COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FY ENDED SEPTEMBER 30, 2001,
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COMPREHF�TSIVE ANNUAL
� �
FINANCIAL REPORT
for Fiscal Year Ende� September 30, 2001
Certificate of
Achievement
for Excellence
in Financial
F�eporting
Presented to
City of Clearwater,
Florida
For its Comprehensive Annual
Financial F�eport
for the Fiscal Year Ended
September 30, 2000
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
�pN�s�E OfFj�
����FTH� �
� �NREO STAIES y
u=, � ANO � �
iI CANpDA � Pr sident
6 CORPORFTION f g
1'o�jE�S,L�, a@�
� LNICA6t �`�
���El��
Executive Director
City of Clearwater, Florida
Comprehensive Annual Financial Report
for Fiscal Year Ended September 30, 2001
Ed Hart
Vice Mayor-Commissioner
Brian j. Aungst
Mayor-Commissioner
Whitney Gray Hoyt Hamilton
Commissioner Commissioner
William B. Horne II
City Manager
Margaret L. Simmons, CPA
Financial Seruices Administrator
Prepared by: City of Clearwater Financial Services
BillJonson
Commissioner
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� INTRODUCTORY SECTION:
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CITY OF CLEARWATER, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30. 2001
TABLE OF CONTENTS
Paae
Government Finance Officers' Association Certificate ....................................................................................... i
TitlePage ............................................................................................................................................................ ii
Table of Contents ................................... ...
...........................................................................................................vu
Transmittal Letter ��
...........................................................................................................................:..................
OrganizationalChart .........................................................................................................................................xvi
FINANCIAL SECTION:
Indeaendent Auditors' Reaorts:
General Purpose Financial Statements .............................................................................................................1
Compliance and Intemal ConVol Structure ........................................................................................................3
General Puraose Fin�ncial Statements:
Combined Balance Sheet - All Fund Types and Account Groups,
And Discretely Presented Component Units ............................................................................................6
Combined Statement of Revenues, Expenditures and Changes in
Fund Balance - All Govemmental Fund Types, Expendable Trust Fund and
Discretely Presented Component Unit ....................................................................................................10
Combined Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual (Non-GAAP Budgetary Basis) - General and Special
RevenueFund Types ..............................................................................................................................12
Combined Statement of Revenues, Expenses, and Changes in Retained
Earnings/Fund Balances - All Proprietary Fund Types ..........................................................................14
Combined Statement of Changes in Plan Net Assets - Pension Trust Funds ...............................................15
Combined Statement of Cash Flows - All Proprietary Fund Types .................................................................16
Notes to Financial Statements .........................................................................................................................18
Required Supplementary Information - Pension Trust Funds:
Schedules of Funding Progress ................................................................................................................47
Schedules of Employer Contributions .......................................................................................................48
Notes to Schedules of Required Pension Supplementary Information ....................................................49
Financial Statements of Individual Funds:
GENERALFUND :............................................................................................................................................50
� Balance Sheet ............... ......... 51
.......... ..............................................................................................................
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget
and Actual (Non-GAAP Budgetary Basis) .............................................................................................52
� SPECIAL REVENUE FUNDS :.........................................................................................................................55
CombiningBalance Sheet ..............................................................................................................................56
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ...................................58
� Special Development Fund:
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budgetand Actual ............................................................................................................................60
Community Redevelopment Agency:
' Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budgetand Actual ............................................................................................................................61
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DEBTSERVICE FUNDS :.................................................................................................................................63
CombiningBalance Sheet ..............................................................................................................................64
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance .....................................66
CAPITALPROJECTS FUNDS :........................................................................................................................69
CombiningBalance Sheet ...............................................................................................................................70
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ....................................71
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CITY OF CLEARWATER, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30. 2001
TABLE OF CONTENTS, Continued
ENTERPRISEFUNDS : ...................................................................................................................................73
CombiningBalance Sheet ............................................................................................................................. 74
Combining Statement of Revenues, Expenses, and Changes in Retained Earnings ..................................78
Combining Statement of Cash Fiows ............................................................................................................ 80
INTERNALSERVICE FUNDS :........................................................................................................................85
CombiningBalance Sheet ............................................................................................................................. 86
Combining Statement of Revenues, Expenses, and Changes in Retained Earnings,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,88
Combining Statement of Cash Flows ............................................................................................................ 90
FIDUCIARYFUNDS : .......................................................................................................................................93
CombiningBalance Sheet ............................................................................................................................. 94
Combining Statement of Plan Net Assets - Pension Trust Funds ...................:............................................95
Combining Statement of Changes in Plan Net Assets - Pension Trust Funds ............................................ 96
Statement of Revenues, Expenditures, and Changes in Fund Balance - Expendable Trust ...................... 98
Agency Fund - Statement of Changes in Assets and Liabilities ......:............................................................ 99
GENERAL FIXED ASSEf ACCOUNT GROUP :..........................................................................................101
Schedule of General Fixed Assets/Sources of Investment .........................................................................102
Summary of General Fixed Assets by Function and Activity ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,103
Summary of Changes in General Fixed Assets by Function and Activity,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,104
COMPONENT UNIT - Clearwater powntown Development Board : ............................................................105
BalanceSheet ..............................................................................................................................................106
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budgetand Actual ..........................................................................................................................107
SUPPLEMENTARY INFORMATION :...........................................................................................................109
Continuing Disclosure - Gas System Revenue Bonds, Series 1996A ........................................................110
Continuing Disclosure — Water & Sewer Bonds, Series 1993 & 1998 ........................................................114
Continuing Disclosure — Stormwater Bonds, Series 1999 ..........................................................................117
FireServices Program .................................................................................................................................118
STATISTICALSECTION : ......................................................................................................................................119
Table I General Governmental Expenditures by Function - Last Ten Fiscal Years ...............................120
Table II General Revenues by Source - Last Ten Fiscal Years ...............................................................122
Table III Property Tax Levies and Collections - Last Ten Fiscal Years ....................................................124
Table IV
Table V
Table VI
Table VII
Table VIII
Table IX
Table X
Assessed and Estimated Property Valuations Last Ten Fiscal Years ........................................126
Property Tax Rates - All Direct and Overlapping Governments -
LastTen Fiscal Years ................................................................................................................128
PrincipalTaxpayers .....................................................................................................................130
Ratio of Net General Bonded Debt to Taxable Assessed Value and Net
Bonded Debt Per Capita - Last Ten Fiscal Years .....................................................................131
Ratio of Annual General Debt Service to Expenditures - General
Bonded Debt, General Revenue Certificates, and Mortgages
and Notes - Last Ten Fiscal Years ......................................................................................132
Computation of Legal Debt Margin ..............................................................................................134
Computation of Direct and Overlapping Debt,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,134
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CITY OF CLEARWATER, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30 2001
TABLE OF CONTENTS, Continued
Paae
' Table XI Revenue Bond Coverage:
Water and Sewer Revenue Bonds Coverages .........................................................................135
Pubtic Service Tax Revenue Bonds Coverages .......................................................................136
' Gas Revenue Bonds Cove�ages ...............................................................................................137
Stormwater Revenue Bonds Coverages ...................................................................................138
Infrastructure Sales Tax Revenue Bonds Coverages ............................................................... � 38
� Table XIII Demographic Statistics - Last Ten Fiscal Years .........................................................................139
Table XIV Property Value, Construction, and Bank Deposits - Last Ten Fiscal Years ...............................140
Table XV Miscellaneous Facts ....................................................................................................................142
� SINGLE AUDIT / GRANTS COMPLIANCE SECTION :........................................................................................145
� Report on Compliance with Requirements Applicable to Each Major Program and Internal
Control Over Compliance in Accordance with OMB Circular A-133 ...........................................................147
Schedule of Expenditures of Federal Awards and State Financial Assistance for the Year Ended
� September 30, 2001 ....................................................................................................................................149
Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance ................................153
Schedule of Findings and Questioned Costs for the Year Ended September 30, 2001 ................................154
` Management Letter as Required by Rules of the Auditor General .................................................................156
Management Advisory Comments ...................................................................................................................158
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CITY MANAGER
March 28, 2002
C ITY OF C LEARWATER
POST OFFICE BOX 4%48� CLEARWATER� FLO�DA 33758-4748
CITY HALL, 112 SOUTH OSCEOIA AVENUE, CLEARWATER, FLO�uon 33756
TELEPHONE �%2%� 562-4040 Fnx (72� 562-4052
The Honorable Mayor-Commissioner and
The Ciry Coxnmissioners
Ciry of Clearwater
Clearwater, Florida
Ladies and Gentlemen:
The Comprehensive Annual Financial Report of the Ciry of Clearwater (the "City") for the fiscal
year ended September 30, 2001, is submitted herewith. Responsibility for the accuracy of the
presented data and the completeness and fairness of presentation, including all disclosures, rests
with the City. We believe the data presented is accurate in all material respects, and that it presents
fairly the financial position and results of operations of the various funds and account groups of the
City. We also believe that all disclosures necessary to properly interpret the data presented, and to
enable the reader to gain an undexstanding of the City's financial activities have been included.
The Comprehensive Annual Financial Report is presented in three sections: introductory, financial,
and statistical. The introductory section includes a tide page listing the principal government
officials, this transmittal letter, and the GFOA Certificate of Achievement for Excellence in
Financial Reporting awarded to the City for its fisca12000 Comprehensive Annual Financial Report.
The financial section includes the general purpose financial statements and the combining and
individual fund and account group financial statements and schedules, as well as the independent
auditor s report on the financial statements and schedules. The statistical section includes selected
financial and demographic information, presented on a multi-year basis for comparison.
Also included is an additional section on the Ciry's compliance with Federal and State grant
requirements, including a report on internal control and compliance and the Management Letter.
Re�orting Entitv
I Chapter 9710, Special Laws of Florida, incorporated the City of Clearwater, Florida in 1923, as
amended. The Ciry provides municipal services of police and fire protection; construction and
maintenance of streets, bridges, sidewalks, storm drauiage, pubhc parks and recreation facilities; a
� Ciry operated marina; a convenrion center; planning, zoning, subdivision and building code
regulation and enforcement; supervised recreation programs; public libraries; redevelopment of
declining commercial and residential neighborhoods; solid waste collection and recycling, natural
� gas distribution; water supply and distribution; waste water collection, treaunent and disposal;
stormwater management; and operation of the city-wide parking system.
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Reported herein are all funds and account groups of the Ciry, including the Communiry
Redevelopment Agency, which form the primary government. The Cleaxwater powntown
Development Board, fiscally dependent upon the City of Clearwater, has been reported in a
separate column as a component unit due to govemance by a separate board.
BRIAN J. AUNGST, MAYOR-COMMISSIONER
ED Hntt'r, VICE MAYOR-COMMISSIONER WHITNEY GRAY, COMMISSIONER
HOYT HAMILTON, COM'v11SSIONER � BILL JONSON, COMMISSIONER
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��EQUAL EMPLOYMENT AND AFFIRMATNE ACTION EMPLOYER��
Economic Condition and Outlook
Clearwater is located on Florida's west coast, just north of St. Petersburg and west of Tampa.
Clearwater is home to one of the most beautiful public beaches in the world and tourism is an
important �omponent of the economy. However, Clearwater also enjoys a diversity of
manufacturing, service industries, high-tech companies, and a significant retirement population.
Economic prospects for 2002 reflect the downturn in the national economy. The unemployment
rate in Pinellas County is projected at 5.6% versus 3.5% for fiscal 2001. Additionally, housing
starts and commercial construction are expected to be down from fiscal 2001 levels. This
downturn in the economy is a major change from the robust economy that we have enjoyed in
recent years. However, the City of Clearwater is well-poised to "weather the storm" due to its
diversified revenue sources and conservative fiscal policy. Adequate fund balances and a legal
debt limit well below statutory limits continue to provide the City of Clearwater with an
additional margin of continued fiscal security.
Major Initiatives - Current Year
The Planning Department played a significant role in the development of three comprehensive
area plans during fiscal 2001. The first, Beach By De.rign, is a comprehensive blueprint with
recommendations for the future development of Clearwater Beach. 'I'he second, the Do�vntown
Cleanvater Periphery P/an 2000, contains planning guidelines for the downtown periphery areas.
Finally, the Downtolvn Kedevelopment Plan, although not yet finalized, will guide the future of much-
needed downtown redevelopment.
Other major initiatives during the current fiscal year included the planning, design, financing, and
solicitation of public input into several major projects, including a new main library, a new
Memorial Causeway Bridge, a"Town Lake" in downtown Clearwater, North Greenwood
neighborhood improvements, and additional fire stations. Planning for all of these pxojects was
successfully completed during fisca12001 and the projects are discussed in the following section
of future initiatives.
Major Initiatives — Future
Planning and financing for the new main library, the new Memorial Causeway Bridge, and the
"Town Lake" project were finalized during fiscal 2001, with construction to begin in early 2002.
The new 90,000 square foot main library, overlooking the Intercoastal Waterway in downtown
Clearwater, is destined to become a focal point of downtown redevelopment. Expected
completion is 2003. The new Memorial Causeway Bridge, which will also begin construction in
2002, will be a fixed, high span "signature piece" bridge to replace the current drawbridge.
Expected completion of the bridge is 2004. Finally, the "Town Lake" project is a four acre
stormwater treatment pond and park amenity in downtown Clearwater. The project is expected
to be completed during 2002 and the accompanying residential development should play a key
role in downtown redevelopment.
Several projects will also be undertaken in the North Greenwood community during fiscal 2002.
These include a new recreation and aquatics center, branch library, and North Greenwood
Avenue corridor enhancements.
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Finally, construction of two new fire stations, a Sand Key fire station and a"Northwest" station,
are slated to begin during fiscal 2002, with construction to be completed during fiscal 2002 and
2003 respectively.
Internal and Buc�getary Control
Effective internal accounting control is a major emphasis in the City's accounting system. Internal
control seeks to provide reasonable, but not absolute assurance that assets are safeguarded against
loss from unauthorized use or disposition, that financial records are reliable for preparing financial
statements and maintaining accountabiliry for assets, and that applicable laws and regulations. are
complied with. In addition to annual reviews by the independent auditors as part of their audit of
the financial statements, the City maintains an Intemal Audit Department consisting of two
professional internal auditor positions.
Although the legal level of budgetary conuol is the individual fund, administrative budgetary control
was maintained at the departmental level in fiscal 2001 by the encumbrance of funds when a
purchase order is entered into the system. Pursuant to authority delegated to the City Manager,
formal amendments are processed administratively when purchase commitments exceed available
controlled balances. Quarterly budget status reports to the City Commission detail these
adjustments. Open encumbrances are reported as reservations of fund balances at September 30,
2001.
Govemmental Funds
Governmental Funds are used to account for primarily tax-supported services (as distinguished
from those services supported from user charges). The governmental fund types include the
General, Special Revenue, Debt Service, Capital Project, and Expendable Trust Funds. Following is
a summary of revenues for all govemmental funds for fiscal 2001 (including the Clearwater
Downtown Development Board, a discretely presented component unit), with comparative figures
for 2000.
Revenues:
Taxes (Property, Utilities Services, and Franchise)
Licenses, Permits, and Fees
Intergovernmental
Charges for Services:
Administrative Charges to Other Funds
Other Charges
Fines, forfeitures and Penalties
Miscellaneous Revenues
Total Revenues
All Governmental Funds
2001 2000
$ 52,043,999 $ 49,205,277
4,408,637 5,432,799
33,105,406 26,073,855
7,613,256 6,971,733
1,765,411 1,504,268
2,015,067 1,921,448
7,028,322 3,996,658
$ 107,980,098 $ 95,106,038
Property Taxes remain the most important single revenue provided to Governmental Funds.
Property taxes collected in 2000/Ol totaled $27,856,905, which represented approximately 25.8% of
total governmental revenues. Comparable figures from the previous year were $26,219,674 and
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27.6%, respectively. The current year increase in properry tax revenue of 6.2% was due to a
corresponding increase in the taxable assessed valuation, with no increase in the millage rate. Out
of the total taxes collected, $1,738,590 was earmarked for capital improvements to the Ciry's roads
and is reported in the Special Development Fund, rather than the General Fund. Additionally
$144,895 represented millage for the Downtown Development Board. The Downtown
Development Board is reported as a discretely presented component unit in the accompanying
financial statements.
The January 1, 2000 assessed valuation, which is used as the base for levying fiscal year 2001
properry taxes, was $5.209 billion after exemptions, versus $4.903 for the prior year. The properry
tax levy millage rate was 5.5032 per thousand of taxable value. There is no general obligation debt
included in the millage, resulting in a non-voted millage rate of 5.5032. Since the City is permitted
by state law to levy ten mills without referendum, there remains a legal millage margin of 4.4968,
which would produce $23,423,000 of additional revenue based on the January 1, 2000 assessed
valuation.
Licenses, Permits, and Fees reflect a decrease of $1,024,162 due to a$1,503,000 "Fee in Lieu of
Parking Spaces" received by the Special Development Fund from the Church of Scientology for
their new downtown headquarters during fisca12000. Miscellaneous Revenues reflect an increase of
$3,031,664 primarily due to improved unrealized interest earnings on the City's cash pool
(approximately $2.2 million). This unrealized interest must be recognized pursuant to govemmental
accounting standards but does not reflect available resources due to the City's policy of holding
investments until maturity.
An analysis of General Fund data, as presented on pages 6-12 of the financial statements, reflects an
unreserved fund balance of $11,806,128 as of September 30, 2001. This amount represents 14.6%
of fisca12001 expenditures and operating transfers, and 13.4% of the adopted fiscal 2002 budget.
Both figures exceed the 8% "target" adopted by City Commission policy.
Following is a comparative summary of Governmental Fund expenditures (including the
Downtown Development Board):
Expenditures:
General Government
Pubiic Safety
Physical Environment
Transportation
Economic Environment
Human Services
Culture and Recreation
Capital Outlay
Debt Service
Total Expenditures
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All Governmental Funds
2001 2000
$ 9,486,088 $ 9,126,217
42,442,045
2,221,979
5,401,902
2,466,515
699,699
18,301,610
42, 676, 646
41,362,225
2,245,047
5,091,703
2,319,156
633,960
16,932,942
16,885,678
2,257,198 2,141,246
$ 125,953,682 $ 96,738,174
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� Capital Outlay expenditures increased by $25,790,968 primarily due to an expenditure of $23,645,638
to the Florida Deparanent of Transportation to fund the new Memorial Causeway Bridge
construction project.
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Enter�rise Funds
The following table presents a summary of significant financial information for the City's enterprise
funds.
Water and Sewer Utility
Gas Utility
Solid Waste Utility
Recycling Utility
Stormwater Utility
Yacht Basin and Marina
Parking System
Harborview Center
Total All Enterprise Funds
Operating
Total Assets Income (Loss)
(in thousands) (in thousands)
2001 2000 2001 2000
$ 210,430 $ 214,366 $ 3,308 $ 3,823
47,587 45,589 4,125 3,397
14,878 13,198 1,564 1,524
4,182 3,785 174 558
32,217 30,233 358 570
4,299 2,630 (71) 26
8,761 6,294 1,208 981
11,640 12,184 726 728
$ 333,994 $ 328,279 $ 9,940 $ 10,151
Net Income
(Loss)
(in thousands)
2001 2000
$ 1,776 $ 1,054
2,470 1,113
1,719 1,306
375 672
(270) 290
312 198
1,480 1,119
1,388 836
$ 9,250 $ 4,916
Net income for all of the Enterprise Funds reflects the impact of nonoperating revenues and
expenses. Included in nonoperating revenues is unrealized interest income. Recognition of this
income/gain is required by govemmental accounting standards. Due to a significant fiscal 2001
decrease in interest rates, all Enterprise funds reflected a significant increase in unrealized interest
earnings. However, due to the City's intent and past practice of holding investments until maturiry,
we consider this to be a"paper" gain only and misleading for the analysis of operations. For that
reason we are analyzing Operating Income (Loss) rather than Net Income, as follows.
The Water and Sewer Utiliry System operaring income decreased from $3,822,976 for fiscal 2000 to
$3,307,499 for fiscal 2001, despite a 2.8% increase in operating revenues. The decrease in operating
income was due to a 4.8% increase in operating expenses, primarily in the Personal Services and
Professional Fees expense categories.
Operating income for the C�as Utiliry Fund increased from $3,396,737 for fisca12000 to $4,124,684
for fisca12001. This 21.4% increase in operating income was due to a 43.6% increase in operating
revenues, from $21,042,436 in fiscal 2000 to $30,223,615 in fisca12001, partially offset by significant
increases in gas inventory costs and repairs and maintenance expenses.
The Solid Waste Utility realized an increase in operating income from $1,524,418 in fiscal 2000 to
$1,564,064 in fiscal 2001. This 2.6% increase in operating income was primarily due to increased
Service Charges (roll-of fl to Customers partially offset by related increases in Transportation and
Operating Materials and Supplies expense categories.
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Operating income for the Recycling Utility Fund decreased from $557,656 in fiscal 2000 to
$174,494 in fisca12001. This decrease was caused by the weak markets for recyclable commodities
reflected in the Sales to Customers revenue category.
The Stormwater Utiliry Fund recognized a decrease in operating income from $569,516 in fiscal
2000 to $358,179 in fisca12001, despite an increase in operating revenues from $4,805,417 in fiscal
2000 to $5,041,822 in fisca12001. The decrease in operating results was primarily due to an increase
in Personal Services expenses from $1,218,229 in fisca12000 to $1,504,608 in fisca12001, along with
increases in the Transportation and Miscellaneous Expense categories.
Operating income for the Yacht Basin and Marina Fund decreased from $26,486 in fiscal 2000 to
an operating deficit of ($70,889) in fiscal 2001, despite an increase in operating revenues from
$2,577,830 in fiscal 2000 to $2,813,147 in fiscal 2001. The improved operating revenues were
negated by an increase in Personal Services from $600,120 in fisca12000 to $727,692 in fisca12001,
along with increases in the Purchases for Resale, Operating Materials, and Depreciation expense
categories.
The Paxking System Fund realized an increase in operating income from $980,722 in fisca12000 to
$1,207,739 in 2001, due to a 13.3% increase in operating revenues, partially offset by related
increases in operattng expenses.
Operating results for the Harborview Center Enterprise Fund remained relatively constant with
operating deficits of ($727,674) and ($725,596) for fiscal 2000 and 2001, respectively. Net income
for the Harborview Center improved dramatically from a deficit of ($835,482) in fiscal 2000 to a
gain of $1,387,881 for fiscal 2001, due to an operating transfer subsidy from the Central Insurance
Fund of $2,200,000 during fiscal 2001. Fiscal 2001 represented the fifth full year of operation for
the Harborview Convenrion Center.
Em�loyee Retirement S, st�
The Employees' Pension Plan and the Firemen's Pension Plan are self-administered by the City.
City contributions for the year were $4,255,484 to the Employees' Plan and $1,098,990 to the
Firemen's Plan, and 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 properry 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.
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Debt Administration
At September 30, 2001, the City had total outstanding long-term debt of approximately $179.3
million. This debt included notes, mortgages, and contracts of $14.1 million, and revenue bonds of
$162.5 million. The City had no general obligation debt outstanding during the fiscal year ended
September 30, 2001.
For debt obligations existing as of September 30, 2001, Clearwater s current ratings from national
rating agencies are as follows:
Public Service Tax & Bridge Revenue Bonds Series 1985
(MBIA Insure�
Improvement Revenue Bonds Sexies 1995 (MBIA Insure�
Stormwater System Revenue Bonds Series 1999 (MBIA Insurec�
Water and Sewer Revenue Bonds Series 1993 (AMBAC Insurec�
Water and Sewer Refunding Revenue Bonds Series 1998
(FGIC Insure�
Gas System Revenue Bonds Series 1996A (AMBAC Insure�
Gas System Revenue Bonds Series 1997A&B (MBIA Insure�
Gas System Revenue Bonds Series 1998 (AMBAC Insure�
Infrastructure Sales Tax Revenue Bonds Series 2001 (FSA Insure�
Standard
and Poor's
Cor�orarion
AAA
AAA
AAA
AAt1
AA.A
�1AA
n/a*
n/a*
AA1�
Moody's
Investors
Service
Aaa
Aaa
Aaa
Aaa
Aaa
Aaa
Aaa
Aaa
Aaa
* Ratings for the Gas System Revenue Bonds Series 1997A&B and Series 1998 were obtained
from Moody's (as indicated) and Fitch IBCA rating service. Fitch IBCA assigned a rating of AAA
to the Gas System 1997A&B and the 1998 issues.
The computation of the legal debt margin imposed by City Charter (Table IX of the Statistical
Section of this report) indicates a low proportion of indebtedness at September 30, 2001, in relation
to the debt limitation based on property values at January 1, 2000. Table XI of the Statistical
Section demonstrates that coverages for each of the Ciry's revenue bonds are adequate. The City
currendy has no general obligation debt outstanding as indicated by Table VII of the Statistical
Section.
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Cash Management
As more completely described in Note (1C), 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
m�X�mi7e the retum, 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 6.18% on its investments during fiscal year 2001.
Risk Management
As stated in Note (1I�, the City is self insured within certain parameters for losses arising from
claims for general liability, auto liabiliry, police professional liabiliry, public official's 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 Central Insurance Fund recognized a net income of $70,472 for fiscal 2001 and total
fund equiry equaled $14,547,959 as of September 30, 2001. The City is nat 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, 2001.
Inde�endent Audit
As required by Section 2.01(c)3 of the City Charter, by state law, and by various covenants relating
to debt and pension obligations of the City, all funds and account groups of the City have been
audited by independent accountants. The reports of Grant Thornton L.L.P. (pages 1-4 of this
report) contain their opinion attesting to the fairness of the applicable financial statements included
in this report, in conformity with accounting principles generally accepted in the United States of
America.
Awards
The Ciry has received the Certificate of Achievement for Excellence in Financial Reporting for the
Comprehensive Annual Financial Report dated September 30, 2000, making twenry-two
consecutive years that the City has received this prestigious recognition. This award is presented by
the Govemment Finance Officers Association (GFOA) and is valid for a period of one year only.
We believe this year s report continues to meet the applicable requirements and will again qualify for
this special recognition.
In addition, the Ciry has received the GFOA's award for Distinguished Budget Presentation for the
fiscal yeax 2001 Budget document, making the fifteenth 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 policy documentation, financial planning, organization, and communication.
xiv
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Acknowledgement
We wish to thank the many members of the Cirywide 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 Cit�s extemal auditors, Grant Thomton, LLP, for their advice and assistance
in the preparation of this report Finally, we would like to thank the Ciry Commission for their
interest, continued support, and leadership in planning and conducting the financial operarions of
the City in a progressive and responsible manner.
� Sincerely,
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illiam B. Home, II
City Manager
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Margaret L. Siminons, CPA
Finance Director
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, Accountants and Management Consultants
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Grant Thornton T
Report of Independent Certified Public Accountants
Honorable Mayor-Commissioner,
City Commissioners and City Manager
City of Clearwater, Florida
We have audited the accompanying general purpose financial statements and the combining,
individual fund and account group financial statements of the City of Clearwater, Florida ("Cit�'), as
of and for the year ended September 30, 2001, as listed in the table of contents. These financial
statements are the responsibility of the City's management. Our responsibility is to express an
opinion on these financial statements based on our audit. We did not audit the financial statements
of the Clearwater powntown Development Board, a component unit. Those financial statements
were audited by other auditors whose report thereon has been furnished to us, and in our opinion,
insofar as it relates to the data included for the Clearwater powntown Development Board, is based
solely on the report of the other auditors. The financial statements of the Ciry as of and for the year
ended September 30, 2000, were audited by other auditors whose reported dated February 23, 2001,
expressed an unqualified opinion on those statements.
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 GovernmentAuditing
Standards, issued by the Comptroller General of the United States. These standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes 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
opinion.
As described in Note 6 to the financial statements, the City adopted the provisions of Governmental
Accounting Standards Board Statement No. 33, Accountingand Financial ReportingforNonexchange
Transactions in 2001.
� In our opinion, the general purpose financial statements referred to above present fairly, in all
material respects, the financial position of the City of Clearwater, Florida as of September 30, 2001,
and the results of its operations and the cash flows of its proprietary fund types for the year then
ended, in conformity with accounting principles generally accepted in the United States of America.
rAlso, in our opinion, the combining, individual fund and account group financial statemenu referred
; to above present fairly in all material respects, the financial position of each individual fund and
account group of the City of Clearwater, Florida as of September 30, 2001, and the results of
� operations of such funds and the cash flows of the individual proprietary funds for the year then
ended, in conforrtury with accounting principles generally accepted in the United States of Amenca.
�
Suite 3850
101 E. Kennedy Blvd
�7ampa, FL 33602-5154
T 813.229.7201
F 813.223.3015
W www.grantthornton.com
�Grant Thomton LLP
US Member of Grant Thornton International
Our audit was made for the purpose of forming an opinion on the general purpose, combining,
individual fund and account group financial statements of the City taken as a whole. The
accompanying schedule of espenditures of federal awards and state financial assistance on pages 149
through 152, as required by OMB Circular A-133, and Chapter 10.550 of the Rules of the Auditor
General, is presented for purposes of additional analysis and is not a required part of the general
purpose, combining, individual fund and account group financial statements of the City. Such
information has been subiected to the auditing procedures applied in the audit of the general
purpose, combining, individual fund and account group financial statements and, in our opinion, is
fairl�� stated in all material respects in relation to the general purpose, combining, individual fund and
account group financial statements, taken as a whole.
The schedule of funding progress and the schedule of employer contributions on pages 47 through
49 are not a required pan of the general purpose financial statements, but are supplementary
information required by the Governmental Accounting Standards Board. We have applied to the
schedule of funding progress and the schedule of employer contributions certain limited procedures
prescribed by professional standards, which consisted principally of inquiries of management
regarding the methods of ineasurement and presentation of the schedule. However, we did not audit
this information and express no opinion on it.
The accompanying financial information presented as supplementary information on pages 109
through 118 and the statistical section on pages 120 through 144 is presented for purposes of
additional analysis and is noc a required part of the financial statements of the City. Such information
has not been subjected to the auditing procedures applied in the audit of the general purpose,
combining, individual fund and account group financial statements, and, accordingly we express no
opinion on it.
In accordance with GovernmentAccountingStandards, we have also issued our report dated Febivary 14,
2002, on our consideration of the City's internal control over financial reporting and our tests of its
compliance with certain provisions of laws, regulations, contracts and grants. That report is an
integral part of an audit performed in accordance with GovernmentAuditing Standards and should be
read in conjunction with this report in considering the results of our audit.
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Tampa, Florida
February 14, 2002
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Grant Thornton T
� Accountants and Management Consultants
� 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
GOVERNMEl��'TAUDITING STANDARDS
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Honorable Mayor - Commissioner,
City Commissioners and City Manager
City of Clearwater, Florida
We have audited the general purpose financial stater:�ents and the combining, individual fund and account
group financial statemenu of the City of Clearwater, Florida ("City") as of and for the year ended September
30, 2001, and have issued our report thereon dated February 14, 2002. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audiu contain in Government Auditing Standards, issued by the Comptroller General of
the United States. We did not audit the financial statements of the Clearwater powntown Development
Board. Those financial statements were audited by other auditors, whose report has been furnished to us,
and, in our opinion, insofar as it relates to data included for the Clearwater powntown Development Board,
is based on the report of the other auditor.
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 Goz�enzmentAuditingStandards.
Internal Control Over Financial Reporting
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 opinion 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 nsk that misstatements in amounts that would be material in relation to the financial
statement 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 operations 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 February 14, 2002.
�
Suite 3850.
101 E. Kennedy Blvd
�ampa, FL 33602-5154
813.229.7201
813.223.3015
W www.grantthornton.com
�raM Thomton LLP
S Membar of Grent Thornton IMernational
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This re ort is intended solel for the information of the Ma or-Coinmissioner Cit Commissioners, �
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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.
�c��.�' l�,c�•�� l..l._�
Tampa, Florida
February 14, 2002
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GENERAI� PURPOSE
FINANCIAL STATEMENTS
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CITY OF CLEARWATER. FLORIDA
COMBINED BALANCE SHEET - ALL FUND TYPES, ACCOUM GROUPS, �
AND DISCRETELY PRESENTED COMPONENT UNIT
^�EPTEMBER 30. 2001 WITH COMPARATIVE TOTALS FOR 2000
Governmental Fund Types Proprietery Fund Typea �
Spedal Debt Capitel Internal �
General Revenue Service Projects Enterp�ise Service
Assets and Other Debits
Assets:
Cash on Hand and in Banks $ 20,925 100 24,217 2,050 �
Equity in Pooled Cash and Investments 10,773,512 12,456,989 1,652,215 67,103,931 17,547,173 24,409,072
Investments
Receivables (Net Where Applicable, �
of Allowances for Estimated
Uncollectible Amounts):
Accounts and Contracts 313,371 8,408,656 77
Mortgages, Notes and Other Loans 3,370,799 �
OtherTaxes 2,169,593
Improvement Liens 104,899
Interest and Dividends �
Rehabilitation Advances 51,001
Property Taxes 28,070,874 1,881,395
Other 102,316
Due from Other Funds 14,478,276 1,222,982 �
Due from Other Funds (Deficit in Pooled Cash) 265,481
Due from Other Govemmental Entities 986,337 2,069,523 515,133
Inventories, at Cost 6,004 969,845 75,666 �
Prepaid Expenses/Expenditures
and Other Assets 13,101 4,664 1,116,196
Restricted Assets:
Equity in Pooied Cash and Investments 35,633,914 �
Investments 3,058,741
Interest Receivable 86,196 5,793
Due hom Other Funds 2,149,511 �
Due hom Other Governmental Entities 455,000
Advances to Other Funds 2,668,867
Deferred Charges 5,011,620
Net Pension Asset 3,631,252 1,278,061 �
Property Held for Resale 1,171,328
Property, Plant and Equipment (Net
of Accumulated Depreciation) 242,019,480 15,567,687 �
Other Debits:
Amount Available in Debt Service Funds
Amount to be Provided for Retirement
of General Long-Term Debt �
Amount to be Provided for Compensated Absences
Total assets and other debits $ 42,353,717 21,103,451 1,652,215 67,474,311 333,993,678 46,346,451 �
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See accompanying notes to Fnancial Statements. �
6
Page 1 of 2
Component
Fiduclary Prlmery Unit
Fund Type Account Groups Government Clearwat� Reporting EnUty
General General Totds Downtown Totels
Trust and Fixed Long-Term (Memorandum Development (Memorendum Only)
Agency Asseffi Debt Only) Board 2001 2000
15,594 62,886 62,886 72,740
4,890,601 138,833,493 98,648 138,932,141 94,381,385
429,353,416 429,353,416 429,353,416 526,529,519
8,722,104 8,722,104 8,507,049
4,493,208 7,864,007 7,864,007 7,367,003
2,169,593 2,169,593 2,314,185
104,899 104,899 127,362
2,295,165 2.295,165 2,295.165 2.302,415
60,731 111,732 111,732 128.625
29,952,269 29,952,269 27,449,051
39,392 141,708 141,708 232,442
15,701,258 15,701,258 30,305,113
265,481 265,481 17,560,428
3,570,993 3,570,993 3,270,809
1,051,515 1,051,515 1,227,971
1,133,961 1,133,961 819,139
35,633,914 35,633,914 33,862,043
3,058,741 3,058,741 2,990,334
91,989 91,989 91,989
2,149,511 2,149,511 3,507,075
455,000 455,000 70,073
2,668,867 2,668,867 3,014,545
5,011,620 5,011,620 5,386,021
4,909,313 4,909,313 4,028,237
84,701 1,256,029 1,256,029 1,256,029
206,486,402 464,079,569 464,073,569 438,902,931
1,540,439 1,540,439 1,540,439 338,155
59,606,119 59,606,119 102,027 59,708,146 13,429,173
5,451,559 5,451,559 5,451,559 5,149,725
441,232,808 206,486,402 66,598,117 1,227,241,150 200,675 1,227,441,825 1,234,621,566
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(Contlnued)
%
CITY OF CLEARWATER. FLORIDA
COMBINED BALANCE SHEET - ALL FUND TYPES, ACCOUNT OROUPS,
AND DISCRETELY PRESENTED COMPONENT UNIT, CONTINUED
SEPTEMBER 30. 2001 WITH COMPARATIVE TOTALS FOR 2000
Dovemmental Fund Types Proprietary Fund Types
Special Debt Capitel Intemal
Qeneral Revenue Service ProJects Enterprise Service
Lfabllities, Equlty and Other Credtts
.Liabilities:
Accounis and ConVacts Payable
Accrued Payroll
Accrued Compensated Absences
Accrued Interest Payable
Claims Payable
Due to Other Funds
Due to Other Funds (Deflcit in Pooled Cash)
Due to Other Governmenial Enti6es
Deposits
ConsVuction Escrows
Deferred Revenue
Deferred Assessment Liens
Other Miscellaneous Payables
Payable from Restricted Assets
Advances from Other Funds
Revenue Bonds Payable
Mortgages, Notes, Loan Pool Agreements
and Acquisition Contracts Payable
Total Liebilities
E�uib and Other Credits:
Investment in General Fixed Assets
Contributed Capifal
Retained Eamings:
Reseroed for:
Revenue Bond Requirements
Employees' Pension BeneSts
Unreserved
Fund Balances:
Reserved for:
Prepaid Expenditures
Encumbrances
Debt Service Requirements
Advances to OU�er Funds
Noncurrent Notes Receivable
Employees' Pension Benefits
Special Programs
Unreserved:
Designated for Special Programs
Designated for Debt Service
Designated for Capital Projects Appropriations
Undesignated
Total Retained Eamings/
Fund Balances
Total Equily and Other Credits
$ 113,390
876,359
24,925
8,149
4,192
28,380,221
84,338 1,571 1,455,758 3,311,034
28,584 772,457
876,817
110,205 155,394
103,892 17,283,479 138,473
138,627
510,908
137,501
222,897
1,983,508 784,476
104,899
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844,300
112,939 �
481,538
9,337,296
300,000 �
10,773,540
74,775 926,596 1,096,426 571,070
105,970,250
1,644,685 7,683,929
29,482,011 3,999,328 111,776 18,844,136 125,640,853 19,331,072
115,507,501 4,539,428
22,682,243
3,631,252 1,278,061
66,531,829 21,197,890
13,101
1,052,477 2,313 8,070,136
892,527
10,000
2,314,036
7,401,349
647,912
42,560,039
11,806,128 7,378,425
12,871,706 17,104,123 1,540,439 48,630,175 92,845,324 22,475,951
12,871,706 17,104,123 1,540,439 48,630,175 208,352,825 27,015,379
$ 42,353,717 21,103,451 1,652,215 67,474,311 333,993,678 46,346,451
��o-�o
See accompanying notes to Financial Statements.
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Page 2 of 2
• Component
Fiduclary Primary Unit
Fund Type Account C�roups Qovemment Clearwater Reportlng Entlty
Oeneral Oeneral Totals Downtown Totals
Trust and Fixed Long-Term (Memorandum Development (Memorandum Only)
Agency Assets Debt O�IV) Board 2001 2000
� 448,314 6,258,703 6,258,703 5.466,882
1,790,319 1,790,319 1,305,794
5,451,559 6,809,714 6,809,714 8,885,607
265,599 285,599
� 9,337,296 9,337,298 10,883,393
17,850,769 17,850,769 33,812,188
126.854 265.481 285,481 17,560,428
519,057 519,057 289,807
37,502 179,195 179,195 180,023
� 129,404 352,301 352,301 146,502
25,475 31,153,680 31,153,680 28,022,942
104,899 104,899 127,362
143,034 143,034 143,034 171,310
� 10,773,540 10,773,540 8,756,678
2,888.887 2,868,867 3,014;545
56,481,988 162.452,238 182,452,238 119,728,708
� 4,684,570 13,993,184 102,027 14,095,211 10,394,530
910,583 66,598,117 264.917,876 102.027 265,019,903 246,746,699
206,486,402
206,486,402
120,046,929
22,682,243
4,90.9,313
87,729,719
206,488,402 192,490,497
120,048,929 115,343,981
22,682,243 20,994,891
4,909,313 4,028,237
87,729,719 79,139,257
13,101 13,101 14,570
7,124,926 7,124,926 6,515,193
892,527 892,527 338,155
86,291
10,000 10,000 12,500
435,933,960 435,933,980 435,933,960 528,325,088
2,314,038 2,314,038 2,058,164
7,401,349 7,401,349 9,954,357
647,912 647,912
42,560,039 42,560,039 19,691,129
4,388,285 23,570,818 98,648 23,889,466 8,882,559
440,322,225 635.789,943 98.648 635.888,591 680,040,389
440.322,225 206,488,402 962,323.274 98,648 962,421,922 987,874,867
441,232,808 206,488,402 66,598,117 �_227,241,150 200,675 1,227,441,825 1,234,621,566
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COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
ALL GOVERNMENTAL FUND TYPES, EXPENDABLE TRUST FUND
AND DISCRETELY PRESENTED COMPONENT UNIT
cicrni vFqR EI�DED SEPTE6�BER 30�2001 �"!RH GOh�PARATIVE TOTALS FOR 2000
Revenues:
Taxes
Licenses, Permits, and Fees
Intergovemmental Revenues
Charges for Services:
Administrative Charges to Other Funds
Other Charges
Fines, Forfeitures, and Penalties
Miscellaneous Revenues
Total Revenues
Expenditures:
Current:
General Govemment
Public Safety
Physical Environment
Transportation
Economic Environment
Human Services
Culture and Recreation
Capital Outlay
Debt Service:
Principal Retirement
Interest and Fiscal Charges
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses):
Proceeds oflndebtedness
Operating Transfers In
Operating Transfers In - Primary Government
Operating Transfers In - Component Unit
Operating Transfers Out
Operating Transfers Out - Primary Government
Governmental Funds
Special Debt Capltal
General Revenue Service Projects
$ 50,160,514 1,738,590
3,495,192 913,445
13,797,228 13,566,826 634,465 5,100,000
7,613,256
1,765,411
1,550,505 464,562
2,314,275 4,516,049
80,696,381 21,199,472
8,806,187
40,503,177
1,849,476
5,401,902
1,163,02T
570,849
17,781,629
679,901
1,938,868
372,503
1,019,258
128,850
519,981
863,432
48,866 95,850
683,331 5,195,850
41,813,214
1,468,307
788,891
76,076,247 5,522,793 2,257,198 41,813,214
4,620,134 15,676,679 (1,573,867) (36,617,364)
4,040,154
(4,994,823)
898,775 2,776,151
89,044
(16,592,978)
49,379,282
19,765,391
(140,244)
Operating Transfers Out - Component Unit (39,851)
(954,669) (15,645,010) 2,776,151 69,004,429
Excess (Deficiency) of Revenues and Other
Financing Sources Over Expenditures
and OtherFinancing Uses 3,665,465 31,669 1,202,284 32,387,065
Fund Balances, Beginning of Year 9,206,241 17,006,403 338,155 16,243,110
Residual Equity Transfers In 66,051
Fund Balances, End of Year $ 12,871,706 17,104,123 1,540,439 48,630,175
See accompanying notes to Financial Statements.
10
Prlmary
Fiduclary Government
Fund Type Totals
Expendable (Memorandum
Trust Only)
51,899,104
4,408,637
6,887 33,105,406
7,613,256
1,765,411
2,015,067
36,020 7,011,060
42,907 107,817,941
9,486,088
42,442,045
2,221,979
5,401,902
203,641 2,385,926
699,699
18,301,610
42,676,646
Component
Unit
Clearwater
Downtown
Development
Board
144,895
17,262
162,157
80,589
Reporting Entity
Totals
(Memorandum Only)
2001 2000
52,043,999 49,205,277
4,408,637 5,432,799
33,105,406 26,073,855
7,613,256 6,971,733
1,765,411 1,504,268
2,015.067 1.921,448
7,028,322 3,996,658
107,980,098 95,106,038
9,486,088 9,126,217
42,442,045 41,362,225
2,221,979 2,245,047
5,401,902 5,091,703
2,466,515 2,319,156
699,699 633,960
18,301,610 16,932,942
42,676,646 16,885,678
1,468,307 1,468,307 1,375,978
788,891 788,891 765,268
203,641 125,873,093 80,589 125,953,682 96,738,174
(160,734) (18,055,152) 81,568 (17,973,584) (1,632,136)
49,379,282
27,480,471
89,044
(143,737) (21,871,782)
(39,851)
(143,737) 55,037,164
(304,471) 36,982,012
4,692,736 47,486,645
66,051
4,388,265 84,534,708
39,851
(89,044)
(49,193)
32,375
66273
98,648
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49,379,282 2,149,140
27,480,471 21,722,873
39,851 31,174
89,044 49,022
(21,871.782) (18,422,379)
(89,044) (49,022)
(39,851) (31,174)
54,987,971 5,449,634
37,014,387 3,817,498
47,552,918 43,423,445
66,051 311,975
84,633,356 47,552,918
CITY OF CLEARWATER. FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS) -
GENERAL AND SPECIAL REVENUE FUND TYPES
FISCAL YEAR ENDED SEPTEMBER 30, 2001
Revenues:
Taxes
Licenses, Permits, and Fees
Intergovemmental
Charges for Services:
Administrative Charges to Other Funds
Other Charges
Fines, Forfeitures, and PenalGes
Miscellaneous Revenues
Total Revenues
Expenditures:
Current:
City Commission
City Manager
Human Relations
Legal
Ciry Cierk
Public Communications and Marketing
Finance
Human Resources
Non-Departmental
Police
Fire
Public WorksEngineering
Public Works-Transportation and Drainage
Parks and Recreation
Library
Planning & Development Services
Neighborhood Housing Services
Marine
Economic Development
Internal Audit
Office of Management & Budget
Grant Writing
Total Expenditures (Budgetary Basis)
Excess (Deficiency) of Revenues Over Expenditures
(Budgetary Basis)
Other Financing Sources (Uses):
Operating Transfers In
Operating Transfers In - Component Unit (DDB)
Operating Transfers Out
Operating Transfers Out - Component Unit (DDB)
Excess of Revenues and Other Financing Sources
Over Expenditures and Other Financing Uses (Budgetary Basis)
Excess of Revenues and Other Financing Sources Over Expenditures
and Other Financing Uses for Non-Budgeted Funds
Encumbered Purchase Orders, Beginning of Year
Encumbered Purchase Orders, End of Year
Excess (Deficiency) of Revenues and Other Financing Sources Over
Expenditures and other Financing Uses (GAAP Basis)
Fund Balances, Beginning of Year
Residual Equiiy Transfers In
Fund Balances, End of Year
` See Note 1 G
See accompanying notes to Financial Statements.
12
General Fund'
Varlance
Favorable
Budget Actual (Unfavorable)
$ 50,126,170
3,517,120
13,850,749
7,582,590
1,761,330
1,565,160
1,694,235
80,097,354
219,170
699,850
577,578
1,236,310
993,110
817,900
1,811,040
1,039,990
1,007,330
25,547,824
14,055,640
2,117,240
5,296,310
13,146,360
4,440,488
3,632,580
624,510
483,210
718,410
138,200
258,850
66,180
78,928,080
1,169,274
4,271,495
(5,014,950)
50,160,514 34,344
3,495,192 (21,928)
13,797,228 (53,521)
7,613,256 30,666
1,765,411 4,081
1,550,505 (14,655)
2,314,275 620,040
80,696,381 599,027
205,578 13,592
569,876 129,974
573,373 4,205
1,137,040 99,270
901,300 91,810
707,801 110,099
1,677,123 133,917
1,049,506 (9,516)
947,254 60;076
24,999,095 548,729
13,197,724 857,916
2,093,013 24,227
5,207,449 88,861
12,883,016 263,344
4,322,842 117,646
3,482,449 150,131
559,494 65,016
487,027 (3,817)
593,340 125,070
128,998 9,202
257,652 1,198
47,260 18,920
76,028,210 2,899,870
4,668,171 3,498,897
4,040,154 (231,341)
(4,994,823) 20,127
(743,455) (954,669) (211,214)
425,819 3,713,502 3,287,683
(1,100,514) (1,100,514)
1,052,477 1,052,477
425,819 3,665,465 3,239,646
9,206,241 9,206,241
$ 9,632,060 12,871,706 3,239,646
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Totals
Special Revenue Fund Types' (Memorandum Only)
VaNance VaHance-
Favorable Favorable
Budget Actual (U�favorable) Budget Actual (Unfavorable)
1,728,820 1,738,590 9,770 51,854,990 51,899,104 44,114
887,520 913,445 25,925 4,404,640 4,408,637 3,997
9,774,494 9,528,154 (246,340) 23,625,243 23,325,382 (299,861)
7,582,590 7,613,256 30,666
1,761,330 1,765,411 4,081
1,565,160 1,550,505 (14,655)
821,812 2,547,095 1,725,283 2,516,047 4,86�370 2,345,323
13,212,646 14,727,284 1,514,638 93,310,000 95,423,665 2,113,665
219,170 205,578 13,592
699,850 569,876 129,974
577,578 573,373 4,205
1,236,310 1,137,040 99,270
993,110 901,300 91,810
817,900 707,801 110,099
80 (80) 1,811,040 1,677,203 133,837
1,039,990 1,049,506 (9,516)
1,007,330 947,254 60,076
25,547,824 24,999,095 548,729
14,055,640 13,197,724 857,916
2,117,240 2,093,013 24,227
5,296,310 5,207,449 88,861
13,146,360 12,883,016 263,344
4,440,488 4,322,842 117,646
3,632,580 3,482,449 150,131
345,448 194,226 151,222 969,958 753,720 216,238
483,210 487,027 (3,817)
718,410 593,340 125,070
138,200 128,998 9,202
258,850 257,652 1,198
66,180 47,260 18,920
345,448 194,306 151,142 79,273,528 76,222,516 3,051,012
12,867,198 14,532,978 1,665,780 14,036,472 19,201,149 5,164,677
320,913 320,914 1 4,592,408 4,361,068 (231,340)
ss,ssa as,oaa (ssa� as,ssa ss,oaa �ssa�
(9,682,325) (15,861,580) (6,179,255) (14,697,275) (20,856,403) (6,159,128)
(39,850) (39,851) (1) (39,850) (39,851) (1)
(9,311,564) (15,491,473) (6,179,909) (10,055,019) (16,446,142) (6,391,123)
3,555,634 (958,495) (4,514,129) 3,981,453 2,755,007 (1,226,446)
990,164 990,164 990,164 990,164
(1,100,514) (1,100,514)
1,052,477 1,052,477
3,555,634 31,669 (3,523,965) 3,981,453 3,697,134 (284,319)
17,006,403 17,006,403 26,212,644 26,212,644
66,051 66,051 66,051 66,051
20,562,037 17,104,123 (3,,� 45�7,914) 30,194,097 29�97� (2�18,268)
13
CITY OF CLEARWATER. FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN
RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES
FISCAL YEAR ENDED SEPTEMBER 30. 2001 WITH COMPARATIVE TOTALS FOR 2000
Operating Revenues:
Sales to Customers
Service Charges to Customers
User Charges to Customers
Billings W Departmenis
Rentals
OperaUng Expenses:
Personel Services
Purchases for Resale
OperaGng Materials and Supplies
Transportation
Utility Service
Solid Waste Dumping Charges
Depreciation
Interfund Administrative Charges
Other Current Charges
Operaling Income
Nonoperating Revenues (Expenses):
Earnings on Investmenis
Interest Exper�e and Fiscal Charges
AmorGzation of Bond Discount and Issue Cosis
Gain (Loss) on Exchange of Assets
Losses from Writedowns end Replacements of Fxed Assets
Recycling Program Incen6ve Grant
Other
Income Before Operaling Transfers
Operating Transfers In
Operating Transfers Out
Net Income
Retained Earnings, Beginning of Year
Residual Equity Transfers In
Residual Equity Transfers Out
Retained Earnings, End of Year
See accompanying notes to Financial Statements.
Totals
Proprletery Fund Types (Memorandum Only)
Internal
Enterprise Service 2001 2000
$ 71,521,564 71,521,564 61,622,034
17,463,925 17,463,925 16,313,751
5,436,368 5,436,368 4,990,061
28,907,080 28,907,080 27,652,555
3,056,672 3,056,672 2,880,505
97,478,529 28,907,080 126,385,609 113,458,906
18,591,551 6,986,717 25,578,268 23,743,082
25,101,145 2,120,987 27,222,132 21,062,755
2,518,983 420,009 2,938,992 2,920,347
4,690,589 150,679 4,841,268 4,264,766
2,008,528 445,472 2,454,000 2,208,997
4,553,562 4,553,562 4,455,706
8,723,681 3,481,305 12,204,986 11,913,719
10,264,720 219,080 10,483,800 9,779,900
11,085,596 11,975,292 23,060,888 21,448,810
87,538,355 25,799,541 113,337,896 101,798,082
9,940,174 3,107,539 13,047,713 11,660,824
6,185,296 2,651,211 8,836,507 5,432,111
(5,511,550) (382,479) (5,894,029) (6,054,403)
(402,976) (402,976) (401,245)
(6,479) 374,760 368,281 176,651
(4,311) (4,311) (5,716)
141,235 141,235 113,332
802,811 147,541 950,352 669,473
1,204,026 2,791,033 3,995,059 (69,797)
11,144,200 5,898,572 17,042,772 11,591,027
2,239,486 1,180,567 3,420,053 318,865
(4,133,742) (4,895,000) (9,028,742) (3,619,359)
(1,894,256) (3,714,433) (5,608,689) (3,300,494)
9,249,944 2,184,139 11,434,083 8,290,533
83,870,572 20,291,812 104,162,384 95,871,852
58,148 58,148
(333,340) (333,340)
$ 92,845,324 22,475,951 115,321,275 104,162,385
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14
CITY OF CLEARWATER. FLORIDA
COMBINED STATEMENT OF CHANQE8 IN PLAN NET ASSETS
PENSION TRUST FUNDS
FISCAL YEAR ENDED SEPTEMBER 30. 2001 WITH COMPARATIVE TOTALS FOR 2000
Addltions
Contributions:
Contributions from Employer
Contributions from Employees
State of Florida
Total Contributions
Investment Income (Loss):
Net Appreciation (Depreciation) in Fair Value of Investments
Interest
Dividends
Less Investment Expenses:
Investment Management / Custodian Fees
Net Investment Income (Loss)
Total Additions (Reducttons)
Deductlons
Benefits end Withdrewal Peyments:
Benefits
Withdrawal Payments
Total Benefits and Withdrawal Payments
Income (Loss) before Administrative Expenses
Administrative Expenses
Netlncrease(Decrease)
Net Assets Held fn Trust for Pension Benefits:
Beginning of Year
End of Year
See accompanying notes to Financial Statements.
15
2001 2000
$ 5,354,474 5,466,579
4,855,064 4,868,278
1,211,644 1,392,513
11,421.182 11,727,370
(101,095,884) 63,322,299
12,041,584 12,365,395
2,170,157 2,249,697
(86,884,143) 77,937,391
1,866,947 2,065,152
(88,751,090) 75,872,239
(77,329,908) 87,599,609
14,311,372 12,540,926
551,943 515,433
14,863,315 13,056,359
(92,193,223) 74,543,250
197,903 87,113
(92,391,126) 74,456,137
528,325,086 453,868,949
$ 435,933,960 528,325,086
1\ • :�1 - •- ••
COMBINED STATEMENT OF CASN FLOWS -
ALL PFiOPRIETARY FUND TYPES
..s�e .�■��� ..n..owe�rvc TnTei Cl/]I IOFC Ff1ii 9flM
F1�1,6sNL 7CN1'1 GIVIlCY JGrICIY OGI'1 JV - - � � � ��--
Cash Flows from OperaGng Activities:
Cash Received from Customers
Cash Received from Other Funds
Cash Paymenis to Suppiiers
Cash Payments to Employees
Cash Payments to Other Funds
Other Revenues
Net Cash Provided by Operating Activities
Cash Flows from Noncapital Financing AcUvities:
Operating Transfers In
Operating Transfers Out
Grant Revenue
Interest Paid
Receipt of Cash on Loans td(rom Other Funds
Payment of Cash on Loans to/from Other Funds
Net Cash Provided (Used) by Noncapital Fnancing Activities
Cash Flows from Capilal and Related Fnancing AcUvities:
Principal Payments on Debt
Interest Paid
Acquisition of Fxed Assets
Sale of Faed Assets
Proceeds from Issuance of Debt
Payment of Bond Issue Cosis
Return of Coniributed Capital
Capital Co�tributed By:
Other Funds
Other Govemmental Entities
Property Owners
Developers
Net Cash Used for Capital and Related Financing Activities
Cash Flows from Investing Activities:
Proceeds hom the Sale and Maturity of Invesimenis
Purchase of Investment Securities
Interest on Investmenis
Net Cash Provided by Investing AcGvities
Net Increase in Cash and Cash Equivalenta
Cash and Cash Equivalenis al Beginning of Year
Cash and Cash Equivalents at End of Year
Cash and Cash Equivalents:
Cash on Hand and in Banks
Equity in Pooled Cash and Investments
ResVicted Equity in Pooled Cash and Investments
Cash and Cash Equivalenis at End of Year
See accompanying notes to Fnancial Statements.
Page 1 of 2 �
Proprletary Fund Types Totals
(Memorandum Only)
Internal
Enterprise Servlce 2001 2000
$ 97,291,922 97,291,922 85,104,451
28,907,080 28,907,080 27,852,555
(41,524,954) (15,979,801) (57,504,755) (48,52B,568)
(19,623,758) (7,242,105) (28,885,861) (27,290,377)
(17,392,437) (1,066,998) (18,459,435) (16,815,536)
802,811 147,540 950,351 669,473
19,553,588 4,765,716 24,319,302 20,792,000
16
2,239,486 1,180,567 3,420,053 319,259
(4,257,415) (4,895,000) (9,152,415) (3,619,359)
1,051,308 1,051,308 113,332
(85,010) (85,010) (108,027)
17,573,165 138,561 17,711,726 8,270,660
(9,955,199) (646,521) (10,601,720) (7,218,713)
6,566,335 (4,222,393) 2,343,942 (1,242,848)
(5,979,470) (493,358) (8,472,829) (6,082,309)
(3,162,180) (382,478) (3,544,659) (3,841,988)
(16,654,889) (4,307,311) (20,962,200) (15,471,073)
81,166 1,978,274 2,059,440 859,102
1,250,259 1,250,259 7,775,392
(118,656)
(104,387) (104,387) (311,976)
934,633 26,326 980,959
690,950 680,950 455,829
80,188 80,188 106,185
1,066,278 1,0B6,278 226,075
(21,797,454) (3,178,549) (24,978,003) (16,604,419)
67,625
(2,37Ba
8,543,324 2,651,212 9,194,536 5,597,237
6,543,324 2,651,212 8,194,536 5,662.484
10,865,791 15,988 10,881,777 8,607,217
42,338,513 24,395,136 86,734,849 58,127,43:
$ 53,205,304 24,411,122 77,616,426 66,734,648
$ 24,217 2,050 26,287 19,300
17,547,173 24,409,072 41,956,245 32,853,306
35,833,914 35,633,914 33,862,043
$ 53,205,304 24,411,122 77,616,426 66,734,649
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CITY OF CLEARWATER_ FLORIDA
COMBINED STATEMENT OF CASH FLOWS -
ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30. 2001 WITH COMPARATIVE TOTAL FIGURES FOR 2000
Fieconciliation of Operaling Income to Net
Cash Provided by Operadng Activities:
Operating Income
Adjustments to Reconcile Operating Income
to Net Cash Provided by Opera6ng Ac6vi6es:
Other Revenue from Nonoperating
Section of Income Statement
Depreciation
Non-cash land renlal expense
Provision for Uncollectible Accounfs
Capilalized Labor and Inlerest
Cor►struction in Progress Reclassified as Expense
Change in Assets and Liabilities:
(Increase) in Accounts Receivable
(Increase) Decrease in Amount Due from
Other Govemmental Entibes
(Increase) Decrease in Inventory
(Increase) in Prepaid Expenses
Increase (Decrease) in Accounts and Contracts Payable
Increase in Deposits
Increase in Deferred Revenue
(Increase) in Net Pension Asset
Increase (Decrease)in Accrued PayroA
Total Adjustmenls
Net Cash Provided by Operadng Activities
Noncash InvesGng, Capital and Fnancing ActiviGes:
Change in Fair Value of Invesiments
Contributed Utilities hom Developers
Contributed Land from Pinellas County Govemment
Land Contribution to General Fixed Assets Account Group
Contribution of Vehicle from General Fxed Asset Account Group
Contribution of Debt Relief from General Long Term Debt Account Group
See accompanying noles to Fnancial Statements.
1%
Page 2 of 2
Proprietary Fund Types Totals
(Memorandum Only)
Internel
Enterp►iss Service 2001 2000
$ 9,940,174 3,107,539 19,047,713 11,660,824
802,811 147,540 950,351 889,473
8,723,881 3,481,305 12,204,986 11,913,719
136.128 138,128
382,401 382,401 229,472
(sa3,�3o� (sas,�so� �a�o,�s�>
152,970 152,970
(928,047) (51) (928,098) (1,139,791)
(82,880) (82,980) 300,821
127,671 48,562 176,233 (51,995)
(158) (316.133) (316,291) (222,692)
515,362 (1,447,858) (932,298) 904,995
109,173 109,173 137,069
784,476 764,478
(658,298) (222,779) (881,077) (1,826,320)
111,952 (32,609) 79,343 (1,312,838)
9,813,412 1,858,177 11,271,589 9,131,176
3 19,553,586 4,765,718 24,319,302 20,792,000
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338,17:
922,90C
79,041 79,041
12,384 12.394
58,148 58,148
CITY OF CLEARWATER, FLORIDA
INDEX TO NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30. 2001
Note 1. Summary of Significant Accounting Policies .............................................................................2�
A. Reporting Entiry .........................................................................................................................20
B. Fund Accounting .......................................................................................................................20
GovernmentalFunds .................................................................................................................20
C.
D.
E.
F.
H.
I.
J.
K.
L.
M.
N.
P�oprietary Funds ...................................................................................................................... 21
FiduciaryFunds ......................................................................................................................... 22
AccountGroups ....................................................................................................................:....22
Pooled Cash and Investments ..................................................................................................23
Inventories................................................................................................................................. 24
General Fund Administrative Charges ......................................................................................25
Accrued Vacation and Sick Leave ............................................................................................ 25
Budgets and Budgetary Accounting .......................................................................................... 25
RiskManagement ...........................................:......................................................................... 26
Statements of Cash Flows ........................................................................................................ 27
Capitalization of Interest ............................................................................................................27
Application of FASB Pronouncements to Proprietary Funds ................................................... 27
ComparativeData ..................................................................................................................... 27
Combined Financial Information ............................................................................................... 27
Useof Estimates ....................................................................................................................... 27
Note 2. Long-Term Debt
A. Summary of Transactions in Long-Term Debt ......................................................................... 28
B. Summary of Debt Service Requirements ................................................................................. 28
C. Obligations Under Lease Purchase Agreements .....................................................................28
D. Long-Term Debt, General Government ....................................................................................28
E. Long-Term Debt, Proprietary Funds ......................................................................................... 29
F. Advance Refunding of Bonds ................................................................................................... 33
G. Long-Term Debt, Debt Service Funds ...................................................................................... 33
Note 3. Restricted Assets, Proprietary Funds
A. Water and Sewer Utility Fund ...................................................................................................34
B. Gas Utiliry Fund ......................................................................................................................... 34
C. Solid Waste Utiliry Fund ............................................................................................................34
D. Stormwater Utility Fund .............................................................................................................34
E. Parking System ......................................................................................................................... 35
F. Current Liabilities Payable from Restricted Assets ................................................................... 35
Note 4. Retirement Commitments
A. Defined Benefit Pension Plans ..............................................:.............................:.....................35
B. Police Supplemental Pension Fund ..........................................................................................39
C. Firefighters Supplemental Pension Fund ..................................................................................39
D. 401(a) Defined Contribution Plan .............................................................................................. 40
E. Deferred Compensation Plan ....................................................................................................40
F. Post Retirement Benefits ..........................................................................................................40
Note5. Fixed Assets ................................................................................................................................... 40
Note6. Property Taxes ............................................................................................................................... 41
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CITY OF CLEARWATER, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
Note 7. Segment Information for Enterprise Funds ................................................................................42
Note 8. Interfund Balanc:es .........................................................................................................................42
Note 9. Contingencies and Commitments ............................................................................................... 43
Note 10. Individual Fund Notes
A. Water and Sewer Utility Fund .........................................................................................:......... 45
Note 11. Fund Deficits and Expenditures in Excess of Appropriations .................................................45
Note 12. Residual Equity Transfers Between Funds ................................................................................45
Note 13. Contributed Capital - Proprietary Funds .....................................................................................45
Note14. Pending Litigation ..........................................................................................................................46
Note15. Conduit Debt .......................................................................................................................:...........46
Note16. Subsequent Events ........................................................................................................................46
Required Supplementary Information - Defined Benefit Pension Plans ...................................................47
19
CITY OF CLEARWATER, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
Note (1) Summary of Significant Accounting Policies
The accounting and reporting policies of the City of Clearwater, Florida, "the City", relating to the funds
included in the financial statements conform to generally accepted accounting principles for state and local
governments. The following represent the more significant accounting and reporting policies of the City:
Note (1 A) Reporting Entity
The City of Clearwater, Florida was incorporated in 1923 by Chapter 9710, Special Laws of Florida, as
amended. As required by generally accepted accounting principles, these financial statements present the
City of Clearwater (the primary government) and its component units. Component units are included in the
reporting entity due to the significance of their operational or financial relationships with the Ciry.
The City has adhered to the standards set forth in Statement No. 14 of the Governmental Accounting
Standards Board in reporting the primary government (including blended component units), discretely
presented component units, the reporting entity, and related organizations.
Blended Component Units - The Clearwater Redevelopment Agency (CRA), created by authoriry 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 have been incorporated into the City's comprehensive annual financial report.
Discretelv Presented Component Units - The Clearwater powntown Development Board (DDB) was created
by authoriry 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 Ciry ordinance and the Ciry is thereby
able to impose its will on the organization. Additionally the exclusion of the DDB's activities from the Citys
financial statements would, in the opinion of the Cit�s management, cause the financial statements to be
incomplete. Consequently, the DDB is reported in a separate column in the combined financial statements
as a discretely presented component unit of the financial reporting entity, in accordance with Statement No.
14 of the Governmental Accounting Standards Board. The DDB's financial statements have been
incorporated into the combined and individual fund sections of the Cit�s comprehensive annual financial
report. Separate financial statements for the DDB can be obtained from the City's Finance Department
located at 100 S. Myrtle Avenue, Clearwater, Florida.
Note (1 B) Fund Accounting
The accounts of the City are organized on the basis of funds and account groups, each of which is
considered to be a separate accounting entiry. The operations of each fund are accounted for by providing a
separate set of self-balancing accounts, which comprise its assets, liabilities, fund equiry, revenues and
expenditures, or expenses as appropriate. The various funds are grouped by generic type and three broad
fund categories in the financial statements. The types of funds maintained by the City are as follows:
Governmental Funds
The City accounts for those traditional governmental activities financed primarily from tax
revenues through the use of various governmental funds. The basic distinctions of governmental
funds are:
Measurement Focus: Governmental funds are accounted for on a spending or "financial flow"
measurement focus. Thus, only current assets and current liabilities are generally included on
their balance sheets. The reported fund balance representing net current assets reflects
"available spendable resources" at the balance sheet date. The operating statements of
governmental funds report the changes in net current assets (available spendable resources)
during a period of time, the increases consisting of revenues and other financing sources and the
decreases consisting of expenditures and other financing uses.
Accordingly, long-term debt and fixed assets are segregated from the accounts of these funds
and shown separately in the General Long-Term Debt and the General Fixed Assets Account
Groups.
Advances To Other Funds: Long-term advances receivable from other funds are reported on
the balance sheets of governmental funds even though they do not constitute current assets. In
order to exclude such assets from consideration as "available spendable resources", an
equivalent amount of fund balance is designated as reserved.
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CITY OF CLEARWATER, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
Encumbrances: Govemmental funds employ the use of encumbrance accounting wherein
purchase commitments are recorded as they are made in order to reserve that portion of the
appficable appropriations. Encumbrances remaining outstanding at year-end do not constitute
expenditures or liabilities. Fund balances are reserved in an amount equal to the total of
outstanding encumbrances. As described in Note 1(G), the budget comparisons of certain funds
are presented on the budgetary basis, which differs from generally accepted accounting
principles. In these presentations, encumbrances are treated as expenditures in the year when
the commitment is made rather than the year of liquidation.
Depreciation: Depreciation is not recorded for the use of fixed assets in govemmental funds.
Basls Of Accountina: Govemmental Funds and expendable trust funds use the modified
accrual basis of accounting, whereby expenditures, other than unmatured principal and interest
on general long-term debt, are recognized in the accounting period when the liabiliry is incurred, if
measurable, and revenues and other resources are recognized in the accounting period when
they become available and measurable. Revenues are considered to meet the availabiliry test if
they are collectible within the current period or soon enough thereafter for use in payment of
liabilities of the current period. Grant revenues to be received as reimbursement for expenditures
incurred in the current year are recognized as revenue. General Fund accrued revenues consist
primarily of utilities service taxes and franchise taxes.
Reserves and Desianations: Reserves represent that portion of fund balance committed by
;� legislative action or legal responsibility, which restricts the use of funds to a specific purpose.
Designations represent that portion of fund balance designated by City management for a specific
future use.
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The following are the City's governmental fund types:
General Fund: The General Fund is the general operating fund of the City. All financial
transactions and special assessments not properly accounted for in other funds are accounted for
in the General Fund.
�necial Revenue Funds: Special Revenue Funds are used to account for revenues derived
from specific sources. Such revenues are usually required by law or �egulation to be accounted
for separately and spent for particular purposes.
Debt Service Funds: Debt Service Funds are used to account for the accumulation of resources
for, and the payment of, interest and principal on the Citys General Long-Term Debt, which is not
the liability of Proprietary Funds.
Ca�ital Proiects Funds: Capital Projects Funds are used to account for the acquisition and
construction of capital facilities and other fixed assets.
� Proprietarv Funds:
Proprietary Funds are used to account for the City's organizations and activities that are similar to
those found in the private sector. The basic distinctions of proprietary funds are:
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Measurement Focus: Proprietary funds are accounted for on a cost of services or "capital
maintenance° measurement focus. Therefore, all assets and liabilities, regardless of whether
they are current or noncur�ent, are presented on the balance sheet. Fund equity, consisting of net
total assets, is segregated into contributed capftal and retained eamings segments. The
operating statements of these funds reflect revenues, expenses, and other sources and uses, to
account for changes in net total assets during the period.
21
CITY OF CLEARWATER, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
Basis of Accountina: Proprietary Funds use the full accrual basis of accounting. Revenues are
recognized in the period in which they are earned, and expenses are recognized in the period in
which the liabilities are incurred.
Valuation Of Fixed Assets: Property, plant, and equipment owned by Proprietary Funds is
stated at cost except for certain water and sanitary sewer lines of the Utility System which were
donated to the City by contractors and subdivision developers. These lines are stated at their
estimated cost to the contractors and developers, which should approximate fair value at the date
of donation. Depreciation is recorded over the estimated useful lives using the straight-line
method (see Note 5). Due to the immateriality of amortization of assets recorded under capital
leases, it is included in depreciation expense. When properry is disposed of, the related cost and
accumulated depreciation are removed from the accounts, with gains or losses on dispositions
being reflected as non-operating revenue or expense.
Reserves: Reserves represent that portion of retained earnings committed by legislative action
or legal responsibility, which restricts the use of funds to a specific purpose.
The following are the City's proprietary fund types:
Enternrise Funds: Enterprise Funds are used to finance and account for the acquisition,
operation, and maintenance of governmental facilities and services that are supported primarily by
user charges.
Internal Service Funds: Internal Senrice Funds are utilized to finance and account for services
and commodities furnished by a designated department to other departments within the Ciry or to
other governments on a cost-reimbursement basis.
Fiduciarv Funds:
Fiduciary funds are used to account for assets held on behalf of outside parties or on behalf of
other funds within the City. Either an expendable trust fund, a pension trust fund, or an agency
fund is used under such arrangements. Expendable trust funds are accounted for in substantially
the same manner as governmental funds with a"financial flov�i' measurement focus and the
modified accrual basis of accounting. Pension Trust Funds are accounted for equivalent to
proprietary funds with a"capital maintenance" measurement focus and employment of the
accrual basis of accounting. Agency Funds are not concerned with measurement of operating
results, being essentially concerned with a custodial responsibility; assets and liabilities are
measured on the modified accrual basis.
Reserves for Retirements have been established for the payment of future benefits. Reserves for
Retirements for defined contribution plans are equivalent to the net assets of the plan, and for
defined benefit plans they are equivalent to the net assets of the plan, not to exceed the actuarial
determined liabiliry of such plans.
AGCOUnt Groucs - General Fixed Assets and General Lona-Term Debt
General Fixed Assets Account Grouo: This account group accounts for all fixed assets of the
City's Governmental Funds. Assets purchased are recorded as expenditures in the General
Fund, Special Revenue Funds and Capital Projects Funds and are capitalized at cost in the
General Fixed Assets account group. Generally accepted accounting principles provide an option
whether infrastructure improvements such as streets, bridges and drainage systems are
capitalized in the General Fixed Assets account group. The City has elected to capitalize these
improvements. No interest capitalization or depreciation is recorded on General Fixed Assets.
Contributed assets are stated at estimated fair value on the date contributed, or in the case of
assets contributed by developers, at estimated cost to the developer which should approximate
fair value.
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CITY OF CLEARWATER, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
General Lona-Term Debt Account Groua: This account group accounts for Long-Term Debt
, and Compensated Absences, which are liabilities of Govemmental Funds, but not payable from
currently available expendable financial resources.
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Note (1C) Pooled Cash and Investments
The City utilizes a consolidated cash pool to account for cash and investments of all Cit�r funds other than
those which 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.
All individual fund cash equit�r 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 intertund 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 ovemight money market account which pays interest at .14% less than the daily federal
funds rate (2.75% at September 30, 2001), 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 cunent 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 Ciry 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 retum 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 Cit�s Investment Policy, a performance measure standard has been established. The
performance measure chosen is a weighted average of: the ovemight interest rate; and three month, six
month, one year, and three year Treasury rates respectively. For the fiscal year ended September 30, 2001,
the pertormance measure weighted average is 4.64%. The actual pooled cash eamings performance,
before bank charges, was 6.18%.
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 diffe�ent 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 which are listed on one or more of the recognized national stock exchanges.
Govemmental Accounting Standards Board (GASB) Statement Number 3 requires certain disclosures for
deposits and investments, including managemenYs 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 Cit�s name.
Category 2:
Category 3:
Collateralized with securities held by the pledging financial institution's trust department
or agent in the Citys name.
Uncollateralized.
23
CITY OF CLEARWATER, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
For investments other than deposits, the following categories apply:
Category 1: Insured or registered, or held by the City or its agent in the Cit�s name.
Category 2: Uninsured and unregistered, held by the counterparty's (purchasing agenYs) 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 Cit�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 managemenYs 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 guaranteed investment contracts 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, with the exception of certain employee retirement investments that are
being held by the financial institution also serving as investment manager, and certain escrowed debt service
investments that are being held by the financial institution from which they were purchased. The carrying
value for alf investments is fair value in accordance with GASB Statement 31.
Summary of deposits and investments, including managemenYs assessment of custodial credit risk, follows:
I. Cash On Hand and In Banks
II. Consolidated Cash Pool and Component
Unit Deposits and Investments:
U.S. Treasury Notes and Bills
U.S. Agency Securities
Money Market Account
Accrue[I Interest on Investments
Less Outstanding Checks at 9/30/01
Total Cash Pool and Component Unity Equity
III. Construction and Debt Service Deposits
and Investments:
U.S. Treasury Notes and Bills
IV. Employee Retirement Deposits and Investments:
Cash On Hand and In Banks
Money Market Accounts
Domestic Equiry Securities
U.S. Govemment Bonds
Domestic Corporate Bonds
Mortgage Backed Bonds
Asset Backed Bonds
Intemational Equiry Mutual Fund
Total Employee Retirement Investments
Total Deposits and Investments, All Funds
Fair
Value
$ 62,886
18,469,428
152,268,791
4,918,627
2,314,057
(3,404,845)
174,566,058
3,058,741
6,011,495
43,571,752
167,467,026
113,088,435
43,164,185
�2,�s�,sn
10,250,333
33,654,108
429,369,011
$ 607,056,696
Investment
Deposit Credit Credit
Risk Category Risk Category
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Note (1 D) Inventories
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 such as materials and supplies, 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).
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CITY OF CLEARWATER, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
Note (1 E) General Fund Administrative Charges
� The General Fund charges Proprietary Funds for their proportionate share of the costs of general
govemment operations. The amounts charged to these Proprietary Funds are based on relative net
expenditures (after deducting all intertund transactions).
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Note (1 F) Accrued Vacation Md Sick Leave
Full-time permanent employees eam a paid vacation period of two calendar weeks per year, increasing on a
graduated scale to a maximum vacation period of four calendar weeks each year after 16 years of service.
Generally, employees may accumulate unused vacation not exceeding 360 hours. Sick leave accumulation
ranges from approximately 7-10 hours each month. Generally employees may accumulate sick leave not
exceeding 1,560 hours. Upon retirement from City service a qual'rfied employee may be paid one-half of his
accumulated unused sick leave. It is the Cit�s policy in its Proprietary Funds to reflect on an accrual basis
the amounts of eamed but unused vacation leave and that portion of earned but unused sick leave estimated
to be payable upon retirement. The Citys reporting of accrued vacation and sick leave is in accordance with
Statement No. 16 of the Govemmental Accounting Standards Board.
Note (1 G) Budgets Md Budgetary Accounting
Annual budgets are legally adopted for the Cit�s General Fund, the Special Development Special Revenue
Fund, and the Community Redevelopment Agency Special Revenue Fund.
The City of Clearvvater observed the following procedures in establishing the budgetary data for the General
Fund and Special Development Fund, as reflected in the financial statements:
On May 31, 2000, the City Manager submitted to the Clearwater City Commission proposed budgets for the
fiscal year commencing October 1, 2000 and ending September 30, 2001. Public Hearings were held on
September 7, 2000 and September 21, 2000 at the Clearvvater Commission Chambers to obtain citizen
comments. On September 21, 2000 official budgets were legally adopted by Ordinance No. 6608-00.
Subsequent quarterly budget amendments were adopted on July 12, 2001 (Ordinance 6815-01). The final
amended budget was adopted October 4, 2001, (Ordinance 6844-01). 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 canceled 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 intertund 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 directo�s 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 Ciry Commission action
described above.
The annual budget for the Community Redevelopment Agency is adopted by the trustees of that agency in
� accordance with state law. The current year budget was officially adopted on September 18, 2000. The
budget is adopted on a basis consistent with GAAP, the level of budgetary contro► is the total fund, and
appropriations lapse at year-end.
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Budget amounts presented in the accompanying financial statements reflect all amendments adopted by the
25
CITY OF CLEARWATER, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
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 finro or more fiscal years. A comparison of annual results with these budgets would not be
meaningful and is therefore not included in this report. The excess of revenues and other sources over
expenditures and other uses for the Special Programs Fund and the Local Housing Assistance Trust Fund is
shown as a reconciling item near the bottom of the Combined Statement of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual.
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 powntown Development Board Fund, a discretely presented
component unit of the City, is adopted by the members of that board in accordance with state law. The
current year budget was officially adopted on September 13, 2000.
Note (1 H) Risk Management
The City is self-insured within certain parameters for losses arising from claims for general liabiliry, auto
liability, police professional liability, public official's liability, property damage, and workers' compensation.
Insurance coverage has been maintained by the City to pay for or indemnify the City for losses in excess of
certain specific retentions and up to specified maximum limits in the case of claims for liability, property
damage, and workers' compensation. The liability excess coverage is $10,000,000 per occurrence (no
aggregate applicable) with self-insured retention of $500,000 via two layers of $5,000,000 each with the
second layer of $5,000,000 in excess of the first layer of $5,000,000. The workers' compensation excess
coverage is statutory with $500,000 self-insured retention per occurrence, and the property damage excess
coverage is $100,000,000 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, 2001 is based on the requirements of Governmental
Accounting Standards Board Statement No. 10, which requires that a liability for claims be reported if
information prior to the issuance of the financial statements indicates that it is probable that a liability has
been incurred at the date of the financial statements and the amount of the loss can be reasonably
estimated.
Changes in the claims liability amounts in fiscal years 2000 and 2001 were:
Balance at October 1, 1999
Current year claims and changes
in estimates
Claim payments
Balance at September 30, 2000
Current year claims and changes
in estimates
Claim payments
Balance at September 30, 2001
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Self
Insurance
$ 10,217,997
2,810,923
(2,145,527)
10,883,393
629,391
(2,175,488)
$ 9,337,296
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CITY OF CLEARWATER, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
� During fiscal year 1988-89, the City Commission authorized the establishment of a special health insurance
stabilization fund to guard against future substantial increases in health care costs. The current accumulated
balance in this fund is $3,536,007, which represents refunds from insurance carriers and departmental
billings during the current and ten immediately preceding fiscal years in excess of insurance premium
� expense actually incurred during those ten years. This fund is a component of the unreserved retained
earnings balance of the Central Insurance Fund at September 30, 2001. The City is not currently self-insured
with respect to major medical coverage.
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Note (11) Statements of Cash Flows
For purposes of the statements of cash flows, investments with original maturities of three months or less are
considered to meet the definition of cash equivalents. The majority of the investments in which the City's
proprietary funds have equity are held by the Citys consolidated pool of cash and investments. Since fund
equities in this cash management pool have the general characteristics of demand deposits in that additional
funds may be deposited at any time and also funds may be withdrawn at any time without prior notice or
penalty, each fund's equity account is considered a cash equivalent regardless of the maturities of
investments held by the pool. Funds which have deficit (overdraft) positions within the consolidated pool
report the deficits as intertund payables to the Citys Capital Improvement Fund, as explained in Note 1(C).
Note (1 J) Capitalization of Interest
In compliance with the requirements of Financial Accounting Standards Board Statement No. 62, it is the
policy of the City to capitalize all interest costs of tax exempt borrowings, the proceeds of which are externally
restricted to the financing of the acquisition of specified qualifying assets, less any interest earned on the
temporary investment of the proceeds of such bonowings until the specified qualifying assets acquired with
the borrowings are ready for their intended use. For other projects, the City follows the provisions of
Financial Accounting Standards Board Stateme�t No. 34 and capitalizes interest costs incurred during the
construction period. This policy is applicable to the proprietary funds; it is not applied to general fixed assets.
During the fiscal year, $6,355,706 of interest cost was incurred in the proprietary fund rypes. Interest
capitalized, net of eamings on related investments was ($68,925).
Note (1 K) Application of FASB Pronouncements to Proprietary Funds
� The Ciry has elected to implement the provisions of GASB Statement 20 with regard to the application of
FASB Pronouncements for proprietary funds. In accordance with the provisions of GASB Statement 20, the
City has elected to not apply those FASB statements and interpretations issued after November 30, 1989.
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Note (1 L) Comparative Data
Wherever possible, the accompanying financial statements include comparative total data for the prior year in
order to provide a better understanding of changes in the City's overall financial position and results of
operations. Certain prior yea� balances have been reclass'rfied to conform to current year presentations.
� Note (1 M) Combined Financial Information
The total columns included in the combined financial statements which are captioned "Memorandum Only"
represent a summation of the amounts presented in the columns by fund type and account group. Such
totals do not eliminate interfund transactions, and are included for informational purposes only. They are not
� intended to present financial position, results of operations, or cash flows for the govemmental unit as a
whole, in conformance with generally accepted accounting principles.
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Note (1 N) 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 repo�ted in the financial
statements and accompanying notes. Actual results could differ from the estimates.
27
CITY OF CLEARWATER, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
Note (2) Long-Term Debt
Note (2A) Summary of Transactions in Long-Term Debt
Not�,
Nbrtgages,
Loan Pool Accn�ed
Revenue AereemeMs Compensated
General Long-Tertn Debt AccouM Group Bonds & Contracts Abse� Total
Debt Payable at October 1, 2000 $ 10,264,210 $ 3,393,243 $ 5,149,725 $ 18 807178
New Debt Issued:
Revenue Borxis Issued 46,445�000 46,445,000
Lease PurChase C:orrtraCts tor
Equipment Acquisition z�454�264 Z�454�264
Transters trom Proprietary Fund ��» ����
Net Change in Nccrued Compensated Absences 301,834 301,834
Debt Retired (227�222) (1 �241 �085) ��,����
Debt Payable at September 30, 2001 56,481,988 4,664,570 5,451,559 66,598,117
Note (2B) Summary of Debt Service Requirements (all outstanding indebtedness as of
September 30, 2001, including interest payments of $78,371,388)
Notes,
Mortgages,
Loan Pool
Year Ending Revenue Agreements
Sept. 30 Bonds & Contracts Total
2002 $ 11,752,027 $ 4,717,356 $ 16,469,383
2003 16,743,744 3,852,254 20,595,998
2004 16,707,988 3,210,395 19,918,383
2005 16,493,670 2,295,420 18,789,090
2006 16,393,053 1,204,879 17,597,932
Thereafter 173,999,780 43,887 174,043,667
$ 252,090,262 $ 15,324,191 $ 267,414,453
Notes (2C) Obligations Under Lease Purchase Agreements
Future minimum lease payments under lease purchase agreements are as follows:
Year Endinq Sept. 30 Amount
2002
2003
2004
2005
2006
2007
Deduction of the Amount of Imputed Interest Necessary to
Reduce Net Minimum Lease Payments to Present Value
$ 4,717,356
3,852,254
3,210,395
2,295,420
1,204,879
43,887
$ 15,324,191
(1,331,007)
$ 13,993,184
Obligations under capital leases are included as a component of the balance under the caption "Mortgages,
Notes, Loan Pool Agreements and Acquisition Contracts Payable" on the City's Combined Balance Sheet.
Note (2D) Long-Term Debt, General Government
Accrued Comqensated Absences
Long-term portions of accrued vacation and sick pay for governmental funds, as
required by GASB Statement No. 16.
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$ 5.451.559 '
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CITY OF CLEARWATER, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
Serial Bonds Pavable
Improvement Revenue Bonds, Series 1995, with serial maturities from $190,000 at
5.10% due February 1, 2002 to $590,000 at 6.00% due February 1, 2021. The bonds
have term maturities of $1,565,000 at 5.88% due February 1, 2020 and $2,750,000 at
6.00% due February 1, 2025. Principal and interest payable from Public Service Tax
revenues.
Infrastructure Sales Tax Revenue Bonds, Series 2001, with serial maturities from
$5,100,000 at 4% due December 1, 2002 to $6,620,000 at 4% due December 1, 2009.
Principal and interest are payable from "Penny for Pinellas" one-cent discretionary
infrastructure sales surtax.
Total Serial Bonds Payable
Term Bonds Pavable
Public Service Tax and Bridge Revenue Bonds, Series 1985, maturing December 1,
2005 with interest at 9.13%. This amount represents 64.33% of the total undefeased
term bonds outstanding for this issue. The remaining 35.67% of the undefeased tenn
bonds is reported in the Parking System Enterprise Fund, in the amount of $142,249.
After partial defeasance on September 27, 1995, a total of $550,000 in outstanding term
bonds mature on December 1, 2005, with $415,000 remaining undefeased as of
September 30, 2001.
5,455,000
46.445.000
51,900.000
266,988
Improvement Revenue Bonds, Series 1995, with term maturities of $1,565,000 at
� 5.88% due February 1, 2020 and $2,750,000 at 6.00% due February 1, 2025. The
bonds have serial maturities from $180,000 at 5.05% due February 1, 2001, to
$590,000 at 6.00% due February 1, 2021. 4,315.000
�I
�
r
r
Total Term Bonds Payable
Lease-Purchase Pavable
4.581.988
Pursuant to certain Master Lease Agreements, the Ciry has entered into Lease
Purchase Agreements for the purchase of automotive and other types of equipment for
the operating departments of the General Fund. These agreements provide for 20
quarterly payments ranging in amount from $692 to $97,983. The cost of the equipment
at the inception of the leases was $8,112,954 with interest imputed thereon of $900,356;
the effective rates ranging from 3.30% to 5.90%. 4.664.570
Total General Government Long-Tertn Debt Payable
Note (2E) Long-Term Debt, Proprietary Funds
� Water and Sewer Utilitv Fund
Water and Sewer Refunding Bonds, Series 1993; 4.80% - 5.63%. Current Interest
Bonds with serial maturities due in annual principal installments ranging from $140,000
� to $5,715,000 from December 1, 2001 to December 1, 2018; interest is payable
semiannually, net of unamortized discount of $39,241, collateralized by net revenues of
the Water and Water Pollution Control System.
�
�
�
Water and Sewer Revenue Bonds, Series 1998; Capital Appreciation Bonds with an
approximate yield to maturity ranging from 4.20% - 5.22% and having serial maturities
due in annual installments (original principal amount plus interest eamed to date of
maturity) ranging from $460,000 to $5,875,000 from December 1, 2004 to December 1,
2018; interest is payable at maturity (or prior redemption date) on Capital Appreciation
Bonds; net of unamortized discount of $274,945 and uneamed interest included in the
maturity amount outstanding at September 30, 2001 of $31,884,999 collateralized by
net revenues of the Water System.
29
66.598.117
24,560,759
49,625,056
CITY OF CLEARWATER, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
Pursuant to certain Master Lease Agreements, the City has entered into Lease Purchase
Agreements for the purchase of automotive equipment for the operating divisions of the
Water and Sewer Utility Fund, providing for 20 quarterly payments ranging from $693 to
$6,150. The cost of the automotive equipment at the inception of the lease was
$252,634 with interest imputed thereon of $31,933, with effective rates ranging from
3.30% to 5.62%.
Total Long-Term Debt, Water and Sewer Utility Fund
Less Current Portion of Long-Term Debt
Long-Term Debt, Excluding Current Portion
Cash has been restricted and reserves established in the Water and Sewer Revenue
Bonds Debt Service Fund pursuant to the ordinances authorizing the two outstanding
series of Water and Sewer Revenue Bonds. Amounts restricted are in compliance with
the ordinances.
Gas Utilitv Fund
Gas System Revenue Bonds, Series 1996A; 4.80% — 5.75% Serial Bonds due in annual
principat installments ranging from $85,000 to $270,000 from September 1, 2002 to
September 1, 2014. 5.75% Term Bonds in the principal amount of $905,000 maturing
on September 1, 2017; 5.75% Term Bonds in the principal amount of $1,460,000
maturing on September 1, 2021; and 5.80% Term Bonds in the principal amount of
$4,465,000 maturing on September 1, 2026. Interest is payable semiannually. Long
term debt is net of unamortized discount of $121,209. The revenue bonds are
collateralized by net revenues of the Gas Division.
Gas System Revenue Bonds, Series 1997A & B; 4.00% - 5.00% Serial Bonds due in
annual principal installments ranging from $490,000 to $785,000 from September 1,
2002 to September 1, 2013. Also includes 5.25% Term Bonds in the principal amount
of $790,000 maturing on September 1, 2017, and 5.30% Term Bonds in the principal
amount of $4,560,000 maturing on September 1, 2027. Interest is payable
semiannually. Long term debt is net of unamortized discount of $153,301. The revenue
bonds are collateralized by net revenues of the Gas Division.
Gas System Revenue Bonds, Series 1998; 3.90% - 4.60% Serial Bonds due in annual
principal amounts ranging from $35,000 to $50,000 from September 1, 2002 to
September 1, 2013; and 4.75% - 4.90% Serial Bonds due in annual principal
installments ranging from $620,000 to $755,000 from September 1, 2015 to September
1, 2019; 4.70% Term Bonds in the principal amount of $645,000 maturing on
September 1, 2014; and 5.00% Term Bonds in the principal amount of $3,410,000
maturing on September 1, 2023. Interest is payable semiannually. Long term debt
amount is net of unamortized discount of $144,261. The revenue bonds are
collateralized by the net revenues of the Gas Division.
Total Long-Term Debt, Gas Utility Fund
Less Current Portion of Long-Term Debt
Long-Term Debt, Excluding Current Portion
Cash has been restricted and reserves established in the Gas System Revenue
Bonds Debt Service Funds pursuant to the ordinance authorizing the three
outstanding issues of Gas System Revenue Bonds. Amounts restricted are in
compliance with the ordinance.
30
,
'
'
201.652 '
74,387,467
5 210 825 �
69,176.642
r
�
�
r
8,323,791 �
r
12,711,699 '
�
�
7,785.739 �
28,821,229
610 000 �
28.211.229
�
'
�
I�J
�
�
�
�
�
�
�
CITY OF CLEARWATER, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
Solid Waste Utilitv Fund
An internal twenry year loan from the City's Central Insurance 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.
Pursuant to certain Master Lease Agreements, the Ciry has entered into Lease
Purchase Agreements for the purchase of equipment for the operating division of the
Solid Waste Utility Fund. The agreements provide for 20 quarterly payments of $4,667
to $5,445. The combined total principal amount of the loan at inception of the leases
was $270,800 with interest imputed thereon of $39,278, with effective interest rates
ranging from 5.03% to 6.41 %.
Total Long-Term Debt, Solid Waste Utility Fund
Less Current Portion of Long-Term Debt
Long-Term Debt, Excluding Current Portion
Stormwater Utilitv Fund
� Stormwater System Revenue Bonds, Series 1999; 4.00% - 5J5%. Current Interest
Bonds with serial maturities due in annual principal installments ranging from $120,000
to $490,000 from November 1, 2001 to November 1, 2029. Interest is payable
� semiannually, amount is net of unamortized discount and issue costs of $77,733; and the
issue is collateralized by net revenues of the Stormwater Utility System.
r
�
�
'
Pursuant to certain Master Lease agreements, the Ciry has entered into Lease Purchase
Agreements for the purchase of maintenance equipment for the operating division of the
Stormwater Utiliry fund, providing for 20 quarterly payments ranging from $693 to
$11,107. The cost of the maintenance equipment at the inception of the lease was
$762,957, with interest imputed thereon of $92,884, and effective rates ranging from
3.30% to 5.62%.
Total Long-Term Debt, Stormwater Utility Fund
Less Current Portion of Long-Term Debt
Long-Term Debt, Excluding Current Portion
Yacht Basin and Marina
An internal five-year construction loan in the amount of $298,011 from the Cit�s Central
� Insurance 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.
�
r
'
�
Pursuant to certain Master Lease Agreements, the City has entered into a Lease
Purchase Agreement for the purchase of equipment for the operating division of the
Yacht Basin and Marina Enterprise Fund. The agreement provides for 20 quarterly
payments of $1,929. The cost of the equipment at the inception of the lease was $33,825
with interest imputed thereon of $4,749, with an effective rate of 5.65%.
Total Long-Term Debt, Yacht Basin and Marina Fund
Less Current Portion of Long-Term Debt
Long-Term Debt, Excluding Current Portion
31
989,685
123.492
1,113,177
119 769
993.408
7,317,267
607.558
7,924,825
258 715
7,666.110
245,214
1.902
247,116
57 901
189.215
CITY OF CLEARWATER, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
Parkin4 Svstem
Public Service Tax and Bridge Revenue Bonds, Series 1985, maturing December 1,
2005 with interest at 9.13%, net of discount and issue costs (Parking Fund share only)
of $5,762. This amount represents 35.67% of the undefeased term bonds outstanding.
The remaining 64.33% of the undefeased term bonds is reported in the General Long
Term Debt Group, in the amount of $266,988. After partial defeasance on September
27, 1995, a total of $550,000 in outstanding term bonds mature on December 1, 2005,
with $415,000 remaining undefeased as of September 30, 2001.
Pursuant to certain Master Lease Agreements, the City has entered into a Lease
Purchase Agreement for the purchase of equipment for the operating divisions of the
Parking Fund. The agreement provides for 20 quarterly payments of $43,628. The
cost of the equipment at the inception of the lease was $780,818 with interest
imputed thereon of $91,751, with an effective rate of 4.33%.
Total Long Term Debt, Parking System Fund
Less Current Portion of Long-Term Debt
Long-Term Debt, Excluding Current Portion
Cash has been restricted and reserves established pursuant to the ordinances
authorizing the Public Service Tax and Bridge Revenue Bonds. Amounts restricted are
in compliance with the ordinances.
��
�]
�
�
142,249 �
�
710.081
852,330 �
(171,697)
680.633 �
'
Garaae
Pursuant to certain Master Lease Agreements, the City has entered into Lease
Purchase Agreements for the purchase of automotive and other types of equipment for
the operating divisions of the City. These agreements provide for 20 quarterly payments
ranging in amount from $7,766 to $79,218. The cost of the equipment at the inception
of the leases was $11,548,903 with interest imputed thereon of $1,475,929, the effective
rates ranging from 2.95% to 5.90%. 6,924,234
Less Current Portion of Long-Term Debt
Long-Term Debt, Excluding Current Portion
Administrative Services
Pursuant to certain Master Lease Agreements, the City has entered into Lease
Purchase Agreements for the purchase of automotive and other types of equipment for
the operating divisions of the Administrative Services Fund. These agreements provide
for either 12 or 20 quarterly payments ranging in amount from $776 to $19,645. The
cost of the equipment at the inception of the leases was $1,593,594 with interest
imputed thereon of $211,446, the effective rates ranging from 2.95% to 5.90%.
An internal five-year loan from the Cit�s Central Insurance 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 on September 30, 2000.
Total Long Term Debt, Administrative Services Fund
Less Current Portion of Long-Term Debt
Long-Term Debt, Excluding Current Portion
TOTAL PROPRIETARY FUNDS LONG-TERM DEBT,
EXCLUDING CURRENT PORTION
TOTAL LONG-TERM DEBT, ALL FUNDS EXCLUDING
CURRENT PORTION FOR PROPRIETARY FUNDS
32
2 217 794
4.706.440
'
'
�
�
�
759,695 �
871.070 '
1,630,765
(566.287) '
1,064.478
112.688.155 '
$179.286,272 �
CITY OF CLEARWATER, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
The official statements and Commission resolutions authorizing the issuance of the revenue bonds described
above contain certain restrictive covenants. The City has covenanted that, on a monthly basis, it will deposit
specified amounts derived from spec'rfic revenue sources into accounts and funds established by the
resolutions. The deposits into these accounts and funds are used to repay principal and interest coming due
on the bonds and to provide sinking funds established for the purpose of retiring term bonds due in future
years. Certain covenants also require maintenance of specffied coverage ratios. The City is in compliance
with all bond covenants.
Note (2F) 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 Govemment and related agencies at various interest rates and
maturities sufficient to meet all debt service requirements of the refunded debt, of which $60,900,000 was
outstanding at September 30, 2001. 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.
Bond issues, which have been refunded and are payable from escrow accounts are:
Utiliry 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
Public Service Tax and Bridge Revenue Bonds, Series 1985
Community Redevelopment Agency Bonds, Series 1986
Water and Sewer Revenue Bonds, Series 1988A
Water and Sewer Revenue Bonds, Series 19886
Gas System Revenue Bonds 1991A
Gas System Revenue Bonds 1994A
$ 1,800,000
1,390,000
2,380,000
50,000.
14,240,000
975,000
1,190,000
19,910,000
4,995,000
5,860,000
8,110,000
$ 60,900,000
Note (2G) Long-Term Debt, Debt Service Funds
Debt Service Reserves - General Lona-Term Debt
The reserves have been established in compliance with the ordinances authorizing the debt and are equal to
the amounts required by the ordinances.
Reserves established to provide for the next succeeding maturities of principal and interest are as follows:
Princinal Interest
Improvement Revenue Bonds, Series 1995 $ 126,667 $ 93,991
Public Senrice Tax and Bridge Revenue Bonds,
Series1985
Infrastructure Sales Tax Revenue Bonds,
Series 2001
41,189 8,121
551.024
$ 167.85 - -�-�-
A contingency reserve has been established pursuant to the authorizing bond ordinance to meet principal
and interest requirements for the Public Service Tax and Bridge Revenue Bonds should other resources be
unavailable. The General Long-Term Debt portion of this reserve is $71,535 as of September 30, 2001.
33
CITY OF CLEARWATER, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
Note (3) Restricted Assets, Proprietary Funds
Note (3A) 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, 2001 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, 2001 are:
Equiry in Pooled Cash and Investments
Due from Other Funds
Assets of the Water and Sewer Utiliry Fund restricted under the provisions of the
ordinances authorizing the issuance of Water and Sewer Revenue Bonds consisted of
the following at September 30, 2001:
Water and Sewer Revenue Bonds Debt Service:
Equity in Pooled Cash and Investments
Investments (U.S. Government Securities)
Accrued Interest Receivable on Investments
$1,091,317
362,641
3,596,068
458,229
11,158,705
3,058,741
86,196
Water and Sewer Revenue Bonds Renewals and Reolacements:
Equity in Pooled Cash and Investments 9,426,487
Due from Other Funds �•328•64�
$30.�67.025
Assets of the Water and Sewer Utility Fund representing Customers' Deposits and therefore restricted,
amounted to $1,868,428 at September 30, 2001, consisting entirely of Equity in Pooled Cash and
Investments.
Note (3B) 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, 2001:
Gas Svstem Revenue Bonds
Debt Service:
Equity in Pooled Cash and Investments
Renewals and Replacements:
Equity in Pooled Cash and Investments
$175,581
300,000
475•581
Assets of the Gas Utiliry Fund representing Customers' Deposits and therefore restricted, amounted to
$1,110,172 at September 30, 2001, consisting entirely of Equity in Pooled Cash and Investments.
Note (3C) Solid Waste Utility Fund
Restricted assets in the Solid Waste Utility Fund designated for construction represent customer deposits in
the amount of $707,799 at September 30, 2001, and consisted entirely of Equity in Pooled Cash and
Investments.
Note (3D) Stormwater Utility Fund
Reimbursement due for land acquisition costs from the U.S. Department of Housing and
Urban Development pursuant to a FY 2000 Economic Development Initiative Special
Project Grant for Clearwater Town Pond; assets remaining at September 30, 2001 are:
Due from Other Governmental Entities
34
$ 455,000
�
CITY OF CLEARWATER, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
Assets in the Stormwater Utility Fund restricted under the provisions of the ordinance
for the issuance of revenue bonds consisted of the following at September 30, 2001:
Stormwater Svstem Revenue Bonds
Debt Service: Equity in Pooled Cash and Investments
Construction: Equity in Pooled Cash and Investments
275,622
5.858.885
6•589•507
Note (3E) Parking System
Assets in the Parking System restricted under the provisions of the ordinance authorizing the issuance of the
Public Senrice Tax and Bridge Revenue Bonds, consists of Equity in Pooled Cash and Investments in the
amount of $64,850 as of September 30, 2001.
Note (3F) Current Llabilities Payable from Restricted Assets
As of September 30, 2001, with comparative figures for 2000, the current liabilities payable from restricted
assets of the Enterprise Funds were as follows:
Construction Contracts Payable
Accrued Interest Payable
Current Portion of Long-Term Debt (Revenue Bonds)
Customer Deposits
Note (4) Retirement Commitments
September 30, 2001 September 30, 2000
$ 1,846,467 $ 116,883
�aa,ssa �so,na
4,496,310 4,272,314
3,686,399 3,576,707
$ 10,773,540 $ 8,756,678
Note (4A) Defined Benefit Pension Plans
The City contributes to the following two 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
firemen employed prior to July 1, 1963, and certain nonclassified (primarily managerial) employees. The
Firemen's Relief and Pension Plan covers all firemen hired prior to July 1, 1963, who otherwise met eligibility
requirements and is closed to new entrants. Neithe� of these plans issues a stand-alone financial report.
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 Clearvvater. Plan provisions have been duly approved as required
by the voters in referendums, the most recent of which was held on March 14, 2000. The plan provisions
were changed effective January 1, 2000 to provide a 1.5% cost of living increase, an additional normal
retirement age of 65 with 10 years of service, plus additional eligibilities and benefits for police and
firefighters. The normal retirement benefit is a monthly benefit equal to 2-3/4% of average monthly
compensation for the final 5 years of service muftiplied by the number of years of service to date ot
retirement. The minimum benefit under the plan is $300 per month. Eligibility for normal retirement occurs
upon completion of at least 20 years of service and the attainment of age 55 or completion of 30 years ot
service for employees engaged in non-hazardous duty, or 10 years of service and age 65. For those
engaged in hazardous duty, eligibility occurs upon completion of 20 years of service. The normal monthiy
benefits are payable for the life of the participant and continue, after the participanYs death, to be paid at the
same amount for 5 years to eligible surviving beneficiaries; after 5 years, the survivor annuity is reduced to
50% of the original amount. The plan provides for an annual cost of living increase of up to 1-1/2%. The plan
also provides for disability and death benefits, vesting after completion of 10 years of service and the refund
of employee contributions in case of a non-vested termination. There are seven other options which are
computed to be the actuarial equivalent of the normal benefit (life annuity; ten year certain and life annuity;
50% joint and survivor annuit�r; 75% joint and survivor annuity; and 100% joint and survivor annuity).
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.
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
35
CITY OF CLEARWATER, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
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 participanYs 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 is 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 assuming assessed values of taxable property equal to the values of January 1, 1972.
As of the date of the most recent actuarial valuations, January 1, 2001, the current membership of the
plans is as follows:
� ' I' f
Retirees and Beneficiaries Currently Receiving Benefits
Terminated Employees Entitled to Ber�efits
But Not Yet Receiving Them
Active Employees:
Fully Vested
Nonvested
Total Number of Participants
Employees
Pension Fund
533
40
711
827
�
Firemen s Re ie
and Pension Fund
48
�
For the fiscal year ended September 30, 2001, the covered payroll for the Employees' Pension Fund is
$65,532,441. The City's total payroll for the same period is $69,209,284. Annual pension cost and
contributions information for the last three fiscal years follows:
Emplovees' Pension Fund
Year Annual (a)
Ended Required
Sept 30 Gontrlb�tion
1999 $ 840,558
2000 $ �
2001 $ 174,377
Employer (b) Percent
Contributions rontributed
$ 3,904,950 465%
$ 4,419,723 N/A
$ 4,255,484 244096 (c)
(a) The actuarially determined contribution requirements for the City's fiscal year ended September 30,
2001, are based on actuarial valuations as of January 1, 2000. Since the City's contributions are made
during its fiscal year (which commences nine months after the date of the actuarial valuation), the Ciry,
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) In some fiscal years the actual contribution may be less than the annual required contribution due to
legally required contributions made in excess of actuarially required contributions for years prior to 1996,
resulting in a net pension asset in the plan. The net pension asset balance as of September 30, 2001
totaled $15,845,929.
�
�
�
�
�
�
�
,
�
�
�
�
1
CITY OF CLEARWATER, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
(c) Actual contributions for fiscal 2001 totaled $4,255,484, as required by City pension ordinance. See
footnote 4A.
Year
Ended
Sept 30
1999
2000
2001
Firemen's Relief Pension Fund
Annual (a)
Required
Contribution
$ 1,003,758
$ 1,046,856
$ 1,098,990
Employer Percent
Contributions Contributed
$ 1,003,758 100%
$ 1,046,856 100%
$ 1,098,990 100%
a) The actuarially determined contribution requirements for the Cit�s fiscal year ended September 30,
2001, are based on actuarial valuations as of January 1, 2000. Since the Cit�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.
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 Govemmental Employees". The amount of the pension
asset at transition was $3,503,365.
The Employees' Pension Fund net pension asset at September 30, 2001 totaled $15,845,929. It was
comprised of the fol�owing components:
Annual required contributions (ARC)
Interest on the net pension obligation
Adjustment to annual contribution
Annual pension cost
Fiscal 2001 Employer Contributions
Increase (decrease) in net pension obligation
Net pension obligation beginning of year
Net Pension obligation end of year
$ 174,377
(870,965)
1,548.497
851,909
4.255.484
3,403,575
12.442.354
�15.845.929
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, 2001, neither the Employees' Pension Fund nor the Firemen's Relief and Pension fund
held investments (other than U.S. Govemment or U.S. Govemment guaranteed obligations) in any one
organization comprising 5% or more of the net assets available for benefits. As of September 30, 2001,
� neither pension fund had investment type or similar relationships with any related party, including officers and
employees of the Pension Plan, the sponsoring Ciry of Clearvvater, and organizations included in the
reporting entity.
' Significant actuarial assumptions utilized in the actuarial valuations as of January 1, 2000, are as follows:
Emplovees' Pension Plan
(1) Assumed rate of retum on investments of 7% per annum.
(2) Projected salary increase at a rate of 5% per year, including both cost-of-living adjustments of 3%
' and merit or seniority increases at 2%.
(3) Mortality based on the 1983 Group Mnuity Mortality Table for Males with female ages set back 6
'
�
years.
(4) Pre-retirement withdrawals assumed to occur per standard scales of moderate tumover rates
(Scale 255) for males and heavy tumover rates (Scale 355) for females.
(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.
37
CITY OF CLEARWATER, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
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%.
(3) Mortality based on the 1983 Group Annuity Mortality Table for both active and retired participant;
assumed disabled participants will experience mortaliry 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.
(6) Assumed value of one mill of ad valorem tax will increase at rate of 5% per year.
As a result of a voter referendum on March 14, 2000, the Employees Pension Plan was modified to provide
for a 1.5% cost of living increase, an additional retirement age of 65 with 10 years of service, plus additional
eligibility and benefits for police and firefighters effective January 1, 2000.
The Firemen's Relief and Pension Fund had changes in actuarial assumptions affecting the January 1, 1999
valuation. An investment yield of 5.5% was assumed whereas the prior valuation assumed 6.5%.
Additionally, benefit increases of 2.0% were assumed while the previous assumption was 4.0%.
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. 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 cost method.
The actuarially determined contribution requirements for the City's fiscal year ended September 30, 2001, are
based on actuarial valuations as of January 1, 2000. Since the Cit�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.
The net pension asset for the Employees' Pension Plan, representing excess contributions as calculated per
GASB 27 requirements, is identical in amount to the plan "credit balance" as disclosed in prior years. A total
of $10,936,615 of the current net pension asset balance is attributable to governmental funds and therefore
is not reflected in the financial statements in accordance with the modified accrual basis of accounting. The
remaining $4,909,314 attributable to proprietary funds is reflected in the financial statements on the accrual
basis of accounting.
Governmental Accounting Standards Board Statement Nos. 25 and 27 require the presentation, as
supplementary information, of certain 6-year historical trend information, These disclosures are presented on
pages 47-48 of the Cit�s Comprehensive Annual Financial Report.
38
CITY OF CLEARWATER, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
Note (4B) 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 Ciry. 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 $658,179 in the year ended
Septernber 30, 2001, 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 4.7% of current year covered payroll. The fair
value of investments at September 30, 2001 totaled $9,940,614.
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 entftled 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 Ciry 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 hi�e, 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.
For the fiscal year ended September 30, 2001, the payroll of the covered officers' was $14,038,693; the City's
total payroll for the same period was $69,209,284. During this period, amendments were made to the
Investment Policy Statement intended only to complement the objectives and guidelines. These
amendments were adopted as required by Senate Bill 372 to the Florida Statutes. As of September 30,
2001, the pension fund had no investrnent type or similar relationships with any related party including
officers and employees of the Pension Plan, the sponsoring Ciry of Clearvvater, and organizations included in
the reporting entity.
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 liabiliry on the part of either the State or the City.
Note (4C) 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 $541,465 in the year ended September 30, 2001, 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 6.34% of current year covered payroll. The fair value of investments at
September 30, 2001 totaled $9,464,049.
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 eamings 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 investments of the Fund are managed by the Salem Trust Company.
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.
39
CITY OF CLEARWATER, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
For the fiscal year ended September 30, 2001, the covered payroll was $8,545,939 the City's total payroll for
the same period was $69,209,284. As of September 30, 2001, the pension fund had no investment type or
similar relationships with any related party, including officers and employees of the Pension Plan, the
sponsoring City of Clearwater, and organizations included in the reporting entity.
Note (4D) 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 Ciry Manager and the City Attorney;
12% of compensation on behalf of the Chief of Police; and 6% 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 choice of investing in the Family of Funds, Model Portfolio Funds, or
Mutual Funds Series.
The City's total payroll for the fiscal year ended September 30, 2001, was $69,209,284. The Plan members'
payroll for the same period totaled $3,934,142. The Cit�s contribution, using the above referenced formula,
totaled $249,556. The assets of the trust, at market value, totaled $1,117,636 at September 30, 2001.
Note (4E) 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 Citys general creditors.
The City has previously reported the assets and associated liabilities of the deferred compensation plan in
the Cit�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.
Note (4F) Post Retirement Benefits
The City provides no material post retirement benefits to retired employees or to their beneficiaries other than
those described in preceding Notes (4A) through (4D).
Note (5) Fixed Assets
General Fixed Assets:
A summary of changes in General Fixed Assets follows:
Balance Balance
October 1. 2000 Additions Deletions Se�t 30. 2001
Land $ 30,683,827 $ 4,913,704 $ 2,000 $ 35,595,531
Buildings 38,085,326 4,215,478 504,542 41,796,262
Improvements 83,120,396 5,009,053 619,087 87,510,362
Equipment 36,859,725 4,514,804 549,346 40,825,183
Construction in Progress 3,741,223 759,064 3,741,223 759,064
$ 192,490,497 $ 19,412,103 $ 5,416,198 $ 206,486,402
Donated Land: Land accounted for in the General Fixed Assets Account Group includes a number of
parcels that have been donated to the City. With respect to certain parcels, the instrument conveying title to
40
�
'
CITY OF CLEARWATER, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
the City contains restrictions as to the purpose for which the land may be used by the City, with the provision
� that title shall revert to the donor if such restrictions are not followed. Land subject to such restrictions is
carried at estimated fair value in the hands of the donor immediately prior to the donation; therefore, the
valuation used does not reflect the impact the use restrictions might have on the fai� value of such land.
� Proprietarv Funds:
A summary of cost and accumulated depreciation of fixed assets of the Proprietary Funds at September 30,
2001, follows:
�
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1
Land
Buildings
Improvements Other Than Building
Machinery and Equipment
Construction in Progress
Less Accumulated Depreciation
Enterprise
$ 10,286,240
20,841,190
288,017,467
12,619,504
21,800,312
353,564,713
111,545,233
$ 242,019,480
Internal
Sevice
$ 696,681
3,210,003
715,322
43,520,881
48,142,887
32,575,200
$ 15,567,687
Estimated
Useful Life
Years
10-40
5-50
1 - 33
Contributed Propertv: As of September 30, 2001, water lines having an estimated cost of $5,141,044,
� sanitary sewer lines having an estimated cost of $7,743,379, storm sewers having an estimated cost of
$3,919,827, and land (for water quality and habitat restoration) having an estimated cost of $922,900 are
reflected in the balances of the proprietary fixed assets.
'
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Assets Recorded Under Capital Leases: Assets recorded under capital leases and the accumulated
amortization thereon (for proprietary fund assets) have been included under the approp�iate categories in the
summaries and schedules presented previously in this note in combination with similar information for owned
assets.
Note (6) Property Taxes
� 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.
Effective October 1, 1999, the City adopted the provisions of Govemmental Accounting Standards Board
' Statement No. 33, Accounting and Financial Reporting for Financial Non-Exchange Transactions.
Implementation of GASB Statement No. 33 resulted in an increase in accounts receivable and deferred
revenue in the General Fund and Special Development Fund of $25,523,580 and $1,708,169, respectively, at
' September 30, 2000. The accompanying financial statements for the year ended September 30, 2000 have
been restated to reflect the changes required by this statement.
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Since taxes are not collected prior to November 1, the City does not record revenue for advance collections.
Uncollected taxes receivable at year-end are recorded, with an appropriate allowance for estimated
uncollectible amounts. The net amount deemed to be collectible but not current (not expected to be collected
within sixty days after the close of the fiscal year) is shown as a deferred revenue in the appropriate fund.
Additionally, taxes assessed for the following fiscal year are recorded as a receivable and a deferred revenue
in accordance with Govemmental 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. Properry 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.
1
41
CITY OF CLEARWATER, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
The City is permitted by State law to levy ten milis without referendum. Additional millage not subject to the
ten mill limitation is authorized if approved by referendum. The tax rate of 5.5032 mills for the year ended
September 30, 2001 was unchanged from the September 30, 2000 rate.
Note (7) Segment Information for Enterprise Funds
The City maintains eight Enterprise funds which provide utilities (water and sewer, gas, solid waste, recycling,
and stormwater), marina, parking, and a combined retail center and convention center.
Segment information for the year ended September 30, 2001 follows:
W ater and Sewer
Gas
Solid Waste
Recycling
Stormwater
Marina
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,
Depreciation Net
and Operating Operating Net
Operating Amortization Income Transfers Income Contributions '
Revenue Expense (Loss) In (Out) (Loss) During Year
$ 35,564,635 $ 5,194,097 $ 3,307,499 $ (1,654,171) $ 1,776,274 $ 1,711,111
30,223,615 1,263,343 4,124,684 (1,014,804) 2,469,977
15,614,432 445,866 1,564,064 (616,470) 1,718,646
2,218,507 131,553 174,494 (89,023) 375,185
5,041,822 1,081,487 358,179 (656,667) (270,072) 1,717,281 '
2,813,147 201,562 (70,889) (63,121) 311,672 934,634
Parking 4,049,558 239,803 1,207,739 1,480,381 379,6a7
Harborview 1,952,813 568,946 (725,596) 2,200,000 1,387,881 '
$ 97,478,529 $ 9,126,657 $ 9,940,174 $ (1,894,256) $ 9,249,944 $ 4,742,673
W ater and Sewer
Gas
Solid W aste
Recycling
Stormwater
Marina
Parking
Harborview
Additions Deletions
to to
Property Property
Plant and Plant and Total
Equipment Equipment Assets
$ 12,999,967 $ (2,816,390) $ 210,429,633
3,126,046 (19,791) 47,586,456
344,445 (4,311) 14,877,472
ai�,so� (22i� a,ia2,oss
2,884,762 (44,883) 32,217,020
1,848,112 (5,041) 4,299,264
54,772 (81,165) 8,761,333
1,443 (1,703) 11,640,441
$ 21,671,154 $ (2,973,505) $ 333,993,678
Note (8) Interfund Balances
Long-Term
Debt
Outstanding
and Other
Liabilities
$ 69,176,642
28,211,229
993,408
7,666,110
Unrestricted �
N et
W orking
Capital Fund
(Deficit) Equity ,
$ 8,915,814 $ 130,559,406
7,429,181
7,532,120
2,915,038
1,895,039
15,492,324
12,247,294 �
4,061,418
23,374,298
189,215 1,054,891 3,758,064 �
680,633 4,603,536 7,782,254
(347,731) 11,077,767
$ 106,917,237 $ 33,997,888 $ 208,352,825 �
As mentioned in Note (1 C), individual fund deficits in the consolidated cash pool have been reclassified as of
September 30, 2001, 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 intertund payable and
receivable balances (current), at September 30, 2001, were as follows:
42
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r
CITY OF CLEARWATER, FLORIDA
' NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
, Deficit in Other Deficit in Other
Fund Pooled Cash Receivables Pooled Cash Payables
General Fund $ $ $ $ 24,925
Special Revenue Fund:
' Community Redevelopment Agency
Capital Project Fund:
Capital Improvement
Enterprise Funds:
' Water and Sewer Utility
Gas Utility
Solid Waste Utility
, Recycling Utility
Stormwater Utility
Yacht Basin and Marina
Parking System
' Intemal Service Funds:
Garage
Administrative Services
General Services
� Centrallnsurance
Fiduciary Funds:
Rehab Loan Expendable Trust
�
265,481
5,080,457
5,643,813
1,514,496
1,425,418
969,346
533,766
1,460,491
347,172
217,748
64,886
593,176
$ 265,481 $ 17,850,769
' Individual interfund advances (long-term) at September 30, 2001, follow:
Fund
Advances to
Other Funds
General Fund $
Special Revenue Fund:
Community Redevelopment Agency
Enterprise Funds:
Solid Waste Utility
Yacht Basin and Marina
Internal Service Funds:
Administrative Services
Central Insurance 2,668,867
$ 2,sss,ss� $ 2,sss,as�
Note (9) Contingencies and Commitments
138,627 103,892
17,283,479
82,474
55,999
300,000
126,854
$ 265,481 $ 17,850,769
Advances from
Other Funds
$ 74,775
926,596
907,211
189,215
571,070
Utilities Services Tax Revenues
Public Service Tax Revenues of the General Fund are pledged as security for the Public Service Tax and
Bridge Revenue Bonds, Series 1985 and for the Improvement Revenue Bonds, Series 1995.
Sales Tau Revenues
Sales Tax Revenues from "Penny for Pinellas" one-cent discretionary infrastructure sales surtax are
pledged as security for the Infrastructure Sales Tax Revenue Bonds, Series 2001.
43
CITY OF CLEARWATER, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
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 Guaranry 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. As of September 30, 2001, the remaining principal balance on the mortgage was
$4,865,311. 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.
Continaent Loan Guarantee
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 Rodriguez 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. The remaining principal balance on the bonds as
of June 30, 2001, totaled $1,900,000.
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.
Outstandina Construction Commitments
At September 30, 2001, material outstanding construction commitments were as follows:
Capital Projects Funds
Enterprise Funds
Construction
Commitments
OutstandinQ
$ 5,553,404
$ 12,814,153
Soil and qroundwater contamination site
The Ciry 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. Contamination assessment activities by the Ciry 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 Cit�s proposed scope of work for
additional on and off-site assessment activities. Additional field activities were initiated in December 2000.
As of this date, all additional work has been completed. 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. Until FDEP has reviewed the Supplemental Contamination Assessment Report and
issues its comments, if any, the City is unable to predict with any degree of certainty whether additional work
may be necessary to delineate the extent of soil and groundwater impacts at the properry. Approximately
$487,500 has been recovered from Ciry insurance policies to be applied to any required remediation.
Grant Revenues
During fiscal year 2001 and prior fiscal years, the City received revenues and contributions related to grants
from the State of Florida and the federal government. 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.
44
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'
CITY OF CLEARWATER, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
' Note (10) Individual Fund Notes
Note (10A) Water and Sewer Utility Enterprise Fund
Contractual Commitment
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 witt�in each calendar year, with a maximum amount of water available
to the Ciry 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, increased to $1.7902 per 1,000 gallons,
including a$.60 per 1,000 gallon surcharge for funding capital projects. The cost of water purchased from
the County during fiscal years 2000 and 2001 was $7,798,095 and $7,305,983, respectively.
�
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1
Note (11) Fund Deficits and Expenditures in Excess of Appropriations
The Special Development Special Revenue Fund had "operating transfers ouY' in excess of appropriations
due to an error in the budget document fo� this fund. The transfers were approved by the City Commission
for the receiving fund's budget but not reflected in the Special Development Fund budget as transfers out.
The Community Redevelopment Agency Special Revenue Fund had °operating transfers ouY' in excess of
appropriations in the amount of $206,618 due to unbudgeted transfers to other funds. Additionally the
fund incurred a current year deficit of $758 as a result of these unbudgeted transfers.
The Harborview Center Enterprise Fund accumulated deficit of $3,056,705 is a result of unprofitable
operations during its first five years of operation. Management is budgeting to fund this accumulated deficit
in the coming years while continuing to closely monitor the pertormance of the convention center and its profit
potential.
Nofe (12) Residual Equity Transfers Between Funds
Residual equity transfers for all funds consisted of a net $209,141 transfer out. Transfers include a return of
contributed capital to the Special Development Special Revenue Fund (residual equity transfer in) from the
Stormwater Utility Fund in the amount of $66,051; a residual equity transfer in to the Water and Sewer Utility
Enterprise Fund in the amount of $58,148 (due to the assumption of lease purchase debt by the General
Long Term Debt Account Group); a residual equity transfer out of the Water and Sewer Utility Fund to the
General Fixed Assets Account Group in the amount of $183,579; a residual equity transfer out of the
Stormwater Utility Fund to the General Fixed Assets Account Group in the amount of $70,720; and a residual
equity transfer out of the Parking System Enterprise Fund to the General Fixed Assets Account Group in the
amount of $79,041.
Note (13) Contributed Capital - Proprietary Funds
The changes in contributed capital for the proprietary funds during fiscal 2001 follow:
Additions
Contributions from:
OtherFunds
Federal and State Grants
Developers
Property Owners
Other Govemmental Entiites
Total Additions
Retum of Contributed Capital
To OtherFunds
Net Additions
Contributed Capital
October 1, 2000
Contributed Capital
September 30, 2001
$
Water and
Sewer Stortnwater Marina
Utiliry Fund Utiliry Fund Fund
37,183 $ 934,634 $
1,295,000
AdministraUvF
Parking Services
Fund Fund
3,522 $ 26,32E
1,324,068 25,792
80,188
331,644 359,306 376,125
1,735,900 1,717,281 934,634 379,647 26,326
(24,789) (66,051)
1,711,111 1,651,230 934,634 379,647 26,326
72,713,267 21,466,274 598,460 755,358 23,396
74,424,378 23,117,504 1,533,094 1,135,005 49,722
The Cit�s other proprietary funds had no change in contributed capital during fiscal year 2001.
45
CITY OF CLEARWATER, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2001
Note (14) Pending Litigation
In the normal cou�se of operations the Ciry 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 which
have been reserved and recorded as liabilities in the Central Insurance Fund.
Note (15) Conduit Debt
The City has one issue of conduit debt outstanding as follows:
Description / Purpose
Drew Gardens Refunding Bonds / Residential rental facility
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Original Amount Amount �
Issue Outstanding Outstanding
Amount at 9/30/00 at 9/30/01
$ 3,425,000 $ 3,140,000 $ 3,090,000 �
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.
Note (16) Subsequent Events
The City issued Improvement Revenue Refunding Bonds, Series 2001, in the principal amount of
$11,470,000 during October 2001. The bonds were issued to defease the Citys outstanding Florida Public
Service Tax and Bridge Revenue Bonds, Series 1985 and Improvement Revenue Bonds, Series 1995. The
Series 2001 Bonds and the interest thereon are payable solely from the Public Service Tax and do not
constitute a general indebtedness of the City. The bonds are rated "Aaa" and "AAA" by Moody's and Fitch
respectively.
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CITY OF CLEARWATER. FLORIDA
DEFINED BENEFIT PENSION PLANS
REGIUIRED SUPPLEMENTARY INFORMATION - UNAUDITED
Page 1 of 3
Schedules of Fundin� Progress:
Emalovees 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)/c)
01/01/96 $ 244,744,488 $ 271,124,381 $ 26,379,893 0.90 $ 44,208,964 0.60%
01/01/97 $ 272,346,200 $ 297,892,502 $ 25,546,302 0.91 $ 44,955,345 0.57%
01/01/98 $ 308,596,133 $ 333,250,492 $ 24,654,359 0.93 $ 47,281,198 0.52%
01/01/99 $ 354,088,751 $ 377,788,731 $ 23,699,980 0.94 $ 49,666,523 0.48%
01/01/00 $ 414,826,422 $ 490,426,940 $ 75,600,518 0.85 $ 50,937,403 1.48%
01/01/01 $ 461,724,610 $ 535,672,208 $ 73,947,598 0.86 $ 54,864,584 1.35%
Firefiahters 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) (a/b) (c) ((b-a)/c)
01/01/96
01 /01 /97
01 /01 /98
01 /01 /99
01 /01 /00
01 /01 /01
$
$
$
$
3,360,076
3,407,925
3,626,850
3,963,395
4,092,298
4,668,572
$
$
$
$
11,236,766 $
11,014,979 $
10,565,127 $
10,473,888 $
9,746,671 $
9,527,303 $
7,876,690
7,607,054
6,938,277
6,510,493
5,654,373
4,858,731
0.30
0.31
0.34
0.38
0.42
0.49
' Covered payroll is for the calendar year period used for the actuarial valuation.
47
$
$
$
$
48,859
49,044
50,573
15,605
161.21 %
155.11%
137.19%
417.21 %
N/A
N/A
CITY OF CLEARWATER. FLORIDA
DEFINED BENEFIT PENSION PLANS
REQUIRED SUPPLEMENTARY INFORMATION - UNAUDITED
Page 2 of 3
Schedules of Emplover Contributions:
Year
Ended
Sept. 30,
1996
1997
1998
1999
2000
2001
Emolovees' Pension Fund
Annual (a)
Required
Contribution
$ 3,125,471
$ 4,398,790
$ 3,080,802
$ 840,558
$ -
$ 174,377
Percent
Contributed
92%
76%
119%
464%
N/A
2440%
(b)
(b)
(c)
(a) The actuarially determined contribution requirements for the City's fiscal year ended September 30, 2001
are based on actuarial valuations as of January 1, 2000. Since the City's contributions are made during its
fiscal year, which commences nine months after the date of the actuarial valuations, the City, with approval
of State regulatory authorities, is following the practice of adding interest to its required contributions at the
assumed rate of return on investments for a period of one year.
(b) The contribution is less than the annual required contribution due to contributions in excess of required
prior to 1996, resulting in a net pension asset with a balance as of September 30, 2001, totaling $15,845,929
(c) Actual contribution for fiscal 2001 was $4,255,484, as required by City pension ordinance. See footnote 4A.
Year
Ended
Sept. 30,
1996
1997
1998
1999
2000
2001
Firemen's Relief Pension Fund
Annual (a)
Required
Contribution
$ 867,569
$ 910,559
$ 955,920
$ 1,003,758
$ 1,046,856
$ 1,098,990
Percent
Contributed
100%
100%
100%
100%
100%
100%
(a) The actuarially determined contribution requirements for the City's fiscal year ended September 30, 2001
are based on actuarial valuations as of January 1, 2000. Since the City's contributions are made during its
fiscal year, which commences nine months after the date of the actuarial valuations, the City, with approval
of State regulatory authorities, is following the practice of adding interest to its required contributions at the
assumed rate of return on investments for a period of nine months.
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CITY OF CLEARWATER. FLORIDA
� DEFINED BENEFIT PENSION PLANS
REGIUIRED SUPPLEMENTARY INFORMATION - UNAUDITED
Page 3 of 3
� NOTES TO SCHEDULES OF REGIUIRED PENSION SUPPLEMENTARY INFORMATION
Annual required contributions for the Employees' Pension Fund are calculated using the Entry Age Normal with Frozen
Initial Liabiliry method. The amortization method is level dollar closed. 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 liabiliry are being amortized over a 30-year
period from their effective dates in accordance with State law.
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 Ciry and the Plan participants. For this purpose, the unfunded actuarial
liabiliry 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 leve�, or'rf the resulting cost level exceeds 60% of a mill in a current year. The
aggregate actuarial cost method does not identify or separately amortize unfunded actuarial liabilities.
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The actuarially determined contribution requirements fo� the City's fiscal year ended September 30, 2001, are based on
actuarial valuations as of January 1, 2000. Since the Citys 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, 2000, in the determination of the
annual required contribution are as follows:
Emplovees' Pension Fund
(1) Assumed rate of retum on investments of 7% per annum.
(2) Projected satary increase at a rate of 5% per year, including both cost-of-living adjustments of 3% and merit or
seniority increases at 2%.
(3) Assumed inflation rate of 3%
(4) Mortaliry based on the 1983 Group Annuiry Mortaliry Table for Males with female ages set back 6 years.
(5) Pre-retirement withdrawals assumed to occur in accordance with standard scales of moderate turnover rates
(Scale 255) for males and heavy tumover rates (Scale 355) for females.
(6) Pre-retirement incidence of disability assumed to occur in accordance with a standard scale of moderate disabiliry
rates (Class 1, 1952 Inter-Company); rates for females assumed to be twice that for males.
Firemen's Relief and Pension Fund
(1) Assumed rate of retum on investments of 5.5% compounded annually for both pre- and post-retirement.
(2) Assumed benefits grow at annually compounded rate of 2°� related to cost-of-living adjustments only.
(3) Assumed inflation rate of 3%.
(4) Mortality based on the 1983 Group Annuity Mortality Table for both active and retired; assumed disabled
participants will e�erience mortaliry according to PBGC Tables 3& 4 for males and females, respectively.
(5) Assumed no withdrawals will occur.
(6) No active participants.
(7) Assumed value of one mill of ad valorem tax will increase at rate of 5°/a per year.
Significant chanaes affectina the aresented 6-vear trend information include:
(1) Effective January 1, 1996, several Employees Pension Plan changes took effect. These changes include a benefit
increase from 2.5% to 2.75% of average compensation for the Iast 5 years and a line of service disability benefit
reduction from 75% to 66.67% of the average compensation for the last 5 years.
(2) As a result of a voter referendum on March 14, 2000, the Employees Pension was modified to provide for a 1.5%
cost of living increase, an additional retirement age of 65 with 10 years of services, plus additional eligibility and
benefits for police and firefighters effective January 1, 2000.
49
GENERAL FUND
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The General Fund is used to account for the receipt and expenditure of resources traditionally associated �
with local govemment and which are not required to be accounted for in another fund. These resources are
provided primarily from taxes and are used to provide services which are deemed not susceptible to a user '
charge financing method.
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CITY OF CLEARWATER. FL�RIDA
GENERAL FUND
BALANCE SHEET
$EPTEMBER 30. 2001 WITH COMPARATIVE TOTALS FOR 2000
2001
Assets
Cash on Hand and in Banks
Equity in Pooled Cash and Investments
Receivables:
Accounts
Taxes
Property Taxes Receivable, Net of Allowance for Uncollectible
Taxes of $554,496 in 2001 and $536,805 in 2000
Due from Governmental Entities
Inventory
Prepaid Expenditures
Liabilities and Fund Balances
Liabilities:
Accounts and Contracts Payable
Accrued Payroll
Due to Other Funds
Due to Other Govemmental Entities
Deposits
Deferred Revenue
Advances from Other Funds
Total Liabilities
Fund Balance:
Reserved for:
Prepaid Expenditures
Encumbrances
Unreserved - Undesignated
Total Fund Balance
See accompanying notes to Financiat Statements.
51
2000
$ 20,925 21,775
10,773,512 6,534,260
313,371 440,417
2,169,593 2,314,185
28,070,874 25,723,598
30,553,838 28,478,200
986,337 1,323,636
6,004 6,227
13,101 14,570
$ 42,353,717 36,378,668
$ 113,390 130,533
876,359 864,370
24,925
8,149 10,969
4,192 4,502
28,380,221 26,162,053
74,775
29,482,011 27,172,427
13,101 14,570
1,052,477 1,100,514
1,065,578 1,115,084
11,806,128 8,091,157
12,871,706 9,206,241
$ 42,353,717 36,378,668
� • _ ; , _ : • :i l �7d
GENERALFUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS)
»h� i ��.n ���^en e�oTCnna�a 30,�001 WITH COMPARATIVF ToTOI s FOR 2000
Revenues:
Taxes:
Property
Franchise
Utilities
Licenses, Permits, and Fees
Intergovemmental
Charges for Services:
Administrative Charges to Other Funds
Other Charges
Fines, Forfeitures, and Penalties
Miscellaneous Revenues
Total Revenues
Expenditures:
City Commission
City Manager
Human Relations
Legal
City Clerk
Public Communications and Markebng
Finance
Human Resources
Non-Departmental
Police
Fire
Public WorksEngineering
Public Works-Transportation and Drainage
Parks and Recreation
Library
Planning & Development Services
Neighborhood Housing Services
Marine
Economic Development
Office of Tourism Development
Internal Audit
Office of Management & Budget
Grant Writing
Strategies For Success
Total Expenditures (Budgetary Basis)
Excess of Revenue Over Expenditures (Budgetary Basis)
Other Financing Sources (Uses) (Budgetary Basis):
Operating Transfers In
Operating Transfers Out
Excess (Deficiency) of Revenues and Other Financing Sources Over
Expenditures and Other Financing Uses (Budgetary Basis)
Encumbered Purchase Orders, Beginning of Year
Encumbered Purchase Orders, End of Year
Excess (Deficiency) of Revenues and Other Financing Sources
Over Expenditures and Other Financing Uses (GAAP Basis)
Fund Balances, Beginning of Year
Fund Balances, End of Year
See accompanying notes to Financial Statements.
52
Original
Budget
$ 25,832,120
7,937,460
16,167,360
49,936,940
3,215,970
13,974,190
7,334,790
2,039,460
1,498,060
1,209,300
79.208,710
204,950
700,530
574,810
1,237,360
1,023,580
798,660
1,812,510
989,580
1,007,330
25,464,710
14,057,710
2,142,230
5,271,970
13,107,190
4,394,520
3,674,870
590,760
460,970
682,640
138,330
253,070
66,180
78,654,460
554,250
4,381,290
(4,925,320)
(544,030)
10,220
10,220
9,206,241
$ 9,216,461
Revised
Budget
26,018,720
8,893,700
15,213,750
50,126,170
3,517,120
13,850,749
7,582,590
1,761,330
1,565,160
1,694,235
80,097,354
219,170
699,850
577,578
1,236,310
993,110
817,900
1,811,040
1,039,990
1,007,330
25,547,824
14,055,640
2,117,240
5,296,310
13,146,360
4,440,488
3,632,580
624,510
483,210
718,410
138,200
258,850
66,180
78,928,080
1,169,274
4,271,495
(5,014,950)
(743,455)
425,819
425,819
9,206,241
9,632,060
2001
Variance
Actual Favorable
(Unfavorable)
25,973,420
8,700,706
15,486,388
50,160,514
3,495,192
13,797,228
7,613,256
1,765,411
1,550,505
2,314,275
80,696,381
205,578
569,876
573,373
1,137,040
901,300
707,801
1,677,123
1,049,506
947,254
24,999,095
13,197,724
2,093,013
5,207,449
12,883,016
4,322,842
3,482,449
559,494
487,027
593,340
128,998
257,652
47,260
76,028,210
4,668,171
4,040,154
(4,994,823)
(954,669)
3,713,502
(1.100.514)
1,052,477
3,665,465
9,206,241
12,871.706
��`��)
(192,994)
272,638
34,344
(21,928)
(53,521)
30,666
4,081
(14,655)
620,040
599,027
13,592
129,974
4,205
99,270
91,810
110,099
133,917
(9,516)
60,076
548,729
857,916
24,227
88.861
263,344
117,646
150,131
65,016
(3,817)
125,070
9,202
1,198
18,920
2,899,870
3,498,897
(231,341)
20,127
(211,214)
3,287,683
(1,100,514)
1,052,477
3,239,646
3,239,646
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2000
Actual
24,269,342
7,743,009
15,242,594
47,254,945
3,266,946
13,212,246
6,971,733
1,504,268
1,598,033
1,620,123
75,428,294
189,531
750,933
503,353
1,023,039
900,019
738,410
1,417,913
996,024
1,488,479
25,141,860
12,594,854
1,993,198
4,913,630
12,188,158
3,543,119
3,426,019
585,623
470,803
542,889
227,646
96,922
236,524
122,476
74,091,422
1,336,872
4,017,737
(5,965,994)
(1,948,257)
(611,385)
(772,462)
1,100,514
(283,333)
9,489,574
9,206,241
This Page In terl tionally Left Blank
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SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for the receipt, custody, and expenditure of revenues from
specific sources for which the City is required legally to limit expenditures to particular uses and to account
separately for these resources.
Special Programs Fund
Special Development Fund
Community Redevelopment
Agency
to account for grants and contributions, the use of which is restricted
for certain projects.
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 certain
capitat improvement projects.
to account for receipt, custody and expenditure of property tax
increment funds associated with related redevelopment projects.
Local Housing Assistance to account for monies allocated to the City under the Local Housing
Trust Fund Assistance grant program.
55
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SPECIAL REVENUE FUNDS �
COMBINING BALANCE SHEET
SEPTEII�BER 30� �001 WITH GOII�PARATiVE TOTALS FOR 2000 �
Special Speclal Community
Programs Development Redevelopment �
Fund Fund Agency
ss
Cash on Hand and in Banks $
Equity in Pooled Cash and Investments
Receivables:
Notes - Noncurrent
Mortgage Loans
Rehabilitation Advances
Property Taxes Receivable, Net of Allowance for
Uncollectible Taxes of $ 69,828 for 2001 and
$67,577 for 2000
Other
Advances to Other Funds
Due from Other Govemmental Entities:
Grants
Other Govemmental Receivables
Land Held for Resale
Liabilities and Fund Balances �
Liabilities:
Accounts and Contracts Payable
Accrued Payroll
Due to Other Govemmental Entities
Construction Escrows
Due to Other Funds
Due to Other Funds (Deficit in Pooled Cash)
Advances from Other Funds
Deferred Revenue
Total Liabilities
Fund Balances:
Reserved for:
Encumbrances
Advances to Other Funds
Noncurrent Notes Receivable
Special Programs
Unreserved:
Designated for Special Programs
Undesignated
Total Fund Balances
See accompanying notes to Financial Statements.
4,580,445 6,645,112
10,000
100 �
i
1,881,395 �
289 102,027
289 1,891,395 102,027
�
769,609
1,299,914 �
769,609 1,299,914
1,171,328
$ 5,350,343 9,836,421 1,273,455 �
$ 84,336
28,564
2,262 508,646
103,892
138,627
926,596
1,881,395 102,027
115,162 2,390,041 1,271,142
2,313
10,000
2,314,036
2,314,036 10,000 2,313
1,989,744 5,411,605
931,401 2,024,775
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5,235,181 7,446,380 2,313 �
$ 5,350,343 9,836,421 1,273,455
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Local Housing
Assistance
Trust Fund
1,231,432
3,360,799
51,001
3,411,800
4,643,232
222,897
86
222, 983
4,420,249
4,420,249
4,643,232
Totals
2001 2000
100
12,456,989
10,000
3,360,799
51,001
1,881,395
102,316
5,405,511
769,609
1,299, 914
2,069,523
1,171,328
21,103,451
84,336
28,564
510,�8
222,897
103,892
138,627
926,596
1,983,508
3,999,328
2,313
10,000
2,314,036
2,326,349
7,401,349
7,376,425
17,104,123
21,103,451
57
100
12,945,137
12,500
2,784,839
51,901
1,725,453
111,440
4,686,133
86,291
469,770
1,285,247
1,755,017
1,171,328
20,644,006
221,745
13,099
278,838
120,150
89,875
39, 913
1,038,569
1,835,414
3,637,603
3,071
86,291
12,500
2,058,164
2,160,026
9,954,357
4,892,020
17,006,403
20,644,006
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SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
F�Gr4L YEAR EhDED SEPTEh�BER 30 2001 WITH GOMPARATIVE TOTALS FOR 2000
Revenues:
Taxes
Licenses, Permits and Fees
Intergovemmental Revenues:
Grants
Infrastructure Tax
Local Option Sales Tax
Other
Fines, Forfeitures and Penalties
Miscellaneous Revenues:
Rental Income
Earnings on Investments
Donations
Other
Total Revenues
Expenditures:
Current:
General Government
Public Safety
Physical Environment
Economic Environment
Human Services
Culture and Recreation
Capital Outlay
Total Expenditures
Excess of Revenues Over Expenditures
Other Financing Sources (Uses):
Operating Transfers In
Operating Transfers In - Component Unit
Operating Transfers Out
Operating Transfers Out - Component Unit
Excess (Deficiency) of Revenues and Other Financing Sources
Over Expenditures and Other Financing Uses
Fund Balances, Beginning of Year
Residual Equity Transfers In
Fund Balances, End of Year
See accompanying notes to Financial Statements.
58
$
Speclal Special
Programs Development
Fund Fund
1,738,590
913,445
3,061,578
8,385,149
903,741
3,061,578 9,288,890
464,562
410,358 2,469,991
244,647
1,218,436
1,873,441 2,469,991
5,399,581 14,410,916
679,821 80
1,938,868
372,503
653,480
128, 850
519, 981
863,432
5,156,935 80
242,646 14,410,836
577,861
(644,500) (15,368,573)
(66,639) (15,368,573)
176,007 (957,737)
5,059,174 8,338,066
66,051 �
$ 5,235,181 7,446,380
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a
Community Local Housing
Redevelopment Assistance
Agency Trust Fund
977,094
239,264
239,264 977,094
9,463
66,196 95,513
1,445
77,104 95,513
316,368 1,072,607
194,226 171,552
194 226 171, 552
1 2,142 901,055
320, 914
89,044
(493,007) (86,898)
(39,851)
(122,900) (86,898)
(758) 814,157
3,071 3,606,092
2,313 4,420,249
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Totals
2001 2000
1,738,590
913,445
4,038,672
8,385,149
903,741
239,264
13,566,826
464,562
9,463
3,042,058
244,647
1,219,881
4,516,049
21,199, 472
679, 901
1,938,868
372,503
i ,019,258
128,850
519,981
863,432
5,522,793
15,676,679
898,775
89,044
(16,592,978)
(39,851)
(15,645,010)
31,669
17,006,403
66,051
17,104,123
1,818,306
2,165,853
3,174, 989
8,285,884
1,082,428
12,543,301
323,415
8,103
1,551,164
248,272
433,578
2,241,117
19,091,992
408,051
1,542,112
446,037
756,795
130,093
477,819
1,118,203
4,879,110
14,212,882
1,084,050
39,022
(12,203,427)
(31,174)
(11,111,529)
3,101, 353
13,593,Q75
311,975
17,006,403
CITY OF CLEARWATER. FLORIDA
SPECIAL DEVELOPMENT FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL
FlSCAL YEAR ENDED SEPTEMBER 30. 2001 WITH COMPARATIVE TOTALS FOR 2000
2001 2000
Variance
Favorable Actual
Budget Actual (Unfavorable)
Revenues:
Taxes $ 1,728,820 1,738,590 9,770 1,818,306
Licenses, Permits, and Fees:
Development Impact Fees
Fees for Drainage-Sidewalks
Fees for Parking
Open Space Fees
Recreabon Facilily Impact Fees
Recreation Land Impact Fees
Transportation Impact Fees
Intergovemmental
Miscellaneous:
Earnings on Investments
Total Revenues
Expenditures:
Current:
Central Govemment
255,680 262,250 6,570 65,107
1,783 1,783 10,683
1,680 1,680 1,503,000
130,000 127,431 (2,569) 156,408
10,000 13,150 3,150 32,800
21,840 13,478 (8,362) 127,443
470,000 493,673 23,673 270,412
887,520 913,445 25,925 2,165,853
9,535,230 9,288,890 (246,340) 9,185,821
800,000 2,469,991 1,669,991 1,181,393
800,000 2,469,991 1,669,991 1,181,393
12,951,570 14,410,916 1,459,346 14,351,373
Excess of Revenues Over Expenditures 12,951,570
Other Financing Uses:
Operating Transfers Out
Excess (Deficiency)of Revenues Over
Expenditures and Other Financing Uses
Fund Balances, Beginning of Year
Residual Equity Transfers In
Fund Balances, End of Year
80 (80)
14,410,836 1,459,266 14,351,373
(9,395,936) (15,368,573) (5,972,637) (11,441,073)
3,555,634 (957,737) (4,513,371) 2,910,300
8,338,066 8,338,066 5,115,791
66,051 66,051 311,975
$ 11,893,700 7,446,380 (4,447,320) 8,338,066
See accompanying notes to Financial Statements.
.�
CITY OF CLEARWATER� FLORIDA
COMMUNITY REDEVELOPMENT AGENCY
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL
FISCAL YEAR ENDED SEPTEMBER 30, 2001 WITH COMPARATIVE TOTALS FOR 2000
Revenues:
Intergovemmental
Miscellaneous Revenues:
Rental Income
Eamings on Investrnents
Other
Total Revenues
Expenditures:
Current - Economic Environment
Total Expenditures
Excess (Deficiency) of Revenues Over Expenditures
Other Finanang Sources (Uses):
Operating Transfers In
Operating Transfers In - Component Unit (DDB)
Operating Transfers Out
Operating Transfers Out - Component Unit (DDB)
2001 2000
Varlance
Favorable Actual
Budget Actual (Uniavorable)
$ 239,264 239,264 182,491
»,a�z s,ass (2,sas� e,1os
10,000 66,196 56,196 55,785
1,445 1,445 35,408
21,812 77,104 55,292 99,296
261,076 316,368 55,292 281,787
345,448 194,226 151,222 167,906
345,448 194,226 151,222 167,906
(84,372) 122,142 206,514 113,881
320,913 320,914 1 250,935
89,698 89,044 (654) 39,022
(286,389) (493,007) (206,618) (375,593)
(39,850) (39,851) (1) (31,174)
84,372 (122,900) (207,272) (116,810)
(Deficiency) of Revenues and Other Financing
Sources Over F�cpenditures and Other Financing Uses (758) (758) (2,929)
Fund Balance, Beginning of Year 3,071 3,071 6,000
Fund Balance, End of Year $ 0 2,313 2,313 3,071
See accompanying notes to Financial Statements.
61
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DEBT SERVICE FUNDS
Debt Service Funds provide separate accounting reco�ds for all debt interest, principal, and reserve
requirements for all General Long-Term Debt. Debt of Proprietary Funds is serviced through restricted
accounts maintained within the individual Enterprise or Intemal Service Fund associated with the debt.
�
Improvement Revenue Bonds to account for the advance monthly accumulation of resources by
� Debt Service Fund transfer of Public Service Tax revenues from the General Fund and the
payment of currently maturing installments of principal and interest
during each fiscal year.
� Public Service Tax and
Revenue Bonds Debt
■ Fund
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Bridge to account for the advance monthly accumulation of resources by
Service transfer of Public Service Tax revenues from the General Fund; the
retirement of currently maturing installments of principal and interest
during each fiscal year. As described in the notes to the general
purpose financial statements, this fund is responsible for only a portion
of the total debt service, with the remainder being allocated to the
Parking Fund.
Notes and Mortgages Debt to account for the advance monthly accumulation of resources by
Service Fund 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
govemmental funds during each fiscal year.
Spring Training Facillty Debt to account for the advance monthly accumulation of resources and the
Service Fund payment of currently maturing installments of principal and interest for
debt to be issued in fiscal 2002 for a Spring Training Facility.
Infrastructure Revenue Bonds to to account for the advance monthly accumulation of resources by
Debt Service Fund 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.
C�3
CITY OF CLEARWATER. FLORIDA
DEBT SERVICE FUNDS
COMBININa BALANCE SHEET
GFPTEh"BER 80 2001 WITH COMPARATIVE TOTALS FOR 2000
Assets
Equity in Pooled Cash and Investments
Liabilities and Fund Balances
Accounts Payable
Accrued Interest Purohased
Total Liabilities
Fund Balances:
Reserved for.
Debt Service:
Current Requirements - Principal
Current Requirements - Interest
Future Requirements
Unreserved:
Designated for Debt Service
Total Fund Balances
Public
Service Tax
Improvement and Bridge
Revenue Bonds Revenue Bonds
Debt Servlce Debt Service
Fund Fund
Notes
and
Mortgages
Debt Service
Fund
S 220,658 120,845
S 220,658 120,845 0
C
126,667 41,189
93,991 8,121
71,535
220,658 120,845
220,658 120,845
S 220,658 120,845 0
See accompanying notes to Fnancial Statements.
64
Spring
Tralning
Facllity
Debt Service
Fund
647,912
Infrastructure
Sales Tax
Revenue Bonds
Debt S�Nice
Fund
662,800
647,912 662,800
1,571
110,205
111,776
551,024
551,024
647,912
647,912 551,024
647,912 662,800
65
2001
1,652,215
1,652,215
1,571
110,205
111,776
167,856
653,136
71,535
892.527
647,912
1,540,439
1,652,215
Totals
2000
338,155
338,155
159,352
105,063
73,740
338,155
338,155
338,155
CITY OF CLEARWATER, FLORIDA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FISGAL YEAR ENDED SEPTEMBER 30 2001 WITH COMPARATIVE TOTALS FOR 2000
Pubiic
Improvement Service Tax Notes
Revenue and Bridge and
Bonds Revenue Bonds Mortgages
Debt Service Debt Servlce Debt Service
Fund Fund Fund
Revenues:
Grants $
Eamings on Investments 19,188 10,163
Expenditures:
DebtServiceRequirements-Principal 180,000 47,222 1,241,085
Debt Service Requirements - Interest & Fiscal Charges 569,166 27,858 191,867
Bond Issuance Costs
Total Expenditures 749,166 75,080 1,432,952
Excess (Deficiency) of Revenues Over Expenditures (729,978) (64,917) (1,432,952)
Other Financing Sources:
Bond Proceeds
Operating Transfers In 735,130 63,113 1,432,952
735,130 63,113 1,432,952
Excess (Deficiency) of Revenues and Other
Financing Sources Over Expenditures
Fund Balances, Beginning of Year
Fund Balances, End of Year
See accompanying notes to Financial Statements.
5,152 (1,804)
215,506 122,649
$ 220,658 12Q845 0
..
Spring InhasUucture
Training Revenue
Facility Bonds
Debt Service Debt Service
Fund Fund
634,465
13,447 6,068
Totals
2001 2000
634,465
48,866 19,894
1,468,307
788,891
418,265 418,265
418,265
647,912 (412,197)
418,265
544,956
963,221
647,912 551,024
647,912 551,024
67
2,675,463
(1.992,132)
418,265
2,776,151
3,194,416
1,202,284
338,155
1,540,439
1,375,978
765,268
2,141,246
(2,121,352)
2,125,021
2,125,021
3,669
334,486
338,155
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68
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CAPITAL PROJECTS FUNDS
�
Capitai Projects Funds are used to account for resources to be used for acquisition or construction of major
� capital improvement projects including property acquisitions, 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.
Capital Improvement Fund to provide combined accounting presentation for all Ciry 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.
�
Sales Tax Revenue to provide separate accounting records for the financing and
Construction Fund construction of the new entryway and roundabout at Clearwater Beach
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��69
CITY OF CLEARWATER, FLORIDA
CAPITAL PROJECTS FUNDS
BALANCE SHEET
cepTEMB R 30 2001 WITH COMPARATIVE TOTALS FOR 2000
Assets
Equity in Pooled Cash and Investments
Other Receivables
Improvement Liens
Due from Other Funds
Due from Other Funds (Deficit in Pooled Cash)
Liabilities and Fund Balances
Liabilities:
Accounts and Contracts Payable
Due to Other Funds
Due to Other Funds (Deficit in Pooled Cash)
Deferred Assessment Liens
Total Liabilities
Fund Balances:
Reserved for Encumbrances
Unreserved:
Designated for Capital Project Appropriations
Undesignated Deficit
Total Fund Balances
See accompanying notes to Financial Statements.
Sales Tax
Capital Revenue Totals
Improvement ConsUuction
Fund Fund 2001 2000
$ 52,257,818 14,846,113 67,103,931 41,433,040
16,298
104,899 104,899 127,362
265,481 265,481 17,560,428
$ 52,628,198 14,846,113 67,474,311 59,137,128
$ 777,352 678,406 1,455,758 911,504
17,283,479 17,283,479 33,339,839
8,515,313
104,899 104,899 127,362
18,165,730 678,406 18,844,136 42,894,018
6,070,136 6,070,136 5,411,608
28,392,332 14,167,707 42,560,039 19,691,129
(8,859,627)
34,462,468 14,167,707 48,630,175 16,243,110
$ 52,628,198 14,846,113 67,474,311 59,137,128
70
,
CITY OF CLEARWATER. FLORIDA
CAPITAL PROJECTS FUNDS
COMBININCi STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED SEPTEMBER 30, 2001 WITH �OMPARATIVE TOTALS FOR 2000
Revenues:
Intergovemmentai Revenues:
Grants
Miscellaneous:
Earnings on Investments
Special Assessments
Other
Total Revenues
Expenditures:
Capital Outlay
Deficiency of Revenues
Over Expenditures
Other Financing Sources (Uses):
Proceeds of General Indebtedness
Operating Transfers In
Operating Transfers In - Component Unit
Operating Transfers Out
Excess of Revenues and Other
Financing Sources Wer Expenditures
and Other Financing Uses
Fund Balances, Beginning
of Year
Fund Balances, End of Year
Sales Tax
Capital Reve�ue Totals
Improvement ConstrucUon
Fund Fund 2001 2000
$ 5,100,000 5,100,000 234,058
42,033 42,033 (13,997)
31,045 31,045 54,087
20,000 2,772 22,772 26,545
93,078 2,772 95,850 66,635
5,193,078 2,772 5,195,850 300,693
17,813,105 24,000,109 41,813,214 15,767,475
(12,620,027) (23,997,337) (36,617,364) (15,466,782)
2,454,265 46,925,017 49,379,282 2,149,140
19,765,391 19,765,391 14,496,065
10,000
(140,244) (140,244) (112,715)
22,079,412 46,925,017 69,004,429 16,542,490
9,459,385 22,927,680 32,387,065 1,075,708
25,003,083 (8,759,973) 16,243,110 15,167,402
$ 34,462,468 14,167,707 48,630,175 16,243,110
See accompanying notes to Financial Statements.
71
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ENTERPRISE FUNDS
Enterprise Funds are used to account for the financing, acquisition, operation and maintenance of
governmental facilities and services that are supported primarily by user charges.
Water and Sewer Utility to account for the financing, construction, operation and maintenance
of the water and sewer services of the Ciry from charges made to
users of the service. The service area for water and sewer extends
beyond the City limits.
� Gas Utility
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to account for the financing, construction, operation and maintenance
of the gas service of the Ciry from charges made to users of the
service. The service area for gas extends beyond the City limits.
Solid Waste Utility to account for the financing, construction, operation and maintenance
of the solid waste service of the City from charges made to users of the
service. The service area for solid waste is coterminous with the Ciry
limits.
Recycling 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.
Stormwater Utility to account for the financing, construction, operation and maintenance
of the stormwater management system of the City from charges made
for each developed property. The stormwater management area is
coterminous with the City limits.
Yacht Basin and Marina
Parking System
Harborview Center
to account for the financing, operation and maintenance of the 205-slip
City marina and associated real property on Clearvvater Beach from
rents collected from users.
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.
to account for the renovation, operation, and maintenance of a former
department store building, creating a combined retail and convention
center facility.
� � 73
r • : : � _ : • : I�7,1
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2001 WITH COMPARATIVE TOTALS FOR 2000
Assets
Current Assets:
Cash on Hand and in Banks
Equity in Pooled Cash and Investments
Accounts and Contracts Receivable:
Billed
Unbilled Charges Estimated
Less: Ailowance for Uncollectible Accounts
Total Fieceivables, Net
Due from Other Funds
Due from Other Govemmental Entlties
Inventories, at Cost
Prepaid Expenses and Other Assets
Total Current Assets
Restricted Assets:
Equity in Pooled Cash and Investrnents
Due from Other Funds
Due from Other Govemmental Entlties
Investments
Interest Receivable
Total Restricted Assets
Deferred Charges
Net Pension Asset
Property, Plant and Equipment, Net of Accumulated
Depreciation
See accompanying notes to Financial Statements.
Water
and
Sewer Gas Solid Waste Recycling
UtilHy Utility Utllity Utility
$ 400 700 200
4,377,983 1,654,149 5,337,370
2,660,003 1,408,402 1,076,768
1,156,400 957,900 559,806
3,816,403 2,366,302 1,636,574
(259,306) (145,587) (63,454)
3,557,097 2,220,715 1,573,120
2,930,946 5,643,813 1,514,496
275,136
446,905 506,954
4,664
11,593,131 10,026,331 8,425,186
27,141,005 1,585,753 707,799
2,149,511
3,058,741
86,196
32,435,453 1,585,753 707,799
3,352,570 1,551,465
1,406,662 761,849 816,007
161,641,817 33,661,058 4,928,480
$ 210,429,633 47,586,456 14,877,472
74
1,395,758
88,810
83,507
172,317
(4,989)
167,328
1,425,418
2,988,504
160,313
1,033,242
4,182,059
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� Stormwater
Udlity
,
Yacht
Basin
and
Marine
Page 1 of 2
Totals
Parking Harborvlew
System Center 2001 2000
817 22,000 100 24,217 16,950
721,928 856,307 3,153,682 49,996 17,547,173 8,460,520
345,913 164,847 5,744,743 5,258,097
400,000 3,157,613 3,176,158
745,913 164,847 8,902,356 8,434,255
(20,364) (493,700) (367.648)
725,549 164,847 8,408,656 8,066,607
969,346 533,766 1,460,491 14,478,276 29,520,548
239,997 515,133 192,156
15,986 969,845 1,097,517
4,664 4,506
2,416,823 1,406,876 4,876,170 214,943 41,947,964 47,358,804
6,134,507 64,850 35,633,914 33,862,043
2,149,511 3,507,075
455,000 455,000 70,073
3,058,741 2,990,334
86,196 86,196
6,589,507 64,850 41,383,362 40,515,721
107,585 5,011,620 5,386,021
275,320 108,335 102,766 3.631,252 2,972.954
22.827,785 2,784,053 3,717.547 11,425,498 242,019,480 232,045,512
32,217,020 4,299,264 8,761,933 1� 333,993,678 328,279,012
75
(Continued)
� • t: �_ : •; �,
ENTERPRISE FUNDS
COMBINING BALANCE SHEET, Contlnued
SEPTEMBER 30, 2001 WITH COMPARATIVE TOTALS FOR 2000
Liabilities and Fund Eauitv
Current Liabilities (Payable from Current Assets):
Accounts and Contracts Payable
Accrued Payroll
Accrued Compensated Absences
Accrued Interest Payable
Due to Other Funds
Due to Other Funds (Deficit in Pooled Cash)
Deposits
Deferred Revenue
Current Portion of Long-Term Liabilities:
Revenue Bonds
Notes, Loan Pool Agreement and Acquisition Contracts
Total Current Liabilities (Payable from Current Assets)
Current Liabilities (Payable from Restricted Assets):
Construction Contracts Payable
Accrued Interest Payable
Current Portion of Long-Term Liabili6es, Revenue Bonds
Customer Deposits
Total Current Liabilities (Payable from Restricted Assets)
Total Current Liabili8es
Long-Term Liabilities, Excluding Current Portion:
Revenue Bonds
Notes, Loan Pool Agreement and Acquisition Contracts
Advances from Other Funds
Total Long-Tertn Liabilities
Total Liabilities
Contributed Capital:
Other Funds
Federal and State Grants
Developers
Property Owners
Other Govemmental EntiBes
Total Contributed Capital
Retained Eamings:
Reserved for:
Revenue Bond Requirements:
Debt Service
Sinking Fund - Term Maturities
Renewals and Replacements
Employees' Pension Benefits
Unreserved (Deficit)
Total Retained Earnings (Deficit)
Total Fund Equity
See accompanying notes to Financial Statements.
Water
and
Sewer Gas Solid Waste Recycling
Utility Utility Utiliry Utillty
$ 1,100,167
572,455
98,037
870,935 352,498 8,299
63,463 72,460 14,407
284,512 348,339 50,760
57,357
82,474
761,716
860,833 559,167
45,825
2,677,317 2,597,150
1,429,726
413,947 124,748
4,304,167 50,833
1,868,428 1,110,172
8,016,268 1,285,753
10,693,585 3,882,903
69,020,815 28,211,229
155,827
69,176,642 28,211,229
79,870,227 32,094,132
415,256 654,532
17,837,194
39,145,430
5,145,306 37,005
11,881,192
74,424,378 691,537
37,295
893,066 73,466
47,175
35,905
707,799
743,704 47,175
1,636,770 120,641
86,197
907,211
993,408
2,630,178 120,641
129,893 251,057 �
90,194
367 �
220,454 251,057
6,294,545
2,878,376
13,173,996 300,000
22,346,917 300,000
1,406,662 761,849 816,007 160,313
32,381,449 13,738,938 11,210,833 3,650,048
56,135,028 14,800,787 12,026,840 3,810,361
130,559,406 15,492,324 12,247,294 4,061,418
$ 210,429,633 47,586,456 14,877,472 4,182,059
76
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Page 2 of 2
Yacht
Basin Totals
Stormwater and Parking Harborview
UUUty Ma►ina System Center 2001 2000
254,388 222,843
25,358 12,353
103,323 40,486
55,999
18,402
56,385 445,519
11,961
49,197
1,944 117,155
2,760
3,311,034 2,972,077
772,457 314,381
876,617 1,222,740
155,394
138,473 82,474
8,858,319
137,501 138,019
764,476
4,262 1,424,262 1,355,463
138,715 1,902 146,125 369,862 226,030
521,784 351,985 272,634 562,674 7,950,076 15,169,503
369,566 1,846,467 116,883
165,262 4,502 744,364 790,774
120,000 21,310 4,496,310 4,272,314
3,686,399 3,576,707
654,828 25,812 10,773,540 8,756,678
1,176,612 351,985 298,446 562,674 18,723,616 23,926,181
7,197,267 116,677 104,545,988 108,109,035
468,843 563,956 1,274,823 466,368
189,215 1,096,426 1,075,976
7,666,110 189,215 680,633 106,917,237 109,651,379
8,842,722 541,200 979,079 562,674 125,640,853 133,577,560
18,704,249 1,301,092 758,880 13,926,554 36,141,513 35,257,014
1,345,000 19,272,388 17,977,388
87,462 207,918 39,440,810 37,767,308
232,002 5,414,313 5,657,767
2,980,793 376,125 15,238,477 14,171,402
23,117,504 1,533,094 1,135,005 14,134,472 115,507,501 110,830,879
� 35,326 6,329,871 6,329,871
2,878,376 2,875,664
13,473,996 11,789,356
35,326 22,682,243 20,994,891
� 275,320 108,335 102,766 3,631,252 2,972,954
(18,526) 2,116,635 6,509,157 (3,056,705) 66,531,829 59,902,728
256,794 2,224,970 6,647,249 (3,056,705) 92,845,324 83,870,573
23,374,298 3,758,064 7,782,254 11,077,767 208,352,825 194,701,452
, 32,217,020 4,299,264 8,761,333 11,640,441 333,993,678 328,279,012
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77
CITY OF GLEARWATER FLORIDA
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
F� M wn ^ ���Te��eee �n eRrfi ��JrTl.l f`�11��DARATIVF TnTALS FOR 2000
W8t@f
and
Sewer Gas Solid Waste Recycling
Utility Utllity Utility Utility
Operating Revenues:
Sales to Customers
Service Charges to Customers
User Charges to Customers
Rentals
Total Operating Revenues
Operating Expenses:
Personal Services
Purchases for Resale
Operating Materials and Supplies
Transportation
Utility Service
Solid Waste Dumping Charges
Depreciation
Intertund Administrative Charges
Other Curtent Charges:
Professional Fees
Advertising
Communications
Printing and Binding
Insurance
Repairs and Maintenance
Rentals
Miscellaneous
Data Processing Charges
Taxes
Provision tor Estimated Uncollectible Accounts
Total Other Current Charges
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues(Expenses):
Eamings on Investments
Interest Expense and Fiscal Charges
Amortization of Bond Discount and Issue Costs
Loss on Exchange of Assets
Losses from Writedowns and Replacements of Fixed Assets
Recycling Program Incentive Grant
Other
Income (Loss) Before Operating Transfers
Operating Transfers In
Operating Transfers Out
Net Income (Loss)
Retained Earnings (Deficit), Beginning of Year
Residual Equity Transfers In
Residual Equity Transfers Out
Retained Earnings (Deficit), End of Year
$ 35,109,081 28,935,853 797,713
455,554 1,287,762 15,511,855 9,726
102,577 1.411.068
35,564,635 30,223,615 15,614,432 2,218,507
6,845,608 3,573,543
7,305,983 15,249,937
1,857,035 167 ,417
701,150 420,633
1,555,980 66.218
4,920,586 1,141,666
4,919,420 1,668,640
1,080,187 156,747
410,950
93,318 161,185
5,584
232,360 93,970
2,010,560 482,332
43,609
196,105 78,230
363,451 287,322
1,926,674
175,393 170,274
4,151,374 3,816,877
32,257,136 26,098,931
3,307,499 4,124,684
3,848,458 774,181
(3,524,905) (1,491,895)
(273,511) (121.677)
(4,555)
72.904 204,043
122,946 (639,903)
3,430,445 3,484,781
(1,654,171) (1,014,804)
(1.654,171) (1,014,804)
i,ns,2�a 2,ass,sn
54,484,185 12,330,810
58,148
(183,579)
$ 56,135,028 14,800,787
See accompanying notes to Financial Statements.
78
4,408,765
27,538
208.295
2,683,758
54,386
4,553,562
445,666
1,175,290
27,601
5,837
48,078
140,220
63,723
1,690
27,418
123,410
54,931
492,908
14,050,368
1,564,064
625,826
(113,308)
(4,311)
105,445
157,400
771,052
2,335,116
(616,470)
(616,470)
1,718.646
10,308,194
12,026,840'
818,796
189,170
70,158
287,424
6,353
131,553
431,620
508
333
4,918
33,230
25,546
1,350
9,477
26,900
6,677
108,939
2,044,013
174,494
254,829
(684)
��� )
35,790
289,714
464,208
1,807
90,830
89,023
375,185
3,435,176
3,810,361
�i
�
�
' Yecht
Basin Totals
Stormwater and Parking Harborview
UUlity MaHna System Center 2001 2000
�
�J
5,011,354 1,667.563 71,521,564 81,622,034
30,468 168.560 17,463,925 16,313,751
52,264 3,870,439 5,436,368 4,990,061
1,093,300 10,559 1,952,813 3.056,672 2.880,505
5,041,822 2,813,147 4,049,558 1,952,813 97,478,529 85,806,351
� 1,504,608 727,692 712.539 18.591.551 16,876,283
1.327,201 7,001,316 25.101,145 18,869,250
70,085 76.531 58,163 17,299 2.518,983 2,189,866
520,517 8,015 57,553 11,539 4,690,589 4,081,598
� 150,428 38,881 136.282 2,008,528 1,820,571
4,553,562 4,455,706
1.075.362 201,562 238,140 568.946 8.723,661 8,540,339
1.063,530 198.130 802.770 5.320 10.264,720 9.640.300
� 142,926 15.892 686,902 774,579 2.885,342 2,633.052
12,980 1,272 29.941 461,313 394,652
16,004 23,380 13,613 21,078 387,574 348,665
2.432 4,832 12.848 8,846
, 26,440 13.650 12,760 28,353 580.983 527,199
37,402 48,131 20,870 43,929 2.732.493 2,280,648
1,080 171,440 1,191 220,360 177,233
141,504 48,158 6 14,883 516,781 417,639
' 60,910 27,420 26,910 916,323 788,610
354 16.329 1,943,357 1,272,168
24,355 2,592 434,222 232,889
449,541 194,477 933,773 937,707 11,085,596 9,081,601
4,683,643 2,884,036 2,841,819 2,678,409 87,538,355 75,655,514
� 358,179 (70,889) 1,207,739 (725,596) 9,940,174 10,150,837
271,755 131,782 278,465 6,185,296 3,788,635
(246,930) (18,445) (30,373) (85,010) (5,511,550) (5,652,095)
(6.125) (1.663) (402.976) (401,245)
(1.703) (6,479) (8,839)
(4,311) (5,716)
141,235 113,332
9,716 332,345 26,213 190 802,811 550,106
28,416 445.682 272.642 (86.523) 1,204,026 (1,615,822)
386,595 374,793 1,480.381 (812,119) 11,144,200 8.535,015
37,679 2,200,000 2,239.486
(656,667) (100,800) (4,133.742) (3.619.359)
(656.667) (63,121) 2.200,000 (1,894.256) (3.619.359)
(270,072) 311,672 7,480.381 1,387,881 9.249,944 4.915.656
597,586 1,913.298 5.245.909 (4,444,586) 83.870.572 78.954,917
58,148
(70,720) (79.041) (333.340)
256,794 2,224,970 6,647,249 (3,056,705) 92,645,324 83,870,573
79
� • : � _ • ; �7_1
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
c��rw� v�no ��incn ecor�n�acp �n 7001 WITH COMPARATIVE TOTALS FOR 2000
Water
and
Sewer
Utility
Cash Flows from Operating Activities:
Cash Received from Customers $ 35,041,248
Cash Payments to Suppliers (13,001,649)
Cash Payments to Employees (7,156,708)
Cash Payments to Other Funds (6,781,101)
Other Revenues �2�904
Net Cash Provided (Used) by Operating Activities 8,174,694
Cash Flows from Noncapital Financing Activities:
Operating Transfers In
Operating Transfers Out (1,745,042)
Grant Revenue
Interest Paid
Receipt of Cash on Loans to/from Other Funds 17,516,265
Payment of Cash on Loans to/from Other Funds (6,328,393)
Net Cash Provided (Used) by Noncapital Financing Activities 9,442,830
Cash Flows from Capital and Related Financing ActiviGes:
Principal Payments on Debt (5,081,722)
Interest Paid (1,175,148)
Acquisition of Fixed Assets (8,623,600)
Sale of Fixed Assets
Proceeds from Issuance of Debt 92�691
Payment of Bond Issue Costs
Retum of Contributed Capital
Capital Contributed by:
Other Funds
Other Governmental EntiGes 331,644
Property Owners 80,188
Developers 1,066,276
Net Cash Provided (Used) for Capital and Related Financing
Activities (13,309,671)
Cash Flows from Investing Activities:
Proceeds from the Sale and Maturity of Investments
Purchase of Investment Securities
Interest on Investrnents 3,780,051
Net Cash Provided by Investing Activities 3,780,051
Net Increase (Decrease) in Cash and Cash Equivalents 8,087,904
Cash and Cash Equivalents at Beginning of Year 23,431,484
Cash and Cash Equivalents at End of Year $ 31,519,388
Cash and Cash Equivalents:
Cash on Hand and in Banks $ 400
Equity in Pooled Cash and Investments 4,377,983
Restricted Equity in Pooled Cash and Investments 27,141,005
$ 31,519,388
See accompanying notes to Financial Statements.
�
Gas
Utillty
30,661,628
(18,199,201)
(4,081,589)
(3,025,696)
204,043
5,559,185
(1,014,804)
Solld
Waste
UUlity
15,528.987
(4,973,396)
(4,531,055)
(4,170,756)
157,400
2,011,180
(616,470)
105,445
Recycling
Utllity
2,237,754
(329,246)
(848,206)
(757,192)
303,110
1,807
(90,830)
35,790
(1,425,277) (263,525) 132,299
(2,440,081) (774,550) 79,066
(580,000) (44,460) (25,735)
(1,436,514) (77,403) (684) �
(2,685,571) (344,445) (364,432)
(4,702,085) (466,308) 390,851
774,181 625,826 254,829
774,181 625,826 254,829
(808,800) 1,396,148 246,154
4,049,402 4,649,221 1,149,604
3,240,602 6,045,369 1,395,758
700 200
1,654,149 5,337,370
1,585,753 707,799
3,240,602 6,045,369
1,395,758
1,395,758
�
r
Page 1 of 2
Yacht
Basin Totals
Stormwater and Parking Harborvlow
Utitity Marina System Center 2001 2000
4,995,111 2,813,269 4,052,828 1,961,097 97,291,922 85,104,451
(483,112) (1,675,618) (845,099) (2,017,633) (41,524,954) (33,810,821)
(1,523,273) (754,182) (728,743) (19,623,756) (19,635,946)
(1,573,247) (74,896) (917,719) (91,830) (17,392,437) (15.750,709)
9,716 332,345 26,213 190 802,811 550,106
1,425,195 640,918 1.587,480 (148.176) 19,553,586 16,457,081
37,679 2,200,000 2,239,486
�ses,ass� �ioo,aoo� �a,2s�,a�s� (s,s�s,sss�
910,073 1,051,308 113,332
(85,010) (85,010) (108,027)
41,900 15,000 17,573,165 8,413,204
886,656 (56,617) (991,391) (1,908,951) (9,955,199) (4,804,331)
1,107,260 (119,738) (949,491) 221.039 6.566,335 (5,181)
(198,528) (7,343)
(422,920) (18,445)
(2,735,034) (1,843,071)
447,487
(28,868)
(22,778) (18,904)
�3 � ��)
(54,T/3) (3,963)
81,166
710,081
(75,519)
(5,979,470)
(3,162,180)
(16,654,889)
81,166
1,250,259
(104,38�
(5,472,121)
(3,439,681)
(11,994,265)
54,323
7,775,392
(119,656)
(311,976)
934�633 934.633
359,306 690,950 455,829
80,188 106,185
1,066,276 226,075
(2,578,557) (934,226) 607,111 (22.86� (21,797.454) (12,719,895)
� 67,625
(2.378)
698,190 131,782 278,465 6,543,324 3,953,761
698,190 131,782 278,465 6,543,324 4,019,008
� 652,088 (281.264) 1.523.565 49.996 10,865,791 7,751.013
6,204,347 1,138,388 1,716,967 100 42,339,513 34,588,500
6,856,435 857,124 3,240,532 50,096 53,205,304 42,339,513
r
r
�
�
'
817 22,000 100 24,217 16,950
721,928 856.307 3.153,682 49,996 17,547,173 8,460,520
6,134,507 64,850 35,633,914 33,862,043
6,856,435 857,124 3,240,532 50,096 53,205,304 42,939,513
81
(Contlnued)
CITY OF CLEARWATER, FLORIDA
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS, Contlnued
YEAR ENDED SEPTEMBER 30, 2001 WITH COMPARATIVE TOTAL FIGURES FOR 2000
Reconciliation of Operadng Income (Loss) to Net Cash Provided
(Uaed) by Operating AcUvities:
Operating Income (Loss)
Adjustments to Reconcile Operating Income (Loss) to Net Cash
Provided (Used) by Operating Activities:
Other Revenue from Nonoperating Section of Income Statement
Depreciation
Non-cash Land Rental Exp
Provision for Uncollectible Accounts
Capitalized Laborand Interfund Charges
Construction in Progress Reclassified as Expense
Change in Assets and Liabilities:
(Increase) Decrease in Axounts Receivable
(Increase) Decrease in Amount Due from Other
Govemmental Entities
(Increase) Decrease in Inventory
(Increase) Decrease in Prepaid Expenses
Increase (Decrease) in Accounts and Contracts Payable
Increase (Decrease) in Deposits
Increase in Deferred Revenue
(Increase) in Net Pension Asset
Increase (Decrease) in Accrued Payroll
Total Adjustments
Net Cash Provided (Used) by Operating Activi6es
Water
and Solid
Sewer Gas Waste Recycling
Utility Utllity Utillty UUlity
�
�
�
�
r
$ 3,307,499 4,124,684 1,564,064 174,494 �
72,904 204,043 157,400
4,920,586 1,141,666 445,866 131,553
175,393 170,274 10,690 1,689
(118,491) (425,239)
146,004
(459,592) (386,647) (68,767) 24,235
(82,980)
(21,383) 136,974
(158)
432,097 (114,313) (3,346) 549
19,185 62,944 27,563
761,716
(249,100) (139,203) (149,514) (29,849)
32,730 22,286 27,224 439
4,867,195 1,434,501 447,116 128,616
$ 8,174,694 5,559,185 2,011,180 303,110
Noncash Investing, Capital and Financing Activitles:
Change in Fair Value of Investments $
Contributed Utilities from Developers
Contributed Land from Pinellas County Govemment
Contribution of Land to General Fixed Asset Account Group
Contribution of Asset from General Fixed Asset Account Group
Contribution of Debt from GLTDAG to Proprietary Fund
See accompanying notes to Financial Statements.
82
58,148
Yacht
Basin Totals
Stormwater and Parking Harborvlew
U81ity Marina System Center 2001 2000
ssa,i�s ��o,sas� �,2o�,�ss n2s,sss) s,sao,��a �o,�so,es�
9,716 332,345 26,213 190 802,811 550,106
1,075,362 201,562 238,140 568,946 8,723,681 8,540,339
136,128 136,128
24,355 382,401 229,472
(543,730) (470,737)
6,966 152,970
(as,�ii� s,ass �s2a,oa�� ��,�3s,�s��
(82,980) 300,821
12,080 127,671 (53,225)
(158) 267
15,993 192,188 (7,806) 515,362 563,450
122 510 (1,151) 109,173 137,069
2,760 764,476
(52,642) (18,995) (18,995) (658,298) (1,375,563)
33,977 (7,495) 2,791 111,952 (975,964)
1,067,016 711,807 379,741 577,420 9,613,412 6,306,244
1,425,195 640,918 1,587,480 148,176 19,553,586 16,457,081
79,041
12,394
83
79,041
12,394
58,148
(67,625)
338,172
922,900
T"his Page IntentionaJlyLeft Blarlk
84
r
�
r
�
��
INTERNAL SERVICE FUNDS
Internal Service Funds are utilized to finance and account for services and commodities furnished by a
� designated department to other departments within the City or to other govemments on a cost
reimbursement basis.
r
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.
Administrative Services Fund to account for various support activities including purchasing and data
� processing for all City departments. The cost for these services is
charged to user departments based on the cost of providing units of
senrice.
�
General Services Fund to account for various support activities including building maintenance,
� custodial, and radio communications for all City departments. 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
� managemenYs 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.
r
�
�
r
� 85
CITY OF CLEARWATER. FLORIDA
INTERNAL SERVICE FUNDS
COMBININCi BALANCE SHEET
SEPTEMBER 30 2001 WITH COMPARATIVE TOTALS FOR 2000
Assets
Current Assets:
Cash on Hand and in Banks
Equity in Pooled Cash and Investments
Accounts and Contracts Receivable
Due from Other Funds
Inventories, at Cost
Prepaid Expenses and Other Assets
Total Current Assets
Restricted Assets:
Interest Receivable
Total Restricted Assets
Advances to Other Funds
Net Pension Asset
Property, Plant and Equipment, Net of Accumulated
Depreciation
Liabilities and Fund Eauiiv
Current Liabilities:
Accounts and Contracts Payable
Accrued Payroll
Accrued Compensated Absences
Claims Payable
Due to Other Funds
Current Portion of Long-Term Liabilities:
Notes, Loan Pool Agreement and Acquisition ConVacts
Total Current Liabili6es
Long-Term Liabilities, Excluding Current Portion:
Advance From Other Funds
Notes, Loan Pool Agreement and
Acquisition Contracts
Total Liabilities
Fund Equity:
Contributed Capital - Other Funds
Retained Earnings:
Reserved for Employees' Pension Benefits
Unreserved
Total Retained Earnings
Total Fund Equity
See accompanying notes to Financial Statements.
86
Oarage
Fund
$
3,186,897
347,172
75,666
3,609,735
5,793
5,793
357,707
12,662,162
$ 16,635,397
$ 557,196
27,211
93,397
2,217,794
2,895,598
4,706,440
7,602,038
3,754,841
357,707
4,920,811
5,278,518
9,033,359
$ 16,635,397
Administrative
Services
2,050
789,173
77
217,748
1,009,048
�
632,965
2,664,125
4,306,138
27,527
57,947
272,893
300,000
266,287
924,654
571,070
493,408
1,989,132
49,722
632,965
1,634,319
2,267,284
2,317,006
4,306,138
Cieneral
Servlces
747,078
64,886
142
812,106
232,997
183,086
1,228,189
16,817
20,760
73,557
111,134
111,134
6,415
232,997
877,643
1,110,640
1,117,055
1,228,189
Centrel
Insurence
19,685,924
593,176
1,116,054
21,395,154
2,668,867
54,392
58,314
24,176,727
242,760
7,021
41,691
9,337,296
9,628,768
9,628,768
728,450
54,392
13,765,117
13,819,509
14,547,959
24,176,727
87
Totela
2001 2000
2,050
24,408,072
n
1,222.982
75,666
1,116,196
26,626,043
5,793
5,793
2,668,867
1,278,061
15,567,687
46,346,451
844,300
112,939
481,538
9,337,296
300,000
2,484,081
13,560,154
571,070
5,199,848
19,331,072
4,539,428
1,278,061
21,197,890
22,475,951
27,015,379
46,346,451
2,350
24,392,786
25
784,565
124,227
800,063
26,104,016
5,793
5,793
2,928,254
1,055,283
14,366,922
44,460,268
745,861
113,944
513,142
10,863,393
300,000
2,331,B66
14,888,206
900,000
3,867,148
19,655,354
4,513,102
1,055,283
19,236,529
20,291,812
24,804,914
44,460,268
CITY OF CLEARWATER, FLORIDA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
FISGAL YEAR ENDED SEPTE6"BER 30, 2001 WITH COMPARATIVE TOTALS FOR 2000
Operating Revenues - Billings to Departments
Operating Expenses:
Personal Senrices
Purohases for Resale
Operatlng Materials and Supplies
Transportation
Utility Service
Depreciation
Interfund Administrative Charges
Other Current Charges:
Professional Fees
Advertising
Communications
Printing and Binding
Insurance:
Premiums
Claims Incurred
Repairs and Maintenance
Rentals
Misc:ellaneous
Data Processing Charges
Taxes
Total Other Current Charges
Total Operating Expenses
OperaGng Income
Nonoperating Revenues (Expenses):
Earnings on Investments
Interest Expense
Gain on Sale of Assets
Other
Income Before Operating Transfers
Operating Transfers In
Operating Transfers Out
Net Income
Retained Eamings, Beginning of Year
Retained Eamings, End of Year
See accompanying notes to Financial Statements.
88
Garage Administretive
Fund Services
$ 8,398,485 7,499,258
1,850,143
2,120,987
55,921
3,536
91,130
2,619,015
215,080
243,692
24,727
247
212,650
597,366
1,671
13,150
116,130
5,548
1,215,181
8,170,993
227,492
163,294
(274,924)
374,760
144,462
407,592
635,084
649,127
649,127
1,284,211
3,994,307
$ 5,278,518
3,297,592
133,031
59,663
4,721
830,523
4,000
105,895
1,414,497
49,117
25,870
638,476
10,566
67,841
227,100
2,539,362
6,868,892
630,366
91,411
(107,555)
40
(16,104)
614,262
58,701
56,701
672,963
1,594,321
2,267,284
Totals
General CenUal
Services Insurance 2001 2000
2,857,028
1,408,748
226,469
78,832
349,621
29,413
47,279
224
14,800
550,826
13,073
16,337
37,890
680,429
2,773,512
83,516
69,938
3,039
72,977
156,493
156,493
954,147
1,110,640
10,152,309
430,234
4,588
8,648
2,354
91,320
11.601
1,475
6,810,036
573,879
10,520
1,150
25,269
15,070
7,540,320
7,986,144
2,166,165
2,326,568
2,326,568
4,492,733
472,739
(4,895,000)
(4,422,261)
70,472
13,749.037
13,819,509
�
89
28,907,080
6.986,717
2,120,987
420,009
150,679
445,472
3,481,305
219,080
440.907
1,498,104
51,063
7,063,356
1,171,245
1.199,822
• 26,460
122,597
396,190
5,548
11,975,292
25,799,541
3,107,539
2,651,211
(382,479)
374,760
147,541
2,791,033
5,898.572
1,180,567
(4,895,000)
(3,714,433)
2,184,139
20.291,812
22,475,951
27,652,555
6,866,799
2,093,505
730,481
183,168
388,426
3,373,380
139,600
648,794
950
1,069,310
46,590
5,691,550
3,343,928
994,457
21,274
182,763
362,670
4,923
12,367,209
26,142,568
1,509,987
1,643,476
(402,308)
185,490
119,367
1,546,025
3,056,012
318,865
318,865
3,374,877
16,916,935
20,291,812
�
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
�„�w� VCAQ CIi�1C1'1 CCDTFI1ApFR 9fl �nm �■�irH coll■PORATIVE TOTALS FOR 2000
Cash Flows from Operating Activities:
Cash Received from Other Funds
Cash Payments to Suppliers
Cash Payments to Employees
Cash Payments to Other Funds
Other Revenues
Net Cash Provided by OperaGng Activities
Cash Flows from Noncapital Financing Activities:
Operating Transfers In
Operating Transfers Out
Receipt of Cash on Loans to/from Other Funds
Payment of Cash on Loans to/from Other Funds
Net Cash Provided (Used) by Noncapital Financing Ac6vities
Cash Flows from Capital and Related Financing Ac6vities:
Principal Payments on Debt
Interest Paid
Acquisition of Fixed Assets
Proceeds from Issuance of Debt
Capital Contributed by Other Funds
Net Cash Used for Capital and Related Financing Activities
Cash Flows from Investing Activibes:
Interest on Investments
Net Cash Provided by Investing Activities
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
Cash and Cash Equivalents
Cash on Hand and in Banks
Equity in Pooled Cash and Investments
Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities:
Operating Income
Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities:
Other Revenue from Nonoperating Secdon of Income Statement
Deprecia6on
Change in Assets and Liabilities:
(Increase) in Accounts Receivable
Decrease in Inventory
(Increase) in Prepaid Expenses
Increase (Decrease) in Accounts and Contracts Payable
(Increase) in Net Pension Asset
Increase (Decrease) in Accrued Payroll
Total Adjustments
Net Cash Provided by Operating Activities
See accompanying notes to Financial Statements.
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Garage AdminisVaUve '
Fund Services
$ 8,398,485 7,499,258
(3,332,463) (2,130,280)
(1,941,922) (3,414,462)
�2aa,i�a� (ssa,o2��
144,461 40
2,980,383 1,371,535
649,127 58,701
(265,846) (380,448)
383,281 (321,747)
(274,924)
(3,674,254)
1,589,594
(2,359,584)
163,295
163,295
1,167,375
2,019,522
$ 3,186,897
$
3,186,897
$ 3,186,697
$ 227,492
144,461
2,619,015
48,562
32,632
(58,612)
(33,167)
2,752,891
$ 2,980,383
(493,359)
(107,555)
(571,156)
388,680
26,326
(757,064)
91,411
91,411
384,135
407,088
791,223
2,050
789,173
791,223
630,366
40
830,523
(51)
27,527
(110,982)
(5,888)
741,169
1,371,535
General
Services
2,857,028
(1,162,693)
(1,470,147)
(155,983)
3,039
71,244
(227)
(227)
(7,782)
(7,782)
69,938
69,938
133,173
613,905
747,078
747,078
747,078
83,516
3,039
29,413
(142)
16,817
(40,703)
(20,696)
(12,272)
71,244
Central
Insurance
10,152,309
(9�354,365)
(415,574)
(39,816)
342,554
472,739
(4,895,000)
138,561
(4,283,700)
(54,119)
(54,119)
2,326,568
2,326,568
(1,668,697)
21,354,621
19,685,924
19,685,924
19,685,924
2,166,165
2,354
(315,991)
(1,524,634)
(12,482)
27,142
(1,823,6111
342,554
91
Totals
2001 2000
28,907,080 27,652.555
(15,979,801) (14,717,745)
(7,242.105) (7,654.431)
(1,066.998) (1,064,827)
147,540 119,367
4,765,716 4,334,919
1,180,567 319,259
(4,895,000)
138,561 857,456
(646,521) (2,414,382)
(4.222,393) (1,237,667)
(493,359) (610,188)
(382,479) (402,307)
(4,307,311) (3,476,808)
t,978,274 604,779
26,326
(3,178,549) (3,884,524)
2,651,212 1,643,476
2,651,212 1,643,476
15,986 856,204
24,395,136 23,538,932
24,411,122 24, 395,136
2,050 2,350
24,409,072 24,392,786
24,411,122 24,395,136
3,107,539 1,509,987
147,540 119,367
3,481,305 3,373,380
(51)
48,562 1,230
(316,133) (222,959)
(1,447,658) 341,545
(222,779) (450,757)
(32,609) (336,874)
1,658,177 2,824,932
4,765,716 4,334,919
This Page In ten tionally Left Blank
92
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 containing approximately 1,461 active and
427 retired employees.
Firemen's Relief and Pension to account for the financial operation and condition of the Firemen's
Fund Relief and Pension Fund, closed to new members in 1962, containing 1
active and 51 retired members.
Police Supplemental
Firefighters Supplemental
Rehabilitation Loan Fund
Treasurer's Escrow Fund
to account for the financial operation and condition of a supplemental
pension plan funded by the State for sworn police officers.
to account for the financial operation and condition of a supplemental
pension plan funded by the State for firefighters.
to account for an expendable revolving loan fund providing grants and
low interest loans to qualified property owners to assist in redeveloping
older residential neighborhoods.
to account for the receipt, custody, and expenditure of funds held
temporarily in trust for other parties.
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FIDUCIARY FUNDS
COMBININa BALANCE SHEEf
SEPTEh"BER'^ '001 �•�ITH GOI�APARATIVE TOTALS FOR 2000
Assets
Cash on Hand and in Banks
Equity in Pooled Cash and InvesMenis
Managed Invesiment Accoun4s
Receivables:
Mortgage Loans (Net of Allowance for Uncollectible of $147,600;
Due Within One Year: $223,602 for 2001 and $65,349 for 2000)
Interest and Dividends
Rehabilitalion Advances
Due from Others
Total Receivables
Property Held for Resale
i iabilities and Fund Balances
Liabilities:
Accounts Payable
Due to Other Funds (Deficit in Pooled Cash)
Deferred Revenue
Deposits:
Property Owners
Developers
Other Miscellaneous Payables:
Special Purpose Funds
Consiruction Escrows
Other
Total Liabilities
Fund Balances:
Reserved for Employees' Pension Benefits
Unreserved-Undesignated
Total Fund Balances
Expendable
Trust Fund Agency Fund Totals
Pension Rehabilita- Treasurer's
Trust tion Loan Escrow
Funds Fund Fund 2001 2000
$ 15,594 15,594 31,565
4,710,065 180,536 4,890,601 208,812
429,353,416 429,353,416 526,529,519
4,493,208 4,493,208 4,569,664
2,295,165 2,295,165 2,302,415
60,731 60,731 76,724
8,034 31,358 39,392 104,704
2,303,199 4,585,297 6,888,496 7,053,507
84,701 84,701 84,701
$ 436,382,274 4,669,998 180,536 441,232,808 533,908,104
$ 448,314 448,314 482,760
126,854 126,854 146,883
25,475 25,475 25,475
21,944 21,944 21,944
15,558 15,558 15,558
37,502 37,502 37,502
8,097 8,097 8,397
129,404 129,404 26,352
134, 937 134, 937 162, 913
129,404 143,034 272,438 197,662
448,314 281,733 180,536 910,583 890,282
435,933,960 435,933,960 528,325,086
4,388,265 4,388,265 4,692,736
435,933,960 4,388,265 440,322,225 533,017,822
$ 436,382,274 4,669,998 180,536 441,232,808 533,906,104
See awompanying notes to Financial Statements.
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Assets
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PENSION TRUST FUNDS
COMBINING STATEMENT OF PLAN NET ASSETS
SEPTEII�BER 30, 2001 WITH GOMPARATIVE TOTALS FOR 2000
� Cash on Hand and in Banks
Equity in Pooled Cash and Investrnents
' Managed Investment Accounts, at fair value
Reoeivables:
fInterest and Dividends
Due from Others
� Total Receivables
Total Assets
� �
� Aocounts Payable
Due to Other Funds (Deficit in Pooled Cash)
� Total Liabilities
Net assets held in trust for pension benefits
� (a schedule of funding progress for
each plan is presented on page 47)
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C�
Defined Benefit Deflned Contribution
Penslon Trust Funds Penslon Trust Funds Totals
Employees' Firemen's Police Fireflghters
Pension Penslon Supplementel Supplemental
Fund Fund Fund Fund 2001 2000
2,635,350 2,074,715
407,850,442 2,098,311
15,594
15,594 31,565
4,710,065
9,940,614 9,464,049 429,353,416 526,529,519
2,187,446 10,775 47,887 49,057 2,295,165 2,302,415
8,034 8,034 67,133
2,187,446 10,775 47,887 57,091 2,303,199 2,389,548
412,673,238 4,183,801 10,004,095 9.521,140 436,382274 528,930,632
448,314 448,314 482,760
122,786
448,314 448,314 605,546
$ 412,224,924_ 4,1�� 10,� 9,5�� 435,933,960 528,325,086_
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CITY nF CLEARWATER_ FLORIDA
PENSION TRUST FUNDS
COMBINING STATEMENT OF CHANGES IN PLAN NET ASSETS
FISGAL YEAR EhDED SEPTEII�BER 30 2001 WITH GOII�PARATIVE TOTALS FOR 2000
Additions
Contributions:
Contributions from Employer
Contributions from Employees
State of Florida
Total Contributions
Investment Income:
Net Appreciation (Depreciation) in
Fair Value of Investments
Interest
Dividends
Less Investment Expenses:
Investment Management / Custodian Fees
Net Investment Income
Total Additions (Reductions)
Deductions
Benefits and Withdrawal Payments:
Benefits
Withdrawal Payments
Total Benefits and Withdrawal Payments
Income (Loss) before Administrative Expenses
Administrative Expenses
Net Increase (Decrease)
Net Assets Held in Trust for Pension Benefits:
Beginning of Year
End of Year
See accompanying notes to Financial Statements.
Defined Benefit Deflned Contribution
Pension Trust Funds Pension Trust Funds
Police Flrefighters
Employees' Flremen's Supplemental Supplemental
$ 4,255,484 1,098,990
4,855,064
12,000 658,179 541,465
9,122,548 1,098, 990 658,179 541,465
(98,649,085) 46,156 (2,336,469) (156,486)
11,209,739 451,372 108,028 272,445
2,072, 966 97,191
(85,366,380) 497,528 (2,228,441) 213,150
1,675,825 90,720 100,402
(87,042,205) 497,528 (2,319,161) 112,748
(77,919,657) 1,596,518 (1,660,982) 654,213
10,943,307 951,705 1,229,989 1,186,371
551, 943
11,495,250 951,705 1,229,989 1,186,371
(89,414,907) 644,813 (2,890,971) (532,158)
185,022 4,000 5,946 2,935
(89,599,929) 640,813 (2,896,917) (535,093)
501,824,853 3,542,988 12,901,012 10,056,233
$ 412,224,924 4,183,801 10,004,095 9,521,140
.�
Totals
2001 2000
5,354,474
4,855,064
1,211,644
11,421,182
(101,095,884)
12,041,584
2,170,157
(86,884,143)
1,866,947
(88,751,090)
(77,329,908)
14,311,372
551, 943
14,863,315
(92,193,223)
197, 903
(92,391,126)
528,325,086
435,933,960
97
5,466,579
4,868,278
1,392,513
11,727,370
63,322,299
12,365,395
2,249,697
77,937,391
2,065,152
75,872,239
87,599,609
12,540,926
515,433
13,056,359
74,543,250
87,113
74,456,137
453,868, 949
528,325,086
CITY OF CLEARWATER, FLORIDA
EXPENDABLE TRUST FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
FISCAL YEAR ENDED SEPTEMBER 30, 2001 WITH COMPARATIVE TOTALS FOR 2000
Revenues:
Intergovernmental Revenues:
Home Housing Rehabilitation Grant
Miscellaneous Revenues:
Earnings on Investments
Interest on Mortgage Loans
Other Miscellaneous Revenue
Total Revenues
Expenditures:
Economic Environment
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
Other Financing Uses:
Operating Transfers Out
Deficiency of Revenues and Other Financing Souroes
Over Expenditures and Other Financing Uses
Fund Balances, Beginning of Year
Fund Balances, End of Year
See accompanying notes to Financial Statements.
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Expendable Trust Fund
Rehabilitation
Loan Fund
2001 2000
$ 6,887
436
35,554
30
36,020
42,907
203,641
203,641
(160,734)
(143,737)
(143,737)
(304,471)
4,692,736
$ 4,388,265
84,250
130
41,866
41, 996
126,246
45,351
45,351
80,895
(140,243)
(140,243)
(59,348)
4,752,084
4,692,736
�`ITY OF CLEARWATER. FLORIDA
AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
F;�^�L ���� cwmcn CCDTC�IIRCR �f1 �nm
TREASURER'S ESCROW FUND
ssets
Equity in Pooled Cash and Investments
Liabilities
Deposits:
Property Owners
Developers
Other Miscellaneous Payables:
Special Purpose Funds
Other
Balance Balance
October 1, September 30,
2000 AddiUons Deductlons 2001
$ 208,812 168,854 197,130 1� 80,536
$ 21,944
15,558
8, 397 875 1,175
162, 913 167, 979 195, 955
21,944
15,558
8,097
134, 937
$ 208,812 168,854 197,130 180,536
See accompanying notes to Financial Statements.
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T"his Page IntentiorlaJly Left Blank
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GENERAL FIXED ASSETS ACCOUNT GROUP
� The General Fixed Assets Account Group is a self-balancing account group established to account for the
fixed assets of a govemmental unit which are not accounted for in an enterprise, internal senrice or trust fund.
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CITY OF CLEARWATER, FLORIDA
GENERAL FlXED ASSETS ACCOUNT GROUP
CCDTCpARFR 30 �g01 WITH COMPARATNE TOTALS FOR 2000
Schedule of General Fixed Assets:
Land
Buildings
Improvements Other Than Buildings
Equipment
Construction in Progress
Sources of Investments in General Fixed Assets•
General Fund Revenue
General Obligation Bonds
Revenue Bonds
Notes, Mortgages and Other Obligations
Special Assessments
Federal and State Grants
Gifts
Contributions from Developers
Undetertnined Investments Prior to July 1, 1954
See accompanying notes to Financial Statements.
102
2��� 200�
$ 35,595,531
41,796,262
87,510,362
40,825,183
759,064
$ 206,486,402
$ 162,541,308
6,297,870
6,685,490
4,496,562
2,012.192
9,530;732
6,303,643
7,539,143
1,079,462
$ 206,486,402
30,683,827
38,085,326
83,120,396
36,859,725
3,741,223
192,490,497
157,726,668
6,297,870
6,685,490
3,372,144
2,012,192
9,075,434
2,276,564
2,841,044
2,203,091
192,490,497
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SUMMARY OF OENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
SEPTEMBER 30_ 2001
Functlon Improvements Mechinery
end OtherThen end
Activity Totel Lend Bulldinqs Bulldings Equlpment
Fixed Assets Unallocated by Function
Qeneral Qovernment:
Legislative
Executive
Financial & Administrative
Legal
Planning
Comprehensive Planning
Other Oeneral Oovemment
� Public Safety:
Law Enforcement
Fire Control
Protective Inspections
� Emergency and Disaster Relief
Ambulance and Rescue Services
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Physical Environment:
Solid Waste / Reryling
Conservation and Resource Management
Other Physical Environment
TransportaGon:
Road and Street Facilities
Airports
Parking
Other Transportation Service
Economic Environment:
Employment Opportunity and Development
Industry Development
Housing and Urban Development
Other Economic Enviroment
Human Services:
Other Human Services
Culture and Recreation:
Libraries
Parks & Recreation
Cultural Services
Cultural Centers
Special Recreation Facilities
Total Qeneral Fixed Assets Allocated to Functions
Construction in Progress
Total Oeneral Fixed Assets
See accompanying notes to Financial Statements.
$ 34.325,399 9,968,038 9,026,559 14,475,504 855,298
25,166 25,166
640,801 1,528 639,273
1,179,515 9,679 1,169,836
256,966 2,106 254,860
6,285 6,285
22,435 22,435
26,812,065 6,404,795 17,057,319 214,541 3,135,410
28,943,233 6,404,795 17,070,632 214,541 5,253,265
12,960,341 588,945 1,122,868 305,477 10,943,051
6,652,368 103,395 19,552 6,529,421
245,265 11,432 233,833
450,005 88,482 361,523
1,481,635 12,254 104 1,469,277
21,789,614 588,945 1,338,431 325,133 19,537,105
59,445 43,505 15,940
105,155 81,052 24,103
569,218 (12,500) 1.042 523,506 57,170
733,818 (12,500) 1,042 648,063 97,213
71,604,842 9,420,850 4,264,980 57,073,614 845,398
531,092 90,251 439,866 975
1,394,945 35,988 1,358,957
792.160 171,262 236,253 384,645
74.323,039 9,456,838 4,526,493 59,108,690 1,231,018
14,629 14,629
2,089,530 1,396,655 16,901 636,715 39,259
1,322,207 329,835 293,682 589,295 109,395
34.738 33,125 1,613
3,461,104 1,759,615 310,583 1,226,010 164,896
62,379 3,179 59,200
14,801,054 2,416,234 72,834 12,311,986
25,317,257 7,429,800 6,423,996 10,256,082 1,207,379
1,704 1,704
56,997 993 28,489 27,515
1,911,740 681,299 1.151,837 78,604
42,088,752 7,429,800 9,522,522 11,509,242 13,627,188
171,401,939 25,627,493 32,769,703 73,034,858 39,969,885
205,727,338 35,� 41��796� 87 510 362 40� 1�
759,064
$ 206 486 402
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SUMMARY OF CHANOES IN GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
FISCAL YEAR ENDED SEPTEMBER 30. 2001
Qeneral Generel
Fixed Asseta Fixed Asaets
Functlon and Activiry 10/01/00 Additlons Deductlons 9/30/01
Fixed Assets Unallocated By FuncUon
General f3overnment:
Legislabve
Executive
Financial & AdministraGve
Legal
Planning
Comprehensive Planning
Other Oeneral Qovernment
Public Safety:
Law Enforcement
Fire Control
Protective Inspections
Emergency and Disaster Relief
Ambulance and Rescue Services
Physical Environment:
Solid Waste / Recyling
Conseroation and Resource Management
Other Physical Environment
Transporffition:
Road and Street FaciliGes
Airports
Parking
Other Transportation Service
$ 34,614,845 261,900 (551,346) 34,325,399
12,607 12,559 25,166
606,396 34,405 640,801
1,158,586 20,929 1,179,515
216,003 40,963 256,966
6,285 6,285
22,435 22,435
26,475,439 336,626 26,812,065
28,497,751 445,482 28,943,233
11,800,319 1,160,022 12,960,341
5,457,518 1,194,850 6,652,368
231,430 13,835 245,265
450,005 450,005
1,107,634 374,001 1,481,635
19,046,906 2,742,708 21,789,614
59,445 59,445
105,155 105,155
449,011 120,207 569,218
613,611 120,207 733,818
58,636,195 12,968,647 71,604,842
1,654,721 (1,123,629) 531,092
1,394,945 1,394,945
562,136 230,024 792,160
62,247,997 13,198,671 (1,123,629) 74,323,039
Economic Environment:
Employment Opporluniiy and Development 14,629 14,629
Indus6y Development 2,080,022 9,508 2,089,530
Housing and Urban Development 1,322,207 1,322,207
33,125 1,613 34,738
3,449,983 11,121 3,461,104
Human Services:
Other Human Services
Culture and Recreation:
Libraries
Parks & Recreation
Cultural Services
Cultural Centers
Special Recreation Facilities
Total
Construction in Progress
46,910 15,469 62,379
13,877,454 923,600 14,801,054
24,395,900 921,357 25,317,257
1,704 1,704
56,997 56,997
1,900,920 10,820 1,911,740
40,231,271 1,857,481 42,088,752
188,749,274 18,653,039 (1,674,975) 205,727,338
3,741,223 759,064 (3,741,223) 759,064
$ 192,490,497 19,412,103 (5,416,198) 206,486,402
See accompanying notes to Financial Statements.
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COMPONENT UNIT
CLEARWATER DOWNTOWN DEVELOPMENT BOARD
�. The Clearwater powntown Development Board (DDB) is created by City Ordinance but legally separate from
the City of Clearwater, and governed by a separate board. The DDB is accordingly reported as a discretely
presented component unit in the combined financial statements.
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CITY OF CLEARWATER. FLORIDA
COMPONENT UNIT
CLEARWATER DOWNTOWN DEVELOPMENT BOARD
BALANCE SHEET
cFpTE6"BER 30 2001 WITH COh�PARATIVE TOTALS FOR 2000
Assets
Equity in Pooled Cash and Investments
Amount to be Provided for Retirement of
General Long-term Debt:
Obligation Under Participation Agreement
Total Assets
Liabilities and Fund Balance
Accounts Payable
Participation Agreement Payable
Total Liabilities
Undesignated Fund Balance
Total Fund Balance
See accompanying notes to Financial Statements.
106
2001
$ 98,648
102,027
$ 200,675
i
$
102,027
102,027
98,648
98.648
$ 200,675
2000
68,675
109,875
178,550
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2,402
109,875
112,277
66,273
66,273
178,550
CITY OF CLEARWATER. FLORIDA
COMPONENT UNIT
CLEARWATER DOWNT0INN DEVELOPMENT BOARD
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDCiET ((dAAP BASIS) AND ACTUAL
FISCAL YEAR ENDED SEPTEMBER 30. 2001 WITH COMPARATIVE TOTALS FOR 2000
Revenues:
Taxes
Miscellaneous Revenues:
Eamings on Investrnents
Other
Total Revenues
Expenditures:
Current - Economic Environment
Total Expenditures
Excess (Deficiency) of Revenues Over Expenditures
Other Financing Sources (Uses):
2001 2000
Veriance
Favorable Actual
Budget Actuel (Unfevoreble)
$ 142,572 144,895 2,323 132,026
4,000 10,249 6,249 5,837
7,013 7,013 1,056
4,000 17,262 13,262 6,893
146,572 162,157 15,585 138,919
123,651 80,589 43,062 141,622
123,651 80,589 43,062 141,622
22,921 61,568 58,647 (2,703)
Operating Transfers In- Primary Oovemment 39,851 39,851 31,174
Operating Transfers Out - Primary Oovemment (89,699) 89 044 655 (49,022)
(49,848) 49,193 655 (17,848)
Excess (Deficiency) of Revenues and Other Financing
Sources Over Expenditures and Other Financing Uses (26,927) 32,375 59,302 (20,551)
Fund Balances, Beginning of Year 66,273 66,273 86,824
Fund Balances, End of Year $ 39,346 98,648 59,302 66,273
See accompanying notes to Financial Statements.
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SUPPLEMENTARY
INFORMATION
109
Page 1 of 4
CITY OF CLEARWATER. FLORIDA
CONTINUING DISCLOSURE - GAS SYSTEM REVENUE BONDS
SERIES 1996A, 1997A&B, AND 1998
SUPPLEMENTARYINFORMATION
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 senrice rates
at special rates and/or conditions as required to obtain/retain the customer load. Such contract service
must meet the normal construction feasibiliry formula to insure profitable payback to the City. As of
September 30, 2001, contract rates applied to 623 customer accounts and impacted less than 42.71% 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 pertormed 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 senrice and a modernized billing methodology.
The new rates, effective October 1, 1996, were designed to be industry-based and responsive to the
competitive energy challenges. The goal of the Rate Study was to establish rates which would be fair to
all classes of customers, provide funding to implement planned expansion in both existing northern
Pinellas County services area and into the newly acquired southwestern Pasco service area, and provide
an adequate growth potential in return to the City of Clearwater to further offset the ad valorem tax rates
(current impact is about .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.
110
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Page 2 of 4
CITY OF CLEARWATER. FLORIDA
CONTINUING DISCLOSURE - GAS SYSTEM REVENUE BONDS, SERIES 1996A
SUPPLEMENTARY INFORMATION
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Page 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 Ciry of
Clearwater. CGS operates over 630 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 78 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 15,500 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 Pinellas County service territory is 181 square miles and extends generally from
Ulmerton and Walsingham Roads on the South to the Pasco County line on the North and from the Gulf of
Mexico on the West to the Hillsborough County line on the East. This includes all of the Pinellas beach
communities south to Redington Beach. The Pasco County service territory is 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 O' 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 86% of our customer base.
112
CITY OF CLEARWATER, FLORIDA
CONTINUING DISCLOSURE - GAS SYSTEM REVENUE BONDS
SERIES 1996A,1997A&B, AND 1998
SUPPLEMENTARYINFORMATION
As of September 30, 2001 the System's active natural gas customers were located
as shown in the following table:
Location Meters
Belleair 334
Belleair Beach 104
Belleair Bluffs 19
Belleair Shores 18
Clearvvater 6,780
Dunedin 951
Indian Rocks Beach 57
Indian Shores 25
Largo 1,047
New Port Richey 126
North Redington Beach 9
Oldsmar 42
Port Richey 10
Redington Beach 1
Redington Shores 7
Safety Harbor 590
Tarpon Springs 913
Unincorporated Areas Pasco 506
Unincorporated Areas Pinellas 2,326
Total 13,865
Percentage
2.41 %
0.75%
0.14%
0.13%
48.90%
6.86%
0.41 %
0.18%
7.55%
0.91 %
0.06%
0.30%
0.07°/a
0.01 %
0.05%
4.26%
6.58%
3.65%
16.78%
100.00%
The following table shows the five largest interruptible customers by peak monthly
consumption and the percent of the System's revenues derived from such customers
during the 12 months ending September 30, 2001:
Customer Name
� Morton F. Plant Hospital
Metal Industries, Inc.
National Linen Services, Inc.
� Mease Hospital
Coca-Cola Foods
Peak Monthly
Therms
98, 975
82,788
86,317
59,270
22,961
% of Gross
Revenues
2.44%
1.52%
1.72%
1.43%
0.67%
� 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 ending September 30, 2001:
�
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Interruptible
Residential
Commercial
Average No.
Customers
�3
11,840
2,012
113
Gas
Volume
21.35%
16.01 %
62.64%
Page4of4
Gas
Sales
11.01%
24.03%
64.96%
Page 1 of 3
CITY OF CLEARWATER, FLORIDA
CONTINUING DISCLOSURE — WATER AND SEWER REFUNDING REVENUE BONDS
SERIES 1993 AND 1998
SUPPLEMENTARY INFORMATION
HISTORICAL FINANCIAL INFORMATION
WATER SYSTEM:
Source and Volume of Water Pumped
(in million gallons per day, averaged over the Fiscal Year)
FY Citv Welis Coun
1996
1997
1998
1999
2000
2001
3.528
3.448
3.140
3.070
3.047
3.067
10.901
10.412
11.540
12.094
11.528
11.260
Historical Growth in Number of Water Customers
(all figures are as of September of the year indicated)
Year Water Customers
1996 38,546
1997 38,294
1998 38,440
1999 39,931
2000 39,562
2001 40,167
Ten Largest Water Customers
Fiscal Year Ending September 30, 2001
Water Used
Name of User (in 100 Cubic Feet)
1. Church of Scientology 111,155
2. Morton Plant Hospital 70,627
3. Clearwater Housing Authority 59,210
4. AGH Leasing UP 47,493
5. Sheraton Sand Key 45,655
6. Pinellas County Schools 36,124
7. Lewis Real Estate, Inc 31,691
8. 880 Mandalay Ave, Inc. 30,590
9. Lane Clearwater UP 29,102
10. Countryside Mall 26.767
Total � �
114
Total
14.429
13.860
14.680
15.164
14.575
14.327
Revenues
Produced
$ 285,250
215,039
144,467
105,436
105,861
124,879
75,809
79,101
71,321
85.447
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CITY OF CLEARWATER, FLORIDA
Page 2 of 3
� CONTINUING DISCLOSURE — WATER AND SEWER REFUNDING REVENUE BONDS
� SERIES 1993 AND 1998
SUPPLEMENTARY INFORMATION
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SEWER SYSTEM Average Sewage Flow
Fiscal Annual Ave. Daily
Year Flow In MGD
1995 16.1
1996 15.8
1997 14.9
1998 17.9
1999 16.5
2000 15.4
2001 14.4
Historical Growth in Number of Sewer Customers
(as of September of the year indicated)
Fiscal Sewer
Year Customers
1995 32,787
1996 32,868
1997 33,017
1998 33,174
1999 33,383
2000 33,075
2001 32,933
Ten Largest Sewer Customers
Fiscal Year Ending September 30, 2001
Name of User
1. Church of Scientology
2. Morton Plant Mease Hospital
3. Clearwater Housing Authority
4. AGH Leasing UP
5. Sheraton Sand Key
6. Pinellas County Schools
7. Lewis Real Estate, Inc.
8. Lane Clearwater UP
9. Bay Aristocrat Village
10. Lake Starcrest Apartments Ltd.
Total
SewerUsed
(in 100 Cubic Feet)
88,710
67,644
58,807
46,865
38,920
36,110
31,691
26,434
25,320
23.611
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RATES. FEES AND CHARGES
Revenues
Produced
$ 243,955
243,889
156,320
122,937
102,215
143,804
83,000
69,421
66,058
61.766
$�
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
wate� 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 2001 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.
� 115
Page 3 of 3
CITY OF CLEARWATER. FLORIDA
CONTINUING DISCLOSURE - WATER AND SEWER REFUNDING REVENUE BONDS
SERIES 1993 AND 1998
SUPPLEMENTARY INFORMATION
Residential and October 1, October 1, October 1, . October 1, October 1,
Nonresidential Water Rates �9 � 1998 1999 2000 2001
Size of Meter Cubic Feet Gallons
Minimum- Under 1 inch 6.88 7.08 7.08 7.53 8.07
1 inch 15.48 15.93 15.93 17.57 18.83
1.5 inch 230.48 237.39 237.39 251.00 269.00
2 inch 534.92 550.47 550.47 584.83 626.77
3 or 2 inch manifold 825.60 849.60 849.60 901.09 965.71
4 inch 1,589.28 1,635.48 1,635.48 1,734.41 1,858.79
6 inch 4,081.56 4,200.21 4,200.21 4,455.25 4,774.75
8 inch 6,880.00 7,080.00 7,080.00 7,530.00 8,070.00
Additional charges are assessed for cubic feet of usage in excess of designated minimums.
Rates for Irriaation (Lawn1 Meters
Size of Meter
Minimum- Under 1 inch
1 inch
1.5 inch
2 inch
3 or 2 inch manifold
4 inch
6 inch
Sewer Rates
Size of Meter
Minimum- Under 1 inch
1 inch
1.5 inch
2 inch
3 or 2 inch manifold
4 inch
6 inch
8 inch
Per 100 cubic feet of water used over
that allowed in minimum
October 1,
1997
2.45
7.35
36.75
102.90
203.35
392.00
1,183.35
October 1,
1997
9.44
21.24
316.24
733.96
1,132.80
2,180.64
5,600.28
9,440.00
2.36
October 1,
1�
Cubic Feet
2.52
7.57
37.85
105.99
209.45
403.76
1,218.85
October 1,
1998
Cubic Feet
9.44
21.24
316.24
733.96
1,132.80
2,180.64
5,600.28
9,440.00
2.36
October 1,
1999
2.52
7.57
37.85
105.99
209.45
403.76
1,218.85
October 1, October 1,
2000 2001
Gallons
2.69 2.88
8.07 8.64
40.35 43.20
112.99 120.96
223.27 239.04
430.41 460.80
1,299.29 1,391.04
October 1, October 1, October 1,
1999 2000 2001
9.72
21.87
325.62
755.73
1,166.40
2,245.32
5,766.39
9,720.00
2.43
Gallons
10.38 11.10
24.22 25.90
346.00 370.00
806.18 862.10
1,242.14 1,328.30
2,239.86 2,556.70
6,141.50. 6,567.50
10,380.00 11,100.00
3.46 3.70
ADDITIONAL INDEBTEDNESS
Additional indebtedness of $92,691 was incurred for the lease purchase of capital equipment.
116
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CITY OF CLEARWATER. FLORIDA
CONTINUING DISCLOSURE — STORMWATER SYSTEM REVENUE BONDS
SERIES 1999
SUPPLEMENTARYINFORMATION
Rates, Fees, and Cha�aes
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 Rate Per ERU
January 1, 1991 $3.00
October 1, 1998 $4.00
October 1, 1999 $4• 17
October 1, 2000 $4.35
October 1, 2001 $4.54
January 1, 2002 $6.13
October 1, 2002 $7.16
October 1, 2003 $8.01
Octobe� 1, 2004 $8.65
October 1, 2005 $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 September 30.
1996 1997 1998 1 1999 2 2000
� Net Operating Revenues (Excluding
Depreciation) $412,283 $928,937 $325,376 $1,361,656 $1,622,157
Interest Income and other Non-
Operating Revenues (E�enses) 205,016 130,103 125,815 46,209 132,921
� Total Net Revenues $617,299 $1,059,040 $451,191 $1,407,865 $1,755,078
Maximum Annual Debt Service $520,974 $520,974 $520,974 $520,974 $520,974
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Coverage
1.18 2.03 .87 2.71 3.37
(1) From 1994 to 1998 total annual operating revenues have only increased from $3.40 to $3.46 million
while total operating expenses (excluding depreciation) have increased from $1.68 to $3.13 million.
With little undeveloped property in the City and no rate increase from the Utility's inception in 1991
until 1999, revenues remained flat while e�enses such as personnel services, professional fees,
interfund charges and repairs and maintenance have increased significantly. Rate.increases of
33.3% for 1999 and 4.3% for each subsequent year through 2003 were approved in August 1998.
In November 2001, to fund significant increases in the Stormwater System capital improvement
program, rate increases to $6.13 effective January 1, 2002; to $7.16 effective October 1, 2002; to
$8.01 effective October 1, 2003; to $8.65 effective October 1, 2004; and to $9.35 effective
October 1, 2005 were approved.
(2) The Interesi Income and Other Non-operating Revenues (Expenses) category amount for fiscal
1999 has been restated in the current year. Fiscal 2000 interest income and other non-operating
revenues (expense) of $132,921 was erroneously reported as fiscal 1999 in the above table for the
prior year (fiscal 2000) comprehensive annual financial report. The amount has been corrected
from $132,921 to $46,209, decreasing the fiscal 1999 debt service coverage ratio from the
previously reported 2.87 to 2.71.
117
CITY OF CLEARWATER. FLORIDA
FIRE SERVICES PROGRAM
SUPPLEMENTARYINFORMATION
Pursuant to agreements between the City of Clearwater, the Pinellas County Fire Authority and the Pinellas
Counry 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 Authorit�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 2000-01 for the Fire Department as a whole. Since the funding for the
Emergency Medical Senrices 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, 2001 are summarized below.
Total Revenue Received from Pinellas County
Fire Protection Authority
Total Fire Services expenditures for fiscal 2000/01
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No Equipment Reserve is currently being utilized with respect to the Fire Services Program.
118
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STATISTICAL SECTION
119
Fiscal
Year
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
CITY OF CLEARWATER. FLORIDA
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (a)
LAST TEN FISCAL YEARS
General Public Physical Economic
Government Safety Environment Transportation Environment
$ 7,008,971 $ 27,830,892 $ 1,434,840 $ 4,946,295 $ 1,041,651
7,043,042 28,743,633 1,428,177 4,625,720 704,023
6,944,313 30,348,800 1,461,345 4,485,318 1,104,261
7,100,253 32,230,932 1,368,074 4,727,961 1,971,488
8,422,146 32,473,158 1,448,830 4,935,058 2,074,079
9,143,485 35,014,716 1,593,525 4,950,263 2,435,633
10,149,047 36,269,061 1,926,168 5,017,921 3,046,352
10,457,801 38,489,701 318,590 6,755,168 2,817,419
9,126,217 41,362,225 2,245,047 5,091,703 2,319,156
9,486,088 42,442,045 2,221,979 5,401,902 2,466,515
(a) Includes operating and capital ouday expenditures of all govemmental funds, expendable trust funds and
component units.
Generai Governmental Expenditures By Function (a)
Fiscal Year Ending September 30, 2001
Human
Services
1%
Culture and
Recreatfon
15%
Economii
Environme
2%
Transp�
4'
Capital OuUay
33%
, 2%
120
al Debt
%
General
Government
8%
V
Human
Services
$ 436,002
656,016
637,739
760,196
693,940
794,432
893,812
934,791
633,960
699,699
Culture
and
Recreation
$ 12,127,429
11,941,403
12,190,549
13,172,327
13,582,796
14,459,550
15,059,753
16,300,735
16,932,942
18,301,610
Capifal
Outlay
$ 9,791,407
7,295,099
9,297,004
14,059,318
23.283,499
15,703,411
12,700,027
14,783,956
16,885,678
42,676,646
General
Debt
$ 1,393,674
1,520,301
1 �556,939
2,169,809
2,496,111
4,327,382
2,401,704
2,230,312
2.141,246
2,257,198
TABLEI
Reportlng
Entlty
Totels
$ 23,748,512
63,957,414
68,026,268
77,560,358
89,409,617
88,422,397
87,463,845
93,088,473
96,738,174
125,953,682
_ .. . . . ...... . ........ . _. .._ .._ . _ _
___. _..... .
_ _ .....
_ _ ... _ ...
_ , . _,. , ,....... __.
Mlllions ! Total;(�ieneral Governmental Expendltures
Last Ten f(scal Years (ej
i1
'' 1
1
i'' 1
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
_ _ _... _....
_
Fiscal Years
121
CITY OF CLEARWATER, FLORIDA
GENERAL REVENUES BY SOURCE (a)
LAST TEN FISCAL YEARS
Flscal Taxes Licenses
Year Property Franchises Uttlity and Permits
1992 $ 20,648,733 $ 4,716,532 $ 9,954,853 $ 3,267,159
1993 20,648,283 5,113,368 10,740,616 3,010,049
1994 21,339,664 5,518,732 11,831,565 3,047,814
1995 21,016,108 6,276,054 12,736,282 3,620,891
1996 21,189,640 7,082,847 13,351,613 2,937,586
1997 21,775,181 7,149,054 13,557,358 3,403,879
1998 22,367,192 7,451,564 14,630,119 3,406,987
1999 23,429,794 7,498,426 15,238,156 4,241,747
2000 26,219,674 7,743,009 15,242,594 5,432,799
2001 27,856,905 8,700,706 15,486,388 4,408,637
(a) Revenues are tfiose of all govemmental funds, expendable trust funds and component units.
(b) Includes Management Service fees charged by General Fund to Utilities System and other
Enterpri� Funds.
Utility T�
14%
Ucenses and
Permits
4%
Taxes - Franchises
8%
General Revenues by Source (a)
Fiscal Year Ending September 30, 2001
Fines and
Forfeitures Intergovernmental
2,� Revenue
Property Taxes
26%
122
scellaneous
7%
for
9s
�
Flnes and
Forfeitures
$ 1,709,010
1,765,097
1,822,424
1,756,680
1,736,731
1,592,702
1,598,936
1,989,510
1,921,448
2,015,067
Millions
1
1
1
1
Inter-
gov�nmentsl
Revenue
$ 16,554,256
17,533,919
16,118,364
19,814,366
20,617,058
23,744,019
24,615,308
26,551,416
26,073,855
33,105,406
Charges
ior
Miscellaneous Servicea (b)
$ 5,126,454 $ 5,601,203
3,159,785 5,505,849
3,632,962 5,523,544
3,838,285 5,695,288
4,430,681 6,289,164
4�593�352 7�564�833
5,532,108 7,677,873
3,260,380 8,127,038
3,996,658 8,476,001
7,028,322 9,378,667
Total General Revenues Last Ten Fiscal Years (a)
TABLE II
Total
$ 67,578,200
67,476,966
70,835,069
74,753,954
77,635,320
83,380,378
87,280,087
90,336,467
95,106,038
107,980,098
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Fiscal Years
123
Fiscal
Year
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
CITY OF CLEARWATER. FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Total
Tax Levy
$ 21,369,980
21,408,489
21,281,744
21,458,160
21,761,730
22,410,181
23,008,214
23, 951, 878
26,998,318
28, 664,112
Current
Coliections (a)
$ 21,075,554
20, 947,194
21,154,946
21,388, 692
21,675,311
22,281,502
22,856,951
23, 854,396
26,876,461
28,567,429
Percent Delinquent
of Levy Collections
Collected
98.62 % $ 109,316
97.85 199,638
99.40 603,226
99.68 159, 918
99.60 73, 731
99.43 80,253
99.34 129,690
99.59 226,812
99.55 106,800
99.66 77,716
(a) Collections are reported at the gross amount before any discount allowance.
124
Totai
Collections
$ 21,184, 870
21,146,832
21, 758,172
21,548,610
21,749,042
22,361,755
22,986,640
24, 081,208
26,983,261
28, 645,145
Percent
of Total
Collections
to Current
Levy
99.13 %
98.78
102.24
100.42
99.94
99.78
99.91
100.54
99.94
99.93
Outstanding
Delinquent
Taxes
$ 1,387,456
1,438,116
946,874
856,4d3
868,209
914,383
935,957
806,626
821,683
840,651
125
TABLE III
Percent of
Delinquent
Taxes to
Current Levy
6.49 %
6.72
4.45
3.99
3.99
4.08
4.07
3.37
3.04
2.93
Tax
Year
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
r,ITY OF GLEARWATER, FLORIDA
ASSESSED AND ESTIMATED ACTUAL PROPERTY VALUATIONS
LAST TEN FISCAL YEARS
Assessed Valuatlons (a)
Collection Non-Exempt Personal Other Total
Year Real Estate Property Property(b) Taxable
1992 $ 3,799,734,064 $ 379,338,740 $ 509,202 $ 4,179,582,006
1993 3,800,740,889 386,831,160 532,486 4,188,104,535
1994 3,789,902,836 390,841,880 569,338 4,181,314,054
1995 3,782,134,930 403,392,150 580,731 4,186,107,811
1996 3,820,217,710 431,622,230 592,909 4,252,432,849
1997 3,918,747,480 457,182,870 628,698 4,376,559,048
1998 3,999,483,300 493,752,640 1,026,819 4,494,262,759
1999 4,153,719,690 537,808,800 870,404 4,692,398,894
2000 4,353,493,520 549,051,160 934,183 4,903,478,863
2001 4,657,074,110 550,845,380 867,947 5,208,787,437
(a) Pinellas County Property 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.
126
TABLE IV
Percentages
Assessed
Total Totel Values to Yearly Increases
Exempt(c) All Estimated
Merket Taxable Total
$ 1,296,139,766 $ 5,475,721,772 100.0 6.9 % 6.1 %
1,317,255,941 5,505,360,476 100.0 0.2 0.5
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
127
CITY OF CLEARWATER. FLORIDA
PROPERTY TAX RATES ALL DIRECT AND OVERLAPPING GOVERNMENTS
(PER $1000 OF ASSESSED VALUES)
LAST TEN FISCAL YEARS
Fiscal
Year
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
City
5.1158
5.1158
5.1158
5.1158
5.1158
5.1158
5.1158
5.1158
5.5032
5.5032
Downtown
Development (a)
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
School
8.6260
9.0000
9.0820
9.3590
9.3290
9.1760
9.1330
9.1100
8.6660
8.4330
(a) A separate taxing district established by referendum which affects only downtown properties.
(b) Other includes Pinellas County Planning Council .0225; Juvenile Welfare Board .8117;
SW Florida Water Management District .4220; Pinellas Anclote River Basin .4000.
128
Coun
5.4950
5.4170
5.4290
5.5850
5.5140
5.5100
5.5380
5.5380
5.8540
6.0040
Transit
District
0.5893
0.5893
0.6697
0.6697
0.6697
0.6697
0.6697
0.6501
0.6501
0.6501
Emergency
Medical
Services
0.7000
0.7000
0.8500
0.8720
0.8060
0.7520
0.7410
0.7130
0.6470
0.7470
Operating
Debt Service
Road Capital Improvements
Comm. Redevelopment Agency
Total City Tax
2001
4.9732
0.1505
0.3452
0.0343
5.5032
�
129
Other
1.0964
1.1560
1.1820
1.4221
1.6308
1.6561
1.6561
1.6561
1.6572
1.6562 (b)
2000
4.9250
0.1623
0.3835
0.0324
5.5032
TABLE V
Total
22.6225
22.9781
23.3285
24.0236
24.0653
23.8796
23.8536
23.7830
23.9775
23.9935
TABLE VI
GITY OF CLEARWATER, FLORIDA
PRINCIPAL TAXPAYERS *
SEPTEMBER 30, 2001
Percentage
Type of Assessed to Total
Taxpayer Business Value * Assessed Value
Bellwether Prop. LP Ltd. Shopping Center $ 86,861,400 1.87%
Grand Reserve at Park Apartment Complex 25,528,600 0.55
Excel Realty Trust Inc. Shopping Center 24,834,100 0.53
Taylor, John S. III Landowner 24,352,900 0.52
Branch Sunset Association Ltd Shopping Center 23,147,800 0.50
Clearwater Land Co. Adult Congregate Facility 31,486,700 0.68
Sand Key Association Ltd. Hotel 21,774,500 0.47
Northwood Plaza Shopping Center 19,966,500 0.43
ZOM Bayside Arbors Ltd. Apartment Complex 19,032,900 0.41
Walmart Stores, Inc. Shopping Center 16,865,100 0.36
Sub-Total
All Others
Total
293,850,500 6.31
4,363,223,610 93.69
$ 4,657,074,110 100.00%
* Based on non-exempt real properly assessed taxable values.
Source: Pinellas County Property Appraiser, 2000 tax rolls for 2001 collections.
130
,
CITY OF CLEARWATER. FLORIDA TABLE VII
� RATIO OF NET GENERAL BONDED DEBT TO TAXABLE ASSESSED VALUE
AND NET BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS
1
Ratio of Net Net
� Texable Gross Net General General
Fiscal Assessed General Leas General Bonded Debt Bonded
Year Populatlon Velue (a) Bonded Sinkfng Bonded To Assessed Debt
(000) Debt Fund Debt Value Per Capita
� 1991 99,612 $4,124,564 $ 810,000 $242,050 $ 567,950 0.01 $ 5.70
� 1992 99,856 4,179,582 725,000 272,221 452,779 0.01 4.53
1993 100,768 4,188,105 635,000 286,522 348,478 0.01 3.46
� 1994 100,604 4,181,314 545,000 302,300 242,700 0.01 2.41
1995 101,162 4,186,108 450,000 316,403 133,597 0.00 1.32
� 1996 101,867 4,252,433 355,000 333,402 21,598 0.00 0.21
1997 102,472 4,376,559 255,000 90,000 165,000 0.00 1.61
' 1998 102,874 4,494,262 135,000 101,250 33,750 0.00 0.33
1999 104,281 4,692,398 0(b) 0 0 0.00 0.00
� 2000 104,454 4,903,478 0 0 0 0.00 0.00
2001 108,787 5,208,787 0 0 0 0.00 0.00
�
�J
r
r
�
�
� (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.
�r
131
CITY OF CLEARWATER, FLORIDA
RATIO OF ANNUAL GENERAL DEBT SERVICE TO EXPENDITURES - GENERAL
BONDED DEBT, GENERAL REVENUE CERTIFICATES, AND MORTGAGES AND NOTES
LAST TEN FISCAL YEARS
Fiscal
Year
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
Debt Service
General Obligation General Revenue
Bonded Debf Certificates
Principal Interest Principal Interest
$ 85,000 $ 43,445 $ 250,566 $ 365,516
90,000 38,610 270,486 346,251
90,000 33,615 297,058 325,441
95,000 28,816 523,631 (a) 575,865
95,000 23,114 476,857 910,321
100,000 17,580 2,111,736 (b) 829,555
120,000 11,280 368,269 655,292
135,000 3,915 391,454 628,462
0 0 216,120 608,062
0 0 227,222 595,008
(a) Includes 1995 Improvement Revenue Bonds, commencing with fiscal year 1995.
(b) Includes $1,600,000 defeasement of Community Redevelopment Agency Bonds, Series 1986.
132
TABLE VIII
Debt Service
as a Percentage
Mortgages Paying Total Governmental of General
and Notes Agent Fees Debt Expenditures Expenditures
$ 588, 787 $ 1, 629 $ 1,334, 943 $ 66, 011,161 2.0%
672,888 2,253 1,420,488 63,957,414 2.2%
730,456 2,018 1,478,588 68,026,268 2.2%
777,419 2,265 2,002,996 77,560,358 2.6%
983,793 4,049 2,493,134 89,409,617 2.8%
1,264,154 4,358 4,327,383 88,422,103 4.9%
1,239,805 7,058 2,401,704 87,463,845 2.7%
1,067,805 3,676 2,230,312 93,088,473 2.4%
1,308,349 8,715 2,141,246 96,738,174 2.2%
1,432,952 2,488 2,257,670 124,860,875 1.8%
133
TABLE IX
CITY OF CLEARWATER, FLORIDA
COMPUTATION OF LEGAL DEBT MARGIN
SEPTEMBER 30, 2001
Assessed Valuation of Non-Exempt Real Estate (a)
Times: Twenty Percent Limitation Per City Charter
Equals Legal Indebtedness Limitation
�_. . _ . �.-. -.�o u . .�
$4, 657,074,110
x 20%
$ 931,414,822
Net Debt
Gross Less Sinking Subject to
Debt Fund Assets Limitation
Revenue Bonds:
1985 Public Service Tax and Bridge Revenue Bonds $ 415,000 $ 171,947 $ 243,053
1998 Water and Sewer Revenue Bonds 49,900,001 4,439,422 45,460,579
1993 Water and Sewer Revenue Bonds 24,600,000 9,037,666 15,562,334
1995 Improvement Revenue Bonds 9,770,000 126,667 9,643,333
1996A Gas System Revenue Bonds 8,445,000 7,083 8,437,917
1997 Gas Sjrstem Revenue Bonds 12,865,000 40,833 12,824,167
1998 Gas System Revenue Bonds 7,930,000 2,917 7,927,083
1999 Stormwater system Revenue Bonds 7,395,000 95,455 7,299,545
2001 Infrastracture Sales Tax Revenue Bonds 46,445,000 0 46,445,000
Notes, Mortgages and Contracts 14,095,211 0 14,095,211
Totals $ 181,860,212 $ 13,921,990 $ 167,938,222
Legal Indebtedness Margin $ 763,476,600
(a) Valuation listed is from 2000 tax year for 2001 collections.
TABLE X
CITY OF CLEARWATER. FLORIDA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
SEPTEMBER S0, 2001
Net Debt
Governmental Unit Outstanding Percent Amount
City of Clearvvater $ 0 100% $ 0
Pinellas County School Board $ 46,960,000 14% $ 6,574,400
(a) Applicable Net Debt Percentage is based on ratio of City to County Taxable values for 2001 collections
($4,657,074,110 / $34,363,584,750).
134
�
'
u
�
�
�
'
,
,
�
r
�
,
r
r
r
�1
�
�
TABLE XI
CITY OF CLEARWATER, FLORIDA
WATER AND SEWER REVENUE BONDS COVERAGE
LAST TEN FISCAL YEARS
Net Revenues
Flscal Gross Avallabls for
Year Revenues (a) Expenses (b) Debt Service
1992 $ 30,366,487 $ 17,932,368 $ 12,454,119
1993 32,961,135 18,963,260 13,997,875
1994 32,529,074 17,824,720 14,704,354
1995 33,058,297 18,495,960 14,562,337
1996 34,814,929 22,311,433 12,509,496
1997 35,816.439 23,417,605 12,398,834
1998 36,311,233 24,608,494 11,702,739
1999 35,850,799 24,806,085 11,044,714
2000 37,406,823 25,882,873 11,523,950
2001 39,485,997 27,336,550 12,149,447
Debt Service Requirements Debt Service Coverage (c)
Flscal PrinclpaUSinking OHginally
Year Fund Inte�est Total Corrected Reported
1992 $ 2,405,000 $ 4,846,939 $ 7,251,939 WA 1.71
1993 2,580,000 3,023,838 5,603,838 WA 2.50
1994 2,880,000 3,916,263 6,796,263 WA 2.16
1995 3,760,000 3,380,470 7,140,470 WA 2.04
1996 3,990,000 3,186,295 7,176,295 1.74 1.51
1997 4,140,000 3,038,845 7,178,845 1.73 1.48
1998 4,305,000 2,869,738 7,174,738 1.63 1.38
1999 4,500,000 2,083,179 6,583,179 1.68 1.40
2000 4,705,000 1,581,403 6,286,403 WA 1.83
2001 4,920,000 1,358,690 6,278,690 WA 1.94
(a) Includes interest eamings and gross revenues of Water and Sewer Diviaions of UGlity System. 6ctraordinary
Gain is exduded.
(b) Excludes depreciation (and similar noncash expenses), amortization of bond discount and isaue costs, bond
interest, sinking fund and reserve requirements and extraordinary loas.
(c) Debt Service coverage has been corrected for an error in the calculation of Net Revenues Available for Debt
Service. The Bond required transfer of tunds for renewal and replacement were previously included in error in
the calcula6on for fiscal years 1996 through 1999.
Note: In April, 1993, the Cily issued $53,445,000 Refunding Revenue Bonds to finance the cost of refunding entirely
the series 1988A and 1988B bonds. In November, 1998, the Ciiy isaued $43,642,690 Refunding Revenue
Bonds to finance the cost of refunding enbrely the seriea 1988 bonds.
135
0
TABLE XI
CITY OF CLEARWATER. FLbRIDA
PUBUC SERVICE TAX BONDS COVERAGE
LAST TEN FISCAL YEARS
Total Pledged
Net Bridge Revenues Revenues
Utilitles Net Revenues Bridge Available
Fscal Service Gross Available ior Percentage for Debt
Year Taxes Revenues (a) Expenses (b) Debt Service Limitation (c) Service
1992 $ 9,954,853 $ 1,722,322 $ 719,416 $ 1,002,906 $ 465,908 $ 10,420,761
1993 10,740,616 1,774,796 622,657 1,152,139 465,480 11,206,096
1994 11,831,565 1,733,215 753,963 979,252 465,670 12,297,235
1995 12,736,282 1,777,247 1,194,167 583,080 463,708 13,199,990
1996 13,351,613 WA (e) WA (e) WA (e) WA (e) 13,351,613
1997 13,557,358 WA (e) WA (e) WA (e) WA (e) 13,557,358
1998 14,630,119 WA (e) WA (e) WA (e) WA (e) 14,630,119
1999 15,238,156 WA (e) WA (e) WA (e) WA (e) 15,238,156
2000 15,242,594 WA (e) WA (e) N/A (e) WA (e) 15,242,594
2001 15,486,388 WA (e) WA (e) WA (e) WA (e) 15,486,388
Debt Service Requlrements
PHncipal
Fiscal Sinking
Year Fund (d) Interest Total Coverage
1992 $ 410,000 $ 493,729 $ 903,729 11.53
1993 440,000 462,898 902,898 12.41
1994 475,000 428;266 903,266 13.61
1995 510,000 389,460 899,460 14.68
1996
1997
1998
1999
2000
2001
465,000
495,000
535,000
575,000
235,000
250,000
767,875
733,549
695,746
655,825
634,231
612,622
1,232,875
1,228,549
1,230,746
1,230,825
869,231
862,622
10.83
11.04
11:89
12.38
17.54
17.95
(a) Includes interest eamings and gross revenues of Toll Causeway Bridge Fund.
�b) Excludes depreciation (and similar noncash expenses), amortization of bond discount and issue costs, bond interest and sinking
fund and reserve requirements.
(c) Bridge Net Revenues are pledged for debt service requirements only to the extent of the 'Bridge Per�ntage' of requirements
pursuant to Secdon 16, Subsection A(2)(c) of Ordinance No. 3932-85 (51.554% of total debt service requirements for each
year).
(d) Reflects par value amounts of sinking fund inves#ments as well as serial principal retirements.
(e) 'The "Bridge Percentage' of the Public Service Tax and Bridge Revenue Bonds, Series 1985 was defeased on September 27,
1995.
Note: In August, 1985 the City issued $7,155,000 Public Servic� Taz & Bridge Revenue Bonds, Series 1985, to finance the cost of
refunding $3,290,000 Utilities Tax Bonds, Series 1977 and $6,060,000 Utilities Tax and Bridge Revenue Bonds, Series 1977,
and to provide funds for land acquisition and for a city-owned and operated parking garage. In February, 1995, the City issued
$10,720,000 Improvement Revenue Bonds, Series 1995, to finance the construcbon of a new police headquarters building and
related parking facilities.
136
Fiscal
Year
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
Gross
Revenues (a)
$ 11,586,605
12,562,105
13,316,619
13,672,905
16,423,147
17,779,715
19,438,030
18,772,104
21,533,228
31,211,839
� • :; i: - •; �.
GAS REVENUE BONDS COVERAGE
LAST TEN FISCAL YEARS
Expenses (b)
$ 8,116,051
9,364,981
10,220,164
10,555,346
13,199,962
14,124,064
14,975,445
14,701,728
16,462,986
24,575,414
Net Revenuss
Avallable br
Debt Service
$ 3,470,554
3,197,124
3,096,455
3,117,559
3,223,185
3,655,651
4,462,585
4,070,376
5,070,242
6,636,425
TABLE XI
Maximum Debt
Flscal Debt Service Requlrements S�vice
Year Principal Interest Total Coverage Cov�age(c)
�ss2 $ $ aea,o2o $ aas,o2o �.>>
1993 488,020 488,020 6.55 1.80
1994 488,020 488,020 6.34 1.74
1995 150,000 978,195 1,128,195 2.76 1.75
1996 240,000 1,052,923 1,292,923 2.49 1.81
1997 320,000 1,454,765 1,774,765 2.06 2.06
1998 455,000 1,379,358 1,834,358 2.43 2.05
1999 540,000 1,564,891 2,104,891 1.93 1.87
2000 560,000 1,543,494 2,103,494 2.41 2.33
2001 580,000 1,518,713 2,098,713 3.16 3.05
(a) Includes interest eamings and gross revenues from Gas System.
(b) Excludes depreaadon (and similar noncash expenses), amoRizadon of bond discount and issue costs,
bond interest, and reserve adjustments.
(c) Maximum Debt Seroice coverage is preaented for continuing discloaure on the Gas System Revenue
Bonds, and is based upon the maximum debt aenrice for all outstanding bonds and pariry bonds.
For fiscal 2001 the maximum debt service totals $ 2,176,810.
Note: In September, 1994, the Cily iasued $8,110,000 Gas System Revenue Bonds, Series 1994A, for additions,
extensions, supplements or replaoementa of the exisfing gas aystem 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 Counry and Pasco Counry, Florida, as well as supplements and
replacements of the existing gas system in Pinellas County, Florida.
During October 1997 the City isaued $ 7,895,000 Gas System Revenue Bonds, Series 1997A, for addidons
extensions, supplements, or replacements of the existing gas system within Pinellas and Pasco Counties.
Also during October 1997 the Ciry iasued $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 iasued $ 8,020,000 Gas System Revenue Bonds, Series 1998, to advance
refund the Gas Sjrstem Revenue Bonds, Series 1994A.
137
TABLE XI
(a)
(b)
��TY OF GLEARWATER FLORIDA
STORMWATER REVENUE BONDS COVERAGE
TWO FISCAL YEARS SINCE ISSUANCE
Net Revenues
Flscal Gross Avallable for
Year Revenues (a) Expenses (b) Debt Servlce
2pp0 $ 4,938,338 $ 3,183,260 $ 1,755,078
2001 $ 5,323,293 $ 3,608,281 $ 1,715,012
Debt Service Requirements
Fiscal PrinclpaUSlnking Debt Servlce
Year Fund Interest Total Co�era9e
2000 $ $ 185,225 $ 185.225 9.48
2001 $ 105,000 $ 399,593 $ 504,593 3.40
Includes interest earnings and gross revenues of the Stormwater Utility System. Extraordinary Gain is
excluded.
Excludes depreaation (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. Consequently
only 1wo years of data are available as of September 30, 2001.
TABLE XI
GITY OF CLEARWATER. FLORIQA
INFRASTRUCTURE SALES TAX REVENUE BONDS COVERAGE
FISCAL YEAR SINCE ISSUANCE
Debt Service Requirements
Fiscal Sales Tax PrincipaUSlnking Debt Service
Year Revenues (a) Fund Interest Total Coverage
2001 $ 8,385,149 $0 $0 $0 �b)
(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.
�b) First debt service payment due December 1, 2001, consisting of $991,844 interest payment.
Note: During June 2001 the Ciiy issued $46,445,000 Infrastructure Sales Tax Revenue Bonds 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 one year of data is
available as of September 30, 2001.
138
Year
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
Populetion(e)
99,856
100,768
100,604
101,162
101,867
102,472
102,874
104,281
104,454
108,787
CITY OF CLEARWATER, FLORIDA
DEMOQRAPHIC STATISTICS
LAST TEN FISCAL YEARS
Per Cepfta
Inoome(b)
$ 22,958
24,470
Not Availabls
22,789
24,696
26,050
27,311
28,367
30,633
31,658
Medlan School
Age(c) Enrollment(d)
42.3 11,921
42.3 11,584
42.9 10,043
42.2 10,284
42.1 11, 960
43.3 15,264
43.6 13,714
43.9 14,551
44.2 15,978
43.0 16,293
TABLE XII
Unemploy-
ment Rate(e)
5.4%
6.1
5.5
4.8
4.2
3.7
2.9
3.0
2.7
2.6
(a) 1992 - 2000, Universily of Florida, Bureau of Economic and Business Research; 2001 U.S. Bureau of the Census.
(b) Data is for the County, but should also approximate Clearwater levels.
1992 - 1994, Florida Trend Magazine; 1995-2001, Universily of Florida, Bureau of Economic Business
Research, Florida Stadsdcal Abstract.
(c) County level data, but should also approximate Clearwater levels. 1992, U.S. Bureau of the Census; 1993,
St. Petersburg Times Research Buresu; 1894, Sales and Marketing Mgmt, Survey of Buying Power; 1995-2001,
Universily of Florida, Bureau of Economic Research, Florida Statistical Abstract.
(d) Clearwater Planning Departrnent population pro rata esdmate of County School Board County level data for
public schools; 1992-2001, Pinellas CouMy School District.
(e) Data is for the Tampa/St. Petersburg MSA. 1992-1999 source of data is the Florida Bureau of Labor Market
Informatlon; 2000-2001, Universily of Florida, Bureau of Economic and Business Research, Florida Statistical AsVac
Note: Data is for an unspecified point in each year, not speciflcally September 30.
139
Flscal
Year
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
� : i 1 i � ■ � �
PROPERTY VALUE, CONSTRUCTION, AND BANK DEPOSITS
LAST TEN FISCAL YEARS
Commerclal Constructlon
Number of
Permlts Value
557 $ 32,765,807
1,693 42,051,081
1,831 37,164,437
1,775 77,486,099
1,898 42,360,262
1,702 49,385,937
1,455 54,732,371
1,690 48,849,409
2,698 176,010,021
2,267 152,059,409
Residential Construction
Number of
Permits Vatue
1,137 $ 25,956,314
3, 885 29,296,168
3,882 49,950,413
3, 747 53, 614, 754
4,224 26,854,040
4,172 75, 997, 890
4,978 47,045,558
5,544 95,713,246
5,573 30,814,807
5,390 34,084,137
(a) Includes institutional, church, seawalls, pools, and non-valued building permits.
(b) Pinellas County Property Appraiser, values listed are for year of collecGons.
(c) Includes balances in commercial, savings, and savings and loan banking institutions for Pinellas County.
Data from the Florida Bankers Association Branch Deposit Report of Florida Bank and Thrift Institutions.
140
TABLE Xill
Miscellaneous Constuctbn (a)
Number of Total Asaessed Bank D�osits (c)
Permits Value Properly Value(b) (In thousands)
5,940 $18,020,294 $ 5,475,721,772 $ 14,360,597
6,799 20,113,175 5,505,360,476 13,853,289
6,063 17,922,023 5,572,851,512 13,274,660
6, 827 28, 843,480 5, 641,202, 905 13,362,164
6,825 24,898,425 5,733,193,387 12,786,549
6,739 27,351,853 5,884,592,007 12,522,122
5,266 17,820,469 6,049,571,226 13,293,565
307 7,506,580 6,349,561,534 13,137,180
35 229,870 6,555,350,175 13,296,319
324 15,763,545 7,108,110,272 13,314,203
141
TABLE XIV
Date of Incorporation:
Town of Clearwater
Municipal Corporation
Form of Government
Fiscal Year
Population
U.S. Census
CITY OF CLEARWATER. FLORIDA
MISCELLANEOUS FACTS
SEPTEMBER 30, 2001
1930
1940
1950
1960
1970
1980
1990
2000
Value of Building Permits Issued in Fiscal Year 2000/01
Area:
Land
Water
Streets:
Paved
Unimproved
142
June 2, 1897
May 27, 1915
Commission - Manager
October 1 to September 30
7,607
10,136
15,581
34,653
52,074
85,170
98,784
108,787
$201,907,091
26.66 Square Miles
8.61 Square Miles
304 Miles
10.5 Miles
CITY OF CLEARWATER, FLORIDA
MISCELLANEOUS FACTS, CONTINUED
SEPTEMBER 30, 2001
Sanitary Sewers:
Sanitary Sewer Mains
Storm Sewer Mains
Treatment Plants
Daily Capacity
Water:
Mains
Accou nts
Fire Hydrants
Gas:
Mains
Accou nts
Police Protection:
Stations
Employees
Fire Protection:
Stations
Employees
Total Municipal Employees
Libraries:
Main
Branches
Collection
Marina
143
322 Miles
123 Miles
3
29 Million Gallons
523.3 Miles
40,167
4,009
653.4 Miles
15,529
8
409
7
187
1,796
1
4
534,096
209 Boat Slips
TABLE XIV
TABLE XIV
� _: � : •: �:
MISCELLANEOUS FACTS, CONTINUED
SEPTEMBER 30, 2001
Recreational Facilities:
Parks
Playgrounds
Golf Courses (Land Owned By City Leased to Others)
Beach
Baseball
Softball
Tennis
Basketball
Horseshoe
Soccer and Football
Handball
Swimming Pools.
Stadium
Neighborhood Recreation Centers
Community Recreation Centers
Special Recreation Facilities
Nature Centers
Scenic Vistas
Picnic Areas
Recreational Paths
Boat Ramps
Fishing Areas
Lawn Bowling
Shuffleboard
Fitness Courses
Disc Golf Courses
144
1,130 Acres
31
340 Acres
42 Acres
21 Diamonds
15 Diamonds
64 Courts
22 Courts
24 Courts
17 Fields
12 Courts
5 Pools
6,917 Seats
4
6
32
1
3
14
7.4 Miles
10
21
24 Rinks
61 Courts
8
2
SINGLE AUDIT /
GRANTS COMPLIANCE
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Grant Thornton �
'Accountants and Management ConsuFtants
' REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
ON COMPLIANCE WITH REQUIREVIENTS APPLICABLE
t TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
AND CHAPTER 10.550, RULES OF THE :'�UDITOR 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 "Ciry") with the rypes 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 Executi�•e Office of the Governor's State Project
Compliance Supplement that are applicable to each of its major federal programs and state projects for the
' year ended September 30, 2001. The City's major federal programs and 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, contracu and grants applicable to each of its major
' federal programs and 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.
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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 GovernmentAuditing 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.»0, Rules of the Auditors 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
state project occurred. An audit includes esamining, 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 on the City's compliance with those requirements.
In our opinion, the City, complied, in all material respects, with the requirements referred to above, that are
applicable to each of its major federal programs and state projects for the year ended September 30, 2001.
The results of our auditing procedures disclosed no instances or noncompliance that are required to be
reported in accordance �vith OMB Circular A-133 or Chapter 1�.550, Rules of the Auditor General.
'
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147
,
'
Internal Control Over Compliance
The management of the City is responsible f or 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 consideredthe City's internal
control over compliance with requirements that could have a direct and material effect on a major '
federal program or 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. ,
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 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.
�G�� i�.�,��-e-Y, ��..�
Tampa, Florida
February 14, 2001
148
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City of Clearwater, Florida
SCHEDULE OF EXPENDITURES OF FEDER.AL AWARDS
AND STATE FINANCIAL ASSISTANCE
For the year ended September 30, 2001
Federal Grantor/
' Pass-through Grantor/
Proeram Tide
FEDERAL AWARDS
� U.S. Department of Housing and Urban
Development (HLJD):
Communiry Development Block
� Grant - Entidement
Passed through Pinellas County:
Home Investment Partnerships Program
Passed through Clearwater Housing
' Authority:
Homer V171ac
Passed through Community Plannmg
and Development
' Twin Pond
Fair Housing Commumcation
Total U.S. Department of HLID
' U.S. Depanment of Justice:
Local Law Enforcement Block Grant
I.ocal Law Enforcement Block Grant
, L.ocal Law Enforcement Block Grant `99
Local Law Enforcement Block Grant '00
Local Law Enforcement Block Grant 'O1
' Weed and Seed Programs Official Site
Recognition
Weed and Seed FY '97
Weed and Seed FY '98
� Weed and Seed FY '99
Weed and Seed FY '00
Weed and Seed
Weed and Seed Enforcement
� Weed and Seed Asset Forfeiture '98
Weed and Seed Asset Forfeiture '99
Weed and Seed Asset Forfeiture '00
Weed and Seed Asset Forfeiture 'Ol
� Federal Forfeiture Sharing
Community Oriented Policing Services
(COPS) Universal Hiring Award
� COPS More '98
COPS Problem Solving
Bullet Proof Vests
� Bullet Proof Vests
Bullet Proof Vests
I �
CFDA/CSFA Grant
Number I.D. Number
14.218 B00-MC-12-002
14.239 M00-MC-12-0230
14.854 FI.29DEP0750199
14.246 B-00-$P-FI.-0088
14.401 FF204K954009
16.592
16.592
16.592
16.592
16.592
16.595
16.595
16.595
16.595
16.595
16.595
16.595
16.595
16.i95
16.595
16.595
N/A
16.710
16.710
16.710
16.607
16.607
16.607
97-LB-VX-2739
96-LB-VX-3470
98-LB-VX-2739
1999LB-VX-8125
2000LB-BX-0698
96-WS-QX-0003
96-WS-QX-0053
97-WS-QX-0028
98-WS-QX-0043
99-WS-QX-0039
2000-WS-QX-0041
97-WS-QX-0013
97-WS-QX-0028
98-WS-QX-0043
99-WS-QX-0039
00-WS-QX-0041
N/A
96-UM-WX-0784
1999-CM-WX-2879
97PR-WX-0543
990036227
00000868
01004247
� r 149
Program Federal
or Award Share of
Amount a Expenditures
$ 13,444,000 $ 735,266
3,206,914 13,100
385,346 85,657
1,295,000
10,000
18,341,260
274,031
252,490
316,739
308,250
224,497
35,000
71,092
175,000
175,000
175,000
175,000
43,322
100,000
100,000
50,000
50,000
113,297
1,275,000
1,079,571
90,856
4,016
3,464
2,941
5,094,566
1,295,000
6,000
2,135,023
150,708
158,405
50,499
159,122
50,000
25,027
254,872
384,401
2,941
1,235,975
City of Clearwater, Florida
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
AND STATE FINANCIAL ASSISTANCE - CONTINUED
For the year ended September 30, 2001
Federal Grantor/
Pass-through Grantor/
Program Tide
Federal Emergency Management Agency:
Passed through State of Florida -
Department of Community Affairs:
Ma�olia Street Dock
Humcane Georges
Humcane Irene
Total Federal Emergency
Management Agenry
Other Federal Assistance:
Passed through State of Florida -
Department of Justice
VOCA Grant
VOCA Grant
Environmental Protection Agenry:
Brownfield - Federal
Brownfield - Federal
Brownfield - Federal
Brownfield - Federal
Total - Other Federal Assistance
Total Federal Financial Assistance
Program Federal
CFDA/CSFA Grant or Award Shaze of
Number I.D. Number Amount a Expenditures
83.516 93-EO-2U-08-62-02-070 155,966
83.544 99-RM-05-08-62-02-276 289,452
83.544 00-RM-CGOS-62-02-0 2,188
436,606
16.575 V9150 36,121
16.575 V0164 34,910
66.811
66.811
66.811
66.811
34,398
8P-98405396-2 100,000 38,754
8P-98405396-1 100,000 -
V-984053-96-0 100,000 -
BL984872-99-0 500,000 31,741
871,031 104,893
$�4>7_4� 4�3 $�,475,891
o F , �", !'i(/
� GL � � � ,(�
� � ` G/1`�
� � � ��
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150
City of Clearwater, Florida
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
AND STATE FINANCE ASSISTANCE - CONTINUED
For the year ended September 30, 2001
State Grantor/ Program State
Pass-through Grantor/ CFDA/CSFA Grant or Award Share of Transfers to
Program Tide Number I.D. Number Amount a Ex�end� itures (bl Subrecipients (c)
STATE FINANCIAL ASSISTANCE
Department of Environmental Regulation:
Cooper's Pt Restoration
Passed through Pinellas County:
Solid Waste Reryc]ing Grant
Waste Tire Grant
Total Department Environmental
Regulation
Department of Community Affairs:
State Housing Initiative Partnership
(SHII')
Local Mitigation Strategy Funding
Tota1 Department of Community
Affairs
Department of Transportation (DO'1�:
T. Hangars
Declared Distance
Runway Overrun & Bam
Bluff to Beach Guideway
Master Plan Update
Total Deparrment of Transportation
Law Enforcement Division:
Projea N@ct Stop
Governor's Office of Tourism, Trade
and Economic Development:
Brownfield Grant
Brownfield - Remediation
Brownfield State Appropriation
Funding
Total Governor's Office of Tourism,
Trade and Economic Development
Department of State:
Folk Art Festival
Folk Art Festival
37.039 SP481
37.011 RE01-51
37.015 WT97-52
$ 50,000 $ 46,360 $
630,402 35,790
337,472 105.455
1,017,874 187,605
52.901 N/A 4,614,086 968,586
52.008 OOQ'-05-OS-62-02-2 22,012 18,180
4,636,098 986,766
55.004
55.004
55.004
55.014
55.004
WPIN40300619401
Contract AI076
WPI 402 99118401
WP 40298619401
FRN 408405-1-84-01
Contraa AI841
WPI40297918401
Contract AE263
16.579 O1-CJ J1-OS-62-02-0
31.011 V 984053-96-0
37.041 SP530
37.041 SP589
45.002
45.002
2K-0516
01-0501
151
550,000 357,062
20,745 7,525
175,000 69,954
150,000 150,000
59,964 28.567
955,709 643,108
78,500 39,688
600,000 32;004
300,000 168,458
500,000 92;536
1,400,000 292,998
6,821 -
7,503 7,503
44,137
44,137
City of Clearwater, Florida
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
AND STATE FINANCE ASSISTANCE - CONTINUED
For the year ended September 30, 2001
State Grantor/
Pass-through Grantor/ Ch'DA/CSFA Grant
Program Tifle Number I.D. Number
Department of Business and Professional
Regulation:
School Proximity Tobacco
Enforcement
Total State Financial Assistance
Total Expenditures of Federal Awards
And State Financial Assistance
79.003 00-00204-00
(a) Includes awards under prior year grants, which remain active.
(b) Funded with State Grants and aids Appropriations.
(c� State projects only.
152
Program State
or Award Share of Transfers to
Amount a Ex�enditures (b) Subrecipients (c)
28.652 25.436 -
$_ _�� _�,�SZ $ 2 183.104 $ ____�
$ ___,_ �,65�,995
�
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City of Clearwater, Florida
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
� AND STATE FINANCIAL ASSISTANCE
'
� Note 1- Basis of Presentation
Year ended September 30, 2001
� The above 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 1'rofit 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 general-purpose financial statements.
' Note 2 - CFDA/CSFA 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, 2001
SECTION I— SUMMARY OF AUDITOR'S RESULTS
Financial Statements
Type of auditor's report issued un ualified, qualified, adverse, disclaimer).
Internal Control Over Financial Reportin�
• Material weaknesses identified
• Reportable conditions identified that are not considered
to be a material weakness
Noncompliance material to financial statements noted.�
Federal Awards
Internal control over major programs
• Material weaknesses identified?
• Reportable conditions identified that are not considered
to be a material weakness
Type of auditor's report issued on compliance for major programs
un ualified, qualified, adverse, disclaimer).
Any audit findings disclosed that are required to be reponed in
accordance with Section 510(a) of Circular A-133?
Identification of major programs:
Federal Programs
CFDA Numbers
14.246
14.592
Yes
Yes
_Yes
Yes
Yes
_Yes
Name of Federal Program or Cluster
U.S. Department of Housing and Urban Development — Twin Pond
U.S. Department of Justice Local Law Enforcement Block Grant
State Project
CSFA Number Name of State Project
31.011 Brownfield Redevelopment Grant
52.902 State Housing Initiatives Partnership Grant
Dollar threshold used to distinguish between type A and type B
programs.
Auditee qualified as a low risk auditee for Federal single audit
purposes?
Auditee qualified as a low risk auditee for State single audit
purposes?
154
X No
X No
X No
X No
X No
X No
$300_,000
X Yes No
Yes X No
City of Clearwater, Florida
SCHEDULE OF FINDINGS AND QUESTIONED COSTS - CONTINUED
For the year ended September 30, 2001
SECTION II - FINANCIAL STATEMENT FINDINGS
NONE
SECTION III- FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
NONE
SECTION IV - STATE PROJECTS FINDINGS AND QUESTIONED COSTS
NONE
SECTION V - OTHER ISSLTES
� 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.
155
Accountants and Management Consultants
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Grant Thornton �
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MANAGEMENT LETTTER 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 City of Clearwater, Florida (the "City"), as of and for the
fiscal year ended September 30, 2001, and have issued our report thereon dated February 14, 2002.
We have issued our Independent Certified Public Accountants Report on Compliance and Internal Control
Over Financial Reporting dated February 14, 2002. Disclosures in this report, if any should be considered in
conjunction with this management letter.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America, and Government Auditing Standards issued by the Comptroller General of the United States.
Additionally our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the
Auditor General, which govern the conduct of local governmental entity audits performed in the State of
Florida and require that certain items be addressed in this letter.
The Rules of the Auditor General (Section 10.554 (1)(g) la.) require that we comment as to whether or not
inaccuracies, shortages, defalcations, fraud, and violations of laws, rules, regulations and contractual
provisions reported in the preceding annual financial audit report have been corrected. There were no
inaccuracies, shortages, defalcations, fraud, and violations of laws, rules, regulations and contractual
provisions disclosed in the preceding annual financial audit report.
The Rules of the Auditor General (Section 10.554 (1� (g) lb) require that we comment as to whether or not
recommendations made in the precedi� J annual financial audit repon have been followed. The current status
of the recommendations made in the preceding annual financial audit report are included under the heading
"Current Year Status of Prior Year Comments".
The Rules of the Auditor General (Section 10.554 (1) (g) 2.) require that we comment as to whether or not
the City has complied with Section 218.415, Florida Statutes, regarding the investment of public funds. The
City has complied with Section 218.41�, Florida Statutes.
The Rules of the Auditor General (Section 10.554 (1) (g) 3.) require disclosure in the management letter ot
any recommendations to improve financial management, accounting procedures and internal controls.
Recommendations for improvement are noted beginning on page 158.
Suite 3850
101 E. Kennedy Blvd
Tampa, FL 33602-5154
T 813.229.7201
F 813.223.3015
W www.grantthornton.com
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The Rules of the Auditor General (Section 10.554 (1) (� 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 may or may not materially affect the financial statements that were discovered
during the audit; there were no illegal or improper expenditures which may or 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.
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 powntown
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 & c.�, the scope of our
' audit included a review of the provisions of Section 218.503 (1), Florida Statutes, Determination of
Financial Emergenry. In connection with our audit, we deternuned 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.
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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,
2001, that was filed with the Department of Banking and Finance pursuant to Section 21832 (1) (a),
Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended
September 30, 2001.
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.
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Tampa, Florida
February 14, 2002
157
Accountants and Management Consultants
Honorable Mayor — Commissioner,
City Commissioners and City Manager
City of Clearwater, Florida
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In connection with our audit of the financial statements of the City of Clearwater, Florida as of
September 30, 2001, we noted certain matters that we believe you should consider. Our observations
were formed as a by-product of our audit procedures, which did not include a comprehensive review
for the purpose of submitting detailed recommendations.
The accompanying pages summarize our comments and suggestions.
We have previously discussed our comments and suggestions with various City personnel and would
be pleased to discuss them further.
�.71 G.v.-` � Cfl v��-p� L�{�
Tampa, Florida
February 14, 2002
Suite 3850
101 E. Kennedy Blvd
Tampa, FL 33602-5154
T 813.229.7201
F 813.223.3015
W www.grantthornton.com
Grent Thornton LLP
US Member of Grant ThorMOn IMernational
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, As the City's independent accountants, we are in a unique position to provide you with constructive
ideas and insights. Despite our close working relationship, we are, in fact, ouuiders to the City and
can therefore be objective in presenting to you our observations and suggestions. As stated in our
accompanying report letter, our comments relate to matters observed as by-products of our audit
' engagement, and are not based on a detailed study of all aspects of the City's operations. They are
offered in the hope that they will lead to a creative exchange of ideas that will result in meaningful
actions to benefit and strengthen the Ciry.
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CURRENT YEAR COMMENTS
INFORMATION SYSTEMS
PeopleSoft
Observation:
During our review of controls related to the use of PeopleSoft, we observed the following:
• Security could be strengthened for PeopleSoft user accounts. Currently, the required
minimum password length is two characters and the forced password change parameter is
not used. Additional PeopleSoft security parameters have not been invoked.
• A segregation of duties issue may exist within the Human Resources and Payroll
departments in which one individual can perform all the functions within the PeopleSoft
modules.
• The PeopleSoft audit trail log for changes to the production database (records; tables;
database) is not reviewed.
• A backup PeopleSoft administrator does not exist.
• A test database does not e�ust for the PeopleSoft application. Database or application
fixes, patches or modifications are made on the production data base ("on-the-fly").
• Tape backups are inadequate: daily backups are kept off-site for one day and weekly
backups are kept for one week.
Recommendation:
We recommend that the City consider implementing the following procedures:
• Establishing PeopleSoft user account parameters as follows:
o Minimum of six alphanumeric characters
o Passwords forcibly changed at an interval no greater than 60 days
o Password uniqueness set to ten
o Lockout invoked after five unsuccessful login attempts and require the system
administrator to reset.
o Conducting a review of user's access to the PeopleSoft application to ensure the
individual's security rights are commensurate with their position.
o Auditing of the PeopleSoft audit trail by management on a consistent basis to ensure
only authorized changes are being made to the production environment.
o Identifying an individual to act as the secondary PeopleSofr administrator and provide
the necessary training to that they can provide the required support, especially when
the primary cannot be contacted.
o Establishing a separate test database for the PeopleSoft application. Implementing
database or application modifications directly to the production (live) environment
could adversely impact PeopleSoft's production and potentially corrupt data. All
changes to PeopleSoft should be tested on a separate database and approved by
management prior to loading the modification to the production environment.
o Reviewing the PeopleSoft backup tape retention and rotation cycle. This review
should be performed as part of the overall backup schema review.
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INFORMATION SYSTEMS - Continued
Management Response:
Management concurs with the recommendation. We have already taken steps to address several of
the specific issues mentioned, including identifying and training a backup PeopleSoft
Administrator, managing the PeopleSoft audit trail, and making changes in the user account
parameters to include more controls.
Other specific issues related to the PeopleSoft system are being addressed as part of the planned
upgrade that the City is involved with. This upgrade from PeopleSoft version 7.5 to 8.3 will
include the addition of a separate Test environment for PeopleSoft, as well as the acquisition and
deployment of a Storage Attached Network (SAI� solution. This SAN soluuon will address the
concerns raised related to current back-up procedures and business continuity planning. It is
expected that once we have deployed the SAN solution, the upgrade project will be on track to
complete within six months.
SECURITY
� Observation:
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We observed that network monitoring tools are not currently being used to indicate potential
network attacks.
Recommendation:
To reduce the risk of unauthorized users gaining access to the network and/or applications, we
recommend a real-time firewall monitoring application (Intrusion Detection System) be
implemented as soon as possible. It is noted that a Cisco Securiry and Intrusion Detection device
has been purchased, which will provide the required network monitoring functionality.
Management should ensure the IDS has paging functionality to be able to notify the on-call
network administrator of possible network attacks.
Until the network intrusion detection system becomes operational, we recommend the current
practice of reviewing the Pix firewall logs approximately every two weeks be increased to twice a
week.
Management Response:
Management concurs with the recommendation. While the IT Department was originally planning
on purchasing a Cisco Intrusion Detection hardware solution, we instead purchased GFT's
software-based LanGuazd IDS solution. Additionally, we are deploying SNORT, a software-based
real-time network intrusion detection system that can be used to notify an administrator of a
potential intrusion attempt. It is expected that both of these solutions will be ready for
deployment by the end of April 2002.
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DATA PROCESSING POLICIES
Observation:
Current network backup and tape retention/off-site policies do not appear to be consistent across
operating platforms, applications or remote offices.
Recommendation:
We recommend a complete review of all network and operating system backup processes and the
corresponding backup tape retention/off-site storage policies be conducted so to ensure the
backup system is satisfactory to prevent a loss of data.
Leading best practices indicate that at a minimum:
• Daily backup tapes be maintained for a period of 14 days in a fire-proof container located
away from the server room (off-site preferred, but optional).
• Full weekly backups be kept off-site and be rotated (kept for no less than four weeks).
• Full monthly backups are kept for one year at an off-site location.
• Yearly backups should also be performed and kept off-site for any indefinite period of
ume.
• Backup tapes be periodically tested to ensure the data is readable.
Management Response:
Management concurs with the recommendation. A comprehensive review of all current back-up
and tape retention off-site policies is planned and is expected to be completed by the end of the
fourth quarter 2002.
DISASTER RECOVERY PLAN
Observation:
City management has acknowledged the importance of a disaster recovery plan (DRP) and is in the
process of finalizing and approving a DRP that addresses the recovery of critical operating systems.
It is critical for the City to have a complete disaster recovery plan for all critical applications and
network connectivity so to ensure a timely and successful network recovery in case of a disaster.
Without an accurate and documented recovery plan, the City is at risk of an untimely and
inaccurate system recovery, impacting production and/or the execution of critical financial
transactions.
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DISASTER RECOVERY PLAN - Continued
Recommendation:
We encourage the staff to continue their efforts to ensure the recently documented disaster
recovery plan is complete and approved by executive management.
Leading best practices state a disaster recovery plan should include (at a minimum) the following:
• Risk Assessment phase (identify and prioritize critical applications/functions)
• Definition of a"disaster" and who can declare a disaster
• Callout trees
� Documented hardware/software requiremenu and specifications
• Documented network and server configurauon requiremenu and recovery process steps to
restore critical applications in a timely manner
• Responsibilities of individuals during the recovery
• Designated recovery site(s) (hot versus cold site)
• User and vendor contact numbers
• A detailed disaster recovery test plan, outlining what is to be tested, the expected test results,
who will be involved (IT and/or users) and the process to document and analyze the test
results
• A process to periodically review the plan to ensure it is current
• Copies of the plan should be distributed to participants, stored at the off-site storage facility
with the backup tapes, and at the hot site, if used
Management Response:
� Management concurs with the recommendation. The City's IT Department has completed a
preliminary draft of the revised Disaster Recovery Plan (DRP). It is expected that this will be
finalized, approved by Senior Management and distributed by the end of May 2002.
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INTRANET
Observation:
Read access to the City's internal intranet is possible through the use of workstations located in the
, Ciry's libraries. The data on the intranet does not appear to be coniidential in nature nor if it were,
the state's sunshine law would still permrt such access, if requested.
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Recommendation:
We recommend management review the appropriateness of allowing non-Ciry employees access to
the intranet.
Management Response:
The City has resolved this issue and public access to the City's Intranet is no longer possible from
the City's public access computers in the City's libraries.
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NETWORK CONTROLS
Observation:
The IT depanment has implemented controls over their network, such as the firewall and the
incorporation of NAT to hide internal IP addresses, as a means to mitigate the risk of
unauthorized access from the `outside'. An additional control that can be implemented to reduce
the risk of an outside attack is the use of penetration testing.
Recommendation:
We recommend full penetration tests be performed on the City's entire network at least once a
year. Such penetration tests and subsequent reports can indicate vulnerabilities of the firewall and
network, the inherent risk(s) of the vulnerability and the necessary steps to control the risk of the
vulnerability.
Management Response:
Management concurs with the recommendation. However, at this time, budget constraints prevent
annual penetration testing. This issue will be addressed as resources allow.
COMPUTER SYSTEM USAGE POLICIES
Observation:
The City has documented computer, email and Internal usage policies that are available on the
intranet for review. However, not all City departments require that a new employee acknowledge
acceptance and understanding of the policies.
Recommendation:
We recommend the IT depanment work in conjunction with Human Resources to ensure that all
new employees are required to acknowledge acceptance of electronic usage policies. Alternately,
IT on a yearly basis can email a':'. users a reminder of the electronic usage policies and request an
email delivery receipt.
Management Response:
Computer, e-mail and Internet usage policies are reviewed and employee acceptance is facilitated
during new employee orientation that every employee is required to attend. Additionally, all
computer usage policies are posted on the City's Intranet and are accessible to all employees with
Internet access.
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SYSTEM ACCESS
Observation:
The City does not currently review user access on a regular basis.
Recommendation:
We encourage a yearly review by data owners (management) of user access to their applications,
libraries and files. A review of user access righu to data owners files reduces the risk of
unauthorized access to data by former employees or contractors, or individuals that have changed
positions. Thus, we recommend that IS review user security groups and security levels with the
corresponding data owners for appropriateness on a semi-annual basis.
Management Response:
Review of user access to departmental applications libraries and files is conducted on an ongoing as
needed basis. The city will evaluate the recommendation to develop bi-annual reviews.
CISCO ROUTER
Observation:
There is no redundancy for the MSBWAS Cisco router 3640. If this router fails, remote sites will
not be able to access the primary data center or Internet.
Recommendation:
We recommend that if this router is deemed critical, that management obtain a backup device or
contract with a service provider to guarantee the replacement of the router within a specified time
period.
Management Response:
Management concurs with the recommendation. This issue will be addressed as resources allow.
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ESTABLISHMENT OF AN AUDIT COMMITTEE
Observation:
The City does not have an Audit Committee.
Recommendation:
Many organizations have formed audit committees of their governing board and have found that
such committees have made a significant contribution. We strongly recommend consideration be
given to establishing such an Audit Committee of the City Commissioners.
The Commissioners have broad responsibility for the direction of the operational and business
affairs of the City. The discharge of this responsibility is accomplished through designation of
administrative officers and policy guidance given to such officers. However, the commissioners
likewise have an important responsibility for the quality of the organization's financial reporting.
The primary role of an audit committee is to plan for, evaluate and meet with the independent
auditors.
Management Response:
Consideration will be given to establishing an Audit Committee of the City Commissioners during
the current fiscal year.
RECENTLY ISSUED ACCOUNTING STANDARD
Observation:
Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements And
Management's Discussion and Analysis For State and Local Goz,�ernments ("GASB 34'� is effective for the
City's fiscal year beginning July 1, 2002. GASB 34 will require substantial changes to the City's
financial statements and accounting records.
Recommendation:
The City should begin developing a plan for implementation of GASB 34 so that changes to the
City's accounting records and budget process can be made by the required implementation date.
Management Response:
Planning for the current year implementation of GASB 34 is currently in process.
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FUND BALANCES
Observation:
The City Commission currently requires that the General Fund maintain an unreserved fund
balance of a minimum of 8% of the prior year expenditures.
Recommendation:
We recommend that consideration be given to establishing minimum fund balance requirements
for other types of governmental funds as well.
Management Response:
The establishment of m;n;mum fund balance requiremenu for governmental funds other than the
General Fund will be taken into consideration during the fisca12003 budget process.
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CURRENT STATUS OF PRIOR YEAR COMMENTS
INFORMATION SYSTEMS
Strategizing for eCommerce
The City is evaluating the development of eCommerce strategies to enhance business processes as
well as the services provided by the City. We commend the City on recognizing the need to
formulate an eCommerce strategic plan and for developing an Information Technology
Governance Committee. Within the government sector, cities and counties throughout the state
have started to design and implement eCommerce plans that provide consumers and businesses
the ability to purchase or renew permits and licenses, pay library finds, place deposits for animal
adoption, pay water bills and other tasks.
We recommend that the City continue to formalize its eCommerce strategy. We further
recommend that the Ciry address technology standardization and technology planning (e.g.,
planning for hardware and software obsolescence) within iu Information Technology Governance
Plan as technology.
Standardization will enable the City to implement eCommerce solutions in a cost-effective manner.
Technology standardization and planning across the City will also reduce total costs of technology
ownership.
Management Response
Strategies for eCommerce will be developed for each individual department/business operations
within the City and prioritized based upon need/demand and the potential cost/benefit of each
application. The Information Technology department will partner with each department to
develop a technology plan that will identify technology opportunities, resource requirements and
establish priorities to guide budget planning for each business operation.
Current Status
Implementation is currently in progress.
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, The City is in the process of evaluating ERP systems that would replace core Information
Technology processing functionality in its separate financial applications. An ERP system may
allow the City to reduce complexiry in its Information Technology environment and ultimately
reduce support and technology costs (e.g., backup and recovery, disaster planning, systems
� administration,etc.). Current generation ERP systems typically offer eCommerce functionality
(e.g., eProcurement), which also may provide opportunities for the City. We further recommend
that the City follow a formal systems selection methodology to ensure that the ERP system meets
� the City's needs (e.g., serviceability, scalability, maintainabiliry, etc.). A formal selection
methodology should provide for identification of critical success factors, key performance
indicators, ROI targets, etc.
� Management Response
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The City will use the RFP (request for proposal) process to evaluate RTP system solutions for its
financial applications. The thoroughness of the process is deternuned by the detail and scope of
the request, as well as the level of research performed prior to its issuance. The use of a third party
consultant to assist the City through the process of evaluating and selection is being contemplated
by the Information Technology and Finance departments. An ERP system represents the
operational "ideal" in Information Technology system solutions, however, implementation cost,
maintenance, operational change, serviceability and cost of ownership are all significant factors that
must be contemplated by the organization. While an ERP solution may simplify the Information
Technology environment, such a system will require significant change in management and
adjustment within departmental operations and employee skill development.
Current Status
� Funds for implementation of this recommendation are not currently budgeted.
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PROGRAM CHANGE CONTROLS
We noted that documentation addressing the program change procedures and documentation that
provides for evidence of program change testing, appro�al and authorization are informal or do
not exist. Though the Ciry does not make changes to application source code, formal policies and
procedures that address upgrade processes, documentation standards and evidence of approval,
testing and authorization of changes, should be developed and maintained.
We recommend that the City design an overall program change policy and methodology and
develop platform and application-specific detailed procedures consistent with this methodology.
Detail change procedures should address both vendor provided upgrades/patches as well as
"customizations" (including modifications to queries, database tables, application dictionaries, etc.).
Processes should cover initiation, development, testing, installation of vendor-provided code, and
implementation of changes as well as procedures for installing vendor-provided code.
Management Response
The City's current inability to develop and maintain a formal Change Control Program is largely
due to a lack of committed resources for its systems operations. Two of the three major financial
systems (ROSS and UMS) do have a viable test environment within which to test and approve
vendor upgrades and patches. As a rule, the Ciry has not invested in highly customized
applications and rarely makes such requests to the vendor. Change of control for the LJMS system
is well documented by the owning department (Utility Customer Service) and upgrades/patches for
the ROSS financial application are seldom received since this is an older, fully mature product with
a m;r,�r„um of customization. The Information Technology department will review current change
control procedures for each system and establish uniform standards and procedures for each.
Current Status
Implementation is currently in progress
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PEOPLESOFT LTPGRADES
During our review, we noted that PeopleSoft upgrades are installed, untested, in the People Soft
production environment. Per discussion with the PeopleSoft Administrator, this has, on occasion,
resulted in data corruption requiring the City to take actions to restore the application and data to
its previous state (e.g., from system backups).
Software vendors with a widely installed client base attempt to develop and market trouble free
application software and upgrades. Although vendors such as PeopleSoft conduct extensive
testing, they cannot be expected to ensure trouble free operation in all Information Technology
environments due to the complexity and uniqueness of each software installation. Therefore,
upgrades/patches that have not been independently tested by the City in a test envirorunent that
models the City's specific production environment (hardware, operating system, database software,
etc.) can result in:
• Unstable code
• Incompatibilities with current hardware and software
• Unexpected consequences or unintended results
• Data corruption
• Inaccurate results, reports, calculations
• High volumes of urgent trouble tickets (requiring Information Technology staff to
dedicate immediate resources to resolving issues that would otherwise be avoidable)
Management is aware of the exposure but has been unable to implement a test environment due to
budgetary constraints. We recommend that the City consider the risks/exposures identified above,
as well as the cost/benefits if implementing test environments for all of its critical applications.
Mana�ement Response
Management concurs with this recommendauon, however, at this time the City is uncertain of its
future relationship with PeopleSoft. It is not likely that a significant investment in improvemenu
to this system will be made until consensus is reached on the long-term future of this system
application.
Current Status
The City has purchased the licenses to upgrade to Version 8.3 of PeopleSoft and will address the
stated recommendations during this upgrade.
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USER ACCESS CONTROLS
Documentation of user access processes does not exist within the organization. The
documentation of user access processes and controls helps to not only ensure that controls are in
place and working as designed, but it also helps to ensure that business processes are not
interrupted in the event of application administration turnover. We recommend that the City
document formal policies and procedures that address user access controls. The documentation of
such controls should address procedures for granting, modifying and ternunating user access. In
addition, formal policies and procedures should be documented to address continuous monitoring
of user access.
ManaQement Response
More formal access control procedures for the other core financial applications will be
documented over the next twelve months.
Current Status
Implementation is currently in progress.
PLATFORM SECURITY
Management has committed resources over the past year to develop security around the
Information Technology processing environment. Management has also invested in the necessary
equipment for more secure remote access services. We commend management for working to
enhance the security of the City's Information Technology infrastructure, and we encourage
management to continue their efforts.
During our review, we noted that UNIX securiry settings on production servers may expose their
servers to unauthorized access. For example, certain enabled UNIX services (e.g., finger) are
inherently risky as they may disclose information about the City's users or its network to
unauthorized users and alloa- �or exploitation of the City's network and information resources.
Currently enabled services (e.g., echo, daytime and chargen) also may expose production services
to denial of service attacks.
As the City continues to enhance its security posture, we recommend that the City review its
UNIX security environment and take actions to further enhance the security of its production
systems as well as ensure that UNIX administrators are appropriately trained to understand the
implications of security configurations and to identify potential exposures related to systems
configuration. Specifically, we recommend that the City evaluate tJNIX services that are enabled.
If no business justification exists for these services, they should be deactivated. We further
recommend that the City conduct periodic UNIX security review and run software tools (e.g.,
COPS, SATAI� on production servers to detect and correct wlnerabilities. The City also may
wish to consider purchasing software tolls (e.g., security scanners, real time security monitoring
tools) to facilitate security reviews and/or proactively detect vulnerabilities in its network
environment.
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PLATFORM SECURITY - Continued
Mana�ement Response
Management concurs with this comment and will continue to improve platform and network
security within the resources provided. The Information Technology department will continue to
implement and utilize the functionality of recently acquired network management tools. A
forthcoming network architecture plan will more specifically identify network security protocols
and maintenance procedures.
Current Status
Implementation is currently in progress.
ENHANCING PASSWORD CONTROLS
Passwords serve as the basis for providing controlled access to the City's information system
resources. Adequate password controls should be in place to ensure access is properly restricted.
The City has reasonable password parameters, however, modifying the current settings to those
suggested by leasing practice guidelines can enhance system security.
As suggested by leading practices, we recommend that the City set system parameters to:
• expire assigned passwords on initial log-on
• require that minimum passwords across all platforms and applications be at least six
characters
• force password changes every 45-90 days
• maintain at least five generations of password histories
• lock accounts after three bad-login attempu, and require that access be reestablished
through the help desk or system administrator
• timeout user accounts after 30 minutes of inactivity
• limit concurrent logins (i.e. one for typical users)
We realize that some of the parameters suggested above are in place on various platforms and
applications, however, we suggest that management review the suggestions and standardize the
security parameters across all platforms and applications. In addition, we recommend that
management develop a formal policy that addresses standard password and security requiremenu.
This document should be distributed and reviewed with all City personnel with access to
information systems.
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ENHANCING PASSWORD CONTROLS - Continued
Management Response
Management concurs with these recommendations. A Governance plan and Network
Architecture plan are scheduled for release within the next twelve months. These documents will
outline standards and procedures for employees to follow, including security and password
requirements. The mixed PC operating system environment is a significant detriment to efficiency
and control since greater documentation and training for the user population is required.
Additionally, migration to a unif orm PC operating platf orm will greatly enhance the efficiencies in
network administration and control systems. The Information Technology department will
prepare a multi-year plan to facilitate the PC hardware and operating system upgrades.
Current Status
See current year comments.
BUSINESS CONTINUITY PLANNING
Many of the City's entities rely on the continuous business processing ability of the City's
Information Technology environment. The City has documented a disaster recovery plan that
provides for recovery of the data center, however, this plan does not address recovery of business
processes. Additionally, this plan has not been updated or tested within the last year. Management
understands the importance of maintaining a living document designed to address all aspects of
business resumption planning. We recommend that the Ciry dedicate the resources necessary to
update its recovery plan as well as to prepare and plan for disasters that may impact Information
Technology and non-Information Technology business processes.
When updating the plan, management should ensure that the plan includes policies and procedures
to be followed for both minor and major disruptions of business processes. We further
recommend that management perform a business impact and risk analysis to determine the
probability of possible natural or man-made disaster scenarios (hurricane, fire, bomb, etc.) and the
impact of disasters or other interruptions limiting access to, damaging or destroying the data
center. This will help to determine a minimum acceptable recovery period given the reliance
management places on information systems and the impact on operation s(e.g., downtime costs,
additional staff required to perform manual processes or process backlogs, redeployment of key
individuals, etc.) needed to perform manual processes and backlogs, etc. Based on these
assessments, evaluate the current plan for adequacy. The Ciry's plan should also include aspects of
business recovery that are not currently addressed by the data center disaster recovery plan (e.g.,
recovery of critical business processes, initial response protocols, transitioning to normal
operations, etc). We further recommend that the City designate a Business Resumption
Coordinator (BRC) o ensure that the disaster recovery plan is updated as new technology is
implemented; this will help to ensure that the plan provides for current recovery requirements.
The BRC would be responsible for directing and coordinating testing efforts and training users to
make certain that plans remain viable and users are prepared for their roles. The BRC should also
be responsible for formulating communications strategies and protocols (e.g., establishing an
incident command system) to be used during a disaster.
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BUSINESS CONTINUITY PLANNING - Continued
Management Response
The City's disaster recovery plan will continue to be upgraded to incorporate as many aspects of
post disaster recovery as possible within the resources allocated. The Ciry requires each
department to develop a disaster recovery plan for business operations within their area of
accountability. The City currently has a designated emergency management coordinator and an
incident command center that manage communications and recovery protocols during and after
disasters.
Current Status
See current year comments.
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