HomeMy WebLinkAboutDocumentation_Regular_Tab 03_04/10/2008Village of Tequesta
Comprehensive Annual
Financial Report
Fiscal YeaY ~'nding ~S'eptembeY 30, 2007
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VILLAGE OF TEQUESTA, FLORIDA
TABLE OF CONTENTS
PAGE
I. INTRODUCTORY SECTION
Letter of Transmittal i-v
Certificate of Achievement for Excellence in Financial Reporting vi
Organization Chart vii
List of Principal Officials viii
II. FINANCIAL SECTION
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS 1-2
MANAGEMENT'S DISCUSSION AND ANALYSIS 3-15
BASIC FINANCIAL STATEMENTS:
Government-Wide Financial Statements:
Statement of Net Assets 16
Statement of Activities 17
Fund Financial Statements:
Balance Sheet -Governmental Funds 18
Statement of Revenues, Expenditures and Changes in Fund Balances - 19
Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 20
Statement of Net Assets -Proprietary Funds 21
Statement of Revenues, Expenses and Changes in Net Assets -Proprietary Funds 22
Statement of Cash Flows -Proprietary Funds 23
Statement of Fiduciary Net Assets -Fiduciary Funds 24
Statement of Changes in Fiduciary Net Assets -Fiduciary Funds 25
Notes to Basic Financial Statements 26-57
REQUIRED SUPPLEMENTARY INFORMATION (Other than MD&A):
Budgetary Comparison Schedule -General Fund 58
Note to Budgetary Comparison Schedule 59
Schedule of Employer Contributions 60
VILLAGE OF TEQUESTA, FLORIDA
TABLE OF CONTENTS
(Continued)
PAGE
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet -Nonmajor Governmental Funds 61
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Governmental Funds 62
Budgetary Comparison Schedule -Special Revenue Fund 63
Budgetary Comparison Schedule -Special Law Enforcement Trust Fund 64
Budgetary Comparison Schedule -Capital Improvement Fund 65
Combining Statement of Net Assets -Nonmajor Enterprise Funds 66
Combining Statement of Revenues, Expenses and Changes in Net Assets -
Nonmajor Enterprise Funds 67
Combining Statement of Cash Flows -Nonmajor Enterprise Funds 68
Combining.Statement of Fiduciary Net Assets 69
Combining Statement of Changes in Fiduciary Assets 70
III. STATISTICAL SECTION
Net Assets by Component -Last Five Fiscal Years 71
Changes in Net Assets -Last Five Fiscal Years 72-73
Program Revenues by Function/Program -Last Five Fiscal Years 74
Fund Balances, Governmental Funds -Last Ten Fiscal Years 75
Changes in Fund Balances, Governmental Funds -Last Ten Fiscal Years 76
Tax Revenues by Source, Governmental Funds -Last Five Fiscal Years 77
Revenues from Sales and Use Taxes by Category -Last Five Fiscal Years 78
Assessed and Estimated Actual Value of Taxable Property -Last Ten Fiscal Years 79
Property Tax Rates -All Direct and Overlapping Governments -Last Ten Fiscal Years 80
Principal Property Taxpayers -Current Year and Nine Years Ago 81
Property Tax Levies and Collections (Unaudited) -Last Ten Fiscal Years 82
Second Tier Capacity -Other Taxes by Category -Last Ten Fiscal Years 83
Ratios of Outstanding Debt by Type -Last Ten Fiscal Years 84
Ratio of Net Outstanding Debt to Assessed Value and Net Bonded Debt Per Capita (Unaudited) -
Last Ten Fiscal Years 85
Computation of Legal Debt Margin 86
Direct and Overlapping Governmental Activities Debt 87
Pledged-Revenue Coverage -Last Ten Fiscal Years 88
Demographic and Economic Statistics -Last Ten Fiscal Years 89
Full-time-Equivalent Village Government Employees by Function/1'rogram -
Last Six Fiscal Years 90
Operating Indicators by Function/Program -Current Fiscal Year 91
Capital Asset Statistics by Function/Program -Current Fiscal Year 92
VILLAGE OF TEQUE5TA, FLORIDA
TABLE OF CONTENTS
(Continued)
PAGE
N. COMPLIANCE SECTION
Report of Independent Certified Public Accountants on Compliance and 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 93-94
Management Letter in Accordance with the Rules of the Auditor General of the
State of Florida 95-96
INTRODUCTORY SECTION
ViClaae O
Te.AU.P.sta.
345 Tequesta Drive I P: (561) 575-6200
Tequesta, FL 33469 F: (561) 575-6203
March 10, 2008
To the Honorable Mayor,
Members of the Village Council
And Citizens of the Village of Tequesta, Florida
Chapter 11.45 of the Florida Statues, Chapter 10.550 of the rules of the Auditor General of the
State of Florida requires every general purpose local government publish within six months of the
close of each fiscal year a complete set of audited financial statements. The Comprehensive
Annual Financial Report of the Village of Tequesta, Florida, is published to fulfill that
requirement for the fiscal year ended September 30, 2007.
The financial statements included in this report conform to accounting principles generally
accepted in the United States (GAAP) established by the Governmental Accounting Standards
Board. This report consists of management's representations concerning the finances of the
Village of Tequesta. Consequently, management assumes full responsibility for the completeness
and reliability of the information presented. We believe the data presented in this report to be
accurate in all material respects, and include all statements and disclosures necessary for the
reader to obtain a thorough understanding of the Village's financial activities. To provide a
reasonable basis for making these representations, management has established a comprehensive
internal control framework that is designed for this purpose. Because the cost of internal controls
should not outweigh their benefits, the Village's comprehensive framework of internal controls
has been designed to provide reasonable rather than absolute assurance that the financial
statement will be free from 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.
The Village's financial statements have been audited by Rachlin LLP, a licensed certified public
accounting firm. The independent auditor concluded, based upon the audit, that there was
reasonable basis for rendering an unqualified opinion that the Village's financial statements for
the fiscal year ended September 30, 2007 are fairly presented in accordance with GAAP. The
independent auditor's report is located at the front of the financial section of this report.
Management's discussion and analysis (MD&A) immediately follows the independent auditor's
report and provides a narrative introduction, overview, and analysis of the basic financial
statements. MD&A complement this letter of transmittal and should be read in conjunction with
it.
PROFILE OF THE GOVERNMENT
The Village of Tequesta was incorporated June 4, 1957 and has aCouncil-Manager form of
government.
All powers of the Village are vested in an elected governing body of the Village consisting of a
five member Village Council responsible for enacting ordinances, resolutions and regulations
governing the Village, adopting budgets, determining policies, as well as appointing the members
of various advisory boards and the Village Manager. The Village Manager executes the laws and
administers the government as well as attends to the day-to-day affairs of the Village.
The Village of Tequesta provides a full range of services, including police and fire protection; the
construction and maintenance of streets and other infrastructure; recreational and cultural
activities; water and stormwater utilities and contracts for sanitation services.
The annual budget serves as the foundation for the Village of Tequesta's financial planning and
control. The Village departments meet with and submit their plans and needs for the coming year
to the finance department, which compiles a proposed budget. The Village Manager reviews and
then submits the Manager's recommended budget to the Village Council. The Village Council
reviews the budget, holds workshops for discussion on the budget and subsequently holds two
public hearings to obtain citizen input and make changes prior to adoption of the budget. Finally,
prior to October ls`, the Village Council adopts the approved budget along with an ordinance
establishing the property tax rate (millage) required to fund the budget. Department heads
recommend transfers of budgeted amounts within their department, which require approval of the
Village Manager. All transfers greater than $5,000, capital items or transfers between funds are
reported to the governing council. Supplemental appropriations require the special approval of
the governing council. Budget-to-actual comparisons are provided in this report for each
individual governmental fund for which an appropriated annual budget has been adopted.
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
Village of Tequesta operates
Local Economy
The Village is located at the extreme northeastern quadrant of Palm Beach County. Tequesta is a
relatively affluent residential community with adequate commercial facilities necessary to
provide goods and services to its residents. Northern Palm Beach County ranks as one of the top
growth areas in the country. Although Tequesta's growth potential is restricted by the natural
boundaries of the Atlantic Ocean to the east, the Loxahatchee River to the west, the Town of
Jupiter to the south and Martin County to the north, Tequesta's growth potential for the
foreseeable future continues to be favorable
ii
Property value assessments for fiscal year 2006/2007 increased approximately 15.4% from the
prior period.
On January 29, 2008 the Florida electorate approved an amendment to the Florida Constitution
relative to property taxation. This amendment (referred to as Amendment 1) was placed on the
ballot by the Florida Legislature at a special session held during 2007. With respect to
homesteaded property, Amendment 1 increases the current $25,000 homestead exemption by an
additional $25,000 (for property values between $50,000 and $75,000). This new $25,000
homestead exemption does not apply to school district taxes, and as such amount to an effective
increase of $15,000 or an estimated annual savings of $240 for the average homeowner.
Amendment 1 also allows property owners to transfer (make portable) up to $500,000 of their
Save Our Homes benefits to their next homestead when they move.
Amendment 1 becomes effective on October 1, 2008, with the exception of the ten percent
assessment cap on non-homestead property, which becomes effective on January 1, 2009.
Based upon information received from the Palm Beach County Property Appraisers' Office, the
estimated annual loss of property tax revenues for the Village from the additional homestead
exemption and a $25,000 exemption for tangible personal property is approximately $290,000.
Long-Term Financial Planning
The Village of Tequesta's primary focus related to economic growth is the rebuilding and
improving of existing commercial and residential property. The Village has afive-year capital
improvement plan to continue to maintain and enhance existing roadways, parks and recreational
facilities to encourage the improvement of these properties.
Unreserved, undesignated fund balance in the general fund falls within the policy guidelines
targeted by the Council for budgetary and planning purposes (i.e., 20% of total general fund
expenditures).
MAJOR INITIATIVES
• Review the Village's investment policies and strategies to more effectively
protect the Village's assets in the current economical environment.
• Continue to explore alternative revenue sources, at both the state and federal level, with
the assistance of a professional lobbyist
• Continue to explore annexation of contiguous properties in unincorporated Palm Beach
County.
• Continue to evaluate capital and operational needs within the Village to ensure ahigh-
level service delivery in an efficient and economical manner.
iii
• Continue to evaluate and implement contemporary policies and procedures to ensure the
efficient and economical operation of the Village of Tequesta.
~ Construct a new reverse osmosis train reducing demand on surficial wells and increasing
natural water supply.
Cash Management
The Village of Tequesta maintains two pooled cash accounts, the general investment account and
the water enterprise investment account. The finance department monitors cash requirements and
the finance director approves temporary idle cash for investment into these accounts. The
investment policy of the Village is to maximize its investments in high quality, risk-free securities
authorized by State statutes, while maintaining a competitive yield on its portfolio.
Tequesta's investments for the current year consisted of deposits with the State Board of
Administration (SBA) -Local Government Surplus Funds Trust Fund Investment Pool,
obligations of the U.S. Government, and amounts held by an outside custodian on behalf of the
Pension Trust Funds. Investments with the SBA consist of obligations of the U.S. Treasury and
its agencies, money market securities such as commercial paper, banker's acceptance, corporate
notes and repurchase agreements. On November 29, 2007 the State Board of Administration
implemented a temporary freeze on the assets held in the Pool due to an unprecedented amount of
withdrawals from the Fund coupled with the absence of market liquidity for certain securities
within the Pool. The significant amount of withdrawals followed reports that the Pool held asset-
backed commercial paper that was subject to subprime mortgage risk. On December 3, 2007,
based upon recommendations from BlackRock, an independent investment advisor, the State
Board of Administration restructured the Pool into two separate pools. Pool A consisted of top-
tier money market assets of the highest quality, while Pool B contained assets that either
defaulted on a payment, paid more slowly than expected or had significant credit or liquidity risk.
As funds become available in Pool B, they are transferred to Pool A for distribution. As of
February 29, 2008, the Village had $3,422,129 and $899,427 invested in Pool A and B,
respectively. Additional information regarding the Local Government Surplus Funds Trust Fund
maybe obtained from the State Board of Administration.
Risk Management
During 2007, Tequesta continued to use third-party insurance coverage for its Risk Management
Program.
Pension Benefits
The Village maintains asingle-employer, defined benefit pension retirement system. The
retirement system provides benefits to all full time firefighters, as well as any full time police
iv
officers or general employees hired January 1, 1996 or thereafter. In 1999, the Plans were
amended, establishing a separate plan for public safety officers (firefighters and police officers)
and a separate plan for general employees. The retirement system was established by the Village
and is administered by two separate Boards of Trustees (public safety offers and general
employees). The retirement system receives contributions that may not be used to pay the
benefits of all employee classes. Due to this restriction, for financial statement purposes, three
separate plans are shown as pension trust funds. The Village Employees' Retirement System
administers the following plans: The Firefighters' Pension Trust Fund (FPTF), The Police
Officers' Pension Trust (PPTF) and the General Employees' Pension Trust Fund (GPTF). The
Firefighters' Pension Trust Fund and the Police Officers' Pension Trust Fund have issued stand-
alone financial statements and are included in the financial statements of the Village as pension
trust funds.
AWARDS AND ACKNOWLEDGEMENTS
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to Tequesta for its comprehensive annual financial report for
the fiscal year ended September 30, 2006. This was the twenty-fourth consecutive year that
Tequesta has received this prestigious award. In order to be awarded a Certificate of
Achievement, Tequesta, had to publish an easily readable and efficiently organized
comprehensive annual financial report. This Report satisfied both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year. We believe that our current
comprehensive annual financial report will continue to meet the Certificate of Achievement
Program's requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
The preparation of this report would not have been possible without the efficient and dedicated
services of the entire staff of the finance department. We would like to express our appreciation
to all members of the department who assisted and contributed to the preparation of this report.
In closing, we must also acknowledge the Mayor and Council for their unfailing support for
maintaining the highest standards of professionalism in the management of the Village of
Tequesta's finances.
Respectfully submitted,
Michael R. Couzzo Jr.
Village Manager
~._.....
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/ oAnn Forsythe, CP'A
Finance Director
v
VILLAGE OF TEQUESTA, FLORIDA
CERTIFICATE OF ACHIEVEMENT
SEPTEMBER 30, 2007
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Village of Tequesta
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2006
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association o€the United States and Canada to
governn~nt units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve' the highest
standards in government accounting
and financial reporting.
uanS01 ~
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Executive Director
-vi-
VILLAGE OF TEQUESTA, FLORIDA
ORGANIZATION CHART
SEPTEMBER 30, 2007
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UI IIAGE MANAGER
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DEPARTMENT
SERUCRES i I DE ART ENT
RECREATIQN it I PARRS
UILLfl,GEATI~RNE~ III DEPRRTIJENIS II II VILL4GECLERK
FINANCE
DEPARTMENT
POLICE
DEPARTMENT
FIREIR~UE
DEPARTMENT
DEPARDMENT I I DEPAIRTM~ENT I I pDEPARTIIIENT~
51'STEq I STORMtNATER RECYCIENG
-vu-
VILLAGE OF TEQUESTA, FLORIDA
LIST OF PRINCIPAL OFFICIALS
SEPTEMBER 30, 2007
VILLAGE COUNCIL 2006-2007
James Humpage
Patricia Watkins
Dan Amero
Thomas Paterno
Calvin Turnquest
Mayor
Vice-Mayor
Councilmember
Councilmember
Councilmember
VILLAGE OFFICIALS
Michael R. Couzzo, Jr. Village Manager
Scott Hawkins Village Attorney
(Jones, Foster, Johnston & Stubbs, P.A.)
Lori McWilliams Village Clerk
JoAnn Forsythe, CPA Finance Director
James M. Weinand Fire Chief
William McCollom Police Chief
Catherine Harding Director of Community Development
Russell White Public Services Manager
Michael R. Couzzo, Jr. Director of Utilities
Gregg Corbitt Director of Parks and Recreation
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Rachlin LLP
Accountants & Advisors
-viii-
FINANCIAL SECTION
REPORT OF INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANTS
^
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accountants • advisors
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the Village of Tequesta,
Florida (the Village) as of and for the year ended September 30, 2007, which collectively comprise the
Village's basic financial statements, as listed in the table of contents. These financial statements are the
responsibility of the Village's management. Our responsibility is to express opinions on these basic
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material misstatement. An
audit includes consideration of internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the Village's internal control over financial reporting. Accordingly, we express no
such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the governmental activities, the business-type activities, each major fund, and the
aggregate remaining fund information of the Village of Tequesta, Florida as of September 30, 2007 and
the respective changes in financial position and cash flows, where applicable, thereof for the year then
ended in conformity with accounting principles generally accepted in the United States.
In accordance with Government Auditing Standards, we have also issued a report dated March 10, 2008
on our consideration of the Village's internal control over financial reporting and our tests of its
compliance with certain provisions of laws, regulations, contracts, 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 the internal
control over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be read in conjunction with the report in
considering the results of our audit.
-1-
Rachlin LLP ^ One Southeast Third Avenue ^ Tenth Floor ^ Miami, Florida 33131 Phone 305.377.4228 ^ Fax 305.377.8331 ^ www.raChlin.COm
An Independent Member of Baker Tilly International
M I A M I F O R T L A U D E R D A L E ^ W E S T P A L M B E A C H
Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
Page Two
Management's Discussion and Analysis and the Required Supplementary Information on pages 3 to 15
and pages 58 to 60, respectively, are not a required part of the basic financial statements but are
supplementary information required by accounting principles generally accepted in the United States. We
have applied certain limited procedures, which consisted principally of inquiries of management
regarding the methods of measurement and presentation of the required supplementary information.
However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Village's basic financial statements. The introductory section, combining and individual
fund statements and schedules and statistical tables are presented for purposes of additional analysis and
are not a required part of the basic financial statements. The combining and individual fund statements
and schedules, have been subjected to the auditing procedures applied in the audit of the basic financial
statements and in our opinion, is fairly stated in all material respects in relation to the basic financial
statements taken as a whole. The information identified in the table of contents as the Introductory and
Statistical Sections have not been subjected to the auditing procedures applied in the audit of the basic
financial statements, and, accordingly, we express no opinion thereon.
,~~~,c.ll~"'GLf
West Palm Beach, Florida
March 10, 2008
-2-
Rachlin
accountants • advisors
MANAGEMENT'S DISCUSSION AND ANALYSIS
(MD&A)
Village of Tequesta, Florida
Management's Discussion and Analysis
As management of the Village of Tequesta, we offer readers of the Village's financial statement this
narrative overview and analysis of the financial activities of the Village for the fiscal year ended
September 30, 2007. We encourage readers to consider the information presented here in conjunction
with the additional information that we have furnished in the letter of transmittal found on pages i to v
of this report.
Financial Highlights
• The assets of the Village of Tequesta exceeded its liabilities at the close of the most recent
fiscal year by $30.1 million (net assets). Of this amount, $8.4 million (unrestricted net
assets) may be used to meet the ongoing obligations to the citizens and creditors.
• The Village's total net assets increased by $2.9 million (10.5%) during the current fiscal year.
A key factor was the increase in ad valorem taxes due to a rise in the taxable value of real
property. Another factor was an increase in intergovernmental revenues of $136,827
(20.2%). Other increases from other taxes and franchise fees of $127,151 were offset by a
decrease in miscellaneous revenue of ($148,152).
• As of the close of the current fiscal year, the Village's governmental funds reported combined
ending fund balances of $5.5 million, an increase of $124,868 from the prior year.
• At the end of the current fiscal year, unreserved, undesignated fund balance for the General
fund was $3.5 million, an increase of $1.5 million from the prior year. Total fund balance
increased $1.1 million from the prior year.
• The Village's total long-term-debt decreased by $657,527 (-5.1%) during the current fiscal
year. Please see, Notes to Basic financial Statements, Note 9 on page 42.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Village of Tequesta's basic
financial statements. The Village's basic financial statements consist of three components: 1)
government-wide financial statements, 2) fund financial statements, and 3) notes to the financial
statements. In addition to these basic financial statements, this report contains other supplementary
information.
Government-wide financial statements. The government-wide financial statements are designed to
provide readers with a broad overview of the Village's finances, in a manner similar to a private-
sector business.
The statement of net assets presents information on all of the Village's assets and liabilities, with the
difference between the two reported as net assets. Over time, increases or decreases in net assets may
serve as a usefizl indicator of whether the financial position of the Village is improving or
deteriorating.
The statement of activities presents information showing how the Village's net assets changed during
the most recent fiscal year. All changes in net assets are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will 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 Village 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 Village included general
government, public safety, transportation and leisure services. The business-type activities of the
Village included water, stormwater and refuse and recycling.
The government-wide financial statements can be found on pages 16-17 of this report.
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 Village, 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 Village 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 fmancial statements. However, unlike
the government-wide financial statements, governmental fund 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 the Village'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 Village'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 Village maintains five 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, Special Revenue, Special Law Enforcement, Capital
Projects and Capital Improvement funds. The General and Capital Projects funds are considered to
be major funds in fiscal year ending September 30, 2007. Data from the other three governmental
funds is 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.
4
The Village adopts an annual appropriated budget for its General Fund. A budgetary comparison
statement has been provided for the General Fund to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 18-20 of this report.
Proprietary funds. The Village maintains one type of proprietary fund. Enterprise funds are used to
report the same functions presented asbusiness-type activities in the government-wide financial
statements. The Village uses enterprise funds to account for its water, stormwater and refuse and
recycling.
Proprietary funds 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 Utility. Data from Stormwater Utility and Refuse and Recycling funds are combined into a
single, aggregated presentation.
The basic proprietary fund financial statements can be found on pages 21-23 of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties
outside the Village. Fiduciary funds are not reflected in the government-wide financial statement
because the resources of those funds are not available to support the Village's own programs. The
accounting used for fiduciary funds is much like that used for proprietary funds.
The basic fiduciary fund financial statements can be found on pages 24-25 of this report.
Notes to the basic 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. The
notes to the basic financial statements can be found on pages 26-57 of this report.
Other information. In addition to the basic financial statements and accompanying notes, this report
also presents certain required supplementary information concerning the Village of Tequesta's
progress in funding its obligation to provide pension benefits to its employees. Required
supplementary information can be found on pages 58-60 of this report.
The combining statements referred to earlier in connection with nonmajor governmental funds, as
well as, nonmajor enterprise funds and fiduciary funds are presented immediately following the
required supplementary information. Combining and individual fund statements and schedules can be
found on pages 61-70 of this report.
Statistical Section. Twenty-one statistical tables are presented in compliance with GASB Statement
44, Economic Condition Reporting: The Statistical Section, under the following 5 categories:
Financial Trends, Revenue Capacity, Debt Capacity, Demographic and Economic Information and
Operating Information. The tables can be found on pages 71-92 of this report.
Government-wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of the Village's financial
position. In the case of the Village of Tequesta, total assets exceeded liabilities by $30.1 million at
the close of the most recent fiscal year.
The largest portion of the Village's net assets (70%) represents investment in capital assets (e.g., land,
buildings, machinery and equipment), less any related outstanding debt used to acquire those assets.
The Village uses these capital assets to provide services to citizens; consequently, they are not
available for future spending. Although the Village's investment in its 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.
The restricted portion of the Village's net assets, $469,534 (1.6%), represents resources that are
subject to external restrictions on how they may be used. The remaining unrestricted net asset
balance of $8.4 million (38.4 %) may be used to meet the Village's ongoing obligations to citizens
and creditors.
At the end of the current fiscal year, the Village of Tequesta is able to report positive balances in all
three categories of net assets, both for the government as a whole, as well as for its separate
governmental and business type activities. The same situation held true for the prior fiscal year.
The government's total net assets increased $2,896,517 (10.64%) during the year. This increase
demonstrates the degree in which increases in ongoing revenues have outpaced increases in ongoing
expenses.
6
Governmental activities. Governmental activities (excluding transfers) increased the Village of
Tequesta's net assets by $1,994,706, accounting for 69% of the total increase in net assets of the
Village. Key elements of this increase are as follows:
Government-type activities continued:
• Property taxes increased $972,253 (18.8%), mostly due to rising property values/assessments.
• Other tax revenues increased $69,639 (6.4%) mainly due to increased revenue from premium
insurance tax revenue. Water utility tax revenue decreased from the prior year.
• Intergovernmental revenues increased $136,827 (20.2%)
• Investment earnings increased $52,782 (7.9%).
• Charges for services decreased $109,514 (8%) this decrease was mainly due to a
decrease in the public safety function.
• Grant revenue from governmental activities decreased $825,069 (92%). This decrease was
spread across all functions.
• Other miscellaneous revenues decreased $66,715 (38%)
Expenses and Program Revenues -Governmental Activities
6.000,000 _... .. ... -
5,000,000 --- -------~------~--~------••--•-~- ----•
4,000,000 ---- ~------------_-___..__--- ------- --
3.000,000 -- - •-
2,000,000 ---~-
i,ooo,oao
® ® ..
General Transportaion Public Safety Leisure Services Interest on long
government Tcrm Debt
` ----
Figure 1 (I?spenses; Re~euues)
The Village's programs/functions include General Government, Public Safety, Transportation and
Leisure Services. The net cost shows the extent to which the Village's general revenues support each
of the Village's programs. The cost of all governmental activities this year was $8,581,371. As
shown on the Statement of Activities, the functions directly benefiting from the programs generated
revenue of $1,414,640 towards this cost and the remaining cost of $7,166,731 (86.5%) was financed
through general revenues. This represents a 13.1 % increase in the portion financed through general
revenues from prior year.
8
Revenues by Source -Governmental Activities
Interest Fines and forfeitures
4~..~ Rents and royaltres
Licenses andpermits~ 1~'°1 f 1".,
4°.W `` / Miscellaneous
0.5"~
1°~ ~"~~
Intragovcrnmental
3oti "~
Charges for scrvices~
5°~ ~
Franchise fees. / 1
4:b
`•
~:}
.,~ x~.
Taxes
69°~
Intergovenun
7.S~~u
Figure 2
I
r
In the chart above, revenue from ad valorem taxes has been combined with `other taxes' to show the
percentage of revenue generated from all tax sources in fiscal year ending September 30, 2007.
Business-type activities: The net assets of business-type activities increased $901,811 from the prior
year. Although net assets increased, operating income from business-type activities was $624,133, a
decrease of $307,275 (36.7%) from the prior year. (The water utility had the largest percentage of the
decrease (92.9%) a dollar decrease of $285,494). While expenses for business-type activities increased
$22,297, revenues from charges for services decreased $236,384. Additionally, grant revenues were
$88,644 less than the prior year and connection fees were 18.4% ($89,257) less than the prior year.
Expenses by Function -Business Type
Activities Revenue &
:ling
Stormwater
Utility
4%
I
i
Figure 3
Utility
8'3°i~
9
Revenues by Source -Business Type
Investment Activities
[ainin~5
7% ~ ~Miseellaneous
6°~,
Grants &
Contributions
8°~L
--- ------~------ ------Figure 4--
Financial Analysis of the Village's Funds
Char~esfor
Services
79%
As noted earlier, the Village of Tequesta uses fund accounting to ensure and demonstrate compliance
with finance-related legal requirements.
Governmental funds: The focus of the Village's governmental nds is to provide information on
near-term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the Village's financing requirements. In particular, unreserved fund balance may serve as a
useful measure of the Village's net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, The Village of Tequesta's governmental funds reported
combined ending fund balances $5,520,633, an increase of $124,864 from the prior year.
Approximately 77.8% ($4,276,714) of the total amount of fund balances constitutes unreserved,
undesignated fund balance, which is available for spending at the government's discretion.
Additionally, the Village has designated $1,000,000 (18%) of the fund balances for Disaster Relief in
the General Fund. Designations reflect the Village's self-imposed limitations on the use of otherwise
available current financial resources. The Village has reserved $243,919 (4.4%) of fund balances for
inventories, encumbrances and debt service.
The General Fund is the chief operating fund of the Village. At September 30, 2007, unreserved fund
balance of the general fund was $4,456,247 (this includes designations). As a measure of the general
fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to
total fund expenditures. Unreserved, undesignated fund balance represents 49.6% of total general
fund expenditures, while total fund balance represents 50.1% of that same amount.
Compared to the prior fiscal year, total General Fund revenues increased by $703,612 or 7.6%. Key
factors in this growth are as follows;
• Increase in property values and new construction resulting in increased ad-valorem taxes of
$972,253 (18.8%).
• Intergovernmental revenues increased $136,827 (20%).
• Fines and forfeitures increased $77,005 (226%)
10
• Rents and royalties were reported in miscellaneous revenues in prior years.
• These increases were offset by the following decreases in.revenue
o Revenue from grants decreased $329,549 (90%).
o Miscellaneous revenue decreased $122,444 (70%), as rents and royalties that were
reported in miscellaneous revenues in prior years is not separately reported
o Licenses and permits decreased $142,361 (26%).
The amount of General Fund revenue by type, their percent of the total and the amount of change
compared to last fiscal year are shown in the following schedule:
Revenues Sources
Taxes 6,139,007 61.9% 972,253 18.8% 5,166,754
Gather taxes inc in taxes 1,067,523 10.8°~ 20,236 -1.9°~ 1,087,759
Inter overnmental 815,828 8.2% 136,827 20% 679,001
Charges for services 526,922 5.3% 19,220 4% 507,702
Intra overnmental 273,150 2.8% 10,450 4% 262,700
Grants 35,634 0.4°~ 329,549 -90% 365,183
Licenses and ermits 401,704 4.1% 142,361 -26°~ 544,065
Interest 377,210 3.8°~ 2,253 1% 374,957
Fines and forteitures 111,080 1.1% 77,005 226% 34,075
Rents and Royalties 108,628 1.1% 108,628
Miscellaneous 52,899 0.5% 122,444 -70% 175,343
Im act fees 3,858 0.0% 8,434 -69% 12,292
Total Revenue 9,913,443 100.0% 703,612 7.6% 9,209,831
Revenues by Source - General Fund
Fu1e5 and forfeitures
Interest 1.1":.
~ 3 8 ;•
I
:Licenses and permits
;~
4.1% • '
i ~ ~•,j
~ Grants ~ ~i~ ~ ~ _
~ 0.4°.a ~~, 111
`' ~?
i
i Intragovcrnmental
i 2.8 i
t
Charges for services
' 5.3:6
Intergovernmental
i 8.2'%C
Rents and royalties
1.1°.~
Miscellaneous
O.S~G.
Property &
OtherTaxes
72.7%
Figure 5
11
Expenditures in the General Fund are shown in the following schedule:
Ezaenditures
General government
1,371,148
16.70%
-20,464
-1.49%
1,391,612
Public Safety 5,291,398 56.70% 554,732 10.48% 4,736,666
Transportation 736,436 9.70% -71,215 -9.67°~ 807,651
Leisure services 495,767 8.30% -196,641 -39.66% 692,408
Capital outlay 532,703 2.80% 293,508 55.10°~ 239,195
Debt service 568,371 5.80% 81,948 14.42% 486,423
Total expenditures 8,995,823 100% 641,868 7.14°i° 8,353,955
In fiscal year 2007, total General fund expenditures increased by $641,868 or 7.14 percent compared
to the prior year.
The largest dollar increase in the General fund was in Public Safety ($554,732) which
represents 86.5 % of the total increase in expenditures. $209,984 of that increase is due to a
change in the way insurance premium taxes and the related pension contribution expenses are
reported. In the past, the revenue and expense related to receipt of insurance premium taxes
(contributions), were reported directly into the Pension Trust funds. In fiscal year ending
9/30/2007, however, we are reporting this revenue and expense into the general fund. It is
then recorded as an expense (contribution) to the Pension Trust funds. Had this been reported
as in prior years, the increase in the public safety function would have been $344,748.
The increase in debt service of $81,948 is mainly due to early pay down of principal. The
Village was able to pay down $66,367 of principal on a loan for the 800mghz radio system as
the police department applied for and received a grant to subsidize this system.
The Special Revenue fund has a total fund balance of $482,726 reserved for paying debt service on the
Improvement Revenue Refunding Bond Series 1994. The final payment on this bond will be made in
F/Y/E 9/30/2009.
Ending fund balances for the Capital Projects fund is $410,172 and the Capital Improvement fund is
$103,149. These funds are designated for capital projects/improvements. Revenue into these funds are
from capital grants and transfers-in. There was a net decrease in fund balances during the current year
as actual expenditures exceeded revenues in the capital projects and capital improvement funds by
$1,086,094. This decrease is mainly due to the cost to complete the municipal center: $981,673.
Proprietary funds: The Village's proprietary funds provide the same type of information found in
the government-wide fmancial statements, but in more detail.
At the end of the year, total net assets of the Water Utility were to $15,767,249: an increase of
$823,768 (6%) from the prior year. Although net assets increase, income from operations declined
$285,494 (35%) from the prior period. A decline in operating revenue of $328,404, along with a
decline in connection fees of $60,950 were the major reasons for this overall decline in income from
the prior period. Other factors concerning the finances of this major fund have already been addressed
in the discussion of the Village's business-type activities.
12
General Fund Budgetary Highlights
Differences between the original budgeted expenditures and the final amended budget can be briefly
summarized as follows:
• The budget for legal fees increased $82,000
• The public safety budget increased $147,925
• The transportation (public works) budget decreased $74,601.
• Capital outlay budget increased $367,404 mainly due to additional public safety capital
requests.
• Debt increased mainly to an additional budgeted cost to pay down $66,360 on the public
safety radio system.
$151,781 (35%) of this increase was funded by appropriating existing fund balance and the remaining
increase was funded through increases in various budgeted revenues. Some of the major increases in
appropriations were funded by;
• Increasing other tax revenue by $147,882 mainly due to increases in insurance premium tax
revenues
• Increasing grants and contributions $53,748
• Increasing fines and forfeitures $66,350
Although the final budgeted oyeratin~ expenditures were $606,250 (6.7%) greater than the original
budget, actual operating expenditures were $165,715 (1.8%) less than the original budget and
$771,965 (7.8%) less than the amended budget. Additional detail of final budget versus actual:
• General government decreased $168,947, with the decrease distributed across departments.
• Public safety decreased $291,357, with the decrease distributed across all departments.
• Transportation decreased $207,495, personal services decreased $87,206 and operating
expenditures decreased $120,287
• Leisure services decreased $32,061 mainly due to decreases in recreation personal and
operating costs.
Capital Assets and Debt Administration
Capital assets: The Village's capital assets for its governmental and business-type activities as of
September 30, 2007 aze $29,098,407 (net accumulated depreciation). These assets include land,
buildings, improvements-other-than-buildings and machinery and equipment. The total increase in the
Village's capital assets for the current fiscal years was 13.3 percent- Following is a detail of capital
assets at September 30, 2007.
Additional information on the Village's capital assets can be found in Note 7, Capital Assets, starting
on page 37 of this report.
Long-term Debt: At the end of the current fiscal year, the Village had no general obligation bonded
debt. All of the Village's outstanding debt is secured by specified and general revenue sources.
13
anita~F accatc ~- [~n~iiarnmrantal ~ Rucinecs ` 2007
Land
Construction in
UIIdIngS 7,790,354 $ 979,512 $ 8,769,866_
iprovements 2,157,358 $ 29,377,857 $ 31,535,215
quipment 3,901,219 $ 1,124,622 $ 5,025,841
Total capital assets $ 15,214,121 $ 31,565,326 $ 46,779,447
Less accumulated depreciation _
Total capital assets, net
21
2007 20D6 2~7 2006 2007 2006
Revenue Bonds, net $ 25$846 $ 38Q0~ $ 6,587,895 $ F763,965 $ F847,741 $ 7,143,965
Niles payable 4,11Q052 4,30Q8~ 437,962 4,425 4,5y6,~4 4,779,251
Capkalleases 33Q150 50$887 336,150 508,887
CanpensatedAbsenoes 437,726 413196 148,231 140,060 5ffi,969 553,258
$ 5,153,776 $ 5,611,911 ~ 7,174,078 $ 7,373,470 $ 12327,854 $ 12985,381
During the current fiscal year, the Village's net outstanding debt, decreased by $657,527 (5.3%).
Additional information on the Village's long-term debt can be found in Note 9. Long Term Debt
starting on page 42 of this report.
Economic Factor and Nett Year's Buds?ets and Rates
• The 2007 Florida Legislature enacted legislation, effective Apri19, 2007 and retroactive to
January 1, 2007 which increased the additional exemption for low income seniors that cities
and counties may grant from a maximum of $25,000 to a maximum of $50,000.
• In compliance with legislation enacted by the State of Florida Legislature during 2007 and
based upon a maximum millage levy calculation using a compound annual growth rate, the
Village of Tequesta reduced the ad valorem millage rate to 5.7671 per $1,000 of taxable value.
This represented a 9% reduction of the rolled-back rate of 6.3375 and an 11.3% reduction
from the prior years' millage rate of 6.4980 per $1,000 of taxable value.
• The Village had noted a decline in home sales as well as an increase in the sale of distressed
properties throughout the State of Florida as well as in Palm Beach County. Although that
had not translated into significantly declining home (taxable) values in the Village of Tequesta
for the 2007-2008 budget, we will be watching this carefully during the next year.
14
• The unemployment rate for the Village of Tequesta is currently 3.3 percent, which is a
decrease of 0.4 percent from a rate of 3.7 percent a year ago.
• All of these factors were considered in preparing the Village of Tequesta's budget for the 2007
fiscal year.
The Village of Tequesta's water rates are changed each year based on calculations detailed in the
Village's Code of Ordinances. Based on these calculations the water rates were increased 1.17% on
October 1, 2007.
Requests for Information
This financial report is designed to provide a general overview of the Village of Tequesta's finances
for all those with an interest in the government's finances. Questions concerning any of the
information provided in this report or requests for additional financial information should be addressed
to the Village of Tequesta, Finance Office, 345 Tequesta Drive, Tequesta, Florida 33469.
15
Page Intentionally Left Blank
BASIC FINANCIAL STATEMENTS
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2007
ASSETS
Cash and cash equivalents
Investments
Receivables, net
Inventories
Restricted assets:
Cash and cash equivalents
Investments
Net pension assets
Other assets
Capital assets not being depreciated
Capital being depreciated, net
Total assets
LIABII,TTIES
Liabilities:
Accounts payable
Retainage payable
Accrued liabilities
Customer deposits
Due to other governments
Other current liabilities
Unearned revenue
Non-current liabilities:
Due within one year
Due in more than one year
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Restricted for debt service
Restricted for renewal and replacement
Unrestricted
Total net assets
Business-
Governmental type
Activities Activities Total
$ 129,182 $ 466,999 $ 596,181
5,908,188 2,983,259 8,891,447
436,480 299,213 735,693
27,846 22,067 49,913
10,000 10,000
140,990 633,793 774,783
355,614 - 355,614
14,539 158,825 173,364
1,365,190 83,335 1,448,525
10,135,959 21,456,011 31,591,970
18,513,988 26,113,502 44,627,490
266,087 627,796 893,883
136,627 1,000 137,627
292,634 47,224 339,858
- 315,248 315,248
3,383 - 3,383
116,006 59,884 175,890
321,855 - 321,855
479,778 214,500 694,278
4,673,999 6,959,577 11,633,576
6,290,369 8,225,229 14,515,598
6,679,855 14,513,500 21,193,355
140,990 136,019 277,009
- 192,525 192,525
5,402,774 3,046,229 8,449,003
$ 12,223,619 $17,888,273 $30,111,892
See notes to basic financial statements.
-16-
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED SEPTEMBER 30, 2007
Net (Expense) Revenue and
Program Revenues Changes in Net Assets
Charges Operating Capital Business-
for Grants and Grants and Governmental type
Functions/Pro_grams Expenses Services Contributions Contributions Activities Activities Total
Governmental activities:
General government $ 1,391,654 $ 278,215 $ - $ - $ (1,113,439) $ - $ (1,113,439)
Transportation 766,226 - 19,078 - (747,148) - (747,148)
Public safety 5,634,834 1,006,947 1,272 - (4,626,615) - (4,626,615)
Leisure services 559,583 54,364 - 54,764 (450,455) - (450,455)
Interest on long term debt 229,074 - - - (229,074) - (229,074)
Total governmental activities 8,581,371 1,339,526 20,350 54,764 (7,166,731) - (7,166,731)
Business-type activities:
Water 4,139,784 3,850,508 7,827 430,000 - 148,551 148,551
Other enterprise activities 495,056 589,190 - - - 94,134 94,134
Total business-type activities 4,634,840 4,439,698 7,827 430,000 - 242,685 242,685
Total $13,216,211 $ 5,779,224 $ 28,177 $ 484,764 (7,166,731) 242,685 (6,924,046)
General revenues:
Ad valorem taxes 6,139,007 - 6,139,007
Other taxes 1,157,128 - 1,157,128
Franchise fees based on gross receipts 477,711 - 477,711
Unrestricted intergovernmental 815,828 - 815,828
Unrestricted investment earnings 404,816 321,718 726,534
Miscellaneous revenues 106,647 397,708 504,355
Transfers 60,300 (60,300) -
Total general revenues 9,161,437 659,126 9,820,563
Change in net assets 1,994,706 901,811 2,896,517
Net assets, beginning 10,228,913 16,986,462 27,215,375
Net assets, ending $ 12,223,619 $17,888,273 $30,111,892
See notes to basic fmancial statements.
-17-
VILLAGE OF TEQUESTA, FLORIDA
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2007
ASSETS
Cash and cash equivalents
Investments
Receivables, net
Inventories
Restricted assets:
Cash and cash equivalents
Investments
Other assets
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Retainage payable
Accrued liabilities
Due to other governments
Deferred revenue
Other current liabilities
Total liabilities
Fund balances:
Reserved for:
Inventories
Encumbrances
Debt service
Unreserved, designated for, reported in:
General fund:
Designated for disaster relief
Unreserved, undesignated, reported in:
General fund
Special revenue fund
Capital projects fund
Capital improvement fund
Special law enforcement fund
Total fund balances
Total liabilities and fund balances
Capital Other Total
Projects Governmental Governmental
General Fund Funds Funds
$ 114,770 $ 916 $ 13,496 $ 129,182
4,871,312 603,625 433,251 5,908,188
319,758 54,764 61,958 436,480
27,846 - - 27,846
- - 140,990 140,990
14,539 - - 14,539
5,348,225 659,305 649,695 6,657,225
153,581
292,634
3,383
278,881
116,006
844,485
112,506 - 266,087
136,627 - 136,627
- - 292,634
- - 3,383
- 42,974 321,855
- - 116,006
249,133 42,974 1,136,592
27,846 - - 27,846
19,647 55,436 - 75,083
- - 140,990 140,990
1,000,000 - - 1,000,000
3,456,247 - - 3,456,247
- - 341,736 341,736
- 354,736 - .354,736
- - 103,149 103,149
- - 20,846 20,846
4,503,740 410,172 606,721 5,520,633
$5,348,225 $659,305 $ 649,695
Amounts reported for governmental activities in the
statement of net assets are different because:
Capital assets used in governmental activities are not futancial resources and,
therefore, are not reported in the funds.
Net pension asset is not considered to represent a financial asset
Long-term liabilities, including bonds payable, not due and payable in the current
period and therefore are not reported in the governmental funds
Net assets of governmental activities
11,501,149
355,614
(5,153,777)
$ 12,223,619
See notes to basic financial statements.
-18-
VII.LAGE OF TEQuESTA, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2007
Revenues:
Ad valorem taxes
Other taxes
Intergovernmental
Franchise fees
Charges for services
Intragovernmental
Grants and contributions
Licenses and permits
Investment earnings
Fines and forfeitures
Miscellaneous
Rents and royalties
Impact fees
Total revenues
Expenditures:
Current:
General government
Public safety
Transportation
Leisure services
Capital outlay
Debt service:
Principal
Interest
Fiscal charges
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances, beginning
Fund balances, ending
Capital Other Total
Projects Governmental Governmental
General Fund Funds Funds
$ 6,139,007 $ - $ - $ 6,139,007
1,067,523 - 89,605 1,157,128
815,828 - - 815,828
- - 477,711 477,711
526,922 - - 526,922
273,150 - - 273,150
35,634 54,764 - 90,398
401,704 - - 401,704
377,210 - 27,606 404,816
111,080 - - 111,080
52,899 - - 52,899
108,628 - - 108,628
3,858 - - 3,858
9,913,443 54,764 594,922 10,563,129
1,371,148 - - 1,371,148
5,291,398 - - 5,291,398
736,436 - - 736,436
495,767 - - 495,767
532,703 1,323,502 35,870 1,892,075
362,511 -
199,722 -
6,138 -
8,995,823 1,323,502
120,154 482,665
23,216 222,938
- 6,138
179,240 10,498,565
917,620 1,268,738 415,682 64,564
406,830 218,514 60,300 685,644
218,514 - (406,830) (625,344)
188,316 218,514 (346,530) 60,300
1,105,936 (1,050,224) 69,152 124,864
3,397,804 1,460,396 537,569 5,395,769
$4,503,740 $ 410,172 $ 606,721 $ 5,520,633
See notes to basic financial statements.
-19-
VILLAGE OF TEQUESTA, FLORIDA
RECONCILIATION OF THE STATEMEN'T' OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED SEPTEMBER 30, 2007
Amounts reported for governmental activities in the statement of activities
(Page 17) are different because:
Net change in fund balances -total governmental funds (Page 19) $ 124,864
Governmental funds report capital outlays as expenditures. However, in the
statement of activities, the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense. This is the
amount by which capital outlays exceeded depreciation in the current period.
The details of the difference are as follows:
Capital outlay $1,892,079
Depreciation expense 533,736
Net adjustment 1,358,343
The issuance of long-term debt provides current financial resources to
governmental funds, while the repayment of the principal of long-term
debt consumes the current fmancial resources of governmental funds.
The detail of the differences are as follows:
Principal payments:
1994 revenue bonds 120,154
Notes payable 191,774
Capital leases 170,737
Net adjustment 482,665
Some expenses reported in the statement of activities do not require the
use of current fmancial resources and, therefore, are not reported as
expenditures in governmental funds:
The details of the difference are as follows:
Compensated absences (24,530)
Net pension expenses 53,364
Change in net assets of governmental activities (Page 17) $ 1,994,706
See notes to basic financial statements.
-20-
VILLAGE OF TEQUE5TA, FLORIDA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2007
ASSETS
Current assets:
Cash and cash equivalents
Investments
Accounts receivable, net
Inventories
Other assets
Restricted assets:
Cash
Investments
Total current assets
Non-current assets:
Capital assets not being depreciated
Capital assets being depreciated
Total non-current assets
Total assets
LiABILTTIES AND NET ASSETS
Current liabilities:
Accounts payable
Retainage payable
Accrued liabilities
Customer deposits
Current maturities of long-term debt
Current portion of compensated absences
Other current liabilities
Total current liabilities
Long-term liabilities:
Compensated absences
Revenue bonds payable (net of discount)
Note payable
Total long-term liabilities
Total liabilities
Net assets:
Invested in capital assets, net of related debt
Restricted for debt service
Restricted for renewal and replacement
Unrestricted
Total net assets
Business-type Activities
Water Nonmajor
Fund Funds Totals
$ 465,424 $ 1,575 $ 466,999
2,630,366 352,893 2,983,259
291,988 7,225 299,213
22,067 - 22,067
158,825 - 158,825
10,000 - 10,000
633,793 - 633,793
4,212,463 361,693 4,574,156
83,335 - 83,335
19,668,746 1,787,265 21,456,011
19,752,081 1,787,265 21,539,346
23,964,544 2,148,958 26,113,502
601,996 25,800 627,796
1,000 - 1,000
46,344 880 47,224
315,249 - 315,249
208,000 - 208,000
6,500 - 6,500
59,884 - 59,884
1,238,973 26,680 1,265,653
140,476 1,255 141,731
6,402,894 - 6,402,894
414,952 - 414,952
6,958,322 1,255 6,959,577
8,197,295 27,935 8,225,230
12,726,23 5 1,787,265 14,513,500
136,019 - 136,019
192,525 - 192,525
2,712,470 333,759 3,046,229
$15,767,249 $2,121,024 $17,888,273
See notes to basic financial statements.
-21-
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF REVENUES, EXPENSES ATTD CHANGES IN NET ASSETS
PROPRIETARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2007
Operating revenues:
Charges for services
Intergovernmental revenue
Total operating revenues
Operating expenses:
Cost of sales and services:
Plant production
Distribution
Stormwater
Purchased services
Management services
Administration
Depreciation
Total operating expenses
Operating income
Non-operating revenues (expenses):
Connection fees
Investment income
Interest income
Interest expense
Other financial charges
Total nornoperating revenues (expenses)
Income before transfers
Transfers in
Transfers out
Change in net assets
Net assets, beginning
Net assets, ending
Business-ty pe Activities
Water Nonmajor
Fund Funds Totals
$ 3,850,508 $ 589,190 $ 4,439,698
437,827 - 437,827
4,288,335 589,190 4,877,525
1,034,128 - 1,034,128
676,082 - 676,082
- 103,722 103,722
556,562 300,384 856,946
258,400 5,500 263,900
352,150 463 352,613
881,014 84,987 966,001
3,758,336 495,056 4,253,392
529,999 94,134 624,133
397,708 - 397,708
569 - 869
276,940 44,209 321,149
{375,376) - (375,376)
{6,072) - (6,072}
293,769 44,209 337,978
823,768 138,343 962,111
- 60,300 (60,300)
823,768 78,043 901,811
14,943,481 2,042,981 16,98b,462
$15,767,249 $2,121,024 $17,888,273
Sea notes to basic financial statements.
-22-
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2007
Business-typ e Activities
Water Nonmajor
Fund Funds Totals
Cash flows from operating activities:
Cash received from customers, governments and other funds $ 4,849,590 $ 589,053 $ 5,438,643
Cash paid to suppliers (1,494,104) (343,891) (1,837,995)
Cash paid to employees (1,009,394) 43,547 (1,052,941)
Net cash provided by operating activities 2,346,092 201,615 2,547,707
Cash flows from non-capital financing activities:
Transfers to other funds - 60,300 (60,300)
Net cash used in non-capital fmancing activities - (60,300) (60,300)
Cash flows from capital and related financing activities:
Acquisition and construction of capital assets (3,027,207) (522,542) (3,549,749)
Connection fees 397,708 - 397,708
Principal payments (207,564) - (207,564)
Interest paid (381,448) - (381,448)
Net cash used in capital and related financing activities (3,218,511) 522,542 (3,741,053)
Cash flows from investing activities:
Purchases of investments 810,658 336,689 1,147,347
Increase in restricted assets 60,594 - 60,594
Interest received on investments 277,509 44,209 321,718
Net cash provided by investing activities 1,148,761 380,898 1,529,659
Net increase (decrease) in cash and cash equivalents 276,342 (329) 276,013
Cash and cash equivalents, beginning 189,082 1,904 190,986
Cash and cash equivalents, ending $ 465,424 $ 1,575 $ 466,999
Adjustments to reconcile operating income to net cash provided
by operating activities:
Operating income $ 529,999 $ 94,134 $ 624,133
Depreciation and amortization 881,014 84,987 966,001
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable 554,024 (136) 553,888
Inventories (7,520) 28 (7,492)
Other assets 11,096 - 11,096
Increase (decrease) in:
Accounts payable and accrued liabilities 363,012 21,604 384,616
Compensated absences 7,236 998 8,234
Customer deposits 7,231 - 7,231
Net cash provided by operating activities $ 2,346,092 $ 201,615 $ 2,547,707
See notes to basic financial statements.
-23-
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
SEPTEMBER 30, 2007
ASSETS
Cash and cash equivalents
Investments, at fair value:
Corporate stocks
Corporate bonds
Government backed assets
Non-government MBS/CMA/ABS
Accounts receivable
Contribution receivable
Accrued interest receivable
Total assets
LIABII,ITIES AND NET ASSETS
Accounts payable
Total liabilities
Net assets held in trust for pension benefits
Pension
Trust
Funds
$ 273,200
3,137,935
190,344
1,576,173
107,3 76
350
80,803
21,478
5,387,659
14,456
14,456
$ 5,373,203
See notes to basic fmancial statements.
-24-
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2007
ADDITIONS
Contributions:
Employer
Employee
Total contributions
Investment income
Net appreciation in fair value of investments
Investment earnings
Less investment expenses
Net investment income
Total additions
DEDUCTIONS
Pension benefits
Operating expenses
Total deductions
Net increase
Net assets held in trust for pension benefits:
Net assets, beginning
Net assets, ending
Pension
Trust
Funds
$ 537,268
188,145
725,413
446,491
174,877
621,368
46,196
575,172
1,300,585
61,869
33,844
95,713
1,204,872
4,168,331
$ 5,373,203
See notes to basic fmancial statements.
-25-
NOTES TO BASIC FINANCIAL STATEMENTS
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2007
NOTE 1. 5iTNIlVIARY OF SIGNIFICANT ACCOUNTING POLICIES
The Village of Tequesta, Florida is a municipal corporation organized in 1957 pursuant to Special
Act 57-1915, Laws of Florida. The Village has aCouncil-Manager form of government.. The
Village's major operations include public safety (police, fire rescue/EMS), streets and roads,
culture and recreation, public improvements, planning and zoning, water, stormwater, recycling
services and general and administrative. The financial statements of the Village have been
prepared in conformity with accounting principles generally accepted in the United States
(GAAP) as applied to governmental units. The Governmental Accounting Standards Board
(GASB) is the accepted standard-setting body for establishing governmental and financial
reporting principles. The more significant of the Village's accounting. policies are described
below:
a. The Financial Reporting Entity
The financial statements were prepared in accordance with government accounting standards,
which establishes standards for defining and reporting on the financial reporting entity. The
definition of the financial reporting entity is based upon the concept that elected officials are
accountable to their constituents for their actions. One of the objectives of fmancial reporting
is to provide users of financial statements with a basis for assessing the accountability of the
elected officials. The financial reporting entity consists of the Village, organizations for which
the Village is financially accountable and other organizations for which the nature and
significance of their relationship with the Village are such that exclusion would cause the
reporting entity's financial statements to be misleading or incomplete. The Village is
financially accountable for a component unit if it appoints a voting majority of the
organization's governing board and it is able to impose its will on that organization or there is
a potential for the organization to provide specific fmancial benefits to, or impose specific
financial burdens on, the Village.
Based upon the application of these criteria, the Village Employees' Retirement System (the
Retirement System) meets- the criteria described above and has been included in the
accompanying fmancial statements. The Retirement System functions for the benefit of the
employees and is governed by a seven member board, of which the Village Council appoints
three members. The Village and Retirement System members are obligated to fund all
Retirement System costs based upon actuarial valuations. The Village funds the difference
between member and other contributions and the actuarial cost. Considering these factors, it
has been determined that the Retirement System is fiscally dependent on the Village, which
makes the Retirement System a component unit of the Village. Since the Retirement System
provides services exclusively for the benefit of the Village, the Retirement System is reported
as a blended component unit, specifically as the Village Employees' Retirement System. The
Village Employees' Retirement System administers the following Plans: The General
Employees' Pension Trust Fund, which does not issue a stand alone financial report, and The
Public Safety Officers' Pension Trust Fund which consists of The Firefighters' Pension Trust
Fund, and The Police Officers' Pension Trust Fund. The Public Safety Officers' Pension
Trust Fund does not issue a stand alone financial report.
-26-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
b. Government-Wide and Fund Financial Statements
The government-wide fmancial statements (i.e., the statement of net assets and the statement
of activities) report information on all of the non-fiduciary activities of the Village. For the
most part, the effect of interfund activity has been removed from these statements.
Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely to a significant
extent on fees and chazges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses aze those that are clearly
identifiable with a specific function or segment. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or
segment. Taxes and other items not properly included among program revenues are reported
instead as general revenues.
Separate fmancial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government-wide fmancial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements. All remaining nonmajor
governmental funds or proprietary funds are aggregated and reported as other governmental or
other proprietary funds.
c. Measurement Focus, Basis of Accounting and Basis of Presentation
The government-wide fmancial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and
fiduciary fund fmancial statements. Revenues are recorded when earned and expenses aze
recorded when a liability is incurred, regardless of the timing of related cash flows. Property
taxes are recognized as revenues in the year for which they are levied. Grants and similaz
items are recognized as revenue as soon as all eligibility requirements imposed by the provider
have been met.
Governmental fund fmancial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available
when they are collectible within the current period or soon enough thereafter to pay liabilities
of the current period. For this purpose, the Village considers revenues to be available if they
are collected within 60 days of the end of the current fiscal period. Expenditures are recorded
when a liability is incurred, as under accrual accounting. However, debt service expenditures,
as well as expenditures related to compensated absences and claims and judgments, aze
recorded only when payment is due.
-27-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
c. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
Property taxes, franchise fees and other taxes, licenses, and interest associated with the current
fiscal period are all considered to be susceptible to accrual and so have been recognized as
revenues of the current fiscal period. All other revenue items are considered to be measurable
and available only when cash is received by the Village.
The Village reports the following major governmental funds:
The General Fund is the Village's primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another
fund.
The Capital Projects Fund accounts for the acquisition or construction of various major
capital projects.
The Village also reports the following nonmajor government funds:
The Special Revenue Fund accounts for revenue sources that are legally restricted to
expenditures for specific resources. The Special Revenue Fund accumulates revenues as
required by the Improvement Revenue Refunding Bonds, Series 1994. These revenues
include franchise fees and occupational licenses.
The Special Law Enforcement Fund accounts for forfeitures received by the Police
Department. The forfeitures must be expended for certain law enforcement purposes as
prescribed by Florida Statue Chapter 932.704.
The Capital Improvement Fund is used to account for the maintenance and upkeep of
the Village's general infrastructure (such as roads, bridges, sidewalks and storm
water drainage systems) and streetscape beautification projects.
The Village reports the following major proprietary funds:
The Water Fund is used to account for the activities of the water operations.
The Village also reports the following nonmajor proprietary funds:
The Stormwater Utility Fund accounts for the construction and maintenance of the
Village's Stormwater system.
The Refuse and Recycling Fund is used to account for the fees charged for solid waste and
recyclable material collection.
-28-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
c. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
Additionally, the Village reports the following fiduciary funds:
The Firefighters' Pension Trust Fund accounts for the accumulation of resources and for
contributions and benefits of the firefighter employees.
The Police Officers' Pension Trust Fund accounts for the accumulation of resources and
for contributions and benefits of the police employees.
The General Employees' Trust Fund accounts for the accumulation of resources and for
contributions and benefits for the general employees of the Village.
Private-sector standards of accounting and financial reporting issued prior to December 1,
1989, generally are followed in both the government-wide and proprietary fund fmancial
statements to the extent that those standards do not conflict with or contradict guidance of the
Governmental Accounting Standards Board. The Village has the option of following
subsequent private-sector guidance for their business-type activities and enterprise funds,
subject to this same limitation. The Village has elected not to follow subsequent private-
sector guidance.
As a general rule, the effect of interfund activity has been eliminated from the government-
wide fmancial statements. Exceptions to this general rule are payments-in-lieu of taxes and
other charges between the Village utility functions and various other functions of the Village.
Elimination of these charges would distort the direct costs and program revenues reported for
the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for
goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital
grants and contributions. Internally dedicated resources are reported as general revenues
rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary .funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The
principal operating revenues of the Village's water utility, stormwater utility and solid waste
services funds are charges to customers for services. Operating expenses for proprietary funds
include the costs of services, administrative expenses, and depreciation on capital assets. All
revenues and expenses not meeting this definition are reported as nonoperating revenues and
expenses.
When both restricted and unrestricted resources are available for use, it is the Village's policy
to use restricted resources first, then unrestricted resources as they are needed.
-29-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
d. Assets, Liabilities, and Net Assets or Equity
1. Deposits and Investments
The Village's cash and cash equivalents include cash on hand, time and demand deposits,
and short-term investments with original maturities of three months or less from the date of
acquisition and investments with the State Board Investment Pool.
Short-term investments, except the State Board Investment Pool, are reported at cost,
which approximates fair value. The Investment Pool is recorded at its value of the pool
shares (2A-7 Pool) which is fair value.
The nature of investments is governed by the provisions of Florida Statutes Section 218.
Under this statute, authorized investments are limited, unless otherwise authorized by law
or ordinance, to the local government surplus funds trust fund, money market funds, direct
or unconditionally guaranteed obligations of the United States Government, obligations of
certain governmental agencies, interest bearing time deposits or savings accounts.
2. Receivables and Payables
Activities between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as "due to/from other funds". Any
residual balances outstanding between the governmental activities and business-type
activities are reported in the government-wide fmancial statements as "internal balances."
3. Inventories
Inventories of the general fund are valued at cost on a first-in, first-out (FIFO) method.
Inventories consist of expendable supplies held for consumption. The cost is recorded as
an expenditure at the time individual inventory items are purchased.
Inventories of the Water Fund are valued at lower of cost (determined using the weighted
average) or market and consist of pipes, valves, fittings and meters. The cost is recorded as
an expenditure at the time individual inventory items are put into service.
4. Capital Assets
Capital assets, which include property, plant and equipment, and certain infrastructure
assets acquired prior to the implementation of GASB 34, (e.g., utility plant, roads, bridges,
sidewalks, and similar items), are reported in the applicable governmental or business-type
activities columns in the government-wide fmancial statements. In the case of the initial
capitalization of general infrastructure assets (i.e. those reported by governmental
activities) the Village chose to include all such items regardless of their acquisition date.
The Village was able to estimate the historical cost for the initial reporting of these assets
through analyzing prior audited fmancial statements, notes to the audited fmancial statements
-30-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUIVIlVIARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
d. Assets, Liabilities, and Net Assets or Equity (Continued)
4. Capital Assets (Continued)
and year end workpaper files. Capital assets are defined by the Village as assets with an initial,
individual cost of more than $1,000 and an estimated useful life in excess of one year. Such
assets are recorded at historical cost or estimated historical cost if purchased or constructed.
Donated capital assets are recorded at estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend assets lives are not capitalized. Major outlays for capital assets and
improvements are capitalized as projects are constructed. Interest incurred during the
construction phase of capital assets of business-type activities is included as part of the
capitalized value of the asset constructed. There was no capitalized interest expense in 2007.
Capital assets of the Village are depreciated using the straight line method over the
following estimated useful lives:
R.O. Plant/Wells 40 - 50 years
Buildings 20 - 40 years
Improvements 20 - 30 years
Equipment 2 - 15 years
GASB Statement No. 34 allows municipalities a four year period from the date of
implementation to record the various components of infrastructure assets. The Village
capitalizes current year additions only.
5. Compensated Absences
It is the Village's policy to permit employees to accumulate within certain limits, earned
but unused vacation time and sick leave, which will be paid to employees upon separation
from Village service. All vacation and sick leave pay is accrued when incurred in the
government-wide and proprietary fund fmancial statements. In the governmental funds, a
liability is recorded only for unused vacation and sick leave payouts for employees who
have separated, for example, as a result of employee resignations and retirements. For the
governmental funds, compensated absences are liquidated by the general fund.
6. Long-Term Obligations
In the government-wide fmancial statements, and proprietary fund types in the fund fmancial
statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities, business-type activities, or proprietary fund type
statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred
and amortized over the life of the bonds using the straight-line amortization method. The
result of using this method does not differ significantly from the effective interest method.
Bonds payable are reported net of the applicable bond premium or discount.
-31-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUM1I~.ARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
d. Assets, Liabilities, and Net Assets or Equity (Continued)
6. Long-Term Obligations (Continued)
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of
debt issued is reported as other fmancing sources. Premiums received on debt issuances
are reported as other fmancing sources while discounts on debt issuances are reported as
other fmancing uses. Issuance costs, whether or not withheld from the actual debt
proceeds received, are reported as debt service expenditures.
7. Use of Estimates
The financial statements and related disclosures are prepared in conformity with
accounting principles generally accepted in the United States. Management. is required to
make estimates and assumptions that affect the reported amounts of assets and liabilities,
the disclosure of contingent assets and liabilities at the date of the fmancial statements and
revenue and expenses during the period reported. These estimates include assessing
collectibility of accounts receivable, the pension obligations, and useful lives and
impairment of tangible assets, among others. Estimates and assumptions are reviewed
periodically and the effects of revisions are reflected in the financial statements in the
period they are determined to be necessary. Actual results may differ from those estimates.
8. Fund Equity
In the fund financial statements, governmental funds report reservations of fund balance
for amounts that are not available for appropriation or are legally restricted by outside
parties for use for a specific purpose. Designations of fund balance, where noted, represent
tentative management plans that are subject to change.
NOTE 2. PROPERTY TAXES
Ad valorem taxes are assessed and liened as of January 1~` and billed the following October.
They are due and payable on November l~` of each year or as soon thereafter as the assessment
roll is certified and delivered to the Tax Collector. These taxes are collected by the County and
remitted to the Village. Revenue is recognized at the time monies are received from the County.
All unpaid taxes become delinquent on April 1 following the year in which they are assessed.
Discounts are allowed for early payment at the rate of 4% in the month of November, 3% in the
month of December, 2% in the month of January and 1 % in the month of February. The taxes
paid in March are without discount. At September 30~', unpaid delinquent taxes, if any, are
reflected as a receivable on the balance sheet.
-32-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 2. PROPERTY TAXES (Continued)
Assessed values are established by the Palm Beach County Property Appraiser at approximately
fair market value. The assessed value of property at January 1, 2007, upon which the 2006-2007
levy was based, was approximately $1,017 million.
Under Florida law, the assessment of all properties and the collection of all county, municipal,
school district and special district property taxes are consolidated in the offices of the County
Property Appraiser and County Tax Collector. The Village is permitted by Article 7, Section 8 of
the Florida Constitution to levy taxes up to $10 (10 mills) per $1,000 of assessed valuation for
general governmental services (other than the payment of principal and interest on general
obligation long-term debt). In addition, unlimited amounts may be levied for the payment of
principal and interest on general obligation long-term debt, subject to a limitation on the amount
of debt outstanding. The millage rate to finance general governmental services for the year ended
September 30, 2007 was 6.4980 mills per $1,000 of assessed valuation. -There were no material
delinquent property taxes at September 30, 2007.
NOTE 3. DEPOSITS AND INVESTMENTS
Deposits
In addition to insurance provided by the Federal Depository Insurance Corporation, deposits
are held in qualified public depositories pursuant to Florida Statutes, Chapter 280, Florida
Security for Public Deposits Act. Under the Act, all qualified public depositories are required
to pledge eligible collateral with the Treasurer or another banking institution. In the event of a
failure of a qualified public depository, the remaining public depositories would be
responsible for covering any resulting losses. Accordingly, all deposits are considered insured
or collateralized with securities held by the entity or its agent in the entity's name.
Investments
Florida Statutes authorize the Village to invest surplus funds in the Local Government Surplus
Funds Trust Fund, negotiable direct obligations of or obligations unconditionally guaranteed
by the U.S. Government; interest bearing time deposits in financial institutions located in
Florida and organized under Federal or Florida laws; obligations of the Federal Farm Credit
Banks, the Federal Home Loan Mortgage Corporation, the Federal Home Loan Bank or its
district banks, or obligations guaranteed by the Government National Mortgage Association
and obligations of the Federal National Mortgage Association.
Investments consist of the Local Government Surplus Funds Trust Fund administered by
State Board of Administration and investments held by the Village's retirement funds. The
Local Government Surplus Funds Trust Fund is governed by Ch. 19-7 of the Florida
Administrative Code, which identifies the Rules of the State Board of Administration.
These rules provide guidance and establish the general operating procedures for the
administration of the Local Government Surplus Funds Trust Fund. Additionally, the Office
of the Auditor General performs the operational audit of the activities and investments of the
-33-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Conrinued)
NOTE 3. DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
State Board of Administration. The Local Government Surplus Funds Trust Fund is not a
registrant with the Securities and Exchange Commission (SEC); however, the funds have
adopted operating procedures consistent with the requirements fora 2a-7 fund.
At year end, the Village's investment balances were as follows:
Investment Maturity
(In Years)
Less than
Fair Value 1 Year 1-5 Years
Retirement plan corporate bonds $ 190,345 $ - $ 190,345
Retirement planU.S.Agencies 1,402,177 - 1,402,177
Retirement plan U.S. Treasuries 173,996 - 173,996
$1,766,518 $ - $1,766,518
Interest Rate Risk. The Village does not have a formal investment policy that limits
investment maturities as a means of managing its exposure to market value losses arising
from increasing interest rates. The Village Pension .Board of Trustees has an investment
policy to obtain a reasonable total rate of return to commensurate with the Prudent Investor
Rule and any other applicable statute. The Pension Board employs a professional Investment
Manager to invest the assets of the funds. Within the parameter allowed by the Prudent
Investor Rule, the asset allocation of the funds is solely ~ at the Investment Manager's
discretion, including sector weightings and investment style. Additionally, the Board of
Trustees retain a monitoring service to evaluate and report on a quarterly basis the rate of
return and relative performance of the Funds.
The state investment pool, administered by the State Board of Administration of Florida,
contained certain floating rate notes during the fiscal year and at September 30, 2007, which
were indexed based on the prime rate and/or one and three month LIBOR rates.
Credit Risk The Village's investment policy does not address the requirement of ratings by a
nationally recognized statistical rating organization (NRSRO), i.e. Standard and Poor's and
Moody's Investment Services. The SBA does not have a rating from a NRSRO. However,
investments in US Government Agencies, FHLB, FHLMC and FNMA are rated Aaa and
AAA by Moody and S&P respectively. Investments in Corporate Bonds are rated from Al to
Baaa3 (Moody) and A+ to BBB- (S&P) (see Note 16).
Concentration of Credit Risk. The Pension Board investment policy does not allow for an
investment in any one issuer that is in excess of five percent of total assets, nor shall the
aggregate exceed five percent of the outstanding capital stock of the issuer.
-34-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 3. DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
Custodial Credit Risk -Investments. For an investment, this is the risk that, in the event of the
failure of the counter party, the Village will not be able to recover the value of the investments
or collateral securities that are in the possession of an outside parry. The Village's investment
policy does not address the requirement of custody considering all investments are in outside
investment pools. The Pension Trust investment policy requires all investments be placed in
the custody (custodian) of a Qualified Public Depository, pursuant to Florida Statute 280. The
plan assets are held by a third party custodian, and all securities purchased by, and all
collateral obtained by, the plan shall be properly designated as plan assets. Securities
transactions between abroker-dealer and the custodian involving purchase or sale of securities
by transfer of money or securities must be made on a "delivery vs. payment" basis to insure
that the custodian will have the security or money in hand at conclusion of the transaction.
NOTE 4. RECEIVABLES
Receivables at September 30, 2007 for the government's individual major funds, nonmajor and
fiduciary funds in the aggregate, including the applicable allowance for uncollectible accounts,
are as follows:
Customers billed
Other taxes
Miscellaneous
Grants receivable
Intergovernmental
Franchise fees
Gross receivables
Less allowance for uncollectibles
Net total receivables
Nonmajor Pension
Capital and Other Trust
General Pro'ects Water Funds Funds Total
$112,166 $ - $ 290,834 $ 678 $ - $ 403,678
112,215 - - - - 112,215
33,648 - 1,092 2,405 81,153 118,298
- 54,764 - - - 54,764
77,387 - 4,562 4,143 - 86,092
15,820 - - 61,958 - 77,778
351,236 54,764 296,488 69,184 81,153 852,825
31,479 - (4,500) - - 3( 5,979)
$ 319,757 $ 54,764 $ 291,988 $ 69,184 $ 81,153 $ 816,846
Governmental funds report deferred revenue in connection with receivables for revenues that are
not considered to be available to liquidate liabilities of the current period. Governmental funds
also defer revenue recognition in connection with resources that have been received, but not yet
earned.
-35-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 4. RECEIVABLES (Continued)
At the end of the current fiscal year, various components of unearned revenue reported in the
governmental funds were as follows:
Prepayments on Spring lease (general fund) $119,892
Prepayments on T-Mobile lease (general fund) 42,115
Prepayments on Nextel lease (general fund) 107,750
Licenses and registrations not yet due (general fund) 3,505
Licenses and registrations not yet due (special revenue fund) 42,973
Permits not yet due (general fund) 5,620
$ 321,855
NOTE 5. INTERFiTND TRANSFERS
Interfund transfers during the year ended September 30, 2007 are as follows:
Transfers In
Transfers Out
General fund
Nonmajor governmental
Stormwater utility
Total
Capital
General Projects
Fund Fund
Nonmajor
Governmental
Fund Total
$ - $218,514 $ - $218,514
406,830 - - 406,830
- - 60,300 60,300
$ 406,830 $ 218,514 $ 60,300 $ 685,644
Transfers are used to (1) move excess revenues from special revenue fund as required by bond
covenants, (2) move revenues from the fund with collection authorization to the fund where debt
service principal and interest payments become due.
Interfund Administrative Fee
During the year ended September 30, 2007, the Enterprise Funds remitted $273,150 to the
General Fund for Administrative Management fees. This amount is reflected as
Intragovernmental Services revenue in the General Fund and as management fees, an
operating expense, in the Enterprise Funds.
-36-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 6. RESTRICTED ASSETS
Restricted assets as of September 30, 2007 consist of the following accounts:
Cash Investments Total
Customer deposits $10,000 $ 305,249 $ 315,249
Renewal and replacement - 192,525 192,525
Debt service - 136,019 136,019
Total restricted assets $10,000 $ 633,793 $ 643,793
NOTE 7. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2007 was as follows:
Government activities:
Capital assets not being depreciated:
Land
Construction in progress
Total capital assets not being depreciated
Capital assets being depreciated:
Buildings
Improvements other than buildings
Equipment
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings
Improvements other than buildings
Equipment
Total accumulated depreciation
Total capital assets being depreciated, net
Governmental activities capital assets, net
Beginning Ending
Balance Additions Deductions Balance
$ 402,935 $ - $ - $ 402,935
3,108,899 - (2,146,644) 962,255
3,511,834 - (2,146,644) 1,365,190
4,920,348 2,870,006 - 7,790,354
1,702,105 455,253 - 2,157,358
3,276,305 713,461 (88,547) 3,901,219
9,898,758 4,038,720 (88,547) 13,848,931
(553,671) (158,888) - (712,559)
(355,985) (77,235) - (433,220)
(2,358,127) 297,613 88,547 (2,567,193)
(3,267,783) 533,736 88,547 {3,712,972)
6,630,975 3,504,984 - 10,135,959
$10,142,809
-37-
$ 3,504,984 $ 2,146,644 $11,501,149
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 7. CAPITAL ASSETS (Continued)
Business-type activities:
Capital assets not being depreciated:
Land
Construction in progress
Total capital assets not being depreciated
Capital assets being depreciated:
Buildings
Improvements other than buildings
Equipment
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings
Improvements other than buildings
Equipment
Total accumulated depreciation
Total capital assets being depreciated, net
Business-type activities capital assets, net
Beginning Ending
Balance Additions Deletions Balance
$ 83,335 $ - $ - $ 83,335
1,353,397 - (1,353,397) -
1,436,732 - (1,353,397) 83,335
979,512 - - 979,512
24,577,173 4,800,684 - 29,377,857
1,034,558 102,462 (12,398) 1,124,622
26,591,243 4,903,146 (12,398) 31,481,991
(455,116) (24,488) - (479,604)
(8,031,429) (841,395) - (8,872,824)
(585,832) 100,118 12,398 (673,552)
(9,072,377) (966,001) 12,398 (10,025,980)
17,518,866 3,937,145 - 21,456,011
$18,955,598 $3,937,145 $(1,353,397) $21,539,346
Depreciation expense was charged to functions/programs of the Village as follows:
Governmental activities:
General government $ 82,168
Public safety 355,122
Transportation 30,353
Leisure services 66,093
Total depreciation expense -governmental activities $ 533,736
Business-type activities:
Water $ 881,014
Nonmajor funds 84,987
Total depreciation expense -business-type activities $ 966,001
NOTE 8. CAPITAL LEASES
The Village entered into a capital lease with Banc of America in the amount of $397,922 dated
February 13, 2003 for the financing of a fire pumper. The applicable interest rate is 3.610% and
interest and principal payments are due annually on April 15~'. The lease expires on April 15,
2012.
-3 8-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 8. CAPITAL LEASES (Continued)
The following is a schedule of the future minimum lease payments under this capital lease
arrangement at September 30, 2007:
Fiscal year ending September 30:
2008 $ 46,720
2009 46,720
2010 46,720
2011 46,720
2012 46,720
Total minimum lease payments 233,600
Less amount representing interest 23,312
Present value of future minimum lease payments $ 210,288
The Village entered into a capital lease GMAC in the amount of $30,678 dated December 10, 2003
for the fmancing of a 2004 Chevrolet Tahoe. The applicable interest rate is 6.15% with monthly
principal and interest payments totaling $595.22. The lease expires on December 1, 2008.
The following is a schedule of the future minimum lease payments under this capital lease
arrangement at September 30, 2007:
Fiscal year ending September 30:
2008 $ 7,143
2009 1,191
Total minimum lease payments 8,334
Less amount representing interest 312
Present value of future minimum lease payments $ 8,022
The Village entered into a capital lease with Banc of America in the amount of $152,999 dated
May 26, 2005 for the financing of a 2005 American Lafrance Medic Master ambulance. The
applicable interest rate is 3.78% with monthly principal and interest payments totaling $2,802.55.
The following is a schedule of the future minimum lease payments under this capital lease
arrangement at September 30, 2007.
Fiscal year ending September 30:
2008 $ 33,631
2009 33,631
2010 22,420
Total minimum lease payments 89,682
Less amount representing interest 4,499)
Present value of future minimum lease payments $ 85,183
-39-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 8. CAPITAL LEASES (Continued)
The Village entered into a capital lease in the amount of $136,789 dated April 21, 2006 for the
financing of 800mghz radios for the police department. The applicable interest rate is 4.38% with
monthly principal and interest payments totaling $2,542.70. The lease expires on Apri121, 201 1.
Fiscal year ending September 30:
2008 $ 30,512
2009 5,357
Total minimum lease payments 35,869
Less amount representing interest 1,212)
Present value of future minimum lease payments $ 34,657
NOTE 9. LONG-TERM DEBT
The following is a summary of changes in long-term liabilities of the Village for the year ended
September 30, 2007:
Governmental Activities
Revenue Bonds -1994
The Village issued Improvement Revenue Refunding Bonds, Series 1994, in the amount
of $1,365,000 with an interest rate of 6.15% dated June 24, 1994 and a maturity date of
July 1, 2009. Pursuant to the Bond Resolution, 16-93/94, the Village is obligated to use
Franchise Fees and Occupational Licenses Fees to pay the principal and interest on the
bonds. At September 30, 2007, $259,846 of this issue was outstanding. Remaining
revenues after all principal and interest payments may be used for any lawful purpose.
Debt service requirements to maturity are as follows:
Year ending September 30:
2008
2009
Total
Principal Interest Total
$125,000 $15,981 $140,981
134,846 8,293 143,139
$ 259,846 $ 24,274 $ 284,120
Note Payable
On September 13, 2002, the Village entered into a $5,000,000 loan agreement with Bank
of America, maturing September 2022. The interest rate is 4.28%, with monthly principal
and interest payment totaling $31,042. Proceeds from the note are to be used to finance the
final construction of the public safety facility, to repay existing debt obligations and to
reimburse the Village for prior capital expenditures incurred in connection with the
construction of the public safety facility. The Village pledged Public Service Tax Revenue
and any Designated Revenues to secure its obligation.
-40-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 9. LONG-TERM DEBT (Continued)
Governmental Activities (Continued)
Note Payable (Continued)
Debt service requirements to maturity are as follows:
Principal Interest Total
Year ending September 30:
2008 $ 200,145 $ 172,357 $ 372,502
2009 208,881 163,620 372,501
2010 217,998 154,503 372,501
2011 227,514 144,987 372,501
2012 237,444 135,056 372,500
2013-2017 1,352,040 510,466 1,862,506
2018-2022 1,674,030 188,477 1,862,507
Total $ 4,118,052 $1,469,466 $ 5,587,518
Business-type Activities
Water Revenue Bonds -1998
The Village issued Water Revenue Bonds, Series 1998, in the amount of $7,915,000 with a
varying interest rate of 3.8% to 5.125% dated March 1, 1998 and a maturity date of March 1,
2028. Pursuant to the Bond Resolution, 7-97/98, the Village is obligated to establish and
maintain required reserves as noted in Note 10 -Required Reserves. At September 30,
2007, the outstanding balance was $6,670,000.
Debt service requirements to maturity are as follows:
Principal Interest Total
Year ending September 30:
2008 $ 185,000 $ 333,015 $ 518,015
2009 195,000 324,415 519,415
2010 205,000 315,113 520,113
2011-2015 1,185,000 1,411,285 2,596,285
2016-2020 1,525,000 1,067,921 2,592,921
2021-2025 1,950,000 625,250 2,575,250
2026-2028 1,425,000 112,109 1,537,109
Total 6,670,000 4,189,108 10,859,108
Less unamortized discount (82,105) - (82,105)
$ 6,587,895 $ 4,189,108 $10,777,003
-41-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 9. LONG-TERM DEBT (Continued)
Water Expansion Loan
On June 30, 2004, the Village entered into a $645,170 loan agreement with Bank of America,
with an interest rate of 4.96% per annum, maturing May 1, 2024. Proceeds from the note are
to be used to finance the expansion of the Village water system. Interest on the outstanding
principal balance is paid in arrears, on the first day of each and every May and November,
commencing November 1, 2004. This note will be repaid in 19 installments of principal due
on the first day of each May, commencing May 1, 2005. The final payment of the entire
unpaid principal balance and all accrued and unpaid interest is due on May 1, 2024. The
principal may be prepaid at the option of the Village in whole or in part, on November 1 or
May 1, in which case there shall be no prepayment premium or penalty. As of September 30,
2007, $146,218 has been prepaid on the note.
Debt service requirements to maturity are as follows:
Yeaz ending September 30:
2008
2009
2010
2011
2012
2013-2017
2018-2021
Total
Principal Interest Payments
$ 23,000 $ 20,681 $ 43,681
24,000 19,540 43,540
25,000 19,391 44,391
26,000 18,151 44,151
27,000 16,862 43,862
159,000 62,583 221,583
153.952 19.136 173.088
$ 437,952 $176,344 $ 614,296
Changes in Long-Term Debt
The following is a summary of long-term debt for the year ended September 30, 2007:
Beginning Ending Due Within
Balance Additions Deletions Balance One Year
Governmental activities:
Revenue bonds - 1994 $ 380,000 $ - $ (120,154) $ 259,846 $125,000
Note payable 4,309,827 - (191,774) 4,118,052 200,145
Capital leases 508,887 - (170,737) 338,150 106,243
Compensated absences 413,198 105,245 80,715) 437,728 48,390
$ 5,611,912 $105,245 $ 563,380) $ 5,153,776 $ 479,778
Business-type activities:
Revenue bonds - 1998 $ 6,850,000 $ - $ (180,000) $ 6,670,000 $185,000
Unamortized bond discount (86,015) - 3,910 82,105) -
6,763,985 - (176,090) 6,587,895 185,000
Note payable 469,425 - (31,473) 437,952 23,000
Compensated absences 140,060 28,183 (20,012 148,231 6,500
$7,373,470 $ 28,183 $ 227,575 $7,174,078 $214,500
-42-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 9. LpNGTERM DEBT (Continued)
Changes in Long-Term Debt (Continued)
All governmental compensated absences activity is reported and paid from the general fund.
Defeasance of Long-Term Debt
In a prior year, the Village defeased the 1978 Series $3,915,000 Water Revenue Refunding
Bonds by placing the proceeds from the new bonds in an irrevocable trust to provide for all
future debt service payments on the old bonds. Accordingly, the trust account's assets and the
liability for the defeased bonds are not included in the Village's fmancial statements. The
final payment of $1,905,000 was made on April 1, 2007 and there is no balance remaining at
September 30, 2007.
NOTE 10. REQUIRED RESERVES
The Bond Resolution of the Water Revenue Bonds Series 1998 requires the establishment of the
following accounts:
Account purpose
Construction To accumulate funds for payment of construction costs.
Revenue To collect the entire gross revenues derived from the water system except
investment earnings.
Debt service To accumulate sufficient funds to meet the annual debt service
requirements through transfers from the revenue account.
Operation and maintenance To pay all operating expenses of the system.
Rebate To accumulate funds to meet any possible arbitrage rebate expenses, if
required.
Renewal and replacement To accumulate funds for the purpose of paying for the cost of extensions,
additions to, or the replacement of capital assets of the system.
Reserve To accumulate funds for payment of principal and interest only if funds in
the debt service funds are insufficient.
Rate stabilization To accumulate funds to be used for any lawful purpose including making
deposits in the revenue account.
Impact fees To accumulate impact fee revenue received each fiscal year. To be used
in the event that funds in the revenue account are insufficient to funds the
debt service account.
-43-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 10. REQUIItED RESERVES (Continued)
The reserves for revenue bond retirement and renewal and replacement represent the total of
restricted assets less amounts payable from restricted assets as reported in the water fund. The
Village has established all of the required reserve accounts.
NOTE 11. FLORIDA RETIREMENT SYSTEM
Plan Description
All full time employees hired before January 1, 1996 are eligible to participate in the Florida
Retirement System (FRS), a cost sharing, multiple-employer, public retirement system
controlled by the State Legislature and administered by the State of Florida Department of
Administration, Division of Retirement. The FRS provides retirement and disability benefits,
annual cost of living adjustments and death benefits to plan members and beneficiaries. A
post employment health insurance subsidy is also provided to eligible employees.
Benefits are established by Chapter 121, Florida Statutes and Chapter 22B, Florida
Administrative Code. Amendments to the law can only be made by an act of the Florida
Legislature.
The State of Florida issues a publicly available fmancial report that includes financial
statements and required supplementary information for the FRS. The latest available report
was for the fiscal year ended June 30, 2007. That report may be obtained by writing to the
State of Florida Division of Retirement, Department of Management Services, P.O. Box 9000,
Tallahassee, Florida 32315-9000 or visiting the website at http://dms.myflorida.com.
Funding Policy
The FRS funding policy provides for monthly employer contributions at actuarially
determined rates that, expressed as percentages of annual covered payroll are adequate to
accumulate sufficient assets to pay benefits when due. Level percentage of payroll employer
contribution rates, established by state law, is determined using the entry-age actuarial cost
method. If an unfunded actuarial liability reemerges as a result of future plan benefit changes,
assumption changes, or methodology changes, it is assumed any unfunded actuarial liability
would be amortized over 30 years, using level dollar amounts. Except for gains reserved for
rate stabilization, it is anticipated that future actuarial gains and losses are amortized on a
rolling 10% basis, as a level dollar amount. The contribution rates by job class for the
Village's employees at September 30, 2007 were as follows: regular employees - 8.69%,
special risk employees - 19.76% and senior management - 9.80%. These rates include 1.11
for the employer Health Insurance Subsidy contribution, which is the same for all risk classes
and 0.05% administrative fee from which senior management is exempted.
The Village's contributions to the FRS for the fiscal years ended September 30, 2005, 2006
and 2007 were $139,687, $137,827, and $187,647 respectively, which were equal to the
required contributions for each fiscal year.
-44-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM
The Village maintains asingle-employer, defined benefit pension retirement system. The
retirement system provides benefits to all full time firefighters, as well as any full time police
officers or general employees hired January 1, 1996 or thereafter. In 1999, the Plans were
amended, establishing a separate plan for public safety officers (firefighters and police officers)
and a separate plan for general employees. The retirement system was established by the Village
and is administered by two separate Boards of Trustees (public safety officers and general
employees). The retirement system receives contributions that may not be used to pay the
benefits of all employee classes. Due to this restriction, for financial statement purposes, three
separate plans are shown as pension trust funds. The Village Employees' Retirement System
administers the following plans: The Public Safety Officers' Pension Trust Fund which includes
The Firefighters' Pension Trust Fund (FPTF), and The Police Officers' Pension Trust (PPTF) and
the General Employees' Pension Trust Fund (GPTF).
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Pension Trust Funds
Basis of Accounting
The pension trust funds are reported on the accrual basis of accounting. Plan member and
state contributions are recognized as revenues in the period that the contributions are due.
Employer contributions to each plan are recognized when due and the employer has made a
formal commitment to provide the contributions. Benefits and refunds are recognized
when due and payable in accordance with the terms of the plan.
Method Used to Value Investments
Investments are reported at fair value. Short-term investments are reported at cost which
approximates fair value. Securities traded on a national or international exchange are
valued at the last reported sales price at current exchange rates.
Concentration of Investments
The Plans did not have any single investment of 5% or more of net assets in any one
organization.
PLANDESCRIPTIONAND CONTRIBUTIONINFORMATION
The following descriptions of the Pension Trust Funds are provided for general information
purposes only. Plan members should refer to the appropriate source documents for more
complete information on the plans.
-45-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLANDESCRIPTIONAND CONTRIBUTIONINFORMATION(Continued)
Membership in each plan consisted of the following at September 30, 2007:
Covered group:
Active members
Inactive members
Total
FPTF PPTF GPTF
19 10 30
20 10 30
Benefit provisions and contribution requirements of plan members and the Village are
established, and may be amended, only by the Village Council.
a. Public Safety Officers' Trust Fund
Plan Description
Any firefighter or police officer who completes six or more years of credited service and
attains age 55, or completes 25 years of credited service and attains age 52, is eligible for
normal retirement benefits. The monthly retirement benefit shall be equal to 3% for the
first six (6) years of service, 3.5% for the next four (4) years of service, 4% for the next
five (5) years of service, 3% for the next six (6) years of service, 2% for the next four (4)
years of service and 3% for all years after twenty-five years of service. Early retirement
may be taken after a firefighter or police office attained the age of 50 and has six (6) years
of credited service. In the event of early retirement, benefits are actuarially reduced to take
into account the firefighter or police officer younger age and earlier commencement of
retirement benefits. Such reduction shall not exceed 3% per year. Disability benefits can
be received for total and permanent disabilities as determined by the Board of Trustees. If
the pension is granted, the benefit amount shall be as follows:
If the injury or disease is service connected, the firefighter or police officer shall be entitled
to the greater of (a) or (b):
(a) A monthly pension equal to 42% of his average monthly compensation as of his/her
disability retirement date, or
(b) The accrued normal retirement benefit.
If the injury or disease is not service connected, the firefighter or police officer shall be
entitled to the greater of (a) or (b):
(a) A monthly pension equal to 25% of his average monthly compensation as of his/her
disability retirement date, or
(b) The accrued normal retirement benefit.
-46-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLANDESCRIPTIONAND CONTRIBUTIONINFORMATION(Continued)
a. Public Safety Officers' Trust Fund (Continued)
Plan Description (Continued)
If the firefighter or police officer dies prior to retirement from the Village, his beneficiary
shall receive the following benefit:
(a) Line-of-Duty-Death-Benefit - a pension to the spouse (or children) of 50% of
Average Final Compensation for life.
(b) Non-Line-of- Duty-Death -the spouse of a member with six years of credited service
will receive the actuarial equivalent of the accrued early or normal retirement benefit.
If the firefighter or police officer dies or terminates employment with less than six years of
credited service, he is entitled to a refund of the money he contributed.
Funding Policy
Firefighters are required to contribute 6.1% and Police Officers are required to contribute
5% of their compensation to the plan. The Village contributes the net proceeds of the
excise tax (premium tax) imposed upon casualty and property insurance premiums on
policies written within the Village. The Village is required to contribute an actuarially
determined amount to fund the plan using the aggregate actuarial cost method as approved
by the plans' Board of Trustees. The aggregate method does not separately identify or
amortized the unfunded actuarial liability.
The Firefighters' Pension Fund (part of the Public Safety Officers' Trust Fund) does not
issue a separate stand alone financial statements. Therefore, included below is the
Statement of Fiduciary Net Assets and the Statement of Changes in Fiduciary Net Assets
as of and for the year ended September 30, 2007.
FIREFIGHTERS' PENSION FUND
STATEMENT OF FIDUCIARY NET ASSETS
SEPTEMBER 30, 2007
ASSETS
Investments $ 3,145,280
Accrued interest 11,923
Contributions receivable 69,846
Total assets 3.227.049
LIABILITIES AND NET ASSETS
Accounts payable 8,778
Total liabilities 8,778
Net assets held in trust for pension benefits $ 3,218,271
-47-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VII.LAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLANDESCRIPTIONAND CONTRIBUTIONINFORMATION(Continued)
a. Public Safety Officers' Trust Fund (Continued)
FIREFIGHTERS' PENSION FUND
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FISCAL YEAR ENDED SEPTEMBER 30, 2007
ADDITIONS
Contributions $ 326,872
Investment income, net 391,255
Total additions 718,127
DEDUCTIONS
Pension benefits and refunds 10,543
Operating expenses 37,873
Total deductions 48,416
Net increase 669,711
Net assets held in trust for pension benefits:
Net assets, beginning 2,548,560
Net assets, ending $ 3,218,271
The Police Officers' Pension Fund (part of the Public Safety Officers' Trust Fund) does
not issue a separate stand alone financial statements. Included below are the Statement of
Fiduciary Net Assets and the Statement of Changes in Fiduciary Net Assets as of and for
the year ended September 30, 2007.
POLICE OFFICERS' PENSION FUND
STATEMENT OF FIDUCIARY NET ASSETS
SEPTEMBER 30, 2007
ASSETS
Investments $1,123,130
Accrued interest 4,174
Contribution receivable 3,822
Total assets 1,131,126
LIABILITIES AND NET ASSETS
Accounts payable 3,090
Total liabilities 3,090
Net assets held in trust for pension benefits $1,128,036
-48-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VII.LAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLANDESCRIPTIONAND CONTRIBUTIONINFORMATION(Continued)
a. Public Safety Officers' Trust Fund (Continued)
POLICE OFFICERS' PENSION FUND
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FISCAL YEAR ENDED SEPTEMBER 30, 2007
ADDITIONS
Contributions $ 200,077
Investment income, net 131,768
Total additions 331,845
DEDUCTIONS
Pension benefits and refunds 12,901
Operating expenses 12,654
Total deductions 25,555
Net increase 306,290
Net assets held in trust for pension benefits:
Net assets, beginning 821,746
Net assets, ending $1,128,036
b. General Employees' Pension Trust Fund
Plan Description
Any general employee who attains age 62, or completes 30 years of credited service
regazdless of age, is eligible for normal retirement benefits. The monthly amount of
normal retirement income for a general employee is equal to the number of years of
credited service multiplied by 2% of his average highest compensation. Early retirement
may be taken after a general employee has attained the age of 50 and has six (6) years of
credited service. In the event of eazly .retirement, benefits are actuarially reduced to take
into account the general employee younger age and earlier commencement of retirement
benefits. Such reduction shall not exceed 5% per year. Disability benefits can be received
for total and permanent disabilities as determined by the Board of Trustees. If the pension
is granted, the benefit amount shall be as follows:
-49-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIIZEMENT SYSTEM (Continued)
PLANDESCRIPTIONAND CONTRIBUTIONINFORMATION(Continued)
b. General Employees' Pension Trust Fund (Continued)
Plan Description (Continued)
If the injury or disease is service connected, the general employee shall be entitled to the.
greater of (a) or (b):
(a) A monthly pension equal to 42% of his average monthly compensation as of his
disability retirement date, or
(b) An amount equal to the number of years of his credited service multiplied by 2% of
his average monthly salary based upon his final five years of service.
If the injury or disease is not service connected, the general employee shall be entitled to
the greater of (a) or (b):
(a) A monthly pension equal to 25% of his average monthly compensation based on his
final five (5) years of service, or
(b) An amount equal to the number of years of his credited service multiplied by 2% of
his average monthly salary based upon his final five years of service.
If the general employee dies prior to retirement from the Village, his beneficiary shall
receive an amount equal to the vested pension benefit. A survivor benefit is payable to the
beneficiary starting when the member would have reached retirement age.
If the general employee dies or terminates employment with less than six years of credited
service, he is entitled to a refund of the money he contributed.
Funding Policy
General employees are required to contribute 5% of their compensation to the plan. The
Village is required to contribute the remaining amount to fund the plan using the aggregate
actuarial cost method as approved by the plan's Board of Trustees. The aggregate method
does not separately identify or amortize the unfunded actuarial liability.
The General Employees' Pension Trust Fund does not issue separate stand alone fmancial
statements. Therefore, included below are the Statement of Fiduciary Net assets and the
Statement of Changes in Fiduciary Net Assets as of and for the year ended September 30,
2007.
-50-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLANDESCRIPTIONAND CONTRIBUTIONINFORMATION(Continued)
b. General Employees' Pension Trust Fund (Continued)
GENERAL EMPLOYEES' PENSION TRUST FUND
STATEMENT OF FIDUCIARY NET ASSETS
SEPTEMBER 30, 2007
ASSETS
Cash $ 2,593
Investments 1,014,026
Accrued interest 5,381
Accounts receivable 350
Contributions receivable 7,135
Total assets 1,029,485
LIABILITIES AND NET ASSETS
Accounts payable 2,588
Total liabilities 2,588
Net assets held in trust for pension benefits $1,026,897
GENERAL EMPLOYEES' PENSION TRUST FUND
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FISCAL YEAR ENDED SEPTEMBER 30, 2007
ADDITIONS
Contributions $ 198,463
Investment income, net 98,347
Total additions 296,810
DEDUCTIONS
Pension benefits and refunds 38,425
Operating expenses 29,513
Total deductions 67,938
Net increase 228,872
Net assets held in trust for pension benefits:
Net assets, beginning 798,025
Net assets, ending $1,026,897
-51-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL, STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLAN DESCRIPTIONAND CONTRIB UTION INFORMATION (Continued)
Annual Pension Cost
The Village's 2007 annual pension cost and actual contributions for each plan are shown
below. The required contributions were determined as part of the October 1, 2005 actuarial
valuation for each plan.
Fiscal Year Ending
Firefighters' Retirement System:
September 30, 2005
September 30, 2006
September 30, 2007
Police Officers' Retirement System:
September 30, 2005
September 30, 2006
September 30, 2007
General Employees' Retirement System:
September 30, 2005
September 30, 2006
September 30, 2007
Three-Year Trend Information
Annual Percentage Net Pension
Pension of APC Obligation
Cost APC) Contributed Asset
$ 148,675 113.5% $ (158,017)
169,446 100.5% (158,905)
176,060 105.1% (167,810)
$ 59,912 128.7% $ (91,014)
108,774 98.3% (89,209)
113,012 107.1% (97,246)
$ 96,383 99.5% $ (42,392)
89,226 121.1 % (61,181)
93,072 131.6% (90,558)
Components of Annual Pension Cost and Net Pension Asset
Annual required contribution (ARC)
Interest on net pension obligation (NPO)
Adjustment to ARC
Annual pension cost
Actual contributions
Increase in net pension obligation (asset)
Net pension obligation (asset), beginning
Net pension obligation (asset), ending
Police General
Firefi hg tern, Officers' Employees
$ 171,986
(12,712)
16,786
176,060
184,965
(8,905)
158,905
$ 167,810
$111,243
(7,137)
8,906
113,012
121,049
(8,037)
89,209
$ 97,246
$ 92,042
(4,894)
5,924
93,072
122,449
(29,377)
61,181
$ 90,558
-52-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLANDESCRIPTIONAND CONTRIBUTIONINFORMATION(Continued)
Components of Annual Pension Cost and Net Pension Asset (Continued)
Valuation date
Actuarial cost method
Amortized method
Remaining amortization period
Asset valuation method
Administrative costs
Actuarial assumptions:
Investment rate of return*
Projected salary increase*
*Includes inflation at
Cost of living adjustments
Firefighters Police Officers General Employees
Pension Fund Pension Fund Pension Fund
10/1/2005 10/1/2005 10/1/2005
Aggregate Aggregate Aggregate
(1) (1) (1)
(1) (1) (1)
Fair value Fair value Fair value
Included in calculation Included in calculation Included in calculation
of normal cost of normal cost of normal cost
8% 8% 8%
6% 6% 6%
4% 4% 4%
N/A N/A N/A
(1) When the aggregate actuarial cost method is used, unfunded actuarial liabilities are not identified or
separately amortized; therefore, a schedule of funding progress is not required and has not been provided.
NOTE 13. COMNIITMENTS AND CONTINGENCIES
Long-Term Agreement to Purchase Water
On July 15, 1976, the Village entered into an agreement with Tri-Southern Utilities Company,
Inc. (the agreement was subsequently assumed by the Town of Jupiter) to purchase water for
the Village's water system for a period of 30 years. Rates for water service are based on
wholesale rates. The Village is billed monthly based upon a contracted minimum usage rate
of 1,500,000 gallons per day. Water purchases were approximately $556,562 for the year
ended September 30, 2007. The Bulk Water Agreement terminated on July 15, 2007 and it
was not extended.
Lease Agreements
On December 20, 1994, the Village entered into an Interlocal agreement with Palm Beach
County. Per the agreement, Palm Beach County provided for partial funding, land acquisition
and design and construction of a branch library within Tequesta. Upon completion of the
project, the library was leased to Palm Beach County for 50 years for an annual rent of one
dollar. In the event the Village terminates the lease before the end of 50 years, the Village
must reimburse Palm Beach County a depreciated value using a useful life of 25 years based
on an initial value of $405,000 calculated on a straight-line basis.
-53-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 13. COMMITMENTS AND CONTINGENCIES (Continued)
Contracted Services -Refuse and Recycling Collection
Effective October 1, 1989, the Village entered into a franchise agreement with Nichols
Sanitation, Inc. for curbside solid waste and recycling collection services. On October 14,
1993, the Village amended the franchise agreement. The amendment extended the agreement
for an additional five years commencing October 1, 1994. For consideration of the extension,
the collection rates were reduced. In addition, the Village assessed a 6% franchise fee for
each residential customer, effective October 1, 1994. Nichols Sanitation may also adjust the
curbside and recycling rates beginning October 1, 1995, and each October 1St thereafter based
upon the change in the Consumer Price Index (CPI). Effective October 1, 1999, the existing
agreement was extended through September 30, 2007. Refuse and recycling fees totaled
approximately $300,384 for the year ended September 30, 2007.
Contracted Services - FirelEmergency Medical Service
Effective October 1, 1993, the Village entered into an Interlocal agreement with Jupiter Inlet
Colony for the Village to provide fire protection/emergency medical services for a fee. For
the year ended September 30, 2007, fire protection fees received from Jupiter Inlet Colony
were $190,995.
Construction Commitments
Significant construction commitments as of September 30, 2007 are as follows:
Estimated Estimated
Description
Governmental Funds
Capital Projects Fund:
FEC Project
Expended Cost to Completion
to Date Complete Date
$ 686,244 $ 55,436 Jun-08
NOTE 14. RISK MANAGEMENT
The Village is exposed to various risks of loss related to torts, theft of, damage to and destruction
of assets, errors and omissions, injuries to employees and natural disasters. The Village
purchases commercial insurance to cover the various risks.
During fiscal year 2006/2007 the Village had an appraisal completed by Specialty Properly
Appraisals which resulted in an increase of total insured value by more than forty percent. As the
increase in insurable values resulted in significant premium increases, Village Council directed
staff to increase the property deductible to $100,000 for all perils excluding hurricane/windstorm
damage and to remove properties valued at $100,000 from the property schedule in essence self-
funding losses to these properties. To the best of our knowledge, no claims settlements have
exceeded insurance coverage during the four prior fiscal years.
-54-
VILLAGE OF TEQUE5TA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 14. RISK MANAGEMENT (Continued)
The Village remains insured under a retrospectively rated policy for workers' compensation
coverage with statutory limits. The plan is written through a trust fund comprised of Florida
governmental entities. Premiums are based upon risk class and remuneration of covered
employees adjusted by an experience modification factor which includes three prior years of
claims history. At the end of each fiscal year, the plan is audited and the Village can either
receive a return of premium or be required to pay additional premium base upon actual versus
estimated payroll. Should a deficit develop in the trust fund after excess insurance recoveries, the
Village shall thereafter be responsible for its individual claims costs.
NOTE 15. JOINT VENTURE
The Village, in conjunction with six other municipalities, organized a consortium to provide mutual
fire and emergency aid. The consortium is known as the Northern Area Mutual Aid Consortium
(NAMAC). During 1999, the consortium purchased equipment and supplies as well as collected
contributions. The consortium does not issue separate fmancial statements. The Village has not
been obligated to contribute any funds to the consortium since its inception in 1999.
NOTE 16. SUBSEQUENT EVENTS
Local Government Surplus Trust Fund Investment Pool
As discussed in Note 3, September 30, 2007, the Village had $9,666,230 invested in the State
Board of Administration's Local Government Surplus Funds Trust Fund Investment Pool
(Pool). On November 29, 2007, the State Board of Administration implemented a temporary
freeze on the assets held in the Pool due to an unprecedented amount of withdrawals from the
Fund coupled with the absence of market liquidity for certain securities within the Pool The
significant amount of withdrawals followed reports that the Pool held asset-backed
commercial paper that was subject to sub prime mortgage risk. On December 4, 2007, based
on recommendations from BlackRock, an independent investment advisor, the State Board of
Administration restructured the Pool into two separate pools. Pool A consisted of top-tier
money market assets of the highest quality, while Pool B contained assets that either defaulted
on a payment, paid more slowly than expected, or had significant credit or liquidity risk. Pool
A represented about 86%, or approximately $12 billion, of the pool assets and Pool B was
approximately $2 billion (or 14% of the pool assets). On December 21, 2007, Standard and
Poor's, Ratings Services assigned its "AAAm" principal stability fund rating to Pool A. At the
time of the restructuring,- all current pool participants had their existing balances
proportionately allocated into Pool A and Pool B.
Currently, Pool A participants may withdraw 37% of their balance or $4 million, whichever is
greater, without penalty. Withdrawals from Pool A in excess of the above limit are subject to a 2%
redemption fee. New investments in Pool A are not subject to the redemption fee or withdrawal
restrictions. Future withdrawal provisions from Pool A will be subject to further evaluation based
on the maturities of existing investments and the liquidity requirements of the Pool.
-55-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 16. SUBSEQUENT EVENTS (Continued)
Local Government Surplus Trust Fund Investment Pool (Continued)
Currently, Pool B participants are prohibited from withdrawing any amount from the Pool and
a formal withdrawal policy has not yet been developed. However, cash holdings are being
distributed to participants as they become available from maturities, sales, interest and
principal payments as a transfer from Pool B to Pool A participant accounts in proportion to
original adjusted Pool B balances. To date, approximately $570 million has been transferred
from Pool B to Pool A, and this is not subject to withdrawal restrictions. The most current
holdings report, dated February 18, 2008, indicates an approximately $1.5 billion par value on
Pool B assets. Market valuations of the assets held in Pool B are not readily available. In
addition, full realization of the principle value of Pool B assets is not readily determinable.
Between December 2007 and January 2008, the Village of Tequesta transferred $5,000,000
from the State Board of Administration to Bank of America. According to SBA Pool
Statements as at January 31, 2008, the Village had $3,207,547 and $1,275,128 invested in
Pool A and B, respectively. Additional information regarding the Local Government Surplus
Funds Trust Fund may be obtained from the State Board of Administration.
Property Tax Amendment
On January 29, 2008, the Florida electorate approved an amendment to the Florida
Constitution relative to property taxation. This amendment (referred to as Amendment 1) was
placed on the ballot by the Florida Legislature at a special session held during 2007. With
respect to homesteaded properly, Amendment 1 increases the current $25,000 homestead
exemption by an additional $25.000 (for property values between $50,000 - $75,000), except
for school district taxes. Since the new $25,000 homestead exemption does not apply to
school district taxes, this effectively amounts to a $15,000 increase to the existing homestead
exemption, resulting in an estimated annual savings of $240 for the average homeowner.
Amendment 1 also allows property owners to transfer (make portable) up to $500,000 of their
Save Our Homes benefits to their next homestead when they move. Save Our Homes became
effective in 1995 and limits (caps) the annual increase in assessed value for homesteaded
properly to three percent (3%) or the percentage change in the Consumer Price Index,
whichever is less.
With respect to non-homesteaded property (businesses, industrial property, rental properly,
second homes, etc.), Amendment 1 limits (caps) the annual increase in assessed value to ten
percent (10%), except for school district taxes. The Amendment also provides a $25,000
exemption for tangible personal property.
Amendment 1 becomes effective on October 1, 2008, with the exception of the ten percent
(10%) assessment cap on non-homesteaded property, which becomes effective on January 1,
2009.
-56-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 16. SUBSEQUENT EVENTS (Continued)
Property Tax Amendment (Continued)
Based on information received from the Palm Beach County Property Appraiser's Office, the
estimated annual loss of property tax revenues for our Village from the additional homestead
exemption and the $25,000 exemption for tangible personal property is approximately
$290,000. At present, there is no accurate way to determine the impact of the portability and
assessment cap on non-homesteaded property in terms of potential loss of property tax
revenues.
NOTE 17. GASB 45 Accounting and financial Reporting by Employers for Postemployment Benefits
Other Than Pensions
Per GASB 45: "Employers that participate in single-employer or agent multiple-employer defined
benefit OPEB plans (sole and agent employers) are required to measure and disclose an amount
for annual OPEB cost on the accrual basis of accounting. Annual OPEB cost is equal to the
employer's annual required contribution to the plan (ARC), with certain adjustments if the
employer has a net OPEB obligation for past under-or over contributions." In compliance with
Florida Statute 112.0801 Group insurance; participation. by retired employees. The Village of
Tequesta offers to retirees and their eligible dependents the same health and hospitalization
insurance coverage as is offered to active employees at a premium cost of no more than. the
premium cost applicable to active employees. As allowed by this statute, the cost is paid entirely
by the retired employees. Subsequently, under GASB 45, there is no annual OPEB cost and no
net OPEB obligation to report for fiscal year ending September 30, 2007.
-57-
REQUIRED SUPPLEMENTAL INFORMATION
VILLAGE OF TEQUESTA, FLORIDA
REQUIltED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2007
Revenues:
Ad valorem taxes
Other taxes
Intergovernmental
Charges for services
Intragovernmental
Grants and contributions
Licenses and permits
Investment earnings
Fines and forfeitures
Miscellaneous
Rents and royalties
Impact fees
Total revenues
Expenditures:
Current:
General government
Public safety
Transportation
Leisure services
Capital outlay
Debt service:
Principal
Interest
Fiscal charges
Total expenditures
Excess (deficiency) of revenues over expenditures
Other fmancing sources (uses):
Transfers in
Transfers out
Appropriated fund balance
Miscellaneous/contingency
Total other financing sources (uses)
Net change in fund balance
Variance
with Final
Budget -
Budgeted Amounts Actual Positive
Ori final Final Amounts e ative
$ 6,061,684 $ 6,064,684 $ 6,139,007 $ 74,323
862,300 1,010,182 1,067,523 57,341
819,690 819,690 815,828 (3,862)
616,190 618,204 526,922 (91,282)
273,150 273,150 273,150 -
1,620 55,368 35,634 (19,734)
227,700 227,700 401,704 174,004
123,000 123,000 377,210 254,210
25,000 91,360 111,080 19,720
13,800 39,727 52,899 13,172
108,620 108,620 108,628 8
8,470 8,470 3,858 (4,612)
9,141,224 9,440,155 9,913,443 473,288
1,501,755 1,540,096 1,371,149 168,947
5,434,830 5,582,755 5,291,398 291,357
1,018,532 943,931 736,436 207,495
474,950 535,771 495,767 40,004
197,360 564,764 532,703 32,061
313,120 379,480 362,511 16,969
215,190 214,854 199,721 15,133
5,800 6,136 6,135 1
9,161,537 9,767,787 8,995,820 771,967
(20,313) (327,632) 917,623 1,245,255
406,830 406,830 406,830 -
(218,514) (218,514) (218,514) -
- 151,781 - (151,781)
168,003) 12,465 - 12,465
20,313 327,632 188,316 139,316)
$ - $ - $1,105,939 $1,105,939
See note to budgetary comparison schedule.
-58-
VILLAGE OF TEQUESTA, FLORIDA
NOTE TO THE BUDGETARY COMPARISON SCHEDULE
SEPTEMBER 30, 2007
NOTE 1. BUDGETS AND BUDGETARY ACCOUNTING
Formal budgetary integration is employed as a management control device during the year for the
General Fund, Special Revenue Fund and Capital Projects Funds. All budgets are legally enacted
through passage of an ordinance.
Budgets are adopted on a basis consistent with accounting principles generally accepted in the
United States. For budgeting purposes, current year encumbrances are not treated as
expenditures.
The Village follows these procedures in establishing the budgetary data reflected in the financial
statements:
i) Prior to September 1St, the Village Manager submits to the Village Council a proposed
operating budget for the fiscal year commencing the following October 1St. The operating
budget includes proposed expenditures and the means of financing them.
2) Public hearings are conducted to obtain taxpayer comments.
3) Prior to October 1St, the budget is legally enacted through passage of an ordinance.
Changes or amendments to the total budgeted fund expenditures must be approved by the Village
Council. Management may make unlimited interfunctional transfers within a fund without
seeking Council approval. However, in order to make the most effective use of the budgetary
process, it is the policy of the Village to make as few budget adjustments as possible. Budget
amendments were not material in relation to original appropriations. During the year,
supplemental appropriations of approximately $316,000 were made. Appropriations are legally
controlled at the fund level and expenditures may not legally exceed budgeted appropriations at
that level. Appropriations lapse at year end.
-59-
VILLAGE OF TEQUESTA, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF EMPLOYER CONTRIBUTIONS
FISCAL YEAR ENDED SEPTEMBER 30, 2007
Fiscal
Year
Annual
Required
Contribution
Village State Percentage
Contribution Contribution Contributed
Firefighters' Pension Fund
2002
2003
2004
-2005
2006
2007
Police Officers' Pension Fund
2002
2003
2004
2005
2006
2007
General Employees' Pension Fund
2002
2003
2004
2005
2006
2007
$ 59,836 $ 66,261 $ 81,917 247.6%
114,382 76,957 59,123 119.0%
139,739 82,036 56,536 99.2%
145,344 115,072 92,522 142.8%
165,394 102,194 86,714 114.2%
171,986 252,967 (1) 147.1%
$ 18,199 $ - $ 81,854 449.8%
38,594 15,906 53,639 180.2%
56,225 20,391 67,950 157.1%
58,489 49,002 65,700 196.1%
106,969 70,169 65,700 127.0%
111,243 161,852 (1) 145.5%
$ 41,607 $ 48,124 N/A 115.7%
64,723 69,869 N/A 108.0%
92,218 74,110 N/A 80.4%
95,949 98,658 N/A 102.8%
88,512 108,015 N/A 122.0%
92,052 122,449 N/A 133.0%
(1) State conributions of $136,052 for firefighters and $73,932 for police officers are included in the Village
contributions for fiscal 2007.
-60-
Page Intentionally Left Blank
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
NONMAJOR GOVERNMENTAL FUNDS
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Special revenue funds are used to account for specific revenues that are legally restricted
to expenditures for particular purposes.
Special Revenue Fund -This fund was established to collect and accumulate certain
revenues from Franchise fees and Occupational Licenses to pay principal and interest on
the 1994 Series Improvement Revenue Refunding Bonds.
Special Law Enforcement Trust Fund -This fund is used to account for forfeitures
received by the Police Department.
Capital Improvement Fund -This fund is used to account for the maintenance and
upkeep of the Village's general infrastructure (such as roads, bridges, sidewalks and
storm water drainage systems) and streetscape beautification projects.
VILLAGE OF TEQUESTA, FLORIDA
COMBINIIIG BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2007
ASSETS
Assets:
Cash and cash equivalents
Investments
Accounts receivable
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Retainage payable
Deferred revenue
Total liabilities
Fund balances:
Reserved for debt service
Unreserved, undesignated reported in:
Special revenue fund
Capital improvement fund
Special law enforcement fund
Total fund balances
Total liabilities and fund balances
Total
Special Special Law Capital Nonmajor
Revenue Enforcement Improvement Governmental
Fund Fund Fund Funds
$ 12,919 $ - $ 577 $ 13,496
450,823 20,846 102,572 574,241
61,958 - - 61,958
$ 525,700 $ 20,846 $ 103,149 $ 649,695
$ - $ - $ - $ -
42,974 - - 42,974
42,974 - - 42,974
140,990 - - 140,990
341,736 - - 341,736
- - 103,149 103,149
- 20,846 - 20,846
482,726 20,846 103,149 606,721
$ 525,700 $ 20,846 $ 103,149 $ 649,695
-61-
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2007
Operating revenues:
Franchise fees
Licenses and permits
Investment earnings
Total revenues
Operating expenditures:
Capital outlay
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances, beginning
Fund balances, ending
Total
Special Special Law Capital Nonmajor
Revenue Enforcement Improvement Governmental
Fund Fund Fund Funds
$ 477,711 $ - $ - $ 477,711
89,605 - - 89,605
26,333 1,273 - 27,606
593,649 1,273 - 594,922
- - 35,870 35,870
120,154 - - 120,154
23,216 - - 23,216
143,370 - 35,870 179,240
450,279 1,273 (35,870) 415,682
60,300 - - 60,300
(406,830) - - (406,830)
34( 6,530) - - (346,530)
103,749 1,273 (35,870) 69,152
378,977 19,573 139,019 537,569
$482,726 $ 20,846 $ 103,149 $ 606,721
-62-
VILLAGE OF TEQUE5TA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
SPECIAL REVENUE FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2007
Revenues:
Franchise fees
Licenses and permits
Unrestricted investment earnings
Total revenues
Operating expenditures:
Debt service:
Principal
Interest
Total expenditures
Excess of revenues over expenditures
Other financing sources:
Transfers in
Proceeds from notes payable
Total other financing sources (uses)
Net change in fund balance
Budgeted Amounts
Original Final
Variance
with
Final
Budget -
Actual Positive
Amounts e ative
$ 348,000 $ 348,000 $ 477,711 $ 129,711
131,000 131,000 89,605 (41,395)
10,900 10,900 26,333 15,433
489,900 489,900 593,649 103,749
120,000 120,154 120,154 -
23,370 23,216 23,216 -
143,370 143,370 143,370 -
346,530 346,530 450,279 103,749
60,300 60,300 60,300 -
406,830 (406'830) (406'830) -
346,530 (346,530) 346,530) -
$ - $ - $103,749 $ 103,749
-63-
VILLAGE OF TEQUESTA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
SPECIAL LAW ENFORCEMENT TRUST FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2007
Bud~;eted Amounts
Original Final,
Revenues:
Unrestricted investment earnings $ - $
Total revenues -
Operating expenditures -
Net change in fund balance $ - $
Variance
with
Final
Budget -
Actual Positive
Amounts e ative
- $ 1,273 $ 1,273
- 1,273 1,273
- $ 1,273 $ 1,273
-64-
VILLAGE OF TEQUESTA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
CAPITAL IMPROVEMENT FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2007
Revenues
Expenditures:
Capital outlay
Total expenditures
Deficiency of revenues over expenditures
Other financing sources (uses):
Appropriated fund balance
Total other financing sources (uses)
Net change in fund balance
Budgeted Amounts
Original Final
Variance
with
Final
Budget -
Actual Positive
Amounts e ative
$ - $ - $ - $ -
36,000) (36,000) 35,870) 130
36,000) (36,000) (35,870 130
36,000 (36,000 35,870) 130
36,000 36,000 - (36,000)
36,000 36,000 - (36,000)
$ - $ - $ (35,870) $ (35,870)
-65-
Page Intentionally Left Blank
NONMAJOR ENTERPRISE FUNDS
NONMAJOR ENTERPRISE FUNDS
Stormwater Fund -This fund is used to account for the drainage and stormwater
collection for the Village.
Refuse and Recycling Fund -This fund is used to account for the fees charged for solid
waste and recyclable material collection.
VII,LAGE OF TEQUEsTA, FLORIDA
COMBINING STATEMENT OF NET ASSETS
NONMAJOR ENTERPRISE FUNDS
SEPTEMBER 30, 2007
ASSETS
Current assets:
Cash and cash equivalents
Investments
Receivables, net
Total current assets
Non-current assets:
Capital assets being depreciated, net
Total noncurrent assets
Total assets
LIABILITIES
Cun-ent liabilities:
Accounts payable
Accrued liabilities
Total current liabilities
Long-term liabilities:
Compensated absences
Total long-term liabilities
Total liabilities
Total
Nonmajor
Stormwater Refuse & Enterprise
Utili Recycling Funds
$ 1,322 $ 253 $ 1,575
165,792 187,101 352,893
4,542 2,683 7,225
171,656 190,037 361,693
1,787,265 - 1,787,265
1,787,265 - 1,787,265
1,958,921 190,037 2,148,958
278 25,522 25,800
880 - 880
1,158 25,522. 26,680
1,254 - 1,254
1,254 - 1,254
2,412 25,522 27,934
NET ASSETS
Net assets:
Invested in capital assets, net of related debt
Unrestricted
Total net assets
1,787,265 - 1,787,265
169,244 164,515 333,759
$1,956,509 $164,515 $2,121,024
-66-
VII.LAGE OF TEQUESTA, FLORIDA
COMBINING STAT'EMENT' OF REVENUES, E~'ENSES AND CHANGES IN NET ASSETS
NONMAJOR ENTERPRISE FUNbS
FISCAL YEAR ENDED SEPTEMBER 30, 2007
Total
Nonmajor
Stormwater Refuse & Enterprise
Utili Recycling Funds
Operating revenues:
Charges for services $ 303,273 $ 285,916 $ 589,189
Total operating revenues 303,273 285,916 589,189
Operating expenses:
.Administra#ion - 463 463
Stormwater 103,722 - 103,722
Depreciation 84,987 - 84,987
Purchased services - 300,384 300,384
Management services - 5,500 5,500
Total operating expenses 188,709 306,347 495,056
Operating income (loss) 114,564 20 431 94,133
Non-operating revenues:
Investment earnings (interest) 27,516 16,b93 44,209
Total non-operating revenues 27,516 16,693 44,209
Income (loss) before transfers 142,080 (3,738) 138,342
Transfers out 60 300 - 60 300
Change in net assets 81,780 (3,738} 78,042
Net assets, beginning 1,874,729 168,253 2,042,982
Ne# assets, ending $1,956,509 $ 164,515 $2,121,024
-67-
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2007
Cash flows from operating activities:
Cash received from customers, governments and other funds
Cash paid to suppliers
Cash paid to employees
Net cash provided by operating activities
Cash flows from non-capital financing activities:
Transfers to other funds
Net cash used in non-capital fmancing activities
Cash flows from capital and related fmancing activities:
Acquisition and construction of capital assets
Net cash used in capital and related fmancing activities
Cash flows from investing activities:
Purchases of investments
Interest received on investments
Net cash provided by (used in) investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning
Cash and cash equivalents, ending
Adjustments to reconcile operating income to net cash
provided by operating activities:
Operating income (loss)
Depreciation
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable
Other assets
Increase (decrease) in accounts payable and accrued liabilities
Increase in long-term compensated absences
Net cash provided by operating activities
Total
Nonmajor
Stormwater Refuse & Enterprise
Utili Recycling_ Funds
$ 303,599 $ 285,454 $ 589,053
(63,066) (280,825) (343,891)
43,547) - 4( 3,547)
196,986 4,629 201,615
(60,300)
60,300
(522,542
522,542
_ 60,300
60,300
_ 522,542
_ 522,542
359,061
27,516
386,577
721
(22,372) 336,689
16,693 44,209
(5'679) 380,898
(1,050) {329)
601 1,303 1,904
$ 1,322 $ 253 $ 1,575
$ 114,565 $ (20,431) $ 94,134
84,987 - 84,987
326 (462) (136)
28 - 28
(3,918) 25,522 21,604
998 - 998
$ 196,986 $ 4,629 $ 201,615
-68-
Page Intentionally Left Blank
FIDUCIARY FUNDS
FIDUCIARY FUNDS
Firefighters' Pension Trust Fund -This fund accounts for the accumulation of
resources and for contributions and benefits of the firefighter employees.
Police Officers' Pension Trust Fund -This fund accounts for the accumulation of
resources and for contributions and benefits of the police employees.
General Employees' Trust Fund -This fund accounts for the accumulation of
resources and for contributions and benefits for the general employees of the Village.
VILLAGE OF TEQUESTA, FLORIDA
COMB1I~iING STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
SEPTEMBER 30, 2007
Police General
Firefighters' Officers' Employees'
Pension Pension Pension Total
ASSETS
Cash and cash equivalents
Inveshnents:
Corporate stocks
Corporate bonds
Government backed assets
Non-government MBS/CMA/ABS
Accounts receivable
Contributions receivable
Accrued interest receivable
Total assets
$ 131,873 $ 47,090 $ 94,237 $ 273,200
1,880,956 671,660 585,319 3,137,935
73,572 26,271 90,501 190,344
979,756 349,856 246,561 1,576,173
79,123 28,253 - 107,376
- - 350 350
69,846 3,822 7,135 80,803
11,923 4,174 5,381 21,478
3,227,049 1,131,126 1,029,484 5,387,659
LIABILITIES AND NET ASSETS
Accounts payable
Total liabilities
8,778 3,090 2,588 14,456
8,778 3,090 2,588 14,456
Net assets held in trust for pension benefits
$3,218,271 $1,128,036 $1,026,896 $5,373,203
-69-
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2007
ADDTITONS
Contributions:
Employer
Employee
Total contributions
Investment income
Net appreciation in fair value of investments
Investment earnings
Less investment expenses
Net investment income
Total additions
DEDUCTIONS
Pension benefits and refunds
Operating expenses
Total deductions
Net increase
Net assets held in trust for pension benefits:
Net assets, beginning
Police General
Firefighters' Officers' Employees'
Pension Pension Pension Total
$ 252,967 $ 161,852 $ 122,449 $ 537,268
73,905 38,226 76,014 188,145
326,872 200,078 198,463 725,413
283,784 95,516 67,191 446,491
107,470 36,252 31,155 174,877
391,254 131,768 98,346 621,368
25,099 8,403 12,694 46,196
366,155 123,365 85,652 575,172
693,027 323,443 284,115 1,300,585
10,543 12,901 38,425 61,869
12,774 4,251 16,819 33,844
23,317 17,152 55,244 95,713
669,710 306,291 228,871 1,204,872
2,548,562 821,745 798,026 4,168,333
Net assets, ending $ 3,218,272 $1,128,036 $1,026,897 $ 5,373,205
-70-
STATISTICAL SECTION
STATISTICAL SECTION
This part of the Village of Tequesta's Comprehensive Annual Financial Report presents detailed information
as a context for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the Village overall financial health.
Contents
Page
Financial Trends
These schedules contain trend information to help the reader understand how the Village's financial
performance and well-being have changed over time. 71-73
Revenue Capacity
These schedules contain information to help the reader assess the Village most significant local
revenue source, the property tax. 74-78
Debt Capacity
These schedules present information to help the reader assess the affordability of the Village current
levels of outstanding debt and the Town's ability to issue additional debt in the future 79-88
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the Village's financial activities take place. 89-90
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the
information in the Village's financial report relates to the services the Village provides and the
activities it performs. 91-92
Sources: Unless other wise noted, the information in these schedules is derived from the
Comprehensive Annual Financial Reports for the relevant year.
VILLAGE OF TEQUESTA, FLORIDA
NET ASSETS BY COMPONENT
LAST FIVE FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
2003 2004 2005 2006 2007
Governmental activities:
Invested in capital assets, net of related debt $ 2,209,191 $ 921,889 $ 1,788,749 $ 4,515,096 $ 6,679,855
Restricted - - - 143,370 140,990
Unrestricted 4,423,513 4,947,838 6,926,208 5,570,447 5,402,774
Total governmental activities net assets $ 6,632,704 $ 5,869,727 $ 8,714,957 $10,228,913 $12,223,619
Business-type activities:
Invested in capital assets, net of related debt $10,561,209 $ 9,602,911 $10,815,151 $11,722,188 $14,513,500
Restricted 317,193 322,818 317,102 396,369 328,544
Unrestricted 4,843,781 5,901,624 4,604,463 4,867,905 3,046,229
Total business-type activities net assets $15,722,183 $15,827,353 $15,736,716 $16,986,462 $17,888,273
Primary government:
Invested in capital assets, net of related debt $12,770,400 $10,524,800 $12,603,900 $16,237,284 $21,193,355
Restricted 317,193 322,818 317,102 539,739 469,534
Unrestricted 9,267,294 10,849,462 11,530,671 10,438,352 8,449,003
Total governmental activities net assets $22,354,887 $21,697,080 $24,451,673 $27,215,375 $30,111,892
Note: The Village began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003.
-71-
VILLAGE OF TEQUESTA, FLORIDA
CHANGES IN NET ASSETS
LAST FIVE FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Expenses:
Governmental activities:
General government
Public safety
Transportation
Leisure services
Interest on long-term debt
Total governmental activities expenses
Business-type activities:
Water
Stormwater
Refuse and recycling
Community development
Total business-type activities expenses
Total primary government program expenses
Program revenues:
Governmental activities:
Charges for services:
General government
Public safety
Transportation
Leisure services
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business-type activities:
Charges for services:
Water
Stomtwater
Refuse and recycling
Community development
Operating grants and contributions
Capital grants and contributions
Total business-type activities program revenues
2003 2004 2005 2006 2007
$ 1,299,812 $ 1,105,741 $ 1,361,013 $ 1,402,535 $ 1,391,654
474,134 4,138,374 4,691,063 5,577,243 5,634,834
3,649,803 804,523 656,158 837,441 766,226
385,192 458,659 605,745 756,224 559,583
277,855 262,479 248,728 243,871 229,074
6,086,796 6,769,776 7,562,707 8,817,314 8,581,371
3,881,752 3,975,766 4,026,027 4,187,257 4,139,784
278,442 155,537 142,788 198,993 188,708
229,460 252,933 260,715 270,887 306,348
593,105 513,101 - - -
4,982,759 4,897,337 4,429,530 4,657,137 4,634,840
$11,069,555 $11,667,113 $11,992,237 $13,474,451 $ 13,216,211
$ 352,901 $ 439,646 $ 260,647 $ 270,137 $ 278,215
477,041 538,056 1,040,427 1,121,642 1,006,947
63,438 42,430 4,410 57,261 54,364
56,517 43,945 515,438 365,183 20,350
- - - 535,000 54,764
949,897 1,064,077 1,820,922 2,349,223 1,414,640
4,082,459 3,931,562 4,037,674 4,090,268 3,850,508
297,843 303,450 298,188 301,993 303,273
242,901 248,252 277,589 283,821 285,917
628,068 348,511 - - -
- - - 42,471 7,827
- - 119,944 484,000 430,000
5,251,271 4,831,775 4,733,395 5,202,553 4,877,525
Total primary government program revenues
Net (expense) revenue:
Governmental activities
Business-type activities
Total primary government net expense
$ 6,201,168 $ 5,895,852 $ 6,554,317 $ 7,551,776 $ 6,292,165
$ (5,136,899) $ (5,705,699) $ (5,741,785) $ (6,468,091) $ (7,166,731)
268,512 (65,562) 303,865 545,416 242,685
$ (4,868,387) $ (5,771,261) $ (5,437,920) $ (5,922,675) $ (6,924,046)
-72-
VILLAGE OF TEQUESTA, FLORIDA
CHANGES IN NET ASSETS
(Continued)
LAST FIVE FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
General revenues and other changes in net assets
Governmental activities:
Taxes:
Property taxes
Other taxes
Franchise fees based on gross receipts
Intergovernmental
Unrestricted Investment earnings
Miscellaneous revenues
Gain (loss) on sale of capital assets
Transfers
Total governmental activities
Business-type activities:
Unrestricted Investment earnings
Miscellaneous revenues
Gain on sale of capital assets
Transfers
Total business-type activities
Total primary government
Change in net assets:
Governmental activities
Business-type activities
Total primary government
2003 2004 2005 2006 2007
$3,392,623 $3,781,095 $4,494,713 $5,166,754 $6,139,007
1,093,877 1,089,781 1,084,827 1,087,759 1,157,128
350,423 372,212 367,778 419,929 477,711
520,921 558,069 622,457 679,001 815,828
89,532 79,483 214,588 392,961 404,816
123,740 83,126 641,901 173,362 106,647
6,400 (1,012,584) - 1,981 -
7,847 (8,460 710,151 60,300 60,300
5,569,669 4,942,722 8,136,415 7,982,047 9,161,437
70,706 75,846 164,163 280,665 321,718
10,917 82,576 151,487 479,145 397,708
681,912 3,850 (710,151) 4,820 -
7,847 8,460 - (60,300 60,300)
771,382 170,732 394,501 704,330 659,126
6,341,051 5,113,454 7,741,914 8,686,377 9,820,563
432,770 (762,977) 2,394,630 1,513,956 1,994,706
1,039,894 105,170 90,636 1,249,746 901,811
$1,472,664 $ (657,807) $2,303,994 $2,763,702 $2,896,517
Note: The Village began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003.
-73-
VILLAGE OF TEQUESTA, FLORIDA
PROGRAM REVENUES BY FUNCTION/PROGRAM
LAST FNE FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
FunctionlProgram
Governmental activities:
General government
Public safety
Transportation
Leisure services
Subtotal governmental activities
Business-type activities:
Water
Community development
Stormwater
Refuse and recycling
Subtotal business-type activities
Total primary government program revenues
Program Revenues
2003 2004 2005 2006 2007
$ 352,902 $ 439,646 $ 260,647 $ 605,137 $ 278,21 S
S33,SS8 582,001 1,OS8,235 1,145,871 1,006,947
42,430 497,630 305,691 -
63,438 4,410 292,524 54,364
949,898 1,064,077 1,820,922 2,349,223 1,339,526
4,082,459 3,931,562
628,068 348,511
297,843 303,450
242,901 248,252
S,2S 1,271 4,831,775
$6,201,169 $S,89S,8S2
4,1 S 7,618
298,188
277,589
4,733,395
$ 6,SS4,317
4,616,739 3,8SO,S08
301,993 303,273
283,821 285,917
5,202,SS3 4,439,698
$ 7,SS 1,776 $ 5,779,224
Note: In fiscal year 2005 Community Development was closed as a business-type function/program and all related activates
is now accounted for as a governmental program/activity.
Note: The Village began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003.
-74-
VILLAGE OF TEQUESTA, FLORIDA
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
General fund:
Reserved
Unreserved
Total general fund
1998 1999 2000
2001 2002 2003 2004 2005 2006 2007
All other governmental funds:
Reserved
Unreserved, reported in:
Capital projects funds
Special revenue funds
Capital Improvement fund
Special Law Enforcement fund
$ 85,479 $ 201,546 $ 196,217 $ 202,585 $ 146,557 $ 43,745 $ 50,509 $ 56,759 $ 176,410 $ 47,493
1,201,311 1,728,185 2,878,834 2,656,696 2;943,229 3,170,436 3,718,380 3,424,408 3,221,390 4,456,247
1,286,790 1,929,731 3,075,051 2,859,281 3,089,786 3,214,181 3,768,889 3,481,167 3,397,800 4,503,740
114,957 122,627 267,549 122,627 1,030,617 155,645 341,722 823,675 143,370 196,426
173,018 230,631 80,781 1,091,185 1,557,927 1,069,670 889,395 2,519,033 1,599,416 354,736
48,871 75,874 118,738 141,912 175,980 237,858 15,692 17,901 255,179 341,736
- - - - - - - - - 103,149
- - - - - - - - - 20,846
$ 336,846 $ 429,132 $ 467,068 $1,355,724 $2,764,524 $1,463,173 $1,246,809 $3,360,609 $1,997,965 $1,016,893
Note:
In fiscal year 2007, started a breakdown of unreserved of other governmental funds.
-75-
VILLAGE OF l EQUESTA,I+LORIDA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
1998 1999 2000 2001 2002 2003 2004 2005 2006 2~
Revenues:
Taxes $ 3,542,883 $3,784,810 $3,962,782 $4,102,022 $4,502,446 $ 4,836,923 $5,243,088 $5,579,540 $ 6,254,513 $7,296,138
Intergovernmental 485,648 532,558 644,679 573,933 638,106 575,986 596,947 622,457 679,001 815,828
Charges for services 273,779 300,073 264,018 302,072 382,650 362,663 477,513 490,995 507,702 526,922
Intergovernmental 190,650 207,487 232,833 252,756 327,270 337,490 341,700 254,898 262,700 273,150
Franchise fees based on gross receipts - - - - - - - 367,778 419,929 477,711
Grants - - - - 142,207 56,517 43,945 515,438 900,183 90,398
Licenses and permits 89,203 104,428 96,975 83,702 108,429 103,564 93,601 549,884 631,521 401,704
Interest 91,785 132,621 236,148 193,208 84,693 83,166 79,483 214,588 392,961 404,816
Fines and forfeitures 72,971 58,936 45,675 47,351 68,758 58,467 57,413 352,254 34,825 111,080
Miscellaneous 8,566 13,795 18,129 46,116 46,423 80,494 83,126 289,647. 175,343 52,899
Rents and royalties - - - - - - - - - 108,628
Impact fees 1,525 95,288 29,225 4,084 44,320 32,143 11,028 9,707 12,292 3,858
Total revenues 4,757,010 5,229,996 5,530,464 5,605,244 6,345,302 6,527,413 7,027,844 9,247,186 10,270,970 10,563,132
Expenditures:
Current:
General government 964,623 839,914 895,633 1,216,011 1,139,653 1,289,050 1,225,550 1,314,270 1,391,612 1,371,149
Public safety 2,572,384 2,671,668 2,649,089 2,996,439 3,229,968 3,443,961 3,918,798 4,351,936 5,233,807 5,291,398
Transportation 413,501 296,321 381,372 430,813 403,363 440,263 776,273 625,014 807,651 736,436
Leisure services 245,023 242,001 245,165 238,843 325,326 347,975 384,980 523,439 692,408 495,767
Capital outlay 367,896 1,810,226 432,305 1,381,776 4,048,126 1,439,607 368,303 870,453 3,162,034 1,892,075
Debt service:
Principal 138,071 246,325 330,768 486,147 1,997,263 470,221 319,280 336,101 382,687 482,665
Interest 114,158 163,592 162,420 164,307 133,998 277,855 262,479 255,672 243,871 222,937
Fiscal charges - - 6,135
Total expenditures 4,815,656 6,270,047 5,096,752 6,914,336 11,277,697 7,708,932 7,255,663 8,276,885 11,914,070 10,498,562
Excess (deficiency) of revenues
over expenditures (58,646) 1,0( 40,051) 433,712 1,3( 09,092) 4,932,395 _(1,181,519) 227,819 970,301 (1,643,100) 64,568
Other financing sources (uses):
Transfers in 660,710 777,309 742,355 2,624,652 5,358,147 464,954 326,010 3,771,617 2,023,368 685,644
Transfers-out (562,179) (585,609) (542,811) (644,090) (4,038,447) (472,801) (334,470) (3,068,840) (1,963,068) (625,344)
Other proceeds 59,208 1,583,578 550,000 - 5,252,000 - 574,624 152,999 136,789 -
Total other financing sources (uses) 157,739 1,775,278 749,544 1,980,562 6,571,700 (7,847) 566,164 855,776 197,089 60,300
Net change in fund balances $ 99,093 $ 735,227 $1,183,256 $ 671,470 $1,639,305 $ 1,189,366 $ 338,345 $1,826,077 $ 1,446,011 $ 124,868
Debt service as a percentage of
noncapital expenditures 5.67% 9.19% 10.57% 11.76% 29.48% 11.93% 8.45% 7.99% 7.16% 8.20%
-76-
VII.LAGE OF TEQUESTA, FLORIDA
TAX REVENUES BY SOURCE, GOVERNMENTAL FUNDS
LAST FIVE FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal
Year Pro e Sales & Use Franchise Total
2003 $3,392,623 $ 1,093,877 $ 350,423 $4,836,923
2004 3,781,095 1,089,781 372,212 5,243,088
2005 4,494,713 1,084,827 367,778 5,947,318
2006 5,166,754 1,087,759 419,929 6,674,442
2007 6,139,007 1,036,200 477,711 7,652,918
Change:
2003-2007 2,746,384 (57,677) 127,288 2,815,995
2003-2007 80.95% -5.27% 36.32% 58.22%
This report is not required. However, the Village of Tequesta started presenting this data from 2003.
-77-
VILLAGE OF TEQUESTA, FLORIDA
REVENUE FROM SALES & USE TAXES BY CATEGORY
LAST FIVE FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
2003 2004 2005 2006 2007
Utility taxes:
Electric $ 372,565 $ 350,854 $ 363,807 $ 363,620 $ 392,158
Water 158,738 177,954 156,890 169,302 100,360
Propane 23,904 24,329 30,587 37,557 21,402
Communications services tax 351,680 340,996 335,593 329,248 343,620
Gas taxes:
Local gas tax 6 cents 127,087 133,272 135,948 129,668 122,271
Local gas tax 1-5 cent 59,903 62,376 62,000 58,364 56,389
$1,093,877 $1,089,781 $1,084,827 $1,087,759 $1,036,200
Note: The Village began to report accrual information when it implemented GASB Statement 34 in fiscal year
2003.
-78-
VILLAGE OF TEQUESTA, FLORIDA
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Real Property
Estimated
Taxable Actual "Just"
Assessed Value of
Taxable
September 30 Value Pro e
Personal Property
Estimated
Actual "Just"
Taxable Value of
Assessed Taxable
Value Pro e
Centrally
Assessed Prot
Estimated
Actual "Just"
Taxable Value of
Assessed Taxable
Value Pro e
Estimated Assessed
Actual "Just" Value as a
Taxable Direct Value of Percentage of
Assessed Tax Taxable Actual
Value Rate Pro e Value
Total
1998 $ 366,649,040 $ 454,995,565 $17,405,293 $19,996,199 $ - $ - $ 384,054,333 $ 7 $ 474,991,764 81%
1999 391,373,771 487,378,779 16,920,043 20,210,854 - - 408,293,814 6.7305 507,589,633 80%
2000 422,707,903 522,797,351 18,949,389 21,865,379 278,827 278,827 441,936,119 6.7305 544,941,557 81%
2001 468,569,608 601,222,227 18,641,610 21,621,054 279,734 279,734 487,490,952 6.7305 623,123,015 78%
2002 503,562,346 672,688,887 19,211,494 22,202,297 287,762 287,762 523,061,602 6.7305 .695,178,946 75%
2003 583,470,308 789,428,369 19,488,528 22,409,087 326,474 326,474 603,285,310 6.4980 812,163,930 74%
2004 695,900,596 950,969,798 19,752,631 22,669,061 340,485 340,485 715,993,712 6.4980 973,979,344 74%
2005 804,692,586 1,159,686,579 20,372,762 23,286,106 340,839 340,839 825,406,187 6.4980 1,183,313,524 70%
2006 959,650,125 1,369,028,275 21,925,090 21,925,090 385,284 385,284 981,960,499 6.4980 1,391,338,649 71%
2007 992,309,662 1,410,466,330 24,589,752 27,733,698 489,214 489,214 1,017,388,628 6.4980 1,438,689,242 71%
Source: Palm Beach County Property Appraiser's office:
Form DR-403AM "The 2004 Revised Recapitulation of the Ad Valorem Assessment Rolls of Tequesta, Palm Beach County, Florida", 02/15/05
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VILLAGE OF TEQUESTA, FLORIDA
PROPERTY TAX RATES -ALL DIRECT AND OVERLAPPING GOVERNMENTS
(Per $1,000 of Assessed Value)
LAST TEN FISCAL YEARS
Direct Rates Overlapping Rates (a)
Total S. Florida Jupiter Fl. Island Children's County
Fiscal Year Ending Village County Everglades School County Water Mgmt. Inlet Nav. District Services Health Care
September 30 Rates Coun Debt Construction District Librarv District District (FIND) Council District
1998 6.6310 4.8666 0.2582 0.1000 9.5570 0.4977 0.6970 0.1203 0.0500 0.4530 1.1600
1999 6.7305 4.8580 0.3456 0.1000 9..6820 0.5246 0.6970 0.1180 0.0470 0.4403 1.0500
2000 6.7305 4.9362 0.3362 0.1000 8.9180 0.5403 0.6970 0.1091 0.0410 0.5000 1.0250
2001 6.7305 4.9351 0.3851 0.1000 8.9480 0.5403 0.6970 0.1012 0.0385 0.5703 1.1500
2002 6.7305 4.5000 0.3084 0.1000 8.7790 0.5403 0.5970 0.0916 0.0385 0.6228 1.1300
2003 6.4980 4.5000 0.2910 0.1000. 8.5710 0.5833 0.5970 0.0916 0.0385 0.6902 1.1300
2004 6.4980 4.5000 0.2677 0.1000 8.4320 0.5807 0.5970 0.0916 0.0385 0.6902 1.1000
2005 6.4980 4.4500 0.2692 0.1000 8.1060 0.6250 0.5970 0.0916 0.1000 0.6887 1.0800
2006 6.4980 4.2800 0.1975 0.1000 7.8720 0.5989 0.5970 0.0916 0.0385 0.6199 0.9700
2007 6.4980 3.7811 0.2002 0.0894 7.3560 0.5441 0.5346 0.0909 0.0345 0.5823 0.8900
(a) Overlapping rates are those of local and county governments that apply to property owners within the Village of Tequesta
Sources: Palm Beach County Property Appraiser`s office
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VILLAGE OF TEQUESTA, FLORIDA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND N1NE YEARS AGO
2007
Taxpayer
Tamwest Realty, Inc (County Line Plaza)
Inland S.E. Tequesta, LLC (Teq. Shoppes)
Terrace Communities Tequesta LLC
Cohen Square, LLC
Royal Tequesta LLC
Slo Ml LLC
JMZ Tequesta Properties, Inc.
AHC Purchaser Inc
Tequesta Country Club
Tracy Thomas J
Tequesta Shopper, Ltd.
Dorner Properties
Tequesta Business Associates
Barnett Bank
Tequesta Fashion Mall
202 Buiding (SHW Ltd.)
Gordon, John M.
Total
Taxable
Assessed
Value
$ 19,143,709
8,500,000
8,161,692
7,400,000
5,307,556
5,200,942
5,132,033
4,700,000
4,470,429
4,410,450
$ 72,426,811
Source: Palm Beach County Property Appraiser's Office
Rank
1
2
3
4
5
6
7
8
9
10
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Percentage of
Total Village
Taxable
Value
1.88%
0.84%
0.80%
0.73
0.52%
0.51
0.50%
0.46%
0.44%
0.43
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
7.12%
1998
Percentage of
Taxable Total Village
Assessed Taxable
Value Rank Value
$ 9,822,514 1 2.56%
7,200,020 2 1.87%
2,581,132 6 0.67%
0.00%
3,802,061 3 0.99%
3,797,095 4 0.99%
2,700,000 5 0.70%
2,060,414 7 0.54%
1,700,000 8 0.44%
1,653,366 9 0.43%
1,631,000 10 0.42%
$ 36,947,602 9.62%
VILLAGE OF TEQUESTA, FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS (iJNAUDITED) (1)
LAST TEN FISCAL YEARS
Collected within the
Fiscal Year Taxes Levied Fiscal Year of the Levy Collections Total Collections to Date (2)
Ended for the Percentage in Subsequent Percentage
September 30, Fiscal Year (1) Amount of Lew -Years Amount of Le
1998 $ 2,457,085 $2,450,091 99.7% $ 6,994 $2,457,085 100.0%
1999 2,653,474 2,642,313 99.6% 11,161 2,653,474 100.0%
2000 2,858,426 2,846,894 99.6% 11,531 2,858,425 100.0%
2001 2,985,994 2,970,942 99.5% 15,052 2,985,994 100.0%
2002 3,271,160 3,147,730 96.2% 5,816 3,153,546 96.4%
2003 3,520,466 3,388,176 96.2% 13,983 3,402,160 96.6%
2004 3,912,003 3,776,782 96.5% 3,750 3,780,532 96.6%
2005 4,650,578 4,486,224 96.5% 5,338 4,491,562 96.6%
2006 5,363,489 5,164,292 96.3% 4,590 5,168,882 96.4%
2007 6,355,149 6,134,038 96.5% 8,176 6,142,214 96.6%
(1) The tax levied in a fiscal year is based on the taxable value of the prior year
(2) Includes discounts taken by properly taxpayers.
Source: Palm Beach County Tax Collector's office.
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VILLAGE OF TEQUESTA, FLORIDA
SECOND TIER CAPACITY -OTHER TAXES BY CATEGORY
' LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Utility taxes:
Electric $ 365,536 $ 386,207 $ 350,269 $ 347,272 $ 362,884 $ 372,565 $ 350,854 $ 363,807 $ 363,620 $ 392,158
Water 17,366 113,001 162,187 134,352 136,133 158,738 177,954 156,890 169,302 100,360
Propane 96,916 17,079 22,397 32,212 15,983 23,904 24,329 30,587 37,557 21,402
Communications services tax - - - - 319,357 351,680 340,996 335,593 329,248 343,620
Gas taxes:
Local option gas tax 6 cents & 1-5 cent 154,170 165,672 165,496 183,668 174,357 186,990 195,648 197,948 188,033 178,660
$ 633,988 $ 681,959 $ 700,349 $ 697,504 $1,008,714 $1,093,877 $1,089,781 $1,084,826 $ 1,087,759 $1,036,200
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VILLAGE OF TEQUESTA, FLORIDA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities Business-typ e Activities Total
Revenue Notes Capital Revenue Notes Primary
Fiscal Year Bonds Payable Leases Bonds Payable Government
1998 $1,115,000 $ 12,221 $ 446,913 $ 7,915,000 $ 12,529 $9,501,663
1999 1,040,000 8,448 390,781 7,915,000 104,068 9,458,297
2000 960,000 4,029 314,127 7,780,000 84,360 9,142,516
2001 880,000 - 246,696 7,640,000 58,669 8,825,365
2002 790,000 5,000,000 162,856 7,495,000 36,723 13,484,579
2003 695,000 4,838,352 353,636 7,345,000 13,827 13,245,815
2004 595,000 4,669,648 363,065 7,185,000 645,170 13,457,883
2005 490,000 4,493,579 461,032 7,020,000 524,852 12,989,463
2006 380,000 4,309,827 508,886 6,850,000 504,852 12,553,565
2007 259,846 4,118,053 338,150 6,670,000 437,952 11,824,001
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VILLAGE OF TEQUESTA, FLORIDA
RATIO OF NET OUTSTANDING DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA (UNAUDITED)
LAST TEN FISCAL YEARS
Assessed (A) (B) (A - B) Ratio of Net
Value of Gross Debt Service Net O/S Debt to
Fiscal Year ended Taxable Outstanding Funds Outstanding Value of Net O/S Debt
September 30, Population* Pro e Debt Available O/S Debt Taxable Property Per Capita
1998 5036 $384,054,333 $9,501,663 $ 48,871 $9,452,792 2.46% $ 1,877
1999 5122 408,293,784 9,458,297 75,874 9,382,423 2.30% 1,832
2000 5273 441,936,119 9,142,516 118,738 9,023,778 2.04% 1,711
2001 5307 487,490,952 8,825,365 141,912 738,088 0.15% 139
2002 5327 525,401,605 13,484,579 141,913 13,342,666 2.54% 2,505
2003 5333 603,285,310 13,245,815 225,676 13,020,139 2.16% 2,441
2004 5648 695,600,596 13,457,883 272,801 13,185,082 1.90% 2,334
2005 5686 804,692,586 12,989,463 294,444 12,695,019 1.58% 2,233
2006 5702 959,650,125 12,553,565 378,680 12,174,885 1.27% 2,135
2007 5942 992,309,662 11,824,OQ1 482,726 11,341,275 1.14% 1,909
*Sources: Palm Beach County Planning Board, University of Florida Estimates
Federal Census
Palm Beach County Metro-Planning Organization
PBC Property Appraiser's Office, Form DR-403AM -The 2003 Revised Recapitulation of the Ad valorem Assessment Rolls
Tequesta, FL demographic resources - Sperling's Best Places
Source -Bureau of Economic & Business Research, University of Florida for population estimates
B) Special Revenue Fund 101 -Fund Balance
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VILLAGE OF TEQUESTA, FLORIDA
COMPUTATION OF LEGAL DEBT MARGIN
SEPTEMBER 30, 2007
Total assessed value
Legal debt margin:
Debt limitation - 10% of total assessed value
Total bonded debt outstanding 259,846
Less amount available in debt service fund (b) 341,736
Total debt applicable to limitation
Legal debt margin
(a) PBC Property Appraiser's Office, Form DR-420 'Certificate of Taxable Value'
(b) IBR- Special Revenue -Unreserved Fund Balance at 9/30/2007
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$1,016,956,533
101,695,653
$ 101,695,653
VILLAGE OF TEQUESTA, FLORIDA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
SEPTEMBER 30, 2007
Governmental Unit
Estimate
Net Estimate Share of
Bonded Percentage Direct and
Debt Applicable to Overlapping
Outstanding Tequesta (a) Debt
Debt repaid with property taxes
Palm Beach County
P.B.C. School Board
$ 315,515,000 0.60% $ 1,893,090
66,345,000 0.60% 398,070
Subtotal, overlapping debt
Village of Tequesta direct debt
Total direct and overlapping debt
2,291,160
4,716,049
$ 7,007,209
Sources: Assessed value date used to estimate applicable percentages provided by each governmental unit.
Notes: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the
Village of Tequesta. This schedule estimates the portion of the outstanding debt of those overlapping
governments that is borne by the residents and business of the Village of Tequesta. This process recognizes
that, when considering the Village's ability to issue and repay long-term debt, the entire debt burden borne by
the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a
resident -and therefore responsible for repaying the debt - of each overlapping government.
(a) For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable
assessed property values. Applicable percentages were estimated by determining the portion of another
governmental unit's taxable assessed value that is within the Village's boundaries and dividing it by each unit's
total taxable assessed value.
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VILLAGE OF TEQUESTA, FLORIDA
PLEDGED-REVENUE COVERAGE
LAST TEN FISCAL YEARS
Less: Net
Fiscal Pledged Operating Available Debt Service
Year Revenues (a) Expenses Revenue Principal Interest Coverage
1998 $ 436,385 $ 142,866 $ 293,519 $ 70,000 $ 72,866 2.05
1999 455,063 143,370 311,693 75,000 68,370 2.17
2000 490,179 143,960 346,219 80,000 63,960 2.40
2001 498,959 139,095 359,864 80,000 59,095 2.59
2002 441,409 144,461 296,948 90,000 54,461 2.06
2003 448,946 143,585 305,361 95,000 48,585 2.13
2004 464,973 142,678 322,295 100,000 42,678 2.26
2005 459,873 141,490 318,383 105,000 36,490 2.25
2006 524,468 140,135 384,333 110,000 30,135 2.74
2007 593,649 143,370 450,279 120,154 23,216 3.14
Note: Details regarding the Village's outstanding debt can be found in the notes to the financial statements.
Operating expenses do not include interest, depreciation or amortization expenses.
(a) Pledged revenues include franchise fees, licenses and permits from Fund 101.
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VILLAGE OF TEQUESTA, FLORIDA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Per
Capita
Fiscal Population Personal Personal Median Unemployment
Year ~ Income Income 4 A e 2 Rate 3
1998 5036 $ - $ - 0.0 4.7%
1999 5122 - - 0.0 5.7%
2000 5273 184,417,902 34,974 47.5 5.2%
2001 5307 185,607,018 34,974 47.5 5.5%
2002 5327 186,306,498 34,974 47.5 5.1%
2003 5333 186,516,342 34,974 47.5 6.2%
2004 5648 197,533,152 34,974 47.5 5.7%
2005 5686 198,862,164 34,974 47.5 3.1%
2006 5702 199,421,748 34,974 47.5 3.7%
2007 5942 256,397,300 43,150 49.6 3.3%
Note: Principal Employers -The Village of Tequesta has no discernable level of industries. "Workforce
Housing Needs Assessment: Municipal Profiles", prepared by the Metropolitan Center, Florida International
University.
Sources:
(1) Bureau of Economic and Business research, University of Florida.
(2) 2000 U.S. Census Data., adjusted for inflation by MuniNetGuide.com
(3) Agency for Workforce Innovation (AWI).
(September to September -local area by County -not seasonally adjusted)
(4) Wikipedia.org
Year 2007
(1), (2), (3), (4) Tequesta, Florida demographic and economic resources - Sperling's Best Places
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VILLAGE OF TEQUESTA, FLORIDA
FULL-TIME EQUIVALENT VILLAGE GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
LAST SIX FISCAL YEARS
Function/ProPram
Governmental activities:
General government
Public safety
Transportation
Leisure services
Community development (a)
Total governmental activities
Business-type activities:
Water
Stormwater
Community development
Total business-type activities
Total primary government
Note: The Village was able to access this data from 2002.
Full-time Equivalent Employees
As of September 30
2002 2003 2004 2005 2006 2007
Proposed
8.0 8.5 12.0 11.5 10.5 9.5
45.5 51.0 45.0 42.0 46.0 51.0
2.0 2.5 - - 3.0 4.0
1.5 2.5 2.0 2.0 3.0 3.0
- 3.0 2.5 3.0 - -
57.0 67.5 61.5 58.5 62.5 67.5
14.0 12.5 14.5 14.0 15.0 15.5
0.5 - - - 1.0 1.0
3.5 3.0 - - - -
18.0 15.5 14.5 14.0 16.0 16.5
75.0 83.0 76.0 72.5 78.5 84.0
Source: Village Of Tequesta Budget Reports and Human Resource Department.
Notes: A full-time employee is scheduled to work 2,088 hours per year (including vacation and sick leave).
Full-time-equivalent employment is calculated by dividing total labor hours by 2,088.
(a) Community Development activities (planning, building and code enforcement) were accounted for in an
enterprise (business-type activity) fund until fiscal year 2005 when the fund was closed. Plamiing, building and
code enforcement activities are currently accounted for in the General Fund.
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VILLAGE OF TEQUESTA, FLORIDA
OPERATING INDICATORS BY FUNCTION/PROGRAM
CURRENT FISCAL YEAR
2007
Governmental activities:
General government
Registered voters 4,007
Public safety:
Police department 1
No. of full-time certified police officers 19
No. of total calls received 3,500
No. of arrests 238
No. of parking violations 148
No. of incident numbers issued 853
Fire department:
No. of full-time certified firefighters 19
No. of emergency responses 1,122
No. of transports 521
No. of fires extinguished 601
No. of inspections 412
Building, zoning:
No. of building permits issued 998
No. of building inspections conducted 2,581
Transportation:
Miles of street lane miles 43
Leisure services:
No. of parks 3
No. of park acreage 53
Business-type activities:
Water:
No. of customers 4,722
Average daily consumption 2.349 mg
Miles of water mains 75
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VILLAGE OF TEQUESTA, FLORIDA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
CURRENT FISCAL YEAR
Function/pro rg am: 2007
Governmental activities:
General government:
Municipal center
Public safety
Police:
No. of stations 1
No. of patrol units 12
Fire:
No. of stations 1
No. of ambulances 2
No. of pumpers 3
Transportation:
Miles of street lane miles 43
Leisure services
No. of parks 3
No. of park acreage 53
No. of playgrounds 3
No. of baseball/softball diamonds 3
No. of skate-parks 1
Business-type activities:
Water:
Miles of water mains 75
No. of fire hydrants 430
Storage capacity (thousands of gallons) 3,250
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COMPLIANCE SECTION
^
ac in
accountants • advisors
Report of Independent Certified Public Accountants 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
Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
We have audited the financial statements of the governmental activities, the business-type activities and
each major fund and the aggregate remaining fund information of the Village of Tequesta, Florida (the
Village), as of and for the year ended September 30, 2007, which collectively comprise the Village's
basic financial statements, and have issued our report thereon dated March 10, 2008. We conducted our
audit in accordance with auditing standards generally accepted in the United States and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States.
Internal Control over Financial Reporting
In planning and performing our audit, we considered the Village's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Village's
internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness
of the Village's internal control over financial reporting.
A control deficiency exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of
control deficiencies, that adversely affects the Village's ability to initiate, authorize, record, process, or
report financial data reliably in accordance with generally accepted accounting principles such that there
is more than a remote likelihood that a misstatement of the Village's financial statements that is more
than inconsequential will not be prevented or detected by the Village's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in
more than a remote likelihood that a material misstatement of the financial statements will not be
prevented or detected by the Village's internal control.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and would not necessarily identify all deficiencies in internal control that
might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal
control over financial reporting that we consider to be material weaknesses, as defined above.
-93-
~ ~ ~
Rachlin LLP ^ One Southeast Third Avenue ^ Tenth Floor ^ Miami, Florida 33131 ^ Phone 305.377.4228 ^ Fax 305.377.8331 ^ wWW.raChlin.com
An Independent Member of Baker Tilly International
M I A M I F O R T L A U D E R D A L E W E S T P A L M B E A C H
Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
Page Two
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Village of Tequesta's financial statements
are free of material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts and grant agreements, noncompliance with which could have a direct and material
effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit and, accordingly, we do not express
such an opinion. The results of our tests disclosed no instances of noncompliance or other maters that are
required to be reported under Government Auditing Standards.
This report is intended solely for the information and use of the Mayor, Village Council, management and
regulatory agencies and pass-through entities and is not intended to be and should not be used by anyone
other than these specified parties.
hr~~'~~^'G G f'
West Palm Beach, Florida
March 10, 2008
-94-
Rachlin
acrnuntants•aduisors
^
ac in
accountants ^ advisors
Management Letter in Accordance with the Rules of the Auditor General of the State of Florida
Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
We have audited the basic financial statements of the Village of Tequesta, Florida (the Village) as of and for
the year ended September 30, 2007, and have issued our report thereon dated March 10, 2008, which was
modified to refer to the report of other auditors with regards to the Pension Trust Funds.
We conducted our audit in accordance with auditing standards generally accepted in the United States; the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations. We have issued our Report on Internal Control over Financial Reporting and on Compliance
and Other Matters. Disclosures in that report, which is dated March 10, 2008, should be considered in
conjunction with this management letter.
Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the
Auditor General, which govern the conduct of local governmental entity audits performed in the State of
Florida and, unless otherwise required to be reported in the report on compliance and internal controls or
schedule of findings and questioned costs, this letter is required to include the following information.
- Section 10.554(1)(1)1., Rules of the Auditor General, requires that we determine whether or not
corrective actions have been taken to address significant findings and recommendations made in the
preceding annual financial audit report. There were no previous year findings or recommendations.
- Section 10.554(1)(1)2., Rules of the Auditor General, requires our audit to include a review of the
provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection
with our audit, we determined that the Village complied with Section 218.415, Florida Statutes.
- Section 10.554(1)(1)3., Rules of the Auditor General, requires that we address in the management letter
any recommendations to improve financial management, accounting procedures, and internal controls.
In connection with our audit, we did not have any such recommendations.
- Section 10.554(1(1)4., Rules of the Auditor General, requires that we address violations of provisions
of contracts and grant agreements or abuse that have an effect on the financial statements that is less
than material but more than inconsequential. In connection with our audit, we did not have any such
findings.
- Section 10.554(1)(1)5., Rules of the Auditor General, requires based on professional judgment, the
reporting of the following matters that are inconsequential to the financial statements, considering both
quantitative and qualitative factors: (1) violations of laws, rules, regulations, and contractual provisions
or abuse that have occurred, or were likely to have occurred, and would have an immaterial effect on
-95-
~ ~ ~
Rachlin LLP ^ One Southeast Third Avenue ^ Tenth Floor ^ Miami, Florida 33131 ^ Phone 305.377.4228 ^ Fax 305.377.8331 ^ WWw.raChlin.com
An Independent Member of Baker Tilly International
M I A M I ^ F O R T L A U D E R D A L E W E S T P A L M B E A C H
Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
Page Two
- the financial statements; (2) improper expenditures or illegal acts that would have an immaterial
effect on the financial statements; and (3) control deficiencies that are not significant deficiencies,
including, but not limited to; (a) improper or inadequate accounting procedures (e.g., the omission
of required disclosures from the financial statements); (b) failures to properly record financial
transactions; and (c) other inaccuracies, shortages, defalcations, and instances of fraud discovered
by, or that come to the attention of, the auditor. In connection with our audit, we did not have any
such findings.
- Section 10.554(1)(1)6., Rules of the Auditor General, requires that the name or official title and
legal authority for the primary government and each component unit of the reporting entity be
disclosed in this management letter, unless disclosed in the notes to the financial statements. The
Village was incorporated in 1957 By Laws of Florida 57-1915. There are no component units.
- Section 10.554(1)(i)7.a., Rules of the Auditor General, requires a statement be included as to
whether or not the local governmental entity has met one or more of the conditions described in
Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In
connection with our audit, we determined that the Village did not meet any of the conditions
described in Section 218.503(1), Florida Statutes.
- Section 10.554(1)(i)7.b., Rules of the Auditor General, requires that we determine whether the
annual financial report for the Village for the fiscal year ended September 30, 2007, filed with the
Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in
agreement with the annual financial audit report for the fiscal year ended September 30, 2007. In
connection with our audit, we determined that these two reports were in agreement.
- Section 10.554(1)(i)7.c. and 10.556(7), Rules of the Auditor General, require that we apply
financial condition assessment procedures. In connection with our audit, we applied financial
condition assessment procedures. It is management's responsibility to monitor the entity's financial
condition, and our financial condition assessment was based in part on representations made by
management and the review of financial information provided by same.
This management letter is intended solely for the information of the Mayor, Village Council,
management, and the State of Florida Office of the Auditor General, and is not intended to be and should
not be used by anyone other than these specified parties.
~~LG~
West Palm Beach, Florida
March 10, 2008
-96-
Rachlin
accountants • advisors
~ifty years ago the Village of Tequesta was one man's dream of paradise.
Today that dream has transpired into the home of over 5000 residents who
feel they have found their little slice. Originally a retirement community,
Tequesta's demographics have changed and that all familiar yellow school bus now makes
its daily rounds.
In these 50 years, the changes have been dramatic. Things were picking up when we
were exposed to the bowling alley, Piggly Wiggly Market and the Truck Stop, with its
unpaved parking lot. Cato's Bridge to the island on Beach Road swung in the middle and
the Snook were piled up like cord wood below it.
Yes, we all reminisce how it used to be, but we still remain the Village of
Tequesta. Webster's' definition of aVillage - "larger than a town but smaller than a hamlet".
Has a nice ring to it, don't you think? Nestled between the Loxahatchee River, Intracoastal
Waterway and the Atlantic Ocean, we have found our little bit of heaven.
Today we are afforded many of the 21st century comforts. First class would best
describe our municipal complex, public safety and recreational facilities. While progress
may sometimes be troublesome, the Village has always moved slowly and considers the
quality of life of its residents. Young and old alike benefit from our surroundings and the
services offered by the Village. A wonderful place to live and a wonderful place of which
to be a part.
HAPPY
SOTH
ASIIVIVERSARY
TE~UESTA!