Descripción de funciones y competencias laborales

Business-Type Activities. Business-type activities increased the City of Tampa’s net position by $60.5 million (before transfers) and $31.9 million after transfers (e.g., transfers for Payment in Lieu of Taxes (PILOT) and Payment in Lieu of Franchise Fees (PILOFF) to the governmental funds). Key elements of this change are as follows:

• Charges for services increased $6 million (from $292.6 million to $299 million). As discussed more fully in the proprietary fund section below, water operating revenues were down $6 million (from $102 million to $96 million) due to watering restrictions; wastewater operating revenues were up $1 million (from $104 million to $105 million); and solid waste operating revenues were up $12 million (from $69.8 million to $81.9 million).

As the bar chart below illustrates, unlike governmental activities, business-type activities are typically able to pay for themselves through specific user charges and revenue sources.

Fund Level Financial Analysis

Governmental Funds.As noted earlier, the City of Tampa uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. These funds include governmental funds, proprietary funds and other fund types. The General Fund, Utility Tax Special Revenue Fund, Community Redevelopment Agency Special Revenue Fund and a variety of special revenue, debt service and capital project funds are recorded in the governmental funds. The focus of the City of Tampa’s governmental funds is to provide information on near-term inflows, outflows, and balances of

spendable resources. Such information is useful in assessing the City of Tampa’s financing requirements. In particular,

unassigned fund balance may serve as a useful measure of a government’s net resources at the end of the fiscal year. As of the end of the current fiscal year, the City of Tampa’s governmental funds reported combined ending fund balances of $267 million. Approximately 80% of this total amount ($213 million) is non-spendable, restricted, committed, or assigned, leaving $54 million (20%) unassigned. The Utility Tax Special Revenue Fund's fund balance of $48 million is classified as restricted based on its origin, but considered available, as it is used for operations

The General Fund is the chief operating fund of the City of Tampa. At the end of the current fiscal year, unassigned fund balance of the general fund was $54 million, while total fund balance was $81.4 million. As a measure of the general fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 16.5% of total general fund expenditures, while total fund balance represents 24.8% of that same amount. The City’s policy for unassigned fund balance for its combined general fund and utility tax fund combined is a minimum of 20%. Available fund balances in the General Fund and Utility Tax Special Revenue Fund combined is $102 million, or 31% of combined expenditures.

The fund balance of the City of Tampa’s general fund declined $16 million during the current fiscal year as a result of operations:

• The final General Fund budget reflected an anticipated deficit of $8 million. Actual revenues fell short of budgeted revenues by $15 million, while actual expenditures were $5 million under budget. Payments in lieu of taxes and franchise fees exceeded budget by $2.9 million.

• Most notably on the revenue side, franchise fees, convention center and investment earnings were $3.4 million, $3.7 million and $6 million less than budgeted respectively. On the expenditure side, most expenditures were under budget, however police, fire and convention center expenditures were slightly over budget.

• Revenues at $244 million were $21 million lower compared to 2012 (at $265 million). Most notably, property tax revenues at $117 million were down $2 million compared to the prior year. Convention Center revenues at $8.3 million were down $2 million.

• Actual expenditures, at $329 million were $21 million lower than the prior year (largely due to the Republican National Convention (RNC) impact in 2012). Public safety expenditures were down $4 million. Culture & recreation expenditures were down $2 million. Public works expenditures were up $4.6 million.

The fund balance of the utility tax special revenue fund decreased by $5.6 million in 2013, with an ending fund balance amount of $48 million. The key factors in this change are as follows:

• Revenues fell short of budgeted amounts by $5.6 million due to lower than expected enterprise fund activity. • Net transfers increased $4.3 million compared to 2012.

The fund balance in the Community Redevelopment Agency (CRA) major fund decreased $2.9 million in 2013, with an ending fund balance of $10.3 million. The key factors in this change are as follows:

• Total revenues decreased $1 million compared to 2012 due to lower tax increment property tax receipts. • Total expenditures increased $1 million compared to 2012 due to construction projects in the East Tampa and Channel District areas.

Proprietary Funds. The City of Tampa’s proprietary funds provide the same type of information found in the business-type activities column in the government-wide financial statements, but in more detail. These funds include the water, wastewater, solid waste, parking, and golf courses enterprise funds, along with the fleet and utility accounting internal service funds.

• In the Wastewater Utility Fund the change in net position before contributions and transfers was $21 million, about the same as 2012. Operating revenues increased $1 million, while operating expenses were up $1.6 million compared to the prior year.

• In the Solid Waste System Fund the change in net position before contributions and transfers was $15 million, a $8.7 million increase over the prior year as operating revenues increased $12 million and operating expenses increased $4 million.

• Unrestricted net position of the Water Utility amounted to $103 million, for the wastewater utility $79 million, for the solid waste system $33.7 million, and those for the non-major funds amounted to $.5 million. The total change in net position for the three major funds (water, wastewater and solid waste) was $17 million; $10.5 million; and $8.8 million, respectively. Other factors concerning the finances of those funds have already been addressed in the discussion of the City of Tampa’s business-type activities.

General Fund Budgetary Highlights

Differences between the original budget and the final amended budget were $1.4 million (decrease in appropriations) and can be briefly summarized as follows:

• $1.3 million increase to public safety.

• $1.3 million increase to parks and recreation. • $1.5 million decrease to general governmental. • $1.3 million increase in transfers out.

Differences between the final budget and actual revenues were ($15 million) (actual amount below the budgeted amount) and can be summarized as follows:

• Franchise fees were $3.4 million less than budgeted due to lower than expected activity.

• Convention Center revenues were $3.7 million less than budgeted as the depressed economy curtailed convention activities.

• Interest Earnings were $6.3 million less than budgeted due to a drop in market value of investments.

Capital Assets and Debt Administration

Capital Assets. The City of Tampa’s investment in capital assets for its governmental and business-type activities as of September 30, 2013, amounts to $2.3 billion (net of accumulated depreciation). This investment in capital assets includes land, buildings and improvements, machinery and equipment, park facilities,roads, highways, and bridges. The total net decrease in the City of Tampa’s investment in capital assets for the current fiscal year was .5% (a .8% increase for governmental activities and a 1.6% decrease for business-type activities). Major capital assets events during the current fiscal year included the following:

• Local Option Gas Tax Fund capital improvements totaled $13 million for street resurfacing, sidewalks, intersection improvements, Laurel Bridge rehab and other projects.

• Utility Tax Capital Fund capital improvements totaled $7.3 million for Duck Pond Stormwater Basin improvements, ERP software implementation and other projects.

• Impact Fees Construction Fund capital improvements totaled $3.7 million for the Boulevard Bridge and other projects.

• Community Investment Tax (CIT) Fund capital projects totaled $10.6 million for Waterworks project, aquatic facilities, fire station improvements and other projects.

Additional information on the City of Tampa’s capital assets can be found in Note 8 on pages 104-106 of this report.

Long-term debt. At the end of the current fiscal year, the City of Tampa had total revenue bonded debt outstanding of $704 million. Debt incurred under the State of Florida revolving loan program outstanding at the end of the fiscal year amounted to $39 million. HUD Section 108 loans and other notes outstanding at the end of the current fiscal year amounted to $37 million. The City does not pledge full faith and credit to secure any of its outstanding debt.

City of Tampa's Outstanding Debt

Revenue Bonds, State Loans, Notes Payable

Governmental

Activities Business-TypeActivities Total 2013 2012 2013 2012 2013 2012 Revenue bonds $ 351,930 $ 363,145 $ 351,765 $ 374,805 $ 703,695 $ 737,950 State of Florida revolving loans - - 39,188 45,918 39,188 45,918 CRA bank loan 1,899 3,117 - - 1,899 3,117 Notes payable 36,875 37,310 - - 36,875 37,310 Total $ 390,704 $ 403,572 $ 390,953 $ 420,723 $ 781,657 $ 824,295 The City of Tampa’s outstanding debt declined by $42.6 million during the current fiscal year after making $81 million in principal and interest payments. The City borrowed $71 million for the purpose of refunding Utility Tax and Solid Waste bonds and to acquire funding for the ERP project. As of the end of the current fiscal year the City had no general obligation debt.

In accordance with GASB Statement No 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, the Net Other Postemployment Benefit obligation (OPEB) included in the Outstanding Long-Term Liabilities represents the City's unfunded annual required contributions (ARC) pursuant to the actuarial calculations for the accrued cost of eligible retiree health insurance as of September 30, 2013. The net OPEB obligation at the end of fiscal years 2013 and 2012 were $22.5 million and $20 million respectively.

The city seeks to maintain a minimum of an "A" rating from Standard & Poor's rating Services (S&P), Fitch Ratings (Fitch), and Moody's Investor Services (Moody's) for revenue bonds. The most recent ratings are as shown below:

Issue Moody's Standard

& Poor's Fitch

Utility Tax - Senior Lien Aa2 AA AA

Utility Tax - Subordinate Lien Aa3 AA- AA-

Sales Tax Aa2 AA+ AA

Occupational License Aa2 AA AA-

Taxable Non-Ad Valorem Aa2 AA AA-

Water & Sewer Aa1 AA+ AA+

Solid Waste A3 none A+

Additional information on the City of Tampa's long-term debt can be found in Notes 11 and 12 on pages 110-118 of this report.

Economic Factors and Next Year's Budgets and Rates

• At March 31, 2013 the unemployment rate for the City of Tampa area was 6.9% which is lower than the rate of 10.5% of a year ago.

• A 6.8% increase in taxable property valuation (from $21.1 billion to $22.4 billion) is budgeted for 2014.

• During the current fiscal year, available fund balances in the general fund and utility tax fund declined to $102 million. The City of Tampa appropriated $10.3 million of this amount from the general fund for spending in the 2014 fiscal year budget.

The City continues ongoing communication with the County Property Appraiser to assess the impact of the housing and economic crisis on property values. After an increase in property values for fiscal year 2014, it is expected that there will be an additional increase in property values in 2015.

Requests for Information

This financial report is designed to provide a general overview of the City of Tampa’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the office of the Chief Financial Officer, City of Tampa, 306 East Jackson Street, Tampa, Florida, 33602, (813) 274-8151, or by visiting our website at : http://www.tampagov.net/dept_accounting.