Popular Annual Financial Report
Fiscal Year 2018

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 a PAFR?

The financial information presented in the Popular Annual Financial Report (PAFR) is a summarized form of the city’s award-winning Comprehensive Annual Financial Report (CAFR) and is not intended to replace the CAFR. The PAFR is unaudited and not presented in Generally Accepted Accounting Principles (GAAP) format. The PAFR does not contain the city’s Component Units.

Should you want to review our city’s CAFR, it is available to be viewed and downloaded at cityoforlando.net/obfs/cafr.

Letter from the Mayor

On behalf of the Orlando Council and staff, it is my pleasure to present to you the City of Orlando’s Popular Annual Financial Report (PAFR) for the fiscal year ended September 30, 2018.

Accountability and responsible stewardship are key components of the financial reporting process. This PAFR 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 at orlando.gov/Our-Government/Departments-Offices/OBFS.

Sincerely,

Buddy Dyer

Mayor, City of Orlando

Where do Property Taxes Go? (Example home)

This table shows what percentage of tax revenue the city receives annually from a median priced home. Using this tax revenue, the city is able to provide several services to residents. The daily cost of city taxes (approximately $3.50) for each homeowner turns out to be less than the cost of a specialty coffee drink.

House
Assessed
Value
Exemption Tax
Value
Taxing
Entity
Millage
Rate
Taxes Tax
Percentage
$241,800 $25,000 $216,800 Public Schools 7.4700 $1,619.50 42%
$241,800 $50,000 $191,800 City of Orlando 6.6500 $1,275.47 33%
$241,800 $50,000 $191,800 Orange County 4.4347 $850.58 22%
$241,800 $50,000 $191,800 Library 0.3748 $71.89 2%
$241,800 $50,000 $191,800 St. Johns Water Mgmt. 0.2724 $52.25 1%
      Total:   $3,869.69  
pie chart outlining where property taxes are allotted
 

Capital Budget

The first year of the five-year capital improvement program is referred to as the Capital Budget. The fiscal year 2018 Capital Budget includes 100 projects totaling $94.38 million. The following chart displays the Capital Budget by function.

Function FY 2017/18
Economic Development $6,892,046
General Government $1,560,000
Public Facilities $1,250,000
Public Safety $2,432,621
Recreation and Culture $5,578,391
Stormwater $3,910,000
Transportation $21,974,000
Water Reclamation $50,784,000
Total $94,381,058
capital budget expenditures
 

Condensed Statements

Condensed Statement of Net Position

This table represents the Government-wide assets, liabilities, and deferred inflows and outflows. The city’s total assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $1,787,491,473 (net position) in fiscal year 2018.

  2018 2017 2016 2015 2014 Trend
Current and
Other Assets
$1,245,721,481 $1,290,462,653 $1,184,007,948 $1,107,467,839 $1,217,210,820
Trend-1.png
 
Capital Assets $2,284,524,121 $2,220,006,507 $2,153,803,022 $2,126,723,825 $2,048,162,431  
Trend-2.png
Deferred
Outflows of
Resources
$200,965,761 $135,659,541 $138,871,893 $50,703,038 $1,954,084  
Trend-3.png
Total Assets
and Deferred
Outflows
$3,731,211,363 $3,646,128,701 $3,476,682,863 $3,284,896,717 $3,267,329,349  
Trend-4.png
Current
Liabilities
$298,869,637 $277,940,857 $221,897,361 $229,210,738 $330,120,207  
Trend-5.png
Long-Term
Liabilities
$1,611,898,548 $1,342,926,903 $1,611,306,442 $1,526,558,542 $1,327,253,330  
Trend-6.png
Deferred
Inflows of
Resources
$32,951,705 $8,721,010 $9,901,777 $16,355,663 -
Trend-7.png
 
Total Liabilities
and Deferred
Inflows
$1,943,719,890 $1,629,588,770 $1,843,105,580 $1,772,124,943 $1,657,373,537  
Trend-8.png
Net Position $1,787,491,473 $2,016,539,931 $1,633,577,283 $1,512,769,759 $1,609,953,798  
Trend-9.png

Condensed Statement of Activities

This table represents the Government-wide revenues and expenses. The city’s revenues exceeded its expenses by $55,175,572 in fiscal year 2018.

  2018 2017 2016 2015 2014 Trend
Revenues $897,352,585 $1,131,628,201 $840,152,837 $688,808,006 $748,832,812  
Trend-10.png
Expenses/
Expenditures
$842,177,013 $748,665,553 $719,345,313 $663,566,697 $641,359,126
Trend-11.png
 
Change in Net
Position
$55,175,572 $382,962,648 $120,807,524 $25,241,309 $107,473,686  
Trend-12.png
Net Position - 
Beginning
$2,016,539,931 $1,633,577,283 $1,512,769,759 $1,609,953,798 $1,502,480,112  
Trend-13.png
Prior Period
Adjustment
$(284,224,030) - - $(122,425,348) -  
Trend-14.png
Net Position - 
Ending
$1,787,491,473 $2,016,539,931 $1,633,577,283 $1,512,769,759 $1,609,953,798  
Trend-15.png

General Fund Revenues and Expenditures

This information highlights the fiscal year 2018 actual results specifically for the General Fund, which is the main operating fund of the city. Property taxes are the largest source of revenue totaling 37 cents of every dollar received. Public Safety (Fire and Police) accounts for the largest area of General Fund spending at 60 cents, followed by outlays for Families, Parks and Recreation at 8 cents.

  2018 2017 Change
Revenues $482,920,210 $447,204,761 $35,715,449
Expenditures $443,934,727 $422,295,405 $21,639,322
Transfers In (Out) $(35,606,059) $(17,370,631) $(18,235,428)
Net Change in Fund Balance $3,379,424 $7,538,725 $(4,159,301)
expense by department
revenue by source
 
 

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, S&P and Fitch. High bond ratings indicate that the city is financially strong and able to repay its debt.

Governmental Activities

Fund Purpose of Issue Payment Source Issued Outstanding
Community
Redevelopment Agency
Capital Projects and Dr.
Phillips Center for 
Performing Arts
Tax Increment Revenues $194,500,000 $166,261,816
General SunRail Non-advalorem Revenues $14,874,867 $4,944,028
Capital Improvement Public Safety and 
Capital Projects
Non-advalorem Revenues $294,798,000 $236,744,000
Total Government
Debt
    $504,172,867 $407,949,844

 

Business Type Activities

Fund Purpose of Issue Payment Source Issued Outstanding
Parking Parking Garage
Construction
Parking Revenues $56,135,00 $46,850,00
Orlando Venues Community Venues State Sales Tax and 
Tourist Development
Tax
$449,710,000 $364,530,000
Water Reclamation Water Reclamation
Projects
Water Reclamation
Revenues
$136,140,358 $87,083,069
Total Business
Type Debt
    $641,985,358 $498,463,069
TotalCity Debt     $1,146,158,225 $906,412,913

Employee/Population Ratio Comparison

This ratio measures the number of city employees to every 1,000 residents. The table below shows that Orlando is able to successfully serve residents with fewer employees than both Tallahassee and Fort Lauderdale.

Municipality Population
Estimate
Total City
Employees
City Employees per
1,000 Population
Orlando 285,099 3,346 11.74
Tampa 385,430 4,480 11.62
Tallahassee 197,735 2,903 14.68
Fort Lauderdale 179,063 2,809 15.69

Top Employers

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

Employer Type of Business Number of 
Employees
Percentage of Total
MSA Employment
Walt Disney World Leisure and Hospitality 74,000 5.70%
Orange County Public Schools Government 24,629 1.90%
Universal Orlando Resort Leisure and Hospitality 21,000 1.62%
Adventist Health System
(now AdventHealth)
Healthcare 20,413 1.57%
Publix Supermarkets Inc. Service (Grocery) 19,783 1.52%
Orlando International Airport
(MCO)
Transportation 18,000 1.39%
Orlando Health Healthcare 16,828 1.30%
University of Central Florida Education 11,833 0.91%
Orange County Government Government 10,532 0.81%
Seminole County Public Schools Government 7,596 0.58%
Other Employers Various 1,073,878 82.70%
Total   1,298,492 100.00%

Glossary

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.

Capital Assets
Long-term investments in land, buildings, equipment, infrastructure or improvements.

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

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 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-wide
The city as a whole.

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.

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.

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

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

Tax Increment Revenues
Tax revenues on future gains in real estate value as result of improvements to the property and/or surrounding area.