Popular Annual Financial Report
Fiscal Year 2019

Introduction

The City of Orlando is a Florida municipal corporation, which was founded in 1875, and has an estimated population of 285,099 living within an area of approximately 110 square miles. The city is in the approximate center of the State of Florida and the four-county Orlando-Kissimmee-Sanford Metropolitan Statistical Area (MSA), which has an estimated population of 2.51 million. The city operates under a Charter adopted February 4, 1885, as amended. The city has a seven-member City Council comprised of the Mayor (elected at large) and six District Commissioners.

The city provides the full range of governmental services, including police and fire protection, street construction and maintenance, solid waste management, sewer services, parks, recreation and cultural services, planning and development services, a variety of transportation and public infrastructure programs, and other traditional support activities. Included in the city’s basic financial statements is the legally separate Downtown Development Board (DDB), which is reported separately (i.e., discretely presented). Although legally separate, because of the closeness of their relationship to the city, the Community Redevelopment Agency (CRA) and Downtown South Neighborhood Improvement District are reported as though they are part of the city (i.e., blended presentation).

What is an annual report to citizens?

This Annual Report to Citizens is Orlando’s version of a Popular Annual Financial Report. The Government Finance Officers Association (GFOA) recommends governments produce a Popular Annual Financial Report to provide a summarized overview of the City’s financial position in a simplified format for the benefit of citizens and other interested parties. The information presented is extracted from the City’s award-winning Comprehensive Annual Financial Report, which is a complete set of audited financial statements presented in conformity with Generally Accepted Accounting Principles (GAAP). The Annual Report to Citizens is unaudited and not presented in GAAP format. This is not intended to replace the Comprehensive Annual Financial Report. For those interested in more detail, the City of Orlando’s Comprehensive Annual Financial Report, the Popular Annual Financial Report, as well as other financial documents, are available at orlando.gov/financialdocuments. 

Achievements

The City of Orlando continues to be recognized for its financial reporting efforts. The City was awarded the Certificate for Excellence in Financial Reporting for its Fiscal Year 2018 Comprehensive Annual Financial Report. This is the 41^st consecutive year it has received the distinguished award. The City of Orlando was also awarded the Award for Outstanding Achievement in Popular Annual Financial Reporting for its Popular Annual Financial Report for the fiscal year ended September 30, 2018.  

Letter from the Mayor

On behalf of the Orlando City Council and staff, it is my pleasure to present to you the City of Orlando’s Annual Report to Citizens (Report) for the fiscal year ended September 30, 2019. 

Accountability and responsible stewardship are key components of the financial reporting process. This Report will provide you with a snap shot of the city’s financial activities and achievements from the past year and is an illustration of our continued commitment to financial transparency. 

We know that a strong partnership with you, our residents, is the best way to work through challenges and realize opportunity. With that in mind, as you review this report, please share any recommendations, concerns or questions you may have with our Office of Business and Financial Services. 

Sincerely,

Buddy Dyer

Mayor, City of Orlando

Orlando Facts - Did You Know?

281,800 population of Orlando	$265,000 median home price, Orlando MSA
1,968,530 attendees across a total of 289 events in 2019 at Orlando's Amway Center, Camping World Stadium and Tinker Field combined	10th busiest airport in the nation (Orlando International Airport)
$500,000 annual city cost savings from installing LED streetlights	5th best city in the U.S. for an active lifestyle. Orlando has 40 miles of bike paths, 100 parks and 21 neighborhood centers
$45,436 median household income	2.7% unemployment rate
10 Main Street districts	75 million numbers of visitors to the Orlando area, making it the #1 most visited destination in the United States
1,981 people in Central Florida who moved into permanent housing from being homeless (in the 12-month period ended 9/20/2019)	69,525 Fall 2019 enrollment at University of Central Florida
6 - number of Mayor's key priorities for 2020: Create a city for everyone, create high quality jobs, end homelessness, become one of the most sustainable cities in America, keep our communities safe, provide mobility and transportation options

Property Tax Revenue

Ad valorem property taxes are the city’s largest source of revenue. The table below shows the total amount of tax collected in the last 5 years. Although the city’s millage rate has remained the same, assessed property values have increased, resulting in more property tax revenue being collected.

City of Orlando Millage Rates Last Five Years

Ad Valorem Property Taxes A tax based on the assessed value of an item, such as real estate or personal property.

Non-ad Valorem Revenues Revenues not including property tax, such as the utilities service tax.

Where do Property Taxes Go?

The example below shows the total amount of property tax a resident would pay on a home with an assessed value of $265,000, and where those tax dollars go.

Capital Improvement Program

What is it and Why Do We Have One?

City government provides needed and desired urban services to the public. In order to provide these services, the city must furnish and maintain capital facilities and equipment such as sewers, roads, and parks. The capital improvement program is a proposed schedule for the expenditure of funds to acquire or construct these needed improvements over the next five-year period. It represents a comprehensive and direct statement of the physical development policies of the city. The program has major significance in that it touches the lives of each city resident and visitor through the provision of health, safety, transportation, recreation and other services.

The following chart illustrates the FY2018/2019 Capital Budget by type of service. It includes 100 projects totaling $79,567,632.

Capital Budget

Funds budgeted to purchase or construct buildings, equipment, infrastructure or improvements.

Condensed Financial Statements

The city’s statement of net position is a snapshot of its financial position as of September 30, 2019. It indicates that what the city owns (Total Assets and Deferred Outflows) exceeded what it owes (Total Liabilities and Deferred Inflows) by $1,912,714,605 (Net Position). This is an increase of $125,223,132 over 2018. The net position increase can be attributed to revenues which exceeded expenses during the year. Most of the revenue increase came from investment earnings, Ad valorem taxes (property tax and business personal property tax), and charges for services. Revenues and Expenses are shown on the city’s statement of activities. See glossary for definitions of key terms.

Condensed Statement of Net Position

Condensed Statement of Activities

General Fund Revenues and Expenditures

The city is required to keep track of its finances using fund accounting. Fund accounting divides money into buckets according to source and intended use. The largest bucket is the General Fund; most of the city’s revenues and expenses are accounted for here. General Fund revenues include property tax, licenses and permit fees, utility taxes, and state taxes and contributions such as revenue sharing and service charges. General Fund expenditures include police and fire departments, parks and recreation, business and financial services, transportation, economic development, and public works. The table below shows General Fund revenues and expenses for the most recent three year period. Also shown is a break down of General Fund revenues by source, and expenses by department for the fiscal year ended September 30, 2019. Revenues were $48,194,870 greater in 2019 as compared to 2018. A large part of the increase was due to an increase in the value of taxable property, which increased the amount of property tax collected. Public Safety (Police and Fire Departments) was the largest cost for the General Fund, accounting for 60% of total expenses in 2019.

 

 

Condensed Statement of Outstanding Debt

The City of Orlando primarily issues bonds to pay for large and long-lived capital assets such as parks, roads, waste water plants, and buildings. Sometimes existing bonds are refunded with new bonds to achieve savings on interest costs.

There are multiple benefits to paying for large and long-lived capital assets with debt. One benefit is that future users of the assets will bear some of the cost through taxes or other charges that help pay the debt over time.

The city consistently achieves some of the highest bond ratings possible from the major ratings agencies Moody’s, Standard & Poor's and Fitch. High bond ratings indicate that the city is financially strong and able to repay its debt.

Governmental Activities

Business Type Activities

Governmental Activities The city's basic services such as Police, Fire, Public Works and Families, Parks and Recreation which are mostly funded by property tax, sales tax and franchise fees.

Bond Rating A measure of financial strength that provides the ability to obtain low interest rates.

Business Type Activities City services that charge users based on the cost of providing the service.

Tourist Development Tax (TDT) A tax on the amount paid by guests for short-term accommodation (less than six months). This 6% tax is collected by Orange County and Florida Statutes require the funds to be used for designated tourism-related expenditures. The county contributes TDT revenue to the City of Orlando to support debt service payments on the outstanding TDT revenue bonds.

Government-wide The city as a whole.

Selected Statistics

Employment by Industry in Orlando MSA
Including Lake, Orange, Osceola and Seminole Counties (Percent of Local Economy)

Principal Employers

Source: Orlando Economic Partnership

Note: Includes the four counties in the Orlando-Kissimmee-Sanford Metropolitan Statistical Area (MSA), Orange, Seminole, Osceola and Lake.

Glossary

Current and Other Assets
Assets such as cash, investments, receivables and inventory that can be converted to cash within one year.

Current Liabilities
Debts that can be paid off in one year or less, such as accounts payable, accrued payroll and compensated absences.

Deferred Inflows of Resources
An acquisition of net position by the government that is applicable to a future reporting period.

Deferred Outflows of Resources
A consumption of net position by the government that is applicable to a future reporting period.

Expenses/Expenditures
Money spent or costs incurred through the city’s operations.

Fund
A self-balancing set of accounts which are segregated for specific activities or objectives. Funds are often referred to as "buckets."

Fund Balance
The difference between assets and deferred outflow of resources and liabilities and deferred inflow of resources of a fund.

General Fund
The chief operating fund of the city.

Government Finance Officers Association (GFOA)
Organization which represents public finance officials and promotes excellence in public finance by providing best practice guidance, recognition programs, research and training.

Long-Term Liabilities
Represents mainly debt obligations of the city.

Net Position
The difference between assets and deferred outflow of resources and liabilities and deferred inflow of resources for the city as a whole.

Prior Period Adjustments
The correction of an error or retroactive application of a new accounting rule.

Revenues
Income from charges to individuals who purchase, use, or benefit from goods or services.