City of Coral Springs, Florida

Transcription

1 Comprehensive Annual Financial Report Fiscal Year Ended September 30, 2009 PREPARED BY THE DEPARTMENT OF FINANCIAL SERVICES

2 CITY OF CORAL SPRINGS, FLORIDA Comprehensive Annual Financial Report Fiscal year ended September 30, 2009 PREPARED BY THE DEPARTMENT OF FINANCIAL SERVICES DIRECTOR OF FINANCIAL SERVICES..DAVID L. RUSSEK CITY CONTROLLER..KIM MOSKOWITZ

3 CITY OF CORAL SPRINGS, FLORIDA COMMISSION-MANAGER FORM OF GOVERNMENT CITY COMMISSION MAYOR VICE MAYOR COMMISSIONER COMMISSIONER COMMISSIONER SCOTT J. BROOK VINCENT M. BOCCARD ROY GOLD CLAUDETTE BRUCK TOM POWERS CITY MANAGER MICHAEL S. LEVINSON CITY ATTORNEY CITY CLERK SAMUEL S. GOREN PETER M. J. RICHARDSON FINANCIAL SERVICES DIRECTOR OF FINANCIAL SERVICES CITY CONTROLLER DAVID L. RUSSEK KIM MOSKOWITZ

4 Table of Contents Introductory Section (unaudited) Letter of Transmittal Certificate of Achievement for Excellence in Financial Reporting Organizational Chart List of Principal Officials i ix x xi Financial Section Independent Auditor s Report 1 2 Management s discussion and analysis (Unaudited) 3 18 Basic financial statements: Government-wide financial statements: Statement of net assets 19 Statement of activities Fund financial statements: Governmental funds: Balance sheet Reconciliation of the balance sheet of governmental funds to the statement of net assets 24 Statement of revenue, expenditures and changes in fund balances Reconciliation of the statement of revenue, expenditures and changes in fund balances of governmental funds to the statement of activities 27 Proprietary funds: Statement of net assets Statement of revenue, expenses and changes in fund net assets 30 Statement of cash flows Fiduciary funds: Statement of net assets 33 Statement of changes in net assets 34 Notes to financial statements Required supplementary information (Unaudited): Schedule of revenue, expenditures and changes in fund balances budget and actual (budgetary basis) General Fund 79 Schedule of revenue, expenditures and changes in fund balances budget and actual (budgetary basis) Fire Special Revenue Fund 80 Schedule of revenue, expenditures and changes in fund balances budget and actual (budgetary basis) Coral Springs Charter School 81 Special Revenue Fund Schedule of funding progress 82 Schedule of employer contributions 83 Notes to required supplementary information Supplementary Information: Combining and individual fund statements and schedules: Nonmajor special revenue and capital projects funds: Combining balance sheet Combining statement of revenue, expenditures and changes in fund balances 91 93

5 Table of Contents Financial Section (Continued) Schedules of revenue, expenditures and changes in fund balances budget and actual: Debt Service Fund Major 94 Public Art Special Revenue Fund Nonmajor 95 Conference Center Special Revenue Fund Nonmajor 96 Enterprise Funds: Water and Sewer Fund Schedule of revenue and expenses (budgetary basis) compared to budget 97 Coral Springs Center for the Arts Fund Schedule of revenue and expenses (budgetary basis) compared to budget 98 Internal Service Funds: Combining statement of net assets 100 Combining statement of revenue, expenses and changes in fund net assets 101 Combining statement of cash flows Self-Insurance Fund Schedule of revenue and expenses (budgetary basis) compared to budget 104 Equipment Services Fund Schedule of revenue and expenses (budgetary basis) compared to budget 105 Fiduciary Funds: Combining statement of net assets Combining statement of changes in net assets Statistical Section (unaudited) Government-wide information: Table 1 Net assets by component 111 Table 2 Changes in net assets Fund information: Table 3 Fund balances, governmental funds Table 4 Changes in fund balances, governmental funds Table 5 Tax revenues by source, governmental funds 118 Table 6 Total taxable assessed value as a percentage of estimated total fair market value Table 7 Direct and overlapping property tax rates Table 8 Principal property taxpayers 123 Table 9 Property tax levies and collections 124 Table 10 Water sold by type of customer 125 Table 11 Water and sewer rates 126 Table 12 Ratios of outstanding debt by type Table 13 Ratios of general bonded debt outstanding 129 Table 14 Direct and overlapping governmental activities debt 130 Table 15 Legal debt margin information 131 Table 16 Pledged-revenue coverage 132 Table 17 Demographic and economic statistics 133 Table 18 Principal employers 134 Table 19 Full-time equivalent city government employees by function 135 Table 20 Operating indicators by function 136 Table 21 Capital asset statistics by function 137

6 Table of Contents Compliance Section Independent Auditor s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Independent Auditor s Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A Schedule of Expenditures of Federal Awards 142 Notes to Schedule of Expenditures of Federal Awards 143 Schedule of Findings and Questioned Costs Summary Schedule of Prior Audit Findings 146

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9 Each discretely presented component unit is reported in a separate column in the government-wide financial statements to emphasize that it is legally separate from the government. Accordingly, the City s Community Redevelopment Agency ( CRA ) is a discrete component unit of the City. Information Useful in Assessing the Government s Economic Condition The City operates under a Commission-Manager form of government, comprised of five elected officials, (the Mayor and four Commissioners). The City Commission determines policy, adopts legislation, and approves the City s annual budget. The City Commission also appoints the City Manager, who as the Chief Administrative Officer is charged with the responsibility of enforcing all ordinances and resolutions passed by the City Commission. The City s average household is made up of 3.03 persons based on the American Community Survey. The total taxable assessed value of both real and personal property in fiscal year 2009 was $9.801 billion. Singlefamily real estate taxes on a house with a save our homes assessed value of $230,133 during the year were $4,375 including homestead exemption, of which about 18.6%, or $814, represents City property taxes. The City s unemployment rate as of September 2009 is 8.8% as compared to Broward County s 9.8% and Florida s 11.3%. During fiscal year 2009, an unrelated organization, the Coral Springs Economic Development Foundation (EDF), worked diligently to assist clients with development services necessary to encourage commercial/industrial development and build-out in a very difficult market. For example, ProLogis completed construction on two 100,000 square foot buildings in the Corporate Park of Coral Springs and is currently leasing this space. The EDF also assisted seven other companies with tenant improvement build-outs, thus resulting in an additional 1,313,695 square feet of leased space with a total value of $31,845,028. The EDF was instrumental with City Staff in developing the Coral Springs Preferred Client Program, where eligible clients are able to receive specialized service based on their project s ability to create a significant economic impact to the City and create new, high-wage employment opportunities in specific targeted industries. Also, the EDF in conjunction with the Corporate Park Property Owners Association worked with City staff and completed proposed changes to the Land Development Code, which provide redevelopment opportunities in the Corporate Park. The EDF continues to move forward in accomplishing its own as well as the City s mission. The combined efforts have resulted in an increase in the City s 2008 tax year total assessed value for commercial/industrial properties of $139 million. Major Initiatives The City Commission reviews and updates the City s Strategic Plan on a biennial basis. This process is designed to identify the issues that must be addressed to achieve the City s mission (to be the nation s premier community in which to live, work and raise a family) and that will persist over the lifetime of the Strategic Plan. The City s seven strategic priorities include the following: Customer-involved government Financial health and economic development Excellence in education Neighborhood and environmental vitality Youth development and family values Strength in diversity Traffic, mobility and connectivity ii

10 For each priority, an action plan is developed for implementing policy and operating measures. Through this process, the City s business plan is developed as follows: Commission priorities identify the vital issues Key intended outcomes (KIOs) identify desired results Initiatives allocate activities, resources, personnel, and time planned for the year to achieve each KIO Performance measures obtain specific and measurable data indicating the effectiveness in meeting the KIOs By setting targets (KIOs) the City is able to determine the resources necessary to meet them. The City s staff is charged with the day-to-day operations and is involved in a variety of projects, which are in accordance with the City s strategic plan. These projects reflect the City s commitment to its mission. Projects for Fiscal Year 2009 Created the CSBizAssist program to provide a comprehensive support resource for business owners. Launched BuyCS.org website attracting over 200 registered businesses and organized the first Buy Coral Springs Day. Launched and promoted the Coral Springs Experience featuring a dedicated microsite CSExperience.org, maps of over 150 locations to visit and events to experience, and write-ups and photos of locations online. Implemented the Sustainability Index and Carbon Footprint Lite that measures the greening of City operations. Established purchase assistance and housing rehabilitation programs for low to moderate-income households under the federal Neighborhood Stabilization Program. Began the construction phase of the Public Safety Improvement project. This project provides additional space and security enhancements at the existing facility for both the Police and Fire departments. Completed replacement of two raw water wells. Completed rehabilitation of lift stations 20 A & B. Completed Phase 1 improvements to the Water Treatment Plant. Installed an emergency generator at the Fire Training Center. Completed the expansion of the Incredible Ice third ice pad and training facility for the NHL Florida Panthers. Installed sports lighting energy saving devices on the court lights at the Tennis Center. Created a Master Tree Planting Plan for planting trees on City-owned facilities. iii

11 Completed construction of Whispering Woods Park. Completed renovation projects at Mullins, Cypress and North Community Parks. Future Projects Complete the Master Plan for infrastructure improvements at the intersection of University Drive and Sample Road. Begin piloting red light cameras at major intersections within the City. Complete construction of the Public Safety Improvement project. Complete architectural and engineering design work and begin construction on a new fire station. Complete the installation of two raw water wells. Begin construction of Phase 2 improvements on the Water Plant. Begin renovations to the Westside maintenance compound to house the carpenter shop and vehicle service bay. Begin improvements to the Water Distribution System to enhance water pressure. Make improvements to existing bike paths and sidewalks. Install an energy efficient air conditioning system at the Charter School. Replace the 600-wing roof at the Charter School. Over the next two years, plant trees in public parks and City facilities in accordance with the Master Tree Planting Plan resulting in over 1,000 additional trees in our City. Resurface outdoor basketball and tennis courts at all parks. iv

12 Financial Information Budgeting and Accounting Management of the City is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America. The internal control structure is designed to provide reasonable, but not absolute assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. Single Audit As a recipient of federal, state, county and local financial assistance, the City is also responsible for ensuring that adequate internal controls are in place to ensure compliance with applicable laws and regulations related to those programs. The internal control structure is subject to periodic evaluation by management. The City is required to undergo an annual single audit performed under the provisions of the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non-Profit Organizations. As a part of the City s Single Audit, tests were made to determine the adequacy of the City s internal controls and of its compliance with applicable laws and regulations, including those related to federal assistance programs. Included as a separate report is the information related to the Single Audit, which includes the schedule of expenditures of federal awards, findings and recommendations and auditors reports on the internal control and compliance with applicable laws and regulations. This report discloses no instances of material weaknesses in internal control over financial reporting or significant violations of applicable laws and regulations. Budgetary Controls The City maintains budgetary controls for the General Fund, Fire Fund, Charter School Fund, Debt Service Fund, Public Arts Fund, Conference Center Fund and all Proprietary Funds. The objective of these controls is to ensure compliance with legal provisions embodied in the annual budget adopted by the City Commission. Activities of the General Fund, Fire Fund, Charter School Fund, Debt Service Fund, Public Arts Fund, Conference Center Fund and all Proprietary Funds are included in the annual budget. Project-length financial plans are adopted for the Capital Projects Funds and the Special Revenue Grants Fund. The legal level of control (such as, the level at which actual expenditures and transfers out cannot legally exceed the budget appropriations) is maintained at the fund level. The City also maintains an encumbrance accounting system as one method of maintaining budgetary control. Encumbered accounts lapse at year-end for the General Fund and Special Revenue Funds. As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management. Risk Management The goal of risk management is to qualify and quantify exposures that can weigh upon the City s assets and to affect necessary action to eliminate and reduce losses within the City. 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 s Self-Insurance Internal Service Fund is used to account for and finance both uninsured and insured risks of loss. Coverage is provided for auto liability (excess liability contract with a $25,000 self-insured retention (SIR) and an aggregate stop loss of $3,000,000); general liability ($25,000 SIR and a deductible stop loss of $904,098); property ($100,000 SIR); health and dental ($275,000 SIR and an aggregate stop loss of $9,317,285) and workers compensation as specified by applicable federal and state statutes. v

13 In the areas of boiler and machinery, bonding, special events and other exposures, the City does transfer risk to private sector commercial insurance carriers wherever possible. A review of the City s exposures, coupled with monitoring of conditions within the insurance industry, allows risk management to update protection strategies through the acquisition of specific and excess coverage where warranted. Employees Retirement Systems The City s retirement system includes three separate single-employer defined benefit plans included in the Pension Trust Funds, which separately cover the general employees, sworn police officers, and firefighters. In addition, the City has six defined contribution plans contracted with the International City Management Associated Retirement Corporation for which the City acts as an agent on behalf of employees. The City also has a pension plan for the city commissioners and a defined contribution plan for volunteer firefighters. At October 1, 2008, the general employees defined benefit plan was funded at 70.6% of the actuarial accrued liability. At October 1, 2008, the police officers defined benefit plan was funded at 89.9% of the actuarial accrued liability. As of October 1, 2008, the firefighters defined benefit plan was funded at 71.6%. Contributions by both the City and employees to the two general employees, the three management, and the City Manager s defined contribution plans were $2,607,809, $707,921 and $57,294, respectively, for fiscal year Contributions by both the City and employees to the general employees, police officers, and firefighters defined benefit pension plans were $543,282, $7,950,556, and $3,210,456, respectively, for fiscal year Debt Administration At September 30, 2009, the City had a number of debt issues outstanding. These issues included $13,500,000 of General Obligation Bonds; $9,025,000 of General Obligation Refunding Bonds; $10,260,000 in Water and Sewer Revenue Refunding Bonds; $2,501,507 in State Revolving Fund loans: $15,790,000 in Franchise Revenue Refunding Bonds and $15,785,000 in Capital Revenue Refunding Bonds as detailed in Note 7 to the basic financial statements. The City continues to maintain its excellent credit ratings on all of its bond issues. General Obligation Bonds are rated AAA by Fitch Ratings Service, Aaa by Moody s Investors Service and AAA by Standard and Poor s. Water and Sewer Revenue Refunding Bonds (uninsured) are rated AAA and Aa2 by Fitch Ratings Service and Moody s Investors Service, respectively. The Franchise Revenue Refunding Bonds are rated AA+ by Fitch Ratings Service, have a rating of Aa2 according to Moody s Investor Service and AA according to Standard and Poor s. The Capital Revenue Refunding Bonds are rated AA+ by Fitch Ratings Service, have a rating of Aa1 according to Moody s Investor Service and AA+ according to Standard and Poor s. As of September 30, 2009, the City s net bonded debt per capita is $ and its total direct long-term bonded debt payable from general revenue is $54,100,000 or $ per capita. Cash Management Cash temporarily idle during the year was invested as follows: 75.90% in fixed income securities (includes U.S. government securities, mortgage-backed pass throughs, corporate bonds, U.S. treasury money market funds and taxable municipals),.19% in the State Board of Administration of Florida Local Government Pooled Investment Account, 19.06% in cash and cash equivalents and 4.85% in demand deposits and overnight investment sweep facility. The average yield on maturing investments during the year was 3.56%. This analysis pertains only to the surplus cash for which the City has daily cash management responsibility; therefore, it excludes all pension plan investments. vi

14 Awards, Acknowledgements and Other Information Independent Audit State statutes require an annual audit by independent certified public accountants. The City selected the accounting firm of McGladrey and Pullen, LLP. In addition to meeting the requirements set forth in state statutes, the audit also was designed to meet the requirements of the federal Single Audit Act of 1984 as amended by the Single Audit Act Amendments of 1996 and the related U.S. Office of Management and Budget s Circular A-133. Auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards were used by the auditors in conducting their engagement. The auditor s report on the basic financial statements and combining and individual fund statements and schedules is included in the financial section of this report. The auditor s reports on internal controls and compliance with applicable laws and regulations are included in the Single Audit section. Awards The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Coral Springs for its comprehensive annual financial report for the fiscal year ended September 30, This was the thirtieth consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, the City must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both accounting principles generally accepted in the United States of America and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. In addition, the City also received the GFOA Award for Distinguished Budget Presentation for its annual budget for the eighteenth consecutive year. vii

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18 CITY OF CORAL SPRINGS, FLORIDA List of Principal Officials September 30, 2009 Title Mayor Vice Mayor Commissioner Commissioner Commissioner City Manager Deputy City Manager Deputy City Manager City Attorney City Clerk Director of Aquatics Services Director of Communications and Marketing Director of Community Development Director of Development Services Director of Financial Services Director of Human Resources Director of Information Services Director of Parks & Recreation Director of Public Works Executive Director of Sportsplex Fire Chief Police Chief Name Scott J. Brook Vincent M. Boccard Roy Gold Claudette Bruck Tom Powers Michael S. Levinson Ellen Liston Erdal Dönmez Samuel S. Goren Peter M. J. Richardson Mike McGoun Christine Verdi-Sarwar Susan M. Hess Larry Staneart David L. Russek Susan L. Grant Bryan Sastokas Rick Engle Richard Michaud Thomas Messenheimer Mark Curran Duncan Foster xi

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20 Independent Auditor s Report The Honorable Mayor, Members of the City Commission, and City Manager City of Coral Springs, Florida We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund and the aggregate discretely presented component unit and remaining fund information of the City of Coral Springs, Florida (the City ) as of and for the year ended September 30, 2009, which collectively comprise the City s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City s management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund and the aggregate discretely presented component unit and remaining fund information of the City of Coral Springs, Florida as of September 30, 2009, and the respective changes in financial position and, where applicable, cash flows thereof 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 February 18, 2010 on our consideration of the City s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. McGladrey & Pullen, LLP is a member firm of RSM International, an affiliation of separate and independent legal entities. 1

21 The management s discussion and analysis ( MD&A ) and budgetary comparison information for the general fund, fire special revenue fund, and Coral Springs Charter School special revenue fund, schedule of funding progress and schedule of employer contributions, are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City s basic financial statements. The accompanying introductory section, combining and individual fund statements and schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. Additionally, the accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Nonprofit Organizations, and is not a required part of the basic financial statements. The combining and individual fund statements and schedules and Schedule of Expenditures of Federal Awards have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and, accordingly, we express no opinion on them. Fort Lauderdale, Florida February 18,

22 Management s Discussion and Analysis (Unaudited) As management of the City of Coral Springs, Florida (the City ), we offer readers of the City s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended September 30, Since the management s discussion and analysis ( MD&A ) is designed to focus on the current year s activities, resulting changes and current known facts, please read it in conjunction with the transmittal letter and the City s financial statements. Financial Highlights The assets of the City exceeded its liabilities at the close of fiscal year 2009 by approximately $252,147,000 (net assets). Of this amount, approximately $88,100,000 (unrestricted net assets) may be used to meet the City s ongoing obligations to citizens and creditors. The City s total net assets increased by approximately $7,700,000 during the current fiscal year. The City s net assets increased as a result of this year s operations. At the end of the current fiscal year, unreserved fund balance for the General Fund was approximately $24,738,000 or 29% of total General Fund expenditures. The City s total debt decreased by approximately $3,098,000 (4.4%) during the current fiscal year. The key factors in this decrease are the current year payments of principal offset by current year borrowings on State Revolving Loans. The General Fund s total fund balance decreased by approximately $1,667,000 for the year ended September 30, Overview of the Financial Statements This financial section of the comprehensive annual financial report consists of the following: independent auditor s report, management s discussion and analysis (this section), the basic financial statements, required supplementary information and a section that presents combining and individual fund statements and schedules. The basic financial statements include the following two kinds of statements that present different views of the City: Within the government-wide financial statements, there are two statements that provide both long-term and short-term information about the City s overall financial status. The fund financial statements focus on individual parts of the City government, reporting the City s operations in more detail than the government-wide statements. o o o The governmental fund statements tell how general government services, such as public safety, were financed in the short-term, as well as what remains for future spending. Proprietary Fund statements offer short-term and long-term financial information about the activities the government operates like businesses, such as the water and sewer utility. Fiduciary Fund statements provide information about the financial relationships, such as the retirement plans for the City s employees, in which the City acts solely as a trustee or agent for the benefit of others, to whom the resources in question belong. 3

23 Management s Discussion and Analysis (Unaudited) The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The statements are followed by a section of required supplementary information that explains and supports the information in the financial statements. The required supplementary information includes a schedule of budget to actual comparisons for the General Fund. Figure 1 shows how the required parts of this annual report are arranged and relate to one another. In addition to these required elements, we have included a section with combining statements that provide details about nonmajor governmental funds, each of which are added together and presented in a single column in the basic financial statements. Combining statements are also presented for the Fiduciary Funds. Individual Internal Service Funds statements are also included, reflecting balances prior to their elimination from the government-wide financial statements, to avoid a doubling-up effect within the governmental and business-type activities columns of said statements. Required Components of the City s Comprehensive Annual Financial Report Management s Discussion and Analysis Basic Financial Statements Required Supplementary Information Government-wide Financial Statements Fund Financial Statements Notes to the Financial Statements Summary Detail 4

24 Management s Discussion and Analysis (Unaudited) Government-wide Financial Statements The Government-wide financial statements are designed to provide readers with a broad overview of the City s finances in a manner similar to a private-sector business. The statement of net assets presents information on all of the City s assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City s net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenue and expenses are reported in this statement from some items that will only result in cash flows in future fiscal periods (for example, uncollected taxes and compensated absences). Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenue (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, police, fire, parks and recreation, public works, development services, educational and cultural programs, and conference center. The business-type activities of the City include water and sewer and the Center for the Arts. The government-wide financial statements include not only the City of Coral Springs itself (the primary government), but also the Community Redevelopment Agency ( CRA ). Financial information for the CRA component unit is discretely presented and is reported in a separate column in the government-wide financial statements to emphasize that it is legally separate from the government. In addition, the City has three separate single-employer defined benefit plans, an OPEB Trust Fund, six defined contribution plans for general employees and City management under contract with the International City Management Association Retirement Corporation, for which the City acts as an agent for participants, and defined contribution plans for city commissioners and volunteer firefighters. The pension plans are reported as Fiduciary Funds in the fund financial statements of this report, but are not included in the government-wide statements. Fund Financial Statements A fund is a grouping of related accounts that are used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. These statements focus on individual parts of the City government, reporting the City s operations in more detail than the government-wide statements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government s near-term financing requirements. 5

25 Management s Discussion and Analysis (Unaudited) Because the focus of governmental funds is narrower than the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City s near-term financing decisions. The Governmental Fund balance sheet and the Governmental Fund statement of revenue, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains several individual governmental funds. Information is presented separately in the Governmental Fund balance sheet and in the Governmental Fund statement of revenue, expenditures and changes in fund balances for the General Fund, the Debt Service Fund, the Grants Fund, the Fire Fund, the Charter School Fund, the General Capital Projects Fund and the General Obligation Bonds Series 2006 Capital Projects Fund which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the Combining and Individual Fund statements and schedules section. Proprietary Funds The City maintains the following two different types of proprietary funds: Enterprise Funds These funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses Enterprise Funds to account for its water and sewer operations and Center for the Arts operations. Internal Service Funds These funds are an accounting device used to accumulate and allocate costs internally among the City s various functions. The City uses Internal Service Funds to account for its selfinsurance and equipment services operations. Because both of these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. Proprietary Funds provide the same type of information as the government-wide financial statements, only in more detail. The City presents separate columns for the Water and Sewer Fund and for the Center for the Arts Fund because they are both major funds. Internal Services Funds are aggregated and presented in a single column. A statement of cash flows is presented at the fund financial statement level for Proprietary Funds, but no equivalent statement is presented in the government-wide financial statements for either governmental activities or businesstype activities. Fiduciary Funds Fiduciary Funds are used to account for resources held for the benefit of parties outside the City. Fiduciary Funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City s own programs. The accounting used for Fiduciary Funds is much like that used for Proprietary Funds. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. 6

26 Management s Discussion and Analysis (Unaudited) Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City s progress in funding its obligation to provide pension benefits to its employees. This section also includes a comparison between the City s General Fund s adopted and final budget and actual financial results. Although the City adopts an annual appropriated budget for its General Fund, Fire Special Revenue Fund, Charter School Special Revenue Fund, Public Arts Special Revenue Fund, Conference Center Special Revenue Fund, Debt Service Fund, Internal Service Funds and Enterprise Funds, only a budgetary comparison schedule has been provided for the General Fund, Fire Special Revenue Fund and Charter School Special Revenue Fund in this section. The budgetary comparison schedules for the other funds can be found in other various locations. Combining and individual fund statements referred to earlier in connection with nonmajor governmental funds, proprietary funds, and fiduciary funds are presented immediately following the required supplemental information. Government-wide Financial Analysis The two government-wide financial statements report the City s net assets and how they have changed. Net assets the difference between the City s assets and liabilities is one way to measure the City s financial health, or position. There are six basic transactions that will affect the comparability of the Statement of Net Assets summary presentation as reflected below: 1. Net results of activities could impact (increase/decrease) current assets and unrestricted net assets. 2. Borrowing for capital will increase noncurrent assets and long-term debt. 3. Spending borrowed proceeds on new capital assets will reduce noncurrent assets and increase capital assets. 4. Spending of nonborrowed current assets on new capital assets will reduce current assets and increase capital assets and will reduce unrestricted net assets and increase invested in capital assets, net of debt. 5. Principal payment on debt will reduce current assets and reduce long-term debt and reduce unrestricted net assets and increase invested in capital assets, net of debt. 6. Reduction of capital assets through depreciation will reduce capital assets and invested in capital assets, net of debt. 7

27 Management s Discussion and Analysis (Unaudited) Summary of Net Assets The following schedule presents a summary of net assets of the City as of September 30, 2009 and 2008: Summary of Net Assets September 30, 2009 Governmental Activities Business-Type Activities Total Current and other assets $ 126,260,346 $ 125,480,410 $ 8,409,110 $ 6,417,053 $ 134,669,456 $ 131,897,463 Capital assets 160,949, ,523,340 44,202,522 44,078, ,152, ,601,425 Total assets 287,210, ,003,750 52,611,632 50,495, ,821, ,498,888 Long-term liabilities outstanding 57,611,609 60,502,908 12,885,826 12,615,168 70,497,435 73,118,076 Other liabilities 15,703,666 14,862,997 1,473,872 2,070,526 17,177,538 16,933,523 Total liabilities 73,315,275 75,365,905 14,359,698 14,685,694 87,674,973 90,051,599 Net assets: Invested in capital assets, net of related debt 120,383, ,645,324 33,645,340 31,588, ,029, ,233,409 Restricted 7,344,109 20,665,949 2,704, ,000 10,048,434 21,165,949 Unrestricted 86,167,181 70,326,572 1,902,269 3,721,359 88,069,450 74,047,931 Total net assets $ 213,895,028 $ 208,637,845 $ 38,251,934 $ 35,809,444 $ 252,146,962 $ 244,447,289 The overall position of the City improved in fiscal year Over time, net assets serve as a useful indicator of a government s financial position. The total net assets of the City increased by $8 million or approximately 3% from $244 million in 2008 to $252 million in The increase in the City's current and other assets is due primarily to a decrease in cash and investments offset by an increase of $2.4 million in the net pension asset and an increase of $3 million in due from other governments. The decrease in long-term liabilities is due to current year payments of principal offset by current year borrowings from the State Revolving Fund Loans of $2.5 million. The overall increase in net assets is a result of the City s operations. A significant portion of the City s net assets (61%) reflects its investment in capital assets (for example: land, land improvements, public art, buildings, infrastructure, equipment and construction in progress), less any related debt used to acquire these assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City s investment in its capital assets is reported net of related debt, the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the City s net assets (4%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets (35%) may be used to meet the City s ongoing obligations to citizens and creditors and is designated in its financial policies and strategies. 8

28 Management s Discussion and Analysis (Unaudited) Summary of Changes in Net Assets The following information is presented to assist the reader in understanding the different types of normal impacts that can affect revenue: 1. Economic condition can reflect a declining, stable or growing environment and has an impact on property, non-ad valorem assessments, sales, or other tax revenue as well as consumer spending habits for building permits, user fees and consumption. 2. The City Commission has the authority to set increases or decreases in the City s rates (water, sewer, permitting, impact fees, user fees and so on). 3. Changing patterns in intergovernmental and grant revenue (both recurring and nonrecurring) can change and impact the annual comparisons. 4. Market impacts on investment income may cause investment revenue to fluctuate from the prior year. Introduction of new programs can have an impact on property, non-ad valorem assessments, sales or other tax revenue as well as consumer spending habits for building permits, user fees and consumption. Some other impacts on expenses are as follows: 1. Changes in service demand levels can cause the City to increase or decrease authorized staffing. Staffing costs (salary and related benefits) represent approximately 70% of the City s operating costs. 2. Salary increases such as performance increases and market adjustments can impact personal service costs. 3. While inflation appears to be modest, the City is a consumer of certain commodities such as supplies, fuels and parts. Some functional expenses may experience unusual commodity specific increases. 9

29 Management s Discussion and Analysis (Unaudited) The following presents a summary of the City s operations for fiscal year 2009 with comparative information for fiscal year 2008: Summary of Changes in Net Assets Governmental Activities Business-Type Activities Total Revenue: Program revenue: Charges for services $ 30,374,194 $ 29,120,024 $ 16,209,644 $ 15,441,450 $ 46,583,838 $ 44,561,474 Operating grants and contributions 13,598,743 17,060, ,598,743 17,060,724 Capital grants and contributions 2,811,268 4,209, , ,882 2,960,632 4,686,707 General revenue: Property taxes 33,618,314 35,527, ,618,314 35,527,978 Franchise taxes 10,599,427 10,993, ,599,427 10,993,396 Utility taxes 8,938,082 8,915, ,938,082 8,915,560 Communications taxes 6,806,077 6,179, ,806,077 6,179,509 Gas taxes 2,288,006 2,348, ,288,006 2,348,110 Intergovernmental 12,753,996 13,303, ,753,996 13,303,309 Investment income 3,675,424 5,285, , ,274 3,821,415 5,488,968 Miscellaneous 1,249,828 1,079,572 (916) 25,700 1,248,912 1,105,272 Total revenue 126,713, ,023,701 16,504,083 16,147, ,217, ,171,007 Expenses: General government 13,127,189 14,641, ,127,189 14,641,854 Public safety: Police 40,876,135 36,494, ,876,135 36,494,923 Fire 22,344,627 20,683, ,344,627 20,683,298 Parks and recreation 15,448,561 15,042, ,448,561 15,042,019 Public works 6,761,456 6,439, ,761,456 6,439,801 Development services 7,496,283 8,132, ,496,283 8,132,722 Educational and cultural programs 12,176,680 12,204, ,176,680 12,204,784 Conference center 281, , , ,293 Interest on long-term debt 2,526,261 2,604, ,526,261 2,604,040 Water - - 6,469,192 6,062,492 6,469,192 6,062,492 Sewer - - 6,982,647 9,172,769 6,982,647 9,172,769 Center for the Arts - - 1,027,055 1,049,618 1,027,055 1,049,618 Total expenses 121,038, ,472,734 14,478,894 16,284, ,517, ,757,613 Increases (decreases) in net assets before transfers 5,674,484 17,550,967 2,025,189 (137,573) 7,699,673 17,413,394 Transfers in (out) (417,301) (388,100) 417, , Change in net assets 5,257,183 17,162,867 2,442, ,527 7,699,673 17,413,394 Net assets, beginning 208,637, ,474,978 35,809,444 35,558, ,447, ,033,895 Net assets, ending $ 213,895,028 $ 208,637,845 $ 38,251,934 $ 35,809,444 $ 252,146,962 $ 244,447,289 10

30 Management s Discussion and Analysis (Unaudited) FY 09 - Revenue by Source - Government Activities Intergovernmental 10% Gas Taxes 2% Communications Taxes 5% Utility Taxes 7% Investment Income 4% Miscellaneous Income 1% Charges f or Service 21% Operating Grants and Contributions 13% Franchise Taxes 8% Property Taxes 26% Captial Grants and Contributions 3% FY 08 - Revenue by Source - Governmental Activities Intergovernmental 10% Gas Taxes 2% Investment Income 5% Miscellaneous Income 1% Charges for Service 23% Communications Taxes 4% Utility Taxes 7% Operating Grants and Contributions 10% Franchise Taxes 8% Property Taxes 28% Capital Grants and Contributions 2% 11

31 Management s Discussion and Analysis (Unaudited) FY 09 Expenses by Program - Governmental Activiites 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 - FY 08 Expenses by Program - Governmental Activities 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000-12

32 Management s Discussion and Analysis (Unaudited) Governmental activities increased the City s net assets by $5.3 million, while business-type activities increased the City s net assets by $2.4 million. The net increase in governmental activities net assets is a result of the following: Charges for services increased by approximately $1.3 million or 4% due primarily to a $630,000 increase in a non-ad valorem special assessment fee for fire services as a result of a rate increase. The City s operating grants and contributions decreased by approximately $3.5 million or 20%, due primarily to a $3.2 million decrease in Forfeiture funds received from the Department of Justice. The City s Capital Grants and Contributions (revenue) decreased $1.4 million as a result of decreased funding from various grantor agencies. Property tax revenues decreased by approximately $1.9 million due primarily to a 5.73% decrease in the City s gross taxable property value. Investment income decreased by approximately $1.6 million due to decreased interest rates earned during fiscal year 2009 as well as less funds to invest due to the redemption of the Guaranteed Investment Contract which was used to refund debt in Overall, the City earned 3.82% in fiscal year 2008 compared to 3.56% for fiscal year Expenses during 2009 increased by approximately $4.6 million primarily due to personnel related expenditures including salaries, health insurance, pension and other benefit costs. The business-type activities net assets increased by $2.4 million or 6.8% over the prior fiscal year. The increase is due primarily to an 8.75% rate increase implemented in July 2008 offset by a $1.0 million increase in operating and program costs due to an increase in the wastewater treatment fee charged to the City by the County. Additionally, the City received $2.7 million for a square one adjustment from the county. The adjustment is a reallocation of prior years debt service based on each large user s change in their proportionate share of the system s capacity. The City s pro-rata share of overall plant capacity decreased resulting in the $2.7 million refund which is recorded as a credit to expenses. Financial Analysis of the City of Coral Springs Funds As noted earlier, the City uses fund accounting to help ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the City s Governmental Funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City s financing requirements. In particular, an unreserved fund balance may serve as a useful measure of a government s net resources available for spending at the end of the fiscal year. The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the total fund balance reached approximately $28,223,000, of which the unreserved fund balance of the General Fund was approximately $24,738,000 ($22,677,000 has been designated). As a measure of the General Fund s liquidity, it may be useful to compare both the unreserved fund balance and the total fund balance to total fund expenditures. Unreserved fund balance represents 29.1% of total General Fund expenditures, while total fund balance represents 33.2% of that same amount. 13

33 Management s Discussion and Analysis (Unaudited) The fund balance of the City s General Fund decreased by approximately $1,667,000 during the current fiscal year due mainly to franchise fee revenues being less than anticipated and transferring $3.9 million to the general capital projects fund in accordance with the financial strategy per the 2009 Business Plan offset by the City spending less than budgeted, specifically in general government and capital outlay. The fund balance for the Debt Service Fund increased by approximately $18,900. The appropriate payments of the City's debt principal, interest and related costs were made from the City's Debt Service Fund. The fund balance for the Grants Fund decreased by approximately $245,000 which is due to monies earned but not available at year end. The negative fund balance in the Grants Fund will be eliminated once the City receives reimbursement from grantor agencies. The fund balance for the Fire Fund increased $497,000 due primarily to an increase in non-ad valorem special assessment revenue and spending less than budgeted. The fund balance for the Charter School Fund increased approximately $112,000 due to a reduction in capital expenditures. The fund balance for the General Capital Projects Fund increased approximately $461,000 due to monies that were transferred in to fund new capital projects. The fund balance of the General Obligation Bonds Series 2006 Capital Projects Fund decreased approximately $3,481,000 due to expenditures for the Public Safety building renovations. Proprietary Funds The City s Proprietary Funds include the City s Enterprise Funds Water and Sewer Fund and the Center for the Arts Fund. An Enterprise Fund is used to account for activities for which a fee is charged to external users for goods and services. These funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net assets/(deficit) of the Water and Sewer Fund and the Center for the Arts Fund at the end of the current fiscal year totaled approximately $2,065,000 and ($162,000), respectively. The operating income (loss) for the Water and Sewer Fund and the Center for the Arts Fund was approximately $3,429,000 and ($1,027,000), respectively. This increase for the Water & Sewer Fund is due primarily to a refund of $2.7 million from the County due to a decrease in plant capacity used by the City. General Fund Budgetary Highlights The General Fund did require some interdepartmental changes to the original budget. A difference between the adopted budget and the final budget for the General Fund were minor and in keeping with the financial strategy adopted in the City s Business Plan for the 2009 fiscal year. No budget amendments were necessary. General Fund revenue did not exceed budgetary estimates. Expenditures were less than budgeted. This year s actual operations resulted in a $1,546,000 decrease to fund balance after all financial policies had been implemented. General Fund revenue was less than budgeted by approximately $0.9 million, or 1.0%. This deficit in revenue is primarily due to the reduction in franchise fee revenue received from Florida Power and Light of approximately $0.7 million less than the amount budgeted. In addition, the City earned approximately $0.3 million less than budgeted in fines and forfeitures due to a reduction in revenue received from court fines. 14

34 Management s Discussion and Analysis (Unaudited) General government expenditures were less than budget due primarily to several vacant positions during the fiscal year which led to a significant reduction in personnel expenses. The City had approximately 17 vacancies during fiscal year Parks and recreation expenditures were under budget due to salaries, contractual services and fuel expenditures being less than budgeted. Public works expenditures were under budget due to salaries, fuel and street light expenditures being less than budgeted. The Development Services expenditures were under budget due to salaries and contractual services expenditures being less than budgeted. The remaining variance is made up of multiple minor differences, which are the result of actual expenditures being slightly less than budgeted. Capital outlay expenditures budgeted were not made resulting in a $1 million favorable variance. Capital Assets and Debt Administration Capital Assets The City s investment in capital assets, net of related debt, for its governmental and business-type activities as of September 30, 2009 amounts to approximately $154,029,000 (net of accumulated depreciation). This is a net increase (additions less retirements and depreciation) of approximately $4,796,000 or 3.21% from last fiscal year. The following summarizes the City s capital assets as of September 30, 2009: Capital Assets September 30, 2009 (net of depreciation) Governmental Business-Type Activities Activities Total Land $ 29,516,821 $ 29,516,821 $ 631,558 $ 631,558 $ 30,148,379 $ 30,148,379 Construction in progress 7,700,248 2,517, , ,486 7,909,896 2,782,550 Public art 303, , , ,744 Land improvements 19,956,681 21,122, , ,459 20,103,271 21,293,364 Buildings 49,163,947 50,776,380 19,885,597 20,090,508 69,049,544 70,866,888 Infrastructure 37,825,063 38,266,683 21,293,976 20,942,434 59,119,039 59,209,117 Equipment 16,483,253 16,031,743 2,035,153 1,977,640 18,518,406 18,009,383 Total $ 160,949,957 $ 158,523,340 $ 44,202,522 $ 44,078,085 $ 205,152,479 $ 202,601,425 15

35 Management s Discussion and Analysis (Unaudited) Major capital assets expenditures during the current fiscal year included the following: Public Safety Building renovations $4,553,000 Rehabilitation of water treatment and distribution system $2,654,000 Purchase of 52 City vehicles $2,172,000 Road resurfacing projects $929,000 Installation of three emergency power generators $531,000 Improvements to drainage system in the Meadows and Dells neighborhood $492,000 Construction of Charter School parking lot and drainage field $276,000 Purchase of air handling unit for the Charter School $239,000 Entranceway beautification project $227,000 Construction of downtown pathways $161,000 Construction of county trail system $145,000 Additional information can be found in Note 6 Capital Assets. Long-Term Debt At September 30, 2009, the City had $66,861,507 in bonded debt (General Obligation, General Obligation Refunding, Revenue Refunding Bonds and State Revolving Fund Loans) outstanding. Of this amount, $13,500,000 related to General Obligation Bonds, $9,025,000 related to General Obligation Refunding Bonds, $2,501,507 related to State Revolving Fund Loans while the remaining $41,835,000 related to various types of Revenue Refunding Bonds. The debt position of the City is summarized below and is more fully explained in Note 7 Long-Term Liabilities. Bonded Debt September 30, 2009 Governmental Business-Type Activities Activities Total General obligation bonds $ 13,500,000 $ 13,500,000 $ - $ - $ 13,500,000 $ 13,500,000 General obligation refunding 9,025,000 10,170, ,025,000 10,170,000 Revenue refunding bonds 31,575,000 33,800,000 10,260,000 12,490,000 41,835,000 46,290,000 State revolving fund loans - - 2,501,507-2,501,507-54,100,000 57,470,000 12,761,507 12,490,000 66,861,507 69,960,000 Less deferred amounts (1,151,414) (1,616,795) - - (1,151,414) (1,616,795) Total $ 52,948,586 $ 55,853,205 $ 12,761,507 $ 12,490,000 $ 65,710,093 $ 68,343,205 16

36 Management s Discussion and Analysis (Unaudited) The decrease in the City s bonded debt in fiscal year 2009 is due primarily to making on time principal payments for the applicable debt offset by current year borrowings on State Revolving Fund Loans (see Note 7 for more information). The City received the highest investment grade for all of its bond issues related to the General Obligation and Refunding Bonds uninsured: AAA by Fitch Ratings, Aaa by Moody s Investors Service and AAA by Standard and Poor s. The City received AAA by Fitch Ratings for the Water and Sewer Revenue and Refunding Bonds. Economic Factors and Next Year s Budget The City uses a multi-year strategic planning process that results in a mission and a set of strategic priorities that provide vision and direction for the City. Specific initiatives are developed in response to the priorities identified in the Strategic Plan. The Business Plan is an outcome of the strategic priorities, capturing the City s vision in a specific, directed, and quantifiable form, given the current economic conditions. A key piece in developing the Business Plan and Budgets is the researched findings in the environmental scan and the resulting financial strategy. In developing the Fiscal Year 2009 Business Plan, Annual Budget and Capital Improvement Program, the following economic factors were considered: The growth in elastic revenue over the past two decades has slowed, given that the City has reached residential build-out (defined as having 95% or more of developable land in use). Although the City expected to reach commercial/industrial build-out, the pace of commercial/industrial development is expected to slow considerably due to the economic recession. Demand driven revenues (e.g. sales tax, gas tax) are expected to decline significantly due to the economic downturn. Pay-as-you-go financing and cash funding sources for current year capital projects continue to be viable strategies due to the success of past financial strategies, given the positive year-end surpluses and cash reserves in equipment sinking funds. Due to low staff turnover and elimination of some vacant positions, the typical 2.5% vacancy factor used across the board was reduced to 0% for all departments with the exception of the Water and Sewer Administration Division (0.5%) and the Water Distribution, Water Treatment and Wastewater Collection Division (1.5%). Fixed salary increases of 4.25% for nonunion employees, as per the City policy capping the amount of award that can be added to the base salary within the pay-for-performance range of 0% to 6%. Personnel governed by bargaining unit agreements were budgeted at an increase of 8.0% for Fire/EMS and 5.5% for Police. A 1.0% reduction in the debt service millage rate. An increase in the number of foreclosed and abandoned properties is expected. Additional factors include modest inflation, weak economic growth, hurricane impact, the price of oil, the continued softness in the equity markets, a sluggish housing market, increasing property insurance rates and the potential for declining population relative to other local cities which could impact the county revenue distribution formula. 17

37 Management s Discussion and Analysis (Unaudited) Contacting the City s Financial Services Department The City s financial statements are designed to present users (citizens, taxpayers, customers, investors, and creditors) with a general overview of the City s finances and to demonstrate the City s accountability. Questions concerning any of the information provided in this report or requests for additional financial information should be directed to the Financial Services Department, 9551 West Sample Road, Coral Springs, Florida

38 Statement of Net Assets September 30, 2009 Primary Government Component Unit Community Governmental Business-Type Redevelopment Assets Activities Activities Total Agency Cash and cash equivalents $ 21,137,590 $ 73,110 $ 21,210,700 $ 1,141,375 Investments 56,976,921-56,976,921 - Interest receivable 421,809 15, ,563 - Accounts receivable, net 4,601,945 2,224,890 6,826,835 - Long-term note receivable 2,869,595-2,869,595 - Internal balances 247,338 (247,338) - - Due from other governments 6,262,910 2,733,755 8,996,665 - Prepaid items 145, ,577 - Inventory 593,964 89, ,143 - Restricted assets: Cash and cash equivalents - 562, ,004 - Investments 12,382,365 2,704,325 15,086,690 - Net pension asset 19,484,132-19,484,132 - Net OPEB asset 578, ,000 - Deferred charges 558, , ,631 - Assets held for resale for community development ,020,704 Capital assets not being depreciated: Land 29,516, ,558 30,148,379 - Construction in progress 7,700, ,648 7,909,896 - Public art 303, ,944 - Capital assets (net of accumulated depreciation): Land improvements 19,956, ,590 20,103,271 - Buildings 49,163,947 19,885,597 69,049,544 - Infrastructure 37,825,063 21,293,976 59,119,039 - Equipment 16,483,253 2,035,153 18,518,406 - Total assets 287,210,303 52,611, ,821,935 4,162,079 Liabilities Accounts payable and accrued liabilities 6,837, ,968 7,708,565 36,744 Interest payable 95,428 40, ,328 - Due to other governments 10,059-10,059 2,869,595 Accrued liability for estimated claims 3,730,318-3,730,318 - Deposits and unearned revenue 5,030, ,004 5,592,268 - Noncurrent liabilities: Due within one year: Compensated absences 4,287, ,319 4,412,080 - Bonds payable 3,009,540 2,315,116 5,324,656 - Landfill closure obligation 22,000-22,000 - Due in more than one year: Net pension obligation 131, ,262 - Bonds and loans payable 49,939,046 10,446,391 60,385,437 - Landfill closure obligation 222, ,000 - Total liabilities 73,315,275 14,359,698 87,674,973 2,906,339 Net Assets Invested in capital assets, net of related debt 120,383,738 33,645, ,029,078 - Restricted for: Law enforcement 5,559,303-5,559,303 - Landfill monitoring 22,000-22,000 - Renewal and replacement - 500, ,000 - Bond reserves 1,762,806 2,204,325 3,967,131 - Unrestricted 86,167,181 1,902,269 88,069,450 1,255,740 Total net assets $ 213,895,028 $ 38,251,934 $ 252,146,962 $ 1,255,740 See Notes to Financial Statements. 19

39 Statement of Activities Fiscal Year Ended September 30, 2009 Program Revenue Operating Capital Charges Grants and Grants and Functions/Programs Expenses for Services Contributions Contributions Primary Government: Governmental activities: General government $ 13,127,189 $ 2,174,721 $ 123,561 $ 117,355 Police 40,876,135 1,590, ,502 1,169,216 Fire 22,344,627 16,499,855 18, ,693 Parks and recreation 15,448,561 4,037,915 54,005 70,577 Public works 6,761,456 1, ,045 Development services 7,496,283 4,456,091 1,475, ,382 Educational and cultural programs 12,176,680 1,447,034 11,419,530 - Conference center 281, , Interest on long-term debt 2,526, Total governmental activities 121,038,875 30,374,194 13,598,743 2,811,268 Business-type activities: Water 6,469,192 7,559,980-77,327 Sewer 6,982,647 8,649,664-72,037 Center for the Arts 1,027, Total business-type activities 14,478,894 16,209, ,364 Total primary government $ 135,517,769 $ 46,583,838 $ 13,598,743 $ 2,960,632 Component Unit: Community Redevelopment $ 165,166 $ - $ - $ - Interest expense 148, $ 313,416 $ - $ - $ - General revenue: Taxes: Ad valorem, levied for general purpose Ad valorem, levied for debt service Franchise taxes Utility taxes Communication taxes Gas taxes Incremental property tax Intergovernmental not restricted to specific programs Investment income Miscellaneous Transfers Total general revenue and transfers Change in net assets Net assets, beginning Net assets, ending See Notes to Financial Statements. 20

40 Net (Expense) Revenue and Changes in Net Assets Primary Government Component Unit Governmental Business-Type Community Activities Activities Total Redevelopment Agency $ (10,711,552) $ - $ (10,711,552) $ - (37,608,641) - (37,608,641) - (5,695,877) - (5,695,877) - (11,286,064) - (11,286,064) - (6,018,611) - (6,018,611) - (981,867) - (981,867) - 689, ,884 - (115,681) - (115,681) - (2,526,261) - (2,526,261) - (74,254,670) - (74,254,670) - - 1,168,115 1,168, ,739,054 1,739, (1,027,055) (1,027,055) - - 1,880,114 1,880,114 - (74,254,670) 1,880,114 (72,374,556) (165,166) (148,250) (313,416) 31,947,040-31,947,040-1,671,274-1,671,274-10,599,427-10,599,427-8,938,082-8,938,082-6,806,077-6,806,077-2,288,006-2,288, ,664 12,753,996-12,753,996-3,675, ,991 3,821,415 7,891 1,249,828 (916) 1,248,912 - (417,301) 417, ,511, ,376 80,074, ,555 5,257,183 2,442,490 7,699,673 21, ,637,845 35,809, ,447,289 1,234,601 $ 213,895,028 $ 38,251,934 $ 252,146,962 $ 1,255,740 21

41 Governmental Funds Balance Sheet September 30, 2009 Debt General Service Grants Fire Assets Fund Fund Fund Fund Cash and cash equivalents $ 4,540,649 $ 831,483 $ 65 $ 559,553 Investments 19,166,840 3,519, ,368,142 Interest receivable 111,794 20,525-13,812 Accounts receivable, net 4,588, ,058 Due from other funds 1,900, Due from other governments 2,441,092-3,821,818 - Prepaid items Long-term note receivable 2,869, Inventory 593, Total assets $ 36,212,772 $ 4,371,009 $ 3,822,160 $ 2,942,565 Liabilities and Fund Balances Liabilities: Accounts payable and accrued liabilities $ 3,301,101 $ - $ 379,643 $ 652,279 Due to other funds - - 1,652,996 - Due to other governments 10, Deposits, unearned and deferred revenue 4,678,350-4,008,670 60,460 Total liabilities 7,989,510-6,041, ,739 Fund balances (deficit): Reserved for: Inventory 593, Prepaid items Long-term note receivable 2,869, Capital projects Landfill 22, Bond reserves - 1,762, Unreserved, designated for: Maintenance and replacement Computer replacement program 1,861, Parks 81, Financial policies General Fund 15,596, Special Revenue Funds ,411,135 Capital projects ,000 Facilities replacement 3,491, Future maintenance Special Revenue Funds Subsequent years expenditures 1,645, Subsequent years expenditures Capital Projects Funds Undesignated, reported in: General Fund 2,060, Special Revenue Funds - - (2,219,149) 318,691 Debt Service Funds - 2,608, Total fund balances (deficit) 28,223,262 4,371,009 (2,219,149) 2,229,826 Total liabilities and fund balances $ 36,212,772 $ 4,371,009 $ 3,822,160 $ 2,942,565 See Notes to Financial Statements. 22

42 General Charter Capital G.O. Bonds Nonmajor Total School Projects Series 2006 Governmental Governmental Fund Fund Fund Funds Funds $ 1,422,249 $ 2,122,812 $ 5,770,880 $ 2,416,302 $ 17,663,993 6,019,242 8,984,164 5,191,150 9,702,316 54,951,132 35,109 52,402 47,541 56, ,771 10, ,600, ,900, ,262, , , ,869, ,964 $ 7,632,729 $ 11,159,378 $ 11,009,571 $ 12,175,206 $ 89,325,390 $ 1,100,920 $ 259,547 $ 961,847 $ 4,360 $ 6,659, ,652, , , ,816 9,889,915 1,929, , , ,176 18,212, , , , ,869, ,094 4,458,610-4,992, , ,762, , , ,861, , ,596,447 4,202, ,613, , ,491, ,700 38, ,645,459-9,934,296 5,589, ,837 16,095, ,060,517 1,355, ,246,493 10,701, ,608,203 5,703,190 10,899,831 10,047,724 11,857,030 71,112,723 $ 7,632,729 $ 11,159,378 $ 11,009,571 $ 12,175,206 $ 89,325,390 23

43

44 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets September 30, 2009 Fund balances total governmental funds $ 71,112,723 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and therefore, are not reported in the funds. 152,178,750 Net pension and trust assets/obligations resulting from overfunding /underfunding in the police, fire, and general employees pension plans and OPEB Trust are not reported in the funds as they are not available to pay for current period expenditures. Net pension asset 19,484,132 Net pension obligation (131,262) OPEB Trust asset 578,000 Deferred grant and interest revenue in governmental funds are susceptible to full accrual in the government-wide statements. 3,345,328 Deferred ambulance transport fee revenue in the general fund is susceptible to full accrual in the government-wide statements. 1,514,323 Internal service funds are used by management to charge the costs of fleet management and self-insurance activities to individual funds. The assets and liabilities of the internal service funds, (including capital assets) are included in governmental activities in the statement of net assets: Assets $ 26,738,827 Liabilities (3,988,891) Total net assets 22,749,936 Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore, are not reported in the governmental funds: Accrued interest payable (95,428) Bonds payable (54,100,000) Compensated absences (4,207,088) Landfill closure obligation (244,000) Total (58,646,516) Certain items are recognized when debt is issued in the governmental funds. These items, however, must be capitalized and amortized in the government-wide statements: Bond issuance costs, premiums, discounts, and deferred amounts on refundings. 2,262,117 Amortization (552,503) Total 1,709,614 Net assets of governmental activities $ 213,895,028 See Notes to Financial Statements. 24

45 Governmental Funds Statement of Revenue, Expenditures and Changes in Fund Balances Fiscal Year Ended September 30, 2009 Debt General Service Grants Fire Fund Fund Fund Fund Revenue: Taxes: Ad valorem $ 31,947,040 $ 1,671,274 $ - $ - Franchise fees 10,599, Utility 8,938, Intergovernmental 21,829,080-3,390,407 41,896 Non-ad valorem special assessment ,499,229 Licenses and permits 3,587, Charges for services 10,085, ,125,734 Fines and forfeitures 1,209, Interest and other 3,627, , ,203 Total revenue 91,823,713 1,996,881 3,390,640 13,831,062 Expenditures: Current: General government 13,189,705 2, Public safety: Police 40,055,741-19,537 - Fire 9,185, ,926,635 Parks and recreation 12,165, Public works 4,106,033-12,946 - Development services 5,518,275-1,108,309 - Educational and cultural programs 511, Capital outlay 296,532-2,463,908 58,110 Debt service: Principal - 3,888, Interest and other - 2,066, Total expenditures 85,029,107 5,957,745 3,604,700 13,984,745 Excess (deficiency) of revenue over (under) expenditures 6,794,606 (3,960,864) (214,060) (153,683) Other financing sources (uses): Issuance of debt - 518, Transfers in 604,386 3,979, ,042 Transfers out (9,066,187) (518,217) (31,073) (305,060) Total other financing sources (uses) (8,461,801) 3,979,762 (31,073) 650,982 Net change in fund balances (1,667,195) 18,898 (245,133) 497,299 Fund balances (deficit), beginning of year 29,890,457 4,352,111 (1,974,016) 1,732,527 Fund balances (deficit), end of year $ 28,223,262 $ 4,371,009 $ (2,219,149) $ 2,229,826 See Notes to Financial Statements. 25

46 General Charter Capital G.O. Bonds Nonmajor Total School Projects Series 2006 Governmental Governmental Fund Fund Fund Funds Funds $ - $ - $ - $ - $ 33,618, ,599, ,938,082 11,419, , ,781, ,499, ,953 3,590, ,036 16,404, ,202 1,681, , , , ,702 5,533,735 11,664, , ,234 1,113, ,646, ,192, ,428,910 41,504, ,111, ,329 12,381, ,118, ,626,584 11,449, ,290 11,986,120-4,289,427 3,849, ,378 11,065, ,888, ,066,878 11,449,872 4,289,427 3,849,952 1,776, ,942, ,799 (3,833,236) (3,480,718) (663,014) (5,296,170) ,217-4,294, ,866 9,937,427 (102,866) - - (340,097) (10,363,500) (102,866) 4,294,371 - (237,231) 92, , ,135 (3,480,718) (900,245) (5,204,026) 5,591,257 10,438,696 13,528,442 12,757,275 76,316,749 $ 5,703,190 $ 10,899,831 $ 10,047,724 $ 11,857,030 $ 71,112,723 26

47

48 Reconciliation of the Statement of Revenue, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Fiscal Year Ended September 30, 2009 Net change in fund balances, total governmental funds $ (5,204,026) Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlay as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense: Expenditures for capital assets $ 11,376,095 Less current year depreciation (9,259,719) Total 2,116,376 The net effect of disposals of capital assets is to decrease net assets: Proceeds from sale of capital assets (34,304) Loss on disposal of capital assets 31,072 Total (3,232) Grant and interest revenue is reported in the statement of activities but is reported as deferred revenue in governmental funds. 1,160,405 Ambulance transport fee revenue is reported in the statement of activities but is reported as deferred revenue in governmental funds. 199,812 Overfunded pension and trust contributions are reported as a reduction of expenses and an increase of the net pension asset on the statement of net assets and are not recorded in the fund financial statements. 2,710,215 The issuance of long-term debt provides current financial resources and the repayment of the principal of long-term debt consumes the current financial resources of the governmental funds. Neither has an effect on net assets. Debt issued (518,217) Principal repayments 3,888,217 Amortization of deferred charges, loss on advance refundings, discounts and premiums from issuance of debt (552,503) Total 2,817,497 Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue of the internal service funds is reported with governmental activities. 1,551,491 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds: Compensated absences (113,353) Landfill closure obligation 16,000 Accrued interest on long-term debt 5,998 Total (91,355) Change in net assets of governmental activities $ 5,257,183 See Notes to Financial Statements. 27

49 Proprietary Funds Statement of Net Assets September 30, 2009 Governmental Business-Type Activities Enterprise Funds Activities Water and Center for Internal Sewer the Arts Total Service Funds Assets: Current assets: Cash and cash equivalents $ 73,110 $ - $ 73,110 $ 3,473,597 Investments ,408,154 Interest receivable 15,754-15,754 84,038 Accounts receivables, net 1,254,004-1,254,004 1,831 Unbilled usage fees 970, ,886 - Due from other governments 2,733,755-2,733,755 - Inventory 89,179-89,179 - Restricted assets: Cash and cash equivalents 562, ,004 - Investments 2,204,325-2,204,325 - Total current assets 7,903,017-7,903,017 17,967,620 Noncurrent assets: Restricted assets: Investments 500, ,000 - Deferred charges 253, ,431 - Capital assets: Land 198, , ,558 - Construction in progress 209, ,648 - Land improvements 86, , ,616 26,728,344 Equipment 2,690, ,991 3,636,094 - Buildings 29,362,634 13,026,999 42,389,633 - Water and sewer system/infrastructure 50,810,224 13,068 50,823,292 - Less accumulated depreciation (46,154,988) (7,700,331) (53,855,319) (17,957,137) Total capital assets, net 37,202,544 6,999,978 44,202,522 8,771,207 Total noncurrent assets 37,955,975 6,999,978 44,955,953 8,771,207 Total assets 45,858,992 6,999,978 52,858,970 26,738,827 (Continued) 28

50 Proprietary Funds Statement of Net Assets (Continued) September 30, 2009 Governmental Business-Type Activities Enterprise Funds Activities Water and Center for Internal Sewer the Arts Total Service Funds Liabilities: Current liabilities payable from current assets: Accounts payable and accrued liabilities $ 855,930 $ 15,038 $ 870,968 $ 177,900 Accrued interest 40,900-40,900 - Due to other funds 100, , ,338 - Due to other governments Compensated absences 124, ,319 80,673 Current portion of long-term liabilities 2,315,116-2,315,116 - Accrued liability for estimated claims ,730,318 Total current liabilities payable from current assets 3,436, ,376 3,598,641 3,988,891 Current liabilities payable from restricted assets: Deposits 562, ,004 - Total current liabilities payable from restricted assets 562, ,004 - Total current liabilities 3,998, ,376 4,160,645 3,988,891 Noncurrent liabilities: Long-term liabilities 10,446,391-10,446,391 - Total noncurrent liabilities 10,446,391-10,446,391 - Total liabilities 14,444, ,376 14,607,036 3,988,891 Net assets: Invested in capital assets, net of 26,645,362 6,999,978 33,645,340 8,771,207 related debt Restricted for: Renewal and replacement 500, ,000 - Bond reserves 2,204,325-2,204,325 - Unrestricted (deficit) 2,064,645 (162,376) 1,902,269 13,978,729 Total net assets $ 31,414,332 $ 6,837,602 $ 38,251,934 $ 22,749,936 See Notes to Financial Statements. 29

51

52 Proprietary Funds Statement of Revenue, Expenses and Changes in Fund Net Assets Fiscal Year Ended September 30, 2009 Governmental Business-Type Activities Enterprise Funds Activities Water and Center for Internal Sewer the Arts Total Service Funds Operating revenue: Charges for services $ 16,209,644 $ - $ 16,209,644 $ 16,729,871 Other revenue ,281,616 Total operating revenue 16,209,644-16,209,644 18,011,487 Operating expenses: Operating and program costs 6,693, ,663 7,141,975 1,067,685 Administration 2,389,684-2,389,684 2,644,439 Nondepartmental 878,887 32, ,887 - Depreciation 2,818, ,392 3,365,109 2,204,685 Insurance claims, net of recoveries ,293,769 Insurance premiums ,391,141 Total operating expenses 12,780,600 1,027,055 13,807,655 17,601,719 Operating income (loss) 3,429,044 (1,027,055) 2,401, ,768 Nonoperating revenue (expenses): Investment income 145, , ,256 Interest expense (554,110) - (554,110) - Amortization of bond issue costs (117,129) - (117,129) - Trustee fees paid (916) - (916) - Gain on disposal of capital assets ,832 Total nonoperating revenue (expenses) (526,164) - (526,164) 710,088 Income (loss) before capital contributions and transfers 2,902,880 (1,027,055) 1,875,825 1,119,856 Capital contributions impact fees 30,990-30,990 - Capital contributions 118, , ,863 Transfers in 31, , ,073 8,772 Transfers out (8,772) - (8,772) - Change in net assets 3,074,545 (632,055) 2,442,490 1,551,491 Total net assets, beginning of year 28,339,787 7,469,657 35,809,444 21,198,445 Total net assets, end of year $ 31,414,332 $ 6,837,602 $ 38,251,934 $ 22,749,936 See Notes to Financial Statements. 30

53 Proprietary Funds Statement of Cash Flows Fiscal Year Ended September 30, 2009 Governmental Business-Type Activities Enterprise Funds Activities Water and Center for Internal Sewer the Arts Total Service Funds Cash Flows From Operating Activities Receipts from customers $ 16,190,165 $ 44,203 $ 16,234,368 $ - Receipts from other funds 100,000 97, ,752 16,758,960 Receipts from employees and other sources ,367 Payments to suppliers for goods and services (8,027,818) (513,863) (8,541,681) (4,887,447) Payments for claims (8,860,603) Payments to employees for services (5,211,111) - (5,211,111) (1,334,506) Net cash provided by (used in) operating activities 3,051,236 (371,908) 2,679,328 2,610,771 Cash Flows From Noncapital Financing Activities Transfer from other funds 31, , ,073 8,772 Transfer to other funds (8,772) - (8,772) - Net cash provided by (used in) - noncapital financing activities 22, , ,301 8,772 Cash Flows From Capital and Related Financing Activities Acquisition and construction of capital assets (3,348,080) (23,092) (3,371,172) (2,099,263) Trustee fees paid (916) - (916) - Proceeds from sale of capital assets ,801 Proceeds from loan 2,501,507-2,501,507 - Principal paid on bonds (2,230,000) - (2,230,000) - Interest paid on bonds (558,911) - (558,911) - Proceeds from impact fees 30,990-30,990 - Net cash used in capital and related financing activities (3,605,410) (23,092) (3,628,502) (1,993,462) Cash Flows From Investing Activities Interest received 192, , ,069 Proceeds from sale of investments 2,820,674-2,820,674 11,187,200 Purchase of investments (3,143,831) - (3,143,831) (15,076,097) Net cash provided by (used in) investing activities (130,239) - (130,239) (3,103,828) Net increase (decrease) in cash and cash equivalents (662,112) - (662,112) (2,477,747) Cash and cash equivalents, beginning of year 1,297,226-1,297,226 5,951,344 Cash and cash equivalents, end of year 635, ,114 3,473,597 Cash and cash equivalents reported as: Cash and cash equivalents, unrestricted 73,110-73,110 3,473,597 Cash and cash equivalents, restricted 562, ,004 - $ 635,114 $ - $ 635,114 $ 3,473,597 (Continued) 31

54 Proprietary Funds Statement of Cash Flows (Continued) Fiscal Year Ended September 30, 2009 Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) 3,429,044 Business-Type Activities Governmental Enterprise Funds Activities Water and Center for Internal Sewer the Arts Total Service Funds $ $ (1,027,055) $ 2,401,989 $ 409,768 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 2,818, ,392 3,365,109 2,204,685 Changes in assets and liabilities: (Increase) decrease in accounts receivable (10,344) 44,203 33,859 4,688 Increase in due from other governments (2,733,755) - (2,733,755) - Decrease in inventory 7,076-7,076 - Increase in due to other funds 100,000 97, ,752 - Decrease in due to other governments (431,312) - (431,312) - Decrease in accounts payable (118,206) (33,200) (151,406) (124,351) Increase in accrued liability for estimated claims ,318 Increase (decrease) in compensated absences (849) - (849) 5,663 Decrease in deposits (9,135) - (9,135) - Total adjustments (377,808) 655, ,339 2,201,003 Net cash provided by (used in) operating activities $ 3,051,236 $ (371,908) $ 2,679,328 $ 2,610,771 Noncash investing, capital, noncapital and related financing activities: Decrease in fair value of investments that are not cash equivalents: Unrealized losses on investments (42,734) - (42,734) (172,862) Contributions of equipment from the following sources occurred: General Fund 17,640-17,640 - Grants Fund 68,571-68,571 - Nonmajor Funds 32,163-32, ,863 $ 118,374 $ - $ 118,374 $ 422,863 See Notes to Financial Statements. 32

55 Fiduciary Funds Statement of Net Assets September 30, 2009 Pension Trust Assets Funds Pooled cash and cash equivalents $ 7,097,156 Investments: Government securities 22,892,623 Other debt securities 7,179,079 Common stock 66,623,056 Mutual funds 51,877,372 Pending trades 986,830 Contributions receivable 1,190,639 Interest receivable 356,006 Other assets 1,665,027 Total assets 159,867,788 Liabilities: Accounts payable and accrued liabilities 141,889 Pending trades 1,977,331 Total liabilities 2,119,220 Net assets: Held in trust for pension benefits $ 157,748,568 See Notes to Financial Statements. 33

56 Fiduciary Funds Statement of Changes in Net Assets Fiscal Year Ended September 30, 2009 Pension Trust Funds Additions: Employee contribution $ 4,178,547 Employer contribution 11,591,469 State contribution 2,109,289 Total contributions 17,879,305 Investment income 3,755,572 Net depreciation in fair value of investments (1,824,204) Other income 12,815 1,944,183 Investment expense (513,579) Net investment income 1,430,604 Total 19,309,909 Deductions: Benefit payments 8,215,865 DROP payments and other 1,728,914 Rollover 12,567 Refunds 64,746 Loan defaults 193,313 Administrative expenses 173,611 Total 10,389,016 Net increase in plan net assets 8,920,893 Net assets held in trust for pension benefits, beginning of year 148,827,675 Net assets held in trust for pension benefits, end of year $ 157,748,568 See Notes to Financial Statements. 34

57 CITY OF CORAL SPRINGS, FLORIDA Index Page Note 1 Summary of Significant Accounting Policies 35 Note 2 Deficit Fund Balances of Individual Funds and Budgetary Control 42 Note 3 Cash and Cash Equivalents and Investments 42 Note 4 Receivables and Payables 50 Note 5 Interfund Receivables, Payables and Transfers 51 Note 6 Capital Assets and Construction Commitments 53 Note 7 Long-Term Liabilities 56 Note 8 Industrial Development Bonds 62 Note 9 Restricted Net Assets 62 Note 10 Risk Management 62 Note 11 Contingency 63 Note 12 Employee Retirement Plans 64 Note 13 Other Post-Employment Benefits 74 Note 14 Pronouncements Issued But Not Yet Adopted 77

58 Notes to Financial Statements Note 1. Summary of Significant Accounting Policies A. Financial Reporting Entity The City of Coral Springs (the City ) was incorporated on July 10, 1963, under the provisions of Chapter Laws of Florida, Acts of The City operates under a Commission-Manager form of government and provides the following full range of municipal services authorized by its charter: public safety, highways and streets, sanitation, culture, education through its charter school, recreation, public improvements, planning and zoning, water and sewer and general administrative services. The City s basic financial statements include the operations of all organizations for which the City is considered to be financially accountable. The City Commission of Coral Springs, Florida under the provisions of Chapter 163 of Florida Statutes established the Coral Springs Community Redevelopment Agency ( CRA ) in 2001, by Ordinance No , as an independent special district. The CRA was established to prepare or have prepared a community redevelopment plan for areas within the City, which are, determined to be slum or blighted areas and to carry out the community redevelopment purposes of Part III, Chapter 163, of the Florida Statutes. The CRA is a discretely presented component unit and is reported in a separate column in the government-wide financial statements. The CRA is a discrete component unit in that it is a legally separate entity, it has a governing board that is different from the City, a financial benefit/burden relationship exists with the City, and it does not provide services entirely or almost entirely to the City. The CRA s Board is composed of seven persons, appointed by the City of Coral Springs City Commission. Copies of these reports are available at the City Manager s Office in City Hall 9551 West Sample Road, Coral Springs, Florida The following is a summary of the significant accounting policies applicable to the City: The accounting policies of the City conform to accounting principles generally accepted in the United States of America ( GAAP ) applicable to governmental units. The Governmental Accounting Standards Board ( GASB ) is the standard-setting body for governmental accounting and financial reporting. B. Government-Wide and Fund Financial Statements The basic financial statements include both government-wide (based on the City as a whole) and fund financial statements along with the notes to the financial statements. Both the government-wide and fund financial statements (within the basic financial statements) distinguish between the governmental and business-type activities of the City. Government-wide financial statements include a statement of net assets and a statement of activities. These statements report on the government as a whole and provide a financial picture of the entire government. The amounts reported as internal balances represent the residual amounts due between governmental and business-type activities. Fiduciary Funds of the government are not included in this presentation since these resources are not available for funding general government programs. 35

59 Notes to Financial Statements Note 1. Summary of Significant Accounting Policies (Continued) The statement of net assets reports all financial and capital resources of the City s governmental and business-type activities. Governmental activities are those largely supported by taxes and intergovernmental revenue. Businesstype activities rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenue. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenue includes: (1) charges for goods or services that are recovered directly from customers for services rendered, and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items that are not directly related to program revenue are reported as general revenue. Separate financial statements are provided for Governmental Funds, Proprietary Funds, and Fiduciary Funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Since the governmental fund financial statements are presented on a different measurement focus and basis of accounting than the government-wide statements, a reconciliation is provided which briefly explains the adjustments necessary to reconcile the governmental fund financial statements to the governmental activities of the governmentwide presentations. C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide, the proprietary fund and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses reported when a liability is incurred, regardless of the timing of related cash flows. All governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenue is recognized in the accounting period in which it becomes both measurable and available to finance expenditures of the current period. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the fiscal year. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, landfill postclosure care costs, pension costs and OPEB trust costs, and claims and judgments, are recorded only when payment is due. Property taxes, when levied for, franchise taxes, utility taxes, ambulance fees, intergovernmental revenues when the eligibility requirements are met, and interest income associated with the current fiscal period are measurable and are recorded as revenue, if available. Licenses and permits, charges for services and miscellaneous revenue are recorded as revenue when received in cash because they are generally not measurable until actually received. D. Major Funds and Basis of Presentation The financial transactions of the City are recorded in individual funds. The operations of each fund are accounted for using a separate set of self-balancing accounts, which comprise its assets, liabilities, reserves, fund equities, revenue and expenditures or expenses. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. 36

60 Notes to Financial Statements Note 1. Summary of Significant Accounting Policies (Continued) Accounting principles generally accepted in the United States of America set forth minimum criteria (percentage of the assets, liabilities, revenue or expenditures/expenses of the applicable fund category and the governmental and enterprise combined) for the determination of major funds. The nonmajor funds are presented in one column in the respective fund financial statements. The following is a description of the major governmental funds of the City: The General Fund is the primary operating fund of the City. It is used to account for all financial resources of the general government, except those required to be accounted for in another fund. Revenue is derived primarily from property taxes, utility taxes, state, federal and other intergovernmental revenue. General operating expenditures, fixed charges, and capital outlay costs that are not paid through other funds are paid from the General Fund. The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, general government debt principal, interest, and related costs. The Grants Fund is used to account for certain federal, state and local grants received by the City. The Fire Fund is used to account for the operations of the City s fire prevention and suppression services. The Charter School Fund is used to account for the operations of the Coral Springs Charter School and the proceeds of specific revenue sources (other than major capital projects) that are legally restricted for specified purposes related to the City of Coral Springs. The General Capital Projects Fund is used to account for the acquisition and construction of major capital facilities other than those financed by grants and general obligation and revenue bonds. The General Obligation Bonds Series 2006 Fund is used to account for the acquisition and construction of a new fire station and the hardening of the glass exterior and various other improvements to the Public Safety Building financed by this bond series. The following is a description of the major Proprietary Funds of the City: The Water and Sewer Fund accounts for the provision of water and sewer services to residents and businesses of the City that fall under the City s jurisdiction. The Coral Springs Center for the Arts Fund accounts for activities of the Coral Springs Center for the Arts. Additionally, the City reports the following fund types: The Internal Service Funds are used to account for goods or services provided by one department to other departments of the City on a cost-reimbursement basis. The City operates two Internal Service Funds: the Self-Insurance Fund and the Equipment Services Fund. 37

61 Notes to Financial Statements Note 1. Summary of Significant Accounting Policies (Continued) The Fiduciary Funds are used to account for assets held by the City in a trustee capacity or as an agent on behalf of others. The Trust Funds account for the financial resources of the City s pension and OPEB trust plans. The funds are accounted for in essentially the same manner as the proprietary funds, using the same measurement focus and basis of accounting. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments in lieu of taxes and other charges between the City s water and sewer function and various other functions of the City. Elimination of these charges would distort the direct costs and program revenue for the various functions concerned. Amounts reported as program revenue in the government-wide financial statements include: (1) charges to customers or applicants for goods, services, or privileges provided, (2) operating grants and contributions, and (3) capital grants and contributions, including special assessments. All revenue that are not program revenue are general revenue, and include all taxes, as well as grants, contributions and investment earnings that are not restricted to a particular program. Proprietary funds distinguish operating revenue and expenses from nonoperating items. Operating revenue and expenses generally result from providing services and producing and delivering goods in connection with a Proprietary Fund s principal ongoing operations. All revenue and expenses not meeting this definition are reported as nonoperating. When both restricted and unrestricted resources are available for use, it is the City s policy to use restricted resources first, and then unrestricted resources as they are needed. Based on the accounting and reporting standards set forth in Governmental Accounting Standards Board ( GASB ) Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting, the City applies only the accounting and reporting pronouncements issued by the Financial Accounting Standards Board prior to November 30, 1989 to the extent they do not conflict with GASB pronouncements. E. Accounting Standards Adopted In fiscal year 2009, the City adopted Statement No. 49, Accounting and Financial Reporting for Pollution Remediation Obligations issued by the Governmental Accounting Standards Board ( GASB ). This Statement addresses accounting and financial reporting standards for pollution (including contamination) remediation obligations, which are obligations to address the current or potential detrimental effects of existing pollution by participating in pollution remediation activities such as site assessments and cleanups. The scope of the document excludes pollution prevention or control obligations with respect to current operations, and future pollution remediation activities that are required upon retirement of an asset, such as landfill closure and postclosure care and nuclear power plant decommissioning. The adoption resulted in no financial statement impact to the City. 38

62 Notes to Financial Statements Note 1. Summary of Significant Accounting Policies (Continued) F. Assets, Liabilities and Net Assets or Equity Equity in pooled cash and investments: The City, for accounting and investment purposes, maintains a pooled cash and investments account. This gives the City the ability to invest large amounts of idle cash for short periods of time and to maximize earning potential. Cash and cash equivalents include demand deposits, repurchase agreements, money market funds, cash on hand, commercial paper, certificates of deposits and deposits with the State Board of Administration Local Government Pool. For purposes of the statement of cash flows, the Proprietary Funds cash and cash equivalents are considered to be demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. Investments are recorded at fair value (quoted market price), with the exception of the investments held by the State Board of Administration and the Florida Municipal Pension Trust Fund. The investments held by the State Board of Administration in the Local Government Surplus Funds Trust Fund Investment Pool ( LGIP ) and the Florida Municipal Pension Trust Fund are recorded at amortized cost, which is consistent with the treatment of 2a-7 like pool securities. The investments held by the State Board of Administration Fund B Surplus Funds Trust Fund (the Fund B ) are recorded at fluctuating net asset value ( NAV ) and accounted for as a fluctuating NAV pool. The Florida Municipal Pension Trust Fund is a Local Government Pool like the State Board of Administration. Receivables, payables and pending trades: During the course of its operations, the City has numerous transactions between funds to provide goods or render services. These receivables and payables are classified as due from other funds or due to other funds. Balances of interfund receivables and payables not expected to be liquidated within one year are recorded as advances to and advances from other funds. Balances of advances to other funds are reserved in the fund balances of the respective funds since these balances are not available for appropriation. All trade and other receivables are reported at original amount, net of an allowance for doubtful receivables based on a review of outstanding amounts on a regular basis. Management determines that allowance by specifically identifying uncollectible accounts and a general allowance is calculated based on the City s historic bad-debt experience. Pending trades represent investment purchases or sales that have been initiated but have not settled as of the balance sheet date. Inventory: Inventory, consisting primarily of expendable supplies held for consumption, are stated at lower of cost or market on a first-in, first-out basis. The City utilizes the consumption method of accounting, which provides that expenditures are recognized when inventory is used. In the Governmental Funds balance sheet, the reserve for inventories in the General Fund is equal to the amount of inventories to indicate that a portion of the fund balance is not available for future expenditures. Restricted assets: Certain proceeds from revenue refunding bonds, as well as other monies as required by several bond indentures, are classified as restricted assets in the government-wide and proprietary fund statements of net assets. Restricted assets are not presented on the balance sheet of the governmental funds, however, certain assets of these funds are restricted as to use. 39

63 Notes to Financial Statements Note 1. Summary of Significant Accounting Policies (Continued) Capital assets: Capital assets, which include land, public art, property, plant, equipment and infrastructure assets, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements and the proprietary fund statement of net assets. Infrastructure assets are defined as public domain capital assets such as roads, bridges, sidewalks, traffic signals, and similar items that are immovable and of value only to the government unit. The City capitalizes all capital assets with a cost in excess of a $1,000 threshold and an estimated life greater than one year. Capital assets are recorded at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are recorded at estimated fair value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized, but are expensed as incurred. Capital assets are depreciated using the straight-line method over the estimated useful lives of the related assets. The ranges of the useful lives are as follows: Years Equipment 3 7 Vehicles 4 15 Building improvements Land improvements Other infrastructure Buildings 40 Roads 50 Bridges 40 Deferred and unearned revenue: Deferred revenue is recorded for governmental fund receivables that are measurable, but not available. In addition, resources received that do not meet the criteria for revenue recognition, such as business taxes collected in advance, are recorded as unearned revenue in the government-wide and the fund statements. Compensated absences: The City grants a specific number of vacation and sick leave hours with pay to its employees. When terminated, an employee is paid for accumulated vacation leave and a percentage of unused sick leave hours subject to certain limitations. The cost of accumulated vacation and sick leave is recorded in the government-wide financial statements and Proprietary Funds for both the current and long-term portions. Expenditures for accumulated compensated absences have been recorded in the governmental funds only if they have matured, for example, as a result of employee resignations and retirements. 40

64 Notes to Financial Statements Note 1. Summary of Significant Accounting Policies (Continued) Long-term obligations: In the government-wide and the Proprietary Funds financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or Proprietary Fund type statement of net assets. Bonds payable are reported net of the applicable bond premiums or discounts and deferred refunding amounts. Bond premiums, discounts, and issuance costs are amortized over the life of the bonds using the interest method. Deferred amounts on refunding are amortized over the shorter of the remaining life of the old debt or the life of the new debt using the straight-line method, which does not result in a material difference from the effective interest method. Revenue bonds payable are presented net of applicable bond discounts, premiums and deferred refunding amounts, whereas issuance costs are recorded as deferred charges. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Payment of debt principal is reported as an expenditure. Fund equity: In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. Unreserved, undesignated fund balance indicates funds that are available for current expenditures. Deficit fund balances will require future funding. Net assets: Net assets of the government-wide and proprietary funds are categorized as invested in capital assets net of related debt, restricted or unrestricted. The first category represents capital assets, less accumulated depreciation and net of any outstanding debt associated with the acquisition of capital assets. Restricted net assets represent net assets that are restricted by requirements of revenue bonds and other externally imposed constraints. This includes unspent bond proceeds required to be held in reserve. Unrestricted net assets represent the net assets of the City which are not restricted for any project or purpose. Self-insurance: The City is partially self-insured for general and auto liability, property, workers compensation, and employees health and dental. The operating funds are charged premiums by the City s Self-Insurance Fund, which is accounted for as an Internal Service Fund. The accrued liability for estimated claims represents an estimate of the eventual loss on claims including claims incurred but not yet reported. G. Other Policies Property taxes: The City s property tax is levied, becomes a lien on real and personal property located in the City, and is recorded as a receivable on November 1 of each year based upon the assessed value established by the Broward County Property Appraiser as of the prior January 1. The City is permitted by Florida law to levy ad valorem taxes for real and tangible personal property taxes up to $10 per $1,000 of assessed value, except for special benefits and debt service obligations which may be issued with the approval of those taxpayers subject to ad valorem taxes. The assessed value as of January 1, 2008, upon which the 2009 fiscal year levy was based, was approximately $9.8 billion. Taxes were levied at $ per $1,000 for the General Fund and $ per $1,000 for the Debt Service Fund for the year ended September 30,

65 Notes to Financial Statements Note 1. Summary of Significant Accounting Policies (Continued) Taxes become payable on November 1 each year and are discounted 1% for each month for payment prior to the following March 1. All unpaid taxes become delinquent on April 1 and are subject to the issuance of Tax Sale Certificates on June 1. Tax collections for the year ended September 30, 2009, were 99.7% of the tax levy, net of discounts allowed. The City s tax revenue is first paid to the Broward County Tax Collector who remits to the City funds collected following a calendar prescribed by law. The City s taxes are billed along with all other taxes due to Broward County taxing entities. The Tax Collector pays the City interest on monies held from the day of collection to the day of distribution. The City has no control over the investment program of the Tax Collector as this program is governed by Florida Statutes. Use of estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States ( GAAP ) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenditures/expenses during the reporting period. Actual results could differ from management s estimates. Significant estimates used in the financial statements include the liability for self-insured losses. Encumbrances: Encumbrance accounting, under which purchase orders, contracts and other commitments for expenditure of funds are recorded in order to reserve that portion of the applicable appropriation, is utilized in the Governmental Funds. Open encumbrances at year-end are reported as reservations of fund balances, except in the General Fund and Special Revenue Funds (nonmajor governmental funds) where open encumbrances lapse at yearend. Encumbrances do not constitute expenditures or liabilities. Note 2. Deficit Fund Balances of Individual Funds and Budgetary Control The fund deficit in the Grants Fund totaling $2,219,149 is expected to be eliminated by revenue in future years. For the year ended September 30, 2009, transfers out exceeded appropriations in the General Fund, (the legal level of budgetary control) by $4,505,886, mainly due to $3,938,243 transfer to fund capital projects and $537,643 for funds transferred to the debt service fund to prepay an outstanding loan. The $3.9 million transfer to the Capital Projects Fund is part of the City s Financial Strategy as detailed in the City s 2009 Business Plan that was approved by the City Commission. In the Debt Service Fund, net expenditures exceeded appropriations by $468,942, mainly due to the decision to prepay $537,243 on an outstanding loan balance. In the Center for the Arts Fund, expenditures exceeded appropriations by $3,663, mainly due to additional expenditures for repair and maintenance. Note 3. Cash and Cash Equivalents and Investments The City maintains a cash and cash equivalents and investments pool that is available for use by all funds except for those in which the cash and investments must be segregated due to bond indenture or other legal restrictions such as in the Pension Trust Funds. Interest earned on pooled cash and investments is allocated to funds based on average daily balances. 42

66 Notes to Financial Statements Note 3. Cash and Cash Equivalents and Investments (Continued) The following are components of the City s cash and cash equivalents and investments at September 30, 2009: Cash and Cash Equivalents Primary Government Activities: Petty Cash $ 12,029 Deposits with financial institutions and overnight repurchase investments ($9,196,547) 10,876,999 State Board of Administration Local Government Surplus Trust Fund 153,749 U.S. Government Securities 3,465,654 Commercial Paper 434,804 Certificate of Deposits 499,922 Money Market Mutual Fund 6,329,547 Total government cash and cash equivalents 21,772,704 Pension Trust Funds: Deposits with financial institutions 226,228 Florida Municipal Investment Trust Fund 1,293,553 Money Market Mutual Funds 5,577,375 Total pension cash and cash equivalents 7,097,156 Total cash and cash equivalents 28,869,860 Investments Primary Government Activities: U.S. Government Securities 50,375,861 State Tax Exempt Debt 398,820 Asset Backed Securities 3,754,095 Corporate Bonds 17,534,835 Total government investments 72,063,611 Pension Trust Funds: Common Stock 66,623,056 Common Stock Mutual Funds 1,686,731 U.S. Government Securities 22,892,623 Asset Backed Securities 613,264 Corporate Bonds 6,565,815 Bond Mutual Fund 8,380,594 Investments in Mutual Funds for 401(a) Plans 41,433,711 Investments in Mutual Funds for Volunteer Firefighters Pension Plan 376,336 Total pension investments 148,572,130 Total investments 220,635,741 Total cash and investments $ 249,505,601 Statement of Net Assets Cash and cash equivalents-unrestricted $ 21,210,700 Cash and cash equivalents-restricted 562,004 Investments-unrestricted 56,976,921 Investments-restricted 15,086,690 Fiduciary Funds 93,836,315 Cash and cash equivalents 7,097,156 Investments 148,572,130 Total cash and investments $ 249,505,601 43

67 Notes to Financial Statements Note 3. Deposits Cash and Cash Equivalents and Investments (Continued) The deposit authority of the City is prescribed by Florida Statute Chapter 280. City policy conforms to state statute. Deposits whose value exceeds the limits of federal depository insurance are entirely insured or collateralized pursuant to Florida Statues, Chapter 280, Florida Security for Public Deposits Act (the Act ). Under this Act, financial institutions which are qualified as public depositories place, with the State Board of Administration, securities which have a market value equal to 50% of the average daily balance for each month of all public deposits in excess of applicable deposit insurance. The Public Deposit Security Trust Funds have a procedure to allocate and recover losses in the event of default or insolvency. When public deposits are made in accordance with Chapter 280, no public depositor shall be liable for any loss thereof. All City depositories at year-end were designated as qualified public depositories. At year-end, the carrying amount of the City s deposits, which includes petty cash on hand of $12,029, were $1,912,158. The bank balance for these deposits, excluding overnight repurchase investments, totaled $3,534,479. Bank balances covered by federal deposit insurance totaled $892,551 with the remaining funds insured by the banks participation in the Florida Security for Public Deposits Act. Investments Florida Statutes and the City s investment policy authorize investments in certificates of deposit, obligations of the U.S. Treasury, its agencies and instrumentalities, prime commercial paper, fixed income mutual, money market mutual funds, state and local government taxable and tax-exempt debt, corporate notes and pooled investments of the State Board of Administration Local Government Surplus Funds Trust Fund ( SBA ). As of September 30, 2009, the City had the following debt-type investments and maturities: Remaining Maturity (in Years) Less Than More Than Fair Investment Type 1 Year 1-5 Years 6-10 Years 10 Years Value State Board of Administration $ 153,749 $ - $ - $ - $ 153,749 Money Market Mutual Fund 6,329, ,329,547 Commercial Paper 434, ,804 Certificate of Deposits 499, ,922 Overnight Repurchase Agreement 9,196, ,196,547 U.S. Government Securities 26,893,154 26,306, ,612-53,841,515 State Tax Exempt Debt - 398, ,820 Asset-Backed Securities 693,365 3,060, ,754,095 Corporate Bonds 4,042,808 13,492, ,534,835 $ 48,243,896 $ 43,258,326 $ 641,612 $ - $ 92,143,834 The above investment schedule includes $3,465,654 of U.S. Government Securities and $434,804 of Commercial Paper that has a maturity schedule of less than three months. Therefore, those amounts are classified as cash and cash equivalents on the financial statements. 44

68 Notes to Financial Statements Note 3. Cash and Cash Equivalents and Investments (Continued) Interest Rate Risk. Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. As a means of limiting its exposure to fair value losses arising from rising interest rates, the City s investment policy limits the City s investment portfolio to maturities of 10 years or less with no more than 50% of the City s investment portfolio in maturities of more than three years. The average maturity of the portfolio as a whole may not exceed 3 years. As of September 30, 2009, the average maturity of the City s investment portfolio did not exceed 3 years. See table on previous page for segmented maturity data for City s debt type investments. Credit Risk. State law limits investments in commercial paper to the top two ratings used by nationally recognized statistical rating organizations ( NRSROs ). The City s policy is to limit its investments in commercial paper to the top rating issued by NRSROs and to limit its investments in State and Local Government Debt and Fixed Income Mutual /Money Market Funds to funds with underlying securities rated at least A by NRSROs. The City has investments in the Local Government Surplus Funds Trust Fund Investment Pool ( LGIP ), a 2a7-like investment pool and the Fund B Surplus Funds Trust Fund ( Fund B ) a fluctuating net asset value ( NAV ) pool. The City s overnight repurchase agreement is with a financial institution and does not have a credit rating. It is fully collateralized with U.S. Government Securities. The table does not include U.S. Government Securities as these securities are backed by the full faith and credit of the U.S. Government. The City s investments are rated as follows: Investment Type Rating Fair Value Commercial Paper A-1 $ 434,804 State Tax Exempt Debt AAA 398,820 Asset-Backed Securities AAA 3,301,830 Asset-Backed Securities AA3 452,265 Money Market Mutual Fund AAA 6,229,109 Corporate Bonds AAA 8,901,453 Corporate Bonds AA1 1,274,424 Corporate Bonds AA2 1,729,663 Corporate Bonds AA3 1,568,758 Corporate Bonds A1 1,445,080 Corporate Bonds A2 2,185,119 Corporate Bonds A3 430,338 Money Market Mutual Fund Unrated 100,438 SBA AAA 14,850 SBA Unrated $ 138,899 28,605,850 45

69 Notes to Financial Statements Note 3. Cash and Cash Equivalents and Investments (Continued) Custodial Credit Risk. For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City s investment policy requires securities, with the exception of securities related to overnight repurchase agreements, be held by a third party custodian and are registered in the City s name. The overnight repurchase agreement is collateralized by investments in U.S. Government Securities. As of September 30, 2009, the City s investment portfolio was held with a third-party custodian as required by the City s investment policy. Concentration of Credit Risk. The City limits the amount that can be invested in any one issuer of Federal Instrumentalities to 25% of the portfolio. Investments that represent more than 5% of the City s investments are listed below: Issuer Investment Type Reported Amount Percentage Federal Home Loan Banks Federal Instrumentalities $ 9,088,394 13% Federal National Mortgage Association Federal Instrumentalities 8,352,734 12% Federal Farm Credit Bank Federal Instrumentalities 5,297,737 7% Federal Home Loan Mortgage Corporation Federal Instrumentalities 3,583,718 5% Total $ 26,322,583 Pension Funds The City has three pension plans, the General Employees Retirement Plan (the General Employees Plan ), the Police Officers Retirement Plan (the Police Plan ) and the Firefighters Retirement Plan (the Fire Plan ), whose investments are held separately from those of other City funds. As prescribed by plan documents, the plans are authorized to invest in obligations of the U.S. Government, domestic and international equities, fixed income investments, commercial paper, banker s acceptance and money market funds and mutual funds. The Police Plan may also invest in State of Israel bonds. The investments of the plans are managed by independent investment managers in accordance with the plan provisions as established by each pension board. The General Employees Plan has adopted an investment policy to allocate forty percent of fund assets to equities with the balance invested in fixed income securities and cash equivalents. The Police Plan and the Fire Plan have adopted an investment policy to allocate seventy percent of fund assets to equities of which no more than 10% can be invested in foreign securities with the balance invested in fixed income securities and cash equivalents. 46

70 Notes to Financial Statements Note 3. Cash and Cash Equivalents and Investments (Continued) Interest Rate Risk. For the City s pension plans, investment maturities are significantly longer. The pension systems may invest in various mortgage-backed securities, such as collateralized mortgage obligations. These securities are based on cash flows on underlying mortgages. Therefore, they are sensitive to prepayments by mortgagees, which may result from a decline in interest rates. The pension plans do not have a formal investment policy that limits investment maturities as a means of managing their exposure to fair value losses arising from increasing interest rates: Remaining Maturity (in Years) Less Than More Than Fair Investment Type 1 Year 1-5 Years 6-10 Years 10 Years Value U.S. Government Securities $ 462,515 $ 7,876,730 $ 6,485,076 $ 7,979,674 $ 22,803,995 Municpal Debt ,628 88,628 Asset-Backed Securities - 613, ,264 Corporate Bonds 643,360 3,107,137 2,760,551 54,767 6,565,815 Money Market Mutual Funds 5,577, ,577,375 Bond Mutual Fund - - 8,380,594-8,380,594 $ 6,683,250 $ 11,597,131 $ 17,626,221 $ 8,123,069 $ 44,029,671 Credit Risk. The pension plans have no limits imposed on fixed income securities issued directly by the U.S. Government or any agency or instrumentality thereof. The General Employees Plan limits corporate fixed income securities to Baa or higher by Moody s rating services or BBB or higher by Standard and Poor s rating services. Investments in Collateralized Mortgage Obligations ( CMOs ) are limited to issues that are backed by mortgage securities issued, guaranteed or fully insured by Government National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association or are rated Aaa by Moody s or AAA by Standard and Poor s rating services. The Police Plan limits corporate fixed income securities to A or higher by Moody s or Standard and Poor s rating services and limits money market funds to a rating of A1 or higher by Standard & Poor s or P1 by Moody s. The Fire Plan limits corporate fixed income securities to AA or higher by Moody s rating services, Standard and Poor s rating services or Fitch s rating services and limits money market funds to a rating of A1or higher by Standard & Poor s or P1 by Moody s. 47

71 Notes to Financial Statements Note 3. Cash and Cash Equivalents and Investments (Continued) The pension plans fixed income securities were rated by Standard and Poor s or Moody s Investors Services as follows: Investment Type Rating Fair Value U.S. Government Securities AAA $ 13,337,684 Municipal Debt AA+ 31,171 Municipal Debt AA 57,457 Asset-backed securities AAA 613,264 Corporate Bonds AAA 730,081 Corporate Bonds Aa1 181,456 Corporate Bonds Aa2 580,156 Corporate Bonds AA 244,990 Corporate Bonds AA- 198,746 Corporate Bonds A+ 360,909 Corporate Bonds A1 1,700,050 Corporate Bonds A2 1,741,990 Corporate Bonds A3 791,092 Corporate Bonds Baa1 $ 36,345 20,605,391 The following fixed income investments of the pension plans were not rated as of September 30, 2009: Investment Type Fair Value U.S. Government Securities $ 9,466,311 As of September 30, 2009, Morningstar rating service rated the Fire Plan s investment in a bond mutual fund 5 stars. Custodial Credit Risk. Custodial credit risk is the risk that, in the event of the failure of the counterparty, the Plan will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The Plans do not have an investment policy for custodial credit risk. As of September 30, 2009, the Plans investment portfolios were held with a third party custodian in each Plan s name. Concentration of Credit Risk. Investments that represent more than 5% of investments in the various pension plans are listed below: Reported Plan Issuer Investment Type Amount Percentage Police Fannie Mae Pool Federal Instrumentalities $ 5,039,182 6% General Employees' Federal Home Loan PC Pool Federal Instrumentalities $ 350,146 6% 48

72 Notes to Financial Statements Note 3. Cash and Cash Equivalents and Investments (Continued) Defined Contribution Plans The City offers a variety of defined contribution plans to its employees. Of the $41,433,711 invested in these plans, $2,117,452 is invested in money market and bond mutual funds rated as follows: Weighted Effective Average Reported Issuer Maturity Maturity Amount Mutual Funds Rated 5 stars by Morningstar 3.7 years $ 584,908 Mutual Funds Rated 4 stars by Morningstar 4.53 years 356,627 Mutual Funds Rated 4 stars by Morningstar 5.21 years 738,170 Mutual Funds Rated 4 stars by Morningstar 9.45 years 259,452 Mutual Funds Not Rated by Morningstar 48 days 178,295 Total $ 2,117,452 OPEB Trust At year-end, the City invested $1,293,553 in the Florida Municipal Pension Trust Fund to provide funding for other post-employment benefits offered by the City. The Florida Municipal Pension Trust Fund is managed through the Florida Municipal Investment Trust (FMIvT), a Local Government Investment Pool. The following risk information relates to the FMIvT. Interest Rate Risk for FMIvT: Fixed Income Funds Duration WAM 0-2 Year High Quality Bond Fund Year High Quality Bond Fund Intermediate High Quality Bond Fund Broad Market High Quality Bond Fund Expanded High Yield Bond Fund Credit Risk for FMIvT: Fixed Income Funds Fitch Rating Standard & Poor s 0-2 Year High Quality Bond Fund AAAf/S Year High Quality Bond Fund AAA/V2 Intermediate High Quality Bond Fund AAA/V3 Broad Market High Quality Bond Fund AA/V4 Expanded High Yield Bond Fund Not Rated 49

73 Notes to Financial Statements Note 3. Cash and Cash Equivalents and Investments (Continued) Discretely Presented Component Unit At year-end, the carrying amount of the Community Redevelopment Agency s deposits was $1,118,618 and the bank balance for these deposits totaled $1,118,771. Bank balances covered by federal deposit insurance totaled $250,000 with the remaining funds insured by the banks participation in the Florida Security for Public Deposits Act. Investments totaling $4,273 and $18,484 are invested in pooled investments of the State Board of Administration ( SBA ) LGIP and Fund B, respectively. The average maturity of these investments is less than one year. The LGIP is rated AAA by Standard and Poor s. Fund B is not rated. The Community Redevelopment Agency does not have a separate deposit and investment policy and it follows the deposit and investment policies of the City as described above. Note 4. Receivables and Payables Year-end receivables for the City s governmental individual major and nonmajor funds, internal service funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Charter Internal Governmental General Fire School Service Total Receivables: Accounts $ 12,914,638 $ 3,118 $ 10,552 $ 1,831 $ 12,930,139 Allowance for uncollectible accounts (8,326,134) (2,060) - - (8,328,194) Net governmental receivables $ 4,588,504 $ 1,058 $ 10,552 $ 1,831 $ 4,601,945 Receivables for the City s business-type activities, including individual major funds and allowances for uncollectible accounts, are as follows: Water and Center for Business-Type Sewer the Arts Total Receivables: Accounts $ 1,439,629 $ - $ 1,439,629 Unbilled 970, ,886 Allowance for uncollectible accounts receivable (185,625) - (185,625) Net business-type receivables $ 2,224,890 $ - $ 2,224,890 50

74 Notes to Financial Statements Note 4. Receivables and Payables (Continued) Payables at year-end for the City s governmental individual major and nonmajor funds, internal service funds in the aggregate, are as follows: General G.O. Charter Capital 2006 Other Internal Governmental General Grants Fire School Projects Series Governmental Service Total Payables: Vendors $ 737,092 $ 301,341 $ 186,294 $ 1,100,920 $ 250,902 $ 542,082 $ 3,681 $ 125,221 $ 3,247,533 Retainage - 78, , , ,712 Salaries and benefits 2,564, , ,679 3,083,352 Net governmental payables $ 3,301,101 $ 379,643 $ 652,279 $ 1,100,920 $ 259,547 $ 961,847 $ 4,360 $ 177,900 $ 6,837,597 Payables for the City s business-type activities, including individual major funds, are as follows: Water and Center for Business-Type Sewer the Arts Total Payables: Vendors $ 748,415 $ 15,038 $ 763,453 Salaries and benefits 102, ,471 Other 5,044-5,044 Net business-type payables $ 855,930 $ 15,038 $ 870,968 Note 5. Interfund Receivables, Payables and Transfers During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as due from other funds or due to other funds on the governmental funds balance sheet and proprietary funds statement of net assets. The composition of interfund balances as of September 30, 2009 is as follows: Due from/to Other Funds Receivable Fund Payable Fund Purpose for Balance Amount General Fund Grants Fund Short-term loan to fund operations $ 1,652,996 General Fund Water and Sewer Fund Short-term loan to fund operations 100,000 General Fund Center for the Arts Fund Short-term loan to fund operations 147,338 $ 1,900,334 51

75 Notes to Financial Statements Note 5. Interfund Receivables, Payables and Transfers (Continued) Transfers In General Total Debt Capital Nonmajor Water Center for Internal Transfers Transfers Out General Service Fire Projects Governmental and Sewer the Arts Service Out General $ - $ 3,746,902 $ 956,042 $ 3,968,243 $ - $ - $ 395,000 $ - $ 9,066,187 Debt Service 518, ,217 Grants , ,073 Fire - 232,860 72, ,060 Charter School , ,866 Nonmajor Governmental 86, , ,097 Water and Sewer ,772 8,772 Total transfers in $ 604,386 $ 3,979,762 $ 956,042 $ 4,294,371 $ 102,866 $ 31,073 $ 395,000 $ 8,772 $ 10,372,272 The transfers to the General Fund relate primarily to a transfer of $518,000 of loan proceeds from the Debt Service Fund from the State Revolving Fund Loan to fund capital outlay expenditures and to a transfer of $86,000 to close the Charter School Construction Fund. The transfers to the Debt Service Fund were made primarily to make principal and interest payments. The transfers to the Fire Fund of approximately $759,000 were for ad valorem and non-ad valorem taxes related to churches and schools and $197,000 as an operating subsidy. Over $3.9 million of transfers to the General Capital Projects Funds were to be compliant with the Financial Strategy imposed in the 2009 City s Business Plan. The other transfers of approximately $320,000 relate to capital projects for fiscal year 2009 and future projects. The transfer to the Center for the Arts Fund is a subsidy that the City makes towards operations of the fund. 52

76 Notes to Financial Statements Note 6. Capital Assets and Construction Commitments Capital assets activity for the year ended September 30, 2009 was as follows: Primary Government Governmental Activities (Including Beginning Ending Internal Service Funds) Balance Increases Decreases Balance Capital assets not being depreciated: Land $ 29,516,821 $ - $ - $ 29,516,821 Public Art 291,744 12, ,944 Construction in progress 2,517,064 6,044,854 (861,670) 7,700,248 Total capital assets not being depreciated 32,325,629 6,057,054 (861,670) 37,521,013 Capital assets being depreciated: Land improvements 37,464,543 1,107,533 (74,630) 38,497,446 Buildings and improvements 68,889, ,062-69,396,464 Infrastructure 81,481,266 2,229,004-83,710,270 Equipment 47,127,072 4,859,241 (905,320) 51,080,993 Total capital assets being depreciated 234,962,283 8,702,840 (979,950) 242,685,173 Less accumulated depreciation for: Land improvements 16,341,638 2,273,757 (74,630) 18,540,765 Buildings and improvements 18,113,022 2,119,495-20,232,517 Infrastructure 43,214,583 2,670,624-45,885,207 Equipment 31,095,329 4,400,528 (898,117) 34,597,740 Total accumulated depreciation 108,764,572 11,464,404 (972,747) 119,256,229 Total capital assets being depreciated, net 126,197,711 (2,761,564) (7,203) 123,428,944 Governmental activities capital assets, net $ 158,523,340 $ 3,295,490 $ (868,873) $ 160,949,957 Business-Type Activities: Water and Sewer: Capital assets not being depreciated: Land $ 198,576 $ - $ - $ 198,576 Construction in progress 265, ,648 (265,486) 209,648 Total capital assets not being depreciated $ 464,062 $ 209,648 $ (265,486) $ 408,224 53

77 Notes to Financial Statements Note 6. Capital Assets and Construction Commitments (Continued) Beginning Ending Business-Type Activities (Continued) Balance Increases Decreases Balance Capital assets being depreciated: Land improvements $ 73,098 $ 13,249 $ - $ 86,347 Buildings 28,358,522 1,221,372 (217,260) 29,362,634 Infrastructure 50,266,198 1,991,073 (1,447,047) 50,810,224 Equipment 2,500, ,598 (106,800) 2,690,103 Total capital assets being depreciated 81,198,123 3,522,292 (1,771,107) 82,949,308 Less accumulated depreciation for: Land improvements 13,401 11,667-25,068 Buildings 14,985, ,267 (217,260) 15,751,095 Infrastructure 29,332,250 1,638,261 (1,447,047) 29,523,464 Equipment 776, ,522 (106,800) 855,361 Total accumulated depreciation 45,107,378 2,818,717 (1,771,107) 46,154,988 Total capital assets being depreciated, net 36,090, ,575-36,794,320 Water and sewer capital assets, net 36,554, ,223 (265,486) 37,202,544 Center for the Arts: Capital assets not being depreciated: Land 432, ,982 Total capital assets not being depreciated 432, ,982 Capital assets being depreciated: Land improvements 281, ,269 Buildings 13,014,913 12,086-13,026,999 Infrastructure 13, ,068 Equipment 938,209 11,006 (3,224) 945,991 Total capital assets being depreciated 14,247,459 23,092 (3,224) 14,267,327 Less accumulated depreciation for: Land improvements 170,507 25, ,958 Buildings 6,297, ,102-6,752,941 Infrastructure 4,582 1,270-5,852 Equipment 684,235 64,569 (3,224) 745,580 Total accumulated depreciation 7,157, ,392 (3,224) 7,700,331 Total capital assets being depreciated, net 7,090,296 (523,300) - 6,566,996 Center for the Arts capital assets, net 7,523,278 (523,300) - 6,999,978 Total business-type activities $ 44,078,085 $ 389,923 $ (265,486) $ 44,202,522 54

78 Notes to Financial Statements Note 6. Capital Assets and Construction Commitments (Continued) Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government $ 437,705 Public safety: Police 1,787,446 Fire 1,318,859 Parks and recreation 3,944,152 Public works 3,127,671 Development services 135,193 Conference center 281,683 Educational programs 431,695 Total depreciation expense governmental activities $ 11,464,404 Business-type activities: Water and sewer $ 2,818,717 Center for the Arts 546,392 Total depreciation expense business-type activities $ 3,365,109 Construction Commitments The City has active construction projects as of September 30, Five significant projects that were ongoing as of September 30, 2009 were as follows: Remaining Project Spent-to-Date Commitment Police and Fire hardening project $ 5,221,907 $ 5,561,654 Entranceway beautification 437,782 74,609 Water treatment plant 112,950 85,450 Raw water supply wells 70,740 58,160 Master plan Westside 51, ,677 $ 5,894,589 $ 5,933,550 55

79 Notes to Financial Statements Note 7. Long-Term Liabilities The following is a summary of changes in the City s bonded and other indebtedness for the year ended September 30, 2009: Governmental Activities Debt Service Fund (Including Beginning Ending Due Within Internal Service Funds) Balance Additions Reductions Balance One Year Bonds: General obligation bonds $ 13,500,000 $ - $ - $ 13,500,000 $ - General obligation refunding bonds 10,170,000 - (1,145,000) 9,025,000 1,185,000 Revenue refunding bonds 16,970,000 - (1,180,000) 15,790,000 1,220,000 State revolving fund loans payable - 518,217 (518,217) - - Capital revenue refunding bonds 16,830,000 - (1,045,000) 15,785,000 1,075,000 Total bonds 57,470, ,217 (3,888,217) 54,100,000 3,480,000 Deferred loss on advance refunding (1,694,612) - 485,862 (1,208,750) (488,563) Bond premium (discount) 77,817 - (20,481) 57,336 18,103 Total bonds, net 55,853, ,217 (3,422,836) 52,948,586 3,009,540 Liability for monitoring and maintenance of landfill 260,000 - (16,000) 244,000 22,000 Compensated absences 4,168,745 5,068,788 (4,949,772) 4,287,761 4,287,761 Total governmental activity long-term liabilities $ 60,281,950 $ 5,587,005 $ (8,388,608) $ 57,480,347 $ 7,319,301 Business-Type Activities Water and Sewer Fund: Revenue refunding bonds $ 12,490,000 $ - $ (2,230,000) $ 10,260,000 $ 2,305,000 State revolving fund loans payable - 2,501,507-2,501,507 10,116 Total bonds and loans 12,490,000 2,501,507 (2,230,000) 12,761,507 2,315,116 Compensated absences 125, ,120 (151,969) 124, ,319 Total business-type activity long-term liabilities $ 12,615,168 $ 2,652,627 $ (2,381,969) $ 12,885,826 $ 2,439,435 For governmental activities, compensated absences are generally liquidated by the General Fund. Internal Service Funds predominately serve the governmental funds. Accordingly, their long-term liabilities totaling $80,673 for compensated absences are included as part of the above totals for governmental activities. 56

80 Notes to Financial Statements Note 7. Long-Term Liabilities (Continued) Description of individual bond issues outstanding summarized below are the bonds outstanding for the City s governmental activities: Purpose of Amount Amount Issue Issued Outstanding Interest Rate Governmental activities: General obligation bonds: Series 2003 A Refunding $ 3,080,000 $ 1,320, % Series 2005 A Refunding 4,705,000 3,270, % Series 2005 B Refunding 5,855,000 4,435, % Series 2006 Construction of Public Safety Facilities 13,500,000 13,500, % Total general obligation bonds 27,140,000 22,525,000 Revenue bonds: Series 2004 Franchise refunding Refunding 21,400,000 15,790, % Series 2008 Capital refunding Refunding 16,830,000 15,785, % Total revenue bonds 38,230,000 31,575,000 Total for governmental activities $ 65,370,000 $ 54,100,000 57

81 Notes to Financial Statements Note 7. Long-Term Liabilities (Continued) Description of individual bond issues outstanding summarized below are the bonds outstanding for the City s business-type activities: Purpose Amount Amount of Issue Issued/Awarded Outstanding Interest Rate Business-type activities: Water and Sewer Revenue Bonds: Series 1998, Refunding Refunding $ 9,675,000 $ 9,065, % Series 2002, Refunding Refunding 15,125,000 1,195, % State Revolving Loan Fund: DW Capital Improvement 6,700,000 1,913, % DW Capital Improvement 4,700,000 62, % DW Capital Improvement 4,200, % WW Capital Improvement 525, , % Total for business-type activities $ 40,925,646 $ 12,761,507 State Revolving Loans Payable Governmental Funds The City entered into a loan agreement with the State Department of Environmental Protection s Clean Water State Revolving Fund Loan Program and borrowed $518,217 to finance all labor, materials and equipment to construct the artificial turf project. The City repaid the loan balance in September Enterprise Funds The City entered into loan agreements with the State Department of Environmental Protection s Clean Water State Revolving Fund Loan Program and Drinking Water State Revolving Fund Loan Program to borrow up to $16,125,646. Through September 30, 2009, the City has borrowed $2,501,507 to finance the planning, design and construction of water and wastewater infrastructure improvements. The City is required to maintain rates and charges for services provided by the water and sewer systems which will be sufficient to provide revenue equal to or exceeding 1.15 times the sum of the semi-annual loan payments (debt service). The loans are payable in semiannual payments upon completion of the projects. The amount of semi-annual payments will be calculated based on the actual amount of the principal drawn under the agreements, as well as associated capitalized interest and loan issuance cost. These amounts will not be determined until each project is completed; the wastewater project funded by loan WW was completed during the fiscal year. The drinking water projects are not complete, therefore amortization schedules are not available at this time. 58

82 Notes to Financial Statements Note 7. Long-Term Liabilities (Continued) Pledged Revenue General long-term debt bonds are collateralized by multiple sources. For example, the general obligation bonds are secured by ad valorem taxes on all taxable property within the City and the full faith and credit and taxing power of the City. The City has pledged certain revenue to repay certain bonds and notes outstanding as of September 30, The following table reports the revenue, sometimes net of related operating expenses, pledged for each debt issue, the amounts of such revenue received in the current year, the current year principal and interest paid on the debt, the date through which the revenue is pledged under the debt agreement, and the total pledged future revenue for each debt, which is the amount of the remaining principal and interest on the bonds and notes at September 30, 2009: Outstanding Pledged Revenue Principal and Principal Pledged Description of Bonds Revenue Received Interest Paid and Interest Through Governmental Activities: Franchise Revenue Bonds 2004 Franchise Revenue $ 17,405,504 $ 1,758,206 $ 19,352, and Communications Services Tax Business-type Activities: Water & Sewer Revenue Bonds 1998 and 2002 and Florida DEP Revolving Loan Fund WW Net Water and Sewer 6,392,834 2,778,398 12,188,

83 Notes to Financial Statements Note 7. Long-Term Liabilities (Continued) Annual Requirements to Amortize Long-Term Debt At September 30, 2009, the annual requirements to amortize long-term debt, other than compensated absences and landfill liability, over the life of the debt is listed below: Governmental Activities Year Ending General Obligation Bonds Revenue Bonds Total September 30, Principal Interest Principal Interest Principal Interest 2010 $ 1,185,000 $ 848,531 $ 2,295,000 $ 1,145,144 $ 3,480,000 $ 1,993, ,225, ,454 2,365,000 1,070,919 3,590,000 1,881, ,265, ,679 2,430, ,419 3,695,000 1,763, ,320, ,291 2,510, ,206 3,830,000 1,639, ,005, ,291 2,600, ,681 3,605,000 1,509, ,435,000 2,809,393 14,520,000 2,680,306 19,955,000 5,489, ,515,000 1,643,888 4,855, ,469 11,370,000 1,910, ,575, , ,575, ,756 Total $ 22,525,000 $ 8,583,283 $ 31,575,000 $ 7,901,144 $ 54,100,000 $ 16,484,427 Business-Type Activities Year Ending Revenue Bonds SRF Loan Total September 30, Principal Interest Principal Interest Principal Interest 2010 $ 2,305,000 $ 469,763 $ 10,116 $ 14,160 $ 2,315,116 $ 483, ,525, ,988 21,045 13,880 2,546, , ,655, ,312 21,622 13,304 2,676, , ,775, ,200 22,214 12,712 2,797, , ,822 12,104 22,822 12, ,835 50, ,835 50, ,746 32, ,746 32, ,246 12, ,246 12,382 Total $ 10,260,000 $ 1,240,263 $ 525,646 $ 162,218 $ 10,785,646 $ 1,402,481 60

84 Notes to Financial Statements Note 7. Refunded Debt Long-Term Liabilities (Continued) The City has a number of bond issues that have been defeased and remain outstanding. The debt is considered extinguished in an in-substance defeasance and, accordingly, is not reflected in the accompanying financial statements. The following schedule is a summary of the remaining balance outstanding of defeased bonds as of September 30, 2009: Balance Type of Bond Issue Outstanding Water and Sewer Revenue Refunding Bond, Series 1992 A Defeased in 2002 $ 1,295,000 Franchise Revenue Bonds, Series 1995 Defeased in ,790,000 Franchise Revenue Refunding Bonds, Series 1996 Defeased in ,710,000 Franchise Revenue Refunding Bonds, Series 1998 Defeased in ,090,000 Franchise Revenue Bonds, Series 1999 Defeased in ,105,000 General Obligation Bonds, Series 1994 Defeased in ,390,000 General Obligation Bonds, Series 1995 Defeased in ,830,000 General Obligation Refunding Bonds, Series 1998 A&B Defeased in ,825,000 General Obligation Bonds, Series 1998 C&D Defeased in ,935,000 FIFC 2001A Capital Revenue Bonds Defeased in ,545,000 FIFC 2002B Capital Revenue Bonds Defeased in ,150,000 Total $ 84,665,000 Estimated Liability for Landfill Monitoring and Maintenance The City has an agreement with the Florida Department of Environmental Protection (contractor) to perform the longterm monitoring and maintenance of a closed landfill in Coral Springs and to pay the costs of such long-term monitoring and maintenance of the landfill. At this time, there is no reason for the City to believe that the contractor will not be financially capable of meeting the terms of the agreement. In accordance with U.S. Environmental Protection Agency rule Solid Waste Disposal and Facility Criteria and GASB Statement No. 18, Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care Costs, a liability has been established representing amounts estimated to be spent on the long-term monitoring and maintenance of the closed landfill. As of September 30, 2009, the total liability of the monitoring and maintenance of the landfill is estimated at $244,000 with $22,000 reserved for the landfill in the General Fund and recorded as a restricted net asset in the governmental activities. The City has the $22,000 in an escrow account to comply with Rule , Administrative Code for the closed landfill located in the City, which is the same amount as in the previous year. The $22,000 is in the City s Bank Atlantic Concentration Account, a cash account. The landfill liability will be reassessed on an annual basis, and any increase due to inflation, changes in technology, or additional long-term care requirements will be recorded as a current cost. 61

85 Notes to Financial Statements Note 8. Industrial Development Bonds Under provisions of the Florida Industrial Development Financing Act, to promote the City s economy and to increase the purchasing power and opportunities for gainful employment, the City has authorized and issued the following Industrial Development Bonds as of September 30, 2009: Company Series Authorized Issued Alliance Entertainment Corporation 1995 $ 6,977,000 $ 6,977,000 Brock Supply Company, Inc. 1997A 1,950,000 1,950,000 Brock Supply Company, Inc. 1997B 2,050,000 2,050,000 Unipower Corporation ,530,000 3,530,000 Coral Vutech Properties, LLC. 2009A 2,250,000 2,231,250 Coral Vutech Properties, LLC. 2009B 2,250,000 2,231,250 These bonds do not constitute a debt or liability of the City within the meaning of any constitutional or statutory limitation and, accordingly, are not reflected in the accompanying financial statements. Note 9. Restricted Net Assets Restricted net assets in the government-wide governmental statements include $5,559,303 related to forfeited confiscated property proceeds restricted for law enforcement use, $22,000 for monitoring and maintenance of a closed landfill and $1,762,806 for a bond reserve requirement per the bond covenants of the issue. Restricted net assets in the Water and Sewer Fund include $500,000 related to renewal and replacement of the City s water and sewer system and $2,204,325 for bond reserve requirements, per the bond covenants of the issues. Note 10. 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; employee health and natural disasters. The City s Self-Insurance Internal Service Fund is used to account for and finance both uninsured and insured risks of loss. Coverage is provided as follows: 62

86 Notes to Financial Statements Note 10. Risk Management (Continued) Self-Insured Aggregate Type Retention Stop Loss Auto Liability $ 25,000 $ 3,000,000 Health and Dental 275,000 9,317,285 Self-Insured Deductible Retention Stop Loss Property $ 100,000 $ - General Liability 25, ,098 Workers' Compensation as specified by applicable federal and Florida Statutes. Settled claims have not exceeded the City s retention and excess coverage in force in the last three years. All operating funds of the City participate in the program and make payments to the Self-Insurance Internal Service Fund based on estimates of the amounts needed to pay prior and current claims. The estimated liability on pending claims at September 30, 2009 of $3,730,318, is based on the requirements of Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicated that it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported ( IBNR ). Changes in the balances of claims liability for 2009 and 2008 are as follows: Claims payable, beginning of the year $ 3,620,000 $ 3,179,928 Incurred claims (including IBNRs) 9,424,263 8,452,805 Payments on claims (9,313,945) (8,012,733) Claims payable, end of the year $ 3,730,318 $ 3,620,000 Note 11. Contingency The City is a defendant in various legal actions. The ultimate outcome of the lawsuits is uncertain. However, in the opinion of the City s management and its legal counsel, the ultimate outcome will not have a material adverse effect on the City s financial condition. Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal 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, if any, to be immaterial. 63

87 Notes to Financial Statements Note 12. Employee Retirement Plans The City s employee retirement plans include three separate single-employer defined benefit plans, six defined contribution plans for general employees and City management, under contract with the International City Management Association Retirement Corporation ( ICMA-RC ) for which the City acts as an agent for participants, a defined contribution plan for the city commission, and a defined contribution plan for volunteer firefighters. City employees may participate in one plan. The Police and Fire Pension Plans issue stand-alone financial reports. Copies of these reports are available at the Financial Services Department in City Hall. The pension plan s financial statements are prepared using the accrual basis of accounting. Contributions from members are recorded in the period the City makes payroll deductions from participants. City contribution requirements are actuarially determined and remitted on a biweekly basis with the members contributions for the defined contribution plans and annually or semi-annually for the defined benefit plans. Benefit payments and refunds to members are recognized when due and payable in accordance with the terms of the plan. General Employees Retirement Plan Plan Description The General Employees Retirement Plan (the Plan ) is a single-employer defined benefit plan available to City employees, except sworn police officers. The General Employees Retirement Plan was established by the City Commission on June 1, 1973, and closed to new participants after January 1, The Plan is governed by certain provisions of Chapter 112, Florida Statutes. A Board of Trustee administers the Plan. All costs of administering the Plan are paid from plan assets. As of October 1, 2008, employee membership data related to the Plan was as follows: Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving them 53 Current employees: Vested 8 Total 61 The Plan provides retirement benefits as well as death and disability benefits. Benefits vest 50% after five years of continuous service, plus 5% for each additional year to 100% after 15 years. Employees who retire at age 55 with 10 years of service are entitled to a retirement benefit, payable monthly for life, in an amount equal to 3% of average monthly earnings times continuous service after January 1, 1991 and 2.5% of average monthly earnings times continuous service prior to January 1, 1991 for each year of credited service. Average monthly earnings are equal to 1/12 of the average annual earnings for the highest consecutive three years of the 10 full years immediately preceding actual retirement. Active members contributing 10% of earnings are also entitled to a 2% cost-of-living adjustment (COLA) beginning at retirement. On January 18, 2000, the City Commission approved a monthly stipend for future retirees of $200 from retirement to age 65 and $150 after age 65. Covered employees are required to contribute 8% (or 10% if electing the COLA) of their salary to the Plan. If an employee leaves covered employment or dies before five years of credited service, accumulated employee contributions plus 3% interest for each completed year of service are refunded to the employee or designated beneficiary. The City Commission establishes and may amend the contribution requirements of the plan members and the City. 64

88 Notes to Financial Statements Note 12. Employee Retirement Plans (Continued) Funding policy The following table provides information concerning funding policies: Valuation date October 1, 2008 Actuarial cost method Entry age normal actuarial cost method Amortization method for unfunded actuarial accrued liabilities Level payment, closed Amortization period 15 years Actuarial asset valuation method Market value Actuarial assumptions: Assumed rate of return on investments 8% per annum Salary increases Assumed salaries increase at 5% per year Cost-of-living adjustments 2% Actuarially Determined Contribution Requirements and Contributions Made The Plan s funding policy provides for periodic employer contributions at actuarially determined rates that, expressed as percentages of annual covered payroll, are sufficient to accumulate sufficient assets to pay benefits when due. Level percentages of payroll contribution rates are determined using the entry age normal actuarial cost method. Unfunded actuarial accrued liability is amortized over 15 years. Plan member contributions are recognized in the period in which the contributions are due. City contributions to the plan, as calculated by the plan actuary, are recognized as revenue when due and the City has made a formal commitment to provide the contributions. The City s and employees contributions for the fiscal year ended September 30, 2009 were $500,000 and $43,282, respectively. These were made in accordance with actuarially determined contribution requirements ascertained through an actuarial valuation performed at October 1, Trend information Trend information indicates the progress made in accumulating sufficient assets to pay benefits when due. An analysis of funding progress for the fiscal year ended September 30, 2009, for the General Employees Retirement Plan is as follows: Annual Percentage Pension of APC Net Pension Fiscal Year Ended Cost (APC) Contributed Obligation September 30, 2009 $ 408, % $ 131,262 September 30, , % 220,958 September 30, , % 248,663 65

89 Notes to Financial Statements Note 12. Employee Retirement Plans (Continued) Police Officers Retirement Plan Plan Description The Police Officers Retirement Plan (the Police Plan) is a single-employer defined benefit plan, which covers all full-time sworn police officers. The Police Plan was established by the City Commission on June 1, The Police Plan is also governed by certain provisions of Chapters 112 and 185, Florida Statutes. A Board of Trustee administers the Police Plan. All costs of administering the Police Plan are paid from plan assets. As of October 1, 2008, employee membership data related to the Police Plan was as follows: Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not receiving them 125 Current employees: Vested 68 Partially vested 33 Nonvested 63 Total 289 The Police Plan provides retirement benefits as well as death and disability benefits. Eligibility for normal retirement is based on 20 years of continuous service regardless of age (or age 55 with 10 years of service). Participants are eligible for early retirement at age 50 with at least 10 years of continuous service. The monthly retirement benefit shall be an amount determined as follows: 3.5% of the average monthly earnings times continuous service. The maximum monthly retirement benefits shall be an amount equal to 87.5% of average monthly earnings. Average monthly earnings means 1/12 of the arithmetic average annual earnings for the highest consecutive three years of the 10 full years immediately preceding the actual retirement or termination date of a member, provided that if a member has been employed for fewer than three years such average shall be taken only over the period of his actual employment. Earnings mean all compensation excluding leave payouts at separation and offduty details. For purposes of inclusion in earnings, overtime shall be limited to 300 hours per calendar year, or a prorated amount for a partial year. Compensation other than base salary shall be limited to 14.5% of base salary. All participants are required to contribute 9.875% of their salary to the plan. If a participant terminates employment, or dies before five years of credited service, accumulated employee contributions plus 3% interest for each completed year of service are refunded to the employee or designated beneficiary. The City Commission establishes and may amend the contribution requirements of the plan members and the City. 66

90 Notes to Financial Statements Note 12. Employee Retirement Plans (Continued) Funding policy The following table provides information concerning funding policies: Valuation date October 1, 2008 Actuarial cost method Frozen entry age Amortization method for unfunded actuarial accrued liabilities Level percent, open Amortization period 30 years Actuarial asset valuation method Five-year smoothed market value Actuarial assumptions: Assumed rate of return on investments 8.75% per annum* Salary increases Assumed salaries increase at 6.% per year* Cost-of-living adjustments 2.5% *Includes inflation at 3% Actuarially Determined Contribution Requirements and Contributions Made The Police Plan s funding policy provides for periodic employer contributions at actuarially determined rates that, expressed as percentage of annual covered payroll, are sufficient to accumulate sufficient assets to pay benefits when due. Level percentages of payroll contribution rates are determined using the entry age actuarial cost method with frozen initial liability. Significant actuarial assumptions used to compute contribution requirements are the same as those used to compute the pension benefit obligation described above. Unfunded actuarial accrued liability is amortized over 30 years. Police Plan member contributions are recognized in the period in which the contributions are due. City contributions to the plan, as calculated by the plan actuary, are recognized as revenue when due and the City has made a formal commitment to provide the contributions. Contributions for the year ending September 30, 2009, totaling $8,869,206, were made in accordance with actuarially determined contribution requirements determined through an actuarial valuation performed at October 1, Contributions for the fiscal year ended September 30, 2009, were $6,641,793 for the employer and $1,308,763 for the employee. In addition, contributions in the amount of $918,650 were received from the State of Florida in accordance with Florida Statutes. These on-behalf payments were also recognized as revenue and police expenditures in the General Fund. 67

91 Notes to Financial Statements Note 12. Employee Retirement Plans (Continued) Trend information Trend information indicates the progress made in accumulating sufficient assets to pay benefits when due. An analysis of funding progress for the fiscal year ended September 30, 2009, for the Police Officers Pension Plan is as follows: Annual Percentage Pension of APC Net Pension Fiscal Year Ended Cost (APC) Contributed (Asset) September 30, 2009 $ 7,014, % $ (16,369,428) September 30, ,860, % (15,268,392) September 30, ,853, % (14,131,568) Firefighters Retirement Plan Plan Description The Firefighters Retirement Plan (the Fire Plan ) is a single-employer defined benefit plan, which covers all full-time certified firefighters. The Fire Plan was established by the City Commission with an effective date of December 31, The Fire Plan is also governed by certain provisions of Chapters 112 and 175, Florida Statutes. A Board of Trustee administers the Fire Plan. All costs of administering the Fire Plan are paid from plan assets. As of October 1, 2008, employee membership data related to the Fire Plan was as follows: Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not receiving them 3 Current employees: Vested 33 Nonvested 128 Total 164 The Fire Plan provides retirement benefits as well as death and disability benefits. Eligibility for normal retirement is based on age 55 with 10 years of services, age 52 with 20 years of service, age 56 with 3 years of service (12/31/02 entrants only) or any age with 25 years of service. Participants are eligible for early retirement at age 50 with at least 10 years of continuous service. The monthly retirement benefit shall be an amount determined as follows: 3.5% of the average monthly earnings times continuous service (2.25%, 3.25% or 3.5% for past service prior to December 31, 2002 depending on whether the member transferred the required additional contribution). Average monthly earnings means the average annual earnings for the highest consecutive 3 years of the 10 full years immediately preceding the actual retirement or termination date of a member, provided that a member has been employed for fewer than three years such average shall be taken only over the period of his actual employment. 68

92 Notes to Financial Statements Note 12. Employee Retirement Plans (Continued) All participants are required to contribute 8.5% of their salary to the plan. If a participant terminates employment, or dies before 10 years of credited service, accumulated employee contributions plus related investment earnings are refunded to the employee or designated beneficiary. The City Commission establishes and may amend the contribution requirements of the plan members and the City. Funding policy The following table provides information concerning funding policies: Valuation date October 1, 2008 Actuarial cost method Individual entry age Amortization method for unfunded actuarial accrued liabilities Level percent, open Amortization period 30 years Actuarial asset valuation method Five-year smoothed market value Actuarial assumptions: Assumed rate of return on investments 8% per annum* Salary increases Assumed salaries increase at 6% per year* *Includes inflation at 3% Actuarially Determined Contribution Requirements and Contributions Made The Fire Plan s funding policy provides for periodic employer contributions at actuarially determined rates that, expressed as a percentage of annual covered payroll, are sufficient to accumulate sufficient assets to pay benefits when due. Level percentages of payroll contribution rates are determined using the entry age actuarial cost method. Significant actuarial assumptions used to compute contribution requirements are the same as those used to compute the pension benefit obligation described above. Unfunded actuarial accrued liability is amortized over 30 years. Fire Plan member contributions are recognized in the period in which the contributions are due. City contributions to the plan, as calculated by the plan actuary, are recognized as revenue when due and the City has made a formal commitment to provide the contributions. Contributions for the year ending September 30, 2009, totaling $4,401,095, were made in accordance with actuarially determined contribution requirements determined through an actuarial valuation performed at October 1, Contributions for the year ending September 30, 2009, were $1,900,000 for the employer and $1,310,456 for the employee. In addition, contributions in the amount of $1,190,639 were received from the State of Florida in accordance with Florida Statutes. These on-behalf payments were also recognized as revenue and fire expenditures in the General Fund. 69

93 Notes to Financial Statements Note 12. Employee Retirement Plans (Continued) Trend Information Trend information indicates the progress made in accumulating sufficient assets to pay benefits when due. An analysis of funding progress for the fiscal year ended September 30, 2009, for the Firefighters Retirement Plan is as follows: Annual Percentage Pension of APC Net Pension Fiscal Year Ended Cost (APC) Contributed (Asset) September 30, ,889, % $ (3,114,704) September 30, ,190, % (1,811,221) September 30, ,626, % (1,471,846) Annual Pension Cost and Net Pension Obligations (Assets) The annual pension cost and net pension obligation for each Pension Plan for fiscal year ended September 30, 2009 for the General Employees, Police Officers and Firefighters is as follows: General Police Employees Officers Firefighters Annual required contribution (ARC) $ 432,309 $ 7,611,924 $ 2,984,813 Interest on net pension obligation (asset) 17,497 (1,335,984) (211,316) Adjustment to annual required contribution (41,753) 738, ,113 Annual pension cost 408,053 7,014,635 2,889,610 State contribution* - 893, ,349 Employer contribution 500,000 6,641,793 2,220,415 ** Other actuarial adjustments (2,251) 580,401 1,079,329 Increase (decrease) in net pension obligation (asset) (89,696) (1,101,036) (1,303,483) Net pension obligation (asset), beginning of year 220,958 (15,268,392) (1,811,221) Net pension obligation (asset), end of year $ 131,262 $ (16,369,428) $ (3,114,704) *The State contribution is capped for the portion allowed to be applied to the annual pension cost determined by the actuary. **The $2,220,415 figure includes $320,415 of advance City contribution from prior years. 70

94 Notes to Financial Statements Note 12. Employee Retirement Plans (Continued) Funded Status and Funding Progress The following is funded status information for each plan as of October 1, 2008, the most recent actuarial valuation date (in thousands): Actuarial Accrued UAAL as a Actuarial Liability Unfunded Percentage Valuation (AAL) - AAL Funded Covered of Covered of Assets Entry Age (UAAL) Ratio Payroll Payroll (a) (b) (b-a) (a/b) (c) ((b-a)/c) General Employees' Retirement Plan $ 6,512 $ 9,230 $ 2, % $ % Police Officers' Retirement Plan 89,779 99,861 10, % 11, % Firefighters' Retirement Plan 19,610 27,401 7, % 10, % The schedule of funding progress, presented as Required Supplementary Information (RSI) following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the AAL for benefits. Specific Investment Information Investments that individually represented 5% or more of the net assets of the General Employees Retirement Plan and the Police Officers Retirement Plan are disclosed in footnote 3. There were no investments that individually represented 5% or more of the net assets of the Firefighters Retirement Plan. 71

95 Notes to Financial Statements Note 12. Employee Retirement Plans (Continued) Employee Pension Plans That Do Not Issue Stand-Alone Financial Statements The following are the employee pension plans that do not issue stand-alone financial statements: General City Volunteer General Employees Commission Firefighters Employees Management City Manager OPEB Pension Pension Pension 401 (a) Plan 401 (a) Plan 401 (a) Plan Trust Assets: Pooled cash and cash equivalents $ 209,857 $ 16,962 $ 209,266 $ - $ - $ - $ 1,293,553 Mutual funds ,336 31,006,635 9,740, ,989 - Government securities 1,443,941 71, , Bonds 1,550, Common stock 2,601, Interest receivable 39, , Other assets ,540, , Total assets 5,845,168 89,170 1,476,425 32,546,898 9,864, ,989 1,293,553 Liabilities: Accounts payable and accrued liabilities Total liabilities Net assets held in trust for pension benefits $ 5,845,168 $ 89,170 $ 1,476,425 $ 32,546,898 $ 9,864,851 $ 686,989 $ 1,293,553 Additions: Employee contribution $ 43,282 $ - $ - $ 1,243,665 $ 260,922 $ 11,459 $ - Employer contribution 500,000 17,698-1,364, ,999 45, ,000 Total contributions 543,282 17,698-2,607, ,921 57, ,000 Investment income 221,721 2,338 27,238 99,471 7, Net appreciation (depreciation) in fair value of investments (21,013) 918 (3,976) 458,140 80,317 (10,097) 19,552 Net investment income (loss) 200,708 3,256 23, ,611 87,957 (10,097) 19,552 Total 743,990 20,954 23,262 3,165, ,878 47, ,552 Deductions: Benefit payments 739,967 10,800-1,889, , Loan defaults , ,620 4, Rollover , Investment expense and other 78,810-1,391 12, ,013 Total 818,777 10,800 13,729 2,103, ,272-1,013 Net increase (decrease) in plan net assets (74,787) 10,154 9,533 1,061, ,606 47, ,539 Net assets held in trust for pension benefits, beginning of year 5,919,955 79,016 1,466,892 31,485,093 9,511, , ,014 Net assets held in trust for pension benefits, end of year $ 5,845,168 $ 89,170 $ 1,476,425 $ 32,546,898 $ 9,864,851 $ 686,989 $ 1,293,553 72

96 Notes to Financial Statements Note 12. Employee Retirement Plans (Continued) General Employees Defined Contribution Pension Plans The City has contracted with the ICMA-RC on behalf of its general employees for two defined contribution pension plans. The City also contracts with the ICMA-RC for three defined contribution pension plans for all general employees categorized as directors and managers and a separate plan for the City Manager. All six plans are established under the provisions of Section 401(a) of the Internal Revenue Code as Money Purchase Plans and Trusts. The City Commission has the authority for establishing or amending the plan s provisions. The assets of the plans are owned by the employee; however, the City has a custodial responsibility to properly administer the plans. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. The General Employees Plan provisions require the City to contribute 7% of each participant s salary for the first seven years of service and 9% of the participant s salary thereafter. Participants are required to contribute either 6% or 8% of earnings (depending on plan selection) for the plan year. Employees are eligible to participate from the date of employment. The City s contributions for each employee (and interest allocated to the employee s account) are fully vested after five years of continuous service. City contributions for, and interest forfeited by, employees who leave employment before five years of service are refunded to the City by the trustee after a minimum holding period of three years. At September 30, 2009, there were 91 plan members in the 6% plan and 274 in the 8% plan. The City s and employees contributions for the year ended September 30, 2009, to the defined contribution plans, were $1,364,144 and $1,243,665, respectively. The management plan provisions require the City to contribute 11% of each participant s salary for the first seven years of service and 13% of the participant s salary thereafter. Participants contribute 0%, 5% or 10% of salary (depending on plan selection) for the plan year. Employees are eligible to participate in the plan from the date of employment. The City s contributions for each employee (and interest allocated to the employee s account) are fully vested at the time of the contribution. The City Manager s Plan requires the City to contribute 20% of the City Manager s salary for each plan year. In addition, the City Manager is required to contribute 5% of his salary for each plan year. The City s contribution and those of the City Manager (and interest allocated to the City Manager s account) are fully vested at the time of the contribution. The City s contributions were calculated using the covered payroll amount of approximately $3.79 million for the fiscal year ended September 30, The City s and employees contributions for the fiscal year ended September 30, 2009 were $81,642 and $0 for the Management 401(a) Plan 0%; $78,038 and $31,321 for the Management 401(a) Plan 5%; $287,319 and $229,601 for the Management 401(a) Plan 10%; and $45,835 and $11,459 for the City Manager 401(a) Plan, respectively. At September 30, 2009, there were 6 plan members in the 0% plan, 6 plan members in the 5% plan and 20 members in the 10% plan. 73

97 Notes to Financial Statements Note 12. Employee Retirement Plans (Continued) Volunteer Firefighters Pension Plan The Volunteer Firefighters Pension Plan is a single-employer defined contribution plan, which covers all volunteer firefighters. The Volunteer Firefighters Pension Plan was established by the City Commission on September 4, 1990, retroactive to January 1, This plan was closed in 2004 and no longer receives contributions. In June 1994, the Plan was amended to reduce the City s contribution to the plan administrator from $967 to $648 with $319 being paid directly to the firefighter as a supplemental contribution for each participant for each year of credited service after vesting. A participant earns a year of credited service by completing 576 shift hours and 144 training hours per calendar year. Benefits are fully vested after 5 years of credited service. Note 13. Other Post-Employment Benefits Pursuant to Section , Florida Statutes, the City is required to permit participation in the health insurance program by retirees and their eligible dependents at a cost to the retiree that is no greater than the cost at which coverage is available for active employees. The City does not provide retirees who participate in the PPO with any subsidy for this benefit. The City covers 50% of the cost for those retirees who participate in the HMO up to age 65. The City elected to establish an irrevocable OPEB trust and began funding the obligation during fiscal year 2008 leaving approximately $1,535,000 as the unfunded obligation and an incremental annual cost of $418,000. Plan description: On June 17, 2008, the City established the Other Post-Employment Benefits Trust, a singleemployer defined benefit healthcare plan administered by the City. The Plan provides medical and dental insurance benefits to eligible retirees and their spouses and families. The City Commission is authorized to establish and amend benefit levels, subject to the minimum requirements set forth by Florida Statutes, and to approve the actuarial assumptions used in the determination of contribution levels. The Plan does not issue a separate financial statement or required supplementary information. As of October 1, 2008, employee membership data related to the Plan was as follows: Current retirees: Under age Over age Dependents 66 Total current retirees 152 Active employees: Active employees fully eligible for benefits 101 Active employees not yet fully eligible for benefits 673 Total active employees 774 Total number of participants

98 Notes to Financial Statements Note 13. Other Post-Employment Benefits (Continued) Actuarial methods: Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. Although the valuation results are based on values the actuarial consultant believes are reasonable assumptions, the valuation result is only an estimate of what future costs may actually be and reflect a long-term perspective. Deviations in any of several factors, such as future interest rate discounts, medical cost inflation, Medicare coverage risk, and changes in marital status could result in actual costs being greater or less than estimated. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. Funding policy: The City Commission is authorized to establish benefit levels and to approve the actuarial assumptions used in the determination of contribution levels. The City Commission establishes the contribution requirements of plan members and the City. These contributions are neither mandated nor guaranteed. The retiree pays the full cost of the premium each month for themselves, spouses and other dependents, who are also eligible for coverage. The City does not provide retirees who participate in the PPO with any subsidy for this benefit. The City covers 50% of the cost for those retirees who participate in the HMO up to age 65. The following table provides information concerning funding policies: Valuation date October 1, 2008 Actuarial cost method Projected unit credit Amortization method for unfunded actuarial accrued liabilities Level dollar payment, open Amortization period 15 years Actuarial asset valuation method Market value Actuarial assumptions: Assumed rate of return on investments 7% per annum* Healthcare cost trend (rate(s): Medical Dental/Vision Select rates 8% for 2008/09 graded Not applicable To 5.5% for 2013/14 Ultimate rate 5% per annum 3.5% per annum *Includes inflation at 3.5% per annum 75

99 Notes to Financial Statements Note 13. Other Post-Employment Benefits (Continued) Actuarially Determined Contribution Requirements and Contributions Made On August 29, 2008, the City began contributing to the Florida Municipal Pension Trust Fund ( FMPTF ), a pooled trust fund established to provide Retirement and Other Post Employment Benefit plan administration. The City will be required to contribute an actuarially determined amount necessary to pay the annual required contributions. During fiscal year 2009, the City contributed $675,000 to the FMPTF. There were no retiree contributions to the plan for fiscal year The following is the schedule of employer contributions: Annual Annual Fiscal Required % OPEB % Year Ended Contribution Contributed Cost Contributed September 30, 2008 $ 242, % $ 242, % September 30, , % 418, % Annual OPEB Cost and Net OPEB Asset: The City s annual other post-employment benefit ( OPEB ) cost for the fiscal year was $418,000, an amount actuarially determined in accordance with the parameters of GASB Statement 45. The City s annual OPEB cost, percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation (asset) for the fiscal year ended September 30, 2009 were as follows: Annual required contribution $ 411,000 Interest on net OPEB asset (15,000) Adjustment to annual required contribution 22,000 Annual OPEB cost 418,000 Contributions made (675,000) Other actuarial adjustments 41,000 Change in net OPEB obligation (asset) (216,000) Net OPEB obligation (asset), beginning of year (362,000) Net OPEB obligation (asset), end of year $ (578,000) The actuarial valuation for the Plan was done as of October 1, Thereafter, valuations will be done bi-annually. 76

100 Notes to Financial Statements Note 13. Other Post-Employment Benefits (Continued) Funded Status: The following is funded status information as of October 1, 2008, the most recent actuarial valuation date (in thousands): Actuarial UAAL as a Actuarial Accrued Unfunded Percentage Valuation Liability AAL Funded Covered of Covered of Assets* (AAL) (UAAL) Ratio Payroll Payroll Actuarial Valuation Date (a) (b) (b-a) (a/b) (c) ((b-a)/c) October 1, 2008 $ 1,279 $ 2,814 $ 1, % $ 45, % *The actuarial value of assets includes an employer contributions of $675,000 deposited on October 1, Note 14. Pronouncements Issued But Not Yet Adopted GASB Statement No. 51, Accounting and Financial Reporting for Intangible Assets, was issued in June This Statement establishes accounting and financial reporting requirements for intangible assets to reduce these inconsistencies, thereby enhancing the comparability of the accounting and financial reporting of such assets among state and local governments. The provisions of this Statement will be effective for the City beginning with its year ending September 30, GASB Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, was issued in June This Statement addresses the recognition, measurement, and disclosure of information regarding derivative instruments entered into by state and local governments. The provisions of this Statement will be effective for the City beginning with its year ending September 30, GASB Statement 54, Fund Balance Reporting and Governmental Fund Type Definitions, was issued in March The objective of this Statement is to enhance the usefulness of fund balance information by providing clearer fund balance classifications that can be more consistently applied and by clarifying the existing governmental fund type definitions. This Statement establishes fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. The provisions of this Statement will be effective for the City beginning with its year ending September 30, GASB Statement 57, OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans, was issued in December The objective of this Statement is to address issues related to the use of the alternative measurement method and the frequency and timing of measurements by employers that participate in agent multipleemployer other postemployment benefit (OPEB) plans (that is, agent employers). This Statement amends Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, to permit certain OPEB plans to use an alternative measurement method. Consistent with this change to the employerreporting requirements, this Statement also amends Statement No. 43, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, which requires that a defined benefit OPEB plan obtain an actuarial valuation. In addition, this Statement clarifies that when actuarially determined OPEB measures are reported by an agent multiple-employer OPEB plan and its participating employers, those measures should be determined as of a common date and at a minimum frequency to satisfy the agent multiple-employer OPEB plan s financial reporting requirements. The provisions of this Statement will be effective for the City beginning with its year ending September 30,

101 Notes to Financial Statements Note 14. Pronouncements Issued But Not Yet Adopted (Continued) GASB Statement 58, Accounting and Financial Reporting for Chapter 9 Bankruptcies, was issued in December The objective of this Statement is to provide accounting and financial reporting guidance for governments that have petitioned for protection from creditors by filing for bankruptcy under Chapter 9 of the United States Bankruptcy Code. It requires governments to remeasure liabilities that are adjusted in bankruptcy when the bankruptcy court confirms (that is, approves) a new payment plan. The provisions of this Statement will be effective for the City beginning with its year ending September 30, The City s management has not yet determined the effect these statements will have on the City s financial statements. 78

102 Required Supplementary Information General Fund Schedule of Revenue, Expenditures and Changes in Fund Balances Budget and Actual (Budgetary Basis) (Unaudited) Fiscal Year Ended September 30, 2009 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) Revenue: Taxes: Ad valorem $ 31,393,810 $ 31,393,810 $ 31,947,040 $ 553,230 Franchise fees 11,306,081 11,306,081 10,599,427 (706,654) Utility 8,808,305 8,808,305 8,938, ,777 Intergovernmental 20,057,054 20,057,054 19,719,791 (337,263) Licenses and permits 3,634,400 3,634,400 3,587,086 (47,314) Charges for services 9,957,392 9,957,392 10,085, ,520 Fines and forfeitures 1,504,382 1,504,382 1,209,998 (294,384) Interest and other 3,926,845 3,926,845 3,627,088 (299,757) Total revenue 90,588,269 90,588,269 89,714,424 (873,845) Expenditures: Current: General government 14,109,862 14,093,815 13,068,807 1,025,008 Public safety: Police 39,386,343 39,386,343 39,137, ,252 Fire 8,007,565 8,007,565 7,994,631 12,934 Parks and recreation 12,720,435 12,720,435 12,165, ,842 Public works 4,547,851 4,547,851 4,106, ,818 Development services 6,032,907 6,048,954 5,518, ,679 Educational and cultural 555, , ,958 43,085 Capital outlay 955, , , ,770 Total expenditures 86,315,308 86,315,308 82,798,920 3,516,388 Excess of revenue over expenditures 4,272,961 4,272,961 6,915,504 2,642,543 Other financing sources (uses): Transfers in 287, , , ,046 Transfers out (4,560,301) (4,560,301) (9,066,187) (4,505,886) Total other financing sources (uses) (4,272,961) (4,272,961) (8,461,801) (4,188,840) Net change in fund balances $ - $ - (1,546,297) $ (1,546,297) Fund balance, beginning of year 31,858,559 Fund balance, end of year $ 30,312,262 See Notes to Required Supplementary Information. 79

103 Required Supplementary Information Fire Special Revenue Fund Schedule of Revenue, Expenditures and Changes in Fund Balances Budget and Actual (Budgetary Basis) (Unaudited) Fiscal Year Ended September 30, 2009 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenue: Intergovernmental $ 25,133 $ 25,133 $ 41,896 $ 16,763 Non-ad valorem special assessment 7,169,248 7,169,248 7,499, ,981 Charges for services 6,375,185 6,375,185 6,125,734 (249,451) Interest and other 143, , ,203 20,383 Total revenue 13,713,386 13,713,386 13,831, ,676 Expenditures: Current: Fire 14,280,198 14,266,998 13,926, ,363 Capital outlay 156, ,570 58, ,460 Total expenditures 14,436,568 14,436,568 13,984, ,823 Excess (deficiency) of revenue over (under) expenditures (723,182) (723,182) (153,683) 569,499 Other financing sources (uses): Transfers in 956, , ,042 - Transfers out (232,860) (232,860) (305,060) (72,200) Total other financing sources (uses) 723, , ,982 (72,200) Net change in fund balance $ - $ - 497,299 $ 497,299 Fund balance, beginning of year 1,732,527 Fund balance, end of year $ 2,229,826 See Notes to Required Supplementary Information. 80

104 Required Supplementary Information Coral Springs Charter School Special Revenue Fund Schedule of Revenue, Expenditures and Changes in Fund Balances Budget and Actual (Budgetary Basis) (Unaudited) Fiscal Year Ended September 30, 2009 Final Budget Budgeted Amounts Positive Original Final Actual (Negative) Revenue: Intergovernmental $ 11,489,178 $ 11,489,178 $ 11,419,530 $ (69,648) Interest and other , ,141 Total revenue 11,489,178 11,489,178 11,664, ,493 Expenditures: Educational programs 11,489,178 11,489,178 11,449,872 39,306 Total expenditures 11,489,178 11,489,178 11,449,872 39,306 Excess of revenue over expenditures , ,799 Other financing sources (uses): Transfers out - - (102,866) (102,866) Total other financing sources (uses) - - (102,866) (102,866) Net change in fund balance $ - $ - 111,933 $ 111,933 Fund balance, beginning of year 5,591,257 Fund balance, end of year $ 5,703,190 See Notes to Required Supplementary Information. 81

105 Required Supplementary Information Schedule of Funding Progress September 30, 2009 (Dollar amounts in thousands) (Unaudited) General Employees Retirement Plan Actuarial UAAL as a Actuarial Accrued Unfunded Percentage Valuation Liability AAL Funded Covered of Covered of Assets (AAL) (UAAL) Ratio Payroll Payroll Actuarial Valuation Date (a) (b) (b-a) (a/b) (c) ((b-a)/c) October 1, 2003 $ 6,529 $ 7,619 $ 1, % $ % October 1, ,469 7,715 1, % % October 1, ,591 7,935 1, % % October 1, ,529 8,001 1, % % October 1, ,688 9,582 2, % % October 1, ,512 9,230 2, % % Police Officers Retirement Plan Actuarial UAAL as a Actuarial Accrued Unfunded Percentage Valuation Liability AAL Funded Covered of Covered of Assets (AAL) (UAAL) Ratio Payroll Payroll Actuarial Valuation Date (a) (b) (b-a) (a/b) (c) ((b-a)/c) October 1, 2006 $ 75,824 $ 94,271 $ 18, % $ 10, % October 1, , ,237 18, % 11, % October 1, ,779 99,861 10, % 11, % Firefighters Retirement Plan Actuarial UAAL as a Actuarial Accrued Unfunded Percentage Valuation Liability AAL Funded Covered of Covered of Assets* (AAL) (UAAL) Ratio Payroll Payroll Actuarial Valuation Date (a) (b) (b-a) (a/b) (c) ((b-a)/c) October 1, 2006 $ 10,688 $ 16,109 $ 5, % $ 7, % October 1, ,110 20,737 5, % 9, % October 1, ,610 27,401 7, % 10, % Other Post-Employment Benefits Actuarial UAAL as a Actuarial Accrued Unfunded Percentage Valuation Liability AAL Funded Covered of Covered of Assets* (AAL) (UAAL) Ratio Payroll Payroll Actuarial Valuation Date (a) (b) (b-a) (a/b) (c) ((b-a)/c) October 1, 2008 $ 1,279 $ 2,814 $ 1, % $ 45, % *The actuarial value of assets includes an employer contributions of $675,000 deposited on October 1, A schedule of funding progress presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing relative to the AAL for benefits. The OPEB trust was established in 2008 therefore multi-year trend information is not available. See Notes to Required Supplementary Information. 82

106 Required Supplementary Information Schedule of Employer Contributions September 30, 2009 (Unaudited) Employer Contributions Annual General Employees Retirement Plan Required Percentage Year Ended Contribution Contributed September 30, 2008 $ 453, % September 30, , % September 30, ,194 52% September 30, ,703 42% September 30, ,109 41% September 30, ,782 56% Employer Contributions Annual Police Officers Retirement Plan Required Percentage Year Ended Contribution Contributed September 30, 2008 $ 5,413, % September 30, ,481, % September 30, ,326, % Employer Contributions Annual Firefighters Retirement Plan Required Percentage Year Ended Contribution Contributed September 30, 2008 $ 2,244, % September 30, ,675, % September 30, ,674, % Employer Contributions Annual Other Post-Employment Benefits Required Percentage Year Ended Contribution Contributed September 30, 2008 $ 242, % See Notes to Required Supplementary Information. 83

107 Notes to Required Supplementary Information September 30, 2009 (Unaudited) Budgetary Procedures and Budgetary Accounting The City adheres to the following procedures in establishing the budgetary data reflected in the accompanying financial statements: Prior to September 30, the City Manager submits to the City Commission proposed operating budgets for the General Fund, Debt Service Fund, Fire Special Revenue Fund, Charter School Special Revenue Fund, Public Art Special Revenue Fund, Conference Center Special Revenue Fund, Enterprise Funds, and Internal Service Funds for the fiscal year commencing October 1. The operating budget includes proposed expenditures and the means of financing them. As part of the City s annual budgeting process, expenditures and funding sources for capital projects are identified through the Capital Improvement Program Budget. Public hearings are conducted at City Hall to obtain taxpayer comments. Prior to September 30, the budget is legally enacted through passage of a resolution. Each department director is authorized to transfer budget amounts within individual departments. Revisions that alter the total expenditures of any department within a fund must be approved by the City Manager. The City Commission must approve revisions that alter the total expenditures of any fund. Actual expenditures and operating transfers out may not exceed budget appropriations at the individual fund level. Legal level of control is maintained at the fund level. If during the course of the fiscal year it becomes evident that a particular fund is unable to provide the required level of services to the community due to unexpected higher costs of providing services or a shortfall of revenue, the budget may be amended. The Director of Financial Services submits to the City Commission a request to amend the budget. The request contains explanations written by the director(s) of the department(s) making the request. The request includes a proposal for financing if additional expenditures are requested. The accompanying budgetary data represents the original and the final amended budgets as approved by the City Commission. The difference between the two columns represents authorized budget transfers within the fiscal year. The General Fund budget is prepared on the modified accrual basis. However, certain General Fund operations are not budgeted and are excluded from the budget to actual presentation. The operations that are not budgeted are the State Contributions for the Police and Fire Pension Funds and the Computer Replacement Reserve. 84

108 Notes to Required Supplementary Information September 30, 2009 (Unaudited) The following schedule reconciles the expenditure amounts on the schedule of revenue, expenditures, and changes in fund balances budget and actual (budgetary basis) to amounts on the statement of revenue, expenditures, and changes in fund balances: Revenues Expenditures Revenue and expenditures budgetary basis $ 89,714,424 $ 82,798,920 State contribution for Police and Fire Pension Funds 2,109,289 - Expenses related to the State contribution for the Police and Fire Pension Funds - 2,109,289 Computer replacement expenditures for the year ended September 30, ,898 Revenue and expenditures GAAP basis $ 91,823,713 $ 85,029,107 The information presented in the required supplementary schedules was determined as part of the actuarial valuations. Information as of the latest actuarial valuations are as follows: General Employees Police Officers Firefighters Retirement Plan Retirement Plan Retirement Plan Actuarial valuation October 1, 2008 October 1, 2008 October 1, 2008 Cost method Entry age normal Frozen entry age Individual entry age Asset valuation method Market value Five-year smoothed Five-year smoothed market value market value Amortization method Level payment, closed Level percent, open Level percent, open Amortization period 15 years 30 years 30 years Actuarial assumptions: Assumed rate of return on investments 8% per annum 8.75% per annum* 8% per annum* Salary increases 5% per year 6% per year* 6% per year* * Includes inflation at 3% * Includes inflation at 3% Cost-of-living adjustments 2.0% 2.5% n/a 85

109

110 Nonmajor Special Revenue Funds Special Revenue Funds are used to account for specific revenue that are restricted to expenditures for particular purposes. Law Enforcement Contraband Forfeiture Fund to account for law enforcement related projects funded by the proceeds from forfeited confiscated property. Tree Trust Fund to account for fines received in accordance with the City s tree preservation ordinance. Road Impact Fund to account for impact fees designated for various City roads. Commercial Vehicle Fund to account for fines collected for violations of commercial vehicle weight restrictions pursuant to Chapter 316 of the Florida Statutes. Environmental Mitigation Fund to account for funds received for the maintenance of various environmental sites throughout the City. Public Arts Fund to account for the operations related to the City s public arts program. Library Reserve Fund to account for the maintenance of the grounds surrounding the Northwest Regional Library. Conference Center Fund to account for the maintenance of the Conference Center located in the Marriott Hotel. 86

111

112 Nonmajor Capital Projects Funds Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds. Variable Rate Debt Fund to account for the acquisition and construction of capital facilities funded by variable rate debt. Charter School Construction Fund to account for the acquisition and construction of the Coral Springs Charter School funded by variable rate debt, Student Infrastructure Thrift ( SIT ) and Charter School Capital Outlay Funds. Capital Revenue Bonds Fund to account for the acquisition or construction of major capital facilities financed by the issuance of capital revenue bonds Series 2002 B. 87

113 Nonmajor Special Revenue Funds Combining Balance Sheet September 30, 2009 Law Enforcement Contraband Tree Road Commercial Environmental Forfeiture Trust Impact Vehicle Mitigation Assets Fund Fund Fund Fund Fund Cash and cash equivalents $ 1,181,717 $ 209,965 $ 42,826 $ 54,827 $ 13,330 Investments 4,477, , , ,039 56,419 Interest receivable 26,114 5,183 1,057 1, Total assets $ 5,685,119 $ 1,103,762 $ 225,136 $ 288,219 $ 70,078 Liabilities Accounts payable and accrued liabilities $ 2,010 $ 2,200 $ - $ - $ - Deposits and deferred revenue 123, Total liabilities 125,816 2, Fund Balances Unreserved: Designated for future maintenance Undesignated 5,559,303 1,101, , ,219 70,078 Total fund balances 5,559,303 1,101, , ,219 70,078 Total liabilities and fund balances $ 5,685,119 $ 1,103,762 $ 225,136 $ 288,219 $ 70,078 88

114 Total Nonmajor Public Library Conference Special Arts Reserve Center Revenue Fund Fund Fund Funds $ 127,905 $ 482,064 $ 194,890 $ 2,307, ,321 2,040, ,817 9,241,943 3,157 11,899 4,810 53,902 $ 672,383 $ 2,534,155 $ 1,024,517 $ 11,603,369 $ - $ 150 $ - $ 4, , , , ,176 38, , ,673 2,534,005 1,024,517 11,246, ,373 2,534,005 1,024,517 11,285,193 $ 672,383 $ 2,534,155 $ 1,024,517 $ 11,603,369 89

115

116 Nonmajor Capital Projects Funds Combining Balance Sheet September 30, 2009 Total Variable Charter Capital Nonmajor Total Rate School Revenue Capital Nonmajor Debt Construction Bonds Projects Governmental Assets Fund Fund Fund Funds Funds Cash and cash equivalents $ 108,778 $ - $ - $ 108,778 $ 2,416,302 Investments 460, ,373 9,702,316 Interest receivable 2, ,686 56,588 Total assets $ 571,837 $ - $ - $ 571,837 $ 12,175,206 Liabilities Accounts payable and accrued liabilities $ - $ - $ - $ - $ 4,360 Deposits and deferred revenue ,816 Total liabilities ,176 Fund Balances (Deficit) Unreserved: Designated for future maintenance ,700 Designated for subsequent years expenditures 571, , ,837 Undesignated ,246,493 Total fund balances (deficit) 571, ,837 11,857,030 Total liabilities and fund balances (deficit) $ 571,837 $ - $ - $ 571,837 $ 12,175,206 90

117 Nonmajor Special Revenue Funds Combining Statement of Revenue, Expenditures and Changes in Fund Balances Fiscal Year Ended September 30, 2009 Law Enforcement Contraband Tree Road Commercial Environmental Forfeiture Trust Impact Vehicle Mitigation Fund Fund Fund Fund Fund Revenue: Licenses and permits $ - $ 2,953 $ - $ - $ - Charges for services Fines and forfeitures 464,342 5,690-1,170 - Interest and other 209,788 42,434 7,773 9,935 2,421 Total revenue 674,130 51,077 7,773 11,105 2,421 Expenditures: Current: Public safety: Police 1,428, Parks and recreation - 216, Educational and cultural programs Capital outlay Total expenditures 1,428, , Excess (deficiency) of revenue over (under) expenditures (754,780) (165,252) 7,773 11,105 2,421 Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances (754,780) (165,252) 7,773 11,105 2,421 Fund balances (deficit) 6,314,083 1,266, , ,114 67,657 Fund balances, end of year $ 5,559,303 $ 1,101,562 $ 225,136 $ 288,219 $ 70,078 91

118 Total Nonmajor Public Library Conference Special Arts Reserve Center Revenue Fund Fund Fund Funds $ - $ - $ - $ 2,953 27, , , ,202 23,828 87,623 32, ,549 50,862 87, ,749 1,083, ,428, ,329-24,290-24, , , ,107 24,290-1,772,636 (52,245) 63, ,749 (688,896) (52,245) 63, ,749 (688,896) 534,618 2,470, ,768 11,974,089 $ 482,373 $ 2,534,005 $ 1,024,517 $ 11,285,193 92

119

120 Nonmajor Capital Projects Funds Combining Statement of Revenue, Expenditures and Changes in Fund Balances Fiscal Year Ended September 30, 2009 Total Charter Capital Nonmajor Total Variable School Revenue Capital Nonmajor Rate Construction Bonds Projects Governmental Debt Fund Fund #2 Funds Funds Revenue: Licenses and permits $ - $ - $ - $ - $ 2,953 Charges for services ,036 Fines and forfeitures ,202 Interest and other 19,750 1,541 8,862 30, ,702 Total revenue 19,750 1,541 8,862 30,153 1,113,893 Expenditures: Public safety: Police ,428,910 Parks and recreation ,329 Educational and cultural programs ,290 Capital outlay - - 4,271 4, ,378 Total expenditures - - 4,271 4,271 1,776,907 Excess (deficiency) of revenue over (under) expenditures 19,750 1,541 4,591 25,882 (663,014) Other financing sources (uses): Transfers in - 102, , ,866 Transfers out - (86,169) (253,928) (340,097) (340,097) Total other financing sources (uses) - 16,697 (253,928) (237,231) (237,231) Net change in fund balance 19,750 18,238 (249,337) (211,349) (900,245) Fund balances (deficit) 552,087 (18,238) 249, ,186 12,757,275 Fund balances (deficit), end of year $ 571,837 $ - $ - $ 571,837 $ 11,857,030 93

121 Debt Service Fund Major Schedule of Revenue, Expenditures and Changes in Fund Balances Budget and Actual Fiscal Year Ended September 30, 2009 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenue: Ad valorem taxes $ 1,644,745 $ 1,644,745 $ 1,671,274 $ 26,529 Interest and other 1,939 1, , ,668 Total revenue 1,646,684 1,646,684 1,996, ,197 Expenditures: Current: General government - - 2,650 (2,650) Debt service: Principal 3,400,000 3,400,000 3,888,217 (488,217) Interest and other 2,088,803 2,088,803 2,066,878 21,925 Total expenditures 5,488,803 5,488,803 5,957,745 (468,942) Excess (deficiency) of revenue over (under) expenditures (3,842,119) (3,842,119) (3,960,864) (118,745) Other financing sources (uses): Issuance of debt , ,217 Transfers in 3,842,119 3,842,119 3,979, ,643 Transfers out - - (518,217) (518,217) Total other financing sources (uses) 3,842,119 3,842,119 3,979, ,643 Net change in fund balances $ - $ - 18,898 $ 18,898 Fund balance, beginning of year 4,352,111 Fund balance, end of year $ 4,371,009 94

122 Public Art Special Revenue Fund Nonmajor Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual Fiscal Year Ended September 30, 2009 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) Revenue: Charges for services $ 153,000 $ 153,000 $ 27,034 $ (125,966) Interest and other ,828 23,828 Total revenue 153, ,000 50,862 (102,138) Expenditures: Educational & cultural 10,000 10,000-10,000 Capital outlay 143, , ,107 39,893 Total expenditures 153, , ,107 49,893 Deficiency of revenue under expenditures $ - $ - (52,245) $ (52,245) Fund balance, beginning of year 534,618 Fund balance, end of year $ 482,373 95

123 Conference Center Special Revenue Fund Nonmajor Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual Fiscal Year Ended September 30, 2009 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) Revenue: Conference Center $ 150,000 $ 150,000 $ 166,002 $ 16,002 Interest and other ,747 32,747 Total revenue 150, , ,749 48,749 Expenditures: Capital outlay 150, , ,000 Total expenditures 150, , ,000 Excess of revenue over expenditures , ,749 Net change in fund balance $ - $ - 198,749 $ 198,749 Fund balance, beginning of year 825,768 Fund balance, end of year $ 1,024,517 96

124 Water and Sewer Fund Schedule of Revenue and Expenses (Budgetary Basis) Compared to Budget Fiscal Year Ended September 30, 2009 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Operating revenue: Water sales $ 7,555,640 $ 7,555,640 $ 7,461,527 $ (94,113) Sewer service charge 8,621,160 8,621,160 8,655,046 33,886 Charges for services 90,000 90,000 95,694 5,694 Total operating revenue 16,266,800 16,266,800 16,212,267 (54,533) Operating expenses: Wastewater treatment 5,000,000 5,000,000 2,249,572 2,750,428 Water treatment 2,876,567 2,876,567 2,458, ,476 Water distribution 874, , , ,172 Wastewater collection 1,197,421 1,197,421 1,080, ,991 Administration 2,698,478 2,698,478 2,389, ,794 Insurance expense 660, , ,891 - Renewal and replacement 260, , ,000 - Capital replacement 254, , ,744 29,656 Total operating expenses 13,822,444 13,822,444 10,081,927 3,740,517 Operating income 2,444,356 2,444,356 6,130,340 3,685,984 Nonoperating revenue (expenses): Appropriated fund balance 254, ,400 - (254,400) Interest income 125, ,000 46,952 (78,048) Meter sales 50,000 50,000 12,135 (37,865) Debt service (2,858,756) (2,858,756) (554,110) 2,304,646 Trustee fees and other (15,000) (15,000) (916) 14,084 Total nonoperating revenue (expenses) (2,444,356) (2,444,356) (495,939) 1,948,417 Excess of revenue over expenses $ - $ - $ 5,634,401 $ 5,634,401 The above schedule reflects certain adjustments to actual revenue and expenses to present data on a basis comparable to adopted budget. 97

125 Coral Springs Center for the Arts Fund Schedule of Revenue and Expenses (Budgetary Basis) Compared to Budget Fiscal Year Ended September 30, 2009 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Operating revenue: Coral Springs Center for the Arts $ 82,000 $ 82,000 $ - $ (82,000) Operating expenses: Operating and program costs 445, , ,663 (3,663) Nondepartmental 32,000 32,000 32,000 - Total operating expenses 477, , ,663 (3,663) Operating loss (395,000) (395,000) (480,663) (85,663) Nonoperating revenue: Transfers in 395, , ,000 - Excess of revenue over expenses $ - $ - $ (85,663) $ (85,663) The above schedule reflects certain adjustments to actual revenue and expenses to present data on a basis comparable to adopted budget. 98

126 Internal Service Funds Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and other government units, on a cost reimbursement basis. Self-Insurance Fund to account for the costs of insuring the City in the areas of general liability, auto liability, property, life and medical benefits, and workers compensation. The City is primarily selfinsured in these areas. Other funds are billed to cover actual premium costs, claims, and to maintain an adequate balance in fund equity. Equipment Services Fund to account for the costs of operating a maintenance facility for City vehicles. Other departments are billed to cover operating costs, including insurance and depreciation on the vehicles, and to provide for future replacement of the vehicles. New vehicles are initially purchased by the user departments and contributed to the Equipment Services Fund. 99

127 Internal Service Funds Combining Statement of Net Assets September 30, 2009 Self- Equipment Assets Insurance Fund Services Fund Total Current assets: Cash and cash equivalents $ 1,411,085 $ 2,062,512 $ 3,473,597 Investments 5,679,197 8,728,957 14,408,154 Interest receivable 33,125 50,913 84,038 Accounts receivable, net 1,831-1,831 Total current assets 7,125,238 10,842,382 17,967,620 Noncurrent assets: Capital assets, net - 8,771,207 8,771,207 Total assets 7,125,238 19,613,589 26,738,827 Liabilities and Net Assets Liabilities: Accounts payable and accrued liabilities 33, , ,900 Compensated absences 20,030 60,643 80,673 Accrued liability for estimated claims 3,730,318-3,730,318 Total liabilities 3,784, ,861 3,988,891 Net assets: Invested in capital assets, net of related debt - 8,771,207 8,771,207 Unrestricted 3,341,208 10,637,521 13,978,729 Total net assets $ 3,341,208 $ 19,408,728 $ 22,749,

128 Internal Service Funds Combining Statement of Revenue, Expenses and Changes in Fund Net Assets Fiscal Year Ended September 30, 2009 Self- Equipment Insurance Fund Services Fund Total Operating revenue: Charges for services $ 11,654,120 $ 5,075,751 $ 16,729,871 Other revenue 1,252,527 29,089 1,281,616 Total operating revenue 12,906,647 5,104,840 18,011,487 Operating expenses: Operating and program costs - 1,067,685 1,067,685 Administration 1,142,607 1,501,832 2,644,439 Depreciation - 2,204,685 2,204,685 Insurance claims, net of recoveries 9,293,769-9,293,769 Insurance premiums 2,391,141-2,391,141 Total operating expenses 12,827,517 4,774,202 17,601,719 Operating income 79, , ,768 Nonoperating revenue: Investment income 229, , ,256 Gain on disposal of capital assets - 101, ,832 Total nonoperating revenue (expenses), net 229, , ,088 Income before contributions and transfers 308, ,273 1,119,856 Capital contributions - 422, ,863 Transfers in - 8,772 8,772 Transfers out - - Change in net assets 308,583 1,242,908 1,551,491 Net assets, beginning of year 3,032,625 18,165,820 21,198,445 Net assets, end of year $ 3,341,208 $ 19,408,728 $ 22,749,

129 Internal Service Funds Combining Statement of Cash Flows Fiscal Year Ended September 30, 2009 Self- Equipment Insurance Fund Services Fund Total Cash Flows From Operating Activities Receipts from other funds $ 11,654,120 $ 5,104,840 $ 16,758,960 Receipts from employees and other sources 934, ,367 Payments to suppliers for goods and services (3,312,537) (1,574,910) (4,887,447) Payments for claims (8,860,603) - (8,860,603) Payments to employees for services (263,423) (1,071,083) (1,334,506) Net cash provided by (used in) operating activities 151,924 2,458,847 2,610,771 Cash Flows From Noncapital Financing Activities Transfer from other funds - 8,772 8,772 Net cash provided by noncapital financing activities - 8,772 8,772 Cash Flows From Capital and Related Financing Activities Acquisition and construction of capital assets - (2,099,263) (2,099,263) Proceeds from sale of capital assets - 105, ,801 Net cash used in capital and related financing activities - (1,993,462) (1,993,462) Cash Flows From Investing Activities Interest received 296, , ,069 Proceeds from sale of investments 4,405,205 6,781,995 11,187,200 Purchase of investments (5,930,408) (9,145,689) (15,076,097) Net cash used in investing activities (1,228,677) (1,875,151) (3,103,828) Net decrease in cash and cash equivalents (1,076,753) (1,400,994) (2,477,747) Cash and cash equivalents, beginning of year 2,487,838 3,463,506 5,951,344 Cash and cash equivalents, end of year $ 1,411,085 $ 2,062,512 $ 3,473,597 (Continued) 102

130 Internal Service Funds Combining Statement of Cash Flows (Continued) Fiscal Year Ended September 30, 2009 Self- Equipment Insurance Fund Services Fund Total Reconciliation of operating income to net cash provided by operating activities: Operating income (loss) $ 79,130 $ 330,638 $ 409,768 Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation - 2,204,685 2,204,685 Changes in assets and liabilities: Increase (decrease) in accounts receivable 4,688-4,688 Decrease in accounts payable (45,570) (78,781) (124,351) Increase in accrued liability for estimated claims 110, ,318 Increase in compensated absences 3,358 2,305 5,663 Total adjustments 72,794 2,128,209 2,201,003 Net cash provided by (used in) operating activities $ 151,924 $ 2,458,847 $ 2,610,771 Noncash investing and capital financing activities: Decrease in fair value of investments that are not cash equivalents: Unrealized losses on investments $ (65,475) $ (107,387) $ (172,862) Purchases of equipment from the following funds totaling $422,863 were received by the Equipment Services Fund: Nonmajor funds - 422, ,863 $ - $ 422,863 $ 422,

131 Self-Insurance Fund Schedule of Revenue and Expenses (Budgetary Basis) Compared to Budget Fiscal Year Ended September 30, 2009 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Operating revenue: Charges for services: General Fund $ 8,926,545 $ 8,926,545 $ 8,926,545 $ - Water and Sewer Fund 1,089,864 1,089,864 1,089,864 - Equipment Services Fund 188, , ,128 - Self-Insurance Fund 15,830 15,830 15,830 - Health Fund 1,808 1,808 1,808 - Fire Fund 1,431,945 1,431,945 1,431,945 - Other revenue 1,019,600 1,019,600 1,252, ,927 Interest 185, , ,453 44,453 Appropriated fund balance 110, ,000 - (110,000) Total operating revenue 12,968,720 12,968,720 13,136, ,380 Operating expenses: Life, health and dental 9,852,242 9,852,242 9,405, ,205 Property 1,927,378 1,927,378 1,784, ,440 Casualty 179, , ,243 13,757 Workers compensation 1,010,100 1,010,100 1,472,299 (462,199) Total operating expenses 12,968,720 12,968,720 12,827, ,203 Excess of revenue over (under) expenses $ - $ - $ 308,583 $ 308,583 The above schedule reflects certain adjustments to actual revenue and expense to present data on a basis comparable to the adopted budget. 104

132 Equipment Services Fund Schedule of Revenue and Expenses (Budgetary Basis) Compared to Budget Fiscal Year Ended September 30, 2009 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Operating revenue: Charges for services $ 5,926,958 $ 5,926,958 $ 5,075,751 $ (851,207) Interest income 200, , , ,803 Other revenue 97,000 97,000 29,089 (67,911) Appropriated fund balance 2,257,730 2,257,730 - (2,257,730) Total operating revenue 8,481,688 8,481,688 5,483,643 (2,998,045) Operating expenses: Personal services 1,172,098 1,172,098 1,023, ,802 Current expenses 2,519,733 2,519,733 1,502,698 1,017,035 Depreciation expense 2,522,127 2,522,127 2,204, ,442 Equipment purchases 2,267,730 2,267,730 2,134, ,715 Total operating expenses 8,481,688 8,481,688 6,864,694 1,616,994 Excess of revenue over expenses $ - $ - $ (1,381,051) $ (1,381,051) The above schedule reflects certain adjustments to actual revenue and expenses to present data on a basis comparable to adopted budget. 105

133

134 Fiduciary Funds Fiduciary Funds are used to account for assets held by the City in a trustee capacity or as an agent on behalf of others. General Employees, Police Officers, and Firefighters Pension Trust Funds to account for the accumulation of resources to be used for retirement benefit payments to the City s employees. Resources are contributed by the employees at rates fixed by law and by the City at amounts determined by annual actuarial valuations. City Commission and Volunteer Firefighters Pension Trust Funds to account for the accumulation of resources to be used for retirement benefit payments to city commissioners and volunteer firefighters. Resources are contributed by the City at rates fixed by the City. Defined Contribution Plans to account for the assets of six employee 401(a) plans for which the City acts as an agent on behalf of plan participants. OPEB Trust Fund to account for the accumulation of resources to be used for other post-employment benefit payments on behalf of the City s employees. Resources are contributed by the City at rates fixed by the City. 106

135 Fiduciary Funds Combining Statement of Net Assets September 30, 2009 General General Police City Volunteer Employees Employees Officers Firefighters Commission Firefighters 401 (a) Plan Assets Pension Pension Pension Pension Pension 6% Pooled cash and cash equivalents $ 209,857 $ 4,372,377 $ 995,141 $ 16,962 $ 209,266 $ - Government securities 1,443,941 20,491,236-71, ,657 - Other debt securities 1,550,495 5,628, Common stock 2,601,064 53,172,449 10,849, Mutual funds ,067, ,336 7,255,791 Pending trades - 377, , Contributions receivable - - 1,190, Interest receivable 39, ,398 55, ,166 - Other assets ,231 Total assets 5,845,168 84,297,390 23,767,344 89,170 1,476,425 7,807,022 Liabilities: Accounts payable and accrued liabilities - 122,208 19, Pending trades - 1,347, , Total liabilities - 1,469, , Net assets held in trust for pension benefits $ 5,845,168 $ 82,828,014 $ 23,117,500 $ 89,170 $ 1,476,425 $ 7,807,

136 General Employees Management Management Management 401 (a) Plan 401 (a) Plan 401 (a) Plan 401 (a) Plan City Manager OPEB 8% 0% 5% 10% 401 (a) Plan Trust Total $ - $ - $ - $ - $ - $ 1,293,553 $ 7,097, ,892, ,179, ,623,056 23,750,844 3,285,199 1,279,446 5,175, ,989-51,877, , ,190, , ,032 25,831 52,568 46, ,665,027 24,739,876 3,311,030 1,332,014 5,221, ,989 1,293, ,867, , ,977, ,119,220 $ 24,739,876 $ 3,311,030 $ 1,332,014 $ 5,221,807 $ 686,989 $ 1,293,553 $ 157,748,

137 Fiduciary Funds Combining Statement of Changes in Net Assets Fiscal Year Ended September 30, 2009 General General Police City Volunteer Employees Employees Officers Firefighters Commission Firefighters 401 (a) Plan Pension Pension Pension Pension Pension 6% Additions: Employee contribution $ 43,282 $ 1,308,763 $ 1,310,456 $ - $ - $ 239,360 Employer contribution 500,000 6,641,793 1,900,000 17, ,732 State contribution - 918,650 1,190, Total contributions 543,282 8,869,206 4,401,095 17, ,092 Investment income 221,721 2,244,893 1,152,271 2,338 27,238 24,788 Net appreciation (depreciation) in fair value of investments (21,013) (2,562,077) 214, (3,976) 194,536 Other income - 12, ,708 (304,369) 1,366,303 3,256 23, ,324 Less investment expense - (487,438) (26,141) Net investment income (loss) 200,708 (791,807) 1,340,162 3,256 23, ,324 Total 743,990 8,077,399 5,741,257 20,954 23, ,416 Deductions: Benefit payments 739,967 5,022, ,722 10, ,367 DROP payments and other - 1,728, Rollover ,784 Refunds - 15,579 36,829-12,338 - Loan defaults ,904 Administrative expenses 78,810 10,949 68,064-1,391 4,972 Total 818,777 6,778, ,615 10,800 13, ,027 Net increase (decrease) in plan net assets (74,787) 1,299,204 5,520,642 10,154 9, ,389 Net assets held in trust for pension benefits, beginning of year 5,919,955 81,528,810 17,596,858 79,016 1,466,892 7,624,633 Net assets held in trust for pension benefits, end of year $ 5,845,168 $ 82,828,014 $ 23,117,500 $ 89,170 $ 1,476,425 $ 7,807,

138 General Employees Management Management Management 401 (a) Plan 401 (a) Plan 401 (a) Plan 401 (a) Plan City Manager OPEB 8% 0% 5% 10% 401 (a) Plan Trust Total $ 1,004,305 $ - $ 31,321 $ 229,601 $ 11,459 $ - $ 4,178,547 1,036,412 81,642 78, ,319 45, ,000 11,591, ,109,289 2,040,717 81, , ,920 57, ,000 17,879,305 74,683 4,093 2,121 1, ,755, ,604 (12,205) 35,375 57,147 (10,097) 19,552 (1,824,204) , ,287 (8,112) 37,496 58,573 (10,097) 19,552 1,944, (513,579) 338,287 (8,112) 37,496 58,573 (10,097) 19,552 1,430,604 2,379,004 73, , ,493 47, ,552 19,309,909 1,300, ,857 53,171 62, ,215, ,728,914 8, , , , , ,313 7, , ,611 1,499, ,918 53,335 67,019-1,013 10,389, ,416 (248,388) 93, ,474 47, ,539 8,920,893 23,860,460 3,559,418 1,238,494 4,713, , , ,827,675 $ 24,739,876 $ 3,311,030 $ 1,332,014 $ 5,221,807 $ 686,989 $ 1,293,553 $ 157,748,

139

140 CITY OF CORAL SPRINGS, FLORIDA Index Statistical Section This part of the City of Coral Springs comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City s overall financial health. Financial Trends These schedules contain trend information to help the reader understand how the City s financial performance and well-being have changed over time. Page Net Assets by Component 111 Changes in Net Assets Fund Balances, Governmental Funds Changes in Fund Balances, Governmental Funds Tax Revenues by Source, Governmental Funds 118 Revenue Capacity These schedules contain information to help the reader assess the factors affecting the City s ability to generate its property taxes. Total Taxable Assessed Value as a Percentage of Estimated Total Fair Market Value Direct and Overlapping Property Tax Rates Principal Property Taxpayers 123 Property Tax Levies and Collections 124 Water Sold by Type of Customer 125 Water and Sewer Rates 126

141 Debt Capacity These schedules present information to help the reader assess the affordability of the City s current levels of outstanding debt and the City s ability to issue additional debt in the future. Ratios of Outstanding Debt by Type Ratios of General Bonded Debt Outstanding 129 Direct and Overlapping Governmental Activities Debt 130 Legal Debt Margin Information 131 Pledged-Revenue Coverage 132 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City s financial activities take place and to help make comparisons over time and with other governments. Demographic and Economic Statistics 133 Principal Employers 134 Operating Information These schedules contain information about the City s operations and resources to help the reader understand how the City s financial information relates to the services the City provides and the activities it performs. Full-Time Equivalent City Government Employees by Function 135 Operating Indicators by Function 136 Capital Asset Statistics by Function 137 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The City implemented Statement 34 in fiscal year 2003; schedules presenting governmentwide information include information beginning that year.

142 Table 1 Net Assets by Component Last Seven Fiscal Years (Accrual Basis of Accounting) Governmental activities Invested in capital assets, net of related debt $ 120,383,738 $ 117,645,324 $ 84,257,672 $ 76,644,662 $ 65,581,508 $ 77,193,728 $ 73,895,642 Restricted 7,344,109 20,665,949 8,543,612 9,327,518 8,075,966 16,467,944 15,702,018 Unrestricted 86,167,181 70,326,572 98,673,694 88,195,532 93,040,497 60,365,221 51,655,636 Total governmental activities net assets $ 213,895,028 $ 208,637,845 $ 191,474,978 $ 174,167,712 $ 166,697,971 $ 154,026,893 $ 141,253,296 Business-type activities Invested in capital assets, net of related debt $ 33,645,340 $ 31,588,085 $ 29,506,435 $ 27,086,153 $ 26,005,058 $ 25,675,482 $ 24,690,181 Restricted 2,704, , , , , ,000 - Unrestricted 1,902,269 3,721,359 5,552,482 7,187,763 8,758,924 9,842,195 13,350,965 Total business-type activities net assets $ 38,251,934 $ 35,809,444 $ 35,558,917 $ 34,773,916 $ 35,263,982 $ 36,017,677 $ 38,041,146 Primary government Invested in capital assets, net of related debt $ 154,029,078 $ 149,233,409 $ 113,764,107 $ 103,730,815 $ 91,586,566 $ 102,869,210 $ 98,585,823 Restricted 10,048,434 21,165,949 9,043,612 9,827,518 8,575,966 16,967,944 15,702,018 Unrestricted 88,069,450 74,047, ,226,176 95,383, ,799,421 70,207,416 65,006,601 Total primary government net assets $ 252,146,962 $ 244,447,289 $ 227,033,895 $ 208,941,628 $ 201,961,953 $ 190,044,570 $ 179,294,442 Note: The City began to report accrual information when it implemented GASB 34 in fiscal year Source: City of Coral Springs, Financial Services Department 111

143 Changes in Net Assets Last Seven Fiscal Years (Accrual Basis of Accounting) Expenses Governmental activities: General government $ 13,127,189 $ 14,641,854 $ 14,808,284 $ 44,308,179 $ 13,464,797 $ 11,794,349 $ 11,285,289 Police 40,876,135 36,494,923 33,394,504 33,690,873 31,320,674 29,952,962 28,246,092 Fire 22,344,627 20,683,298 19,782,039 17,178,547 15,230,961 12,790,616 11,795,738 Parks and recreation 15,448,561 15,042,019 14,730,150 15,100,850 14,890,015 13,806,972 11,699,451 Public works 6,761,456 6,439,801 7,869,622 6,579,290 6,563,314 7,276,328 8,104,466 Development services 7,496,283 8,132,722 6,767,514 6,700,607 6,685,116 5,419,544 5,132,494 Educational and cultural programs 12,176,680 12,204,784 11,844,858 10,825,111 9,926,377 9,716,901 8,657,583 Conference center 281, , , ,351 49, , ,977 Interest on long-term debt 2,526,261 2,604,040 3,372,463 2,678,772 2,019,479 2,204,449 2,440,420 Total governmental activities expenses 121,038, ,472, ,807, ,176, ,149,849 93,321,898 87,679,510 Business-type activities: Water 6,469,192 6,062,492 5,029,745 5,471,372 5,807,896 5,844,110 5,484,106 Sewer 6,982,647 9,172,769 9,602,467 8,813,064 8,478,861 7,761,899 7,358,306 Center for the Arts 1,027,055 1,049,618 1,132,081 1,155,067 1,174,767 1,218,066 1,359,357 Total business-type activities expenses 14,478,894 16,284,879 15,764,293 15,439,503 15,461,524 14,824,075 14,201,769 Total primary government expenses $ 135,517,769 $ 132,757,613 $ 128,571,494 $ 152,616,083 $ 115,611,373 $ 108,145,973 $ 101,881,279 Program Revenues Governmental activities: Charges for services: General government $ 2,174,721 $ 2,208,494 $ 2,481,062 $ 2,247,736 $ 2,170,968 $ 1,900,250 $ 1,689,844 Police 1,590,776 1,834,110 2,592,045 2,646,184 2,598,602 2,465,333 2,593,703 Fire 16,499,855 14,803,529 13,945,223 11,732,599 11,960,543 9,673,496 3,149,033 Parks and recreation 4,037,915 3,827,362 3,704,218 3,392,903 3,487,017 3,204,897 3,267,455 Public works 1, ,025 1, , , ,326 Development services 4,456,091 4,837,274 5,877,633 5,240,817 4,254,016 3,363,595 3,383,749 Educational and cultural programs 1,447,034 1,438,990 1,539,473 1,573,373 1,216,007 1,200,000 1,276,603 Conference center 166, , , ,704 46, , ,847 Operating grants and contributions 13,598,743 17,060,724 12,842,420 34,729, ,632 2,667, ,657 Capital grants and contributions 2,811,268 4,209,825 2,022, ,046 1,889,118 2,298, ,080 Total governmental activities program revenues $ 46,784,205 $ 50,390,573 $ 45,165,879 $ 62,611,422 $ 28,555,493 $ 27,673,175 $ 17,086,297 (Continued) 112

144 Table 2 Changes in Net Assets (Continued) Last Seven Fiscal Years (Accrual Basis of Accounting) Business-type activities: Charges for services: Water $ 7,559,980 $ 7,167,373 $ 6,442,345 $ 6,440,241 $ 6,501,590 $ 6,345,275 $ 6,372,548 Sewer 8,649,664 8,229,874 8,047,335 8,045,022 8,084,162 7,974,391 7,853,329 Center for the Arts - 44,203 86, , , ,475 Capital grants and contributions 149, , , , Total business-type activities program revenues 16,359,008 15,918,332 14,910,001 15,075,410 14,585,752 14,525,814 14,458,352 Total primary government program revenues $ 63,143,213 $ 66,308,905 $ 60,075,880 $ 77,686,832 $ 43,141,245 $ 42,198,989 $ 31,544,649 Net (Expense)/Revenue Governmental activities (74,254,670) (66,082,161) (67,641,322) (74,565,158) (71,594,356) (65,648,723) (70,593,213) Business-type activities 1,880,114 (366,547) (854,292) (364,093) (875,772) (298,261) 256,583 Total primary government net expense $ (72,374,556) $ (66,448,708) $ (68,495,614) $ (74,929,251) $ (72,470,128) $ (65,946,984) $ (70,336,630) General Revenues and Other Changes in Net Assets Governmental activities: Taxes: Ad valorem, levied for general purpose $ 31,947,040 $ 33,747,149 $ 35,411,380 $ 30,523,566 $ 27,055,409 $ 24,633,008 $ 22,495,054 Ad valorem, levied for debt service 1,671,274 1,780,829 1,954,367 1,981,503 2,743,518 2,630,997 3,038,915 Franchise taxes 10,599,427 10,993,396 10,419,429 10,257,379 8,610,108 8,211,651 7,867,761 Utility taxes 8,938,082 8,915,560 8,904,088 8,975,176 8,672,235 8,409,569 8,457,976 Communication taxes 6,806,077 6,179,509 5,840,490 6,003,003 5,778,167 5,869,425 6,019,213 Gas taxes 2,288,006 2,348,110 2,362,796 2,401,713 2,376,521 2,358,100 2,292,054 Special assessments ,692,800 Intergovernmental not restricted to specific programs 12,753,996 13,303,309 13,436,207 15,851,806 23,955,098 20,727,136 19,394,528 Investment income 3,675,424 5,285,694 6,024,655 3,844,867 2,241,145 1,436,064 2,322,024 Miscellaneous 1,249,828 1,079,572 1,117,901 1,183,791 2,590,042 1,155,017 1,261,521 Capital contributions not restricted to specific programs , ,771 Transfers (417,301) (388,100) (522,725) 1,012, ,494 2,543,052 1,345,000 Total governmental activities 79,511,853 83,245,028 84,948,588 82,034,899 84,365,737 78,422,320 79,931,617 Business-type activities: Intergovernmental , Investment income 145, , , , , , ,401 Miscellaneous (916) 25,700 4, , , , ,064 Capital contributions not restricted to specific programs ,625 58,535 5,166 Transfers 417, , ,725 (1,012,095) (343,494) (2,543,052) (1,345,000) Total business-type activities 562, ,074 1,639,293 (125,973) 122,077 (1,725,208) (214,369) Total primary government $ 80,074,229 $ 83,862,102 $ 86,587,881 $ 81,908,926 $ 84,487,814 $ 76,697,112 $ 79,717,248 Change in Net Assets Governmental activities $ 5,257,183 $ 17,162,867 $ 17,307,266 $ 7,469,741 $ 12,771,381 $ 12,773,597 $ 9,338,404 Business-type activities 2,442, , ,001 (490,066) (753,695) (2,023,469) 42,214 Total primary government $ 7,699,673 $ 17,413,394 $ 18,092,267 $ 6,979,675 $ 12,017,686 $ 10,750,128 $ 9,380,618 Note: The City began to report accrual information when it implemented GASB 34 in fiscal year Source: City of Coral Springs, Financial Services Department 113

145 Fund Balances, Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) General Fund Reserved $ 3,485,559 $ 3,492,990 $ 672,021 $ 902,239 $ 856,872 Unreserved 24,737,703 26,397,467 26,728,114 30,410,538 37,476,236 Total general fund $ 28,223,262 $ 29,890,457 $ 27,400,135 $ 31,312,777 $ 38,333,108 All Other Governmental Funds Reserved $ 6,901,087 $ 1,168,225 $ 510,068 $ 9,563,801 $ 14,201,821 Unreserved, reported in: Special revenue funds 16,853,483 16,727,609 9,937,607 12,325,932 11,491,339 Capital project funds 16,526,688 24,178,347 25,790,901 11,740,498 8,696,339 Debt service fund 2,608,203 4,352,111 8,940,372-1,365,000 Total all other governmental funds $ 42,889,461 $ 46,426,292 $ 45,178,948 $ 33,630,231 $ 35,754,499 Source: City of Coral Springs, Financial Services Department 114

146 Table $ 863,277 $ 5,010,126 $ 2,530,130 $ 1,696,467 $ 5,061,966 31,944,400 24,706,811 23,634,624 21,212,073 11,722,828 $ 32,807,677 $ 29,716,937 $ 26,164,754 $ 22,908,540 $ 16,784,794 $ 12,463,285 $ 16,563,739 $ 12,466,700 $ 10,345,278 $ 6,287,626 8,335,536 8,057,598 7,996,270 6,139,624 3,072,199 11,709,137 12,198,129 7,160,134 13,116,924 13,981, $ 32,507,958 $ 36,819,466 $ 27,623,104 $ 29,601,826 $ 23,340,

147 Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) Revenues Ad valorem taxes $ 33,618,314 $ 35,527,978 $ 37,365,747 $ 32,505,069 $ 29,798,927 Franchise fees 10,599,427 10,993,396 10,419,429 10,257,379 8,610,108 Utility taxes 8,938,082 8,915,560 8,904,088 8,975,176 8,672,235 Intergovernmental 36,781,577 40,491,360 39,769,789 55,039,704 36,280,806 Non ad valorem special assessment 7,499,229 7,126,348 6,099,446 5,666,355 5,505,110 Licenses and permits 3,590,039 3,966,295 5,370,595 4,565,124 3,665,701 Charges for services 16,404,682 15,658,480 15,464,201 11,717,550 13,297,356 Fines and forfeitures 1,681,200 5,536,410 2,012,233 2,361,470 2,176,921 Interest and other 5,533,735 7,009,791 7,648,194 5,755,681 5,017,966 Total revenues 124,646, ,225, ,053, ,843, ,025,130 Expenditures General government 13,192,355 14,246,678 14,750,179 44,264,767 13,253,042 Police 41,504,188 38,468,530 36,928,923 35,645,602 33,258,999 Fire 23,111,905 21,268,233 21,410,822 21,951,568 16,500,253 Parks and recreation 12,381,922 14,273,763 14,208,445 14,632,633 14,212,386 Public works 4,118,979 5,730,140 6,827,409 6,232,644 6,153,134 Development services 6,626,584 6,260,695 6,285,417 6,225,832 5,033,918 Educational and cultural programs 11,986,120 12,227,142 13,507,375 10,710,113 9,517,951 Capital outlay 11,065,307 4,454,338 2,342, ,051 1,529,685 Debt service Principal 3,888,217 29,434,135 2,725,000 3,725,000 3,998,434 Interest 2,066,878 3,103,917 3,434,583 2,670,994 2,229,113 Bond issuance costs Refunding bond issuance costs Total expenditures 129,942, ,467, ,420, ,998, ,686,915 Excess (deficiency) of revenues over (under) expenditures (5,296,170) (14,241,953) 10,632,855 (10,154,696) 7,338,215 Other Financing Sources (Uses) Issuance of debt 518,217 16,830,000 13,500, Refunding bonds issues ,960,000 Premium received (discount paid) - 59,136 (95,747) - 173,616 Closing costs provided ,667 Other financing sources ,418 Payment to refunded bond escrow agent - (16,889,136) - - (32,338,308) Refunding bond issuance costs (165,025) Sale of assets ,535,022 Transfers in 9,937,427 31,931,588 13,579,238 12,971,256 15,506,168 Transfers out (10,363,500) (32,771,171) (11,161,069) (11,961,159) (15,408,498) Total other financing sources (uses) 92,144 (839,583) 15,822,422 1,010,097 1,534,060 Net change in fund balances $ (5,204,026) $ (15,081,536) $ 26,455,277 $ (9,144,599) $ 8,872,275 Debt service as a percentage of noncapital expenditures 5.0% 23.6% 5.5% 4.7% 6.3% Source: City of Coral Springs, Financial Services Department 116

148 Table $ 27,264,005 $ 25,533,968 $ 24,037,671 $ 22,172,868 $ 18,375,830 8,211,651 7,867,761 7,291,450 8,495,246 7,685,070 8,409,569 8,457,976 8,111,157 12,184,552 11,540,333 30,866,827 28,504,080 28,378,126 22,236,453 21,670,711 5,002,346 4,692,800 3,108,804 3,058,217 3,594,372 2,924,165 2,990,747 3,108,452 4,280,500 4,039,945 10,398,821 9,647,316 7,586,745 6,771,794 5,746,044 2,009,056 1,979,682 1,805,159 1,967,887 1,787,143 4,014,057 4,976,631 8,536,335 6,298,633 3,932,299 99,100,497 94,650,961 91,963,899 87,466,150 78,371,747 11,339,517 12,379,899 10,579,686 12,243,412 14,294,422 31,534,320 28,972,359 24,401,563 23,362,282 21,843,721 12,786,961 11,613,896 8,871,433 7,709,051 6,111,200 18,967,450 13,696,133 9,548,432 8,999,866 8,284,024 7,217,499 5,150,112 4,055,402 3,791,299 3,732,625 4,678,905 4,879,339 4,345,480 3,939,525 3,796,069 9,783,320 8,685,028 8,837,842 8,143,015 6,258,847 1,186, ,286 7,948,897 8,277,975 12,754,597 3,340,000 2,948,944 12,545,000 3,820,000 10,495,000 2,150,369 2,430,890 3,242,946 3,110,622 3,283, , , , , ,984,485 91,851,932 95,034,232 83,638,050 90,854,109 (3,883,988) 2,799,029 (3,070,333) 3,828,100 (12,482,362) - 8,875,000-37,080,342 8,130,000-7,382, (7,344,799) - (26,827,639) ,015,069 30,948,538 16,897,140 4,736,742 14,653,603 (10,351,849) (29,911,919) (12,549,315) (6,432,896) (9,491,096) 2,663,220 9,949,516 4,347,825 8,556,549 13,292,507 $ (1,220,768) $ 12,748,545 $ 1,277,492 $ 12,384,649 $ 810, % 6.6% 18.1% 9.2% 17.6% 117

149

150 Table 5 Tax Revenues by Source, Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) Property Franchise Utility Fiscal Year Taxes Fees Taxes 2000 $ 18,375,830 $ 7,685,070 $ 11,540, ,172,868 8,495,246 12,184, ,037,671 7,291,450 8,111, ,533,968 7,867,761 8,457, ,264,005 8,211,651 8,409, ,798,927 8,610,108 8,672, ,505,069 10,257,379 8,975, ,365,747 10,419,429 8,904, ,527,978 10,993,396 8,915, ,618,314 10,599,427 8,938,082 Change % 37.9% (-22.5%) Source: City of Coral Springs, Financial Services Department 118

151 Total Taxable Assessed Value as a Percentage of Estimated Total Fair Market Value Last Ten Fiscal Years Just Value Less: Total Taxable Real Personal Tax-Exempt Assessed Fiscal Year Tax Year Property Property Property Value (1) $ 5,310,761,660 $ 303,299,864 $ 860,268,635 $ 4,753,792, ,789,284, ,425, ,692,286 5,176,018, ,447,844, ,048,697 1,180,986,822 5,604,905, ,356,877, ,441,476 1,609,663,592 6,106,655, ,527,616, ,888,668 2,191,749,433 6,692,755, ,554,606, ,784,420 2,629,617,224 7,286,774, ,305,867, ,562,433 3,440,590,241 8,243,839, ,203,814, ,966,915 5,080,936,457 9,505,845, ,562,145, ,000,976 5,526,923,930 10,397,223, ,373,016, ,658,122 4,940,486,847 9,801,188,095 Note: Tax Roll Ad Valorem Assessments are determined as of January 1st for each ensuing fiscal year. Per Florida State Statutes property must be assessed at 100% of Market Value; Just Value is Market Value less reasonable fees and costs of purchase, etc. for Real Property. Personal Property figures assume on average the Assessed Value has been depreciated 45% from the cost net. (1) Figures As of November (DR-403) versus previous July 1st DR-420; The Prior Year's Final Gross Taxable Value appears (Line 7) on the next Tax Year's DR-420. The Difference between Total Taxable Assessed Value and Final Gross Taxable Value is Value Adjustment Board (VAB) Changes. (2) Total Direct Tax Rate is the sum of the City's Operating and Debt Millage Rates. (3) Estimated Total Fair Market Value figures based on Real Property assessed on average at 88% and Personal Property at 55%. Source: Broward County, Florida Property Appraiser- Form DR-403 (Revised Recapitulation of the Ad Valorem Assessment Rolls For Coral Springs) 119

152 Table 6 Total Taxable Assessed Value Total Estimated as a Percentage of Direct Tax Total Fair Estimated Total Rate (2) Market Value (3) Fair Market Value $ 6,586,410, % ,195,870, % ,941,729, % ,013,617, % ,339,361, % ,515,297, % ,535,871, % ,837,001, % ,342,440, % ,003,261, % 120

153 Direct and Overlapping Property Tax Rates Last Ten Fiscal Years City of Coral Springs County Debt Total Debt Total Operating Service City Operating Service County Fiscal Year Millage Millage Millage Millage Millage Millage (1) (1) Increase is due to decision by the Fourth District Court of Appeals that has caused the City to move the cost of the EMS Division from the Fire Rescue Fund into the General Fund. No increase to the prior year's millage rate would have been necessary without this change. Source: Broward County, Florida Property Appraiser. 121

154 Table 7 Overlapping Rates School District North South Florida Florida Total Debt Total Broward Water Inland Direct & Operating Service School Children's Hospital Management Navigation Overlapping Millage Millage Millage Services District District District Rates

155 Table 8 Principal Property Taxpayers Current Year and Nine Years Ago Percentage Percentage of Total City of Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value Coral-CS/LTD Associates $ 100,151, % $ 70,625, % North Broward Hospital District 84,153, % Knickerbocker Properties Inc. 46,936, % Spa the Grove LLC 46,653, % JPI Coral Springs LP 44,405, % 34,788, % ERP Operating LP 35,249, % 21,698, % Wal-Mart Stores East LP 34,231, % ProLogis 33,378, % Target Corporation 31,300, % Cabot 30,450, % Florida Power & Light ,168, % Rayman Sutton Place Trust ,868, % Southern Bell Tel. Company ,243, % John Q. Hammons Hotels Two LP ,070, % Merry Land & Invest Company Inc ,241, % United Dominion Realty Trust ,493, % AEW #69 Corporation ,582, % Total $ 486,911, % $ 321,782, % Source: Broward County, Florida Revenue Collector 123

156 Table 9 Property Tax Levies and Collections Last Ten Fiscal Years Collected within the Taxes Levied Fiscal Year of the Levy Collections Total Collections to Date for the Percentage in Subsequent Percentage Fiscal Year Fiscal Year Amount of Levy Years Amount of Levy 2000 $ 18,972,683 $ 18,908, % $ 32,640 $ 18,941, % ,074,075 23,006, % 35,432 23,041, % ,995,181 24,885, % 39,910 24,925, % ,530,345 26,440, % 38,624 26,478, % ,296,047 28,174, % 70,269 28,245, % ,839,629 30,754, % 42,348 30,796, % ,713,683 33,612, % 54,453 33,667, % ,573,689 38,479, % 16,220 38,496, % ,737,808 36,588, % 80,616 36,588, % ,574,072 34,474, % - 34,474, % Source: Broward County, Florida Revenue Collector 124

157 Table 10 Water Sold by Type of Customer Last Four Fiscal Years (In millions of gallons) Type of Customer Fiscal Year Fiscal Year Fiscal Year Fiscal Year Residential Single Family 970, ,519 1,028,989 1,047,724 Residential Multi-Family 762, , , ,086 Commercial 177, , , ,214 Irrigation 147, , , ,752 Public-private 85,459 65,171 60,385 68,414 Construction 1,267 1,720 2,400 1,350 Fire Hydrant 1, , Total 2,145,972 2,159,895 2,348,525 2,479,252 Total direct rate per 1,000 gallons $ 1.36 $ 1.36 $ 0.93 $ 0.93 Note: The City began to report water sales information in fiscal year Source: City of Coral Springs, Financial Services Department 125

158 Table 11 Water and Sewer Rates Last Ten Fiscal Years Water Sewer Monthly Rate per Monthly Rate per Fiscal Year Base Rate 1,000 Gallons Base Rate 1,000 Gallons 2000 $ $ 0.93 $ $ Note: Rates are based on 1" meter, which is the standard household meter size. Source: City of Coral Springs, Financial Services Department 126

159 Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities General General Obligation Revenue Obligation Refunding Revenue Refunding Capital Fiscal Year Bonds Bonds Bonds Bonds Leases 2000 $ 3,975,000 $ 20,870,000 $ 31,675,001 $ 31,110,000 $ 181, ,465,000 19,505,000 41,485,000 29,165, ,245,000 17,750,000 41,485,000 18,595, ,135,000 49,885,000 18,160, ,825,000 49,310,000 17,705, ,470,000 45,820,000 20,330, ,365,000 45,295,000 19,235, ,500,000 11,280,000 44,770,000 18,120, ,500,000 10,170,000-33,800, ,500,000 9,025,000-31,575,000 - Source: City of Coral Springs, Financial Services Department 127

160 Table 12 Business-Type Activities State Revenue Revolving Total Percentage Refunding Fund Primary of Personal Per Bonds Loans Government Income Capita $ 26,850,000 $ - $ 114,661, % $ ,385, ,005, % ,600, ,675, % ,750, ,930, % ,790, ,630, % ,795,000-99,415, % ,750,000-93,645, % ,650, ,320, % ,490,000-69,960, % ,260,000 2,501,507 66,861, %

161 Table 13 Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years General Bonded Debt Outstanding General Percentage of General Obligation Actual Taxable Obligation Refunding Value of Per Fiscal Year Bonds Bonds Total Property Capita 2000 $ 3,975,000 $ 20,870,000 $ 24,845, % $ ,465,000 19,505,000 22,970, % ,245,000 17,750,000 20,995, % ,135,000 19,135, % ,825,000 16,825, % ,470,000 14,470, % ,365,000 12,365, % ,500,000 11,280,000 24,780, % ,500,000 10,170,000 23,670, % ,500,000 9,025,000 22,525, % Source: City of Coral Springs, Financial Services Department 129

162 Table 14 Direct and Overlapping Governmental Activities Debt As of September 30, 2009 Estimated Share of Estimated Direct and Debt Percentage Overlapping Governmental Unit Outstanding Applicable Debt Broward County $ 443,997, % $ 26,051,795 Subtotal, overlapping debt 26,051,795 City direct debt 22,525,000 Total direct and overlapping debt $ 48,576,795 Sources: Assessed value data used to estimate applicable percentages provided by the Broward County, Florida Property Appraiser. Debt outstanding data provided by each governmental unit. 130

163 Table 15 Legal Debt Margin Information Last Ten Fiscal Years The charter of the City of Coral Springs does not impose a bonded debt limit. 131

164 Table 16 Pledged-Revenue Coverage Last Ten Fiscal Years Water and Sewer Revenue Bonds Less: Net Gross Operating Available Debt Service Fiscal Year Revenue (1) Expenses (2) Revenue Principal Interest Coverage 2000 $ 14,265,770 $ 8,165,947 $ 6,099,823 $ 1,400,000 $ 1,508, ,139,036 7,932,760 6,206,276 1,465,000 1,443, ,571,084 8,890,142 5,680,942 1,420,417 (3) 1,289, ,525,695 9,391,930 5,133,765 1,850, , ,465,989 10,210,715 4,255,274 1,960, , ,754,619 10,805,282 3,949,337 1,995, , ,804,941 10,823,808 3,981,133 2,045, , ,831,383 11,259,961 3,571,422 2,100, , ,600,521 11,741,495 3,859,026 2,160, , ,355,635 9,962,799 6,392,836 2,230, , (1) Includes operating revenue and interest income. (2) Includes other nonoperating expenses and excludes depreciation, interest, and amortization of bond issue costs. (3) Principal amount includes 11/12 of the principal on 1992 bond issuance which was refunded on July 1, Balance also includes $50,000 principal payment on 1998 issuance. 132

165 Table 17 Demographic and Economic Statistics Last Ten Fiscal Years Per Capita Fiscal Personal Personal Median School Unemployment Year Population (1) Income Income (2) Age (2) Enrollment (3) Rate (4) ,549 $ 3,212,143,974 $ 27, , % ,085 3,236,771,090 26, , % ,687 3,421,126,995 27, , % ,000 3,459,600,000 27, , % ,711 3,826,672,200 30, , % ,852 3,867,336,924 30, , % ,615 4,211,450,580 32, , % ,766 4,393,487,462 33, , % ,930 4,452,726,480 34, , % ,198 4,209,109,018 33, , % Source: (1) Bureau of Economic and Business Research (2) U.S. Bureau of Census ESRI (3) School Board of Broward County, Florida (4) State of Florida LAUS 133

166 Table 18 Principal Employers Current Year and Nine Years Ago Percentage Percentage of Total City of Total City Employer Employees Rank Employment Employees Rank Employment Broward County Schools 2, % Walmart/Sam's Club 1, % Publix Supermarkets 1, % Coral Springs Medical Center 1, % Alliance Entertainment 1, % First Data % City of Coral Springs % Coral Springs Auto Mall % Macy's % Target % Total 10, % - - Note: Information for 2000 is unavailable. Source: Coral Springs Economic Development Foundation. 134

167 Table 19 Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years Function General government Police Fire & EMS Parks and recreation Public works Development services Water and sewer Equipment services Other Total Source: City of Coral Springs, Financial Services Department 135

168 Table 20 Operating Indicators by Function Last Four Fiscal Years Fiscal Year Fiscal Year Fiscal Year Fiscal Year Function General government Building permits issued 8,336 11,065 16,535 15,103 Building inspections conducted 29,003 43,110 83,577 60,769 Police Physical arrests 3,219 2,780 3,134 3,155 Parking violations 3,645 4,261 5,303 3,908 Traffic violations 17,930 22,617 28,674 26,791 Fire Emergency responses 13,216 13,571 14,671 9,000 Fires extinguished Inspections 6,898 6,540 2,969 1,425 Public works Streets resurfacing (miles) Potholes repaired Recreation and culture Athletic field permits issued 1,280 1,660 1,200 1,150 City centers admissions 124, , , ,000 Water Consumers 12,862 12,803 12,788 12,694 Water main breaks Average daily consumption (thousands of gallons) 6,286 5,847 6,792 8,360 Sewer Average daily sewage treatment (thousands of gallons) 8,369 8,484 7,560 8,200 Transit Total route miles 92,854 90,163 84,000 70,800 Passengers 108, , , ,594 Note: The information for fiscal years is unavailable. Source: City of Coral Springs, Florida 136

169 Table 21 Capital Asset Statistics by Function Last Four Fiscal Years Fiscal Year Fiscal Year Fiscal Year Fiscal Year Function Police Stations Substations Patrol units Fire Stations Public works Streets (lane miles) Streetlights Recreation and culture Parks Parks acres Playgrounds Playgrounds acres Pools Tennis courts Baseball/softball diamonds Soccer/football fields City centers Community centers Water Water mains (miles) Fire hydrants 1,054 1,500 1,500 1,054 Storage capacity (millions of gallons) 8,400 8,400 8,400 8,400 Sewer Sanitary sewers (miles) Treatment capacity (thousands of gallons) 9,790 9,790 9,790 9,790 Transit Buses Note: The information for fiscal years is unavailable. Source: City of Coral Springs, Florida 137

170 Independent Auditor s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards The Honorable Mayor, City Commission and City Manager City of Coral Springs, Florida We have audited the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate discretely presented component unit and remaining fund information of the City of Coral Springs, Florida (the City ), as of and for the year ended September 30, 2009, which collectively comprise the City s basic financial statements and have issued our report thereon dated February 18, We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control over Financial Reporting In planning and performing our audit, we considered the City's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial reporting. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected by the entity's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity's internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. McGladrey & Pullen, LLP is a member firm of RSM International, an affiliation of separate and independent legal entities. 138

171 Compliance and Other Matters As part of obtaining reasonable assurance about whether the City s basic financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of management, the City Commission, federal awarding agencies and pass-through entities, and is not intended to be and should not be used by anyone other than these specified parties. Fort Lauderdale, Florida February 18,

172 Independent Auditor s Report on Compliance With Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133 The Honorable Mayor, City Commission and City Manager City of Coral Springs, Florida Compliance We have audited the compliance of the City of Coral Springs, Florida (the City ), with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended September 30, The City s major federal programs are identified in the summary of auditors results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of the City s management. Our responsibility is to express an opinion on the City s compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Nonprofit 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 s compliance with those requirements and performing such other procedures, as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the City s compliance with those requirements. In our opinion, the City complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended September 30, Internal Control over Compliance The management of the City is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the City s internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance but, not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. McGladrey & Pullen, LLP is a member firm of RSM International, an affiliation of separate and independent legal entities. 140