|
CITY OF CASSELBERRY, FLORIDA
<br />MANAGEMENT'S DISCUSSION AND ANALYSIS Continued
<br />September 30, 2018
<br />Long-term Debt
<br />At the end of FY 2018, the City had total long-term debt outstanding of $20,844,602. This is a decrease of
<br />$(1,352,515) from the prior year. Of the total debt amount, $18,460,874 pertains to notes and loans payable
<br />at year-end. Notes and loans payable are the largest percentage of the City's overall outstanding debt. There
<br />is no debt limitation according to City Code. There was a decrease of notes and loans payable for
<br />governmental activities of $(1,480,000) and a decrease of $(1,060,487) for business -type activities, primarily
<br />due to regularly scheduled debt service payments. In FY 2018 there was an increase in governmental funds
<br />capital leases of $127,798 due to the purchase of police and public works vehicles, along with other necessary
<br />capital equipment offset by regular debt service payments. The increase of $1,060,174 in business -type
<br />capital leases was due to the purchase of equipment, by-pass pumps and a diesel fuel tank offset by regular
<br />debt service payments.
<br />The following table presents the City's long-term notes and loans payable and capital leases, and the changes
<br />from the prior fiscal year.
<br />City of Casselberry, Florida
<br />Outstanding Long-term Debt
<br />Governmental Activities
<br />2018 2017
<br />Business -type Activities
<br />2018 2017
<br />Total
<br />2018 2017
<br />Notes and Loans Payable $ 12,923,000 $ 14,403,000 $ 5,537,874 $ 6,598,361 $ 18,460,874 $ 21,001,361
<br />Capital Leases 1,223,274 1,095,476 1,160,454 100,280 2,383,728 1,195,756
<br />$ 14,146,274 $ 15,498,476 $ 6,698,328 $ 6,698,641 $ 20,844,602 $ 22,197,117
<br />Additional information on the City's debt, including pledged future revenue sources that secure the debt, can
<br />be found in Note 7 of this report.
<br />Economic Factors and Next Year's Budgets and Rates
<br />Local, national and international economic factors influence the City's revenues in a variety of ways. Positive
<br />economic growth is correlated with increased revenues from property taxes, sales taxes, fuel taxes, charges
<br />for services, state revenue sharing as well as state and federal grants. Economic growth may be measured
<br />by a variety of indicators such as employment growth, new construction, assessed property values, enterprise
<br />fund revenue and net asset growth. In spite of rising costs due to a strong economy, the fiscal year 2018
<br />budget did not require any reduction in the level of services. This was accomplished by adhering to the City's
<br />comprehensive financial policies, a thorough reassessment of the base budget and a critical review of all
<br />proposed additions to the budget.
<br />Continued improvement in the economic environment is anticipated in FY 2019. The unemployment rate for
<br />Seminole County is reported to be 3.5% as of September 30, 2018 as compared to the state unemployment
<br />rate of 3.5% and the national unemployment rate of 3.7%.
<br />The City Commission adopted the tax millage rate of 3.0519 in fiscal year 2019 to sufficiently fund the current
<br />level of services to the citizens and business owners of Casselberry. The taxable value of real property
<br />increased by 19.5% in 2018.
<br />PAO]
<br />
|