ANNUAL COMPREHENSIVE

FINANCIAL REPORT

The City of Winter Park, Florida For The Year Ended September 30, 2024

Prepared by the Finance Department

INTRODUCTORY SECTION

PRINCIPAL CITY OFFICIALS

TABLE OF CONTENTS

LETTER OF TRANSMITTAL

CERTIFICATE OF ACHIEVEMENT

ORGANIZATIONAL CHART

City of Winter Park, Florida Principal City Officials

September 30, 2024

City Commission Mayor Sheila G. DeCiccio Vice Mayor Todd C. Weaver Commissioners Kristopher M. Cruzada

Craig E. Russell Marty Sullivan

Administrative City Manager Randy B. Knight Assistant City Manager Michelle M. del Valle City Attorney Kurt Ardaman

Administrative Staff Budget & Strategic Programming Director Peter Moore Building & Permitting Services Director Gary L. Hiatt City Clerk Rene S. Cranis Communications Director Clarissa C. Howard Electric Utility Director Jamie J. England Finance Director Charles W. Hamil, III Fire Chief Daniel L. Hagedorn Human Resources Director Pamela J. Russell Information Technology Director Parsram Rajaram Natural Resources & Sustainability Director Gloria M. Eby Parks & Recreation Director Jason B. Seeley Planning & Zoning Director Allison McGillis Police Chief Timothy R. Volkerson Public Works & Transportation Director Charles A. Ramdatt Water & Sewer Utilities Director David L. Zusi

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The City of Winter Park, Florida Annual Comprehensive Financial Report

For the Fiscal Year Ended September 30, 2024

TABLE OF CONTENTS

I. INTRODUCTORY SECTION

Principal City Officials 1 Table of Contents 3 Letter of Transmittal 7 Certificate of Achievement 14 Organizational Chart 16

II. FINANCIAL SECTION

Independent Auditor’s Report 17

Management’s Discussion and Analysis (Unaudited) 21

Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position 37 Statement of Activities 38

Fund Financial Statements:

Balance Sheet – Governmental Funds 39 Reconciliation of the Balance Sheet to the Statement of Net

Position – Governmental Funds 40 Statement of Revenues, Expenditures, and Changes in

Fund Balances – Governmental Funds 41 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 42

Statement of Net Position – Proprietary Funds 43 Statement of Revenues, Expenses, and Changes in

Fund Net Position – Proprietary Funds 44 Statement of Cash Flows – Proprietary Funds 45 Statement of Fiduciary Net Position – Fiduciary Funds 46 Statement of Changes in Fiduciary Net Position – Fiduciary Funds 47

Notes to Financial Statements 48

Required Supplemental Information (Unaudited):

Budget to Actual Comparison – Major Funds (General and Special Revenue):

General Fund 105 Community Redevelopment Fund 106

Pension Schedules:

Schedule of City Contributions 109 Schedule of Changes in Net Pension Liability and Related Ratios:

Police Pension Plan 110 Firefighter Pension Plan 112 Schedule of Investment Returns 114

Other Postemployment Benefits:

Schedule of Changes in Total OPEB Liability and Related Ratios 116

Combining and Individual Fund Statements and Schedules:

Combining Balance Sheet – Nonmajor Governmental Funds 122 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds 124 Budget to Actual Comparison – Nonmajor Governmental Funds:

Stormwater Utility Fund 126 Grant Fund 127 Cemetery Trust Fund 128

Combining Statement of Net Position – Internal Service Funds 130 Combining Statement of Revenues, Expenses and Changes in

Fund Net Position – Internal Service Funds 131 Combining Statement of Cash Flows – Internal Service Funds 132

III. STATISTICAL SECTION (UNAUDITED)

Table 1 Net Position by Component 135 Table 2 Changes in Net Position 136 Table 3 Fund Balances, Governmental Funds 138 Table 4 Changes in Fund Balances, Governmental Funds 139 Table 5 Assessed and Estimated Actual Value of

Taxable Property 140 Table 6 Direct and Overlapping Property Tax Rates 141 Table 7 Principal Property Tax Payers 142 Table 8 Property Tax Levies and Collections 143 Table 9 Ratios of Outstanding Debt by Type 144 Table 10 Ratios of General Obligation Bonds Outstanding 145 Table 11 Direct and Overlapping Governmental Activities Debt 146 Table 12 Legal Debt Margin Information 147 Table 13 Tax Increment Revenue Bonds Coverage 148

Table 14 Water and Sewer Revenue Debt Coverage 149 Table 15 Electric Services Revenue Debt Coverage 150 Table 16 Demographic and Economic Statistics 151 Table 17 Principal Employers 152 Table 18 Full-time Authorized City Government Employees by Function 153 Table 19 Operating Indicators by Function/Program 154 Table 20 Supplemental Information for Water and Sewer - Customers 155 Table 21 Supplemental Information for Water and Sewer - Usage 156 Table 22 Water and Sewer Rates, Fees and Charges 157 Table 23 Supplemental Information for Electric – Customers and Usage 159 Table 24 Historical Cost of Purchased Power and Transmission 160 Table 25 Residential Electric Service Rates, Fees and Charges 161 Table 26 General Service Electric Rates, Fees and Charges 162 Table 27 Capital Asset Statistics by Function/Program 163

IV. OTHER REPORTS

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 165

Report on Compliance for Each Major Federal Program and Major State Project and on Internal Control over Compliance and Report on Schedule of Expenditures of Federal Awards and State Financial Assistance in Accordance With the Uniform Guidance and Chapter 10.550, Rules of the Auditor General 167

Schedule of Expenditures of Federal Awards and State Financial Assistance 170

Schedule of Findings and Questioned Costs 172 Independent Auditor’s Management Letter 175 Independent Accountant’s Report 179

April 3, 2025

To the Honorable Members of the City Commission and the Citizens of the City of Winter Park, Florida:

The Annual Comprehensive Financial Report (the "Annual Report") of the City of Winter Park, Florida (City) for the fiscal year ended September 30, 2024, is hereby submitted. This report consists of management’s representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City 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’s financial statements in conformity with generally accepted accounting principles (GAAP). Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free of 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.

Forvis Mazars, LLP, a firm of licensed certified public accountants, has audited the City’s financial statements. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended September 30, 2024, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City’s financial statements for the fiscal year ended September 30, 2024, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report.

GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors.

Profile of the City

The City, incorporated in 1887, is located in Central Florida in north Orange County and is considered part of the Orlando Metropolitan Area. Although the Orlando Metropolitan Area has been one of the top growth areas in the country, generally, Winter Park has seen only modest population growth since 1970. The City currently occupies a land area of approximately ten square miles and serves a population of 30,647. The City is empowered to levy a property tax on both real and personal properties located within its boundaries. It is also empowered by state statute to extend its corporate limits by annexation, which occurs periodically when deemed appropriate by the City Commission.

The City operates under the commission-manager form of government. Policy-making and legislative authority are vested in the City Commission (Commission) consisting of the Mayor and four commissioners. The Commission is responsible, among other things, for passing ordinances, adopting the budget, appointing committees, and hiring both the City Manager and Attorney. The City Manager is responsible for carrying out the policies and ordinances of the Commission, for overseeing the day-to-day operations of the City, and for appointing the heads of various departments. The Commission is elected on a non-partisan basis. Commission members serve three-year staggered terms, with two commission seats or the mayor’s seat up for election each year. The mayor and commissioners are elected at large.

The City provides a full range of services, including police and fire protection; the construction and maintenance of streets, sidewalks and infrastructure; engineering;

planning and community development; code compliance; general administration and support services; and recreational activities and cultural events. In addition, the City operates two enterprises: water and sewer service and electric service. The City has also contracted with a private firm to provide solid waste collection services.

The annual budget serves as the foundation of the City’s financial planning and control.

Departments are required to submit requests for appropriations including any new employee positions and capital projects to the Office of Management and Budget, which uses those requests as the starting point for developing a proposed budget. With the oversight of City Management and involvement of the Finance Department, a proposed budget and five year capital improvement plan is prepared and presented to the City Commission by the City Manager in July.

The Mayor and City Commissioners submit their thoughts on adjustments they would like to see made to the proposed budget in August. City Management and staff summarize these suggestions and add analysis of the operational impact, if any, of each suggestion. At a City Commission meeting, the Commission discusses each suggestion and reaches consensus on each item. Staff incorporates all approved suggestions in the budget the Commission will vote on in September.

The Commission is required to hold two public hearings on the budget and millage rate in September and adopt a final budget and millage rate by no later than September 30, the close of the City’s fiscal year.

The appropriated budget is prepared by fund. Transfers between accounts within the same fund may be made with City Manager approval. Transfers between funds and adjustments that increase the overall budget of a fund require approval of the City Commission. Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated budget has been adopted. For the General Fund and other budgeted major special revenue funds (Community Redevelopment Agency), this comparison is presented as required supplemental information. For nonmajor governmental funds, this comparison is presented in the combining financial statements.

Budgetary and Internal Accounting Controls

The budget is an integral part of the financial accounting system. The City proposes an annual budget for all departments, which must be approved by the City Commission.

Encumbrances are recorded for all significant expenditures at the time a purchase commitment is made. Line item expenditure reports are accessible to all departments and include: budgeted amounts, actual expenditures, encumbered amounts, and budget balances remaining. These reports are reviewed by each department where primary responsibility is placed.

The Finance Department monitors all financial activity on an ongoing basis. Quarterly reports summarizing the City’s financial activities are prepared for the City Commission.

On an annual basis, the City produces a report card updating its performance in key metrics as a communication outreach to the City Commission and public. The report is organized to assess progress in achieving the following objectives:

1. Exceptional quality of life

2. Intelligent growth & development

3. Fiscal stewardship

4. Public health & safety

5. Investment in public assets & infrastructure

Factors Affecting Financial Condition

The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City operates.

Local economy.

Winter Park is well positioned in the middle of a well-connected and diverse economy just northeast of the City of Orlando and 25 miles from Disney World. The largest employers within Winter Park are AdventHealth Winter Park, Orange County Public Schools, Rollins College, City of Winter Park, and Publix. Yet, Winter Park’s economy is not overly dependent on any one employer as the total employed by the five largest employers represents less than thirty percent of the total workforce in Winter Park.

The following table includes trend information on some key data:

2020 2021 2022 2023 2024 Taxable value of property (in thousands) $ 6,156,327 $ 6,619,273 $ 6,963,078 $ 7,628,259 $ 8,453,378

Population 30,630 30,019 30,021 29,795 30,647

Unemployment rate for Orange County 7.2% 4.0% 4.1% 3.8% 2.9%

Half-cent sales tax revenues $ 3,937,816 $ 4,425,214 $ 5,798,265 $ 5,899,575 $ 5,756,087

Building permit revenues $ 2,563,522 $ 3,136,325 $ 3,238,382 $ 2,495,222 $ 2,678,981

The taxable value of property increased again in fiscal year 2024. Property tax valuations are generally a lagging indicator of the health of the economy as January 1 valuations are the basis for tax revenues for the fiscal year beginning the following October 1. The City has held its operating millage rate at 4.0923 since fiscal year 2009.

Reserves Policies

The City has adopted the following policies regarding reserves:

Unassigned General Fund balance - The City's General Fund reserve goal is for Unassigned General Fund Balance to equal 30% of expenditures and transfers out for expenditures reported in other funds. Once the Unassigned General Fund Balance exceeds 30% of expenditures and transfers out for expenditures reported in other funds, the amount in excess of 30% may be used at the discretion of the City Commission to fund any nonrecurring cost such as a capital project contained in the Five Year Capital Improvement Plan. Ten percent each of any increase in Unassigned

General Fund Balance will be designated for the acquisition of land for parks and the acquisition and installation of public art.

Working capital for utility enterprise funds - The City will maintain working capital (current assets minus current liabilities) for utility enterprise funds equal to a minimum of 45 days of operating expenses, excluding amortization.

Utility enterprise fund transfers - Utility enterprise fund transfers to the General Fund will be governed by ordinances.

Debt service reserve accounts - The City will maintain debt service reserve accounts as required by its bond covenants.

One-time revenue sources - One-time revenue sources such as proceeds from the sale of an asset will not be used to fund on-going operating costs.

Major Initiatives

Seven Oaks Park - Funding for this new park at Orange Avenue and Denning Drive came from the City's allocation of American Rescue Plan Act dollars. The grand opening of this 2.4 acre park was held in February 2025. The new park features passive and active amenities including lush garden zones, shade trellises, open spaces, public parking, and safe pathways and connections. Other elements include day and evening amenities, pop-up events, play areas, variety of seating and public restrooms.

West Meadow Restroom and Pavilion - This project will provide restrooms in the City Business District and will include an attached pavilion that will greatly enhance the experience of the Farmers' Market in the West Meadow and provide a needed amenity to serve visitors to the downtown.

Undergrounding Power Lines City-Wide - Placing overhead power lines underground continues to be a major priority of the City with a goal of completing five miles of undergrounding each year. This effort is being funded by current operating revenues of the electric utility. Currently, approximately 81% of the system is underground.

Fire Training Facility - In 2023, property was contributed to the City which will be used to add a new fire training facility off Wymore Road. Groundbreaking for construction of the new facility is expected to begin in fiscal year 2025.

Park Avenue Refresh Project - Park Avenue is the epicenter of Winter Park's culture, charm and economic vitality. The last Park Avenue streetscape restoration occurred between 1996 and 1999. Now, almost 30 years later, the City's main street is undergoing a master planning conceptual design to provide for today and tomorrow's needs. The overall goals of the project are to 1) maintain charm and warm, inviting environment, 2) enhance safety and aesthetics, 3) strengthen infrastructure (electric, smart city, and irrigation) and 4) provide consistent look for hardscape, landscape and architectural elements along the Avenue. Construction is expected to start summer of 2025.

Swoope Parks Facility Building - This 6,000 SF facility located next to the WP9 Golf Course will provide vehicle storage and maintenance space for all downtown parks and green areas.

Expansion of the Community Redevelopment Area (CRA) - On October 29, 2024, Orange County approved expansion of the boundaries of the CRA down West Fairbanks Avenue, extension of the CRA's operational period for 10 years from 2027 to 2037, and an update to the CRA Plan.

Winter Park Playhouse - Orange County has approved $8 million in Tourist Development Tax dollars which will allow the City to acquire the Winter Park Playhouse property and renovate the facilities for continued operations as a musical theater. The renovations will expand the seating from 123 seats to 185 seats, a 50% increase in capacity and enable 10,000+ more residents and guests to attend the popular shows.

The Playhouse is the only professional musical theater in Central Florida and entertains over 30,000 people annually. They are an important player in the City's arts and culture scene.

Long-term financial planning

The City has prepared a ten year pro-forma forecast for the General Fund, Community Redevelopment Agency, Water and Sewer, and Electric Services Funds as well as a five year Capital Improvements Plan. These schedules provide information to assess the City’s long-term financial condition in comparison to the short-term focus of the Annual Report and budget. This data is included in the City’s annual budget document which is available at www.cityofwinterpark.org. This document projects the City’s major capital expenditures and related operating expenditures in addition to projecting regular operating expenditures, recurring capital expenditures and revenue.

In addition, the City has developed a long-term 5- and 25-year strategic investment plan to balance the short- and long-term goals of the city. As part of that long-range planning, the City has funded traffic and connectivity designs and connected those plans with grant writing efforts to secure funding.

Awards and Acknowledgments

The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its annual comprehensive financial report for the fiscal year ended September 30, 2023. This was the forty-fourth consecutive year that the City has received this prestigious award. In http://www.cityofwinterpark.org order to be awarded a Certificate of Achievement, the City published an easily readable and efficiently organized Annual Report. This report satisfied both GAAP and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current Annual Report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.

In addition, the City also received the GFOA’s Distinguished Budget Presentation Award for its annual budget document for the fiscal year beginning October 1, 2023. In order to qualify for the Distinguished Budget Presentation Award, the City’s budget document was judged to be proficient in several categories, including as a policy document, a financial plan, an operations guide and a communications device.

The in-house preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance Department. The significant amount of year-end closing procedures and report preparation could not have been accomplished without much hard work and personal sacrifice. Special thanks must be given to Karen Cockerham, Sandro Porcella, and Yahayra Mejias for their dedication in the creation and compilation of this document.

Other City departments, although not extensively involved in year-end audit activities, contributed significantly by ensuring the accuracy and integrity of accounting information compiled throughout the year. Without their diligence, the work of the Finance Department would have been considerably more difficult.

Appreciation must also be expressed to the City's auditors, Forvis Mazars, LLP, whose suggestions and attention to detail enhanced the quality of this report.

Last, but certainly not least, special appreciation must be expressed to the City’s elected officials for their unyielding support and steadfast commitment to maintaining the financial integrity of the City. With their continued leadership, the City can look forward to a secure financial future.

Respectfully submitted, Randy B. Knight, CPA Charles W. Hamil, III, CPA City Manager Finance Director

CERTIFICATE OF ACHIEVEMENT

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Winter Park for its Annual Comprehensive Financial Report for the fiscal year ended September 30, 2023. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reporting.

In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. The City of Winter Park has received a Certificate of Achievement for the last forty-four consecutive years (fiscal years 1980 - 2023). We believe our current report continues to conform to the Certificate of Achievement Program requirements, and we are submitting it to GFOA.

Government Finance Officers Association

Certificate of Achievement for Excellence in Financial Reporting

Presented to

City of Winter Park Florida

For its Annual Comprehensive Financial Report

For the Fiscal Year Ended

September 30, 2023

Executive Director/CEO

FINANCIAL SECTION

INDEPENDENT AUDITOR’S REPORT

MANAGEMENT’S DISCUSSION AND ANALYSIS

(UNAUDITED)

BASIC FINANCIAL STATEMENTS

(GOVERNMENT-WIDE FINANCIAL STATEMENTS)

(FUND FINANCIAL STATEMENTS)

NOTES TO FINANCIAL STATEMENTS

REQUIRED SUPPLEMENTAL INFORMATION

(UNAUDITED)

COMBINING AND INDIVIDUAL FUND STATEMENTS

AND SCHEDULES

Forvis Mazars, LLP is an independent member of Forvis Mazars Global Limited

Independent Auditor’s Report

The Honorable Mayor and Members of the City Commission City of Winter Park, Florida

Report on the Audit of the Financial Statements

Opinions We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Winter Park, Florida (the “City”) as of and for the year ended September 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, as listed in the table of contents.

In our opinion, the accompanying 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, 2024, 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.

Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (“GAAS”) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the “Auditor’s Responsibilities for the Audit of the Financial Statements” section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management 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, and for 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.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for 12 months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

The Honorable Mayor and Members of the City Commission

Auditor’s Responsibility for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:

• Exercise professional judgment and maintain professional skepticism throughout the audit.

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

• Obtain an understanding of internal control relevant to the audit 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, no such opinion is expressed.

• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during that audit.

Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis and Required Supplemental Information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 GAAS, 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.

The Honorable Mayor and Members of the City Commission

Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements as a whole. The combining and individual fund statements and schedules are presented for purposes of additional analysis and are not a required part of the financial statements. Such information is the responsibility of management and was derived from, and relates directly to, the underlying accounting and other records used to prepare the financial statements.

The 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 GAAS.

In our opinion, the combining and individual fund statements and schedules are fairly stated, in all material respects, in relation to the financial statements as a whole.

Other Information Management is responsible for the other information included in the Annual Comprehensive Financial Report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated April 3, 2025, 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.

Orlando, Florida April 3, 2025

Management’s Discussion and Analysis (Unaudited)

As management of the City of Winter Park (the “City”), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended September 30, 2024. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal.

Financial Highlights

The assets and deferred outflows of the City exceeded its liabilities and deferred inflows at the close of the most recent fiscal year by $342,749,461 (net position). Of this amount, $52,881,425 (unrestricted net position) may be used to meet the City’s ongoing obligations to its citizens and creditors.

The City’s total net position increased by $27,307,790 (or 8.66%). The governmental net position increased by $12,554,121 (or 8.94%) and the business-type net position increased by $14,753,669 (or 8.43%).

At the end of the current fiscal year, unassigned fund balance for the General Fund was $21,795,053, or 28.83% of total expenditures and transfers out for recurring operational costs reported in other funds as compared to 29.90% in the prior year. Unassigned fund balance in the General Fund increased by $1,198,014 in fiscal year 2024. The most significant reasons were recovery of prior years unrealized losses in the City's fixed income investment portfolio as investments mature, increasing property tax revenues as a result of increasing valuations, and half-cent sales tax, water and electric utility taxes, and fines and forfeitures revenues all had significant positive budget variances.

Overview of the Financial Statements

This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business.

The Statement of Net Position presents information on all of the City’s assets and deferred outflows and liabilities and deferred inflows, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).

Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, information technology, financial services, communications, planning and zoning, building and permitting services, community redevelopment agency, public works and transportation, natural resources and sustainability, police, fire rescue, parks and recreation, and cultural and community services. The business-type activities of the City include water and sewer and electric services.

Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements.

However, unlike the government-wide financial statements, governmental financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City maintains sixteen individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General Fund, Community Redevelopment Fund, COVID-19 Fund, and Capital Projects Fund, which are considered to be major funds. Data from the other twelve governmental funds are combined into a single, aggregated presentation.

Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report.

The City adopts an annual appropriated budget for its General Fund and certain Special Revenue Funds. Budgetary comparison schedules have been provided for the General Fund and each major Special Revenue Fund that adopts a budget to demonstrate compliance with the budget and are presented as required supplemental information. Budgetary comparisons for nonmajor special revenue funds are presented in the combining statements.

Proprietary funds. The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its water and sewer and electric services. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for its fleet maintenance operations, vehicle replacement funding, and insurance. Because services accounted for in internal service funds predominately benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements.

Proprietary fund financial statements provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Water and Sewer Fund and Electric Services Fund. The Water and Sewer Fund and Electric Services Fund are considered to be major funds of the City. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report.

Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds are not reflected in the government-wide financial statements because the resources of these funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.

Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning budgetary comparisons and the City’s progress in funding its obligation to provide pension benefits to its employees and Other Postemployment Benefit (OPEB) obligations.

The combining statements referred to earlier in connection with nonmajor governmental and internal service funds are presented immediately following the required supplementary information.

Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $342,749,461 at the close of the most recent fiscal year.

The largest portion of the City’s net position (72.40%) reflects its investment in capital assets (e.g., land, buildings, improvements other than buildings, machinery and equipment) and other assets (goodwill, sewer capacity rights, etc.), less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens;

consequently, these assets are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

Net Position Governmental Activities Business-type Activities Total 2024 2023 2024 2023 2024 2023

Current assets $ 88,012,051 $ 72,135,663 $ 72,843,345 $ 68,984,196 $ 160,855,396 $ 141,119,859 Other assets 500 500 274,000 274,000 274,500 274,500 Capital assets 148,602,355 145,464,211 209,888,505 204,047,021 358,490,860 349,511,232

Total assets 236,614,906 217,600,374 283,005,850 273,305,217 519,620,756 490,905,591 Deferred outflows of resources 22,411,573 26,985,842 5,338,258 6,222,112 27,749,831 33,207,954 Current and other liabilities 14,423,252 16,828,885 11,654,939 10,551,591 26,078,191 27,380,476 Long-term liabilities 74,195,070 75,217,581 85,044,957 91,872,378 159,240,027 167,089,959

Total liabilities 88,618,322 92,046,466 96,699,896 102,423,969 185,318,218 194,470,435 Deferred inflows of resources 17,396,963 12,082,677 1,905,945 2,118,762 19,302,908 14,201,439 Net position:

Net Investment in Capital Assets 116,245,051 110,203,698 131,903,508 119,875,352 248,148,559 230,079,050 Restricted 22,096,891 17,457,729 19,622,586 19,170,211 41,719,477 36,627,940 Unrestricted 14,669,252 12,795,646 38,212,173 35,939,035 52,881,425 48,734,681

Total net position $ 153,011,194 $ 140,457,073 $ 189,738,267 $ 174,984,598 $ 342,749,461 $ 315,441,671

An additional portion of the City’s net position (12.17%) represents resources that are subject to external restrictions on how they may be used. The remaining 15.43% is unrestricted and may be used to meet the government’s ongoing obligations to its citizens and creditors.

Governmental activities. Current assets of governmental activities increased by $15,876,388. The single largest increase was $4,746,446 in the Community Redevelopment Fund due to unspent funds allocated to various capital projects. Additionally, in August 2024 the City entered into a long-term lease of the former Winter Park Library facility to Blue Bamboo for use as an entertainment venue. The lease receivable from this lease at September 30, 2024 was $6,952,021. Cash in the General Fund increased by $3,604,155 as a result of favorable revenue budget variances totaling $3,533,065.

Capital assets increased by $3,138,144. Some of the largest increases included $3,286,639 for improvements to Seven Oaks Park and $2,564,569 for the purchase of replacement vehicles.

Depreciation expense partially offset these additions.

Pension related deferred outflows decreased by $4,347,654 based on pension actuary reports.

Deferred inflows of resources related to the Blue Bamboo lease referred to above were $6,942,095 at September 30, 2024.

Business-type activities. Current assets of business-type activities increased by $3,859,149.

The most significant reason for this was an increase of $4,020,292 in electric inventory.

Transformers, conduit and other supplies for the undergrounding of power lines program had been on back order for an extended period of time. Significant orders were received in fiscal year 2024.

Capital assets increased by $5,841,484. The most significant increases were $9,557,580 for undergrounding power lines and $1,075,514 for water and sewer main upgrades and extensions. Depreciation expense partially offset these additions.

Long-term liabilities were reduced through principal payments on debt.

The changes in net position displayed below shows the governmental and business-type activities during the fiscal year.

Changes in Net Position Governmental Activities Business-type Activities Total

2024 2023 2024 2023 2024 2023 Revenues:

Program revenues:

Charges for services $ 28,212,510 $ 24,767,141 $ 85,507,914 $ 84,071,885 $ 113,720,424 $ 108,839,026 Operating grants and contributions 7,117,620 4,972,533 - - 7,117,620 4,972,533 Capital grants and contributions 3,223,782 2,663,105 433,712 696,960 3,657,494 3,360,065 General revenues:

Property taxes 35,784,031 32,365,312 - - 35,784,031 32,365,312 Franchise fees 651,705 682,947 - - 651,705 682,947 Utility taxes 7,775,483 7,533,817 - - 7,775,483 7,533,817 Intergovernmental revenues 10,966,651 10,830,372 - - 10,966,651 10,830,372 Investment earnings 5,247,004 1,852,149 2,256,541 943,077 7,503,545 2,795,226 Other 1,129,931 2,731,166 41,646 391,190 1,171,577 3,122,356

Total revenues 100,108,717 88,398,542 88,239,813 86,103,112 188,348,530 174,501,654 Expenses:

General administration 2,047,590 2,772,553 - - 2,047,590 2,772,553 Information technology 1,697,815 1,798,514 - - 1,697,815 1,798,514 Finance 586,573 622,265 - - 586,573 622,265 Communications 448,161 434,014 - - 448,161 434,014 Planning and zoning 1,823,409 1,854,960 - - 1,823,409 1,854,960 Building and permitting 2,405,970 2,305,014 - - 2,405,970 2,305,014 Community redevelopment agency 3,877,728 2,012,643 - - 3,877,728 2,012,643 Public works and transportation 19,404,006 17,446,493 - - 19,404,006 17,446,493 Natural resources and sustainability 2,637,277 1,649,842 - - 2,637,277 1,649,842 Police 20,791,317 18,336,112 - - 20,791,317 18,336,112 Fire rescue 18,663,957 16,230,594 - - 18,663,957 16,230,594 Parks and recreation 15,924,145 15,324,465 - - 15,924,145 15,324,465 Cultural and community services 2,306,700 2,190,000 - - 2,306,700 2,190,000 Interest and other charges 788,352 963,784 - - 788,352 963,784 Water and sewer - - 30,934,922 28,879,822 30,934,922 28,879,822 Electric services - - 36,702,818 37,789,376 36,702,818 37,789,376

Total expenses 93,403,000 83,941,253 67,637,740 66,669,198 161,040,740 150,610,451 Change in net position before transfers 6,705,717 4,457,289 20,602,073 19,433,914 27,307,790 23,891,203 Transfers 5,848,404 6,195,012 (5,848,404) (6,195,012) - - Change in net position…