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City of Casselberry, Florida

COMPREHENSIVE ANNUAL

FINANCIAL REPORT

Year Ended September 30, 2002

Prepared by Department of Finance

City of Casselberry, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT

TABLE OF CONTENTS Year Ended September 30, 2002

INTRODUCTORY SECTION

Page

Number

ELECTED OFFICIALS AND FINANCIAL MANAGEMENT………………………………………….………. i

ORGANIZATIONAL CHART…………………………………………………………………………………….

ii

CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING…………………………………………………………………….………..……

iii

LETTER OF TRANSMITTAL……………………………………………………………………………….……

iv

FINANCIAL SECTION

INDEPENDENT AUDITOR’S REPORT………..……………………………………………………………..…

1

GENERAL-PURPOSE FINANCIAL STATEMENTS (Combined Statements – Overview) Combined Balance Sheet – All Fund Types and Account Groups……………………………………………...…

4

Combined Statement of Revenues, Expenditures and Changes in Fund Balances – All Governmental Fund Types…………………………………………………………………………………….

6

Combined Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – All Governmental Fund Types……………………………………………………………..

8

Combined Statement of Revenues, Expenses and Changes in Retained Earnings – All Proprietary Fund Types……………………………………………………………………………………….

12

Combined Statement of Changes in Plan Net Assets – Pension Trust Fund………………………………….

13

Combined Statement of Cash Flows – All Proprietary Fund Types……………………………………………….

14

Notes to the Financial Statements…………………………………………………………………………….…..

16

COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP FINANCIAL STATEMENTS AND SCHEDULES General Fund

Schedule of Expenditures and Transfers Out – Budget and Actual………………………………………………..

38

Special Revenue Funds

Combining Balance Sheet………………………………………………………………………………………….

44

Combining Statement of Revenues, Expenditures and Changes in Fund Balances………………………………..

46

Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual………… 48


TABLE OF CONTENTS – Continued Year Ended September 30, 2002

FINANCIAL SECTION – Continued Page

Number

Enterprise Fund

Balance Sheet – Utility System Enterprise Fund…………………………………………………………………..

58

Schedule of Budgeted Revenues and Expenses – Budget and Actual – Utility System Enterprise Fund – Non GAAP Basis…………………...……………………………………..…..

60

General Fixed Assets Account Group

Schedule of General Fixed Assets by Function and Activity…………………………………………...…………

62

Schedule of Changes in General Fixed Assets by Function and Activity………………………………………….

64

Schedule of Changes in General Fixed Assets by Source………………………………………………………….

65

STATISTICAL SECTION

Table 1 General Governmental Revenues by Source – Last Ten Fiscal Years………………………………..

67

Table 2 General Governmental Expenditures by Function – Last Ten Fiscal Years………………………….

68

Table 3 Property Tax Levies and Collections – Last Ten Fiscal Years……………………………………….

69

Table 4

Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years………………..

70

Table 5 Property Tax Rates – All Direct and Overlapping Governments – Last Ten Fiscal Years…………... 71

Table 6 Special Assessment Billings and Collections – Last Ten Fiscal Years……………………………….

72

Table 7 General Obligation Bonds – Computation of Overlapping Debt…………………………………..…

73

Table 8 Utility System Revenue Bond Coverage – Last Ten Fiscal Years……………………………………

74

Table 9 Demographic Statistics – Last Ten Fiscal Years……………………………………………………...

75

Table 10

Property Value and Construction – Last Ten Fiscal Years…………………………………………... 76

Table 11 Principal Taxpayers…………………………………………………………………………………..

77

Table 12 Miscellaneous Statistics……………………………………………………………………………… 78

Table 13 Tax Revenues By Source – Last Ten Fiscal Years…………………………………………………... 79


TABLE OF CONTENTS – Continued Year Ended September 30, 2002

COMPLIANCE SECTION

Page Number

Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards…………….……………

81

Report on Compliance With Requirements Applicable to Each Major Program and Internal Control Over Compliance…………………………………………………………………………..

82

Schedule of Expenditures of Federal Awards……………………………………..………………………………. 84

Schedule of Findings and Questioned Costs………………………………………………………………………. 85

Management Letter………………………………………………………………………………………………... 86

The City of Casselberry, Florida

Elected Officials

Mayor/Commissioner..…………………………………………………….

Bruce A. Pronovost

Commissioner/Vice Mayor…………………………………………………

Al Clark

Commissioner………………………………………………………………

Kathy Cook

Commissioner………………………………………………………………

Susan Doerner

Commissioner………………………………………………………………

Linda Hart

Financial Related Management City Manager……………………………………………………………….

Jack M. Schluckebier

City Clerk………………...…………………………………………………

Thelma L. McPherson

Director of Finance…………………………………………………………

Jeffrey S. Dreier

i

CITY OF CASSELBERRY, FLORIDA

ORGANIZATION CHARTCITIZENS OF CASSELBERRY

CITY COMMISSIONMayor-Commissioner Bruce A. Pronovost

Vice Mayor-Commissioner Al ClarkCommissioner Kathy Cook

Commissioner Susan DoernerCommissioner Linda Hart

TRUST AND AGENCY BOARDSCommunity Redevelopment AgencyPolice & Firefighters’ Pension Board

ADVISORY BOARDSBoard of AdjustmentCivil Service Board

Code Enforcement BoardOccupational License Review Board

Parks and Recreation Advisory BoardPlanning & Zoning CommissionSenior Center Advisory Board

CITY CLERKThelma L. McPherson

CITY MANAGERJack M. Schluckebier

CITY ATTORNEYCatherine D. Reischmann

COMMUNITYDEVELOPMENTDEPARTMENTRichard W. Wells

Director

Building InspectionCode Compliance

Community RedevelopmentOccupational Licensing

Planning & Zoning

PERSONNELDEPARTMENTM. Cristina Vivo’

Director

PersonnelLabor Relations

Safety

POLICEDEPARTMENT

John J. PavlisChief

PoliceAnimal Control

Communications

PUBLIC WORKSDEPARTMENT

Anthony T. SegretoDirector

Distribution & CollectionEngineeringLift Stations

Stormwater UtilityStreets & Fleet Maintenance

Water ProductionWater Reclamation

FINANCEDEPARTMENTJeffrey S. Dreier

Director

AccountingCustomer Service

Information SystemsInventory Control

Meter ServicePurchasing

PARKS &RECREATIONDEPARTMENTMatthew P. Fortini

Director

Recreation ServicesParks Maintenance

Senior Center

January 17, 2003

ii

FIREDEPARTMENTMitchel C. Floyd

Chief

Fire ControlAdvanced Life Support

Protective Services

vii

ECONOMIC CONDITION AND OUTLOOK The decade of the 90's exhibited an enviable growth rate for Casselberry, which has continued unabated into 2002. The population, according to 2000 Federal census, was at 22,629, but was adjusted to 23,430 at April 1, 2001 by state official population estimates because of federal census errors. At April 1, 2002, the official estimate is 23,854. The tax base grew from $518,000,000 in 1992 to $908,000,000 in 2002/03 fiscal year, an increase of 75%. This growth, together with diversification of general government revenue sources, has helped the City moderately decrease its property tax rate from its level in 1993 of 5.35 mills to its level in 2002/03 of 5.0 mills. This modest decline in the property tax rate makes the City attractive to residents and businesses, who view municipal tax rates conservatively. The growth pattern sustained by the City is derived from new construction and effective annexation policies. New construction and value growth in the past few years has resumed its pace from the era of the late '80's. Several new commercial and residential construction projects, as well as limited reconstruction, are underway. During 2002, housing development encompassing nearly 200 units has been under construction. Retail and professional office space encompassing several buildings in excess of 100,000 sq. ft. was also constructed. Expanded growth and development is anticipated for 2003, based on plans in progress and minor annexations which continue to expand the value and growth pattern for the City of Casselberry.

MAJOR INITIATIVES

In the past 12 months (fiscal year 2002), the City has reached important milestones and has undertaken several new significant projects, itemized by the following: • Utility System - Water, Wastewater and Stormwater Upgrades. The City has finalized design, undertaken

construction, and received state low-interest loan funding for expansion of the reclaimed (re-use) water system and one million gallon storage facility. The storage is complete; the distribution line expansion requires re-bidding because of weak market competitive forces. Construction will occur to enlarge the system by nine to ten miles during 2003. Work is also nearing completion on CDBG grant-funded utility upgrades in the Bayou Drive and Crestview Lane area in north Casselberry.

• Transportation/Roadway Upgrades. Casselberry, as well as all cities in Seminole County, participated with a

successful referendum effort in Seminole County to seek renewal of the one-cent sales tax, to be used primarily for roadway upgrades throughout Seminole County. These funds will generate nearly $10 million of additional transportation upgrades in Casselberry in the next ten years. The City's funding will be concentrated on upgrades to Winter Park Drive, in the area north of Seminole Boulevard and south of S.R. 434, as well as improving the intersection of Triplet Lake Drive and U.S. Highway 17-92. Further, the funds committed through the Countywide projects will dedicate between $70 million and $80 million for upgrades of the major intersection at S.R. 436 and U.S. Highway 17-92, as well as the intersection at S.R. 436 and Red Bug Lake Road. Planning, design and land acquisition activities for these projects are underway by the City and State.

• Beautification/Parks System Upgrades. The City has continued its efforts in park upgrades by facility

improvements and master plan changes concerning a variety of parks in Casselberry in the past 12 months. Additional grant funding has been secured and construction underway to upgrade Sunnytown Park and Forest Brook Park (adjacent to Derbyshire Road). Further, the City has received notice of a $200,000 State funded grant to upgrade, with City match, the downtown park adjacent to City hall. The City will also be finishing upgrades at the old Parks Administration Building (McDonald House) to rejuvenate it for public art program showings and will complete construction totaling approximately $400,000 in parks improvements and upgrades during 2003.

• Community Redevelopment and the 17-92 Business Corridor. The City Community Redevelopment Agency

recently acquired additional commercial parcels at the plaza at the intersection of U.S. Highway 17-92 and Triplet Lake Drive. To date, the City has purchased six of the parcels from that plaza and two of the parcels from the plaza directly across U.S. Highway 17-92, adjacent to Melody Lane. The City's efforts for coordination of redevelopment along U.S. Highway 17-92 and creating a downtown district in that area have been enhanced by extension of the Tax increment financing by the County during 2002 for another five years beyond its 15-year initial term. It will now extend through 2014.

1870 Aloma Avenue

Suite 120 Winter Park, Florida 32789

Tel 407-599-7055 FAX 407-599-7054

5070 North A1A Suite 250

Vero Beach, Florida 32963 Tel 772-234-8484 FAX 772-234-8488

465 Summerhaven Drive Suite D

DeBary, Florida 32713 Tel 386-668-3328 FAX 386-668-3327

1

INDEPENDENT AUDITOR’S REPORT

The Honorable Mayor and Members of the City Commission City of Casselberry, Florida We have audited the accompanying general-purpose financial statements of the City of Casselberry, Florida, as of and for the year ended September 30, 2002, as listed in the table of contents. These general-purpose financial statements are the responsibility of the City of Casselberry, Florida’s management. Our responsibility is to express an opinion on these general-purpose 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 examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Casselberry, Florida, as of September 30, 2002, and the results of its operations and the cash flows of its proprietary fund types for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated January 10, 2003 on our consideration of the City of Casselberry, Florida’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. Our audit was conducted for the purpose of forming an opinion on the general-purpose financial statements of the City of Casselberry, Florida, taken as a whole. The combining and individual fund and account group financial statements and schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements of the City of Casselberry, Florida. Such information has been subjected to the auditing procedures applied in the audit of the general-purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general-purpose financial statements taken as a whole.

2

The information presented in the statistical section is presented for purposes of additional analysis and is not a required part of the general-purpose financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the general-purpose financial statements and, accordingly, we express no opinion on it.

Winter Park, Florida January 10, 2003

GENERAL-PURPOSE FINANCIAL STATEMENTS

(Combined Statements – Overview)

These basic financial statements provide a summary overview of the financial position of all funds and account groups as well as the operating results of all funds. They also serve as an introduction to the more detailed statements and schedules that follow in the next subsection.

3

City of Casselberry, FloridaCOMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUPSSeptember 30, 2002

Special Debt CapitalGeneral Revenue Service Projects

ASSETS AND OTHER DEBITSCash and cash equivalents 5,609,153$ 3,767,562$ 29,786$ -$ Investments - - - - Receivables 620,145 78,367 110,545 - Due from other funds 747,423 - - - Due from other governments 423,544 99,695 - 86,772 Prepaids 76,051 9,084 - - Inventories 13,073 - - - Advances to other funds 983,832 - - - Restricted assets: Cash and cash equivalents - - - - Investments - - - - Property, plant and equipment - net - - - - Wastewater disposal rights - - - - Amount available in debt service fund - - - - Amount to be provided for retirement of general long-term debt - - - - Total Assets and Other Debits 8,473,221$ 3,954,708$ 140,331$ 86,772$

LIABILITIESAccounts payable 913,165$ 225,379$ -$ 86,338$ Due to other funds - - - - Due to other governments 30,390 4,135 - - Current portion of capital lease - - - - Accrued liabilities 350,974 55,935 - - Deposits 666 - - - Deferred revenues 188,781 - - - Current portion of notes payable - - - - Liabilities payable from restricted assets - - - - Advances from other funds - 983,832 - - Bonds payable - - - - Notes payable - - - - Long-term portion of capital lease - - - - Total Liabilities 1,483,976 1,269,281 - 86,338

EQUITY AND OTHER CREDITSInvestment in general fixed assets - - - - Contributed Capital - - - - Retained Earnings / Unreserved - - - - Fund balances: Reserved 1,072,956 9,084 140,331 - Unreserved / undesignated 5,916,289 2,676,343 - 434 Total Equity and Other Credits 6,989,245 2,685,427 140,331 434 Total Liabilities, Equity and Other Credits 8,473,221$ 3,954,708$ 140,331$ 86,772$

The accompanying notes are an integral part of the financial statements.4

Governmental Fund Types

FiduciaryProprietary Fund Types Fund Type

General TotalsInternal Pension General Long-Term (Memorandum

Enterprise Service Trust Fixed Assets Debt Only)

2,563,895$ 752,020$ 1,123,561$ -$ -$ 13,845,977$ 1,982 - - - - 1,982

1,100,585 - - - - 1,909,642 - - - - - 747,423 - - - - - 610,011

43,991 - - - - 129,126 346,379 - - - - 359,452

- - - - - 983,832

6,803,965 - - - - 6,803,965 175,600 - - - - 175,600

28,153,208 - - 29,521,050 - 57,674,258 3,203,727 - - - - 3,203,727

- - - - 140,331 140,331

- - - - 3,286,378 3,286,378 42,393,332$ 752,020$ 1,123,561$ 29,521,050$ 3,426,709$ 89,871,704$

461,026 -$ -$ -$ -$ 1,685,908$ - 747,423 - - - 747,423

7,293 - - - - 41,818 38,790 - - - - 38,790

200,051 - - - 490,880 1,097,840 - - - - - 666 - - - - - 188,781

510,517 - - - - 510,517 1,519,581 - - - - 1,519,581

- - - - - 983,832 7,377,856 - - - 2,775,000 10,152,856 3,686,528 - - - - 3,686,528

- - - - 160,829 160,829 13,801,642 747,423 - - 3,426,709 20,815,369

- - - 29,521,050 - 29,521,050 18,551,323 - - - - 18,551,323 10,040,367 4,597 - - - 10,044,964

- - 1,123,561 - - 2,345,932 - - - - - 8,593,066

28,591,690 4,597 1,123,561 29,521,050 - 69,056,335 42,393,332$ 752,020$ 1,123,561$ 29,521,050$ 3,426,709$ 89,871,704$

5

Account Groups

City of Casselberry, FloridaCOMBINED STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCESALL GOVERNMENTAL FUND TYPESFor the Year Ended September 30, 2002

Special DebtGeneral Revenue Service

REVENUESTaxes 7,357,291$ 1,603,178$ -$ Special assessments 9,616 - 9,471 Licenses and permits 551,316 - - Intergovernmental revenues 2,584,409 120,274 - Charges for services 1,161,109 888,599 - Fines and forfeitures 293,506 29,665 - Interest 128,569 58,352 362 Miscellaneous revenues 1,637,498 69,696 - Total Revenues 13,723,314 2,769,764 9,833

EXPENDITURES Current: General government 4,614,818 335,750 - Public safety 7,126,296 1,326,946 - Physical environment 1,300,300 414,282 - Transportation 1,071,379 286,020 - Culture/Recreation 1,322,924 107,639 - Human services 125,271 - - Debt service: Principal retirement 188,610 - - Interest and fiscal charges 150,749 - - Total Expenditures 15,900,347 2,470,637 -

Excess of Revenues Over (Under) Expenditures (2,177,033) 299,127 9,833

OTHER FINANCING SOURCES (USES) Operating transfers in 1,585,423 204,000 - Operating transfers out (204,000) - - Total Other Financing Sources (Uses) 1,381,423 204,000 -

Excess of Revenues and Other Financing Sources (Uses) Over (Under) Expenditures (795,610) 503,127 9,833

Fund Balances at Beginning of Year 7,784,855 2,182,300 130,498

Fund Balances at End of Year 6,989,245$ 2,685,427$ 140,331$


TotalsCapital (MemorandumProjects Only)

-$ 8,960,469$ - 19,087 - 551,316

560,598 3,265,281 - 2,049,708 - 323,171

32 187,315 - 1,707,194

560,630 17,063,541

- 4,950,568 - 8,453,242 - 1,714,582

561,218 1,918,617 - 1,430,563 - 125,271

- 188,610 - 150,749

561,218 18,932,202

(588) (1,868,661)

- 1,789,423 - (204,000) - 1,585,423

(588) (283,238)

1,022 10,098,675

434$ 9,815,437$

7


AND CHANGES IN FUND BALANCES - BUDGET AND ACTUALALL GOVERNMENTAL FUND TYPESFor the Year Ended September 30, 2002

Variance Favorable

Budget Actual (Unfavorable)REVENUESTaxes 7,299,206$ 7,357,291$ 58,085$ Special assessments 5,500 9,616 4,116 Licenses and permits 612,000 551,316 (60,684) Intergovernmental revenues 2,652,503 2,584,409 (68,094) Charges for services 1,229,200 1,161,109 (68,091) Fines and forfeitures 265,500 293,506 28,006 Interest 356,500 128,569 (227,931) Miscellaneous revenues 1,536,404 1,637,498 101,094 Total Revenues 13,956,813 13,723,314 (233,499)

EXPENDITURESCurrent: General government 5,031,501 4,614,818 416,683 Public safety 8,096,138 7,126,296 969,842 Physical environment 1,422,959 1,300,300 122,659 Transportation 1,238,314 1,071,379 166,935 Culture/Recreation 1,592,413 1,322,924 269,489 Human services 137,887 125,271 12,616 Debt service: Principal retirement 188,610 188,610 - Interest and fiscal charges 150,749 150,749 - Total Expenditures 17,858,571 15,900,347 1,958,224

Excess of Revenues Over (Under) Expenditures (3,901,758) (2,177,033) 1,724,725

OTHER FINANCING SOURCES (USES)Operating transfers in 1,585,423 1,585,423 - Operating transfers out (204,000) (204,000) - Total Other Financing Sources (Uses) 1,381,423 1,381,423 -

Excess of Revenues and Other Financing Sources (Uses) Over (Under) Expenditures (2,520,335)$ (795,610) 1,724,725$

Fund Balances at Beginning of Year 7,784,855

Fund Balances at End of Year 6,989,245$

8

General

The accompanying notes are an integral part of the financial statements.

Debt Service Variance Variance Favorable Favorable

Budget Actual (Unfavorable) Budget Actual (Unfavorable)

1,450,000$ 1,603,178$ 153,178$ -$ -$ -$ - - - - 9,471 9,471 - - - - - -

847,462 120,274 (727,188) - - - 869,000 888,599 19,599 - - -

20,000 29,665 9,665 - - - 83,746 58,352 (25,394) - 362 362 2,590 69,696 67,106 - - -

3,272,798 2,769,764 (503,034) - 9,833 9,833

406,854 335,750 71,104 - - - 1,423,018 1,326,946 96,072 - - -

815,871 414,282 401,589 - - - 1,745,755 286,020 1,459,735 - - -

512,266 107,639 404,627 - - - - - - - - -

- - - - - - - - - - - -

4,903,764 2,470,637 2,433,127 - - -

(1,630,966) 299,127 1,930,093 - 9,833 9,833

204,000 204,000 - - - - - - - - - -

204,000 204,000 - - - -

(1,426,966)$ 503,127 1,930,093$ -$ 9,833 9,833$

2,182,300 130,498

2,685,427$ 140,331$

9

Special Revenue

Continued


AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL, ContinuedALL GOVERNMENTAL FUND TYPESFor the Year Ended September 30, 2002

Variance Favorable

Budget Actual (Unfavorable)REVENUESTaxes -$ -$ -$ Special assessments - - - Licenses and permits - - - Intergovernmental revenues 473,600 560,598 86,998 Charges for services - - - Fines and forfeitures - - - Interest - 32 32 Miscellaneous revenues - - - Total Revenues 473,600 560,630 87,030

EXPENDITURESCurrent: General government - - - Public safety - - - Physical environment - - - Transportation 803,052 561,218 241,834 Culture/Recreation - - - Human services - - - Debt service: Principal retirement - - - Interest and fiscal charges - - - Total Expenditures 803,052 561,218 241,834

Excess of Revenues Over (Under) Expenditures (329,452) (588) 328,864

OTHER FINANCING SOURCES (USES)Operating transfers in - - - Operating transfers out - - - Total Other Financing Sources (Uses) - - -

Excess of Revenues and Other Financing Sources (Uses) Over (Under) Expenditures (329,452)$ (588) 328,864$

Fund Balances at Beginning of Year 1,022

Fund Balances at End of Year 434$


Capital Projects

Totals (Memorandum Only) Variance Favorable

Budget Actual (Unfavorable)

8,749,206$ 8,960,469$ 211,263$ 5,500 19,087 13,587

612,000 551,316 (60,684) 3,973,565 3,265,281 (708,284) 2,098,200 2,049,708 (48,492)

285,500 323,171 37,671 440,246 187,315 (252,931)

1,538,994 1,707,194 168,200 17,703,211 17,063,541 (639,670)

5,438,355 4,950,568 487,787 9,519,156 8,453,242 1,065,914 2,238,830 1,714,582 524,248 3,787,121 1,918,617 1,868,504 2,104,679 1,430,563 674,116

137,887 125,271 12,616

188,610 188,610 - 150,749 150,749 -

23,565,387 18,932,202 4,633,185

(5,862,176) (1,868,661) 3,993,515

1,789,423 1,789,423 - (204,000) (204,000) -

1,585,423 1,585,423 -

(4,276,753)$ (283,238) 3,993,515$

10,098,675

9,815,437$

11

City of Casselberry, FloridaCOMBINED STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN RETAINED EARNINGSALL PROPRIETARY FUND TYPESFor the Year Ended September 30, 2002

TotalsInternal (Memorandum

Enterprise Service Only)OPERATING REVENUES Water sales 3,847,422$ -$ 3,847,422$ Wastewater charges 4,967,209 - 4,967,209 Reclaimed water 118,152 - 118,152 Meter installation charges 41,690 - 41,690 Penalties and charges 227,645 - 227,645 Miscellaneous income 159,639 - 159,639 Total Operating Revenues 9,361,757 - 9,361,757

OPERATING EXPENSES BEFOREDEPRECIATION AND AMORTIZATIONAdministration and operations 2,714,545 - 2,714,545 Water distribution and wastewater collection 986,665 - 986,665 Wastewater lift station 533,762 - 533,762 Wastewater treatment and disposal 1,984,473 - 1,984,473 Drinking water production 921,183 - 921,183 Total Operating Expenses Before Depreciation and Amortization 7,140,628 - 7,140,628

Operating Income Before Depreciation and Amortization 2,221,129 - 2,221,129

DEPRECIATION AND AMORTIZATION 1,688,385 - 1,688,385

Operating Income 532,744 - 532,744

NON-OPERATING REVENUES (EXPENSES)Interest income 165,174 14,538 179,712 Gain on disposal of fixed assets 17,594 - 17,594 Interest expense (532,176) - (532,176) Total Non-Operating Revenues (Expenses) (349,408) 14,538 (334,870)

Income Before Operating Transfers 183,336 14,538 197,874

OPERATING TRANSFERSOperating transfers out (838,000) (747,423) (1,585,423) Total Operating Transfers (838,000) (747,423) (1,585,423)

NET INCOME (LOSS) (654,664) (732,885) (1,387,549)

Contributed capital 251,023 - 251,023

Retained Earnings at Beginning of Year 10,444,008 737,482 11,181,490

Retained Earnings at End of Year 10,040,367$ 4,597$ 10,044,964$


City of Casselberry, FloridaCOMBINED STATEMENT OF CHANGES IN PLAN NET ASSETS

PENSION TRUST FUNDFor the Year Ended September 30, 2002

ADDITIONSContributions: Employer contributions 23,103$ Employee contributions 9,551 State contributions 219,601 Total Contributions 252,255

Investment losses (39,452)

Total Additions 212,803

DEDUCTIONS 14,775

NET INCREASE 198,028

Net assets held in trust for pension benefitsBeginning of Year 925,533

End of Year 1,123,561$


City of Casselberry, FloridaCOMBINED STATEMENT OF CASH FLOWS

ALL PROPRIETARY FUND TYPESFor the Year Ended September 30, 2002


Enterprise Service Only)CASH FLOWS FROM OPERATING ACTIVITIESCash received from customers 9,054,369$ -$ 9,054,369$ Cash paid to suppliers for goods and services (4,736,705) - (4,736,705) Cash paid to employees for services (2,269,105) - (2,269,105) Net Cash Provided by Operating Activites 2,048,559 - 2,048,559

CASH FLOWS FROM NONCAPITALFINANCING ACTIVITIESOperating tranfers out (963,000) (200,000) (1,163,000) Net Cash Used in Noncapital Financing Activities (963,000) (200,000) (1,163,000)

CASH FLOWS FROM CAPITALAND RELATED FINANCING ACTIVITIESAcquisition and construction of fixed assets (2,118,165) - (2,118,165) Proceeds from sale of equipment 17,594 - 17,594 Proceeds from loan 828,559 - 828,559 Bond and note payable interest payments (550,236) - (550,236) Bond and note payable principal payments (1,189,871) - (1,189,871) Net Cash Used in Capital and Related Financing Activities (3,012,119) - (3,012,119)

CASH FLOWS FROM INVESTMENT ACTIVITIESProceeds from sale and maturity of investments 2,530 - 2,530 Interest on investments 171,816 14,538 186,354 Net Cash Provided by Investment Activities 174,346 14,538 188,884

Net (Decrease) in Cash and Cash Equivalents (1,752,214) (185,462) (1,937,676)

Cash and Cash Equivalentsat Beginning of Year 11,120,074 737,482 11,857,556

Cash and Cash Equivalentsat End of Year 9,367,860$ 552,020$ 9,919,880$

Reconciliation to the Financial Statements:Unrestricted Cash and Cash Equivalents 2,563,895$ 552,020$ 3,115,915$ Restricted Cash and Cash Equivalents 6,803,965 - 6,803,965

9,367,860$ 552,020$ 9,919,880$

ContinuedThe accompanying notes are an integral part of the financial statements.

14

City of Casselberry, FloridaCOMBINED STATEMENT OF CASH FLOWS

ALL PROPRIETARY FUND TYPES- ContinuedFor the Year Ended September 30, 2002


Enterprise Service Only)RECONCILIATION OF NET OPERATINGINCOME TO NET CASH PROVIDED BYOPERATING ACTIVITES

Operating Income 532,744$ -$ 532,744$

Adjustments to Reconcile Operating Incometo Net Cash Provided by Operating Activites:

Depreciation and amortization 1,688,385 - 1,688,385 Bad debt expense 24,813 - 24,813 (Increase) Decrease In - Accounts receivable (147,875) (147,875) Prepaids (977) - (977) Inventories (46,363) - (46,363) Increase (Decrease) In - Accounts payable 93,669 - 93,669 Capital lease payable (38,700) - (38,700) Due to other governments 491 - 491 Accrued liabilities 14,463 - 14,463 Contracts payable (41,472) - (41,472) Retainage payable 128,894 - 128,894 Customer utility deposits (159,513) - (159,513)

Total Adjustments 1,515,815 - 1,515,815

Net Cash Provided by Operating Activities 2,048,559$ -$ 2,048,559$

SIGNIFICANT TRANSACTIONSNOT AFFECTING CASH

None


City of Casselberry, Florida NOTES TO THE FINANCIAL STATEMENTS

September 30, 2002

16

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Casselberry (the “City”) was created under general law pursuant to a voters referendum held on October 30, 1940. The most recent amendments to the City Charter were adopted by way of a voters referendum held on November 5, 1991. The legislative branch of the City is composed of a five (5) member elected Commission, including a city-wide elected mayor. The City Commission is governed by the City Charter, and by state and local laws and regulations. The City Commission is responsible for the establishment and adoption of policy. The execution of such policy is the responsibility of the Commission appointed City Manager. The accounting policies of the City conform to generally accepted accounting principles as applicable to governments. The following is a summary of the more significant policies. A. The Reporting Entity The accompanying financial statements present the financial position, results of operations and cash flows of the applicable fund types and account groups governed by the City Commission of the City of Casselberry, Florida. The reporting entity for the City includes all functions of government for which the City Commission is considered to be financially accountable. Based upon the application of the criteria as set forth in Government Accounting Standards Board Statement Number 14, The Financial Reporting Entity, there are no potential component units or related organizations of the City. B. Fund Accounting The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures, or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The purpose of the City’s various funds and account groups are as follows: Governmental Fund Types General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resources, except those required to be accounted for in another fund. Special Revenue Funds – The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally or administratively restricted to expenditures for specified purposes. Debt Service Fund – The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest and related costs. Capital Projects Fund – The Capital Projects Fund are used to account for financial resources earmarked for the acquisition or construction of major capital facilities and other project oriented activities (other than those financed by proprietary funds). Proprietary Fund Types Enterprise Fund – The Enterprise Fund is used to account for operations that are financed and operated in a manner similar to private business enterprises – where the intent of the governing body is that the costs (expenses, including depreciation and amortization) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges.

City of Casselberry, Florida NOTES TO THE FINANCIAL STATEMENTS – CONTINUED September 30, 2002

17

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued B. Fund Accounting – Continued Proprietary Fund Types, Continued Internal Service Fund – The Internal Service Fund is used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City on a cost-reimbursement basis. Fiduciary Fund Type Pension Trust Funds – Pension Trust Funds are used to account for assets held by the City in a trustee capacity. The City has one (1) Pension Trust Fund that accounts for the City’s Police Officers’ and Firefighters’ Defined Benefit Pension Plan. Account Groups General Fixed Assets – The General Fixed Assets Account Group is used to account for all fixed assets of the City, except fixed assets of the City’s proprietary funds. General Long-Term Debt – The General Long-Term Debt Account Group is used to account for all long-term liabilities expected to be financed from governmental funds. C. Measurement Focus Government Fund Types General, Special Revenue, Debt Service, and Capital Projects Funds are accounted for on a spending or financial flow measurement focus. This means that only current assets and current liabilities are generally included on the balance sheets. Accordingly, the reported undesignated fund balances (net current assets) are considered measures of available, spendable or appropriable resources. Governmental Fund Type operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Proprietary Fund Types Enterprise and Internal Service Funds are accounted for on an income determination measurement focus. Accordingly, all assets and liabilities are included on their balance sheets, and the reported fund equity (total reported assets less total reported liabilities) provides an indication of the economic net worth of the fund. Operating statements for Proprietary Fund Types (on an income determination measurement focus) report increases (revenues) and decreases (expenses) in total economic net worth. Pursuant to the election option made available by Government Accounting Standards Board (GASB) Statement #20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities that use Proprietary Fund Accounting, pronouncements of the Financial Accounting Standards Board (FASB) issued after November 30, 1989, have not been applied. Fiduciary Fund Type The Pension Trust Fund is accounted for in essentially the same manner as the Proprietary Funds, using the same measurement focus. Account Groups The General Long-Term Debt and General Fixed Assets Account Groups are concerned only with the measurement of financial position. They are not involved with the measurement of results of operations. Long-Term debts, which are not intended to be financed through Proprietary Funds, are accounted for in the General Long-Term Debt Account Group. Fixed assets, which are not used in Proprietary Fund operations, are accounted for in the General Fixed Assets Account Group.


18

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued D. Basis of Accounting Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. All Governmental Funds are accounted for using the modified accrual basis of accounting. Under the modified accrual basis, revenues are recognized when they become measurable and available as net current assets. Revenues susceptible to accrual include intergovernmental revenues, charges for services and investment earnings. Expenditures are generally recognized under the modified accrual basis of accounting, when the related fund liability is incurred. Exceptions to this general rule include principal and interest on general long-term debt which are recognized when due. All Proprietary Funds and Pension Trust Funds are accounted for using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when they are incurred. E. Budgets and Budgetary Accounting Annual budgets are legally adopted for all governmental and proprietary fund types. The following procedures are used to establish the budgetary data reflected in the financial statements: 1) No later than August 1 of each year, the City Manager submits to the City Commission a proposed operating

budget for the fiscal year commencing the following October 1. 2) Public hearings are held to obtain taxpayer comments. 3) Prior to October 1, the budget is legally enacted through the passage of a resolution. 4) Budgets are legally adopted and formal budgetary integration is employed as a management control device

during the year for the General Fund, all Special Revenue Funds, the Debt Service Fund and the Capital Projects Fund. The budget adopted for the Enterprise Fund is to comply with bond covenants. The Internal Service Fund and Pension Trust Fund are not budgeted.

5) Budgets for the governmental fund types are adopted on a basis consistent with generally accepted accounting

principles (GAAP). Budgets for proprietary fund types are adopted on a non-GAAP basis to reflect budget versus actual information related to “operations and maintenance” as defined in bond covenants.

6) The City Manager is authorized to transfer part or all of an unencumbered appropriation balance between

departments within a fund; however, any revisions that alter the total appropriations of any fund must be approved by the City Commission. The classification detail at which expenditures may not legally exceed appropriations is at the total fund level. During the fiscal year ended, various appropriations were approved in accordance with this policy. Budgeted amounts shown in the financial statements are as originally adopted and as further amended. However, amendments were nominal and did not significantly change the originally adopted budget.

7) Appropriations shall lapse at the close of the fiscal year. F. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, demand deposits, certificates of deposit, money market accounts, savings accounts, investments in the State Board of Administration Local Government Pooled Investment Account, and highly liquid investments (including restricted assets) with a maturity of three months or less when purchased.


19

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued G. Investments Investments are stated at fair value. The City adopted Governmental Accounting Standards Board (GASB) Statement No. 31, Accounting and Financial Reporting for Certain Investment Pools during fiscal year 1998. Under this statement, the City has elected to present all investments at fair market value, with the exception of investments in the Florida Local Government Surplus Funds Trust Fund (SBA), an external 2a7-like investment pool which is presented at share price. All fair market valuations are based on quoted market prices. SBA pool shares are based on amortized cost, which approximates fair market value, of the SBA’s underlying portfolio. H. Receivables Property Taxes Receivable Under Florida law, the assessment of all properties and the collection of all county, municipal and school board property taxes are consolidated in the offices of the County Property Appraiser and County Tax Collector. The laws of the State regulating tax assessments are also designed to assure a consistent property valuation method statewide. State Statutes permit municipalities to levy property taxes at a rate of up to 10 mills. The City’s current millage is 5.00 mills (General Ad Valorem of 3.75 mills and Advanced Life Support of 1.25 mills).

All real and tangible personal property taxes are due and payable on the levy date of November 1 of each year or as soon thereafter as the assessment roll is certified by the Seminole County Property Appraiser (levy date). Seminole County mails to each property owner on the assessment roll a notice of the taxes due and the County also collects the taxes for the City. Taxes may be paid upon receipt of such notice from the County, with discounts at the rate of four percent (4%) if paid in the month of November, three percent (3%) if paid in the month of December, two percent (2%) if paid in the month of January, and one percent (1%) if paid in the month of February. Taxes paid during the month of March are without discount and all unpaid taxes on real and tangible property become delinquent on April 1 (the lien date) of the year following the year in which taxes were assessed. Procedures for collecting delinquent taxes, including applicable tax certificate sales, are provided for by the Laws of Florida. Accounts Receivable Utility System Fund operating revenues are generally recognized on the basis of cycle billings rendered monthly. Revenues for services delivered during the last month of the fiscal year that have not been read by September 30 are accrued based on meter readings for the applicable consumption taken at the beginning of October and billed in October. Special Assessments Receivable Special assessments receivable are recorded at the time the related project is completed and are secured by liens on the property benefited. Revenue is deferred until such time it becomes an available, spendable or appropriable resource. I. Inventories Inventories in the General Fund are stated at cost and inventories of the Utility System Fund (Enterprise) are stated at the lower of cost or market (determined on the “first-in, first-out” method). Inventories are accounted for by the consumption method, wherein inventories are charged as expenditures/expenses when used. Inventories of the General Fund consist of fuel and garage supplies. Inventories of the Utility System Fund consist primarily of meters, meter boxes, pipes and maintenance supplies held for use in maintaining and expanding the system. Obsolete and unusable items have been reduced to estimated salvage values. J. Prepaids Prepaids represent payments made to vendors for services that will benefit beyond September 30, 2002.


20

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued K. Restricted Assets The use of certain assets of the Utility System Enterprise Fund are restricted by specific provisions of bond resolutions and other agreements. Assets so designated are identified as restricted assets on the balance sheet. L. Property, Plant and Equipment Property, plant and equipment purchased in the Governmental Fund Types are recorded as expenditures at time of purchase. Such assets are capitalized at cost in the General Fixed Assets Account Group, including infrastructure improvements other than buildings, which include roads, bridges, sidewalks and lighting systems. Gifts or contributions are recorded in the General Fixed Assets Account Group at fair market value at the time received. No depreciation has been provided on general fixed assets. Property, plant and equipment purchased in the Proprietary Fund Types are recorded at cost when purchased. Contributed fixed assets are recorded at fair market value at the date received. Depreciation is provided using the straight-line method. The estimated useful lives of the various classes of depreciable assets are as follows:

Assets Years

Buildings and Improvements 10-40 Utility System 5-50 Equipment 3-20 Vehicles 3-5

M. Wastewater Disposal Rights The City has entered into agreements with nearby utilities for the right to dispose of specified wastewater flows. These agreements require initial payments of capital costs which have been recorded as other assets and are being amortized, using the straight line method over 40 years (maximum life for an intangible asset). Amortization expense for wastewater disposal rights amounted to $143,188 for the fiscal year ended September 30, 2002. N. Amortization of Bond Discount and Issuance Costs In the Enterprise Fund, bond discount and issuance costs are amortized over the life of the bonds using the effective interest method. In the governmental funds, these costs are charged to current expenditures when bonds are issued. O. Compensated Absences It is the City’s policy to grant employees annual leave based upon the number of years of employment with the City. Annual leave may be used as time off or accrued up to a maximum of 240 hours. Upon termination in good standing, the employee can receive a cash benefit for the number of days accrued at the employee’s current wage rate. The City records compensated absences in the Governmental Fund Types as an expenditure for the amount accrued during the year that would normally be liquidated with expendable, available financial resources. The remainder of the liability is reported in the General Long-Term Debt Account Group. Proprietary Fund Types accrue compensated absences in the period they are earned. P. Deferred Revenues Deferred revenues include amounts collected before the revenue recognition criteria are met and receivables which, under the modified accrual basis of accounting, are measurable, but not yet available. The deferred items consist primarily of license and permit revenues collected in advance.


21

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued Q. Contributed Capital Contributed capital consists primarily of donations from federal and state aid programs, developers, and water and sewer stabilization fees charged to customers for initial hookup to the Utility System’s water and sewer lines. R. Encumbrances Encumbrances are recorded in Governmental Fund Types at the time a purchase order or other commitment is issued. Encumbrances outstanding at year-end represent the estimated amount of expenditures to result if unperformed purchase orders and other commitments at year-end are completed. Appropriations lapse at year-end; however, the City generally intends to honor purchase orders and other commitments in process. S. Grants Grants received or used for purposes normally financed through Governmental Fund Types are accounted for within the City’s existing governmental funds. Revenues received or used from grants for Governmental Fund Types are recognized as intergovernmental revenues when they become susceptible to accrual, that is both measurable and available (modified accrual basis). T. Total Columns on Combined Statements Total columns on the combined statements are captioned “Memorandum Only” to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or cash flows in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. NOTE 2 – DEPOSITS AND INVESTMENTS Deposits Deposits consist of demand accounts (interest and non-interest bearing). All deposits with financial institutions were 100% insured by Federal depository insurance or by collateral pursuant to the Public Depository Security Act of the State of Florida. The book balance of the demand deposits and cash on hand was at September 30, 2002 was $3,956,127. Investments The City’s investment policy is governed by local resolution and bond covenants. Allowable investments include: the Florida Local Government Surplus Funds Trust Fund; negotiable direct obligations, or obligations the principal and interest of which are unconditionally guaranteed by the United States government; bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by United States agencies, provided such obligations are backed by the full faith and credit of the United States Government; bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by United States Government agencies which are not full faith and credit agencies; repurchase agreements; bankers’ acceptances; commercial paper; state and/or local government taxable and tax-exempt debt; fixed income mutual funds; and the Florida Counties Investment Trust. The City’s investments at September 30, 2002, are summarized below by type and level of risk assumed. Category 1 includes investments that are insured or registered or for which the securities are held by the City or its Agent in the City’s name. Category 2 includes uninsured and unregistered investments, with securities held by the counterparty’s trust department or agent in the City’s name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty, or by its trust department or agent, but not in the City’s name.


22

NOTE 2 – DEPOSITS AND INVESTMENTS, Continued Throughout the fiscal year the City invested only in types of investments as listed below:

Investment Description

Category 1

Category 2

Category 3

Fair Value

Government Securities $ -- $ 175,600 $ -- $ 175,600 Government Agencies

--

1,982

--

1,982

$

--

$

177,582

$

--

177,582

9,852,868

5,717,385

Local Government Surplus Funds Trust Fund Cash Management Funds Pension Funds Mutual Fund Investments

1,123,561

Total Investments as shown on the Combined Balance Sheet

$

16,871,396

NOTE 3 – RECEIVABLES The following is a detail listing of receivables by the type and by Fund at September 30, 2002: Receivables:

General

Special

Revenue

Debt Service

Enterprise

Total Special Assessments $ 110,857 $ -- $ 110,545 $ -- $ 221,402 Accounts 275,399 56,953 -- 766,271 1,098,623 Unbilled Receivables -- 21,414 -- 366,175 387,589 Interest Receivables 160 -- -- 2,538 2,698 Other Miscellaneous 233,729 -- -- 2,061 235,790 Gross Receivables

620,145

78,367

110,545

1,137,045

1,946,102

Less: Allowance for Uncollectibles

--

--

--

36,460

36,460

Net Total Receivables

$

620,145

$

78,367

$

110,545

$

1,100,585

$

1,909,642

Special assessment receivables are secured by liens placed on the benefited properties at the time of the original assessment. NOTE 4 – INTERFUND ACCOUNTS Individual interfund receivable and payable balances at September 30, 2002 are:

Due from Other Funds

Due to Other Funds

Due To/From Other Funds:

General Fund $ 747,423 $ -- Self-Funded Insurance Fund -- 747,423

Total

$

747,423

$

747,423


23

NOTE 4 – INTERFUND ACCOUNTS, Continued

Advance to Other Funds

Advance from Other Funds

Advance To/Advance From:

General Fund $ 983,832 $ -- Special Revenue Fund:

Community Redevelopment Agency -- 983,832

Total $

983,832

$

983,832

NOTE 5 – RESTRICTED ASSETS The use of certain Utility System Fund assets is restricted by specific provisions of the bond resolution authorizing the issuance of the $13,610,000 Utility System Improvement Refunding Revenue Bonds. In addition, the City restricts funds available for repayment of customer deposits as well as funds required to be placed in special construction accounts. Restricted assets at September 30, 2002 are as follows:

Cash and

Cash Equivalents

Investments

Total

Debt Service Reserve Fund

$ 1,211,518 $ 175,600 $ 1,387,118 Renewal, Replacement and Improvement 453,487 -- 453,487 Bond Sinking Fund 1,069,611 -- 1,069,611 Capital Improvement Fund 3,506,451 -- 3,506,451 Customer Deposits 311,315

-- 311,315

State Revolving Loan Escrow 251,583

-- 251,583

Total Restricted Assets

$ 6,803,965 $ 175,600 $ 6,979,565 NOTE 6 – PROPERTY, PLANT AND EQUIPMENT Changes in General Fixed Assets The following is a summary of changes in the general fixed assets account group during the fiscal year:

Balance

October 1, 2001

Additions

Transfers

And Deletions

Balance

September 30, 2002

Land $ 3,089,840 $ 611,537 $ -- $ 3,701,377 Buildings 6,926,327 35,357 -- 6,961,684 Improvements (other than buildings)

10,610,357 647,570 31,800 11,226,127

Equipment 3,986,796 459,478 107,387 4,338,887 Vehicles 2,886,598 375,202 365,852 2,895,948 Construction in Progress 117,013 709,289 429,275 397,027 Total

$

27,616,931

$

2,838,433

$

934,314

$

29,521,050

Improvements other than buildings includes infrastructure capital assets. The City has been capitalizing these assets since 1970. Infrastructure capital assets acquired prior to 1970 have not been valued or capitalized.


24

NOTE 6 – PROPERTY, PLANT AND EQUIPMENT, Continued Proprietary Fund Fixed Assets Utility System Fund fixed assets at September 30, 2002, consist of the following: Land $ 1,533,893 Building 1,187,435 Water Distribution System 18,830,019 Wastewater Treatment System 17,098,060 Equipment 3,083,355 41,732,762 Less: Accumulated Depreciation 15,565,140 26,167,622 Construction in Progress 1,985,586 Total

$

28,153,208

NOTE 7 – LIABILITIES PAYABLE FROM RESTRICTED ASSETS Liabilities payable from restricted assets at September 30, 2002 are as follows:

Retainage Payable $ 133,502 Accrued Interest Payable 199,627 Customer Deposits 316,452 Current Portion of Bonds Payable 870,000

$

1,519,581 NOTE 8 – LONG-TERM DEBT A. Changes in General Long-Term Debt During the year ended September 30, 2002, the following changes occurred in liabilities reported in the General Long-Term Debt Account Group:

Balance October 1,

2001

Additions

Deletions

Balance September 30,

2002 Compensated Absences $ 512,952 $ 791 $ 22,863 $ 490,880 Capital Leases 214,439 -- 53,610 160,829 Revenue Bonds 2,910,000 -- 135,000 2,775,000 Total

$

3,637,391

$

791

$

211,473

$

3,426,709


25

NOTE 8 – LONG-TERM DEBT, Continued B. Summary of Bond Resolutions The following is a summary of bond resolutions pertaining to the debt reflected on the September 30, 2002 balance sheet. $3,500,000 Sales Tax Revenue Bonds, Series 1995 Type: General Government Revenue Bonds Date: June 1, 1995 Final Maturity: October 1, 2015 Principal Payment Date: October 1 Interest Payment Dates: April 1 and October 1 Interest Rates: 4.75% to 5.65% Reserve requirement: The lesser of: (i) maximum annual debt service for all outstanding bonds; (ii) 125% of the average annual debt service for all outstanding bonds; or (iii) the maximum amount allowed under the Internal Revenue Code in order to maintain exclusion of interest on the outstanding bonds. The reserve requirement has been satisfied through the purchase of municipal bond insurance and a surety bond. Revenue Pledged: Half-cent state sales tax accruing to the City of Casselberry. Purpose: To finance the acquisition of land and the construction of a police station. $13,610,000 Utility System Improvement Refunding Revenue Bonds, Series 1994 Type: Enterprise Fund Revenue Bonds Date: February 15, 1994 Final maturity: October 1, 2010 Principal payment date: October 1 Interest payment dates: April 1 and October 1 Interest rates: 3.00% to 5.25% C. Summary of Bond Resolutions, Continued Reserve requirement: The lesser of: (i) the maximum debt service requirement for the bonds; (ii) 125% of the average annual debt service requirement for all outstanding bonds; or (iii) the maximum amount allowed under the Internal Revenue Code in order to maintain exclusion of interest on the outstanding bonds. The requirement at September 30, 2002 is $1,269,254. Revenue pledged: City’s water, sewer and stormwater drainage system net operating revenues. The pledged revenues at September 30, 2002 are $1,252,774. Purpose: Advanced refunding of the City’s Water and Sewer Revenue Refunding Bonds, Series 1977 and the City’s Junior Lien Water and Sewer System Revenue Bonds, Series 1987, to make payment in full to the City of Orlando for the City’s proportionate share of the cost of the Iron Bridge Wastewater Treatment Plant, and to acquire and construct additions, extensions and improvements to the City’s water, sewer and stormwater drainage system.


26

NOTE 8 – LONG-TERM DEBT, Continued D. Principal and Interest Requirements to Maturity The following represents the debt service requirements to maturity for all bonded indebtedness as of September 30, 2002:

General Long-Term Debt Account Group

Enterprise Fund

Fiscal

Year Ending

September 30

Principal

Interest

Total

Principal

Interest

Total

2003 $ 140,000 $ 143,422 $ 283,422 $ 870,000 $ 399,254 $ 1,269,254 2004 145,000 136,654 281,654 905,000 360,974 1,265,974 2005 155,000 129,529 284,529 950,000 320,249 1,270,249 2006 165,000 121,805 286,805 990,000 276,311 1,266,311 2007 170,000 113,470 283,470 1,030,000 229,286 1,259,286 2008 180,000 104,588 284,588 1,080,000 179,846 1,259,846 2009 185,000 95,188 280,188 1,130,000 125,306 1,255,306 2010 195,000 85,210 280,210 640,000 67,393 707,393 2011 210,000 74,372 284,372 675,000 34,594 709,594 2012 220,000 62,707 282,707 -- -- -- 2013 230,000 50,330 280,330 -- -- -- 2014 245,000 37,088 282,088 -- -- -- 2015 260,000 22,883 282,883 -- -- -- 2016 275,000 7,769 282,769 -- -- --

$2,775,000

$1,185,015

$3,960,015

$8,270,000

$1,993,213

$10,263,213

Less: Current Portion 870,000 Unamortized Issuance Costs 22,144

$7,377,856

E. Summary of Defeased Debt Outstanding The amount of defeased debt still outstanding and not reported on the balance sheet as of September 30, 2002 is as follows:

Year

Defeased

Original

Bond Amount

Defeased Amount

Outstanding

Special Obligation Bonds, Series 1977A 1977 $ 6,015,000 $ 1,465,000 F. Notes Payable South Seminole and North Orange County Wastewater Transmission Authority (SSNOCWTA) During the 1981 fiscal year, the City entered into an interlocal agreement with SSNOCWTA for the construction of wastewater transmission facilities for the transportation of effluent to the City of Orlando Iron Bridge wastewater treatment and disposal facility. SSNOCWTA issued debt to fund the construction and as part of the agreement, the City became liable for its proportionate (35.55%) share of the debt service.


27

NOTE 8 – LONG-TERM DEBT, Continued During fiscal year 1998, SSNOCWTA issued an updated debt service schedule, which indicated the City’s proportionate share of the debt divided between Series A and B bonds for 25.714% and 68.966%, respectively. This resulted in a reduction of the City’s originally calculated share of debt service for $107,242, which was recognized in the City’s Utility System Enterprise Fund as a Gain on Retirement of Debt in fiscal year 1997. Future payments required under the agreement are as follows:

Fiscal Year Ending

September 30

Principal

Interest (3.75% & 4.9%)

Total

2003 (Current Portion) $ 271,508 $ 26,911 $ 298,419 2004 283,240 13,879 297,119

$

554,748

$

40,790

$

595,538

Florida Department of Environmental Protection (FDEP) The City has been awarded loans from the FDEP under the State Revolving Fund loan program to finance the construction of certain wastewater transmission and reclaimed water reuse facilities. The FDEP awarded the City a total of $2,815,410. Of this amount, $285,342 was earmarked for preconstruction costs that were spent as of September 30, 1996 for planning, design and administrative activities related to the project. As of September 30, 2002, the City has repaid $86,422 leaving the unpaid loan balance at $198,921. The remaining $2,525,000 awarded for construction costs was amended in December 1996 by $490,330 and in August 1999 by $400,000 increasing the total award to $3,415,330. In October 2000, the award was further amended by $101,000 increasing the total award to $3,516,330. In April 2002, the loan was amended by ($72,483) and closed out. Monthly draws for the construction loan were submitted to the FDEP as incurred. The City pledged Utility System revenues (operating revenues, plus investment interest earned, net of operating costs and annual payment obligations on the Utility System Improvement Refunding Bonds, Series 1994) to guarantee the repayment of the loans. In October 2001, the City was awarded loans from the Florida Water Pollution Control Financing Corp. under the Clear Water State Revolving Fund loan program to finance construction of wastewater pollution control facilities. The City was awarded a total of $3,258,416 including $250,916 earmarked for preconstruction activities. As with the prior FDEP loan, the City pledged Utility System revenues (operating revenues, plus investment interest earned, net of operating costs and annual payment obligations on the Utility System Improvement Refunding Bonds, Series 1994) to guarantee the repayment of the loans.


28

NOTE 8 – LONG-TERM DEBT, Continued Preconstruction Loan:

Fiscal Year

Ending September 30

Principal

Interest

Total 2003 (Current Portion) $ 13,666 $ 5,064 $ 18,730 2004 14,022 4,708 18,730 2005 14,388 4,342 18,730 2006 14,763 3,967 18,730 2007 15,148 3,582 18,730 2008 15,542 3,188 18,730 2009 15,948 2,782 18,730 2010 16,363 2,367 18,730 2011 16,790 1,940 18,730 2012 17,228 1,502 18,730 2013 17,677 1,053 18,730 2014 18,138 592 18,730 2015 9,248 124 9,372

$

198,921

$

35,211

$

234,132

The semi-annual loan payment is $9,365 due January 1 and July 1 of each year. Construction Loan: The estimated principal amount of the loan is $3,443,847 of which the City has drawn $3,386,412 at September 30, 2002. The balance of the note payable at September 30, 2002 was $2,543,318 of which the current portion is $148,537. The loan is to be repaid in 40 semi-annual payments beginning on January 1, 1997, at a rate of 2.59%. The original semi-annual loan payment was $82,212 based on the total estimated principal amount of the loan. Subsequent semi-annual payments may be adjusted based upon actual project cost and disbursement information and for any overpayment or underpayment associated with the amount of the previous semiannual loan payment. The current semi-annual loan payment is $109,753 due on March 15 and September 15 of each year. The interest portion of each semi-annual loan payment is computed on the unpaid balance of the principal amount of the loan. 2002 Clean Water Loan The estimated principal amount of the loan is $3,314,216 of which the City has drawn $900,058 at September 30, 2002. The balance of the note payable at September 30, 2002 was $900,058 of which the current portion is $76,806. The loan is to be repaid in 40 semi-annual payments beginning on June 15, 2003, at a rate of 1.525%. The future annual payments may be adjusted based upon actual project cost and disbursement information. The loan repayment and interest computation follow the previous FDEP loan terms. Summary of Notes Payable

Current Portion

Long-Term Portion

Total

SSNOCWTA $ 271,508 $ 283,240 $ 554,748 FDEP: Preconstruction Loan 13,666 185,255 198,921 Construction Loan 148,537 2,394,781 2,543,318 2002 Construction Loan 76,806 823,252 900,058 Total Notes Payable

$

510,517

$

3,686,528

$

4,197,045


29

NOTE 9 – EXCESS FUNDS ALLOCATION POLICY The City established a policy that provides uniform guidelines for the allocation of excess Utility System funds if certain thresholds are realized as follows: In the event net income exceeds $500,000, ½ of the excess (amount over $500,000) will be transferred to

the Utility System’s Capital Improvement Account and ½ will be transferred to the General Fund. Any amount of surplus up to $500,000 will remain in the Utility System Fund, but may be transferred to the

Utility System’s Capital Improvement Account for future capital projects, as necessary, to minimize future debt issuance.

During fiscal year 2002, net income did not exceed $500,000 and no funds were transferred in accordance with the City’s policy. NOTE 10 – EMPLOYEE RETIREMENT SYSTEMS All City of Casselberry full-time employees participate in one of three retirement plans offered by the City. Full-time employees hired before January 1, 1996, participate in the Florida Retirement System. Full-time employees hired after January 1, 1996, participate in either the Casselberry Police Officers’ and Firefighters’ Pension Plan or the Casselberry General Employees’ Defined Contribution Retirement Plan. A. The Florida Retirement System The Florida Retirement System (FRS) is a multiple employer, cost sharing, defined benefit, non-contributory retirement system, administered by the State of Florida (State). The FRS provides retirement, disability and death benefits to members. The State issues a publicly available report that includes financial statements and required supplementary information for FRS. That report may be obtained by writing to Florida Retirement Systems, State of Florida, Tallahassee, Florida, 32399-1560. Employer contributions include 0.66% for a post retirement health insurance subsidy. The System also provides disability and survivors’ benefits. Benefits are established by State Statute. FRS members are eligible for retirement after vesting, which occurs at 10 years of creditable service for regular members. Normal retirement age is attained at the earlier of 30 years of creditable service regardless of age, or attainment of age 62 with at least 10 years of creditable service. Early retirement may be taken anytime; however, there is a five percent benefit reduction for each year prior to normal retirement age. Members are also eligible for in-line-of-duty or regular disability benefits if permanently disabled and unable to work. Benefits are computed on the basis of age, average final compensation and service credit. Funding Policy The FRS has four classes of membership that are applicable to the City with descriptions and contribution rates in effect during the period ended September 30, 2002, as follows: Period 10/1/01 to 6/30/02 7/1/02 to 9/30/02 Regular Class–Members not qualifying for other classes. 7.30% 5.76% Special Risk Class–Members employed as law enforcement officers, firefighters, or correctional officers and meet the criteria set to qualify for this class.

18.44%

16.01% Senior Management 9.28% 6.06% Elected Officials

15.14%

11.86%


30

NOTE 10 – EMPLOYEE RETIREMENT SYSTEMS, Continued A. The Florida Retirement System, Continued Funding Policy, Continued Period 10/1/01 to 6/30/02 7/1/02 to 9/30/02 Deferred Retirement Option Program (DROP) – This program began on July 1, 1998

12.67% 9.11%

The contribution requirements of the City are established and may be amended by FRS. The plan is non-contributory for employees with all contributions being the obligation of the City. The City’s contributions to FRS for the years ended September 30, 2002, 2001 and 2000 were $647,606, $757,074, and $1,048,069, respectively. Contributions made were equal to the required contributions for each year. B. The Casselberry Police Officers’ and Firefighters’ Pension Plan

1. Plan Description

The Casselberry Police Officers’ and Firefighters’ Pension Plan (POFPP) was established, and began operations, on January 1, 1996, following approval of State legislation allowing municipalities then participating in the Florida Retirement System to “opt-out” of that system. The establishment of the Plan, and any amendments thereto, are at the sole discretion of the Board of Trustees of the Plan. The Plan is a single-employer, defined benefit, public employee retirement system, and a component unit (reporting as a Pension Trust Fund) of the City’s financial reporting entity. Investments are reported at market value. The Plan does not issue separate financial statements.

The POFPP provides retirement, disability and death benefits to all full-time, certified police officers and firefighters hired by the City after January 1, 1996. The POFPP was established and operates within the parameters of Florida Statutes 175 and 185, which govern police and fire pension plans in the State of Florida. The POFPP is administered by a five-member Board of Trustees (the “Board”). Two members of the Board must be members of the plan elected by a majority of all members of the Plan. Two additional members of the Board are citizens of the City appointed by the City Commission. The fifth, and final, member of the Board is elected by a majority of the other four Board members.

2. Membership

As of October 1, 2001, the date of the latest actuarial valuation, there were 40 active members in the POFPP. There were no retirees or beneficiaries receiving benefits, nor any terminated plan members entitled to, but not yet receiving benefits. The total payroll of the City of Casselberry was $9,553,882 for the fiscal year ended September 30, 2002. Payroll expenditures for employees covered by the Plan were $1,100,457.

3. Funding Policy

Florida Statutes, Chapters 175 and 185 require members to contribute not less than 1% of their annual salary. The Plan, as approved by the City Commission, requires members to contribute 1% of their annual salary. The City is required to contribute at an actuarially determined rate, which includes the State contribution. The current required rate is 0% of annual covered payroll. However, the City contributed $23,103 in fiscal year 2002.

Municipalities that have established pension plans complying with the provisions of Chapters 175 and 185, Florida Statutes, and that have enacted appropriate taxing legislation are eligible to receive revenues generated from excise taxes on gross receipts of certain insurance premiums from policyholders covering property within the City limits.


31

NOTE 10 – EMPLOYEE RETIREMENT SYSTEMS, Continued B. The Casselberry Police Officers’ and Firefighters’ Pension Plan, Continued

These are the Firefighters’ Pension Fund Excise Tax imposed on the gross receipts of property insurance policy premiums and the Police Officers’ Pension Fund Excise Tax imposed on the gross receipts of casualty insurance policy premiums. These revenues, taken as a whole, amounted to $219,601 for the year ended September 30, 2002.

4. Annual Pension Cost

The Board of Trustees of the Plan establishes, and may amend, the contribution requirements of Plan members and the City. The City’s annual pension cost for the current year and related information for the plan is shown below:

POFPP Contribution rates: Employer 0% Employee 1.0% Annual pension cost $ -- City Contributions made: City $ 23,103 Employees 9,551 State Premium Tax Refund 219,601 Total $ 252,255

Actuarial valuation date 10/1/01 Actuarial cost method (1) Aggregate Amortization method N/A Remaining amortization period N/A Asset valuation method Market Value Actuarial assumptions: Investment rate of return (a) 8% Projected salary increases (a) 6% (a) includes inflation at 3% Cost-of-living adjustments 3%

(1) The aggregate actuarial cost method does not identify or separately amortize unfunded actuarial liabilities.

5. 3-Year Trend Information

Three year trend information for the Plan is as follows:

Plan

Fiscal Year

Ending

Annual Pension

Cost (APC)

Percentage Of APC

Contributed

Net Pension

Obligation POFPP 9/30/00 $ -- 100% $ -- 9/30/01 -- 100% -- 9/30/02 -- 100% --


32

NOTE 10 – EMPLOYEE RETIREMENT SYSTEMS, Continued C. Defined Contribution Retirement Plan In February 1998, the City established an employee’s defined contribution plan. All full-time employees, other than certified police officers and firefighters hired after January 1, 1996, are eligible for participation in the plan. All employees were brought into the plan when the General Employees’ Pension Plan terminated in February 1998. The defined contribution plan is administered by Nationwide Retirement Solutions. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. All full-time and regular part-time general employees are eligible to participate upon employment. Employer contributions are vested according to the following schedule: 20% after one year of service and 20% thereafter until fully vested. The City Commissioners establish contributions under the plan. The City contributed $280,821 and $255,408 into the plan during the fiscal years ended September 30, 2002 and 2001, respectively. NOTE 11 – CONTRIBUTED CAPITAL The balance in contributed capital ($18,551,322) of the Utility System Enterprise Fund remained the same for the fiscal year ended September 30, 2002. The City implemented the provisions of GASB Statement #33, Accounting and Financial Reporting for Nonexchange Transactions, during the prior fiscal year. As a result, contributions from developers and customers that were recognized as increases to contributed capital in the equity section have been recognized as an increase to retained earnings in the statement of revenues, expenses and changes in retained earnings for the enterprise fund. The total increase was $251,023 and $1,020,858 for the fiscal years ended September 30, 2002 and 2001, respectively. NOTE 12 – RESERVES OF FUND BALANCES Governmental Fund Types Reserves of fund balances of Governmental Fund Types represent portions of fund balance that are not available to be appropriated for expenditures or which have been segregated for specific future uses. The fund balances reserved in Governmental Fund Types at September 30, 2002 consist of the following: General Fund: Reserve for inventories $ 13,073 Reserve for prepaids 76,051 Reserve for advances to other funds 983,832

$

1,072,956 Special Revenue Funds: Reserve for prepaids: Senior center fund $ 25 Advanced life support fund 7,205 Local Option Gas Tax fund 292 Stormwater utility fund 1,562

$

9,084

Debt Service Fund: Reserved for debt service: Special Assessment Debt $ 140,331


33

NOTE 12 – RESERVES OF FUND BALANCES, Continued Fiduciary Fund Types Reserved fund balance at September 30, 2002 consists of the following: Pension Trust Fund: Reserved for employees’ pension benefits: Police Officers’ and Firefighters’ $ 1,123,561 NOTE 13 – RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City purchases commercial insurance for all types of claims with nominal deductible amounts. The following is a summary of the City’s significant insurance coverage and limitations:

Coverage

Limitations

General/Professional Liability

$100,000 – Each person

(includes errors & omissions; employee benefits $200,000 – Each occurrence program administration; medical attendants’/ $2,000,000 – Combined single limit, per occurrence medical directors malpractice; broad form property damage and extra contractual legal expense) Automobile (includes automobile; uninsured motorists protection; personal injury protection; and automobile physical damage)

$100,000 – Each person $200,000 – Each occurrence $2,000,000 – Combined single limit, per occurrence

Property Damage (includes real and personal property; inland $16,857,671 – Buildings and personal property and electronic data processing and crime/bonds)

$311,057– Inland marine $737,047– Computer equipment and software $50,000 – Crime/ Bonds

Workers Compensation – Statutory

$1,000,000 – Each accident $1,000,000 – Each disease $1,000,000 – Aggregate by disease

There have been no significant reductions in insurance coverage during fiscal year 2002. Settled claims have not exceeded the commercial excess coverage in any of the past three years. The City is structuring a self-insurance program that will become effective in future periods and has established an Internal Service Fund to account for future risk management activities. The fund balance at September 30, 2002, was $4,597, which includes interest income allocated to the fund since inception. NOTE 14 – COMMITMENTS AND CONTINGENCIES South Seminole and North Orange County Wastewater Transmission Authority (SSNOCWTA) The City is a member of the SSNOCWTA which was created, pursuant to an ordinance enacted by the City of Orlando, Florida, to provide a facility for the purpose of transmitting wastewater from the City of Casselberry and other governmental entities to the City of Orlando’s Iron Bridge Facility for treatment. In addition to the City obligation with SSNOCWTA, described in Note 8, the City has agreed to establish and collect from all users of its wastewater collection system charges sufficient to pay the SSNOCWTA for the related costs of operations and maintenance.


34

NOTE 14 – COMMITMENTS AND CONTINGENCIES, Continued Intergovernmental Grants Amounts received or receivable from grantors are subject to audit and adjustment by grantor agencies, principally federal and state government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time, although the City expects such amounts to be immaterial. Litigation Various suits and claims arising in the ordinary course of operations are pending against the City. While the ultimate effect of such litigation cannot be ascertained at this time, in the opinion of legal counsel, the City has sufficient insurance coverage to cover any claims and/or the liabilities that may arise from such action. The effect of such losses would not materially affect the financial position of the City or the results of its operations. NOTE 15 – FUND DEFICITS The following funds have a deficit fund balance at September 30, 2002: Special Revenue Fund – Community Redevelopment Agency (CRA) ($944,566) The fund’s revenue stream from tax increments was not sufficient to cover operating expenditures and capital outlay; therefore, an advance was made since inception of $983,832 from the General Fund to pay for costs of the CRA. An agreement exists between these funds for the reimbursement to be paid over 10 years.

NOTE 16 – SUBSEQUENT EVENTS Series 2002 Sales Tax Revenue Notes On October 15, 2002, The City issued the Series 2002A Sales Tax Revenue Refunding Note in the amount of $2,671,500 and the Series 2002B Sales Tax Revenue Note in the amount of $3,000,000. Both are secured by a pledge of the proceeds from local government half-cent sales tax. The Series 2002A Sales Tax Revenue Refunding Note was issued for the principal purpose of refunding the $3,500,000 Series 1995 Sales Tax Revenue Bonds. The Series 2002B Sales Tax Revenue Note was issued for the principal purpose of financing the acquisition, construction and facilitation of two fire stations within the City. They will be payable semi-annually on April 1 and October 1 of each year through their maturity dates of October 2015 (Series 2002A) and October 2017 (Series 2002B). Series 2002 Utility System Revenue Refunding Note On October 15, 2002, The City issued the Series 2002 Utility System Revenue Refunding Note in the amount of $6,165,000 that is secured by the pledged funds of net revenues from the City’s Utility System. The Series 2002 Utility System Revenue Refunding Note was issued for the principal purpose of refunding the $13,610,000 Series 1994 Utility System Improvement Refunding Revenue Bonds. This Note is payable semi-annually on April 1 and October 1 of each year.

COMBINING, INDIVIDUAL FUND AND ACCOUNT

GROUP FINANCIAL STATEMENTS AND SCHEDULES

35

THIS PAGE INTENTIONALLY LEFT BLANK

36

GENERAL FUND

The General Fund is used to account for resources traditionally associated with governmental operations, which are not required legally or by sound financial management to be accounted for in another Fund.

37

City of Casselberry, FloridaSCHEDULE OF EXPENDITURES AND TRANSFERS OUT- BUDGET AND ACTUAL

GENERAL FUNDFor the Year Ended September 30, 2002

VarianceFavorable

Budget Actual (Unfavorable)GENERAL GOVERNMENTCommission: Personal Services 101,386$ 101,338$ 48$ Operating 21,079 16,238 4,841 Capital Outlay 11,969 10,350 1,619

134,434 127,926 6,508 Administration: Personal Services 251,619 250,467 1,152 Operating 43,014 38,783 4,231 Capital Outlay 7,486 6,744 742

302,119 295,994 6,125 Finance: Personal Services 343,634 335,601 8,033 Operating 123,720 59,622 64,098 Capital Outlay 5,000 2,244 2,756

472,354 397,467 74,887 Data Processing: Personal Services 272,311 272,180 131 Operating 182,794 138,056 44,738 Capital Outlay 44,800 44,346 454

499,905 454,582 45,323 Purchasing: Personal Services 58,998 58,960 38 Operating 7,086 913 6,173 Capital Outlay 2,523 2,522 1

68,607 62,395 6,212 Legal: Operating 1,925,854 1,925,853 1

Personnel: Personal Services 191,607 188,234 3,373 Operating 190,313 140,123 50,190 Capital Outlay 11,969 7,865 4,104

393,889 336,222 57,667 Non-Departmental: Operating 602,205 568,299 33,906

602,205 568,299 33,906 Community Development Planning: Personal Services 381,020 356,007 25,013 Operating 190,930 75,376 115,554 Capital Outlay 60,184 14,697 45,487

632,134 446,080 186,054

Total General Government 5,031,501 4,614,818 416,683

Continued38

City of Casselberry, FloridaSCHEDULE OF EXPENDITURES AND TRANSFERS OUT- BUDGET AND ACTUAL, Continued


VarianceFavorable

Budget Actual (Unfavorable)PUBLIC SAFETYFire Control: Personal Services 1,387,503$ 1,274,612$ 112,891$ Operating 208,845 160,180 48,665 Capital Outlay 675,836 401,660 274,176

2,272,184 1,836,452 435,732 Fire Inspection: Personal Services 149,349 105,191 44,158 Operating 29,839 16,757 13,082 Capital Outlay 20,021 17,077 2,944

199,209 139,025 60,184 Police: Personal Services 3,655,306 3,488,350 166,956 Operating 453,288 387,865 65,423 Capital Outlay 376,712 258,775 117,937

4,485,306 4,134,990 350,316 Communications: Personal Services 557,740 555,406 2,334 Operating 24,205 13,825 10,380 Capital Outlay 82,392 68,502 13,890

664,337 637,733 26,604 Building and Zoning: Personal Services 365,290 306,850 58,440 Operating 61,159 29,720 31,439 Capital Outlay 48,653 41,526 7,127

475,102 378,096 97,006

Total Public Safety 8,096,138 7,126,296 969,842

PHYSICAL ENVIRONMENTEngineering: Personal Services 212,530 211,259 1,271 Operating 123,335 52,118 71,217 Capital Outlay 25,644 17,973 7,671

361,509 281,350 80,159 Solid Waste: Operating 1,061,450 1,018,950 42,500

Total Physical Environment 1,422,959 1,300,300 122,659

TRANSPORTATIONPublic Works: Personal Services 539,769 501,001 38,768 Operating 665,900 554,844 111,056 Capital Outlay 32,645 15,534 17,111

Total Transportation 1,238,314 1,071,379 166,935 Continued

39

City of Casselberry, FloridaSCHEDULE OF EXPENDITURES AND TRANSFERS OUT- BUDGET AND ACTUAL, Continued


VarianceFavorable

Budget Actual (Unfavorable)CULTURE / RECREATIONRecreation: Personal Services 852,972$ 735,440$ 117,532$ Operating 492,642 400,673 91,969 Capital Outlay 246,799 186,811 59,988

Total Culture / Recreation 1,592,413 1,322,924 269,489

HUMAN SERVICESAnimal Control: Personal Services 123,013 119,936 3,077 Operating 14,874 5,335 9,539

Total Human Services 137,887 125,271 12,616

DEBT SERVICENon-departmental: Principal 135,000 135,000 - Interest 150,749 150,749 - Total Non-departmental 285,749 285,749 -

Fire Control Principal 53,610 53,610 - Total Fire Control 53,610 53,610 -

Total Debt Service 339,359 339,359 -

TRANSFERS OUT Operating transfers to: Senior citizen center 104,000 104,000 - Advanced life support 100,000 100,000 -

Total Transfers Out 204,000 204,000 -

Total Expenditures and Transfers Out 18,062,571$ 16,104,347$ 1,958,224$

40


41

SPECIAL REVENUE FUNDS

Special Revenue Funds account for revenues from specific taxes or other earmarked revenue sources which, by law are designated to finance particular functions or activities of government. The City has the following Special Revenue Funds:

Police Education To account for statutory defined law enforcement education expenditures financed by fines levied in accordance with State Statute and local ordinance. Recreation Escrow To account for proceeds received from developers in lieu of dedicating land. Revenues must be used for the purpose of acquiring and developing park and recreation areas. Law Enforcement Trust To account for proceeds obtained through the sale of confiscated and unclaimed property turned over to the City through court judgement. The proceeds are to be used solely for crime fighting purposes. Senior Center To account for proceeds received from rental charges, fees and subsidies received from City residents, businesses and the General Fund. Reserves must be used for the purpose of funding the administrative and maintenance costs associated with the City’s Senior Center. Advanced Life Support To account for proceeds from a special ad valorem tax and other related revenues. Revenues must be used for the purpose of funding the paramedic advanced life support program within the City’s fire department. Local Option Gas Tax To account for proceeds from the City’s share of a six-cent local option gas tax. Revenues must be used to fund related road improvement and maintenance projects. Stormwater Utility To account for revenues and expenditures related to stormwater management, i.e. the collection, storage, treatment and the disbursement of rainwater.

42

SPECIAL REVENUE FUNDS – Continued

Road Impact Fees To account for proceeds received from road impact fees charged on new construction projects. Revenue must be used to fund growth related road projects. Road Construction To account for revenues and expenditures related to an interlocal agreement with Seminole County for certain road improvement projects. Community Redevelopment Agency To account for proceeds from the incremental increase in ad valorem tax revenue collected within the designated community redevelopment area. Revenues must be utilized and expended in accordance with the Community redevelopment plan. Infrastructure Surtax To account for proceeds from Seminole County under the one cent local sales surtax for the City’s transportation improvement projects.

43

City of Casselberry, FloridaCOMBINING BALANCE SHEET

ALL SPECIAL REVENUE FUNDSSeptember 30, 2002

Law Advanced

Police Recreation Enforcement Senior LifeEducation Escrow Trust Center Support

ASSETS

Cash and cash equivalents 42,773$ 125,770$ 81,836$ 48,649$ 481,974$ Receivables - - - - - Due from other governments - - - - 6,017 Prepaids - - - 25 7,205

Total Assets 42,773$ 125,770$ 81,836$ 48,674$ 495,196$

LIABILITIES AND FUND BALANCES

Liabilities: Accounts payable 41$ -$ -$ 3,178$ 151,504$ Due to other governments - - - - 4,135 Accrued liabilities - - - 1,457 39,855 Advances from other funds - - - - -

Total Liabilities 41 - - 4,635 195,494

Fund Balances: Reserved for prepaids - - - 25 7,205 Unreserved/undesignated (Deficit) 42,732 125,770 81,836 44,014 292,497

Total Fund Balances (Deficit) 42,732 125,770 81,836 44,039 299,702

Total Liabilities and Fund Balances 42,773$ 125,770$ 81,836$ 48,674$ 495,196$

44

Local Road CommunityOption Stormwater Impact Road Redevelopment Infrastructure

Gas Tax Utility Fees Construction Agency Surtax Totals

1,611,869$ 995,520$ 322,858$ 4,118$ 52,195$ -$ 3,767,562$ - 78,367 - - - - 78,367

37,771 - - - - 55,907 99,695 292 1,562 - - - - 9,084

1,649,932$ 1,075,449$ 322,858$ 4,118$ 52,195$ 55,907$ 3,954,708$

155$ 1,665$ -$ -$ 12,929$ 55,907$ 225,379$ - - - - - - 4,135

3,041 11,582 - - - - 55,935 - - - - 983,832 - 983,832

3,196 13,247 - - 996,761 55,907 1,269,281

292 1,562 - - - - 9,084 1,646,444 1,060,640 322,858 4,118 (944,566) - 2,676,343

1,646,736 1,062,202 322,858 4,118 (944,566) - 2,685,427

1,649,932$ 1,075,449$ 322,858$ 4,118$ 52,195$ 55,907$ 3,954,708$

45

City of Casselberry, FloridaCOMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCESALL SPECIAL REVENUE FUNDS

For the Year Ended September 30, 2002

Law Advanced

Police Recreation Enforcement Senior LifeEducation Escrow Trust Center Support

REVENUESTaxes -$ -$ -$ -$ 1,003,134$ Intergovernmental revenues - - - - 13,077 Charges for services - - - 12,845 225,803 Fines and forfeitures 14,657 - 15,008 - - Interest 693 1,947 1,200 636 10,972 Miscellaneous revenues - - - 200 5,041 Total Revenues 15,350 1,947 16,208 13,681 1,258,027 EXPENDITURES Current: General government - - - - - Public safety 20,261 - 7,348 - 1,299,337 Physical environment - - - - - Transportation - - - - - Culture/Recreation - - - 107,639 - Total Expenditures 20,261 - 7,348 107,639 1,299,337 Excess of Revenues Over (Under) Expenditures (4,911) 1,947 8,860 (93,958) (41,310) OTHER FINANCING SOURCES Operating transfers in - - - 104,000 - Total Other Financing Sources - - - 104,000 -

Excess of Revenues and Other Financing Sources Over (Under) Expenditures (4,911) 1,947 8,860 10,042 (41,310)

Fund Balances (Deficit) at Beginning of Year 47,643 123,823 72,976 33,997 341,012 Fund Balances (Deficit) at End of Year 42,732$ 125,770$ 81,836$ 44,039$ 299,702$

46

Local Road CommunityOption Stormwater Impact Road Redevelopment Infrastructure

Gas Tax Utility Fees Construction Agency Surtax Totals

446,536$ -$ -$ -$ 153,508$ -$ 1,603,178$ 15,599 - - 35,691 - 55,907 120,274

- 649,951 - - - - 888,599 - - - - - - 29,665

23,890 14,328 4,405 26 255 - 58,352 - 1,341 63,114 - - - 69,696

486,025 665,620 67,519 35,717 153,763 55,907 2,769,764

- - - - 335,750 - 335,750 - - - - - - 1,326,946 - 414,282 - - - - 414,282

195,329 - - 34,784 - 55,907 286,020 - - - - - - 107,639

195,329 414,282 - 34,784 335,750 55,907 2,470,637

290,696 251,338 67,519 933 (181,987) - 299,127

- - - - 100,000 - 204,000

- - - - 100,000 - 204,000

290,696 251,338 67,519 933 (81,987) - 503,127

1,356,040 810,864 255,339 3,185 (862,579) - 2,182,300

1,646,736$ 1,062,202$ 322,858$ 4,118$ (944,566)$ -$ 2,685,427$

47

jromboli


AND CHANGES IN FUND BALANCES - BUDGET AND ACTUALALL SPECIAL REVENUE FUNDS


Police Education Variance

FavorableBudget Actual (Unfavorable)

REVENUESTaxes -$ -$ -$ Intergovernmental revenues - - - Charges for services - - - Fines and forfeitures 20,000 14,657 (5,343) Interest 1,500 693 (807) Miscellaneous revenues - - - Total Revenues 21,500 15,350 (6,150) EXPENDITURES Current: General government - - - Public safety 28,000 20,261 7,739 Physical environment - - - Transportation - - - Culture/Recreation - - - Total Expenditures 28,000 20,261 7,739 Excess of Revenues Over (Under) Expenditures (6,500) (4,911) 1,589 OTHER FINANCING SOURCES Operating transfers in - - - Total Other Financing Sources - - -

Excess of Revenues and Other Financing Sources Over (Under) Expenditures (6,500)$ (4,911) 1,589$ Fund Balances (Deficit) at Beginning of Year 47,643 Fund Balances (Deficit) at End of Year 42,732$

48

Recreation Escrow Law Enforcement Trust Variance Variance

Favorable FavorableBudget Actual (Unfavorable) Budget Actual (Unfavorable)

-$ -$ -$ -$ -$ -$ 225,000 - (225,000) - - -

- - - - - - - - - - 15,008 15,008

1,946 1,947 1 - 1,200 1,200 - - - - - -

226,946 1,947 (224,999) - 16,208 16,208

-

- - - - - - - - - 7,354 7,348 6 - - - - - - - - - - - -

375,000 - 375,000 - - -

375,000 - 375,000 7,354 7,348 6

(148,054) 1,947 150,001 (7,354) 8,860 16,214

- - - - - -

- - - - - -

(148,054)$ 1,947 150,001$ (7,354)$ 8,860 16,214$

123,823 72,976

125,770$ 81,836$

49 Continued


AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL, ContinuedALL SPECIAL REVENUE FUNDS


Senior Center Variance


REVENUESTaxes -$ -$ -$ Intergovernmental revenues - - - Charges for services 9,000 12,845 3,845 Fines and forfeitures - - - Interest 1,000 636 (364) Miscellaneous revenues - 200 200 Total Revenues 10,000 13,681 3,681 EXPENDITURES Current: Transportation - - - Public safety - - - Physical environment - - - Transportation - - - Culture/Recreation 137,266 107,639 29,627 Total Expenditures 137,266 107,639 29,627 Excess of Revenues Over (Under) Expenditures (127,266) (93,958) 33,308 OTHER FINANCING SOURCES Operating transfers in 104,000 104,000 - Total Other Financing Sources 104,000 104,000 -

Excess of Revenues and Other Financing Sources Over (Under) Expenditures (23,266)$ 10,042 33,308$ Fund Balances (Deficit) at Beginning of Year 33,997 Fund Balances (Deficit) at End of Year 44,039$

50

Advanced Life Support Local Option Gas Tax Variance Variance


1,000,000$ 1,003,134$ 3,134$ 300,000$ 446,536$ 146,536$ 17,250 13,077 (4,173) - 15,599 15,599

225,000 225,803 803 - - - - - - - - -

13,300 10,972 (2,328) 35,000 23,890 (11,110) 2,590 5,041 2,451 - - -

1,258,140 1,258,027 (113) 335,000 486,025 151,025

- - - - - - 1,387,664 1,299,337 88,327 - - -

- - - - - - - - - 1,110,425 195,329 915,096 - - - - - -

1,387,664 1,299,337 88,327 1,110,425 195,329 915,096

(129,524) (41,310) 88,214 (775,425) 290,696 1,066,121

- - - - - -

- - - - - -

(129,524)$ (41,310) 88,214$ (775,425)$ 290,696 1,066,121$

341,012 1,356,040

299,702$ 1,646,736$

51Continued




Stormwater Utility Variance


REVENUESTaxes -$ -$ -$ Intergovernmental revenues - - - Charges for services 635,000 649,951 14,951 Fines and forfeitures - - - Interest 25,000 14,328 (10,672) Miscellaneous revenues - 1,341 1,341 Total Revenues 660,000 665,620 5,620 EXPENDITURES Current: Transportation - - - Public safety - - - Physical environment 815,871 414,282 401,589 Transportation - - - Culture/Recreation - - - Total Expenditures 815,871 414,282 401,589 Excess of Revenues Over (Under) Expenditures (155,871) 251,338 407,209 OTHER FINANCING SOURCES Operating transfers in - - - Total Other Financing Sources - - -

Excess of Revenues and Other Financing Sources Over (Under) Expenditures (155,871)$ 251,338 407,209$ Fund Balances (Deficit) at Beginning of Year 810,864 Fund Balances (Deficit) at End of Year 1,062,202$

52

Road Impact Fees Road Construction Variance Variance


-$ -$ -$ -$ -$ -$ - - - 5,212 35,691 30,479 - - - - - - - - - - - - - 4,405 4,405 - 26 26 - 63,114 63,114 - - -

- 67,519 67,519 5,212 35,717 30,505

- - - - - - - - - - - - - - - - - -

545 - 545 34,785 34,784 1 - - - - - -

545 - 545 34,785 34,784 1

(545) 67,519 68,064 (29,573) 933 30,506

- - - - - -

- - - - - -

(545)$ 67,519 68,064$ (29,573)$ 933 30,506$

255,339 3,185

322,858$ 4,118$

Continued53

Community Redevelopment Agency Variance


REVENUESTaxes 150,000$ 153,508$ 3,508$ Intergovernmental revenues - - - Charges for services - - - Fines and forfeitures - - - Interest 6,000 255 (5,745) Miscellaneous revenues - - - Total Revenues 156,000 153,763 (2,237) EXPENDITURESCurrent: General government 406,854 335,750 71,104 Public safety - - - Physical environment - - - Transportation - - - Culture/Recreation - - - Total Expenditures 406,854 335,750 71,104 Excess of Revenues Over (Under) Expenditures (250,854) (181,987) 68,867 OTHER FINANCING SOURCESOperating transfers in 100,000 100,000 - Total Other Financing Sources 100,000 100,000 -

Excess of Revenues and Other Financing Sources Over (Under) Expenditures (150,854)$ (81,987) 68,867$ Fund Balances (Deficit) at Beginning of Year (862,579) Fund Balances (Deficit) at End of Year (944,566)$




54

Infrastructure Surtax Totals Variance Variance


-$ -$ -$ 1,450,000$ 1,603,178$ 153,178$ 600,000 55,907 (544,093) 847,462 120,274 (727,188)

- - - 869,000 888,599 19,599 - - - 20,000 29,665 9,665 - - - 83,746 58,352 (25,394) - - - 2,590 69,696 67,106

600,000 55,907 (544,093) 3,272,798 2,769,764 (503,034)

- - - 406,854 335,750 71,104 - - - 1,423,018 1,326,946 96,072 - - - 815,871 414,282 401,589

600,000 55,907 544,093 1,745,755 286,020 1,459,735 - - - 512,266 107,639 404,627

600,000 55,907 544,093 4,903,764 2,470,637 2,433,127

- - - (1,630,966) 299,127 1,930,093

- - - 204,000 204,000 -

- - - 204,000 204,000 -

-$ - -$ (1,426,966)$ 503,127 1,930,093$

- 2,182,300

-$ 2,685,427$

55


56

ENTERPRISE FUND

Enterprise Funds account for operations that are financed and operated in a manner similar to private enterprise, where the intent of the governing body is that costs of providing goods and services to the general public on a continuing basis be financed or recovered primarily through user charges. The City has the following Enterprise Fund: Utility System To account for the fiscal activities of the City’s water and sewer treatment and distribution operations as well as the funding and payment of related debt.

57

City of Casselberry, FloridaBALANCE SHEET

UTILITY SYSTEM ENTERPRISE FUND

ASSETS

Current Assets Cash and cash equivalents 2,563,895$ Investments 1,982 Accounts receivable 1,134,507 Allowance for estimated uncollectibles (36,460) Accrued interest receivable 2,538 Prepaids 43,991 Inventories 346,379

Total Current Assets 4,056,832

Restricted Assets Cash and cash equivalents 6,803,965 Investments 175,600

Total Restricted Assets 6,979,565

Property, Plant and Equipment Land 1,533,893 Buildings 1,187,435 Water distribution system 18,830,019 Wastewater treatment system 17,098,060 Equipment 3,083,355

41,732,762 Less: Accumulated depreciation 15,565,140

26,167,622 Construction in progress 1,985,586

Total Property, Plant and Equipment 28,153,208

Other Assets Wastewater disposal rights 3,203,727

Total Other Assets 3,203,727

Total Assets 42,393,332$

September 30, 2002

58

LIABILITIES AND FUND EQUITY

Current Liabilities (Payable from Current Assets) Accounts payable 461,026$ Due to other governments 7,293 Capital lease 38,790 Accrued liabilities 200,051 Current portion of notes payable 510,517

Total Current Liabilities (Payable from Current Assets) 1,217,677

Current Liabilities (Payable from Restricted Assets) Retainage payable 133,502 Accrued interest payable 199,627 Customer deposits 316,452 Current portion of bonds payable 870,000

Total Current Liabilities (Payable from Restricted Assets) 1,519,581

Long-Term Liabilities Bonds payable (net of unamortized costs) 7,377,856 Notes payable 3,686,528

Total Long-Term Liabilities 11,064,384

Total Liabilities 13,801,642

Fund Equity Contributed Capital 18,551,323

Retained Earnings: Unreserved 10,040,367

Total Retained Earnings 10,040,367

Total Fund Equity 28,591,690

Total Liabilities and Fund Equity 42,393,332$

59

City of Casselberry, FloridaSCHEDULE OF BUDGETED REVENUES AND EXPENSES - BUDGET AND ACTUAL

UTILITY SYSTEM ENTERPRISE FUND - NON GAAP BASIS(Presented to comply with bond covenants)


VarianceFavorable

Budget Actual (Unfavorable)BUDGETED REVENUES

Water sales 4,450,000$ 3,847,422$ (602,578)$ Wastewater charges 5,200,000 4,967,209 (232,791) Reclaimed water 125,000 118,152 (6,848) Meter installation charges 60,000 41,690 (18,310) Penalties and charges 216,000 227,645 11,645 Miscellaneous income 2,207,269 159,639 (2,047,630) Gain (loss) on disposal of fixed assets 10,000 17,594 7,594 Interest income 434,450 165,174 (269,276)

Total Budgeted Revenues 12,702,719 9,544,525 (3,158,194)

BUDGETED EXPENSES

Administration and operations 4,325,350 2,714,545 1,610,805 Water distribution and wastewater collection 1,486,005 986,665 499,340 Wastewater lift station 689,207 533,762 155,445 Wastewater treatment and disposal 2,386,487 1,984,473 402,014 Drinking water production 1,201,132 921,183 279,949 Interest expense 569,775 532,176 37,599

Total Budgeted Expenses 10,657,956 7,672,804 2,985,152

Excess of Budgeted Revenues Over Budgeted Expenses 2,044,763$ 1,871,721$ (173,042)$

60

GENERAL FIXED ASSET ACCOUNT GROUP

To account for fixed assets other than those accounted for in proprietary and similar trust funds.

61

City of Casselberry, FloridaSCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY

Total LandFunction and Activity

General Government: Administration and budget 5,803,327$ 703,006$ Finance 762,342 - Planning 1,342,898 1,155,434 Total General Government 7,908,567 1,858,440

Public Safety: Police Protection 6,245,945 1,092,560 Fire Protection 2,255,448 263,930 Ambulance 534,822 - Building 72,820 - Total Public Safety 9,109,035 1,356,490

Physical Environment: Public Works 194,253 - Stormwater 796,736 - Engineering 7,237,161 - Total Physical Environment 8,228,150 -

Other: Highways, Streets and Fleet Maintenance 1,084,308 - Parks and Recreation 2,793,963 486,447 Total Other 3,878,271 486,447 Construction in Progress 397,027 -

Total General Fixed Assets 29,521,050$ 3,701,377$

September 30, 2002

62

Improvements Machinery

Other Than and Automotive ConstructionBuildings Buildings Equipment Equipment in Progress

2,334,948$ 2,533,421$ 186,958$ 44,994$ -$ - - 736,797 25,545 - - 42,938 82,501 62,025 -

2,334,948 2,576,359 1,006,256 132,564 -

3,063,213 5,732 1,342,257 742,183 - 408,995 7,250 514,064 1,061,209 -

- - 196,140 338,682 - - - 31,131 41,689 -

3,472,208 12,982 2,083,592 2,183,763 -

194,253 - - - - - 210,571 490,376 95,789 - - 7,027,056 119,985 90,120 -

194,253 7,237,627 610,361 185,909 -

221,753 297,125 259,564 305,866 - 738,522 1,102,034 379,114 87,846 - 960,275 1,399,159 638,678 393,712 -

- - - - 397,027

6,961,684$ 11,226,127$ 4,338,887$ 2,895,948$ 397,027$

63

City of Casselberry, FloridaSCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY

General Fixed General FixedAssets Assets

October 1, Transfers & September 30,2001 Additions Deductions 2002

Function and Activity

General Government: Administration and budget 5,780,372$ 24,959$ 2,004$ 5,803,327$ Finance 740,078 49,112 26,848 762,342 Planning 969,103 376,555 2,760 1,342,898 Total General Government 7,489,553 450,626 31,612 7,908,567

Public Safety: Police Protection 6,115,830 332,692 202,577 6,245,945 Fire Protection 1,995,402 373,974 113,928 2,255,448 Ambulance 394,829 210,097 70,104 534,822 Building 50,199 41,526 18,905 72,820 Total Public Safety 8,556,260 958,289 405,514 9,109,035

Physical Environment: Public Works 194,253 - - 194,253 Stormwater 773,768 22,968 - 796,736 Engineering 6,732,081 508,692 3,612 7,237,161 Total Physical Environment 7,700,102 531,660 3,612 8,228,150

Other: Highways, Streets and Fleet Maintenance 1,088,290 15,534 19,516 1,084,308 Parks and Recreation 2,665,713 173,036 44,786 2,793,963 Total Other 3,754,003 188,570 64,302 3,878,271 Construction in Progress 117,013 709,289 429,275 397,027

Total General Fixed Assets 27,616,931$ 2,838,434$ 934,315$ 29,521,050$


64

City of Casselberry, FloridaSCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY SOURCE

Balance Balance

October 1, Transfers & September 30,2001 Additions Deductions 2002

Land 3,089,840$ 611,537$ -$ 3,701,377$ Buildings 6,926,327 35,357 - 6,961,684 Improvements 10,610,357 647,570 31,800 11,226,127 Equipment 3,986,796 459,478 107,387 4,338,887 Vehicles 2,886,598 375,202 365,852 2,895,948 Construction in Progress 117,013 709,289 429,275 397,027

Total General Fixed Assets 27,616,931$ 2,838,433$ 934,314$ 29,521,050$

Investment in General Fixed Assets:

General Fund 14,747,712$ 1,183,833$ 418,644$ 15,512,901$ Special Revenue Funds 9,145,012 684,080 108,342 9,720,750 Capital Project Funds 3,717,870 968,546 407,328 4,279,088 Donations 6,337 1,974 - 8,311

27,616,931$ 2,838,433$ 934,314$ 29,521,050$


65


66

City of Casselberry, FloridaTABLE 1

GENERAL GOVERNMENTAL REVENUES BY SOURCELast Ten Fiscal Years

(Dollar Amounts are Expressed in Thousands)

Licenses Intergov- Charges Miscell-Fiscal Special and ernmental for Fines & aneousYear Taxes Assessments Permits Revenues Services Forfeitures Interest Revenues Total

2002 8,961$ 19$ 552$ 3,265$ 2,050$ 323$ 187$ 1,707$ 17,064$

2001 8,496 19 704 2,979 2,108 342 436 1,736 16,820

2000 7,911 16 789 4,496 2,100 264 488 1,696 17,760

1999 7,657 25 545 4,044 1,888 335 311 1,374 16,179

1998 7,087 32 449 2,644 1,823 246 344 1,321 13,946

1997 6,544 84 240 2,311 1,813 234 366 1,234 12,826

1996 6,559 66 358 2,405 1,801 301 396 1,193 13,079

1995 6,442 71 246 2,111 1,791 266 325 1,044 12,296

1994 5,991 58 287 1,823 1,541 231 159 1,037 11,127

1993 5,624 88 325 1,759 1,289 235 126 931 10,377

Includes the General Fund, Special Revenue Funds, Debt Service Funds and Capital Projects Funds.

Source: City of Casselberry Finance Department.

67


GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTIONLast Ten Fiscal Years


General PhysicalFiscal Govern- Public Environ- Transpor- Culture/ Human Capital DebtYear ment Safety ment tation Recreation Services Outlay (1) Service Total

2002 4,951$ 8,453$ 1,715$ 1,358$ 1,430$ 125$ 561$ 339$ 18,932$

2001 3,333 7,675 2,090 1,366 1,350 172 81 340 16,407

2000 3,382 7,029 2,225 2,274 1,507 163 654 287 17,521

1999 2,748 6,847 2,292 2,656 1,222 163 180 391 16,499

1998 3,132 6,027 1,838 1,092 918 161 173 396 13,737

1997 3,459 7,235 1,674 1,372 993 168 - 438 15,339

1996 2,150 5,875 1,865 1,561 858 175 1,800 319 14,603

1995 1,997 5,836 1,714 887 735 163 1,490 186 13,008

1994 1,693 5,304 1,335 1,084 774 191 1 154 10,536

1993 1,713 5,016 1,311 900 615 129 141 171 9,996

Includes the General Fund, Special Revenue Funds, Debt Service Funds and Capital Projects Funds.


(1) Capital outlay in this column represents capital expenditures from the Capital Projects Fund only.In accordance with the Florida State Chart of Accounts, expenditures in the General Fundand Special Revenue Funds for personal services, operating and capital outlay are classifiedby Function (i.e General Government, Public Safety, etc.).

68


PROPERTY TAX LEVIES AND COLLECTIONSLast Ten Fiscal Years

TotalCollections as

Fiscal Total a Percent ofYear Tax Levy General Special Total Current Levy

2002 4,165,379$ 2,991,054$ 1,050,499$ 4,041,553$ 97.0%

2001 3,715,136 2,642,103 988,985 3,631,088 97.7%

2000 3,568,088 2,514,724 975,626 3,490,350 97.8%

1999 3,455,147 2,487,755 881,318 3,369,073 97.5%

1998 3,291,721 2,330,147 786,250 3,116,397 94.7%

1997 3,123,224 2,286,419 688,714 2,975,133 95.3%

1996 3,110,867 2,061,983 950,227 3,012,210 96.8%

1995 3,036,203 2,027,003 906,788 2,933,791 96.6%

1994 2,910,209 1,929,798 862,810 2,792,608 96.0%

1993 2,850,064 1,899,122 843,852 2,742,974 96.2%


Tax Collections

69


ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTYLast Ten Fiscal Years


Ratio of TotalFlorida Taxable Dept. of Exemption (2) AssessedRevenue Estimated Estimated Real and Taxable Estimated Value to Total

Fiscal Assessed Assessed Actual Assessed Actual Personal Assessed Actual EstimatedYear Level Value Value (1) Value Value (1) Property Value Value Actual Value

2002 97.7% 939,372$ 961,486$ 91,473$ 93,626$ 201,845$ 829,000$ 1,055,112$ 78.6%

2001 97.8% 868,449 887,985 90,075 92,101 184,524 774,000 980,086 79.0%

2000 99.2% 824,348 830,996 91,257 91,993 172,253 743,352 922,989 80.5%

1999 98.1% 787,905 803,165 83,571 85,190 166,344 705,132 888,355 79.4%

1998 100.0% 751,233 751,233 70,778 70,778 159,214 662,797 822,011 80.6%

1997 99.1% 714,522 721,011 68,702 69,326 152,270 630,954 790,337 79.8%

1996 97.5% 696,791 714,457 68,274 70,025 149,052 616,013 784,482 78.5%

1995 100.0% 671,168 671,168 61,699 61,699 143,313 589,554 732,867 80.4%

1994 100.0% 640,481 640,481 60,697 60,697 140,433 560,745 701,178 80.0%

1993 100.0% 608,894 608,894 59,594 59,594 136,351 532,137 668,488 79.6%

Source: Seminole County Property Appraiser's Office.

(1) Assessed values are based on approximately 90-100 percent of estimated actual value.

(2) Includes the exemptions for Renewable Energy Source, Lands Available for Taxes, Governmental,Widows, Widower's, Disability, Institutional and Homestead as well as property classified asAgricultural.

Real Property Personal Property Total

70


PROPERTY TAX RATESALL DIRECT AND OVERLAPPING GOVERNMENTS

Last Ten Fiscal Years

(Per $1,000 of Assessed Taxable Value)

St. John'sSeminole River Water

Fiscal City of Seminole County ManagementYear Casselberry County School Board District Total

2002 5.000 5.220 09.162 0.462 19.844

2001 4.800 5.107 09.345 0.472 19.724

2000 4.800 5.116 09.541 0.482 19.939

1999 4.900 5.281 09.918 0.482 20.581

1998 4.950 5.363 10.036 0.482 20.831

1997 5.050 5.377 10.337 0.482 21.246

1996 5.150 5.362 10.093 0.482 21.087

1995 5.190 5.384 10.043 0.470 21.087

1994 5.356 6.144 10.071 0.358 21.929

1993 5.358 5.697 10.089 0.358 21.502

Source: Seminole County Tax Collector's Office.

71

FiscalYear

SpecialAssessmentBillings (1)

SpecialAssessment

Collections (2)

2002 19,087$ 31,602$

2001 19,100 24,084

2000 16,308 22,998

1999 25,518 65,667

1998 28,510 77,036

1997 32,698 49,747

1996 29,615 43,785

1995 85,504 69,651

1994 62,459 50,720

1993 70,795 111,145


(1) Includes interest billings only.

(2) Includes prepayments and foreclosures.

72


SPECIAL ASSESSMENT BILLINGS AND COLLECTIONSLast Ten Fiscal Years

Percentage AmountNet General Applicable Applicable

Obligation Bonded To City To CityTaxing District Debt Outstanding Taxpayers (1) Taxpayers

Seminole County School District $25,915,000 4.89% $1,267,244

Seminole County Government $30,970,000 4.89% 1,514,433

$2,781,677

Sources: Seminole County Finance Department.Seminole County School Board.

(1) Based on City's Total Taxable Assessed Value as a percentage of Seminole County's Total Taxable Assessed Value.

September 30, 2002

73


GENERAL OBLIGATION BONDSCOMPUTATION OF OVERLAPPING DEBT


UTILITY SYSTEM REVENUE BOND COVERAGELast Ten Fiscal Years

NetDirect Available

Fiscal Operating Operating For Debt Debt Service RequirementsYear Revenue (1) Expenses (2) Service Principal Interest Total Coverage

2002 9,524,415$ 7,672,804$ 1,851,611$ 870,000$ 399,254$ 1,269,254$ 1.46

2001 9,826,035 7,631,322 2,194,713 840,000 435,374 1,275,374 1.72

2000 10,350,671 7,922,811 2,427,860 805,000 469,184 1,274,184 1.91

1999 9,656,636 7,081,279 2,575,357 775,000 500,959 1,275,959 2.02

1998 10,283,563 7,295,127 2,988,436 755,000 529,649 1,284,649 2.33

1997 9,641,787 6,341,479 3,300,308 730,000 555,929 1,285,929 2.57

1996 10,214,377 6,293,832 3,920,545 670,000 578,039 1,248,039 3.14

1995 9,637,754 6,150,800 3,486,954 585,000 594,419 1,179,419 2.96

1994 8,947,146 5,723,786 3,223,360 340,000 592,738 932,738 3.46

1993 8,004,713 5,696,413 2,308,300 315,000 584,750 899,750 2.57


(1) Operating Revenues are operating revenues plus interest income before capitalization of interest.

(2) Direct Operating Expenses are operating expenses excluding depreciation and amortization expense plus principal and interest payments on the notes payable.

74


DEMOGRAPHIC STATISTICSLast Ten Fiscal Years

SeminoleSchool Enrollment (2) Total County

Fiscal Casselberry Red Bug Sterling Park S. Seminole School UnemploymentYear Population (1) Elementary Elementary Elementary Middle Enrollment Rate (3)

2002 (A) 23,854 774 804 778 1,257 3,613 4.7%

2001 (A) 23,851 808 901 806 1,291 3,806 3.5%

2000 (B) 23,435 881 867 788 1,313 3,849 2.6%

1999 (A) 24,727 884 908 842 1,285 3,919 2.8%

1998 (A) 24,587 850 861 801 1,162 3,674 2.6%

1997 (A) 24,552 857 870 824 1,118 3,669 2.8%

1996 (A) 24,393 931 860 950 1,050 3,791 3.2%

1995 (A) 24,321 935 820 965 1,500 4,220 4.8%

1994 (A) 24,000 970 887 1,028 1,058 3,943 4.8%

1993 (A) 22,816 976 1,189 1,047 1,101 4,313 7.1%

Source: (1) (A) University of Florida, Bureau of Economic and Business Research, "Florida Statistical Abstract". The 1994 population figure is estimatedbased on new residential construction and prior year trends.

(B) Official US Census of Population conducted every ten years. Adjusted upby 806 residents credited to Winter Springs, a grievance has been filed.

(2) Public schools are under the jurisdiction of Seminole County School Board.The enrollment figures reflect the student count in the Casselberry area asof the beginning of the school year, August 2002.

(3) Florida Agency for Workforce Innovation. Preliminary rate at September 2002.

75


PROPERTY VALUE AND CONSTRUCTIONLast Ten Fiscal Years


Value ofProperty Value (1) Construction

Fiscal Total Taxable Total Taxable PermitsYear Property Exemptions Property Issued (2)

2002 1,030,845$ 201,845$ 829,000$ 28,075$

2001 958,524 184,524 774,000 39,875

2000 915,605 172,253 743,352 44,401

1999 871,476 166,344 705,132 26,783

1998 822,011 159,214 662,797 19,697

1997 783,223 152,270 630,953 14,218

1996 765,065 149,052 616,013 13,069

1995 732,867 143,313 589,554 7,404

1994 701,178 140,433 560,745 17,701

1993 668,488 136,351 532,137 17,014

Source: (1) Seminole County Property Appraiser's Office.

(2) City of Casselberry Finance Department.

76


PRINCIPAL TAXPAYERSSeptember 30, 2002

Percent of2001 Total

Type of Assessed Taxable AmountTaxpayer Business Valuation (1) Value of Tax

Casselberry Harbor Inv Inc. Residential $22,202,580 2.68% $440,581

Aetna Life Insurance Co. Residential 20,915,891 2.52% 415,049

Buffalo Casselberry Business Shopping Centers 14,616,869 1.76% 290,053

Inland Southeast Casselberry Shopping Centers 14,382,638 1.73% 285,405

Casselberry - Oxford Assn. Residential 12,346,940 1.49% 245,009

PR II LLC Shopping Centers 11,391,727 1.37% 226,054

Oxford Square LP Shopping Centers 10,769,130 1.30% 213,699

Sprint - Florida Incorporated Telephone 10,498,124 1.27% 208,322

Bright Plantation - Ridglea Assn. Residential 9,685,700 1.17% 192,200

The Glen at Casselberry Ltd. Residential 9,636,530 1.16% 191,224

$136,446,129 16.46% $2,707,596

Source: Seminole County Property Appraiser's Office.

(1) The fiscal year ended September 30, 2002 tax levy is based on the 2001 taxable year.

77


MISCELLANEOUS STATISTICSSeptember 30, 2002

Date of Incorporation 1940

Form of Government Commission - City Manager

Area 7.47 Square Miles

Miles of Streets 65

Fire Protection:Number of Fire Stations 2Number of Firefighters and Officers 37

Police Protection:Number of Police Stations 1Number of Sworn Officers 55

City Water System:Number of Customers 15,120Average Daily Consumption 4.169 MGDNumber of Water Treatment Plants 3Miles of Water Mains 200.25Maximum Daily Plant Capacity - All Plants 18 MGDDeep Wells 9Number of Fire Hydrants 1,169

City Sewer System:Number of Customers 12,404Maximum Daily Treatment Facility Capacity - All Plants 5.000 MGDCurrent Average Flow - All Plants 3.139 MGDMiles of Sanitary Sewer Lines 160.5

Building Permits Issued - Fiscal Year 2002 3,400

Recreation and Culture:Number of Community Parks 2Number of Neighborhood Parks 6Number of Mini Parks 7Park Area 134.5 AcresNumber of Libraries 1Number of Books 156,902

City Employees:Classified Service (All Personnel) 280Exempt 55

Source: City of Casselberry Finance Department. City of Casselberry Engineering Department (Public Works). City of Casselberry Parks and Recreation Department. City of Casselberry Community Development Department. Seminole County Libraries - Casselberry Branch.

78


TAX REVENUES BY SOURCELast Ten Fiscal Years


LocalFiscal Option Franchise Utility OtherYear Property Gas Fees Services Taxes Total

2002 4,148$ 446$ 1,359$ 3,008$ -$ 8,961$

2001 3,631 389 1,752 2,722 2 8,496

2000 3,490 347 1,534 2,529 11 7,911

1999 3,369 342 1,415 2,522 9 7,657

1998 3,173 260 1,388 2,259 7 7,087

1997 3,013 261 1,277 1,985 8 6,544

1996 3,012 245 1,278 2,016 8 6,559

1995 2,935 242 1,368 1,890 7 6,442

1994 2,792 255 1,279 1,657 8 5,991

1993 2,743 279 1,128 1,467 7 5,624

Includes the General Fund and applicable Special Revenue Funds.


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1870 Aloma Avenue

Suite 120 Winter Park, Florida 32789

Tel 407-599-7055 FAX 407-599-7054

5070 A1A North Suite 250




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REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL

REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

The Honorable Mayor and Members of the City Commission City of Casselberry, Florida We have audited the general-purpose financial statements of the City of Casselberry, Florida, as of and for the year ended September 30, 2002, and issued our report thereon dated January 10, 2003. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether the City of Casselberry, Florida’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations and contracts, 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 that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the City of Casselberry, Florida’s internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. This report is intended solely for the information and use of the City Commission, management, federal awarding agencies and the Auditor General of the State of Florida and is not intended to be and should not be used by anyone other than these specified parties.


1870 Aloma Avenue Suite 120

Winter Park, Florida 32789 Tel 407-599-7055 FAX 407-599-7054





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REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH

MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133

The Honorable Mayor and Members of the City Commission City of Casselberry, Florida Compliance We have audited the compliance of the City of Casselberry, Florida with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended September 30, 2002. The City of Casselberry, Florida’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of the City of Casselberry, Florida’s management. Our responsibility is to express an opinion on the City of Casselberry, Florida’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; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 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 occurred. An audit includes examining, on a test basis, evidence about the City of Casselberry, Florida’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the City of Casselberry, Florida’s compliance with those requirements. In our opinion, the City of Casselberry, Florida complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended September 30, 2002. Internal Control Over Compliance The management of the City of Casselberry, Florida is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered the City of Casselberry, Florida’s internal control over compliance with requirements that could have a direct and material effect on a major federal program 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.

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Internal Control Over Compliance - Continued Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. Schedule of Expenditures of Federal Awards We have audited the general-purpose financial statements of the City of Casselberry, Florida as of and for the year ended September 30, 2002, and have issued our report therein dated January 10, 2003. Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements taken as a whole. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by OMB Circular A-133 and is not a required part of the general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general-purpose financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. This report is intended solely for the information and use of the City Commission, management, the federal awarding agencies and the Auditor General of the State of Florida and is not intended to be and should not be used by anyone other than these specified parties.


Federal Grantor/ CFDAPass-through Grantor/Program Title Number

U.S. Department of Environmental ProtectionPassed through Florida Department of Environmental Protection: State Revolving Loan Fund: * 66.458 Balance October 1, 2001 -$ Add: Draws 900,058 Deduct: Repayments - Balance September 30, 2002 900,058$

Federal Grantor/ CFDA FederalPass-through Grantor/Program Title Number Expenditures

U.S. Department of JusticeLocal Law Enforcement Block Grant 16.592 75,503$ Bullet Proof Vest Partnership 16.607 1,125 C.O.P.S. UHP 16.710 125,000

U.S. Department of TransportationState Highway Safety Program 20.600 58,334

U.S. Department of Housing and Urban DevelopmentCommunity Development Block Grant 14.218 561,218

Total Federal Expenditures 821,180$

* Major Federal Financial Assistance Program - As stated in loan agreement, must be considered a major program.

City of Casselberry, FloridaSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


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City of Casselberry, Florida SCHEDULE OF FINDINGS AND QUESTIONED COSTS

For the Year Ended September 30, 2002 Section I–Summary of Auditor’s Results Financial Statements Type of auditor’s report issued: Unqualified Internal control over financial reporting: § Material weakness(es) identified? Yes X No § Reportable condition(s) identified that are not considered to be material weaknesses? Yes X None reported Noncompliance material to financial statements noted. Yes X No Federal Awards Internal control over major federal programs: § Material weakness(es) identified? Yes X No § Reportable condition(s) identified that are not considered to be material weaknesses? Yes X None reported Type of auditor’s report issued on compliance for major federal programs: Unqualified Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A-133? Yes X No Identification of major federal programs: CFDA Number Name of Federal Program

14.218 Community Development Block Grant 16.710 C.O.P.S. UHP Grant 66.458 State Revolving Loan Fund

Dollar threshold used to distinguish between type A and type B programs: $300,000 Auditee qualified as low-risk auditee? ____X__ Yes ______ No Section II–Financial Statement Findings None Section III–Federal Award Findings and Questioned Costs None

1870 Aloma Avenue Suite 120

Winter Park, Florida 32789 Tel 407-599-7055 FAX 407-599-7054





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MANAGEMENT LETTER

The Honorable Mayor and Members of the City Commission City of Casselberry, Florida

We have audited the general-purpose financial statements of the City of Casselberry, Florida, as of and for the fiscal year ended September 30, 2002, and have issued our report thereon dated January 10, 2003.

We conducted our audit in accordance with auditing standards generally accepted in the United States and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. We have issued our report on compliance and internal control over financial reporting, report on compliance and internal control over compliance applicable to the major federal awards programs, and schedule of findings and questioned costs. Disclosures in those reports and schedule, which are dated January 10, 2003, 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. Those rules (Section 10.554(1)(g) 1.a.) require that we address in the management letter, if not already addressed in the auditor’s reports on compliance and internal controls or schedule of findings and questioned costs, whether or not inaccuracies, irregularities, shortages, defalcations, fraud, and/or violations of laws, rules, regulations, and contractual provisions reported in the preceding annual financial audit report have been corrected. There were no inaccuracies, irregularities, shortages, defalcations, fraud, and/or violations of laws, rules, regulations, and contractual provisions disclosed in the preceding annual report.

The Rules of the Auditor General (Section 10.554(1)(g) 1.b.) require that we address in the management letter, if not already addressed in the auditor’s reports on compliance and internal controls or schedule of findings and questioned costs, whether or not recommendations made in the preceding annual financial audit report have been followed. There were no recommendations made in the preceding annual financial audit report.

As required by the Rules of the Auditor General (Section 10.554(1)(g) 2.), the scope of our audit included a review of the provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection with our audit, we determined that the City of Casselberry, Florida complied with Section 218.415, Florida Statutes.

The Rules of the Auditor General (Section 10.554(1)(g) 4.) require disclosure in the management letter of the following matters if not already addressed in the auditor’s reports on compliance and internal controls or schedule of findings and questioned costs: (1) violations of laws, rules, regulations, and contractual provisions that have occurred, or are likely to have occurred; (2) improper or illegal expenditures; (3) improper or inadequate accounting procedures (e.g., the omission of required disclosures from the financial statements); (4) failures to properly record financial transactions; and (5) other inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditor. Our audit disclosed no such matters.

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Though nothing was found with regard to the items enumerated in the preceding paragraph, we do offer the following recommendations:

Capitalization Policy for Capital Assets The City of Casselberry (“the City”) will be implementing a significant part of the new financial reporting requirements as set forth in the Governmental Accounting Standards Board Statement No. 34 for the fiscal year ended September 30, 2003. Under this new reporting standard, the City will be required to identify and depreciate capital assets for governmental activities at the entity wide level. In addition, the City will need to identify infrastructure capital assets (roads, bridges, etc.) owned and maintained by the City and will be required to depreciate these assets as well. We recommend the City establish a capitalization policy, for reporting purposes, for all governmental capital assets currently accounted for in the general fixed asset account group. Consideration should be given to establishing $1,000 as the threshold for capitalizing these capital assets. Once the City has identified all infrastructure owned, a capitalization policy should be established that is reasonable. A much higher capitalization threshold should be established and criteria for capitalization defined.

As required by the Rules of the Auditor General (Section 10.554(1)(e) 2.), the scope of our audit included a review of the provisions of Section 218.503(1), Florida Statutes, regarding financial emergencies. In connection with our audit, we determined that the City of Casselberry, Florida is not in a state of financial emergency as a consequence of the conditions described in Section 218.503(1), Florida Statutes.

As required by the Rules of the Auditor General (Section 10.554(1)(e) 3.), we determined that the annual financial report for the City of Casselberry, Florida for the fiscal year ended September 30, 2002, filed with the Department of Banking and Finance pursuant to Section 218.32, Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2002.

As required by the Rules of the Auditor General (Sections 10.554(g)(6) c. and 10.556), we applied financial condition assessment procedures. It is management’s responsibility to monitor the entity’s financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by the same. This management letter is intended solely for the information of the City Commission, management, federal awarding agencies and the Auditor General of the State of Florida and is not intended to be and should not be used by anyone other than these specified parties.


city of casselberry, floridapublicrecords.casselberry.org/weblink/0/edoc/249376/2002 cafr.pdf ·...

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