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CITY OF LEESBURG FLORIDA

COMPREHENSIVE

ANNUAL

FINANCIAL REPORT

FISCAL YEAR ENDING

SEPTEMBER 30, 2016

THE LAKEFRONT CITY

CITY OF LEESBURG, FLORIDA

COMPREHENSIVE ANNUAL FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016

Prepared by the Department of Finance

This page inten� onally le� blank.

CITY OF LEESBURG, FLORIDACOMPREHENSIVE ANNUAL FINANCIAL REPORT


TABLE OF CONTENTS

Introductory Section Page

Transmi� al Le� er 3 Principal City O� cials 12 Organiza� onal Chart 13 Cer� � cate of Achievement 14

Financial Section

Independent Auditor's Report 17

Management’s Discussion and Analysis 21

Basic Financial Statements

City-wide Financial Statements:Statement of Net Posi� on 39Statement of Ac� vi� es 40

Fund Financial Statements:Balance Sheet - All Governmental Funds 45Reconcilia� on of the Balance Sheet of Governmental Funds

to the Statement of Net Posi� on 47Statement of Revenues, Expenditures, and Changes in Fund

Balances - All Governmental Funds 49Reconcilia� on of the Statement of Revenues, Expenditures, and

Changes in Fund Balances of the Governmental Funds to theStatement of Ac� vi� es 51

Statement of Net Posi� on - Proprietary Funds 54Statement of Revenues, Expenses, and Changes in Fund Net

Posi� on - Proprietary Funds 58Statement of Cash Flows - Proprietary Funds 60Statement of Fiduciary Net Posi� on 66Statement of Changes in Fiduciary Net Posi� on 67

Notes to Financial Statements 69

Required Supplementary InformationSchedule of Revenues, Expenditures, and Changes in Fund

Balance - Budget and Actual - General Fund 125Schedule of Revenues, Expenditures, and Changes in Fund

Balance - Budget and Actual – Community RedevelopmentAgency Funds 126



TABLE OF CONTENTS(Continued)

Financial Section (Concluded) Page

Required Supplementary Information (Concluded)

Schedules of Changes in Net Pension Liability and Related Ra� os 127Schedules of Contribu� ons 131

Schedules of Investment Returns 134OPEB Schedule of Funding Progress 135OPEB Schedule of Employer Contribu� ons 135

Supplemental Information

Combining Statements and SchedulesSupplemental Informa� on:

Combining Balance Sheet - Nonmajor Governmental Funds 140Combining Statement of Revenues, Expenditures, and Changes

in Fund Balances - Nonmajor Governmental Funds 142Schedule of Revenues and Expenditures - Budget and Actual:

Capital Projects Fund 144Housing Assistance Fund 145Police Forfeitures Fund 146Police Educa� on Fund 147Gas Tax Fund 148Police Impact Fee Fund 149Fire Impact Fee Fund 150Recrea� on Impact Fee Fund 151Building Permits Fund 152Debt Service Fund 153

Combining Statement of Net Posi� on – Nonmajor Enterprise Funds 156Combining Statement of Revenues, Expenses, and Changes in Fund

Net Posi� on – Nonmajor Enterprise Funds 159Combining Statement of Cash Flows – Nonmajor Enterprise Funds 160Combining Statement of Net Posi� on - Internal Service Funds 164Combining Statement of Revenues, Expenses, and Changes in Fund

Net Posi� on - Internal Service Funds 165Combining Statement of Cash Flows - Internal Service Funds 166Combining Balance Sheet - Community Redevelopment Agency Funds 170Combining Schedule of Revenues, Expenditures, and Changes

in Fund Balances – Community Redevelopment Agency Funds 171



TABLE OF CONTENTS(Continued)

Statistical Section (Unaudited) Page

Net Posi� on by Component 176Changes in Net Posi� on 178Fund Balances of Governmental Funds 182Changes in Fund Balances of Governmental Funds 184Assessed Value of Taxable Property 186Property Tax Rates-Direct and Overlapping Governments 187Principal Property Taxpayers 188Property Tax Levies and Collec� ons 189Governmental Ac� vi� es Tax Revenues by Source 190Greater Leesburg Community Redevelopment Agency - Historical Revenues 191Carver Heights/Montclair Area Community Redevelopment Agency - Historical Revenues 192U.S. Highway 441/27 Community Redevelopment Agency - Historical Revenues 193Ra� os of Outstanding Debt by Type 194Direct and Overlapping Governmental Ac� vi� es Debt 195Legal Debt Margin Informa� on 197Pledged-Revenue Coverage:

Capital Improvement Revenue Bonds/Notes 198Series 2015 Greater Leesburg CRA Revenue Note 200Series 2008 Carver Heights/Montclair Area CRA Revenue Note 202Series 2009 US Highway 441 & 27 Area CRA BAN 204Electric System Revenue Bonds/Notes 206U� lity System Revenue Bonds/Notes 208Communica� ons System Capital Improvement Revenue

Refunding Note, Series 2009 210Demographic and Economic Sta� s� cs 212Principal Employers 213Full-� me Equivalent City Government Employees by Func� on 214Opera� ng Indicators by Func� on 215Capital Asset Sta� s� cs by Func� on 216

Compliance Section

Independent Auditor’s Report on Internal Control overFinancial Repor� ng and on Compliance and Other Ma� ersBased on an Audit of Financial Statements Performed inAccordance with Government Auditing Standards 221

Independent Accountant’s Report 223Independent Auditor’s Management Le� er 224



TABLE OF CONTENTS(Concluded)

Debt Disclosure Section (Unaudited)

Historical Statements of Pledged Revenues and Debt Service Coverage 230Inter-U� lity Comparison of Typical Monthly U� lity Bills 240Ten Largest U� lity Customers 244City Ordinances Related to U� lity Rates 246Covenant to Budget and Appropriate Worksheets 276

INTRODUCTORY SECTION

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PO Box 490630 • Leesburg, Florida 34749-0630Ph 352-728-9720 • Fx 352-326-6632

www.leesburg� orida.gov

MISSION STATEMENT

”Dedicated to Our Community, Commi� ed to Service Excellence”

March 3, 2017

Honorable Mayor andMembers of the City Commission, andCi� zens of the City of Leesburg, Florida

It is our pleasure to submit this Comprehensive Annual Financial Report (CAFR) for the City of Leesburg,Florida (City) for the � scal year ended September 30, 2016. The report ful� lls the requirements set forthby State law, in accordance with Sec� on 218.39, Florida Statutes, and Chapter 10.500, Rules of theAuditor General, which require that all general purpose local governments publish each � scal year acomplete set of � nancial statements presented in conformity with generally accepted accoun� ngprinciples (GAAP) in the United States and audited in accordance with audi� ng standards generallyaccepted in the United States by a � rm of licensed cer� � ed public accountants.

This CAFR consists of management’s representa� ons concerning the � nances of the City. Consequently,management assumes full responsibility for the completeness and reliability of all of the informa� onpresented in this report. To provide a reasonable basis for making these representa� ons, managementof the City has established a comprehensive internal control framework that is designed both to protectthe City’s assets from loss, the� , or misuse and to compile su� cient reliable informa� on for theprepara� on of the City’s � nancial statements in conformity with GAAP. Because the cost of internalcontrols should not outweigh their bene� ts, the City’s comprehensive framework of internal controlshas been designed to provide reasonable, rather than absolute, assurance that the � nancial statementswill be free from material misstatement. As management, we assert that, to the best of our knowledgeand belief, this � nancial report is complete and reliable in all material respects.

Florida Statutes require that an annual � nancial audit be performed by independent cer� � ed publicaccountants. This year the audit was performed by Moore Stephens Lovelace, P.A. The goal of theindependent audit was to provide reasonable assurance that the � nancial statements of the City for the� scal year ended September 30, 2016 are free of material misstatement. The independent auditinvolved examining, on a test basis, evidence suppor� ng the amounts and disclosures in the � nancialstatements; assessing the accoun� ng principles used and signi� cant es� mates made by management;and evalua� ng the overall � nancial statement presenta� on. The independent auditor concluded, basedupon the audit, that there was reasonable basis for rendering an unmodi� ed opinion that the City’s� nancial statements for the � scal year ended September 30, 2016 are fairly presented in conformitywith GAAP. The independent auditor’s report is presented as the � rst component of the � nancialsec� on of this report.

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The City is also subject to a broader, mandated “Single Audit” designed to meet the special needs ofstate grantor agencies. The standards governing Single Audit engagements require the independentauditor to report not only on the fair presenta� on of the � nancial statements, but also on the auditedgovernment’s internal controls and compliance with legal requirements - with special emphasisinvolving the administra� on of federal and state awards. For the � scal year ended September 30, 2016,the City's expenditures of federal awards and state � nancial assistance did not meet the requiredFederal and State thresholds for repor� ng on such by the City or the independent auditor.

GAAP requires that management provide a narra� ve introduc� on, overview, and analysis to accompanythe basic � nancial statements in the form of Management’s Discussion and Analysis (MD&A). This le� erof transmi� al is designed to complement MD&A and should be read in conjunc� on with it. The City’sMD&A can be found immediately following the report of the independent auditor.

Profile of the Government

The City of Leesburg was founded and � rst se� led in 1857 by Evander H. Lee, a na� ve of Sumter, SouthCarolina. The City received its name as a result of shipping direc� ons given by Calvin Lee, Evander’sbrother, during a merchandising trip to New York City in 1866. By a ci� zen vote of 23 to 2, the City ofLeesburg was incorporated on July 12, 1875. The City was originally part of Sumter County and servedas the County seat un� l 1882 when the Florida Legislature created Lake County. The City has been apart of Lake County since then and is the oldest and second highest populated of the fourteenincorporated municipali� es in Lake County, which include Astatula, Clermont, Eus� s, Fruitland Park,Groveland, Howey-in-the-Hills, Lady Lake, Masco� e, Minneola, Montverde, Mount Dora, Tavares andUma� lla.

The City of Leesburg is a poli� cal subdivision of the State of Florida. As such, it is governed by, andderives its opera� ng authority from, the cons� tu� on and laws of the State of Florida. The City isempowered to levy a property tax on both real and personal proper� es located within its boundaries. Italso is empowered by state statute to extend its corporate limits by annexa� on, which occursperiodically when deemed appropriate by the governing body.

The City operates under a commission/manager form of government, with a governing body consis� ngof � ve City Commissioners, elected to staggered four-year terms. Three of the commission membersmust meet district residency requirements. The remaining two commissioners are elected at-largewithout a district residency requirement. One of the commissioners is selected by the other four asMayor to serve a one year term. The City Commission is responsible for, among other things, passingordinances and resolu� ons, adop� ng the budget, appoin� ng commi� ees, and hiring the City Managerand City A� orney. The City Manager is responsible for carrying out the policies and ordinances adoptedby the City Commission, for overseeing day-to-day opera� ons of the City, appoin� ng the departmentheads and approving the hiring of all employees.

The City provides a tradi� onal mix of governmental services, including police and � re protec� on, theconstruc� on and maintenance of streets and infrastructure, library, recrea� onal ac� vi� es, culturalevents, planning, zoning, housing, and administra� ve services. The City also provides a full range ofu� lity services, including electric, natural gas, solid waste, communica� ons (which includes internet and� ber op� c cable services), water, reuse water, wastewater treatment and stormwater drainage. TheCity has an interna� onal airport as well. In addi� on, the City has three Community RedevelopmentAgencies (CRA), which are Greater Leesburg, Carver Heights/Montclair Area and U.S. Highway 441&27.

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The City of Leesburg is situated between Lake Harris and Lake Gri� n in Lake County. To the south, theCity extends past the intersec� on of U.S. Highway 27 with County Road 48, and south on County Road33 past Florida’s Turnpike. The City extends west on County Road 48 and County Road 470 pastFlorida’s Turnpike to the Sumter County line. To the east, the City follows U.S. Highway 441 to CountyRoad 473; the north is bounded by U.S. Highway 441 at Fruitland Park. The City occupies a land area of40 square miles and has a popula� on of 22,000. The City of Leesburg is located in north central Floridamidway between the Gulf of Mexico and the Atlan� c Ocean, approximately 200 miles southeast of theState Capital, Tallahassee, 80 miles northeast of Tampa, 40 miles northwest of Orlando and 70 milessouthwest of Daytona Beach. The City is intersected by State Road 44, U.S. Highway 27, U.S. Highway441 and Florida’s Turnpike with Interstate 75 close by.

The City’s Library on Main Street in the downtown area is a two-story building of almost 42,000 sq. � .featuring community mee� ng rooms, a Technology Lab, and an outdoor amphitheater forperformances and events.

The City also takes pride in preserving its rich heritage through the Leesburg Historical Museum andMote Morris House, which is on the Na� onal Register of Historic Places and o� ers a � ne example ofVictorian architecture.

The City is known for its scenic beauty, relaxed lifestyle, recrea� onal facili� es, temperate climate,extensive waterways, and a� ordable housing. Waterfront living is a way of life with 1,400 beau� fullakes located in Lake County.

The City’s geographic loca� on enables it to o� er three parks that include lake access to the beau� fulHarris Chain of Lakes, one on Lake Gri� n (Herlong Park) and two on Lake Harris (Vene� an Gardens andSingletary Park). Vene� an Gardens o� ers a variety of recrea� onal ameni� es, including great shoreline� shing opportuni� es, as seven pedestrian bridges connect islands within this picturesque se� ng. Otherrecrea� onal ameni� es in Vene� an Gardens include outdoor volleyball courts, a community swimmingpool, Kids Korner Playground, pavilions, the Community Building, Vene� an Cove Marina and PatThomas Stadium/Buddy Lowe Field that has hosted professional baseball in the past and is the currenthome of Leesburg High School varsity baseball and the Leesburg Lightning of the Florida CollegiateSummer League. Current plans are to con� nue to upgrade and add facili� es to Vene� an Gardens tocon� nue to make the park a des� na� on for all.

The Sleepy Hollow Sports Complex includes two football/soccer � elds, two youth so� ball � elds, twoBabe Ruth Baseball � elds, four adult so� ball � elds, concessions, locker rooms, restrooms and a pavilion.Sleepy Hollow is the site of numerous tournaments and a� racts over 1,000 athle� c teams each year toLeesburg. In 2007, the United States Sports Specialty Associa� on voted the Sleepy Hollow SportsComplex their “Facility of the Year” for the State of Florida.

The Leesburg Recrea� onal Complex features two indoor regula� on basketball courts, four indoorvolleyball courts, an outdoor basketball court, playground and o� ces for the Parks and Recrea� onDepartment.

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These outstanding recrea� onal facili� es of regional impact are complemented with numerouscommunity and neighborhood parks. The Susan Street Complex includes four youth baseball � elds, oneregula� on football � eld, four tennis courts, four outdoor racquetball courts, concessions and restrooms.The Palme� o Street Complex features four tennis courts as well as 24 shu� eboard courts. Otherquality recrea� onal facili� es throughout the City include Berry Park, Fountain Lake Park, John L.Johnson Park, Leesburg’s Dog Park and the Town Square, which serves as the focal point during theSaturday Morning Market and major fes� vals hosted within the City. A hiking/biking trail systemthroughout the City is currently under construc� on and will link many of the City’s recrea� onal facili� esas well as provide con� nuity with other trail systems throughout Central Florida.

Leesburg Interna� onal Airport (LEE) is a large general avia� on airport with over 50,000 � ight opera� onsper year. The Airport has grown substan� ally in the past few years and it con� nues to grow. TheAirport provides a diversity of ac� vi� es; with its two intersec� ng runways, the Airport can support avariety of aircra� . LEE is the largest airport in Lake County.

The Airport sustains and leads economic growth and development. It is an important economic engine,and supports vital health, welfare, emergency, and safety-related services. The annual economic impactof LEE is associated with direct impacts that come from tenants/businesses located at the Airport andconstruc� on projects that are undertaken by the Airport or by on-site businesses. Indirect impacts areassociated with spending from visitors who arrive in the area via general avia� on aircra� .

Budgetary Controls

The annual budget serves as the founda� on for the City’s � nancial planning and control. Departmentheads are required to submit requests for appropria� ons to the City Manager, who uses those requestsas the star� ng point for developing a proposed budget. The City Manager is required by the CityCharter to keep the City Commission fully advised as to the � nancial condi� on and needs of the City andto submit an annual budget for its considera� on. The City Commission is required to hold publichearings on the proposed budget and to adopt a � nal budget by September 30, the close of the City’s� scal year. The appropriated budget is prepared by fund, func� on and department.

The City’s adopted budget policy establishes budgetary control (i.e., the level at which expenditurescannot exceed the appropriated amount) at the fund level. Budgets for all governmental fund types areadopted on a basis consistent with GAAP. Department heads may make transfers of appropria� onswithin a category from one division to another in their respec� ve department, and transfers ofappropria� ons between departments or categories can be approved by the City Manager. Theobjec� ve of these budgetary controls is to ensure compliance with legal provisions embodied in theannual budget adopted by the City Commission. Budget-to-actual comparisons are provided in thisreport for each individual governmental fund for which an appropriated annual budget has beenadopted. For the General Fund and major special revenue funds, these comparisons are presented asrequired supplementary informa� on. For other governmental funds with appropriated annual budgets,these comparisons are presented in the Supplemental Informa� on sec� on of this report.

Economic Condition

The informa� on presented in the � nancial statements is best understood when considered from abroader perspec� ve of the environment within which the City operates.

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Local Economy

The City, and Lake County as a whole, have transi� oned in recent decades from agricultural roots to agrowth-driven economy that is heavily centered in real estate, retail, personal services, and health care.For the last four years, Lake County’s unemployment numbers have been either equal to or slightlybelow the State of Florida and the United States, and the local unemployment � gure has decreasedmore than 5% since 2011. Housing prices have stabilized and are star� ng to slowly increase, as well asad valorem tax revenues. Vacancies in the downtown area have stabilized and are lower than levelsexperienced in the past. In spite of these improvements, given the e� ects of the prior recession andthe City's desire to maintain lower taxes for its ci� zens and customers, challenges remain in trying toprepare a balanced budget.

Although future revenues will be increasing, there is a need to address various budget items that wereeliminated or reduced during the recession.

The City’s top private sector employer is Central Florida Health Alliance (f/k/a LRMC), boas� ng a laborforce of 1,875. Other principal employers within the City include Lifestream Behavioral Center, LakePort Proper� es, Lake County School District and the City itself. Health care, educa� on, personalservices, retail and construc� on are sectors with the highest employment levels in Lake County.

The County is striving to diversify its employment base and to overcome a lack of higher-wage jobs thatare important to improve the local economy. One di� culty in a� rac� ng such employers could berelated to desired higher educated adults serving the local workforce. Typically, higher-payingemployers look for ci� es and coun� es that exceed the na� onal average of adults having highereduca� onal degrees. Educa� on should be a focal point for addi� onal improvements as U.S. CensusBureau sta� s� cs note that in Lake County only 21.5% of adults have a� ained these higher educa� onaldegrees, while the na� onal percentage of adults with such degrees is 29.8%. In the City, only 15.7%have a� ained such higher educa� onal degrees.

The City is home to Leesburg Interna� onal Airport, a regional shopping mall, two colleges and a growingmedical community. The City’s retail shopping is largely concentrated along U.S. Highways 27 and 441.

Economic challenges and diminishing property values have a signi� cant impact on the City’s taxableproperty income since the recession began in � scal year 2008. Fiscal year 2015 was the � rst year sincethe recession that there was a slight increase in the City’s taxable value; there was a slight increase inthe current year taxable value as well. The prior years’ decreases in the City’s taxable value, coupledwith property tax reform, have resulted in corresponding decreases in property tax revenues. Since� scal year 2008, the City has seen the annual property tax revenues decrease from $6.8 million to $4.9million. The taxable value is projected to increase slightly over the intermediate future, but the rate ofincrease is not an� cipated to be accelera� ng any � me soon.

The popula� on in Lake County nearly doubled from 1980 to 2000 (210,528 persons). The County nowhas more than 300,000 residents, which could double over the next 25 years and reach more than half amillion people. Growth in the City has retreated from the peak experienced in 2006. The City currentlyhas 22,000 residents.

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The Leesburg area is posi� oned at the crossroads of geographic expansion, as the re� rement marketcon� nues to push from the north and family households sustain the market segment to the south. Thisarea has embraced both market segments and, as a result, has become one of the emerging economicsubmarkets in all of Central Florida.

Long-term Financial Planning

The Core Values adopted by the City Commission will drive the long-term planning process. One of theCore Values, “Fiscal Responsibility,” shows a respect for the ci� zens whose taxes support the municipalgovernment and a commitment for the though� ul priori� za� on and careful management of � nancialresources. Also addressed in this Core Value is the recogni� on that resources are limited and that thisnecessitates fresh approaches and crea� vity in addressing current opera� ons and community needs.

The 5-year Capital Improvement Plan was developed to maximize the “pay as you go approach” whilerecognizing the bene� t of � nancing. U� lity improvements and replacements will be scheduled andintegrated into the street paving work plan. The plan includes a detailed explana� on regardingdevelopment of revenue projec� ons and assump� ons regarding capital needs. Due to limitedresources, capital spending is limited to that which is absolutely necessary. The major sources offunding include grants, remaining bond proceeds and renewal and replacement funds.

In the past, the City typically extended services beyond the current available infrastructure based on acalcula� on to recoup the ini� al investment over a 5- to 7-year period.

Addi� onal long-range planning for the following departments is listed below:

Information and Technology (IT) – The IT Department is an important part of the City’sopera� ons; thus, long-term � nancial planning includes preparing to replace computers as theybecome obsolete. All computer equipment is owned by the IT Department and leased to theother City departments, based on a � ve-year payback period. IT is ac� vely involved withupgrading business technology as � nancial resources become available.

Electric – The department consistently evaluates the costs of outsourcing speci� c ac� vi� es. In� scal year 2015, the Department started a major expansion project into the Fruitland Park Area,which accelerated in the current � scal year. The Villages will be adding 2,400 homes to the Cityof Fruitland Park in the next three years. The project will cost approximately $7.5 million, whichwas primarily funded by The Villages. There is a plan to convert certain overhead u� lity lineswithin the City to underground in 30 years to avoid future safety code compliance issuesassociated with poles, weather related damage and to provide other savings. In addi� on, arevision to the 5-year Capital Improvement Plan is underway which will iden� fy systemreplacements, upgrades, and improvements necessary to maintain a state-of-the-art systemwell into the future.

Gas – The City is a member of Florida Gas U� lity (FGU), which is made up of natural gas u� li� eswith a common goal of acquiring natural gas in bulk to reduce overall price to customers. Priorto 2006, the department followed a guideline of extending service to new customers based on aseven-year calculated return on ini� al investment. Since April of 2006, natural gas is beingrequired in all new subdivisions within the city limits, with the cost of infrastructure to be borneby the developer. Addi� onally, the City has contracted with Sabal Trail Natural Gas pipeline toprovide a southern connec� on for future expansion of the gas system.

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Water & Wastewater – Future u� lity expansion will be based on the U� lity Master Plan andassessed as development requires u� lity expansion. At the present � me, there is no fundingsource in water or wastewater for future u� lity expansion. The water u� lity is looking intolong-term solu� ons for increased water consump� on driven by popula� on growth. The Floridaaquifer has limited resources and is not expected to keep pace with development. The CentralFlorida Water Ini� a� ve and other similar e� orts will take a leading role in developing futurewater use policies.

Communications – The u� lity has expanded their business marke� ng to customers for � berop� c cable and Internet services. Because of expanded Internet rates, and the o� ering ofbroadband communica� ons services, the City con� nues to extend � ber op� c connec� ons tocustomers.

Solid Waste – The Solid Waste Division recently executed a long term disposal agreement withCovanta Lake II, Inc., a waste-to-energy facility that produces electricity by burning municipalsolid waste. The 5 year agreement includes an op� on to extend the contract for threeaddi� onal 5 year terms. The nego� ated disposal fee is considerably less than the fee recentlypaid to Lake County and represents a signi� cant savings in opera� ng expenses for the dura� onof the contract. The u� lity will con� nue to replace semi-automated residen� al side loadingtrucks with larger, fully automated trucks.

Fleet Maintenance – All City vehicles are owned by Fleet Services, which is responsible forrepairs, vehicle bid speci� ca� ons and purchases. A lease fee, based on useful life, is charged tothe user department. Fleet Services also maintains the City’s two fuel sites. The City maintainsa vehicle replacement plan for all City-owned vehicles and updates it annually. Planning forfuture vehicle purchases is the joint responsibility of Fleet Services and the leasing department.

Awards and Acknowledgements

The Government Finance O� cers Associa� on of the United States and Canada (GFOA) awarded aCer� � cate of Achievement for Excellence in Financial Repor� ng to the City of Leesburg for itscomprehensive annual � nancial report for the � scal year ended September 30, 2015. This is thetwenty-sixth consecu� ve year (� scal years ended 1990-2015) that the City has achieved this pres� giousaward. In order to be awarded a Cer� � cate of Achievement, a governmental unit must publish an easilyreadable and e� ciently organized comprehensive annual � nancial report. This report must sa� sfy bothgenerally accepted accoun� ng principles and applicable legal requirements.

A Cer� � cate of Achievement is valid for a period of one year only. We believe our currentcomprehensive annual � nancial report con� nues to meet the Cer� � cate of Achievement Program’srequirements, and we are submi� ng it to the GFOA to determine its eligibility for another cer� � cate.

In addi� on, the City of Leesburg also received the GFOA’s Dis� nguished Budget Presenta� on Award forits annual budget document for � scal year 2015-16. This was the 18th consecu� ve year the Cityreceived this award. In order to qualify for the Dis� nguished Budget Presenta� on Award, the City’sbudget document was judged to be pro� cient in several categories, including as a policy document, as a� nancial document, as an opera� ons guide, and as a communica� ons device.

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The prepara� on of this report on a � mely basis was made possible through the e� cient, dedicated andprofessional e� orts of the en� re sta� of the Finance Department. The signi� cant amount of year-endclosing procedures required prior to the audit could not have been accomplished without the personaland professional dedica� on of the members of the Finance Department. Other City departments,although not extensively involved in year-end audit ac� vi� es, contributed signi� cantly by ensuring theaccuracy and integrity of accoun� ng informa� on compiled throughout the year. Credit must also begiven to the Mayor and Commissioners for their unfailing support for maintaining the highest standardsof professionalism in the management of the City’s � nances. We believe that this report clearlyillustrates the � nancial posi� on of the City of Leesburg and wish to thank you for your support andcommitment to maintaining the � nancial integrity of the City.

Respec� ully submi� ed,

Alfred (Al) Minner James (Jim) WilliamsCity Manager Finance Director

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CITY OF LEESBURG, FLORIDAPRINCIPAL CITY OFFICIALS

SEPTEMBER 30, 2016

ELECTED OFFICIALS

Jay Hurley Mayor

Robert Bone Mayor, Pro-Tem

Elise Dennison Commissioner

John Chris� an Commissioner

Dan Robuck Commissioner

APPOINTED OFFICIALS

Al Minner City Manager

Fred Morrison / McLin & Burnsed, P.A. City A� orney

EXECUTIVE STAFF

Michael Rankin Deputy City Manager

William Spinelli Finance Director

Andi Purvis City Clerk

Dann Herrin Human Resources Director

Tino Anthony Informa� on Technologies Director

Robert Hicks Police Chief

David Johnson Fire Chief

Lucy Gangone Library Director

Travis Rima Recrea� on Director

Patrick Foster Electric Director

Jack Rogers, Jr. Gas Director

D.C. Maudlin Public Works Director

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13

FINANCIAL SECTION

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INDEPENDENT AUDITOR’S REPORT The Honorable Mayor and

Members of the City Commission City of Leesburg, Florida Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Leesburg, Florida (the “City”) as of and for the fiscal year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

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 from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of September 30, 2016, 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.

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The Honorable Mayor and Members of the City Commission

City of Leesburg, Florida

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and the required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, the supplemental information section, the statistical section, and the debt disclosure section, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The supplemental information section is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

The introductory section, statistical section, and debt disclosure section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated March 3, 2017, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. MOORE STEPHENS LOVELACE, P.A. Certified Public Accountants Orlando, Florida March 3, 2017

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CITY OF LEESBURG, FLORIDAMANAGEMENT’S DISCUSSION AND ANALYSIS

SEPTEMBER 30, 2016

The City of Leesburg (the City), Florida’s Management’s Discussion and Analysis presents an overview ofthe City’s � nancial ac� vi� es for the � scal year ended September 30, 2016. Please read it in conjunc� onwith the le� er of transmi� al and the � nancial statements, as listed in the Table of Contents.

Financial Highlights

· The assets of the City exceed liabili� es at the close of � scal year 2016 by $244.2 million (netposi� on). Of this amount, $58.3 million (unrestricted net posi� on) may be used to meet thegovernment’s ongoing obliga� ons to ci� zens and creditors.

· During � scal year 2016, the City adopted GASB Statement No. 72, Fair Value Measurement andApplication, and GASB Statement No. 79, Certain External Investment Pools and PoolParticipants. The primary result was increased disclosure regarding these two items in Note 4 -Deposits and Investments. No � nancial statement amounts were required to be restated orreclassi� ed as a result of these two new pronouncements.

· The City’s total net posi� on increased $13.0 million, or 5.6%. Net posi� on for GovernmentalAc� vi� es increased $2.9 million or 9.0%, while Business-Type Ac� vi� es increased $10.1 millionor 5.1%. The increase in the Governmental Ac� vi� es is due primarily to a newly-assessed � reassessment fee, increased permi� ng, and increased taxes and revenues in general due to animproving economy. The increase in the Business-Type Ac� vi� es is due primarily to a $7.7million extraordinary gain on the sale of the City's interest in the decommissioned CR-3 nuclearplant (see Note 19), as well as increased customer charges for the City's various services, andincreased investment income.

· As of September 30, 2016, the City’s governmental funds reported combined ending fundbalance of $29.9 million, an increase of $5.2 million in comparison with the reported amount of$24.7 million in the prior year.

· On September 30, 2016, unassigned fund balance for the General Fund was $9.9 million, or 36%of total General Fund expenditures and transfers out of $28.0 million.

· Governmental Funds’ fund balance increased $5.2 million, which represents an improvementover the prior year net increase of $2.4 million. The increase is mainly a� ributable to the new� re assessment fee, increased investment income, and a $2.4 million transfer from the Gas Fundto the Capital Projects fund to primarily fund City improvement and beau� � ca� on projects.

· The Internal Service Funds' change in net posi� on decreased $(963) thousand. Internal servicefunds are considered governmental ac� vi� es on the City-wide statements, but are included withthe enterprise funds on the individual funds' statements. The primary reason for the decreasewas increased claims expense in both the General Employees' Health Insurance and theWorkers' Compensa� on Insurance funds.

· The total Enterprise Funds' change in net posi� on increased $10.1 million from the previousyear, for the reasons noted for the increase in Business-Type Ac� vi� es above.

· The City’s total � nanced debt as of September 30, 2016, decreased $(12.2) million from $129.8million to $117.6 million. New debt was issued in 2016 to bene� t from lower interest rates. Along with recurring debt repayments, the Electric Fund issued $19.29 million in bonds todefease the 2007A bonds and refund the 2014 note (along with addi� onal City funds), and alsoissued a $8.318 million note to refund the 2013 note. The U� li� es funds issued $18.115 millionin bonds to defease most of the 2007A bonds.

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SEPTEMBER 30, 2016

Overview of the Financial Statements

This Management’s Discussion and Analysis is intended to serve as an introduc� on to the City’s basic� nancial statements. The City’s basic � nancial statements provide informa� on on both the City as awhole (government-wide) and on the major individual funds. Both perspec� ves (government-wide andfund level) allow the user to address relevant ques� ons, broaden a basis for comparison and enhancethe City’s accountability. The City’s basic � nancial statements are comprised of three components: 1)City-wide � nancial statements; 2) fund � nancial statements; and 3) notes to the � nancial statementsthat explain informa� on in the � nancial statements and provide more detailed data.

The statements are followed by a sec� on of Required Supplementary Informa� on that further explainsand supports the informa� on in the � nancial statements.

This report also contains other Supplemental Informa� on in addi� on to the basic � nancial statementsthat provides detail about the City’s non-major governmental funds, non major enterprise funds, andinternal service funds, each of which are added together and presented in single columns in the basic� nancial statements. The required parts of this annual report are arranged and relate to one another asshown in the following graphical representa� on:

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SEPTEMBER 30, 2016

City-wide Financial Statements

The government-wide � nancial statements are the Statement of Net Posi� on and the Statement ofAc� vi� es. These statements are designed to provide readers with a broad overview of the City’s� nances, in a manner similar to a private sector business. Emphasis is placed on the net posi� on ofgovernmental ac� vi� es and business-type ac� vi� es, and the change in net posi� on. Governmentalac� vi� es are principally supported by taxes and intergovernmental revenues. Governmental ac� vi� esinclude most of the City’s basic services, including police, � re, public works, parks and recrea� on, library,and general administra� on. Business-type ac� vi� es are intended to recover all or a signi� cant por� on oftheir costs through user fees and charges. The City’s water system, sewer system, electric system,communica� ons system, stormwater system, gas system, solid waste system opera� ons and airportopera� ons are reported as business-type ac� vi� es.

The City-wide � nancial statements include not only the City itself, but also the Greater LeesburgCommunity Redevelopment Agency, Carver Heights/Montclair Area Community Redevelopment Agency,and the U.S. Highway 441 & 27 Community Redevelopment Agency (all three “CRAs”). The CRAs, thoughlegally separate, are reported as part of the primary government as blended component units due to theCity Commission serving as each of the CRA's governing boards.

· The Statement of Net Position presents informa� on on all of the City’s assets and deferredou� lows, less liabili� es and deferred in� ows, with the di� erence reported as net posi� on. Over� me, increases or decreases in net posi� on may serve as a useful indicator of whether the� nancial posi� on of the City is improving or deteriora� ng.

· The Statement of Activities presents informa� on showing how the government’s net posi� onchanged during � scal year 2016. All changes in net posi� on are reported as soon as the occasionarises, regardless of the � ming of related cash � ows. Thus, revenues and expenses are reportedfor some items that result in cash � ows in future � scal periods (e.g., uncollected taxes andunused vaca� on leave when earned).

Both of these � nancial statements dis� nguish func� ons of the City that are principally supported bytaxes and intergovernmental revenues (governmental ac� vi� es) from other func� ons that are intendedto recover all or a signi� cant por� on of their costs through user fees and charges (business-typeac� vi� es).

The Internal Service Funds, namely health insurance, workers’ compensa� on, risk management, and� eet maintenance, are recorded as governmental ac� vi� es on the en� ty-wide statements, butpresented with the proprietary funds in the fund-level statements.

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SEPTEMBER 30, 2016

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have beensegregated for speci� c ac� vi� es or objec� ves. The fund � nancial statements provide detailedinforma� on about the City’s major funds - not the City as a whole. Fund accoun� ng helps to ensure anddemonstrate compliance with � nance-related legal requirements. Based on restric� ons on the use ofmonies, the City established mul� ple funds that account for various services provided to residents andbusinesses. These fund � nancial statements focus on the City’s most signi� cant funds: governmental,proprietary, and � duciary.

Governmental Funds

Governmental funds are used to account for essen� ally the same func� ons reported as governmentalac� vi� es in the City-wide � nancial statements. However, unlike the City-wide � nancial statements,governmental fund � nancial statements focus on near-term in� ows and ou� lows of spendableresources, as well as on balances of spendable resources available at the end of the � scal year. Suchinforma� on may be useful in evalua� ng a government’s near-term � nancing requirements.

Because the focus of governmental funds is narrower than that of the City-wide � nancial statements, itis useful to compare the informa� on presented for governmental funds with similar informa� onpresented for governmental ac� vi� es in the City-wide � nancial statements. By doing so, readers maybe� er understand the long-term impact of the government’s near-term � nancing decisions. Both thegovernmental fund balance sheet and the governmental fund statement of revenues, expenditures, andchanges in fund balances provide reconcilia� ons to facilitate this comparison between governmentalfunds and governmental ac� vi� es.

The City maintains twelve individual governmental funds. Separate informa� on for the General Fund,Capital Projects Fund, and the Community Redevelopment Agency Fund, which are considered to bemajor funds, is presented in the Governmental Funds’ Balance Sheet and in the Governmental Funds’Statement of Revenues, Expenditures, and Changes in Fund Balances. Data from the other ninegovernmental funds are combined into a single, aggregated presenta� on. Individual fund data for eachof these non-major governmental funds is provided in the form of combining statements in theSupplemental Informa� on sec� on of this report.

Annual appropriated budgets are adopted for the governmental funds. Budgetary comparisonstatements and/or schedules are provided for these funds to demonstrate budgetary compliance.

Proprietary Funds

The City maintains two di� erent types of proprietary funds: enterprise and internal service funds. Enterprise funds are used to report the same func� ons presented as business-type ac� vi� es in theCity-wide � nancial statements. The City uses enterprise funds to account for its electric, gas, water andreuse water, wastewater, airport, stormwater, solid waste, and communica� ons (Internet and � berop� c) opera� ons. Internal service funds are an accoun� ng device used to accumulate and allocate costsinternally among the City’s various func� ons. The City uses internal service funds to account for itsself-insurance health care, workers’ compensa� on, risk management, and � eet maintenance programs. Because these services predominantly bene� t governmental rather than business-type func� ons, theyhave been included within governmental ac� vi� es in the City-wide � nancial statements.

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SEPTEMBER 30, 2016

Proprietary funds provide the same type of informa� on as the City-wide � nancial statements, only inmore detail. The proprietary fund � nancial statements provide separate informa� on for Electric U� lity,Gas U� lity, Water U� lity, Wastewater U� lity and Airport enterprise funds, which are considered to bemajor funds of the City. The remaining three non-major enterprise funds are combined into a singlefund and are aggregated into a single presenta� on. Individual fund data for the non-major enterprisefunds and the internal service funds is provided in the form of combining statements in theSupplemental Informa� on sec� on of this report.

Fiduciary Funds

Fiduciary funds are used to account for resources held for the bene� t of par� es outside the government.Fiduciary funds are not re� ected in the City-wide � nancial statements because the resources of thosefunds are not available to support the City’s own programs. The accoun� ng used for � duciary funds issimilar to proprietary funds. The � duciary funds include pension trust funds for police, � re, and generalemployees.

Notes to the Financial Statements

The notes provide addi� onal informa� on that is essen� al to a full understanding of the data provided inthe City-wide and fund � nancial statements, including the City’s progress in funding its obliga� ons toprovide pension bene� ts and other postemployment bene� ts (OPEB) to its employees.

Other Information

In addi� on to the basic � nancial statements and accompanying notes, required supplementaryinforma� on is included which presents budgetary comparison schedules for the City’s General Fund,major special revenue fund, as well as historical trend informa� on for pension trust funds and the City’sOPEB plan.

The combining statements and budgetary comparison schedules referred to earlier, in connec� on withnon-major governmental and internal service funds, are presented in the Supplemental Informa� onsec� on of this report.

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SEPTEMBER 30, 2016

City-wide Financial Analysis

Statement of Net Position

As noted earlier, over � me net posi� on may serve as a useful indicator of a government’s � nancialposi� on. In the case of the City, assets and deferred ou� lows exceeded liabili� es and deferred in� owsby $244.2 million at the close of the � scal year ended September 30, 2016.

At the end of � scal year 2016, the City is able to report posi� ve balances in all three categories of netposi� on for governmental and business-type ac� vi� es. The following table re� ects the condensedStatement of Net Posi� on for the current year as compared to the prior year:

Net Position

Governmental Activities Business-Type Activities Total 2016 2015 2016 2015 2016 2015

AssetsCurrent and Other Assets $ 41,666,535 $ 37,724,773 $ 99,943,457 $ 108,631,313 $ 141,609,992 $ 146,356,086 Capital Assets (net) 51,270,800 51,308,644 227,395,842 225,914,700 278,666,642 277,223,344

Total Assets 92,937,335 89,033,417 327,339,299 334,546,013 420,276,634 423,579,430 Deferred Outflows of Resources 4,531,501 4,315,348 1,958,198 2,443,113 6,489,699 6,758,461

LiabilitiesCurrent and Other Liabili� es 8,701,891 7,403,117 26,636,538 32,481,125 35,338,429 39,884,242 Long-Term Liabili� es 52,096,349 52,014,516 93,269,557 104,911,649 145,365,906 156,926,165

Total Liabilities 60,798,240 59,417,633 119,906,095 137,392,774 180,704,335 196,810,407 Deferred Inflows of Resources 1,655,221 1,814,502 212,667 486,792 1,867,888 2,301,294

Net PositionNet Investment in Capital Assets 22,304,328 20,864,865 156,110,922 148,453,634 178,415,250 169,318,499 Restricted 7,253,410 6,117,848 215,183 425,869 7,468,593 6,543,717 Unrestricted 5,457,637 5,133,917 52,852,630 50,230,057 58,310,267 55,363,974

Total Net Position $ 35,015,375 $ 32,116,630 $ 209,178,735 $ 199,109,560 $ 244,194,110 $ 231,226,190

The largest por� on of the City’s net posi� on is re� ected in the investment in capital assets (e.g., land,buildings, and equipment) less any related outstanding debt used to acquire those assets. Netinvestment in capital assets totals $178.4 million, or 42% of all assets, which total $420.3 million. TheCity uses capital assets to provide services to ci� zens; consequently, these assets are not available forfuture spending. Although the City’s investment in its capital assets is reported net of related debt, itshould be noted that the resources needed to repay this debt must be provided from other sources,since the capital assets cannot be used to liquidate the debt.

A por� on of the City’s net posi� on, $7.5 million, or 3.1% of total net posi� on, represents resources thatare subject to external restric� on on how they may be used. The balance of unrestricted net posi� ontotaling $58.3 million, or 23.9% of the total net posi� on, may be used to meet the City’s ongoingobliga� ons to ci� zens and creditors, and provide funding for various projects.

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SEPTEMBER 30, 2016

Statement of Activities

The following table re� ects the condensed Statement of Ac� vi� es for the current year as compared tothe prior year.

Changes in Net Position

Governmental Activities Business-Type Activities Total2016 2015 2016 2015 2016 2015

RevenuesProgram Revenues Charges for Services $ 3,993,394 $ 2,832,656 $ 92,563,401 $ 91,894,164 $ 96,556,795 $ 94,726,820 Opera� ng Grants and Contribu� ons 201,225 449,269 - - 201,225 449,269 Capital Grants and Contribu� ons 559,279 425,396 2,046,797 1,069,990 2,606,076 1,495,386 General Revenues Taxes Property Taxes 4,977,437 4,712,444 - - 4,977,437 4,712,444 Sales Taxes 1,982,521 1,891,707 - - 1,982,521 1,891,707 U� lity Service Taxes 3,640,420 3,404,080 - - 3,640,420 3,404,080 Communica� on Service Taxes 1,037,210 1,014,467 - - 1,037,210 1,014,467 Other Taxes 901,223 1,029,655 - - 901,223 1,029,655 State-Shared Revenues, Unrestricted 2,045,318 1,955,382 - - 2,045,318 1,955,382 County-Shared Revenues, Unrestricted 422,902 420,008 - - 422,902 420,008 Investment Income 552,507 246,563 1,671,744 785,893 2,224,251 1,032,456 Miscellaneous 95,650 111,601 34,595 131,805 130,245 243,406

Total Revenues 20,409,086 18,493,228 96,316,537 93,881,852 116,725,623 112,375,080

Expenses General Government 4,332,531 3,699,829 - - 4,332,531 3,699,829 Public Safety 15,963,879 13,774,093 - - 15,963,879 13,774,093 Physical Environment 158,565 145,811 - - 158,565 145,811 Transporta� on 2,494,645 2,447,892 - - 2,494,645 2,447,892 Economic Environment 704,682 665,364 - - 704,682 665,364 Human Services 51,380 56,147 - - 51,380 56,147 Culture/Recrea� on 4,165,256 3,724,975 - - 4,165,256 3,724,975 Interest on Long-Term Debt 2,295,754 1,245,289 - - 2,295,754 1,245,289 Electric - - 53,842,698 52,304,667 53,842,698 52,304,667 Gas - - 4,797,668 5,127,380 4,797,668 5,127,380 Water - - 6,773,513 5,973,909 6,773,513 5,973,909 Wastewater - - 8,194,810 8,436,457 8,194,810 8,436,457 Airport - - 2,368,149 1,997,024 2,368,149 1,997,024 Stormwater - - 911,432 847,931 911,432 847,931 Solid Waste - - 2,863,103 2,724,326 2,863,103 2,724,326 Communica� ons - - 1,567,038 1,476,913 1,567,038 1,476,913

Total Expenses 30,166,692 25,759,400 81,318,411 78,888,607 111,485,103 104,648,007

Changes in Net Position Before Extraordinary Gains and Transfers (9,757,606) (7,266,172) 14,998,126 14,993,245 5,240,520 7,727,073 Extraordinary Gain - Note 19 - - 7,727,400 - 7,727,400 - Transfers 12,656,351 (15,323,267) (12,656,351) 15,323,267 - - Change in Net Position 2,898,745 (22,589,439) 10,069,175 30,316,512 12,967,920 7,727,073 Restatement - (5,919,550) - (2,640,660) - (8,560,210)Net Position - Beginning 32,116,630 60,625,619 199,109,560 171,433,708 231,226,190 232,059,327 Net Position - Ending $ 35,015,375 $ 32,116,630 $ 209,178,735 $ 199,109,560 $ 244,194,110 $ 231,226,190

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SEPTEMBER 30, 2016

Governmental Activities

Governmental ac� vi� es for the current � scal year increased the City’s net posi� on by $2.9 million,compared to a decrease of $(22.6) million in the prior year. The prior year's transfer of $25.7 million ingeneral government assets to create the Airport Fund as a business-type fund is responsible for thedecrease; without the transfer, governmental ac� vi� es would have increased $3.1 million in the prioryear. Overall, program revenues increased $1.0 million. Revenue increases in charges for services of$1.2 million, primarily due to a new � re assessment; opera� ng grants and contribu� ons decreased$(248) thousand, while capital grants and contribu� ons increased $134 thousand. Overall expensesincreased by $4.4 million, a� ributed to increased costs for employee health insurance and workers'compensa� on insurance, as well as actuarially-determined employee pension costs. Revenue fromproperty taxes remained stable.

The expenses and program revenues depicted in the following bar graph are from the Statement ofAc� vi� es. Please note that expenses precede revenues as governments seek to iden� fy the needs oftheir ci� zens and then raise the resources needed to meet those needs. The excess of expenses overprogram revenues are then funded by the remaining general revenues of the government.

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SEPTEMBER 30, 2016

The pie chart depic� ng revenues by source for governmental ac� vi� es re� ects the percentage ofindividual revenue sources to total revenue sources for governmental ac� vi� es.

Ac� vi� es of the City’s four internal service funds are considered governmental rather than business-typeac� vi� es. The net posi� on of the four funds decreased by $(963) thousand. The City’s general employeehealth insurance fund net posi� on decreased by $(774) thousand due to an increase in claims expense of$547 thousand. However, the City con� nues to experience cost savings resul� ng from increased use ofthe City onsite wellness center, for which there is no cost to covered employees or dependents for visits,generic drugs dispensed from the center’s formulary, and X-ray and MRI services performed by athird-party imaging center. The Workers’ Compensa� on fund net posi� on decreased by $(638)thousand, due to an increase in claims expense of $896 thousand. The City also has a Risk ManagementFund, which charges the various departments an insurance fee for all costs related to General Liability,Excess Liability, Property/Casualty, Auto Physical Damage, Public O� cial and Employment Prac� cesLiability. The Risk Management Fund charges City departments a fee based on factors such as number ofvehicles, value of assets, and opera� ng budget. The Fleet Maintenance fund tracks ac� vi� es associatedwith providing vehicles and equipment services throughout the City’s opera� ons. Net opera� ng loss forthe Fleet Maintenance Fund was $(77) thousand, which is a decrease of $(78) thousand from theprevious year. Combined opera� ng expenses of all internal service funds increased by $1.7 million.

Business-type Activities

The City has several business-type ac� vi� es, which are accounted for much like commercial en� � es. The City has separate business-type funds for electric, gas, water and reuse water, wastewater, airport,stormwater, solid waste, and communica� ons (Internet and � ber op� c) opera� ons. Business-typeac� vi� es di� er from governmental-type ac� vi� es in that charges for services are designed speci� cally torecover the cost of providing those services, including capital costs, such as deprecia� on or debt service. Business-type ac� vi� es primarily generate revenue as charges to users of the services of the variousac� vi� es.

Business-type ac� vi� es for the current � scal year increased the City’s net posi� on by $10.1 million from$199.1 million to $209.2 million. Net opera� ng and nonopera� ng revenues of $13.0 million (a decreaseof $(1.0) million from prior year) were o� set primarily by transfers to the governmental-type funds of$(12.7) million.

The Electric fund experienced a one-� me extraordinary gain of $7.7 million. This was due to thedecommissioning and sale of the Crystal River 3 Nuclear Power Plant, of which the City had anownership interest. More informa� on on this item is located at Note 19 in the � nancial statements.

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SEPTEMBER 30, 2016

Financial Analysis of the City’s Funds

As noted earlier, the City uses fund accoun� ng to ensure and demonstrate compliance with� nance-related legal requirements.

Governmental Funds

The focus of the City’s governmental funds is to provide informa� on on near-term in� ows, ou� lows, andbalances of spendable resources. Such informa� on is useful in assessing the City’s � nancingrequirements. In par� cular, unassigned fund balance may serve as a useful measure of a government’snet resources available for spending at the end of the � scal year.

As of the end of � scal year 2016, the City’s governmental funds reported combined ending fundbalances of $29.9 million, an increase of $5.2 million from the prior year. Unassigned fund balance ofthe governmental funds decreased $(2.7) million to $9.9 million, which is available for spending at theCity’s discre� on. The primary reason for the decrease in unassigned fund balance, while total fundbalance increased, is due to an increase in restric� ons and assignments of fund balance of $7.2 millionfor capital projects. The remainder of fund balance is classi� ed as nonspendable, restricted, commi� ed,or assigned to indicate that it is not available for new spending because it has already been commi� edfor other uses.

The General Fund is the primary general government opera� ng fund of the City. At the end of � scal year2016, the fund balance of the General Fund was $12.7 million. This fund balance is comprised ofnon-spendable funds totaling $77 thousand, restricted funds of $1.5 million, commi� ed funds of $4thousand, assigned funds of $1.3 million, and unassigned funds of $9.9 million. This unassigned balanceis a decrease of $(2.8) million from the previous year, primarily due to restric� ons and assignments offund balance for capital projects, as well as transfers to other funds, most of which was to the CapitalProjects Fund.

The Greater Leesburg CRA experienced a decrease of $(1.1) million in expenditures, due to the prior yearcomple� on of the Main Street Improvement Project, while revenues decreased $(146) thousand due to$103 thousand in contribu� ons received in the prior year that were not recurring. The CarverHeights/Montclair CRA revenues decreased by $(236) thousand due to reduced receipts from anongoing Federal CDBG grant, while expenditures decreased by $(46) thousand due to reduced capitaloutlay spending. The U.S. Hwy 441 & 27 CRA experienced a year-to-year $4 thousand increase inrevenues, while expenditures increased $95 thousand. These ac� vi� es in the three CRAs combined toresult in a reduc� on of fund balance of $(971) thousand.

The fund balance for the Capital Projects Fund increased $6.6 million due to transfers in for signi� cantcapital improvements, primarily Vene� an Gardens. Expenditures of $1.2 million were more than o� setby corresponding interfund transfers.

30


SEPTEMBER 30, 2016

Proprietary Funds

The City’s proprietary funds provide the same type of informa� on found in the government-wide� nancial statements, but in more detail. Unrestricted net posi� on for Business-type Ac� vi� es increased$2.6 million, or 5.2%.

Unrestricted Net Position

Fund 2016 2015 ChangeElectric $ 17,863,052 $ 16,139,958 $ 1,723,094 Gas 5,753,026 8,172,535 (2,419,509)Water 7,998,976 8,019,849 (20,873)Wastewater 12,433,327 10,827,333 1,605,994 Airport 1,225,637 859,546 366,091 Stormwater 3,452,885 2,901,764 551,121 Solid Waste 2,518,117 1,945,955 572,162 Communica� ons 1,607,610 1,363,117 244,493 Total $ 52,852,630 $ 50,230,057 $ 2,622,573

The $1.7 million increase in unrestricted net posi� on in the Electric Fund is due to an increase inopera� ng revenue and interest income, and a decrease in transfers. The Gas Fund's unrestricted netposi� on decreased $(2.4) million due to transfers to other funds for City projects; the Gas Fund'sopera� ng income was actually $1.7 million. The unrestricted net posi� on for the Wastewater Fundincreased $1.6 million, a result of opera� ng income of $3.4 million.

General Fund Budgetary Highlights

The � nal General Fund expenditures budget of $22.2 million is a decrease over the original budget of$22.4 million.

Actual revenues and expenditures varied from revised budget es� mates in some areas. Tax revenuesexceeded expecta� ons by $610 thousand, primarily as a result of collec� ng current and delinquent advalorem taxes in excess of budget by $150 thousand, and electric tax revenues exceeding budget by$316 thousand. Licenses, permits and assessments revenues exceeded budget by $312 thousand,mostly due to revenues from the new � re assessment fee exceeding budget by $107 thousand, andelectric permits and fees exceeding budget by $101 thousand due to increased building and economicac� vity. Charges for services were below expecta� ons by $(251) thousand stemming primarily fromreimbursement from FDOT for street light maintenance being received in the prior year. Interestincome also exceeded the budgeted amount by $250 thousand as a result of higher rates earned oninvestments and conserva� ve budge� ng by the City for this line item.

Expenditures lagged expecta� ons in most areas. The majority of savings were in General Government,Public Safety and Human Services, with variances of $138 thousand, $104 thousand, and $374 thousandrespec� vely. Saving in these and other areas stemmed from cost savings in the areas of salaries,reduced repair and maintenance costs, and reduced professional services and other third-party costs.

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SEPTEMBER 30, 2016

Capital Asset and Debt Administration

Capital Assets

Capital assets include land, buildings, improvements other than buildings, intangible assets, vehicles andequipment, infrastructure, and construc� on in progress. The infrastructure asset category includeslong-lived capital assets, typically sta� onary in nature, such as roads, sidewalks and bridges. AtSeptember 30, 2016, the City had investments in capital assets of $278.7 million (net of accumulateddeprecia� on), a net increase of $1.4 million from the previous year.

Signi� cant changes in capital assets include the following:

Capital Assets

Governmental Activities Business-Type Activities Total 2016 2015 2016 2015 2016 2015

Land $ 4,939,793 $ 4,919,748 $ 15,958,506 $ 15,958,506 $ 20,898,299 $ 20,878,254 Buildings 36,084,645 35,974,875 41,169,856 41,881,275 77,254,501 77,856,150 Improvements Other Than Buildings 8,999,338 8,898,381 256,179,759 239,587,756 265,179,097 248,486,137 Intangible Assets - - 786,424 575,834 786,424 575,834 Equipment 30,407,700 28,545,069 40,865,597 37,776,248 71,273,297 66,321,317 Infrastructure 38,275,667 38,002,237 - - 38,275,667 38,002,237 Construc� on in Progress 859,318 517,650 10,073,704 7,321,117 10,933,022 7,838,767

119,566,461 116,857,960 365,033,846 343,100,736 484,600,307 459,958,696 Less: Accumulated Deprecia� on 68,295,661 65,549,316 137,638,004 117,186,036 205,933,665 182,735,352 Capital Assets, Net $ 51,270,800 $ 51,308,644 $ 227,395,842 $ 225,914,700 $ 278,666,642 $ 277,223,344

Governmental-Type Activities - There were minimal changes in governmental ac� vi� es capital assets,with addi� ons, net of disposals, being nearly equal to deprecia� on expense for the year. Total netcapital assets declined $37.8 thousand from the prior year.

Business-Type Activities – Construc� on in Progress (CIP) increased by $2.8 million, re� ec� ng an increasein ongoing capital projects, primarily related to the rebuilding of a water treatment plant in the WaterU� lity Fund. Increases in Improvements Other Than Buildings, Equipment and AccumulatedDeprecia� on were primarily the result of reclassi� ca� ons of certain amounts between capital assets andaccumulated deprecia� on; more informa� on on this can be found in Note 6.B of the � nancialstatements.

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SEPTEMBER 30, 2016

Expenses, including those provided below, were incurred on numerous capital projects in the u� lityservice funds.

ElectricLigh� ng projects $ 344,048 Distribu� on Lines 1,203,667 Transformer Purchases 682,657 Substa� on Replacements/Upgrades 181,210 Reconductoring 854,115 Villages Infrastructure 1,517,604

GasMains, Regulators, and Equipment $ 186,502 Services 49,691 Gate Sta� ons 246,661

WaterWoodland Park Main Line Upgrade $ 147,628 Thomas Ave. Main Line Upgrade 132,020 Planta� on Water Treatment Plant Upgrade 2,896,120

WastewaterDewatering $ 209,078 Avante Line Relocate 175,129 Meadow St. Main Line 100,451 Tools and Equipment 307,685 Li� Sta� on Rehabilita� on 130,988

Communications Line Installa� on, Reloca� ons, and Equipment $ 356,876

Stormwater Infrastructure Improvements $ 360,556

Addi� onal informa� on on the City's capital assets can be found in Note 6 of the � nancial statements.

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SEPTEMBER 30, 2016

Long-term Liabilities

At the end of � scal year 2016 the City had total long-term liabili� es outstanding of $125.1 million,a� ributable to outstanding bonds, notes, compensated absences, land� ll postclosure payable, andcapital lease payable. $86.3 million represents bonds secured solely by speci� ed revenue sources, whilea bond issue of $13.9 million is secured by tax increment � nancing. $27.8 million of the bonds areapplicable to governmental ac� vi� es, and $72.4 million is for the business-type ac� vi� es. The City alsohas revenue notes totaling $22.3 million, of which $6.8 million is for governmental ac� vi� es and $15.5million is for business-type ac� vi� es.

The City’s long-term liabili� es also include an amount for the City’s net pension liability in both theen� ty-wide and proprietary Statements of Net Posi� on of $11.9 million. This amount is actuariallydetermined and represents the City’s obliga� on for future pension bene� ts to its employees based onpast service already provided. The amount is calculated net of any assets available to provide for thesefuture payments. Addi� onal informa� on on the City’s net pension liability can be found in Note 12 ofthe notes to the � nancials.

Other postemployment bene� ts (OPEB) are considered a liability on the Statement of Net Posi� on. Thisis an unfunded obliga� on which is calculated annually by the City's actuary. The calculated liability for� scal year 2016 is $14.4 million. Addi� onal informa� on on the City's OPEB obliga� on can be found inNote 14 of the notes to the � nancial statements.

Long-Term LiabilitiesGovernmental and Business-Type Combined

9/30/2016 9/30/2015 NetBalance Balance Change

Revenue Bonds & Notes Bonds $ 100,254,584 $ 91,371,451 $ 8,883,133 Notes 22,323,400 39,301,998 (16,978,598)Total Revenue Bonds & Notes 122,577,984 130,673,449 (8,095,465)Other Liabilities Compensated Absences 2,377,451 2,419,627 (42,176) Capital Lease Payable 43,204 84,668 (41,464) CR#3 Decommissioning Cost Payable (Note 19) - 6,946,584 (6,946,584) Land� ll Postclosure Payable 127,434 189,446 (62,012) Net Pension Liability 11,934,901 9,973,520 1,961,381 Other Postemployment Bene� ts 14,365,450 13,331,877 1,033,573 Total Other Liabili� es 28,848,440 32,945,722 (4,097,282)Total Long-Term Liabilities Outstanding $ 151,426,424 $ 163,619,171 $ (12,192,747)

The City is under constant surveillance and scru� ny from Wall Street ra� ng agencies. Ra� ngs wereunchanged during � scal year 2016, except that S&P downgraded the City's Electric and U� lity debt fromA+ to A.

Ra� ng AgenciesMoody's S&P Fitch

Capital A1 N/A AA-Electric A2 A A+U� lity Aa3 A AA-

Addi� onal informa� on on the City's long term debt can be found in Note 8 of the notes to the � nancialstatements.

34


SEPTEMBER 30, 2016

Economic Factors and Next Year’s Budget

· The unemployment rate for Lake County at September 2016 was 4.8%, a decrease from a rate of5.1% a year ago. This compares to the State average rate of 5.0% and the na� onal average of 4.8%.

· The millage rate for 2016 was 4.2678 mills. This was a decrease from 4.3179 in 2015, and the � rstdecrease in millage since 2008. The City ranked 5th lowest out of the 14 ci� es in Lake County. TheCity is able to retain ad valorem rates at a minimal level due in large part from the transfers fromu� lity fund opera� ons.

· Popula� on increased slightly to 22,000 from the prior � scal year of 21,547.

· The 2017 property values are projected to improve slightly from 2016 levels, resul� ng in advalorem revenues that are expected to increase over the 2016 level. Slowly improving economiccondi� ons should lead to improving revenue sources.

· During the downturn in the economy, the property values in the U.S. Hwy 441 & 27 CRA fell belowthe base year taxable property values that was used to establish the base measuring theincremental property values. In � scal year 2016, the City was able to re-base the U.S. Hwy 441 & 27CRA. This allowed the � oor to be lowered to 2015 property values. The City was only the secondCity in the state to accomplish this. As a result, the � scal year 2017 budget includes $110,289 in advalorem revenues for the U.S. Hwy 441 & 27 CRA. This change has allowed the City to restructurethe CRA's exis� ng debt (see subsequent event Note 20 of the � nancial statements) and reduce anyGeneral Fund impact.

Other

Power supply for 2016 received through the Florida Municipal Power Agency (FMPA) and the City’sshare of the St. Lucie Nuclear Power Plant represents 73% of the Electric Fund’s annual opera� ngexpenses. In October 2015, Duke Energy, principal owner of the Crystal River 3 Nuclear Power Plant,purchased all the assets of the nuclear plant from the City. The acquisi� on included Duke Energyassuming future responsibility of the City’s por� on of associated decommissioning cost obliga� ons. Thisresulted in an extraordinary gain of $7.7 million. More informa� on on this transac� on is in Note 19 ofthe � nancial statements.

Requests for Information

This � nancial report is designed to present users with a general overview of the City’s � nances and todemonstrate the City’s accountability. If you have ques� ons concerning any of the informa� on providedin this report or need addi� onal � nancial informa� on, please contact the City’s Finance Department at501 West Meadow Street (P.O. Box 490630), Leesburg, Florida, 34749-0630, or call (352) 728-9720.

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36

CITY-WIDE FINANCIAL STATEMENTS

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38

CITY OF LEESBURG, FLORIDASTATEMENT OF NET POSITION

SEPTEMBER 30, 2016

GovernmentalActivities

Business-typeActivities Total

AssetsPooled Cash and Investments $ 33,216,994 $ 67,681,944 $ 100,898,938Restricted Assets:

Temporarily Restricted:Pooled Cash and Investments 5,704,252 12,499,253 18,203,505Cash with Fiscal Agent 1,226,876 3,753,369 4,980,245

Receivables (Net of Allowance for Uncollec� bles) 416,770 10,990,446 11,407,216Notes Receivables, Employees 20,135 - 20,135Due from Other Governments 547,977 188,432 736,409Prepaid Items 12,587 100,353 112,940Inventories 520,944 4,729,660 5,250,604Capital Assets Not Being Depreciated 5,799,111 26,032,210 31,831,321Capital Assets Being Depreciated, Net of Deprecia� on 45,471,689 201,363,632 246,835,321

Total Assets 92,937,335 327,339,299 420,276,634

Deferred Outflows of ResourcesDeferred Ou� lows on Bond Refunding 853,717 1,277,510 2,131,227Deferred Ou� lows Pension-Related 3,677,784 680,688 4,358,472

Total Deferred Outflows of Resources 4,531,501 1,958,198 6,489,699

LiabilitiesAccounts Payable 2,003,764 4,820,450 6,824,214Accrued Liabili� es 762,857 543,639 1,306,496Accrued Interest Payable 732,356 1,263,749 1,996,105Customer Advances for Construc� on - 3,707,323 3,707,323Unearned Revenue 311,389 425,897 737,286Claims Payable 1,837,676 - 1,837,676Customer Deposits 110,775 5,365,216 5,475,991Rate Stabiliza� on Credit - 7,054,818 7,054,818Due to Other Governments 74,263 263,739 338,002Noncurrent Liabili� es:

Due Within One Year 2,868,811 3,191,707 6,060,518Due in More Than One Year 33,150,897 85,914,658 119,065,555Net Pension Liability 9,019,142 2,915,759 11,934,901Other Postemployment Bene� ts Liability 9,926,310 4,439,140 14,365,450

Total Liabilities 60,798,240 119,906,095 180,704,335

Deferred Inflows of ResourcesDeferred In� ows Pension-Related 1,655,221 212,667 1,867,888

Net PositionNet Investment in Capital Assets 22,304,328 156,110,922 178,415,250Restricted for:

Public Safety 186,422 - 186,422Housing Assistance Fund 309,946 - 309,946Capital Projects 2,533,960 - 2,533,960Debt Service 1,556,973 - 1,556,973Special Revenue 2,666,109 - 2,666,109Gas Depository Trust - 215,183 215,183

Unrestricted 5,457,637 52,852,630 58,310,267Total Net Position $ 35,015,375 $ 209,178,735 $ 244,194,110

The notes to the � nancial statements are an integral part of this statement.

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CITY OF LEESBURG, FLORIDASTATEMENT OF ACTVITIES

FOR THE YEAR ENDED SEPTEMBER 30, 2016

Program Revenues Net (Expense) Revenue and Change in Net PositionPrimary Government

Functions/Programs ExpensesCharges for

Services

OperatingGrants and

Contributions

Capital Grantsand

ContributionsGovernmental

ActivitiesBusiness-type

Activities TotalGovernmental Activities

General Government $ 4,332,531 $ 742,308 $ 27,475 $ - $ (3,562,748) $ - $ (3,562,748)Public Safety 15,963,879 2,487,371 25,219 469,112 (12,982,177) - (12,982,177)Physical Environment 158,565 165,014 95,378 - 101,827 - 101,827Transporta� on 2,494,645 - 11,080 - (2,483,565) - (2,483,565)Economic Environment 704,682 - - - (704,682) - (704,682)Human Services 51,380 - - - (51,380) - (51,380)Culture and Recrea� on 4,165,256 598,701 42,073 90,167 (3,434,315) - (3,434,315)Interest on Long-Term Debt 2,295,754 - - - (2,295,754) - (2,295,754)

Total Governmental Activities $ 30,166,692 $ 3,993,394 $ 201,225 $ 559,279 $ (25,412,794) $ - $ (25,412,794)Business-Type Activities

Electric U� lity 53,842,698 60,057,298 - 429,098 - 6,643,698 6,643,698Gas U� lity 4,797,668 6,173,278 - - - 1,375,610 1,375,610Water U� lity 6,773,513 7,811,086 - 313,774 - 1,351,347 1,351,347Wastewater U� lity 8,194,810 9,975,601 - 517,697 - 2,298,488 2,298,488Airport 2,368,149 1,108,456 - 718,392 - (541,301) (541,301)Stormwater System 911,432 1,480,338 - 67,836 - 636,742 636,742Solid Waste System 2,863,103 3,925,219 - - - 1,062,116 1,062,116Communica� on Services U� lity 1,567,038 2,032,125 - - - 465,087 465,087

Total Business-Type Activities 81,318,411 92,563,401 - 2,046,797 - 13,291,787 13,291,787Total Primary Government $ 111,485,103 $ 96,556,795 $ 201,225 $ 2,606,076 $ (25,412,794) $ 13,291,787 $ (12,121,007)

General Revenues:Taxes:

Property Taxes $ 4,977,437 $ - $ 4,977,437Sales Taxes 1,982,521 - 1,982,521U� lity Service Taxes 3,640,420 - 3,640,420Communica� on Services Taxes 1,037,210 - 1,037,210Other Taxes 901,223 - 901,223

State-shared Revenues, Unrestricted 2,045,318 - 2,045,318County-shared Revenues, Unrestricted 422,902 - 422,902Investment Income 552,507 1,671,744 2,224,251Miscellaneous 95,650 34,595 130,245

Extraordinary Gain - Note 19 - 7,727,400 7,727,400Transfers 12,656,351 (12,656,351) -Total General Revenues, Extraordinary Gain and Transfers 28,311,539 (3,222,612) 25,088,927Change in Net Position 2,898,745 10,069,175 12,967,920Net Position, Beginning of Year 32,116,630 199,109,560 231,226,190Net Position, End of Year $ 35,015,375 $ 209,178,735 $ 244,194,110


40

Megan

Typewritten Text

FUND FINANCIAL STATEMENTS

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42

MAJOR GOVERNMENTAL FUNDS

General Fund is the principal fund of the City and is used to account for all ac� vi� es notincluded in other funds. The General Fund accounts for the normal recurring ac� vi� es of theCity (i.e., police, � re, public works, general government, etc.). These ac� vi� es are fundedprincipally by property taxes, intergovernmental revenues, and licenses and fees.

Community Redevelopment Agency Funds consist of the Greater Leesburg CommunityRedevelopment Agency Fund, Carver Heights/Montclair Area Community RedevelopmentAgency Fund, and U.S. Highway 441/27 Community Redevelopment Agency Fund, which areincremental tax districts established pursuant to Florida Statutes and accounted for as specialrevenue funds. The funds account for the incremental increase in ad valorem tax revenuecollected within the designated community redevelopment agency areas. Revenues must beu� lized and expended in accordance with the respec� ve community redevelopment agencyplans.

Capital Projects Fund accounts for � nancial resources used for the acquisi� on or construc� onof major capital facili� es (other than those � nanced by proprietary funds and trust funds).

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44

CITY OF LEESBURG, FLORIDABALANCE SHEET

ALL GOVERNMENTAL FUNDSSEPTEMBER 30, 2016

Major Funds Other

GeneralFund

CommunityRedevelopmentAgency Funds

CapitalProjects

Fund

NonmajorGovernmental

Funds

TotalGovernmental

Funds

AssetsPooled Cash and Investments $ 13,124,950 $ 1,602,357 $ 6,709,094 $ 2,635,482 $ 24,071,883Restricted Cash 595,740 5,108,512 - - 5,704,252Cash with Fiscal Agent - 87,793 - 1,139,083 1,226,876Accounts Receivables, Net of Allowance of $91,483 254,787 - - 13,438 268,225Notes Receivable, Employees 20,135 - - - 20,135Due from Other Funds 80,151 - - - 80,151Due from Other Governments 444,796 46,048 - 57,133 547,977Prepaid Items 12,587 - - - 12,587Inventory 44,432 - - - 44,432

Total Assets $ 14,577,578 $ 6,844,710 $ 6,709,094 $ 3,845,136 $ 31,976,518

Liabilities and Fund Balances

LiabilitiesAccounts Payable $ 618,794 $ 18,284 $ 76,311 $ 4,950 $ 718,339Due to Other Funds - 69,940 - 10,211 80,151Due to Other Governments 65,081 - - 9,182 74,263Accrued Salaries 742,612 - 1,483 18,762 762,857Unearned Revenue 303,881 - 7,508 - 311,389Deposits 99,725 4,000 - 7,050 110,775

Total Liabilities 1,830,093 92,224 85,302 50,155 2,057,774

Fund BalancesNonspendable:

Prepaids 12,587 - - - 12,587Inventory 44,432 - - - 44,432Notes Receivable - Employees 20,135 - - - 20,135

Restricted for:Public Safety and Other Expenditures 186,422 - - - 186,422Housing Assistance Fund 309,946 - - - 309,946Capital Projects 977,779 5,134,971 - - 6,112,750Debt Service - 1,617,515 - 1,139,083 2,756,598Special Revenue Funds - - - 2,666,109 2,666,109

Commi� ed for:C.U.R.E. Program 4,138 - - - 4,138

Assigned for:Capital Projects 1,263,580 - 6,623,792 - 7,887,372

Unassigned (de� cit) 9,928,466 - - (10,211) 9,918,255Total Fund Balances 12,747,485 6,752,486 6,623,792 3,794,981 29,918,744

Total Liabilities and Fund Balances $ 14,577,578 $ 6,844,710 $ 6,709,094 $ 3,845,136 $ 31,976,518


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46

CITY OF LEESBURG, FLORIDARECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET POSITIONAS OF SEPTEMBER 30, 2016

Total Fund Balances of Governmental Funds $ 29,918,744

Amounts Reported for Governmental Activities in the Statement of Net Position are Different Because:

Capital assets used in governmental ac� vi� es are not � nancial resources and, therefore, are not reported in the funds:

Cost of the Assets (excluding capital assets of the Internal Service Funds included below) $ 98,554,971 Accumulated Deprecia� on (excluding Internal Service Funds) (51,412,887) 47,142,084

The internal service funds are used by management to charge the costs of health insurance and workers' compensa� on services, risk management costs and � eet opera� on costs to individual funds. The assets, deferred ou� lows, liabili� es and deferred in� ows of the internal service funds are included in governmental ac� vi� es in the statement of net posi� on. 10,568,753

Deferred Amounts on Refunding are not available to cover current liabili� es and therefore are not considered revenue in the fund level statements. 853,717

Deferred Ou� lows related to Pensions are not reported in the governmental funds but will be recognized in pension expense on a long term basis (excluding Internal Service Funds). 3,641,502

Deferred In� ows related to Pensions are not reported in the governmental funds but will be recognized in pension expense on a long term basis (excluding Internal Service Funds). (1,642,727)

Accrued interest payable is not recorded in the fund � nancial statements but is recorded in governmental ac� vi� es. (732,356)

Long-term liabili� es are not due and payable in the current period and, accordingly, are not reported in the governmental funds. Long-term liabili� es at year-end consist of:

Capital Improvement Revenue Bonds (27,760,000) Notes Payable (6,795,400) Compensated Absences (1,380,816) Capital Lease Payable (43,204) Net Other Postemployment Bene� ts (9,868,190) Net Pension Liability (excluding Internal Service Funds) (8,886,732) (54,734,342)

Total Net Position of Governmental Activities $ 35,015,375

The notes to the � nancial statements are an integral part of the � nancial statements.

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48

CITY OF LEESBURG, FLORIDASTATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCESALL GOVERNMENTAL FUNDS


Major Funds Other

GeneralFund

CommunityRedevelopmentAgency Funds

CapitalProjects

Fund

NonmajorGovernmental

Funds

TotalGovernmental

Funds

RevenuesTaxes $ 11,379,558 $ 463,621 $ - $ 695,632 $ 12,538,811Licenses, Permits and Assessments 1,480,640 - - 1,140,215 2,620,855Intergovernmental 2,383,900 95,378 - 156,205 2,635,483Charges for Services 551,697 - - 1,903 553,600Fines and Forfeitures 105,829 - - 28,793 134,622Impact Fees - - - 159,680 159,680Miscellaneous:

Interest 301,546 46,607 10,497 35,385 394,035Rental 459,108 - - - 459,108Other 115,910 47 - 165,095 281,052

Total Revenues 16,778,188 605,653 10,497 2,382,908 19,777,246

ExpendituresCurrent:

General Government 3,601,492 - - - 3,601,492Public Safety 12,532,982 - - 519,710 13,052,692Physical Environment 92,080 - - - 92,080Transporta� on 1,466,585 - - 218 1,466,803Economic Environment 227,409 241,264 - 72,905 541,578Human Services 51,380 - - - 51,380Culture and Recrea� on 3,022,899 - - - 3,022,899

Debt Service:Principal Payments - 580,598 - 1,716,464 2,297,062Interest and Fees - 711,878 - 804,093 1,515,971

Capital Outlay 316,192 42,660 1,171,025 40,754 1,570,631Total Expenditures 21,311,019 1,576,400 1,171,025 3,154,144 27,212,588

Excess (Deficiency) of Revenues Over(Under) Expenditures (4,532,831) (970,747) (1,160,528) (771,236) (7,435,342)

Other Financing Sources (Uses)Sale of Capital Assets 25,808 - - - 25,808Transfers from Other Funds 9,516,319 - 7,795,935 2,550,589 19,862,843Transfers to Other Funds (6,639,414) - - (570,705) (7,210,119)

Total Other Financing Sources (Uses) 2,902,713 - 7,795,935 1,979,884 12,678,532

Net Change in Fund Balances (1,630,118) (970,747) 6,635,407 1,208,648 5,243,190

Fund Balances, Beginning of Year 14,377,603 7,723,233 (11,615) 2,586,333 24,675,554

Fund Balances, End of Year $ 12,747,485 $ 6,752,486 $ 6,623,792 $ 3,794,981 $ 29,918,744


49


50

CITY OF LEESBURG, FLORIDARECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES OF THE GOVERNMENTAL FUNDS

TO THE STATEMENT OF ACTIVITIESFOR THE YEAR ENDED SEPTEMBER 30, 2016

Net Change in Fund Balances - Total Governmental Funds $ 5,243,190

Amounts Reported for Governmental Activities in the Statement of Activities are Different Because:

Governmental funds report capital purchases as expenditures. However, in the statement of ac� vi� es, the cost of those assets is depreciated over their es� mated useful lives and reported as deprecia� on expense. This reconciling item is the amount by which capital purchases, less net book value of disposals, exceeds deprecia� on expense:

Capital Purchases $ 1,566,558 Net Book Value of Disposals (30,385) Deprecia� on Expense (2,756,102) (1,219,929)

Repayment of bond and note principal is an expenditure in the governmental funds, but the repayment reduces long-term liabili� es in the statement of net assets. This is a list of those repayments:

Principal Repayments: Capital Improvement Revenue Bonds 740,000 Notes Payable 1,515,598 Capital Lease Payable 41,464 2,297,062

Some expenses reported in the statement of ac� vi� es do not require the use of current � nancial resources and, therefore, are not reported as expenditures in governmental funds:

Accrued Interest Payable (732,356) Compensated Absences (6,016) Change in Deferred Amount on Refunding (47,427) Pension Expense (1,038,608) Change in Other Postemployment Bene� t Liability (633,886) (2,458,293)

The Internal Service Funds are used by management to charge the costs of ac� vi� es that bene� t the en� re government. The net revenue (expense) of the internal service funds is reported with governmental ac� vi� es. (963,285)

Change in Net Position of Governmental Activities $ 2,898,745


51


52

MAJOR PROPRIETARY FUNDS

Proprietary Funds account for opera� ons that are � nanced and operated in a manner similarto private business enterprises, where the costs of providing goods or services to the generalpublic are recovered primarily through user charges; or where the City has decided thatdetermina� on of net income is appropriate for capital maintenance, public policy,management control, accountability or other purposes. Individual major proprietary funds aredescribed below.

Electric Utility Fund accounts for the purchase and distribu� on of electric services.

Gas Utility Fund accounts for the purchase and distribu� on of gas services.

Water Utility Fund accounts for costs for collec� on, treatment, and distribu� on ofwater services.

Wastewater Utility Fund accounts for costs to provide wastewater and sanitary sewerservices.

Airport Fund accounts for the costs associated with the management, construc� on,maintenance, protec� ons, control, regula� on, use, and enhancement of the City'sInterna� onal Airport.

INTERNAL SERVICE FUNDS

Internal Service Funds account for the � nancing of goods and services provided by onedepartment to other departments of the governmental unit on a cost-reimbursement basis. The City maintains four internal service funds. The internal service funds are for the paymentof employee health and medical claims, workers’ compensa� on claims, property and casualtypolicies, and lease payments for the City’s vehicles.

53


PROPRIETARY FUNDSSEPTEMBER 30, 2016

Business-type Activities - Enterprise FundsMajor Funds

ElectricUtilityFund

GasUtilityFund

WaterUtilityFund

Assets

Current Assets:Pooled Cash and Investments $ 30,442,311 $ 6,417,080 $ 8,841,202Restricted Pooled Cash and Investments:

Debt Service Account - - -Customer Deposits Account 4,595,243 537,186 491,134Villages Construc� on Project 4,596,637 - -Land� ll Escrow - - -Cash with Fiscal Agent 1,330,578 246,064 1,086,212

Receivables:Customer Accounts, Unbilled 2,745,864 210,022 367,374Customer Accounts, Billed 5,155,738 355,278 489,369(Allowance for Doub� ul Accounts) (472,943) (31,267) (61,409)

Miscellaneous Receivables - - -Due from Other Governments - - -Prepaid Items 13,806 11,306 2,650Inventory 3,958,036 312,660 238,898

Total Current Assets 52,365,270 8,058,329 11,455,430

Noncurrent Assets:Restricted Assets:

Pooled Cash and Investments:Impact Fees Account - - 464,375Bond Proceeds - 187,699 -

Depository Trust Account - 215,183 -Total Restricted Assets - 402,882 464,375

Property, Plant, and Equipment:Land 3,547,105 370,111 363,470Buildings 2,705,810 591,176 6,066,779Improvements Other Than Buildings 122,343,786 16,303,027 44,852,680Machinery and Equipment 18,401,988 1,838,002 6,280,372Less Accumulated Deprecia� on and Amor� za� on (55,163,685) (8,175,523) (22,552,515)Intangible Assets - - 748,274Construc� on in Progress 2,827,137 439,209 4,038,401

Total Property, Plant, and Equipment 94,662,141 11,366,002 39,797,461

Total Noncurrent Assets 94,662,141 11,768,884 40,261,836Total Assets 147,027,411 19,827,213 51,717,266

Deferred Outflows of ResourcesDeferred Amounts on Bond Refunding - 214,269 445,697Deferred Ou� lows-Pension Related 278,599 97,589 90,781Total Deferred Outflows of Resources 278,599 311,858 536,478


54

Business-type Activities - Enterprise FundsGovernmental

ActivitiesMajor Funds

WastewaterUtilityFund

AirportFund

NonmajorEnterprise

Funds

TotalEnterprise

Funds

InternalServiceFunds

$ 12,982,264 $ 1,287,295 $ 7,711,792 $ 67,681,944 $ 9,145,111

- - 114,293 114,293 -3,125 - 7,373 5,634,061 -

- - - 4,596,637 -- - 92,326 92,326 -

1,090,515 - - 3,753,369 -

451,378 - 336,722 4,111,360 -1,089,244 25,675 476,895 7,592,199 -

(90,154) - (57,340) (713,113) -- - - - 148,545- 120,596 67,836 188,432 -- - 72,591 100,353 -- - 220,066 4,729,660 476,512

15,526,372 1,433,566 9,042,554 97,881,521 9,770,168

1,194,679 - - 1,659,054 -- - - 187,699 -- - - 215,183 -

1,194,679 - - 2,061,936 -

6,219,584 4,698,649 759,587 15,958,506 -24,137,630 7,654,605 13,856 41,169,856 564,98829,359,013 23,772,799 19,548,454 256,179,759 148,12712,524,212 103,599 1,717,424 40,865,597 20,298,375

(30,867,609) (12,482,810) (8,395,862) (137,638,004) (16,882,774)38,150 - - 786,424 -

646,845 406,904 1,715,208 10,073,704 -42,057,825 24,153,746 15,358,667 227,395,842 4,128,716

43,252,504 24,153,746 15,358,667 229,457,778 4,128,71658,778,876 25,587,312 24,401,221 327,339,299 13,898,884

617,544 - - 1,277,510 -120,426 - 93,293 680,688 36,282737,970 - 93,293 1,958,198 36,282

(Con� nued)


55


PROPRIETARY FUNDSSEPTEMBER 30, 2016

(Concluded)


ElectricUtilityFund

GasUtilityFund

WaterUtilityFund

Liabilities

Current Liabili� es:Accounts and Retainage Payable $ 4,032,439 $ 138,335 $ 220,848Rate Stabiliza� on Credit 7,054,818 - -Due to Other Governments 245,216 16,447 -Other Accrued Expenses 148,692 196,062 45,113Claims Payable - - -Compensated Absences 230,335 50,970 96,333Unearned Revenue - 150,982 7,149

11,711,500 552,796 369,443

Current Liabili� es Payable from Restricted Assets:Customer Deposits 4,595,243 268,341 491,134Es� mated Land� ll Closure Cost Payable - - -Customer Advances for Construc� on 3,705,623 - -Accrued Interest Payable 538,578 82,517 318,019Bonds and Notes Payable - Current Por� on 792,000 163,546 768,193

Current Liabili� es Payable from Restricted Assets 9,631,444 514,404 1,577,346Total Current Liabili� es 21,342,944 1,067,200 1,946,789

Noncurrent Liabili� es:Claims Payable - - -Electric U� lity Revenue Bond 2007B 8,995,000 - -Electric U� lity Refunding Revenue Note 2016 7,931,000 - -Electric U� lity Refunding Revenue Bond 2016 19,290,000 - -Revenue Bonds Payable, Series 2007 - 48,676 278,897U� lity Revenue Refunding Note Payable 2010 - - 2,812,993U� lity Revenue Refunding Bond Payable 2013 - 3,064,316 6,374,027U� lity Revenue Refunding Bond 2016 - 2,050,618 11,749,389Capital Improvement Revenue Refunding Note 2009 - - -(Unamor� zed Discounts and Premiums) 2,040,928 372,102 1,670,114Compensated Absences 188,456 41,703 78,818Land� ll Postclosure Costs Payable - - -Other Postemployment Bene� ts 1,276,004 540,414 759,570Net Pension Liability 1,241,802 515,058 285,515

Total Noncurrent Liabili� es 40,963,190 6,632,887 24,009,323Total Liabilities 62,306,134 7,700,087 25,956,112

Deferred Inflows of ResourcesDeferred In� ows-Pension Related 82,685 29,961 38,997

Net Position

Net Investment in Capital Assets 67,054,139 6,440,814 18,259,659Restricted for:

Gas Depository Trust - 215,183 -Unrestricted 17,863,052 5,753,026 7,998,976

Total Net Position $ 84,917,191 $ 12,409,023 $ 26,258,635


56




AirportFund

NonmajorEnterprise

Funds

TotalEnterprise

Funds


$ 225,955 $ 16,094 $ 186,779 $ 4,820,450 $ 885,039- - - 7,054,818 -- - 2,076 263,739 -

92,427 4,635 56,710 543,639 12,947- - - - 1,030,626

86,895 5,174 56,283 525,990 22,15899,766 168,000 - 425,897 -

505,043 193,903 301,848 13,634,533 1,950,770

3,125 - 7,373 5,365,216 -- - 63,717 63,717 -

1,700 - - 3,707,323 -317,253 - 7,382 1,263,749 -773,261 - 105,000 2,602,000 -

1,095,339 - 183,472 13,002,005 -1,600,382 193,903 485,320 26,636,538 1,950,770

- - - - 1,194,489- - - 8,995,000 -- - - 7,931,000 -- - - 19,290,000 -

987,427 - - 1,315,000 -3,382,007 - - 6,195,000 -8,831,657 - - 18,270,000 -4,314,993 - - 18,115,000 -

- - 345,000 345,000 -881,440 - - 4,964,584 -

71,096 4,234 46,050 430,357 18,130- - 63,717 63,717 -

1,139,391 9,320 714,441 4,439,140 58,120546,322 472 326,590 2,915,759 132,410

20,154,333 14,026 1,495,798 93,269,557 1,403,14921,754,715 207,929 1,981,118 119,906,095 3,353,919

34,907 - 26,117 212,667 12,494

25,293,897 24,153,746 14,908,667 156,110,922 4,128,716

- - - 215,183 -12,433,327 1,225,637 7,578,612 52,852,630 6,440,037

$ 37,727,224 $ 25,379,383 $ 22,487,279 $ 209,178,735 $ 10,568,753


57

CITY OF LEESBURG, FLORIDASTATEMENT OF REVENUES, EXPENSES,AND CHANGES IN FUND NET POSITION

PROPRIETARY FUNDSFOR THE YEAR ENDED SEPTEMBER 30, 2016


ElectricUtilityFund

GasUtilityFund

WaterUtilityFund

Operating RevenuesCharges for Services $ 58,706,161 $ 6,033,051 $ 7,636,407Other 1,351,138 140,227 174,624

Total Operating Revenues 60,057,299 6,173,278 7,811,031

Operating ExpensesPersonal Services 3,482,742 1,315,936 1,355,879Purchased Energy 36,961,222 1,639,386 -Supplies and Materials 279,239 108,976 507,018Maintenance Costs 761,814 65,177 153,298Contracted Services 1,559,487 14,609 200,312Other Services and Charges 3,889,963 859,760 1,573,398Deprecia� on and Amor� za� on 3,947,566 435,538 1,272,081Change in Decommissioning/ Postclosure Es� mate - - -Claims Expense - - -Insurance Premiums - - -

Total Operating Expenses 50,882,033 4,439,382 5,061,986

Operating Income (Loss) 9,175,266 1,733,896 2,749,045

Nonoperating Revenues (Expenses)Investment Income 1,012,026 136,337 156,247Gain (Loss) on Sale of Assets 33,630 - -Interest Expenses (2,960,665) (358,286) (1,711,475)

Total Nonoperating Revenues (Expenses) (1,915,009) (221,949) (1,555,228)

Income (Loss) Before Contributions, Extraordinary Itemand Transfers 7,260,257 1,511,947 1,193,817

Capital Contributions, Extraordinary Item and TransfersGrants - - -Capital Contribu� ons 429,098 - 313,774Extraordinary gain - Note 19 7,727,400 - -Transfers from Other Funds - - -Transfers to Other Funds (5,980,180) (4,273,522) (916,033)

Total Capital Contributions, Extraordinary Item andTransfers 2,176,318 (4,273,522) (602,259)

Change in Net Position 9,436,575 (2,761,575) 591,558

Net Position, Beginning of Year 75,480,616 15,170,598 25,667,077

Net Position, End of Year $ 84,917,191 $ 12,409,023 $ 26,258,635


58




AirportFund

NonmajorEnterprise

Funds

TotalEnterprise

Funds


$ 10,383,014 $ 147,361 $ 7,372,711 $ 90,278,705 $ 8,305,117218,583 961,481 65,396 2,911,449 584,208

10,601,597 1,108,842 7,438,107 93,190,154 8,889,325

2,353,076 127,434 1,792,256 10,427,323 608,287- - - 38,600,608 -

237,788 10,740 250,924 1,394,685 216,110567,594 114,906 476,864 2,139,653 517,894350,166 168,047 1,229,730 3,522,351 992,983

2,096,120 187,956 1,104,084 9,711,281 58,4431,547,786 1,384,027 528,925 9,115,923 905,537

- - (62,012) (62,012) -- - - - 6,002,228- - - - 1,160,787

7,152,530 1,993,110 5,320,771 74,849,812 10,462,269

3,449,067 (884,268) 2,117,336 18,340,342 (1,572,944)

235,041 17,712 114,381 1,671,744 158,472(625,962) (375,039) (1,559) (968,930) 72,560

(1,042,280) - (19,121) (6,091,827) -(1,433,201) (357,327) 93,701 (5,389,013) 231,032

2,015,866 (1,241,595) 2,211,037 12,951,329 (1,341,912)

- 578,392 - 578,392 -517,697 140,000 67,836 1,468,405 375,000

- - - 7,727,400 -- - - - 3,627

(843,115) (3,627) (639,874) (12,656,351) -

(325,418) 714,765 (572,038) (2,882,154) 378,627

1,690,448 (526,830) 1,638,999 10,069,175 (963,285)

36,036,776 25,906,213 20,848,280 199,109,560 11,532,038

$ 37,727,224 $ 25,379,383 $ 22,487,279 $ 209,178,735 $ 10,568,753


59


CITY OF LEESBURG, FLORIDASTATEMENT OF CASH FLOWS



Electric Gas WaterUtility Utility UtilityFund Fund Fund

Cash Flows from Operating Activities Receipts from Customers and Users $ 56,358,145 $ 6,136,167 $ 7,715,130 Payments to Suppliers for Goods and Services (42,635,258) (2,723,868) (2,608,535) Cash Paid for Insurance Claims - - - Cash Paid to Employees for Services (3,265,838) (1,244,540) (1,297,164)Net Cash Provided by (Used in) Operating Activities 10,457,049 2,167,759 3,809,431

Cash Flows from Noncapital Financing Activities Transfers from Other Funds - - - Transfers to Other Funds (5,980,180) (4,273,522) (916,033) Principal Paid on Noncapital Debt (390,000) - - Net Cash Provided by (Used in) Noncapital Financing Activities (6,370,180) (4,273,522) (916,033)

Cash Flows from Capital and Related Financing Activities Interest Paid on Revenue Bonds and Customer Deposits (2,211,106) (252,568) (1,122,005) Acquisi� on and Construc� on of Capital Assets (5,151,749) (482,855) (3,313,109) Proceeds from the Disposi� on of Capital Assets - - - Issuance of Refunding Debt 29,673,225 2,299,078 13,172,987 Payment to Refunded Bonds Escrow Agent (34,430,381) (2,297,944) (13,166,487) Principal Paid on Capital Debt (862,000) (157,928) (739,252) Capital Contribu� ons 429,098 - 313,774 Return of Customer Advances (842,995) - - Extraordinary Gain - Note 19 7,846,629 - - Net Cash Provided by (Used in) Capital and Related Financing Activities (5,549,279) (892,217) (4,854,092)

Cash Flows from Investing Activities Interest Received 770,527 136,337 156,247 Net Cash Provided by (Used in) Investing Activities 770,527 136,337 156,247

Net Increase (Decrease) in Cash and Cash Equivalents (691,883) (2,861,643) (1,804,447)

Cash and Cash Equivalents, Beginning of Year 41,656,652 10,464,855 12,687,370

Cash and Cash Equivalents, End of Year $ 40,964,769 $ 7,603,212 $ 10,882,923

60




Wastewater Nonmajor Total InternalUtility Airport Enterprise Enterprise ServiceFund Fund Funds Funds Funds

aa $ 10,560,926 $ 1,101,293 $ 7,395,011 $ 89,266,672 $ 8,279,147 aa (3,134,401) (481,764) (3,100,934) (54,684,760) (2,967,844)a - - - - (4,810,211)a (2,219,316) (116,700) (1,700,331) (9,843,889) (534,627)aa 5,207,209 502,829 2,593,746 24,738,023 (33,535)aa

- - - - 3,627 a (843,115) (3,627) (639,874) (12,656,351) - a (30,000) - - (420,000) - aa (873,115) (3,627) (639,874) (13,076,351) 3,627 aaaaa (823,966) - (21,290) (4,430,935) - a (1,055,430) (726,145) (696,707) (11,425,995) (1,723,913)

- - - - 83,851 a 4,837,813 - - 49,983,103 - a (4,835,426) - - (54,730,238) - a (717,911) - (105,000) (2,582,091) - a 517,697 466,143 - 1,726,712 - a - - - (842,995) - a - - - 7,846,629 - aa (2,077,223) (260,002) (822,997) (14,455,810) (1,640,062)aaa 235,041 17,712 114,381 1,430,245 158,472 aa 235,041 17,712 114,381 1,430,245 158,472 aaa 2,491,912 256,912 1,245,256 (1,363,893) (1,511,498)aa 12,778,671 1,030,383 6,680,528 85,298,459 10,656,609 aa $ 15,270,583 $ 1,287,295 $ 7,925,784 $ 83,934,566 $ 9,145,111 a

(Con� nued)

61


CITY OF LEESBURG, FLORIDASTATEMENT OF CASH FLOWS


(Concluded)


Electric Gas WaterUtility Utility UtilityFund Fund Fund

Reconciliation of Cash and Cash Equivalents to Balance Sheet

Total Unrestricted Equity in Pooled Cash and Cash Equivalents $ 30,442,311 $ 6,417,080 $ 8,841,202 Total Restricted Equity in Pooled Cash and Cash Equivalents & Cash with Fiscal Agent 10,522,458 1,186,132 2,041,721

Total Cash and Cash Equivalents, End of Year $ 40,964,769 $ 7,603,212 $ 10,882,923

Reconciliation of Operating Income (Loss)to Net Cash Provided by (Used in) OperatingActivities

Opera� ng Income (Loss) $ 9,175,266 $ 1,733,896 $ 2,749,045 Adjustments to Reconcile Opera� ng Income (Loss) to Net Cash Provided by (Used in) Opera� ng Ac� vi� es: Deprecia� on and Amor� za� on 3,947,566 435,538 1,272,081 Decrease (Increase) in Assets: Customer Accounts (Net of Allowances) 905,188 (30,679) (103,875) Miscellaneous Receivables - - - Prepaid Items 17,706 - (63) Inventory (10,241) (1,373) (35,303) Decrease (Increase) in Deferred Ou� lows Pension 3,536 1,208 779 Increase (Decrease) in Liabili� es: Accounts Payable (2,276,847) 16,361 (139,143) Unearned Revenue - - - Due to Other Governments 15,403 727 - Accrued Expenses 23,327 (45,061) 5,499 Claims Payable - - - Rate Stabiliza� on Credit (1,555,214) - - Other Postemployment Bene� ts Liability 99,806 42,142 48,796 Net Pension Liability 207,607 71,067 45,829 Decommissioning/Postclosure Payable - - - Other 20,595 (16,226) (8,522) Increase (Decrease) in Deferred In� ows Pension (116,649) (39,841) (25,692)Net Cash Provided by (Used in) Operating Activities $ 10,457,049 $ 2,167,759 $ 3,809,431

Noncash Investing, Capital or FinancingTransactions

Capital Contribu� on - - -

62


GovernmentalBusiness-type Activities - Enterprise Funds Activities

Major FundsWastewater Nonmajor Total Internal

Utility Airport Enterprise Enterprise ServiceFund Fund Funds Funds Funds

$ 12,982,264 $ 1,287,295 $ 7,711,792 $ 67,681,944 $ 9,145,111

2,288,319 - 213,992 16,252,622 -

$ 15,270,583 $ 1,287,295 $ 7,925,784 $ 83,934,566 $ 9,145,111

$ 3,449,067 $ (884,268) $ 2,117,336 $ 18,340,342 $ (1,572,944)

1,547,786 1,384,027 528,925 9,115,923 905,537

(34,753) (1,549) (41,194) 693,138 - - - - - (25,970) - - 4,490 22,133 - - - 11,380 (35,537) 49,452

1,555 - 1,234 8,312 408

117,267 (115) (52,980) (2,335,457) 403,955 - (6,000) - (6,000) - - - (2,222) 13,908 -

27,867 1,018 5,424 18,074 757 - - - - 132,353 - - - (1,555,214) -

88,719 4,436 57,668 341,567 58,120 91,463 472 72,542 488,980 23,952

- - (62,012) (62,012) - (30,487) 4,808 (6,177) (36,009) 4,273 (51,275) - (40,668) (274,125) (13,428)

$ 5,207,209 $ 502,829 $ 2,593,746 $ 24,738,023 $ (33,535)

- $ 140,000 - - $ 375,000

63


64

FIDUCIARY FUNDS

Pension Trust Funds account for the ac� vi� es of the � re� ghters' and police o� cers' and the general employees’ pension funds, which accumulate resources for pensionbene� ts and disability payments to quali� ed re� rees.

65

CITY OF LEESBURG, FLORIDASTATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDSSEPTEMBER 30, 2016

EmployeeRetirement

Funds

Assets

Cash $ 5,350

Investments, at Fair Value:U.S. Government Securi� es 7,209,269Corporate Bonds 6,949,716Corporate Stocks 26,573,880Alterna� ve Investments 11,929,075Money Market 1,561,823Mutual Funds 15,950,780

Total Investments 70,174,543

Interest Receivable 109,967

Total Assets 70,289,860

Net Position

Restricted for:Employees' Pension Bene� ts $ 70,289,860


66

CITY OF LEESBURG, FLORIDASTATEMENT OF CHANGES IN FUND NET POSITION

FIDUCIARY FUNDSFOR THE YEAR ENDED SEPTEMBER 30, 2016

EmployeeRetirement

Funds

Additions

Contribu� ons:Employer $ 1,959,145State 334,345Employee 440,534

Total Contribu� ons 2,734,024

Investment Income:Net Increase (Decrease) in Fair Value of Investments 4,170,795Interest and Dividend Income 1,453,882Other Income 158,460Less: Investment Expenses (343,383)

Total Investment Income 5,439,754

Total Additions 8,173,778

Deductions

Bene� t Payments 4,587,299Refund of Contribu� ons 298,072Administra� ve Expense 166,550

Total Deductions 5,051,921

Change in Plan Net Position 3,121,857

Net Position Restricted for Employees' Pension Benefits:

Beginning of Year 67,168,003

End of Year $ 70,289,860


67


68

NOTES TO THE FINANCIAL STATEMENTS

69

CITY OF LEESBURG, FLORIDANOTES TO THE FINANCIAL STATEMENTS


NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accoun� ng and repor� ng of the City of Leesburg, Florida (the City) conform to accoun� ng principles generallyaccepted in the United States (GAAP) as applied to governmental en� � es. The Governmental Accoun� ngStandards Board (GASB) is the accepted standard-se� ng body for establishing governmental accoun� ng and� nancial repor� ng principles, which are primarily set forth in GASB’s Codification of Governmental Accounting andFinancial Reporting Standards. The more signi� cant of these accoun� ng policies are summarized below.

A. Financial Reporting Entity

The City is a Florida municipality governed by an elected � ve-member City Commission. The City wasestablished by the adop� on of its Charter in the Laws of Florida, Chapter 9820, 1923. The City provides atradi� onal mix of governmental services, including police and � re protec� on, the construc� on andmaintenance of streets and infrastructure, library, recrea� onal ac� vi� es, cultural events, planning, zoning,housing, and administra� ve services. The City also provides a full range of u� lity services, including electric,natural gas, solid waste, communica� ons (which includes Internet and � ber op� c cable services), water, reusewater, wastewater treatment, airport, and stormwater. In addi� on, the City has three CommunityRedevelopment Agencies (CRAs), which are Greater Leesburg, Carver Heights/Montclair Area and U.S. Highway441 & 27.

The City Commission is governed by the City Charter and by state and local laws and regula� ons. The CityCommission is responsible for the establishment and adop� on of policy for the City. The execu� on of suchpolicy is the responsibility of the Commission-appointed City Manager.

This report includes all funds, departments, agencies, boards and commissions, and other organiza� onal unitsthat are administered by the City Manager and/or controlled by or dependent upon City Commission as setforth in the City Charter. In GASB Statement No. 61, The Financial Reporting Entity: Omnibus - an amendmentof GASB Statements No. 14 and 34, the GASB has set forth criteria to be considered in determining � nancialaccountability. These criteria include appoin� ng a vo� ng majority of an organiza� on’s governing body and: (1)the ability of the City to impose its will on that organiza� on; or (2) the poten� al for the organiza� on to providespeci� c � nancial bene� ts to or impose speci� c � nancial burdens on the City.

As required by GAAP, these � nancial statements present the City of Leesburg (the primary government) and itscomponent units. In evalua� ng the City as a repor� ng en� ty, management has addressed all poten� alcomponent units for which the City may or may not be � nancially accountable and, if applicable, has includedthem in the City's � nancial statements. Addi� onally, the primary government is required to consider otherorganiza� ons for which the nature and signi� cance of their rela� onship with the primary government are suchthat exclusion would cause the repor� ng en� ty's � nancial statements to be misleading or incomplete.

The City has iden� � ed and included within the � nancial repor� ng en� ty, as its component units, legallyseparate organiza� ons for which the City is � nancially accountable for which a signi� cant rela� onship with theCity exists such that exclusion would cause the City’s � nancial statement to be misleading or incomplete.

Blended component unit: There is one component unit which is legally separate from the City, but is sointertwined with the City that it is, in substance, the same as the City. It is reported as part of the City andblended into appropriate funds listed below:

Community Redevelopment Agency (CRA): The City established the Greater Leesburg, CarverHeights/Montclair Area, and U.S. Highway 441 & 27 Community Redevelopment Agencies as component unitsof the City pursuant to Sec� on 163.512, Florida Statutes.

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The CRA’s sole purpose is to administer funds distributed via state law for blighted areas within the City. TheGoverning Boards are composed of the City Commission plus two members appointed by the City Commission;therefore the City Commission has absolute in� uence over the CRA board. Addi� onally, the City provides� nancial support to the CRA, so a � nancial bene� t/burden rela� onship exists. In accordance with FloridaStatute 163.387, the supplemental schedule details the following: the amount and source of revenues, theamount and purpose of expenditures, including the amount of debt principal and interest paid during thecurrent year. The remaining amount of indebtedness to which revenues of the fund are pledged, are detailed in Note 8. The CRA is reported as a major special revenue fund.

B. Recent Government Accounting Standards Board (GASB) Statements

In � scal year 2016, the City implemented several news GASB statements. GASB Statement No. 72, Fair ValueMeasurement and Application, addresses accoun� ng and � nancial repor� ng issues related to fair valuemeasurements of assets and liabili� es, and provides guidance for applying fair value to certain investmentsand disclosures related to all fair value measurements. Addi� onal disclosures have been added to Note 4 –Deposits and Investments related to fair value measurements and addi� onal informa� on of certaininvestments. GASB Statement No. 79, Certain External Investment Pools and Pool Participants, addressesaccoun� ng and � nancial repor� ng for certain external investment pools and pool par� cipants, speci� callyestablishing criteria for an external investment pool to qualify for making the elec� on to measure itsinvestments at amor� zed cost for � nancial repor� ng purposes. As the City is a par� cipant in three externalinvestment pools that adopted GASB Statement No. 79, certain disclosures regarding such have been added toNote 4.

C. Basic Financial Statements

The basic � nancial statements include both city-wide and fund level statements. The City, as the primarygovernment, is reported separately from its component units. The city-wide statements report on all ac� vi� esof the City and its component units except those that are � duciary in nature.

Statements for � duciary ac� vi� es, such as employee pension plans, are presented in a separate sec� on of thisreport. Both the city-wide and fund level statements classify primary ac� vi� es of the City as eithergovernmental ac� vi� es, which are primarily supported by taxes and intergovernmental revenues, or businesstype ac� vi� es, which are primarily supported by user fees and charges.

City-wide � nancial statements include a Statement of Net Posi� on and a Statement of Ac� vi� es. Thesestatements report on the government as a whole, both the primary government and its component units, andprovide a consolidated � nancial picture of the government. As part of the consolida� on process, interfundac� vi� es are eliminated to avoid distorted � nancial results. Fiduciary funds of the government are notincluded in the presenta� on since these resources are not available for general government funding purposes.The Statement of Net Posi� on reports all � nancial and capital resources of the City’s governmental andbusiness-type ac� vi� es. It is presented in a net posi� on format and shown with three components: (1) netinvestment in capital assets; (2) restricted net posi� on; and (3) unrestricted net posi� on.

The Statement of Ac� vi� es reports the func� onal categories of programs provided by the City anddemonstrates how and to what degree those programs are supported by speci� c revenues.

Program revenues are classi� ed into three categories: (1) charges for services; (2) opera� ng grants andcontribu� ons; and (3) capital grants and contribu� ons. Charges for services refer to direct recovery fromcustomers for services rendered. Grants and contribu� ons refer to revenues restricted for speci� c programswhose use may be restricted further to opera� onal or capital items. The general revenues sec� ons displayrevenues collected that help support all func� ons of the government.

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The fund � nancial statements follow and report addi� onal and detailed informa� on about the City’sopera� ons for major funds individually, and non-major funds in the aggregate for governmental, proprietaryand � duciary funds. A reconcilia� on is provided that converts the results of governmental fund accoun� ng tothe city-wide presenta� on.

D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation

City-wide � nancial statements, as well as the fund � nancial statements for proprietary funds and � duciaryfunds, are reported using the economic resources measurement focus, and the accrual basis of accoun� ng.Revenues are recognized in the period for which they are levied. When both restricted and unrestrictedresources are available for use, it is the City's policy to use restricted resources � rst, then unrestrictedresources as needed.

Opera� ng revenues shown for proprietary opera� ons generally result from producing or providing goods andservices such as electric, gas, communica� ons, water, wastewater, stormwater, solid waste and airport.Opera� ng expenses include all costs related to providing the service or product. These costs include salariesand bene� ts, supplies, travel, contract services, deprecia� on, administra� ve expenses, and/or other expensesdirectly related to the cost of services. All other revenue and expenses not mee� ng these de� ni� ons arereported as non-opera� ng revenues and expenses.

All governmental fund � nancial statements are reported using a current � nancial resources measurementfocus and a modi� ed accrual basis of accoun� ng. Under the modi� ed accrual basis of accoun� ng, revenues arerecognized in the accoun� ng period in which they become both measurable and available to � nanceexpenditures of the current period. Available means collec� ble within the current period, or soon enoughtherea� er, to be used to pay liabili� es of the current period. This period is within 180 days of the end of the� scal year, and jointly assessed taxes collected through other governments, are within 60 days.

Property taxes, franchise taxes, investment earnings and most charges for services are recorded as earnedsince they are measurable and available. Licenses, permits and assessments, � nes and forfeitures, andmiscellaneous revenues are recorded as revenues when received in cash because they are generally notmeasurable un� l received.

A signi� cant por� on of the City's grants and contracts are exchange transac� ons. Funds from thesetransac� ons are deemed to be earned and reported as revenue when such funds have been expendedtowards the designated purpose and eligibility requirements have been met.

Expenditures are recorded when the related fund liability is incurred. Excep� ons to this general rule include:(1) accumulated paid � me o� , which is not reported un� l they have been paid; (2) prepaid insurance andsimilar items, which are reported only on the balance sheet and do not a� ect expenditures; and (3) principaland interest on long-term debt, which are recognized when due. Budgets for governmental funds are alsoprepared on the modi� ed accrual basis.

The City charges centralized services through the General Fund and Internal Service Funds to func� onalac� vi� es through various charge methods. Expenses reported for func� onal ac� vi� es include these indirectexpenses, including an administra� ve component.

The accoun� ng policies and the presenta� on of the � nancial report of the City have been designed to conformto GAAP as applicable to government units, in accordance with the GASB.

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E. Major Governmental Funds

1. The General Fund is the government’s primary opera� ng fund. It accounts for all � nancial resources ofthe general government, except those required to be accounted for in another fund.

2. The Community Redevelopment Agency Fund includes the Greater Leesburg CommunityRedevelopment Agency, Carver Heights/Montclair Area Community Redevelopment Agency, and U.S.Highway 441 & 27 Community Redevelopment Agency. These are incremental tax districts establishedpursuant to Florida Statutes and accounted for in a special revenue fund. The fund accounts for theincremental increase in ad valorem tax revenue collected within the designated communityredevelopment areas. Revenues must be u� lized and expended in accordance with the respec� vecommunity redevelopment plans.

3. The Capital Projects Fund accounts for � nancial resources used for the acquisi� on or construc� on ofmajor capital facili� es (other than those � nanced by proprietary funds and trust funds).

F. Major Enterprise Funds

1. The Electric Utility Fund accounts for the purchase and distribu� on of electric services.

2. The Gas Utility Fund accounts for the purchase and distribu� on of gas services.

3. The Water Utility Fund accounts for costs for collec� on, treatment, and distribu� on of water services.

4. The Wastewater Utility Fund accounts for costs to provide wastewater and sanitary sewer services.

5. The Airport Fund accounts for the costs associated with the management, construc� on, maintenance,protec� on, control, regula� on, use, and enhancement of the City's Interna� onal Airport.

G. Internal Service Funds

Internal Service Funds account for the � nancing of goods and services provided by one department to otherdepartments of the governmental unit on a cost-reimbursement basis. The City maintains four internal servicefunds:

1. The General Employees’ Health Insurance Fund accounts for maintaining the City’s self-insured employeehealth insurance.

2. The Workers’ Compensation Insurance Fund accounts for maintaining the City’s workers compensa� onself-insurance fund.

3. The Fleet Maintenance Fund accounts for maintaining the purchases and services of the City’s vehicles.

4. The Risk Management Fund accounts for maintaining the City’s self-insured property and casualtypolicies.

H. Fiduciary Funds

Pension Trust Funds account for the ac� vi� es of the � re� ghters’ and police o� cers’ pension funds, and thegeneral employees’ re� rement fund, which accumulate resources for pension bene� ts and disability paymentsto quali� ed re� rees.

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I. Encumbrances

Encumbrance accoun� ng, under which purchase orders, contracts and other commitments for theexpenditure of monies are recorded in order to reserve a por� on of the applicable budget appropria� on, isu� lized by the governmental funds of the City. Encumbrances lapse at the year end.

J. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position/Fund Balance

1. Cash and Investments - The City’s cash and cash equivalents include cash on hand, demand deposits, andequity in pooled cash and investments. The equity in pooled cash and investments represents a fund’sshare of a cash and investment pool maintained by the City for use by all funds, except the pension fundsand funds with agreements that require separate bank accounts. State statutes require all deposits of theCity, including demand deposit accounts, � me deposit accounts and money market accounts be held inins� tu� ons designated by the Treasurer of the State of Florida as “quali� ed depositories” and accordingly,are covered by a collateral pool as required by the statute.

All investments are reported at fair value. For the purpose of the statement of cash � ows, the Cityconsiders cash equivalents to be highly liquid investments (including restricted assets) with an originalmaturity of three months or less when purchased. Interest earned from investments purchased withpooled cash is allocated to each par� cipa� ng fund based on the fund’s average equity balance, except, asrequired by City charter. Funds that incur nega� ve equity in pooled cash and investments during the yearincur a charge for interest. Funds used to account for federal and state grants may have nega� ve equity inpooled cash and investments throughout the year due to the reimbursement basis of the grant programs.The posi� ve equity funds absorb charges for interest to funds with net nega� ve equity in pooled cash andinvestments.

2. Receivables and Payables - Ac� vity between funds that are representa� ve of lending/borrowingarrangements outstanding at the end of the � scal year are referred to as either “due to/from other funds”(i.e., the current por� on of interfund loans) or “advances to/from other funds” (i.e., the non-currentpor� on of interfund loans).

Accounts receivable balances are shown net of the allowance for uncollec� ble accounts. The allowanceamounts in the enterprise funds are based on historical experience. In the governmental funds, theallowance varies based on management es� mates. Electric, gas, water and related wastewater charges tocustomers are based on actual consump� on. Consump� on is determined on a monthly cycle basis. TheCity recognizes as revenue the es� mated unbilled consump� on at � scal year-end.

3. Inventories and Prepaid Items - Inventories of expendable supplies held for consump� on are priced atthe "� rst-in-� rst-out" method of accoun� ng. Governmental fund type inventories are recorded using theconsump� on method. Reported inventories in governmental funds are included with nonspendable fundbalance because they are not in spendable form. In proprietary fund types, inventories are expendedwhen consumed. Certain payments to vendors re� ect costs applicable to future accoun� ng periods andare recorded as prepaid items in both government-wide and fund � nancial statements. The costs ofprepaid items are recorded as expenditures when consumed rather than when purchased.

4. Capital Assets - Capital assets, which include land, property, plant, equipment, and infrastructure assets(e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental orbusiness-type ac� vi� es columns in the city-wide � nancial statements.

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Capital asset purchases are recorded as capital outlay expenditures in the fund level governmental fundsin the year of acquisi� on. Property, plant, and equipment with ini� al, individual costs that equal orexceed $5,000 with es� mated useful lives of over one year are recorded as capital assets. Roads, bridges,and sidewalks are capitalized when their ini� al costs equal or exceed $25,000 as long as they possesses� mated useful lives of more than one year. Capital assets are recorded at historical cost or es� matedhistorical cost. Donated capital assets are recorded at es� mated fair value at the date of dona� on.

For intangible assets, the City maintains a $100,000 threshold for related assets. The costs of normalmaintenance and repairs that do not add to the fair value of the asset or materially extend the assets’lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects areconstructed. Interest incurred during the construc� on phase of capital assets of major business-typeac� vi� es is included as part of the capitalized value of the assets constructed. During 2016, there was nocapitalized interest.

Infrastructure, buildings, improvements other than buildings, u� lity plant, vehicles and equipment aredepreciated using the straight-line method over the following es� mated useful lives:

Buildings 10 - 50 YearsImprovements Other than Buildings 5 - 50 YearsU� lity Plant 10 - 50 YearsVehicles and Equipment 5 - 50 YearsInfrastructure 15 - 60 Years

Expenditures for repairs and maintenance are expensed when incurred. Addi� ons, major renewals andreplacements that increase the useful lives of the assets are capitalized.

5. Deferred Outflows/Inflows of Resources - In addi� on to assets and liabili� es, the statements of netposi� on report a separate sec� on for deferred ou� lows/in� ows of resources. This separate � nancialstatement element, deferred ou� low of resources, represents a consump� on of net posi� on that appliesto future period(s) and so will not be recognized as an ou� low of resources un� l then. The City has twoitems that qualify for repor� ng in this category. 1) The deferred amounts on refunding reported in thecity-wide and proprietary statements of net posi� on. A deferred amount on refunding results from thedi� erence in the carrying value of refunded debt and its reacquisi� on price, and is recognized as acomponent of interest expense in a systema� c manner over the shorter of the life of the refunded orrefunding debt. 2) The deferred amounts on pension obliga� ons reported in the city-wide and proprietarystatements of net posi� on. A deferred amount on pension obliga� ons results from expenses recognizedover de� ned future periods.

The City’s Statement of Net Posi� on includes deferred in� ows of resources. This separate � nancialstatement element represents an acquisi� on of net posi� on that applies to future periods and so will notbe recognized as an in� ow of resources un� l then. The City’s deferred in� ows are pension related and canbe found in the en� ty-wide and proprietary statements of net posi� on. Deferred In� ows related to theCity’s pensions result from resources that will be available to reduce the City’s pension expense but notun� l future periods.

6. Contributions - Contribu� ons in the form of cash and capital assets to the governmental ac� vi� es of theCity are recognized on the Statement of Ac� vi� es as revenues in the period they are received.Contribu� ons of capital assets and primarily completed infrastructure from developers are recognized atthe fair value at the date of dona� on. All contribu� ons are reported on the Statement of Ac� vi� es asprogram revenues, with opera� ng contribu� ons reported separately from capital contribu� ons.

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7. Interfund Activity - Interfund ac� vity within and among the City's three fund categories (governmental,proprietary, and � duciary) are classi� ed as reciprocal interfund ac� vity and non-reciprocal interfundac� vity.

Reciprocal interfund ac� vity � ows between funds with an expecta� on of repayment and is reported asinterfund receivables and payables.

Reciprocal interfund ac� vity � ows between funds without an expecta� on of repayment within areasonable � me and is reported as transfers between funds. Interfund services provided and used aresales and purchases of goods and services between funds for a price approxima� ng their external value,and are reported as revenues and expenditures (or expenses) in the funds.

Non-reciprocal interfund ac� vity is the � ow of assets between funds without an equivalent � ow of assetsin return, or without a requirement for repayment. This is reported as transfers in governmental fundsand non-opera� ng revenues and expenses in proprietary funds.

As a rule, the e� ect of interfund ac� vity has been eliminated from City-wide � nancial statements.Excep� ons to this general rule are payments in lieu of taxes and other charges between the City’s Water,Wastewater, Solid Waste, and General Fund, as well as cost reimbursement transac� ons between theenterprise funds and various other func� ons of the government. Exclusion of these charges would distortthe direct costs and program revenues reported for the various func� ons concerned.

8. Restricted Assets - Assets are reported as restricted in the City-wide Statement of Net Posi� on and theenterprise fund level statements when constraints are placed on asset use. The constraints are either: (1)externally imposed by creditors, grantors, contributors, or laws or regula� ons of other governments; or(2) imposed by law or through cons� tu� onal provisions or enabling legisla� on.

9. Unearned Revenues - In� ows that do not yet meet the criteria for revenue recogni� on, such asoccupa� onal licenses collected in advance, are recorded as unearned revenue in the city-wide and in thefund � nancial statements.

10. Self-Insurance Claims - Liabili� es for reported claims and incurred but not reported claims are es� matedbased on an actuarial review of claims pending and historical experience.

11. Compensated Absences - Employees earn paid � me o� (PTO) that is commensurate with their years ofservice with the City. A maximum of 560 hours can be accumulated and used for vaca� on, sick, personalbusiness, etc. Upon termina� on or re� rement, employees are paid for a maximum of 360 hours of PTO� me. This PTO program replaced separate vaca� on and sick � me programs under which some employeess� ll have � me available.

In governmental and proprietary fund � nancial statements, the amount of compensated absencesassociated with employee vaca� ons that are recorded as expenditures (expenses) represent the amountspaid during the year, plus the amount accrued at year-end that would normally be liquidated withavailable spendable resources. Only the amount of the compensated absence liability that has matured isreported in the governmental fund � nancial statements and the General Fund is typically used to liquidatethis liability. In the government-wide � nancial statements, all governmental fund compensated absencesare recorded and split between the current and noncurrent por� ons. For proprietary funds, the en� reliability for compensated absences of these funds is re� ected in the respec� ve � nancial statements, splitbetween the current and noncurrent por� ons.

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12. Long-Term Obligations - In the city-wide � nancial statements, and proprietary fund types in the fund� nancial statements, long-term debt and other long-term obliga� ons are reported as liabili� es in theapplicable governmental ac� vi� es, business-type ac� vi� es, or proprietary fund type statement of netposi� on. Bond premiums and discounts are amor� zed over the life of the bonds. Bonds payable arereported net of the applicable bond premium or discount. Bond issuance costs are expensed as incurred.

In the fund � nancial statements, governmental fund types recognize bond premiums and discounts, aswell as bond issuance costs, during the current period. The face amount of debt issued is reported asother � nancing sources. Premiums received on debt issuances are reported as other � nancing sourceswhile discounts on debt issuances are reported as other � nancing uses. Issuance costs, whether or notwithheld from the actual debt proceeds received, are reported as debt service expenditures.

13. Fund Balances - Fund balance is divided into � ve classi� ca� ons based primarily on the extent to which theCity is bound to observe constraints imposed upon the use of the resources in the governmental funds. The classi� ca� ons are as follows:

a. Nonspendable - The nonspendable fund balance category includes amounts that cannot be spentbecause they are not in spendable form, or are legally or contractually required to be maintainedintact. The "not in spendable form" criterion includes items that are not expected to be converted tocash. It also includes the long-term amount of interfund loans.

b. Restricted - Fund balance is reported as restricted when constraints placed on the use of resources areeither externally imposed by creditors (such as through debt covenants), grantors, contributors, orlaws or regula� ons of other governments, or are imposed by law through cons� tu� onal provisions orenabling legisla� on (City ordinances). Enabling legisla� on authorizes the City to assess, levy, charge, orotherwise mandate payment of resources (from external resource providers) and includes a legallyenforceable requirement that those resources be used only for the speci� c purposes s� pulated in thelegisla� on. Legal enforceability means the City can be compelled by an external party such as ci� zens,public interest groups, or the judiciary to use resources created by enabling legisla� on only for thepurposes speci� ed by the legisla� on.

c. Committed - The commi� ed fund balance classi� ca� on includes amounts that can be used only for thespeci� c purposes imposed by formal ac� on (ordinance) of City Commission. Those commi� ed amountscannot be used for any other purpose unless City Commission removes or changes the speci� ed use bytaking the same type of ac� on (ordinance) it employed to previously commit those amounts. Incontrast to fund balance that is restricted by enabling legisla� on, commi� ed fund balanceclassi� ca� on may be redeployed for other purposes with appropriate due process.

Constraints imposed on the use of commi� ed amounts are imposed by City Commission, and anythingseparate from these constraints is not considered to be legally enforceable. Commi� ed fund balancealso incorporates contractual obliga� ons to the extent that exis� ng resources in the fund have beenspeci� cally commi� ed for use in sa� sfying those contractual requirements.

d. Assigned - Amounts in the assigned fund balance classi� ca� on are intended to be used by the City forspeci� c purposes, but do not meet the criteria to be classi� ed as restricted or commi� ed. Ingovernmental funds other than the General Fund, assigned fund balance represents the remainingamount that is not restricted or commi� ed. The City, for planning purposes, may assign fund balancesfor a speci� c purpose, such as se� ng aside funds for capital equipment replacement, emergencypreparedness, and accrued bene� t payouts to re� red/terminated employees. Unlike commitments,assignments generally exist temporarily. Decisions with regard to these purposes and amounts will bedetermined by the City Commission by resolu� on and addi� onal ac� on by the City is essen� al to eitherremove or revise them.

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e. Unassigned - Fund balance is the residual classi� ca� on for the general fund and includes all spendableamounts not contained in the other classi� ca� ons. In the other governmental funds, the unassignedclassi� ca� on is used only to report a de� cit balance resul� ng from overspending for speci� c purposesfor which amounts had been restricted, commi� ed, or assigned.

The City applies restricted resources � rst when expenditures are incurred for purposes for which eitherrestricted or unrestricted (commi� ed, assigned, or unassigned) amounts are available. Similarly, withinunrestricted fund balance, commi� ed amounts are reduced � rst, followed by assigned, and then byunassigned amounts when expenditures are incurred for purposes for which amounts in any of theunrestricted fund balance classi� ca� ons could be used. Unassigned fund balance may also includenega� ve balances for any governmental fund if expenditures exceed amounts restricted, commi� ed,or assigned for those speci� c purposes.

14. Use of Estimates - The prepara� on of � nancial statements in conformity with GAAP requires managementto make es� mates and assump� ons that a� ect the reported amounts of assets and liabili� es anddisclosure of con� ngent assets and liabili� es as of the date of the � nancial statements, and the reportedamounts of revenues and expenditures during the repor� ng period. Actual results could di� er from thosees� mates.

15. Minimum Fund Balance Policy - The General Fund reserve target is 20% of the fund's current yearbudgeted appropria� ons. For the purpose of determining if the target has been met, the unassigned fundbalance of the general fund is then compared with the annual appropria� ons budget.

For other major funds designated as major funds within the City's CAFR, the City has established a rangeof 15-25% of opera� ng expenditures, which are u� lized for the purposes allowed by these various fundtypes. Fiduciary funds do not have fund balance targets.

16. Electric Rate Stabilization - The City purchases bulk power from the Florida Municipal Power Agency(FMPA) and resells it to the electric u� lity customers. The Bulk Power Cost Adjustment can varysigni� cantly from month to month. The Electric Rate Stabiliza� on is designed to smooth out the electricu� lity rates paid by the electric u� lity customers. This stabiliza� on process serves to minimize variances inthe purchased power component of the City’s electric u� lity service charge by passing along a more stablecost over � me, even though the actual costs incurred by the City can vary. When bulk power costs arehigher than usual, previously collected funds are used to stabilize the cost passed along to electric u� lityconsumers. The converse occurs when actual costs are less that the amount charged since the di� erencebetween the actual cost and that charged consumers is reserved for future applica� on.

17. Reclassifications - Certain 2015 amounts have been reclassi� ed to conform to the 2016 presenta� on.

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NOTE 2 -BUDGET AND BUDGETARY DATA

A. Budget Policy

The City, in accordance with its City code and State law, applies the following procedures in establishing thebudgetary data re� ected in the accompanying � nancial statements.

An annual opera� ng budget is prepared by the Finance Department for the General, Special Revenue,Enterprise, Capital Improvements Projects and Debt Service Funds. The City Manager submits to the CityCommission the proposed budget for the ensuing � scal year.

The opera� ng budget includes proposed expenditures and the means to fund them, as well as a proposed advalorem millage rate. Public hearings are conducted to obtain taxpayer comments on the proposed budgetand ad valorem millage rate. Prior to October 1, the City Commission legally enacts the opera� ng budget andsets the ad valorem millage rate by passage of resolu� ons.

The City Manager is authorized to transfer budgeted amounts within any fund, but may not revise total fundexpenditures without the approval of the City Commission. The budgetary data presented is in agreementwith the originally adopted budget as amended by the City Commission.

Formal budgetary integra� on is employed as a management control device during the year for substan� ally allfunds. Budgets are adopted on a basis consistent with GAAP. Total budgeted appropria� ons within agovernmental fund-type may not be exceeded legally. Appropria� ons lapse at the end of the year. Budgetdata, when presented in the basic � nancial statements, is prepared on the same basis of accoun� ng as thatprescribed for the fund.

B. Excess of Expenditures Over Appropriations

The Police Forfeitures Fund, Police Educa� on Fund, Gas Tax Fund, Police Impact Fee Fund and Recrea� onImpact Fee Fund contained excesses of expenditures over appropria� ons during the � scal year endedSeptember 30, 2016.

No other individual fund contained an excess of total expenditures over total appropria� ons during the � scalyear ended September 30, 2016, except insigni� cant variances. However, within various funds, there may bean excess of expenditures over appropria� ons at the line item level.

C. Deficit Fund Balance/Net Position

The following individual funds show de� cit fund balance/net posi� on at September 30, 2016, in the amountsshown below:

Fund Type DeficitFire Impact Fee Fund Nonmajor Governmental Fund $ 10,211 Workers' Compensa� on Insurance Internal Service Fund $ 220,799

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NOTE 3 -PROPERTY TAXES

The City is permi� ed under its charter to levy up to $10 per $1,000 of assessed valua� on for general governmentservices other than the payment of principal and interest on general long-term debt and in unlimited amounts forthe payment of principal and interest on long-term debt. Addi� onal taxes assessed for the payment of generallong-term debt issues of the City must be approved by the public. The tax rate assessed by the City for the yearended September 30, 2016 was $4.2678 per $1,000 of assessed property value. Current tax collec� ons (inclusive oflegally available early payment discounts) for the City were approximately 96.77% of the total tax levy. Theproperty calendar provides for the tax revenue to be billed and collected within the applicable � scal year.

Calendar of Property Tax Events

Tax Collection

January 1 Property taxes are based on assessed property value at this date as determinedby the Lake County Property Appraiser

July 1 Assessment roll approved by the state.

September 30 Millage resolu� on approved by the City Commission.

October 1 Beginning of � scal year for which taxes have been levied.

November 1 Property taxes due and payable.

November 30 Last day for 4% maximum discount.

April 1 Unpaid property taxes become delinquent.

May 15 Tax cer� � cates are sold by the Lake County Tax Collector. This is the � rst lien dateon the delinquent proper� es.

Property tax collec� ons are governed by Chapter 197, Florida Statutes. The Lake County Tax Collector bills andcollects all property taxes levied within the County. Discounts are allowed for early payment of 4% inNovember, 3% in December, 2% in January, and 1% in February. If property taxes are not paid by April 1, theCounty adds a 3% penalty on real estate, and 1.5% on personal property.

The Tax Collector adver� ses and sells tax cer� � cates on all real property for delinquent taxes. Cer� � cates notsold revert back to the County. The Tax Collector must receive payment before the cer� � cates are issued. Anyperson owning land on which a tax cer� � cate has been sold may redeem the land by paying the Tax Collectorthe face amount of the tax cer� � cate plus interest and other costs. The owner of a tax cer� � cate may at any� me a� er taxes have been delinquent for two years, � le an applica� on for tax deed sale. The County, as acer� � cate owner, may exercise similar procedures two years a� er taxes have been delinquent. Tax deeds areissued to the highest bidder for the property which is sold at public auc� on.

The Tax Collector remits current taxes collected through four distribu� ons to the City in the � rst two monthsof the tax year and at least one distribu� on each month therea� er. The City recognizes property tax revenuein the period in which they are levied.

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NOTE 4 -DEPOSITS AND INVESTMENTS

A. Pooling of Cash and Investments

The City maintains a cash and investment pool that is available for use by all funds except for monies legallyrestricted to separate administra� on (i.e., pension plans). The “Cash and Investments” on the City-WideFinancial Statements, consists of cash and investments owned by each fund and de� ned as resources that canbe liquidated without delay or penalty. Cash and Investments held separately where contractualarrangements and bond covenants require such arrangements, are classi� ed as “restricted assets”. Investment earnings are allocated to the individual funds monthly based on the fund’s weighted average dailycash balance.

Deposits and investments as of September 30, 2016, are classi� ed in the accompanying � nancial statements asfollows:

City-wide Cash and Investments

Statement of Net PositionCash and Cash Equivalents $ 100,898,938 Restricted:

Cash and Cash Equivalents 23,183,750 Statement of Fiduciary Net Position

Cash Equivalents 5,350 Investments 70,174,543

Total Cash and Investments $ 194,262,581

Deposits and investments consist of the following:

Governmental and Business-Type ActivitiesCash Deposits $ 17,692,351 Investments 101,080,616 Investments with Fiscal Agent:

Debt Service Fund 1,226,876 U� li� es Debt Service Account 3,867,662 U� li� es Gas Deposit Account 215,183

Fiduciary Fund AssetsCash 5,350 De� ned Bene� t Pension Plan Investments 70,174,543

Total Cash and Investments $ 194,262,581

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Primary Government Activities

1. Investments and Investment Practices

The City’s investment guidelines are de� ned by City Ordinance and a wri� en investment policy that isapproved by the City Commission. The investment policies authorize the investment of funds in � medeposits or savings accounts of � nancial ins� tu� ons approved by the State Treasurer, and obliga� ons ofthe U.S. Government and its agencies and mutual funds. Investments may also include repurchaseagreements and investments in local government investment pools, either state-administered ordeveloped through joint powers statutes and other intergovernmental agreement legisla� on. Revenuebond covenants also restrict the type and maturi� es of investments in bond-related funds.

As of September 30, 2016, the City had the following investments and maturi� es:

Investment Maturities (In Years)Less Than

Investment Type Fair Value 1 Year 1- 2 Years 2 -3 Years 3 - 4 Years 4 - 5 Years Local Government Investment Pools $ 22,280,466 $ 22,280,466 $ - $ - $ - $ - Bank Cer� � cates of Deposit 8,058,038 6,039,521 2,018,517 - - - U.S. Government and Agencies 51,385,639 12,852,194 15,468,232 15,353,075 6,585,340 1,126,798 Corporate Fixed Income 19,356,473 13,290,507 4,764,931 1,301,035 - - Total $ 101,080,616 $ 54,462,688 $ 22,251,680 $ 16,654,110 $ 6,585,340 $ 1,126,798

2. Custodial Credit Risk

At September 30, 2016, the carrying amount of the City’s deposits was $17,692,351. Monies on depositwith � nancial ins� tu� ons in the form of demand deposit accounts and � me deposit accounts are de� nedas public deposits. The en� re City’s public deposits are held in quali� ed public depositories pursuant toState of Florida Statutes, Chapter 280, “Florida Security for Public Deposits Act”, and covered by federaldepository insurance. This act requires that the City maintain deposits only in “quali� ed publicdepositories”. All quali� ed public depositories must deposit with the State Treasurer eligible collateral insuch amounts as required by the Act. In addi� on, quali� ed public depositories are required under theAct to assume mutual responsibility against loss caused by the default or insolvency of other quali� edpublic depositories of the same type. Should a default or insolvency occur, the State Treasurer wouldimplement procedures for payment of losses according to the validated claims of the City.

3. Interest Rate Risk

Interest rate risk is the risk that as market rates change, the fair value of an investment will vary.Generally, the longer the maturity of an investment, the greater the sensi� vity of its fair value to changesin the market interest rates. The City’s formal investment policy ensures that securi� es mature to meetopera� ng cash requirements to avoid the need to sell on the open market prior to maturity. In addi� on,the policy calls for inves� ng opera� ng funds primarily in shorter-term securi� es, mutual funds orinvestment pools from which funds can be readily withdrawn without penalty and which limit the averagematurity of the por� olio from 90 days to three years. Reserve funds and other funds with longer-terminvestment horizons may be invested in securi� es not exceeding � ve years. As of September 30, 2016 theCity of Leesburg investments weighted average maturity in years was 1.54.

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4. Credit Risk

The City’s investment policy does not permit investments in commercial paper. Authorized investmentsare outlined in Florida Statute 218.415 and are generally limited to (a) the State of Florida LocalGovernment Surplus Funds Trust Fund or any intergovernmental investment pool authorized pursuant tothe Florida Interlocal Coopera� on Act of 1969, as provided in S. 163.01; (b) Securi� es and ExchangeCommission registered money market funds with the highest credit quality ra� ng; (c) interest-bearing� me deposits or savings accounts in quali� ed public depositories, as de� ned in S. 280.02; and (d) directobliga� ons of the U.S. Treasury.

5. Concentration of Credit Risk

The City’s investments are guaranteed by the U.S. Government or held in FLSAFE, FLCLASS and FPinvestment pools as described below.

6. Local Government Investment Pools

For the � scal year ended September 30, 2016, the City invested in the Florida Surplus Asset Fund Trust(FLSAFE), Florida Coopera� ve Liquid Assets Securi� es System (FLCLASS) and Florida Prime (FP) investmentpools. The investment pools operate under investment guidelines established by Sec� ons 215.47 and218.415, Florida Statutes. None of the investment pools are registrants with the Securi� es and ExchangeCommission; however, they have adopted opera� ng procedures consistent with the requirements for a2a-7-like fund and the fair value of the posi� on in the pools is equal to the value of the pool shares. TheCity’s investments in FLSAFE, FLCLASS and FP were rated AAAm by Standard & Poor’s.

All three investment pools in which the City is a par� cipant have elected to measure their investments atamor� zed cost. In accordance with GASB Statement No. 79, Certain External Investment Pools and PoolParticipants, the City is required to disclose the presence of any limita� ons or restric� ons on withdrawals.

FLCLASS and FLSAFE allow for daily redemp� ons from their funds. The investment pools may temporarilysuspend or postpone the right of redemp� on under extraordinary circumstances such as (a) war,emergency or act of God; (b) suspension of trading on major stock exchanges or a general bankingmoratorium; or (c) when an emergency exists such that the investment pools may not dispose of theirinvestments because of substan� al losses or it is not reasonably prac� cal for the pools to value their netassets. As of September 30, 2016, there were no redemp� on fees or maximum transac� on amounts, orany other requirements that serve to limit the City’s daily access to 100 percent of the account values.

FP’s rules regarding redemp� on and penal� es and redemp� on fees are governed by F.S. 218.409, whichnotes that the Execu� ve Director of the FP may, in good faith, on the occurrence of an event that has amaterial impact on liquidity or opera� ons, limit contribu� ons or withdrawals. The Trustees of the poolmay extend this for an addi� onal 15 days. F.S. 219.409(4) provides for the FP to impose penal� es for earlywithdrawal, subject to disclosure in the enrollment materials; at present, no such disclosure has beenmade. As of September 30, 2016, there were no redemp� on fees or maximum transac� on amounts, orany other requirements that serve to limit the City’s daily access to 100 percent of the account value.

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7. Fair Value

In � scal year 2016, the City adopted GASB Statement No. 72, Fair Value Measurement and Application(GASB 72). The City categorizes its fair value measurements within the fair value hierarchy established bygenerally accepted accoun� ng principles. The hierarchy is based on the valua� on inputs used to measurethe fair value of the asset. Level 1 inputs are quoted prices in ac� ve markets for iden� cal assets; Level 2inputs are signi� cant other observable inputs; Level 3 inputs are signi� cant unobservable inputs.

The City's investments in government and agencies and corporate � xed income are high-quality bondsthat are valued using a matrix pricing model (Level 2). Investments in local government investment poolsand non-nego� able cer� � cates of deposit are exempt from the GASB 72 fair value hierarchy disclosuresper paragraph 69 of GASB 72, and are valued at the City's cost and any accrued interest on theseinvestments.

B. Fiduciary Activities

The City reports three pension funds in the accompanying � nancial statements. Each of the plans has aseparate governing board of trustees, a separate investment policy, and di� ering investment restric� ons/risks.Consequently, each is disclosed separately below. All three plans are de� ned bene� t plans. All investments atyear-end were in compliance with the respec� ve plan investment policies.

1. Credit Rating – All Fiduciary Funds

Ra� ngs as of September 30, 2016, for the � duciary funds’ corporate and agency obliga� ons by Standard &Poor’s follows:

MunicipalGeneral Police Municipal

Rating Employees' Officers' Firemen's Total AAA $ - $ 38,256 $ 136,959 $ 175,215 AA+ 4,228,751 2,222,485 806,697 7,257,933 AA - 69,180 38,324 107,504 AA- 188,168 62,694 442,524 693,386 A+ - 123,682 213,918 337,600 A 374,835 267,645 676,886 1,319,366 A- 377,766 383,082 560,349 1,321,197 BBB+ 190,902 582,578 409,652 1,183,132 BBB 207,247 270,129 481,360 958,736 BBB- - 77,952 209,199 287,151 BB+ 182,400 - - 182,400 Not rated - 81,310 254,055 335,365

$ 5,750,069 $ 4,178,993 $ 4,229,923 $ 14,158,985

All of the Plan's investments in debt securi� es, other than the above described corporate and agencyobliga� ons, are backed by the U.S. government.

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2. General Employees’ Retirement Plan

City of Leesburg General Employees’ Re� rement PlanDistribu� on by Asset Type

September 30, 2016

Investment Maturities (In Years)More

Fair Less Than 1-5 6-10 ThanInvestment Type Value 1 Year Years Years 10 YearsMoney Market $ 239,541 $ 239,541 $ - $ - $ - Mutual Funds, UITs and ETFs 2,630,096 2,630,096 - - - U.S. Government and Agencies 4,228,750 - 3,788,875 439,875 - Corporate Obliga� ons 1,521,319 - 756,366 764,953 - Total 8,619,706 $ 2,869,637 $ 4,545,241 $ 1,204,828 $ - Corporate Stock 18,282,599 Alterna� ve Investments* 7,988,477 Total $ 34,890,782

*Alterna� ve Investments include partnerships and hedge fund.

a. Custodial Credit Risk

This is the risk that in the event of the failure of the counterparty, the Plan will not be able to recoverthe value of its investments that are in the possession of an outside party. Consistent with the Plan’sinvestment policy, the investments are held by the Plan’s custodial bank and registered in the Plan’sname.

b. Interest Rate Risk

Interest rate risk is the risk that as market rates change, the fair value of an investment will vary. Generally, the longer the maturity of an investment, the greater the sensi� vity of its fair value tochanges in the market interest rates. The Plan does not have a policy related to limi� ng its exposureto fair value losses arising from rising interest rates. As of September 30, 2016, the Plan'sinvestments weighted average maturity in years was 3.63.

c. Credit Risk

Credit risk is the risk that a security or a por� olio will lose some or all of its value due to a real orperceived change in the ability of the issuer to repay its debt. The risk is generally measured by theassignment of a ra� ng by a na� onally recognized sta� s� cal ra� ng agency. Purchases of bonds ordebt obliga� ons are limited to one of the four highest ra� ngs issued by Na� onally RecognizedSta� s� cal Ra� ng Organiza� ons (NRSRO). The Plan’s investment policy u� lizes por� olio diversi� ca� onin order to control this risk.

d. Concentration of Credit Risk

The investment policy of the Plan contains limita� ons on the amount that can be invested in any oneissuer as well as maximum por� olio alloca� on percentages. Investments in corporate common stockand conver� ble bonds are limited to 60% of Plan assets. No more than 10% of Plan assets shall beinvested in one company. Except for U.S. Government and agency obliga� ons, no more than 10% ofPlan assets can be invested in one issuer. No investments exceeded these thresholds at September30, 2016.

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e. Foreign Currency

The Plan has nominal exposure to foreign currencies due to investments in non-U.S. marketsimplemented through our money managers’ por� olios. Foreign currencies will � uctuate rela� ve tothe U.S. dollar, but is believed that the diversi� ca� on bene� ts outweigh poten� al risks. Given thelimited exposure, foreign currency risk is considered minor.

f. Fair Value

The Plan categorizes its fair value measurements within the fair value hierarchy established bygenerally accepted accoun� ng principles. The hierarchy is based on the valua� on inputs used tomeasure the fair value of the asset. Level 1 inputs are quoted prices in ac� ve markets for iden� calassets; Level 2 inputs are signi� cant other observable inputs; Level 3 inputs are signi� cantunobservable inputs.

The Plan's investments in government and agencies and corporate obliga� ons are primarily bondsthat are valued using a matrix pricing model (Level 2). Investments in corporate stock, mutual funds,unit investment trusts (UITs) and exchange traded funds (ETFs), which are deemed ac� vely traded,are valued using quoted market prices (Level 1). Investments in money market funds are exempt fromthe GASB 72 fair value hierarchy disclosures per paragraph 69 of GASB 72, and are valued at the Plan'scost of these investments.

The Plan's alterna� ve investments are two partnerships and a hedge fund and are valued at net assetvalue (NAV):

Alternative Investments RedemptionFrequency Redemption

Fund Deposit or Fair Unfunded (if currently NoticeStyle Name Commitment Value Commitment eligible) Period

Global equity/directional hedge fundsPine Grove Partners $ 1,425,000 $ 1,680,779 $ - Quarterly 95 Days No� ceWeatherlow O� I Ltd Cl NI 1,425,000 1,880,782 - Quarterly 65 Days No� ceUBS Trumbull Property 3,000,000 4,426,916 - Quarterly * 60 Days No� ceTotal $ 5,850,000 $ 7,988,477 $ -

*UBS has quarterly redemptions subject to available liquidity.

3. Municipal Police Officers’ Retirement Plan

City of Leesburg Municipal Police O� cers’ Re� rement PlanDistribu� on by Asset Type

September 30, 2016


Fair Less Than 1-5 6-10 ThanInvestment Type Value 1 Year Years Years 10 YearsMoney Market $ 567,765 $ 567,765 $ - $ - $ - Mutual Funds 8,082,360 8,082,360 U.S. Government and Agencies 2,222,485 - 382,160 540,716 1,299,609 Corporate Obliga� ons 1,956,508 20,806 1,222,708 543,094 169,900 Total 12,829,118 $ 8,670,931 $ 1,604,868 $ 1,083,810 $ 1,469,509 Corporate Stock 3,325,796 Alterna� ve Investment* 1,684,976 Total $ 17,839,890

*Alterna� ve Investment is a real estate partnership.

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This is the risk that in the event of the failure of the counterparty, the Plan will not be able to recoverthe value of its investments that are in the possession of an outside party. Consistent with the Plan’sinvestment policy, the investments are held by the Plan’s custodial bank and registered in the Plan’sname.


Interest rate risk is the risk that as market rates change, the fair value of an investment will vary. Generally, the longer the maturity of an investment, the greater the sensi� vity of its fair value tochanges in the market interest rates. The Plan does not have a policy related to limi� ng its exposureto fair value losses arising from rising interest rates. As of September 30, 2016, the Plan's investmentsweighted average maturity in years was 11.69.

c. Credit Risk

Credit risk is the risk that a security or a por� olio will lose some or all of its value due to a real orperceived change in the ability of the issuer to repay its debt. The risk is generally measured by theassignment of a ra� ng by a na� onally recognized sta� s� cal ra� ng agency. Purchases of bonds ordebt obliga� ons are limited to one of the three highest ra� ngs issued by Standard & Poor’s orMoody’s. The Plan’s investment policy u� lizes por� olio diversi� ca� on in order to control this risk.


The investment policy of the Plan contains limita� ons on the amount that can be invested in any oneissuer as well as maximum por� olio alloca� on percentages. Investments in corporate common stockmay not exceed 70% of Plan assets. No more than 5% of Plan assets may be invested in the commonstock of any one company. Foreign investments are limited to 10% of Plan assets. Investments indomes� c � xed income obliga� ons are limited to 45% of Plan assets. No investments exceeded thesethresholds at September 30, 2016.

e. Foreign Currency


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f. Fair Value


The Plan's investments in government and agencies and corporate obliga� ons are primarily bondsthat are valued using a matrix pricing model (Level 2). Investments in corporate stock, mutual funds,unit investment trusts (UITs) and exchange traded funds (ETFs), which are deemed ac� vely traded,are valued using quoted market prices (Level 1). Investments in money market funds are exempt fromthe GASB 72 fair value hierarchy disclosures per paragraph 69 of GASB 72, and are valued at thePlan's cost of these investments.

The Plan's alterna� ve investment is a real estate investment trust limited partnership and is valuedat net asset value (NAV). The Plan has no unfunded commitments in regards to this investment, andit is open for contribu� ons and distribu� ons on a quarterly basis.

4. Municipal Firemen’s Retirement Plan

City of Leesburg Municipal Firemen’s Re� rement PlanDistribu� on by Asset Type

September 30, 2016


Fair Less Than 1-5 6-10 ThanInvestment Type Value 1 Year Years Years 10 YearsMoney Market $ 754,517 $ 754,517 $ - $ - $ - Mutual Funds, UITs and ETFs 5,238,324 5,238,324 - - - U.S. Government and Agencies 758,034 19 165,049 332,763 260,203 Corporate Obliga� ons 3,471,889 20,087 1,586,967 1,307,585 557,250 Total 10,222,764 $ 6,012,947 $ 1,752,016 $ 1,640,348 $ 817,453 Corporate Stock 4,965,485 Alterna� ve Investments * 2,255,622 Total $ 17,443,871

*Alterna� ve Investments include two investment limited partnerships.


This is the risk that in the event of the failure of the counterparty, the Plan will not be able to recoverthe value of its investments that are in the possession of an outside party. Consistent with the Plan’sinvestment policy, the investments are held by the Plan’s custodial bank and registered in the Plans’name.


Interest rate risk is the risk that as market rates change, the fair value of an investment will vary. Generally, the longer the maturity of an investment, the greater the sensi� vity of its fair value tochanges in the market interest rates. The Plan does not have a policy related to limi� ng its exposureto fair value losses arising from rising interest rates. As of September 30, 2016, the Plan'sinvestments weighted average maturity in years was 8.95.

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c. Credit Risk

Credit risk is the risk that a security or a por� olio will lose some or all of its value due to a real orperceived change in the ability of the issuer to repay its debt. The risk is generally measured by theassignment of a ra� ng by a na� onally recognized sta� s� cal ra� ng agency. The Plan’s investmentpolicy requires that all bonds or other evidence of indebtedness acquired be listed on one or more ofthe recognized na� onal exchanges and have a ra� ng issued by a na� onally recognized sta� s� calra� ng organiza� on (NRSRO) in one of the top four classi� ca� ons, except that only 25% of the bondpor� olio may be invested below the three highest classi� ca� ons. The Plans’ investment policyu� lizes por� olio diversi� ca� on in order to control this risk.


The investment policy of the Plan contains limita� ons on the amount that can be invested in any oneissuer as well as maximum por� olio alloca� on percentages. Investments in corporate common stockand conver� ble bonds are limited to 60% of Plan assets. No more than 5% of Plan assets may beinvested in one company. Foreign investments are limited to 10% of Plan assets. No investmentsexceeded these thresholds at September 30, 2016.

e. Foreign Currency


f. Fair Value


The Plan's investments in government and agencies and corporate obliga� ons are primarily bondsthat are valued using a matrix pricing model (Level 2). Investments in corporate stock, mutual funds,unit investment trusts (UITs) and exchange traded funds (ETFs), which are deemed ac� vely traded,are valued using quoted market prices (Level 1). Investments in money market funds are exempt fromthe GASB 72 fair value hierarchy disclosures per paragraph 69 of GASB 72, and are valued at thePlan's cost of these investments.

The Plan's alterna� ve investments are two investment trust limited partnerships and are valued atnet asset value (NAV). For one of the investments ($1,683,525), the Plan has no unfundedcommitments in regards to this investment, and is open for contribu� ons and distribu� ons on aquarterly basis. For another of the investments ($572,097), the Plan has no unfunded commitmentsin regards to this investment, and is open for contribu� ons and distribu� ons with three days' no� ce. The partnership has the authority to require a 30-day no� ce should the liquida� on of the funds causeharm to other shareholders; however, the partnership has not had to apply this requirement.

89



NOTE 5 -INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS

The composi� on of interfund balances as of September 30, 2016, is as follows:

a. Interfund Receivables and PayablesReceivable Fund Payable Fund AmountGeneral Fund Community Redevelopment Agency Fund $ 69,940 General Fund Nonmajor Governmental 10,211 Total $ 80,151

The purpose of the above interfund balances was to reduce the nega� ve cash balances and fund construc� onprojects. The Community Redevelopment Agency Fund is awai� ng reimbursement for a Community DevelopmentBlock Grant.

b. Interfund Transfers

Transfers In Transfers OutMajor Funds: Governmental General Fund $ 9,516,319 $ 6,639,414 Capital Projects 7,795,935 - Enterprise Electric U� lity - 5,980,180 Gas U� lity - 4,273,522 Water U� lity - 916,033 Wastewater U� lity - 843,115 Airport - 3,627 Internal Service 3,627 - Non-major Funds: Governmental 2,550,589 570,705 Enterprise - 639,874

$ 19,866,470 $ 19,866,470

Interfund transfers represent a major source of funding in the General Fund. The amount of u� lity contribu� on tothe General Fund may not exceed 10% of the enterprise fund’s es� mated opera� ng revenues and is determined byapplying an established percentage against each enterprise fund’s charges for services excluding surchargerevenue, gross receipts tax, and franchise fees. In addi� on to the Annual Opera� ng Transfer, surcharge revenue,which is collected from customers outside the corporate limits at the same rate as Public Service Tax, is collected inthe Electric, Gas, and Water Funds and transferred to the General Fund. Transfers into the Capital Projects Fundwere associated with the following projects: facility/building improvements, and road resurfacing. Transfers madeinto the non-major governmental funds were associated with debt service payments.

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NOTE 6 - CAPITAL ASSETS

Capital asset ac� vity for the year ended September 30, 2016, was as follows:

A. Governmental Activities Beginning Ending

Governmental Activities Balances Increases Decreases Balances Capital Assets Not being Depreciated: Land $ 4,919,748 $ 20,045 $ - $ 4,939,793 Construc� on in Progress 517,650 3,293,756 2,952,088 859,318 Total Capital Assets Not Being Depreciated 5,437,398 3,313,801 2,952,088 5,799,111

Capital Assets Being Depreciated: Buildings 35,974,875 164,519 54,749 36,084,645 Improvements Other than Buildings 8,898,381 135,868 34,911 8,999,338 Equipment 28,545,069 2,731,966 869,335 30,407,700 Infrastructure (Roads and Streets) 38,002,237 273,430 - 38,275,667 Total Capital Assets Being Depreciated 111,420,562 3,305,783 958,995 113,767,350

Less Accumulated Deprecia� on for: Buildings 11,128,740 690,334 24,363 11,794,711 Improvements Other than Buildings 4,576,436 393,836 34,911 4,935,361 Equipment 24,661,449 1,338,670 856,020 25,144,099 Infrastructure (Roads and Streets) 25,182,691 1,238,799 - 26,421,490 Total Accumulated Deprecia� on 65,549,316 3,661,639 915,294 68,295,661

Total Capital Assets Being Depreciated, Net 45,871,246 (355,856) 43,701 45,471,689

Governmental Activities Capital Assets, Net $ 51,308,644 $ 2,957,945 $ 2,995,789 $ 51,270,800

B. Business-type ActivitiesAdjusted

Beginning Beginning Ending Business-type Activities Balances Reclassi� ca� ons Balances Increases Decreases Balances Capital Assets Not being Depreciated: Land $ 15,958,506 $ - $ 15,958,506 $ - $ - $ 15,958,506 Construc� on in Progress 7,321,117 - 7,321,117 11,509,750 8,757,163 10,073,704 Total Capital Assets Not Being Depreciated 23,279,623 - 23,279,623 11,509,750 8,757,163 26,032,210

Capital Assets Being Depreciated: Buildings 41,881,275 128,380 42,009,655 307,723 1,147,522 41,169,856 Improvements Other than Buildings 239,587,757 16,185,653 255,773,410 7,923,933 7,517,584 256,179,759 Intangible Assets 786,424 - 786,424 - - 786,424 Equipment 37,776,248 2,669,888 40,446,136 619,041 199,580 40,865,597 Total Capital Assets Being Depreciated 320,031,704 18,983,921 339,015,625 8,850,697 8,864,686 339,001,636

Less Accumulated Deprecia� on for: Buildings 10,721,550 128,380 10,849,930 875,205 259,316 11,465,819 Improvements Other than Buildings 81,942,095 16,185,653 98,127,748 6,836,245 7,506,003 97,457,990 Intangible Assets 210,590 - 210,590 39,884 - 250,474 Equipment 24,522,391 2,669,888 27,192,279 1,364,589 93,147 28,463,721 Total Accumulated Deprecia� on 117,396,626 18,983,921 136,380,547 9,115,923 7,858,466 137,638,004

Total Capital Assets Being Depreciated, Net 202,635,078 - 202,635,078 (265,226) 1,006,220 201,363,632

Business-type Capital Assets, Net $ 225,914,701 $ - $ 225,914,701 $ 11,244,524 $ 9,763,383 $ 227,395,842

Reclassi� ca� ons of assets were made to properly re� ect replacements of re� red assets.

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C. Depreciation Expense

Depreciation Expense-Governmental ActivitiesGeneral Government and Administra� on $ 461,814 Public Safety 290,454 Physical Environment 4,382 Transporta� on 1,018,647 Economic Environment 158,668 Culture and Recrea� on 822,137 Fleet Services 905,537 Total Depreciation Expense-Governmental Activities $ 3,661,639

Depreciation Expense-Business-type ActivitiesElectric U� lity $ 3,947,566 Gas U� lity 435,538 Water U� lity 1,272,081 Wastewater U� lity 1,547,786 Airport U� lity 1,384,027 Stormwater 186,187 Solid Waste U� lity 22,730 Communica� on Services 320,008 Total Depreciation Expense-Business-type Activities $ 9,115,923

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NOTE 7 -PURCHASED POWER AGREEMENTS

A. Florida Municipal Power AgencyThe City is a member of the Florida Municipal Power Agency (FMPA). FMPA was created pursuantto Florida statutes Chapter 163, Part I and Chapter 361, Part II (The Florida Interlocal Coopera� onAct of 1969 and The Joint Electric Power Supply Projects Act) to, among other things, provide ameans for the Florida municipal corpora� ons to cooperate with each other to provide for theirpresent and projected energy needs. The City has limited oversight authority over the opera� on ofFMPA. This oversight is manifested through the appointment of one vo� ng member to the31-member Board of Directors of FMPA and one vo� ng member to the FMPA All-RequirementsProject 13-member Execu� ve Commi� ee. Furthermore, the City, by the terms of FMPA’s projectagreements, has no equity interest in any of the assets owned by FMPA. The City par� cipates in thefollowing FMPA projects:

1. St. Lucie No. 2 Power Purchase AgreementThe City, through FMPA’s joint ownership agreement with Florida Power and Light Corpora� onhas an en� tlement share to a small por� on of the output of the St. Lucie No. 2 nuclear powerplant. The City’s en� tlement share totaled 2.1 megawa� s of genera� ng capacity from the St.Lucie No. 2 nuclear power plant. The annual en� tlement shares amount is based on the City’spercent par� cipa� on in the St. Lucie FMPA Project applied to the output of the plant over thesame period. The opera� ng license for Unit No. 2 is due to expire in 2043.

2. All-Requirement Power Supply Project AgreementThe City has an agreement with FMPA whereby the City purchases all of its electric power fromFMPA on an all-requirement basis over and above the City’s en� tlement share of the St. LucieNo. 2 output. The agreement remains in e� ect on an evergreen 30 year basis. FMPA’s powersupply rates are subject to a super majority vote of the Execu� ve Commi� ee of FMPA.

B. Florida Gas UtilityFlorida Gas U� lity (FGU) was established between and among several Florida municipal en� � es forthe purpose of achieving savings through joint services. There are currently 22 members. Amongthe services u� lized by the City are coordina� on and management of � rm and interrup� bletransporta� on en� tlements, the purchase of gas, the performance of gas � ow balancing betweenFGU members and customers receipt and delivery points, large customer bill reviews, and projectconsulta� on and management. FGU is governed by its Board of Directors, which consists of onerepresenta� ve from each member organiza� on.

Leesburg purchases � rm transporta� on services from Florida Gas Transmission (FGT) pursuant totwo contracts. FTS-1 provides for a maximum annual quan� ty of 1,614,435 Dth. FTS-2 provides fora maximum annual quan� ty of 182,500 Dth. These contracts have been assigned to FGU tofacilitate day-to-day scheduling and management of the City’s gas needs.

Sabal Trail is a transporta� on organiza� on similar to FGT. Leesburg will eventually enter into anagreement for either interrup� ble or � rm transporta� on services with Sabal Trail. FGU will managethese contracts and gas purchases in a similar manner to their current agreement with Leesburg.

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NOTE 8 –LONG-TERM LIABILITIES

A. Long-term liability activity for the year ended September 30, 2016, was as follows:

AmountsBeginning Ending Due WithinBalance Increases Decreases Balance One Year

Governmental Activities:Revenue Bonds: Tax Increment Rev Bonds - 2009 $ 14,170,000 $ - $ 235,000 $ 13,935,000 $ 240,000 Capital Improve Refunding Rev Bonds - 2013 14,330,000 - 505,000 13,825,000 515,000 Total Revenue Bonds 28,500,000 - 740,000 27,760,000 755,000 Notes Payable: Note Payable - 2008 Carver Heights CRA 293,598 - 293,598 - - Note Payable - 2009 Magnolia Townhomes 1,890,000 - 930,000 960,000 960,000 Note Payable - 2009 Capital Improve Rev 5,127,400 - 240,000 4,887,400 255,000 Note Payable - 2015 Greater Leesburg CRA 1,000,000 - 52,000 948,000 74,000 Total Revenue Notes 8,310,998 - 1,515,598 6,795,400 1,289,000 Total Revenue Bonds and Notes 36,810,998 - 2,255,598 34,555,400 2,044,000 Other Liabili� es: Compensated Absences 1,410,815 1,388,371 1,378,082 1,421,104 781,607 Capital Lease Payable 84,668 - 41,464 43,204 43,204 Net Pension Liability 7,546,741 1,472,401 - 9,019,142 - Other Postemployment Bene� ts 9,234,304 692,006 - 9,926,310 - Total Other Liabili� es 18,276,528 3,552,778 1,419,546 20,409,760 824,811 Total Governmental Ac� vi� es $ 55,087,526 $ 3,552,778 $ 3,675,144 $ 54,965,160 $ 2,868,811

Business-type Activities:Revenue Bonds: U� lity System Rev Bond - Series 2007A $ 20,340,000 $ - $ 19,495,000 $ 845,000 $ 415,000 U� lity System Rev Bond - Series 2007B 945,000 - 30,000 915,000 30,000 Electric System Rev Bond - Series 2007A 11,265,000 - 11,265,000 - - Electric System Rev Bond - Series 2007B 9,790,000 - 390,000 9,400,000 405,000 U� lity System Refund Rev Bonds - 2013 19,640,000 - 675,000 18,965,000 695,000 Electric System Refund Rev Bonds - 2016 - 19,290,000 - 19,290,000 - U� lity System Refund Rev Bonds - 2016 - 18,115,000 - 18,115,000 - Add: Premium, Less: Discount 891,451 4,260,103 186,970 4,964,584 - Total Revenue Bonds 62,871,451 41,665,103 32,041,970 72,494,584 1,545,000 Notes Payable: Capital Improve Rev Refunding Note - 2009 555,000 - 105,000 450,000 105,000 U� lity System Rev Refunding Note - 2010 7,305,000 - 545,000 6,760,000 565,000 Electric System Refunding Rev Note - 2013 8,643,000 - 8,643,000 - - Electric System Refunding Rev Note - 2014 14,488,000 - 14,488,000 - - Electric System Refunding Rev Note - 2016 - 8,318,000 - 8,318,000 387,000 Total Revenue Notes 30,991,000 8,318,000 23,781,000 15,528,000 1,057,000 Total Revenue Bonds and Notes Payable 93,862,451 49,983,103 55,822,970 88,022,584 2,602,000 Other Liabili� es: CR#3 Decommissioning Cost Payable 6,946,584 - 6,946,584 - - Land� ll Post Closure Payable 189,446 - 62,012 127,434 63,717 Compensated Absences 1,008,812 758,743 811,208 956,347 525,990 Net Pension Liability 2,426,779 488,980 - 2,915,759 - Other Postemployment Bene� ts 4,097,573 341,567 - 4,439,140 - Total Other Liabili� es 14,669,194 1,589,290 7,819,804 8,438,680 589,707 Total Business-type Activities $ 108,531,645 $ 51,572,393 $ 63,642,774 $ 96,461,264 $ 3,191,707

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B. The following is a schedule of bonds and notes outstanding at September 30, 2016:

Description of Bonds/Notes Purpose of Issue Issued Outstanding RatesGovernmental ActivitiesRevenue Bonds and Revenue Notes:Tax Increment Bonds - 2009 Hwy 441/27 CRA Capital Improvement $ 14,605,000 $ 13,935,000 2%-5%Magnolia Townhomes Note - 2009 Capital Improvement 4,500,000 960,000 3.40%Capital Improvement Revenue Note - 2009 Capital Improvement 6,227,400 4,887,400 4.73%Capital Improvement Refunding Revenue Bonds - 2013 Capital Improvement 15,345,000 13,825,000 .4%-3.78%Note Payable - Greater Leesburg CRA -2015 Capital Improvement 1,000,000 948,000 - Total Governmental Activities $ 41,677,400 $ 34,555,400

Business-type ActivitiesElectric System Revenue Bond - 2007B Electric $ 11,710,000 $ 9,400,000 5.64% - 5.90%Electric System Refunding Revenue Note - 2016 Electric 8,318,000 8,318,000 2.35%Electric System Refunding Revenue Bonds - 2016 Electric 19,290,000 19,290,000 2.00% - 5.00%U� lity System Revenue Bond - 2007A Gas/Water/Wastewater 22,425,000 845,000 4.00% - 5.00%U� lity System Revenue Bond - 2007B Wastewater 1,070,000 915,000 5.90%U� lity System Revenue Refunding Note - 2010 Water/Wastewater 8,000,000 6,760,000 3.85%U� lity System Refunding Revenue Bonds - 2013 Gas/Water/Wastewater 21,010,000 18,965,000 2.00% - 5.00%U� lity System Refunding Revenue Bonds - 2016 Gas/Water/Wastewater 18,115,000 18,115,000 2.00% - 5.00%Capital Improvement Revenue Refunding Note - 2009 Fiber Op� c Cable 1,005,000 450,000 4.13%Total Business-type Activities $ 110,943,000 $ 83,058,000

C. Debt service to maturity on the City’s bonded indebtedness and notes payable are as follows:

Bonds Payable

Governmental Activities Business-type ActivitiesFiscal Year Principal Interest Principal Interest

2017 $ 755,000 $ 1,158,982 $ 1,545,000 $ 2,434,587 2018 780,000 1,134,307 1,990,000 2,690,591 2019 805,000 1,108,182 2,080,000 2,619,164 2020 940,000 1,081,132 2,145,000 2,544,300 2021 970,000 1,046,057 2,230,000 2,451,309

2022-2026 6,315,000 4,473,257 12,735,000 10,657,532 2027-2031 8,155,000 2,975,010 15,725,000 7,498,692 2032-2036 9,040,000 1,097,855 19,755,000 3,840,067 2037-2038 - - 9,325,000 306,075

Total $ 27,760,000 $ 14,074,782 $ 67,530,000 $ 35,042,317

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Notes Payable

Governmental Activities Business-type ActivitiesFiscal Year Principal Interest Principal Interest

2017 $ 1,289,000 $ 267,973 $ 1,057,000 $ 416,003 2018 342,000 237,158 1,115,000 420,629 2019 359,000 221,999 1,148,000 383,037 2020 376,000 206,072 1,189,000 344,148 2021 388,000 189,496 1,104,000 306,425

2022-2026 2,215,000 672,717 6,081,000 960,085 2027-2031 1,826,400 169,398 2,674,000 296,335 2032-2036 - - 1,160,000 27,425

Total $ 6,795,400 $ 1,964,813 $ 15,528,000 $ 3,154,087

D. Governmental Activities Liabilities

A summary of all governmental ac� vi� es long-term debt as of September 30, 2016, except for Net PensionLiability (Note 12) and Other Postemployment Bene� ts (Note 14), is as follows:

1. Tax Increment Revenue Bonds, Series 2009On October 12, 2009, the City issued U.S. Highway 441 & 27 CRA Tax Increment Revenue Bonds in theamount of $14,605,000 pursuant to Resolu� on No. 10 adopted by the CRA and Resolu� on No. 8525adopted by the City. Bond proceeds have been used to � nance the costs of under grounding electricu� lity lines, reloca� on of the City owned electrical distribu� on and other u� lity lines, relatedimprovements within the boundaries of the Agency and to re� re the outstanding balance of the City ofLeesburg, Florida Subordinate Capital Improvement Bond An� cipa� on Note, Series 2008. The bondsare secured by tax increment revenues and a covenant to budget and appropriate from legallyavailable non-ad valorem revenues. The bond resolu� ons provide for debt service reserve accounts.

2. Magnolia Townhomes Note – 2009On November 3, 2009, the City signed a note in the amount of $4,500,000 to be used solely tore� nance the City’s outstanding Capital Improvement Bond An� cipa� on Note (BAN), Series 2006. Thenote is secured by a covenant to budget and appropriate from legally available non-ad valoremrevenues.

3. Capital Improvement Revenue Refunding Note – 2009On December 4, 2009, the City signed a promissory note in the amount of $6,227,400 which was usedto refund its Capital Improvement Revenue Bonds, Series 1999. Although the debt was refunded, theDebt Service Delivery Agreement for the Capital Improvement Bonds, 1999 con� nues in force un� l theSeries 2009 is paid. The note is secured by a pledge of the proceeds of the local government half-centsales tax, the guaranteed en� tlement por� on of state revenue sharing funds and a covenant to budgetand appropriate from legally available non-ad valorem revenues.

4. Capital Improvement Revenue Refunding Bonds, Series 2013On May 2, 2013, the City issued bonds in the amount of $15,345,000 pursuant to Resolu� on No. 9182. The 2013 Bonds are a refunding of the Capital Improvement Bonds, 2004, are fully registered bondsand are collateralized by a pledge of the proceeds of the local government half-cent sales tax, theguaranteed en� tlement por� on of state revenue sharing funds, the public service tax and investmentincome earned on trust funds held for bond holder.

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5. Greater Leesburg Community Redevelopment Agency Note – 2015On January 12, 2015, the Greater Leesburg Community Redevelopment Agency (the “Agency”)authorized the issuance of its Redevelopment Revenue Note, Series 2015, pursuant to Resolu� onNo. 31. Also on January 12, 2015 the City signed a loan agreement with Ci� zens First Bank in theamount of $1,000,000 pursuant to Resolu� on No. 9533. The proceeds were used to � nance theacquisi� on, construc� on and improvements of streets, undergrounding and replacement of allelectric, water, wastewater, storm water and � ber op� c reloca� on on Main Street from U.S. 27 to9th Street, all within the Community Redevelopment Area of the Agency. The note is secured byPledged Revenues of the Agency.

6. Compensated AbsencesCompensated absences reported as governmental ac� vi� es in the Statement of Net Posi� on areliquidated by the General Fund and the building permits special revenue fund.

7. Capital LeaseDuring 2008, the City signed a lease-purchase agreement with Mine Safety Appliances Company. The lease, in the amount $376,725, is being used to � nance the purchase of breathing apparatusesfor the Fire Rescue Department. The lease is to be paid within ten years at an imputed interestrate of 4.2% and will be paid in full in 2017. One lease payment of $45,020 remains and is due onApril 15, 2017.

E. Business-type Activities Liabilities

A summary of all business-type ac� vi� es long-term debt as of September 30, 2016, except for Net PensionLiability (Note 12) and Other Postemployment Bene� ts (Note 14), is as follows:

1. Electric System Revenue Bonds, 2007BThe City has issued $11,710,000 in Electric System Revenue Bonds, Taxable Series 2007B. Theissue is fully registered. The bonds are payable solely from the net revenues of the Electric Systemon parity with the City’s outstanding Electric System Revenue Note, Series 2013. The Series 2007Bbonds are subject to early redemp� on prior to maturity. The bond resolu� ons provide for asinking fund.

2. Electric System Refunding Revenue Note – 2016On June 16, 2016, the City issued a note in the amount of $8,318,000 pursuant to Resolu� on No.9816. Proceeds from the note were used to refund the Electric System Refunding RevenueNote—2013 and to pay costs of issuing the note. The note is payable from and secured solely bynet revenues of the City’s electric system on parity with the City’s outstanding Electric SystemRevenue Bonds, Series 2007B as well as the Electric System Refunding Revenue Bonds, Series 2016.The note bears interest at 2.35%, with the � nal payment due October 1, 2032. The refundingresulted in a cash � ow savings of $489,766 and a net present value savings of $385,112.

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3. Electric System Refunding Revenue Bonds – 2016On June 23, 2016, the City issued bonds in the amount of $19,290,000 pursuant to Resolu� on Nos.9792 and 9793. Proceeds from the bonds were used to refund the Electric System Revenue Bonds,Series 2007A and the Electric System Refunding Revenue Note—2014, and to pay costs of issuingthe bonds. City funds of approximately $4,990,000 were also used in connec� on with therefunding of the aforemen� oned debt. The bonds were issued at a premium, with an e� ec� veinterest rate of 2.56%. The bonds are payable from and secured solely by net revenues of theCity’s electric system on parity with the City’s outstanding Electric System Revenue Bonds, Series2007B as well as the Electric System Refunding Revenue Note, Series 2016. The refundings resultedin cash � ow savings of $10,344,178 and net present value savings of $7,866,021.

4. Utility System Revenue Bonds, Series 2007A and 2007BThe City has issued $22,425,000 and $1,070,000, respec� vely, in U� lity System Revenue Bonds,Series 2007A and Taxable Series 2007B. Both issues are fully registered. Bonds are payable solelyfrom the net revenues of the gas, water, and wastewater systems on parity with the City’soutstanding U� lity System Revenue Refunding Note – 2010, U� lity System Refunding RevenueBonds, Series 2013 and U� lity System Refunding Revenue Bonds, Series 2016. The Series 2007bonds are subject to early redemp� on prior to maturity. The bond resolu� ons provide for asinking fund. On June 22, 2016, the City issued bonds to refund all of the Series 2007A maturingon or a� er October 1, 2018. The remaining amounts of these bonds in the City’s � nancialsrepresent the October 1, 2016 and October 1, 2017 amounts due, which were not refunded.

5. Utility System Revenue Refunding Note – 2010On July 8, 2010, the City issued an $8,000,000 note to be used solely to re� nance the City’s BondAn� cipa� on Note (BAN), 2006. The original BAN was used to acquire a water and wastewateru� lity system from the Planta� on of Leesburg Limited Partnership. The note is payable solely fromthe net revenues of the gas, water, and wastewater systems on parity with the City’s outstandingU� lity System Revenue Bonds, Series 2007A and Series 2007B, U� lity System Refunding RevenueBonds, Series 2013 and U� lity System Refunding Revenue Bonds, Series 2016.

6. Utility System Refunding Revenue Bonds, Series 2013 On April 30, 2013, the City issued bonds in the amount of $21,010,000 pursuant to Resolu� on No.9184. Proceeds from the bonds were used to refund the U� lity System Revenue Bonds – 2004.The Bonds are fully registered bonds and are collateralized by a pledge of the net gas, water, andwastewater system revenues on parity with the City’s outstanding U� lity System Revenue Bonds,Series 2007A and 2007B, U� lity System Revenue Refunding Note – 2010, and U� lity SystemRefunding Revenue Bonds, Series 2016. Bond ordinances provide for a current sinking fund andthe bonds are callable at various dates at 100% of face value.

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7. Utility System Refunding Revenue Bonds – 2016On June 22, 2016, the City issued bonds in the amount of $18,115,000 pursuant to Resolu� on Nos.9794 and 9795. Proceeds from the bonds were used to refund the U� lity System Revenue Bonds,Series 2007A maturing on or a� er October 1, 2018, and to pay the costs of issuing the bonds. Thebonds were issued at a premium, with an e� ec� ve interest rate of 2.38%. Bonds are payablesolely from the net revenues of the gas, water, and wastewater systems on parity with the City’soutstanding U� lity System Revenue Bonds, Series 2007A and 2007B, U� lity System RevenueRefunding Note – 2010, and U� lity System Refunding Revenue Bonds, Series 2013. The refundingresulted in a cash � ow savings of $4,128,788 and a net present value savings of $3,147,367.

8. Capital Improvement Revenue Refunding Note – 2009On October 2, 2009, the City signed a note in the amount of $1,005,000 used solely to re� nancethe note payable to the Florida Municipal Power Agency (FMPA). The note is secured by theCommunica� ons Enterprise revenues.

9. Estimated Landfill Closure and Postclosure Care CostsThe City closed its present land� ll site on September 1, 1995, at a total cost of $3,326,000. Thecost of the closure was � nanced by user fees over the useful life of the land� ll. As required bystate law, the City is now performing postclosure monitoring ac� vi� es.

Balance, September 30, 2015 $ 189,446 Adjustment of Es� mate 20,265 Total Annual Costs Paid (82,277)Balance, September 30, 2016 127,434 Current Maturi� es (63,717)Total Long-Term Portion $ 63,717

The $127,434 liability recorded represents the es� mated costs of post-closure care for theremaining two years as required by state and federal laws and regula� ons. This amount wascalculated by the City's consul� ng engineer. The actual costs may be higher due to in� a� on,changes in technology, or changes in regula� ons.

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The City is required to deposit adequate funds into an escrow account before year-end to meetpostclosure care costs for the following year. During the year ended September 1992, the Cityestablished an escrow sub-account within the City's pooled cash system for this purpose. Thefollowing is a schedule of the transac� ons in this account during � scal year 2016:

Balance, September 30, 2015 $ 90,498 Investment Income (Loss) October 31, 2015 73 November 30, 2015 396 December 31, 2015 69 January 31, 2016 877 February 29, 2016 36 March 31, 2016 44 April 30, 2016 18 May 31, 2016 54 June 30, 2016 79 July 31, 2016 41 August 31, 2016 73 September 30, 2016 68 Balance, September 30, 2016 $ 92,326

Escrow funds in the amount of $92,326 remain on deposit with SunTrust Bank in accordance withthe escrow agreement dated January 15, 2009. The above schedule was prepared in accordancewith the requirements of Rule 62, 701.630 of the Florida Administra� ve Code.

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F. Pledged Revenues

The City pledged certain revenues to repay certain bonds and notes outstanding as of September 30,2016. The following table reports the revenues pledged for each debt issue, the amounts of suchrevenues received in the current year, the current year principal and interest paid on the debt, theapproximate percentage of each revenue which is pledged to meet the debt obliga� on, the datethrough which the revenue is pledged under the debt agreement, and the total pledged futurerevenues for each debt, which is the amount of the remaining principal and interest on the bonds andnotes at September 30, 2016:

GovernmentalGas U� lity Tax Increment Revenues5 Debt Service

Half Cent Guaranteed Public Fund Payments Un� l Pledged

Debt Descrip� on Sales Tax1,8 En� tlement2 Service Tax3 Transfer4 GLCRA 441/27CRA6 Debt Maturity Through2009 Capital Improvement Refunding Promissory Note $ 476,850 $ 6,676,281 2030 2013 Capital Improvement Bonds 755,244 $ 261,319 19,161,655 2035 2009 Capital Improvement Promissory Note (Magnolia) $ 978,450 976,320 2017 2015 Greater Leesburg (GL) CRA Note $ 80,343 1,107,612 2026 2009 Tax Increment Revenue Bonds (441/27 CRA) $ 47,915 $ 855,504 22,673,127 2036

Total Debt Service $ 1,232,094 $ 309,234 $ 855,504 $ 978,450 $ 80,343 $ - $ 50,594,995

Total pledged revenues available for � scal year 2016 debt service $ 1,232,094 $ 309,234 $ 3,640,419 $ 978,450 $ 300,945 $ - Total pledged revenues used for fi cal year 2016 debt service 1,232,094 309,234 855,504 978,450 80,343 - Fiscal year 2016 pledged revenues used as a percentage of revenues available 100.00% 100.00% 23.50% 100.00% 26.70% 0.00%

1Gross Sales Tax Revenues are defi ed pursuant to Resolu� on 5725 adopted August 12, 1999, as the proceeds of the local government half-cent sales tax as described inTitle XIV, Chapter 218, Part VI Florida Statutes.2Guaranteed En� tlement - is the por� on of State Revenue Sharing funds available to the City that are assigned, pledged, or set aside as a trust for the payment of principalor interest on the bonds pursuant to Title XIV, Chapter 218, Part II, Florida Statutes.3Public Service Tax is levied and collected pursuant to Sec� on 166.231, Florida Statutes. A municipality may levy a tax on the purchase of electricity, metered natural gas,liquefi d petroleum gas and water service not to exceed ten percent (10%) of the payments received by the seller.4Gas U� lity Fund Special Transfer - the debt service payment of $978,450 is covered by this special transfer.5Tax Increment Revenues of the Community Redevelopment Agencies for the Greater Leesburg CRA and the U.S. Highway 441 & 27 CRA are the generally applicable taxesa� ributable to increases in assessed values within the redevelopment areas of the respec� ve Agencies.6Due to the decrease in property values, the US Highway 441 & 27 CRA debt service payment is being paid from the bond proceeds in accordance with bond covenants.

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Business-typeTotal Gas,

Water, Communi- Debt ServiceElectric Gas Water Wastewater Wastewater cations Payments Until Pledged

Debt Description Revenues1 Revenues2 Revenues2 Revenues2 Revenues Revenues3 Debt Maturity Through2007 A U� lity System Revenue Bonds $ 126,450 $ 724,520 $ 266,082 $ 1,117,052 $ 879,907 2018 2007 B U� lity System Revenue Bonds 83,985 83,985 1,483,024 2034 2007 A Electric System Revenue Bonds $ 413,930 refunded in FY162007 B Electric System Revenue Bonds 942,429 14,145,234 2032 2013 U� lity System Refunding Revenue Bonds 225,753 469,586 650,642 1,345,981 26,175,442 2035

2016 Electric System Refunding Revenue Bonds4 205,351 30,957,251 2038

2016 U� lity System Refunding Revenue Bonds5 21,973 125,899 46,237 194,109 28,931,459 2038 2009 Capital Improvement Revenue Note $ 123,946 488,203 2020 2010 U� lity System Revenue Note 111,380 384,116 309,765 805,261 8,142,921 2026 2013 Electric System Refunding Revenue Note 556,670 refunded in FY162014 Electric System Refunding Revenue Note 898,077 refunded in FY16

2016 Electric System Refunding Revenue Note6 57,013 10,050,962 2033 Total Debt Service $ 3,073,470 $ 485,556 $ 1,704,121 $ 1,356,711 $ 3,546,388 $ 123,946 $ 121,254,403

Total pledged revenues available for fi calyear 2016 debt service $ 14,168,488 $ 2,305,771 $ 4,402,348 $ 5,749,591 $ 12,457,710 $ 806,960 Total pledged revenues used for fi cal year2016 debt service 3,073,470 485,556 1,704,121 1,356,711 3,546,388 123,946 Fiscal year 2016 pledged revenues used as apercentage of revenues available 21.69% 21.06% 38.71% 23.60% 28.47% 15.36%

Definitions:Operation and Maintenance Expenses - de� ned as the cost of opera� on and maintenance as current expenses, paid or accrued, less deprecia� onand amor� za� on expense.Pledged Revenues and Net Revenues - de� ned as gross revenues less opera� on and maintenance expenses.Net Revenues and Pledged Revenues - de� ned as gross revenues less opera� on and maintenance expenses plus capacity charges.1Gross Revenues - de� ned pursuant to Resolu� on 7141 adopted June 14, 2004, as all income and earnings derived by the City from theownership, opera� on, leasing, or use of the Electric System, and investment income excluding capital expansion and system improvement grants.2Gross Revenues - de� ned pursuant to Resolu� on 7143 adopted June 14, 2004, as all income and earnings derived by the City from theownership, opera� on, leasing, or use of the U� lity System, and investment income excluding capital expansion and system improvement grants.3Gross Revenues - de� ned pursuant to Resolu� on 8511 adopted September 14, 2009 as the Communica� ons Enterprise Revenues set aside forthe payment of debt service on the Note.42016 Electric System Refunding Revenue Bonds - a refunding of the 2007A Electric System Revenue Bond and the 2014 Electric SystemRefunding Revenue Note52016 Utility System Refunding Revenue Bonds - a refunding of the 2007A U� lity System Revenue Bonds maturing on or a� er October 1, 201862016 Electric System Refunding Revenue Note - a refunding of the 2013 Electric System Refunding Revenue Note

G. Defeased Debt

Defeased debt of the City that remains publicly traded is as follows:

U� lity System Refunding Revenue Bonds, Series 1999 A/B $ 17,335,000 Electric System Revenue Bonds, Series 2007A 11,265,000 U� lity System Revenue Bonds, Series 2007A 19,100,000

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NOTE 9 – CONDUIT DEBT

The City issued conduit debt to provide � nancial assistance to private-sector en� � es for the acquisi� onand construc� on of hospital facili� es deemed to be in the public interest. Conduit debt refers to certainlimited-obliga� on revenue bonds or similar debt instruments issued by the City for the express purposeof providing capital � nancing for a speci� c nongovernmental third party. Although conduit debt bearsthe name of the City as issuer, it is collateralized by the resources provided by the loan with the thirdparty on whose behalf they are issued. The City acts solely as a conduit issuer with respect to the debt.

Conduit debt is collateralized by the property � nanced and is payable solely from payments received onthe underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facili� estransfers to the private-sector en� ty servicing the bond issue. None of the assets or revenues of theCity are pledged to the payment of the bonds and under the cons� tu� on and laws of Florida, the Citymay not legally pledge any of its revenues or assets to the payment thereof. Neither the City, the state,nor any poli� cal subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabili� es in the accompanying � nancial statements.

As of September 30, 2016, the City had an aggregate principal amount of hospital revenue refundingbonds of approximately $94,375,000. The amount of bonds outstanding for Leesburg Regional MedicalCenter was $4,785,000. The amount of bonds outstanding for The Villages Tri-County Medical Centerwas $30,000,000. The amount of bonds outstanding for Leesburg Regional Medical Center and TheVillages Tri-County Medical Center as a combined en� ty was $59,590,000.

NOTE 10 – ARBITRAGE REBATE

In accordance with the Tax Reform Act of 1986, any interest earnings on borrowed construc� on fundsin excess of the interest costs are required to be rebated to the federal government.

There is no arbitrage rebate liability as of September 30, 2016.

NOTE 11– OPERATING LEASES

The City is lessor on various leases of facili� es located at the Leesburg Regional Airport and other leasesfor property owned by the City. Es� mated amounts for leased assets are: cost $10,310,454 andaccumulated deprecia� on $2,016,868. The following is a schedule of minimum future lease income onnon-cancelable opera� ng leases:

Fiscal Year Amount2017 $ 713,050 2018 677,094 2019 525,998 2020 467,389 2021 407,598

2022-2026 1,865,445 2027-2031 1,149,974

Total Minimum Lease Payments $ 5,806,548

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NOTE 12– DEFINED BENEFIT PENSION PLANS (PLAN)

A. Plan Descriptions and Contribution InformationThe City maintains three separate single-employer pension plans, a supplemental one for policeo� cers, one for � remen, and a general employees' re� rement plan that covers substan� ally allother full-� me City employees including police o� cers. These plans are maintained as pensiontrust funds and included as part of the City's repor� ng en� ty. City ordinance and state law requirescontribu� ons to be determined by actuarial studies. The City Commission has the authority toestablish and amend the bene� t provisions of the plans. Administra� ve costs are � nanced throughcontribu� ons and investment earnings.

B. Basis of Accounting

The plans � nancial statements are prepared using the accrual basis of accoun� ng. Plan membercontribu� ons are recognized in the period in which the contribu� ons are recorded with thecustodian. Bene� ts and refunds are recognized when due and payable in accordance with theterms of each Plan.

C. Methods Used to Value InvestmentsInvestments are reported at fair value. Securi� es traded on a na� onal or interna� onal exchangeare valued at the last reported sales price at current exchange rates. Investments that do not havean established market are reported at es� mated fair value.

For � nancial statement purposes, plan assets are valued at market value for the GeneralEmployees', Municipal Police O� cers' and Municipal Firemen's plans, as reported within the annualtrustee statements. Because the plans do not issue stand-alone GAAP � nancial reports, thefollowing individual � nancial reports are presented for each of the plans:

General Municipal MunicipalEmployees' Police Officers' Firemen'sRetirement Retirement Retirement

Plan Plan Plan TotalAssets Cash $ 5,695 $ 195 $ (540) $ 5,350 Investments, at Fair Value: U.S. Government Securi� es 4,228,750 2,222,485 758,034 7,209,269 Corporate Bonds 1,521,319 1,956,508 3,471,889 6,949,716 Corporate Stocks 18,282,599 3,325,796 4,965,485 26,573,880 Alterna� ve Investments 7,988,477 1,684,976 2,255,622 11,929,075 Money Market 239,541 567,765 754,517 1,561,823 Mutual Funds 2,630,096 8,082,360 5,238,324 15,950,780 Total Investments 34,890,782 17,839,890 17,443,871 70,174,543

Interest Receivable 70,653 - 39,314 109,967 Total Assets $ 34,967,130 $ 17,840,085 $ 17,482,645 $ 70,289,860

Net Position Restricted for Employees' Pension Benefits $ 34,967,130 $ 17,840,085 $ 17,482,645 $ 70,289,860

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SCHEDULE OF THE CHANGE IN PENSION PLAN NET POSITION AS OF SEPTEMBER 30, 2016General Municipal Municipal

Employees' Police Officers' Firemen'sRetirement Retirement Retirement

Plan Plan Plan TotalAdditions Contribu� ons: Employer $ 1,166,446 $ 252,833 $ 539,866 $ 1,959,145 State - 183,761 150,584 334,345 Employee - 277,064 163,470 440,534 Total Contribu� ons 1,166,446 713,658 853,920 2,734,024 Investment Income: Net Increase (Decrease) in Fair Value of Investments 2,326,655 655,501 1,188,639 4,170,795 Interest and Dividend Income 592,030 385,381 476,471 1,453,882 Other Income 12,860 75,104 70,496 158,460 Less: Investment Expenses (180,396) (73,233) (89,754) (343,383) Total Investment Income 2,751,149 1,042,753 1,645,852 5,439,754 Total Additions 3,917,595 1,756,411 2,499,772 8,173,778

Deductions Bene� t Payments 2,607,910 883,060 1,096,329 4,587,299 Refund of Contribu� ons 92,573 77,500 127,999 298,072 Administra� ve Expense 70,197 51,051 45,302 166,550 Total Deductions (2,770,680) (1,011,611) (1,269,630) (5,051,921)Change in Plan Net Position 1,146,915 744,800 1,230,142 3,121,857 Net Position Restricted for Employees' Pension Benefits: Beginning of Year 33,820,215 17,095,285 16,252,503 67,168,003 End of Year $ 34,967,130 $ 17,840,085 $ 17,482,645 $ 70,289,860

All three plans provide re� rement, disability, and death bene� ts to plan members and theirbene� ciaries as described below:

1. General Employees’ Retirement Plan (GERP)

The General Employees’ Re� rement Plan was frozen as of September 30, 2008. Citycontribu� ons to the plan will con� nue un� l such � me as the pension obliga� on is fully funded. E� ec� ve October 1, 2008, ac� ve plan members no longer accrue bene� ts under this plan. Theplan is a 100% employer contributory de� ned bene� t plan and covers all full � me employeesexcept � remen. Par� cipants who have completed � ve years of credited service are fully vestedin the plan.

Plan Administra� on – The plan is administered by a Board of Trustees comprised of: (1) City ofLeesburg resident appointed by Commission, City Manager (or designee), Human ResourcesDirector, one other department head appointed by the City Manager, (2) Members of the planwho are not cer� � ed police o� cers and one member of the plan who is a cer� � ed policeo� cer.

Bene� ts Provided – The plan provides re� rement, termina� on, disability and death bene� ts.

Normal Re� rement – The a� ainment of age 65 with 5 years of credited service.

Bene� ts Provided – 2% of average compensa� on � mes credited service prior to October 1,2008, with a maximum of 45 years of credited service.

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Early Re� rement– A� ainment of age 50 with 15 years of credited service.

Bene� t – Accrued bene� t on early re� rement date, reduced 3.33% for each year that earlyre� rement precedes age 65.

Disability – Eligibility 10 years of credited service. Prior to early re� rement date, the bene� tpayable is the lesser of 50% of the average � nal compensa� on or $1,500. At normal re� rementdate, the bene� t payable is 2% � mes average � nal compensa� on � mes year and months ofcredited service as if employment had con� nued from date of disability to normal re� rementdate.

Pre-Re� rement Death Bene� t – The greater of (i) or (ii), where (i) is equal to the single-sumvalue, as of the date of the par� cipant’s death, of the deferred monthly re� rement incomecommencing at normal re� rement date that the disabled par� cipant would have accrued to thedate of termina� on of service due to disability, and (ii) is the smaller of (a) 18 � mes average� nal compensa� on at the date of termina� on due to disability and (b) 100 � mes thepar� cipant’s an� cipated monthly re� rement income at normal re� rement.

Contribu� ons – Remaining amount required in order to pay current costs and amor� zeunfunded past service cost, if any, as provided in Chapter 112, Florida Statutes.

Termina� on of Employment – Ves� ng Schedule: Less than 5 years zero percent vested; � ve ormore years 100% vested.

Cost of Living Adjustment – Re� rees (other than vested terminated members) and theirbene� ciaries receive a 2% increase in bene� ts each year October 1st commencing 3 years a� ertheir otherwise Normal Re� rement Date.

Deferred Re� rement Op� on Program (DROP) - Eligibility: Sa� sfac� on of normal re� rement requirements. Par� cipa� on: Not to exceed 60 months.

Rate of Return: (1) Actual net rate of investment return (total return net of brokerage commissions, transac� on costs, and management fees) or (2) 6.5% per annum compounded quarterly.

The DROP balance as of September 30, 2016 is $0.

2. Municipal Police Officers’ Retirement Plan (MPRP)

The plan covers sworn police o� cers (other Police Department employees are covered in theGERP). Employees contribute 7.65% of their reportable W-2 compensa� on, less Christmasbonuses, but including lump sum payment of accrued sick leave, accrued annual leave, oraccrued compensatory leave, plus all tax deferred (IRC Sec� on 414(h) (2) and IRC Sec� on 457contribu� ons) and tax exempt (IRC Sec� on 125) items of income. E� ec� ve January 22, 2013,Salary shall not include more than 300 hours of over� me per year. The State of Florida collectsand remits a 0.85% excise tax on gross premiums from casualty insurance policies coveringproperty within the corporate limits to the fund pursuant to the provisions of Chapter 185.08,Florida Statutes.

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Plan Administra� on – The plan is administered by a Board of Trustees comprised of: two Cityresidents appointed by the City Commission, two police o� cers elected by a majority of policeo� cers and a � � h member elected by the Board and appointed by the City Commission.

Bene� ts Provided– The plan provides re� rement, termina� on, disability and death bene� ts.

Normal Re� rement– Earlier of (1) age 52 (Age 50 for Members eligible for Normal Re� rementas of October 31, 2015 under the prior provisions) and the comple� on of 25 years of creditedservice, or (2) age 55 and the comple� on of 10 years of credited service.

Bene� ts Provided– 3% of Average � nal compensa� on � mes credited service prior to May 27,2003; 2% for each year between May 27, 2003, and September 30, 2009; and 2.5% for eachyear of Credited Service between October 1, 2009 and September 30, 2015; and 3% for eachyear of Credited Service therea� er.

Early Re� rement– Age 50 (age 45 for members who will be eligible for early re� rement as ofOctober 1, 2015, under the prior provisions) and comple� on of 10 years of credited service.

Bene� t– Accrued bene� t, reduced 3% per year.

Disability– Total and permanent; medical proof required. Ten years of credited service requiredfor non-service incurred disability bene� t.

Bene� t– Service connected: greater of accrued bene� t or 50% of average � nal compensa� on. Non-service connected: greater of accrued bene� t or 25% of average � nal compensa� on.

Pre-Re� rement Death Bene� t– Service connected: Bene� ciary receives a monthly bene� t whichcan be provided by the greater of: 1) present value of member’s accrued bene� t, or 2) lesser of24 � mes the member’s average � nal compensa� on, or 100 � mes the member’s an� cipatednormal re� rement bene� t. Non-service connected: If less than 10 years of service, bene� ciaryreceives a refund of member contribu� ons; otherwise, same as service connected bene� ts.

Contribu� ons- Employee: 7.65% of basic compensa� on; remaining amount required in order topay current costs and amor� ze unfunded past service cost, if any, as provided in Chapter 112,Florida Statutes.

Deferred Re� rement Op� on Program (DROP)- Eligibility: Sa� sfac� on of Normal Re� rementrequirements.

Par� cipa� on: Not to exceed 60 months.

Rate of Return: Actual net rate of investment return (total return net of brokeragecommissions, transac� on costs, and management fees).

The DROP balance as September 30, 2016 is $208,850.

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3. Municipal Firemen's Retirement Plan (MFRP)

The plan covers � re� ghters who have completed one year of employment. Firemen contribute6.5% of their annual compensa� on to the Plan. The State of Florida collects and remits a 1.85%excise tax on gross premiums from � re insurance covering property within the corporate limitsto the fund pursuant to the provisions of Chapter 175.101, Florida Statutes.

Plan Administra� on – The plan is administered by a Board of Trustees comprised of: two cityappointees, two members of the department elected by the membership, and a memberelected by other 4 and appointed by the City Commission.

Bene� ts Provided– The plan provides re� rement, termina� on, disability and death bene� ts.

Normal Re� rement– Earlier of (1) age 52 and the comple� on of 25 years of credited service, or(2) age 55 and the comple� on of ten years of credited service.

Bene� ts Provided– 3% of average monthly earnings � mes credited service.

Early Re� rement– Age 50 and 10 years of credited service.

Bene� t– Accrued bene� t, reduced 3% for each year prior to normal re� rement date.

Disability– Total and permanent as determined by Board of Trustees, and for at least a period of5 months if not service-incurred. Not-line-of-duty bene� t amount: Less than 10 Years: Themonthly income which can be provided by the greater of (A) or (B), where: (A) is the actuarialpresent value of the accrued bene� t at date of disability, and (B) is two � mes the basiccompensa� on paid in the calendar year preceding date of disability, but no greater than theactuarial present value of 60% of the member’s an� cipated monthly re� rement income at theirnormal re� rement date. More than 10 Years: The monthly income which is the greater of (A) or(B), where: (A) is the monthly income which can be provided by the actuarial present value ofthe accrued bene� t at date of disability, and (B) is 30% of the par� cipant’s basic compensa� onpaid in the calendar year preceding date of disability, but no greater than the actuarial presentvalue of 100% of the member’s an� cipated monthly re� rement income at their normalre� rement date. Line-of-Duty Bene� t Amount: A monthly income equal to 50% of the basiccompensa� on paid in the calendar year preceding the date of disability. This amount is limitedto the actuarial present value of the member’s an� cipated monthly re� rement income at their normal re� rement date.

Pre-Re� rement Death Bene� t– The monthly income, payable to designated bene� ciary for 10years certain and life therea� er, which can be provided by the greater of (A) or (B), where: (A) isthe actuarial present value of the accrued bene� t at date of death, and (B) is two � mes theBasic Compensa� on paid in the calendar year preceding the date of death, but no greater thanthe actuarial present value of the member’s an� cipated monthly re� rement income at theirnormal re� rement date.

Contribu� ons- Employee: 6.5% of basic compensa� on; remaining amount required in order topay current costs and amor� ze unfunded past service cost, if any, as provided in Chapter 112,Florida Statutes.

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D. Membership

Membership of each Plan consisted of the following:

Membership as of: 10/01/15 10/01/15 10/01/15GERP MPRP MFRP

Re� rees and Bene� ciaries Receiving Bene� ts 228 33 30 Terminated Plan Members En� tled to But Not Yet Receiving Bene� ts 234 9 4 Ac� ve Plan Members 204 56 41 Total 666 98 75

E. Investment Policy

The following were the Boards' adopted asset alloca� on policies as of September 30, 2016:

GERP MPRP MFRPAsset Class Target Alloca� on Target Alloca� on Target Alloca� onDomes� c Equity 50% 45% 35%Interna� onal Equity 10% 15% 15%Broad Market Fixed Income 20% 20% 22%Global Fixed Income 0% 5% 0%TIPS 0% 5% 3%Conver� bles 0% 0% 10%Real Estate 10% 10% 7%Hedge Funds 10% 0% 0%REITS 0% 0% 3%MLPs 0% 0% 5%Total 100% 100% 100%

F. Concentrations

The three pension plans did not hold investments in any one organiza� on that represent � vepercent or more of the pension plans' � duciary net posi� on.

G. Rate of Return

GERP– For the year ended September 30, 2016 the annual money-weighted rate of return onpension plan investments, net of pension plan investment expense, was 8.31 percent.

MPRP – For the year ended September 30, 2016 the annual money-weighted rate of return onpension plan investments, net of pension plan investment expense, was 6.19 percent.

MFRP – For the year ended September 30, 2016 the annual money-weighted rate of return onpension plan investments, net of pension plan investment expense, was 10.27 percent.

The money-weighted rate of return expresses investment performance net of investmentexpense, adjusted for the changing amounts actually invested.

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H. Net Pension Liability of Sponsor

The components of the net pension liability of the sponsor of September 30, 2016 were asfollows:

GERP MPRP MFRP

Total Pension Liability $ 41,127,077 $ 19,783,809 $ 21,306,523

Plan Fiduciary Net Posi� on (34,967,109) (17,840,282) (17,475,117)Sponsor's Net Pension Liability $ 6,159,968 $ 1,943,527 $ 3,831,406 Plan Fiduciary Net Posi� on as a Percentageof Total Pension Liability 85.02% 90.18% 82.02%

Actuarial Assump� ons:

The measurement date is September 30, 2016 for all three pension plans. The measurement periodfor the pension expense was October 1, 2015 to September 30, 2016. The repor� ng period isOctober 1, 2015 through September 30, 2016.

The total pension liability for all plans was determined by an actuarial valua� on as of October 1,2015 updated to September 30, 2016 using the following actuarial assump� on applied to allmeasurement periods.

GERP MPRP MFRPIn� a� on 2% 3% 2.7%Salary Increases None (frozen) Service based 4%-6%Discount Rate 7.45% 7.65% 7.5%Investment Rate of Return 7.45% 7.65% 7.5%

Mortality rates for the General Employees' Fund was based on the RP-2000 Table, combinedhealthy, projected to valua� on date using scale AA. Mortality rates for the Police O� cers' Fundwas based on the RP-2000 Table with no projec� on - based on a study of over 650 public safetyfunds, the table re� ects a 10% margin for future mortality improvements. Mortality rates for theFiremen's Fund was based on the RP-2000 Table, combined healthy.

For the General Employees' Fund, actuarial assump� ons used in the October 1, 2015 valua� on werebased on the results of an actuarial experience study for the period 1999-2006. The actuarialassump� ons used for Police O� cers' Fund were based on the results of an actuarial experiencestudy dated September 13, 2016. The actuarial assump� ons used for Firemen's Fund were basedon the results of an actuarial experience study dated March 7, 2014.

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I. Long Term Expected Rate of Return—All Plans

The long-term expected rate of return on all pension plan investments was determined using abuilding-block method in which best-es� mate ranges of expected future real rates of return(expected returns, net of pension plan investment expenses and in� a� on) are developed for eachmajor asset class. These ranges are combined to produce the long term expected rate of return byweigh� ng the expected future real rates of return by the target asset alloca� on percentage and byadding expected in� a� on. Best es� mates of arithme� c real rates of return for each major assetclass included in the pension plan’s target asset alloca� on as of September 30, 2016 aresummarized in the following table:

GERP MPRP MFRP

Asset ClassLong Term Expected Real

Rate of ReturnLong Term Expected Real

Rate of ReturnLong Term Expected Real

Rate of ReturnDomes� c Equity 7.71% 7.50% 8.00%Interna� onal Equity 7.26% 8.50% 3.00%Broad Market Fixed Income 2.45% 2.50% 4.40%Global Fixed Income - 3.50% - TIPS - 2.50% 3.10%Conver� bles - - 6.40%Real Estate 3.58% 4.50% 4.60%Hedge Funds 2.80% - - REITS - - 7.00%MLPs - - 10.40%

J. Discount Rate

The discount rates used to measure the General Employees' pension liability was 7.45%, the PoliceO� cers’ pension liability was 7.65%, and the Firemen's pension liability was 7.50%.

The projec� on of cash � ows used to determine the discount rate assumed that plan membercontribu� ons will be made at the current contribu� on rate and the sponsor contribu� ons will bemade at rates equal to the di� erence between actuarially determined contribu� on rates and themember rate. Based on those assump� ons, the pension plan’s � duciary net posi� on was projectedto be available to make all projected future bene� t payments of current plan members. Therefore,the long-term expected rate of return on pension plan investments was applied to all periods ofprojected bene� t payment to determine the total pension liability.

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K. Net Pension Liability

General Employees' Plan

CHANGES IN NET PENSION LIABILITY

Increase (Decrease)Total Pension Plan Fiduciary Net Pension

Liability Net Posi� on LiabilityBalances at September 30, 2015 $ 38,963,325 $ 33,820,101 $ 5,143,224 Changes for the year: Service cost 141,911 - 141,911 Interest 2,831,625 - 2,831,625 Di� erences between expected and actual experience (22,731) - (22,731) Changes of assump� ons 1,913,430 - 1,913,430 Contribu� ons - employer - 1,166,446 (1,166,446) Net investment income - 2,751,242 (2,751,242) Bene� t payments, including refunds of employee contribu� ons (2,700,483) (2,700,483) - Administra� ve expense - (70,197) 70,197 Net changes 2,163,752 1,147,008 1,016,744 Balances at September 30, 2016 $ 41,127,077 $ 34,967,109 $ 6,159,968

Police Officers' Plan

CHANGES IN NET PENSION LIABILITYIncrease (Decrease)

Total Pension Plan Fiduciary Net PensionLiability Net Posi� on Liability

Balances at September 30, 2015 $ 17,840,214 $ 17,092,313 $ 747,901 Changes for the year: Service cost 531,469 - 531,469 Interest 1,386,584 - 1,386,584 Di� erences between expected and actual experience 615,885 - 615,885 Changes of assump� ons 370,217 - 370,217 Contribu� ons - employer - 255,920 (255,920) Contribu� ons - state - 183,761 (183,761) Contribu� ons - employee - 277,064 (277,064) Net investment income - 1,042,752 (1,042,752) Bene� t payments, including refunds of employee contribu� ons (960,560) (960,560) - Administra� ve expense - (50,968) 50,968 Net changes 1,943,595 747,969 1,195,626 Balances at September 30, 2016 $ 19,783,809 $ 17,840,282 $ 1,943,527

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Firemen's Plan

CHANGES IN NET PENSION LIABILITYIncrease (Decrease)

Total Pension Plan Fiduciary Net PensionLiability Net Posi� on Liability

Balances at September 30, 2015 $ 20,324,301 $ 16,241,906 $ 4,082,395 Changes for the year: Service cost 409,225 - 409,225 Interest 1,509,178 - 1,509,178 Share Plan Alloca� on 40,135 - 40,135 Di� erences between expected and actual experience (428,003) - (428,003) Changes of assump� ons 673,999 - 673,999 Contribu� ons - employer - 540,916 (540,916) Contribu� ons - State - 150,584 (150,584) Contribu� ons - employee - 163,470 (163,470) Net investment income - 1,636,931 (1,636,931) Bene� t payments, including refunds of employee contribu� ons (1,222,312) (1,222,312) - Administra� ve expense - (36,378) 36,378 Net changes 982,222 1,233,211 (250,989)Balances at September 30, 2016 $ 21,306,523 $ 17,475,117 $ 3,831,406

Sensitivity of NPL to changes in discount rate:

General Employees' Plan

1% Current 1%Decrease Discount Rate Increase

6.45% 7.45% 8.45%Plan's net pension liability $ 10,784,133 $ 6,159,968 $ 2,289,094

Police Officers' Plan


6.65% 7.65% 8.65%Plan's net pension liability $ 4,349,320 $ 1,943,527 $ (61,704)

Firemen's Plan


6.50% 7.50% 8.50%Plan's net pension liability $ 6,443,242 $ 3,831,406 $ 1,654,022

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Pension Expense and Deferred Inflows/Outflows of Resources Related to Pensions:

Pension expense at September 30, 2016 was: 1) General Employees' Plan $1,630,480; 2) Police O� cers'Plan $1,015,036; and 3) Firemen's Plan $924,817. On September 30, 2016, the City reported deferredou� lows of resources and deferred in� ows of resources related to pensions from the following sources:

General Employees' PlanDeferred Deferred

Ou� lows of In� ows ofResources Resources

Di� erences between actual and expected experience $ - $ 592,723 Changes of assump� ons 956,715 - Net Di� erence between projected and actual earnings 671,696 - Total $ 1,628,411 $ 592,723

Police Officers' PlanDeferred Deferred


Di� erences between actual and expected experience $ 492,708 $ 727,720 Changes of assump� ons 296,173 - Net Di� erence between projected and actual earnings 906,092 - Total $ 1,694,973 $ 727,720

Firemen's PlanDeferred Deferred


Di� erences between actual and expected experience $ - $ 547,445 Changes of assump� ons 561,665 - Net Di� erence between projected and actual earnings 473,423 - Total $ 1,035,088 $ 547,445

Deferred Inflows/Outflows Schedule for Future Years:

Amounts reported as deferred in� ows of resources related to pensions will be recognized in pensionexpense as follows:

Total year ended September 30:General

Employees' Police Officers' Firemen's 2017 $ 549,108 $ 257,162 $ 176,232 2018 185,115 257,161 176,231 2019 356,444 383,544 216,278 2020 (54,979) 69,386 (83,942) 2021 - - 2,844

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NOTE 13-DEFINED CONTRIBUTION PENSION PLAN

General employees of the City par� cipate in the 401(a) De� ned Contribu� on Pension Plan administered byMass Mutual Financial Group. The Plan was authorized by City Commission Resolu� on. New employeesbecome fully vested over a four-year period. For the year ended September 30, 2016, the City Commissionapproved a contribu� on rate of 5% of compensa� on. Total contribu� ons amounted to $699,915 or 100% ofthe amount authorized.

Employees may not contribute to the Plan. Investments in Plan assets are directed by individual employees.

NOTE 14- OTHER POSTEMPLOYMENT BENEFITS (OPEB)

In accordance with Chapter 112.0801, Florida Statutes, the City allows re� rees the op� on of con� nuing topar� cipate in the City's group health insurance coverage at a premium cost of no more than the premium costapplicable to ac� ve employees. The City provides postre� rement health care bene� ts, in accordance with Cityordinance, to all employees who re� re from the City with at least � � een years of con� nuous service. Bene� tprovisions for the Plan are established by the City Commission and may be amended by the City Commission. Employees re� ring before age � � y-� ve may remain in the City's plan and pay all premium costs. Employeeswho re� re between the ages of � � y-� ve and � � y-eight and con� nue health coverage will become eligible foremployer subsidized premiums at age � � y-eight. Employees re� ring on or a� er a� aining age � � y-eight withat least � � een years of service remain in the plan with all employee premiums paid by the City up to amaximum of $400 per month; if the cost to the City for health insurance coverage on the re� red employeeexceeds $400 per month, the re� ree will bear the cost over and above $400. This explicit City subsidy isavailable only for re� ree coverage and is not available in whole or in part as an explicit subsidy for spouse ordependent coverage. The plan does not issue a publicly available � nancial report.

Currently, the City’s OPEB bene� ts are unfunded. That is, there is no separate Trust Fund or equivalentarrangement into which the City would make contribu� ons to advance-fund the obliga� on. Therefore, theul� mate subsidies which are provided over � me are � nanced directly by general assets of the City. The Cityhad an actuarial valua� on for OPEB to measure the current year’s subsidies, project these subsidies fordecades into the future, and make an alloca� on of that cost to di� erent years. Membership of each planconsisted of the following:

Date of Actuarial Valuation: 10/01/2014Re� rees and Bene� ciaries Receiving Bene� ts 155 Ac� ve Plan Members 361 Total 516

A. Annual OPEB Costs and Net OPEB Obligation

The Annual OPEB Cost is the amount that was expensed for the � scal year. Since the City’s OPEB plan iscurrently unfunded, the o� set to that expense comes from subsidies paid on behalf of the current re� reesand their dependents for the current year. This o� set is called the Employer Contribu� on, and equals thetotal age-adjusted premiums paid by the City for coverage for the re� rees and their dependents for theyear (net of the re� ree’s own payments for the year).

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The cumula� ve di� erence between the Annual OPEB Cost for the year and the Employer Contribu� on forthe year is called the Net OPEB Obliga� on. The Net OPEB Obliga� on is re� ected as a liability in theStatement of Net Posi� on.

The following table shows the components of the City’s Annual OPEB Cost for the year and the Net OPEBObliga� on:

Annual Required Contribu� on (ARC) $ 2,650,336 Interest on Net OPEB Obliga� on (NOO) 533,275 Adjustment to ARC (843,056)Annual OPEB Cost 2,340,555 Employer Contribu� ons Made (1,306,982)Increase(Decrease) in NOO 1,033,573 Net OPEB Obliga� on, Beginning of Year 13,331,877 Net OPEB Obliga� on, End of Year $ 14,365,450

The Annual OPEB Cost per covered employee is $4,800 or approximately 10.9% of expected payroll. TheCity’s plan is a single-employer plan with no separately issued audited � nancials.

B. Schedule of Employer Contributions

PercentageFiscal Annual of Annual NetYear OPEB OPEB Cost OPEB

Ended Cost Contributed Obligation9/30/2016 $ 2,340,555 55.8% $ 14,365,450 9/30/2015 2,304,125 52.8% 13,331,877 9/30/2014 1,883,628 52.3% 12,245,168

C. Actuarial Methods and Assumptions

Projec� ons of bene� ts for � nancial repor� ng purposes are based on the substan� ve Plan (the Plan asunderstood by the employer and the Plan members) and include the types of bene� ts provided at the� me of the valua� on and the historical pa� ern of sharing of bene� t costs between the employer and Planmembers. The actuarial methods and assump� ons used include techniques that are designed to reducethe e� ects of short-term vola� lity in actuarial accrued liabili� es and the actuarial value of assets,consistent with the long-term perspec� ve of the calcula� ons.

D. Funded Status and Funding Progress

Actuarial valua� ons of an ongoing plan involve es� mates of the value of reported amounts andassump� ons about the probability of occurrence of events far into the future. Examples includeassump� ons of future employment, mortality, and the health care cost trend. Amounts determinedregarding the funding status of a plan and the annual required contribu� ons of the employer are subjectto con� nual revision as actual results are compared with past expecta� ons and new es� mates are madeabout the future.

116



Following is a schedule of funding progress:

Unfunded(Overfunded)

Actuarial Actuarial Actuarial Accrued Annual UAAL as aValuation Value of Accrued Liability Funded Covered Percentage of

Date Assets Liability (UAAL) Ratio Payroll Payroll10/1/2014 $ - $ 27,749,667 $ 27,749,667 0.0% $ 21,150,249 131.5%

This informa� on is helpful in determining whether the actuarial value of plan assets is increasing or decreasingrela� ve to the actuarial accrued liability for bene� ts over � me.

The following table summarizes the actuarial methods and assump� ons as of the latest actuarial valua� ondate:

Valuation Date October 1, 2014Actuarial Cost Method Entry Age NormalAmortization Method Level PercentageRemaining Amortization Period 22 Years, ClosedAsset Valuation Method Market ValueActuarial Assumptions: Investment Return - Rate of In� a� on - Payroll Growth - All Employees - Health Care In� a� on 7.25%

(decreasing 0.75% eachyear

un� l the ul� mate of 4.5%in Fiscal Year (2020)

117



NOTE 15- SELF-INSURANCE FUND

A. Employee Health Insurance FundThe City maintains a self-insurance program for the payment of employee health and medicalclaims. The program provides for the payment of City and employee contribu� ons into aself-insurance fund, which is managed by the City. The City self-funds individual employee claims upto $85,000 and total annual claim payments up to $5,000,000. The City purchases excess stop-lossinsurance that pays any por� on of a claim that exceeds $85,000, and if the total annual paid claimsexceed $5,000,000. The City employs a third party claims administrator to manage claims. Eachyear, an actuarial analysis of the Health Insurance Fund is conducted in order to assure the � nancialsoundness of this fund.

B. Workers' Compensation Insurance FundThe City maintains a self-insurance program for the payment of employee workers' compensa� onclaims. The program provides for City contribu� ons into a self-insurance fund which is managed bythe City. Employee claims up to $500,000 per occurrence are paid from the assets of theself-insurance fund with amounts in excess of $500,000 per occurrence being paid from areinsurance policy purchased by the City. The City employs a third party claims administrator tomanage claims. Each year, an actuarial analysis of the Workers’ Compensa� on Insurance Fund isconducted in order to assure the � nancial soundness of this fund.

Changes in claims liabili� es for the last two years follow:

Current YearBalance Claims and Balance

October 1, Changes in (Claims September 30,2015 Estimates Paid) 2016

Employee HealthInsurance Fund $ 465,304 $ 4,295,257 $ (4,373,122) $ 387,439

Workers' Compensa� onInsurance Fund 1,627,458 1,231,515 (1,021,297) 1,837,676

$ 2,092,762 $ 5,526,772 $ (5,394,419) $ 2,225,115

Current YearBalance Claims and Balance

October 1, Changes in (Claims September 30, 2014 Estimates Paid) 2015

Employee HealthInsurance Fund $ 379,625 $ 4,223,634 $ (4,137,955) $ 465,304

Workers' Compensa� onInsurance Fund 1,611,316 336,245 (320,103) 1,627,458

$ 1,990,941 $ 4,559,879 $ (4,458,058) $ 2,092,762

Claim liabili� es are calculated based on an actuarial valua� on, which includes considera� on ofnon-incremental claims adjustment expenses. Management es� mates that $643,187 Workers’Compensa� on and $387,439 of Employee Health Insurance claim liabili� es are payable within oneyear. No se� lements in excess of claims have been incurred in each of the past three years.

118



NOTE 16– CONTINGENCIES AND COMMITMENTS

The City par� cipates in a number of state and federal grant programs. These programs are subject toprogram compliance audits by the grantors or their representa� ves. Any disallowed claims, includingamounts already collected, may cons� tute a liability of the applicable funds. The amount, if any, ofexpenditures which may be disallowed by the gran� ng agencies cannot be determined, although theCity expects such amounts, if any, to be immaterial.

The City is defending several claims and judgments arising from the normal course of business. The Cityexpects to prevail in these ma� ers; however, the � nal outcomes have not yet been determined.

NOTE 17– ENCUMBRANCES

The City has outstanding encumbrances on various contracts for construc� on and other projects. Theseencumbrances, as of September 30, 2016, in the respec� ve funds are as follows:

General Fund $ 208,303 Community Redevelopment Agency Funds 128,107 Capital Projects Fund 61,172 Non-Major Governmental Funds - Electric U� lity Fund 144,055 Gas U� lity Fund 86,334 Water U� lity Fund 780,922 Wastewater U� lity Fund 17,793 Airport Fund 249,430 Nonmajor Enterprise Funds 43,083 Internal Service Funds 28,101 Total $ 1,747,300

Long-term purchase contract obliga� ons for the purchase of electric power are disclosed in Note 7.Long-term contracts are not included in the above outstanding encumbrance balances.

NOTE 18– RISK MANAGEMENT

The City’s self-insurance programs are accounted for in separate non-major internal service funds. Addi� onally, the City maintains insurance coverages for the following exposures:

- General and Automo� ve Liability- Property Damage, including Inland Marine and Auto Physical Damage insurance

- Crime - Law Enforcement Liability

- Public O� cials and Employment Prac� ces liability - Pollu� on Liability - Excess Workers’ Compensa� on Insurance - Excess Health Insurance

- Unemployment Compensa� on- Federal Flood Insurance- Basic Life Insurance

Exposures are limited by insurance coverage as noted. Se� led general and automo� ve liability andworkers' compensa� on claims have not exceeded the self-insured statutory limits in any of the past � veyears.

119



NOTE 19– EXTRAORDINARY GAIN

Sale of Crystal River 3 Nuclear Power Plant (CR-3) – The CR-3 municipal joint owners and several currentand former wholesale customers of Duke Energy (Duke), including the All-Requirements Project,entered into a se� lement agreement with Duke which became e� ec� ve September 26, 2014. Relevantto the CR-3 decommissioning trusts, one aspect of the se� lement agreement provides for the CR-3municipal joint owners' transfer of their CR-3 ownership interests and decommissioning trust funds toDuke in exchange for, among other things, a cash se� lement payment and release for all past, presentand future CR-3 costs and liabili� es including CR-3 decommissioning. The se� lement payments anddecommissioning trust funds transfers took place at the � nal closing on October 30, 2015. The Cityreceived $7,846,629 as a se� lement payment, and recorded an extraordinary gain of $7,727,400. Fullydepreciated capital assets of $7,497,562 have also been removed from the � nancial statements inregards to the City's ownership in CR-3.

NOTE 20– SUBSEQUENT EVENTS

On December 8, 2016, the City issued a note in the amount of $11,563,000 pursuant to Resolu� on No.9922. Proceeds from the note were used to refund the Tax Increment Revenue Bonds, Series 2009, andto pay costs of issuing the bonds. City funds of approximately $4,000,000 held for project construc� onand debt service reserves on the Tax Increment Revenue Bonds, Series 2009 were also used inconnec� on with the refunding of the aforemen� oned debt. The note carries an interest rate of 2.59%and matures on May 1, 2036. The note is secured by tax increment revenues and a covenant to budgetand appropriate from legally available non-ad valorem revenues of the City. The refunding resulted incash � ow savings of $3,070,718 and net present value savings of $1,663,425.

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122

REQUIRED SUPPLEMENTARY INFORMATION

The following supplementary schedules present the major fund budgetary comparisonschedules; trend informa� on regarding the re� rement plans for the City’s General Employees,Municipal Police and Municipal Firemen; and trend informa� on regarding otherpostemployment bene� ts. This informa� on is necessary for a fair presenta� on in conformitywith generally accepted accoun� ng principles.

123


124

CITY OF LEESBURG, FLORIDASCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUALGENERAL FUND


Budgeted Amounts Actual

Variance WithFinal Budget

PositiveOriginal Final Amounts (Negative)

RevenuesTaxes $ 10,769,488 $ 10,769,488 $ 11,379,558 $ 610,070Licenses, Permits and Assessments 1,169,000 1,169,000 1,480,640 311,640Intergovernmental 2,241,561 2,263,849 2,383,900 120,051Charges for Services 803,151 803,151 551,697 (251,454)Fines and Forfeitures 115,000 115,000 105,829 (9,171)Miscellaneous:

Interest 51,500 51,500 301,546 250,046Rental 403,000 403,000 459,108 56,108Other 92,140 92,140 115,910 23,770

Total Revenues 15,644,840 15,667,128 16,778,188 1,111,060


General Government 3,720,529 3,739,586 3,601,492 138,094Public Safety 12,607,975 12,636,694 12,532,982 103,712Physical Environment 104,602 104,602 92,080 12,522Transporta� on 1,385,194 1,546,394 1,466,585 79,809Economic Environment 257,929 258,379 227,409 30,970Human Services 972,540 425,540 51,380 374,160Culture and Recrea� on 3,095,196 3,095,196 3,022,899 72,297

Capital Outlay 256,000 349,040 316,192 32,848Total Expenditures 22,399,965 22,155,431 21,311,019 844,412

Excess (Deficiency) of Revenues Over (Under) Expenditures (6,755,125) (6,488,303) (4,532,831) 1,955,472

Other Financing Sources (Uses)Sale of Capital Assets 8,000 28,002 25,808 (2,194)Transfers from Other Funds 9,172,611 9,172,611 9,516,319 343,708Transfers to Other Funds (2,425,486) (7,989,513) (6,639,414) 1,350,099Fund Balance Appropriated - 5,277,203 - (5,277,203)

Total Other Financing Sources (Uses) 6,755,125 6,488,303 2,902,713 (3,585,590)

Net Change in Fund Balances - - (1,630,118) (1,630,118)

Fund Balances, Beginning of Year - - 14,377,603 14,377,603

Fund Balances, End of Year $ - $ - $ 12,747,485 $ 12,747,485

This schedule is prepared on the basis of Generally Accepted Accoun� ng Principles.

125

CITY OF LEESBURG, FLORIDASCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUALCOMMUNITY REDEVELOPMENT AGENCY FUNDS


Budgeted Amounts Actual


PositiveOriginal Final Amounts (Negative)

RevenuesTaxes $ 470,099 $ 470,099 $ 463,621 $ (6,478)Intergovernmental - 1,006,953 95,378 (911,575)Miscellaneous:

Interest 3,000 3,000 46,607 43,607Other - - 47 47

Total Revenues 473,099 1,480,052 605,653 (874,399)


Economic Environment 212,563 336,841 241,264 95,577Debt Service:

Principal Payments 581,098 581,098 580,598 500Interest and Fees 710,564 710,564 711,878 (1,314)

Capital Outlay - 1,980,104 42,660 1,937,444Total Expenditures 1,504,225 3,608,607 1,576,400 2,032,207

Excess (Deficiency) of Revenues Over (Under) Expenditures (1,031,126) (2,128,555) (970,747) 1,157,808

Other Financing Sources (Uses)Transfers from Other Funds 49,465 49,465 - (49,465)Issuance of Debt 668,419 1,699,305 - (1,699,305)Fund Balance Appropriated 313,242 379,785 - (379,785)

Total Other Financing Sources (Uses) 1,031,126 2,128,555 - (2,128,555)

Net Change in Fund Balances - - (970,747) (970,747)

Fund Balance, Beginning of Year - - 7,723,233 7,723,233

Fund Balances, End of Year $ - $ - $ 6,752,486 $ 6,752,486

This schedule is prepared on the basis of Generally Accepted Accoun� ng Principles.

126

CITY OF LEESBURG, FLORIDAGENERAL EMPLOYEES' PENSION PLAN

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOSLAST FOUR FISCAL YEARS

2016 2015 2014 2013 Total Pension liability

Service Cost $ 141,911 $ 152,878 $ 208,967 $ 194,388 Interest 2,831,625 2,944,455 2,926,654 2,883,831 Di� erences Between Expected and Actual Experience (22,731) (1,744,070) - - Changes of Assump� ons 1,913,430 - - - Bene� t payments, Including Refunds of Member Contribu� ons (2,700,483) (2,992,933) (2,691,425) (2,352,214)

Net Change in Total Pension Liability 2,163,752 (1,639,670) 444,196 726,005 Total Pension Liability - Beginning 38,963,325 40,602,995 40,158,799 39,432,794 Total Pension Liability - Ending (a) $ 41,127,077 $ 38,963,325 $ 40,602,995 $ 40,158,799

Plan Fiduciary Net PositionContribu� ons - Employer $ 1,166,446 $ 1,435,084 $ 1,456,725 $ 1,250,669 Net Investment Income 2,751,242 502,864 3,281,074 3,036,199 Bene� t Payments, Including Refunds of Member Contribu� ons (2,700,483) (2,992,933) (2,691,425) (2,352,214)Administra� ve Expense (70,197) (73,823) (81,087) (63,599)

Net Change in Plan Fiduciary Net Position 1,147,008 (1,128,808) 1,965,287 1,871,055

Plan Fiduciary Net Position - Beginning 33,820,101 34,948,909 32,983,622 31,112,567 Plan Fiduciary Net Position - Ending (b) $ 34,967,109 $ 33,820,101 $ 34,948,909 $ 32,983,622

City's Net Pension Liability - Ending (a) - (b) $ 6,159,968 $ 5,143,224 $ 5,654,086 $ 7,175,177

Plan Fiduciary Net Position as a Percentage of theTotal Pension Liability 85.02% 86.80% 86.07% 82.13%

Covered-Employee Payroll $ 10,350,154 $ 11,184,611 N/A N/A

City's Net Position Liability as a Percentage of theCovered-Employee Payroll 59.52% 45.98% N/A N/A

Notes to Schedule:Changes of assump� ons:

For measurement date 09/30/2016, as a result of Chapter 2015-157, Laws of Florida, the assumed rates of mortalitywere changed to the assump� ons used by the Florida Re� rement System.The investment rate of return was lowered from 7.50% to 7.45%, net of investment related expenses.

NOTE: This schedule is intended to show informa� on for ten years; however, data was unavailable prior to 2013. Addi� onal years' informa� on will be presented as it becomes available.

127

CITY OF LEESBURG, FLORIDAMUNICIPAL POLICE OFFICERS' PENSION PLAN


2016 2015 2014 2013 Total Pension Liability

Service cost $ 531,469 $ 583,726 $ 612,234 $ 568,199 Interest 1,386,584 1,401,184 1,299,397 1,219,007 Changes of Bene� t Terms - 390,863 - - Di� erences Between Expected and Actual Experience 615,885 (1,091,580) - - Changes of Assump� ons 370,217 - - - Bene� t Payments, Including Refunds of Member Contribu� ons (960,560) (1,098,375) (822,819) (765,084)

Net Change in Total Pension Liability 1,943,595 185,818 1,088,812 1,022,122 Total Pension Liability - Beginning 17,840,214 17,654,396 16,565,584 15,543,462 Total Pension Liability - Ending (a) $ 19,783,809 $ 17,840,214 $ 17,654,396 $ 16,565,584

Plan Fiduciary Net PositionContribu� ons - Employer $ 255,920 $ 248,486 $ 371,964 $ 406,147 Contribu� ons - State 183,761 168,105 160,225 155,997 Contribu� ons - Employee 277,064 250,545 258,985 276,198 Net Investment Income 1,042,752 (211,259) 1,868,068 1,685,318 Bene� t Payments, Including Refunds of Member Contribu� ons (960,560) (1,098,375) (822,819) (765,084)Administra� ve Expense (50,968) (46,291) (43,005) (31,140)

Net Change in Plan Fiduciary Net Position 747,969 (688,789) 1,793,418 1,727,436


City's Net Pension Liability - Ending (a) - (b) $ 1,943,527 $ 747,901 $ (126,706) $ 577,900


Covered-Employee Payroll * $ 3,621,754 $ 3,476,535 $ 3,385,424 $ 3,610,429

City's Net Position Liability as a Percentage of theCovered-Employee Payroll 53.66% 21.51% -3.74% 16.01%


128

CITY OF LEESBURG, FLORIDAMUNICIPAL POLICE OFFICERS' PENSION PLAN


Notes to Schedule:Changes of bene� t terms:

For Fiscal year 2015, amounts reported as changes of bene� t terms were resulted from:3.00% � mes Credited Service earned prior to May 27, 2003, plus2.00% � mes Credited Service earned between May 27, 2003 and September 30, 2009, plus2.5% � mes Credited Service earned between October 1, 2009 and September 30, 2015, plus3.00% � mes Credited Service earned on and a� er October 1, 2015.

* The Covered Employee Payroll amounts shown are in compliance with GASB 82, except for the 09/30/2015measurement period which includes DROP payroll.Changes of assump� ons:For measurement date 09/30/2016, amounts reported as changes of assump� ons resulted of the September 13, 2016Experience Study, the Board adopted the following changes:

1. The investment return assump� on was lowered from 7.75% to 7.65% net of investment related expenses.2. The mortality rates were changed from the RP2000 Combined Healthy table to the tables used by the FloridaRe� rement System (FRS) for special risk lives in their July 1, 2015 actuarial valua� on report. This change was requiredby Chapter 2015-157, Laws of Florida.3. The re� rement assump� on was changed to the following table:

Early Re� rement with less than 25 years of Credited Service: 10.0% (previously 2%) per year.Normal Re� rement with 25 years of Credited Service: 100%Normal Re� rement with < 25 yrs at 55 75%Normal Re� rement with < 25 yrs at 56 25%Normal Re� rement with < 25 yrs at 57 25%Normal Re� rement with < 25 yrs at 58 25%Normal Re� rement with < 25 yrs at 59 25%Normal Re� rement with < 25 yrs at 60+ 100%

4. The withdrawal rates were changed to con� nue to use the current assump� on for more than 10 years of serviceand assuming a 9.0% turnover rate each of the � rst 10 years.5. The payroll growth used for amor� zing the Unfunded Actuarial Accrued Liability was changed from 0.8% to 0.0%.6. The assumed rates of individual salary increase was changed from a � at 5.2% to the following rates based uponCredited Service:

< 5 Years of Service 7.0% per year5 – 14 Years of Service 5.0% per year15+ Years of Service 4.5% per year

129

CITY OF LEESBURG, FLORIDAMUNICIPAL FIREMEN'S PENSION PLAN


2016 2015 2014 2013 Total Pension Liability

Service Cost $ 409,225 $ 512,330 $ 542,778 $ 504,910 Interest 1,509,178 1,483,143 1,419,978 1,339,445 Share Plan Alloca� on 40,135 55,931 51,032 - Di� erences Between Expected and Actual Experience (428,003) (267,086) - - Changes of Assump� ons 673,999 - - - Bene� t Payments, Including Refunds of Member Contribu� ons (1,222,312) (1,445,857) (836,424) (780,467)

Net Change in Total Pension Liability 982,222 338,461 1,177,364 1,063,888 Total Pension Liability - Beginning 20,324,301 19,985,840 18,808,476 17,744,588 Total Pension Liability - Ending (a) $ 21,306,523 $ 20,324,301 $ 19,985,840 $ 18,808,476

Plan Fiduciary Net PositionContribu� ons - Employer $ 540,916 $ 609,819 $ 866,635 $ 827,920 Contribu� ons - State 150,584 166,380 161,481 156,635 Contribu� ons - Employee 163,470 178,693 190,151 187,674 Net Investment Income 1,636,931 (244,332) 1,362,537 1,792,048 Bene� t Payments, Including Refunds of Member Contribu� ons (1,222,312) (1,445,857) (836,424) (780,467)Administra� ve Expense (36,378) (50,322) (46,621) (34,748)

Net Change in Plan Fiduciary Net Position 1,233,211 (785,619) 1,697,759 2,149,062


City's Net Pension Liability - Ending (a) - (b) $ 3,831,406 $ 4,082,395 $ 2,958,315 $ 3,478,710


Covered-Employee Payroll* $ 2,514,924 $ 2,901,491 $ 2,925,402 $ 2,887,291

City's Net Position Liability as a Percentage of theCovered-Employee Payroll 152.35% 140.70% 101.13% 120.48%Notes to Schedule:Changes of assump� ons:

For measurement date 09/30/2016, as a result of Chapter 2015-157, Laws of Florida, the assumed rates of mortalitywere changed to the assump� ons used by the Florida Re� rement System for special risk employees.The in� a� on assump� on rate was lowered from 3.00% to 2.70%, matching the long-term in� a� on assump� on u� lizedby the Plan's investment consultant.

* The Covered Employee Payroll amounts shown are in compliance with GASB 82, except for the 09/30/2015measurement period.


130

CITY OF LEESBURG, FLORIDA GENERAL EMPLOYEES' PENSION PLAN

SCHEDULE OF CONTRIBUTIONSLAST FOUR FISCAL YEARS

2016 2015 2014 2013 Actuarially Determined Contribu� on $ 1,166,446 $ 1,435,084 $ 1,456,725 $ 1,435,084 Contribu� ons in Rela� on To The ActuariallyDetermined Contribu� ons 1,166,446 1,435,084 1,456,725 1,435,084 Contribu� on De� ciency (Excess) $ - $ - $ - $ -

Covered-Employee Payroll $ 10,350,154 $ 11,184,611 N/A N/A Contributions as a Percentage Of CoveredEmployee payroll 11.27% 12.83% N/A N/A

Notes to Schedule

Valua� on Date: 10/1/2014

Actuarially determined contribu� on rates are calculated as of October 1, two years prior to the end of the � scal year in which contribu� ons arereported.

Methods and assump� ons used to determine contribu� on rates:

Funding method Entry age Normal methodAmor� za� on Method Level DollarRemaining Amor� za� on Period 23 Years (as of 10/01/2014 Valua� on)

MortalityRP 2000 Combined Healthy (sex dis� nct), projected to valua� on date using scale AA. Disabled lives setforward 5 years.

Termina� on Rates See Table below.Disability Rates See Table below.

Re� rement Rates: Age Rate Per Year50-54 2%55-58 20%59-61 20%

62 50%63-64 25%

65 100%

Interest Rate 7.5% per year, compounded annually, net of investment related expenses. Salary Increases NonePayroll Increases NoneCost-of-Living Adjustment 2.0% per year a� er 3 years (no VT's)Actuarial Asset Method Each year, the prior Actuarial Value of Assets is brought forward u� lizing the historical geometric 4-year

average Market Value return (net of fees). It is possible that over � me this technique will produce an insigni� cant bias above or below Market Value.

Other Informa� on Termina� on and Disability Rate Table% Becoming

% Termina� ng DisabledDuring the During the

Age Year Year 20 25.0% 0.05% 30 12.4% 0.06% 40 9.5% 0.12% 50 7.5% 0.43% 60 5.5% 1.61%


131

CITY OF LEESBURG, FLORIDA MUNICIPAL POLICE OFFICERS' PENSION PLAN


2016 2015 2014 2013 Actuarially Determined Contribu� on $ 439,681 $ 416,591 $ 532,189 $ 562,144 Contribu� ons In Rela� on To The ActuariallyDetermined Contribu� ons 439,681 416,591 532,189 562,144 Contribu� on De� ciency (Excess) $ - $ - $ - $ -

Covered-Employee Payroll* $ 3,621,754 $ 3,476,535 3,385,424 3,610,429 Contributions as a Percentage of CoveredEmployee Payroll 12.14% 11.98% 15.72% 15.57%

*The Covered Employee Payroll numbers shown are in compliance with GASB 82, except for the 09/30/2015 measurement period which includes DROP payroll.

Notes to Schedule

Valua� on Date: 10/1/2014 (AIS 09/02/2015)

Actuarially determined contribu� on rates are calculated as of October 1, two years prior to the end of the � scal year in which contribu� ons are reported.


Funding Method Frozen Entry Age Actuarial Cost MethodAmor� za� on Method Level Percentage of Pay, ClosedRemaining Amor� za� on Period 30 Years (as of 10/01/2014)Mortality RP-2000 Table with no projec� on- based on a study of over 650 public safety funds, this table re� ects a 10%

margin for future mortality improvements. Disabled mortality is set forward 5 years.Interest Rate 7.75% per year compounded annually, net of investment related expenses.Re� rement Age 100% at � rst eligibility for normal re� rement. Also, any member who has reached normal re� rement

eligibility is assumed to con� nue employment for one addi� onal year. Early Re� rement Commencing at eligibility for early re� rement. Members are assumed to re� re with an immediate bene� t at

the rate of 2% per year.Disability Rates See Table below. It is assumed that 75% of disablements and ac� ve member deaths are service related.Termina� on Rates See Table below.Salary Increases 5.2% per year un� l the assumed re� rement age. Projected salary at re� rement is increased individually to

account for non-regular compensa� on.Cost-of-Living Adjustment NonePayroll growth assump� on 1.6% annually for amor� zing UAALAsset Valua� on Each year, the prior actuarial value of assets is brought forward u� lizing the historical geometric 4-year

average market value returns, net of fees. It is possible that over � me this technique will produce aninsigni� cant bias above or below market value.

Other Informa� on Termina� on and Disability Rate Table% Becoming

% Termina� ng DisabledDuring the During the

Age Year Year 20 9.00% 0.07% 30 7.50% 0.11% 40 3.90% 0.19% 50 1.20% 0.51%

NOTE: This schedule is intended to show informa� on for ten years; however, data was unavailable prior to 2013. Addi� onal years'informa� on will be presented as it becomes available.

132

CITY OF LEESBURG, FLORIDA MUNICIPAL FIREMEN'S PENSION PLAN


2016 2015 2014 2013 Actuarially Determined Contribu� on $ 651,365 $ 720,269 $ 977,084 $ 938,370 Contribu� ons In Rela� on To The ActuariallyDetermined Contribu� ons 651,365 720,269 977,084 938,370 Contribu� on De� ciency (Excess) $ - $ - $ - $ -

Covered-Employee Payroll* $ 2,514,924 $ 2,901,491 $ 2,925,402 $ 2,887,291 Contributions as a Percentage of CoveredEmployee Payroll 25.90% 24.82% 33.40% 32.50%

* The Covered Employee Payroll numbers shown are in compliance with GASB 82, except for the 09/30/2015 measurement period.

Notes to Schedule

Valua� on Date: 10/1/2014

Actuarially determined contribu� on rates are calculated as of October 1, two years prior to the end of the � scal year in which contribu� ons are reported.


Funding Method Entry Age Normal Cost Method (20-year amor� za� on of new base)Amor� za� on Method Level Percentage of Pay, ClosedRemaining Amor� za� on Period 26 years (as of 10/01/2014)Mortality RP-2000 Combined healthy-sex dis� nct. Based on a study of over 650 public safety funds, this table re� ects a 10% margin for

future mortality improvements. Disability mortality is set forward � ve years. Termina� on Rates 25% in year one; 10% in years 2 through 5; 3% in years 6 through 10; and 2% in years 11 on.Disability Rates See Table below. 75% of disabili� es are assumed to occur in the line of duty.Re� rement Age 50% at � rst eligibility of normal re� rement; 50% in second year of eligibility; 100% in third year of eligibility.Early Re� rement 3% per year eligibleInterest Rate 7.50% per year compounded annually, net of investment-related expensesSalary Increases 6% in years 1 through 5; 5% in years 6 through 10; 4%in years 11 on.Payroll Growth 3.0% for amor� zing UAALAsset Valua� on Method Each year, the prior actuarial value of assets is brought forward u� lizing the historical geometric 4-year average market value

returns (net of fees). It is possible that over � me this technique will produce an insigni� cant bias above or below market valueof assets.

Other Informa� on Disability Rate Table% Becoming

DisabledDuring the

Age Year 20 0.05% 30 0.06% 40 0.12% 50 0.43%

NOTE: This schedule is intended to show informa� on for ten years; however, data was unavailable prior to 2013. Addi� onal years'informa� on will be presented as it becomes available.

133

CITY OF LEESBURG, FLORIDASCHEDULE OF INVESTMENT RETURNS

LAST FOUR FISCAL YEARS

GENERAL EMPLOYEES' PENSION PLAN

2016 2015 2014 2013

Annual Money-Weighted Rate of Return, Net of Investment Expenses 8.31% 1.47% 10.13% 9.94%

MUNICIPAL POLICE OFFICERS' PENSION PLAN

2016 2015 2014 2013

Annual Money-Weighted Rate of Return, Net of Investment Expenses 6.19% -1.21% 11.76% 11.80%

MUNICIPAL FIREMEN'S PENSION PLAN

2016 2015 2014 2013

Annual Money-Weighted Rate of Return, Net of Investment Expenses 10.27% -1.45% 8.82% 13.41%


134

CITY OF LEESBURG, FLORIDAREQUIRED SUPPLEMENTARY INFORMATION

OTHER POSTEMPLOYMENT BENEFITS - SCHEDULE OF FUNDING PROGRESS

Unfunded(Overfunded)

Actuarial Actuarial Actuarial Accrued Annual UAAL as aValuation Value of Accrued Liability Funded Covered Percentage of

Date Assets Liability (UAAL) Ratio Payroll Payroll10/1/2014 $ - $ 27,749,667 $ 27,749,667 0.0% $ 21,105,249 131.5%10/1/2012 - 21,719,437 21,719,437 0.0% 16,755,182 129.6%10/1/2010 - 24,870,238 24,870,238 0.0% 18,187,292 136.7%

SCHEDULE OF EMPLOYER CONTRIBUTIONS

AnnualFiscal Required PercentageYear Contribution of ARC

Ended (ARC) Contributed9/30/2016 $ 2,650,336 49.3%9/30/2015 2,578,652 47.2%9/30/2014 2,128,011 46.3%

135


136

SUPPLEMENTAL INFORMATION

The following supplemental schedules present combining nonmajor fund statements andindividual fund budgetary schedules.

137


138

NON-MAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS

Special Revenue Funds account for the proceeds of speci� c revenue sources (other thanexpendable trusts and major capital projects) that are legally restricted for speci� c purposesas described below.

Housing Assistance Fund accounts for grant funds received to provide a� ordable housing forlow income households.

Police Forfeiture Fund accounts for funds associated with Municipal, State and Federalseizures. Revenues are split between State and Federal forfeitures, each having their ownrules and restric� ons as to how the funds may be spent.

Police Education Fund accounts for funds created by Criminal Jus� ce Educa� on Funding. Revenue is set aside to fund criminal jus� ce educa� on programs and training courses whichinclude basic recruit, o� cer, and agency support personnel training.

Gas Tax Fund accounts for income associated with the Ninth-cent Fuel Tax, Local Op� on FuelTax, and Revenue Sharing Gas Tax, which are restricted for speci� c uses. Those uses include:construc� on, reconstruc� on and maintenance of roads, streets, bicycle and pedestrianpathways. Funds may also be used for u� lity reloca� on.

Police Impact Fee Fund accounts for Municipal Impact Fees collected on land developedwithin the City, for the provision of Municipal Services Capital Facili� es related to policeservices, due to a new development.

Fire Impact Fee Fund accounts for Municipal Impact Fees collected on land developed withinthe City, for the provision of Municipal Services Capital Facili� es related to � re services, due toa new development.

Recreation Impact Fee Fund accounts for Municipal Impact Fees collected on land developedwithin the City, for the provision of Municipal Services Capital Facili� es related to recrea� onservices, due to a new development.

Building Permits Fund accounts for the cost of building permit and inspec� on services,through the dedicated revenues generated in providing these services.

DEBT SERVICE FUND

Debt Service Fund accounts for the accumula� on of resources for, and the payment of,interest and principal on most general governmental obliga� ons.

139

CITY OF LEESBURG, FLORIDACOMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDSSEPTEMBER 30, 2016

Special Revenue Funds

HousingAssistance

Fund

PoliceForfeitures

Fund

PoliceEducation

Fund

GasTax

Fund

PoliceImpact Fee

Fund

AssetsPooled Cash and Investments $ 439,853 $ 44,533 $ 5,516 $ 734,932 $ 240,911Cash with Fiscal Agent - - - - -Accounts Receivables, Net 13,438 - - - -Due from Other Governments - - 432 56,701 -

Total Assets $ 453,291 $ 44,533 $ 5,948 $ 791,633 $ 240,911


LiabilitiesAccounts Payable $ 4,230 $ 48 $ - $ 29 $ 7Due to Other Funds - - - - -Due to Other Governments - - - - -Accrued Salaries 180 - - - -Deposits 7,050 - - - -

Total Liabilities 11,460 48 - 29 7

Fund BalancesRestricted for:

Debt Service - - - - -Special Revenue Funds 441,831 44,485 5,948 791,604 240,904

Unassigned (de� cit) - - - - -Total Fund Balances (Deficit) 441,831 44,485 5,948 791,604 240,904

Total Liabilities and Fund Balances (Deficits) $ 453,291 $ 44,533 $ 5,948 $ 791,633 $ 240,911

140

Special Revenue Funds Debt Service

FireImpact Fee

Fund

RecreationImpact Fee

Fund

BuildingPermits

Fund

DebtService

Fund

TotalNonmajor

GovernmentalFunds

$ - $ 209,842 $ 959,895 $ - $ 2,635,482- - - 1,139,083 1,139,083- - - - 13,438- - - - 57,133

$ - $ 209,842 $ 959,895 $ 1,139,083 $ 3,845,136

$ - $ 5 $ 631 $ - $ 4,95010,211 - - - 10,211

- - 9,182 - 9,182- - 18,582 - 18,762- - - - 7,050

10,211 5 28,395 - 50,155

- - - 1,139,083 1,139,083- 209,837 931,500 - 2,666,109

(10,211) - - - (10,211)(10,211) 209,837 931,500 1,139,083 3,794,981

$ - $ 209,842 $ 959,895 $ 1,139,083 $ 3,845,136

141

CITY OF LEESBURG, FLORIDACOMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCESNONMAJOR GOVERNMENTAL FUNDS


Special Revenue Funds

HousingAssistance

Fund

PoliceForfeitures

Fund

PoliceEducation

Fund

GasTax

Fund

PoliceImpact Fee

Fund

RevenuesTaxes $ - $ - $ - $ 695,632 $ -Licenses, Permits and Assessments - - - - -Intergovernmental - - - 156,205 -Charges for Services - - - - -Fines and Forfeitures - 22,326 6,467 - -Impact Fees - - - - 69,947Miscellaneous:

Interest 7,464 763 60 9,687 3,145Other 165,014 - - - -

Total Revenues 172,478 23,089 6,527 861,524 73,092


Public Safety - 14,726 12,138 - 70Transporta� on - - - 218 -Economic Environment 72,822 - - - -

Debt Service:Principal Payments - - - - -Interest and Fees - - - - -

Capital Outlay 32,185 8,569 - - -Total Expenditures 105,007 23,295 12,138 218 70

Excess (Deficiency) of Revenues Over (Under) Expenditures 67,471 (206) (5,611) 861,306 73,022

Other Financing Sources (Uses)Transfers from Other Funds - - - - -Transfers to Other Funds (1,902) - - (474,508) (5,740)

Total Other Financing Sources (Uses) (1,902) - - (474,508) (5,740)

Net Change in Fund Balance 65,569 (206) (5,611) 386,798 67,282

Fund Balances (Deficits), Beginning of Year 376,262 44,691 11,559 404,806 173,622

Fund Balances (Deficits), End of Year $ 441,831 $ 44,485 $ 5,948 $ 791,604 $ 240,904

142

Special Revenue Funds Debt Service

FireImpact Fee

Fund

RecreationImpact Fee

Fund

BuildingPermits

Fund

DebtService

Fund

TotalNonmajor

GovernmentalFunds

$ - $ - $ - $ - $ 695,632- - 1,140,215 - 1,140,215- - - - 156,205- - 1,903 - 1,903- - - - 28,793

18,333 71,400 - - 159,680

(330) 3,845 8,251 2,500 35,385- - 81 - 165,095

18,003 75,245 1,150,450 2,500 2,382,908

- - 492,776 - 519,710- - - - 218- 83 - - 72,905

- - - 1,716,464 1,716,464- - - 804,093 804,093- - - - 40,754- 83 492,776 2,520,557 3,154,144

18,003 75,162 657,674 (2,518,057) (771,236)

- - 18,260 2,532,329 2,550,589(1,380) (87,175) - - (570,705)(1,380) (87,175) 18,260 2,532,329 1,979,884

16,623 (12,013) 675,934 14,272 1,208,648

(26,834) 221,850 255,566 1,124,811 2,586,333

$ (10,211) $ 209,837 $ 931,500 $ 1,139,083 $ 3,794,981

143

CITY OF LEESBURG, FLORIDASCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL

CAPITAL PROJECTS FUNDFOR THE YEAR ENDED SEPTEMBER 30, 2016

FinalBudget

ActualAmounts


Positive(Negative)

RevenuesIntergovernmental $ 300,000 $ - $ (300,000)Miscellaneous:

Interest - 10,497 10,497Total Revenues 300,000 10,497 (289,503)


General Government 9,733,228 1,168,582 8,564,646Transporta� on 1,005,000 2,443 1,002,557Culture and Recrea� on - - -

Total Expenditures 10,738,228 1,171,025 9,567,203

Excess (Deficiency) of Revenues Over (Under) Expenditures (10,438,228) (1,160,528) 9,277,700

Other Financing Sources (Uses)Transfers from Other Funds 10,438,228 7,795,935 (2,642,293)

Total Other Financing Sources (Uses) 10,438,228 7,795,935 (2,642,293)

Net Change in Fund Balances - 6,635,407 6,635,407

Fund Balance, Beginning of Year - (11,615) (11,615)

Fund Balance, End of Year $ - $ 6,623,792 $ 6,623,792

144


HOUSING ASSISTANCE FUNDFOR THE YEAR ENDED SEPTEMBER 30, 2016

FinalBudget Actual


Positive(Negative)

RevenuesMiscellaneous:

Interest $ - $ 7,464 $ 7,464Other 130,800 165,014 34,214

Total Revenues 130,800 172,478 41,678


Economic Environment 130,620 72,822 57,798Capital Outlay 38,000 32,185 5,815

Total Expenditures 168,620 105,007 63,613

Excess (Deficiency) of Revenues Over (Under) Expenditures (37,820) 67,471 105,291

Other Financing Sources (Uses)Transfers to Other Funds (49,465) (1,902) 47,563Fund Balance Appropriated 87,285 - (87,285)

Total Other Financing Sources (Uses) 37,820 (1,902) (39,722)

Net Change in Fund Balance - 65,569 65,569

Fund Balances, Beginning of Year - 376,262 376,262

Fund Balances, End of Year $ - $ 441,831 $ 441,831

145


POLICE FORFEITURES FUNDFOR THE YEAR ENDED SEPTEMBER 30, 2016

FinalBudget Actual


Positive(Negative)

RevenuesFines and Forfeitures $ - $ 22,326 $ 22,326Miscellaneous:

Interest - 763 763Total Revenues - 23,089 23,089


Public Safety 4,000 14,726 (10,726)Capital Outlay 8,569 8,569 -

Total Expenditures 12,569 23,295 (10,726)

Excess (Deficiency) of Revenues Over (Under) Expenditures (12,569) (206) 12,363

Other Financing Sources (Uses)Fund Balance Appropriated 12,569 - (12,569)

Total Other Financing Sources (Uses) 12,569 - (12,569)

Net Change in Fund Balance - (206) (206)



146


POLICE EDUCATION FUNDFOR THE YEAR ENDED SEPTEMBER 30, 2016

FinalBudget Actual


Positive(Negative)

RevenuesFines and Forfeitures $ - $ 6,467 $ 6,467Miscellaneous:

Interest - 60 60Total Revenues - 6,527 6,527


Public Safety 12,000 12,138 (138)Total Expenditures 12,000 12,138 (138)

Excess (Deficiency) of Revenues Over (Under) Expenditures (12,000) (5,611) 6,389

Other Financing Sources (Uses)Fund Balance Appropriated 12,000 - (12,000)

Total Other Financing Sources (Uses) 12,000 - (12,000)

Net Change in Fund Balance - (5,611) (5,611)



147


GAS TAX FUNDFOR THE YEAR ENDED SEPTEMBER 30, 2016

FinalBudget Actual


Positive(Negative)

RevenuesTaxes $ 797,031 $ 695,632 $ (101,399)Intergovernmental 175,395 156,205 (19,190)Miscellaneous:

Interest - 9,687 9,687Total Revenues 972,426 861,524 (110,902)


Transporta� on - 218 (218)Total Expenditures - 218 (218)

Excess (Deficiency) of Revenues Over (Under) Expenditures 972,426 861,306 (111,120)

Other Financing Sources (Uses)Transfers to Other Funds (972,426) (474,508) 497,918

Total Other Financing Sources (Uses) (972,426) (474,508) 497,918




148


POLICE IMPACT FEE FUNDFOR THE YEAR ENDED SEPTEMBER 30, 2016

FinalBudget Actual


Positive(Negative)

RevenuesImpact Fees $ - $ 69,947 $ 69,947Miscellaneous:

Interest - 3,145 3,145Total Revenues - 73,092 73,092


Public Safety - 70 (70)Total Expenditures - 70 (70)

Excess (Deficiency) of Revenues Over (Under) Expenditures - 73,022 73,022

Other Financing Sources (Uses)Transfers to Other Funds - (5,740) (5,740)

Total Other Financing Sources (Uses) - (5,740) (5,740)




149


FIRE IMPACT FEE FUNDFOR THE YEAR ENDED SEPTEMBER 30, 2016

FinalBudget Actual


Positive(Negative)


Interest - (330) (330)Total Revenues - 18,003 18,003

ExpendituresTotal Expenditures - - -


Other Financing Sources (Uses)Transfers to Other Funds - (1,380) (1,380)



Fund Balances, Beginning of Year - (26,834) (26,834)

Fund Balances, End of Year $ - $ (10,211) $ (10,211)

150


RECREATION IMPACT FEE FUNDFOR THE YEAR ENDED SEPTEMBER 30, 2016

FinalBudget Actual


Positive(Negative)


Interest - 3,845 3,845Total Revenues - 75,245 75,245


Economic Environment - 83 (83)Total Expenditures - 83 (83)


Other Financing Sources (Uses)Transfers to Other Funds (275,000) (87,175) 187,825Fund Balance Appropriated 275,000 - (275,000)


Net Change in Fund Balance - (12,013) (12,013)



151


BUILDING PERMITS FUNDFOR THE YEAR ENDED SEPTEMBER 30, 2016

FinalBudget Actual


Positive(Negative)

RevenuesLicenses, Permits and Assessments $ 615,000 $ 1,140,215 $ 525,215Charges for Services - 1,903 1,903Miscellaneous:

Interest - 8,251 8,251Other - 81 81

Total Revenues 615,000 1,150,450 535,450


Public Safety 622,900 492,776 130,124Total Expenditures 622,900 492,776 130,124

Excess (Deficiency) of Revenues Over (Under) Expenditures (7,900) 657,674 665,574

Other Financing Sources (Uses)Transfers from Other Funds 7,900 18,260 10,360

Total Other Financing Sources (Uses) 7,900 18,260 10,360




152


DEBT SERVICE FUNDFOR THE YEAR ENDED SEPTEMBER 30, 2016

FinalBudget Actual


Positive(Negative)

RevenuesMiscellaneous:

Interest $ - $ 2,500 $ 2,500Total Revenues - 2,500 2,500

ExpendituresDebt Service:

Principal Payments 1,716,464 1,716,464 -Interest and Fees 820,027 804,093 15,934

Total Expenditures 2,536,491 2,520,557 15,934

Excess (Deficiency) of Revenues Over (Under) Expenditures (2,536,491) (2,518,057) 18,434

Other Financing Sources (Uses)Transfers from Other Funds 2,536,491 2,532,329 (4,162)

Total Other Financing Sources (Uses) 2,536,491 2,532,329 (4,162)


Fund Balances, Beginning of Year - 1,124,811 1,124,811

Fund Balances, End of Year $ - $ 1,139,083 $ 1,139,083

153


154

NON-MAJOR ENTERPRISE FUNDS

Enterprise Funds account for opera� ons that are � nanced and operated in a manner similar toprivate business enterprises where the costs of providing goods or services to the generalpublic are recovered primarily through user charges; or where the City has decided thatdetermina� on of net income is appropriate for capital maintenance, public policy,management control, accountability or other purposes. Individual non-major enterprise fundsare described below.

Stormwater Fund accounts for the costs associated with the management,construc� on, maintenance, protec� ons, control, regula� on, use, andenhancement of stormwater systems and programs within City limits.

Solid Waste Fund accounts for the City's solid waste disposal and reduc� onneeds, including residen� al and commercial collec� on, curbside recyclingcollec� on, yard waste collec� on, and post-closure monitoring of the closedland� ll.

Communication Services Fund accounts for the provision of communica� onservices, such as Internet, � ber op� c communica� ons, and cellular telephonetower rental.

155

CITY OF LEESBURG, FLORIDACOMBINING STATEMENT OF NET POSITION

NONMAJOR ENTERPRISE FUNDSSEPTEMBER 30, 2016

Business-type Activities - Enterprise Funds

Stormwater Fund Solid Waste FundCommunicationServices Fund

TotalNonmajor

Enterprise Funds

Assets

Current Assets:Pooled Cash and Investments $ 3,488,663 $ 2,900,728 $ 1,322,401 $ 7,711,792Restricted Pooled Cash and Investments:

Debt Service Account - - 114,293 114,293Customer Deposits Account - 4,475 2,898 7,373Land� ll Escrow - 92,326 - 92,326

Receivables:Customer Accounts, Unbilled 71,996 173,417 91,309 336,722Customer Accounts, Billed 105,567 289,395 81,933 476,895(Allowance for Doub� ul Accounts) (15,016) (41,870) (454) (57,340)

Due from Other Governments 67,836 - - 67,836Prepaid Items - - 72,591 72,591Inventory - - 220,066 220,066

Total Current Assets 3,719,046 3,418,471 1,905,037 9,042,554

Noncurrent Assets:Property, Plant and Equipment:

Land 730,887 28,700 - 759,587Buildings - 13,856 - 13,856Improvements Other Than Buildings 10,478,905 191,691 8,877,858 19,548,454Machinery and Equipment 80,187 139,726 1,497,511 1,717,424Less Accumulated Deprecia� on and Amor� za� on (3,577,111) (246,593) (4,572,158) (8,395,862)Construc� on in Progress 354,603 - 1,360,605 1,715,208

Total Property, Plant and Equipment 8,067,471 127,380 7,163,816 15,358,667Total Noncurrent Assets 8,067,471 127,380 7,163,816 15,358,667Total Assets 11,786,517 3,545,851 9,068,853 24,401,221

Deferred Outflows of ResourcesDeferred Ou� lows-Pension Related 15,447 55,633 22,213 93,293

156


NONMAJOR ENTERPRISE FUNDSSEPTEMBER 30, 2016


Stormwater Fund Solid Waste FundCommunicationServices Fund

TotalNonmajor

Enterprise FundsLiabilities

Current Liabili� es:Accounts and Retainage Payable $ 123,178 $ 54,797 $ 8,804 $ 186,779Due to Other Governments - 725 1,351 2,076Other Accrued Expenses 6,557 33,323 16,830 56,710Compensated Absences 3,780 35,475 17,028 56,283

133,515 124,320 44,013 301,848

Current Liabili� es Payable from Restricted Assets:Customer Deposits - 4,475 2,898 7,373Es� mated Land� ll Closure Cost Payable - 63,717 - 63,717Accrued Interest Payable - - 7,382 7,382Bonds and Notes Payable - Current Por� on - - 105,000 105,000

Total Current Liabili� es Payable from Restricted Assets - 68,192 115,280 183,472Total Current Liabili� es 133,515 192,512 159,293 485,320

Noncurrent Liabili� es:Capital Improvement Revenue Refunding Note 2009 - - 345,000 345,000Compensated Absences 3,093 29,025 13,932 46,050Land� ll Postclosure Costs Payable - 63,717 - 63,717Other Postemployment Bene� ts 101,256 461,104 152,081 714,441Net Pension Liability 39,158 193,254 94,178 326,590

Total Noncurrent Liabili� es 143,507 747,100 605,191 1,495,798Total Liabilities 277,022 939,612 764,484 1,981,118

Deferred Inflows of ResourcesDeferred In� ows-Pension Related 4,586 16,375 5,156 26,117

Net PositionNet Investment in Capital Assets 8,067,471 127,380 6,713,816 14,908,667Unrestricted 3,452,885 2,518,117 1,607,610 7,578,612

Total Net Position $ 11,520,356 $ 2,645,497 $ 8,321,426 $ 22,487,279

157


158

CITY OF LEESBURG, FLORIDACOMBINING STATEMENT OF REVENUES, EXPENSES,

AND CHANGES IN FUND NET POSITIONNONMAJOR ENTERPRISE FUNDS



Stormwater Fund Solid Waste FundCommunication

Services Fund

TotalNon Major

Enterprise Funds

Operating RevenuesCharges for Services $ 1,463,285 $ 3,877,301 $ 2,032,125 $ 7,372,711Other 17,054 47,919 423 65,396

Total Operating Revenues 1,480,339 3,925,220 2,032,548 7,438,107

Operating ExpensesPersonal Services 276,591 1,013,268 502,397 1,792,256Supplies and Materials 25,791 208,483 16,650 250,924Maintenance Costs 79,160 308,170 89,534 476,864Contracted Services 93,008 785,672 351,050 1,229,730Other Services and Charges 250,695 586,770 266,619 1,104,084Deprecia� on and Amor� za� on 186,187 22,730 320,008 528,925Change in Decommissioning/ Postclosure Es� mate - (62,012) - (62,012)

Total Operating Expenses 911,432 2,863,081 1,546,258 5,320,771

Operating Income 568,907 1,062,139 486,290 2,117,336

Nonoperating Revenues (Expenses)Investment Income 51,866 43,346 19,169 114,381Gain (Loss) on Sale of Assets - - (1,559) (1,559)Interest Expense - (22) (19,099) (19,121)

Total Nonoperating Revenues (Expenses) 51,866 43,324 (1,489) 93,701

Income (Loss) Before Contributions and Transfers 620,773 1,105,463 484,801 2,211,037

Transfers and Capital ContributionsCapital Contribu� ons 67,836 - - 67,836Transfers to Other Funds - (539,874) (100,000) (639,874)

Total Transfers and Capital Contributions 67,836 (539,874) (100,000) (572,038)

Change in Net Position 688,609 565,589 384,801 1,638,999

Net Position, Beginning of Year 10,831,747 2,079,908 7,936,625 20,848,280

Net Position, End of Year $ 11,520,356 $ 2,645,497 $ 8,321,426 $ 22,487,279

159

CITY OF LEESBURG, FLORIDACOMBINING STATEMENT OF CASH FLOWS

NONMAJOR ENTERPRISE FUNDSFOR THE YEAR ENDED SEPTEMBER 30, 2016


TotalStormwater Solid Communication Nonmajor

Fund Waste Services Enterprise FundsCash Flows from Operating Activities Receipts from Customers and Users $ 1,483,997 $ 3,930,487 $ 1,980,527 $ 7,395,011 Payments to Suppliers for Goods and Services (406,278) (1,865,027) (829,629) (3,100,934) Cash Paid to Employees for Services (264,649) (960,746) (474,936) (1,700,331)Net Cash Provided by (Used in) Operating Activities 813,070 1,104,714 675,962 2,593,746

Cash Flows from Noncapital Financing Activities Transfers to Other Funds - (539,874) (100,000) (639,874)Net Cash Provided by (Used in) Noncapital Financing Activities - (539,874) (100,000) (639,874)

Cash Flows from Capital and Related Financing Activities Interest Paid on Revenue Bonds and Customer Deposits - (22) (21,268) (21,290) Acquisi� on and Construc� on of Capital Assets (323,675) (16,157) (356,875) (696,707) Principal Paid on Capital Debt - - (105,000) (105,000)Net Cash Provided by (Used in) Capital and Related Financing Activities (323,675) (16,179) (483,143) (822,997)

Cash Flows from Investing Activities Interest Received 51,866 43,346 19,169 114,381 Net Cash Provided by (Used in) Investing Activities 51,866 43,346 19,169 114,381

Net Increase (Decrease) in Cash and Cash Equivalents 541,261 592,007 111,988 1,245,256

Cash and Cash Equivalents, Beginning of Year 2,947,402 2,405,522 1,327,604 6,680,528

Cash and Cash Equivalents, End of Year $ 3,488,663 $ 2,997,529 $ 1,439,592 $ 7,925,784

160

CITY OF LEESBURG, FLORIDACOMBINING STATEMENT OF CASH FLOWS

NONMAJOR ENTERPRISE FUNDSFOR THE YEAR ENDED SEPTEMBER 30, 2016

Business-type Activities - Enterprise FundsTotal

Stormwater Solid Communication NonmajorFund Waste Services Enterprise Funds

Reconciliation of Cash and Cash Equivalents to Balance Sheet

Total Unrestricted Equity in Pooled Cash and Cash Equivalents $ 3,488,663 $ 2,900,728 $ 1,322,401 $ 7,711,792 Total Restricted Equity in Pooled Cash and Cash Equivalents - 96,801 117,191 213,992 Total Cash and Cash Equivalents, End of Year $ 3,488,663 $ 2,997,529 $ 1,439,592 $ 7,925,784

Reconciliation of Operating Income (Loss)to Net Cash Provided by (Used in) OperatingActivities

Opera� ng Income (Loss) $ 568,907 $ 1,062,139 $ 486,290 $ 2,117,336 Adjustments to Reconcile Opera� ng Income (Loss) to Net Cash Provided by (Used in) Opera� ng Ac� vi� es: Deprecia� on and Amor� za� on 186,187 22,730 320,008 528,925 Decrease (Increase) in Assets: Customer Accounts (Net of Allowances) 5,074 5,717 (51,985) (41,194) Prepaid Items - - 4,490 4,490 Inventory - - 11,380 11,380 Decrease (Increase) in Deferred Ou� low Pension 196 711 327 1,234 Increase (Decrease) in Liabili� es: Accounts Payable 42,376 23,989 (119,345) (52,980) Due to Other Governments - 79 (2,301) (2,222) Accrued Expenses (1,546) 4,853 2,117 5,424 Other Postemployment Bene� ts Liability 8,872 35,488 13,308 57,668 Net Pension Liability 11,534 41,799 19,209 72,542 Decommissioning/Postclosure Payable - (62,012) - (62,012) Other (2,064) (7,346) 3,233 (6,177) Increase (Decrease) in Deferred In� ow Pension (6,466) (23,433) (10,769) (40,668)Net Cash Provided by (Used in) Operating Activities $ 813,070 $ 1,104,714 $ 675,962 $ 2,593,746

161


162

INTERNAL SERVICE FUNDS

Internal Service Funds account for the � nancing of goods and services provided by one City departmentor agency to other City departments or agencies on a cost-reimbursement basis. Descrip� ons ofindividual funds in this category are presented below.

General Employees’ Health Insurance accounts for the employee welfare bene� t maintained by theCity that provides medical care for par� cipants through insurance and directly through the WellnessCenter.

Workers’ Compensation Insurance accounts for the employee welfare bene� t which provides coverageof medical and rehabilita� on costs and lost wages for employees injured at work.

Risk Management accounts for the costs of liability, property and casualty, automobile, public o� cial,and employment prac� ces insurance.

Fleet Maintenance accounts for the purchase and maintenance of all City vehicles.

163


INTERNAL SERVICE FUNDSSEPTEMBER 30, 2016

GeneralEmployees'

HealthInsurance

Workers'Compensation

InsuranceRisk

ManagementFleet

Maintenance Total

Assets

Current Assets:Pooled Cash and Investments $ 3,041,203 $ 1,596,251 $ 165,356 $ 4,342,301 $ 9,145,111Miscellaneous Receivables 126,323 22,222 - - 148,545Inventory - - - 476,512 476,512

Total Current Assets 3,167,526 1,618,473 165,356 4,818,813 9,770,168

Noncurrent Assets:Property, Plant and Equipment:

Buildings - - - 564,988 564,988Improvements Other Than Buildings - - - 148,127 148,127Machinery and Equipment - - - 20,298,375 20,298,375Less Accumulated Deprecia� on and Amor� za� on - - - (16,882,774) (16,882,774)

Total Property, Plant and Equipment - - - 4,128,716 4,128,716Total Assets 3,167,526 1,618,473 165,356 8,947,529 13,898,884

Deferred Outflows of ResourcesDeferred Ou� lows-Pension Related 5,724 1,992 - 28,566 36,282

Liabilities

Current Liabili� es:Accounts and Retainage Payable 791,691 1,000 5 92,343 885,039Other Accrued Expenses - 422 - 12,525 12,947Claims Payable 387,439 643,187 - - 1,030,626Compensated Absences - - - 22,158 22,158

Total Current Liabili� es 1,179,130 644,609 5 127,026 1,950,770

Noncurrent Liabili� es:Claims Payable - 1,194,489 - - 1,194,489Compensated Absences - - - 18,130 18,130Other Postemployment Bene� ts - - - 58,120 58,120Net Pension Liability 3,358 1,679 - 127,373 132,410

Total Noncurrent Liabili� es 3,358 1,196,168 - 203,623 1,403,149Total Liabilities 1,182,488 1,840,777 5 330,649 3,353,919

Deferred Inflows of ResourcesDeferred In� ows-Pension Related 2,201 487 - 9,806 12,494

Net PositionNet Investment in Capital Assets - - - 4,128,716 4,128,716Unrestricted (De� cit) 1,988,561 (220,799) 165,351 4,506,924 6,440,037

Total Net Position (Deficit) $ 1,988,561 $ (220,799) $ 165,351 $ 8,635,640 $ 10,568,753

164

CITY OF LEESBURG, FLORIDACOMBINING STATEMENT OF REVENUES, EXPENSES,

AND CHANGES IN FUND NET POSITIONINTERNAL SERVICE FUNDS


GeneralEmployees'

HealthInsurance

Workers'Compensation

InsuranceRisk

ManagementFleet

Maintenance Total

Operating RevenuesCharges for Services $ 5,164,046 $ 553,234 $ 648,648 $ 1,939,189 $ 8,305,117Other 424,283 159,925 - - 584,208

Total Operating Revenues 5,588,329 713,159 648,648 1,939,189 8,889,325

Operating ExpensesPersonal Services 70,056 27,071 - 511,160 608,287Supplies and Materials 190,832 - - 25,278 216,110Maintenance Costs 4,435 - - 513,459 517,894Contracted Services 962,909 21,271 59 8,744 992,983Other Services and Charges 5,979 - - 52,464 58,443Deprecia� on and Amor� za� on - - - 905,537 905,537Claims Expense 4,770,291 1,231,937 - - 6,002,228Insurance Premiums 409,766 102,373 648,648 - 1,160,787

Total Operating Expenses 6,414,268 1,382,652 648,707 2,016,642 10,462,269

Operating Income (Loss) (825,939) (669,493) (59) (77,453) (1,572,944)

Nonoperating Revenues (Expenses)Investment Income 51,961 31,510 2,657 72,344 158,472Gain (Loss) on Sale of Assets - - - 72,560 72,560

Total Nonoperating Revenues (Expenses) 51,961 31,510 2,657 144,904 231,032

Income Before Contributions andTransfers (773,978) (637,983) 2,598 67,451 (1,341,912)

Transfers and Capital ContributionsCapital Contribu� ons - - - 375,000 375,000Transfers from Other Funds - - - 3,627 3,627

Total Transfers and Capital Contributions - - - 378,627 378,627

Change in Net Position (773,978) (637,983) 2,598 446,078 (963,285)

Total Net Position, Beginning of Year 2,762,539 417,184 162,753 8,189,562 11,532,038

Total Net Position (Deficit), End of Year $ 1,988,561 $ (220,799) $ 165,351 $ 8,635,640 $ 10,568,753

165

CITY OF LEESBURG, FLORIDA COMBINING STATEMENT OF CASH FLOWS

INTERNAL SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2016

General Employees' Workers'

Health Compensation Risk FleetInsurance Insurance Management Maintenance Total

Cash Flows from Operating Activities Receipts from Customers and Users $ 5,143,135 $ 548,175 $ 648,648 $ 1,939,189 $ 8,279,147 Cash Paid to Suppliers for Goods and Services (1,637,561) (126,323) (648,707) (555,253) (2,967,844) Cash Paid for Insurance Claims (3,948,839) (861,372) - - (4,810,211) Cash Paid to Employees for Services (67,795) (25,990) - (440,842) (534,627)Net Cash Provided by (Used in)

Operating Activities (511,060) (465,510) (59) 943,094 (33,535)

Cash Flows from Noncapital Financing Activities Transfers from Other Funds - - - 3,627 3,627 Net Cash Provided by (Used in) Noncapital Financing Activities - - - 3,627 3,627

Cash Flows from Capital and Related Financing Activities

Acquisi� on and Construc� on of Capital Assets - - - (1,723,913) (1,723,913) Proceeds from the Disposi� on of Capital Assets - - - 83,851 83,851 Net Cash Provided by (Used in) Capital and

Related Financing Activities - - - (1,640,062) (1,640,062)

Cash Flows from Investing Activities Investment Income 51,961 31,510 2,657 72,344 158,472 Net Cash Flows from Investing Activities 51,961 31,510 2,657 72,344 158,472

Net Increase (Decrease) in Cash and Cash Equivalents (459,099) (434,000) 2,598 (620,997) (1,511,498)

Cash and Cash Equivalents, Beginning of Year 3,500,302 2,030,251 162,758 4,963,298 10,656,609

Cash and Cash Equivalents, End of Year $ 3,041,203 $ 1,596,251 $ 165,356 $ 4,342,301 $ 9,145,111

Reconciliation of Operating Income (Loss)to Cash Provided by (Used in) Operating Activites

Opera� ng Income (Loss) $ (825,939) $ (669,493) $ (59) $ (77,453) $ (1,572,944) Adjustment to Reconcile Opera� ng Income to Cash Flows Provided by (Used in) Opera� ng Ac� vi� es: Deprecia� on - - - 905,537 905,537 Decrease (Increase) in Miscellaneous Receivables (20,911) (5,059) - - (25,970) Decrease (Increase) in Inventory - - - 49,452 49,452 Decrease (Increase) in Deferred Ou� lows Pension 57 29 - 322 408 Increase (Decrease) in Accounts Payable 411,394 (2,679) - (4,760) 403,955 Increase (Decrease) in Accrued Expenses 729 736 - (708) 757 Increase (Decrease) in Claims Payable (77,865) 210,218 - - 132,353 Increase (Decrease) in OPEB - - - 58,120 58,120 Increase (Decrease) in Net Pension Liability 3,358 1,679 - 18,915 23,952 Increase (Decrease) in Other Liabili� es - - - 4,273 4,273 Increase (Decrease) in Deferred In� ows Pension (1,883) (941) - (10,604) (13,428)Net Cash Provided by (Used in) Operating Activites $ (511,060) $ (465,510) $ (59) $ 943,094 $ (33,535)

Noncash Investing, Capital or FinancingActivites

Contribu� on of Capital Assets - - - $ 375,000 $ 375,000

166


167


168

COMMUNITY REDEVELOPMENT AGENCY FUNDSCommunity Redevelopment Agency Funds, a major special revenue fund of the City, consists ofthe Greater Leesburg Community Redevelopment Agency, Carver Heights/Montclair AreaCommunity Redevelopment Agency, and U.S. Highway 441 & 27 Community RedevelopmentAgency which are incremental tax districts established pursuant to Florida Statutes. The fundaccounts for the incremental increase in ad valorem tax revenue collected within thedesignated community redevelopment areas. Revenues must be u� lized and expended inaccordance with the respec� ve community redevelopment plans.

169

CITY OF LEESBURG, FLORIDABALANCE SHEET

COMMUNITY REDEVELOPMENT AGENCY FUNDSSEPTEMBER 30, 2016

GreaterLeesburg

CommunityRedevelopment

Agency Fund

Carver Heights/Montclair Area


Agency Fund

U.S. Highway441/27


Agency Fund

TotalGovernmental

Funds

AssetsPooled Cash and Investments $ 511,824 $ - $ 1,090,533 $ 1,602,357Restricted Cash - 236,542 4,871,970 5,108,512Cash with Fiscal Agent 87,793 - - 87,793Due from Other Governments - 46,048 - 46,048

Total Assets $ 599,617 $ 282,590 $ 5,962,503 $ 6,844,710


LiabilitiesAccounts Payable $ 17 $ 507 $ 17,760 $ 18,284Due to Other Funds - 69,940 - 69,940Deposits - - 4,000 4,000

Total Liabilities 17 70,447 21,760 92,224

Fund BalancesRestricted for:

Capital Projects 511,807 212,143 4,411,021 5,134,971Debt Service 87,793 - 1,529,722 1,617,515

Total Fund Balances 599,600 212,143 5,940,743 6,752,486

Total Liabilities and Fund Balances $ 599,617 $ 282,590 $ 5,962,503 $ 6,844,710

170

CITY OF LEESBURG, FLORIDASCHEDULE OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCESCOMMUNITY REDEVELOPMENT AGENCY FUNDS


GreaterLeesburg


Agency Fund

Carver Heights/Montclair Area


Agency Fund

U.S. Highway441/27


Agency Fund Total

RevenuesTaxes $ 300,946 $ 162,675 $ - $ 463,621Intergovernmental - 95,378 - 95,378Miscellaneous:

Interest 11,610 - 34,997 46,607Other - - 47 47

Total Revenues 312,556 258,053 35,044 605,653


Economic Environment 196,022 16,365 28,877 241,264Debt Service:

Principal Payments 52,000 293,598 235,000 580,598Interest and Fees 28,843 13,541 669,494 711,878

Capital Outlay - 42,660 - 42,660Total Expenditures 276,865 366,164 933,371 1,576,400

Net Change in Fund Balances 35,691 (108,111) (898,327) (970,747)

Fund Balances, Beginning of Year 563,909 320,254 6,839,070 7,723,233

Fund Balances, End of Year $ 599,600 $ 212,143 $ 5,940,743 $ 6,752,486

171


172

STATISTICAL SECTION(Unaudited)

Sta� s� cal schedules di� er from � nancial statements because they usually cover more than one � scal yearand may present non-accoun� ng data. These schedules re� ect social and economic data and � nancialtrends of the City of Leesburg, Florida, and are designed to give the reader insights into the � nancial posi� onof the City of Leesburg not readily apparent from the � nancial statements.

Sta� s� cal data are presented to provide greater detail informa� on than reported in the preceding basic� nancial statements. This informa� on in many cases has been spread throughout the report and is broughttogether here for greater clarity. Sta� s� cal data are not necessary for fair presenta� on in conformity withgenerally accepted accoun� ng principles.

The schedule en� tled “Computa� on of Legal Debt Margin,” which is recommended for inclusion in theComprehensive Annual Financial Report by the Government Finance O� cers Associa� on of the UnitedStates and Canada, is not included within this report inasmuch as no legal debt margin has been establishedfor the City of Leesburg pursuant to the Cons� tu� on of the State of Florida, Florida Statutes, City ordinancesor other laws applicable to the City of Leesburg. The City has had no general obliga� on debt outstandingduring the past ten years.

173


174

CITY OF LEESBURG, FLORIDASTATISTICAL SECTION

This part of the City of Leesburg's Comprehensive Annual Financial Report presents detailed informa� on as a contextfor understanding what the informa� on in the � nancial statements, note disclosures and required supplementaryinforma� on says about the City's overall � nancial health.

CONTENTSPages

Financial Trends 176-185These schedules contain trend informa� on to help the reader understand how the City's � nancial performance and well-being have changed over � me.

Revenue Capacity 186-193These schedules contain informa� on to help the reader assess the City's most signi� cant local revenue source, the property tax.

Debt Capacity 194-211These schedules present informa� on to help the reader assess the a� ordability of the City'scurrent levels of outstanding debt and the City's ability to issue addi� onal debt in the future.

Demographic and Economic Information 212-213These schedules o� er demographic and economic indicators to help the reader understand the environment within which the City's � nancial ac� vi� es take place.

Operating Information 214-216These schedules contain service and infrastructure data to help the reader understand how the informa� on in the City's � nancial report relates to the services the City provides and the ac� vi� es it performs.

Source: Unless otherwise noted, the informa� on in these schedules is derived from the Comprehensive AnnualFinancial Reports (CAFR) for the relevant year. The City implemented GASB Statements 63 and 65 for � scalyear 2012/13. These statements were applied prospec� vely; retroac� ve restatements of all yearspresented were not done.

175

CITY OF LEESBURG, FLORIDANET POSITION BY COMPONENT

LAST TEN YEARS(UNAUDITED ACCRUAL BASIS OF ACCOUNTING)

PAGE 1 OF 2

2007 2008 2009 2010 2011 Governmental Activities Net Investment in Capital Assets $ 61,246,416 $ 63,626,050 $ 62,536,165 $ 61,099,625 $ 52,626,016 Restricted 3,107,601 2,587,501 2,814,583 3,512,585 3,377,029 Unrestricted 10,489,876 8,278,356 11,601,438 7,516,041 4,242,639 Total Governmental Activities, Net Position $ 74,843,893 $ 74,491,907 $ 76,952,186 $ 72,128,251 $ 60,245,684

Business-Type Activities Net Investment in Capital Assets $ 65,528,268 $ 106,456,752 $ 103,374,013 $ 111,328,645 $ 114,637,624 Restricted 29,206,718 3,644,206 6,132,597 5,821,230 7,527,921 Unrestricted 25,021,125 14,945,266 18,348,984 22,889,167 32,384,015 Total Business-Type Activities, Net Position $ 119,756,111 $ 125,046,224 $ 127,855,594 $ 140,039,042 $ 154,549,560

Primary Government Net Investment in Capital Assets $ 126,774,684 $ 170,082,802 $ 165,910,178 $ 172,428,270 $ 167,263,640 Restricted 32,314,319 6,231,707 8,947,180 9,333,815 10,904,950 Unrestricted 35,511,001 23,223,622 29,950,422 30,405,208 36,626,654 Total Primary Government, Net Position $ 194,600,004 $ 199,538,131 $ 204,807,780 $ 212,167,293 $ 214,795,244

Note: This informa� on is provided as part of the Financial Trend Data.

176

CITY OF LEESBURG, FLORIDANET POSITION BY COMPONENT


PAGE 2 OF 2

2012 2013 2014 2015 2016 Governmental Activities Net Investment in Capital Assets $ 45,112,290 $ 45,611,934 $ 46,464,509 $ 20,864,865 $ 22,304,328 Restricted 3,401,352 3,785,234 3,833,845 6,117,848 7,253,410 Unrestricted 4,112,046 7,729,470 10,327,265 5,133,917 5,457,637 Total Governmental Activities, Net Position $ 52,625,688 $ 57,126,638 $ 60,625,619 $ 32,116,630 $ 35,015,375

Business-Type Activities Net Investment in Capital Assets $ 119,679,245 $ 115,138,968 $ 116,147,661 $ 169,318,499 $ 156,110,922 Restricted 9,168,859 9,816,240 14,966,539 425,869 215,183 Unrestricted 37,871,836 44,628,044 40,319,508 50,230,057 52,852,630 Total Business-Type Activities, Net Position $ 166,719,940 $ 169,583,252 $ 171,433,708 $ 219,974,425 $ 209,178,735

Primary Government Net Investment in Capital Assets $ 164,791,535 $ 160,750,902 $ 162,612,170 $ 190,183,364 $ 178,415,250 Restricted 12,570,211 13,601,474 18,800,384 6,543,717 7,468,593 Unrestricted 41,983,882 52,357,514 50,646,773 55,363,974 58,310,267 Total Primary Government, Net Position $ 219,345,628 $ 226,709,890 $ 232,059,327 $ 252,091,055 $ 244,194,110


177

CITY OF LEESBURG, FLORIDACHANGES IN NET POSITION


PAGE 1 OF 4

Expenses 2007 2008 2009 2010 2011Governmental Activities: General Government. $ 4,224,359 $ 6,738,686 $ 5,784,598 $ 6,382,361 $ 4,516,704 Public Safety 14,771,631 17,945,406 15,273,940 16,155,330 16,325,651 Physical Environments 1,300,500 1,249,213 1,150,387 1,227,739 133,276 Transporta� on 3,780,654 3,753,138 4,097,419 3,744,933 3,710,588 Economic Environment 682,791 698,052 919,372 672,501 1,072,203 Human Services 51,666 72,602 70,084 44,150 37,567 Culture and Recrea� on 5,677,875 6,503,046 5,271,228 4,941,906 5,090,129 Interest on Long Term Debt 1,148,265 1,145,566 1,223,864 2,272,405 1,778,947 Total Governmental Activities Expenses 31,637,741 38,105,709 33,790,892 35,441,325 32,665,065

Business-Type Activities: Electric 53,857,113 64,081,610 66,020,760 60,427,920 53,561,809 Gas 7,193,152 8,239,648 6,298,715 6,689,610 5,964,253 Water 5,743,068 5,847,250 6,781,008 6,595,898 6,828,647 Wastewater 7,187,653 7,639,188 8,148,026 8,298,812 7,991,155 Stormwater - - - - 1,392,024 Solid Waste 2,906,956 3,431,491 3,085,584 2,862,176 3,022,958 Communica� on Services 864,566 1,161,766 1,003,830 1,073,772 1,126,159 Airport - - - - - Housing 137,094 516,424 286,307 327,956 162,600 Total Business-Type Activities Expenses 77,889,602 90,917,377 91,624,230 86,276,144 80,049,605

Total Primary Government Expenses $ 109,527,343 $ 129,023,086 $ 125,415,122 $ 121,717,469 $ 112,714,670

Program RevenuesGovernmental Activities: Charges for Services: General Government $ 4,276,155 $ 3,504,864 $ 3,472,053 $ 3,465,531 $ 3,717,159 Public Safety 859,042 878,024 637,249 463,876 474,039 Physical Environment 1,250,789 1,524,355 1,544,948 1,556,173 47,831 Transporta� on 782,433 816,221 954,520 1,006,812 1,129,721 Economic Environment - - - - - Human Services - - - - - Culture and Recrea� on 586,023 637,220 608,654 554,070 497,863 Opera� ng Grants and Contribu� ons 1,859,700 1,498,098 1,447,613 1,522,058 869,208 Capital Grants and Contribu� ons 3,436,369 4,781,781 4,655,197 3,189,342 413,865 Total Governmental Activities Program Revenues 13,050,511 13,640,563 13,320,234 11,757,862 7,149,686

Business-Type Activities: Charges for Services 89,878,655 100,856,226 100,505,333 99,206,014 92,776,933 Opera� ng Grants and Contribu� ons - 4,525 9,044 292,907 87,958 Capital Grants and Contribu� ons 3,408,402 1,039,657 1,965,837 1,188,719 576,880 Total Business-Type Activities Program Revenues 93,287,057 101,900,408 102,480,214 100,687,640 93,441,771

Total Primary Government Program Revenue $ 106,337,568 $ 115,540,971 $ 115,800,448 $ 112,445,502 $ 100,591,457

Net (Expense)/Revenue Governmental Ac� vi� es $ (18,587,230) $ (24,465,146) $ (20,470,658) $ (23,683,463) $ (25,515,379) Business-Type Ac� vi� es 15,397,455 10,983,031 10,855,984 14,411,496 13,392,166 Total Primary Government Net Expense $ (3,189,775) $ (13,482,115) $ (9,614,674) $ (9,271,967) $ (12,123,213)

Notes: This informa� on is provided as part of the Financial Trend Data. Stormwater was separated from the Governmental Ac� vi� es in 2011 because it became a Business-Type fund. Airport was separated from the Governmental Ac� vi� es in 2015 because it became a Business-Type fund.

178



PAGE 2 OF 4

Expenses 2012 2013 2014 2015 2016Governmental Activities: General Government. $ 8,225,542 $ 2,783,141 $ 4,207,463 $ 3,699,829 $ 4,332,531 Public Safety 14,475,082 12,533,637 13,436,493 13,774,093 15,963,879 Physical Environment 144,545 96,957 164,599 145,811 158,565 Transporta� on 4,110,736 3,452,836 4,026,402 2,447,892 2,494,645 Economic Environment 599,815 617,173 601,599 665,364 704,682 Human Services 520,403 89,462 62,313 56,147 51,380 Culture and Recrea� on 4,486,471 4,000,195 3,787,423 3,724,975 4,165,256 Interest on Long Term Debt 1,749,214 2,055,215 1,014,659 1,245,289 2,295,754 Total Governmental Activities Expenses 34,311,808 25,628,616 27,300,951 25,759,400 30,166,692

Business-Type Activities: Electric 49,405,166 54,765,248 57,032,000 52,304,667 53,842,698 Gas 4,940,220 6,950,627 5,820,355 5,127,380 4,797,668 Water 5,375,968 6,270,374 6,087,119 5,973,909 6,773,513 Wastewater 8,502,626 8,516,232 8,255,645 8,436,457 8,194,810 Stormwater 1,276,750 988,175 930,551 847,931 911,432 Solid Waste 2,979,724 3,137,439 3,105,018 2,724,326 2,863,103 Communica� on Services 1,109,831 1,235,660 1,398,675 1,476,913 1,567,038 Airport - - - 1,997,024 2,368,149 Housing 161,114 - - - - Total Business-Type Activities Expenses 73,751,399 81,863,755 82,629,363 78,888,607 81,318,411

Total Primary Government Expenses $ 108,063,207 $ 107,492,371 $ 109,930,314 $ 104,648,007 $ 111,485,103

Program RevenuesGovernmental Activities: Charges for Services: General Government $ 3,422,553 $ 374,052 $ 403,638 $ 710,031 $ 742,308 Public Safety 470,043 552,253 808,461 937,188 2,487,371 Physical Environment 23,379 - 34,240 124,885 165,014 Transporta� on 1,091,481 1,033,409 1,378,294 467,402 - Economic Environment - - - - - Human Services - - - - - Culture and Recrea� on 480,587 519,757 550,146 593,150 598,701 Opera� ng Grants and Contribu� ons 705,802 764,401 369,821 449,269 201,225 Capital Grants and Contribu� ons 956,929 1,786,112 2,168,876 425,396 559,279 Total Governmental Activities Program Revenues 7,150,774 5,029,984 5,713,476 3,707,321 4,753,898

Business-Type Activities: Charges for Services 86,870,566 93,582,078 92,013,588 91,894,164 92,563,401 Opera� ng Grants and Contribu� ons 48,396 111,360 3,605 - - Capital Grants and Contribu� ons 3,635,520 2,743,174 2,742,221 1,069,990 2,046,797 Total Business-Type Activities Program Revenues 90,554,482 96,436,612 94,759,414 92,964,154 94,610,198

Total Primary Government Program Revenue $ 97,705,256 $ 101,466,596 $ 100,472,890 $ 96,671,475 $ 99,364,096

Net (Expense)/Revenue Governmental Ac� vi� es $ (27,161,034) $ (20,598,632) $ (21,587,475) $ (22,052,079) $ (25,412,794) Business-Type Ac� vi� es 16,803,083 14,572,857 12,130,051 14,075,547 13,291,787 Total Primary Government Net Expense $ (10,357,951) $ (6,025,775) $ (9,457,424) $ (7,976,532) $ (12,121,007)


179



PAGE 3 OF 4

2007 2008 2009 2010 2011General Revenues and Other Changes in Net PositionGovernmental Activities: Property Taxes $ 5,686,325 $ 6,058,634 $ 6,294,746 $ 6,049,834 $ 5,361,571 Other Taxes 6,501,898 6,810,598 6,830,873 6,647,069 6,873,930 Intergovernmental Revenues, Unrestricted 2,234,248 2,293,718 2,105,575 2,253,173 2,055,253 Investment Income 345,542 90,124 251,224 163,166 471,791 Miscellaneous 500,550 227,263 283,484 175,785 115,080 Transfers 8,936,226 8,632,823 7,165,035 3,570,501 7,080,713 Total Governmental Activities 24,204,789 24,113,160 22,930,937 18,859,528 21,958,338

Business-Type Activities: Investment Income 844,203 982,710 677,534 113,102 572,093 Miscellaneous 97,866 1,957,195 162,522 343,997 (10,954) Extraordinary Gain - - - - - Transfers (8,936,226) (8,632,823) (7,165,035) (3,570,501) (7,080,713)Total Business-Type Activities (7,994,157) (5,692,918) (6,324,979) (3,113,402) (6,519,574)

Total Primary Government $ 16,210,632 $ 18,420,242 $ 16,605,958 $ 15,746,126 $ 15,438,764

Changes in Net Position Governmental Ac� vi� es $ 5,775,542 $ 5,683,913 $ 2,460,279 $ (1,611,130) $ (3,557,041) Business-Type Ac� vi� es 7,381,376 9,682,615 4,531,005 7,742,582 6,872,592 Total Government $ 13,156,918 $ 15,366,528 $ 6,991,284 $ 6,131,452 $ 3,315,551


180


LAST TEN YEARS(UNAUDITED BASIS OF ACCOUNTING)

PAGE 4 OF 4

2012 2013 2014 2015 2016General Revenues and Other Changes in Net PositionGovernmental Activities: Property Taxes $ 4,858,023 $ 4,684,694 $ 4,685,546 $ 4,712,444 $ 4,977,437 Other Taxes 6,857,316 6,962,052 7,046,094 7,339,909 7,561,374 Intergovernmental Revenues, Unrestricted 2,040,040 2,071,083 2,204,568 2,375,390 2,468,220 Investment Income 290,742 91,653 105,996 246,563 552,507 Miscellaneous 56,819 217,330 179,925 111,601 95,650 Transfers 6,956,641 11,072,770 10,864,327 (15,323,267) 12,656,351 Total Governmental Activities 21,059,581 25,099,582 25,086,456 (537,359) 28,311,539

Business-Type activities: Investment Income 214,620 1,030,643 566,516 785,893 1,671,744 Miscellaneous 2,109,318 11,954 18,216 131,805 34,595 Extraordinary Gain - - - - 7,727,400 Transfers (6,956,641) (11,072,770) (10,864,327) 15,323,267 (12,656,351) Total Business-Type Activities (4,632,703) (10,030,173) (10,279,595) 16,240,965 (3,222,612)

Total Primary Government General Revenues $ 16,426,878 $ 15,069,409 $ 14,806,861 $ 15,703,606 $ 25,088,927

Changes in Net Position Governmental Ac� vi� es $ (6,101,453) $ 4,500,950 $ 3,498,981 $ (22,589,439) $ 2,898,745 Business-Type Ac� vi� es 12,170,380 4,542,684 1,850,456 30,316,512 10,069,175 Total Government $ 6,068,927 $ 9,043,634 $ 5,349,437 $ 7,727,073 $ 12,967,920


181

CITY OF LEESBURG, FLORIDAFUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS(UNAUDITED MODIFIED ACCRUAL BASIS OF ACCOUNTING)

PAGE 1 OF 2

2007 2008 2009 2010 2011

General Fund Reserved $ 586,207 $ 1,043,782 $ 1,369,020 $ 1,673,892 $ - Unreserved 3,278,639 2,978,290 4,358,936 5,697,109 - Nonspendable - - - - 763,445 Restricted - - - - 652,106 Commi� ed - - - - 2,970 Assigned - - - - - Unassigned - - - - 7,371,865 Total General Fund $ 3,864,846 $ 4,022,072 $ 5,727,956 $ 7,371,001 $ 8,790,386

All Other Governmental Funds Reserved $ 2,963,875 $ 2,403,071 $ 2,610,626 $ 1,836,289 $ - Unreserved Stormwater Fund 552,544 1,229,741 1,557,861 1,755,566 - Redevelopment Agency Funds 943,569 2,319,072 4,572,684 13,875,882 - Special Revenue Funds 1,577,648 897,422 816,455 533,772 - Nonspendable - - - - 2,976 Restricted - - - - 13,097,454 Assigned - - - - 1,324,710 Unassigned - - - - (200,150)Total All Other Governmental Funds $ 6,037,636 $ 6,849,306 $ 9,557,626 $ 18,001,509 $ 14,224,990

Notes: This informa� on is provided as part of the Financial Trend Data. Beginning in 2011:

a. Implementa� on of GASB 54 changed the fund balance designa� ons.b. Stormwater is no longer classi� ed as a governmental fund.

Beginning in 2015, Airport is no longer classi� ed as a governmental fund.

182

CITY OF LEESBURG, FLORIDAFUND BALANCES OF GOVERNMENTAL FUNDS


PAGE 2 OF 2

2012 2013 2014 2015 2016

General Fund Reserved $ - $ - $ - $ - $ - Unreserved - - - - - Nonspendable 633,615 121,153 50,075 35,361 77,154 Restricted 659,224 963,818 1,017,596 1,332,191 1,474,147 Commi� ed 4,563 4,033 2,919 3,285 4,138 Assigned 1,000,000 437,312 235,269 322,141 1,263,580 Unassigned 7,239,114 8,592,849 10,689,238 12,684,625 9,928,466 Total General Fund $ 9,536,516 $ 10,119,165 $ 11,995,097 $ 14,377,603 $ 12,747,485

All Other Governmental Funds Reserved $ - $ - $ - $ - $ - Unreserved Stormwater Fund - - - - - Redevelopment Agency Funds - - - - - Special Revenue Funds - - - - - Nonspendable 478 63 - - - Restricted 11,815,626 10,915,723 9,082,457 10,336,400 10,557,678 Assigned 1,071,842 898,723 1,348,285 - 6,623,792 Unassigned (197,714) (369,538) (151,106) (38,449) (10,211) Total All Other Governmental Funds $ 12,690,232 $ 11,444,971 $ 10,279,636 $ 10,297,951 $ 17,171,259

Notes: This informa� on is provided as part of the Financial Trend Data. Beginning in 2011:

a. Implementa� on of GASB 54 changed the fund balance designa� ons.b. Stormwater is no longer classi� ed as a governmental fund.

Beginning in 2015, Airport is no longer classi� ed as a governmental fund.

183

CITY OF LEESBURG, FLORIDACHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS


PAGE 1 OF 2

2007 2008 2009 2010 2011

Revenues Taxes $ 12,188,222 $ 12,869,231 $ 13,125,620 $ 12,893,021 $ 12,235,501 Licenses, Permits and Assessments 835,735 774,430 571,963 421,374 457,142 Intergovernmental 6,951,061 8,209,539 8,073,940 6,516,608 3,371,485 Charges for Services 1,752,548 2,083,117 2,178,942 2,211,398 595,467 Fines and Forfeitures 248,483 331,313 219,845 144,991 163,197 Impact Fees 255,791 335,914 133,249 12,295 150 Interest 540,698 297,268 206,424 164,588 203,118 Miscellaneous 5,305,481 4,350,653 4,329,343 4,566,046 4,946,580 Total Revenues 28,078,019 29,251,465 28,839,326 26,930,321 21,972,640

Expenditures General Government 1,828,424 3,496,612 3,162,527 3,476,819 2,851,945 Public Safety 14,734,007 15,021,295 14,428,426 14,043,510 14,238,088 Physical Environment 911,501 758,074 705,068 700,369 65,877 Transporta� on 1,959,937 1,853,750 2,032,911 1,911,023 2,063,548 Economic Environment 655,320 639,294 868,017 615,937 989,381 Human Services 51,666 66,475 67,892 44,150 37,567 Culture and Recrea� on 5,278,244 5,187,536 4,433,489 3,807,355 3,893,225 Capital Outlay 15,171,230 8,319,179 7,057,151 6,667,866 3,179,436 Debt Service: Principal Payments 546,486 596,540 699,248 749,000 822,963 Interest and Fees 1,148,265 1,133,566 1,223,864 2,272,405 1,778,947 Total Expenditures 42,285,080 37,072,321 34,678,593 34,288,434 29,920,977

Excess of Revenues Over (Under) Expenditures (14,207,061) (7,820,856) (5,839,267) (7,358,113) (7,948,337)

Other Financing Sources (Uses) Sale of Capital Assets - 156,929 97,633 47,121 77,760 Transfers In 13,647,670 12,189,197 12,185,286 11,394,539 12,427,585 Transfers Out (4,711,446) (3,556,374) (4,561,077) (7,714,268) (5,158,576) Issuance of Debt - - 2,531,629 13,717,649 - Total Other Financing Sources (Uses) 8,936,224 8,789,752 10,253,471 17,445,041 7,346,769

Net Change In Fund Balances $ (5,270,837) $ 968,896 $ 4,414,204 $ 10,086,928 $ (601,568)

Debt Service Expenditures as a Percentage 6.3% 6.0% 7.0% 10.9% 9.7% of Noncapital Expenditures


184

CITY OF LEESBURG, FLORIDACHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS


PAGE 2 OF 2

2012 2013 2014 2015 2016

Revenues: Taxes $ 11,715,341 $ 11,906,834 $ 12,002,708 $ 12,362,071 $ 12,538,811 Licenses, Permits and Assessments 458,798 494,057 815,905 1,006,590 2,620,855 Intergovernmental 3,506,336 4,042,615 4,354,607 2,743,845 2,635,483 Charges for Services 541,758 588,212 896,780 1,023,985 553,600 Fines and Forfeitures 159,137 186,038 165,356 156,640 134,622 Impact Fees - - 68,685 106,719 159,680 Interest 50,943 193,761 25,755 173,320 394,035 Miscellaneous 4,604,621 1,502,208 1,450,423 776,766 740,160 Total Revenues 21,036,934 18,913,725 19,780,219 18,349,936 19,777,246

Expenditures: General Government 2,730,096 1,999,318 3,257,326 3,242,396 3,601,492 Public Safety 14,472,095 14,295,487 13,823,843 12,837,293 13,052,692 Physical Environment 60,774 61,867 77,191 69,833 92,080 Transporta� on 1,797,161 1,705,097 1,954,674 1,380,217 1,466,803 Economic Environment 516,751 534,375 563,007 572,566 541,578 Human Services 520,403 89,462 62,313 56,147 51,380 Culture and Recrea� on 3,813,858 3,711,224 2,346,340 2,906,347 3,022,899 Capital Outlay 3,342,072 3,391,687 4,169,896 3,105,201 1,570,631 Debt Service: Principal Payments 802,334 1,782,127 1,964,296 1,972,996 2,297,062 Interest and Fees 1,749,214 2,007,786 1,619,394 1,197,860 1,515,971 Total Expenditures 29,804,758 29,578,430 29,838,280 27,340,856 27,212,588

Excess Of Revenue Over (Under) Expenditures (8,767,824) (10,664,705) (10,058,061) (8,990,920) (7,435,342)

Other Financing Sources (Uses): Sale of Capital Assets 68,233 11,750 13,781 3,141 25,808 Transfers In 11,617,850 13,759,425 13,650,373 13,974,025 19,862,843 Transfers Out (3,706,887) (4,103,870) (2,895,496) (3,585,425) (7,210,119) Issuance of Debt - 334,788 - 1,000,000 - Total Other Financing Sources (Uses) 7,979,196 10,002,093 10,768,658 11,391,741 12,678,532

Net Change In Fund Balances $ (788,628) $ (662,612) $ 710,597 $ 2,400,821 $ 5,243,190

Debt Service Expenditures as a Percentage 9.6% 14.5% 14.0% 13.1% 14.9% of Noncapital Expenditures


185

CITY OF LEESBURG, FLORIDAASSESSED VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS

Less: TaxableCentrally Tax-Exempt Property4 Value for Total

Fiscal Real Personal Assessed Real Personal Centrally Operating DirectYear1 Property2 Property Property3&5 Property2 Property Assessed3 Millages Tax Rates

2007 $ 1,425,384,915 $ 337,206,689 $ 519,776 $ 321,177,532 $ 124,925,272 $ - $ 1,317,008,576 4.5000

2008 1,688,428,580 372,375,507 553,180 335,529,839 128,329,323 - 1,597,498,105 4.2500

2009 1,748,767,789 299,835,709 563,123 412,232,355 106,449,581 112,317 1,530,372,368 4.3179

2010 1,643,094,805 307,393,370 592,083 402,058,703 116,537,221 126,521 1,432,357,813 4.3179

2011 1,462,752,813 294,871,468 441,398 375,488,425 108,013,558 107,628 1,274,456,068 4.3179

2012 1,345,917,698 284,962,752 - 355,981,439 108,052,050 - 1,166,846,961 4.3179

2013 1,292,100,846 289,671,068 - 355,770,105 108,475,254 - 1,117,526,555 4.3179

2014 1,290,485,803 283,156,954 - 358,695,894 99,001,842 - 1,115,945,021 4.3179

2015 1,312,948,029 280,285,609 - 365,395,977 105,531,482 - 1,122,306,179 4.3179

2016 1,361,579,903 289,307,979 - 391,733,605 121,489,389 - 1,137,664,888 4.2678

Notes: 1As of December 31st of each year listed.2Except for the Save Our Homes cap noted in next sentence, Florida State Law requires all property to be assessed at current fair marketvalue. The Save Our Homes cap establishes a limita� on of the lesser of 3% or the increase in the Consumer Price Index during the relevantyear, on property qualifying for and receiving Homestead Exemp� on of $25,000.

3Beginning in FY2007, private railroad lines are no longer included as part of Centrally Assessed Property. 4New legisla� on (196.183,F.S.) allows for personal and centrally assessed property to be eligible for Homestead Exemp� on. In addi� on,196.031(b), F.S. allows for an addi� onal $25,000 of Homestead Exemp� on. Also, (196.075, F.S.) allows for an addi� onal $50,000 for anyperson who has a� ained age 65 and whose household income does not exceed $20,000 (a "quali� ed resident"). New legisla� on was passedin the Summer of 2007 that caps millage rates, except with special approval, at a level allowing tax revenue to grow no more than the relatedpropor� on to per capita income and new construc� on.

5Beginning in FY2012, Florida Department of Revenue reported that there were no longer railroad lines in Leesburg, resul� ng in no CentrallyAssessed Property.

Source: Lake County Property Appraiser

186

CITY OF LEESBURG, FLORIDAPROPERTY TAX RATES

DIRECT AND OVERLAPPING GOVERNMENTSLAST TEN FISCAL YEARS

(RATE PER $1,000 OF ASSESSED VALUE)

TotalDirect Overlapping Governments

Northwest Lake County WaterFiscal School Lake Ambulance Hospital Water ManagementYear City District County District District Authority District Total

2007 4.5000 7.6480 5.9470 0.5289 1.0000 0.2530 0.4620 20.3389

2008 4.2500 7.6980 4.7410 0.4651 1.0000 0.2130 0.4158 18.7829

2009 4.3179 7.5170 4.7612 0.4651 1.0000 0.2130 0.4158 18.6900

2010 4.3179 7.5320 4.7612 0.4651 1.0000 0.2130 0.4158 18.7050

2011 4.3179 7.5230 4.8410 0.3853 1.0000 0.2405 0.4158 18.7235

2012 4.3179 7.3940 4.8410 0.3853 1.0000 0.2405 0.3313 18.5100

2013 4.3179 7.3200 4.9209 0.3853 1.0000 0.2554 0.3313 18.5308

2014 4.3179 7.1700 4.9209 0.3853 1.0000 0.2554 0.3283 18.3778

2015 4.3179 7.2460 5.5456 0.4629 1.0000 0.2554 0.3164 19.1442

2016 4.2678 7.3570 5.3051 0.4629 1.0000 0.2554 0.3023 18.9505

Note: The Florida Cons� tu� on limits the City and County millage capacity (non-debt related) to 10.000 mills.


187

CITY OF LEESBURG, FLORIDAPRINCIPAL PROPERTY TAXPAYERS

FOR THE CURRENT CALENDAR YEAR AND NINE YEARS AGO

2016 2007Percentage Percentage

of Total of Total 2016 City 2007 City

Taxable Taxable Taxable TaxableAssessed Assessed Assessed Assessed

Taxpayer Value Rank Value Value Rank Value

Cutrale Citrus Juices, U.S.A., Inc. $ 25,981,400 1 2.28% $ 48,021,451 1 3.65%

Minute Maid Company 19,873,052 2 1.75%

CCRC - Lake Port Square, LLC 17,669,940 3 1.55% 23,229,488 5 1.76%

Lake Square Mall Realty Management LLC 13,309,581 4 1.17%

Embarq-Florida, Inc (� a Sprint Florida) 12,988,256 5 1.14% 38,296,185 3 2.91%

Shoppes of Lake Village, LTD 6,635,546 6 0.58% 8,051,854 9 0.61%

City of Leesburg 6,520,602 7 0.57%

Covanta Lake II Inc. 6,328,709 8 0.56%

Lowe's Home Centers Inc. 6,251,057 9 0.55% 10,213,545 7 0.78%

Walgreens Co. 6,039,470 10 0.53%

First Berkshire Business Trust 40,529,533 2 3.08%

SDG Macerich Proper� es LP 26,732,240 4 2.03%

Arlington Ridge LLC 14,203,167 6 1.08%

Wal-Mart Stores, Inc. 8,448,332 8 0.64%

Colonial Bank (� a First Federal Savings) 7,768,047 10 0.59%

Subtotal 121,597,613 10.69% 225,493,842 17.12%

All Others 1,016,067,275 89.31% 1,091,514,734 82.88%

Total $ 1,137,664,888 100.00% $ 1,317,008,576 100.00%

Notes: Taxable Values (Florida Statutes Sec� on 193.011) are as of January 1, 2006 and 2015, and represent total property values including realproperty, personal property and centrally assessed property.Blank informa� on in Taxable Assessed Value does not mean the business no longer exists.


188

CITY OF LEESBURG, FLORIDAPROPERTY TAX LEVIES AND COLLECTIONS


Collected within theFiscal Year of the Levy1 Total Collections to Date

FiscalYear Taxes Levied Collections Percentage

Ended for the Fiscal Percentage for Previous ofSept. 30, Year Amount of Levy Years of Levy Amount Levy

2,007 $ 5,859,148 $ 5,655,750 1 $ 31,044 $ 5,686,794 1

2,008 6,789,367 6,210,604 1 (151,970) 2 6,058,634 1

2,009 6,607,995 6,318,550 1 (23,804) 3 6,294,746 1

2,010 6,184,778 5,958,860 1 90,974 6,049,834 1

2,011 5,502,974 5,317,825 1 43,746 5,361,571 1

2,012 5,038,328 4,846,506 1 11,517 4,858,023 1

2,013 4,825,368 4,651,799 1 32,894 4,684,693 1

2,014 4,818,539 4,658,873 1 26,673 4,685,546 1

2,015 4,846,006 4,695,830 1 16,614 4,712,444 1

2,016 4,855,326 4,698,260 1 8,789 4,707,049 1

Notes: 1Amounts collected within the � scal year of the levy are inclusive of legally available early payment discounts(ranging from 4% to 1%).

2During Fiscal Year 2008, the Lake County Property Appraiser received an unfavorable ruling on the 2006Agricultural Classi� ca� on Lawsuit. This resulted in a loss to the City totaling $425,000 in ad valorem taxes forprevious years.

3During Fiscal Year 2009, the Florida Department of Revenue made an adjustment totaling $84,669 related to anaircra� owned by the Villages Equipment Company as it was determined that aircra� are not taxable as tangibleproperty.


189

CITY OF LEESBURG, FLORIDAGOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE

LAST TEN FISCAL YEARS(UNAUDITED ACCRUAL BASIS OF ACCOUNTING)

Utility CommunicationsFiscal Property Local Option Sales Franchise Service ServicesYear Tax Gas Tax Tax Fees Tax Tax Total

2007 $ 5,686,324 $ 822,027 $ 1,672,965 $ 86,244 $ 2,858,214 $ 1,062,448 $ 12,188,222

2008 6,058,634 620,290 1,623,035 101,585 3,058,468 1,099,675 12,561,687

2009 6,294,746 624,118 1,531,527 116,382 3,126,745 1,148,314 12,841,832

2010 6,049,834 630,727 1,526,403 109,857 3,214,820 1,078,903 12,610,544

2011 5,361,571 639,735 1,611,777 111,280 3,182,188 1,049,816 11,956,367

2012 4,858,023 614,906 1,647,465 133,135 3,102,871 1,107,841 11,464,241

2013 4,684,694 594,535 1,629,454 125,992 3,195,794 1,155,595 11,386,064

2014 4,685,546 603,878 1,740,150 138,873 3,255,534 1,058,798 11,482,779

2015 4,712,444 625,941 1,891,707 243,760 3,404,080 1,014,467 11,892,399

2016 4,707,049 500,950 1,982,521 270,733 3,640,419 1,037,210 12,138,882

190

CITY OF LEESBURG, FLORIDAGREATER LEESBURG COMMUNITY REDEVELOPMENT AGENCY

HISTORICAL REVENUES

HISTORICAL REVENUESCity of Lake County Total

Year Taxable Values Lake County Leesburg Ambulance Water Authority Revenues

2007 $ 152,321,905 $ 289,316 $ 226,539 $ 26,626 $ 12,737 $ 555,218

2008 156,159,630 295,299 269,219 29,052 13,305 606,875

2009 148,158,153 306,656 285,507 30,753 14,084 637,000

2010 148,221,674 270,736 252,126 26,985 12,463 562,310

2011 132,822,347 206,301 188,958 16,802 10,525 422,586

2012 124,993,979 171,163 156,846 13,940 8,736 350,685

2013 121,370,315 154,878 141,982 12,614 8,398 317,872

2014 121,719,997 156,736 143,416 12,765 8,483 321,400

2015 122,062,401 179,978 144,821 15,469 8,566 348,834

2016 117,626,545 154,793 125,156 13,507 7,490 300,946

Note: The City of Leesburg created the Greater Leesburg Community Redevelopment Agency (GLCRA) on May 28, 1996 (Resolu� on4994) pursuant to Sec� on 163.512 Florida Statutes. The agency is part of the City's Comprehensive Plan to enhance thedowntown district and surrounding areas. The base year was established in 1996 with an assessed taxable value of$86,757,505. The agency generates a majority of its annual income from tax increment revenues and will expire in 2026.


191

CITY OF LEESBURG, FLORIDACARVER HEIGHTS/MONTCLAIR AREA COMMUNITY REDEVELOPMENT AGENCY

HISTORICAL REVENUES



2007 $ 89,281,278 $ 108,081 $ 84,629 $ 9,947 $ 4,758 $ 207,415

2008 96,310,253 140,978 129,100 13,931 6,380 290,389

2009 88,132,712 169,363 158,077 17,027 7,798 352,265

2010 88,111,616 132,286 123,599 13,147 6,140 275,172

2011 81,604,263 105,111 96,906 8,561 5,397 215,975

2012 77,113,815 84,826 78,486 6,908 4,372 174,592

2013 74,700,591 74,107 68,587 6,035 4,057 152,786

2014 76,430,497 81,935 75,683 6,673 4,477 168,768

2015 76,432,394 93,216 75,691 8,012 4,477 181,396

2016 74,770,987 83,259 68,077 7,265 4,074 162,675

Note: The City of Leesburg created the Carver Heights/Montclair Area Community Redevelopment Agency (CHCRA) on December 10,2001 (Ordinance 01-61) pursuant to Sec� on 163.512 Florida Statutes. The agency was created to iden� fy and address blightedcondi� ons within its boundaries and to enable the City to establish a mechanism to � nance redevelopment projects through TaxIncrement Financing (TIF). The base year was established in 2001 with an assessed value of $57,980,259. The agency generates amajority of its annual income from tax increment revenues.

On July 13, 2015, The City amended the plan for this CRA, expanded the boundaries and extended the � meframe to add thirty (30)years from the � me of the amendment. The agency will expire in 2046.


192

CITY OF LEESBURG, FLORIDAU.S. HIGHWAY 441 & 27 COMMUNITY REDEVELOPMENT AGENCY

HISTORICAL REVENUES



2007 $ 479,923,989 $ 357,913 $ 280,252 $ 32,939 $ 15,756 $ 686,860

2008 482,782,230 575,014 527,335 56,906 26,061 1,185,316

2009 454,799,607 576,740 539,090 58,068 26,704 1,200,602

2010 454,362,582 446,622 418,845 44,277 20,959 930,703

2011 388,395,355 157,433 148,248 12,822 8,257 326,760

2012 348,560,375 - - - - -

2013 331,802,542 - - - - -

2014 325,800,698 - - - - -

2015 326,674,034 - - - - -

2016 333,357,278 - - - - -

Note: The City of Leesburg created the U.S. Highway 441 & 27 Community Redevelopment Agency on February 13, 2006 (Ordinance06-13) pursuant to Sec� on 163.512 Florida Statutes. The agency determined the existence of blighted areas and is part of theCity's plan to improve condi� ons within the corridor areas. The base year was established in 2006 with an assessed taxable valueof $352,255,087. In FY 2016, the agency was rebased with an assessed taxable value of $333,357,278. The agency generates amajority of its annual income from tax increment revenues which expires in 2046.

In FY 2012, taxable values dropped below the base year values resul� ng in zero tax revenue for the CRA.


193

CITY OF LEESBURG, FLORIDARATIOS OF OUTSTANDING DEBT BY TYPE


Governmental Activities Business-Type Activities

Capital Utility System TotalFiscal Improvement Notes Capital Revenue Notes Primary % of Personal PerYear Bonds Payable Lease Bonds Payable Government Income1 Capita2

2007 $ 23,280,000 $ 172,167 $ - $ 85,428,019 $ 12,638,632 $ 121,518,818 18.33% $ 33,266

2008 22,795,000 117,647 349,925 84,745,143 13,041,000 121,048,715 19.41% 31,044

2009 22,295,000 2,481,116 300,617 84,416,583 13,041,000 122,534,316 19.62% 30,460

2010 30,335,000 7,442,159 268,223 83,008,166 15,355,000 136,408,548 20.85% 31,520

2011 29,960,000 7,027,950 234,469 81,514,599 13,665,000 132,402,018 21.24% 30,785

2012 29,575,000 11,145,788 199,297 79,968,888 12,705,971 133,594,944 20.16% 32,697

2013 30,417,164 9,905,310 162,648 80,307,282 17,635,000 138,427,404 19.96% 33,398

2014 29,120,000 8,624,202 124,460 64,352,688 32,038,000 134,259,350 18.51% 34,445

2015 28,500,000 8,310,998 84,668 62,871,451 30,991,000 130,758,117 17.45% 34,782

2016 27,760,000 6,795,400 43,204 72,494,584 15,528,000 122,621,188 15.34% 36,327

Notes: Details regarding the City's outstanding debt can be found in Note 8 of the Financial Statements.1See Demographic and Economic Sta� s� cs for personal income and popula� on data. 2US Department of Commerce, Bureau of Economic Analysis (h� p://bea.gov) for Lake County. The actual per capita personal income for the City isnot known. The County's per capita � gures are mul� plied by the City's popula� on to determine the total personal income for the City.

194

CITY OF LEESBURG, FLORIDADIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT

SEPTEMBER 30, 2016

Estimated Percentage Estimated ShareTaxing District Debt Outstanding Applicable of Overlapping Debt

Direct Debt – City of Leesburg $ 34,598,604

Overlapping Debt

Lake County Board of County Commissioners $ 22,380,000 6.99% 1,565,001

School District 6.99% -

Subtotal – Overlapping Debt 1,565,001

Total Direct and Overlapping Debt $ 36,163,605

Notes: The City has no general obliga� on debt. U� lity revenue bonds are excluded.

Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedulees� mates the por� on of the outstanding debt of those overlapping governments that is borne by the residents and businesses ofLeesburg. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the en� re debtburden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is aresident, and therefore responsible for repaying the debt, of each overlapping government.

Sources: Lake County Board of County CommissionersLake County School DistrictAssessed value data used to es� mate applicable percentage provided by the Lake County Property Appraiser.

195


196

CITY OF LEESBURG, FLORIDALEGAL DEBT MARGIN INFORMATION

The City of Leesburg has no general obliga� on debt outstanding as of September 30, 2016.

There is no legal debt margin established for the City of Leesburg pursuant to Florida Statutes,City ordinance or other laws applicable to the City of Leesburg.

197

CITY OF LEESBURG, FLORIDAPLEDGED REVENUE COVERAGE

CAPITAL IMPROVEMENT REVENUE BONDS/NOTESSERIES 1999, 2004, 2009, & 2013


FY ENDING FY ENDING FY ENDING FY ENDINGSEPT. 30, 2007 SEPT. 30, 2008 SEPT. 30, 2009 SEPT. 30, 2010

Half-Cent Sales Tax1 $ 1,001,858 $ 964,117 $ 898,594 $ 899,922 Guaranteed En� tlement2 309,234 309,234 309,234 309,234 Net Revenues Available 1,311,092 1,273,351 1,207,828 1,209,156 Debt Service on 1999 Bonds5 494,645 497,476 494,796 332,398 Debt Service on Refunding Promissory Note, Series 20096 95,731 Combined Refunded & Refunding Debt 428,129 ServiceDebt Service Coverage on Series 1999 Bonds & 2009 Note 2.65 X 2.56 X 2.44 X 2.82 X2009 Senior Lien Note Required Minimum Coverage 1.30 X3 1.30 X3 1.30 X3 1.30 X3

Net Revenues Available After Debt Service on 1999 Bonds & 2009 Note 816,447 775,875 713,032 781,027 Plus Public Service Tax4 2,858,214 3,058,468 3,126,745 3,214,820 Net Revenues Available 3,674,661 3,834,343 3,839,777 3,995,847

Debt Service on Series 2004 Bonds7 1,114,470 1,111,220 1,111,020 1,109,645 Debt Service on Series 2013 Bonds8 - - - - Debt Service Coverage on Series 2004 & 2013 Bonds 3.30 X 3.45 X 3.46 X 3.60 XRequired Minimum Coverage 1.30 X3 1.30 X3 1.30 X3 1.30 X3

Net Revenues Available after all Debt Service $ 2,560,191 $ 2,723,123 $ 2,728,757 $ 2,886,202

Notes: 1Gross Sales Tax Revenues are de� ned as the proceeds of the local governmental Half-Cent Sales Tax as described in TitleXIV, Chapter 218, Part VI, Florida Statutes.

2Guaranteed Por� on-State Revenue Sharing is the por� on of state revenue sharing funds available to the City that arepledged, or set aside as a trust for the payment of principal or interest on the bonds pursuant to Title XIV, Chapter 218,Part II, Florida Statutes.

31.30X Debt Service Coverage is not a Financial Covenant, rather an Addi� onal Bonds Test Requirement. No addi� onalsenior lien parity bonds can be issued.

4Public Service Tax is a tax that may be levied by a municipality on the purchase of electricity, metered natural gas,lique� ed petroleum gas, manufactured gas, and water service pursuant to Title XII, Chapter 166, Sec� on 231, FloridaStatues.

198


CAPITAL IMPROVEMENT REVENUE BONDS/NOTESSERIES 1999, 2004, 2009, & 2013


FY ENDING FY ENDING FY ENDING FY ENDING FY ENDING FY ENDINGSEPT. 30, 2011 SEPT. 30, 2012 SEPT. 30, 2013 SEPT. 30, 2014 SEPT. 30, 2015 SEPT. 30, 2016

$ 930,949 $ 913,146 $ 993,946 $ 1,069,082 $ 1,162,792 $ 1,232,094 309,234 309,234 309,234 309,234 309,234 309,234

1,240,183 1,222,380 1,303,180 1,378,316 1,472,026 1,541,328 - - - - - -

528,880 478,474 478,778 478,608 477,966 476,850 528,880 478,474 478,778 478,608 477,966 476,850

2.34 X 2.55 X 2.72 X 2.88 X 3.08 X 3.23 X

1.30 X3 1.30 X3 1.30 X3 1.30 X3 1.30 X3 1.30 X3

711,303 743,906 824,402 899,708 994,060 1,064,478 3,182,188 3,102,871 3,195,794 3,255,533 3,404,080 3,640,419 3,893,491 3,846,777 4,020,197 4,155,241 4,398,140 4,704,897

1,108,485 1,106,460 746,685 - - - - - - 986,090 1,016,563 1,016,563

3.51 X 3.48 X 5.38 X 4.21 X 4.33 X 4.63 X 1.30 X3 1.30 X3 1.30 X3 1.30 X3 1.30 X3 1.30 X3

$ 2,785,006 $ 2,740,317 $ 3,273,512 $ 3,169,151 $ 3,381,578 $ 3,688,334

Notes: 5Series 1999Resolu� on 5725, adopted August 12, 1999, the City authorized the issuance of the Refunding and Capital ImprovementRevenue Bonds, Series 1999 pledging the revenues as de� ned in Notes 1 &2.

6Series 2009Resolu� on 8557, adopted October 26, 2009 , the City authorized the issuance of a "bank quali� ed" loan to refund all ofthe outstanding Refunding and Capital Improvement Revenue Bonds, Series 1999 pledging the revenues as de� ned inNotes 1& 2.

7Series 2004Resolu� on 7162, adopted July 12, 2004, the City authorized the issuance of the Capital Improvement Revenue Bonds,Series 2004, that closed on August 4, 2004, pledging the net available revenues a� er considering the Series 1999 Bonds. In addi� on, Public Service Tax revenues were pledged to cover the Series 2004 Bonds as de� ned in Note 4.

8Series 2013Resolu� ons 9181 and 9182, adopted April 22, 2013, the City authorized the Series 2013 Capital Improvement Bondsrefunding the Series 2004 Bond issuance, pledging the net available revenues a� er considering the Series 2009 Note. Inaddi� on, Public Service Tax revenues were pledged to cover the Series 2013 Bonds.

199


SERIES 2015 GREATER LEESBURG CRA REVENUE NOTELAST TWO FISCAL YEARS

FY ENDING FY ENDINGSEPT. 30,

2015SEPT. 30,

2016

Revenue: City of Leesburg $ 144,821 $ 125,156 Lake County 204,013 175,790 Interest 6,448 14,228 Total 355,282 315,174 Debt Service on 2015 Note 6,224 80,343 Debt Service Coverage on Series 2015 Note 57.08 X 3.92 XNet Revenues Available after Debt Service on 2015 Note $ 349,058 $ 234,831

Note: This informa� on is provided as part of the Financial Trend Data and should be presented in a ten year format. The currentpresenta� on begins with the � rst year of the Series 2015 Note.Resolu� on 13 of the Greater Leesburg Community Redevelopment Agency, adopted January 12, 2015, authorized theissuance of the Redevelopment Revenue Note, Series 2015, a "quali� ed tax-exempt obliga� on". This note closed January14, 2015.Resolu� on 9533, of the City Commission of the City of Leesburg, adopted January 12, 2015, authorized and approved theissuance by the Greater Leesburg Community Redevelopment Agency of a $1,000,000 principal amount RedevelopmentRevenue Note, Series 2015. This resolu� on authorized the execu� on and delivery of an interlocal agreement, with saidCommunity Redevelopment Agency, pursuant to which the City will covenant to budget and appropriate non-ad valoremrevenues to make debt service payments, on said note, to the extent increment revenues are insu� cient.

200


201


SERIES 2008 CARVER HEIGHTS/MONTCLAIR AREA CRA REVENUE NOTELAST EIGHT FISCAL YEARS


Revenue: City of Leesburg $ 158,077 $ 123,599 $ 96,906 $ 78,486 Lake County 194,188 151,573 119,069 96,106 Other 4,100 1,866 2,453 1,639 Total 356,365 277,038 218,428 176,231 Debt Service on 2008 Note 195,340 200,534 203,353 203,503 Debt Service Coverage on Series 2008 Note 1.82 X 1.38 X 1.07 X 0.87 XNet Revenues Available after Debt Service on 2008 Note $ 161,024 $ 76,505 $ 15,075 $ (27,272) 1

Note: This informa� on is provided as part of the Financial Trend Data and should be presented in a ten year format. The currentpresenta� on begins with the � rst year of the Series 2008 Note.Resolu� on 16 of the Community Redevelopment Agency for the Carver Heights/Montclair Area, adopted December 8, 2008authorized the issuance of the Revenue Note Series 2008, a "quali� ed tax-exempt obliga� on", pledging increment revenues. Thisnote closed December 23, 2008.Resolu� on 8349, adopted December 8, 2008, and as amended by Resolu� on 8357, adopted Dec. 22, 2008, the City authorized thecredit support as needed for the Community Redevelopment Agency for the Carver Heights/Montclair Area of its Revenue Note,Series 2008, pledging the net available revenues a� er considering the Series 2009 Note and 2004 Bonds to the extent incrementrevenues are insu� cient, but not in excess of the Reserve Account Requirement.1Due to the downturn in property values, the revenues were not su� cient to cover the debt service. However, the fund balancefor the CRA was able to cover the de� ciency.

202


SERIES 2008 CARVER HEIGHTS/MONTCLAIR AREA CRA REVENUE NOTELAST EIGHT FISCAL YEARS


$ 68,587 $ 75,683 $ 75,691 $ 68,077 84,199 93,085 105,705 94,598

3,471 (508) 1,926 (740) 156,257 168,260 183,322 161,935 203,659 203,822 203,993 306,399

0.77 X 0.83 X 0.90 X 0.53 X

$ (47,402) 1 $ (35,562) 1 $ (20,671) 1 $ (144,464) 1

203


SERIES 2009 US HIGHWAY 441 & 27 AREA CRA REVENUE BONDSLAST SEVEN FISCAL YEARS


Revenue: City of Leesburg $ 418,845 $ 148,248 $ - $ - Lake County 511,857 178,512 - - Other 28,492 27,404 10,292 41,694 Total 959,194 354,164 10,292 41,694 Debt Service on 2008 Note 354,753 695,431 695,131 799,831 Debt Service Coverage on 2.70 X 0.51 X 0.01 X 0.05 X Series 2008 NoteNet Revenues Available after

Debt Service on 2008 Note $ 604,441 $ (341,267) 1 $ (684,839) 1 $ (758,137) 1

Note: This informa� on is provided as part of the Financial Trend Data and should be presented in a ten year format. The currentpresenta� on begins with the � rst year of the Series 2009 Bonds.Resolu� on 10 of the Community Redevelopment Agency for the U.S. Highway 441 & 27 Area, adopted October 12, 2009,authorized the issuance of the Tax Increment Revenue Bonds, Series 2009 to re� nance the Agency's Subordinate CapitalImprovement Bond An� cipa� on Note, Series 2008 to � nance the construc� on of projects in the redevelopment area. Thepledged revenues are the tax increment revenues and amounts held in the funds and accounts established by this agreement.Resolu� on 8525, adopted October 12, 2009, the City authorized the issuance of the Tax Increment Revenue Bonds, Series 2009for the Community Redevelopment Agency for the US Highway 441 & 27 Area.1Due to the downturn in property values, the debt service payment is being paid from the bond proceeds in accordance withbond covenants.

204


SERIES 2009 US HIGHWAY 441 & 27 AREA CRA REVENUE BONDSLAST SEVEN FISCAL YEARS

FY ENDING FY ENDING FY ENDINGSEPT. 30, 2014 SEPT. 30, 2015 SEPT. 30, 2016

$ - $ - $ - - - -

9,612 9,061 29,659 9,612 9,061 29,659

801,231 797,481 903,419 0 X 0 X 0 X

$ (791,619) 1 $ (788,420) 1 $ (873,760) 1

205


ELECTRIC SYSTEM REVENUE BONDS/NOTESSERIES 2004, 2007A, 2007B, 2010, 2013, 2014 & 2016



Gross Revenues1 $ 60,862,278 $ 70,302,636 $ 71,566,530 $ 73,280,305 Less Opera� on and Maintenance Expenses2 51,342,881 59,761,821 61,012,704 55,737,126 Net Revenues Available3 9,519,397 10,540,815 10,553,826 17,543,179 Debt Service on 2004 Bonds4,5 779,813 1,095,875 1,090,975 1,090,095 Debt Service on 2007A Bonds6,7 see note 4 551,906 551,906 551,906 Debt Service on 2007B Bonds6,7 682,713 682,713 946,921 Debt Service on 2010 Note8

Debt Service on 2013 Note9


Debt Service on 2016 Bond11


Total Debt Service 779,813 2,330,494 2,325,594 946,921 Debt Service Coverage 12.21 X 4.52 X 4.54 X 6.78 XRequired Minimum Coverage 1.25 X 1.25 X 1.25 X 1.25 X Total Net Revenues less Electric Utility Debt Service $ 8,739,585 $ 9,444,940 $ 8,228,232 $ 14,954,257

Notes: 1Gross Revenues are de� ned as all income and earnings derived by the City from the ownership, opera� on, leasing, or use of the system,and investment income excluding capital expansion and system improvement grants.

2Opera� on and Maintenance Expenses are de� ned as the cost of opera� on and maintenance as current expenses, paid or accrued, lessdeprecia� on and amor� za� on expense.

3Net Revenues are de� ned as gross revenues less opera� on and maintenance expenses.4Series 2004Resolu� on 7141 and supplemented by Resolu� on 7142, adopted June 14, 2004, the City authorized the issuance of the Electric System Revenue Bonds, Series 2004, that closed on July 14, 2004, pledging the net revenues derived by the City from the opera� on of theElectric System.

5The � rst three years of payments for these bonds are interest only. Payments began on October 1, 2004 and are due semiannually April1 and October 1 therea� er. The annualized interest payments for � scal years 2004, 2005 and 2006 were paid from the CapitalizedInterest fund of $1,726,419.

6Series 2007A & 2007BResolu� on 7964, adopted July 23, 2007, the City amended Resolu� on 7141 for the purpose of authorizing the issuance of the ElectricSystem Revenue Bonds Series 2007A and Taxable Electric System Revenue Bonds, Series 2007B ("Series 2007 Bonds") on a parity withthe City's outstanding Electric System Revenue Bonds, Series 2004.

7The � rst two years of payments for these bonds are interest only. Payments began on October 1, 2007 and are due semiannually April 1and October 1 therea� er. The annualized interest payments for � scal years 2007 and 2008 were paid from the Capitalized Interest fundof $1,341,602 along with interest earnings thereon.

206


ELECTRIC SYSTEM REVENUE BONDS/NOTESSERIES 2004, 2007A, 2007B, 2010, 2013, 2014 & 2016



$ 62,355,773 $ 57,419,323 $ 62,808,975 $ 60,924,004 $ 59,587,185 $ 61,069,325 49,169,688 45,244,248 47,863,727 50,744,245 46,454,026 46,934,467 13,186,085 12,175,075 14,945,248 10,179,759 13,133,159 14,134,858

1,093,025 1,089,885 1,090,160 742,180 - - 551,906 551,906 551,906 551,906 551,906 551,906 945,283 942,799 939,469 940,011 939,425 953,427

4,004 2,852 48,898 - - - 84,360 273,600 619,747 625,154

300,378 622,788 1,042,279 see note 11see note 12

2,594,218 2,587,442 2,714,793 2,808,075 2,733,866 3,172,766 5.08 X 4.71 X 5.51 X 3.63 X 4.80 X 4.46 X 1.25 X 1.25 X 1.25 X 1.25 X 1.25 X 1.25 X

$ 10,591,867 $ 9,587,633 $ 12,230,455 $ 7,371,684 $ 10,399,293 $ 10,962,092

Notes: 8Series 2010Resolu� on 8692, adopted August 4, 2010, the City authorized the issuance of an "up to $20,000,000" Note with a 3 year interestonly drawdown facility.

9Series 2013Resolu� on 9199, adopted May 28, 2013, the City authorized the Series 2013 Electric System Note refunding the Electric SystemRevenue Note, Series 2010 on a parity with the exis� ng Electric System Bonds.

10Series 2014Resolu� on 9366, adopted March 10, 2014, the City authorized the Series 2014 Electric System Refunding Revenue Note torefund the Electric System Revenue Bonds, Series 2004 on a parity with the exis� ng Electric System Bonds & Note.

11Series 2016Resolu� ons 9792 and 9793, adopted May 9, 2016, the City authorized the Series 2016 Electric System Refunding Revenue Bondto advance refund the outstanding Electric System Revenue Bonds, Series 2007A, current refunding the Outstanding ElectricSystem Refunding Revenue Note, Series 2014 on a parity with the exis� ng Electric System Bonds & Note. Payments for the debtservice begin October 1, 2016 and are due Semi-annually April 1 and October 1 therea� er.

12Series 2016Resolu� on 9816, adopted June 13, 2016, the City authorized the Series 2016 Electric System Refunding Revenue Note to refundall of the City's Electric System Refunding Revenue Note, Series 2013 on a parity with the exis� ng Electric System Bonds & Note. Payments for the debt service begin October 1, 2016 and are due Semi-annually April 1 and October 1 therea� er.

207


UTILITY SYSTEM REVENUE BONDS/NOTES(GAS, WATER AND WASTEWATER SYSTEMS)

SERIES 2004, 2007A, 2007B, 2010, 2013 & 2016LAST TEN FISCAL YEARS


Gross Revenues1 $ 24,018,350 $ 25,371,745 $ 23,988,825 $ 25,299,925 Less Expenses2 17,799,914 19,022,708 16,634,389 16,584,012 Net Revenues Available3 6,218,436 6,349,037 7,354,436 8,715,913 Debt Service on 2004 Bonds4 1,075,151 1,507,914 1,509,114 1,508,914 Debt Service on 2007A Bonds5 see note 6 1,039,044 6 1,039,044 6 1,341,444 Debt Service on 2007B Bonds5 see note 6 63,130 6 63,130 6 77,245 Debt Service on 2010 Note7



Total Debt Service 1,075,151 2,610,088 2,611,288 2,927,603 Debt Service Coverage 5.78 X 2.43 X 2.82 X 2.98 XRequired Minimum Coverage 1.15 X 1.15 X 1.15 X 1.15 XPlus Capacity Charges 742,963 813,605 390,044 187,425 Debt Service Coverage inclusive of Capacity Charges 6.47 X 2.74 X 2.97 X 3.04 XRequired Minimum Coverage inclusive of Capacity Charges 1.25 X 1.25 X 1.25 X 1.25 X

Total Net Revenues less Electric Utility Debt Service $ 5,886,248 $ 4,552,554 $ 5,133,192 $ 5,975,735

Notes: 1Gross Revenues are de� ned pursuant to Resolu� on 7143 adopted June 14, 2004, as all income and earnings derived by the Cityfrom the ownership, opera� on, leasing, or use of the system, and investment income, excluding capital expansion and systemimprovement grants.

2Expenses are de� ned as Opera� on and Maintenance Expenses paid or accrued, less deprecia� on and amor� zed expenses.3Net Revenues and Pledged Revenues are de� ned as gross revenues less opera� on and maintenance expenses plus capacity charges.4Series 2004 Resolu� on 7143 and supplemented by Resolu� on 7144, adopted June 14, 2004, the City authorized the issuance of the U� litySystem Revenue Bonds, Series 2004, that closed on July 14, 2004.

5Series 2007A & 2007B Resolu� on 7965, adopted July 23, 2007, the City amended Resolu� on 7143 authorizing the issuance of the U� lity System RevenueBonds Series 2007A and Taxable U� lity System Revenue Bonds, Series 2007B ("Series 2007 Bonds") on a parity with the City'soutstanding U� lity System Revenue Bonds, Series 2004.

6First two years of payments for these bonds are interest only. Payments began on October 1, 2007 and are due Semi-annually April1 and October 1 therea� er. The annualized interest payments for � scal years 2007 and 2008 were paid from the CapitalizedInterest fund of $1,341,602 along with interest earnings thereon..

208


UTILITY SYSTEM REVENUE BONDS/NOTES(GAS, WATER AND WASTEWATER SYSTEMS)

SERIES 2004, 2007A, 2007B, 2010, 2013 & 2016LAST TEN FISCAL YEARS


$ 25,678,857 $ 23,727,878 $ 24,885,126 $ 24,539,498 $ 24,393,186 $ 24,370,859 15,651,085 14,382,430 16,075,773 14,834,367 13,601,215 13,398,493 10,027,772 9,345,448 8,809,353 9,705,131 10,791,971 10,972,366

1,507,254 1,504,074 1,009,462 - - - 1,338,444 1,339,844 1,345,444 1,335,844 1,335,644 1,342,744

81,065 79,885 78,705 82,230 80,755 80,755 317,615 355,690 358,573 356,455 806,243 815,751

281,985 1,437,331 1,384,031 1,383,907

3,244,378 3,279,493 3,074,168 3,211,860 3,606,673 3,623,157 3.09 X 2.85 X 2.87 X 3.02 X 2.99 X 3.03 X 1.15 X 1.15 X 1.15 X 1.15 X 1.15 X 1.15 X

45,404 24,701 26,171 179,333 279,359 379,060 3.10 X 2.86 X 2.87 X 3.08 X 3.07 X 3.13 X

1.25 X 1.25 X 1.25 X 1.25 X 1.25 X 1.25 X$ 6,828,798 $ 6,090,656 $ 5,761,355 $ 6,672,604 $ 7,464,657 $ 7,728,269

Notes: 7Series 2010Resolu� on 8673, adopted June 28, 2010, the City authorized the issuance of an $8,000,000 note that fully paid o� aprior $8,000,000 Planta� on System seller's note. This prior note was part of the purchase price for this $15,000,000u� lity, and the 2010 note is on parity with the 2004 and 2007A&B bonds.

8Series 2013Resolu� on 9183 and 9184, adopted April 22, 2013, the City authorized the Series 2013 U� lity System Revenue Bondsrefunding the Series 2004 U� lity System Revenue Bonds and is on a parity with the City's other U� lity System RevenueBonds.

9Series 2016 Resolu� ons 9794 and 9795, adopted May 9, 2016, the City authorized the Series 2016 U� lity System RefundingRevenue Bonds to refund the City's Outstanding U� lity System Revenue Bonds, Series 2007A maturing on and a� erOctober 1, 2018, on a parity with the exis� ng U� lity System Bonds & Note. Payments for the debt service beginOctober 1, 2016 and are due Semi-annually April 1 and October 1 therea� er.

209


COMMUNICATIONS SYSTEM CAPITAL IMPROVEMENT REVENUE REFUNDING NOTESERIES 2009

LAST EIGHT FISCAL YEARS

FY ENDING FY ENDING FY ENDING FY ENDING FY ENDINGSEPT. 30, 2009 SEPT. 30, 2010 SEPT. 30, 2011 SEPT. 30, 2012 SEPT. 30, 2013

Gross Revenues $ 1,229,503 $ 1,343,242 $ 1,334,548 $ 1,547,698 $ 1,812,648 Less Opera� on and Maintenance Expense 614,598 709,695 792,226 764,200 903,153 Net Revenues Available 614,905 633,547 542,322 783,498 909,495 Debt Service on FMPA Note1 84,821 73,024 - - - Debt Service on 2009 Note2 - - 143,951 121,447 121,285 Debt Service Coverage on Series 2009 Note 7.25 X 8.68 X 3.77 X 6.45 X 7.50 XRequired Minimum Coverage 1.50 X 1.50 X 1.50 X 1.50 X 1.50 X Net Revenues less Communications Debt Service $ 530,084 $ 560,523 $ 398,371 $ 662,051 $ 788,210

Notes: Resolu� on 8511, adopted September 14, 2009, the City authorized the issuance of the Capital Improvement Revenue Refunding Note, Series2009, that closed on October 2, 2009 to re� nance the outstanding promissory Note Payable to Florida Municipal Power Agency (FMPA). Thepledged revenues for this Note are the Communica� ons Enterprise Revenues, and as needed, legally available Non-Ad Valorem Revenuesbudgeted, appropriated and set aside for the payment of debt service on the Note.1For Fiscal Years 2009 and 2010, the debt service due was for the Promissory Note Payable to FMPA. As noted above, the FMPA Note was paidin full by the issuance of the $1,005,000 Capital Improvement Revenue Refunding Note, Series 2009.

2Pursuant to the covenants for the Series 2009 Note and Sec� on 4.03 of the Loan Agreement, the Communica� ons Enterprise Revenues haveequaled at least 150% of maximum amount of debt service for � scal years ended 2009, 2010 and 2011. The Covenant to Budget andAppropriate from legally available Non-Ad Valorem revenues is released as of the � scal year 2011 audit comple� on.

210


COMMUNICATIONS SYSTEM CAPITAL IMPROVEMENT REVENUE REFUNDING NOTESERIES 2009

LAST EIGHT FISCAL YEARS

FY ENDING FY ENDING FY ENDINGSEPT. 30, 2014 SEPT. 30, 2015 SEPT. 30, 2016

$ 1,701,163 $ 1,834,958 $ 2,051,717 1,032,733 1,117,886 1,226,250

668,430 717,072 825,467 - - -

122,378 123,266 125,753 5.46 X 5.82 X 6.56 X 1.50 X 1.50 X 1.50 X

$ 546,052 $ 593,806 $ 699,714

211

CITY OF LEESBURG, FLORIDADEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS

Unemployment Rate5

PersonalIncome Per Capita

(thousands Personal Median Lake UnitedYear Population1 of dollars)2 Income3 Age4 County Florida States

2007 19,934 $ 663,124 $ 33,266 46.4 4.7% 4.4% 4.8%

2008 20,093 623,767 31,044 42.4 7.5% 7.0% 6.5%

2009 20,506 624,613 30,460 42.1 12.7% 11.5% 9.4%

2010 20,757 654,261 31,520 43.5 12.5% 12.2% 9.3%

2011 20,251 623,427 30,785 41.9 10.2% 9.8% 8.2%

2012 20,263 662,539 32,697 42.6 8.4% 8.2% 7.5%

2013 20,761 693,376 33,398 41.0 6.3% 6.4% 7.0%

2014 21,057 725,308 34,445 40.2 5.8% 5.8% 5.8%

2015 21,547 749,448 34,782 40.2 5.1% 5.2% 5.1%

2016 22,000 799,194 36,327 37.8 4.8% 5.0% 4.8%

Sources: 1Florida Bureau of Economic and Business Research (BEBR) as of December 7, 2016.2The actual per capita personal income for the City is not known. The County's per capita � gures are mul� plied by the City'spopula� on to determine the total personal income for the City.

3U.S. Department of Commerce, Bureau of Economic Analysis (h� p://bea.gov) 4U. S. Census Bureau 2011-2015 American Community Survey 5-Year Es� mates (h� p://fac� inder.census.gov)5State of Florida , Department of Labor and Employment Security, Bureau of Labor Market Informa� on (h� p://freida.labormarke� nfo.com) as of September 2016.

212

CITY OF LEESBURG, FLORIDAPRINCIPAL EMPLOYERS

CURRENT YEAR AND NINE YEARS AGO

2016 2007Percentage of Percentage of

City Total County City Total CountyEmployer1 Employees1 Rank Employment Employees3 Rank Employment

Central Florida Health Alliance (� a LRMC) 1,875 1 1.28% 2,132 1 1.68%

Lifestream Behavioral Center 600 2 0.41% 614 4 0.48%

Lake Port Proper� es 510 3 0.35% 400 8 0.31%

Lake County School District 505 4 0.34% 708 3 0.56%

City of Leesburg 461 5 0.31% 575 5 0.45%

Cutrale Citrus Juices USA Inc. 400 6 0.27% 0.00%

Publix (3 stores) 380 7 0.26% 411 7 0.32%

Lake Sumter State College 280 8 0.19% 739 2 0.58%

Southeast Modular 250 9 0.17%

Lake Sumter EMS, Inc. 227 10 0.16% 278 10 0.22%

Embarq Florida, Inc. 479 6 0.38%

Wal-Mart Stores, Inc. 399 9 0.31%

Total 5,488 3.75% 6,735 5.29%

Lake County Labor Force 146,410 127,214

Sources: 1City of Leesburg 2017 Annual Budget2Labor Force data for Lake County, Florida Labor Market Sta� s� cs, December 2016 h� p://freida.labormarke� nfo.com3City of Leesburg 2007 Annual Budget

213

CITY OF LEESBURG, FLORIDAFULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION


2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

General Government:Legisla� ve 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Execu� ve 8.00 5.00 5.00 5.00 6.00 6.00 6.00 6.00 5.90 4.90 Finance 51.50 50.00 50.00 48.00 47.00 47.00 46.00 46.00 40.00 42.00 Human Resources 6.50 6.00 6.00 6.00 6.00 6.00 6.00 4.85 4.95 4.95 Informa� on Technology (MIS) 12.00 12.00 12.00 11.50 11.50 11.50 12.50 12.50 10.00 11.00 Police: O� cers 76.75 72.00 72.25 72.25 72.25 72.25 72.25 72.00 72.00 65.00 Civilians 30.00 34.25 34.00 34.00 34.00 34.00 34.00 23.00 23.00 25.00 Fire: Fire� ghters and O� cers 68.00 66.00 66.00 65.00 59.00 59.00 60.00 57.00 52.00 46.00 Civilians 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00

GIS / Engineering 13.00 7.00 7.00 4.50 3.50 4.50 5.50 5.50 5.00 5.00 Public Works 26.00 16.10 16.10 18.10 15.10 15.10 6.10 33.10 24.10 23.60 Planning & Zoning 20.00 5.50 5.50 5.70 4.95 2.95 2.95 2.95 2.95 4.25 Housing & EconomicDevelopment 5.00 3.00 3.00 4.00 4.00 2.00 2.00 1.00 1.00 1.00 Library 28.75 22.00 25.47 20.32 23.65 23.65 23.65 21.79 22.64 22.30 Recrea� on 56.50 52.00 52.00 42.00 37.00 33.00 36.00 8.10 15.00 15.00 Airport1 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 - - Subtotal for Governmental Funds 409.00 357.85 361.32 343.37 330.95 323.95 319.95 301.79 284.54 276.00

Business-Type:Electric 55.00 50.00 50.00 50.00 51.00 48.00 53.00 52.00 47.00 46.00 Gas 21.00 19.00 19.00 19.00 19.00 23.00 23.00 23.00 22.00 20.00 Water 30.50 34.50 34.50 37.00 36.00 26.50 27.00 26.50 26.00 24.75 Wastewater 43.50 46.50 46.50 45.00 44.00 45.50 45.00 45.84 43.34 43.09 Stormwater 4.00 4.00 4.00 4.00 4.00 5.00 5.00 5.66 5.66 5.66 Communica� ons 5.00 5.00 5.00 5.00 5.00 5.00 6.00 7.00 6.00 6.00 Solid Waste 19.00 19.90 19.90 17.90 17.90 17.90 17.90 16.90 16.90 16.90 Airport1 - - - - - - - - 2.10 2.10 Carver Heights CRA - 1.00 1.00 - - - - - - - Health Insurance - - - - - - - 0.80 0.80 0.80 Workers Compensa� on - - - - - - - 0.25 0.25 0.25 Fleet Services - - - - - - 8.00 8.00 8.00 8.00 A� ordable Housing - - - - - - - - 1.00 1.00 Building Permits 9.50 6.50 6.50 4.30 4.05 4.05 4.05 4.05 5.05 4.75 Subtotal for Business-Type Funds 187.50 186.40 186.40 182.20 180.95 174.95 188.95 190.00 184.10 179.30

Total 596.50 544.25 547.72 525.57 511.90 498.90 508.90 491.79 468.64 455.30

Note: 1 Airport became its own Business-Type fund in 2015 and no longer has governmental employees. Source: City Annual Budget

214

CITY OF LEESBURG, FLORIDAOPERATING INDICATORS BY FUNCTION


Function 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Police Responses to calls for service 50,893 47,078 44,459 47,345 53,024 51,837 50,312 49,936 53,838 52,740 Part I crimes 1,429 1,565 1,572 1,312 1,246 1,235 1,170 1,191 1,300 1,303 Tra� c crashes & cita� ons 6,553 6,567 6,271 6,729 6,327 7,120 6,808 4,704 4,440 4,225 Fire Emergency responses 5,264 5,831 6,395 7,384 6,581 7,233 6,238 6,471 8,610 10,112 Inspec� ons 1,392 1,344 1,803 1,601 374 215 169 202 210 768 Pre-� re plans 468 306 107 80 107 44 5 5 35 600 Solid Waste Residen� al tons taken to incinerator 8,167 8,167 7,457 8,047 8,552 8,036 7,875 8,633 8,293 8,814 Residen� al tons of recyclables 402 402 390 408 393 389 409 427 421 497 Hand commercial collected 784 784 864 695 624 588 600 483 446 434 Commercial dumpster collected 11,293 11,293 12,598 13,302 12,902 11,743 11,978 12,533 12,041 12,959 Fleet Maintenance Vehicles owned by the City 696 584 609 593 598 589 537 559 543 580 Percent maintained by Fleet 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Preven� ve maintenance complete 675 557 450 506 736 468 524 635 853 853 Community Development Building permits issued within the City 2,878 2,238 1,943 1,944 1,318 1,210 1,491 1,568 1,820 1,539 Construc� on value of permits $ 86,858 $ 82,479 $ 36,367 $ 13,079 $ 35,953 $ 19,419 $ 20,596 $ 28,799 $ 34,907 $ 67,028 (thousands)Culture and Recreation Youth programs 131 166 150 36 36 34 36 36 37 37 Number of bookings at rental facili� es 6,935 6,331 5,782 5,476 2,368 2,269 2,006 1,348 1,554 1,973 Total service hours 22,101 27,035 28,213 28,156 6,075 6,279 5,791 3,901 3,957 5,992 Par� cipants using the pools 23,633 12,818 16,903 16,791 8,462 6,418 9,558 6,995 9,125 11,092 Library service hours 3,270 3,296 2,402 2,607 2,594 2,610 2,624 2,642 2,607 2,623

Circula� on - Adults 265,918 273,159 274,996 275,690 257,912 257,037 264,933 250,172 243,360 240,672 Circula� on - Juvenile 77,636 83,589 86,610 79,208 74,245 83,174 87,151 80,931 83,263 72,223

Internet use 65,210 138,985 141,556 129,735 153,092 141,924 115,637 106,848 104,318 98,238 Electric Number of residen� al customers 17,841 17,732 17,666 21,043 16,307 17,608 17,867 17,944 18,321 23,233 Average daily consump� on (KWh) 34 33 33 30 34 26 31 31 32 32 Gas Number of residen� al customers 10,116 11,300 11,259 11,279 11,241 11,141 11,180 11,205 11,169 11,199 Average daily consump� on (therms) 0.53 0.43 0.57 0.68 0.56 0.41 0.47 0.52 0.50 0.43 Water Number of residen� al customers 15,426 13,885 15,616 17,899 17,896 18,058 18,278 19,077 18,899 19,764 Average daily consump� on (gallons) 322.30 478.44 530.00 469.28 490.05 425.30 404.31 370.73 368.80 404.78 Wastewater Number of residen� al customers 15,515 12,861 13,182 13,316 13,243 13,319 13,487 13,529 13,743 15,714 Average daily sewage treatment 318.44 207.39 224.82 204.62 175.18 195.21 177.95 229.14 203.74 178.19 (gallons)

Source: Various City departments

215

CITY OF LEESBURG, FLORIDACAPITAL ASSET STATISTICS BY FUNCTION


2007 2008 2009 2010 2011 2012 2013 2014 2015 2016FunctionPublic Safety Police sta� ons 1 1 1 1 1 1 1 1 1 1 Fire sta� ons 4 4 4 4 4 4 4 4 4 4 Solid Waste Collec� on Trucks 23 23 19 17 17 18 15 15 18 18 Annexation Acres 2,374.07 271.04 1.63 93.60 316.65 18.88 11.91 19.68 34.46 474.00 Corporate Limits Acres 24,371 24,642 24,653 24,787 25,106 25,125 25,137 25,157 25,191 26,986 Square Miles 38.08 38.50 38.52 38.70 39.23 39.26 39.27 39.31 39.36 42.17 Streets Paved (miles) 79.0 79.0 79.0 82.2 83.1 83.1 83.1 83.1 83.1 83.1 Unpaved (miles) 1.7 1.7 1.7 1.9 1.9 1.9 1.9 1.9 1.9 1.9 Culture and Recreation Rental facili� es 224 225 225 225 225 25 25 25 25 25 Museum 1 1 1 1 1 1 1 1 1 1 Parks facili� es managed 22 23 23 23 23 25 25 45 45 45 Parks acreage 300 300 300 300 300 360 360 360 360 363 Library facili� es 1 1 1 1 1 1 1 1 1 1 Volumes in collec� on 132,914 128,849 129,882 134,961 135,996 142,441 145,961 132,656 132,960 138,570 Electric Primary electric lines within the city (miles) 392 392 440 444 443 445 453 482 486 489 Overhead conductor

replaced (feet) 1,000 41,392 9,870 54,506 59,000 2,000 2,000 6,000 1,100 5,000 Underground primary conductor replaced (feet) 3,000 25,519 24,975 5,000 12,000 2,500 7,400 5,000 9,000 12,530 Gas Gas mains 237 238 239 240 240 240 240 240 243 243 Gate sta� ons 2 2 2 2 2 2 2 2 2 2 Water Water mains (miles) 350 302 375 375 375 332 332 332 332 335 Maximum capacity (millions of gallons) 28 28 28 28 28 28 28 28 28 28 Deep wells 21 21 21 21 19 19 19 19 19 19 Wastewater Sewers force mains (miles) 77 81 81 81 81 87 88 88 88 88 Sewers gravity lines (miles) 165 169 169 169 169 178 179 179 182 182 Li� sta� ons 146 173 162 163 173 174 174 174 174 174 Disposal plants 2 3 3 3 2 2 2 2 2 2 Maximum capacity (millions of gallons per day) 6.50 6.87 8.37 8.37 8.00 8.00 8.00 8.00 8.00 8.00 Communications Fiber op� cs cable (miles) 169 171 173 189 191 220 230 234 250 255

Source: Various City departments

216


217


218

COMPLIANCE SECTION

219


220

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 and

Members of the City Commission City of Leesburg, Florida We have audited, 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, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Leesburg, Florida, (the “City”) as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated March 3, 2017. Internal Control over Financial Reporting

In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

221


City of Leesburg, Florida

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, grant agreements and contracts, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

We reported certain other matters to management of the City in a separate letter dated March 3, 2017.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. MOORE STEPHENS LOVELACE, P.A. Certified Public Accountants Orlando, Florida March 3, 2017

222

INDEPENDENT ACCOUNTANT’S REPORT The Honorable Mayor and

Members of the City Commission City of Leesburg, Florida We have examined the City of Leesburg, Florida’s (the “City”) compliance with the requirements of Section 218.415, Florida Statutes, during the fiscal year ended September 30, 2016. Management is responsible for the City’s compliance with those requirements. Our responsibility is to express an opinion on the City’s compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included 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 examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the City’s compliance with specified requirements. In our opinion, the City complied, in all material respects, with the aforementioned requirements for the fiscal year ended September 30, 2016. MOORE STEPHENS LOVELACE, P.A. Certified Public Accountants Orlando, Florida March 3, 2017

223

INDEPENDENT AUDITOR’S MANAGEMENT LETTER The Honorable Mayor and

Members of the City Commission City of Leesburg, Florida Report on the Financial Statements

We have audited the basic financial statements of the City of Leesburg, Florida (the “City”) as of and for the fiscal year ended September 30, 2016, and have issued our report thereon dated March 3, 2017. Auditor’s Responsibility

We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reporting Requirements

We have also issued our 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; and our Independent Accountant’s Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated March 3, 2017, should be considered in conjunction with this management letter. Prior Audit Findings

Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no recommendations made in the preceding annual financial audit report. Official Title and Legal Authority

Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. The legal authority is disclosed in the notes to the financial statements. Financial Condition

Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require that we apply appropriate procedures and report the results of our determination as to whether or not the City has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit, we determined that the City did not meet any of the conditions described in Section 218.503(1), Florida Statutes.

224


City of Leesburg, Florida Financial Condition (Continued)

Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures. It is management’s responsibility to monitor the City’s financial condition, and our financial condition assessment was based, in part, on representations made by management and the review of financial information provided by same.

Annual Financial Report

Sections 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, require that we apply appropriate procedures and report the results of our determination as to whether the annual financial report for the City for the fiscal year ended September 30, 2016, filed with the Florida Department of Financial Services, pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2016. In connection with our audit, we determined that these two reports were in agreement.

Special District Component Units

Section 10.554(1)(i)5.d., Rules of the Auditor General, requires that we determine whether or not a special district that is a component unit of a county, municipality, or special district, provided the financial information necessary for proper reporting of the component unit, within the audited financial statements of the county, municipality, or special district in accordance with Section 218.39(3)(b), Florida Statutes. In connection with our audit, we determined that all special district component units provided the necessary information for proper reporting in accordance with Section 218.39(3)(b), Florida Statutes.

Other Matters

Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings.

Purpose of this Letter

Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, federal and other granting agencies, the Mayor, City Commission, and applicable management and is not intended to be, and should not be, used by anyone other than these specified parties. MOORE STEPHENS LOVELACE, P.A. Certified Public Accountants Orlando, Florida March 3, 2017

225


226

DEBT DISCLOSURE SECTION(UNAUDITED)

227


228

CITY OF LEESBURG, FLORIDADEBT DISCLOSURE SECTION

TABLE OF CONTENTS

Pages

Historical Statement of Pledged Revenues and Debt Service Coverage 230-239

Inter-U� lity Comparison of Typical Monthly U� lity Bills 240-242

Ten Largest U� lity Customers 244-245

City Ordinances Related to U� lity Rates 246-275

Covenant to Budget and Appropriate Worksheets 276-287

229

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230


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232

HIST

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,401

Debt

Ser

vice

Cov

erag

e:5

Debt

Ser

vice

Cov

erag

e on

Bon

ds 2

.96

X 2

.19

X 2

.54

X 2

.63

X 3

.02

X 2

.88

X 2

.66

X 2

.99

X 3

.43

X 4

.10

XRe

quire

d Co

vera

ge T

est

1.1

5 X

1.1

5 X

1.1

5 X

1.1

5 X

1.1

5 X

1.1

5 X

1.1

5 X

1.1

5 X

1.1

5 X

1.1

5 X

Capi

tal C

ontr

ibu�

on/I

mpa

ct F

ees

517

5

67

273

1

49

32

16

18

126

1

97

115

Am

ount

Ava

ilabl

e fo

r Wor

king

C

apita

l, Tr

ansf

er to

Gen

eral

F

und

& C

apita

l Im

prov

emen

ts

1,9

57

1,8

13

2,0

23

2,1

60

2,6

06

2,4

17

2,5

39

2,8

98

3,5

83

4,4

63

Tota

l Tra

nsfe

rs In

/(O

ut)

(66

4) (

733)

(72

4) (

663)

(70

8) (

763)

(84

1) (

860)

(81

3) (

843)

Net

Ava

ilabl

e fr

om O

pera

�ons

$ 1

,293

$

1,0

80

$ 1

,299

$

1,4

97

$ 1

,898

$

1,6

54

$ 1

,698

$

2,0

38

$ 2

,770

$

3,6

20

Debt

Ser

vice

Cov

erag

e:6

Debt

Ser

vice

Cov

erag

e on

Bon

ds 3

.66

X 2

.73

X 2

.78

X 2

.75

X 3

.04

X 2

.89

X 2

.67

X 3

.08

X 3

.57

X 4

.19

XRe

quire

d Co

vera

ge T

est

1.2

5 X

1.2

5 X

1.2

5 X

1.2

5 X

1.2

5 X

1.2

5 X

1.2

5 X

1.2

5 X

1.2

5 X

1.2

5 X

Not

es:

See

note

s on

Com

bine

d To

tals

Shee

t, pg

. 2

236


237

HIST

ORI

CAL

OPE

RATI

NG

RES

ULT

S - C

OM

BIN

ED G

AS, W

ATER

& W

ASTE

WAT

ER U

TILI

TY(A

MO

UN

TS E

XPRE

SSED

IN T

HOU

SAN

DS)

The

hist

oric

al o

pera

�ng

resu

lts o

f th

e U

�li�

es S

yste

m h

ave

been

pre

pare

d by

indi

vidu

al u

�lity

pur

suan

t to

cer

tain

pro

visio

ns o

f th

e Bo

nd R

esol

u�on

and

ther

efor

e re

�ect

cer

tain

di�

eren

ces f

rom

the

City

's au

dite

d �n

anci

al st

atem

ents

.

Desc

riptio

n20

0720

0820

0920

1020

1120

1220

1320

1420

1520

16

Ope

ra�n

g Re

venu

es$

23,

659

$ 2

5,10

3 $

23,

791

$ 2

5,28

7 $

25,

532

$ 2

3,65

8 $

24,

572

$ 2

4,46

9 $

24,1

73

$ 2

5,32

8

Less

: O

pera

�ng

Expe

nses

17,

800

19,

023

16,

634

16,

585

15,

651

14,

382

16,

076

14,

835

13,6

01

13,

399

Net

Ope

ra�n

g Re

venu

es 5

,859

6

,080

7

,157

8

,702

9

,881

9

,276

8

,496

9

,634

10

,572

1

1,92

9 O

ther

Inco

me

358

2

69

197

1

5 1

46

70

313

7

0 2

21

527

Tota

l Ava

ilabl

e fo

r Deb

t Ser

vice

6,2

17

6,3

49

7,3

54

8,7

17

10,

027

9,3

46

8,8

09

9,7

04

10,7

93

12,

456

Debt

Ser

vice

Serie

s 200

4 Bo

nds1

1,5

20

1,5

23

1,5

25

1,5

24

1,5

22

1,5

19

1,0

35

-

-

-

Serie

s 200

7A a

nd 2

007B

Bon

ds2

-

1,1

02

1,4

32

1,4

34

1,4

34

1,4

40

1,4

34

1,4

33

1,4

36

1,4

85

Serie

s 201

0 N

ote3

-

-

-

235

3

56

360

3

58

816

8

16

797

Se

ries 2

013

Bond

s4 -

-

-

-

-

-

9

87

1,3

96

1,3

94

1,3

84

Tota

l Deb

t Ser

vice

1,5

20

2,6

25

2,9

57

3,1

93

3,3

12

3,3

19

3,8

14

3,6

45

3,6

46

3,6

66

Debt

Ser

vice

Cov

erag

e:5

Debt

Ser

vice

Cov

erag

e on

Bon

ds 4

.09

X 2

.42

X 2

.49

X 2

.73

X 3

.03

X 2

.82

X 2

.31

X 2

.66

X 2

.96

X 3

.40

XRe

quire

d Co

vera

ge T

est

1.1

5 X

1.1

5 X

1.1

5 X

1.1

5 X

1.1

5 X

1.1

5 X

1.1

5 X

1.1

5 X

1.1

5 X

1.1

5 X

Capi

tal C

ontr

ibuti

on/I

mpa

ct F

ees

743

8

13

390

1

87

46

25

26

179

2

79

230

Am

ount

Ava

ilabl

e fo

r Wor

king

C

apita

l, Tr

ansf

er to

Gen

eral

F

und

& C

apita

l Im

prov

emen

ts

5,4

40

4,5

37

4,7

87

5,7

11

6,7

61

6,0

52

5,0

21

6,2

38

7,4

26

9,0

20

Tota

l Tra

nsfe

rs In

/(O

ut)

(2,

308)

(2,

609)

(2,

415)

(2,

088)

(2,

558)

(2,

283)

(4,

149)

(3,

760)

(3,5

48)

(6,

033)

Net

Ava

ilabl

e fr

om O

pera

�ons

$ 3

,132

$

1,9

28

$ 2

,372

$

3,6

23

$ 4

,203

$

3,7

69

$ 8

72

$ 2

,478

$

3,8

78

$ 2

,987

Debt

Ser

vice

Cov

erag

e:6

Debt

Ser

vice

Cov

erag

e on

Bon

ds 4

.58

X 2

.73

X 2

.62

X 2

.79

X 3

.04

X 2

.82

X 2

.32

X 2

.71

X 3

.04

X 3

.46

XRe

quire

d Co

vera

ge T

est

1.2

5 X

1.2

5 X

1.2

5 X

1.2

5 X

1.2

5 X

1.2

5 X

1.2

5 X

1.2

5 X

1.2

5 X

1.2

5 X

238

Not

es:

Gro

ss R

even

ues

are

de�n

ed p

ursu

ant

to R

esol

u�on

714

3 ad

opte

d Ju

ne 1

4, 2

004,

as

all

inco

me

and

earn

ings

der

ived

by

the

City

fro

m t

he o

wne

rshi

p,op

era�

on, l

easin

g, o

r use

of t

he sy

stem

, and

inve

stm

ent i

ncom

e, e

xclu

ding

cap

ital e

xpan

sion

and

syst

em im

prov

emen

t gra

nts.

Ope

ratio

n an

d M

aint

enan

ce E

xpen

ses

are

de�n

ed a

s th

e co

st o

f op

era�

on a

nd m

aint

enan

ce a

s cu

rren

t ex

pens

es, p

aid

or a

ccru

ed, l

ess

depr

ecia

�on

and

amor

�za�

on e

xpen

se.

Net

Rev

enue

s and

Ple

dged

Rev

enue

s are

de�

ned

as g

ross

reve

nues

less

ope

ra�o

n an

d m

aint

enan

ce e

xpen

ses p

lus c

apac

ity c

harg

es.

1Se

ries

2004

- Th

e an

nual

ized

inte

rest

pay

men

ts fo

r �sc

al y

ears

200

4, 2

005

and

2006

wer

e pa

id 1

00%

from

the

Capi

taliz

ed In

tere

st F

und

of $

2,38

0,26

5. T

his

serie

s was

refu

nded

by

the

Serie

s 201

3 Bo

nds a

s disc

usse

d in

not

e 5

belo

w.

2Se

ries

2007

A &

200

7B -

In R

esol

u�on

796

5, a

dopt

ed J

uly

23, 2

007,

the

City

am

ende

d Re

solu

�on

7143

for

the

purp

ose

of a

utho

rizin

g th

e iss

uanc

e of

the

U�l

ity S

yste

m R

even

ue B

onds

, Se

ries

2007

A an

d Ta

xabl

e U

�lity

Sys

tem

Rev

enue

Bon

ds,

Serie

s 20

07B

("Se

ries

2007

Bon

ds")

on

a pa

rity

with

the

City

's ou

tsta

ndin

g U

�lity

Sys

tem

Rev

enue

Bon

ds, S

erie

s 200

4. F

irst t

wo

year

s pay

men

ts fo

r the

se b

onds

wer

e in

tere

st o

nly

and

wer

e pa

id 1

00%

from

the

Capi

taliz

edIn

tere

st fu

nd o

f $1,

341,

602.

3Se

ries

2010

- In

Res

olu�

on 8

673,

ado

pted

Jun

e 28

, 201

0, t

he C

ity a

utho

rized

the

issu

ance

of

an $

8,00

0,00

0 no

te t

hat

fully

pai

d o�

a p

rior

$8,0

00,0

00Pl

anta

�on

Syst

em s

elle

r's n

ote.

Thi

s pr

ior

note

was

par

t of

the

purc

hase

pric

e fo

r th

is $1

5,00

0,00

0 u�

lity

and

the

2010

not

e is

on p

arity

with

the

200

4 an

d20

07A&

B bo

nds.

4Se

ries

2013

- Re

solu

�ons

918

3 an

d 91

84, a

dopt

ed A

pril

22, 2

013,

the

City

aut

horiz

ed t

he is

suan

ce o

f the

U�l

ity S

yste

m R

efun

ding

Rev

enue

Bon

ds, S

erie

s20

13 to

refu

nd th

e Se

ries 2

004

U�l

ity B

onds

with

the

sam

e pa

rity

and

pled

ged

reve

nues

as t

he S

erie

s 200

4.5

Excl

udes

reve

nues

from

cap

acity

cha

rges

per

Bon

d Re

solu

�on.

6In

clud

es re

venu

es fr

om c

apac

ity c

harg

es p

er B

ond

Reso

lu�o

n.

239

Inter-Utility Comparison of Typical Monthly Utility Bills

The tables on this and following pages provide a comparison of the rates of the City Electric System and U� litySystem with those of neighboring u� li� es.

Electric Residential ServicesFuel Adj

Comparable Utility ($$/1000kWh) Monthly Usage1,000 kWh 1,200 kWh 2,500 kWh

City of Leesburg - Exis� ng Rates - $ 105.09 $ 128.04 $ 277.25 Florida Municipalities or Cooperatives:

City of Jacksonville Beach $ 35.84 117.91 140.59 288.03 City of Lakeland 34.25 97.27 115.95 242.96 City of Mount Dora 59.28 108.52 128.43 257.87 City of Ocala 17.00 110.64 130.90 262.61 City of Winter Park 26.74 102.54 125.52 274.89 Gainesville Regional U� li� es 70.00 130.40 157.20 331.40

Florida Investor-Owned Utilities:Florida Power and Light 21.73 89.27 109.81 243.26 Duke Energy 26.79 108.48 133.15 293.49 Tampa Electric Company 33.61 103.56 125.27 266.41

Surveyed Florida U� li� es Average 32.52 107.37 129.49 273.82 Minimum - 89.27 109.81 242.96 Maximum 70.00 130.40 157.20 331.40

Electric General Service (Demand)Fuel Adj

Comparable Utility ($$/1000kWh) Monthly Usage30 KW 40 KW

750 kWh 1,500 kWh 6,000 kWh 10,000 kWhCity of Leesburg - Exis� ng Rates - $ 113.90 $ 164.70 $ 732.05 $ 1,062.75 Florida Municipalities or Cooperatives:

City of Jacksonville Beach $ 35.84 91.06 176.12 686.46 1,140.10 City of Lakeland 34.25 77.00 141.99 497.60 773.03 City of Mount Dora 59.28 83.63 158.30 556.40 864.90 City of Ocala 17.00 88.07 163.92 662.01 1,020.55 City of Winter Park 26.74 85.92 159.23 565.50 887.84 Gainesville Regional U� li� es 70.00 133.77 238.00 1,015.00 1,540.00

Florida Investor-Owned Utilities:Florida Power and Light 21.73 74.39 141.02 617.42 911.34 Duke Energy 26.79 88.23 164.86 658.81 987.49 Tampa Electric Company 33.61 88.99 159.97 585.84 1,016.00

Surveyed Florida U� li� es Average 32.52 166.81 657.71 1,020.40 Minimum - 141.02 497.60 773.03 Maximum 70.00 238.00 1,015.00 1,540.00

240

Rate Comparison

The tables on this and following pages provide a comparison of the rates of the City Electric System and U� litySystem with those of neighboring u� li� es.

Electric General Service (Non-Demand)Fuel Adj

Comparable Utility ($$/1000kWh) Monthly Usage75 KW 150 KW 300 KW 500 KW

15,000 kWh 30,000 kWh 60,000 kWh 100,000 kWhCity of Leesburg - Exis� ng Rates - $ 1,790.91 $ 3,555.67 $ 7,085.20 $ 12,416.73 Florida Municipalities or Cooperatives:

City of Jacksonville Beach $ 35.84 2,140.40 4,264.55 8,512.85 14,177.25 City of Lakeland 34.25 1,475.49 2,915.99 5,796.97 10,234.29 City of Mount Dora 59.28 1,360.78 2,701.42 5,382.70 8,957.74 City of Ocala 17.00 1,618.35 3,279.75 6,535.05 11,250.45 City of Winter Park 26.74 1,394.04 2,774.94 5,536.74 9,106.89 Gainesville Regional U� li� es 70.00 2,387.50 4,675.00 9,106.90 15,111.50

Florida Investor-Owned Utilities:Florida Power and Light 21.73 1,513.19 3,006.14 5,992.04 10,260.83 Duke Energy 26.79 1,629.64 3,247.69 6,483.79 10,628.70

Tampa Electric Company 33.61 1,588.35 3,146.70 6,263.40 10,419.00

Surveyed Florida U� li� es Average 32.52 3,356.79 6,669.56 11,256.34 Minimum - 2,701.42 5,382.70 8,957.74 Maximum 70.00 4,675.00 9,106.90 15,111.50

Note: Amounts shown are based on the rates for single phase service and re� ect, when applicable, inside Cityservice. Amounts shown include the energy conserva� on, capacity and environmental cost recovery chargeswhere appropriate, as � led with the Florida Public Service Commission (PSC).

241

Utility Residential ServicesComparable Utility Monthly Usage

Natural Gas Water Sewer 14 Therms 7,500 Gal

City of Leesburg - Exis� ng Rates $ 15.48 $ 18.26 $ 36.37 Surveyed Florida Utilities:

City of Clearwater 32.58 City of Clermont 13.73 30.77 City of Deland 21.30 58.79 City of Eus� s 27.53 48.93 City of Jacksonville Beach 44.49 68.89 City of Mount Dora 19.44 55.04 City of Ocala 16.90 45.45 City of Sanford 28.30 53.28 City of Sunrise 25.07 City of Tallahassee 29.41 City of Tavares 38.47 45.67 City of Wildwood 18.36 40.17 Gainesville Regional U� li� es 16.78 35.45 50.75

Regulated Natural Gas Companies:Peoples Gas System 17.23 Florida Public U� li� es 24.58 St. Joe Natural Gas Co. 20.00

Surveyed Florida U� li� es Average 22.64 25.66 48.55

Utility Commercial ServicesComparable Utility Monthly Usage

Natural Gas Water Sewer 579 Therms 50,000 gallons

City of Leesburg - Exis� ng Rates $ 318.51 $ 107.41 $ 161.58 Surveyed Florida Utilities:

City of Clearwater 865.34 City of Clermont 155.48 117.47 City of Deland 151.21 424.13 City of Eus� s 160.96 224.83 City of Jacksonville Beach 292.89 542.27 City of Mount Dora 81.96 252.19 City of Ocala 183.15 529.23 City of Sanford 197.88 369.95 City of Sunrise 365.41 City of Tallahassee 208.76 City of Tavares 328.86 331.22 City of Wildwood 117.83 227.13 Gainesville Regional U� li� es 299.76 212.50 324.10

Regulated Natural Gas Companies:Peoples Gas System 234.68 Florida Public U� li� es 651.63 St. Joe Natural Gas Co. 359.50

Surveyed Florida U� li� es Average 412.95 180.92 318.55

242


243

CITY OF LEESBURGTEN LARGEST CUSTOMERS (REVENUE BASED)

FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2016

Electric Revenues Volume % of Total(MWh)

CENTRAL FLORIDA HEALTH ALLIANCE (� a LRMC) $ 1,706,587 20,563 2.91%CUTRALE CITRUS JUICES USA INC 1,532,907 12,989 2.61%LAKE COUNTY SCHOOL DISTRICT 1,012,750 7,851 1.73%CCRC-LAKE PORT SQUARE, LLC 691,877 6,906 1.18%CITY OF LEESBURG 493,076 5,262 0.84%LAKE-SUMTER STATE COLLEGE 443,101 4,243 0.75%WALMART STORE INC 434,443 5,153 0.74%PUBLIX SUPERMARKETS,INC #0815 401,237 4,655 0.68%CENTURYLINK 394,824 4,391 0.67%COCA-COLA NORTH AMERICA 370,878 4,475 0.63%

Total 10 Largest Electric Customers $ 7,481,680 76,488 12.74%

Total Electric System Revenues $ 58,706,161 473,928 100.00%

Gas Revenues Volume % of Total(Therms)

COVANTA ENERGY CORP II $ 1,223,367 1,348,548 20.28%FEDERAL CORRECTIONAL COMPLEX 680,321 736,111 11.28%LRMC 615,429 665,220 10.20%DAB CONSTRUCTORS1 219,179 413,772 3.63%CUTRALE CITRUS JUICES USA INC2 119,370 3,964,364 1.98%UNIVERSAL AGGREGATE SOLUTIONS 102,199 110,053 1.69%CCRC-LAKE PORT SQUARE, LLC 77,426 83,071 1.28%LIFESTREAM BEHAVIORAL CENTER 70,919 76,428 1.18%CNG ENERGY LLC 37,717 40,252 0.63%BEYERS, ROGER A 34,389 37,022 0.57%

Total 10 Largest Gas Customers $ 3,180,316 7,474,841 52.71%

Total Gas System Revenues $ 6,033,051 5,019,474 100.00%

1 DAB Constructors is a large Gas consumer and has a long-standing contract that determines their pricing.

2 Cutrale Citrus Juices USA, Inc. purchases their own natural gas commodity through a gas purchasing agent andpays the City of Leesburg to transport that gas through Leesburg’s gas infrastructure.

244

CITY OF LEESBURGTEN LARGEST CUSTOMERS (REVENUE BASED)

FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2016

Water & Irrigation Revenues Volume % of Total(100 Cubic Feet)

CITY OF LEESBURG $ 80,276 56,885 1.05%CCRC-LAKE PORT SQUARE, LLC 60,282 19,526 0.79%LAKE COUNTY SCHOOL DISTRICT 55,156 37,322 0.72%CENTRAL FLORIDA HEALTH ALLIANCE (� a LRMC) 50,297 61,356 0.66%HIGHLAND LAKES PROP OWNERS 40,083 19,537 0.52%SLEEPY HOLLOW PHASE I & II 32,759 22,504 0.43%RANGE PROPERTIES LLC 27,496 21,706 0.36%LAKE SQUARE MALL REALTY MGMT 26,994 16,706 0.35%COACHWOOD COLONY MHP LLC 25,257 17,144 0.33%COMMUNITY HOUSING PARTNERS 22,011 15,511 0.29%

Total 10 Largest Water Customers $ 420,611 288,197 5.51%

Total Water System Revenues $ 7,636,407 1,649,094 100.00%

Wastewater Revenues Volume % of Total(100 Cubic Feet)

CCRC-LAKE PORT SQUARE, LLC $ 159,280 19,526 1.53%CENTRAL FLORIDA HEALTH ALLIANCE (� a LRMC) 56,166 61,356 0.54%BEACON COLLEGE 46,186 6,547 0.44%LAKE COUNTY SCHOOL DISTRICT 36,172 37,322 0.35%LIFESTREAM BEHAVIORAL CENTER 32,628 9,587 0.31%SLEEPY HOLLOW PHASE I & II 28,988 22,504 0.28%RANGE PROPERTIES LLC 27,767 21,706 0.27%SOUTH CAMPUS CARE CENTER 25,779 5,977 0.25%COMMUNITY HOUSING PARTNERS COR 25,511 15,511 0.25%COACHWOOD COLONY MHP LLC 22,746 17,144 0.22%

Total 10 Largest Wastewater Customers $ 461,223 217,180 4.44%

Total Wastewater System Revenues $ 10,383,014 1,576,188 100.00%

245

ORDINANCE NO. _-=1""3-=-2=-.:4 ___ _

AN ORDINANCE OF THE CITY OF LEESBURG, FLORIDA, AMENDING CERTAIN SUBSECTIONS OF §22 -196 OF THE CODE OF ORDINANCES, PERTAINING TO ELECTRIC RATES, INCREASING THE RATES IN SCHEDULES RS (RESIDENTIAL SERVICE), GS (GENERAL SERVICE NON _ DEMAND), GSD (GENERAL SERVICE DEMAND), AND TOU (TIME OF USE), PROVIDING FOR AUTOMATIC ANNUAL INCREASES OF 5% PER YEAR FOR 2014 AND 2015; SPECIFYING HOW THE ANNUAL 5% RATE INCREASES IN 2013, 2014 AND 2015 ARE TO BE APPLIED IN CONJUNCTION WITH THE AUTOMATIC INCREASES SPECIFIED IN §22 -166 OF THE CODE OF ORDINANCES; PRESERVING §22 - 196 EXCEPT AS AMENDED HEREBY; REPEALING ANY CONFLICTING ORDINANCES, PROVIDING A SAVINGS CLAUSE, AND PROVIDING AN EFFECTIVE DATE.

BE IT RESOLVED BY THE PEOPLE OF THE CITY OF LEESBURG, FLORIDA:

SECTION I.

§22 - 196 of the Code of Ordinances of the City of Leesburg, Florida, is hereby amended so that the subsections thereof listed below shall, following the effective date of this Ordinance, read as follows (NOTE: provisions in frtfikeffiH are being deleted from the existing ordinance, provisions in dQuble underlin<; are being added or amended by this Ordinance, and text nQt marked remains the same as in tbe existing ordinance):

(1) Rate schedule RS, residential service.

a. Availability: This rate is available tQ all applicable customers in the service area.

b. Applicability: The residential electric rate applies to an electrical service supplying electricity to a single-family residence. Service provided under this section shall not be shared with Qr resQld to others.

c. Character of servia: Service shall be single-phase, sixty (60) cycles and apprQximately 120/240 volts. If three (3) phases are desired, additional charges must be paid by the customer.

d. Limitations: Service is subject to all of the rules and regulations of this tariff and general rules and regulations of the utility. Standby or resale service is not permitted.

e. Rate per month.

Customer charge ..... $~ u.:u All kwh, per kwh ..... 0.08129 0.090108

The rates per month shall hecome effective with all bills rendered Qn or after the first day ef.the Ifteftl'h sttbseqaeftt te aael'1'ieft NOVember 1 2013. Such rates pet month are subject to the

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annual inflation adjustment component pursuant to section 22-166, .. beginning as of OctQber,l. 2!ll6.

f. Minimum charge: The tntnimum monthly bill shall be the customer charge plus other applicable charges, covered by ordinance, state statutes or federal law.

g. Terms ofpqyment: AU bills and charges for electric current are due and payable twenty (20) days following date of billing. If not paid within twenty (20) days a cartying charge equal to five (5) percent of the total bill is added. Service is discontinued if bill and carrying charge are not paid on or before thirty (30) days succeeding that in which electricity shall have been furnished by the city as stated in all bills rendered.

h. Billing adjustments: See "Bulk Power Cost Adjustment," "Energy Conservation Cost Recovery," and "Tax Adjustment Clause".

1. Deposits. Deposits for each account shall be required as set forth more particularly in section 2.2c.181 of this Code.

j, Reconnection charge: When service is cut off for nonpayment of bill, and when connection service is requested to be performed after normal business hours, the reconnection fee shall be as prescribed by the utility service fee schedule pursuant to section 22-6 of this Code. When service is cut off for meter-tampering, the charge to reconnect shall be as prescribed by the utility service fee schedule pursuant to section 22-6 of this Code plus damages and penalties allowed by state statutes.

(2) Rate schedule GS, general service, nondemand.

a. Availability. This rate is available to all applicable customers in the service area.

b. Applicability, This rate shall be applicable to all electrical services not covered by any of the other rate categories, residential electrical rate, general service demand rate and flat service rate.

c. Limitation. Service is subject to all of the rules and regulations of this tariff and general rules and regulations of the utility. Standby or resale is not permitted.

d. Rate per motlth.

Customer charge ..... $~ 11.77 All kwh ..... 0.08847 ~6Z

The rates per month shall become effective with all bills rendered on or after the first day of the ffi8fl('h sooseqHeflt to adel"tiefl November 1,.2lll3.. Such rates per month are subject to the annual inflation adjustment component pursuant to section 22-166, ,beginning as of October 2, f.Q16..

e. Minimum charge: The m.trurnum monthly bill shall be the customer charge plus other applicable charges, covered by ordinance, state statutes or federal law.

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f. Terms of payment: All bills and charges for electric current are due and payable twenty (20) days following date of billing. If not paid within twenty (20) days a carrying charge equal to five (5) percent of the total bill is added. Service is discontinued if bill and carrying charge are not paid on or before thirty (30) days succeeding that in which electricity shall have been furnished by the city as stated in all bills rendered.

g. Billing adjllstments: See "Bulk Power Cost Adjustment," "Energy Conservation Cost Recovery," and "Tax Adjustment Clause".

h. Deposits. Deposits for each account shall be required as set forth more particularly in section 22-181 of this Code.

1. &connection charge: When service is cut off for nonpayment of bill, and when connection service is requested to be performed after normal business hours, the reconnection fee shall be as prescribed by the utility service fee schedule pursuant to section 22-6 of this Code. When service is cut off for meter tampering, such reconnection charge shall be as prescribed by the utility service fee schedule pursuant to section 22-6 of this Code plus damages and penalties allowed by state statutes.

(3) Rate schedule GSD, general service, demand.

a. Availability. This rate is available to all applicable customers in the service area.

b. Application.

1. GSD-I: For electric service for commercial or industrial lighting, power and any other purpose to any customer with a measured demand in excess of 20 kW and less than 500 kW. Customers with a demand of 20 kW or less may enter into an agreement for service under this schedule based on a demand charge for a minimum of 21 kW.

2. GSD-2: For electric service for commercial or industrial lighting, power and any other purpose to any customer with a measured demand of 500 kW and less than 2,000 kW. Customers with a demand of less than 500 kW may enter into an agreement for service under this schedule based on a demand charge for a minimum of 500 kW.

3. GSD-3: For electric service for commercial or industrial lighting, power and any other purpose to any customer with a measured demand of 2,000 kW or more. Customers with a demand of less than 2,000 kW may enter into an agreement for service under this schedule based on a demand charge for a minimum of 2,000 kW.

c. Spedal provisions. Any customer whose demand is greater than twenty (20) kw, but less than fifty (50) kw, may at the option of the customer elect to be billed at the general service rate schedule, GS Code 444.2. If the customer modifies electrical usage to the extent the general service demand rate, GSD Code 444.3, produces lower billing, customer may at its option rescind the election to be billed at the general service rate schedule, GS Code 444.2, provided however, that the option of being billed at the general service rate schedule, GS Code 444.2 shall then no longer be available to such customer.

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d. Character of service. The service shall be three-phase, sixty (60) cycles and approximately one hundred twenty (120) volts or higher, at utility option.

e. umitations. Standby or resale is not permitted.

f. Rate per month.

1. CSD-I. Billing demand of 21 kW---499kW:

Customer charge ..... $~ 25.02 Demand charge ..... 14'B 11.38 Energy rate ..... 0.01165 0045991

2. CDS-2. Billing demand of 500-1,999 kW:

Customer charge ..... $404{j 44.34 Demand charge ..... ~ 12.99 Energy rate ..... 0.03806 0.042024

3. CSD-3. Billing demand of 2,000 leW or more:

Customer charge ..... $80d2 88.68 Demand charge ..... -1+.% Ui..1}

Energy rate ..... 0.03304 0.036481

The rates per month shall become effective with all bills rendered on or after the frrst day of 4e ffl6fttft 9tlBseqtleftt t6 a66l'ti6ft Noyember 2013. Such rates per month are subject to the annual inflation adjustment component pursuant to section 22-166 beginning as of October 2 2016.

g. Minimum charge. The minimum monthly charge shall be not less than the sum of customer charge and the demand charge for the currently effective billing demand, plus other applicable charges covered by ordinances, state statutes or federal law.

h. Billing demand. The maximum fifteen-minute integrated demand established during the current billing period.

i. Power factor. When the power factor is less than ninety (90) percent, the billing demand may be determined upon the basis of ninety (90) percent of the calculated kVa, demand.

j. Deposits. Deposits for each account shall be required as set forth more particularly in section 22-181 of this Code.

k. &connection charge. When service is cut off for nonpayment of bill, and when connection service is requested to be performed after normal business hours, the reconnection charge shall be as prescribed by the utility service fee schedule pursuant to section 22-6 of this Code. When service is cut off for meter tampering, there shall be a reconnection charge as prescribed by the utility service fee schedule pursuant to section 22-6 of this Code, plus damages and penalties allowed by state statute.

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I. Terms of payment. All bills and charges for electric current are due and payable twenty (20) days following date of billing. If not paid within twenty (20) days a carrying charge equal to five (5) percent of the total bill is added. Service is discontinued if bill and carrying charge are not paid on or before thirty (30) days succeeding that in which electricity shall have been furnished by the city as stated in all bills rendered.

m. Term of service. Service under this rate shall be for a minimum initial term of twelve (12) months from commencement of service and shall continue thereafter until receipt of notice by the city from the customer to disconnect, or upon disconnect by the city as provided by ordinance, or until the customer's demand is below twenty (20) lew for a consecutive twelvemonth period. Customers taking service under another rate schedule who elect to transfer to this rate must remain on this rate for a minimum of twelve (12) months. Where special equipment to serve the customer is required, the city may require a specified term of service contract.

n. Sp"ial provisions.

I. Any customer other than residential whose monthly demand is greater than twenty (20) lew but does not exceed forty-nine (49) kw for more than two (2) months out of the preceding twelve (12) consecutive months ending with the current billing period may, at the option of the customer, elect to be billed at the General Service Rate Schedule, GS Code 4442. Provided, that once a customer has exceeded forty-nine (49) for more than two (2) months out of the preceding twelve (12) consecutive months, no rate change option is available. If the customer modifies electrical usage to the extent the General Service Demand Rate (GSD Code 4443) produces lower billing, customer may, at its option, rescind the election to be billed at the General Service Rate Schedule, GS Code 4442; provided, that the option of being billed at the General Service Rate Schedule, GS Code 4442, shall then no longer be available to such customer.

2. The city may, under the provisions of this rate, require a contract with the customer. Whenever the customer increases his electrical load, which increase requires the city to increase facilities installed for the specific use of the customer, a new term of service may be required.

3. Any church or religious institution may, at their option, regardless of their demand, elect to be billed at the General Service Non Demand Rate and may not rescind such election thereafter for a period of twelve (12) months. This election may be for the sanctuary and related Sunday School or religious educational buildings.

o. Billing adjustments. See "Bulk Power Cost Adjustment," "Energy Conservation Cost Recovery," and "Tax Adjustment Clausell,

(13) Rate Schedules TOU -1 and TOU - 2, Time of Use Rates.

a. Availability. Available throughout the entire territory served by the City subject to equipment availability. This is an optional service available at the customer's request. Customer may choose either rate schedule TOU-RI or TOU-R2.

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b. Applicability. The residential electric rate applies to an electrical service supplying electricity to a single-family residence. Service provided under this section shall not be shared with or resold to others.

c. Character of Service. Service shall be single-phase, sixty (60) cycles and approximately 120/240 volts. If three (3) phases are desired, additional charges must be paid by the customer.

d. Limitations. Service is subject to all of the rules and regulations of this ordinance and the general rules and regulations of the City's electric utility. Standby or resale service is not permitted. No customer who elects to obtain service under dus TOU rate schedule shall be eligible for any other load management credits offered by the City to residential customers.

e. Rates per month. The following rate schedules shall apply to this TOU rate:

Customer Charge

Rate per kWh:

Winter - Onpeak

Winter - Offpeak

Summer - Onpeak

Summer - Offpeak

TOU-R1 $0.404131 $0.424341

0.060165 0.063173

0.352527 0.370153

0.062573 0065702

$:J+.+G ll11

TOU-R2 $0.265005 $0.278255

0.070985 0.074534

0.230715 0.242251

0.072777 0.076416

Winter - On-peak is defined as the hours from 7 a.m. to 9 a.m. on Monday through Friday during the months of December, January and February, excluding any federal holiday occurring on those days. Winter - Off-peak is defined as all other hours during the months of December, January and February.

Summer - On-peak is defined as the hours from 3 p.m. to 5 p.m. on Monday through Friday during the months of March through October, excluding any federal holiday occurring on those days. Summer - Off-peak is defined as all other hours during the mondls of March dlfough October.

The rate per month is subject to the annual inflation adjustment component pursuant to §22 - 166. Prompdy after each annual inflation adjustment, the City will for informational purposes notify the Florida Public Services Commission in writing of its then current rates including any annual inflation adjustment.

f Minimum Charge. The minimum monthly bill shall be the customer charge plus other applicable charges, covered by ordinance, state statutes or federal law.

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g. Maximum Charge. After the customer's first three billing months under this rate schedule, at the customer's request, the City will calculate the total billings the customer would have been charged under the basic residential rate, Rate RS, and refund to the customer any excess of the actual billings under this rate over such calculated amount.

h. Term of Service. Service under this TOU rate schedule shall be for a minimum initial term of twelve (12) months from commencement of service and shall continue thereafter until receipt of notice by the City from the customer to disconnect, or upon disconnect by the City as provided by City ordinance. Customers taking service under another rate schedule who elect to transfer to this rate must remain on this rate for a minimum of twelve (12) months. A customer taking service under this rate schedule who elects to transfer to another rate will be prohibited from taking service on this rate schedule again for a minimum of twelve (12) months.

SECTION II.

The rates set by this Ordinance shall take effect November 1, 2013, and remain in effect until October 31, 2014. On November 1, 2014, those rates each shall increase by 5%, and the increased rate shall remain in effect until October 31, 2015. Beginning November 1, 2015, the rates in effect from November 1, 2014 through October 31, 2015, each shall increase by 5%, and those increased rates shall remain in effect until September 30, 2016. On October 1, 2016, and each year thereafter, the automatic increases specified by §22 - 166 of the Code of Ordinances shall be applied to each rate schedule listed above. Between the effective date of this Ordinance and October 1, 2016, the annual increases specified in this Ordinance shall take the place of the automatic increases provided by §22 - 166.

SECTION III.

Except as specifically amended by this Ordinance, the provisions of §22 - 196 of the Code of Ordinances shall continue in full force and effect in the form existing prior to this Ordinance, and the rate increases specified in §22 - 166 shall continue to apply annually to any rates not specifically increased by this Ordinance.

SECTION IV.

All ordinances or part of ordinances which are in conflict with this Ordinance are hereby repealed, to the extent necessary to alleviate the conflict, but shall continue in effect insofar as they are not in conflict herewith, unless repeal of the conflicting portion destroys the overall intent and effect of any of the conflicting ordinance, in which case those ordinances so affected shall be hereby repealed in their entirety.

SECTIONV.

If any portion of this Ordinance is declared invalid or unenforceable, and to the extent that it is possible to do so without destroying the overall intent and effect of this Ordinance, the portion deemed invalid or unenforceable shall be severed here from and the remainder of the ordinance shall continue in full force and effect as if it were enacted without including the portion found to be invalid or unenforceable.

252

SECTION VI.

This Ordinance shall become effective upon its passage and adoption according to law, provided that the rate increases hereby imposed shall not take effect until November 1, 2013.

PASSED AND ADOPTED at the regular meeting of the City Commission of the City of Leesburg, Florida, held on the 22 day of July ,2013.

THE CITY OF LEESBURG, FLORIDA

BY: --,&~6l--~---,"' L...\----MAYOR~

1i!it 1 Attest: ~1 ~4lLh7

CITY CLERK

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ORDINANCE NO. 16-32 ----AN ORDINANCE OF THE CITY OF LEESBURG, FLORIDA, AMENDING §22.166 OF THE CODE OF ORDINANCES PERTAINING TO ANNUAL UTILITY RATE INCREASES BASED ON AN INDEX; CHANGING THE INCREASES BASED ON THE INDEX SO THEY ARE NOT IMPOSED AUTOMATICALLY ON AN ANNUAL BASIS BUT ARE INSTEAD IMPOSED AT THE inSCRE'I'ION OF TfJE CITY MANAGER; REPEALING CONFLICTING ORDINANCES; PROVIDING A SAVINGS CLAUSE; AND PROVIDING AN EFFECTIVE DATE.

BE IT ENACTED BY THE PEOPLE OF THE CITY OF LEESBURG:

SECTION I.

§22-166 'of the Code of Ordinances of the City of Leesburg, Florida, is hereby amended to read as set forth belo

Sec. 22-166. - Annual rate adjustinents based index . All utilitY rates and charges established in or through procedures set forth in divisions 3, 4, 5, 6, 7 and 90f this article V,except for .the effects of automatic pass-through rate components such as the bulk ,power cost adjustment and purchased gas adjustment mechani'sms, may at the discretion of the City Manager be, adjusted annually, on October'l according to the percentage increase or decrease in the gross domestic product implicit price deflator index {the "Index"). This increase or decrease ,shall be measured by comparing the final revision of the Index for the second quarter o{ the current calendar year to the Index, at the same time during the' previous year. Rates so adjusted shall !io into effect as of the next billing c;ycle fo)lowing October 1 of the year in which the increase is, imposed. This adjustment shall he implemented by written action of the City Manager issued no later than September 1 of any year in which an adjustment is to be made under this Section. The City Manager may apply such an adjustment to anyone or more of the utility rates and is not required to increase all rates simultaneously. For any year a tate is not adjusted according to the Index, the amount by which the rate could have been increased may be 'applied cunmlatiyely with future increases, at a 1!tter date if the City Mlnager so detei:miD.es.

SECTION II.

All ordinances or part of ordinances which are in conflict with this Ordinance are hereby repealed, to the extent necessary to alleviate the c,on£lict, but shall continue in effect insofar as they are not in conflict herewith, unless repeal of the conflicting portion destroys the overall intent and effect ofany of the conflicting ordinance, in which case those ordinances so affected shall be hereby repealed in their enti1:ety.

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SECTION III. . If any portion of this Ordinance is declared invalid or unenforceable, and to the extent that it is possible to do so without d~stroJ'ing the overall intent and effect of this Ordinance; the portion deemed invalid or unenforceable shall be severed berefrom and the remainder of the ordinance shall continue in full force and effect as if it were enacted' without including the portion found to be invalid or unenforceable. .

SECTION IV.

TIlls Ordinance sball become effective upon its passage and adoption according to law. , . PASSED AND ADOPTED at the regulat meeting of the City Commission of the City of

Leesburg, Florida, beld on the 12th day of September. . ,2016.

Attest: L...-- ~ J. DI PURVIS, City· Clerk

THE CITY OF LEESBURG; FLORIDA

BY: --='s.~~~~~"!':'l~~-]AYHiJIltLEY, M

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ORDINANCE NO. 09-~

AN ORDINANCE OF THE CITY OF LEESBURG, FLORIDA, AMENDING SECTION 22-211 OF THE CODE OF ORDINANCES PERTAINING TO WATER SERVICE RATES, AS AMENDED PREVIOUSLY BY ORDINANCE 09 - 64; ESTABLISHING A NEW RATE SCHEDULE FOR WATER; PROVIDING FOR RATES EFFECTIVE AS OF NOVEMBER 1, 2009; PROVIDING FOR RATES EFFECTIVE AS OF NOVEMBER 1, 2010; PROVIDING FOR RATES INSIDE AND OUTSIDE THE CITY LIMITS; PROVIDING FOR ADOPTION OF RECONNECTION CHARGES BY RESOLUTION; PROVIDING FOR CONTINUOUS SERVICE TO FIRE PROTECTION SYSTEMS FOR SAFETY REASONS IN THE EVENT OF A CUTOFF OF SERVICE; PROVIDING FOR CONFLICTS; PROVIDING A SAVINGS CLAUSE; AND PROVIDING AN EFFECTIVE DATE.

BE IT ENACTED BY THE PEOPLE OF THE CITY OF LEESBURG, FLORIDA, that:

SECTION 1.

Section 22-211 , of the Code of Ordinances of the City of Leesburg, Florida, is hereby amended in its entirety to read as:

(a) Waler conservation service rate:

(1) Inside The City Water Rates (CCF):

Line No. Description

Proposed Rates Ef~ctivel1 /01 /2009

Proposed Rates Effective 11101 / 2010

Customer Charge Residential, Master·Meter, Conunercial, and Sprinklers

1.

2

3. 4.

All Meter Sizes $7.70 $7.85

Customer Charge Irrigation


Consumption Charge (per I CCF = 100 Cubic Feet = 748 Gallons)

Consumption Charge Potable Water Residential Block Rates (per CCF)

BASI (0 - 6) BAS2 (7 - 12)

$0.64 $0.77

$0.65 $0.82

256

5. 6. 7.

8

9. 10. 11.

12. 13.

BAS3 (13 - 21) $1.07 $1.14 BAS4 (22 - 45) $1.45 $1.55 BASS (Over 45) $2.66 $2.84

Consumption Charge Potable Water Commercial Block Rates (per CCF)

All CCF (No Cap) $1.03 $1.10

Consumption Charge Irrigation Residential Block Rates (per CCF)

BASI (0 - 9) $1.07 $1 .14 BAS2 (10 - 33) $1.45 $1.55 BAS3 (Over 33) $2.66 $2.84

Consumption Charge Irrigation Commercial and Common Area Block Rates (per CCF)

BASI (0 - 33) BAS2 (Over 33)

$1.07 $1.45

$1 .14 $1.55

(2) Inside The City Water RoteJ (TGAL):

Line No. Descriptio n

Proposed Rates E ffective 11 / 01/2009

Proposed Rates Effective 11101 / 2010

Customer Charge Residential, Master-Meter, Commercial, and Sprinklers

14. All Meter Sizes $7.70 $7. 85


15. All Meter Sizes $4.03 $4.31

Consumption Charge (per 1 TGAL = 1000 G allons)

Consumption Charge Potable Water Residential Block Rates (per TGAL)

16. BASI (0 - 4) $0.86 $0.88 17. BAS2 (5 - 8) $1.02 $1.09 18. BAS3 (9 -15) $1.43 $1.53 19. BAS4 (16 - 33) $1.94 $2.07 20. BASS (Over 33) $3.56 $3.80

Consumption Charge Potable Water Commercial Block Rates (per TGAL)

257

21.

22. 23. 24.

25. 26.

All CCF (No Cap) $1 .38

Consumption Charge Irrigation Residential Block Rates (per TGAL)

BAS1 (0 - 7) BAS2 (8 - 25) BAS3 (Over 25)

$1.43 $1.94 $3.56

$1.47

$1.53 $2.07 $3.80

Consumption Charge Irrigation Commercial and Common Area Block Rates (per TGAL)

BAS1 (0 - 25) BAS2 (Over 25)

$1.43 $1.94

$1.53 $2.07

(3) Outside The City lf7ate7' Rates (CCF):


Proposed Rates Effective 11 /01 / 2009

Proposed Rates E ffective 11 / 01 / 2010

27.

28.

29. 30. 31. 32. 33.

34.


A ll Meter Sizes $9.63 $9.81



Consumption Charge (per 1 CCF = 100 Cubic Feet = 748 Gallons)

Consumption Charge Potable Water Residential Block Rates (per CCF)

BAS1 (0 - 6) BAS2 (7 - 12) BAS3 (13 - 21 ) BAS4 (22 - 45) BASS (Over 45)

$0.80 $0.96 $1.34 $1.81 $3.33

Consumption Charge Potable Water Commercial Block Rates (per CCF)

All CCF (No Cap) $1.29

Consumption Charge Irrigation Residential Block Rates (per CCF)

$0.81 $1.03 $1.43 $1.94 $3.55

$1.38

258

35. 36. 37.

38. 39.

BASI (0 - 9) BAS2 (10 - 33) BAS3 (Over 33)

$1.34 $1.81 $3.33

$1.43 $1.94 $3.55

Consumption Charge Irrigation Commercial and Common Area Block Rates per CCr)

BASI (0 - 33) BAS2 (Over 33)

$1.34 $1.81

$1.43 $1.94

(4) Outside The City Water Rates (TGAL):


Proposed Rates Effective 11 / 01 / 2009

Proposed Rates E ffective 11101 /20 10

40.

41 .

42. 43. 44. 45. 46.

47.

48. 49. 50.

51.




All Meter Sizes $5.04 $539

Consumption Charge (per 1 TGAL = 1000 Gallons)

Consumption Charge Potable Water Residential Block Rates per TGAL)

BASI (0 - 4) $1.08 $1.10 BAS2 (5 - 8) $1.28 $1.36 BAS3 (9 - 15) $1 .79 $1.91 BAS4 (16 - 33) $2.43 $2.59 BASS (Over 33) $4.45 $4.75

Consumption Charge Potable Water Commercial Block Rates p er TGAL)

All CCF (No Cap) $1.73 $1.84

Consumption Charge Irrigation Residential Block Rates per TGAL)

BASI (0 - 7) $1.79 $1.91 BAS2 (8 - 25) $2.43 $2.59 BAS3 (Over 25) $4.45 $4.75

Consumption Charge Irrigation Commercial and Common Area Block Rates (per TGAL)

BASI (0 - 25) $1.79 $1.91

259

52. BAS2 (Over 25) $2.43 $2.59

In all categories, for installations which have flre protection systems utilizing city water, whether or not metered, there shall be imposed a monthly availabili ty charge, regardless of actual usage, in the amount of $2.00 per inch diameter of service pipe serving the fue protection system.

(b) D eposits for each account shall be required as set forth more particularly in section 22-181 of this Code.

(c) A reconnection charge, when service is cut off for nonpayment of bill, and. when connection service is requested to be performed after nonnal business hours , will be imposed as provided in the utility service fee schedule adopted or amended from time to time by Resolution of the Cit)' Commission.

(d) Service will not be turned on after it is cut off for nonpayment until the account is paid current and cut-on charge is paid. In those installations which have fue protection systems which are operated by city water, service shall remain turned on to the flre protection system as a matter of public safe ty, however there shall be charged, in addition to the normal reconnection charge, a reconnection surcharge of two dollars ($2.00) per month per inch diameter of service pipe serving the insrallation.

(e) Where water service charges are measured, in whole or in part, by a master meter, the availabili ty charge on the master meter shall be the number of units served by the master meter times the rate per month availability charge. All consumption on the master meter shall be billed at the charge per one hundred (100) cubic feet, as applicable, plus all o ther charges. The master meter shall be classified to the rate schedule which yields the highest revenue consistent with the applicability clauses of the rate classes . Each and every user served by the master meter may be billed, at the discretion of the city, for the rUled charge assessed for each user within the particular user's service classification, and the person or entity in whose name the master meter is registered on the city's records shall in such event be billed for the variable charge assessed for the service being provided. As used in this subsection, the following terms shall have the meanings indicated:

(1) Master meter: Shall refer to a meter measuring the service provided to two (2) or more occupancy units being served by a single merer.

(2) Occupancy 1{l1it: Shall refer to that portion of any commercial establishment, single- or multi-unit residential building, or trailer, mobile home, manufacture housing, or recreational vehicle park, or marina which is set apart from the rest of such facili ty by clearly determinable boundaries, as described in the rental, lease or ownership agreement for such unit, or in the absence o f such an agreement, where that portion of the facility is clearly set apart from the rest of the facility in a manner which evidences an intent to render the unit suitable for occupancy as a residential, commercial or o ther space as a discrete unit, separate and apart from the use or occupancy of other units within the same facility.

(3) User: Shall refer to the occupant(s) of any individual occupancy unit served by a master meter.

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(4) Fixed charge: Shall refer to the minimum charge imposed by the city during a billing period, in the particular customer's service classification, for the availability of the service, whether or not service is actually used by the customer in a given billing period.

(5) Variable ch01;ge: Shall refer to that portion of the bill for the utili ty service which is assessed in addition to the fL'{ed charge and which is based on actual usage in a given billing period.

SECTION 2.

All ordinances or parts of ordinances which are in conflict with this ordinance are hereby repealed, to the extent necessary to alleviate the conflict, but shall continue in effect insofar as they are not in conflict herewith, unless repeal of the conflicting portion destroys the overall intent and effect of any of the conflicting ordinances, in which case those ordinances so effected shall be hereby repealed in their entirety. Except as specifically modified by this Ordinance, the provisions o f Ordinance 09 - 64 are hereby ratified and confirmed as originally enacted and shall be and remain in full force nUllc pro tunc to its original adoption date of October 26, 2009.

SECTION 3.

If any portion of this ordinance is declared invalid or unenforceable, and to the extent it is possible to do so without destroying the overall intent and effect of this ordinance, the portion deemed invalid or unenforceable shall be severed berefrom and the remainder o f this ordinance shall continue in full force and effect as if it were enacted without including the portion found to be invalid or unenforceable.

SECTION 4. This ordinance shall become effective upon passage.

PASSED AND ADOPTED at the regular meeting of the City COnurUssion of the City of Leesburg, Florida, held on the 21 day of December , 2009.

THE CITY OF LEESBP

ATTEST:

City 6efk

261

ORDINANCE NO. 11-58

AN ORDINANCE OF THE CITY OF LEESBURG, FLORIDA, AMENDING §22 - 211 OF THE CODE OF ORDINANCES PERTAINING TO WATER RATES, PROVIDING NEW RATE TABLES FOR CUSTOMERS CONNECTED TO THE ROYAL HIGHLANDS WATER TREATMENT PLANT; AMENDING SUBSECTIONS (a)(3) AND (a)(4) OF §22 - 211 TO EXCLUDE FROM THE RATE TABLES IN THOSE SUBECTIONS ANY CUSTOMERS CONNE CTED TO THE ROYAL HIGHLANDS WATER TREATMENT PLANT; CREATING SUBSECTIONS (a)(S) AND (a)(6) OF §22 - 211 TO SPECIFY THE RAT E S FOR CUSTOME RS CONNECTE D TO THE ROYAL HIGHLANDS WATER TREATMENT PLANT; LIMITING CONNECTIONS TO THE ROYAL HIGHLANDS WATER TREATMENT PLANT TO CONFORM TO THE WITHDRAWAL LIMITATIONS FOR THAT FACILITY IN THE CITY'S CONSUMPTIVE USE PERMIT; SETTING FOR LEGISLATIVE FINDINGS; REPEALING CONFLICTING ORDINANCES; AND PROVIDING AN E FFE CTIVE DATE .

N O W TH EREFORE, BE IT E N ACTED BY THE PEOPLE OF THE CITY O F LE ESBURG, FLO RI DA:

SE CTION I.

'Il,e City Glmmission of the City of Leesburg, FIOlida, makes the following legislative findings with respect to the rates charged for water supplied bv the City's Royal Highlands Water Treatment Plant:

• The City of Leesburg provides potab le water to its customers under the provisions of C'"onsumptive Use Pennit (CUP) 1/ 94, iss ued by SL Johns Rive r Water Nlanagemem D istlict (S]RWMD) .

• CUP 1/ 94 was issued by SjR\XI},1D on Nove mber 16, 2010. • SJRWlvID has prev iously established Jviinimllm Flows and Levels (MFL's) for Lake Apshawa

(North and South). • TIle MFL's for Lake Apshawa have been vioLued in the historic peliod since establishment

of the 1\1FL'5 for that body of water. • CUP pemutting mles prohibit is suance of a pemut wruch will impact an MFL which has

been violated. • Hydrogeologic modeling of ground water withdrawals from the Royal Highlands Wellfield

demonstrated that the MFL's for Lake Apshawa would be impacted by then-current withdrawals, necessitating a reduction of ground water withdrawals from the Royal Highlands Wellfield.

• CUP 1/ 94 contains Condition 1/ 24, which allocates maximum annual groundwater withdrawals from the Royal Highlands Wellfield as follows:

o 354.05 nlillion gallons (0.97 million gallons per day (mgd) average) in 2010, o 321.20 nlilhon gallons (0 .88 mgd ave rage) in 2011 , o 292.00 million gallons (0.80 mgd average) in 20 12, o 277.40 nlillion gallons (0.76 mgd average) in 2013 , o 266.45 million gallons (0.73 mgd average) in 201 4,

262

o 259.15 million gallons (0.71 mgd average) in 2015 and, o 251.85 million gallons (0.69 mgd average) in 2016 through 2030.

• 2010 groundwater ",;thdrawals from the Royal Highlands Wellfield were 0.94 mgd, which is acceptable under condition # 24 but exceeds the allocation for 2011.

• Implementation of an enhanced conservation rate structure is necessary to discourage high water consumption that would cause overwithdrawal from the Royal Highlands Wellfield and therefore violate C--Ondition 24 of CUP # 94 in 2011 and succeeding years.

• The enhanced conservation rate structure should be applied to all residential customers attached to the Royal Highlands Water Treatment Plant.

SECTION II.

§22 - 211(a) of the Code of Ordinances of the City of Leesburg, Florida, is hereby amended to read as follows:

(a) Water cvnserultzon sercUc rate:

(1) Inside rlx cityZilll1.'Y mles (COo):

TABLE INSET:


Rates Effective R.nes Effective 11/01/2009 11/0 1/2010

Customer Charge Residential, Master-Meter, CDmmercial, and Sprinklers

Meter Size

1. ALL METER SIZES

$7.70 $7.85

Customer Charge Inigation

Mete r Size

2. ALl. MD'F.R SIZES

$4.03 4.31

Consumption Charge (Per 1 CO' ~ 100 Cubic het ~ 748 Gallons)

O)I1sumption Charge Potable Water Residential

Block Rates (Per CCF)

3. BASI (0--6) $0.64 $0.65

4. BAS2 (7--12) $0.77 $0.82

5. BAS3 (13--21) $1.07 $1.14

6. BAS4 (22--45) $1.45 $1.55

7. BAS5 (Over 45) $2.66 $2.84

Consumption Charge Potable Water Commercial


8. All CCF (No Cap) $1.03 $1.10

Consumption Charge Residential Irrigation

Block Rates (per

263

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Line

CCF)

9. BASI (0--9) $1.07 $1.1 4

10. BAS2 (1 0--33) $1.45 $1.55

11. BAS3 (Over 33) $2.66 $2 .84

Consumption Charge Commercial and Common Area Irrigation


12 . BAS 1 (0--33) $1.07 $1.14

13. BAS2 (Over 33) $1.45 $1.55

(2) Inside the cityzmter ?'aIr:; (TCA L):

TABLE JNSET:

Line Rates Effective 11 /01/2009 Rates Effective

No. D eSCliption 11 /01/20 10

Cuswmer Charge Res idential, Mlsre"-Meter, Commercial, and Sprinklers

Meter Size

14. Al.l. ME TE R SIZES

$7.70 $7.85

CuStO Jl1er Charge Inig<ltioll

IS. ALL METER SIZES

$4.03 $4.31

O:Hlsumplio n Charge (Per 1,000 Ga llons)

Consumplio n C1urge Pouble W.lte r Residential .-..

Block It nes (Per TGAl )

16. BASI (C·-4) $086 $0.88

17. BAS2 (5--8) $1.02 $1.09

18. BAS} (9--15) $1.43 $ 1.53

19. BAS4 (16--33) $1.94 $2.07

20. BASS (Over 33) $3.56 $3.80

Consumption Charge Potable Water Conullercial

Block Rates (Per TGAL)

21. All CCF (No Cap) $1.38 $1.47

Consumption Charge Irrigation Res idemial


22. BASI (0--7) $1.43 $1.53

23. BAS2 (8--25) $1.94 $2.07

24. BAS3 (Over 25) $3.56 $3.80

264

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megan

Line

Consumption Charge lnigation Commercial and Common Area

Block Rates (Per TG AL)

25. BAS 1 (0--25) $1.43 $1.53

26. BAS2 (lwer 25) $1.94 $2.07

(3) Ot1siJ!c the city miter ratl5 exduding GiStOl1TYS connected to the RI1)t1l Highlands Water T reatrren1 Plant (CCF):

TABLE INSET:

Line N o. Description

Rates Effective Rates Effective 11/01/2009 11/01/2010

Customer Charge Residential, M1ster-Meter, Commerci"l, lITIgation "nd Sprinklers

Meter Size

27. AU. NfETERSIZES $9.63 $9.81

Customer Chal'ge liTIgation

28. I\LL J'v1E TER SJZE S $5.04 $5J')

Consumption Charge (Per 1 CQ~ ~ 100 Cubic Feet ~ 748 G allons)

Consumption Ch"rge Pot"blc Water Residential

Bloc k Rates (Per CCF)

29. BAS 1 (0-6) $0.80 $0.81

30. BAS2 (7-- 12) $0.96 $1.03

31. BAS3 (13--21) $1.34 $1.43 -.;

J _ . BAS4 (22--45) $1.8 1 $1.94

3.1. BASS ((~'e r 45) $3.3 3 $.1.55

Consumption Ch,lrge Potable \'Vater Commercial

Bloc k Rates (Per CCF)

34. All CCF (No C,p) $1.29 $1.38

C...onsumption Charge lITIgation Residential

Block Rales (Per CQ~

35. BAS 1 (0--9) $1.34 $1.43

36. BAS 2 (10--33) $1.81 $1.94

37. BAS3 (Over 33) $3.33 $3.55

Consumption Charge lnigation C.ommercial and C.ommon Area


38. BAS 1 (0--33) $1.34 $1.43

39. BAS2 (Over 33) $1.81 $1.94

265

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Line

(4) Outside dJe city wter ram exdudirrg GlStOYlm corrro::t<d to the Ra;d Hig,larvis \~ater T IW.trrl'I'IL Plam {TGAL}:

TABLE INSET:

Line Rates Effective 11/01/2009 Rates Effective

No. Description 11/0112010

CustOmer Charge Residential, Master-Meter, CAlmrnercial, and Sprinklers

Meter Size

40. ALL METER SIZES $9.63 $9 .81


Meter Size

41. ALL lvlETER SIZES $5.04 $5.39

Co nsumplion 01arge (Per 1 TGAL = 1000 Gallons)

Co nsumption Charge (Pc I'I ,000 Ga llons)

C.o llsumption Charge POl.lb le WaleI' Res idcmial

Block RClres (Per TG 1\1.) 42 . BAS 1 (0--4) $1.08 $1.10

n . _ _ " ___

43. BA52 (5-- 8) $1.28 $U6 - --

44. BAS) (9-15) $1.79 $1.9 1

45. 13AS4 (16-33) $2.43 $2.59

46. BASS (Over 33) $4.45 $4.75

G)llsumptioll Charge 1'00Clb ie W,ller Commercial

Block R.ucs (Pc r TGAL)

47. r\ 1I CO: (No C lp) $1 .73 $ 1.84

COllsumption Charge [rrig.1\.ion Rcsidcmi"l

Bloc k Rlles (Per TGAL)

48. [l AS 1 (0--7) $1.79 $1.91

49 . BAS2 (8--25) $2.43 $2.59

50. BAS} (Over 25) $4.45 $4.75

Consumption Olarge Commercial and Common Area [ITIgation


51. BAS I (0--25) $1 .79 $1.91

52. BAS2 (Over 25) $2.43 $2.59

(3) OU15ide tiJe city wIter rate:; onlyjOr GlStorrlYS IXJJ'D'1fXted to the RO)/'l/ Hig,larvis Water T reatnrnt Plam {CeF}:

--

266

TABLE INSET:

Line No. Description Rates EffeCTive 08/01/ 201 1

Customer Charge Res idemill, M,ster-Meter, Gmunercial, In-igation and Sprinklers

Meter Size

27. ALL METER SIZES $9.81


28 . ALL METER SIZES $5.39

Consumption Charge (Per 1 CCF = 100 Cubic Feet = 748 Ga llons)

C'.onsumption C1urge Potable Water Res ident~1 1


29. BASI (0--6) $0.8 1

30. BAS2 (7 ·-12) $1.03

.i1. BAS) (13·· 21) $1.43 ') J_. BAS4 (22- .45) $3.88

33. B1\S5 (Over 45) $10.65

Consumption C1l.1rge Potable Water Commercial

Block Rates (Per CCF) .i .j . All CCF (No Glp) $1.38

Consumption Charge Inigmion Res idential

Block Rates (per CCF)

35. BAS I (0· ·9) $1.43 3(), BAS2 (1O·· j3) $3.88

.,7. BAS.\ (Over 33) $10.6"

C.onsumption 01.1rge Irrigation CO Jl1merci,ll .1I1d (D1l1mOIl Are"


38. BA'il (0--33) $1.43

39 . BAS2 (Over 33) $1.94

(4) Ours ide dJe city 'UI1tl!r rate; only Jar GfStOI11?1'5 cunnealXi to rhe Ray:d Hifi;/ands Wtlfer T Yr!atl11mt Plant

(TGAL):

267

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Line

TABLE INSET:

Line Rates Effective 11/01/2010

No. Description


Meter Size



Meter Size


Consumption Charge (Per 1 TGAL ~ 1000 C;allons)

CDnsumption Chargc (Per 1,000 Gallons)

C..onsumption Charge Potable \'Vater Residential

Block Rates (Pcr TGAL)

42 . BAS1 (0--4) $1.10

43. Br\S2 (5-- 8) $1.36 44. BAS3 (9- -15) $1.9 1

43. BAS4 (16--33) $5.18 46. B/\55 (Over 33) $14.25

Cnl1S11mption Charge Pmable \'Vater Commercial


47. All CCF (No e ,p) $1.84

Consumption Charge Inigation Res identia l

Block Rat es (Per TGAl)

48. BAS! (0 -7) $1.91 49. BAS2 (8-- 25) $).18

50. BAS3 (Over 25) $14.25 Consumption Charge CDmmcrcial and Cnmmon Area Irrigation


51. BAS! (0-- 25) $1.91

52. BAS2 (Over 25) $2.59

If the withdrawals from the Roy"l Highlands Wellfield have been within limits established in C..ondition 24 of Cnnsumptive Use Pemlit 94 for two consecutive full calendar years after the effective date of this Ordinance, the BAS4 rates shown in subsections (3) and (4) above, for customers connected to the Royal Highlands Water Treatment Plant only, as those rates may have been adjusted under §22 - 166 of this C..ode, shall dec rease by 25%, and BASS rates shown in those same subsections (as adjusted under §22 - 166) shall decrease by 33%. However, if in any calendar year withdrawals exceed the limits of Condition 24, the BAS4 and BASS rates in those subsections

268

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Line

shall revert to the higher rate for BAS4 and BASS, computed based on the rates shown in those subsections as adjusted under §22 - 166 up to the time of the increase.

No additional connections shall be made to the Royal Highlands Water Treatment Plant following the effective date of this Ordinance, except for the following:

(i) Lots within the follo,,~ng plats comprising the development Roy.:d Highlands, which have never been connected to the Royal Highlands Water Treatment Plant before the effective date of this Ordinance: Plat Book 37, Page 3; Plat Book 43, Page 66; Plat Book 39, Page 32; Plat Book 40, Page 34; Plat Book 41, Page 49; Plat Book 44, Page 31; Plat Book 44, Page 91; Plat Book 46 , Page 59; Plat Book 50, Page 30; and P lat Book 38, Page 16; all in the Public Records of Lake County, Florida.

(ii) Lots within the plat of Whitemarsh, according to the plat thereof recorded in Plat Book 61, Page 22, Public Records of Lake County, FIOlida, which have never been connected to the ROY11 Highbnds Water Treatment Plant before the effective date of this Ordinance.

(iii) Such other connections as are approved by Resolution adopted by the Leesburg City Commission.

In all C<ltcgo lics, fo r inst:l11ations ,,·hich have fire protcction systems utilizing City w,n.er, whether or not metered, there shall be imposed a monthly availab ility charge, reg:mlless of actllaillsagc, in the arnoum of twO dolLm ($2 .00) per inch diameter of sen'ice pipe serving the fire protect ion system.

SECTION III.

All ordill:1llces or pan of ordill.1nces which are in conflict with this Ordinance are hereby repealed, to the extent necessary to alleviate the conflict, but shall continue in effect insofar as they are not in conflict herewith, unless repeal of the conflicting ponio[1 destroys the o\'e l~lll il1lent and eHeer of anyof the conflicting ordinance, in '",hich case those ordinances so affected shall be hereby repea led in their emiretv.

SECTION TV.

If any ponion of this Ordinance is declared invalid or unenforceable, and to the extent that it is possible to do so without destroying the ovel0111 intent and effect of this Ordinance, the ponion deemed invalid or unenforceable shall be severed herefrom and the remainder of the ordinance shall continue in full force and effect as if it were enacted without including the ponion found to be invalid or unenforceable.

269

SECfIONV.

This Ordinance shall become effective upon its passage and adoption according to law.

PASSED AND ADOPTED at the regular meeting of the City Commission of the City of Leesburg, Florida, held on the 25 day of July ,2011.

THE OTY OF LEESBURG, FLORIDA

Attest:@~Wvv rTYO . . RK

270

ORDINANCE NO. 08-14

AN ORDINANCE OF THE CITY OF LEESBURG, FLORIDA, AMENDING SECTION 22-227 OF THE CODE OF ORDINANCES PERTAINING TO POLLUTION ABATEMENT CHARGES; ESTABLISHING NEW RATE SCHEDULES FOR POLLUTION ABATEMENT CHARGES; PROVIDING FOR RATES EFFECTIVE MARCH 1, 2008; PROVIDING NEW PROPOSED BLOCK RATES; PROVIDING FOR RATES INSIDE AND OUTSIDE CITY LIMITS; PROVIDING FOR CONFLICTS; PROVIDING A SAVINGS CLAUSE; AND PROVIDING AN EFFECTIVE DATE.

BE IT ENACTED BY THE PEOPLE OF THE CITY OF LEESBURG, FLORIDA, that:

SECTION 1.

Section 22-227, of the Code of Ordinances of the City of Leesburg, Florida, is hereby amended in its entirety to read as:

Each classification of user shall be assessed the following charges for pollution abatement:

(1) Inside the City Wastewater Rates (CCF): Customer Charge Residential and Master-Meter

Proposed Rates Line Rates Effective No. Description 03/0112008

Meter Size I. ALL METER SIZES $ 20.10

New Proposed Block Rates 03/0112008

Consumption Charge (Per I CCF = Cubic Feet = 748 Gallons)

2.

3. 4. 5. 6.

Consumption Charge Wastewater Residential Block Rates (Per CCF)

Usage Up to 15 CCF $ 1.04200

Customer Charge Commercial and Municipal Commercial and Municipal Classes

COMMERCIAL I COMMERCIAL II COMMERCIAL III COMMERCIAL IV

$ 20.91 $ 35 .59 $ 87.43 $ 20.10

New Proposed Block Rates CCF)

Up to 21 CCF

271

Conswnption Charge (per 1 CCF = 100 Cubic Feet = 748 Gallons)

Consumption Charge Wastewater Commercial and Municipal Block Rates (Per CCF)

COMMERCIAL I 7. All CCF (No CAP) $ 1.71900

COMMERCIAL II 8. All CCF (No CAP) $ 2.13600

COMMERCIAL III 9. All CCF (No CAP) $ 2.65700

COMMERCIAL IV 10. All CCF (No CAP) $ 1.04200

I.

2.

3. 4. 5. 6.

7.

8.

(2) Inside the City Wastewater rates (1,000 Gallons): Customer Charge Residential and Master-Meter

Meter Size ALL METER SIZES $ 20.10

Consumption Charge (Per 1,000 Gallons) Conswnption Charge Wastewater Residential Block Rates (Per 1,000 Gallons)

Usage Up to 11 ,000 Gallons $ 1.39400

New Proposed Blocks(Th. Gall.) Up to 15,000 Gall.


COMMERCIAL I COMMERCIAL II COMMERCIAL III COMMERCIAL IV

$ 20.91 $ 35.59 $ 87.43 $ 20.10

Consun1ption Charge Wastewater Commercial and Municipal Block Rates (Per 1,000 Gallons)

COMMERCIAL I All CCF (No CAP)

COMMERCIAL II All CCF (No CAP)

$ 2.29800

$ 3.85600

272

COMMERCIAL III 9. All CCF (No CAP) $ 3.55200


(3) Outside the City Wastewater Rates (CCF): Customer Charge Residential and Master-Meter

Proposed Rates New Proposed Line Rates Effective Block Rates No. Description 03/0112008 03 /0112008

Meter Size

I. ALL METER SIZES $ 25.13

Consumption Charge (Per I CCF = 100 Cubic Feet = 748 Gallons)

2.

Consumption Charge Wastewater Residential Block Rates (Per CCF)

Usage Up to 15 CCF $ 1.30300


3. COMMERCIAL I $ 26.14 4. COMMERCIAL II $ 44.49 5. COMMERCIAL 111 $ 109.29 6. COMMERCIAL IV $ 25.13

New Proposed Block Rates Th. Gall) .

Up to 21 CCF

Consumption Charge (per 1 CCF = 100 Cubic Feet = 748 Gallons)

7.

8.

9.

Consumption Charge Wastewater Commercial and Municipal Block Rates (Per CCF)

COMMERCIAL I All CCF (No CAP)

COMMERCIAL II All CCF (No CAP)

COMMERCIAL III All CCF (No CAP)

$ 2.14900

$ 2.67000

$3.32100

273


(4) Outside the City Wastewater Rates (1.000 Gallons): Customer Charge Residential and Master-Meter

Proposed Rates New Proposed Line Rates Effective Block Rates No. Description 03/0112008 03/0112008

I.

2.

Meter Size ALL METER SIZE $ 25.13 Consumption Charge (Per 1,000 Gallons) Consumption Charge Wastewater Residential

Block Rates (Per 1,000 Gallons) Usage Up to 11 ,000 Gallons

Usage Up to 11 ,000 Gallons $ 1.74200


3. COMMERCIAL I $ 26.14

4. COMMERCIAL II $ 44.49

5. COMMERCIAL III $ 109.29

6. COMMERCIAL IV $ 25.13

New Proposed Block Rates (Th. Gall.)

Up to 15,000 Gall.

Consumption Charge Wastewater Commercial and Municipal Block Rates (Per 1,000 Gallons)

COMMERCIAL I 7. All CCF (No CAP) $ 2.87300

COMMERCIAL 1I 8. All CCF (No CAP) $ 3.57000

COMMERCIAL 1II 9. All CCF (No CAP) $ 4.44000


274

SECTlON2.

All ordinances or part of ordinances which are in conflict with this Ordinance are hereby repealed, to the extent necessary to alleviate the conflict, but shall continue in effect insofar as they are not in conflict herewith, unless repeal of the conflicting portion destroys the overall intent and effect of any of the conflicting ordinance, in which case those ordinances so affected shall be hereby repealed in their entirety.

SECTION 3.

If any portion of this Ordinance is declared invalid or unenforceable, and to the extent that it is possible to do so without destroying the overall intent and effect of this Ordinance, the portion deemed invalid or unenforceable shall be severed herefrom and the remainder of the ordinance shall continue in full force and effect as if it were enacted without including the portion found to be inval id or unenforceable.

SECTION 4.

This Ordinance shall become effective upon its passage and adoption according to law.

PASSED AND ADOPTED at the regular meeting of the City Commiss ion of the City of Leesburg, Florida, held on the II th day of February , 2008.

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277

CITY

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4 $

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278

CITY

OF

LEES

BURG

, FLO

RIDA

SUM

MAR

Y O

F M

AXIM

UM

AN

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AL N

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VALO

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2009

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scal

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Year

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6 $

306

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$

476

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$

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153

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$

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Max

imum

:$

3,7

56,9

73

279

CITY OF LEESBURG, FLORIDAAGGREGATE SENIOR LIEN EXISTING DEBT SERVICE

BONDS SECURED BY EXPRESS LIEN ON NON-AD VALOREM REVENUES

AggregateFiscal Series 2008 Series 2009 Series 2013 DebtYear Carver CRA Cap Improv Cap Improv Service

2016 $ 306,399 $ 476,850 $ 1,016,562 $ 1,799,811 2017 480,143 1,013,787 1,493,930 2018 477,845 1,013,112 1,490,957 2019 479,956 1,011,987 1,491,943 2020 481,357 1,015,337 1,496,694 2021 477,167 1,010,262 1,487,429 2022 477,386 1,008,537 1,485,923 2023 476,895 1,002,662 1,479,557 2024 475,695 1,005,287 1,480,982 2025 478,667 1,009,662 1,488,329 2026 475,811 1,006,162 1,481,973 2027 477,128 1,010,337 1,487,465 2028 472,617 1,006,903 1,479,520 2029 472,278 1,006,794 1,479,072 2030 473,336 1,009,269 1,482,605 2031 1,009,694 1,009,694 2032 1,009,069 1,009,069 2033 1,001,910 1,001,910 2034 1,008,016 1,008,016 2035 1,002,853 1,002,853

$ 306,399 $ 7,153,131 $ 20,178,202 $ 27,637,732

Maximum: $ 1,799,811

280

CITY OF LEESBURG, FLORIDAAGGREGATE CB&A DEBT SERVICE

MAXIMUM ANNUAL COVENANT DEBT SERVICE

Series 2009 AggregateFiscal Series 2009 Magnolia Series 2015 DebtYear 441/27 CRA Townhomes GL CRA Service

2016 $ 903,418 $ 978,450 $ 80,343 $ 1,962,211 2017 900,194 976,320 100,510 1,977,024 2018 901,194 101,313 1,002,507 2019 901,194 101,043 1,002,237 2020 1,005,794 100,715 1,106,509 2021 1,005,794 100,329 1,106,123 2022 1,109,706 100,870 1,210,576 2023 1,108,669 100,338 1,209,007 2024 1,111,144 100,734 1,211,878 2025 1,211,863 101,042 1,312,905 2026 1,214,563 100,277 1,314,840 2027 1,215,600 100,440 1,316,040 2028 1,214,975 - 1,214,975 2029 1,217,688 - 1,217,688 2030 1,218,500 - 1,218,500 2031 1,220,250 - 1,220,250 2032 1,219,750 - 1,219,750 2033 1,222,000 - 1,222,000 2034 1,221,750 - 1,221,750 2035 1,224,000 - 1,224,000 2036 1,228,500 - 1,228,500

$ 23,576,546 $ 1,954,770 $ 1,187,954 $ 26,719,270

Maximum: $ 1,977,024

281

CITY OF LEESBURG, FLORIDAREDEVEOPMENT REVENUE NOTE, SERIES 2008

(CRA FOR CARVER HEIGHTS/MONTCLAIR TIF PROJECT)1

AnnualDate Principal Interest Debt Service Debt Service

11/1/2015 $ $ 6,400 $ 6,400 $ 6,400 5/1/2016 293,598 6,400 299,998 299,998

$ 293,598 $ 12,800 $ 306,398 $ 306,398

Resolu� on 16 of the Community Redevelopment Agency for the Carver Heights/Montclair Area, adopted December 8, 2008,authorized the issuance of the Revenue Note, Series 2008, a "quali� ed tax-exempt obliga� on." This note closed December 23, 2008.

Resolu� on 8349, adopted December 8, 2008, and as amended by Resolu� on 8357, adopted December 22, 2008, the City authorizedthe credit support as needed for the Community Redevelopment Agency for the Carver Heights/Montclair Area of its Revenue Note,Series 2008, pledging the net available revenues a� er considering the Series 2009 Note and 2004 Bonds to the extent incrementrevenues are insu� cient but not in excess of the Reserve Account Requirement.

1TIF is an acronym for Tax Increment Financing that is a public � nancing method which has been used for redevelopment andcommunity improvement projects.

282

CITY OF LEESBURG, FLORIDACAPITAL IMPROVEMENT REFUNDING PROMISSORY NOTE, SERIES 2009


10/1/2015 $ 240,000 $ 121,263 $ 361,263 4/1/2016 115,587 115,587 $ 476,850

10/1/2016 255,000 115,587 370,587 4/1/2017 109,556 109,556 480,143

10/1/2017 265,000 109,556 374,556 4/1/2018 103,289 103,289 477,845

10/1/2018 280,000 103,289 383,289 4/1/2019 96,667 96,667 479,956

10/1/2019 295,000 96,667 391,667 4/1/2020 89,690 89,690 481,357

10/1/2020 305,000 89,690 394,690 4/1/2021 82,477 82,477 477,167

10/1/2021 320,000 82,477 402,477 4/1/2022 74,909 74,909 477,386

10/1/2022 335,000 74,909 409,909 4/1/2023 66,986 66,986 476,895

10/1/2023 350,000 66,986 416,986 4/1/2024 58,709 58,709 475,695

10/1/2024 370,000 58,709 428,709 4/1/2025 49,958 49,958 478,667

10/1/2025 385,000 49,958 434,958 4/1/2026 40,853 40,853 475,811

10/1/2026 405,000 40,853 445,853 4/1/2027 31,275 31,275 477,128

10/1/2027 420,000 31,275 451,275 4/1/2028 21,342 21,342 472,617

10/1/2028 440,000 21,342 461,342 4/1/2029 10,936 10,936 472,278

10/1/2029 462,400 10,936 473,336 473,336 $ 5,127,400 $ 2,025,731 $ 7,153,131 $ 7,153,131

283

CITY OF LEESBURG, FLORIDATAX INCREMENT REVENUE BONDS, SERIES 2009

(CRA FOR US HIGHWAY 441/27 TIF PROJECT)


11/1/2015 $ 334,209 $ 334,209 5/1/2016 $ 235,000 334,209 569,209 $ 903,418

11/1/2016 330,097 330,097 5/1/2017 240,000 330,097 570,097 900,194

11/1/2017 325,597 325,597 5/1/2018 250,000 325,597 575,597 901,194

11/1/2018 320,597 320,597 5/1/2019 260,000 320,597 580,597 901,194

11/1/2019 315,397 315,397 5/1/2020 375,000 315,397 690,397 1,005,794

11/1/2020 307,897 307,897 5/1/2021 390,000 307,897 697,897 1,005,794

11/1/2021 299,853 299,853 5/1/2022 510,000 299,853 809,853 1,109,706

11/1/2022 289,334 289,334 5/1/2023 530,000 289,334 819,334 1,108,669

11/1/2023 278,072 278,072 5/1/2024 555,000 278,072 833,072 1,111,144

11/1/2024 265,931 265,931 5/1/2025 680,000 265,931 945,931 1,211,863

11/1/2025 249,781 249,781 5/1/2026 715,000 249,781 964,781 1,214,563

11/1/2026 232,800 232,800 5/1/2027 750,000 232,800 982,800 1,215,600

11/1/2027 214,988 214,988 5/1/2028 785,000 214,988 999,988 1,214,975

11/1/2028 196,344 196,344 5/1/2029 825,000 196,344 1,021,344 1,217,688

11/1/2029 176,750 176,750 5/1/2030 865,000 176,750 1,041,750 1,218,500

11/1/2030 155,125 155,125 5/1/2031 910,000 155,125 1,065,125 1,220,250

11/1/2031 132,375 132,375 5/1/2032 955,000 132,375 1,087,375 1,219,750

11/1/2032 108,500 108,500 5/1/2033 1,005,000 108,500 1,113,500 1,222,000

11/1/2033 83,375 83,375 5/1/2034 1,055,000 83,375 1,138,375 1,221,750

11/1/2034 57,000 57,000 5/1/2035 1,110,000 57,000 1,167,000 1,224,000

11/1/2035 29,250 29,250 5/1/2036 1,170,000 29,250 1,199,250 1,228,500

$ 14,170,000 $ 9,406,544 $ 23,576,544 $ 23,576,546

284

CITY OF LEESBURG, FLORIDACAPITAL IMPROVEMENT REFUNDING REVENUE NOTE, SERIES 2009

(MAGNOLIA TOWNHOMES PROJECT)


11/1/2015 $ 930,000 $ 32,130 $ 962,130 5/1/2016 16,320 16,320 $ 978,450

11/1/2016 960,000 16,320 976,320 976,320 $ 1,890,000 $ 64,770 $ 1,954,770 $ 1,954,770

285

CITY OF LEESBURG, FLORIDACAPITAL IMPROVEMENT REFUNDING REVENUE BONDS, SERIES 2013


10/1/2015 $ 505,000 $ 258,306 $ 763,306 4/1/2016 253,256 253,256 $ 1,016,562

10/1/2016 515,000 253,256 768,256 4/1/2017 245,531 245,531 1,013,787

10/1/2017 530,000 245,531 775,531 4/1/2018 237,581 237,581 1,013,112

10/1/2018 545,000 237,581 782,581 4/1/2019 229,406 229,406 1,011,987

10/1/2019 565,000 229,406 794,406 4/1/2020 220,931 220,931 1,015,337

10/1/2020 580,000 220,931 800,931 4/1/2021 209,331 209,331 1,010,262

10/1/2021 605,000 209,331 814,331 4/1/2022 194,206 194,206 1,008,537

10/1/2022 630,000 194,206 824,206 4/1/2023 178,456 178,456 1,002,662

10/1/2023 665,000 178,456 843,456 4/1/2024 161,831 161,831 1,005,287

10/1/2024 700,000 161,831 861,831 4/1/2025 147,831 147,831 1,009,662

10/1/2025 725,000 147,831 872,831 4/1/2026 133,331 133,331 1,006,162

10/1/2026 755,000 133,331 888,331 4/1/2027 122,006 122,006 1,010,337

10/1/2027 775,000 122,006 897,006 4/1/2028 109,897 109,897 1,006,903

10/1/2028 800,000 109,897 909,897 4/1/2029 96,897 96,897 1,006,794

10/1/2029 830,000 96,897 926,897 4/1/2030 82,372 82,372 1,009,269

10/1/2030 860,000 82,372 942,372 4/1/2031 67,322 67,322 1,009,694

10/1/2031 890,000 67,322 957,322 4/1/2032 51,747 51,747 1,009,069

10/1/2032 915,000 51,747 966,747 4/1/2033 35,163 35,163 1,001,910

10/1/2033 955,000 35,163 990,163 4/1/2034 17,853 17,853 1,008,016

10/1/2034 985,000 17,853 1,002,853 1,002,853 $ 14,330,000 $ 5,848,202 $ 20,178,202 $ 20,178,202

286

CITY OF LEESBURG, FLORIDACAPITAL IMPROVEMENT REVENUE NOTE, SERIES 2015

(GREATER LEESBURG CRA)

AnnualPeriod Debt DebtEnding Principal Interest Service Service

10/01/2015 $ 52,000 $ 14,550 $ 66,550 $ 80,343 04/01/2016 13,793 13,793 10/01/2016 74,000 13,793 87,793 100,510 04/01/2017 12,717 12,717 10/01/2017 77,000 12,717 89,717 101,313 04/01/2018 11,596 11,596 10/01/2018 79,000 11,596 90,596 101,043 04/01/2019 10,447 10,447 10/01/2019 81,000 10,447 91,447 100,715 04/01/2020 9,268 9,268 10/01/2020 83,000 9,268 92,268 100,329 04/01/2021 8,061 8,061 10/01/2021 86,000 8,061 94,061 100,870 04/01/2022 6,809 6,809 10/01/2022 88,000 6,809 94,809 100,338 04/01/2023 5,529 5,529 10/01/2023 91,000 5,529 96,529 100,734 04/01/2024 4,205 4,205 10/01/2024 94,000 4,205 98,205 101,042 04/01/2025 2,837 2,837 10/01/2025 96,000 2,837 98,837 100,277 04/01/2026 1,440 1,440 10/01/2026 99,000 1,440 100,440 100,440

$ 1,000,000 $ 187,954 $ 1,187,954 $ 1,187,954

287


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