2024 Popular Annual Financial Report

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, 2024.

Accountability and responsible stewardship are key components of the financial reporting process. This Report will provide you with a snapshot 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 at orlando.gov/obfs.

Sincerely,

Buddy Dyer

Mayor, City of Orlando

Orlando Facts - Did You Know?

	69,818 Number of students enrolled in The University of Central Florida in Orlando		3.4% Unemployment rate for Orlando MSA as of September 2024
	1st Best city for staycations		12 Main Street Districts
	58.4 Million Number of Passengers traveling through Orlando International Airport this year.		5,265 People in Orlando MSA who moved into permanent housing from being homeless (In the 12-month period ended 1/31/2025)
	Orlando Achieved Leed Cities Gold Certification for its citywide sustainability and resiliency efforts.		416 Miles of bike paths in Orlando
	Aa1/AA+/AAA Orlando's comparable rating for general obligation debt by rating agencies Moody's Investors Service, Standard & Poor's, and Fitch Ratings, respectively		605 Number of vendors registered in the city's Minority or Women Owned Enterprise System
	11 Mayor Priorities: 1. Community Trust and Equity Initiative 2. Caring for those experiencing homelessness 3. A city for everyone  4. Making it easier to do business 5. Accelerate Orlando 6. Public safety 7. Sustainability and Resiliency 8. Transportation 9. Access to quality housing 10. Providing opportunities for young residents 11. Investing in our neighborhoods		6 Professional Sports Teams that call Orlando home: Major League Teams: Orlando Magic (NBA) Orlando City SC (MLS) Orlando Pride (NWSL) Orlando Squeeze (Major League Pickleball) Minor League Teams: Orlando Solar Bears (ECHL Ice Hockey) Orlando Valkyries (Professional Volleyball Federation)

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 (dollars of tax per $1,000 of taxable value) 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 $380,000, and where those tax dollars go.

Capital Improvement Program

What is it and Why Do We Have One?

The city provides needed and desired government services to the public. In order to provide these services, the city must invest in the community by acquiring and constructing capital assets, such as buildings, infrastructure, roads, and parks. The capital improvement program is a road map, approved by City Council, which details and establishes the city’s capital investment priorities and policies over the next five fiscal years. The capital improvement program is of major significance to the city. The benefits derived from the projects intersect with and impact the lives of the city’s residents, businesses, and visitors through the provision of health, safety, transportation, recreation, cultural, and other services.

The following chart illustrates the FY2023/2024 Capital Budget by type of service.

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. It presents all of the city’s assets and deferred outflows and liabilities and deferred inflows. The difference between assets and deferred outflows and liabilities and deferred inflows is known as net position. The change in net position from year to year serves as an indicator of the results of the city’s operations and financial position. For the fiscal year ended September 30, 2024, the city’s net position is $2,741,851,723. This is an increase of $204,357,299 over Fiscal Year 2023. Revenues and expenses are presented in the 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 account for its finances using fund accounting. Fund accounting separates revenues and expenses into different funds or “buckets”, based on the source of the revenue and its intended use. The largest “bucket” and chief operating fund of the city is the General Fund. Most of the city’s revenues and expenses are accounted for here. General Fund revenues include property tax, licenses, permitting fees, utility taxes, state taxes, contributions such as revenue sharing, and service charges. General Fund expenses include police, fire, parks and recreation, business and financial services, transportation, economic development, and public works services. The table below provides a summary and comparison of General Fund revenues, expenses, transfers, and net change in fund balance. The charts present expenditures by department and revenues by source for the General Fund for the Fiscal Year ended September 30, 2024. Total revenues increased $66,343,632 compared to the same period last year. Property Tax was the largest source of revenue for the General Fund representing 43% of the total. Total expenditures increased by $52.1 million compared to the same period last year. Public Safety (Police and Fire services) was the largest expense for the General Fund, representing approximately 57% of total expenses.

Total General Fund revenues increased $66.3 million, or 9.9% compared to fiscal year 2023. Property Taxes increased by $35.0 million due to an increase in the taxable value from prior year. Investment income increased by $13.0 million, primarily the result of the City’s rate of return increasing from 3.9% in fiscal year 2023, to 6.7% in fiscal year 2024. General Fund expenditures increased by $52.1 million or 9.2% over fiscal year 2023. Most of this increase is due to an increase in personnel costs across all General Fund departments. This was followed by an increase in other contractual services in the Family Parks and Recreation, Housing and Community Development, and Police Departments. The majority of the remaining increase was in repairs in maintenance in the Information Technology Division and a slight increase to repairs and maintenance of vehicles across several departments.

    

 

  

 

  

 

 

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, water treatment 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, stable and able to repay its debt, which generally results in lower interest costs. 

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

Demographics and Economic Statistics
(Last 10 Fiscal Years)

Principal Employers

Source: Orlando Business Journal and Metro Orlando Economic Development Commission.

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 and accrued payroll.

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.

Millage Rate
Dollars of tax per $1,000 of taxable value.

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 taxes and charges to individuals who purchase, use, or benefit from goods or services.

Subscription-Based Information Technology Arrangement (SBITA)
A contract that conveys control of the right to use another party’s information technology software as specified in a contract, for a period of time. A new governmental accounting standard in effect for fiscal year 2023 requires these to be recorded as an asset and a liability rather than as an expenditure of the period as in prior years.