2019 Comprehensive Annual Financial Report(PDF, 5MB)

CITY OF ORLANDO, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT UnionWest in Creative Village FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2019 COMPREHENSIVE ANNUAL FINANCIAL REPORT City of Orlando, Florida For the Fiscal Year Ended September 30, 2019 Prepared by: Office of Business and Financial Services This page intentionally blank. This page intentionally blank. CITY OF ORLANDO, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2019 TABLE OF CONTENTS Page I. INTRODUCTORY SECTION Letter of Transmittal 1 Certificate of Achievement for Excellence in Financial Reporting 9 Organization Chart 11 List of Officials 13 II. FINANCIAL SECTION Independent Auditor’s Report 15 A. MANAGEMENT’S DISCUSSION AND ANALYSIS (required supplementary information) 17 B. BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Position 37 Statement of Activities 38 Fund Financial Statements Governmental Fund Financial Statements Balance Sheet 40 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 41 Statement of Revenues, Expenditures, and Changes in Fund Balances 42 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 43 Proprietary Fund Financial Statements Statement of Net Position – Business-type Activities – Enterprise Funds – Governmental Activities – Internal Service Funds 46 Statement of Revenues, Expenses, and Changes in Net Position – Business-type Activities – Enterprise Funds – Governmental Activities – Internal Service Funds 48 Statement of Cash Flows – Business-type Activities – Enterprise Funds – Governmental Activities – Internal Service Funds 50 Fiduciary Fund Financial Statements Statement of Fiduciary Net Position 56 Statement of Changes in Fiduciary Net Position 57 Component Unit Fund Financial Statements Statement of Net Position 58 Statement of Activities 59 Notes to Financial Statements Note 1 - Summary of Significant Accounting Policies 61 Note 2 - Stewardship, Compliance, and Accountability 72 Note 3 - Property Taxes 73 Note 4 - Deposits and Investments 74 Note 5 - Net Position, Fund Balance, Interfund Transfers, Receivables and Payables, and Restricted Assets 86 Note 6 - Capital Assets 90 Note 7 - Commitments and Contingencies 91 Note 8 - Risk Management 95 CITY OF ORLANDO, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2019 TABLE OF CONTENTS (Continued) Page Notes to Financial Statements (continued) Note 9 - Leases 97 Note 10 - Long-Term Obligations 98 Note 11 - Pension Plans 112 Note 12 - Other Employee Benefits 122 Note 13 - Other Post Employment Benefits 122 Note 14 - Tax Abatements 130 Note 15 - Component Unit 131 Note 16 - Joint Venture 132 Note 17 - Other Organizations 132 Note 18 - Summary Disclosure of Significant Contingencies 133 Note 19 - CRA Trust Funds 135 Note 20 - Downtown South Neighborhood Improvement District (NID) 137 Note 21 - Subsequent Events 137 C. REQUIRED SUPPLEMENTARY INFORMATION (other than MD&A) Budget to Actual Comparison – Major Funds (General and Special Revenue) General Fund 140 Community Redevelopment Agency 141 Pension and Other Post Employment Benefits (OPEB) Schedules Schedules of Changes in Net Pension Liability - Defined Benefit Pension Plans 144 Schedules of Contributions - Defined Benefit Pension Plans 147 Schedule of Investment Returns - Defined Benefit Pension Plans 150 Schedule of Net Pension Liability - Defined Benefit Pension Plans 151 Schedule of Changes in Net OPEB Liability and Related Ratios 152 Schedule of Contributions - OPEB 153 Schedule of Investment Returns - OPEB 154 D. COMBINING FINANCIAL STATEMENTS AND SCHEDULES Community Redevelopment Agency Balance Sheet 156 Schedule of Revenues, Expenditures, and Changes in Fund Balance 158 Non-Major Governmental Funds Balance Sheet 162 Statement of Revenues, Expenditures, and Changes in Fund Balance 166 Budget to Actual Comparison Other Major and Non-Major Governmental Funds Capital Improvement Fund (Major Fund) 169 Housing and Urban Development (HUD) Grants 170 CITY OF ORLANDO, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2019 TABLE OF CONTENTS (continued) Page Budget to Actual Comparison Other Major and Non-Major Governmental Funds (continued) State Housing Partnership (SHIP) Fund 171 Grant Fund 172 Forfeitures Act 173 Special Assessments 174 Downtown South Neighborhood Improvement District 175 H.P. Leu Gardens 176 Cemetery Fund 177 Building Code Enforcement 178 GOAA Police Fund 179 Gas Tax Fund 180 Impact Fees 181 Public Safety Construction Fund 182 Internal Service Funds Statement of Net Position 184 Statement of Revenues, Expenses, and Changes in Fund Net Position 186 Statement of Cash Flows 188 Fiduciary Funds Statement of Fiduciary Net Position 194 Statement of Changes in Fiduciary Net Position 196 Agency Fund, Statement of Changes in Assets and Liabilities 198 E. SUPPLEMENTAL INFORMATION Summary of Debt Service Requirements to Maturity 200 Statements of Bonded Debt and Interest Primary Government Community Redevelopment Agency Downtown District Tax Increment Bonds 202 Republic Drive (Universal Boulevard) Tax Increment Revenue Refunding Bonds 204 Conroy Road Tax Increment Revenue Refunding Bonds 206 Capital Improvement Special Revenue Bonds 207 Wastewater System Revenue Bonds 223 Orlando Venues State Sales Tax and Tourist Development Tax Bonds 224 III. STATISTICAL SECTION Financial Trends Net Position by Component 231 Changes in Net Position 232 Fund Balances of Governmental Funds 235 Changes in Fund Balances of Government Funds 236 Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property 238 Direct and Overlapping Property Tax Rates 239 Principal Property Taxpayers 240 Property Tax Levies and Collections 241 CITY OF ORLANDO, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2019 TABLE OF CONTENTS (Continued) Page III. STATISTICAL SECTION (continued) Debt Capacity Ratios of Outstanding Debt by Type 242 Ratios of General Bonded Debt Outstanding 243 Direct and Overlapping Governmental Activities Debt 244 Pledged-Revenues Coverage Primary Government Community Redevelopment Agency - Downtown District 245 Community Redevelopment Agency - Republic Drive (Universal Boulevard) District 246 Community Redevelopment Agency - Conroy Road District 247 Water Reclamation System 248 Internal Loan Fund Revenue Dilution Test 249 Orlando Venues 250 Demographic and Economic Information Demographic and Economic Statistics 252 Principal Employers 253 Operating Information Full Time Equivalent City Government Employees by Function/Program 254 Operating Indicators by Function/Program 255 Capital Assets Statistics by Function/Program 256 IV. SINGLE AUDIT/GRANTS COMPLIANCE Schedule of Expenditures of Federal Awards and State Financial Assistance 258 Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance 263 Independent Auditor's Report on Compliance for Each Major Federal Program and Major State Project and on Internal Control over Compliance and Report on Schedule of Expenditures 264 Schedule of Findings and Questioned Costs 267 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 269 March 25, 2020 Mayor Buddy Dyer, City Commissioners, and Citizens of the City of Orlando It is our pleasure to submit this Comprehensive Annual Financial Report (CAFR) for the City of Orlando, Florida for the fiscal year ended September 30, 2019. The report fulfills the requirements set forth by State law, in accordance with Section 218.39, Florida Statutes, and Chapter 10.550 Rules of the Auditor General, which requires that all general purpose local governments publish each fiscal year a complete set of financial statements presented in conformity with accounting principles generally accepted in the United States (GAAP) and audited in accordance with auditing standards generally accepted in the United States by a firm of licensed certified public accountants. This CAFR consists of management’s representations concerning the City of Orlando’s finances. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Orlando has established a comprehensive internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to compile sufficient, reliable information for the preparation of the City of Orlando’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City of Orlando’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. Florida Statutes require that an annual financial audit be performed by independent certified public accountants. This year, the audit was performed by MSL, P.A. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Orlando for the

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