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HomeMy WebLinkAboutBudget_Full Budget_03/12/2009Pr PA VILLAGE OF TEQUESTA COUNCIL MEMBERS 2008 Mayor Vice Mayor Pat Watkins, Cah•in Turnquest, Vinci Arena, Council ~tilcmbcr James Humpage, Council Member tom Paterno, Council Member VILLAGE OF TEQUESTA, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 2008 Prepared By Finance Department The Village of Tequesta, Florida VILLAGE OF TEQUESTA, ~LORIDA TABLE OF CONTENTS PAGE L 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 i8 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 26-55 REQUIRED SUPPLEMENTARY INFORMATION (Other than MD&A): Budgetary Comparison Schedule -General Fund 56 Note to Budgetary Comparison Schedule 57 Schedule of Employer Contributions 58 Schedule of Funding Progress 59 VILLAGE OF TEQUESTA, FLORIDA TABLE OF CONTENTS (Continued) PAGE COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Combining Balance Sheet -Nonmajor Governmental Funds 60 Combining Statement of Revenues, Expenditures and Changes in Fund Balances -- Nonmajor Governmental Funds 61 Budgetary Comparison Schedule -Special Revenue Fund 62 Budgetary Comparison Schedule -Special Law Enforcement Trust Fund 63 Budgetary Comparison Schedule -Capital Improvement Fund 64 Budgetary Comparison Schedule -Capital Projects 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 IIL STATISTICAL SECTION Net Assets by Component -Last Six Fiscal Years 71 Changes in Net Assets -Last Six Fiscal Years 72-73 Program Revenues by Function/Program -Last Six 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 Six Fiscal Years 77 Revenues from Sales and Use Taxes by Category -Last Six 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 g$ 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/Program - Last Seven Fiscal Years 90 Operating Indicators by Function/Program -Current Fiscal Year 91 Capital Asset Statistics by Function/Program -Current Fiscal Year 92 VILLAGE OF TEQUESTA, FLORIDA TABLE OF CONTENTS (Continued) IV. COMPLIANCE SECTION PAGE 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 Schedule of Findings and Responses 97-99 Page Intentionally Left Blank hot, Village Of Tufuesta 345 Tequesta Drive I P: (561) 575-6200 Tequesta, FL 33469 F: (561) 575-6203 February 27, 2009 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, 2008. 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, 2008 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 1S`, 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. 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. ii 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 a high- level service delivery in an efficient and economical manner. • Continue to evaluate and implement contemporary policies and procedures to ensure the efficient and economical operation of the Village of Tequesta. 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 (LGIP and Fund B), In the beginning of the 2008 fiscal year, the Village held investments in the LGIP which consisted 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 iii B1ackRock, an independent investment advisor, the State Board of Administration restructured the Pool into two separate pools. Pool A (LGIP) 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. At September 30, 2008, the Village had $3,510,270 and $672,560 invested in Governmental Activities and Business-type Activities, respectively. Subsequently, by the date of this letter, the Village had reduced its investments in both LGIP and Pool B to $332,626 and $253,357 respectively and moved these funds into various cash and cash equivalents (i.e. checking accounts, money market accounts, short-term certificates of deposits, etc.). Additional information regarding the Local Government Surplus Funds Trust Fund maybe obtained from the State Board of Administration. Risk Management During 2008, 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 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 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 financial statements 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, 2007. 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. iv 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, ~---- , -.. `_.... ~ ~_ ~C _.... Michael R. Couzzo, Jr. J nn Forsythe, CPA Village Manager Finance Director v 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, 2007 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. s ~,"~ ~f~ • ~SfAiES y x$y~ ~~'r~ President ~~ Executive Director -vi- A ao O [~-~ U ~'' W C M W H ~ E O ~ vI V O a a a~ GJ a 0 .^~, W ~, 3 v E > o N ~ ai V N Y CC C F+ h T N U1 Y ~ ~ L ~ U U1 ~ J N N O1 a+ Y L Q i+ > O Y ~ V O Q v X ~ w Q U .a d0 ~ a m c ~ ai ~ ~ ~, ~ v ~ ~ ~~ a °` ~ v ~ ~, a ~ Q LL ~ \ ~ Y ~ Y C f N U ~ N ~ ~ C O N 0 ~ ~ O O u U1 tv E ~ V O 00 ~ =_ > O U p w i+ ~ Y ~ ~ U ~ CC C O ~ ~ d fl_ ~ Q U1 6/ 0 Y C G1 C ~ ~ ~ U G d - f0 y f. v1 !.1 7 T C f0 d Ll ~- U N C/ . N K OC V1 C ~ ~ i O 2 ~ K .~ 1 VILLAGE OF TEQUESTA, FLORIDA LIST OF PRINCIPAL OFFICIALS SEPTEMBER 30, 2008 VILLAGE COUNCIL 2007-2008 Patricia Watkins Calvin Turnquest Vince Arena James Humpage Thomas Paterno Michael R. Couzzo, Jr. Trela White (Corbett & White.PA) Lori McWilliams JoAnn Forsythe, CPA James M. Weinand William McCollom Catherine Harding Russell White Michael R. Couzzo, Jr. Gregg Corbitt Mayor Vice-Mayor Councilmember Councilmember Councilmember VILLAGE OFFICIALS Village Manager Village Attorney Village Clerk Finance Director Fire Chief Police Chief Director of Community Development Public Services Manager Director of Utilities Director of Parks and Recreation INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS Rachlin LLP Accountants & Advisors -vui- FINANCIAL SECTION REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS ^ ac in 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, 2008, 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 fmancial statements are free of material misstatement. An audit includes consideration of internal control over fmancial 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 fmancial 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, 2008 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 February 27, 2009 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 ^ 777 South Flagler Drive ^ Suite 150 ^ West Palm Beach, Florida 33401 ^ Phone 561.833.0002 ^ Fax 561.833.3235 ^ 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 N 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 fmancial 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 opuuon 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 fmancial 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. West Palm Beach, Florida February 27, 2009 -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, 2008. 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 $31 million (net assets). . • This is an increase of $971,463 (3.2%) from the prior year. • $10 million is unrestricted net assets and maybe used to meet the ongoing obligations to the citizens and creditors. • While total net assets increased from the prior year, net assets of the Business-type activities decreased $223,772. • Total general revenues decreased $1,473,772 (15%). • As of the close of the current fiscal year, the Village's governmental funds reported combined ending fund balances of $6.47 million, an increase of $949,964 from the prior period. • At the end of the current fiscal year, unreserved, undesignated fund balance for the General fund was $4.18 million, an increase of $759,067 from the prior period. • The Village's total long-term-debt decreased by $1.1 million (9.0%) during the current fiscal year. Please see, Notes to Basic Financial Statements, Note 9 on page 40. 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 useful indicator of whether the financial position of the Village is improving or deteriorating. The statement of activities presenrts 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 fund:. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial 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 maybe 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 fund is considered to be the only major fund in fiscal year ending September 30, 2008. Data from the other four governmental funds is combined into a single, aggregated presentation. Individual fund data for each of these non-major 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 fund: 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 activities. Proprietary funds provide the same type of information as the govennment-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Water Utility. Stormwater Utility and Refuse and Recycling funds are combined irrto 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 26-55 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 56-59 of this report. The combining statements referred to earlier in connection with non-major governmental funds, as well as, non-major 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 60-70 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 $31 million at the close of the most recent fiscal year. The largest portion of the Village's net assets (67.7%) 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. Current and other assets $7,652,930 $7,012,839 $3,935,410 $4,574,156 $11,588,340 $11,586,995 Ca ital assets, net $11,102,638 $11,501,149 520,575,459 $21,539,346 $31,678,097 $33,040,495 Total assets $18,755,568 $18,513,988 $24,510,869 $26,113,502 $43,266,437 $44,627,490 Liabilities Current liabilities and a ables $763,394 $1,136,592 $205,734 $1,051,152 $969,128 $2,187,744 Lon -term liabilities $4,573,320 $5,153,777 $6,640,634 $7,174,077 $11,213,954 $12,327,854 Total liabilities $5,336,714 $6,290,369 $6,846,368 $8,225,229 $12,183,082 $14,515,598 Net assets Invested in capital assets, net of related debt $6,959,332 $6,679,855 $14,082,987 $14,513,500 $21,042,319 $21,193,355 Restricted for debt service $140,990 $136,019 $277,009 Restricted for Renew 8 R $192,525 $192,525 Unrestricted $6,459,522 $5,402,774 $3,581,514 $3,046,229 $10,041,035 $8,449,003 Total net assets $13,418,854 $12,223,619 $17,664,501 $17,888,273 $31,083,354 $30,111,892 The remaining unrestricted net asset balance of $10 million (32.3 %) 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 $971,463 (3.2%) during the year. This increase demonstrates the degree in which increases in ongoing revenues have outpaced increases in ongoing expenses. It should be noted that the increase in net assets in the prior period was 10.6% 6 Governmental activities: Governmental activities (excluding transfers) increased the Village of Tequesta's net assets by $1,074,635 accounting for 100% of the total increase in net assets of the Village and offsetting the decrease in net assets in the business type activities. Key elements of this increase follows: Revenues; Pr ram Revenues: Char es for Services $1,388,866 $1,339,526 $4165,733 $4,439 698 $5 554,599 $5 779 224 O eratin Grants & Contributions 18,711 20,350 - 7,827 $18,711 $28,177 Ca ital Grants & Contributions 57,736 54 764 - 430,000 $57 736 $484 764 General Revenues: Pro ert Taxes 5,661200 6,139007 5,661,200 6,139,007 Other Taxes 1,123,272 1,157 128 1,123,272 1 157,128 Franchise fees based on gross recei is 462,296 477 711 462 296 477,711 Inter ovemmental 783,034 815,828 783 034 815,828 Unrestricted investment earnin s 152,602 404,816 86,811 321,718 152,602 726534 Other Miscellaneous 37,621 106,647 39,955 397,708 37,621 504 355 Total Revenue 9 685,338 10,515777 4,292,499 5,596 951 13,851,071 16,112,728 E nses: General overnment 1 344,038 1,391,654 1,344,038 1,391,654 Public safet 5,784,245 5,634,834 5,784,245 5,634,834 Trans ortation 736 844 766,226 736,844 766,226 Leisure Services 539,450 559,583 539,450 559,583 Interest of to -term debt 206 126 229 074 227,065 375,376 227 065 604,450 Water utilit services 3,533,362 3,764,408 3,533,362 3 764 408 Stormwaterservices 215,163 188,708 215,163 188,708 Refuse & rec clin services 420,081 306,348 420,081 306,348 Total E nses 8,610 703 8,581,371 4,395,671 4,634,840 13,006,374 13,216,211 Chan a in net assets, before transfers 1,074,635 1,934,406 -103,172 962,111 971,463 2,763,702 Transfers and contributions: 120,600 60,300 -120,600 -60,300 - _ Chan a in net assets 1,195,235 1,994,706 -223,772 901,811 971,463 2,896,517 Netassets-be innin 10/01 12,223,619 10,228,913 17,888,273 16,986,462 30,111,892 27,215,375 Net assets - endin 9/30 13,418,854 12,223,619 17,664,501 17,888,273 31,083,355 30,111,892 Government-type activities continued: • Property taxes decreased $477,807 (-8.4%) due to decreases in the millage rate and the taxable value of properties. • Other tax revenues decreased $33,856 (-2.9%) mainly due to increased revenue from premium insurance tax revenue. Water utility tax revenue decreased from the prior year due to a decrease in water sales. • Intergovernmental revenues decreased $32,794 (-4.0%) • Investment earnings decreased $252,214 (-62%). • Revenue from charges for services increased $49,340 (3.8%) this increase was mainly due to revenues generated by the general government function. This class of revenues generated by the public safety and leisure services function decreased. • Grant revenue from governmental activities was consistent with the prior period. • Other miscellaneous revenues decreased $69,026 (-64.7%) . Expenses and Program Revenues -Governmental Activities 6.000.000 S.OOO.000 ~ 4,000,Q00 ' ~.aoa.aoa ' ~.ooo,ooo i,ooo,ooo ® ~I General Government Transportation ©_ Leisure Services Interest on Long Term Debt Figure 1 (: ,;,~°e~; E;.,. -1 - ---------_---_~,. ----- ----- 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 $8,610,703. As shown on the Statement of Activities, the functions directly benefiting from the programs generated revenue of $1.465,313 towards this cost and the remaining cost of $7,145,390 (83%) was financed 8 Public Safety through general revenues This represents a 3.5% decrease in the portion financed through general revenues from prior year. . Revenues bySource -Governmental T~~ Activities I ' Invest. earnings Miscellaneous 1.6~. 0.4^c Franchisefees.~ iMerQov Chargesfo: Grants& 4.896 "r °.,8.1% Services ~~ Contributions i 14.3%J/ O.SS6 i '....1 1 1 Taxes ' 70.0°.6 i Figure 2 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, 2008. Business-type activities: The net assets of business-type activities decreased $223,772 (-1.3%) from the prior year Operating expenses for business-type activities decreased $84,786, while operating revenues decreased $711,793. The largest changes: Grant revenues declined $430,000 and connection fees declined $359,902 from the prior year. Losses before transfers from business-type activities was $103,172 (the Water Utility recorded the largest loss of $184,096). Expenses by Function -Business Type Activities $IOfnhv 1lCf Utility a.~~~, Revenue & Recycling ^ 6°~ { 1 Figure 3 9 Revenues bySource -Business Type Activities hlisccliancous Investment 1~~, Earnings -~~~ 2~. `: } --- ---- -- --...Figure 4 -----------~--- --- -- -- Financial Analysis of the Village's Funds 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 funds 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-fisnd 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 $6,470,598, an increase of $949,965 from the prior year. Approximately 78% ($5,045,649) of the total amount of fund balances constitutes unreserved, undesignated fund balance, which is available for spending at the government's discretion. Designations reflect the Village's self-imposed limitations on the use of otherwise available current financial resources. The Village has designated $1,000,000 (15.5%) of the fund balances for Disaster Relief in the General Fund and $330,000 for Bridge Improvements in the Capital Improvement fund. Reserved fund balance is the portion of a governmental fund's net assets that is not available for appropriation. The Village reserved $94,948 (1.~%) of fund balances for inventories and encumbrances. The General Fund is the chief operating fund of the Village. At September 30, 2008, unreserved fund balance of the general fund was $5,180,612 (including designated funds). 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 61 % of total general fund expenditures, while total fund balance represents 76.2% of that same amount. Compared to the prior fiscal year, total General Fund revenues decreased by $802,732 (-8.1%). Key factors in this decrease are as follows; • Decreases in property values and new construction resulting in a decrease in ad-valorem taxes of $477,807 (-7.8%). • Intergovernmental revenues (sales taxes, revenue sharing, etc.) decreased $32,794 (-4.0%). • Licenses and permits decreased $102,645 (-26%). • Fines and forfeitures decreased $71,001 (-64%). A large part of the decrease was a $66,360 reduction in $12.50 traffic violation fund revenues. 10 • These decreases were offset by the following increases in revenue o Revenue from other taxes increased $55,749 (5.2%). Charges for services increased $48,015 (9%). General government revenue increased 41.4% while Public safety revenue decreased 14.2% from the prior yeas. o One month of franchise fees ($44,270) was recorded in the General Fund and 11 months were recorded in IBR fund which was closed in f/y/e 9/30/2009. o 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 Pro ert taxes 5 661,200 62.1 % 477 807 -8% 6,139 007 Other taxes 1,123,272 12.4% 55,749 5% 1,067,523 Inter overnmental 783,034 8.6% 32,794 -4% 815,828 Franchise fees 44,270 0.5% 44,270 Na 0 Char es for services 574,937 6.3% 48,015 9% 526 922 Intra overnmental 280100 3.1% 6,950 3% 273,150 Grants & contributions 18,712 02% 16,922 -47% 35,634 Licenses and ermits 299,059 3.3% 102,645 -26% 401,704 Investment earnin s 141,604 1.6% 235,606 -62% 377 210 Fines 8 forteitures 40 079 0.4% 71 001 -64% 111 080 Rents 8 Ro allies 103 627 1.1 % 5,001 -5% 108,628 Miscellaneous 38,242 0.4% 14,65 -28% 52,899 Im act Fees 2,575 0.0% 1,283 -33% 3858 Total Revenue 9,110,711 100% 802,732 -8% 9,913,443 Investment Revenues by Source -General Fund earnings '~ mes an Rents and royalties 1.64 ~ for(citu,es 114`b MiscNlaneous ~ Licenses and Franchise fees \ / i permits 0.5 3.3 Grants ~, ray - I ~ ~ ~ ~ ~ ~ ~~ ~ I Intragovcrnmental ~ , 3.14 'i, `~~~ i i ~ Charges for services . 6.34 IntcrgovernmenWl 8.6 Property & OthcrTaxes ' 74.5 l~gure 5 11 Expenditures in the General Fund are shown in the following schedule: Ezaenditures Genera! government 1,220,238 16.70% -150,910 -11.01% 1,371,148 Public Safety 5,439,202 56.70% 147,804 2.79% 5,291,398 Transportation 692,552 9.70% X3,884 -5.96% 736,436 Leisure services 467,740 8.30% -28,027 -5.65% 495,767 Capita! outlay 172,579 2.80% -360,124 -67.60% 532,703 Debt service 503,033 5.80% -65,338 -11.50% 568,371 Total a enditures 8,495,344 100°k -500,479 -5.56% 8,995,823 In fiscal year 2008, total General fund expenditures decreased by $500,479 (-5.56%) compared to the prior year. • All function with the exception of Public Safety reported decreases in expenditures. Expenditures for the function of Public Safety increased $147,804 (2.79%) from the prior Y~'- • In the prior year (2007) Police Operations purchased $343,116 of capital assets. In 2008 Police Operations purchased $73,592. The change of $269,524 represents 75% of the total reduction in capital outlay within the General Fund for f/y/e 9/30/2008. The Special Revenue fund had a total fund balance of $369,490 at 9/30/2008. The fund was created to account for the Improvement Revenue Refunding Bond Series 1994. On June 20, 2008 the Village paid the remaining balance of $29,846 in full. There were no early payment penalties and the Village saved $8,295 in interest. Subsequently, in the following fiscal year, the IBR Special Revenue Fund was closed and all remaining assets were transferred to the General Fund. Ending fund balances for the Capital Projects fund is $391,257 and the Capital Improvement fund is $425,006. These funds are designated for capital projects/improvements. Revenue into these funds are from capital grants and transfers-in from other funds. During the year $330,000 was transferred into the Capital Improvement fund from the General fund and designated for bridge improvements. Proprietary funds: The Village's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. At the end of the year, total net assets of the Water Utility were to $15,583,153: a decrease of $184,096 (1.2%) from the prior year. Operating revenues decreased by $824,771 while operating expenses decreased by $224,974. The Water utility reported an operating loss of $69,797. Grant revenue declined $437,827, connection fees declined $359,902 and investment income declined $204,129 lower than in the prior year. 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 Bud~etary Highliehts Differences between the original budgeted expenditures and the final amended budget can be briefly summarized as follows: • Approximately $67,466 was originally budgeted in `allocate to fund balance' for future allocation of Village Council approved salary increases. The fmal budget reflects the amounts that were allocated to departments to fund the salary increases. • $32,281 was reduced in General government -Legal, while the same amount was increased in Building and Zoning -Legal. • The budget for general government decreased $33,603. • The public safety budget increased $388,487. • The transportation (public works) budget increased $43,105. • Capital outlay budget increased $96,832. $76,714 of the increase in the final budget was funded by appropriating existing fund balance and the remaining increase was funded through increases in various budgeted revenues. The increase in appropriations funded the following; • $19,647 -roll-forward of encumbrances from the prior year. • $20,590 -Transplanting 9 royal palm trees to Tequesta Drive • $10,466 -Mimosa E-mail azchive system • $8,900 -Thermal imaging camera • $17,111 -Vehicle for Police Chief. Although the final budgeted berating expenditures were $497,856 (5.7%) greater than the original budget, actual operating expenditures were $235,431 (2.7%) less than the original budget and $741,287 (8%) less than the amended budget. Additional detail of final budget versus actual: • The budget for general government decreased $33,603. • The public safety budget increased $388,487. • The transportation (public works) budget increased $43,105. Capital Assets and Debt Administration Capital assets: The Village's capital assets for its governmental and business-type activities are $31,678,097 (net accumulated depreciation) as of September 30, 2008. These assets include land, buildings, improvements-other-than-buildings and machinery and equipment. Although the Village added more capital assets during the year than were deducted, the Village's total net capital assets for the current fiscal year decreased $1,362,400 as annual depreciation was greater than the amount of the additions. Following is a detail of capital assets at September 30, 2008. Additional information on the Village's capital assets can be found in Note 7, Capital Assets, starting on page 37 of this report. 13 Land $ 402 935 $ 83,335 $ 486 270 Construction in rogress ss,sss 28,564 ss,zs2 BUIIdIngS 8,043 522 979,512 9,023 034 Im rovements 2,885,012 29,336,257 32221,269 E uipment 3 921,507 1,175,075 5,096 585 Total capital assets $ 15,322,667 $ 31,602,742 $ 46,925,410 Less accumulated depreciation 4,220,030 11,027,283 15 247,314 Total capital assets, net $ 11,102,637 $ 20,575,461 $ 31,678,096 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. Revenue Bonds, net $ - $ 259 846 $ - $ 6,587 895 $ - $6 847,741 Notes a able $ 3 ,917,907 $ 4 ,118,052 $ 6 ,492,472 $ 437,952 $10,410,379 $4,556,004 Ca ital leases $ 225,399 $ 338,150 $ - $ - $ 225,399 $338,150 Compensated Absences $ 430,014 $ 37,728 $ 148,163 $ 148,231 $ 578 177 $585 959 Total Non-current liabilities $ 4,573,320 $ 5,153 776 $ 6,640,634 $ 7,174,078 $11,213,955 $12,327,854 During the current fiscal year, the Village's net outstanding debt, decreased by $1,113,899 (9.0%). 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 Budgets and Rates • Gross taxable values of property declined $106,112, 826 resulting in lower ad valorem tax revenues • The Village Council voted to hold the millage rate of 5.7671mills which was below the roll- back rate of 6.3917 mills. • Interest rates continue to decline in spite of the Fed continuing to drop their rate. 14 • The State of Florida is projecting that property values in Palm Beach County will continue to decline through 2010. • Revenues from sales taxes are trending lower. • The unemployment rate for the Village of Tequesta is currently 7.3 percent, which is a increase of 4.0 percetrt from a rate of 3.3 percetrt a year ago. • The South Florida Water Management District continues to impose restrictions on water usage and has indicated that the restrictions might become permanent. The restrictions have resulted in lower consumption. • 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 2.3% on October 1, 2008. • All of these factors were considered in preparing the Village of Tequesta's budget for the 2008 fiscal year. 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, 345Tequesta Drive, Tequesta, Florida 33469. 15 Page Intentionally Left Blank BASIC FINANCIAL STATEMENTS VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF NET ASSETS SEPTEMBER 30, 2008 Business- Governmental type Activities Activities Total ASSETS Cash and cash equivalents $ 3,027,225 $ 2,818,825 $ 5,846,050 Investments 3,510,270 672,559 4,182,829 Receivables, net 375,589 217,437 593,026 Inventories 41,976 31,836 73,812 Restricted assets: Investments 201,835 139,619 341,454 Net pension asset 418,939 - 418,939 Other assets 77,097 55,133 132,230 Capital assets not being depreciated 472,624 111,899 584,523 Capital being depreciated, net 10,630,013 20,463,561 31,093,574 Total assets 18,755,568 24,510,869 43,266,437 LIABII..ITIES Liabilities: Accounts payable 102,497 99,322 201,819 Retainage payable - 1,000 1,000 Accrued liabilities 362,612 28,553 391,165 Customer deposits - 16,975 16,975 Due to other governments 2,852 - 2,852 Other current liabilities 56,825 59,884 116,709 Unearned revenue 238,608 - 238,608 Non-current liabilities: Due within one year 317,605 265,958 583,563 Due in more than one year 4,255,715 ~ ~ 6;374,676 10,630,391 Total liabilities 5,336,714 6,846,368 12,183,082 NET ASSETS Invested in capital assets, net of related debt 6,959,332 14,082,989 21,042,321 Unrestricted 6,459,522 3,581,512 10,041,034 Total net assets $ 13,418,854 $17,664,501 $ 31,083,355 See notes to basic financial statements. -16- A 0 w H W a W w W M-1 a H H w O z Q F 0 0 N o" M W H W Q U w ~-. ^ ~-. ^ d' rt ~-+ ~n ~ O N ~--~ M O~ N Q~ O ~--~ ~O ~' ~ M O ~O N N M O ~t ~ oo t~ a\ d' N ~ '-. ..i ~ ~ ~ ~..i ~ b4 ~ i ~ ~ y ~ N N .~ N .~. ~ Q ~ ~ Q a> y az ~~ ~--~ ~ °~ a~i . ~ ~ ~ ~ ~ U zU °¢ ~ ~ ~ ~ i I ~ ~ V' ~--~ ~n COI O N ~ M ~ N O~ O .--~ \O ~ .--~ M M ~ O ~ ~ N ~G N N M O mot' 00 (~ O~ ~ N ~--~ ~. ~ ~ O .--. Y "~' ~, ~ U ;~ ~ O ~ ~ ~ U ~ ~ ~ ~ ~ o N ~ cd Y ~ ~ ~ O ~ o a b~UA t.,~ .U cQ y~ U rig ~) a~ N fsl ~ ~ ~ ~ ~ ~ r ~ ~ 6R oooM ' l ~ t~ N i~ ~n N o0 mot' N C~ ' ~ ~ N M N o0 h M O o0 l~ ~O V') 00 ~' 00 M s9 ~ 00 d' ~ O ~ M M ~t ~' Vl N O O oo N ~ .-. ~ ~ ~ ~ O~ ~ O ~ M 00 M O .--~ M l~ t ~ V~ N ~C .-i V'1 00 N ~ ~ ~ O N ~ V' M ~O ' ~ M N V'1 ~O N M N O t~ C~ M ~--~ l~ D1 ~D O~ ~ 0o O~ O~ M N N N O d- ~n (~ ~ 00 M ~O lp 01 ~i ~--~ M N M 01 t~ ~O •--i •--~ M ~ l0 N [~ ~ \O N ~O o0 M t~ ~ ~ .-• o 0 v N M ~ r-+ d' l~ N M O\ '-+ O l~ vi .-+ 00 O .--+ M M 69 ^ 00 00 ~ ~ ~ ~ ~-+ to O lp N M '-+ ~O N M M ~--~ vl 0 ~D l~ t~ O 00 O\ O~ O~ 00 O~ ~O r+ t ~ N ~n ~O ~O O\ 01 ~O 01 O ~O M 00 ~' O~ ~C N N o0 M N N~ ~ v N N v .--. --~ . 64 ' ' ' O O N ~O ~ N ~ O vl ~ 01 ~ O~ O l~ O~ M O N O N M ~--~ h M N N N O ~o ~O ~O ~D N ~O o0 V7 .-+ M N M N t~ O O V'1 ri o0 d' ~D N ~O o0 V7 M N ~ O~ N r-+ _ ~I M 6~4 ,__, ~ ~ ~ ~, ~ ~" N U ~ ~; r., bn .~ ~ ~ ~ p~ ~ oo N oo ~q ~ a> ~ ~ ~ 0 ~ ~ ~ ~ d~ l~ ~ ~ ~ U b~A ~ ' N +v3 ~ N ~ ~ ~ N y N ~ U ~ U N ~ U ~ d' N ~O M y a.. ° .+ r ~ U ~ ~ ~ by S •' ~ o vi vi ~p ~, ^' cd ;,~ b ~ ~n v ~ . ~ N ~ ~ . a a ~O M ~ 01 O O ~., U s yy ~. r ~ y N ~ r + N v ~i «S ~i v cV nj ~ M ~ "d ¢ Q T-~ ow~~ ~ ~ H ~ ~ ~z z ' ' ~ ~ b ~ ~ ~ ~ O ~ '~'',' y y ~ O " ~ " U ~' ~ p., ~ ~ ~ N ,7 ~ i ~ ~ ~ ~ O ~ a ~ O b A c d ~ O b p ~ ~ ~ ~ ~ ~ Q" N~ ~ ~ ~ U ~ ~ N ~ a~ ^ ' ~" ~ ~ ..~. y ' " tN, O E"'i U •~ y N cd '~ O O E"' F"'' ~ C7E~a a a~- ~ 30 r m .~ ~~ .~ ' O y 0 a~ a~ VILLAGE OF TEQUESTA, FLORIDA BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2008 ASSETS Cash and cash equivalents Investments Receivables, net Inventories Restricted assets: Investments Other assets Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Accrued liabilities Due to other governments Deferred revenue Other current liabilities Total liabilities Fund balances: Reserved for: Inventories Encumbrances Unreserved, designated for, reported in: General fund: Designated for disaster relief Capital improvement fund: Bridge repair 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 Other Total Governmental Governmental General Funds Funds $ 1,764,023 $ 1,263,202 $ 3,027,225 3,510,270 - 3,510,270 375,589 - 375,589 41,976 - 41,976 201,835 - 201,835 77,097 - 77,097 5,970,790 1,263,202 7,233,992 102,497 - 102,497 362,612 - 362,612 2,852 - 2,852 183,196 55,412 238,608 56,825 - 56,825 707,982 55,412 763,394 41,976 - 41,976 40,220 12,752 52,972 1,000,000 - 1,000,000 - 330,000 330,000 4,180,612 - 4,180,612 - 369,490 369,490 - 378,505 378,505 - 95,006 95,006 - 22,037 22,037 5,262,808 1,207,790 6,470,598 $ 5,970,790 $ 1,263,202 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 11,102,637 Net pension asset is not considered to represent a financial asset 418,939 Long-term liabilities, including bonds payable, not due and payable in the current period and therefore are not reported in the governmental funds (4,573,320) Net assets of governmental activities $ 13,418,854 See notes to basic financial statements. -18- VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2008 Other Total Governmental Governmental General Funds Funds Revenues: Ad valorem taxes $ 5,661,200 $ - $ 5,661,200 Other taxes 1,123,272 87,167 1,210,439 Intergovernmental 783,034 - 783,034 Franchise fees 44,270 418,026 462,296 Charges for services 574,938 - 574,938 Intragovernmental 280,100 - 280,100 Grants and contributions 18,711 57,736 76,447 Licenses and permits 299,059 - 299,059 Investment earnings 141,604 10,998 152,602 Fines and forfeitures 40,079 700 40,779 Miscellaneous 38,242 - 38,242 Rents and royalties 103,627 - 103,627 Impact fees 2,575 - 2,575 Total revenues 9,110,711 574,627 9,685,338 Expenditures: Current: General government Public safety Transportation Leisure services Capital oz~tlay Debt service: Principal Interest Fiscal charges Total expenditures 1,220,238 - 1,220,238 5,439,202 - 5,439,202 692,552 - 692,552 467,740 - 467,740 172,579 84,794 257,373 312,896 259,846 572,742 184,246 15,990 200,236 5,890 - 5,890 8,495,343 360,630 8,855,973 Excess 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 615,368 213,997 829,365 473,700 450,600 924,300 (330,000) (473,700) (803,700) 143,700 (23,100) 120,600 759,068 190,897 949,965 4,503,740 1,016,893 5,520,633 $ 5,262,808 $ 1,207,790 $ 6,470,598 See notes to basic financial statements. -19- VILLAGE OF TEQUESTA, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FISCAL YEAR ENDED SEPTEMBER 30, 2008 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) $ 949,965 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 $ 257,373 Depreciation expense (655,885) Net adjustment (398,512) 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 financial resources of governmental funds. The detail of the differences are as follows: Principal payments: 1994 revenue bonds 259,846 Notes payable 200,145 Capital leases 112,751 Net adjustment 572,742 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds: The details of the difference are as follows: Compensated absences 7,715 Net pension expenses 63,325 Change in net assets of governmental activities (Page 17) $1,195,235 See notes to basic financial statements. -20- VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF NET ASSETS PROPRIETARY FUNDS SEPTEMBER 30, 2008 Business-type Activities Water Nonmajor Fund Funds Totals ASSETS Current assets: Cash and cash equivalents $ 2,787,142 $ 31,683 $ 2,818,825 Investments 355,929 316,630 672,559 Accounts receivable, net 209,562 7,875 217,437 Inventories 31,728 108 31,836 Other assets 54,837 296 55,133 Restricted assets: Investments 125,760 13,859 139,619 Total current assets 3,564,958 370,451 3,935,409 Non-current assets: Capital assets not being depreciated 111,899 - 111,899 Capital assets being depreciated, net 18,746,277 1,717,284 20,463,561 Total non-current assets 18,858,176 1,717,284 20,575,460 Total assets 22,423,134 2,087,735 24,510,869 LIABILITIES AND NET ASSETS Current liabilities: Accounts payable 94,789 4,533 99,322 Retainage payable 1,000 - 1,000 Accrued liabilities 28,553 - 28,553 Customer deposits 16,975 - 16,975 Current maturities of long-term debt 261,178 - 261,178 Current portion of compensated absences 4,780 - 4,780 Other current liabilities 59,884 - 59,884 Total current liabilities 467,159 4,533 471,692 Long-term liabilities: Compensated absences 141,529 1,854 143,383 Notes payable (net of deferred loss on refunding) 6,231,293 - 6,231,293 Total long-term liabilities 6,372,822 1,854 6,374,676 Total liabilities 6,839,981 6,387 6,846,368 Net assets: Invested in capital assets, net of related debt 12,365,705 1,717,284 14,082,989 Unrestricted 3,217,448 364,064 3,581,512 Total net assets $15,583,153 $2,081,348 $17,664,501 See notes to basic financial statements. -21- VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS PROPRIETARY FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2008 Operating revenues: Charges for services 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 (loss) Non-operating revenues (expenses): Connection fees Miscellaneous revenue Investment income Interest expense Other fiscal charges Total non-operating revenues (expenses) Income (loss) before transfers Transfers out Change in net assets Net assets, beginning Net assets, ending Business-type Activities Water Nonmajor Fund Funds Totals $ 3,463,564 $ 702,168 $ 4,165,732 3,463,564 702,168 4,165,732 1,280,519 - 1,280,519 747,865 - 747,865 - 109,620 109,620 - 414,481 414,481 265,000 15,100 280,100 334,717 - 334,71 905,260 96,043 1,001,303 3,533,361 635,244 4,168,605 (69,797) 66,924 (2,873) 37,806 - 37,806 2,149 - 2,149 72,81 i 14,000 86,811 (221,237) - (221,237) (5,828) - (5,828) (114,299) 14,000 (100,299) (184,096) 80,924 (103,172) - (120,600) (120,600) (184,096) (39,676) (223,77?) 15,767,249 2,121,024 17,888,273 $15,583,153 $ 2,081,348 $17,664,501 See notes to basic financial statements. -22- VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2008 Business-type Activities Water Noninajor Fund Funds Totals Cash flows from operating activities: Cash received from customers, governments and other funds $ 3,545,990 $ 701,518 $ 4,247,508 Cash paid to suppliers (2,227,533) (513,535) (2,741,068) Cash paid to employees (1,130,180) 47,617) (1,177,797) Net cash provided by operating activities 188,277 140,366 328,643 Cash flows from non-capital financing activities: Transfers to other funds - (120,600) (120,600) Net cash used in non-capital financing activities - 120,600) (120,600) Cash flows from capital and related financing activities: Acquisition and construction of capital assets (11,355) {26,062) (37,417) Proceeds from connection fees 37,806 - 37,806 Proceeds from notes payables 6,554,935 - 6,554,935 Principal payments on long term debt (63,247) - (63,247) Bond refunding payments (7,025,063) - (7,025,063) Interest paid (221,237) - (221,237) Net cash used in capital and related financing activities (728,162) (26,062) (754,224) Cash flows from investing activities: Sales of investments, net 2,782,470 22,404 2,804,874 Interest received on investments 69,132 14,000 83,132 Net cash provided by investing activities 2,851,602 36,404 2,888,006 Net increase in cash and cash equivalents 2,311,718 30,108 2,341;826 Cash and cash equivalents, beginning 475,424 1,575 476,999 Cash and cash equivalents, ending $ 2,787,142 $ 31,683 $ 2,818,825 Adjustments to reconcile operating income to net cash provided by operating activities: Operating income (loss) $ (69,797) $ 66,924 $ (2,873) Depreciation and amortization 905,260 96,043 1,001,303 Changes in operating assets and liabilities: (Increase) decrease in: Accounts receivable 82,426 (650) 81,776 Inventories (9,661) (108) (9,769) Other assets 103,988 (296) 103,692 Increase (decrease) in: Accounts payable and accrued liabilities (524,998) {21,547) (546,545) Compensated absences (667) - (667) Customer deposits (298,274) - (298,274) Net cash provided by operating activities $ 188,277 $ 140,366 $ 328,643 See notes to basic financia l statements. -23- VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS SEPTEMBER 30, 2008 ASSETS Cash and cash equivalents Investments, at fair value: Corporate stocks Corporate bonds Government backed assets Contribution receivable Accrued interest receivable Due from broker Total assets LIABILITIES AND NET ASSETS Accounts payable Total liabilities Net assets held in trust for pension benefits Pension Trust Funds $ 385,638 2,867,957 550,712 1,463,162 94,619 22,138 14,884 5,399,110 21,785 21,785 $ 5,377,325 See notes to basic financial statements. -24- VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FIDUCIARY FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2008 Pension Trust ADDITIONS Funds Contributions: Employer $ 574,922 Employee 197,03 8 Total contributions 771,960 Investment income Net depreciation in fair value of investments (776,419) Investment earnings 142,100 (634,319) Less investment expenses 48,911 Net investment loss (683,230) Total additions 88,730 DEDUCTIONS Pension benefits 38,851 Operating expenses 45,757 Total deductions 84,608 Net increase 4,122 Net assets held in trust for pension benefits: Net assets, beginning 5,373,203 Net assets, ending $ 5,377,325 See notes to basic financial statements. -25- NOTES TO BASIC FINANCIAL STATEMENTS VII.LAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED SEPTEMBER 30, 2008 NOTE 1. SUlVIlVIARY 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 fmancial 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 financial 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 financial 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 financial 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. SITMMARY 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 charges 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 are 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 financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial 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 financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Properly taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial 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 for the majority of 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, are 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 fund: 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 Village also reports the following nonmajor government funds: The Special Revenue Fund had a total fund balance of $369,490 at 9/30/2008. The fund was created to account for the Improvement Revenue Refunding Bond Series 1994. On June 20, 2008 the Village paid the remaining balance of $259,846 in full. There were no early payment penalties and the Village avoided an additional $8,295 in interest. 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 Capital Projects Fund accounts for the acquisition or construction of various major capital 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. SUMI~7ARY 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 of 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 financial 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 Payabtes 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 financial 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 and year end workpaper files. Capital assets are defined by the Village as assets with an -30- 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 (Continued) 4. Capital Assets (Continued) 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 2008. Capital assets of the Village are depreciated using the straight line method over the following estimated useful lives: R.O. P1andWells 40 - 50 years Buildings 20 - 40 years Improvements 20 - 30 years Equipment 2 -15 years 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 financial statements, and proprietary fund types in the fund financial 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. SUMMARY 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 financing sources while discounts on debt issuances are reported as other financing 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 15~ and billed the following October. They are due and payable on November 1 ~` 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 for operating purposes of property at January 1, 2007, upon which the 2007-2008 levy was based, was approximately $1.02 billion. 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, 2008 was 5.7671 mills per $1,000 of assessed valuation. There were no material delinquent property taxes at September 30, 2008. NOTE 3. DEPOSITS AND INVESTMENTS Deposits All of the Village's deposits are held in qualified public depositories pursuant to State of Florida Statutes, Chapter 280, Florida Security for Public Deposits Act. Under the Act, every qualified public depository shall deposit with the Treasurer eligible collateral of the depository to be held subject to his or her order. The Treasurer, by rule, shall establish minimum required collateral pledging levels. The pledging level may range from 25% to 125% of the average monthly balance of public deposits depending upon the depository's financial condition and establishment period. All collateral must be deposited with an approved financial institution. Any potential losses to public depositors are covered by applicable deposit insurance, sale of securities pledged as collateral and, if necessary, assessments against other qualified public depositories of the same type as the depository in default. Investments The Village has adopted an investment policy in accordance with Florida Statutes to establish guidelines for the efficient management of its cash reserves. The Village is authorized to invest in obligations of the U.S. Treasury, its agencies and instrumentalities, certificates of deposit, Local Government Surplus Funds Trust Fund, any intergovernmental investment pools authorized pursuant to Chapter 163 of the Florida Statutes, SEC registered money market funds with the highest credit quality rating from a nationally recognized rating agency, and securities of any interest in any open-end or closed-end management type investment company or investment trust registered under the Investment Company Act of 1940, provided that the portfolio is limited to obligations of the U.S. government, its agencies and instrumentalities and to repurchase agreements fully collateralized by such U.S. government obligations and provided that such investment company or investment trust takes delivery of such collateral either directly or through an authorized custodian. -33- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) NOTE 3. DEPOSITS AND INVESTMENTS (Continued) Investments (Continued) The State Board of Administration (SBA) administers the Local Government Surplus Funds Trust Fund (LGII') and the Fund B Surplus Funds Trust Fund (Fund B), both of which are governed by Chapter 19-7 of the Florida Administrative Code and Chapters 218 and 215 of the Florida Statutes. These rules provide guidance and establish the policies and general operating procedures for the administration of the LGIP and Fund B. The LGIP is not a registrant with the Securities and Exchange Commission (SEC); however, the Board has adopted operating procedures consistent with the requirements fora 2a-7 fund, which permits money market funds to use amortized cost to maintain a constant net asset value (NAV) of $1 per share. The fair value of the position in the LGIP is equal to the value of the pool shares. The Fund B is accounted for as a fluctuating NAV pool. As of September 30, 2008, the fair value factor for Fund B was $.798385 per share. The Fund B is not subject to participant withdrawal requests. Distributions from Fund B, as determined by the SBA, are effected by transferring eligible cash or securities to the LG1P, consistent with pro rata allocation of pool shareholders of record at the creation of Fund B. One hundred percent of such distributions from Fund B are available as a liquid balance within the LGIP. The investments in the LGIP and Fund B are not insured by FDIC or any other governmental agency. As of September 30, 2008, the Village had the following investments: Weighted Fair Average Value Maturi LGIP Fund B $ 4,812,830 8.5 days 341,453 9.36 years $ 5,154,283 As of September 30, 2008, the retirement plan had the following debt securities: Investment Maturity (In Years) Less than Retirement Plan Corporate Bonds Retirement Plan U.S. Agencies Retirement Plan U.S. Treasuries Fair Value 1 Year 1-5 Years $ 550,712 $ - $ 550,712 1,296,501 - 1,296,501 166,661 - 166,661 $2,013,874 $ - $2,013,874 -34- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) NOTE 3. DEPOSITS AND INVESTMENTS (Continued) Interest Rate Risk 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 parameters 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 retains a monitoring service to evaluate and report on a quarterly basis the rate of return and relative performance of the Funds. 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. Custodial Credit Risk -Investments 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 a broker-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, 2008 for the government's individual major funds, non-major and fiduciary funds in the aggregate, including the applicable allowance for uncollectible accounts, are as follows: Nonmajor Pension and Other Trust General Water Funds Funds Total Customers billed $138,350 $ 206,671 $ 752 $ - $ 345,773 Other taxes 156,960 - - - 156,960 Miscellaneous 6,492 2,830 2,404 131,641 143,367 Employees 864 - - - 864 Intergovernmental 104,402 4,561 4,719 - 113,682 Gross receivables 407,068 214,062 7,875 131,641 760,646 Less allowance for uncollectibles (31,479 (4,500) - - (35,979) Net total receivables $ 375,589 $ 209,562 $ 7,875 $131,641 $ 724,667 -35- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) NOTE 4. RECEIVABLES (Continued) 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. At the end of the current fiscal year, various components of unearned revenue reported in the governmental funds were as follows: Prepayments on Sprint lease (general fund) $ 91,234 Prepayments on T-Mobile lease (general fund) 8,151 Prepayments on Nextel lease (general fund) 67,489 Licenses and registrations not yet due (general fund) 4,602 Licenses and registrations not yet due (special revenue fund) 55,412 Permits not yet due (general fund) 3,720 Sponsorship -deferred revenue 8,000 $ 238,608 NOTE 5. INTERFUND TRANSFERS Inter-fund transfers during the year ended September 30, 2008 aze as follows: Transfers In Transfers Out General fund Non-major governmental Stormwater utility Total Non-major General Governmental Fund Fund Total $ - $ 330,000 $ 330,000 473,700 - 473,700 - 120,600 120,600 $ 473,700 $ 450,600 $ 924,300 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, 2008, the Enterprise Funds remitted $280,100 to the General Fund for Administrative Management fees. This amount is reflected as Intra- governmental 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, 2008 consist of the following accounts: SBA Fund NOTE 7. CAPITAL ASSETS Capital asset activity for the year ended September 30, 2008 was as follows: Governmental 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 $ 341,454 Beginning Ending Balance Additions Deductions Balance $ 402,935 $ - $ - $ 402,935 962,255 69,686 (962,252 69,689 1,365,190 69,686 (962,252 472,624 7,790,354 253,168 - 8,043,522 2,157,358 727,654 - 2,885,012 3,901,219 169,119 (148,829) 3,921,509 13,848,931 1,149,941 148,829 14,850,043 Less accumulated depreciation for: Buildings Improvements other than buildings Equipment Total accumulated depreciation Total capital assets being depreciated Governmental activity capital assets, net (712,559) (433,220) (2,567,193) (3,712,972) 10,135,959 $11,501,149 -37- (207,422) (100,065) (344,625 652,112 497,829 $ 567,515 - (919,981) - (533,285) 145,054 (2,766,764) 145,054 (4,220,030) (3,775) 10,630,013 $ (966,027) $11,102,637 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 Beginning Ending Balance Additions Deductions Balance $ 83,335 $ - $ - $ 83,335 - 28,564 - 28,564 83,335 28,564 - 111,899 979,512 - - 979,512 29,377,857 8,400 (50,000) 29,336,257 1,124,622 50,453 - 1,175,075 31,481,991 58,853 50,000 31,490,844 Less accumulated depreciation for: Buildings Improvements other than buildings Equipment Total accumulated depreciation Total capital assets being depreciated, net Business-type activity capital assets, net (479,604) (8,872,824) (673,552) 10,025,980) 21,456,011 $ 21,539,346 (24,488) - (504,092) (894,270) - (9,767,094) 82,545 - (756,097) 1,001,303 - (11,027,283) 942,450 50,000 20,463,561 $ 913,886 $ 50,000) $ 20,575,460 Depreciation expense was charged to functions/programs of the Village as follows: Governmental activities: General government $ 156 281 Public safety 376,348 Transportation 47,985 Leisure services 71,498 Total depreciation expense -governmental activities $ 652,112 Business-type activities: Water $ 905,260 Nonmajor funds 96 043 Total depreciation expense -business-type activities $1,001,303 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 15m. The lease expires on April 15, 2012. -38- 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, 2008: Fiscal year ending September 30: 2009 $ 46,720 2010 46,720 2011 46,720 2012 46,720 Total minimum lease payments - 186,880 Less amount representing interest (15,721 Present value of future minimum lease payments $171,159 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 3.84% with monthly principal and interest payments totaling $2,802. The following is a schedule of the future minimum lease payments under this capital lease arrangement at September 30, 2008. Fiscal year ending September 30: 2009 $ 33,631 2010 22,420 Total minimum lease payments 56,051 Less amount representing interest (1,812) Present value of future minimum lease payments $ 54,239 Changes in Long-Term Debt -Capital Leases The Village entered into a capital lease with GMAC Financial Services in the amount of $30,677 dated December 10, 2003 for the financing of a Chevrolet Tahoe. The applicable interest rate was 6.15% with monthly principal and interest payments of $595. The lease was due to expire on December O1, 2008. Payments totaling $8,001 were made in fiscal year 2008, which included a final payment of $3,489 made on June 12, 2008. This generated a saving of $84. The Village entered into a capital lease in the amount of $136,789 dated Apri121, 2006 for the financing of 800mghz radios for the police department. The applicable interest rate was 4.38% with monthly principal and interest payments totaling $2,542. The lease was due to expire on Apri121, 2011. On September 28, 2007 the Village paid down $66,360 of principal on the loan. Payments totaling $34,658 were made in fiscal year 2008 which included a final payment of $12, 840 on June 19, 2008. This generated a saving of $2,862. -39- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) NOTE 9. LONGTERM DEBT The following is a summary of long-term debt for the year ended September 30, 2008: Governmental Activities Note Payable - 2002 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 ftom 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. Debt service requirements to maturity are as follows: Principal Interest Total Year ending September 30: 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 247,810 124,692 372,502 2014-2018 1,411,056 451,451 1,862,507 2019-2022 1,367,204 122,802 1,490,006 Total $ 3,917,907 $1,297,111 $ 5,215,018 Business-type Activities 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 were 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. 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 without any prepayment premium. As of September 30, 2008, $146,275 has been prepaid on the note. -40- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) NOTE 9. LONGTERM DEBT (Continued) Business-type Activities (Continued) Water Expansion Loan (Continued) Debt service requirements to maturity are as follows: Principal Interest Payments Year ending September 30: 2009 2010 2011 2012 2013 2014-2018 2019-2021 Total. $ 24,000 $ 20,579 $44,579 25,000 19,388 44,388 26,000 18,148 44,148 27,000 16,859 43,859 29,000 15,520 44,520 167,000 54,683 221,683 116,895 11,492 128,3 87 $ 414,895 $156,669 $ 571,564 Note Payable - 2008 On July 14, 2008, the Village entered into a $6,554,935 loan agreement with Bank of America, with an interest rate of 3.6852% per annum, maturing on March 1, 2028. Principal and interest are paid monthly commencing on August 1, 2008 with interest paid in arrears. The proceeds from the note were used to finance the advance refunding of the Village's 1998 Water Revenue Bonds. At September 30, 2008, the outstanding balance on the note was $6,514,745. Principal Interest Payments Year ending September 30: 2009 $ 237,178 $ 239,306 $ 476,484 2010 237,934 230,512 468,446 2011 246,910 221,463 468,373 2012 255,830 212,671 468,501 2013 267,218 202,353 469,571 2014-2018 1,503,787 851,450 2,355,237 2019-2023 1,813,324 542,801 2,356,125 2024-2028 1,952,564 171,938 2,124,502 $ 6,514,745 $ 2,672,494 $ 9,187,239 -41- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) NOTE 9. LONGTERM DEBT (Continued) Changes in Long-Term Debt The following is a summary of changes in long-term liabilities of the Village for the year ended September 30, 2008: Governmental activities: Revenue bonds - 1994 Note payable - 2002 Capital leases Compensated absences Business-type activities: Revenue bonds - 1998 Unamortized bond discount Note payable - 2004 Note payable - 2008 Unamortized deferred loss on refunding of debt Compensated absences Beginning Balance Additions Deletions $ 259,846 $ - $ (259,846) 4,118,052 - (200,145) 338,150 - (112,751) 437,728 27,034 (34,748) $5,153,776 $ 27,034 $ 607,490 $ 6,670,000 $ (82,105) 6,587,895 437,952 6,554,935 $ (6,670,000) 82,105 (6,587,895) (23,057) (40,190) - (441,849) 4,680 148,231 18,034 (18,102) $ 7,174,078 $ 6,131,120 $ (6,664,564 Ending Within Balance One Year $ - $ - 3,917,907 208,881 225,399 72,674 430,014 36,050 $4,573,320 $ 317,605 $ - $ - 414,895 24,000 6,514,745 237,178 (437,169) - 148,163 4,780 $ 6,640,634 $ 265,958 All governmental compensated absences activity is reported and paid from the general fund. Defeasance of Long-Term Debt On July 14, 2008 the Village of Tequesta defeased $6,670.000 of outstanding bonds remaining in the Series 1998 $7,915,000 Water Revenue Bonds, by placing the proceeds of a new loan in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account's asset and liability for the defeased bonds were not included in the Village's financial statements as of that date. In accordance with a thirty (30) day call notice requirement, the Village called the bonds on July 14, 2008. On August 14, 2008, the 1998 Water Revenue Bonds were paid in full using the net proceeds of the new debt, $6,524,935, plus a net cash payment of $173,833. Accordingly, there is no balance remaining on this debt at September 30, 2008. 'The reacquisition price of the new debt exceeded the net carrying amount of the old debt by $441,849. This amount is being netted against the new debt and amortized over the life of the new debt. The advance refunding of this debt reduced total debt service payments over the next 236 months by $1,081,300, resulting in an economic gain of $674,947 (the difference between the present value of the debt service payments on the old and new debt). -42- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) NOTE 9. LONGTERM DEBT (Continued) Early Repayment of Improvement Revenue Bonds -Series 1994 The village paid off the remaining balance of $259,846 on the Improvement Revenue Refund Bonds, Series 1994 on June 20, 2008. There were sufficient funds to pay off the balance, there were no early payment penalties and the Village avoided an additional $8,295 in interest payments. NOTE 10. REQUIRED RESERVES With the defeasance of the Water Revenue Bonds Series 1998, and the early repayment in full of the Improvement Bond Revenue, Series 1994 on June 20, 2008, there are no requirements for the establishment of specific 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 financial report that includes financial statements and required supplementary information for the FRS. The latest available report was for the fiscal year ended June 30, 2008. 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 3 23 1 5-9000 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 -43- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) NOTE 11. FLORIDA RETIItEMENT SYSTEM Funding Policy 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, 2008 were as follows: regular employees - 9.85%, special risk employees - 20.92% and senior management - 13.12%. These rates include 1.11% for the employer Health Insurance Subsidy contribution, and 0.05% for an administrative fee. The Village's contributions to the FRS for the fiscal years ended September 30, 2006, 2007, and 2008 were $137,827, $187,647 and $160,046 respectively, which were equal to the required contributions for each fiscal year. NOTE 12. VILLAGE EMPLOYEES' RETIItEMENT 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. -44- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Pension Trust Funds (Continued) 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. Membership in each plan consisted of the following at September 30, 2008: FPTF PPTF GPTF Covered group: Active members 19 12 36 Inactive members 1 - 1 Total ZO 12 37 Benefit provisions and contribution requirements of plan members and the Village are established, and maybe 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: -45- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Conrinued) NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued) PLAN DESCRIPTION AND CONTRIB UTION INFORMATION (Continued) a. Public Safety Officers' Trust Fund (Continued) Plan Description (Continued) 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) oror (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. 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 Effective September 5, 2008, Firefighters and Police Officers are required to contribute 5% of their compensation to the plan. Prior to September 5, 2008, Firefighters contributed 6.1 % 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 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, 2008. -46- 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) Funding Policy (Continued) FIREFIGITERS' PENSION FUND STATEMENT OF FIDUCIARY NET ASSETS SEPTEMBER 30, 2008 ASSETS Investments $ 3,065,13 7 Due from Broker 10,828 Accrued interest 12,414 Contributions receivable 79,072 Total assets 3,167,451 LIABII,ITIES AND NET ASSETS Accounts payable 10,458 Due to other funds - Total liabilities 10,458 Net assets held in trust for pension benefits $3,156,993 FIREFIGHTERS' PENSION FUND STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FISCAL YEAR ENDED SEPTEMBER 30, 2008 ADDITIONS Contributions $ 364,496 Investment income, net (406,714) Total additions (42,218) DEDUCTIONS Pension benefits and refunds - Operating expenses 19,060 Total deductions 19,060 Net increase (61,278) Net assets held in trust for pension benefits: Net assets, beginning 3,218,271 Net assets, ending $3,156,993 -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' Trull Fund (Continued) Funding Policy (Continued) The Police Officers' Pension Fund (part of the Public Safety Officers' Trust Fund) does not issue 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, 2008. POLICE OFFICERS' PENSION FUND STATEMENT OF FIDUCIARY NET ASSETS SEPTEMBER 30, 2008 ASSETS Investments $1,147,889 Due from Broker 4,056 Accrued interest 4,650 Contribution receivable 5,411 Total assets 1,162,006 LIABILITIES AND NET ASSETS Accounts payable 3,871 Due to other pensions - Total liabilities 3,871 Net assets held in trust for pension benefits $1,158,135 POLICE OFFICERS' PENSION FUND STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FISCAL YEAR ENDED SEPTEMBER 30, 2008 ADDITIONS Contributions $ 195,741 Investment income, net 148,148 Total additions 47,593 DEDUCTIONS Pension benefits and refunds 10,673 Operating expenses 6,821 Total deductions 17,494 Net increase 30,099 Net assets held in trust for pension benefits: Net assets, beginning 1,128,036 Net assets, ending $1,158,135 -48- 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 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. Eazly 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: 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 fmal 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 yeazs 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. -49- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued) PLAN DESCRIPTION AND CONTRIB UTION INFORMATION (Continued) b. General Employees' Pension Trust Fund (Continued) Funding Policy (Continued) The General Employees' Pension Trust Fund does not issue separate stand alone financial 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, 2008. GENERAL EMPLOYEES' PENSION TRUST FUND STATEMENT OF FIDUCIARY NET ASSETS SEPTEMBER 30, 2008 ASSETS Cash $ 2,156 Investments 1,052,287 Accrued interest 5,074 Contributions receivable 10,136 Total assets 1,069,653 LIABILITIES AND NET ASSETS Accounts payable 7,456 Due to general fund - Total liabilities 7,456 Net assets held in trust for pension benefits $1,062,197 GENERAL EMPLOYEES' PENSION TRUST FUND STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FISCAL YEAR ENDED SEPTEMBER 30, 2008 ADDITIONS Contributions $ 211,723 Investment income, net (128,368) Total additions 83,355 DEDUCTIONS Pension benefits and refunds 28,178 Operating expenses 19,876 Total deductions 48,054 Net increase 35,301 Net assets held in trust for pension benefits: Net assets, beginning 1,026,896 Net assets, ending $1,062,197 -50- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued) PLANDESCRIPTIONAND CONTRIBUTIONINFORMATION(Continued) Annual Pension Cost The Village's 2008 annual pension cost and actual contributions for each plan are shown below. The required contributions were determined as part of the October 1, 2007 actuarial valuation for each plan. Three-Year Trend Information Annual Percentage Net Pension Pension of APC Obligation Fiscal Year Ending Cost (APC) Contributed Asset Firefighters' Retirement System: September 30, 2006 $ 169,446 100.5% $ (158,905) September 30, 2007 176,060 105.1% (167,810) September 30, 2008 210,494 97.9% (163,478) Police Officers' Retirement System: September 30, 2006 $ 108,774 98.3% $ (89,209) September 30, 2007 113,012 103.9% (93,577) September 30, 2008 64,360 187.0% (149,587) General Employees' Retirement System: September 30, 2006 $ 89,226 102.2% $ (44,396) September 30, 2007 92,789 132.0% (74,056) September 30, 2008 98,847 132.2% (105,874) Components of Annual Pension Cost and Net Pension Asset Police General Firefi hg ters, Officers' Employees Annual required contribution (ARC) $ 206,162. $ 61,068 Interest on net pension obligation (NPO) (13,425) (7,486) Adjustment to ARC (17,757) (10,778) Annual pension cost 210,494 64,360 Actual contributions 206,162 120,370 Increase (decrease) in net pension obligation (asset) 4,332 (56,010) Net pension obligation (asset), beginning (167,810) (93,577) Net pension obligation (asset), ending $ (163,478 $ (149,587) $ 95,972 (5,924) (8,799) 98,847 130,665 (31,818) (74,056) $ (105,874) -51- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued) PLAN DESCRIPTION AND CONTRIB UTION INFORMATION (Continued) Components of Annual Pension Cost and Net Pension Asset (Continued) Valuation date Actuarial cost method Amortized method Remaining amortization period Asset valuation method Actuarial assumptions: Investment rate of return* Projected salaryincrease* *Includes inflation at Cost of living adjustments Police General Firefighters' Officers' Employees' Pension Pension Pension Fund Fund Fund 10/ 1 /2007 10/ 1 /2007 10/ 1 /2007 Aggregate Aggregate Aggregate N/A N/A N/A N/A N/A N/A Market Value Market Value Market Value 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. Funding Status and Funding Progress The funded status of the plan as of October 1, 2007, the most recent actuarial valuation date, is as follows: Actuarial Accrued Actuarial Liability Unfunded UAAL as a Value of (AAL) - AAL Funded Covered of Covered Assets Entry Age* (UAAL) Ratio Payroll Payroll ~ ~ (b)-(al a / ~ b-a /c Public Safety Pension Fund $4,080,609 $3,730,247 $ (350,362) 109.4% $1,931,871 (18.1%) General Employees Pension Fund 1,026,897 764,571 (262,326) 134.3% 1,500,201 (17.5%) *Because the aggregate actuarial cost method does not identify or separately amortize unfunded actuarial liabilities, information about the funded status and funding progress was prepared using entry age actuarial cost method and is intended to serve as a surrogate for the funded status and funding progress. The schedule of funding progress, presented as required supplementary information (RSI) following the notes to the financial statements, presents multiyear trend information about whether the actuarial values of plan assets are increasing or decreasing over time relative to the AALs for benefits. -52- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) NOTE 13. COMMITMENTS AND CONTINGENCIES 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. Contracted Services -Refuse and Recycling Collection Effective October 1, 2007, the Village entered into a solid waste and recyclable collection agreement with Waste Management Inc. of Florida for a period of five years beginning October O1, 2007 and expiring September 30, 2012. With this agreement the Village granted Waste Management the exclusive franchise for solid waste collection of residential, commercial, industrial and roll-off refuse, recycling and vegetative waste. Beginning on October Ol, 2008 and on each October 15` thereafter, the rates shall be adjusted to reflect the increase or decrease in CPI (preceding June to June). The CPI adjustment will be applied to 90% of the collection component of the rate. In addition, Waste Management shall annually adjust the applicable rate charged to reflect any change in the cost of diesel fuel determined by reference to EIA/DOE website that reports average prices and the fuel adjustment will be applied to 10% of the collection component of the rate. Contracted Services - Fire./Emergency 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, 2008, fire protection fees received from Jupiter Inlet Colony were $196,338. Construction Commitments Significant construction commitments as of September 30, 2008 are as follows: Estimated Estimated Description Governmental Funds Capital Projects Fund: Bridge Utility Relocation - A&E Beach Road Water Main Replacement Beach Road Water Main Replacement Construction Water Plant Expansion - A&E Expended Cost to Completion to Date Complete Date $ 5,125 $ 40,700 Mar-09 7,500 13,000 Apr-09 - 81,000 Apr-09 18,500 92,500 Jun-09 -53- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 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. While the Village cannot anticipate the areas in which potential claims may arise, the Village purchases commercial insurance to protect against areas of possible exposure germane to municipal entities such as property, liability, automobile, workers' compensation, crime, storage tank, inland marine and railroad coverage. Deductibles and limits vary by coverage and are secured based upon the Village's tolerance of risk retention in each area. Keeping with Village Council's prior direction, the property deductible remains at $100,000 for all perils excluding hurricane/windstorm damage. The named storm deductible is as follows: 5% of the value of the damaged properties per building/per occurrence, subject to the policy deductible, whichever is greater. The Village continues to self insure all properties valued less than $100,000. The Village remains fully insured with the FMIT for workers' compensation coverage with statutory limits. 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 based upon actual versus estimated payroll. As such, the Village received a return of premium credit of $32,066. 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 financial statements. The Village has not been obligated to contribute any funds to the consortium since its inception in 1999. NOTE 16. GASB 45 ACCOUNTING AND FINANCIAL REPORTING BY EMPLOYERS FOR POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS The Village of Tequesta will implement GASB 45 in fiscal year ending September 30, 2009. NOTE 17. SUBSEQUENT EVENT The Improvement Revenue Refunding Bond, Series 1994, was created to account for revenues and expenditures as required by the bond document. On June 8, 2008, the bonds were refunded in full using existing cash. The remaining assets of $139.490 were transferred to the General Fund #001 as directed by Resolution No. 55-08. -54- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) NOTE 17. SUBSEQUENT EVENT (Continued) On December 11, 2008, the Village Council of the Village of Tequesta approved a resolution closing the Improvement Revenue Refunding Bond (IBR) fund #101. -55- REQUIRED SUPPLEMENTAL INFORMATION VILLAGE OF TEQUESTA, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE GENERAL FUND FISCAL YEAR ENDED SEPTEMBER 30, 2008 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 Appropriated fund balance Miscellaneous/contingency Total other financing sources (uses) Budgeted Amounts Actual Original Final Amounts $ 5,575,100 $ 5,575,100 865,800 1,094,973 826,050 826,050 564,228 280,100 1,500 393,800 149,115 38,500 7,835 112,680 10,700 8,825,408 564,228 280,100 24,507 393,800 97,742 38,500 7,835 112,680 10,700 9,026,215 $ 5,661,200 1,123,272 783,034 44,270 574,938 280,100 18,711 299,059 141,604 40,079 38,242 103,627 2,575 9,110,711 Variance with Final Budget - Positive e ative $ 86,100 28,299 (43,016) 44,270 10,710 (5,796) (94,741) 43,862 1,579 30,407 (9,053) 8,125 84,496 1,403,115 1,369,512 1,220,238 149,274 5,377,395 5,765,882 5,439,202 326,680 774,060 817,165 692,552 124,613 562,150 568,180 467,740 100,440 117,500 214,332 172,579 41,753 303,570 312,885 312,896 (11) 186,985 184,375 184,246 129 6,000 6,000 5,890 1 i0 8,730,775 9,238,331 8,495,343 742,988 94,633 (212,116) 615,368 827,484 473,700 473,700 473,700 - (330,000) (330,000) (330,000) - (228,333) 68,641 - (68,641) (10,000) (225) - 225 (94,633) 212,116 143,700 68,416 Net change in fund balance $ - $ - $ 759,068 $ 759,068 See note to budgetary comparison schedule. -56- VILLAGE OF TEQUESTA, FLORIDA NOTE TO THE BUDGETARY COMPARISON SCHEDULE FISCAL YEAR ENDED SEPTEMBER 30, 2008 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: 1) Prior to September 1~`, the Village Manager submits to the Village Council a proposed operating budget for the fiscal year commencing the following October 1~`. 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 $276,175 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. -57- VILLAGE OF TEQUESTA, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS FISCAL YEAR ENDED SEPTEMBER 30, 2008 Fiscal Year Annual Required Contribution Village State Percentage Contribution Contribution Contributed Firefighters' Pension Fund 2003 2004 2005 2006 2007 2008 Police Officers' Pension Fund 2003 2004 2005 2006 2007 2008 General Employees' Pension Fund 2002 2003 2004 2005 2006 2007 2008 $ 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% 171,986 116,915 136,052 147.1 206,162 127,844 15 $,602 138.9% $ 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 87,635 73,932 145.2% 61,068 87,240 70,571 142.9% $ 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% 92,042 122,449 N/A 133.0% 95,972 130,665 N/A 136.1% -58- VILLAGE OF TEQUESTA, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS FISCAL YEAR ENDED SEPTEMBER 30, 2008 Actuarial Accrued Actuarial Liability Unfunded UAAL as a Actuarial Value of (AAL) - AAL Funded Covered of Covered Valuation Assets Entry Age* (UAAL) Ratio Payroll Payroll Date (~ ~b b - a ail / (~ (c~ b - a / c Public Safety 10/01/98 $ 934,659 $ 532,439 $ (402,220) 175.5% $ 967,853 (41.6%) 10/O1/00 1,683,867 834,839 (849,028) 201.7% 1,203,923 (70.5%) 10/01/02 1,875,657 1,428,869 (446,788) 131.3% 2,132,437 (21.0%) 10/O1/03* 1,966,148 1,610,963 (355,185) 122.0% 1,339,667 (26.5%) 10/O1/OS 2,782,953 2,598,331 (184,622) 107.1% 1,650,403 (11.2%) 10/01/07 4,080,609 3,730,247 (350,362) 109.4% 1,931,871 (18.1%) *Start Public Safety Plan only General Employees 10/01/98 $ 934,659 $ 532,439 $ (402,220) 175.5% $ 967,853 (41.6%) 10/O1/00 1,683,867 834,839 (849,028) 201.7% 1,203,923 (70.5%) 10/1/2002* 248,725 222,882 (25,843) 111.6% 866,467 (3.0%) 10/01/03 333,944 264,486 (69,458) 126.3% 1,056,797 (6.5%) 10/Ol/OS 602,280 429,242 (173,038) 140.3% 1,098,039 (15.8%) 10/01/07 1,026,897 764,571 (262,326) 134.3% 1,500,201 (17.5%) *Start General Plan only -59- 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. Capital Projects Fund -This fund is used to account for the acquisition or construction of major capital projects. VILLAGE OF TEQUESTA, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2008 Total Special Special Law Capital Capital Nonmajor Revenue Enforcement Improvement Projects Governmental Fund Fund Fund Fund Funds ASSETS Assets: Cash and cash equivalents $ 424,902 $ 22,037 $ 425,006 $ 391,257 $ 1,263,202 Accounts receivable - - - - - Total assets $ 424,902 $ 22,037 $ 425,006 $ 391,257 $ 1,263,202 LLABILITIES AND FUND BALANCES Liabilities: Deferred revenue $ 55,412 $ - $ - $ - $ 55,412 Total liabilities 55,412 - - - 55,412 Fund balances: Reserved for encumbrances - - - 12,752 12,752 Unreserved, designated: Bridge repair - - 330,000 - 330,000 Unreserved, undesignated reported in: Special revenue fund 369,490 - - - 369,490 Special law enforcement fund - 22,037 - - 22,037 Capital improvement fund - - 95,006 - 95,006 Capital projects fund - - - 378,505 378,505 Total fund balances 369,490 22,037 425,006 391,257 1,207,790 Total liabilities and fund balances $ 424,902 $ 22,037 $ 425,006 $ 391,257 $ 1,263,202 -60- VILLAGE OF TEQUESTA, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2008 Operating revenues: Franchise fees Local business tax Grants and contributions Investment earnings Fines and forfeitures Total revenues Operating expenditures: Capital outlay Debt seivice: 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 Capital Nonmajor Revenue Enforcement Improvement Projects Governmental Fund Fund Fund Fund Funds $ 418,026 $ - $ 87,167 - 10,507 491 - 700 515,700 1,191 259,846 15,990 275,836 - $ - $ 418,026 - - 87,167 - 57,736 57,736 - - 10,998 - - 700 - 57,736 574,627 8,143 76,651 84,794 - - - 259,846 - - - 15,990 - 8,143 76,651 360,630 239,864 1,191 (8,143) 18,915 213,997 120,600 - 330,000 - 450,600 (473,700) - - - (473,700) (353,100) - 330,000 - (23,100) (113,236) 1,191 321,857 (18,915) 190,897 482,726 20,846 103,149 410,172 1,016,893 $ 369,490 $ 22,037 $ 425,006 $391,257 $ 1,207,790 -61- VILLAGE OF TEQUESTA, FLORIDA BUDGETARY COMPARISON SCHEDULE SPECIAL REVENUE FUND FISCAL YEAR ENDED SEPTEMBER 30, 2008 Revenues: Franchise fees Other taxes Unrestricted investment earnings Total revenues Operating expenditures: Debt service: Principal Interest Total expenditures Excess of revenues over expenditures Other financing sources: Transfers in Transfers out Appropriated fund balance Total other financing sources (uses) Net change in fund balance Variance with Final Budget - Budgeted Amounts Actual Positive Ori final Final Amounts e ative $ 395,000 $ 395,000 $ 418,026 $ 23,026 90,000 90,000 87,167 (2,833) 22,390 22,390 10,507 (11,883) 507,390 507,390 515,700 8,310 125,000 259,850 259,846 4 15,990 15,990 15,990 - 140,990 275,840 275,836 4 366,400 231,550 239,864 8,314 60,300 120,600 120,600 - (473,700) (473,700) (473,700) - 47,000 121,550 - (121,550) (366,400 (231,550) 353,100) 121,550 $ - $ - $ (113,236) $ (113,236 -62- VILLAGE OF TEQUESTA, FLORIDA BUDGETARY COMPARISON SCHEDULE SPECIAL LAW ENFORCEMENT TRUST FUND FISCAL YEAR ENDED SEPTEMBER 30, 2008 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts e ative Revenues: Forfeitures/confiscations $ - $ - $ 700 $ 700 Unrestricted investment earnings - - 491 491 Total revenues - - 1,191 1,191 Operating expenditures - - - - Net change in fund balance $ - $ - $ 1,191 $ 1,191 -63- VILLAGE OF TEQUESTA, FLORIDA BUDGETARY COMPARISON SCHEDULE CAPITAL IMPROVEMENT FUND FISCAL YEAR ENDED SEPTEMBER 30, 2008 Revenues Expenditures: Capital outlay Total expenditures Deficiency of revenues over expenditures Other financing sources (uses): Transfers in Allocated 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 $ - $ - $ - $ - 90,000 90,000 8,143 81,857 90,000 90,000 8,143 81,857 90,000 90,000 (8,143) 81,857 330,000 330,000 330,000 - (240,000) (240,000) - 240,000 90,000 90,000 330,000 240,000 $ - $ - $ 321,857 $ 321,857 -64- VILLAGE OF TEQUESTA, FLORIDA BUDGETARY COMPARISON SCHEDULE CAPITAL PROJECTS FUND FISCAL YEAR ENDED SEPTEMBER 30, 2008 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 Ori final Final Variance with Final Budget - Actual Positive Amounts Ne ative $ 212,500 $ 212,500 $ 57,736 $ (154,764) 212,500) (267,936) (76,651) 191,285 212,500 (267,936) (76,651 191,285 _ (55,436 18,915 36,521 - 55,436 - (55,436) - 55,436 - (55,436) $ - $ - $ (18,915) $ 18,915) -65- 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. VILLAGE OF TEQUESTA, FLORIDA COMBINING STATEMENT OF NET ASSETS NONMAJOR ENTERPRISE FUNDS SEPTEMBER 30, 2008 ASSETS Current assets: Cash and cash equivalents Investments Receivables, net Inventories Other assets Restricted assets: Investments Total current assets Non-current assets: Capital assets being depreciated, net Total noncurrent assets Total assets LIABILITIES Current liabilities: Accounts payable Total current liabilities Non-current liabilities: Compensated absences Total non-current liabilities Total liabilities NET ASSETS Net assets: Invested in capital assets, net of related debt Unrestricted Total net assets Total Nonmajor Stormwater Refuse & Enterprise Utili Recycling Funds $ 24,083 $ 7,600 $ 31,683 180,607 136,023 316,630 4,424 3,451 7,875 108 - 108 296 - 296 6,960 6,899 13,859 216,478 153,973 370,451 1,717,284 - 1,717,284 1,717,284 - 1,717,284 1,933,762 153,973 2,087,735 4,533 - 4,533 4,533 - 4,533 1,854 - 1,854 1,854 - 1,854 6,387 - 6,387 1,717,284 - 1,717,284 210,091 153,973 364,064 $1,927,375 $153,973 $2,081,348 -66- VILLAGE OF TEQUESTA, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS NONMAJOR ENTERPRISE FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2008 Operating revenues: Charges for services Total operating revenues Operating expenses: Stormwater Depreciation Purchased services Management services Total operating expenses Operating income (loss) Non-operating revenues: Investment earnings Unrealized loss on investments Total non-operating revenues Income (loss) before contributions and transfers Transfers out Change in net assets Net assets, beginning Net assets, ending Total Nonmajor Stormwater Refuse & Enterprise Utili Recycling Funds $ 299,729 $ 402,439 $ 702,168 299,729 402,439 702,168 109,620 - 109,620 96,043 - 96,043 - 414,481 414,481 9,500 5,600 15,100 215,163 420,081 635,244 84,566 (17,642 66,924 8,390 8,706 17,096 (1,490) (1,606) (3,096) 6,900 7,100 14,000 91,466 (10,542) 80,924 (120,600) - (120,600) (29,134) (10,542) (39,676) 1,956,509 164,515 2,121,024 $1,927,375 $153,973 $2,081,348 -67- VILLAGE OF TEQUESTA, FLORIDA COMBINING STATEMENT OF CASH FLOWS NONMA30R ENTERPRISE FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2008 Total Nonmajor Stormwater Refuse & Enterprise Utili Rec cling Funds Cash flows from operating activities: Cash received from customers, governments and other funds $ 299,847 $ 401,671 $ 701,518 Cash paid to suppliers (67,932) (445,603) (513,535) Cash paid to employees (47,617) - (47,617) Net cash provided by (used in) operating activities 184,298 (43,932) 140,366 Cash flows from non-capital financing activities: Transfers to other funds (120,600 - (120,600) Net cash used in non-capital financing activities (120,600) - (120,600) Cash flows from capital and related financing activities: Acquisition and construction of capital assets 26,062 - (26,062) Net cash used in capital and related financing activities 26,062) - (26,062) Cash flows from investing activities: Purchases (sales) of investments (21,775) 44,179 22,404 Interest received on investments 6,900 7,100 14,000 Net cash provided by (used in) investing activities (14,875) 51,279 36,404 Net increase in cash and cash equivalents 22,761 7,347 30,108 Cash and cash equivalents, beginning 1,322 253 1,575 Cash and cash equivalents, ending $ 24,083 $ 7,600 $ 31,683 Adjustments to reconcile operating income to net cash provided by operating activities: Operating income (loss) $ 84,566 $ (17,642) $ 66,924 Depreciation 96,043 - 96,043 Changes in operating assets and liabilities: (Increase) decrease in: Accounts receivable 118 (768) (650) Inventories (108) (108) Other assets (296) - (296) Increase (decrease) in accounts payable and accrued liabilities 3,975 25,522) (21,547 Net cash provided by operating activities $ 184,298 $ 43,932 $140,366 -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 COMBINING STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS SEPTEMBER 30, 2008 Police General Firefighters' Officers' Employees' Pension Pension Pension Total ASSETS Cash and cash equivalents Investments: Corporate stocks Corporate bonds Government backed assets Due from broker Contributions receivable Accrued interest receivable Total assets $ 263,280 $ 98,598 $ 23,760 $ 385,638 1,591,363 595,963 680,631 2,867,957 342,519 128,273 79,920 550,712 867,975 325,055 270,132 1,463,162 10,828 4,056 - 14,884 79,072 5,411 10,136 94,619 12,414 4,650 5,074 22,138 3,167,451 1,162,006 1,069,653 5,399,110 LIABILITIES AND NET ASSETS Accounts payable Total liabilities 10,458 3,871 7,456 21,785 10,458 3,871 7,456 21,785 Net assets held in trust for pension benefits $ 3,156,993 $1,158,135 $1,062,197 $ 5,377,325 -69- VILLAGE OF TEQUESTA, FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FIDUCIARY FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2008 ADDITIONS Contributions: Employer Employee Total contributions Investment income Net depreciation in fair value of investments Investment earnings Less investment expenses Net investment loss Total additions DEDUCTIONS Pension benefits and refunds Operating expenses Total deductions Net increase (decrease) Net assets held in trust for pension benefits: Net assets, beginning Police General Firefighters' Officers' Employees' Pension Pension Pension Total $ 286,446 $ 157,811 $ 130,665 $ 574,922 78,050 37,930 81,058 197,038 364,496 195,741 211,723 771,960 (463,307) (168,628) (144,484) (776,419) 81,706 29,528 30,866 142,100 (381,601) (139,100) (113,618) (634,319) 25,113 9,048 14,750 48,911 (406,714) (148,148) (128,368) (683,230) (42,218) 47,593 83,355 88,730 - 10,673 28,178 38,851 19,060 6,821 19,876 45,757 19,060 17,494 48,054 84,608 (61,278) 30,099 35,301 4,122 3,218,271 1,128,036 1,026,896 5,373,203 Net assets, ending $ 3,156,993 $1,158,135 $1,062,197 $ 5,377,325 -70- STATISTI~~L S~C~TI~I~ 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 fmancial 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. w ~ ~ i n ~ ~ _ _ ~ M i W m N v i o o O N v i = M ~ 00 O~ t!7 ~!1 M O M U O° ~ .~ r-' M ~ I ° rn ~ t o ~ ~ 0 0 0 N ~O ~O M ~ M ~ .--i ~ ~ . -i N ~ M fA 6~9 69 69 69 614 ~ O ~ ~ O ~t ~ M ~n ~ M N ~ O~ t~ .-, O ~' N ~ vl M O O~ 00 ~ (~ \p V7 to N N M V'1 O 00 0 O~ ~ N M M oo ~ 00 M Qi 01 - ~ O ~ d' O N ~ N ~ oo O~ ~o d ~ N ~ •--~ ~{- N ~n M O oo '--+ V ~ ~--~ lp V') ~ ~ M ~ N 00 O b4 6R 6R 69 6R b9 `O O l M o0 O~ v1 N c7' ~ N ~ O~ [~ ~' .-a 00 ~O O ~O 00 M N ~ O M ~t O~ ~--1 M O~ ~ N [~ M M ~ O ~ M O oo N ~ ~ ~O t~ O\ 00 V'1 I O ~ N ~ M n ~ N ~ ~ N v~ ~ o o N ~ to O --+ .--. --i ~ ~ .--~ ~ .-~ O .-, ~ N b9 ~ 6R . 6R 64 69 6R Q~ ~ 00 l~ ~--+ N M ~D O N ~--~ M ~ ~ ~ ~ ~ O O ~ ~ N . -1 '" ~F t~ O~ .-~ ~ \O A ^ ~ oo ~C ~Y to l~ ~ ~O M [~ O r-+ ^ 7 (~ O .--1 ~ .--+ O M O ~--~ M ~ ' " W N l ~ O~ [~ 00 M lfl [ ~ ~ M N d ~ o ~ ~ ~ ~ o ~ ~ N ~ N z w ~ ~z j 6A ~ 6R 6il 6F3 6R Q ~ ~ ^ ~+ 01 ~ 00 l~ .-+ 00 ~ M O o0 N O E" ~ U oo M N •--~ ~ N ~ O ,--1 ~D o0 ~ O ~ ~ O 00 •-+ 00 ~ l~ 01 O~ N 00 N ~O ~ M ~ 00 ~ 00 N d~ ~ O ~ U w OI N ~t ~O O N O N N N d' oo 01 ~o ~ ° N Q, o~ oo ~o M o ~ oo v~ M a ~ ~ ~ ~ ~ ~, ~ o o W w ~ ~ .-. .--{ N ~ ~ 6R v4 614 s4 614 6R ~ ~ ~ .--+ O O Q1 00 00 O O~ 01 00 Q ~ ~ N .~-i ~ ~--1 ~Y 1--. N 00 ~ ~ O O N M ~ ~-i VM' N ~ .~~ ~ N r- OI . 00 l [~ M N M dl ~ N N ~ ~ N M ~ ~„~ ¢ N d- ~D ~ ~r ~ ~ ~ N d 6R 6~ ~4 6F3 64 69 b Y b ~, ~ ~ o o o ~ ' ~ ~ > ~ ; Cd ~ 1 ~~ Cd ~ V v~~ R7 _y , r . Q Q~ ' i~ + ~ N ~ j ~ ~ ~ ~ ~ ~ ~ tdd ~ ~ cd" U .d i.; ~ a~ U b r.,' U .b y ~ y bq ~ • bq i~+ ~ i-+ ~ y ~ U L Y •--~ y ti ~ Cli . i (/~ C/] V7 ~ T M ,rj ~ ti ~ • ~ ~ ~ r O W "~ W ~ ~~ W ~ C7 cry a z N W J O W U Q' O E" ~ W -'~ a H 0 W Q a d •' W y F7 W U 00 V1 ~ O ~0 f+1 ~O M •--' O M et •-+ N O~ •--' ~0 M_ ~ O~ ~ ' ' N ~ M ~' d' h N O N ~0 00 h h ~ D, .--' •--~ M ~ N ch M 'cF ~) O N 00 'cf •--' [~ ~ •--' O ~0 M N M N h l ~ M Vl [~ c}' l ~ O O d' ~ ~ Oi ~0 O_ O Vl O ~ ~ h M O 00 h h M Oi N v1 •-+ O ~ 00 M M O ~O N O~ O h ~D V1 .--' Yl ~0 ~0 Q\ O ~ M N M (~ h v'f N ~0 t ~ N C M O ~ DD V^ ~ N 7 •--~ ~O .••~ V7 00 M ~ c+1 .-+ M ~ h 69 69 69 69 ~ ~ ~0 c+1 ~ ~t O~ h O _ v~ h ' ~ O C O DD M h ' [~ O h h h m N o0 [~ h ao O ~ ~ .•-~ 'ch ~O vl ~0 ~ O h •-+ N O N ~D hl ti0 ao N '/'~ O M h h M DD N N an c7 M ['~ ~0 v1 N On 00 O V7 •-+ O .--i ~!• ~O O~ D; Oi OD ~ ~' ~ DD ~ 7 O 'C 'd' O M h n O [~ N N M~ n h N V'~ M_ 00 O ~ N N O h N ~1 7 OHO ~ N ~ Oho N v~ cs3 s•5 v3 '/'~ M •--~ ~ •--' er h M h h h N ' •--' to O c*1 00 M •--' ' •--~ O c+7 t0 M~~ N h •-+ Vl O~ DD M h M 'ch ~0 0o O N ~~ N h O h h ~I h N~ N 00 ('n N 0~ 00 ~+ 7 •-+ ~O N •--~ O N N O~ 00 ~Y O h h O N h h ~D M [~ h 00 O n et O n v'i Vl T O E M N `cf N •-" O O [~ M V1 ~ •-+ 00 a\ h h [~ h N '!~ ~O cn ~ D\ O o0 V' 00 O h N ~ h 00 h N 00 •"~ •--' N ~0 ~ N •-+ cn v~ c'n O M N ~ N v~ ••-~ h 00 ~ ~ M •-•~ N ~ h h .--~ 69 69 69 69 M M 00 V1 00 h h 00 V') ' O h h h ' O 00 N 't7 DD D\ ' ' ~' 4') h r-' ~D V7 e}' N O N 00 M cn er N .-~ M N h o0 ao ~ D\ •-+ ~~ O O •--~ h h h O h [~ Yl N ~D ~' e?' e} O~ ~0 •-+ h O~ M M O ...~ ~O h 00 N ~O N O O~ N O O eF h O ~ 00 l~ O~ M •ch O ~ O~ Vl O tt ~O N t}' ~0 N ~ ~ a* •--~ N t+1 D\ h .-• M V7 N M ~D ~O ~D N V ~ O .--~ N V O~ N O V1 00 O N N •--' l ~ V ~ '7 h tt 7 .-i .•-i .--i ~ er ~0 'U^. 6R 69 b9 69 ['7 O~ 4\ b ~ h M [~ m \D ~ ' O V'1 [~ N O N •--~ ' Vl N d• h N '/1 [~ [~ ~ M M O M .-~ et h M ~ h \0 Vl V1 .-+ [~ 1/~ ~ t~ M h ~0 ~' [~ h V'f O~ .-. M .-• ~O O '[h ~ O '/1 ~ N h f~ 00 V7 00 ~ 00 N O~ h h N M [~ [~ D; 00 N M ~Y •-'~ M 00 00 •••~ h ~ N ~ ~ 000 7 N ~ M '-' N ~ ~ ~ ~ h ~ ~ O M OM N M et vj Q 69 69 69 d9 U p r~-i .N~ ~ M N h b N N O V'~ 01 h .--i ' 00 [~ [~ O\ ('n 00 ' ~--~ 00 w ~ cn o o\ h o, 'n v ~o o v~ v~ o v m .-~ o, v~ ~ o ~o h ~ M DD •--~ 00 •••i 00 (~ l~ ~ ~' ~ [~ V•1 O~ O 'cY h 00 ~ 00.0\ O N •--~ ~ O~ eh 0~ vi [~ ~ .-i 00 O~ M N 0~ N [~ M ~O Oi N l~ N 00 PO p0 D\ h 'ct oo h o0 00 h N O~ 00 ~0 h h ~0 h V' DD O~ ~ N V1 O H a N N et ~O cn N O oo N N v'~ O~ O M et D, O N N~ N N ~ Q .--~ M ~ M 'V' .--i ~' V1 lp ~ 69 b4 69 69 U U n o N ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ a a ~ o y~ ~ is ~ ~ ~ Y ~ •O •~ ~° m ~ °' UNoJ ~ C Q ~~' `~ ~ a ~ ~' 44N>11 '~~' .~ o ~ ~ ~ ~ on a~ ~+ ~ .Ga ~ ~ ~ ~ o ~ ~ ~ ~ ~ b .~ ~ ~ a~ d, .~ aoi o' oaF',~S '~3~rx ~ Gov aF.ao ~' c•~3vaat~°~ ~.m XC7 CCl oC7 •~U OU w a m N ~ W a~ J 7 ~ C ~ ~ W O 2 U U U rr~ ~""1 W w W ~i ~-d i-.~ ~ M N O~~ M O N O N M D\ M N N N O ~O tp ~O ~ 00 a1 ~ ~ ~ N ~ V' O .--i 0o vi a\ vi ~--~ M N M N r O O ~ D, O ~ ~ h M O ~ N ~ ~ ~ ~ [~ .~-. M ~ M oo M ~ t~+~ ~ N ~ ~y N M ~O 69 69 ff3 69 .~-~ h ~ ~ 00 .--i 00 \O [~ ' O l~ 00 00 ' O \O M ~O .-r ~ .--~ N~ V' O M .--~ O O N ~ O .-~ ~ l~ ~O O O ^~ l~ 00 00 ~O M CF t ~ [~ M .--~ v'~ l~ oo ~n O ~ ~ N M V'~ l~ .~. O O ~ ~ M M ~ ~ ONO O~ D1 00 O .-+ N a^ .--~ .-~ d' 00 '[f' ~-'~ v 69 69 69 ~ .~ ~O V7 t1' Q1 ~ .--~ •--' N ~' O ~ V') V1 O O O l~ ~O ~O N O~ (~ v'~ vl N O \O ~O 00 O ~t ~O ~ N O M l~ '~ ~ O ~I O ~' ~ ~ [~ 01 O Qn M ~ M O \O ~--~ 00 M M M Q1 ~ ~ 00 V') N ~O [~ 01 D; N M ~-'~ O N O Oi d~ O ~ ~O M O\ M p ~O d' N ~O oo .~-~ r O~ l ~D a0 DD ~ ~ O Oo .~ ~ ~O N ~ 'c~ O~ •--' O `cF ~O M ,--~ a\ N ~ ~ ~ V'1 N l~ 69 69 b9 ~ 00 ~O N ~--' N l~ v'~ 0o O V) r-+ ~O oo ir1 O .--~ M M O~ ~I l ~ 00 O~ l~ 00 I ~ '~7 V~ O~ e-. '~ .-r ~ ,~ ~ 01 ~O ~O O~ p ~1' O M O\ DO ~ N ~--~ 'a' ^-' M ~O V1 .--~ D\ '~ 01 a1 O ~ N l ~ M ~t V' O M ~O N ~D l~ '~-'~ ~"'' ~"~ v M [~ M M ~ ~'i et •-: 00 h N N v 69 69 69 69 i-. W ~ .--~ ~ .--~ N Q\ M ~O ~ O N ~O ~O O O N ~' ~ O l~ ~ ~ ~ ~ ~ ~ ~O a1 00 .~ ~O 00 N 00 ~O N ~ t~ ~A ~O M ~ t r O ~ U ~ h N O ~ N O ~ '-. 'n ~ n oo ~ 00 ~t l~ ~ D1 .~ 00 Q ~ U OI ~ ~ '""' "" ~ N 00 ~ M N_ 00 N h N M 00 O _M N 'n l~ 7 'o w O 69 b4 69 ~ W U >G Q ~. 01 N l~ M l~ M .--~ N O O l~ O~ ~O [~ N ~ ~ ~ ~ ~ ~ U. ~ ~ a, .-~ 00 N t~ N N M d' O ~ ~O O ~--~ ~--~ 00 ~ M ~O 00 '~ O\ V7 l ~ ~ 00 lO l~ 01 O~ 00 M O l~ 00 ~O ~ "~' pl ~O o0 00 N M O O O~ M ~O [~ O~ O O ~ [~ ~--~ ~ N ~ N Q '~ N .M-+ N 00 M O M '/1 00 ~ V7 ~ .--i l0 [~ M ~ O ~ V 64 Cf? 69 6A Q .~ ti a> ~ y ~ aai ~ Ci' d ~ aXi a a. ~, ~ 'y y ~ ~ a~'i a~'i C COO ~ ~ c0 ~' bA ~ ~ C G. ~" y U ld p, y y O ~ N 'd ~O ~. O ~"' ~.' ~ ~ y. O ~ y O y ..-, .'. ~ O .., N [O v1~i > O ,}~ry ~ ~ O ~ iv~i• ~ .. ~ ~ b0 ~y .y 'Y ~ ~ 1-~ ~ .wry > L1 y i-I .'~ [/7 > CC3 ~ ~ Y i., ~N _ lllrrr ~ y ~ _ _ a~i ~ a~'i E"' ~ ~ a~'i C Y ~ ~ y v `~ H E ' a, ~~ ~ C ~ H H .~ ~ y F ~ N .,~". y N N ,C ~' o ~ ~ o H w ~ ~ ~ C7 H ~ c ~ 'cc ~ ~ o a ~ C7 Gr1 aai ~ ~ ~ ~ C7 H ,~ C7 CGl z ~ ~ ~ z M W J W 2 U Q F~ H d C7 ~ o U ~ a ~ Q U w ,.~ ~ O U Q w W ~ > ~ Q a '~r ~ ~ a ~ ~ d -- a ~ ~h ~+ O 't7' ~ ~ O M ~ v~ N D\ M '--~ M d' ~ ~ ' O~ N ~ a\ M 'Ch N M t~ ~ ~ O O N ~--~ ~t M o~0 N .-. ~ ~ ~n ~ M ~ a\ N N 'ct' ~/'~ ~ ~ 3 64 ~--' M ~ V'1 b9 ~" ..v-~ ~ ~ ~ N ~h M ~ .--~ N ~O N cad ~ pI O N o0 l~ N 00 O O D; .-+ .--~ O~ O ~O ~ .--+ M 00 00 N M O O~ V7 o0 ~/'~ l~ [~ ~--~ N O~ ~ ~ j N N O r-+ .--~ V' •--~ N ~ M N o0 t7 N ~p ,~ N O N b9 ~ ~ }, ~ M ,--~ _ (~ 00 _ 01 ~O N V~ N N M t~ , ~ O~ _ N 00 VM'' ~n h' t ~ ~" ~ ~ ~ O O N vi O \C vi ~' •-+ vi O M N O\ N O~ ~ M ~O ~--~ \O .-+ O M M oo N N O N •-+ h N b ~ cd ~ ~ b9 ~--' N 'd~ vi t~ b9 l~ ~ N M O M O .--~ N N 00 .-~ ' 00 00 O\ 00 V7 O\ l~ .--~ ~ 0 M Q OI O O ~D 00 ~n l~ o1 ~t O N l~ v~ 00 O~ [~ ~ M M ~ 'n .~ N N O ~t oo .--+ N N t~ v1 ~ ~ ,~,, 69 b9 ~ o ° ~ ~ ~ ° ~ ~ ~ ~ ~ O ~D O~ O N V' N O ~ v1 .--~ tI~ 00 ~ M N 00 l ~ .-. 60 N ~ ~ ~ U O N M 'ch 00 ~ '~ lp O M Q~ A M O M d' N M 00 C1 00 N ~ .+ a ~ 6g ~ M ~ ~ ~ N N ~ oo ~ ' o0 ~ 0o 0~0 O~ ~' oo O M OHO ,--~ ~ ,--~ N ~ ~ ~ ~ , M O O N N ~/'1 M M M ~ M \O 01 ~ D\ N 00 O o0 N ~ l~ O~ N N ~ N ~--~ V'1 N ~--~ O N , N ~ O ~ ~ ~ ~r ~n ~o ~ ~ 3 3 0 a~ o ~~ U ~° ~ • ~ ~ a~i ~ _ `~ A ~ ~ y, ~ ~ ~ a 7ti U •~ U ~ L: ~ ~ ~~" ~ O ~ ~ ~, U e~ N O ~ O O v7 ~ O ~ . U ~ ~ .. Q y U ~ .~ ¢' O fr" .., ~ y ' O O ~ N O ~ ~ U ~ t'., U U U p U ~ N " U ~ y ~ ~ ~ ~ ~ ~ ~ O dq ~ N y.r O ~'' ~ . ~ y bA N O ~ ~ O .b O ~ ~ .~ _~_ ~ c~ i. U O "' cd y ~ ~ ~ ~+' ~ *~ O ~ ~ ~ ~ .~ 4r 'O ,~ ~ H ~ a> o c, a~ v~ . ~ O o ~ v~ H ai p ui o c~ C7 a, E-' a ~ ~ ~ U v~ r~ o ~ z ~ o z y U N N O~ .-+ O N O D\ O M D1 ~ r• ~ 00 l ~ ~ 0 0 ~ O N O N N DD a\ N N ~ I ~ ~ ,--. M M N N O N N ' d 'd' ~ N W ~ s9 J W 01 ~ ~ N M M ~' ~ O~ _ ~t N [ ~ ~t t~ t ~ '--~ 00 00 .-~ M O ~ ~ O N ~h V7 'ct O ~n O~ M M O N _ O ~t ~ ~--' 69 69 O O O O ~O O~ ' ' ~ .~ O~ O l~ ~--~ l~ ~O ~ M 00 M ~ ~ ~ O ~O .-~ t~ M O~ V7 (~ O ~ ~ N N M ~ + ~ N ~ M M ~--~ ~" 69 69 O~ 00 [~ V7 M •--~ ' ' O~ ~ O ~ v~ ~ ~' `O O 01 ~ ~ M a1 ~ O ~ N ,--. N ~ ~ o O v~ M M M N M 69 69 O~ O ~ N ~n N ' ' ~ O a0 00 N a\ D1 O V7 M 00 l ~ M \D ~ O O 00 00 .-+ O~ V7 ~O O ~ .-~ ~O ~i' ao .--~ c}' N l~ l~ M oo N ~ M M ^' 69 69 W ~n ~O ~ V') O o0 ' ' M ' ~ ~ ~ ~ ~ ~ ~ ~ ~ 00 ~--~ rr N .-r N ~ O N ~ d ~ w ~,; ~., ,~ r. `-' Q V~' N OHO ~ N 000 ~ ~ N 1 ~ ~ ~ Q O ~ a 0 w pa N \ n w ~ of ~ ~ ~ ° ~ ~ (. z ~ ' C/1 W ~ N ~--~ O~ O O ~ ~/ ~--~ l N M r: .~ N O U H U z~ Efi W ~ U U~ ~ ¢ ~ ~ N `~ N 1 N ~ o 0 0 1 0o o o . -~ `~ ~ ~ O ° °i ~ , a OI o N o, ~ w..r ~ A N N ~ 00 ~--~ O ~ ~ M ~ N N ~ w ~ v ~ l~ d' ~--+ o~ ~ a0 ' ' DD ~--~ M ~ ~ 00 M \O O N 00 O V7 [~ [~ O I O O ~ 0 ~ ~ N ~ ~ ~ 0 0 .--~ 00 O N ~--~ d' 64 N M 69 N ~ H D\ h ~ ~ O O ~--~ I ~ N N O N O N M t~ '~ N [~ O~ -~ N ~t 69 .-. r-+ 69 'C3 ~ ~ ~ 'CS ~ b .~ ~ ~ w ~ y ~ ~ ~ w ~ rn a~ o ~ ~ id ~ ~ U ~ ~ ~' •o ~ a 3 ~, ~ ~ a ~ ~ ~ ~ Y ~ y ~ N p ~ ~ U U z N W J W U rra~ 1~ F a W w a 41 V' 00 O ~O l~ D\ N O~ N l~ vi o0 00 N N O M N ~O O M '~1 O O O vl M M M O O~ ~ vl O l~ ~} N l~ M M O vl C l~ V M D1 ~ ~ O O O ~ ~ ~D O aw -~ N ~ O ~O [~ N ~O vi M N N vi l~ M t~ N oo ~ M M [~ ~O a c O) M d' O N ~O Q\ N O W c+i N v} O 01 N l~ I~ N O vj v1 Q\ 7 M O O~ O~ O l~ 00 i~ 00 ~D t~ O~ 'n d' M O oo N M O~ ~O vi (~ O 'n N N O N V' a\ N o0 t~ 'n N ~ N --+ ,--~ ~O N 7 ~O 7 N ~n N o0 0o O~ oo a\ ~ ~O 01 '.. +!j 00 b9 (y9 'n W N O ,-. 00 ~t ~ O O~ 00 00 O~ 00 00 ~O l~ V1 Vl 00 ~O M ~O ~ ~ O ~ M N N vl O\ O ~ 00 O\ N V'7 N ~Y D\ M ~D l~ ~O M M ~O Vr ~i' d' O ~O ~ .r 00 d> .-~ (~ M ~ W O 00 ~O 00 .--~ .-• M ~ [~ O ~D ~ .-' h '!1 ~O M M 00 0 O ~O 'n ~O M t~ O ~ ~--' N oo M M .-' ~O vi N N N ~O oo ~ 'n vj O ~t O O O~ ~--~ N l~ [~ D\ O O .-. vl O ~ ~ a\ M Q\ ~ 00 N D\ ~ 00 N ~ N N N N 00 Vl N d' V' ~ ~--~ '/1 M N [~ ~'Y o0 V N ct \O ~O ~ (~ O .-. V'i .-. O F/i yq M N O O~ M ~--~ 'n M ' N O N l~ ~ 00 ~ n O O o0 Oro ~ ~ _ ~--~ O O O N oo N \O N d- a\ [~ O Vl O M oo ~ ~ O ~ ~ 00 W ,-. ~I N O (~ r T ~--' V7 ~ OO M N O~ ~D 00 \p 'ct O ~ 00 O --~ M O [~ O O o O 'd' O~ l~ N Q\ O ~--~ N V' vl N O M n N N N M rY M M M ~O I~ ~O ~ O ~ l~ O ~O O M 0\ M ~ .r ~ D\ M O O~ ~O o0 d' V' N ~O M U V ,_, N N ~O 'n N 'ch O~ ~O M .-. N c+~ N oo ~O .--~ M N O~ ~O O O~ .-+ <t ~ ~O O .-~ vl M ~--' ~ N --' ,--~ --~ 69 ~..i 69 O l~ vl W 00 00 7 00 ~h l~ ' l~ ~D O rV ~_ Q~ M .-. N vl ~ O G1 Vr l~ 'cY N O~ ~ ~ M a0 W h ~ O ~ ~ M M '/1 O l~ W O ~ 01 l~ h ~ vl ~ Q^ 00 l~ V W v7 N ~O l~ ~--' N Q\ O ~ ~ ~--~ ~D oo M rV o0 O~ f~ O c O D\ N O 'cY ~ h O~ ~_ N a\ D\ ~ 7 ~--~ Vl M O ~O V~ ~O O ~--~ 00 N '~ ~O ~ O [~ N Q\ 'n ~ .-. ~ vl aD ~ ~--~ v'i N N ~ M 'n l~ t~ l~ ~O 'n 'n N O~ N 'n ~D ~t N M vi 'n N M N N M M E v'~ oo M N N G1 t~ O ~--~ o0 00 ~ 'n ~ ^ ~ 00 M M ^" 69 ~ 69 00 l~ M O ' vl M M_ ~O ' 00 ~ O o0 M O M O O\ M Q~ O_ O ~ ~ Vl 0o V' ~-+ O 'ch O oo N N ~' 'n 4\ [~ W O o0 (~ ~ .~ ~ N ~ 7 ~. O ow h r O~ ~O 'ct V ~--' O o0 vi t~ N Q\ M N <F ~ m O 7 \O '. M c O) M \O l~ M M D\ ~ M ~ 'h 00 ~ ~ W O\ N Vl [~ ~D ~ 7 ~O o0 N O 7 O~ l~ V' V' O\ f~ 'n W N N ~--~ ~ 00 ~ ~--~ ~ Vl N N M [~ ~O M 7 N N 'n ~t M ~ O N an ~ M M M N N N M m v~ 'n M ~ '/l l~ .--~ M l~ 69 fA M ~O M O ' [~ d' ~O l~ ~ ' M M_ O M vl t~ vl N Q\ ~ ~--~ ~ ~ N o0 ~O D\ .--• ~ ~ ~ ~ ~ v'l ~O ~O [~ O N '~ M .-. Vl O C' ~O o a^ an ~ V '~'~ vl .~ ~ ~ rY O an N O~ ~O N o0 On 'rl Q\ 00 00 M o M ~p vt N l~ ~D M M oo O N l~ a\ M O ~ D; O ~ 00 -~ V N ~ a\ M O M l~ ~O M Vl O OO v'l 00 M N 00 V 'U' d' M l~ l~ O 00 lp l~ 00 Q~ z N o0 h M M ~ v-~ N d~ d' M~ ~ N [~ 7 ~ 69 .--. 69 O ~O ~O O O ' [~ 01 M W M ' O N M 00 M ~O lO M 00 [~ Vl [~ ~ O O h V ~' O Vl r O N Q\ v1 N N O vl ~O ~O N N ~O O~ ~ O~ ~ d- O O O o U ~ ~^ ~ N N <Y ~ [~ ~ M M ~ D\ M M ~--' N O~ ~ M .-.~ '~ O r M o W d O N W N ~ N o0 7 00 ~D 7 Vl Q; D\ M v1 00 l~ M l~ N o0 0o N O~ ~ W O O M o0 N 'd' O o0 ~O ~ ~f ~ M N O N ~' 01 M l~ M vl M 'n N M ~" ~ N 'n ~O M M ~ ~--~ M ~--~ N~ M O O~ ,--~ N on M O N 'n ~ D1 .~-. 6~9 ~ ,--~ M V ,--i v Vj v Vj ~p ~ N U ~ ~ ~ W N M N ~O ' ' N oo ~O '~ d' -~ rn M M~ n [~ ~ N N O N O ~ [T-i a N M ~ v1 O O h ~--~ 00 ~ M ~--~ ~ ~ d' O M ~ vl a1 ~ t~ ~ O O~ O l~ l~ N ri .-~ O N O V o0 00 l~ ~--~ M M O ~O O vl 7 w ~ O N M N N M M ~ ~ d' v1 ~O ~O O 00 ~--~ ~O ~i' .fir O~ 7 ~h O ~ f"' a O O ~ O V1 OO O\ CY d' O O~ M M 00 00 ~O O N 'cY 00 (~ N •--~ '~1 M N --+ ~O N a\ d' N M ~ ~--~ ~ M ~ ~ O~ ~D d' vi .-. N --~ ~ N ~ L.,) 69 ~ 69 a w N O\ 00 M ' ' '~1 00 V'1 Q1 ' vl d' M D\ N '/1 vl 00 O N N '/) ~ O V' ~ 00 [~ ~--~ M l~ d' t~ N N ~O M o0 t~ ~O O ~O N 'n .-, v'> --+ O ~ ~/'~ u„ O [~ ~ O 00 0\ '--' ~O .-. N ~ ~ O M ~ M l~ ~t [~ [~ M oo O vl N o OI N 'ct V' N ~O ~O h W O~ O v1 O~ ~--~ ~ N O N ~O M N N O D1 M ~ A O ~ 'c!' ~ M ~ M ~ .--~ N M O~ ~ 00 'd' M M ~ Oi M ~ ~' Vl <f ~ ~ O N ~~ N N N '/^ 00 ~ M N d' M --~ O ~ i~ ~ vl ~ O M 'n N vi '"' ~-' 69 69 _O o0 M l~ ' ' 00 ~-.• ~O 'h ' 00 ~O 7 00 .-. .--~ lp Vl N l~ ~ ~ W 00 ~ v1 (~ 00 N N M O~ 00 Oi ~--~ A N O N N T ~ v'l O O [~ l~ N ~ oo Vl O ~t 'ct ~O ~ ~ N an D\ ~ M O N cn vl O O M ~O Vl N N c ~I V' N O h V N oo M vl Oi a\ p N O ~ M O O n vl M vi N G1 O\ 00 M O O O M V1 ~--' ~ N M l~ Q\ d' ~--~ d' l0 ~ cp (~ W 00 (~ M .-~ l~ v~ M N ~--~ ~--~ N o0 \O N N o0 N ~--~ N O t~ v ~ ~ r ~ .--i M 4'1 N ~--~ ~D .-.. ~--' 69 .--i 69 Vl N 3. rn :~ /~-~~. (], ~' N ~ ^ id aN+ S1 N ~"' LL N V cA. N G ~ ~ ~ O O G ~ y y N ~ ~ ~ N ~ 4.a N ~ ~ N > v, s>i °~ ~n ~ ~ ~ w o ~ `v o fin' '°~' c ~ •¢' a~ `~ +a ~a~i ~ '~- ~ ° `~ ~ ~ '~ ~ .~ ~+ ~ ;: ~ °? a m ~ A. ~ ~ C7 ate, F ` i ~ ~ a S ~ N ~ ~ ~ .~ .~ N y H .a~' U .~ i : C7 .1 .~ Gc. ~ fs: ~ ~ U U C] u" X .~ Fes- Ems- O a~ ~ x w w o z ca VILLAGE OF TEQUESTA, FLORIDA SCHEDULE 6 TAX REVENUES BY SOURCE, GOVERNMENTAL FUNDS LAST SIX 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 2008 5,661,200 1,063,399 462,296 7,186,896 Change: 2003-2008 2,268,577 (30,478) 111,873 2,349,973 2003-2008 66.87% -2.79% 31.93% 48.58% This report is not required. However, the Village of Tequesta started presenting this data from 2003. -77- VILLAGE OF TEQUESTA, FLORIDA REVENUES FROM SALES & USE TAXES BY CATEGORY Utility taxes: Electric Water Propane Communications services tax Gas taxes: Local gas tax 6 cents Local gas tax 1-5 cent LAST SIX FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) 2003 2004 2005 2006 2007 2008 $ 372,565 $ 350,854 $ 363,807 $ 363,620 $ 392,158 $ 397,931 158,738 177,954 156,890 169,302 100,360 128,010 23,904 24,329 30,587 37,557 21,402 17,420 351,680 340,996 335,593 329,248 343,620 347,418 127,087 133,272 135,948 129,668 122,271 117,645 59,903 62,376 62,000 58,364 56,389 54,975 $1,093,877 $1,089,781 $1,084,827 $1,087,759 $1,036,200 $1,063,399 Note: The Village began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003. -78- ~ ~ ~ ~ ~ ~ o 0 0 0 0 0 0 0 0 0 ~ ~ ~ +-' ~I vUi ~ U U ~ O .--y o0 V7 d- d' O ~ '--+ N ~ ~ ~ ~ ' 00 00 l~ l~ l~ [~ [~ l~ l~ [~ ~' a o e F a W W 0 a d Qi U w W H H ra M l~ V'~ ~O O d' ct' a\ N ~ i-+ M ~ ~--~ tt M V' N d' d' 00 ~ 4r N ~ V1 O ~ D1 M ~/'~ ~ N c0 + ~+ ti O O~ r+ M 00 M Q~ M 00 O\ M ~~C V~ ~ •--+ .--~ ~ O~ M M ~O N •~ ~ cd cd ~ ~ d' M V1 N M M ~ 00 t/'1 ,..~ ~ ~ ~ ~n o 0 0 0 ~ .~ ~ ~ k a~ 0 0 0 0 00 00 0o co ~ t~ . s" ~ ~ M M M M ~ 01 Q~ O~ O\ \D ~ ~ ~ ~ . . 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'" M oo ~--~ [ ~ M ~G O ~n ~ ~ M M M N ~ ~ W ~ (~ G-+ U ~ r-+ .--, N N N N N r. .-, Z 69 ~ O ~ z +~ ~ 4r o o ~ a ~ o ~ o ~ a ~ o ~ a ~ o ~ 0 ~ 0 ~ 0 ~ w o ~ ~ p. o ~ oo ~r ~ o 0o c~ N ~n O Q y M O t~ ~n ~ ~ ~ N .-~ ~ F-+ ~ +'! M 00 M ' ~O ~ N O~ v~ V7 ~ ~O i--. . ~ N ~ V 1 ~O M 00 .-~ 00 [ tI~ ~ r-+ ^~ Q cY ^ l ~ d~ ~O •--~ O O 00 N d~ ~ ~ ~ N N m ~ N o rn f ~ M ~ Z o O o o ~ O Q ~ ~ M O ~O M O ~--~ ~D ~ M [~ ~ ~ p ~ ~ 0o M M M N N ~--~ O ~ d' oo N M ~O •--~ ~ O ~ O . ~ N [~ M .~ ,~ t~ O d' 00 N O~ y ~ ~ 00 l~ O ~ O ~ ~O 00 ~ ~O l ~ ~ ~ ~ b ~ c ~d ... V'~ l~ 00 •-~ '-+ ~ '-. ~ V~ N N l~ ~ O~ 00 [~ N 00 Qi . ~O ~ w ~ ~--~ ~ ~--~ N N N M d' cn Q Q 6i4 ~ [~ \p Vl 01 V7 M M V1 .--~ ~ ' v~ -~ r.., O~ N ,--~ ~ ~O M t~ h '-+ 00 00 00 \O ct ~D t! ~ O O d ~ U Q ti ~ ~ ~ o0 N - V 1 d' V'1 ' t~ ~ M ~ N ~r i + ~ d N oo d ~ oo ~ N ~ ~'' ~ Q~ O~ 00 M M M N N ~--~ ~--+ W Q 64 ,--~ .-~ .--a .-r ,--~ .-+ .--+ F'' h ~ N O ~ ~ ~ N M --i ~ V] o o v i . a ~ ~ M ~O O ~--~ M O N O ~O l~ a~ a~ o~ r, c, o 00 o rn ~ ~ ~ ~ O o N ~ y~ N ~ ~ ~ N ~ ~ M vii cd RS 0 00 .--~ ~ ~ M N d' C~ ~D "'+ ' ~fi `a' ~ V ) ~ ~ 00 O~ O O~ 64 '-"' O N M l~ ~ m o0 ~D N N ' o0 N t~ O N M '~t ~ O 'd O~ ~ _ N h ~ ~ ~ N ~ N v~ v ~ h O W W o ~ .~ N ~ ~ ti ~ w O~ O .--~ N M d' ~ ~ ~ c0 Q1 0 0 0 0 0 0 0 0 0 ~ ON N ON N N N ON N N N O 0 Q~ N N O b N W O 0 .~ .~ a3 U ~i .b .~ O O N N H i .~ O N ~ ~ A dq bD ~w '~ ~ ~ ~U, •--~ 4-i O ~ i. ~ N ~" •N ~, s" ~ ~ ~ Q ~, U ~, a~ U ~ o ~ a .b ~ U waa~.~ h N O O O .'~' ti U d U ~ ~ d ~ ~ ~ ~ ~ O ti O ~ o ~ U W `o~ ~ ~ ~ ~ ? d ~ U d y ~~ v~ 00 VILLAGE OF TEQUESTA, FLORIDA COMPUTATION OF LEGAL DEBT MARGIN SEPTEMBER 30, 2008 Total assessed value Legal debt margin: Debt limitation - 10% of total assessed value Total bonded debt outstanding (a) $ - Less amount available in debt service fund (b) 228,500 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 9/30/2008 $ 931,307,717 $ 93,130,772 $ 93,130,772 -86- VILLAGE OF TEQUESTA, FLORIDA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT SEPTEMBER 30, 2008 Estimate Net Estimate Share of Bonded Percentage Direct and Debt Applicable to Overlapping Governmental Unit Outstanding Tequesta (a) Debt Debt repaid with property taxes Palm Beach County $ 290,410,000 0.58% $ 1,684,378 P.B.C. School Board 35,805,000 0.58% 207,669 Subtotal, overlapping debt 1,892,047 Village of Tequesta direct debt 4,143,306 Total direct and overlapping debt $ 6,035,353 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. -87- 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 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 2008 515,700 275,836 239,864 259,846 15,990 0.87 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. -88- 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 1999 5122 (5) (5) (5) 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% 2008 5898 326,224,278 55,311 47.5 7.3% 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 (5) Unavailable -89- VILLAGE OF TEQUESTA, FLORIDA FULL-TIME EQUIVALENT VILLAGE GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM LAST SEVEN FISCAL YEARS Full-time Equivalent Employees as of September 30 Function/Program 2002 2003 2004 2005 2006 2007 2008 Governmental activities: General government Public safety Transportation Leisure services Total governmental activities Business-type activities: Water Stormwater Community development (a) Total business-type activities Total primary government 8.0 8.5 12.0 11.5 10.5 9.5 15.0 45.5 51.0 45.0 45.0 46.0 51.0 50.0 2.0 2.5 - - 3.0 4.0 4.0 1.5 2.5 2.0 2.0 3.0 3.0 3.0 57.0 64.5 59.0 58.5 62.5 67.5 72.0 14.0 12.5 14.5 14.0 15.0 15.5 15.0 0.5 - - - 1.0 1.0 1.0 3.5 3.0 2.5 - - - - 18.0 15.5 17.0 14.0 16.0 16.5 16.0 75.0 80.0 76.0 72.5 78.5 84.0 88.0 Note: The Village was able to access this data from 2002. Source: Village of Tequesta Human Resource Dept 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. Planning and building activities are currently accounted for in the General Fund, and code enforcement as part of the function of Public Safety. -90- VILLAGE OF TEQUESTA, FLORIDA OPERATING INDICATORS BY FUNCTION/PROGRAM CURRENT FISCAL YEAR 2008 Governmental activities: General government Registered voters 4,439 Public safety: Police deparhnent 1 No. of Patrol Units 7 No. of full-time certified police officers 17 No. of calls received 3,535 No. of arrests 224 No. of parking violations 171 No. of incident numbers issued 965 Fire department: No. of full-time certified firefighters 20 No. of Ambulances 2 No. of Pumpers 2 No. of emergency responses 1,143 No. of transports 621 No. of fires extinguished 522 No. of inspections 435 Building, zoning: No. of building pernuts issued 906 No. of building inspections conducted 2,039 Transportation: Miles of street lane miles 43 No. of bridges 1 No. of fire hydrants 430 Leisure services: No. of parks 3 No. of park acreage 53 No. of playgrounds 2 No. of Baseball /Softball Diamonds 3 No. of Skate-Parks 1 No. of Spring Classes 8 No. of Summer Classes 4 No. of Movies 4 Business-type activities: Water: No. of customers 4,968 Average daily consumption 2.351 mg Miles of water mains 72 Storage Capacity (thousand of gallons) 3,250 -91- VILLAGE OF TEQUESTA, FLORIDA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM CURRENT FISCAL YEAR 2008 Function/program: Governmental activities: General government: Municipal center 1 Public safety Police: No. of stations 1 No. of patrol units 7 Fire: No. of stations 1 No. of ambulances 2 No. of pumpers 2 Transportation: Miles of street lane miles 43 Leisure services No. of parks 3 No. of park acreage 53 No. of playgrounds 2 No. of baseball/softball diamonds 3 No. of skate-parks 1 Business-type activities: Water: Miles of water mains 72 No. of fire hydrants 430 Storage capacity (thousands of gallons) 3,250 -92- Page Intentionally Left Blank ~~~:L~~~~~ S~TI(~l~T ^ 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, 2008, which collectively comprise the Village's basic financial statements, and have issued our report thereon dated February 27, 2009. 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 fmancial 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 sign cant 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 fmancial 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 fmancial statements will not be prevented or detected by the Village's internal control. Our consideration of internal control over fmancial reporting was for the limited purpose described in the fast 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 fmancial reporting that we consider to be material weaknesses, as defined above. -93- ~~~ Rachlin LLP ^ 777 South Flagler Drive ^ Suite 150 ^ West Palm Beach, Florida 33401 ^ Phone 561.833.0002 ^ Fax 561.833.3235 ^ 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 N 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 matters that are required to be reported under Government Auditing Standards. We noted certain other matters that we reported to management of the Village in the accompanying schedule of findings and responses. The Village's responses to the findings identified in our audit are described in the accompanying schedule of findings and responses. We did not audit the Village's responses, and accordingly, we express no opinion on them. This report is intended solely for the information and use of the Village Council, management, and regulatory bodies and is not intended to be and should not be used by anyone other than these specified parties. ~ ~~~ West Palm Beach, Florida February 27, 2009 -94- Rachlin accountants • advisors ^ 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, 2008, and have issued our report thereon dated February 27, 2009, 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. We have issued our Report on Internal Control over Financial Reporting and on Compliance and Other Matters. Disclosures in that report, which is dated February 27, 2009, 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. This report includes the following, which is not included in the aforementioned auditor's reports or schedule. - 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, this finding and recommendation is incorporated in the accompanying schedule of findings and responses. - 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 fmancial 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 ^ 777 South Flagler Drive ^ Suite 150 ^ West Palm Beach, Florida 33401 ^ Phone 561.833.0002 ^ Fax 561.833.3235 ^ www.raChlln.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 B 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, our finding and recommendation is disclosed in the accompanying schedule of findings and responses. - 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, 2008, 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, 2008. 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. Pursuant to Chapter 119, Florida Statutes, this management letter is public record and its distribution is not limited. Accounting standards generally accepted in the United Sates require us to indicate that this 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. West Palm Beach, Florida February 27, 2009 -96- Rachlin accountants • advisors VILLAGE OF TEQUESTA, FLORIDA SCHEDULE OF FINDINGS AND RESPONSES FISCAL YEAR ENDED SEPTEMBER 30, 2008 FINANCIAL STATEMENT FINDINGS Other Matters 08-01 Segregation of Duties Criteria An effective system of internal controls provide for the distribution of duties among available personnel, so that no one employee controls all phases of a transaction without some independent verification by another employee. Condition During the course of our audit, we noted that the limited staffing poses a potential risk for an insufficient segregation of duties in the utility cash receipts transaction cycle. Cause The Village has not adequately segregated duties among available personnel. Effect A lack of segregation of duties can expose the Village to fraudulent activities. Recommendation Although we are aware that resources should not in all instances be dedicated to satisfy internal control dictates, to the extent possible, duties should be segregated among available personnel to serve as a check and balance. l~iews of Responsible Officials and Planned Corrective Actions The Village is very serious about internal controls and segregation of duties and agrees that in an ideal internal control environment, there are certain accounting functions that should not be performed by the same person. However, due to the current economic outlook, the size of the Village of Tequesta and the current constraints on hiring and budget, it is not feasible to hire additional staff in order to ensure that the various functions of the utility cash receipts transaction cycle are fully and clearly separated. However, the Village has implemented a number of controls in this area to mitigate the potential risk. • During a billing cycle, the customer service representative prepares the deposit. • The Customer service supervisor validates the deposit in the system, verifying amounts. • An accountant, separate from the water utility, is made aware of the completion of the deposits for the day and appends the information from the cash receipts module into the general ledger, verifying the amount recorded in the general ledger agrees with the amount of the daily deposit per cash receipts. -97- VILLAGE OF TEQUESTA, FLORIDA SCHEDULE OF FINDINGS AND RESPONSES (Continued) Views of Responsible Officials and Planned Corrective Actions (Continued) An accounts receivable aging report is generated after each billing and reviewed by an accountant, separate from the water utility, who is responsible for reconciling accounts receivable and investigating any discrepancies. Also, with each billing an accounts receivable aging report is generated that is reviewed by an accountant, separate from the water utility, who is responsible for reconciling accounts receivable and investigating any discrepancies. An accountant, separate from the water utility reconciles the bank statement and verifies the deposit with the bank. The Village will be implementing on line payments in the year ending 9/30/2009, which is expected to add additional segregation of duties and will continue to look for additional opportunities to lower any risk in this area. 08-02 Retention of Records Criteria The maintenance of adequate supporting documentation ensures that transactions posted to the general ledger can be properly validated. Condition During audit procedures performed for utility billing and receipts, we noted that the Village did not maintain the utility stubs as evidence of the utility bill sent to and the payments remitted by their utility customers. Cause The Village did not believe it was necessary to maintain the stubs as part of the documentation to substantiate transactions entered into the general ledger system. Effect A lack of adequate supporting documentation could expose the Village to fraudulent activities. Recommendation We recommend that policies and procedures be established to ensure that adequate supporting documentation, including the utility stubs, is maintained for all utility transactions. -98- VILLAGE OF TEQUESTA, FLORIDA SCHEDULE OF FINDINGS AND RESPONSES (Conrinued) Views of Responsible Officials and Planned Corrective Actions The Village agrees that it is important to maintain documentation to substantiate transactions entered into the general ledger and currently maintains the following records as documentation: • Billing register (two years of monthly registers are kept in the file room then moved to storage at the water plant). o This is a monthly report that is automatically generated at each billing. o It is a computer generated report that prints, in report format all the bills that were generated during that billing cycle and includes all the information that is printed on each bill. • The final summary bill (including the stub portion) for each billing. o Includes the summary of the total billing by each billing code. • The Village has access to a complete history of each account showing all billings, payments and deposits as well as any notes that may be pertinent to the account. This information is part of the Utility Billing software module and the data is held on the server and available at all times. • In addition an accountant, separate from the water utility prints a trial balance prior to billing and prepares a spreadsheet. After billing, the accountant receives the summary billing card showing the total of all billing codes, enters the amounts in the spreadsheet, compares the final amounts to the trial balance printed after billing, verifies the amounts and investigates any discrepancies. • Also, with each billing an accounts receivable aging report is generated that is reviewed by an accountant separate from the water utility, who is responsible for reconciling accounts receivable and investigating any discrepancies. The Village considered maintaining the utility stubs as evidence, however, as customers do not always return their stubs with payments, (i.e., ACH payments, electronic bill payment, checks with account numbers and no stub, eta) this would be an incomplete record. Also, as the billing register contains all the information on the bills, is completed at the same time and by the same software program (Utility Billing) and is evidence of the bills printed, the Village determined that keeping the billing registers would document a more complete record. -99- A strong community with solid financial controls. This CAFR report is the annual "report card" of the financial health of Tequesta. And, again, as has been the story fur many years, Tec{uesta, Florida is in excellent financial health. The reasons are many: The organization of five elected Council members offers the village careful decision making. An appointed Village Manager leads the administra- tive staff, all the while keeping a finger on the ~~illage budget. The water department maintains the reverse-osmosis water plant, while public works keeps the village clean and beautiful. Our community development and cede enforcement deparuilents spend most of their time keeping an eye on our commercial and business neighbors to make sure our shopping centers look uniform and welcoming. And, of course, our police and fire rescue do a wonderful job of keeping all of us in Tequesta safe, secure and protected. All of these departments work under strict budgets dictated by Village Council and mandated by the residents of Tequesta.