COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FISCAL YEAR ENDING SEPTEMBER 20, 2016•
441 i,1!■L"
,A4 ilp4A
George N. Cretekos
Councilmember
City of Clearwater, Florida
Comprehensive Annual Financial Report
for Fiscal Year Ended September 30, 2010
Frank V. Hibbard
Mayor
John P. Doran Paul F. Gibson Bill Jonson
Councilmember Councilmember Councilmember
William B. Horne II
City Manager
Brian Jay Ravins
Finance Director
Prepared by: City of Clearwater Finance Department
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City of Clearwater, Florida
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2010
TABLE OF CONTENTS
INTRODUCTORY SECTION:
Title Page and List of Elected and Appointed Officials
Letter of Transmittal vii
Certificate of Achievement for Excellence in Financial Reporting xi
Organizational Chart xii
FINANCIAL SECTION:
Independent Auditors' Report 1
Management's Discussion and Analysis 3
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Assets 18
Statement of Activities 19
Fund Financial Statements:
Balance Sheet — Govemmental Funds 20
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets 21
Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 22
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances
of Govemmental Funds to the Statement of Activities 23
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual (Non -GAAP Basis) — General Fund 24
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual (GAAP Basis) — Special Development Fund 25
Statement of Net Assets — Proprietary Funds 26
Statement of Revenues, Expenses, and Changes in Fund Net Assets — Proprietary Funds 30
Statement of Cash Flows — Proprietary Funds 34
Statement of Fiduciary Net Assets — Fiduciary Funds 38
Statement of Changes in Fiduciary Net Assets - Fiduciary Funds 39
Notes to the Basic Financial Statements 40
Required Supplementary Information - Pension Trust Funds:
Schedules of Funding Progress 80
Schedules of Employer Contributions 81
Notes to Schedules of Required Pension Supplementary Information 82
Required Supplementary Information — Other Post - Employment Benefits:
Schedule of Funding Progress 83
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet — Nonmajor Governmental Funds 88
Combining Statement of Revenues, Expenditures and Changes in Fund Balances —
Nonmajor Governmental Funds 90
Schedule of Revenues, Expenditures, and Changes in Fund Balance —
Budget and Actual (GAAP Basis) — Community Redevelopment Agency Special Revenue Fund 93
Combining Statement of Net Assets — Nonmajor Enterprise Funds 96
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets -
Nonmajor Enterprise Funds 98
Combining Statement of Cash Flows - Nonmajor Enterprise Funds 100
Combining Statement of Net Assets — Internal Service Funds 106
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets -
Internal Service Funds 107
Combining Statement of Cash Flows — Internal Service Funds 108
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City of Clearwater, Florida
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2010
TABLE OF CONTENTS (Continued)
Combining Statement of Fiduciary Net Assets — Fiduciary Funds 112
Combining Statement of Changes in Fiduciary Net Assets — Fiduciary Funds 113
Statement of Changes in Assets and Liabilities — Treasurer's Escrow Agency Fund 114
Supplementary Information:
Continuing Disclosure — Gas System Revenue Bonds, Series 2004, 2005, and 2007 116
Continuing Disclosure — Water & Sewer Revenue Bonds, Series 2002, 2003, 2006, 2009A and 2009B 121
Continuing Disclosure — Stormwater System Revenue Bonds, Series 2002, 2004, and 2005 124
Continuing Disclosure — Improvement Revenue Bonds, Series 2001 125
Fire Services Program 126
STATISTICAL SECTION:
Introduction 127
Schedule 1 Net Assets by Component 129
Schedule 2 Changes in Net Assets 130
Schedule 2a Program Revenues by Function /Program 133
Schedule 3 Fund Balances of Govemmental Funds 134
Schedule 4 Changes in Fund Balances of Governmental Funds 135
Schedule 5 Assessed Value and Estimated Actual Value of Taxable Property 136
Schedule 6 Direct and Overlapping Property Tax Rates 137
Schedule 7 Property Tax Levies and Collections 138
Schedule 8a Principal Real Property Taxpayers 139
Schedule 8b Principal Personal Property Taxpayers 140
Schedule 9 Ratios of Outstanding Debt by Type 141
Schedule 10 Ratios of General Bonded Debt Outstanding 142
Schedule 11 Direct and Overlapping Govemmental Activities Debt 143
Schedule 12 Legal Debt Margin Information 144
Schedule 13 Pledged- Revenue Coverage 145
Schedule 14 Demographic and Economic Statistics 147
Schedule 15 Principal Employers 148
Schedule 16 Full -time Equivalent City Govemment Employees by Function /Program 149
Schedule 17 Operating Indicators by Function /Program 150
Schedule 18 Capital Asset Statistics by Function /Program 151
SINGLE AUDIT / GRANTS COMPLIANCE SECTION:
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed in Accordance with Government
Auditing Standards 155
Report on Compliance With Requirements Applicable to Each Major Federal Awards Program
and State Financial Assistance Project and on Internal Control Over Compliance in Accordance
With OMB Circular A -133 and Chapter 10.550, Rules of the Auditor General. 157
Schedule of Expenditures of Federal Awards and State Financial Assistance Projects 159
Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Projects 162
Schedule of Findings and Questioned Costs 163
Management Letter 165
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CITY MANAGER
March 30, 2011
CITY OF CLEARWATER
The Honorable Mayor, Councilmembers,
and Citizens of the City of Clearwater:
POST OFFICE Box 4748, CLEARWATER, FLORIDA 33758 -4748
CITY HALL, 112 SOUTH OSCEOLA AVENUE, CLEARWATER, FLORIDA 33756
TELEPHONE (727) 562 -4040 FAX (727) 562 -4052
The City of Clearwater Charter (Section 2.01(c)3), Florida Statutes, and various covenants relating to
debt and pension obligations of the City require an annual audit of the City's financial statements of all
funds of the City by a firm of licensed certified public accountants. These statements must be
presented in conformity with generally accepted accounting principles (GAAP) and audited in
accordance with generally accepted auditing standards. Pursuant to these requirements we hereby
issue the comprehensive annual financial report of the City of Clearwater for the fiscal year ended
September 30, 2010.
This report consists of management's representations concerning the finances of the City.
Consequently, management assumes full responsibility for the completeness and reliability of all of the
information presented in this report. To provide a reasonable basis for making these representations,
management of the City has established a comprehensive internal control framework that is designed
both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable
information for the preparation of the City's financial statements in conformity with GAAP. Because the
cost of internal controls should not outweigh their benefits, the City's comprehensive framework of
internal controls has been designed to provide reasonable rather than absolute assurance that the
financial statements will be free from material misstatement. As management, we assert that, to the
best of our knowledge and belief, this financial report is complete and reliable in all material respects.
Mayer Hoffman McCann P.C., a firm of licensed certified public accountants, has audited the City's
financial statements. The goal of the independent audit was to provide reasonable assurance that the
financial statements of the City for the fiscal year ended September 30, 2010, are free of material
misstatement. The independent audit involved examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements; assessing the accounting principles used and
significant estimates made by management; and evaluating the overall financial statement
presentation. The independent auditor concluded that there was a reasonable basis for rendering an
unqualified opinion that the City's financial statements for the fiscal year ended September 30, 2010,
are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first
component of the financial section of the report.
The independent audit of the financial statements of the City was part of a broader, federally mandated
"Single Audit" designed to meet the special needs of federal and state grantor agencies. The standards
governing Single Audit engagements require the independent auditor to report not only on the fair
presentation of the financial statements, but also on the audited government's internal controls and
compliance with legal requirements, with special emphasis on internal controls and legal requirements
involving the administration of federal and state awards. These reports are in the Single Audit section
of this report.
"EQUAL EMPLOYMENT AND AFFIRMATIVE ACTION EMPLOYER"
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of the Management's Discussion and Analysis
report (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in
conjunction with it. The City's MD &A can be found immediately following the report of the independent
auditors.
Profile of the City of Clearwater, Florida
Clearwater is located on the Pinellas Peninsula on Florida's west coast. It is directly located on the Gulf
of Mexico, 20 miles west of Tampa and 20 miles north of St. Petersburg. Clearwater is the county seat
of Pinellas County and one of the largest cities in the Tampa Bay area. The Clearwater area offers a
semitropical climate and 28 miles of beautiful beaches. Consequently, tourism is an important
component of the economy. In addition to tourism, Clearwater enjoys a diversity of manufacturing
businesses, service industries, high -tech companies, and a large retirement population.
The City operates under the council /manager form of government. Policymaking and legislative
authority are vested in the City Council, which consists of a mayor and four members elected at large
on a non - partisan basis. The City Council is responsible for adopting ordinances, adopting the budget,
and hiring the City Manager and City Attorney. The City Manager is responsible for carrying out the
policies and ordinances of the City Council, for overseeing the day -to -day operations of the City, and
for appointing the heads of the City's departments.
The City provides police and fire protection; construction and maintenance of streets, bridges,
sidewalks, storm drainage, public parks, and recreation facilities; planning, zoning, subdivision, and
building code regulation and enforcement; redevelopment of commercial and residential
neighborhoods; supervised recreation programs; public libraries; water supply and distribution; waste
water collection, treatment, and disposal; natural gas distribution; solid waste collection and recycling;
stormwater management; marina, airpark, convention center, downtown boat slips, public fishing pier
operations; and operation of the city -wide parking system.
The annual budget serves as the foundation for the City's financial planning and control. Per the City
Code of Ordinances, the City Manager is required to provide to the City Council an operating budget
for the ensuing fiscal year, a capital improvement budget, and a five -year capital improvement
program, along with an accompanying budget message no later than 60 days prior to the end of the
fiscal year. The Council is required to hold public hearings on the budget and to adopt a final operating
budget and capital improvement budget no later than September 30, the last day of the City's fiscal
year. The appropriated budget is prepared by fund and by department within fund.
Local Economy
The local economy for the Tampa Bay metropolitan area experienced a continued economic downturn
during fiscal 2010, fueled by continued declines in real estate values and area employment. The
Tampa Bay metropolitan area average unemployment rate increased from 11.8 percent for the year
ended September 2009 to 12.4 percent for the year ended September 2010, versus a national rate of
9.2 percent. However the City remains well - poised to take advantage of the economic recovery when it
occurs, with the completion of the Beach Walk, Downtown Streetscapes, and Clearwater Harbor
Marina projects expected to attract future redevelopment activity.
viii
Long -term Financial Planning
The economic downturn has necessitated an emphasis on balancing demands for City services with
significantly reduced General Fund revenues. Identifying operating efficiencies, consolidating City
operations, prioritizing and /or eliminating programs and services, partnering with other governmental
entities, and other cost saving initiatives have been the focal point of all City departments. A down-
sizing of City services, while continuing to meet the basic needs of residents, as well as properly
maintain City assets and infrastructure, is expected to be the trend for at least the next several years in
light of current economic conditions and taxpayer sentiments.
Relevant Financial Policies
It is a policy of the City Council to maintain a General Fund reserve equal to 8 -1/2% of the subsequent
year's budgeted expenditures as a contingency fund to meet unanticipated financial needs. Per Council
policy, funds in excess of these required reserves may be appropriated by the City Council for specific
capital improvement projects or other one -time needs.
It is a policy of the City Council that all enterprise fund operations shall be self- supporting. Council policy
requires a review of rate schedules every five years, at a minimum, to help ensure that enterprise funds
are self - supporting. Additionally, Council policy requires that unrestricted fund balances of the enterprise
funds be maintained at a level equivalent to at least three months of operation and maintenance
expenses.
Major Initiatives
Consistent with the Council policy that enterprise funds shall be self- supporting, the City closed the
Harborview Convention Center during fiscal 2010, thereby eliminating the annual General Fund subsidy to
the Harborview Enterprise Fund for support of convention center operations.
More than $30 million of fiscal 2011 capital project expenses are budgeted to proactively support the
City's five utility operations, which consist of Water and Sewer, Stormwater, Solid Waste, Recycling, and
Gas Utility operations. The projects include reverse osmosis plant expansion, a groundwater
replenishment facility, and an automated meter reading system for potable water and reclaimed water
systems.
Construction of the City's new downtown boat slips at the Clearwater Harbor Marina was completed
during the current fiscal year. The operation of the boat slips will be accounted for in the Clearwater
Harbor Marina enterprise fund.
In December 2009, the City received statewide certification as a Green City from the Florida Green
Building Coalition, recognizing efforts towards improving the City's environmental performance. To
continue in this effort, during the current fiscal year the City entered into a guaranteed energy savings
contract. This contract will achieve long term energy savings over a period of fifteen years via lighting, air
conditioning, and other efficiency upgrades at various City locations. The first year of energy savings
under the contract is estimated at almost $200,000.
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1
Awards and Acknowledgements 1
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the City for its comprehensive annual financial report (CAFR)
for the fiscal year ended September 30, 2009. This was the thirty -first consecutive year that the
City received this prestigious award. In order to be awarded a Certificate of Achievement, the
government published an easily readable and efficiently organized CAFR. This report satisfied
both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period
of one year only. We believe that our current CAFR continues to meet the Certificate of
Achievement Program's requirements and we are submitting it to the GFOA to determine its
eligibility for another certificate.
In addition, the City received the GFOA's Distinguished Budget Presentation Award for the fiscal
year 2010 Budget document, the twenty -fourth consecutive year that this award has been
received. In order to qualify, the City's Budget document was judged to be proficient in several
categories including as a policy document, a financial plan, an operations guide, and a
communications device. j
We wish to thank the many members of the Citywide Annual Financial Reporting (CAFR) Team,
which is composed of individuals in the Finance Department and other financial staff throughout
the City, for their professionalism and dedication in producing this report. Sincere appreciation is
also extended to the City's external auditors, Mayer Hoffman McCann P.C., for their advice and
assistance in the preparation of this report. Finally, we would like to thank the City Council for
their interest, continued support, and leadership in planning and conducting the financial
operations of the City in a progressive and responsible manner.
Sincerely, 1
William B. Horne, II
City Manager
etu"---
Brian Jay Ravins
Finance Director
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Clearwater
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2009
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.
Executive Director
xi
LCity Auditor
Fire Department
Official Records
& Legislative
Services
Police
Department
Public
Communications
City of Clearwater Organizational Chart
City Council
City Manager
City Attorney
Assistant City Manager
Engineering
Assistant City Manager
Financial
Services
Office of
Management &
Budget
Human
Resources
Parks &
Recreation
Information
Technology
Planning &
Development
Library
Public Services
Public Utilities
xii
Solid Waste /
General Support
Services
Customer
Service
Economic
Development &
Housing
Gas System
Marine &
Aviation
Emergency
Management
MHM
Mayer Hoffman McCann P.C.
An Independent CPA Firm
KRMT Tampa Bay Division
13577 Feather Sound Drive, Suite 400
Clearwater, FL 33762
Phone: 727.572.1400 • 813.879.1400
Fax: 727.571.1933
www.mhm- pc.com
Independent Auditors' Report
Honorable Mayor and City Councilmembers
City of Clearwater, Florida:
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, each major fund, and the aggregate remaining fund information of the City of Clearwater,
Florida (the City), as of and for the year ended September 30, 2010, which collectively comprise the
City's basic financial statements as listed in the table of contents. We have also audited the financial
statements of each of the City's non -major governmental, non -major enterprise, internal service and
fiduciary funds presented in the accompanying combining and individual fund statements and schedules
as of and for the year ended September 30, 2010, as listed in the table of contents. These financial
statements are the responsibility of the City's management. Our responsibility is to express opinions on
these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we
express no such opinion. An audit also includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major fund,
and the aggregate remaining fund information of the City, as of September 30, 20] 0, and the respective
changes in financial position and, where applicable, cash flows thereof and the respective budgetary
comparisons for the general fund and the special development fund, for the year then ended, in
conformity with accounting principles generally accepted in the United States of America. In addition, in
our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of each of the non -major governmental, non -major enterprise, internal
service and fiduciary funds of the City as of September 30, 2010, and the respective changes in financial
position and cash flows, where applicable, thereof for the year then ended, in conformity with accounting
principles generally accepted in the United Sates of America.
Adenzbei c1t ■reSto' intr r
- a global network of independent accounting (ions
1
In accordance with Government Auditing Standards, we have also issued our report dated March 30, 2011
on our consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the internal
control over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be considered in assessing the results of our
audit.
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis on pages 3 through 15 and the pension and post - employment benefit disclosures
on pages 80 through 83 be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board, who considers it to be an essential part of financial reporting for placing the basic
financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's financial statements as a whole and on each of the City's non -major governmental,
non -major enterprise, internal service and fiduciary funds. The introductory section, supplementary
information and statistical section are presented for purposes of additional analysis and are not a required
part of the financial statements. In addition, the accompanying schedule of expenditures of federal
awards and state financial assistance projects is presented for purposes of additional analysis as required
by the U.S. Office of Management and Budget Circular A -133, Audits of State and Local Governments,
and Non - Profit Organizations, and Chapter 10.550, Rules of the Auditor General, and is also not a
required part of the basic financial statements. The schedule of expenditures of federal awards and state
financial assistance projects, has been subjected to auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the financial
statements or to the financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America and, in our opinion, is fairly
presented in all material respects in relation to the basic financial statements taken as a whole. The
introductory and statistical sections and the supplementary information have not been subjected to the
auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not
express an opinion or provide any assurance on them.
-11(1 /41-fFm&4- &A'4_
March 30 2011 7
Clearwater, Florida
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Management's Discussion and Analysis
This Management's Discussion and Analysis report provides the reader with a narrative overview and analysis of the
financial activities of the City for the fiscal year ended September 30, 2010. Management's Discussion and Analysis
(MD & A) should be read in conjunction with the City's Transmittal Letter, which begins on page vii of this report.
Financial Highlights
The City's assets exceeded its liabilities at the close of fiscal year 2010 by $728.2 million (net assets). Of this amount,
$235.5 million (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and
creditors.
The City's total net assets increased by $21.5 million, or 3.0 %, during fiscal 2010. Net assets for governmental activities
increased by $5.2 million, or 1.3 %, while the business -type net assets increased by $16.3 million, or 5.1%.
Significant factors contributing to the $5.2 million increase in governmental net assets included operating and capital
grants and contributions totaling $8.9 million, offset by a $3.6 million, or 42 %, decrease in investment earnings versus
the prior year due to less favorable investment market conditions.
The $16.3 million increase in business -type net assets is primarily the result of operating revenues in excess of
operating expenses for Water & Sewer Utility, Gas Utility, Solid Waste Utility, and Stormwater Utility operations. Also
contributing to the increase was the receipt by the Water and Sewer Utility of $7.1 million in capital grants for reclaimed
water projects, and $2.3 million in capital grants received for the Downtown Boat Slips construction project, offset by a
$1.6 million, or 23 %, decrease in investment earnings versus the prior year due to less favorable investment market
conditions..
At September 30, 2010, the City's governmental funds reported combined ending fund balances of $111.9 million, a
decrease of $1.4 million, or 1.3 %, in comparison with the prior year. Of this amount, $84.1 million (or 75.2 %) is available
for spending at the government's discretion (unreserved fund balance). The decrease of $1.4 million in governmental
fund balances is primarily the result of: a $5.6 million current year decrease in the Infrastructure Sales Tax Revenue
Bonds Debt Service Fund due to a scheduled final principal payment on the related bonds and a $2.1 million decrease
in fund balance for the Capital Improvement Fund due to current year project expenditures in excess of current year
project funding; offset by $3.0 million contributed by the Central Insurance Fund towards the planned February 2011
redemption of the Improvement Revenue Refunding Bonds, Series 2001; a $1.7 million increase in fund balance for the
General Fund primarily due to expenditure "savings" (versus budget) across all departments per an emphasis on cost
reductions; and $1.7 million contributed by the Central Insurance Fund to the Special Programs Fund in the current year
for the new employee health clinic, offset by $0.4 million in current year expenditures for the clinic.
At September 30, 2010, unreserved fund balance for the General Fund was $22.9 million, or 21.1% of total current year
general fund expenditures.
Total actual revenues for the General Fund for fiscal 2010 were $1.3 million, or 1.1 %, greater than final budgeted
revenues primarily due to utility taxes, franchise fees, and charges for services that exceeded budget, as discussed in
the detailed General Fund discussion included in the governmental funds financial analysis that follows. Total fiscal
2010 actual expenditures for the General Fund were less than final budgeted expenditures by $3.8 million, or 3.4 %. This
was due to budget savings across all City departments for fiscal 2010, including $1.2 million, or 3.1 %, for Police, $0.5
million, or 3.0 %, for Parks and Recreation, and $0.5 million, or 2.3 %, for Fire.
Finally, actual General Fund interfund transfers in were $184,000, or 1.0 %, less than final budgeted interfund transfers
in, while actual General Fund interfund transfers out were $255,000, or 1.3 %, less than final budgeted interfund
transfers out. The combined General Fund fiscal 2010 budgetary savings per above totaled $5.1 million.
3
Overview of the Financial Statements
This discussion and analysis (MD &A) is intended to serve as an introduction to the City of Clearwater's basic financial
statements. The City's basic financial statements are comprised of three components: 1) government -wide financial
statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other
supplementary information in addition to the basic financial statements themselves.
Government -Wide Financial Statements
The government -wide financial statements are the statement of net assets and the statement of activities. These
statements report information about the City as a whole using accounting methods similar to those used by private -
sector businesses. Emphasis is placed on the net assets of governmental activities and business -type activities, and the
change in net assets. Governmental activities are principally supported by taxes and intergovernmental revenues.
Governmental activities include most of the City's basic services, including police, fire, public works, parks and
recreation, and general administration. Business -type activities are intended to recover all or a significant portion of their
costs through user fees and charges. The City's water and sewer system, stormwater system, gas system, solid waste,
recycling, marine, aviation, convention center, Clearwater Harbor Marina, and parking system operations are reported
as business -type activities.
• The statement of net assets presents information on all of the City's assets and liabilities, with the difference
between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful
indicator as to whether the financial position of the City is improving or deteriorating. Net assets are reported in
three major categories: 1) invested in capital assets, net of related debt; 2) restricted; and 3) unrestricted.
• The statement of activities presents information showing how the City's net assets changed as a result of the
year's activities. All changes in net assets are recorded in the period in which the underlying event takes place,
which may differ from the period in which cash is received or disbursed. The Statement of Activities displays the
expense of the City's various programs net of related revenues, as well as a separate presentation of revenues
available for general purposes.
The government -wide financial statements include not only the City of Clearwater itself but also the Clearwater
Redevelopment Agency (CRA). The CRA, though legally separate, is reported as part of the primary government as a
blended component unit due to the City Council serving as the CRA's governing board.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for
specific activities or objectives. The fund financial statements provide detailed information about the City's major funds —
not the City as a whole. Fund accounting helps to ensure and demonstrate compliance with finance- related legal
requirements. Based on restrictions on the use of monies, the City has established many funds that account for the
multitude of services provided to residents. These fund financial statements focus on the City's most significant funds:
governmental, proprietary, and fiduciary.
Governmental funds
Governmental funds are used to report most of the City's basic services. These funds are used to account for
essentially the same functions reported as governmental activities in the government -wide financial statements. The
funds focus on the inflows and outflows of current resources and the balances of spendable resources available at the
end of the fiscal year. Such information may be useful in evaluating a government's near -term financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful
to compare the information presented for governmental funds with similar information presented for governmental
activities in the government -wide financial statements. By doing so, readers may better understand the long -term impact
of the government's near -term financing decisions. Both the governmental fund balance sheet and the governmental
fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
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The City maintains thirteen individual governmental funds. Information is presented separately in the governmental
funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances
for the General, Special Development, and Capital Improvement funds, which are considered to be major funds. Data
from the other ten governmental funds are combined into a single aggregated columnar presentation. Individual fund
data for each of these nonmajor governmental funds is provided in the form of combining statements in the
supplementary information section of this report.
Annual appropriated budgets are adopted for the General Fund, the Special Development Special Revenue Fund, and
the Community Redevelopment Agency Special Revenue Fund. Budgetary comparison statements and /or schedules
have been provided for these funds to demonstrate budgetary compliance.
Proprietary funds
The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions
presented as business -type activities in the government -wide financial statements. The City uses enterprise funds to
account for the fiscal activities related to water and sewer, gas, solid waste and stormwater utilities, along with recycling,
marine, aviation, parking system, Harborview Convention Center, and Clearwater Harbor Marina boat slip operations.
Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's
various functions. The City uses internal service funds to account for the City's building maintenance, custodial services,
self- insurance program, risk management program, employee group insurance, vehicle acquisition and maintenance,
and various support activities including data processing, legal, telecommunications, postal, and printing services. All of
the City's internal service funds predominantly benefit governmental activities and consequently have been aggregated
and included within governmental activities in the government -wide financial statements.
Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail.
The proprietary fund financial statements provide separate information for the Water and Sewer Utility, Gas Utility, Solid
Waste Utility, and Stormwater Utility enterprise funds, which are considered to be major funds of the City. The remaining
six non -major enterprise funds are combined into a single aggregated presentation in the proprietary fund financial
statements. Similarly, governmental activity internal service funds are aggregated into a single presentation. Individual
fund data for the non -major enterprise funds and the internal service funds is provided in the form of combining
statements in the supplementary information section of this report.
Fiduciary funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds
are not reflected in the government -wide financial statements because the resources of the fiduciary funds are not
available to support the City's own programs. The accounting used for fiduciary funds is similar to proprietary funds.
Notes to the Financial Statements
The notes to the financial statements provide additional information that is essential for a full understanding of the
information provided in the government -wide and fund financial statements, including the City's progress in funding its
obligations to provide pension benefits and other post - employment benefits to its employees.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information concerning the City's progress in funding its obligations to provide pension benefits and
other post - employment benefits to its employees.
The combining statements referred to earlier in connection with non -major governmental funds, non -major enterprise
funds, and internal service funds, are presented immediately following the required supplementary information.
5
Government -Wide Financial Analysis
The overall financial position of the City improved in both the fiscal 2010 and fiscal 2009 years. As noted earlier, net
assets may serve over time as a useful indicator of a government's financial position. In the case of the City, assets
exceeded liabilities by $728.2 million at the close of the fiscal year ended September 30, 2010. This represents an
increase of $21.5 million from the September 30, 2009 total net assets of $706.7 million. Net assets of both the
governmental and the business -type activities increased primarily due to operating and capital grants and contributions
of $20.1 million, along with favorable operating results for business -type activities, partially offset by a $5.2 million, or
34 %, decrease in investment earnings versus the prior year due to less favorable investment market conditions. The
City reports positive balances in all three categories of net assets, both for the government as a whole as well as for its
separate governmental and business -type activities, for both the current year and the prior year, as indicated in the
following table:
Assets
Current and other assets
Capital assets
Total assets
Liabilities
Current and other liabilities
Long -term debt outstanding:
Due within one year
Due in more than one year
Total liabilities
Net assets
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total net assets
Governmental Activities
2010 2009
$ 169,840,956
277,095,034
446,935,990
Business -type Activities Total
2010 2009
2010 2009
$ 171,382,786 $ 222,289,854 $ 235,779,420 $ 392,130,810 $ 407,162,206
280,712,145 376,289,621 361,528,638 653,384,655 642,240,783
452,094,931 598,579,475 597,308,058 1,045,515,465 1,049,402,989
7,560,939 6,754,742 18,895,434 18,890,369 26,456,373 25,645,111
10,925,242 17,697,486 8,248,498 7,953,042 19,173,740 25,650,528
36,441,414 40,855,580 235,195,283 250,541,848 271,636,697 291,397,428
54,927,595 65,307,808 262,339,215 277,385,259 317,266,810 342,693,067
249,042,568
33,684,957
109,280,870
$ 392,008,395
240,549, 768 165, 704, 305
42,681,351 44,332,065
103,556,004 126,203,790
$ 386,787,123 $ 336,240,160
158,128,827
41,332,593
120,461,379
$ 319,922,799
414,746,873 398,678,595
78,017,022 84,013,944
235,484,660 224,017,383
$ 728,248,555 $ 706,709,922
A large portion of the City's net assets (57.0 %) represent its investment in capital assets (e.g., land, infrastructure, land
improvements, buildings, and equipment), less any related outstanding debt used to acquire those assets. The City
uses these capital assets to provide services to citizens, and consequently these assets are not available for future
spending. Although the City's investment in capital assets is reported net of related debt, it should be noted that the
resources needed to repay this debt must be provided from other resources, since the capital assets themselves will not
be used to liquidate these liabilities.
An additional portion of the City's net assets (10.7 %) represents resources that are subject to external restrictions on
how they may be used. The remaining balance of unrestricted net assets ($235.5 million or 32.3 %) may be used to
meet the government's ongoing obligations to citizens and creditors.
There was an $8.5 million, or 3.5 %, increase in invested in capital assets, net of related debt for governmental activities
versus the previous year. The increase was due to a decrease in related revenue bonds debt due to $7.5 million in
scheduled bond principal payments and the early redemption of the 2008 Improvement Revenue bonds in the amount
of $3.7 million. This $11.2 million reduction in capital - related revenue bonds, plus a current year $0.9 million decrease in
capital lease purchase contracts, was offset by a decrease of $3.6 million in governmental capital assets for the current
fiscal year. The decrease in governmental capital assets resulted from capital asset additions of $13.4 million that were
more than offset by depreciation expense of $15.4 million and net capital asset retirements totaling approximately $646
6
thousand. See the following discussions of capital assets and long term debt for more information on current year
activity.
Invested in capital assets, net of related debt for business -type activities increased by $7.6 million, or 4.8 %, due to
$31.3 million of capital asset additions, offset by $17.4 million in current year depreciation expense, $166 thousand in
capital asset disposals, and a $7 million increase in related bond debt, net of unspent bond proceeds. The $7 million
increase in related bond debt, net of unspent bond proceeds was the result of a current year $15.1 million spend -down
of bond proceeds offset by scheduled principal payments.
Changes in Net Assets
The following table reflects the changes in net assets for the years ended September 30, 2010, and September 30,
2009:
Revenues
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues:
Property taxes
Sales taxes
Utility taxes
Other taxes
Other
Total revenues
Expenses
General Government
Public Safety
Physical Environment
Transportation
Economic Environment
Human Services
Culture and Recreation
Interest on Long -term Debt
Water and Sewer Utility
Gas Utility
Solid Waste Utility
Stormwater Utility
Other
Total expenses
Increase in net assets before
transfers
Transfers
Increase in net assets
Net assets - beginning
Net assets - ending
City of Clearwater, Florida - Changes In Net Assets
Primary Government
Business -type Activities
2010 2009
Govemmental Activities
2010 2009
Totals
2010 2009
$ 36,935,873 $ 38,161,263 $ 137,495,683 $ 137,555,458 $ 174,431,556 $ 175,716,721
7,560,887 8,542,267 186,649 83,139 7,747,536 8,625,406
1,315,379 3,168,601 11,060,483 2,609,441 12,375,862 5,778,042
44,040,222 46,893,141 - 44,040,222 46,893,141
13,253,393 13,849,909 13,253,393 13,849,909
13,573,548 12,020,599 - 13,573,548 12,020,599
13,879,951 13,978,792 - 13,879,951 13,978,792
5,143,004 8,747,924 5,284,122 6,904,419 10,427,126 15,652,343
135,702,257 145,362,496 154,026,937 147,152,457 289,729,194 292,514,953
15,965,621 13,515,387 15,965,621 13,515,387
69,456,573 64,977,624 69,456,573 64,977,624
4,940,808 4,265,721 4,940,808 4,265,721
13,760,461 9,594,793 13,760,461 9,594,793
4,155,478 3,923,820 4,155,478 3,923,820
97,549 401,615 97,549 401,615
30,609,832 28,740,133 30,609,832 28,740,133
1,446, 021 1,849,634 1,446,021 1,849,634
57,228,965 54,520,158 57,228,965 54,520,158
31,199,734 29,285,270 31,199,734 29,285,270
15,617,918 14,801,035 15,617,918 14,801,035
10,936,788 11,775,346 10,936,788 11,775,346
12, 774,813 13,856,476 12,774,813 13,856,476
140,432,343 127,268,727 127,758,218 124,238,285 268,190,561 251,507,012
(4,730,086) 18,093,769 26,268,719 22,914,172 21,538,633 41,007,941
9,951,358 (2,958,002) (9,951,358) 2,958,002
15,135, 767 16, 317, 361 25, 872,174 21, 538, 633 41, 007,941
371,651,356 319,922,799 294,050,625 706,709,922 665,701,981
$ 392,008,395 $ 386,787,123 $ 336,240,160 $ 319,922,799 $ 728,248,555 $ 706,709,922
5,221,272
386,787,123
7
Governmental Activities
Governmental activities net assets increased by $5.2 million from $386.8 million as of September 30, 2009, to $392.0
million as of September 30, 2010. This increase due to governmental activities accounted for 24% of the total increase
in net assets for the City, and represented a 1.3% increase in net assets for governmental activities. Key elements of
the increase were operating and capital grants and contributions totaling $8.9 million.
Total expenses for governmental activities increased by $13.2 million, or 10.3 %, versus the prior year. This was
primarily due to a $9.5 million, or 138 %, increase in governmental activities pension expense due to a significant
investment market downturn during calendar 2008 and the resulting impact on the City's actuarially required contribution
to the Employees' Pension Plan for fiscal 2010.
Total program revenues for governmental activities decreased by $4.1 million, or 8.1%, versus the prior year. This
decrease was primarily due to a $0.5 million decrease in charges for services reflecting decreased County
reimbursements for emergency medical services per a new reimbursement formula; a $0.5 million decrease in charges
for services for County fire protection reimbursements due to a fire engine purchase in the prior year; a $1.3 million
decrease in operating grants and contributions due to decreased state and county operating grants for local housing
assistance grants, due to the economic downturn and resulting impact on program funding; and a $1.9 million decrease
in capital grants and contributions due to a decrease in related capital project activity for the current fiscal year.
Total general revenues for governmental activities decreased by $2.0 million, or 2.3 %, primarily due to a $2.8 million, or
6.1%, decrease in property taxes due to decreased property values resulting from the continued economic downturn.
Additionally, investment earnings for governmental activities decreased by $3.6 million, or 42 %, due to less favorable
market conditions. Finally, transfers for governmental activities changed from a net transfer out to business -type
activities of $3.0 million in fiscal 2009 to a net transfer in from business -type activities of $10.0 million in the current
year. This net change of $13 million was primarily due to a fiscal 2009 transfer out from the Central Insurance Fund to
the Clearwater Harbor Marina Fund of $9.8 million for boat slip financing, and the fiscal 2010 return of $4.6 million from
the Clearwater Harbor Marina Fund to the Central Insurance Fund due to current year receipt of infrastructure sales tax
monies.
The cost of all governmental activities this year was $140.4 million. This reflects a $13.2 million, or 10.3 %, increase from
the fiscal 2009 total of $127.2 million. However, as shown on the Statement of Activities, the amount that the City's
taxpayers ultimately financed for these activities totaled $94.6 million, because some of the cost was paid for by those
who directly benefited from the programs ($36.9 million) or by other governments and organizations that subsidized
certain programs with grants and contributions ($8.9 million). This total of $94.6 million is $17.2 million more than the
fiscal 2009 amount financed from general revenues.
Millions
$70
$60
$50
$40
$30
$20
$10
$0
Expenses and Program Revenues - Governmental Activities
For the Year Ended September 30, 2010
■Expenses •Revenues
Culture and
Recreation
conomic
Environment
Public
Safety
8
Transportation
Human
Services
Interest on
Long -term Debt
Revenues by Sources - Governmental Activities
For the Year Ended September 30, 2010
Property taxes
32%
Capital grants and
contributions
1%
Operating grants and
contributions
6%
Sales taxes
10%
Charges for services
27%
Utility taxes
10%
Communications services
taxes
4%
Other taxes
6%
Other revenues
4%
Business -type Activities
Net assets for business -type activities increased from $319.9 million for the prior year to $336.2 million. This increase
totaled $16.3 million, reflecting a 5.1% increase in business -type activities net assets and 76% of the total increase in
net assets for the City. Net revenue from business -type activities, before investment earnings and transfers, increased
from $16.0 million for the prior year to $21.0 million for fiscal 2010. This $5.0 million, or 31 %, increase was the result of
operating revenues in excess of operating expenses, along with $11.1 million in current year capital grants and
contributions, offset by $11.5 million in interest expense on long term debt.
Total revenues for business -type activities increased by $6.8 million, or 4.6 %, to $153.9 million versus the prior year
total of $147.1 million, primarily due to: the receipt of $7.1 million in capital grants received by the Water and Sewer
Utility for reclaimed water projects; an increase of $2.3 million in capital grants received by the Clearwater Harbor
Marina business -type activity; an increase of $1.8 million in Water and Sewer Utility operating revenues due to a 7%
rate increase; an increase of $1.8 million in operating revenues for the Gas Utility primarily the result of rate increases
due to increased fuel costs; an increase of $0.8 million in Stormwater Utility operating revenues due to a 6% rate
increase; offset by a $4.2 million decrease in Gas Utility non - operating revenues due to a $4.1 million forward pricing
agreement termination settlement received in fiscal 2009; and offset by $1.2 million decrease in Harborview Convention
Center operating revenues due to the ceasing of operations in January 2010. Finally, the above increases in revenues
were also offset by a $1.7 million decrease in investment earnings due to market conditions. Please refer to the
discussion of proprietary funds operating results that follows for additional discussion of these revenues.
Total expenses for business -type activities increased by $3.5 million, or 2.8 %, from $124.2 million in fiscal 2009 to
$127.7 million for fiscal 2010. A significant portion of the $3.5 million increase in expenses was attributable to increased
pension costs due to calendar year 2008 pension plan investment losses and the resulting impact on required employer
pension contributions. Please refer to the discussion of proprietary funds operating results that follows for additional
discussion of a number of offsetting decreases and increases in specific expense categories that account for the $3.5
million current year increase.
Finally, transfers for business -type activities changed from a net transfer in from governmental activities of $3.0 million
in fiscal 2009 to a net transfer out to governmental activities of $10.0 million in the current year. This net change of $13
million was primarily due to a fiscal 2009 transfer in from the Central Insurance Fund to the Clearwater Harbor Marina
Fund of $9.8 million for boat slip financing, and the fiscal 2010 return of $4.6 million to the Central Insurance Fund from
the Clearwater Harbor Marina Fund due to receipt of infrastructure sales tax funding in the current year.
9
$70,000,000
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$0
Expenses and Program Revenue - Business -type Activities
For the Year Ended September 30, 2010
Water and Sewer Gas Utility Solid Waste Utility Stormwater Utility Other
Utility
Revenues by Source - Business -type Activities
For the Year Ended September 30, 2010
Charges for services
89.3%
Other
0.1%
10
Investment earnings
3.4%
❑ Expenses
❑ Revenues
Capital grants and
contributions
7.2%
Financial Analysis of the City's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance - related legal
requirements.
Governmental Funds
The focus of the City's governmental funds is to provide information on near -term inflows, outflows, and balances of
spendable resources. Such information is useful in assessing the City's financing requirements. In particular,
unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the
end of the fiscal year. The City reports the General Fund, Special Development Fund, and Capital Improvement Fund
as major governmental funds.
The City's governmental funds for the year ended September 30, 2010, reflect a combined fund balance of $111.9
million versus $113.4 million for the prior year, a decrease of $1.5 million. A total of $84.1 million, or 75 %, represents
unreserved fund balance available for spending at the government's discretion. The remainder of the fund balance is
reserved to indicate that it is not available for new spending because it has already been committed: 1) to liquidate
construction contracts and purchase orders of the prior period ($5.7 million); 2) to pay debt service ($1.5 million); 3) for
advances due from other funds ($0.6 million); 4) for land held for resale ($2.0 million); and 5) for specific program
purposes per grant restrictions and related loan agreements ($17.9 million).
The General Fund is the chief operating fund of the City. At September 30, 2010, unreserved fund balance of the
General Fund totaled $22.9 million, with the remainder of the $24.1 million in fund balance "reserved" to indicate it has
already been committed for purchase orders of the prior period ($1.2 million). As a measure of the general fund's
liquidity it is useful to compare unreserved fund balance to total fund expenditures. Unreserved fund balance represents
21.1% of total general fund expenditures (GAAP basis before transfers) for the current fiscal year.
The fund balance of the City's General Fund increased by $1.7 million during the current fiscal year versus a final
budgeted decrease of $3.4 million. This $5.1 million variance from the budgeted decrease was primarily the result of
total expenditures that were less than budgeted expenditures by $3.8 million, along with total revenues that were $1.3
million in excess of budgeted revenues. General Fund expenditure "savings" of $3.8 million, or 3.4 %, was spread across
all departments due to an emphasis on cost reductions City -wide. The General Fund revenues were greater than
budgeted by $1.3 million primarily due to $352,000 surplus of utility taxes due to increased electricity usage resulting
from colder than normal winter weather; a $388,000 surplus of franchise fees, also resulting from the increased
electricity usage; and increased Parks and Recreation department service fees for special events.
The fund balance of the Special Development Fund decreased from $11.0 million to $6.5 million, for a decrease of $4.5
million or 41.2 %, during the current fiscal year versus a decrease of $0.4 million for fiscal 2009. The significant decrease
in fund balance was primarily due to a $4.6 million transfer to the General Fund towards redemption in full of the City's
Improvement Refunding Revenue Bonds, Series 2001.
The fund balance for the Capital Improvement Fund decreased from $36.5 million to $34.4 million during the current
fiscal year. This decrease of $2.1 million is primarily the result of current year capital project expenditures ($13.0 million)
in excess of current year capital project funding received from other funds ($10.2 million), and grant revenues received
from federal, state, and local agencies ($0.8 million). This is typical volatility for the Capital Improvement Fund due to
timing differences between project funding and project spending.
The fund balances for Other (non- major) Governmental Funds increased from $43.5 million to $47.0 million during the
current fiscal year. This increase of $3.5 million was primarily the result of: $1.3 million of current year Special Programs
special revenue fund receipts in excess of current year expenditures for the new employee health clinic; $0.7 million
received by the Special Programs special revenue fund for the HOME Housing Rehabilitation Grant; $1.0 million in
HOME Housing Rehabilitation Grant matching funds received from the SHIP and Pinellas County Local Housing
Assistance Trust Funds, offset by corresponding transfers out of those funds; and a $7.6 million increase in the
Improvement Revenue Refunding Bonds Debt Service Fund due to the current year receipt of funding for the planned
fiscal 2011 redemption of the 2001 Improvement Revenue Refunding Bonds. These increases were offset by a $5.6
million decrease in fund balance for the Infrastructure Sales Tax Revenue Bonds Debt Service Fund due to a scheduled
final principal payment on the related bonds.
11
Proprietary Funds
The City's proprietary funds provide the same type of information found in the government -wide financial statements,
but in more detail. The City reports the Water and Sewer Utility Fund, the Gas Utility Fund, the Solid Waste Utility Fund,
and the Stormwater Utility Fund as major funds.
The Water and Sewer Utility Fund realized a $5.1 million increase in net assets versus a $0.4 million increase for the
prior year. Operating revenues increased by $1.8 million, or 3.3 %, offset by an increase in operating expenses of $1.0
million, or 2.1%. This resulted in a net increase in operating income of $0.8 million, or 12.8 %, from $5.9 million in fiscal
2009 to $6.7 million for 2010. Additionally, capital grants and contributions increased by $6.3 million, or 475 %; offset by
a $1.5 million, or 21.7% increase in interest expense; a $0.6 million, or 19.0% decrease in investment earnings; and a
$0.4 million, or 15.6% increase in transfers out to other funds. The increase in operating revenues was the result of a
7% rate increase effective October 1, 2009, offset by decreased consumption due to the economic downturn. The
increase in operating expenses was primarily an increase in personal services expenditures of $0.9 million due to
increased pension costs. The increase in capital grants and contributions was primarily the result of $7.1 million in
grants received for reclaimed water projects. The decrease in investment earnings was due to market conditions, while
the increase in transfers out to other funds was the result of a $450 thousand transfer to the Special Programs fund for
fiscal 2010 retirement incentives.
The Gas Utility Fund realized a $2.0 million increase in net assets versus an $8.6 million increase for the prior year.
Operating revenues increased by $1.8 million, or 5.2 %, from the prior year, primarily due to increased fuel costs, offset
by a $1.8 million, or 6.4 %, increase in operating expenses. The increase in operating expenses was due to a $0.6
million, or 333% increase in professional services due to a City -wide energy savings project and various other projects;
a $0.5 million accrual for pollution remediation; and a $0.3 million, or 6.1% increase in personal services due to
increased pension costs. This resulted in virtually no change in operating income from the prior year, which remained at
$5.9 million. Additionally, other non - operating revenues decreased by $4.2 million, or 92.7% from the prior year, while
transfers out to other funds increased by $2.3 million, or 111.7 %. The decrease in non - operating revenues was due to a
prior year $4.1 million gain from the buyout of the City's rights under a gas pre - purchase agreement. The fiscal 2010
increase in transfers out to other funds was also related to the buyout of the gas pre - purchase agreement, as the Gas
system paid a dividend to the General Fund on this fiscal 2009 gain during fiscal 2010
The Solid Waste Utility Fund realized a $2.3 million increase in net assets versus a $2.6 million increase for the prior
year. Operating revenues increased by $558,000, or 3.2 %, offset by an increase in operating expenses of $595,000, or
4.0 %, resulting in a minimal $37,000 decrease in operating income from $2,567,000 in fiscal 2009 to $2,530,000 in
fiscal 2010. The 3.2% increase in operating revenues was due to a 5% rate increase, offset by decreased commercial
consumption due to the economic downturn. The $595,000 increase in operating expenses was primarily due to a
similar increase in personal services expenses due to increased pension costs. The $2.5 million of operating income
was partially offset by an $80 thousand transfer to the Special Programs Fund for the retirement incentives program.
The Stormwater Utility Fund realized an increase in net assets of $4.6 million versus a prior year increase of $2.6
million. Operating revenues increased by $0.8 million, or 6.0 %, due to scheduled rate increases. Additionally fiscal 2010
realized a $0.7 million, or 7.5% decrease in operating expenses, primarily attributable to a $0.9 million, or 136 %,
decrease in professional services resulting from the decreased project activity. Also contributing to the increase in net
assets was a $0.4 million increase in non - operating revenues due to a legal settlement.
Unrestricted net assets and changes in net assets of the proprietary funds for fiscal years 2010 and 2009:
Fund
Water and Sewer Utility
Gas Utility
Solid Waste Utility
Stormwater Utility
Other funds
Totals
Unrestricted Net Assets
2009
$ 35,382,376
21,937,251
16,981,480
17,464,603
23,853,324
$ 115,619,034
2010
$ 37,371,341
22,709,440
19,269,262
20,377,571
21,304,268
$ 121,031,882
12
Change in Net Assets
2010
$ 5,128,829
2,028,168
2,329,338
4,589,938
1,911,525
$ 15,987,798
2009
$ 387,545
8,639,131
2,588,805
2,616,680
10,417,988
$ 24,650,149
General Fund Budgetary Highlights
The final amended budget for General Fund expenditures reflected an increase of $2.3 million, or 2.1 %, from the
original budget. Key elements of this increase were as follows:
• $0.9 million increase in Police and $1.3 million increase in Fire budgeted expenditures due to the accounting for
State tax contributions to Police and Fire Supplemental Pension Plans, which are recorded as General Fund
revenues and employer contribution expenditures as recommended by the Governmental Finance Officers
Association. These budgeted expenditure increases were offset by an equal increase in budgeted revenues
below.
Final budgeted revenues reflect a $2.3 million, or 2.1 %, increase from the original budget primarily due to the following:
• $2.2 million, or 25 %, increase in budgeted intergovernmental revenues from state sources to reflect state
insurance tax monies received on behalf of the City's police and fire supplemental pension plans.
Final budgeted "transfers in" from other funds reflect a $10.3 million, or 127 %, increase from the original budget
primarily due to:
• A $7.6 million increase in budgeted transfers in to reflect $4.6 million from the Special Development Fund and
$3.0 million from the Central Insurance Fund towards the planned February 2011 redemption of the outstanding
City of Clearwater Improvement Revenue Refunding Bonds, Series 2001.
• $2.3 million increase in the current year budgeted annual gas system dividend payment to the General Fund
due to prior year non - operating revenue for settlement of a forward gas purchase agreement.
Final budgeted "transfers out" reflect a $13.9 million, or 258 %, increase from the original budget primarily due to the
following transfers: $7.6 million transferred to the Improvement Revenue Refunding Bonds Debt Service Fund for the
February 2011 redemption of the City of Clearwater Improvement Revenue Refunding Bonds, Series 2001; $3.9 million
transferred to the Beachwalk Improvement Revenue Bonds Debt Service Fund for the fiscal 2010 redemption of the City
of Clearwater Improvement Revenue Bonds, Series 2008; $1.3 million to the to the Special Programs Fund for the
retirement incentives program; and $0.8 million to the Capital Improvements Fund for an energy efficiency performance
project.
Total actual revenues for the General Fund for fiscal 2010 were $1.2 million, or 1.1 %, greater than final budgeted
revenues. Contributing to this surplus of actual revenues versus final budgeted revenues was $0.4 million, or 2.7 %,
surplus of utility taxes versus budgeted due to a cold winter and resulting increased electric utility usage; and $0.4
million, or 3.8 %, of franchise fees in excess of final budgeted due to increased electric franchise fees from increased
consumption of electricity, also a result of the relatively cold winter weather experienced in fiscal 2010.
Finally, charges for services exceeded final budget by $0.3 million, or 2.4 %, due to a $185,000 excess in capitalized
labor charges received due to project activity, and a $135,000 excess in Parks and Recreation service fees for special
events versus final budgeted.
Fiscal 2010 actual expenditures for the General Fund were less than final budgeted expenditures by $3.8 million, or
3.4 %. This was due to budget savings across all City departments for fiscal 2010.
Capital Asset and Debt Administration
Capital Assets
Capital assets include land, buildings and building improvements, improvements other than buildings, machinery and
equipment, and infrastructure. The infrastructure asset category includes long -lived capital assets, typically stationary in
nature, such as roads, sidewalks, and bridges. At September 30, 2010, the City had investments in capital assets
totaling $653,384,655 (net of accumulated depreciation).
13
City of Clearwater, Florida - Capital Assets*
(amounts in thousands)
Governmental Activities Business -type Activities Total
2010 2009 2010 2009 2010 2009
Land $ 79,592 $ 79,291 $ 31,281 $ 31,312 $ 110,873 $ 110,603
Buildings 83,437 81,943 12,649 13,309 96,086 95,252
Improvements other than buildings 15,029 14,130 307,424 297,288 322,453 311,418
Machinery and equipment 18,673 20,680 2,665 2,772 21,338 23,452
Infrastructure 69,894 71,159 69,894 71,159
Construction in progress 10,470 13,509 22,271 16,848 32,741 30,357
Total $ 277,095 $ 280,712 $ 376,290 $ 361,529 $ 653,385 $ 642,241
* Net of accumulated depreciation
Net capital assets for the City's governmental activities decreased from $280.7 million to $277.1 million, reflecting a
decrease of $3.6 million for the current fiscal year. Capital asset additions of $22.9 were offset by depreciation expense
of $15.4 million and net capital asset retirements totaling approximately $11.1 million. Major fiscal 2010 governmental
capital asset transactions included $1.9 million in current year capital expenditures for the new Aging Well Center, $1.2
million of capital expenditures for traffic calming projects, $0.7 million of capital expenditure for energy efficiency
retrofits, $0.6 million for improvements to Carpenter Field Complex, $0.5 million in capital expenditures for infrastructure
improvements to the Long Center, $0.4 million for a fire engine replacement, and $0.3 million for fire station renovations.
Net capital assets for the City's business -type activities increased from $361.5 million to $376.3 million, reflecting an
increase of $14.8 million for the current fiscal year. Capital asset additions of $42.8 million were offset by depreciation
expense of $17.4 million and net capital asset retirements totaling approximately $10.6 million. Major fiscal 2010
business -type capital asset transactions included an additional $5.7 million for the downtown boat slips at Clearwater
Harbor Marina, an additional $8.0 million in construction in progress for reclaimed water projects, an additional $2.6
million in construction in progress for a reverse osmosis water plant expansion project, and an additional $1.6 million in
construction in progress for water wellfield expansion projects.
Additional information on the City's capital assets can be found in Note III (C) on the notes to the financial statements.
Long -term debt
The City's total long -term debt decreased from $317.0 million to $290.8 million, a decrease of $26.2 million or 8.3 %.
Long -term debt for governmental activities decreased by $11.2 million, or 19.1 %, while long -term debt for business -type
activities decreased by $15.0 million or 5.8 %. Key factors contributing to these decreases included:
• The decrease in long -term debt for governmental activities is primarily due to $7.5 million in scheduled bond
principal payments plus the early redemption of the 2008 Improvement Revenue bonds in the amount of $3.7
million.
• The decrease in long -term debt for business -type activities is primarily due to approximately $15.7 million of
scheduled bond principal payments.
The City's bonded debt as of September 30, 2010, consists entirely of revenue bonds (secured solely by specified
revenue sources) with no general obligation debt or special assessment debt outstanding. Governmental activities net
revenue bonds totaled $19.8 million while business -type activities totaled $239.4 million.
The City's Charter limits indebtedness to twenty percent of the assessed valuation of non - exempt real estate. The
current debt limitation is approximately $1.7 billion, which is significantly in excess of the City's applicable indebtedness
of approximately $249 million at September 30, 2010.
Additional information on the City's long -term debt can be found in Note III (F) of the notes to the financial statements.
14
Economic Factors and Year 2011 Budgets and Rates
Factors considered in preparing the City of Clearwater's budget for fiscal year 2011 included:
• A continued economic downturn and an additional 10% decline in property values, reflecting a 29% decline from
the point at which City property values peaked three years ago.
• The unemployment rate for the Tampa Bay metropolitan area for September 2010 was 12.4 %, an increase from
the September 2009 rate of 11.8 %. The unemployment rate for Pinellas County was also an increase — from
11.4% for September 2009 to 11.9% for September 2010. The unemployment rate for Florida similarly
increased — from 11.4% for September 2009 to 12.0% for September 2010. In contrast, the national rate
reflected a decrease — from 9.5% for September 2009 to 9.2% for September 2010.
• Total taxable assessed values for the City of Clearwater decreased approximately 10.4% for fiscal 2011. The
City's millage rate was unchanged from the fiscal 2010 rate of 5.1550 mills, reflecting a 10.52% decrease from
the fiscal 2011 rolled -back rate of 5.7610 mills.
• A reduction of 62.9 full -time equivalent positions City -wide, including a reduction in General Fund employees of
49.2 FTE's, from 1,091.1 to 1,041.9, due to service level reductions and program consolidations. The City has
reduced City -wide full -time equivalent positions by 13% and General Fund full -time equivalent positions by 19%
over the past four years.
• A decrease of $4.5 million in the actuarially required contribution to the Employees' Pension Plan, from $23.9
million, or 29.17% of covered payroll, for fiscal 2010 to $19.4, or 24.07% of covered payroll, for fiscal 2011.
• A reduction in employee medical insurance costs of $426,000, or 4 %, from fiscal 2010 due to the decrease in
employees from the prior year, while maintaining the same cost per employee as the prior year.
• Budgeted Water and Sewer utility revenues for 2011 reflect a 7% rate increase effective October 1, 2010, while
fiscal 2011 budgeted Stormwater utility revenues reflect a 6% rate increase effective October 1, 2010.
Contacting the City's Financial Management
This financial report is designed to provide a general overview of the City's finances for all those with an interest in our
government and to show the City's accountability for the money it receives. Questions concerning any of the information
provided in this report or requests for additional financial information should be addressed to: City of Clearwater,
Finance Department, 100 South Myrtle Avenue, Clearwater, Florida 33756 -5520.
15
Basic Financial Statements
ASSETS
Cash and investments
Investments
Receivables (net)
Internal balances
Due from other governments
Prepaid items
Inventories
Restricted assets:
Cash and investments
Due from other governments
Deferred charges
Net pension asset
Capital assets:
Land
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Construction in progress
Total assets
LIABILITIES
Accounts payable and other current liabilities
Accrued liabilities
Accrued interest payable
Due to other governments
Deposits
Unearned revenue and liens
Payable from restricted assets:
Construction contracts payable
Accrued interest payable
Customers deposits
Non - current liabilities due within one year:
Compensated absences
Loans and leases payable
Revenue bonds payable
Claims payable
Long -term debt and liabilities:
Unearned revenue
Compensated absences
Other postemployment benefits
Loans and leases payable
Revenue bonds payable
Claims payable
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Restricted for:
Capital projects
Debt service
Renewal and replacement
Grant programs
Impact fees
Unrestricted
Total net assets
City of Clearwater, Florida
Statement of Net Assets
September 30, 2010
Primary Government
Governmental
Activities
$ 141,785,725 $
888,327
18,454,787
(5,070,551)
5,490,963
1,282,193
478,778
174,864
6,355,870
79,591,523
83,437,254
15,029,075
18,672,892
69,894,198
10,470,092
446,935,990
2,987,158
3,469,498
114,286
190,537
2,400
797,060
4,817,971
3,198,971
920,000
1,988,300
2,564,599
3,836,620
5,079,995
18,853,500
6,106, 700
54,927,595
249,042,568
12,857,789
1,428,501
19,398,667
109,280,870
$ 392,008,395
The notes to the financial statements are an integral part of this statement.
18
Business -type
Activities
105,400,546 $
12,623,759
5,070,551
8,865,912
32,556
1,742,468
80,485,382
3,815, 941
2,194,119
2,058,520
31,280,681
12,648,540
307,424,127
2,665,251
22,271,022
598,579,375
4,835,726
1,011,009
53,067
39,299
882,760
2,367,557
3,843,269
5,862,747
1,174,060
224,438
6,850,000
187,113
624,949
1,418,880
405,522
232,558,819
262,339,215
165,704,305
21,670,054
14,850,693
7,811,318
1 26,203,790
$ 336,240,160
Total
247,186,271
888,327
31,078,546
14,356,875
1,314,749
2,221,246
80,485,382
3,815,941
2,368,983
8,414,390
110,872,204
96,085,794
322,453,202
21,338,143
69,894,198
32,741,114
1,045,515,365
7,822,884
4,480,507
167,353
190,537
41,699
1,679,820
2,367,557
3,843,269
5,862,747
5,992,031
3,423,409
7,770,000
1,988,300
187,113
3,189,548
5,255,500
5,485,517
251,412,319
6,106, 700
317,266,810
414,746,873
12,857,789
23,098,555
14,850,693
19,398,667
7,811, 318
235,484,660
$ 728,248,555
•• - all ■i r i OM r r• MI OM MI M- A-
CO
Functions /Programs
Primary government:
Governmental activities:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture and recreation
Interest on long -term debt
Total governmental activities
Business -type activities:
Water & Sewer Utility
Gas Utility
Solid Waste Utility
Stormwater Utility
Recycling
Marine
Aviation
Parking System
Harborview Center
Clearwater Harbor Marina
Total business -type activities
Total primary government
Expenses
$ 15,965,621
69,456,573
4,940,808
13,760,461
4,155,478
97,549
30,609,832
1,446,021
140,432,343
57,228,965
31,199,734
15,617,918
10,936,788
2,759,581
3,868,327
387,589
4,302,320
984,300
472,696
City of Clearwater, Florida
Statement of Activities
For the Year Ended September 30, 2010
Program Revenues
Charges for
Services
$ 21,483,776
8,965,898
330,668
857,513
124,350
Operating
Grants and Capital Grants &
Contributions Contributions
$ 13,524
3,342,965
1,516
186,927
1,857,942
5,173,668 2,158,013
36,935,873 7,560,887
55,801,441
36,621,785
18,421,616
14,717,399
2,695,561
4,064,351
332,038
4,357,803
439,751
43,938
50,000
83,121
53,528
$ 15,000
27,938
979,696
292,745
1,315,379
7,625,060
965,356
159,045
5,860
2,305,162
127, 758,218 137,495,683 186,649 11,060,483
$ 268,190,561 $ 174,431,556 $ 7,747,536 $ 12,375,862
General revenues:
Taxes:
Property taxes
Sales taxes
Utility taxes
Communications services taxes
Other taxes
Investment earnings
Miscellaneous
Transfers
Total general revenues and transfers
Change in net assets
Net assets -- beginning
Net assets -- ending
The notes to the financial statements are an integral part of this statement.
Net (Expense) Revenue and Changes in Net Assets
Primary Government
Business -Type
Activities Total
Governmental
Activities
$ 5,546,679
(57,147,710)
(4,580,686)
(11,736,325)
(2,173,186)
(97,549)
(22,985,406)
(1,446,021)
(94,620,204)
(94,620,204)
44,040,222
13,253,393
13,573,548
6,106,744
7,773,207
5,014,553
128,451
9,951,358
99,841,476
5,221,272
386,787,123
$ 392,008,395
6,197,536
5,472,051
2,803,698
4,745,967
19,101
196,024
103,494
61,343
(544,549)
1,929,932
20,984,597
20,984,597
5,284,122
(9,951,358)
(4,667,236)
16,317,361
319,922,799
$ 336,240,160
$ 5,546,679
(57,147,710)
(4,580,686)
(11,736,325)
(2,173,186)
(97,549)
(22,985,406)
(1,446,021)
(94,620,204)
6,197,536
5,472,051
2,803,698
4,745,967
19,101
196,024
103,494
61,343
(544,549)
1,929,932
20,984,597
(73,635,607)
44,040,222
13,253,393
13,573,548
6,106,744
7,773,207
10,298,675
128,451
95,174,240
21,538,633
706,709,922
$ 728,248,555
City of Clearwater, Florida
Balance Sheet
Governmental Funds
September 30, 2010
Special Capital Other Totals
General
Fund Development Improvement Governmental Governmenta
Fund Fund Funds Funds
1
1
1
ASSETS
Cash and investments $ 22,799,320 $ 4,896,353 $ 34,211,155 $ 28,676,133 $ 90,582,961
Receivables (net where applicable, of allowances
for estimated uncollectible amounts):
Accrued interest 202,045 232,760 2,217 151,409 588,431
Accounts and contracts 180,845 2,505 - 183,35
Mortgages, notes and other loans - 14,921,608 14,921,60
Rehabilitation advances - 11,877 11,87
Property taxes 242,012 15,874 257,886
Utility taxes 1,022,456 1,022,45
Franchise fees 915,554 - 915,55
Other 6,560 245,192 251,752
Due from other funds (deficit in pooled cash) - 32,512 32,51
Due from other governmental entities 2,473,264 1,482,594 393,514 1,141,591 5,490,96
Investments - 888,327 888,32
Land held for resale - 1,998,751 1,998,751
Inventories, at cost 18,894 18,89
Prepaid items - 32,512 32,51
Advances to other funds 648,827 648,827
Total assets $ 27,860,950 $ 6,630,086 $ 34,639,398 $ 48,716,227 $ 117,846,66E
LIABILITIES .
Accounts and contracts payable $ 313,702 $ $ 228,981 $ 708,988 $ 1,251,671
Accrued payroll 2,985,830 93,574 3,079,40
Due to other funds (deficit in pooled cash) 32,512 32,51
Due to other governmental entities 25,388 117,123 48,026 190,53
Deposits 2,400 - 2,400
Construction escrows - - 180,414 180,41
Deferred revenue 467,003 15,875 31,393 514,27
Advances from other funds - - 648,827 648,827
Total liabilities 3,794,323 132,998 228,981 1,743,734 5,900,03
FUND BALANCES
Reserved for:
Encumbrances 1,164,011 4,530,605 7,759 5,702,37
Debt service requirements 1,542,787 1,542,78
Interfund and notes receivable 15,570,435 15,570,43
Grant programs 2,999,587 2,999,587
Land held for resale 1,998,751 1,998,751
Unreserved, reported in:
General fund 22,902,616 - 22,902,616
Special revenue funds 6,497,088 10,766,597 17,263,68
Debt service funds 7,725,876 7,725,87
Capital projects funds 29,879,812 6,360,701 36,240,51
Total fund balances 24,066,627 6,497,088 34,410,417 46,972,493 111,946,625
Total liabilities and fund balances $ 27,860,950 $ 6,630,086 $ 34,639,398 $ 48,716,227 $ 117,846,661
The notes to the financial statements are an integral part of this statement.
20
1
1
City of Clearwater, Florida
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets
September 30, 2010
Total fund balances of governmental funds $ 111,946,625
Capital assets used in governmental activities are not financial resources, therefore,
are not reported in the funds. The cost of the assets totals $436,353,485, and the
accumulated depreciation totals $155,641,340.
Total capital assets for governmental activities $ 277,095,034
Less: Land included in governmental funds as "Land Held for Resale" (1,998,751)
275,096,283
The net pension asset related to governmental activities does not represent financial
resources and is not reported in the funds. 6,355,870
Accrued general long -term debt interest expenses are not financial uses and, therefore,
are not reported in the funds. (114,286)
Accrued property taxes are not financial resources in the current period and, therefore,
are reported as deferred revenues in the funds. 257,887
Accrued liens are not financial resources in the current period and, therefore,
are reported as deferred revenues in the funds. 179,990
Accrued permit fees are not financial resources in the current period and, therefore,
are reported as deferred revenues in the funds. 45,000
The assets and liabilities of the internal service funds (funds used to charge the costs of certain activities
to individual funds) are included in the governmental activities in the statement of net assets.
Net assets of internal service funds 48,826,510
Less: Capital assets included in total governmental capital assets above (14,541,678)
Less: Net pension asset included in total governmental net pension asset above (557,585)
Add: Capital lease purchases payable included in total governmental below 7,381,430
Add: Compensated absences included in total governmental below 874,553
Add: Other post - employment benefits included in total governmental below 526,496
Less: Adjustment to reflect the consolidation of internal service fund activities
related to enterprise funds (5,171,908)
Long -term liabilities, including bonds payable, are not due and payable in the current
period and accordingly are not reported in the funds.
Long -term liabilities at year -end consist of:
Bonds payable
Less: Deferred charge on refunding (to be amortized as interest expense)
Less: Deferred charge for issuance costs (to be amortized over life of debt)
Add: Issuance premium (to be amortized as a reduction of interest expense)
Capital lease purchases payable
Other post - employment benefits
Compensated absences
Total net assets of govemmental activities
The notes to the financial statements are an integral part of this statement.
21
(19, 750,000)
214,186
174,864
(237,686)
(8,278,966)
(3,836,620)
(7,382,570)
37,337,818
(39,096,792)
$ 392,008,395
City of Clearwater, Florida
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2010
REVENUES
Taxes:
Property
Sales
Utility
Communications services
Other taxes
Total taxes
Franchise fees
Licenses, permits, and fees
Intergovernmental:
Federal
State
Local
Total intergovernmental
Charges for services
Fines and forfeitures
Investment earnings
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture and recreation
Debt service:
Principal
Interest & fiscal charges
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over / (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
General
Fund
Special
Development
Fund
$ 41,995,263 $ 2,101,523 $
7,986,605
1.473.216
11.561,344
13,573,548
6,106, 744
2,140,167
63,815,722
10,539,828
1,559,273
10, 862,158
7,829,649
18, 691, 807
13,526,588
601,340
1,131,065
938,558
110, 804,181
12,125,754
61,796,699
3,329,941
6,058,981
1,237,253
23,741,324
108, 289, 952
206,572
1,195, 508
2, 505
12,965,929
2,514,229 12,965,929
18, 308, 869
(19,095,090)
(786,221)
1,339
(17,514,866)
(17,513,527)
1,728,008 (4,547,598)
22, 338, 619 11.044.686
$ 24,066,627 $ 6,497,088
The notes to the financial statements are an integral part of this statement.
22
Capital
Improvement
Fund
Other
Govemmental
Funds
185,925 3,070,345
588,179 757,707
2,106,098
774,104 5,934,150
1,277,005
499,498
12,477 1,021,072
35,000 733,471
821, 581 9, 465,196
482,146 3,068,478
511,210 2,425,600
100 446,748
3,069,200
1,851,685
100,200
858,183 1,283,194
11, 669, 969
1,338,853
8,092,477 2,052,622
13,013,316 24,237,349
Total
Govemmental
Funds
$ 44,096,786
7,986,605
13,573,548
6,106, 744
3,613,383
75,377,066
10,539,828
1,765,845
3,256,270
12,208,044
9,935,747
25,400,061
14, 803, 593
1,100,838
3,360,122
1,709,534
134,056,887
15,676,378
64, 733, 509
3,776,789
9,128,181
3,088,938
100,200
25,882,701
11, 669,969
1,338,853
10,145,099
145,540,617
(12,191,735) (14,772,153) (11,483,730)
10,195,710
(116,093)
10, 079, 617
(2,112,118)
36,522,535
$ 34,410,417
23,882,132
(5,621,775)
18, 260, 357
3,488,204
43,484,289
52,388,050
(42,347,824)
10,040,226
(1,443,504)
113, 390,129
$ 46,972,493 $ 111,946,625
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
City of Clearwater, Florida
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances of Governmental Funds
to the Statement of Activities
For the Year Ended September 30, 2010
Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures while governmental activities report
depreciation expense to allocate those costs over the life of the assets. This is the amount by
which capital outlays exceeded depreciation in the current period.
Expenditures for capital assets
Less current year depreciation
$ 9,847,237
(10,681,516)
$ (1,443,504)
(834,279)
In the Statement of Activities the loss on disposition of capital assets is reported. The loss is not
a use of current resources and thus is not reported in the funds. (1,261,990)
Repayment of long term debt principal is an expenditure in the governmental funds, however the
repayment reduces long -term liabilities in the Statement of Net Assets. Current year amounts are:
Revenue bond principal payments 11,155,000
Capital lease principal payments 519,581
Net pension asset is not a current financial resources and consequently is not reported in the
funds. However it is an asset in the Statement of Net Assets.
Current year change in the net pension asset
Liability for other post - employment benefits (OPEB) does not require the use of current financial resources
and consequently is not reported in the funds. However it is a liability in the Statement of Net Assets.
Current year change in the liability for other post- employment benefits
Some expenses reported in the Statement of Activities do not require the use of current financial
resources and therefore are not reported as expenditures in the governmental funds:
Current year change in compensated absences 171,633
Amortization of deferred charge on refunding (22,396)
Amortization of issuance costs (32,306)
Amortization of bond discounts and premiums 26,266
Current year change in accrued interest expense 120,384
11,674,581
(4,725,479)
(869,957)
263,581
Revenues in the statement of activities that do not provide current financial resources are not
reported as revenues in the funds:
Current year change in property taxes receivable (56,564)
Current year change in liens receivable (24,453)
Current year change in permit fees receivable 12,340
The net revenues of internal service funds (funds used to charge the costs of certain activities
to individual funds) for governmental activities are reported in the Statement of Activities but not
in the governmental funds. 2,486,996
Total change in net assets of governmental activities $ 5,221,272
The notes to the financial statements are an integral part of this statement.
23
City of Clearwater, Florida
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual (Non -GAAP Budgetary Basis)
General Fund
For the Year Ended September 30, 2010
REVENUES
Taxes:
Property
Utility taxes
Communications services
Other taxes
Total taxes
Franchise fees
Licenses, permits, and fees
Intergovernmental:
State
Local
Total intergovernmental
Charges for services
Fines and forfeitures
Investment earnings
Miscellaneous
Total revenues
EXPENDITURES
General government
City Council
City Manager's Office
City Attorney's Office
Official Records & Legislative Services
Public Communications
Finance
Human Resources
Non - Departmental
Engineering
Public Services
Planning
City Auditor's Office
Office of Management & Budget
Total general government
Public safety
Police
Fire
Development & Neighborhood Services
Total public safety
Physical environment
Engineering
Public Services
Total physical environment
Transportation
Engineering
Public Services
Total transportation
Economic environment
Economic Development
Total economic environment
Culture and recreation
Parks and Recreation
Library
Marine
Total culture and recreation
Total expenditures (budgetary basis)
Excess of revenues over expenditures (budgetary basis)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses) (budgetary basis)
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
Fund balances - ending
Budgeted Amounts
Original Final
$ 41,786,420
12,321,860
6,814,600
2.150.000
63.072,880
10,152,000
1,400,000
8,776,400
7.886.890
16.663.290
13,358,950
677,300
1,140,000
826.500
107.290.920
293,570
1,174,680
1,623, 430
1,087, 520
1,031,750
2,195,470
1,108, 350
2,354,090
61,355
15,948
1,453,960
182,410
285.690
12.868.223
37, 244, 890
21,019,610
3.166.500
61.431.000
2,791,643
725.616
3.517, 259
4,367,072
1,838.436
6.205.508
1.369.970
1.369.970
18,828,750
5,075,630
549,440
24.453.820
109.845.780
(2.554.860)
8,162, 380
(5.410.790)
2.751.590
196,730
196,730
22.338.619
$ 22.535.349
The notes to the financial statements are an integral part of this statement.
24
$ 41,941,465
13, 221,860
6,014,600
2.150.000
63.327.925
10,152,000
1,400,000
10,959,271
7.886.890
18, 846.161
13, 206, 450
605,300
1,140,000
875.500
109,553.336
301,920
1,174,680
1,623,430
1,114,520
1,031,750
2,195, 470
1,108, 350
2,452,686
61,355
15,768
1,453,960
182,410
285.690
13,001.989
38,146, 779
22, 300, 332
3.266.500
63.713,611
2,791,643
717.441
3.509.084
4,367,072
1,837.808
6.204.880
1.369.970
1.369.970
18,622,947
5,064,380
627.647
24.314.974
112.114.508
(2.561.172)
18,492,501
(19.350.128)
(857.6271
(3,418,799)
(3,418,799)
22.338.619
Variance with
Actual Final Budget
Amounts Positive (Negative)
$ 41,995,263
13, 573, 548
6,106, 744
2,140,167
63.815.722
10, 539,828
1,559,273
10,862,158
7.829.649
18.691.807
13, 526, 588
601,340
1,131,065
938.558
110.804.181
269,494
1,099,141
1,462,166
1,103, 385
914,011
2,117, 234
1,001,457
2,393,303
57,803
15,383
1,364,751
181,122
284,282
12,263.532
36,965,538
21,780,093
3.114 918
61.860.549
2,630,030
699.911
3.329 941
4,351,991
1.711.889
6.063.880
1.242.814
1.242.814
18,072,971
4,843,241
609.544
23,525.756
108.286.472
2.517.709
18,308,869
(19.095.0901
(786.221)
1,731,488
(1,167, 491)
1.164.011
1,728,008
22.338.619
$ 53,798
351,688
92,144
(9,833)
487.797
387,828
159,273
(97,113)
(57.241)
(154.354)
320,138
(3,960)
(8,935)
63,058
1.250.845
32,426
75,539
161,264
11,135
117,739
78,236
106,893
59,383
3,552
385
89,209
1,288
1.408
7$$,457
1,181,241
520,239
151,582
1.853.062
161,613
17.530
179.143
15,081
125.919
141.000
127.156
127,156
549,976
221,139
18.103
789.218
3.828.036
5.078.881
(183,632)
255,038
71.406
5,150, 287
(1,167, 491)
1.164.011
5,146,807
$ 18.919.820 $ 24 066,627 $ 5.146,807
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
City of Clearwater, Florida
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual (GAAP Basis)
Special Development Fund
For the Year Ended September 30, 2010
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes:
Property $ 2,090,670 $ 2,093,980 $ 2,101,523 $ 7,543
Sales 10,167,770 8,567,770 7,986,605 (581,165)
Other taxes 1,340,000 1,340,000 1,473,216 133,216
Total taxes 13,598,440 12,001,750 11,561,344 (440,406)
Licenses, permits, and fees 370,000 215,000 206,572 (8,428)
Investment earnings 800,000 918,000 1,195,508 277,508
Other revenue 2,505 2,505
Total revenues 14,768,440 13,134,750 12,965,929 (168,821)
EXPENDITURES
Total expenditures
Excess of revenues over expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Excess / (Deficiency) of revenues and other
sources over expenditures and other uses
Fund balances - beginning
14,768,440 13,134,750 12,965929 (168,821)
1,339 1,339
(12,423,130) (17,548,066) (17,514,866) 33,200
(12,423,130) (17,546,727) (17,513,527) 33,200
2,345,310 (4,411,977) (4,547,598) (135,621)
11 044,686 11,044,686 11,044,686
Fund balances - ending $ 13,389,996 $ 6,632,709 $ 6,497,088 $ (135,621)
The notes to the financial statements are an integral part of this statement.
25
City of Clearwater, Florida
Statement of Net Assets
Proprietary Funds
September 30, 2010
ASSETS
Current assets:
Cash and investments
Accrued interest receivable
Accounts and contracts receivable:
Billed
Unbilled charges estimated
Less: Allowance for uncollectable accounts
Total receivables, net
Due from other funds
Due from other governmental entities
Inventories, at cost
Prepaid expenses and other assets
Total current assets - unrestricted
Current assets - restricted:
Restricted cash and investments
Due from other governmental entities
Total current assets - restricted
Total current assets
Noncurrent assets:
Restricted cash and investments
Deferred charges
Other receivables
Advance to other funds
Net pension asset
Capital assets:
Land and other nondepreciable assets
Capital assets, net of accumulated depreciation
Total noncurrent assets
Total assets
Business -type
Enterprise
Water
and Sewer Gas Solid Waste
Utility Utility Utility
$ 29,025,774 $ 22,132,739 $ 18,233,239
633,622 148,005 106,659
3,155,817 972,854 984,527
2,077,200 1,412,800 665,535
5,233,017 2,385,654 1,650,062
(101,794) (44,036) (28,953)
5,131,223 2,341,618 1,621,109
3,708,570
858,090 851,668
6,130 16,113
39,363,409 25,474,030 19,977,120
8,306,191 2,448,299 945,291
3,815,941
12,122,132 2,448,299 945,291
51,485,541 27,922,329 20,922,411
63,938,637 300,000
1,577,236 272,190
187,113
837,506 445,805
21,778,958 327,285
209,200,779 41,480,690
297,520,229 42,825,970
349,005,770 70,748,299
The notes to the financial statements are an integral part of this statement.
26
468,585
1,041,913
1,982, 546
3,493,044
24,415,455
Activities
Funds Governmental
Activities -
Stonnwater Other Internal Service
Utility Funds Total Funds
$ 15,017,291 $ 20,991,503 $ 105,400,546 $ 51,202,764
101,305 161,992 1,151,583 301,873
784,417 81,665 5,979,280
1,206,700 144,911 5,507,146
1,991,117 226,576 11,486,426
(23,915) (2,665) (201,363)
1,967,202 223,911 11,285,063
- 111,925
3,715,724 1,441,618 8,865,912 -
32,710 1,742,468 459,884
10,313 32,556 1,249,681
20,801,522 22,862,047 128,478,128 53,326,127
1,761,015
1,761,015
22,562,537
2,785,949
344,693
103,391
26,404,479
45,781,260
75,419,772
97,982,309
22,862,047
203,233
3,999,068
24,292,643
28,494,944
51,356,991
27
13, 460, 796
3,815,941
17,276,737
145,754,865
67,024,586
2,194,119
187,113
2,058,520
53,551,703
322,737,918
447,753,959
593, 508, 824
53,326,127
631,007
557,585
729,591
13,812,087
15, 730, 270
69,056,397
(Continued)
City of Clearwater, Florida
Statement of Net Assets
Proprietary Funds
September 30, 2010
Business -type
Enterprise
Water
and Sewer Gas Solid Waste
Utility Utility Utility
LIABILITIES
Current liabilities:
Accounts and contracts payable 1,361,902 1,742,809 315,733
Accrued payroll 384,391 178,927 213,199
Accrued interest payable 23,138 21,249 8,680
Deposits
Unearned revenue and liens 881,743
Current portion of long -term liabilities:
Compensated absences 386,209 279,856 199,494
Revenue bonds 824,753 728,750
Notes, loan pool agreement and acquisition contracts 39,134 1,571 122,718
Advances from other funds
Claims payable
Total current liabilities (payable from current assets) 3,019,527 3,834,905 859,824
Current liabilities (payable from restricted assets):
Construction contracts payable 2,367,557
Accrued interest payable 3,052,417 56,504
Current portion of long -term liabilities, revenue bonds 4,110,247 66,250
Customer deposits 2,591,911 2,325,545 945,291
Total current liabilities payable from restricted assets 12,122,132 2,448,299 945,291
Total current liabilities 15,141,659 6,283,204 1,805,115
Noncurrent liabilities:
Compensated absences 205,577 148,966 106,191
Other postemployment benefits 487,816 229,035 333,146
Revenue bonds (net of unamortized discounts and
deferred amount on refunding) 179,135,941 14,614,753 -
Notes, loan pool agreement and acquisition contracts 41,004 255,817
Unearned revenue 187,113
Advances from other funds
Claims payable
Total non - current liabilities 180,057,451 14,992,754 695,154
Total liabilities 195,199,110 21,275,958 2,500,269
Net assets:
Invested in capital assets, net of related debt 76,282,121 26,396,651 2,645,924
Restricted for:
Revenue bond debt service and sinking fund requirements 18,106,168 66,250
Revenue bond renewal and replacement requirements 14,550,693 300,000
Water and sewer impact fees 7,496,337
Stormwater system fees -
Unrestricted 37,371,341 22,709,440 19,269,262
Total net assets $ 153,806,660 $ 49,472,341 $ 21,915,186
The notes to the financial statements are an integral part of this statement.
28
Activities
Funds Governmental
Activities -
Stormwater Other Internal Service
Utility Funds Total Funds
388,370 1,026,912 4,835,726 1,555,072
100,353 134,139 1,011,009 390,094
53,067
39,299 39,299 -
1,017 882,760 765,667
160,842
93,333
742,898
147,659 1,174,060 570,746
1,646,836
61,015 224,438 2,836,496
20,271 20,271 91,654
1,988, 300
1,430,312 9,887,466 8,198,029
2,367,557
734,348 3,843,269
1,026,667 5,203,164
5,862,747
1,761,015 17,276,737
2,503,913 1,430,312 27,164,203 8,198,029
85,616 78,599 624,949 303,807
136,853 232,030 1,418,880 526,496
38,808,125 - 232,558,819 -
108,701 405,522 4,544,934
- 187,113 -
81,086 81,086 549,921
6,106, 700
39,030,594 500,416 235,276,369 12,031,858
41,534,507 1,930,728 262,440,572 20,229,887
32,257,614 28,121,995 165,704,305 7,160,248
3,497,636 21,670,054
14,850,693
7,496,337
314,981 314,981
20,377,571 21,304,268 121,031,882 41,666,262
$ 56,447,802 $ 49,426,263 331,068,252 $ 48,826,510
Adjustment to reflect consolidation of
internal service fund activities related to
enterprise funds
Net assets of business -type activities $ 336,240,160
5,171,908
29
City of Clearwater, Florida
Statement of Revenues, Expenses, and Changes in Fund Net Assets
Proprietary Funds
For the Year Ended September 30, 2010
Operating revenues:
Sales to customers
Service charges to customers
User charges to customers
Billings to departments
Rentals
Total operating revenues
Business -type
Enterprise
Water
and Sewer Gas Solid Waste
Utility Utility Utility
$ 55,118,021 $ 35,248,392 $ 18,078,924
494,640 1,091,553 85,758
55,612,661
36,339,945 18,164, 682
Operating expenses:
Personal services 10,118,740 4,895,095 6,106,965
Purchases for resale 8,010,603 15,579,960
Operating materials and supplies 2,925,617 267,933 318,502
Transportation 958,153 520,491 3,179,034
Utility service 2,901,701 95,868 93,945
Dumping charges 4,143,668
Depreciation 11,557,402 1,912,622 221,609
Interfund administrative charges 5,996,560 2,281,050 945,380
Other current charges:
Professional fees 1,500,870 824,679 76,690
Advertising 467,759 1,521
Communications 163,816 88,728 78,401
Printing and binding 7,803 638
Insurance 867,450 402,461 180,160
Repairs and maintenance 3,086,323 607,793 102,976
Rentals 5,718 2,699
Miscellaneous 394,725 67,137 38,963
Data processing charges 433,410 328,830 143,510
Taxes 2,075,417
Total other current charges 6,446,594 4,876,325 625,558
Total operating expenses 48,915,370 30,429,344 15,634,661
Operating income (loss)
6,697,291 5,910,601 2,530,021
The notes to the financial statements are an integral part of this statement.
30
Activities
Funds Governmental
Activities -
Stormwater Other Internal Service
Utility Funds Total Funds
$ 14,170,658 $ 3,749,122 $ 126,365,117 $
66,616 7,435 1,746,002
5,974,774 5,974,774
1,968,783 1,968,783
14, 237, 274 11, 700,114 136,054, 676
2,872,091 3,577,179 27,570,070
2,420,057 26,010,620
269,892 248,252 4,030,196
767,320 500,013 5,925,011
434,204 3,525,718
4,143,668
2,398,350 1,288,184 17, 378,167
1,490, 200 1,759,675 12,472,865
477,176 495,115 3,374,530
33,326 502,606
28,879 54,310 414,134
1,676 10,117
57,540 159,881 1,667,492
570,065 406,961 4,774,118
657,285 665,702
79,676 289,798 870,299
153,120 122,320 1,181,190
54,566 2,129,983
1,366,456 2,275,238 15,590,171
9,164, 309 12, 502, 802 116, 646, 486
5,072,965 (802,688) 19,408,190
31
42,072,271
42,072,271
10,980,091
3,890,883
610,485
267,464
620,613
4,752,162
225,007
556,580
1,070,955
16,874
14,609,433
2,434,395
357,029
231,763
410,640
7,021
19,694,690
41,041,395
1,030,876
(Continued)
City of Clearwater, Florida
Statement of Revenues, Expenses, and Changes in Fund Net Assets
Proprietary Funds
For the Year Ended September 30, 2010
Business -type
Enterprise
Water
and Sewer Gas Solid Waste
Utility Utility Utility
Nonoperating revenues (expenses):
Investment earnings 2,418,325 843,507 593,727
Interest expense (8,528,170) (815,934) (21,108)
Amortization of bond issue costs (142,102) (27,974)
Gain on exchange of capital assets 202,753
Loss on exchange of capital assets - - (606)
Other 188,780 331,840 256,934
Total nonoperating revenue (expenses) (5,860,414) 331,439 828,947
Income before contributions and transfers 836,877 6,242,040 3,358,968
Capital grants and contributions
Transfers in
Transfers out
Changes in net assets
7,625,060
100,000
(3,333,108) (4,313,872) (1,029,630)
4,291,952 (4,213,872) (1,029,630)
5,128,829 2,028,168 2,329,338
Total net assets - beginning 148,677,831 47,444,173 19,585,848
Total net assets - ending $ 153,806,660 $ 49,472,341 $ 21,915,186
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
Change in net assets of business -type activities (page 19)
The notes to the financial statements are an integral part of this statement.
32
Activities
Funds Governmental
Activities -
Stormwater Other Internal Service
Utility Funds Total Funds
565,636 862,927 5,284,122
(1,772,271) (379,367) (11,516,850)
(28,053) (38,726) (236,855)
118,646 321,399
(8,383) (8,989)
480,125 369,977 1,627,656
(754,563) 925,074 (4,529,517)
4,318,402 12 2, 386 14,878,673
965,356 2,470,067 11,060,483
24,770 4,875,046 4,999,816
(718,590 (5,555,974) (14,951,174)
271,536 1,789,139 1,109,125
4,589,938 1,911,525 15,987, 798
1,699,047
(277, 719)
278,065
(12,408)
177,178
1,864,163
2,895,039
15,000
4,799,020
(4,892,500)
(78,480)
2,816,559
51,857,864 47,514,738 46,009,951
$ 56,447,802 $ 49,426,263 $ 48,826,510
329,563
$ 16,317,361
33
City of Clearwater, Florida
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2010
Business -type
Enterprise
Water
and Sewer Gas Solid Waste
Utility Utility Utility
CASH FLOWS FROM OPERATING
ACTIVITIES
Cash received from customers $ 55,337,678 $ 35,259,662 $ 18,106,084
Cash received from other funds
Cash payments to suppliers (17,754,991) (20,906,197) (4,786,741)
Cash payments to employees (9,580,027) (4,847,930) (5,641,249)
Cash payments to other funds (9,524,822) (2,369,778) (4,526,485)
Other revenues 188,780 331,840 256,934
Net cash provided by operating activities 18,666,618 7,467,597 3,408,543
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds
Transfers to other funds (3,333,108) (4,209,260) (1,029,630)
Receipt of cash on loans to /from other funds
Payment of cash on loans to /from other funds
Net cash provided (used) by noncapital financing activities (3,333,108) (4,209,260) (1,029,630)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Principal payments on debt (4,795,909) (633,023) (143,502)
Interest paid (9,302,318) (844,614) (34,957)
Acquisition of capital assets (20,347,746) (2,183,659) (431,683)
Sale of capital assets
Proceeds from issuance of debt 297,398
Capital contributed by:
Other governmental entities 7,090,207
Property owners 28,180
Developers 506,673
Net cash provided (used) by capital
and related financing activities (26,820,913) (3,661,296) (312,744)
CASH FLOWS FROM INVESTING
ACTIVITIES
Interest on investments 2,271,124 822,100 595,297
Net cash provided by investing activities 2,271,124 822,100 595,297
Net increase (decrease) in cash and cash equivalents (9,216,279) 419,141 2,661,466
Cash and cash equivalents at beginning of year 110,486,881 24,461,897 16,517,064
Cash and cash equivalents at end of year $ 101,270,602 $ 24,881,038 $ 19,178,530
Cash and cash equivalents classified as:
Cash and investments
Restricted cash and investments
$ 29,025,774 $ 22,132,739 $ 18,233,239
72,244,828 2,748,299 945,291
Total cash and cash equivalents $ 101,270,602 $ 24,881,038 $ 19,178,530
The notes to the financial statements are an integral part of this statement.
34
Activities
Funds Governmental
Activities -
Stormwater Other Internal Service
Utility Funds Total Funds
$ 14,166,719 $ 11,601,448 $ 134,471,591 $
42,072,271
(1,418,415) (5,998,153) (50,864,497) (22,337,633)
(2,686,574) (3,280,789) (26,036,569) (10,288,901)
(2,511,399) (2,290,931) (21,223,415) (1,672,635)
480,117 369,977 1,627,648 113,373
8,030,448 401,552 37,974,758 7,886,475
4,642,383 4,642,383 4,814,020
(693,820) (5,555,974) (14,821,792) (4,822,500)
2,091,652
(4,000,000) (4,000,000) (91,654)
(693,820) (4,913,591) (14,179,409) 1,991,518
(1,084,855) (9,219,235) (15,876,524) (3,153,852)
(1,819,700) (450,056) (12,451,645) (277,719)
(2,538,857) (5,061,962) (30,563,907) (3,355,728)
326,730 326,730 320,064
297,398 2,722,390
1,050,957 108,788 8,249,952
28,180
506,673
(4,392,455) (14,295,735) (49,483,143) (3,744,845
564,326 927,287 5,180,134 1,771,402
564,326 927,287 5,180,134 1,771,402
3,508,499 (17,880,487) (20,507,660) 7,904,550
16,055,756 38,871,990 206,393,588 43,298,214
$ 19,564,255 $ 20,991,503 $ 185,885,928 $ 51,202,764
$ 15,017,291 $ 20,991,503 $ 105,400,546 $ 51,202,764
4,546,964 - 80,485,382 -
$ 19,564,255 $ 20,991,503 $ 185,885,928 $ 51,202,764
35
(Continued)
City of Clearwater, Florida
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2010
Business -type
Enterprise
Water
and Sewer Gas Solid Waste
Utility Utility Utility
Reconciliation of operating income (loss) to
net cash provided by operating activities:
Operating income (loss) $ 6,697,291 $ 5,910,601 $ 2,530,021
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Other nonoperating revenue 188,780 331,840 256,934
Depreciation 11,557,402 1,912,622 221,609
Capitalized labor (234,487) (354,865)
Construction in process reclassified as expense
Change in assets and liabilities:
(Increase) decrease in accounts receivable (321,784) (52,883) (40,550)
(Increase) decrease in amount due from other governments (123,865)
(Increase) decrease in inventory (66,089) (141,005)
(Increase) decrease in prepaid expenses - -
Increase (decrease) in accounts and contracts payable 174,631 531,717 (7,139)
Increase (decrease) in deposits payable 89,270 69,667 (18,048)
Increase (decrease) in unearned revenue (1,097,067)
(Increase) decrease in net pension asset 590,002 295,174 333,332
Increase (decrease) in accrued payroll (31,705) 8,242 25,630
Increase (decrease) in other postemployment benefits 147,172 53,554 106,754
Total adjustments 11,969,327 1,556,996 878,522
Net cash provided by operating activities $ 18,666,618 $ 7,467,597 $ 3,408,543
Noncash investing, capital and financing activities:
Amortization of bond issuuance costs $ (142,102) $ (27,973) $
Amortization of premium / (discount) on bond issuance $ 558,339 $ (4,127) $
Amortization of deferred loss on defeasance of debt $ (598,638) $ (140,891) $
Capital assets transferred from General Government $ - $ - $
The notes to the financial statements are an integral part of this statement.
36
Activities
Funds Governmental
Activities -
Stormwater Other Internal Service
Utility Funds Total Funds
$ 5,072,965 $ (802,688) $ 19,408,190 $ 1,030,876
480,125 369,977 1,627,656 113,373
2,398,350 1,288,184 17, 378,167 4,752,162
(589,352)
(1,375) (1,375)
(70,555) (21,535) (507,307)
188,135 - 64,270
23,381 (183,713) (77,337)
21,980 21,980 (44,280)
(222,714) (697,006) (220,511) 1,354,800
(60,374) 80,515
(16,756) (1,113,823) -
151,665 170,399 1,540,572 646,686
(8,945) 22,534 15,756 (38,916)
42,797 103,456 453,733 149,111
2,957,483 1,204,240 18,566,568 6,855,599
$ 8,030,448 $ 401,552 $ 37,974,758 $ 7,886,475
$ (28,053) $ (38,727) $ (236,855) $
$ (32,293) $ $ 521,919 $
$ (33,207) $ $ (772,736) $
$ $ 1,000,000 $ 1,000,000 $
37
City of Clearwater, Florida
Statement of Fiduciary Net Assets
Fiduciary Funds
September 30, 2010
ASSETS
Cash and investments
Managed investment accounts, at fair value:
Cash and cash equivalents
Government bonds
Agency bonds
Domestic corporate bonds
International equity securities
Domestic stocks
Mortgage backed bonds
Commodity exchange- traded funds
Domestic equity mutual funds
International equity mutual funds
Total managed investment accounts
Securities lending collateral
Receivables:
Interest and dividends receivable
Unsettled investment sales
Securities lending earnings receivable
Accounts receivable
Total receivables
Total assets
Pension
Trust Agency
Funds Fund
$ 5,683,282 $ 427,893
44,704,028
24,980,198
20,455,943
72,061,401
80,935,525
254,000,310
73,021,510
818,343
41,444,633
29,459,722
641,881,613
119,758,961
2,060,756
35,351,583
34,219
269,756
37,716,314
805,040,170
1,916
1,916
429,809
LIABILITIES
Accounts payable 715,088
Unsettled investment purchases 39,630,890
Obligations under securities lending 119,758,961
Other miscellaneous payables:
Downtown Development Board 314,240
Special purpose funds 7,640
Other 107,929
Total miscellaneous payables 429,809
Total liabilities 160,104,939 429,809
NET ASSETS
Held in trust for pension benefits and other purposes
Total net assets
The notes to the financial statements are an integral part of this statement.
38
644,935,231
$ 644,935,231 $
City of Clearwater, Florida
Statement of Changes in Fiduciary Net Assets
Fiduciary Funds
For the Year Ended September 30, 2010
ADDITIONS
Contributions:
Contributions from employer
Contributions from employer - state tax
Contributions from employees
Total contributions
Pension
Trust
Funds
$ 15,594,733
2,057,510
6,071,578
23,723,821
Investment income:
Net appreciation in fair value of investments 69,451,442
Interest 9,010,484
Dividends 5,594,313
84,056,239
Less investment expenses:
Investment management / custodian fees 3,563,190
Net income from investing activities 80,493,049
Securities lending income:
Gross earnings
Rebate paid
Bank fees
Net income from securities lending
451,562
(43,671)
(142,598)
265,293
Total additions 104,482,163
DEDUCTIONS
Benefits and withdrawal payments:
Benefits 29,244,753
Withdrawal payments 725,713
Total benefits and withdrawal payments 29,970,466
Income before administrative expenses 74,511,697
Administrative expenses 205,876
Net increase 74,305,821
Net assets held in trust for pension benefits:
Beginning of year 570,629,410
End of year $ 644,935,231
The notes to the financial statements are an integral part of this statement.
39
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
Note I — Summary of Significant Accounting Policies
The City of Clearwater, Florida (the City) was incorporated in 1923 per Chapter 9710, Special Laws of Florida, as
amended. The City is a Florida municipal corporation governed by a five member City Council including a mayor- council-
member. The City has an estimated population of 110,000 and is located in the four - county Tampa -St. Petersburg -
Clearwater Metropolitan Statistical Area (MSA), which has an estimated population of 2,747,000.
The financial statements of the City of Clearwater, Florida, reporting entity (City) have been prepared in accordance with
generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting
Standards Board (GASB) is the standard - setting body for governmental accounting and financial reporting.
Pronouncements of the Financial Accounting Standards Board (FASB) issued after November 30, 1989, are not applied in
the preparation of the financial statements of the enterprise fund types in accordance with GASB Statement Number 20.
The GASB periodically updates its codification of the existing Governmental Accounting and Financial Reporting standards
which, along with subsequent GASB pronouncements (Statements and Interpretations), constitutes GAAP for
governmental units. The City's more significant accounting policies are described below.
A. Financial Reporting Entity
In evaluating the City as a reporting entity, management has included in the accompanying financial statements the City of
Clearwater (the primary government) and its component units, entities for which the government is considered to be
financially accountable. The City has adhered to the standards set forth in GASB Statement No. 14, as amended by GASB
Statement No. 39, in reporting the primary government (including blended component units), the reporting entity, and
related organizations.
Blended Component Unit — Clearwater Community Redevelopment Agency: Component units that meet the criteria for
blended presentation in accordance with GASB Statement Number 14, as amended by GASB Statement No. 39, are
reported in a manner similar to that of the primary government itself. Accordingly, throughout this report, data presented for
the primary government includes data of the following blended component unit. The Clearwater Community
Redevelopment Agency (CRA), created by authority of Florida Statute Chapter 163, Part III, and City of Clearwater
Resolution 81 -68, although it is legally separate, is reported as if it were part of the City (blended component unit) due to
the City Council serving as the governing board of the CRA. Separate financial statements for the CRA are not available.
However financial statements for the CRA are included in the City's comprehensive annual financial report as a
governmental non -major special revenue fund and a governmental non -major capital projects fund.
Related Organization — Clearwater Housing Authority (CHA): CHA is a public housing authority created by City Resolution
69 -5 (1969), under Section 421.04 of the Florida Statutes. CHA receives primary funding from the Federal Department of
Housing and Urban Development (HUD). The City Council appoints the governing board, however the City Council is not
able to impose its will on the CHA, nor does the City have any responsibility for the budget, debt, financing deficits, or fiscal
management of CHA. Consequently it is not a component unit of the City of Clearwater. Separate audited financial
statements of CHA as of September 30, 2010, are available from CHA.
Related Organization — Downtown Development Board: The City of Clearwater serves as administrative agent for the
Clearwater Downtown Development Board (DDB). The Downtown Development Board is an independent special district of
the City of Clearwater with an independent board elected by its members, with its own levy (0.9651 mills for fiscal 2010) on
downtown properties, and is not financially dependent upon the City. Consequently it is not a component unit of the City of
Clearwater. The DDB's cash balance held by the City as administrative agent is reflected in the City's fiduciary agency
fund. Separate audited financial statements of the DDB as of September 30, 2010, are available from the DDB.
Jointly governed organization — Florida Gas Utility: The City of Clearwater is a member of the Florida Gas Utility (FGU), a
non - profit municipal public entity created for the sole purpose of reducing the costs of purchased gas for its members. FGU
is a public body corporate and politic pursuant to Section 163.01 Florida Statutes (the Florida Interlocal Cooperation Act),
as amended, and the Interlocal Agreement, dated September 1, 1989, which was subsequently amended by the Amended
Interlocal Agreement on June 1, 1992, amended and restated by the Amended and Restated Interlocal Agreement, dated
July 1, 1996, and thereafter amended and restated by the Second Amended and Restated Interlocal Agreement, dated
July 27, 1999, (the Interlocal Agreement), executed and delivered among FGU and its members, which include
municipalities, municipal utilities, and an interlocal agreement consisting of such entities. Due to the diverse needs of
40
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
municipal utility systems, FGU established itself as a project- oriented agency. Under this structure, each member has the
option whether or not to participate in a project. FGU has the authority to, among other things, plan, finance, acquire,
construct, manage, operate, deliver, service, utilize, own, broker, exchange, and distribute natural gas, or other energy and
energy services, pursuant to the Interlocal Agreement. As of September 30, 2010, FGU has 25 members. Separate
audited financial statements of FGU as of September 30, 2010, are available from FGU.
B. Basic Financial Statements Under the New Financial Reporting Model
The City's Basic Financial Statements contain three components: government -wide financial statements, fund financial
statements, and notes to the financial statements.
1. Government -wide financial statements. The government -wide financial statements report information on all of the
nonfiduciary activities of the primary government and its component unit using the accrual basis of accounting, which is
similar to the accounting used by private- sector businesses. For the most part, the effect of interfund activity has been
removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for
support.
The statement of net assets presents information on all of the assets and liabilities of the City. The difference between
assets and liabilities is reported as net assets. Changes in net assets may serve as an indicator of whether the financial
position of the City is improving or deteriorating.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset
by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program
revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function or segment. The operating grants include operating - specific and
discretionary (either operating or capital) grants while the capital grants column reflects capital - specific grants. Taxes and
other items not properly included among program revenues are reported instead as general revenues. All revenues and
expenses are reported as soon as the underlying transaction has occurred, regardless of when cash is received or paid.
As a general rule the effect of interfund activity has been eliminated from the government -wide financial statements.
Exceptions to this general rule are payments -in -lieu of taxes and other quasi - external charges between enterprise funds
and various other functions of the government. Elimination of these charges would distort the direct costs and program
revenues reported for the various functions concerned.
2. Fund financial statements. Separate financial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government -wide financial statements. An emphasis is on the
major funds in either the governmental or business -type categories. Major individual governmental funds and major
individual enterprise funds are reported as separate columns in the fund financial statements. Non -major funds (by
category) are summarized into a single column.
The City reports the following major governmental funds:
The General Fund is the government's primary operating fund. It accounts for all financial resources of the general
government, except those required to be accounted for in another fund.
The Special Development Fund is a special revenue fund used to account for impact fees, property taxes for road
improvements, local option gas taxes, infrastructure taxes, and other revenues which are restricted legally or by City
Council policy to be used for specific capital improvement projects.
The Capital Improvement Fund is used to provide combined accounting presentation for all City capital improvement
projects except those financed from proprietary funds or bond proceeds where bond ordinance provisions require the
segregation of bond proceeds in separate funds.
41
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
The City reports the following major proprietary funds:
The Water and Sewer Utility enterprise fund is used to account for the financing, construction, operation, and maintenance
of the water and sewer services of the City from charges made to users of the service.
The Gas Utility enterprise fund is used to account for the financing, construction, operation, and maintenance of the gas
services of the City from charges made to the users of the service.
The Solid Waste Utility enterprise fund is used to account for the financing, construction, operation, and maintenance of the
solid waste services of the City from charges made to the users of the service.
The Stormwater Utility enterprise fund is used to account for the financing, construction, operation, and maintenance of the
stormwater management system of the City from charges assessed against each developed property.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with the proprietary
fund's principal ongoing operations. Operating expenses for proprietary funds include the cost of sales and service,
administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are
reported as nonoperating revenues and expenses.
Additionally, the City reports the following fund types:
Internal service funds account for fleet management, information technology, telephone, graphics, employee relations,
facilities management, radio communications, insurance, and risk management services provided to other City
departments on a cost reimbursement basis. The Garage, Administrative Services, General Services, and Central
Insurance funds primarily benefit governmental funds and are consequently included as governmental activities.
Pension trust funds account for the financial operation and condition of the Employees' Pension Plan, the Firefighters'
Relief and Pension Plan, the Police Supplemental Pension Plan, and the Firefighters Supplemental Pension Plan.
The Treasurer's Escrow Agency Fund accounts for the receipt, custody, and expenditure of monies held temporarily in an
agency capacity for other parties.
The pension trust funds and the agency fund are fiduciary funds used to account for resources held for the benefit of
parties outside the government. Fiduciary funds are not included in the government -wide financial statements because the
resources of these funds are not available to support the City's own programs.
When both restricted and nonrestricted resources are available for use, it is the City's practice to use restricted resources
first, then unrestricted resources as needed.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources measurement focus and the accrual
basis of accounting, as are the proprietary fund and fiduciary fund financial statements. The agency fund included within
the fiduciary fund financial statements also uses the accrual basis of accounting but does not have a measurement focus.
Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of
related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar
items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the
modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available.
Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to
pay liabilities of the current period. For this purpose, the City considers property tax revenues to be available if they are
collected within 60 days of the end of the current fiscal year. Other revenues are considered to be available if they are
collected within 90 days of fiscal year -end. Expenditures generally are recorded when a liability is incurred, as under
accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and
claims and judgments, are recorded only when payment is due.
Intergovernmental revenues, representing grants and assistance received from other governmental units, are generally
42
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
recognized as revenues in the period when all eligibility requirements, as defined by GASB Statement 33, have been met,
and funds are available from the grantor agency or government.
Taxes, franchise fees, licenses, and interest associated with the current fiscal period are all considered susceptible to
accrual and so have been recognized as revenues of the current fiscal period for the governmental funds. All other revenue
items are considered to be measurable and available only when cash is received by the City.
D. Assets, Liabilities, and Net Assets or Equity
1. Deposits, pooled cash, and investments
Investments with original maturities of three months or less are considered to meet the definition of cash equivalents. The
majority of the investments in which the City's funds have equity are held by the City's consolidated pool of cash and
investments. The City utilizes the consolidated cash pool to account for cash and investments of all City funds other than
those that are required by ordinance to be physically segregated. The consolidated cash pool concept allows each
participating fund to benefit from the economies of scale and improved yield that are inherent to a larger investment pool.
Formal accounting records detail the individual equities of the participating funds. The cash pool utilizes a single checking
account for all City receipts and disbursements.
Since fund equities in this cash management pool have the general characteristics of demand deposits in that additional
funds may be deposited at any time and also funds may be withdrawn at any time without prior notice or penalty, each fund's
equity account is considered a cash equivalent regardless of the maturities of investments held by the pool.
All individual fund cash equity in a deficit (overdraft) position with respect to the consolidated cash pool is reclassified at
year -end to short-term interfund payables to the Capital Improvement Fund. The Capital Improvement Fund is the fund
selected by management to reflect the offsetting interfund receivables in such cases.
The City has an agreement with its depository bank to provide that all excess cash is swept daily and automatically into an
overnight money market account which pays interest at the federal funds rate, with no requirement for a minimum
compensating balance. The fed funds rate range was 0.00% to 0.25% at September 30, 2010. This account is
collateralized through the State of Florida Public Deposits Program.
Under City Charter and the current Investment Policy, adopted by the City Council on September 9, 2010, consolidated
cash pool investments are limited to the following: United States Government Securities, Certificates of Deposit in Local
Banks, Repurchase Agreements, Savings Accounts in Local Banks, Federal Government Agency Securities, Municipal
Bonds issued by governmental entities within the state of Florida (other than City of Clearwater issues), and State of
Florida Bonds. All investments are reported at fair value.
The City utilizes a very conservative investment philosophy when it invests its pooled cash funds in that the return of the
principal is more important than the return on the principal. The City does not actively trade its portfolio and generally holds
investments until maturity. Through the use of a laddered approach to maturities and by timing maturities to cash needs, the
City does not anticipate selling investments to meet cash flow requirements.
Under the City's Investment Policy, a performance measurement standard has been established. The performance measure
chosen is a weighted average of: the overnight interest rate; and three month, six month, one year, three year, five year, and
ten year Treasury rates, respectively. For the fiscal year ended September 30, 2010, the performance measure weighted
average was 0.97 %. The actual pooled cash earnings performance before bank charges was 2.76 %.
Investments being held outside of the consolidated cash pool include escrowed debt service investments and employee
retirement investments. Permissible escrowed debt service investments are specifically defined in each individual debt
instrument, but generally follow the same limitations applicable to consolidated cash pool investments. The City maintains
four different employee retirement programs, and each one has its own list of permitted investments. Generally, each plan
allows the same type of investments as the consolidated cash pool, but additionally allows some portion of its assets to be
invested in corporate bonds, notes of corporations, and stocks that are listed on one or more of the recognized national or
international stock exchanges.
2. Receivables and payables
Activity between funds that are representative of lending /borrowing arrangements outstanding at the end of the fiscal year
are referred to as either "due to /from other funds" (i.e. the current portion of interfund loans) or "advances to /from other
funds" (i.e. the non - current portion of interfund loans). All other outstanding balances between funds are reported as "due
to /from other funds." Any residual balances outstanding between the governmental activities and business -type activities
43
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
are reported in the government -wide financial statements as "internal balances ".
Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in
applicable governmental funds to indicate that they are not available for appropriation and are not expendable available
financial resources.
All trade and property tax receivables are shown net of an allowance for uncollectibles. Trade accounts receivable less
than 60 days are included in the trade accounts receivable allowance for uncollectibles at the five -year average loss
experience rate of 3.27 %. Trade accounts receivable in excess of 60 days are reserved at 40 %. The property tax
receivable allowance for uncollectibles is 10% of the current year portion of the receivable, and 30 %, 50 %, 70 %, 90 %, and
95% for the receivable portions attributable to the prior five years respectively (fiscal 2009 thru 2005), and 100% of the
receivable attributable to fiscal years 2004 and prior.
Property tax revenue is recognized in the fiscal year for which the taxes are levied, provided the availability test is met, in
conformance with NCGA Interpretation No. 3. Property taxes for the following fiscal year are levied by Council action in
September of each year. This levy is apportioned to property owners based on the previous January 1 assessed values.
Tax bills are mailed out on or about November 1, and the collection period runs from November 1 through March 31. On
April 1, unpaid property taxes are considered delinquent and become a lien. Tax certificates are sold in June for real
property with delinquent taxes.
Since taxes are not collected prior to November 1, the City does not record revenue for advance collections. Uncollected
taxes receivable at year -end are recorded, with an appropriate allowance for estimated uncollectible amounts. The net
amount deemed to be collectible but not current (not expected to be collected within sixty days after the close of the fiscal
year) is shown as deferred revenue in the appropriate fund.
All delinquent property taxes, except those levied specifically for the restricted purposes of financing activities accounted
for in the Special Development Fund, are recorded in the General Fund. Property tax revenues are recognized in the
General Fund and the required transfers to the appropriate debt service or pension fund are recorded as operating
transfers from the General Fund.
The City is permitted by State law to levy ten mills without referendum. Additional millage not subject to the ten mill
limitation is authorized if approved by referendum. The tax rate of 5.1550 mills for the year ended September 30, 2010,
reflects a 9.1% increase from the prior year millage rate of 4.7254.
Water, gas, solid waste, stormwater, and recycling charges to customers are based on actual consumption. Consumption
is determined on a monthly cycle basis. The City recognizes the unbilled consumption as revenue as of September 30t n.
3. Inventories and prepaid items
Inventories of proprietary funds are stated at cost and valued on the first -in first -out (FIFO) basis. In govemmental funds, the
majority of inventory items are accounted for under the purchases method, which provides that expenditures are recognized
when the inventory item is purchased. The only governmental fund inventory that is accounted for under the consumption
method is the General Fund inventory of items for resale at the City's public fishing pier. Under the consumption method, the
expenditure is recognized when the inventory item is sold (or consumed).
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both
government -wide and fund financial statements.
4. Restricted assets
Certain resources of the City's enterprise funds are classified as restricted assets. Restricted assets include: Water and
Sewer improvement charges restricted by the authorizing ordinances to the construction of additions and improvements to the
water and sewer systems; Gas Utility and Solid Waste Utility restricted customer deposits; and assets of the Water & Sewer
Utility, Gas Utility, and Stormwater Utility funds restricted under the provisions of authorizing ordinances for revenue bonds to
the payment of future revenue bond debt service, system construction, and renewals and replacements.
5. Capital assets
Capital assets, which include property, plant, equipment, and certain infrastructure assets, (e.g. roads, bridges, etc.) are
reported in the applicable governmental or business -type activities columns in the government -wide financial statements.
Capital assets, as defined by the City, are assets with an initial individual cost of more than $5,000 (amount not rounded).
Individual assets that cost Tess than $5,000, but that operate as part of a network system, may be capitalized in the
aggregate, using the group method. Additionally, higher thresholds for capitalization apply to the following categories: land
improvements, $50,000; buildings, building improvements, and utility systems, $100,000; intangible assets, $100,000; and
44
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
infrastructure, $500,000. Capital assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at estimated fair value at the date of donation. The costs of normal
maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the
construction phase of capital assets of business -type activities is included as part of the capitalized value of the assets
constructed. The total interest expense incurred by business -type activities during the current fiscal year was $12,372,521.
Of this amount, $731,096, $54,882, and $69,693 were included as part of the cost of capital assets under construction in
connection with water & sewer, gas, and stormwater system projects, respectively. These interest expense amounts were
netted against related project interest earnings of ($1,366,341), $ -0 -, and $ -0 -, respectively, to arrive at net capitalized
interest of ($635,245), $54,882, and $69,693 for water & sewer, gas, and stormwater system projects, respectively.
Property, plant, equipment, and intangible assets of the primary government are depreciated using the straight -line method
over the following estimated useful lives:
Assets Years
Buildings & building improvements 10 -40
Public domain infrastructure 20 -40
Utility systems 18 -40
Machinery & equipment 5 -15
Vehicles 5 -10
Intangible assets 5 -20
6. Compensated absences
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. Vacation and sick
leave "caps" vary depending upon an employee's bargaining unit, hire date, etc, but generally employees may accumulate
vacation time not exceeding 320 hours and sick leave not exceeding 1,560 hours. Upon retirement from City service a
qualified employee is paid for all vacation time not exceeding the applicable vacation "cap" and one -half of accumulated
unused sick leave not exceeding the sick leave cap (i.e. maximum pay -out of 780 hours for an employee with a 1,560 hour
cap). The City accrues for all earned but unused vacation pay up to the applicable cap and the portion of unused sick leave
estimated to be payable upon retirement. The current portion of compensated absences is the amount estimated to be used
in the following year. For governmental activities, compensated absences are liquidated within the same govemmental funds
where the employee vacation and /or sick leave was earned.
7. Long -term obligations
In the government -wide financial statements, and proprietary fund types in the fund financial statements, long -term debt and
other long -term obligations are reported as liabilities in the applicable governmental activities, business -type activities, or
proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and
amortized over the life of the bonds using the straight -line method. Bonds payable are reported net of the applicable bond
premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance
costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received
on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing
uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service
expenditures.
8. Fund equity
In the fund financial statements, govemmental funds report reservations of fund balance for amounts that are not available for
appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent
tentative management plans that are subject to change.
45
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
Note II — Stewardship, Compliance, and Accountability
A. Budgets and budgetary accounting
Annual budgets are legally adopted for the General Fund, Special Development special revenue fund, and the Community
Redevelopment Agency special revenue fund. The budget for the Special Development Fund is adopted on a basis
consistent with GAAP, and appropriations lapse at year -end. Appropriations for open encumbered purchase orders at year-
end in the General Fund do not lapse, but rather continue until liquidated or otherwise cancelled by City Council action. For
the General Fund budgetary comparison statements, actual expenditures have been adjusted to include end -of -year
encumbrances and to exclude beginning -of -year encumbrances, in order to provide a meaningful comparison. Except for the
treatment of encumbrances and certain transactions relating to interfund loans, the General Fund Budget is adopted on a
basis consistent with GAAP, and all non - encumbered appropriations lapse at year -end.
The level of budgetary control established by the legislative body, the level on which expenditures may not legally exceed
appropriations, is the individual fund. In accordance with provisions of Ordinance 5025 -90 and with Section 2.519(4) of the
Clearwater Code, the City Manager may transfer part or all of any unencumbered appropriation balance among programs
within an operating fund, provided such action does not result in the discontinuance of a program. Such transfers must be
included in the next budget review presented to the City Council. Upon detailed written request by the City Manager, the
City Council may by ordinance transfer part or all of any unencumbered appropriation balance from one fund to another.
As established by administrative policy, department directors may transfer money from one operating code to another
within a program without a formal written amendment. Formal requests for budget amendments from department directors
are required for transfers, capital expenditures, and reserves. Thus, certain object classifications within departmental
and /or program budget appropriations are subject to administratively imposed controls, in addition to the legal controls
imposed by City Council action described above.
The Community Redevelopment Agency (CRA) Fund annual budget is adopted by the trustees of that agency in accordance
with state law. The level of budgetary control is the total fund. The CRA Fund Budget is adopted on a basis consistent with
GAAP, and all appropriations lapse at year -end.
Budget amounts presented in the accompanying financial statements reflect all amendments adopted by the City Council
and the governing board of the component unit. All amendments were adopted in conformance with legal requirements.
Individual amendments, as well as the net effects of all amendments during the fiscal year, were not material in relation to
the original appropriations for the governmental funds in the aggregate.
Budgets for the Capital Projects Funds, the Special Programs Fund, the Local Housing Assistance Trust Fund, and the
Pinellas County Local Housing Assistance Trust Fund are adopted on a multi -year completed program basis, where
budgetary appropriations do not lapse at year -end, but may extend across two or more fiscal years. A comparison of annual
results with these budgets would not be meaningful and is therefore not included in this report.
All City Council adopted budgets are integrated into the formal accounting system to allow for monthly comparison of
projected and actual results in all funds for which budgets are adopted.
Note III — Detailed Notes on All Funds
A. Deposits and investments
Investments with original maturities of three months or less are considered to meet the definition of cash equivalents. The
majority of the investments in which the City's proprietary funds have equity are held by the City's consolidated pool of cash
and investments. Since fund equities in this cash management pool have the general characteristics of demand deposits, in
that additional funds may be deposited at any time and also funds may be withdrawn at any time without prior notice or
penalty, each fund's equity account is considered a cash - equivalent regardless of the maturities of investments held by the
pool. Funds with deficit (overdraft) positions within the consolidated pool report the deficits as interfund payables to the City's
Capital Improvement Fund.
46
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
Deposits
All cash of the City is entirely insured either by federal depository insurance or via banks' participation as qualified public
depositories pursuant to Florida Statutes, Chapter 280, "Security for Public Deposits ". The City is required to verify that
monies are invested in "qualified public depositories" as defined in Florida Statutes section 280.02.
Pooled Cash and Investments
To increase returns and minimize fees, the City follows the practice of pooling available cash and investments of all funds
with the exception of retirement plan investments and assets held under Bond Trust Indenture Agreements. Please refer
to Note (I)(D)(1) for a discussion of allowable investments under the pooled cash and investments investment policy. All
investments at year -end were in compliance with the pooled cash and investments investment policy.
At year -end, the government's cash and investment balances were as follows, excluding pension plan investments and
investments held under Bond Trust Indenture Agreements:
Carrying % of Weighted avg Moody's
Pooled Cash and Investments Amount Portfolio maturity (years) Rating
Cash and cash equivalents:
Cash on hand $ 57,602 0.0% n/a n/a
Cash in bank 24,248,178 7.3% n/a n/a
Total cash and cash equivalents 24,305,780 7.3% n/a n/a
Investments:
Treasuries 5,172,110 1.5% 3.45 n/a
U.S. Agencies
Government National Mortgage Assn (GNMA) 18,114,067 5.4% 1.32 Aaa
Federal Farm Credit Bank (FFCB) 25,058,432 7.5% 4.01 Aaa
Federal Home Loan Bank (FHLB) 75,386,977 22.6% 3.57 Aaa
Federal Home Loan Mortgage Assn (FHLMC) 42,206,476 12.6% 3.44 Aaa
Federal Home Loan Mortgage Assn Zeroes 2,987,672 0.9% 5.30 Aaa
Federal National Mortgage Assn (FNMA) 69,637,810 20.9% 4.00 Aaa
Federal National Mortgage Assn (FNMA) Zeroes 8,533,492 2.6% 9.26 Aaa
Dept of Housing and Urban Development (HUD) 6,619,243 2.0% 5.97 Aaa
Student Loan Marketing Association (SLMA) 7,237,654 2.2% 2.30 Aaa
Student Loan Marketing Association (SLMA) 8,160,711 2.4% 4.38 Baal
Tennessee Valley Authority (TVA) 5,476,414 1.6% 3.45 Aaa
Tennessee Valley Authority (TVA) Zeroes 7,432,565 2.2% 3.62 Aaa
Other Government Sponsored Agencies 7,383,094 2.2% 1.47 Aaa
Other Government Sponsored Agencies - Zeroes 3,369,532 1.0% 0.40 Aaa
Total U.S. Agencies 287,604,139 86.2%
Municipal bonds 9,925,537 3.0% 2.57 Aa2 /Aa3 /A2
Municipal bonds 2,508,273 0.8% 5.11 Baal /NR
Total municipal bonds 12,433,810 3.7%
Collateralized mortgage obligations 4,266,989 1.3% 1.71 Aaa
Total investments 309,477,048 92.7%
Total pooled cash and investments $ 333,782,828 100.0% 3.34
Cash and investments as of September 30, 2010 are classified in the accompanying financial statements as follows:
47
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
Statement of net assets 09/30/10
Primary Government:
Cash and investments $ 247,186,271
Restricted cash and investments 80,485,382
Fiduciary Funds:
Cash and investments - pension funds 5,683,282
Cash and investments - agency fund 427,893
Total cash and investments per CAFR $ 333,782,828
Interest Rate Risk — Pooled Cash and Investments:
As a means of limiting exposure to fair value losses arising from rising interest rates, the City's pooled cash investment
policy prohibits investments in securities maturing more than fifteen years from the date of purchase, unless matched to a
specific cash flow requirement. Additionally, the policy allows no more than 10% of the portfolio to have maturities in
excess of ten years unless specifically matched against a debt or obligation. Finally, the policy requires that the weighted
average maturity be three years or less, except for temporary situations due to market conditions and /or cash needs when
the average maturity may exceed three years but shall not exceed four years. Weighted average maturities for the City's
pooled cash investments are indicated in the table above.
Credit Risk — Pooled Cash and Investments:
The City's pooled cash investment policy, in accordance with Florida Statutes, allows investments to direct obligations of the
United States, federal agencies, debt issued by the State of Florida or any political subdivision, and commercial paper of
prime quality of the highest letter and numerical rating as provided by at least one nationally recognized rating service.
Ratings for the City's pooled cash investments are disclosed in the preceding table.
Concentration of Credit Risk — Pooled Cash and Investments:
The City's pooled cash investment policy limits the investment in any one issuer to 40% of the portfolio. Concentrations for
several issuers exceeded 5% as disclosed in the preceding table, though none exceeded the 40% limit per the policy.
Bond Trust Indenture Agreement / Debt Service Investments
The City invests in certain prescribed investments per the terms of revenue bond trust indenture agreements. As of
September 30, 2010, these consisted of:
Carrying % of Weighted avg Moody's
Bond Trust Indenture Debt Service Investments Amount Portfolio maturity (years) Rating
Investments:
Commercial paper $ 888,327 100.0% 0.34 Al / P -1
Total investments 888,327
Total pooled cash and investments $ 888,327
Pension Plan Assets
The City reports four pension funds in the accompanying financial statements. Each of the plans has a separate governing
board of trustees, a separate investment policy, and differing investment restrictions /risks. Consequently each is disclosed
separately below. All investments at year -end were in compliance with the respective plan investment policies. Please
refer to Note (I)(D)(1) for a discussion of allowable investments under the pension plans.
Employees Pension Plan
At year -end, the Employees' Pension Plan cash and investment balances were as follows:
48
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
Employees' Pension Plan Cash and Investments
Cash and cash equivalents:
Cash and cash equivalents - pooled cash
Cash in managed investment accounts
Total cash and cash equivalents
Investments:
Government bonds
Government bonds
Government bonds
Government bonds
Treasuries - strips
Treasuries - index linked
U.S. agencies
U.S. agencies
U.S. agencies
Domestic corporate bonds
Domestic corporate bonds
Domestic corporate bonds
Domestic corporate bonds
Domestic corporate bonds
Domestic corporate bonds
Domestic corporate bonds
International equity securities
Domestic stocks
Mortgage backed bonds
Commodity exchange traded notes
Domestic equity mutual funds
International equity mutual funds
Total investments
Total cash and investments
Interest Rate Risk — Employees' Pension Plan:
Carrying
Amount
$ 2,147,576
44,269,308
46,416,884
14,716,923
508,946
3,174,778
699,830
393,310
1,312,824
15,867,621
414,430
205,233
1,816,234
6,630,290
24,745,673
26,809,695
4,438,935
3,462,667
260,753
77,868,022
246,319,113
72,356,017
818,343
38,754,649
28,791,544
570,365,830
$ 616,782,714
% of
Portfolio
0.3%
7.2%
2.4%
0.1%
0.5%
0.1%
0.1%
0.2%
2.6%
0.1%
0.0%
0.3%
1.1%
4.0%
4.3%
0.7%
0.6%
0.04%
12.62%
39.9%
11.7%
0.1%
6.3%
4.7%
100.0%
Weighted avg S &P
maturity (years) Rating
n/a n/a
n/a n/a
11.7
14.1
14.4
27.8
10.6
n/a
n/a
24.3
n/a
n/a
n/a
AAA
AA-
A-
BBB
AAA
AAA
AAA
A
NR
MA
AA+ AA AA-
A+ A A-
BBB+ BBB BBB -
BB+ BB BB-
B B-
CCC+ D NR
n/a
n/a
AAA
n/a
n/a
n/a
As a means of limiting exposure to fair value losses arising from rising interest rates, the Employees' Pension Plan
investment policy limits the investment in fixed income investments to no more than 50% of the portfolio. There are no
limits related to weighted average maturities due to the long -term nature of pension plan investing.
Credit Risk — Employees' Pension Plan:
The Employees' Pension Plan investment policy limits credit risk by restricting equity investments to corporations that are
listed on one of the national or international stock exchanges. Additionally, fixed income corporate bonds must carry an
"investment grade" rating as established by one of the nationally recognized rating agencies. At September 30, 2010, the
Plan had $8,162,355 invested in domestic corporate bonds that had fallen below investment grade as the result of
investment downgrades, as indicated on the table above. The respective money managers notified the Plan administrators
of the downgrades and the planned courses of action related to these securities on a timely basis, consistent with the
policy's individual manager guidelines.
Concentration of Credit Risk — Employees' Pension Plan:
The Employees' Pension Plan investment policy limits concentration of credit risk by limiting the investment in common
stock or capital stock of any one corporation to 3% of the plan equity assets, unless due to a higher percentage included in
a nationally recognized market index at least as broad as the Standard and Poor's Composite Index of 500 companies, or
upon a specific finding by the investment committee that such higher percentage is in the best interest of the fund.
49
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
Additionally, the individual manager guidelines associated with the policy provide further diversification of both equity and
fixed income investments to minimize concentration of credit risk.
Foreign Currency Risk — Employees' Pension Plan:
Risk of loss arises from changes in currency exchange rates. The Employees' Pension Plan investment policy does not
have a formal policy to limit foreign currency risk, other than a guideline of no more than 25% of the plan assets invested in
international equities. The Pension Plan's exposure to foreign currency risk is as follows:
Investment Currency Fair Value
Common stock Chinese Yan Renminibi $ 6,471,391
Common stock Brazil Real 5,700,997
Common stock South Korea Won 4,523,071
Common stock Hong Kong Dollar 4,358,630
Common stock South Africa Rand 4,305,963
Common stock India Rupee 4,138,080
Common stock Taiwan Dollars 3,833,706
Common stock Mexico Pesos 3,230,122
Common stock Euro 3,285,553
Common stock Russian Ruble 3,141,461
Common stock British Pound 2,271,750
Common stock Japanese Yen 2,059,259
Common stock Thailand Bath 1,856,595
Common stock Malaysia Ringgit 1,824,032
Common stock Indonesia Rupiah 1,445,895
Common stock Poland Zloty 1,414,428
Common stock Turkey Liras 1,306,320
Common stock Chile Peso 1,263,337
Common stock Singapore Dollar 1,045,454
Common stock Egypt Pound 935,393
Common stock Czeck Rep Koruna 885,363
Common stock Norwegian Krone 841,474
Common stock Peru nuevo sol 781,422
Common stock Hungary Forint 731,585
Common stock Columbian Peso 701,010
Common stock Philippines Peso 663,785
Common stock Swiss Franc 637,639
Common stock Swedish Krona 546,174
Common stock Kuwait Dinar 518,248
Common stock U.A.E. Emirati Dirham 437,631
Common stock Morocco Dirham 428,994
Common stock Qatar Rial 423,236
Common stock Austrailian Dollar 256,917
Common stock Argentian Peso 256,245
Common stock Romania N'ew Leu 230,332
Common stock Croatia Kuna 224,574
Common stock Kazakhstan Tenge 224,574
Common stock Canadian Dollar 214,433
Common stock Kenya Shilling 207,299
Common stock Oman Rial 207,299
Common stock Saudi Arabia Saudi Riyal 207,299
Common stock Mauritius Rupee 204,420
Common stock Various Others 1,380,694
Total $ 69,622,084
50
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
Firefighters' Relief and Pension Plan
At year -end, the Firefighters' Relief and Pension Plan cash and investment
Cash and cash equivalents:
Cash and cash equivalents
Total cash and cash equivalents
Investments:
U.S. agency - Federal Nat'l Mortgage Assn. (FNMA)
U.S. agency - Federal Agricultural Mortgage Corp. (FAMCA)
U.S. agency - Federal Home Loan Bank (FHLB)
Total investments
Total managed cash and investments
balances were as follows:
Carrying % of Weighted avg Moody's
Amount Portfolio maturity (years) Rating
$ 3,521,390
3,521,390
51.3% n/a
1,228,812 17.9%
1,108,815 16.2%
1,000,688 14.6%
3,338,315
$ 6,859,705 100.0%
3.34
4.53
3.57
n/a
Aaa
Aaa
Aaa
Interest Rate Risk — Firefighters' Relief and Pension Plan:
As a means of limiting exposure to fair value losses arising from rising interest rates, the Firefighters' Relief and Pension
Plan investment policy limits the target investment in fixed income investments to no more than 70% of the portfolio. There
are no limits related to weighted average maturities due to the long -term nature of pension plan investing.
Credit Risk — Firefighters' Relief and Pension Plan:
The Firefighters' Relief and Pension Plan investment policy limits credit risk by restricting the fixed income investments to
investment grade securities, per a nationally recognized ranking agency.
Concentration of Credit Risk — Firefighters' Relief and Pension Plan:
The Firefighters' Relief and Pension Plan investment policy limits concentration of credit risk by limiting the target allocation
of the plan to domestic fixed income to 70% of the portfolio, with the remainder of the portfolio allocated to the City's well -
diversified pooled cash portfolio (see above disclosure). There are no additional limitations on concentrations with
individual issuers or agencies due to the relatively small portfolio of this closed pension plan.
Foreign Currency Risk — Firefighters' Relief and Pension Plan:
The Firefighters' Relief and Pension Plan investment policy does not permit investment in foreign fixed income or equity
securities.
Police Supplemental Pension Plan
At year -end, the Police Supplemental Pension Plan cash and investment balances were as follows:
51
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
Cash and cash equivalents:
Cash in bank
Cash in managed investment accounts
Total cash and cash equivalents
Investments:
Treasuries
U.S. agencies
Domestic corporate bonds
Domestic corporate bonds
Domestic corporate bonds
International equity securities
Domestic stocks
Mortgage backed bonds
Mortgage backed bonds
Total investments
Total managed cash and investments
Carrying
Amount
% of Weighted avg
Portfolio maturity (years)
$ 14,316 0.1%
196,412 1.4%
210,728
2,931,414
630,344
293,294
829,875
16,268
3,067,503
6,178,276
36,203
3,593
13,986,770
20.6%
4.4%
2.1%
5.9%
0.1%
21.6%
43.5%
0.3%
0.0%
$ 14,197,498 100.0%
n/a
n/a
n/a
7.44
3.49
5.11
n/a
n/a
31.80
Moody's
Rating
n/a
n/a
n/a
Aaa
Aaa
Aal Aa2 Aa3
Al A2 A3
Baal
n/a
n/a
Aaa
NR
Interest Rate Risk — Police Supplemental Pension Plan:
As a means of limiting exposure to fair value losses arising from rising interest rates, the Police Supplemental Pension
Plan investment policy limits the duration of the fixed income portfolio to 125% of the duration of the Barclays Capital
Aggregate Bond index. Additionally, no issues, Treasury, or Corporate Bonds may be purchased with maturities in excess
of 15 years.
Credit Risk — Police Supplemental Pension Plan:
The Police Supplemental Pension Plan investment policy limits credit risk by restricting equity investments to corporations
that are listed on one of the national or international stock exchanges. Additionally, fixed income security investments are
limited to "A" rated or higher corporate bonds, debentures, and preferred stocks; corporate debt provided the corporation
meets the standards set forth in section 185.06(1)(b), Florida Statutes; and U.S. Government and agency obligations.
Finally, the investment policy requires that investment managers dispose of any issue that has been downgraded below "A"
as soon as is economically feasible.
Concentration of Credit Risk — Police Supplemental Pension Plan:
The Police Supplemental Pension Plan investment policy limits concentration of credit risk by limiting the investment in
common stock or capital stock of any one issuing company to 5% of the outstanding capital stock of the company.
Additionally, the policy limits any one - industry position to no more than 25% of the equity portfolio.
Foreign Currency Risk — Police Supplemental Pension Plan:
Risk of loss arises from changes in currency exchange rates. The Police Supplemental Pension Plan investment policy
does not have a formal policy to limit foreign currency risk, other than a guideline of no more than 20% of the plan assets
invested in international equities. Investment in fixed income foreign investments is not permitted per the investment policy.
The Plan has no current exposure to foreign currency risk.
Firefighters Supplemental Pension Plan
At year -end, the Firefighters Supplemental Pension Plan cash and investment balances were as follows:
52
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
Cash and cash equivalents:
Cash in managed investment accounts
Total cash and cash equivalents
Investments:
Treasuries
Domestic corporate bonds
Domestic corporate bonds
Domestic corporate bonds
Domestic corporate bonds
Domestic stocks
Mortgage /Asset backed bonds
Domestic equity mutual funds
International equity mutual funds
Total investments
Total managed cash and investments
Carrying % of Weighted avg Moody's
Amount Portfolio maturity (years) Rating
$ 238,308 2.4% n/a n/a
238,308
1,242,173 12.8%
217,473 2.2%
1,616,733 16.6%
445,098 4.6%
478,413 4.9%
1,502,921 15.5%
625,697 6.4%
2,689,984 27.7%
668,178 6.9%
9,486,670
$ 9,724,978 100.0%
3.90
2.71
n/a
21.63
n/a
n/a
Aaa
Aaa
Aa 1 /Aa2 /Aa3
Al /A2 /A3
Baa 1/Baa2/Baa 3
n/a
n/a
n/a
n/a
Interest Rate Risk — Firefighters Supplemental Pension Plan:
As a means of limiting exposure to fair value losses arising from rising interest rates, the Firefighters Supplemental
Pension Plan investment policy limits the duration of the fixed income portfolio to 135% of the duration of the Merrill Lynch
Master Bond Index.
Credit Risk — Firefighters Supplemental Pension Plan:
The Firefighters Supplemental Pension Plan investment policy limits credit risk by restricting equity investments to
securities that are fully and easily negotiable. Additionally, investments in corporations whose stock has been publicly
traded for less than one year are limited to 15% of the equity portfolio. An additional investment policy restriction is that
investment in equity securities whose market capitalization is less than $2 billion dollars shall be limited to 25% of the total
equity portfolio. Additionally, fixed income corporate security investments are limited to "Baa" rated (per Moody's) or higher
corporate bonds (investment grade). Finally, collateralized mortgage obligations must be backed by a federal agency (i.e.
GNMA, FHLMC, or FNMA) or rated Aaa by Moody's, and must pass the FFIEC High Risk Security Test on an annual
basis.
Concentration of Credit Risk — Firefighters Supplemental Pension Plan:
The Firefighters Supplemental Pension Plan investment policy limits concentration of credit risk by limiting the investment
in common stock or capital stock of any one issuing company within an investment manager's portfolio to 5% of the
portfolio. Similarly, no more than 10% of a fixed income investment manager's portfolio may be invested in the securities of
any single corporate issuer per the plan investment policy. Finally, investments in collateralized mortgage obligations are
limited to 15% of the investment manager's total portfolio.
Foreign Currency Risk — Firefighters Supplemental Pension Plan:
Risk of loss arises from changes in currency exchange rates. The Firefighters Supplemental Pension Plan investment
policy does not have a formal policy to limit foreign currency risk, other than a guideline of no more than 10% of the plan
assets invested in international equities.
B. Receivables
Receivables as of year -end for the City's governmental, proprietary, internal service, and fiduciary funds, including the
applicable allowances for uncollectible accounts for the proprietary funds, are segregated on the fund financial statements.
The Mortgages, Notes, and Other Loans amount of $14,921,608 reported on the Governmental Funds balance sheet includes
$14,838,813 of long -term loans receivable that are not expected to be collected within the next fiscal year.
53
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
Receivables as of year -end for the primary government's individual major funds, as well as non -major funds and internal
service funds in the aggregate, are as follows:
Receivables. net of applicable allowances for uncollectible accounts (amounts in thousands):
General fund
Special Development
Capital Improvement
Non -major govemmental funds
Internal service funds
Total govemmental
Less: Allowance for uncollectible
Net governmental receivables
Water and Sewer Utility
Gas Utility
Solid Waste Utility
Stormwater Utility
Non -major enterprise funds
Total business -type
Less: Allowance for uncollectible
Net business -type receivables
Taxes
$ 1,812
76
Franchise
Fees
$ 916
1,888
(608)
$ 1,280 $ 916 $ 890 $
Interest Accounts
$ 202 $ 180
233 2
2
151
302
916 890 182
Notes
$ -
15,196
15,196
(274)
182 $ 14,922
Other Total
$ 7 $ 3,117
311
- 2
257 15,604
- 302
264 19,336
(882)
$ 264 $ 18,454
$ $
$ $
C. Capital assets
Capital asset activity for the year ended September 30, 2010:
Beginning
Balance
Governmental Activities:
Non - depreciable capital assets:
Land
Construction in progress
Total non - depreciable capital assets
Depreciable capital assets:
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Total depreciable capital assets
Less accumulated depreciation for:
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Total accumulated depreciation
Net depreciable capital assets
Net governmental activities capital assets
$ 79,291,397
13,509,321
92,800,718
$ 634 $ 5,233 $ $
148 2,386
107 1,650
101 1,991
162 227
1,152 11,487
- (202)
$ 1,152 $ 11,285 $ $
Increases
$ 300,126
6,376,375
6,676,501
113,994,204 5,210,848
24,364,837 3,043,908
71,767,246 4,860,052
133,426,480 3,086,369
343,552,767 16,201,177
(32,051,698)
(10,235,349)
(51,087,321)
(62,266,972)
(155,641,340)
187,911,427
$ 280,712,145
(3,716,100)
(1,144,321)
(6,221,578)
(4,351,679)
(15,433,678)
767,499
$ 7,444,000
54
187 $ 6,054
2,534
1,757
2,092
389
187 12,826
(202)
187 $ 12,624
Transfers /
Decreases Reclassifications
$ - $
9,415,604
9,415,604
(1,000,000)
3,343,559 17,239
3,343,559 (982,761)
(2,698,052) (17,239)
(2,698,052) (17,239)
645,507 (1,000,000)
$ 10,061,111 $ (1,000,000)
Ending
Balance
$ 79,591,523
10,470,092
90,061,615
119,205,052
26,408,745
73,300,978
136,512,849
355,427,624
(35,767,798)
(11,379,670)
(54,628,086)
(66,618,651)
(168,394,205)
187,033,419
$ 277,095,034
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
Business -type activities:
Non - depreciable capital assets:
Land
Construction in progress
Total non - depreciable capital assets
Depreciable capital assets:
Buildings
Improvements other than buildings
Machinery and equipment
Total depreciable capital assets
Less accumulated depreciation for:
Buildings
Improvements other than buildings
Machinery and equipment
Total accumulated depreciation
Net depreciable capital assets
Net business -type activities capital assets
Beginning
Balance
Increases
Transfers /
Decreases Reclassifications
$ 31,312,012 $ - $ 31,331 $
16,848,148 15,866,231 10,443,357
48,160,160 15,866,231 10,474,688
24,998,545 242,149
472,842,834 24,848,899
9,671,825 822,299
507,513,204 25,913,347
(11,689,693)
(175,554,700)
(6,900,333)
(194,144,726)
313,368,478
(902,461)
(15,712,906)
(762,800)
(17,378,167)
8,535,180
$ 361,528,638
$ 24,401,411
836,388
836,388
Ending
Balance
$ 31,280,681
22,271,022
53,551,703
25,240,694
1,000,000 498,691,733
(17,239) 9,640,497
982,761 533,572,924
(670,648) 17,239
(670,648) 17,239
165,740 1,000,000
$ 10,640,428 $ 1,000,000
Depreciation expense was charged to functions / programs of the primary government as follows:
Govemrrental activities:
General government
Public safety
Physical environrrent
Transportation, induding depredation of general infrastructure assets
Economic environment
Culture and recreation
Capital assets held by the governmental internal service funds are charged
to the various functions based on their usage of the assets
Total depreciation expense - governmental activities
Business -type activities:
Water and sewer utility
Gas utility
Solid waste utility
Stomwater utility
Recycling utility
Marine operations
Aviation operations
Parking system operations
Harborview Center operations
Total depreciation expense - govemrrental activities
55
$ 736,353
1,578,290
153,895
4,287,395
22,956
3,902,627
4,752,162
$ 15,433,678
$ 11, 557,402
1,912,622
221,609
2,398,350
159,023
107,025
199,841
300,619
521,676
$ 17,378,167
(12,592,154)
(191,267,606)
(6,975,246)
(210,835,006)
322,737,918
$ 376,289,621
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
Construction commitments
At September 30, 2010, material outstanding construction commitments were as follows:
Project
Reclairred Water Distribution System
Sanitary Sewer Renewal & Replacerrent
Tropic Hills Phase I Drainage Improvements
Traffic Calming
Reverse Osmosis Plant Expansion - Reservoir #2
Wellfields Expansion
Clearwater Harbor Marina boatslips
Reverse Osrrosis Plant Expansion - Reservoir #1
Sanitary Sewer Extensions
Wastewater Treatment Plant Generator Replacerrents
Total Construction Corrrritments
D. Interfund receivables, payables, and transfers
Fund
Water & Sewer Utility enterprise fund
Water & Sewer Utility enterprise fund
Stomwater Utility enterpri se fund
Capital Improvement capital projects fund
Water & Sewer Utility enterprise fund
Water & Sewer Utility enterprise fund
Clearwater Harbor Marina enterprise fund
Water & Sewer Utility enterprise fund
Water & Sewer Utility enterprise fund
Water & Sewer Utility enterprise fund
Construction
Corrrritrrents
Outstanding
$ 4,102,235
2,449,147
1,797,144
1, 717,723
1, 591, 434
1,460,717
873,641
784,879
780,388
761,132
$ 16,318,440
1. Interfund balances
As discussed in Note III -A, individual fund deficits in the consolidated cash pool, if any, have been reclassified as of
September 30, 2010, as interfund loans from the Capital Improvement Fund, which was selected by management for this
purpose. This reclassification results in a corresponding reduction in the cash equity in the Capital Improvement Fund,
offset by an increase in interfund receivables.
The amounts of the reclassified cash pool deficits, if any, as well as other individual fund interfund payable and receivable
balances (current), at September 30, 2010, were as follows:
Fund
Debt Service Fund:
Notes and Mortgages
Capital Project Fund:
Capital Improvement
Enterprise Fund:
Airpark Operations
Internal Service Funds:
Administrative Services
Central Insurance
Due from Other Funds
Deficit in Other
Pooled Cash Receivables
$ $
32,512
111,925
Due to Other Funds
Deficit in Other
Pooled Cash Payables
$ 32,512 $
20,271
91,654
$ 32,512 $ 111,925 $ 32,512 $ 111,925
Individual interfund advances (long -term) at September 30, 2010, follow:
56
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
Advances to Advances from
Fund Other Funds Other Funds
Special Revenue Funds:
Special Programs $ 648,827 $
Community Redevelopment Agency 648,827
Enterprise Funds:
Airpark Operations 81,086
Internal Service Funds:
Administrative Services 549,921
Central Insurance 631,007
$ 1,279,834 $ 1,279,834
Descriptions of long -term interfund loans as of September 30, 2010:
Two interfund loans from the Special Programs special revenue fund to the Community Redevelopment Agency special
revenue fund in the amount of $350,000 and $298,827, respectively, related to the purchase, remediation, and development of
downtown parcels. Both loans are interest -free and are to be repaid upon sale of the developed parcels.
An internal five -year loan from the Central Insurance Fund to the Airpark Operations enterprise fund, for the construction of
a new multi plane hangar, in the amount of $101,357. The loan provides for five annual payments of $20,271 plus interest
at the cash -pool rate, due on September 30 of each year. The loan commenced April 2, 2008, with the first principal
payment due September 30th of the year that construction is completed, currently estimated to be September 30, 2011.
An internal ten -year loan from the Central Insurance Fund to the Administrative Services Fund for the purchase and
installation of fiber optic cable and termination equipment. The loan provides for ten annual payments of $91,654 plus
interest at the cash -pool rate, due on September 30 of each year. The loan commenced September 30, 2003 with the first
annual principal payment due September 30, 2008, the year that the infrastructure project was completed.
2. Interfund transfers
Interfund transfers for the year ended September 30, 2010, consisted of the following:
Transfers to General Fund from:
Special Development Fund $ 4,600,000
Capital Improvements Fund 114,754
Water & Sewer Utility Enterprise Fund 2,851,780
Gas Utility Enterprise Fund 4,298,260
Solid Waste Utility Enterprise Fund 949,630
Stormwater Utility Enterprise Fund 692,090
Nonmajor governmental funds 1,004,830
Nonmajor enterprise funds 827,525
Internal service funds 2,970,000
Total 18,308,869
Transfers to Special Development Fund from:
Capital Improvements Fund 1,339
Total 1,339
Transfers to Capital Improvements Fund from:
General Fund 2,747,537
Special Development Fund 7,418,173
Nonmajor governmental funds 30,000
Total 10,195, 710
57
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
Transfers to Nonmajor governmental funds from:
General Fund 15,640,927
Special Development Fund 1,114,260
Water & Sewer Utility Enterprise Fund 450,000
Gas Utility Enterprise Fund 11,000
Solid Waste Utility Enterprise Fund 80,000
Stormwater Utility Enterprise Fund 26,500
Nonmajor governmental funds 4,546,945
Nonmajor enterprise funds 90,000
Internal service funds 1,922,500
Total 23,882,132
Transfers to Gas Utility Enterprise Fund from:
General Fund 100,000
Total 100,000
Transfers to Stormwater Utility Enterprise Fund from:
Special Development Fund 24,770
Total 24,770
Transfers to Nonmajor enterprise funds from:
General Fund 517,383
Special Development Fund 4,357,663
Total 4,875,046
Transfers to Internal service funds from:
General Fund 89,243
Water & Sewer Utility Enterprise Fund 31,328
Nonmajor governmental funds 40,000
Nonmajor enterprise funds 4,638,449
Total 4,799,020
Transfers to general government long term debt from:
Gas Utility Enterprise Fund
Total
Total interfund transfers
4,612
4,612
$ 62,191,498
Transfers are primarily used to 1) transfer revenues that have been collected in the required fund per state law to the funds
and activities that state law allows for expenditures; 2) transfer of "payment in lieu of taxes" contributions from the utility funds
to the General Fund; 3) transfer funding from governmental funds to debt service and capital improvements funds; and 4)
transfer matching funds from the General Fund to various grant programs. Other non - routine interfund transfers occurring
during the current fiscal year included transfers of $4.6 million from the Special Development Fund and $2.97 million from the
Central Insurance Fund to the General Fund towards the retirement of debt. This total of $7.57 million was then transferred
from the General Fund, along with a $365 thousand contribution from the General Fund, to the Improvement Revenue
Refunding Bonds Debt Service Fund for fiscal 2011 retirement of the Improvement Revenue Refunding Bonds, Series 2001.
Additionally, the General Fund transferred $3.4 million to the Beachwalk Improvement Revenue Bonds Debt Service Fund for
the current year retirement of the Improvement Revenue Bonds, Series 2008. Additional interfund transfers included receipt
by the Special Programs Fund of $1.75 million from the Central Insurance Fund to finance an employee health clinic, and a
total of $2.1 million received by the Special Programs Fund from various funds for funding of current year retirement
incentives. Finally, during fiscal 2010 the Clearwater Harbor Marina Fund returned $4.6 million of prior year boat slips
financing to the Central Insurance Fund due to current year receipt of $4.1 million in available infrastructure sales tax funding
received from the Special Development Fund.
E. Leases
The City purchases various equipment for governmental and business -type activities under lease purchase financing
agreements. The equipment is purchased with cash and subsequently provided as collateral via a "lease purchase" financing
arrangement, typically for a five -year term. Obligations under these lease purchase agreements are recorded at the present
value of their future minimum lease payments as of date of inception. Purchase of the assets is recorded as a cash outflow
and the subsequent receipt of the financing proceeds is recorded as "proceeds from issuance of debt" for Statement of Cash
Flows reporting.
Capitalized equipment subject to lease purchase financing as of September 30, 2010:
58
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
Equipment
Less: Accumulated Depreciation
Total
Governmental
Activities
$ 18,721,514
(8,830,189)
$ 9,891,325
Business -type
Activities
$ 1,266,548
(552,943)
$ 713,605
The future minimum lease payments under capital lease purchase agreements are as follows
Governmental
Year Ending Sept. 30 Activities
2011 $ 3,425,489
2012 2,356,320
2013 1,550,855
2014 905,986
2015 458,626
2016 48,870
Deduction of the amount of imputed interest necessary to
reduce net minimum lease payments to present value
as of September 30, 2010:
Business -type
Activities
$ 241,962
167,017
135,628
90,270
32,227
8,746,146
(467,180)
667,104
(37,144)
$ 8,278,966 $ 629,960
The City also leases personal computers under a three -year operating lease that is cancelable on an annual basis. Lease
payments for fiscal year ended September 30, 2010, totaled $340,614.
F. Long -term debt
1. Revenue Bonds
$11,470,000 Improvement Revenue Refunding Bonds, Series 2001; issued to provide a portion of the
funds necessary to defease the City's Florida Public Service Tax and Bridge Revenue Bonds; serial
bonds due in annual installments of $370,000 due February 1, 2011, to $450,000 due February 1, 2016;
interest at 4.00% to 4.60 %; 5.25% term bonds in the amount of $3,240,000 due February 1, 2022; and
5.00% term bonds in the amount of $2,850,000 due February 1, 2026.
$14,810,000 Spring Training Facility Revenue Bonds, Series 2002; issued to provide a portion of the
costs of the acquisition, construction, rehabilitation, and equipping of a spring training facility to be used by
the Philadelphia Phillies major league baseball team; serial bonds due in annual installments of $550,000
due March 1, 2011, to $295,000 due March 1, 2022, with a maximum principal of $845,000 due March 1,
2021; interest at 3.50% to 5.375 %; 5.375% term bonds in the amount of $1,730,000 due March 1, 2027;
and 5.375% term bonds in the amount of $1,750,000 due March 1, 2031.
Total revenue bonds for governmental activities
$ 8,540,000
11,210,000
19.750.000
$58,680,000 Water and Sewer Revenue Bonds, Series 2002; issued to pay for costs of expansions to
the City's water and sewer system; serial bonds due in annual installments of $1,255,000 due December
1, 2010, to $2,420,000 due December 1, 2024, interest at 4.00% to 5.00 %; 5.00% term bonds in the
amount of $11,050,000 due December 1, 2028; and 5.00% term bonds in the amount of $13,665,000
due December 1, 2032. 51,105,000
$8,410,000 Water and Sewer Revenue Refunding Bonds, Series 2003; issued to advance refund the
City's Water and Sewer Refunding Revenue Bonds, Series 1993; serial bonds due in annual installments
of $195,000 at December 1, 2010, to $260,000 due December 1, 2018, interest at 2.80% to 4.00 %. 2,020,000
59
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
$26,430,000 Water and Sewer Revenue Bonds, Series 2006; issued to pay the costs of the design,
acquisition, construction, or reconstruction of capital improvements to the City's water and sewer system;
serial bonds due in annual installments of $1,410,000 at December 1, 2019, to $2,070,000 due December
1, 2028, interest at 4.25% to 4.50 %; 4.50% term bonds in the amount of $4,410,000 due December 1,
2030; and 4.625% term bonds in the amount of $4,795,000 due December 1, 2032. 26,430,000
$67,715,000 Water and Sewer Revenue Bonds, Series 2009A; issued to pay the costs of the design,
acquisition, construction, or reconstruction of capital improvements to the City's water and sewer system;
serial bonds due in annual installments of $420,000 at December 1, 2019, to $495,000 due December 1,
2023, interest at 4.375% to 5.00 %; 5.125% term bonds in the amount of $5,655,000 due December 1,
2032; and 5.25% term bonds in the amount of $59,780,000 due December 1, 2039. 67,715,000
$41,700,000 Water and Sewer Revenue Refunding Bonds, Series 2009B; issued to advance refund the
City's Water and Sewer Refunding Revenue Bonds, Series 1998; serial bonds due in annual installments
of $3,485,000 at December 1, 2010, to $5,150,000 due December 1, 2018, interest at 5.00 %. 38,460,000
$8,890,000 Gas System Revenue Refunding Bonds, Series 2004; issued to advance refund the City's
Gas System Revenue Bonds, Series 1996A; serial bonds due in annual installments of $185,000 due
September 1, 2011, to $1,575,000 due September 1, 2026, interest at 3.00% to 4.375 %. 7,845,000
$7,195,000 Gas System Revenue Refunding Bonds, Series 2005; issued to partially advance refund the
City's Gas System Revenue Refunding Bonds, Series 1997A and Series 1997B; serial bonds due in
annual installments of $240,000 due September 1, 2011, to $325,000 due September 1, 2025, interest at
3.50% to 4.375 %; and 4.375% term bonds in the amount of $2,400,000 maturing on September 1, 2027. 6,260,000
$3,700,000 Gas System Revenue Refunding Bonds, Series 2007; issued together with other funds of the
City to refund and redeem on December 1, 2007, all of the outstanding principal amount of the City's Gas
System Revenue Bonds, Series 1998; serial bonds due in equal annual installments of $370,000 due
September 1, 2011, through September 1, 2017; interest at 4.00 %. 2,590,000
$24,685,000 Stormwater Revenue Bonds, Series 2002; issued to finance the costs of capital
improvements to the City's stormwater management system; serial bonds due in annual installments of
$535,000 due November 1, 2010, to $965,000 due November 1, 2023, interest at 3.375% to 4.75 %;
and 4.75% term bonds in the amounts of $3,205,000, $5,115,000, and $2,985,000, due November 1,
2026, 2030, and 2032, respectively. 21,385,000
$14,430,000 Stormwater System Revenue Bonds, Series 2004; issued to finance the costs of capital
improvements to the City's stormwater management system; serial bonds due in annual installments of
$360,000 due November 1, 2010, to $865,000 due November 1, 2032, interest at 2.75% to 4.75 %. 12,765,000
$6,925,000 Stormwater System Revenue Refunding Bonds, Series 2005; issued to partially advance
refund the Stormwater Revenue Bonds, Series 1999; serial bonds due in annual installments of
$225,000 due November 1, 2010, to $470,000 due November 1, 2029, interest at 3.125% to 4.50 %. 6.550.000
Total revenue bonds for business -type activities
Total revenue bonds
243,125,000
$ 262,875,000
2. Restrictive covenants and collateral requirements
The Improvement Revenue Refunding Bonds, Series 2001 are limited obligations of the City payable solely from and
secured by a lien upon and a pledge of the Public Service Tax as authorized by Section 166.231, Florida Statutes, as
amended. The pledge of the Public Service Tax does not constitute a lien upon any property of the City. The covenants of
the ordinance authorizing the bonds include, among other things, an obligation of the City to do all things necessary on its
part to continue the levy and collection of the Public Service Tax at the rate permitted by and in compliance with Section
166.231, Florida Statutes, and Article III, Chapter 44, Code of Ordinances of the Issuer, and any successor provision of
law. The Public Service tax is a revenue of the General Fund.
The Spring Training Facility Revenue Bonds are special, limited obligations of the City, payable solely from and secured by
a lien upon and pledge of the (i) payments received by the City from the State of Florida pursuant to Section 212.20,
Florida Statutes (State payments); and (ii) payments received by the City from Pinellas County, Florida pursuant to the
60
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
Interlocal Agreement dated December 1, 2000 (County payments). The pledge of the State Payments and County
Payments does not constitute a lien upon any property of the City. Furthermore, neither the City, Pinellas County, the State
of Florida, nor any political subdivision thereof has pledged its faith or credit or taxing power to the payment of the bonds.
The Water and Sewer Revenue Bonds, Series 2002, Series 2006, and Series 2009A; and the Water and Sewer Refunding
Revenue Bonds, Series 2003 and Series 2009B are limited obligations of the City payable solely from and secured by a
lien upon and pledge of the net revenues of the City's water and sewer system (System). The pledge of the System's net
revenues does not constitute a lien upon any property of the City. The covenants of the ordinances authorizing the bonds
include, among other things, an obligation of the City to fix and maintain such rates, and collect such fees, rentals and
other charges for the services and facilities of the System and revise the same from time to time whenever necessary,
which will provide gross revenues in each fiscal year sufficient to pay the cost of operation and maintenance of the system;
one hundred fifteen percent (115 %) of the bond service requirement becoming due in such fiscal year on the outstanding
bonds; plus one hundred percent (100 %) of all reserve and other payments required to be made pursuant to the
ordinances authorizing the bonds. The City further covenants that such rates, fees, rentals and other charges will not be
reduced so as to render them insufficient to provide gross revenues for such purpose.
The Gas System Revenue Refunding Bonds, Series 2004, Series 2005, and Series 2007 are limited obligations of the City
payable solely from and secured by a lien upon and pledge of the net revenues of the City's gas system (System). The
pledge of the System's net revenues does not constitute a lien upon any property of the City. The covenants of the
ordinances authorizing the bonds include, among other things, an obligation of the City to fix, establish, revise from time to
time whenever necessary, maintain and collect always, such fees, rates, rentals and other charges for the use of the
product, services and facilities of the System which will always provide revenues in each year sufficient to pay, and out of
such funds pay, 100% of the cost of operations and maintenance of the system in such year and all reserve and other
payments provided for in the ordinances authorizing the bonds, along with one hundred twenty five percent (125 %) of the
bond service requirement due in such year on all outstanding bonds.
The Stormwater System Revenue Bonds, Series 2002 and Series 2004; and Stormwater Revenue Refunding Bonds,
Series 2005 are limited obligations of the City payable solely from and secured by a lien upon and pledge of the net
revenues of the City's stormwater management system (System). The pledge of the System's net revenues does not
constitute a lien upon any property of the City. The covenants of the ordinances authorizing the bonds include, among
other things, an obligation of the City to fix, revise from time to time whenever necessary, and maintain and collect always
such fees, rates, rentals and other charges for use of the products, services, and facilities which will always provide net
revenues in each year sufficient to pay one hundred fifteen percent (115 %) of the bond service requirement becoming due
in such fiscal year on the outstanding bonds. The City further covenants that such rates, fees, rentals and other charges
will not be reduced so as to render them insufficient to provide revenues for such purpose. Additionally, the covenants of
each of the above issues includes a "Reserve Requirement" equal to the lesser of: the Maximum Bond Service
Requirement for any given year; 125% of the Average Annual Bond Service Requirement; or the largest amount as shall
not adversely affect the exclusion of interest on the Bonds from gross income for Federal income tax purposes. A Reserve
Fund has been funded for the Series 2002 and Series 2004 Bonds while the Series 2005 Reserve Requirements has been
satisfied with Reserve Fund Surety Bonds.
Annual debt service requirements to maturity for revenue bonds are as follows:
Year Ending
September 30 Principal
2011
2012
2013
2014
2015
2016 -2020
2021 -2025
2026 -2030
2031 -2035
2036 -2040
2041 -2045
Totals
Governmental Activities
$ 920,000
950,000
990,000
1,025,000
1,070,000
6,135,000
5,340,000
2,850,000
470,000
Interest
$ 936,294
901,504
864,423
824,645
781,694
3,063,227
1,524,692
430,881
12,631
Business -type Activities
Principal Interest
$ 6,850,000
7,140,000
7,460,000
7,815,000
8,125,000
41,710,000
35,150,000
42,510,000
41,485,000
44,880,000
$ 11,468,988
11,167,373
10,850,412
10,516,319
10,162, 386
44,896,954
36,590,812
27,168,662
16,892,715
6,137,250
$ 19,750,000 $ 9,339,991 $ 243,125,000 $185,851,871
61
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
3. Pledged revenues
State of Florida and Pinellas County Payments Pledged: The City has pledged future revenues derived from payments
received from the State of Florida pursuant to Section 212.20, Florida Statutes, and payments from Pinellas County,
Florida pursuant to an Interlocal Agreement, together with any investment income earned on the revenues, to repay $14.8
million in Spring Training Facility Revenue bonds issued in September 2002. Proceeds from the bonds providing financing
for a portion of the costs of the acquisition, construction, rehabilitation, and equipping of a spring training facility to be used
by the Philadelphia Phillies major league baseball team. The bonds are payable solely from the State of Florida and
Pinellas County, Florida payments and are payable through March 2031. Annual principal and interest payments on the
bonds are expected to require less than 100 percent of net revenues. The total principal and interest remaining to be paid
on the bonds is $16,647,523. Principal and interest paid for the current year and total revenue received were $1,074,155
and $1,104,545, respectively.
Public Service Tax and Communications Tax Pledged: .The City has pledged future revenues derived from the
collection of Public Service Tax and Communications Tax, to repay $11.7 million in Improvement Revenue Refunding
bonds issued in November 2001. Proceeds from the 2001 bonds provided a portion of the funds necessary to defease the
City's outstanding Florida Public Service Tax and Bridge Revenue Bonds, Series 1985 and Improvement Revenue Bonds,
Series 1995. The bonds are payable solely from the Public Service tax revenue and are payable through February 2026.
Annual principal and interest payments on the bonds are expected to require less than 20 percent of net revenues. The
total principal and interest remaining to be paid on the bonds is $12,422,468. Principal and interest paid for the current year
and total Public Service Tax and Communication Tax revenues were $779,941 and $19,174,816, respectively.
Water and Sewer Utility Net Revenues Pledged: The City has pledged future net revenues of the City of Clearwater,
Florida, Water & Sewer Utility defined as all income or earnings, including any income from the investment of funds,
derived by the City from the operation of the utility after deduction of current expenses for the operation, maintenance and
repair of the system, but not including reserves for renewals and replacements, for extraordinary repairs or any allowance
for depreciation to repay:
$58.7 million in Water & Sewer Revenue bonds issued in July 2002. Proceeds from the bonds provided financing to make
capital improvements and expansions to the City's water and sewer system. The bonds are payable solely from the Water
and Sewer Utility net revenues and are payable through December 2032.
$8.4 million in Water & Sewer Revenue Refunding bonds issued in October 2003. Proceeds from the bonds provided
financing to refund and redeem the City's then outstanding Water and Sewer Revenue Refunding Bonds, Series 1993. The
bonds are payable solely from the Water and Sewer Utility net revenues and are payable through December 2018.
$26.4 million in Water & Sewer Revenue bonds issued in August 2006. Proceeds from the bonds provided financing for the
costs of design, acquisition, construction or reconstruction of capital improvements to the City's water and sewer system.
The bonds are payable solely from the Water and Sewer Utility net revenues and are payable through December 2032.
$67.7 million in Water & Sewer Revenue bonds issued in May 2009. Proceeds from the bonds provided financing for the
costs of design, acquisition, construction or reconstruction of capital improvements to the City's water and sewer system.
The bonds are payable solely from the Water and Sewer Utility net revenues and are payable through December 2039.
$41.7 million in Water and Sewer Revenue Refunding bonds issued in May 2009. Proceeds from the bonds provided
financing to refund and redeem the City's then outstanding Water and Sewer Revenue Refunding Bonds, Series 1998. The
bonds are payable solely from the Water and Sewer Utility net revenues and are payable through December 2018.
Annual principal and interest payments on the bonds are expected to require Tess than 85 percent of net revenues. The
total principal and interest remaining to be paid on the bonds is $340,062,994. Principal and interest paid for the current
year and total net revenue were $13,995,044 and $18,254,693, respectively.
Stormwater Utility Net Revenues Pledged: The City has pledged future net revenues of the City of Clearwater, Florida,
Stormwater Utility defined as all income or earnings, including any income from the investment of funds, derived by the City
from the operation of the utility after deduction of current expenses for the operation, maintenance and repair of the
system, but not including reserves for renewals and replacements, for extraordinary repairs or any allowance for
depreciation to repay:
62
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
$24.7 million in Stormwater Revenue bonds issued in September 2002. Proceeds from the bonds provided financing to
make capital improvements to the City's stormwater management system. The bonds are payable solely from the
Stormwater Utility net revenues and are payable through November 2032.
$14.4 million in Stormwater Revenue bonds issued in September 2004. Proceeds from the bonds provided financing to
make capital improvements to the City's stormwater management system. The bonds are payable solely from the
Stormwater Utility net revenues and are payable through November 2032.
$6.9 million in Stormwater Revenue Refunding bonds issued in May 2005. Proceeds from the bonds provided sufficient
funds to be available on November 1, 2008 to pay and redeem the City's outstanding Stormwater Revenue Bonds, Series
1999. The bonds are payable solely from the Water and Sewer Utility net revenues and are payable through November
2029.
Annual principal and interest payments on the bonds are expected to require Tess than 60 percent of net revenues. The
total principal and interest remaining to be paid on the bonds is $64,997,375. Principal and interest paid for the current year
and total net revenue were $2,862,150 and $7,471,323, respectively.
Gas System Utility Net Revenues Pledged: The City has pledged future net revenues of the City of Clearwater, Florida,
Gas System Utility defined as all income or earnings, including any income from the investment of funds, derived by the
City from the operation of the utility after deduction of current expenses for the operation, maintenance and repair of the
system, but not including reserves for renewals and replacements, for extraordinary repairs or any allowance for
depreciation to repay:
$8.9 million in Gas System Revenue Refunding bonds issued in February 2004. Proceeds from the bonds provided
financing to advance refund the outstanding principal of the City of Clearwater Gas System Revenue Bonds, Series 1996A.
The bonds are payable solely from the Gas System Utility net revenues and are payable through September 2026.
$7.2 million in Gas System Revenue Refunding bonds issued in June 2005. Proceeds from the bonds provided financing to
advance refund the outstanding principal of the City of Clearwater Gas System Revenue Bonds, Series 1997A. The bonds
are payable solely from the Gas System Utility net revenues and are payable through September 2027.
$3.7 million in Gas System Revenue Refunding bonds issued in October 2007. Proceeds from the bonds provided
financing to refund the outstanding principal of the City of Clearwater Gas System Revenue Bonds, Series 1998. The
bonds are payable solely from the Gas System Utility net revenues and are payable through September 2017.
Annual principal and interest payments on the bonds are expected to require Tess than 60 percent of net revenues. The
total principal and interest remaining to be paid on the bonds is $23,916,500. Principal and interest paid for the current year
and total net revenue were $1,479,664 and $9,486,695, respectively.
4. Advance refunding of bonds
In prior fiscal years, the City entered into various advance - refunding transactions related to certain of its bonded debt. A
portion of the proceeds of the refunding bond issues was placed in trust and used to purchase securities of the United States
Government and related agencies at various interest rates and maturities sufficient to meet all debt service requirements of
the refunded debt, of which $6,115,000 was outstanding at September 30, 2010. 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.
The following schedule reflects the outstanding principal on refunded bonds as of September 30:
Business -type Activities:
Stormwater System Revenue Bonds, Series 1999 $ 6,115,000
Total Business -type Activities 6,115,000
Total $ 6,115,000
63
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
5. Changes in long -term liabilities
Governmental activities:
Revenue bonds payable
Add (subtract) deferred amounts:
For issuance premiums (discounts)
On refunding
Net revenue bonds payable
Lease purchase contracts (a)
Compensated absences (b)
Other postemployment benefits (c)
Claims payable (d)
Governmental activity
Long -term liabilities
Business -type activities:
Revenue bonds payable
Less deferred amounts:
For issuance premiums (discounts)
On refunding
Net revenue bonds payable
Lease purchase contracts
Compensated absences (b)
Other postemployment benefits
Unearned revenue
Business -type activity
Long -term liabilities
Beginning
Balance
$ 30,905,000 $
263,952
(236,582)
30,932,370
9,230,007
7,584,136
2,817,553
7,989,000
$ 58,553,066
$ 258,800,000
1,018,865
(4,985,864)
254,833,001
660,218
1,849,411
965,147
187,113
Additions
Ending
Reductions Balance
$ (11,155,000) $ 19,750,000
(26,267) 237,685
22,397 (214,185)
(11,158,870) 19,773,500
2,722,390 (3,673,431) 8,278,966
5,035,218 (5,236,784) 7,382,570
1,970,390 (951,323) 3,836,620
2,060,194 (1,954,194) 8,095,000
Due Within
One Year
$ 920,000
920,000
3,198, 971
4,817, 971
1,988,300
$ 11,788,192 $ (22,974,602) $ 47,366,656 $ 10,925,242
302,009
1,225, 716
728,700
$ (15,675,000) $ 243,125,000 $ 6,850,000
(521,918)
772,736
(15,424,182)
(332,267)
(1,276,118)
(274,967)
496,947
(4,213,128)
239,408,819
629,960
1,799,009
1,418,880
187,113
6,850,000
224,438
1,174,060
$ 258,494,890 $ 2,256,425 $ (17,307,534) $ 243,443,781 $ 8,248,498
(a) , Governmental activities lease purchase contracts additions of $2,722,390 includes $2,722,390 attributable to internal service
funds and $0 attributable to governmental funds. The lease purchase contracts reduction of $3,673,431 includes $3,153,851 for
internal service funds and $519,580 for governmental funds.
(b) Compensated absences are paid by the fund where salaries are incurred, which is primarily the General Fund for
governmental activities.
(c) Other postemployment benefits costs are allocated to and paid by funds based on their percentage of full time
equivalent employees.
(d) The Central Insurance Fund, an internal service fund, accrues for estimated claims and pays claims for all
departments.
G. Restricted assets
1. Water and Sewer Utility Fund
Assets in the Water and Sewer Utility Fund restricted for construction include:
Water Improvement charges, the use of which is restricted by the authorizing ordinance to the
construction of additions to the water system; assets remaining at September 30, 2010, are:
Cash and Investments
$ 1,648,213
Sewer Improvement charges, the use of which is restricted by the authorizing ordinance to the
construction of additions to the sewer system; assets remaining at September 30, 2010, are:
Cash and Investments 5,848,124
64
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
Assets of the Water and Sewer Utility Fund restricted under the provisions of the ordinances authorizing
the issuance of Water and Sewer Revenue Bonds consisted of the following at September 30, 2010:
Water and Sewer Revenue Bonds Debt Service:
Cash and Investments
Water and Sewer Revenue Bonds Renewals and Replacements:
Cash and Investments
Water and Sewer Revenue Bonds Construction:
Cash and Investments
21,178,044
13,667,895
27,310,641
Assets of the Water and Sewer Utility Fund consisting of amounts Due from Other Governments for
advances to the Florida Department of Transportation for utility relocations related to improvements to
State Road 55 (U. S. Highway 19) 3,815,941
Assets of the Water and Sewer Utility Fund representing Customers' Deposits and therefore restricted,
consisting entirely of Cash and Investments at September 30, 2010 2,591,911
Total restricted assets — Water and Sewer Utility Fund $76,060,769
2. Gas Utility Fund
Assets in the Gas Utility Fund restricted under the provisions of the ordinance authorizing the issuance of revenue bonds
consisted of the following at September 30, 2010:
Gas System Revenue Bonds
Debt Service:
Cash and Investments $ 122,754
Renewals and Replacements:
Cash and Investments 300,000
Assets of the Gas Utility Fund representing Customers' Deposits at September 30, 2010:
Cash and Investments 2.325.545
Total restricted assets — Gas Utility Fund $ 2,748.299
3. Solid Waste Utility Fund
Restricted assets in the Solid Waste Utility Fund designated for construction represent customer deposits in the amount of
$945,291 at September 30, 2010, and consisted entirely of Cash and Investments.
4. Stormwater Utility Fund
Assets restricted under the provisions of the ordinances for the issuance of revenue bonds consisted of
the following at September 30, 2010:
Stormwater Revenue Bonds — Series 2002
Debt Service: Cash and Investments $ 2,456,929
Stormwater Revenue Bonds — Series 2004
Debt Service: Cash and Investments 1,459,308
Stormwater Refunding Revenue Bonds — Series 2005
Debt Service: Cash and Investments 315,746
Fees received in lieu of on -site drainage retention for new or improved businesses within the
65
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
Prospect Lake Drainage District, restricted for stormwater improvements, at September 30, 2010:
Cash and Investments
Total restricted assets — Stormwater Utility Fund
Note IV - Other Information
A. Risk management
314.981
$ 4,546,964
The City is self- insured within certain parameters for losses arising from claims for general liability, auto liability, police
professional liability, public official's liability, property damage, and workers' compensation. Insurance coverage has been
maintained by the City to pay for or indemnify the City for losses in excess of certain specific retentions and up to specified
maximum limits in the case of claims for liability, property damage, and workers' compensation. The liability excess
coverage is $7,000,000 per occurrence ($14,000,000 aggregate) with self- insured retention of $500,000. There is workers'
compensation coverage to the statutory limit, with self- insured retention of $500,000. The property damage excess
coverage is $35,000,000 with a $100,000 ($500,000 or 5 %, whichever is greater for named storm) self- insured retention.
Settled claims have not exceeded excess coverage in any of the past three years.
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, 2010, 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 2009 and 2010 were:
Self
Insurance
Balance at October 1, 2008 $ 9,141,187
Current year claims and changes in estimates 1,331,141
Claim payments (2,483,328)
Balance at September 30, 2009 7,989,000
Current year claims and changes in estimates 2,060,194
Claim payments (1,954,194)
Balance at September 30, 2010 $ 8,095,000
B. Statements of cash flows
For purposes of the statements of cash flows, investments with original maturities of three months or less are considered to
meet the definition of cash equivalents. The majority of the investments in which the City's proprietary funds have equity are
held by the City's consolidated pool of cash and investments. Since fund equities in this cash management pool have the
general characteristics of demand deposits in that additional funds may be deposited at any time and also funds may be
withdrawn at any time without prior notice or penalty, each fund's equity account is considered a cash equivalent regardless of
the maturities of investments held by the pool. Funds with deficit (overdraft) positions within the consolidated pool report the
deficits as interfund payables to the City's Capital Improvement Fund.
C. Use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires
management to make estimates and assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from the estimates.
66
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
D. Employee retirement systems and pension plans
1. Defined benefit pension plans
The City contributes to two separate single - employer, self- administered defined benefit pension plans covering approximately
three - fourths of all City employees. The Employees' Pension Plan covers all permanent, full -time City employees who
successfully pass the required physical examination, except for firefighters employed prior to July 1, 1963, and certain
nonclassified (primarily managerial) employees. The Firefighters' Relief and Pension Plan covered eligible firefighters hired
prior to July 1, 1963, and is closed to new entrants. Neither of these plans issues a stand -alone financial report. As indicated,
both plans are self- administered, and the costs of administering the plans are paid from the respective plan assets.
The Employees' Pension Plan is authorized by and operates under the provisions of Sections 2.391 through 2.411 of the
Municipal Code of the City of Clearwater. Plan provisions have been duly approved as required by the voters in referendums.
There were no changes in plan provisions or actuarial assumptions for the current year. The normal retirement benefit is a
monthly benefit equal to 2.75% of average monthly compensation for the highest five of the final ten years of service
multiplied by the number of years of service to date of retirement. The minimum benefit under the plan is $300 per month.
Eligibility for normal retirement occurs upon completion of at least 10 years of service and the attainment of age 65, or
completion of at least 20 years of service and the attainment of age 55, or completion of 30 years of service, for employees
engaged in non - hazardous duty. For those engaged in hazardous duty, eligibility occurs upon completion of 20 years of
service. The normal monthly benefits are payable for the life of the participant and continue, after the participant's death, to be
paid at the same amount for 5 years to eligible surviving beneficiaries; after 5 years, the survivor annuity is reduced to 50% of
the original amount. The plan provides for an annual cost of living increase of up to 1.5 %. The plan also provides for disability
and death benefits, vesting after completion of 10 years of service and the refund of employee contributions in case of a non -
vested termination. There are seven other benefit payment options that are computed to be the actuarial equivalent of the
normal benefit. Covered employees contribute 8% of their compensation. It is the City's obligation to provide a sufficient
additional contribution to maintain the actuarial soundness of the fund but, in any event, not less than 7% of participating
employee's compensation per the ordinance governing the plan.
The Firefighters' Relief and Pension Plan is authorized and operated under the provisions of Subpart B, Article I (Laws
of Florida, Chapter 30658, 1955 and amendments), Sections 1 through 27 of the Municipal Charter and Related Law of the
City of Clearwater and Chapter 26, Article III, Sections 26.50 through 26.52 of the Municipal Code of the City of Clearwater.
There were no changes in plan provisions or actuarial assumptions for the current year. The normal retirement benefit is a
monthly benefit in the amount of 50% of the prevailing wage at the date of retirement of the lowest rank held by the
participant during the three years immediately preceding retirement plus 2% of such prevailing wage for each year of
service in excess of 20 years up to a maximum of 60 %. Participants retiring at the age of 65 years are entitled to a benefit
of 60% of the prevailing wage of the lowest rank held by the participant during the three years immediately preceding
retirement. The ending rate of pay specified above may not exceed the highest rate of pay for the rank of Captain. Eligibility
for normal retirement occurs upon completion of 20 years of service or attainment of age 65. The monthly benefits are
payable for the life of the participant and continue, after the participant's death, to be paid to certain eligible surviving
beneficiaries at an amount that is one -half of the amount received by the participant. Benefits are also provided for
children of the deceased participant who are less than 18 years of age subject to certain limitations as to amount. The plan
also provides for disability and death benefits and for vesting upon completion of at least 12 years of service. The plan
provides for post retirement cost of living increases equal to the increase in the prevailing wage for the rank at which the
participant retired with a limitation for those retiring on or after January 1, 1972, of 100% of the initial pension benefit for
total cost of living increases. Participating employees are required to contribute 6% of their salaries up to the equivalent of
the salary of a fireman holding the rank of Captain. Effective with the fiscal year ended September 30, 2007, the Firefighters'
Relief and Pension Plan, with no remaining active members (only retirees), is fully funded per the requirements of the
governing Ordinance. The City may elect to contribute should future valuations show an actuarial need for such.
As of the most recent actuarial valuation date, January 1, 2010 for both the Employees' Pension Plan and the Firefighters'
Relief and Pension Plan, the membership of the plans was as follows:
67
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
Employees' Firefighter's Relief
Pension Plan and Pension Plan
Retirees and beneficiaries currently receiving benefits 886 39
Terminated employees entitled to benefits but not yet receiving them 69
Active employees 1,567
Total number of participants 2,522 39
For the fiscal year ended September 30, 2010, the covered payroll for the Employees' Pension Fund was $76,216,256. The
City's total payroll for the same period was $87,697,723. Annual pension cost and contributions information for the last three
fiscal years for both the Employees' Pension Plan and the Firefighters' Relief and Pension Plan follows:
Employees' Pension Plan
Year Annual Net
Ended Pension Employer Percent Pension
Sept 30 Cost (a) Contributions Contributed Asset
2008 $ 11,391,880 $ 10,376,234 (b) 91% $ 14,031,276
2009 $ 9,022,632 $ 10,318,483 114% $ 15,327,127
2010 $ 22,799,051 $ 15,886,314 (b) 70% $ 8,414,390
a) The actuarially determined contribution requirements for the City's fiscal year ended September 30, 2010, are based on
actuarial valuations as of January 1, 2009. Since the City's contributions are made during its fiscal year (which
commences nine months after the date of the actuarial valuation), the City, with approval of State regulatory authorities, is
following the practice of adding interest to its required contributions at the assumed rate of return on investments for a
period of one year.
(b) The employer contribution is less than the annual pension cost due to a "drawdown" of the net pension asset. The net
pension asset is the result of legally required contributions in excess of actuarially required contributions in prior years.
Firefighters' Relief and Pension Plan
Year Annual
Ended Pension Employer Percent
Sept 30 Cost Contributions Contributed
2008 (a) $ - $
2009 $ $
2010 $ $
a) Effective with the fiscal year ended September 30, 2007, the Firefighters' Relief and Pension Plan, with no remaining
active members (only retirees), was fully funded per the requirements of the governing Ordinance. The City may elect to
contribute should future biennial valuations show an actuarial need for such.
The Employees' Pension Plan net pension asset at September 30, 2010, totaled $8,414,390. It was comprised of the
following components:
Annual required contributions (ARC) $ 22,150,490
Interest on the net pension asset (1,149,535)
Adjustment to annual contribution 1,798,096
Annual pension cost 22,799,051
Fiscal 2010 employer contributions 15,886,314
Decrease in net pension asset (6,912,737)
Net pension asset beginning of year 15,327,127
Net pension asset end of year $ 8,414,390
68
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
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 $5,798,285 of the
current net pension asset balance is attributable to governmental funds and therefore is not reflected in the governmental
fund financial statements in accordance with the modified accrual basis of accounting. The remaining $2,616,105
attributable to proprietary funds is reflected in the proprietary fund financial statements on the accrual basis of accounting.
Each pension fund is accounted for as a pension trust fund; therefore each is accounted for in substantially the same manner
as proprietary funds with a "capital maintenance" measurement focus and the accrual basis of accounting. Fund assets,
primarily investments, are valued at fair value for balance sheet purposes, in accordance with GASB No. 25. Investment
values are determined using the estimated fair value determined by averaging estimated fair values obtained from three or
more nationally recognized brokers.
As of September 30, 2010, neither the Employees' Pension Plan nor the Firefighters' Relief and Pension Plan held
investments (other than U.S. Government or U.S. Government guaranteed obligations) in any one organization comprising
5% or more of the net assets available for benefits.
Significant actuarial assumptions utilized in the actuarial valuations as of January 1, 2010, the most recent actuarial
valuation date, are as follows:
Employees' Pension Plan
(1) Assumed rate of return on investments of 7.5 %.
(2) Projected salary increase at a rate of 6% per year, including both cost -of- living adjustments of 3% and merit or
seniority increases at 3 %.
(3) Mortality based on the RP 2000 Combined Healthy Mortality Table.
(4) Pre - retirement withdrawals assumed to occur in accordance with a table of declining withdrawal rates for
hazardous and non - hazardous duty categories.
(5) Pre - retirement incidence of disability is assumed to occur in accordance with a standard scale of moderate
disability rates (Class 1, 1952 Inter - Company); rates for females assumed to be twice that for males.
Firefighters' Relief and Pension Plan
(1) Assumed rate of return on investments of 4.5 %.
(2) Assumed benefits grow at an annually compounded rate of 2 %. There are no longer any active members in this
plan.
(3) Mortality based on the 1994 Unisex Mortality Table for retired participants; assumed disabled participants will
experience mortality according to PBGC Tables 3 and 4 for males and females, respectively.
(4) Assumed no withdrawals will occur.
(5) Assumed probability of an active participant becoming disabled is zero (no active participants).
(6) Assumed value of one mill of ad valorem tax will increase at rate of 5% per year.
It is the City's policy to fund pension costs accrued as determined on an actuarial basis. Annual required contributions
(ARC) for the Employees' Pension Plan are calculated using the Entry Age Normal with Frozen Initial Liability method. The
initial unfunded actuarial accrued liability determined at July 1, 1963, was amortized over a 40 -year period; changes made
in 1979 and subsequent years, which have had the effect of either increasing or decreasing the actuarial liability, are being
amortized over a 30 -year period from their effective dates in accordance with State law. The amortization method is level
dollar closed.
Annual required contributions (ARC) for the Firefighters' Relief and Pension Fund are based on a variation of the
aggregate actuarial cost method, under which the unfunded portion of the present value of the projected benefits is
allocated over the present value of a 6.0% per year increasing annuity for the remaining years in the 35 -year funding
period which began January 1, 1972, pursuant to an agreement between the City and the Plan participants. For this
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
69
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
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. Since the plan currently has only inactive members, the funding method could be presently be described as
either aggregate or entry -age normal, both of which normally converge after the end of the active participant phase. Under
the non - standard cost method used for funding of this plan, all liabilities are unfunded actuarial liabilities and are being
amortized according to the closed cost method. This method does not identify or separately amortize unfunded actuarial
accrued liabilities, consequently information about funded status and funding progress is presented using the entry age
actuarial cost method. This information is intended to serve as a surrogate for the funded status and the funding progress
of the plan.
As of January 1, 2010, the most recent actuarial valuation date, the Employees' Pension Plan was 96.9 percent funded.
The actuarial accrued liability for benefits was $638.1 million, and the actuarial value of assets was $618.4 million, resulting
in an unfunded actuarial accrued liability (UAAL) of $19.7 million. The covered payroll (annual payroll of active employees
covered by the plan) was $80.4 million, and the ratio of the UAAL to the covered payroll was 24.4 percent.
As of January 1, 2010, the most recent actuarial valuation date, the Firefighters' Relief and Pension Plan was 104.7
percent funded. The actuarial accrued liability for benefits was $6.8 million, and the actuarial value of assets was $7.1
million, resulting in $317 thousand of funding in excess of the actuarial accrued liability. The covered payroll was $ -0- with
no active employees covered.
The Schedules of Funding Progress, presented as required supplementary information following the notes to the financial
statements, present multiyear trend information regarding the change in the actuarial value of plan assets versus the
actuarial accrued liabilities for benefits over time. Also included as required supplementary information following the notes
to the financial statement, per Governmental Accounting Standards Board Statement Nos. 25 and 27, are the Schedules of
Employer Contributions, which provide similar multiyear trend information on required employer contributions versus the
actual amount contributed.
2. Police Supplemental Pension Fund
A supplemental defined contribution pension plan exists for all eligible policemen, which is funded by earmarked revenues
received from the State and is administered by the Board of the Police Supplemental Pension Plan. The revenues received
from the State are allocated among eligible police officers on the basis of days employed as Clearwater Police Officers.
These revenues received from the State of Florida "on- behalf' of the City's employees, which comprise the plan
contributions, totaled $853,994 for the year ended September 30, 2010, and are obtained from an eighty -five one
hundredths of one percent (0.85 %) excise tax on the gross receipts from premiums collected on casualty insurance
policies covering property within the City's corporate limits. These monies were recognized as General Fund revenues and
General Fund police department expenditures in the current year. The current year contributions represent 4.4% of current
year covered payroll. The fair value of cash and investments at September 30, 2010, totaled $14,197,498.
The Police Supplemental Pension Fund is authorized by and operates under the provisions of Sections 2.471 through 2.480
of the Municipal Code of the City of Clearwater and Chapter 185 of Florida Statutes. Under the plan provisions, the total
monies received during each fiscal year, after payment or provision for all costs and expenses of management and operation
of the plan, are allocated to participants on the basis of the total number of shares to which each participant is entitled. Each
participant is entitled to one share in the fund for each day of service as a police officer of the City.
All police officers, as defined in Section 26.70(g) of the Code of Ordinances of the City of Clearwater, who are elected,
appointed, or employed full -time by the City are eligible to participate in the plan. There are no employee contributions to
the supplemental plan. Benefits are fully vested for a lump sum distribution after twenty years from the date of hire, with
provision for partial vesting after ten or more years under the plan. Accumulated benefits are payable in full in case of
death while employed by the City or in case of total and permanent job - related disability. Non - vested participants' account
values upon termination of employment during any fiscal year are added to the monies received during that fiscal year for
allocation to the remaining participants in the plan on the basis of total days worked.
70
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
Plan assets, primarily investments, are valued at fair value for balance sheet purposes, in accordance with GASB No. 25.
Investment values are determined using the estimated fair value determined by averaging estimated fair values obtained
from three or more nationally recognized brokers.
For the fiscal year ended September 30, 2010, the payroll of the covered officers' was $19,444,259; the City's total payroll for
the same period was $87,697,723.
Since the entitlement to benefits is based entirely upon the allocation of monies received by the plan to the participants' share
accounts, there is no actuarial liability on the part of either the State or the City.
3. Firefighters Supplemental Pension Fund
A supplemental defined contribution pension plan exists for all eligible firefighters, which is funded by earmarked revenues
received from the State and is administered by the Board of the Clearwater Firefighters Supplemental Pension Plan. The
revenues received from the State are allocated among eligible firefighters on the basis of days worked during the previous
year. These revenues received from the State of Florida "on- behalf" of the City's employees, which comprise the plan
contributions, amounted to $1,191,516 in the year ended September 30, 2010, and are obtained from a one and eighty -five
one hundredths percent (1.85 %) excise tax on the gross receipts from premiums collected on property insurance policies
covering property within the City's corporate limits. These monies were recognized as General Fund revenues and General
Fund fire department expenditures in the current year. The contributions represent 9.0% of current year covered payroll. The
fair value of cash and investments at September 30, 2010, totaled $9,724,978.
As the plan is described as a money purchase pension plan, whereby contributions are allocated based on the number of
days worked during the fiscal year ended September 30, and interest earnings allocated based on the beginning balances
in each participant's account, there is no actuarial liability on the part of the State or the City.
The Firefighters Supplemental Pension Fund is authorized by and operates under the provisions of Sections 2.441 through
2.450 of the Municipal Code of the City of Clearwater and Chapter 175 of Florida Statutes. Eligibility requires two years of
credited calendar year service as a firefighter with concurrent participation in the Employees' Pension Plan. There is no
employee contribution to the supplemental plan, and benefits are vested for a lump sum distribution at ten years unless
there is early retirement, disability or death. Non - vested participants' account values upon termination of employment are
reallocated among the remaining participants on the basis of days worked during the previous year.
Plan assets, primarily investments, are valued at fair value for balance sheet purposes, in accordance with GASB No. 25.
Investment values are determined using the estimated fair value determined by averaging estimated fair values obtained
from three or more nationally recognized brokers.
For the fiscal year ended September 30, 2010, the covered payroll was $13,196,974; the City's total payroll for the same
period was $87,697,723.
4. Pension Plan Financial Statements
Separate financial statements are provided in the Notes per the guidance of GASB Statement No. 34 as follows:
71
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
Statement of Fiduciary Net Assets:
ASSETS
Cash and investments
Managed investment accounts, at fair value:
Cash and cash equivalents
Government bonds
Agency bonds
Domestic corporate bonds
International equity securities
Domestic stocks
Mortgage backed bonds
Commodity exchange - traded funds
Domestic equity mutual funds
International equity mutual fund
Total managed investment accounts
Securities lending collateral
Receivables:
Interest and dividends
Unsettled investment sales
Securities lending eamings
Due from others
Total receivables
Total assets
LIABILITIES
Accounts payable
Unsettled investment purchases
Obligations under securities lending
Total liabilities
NET ASSETS
Net assets held in trust for pension benefits
Defined Benefit Defined Contribution
Pension Trust Funds Pension Trust Funds
Police Firefighters
Employees' Firefighters' Supplemental Supplemental
$ 2,147,576 $ 3,521,390 $ 14,316 $
44,269,308 196,412 238,308
20,806,611 2,931,414 1,242,173
16,487,284 3,338,315 630,344
68,164,247 1,139,437 2,757,717
77,868,022 3,067,503
246,319,113 6,178,276 1,502,921
72,356,017 39,796 625,697
818,343
38,754,649 2,689,984
28,791,544 668,178
614,635,138 3,338,315 14,183,182 9,724,978
119,758,961
1,903,605 51,957 51,306 53,888
35,351,583
34,219
104,222 165,534
37,393,629 51,957 51,306
773,935,304 6,911,662 14,248,804
715,088
39,630,890
119,758,961
160,104,939
219,422
9,944,400
$ 613,830,365 $ 6,911,662 $ 14,248,804 $ 9,944,400
72
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
Statement of Changes in Fiduciary Net Assets:
Defined Benefit Defined Contribution
Pension Trust Funds Pension Trust Funds
Police Firefighters
Employees' Firefighters' Supplemental Supplemental
ADDITIONS
Contributions:
Contributions from employer $ 15,594,733 $ $ - $
Contributions from employer - state tax 12,000 853,994 1,191,516
Contributions from employees 6,071,578
Total contributions 21,678,311 853,994 1,191,516
Investment income (loss):
Net appreciation in
fair value of investments
Interest
Dividends
Less investment expenses:
Investment management / custodian fees
Net income from investing activities
Securities lending income:
Gross earnings
Rebate paid
Bank fees
Net income from securities lending
Total additions (losses)
DEDUCTIONS
Benefits and withdrawal payments:
Benefits
Withdrawal payments
Total benefits and withdrawal payments
Income (loss) before administrative expenses
Administrative expenses
Net increase (decrease)
Net assets held in trust for pension benefits:
Beginning of year
End of year
68,138,734 14,522 813,924 484,262
8,240,876 380,452 201,664 187,492
5,351,612 199,316 43,385
81,731,222 394,974 1,214,904 715,139
3,404,794 76,970 81,426
78,326,428 394,974 1,137,934 633,713
451,562
(43,671)
(142,598)
265,293
100,270,032 394,974 1,991,928 1,825,229
26,656,884
725,713
27,382,597
72,887,435
174,564
72,712,871
541,117,494
$ 613,830,365 $
778,817 1,269,190 539,862
778,817 1,269,190 539,862
(383,843) 722,738 1,285,367
4,306 13,864 13,142
(388,149) 708,874 1,272,225
7,299,811 13,539,930 8,672,175
6,911,662 $ 14,248,804 $ 9,944,400
5. 401(a) defined contribution plan
For all management employees not covered under either of the defined benefit pension plans, the City provides pension
benefits through a 401(a) defined contribution plan. In a defined contribution plan, benefits depend solely on amounts
contributed to the plan plus investment earnings. Employees are participants from the date of employment and are fully
vested upon enrollment. The plan is totally contributory on the part of the City in an amount equal to 15% of compensation
on behalf of the City Manager and the City Attorney; 14% of compensation on behalf of the Chief of Police; and 8% of
compensation on behalf of all other management contract employees and Assistant City Attorneys. The City makes bi-
weekly contributions to the Trust throughout the plan year to meet its funding obligations under the plan. Plan provisions
and contribution requirements are established and may be amended by the City Council.
The International City Management Association Retirement Corporation (ICMA -RC), the trustee for the defined annuity,
offers participants a variety of investment options.
73
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
The City's total payroll for the fiscal year ended September 30, 2010 was $87,697,723. The Plan members' payroll for the
same period totaled $5,323,951. The City's contribution, per the above contribution rates, totaled $452,622. The assets,
reported at fair value based on quoted market prices, totaled $4,220,561 at September 30, 2010.
6. Deferred compensation plan
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457.
The plan, available to all City employees, permits them to defer a portion of their salary until future years. Participation in the
plan is optional. The deferred compensation is not available to employees until termination, retirement, death, or
unforeseeable emergency.
Effective January 1, 1997, Federal legislation converted the Section 457 deferred compensation assets from City assets to
employee assets. As a result of these changes, plan assets are no longer subject to the claims of the City's general creditors.
Consequently, these assets are no longer reported in the accompanying financial statements, in compliance with
Governmental Accounting Standards Board Statement No. 32.
E. Post - employment Benefits Other Than Pension
Plan Description - The City of Clearwater administers a single - employer defined benefit healthcare plan (the "Plan ") that
provides medical insurance benefits to its employees and their eligible dependents. In accordance with Section 112.0801
of the Florida Statutes, because the City provides a medical plan to active employees of the City and their eligible
dependents, the City is also required to provide retirees with the opportunity to participate in this Plan. Benefit provisions
for the Plan are established by the City Council and may be amended by the City Council. The retirees pay the full group
premium amount for health insurance with no explicit subsidy from the City. Additionally the City provides and pays for
$1,000 of term life insurance for retirees. The term life insurance benefit provision is also established, and may be
amended, by action of the City Council. The City does not issue stand -alone financial statements for these programs.
Funding Policy — Contribution rates for the Plan are established on an annual basis by the City Council. Eligible retirees
and their covered dependents receiving benefits contribute 100% of their premium costs for health insurance and 0% of the
cost for the $1,000 term life insurance. For the year ended September 30, 2010, the estimated total retiree contributions for
health insurance premiums were $1,327,893. While the City does not directly contribute towards the costs of retiree
premiums via an explicit subsidy, the ability of retirees to obtain health insurance coverage at a group rate which includes
active employees, constitutes a significant economic benefit to retirees, or an "implicit" subsidy. This implicit subsidy is
considered an "other post - employment benefit" (OPEB) obligation of the City. The City is currently funding this OPEB
obligation on a pay -as- you -go basis. For the year ended September 30, 2010, the City estimated it subsidized $1,200,917
of health care costs for retirees and their covered dependents, and $25,373 of life insurance benefits for retirees.
Annual OPEB Cost and Net OPEB Obligation — The City's annual OPEB cost (expense) is calculated based on the annual
required contribution of the employer (ARC), an amount actuarially determined in accordance with parameters of GASB
Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost
each year and to amortize unfunded liabilities of the plan over a period not to exceed thirty years.
The following table shows the components of the City's annual OPEB cost for the year, the amount actually contributed to
the plan, and changes in the City's net OPEB obligation to the Plan, including both the implicit rate subsidy for health
insurance and the term life insurance benefit:
74
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
Annual required contribution $ 2,676,849
Interest on net OPEB obligation 162,656
Adjustment to annual required contribution (140,415)
Annual OPEB cost (expense) 2,699,090
Contributions made (1,226,290)
Increase in net OPEB obligation 1,472,800
Net OPEB obligation - beginning of year 3,782,700
Net OPEB obligation - end of year $ 5,255,500
The actuarially determined contribution requirements for the City's fiscal year ended September 30, 2010, are based on an
actuarial valuation as of January 1, 2010.
No trust or agency fund has been established for the plan and there were no adjustments to the annual required
contribution or interest earnings.
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation
(asset) for the fiscal year ending September 30, 2010, are presented below. Data is only presented for three fiscal years
due to the implementation of GASB Statement 45 and the related disclosure effective with the fiscal year ended September
30, 2008.
Percentage of
Fiscal Year Annual Annual OPEB Net OPEB
Ended OPEB Cost Costs Contributed Obligation
9/30/2008 $ 2,415,000 25.6 % $ 1,796,100
9/30/2009 $ 2,629,200 24.4 % $ 3,782,700
9/30/2010 $ 2,699,090 45.4 % $ 5,255,500
As of September 30, 2010, the accrued liability for benefits was $32,823,521, all of which was unfunded. The covered
payroll (annual payroll of active employees covered by the plan) was $81.0 million and the ratio of the unfunded actuarial
liability (UAL) to covered payroll was 40.5 %.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the
employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical
pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and
assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued
liabilities and the actuarial value of assets, consistent with the long -term perspective of the calculations. Actuarial
valuations for other post - employment benefits involve estimates of the value of reported amounts and assumptions about
the probability of events far into the future, and consequently actuarially determined amounts are subject to continual
revision as results are compared to past expectations and new estimates are made about the future.
For the September 30, 2010 actuarial valuation, the entry age normal actuarial cost method was used, with an increasing
normal cost pattern consistent with the salary increase assumptions. The annual required contribution (ARC) reflects a 28-
year, closed level percent of expected payroll amortization method. The actuarial assumptions included a 4.3% investment
rate of return and 4.0% projected salary increases. Annual medical costs are assumed to increase 9.00% in the first year of
valuation, with future annual increases assumed to grade uniformly to 5% over an eight year period and remain at 5%
thereafter.
The actuarial valuation of the Plan as of January 1, 2010, reflected changes in actuarial methods as follows: the actuarial
cost method was changed from the unit credit, level dollar method to the entry age, normal method; and the amortization
method was changed from 30 years, level dollar open amortization, to 28 -year closed level percent of expected payroll.
Both of these changes resulted from a change in the actuary for the Plan. The January 1, 2010 actuarial valuation also
included a change in the assumption for investment rate of return from 4.0% to 4.3 %.
75
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
F. Securities lending transactions
The City of Clearwater Employees' Pension Plan participates in securities lending transactions, as authorized by the Pension
Trustees on April 14, 2003, via a Securities Lending Authorization Agreement with Northern Trust Company, who is also the
pension plan's custodian. Securities are loaned versus collateral that may include cash, U.S government securities, and
irrevocable letters of credit. U.S. government securities are loaned versus collateral at 102% of the market value of the
securities plus any accrued interest. Non -U.S. securities are loaned versus collateral at 105% of the market value plus any
accrued interest. The Plan's investment policy places no restrictions on the amount of securities that can be loaned.
Non -cash collateral cannot be pledged or sold unless the borrower defaults. All securities loans can be terminated on demand
by either the lender or the borrower. The average term for the pension plans loans at September 30, 2010 was 30 days. If a
borrower fails to return the loaned security because of bankruptcy, insolvency, reorganization, liquidations, receivership,
conservatorship, or a similar event, Northern Trust Company shall, at its expense, credit the City with the difference between
the market value of such loaned security and the market value of the related collateral. At September 30, 2010, there was no
failure by a borrower to return a loaned security.
Cash "open" collateral is invested in a short-term investment pool, the Core USA Collateral Section, which had an average
weighted maturity of 30 days as of September 30, 2010. Cash collateral may also be invested separately in "term loans" in
which investments match the loan term. These term loans may be terminated on demand by either the lender or the borrower.
There were no significant violations of legal or contractual provisions, nor any borrower or lending agent defaults known to the
securities lending agent. The Plan did not impose any restrictions on the amount of loans made by Northern Trust during
fiscal year 2010.
Northern Trust has indemnified the Plan for losses attributable to violations by the entity of the Standard of Care set out in the
Agreement. Northern Trust has also indemnified the Plan for all losses as a result of borrower default and for any losses
resulting from related collateral insufficiency. At year -end the Plan has no credit risk exposure to borrowers because the
amounts the Plan owes the borrowers equal or exceed the amounts the borrowers owe the Plan and the lending agent
indemnifies the Plan if the collateral is inadequate to repay the borrowers.
The following is a summary of securities on loan and their collateral:
Securities Collateralized by Cash Securities Collateralized by Non -Cash
Security Type Fair Value Cash Collateral Fair Value Non -Cash Collateral
U.S. Corporate Fixed $ 10,395,860 $ 10,625,682 $ - $ -
U.S. Equity 91,228,614 93,650,705 80,580 82,571
U.S. Govemment Fixed 8,745,143 8,945,373 - -
U.S. Agencies 4,047,382 4,145,449
Global Equities 2,276,579 2,391,752
Total $ 116,693,578 $ 119,758,961 $ 80,580 $ 82,571
On the statement of fiduciary net assets, a securities lending asset of $119,758,961 was reported that represents the fair
value of the investments made with cash collateral at September 30, 2010. In addition, a securities lending obligation of
$119,758,961 was reported that represents the collateral that the City is required to maintain to cover the market value of
the loaned securities. The statement of changes in fiduciary net assets presents the net income associated with the
securities lending transactions of $265,293.
G. Contingencies and commitments
Loan Guarantee - PACT, Inc.
PACT, Inc. is a nonprofit corporation formed in 1978, for the purpose of financing, constructing, and operating a performing
arts center. Per a Guaranty Agreement dated May 18, 2001, the City guaranteed $1,000,0000 on a $5,000,000 mortgage
note for PACT, Inc., used to refinance a previous mortgage with a similar City guarantee. City management does not
consider it probable that this guarantee will be called, and, accordingly, no amounts have yet been accrued or otherwise
recorded in the accompanying financial statements to reflect this possibility.
Loan Guarantee — Chi Chi Rodriquez Youth Foundation, Inc.
On March 30, 1992, the City Council approved a contingent loan guarantee of $1,000,000 on a $2,500,000 note for the Chi
Chi Rodriquez Youth Foundation, Inc. The proceeds of the note were used to refinance existing foundation debt incurred to
construct a golf course on a parcel of City -owned land. Subsequently, the note was refinanced with Variable Rate Demand
Revenue Bonds (Chi Chi Rodriquez Youth Foundation Project), Series 1998, on August 1, 1998. In the event of default, the
76
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
City is obligated to contribute $1,000,000 out of legally available non -ad valorem revenues. In addition, the City has the
option to retire the entire unpaid balance and assume ownership and operation of the golf course facility.
Pollution Remediation Claims Liabilities
During fiscal year 2009, the City implemented GASB Statement 49, Accounting and Financial Reporting for Pollution
Remediation Obligations. This statement requires that the City analyze known polluted sites to determine future
component cost outlays, including estimation where required, for pollution remediation. The effect of adopting GASB
Statement 49 was a $234,839 accrued liability at 9/30/09 for petroleum contamination cleanup at the fuel site at the
Clearwater Airpark, an enterprise fund of the City. Approximately $35,000 remains as a liability at 9/30/10. At 9/30/10, an
additional $133,217 was accrued for initial site assessment and support at a site acquired by the Community
Redevelopment Agency (a Special Revenue Fund). This site was awarded a grant of $200,000 pursuant to the American
Recovery and Reinvestment Act for Brownfields Assessment and Cleanup Revolving Loan Fund Activities. Also accrued
at 9/30/10 was $491,166 in the Gas Utility Enterprise Fund for legal assistance and for a five year project to analyze and
treat contaminated soils at the former manufactured gas plant site (see the Soil and groundwater contamination site note
below).
The City has seventeen other sites that have known contamination from petroleum products, metals, chlorine or coal tar.
Ten of these sites are on the State of Florida Petroleum Clean -up Program. We are unable to determine when any of
these ten sites will be scheduled for cleanup at this time. The remaining seven sites are under monitoring plans or are
awaiting responses from the Florida Department of Environmental Protection (FDEP) on data submitted by the City. Any
additional cleanup costs for these sites cannot be estimated at this time.
Of the eleven sites awaiting a No Further Action Site Rehabilitation Completion Order (NFASRC) from the FDEP at
9/30/09, research determined that ten of these sites had received the NFASRC during FY2010 or prior. The NFASRC for
the remaining site is expected to be received in FY2011. No further costs are anticipated to be incurred for this site.
Soil and groundwater contamination site
The City owns a property, currently used by the City Gas Division as its administrative offices and operating facility, that
has been identified as having soil and groundwater impacts in a June 1990 report prepared by a United States
Environmental Protection Agency contractor. The contamination allegedly resulted from the prior operation of a
manufactured gas plant (MGP) from approximately 1929 to 1960. Following the discovery of the impacts, the Florida
Department of Environmental Protection (FDEP) directed the City to implement measures to delineate the area and vertical
extent of the impacts at the Property, and, if necessary, implement appropriate remedial action. Field activities to delineate
the extent of impacts were performed between 1995 -2003. The results of the final field work are presented in a
Supplemental Assessment Report dated May 2003, in which the City's consultant concluded that field activities to delineate
the extent of soil and groundwater impacts were complete and that a risk assessment should be undertaken to evaluate an
appropriate remedy for the reported impacts.
By letter dated April 19, 2004, FDEP directed the City to install two additional monitoring wells within the source area on
site to delineate the vertical extent of groundwater impacts. The City and FDEP previously discussed the potential harm to
the underlying aquifer that may result from the installation of monitoring wells through a source area and the underlying
clay confining unit during a meeting with FDEP held on November 29, 2003. Based on the advice of its environmental
consultant and other specialists consulted concerning this issue, the City has consistently maintained that the installation of
the additional monitoring wells requested by FDEP will likely provide a pathway for the migration of impacts into the aquifer
underlying the clay confining unit that is otherwise not presently impacted by the former operations of the MGP based on
existing perimeter monitoring well data. The City responded to the FDEP by letter dated April 29, 2004, requesting that
FDEP advise the City whether the directive to install the additional vertical extent wells was deemed by FDEP to be final
agency action that would otherwise be subject to review in an administrative proceeding. The City's April 29, 2004
response included a request for an extension of time to file an administrative proceeding in the event that FDEP deemed
the April 19, 2004 FDEP communication to be final agency action. On January 17, 2008, FDEP issued a letter to the City
stating FDEP was willing to replace the need for additional vertical delineation wells with periodic sampling of the existing
deep wells, so long as they remain unaffected by the contaminants of concern on the site. Prior to the resolution of this
outstanding matter, we are unable to determine, to an acceptable degree of certainty, whether remediation will, in fact, be
required at the Property and, if so, the estimated cost of such remediation.
During fiscal 2005, the Myrtle Avenue Utility and Roadway Widening project began, requiring extensive dewatering during
construction. Consulting, equipment, laboratory, permitting, and labor costs for dewatering in areas where there was
suspected or known contamination from the former MGP plant were charged to the City of Clearwater Gas Division. All
77
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
activities related to the Myrtle Avenue dewatering project were documented in the "Supplemental Site Assessment Report
— North Myrtle Ave. Roadway Corridor" dated March 2007.
In May 2009, FDEP issued a status report on all Manufactured Gas Plant sites in Florida. In the report it referenced the
1/17/08 letter and reaffirmed FDEP's agreement to forego additional on -site vertical delineation if Clearwater continues to
monitor the perimeter wells on the facility. On June 22, 2009, the perimeter monitoring wells were tested and the results
were reported to FDEP. On February 3, 2010, FDEP issued a letter that formally accepted Clearwater Gas System's
Contamination Assessment Report (CAR) and required no further site assessment activities. Furthermore, FDEP is
requiring CGS to re- sample all monitoring wells on the site within 60 days of the 2/3/2010 letter. Clearwater Gas System
will issue a request for proposal (RFP) in order to prepare a Feasibility Study. The Feasibility Study will offer a long -term
corrective action plan for the gas plant site and will be presented to FDEP for approval. Prior to resolution of this
outstanding matter, we are unable to determine to an acceptable level of certainty whether remediation will be required nor
the estimated cost of such remediation.
The City has pursued insurance claims under certain insurance policies covering the Property for the period of time from
June 1961 through July 1986. Prior to fiscal year 2001, approximately $487,500 had been recovered from City insurance
policies to be applied to any required remediation. On September 17, 2001, the City agreed to reduce its claim against
Southern American Insurance Company ( "SAIC "), the sole remaining excess carrier, to an undiscounted value of
$300,000. In December 2007, the liquidator managing the SAIC liquidation made an initial payment to the City in the
amount of $96,000. In September 2008, a second distribution payment of $174,000 was issued to the City. Finally, in
December 2009, we received a payment of $30,000 for a total collection amount of $300,000. In summary, the City has
recovered $787,500 on all of its outstanding insurance claims.
Since 1993, the City has spent a total of $829,209 on the manufactured gas plant assessment activities, which includes
both environmental consultant and outside attorney fees.
Contractual Commitment — Water and Sewer Utility
Under the terms of a 30 -year contract between the City and Pinellas County, which is effective through September 30,
2035, the maximum amount of water available to the City is 15 million gallons per day on an annual average basis with no
minimum quantity purchase requirement. Effective October 1, 2009, the rate, which is set by the Pinellas County Board of
County Commissioners (BOCC), was $3.1844 per 1,000 gallons. The rate effective October 1, 2010 is $3.2960 per 1,000
gallons. The cost of water purchased from the County during fiscal years 2009 and 2010 was $8,312,863 and $8,010,603,
respectively.
Grant Revenues
During the current fiscal year and prior fiscal years, the City received revenues and contributions related to grants from the
Southwest Water Management District, the State of Florida, the federal government, and other grantors. These grants are for
specific purposes and are subject to review and audit by the grantor agencies. Such audits could result in requests for
reimbursement for expenditures disallowed under the terms of the grants. Based upon prior experience, City management
believes such disallowances, if any, will not be significant.
G. Pending litigation
In the normal course of operations the City is a defendant in various legal actions, the ultimate resolution of which is not
expected to have a material effect on the financial statements, other than for amounts that have been reserved and recorded
as liabilities in the Central Insurance Fund.
H. Conduit debt
The City has one issue of conduit debt outstanding as follows:
Description / Purpose
Original Amount Amount
Issue Outstanding Outstanding
Amount at 9/30/09 at 9/30/10
Drew Gardens Refunding Bonds / residential rental facility $ 3,425,000 $ 2,565,000 $ 2,475,000
78
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2010
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.
I. Subsequent Event
On February 1, 2011, the City redeemed all outstanding principal in the amount of $8,540,000 of the Improvement Revenue
Refunding Bonds, Series 2001. $370,000 of principal matured on February 1, 2011. The balance in the amount of $8,170,000
matured after February 1, 2011 per the debt service schedule. The City paid a 1 % call premium in the amount $81,700 on the
bonds maturing after February 1, 2011. The redeemed bonds included serial bonds due in annual installments of $370,000 to
$450,000 from February 1, 2011 thru February 1, 2016, at interest rates from 4.00% to 4.60 %; and term bonds in the amount
of $3,240,000 at 5.25% due February 1, 2022, and $2,850,000 at 5.00% due February 1, 2026.
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Page 1 of 3
City of Clearwater, Florida
Defined Benefit Pension Plans
Required Supplementary Information - Unaudited
Schedules of Funding Proaress:
Actuarial
Valuation
Date
1/1/2005
1/1/2006
1/1/2007
1/1/2008
1/1/2009
1/1/2010
Actuarial
Value of
Assets
(a)
Employees Pension Plan
Actuarial
Accrued Liability
(AAL) - Entry Age
(b)
Unfunded
AAL
(b -a)
Funded
Ratio
(a /b)
$ 510,265,274
$ 525,573,824
$ 559,830,590
$ 610,979,087
$ 536,834,473
$ 618,444,906
$ 549,136,184
$ 563,597,580
$ 582,248,127
$ 632,559,753
$ 557,515,503
$ 638,109,349
$ 38,870,910
$ 38,023,756
$ 22,417,537
$ 21,580,666
$ 20,681,030
$ 19,664,443
93%
93%
96%
97%
96%
97%
Firefighters' Relief and Pension Plan
Actuarial Actuarial Actuarial
Valuation Value of Accrued Liability
Date Assets (AAL) - Entry Age
(a) (b)
Unfunded
AAL
(b -a)
Covered
Payroll *
(c)
Unfunded AAL
as a Percentage
of Covered Payroll
((b -a) /c)
$ 73,836,304
$ 76,010,269
$ 79,385,090
$ 80,371,617
$ 82,104,837
$ 80,443,199
53%
50%
28%
27%
25%
24%
Unfunded AAL
Funded Covered as a Percentage
Ratio Payroll * of Covered Payroll
(a /b) (c) ((b -a) /c)
1/1/2004 $ 6,190,744 $ 9,974,824 $
1/1/2005 $ 6,744,043 $ 8,938,022 $
1/1/2006 $ 7,445,172 $ 8,773,238 $
1/1/2007 $ 8,375,505 $ 8,320,672 $
1/1/2008 ** $ 8,063,338 $ 7,815,729 $
1/1/2010 ** $ 7,069,681 $ 6,752,633 $
3,784,080
2,193,979
1,328,066
(54,833)
(247,609)
(317,048)
62% $ n/a
75% $ n/a
85% $ n/a
101% $ - n/a
103% $ - n/a
105% $ n/a
* Covered payroll is for the calendar year period used for the actuarial valuation.
** Effective 1/1/2008 the fully funded Firefighters' Relief and Pension Plan has opted for biennial actuarial
valuations. Consequently there was no valuation done on 1/1/2009.
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Page 2 of 3
City of Clearwater, Florida
Defined Benefit Pension Plans
Required Supplementary Information - Unaudited
Schedules of Employer Contributions:
Employees' Pension Plan
Year Annual (a)
Ended Required Percent
Sept. 30, Contribution Contributed
2005 $ 5,415,848 95% (b)
2006 $ 11,614,495 64% (b)
2007 $ 13,180,855 78% (b)
2008 $ 10,805,681 96% (b)
2009 $ 8,451,471 122%
2010 $ 22,150,490 72% (b)
(a) The actuarially determined contribution requirements for the City's fiscal year ended September 30, 2010, are
based on actuarial valuations as of January 1, 2008. Since the City's contributions are made during its fiscal year,
which commences nine months after the date of the actuarial valuations, the City, with approval of State regulatory
authorities, is following the practice of adding interest to its required contributions at the assumed rate of return on
investments for a period of one year.
(b) The actual contribution is less than the annual required contribution due to a "drawdown" of the net pension asset.
Firefighters' Relief and Pension Plan
Year Annual
Ended Required Percent
Sept. 30, Contribution Contributed
2005 $ 1,331,045 100%
2006 $ 1,397,390 100%
2007 $ 1,467,259 100%
2008 $ - (a) n/a
2009 $ n/a
2010 $ n/a
(a) Effective with the fiscal year ended September 30, 2007, the Firefighters' Relief and Pension Plan, with no
remaining active members (only retirees), was fully funded per the requirements of the governing Ordinance. The City
may elect to contribute should future valuations show an actuarial need for such.
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Page 3 of 3
City of Clearwater, Florida
Defined Benefit Pension Plans
Required Supplementary Information — Unaudited
Notes To Schedules Of Required Pension Supplementary Information
Annual required contributions for the Employees' Pension Plan are calculated using the Entry Age Normal with Frozen Initial Liability
method. The initial unfunded actuarial accrued liability determined at July 1, 1963 is being amortized over a 40 -year period; changes
made in 1979 and subsequent years which have had the effect of either increasing or decreasing the actuarial liability are being
amortized over a 30 -year period from their effective dates in accordance with State law. The amortization method is level dollar closed.
Annual required contributions for the Firefighters' Relief and Pension Plan are based on the aggregate actuarial cost method, under which
the unfunded portion of the present value of the projected benefits is allocated over the present value of a 6.0% per year increasing
annuity for the remaining years in the 35 -year funding period which begin January 1, 1972, pursuant to an agreement between the City
and the Plan participants. For this purpose, the unfunded actuarial liability is determined after consideration of the available assets at the
valuation date. The increasing fixed schedule produced by this method was established in 1988 and will be modified in the future only to
the extent that a current valuation indicates a higher required cost level, or if the resulting cost level exceeds 60% of a mill in a current
year. The amortization method for the Firemen's Relief and Pension Fund is a non - standard (no active employees) closed cost method.
The actuarially determined contribution requirement for the Employees' Pension Plan for the City's fiscal year ended September 30, 2010,
are based on an actuarial valuation as of January 1, 2009. Since the City's contributions are made during its fiscal year, which
commences nine months after the date of the actuarial valuations, the City, with approval of State regulatory authorities, is following the
practice of adding interest to its required contributions at the assumed rate of return on investments for a period of one year in the case of
the Employees' Pension Plan.
Significant actuarial assumptions utilized in the actuarial valuation as of January 1, 2009, in the determination of the annual required
contribution are as follows:
Employees' Pension Plan
(1) Assumed rate of return on investments of 7.5% per annum.
(2) Projected salary increase at a rate of 6% per year, including cost -of- living adjustments of 3% and merit or seniority increases at 3 %.
(3) Mortality based on the RP 2000 Combined Healthy Mortality Table.
(4) Pre - retirement withdrawals assumed to occur in accordance with a table of declining withdrawal rates based on hazardous versus
non - hazardous duty categories.
(5) Pre - retirement incidence of disability assumed to occur in accordance with a standard scale of moderate disability rates (Class 1,
1952 Inter - Company); rates for females assumed to be twice that for males.
(6) Assumed inflation rate of 3%
Effective with the fiscal year ended September 30, 2007, the Firefighters' Relief and Pension Plan, with no remaining active members
(only retirees), was fully funded per the requirements of the goveming Ordinance. The City is electing to perform actuarial valuations
biennially for the fully funded plan. Significant actuarial assumptions utilized in the actuarial valuation as of January 1, 2008:
Firefighters' Relief and Pension Plan
(1) Assumed rate of retum on investments of 4.5% compounded annually.
(2) Assumed benefits grow at annually compounded rate of 2% related to cost of living adjustments only.
(3) Mortality based on the 1994 Unisex Mortality Table projected to 2010 for participants.
(4) Assumed no withdrawals will occur.
(5) Assumed probability of an active participant becoming disabled is zero (no active participants).
(6) Assumed value of one mill of ad valorem tax will increase at rate of 5% per year.
(7) Assumed inflation rate of 3%
Significant changes affecting the presented 6 -year trend information include:
The actuarial valuation of the Employees' Pension Plan as of January 1, 2007, reflected changes in actuarial assumptions as follows: The
mortality assumption was updated from the 1994 Group Annuity Reserving Table to the RP 2000 Combined Healthy Mortality Table; the
retirement assumption was updated to reflect the City's experience and expected future retirement rates; and the withdrawal assumption
was updated to reflect the City's experience and expected future withdrawal rates. The impact of these changes decreased the unfunded
actuarial accrued liability from $37,113,063 to $22,417,537.
The actuarial valuation of the Firefighters' Relief and Pension Plan as of January 1, 2003, reflected two changes in actuarial
assumptions. The report assumed an investment yield of 4.5% versus the prior valuation assumption of 5.5 %. Also, the mortality
pattern assumption used the 1994 Unisex Morality Table versus the previous 1983 Group Annuity Mortality Table. The impact of
these changes increased the unfunded actuarial accrued liability from $2,648,428 to $4,742,517.
82
City of Clearwater, Florida
I Other Post - Employment Benefits
Required Supplementary Information - Unaudited
Schedule of Employer Contributions:
I Fiscal Annual
Year Required Estimated Percentage
Ending Contributions Contributions (1) Contributed
Page 1 of 1
1 September 30, 2008 (2) $ 2,415,000 $ 618,900 25.6%
September 30, 2009 $ 2,657,200 $ 642,600 24.2%
1
September 30, 2010 $ 2,676,849 $ 1,226,290 45.8%
I (1) Since there is no funding, these are the estimated benefit payments.
(2) Initial year of plan disclosure, no prior data available.
ISchedule of Funding Proaress:
I Actuarial Actuarial Accrued Unfunded AAL
Fiscal Value of Liability (AAL) - Unfunded Funded Covered as a Percentage
Year Assets Projected Unit Credit AAL Ratio Payroll of Covered Payroll
IEnding (a) (b) (b -a) (a /b) (c) ((b -a) /c)
September 30, 2008 (1) $ $ 23,215,500 $ 23,215,500 0% $ 83,088,355 27.9%
I September 30, 2009 $ $ 25,316,800 $ 25,316,800 0% $ 80,380,800 31.5%
September 30, 2010 $ $ 32,823,521 $ 32,823,521 0% $ 80,987,124 40.5%
(1) Initial year of plan disclosure, no prior data available.
' Significant changes affecting the presented trend information include: The actuarial valuation of the OPEB Plan as of January 1, 2010,
for fiscal year ended September 30, 2010, reflected changes in actuarial methods and assumptions as follows: the actuarial cost method was
changed from the unit credit, level dollar method to the entry age, normal method; the amortization method was changed from 30 years, level
dollar open amortization, to 28 -year closed level percent of expected payroll, and the assumption for investment rate of return was changed
from 4.0% to 4.3 %. These changes occurred at the recommendation of the plan's new actuary.
1
1
1 83
Nonmajor Governmental Funds
Special Revenue Funds
Special revenue funds are used to account for specific revenues that are legally restricted to
expenditures for particular purposes.
Special Programs Fund — to account for grants and contributions, the use of which is restricted for certain
programs.
Community Redevelopment Agency Fund — to account for receipt, custody, and expenditure of property
tax increment funds associated with related redevelopment projects.
Local Housing Assistance SHIP Trust Fund — to account for monies allocated to the City under the State
Local Housing Assistance SHIP grant program.
Pinellas County Local Housing Assistance Trust Fund — to account for monies allocated to the City under
the Pinellas County Local Housing Assistance grant program.
85
Debt Service Funds
Debt service funds provide separate accounting records for all debt interest, principal, and reserve
requirements for general government long -term. Debt of proprietary funds is serviced through restricted
accounts maintained within the individual enterprise or internal service fund associated with the debt.
Improvement Revenue Refunding Bonds Debt Service Fund - to account for the advance monthly
accumulation of resources by transfer of public service tax and communications services tax revenues
from the General Fund and the payment of currently maturing installments of principal and interest
during each fiscal year.
Beachwalk Improvement Revenue Bonds Debt Service Fund - to account for the advance monthly
accumulation of resources by transfer of public service tax and communications services tax revenues
from the General Fund and the payment of currently maturing installments of principal and interest
during each fiscal year.
Infrastructure Sales Tax Revenue Bonds Debt Service Fund - to account for the advance monthly
accumulation of resources by transfer of sales tax revenues from the Special Development Special
Revenue Fund and the payment of currently maturing installments of principal and interest during each
fiscal year.
Notes and Mortgages Debt Service Fund - to account for the advance monthly accumulation of
resources by transfer of General Revenues from the General and Special Revenue Funds and the
payment of currently maturing installments of principal and interest on the various note and mortgage
obligations of the governmental funds during each fiscal year.
Spring Training Facility Revenue Bonds Debt Service Fund — to account for the advance monthly
accumulation of resources received from the State of Florida and Pinellas County, and the payment of
currently maturing installments of principal and interest each year.
86
Capital Projects Funds
Capital projects funds are used to account for resources to be used for the acquisition or construction of
major capital improvement projects, other than those financed by proprietary funds. A major capital
improvement project is a property acquisition, a major construction undertaking, or a major improvement
to an existing facility or property, with a cost greater than $25,000 and a minimum useful life of at least
five years.
Community Redevelopment Agency Capital Projects Fund — to provide separate accounting records for
the acquisition or construction of capital improvement projects for the Clearwater Community
Redevelopment Agency.
87
ASSETS
Cash and investments
Receivables:
Accrued interest
Mortgage notes
Rehab advances
Other
Investments
Due from other governments - grants
Land held for resale
Prepaid items
Advances to other funds
Total assets
LIABILITIES
Accounts and contracts payable
Accrued payroll
Due to other governmental entities
Construction escrows
Due to other funds (deficit in pooled cash)
Advances from other funds
Deferred revenue
Total liabilities
FUND BALANCES
Reserved for:
Encumbrances
Interfund and notes receivable
Grant programs
Land held for resale
Debt service:
Current requirements - principal
Current requirements - interest
Future requirements
Unreserved, reported in:
Special revenue funds
Debt service funds
Capital projects funds
Total fund balances
Total liabilities and fund balances
City of Clearwater, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2010
Special Revenue Funds
SHIP
Community Local Housing
Special Redevelopment Assistance
Programs Agency Trust
$ 12,415,815 $
67,742
6,708,626
10,601
174,456
1,141,591
84,701
648,827
$ 21,252,359 $
$ 626,574 $
93,574
26
11,516
731,690
7,357,453
2,999,587
84,701
10,078,928
659,562 $
46,686
31,393
1,914,050
163,441 $
5,569
7,243,282
1,276
39,343
2,651,691 $ 7,452,911 $
1,662 $ 23,236 $
48,000 -
6,671
648,827
31,393
729,882 29,907
7,759
1,914,050
20,520,669 1,921,809
$ 21,252,359 $ 2,651,691 $
The notes to the financial statements are an integral part of this statement.
88
7,243,282
179,722
7,423,004
7,452,911 $
Pinellas County
Local Housing
Assistance
Trust
665,765 $
5,154
969,700
1,640,619 $
745 $
162,227
162,972
969,700
507,947
1,477,647
1,640,619 $
Total
13, 904, 583
125,151
14,921,608
11,877
245,192
1,141,591
1,998,751
648,827
32,997,580
652,217
93,574
48,026
180,414
648,827
31,393
1,654,451
7,759
15,570,435
2,999,587
1,998,751
10, 766, 597
31,343,129
32,997,580
Debt Service Funds
Spring
Improvement Training
Revenue Notes Facility
Refunding and Revenue
Bonds Mortgages Bonds
Total
Capital
Project
Fund Total
Community Nonmajor
Redevelopment Governmental
Agency Funds
$ 7,838,012 $ $ 516,066 $ 8,354,078 $ 6,417,472 $ 28,676,133
23,230 3,028 26,258 151,409
14,921,608
11,877
245,192
888,327 888,327 888,327
1,141,591
1,998,751
32,512 32,512 32,512
648,827
$ 8,749,569 $ 32,512 $ 519,094 $ 9,301,175 $ 6,417,472 $ 48,716,227
$ $ $ $ $ 56,771 $ 708,988
93,574
48,026
180,414
32,512 32,512 32,512
648,827
31,393
32,512 32,512 56,771 1,743,734
7,759
15, 570,435
2,999,587
1,998,751
246,667 320,834 567,501 567,501
69,685 44,601 114,286 114,286
861,000 861,000 861,000
10, 766, 597
7,572,217 153,659 7,725,876 7,725,876
6,360,701 6,360,701
8,749,569 - 519,094 9,268,663 6,360,701 46,972,493
$ 8,749,569 $ 32,512 $ 519,094 $ 9,301,175 $ 6,417,472 $ 48,716,227
89
City of Clearwater, Florida
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2010
Special Revenue Funds
SHIP Pinellas County
Community Local Housing Local Housing
Special Redevelopment Assistance Assistance
Programs Agency Trust Trust
REVENUES
Intergovernmental:
Federal $ 3,070,345 $ $ - $
State 218,333 - 39,370
Local 195,767 1,322,681
Charges for services 1,277,005
Fines and forfeitures 499,498 -
Investment earnings 482,539 258,299 -
Miscellaneous 653,737 67,627 12,107
Total revenues: 6,397,224 1,648,607 51,477
33,901
33,901
Total
$ 3,070,345
257,703
1,518,448
1,277,005
499,498
774,739
733,471
8,131,209
EXPENDITURES
Current:
General government 3,067,827 3,067,827
Public safety 2,425,600 2,425,600
Physical environment 446,748 446,748
Economic environment 775,916 232,549 213,447 68,004 1,289,916
Human services 100,200 100,200
Culture and recreation 1,283,194 1,283,194
Debt service:
Principal -
Interest & fiscal charges 46,297 46,297
Capital outlay 1,088,802 1,088,802
Total expenditures 9,188,287 232,549 259,744 68,004 9,748,584
Excess (deficiency) of revenues
over/ (under) expenditures (2,791,063) 1,416,058 (208,267) (34,103) (1,617,375)
OTHER FINANCING SOURCES (USES)
Transfers in 5,542,236 1,829,005 - 7,371,241
Transfers out (532,831) (3,237,304) (870.530) (210,913) (4,851,578)
Total other financing sources (uses) 5,009,405 (1,408,299) (870,530) (210,913) 2,519,663
Net change in fund balances 2,218,342 7,759 (1,078,797) (245,016) 902,288
Fund balances - beginning 18,302,327 1,914,050 8,501,801 1,722,663 30,440,841
Fund balances - ending $ 20,520,669 $ 1,921,809 $ 7,423,004 $ 1,477,647 $ 31,343,129
The notes to the financial statements are an integral part of this statement.
90
Debt Service Funds Capital
Spring Project
Improvement Beachwalk Infrastructure Training Fund Total
Revenue Improvement Sales Tax Notes Facility Community Nonmajor
Refunding Revenue Revenue and Revenue Redevelopment Governmental
Bonds Bonds Bonds Mortgages Bonds Total Agency Funds
$ $ $ $ $ - $ - $ $ 3,070,345
500,004 500,004 757,707
587,650 587,650 2,106,098
1,277,005
- - 499,498
195,087 848 33,507 16,891 246,333 1,021,072
- 733,471
195,087 848 33,507 1,104,545 1,333,987 9,465,196
651 651 3,068,478
2,425,600
446,748
561,769 1,851,685
100,200
1,283,194
355,000 3,650,000 6,620,000 514,969 530,000 11,669,969 11,669,969
424,941 148,479 132,700 42,281 544,155 1,292,556 1,338,853
- - 963,820 2,052,622
779,941 3,799,130 6,752,700 557,250 1,074,155 12,963,176 1,525,589 24,237,349
(584,854) (3,798,282) (6,719,193) (557,250) 30,390 (11,629,189) (1,525,589) (14,772,153)
8,162,576 3,749,100 1,114,260 557,250 13,583,186 2,927,705 23,882,132
- (770,197) (5,621,775)
8,162,576 3,749,100 1,114,260 557,250 13,583,186 2,157,508 18,260,357
7,577,722 (49,182) (5,604,933) 30,390 1,953,997 631,919 3,488,204
1,171,847 49,182 5,604,933 488,704 7,314,666 5,728,782 43,484,289
$ 8,749,569 $ - $ - $ $ 519,094 $ 9,268,663 $ 6,360,701 $ 46,972,493
91
City of Clearwater, Florida
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual (GAAP Basis)
Community Redevelopment Agency
For the Year Ended September 30, 2010
REVENUES
Intergovernmental - Local
Investment eamings
Miscellaneous
Total revenues
EXPENDITURES
Current - Economic environment
Total expenditures
Excess of revenues over expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Excess of revenues and other sources
over expenditures and other uses
Fund balances - beginning
Fund balances - ending
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
$ 1,352,719 $ 1,322,680 $ 1,322,681 $ 1
30,000 200,000 258,299 58,299
67,627 67,627 67,627
1,450,346 1,590,307 1,648,607 58,300
326,267 323,989 232,549 91,440
326,267 323,989 232,549 91,440
1,124,079 1,266,318 1,416,058 149,740
1,217,557 1,777,832 1,829,005 51,173
(2,341,636) (3,044,150) (3,237,304) (193,154)
(1,124,079) (1,266,318) (1,408,299) (141,981)
7,759 7,759
1,914,050 1,914,050 1,914,050
$ 1,914,050 $ 1,914,050 $ 1,921,809_ $ 7,759
The notes to the financial statements are an integral part of this statement.
93
Nonmajor Enterprise Funds
Enterprise funds are used to account for the financing, acquisition, operation, and maintenance of
governmental facilities that are supported primarily by user charges.
Recycling Utility Fund — to account for the financing, processing, operation and maintenance of the City's
recycling service from charges made to users of the services and funds received from the sale of
recyclable commodities processed to meet market requirements. The service area extends beyond the
City limits
Marine Operations Fund - to account for the financing, operation, and maintenance of the City's marine
operations (excluding the downtown boat slips) and associated real property from rents collected from
users.
Aviation Operations Fund - to account for the financing, operation, and maintenance of the City's airpark
operations from rents collected from users.
Parking System Fund - to account for the financing, construction, operation and maintenance of the
City's parking system, including on- and off - street parking on Clearwater Beach and Downtown
Clearwater, from parking charges.
Harborview Center Fund - to account for the operation of the City's convention center and related
facilities.
Clearwater Harbor Marina Fund - to account for the financing, operation, and maintenance of the City's
downtown boat slips from boat slip rentals.
95
City of Clearwater, Florida
Combining Statement of Net Assets
Nonmajor Enterprise Funds
September 30, 2010
Recycling Marine
Utility Operations
ASSETS
Current assets:
Cash and investments $ 4,489,109 $ 130,905
Accrued interest receivable 27,352 216
Accounts and contracts receivable:
Billed 81,232
Unbilled charges estimated 144,911
226,143
Less: Allowance for uncollectable accounts (2,665)
Total receivables, net 223,478
Due from other governmental entities -
Inventories, at cost - 32,710
Prepaid expenses and other assets 10,313 -
Total current assets 4,750,252 163,831
Noncurrent assets:
Net pension asset 103,588 62,411
Capital assets:
Land and other nondepreciable assets - 670,086
Capital assets, net of accumulated depreciation 622,687 577,553
Total noncurrent assets 726,275 1,310,050
Total assets 5,476,527 1,473,881
LIABILITIES
Current liabilities:
Accounts and contracts payable 18,034 26,369
Accrued payroll 40,124 33,560
Deposits - 19,957
Unearned revenue and liens -
Current portion of long -term liabilities:
Compensated absences 33,369 49,936
Notes, loan pool agreement and acquisition contracts 61,015 -
Advances from other funds
Total current liabilities 152,542 129,822
Noncurrent liabilities:
Compensated absences 17,763 26,581
Other postemployment benefits 66,324 50,873
Notes, loan pool agreement and acquisition contracts 108,701 -
Advances from other funds -
Total non - current liabilities 192,788 77,454
Total liabilities 345,330 207,276
Net assets:
Invested in capital assets, net of related debt 452,971 1,247,639
Unrestricted 4,678,226 18,966
Total net assets $ 5,131,197 $ 1,266,605
The notes to the financial statements are an integral part of this statement.
96
Aviation Parking Harborview Clearwater
Operations System Center Harbor Martina Total
$ 318,353 $ 14,865,653 $ 755,408 $ 432,075 $ 20,991,503
2,051 99,556 3,997 28,820 161,992
433 81,665
144,911
433 226,576
(2,665)
433 223,911
136,456 1,305,162 1,441,618
32,710
10,313
456,860 14,965,209 759,838 1,766,057 22,862,047
2,788 34,446 203,233
1,410,900 992,082 926,000 3,999,068
1,767,050 3,024,354 5,528,532 12,772,467 24,292,643
3,180,738 4,050,882 6,454,532 12,772,467 28,494,944
3,637,598 19,016,091 7,214,370 14,538,524 51,356,991
35,336 20,278 106,646 820,249 1,026,912
2,279 50,154 8,022 134,139
- 1,842 17,500 39,299
1,017 1,017
2,267 57,659 4,428 147,659
61,015
20,271 20,271
60,153 130,950 106,646 850,199 1,430,312
1,206 30,692 2,357 78,599
4,152 94,021 16,660 232,030
108,701
81,086 81,086
86,444 124,713 19,017 500,416
146,597 255,663 106,646 869,216 1,930,728
3,177,950 4,016,436 6,454,532 12,772,467 28,121,995
313,051 14,743,992 653,192 896,841 21,304,268
$ 3,491,001 $ 18,760,428 $ 7,107,724 $ 13,669,308 $ 49,426,263
97
City of Clearwater, Florida
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets
NonmaJor Enterprise Funds
For the Year Ended September 30, 2010
Recycling Marine
Utility Operations
Operating revenues:
Sales to customers $ 1,174,564 $ 2,566,807
Service charges to customers 7,435
User charges to customers 1,513,562 118,974
Rentals 1,265,463
Total operating revenues 2,695,561 3,951,244
Operating expenses:
Personal services 1,178,816 897,718
Purchases for resale 263,983 2,046,010
Operating materials and supplies 84,394 40,675
Transportation 364,768 17,334
Utility service 10,526 208,420
Depreciation 159,023 107,025
Interfund administrative charges 590,790 260,480
Other current charges:
Professional fees 3,716 29,986
Advertising 12,508 11,756
Communications 7,200 19,856
Printing and binding 755
Insurance 29,870 33,020
Repairs and maintenance 10,700 72,311
Rentals 1,560
Miscellaneous 10,902 95,946
Data processing charges 37,220 32,010
Taxes 3,615
Total other current charges 112,871 300,060
Total operating expenses 2,765,171 3,877,722
Operating income (loss) (69,610) 73,522
Nonoperating revenues (expenses):
Investment earnings 147,891 1,851
Interest expense (7,036)
Amortization of bond issue costs
Gain on exchange of capital assets
Loss on exchange of capital assets
Other 83,121 113,107
Total nonoperating revenue (expenses) 223,976 114,958
Income (loss) before contributions and transfers 154,366 188,480
Capital grants and contributions
Transfers in
Transfers out (237,570) (255,180)
Changes in net assets (83,204) (66,700)
Total net assets - beginning
Total net assets - ending
5,214,401 1,333,305
$ 5,131,197 $ 1,266,605
The notes to the financial statements are an integral part of this statement.
98
Aviation Parking Harborview Clearwater
Operations System Center Harbor Marina Totals
$ 7,751 $ $ $ $ 3,749,122
7,435
- 4,342,238 5,974,774
249,262 1,099 409,021 43,938 1,968,783
257,013 4,343,337 409,021 43,938 11,700,114
49,854 1,369,661 81,130 3,577,179
110,064 2,420,057
24,029 63,978 8,781 26,395 248,252
506 111,570 5,412 423 500,013
39,608 63,977 102,049 9,624 434,204
199,841 300,619 521,676 1,288,184
20,125 883,970 4,310 1,759,675
9,251 201,555 250,607 495,115
1,369 7,693 33,326
442 17,688 7,971 1,153 54,310
- 921 1,676
30,830 56,050 9,731 380 159,881
4,093 303,365 16,050 442 406,961
- 655,725 657,285
3,997 171,663 5,905 1,385 289,798
2,260 35,670 10,160 5,000 122,320
50,951 54,566
50,873 1,442,637 352,744 16,053 2,275,238
384,836 4,236,412 1,105,036 133,625 12,502,802
(127,823) 106,925 (696,015) (89,687) (802,688)
11,425 537,446 22,796 141,518 862,927
(2,753) (68,933) (300,645) (379,367)
- (38,726) (38,726)
118,646 118,646
- - (8,383) (8,383)
75,025 14,466 30,730 53,528 369,977
83,697 482,979 163,789 (144,325) 925,074
(44,126) 589,904 (532,226) (234,012) 122,386
159,045 5,860 2,305,162 2,470,067
232,663 71,530 4,570,853 4,875,046
(12,490) (412,285) (4,638,449) (5,555,974)
102,429 416,142 (460,696) 2,003,554 1,911,525
3,388,572 18,344,286 7,568,420 11,665,754 47,514,738
$ 3,491,001 $ 18,760,428 $ 7,107,724 $ 13,669,308 $ 49,426,263
99
City of Clearwater, Florida
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Year Ended September 30, 2010
CASH FLOWS FROM OPERATING
ACTIVITIES
Cash received from customers
Cash payments to suppliers
Cash payments to employees
Cash payments to other funds
Other revenues
Net cash provided (used) by operating activities
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in from other funds
Transfers out to other funds
Payment of cash on loans to /from other funds
Net cash provided (used) by
noncapital financing activities
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Principal payments on debt
Interest paid
Acquisition of capital assets
Sale of capital assets
Capital contributed by other governmental entities
Net cash provided (used) by capital
and related financing activities
Recycling Marine
Utility Operations
$ 2,662,838 $ 3,952,206
(433,370) (2,768,568)
(1,088,414) (866,371)
(992,628) (102,220)
83,121 113,107
231,547 328,154
(237,570) (255,180)
(237,570) (255,180)
(80,551)
(6,778)
(155,940)
(243,269)
CASH FLOWS FROM INVESTING
ACTIVITIES
Interest on investments 154,223 1,635
Net cash provided by investing activities 154,223 1,635
Net increase (decrease) in cash and cash equivalents (95,069) 74,609
Cash and cash equivalents at beginning of year 4,584,178 56,296
Cash and cash equivalents at end of year $ 4,489,109 $ 130,905
Cash and cash equivalents classified as:
Cash and investments $ 4,489,109 $ 130,905
Restricted cash and investments
Total cash and cash equivalents $ 4,489,109 $ 130,905
The notes to the financial statements are an integral part of this statement.
100
Aviation Parking Harborview Clearwater
Operations System Center Harbor Marina Totals
$ 257,013 $ 4,326,948 $ 351,033 $
(316,533) (1,481,815) (755,061)
(53,965) (1,222,376)
(54,164) (1,094,968) (39,995)
75,025 14,466 30,730
(92,624) 542,255 (413,293)
51,410 $ 11,601,448
(242,806) (5,998,153)
(49,663) (3,280,789)
(6,956) (2,290,931)
53,528 369,977
(194,487) 401,552
71,530 4,570,853 4,642,383
(12,490) (412,285) (4,638,449) (5,555,974)
(4,000,000) (4,000,000)
(12,490) (4,412,285) 71,530 (67,596) (4,913,591)
(3,684) (9,135,000) (9,219,235)
(2,753) (68,933) (371,592) (450,056)
(15,753) (4,890,269) (5,061,962)
170,163 156,567 326,730
108,788 108,788
90,282 97,546 156,567 (14,396,861) (14,295,735)
11,451 561,434 22,159 176,385 927,287
11,451 561,434 22,159 176,385 927,287
(3,381) (3,211,050) (163,037) (14,482,559) (17,880,487)
321,734 18,076,703 918,445 14,914,634 38,871,990
$ 318,353 $ 14,865,653 $ 755,408 $ 432,075 $ 20,991,503
$ 318,353 $ 14,865,653 $ 755,408 $ 432,075 $ 20,991,503
$ 318,353 $ 14,865,653 $ 755,408 $ 432,075 $ 20,991,503
101
City of Clearwater, Florida
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Year Ended September 30, 2010
Recycling Marine
Utility Operations
Reconciliation of operating income (loss) to net
cash provided (used) by operating activities:
Operating income (loss) $ (69,610) $ 73,522
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Other nonoperating revenue 83,121 113,107
Depreciation 159,023 107,025
Change in assets and liabilities:
(Increase) decrease in accounts receivable (32,723)
(Increase) decrease in inventory 414
(Increase) decrease in prepaid expenses
Increase (decrease) in accounts and contracts payable 1,334 1,777
Increase (decrease) in deposits 963
Increase (decrease) in unearned revenue
(Increase) decrease in net pension asset 68,782 39,264
Increase (decrease) in accrued payroll 575 (20,966)
Increase (decrease) in other postemployment benefits 21,045 13,048
Total adjustments 301,157 254,632
Net cash provided (used) by operating activities $ 231,547 $ 328,154
Noncash investing, capital and financing activities:
Amortization of bond issuance costs $ $
Capital assets transferred from General Government $ $
102
Aviation Parking Harborview Clearwater
Operations System Center Harbor Manna Totals
$ (127,823) $ 106,925 $ (696,015) $ (89,687) $ (802,688)
75,025 14,466 30,730 53,528 369,977
199,841 300,619 521,676 1,288,184
11,188 (21,535)
22,967 23,381
21,980 21,980
(235,556) (10,651) (256,643) (197,267) (697,006)
367 (69,176) 7,472 (60,374)
(16,756) (16,756)
2,627 59,726 170,399
(7,265) 35,383 14,807 22,534
527 52,176 16,660 103,456
35,199 435,330 282,722 (104,800) 1,204,240
$ (92,624) $ 542,255 $ (413,293) $ (194,487) $ 401,552
$ $ $ $ (38,727) $ (38,727)
$ $ $ $ 1,000,000 $ 1,000,000
103
Internal Service Funds
Internal service funds are used to account for services and commodities furnished by a designated
department to other departments within the City or to other governments on a cost reimbursement basis.
Garage Fund - to account for the cost of automotive and other motorized equipment of the City. The
acquisition cost of new or upgraded equipment is financed through user departments and the asset value
is simultaneously contributed to the Garage Fund. The cost of replacement of existing equipment is
financed by the Garage Fund.
Administrative Services Fund - to account for various support activities including information technology,
printing, mailing, and telephone services. The cost for these services is charged to user departments
based on the cost of providing units of service.
General Services Fund - to account for various support activities including building maintenance and
custodial services for all City departments and facilities. The cost for these services is charged to user
departments based on the cost of providing units of service.
Central Insurance Fund - to account for the City's limited self- insurance program wherein all funds are
assessed charges based on damage claims incurred and on management's assessment of individual
funds' risk exposure. All claims and premiums are paid out of this fund, together with other costs
necessary to administer the program. Medical insurance premiums are also paid from this fund.
105
City of Clearwater, Florida
Combining Statement of Net Assets
Internal Service Funds
September 30, 2010
Administrative General Central
Garaae Services Services Insurance Total
ASSETS
Current assets:
Cash and investments $ 5,189,200 $ 6,698,751 $ 1,495,105 $ 37,819,708 $ 51,202,764
Accrued interest receivable 29,135 39,964 8,098 224,676 301,873
Due from other funds 111,925 111,925
Inventories, at cost 459,884 - 459,884
Prepaid expenses and other assets 228,015 9,847 1,011,819 1,249,681
Total current assets 5.906,234 6,748,562 1,503,203 39,168,128 53,326,127
Noncurrent assets:
Advances to other funds - 631,007 631,007
Net pension asset 138,087 347,477 53,433 18,588 557,585
Capital assets:
Land and other nondepreciable assets 729,591 - 729,591
Capital assets, net of accumulated depreciation 9,804,894 3,915,302 _ 87.732 4,159 13.812,087
Total noncurrent assets 10,672.572 4,262,779 141,165 653,754 15,730,270
Total assets 16,578.806 11,011,341 1.644.368 39.821,882 69.056,397
LIABILITIES
Current liabilities:
Accounts and contracts payable
Accrued payroll
Unearned revenue
Current portion of long -term liabilities:
Compensated absences
Notes, loan pool agreement and acquisition contracts
Advances from other funds
Claims payable
Total current liabilities (payable from current assets)
262,366 88,929 67,109 1,136, 668 1,555,072
94,164 175,828 100,862 19,240 390,094
765,667 - 765,667
121,070
2,696,440
3,939,707
292,273 113,731 43,672 570,746
127,346 12,710 2,836,496
91,654 91,654
- 1.988, 300 1.988.300
776,030 294.412 3,187,880 8,198,029
Noncurrent liabilities:
Compensated absences 64,445 155,576 60,539 23,247 303,807
Other postemployment benefits 130,862 236,498 135,329 23,807 526,496
Notes, loan pool agreement and acquisition contracts 4,277,414 267,520 4,544,934
Advances from other funds 549,921 549,921
Claims payable 6,106,700 6,106.700
Total noncurrent liabilities 4,472.721 1,209,515 195,868 6,153.754 12,031,858
Total liabilities 8.412,428
1,985,545 490.280 9.341.634 20,229,887
NET ASSETS
Invested in capital assets, net of related debt 3,560,631 3,520,436 75,022 4,159 7,160,248
Unrestricted 4,605,747 5,505,360 1.079,066 30,476.089 41,666,262
Total net assets $ 8.166,378 $ 9,025,796 $ 1,154,088 $ 30,480,248 $ 48,826,510
The notes to the financial statements are an integral part of this statement.
106
City of Clearwater, Florida
Combining Statement of Revenue, Expenses, and Changes in Fund Net Assets
Internal Service Funds
For the Year Ended September 30, 2010
Administrative General Central
Garage Services Services Insurance Total
Operating revenues
Billings to departments $ 11,385,492 $ 9,036,004 $ 4,959,120 $ 16,691,655 $ 42,072,271
Operating expenses:
Personal services 2,740,174 4,912,316 2,779,910 547,691 10,980,091
Purchases for resale 3,890,883 - 3,890,883
Operating materials and supplies 151,063 60,129 395,342 3,951 610,485
Transportation 449 89,044 175,443 2,528 267,464
Utility service 128,032 - 492,581 620,613
Depreciation 3,839,077 891,650 18,455 2,980 4,752,162
Interfund administrative charges 221,007 4,000 - - 225,007
Other current charges:
Professional fees 319,369 192,310 - 44,901 556,580
Communications 15,773 1,017,515 33,875 3,792 1,070,955
Printing and binding 16,804 70 16,874
Insurance
Premiums 32,600 23,850 36,140 12,326,846 12,419,436
Claims incurred - 2,189,997 2,189,997
Repairs and maintenance 546,729 1,011,882 861,414 14,370 2,434,395
Rentals 2,246 344,919 9,214 650 357,029
Miscellaneous 17,602 110,295 24,719 79,147 231,763
Data processing charges 128,660 181,010 88,780 12,190 410,640
Taxes 7,021 - - 7,021
Total other current charges 1,070,000 2,898,585 1,054,212 14,671,893 19,694,690
Total operating expenses 12,040,685 8,855,724 4,915,943 15,229,043 41,041,395
Operating income (loss) (655,193) 180,280 43,177 1,462,612 1,030,876
Nonoperating revenues (expenses)
Investment earnings 161,578 220,528 45,162 1,271,779 1,699,047
Interest expense (241,752) (34,785) (1,182) (277,719)
Gain on sale of capital assets 278,065 278,065
Loss on disposal of capital assets (12,408) - (12,408)
Other 171,500 2,656 3,022 177,178
Total nonoperating revenue (expenses) 369,391 173,335 46,636 1,274,801 1,864,163
Income (loss) before contributions and transfers (285,802) 353,615 89,813 2,737,413 2,895,039
Capital grants and contributions - 15,000 15,000
Transfers in 53,760 4,745,260 4,799,020
Transfers out (70,000) (100,000) (2,500) (4,720,000) (4,892,500)
Change in net assets (302,042) 268,615 87,313 2,762,673 2,816,559
Total net assets - beginning 8,468,420 8,757,181 1,066,775 27,717,575 46,009,951
Total net assets - ending $ 8,166,378 $ 9,025,796 $ 1,154,088 $ 30,480,248 $ 48,826,510
The notes to the financial statements are an integral part of this statement.
107
CASH FLOWS FROM OPERATING
ACTIVITIES
Cash received from other funds
Cash payments to suppliers
Cash payments to employees
Cash payments to other funds
Other revenues
Net cash provided by operating activities
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in from other funds
Transfers out to other funds
Receipt of cash on loans to /from other funds
Payment of cash on loans to /from other funds
Net cash provided (used) by
noncapital financing activities
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Principal payments on debt
Interest paid
Acquisition of capital assets
Sale of capital assets
Proceeds from issuance of debt
Net cash provided (used) by capital
and related financing activities
CASH FLOWS FROM INVESTING
ACTIVITIES
Interest on investments
Net cash provided by investing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Cash and cash equivalents classified as:
Cash and investments
City of Clearwater, Florida
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30, 2010
Administrative General Central
Garage Services Services Insurance Total
1
1
$ 11,385,492 $ 9,036,004 $ 4,959,120 $ 16,691,655 $ 42,072,271
(4,905,463) (2,477,565) (1,762,979) (13,191,626) (22,337,633)
(2,539,368) (4,648,725) (2,582,890) (517,918) (10,288,901)
(583,141) (537,550) (345,942) (206,002) (1,672,635)
107,695 2,656 3,022 113 373
3,465,215 1,372,164 269,965 2,779,131 7,886,475
53,760
15,000
(100,000)
(91, 654)
53,760 (176,654)
(2,958,308)
(241, 752)
(3,144,056)
320,064
2,690,692
(3,333,360)
(173,778)
(34, 785)
(211,672)
31,698
(388,537)
(2,500)
(2,500)
(21, 766)
(1,182)
4,745,260
(4,720,000)
2,091,652
1
1
4,814,020
(4,822,500)1
2,091, 652
(91, 654)
2,116,912 1 991 518
(3,153,852)
(277,719)
(3,355,728)
320,064
2, 722, 390
(22,9481 (3,744,845)1
162,838 223,741 45,179 1,339,644 1,771,402 I
162,838 223,741 _45,179 1,339,644 1,771,402
348,453
4,840,747
$ 5,189,200 $
$ _5.189.200 $
The notes to the financial statements are an integral part of this statement.
108
1,030,714 289,696 6,235,687 7,904,550 I
5,668,037 1,205,409 31,584,021 43,298,214
6,698,751 $ 1,495,105 $ 37,819,708 $ 51,202,764
6,698,751 $
1,495.105 $ 37,819,708 $ 51,202,764
1
1
1
1
City of Clearwater, Florida
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30, 2010
Administrative General Central
Garage Services Services Insurance
Total
Reconciliation of operating income (loss) to net
cash provided (used) by operating activities:
Operating income (loss) $ (655,193) $ 180,280 $ 43,177 $ 1,462,612 $ 1,030,876
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Other nonoperating revenue 107,695 2,656 3,022 113,373
Depreciation 3,839,077 891,650 18,455 2,980 4,752,162
Change in assets and liabilities:
(Increase) decrease in inventory (77,337) (77,337)
(Increase) decrease in prepaid expenses (125,923) (8,152) 89,795 (44,280)
Increase (decrease) in accounts and contracts payable 176,089 (20,896) 8,658 1,190,949 1,354,800
(Increase) decrease in net pension asset 176,620 280,519 154,569 34,978 646,686
Increase (decrease) in accrued payroll (17,741) (16,927) 8,601 (12,849) (38,916)
Increase (decrease) in other postemployment benefits 41,928 65,690 33,849 7,644 149,111
Total adjustments 4,120,408 1,191,884 226,788 1,316,519 6,855,599
Net cash provided by operating activities
$ 3,465,215 $ 1,372,164 $ 269,965 $ 2,779,131 $ 7,886,475
109
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.
Firefighters' Relief and Pension Fund - to account for the financial operation and condition of the Firefighters'
Relief and Pension Plan, closed to new members in 1962, and containing 39 retired members with no active
members. The Plan was fully funded effective with fiscal year 2007.
Police Supplemental Pension Fund - to account for the financial operation and condition of a supplemental
pension plan funded by the State for swom police officers.
Firefighters Supplemental Pension Fund - to account for the financial operation and condition of a
supplemental pension plan funded by the State for firefighters.
Treasurer's Escrow Agency Fund - to account for the receipt, custody, and expenditure of funds held
temporarily in trust for other parties.
111
City of Clearwater, Florida
Combining Statement of Fiduciary Net Assets
Fiduciary Funds
September 30, 2010
Defined Benefit Defined Contribution
Pension Trust Funds Pension Trust Funds
Police Firefighters
Employees' Firefighters Supplemental Supplemental Totals
ASSETS
Cash and investments $ 2,147,576 $ 3,521,390 $ 14,316 $ $ 5,683,282
Managed investment accounts, at fair value:
Cash and cash equivalents 44,269,308 196,412 238,308 44,704,028
Government bonds 20,806,611 2,931,414 1,242,173 24,980,198
Agency bonds 16,487,284 3,338,315 630,344 20,455,943
Domestic corporate bonds 68,164,247 1,139,437 2,757,717 72,061,401
International equity securities 77,868,022 3,067,503 80,935,525
Domestic stocks 246,319,113 6,178,276 1,502,921 254,000,310
Mortgage backed bonds 72,356,017 39,796 625,697 73,021,510
Commodity exchange- traded funds 818,343 818,343
Domestic equity mutual funds 38,754,649 2,689,984 41,444,633
International equity mutual funds 28,791,544 668,178 29,459,722
Total managed investment accounts 614,635,138 3,338,315 14,183,182 9,724,978 641,881,613
Securities lending collateral 119,758,961 119,758,961
Receivables:
Interest and dividends 1,903,605 51,957 51,306 53,888 2,060,756
Unsettled investment sales 35,351,583 35,351,583
Securities lending earnings 34,219 34,219
Due from others 104,222 165,534 269,756
Total receivables 37,393,629 51,957 51,306 219,422 37,716,314
Total assets 773,935,304 6,911,662 14,248,804 9,944,400 805,040,170
LIABILITIES
Accounts payable 715,088 715,088
Unsettled investment purchases 39,630,890 39,630,890
Obligations under securities lending 119,758,961 119,758,961
Total liabilities 160,104,939 160,104,939
NET ASSETS
Net assets held in trust for pension benefits $ 613,830,365 $ 6,911,662 $ 14,248,804 $ 9,944,400 $ 644,935,231
The notes to the financial statements are an integral part of this statement.
112
City of Clearwater, Florida
Combining Statement of Changes in Fiduciary Net Assets
Fiduciary Funds
For the Year Ended September 30, 2010
Defined Benefit Defined Contribution
Pension Trust Funds Pension Trust Funds
Police Firefighters
Employees' Firefighters Supplemental Supplemental Totals
ADDITIONS
Contributions:
Contributions from employer $ 15,594,733 $ $ - $ - $ 15,594,733
Contributions from employer- state tax 12,000 853,994 1,191,516 2,057,510
Contributions from employees 6,071,578 6,071,578
Total contributions 21,678,311 853,994 1,191,516 23,723,821
Investment income:
Net appreciation in fair value of investments 68,138,734 14,522 813,924 484,262 69,451,442
Interest 8,240,876 380,452 201,664 187,492 9,010,484
Dividends 5,351,612 199,316 43,385 5,594,313
81,731,222 394,974 1,214,904 715,139 84,056,239
Less investment expenses:
Investment management / custodian fees 3,404,794 76,970 81,426 3,563,190
Net income from investing activities 78,326,428 394,974 1,137,934 633,713 80,493,049
Securities lending income:
Gross eamings 451,562 451,562
Rebate paid (43,671) (43,671)
Bank fees (142,598) (142,598)
Net income from securities lending 265,293 265,293
Total additions 100,270,032 394,974 1,991,928 1,825,229 104,482,163
DEDUCTIONS
Benefits and withdrawal payments:
Benefits 26,656,884 778,817 1,269,190 539,862 29,244,753
Withdrawal payments 725,713 725,713
Total benefits and withdrawal payments 27,382,597 778,817 1,269,190 539,862 29,970,466
Income (loss) before administrative expenses 72,887,435 (383,843) 722,738 1,285,367 74,511,697
Administrative expenses 174,564 4,306 13,864 13,142 205,876
Net increase (decrease) 72,712,871 (388,149) 708,874 1,272,225 74,305,821
Net assets held in trust for pension benefits:
Beginning of year 541,117,494 7,299,811 13,539,930 8,672,175 570,629,410
End of year $ 613,830,365 $ 6,911,662 $ 14,248,804 $ 9,944,400 $ 644,935,231
The notes to the financial statements are an integral part of this statement.
113
City of Clearwater, Florida
Statement of Changes in Assets and Liabilities
Agency Fund
For the Year Ended September 30, 2010
Balance Balance
October 1, September 30,
2009 Additions Deductions 2010
TREASURER'S ESCROW FUND
ASSETS
Cash and investments $ 424,929 772,197 769,233 $ 427,893
Accrued interest receivable 2,391 1,916 2,391 1,916
Total Assets $ 427,320 774,113 771,624 $ 429,809
LIABILITIES
Other miscellaneous payables:
Downtown Development Board $ 311,453 532,023 529,236 $ 314,240
Special purpose funds 7,640 1,179 1,179 7,640
Other 108,227 240,911 241,209 107,929
Total Liabilities $ 427,320 774,113 771,624 $ 429,809
The notes to the financial statements are an integral part of this statement.
114
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Supplementary
Information
115
Page 1 of 5
City of Clearwater, Florida
Continuing Disclosure - Gas System Revenue Bonds
Series 2004, 2005, and 2007
Supplementary Information
The System:
Rates, Fees and Charges
The City Council has established a schedule of rates and charges by ordinance, which includes a
purchased gas cost adjustment provision allowing the City to pass- through to customers any increase or
decrease in the purchased price of gas. The City is not subject to regulation by any State agency in
establishing or revising its rates. Where competitive fuel sources or transportation service are available
to the customer, the City Council has authorized the City Manager to enter into contract gas service rates
at special rates and /or conditions as required to obtain /retain the customer load. Such contract service
must meet the normal construction feasibility formula to insure profitable payback to the City. As of
September 30, 2010, contract rates applied to 203 customer accounts and impacted 11.39% of total
revenues.
The rates charged by the System through September 30, 1996, were part of the Phase I Gas Rate Case
implemented October 1, 1995, which was based on a comprehensive cost of service study performed by
the Utility Advisory Services Group of the international accounting firm of Coopers & Lybrand, LLP (the
"Rate Study "). This Phase I implementation resulted in an extensive overhaul of the Gas System
customer rates, providing numerous classes of service and a modernized billing methodology.
The new rates, effective October 1, 1996, were designed to be industry-based and responsive to the
competitive energy challenges. The goal of the Rate Study was to establish rates which would be fair to
all classes of customers, provide funding to implement planned expansion in both existing northern
Pinellas County services area and into the newly acquired southwestern Pasco service area, and provide
an adequate growth potential in return to the City of Clearwater to further offset the ad valorem tax rates
(current impact is about 0.5 mills).
As the result of experiences during the first seven months of the Phase 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 1I and Phase III rate changes was approved by the City Council
on June 6, 1996. Gas rates for customer charges were increased effective April 1, 2005. The total
estimated annual impact of this rate increase was $373,352.
New rates, effective October 1, 2008, were designed to recover the costs of providing service to
respective classes of customers. The goal of the "Cost of Service and Rate Study" was to establish rates
which would be sufficient to meet Clearwater Gas System's total revenue requirements and reflect cost
of service consideration and practical rate implementation constraints as required.
116
• all MI OM MI NM a MI N•• - -- MI r MI • OM
CLEARWATER GAS SYSTEM
NATURAL GAS RATE BILLING FACTORS
FOR AUGUST 1, 2010 - SEPTEMBER 31, 2010 BASED ON APPROVED GAS ADJUSTMENT FACTORS
Firm Natural Gas Rate Schedules
Applicable Annual Therm Range
or Other Rate Determinant
Monthly Customer Charge
(For Central Pasco Territory)
Non- Fuel Enerov CharaelTherm
Non -Fuel Energy Charge
Energy Conservation Adj. (ECA)
Regulatory Imposition Adj. IRIA)
Usage & Inflation Adj. (ulA)
Total Non -Fuel Energy Charge
Purchased Gas Adjustment (PGA)
Total Energy Charge/Therm
Minimum Monthly Bill
(For Central Pasco Territory)
Compares to LP /Gallon Rate of
with 6.0% Franchise
Change from 1/06 Therm Rate
% Change from 1/06 Therm Rate
Utility Tax Note:
Fuel Rate per Therm 10/01/1973
Non - Utility Taxable Fuel/Therm
_ SMF MMF LMF SGS MOS LOS RAC GAC - SL wlM&
Relight
NA (1 - NA (4 + NA (4 + NA (4 + 0 • 18,000- 100,000 NA (1 • NA (0 - NA (150 NA NA
3 Units) units) units) Units) 17,999 99,999 & up 3 units) 149 tons) tons & +1
510.00 $25.00 $40.00 595.00 525.00 540.00 595.00 $10.00 525.00 540.00 $20.00
(S18.00) (540.00) )570.00) (5160.00) ($40.00) (570.00) (5160.001 ($18.00) (540.001 (570.001 (530.00)
If not prevlf not orev If not prey
blued billed billed
50.48
0.09
0.03
4.00
50.60
$0 -7g
50.48
0.09
0.03
0.00
S0.60
SO 72
$0.48 50.48 $0.46 50.40 S0.34
0.09 0.09 0.09 0.09 0.09
0.03 0.03 0.03 0.03 0.03
4.40 4.04 0.00 9.00 0.20
$0.60 50.60 50.58 $0.52 $0.46
1129 $0.79 SO 72 5079 50.79
$0.20
NA
NA
_IA
50.20
5179
50.15
NA
NA
CIA
$0.15
5074
$1.39 $1.39 $1.39 $1.39 51.37 $1.31 $1.25 $0.99 50.94
510.00
(518.001
NA
Interr. Contract
NG Rate NG Rate
NGV NSS_ CNS
NA 100,000
& up
NA
S20.00 BY Contract 550.00 $250.00 By Contract
(530.00) (By Contract) (575.00) ($400.001 (By Contract)
If not prey
Oleo
50.10 50.20 $0.35 By Contract
NA NA NA NA
NA NA NA NA
_NA _IA _NA CIA
$0.10 50.20 50.35 BY Contract
5079 $079 5079 Q11
S0.89 50.99 51.14 0.71
+ Non-Fuel
By Contract
(By Contract)
+ FAC
50.46
NA
NA
CIA
$0.46
QZ1
50.28
NA
NA
S0.28
4.Z1
By Contract
NA
NA
_NA
By Contract
221
1.17 0.99 0.71
+ Non -Fuel
customer
charge +
+ FAC + Non-Fuel Non -Fuel Therm
Therm Rate foiRate for Contract
Contract / M of Therms
Of Therms
525.00 540.00 595.00 $25.00 $40.00 595 -00 $10.00 $25.00 $40.00 $20.00 $20.00 $50.00 $250.00
($40.00) (570.00) ($160.00) (540.00) ($70.00) ($160.00) ($18.00) (540.00) (570.00) 1530.001 1530.00) ($75.00) (5400.001
@premisE @premise @premise + FAC + FAC
5 1.27 5 1.27 S 1.27 S 1.27 5 1.25 S 1.20 S 1.14 $ 0.91 S 0.86 S 0.81 5 0.91 S 1.04 S 0.65 S 1.07 5 0.91
S 1.35 S 1.35 S 1.35 S 1.35 S t33 S 1.27 S 1.21 S 0.96 S 0.91 S 0.86 S 0.96 S 1.11 S 0.69 S 1.13 S 0.96
($0.87) (50.871 (50.87) ($0.87) ($0.78) (50.78) (50.78) ($0.89) ($0.89) ($0.89) ($0.89) (50.84) (51.071 ($0.98) (SO.751 150.75)
-38.5% -38.5% -38.5% -38.5% -36.3% -37.3% -38.4% - 47.3 % -48.6% -50.0% -47.3% -42.4% -60.1% -45.6% -43.1% -51.4%
50.069 50.069 50.069 50.069 50.069 50.069 50.069 S0.069 50.069 50.069 50.069 50.069 50.069 50.069 50.055 50.069
50.721 50.721 50.721 50.721 50.721 50.721 50.721 50.721 S0.721 S0.721 50.721 50.721 S0.641 50.641 50.655 50.641
BTU FACTOR = THERMS /100 CUBIC FEET (CCF)
Firm Service Rates
Interruptible Service Rates
10/2009
1.045
1.025
11/2004 12/202 2009 11/201Q 02/701Q 43/2014 44/201Q 0512010 06/2010 07/2010 98/201Q 09/201Q1nnual Averaoe
1.043 1.043 1.045 1.043 1.042 1.041 1.041 1.040 1.039 1.039 1.039 1.042
1.022 1.022 1.025 1.023 1.022 1.021 1.021 1.020 1.018 1.018 1.019 1.021
Page 3 of 5
City of Clearwater, Florida
Continuing Disclosure - Gas System Revenue Bonds
Series 2004, 2005, and 2007
Supplementary Information
GAS SUPPLY
On August 1, 1990, the Federal Energy Regulatory Commission (FERC) deregulated the natural gas pipeline industry.
This allows other natural gas suppliers and local distribution companies, like the City of Clearwater, to transport gas over
the Florida Gas Transmission (FGT) pipelines as opposed to purchasing natural gas supply from only FGT.
The two natural gas transmission companies that serve within the State of Florida are Florida Gas Transmission (FGT)
and Gulfstream. Currently FGT is the sole provider of transportation service to the City. FGT is equally owned by Cross
Country Energy Corp (owned by Southern Union) and Southern Natural, an El Paso Corporation Affiliate.
The City joined Florida Gas Utility (FGU) in October 2000 by Resolution 00 -35. FGU is responsible for the purchase &
management of the City's natural gas supply. An updated All Requirements Gas Service Agreement, which was
approved by Resolution 02 -02 in January 2002, required the City to purchase 100% of its supply through FGU. FGU was
formed through an Interlocal Agreement among its members. The Interlocal Agreement became effective on September
1, 1989 and consisted of five municipal utilities. Over the next several years, additional electric and gas distribution
utilities joined FGU, bringing its current membership to 25 entities.
In addition, the City has entered into a Gas Supply & Transportation Agreement with Peoples Gas System (PGS), dated
12/02/04, to purchase natural gas to serve customers located in our Central Pasco territory, generally east of the
Suncoast Parkway in Pasco County. The City received a letter from FGU Council, dated 8/31/04, granting the City
permission to utilize TECO Peoples Gas as a third party gas supplier since FGU is unable and unwilling to provide gas to
the City within the meaning of the provisions of Section 3 (a)(i) and (ii) of the. ALL Requirements Gas Service Agreement
between the City and FGU.
The City has two Firm Transportation Service agreements (FTS -1 & FTS -2) with FGT in order to deliver natural gas to
the City's four gate stations. FGU is currently managing the City's Phase II (FTS -1) and Phase III (FTS -2) transportation
capacity on a daily basis. Table 1 shows the breakdown of the City's annual gas supply entitlements with FGT. The total
annual entitlement is 3,212,226 decatherms of natural gas transportation.
Table 1 Breakdown of Transportation Capacit
Contract Period
Phase II (FTS -1)
MMBtu Per Day
2/01/07 - 1/31/17
Phase III (FTS -2)
MMBtu Per Day
12/9/91 - 2/28/15
Total
MMBtu
Per Day
October
170,438
41,788
212,226
Nov -Mar
1,543,069
268,931
1,812,000
April
216,570
53,430
270,000
May -Sept
711,756
206,244
918,000
Total Annual
2,641,833
570,393
3,212,226
118
t
1
t
t
1
1
Page 4 of 5
City of Clearwater, Florida
Continuing Disclosure — Gas System Revenue Bonds
Series 2004, 2005, and 2007
Supplementary Information
Service Area
The Clearwater Gas System (CGS) is owned and operated as an enterprise utility by the City of
Clearwater. CGS operates over 825 miles of underground gas main and handles the supply and
distribution of both natural and propane (LP) gas throughout northern Pinellas County and western Pasco
County. As a "full service" gas utility, CGS provides gas appliance sales, installation of inside customer
gas piping, domestic and commercial gas equipment service, construction and maintenance of
underground gas mains and service lines, and 24 -hour response to any gas emergency within the service
area. CGS is regulated for safety by the Florida Public Service Commission and the Federal Department
of Transportation.
CGS has been serving customers in the Clearwater area for over 87 years (since 1923) when operations
were begun with a manufactured gas plant operation from coal and coke. In 1959, when natural gas
transmission lines were finally extended to the Florida peninsula, CGS discontinued manufacturing gas
and began receiving piped natural gas from Florida Gas Transmission.
Clearwater Gas System serves over 19,581 customers in a 330 square mile service territory, which
includes 20 municipalities as well as the unincorporated areas of northern Pinellas County and western
Pasco County. The Pinellas County service territory is 158 square miles and extends generally from
Ulmerton and Walsingham Roads on the south to the Pasco County line on the north and from the Gulf of
Mexico on the West to the Hillsborough County line on the east. This includes all of the Pinellas beach
communities south to Redington Beach. The Pasco County service territory is 172 square miles and
extends from the Gulf of Mexico on the West inland about 20 miles to just east of State Road 41 and Land
0' Lakes and from the Pinellas and Hillsborough County lines on the South to generally State Road 52 on
the north. The CGS service territory extends 42.3 miles from the southwestern -most to the northwestern -
most points.
Clearwater Gas System prides itself in being a competitive and public service- minded utility, providing
safe, economical and environmentally - friendly gas, which is made in America, available in our
communities for all of the homes and businesses in our service area, with special focus on the residential
customers who make up 88.87% of our customer base.
119
Page 5 of 5
City of Clearwater, Florida
Continuing Disclosure - Gas System Revenue Bonds
Series 2004, 2005, and 2007
Supplementary Information
As of September 30, 2010 the System's active natural gas customers were located as shown in the
following table:
Location
Belleair
Belleair Beach
Belleair Bluffs
Belleair Shores
Clearwater
Dunedin
Indian Rocks Beach
Indian Shores
Largo
New Port Richey
North Redington Beach
Oldsmar
Port Richey
Redington Beach
Redington Shores
Safety Harbor
Tarpon Springs
Unincorporated Areas Pasco
Central Pasco
Unincorporated Areas Pinellas
Total
Meters Percentage
412 2.36%
159 0.91%
25 0.14%
25 0.14%
6,523 37.30%
1,064 6.08%
90 0.51%
68 0.39%
895 5.12%
297 1.70%
11 0.06%
92 0.53%
13 0.07%
49 0.28%
32 0.18%
562 3.21%
1,437 8.22%
2,659 15.20%
332 1.90%
2,744 15.69%
17,489 100.00%
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, 2010:
Customer Name
Morton Plant Hospital
Mease Hospital
Angelica Textile Service
Metal Industries
Ajax Paving Industries
Peak Monthly % of Gross
Therms Revenues
113,995 3.62%
90,502 2.38%
72,967 1.84%
59,810 1.78%
55,408 1.28%
The following table shows the breakdown of the System's customers by category as well as the volume
of gas sold and the sales revenues generated by each category for the year ended September 30, 2010:
Interruptible
Residential
Commercial
Interruptible
Residential
Commercial
Totals
Average No.
Customers
14
15,396
2,093
Therms
5,185,749
3,801,675
12,662,059
21,649,483
120
Gas
Volume
23.95%
17.56%
58.49%
Revenues
$ 4,718,638
7,390,940
18,055,231
$ 30,164,809
Gas
Sales
15.64%
24.50%
59.86%
Page 1 of 3
City of Clearwater, Florida
Continuing Disclosure — Water and Sewer Refunding Revenue Bonds
Series 2003 and 2009B; and Revenue Bonds Series 2002, 2006, and 2009A
Supplementary Information
Water System:
Historical Financial Information
Source and Volume of Water Pumped
(in million gallons per day, averaged over the fiscal year)
FY City Wells County Total
2005 3.550 10.630 14.180
2006 4.093 9.999 14.092
2007 3.570 9.090 12.660
2008 3.075 8.844 11.919
2009 3.738 7.781 11.519
2010 3.940 6.820 10.760
Historical Growth in Number of Water Customers
(all figures are as of September of the year indicated)
Year Water Customers
2005 40,178
2006 40,467
2007 40,407
2008 40,131
2009 39,935
2010 39,971
Ten Largest Water Customers
Fiscal Year Ending September 30, 2010
Water Used Revenues
Name of User (in 100 Cubic Feet) Produced
1. City of Clearwater 69,391 $ 608,542
2. Church of Scientology FSO Inc. 115,784 581,161
3. Morton Plant Hospital 63,055 360,585
4. Pinellas County Schools 39,555 302,082
5. Clearwater Housing Authority 39,906 191,223
6. IMT -LB Central FL Portfolio LLC 49,378 222,972
7. Pinnacle Management Corp. 35,055 168,597
8. Sandpearl Resort LLC 38,330 170,809
9. Crystal Beach Capital LLC 19,917 142,669
10. Brenntag Mid - South, Inc. 25.335 131.388
Total 495,706 $ 2.880.028
121
Page 2 of 3
City of Clearwater, Florida
Continuing Disclosure — Water and Sewer Refunding Revenue Bonds
Series 2003 and 2009B; and Revenue Bonds Series 2002, 2006, and 2009A
Supplementary Information
Sewer System:
Average Sewage Flow Historical Growth in Number of Sewer Customers
(as of September of the year indicated)
Fiscal Annual Ave. Daily Fiscal
Year Flow In MGD Year Sewer Customers
2005 14.7 2005 33,305
2006 13.8 2006 33,279
2007 13.6 2007 33,255
2008 14.0 2008 33,146
2009 13.6 2009 33,084
2010 14.3 2010 33,041
Ten Largest Sewer Customers
Fiscal Year Ending September 30, 2010
Sewer Used Revenues
Name of User (in 100 Cubic Feet) Produced
1. Church of Scientology 95,297 $ 553,756
2. Morton Plant Hospital 31,662 338,451
3. Pinellas County Schools 59,760 394,686
4. City of Clearwater 38,647 384,018
5. Clearwater Housing Authority 39,906 199,693
6. IMT -LB Central FL Portfolio LLC 47,688 252,185
7. Pinnacle Management Corp. 30,197 162,313
8. Sandpearl Resort LLC 38,330 191,968
9. Bre /Clearwater Owner LLC 35,055 175,477
10. Publix 10,542 147.004
427,084 $ 2,799,551
Rates, Fees And Charges
The City uses a three - tiered rate structure for water and sewer usage. The base rate includes a
minimum usage for residential and nonresidential water rates. Any usage over the minimum is
billed at one rate per 1,000 gallons up to a designated level and at a second rate for usage over
that level. For irrigation, there is a base rate, with no minimum, and a charge per 1,000 gallons of
water usage up to a designated level and a higher charge for usage over that amount. The sewer
base rate includes a minimum usage and a fixed charge per 1,000 gallons of water usage over
the basic allowance. The minimum usage and second tier usage level vary with the size of the
meters. For fiscal year 2010 there were no changes to the three - tiered rate structure for water or
sewer usage.
122
Page 3 of 3
City of Clearwater, Florida
Continuing Disclosure - Water and Sewer Refunding Revenue Bonds
Series 2003 and 2009B; and Revenue Bonds Series 2002, 2006, and 2009A
Supplementary Information
Residential and
Nonresidential Water 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
October 1, October 1, October 1, October 1, October 1,
2006 2007 2008 2009 2010
Gallons
12.03 12.75 13.65 14.58 15.60
28.07 29.75 31.85 34.02 36.40
401.00 425.00 455.00 486.00 520.00
934.33 990.25 1,060.15 1,132.38 1,211.60
1,439.59 1,525.75 1,633.45 1,744.74 1,866.80
2,770.91 2,936.75 3,144.05 3,358.26 3,593.20
7,117.75 7,543.75 8,076.25 8,626.50 9,230.00
12,030.00 12, 750.00 13,650.00 14, 580.00 15, 600.00
Additional charges are assessed for usage in excess of designated minimums.
Rates for Irrigation (Lawn) Meters
October 1, October 1, October 1, October 1, October 1,
2006 2007 2008 2009 2010
Size of Meter Gallons
Minimum- Under 1 inch
1 inch
1.5 inch
2 inch
3 or 2 inch manifold
4 inch
6 inch
Sewer Rates
4.28 4.54 4.86 5.20 5.56
12.86 13.63 14.58 15.60 16.69
64.31 68.17 72.94 78.05 83.51
180.06 190.86 200.22 218.52 233.82
355.84 377.19 403.59 431.84 462.07
685.97 727.13 778.03 832.49 890.76
2,070.75 2,195.00 2,348.65 2,513.06 2,688.97
October 1, October 1, October 1, October 1, October 1,
2006 2007 2008 2009 2010
Size of Meter Gallons
Minimum- Under 1 inch
1 inch
1.5 inch
2 inch
3 or 2 inch manifold
4 inch
6 inch
8 inch
Per 1,000 gallons of water used over
that allowed in minimum
Additional Indebtedness
16.53 17.52 18.75 20.07 21.48
38.57 40.88 43.75 46.83 50.12
551.00 584.00 625.00 669.00 716.00
1,283.83 1,360.72 1,456.25 1,558.77 1,668.28
1,978.09 2,096.56 2,243.75 2,401.71 2,570.44
3,807.41 4,035.44 4,318.75 4,622.79 4,947.56
9,780.00 10,366.00 11,093.75 11,874.75 12, 709.00
16,530.00 17,520.00 18,750.00 20,070.00 21,480.00
5.51 5.84 6.25 6.69 7.16
No additional indebtedness was incurred for capital improvements to the water and sewer systems or for
the lease purchase of capital equipment.
123
City of Clearwater, Florida
Continuing Disclosure — Stormwater System Revenue Bonds
Series 2002, 2004, and 2005
Supplementary Information
Rates, Fees, and Charges
The City uses a measurement of one equivalent residential unit or ERU as the basis for the
stormwater management utility fee. The rate per ERU was unchanged from the inception of the
utility on January 1, 1991 until 1998 when annual increases were adopted for five fiscal years
beginning October 1, 1998. In November 2001, additional increases were adopted including a
change to the increase previously adopted, to be effective October 1, 2002. Effective August 5,
2004, additional increases were adopted. On July 20, 2006, rate increases were adopted for the
five -year period beginning October 1, 2007. An increase was adopted on June 19, 2008, for the
one -year period beginning October 1, 2012. The monthly rates are as follows:
Effective Date
January 1, 1991
October 1, 1998
October 1, 1999
October 1, 2000
October 1, 2001
January 1, 2002
October 1, 2002
October 1, 2003
October 1, 2004
October 1, 2005
October 1, 2006
October 1, 2007
October 1, 2008
October 1, 2009
October 1, 2010
October 1, 2011
October 1, 2012
Rate Per ERU
$3.00
$4.00
$4.17
$4.35
$4.54
$6.13
$7.16
$8.01
$8.65
$9.35
$9.71
$10.51
$11.14
$11.80
$12.51
$13.26
$13.59
Single- family homes, multifamily units, condominium units, apartments and mobile homes are
rated as one ERU per dwelling unit. Nonresidential property is charged at the rate of 1,830
square feet of impervious area per ERU.
HISTORICAL NET REVENUES
Fiscal Years Ended September 30,
2006 2007 2008 2009 2010
Net Operating Revenues (Excluding
Depreciation) $5,103,551 $5,688,934 $5,681,465 $5,750,323 $7,471,323
Interest Income and other Non -
Operating Revenues (Expenses) 465,203 608,038 550,935 796,769 1,045,752
Total Net Revenues $5,568,754 $6,296,972 $6,232,400 $6,547,092 $8,517,075
Maximum Annual Debt Service $2,889,994 $2,889,994 $2,889,994 $2,889,994 $2,889,994
Coverage 1.93 2.19 2.16 2.27 2.95
124
Continuing Disclosure
Improvement Revenue Refunding Bonds, Series 2001
Supplementary Information
Historical Debt Service Coverage
Fiscal Year
Pledged Revenues Maximum Annual Debt Service
(1) Debt Service Coverage
2006 $ 18,117,728 $ 861,000 21.04
2007 18,193,910 861,000 21.13
2008 18,279,990 1,919,221 9.52
2009 18,987,205 1,835,664 10.34
2010 19,680,291 861,000 22.86
(1) The Improvement Revenue Refunding Bonds, Series 2001, were issued October 15, 2001 in the amount of
$11,470,000. They were secured by a lien upon and a pledge of the Public Service Tax pursuant to Section 166.231,
Florida Statutes as amended. Effective October 1, 2001, the Florida Legislature repealed the public service tax on
telecommunications created per Section 166.231(9), Florida Statutes, and created a simplified tax structure for
communications services pursuant to Chapter 2000 -260, Laws of Florida. To the extent that the Public Service Tax
receipts derived by the City pursuant to Section 166.231(9), Florida Statutes, are eliminated as a result of this new tax,
all of the revenues received by the City pursuant to the new Communications Services Tax shall be deemed to replace
the Public Service Tax receipts so eliminated. Consequently the pledged revenues include both public service taxes and
communications services taxes effective October 1, 2001. Improvement Revenue Bonds, Series 2008, were issued
August 12, 2008, in the amount of $12,900,000. They were secured by a lien upon and a pledge of the public service tax
pursuant to Chapter 166, Part 11, Florida Statutes. The Improvement Revenue Bonds, Series 2008 were fully redeemed
on March 30, 2010.
125
City of Clearwater, Florida
Fire Services Program
Supplementary Information
Pursuant to agreements between the City of Clearwater, the Pinellas County Fire Authority and the Pinellas
County Emergency Medical Services Authority, the City has provided fire and emergency medical services to the
respective authorities. With respect to fire services, the services are provided for the benefit of properties
located outside the corporate limits of the City, but within a designated service area. Emergency medical
services are provided for the benefit of persons residing both inside and outside the corporate limits of the City,
based on the Authority's nearest unit dispatch policy.
With respect to the Fire Services Program, a budget was prepared by Fire Department personnel covering
proposed expenditures for fiscal year ending September 30, 2010, for the Fire Department as a whole. Since the
funding for the Emergency Medical Services Program is based on the level fixed in prior years, the Fire Services
Program budget is essentially the residual obtained by deducting the approved level of funding for the
Emergency Medical Services Program from the budgeted amounts included in the total Fire Department budget.
This budget was submitted to, and duly approved by, the relevant Authority prior to the commencement of the
fiscal year. Income received from Pinellas County Fire Protection Authority and valid program expenditures for
the Fire Services Program for the fiscal year ended September 30, 2010 are summarized below.
Total Revenue Received from Pinellas County Fire Protection Authority $ 2,125,543
Total Fire Service Expenditures for Fiscal Year Ended September 30, 2010 $ 18,337,837
The Fire Services Program does not currently utilize an equipment reserve.
126
CITY OF CI FARWATFR, Fl ORI[)A
STATISTICAI SFCTIOI\j
This section of the City's CAFR presents detailed information as a context for understanding what the
information in the financial statements, note disclosures, and required supplementary information say
about the City's overall financial health. This information has not been audited by the independent
auditor.
Financial Trends
These schedules contain trend information to help the reader understand how the City's financial
performance and well -being changed over time.
Schedule 1
Schedule 2
Schedule 2a
Schedule 3
Schedule 4
Revenue Capacity
Net Assets by Component
Changes in Net Assets
Program Revenues by Function /Program
Fund Balances of Governmental Funds
Changes in Fund Balances of Governmental Funds
These schedules contain information to help the reader assess the City's significant local revenue,
the property tax.
Schedule 5
Schedule 6
Schedule 7
Schedule 8a
Schedule 8b
Debt Capacity
Assessed Value and Estimated Actual Value of Taxable Property
Direct and Overlapping Property Tax Rates
Property Tax Levies and Collections
Principal Real Property Taxpayers
Principal Personal Property Taxpayers
These schedules present information to help the reader assess the affordability of the City's current
levels of outstanding debt, and the City's ability to issue additional debt in the future.
Schedule 9
Schedule 10
Schedule 11
Schedule 12
Schedule 13
Ratios of Outstanding Debt by Type
Ratios of General Bonded Debt Outstanding
Direct and Overlapping Governmental Activities Debt
Legal Debt Margin Information
Pledged- Revenue Coverage
127
CITY OF CI FARWATFR, Fl ORIDA
STATISTICAL SFCTION (CONTINLJFD)
Economic and Demographic Information
These schedules offer economic and demographic indicators to help the reader understand the
environment within which the City's financial activities take place.
Schedule 14
Schedule 15
Operating Information
Demographic and Economic Statistics
Principal Employers
These schedules contain service and infrastructure data to help the reader understand how the
information in the City's financial report relates to the services the City provides and the activities it
performs.
Schedule 16
Schedule 17
Schedule 18
Full -time Equivalent City Government Employees by Function /Program
Operating Indicators by Function /Program
Capital Assets Statistics by Function /Program
Sources: Unless otherwise noted, the information in this section is derived from the City's
comprehensive annual financial reports for the relevant year The City implemented the new reporting
model per GASB 34 in the fiscal year ended September 30, 2002.
128
• • - i • i • • • • • • • = I i • • •
Schedule 1
City of Clearwater, Florida
Net Assets by Component,
Last Nine Fiscal Years
(accrual basis of accounting)
Fiscal Year
(amounts in thousands)
2442 244a 2444 244.5 244a 2442 2Q4$ 24113 2414
primary Government
Governmental activities
Invested in capital assets, net of related debt a $ 60,970 $ 103,015 $ 133,711 $ 143,505 $ 182,474 $ 205,079 $ 218,384 $ 240,550 $ 249,043
Restricted 63,795 53,939 50,801 34,668 41,204 41,543 39,020 42,681 36,871
Unrestricted 67,099 62,599 61,163 92,739 100,234 108,262 114,247 103,556 106,094
Total governmental activities net assets $ 191,864 $ 219,553 $ 245,675 $ 270,912 $ 323,912 $ 354,884 $ 371,651 $ 386,787 $ 392,008
CO Business -type activities
Invested in capital assets, net of related debt $ 86,679 $ 105,824 $ 136,964 $ 146,476 $ 156,728 $ 164,246 $ 170,735 $ 158,129 $ 165,704
Restricted 38,382 33,413 37,108 35,354 35,054 35,775 39,635 41,333 44,332
Unrestricted 93,847 90,769 67,723 71,655 77,435 84,021 83,681 120,461 126,204
Total business -type activities net assets $ 218,908 $ 230,006 $ 241,795 $ 253,485 $ 269,217 $ 284,042 $ 294,051 $ 319,923 $ 336,240
Primary government
Invested in capital assets, net of related debt $ 147,649 $ 208,839 $ 270,675 $ 289,981 $ 339,202 $ 369,325 $ 389,119 $ 398,679 $ 414,747
Restricted 102,177 87,352 87,909 70,022 76,258 77,318 78,655 84,014 81,203
Unrestricted 160,946 153,368 128,886 164,394 177,669 192,283 197,928 224,017 232,298
Total primary government net assets $ 410,772 $ 449,559 $ 487,470 $ 524,397 $ 593,129 $ 638,926 $ 665,702 $ 706,710 $ 728,248
a Fiscal 2003 and 2004 increases in governmental activities invested in net assets, net of related debt were due to the construction of a spring training community sports
complex ($28.9 million), a new main library ($17.2 million), donation of a recreation center complex ($5.8 million) and construction of two new fire stations ($3.6 million) over
the two -year period. The fiscal 2006 increase was due to the implementation of the retroactive infrastructure component of GASB Statement #34, resulting in the addition of
$36.3 million of governmental activities capital assets.
Note: The City began to report accrual information when it implemented GASB Statement 34 in fiscal year 2002.
City of Clearwater, Florida
Changes in Net Assets
Last Nine Fiscal Years
(accrual basis of accounting)
Page 1 of 3
Schedule 2
Fiscal Year
(amounts in thousands)
Expenses 2002 2003 2004 2005 2006 2007 2008 2009 2010
Governmental activities:
General government $ 11,647 $ 11,353 $ 11,772 $ 11,945 $ 13,203 $ 13,169 $ 14,342 $ 13,515 $ 15,966
Public safety 45,136 47,429 51,454 56,456 60,178 68,636 66,582 64,977 69,457
Physical environment 2,886 2,271 2,684 2,826 3,098 3,027 2,730 4,266 4,941
Transportation 10,120 8,878 12,510 12,001 13,898 13,694 12,322 9,595 13,760
Economic environment 3,231 4,288 3,225 3,395 3,321 3,142 4,534 3,924 4,155
Human services 555 571 555 530 444 448 440 402 97
o Culture and recreation 22,231 22,094 25,402 28,875 32,636 32,872 37,688 28,740 30,610
Interest on long -term debt 2,963 3,284 3,013 2,699 2,373 2,248 1,998 1,850 1,446
Total governmental activities expenses 98,769 100,168 110,615 118,727 129,151 137,236 140,636 127,269 140,432
Business -type activities:
Water and sewer utility 37,470 40,825 41,995 43,852 48,592 49,840 52,015 54,520 57,229
Gas utility 23,574 26,638 29,152 33,394 36,947 33,579 35,944 29,285 31,200
Solid waste utility 14,398 14,232 15,096 15,615 16,013 16,172 16,036 14,801 15,618
Stormwater utility 5,459 7,022 8,250 8,768 9,013 9,465 11,070 11,775 10,937
Recycling 2,084 2,165 2,388 2,574 2,579 2,895 3,207 2,518 2,759
Marine 2,848 3,060 3,249 3,801 4,303 4,366 4,696 4,025 3,868
Aviation 336 211 299 350 468 382 417 743 388
Parking system 3,075 3,281 3,617 3,846 3,976 3,427 3,521 3,752 4,302
Harborview center 2,714 2,525 2,418 2,552 2,618 2,664 2,800 2,345 984
Clearwater Harbor Marina - - - - - - 23 474 473
Total business -type activities expenses 91,958 99,959 106,464 114,752 124,509 122,790 129,729 124,238 127,758
Total primary government expenses $ 190,727 $ 200,127 $ 217,079 $ 233,479 $ 253,660 $ 260,026 $ 270,365 $ 251,507 $ 268,190
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Page 2 of 3
Program Revenues
Charges for services:
General governments b $ 11,741 $ 12,268 $ 12,961 $ 13,585 $ 14,628 $ 14,508 $ 21,639 $ 21,679 $ 21,484
Public safety 7,747 7,960 7,742 7,500 8,222 8,444 9,803 10,291 8,966
Physical environment 93 180 76 119 150 123 91 249 331
Transportation 59 126 159 163 235 261 194 397 857
Economic environment 124 91 87 164 110 107 108 211 124
Human services - 6 - - - -
Culture and recreation 3,070 3,191 4,344 4,753 5,296 5,574 5,318 5,334 5,174
w - • Operating grants and contributions 6,224 8,267 6,605 6,273 7,181 9,687 9,123 8,542 7,561
Capital grants and contributions 9,787 5,207 3,129 15,058 3,405 11,748 7,632 3,169 1,315
Total governmental activities 38,845 37,296 35,103 47,615 39,227 50,452 53,908 49,872 45,812
Schedule 2 (continued)
City of Clearwater, Florida
Changes in Net Assets
Last Nine Fiscal Years
(accrual basis of accounting)
Fiscal Year
(amounts in thousands)
2002 2003 2004 2005 2006 2007 2008 2009 2010
Business -type activities:
Charges for services:
Water and sewer utility 37,739 39,207 43,143 45,306 49,159 50,381 52,111 53,965 55,801
Gas utility 26,890 30,064 33,001 37,469 43,160 38,906 40,902 39,079 36,622
Solid waste utility 16,090 15,960 16,403 16,541 16,816 17,301 17,512 17,847 18,422
Stormwater utility 6,767 8,485 9,526 10,319 11,138 11,885 12,770 13,493 14,717
Recycling 2,171 2,427 2,649 2,784 2,740 3,204 3,411 2,227 2,695
Marine 2,735 2,949 3,072 3,721 4,075 4,323 4,798 4,031 4,064
Aviation 144 176 187 205 213 224 227 216 332
Parking system 4,097 4,003 4,418 4,752 4,981 4,655 4,166 5,007 4,358
Harborview center 1,872 1,661 1,654 1,646 1,842 1,846 2,032 1,641 440
Clearwater Harbor Marina - - - - - 50 44
Operating grants and contributions - 14 420 59 59 83 83 83 187
Capital grants and contributions 4,301 9,406 5,591 6,138 6,639 6,382 1,086 2,609 11,060
Total business -type activities 102,806 114,352 120,064 128,940 140,822 139,190 139,098 140,248 148,742
Total primary government $ 141,651 $ 151,648 $ 155,167 $ 176,555 $ 180,049 $ 189,642 $ 193,006 $ 190,120 $ 194,554
w
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Page 3of3
Net (Expenses) / Revenue
Governmental activities
Business -type activities
Total primary government net (expense) / revenue
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes
Property
Sales
Franchise a
Utility
Communications services
Other taxes b
Investment earnings
Miscellaneous
Special items `
Transfers
Total governmental activities
Business -type activities:
Investment earnings
Transfers
Total business -type activities
Schedule 2 (continued)
City of Clearwater, Florida
Changes in Net Assets
Last Nine Fiscal Years
(accrual basis of accounting)
Fiscal Year
(amounts in thousands)
2002 2003 2005 2006 2007 2008 2009 2012
$ (59,924) $ (62,872) $ (75,512) $ (71,112) $ (89,924) $ (86,784)
10,848 14,393 13,600 14,188 16,313 16,400
$ (49,076) $ (48,479) $ (61,912) $ (56,924) $ (73,611) $ (70,384)
$ (86,728) $ (77,397)
9,369 16,010
$ (77,359) $ (61,387)
$ (94,620)
20,984
$ (73,636)
$ 30,322 $ 33,927 $ 37,157 $ 41,588 $ 48,076 $ 53,717 $ 50,347 $ 46,893 $ 44,040
14,664 14,529 15,263 16,351 17,155 16,079 15,675 13,850 13,253
7,087 7,140 7,505 8,226 9,435 9,505 - - -
10,402 10,363 10,237 10,611 11,264 11,410 11,533 12,021 13,574
7,870 7,019 6,790 6,883 6,854 6,784 7,316 6,398 6,107
4,294 3,974 4,435 5,183 5,523 5,779 8,154 7,581 7,773
4,859 2,188 3,231 2,648 5,352 7,402 5,837 8,635 5,015
213 168 758 151 396 131 437 113 128
5,810 10,047 - -
376 5,443 4,515 4,707 3,658 6,948 4,196 (2,958) 9,951
80,087 90,561 99,938 96,348 107,713 117,755 103,495 92,533 99,841
3,083 2,148 1,987 2,210 4,341 5,373 4,313 6,904
(376) (5,443) (4,515) (4,707) (3,658) (6,948) (4,196) 2,958
2,707 (3,295) (2,528) (2,497) 683 (1,575) 117 9,862
5,284
(9,951)
(4,667)
Total primary government $ 82,794 $ 87,266 $ 97,410 $ 93,851 $108,396 $116,180 $103,612 $102,395 $ 95,174
Change in Net Assets
Governmental activities
Business -type activities
Total primary government change in net assets
$ 20,163
13,555
$ 33,718
$ 27,689
11,098
$ 38,787
$ 24,426
11,072
$ 35,498
$ 25,236
11,691
$ 36,927
$ 17,789
16,996
$ 34,785
$ 30,971
14,825
$ 45,796
$ 16,767
9,486
$ 26,253
$ 15,136
25,872
$ 41,008
$ 5,221
16,317
$ 21,538
a Franchise fees reclassified from General Revenues to Charges for Services effective with fiscal 2008, per guidance
from State of Florida, Department of Financial Services, Bureau of Local Government.
b Occupational licenses reclassified from Charges for Services to Local Business Tax (Other Taxes) effective with
fiscal 2008, per guidance from State of Florida, Department of Financial Services, Bureau of Local Government.
Special items for fiscal 2003 and 2004 consisted of a donated recreation complex and a cash donation for a new
Spring Training sports complex, respectively.
Note: The City began to report accrual information when it implemented GASB Statement 34 in fiscal year 2002.
r••• -- MO OM I• NM NM A r r I OM = MN
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Schedule 2a
City of Clearwater, Florida
Program Revenues by Function /Program
Last Nine Fiscal Years
(accrual basis of accounting)
Fiscal Year
(amounts in thousands)
2002 2003 2004 2005 2006 2007 2008 2009 2010
Function /Program
Governmental activities:
General government $ 11,843 $ 12,340 $ 13,090 $ 13,605 $ 14,697 $ 14,514 $ 21,640 b $ 21,681 $ 21,512
Public safety 9,046 9,661 9,009 9,207 9,275 11,763 12,784 13,284 12,309
Physical environment 1,052 1,118 796 448 1,274 704 695 304 360
Transportation 6,261 3,982 2,003 14,056 a 2,300 10,491 6,628 1,852 2,024
Economic environment 2,802 4,028 2,629 2,425 2,708 3,298 2,844 3,327 1,982
Human services 6
Culture and recreation 7,841 6,161 7,576 7,874 8,973 9,682 9,317 9,424 7,625
Subtotal governmental activities 38,845 37,296 35,103 47,615 39,227 50,452 53,908 49,872 45,812
Business -type activities:
Water and sewer utility 40,051 43,120 46,357 47,656 52,264 56,071 52,807 55,291 63,426
w Gas utility 26,890 30,064 33,001 37,469 43,160 38,906 40,902 39,078 36,672
Solid waste utility 16,090 15,974 16,823 16,541 16,816 17,301 17,512 17,847 18,422
Stormwater utility 8,262 13,411 11,158 14,061 14,343 12,559 12,941 14,478 15,682
Recycling 2,171 2,427 2,649 2,843 2,799 3,287 3,493 2,310 2,779
Marine 2,735 2,953 3,750 3,721 4,128 4,323 4,810 4,031 4,064
Aviation 638 739 253 251 489 242 335 365 491
Parking system 4,097 4,003 4,418 4,752 4,981 4,655 4,266 5,157 4,364
Harborview center 1,872 1,661 1,655 1,646 1,842 1,846 2,032 1,641 440
Clearwater Harbor Marina - - - - - - 50 2,402
Subtotal business -type activities 102,806 114,352 120,064 128,940 140,822 139,190 139,098 140,248 148,742
Total primary government $ 141,651 $ 151,648 $ 155,167 $ 176,555 $ 180,049 $ 189,642 $ 193,006 $ 190,120 $ 194,554
Note: The City began to report accrual information when it implemented GASB Statement 34 in fiscal
year 2002.
a In 2005, the City received a $10 million reimbursement grant from the Florida Department of Revenue
for construction of the new Clearwater Memorial Causeway Bridge.
b Franchise fees reclassified from General Revenues to Charges for Services effective with fiscal 2008, per guidance
from State of Florida, Department of Financial Services, Bureau of Local Government.
Schedule 3
City of Clearwater, Florida
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
(amounts in thousands)
2041 24!22 2443 24174 2445 2441: 209Z 2421 2021 241Q
General Fund
Reserved $ 1,066 $ 3,019 $ 2,618 $ 2,762 $ 3,064 $ 2,941 $ 3,476 $ 3,500 $ 3,168 $ 1,164
Unreserved 11,806 12,684 12,075 13,077 15,575 21,479 23,580 17,564 19,171 22,903
Total General Fund $ 12,872 $ 15,703 $ 14,693 $ 15,839 $ 18,639 $ 24,420 $ 27,056 $ 21,064 $ 22,339 $ 24,067
All Other Governmental Funds
a Reserved $ 9,288 $ 50,531 b $ 35,555 $ 29,421 $ 30,040 $ 35,363 $ 48,722 $ 36,641 $ 37,259 $ 26,650
Unreserved, reported in:
Special revenue funds 14,778 11,336 15,199 15,325 17,340 19,608 18,656 16,426 16,899 17,264
Debt service funds 648 1,802 30 28 2,248 64 90 113 136 7,726
Capital project funds 42,560 a 23,481 22,247 17,796 25,462 27,746 19,225 40,685 C 36,757 36,240
Total all other governmental funds $ 67,274 $ 87,150 $ 73,031 $ 62,570 $ 75,090 $ 82,781 $ 86,693 $ 93,865 $ 91,051 $ 87,880
a The fiscal 2001 unreserved fund balance increase for capital projects is primarily due to $46.9 million of bond proceeds from the 2001 Infrastructure Sales Tax
Revenue Bonds, partially offset by $24.0 million of related capital outlay expenditures.
b The increase in fiscal 2002 reserved fund balance is primarily due to an increase in fund balance reserved for encumbrances from $7.1 million in fiscal 2001 to
$35.0 million in fiscal 2002, as a result of major construction projects including the new main library and new Memorial Causeway Bridge. Also contributing was
a $10.5 million increase in fund balance reserved for advances and notes, related to interfund loans to the parking fund for a proposed beach parking garage,
along with increased reserves for housing assistance mortgage note receivables.
The fiscal 2008 unreserved fund balance increase for capital projects is due to funding of capital projects in advance of project expenditures.
MI I MI ION r - ell M Mill MI Mil r I M MI
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Schedule 4
City of Clearwater, Florida
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
(amounts in thousands)
Revenues 2441 2002 2003 24124 MI5 201)0 2007 200 2049 2010
Total Governmental Funds:
Property taxes $ 27,712 $ 30,323 $ 33,927 $ 37,157 $ 41,588 $ 48,076 $ 53,717 $ 50,347 $ 46,579 $ 44,097
Utility taxes
15,486 486 10, 402 10,363 363 10, 237 10, 611 11,264 264 11,410
11,533 533 12,020 13,574
Sales taxes 8,385 8,458 8,662 9,120 9,978 10,705 9,931 9,863 8,574 7,987
Communications services taxes ° 7,870 7,019 6,790 6,883 6,854 6,784 6,747 6,966 6,107
Other taxes 2,709 2,667 2,780 2,891 3,002 3,016 3,015 3,669 4,167 3,613
Franchise fees 8,701 7,087 7,140 7,505 8,226 9,435 9,505 9,254 10,204 10,540
Licenses, permits, and fees 2,604 2,232 2,908 3,168 3,656 4,780 4,441 2,719 1,918 1,766
Charges for services 9,379 10,429 10,471 12,198 12,570 14,669 14,806 14,895 14,933 14,803
Fines and forfeitures 2,015 2,264 2,078 1,742 1,263 1,557 1,401 1,298 1,478 1,101
Intergovernmental revenues 23,809 26,969 25,070 22,089 36,704 25,407 34,622 31,473 27,972 25,400
Investment earnings 4,021 3,810 2,309 2,491 1,756 3,784 5,400 4,101 5,768 3,360
Miscellaneous 2,954 4,966 3,097 3,257 2,813 2,089 4,173 4,961 1,880 1,709
Total revenues 107,775 117,477 115,824 118,645 139,050 141,636 159,205 150,860 142,459 134,057
Expenditures
Total Governmental Funds:
Current:
General government 9,486 10,546 10,586 11,189 11,328 12,590 13,357 14,170 13,633 15,676
Public safety 42,442 45,921 48,162 50,303 55,405 57,265 65,099 64,636 64,242 64,734
Physical environment 2,222 2,839 2,289 2,498 2,737 3,035 2,964 2,673 4,085 3,777
co Transportation 5,402 8,941 6,673 9,702 9,604 10,267 11,162 9,950 7,768 9,128
Economic environment 2,182 3,268 4,307 3,239 3,392 3,324 3,175 4,213 3,166 3,089
Human services 700 566 576 562 530 442 453 437 405 100
Culture and recreation 18,302 20,740 22,252 24,228 25,011 28,544 29,939 30,317 27,114 25,883
Debt service:
Principal 1,468 1,751 6,921 7,483 7,345 7,257 7,192 7,414 7,825 11,670
Interest & issuance costs 789 2,820 3,146 2,922 2,610 3,029 ` 1,999 1,728 1,617 1,339
Capital outlay 42,677 b 19,594 32,272 19,859 10,252 9,834 24,126 21,970 22,312 10,145
Total expenditures 125,670 116,986 137,184 131,985 128,214 135,587 159,466 157,508 152,167 145,541
Excess (deficiency) of revenues
over (under) expenditures (17,895) 491 (21,360) (13,340) 10,836 6,049 (261) (6,648) (9,708) (11,484)
Other Financing Sources (Uses)
Total Governmental Funds:
Transfers in 27,636 23,324 29,241 29,854 28,205 35,258 47,334 42,481 38,956 52,388
Transfers out (21,768) (23,180) (24,586) (26,750) (24,160) (29,850) (40,779) (39,023) (31,312) (42,348)
Sale of capital assets 925 720 120
Land held for resale from general government 1,000
Long term debt issued 49,379 15,363 651 201 439 895 254 4,370 525
Proceeds of refunding bonds 11,345
Premium on revenue bonds issued 481
Payment to refunded bond escrow agent (10,271)
Total other financing sources (uses) 55,247 17,062 6,231 4,025 4,484 7,423 6,809 7,828 8,169 10,040
Net Change in Fund Balances $ 37,352 $ 17,553 $ (15,129) $ (9,315) $ 15,320 $ 13,472 $ 6,548 $ 1,180 $ (1,539) $ (1,444)
Debt service as a percentage of noncapital expenditures 2.7% 4.7% 10.5% 14.1% 8.7% 8.5% 6.9% 6.8% 7.4% 9.6%
a Effective October 1, 2001, the Florida Legislature repealed the public service utility tax on telecommunications and created a simplified tax structure for communications services.
b The increase in fiscal 2001 capital outlay expenditures is primarily due to construction expenditures for the new main library and the new Memorial Causeway bridge.
The increase in fiscal 2006 interest and issuance costs is due to $742 thousand of arbitrage rebate on the 2001 Infrastructure Sales Tax revenue bonds.
Schedule 5
City of Clearwater, Florida
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(in thousands of dollars)
Assessed Values 1.2
Government Homestead Total Estimated Assessed
and Assessment Less: Taxable Total Actual Value as a
Fiscal Residential Commercial Industrial Institutional Personal Other Cap Tax Exempt Assessed Direct Taxable Percentage of
Year Property Property Property Property Property Property Differentialb Property Value Rate` Value Actual Value
2001 $ 4,038,672 $ 1,319,861 $ 94,341 $ 942,290 $ 662,240 $ 50,706 $ 247,856 $ 1,651,467 $ 5,208,787 5.5032 $ 6,127,985 85.0%
2002 4,612,494 1,397,947 99,579 995,983 699,503 53,481 435,066 1,735,495 5,688,426 5.5032 6,692,266 85.0%
w 2003 5,290,897 1,450,805 109,852 1,018,670 629,591 56,319 722,765 1,728,291 6,105,078 5.7530 7,182,445 85.0%
rn
2004 6,043,611 1,537,612 116,822 1,083,186 616,883 63,746 966,830 1,801,765 6,693,265 5.7530 7,874,429 85.0%
2005 6,923,863 1,714,684 131,518 1,201,463 604,747 62,339 1,246,779 1,923,108 7,468,727 5.7530 8,786,738 85.0%
2006 8,325,134 1,902,627 153,035 1,329,219 605,102 70,665 1,690,208 2,045,343 8,650,231 5.7530 10,176,742 85.0%
2007 10,967,910 2,294,492 178,987 1,499,434 637,308 67,478 2,767,035 2,222,329 10,656,245 5.2088 12,536,759 85.0%
2008 11,359,752 2,385,943 187,557 1,500,633 640,387 72,913 2,691,298 2,307,132 11,148,755 4.6777 13,116,182 85.0%
2009 9,965,589 2,353,563 192,940 1,586,882 645,460 89,686 1,721,773 2,951,357 10,160,990 4.7254 11,954,106 85.0%
2010 8,163,897 2,346,462 185,353 1,156,811 657,933 95,259 907,087 2,878,136 8,820,492 5.1550 10,377,049 85.0%
Properties are assessed at approximately 85% of market value to reflect cost of sales, personal property included in market value, etc.
b Florida Statutes, 193.155, provides for an annual cap on assessment increases for "Homestead properties" (properties qualifying for Homestead exemption).
The cap is the lower of 3% of the assessed value of the property or the percentage change in the Consumer Price Index for All Urban Consumers.
` Rate is per $1,000 of assessed value
MN I- r NM P M- r .N OM 11111111 r- MO NM MI I-
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Schedule 6
City of Clearwater, Florida
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(rate per $1,000 of assessed value)
City Direct Rates Overlapping Rates
Pinellas Pinellas Emergency Downtown
Fiscal GOB Debt Total Pinellas County Transit Medical Other Development
Year Operating Service Direct County Schools District Services Districts Board a
2001 5.5032 0.0000 5.5032 6.0040 8.4330 0.6501 0.7470 1.6562 1.0000
2002 5.5032 0.0000 5.5032 6.1410 8.4870 0.6501 0.6600 1.6562 1.0000
2003 5.7530 0.0000 5.7530 6.1410 8.4490 0.6319 0.6600 1.6562 1.0000
2004 5.7530 0.0000 5.7530 6.1410 8.2430 0.6319 0.6600 1.6562 1.0000
2005 5.7530 0.0000 5.7530 6.1410 8.1220 0.6377 0.6600 1.6557 1.0000
2006 5.7530 0.0000 5.7530 6.1410 8.3900 0.6377 0.6600 1.6555 1.0000
2007 5.2088 0.0000 5.2088 5.4700 8.2100 0.6074 0.6300 1.6378 1.0000
2008 4.6777 0.0000 4.6777 4.8730 7.7310 0.5601 0.5832 1.5121 0.9651
2009 4.7254 0.0000 4.7254 4.8108 8.0610 0.5601 0.5832 1.5551 b 0.9651
2010 5.1550 0.0000 5.1550 4.8108 8.3460 0.5601 0.5832 1.5106 b 0.9651
Source: Pinellas County Property Appraiser
a A separate taxing district established by referendum which affects only downtown properties.
Other includes Pinellas County Planning Council 0.0125; Juvenile Welfare Board 0.7915;
SW Florida Water Management District 0.3866; Pinellas Anclote River Basin 0.3200.
137
Schedule 7
City of Clearwater, Florida
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the Fiscal
Year of the Levy Total Collections to Date
Collections in
Fiscal Taxes Levied for Percentage Subsequent Percentage
Year the Fiscal Year Amount of Levy Years Amount of Levy
2001 $ 28,664,112 $ 28,567,429 99.66% $ 130,632 $ 28,698,061 100.12%
2002 31,303,900 31,204,025 99.68 91,548 31,295,573 99.97
2003 35,153,114 35,038,555 99.67 94,574 35,133,129 99.94
2004 38,430,718 38,277,689 99.60 124,999 38,402,688 99.93
2005 43,001,524 42,905,336 99.78 118,601 43,023,937 100.05
2006 49,719,539 49,598,439 99.76 48,222 49,646,661 99.85
2007 55,514,622 55,423,836 99.84 131,471 55,555,307 100.07
2008 52,134,689 51,926,581 99.60 173,529 52,100,110 99.93
2009 48,093,238 47,964,265 99.73 47,964,265 99.73
2010 45,553,661 0.00 0.00
Note 1: Discounts are allowed for early payment: 4% for November, 3% for December, 2% for January, and 1% for
February. No discount is allowed for payment in March. Penalties are assessed beginning in April.
Note 2: The County Tax Collector does not allocate delinquent taxes collected by the original tax year levied.
Consequently all collections of delinquent taxes are applied to the immediately prior tax year and, as a result, the
total collections -to -date percentage of the tax levy -to -date shown above may be greater than 100% of the tax levy for
a given year.
138
Taxpayer
REAL PROPERTY
Bel!weather Prop. LP Ltd.
Waters Edge One LLC
Taylor, John S. III
Centro NP Clearwater Mall
Sand Key Association Ltd.
Sandpearl Resort LLC
Grand Reserve Property Owner
628 East Cleveland St- Clearwater
Weingarten Nostat Inc.
W R I Countryside Centre LLC
Excel Realty Trust Inc
Branch Sunset Assoc, LTD
Clearwater Land Co.
Northwood Plaza
ZOM Bayside Arbors Ltd.
Walmart Stores, Inc.
Total
City of Clearwater, Florida
Principal Real Property Taxpayers,
Current Year and Nine Years Ago
2010
Taxable
Assessed
Value
$ 122,905,116
54,034,267
44,370,000
41,264,549
39, 500, 000
37,068,018
34,250,000
29,021,824
28,140,000
28, 000, 000
$ 458,553,774
Source: Pinellas County Property Appraiser
Percentage of
Total City
Taxable
Assessed
Rank Value
1 1.47%
2 0.65%
3 0.53%
4 0.00
5 0.00
6 0.44%
7 0.41%
8 0.35%
9 0.34%
10 0.33%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
5.48%
139
Schedule 8a
2001
Percentage of
Total City
Taxable Taxable
Assessed Assessed
Value Rank Value
$ 86,861,400 1 1.87%
24,352,900 4 0.52%
21,774,500 7 0.47%
25,528,600 2 0.55%
24,834,100 3
23,147,800 5
22,319,600 6
19, 966, 500 8
19,032,900 9
16,865,100 10
$ 284,683,400
0.53%
0.50%
0.48%
0.43%
0.41%
0.36%
6.12%
Schedule 8b
Taxpayer
PERSONAL PROPERTY
Progress Energy (1)
Verizon Florida LLC (2)
Verizon Florida LLC
Bright House Networks LLC (3)
Publix Super Market
Instrument Transformers
General Electric Credit Co
Sandpearl Resort LLC
Hilton Clearwater Beach Resort
Bausch & Lomb Inc
GTE Americast
Sheraton Sand Key
American Tool & Mold Inc.
Bank of America, NA
Burdines, Inc.
Total
Notes:
City of Clearwater, Florida
Principal Personal Property Taxpayers,
Current Year and Nine Years Ago
2010
Taxable
Assessed
Value
$ 68,280,191
35,696,855
23,765,434
19,952,300
10,570,676
7,295,717
6,894,224
6,376,216
6,019,563
5,004,831
$ 189,856,007
Rank
1
2
3
4
5
6
7
8
9
10
Percentage of
Total City
Taxable
Assessed
Value
2001
Taxable
Assessed
Value Rank
14.94% $ 50,758,160 3
7.81% 97,383,830 1
5.20%
4.36% 11,608,050 4
2.31%
1.60% 5,746,570 5
Percentage of
Total City
Taxable
Assessed
Value
9.21%
17.68%
2.11%
1.04%
3,532,060 7 0.64%
4,590,990 6 0.83%
65,409,300 2 11.87%
3,673,680 7 0.67%
2,896,410 8 0.53%
2,428,300 9 0.44%
2,402,630 10 0.44%
41.53% $ 250,429,980
(1) Progress Energy was Florida Power in 2000.
(2) Verizon Florida, Inc. was GTE in 2000.
(3) Bright House Networks was Time Warner Entertainment in 2000.
Source: Pinellas County Property Appraiser
140
1
1
1
1
1
1
1
1
1
45.46%
1
1
1
1
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Schedule 9
City of Clearwater, Florida
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts in thousands, except per capita)
Governmental Activities Business -Type Activities
Spring Training
General Public Service Sales Tax Facility Water /Sewer Gas Stormwater Public Service Total Percentage
Fiscal Obligation Tax Revenue Revenue Intergovern. Capital Revenue Revenue Revenue Tax Revenue Capital Primary of Personal Per
Year Bond Bond Bonds Revenue Bonds Leases J3onda Bonds Bonds Bonds Leases Government income (l) Caoita (a)
2001 $ $ 10,037 $ 46,445 $ $ 12,349 $ 74,186 $ 28,822 $ 7,317 $ 142 $1,645 $ 180,943 5.59% $ 1,657
2002 11,256 46,445 14,810 12,239 130,417 28,630 31,960 104 1,792 277,653 7.96% 2,531
2003 - 10,925 41,345 14,645 11,671 127,505 28,000 31,835 80 2,075 268,081 7.48% 2,436
_s 2004 - 10,590 36,075 14,185 10,672 123,690 28,040 45,695 55 2,358 271,360 7.37% 2,460
2005 10,241 30,615 13,720 9,891 119,441 27,755 45,755 29 2,330 259,777 6.98% 2,344
2006 - 9,885 24,955 13,245 11,047 141,524 26,930 44,830 1,906 274,322 6.87% 2,480
2007 9,565 19,080 12,755 10,840 136,955 23,015 43,845 1,366 257,421 6.12% 2,330
2008 13,000 12,975 12,255 10,560 132,290 18,240 42,830 9,135 932 252,217 5.52% 2,288
2009 12,545 6,620 11,740 9,230 190,415 17,470 41,780 9,135 660 299,595 6.41% 2,726
2010 8,540 11,210 8,279 185,730 16,695 40,700 630 271,784 5.86% 2,524
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(a) See Schedule 14 for personal income and population data. These ratios are calculated using personal income from two fiscal years prior, as noted on Schedule 14.
Schedule 10
City of Clearwater, Florida
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
(amounts in thousands, except per capita)
General Bonded Debt Outstanding
Percentage of
General Public Service Sales Tax Actual Taxable
Fiscal Obligation Tax Revenue Revenue Value of Per
Year Bonds Bonds Bonds Total Property (a) Capita (b)
2001 $ $ 10,179 $ 46,445 $ 56,624 0.92% $ 518
2002 11,360 46,445 57,805 0.86% 527
2003 11,005 41,345 52,350 0.73% 476
2004 10,645 36,075 46,720 0.59% 423
2005 10,270 30,615 40,885 0.47% 369
2006 9,885 24,955 34,840 0.34% 315
2007 9,565 19,080 28,645 0.23% 259
2008 13,000 12,975 25,975 0.20% 236
2009 12,545 6,620 19,165 0.16% 174
2010 8,540 8,540 0.08% 79
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(a) See Schedule 5 for property value data.
(b) Population data can be found in Schedule 14.
142
Schedule 11
City of Clearwater, Florida
Direct and Overlapping Governmental Activities Debt
As of September 30, 2010
(amounts in thousands)
Estimated
Estimated Share of
Debt Percentage Overlapping
Governmental Unit Outstanding Applicable a
Debt repaid with property taxes $ n/a $
Other debt
Pinellas County Capital Leases 31 13.7% 4
Pinellas County School District State Bonds b 30,000 13.7% 4,099
Subtotal, overlapping debt 4,103
City direct debt 28,029
Total direct and overlapping debt $ 32,132
Sources: Assessed value data used to estimate applicable percentages provided by Pinellas County Property Appraiser.
Debt outstanding data is provided by each respective governmental unit.
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents
and businesses of Clearwater. This process recognizes that, when considering the City's ability to issue and repay
Tong -term debt, the entire debt burden borne by the residents and businesses should be taken into account.
a The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable
percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is
within the City's boundaries and dividing it by each unit's total taxable assessed value.
b The School District State Bonds are secured by a pledge of the District's portion of the State - assessed motor vehicle
license tax. The State's full faith and credit is also pledged for the bonds.
143
Schedule 12
City of Clearwater, Florida
Legal Debt Margin Information
Last Ten Fiscal Years
(amounts in thousands)
Total Net Debt
Applicable
Total Net Debt to Limit
Fiscal Debt Applicable Legal as Percentage
Year Limit to Limit Debt Margin of Debt Limit
2001 $ 931,415 $ 167,938 $ 763,477 18.03%
2002 1,026,014 254,873 771,141 24.84
2003 1,116,032 243,518 872,514 21.82
2004 1,236,804 249,370 987,434 20.16
2005 1,395,730 236,154 1,159, 576 16.92
2006 1,631,179 247,706 1,383,473 15.19
2007 2,028,832 230,639 1,798,193 11.37
2008 2,128,847 224,224 1,904,623 10.53
2009 1,942,045 271,594 1,670,451 13.98
2010 1,672,462 248,800 1,423,662 14.88
Legal Debt Margin Calculation for Fiscal Year 2010:
Assessed valuation of non - exempt real estate
Debt Limit (20% of assessed valuation per City Charter)
Debt applicable to limit:
Revenue bonds $ 262,875
Capital leases 8,909
Less: Amount set aside for repayment
of bonded debt (22,984)
8,362,311
1,672,462
248,800
Legal debt margin $ 1,423,662
Note: Per City Charter, the City's indebtedness, to include revenue, refunding, and improvement bonds,
shall not exceed 20 percent of the current assessed valuation of all real property located in the City.
144
City of Clearwater, Florida
Pledged- Revenue Coverage
Last Ten Fiscal Years (®)
(amounts in thousands)
Page 1 of 2
Schedule 13
Less: Net
Fiscal Gross Operating Available Debt Service
Year Revenues Expenses Revenues Principal Interest Coverage
Infrastructure Sales Tax Bonds (b)
2001 $ 8,340 $ $ 8,340 $ $ - n/a
2002 8,458 8,458 1,984 4.26
2003 8,662 8,662 5,100 1,882 1.24
2004 9,120 9,120 5,270 1,674 1.31
2005 9,978 9,978 5,460 1,432 1.45
2006 10,704 10,704 5,660 1,896 (b) 1.42
2007 9,931 9,931 5,875 889 1.47
2008 9,863 9,863 6,105 641 1.46
2009 8,574 8,574 6,355 397 1.27
2010 7,987 7,987 6,620 132 1.18
Spring Training Facility Bonds (c)
2002 $ 1,148 $ - $ 1,148 $ $ - n/a
2003 1,115 1,115 165 629 1.40
2004 1,086 1,086 460 623 1.00
2005 1,098 1,098 465 614 1.02
2006 1,107 1,107 475 603 1.03
2007 1,112 1,112 490 591 1.03
2008 1,107 1,107 500 577 1.03
2009 1,104 1,104 515 561 1.03
2010 1,105 1,105 530 544 1.03
Public Service Tax/Improvement Revenue Bonds (d)
2001 $ 15,486 $ $ 15,486 $ 250 $ 613 17.94
2002 18,273 18,273 110 408 35.28
2003 17,381 17,381 355 506 20.19
2004 17,027 17,027 360 496 19.89
2005 17,493 17,493 375 485 20.34
2006 18,118 18,118 385 473 21.12
2007 18,194 18,194 320 464 23.21
2008 18,280 18,280 330 450 23.44
2009 18,987 18,987 340 438 24.40
2010 19,680 19,680 355 425 25.23
(a) Less than ten years of coverage are provided for the Spring Training Facility Revenue
bonds issued September 2002.
(b) Pledged revenues for the Infrastructure Sales Tax Revenue Bonds include the City's share of
revenues derived by Pinellas County, Florida, from the levy and collection of a one -cent
discretionary infrastructure sales surtax pursuant to Section 212.055(2), Florida Statutes, as
amended. Interest for 2006 includes arbitrage rebate of $742,000.
(c) Pledged revenues for the Spring Training Facility Revenue Bonds include payments received
from the State of Florida pursuant to Section 212.20, Florida Statutes, and payments from
Pinellas County, pursuant to an inter -local agreement dated December 1, 2000, along with
related interest earnings.
(d) Pledged revenues for the Improvement Revenue Refunding Bonds, issued October 2001, were
public service taxes. Effective October 1, 2001, the Florida Legislature repealed the public tax
on communications and created a replacement communications services tax. Consequently
the pledged revenues effective October 1, 2001, include both public service taxes and the new
communications services taxes.
145
Schedule 13 (continued)
City of Clearwater, Florida
Pledged- Revenue Coverage
Last Ten Fiscal Years (e)
(amounts in thousands)
Page 2 of 2
Less: Net
Fiscal Gross Operating Available Debt Service Maximum
Year Revenues Expenses Revenues Principal interest Coverage Coverage (a)
Water & Sewer Utility Revenue Bonds
2001 $ 39,486 $ 27,337 $ 12,149 $ 4,920 $ 1,359 1.93
2002 39,452 28,552 10,900 5,165 1,118 1.73
2003 40,243 29,611 10,632 5,430 3,334 1.21
2004 44,193 31,206 12,987 6,575 2,964 1.36
2005 46,379 32,243 14,136 7,000 2,892 1.43
2006 51,197 36,546 14,651 7,020 2,711 1.51
2007 52,815 37,109 15,706 7,115 3,588 1.47
2008 54,014 38,325 15,689 7,080 3,817 1.44
2009 56,952 36,305 20,647 7,195 3,773 1.88
2010 58,220 37,358 20,862 4,685 9,310 1.49
Gas Utility Revenue Bonds
2001 $ 31,212 $ 24,575 $ 6,637 $ 580 $ 1,519 3.16 3.05
2002 27,218 20,665 6,553 610 1,495 3.11 3.01
2003 30,373 23,729 6,644 630 1,470 3.16 3.05
2004 33,229 26,316 6,913 675 1,370 3.38 3.18
2005 37,797 30,584 7,213 770 1,228 3.61 3.35
2006 43,772 34,154 9,618 825 1,195 4.76 4.47
2007 39,756 30,483 9,273 855 1,162 4.60 4.31
2008 41,582 33,562 8,020 765 741 5.33 3.73
2009 39,992 26,813 13,179 770 730 8.79 6.13
2010 40,515 28,517 11,998 775 704 8.11 5.75
Stormwater Utility Revenue Bonds
2001 $ 5,323 $ 3,608 $ 1,715 $ 105 $ 400 3.40
2002 6,846 3,958 2,888 120 395 5.61
2003 8,660 4,727 3,933 125 1,104 3.20
2004 9,680 5,923 3,757 570 1,445 1.86
2005 10,523 5,754 4,769 580 1,830 1.98
2006 11,589 6,020 5,569 925 1,906 1.97
2007 12,458 6,161 6,297 985 1,874 2.20
2008 13,270 7,038 6,232 1,015 1,845 2.18
2009 14,231 7,684 6,547 1,050 1,814 2.29
2010 15,283 6,766 8,517 1,080 1,782 2.98
(a) Maximum debt service coverage is presented for continuing disclosure on the Gas System
Revenue Bonds and is based upon the maximum annual debt service for outstanding bonds
and parity bonds.
146
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Schedule 14
City of Clearwater, Florida
Demographic and Economic Statistics
Last Ten Fiscal Years
Personal
Income Per Capita Annual Average
(thousands of Personal Median School Unemployment
Year Population (a) dollars) Income (b) Age (c) Enrollment (d) Rate (e)
2001 109,231 $ 3,238,590 $ 29,649 43.0 16,293 2.7%
2002 109,719 3,487,309 31,784 43.0 17,047 3.9
2003 110,055 3,586,142 32,585 43.9 16,295 5.4
2004 110,325 3,680,552 33,361 44.0 16,323 4.7
2005 110,831 3,730,350 33,658 44.2 15,964 3.4
2006 110,602 4,117,712 37,230 44.2 15,696 2.9
2007 110,469 4,374,793 39,602 44.5 15,500 3.8
2008 110,251 4,650,167 42,178 44.5 15,482 5.5
2009 109,907 4,717,099 42,919 45 14,975 10.1
2010 107,685 4,637,347 43,064 45.3 14,704 12.4
(a) Source is the University of Florida, Bureau of Economic and Business Research: April 1, 2010 estimate
for current year and Florida Statistical Abstract for prior years.
(b) Data is from per capita personal income for Pinellas County for two years prior. Source is the University
of Florida, Bureau of Economic and Business Research, Florida Statistical Abstract.
(c) Data is for Pinellas County and for prior year. Source is the University of Florida, Bureau of Economic
and Business Research, Florida Statistical Abstract.
(d) Source of data is the Pinellas County School District.
(e) Source for fiscal years 2001 thru 2009 is the University of Florida, Bureau of Economic and Business
Research, Florida Statistical Abstract, Annual Averages of the indicated fiscal year. Source for fiscal 2010
is the US Dept of Labor, Bureau of Labor Statistics, Tampa Metro Area, average for year ended
September 2010.
Note: Data is the latest published annual data available for an unspecified point in each year, not specifically
September 30.
147
Schedule 15
City of Clearwater, Florida
Principal Employer ?,
Current Year and Nine Years Ago
Employer
2010 b 2001 c
Percentage Percentage
of Total of Total
County County
Employees Rank Employment Employees Rank Employment
Pinellas County School District 14,480 1 3.68%
Bay Pines VA Medical Center 3,417 2 0.87%
City of St. Petersburg 3,361 3 0.85%
Raymond James Financial 3,200 4 0.81 %
Pinellas County Board of County Commissioners d 2,786 5 0.71 %
Pinellas County Sheriff 2,714 6 0.69%
Tech Data Corp. 2,500 7 0.63%
Bayfront Medical Center 2,500 8 0.63%
All Children's Hospital 2,300 9 0.58%
St. Petersburg College 2,063 10 0.52%
Total Employment b 393,749
a Data is for Pinellas County. City data is not available.
b Source: Florida Research and Economic Database and Pinellas County Department of Economic Development.
• Data for 2001 is not available.
d Includes part-time personnel budgeted.
148
Schedule 16
City of Clearwater, Florida
Full -time Equivalent City Government Employees by Function /Program
Last Ten Fiscal Years
Full -time Equivalent Employees as of September 30
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Function /Program
General government 293.4 301.9 287.0 286.4 287.3 307.5 322.0 327.3 321.6 346.6
Public safety
Fire 186.5 199.7 200.0 202.0 202.0 215.0 221.0 212.0 212.0 211.0
Police 408.4 408.4 397.6 399.9 405.9 407.9 407.9 393.9 389.9 370.9
Physical environment 34.0 36.0 36.0 36.0 36.0 38.7 38.7 34.0 33.5 28.5
Transportation 67.0 72.0 73.0 73.0 71.0 74.3 74.3 69.0 67.5 57.5
Economic environment 52.0 52.3 64.3 67.3 67.1 69.5 66.5 64.5 62.5 11.0
Human services 4.0 4.0 4.0 4.0 3.0 3.0 3.0 3.0 2.0
Culture and recreation
Library 80.4 81.4 83.4 95.9 95.9 94.9 93.9 88.4 78.3 73.2
Parks & Rec 207.8 209.6 217.0 241.9 235.4 239.8 240.8 221.8 203.7 191.1
Water & Sewer Utility 158.0 166.0 170.0 169.0 169.0 175.0 175.0 168.0 169.0 164.0
Gas Utility 91.0 90.0 90.0 90.0 90.0 90.0 90.0 90.0 84.0 77.0
Solid Waste Utility 108.5 109.5 106.0 107.5 109.5 112.0 112.0 112.0 112.0 112.0
Stormwater Utility 38.0 38.0 40.0 40.0 46.0 46.0 46.0 46.0 47.0 46.0
Recycling 24.5 24.5 23.5 23.5 23.5 22.5 22.5 22.5 22.3 22.3
Marine 30.8 32.8 35.9 35.9 36.4 32.6 18.1 18.6 18.8 17.1
Clearwater Harbor Marina 5.6
Aviation 2.0 1.0 2.4 2.4 1.9 1.9 1.9 1.9 1.7 1.4
Parking System 9.6 9.6 14.8 20.8 20.8 20.8 20.7 20.7 20.7 31.6
Total 1,795.9 1,836.7 1,844.9 1,895.5 1,900.7 1,951.4 1,954.3 1,893.6 1,846.5 1,766.8
Source: City of Clearwater Office of Management and Budget
149
Schedule 17
Function /Program
General government
Planning
Commercial building permits issued
Residential building permits issued
Public safety
Police
Average officer training hours
Total volunteer training hours
City of Clearwater, Florida
Operating Indicators by Function/Program
Last Seven Fiscal Years'
Fiscal Year Ended Sept 30:
2004 2005 2006 2007 2008 2009 2010
1,697
1,638 1,693
6,474 7,474 6,751
1,850 1,498
1,240 1,303
5,325 4,769 4,270 4,788
141 8 150 8 55 105 78 83 51
1,229 1,017 932 1,023 1,001 735 39
Fire
Percentage of fire responses under 7.5 minutes 92% 91 % 90% 91 % 92% 96% 90%
Physical environment
Square feet of sidewalks repaired /constructed 53,528 37,039 48,458 88,028 64,201 47,076 53,157
Transportation
Miles of roadway resurfaced 13 12 10 14 10 10 5
Economic environment
Code enforcement cases brought to compliance 9,439 8,701 9,762 8,794 9,300 8,553 5,168
Human services
City employees that mentor in area schools 28 30 38 34 24 20 22
Culture and recreation
Library system
Library visits 854,004 975,547 902,135 979,544 976,987 864,350 860,044
Circulation 1,164,424 1,190, 577 1,193,637 1,121,480 1,181,184 1,161,059 1,147,428
Parks and recreation
Recreation center visitations
Athletic program visitations
Water and Sewer Utility
Water customers
Volume of water pumped (million gallons/day)
Sewer customers
Miles of sewers cleaned
Gas Utility
Number of customers
Solid Waste Utility
Solid waste tonnage collected and disposed
Stormwater Utility
Number of equivalent residential units
Recycling Utility
Marketable tons recycled
1,098,407 1,106,216 623,500 967,817 1,050,782 868,445 724,769
266,276 511,620 515,100 414,805 643,995 546,446 547,492
40,235 40,178 40,467 40,407 40,131 39,935 39,971
13.15 14.18 14.09 12.66 11.92 11.52 10.76
33,234 33,305 33,279 33,255 33,146 33,084 33,041
168 169 166 16 89 176 208
18,454 18,548 19,035 19,470 19,527 19,527 19,581
130,914 128,080 132,741 130,308 123,018 112,851 110,905
98,621 97,669 97,297 98,513 97,986 98,436 99,536
14,443 14,324 14,433 14,492 14,006 12,114 9,564
• Note: Only seven years of data are available. Fiscal 2010 is estimated if not available. No operating indicators
are available for marine, aviation, parking, Clearwater Harbor Marina, and Harborview Center functions.
8Training hours for fiscal 2004 and 2005 included grant- funded training for Homeland Security.
150
Function/Program
Public safety
Fire
Stations
Police
Stations
Transportation
Paved streets (miles)
Schedule 18
City of Clearwater, Florida
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
As of September 30
2401 2402 2413 2404 21:05 2446 21292 242 2449 2414
7 7 7 8 8 8 8 8 8 8
8 9 9 9 10 10 10 9 6 5
304 304 304 305 305 305 305 305 313 314
Culture and recreation
Library system
Volumes in collection (thousands) 534 546 557 557 570 565 590 601 606 606
Parks and recreation
Parks acreage 1,370 1,370 1,370 1,370 1,374 1,400 1,400 1,400 1,400 1,427
Recreational paths (miles) 7 7 7 7 13 14 16 16 16 16
Playgrounds 31 31 31 31 32 33 33 29 29 29
Baseball and softball fields 36 36 36 35 35 35 35 32 32 32
Soccer and football fields 17 17 17 17 24 25 25 20 20 20
Recreation centers 10 11 12 12 7 7 7 7 7 6
Water & Sewer Utility
Water mains (miles)
Sanitary sewer mains (miles)
Daily treatment capacity
(millions of gallons)
Gas Utility
Gas mains (miles)
Stormwater Utility
Stormwater mains (miles)
Marine
Boat slips
Clearwater Harbor Marina
Boat slips
Aviation
Airpark spaces
Parking system
Parking spaces
523 559 559 567 567 568 571 575 593 592
322 363 363 363 363 365 368 362 362 363
29 29 29 29 29 29 29 29 29 29
653 669 686 729 753 786 816 814 821 826
123 147 147 147 147 148 156 146 148 148
209 209 209 209 209 209 209 209 207 207
126
174 177 177 177 177 177 177 177 177 177
3,753 3,538 3,615 3,653 3,686 3,636 3,322 ° 3,382 3,497 3,297
°The decrease in parking spaces for fiscal 2007 was loss of beach parking due to Beach Walk construction.
Sources: Various city departments
Note: No capital asset indicators are available for the general government, physical environment, economic environment,
human services, solid waste, recycling, and Harborview Center functions.
151
Single Audit /
Grants Compliance
153
MHM
Mayer Hoffman McCann P.C.
An Independent CPA Firm
KRMT Tampa Bay Division
13577 Feather Sound Drive. Suite! 400
Clearwater, FL 33762
Phone: 727 572.1400 • 813.87 '1400
Fax: 727.571.1933
www. mhm- pc.com
Report on Internal Control Over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
Honorable Mayor and City Councilmembers
City of Clearwater, Florida:
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, each major fund, and the aggregate remaining fund information of the City of Clearwater,
Florida (the "City"), as of and for the year ended September 30, 2010, which collectively comprise the
City's basic financial statements, and have issued our report thereon dated March 30, 2011. We have also
audited the financial statements of each of the City's non -major governmental, non -major enterprise,
internal service and fiduciary funds presented in the accompanying combining and individual fund
statements and schedules as of and for the year ended September 30, 2010, as listed in the table of
contents. We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City's internal control over financial reporting as
a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal
control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the
City's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A significant deficiency is a control deficiency, or a
combination of control deficiencies, that adversely affects the City's ability to initiate, authorize, record,
process, or report financial data reliably in accordance with generally accepted accounting principles such
that there is a more than a remote likelihood that a misstatement of the City's financial statements that is
more than inconsequential will not be prevented or detected by the City's internal control. A material
weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a
reasonable possibility that a material misstatement of the entity's financial statements will not be
prevented, or detected and corrected on a timely basis.
155
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control over
financial reporting that might he deficiencies, significant deficiencies, or material weaknesses. We did
not identify any deficiencies in internal control over financial reporting that we consider to be material
weaknesses, as defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
We noted certain matters that we reported to management of the City in a separate letter dated March 30,
2011.
This report is intended solely for the information and use of the City Mayor, City Councilmemhers, City
Manager and City Management, the State of Florida Office of the Auditor General and applicable federal
and state awarding agencies and pass - through entities and is not intended to be and should not be used by
anyone other than these specified parties.
I, -mac . e.
March 30, 2011
Clearwater, Florida
156
MHM
Mayer Hoffman McCann P.C.
An Independent CPA Firm
KRMT Tampa Bay Division
13577 Feather Sound Drive, Suite 400
Clearwater. FL 33762
Phone: 727.572.1400 • 813.879.1400
Fax: 727.571.1933
www.mhm•pc.com
Report on Compliance With Regnirements Applicable to Each Major Federal Awards Protrram
and State Financial Assistance Project and on Internal Control Over Compliance
in Accordance With OMB Circular A -133 and Chapter 10.550, Rules of the Auditor General
Honorable Mayor and City Councilmembers
City of Clearwater, Florida:
Compliance
We have audited the compliance of the City of Clearwater, Florida, (the "City "), with the types of
compliance requirements described in the U. S. Office of Management and Budget (OMB) Circular A-
133 Compliance Supplement, and the requirements described in the State of Florida Department of
Financial Services State Projects Compliance Supplement, that are applicable to each of its major federal
programs and state financial assistance projects for the year ended September 30, 2010. The City's major
federal programs and state financial assistance projects are identified in the summary of auditors' results
section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the
requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs
and state financial assistance projects is the responsibility of the City's management. Our responsibility
is to express an opinion on the City's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; OMB Circular A -133, Audits of
States, Local Governments, and Non - Profit Organizations and Chapter 10.550, Rules of the Auditor
General. Those standards, OMB Circular A -133, and Chapter 10.550, Rules of the Auditor General,
require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance
with the types of compliance requirements referred to above that could have a direct and material effect
on a major federal program or state financial assistance project occurred. An audit includes examining,
on a test basis, evidence about the City's compliance with those requirements and performing such other
procedures as we considered necessary in the circumstances. We believe that our audit provides a
reasonable basis for our opinion. Our audit does not provide a legal determination of the City's
compliance with those requirements.
In our opinion, the City complied, in all material respects, with the requirements referred to above that are
applicable to each of its major federal programs and state financial assistancc projects for the year ended
September 30, 2010.
:, .
Internal Control Over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the requirements of laws, regulations, contracts, and grants applicable to federal
programs and state financial assistance projects. In planning and performing our audit, we considered the
City's internal control over compliance with the requirements that could have a direct and material effect
on a major federal program or state financial assistance project in order to determine our auditing
procedures for the purpose of expressing our opinion on compliance 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, but not for the purpose of expressing an opinion on the effectiveness of internal control
over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal
control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program or state financial assistance project on a timely basis. A significant deficiency in internal
control over compliance is a deficiency, or a combination of deficiencies, in internal control over
compliance with a type of compliance requirement of a federal program or state financial assistance
project that is less severe than a material weakness in internal control over compliance, yet important
enough to merit attention by those charged with governance. A material weakness in internal control
over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such
that there is a reasonable possibility that material noncompliance with a type of compliance requirement
of a federal program or state financial assistance project will not be prevented, or detected and corrected,
on a timely basis.
Our consideration of intemal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not
identify any deficiencies in internal control over compliance that we consider to be material weaknesses,
as defined above.
This report is intended solely for the information and use of the City Mayor, City Councilmembers, City
Manager and City Management, the State of Florida Office of the Auditor General and applicable federal
and state awarding agencies and pass - through entities and is not intended to be and should not be used by
anyone other than these specified parties.
March 30, 2011
Clearwater, Florida
Po.L/.LrnpiL t �IW r. e.
158
ICity of Clearwater, Florida
Schedule of Expenditures of Federal Awards
and State Financial Assistance Projects
1 For the Year Ended September 30, 2010
Federal Grantor / Federal
Pass - through Grantor / CFDA Share of
I Program Title Number Grant I.D. Number Expenditures
FEDERAL AWARDS
U.S. Department of Housing and Urban Development:
1 Community Development Block Grant - Entitlement 14.218 B- 07 -MC -12 -0002 $ 43,734
14.218 B- 08 -MC -12 -0002 788,410
14.218 Program Income 9,150
I ARRA- Community Development Block Grant Recovery (CDBG -R) 14.253 B- 09 -MY -12 -0002 128,042
969,336
Home Investment Partnerships Program 14.239 M- 01 -MC -12 -0230 77,100
I 14.239 M- 03 -MC -12 -0230 360
14.239 M- 04 -MC -12 -0230 85
14.239 M- 05 -MC -12 -0230 369,859
14.239 M- 06 -MC -12 -0230 164,289
I 14.239 M- 07 -MC -12 -0230 25,436
14.239 M- 08 -MC -12 -0230 107,594
14.239 Program Income 553,853
14.239 1,298, 576
I Economic Development Initiative - Special Project, Neighborhood Initiative
and Miscellaneous Grants - Steetscape 2007 14.251 B- 08 -SP -FL -0089 77,703
ITotal U.S. Department of Housing and Urban Development 2,345,615
U.S. Department of the Interior:
I Fish and Wildlife Service
Passed through Florida Fish and Wildlife Commission
Sport Fish Restoration Program - Bay Esplande Boat Ramp 15.605 FWC Contract 09018 23,279
1 Sportfishing and Boating Safety Act - Downtown Boat Slips 15.622 50 CFR Part 86 1,118,125
Passed through Florida Dept of Environmental Protection
Clean Vessel Act - 2 Pumpout Systems 15.616 DEP Agreeement MV008 CVA 09 -552 88,548
Total U.S. Department of the Interior - Fish and Wildlife Service 1,229,952
1 U.S. Department of Justice:
Federal Forfeiture Sharing 16.000 FL0520300 195,981
I Office of Victims of Crimes
Services for Trafficing Victims - Human Trafficing Task Force 16.320 2006 -VT -BX -0007 78,966
Services for Trafficing Victims - Human Trafficing Immersion 16.320 2008- VT- BX -K101 22,523
I 16.320 101,489
Bureau of Justice Assistance
Bulletproof Vest Partnership Program 16.607 2006- BO -BX- 06133388 5,593
Edward Byrne Memorial Justice Assistance Grant Program - Digital
I
Camera & Motorcycle Helmets 16.738 2010 -DJ -BX -1597 1,161
Edward Byrne Memorial Justice Assistance Grant Program - CPD
Language Training 16.738 2010 -JAGC- PINE -3 -4X -161 6,625
I ARRA-Recover 16.738 7,786
Act - Edward Byrne Memorial Justice Assistance Grant
Program /Grants to States and Territories - Hispanic Outreach Center 16.803 2010 -ARRC- PINE -8 -W7 -297 61,210
1 Total U.S. Department of Justice 372,059
1 159
City of Clearwater, Florida
Schedule of Expenditures of Federal Awards
and State Financial Assistance Projects - Continued
For the Year Ended September 30, 2010
Federal Grantor /
Pass - through Grantor / CFDA
Program Title Number
Grant I.D. Number
FEDERAL AWARDS (continued)
U.S. Department of Transportation:
Federal Highway Administration
Passed through Florida Department of Transportation:
Highway Planning and Construction - Clearwater Beach Trail
Connector Phase 1
Highway Planning and Construction - Clearwater Beach Trail
Connector Phase 2
ARRA- Highway Planning and Construction - East Ave Bike Lanes
Pipeline & Hazardous Materials Safety Administration
Technical Assistance Grant
Total U.S. Department of Transportation
U.S. Department of Treasury:
Federal Forfeiture Sharing
Total U.S. Department of Treasury
U.S. Environmental Protection Agency:
Office of Solid Waste and Emergency Response
Brownfields Assessment and Cleanup Cooperative Agreements
ARRA- Brownfields Assessment and Cleanup Cooperative Agreements
Brownfields Assessment and Cleanup Cooperative Agreements
Total U.S. Environmental Protection Agency
U.S. Department of Energy:
20.205 FPN 415744- 1 -58 -01
20.205 FPN 415744- 2 -58 -01
20.205 FPN 424399- 1 -58 -01
20.205
20.721 DTPH56- 09- G- PHPT23
21.000 FL0520300
66.818 BF- 96486307 -0
66.818 2B- 95427409 -0
66.818 BL- 98487299 -5
66.818
ARRA- Energy Efficiency and Conservation Block Grant Program (EECBG) 81.128 DE- SC0002363
Total U.S. Department of Energy
Corporation For National and Community Services:
Passed through FL Commission on Community Services
Americorps - 2009
Americorps - 2010
Total Corporation for National and Community Services
U.S. Department of Homeland Security:
94.006 Grant 06AFHFL0010008
94.006 Grant 06AFHFL0010008
Passed through Florida Department of Law Enforcement
Buffer Zone Protection Program (BZPP) - FY07 II 97.078 2009 -BZPP- PINE -1 -V4 -005
Total U.S. Department of Homeland Security
Total Federal Financial Assistance
160
1
Federal 1
Share of
Expenditures 1
1
70,767
310,559
36,173
417,499
50,000 1
467,499
21,293
21,293
1
118,099
179,008
1,516
298,623
298,623
812,161
812,161
1
51,720
84,290
136,010
1
77,576
77,576
S 5,760,788 1
1
City of Clearwater, Florida
Schedule of Expenditures of Federal Awards
and State Financial Assistance Projects - Continued
For the Year Ended September 30, 2010
State Grantor /
Pass - through Grantor /
Program Title
CSFA
Number
Grant I.D. Number
State
Share of
Expenditures (a)
STATE FINANCIAL ASSISTANCE
Florida Executive Office of the Governor, Office of
Tourism, Trade, and Economic Development
Brownfield Grant
Total Florida Executive Office of the Governor
Florida Department of Environmental Protection:
Florida Recreation Development Assistance Program -
Momingside Improvements
Enterprise Dog Park
Statewide Surface Water Restoration Projects -
Lake Bellevue Stormwater Improvements
Water Protection and Sustainability Program
Morningside Reclaimed Water
Skycrest Reclaimed Water
Total Florida Department of Environmental Protection
Florida Department of Community Affairs:
Florida Housing Finance Corporation
State Housing Initiative Partnership Program (SHIP)
Total Florida Department of Community Affairs
Florida Department of Transportation:
Aviation Development Grants -
Install New Security Fencing and Cameras
FBO Building Modification at Airpark
Total Florida Department of Transportation
Florida Department of Elder Affairs:
Fixed Capital Outlay - Senior Center
Total Florida Department of Elder Affairs
Florida Department of Revenue:
Phillies Stadium
Total Florida Department of Revenue
Total State Financial Assistance
Total Expenditures of Federal Awards
and State Financial Assistance Projects
31.011 OT98 -097
37.017 DEP Agreement A9098
37.017 DEP Agreement F8082
37.017
(a) Funded with State grants and aids appropriations.
37.039 Agreement 09CON000086
37.066 Agreement 05CON000049
37.066 Agreement 07CON000033
37.066
52.901 n/a
55.004 FPN:415770- 1- 94 -01, Contract APF54
55.004 FPN :41 2431- 1- 94 -01; Contract ANW13
65.013 MOU# XQ913
73.016
161
$ 13,290
13,290
135,559
103,149
238,708
241,534
301,840
1,318,535
1,620,375
2,100,617
1,279,056
1,279,056
38,907
127,245
166,152
683,405
683,405
500,004
500,004
S 4,742,524
$ 10,503,312
City of Clearwater, Florida
Notes to Schedule of Expenditures of Federal Awards
and State Financial Assistance Projects
For the Year Ended September 30, 2010
NOTE 1 — Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance Projects
presents the activity of all federal financial and state grant activity projects of the City of Clearwater, Florida
(the "City"). Federal and state financial assistance received directly from federal and state agencies, and
federal financial assistance passed through other governmental agencies are included on the schedules.
The information in this schedule is presented in accordance with the requirements of OMB Circular A -133,
Audits of States, Local Governments and Non- Profit Organizations and Chapter 10.550, Rules of the
Auditor General.
NOTE 2 — Basis of Accounting
The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance Projects is
presented using the modified accrual or accrual basis of accounting, which is described in Note 1 to the
City's basic financial statements.
NOTE 3 — CFDA/CSFA Numbers
CFDA numbers represent Catalog of Federal Domestic Assistance and apply only to federal awards. CSFA
numbers represent Catalog of State Financial Assistance and apply only to state financial assistance.
NOTE 4 — Subrecipients
Of the federal and state expenditures presented in the Schedule, the City provided federal and state awards
to subrecipients as follows:
Program Title
Federal CFDA/
State CFSA
Amount Provided
To Subrecipients
U.S. HUD Community Development Block Grant
U.S. HUD Home Investment Partnerships Program
Florida Housing Finance Corporation, State Housing
Initiative Partnership Program
NOTE 5 — Loans Outstanding
14.218
14.239
52.901
$412,467
$242,017
$456,619
The City had the following loan balances outstanding at September 30, 2010. The current year additions
related to the loans are included in the Schedule of Federal Awards and State Financial Assistance.
14.218 Community Development Block Grant
14.239 Home Investment Partnership
52.901 State Housing Initiative Partnership
162
$ 2,286,903
4,421,723
7,243,242
$ 13,951,909
CITY OF CLEARWATER, FLORIDA
Schedule of Findings and Questioned Costs
Year Ended September 30, 2010
Section I — Summary of Auditors' Results
Financial Statements
Type of auditors' report issued: Unqualified
Internal control over financial reporting:
• Material weakness(es) identified? Yes X No
• Significant deficiency(ies) identified that are
not considered to be material weaknesses? Yes X None reported
Noncompliance material to financial statements noted? Yes X No
Federal and State Awards
Internal control over major programs:
• Material weakness(es) identified? Yes X No
• Significant deficiency(ies) identified that are
not considered to be material weaknesses? Yes X None reported
Type of auditors' report issued on compliance for major
programs: Unqualified
Any audit findings disclosed that are required to be
reported in accordance with Section S10(a)
Circular A- 133? Yes X No
Identification of major programs /projects:
federal Prog rns CFDANumber
U.S. Department of Housing and Urban Development:
Community Development Block Grant — Entitlement 14.218 / J 4.253
Community Development Block Grant — ARRA
U.S. Department of Housing and Urban Development: 14.239
Home Investment Partnership Program
U.S. Department of the Interior: passed through Florida 15.622
Fish and Wildlife Commission Sportfishingand Boating
Safety Act — Downtown Boat Slips
163
CITY OF CLEARWATER, FLORIDA
Schedule of Findings and Questioned Costs
Year Ended September 30, 2010
Federal Programs - Continued CFDA Number
U.S. Department of Transportation: passed through Florida
Department of Transportation Highway Planning and
Construction — ARRA
20.205
U.S. Department of Energy: Energy Efficiency and 81.128
Conservation Block Grant Program — ARRA
State Programs CSFA Number
Florida Department of Environmental Protection: 37.066
Water Protection and Sustainability Program
Florida Department of Elder Affairs: 65,013
Fixed Capital Outlay — Senior Center
Florida Department of Revenue: 73.016
Phillies Stadium
The threshold for distinguishing Type A and Type B programs was $300,000 for federal programs and
$300,000 for state projects.
Auditee qualified as low -risk auditee?
Section 11 — Financial Statement Findings
X Yes No
This section identifies the significant deficiencies, material weaknesses, fraud, illegal acts, and instances
of noncompliance related to the financial statements that are required to be reported in accordance with
Government Auditing Standards.
There were no findings required to be reported in accordance with Government Auditing Standards.
Section III — Federal and State Award Findings and Questioned Costs
This section identifies significant deficiencies, material weaknesses, and material instances of
noncompliance, including questioned costs, related to the audit of major federal awards and state financial
assistance projects, as required to be reported by OMB Circular A -133 and Chapter 10.550, Rules of the
Auditor General.
There were no findings required to be reported in accordance with OMB Circular A -133 and Chapter
10.550, Rules of the Auditor General.
164
MHM
Mayer Hoffman McCann P.C.
An Independent CPA Firm
KRMT Tampa Bay Division
13577 Feather Sound Drive, Suite 401)
Clearwater, FL 33762
Phone: 727.572.1400 - 213.879. 1400
Fax: 727.571.1933
www.mhm- pc.com
Management Letter
Honorable Mayor and City Councilmembcrs
City of Clearwater, Florida:
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, each major fund, and the aggregate remaining fund information of City of Clearwater, Florida (the
City), as of and for the year ended September 30, 2010, and have issued our report thereon dated March 30,
2011. We have also audited the financial statements of each of the City's non -major governmental, non -major
enterprise, internal service and fiduciary funds presented in the accompanying combining and individual fund
statements and schedules as listed in the table of contents.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States; and OMB Circular A-133, Audits ofStates, Local Governments,
and Non - Profit Organizations and Chapter 1 0.550, Rules of the Auditor General. We have issued our Report
on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance with Government Auditing Standards, Report on Compliance
with Requirements Applicable to each Major Federal Program and State Financial Assistance Project and on
Internal Control Over Compliance in accordance with OMB Circular A -I 33 and Chapter 10.550, Rules of the
Auditor General of the State of Florida and the related Schedule of F indings and Questioned Costs.
Disclosures in those reports and schedule, which are dated March 30, 2011, should be considered in
conjunction with this management letter.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General wh ich
governs the conduct of local government entity audits performed in the State of Florida. This letter includes
the following information, which is not included in the aforementioned auditors' reports:
D Section 10.554(I)(i)1., Rules of the Auditor General, requires that we determine whether or not
corrective actions have been taken to address findings and recommendations made in the
preceding annual financial audit report. Corrective actions have been taken to address findings
and recommendations made in the preceding annual financial audit report except as noted in the
accompanying Appendix A to this Management Letter.
Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit include a review of the
provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In
connection with our audit, nothing came to our attention that would cause us to believe that the
City was in noncompliance with Section 218.415, Florida Statutes.
165
➢ Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the
management letter any recommendations to improve financial management. In connection with
our audit, the recommendations are noted in the accompanying Appendix A to this Management
Letter.
➢ Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address violations of
provisions of contracts or grant agreements, or abuse that have occurred or are likely to have
occurred, that have an effect on the financial statements that is less than material but more than
inconsequential. In connection with our audit, we did not have any such findings.
➢ Section 10.554(1)(i)5., Rules of the Auditor General, provides that the auditor may, based on
professional judgment, report the following matters that have an inconsequential effect on the
financial statements, considering both quantitative and qualitative factors: (1) violations of
provisions of contracts or grant agreements, fraud, illegal acts, or abuse and (2) deficiencies in
internal control that are not significant deficiencies. In connection with our audit, the findings
are noted in the accompanying Appendix A to this Management Letter.
➢ Section 10.554(1)(i)6., Rules of the Auditor General, requires that the name or official title and
legal authority for the primary government and each component unit of the reporting entity be
disclosed in the management letter, unless disclosed in the notes to the financial statements.
This information has been disclosed in the notes to the financial statements.
➢ Section 10.554(1)(i)7.a., Rules of the Auditor General, requires a statement be included as to
whether or not the local governmental entity has met one or more of the conditions described in
Section 218.503(1), Florida Statutes and identification of the specific condition(s) met. In
connection with our audit, we determined that the City did not meet any of the conditions
described in Section 218.503(I ), Florida Statutes.
➢ Section 10.554(1)(i)7.b., Rules of the Auditor General, req uires that we determine whether the
annual financial report for the City for the fiscal year ended September 30, 2010, filed with the
Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is
in agreement with the annual financial audit report for the fiscal year ended September 30,
2010. In connection with our audit, we determined that these two reports were in agreement.
➢ Pursuant to Sections I0.554(1)(i)7.c.and 10. 556(7), Rules of the Auditor General, we appl ied
financial condition assessment procedures. It is management's responsibility to monitor the
City's financial condition, and our financial condition assessment was based in part on
representations made by management and the review of the financial information provided by
same.
Pursuant to Chapter 119, Florida Statutes, this management letter is a public record and its distribution is not
limited. Auditing standards generally accepted in the United States of America require us to indicate that this
letter is intended solely for the information and use of the City Mayor, City Councilmembers, City Manager,
City Management, and the Florida Auditor General, and is not intended to be and should not be used by
anyone other than these specified parties.
March 30, 2011
Clearwater, Florida
166
Appendix A
CITY OF CLEARWATER, FLORIDA
Appendix A — Management Letter Comments
September 30, 2010
Current Year Recommendations:
2010 -01: Capital Assets
Observation: In the prior year management letter, the predecessor auditors recommended that the City
implement the fixed asset management module in their system to calculate and track the depreciation for
all depreciable assets rather than tracking assets in excel spreadsheets. The system was implemented in
the current year and the City continues to track assets in excel concurrently with tracking in the new
module. A limitation in the module prevents the City from disposing of items in the module throughout
the year. In order for the assets to be properly depreciated, the City must wait until after year end to
record disposals in the module. Due to this limitation in the module, several items, although immaterial
to the overall financial statements, were not disposed of or properly transferred in the enterprise funds
prior to the closing of the funds in the general ledger system. This led to additional audit time being spent
to reconcile between the system reports and the excel schedules and resulted in five passed adjustments
during the audit.
In addition, the garage vehicles, which are tracked in the SPL asset management system, had not been
timely or properly reconciled to the general ledger. This also resulted in additional audit time to reconcile
and test the garage proprietary fund capital asset balances.
Recommendation: We recommend that the City determine if they want to continue to maintain the
tracking of capital assets in both the excel format and the new module since it appears to cause
duplication of work. The City should also make every effort to record the disposals and transfers prior to
the closing of the enterprise funds at year end to ensure the items are properly accounted for in the correct
fiscal year. Additionally, the City should consider having one person in charge of the overall close out
process for capital assets across all funds to summarize and review the detail provided by the individual
fund accountants and to ensure that all funds have been properly reconciled to the general ledger and
fixed asset module for proper financial statement presentation.
Management Response: Management concurs and will address capital asset reporting system
improvements for both the reporting and depreciation calculation issues during fiscal 2011, to eliminate
the duplicate excel format and to also allow for the timely recording of asset disposals.
2010 -02: Payroll
Observation: During our documentation of controls over the payroll process, it was noted that there is
currently no policy in place for payroll personnel to take mandatory vacation. Additionally, there is no
one cross - trained to perform the duties of the payroll manager in her absence.
Recommendation: We recommend the City consider a mandatory vacation policy and proper cross -
training for all key employees with management duties. This will ensure that duties are performed by
others and could help to eliminate an opportunity for an employee to design and commit fraud schemes.
Management Response: The City will consider a mandatory vacation policy during fiscal 2011. The
City is currently addressing additional cross - training on payroll manager duties and will continue to
emphasize proper cross - training of all key management employees.
167
Appendix A
2010 -03: Information Technology
Observation: During the IT Control Environment assessment, deficiencies were noted related to the
City's general control environment with respect to access, security and general awareness.
Recommendation: We recommend that the City of Clearwater perform a thorough IT risk assessment
and a detailed vulnerability assessment on the City's information system and network environment. This
will improve the City's ability to prevent and detect fraud related to the IT environment. This will also
ensure the City is aware of any potential threats resulting from unauthorized activity in the IT
environment.
Management Response: Management agrees with the audit recommendation to perform risk assessments
(external assessments are currently performed every other year, and an internal assessment was performed
in 2010). The City IT Department will move to expand their 3rd party assessment program provided that
there is a clear cost - benefit to increasing the scope of the review procedure. The City IT Department will
also review current business processes and security protocols as they pertain to the handling and
dissemination of sensitive information (data or information protected under current Public Records Law)
that is stored within City systems.
Follow Up on Prior Year Findings and Recommendations:
2009: No findings noted that require follow up.
2008 comment carried forward to 2009 regarding capital asset schedules: Although the fixed asset
management system was implemented to calculate and track depreciation for depreciable assets during
fiscal year 2010, this area continues to be a problem. See current year recommendation at 2010 -01.
168