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HomeMy WebLinkAboutHandouts_Regular_6/13/2002 (2)Conriprehensive.Annual Fmaril- eil lReport vil flage of Tequesta, Florida Fiskcal Year Ended September 30, -2001 No Text VILLAGE OF TEQUESTA, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 2001 No Text ., VILLAGE OF TEQUESTA, FLORIDA TABLE OF CONTENTS I. INTRODUCTORY SECTION PAGE Letter of Transmittal i Certificate of Achievement for Excellence in Financial Reporting ix Organization Chart x List of Principal Officials xi II. FINANCIAL SECTION REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS 1-2 GENERAL PURPOSE FINANCIAL STATEMENTS (Combined Statements - Overview) Combined Balance Sheet - All Fund Types and Account Groups 3-5 �- Combined Statement of Revenues, Expenditures and Changes in Fund Balances - 6 All Governmental Fund Types and Expendable Trust Fund Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Governmental Fund Types 7-8 Combined Statement of Revenues, Expenses and Changes in Retained Earnings - Enterprise Funds 9 .- Combined Statement of Cash Flows - Proprietary Fund Type 10 Combined Statement of Changes in Plan Net Asset - Pension Trust Funds 11 Notes to General Purpose Financial Statements 12-35 REQUIRED SUPPLEMENTAL INFORMATION Schedule of Contributions from the Employer and Other Contributing Entities 36 Notes to the Required Supplemental Information 37 SUPPLEMENTAL INFORMATION General Fund: Schedule of Revenues - Budget and Actual 38-39 Schedule of Departmental Expenditures - Budget and Actual 40-44 Capital Projects Funds: ' Combining Balance Sheet 45 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 46 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - ' Budget and Actual 47 VILLAGE OF TEQUESTA, FLORIDA TABLE OF CONTENTS (Continued) II. FINANCIAL SECTION (Continued) SUPPLEMENTAL INFORMATION (Continued) Proprietary Funds (Enterprise Funds): Combining Balance Sheet 48 Combining Statements of Revenues, Expenses and Changes in Retained Earnings 49 Combining Statement of Revenues, Expenses and Changes in Retained Earnings - Budget and Actual 50 Combining Statement of Cash Flows 51 Fiduciary Funds: Combining Balance Sheet 52 Combining Statement of Plan Net Assets 53 Combining Statements of Changes in Plan Net Assets 54 General Fixed Assets Account Group: Schedule of General Fixed Assets - By Source 55 Schedule of General Fixed Assets - By Function and Activity 56 Schedule of Changes in General Fixed Assets - By Function and Activity 57 III. STATISTICAL SECTION General Governmental Expenditures by Function 58 General Governmental Revenues by Source 59 Property Tax levies and Collections 60 Assessed Value of Taxable Property 61 Property Tax Rates - All Direct and Overlapping Governments 62 Ratio of Net General Bonded Debt to Assessed Value 63 Computation of Legal Debt Margin 64 Direct and Overlapping Debt - General Obligation Debt 65 Ratio of Annual Debt Service Expenditures 66 Revenue Bond Coverage 67 Property Value and Construction 68 Principal Taxpayers 69 Demographic and Miscellaneous Statistics 70-71 Other Supplemental Information: Schedule of Insurance 72 VILLAGE OF TEQUESTA, FLORIDA TABLE OF CONTENTS (Continued) IV. COMPLIANCE SECTION Report of Independent Certified Public Accountants on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 73-74 Management Letter in Accordance with the Rules of the Auditor General of the State of Florida 75-76 Schedule of Findings 77-84 No Text A A A �J INTRODUCTORY SECTION D A I j Ll 1 1 L� I li rl 1 1 1 I I 1 IMay 21, 2002 VILLAGE OF TEQUESTA Post Office Box 3273 • 250 Tequesta Drive, Suite 300 Tequesta, Florida 33469-0273 (561) 575-6200 Fax: (561) 575-6203 To the Citizens of the Village of Tequesta, Florida The Comprehensive Annual Financial Report for the Village of Tequesta, Florida (Tequesta) for the fiscal year ended September 30, 2001 is hereby submitted. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with Tequesta. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds and account groups of Tequesta. All disclosures necessary to enable the reader to gain an understanding of Tequesta's financial activities have been included. r The Comprehensive Annual Financial Report is presented in four sections: introductory, financial, statistical and other reports. The introductory section includes this transmittal letter, Tequesta's organizational chart and a list of principal officials. The financial section includes the general purpose financial statements and schedules, as well as the auditor's report on the general purpose financial statements. The statistical section includes selected financial and demographic information, generally presented on a multi -year basis. The other reports section includes the auditor's reports on internal control, compliance and the management letter. This report includes all funds and account groups of Tequesta. Tequesta provides a full range of services. These services include police protection; fire and emergency medical services; the construction and maintenance of streets, bridges and infrastructure; recreational activities and cultural events; and the operation of a municipal water supply system, in addition to general (" government activities. Tequesta has a contract with a privately owned sanitation company for r refuse and recycling collection service. r —i— Recycled Paper ECONOMIC CONDITION AND OUTLOOK The Village is located at the extreme northeastern quadrant of Palm Beach County. Tequesta is a relatively affluent residential community with adequate commercial facilities -- necessary to provide goods and services to its residents. Northern Palm Beach County ranks as one of the top growth areas in the country. Although Tequesta's growth potential is restricted by the natural boundaries of the Atlantic Ocean to the east, the Loxahatchee River to the west, the -� Town of Jupiter to the south and Martin County to the north, Tequesta's growth potential for the foreseeable future continues to be favorable. Property value assessments for fiscal year 2000/2001 increased approximately 10%. The Village will continue to monitor property values to ensure that any negative developments will be immediately addressed with a fiscal policy necessary to maintain the financial integrity of the Village's financial position, while keeping in mind the level of services provided and the associated tax burden of our citizens. MAJOR INITIATIVES The Village of Tequesta's Mayor and Council in concert with the administration are committed to community enhancement and enhanced quality of life for its residents. The Village has identified significant capital improvement projects to be undertaken in the next year. The _ administration will address these issues through prudent, responsible financial planning and accountability principals. • To build a greater sense of community unity and pride through the completion of a new Public Safety Facility. • Complete utility infrastructure improvements for residents of the Tequesta Peninsula in an efficient and economic manner. • Continue to explore alternative revenue sources, including annexation of unincorporated areas contiguous to the Village's boundaries, and grants from the state and federal government. • The Village of Tequesta has one of the quickest Police and Fire response times in Palm Beach County. The Village will continue to maintain and improve this record and will continue to provide expanded community Police and Fire programs, such as the Tequesta Marine Unit and Canine Team. • Execute lease agreement for the installation of a new mono pole to enhance cellular communications and provide new revenues. • Conduct a fleet audit to assess needs to ensure that the entire fleet system is efficient and current. • To evaluate and implement contemporary financial policies and procedures to ensure for an efficient and economical operation. _ DEPARTMENT HIGHLIGHT Finance Department This year the Finance Department staff has faced some formidable challenges and has demonstrated the ability to rise to these challenges. Some of the challenges faced this year were; 1) 100% turnover in the finance staff, 2) going out for RFP and hiring of new auditors; 3) physically moving the finance offices and files; 4) complete re -installation of the network system; 5) converting the payroll and utility billing software from DOS to Windows and 6) research, complied and corrected errors (dating back several years) in the accounting records. This was achieved while continuing to process the day-to-day business of the Village of Tequesta. Because of the strong, cohesive finance staff that has been developed, the Village of Tequesta can expect to see continued improvements in the coming years. INFRASTRUCTURE MAINTENANCE AND EXPANSION Maintenance and expansion of the community's general infrastructure (such as roads, bridges, sidewalks and storm water drainage systems), streetscape beautification projects, expansion of potable water treatment facilities and development/redevelopment of the Tequesta Village Center is a priority of Tequesta. To address this concern, the government has developed a five-year capital projects plan that provides a framework for the development and maintenance of infrastructure to meet current and future needs. ,.. This plan is revised each budget year in keeping with the priorities and needs of Tequesta. Also, changes affecting budget projections may require changes to the capital projects plan that will enable Tequesta to maintain adequate cash reserves and required fund balances. The 2001 Capital Improvement Fund expenditures for capital outlay totaled $433,023 for the following improvements: Transportation and Drainage Improvements r I I_ 1 I-] Country Club Drive Landscaping & streetlights Seabrook Road Improvements Total Transportation and Drainage Improvements Culture and Recreation Improvements Signage Pathway Improvements Total Capital Improvement Fund Improvements $227,313 155,666 $382,979 $33,187 16,857 50,044 433 2 The 2001 Capital Projects Fund expenditures for capital outlay totaled $725,689 for the following improvements: General Government Improvements Central Business District Redevelopment $311,840 Public Safety Facility 413,849 Total General Government Improvements 725 89 _ The 2001 Storm Water Utility Enterprise Fund expenses for capital additions totaled $4,382. The 2001 Water Enterprise Fund expenses for capital additions totaled $1,650. FINANCIAL INFORMATION The management of the government is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the government are protected from -- loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of the financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. -" Budgetary Controls In addition to conforming to generally accepted accounting principles, Tequesta maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the Village Council. Activities of the General Fund, Special Revenue Fund, Capital Project Funds and Enterprise Funds are included in the annual appropriated budget. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the individual fund level. The government also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Encumbered amounts lapse at year-end. However, encumbrances are generally re -appropriated as part of the following year's budget. As demonstrated by the statements and schedules included in the financial section of this report, Tequesta continues to meet its responsibility for sound financial management. _ General Government Functions Revenues The following schedule presents a summary of General Fund, Special Revenue Fund, .., Capital Project Funds, and the Expendable Trust Fund revenues for the fiscal year ended September 30, 2001, and the amount and percentage of increases and decreases in relation to prior year revenues. -iv- r� S Change % Change Sources Amount % of Total from Prior Year from Prior Year Taxes S 4,102,022 73.16% $ 139,240 3.51% Licenses & permits 83,702 1.49% (13,273) -13.69% Intergovernmental 573,933 10.24% (70,746) -10.97% Charges for service 302.072 5.39% 38,054 14.41% Fines & forfeitures 48,501 0.86% 2,036 4.38% Interest 19'087 3.46% (42,825) -18.08% Miscellaneous 46,116 0.82% 27,987 154.38% Impact fees 4,084 0.07% (25,141) -86.03% Intragovernmental 252.756 4.51% 19,923 8.56% $ 5.607.173 100% $ 75,255 1.36% Taxes accounted for the major sources of revenues in actual resources received for 2001. Tax revenues consist of three district revenue sources: ad valorem (property taxes), franchise fees and utility service taxes. The ad valorem property tax rate for 2001 was 6.7305 mills. Property values also increased 10.3% over the previous year valuation. Expenditures The following schedule presents a summary of General Fund, Special Revenue Fund, Capital Projects Funds, and the Expendable Trust Fund expenditures for the fiscal year ended September 30, 2001, and the amount and percentage of increases and decreases in relation to prior year amounts: S Change % Change Purpose Amount % of Total from Prior Year from Prior Year General government $ 1,216.017 17.58% $ 320,384 35.77% Public Safety 2,996A39 43.32% 347,350 13.11% Transportation 429,390 6.22% 48,018 12.59% Culture/recreation 238,843 3.45% (6,287) -2.56% Capital Outlay 1,385,666 20.03% 945,491 214.80% Debt service 650.454 9.40% 157,266 31.89% TOTALS $ 6.916.809 100% $ 1.812,222 35.50% Alternative revenue sources must be explored such as: expanding the property tax base by growth and development in the community and possible implementing user fees for appropriate government services. General Fund Balance The undesignated balance of the General Fund was $2,411.175 as of September 30, 2001, which is adequate to provide the capital resources for government operations. It is unlikely that Tequesta will enter the short-term debt market to pay for current operating expenditures. f r -v- Proprietary Operations 6Fater Operations Tequesta's water utility operations are reported in the Water Enterprise Fund. Tequesta's potable water system consists of a 2.73 million gallon per day water treatment plant and a ... distribution system of approximately 50 miles of water mains and water storage facilities with a capacity of 1.75 million gallons. Tequesta also purchases 1.5 million gallons of water per day, the contracted minimum, at a bulk rate from the Town of Jupiter, Florida. The current agreement extends through July 15, 2007: $ Change % Change from Current Year Prior Year from Prior Year Prior Year Charges for Services $ 3,459,999 $ 3,855,800 $ (395,801) (10.27) '- Tot. water consumption 1,013,172 1,138,368 (125,196) (10.99) Avg. daily consumption 2.779 3.11 (0.331) (10.64) Fiduciary Operations Tequesta's fiduciary operations consist of an Expendable Trust Fund which was established to account for forfeitures received by the Police Department. In 1996. Tequesta established a Pension Trust Fund to account for the Village ' Employees' Pension Trust Fund. Debt Administration The Debt Service Fund was closed on September 30, 1994. Future debt service payments will be reported in the Special Revenue Fund, for retirement of the Improvement Revenue Refunding Bonds Series 1994, in the amount of $1,365,000, dated June 24, 1994. Tequesta has a legal debt limit established by Section 6.02 of the Village Charter. The aggregate indebtedness regardless of type (general obligation bonds, revenue bonds or special assessment bonds) cannot exceed 10% of the assessed taxable value of real property located within Tequesta. As of September 30, 2001, taxable real property within Tequesta was assessed at $487,490,952. As of September 30, 2001, Tequesta's net bonded debt was $738,088, the ratio of net bonded debt to taxable value was 0.15%, and the net bonded debt per capita was $139.61. Cash Management Tequesta maintains two pooled cash accounts known as the general corporation --' investment account and the water enterprise investment account. The Finance Director monitors cash requirements and the Village Manager, upon recommendation from the Finance Director, approves temporary idle cash for investment. The investment policy of Tequesta is to maximize its investments in high quality, risk -free securities authorized by State statutes, while maintaining a competitive yield on its portfolio. OM Tequesta's investments for the current year consisted of deposits with the State Board of Administration - Local Government Surplus Funds Trust Fund Investment Pool, obligations of the U.S. Government, and amounts held by an outside custodian on behalf of the Pension Trust Funds. Investments with the State Board of Administration consist of obligations of the U.S. Treasury and its agencies, money market securities of highest quality such as commercial paper, banker's acceptance, corporate notes and repurchase agreements. Because of the short maturities and high quality, securities in this fund are considered practically risk free. On September 30, 2001, investments held by Tequesta totaled $11,537,239, which is detailed in Note 3, (Notes to Cash & Investment Footnotes). The average yield on short-term surplus operating funds investments maturing during the year was 5.11%. Risk Management During 2001, Tequesta continued using third -party insurance coverage for its Risk Management Program. A detailed list of insurance in effect is contained in the Schedule of Insurance on page 72 of this report. OTHER INFORMATION Independent Audit Florida state statutes require an annual audit by independent certified public accountants. The accounting firm of Rachlin, Cohen & Holtz, LLP, CPA's was selected to conduct Tequesta's audit. The auditor's report on the general purpose financial statements is included in the financial section of this report. Awards 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. 2000. This was the eighteenth consecutive year that Tequesta has received this prestigious award. In order to be awarded a Certificate of Achievement, Tequesta had to publish an easily readable and efficiently organized comprehensive annual financial report. This report satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. Acknowledgements The completion of the Comprehensive Annual Financial Report was made possible by the dedicated service of the entire staff of the Finance Department. Each member of the department has our sincere appreciation for the contributions made in the preparation of this report. In closing, without the leadership and support of the Village Council of the Village of Tequesta, preparation of this report would not have been possible. ... Sincerely, Michael o , Village Manager JoAnn Forsythe Finance Director VILLAGE OF TEQUESTA, FLORIDA CERTIFICATE OF ACHIEVEMENT SEPTEMBER 30, 2001 1 Certificate of F7 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, 2000 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. \ NCF 7OZSA UNREUyGOA c ' ca+PORAT n+ Pr sident txK�:o ze raw? Executive Director 1 -1C- iz m '.1 x VILLAGE OF TEQUESTA, FLORIDA COUNCIL-MANAGER FORM OF GOVERNMENT SEPTEMBER 30, 2001 VILLAGE COUNCIL 2000-2001 Geraldine A. Genco Joseph N. Capretta Basil E. Dalack Russell von Frank Sharon D. Walker VILLAGE OFFICIALS Michael Couzzo, Jr. John C. Randolph (Jones, Foster, Johnston & Stubbs, P.A.) Mary A. Wolcott JoAnn Forsythe, CPA James M. Weinand Stephen J. Allison Jeffrey Newell Gary Preston Michael Estok Mayor Vice -Mayor Councilmember Councilmember Councilmember Village Manager Village Attorney Village Clerk Finance Director Fire Chief Police Chief Director of Community Development Director of Public Works & Recreation Utilities Director INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS Rachlin Cohen & Holtz LLP i �J FINANCIAL SECTION 1 A P [i 1 I I� A No Text I 1 1 1 I I 1 REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS 1 1 1 I 1 I No Text F Rachlin Cohen & Holtz LLP Certified Public Accountants & Consultants REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS Honorable Mayor, Village Commission and Village Manager Village of Tequesta, Florida We have audited the accompanying general purpose financial statements of the Village of Tequesta, Florida (the Village) as of and for the year ended September 30, 2001, as listed in the table of contents. These general purpose financial statements are the responsibility of the Village's management. Our responsibility is to express an opinion on these general purpose 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 general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Village of Tequesta, Florida at September 30, 2001 and the results of its operations and cash flows of its proprietary fund types 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 April 18, 2002 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, and grants. 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. Be 450 East Las Olas Boulevard, Suite 950, Ft. Lauderdale, Florida 33301 • Tel 954-525-1040 • Fax 954-525-2004 Offices in: Miami • Ft. Lauderdale • West Palm Beach • Stuart www.rchcpa.com Member of Summit International Associates, Inc. with offices in principal cities throughout the world Member of the American Institute of Certified Public Accountants and member of the Florida Institute of Certified Public Accountants I I I I I Ll v 1 I I I I v r I Honorable Mayor, Village Commission and Village Manager Village of Tequesta, Florida Page Two Our audit was performed for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying combining, individual fund and account group statements and schedules as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Village. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. The information shown in the statistical section listed in the table of contents has not been subjected to the auditing procedures applied in the audit of the general purpose financial statements and accordingly, we express no opinion thereon. Fort Lauderdale, Florida April 18, 2002 1� r 5 r r r r t r I I r r F, r I W p N I I'd GENERAL PURPOSE FINANCIAL STATEMENTS (Combined Statements - Overview) 1 t I e No Text O l- 00 o0 110 N 00 N O O [— N Wn to 00 ~ O ri l� O r- N ct O ~ N -� r- �,O n 00 00 r- ~ tr 1p cp C O Q 00 h 00 r- O V') \-p 00 N \0 00 N — M l- — N !.. Os .s ~ ~ no o 00 a69 M M br9 U U � � Qj 00 00 69 N N 69 00 00 N 01tn a1 00 cC �p y 14� O Cp oo en �p l� 00 lI) O l� O 00 O� l- 00 00 N wl V') O 00 lO N N lr N a W O N \D 00 N l-- to N Oi O V z U o M 0000 pro W E" U W b D A O O Q M 00 M `r' a o0 0-4 � a _ d E 60q O\ 00 t/y Q\ 00 i 00 00 r 00 M N � N G�1 O vNi d tn eq N O O 4. N N � v v 40. ~ y O" w U .�•+ N O 3 O o C2 m cd �A►y�UOw U�� . ' M 1�0 00 N 00 O N a\ O 110 r- N O O O O r O M N �O M a\ O� O O t � �D O� N O cd N rn V'1 rn 00 rn � 10 M to \O r- IT 00 rn O 01 00 00 N 00 y N O O (- O t� IL, No bA 00 F--II Vl M •�� 0000 a 6q Cd X 00 M tn �tn N W 69 -- \C 00 N � � O �D Q � a\ O lc A O p4 O� N vi l- to n t- 00 C'� �.O ►� �., 7Ii y to M (— O1 d 00 to 00 M v'� :WJ Qx O N 00 Oa C7 a O w Gqeq _ w W N Cd O O C U N 04 W a O' s9 o. [�I A CO U W b r. cV N Cd `'' `' c en O o C/] fI9 W rA N cd � Gd O �^ rA 'b N _N W U y Cdd O . J to > O z ° O 0. 0 � to 'b y n �-- O , b4 O cn r ou �r 4 4 �"i ^ i�1 ✓1 > Q) rn O 0 O ° O 4. Co O to U3Uocd AAA UU0Z 3 .ca O 'd �t C r- N N O CN1.0 r- 00 r- N M ct 00 ct O �o -- vn O �° r- N M O N O a\ I -- N O O ON — P cn 00 -- �O O{• 00 M O N M It \p � N O 00 N O — 00 IC -j 00 00 00 r` C1 C�, r- � O E O kn M kn ClON 00 \O -- .-- N Ct r- - N tn y U 00 a69 6s 00 00 69 69 U 'C �+ M �C Vl (0 Lr) A Vn cC �' N � � MItp o �1:4w N o, N 00 Ham' 00 N :a Q Cx4 p O N i N O t� i V) .-, N — N �I W Cd M 00 00 .--i c� v� Z U :t4 ., O z 0 �� p w N N ON M N 0 w a W Q � � 00 00 o a w � es sA m „ 00 00 0 Q (? r` M C� N --� N O1 � N N O1 .--+ 00 0 0 enN � O .-. CN V7 � N 'IT 00 .-+ 69 N N ~ O � b cd Q O m N d U ai N 4W 4 42 N• cd r. 00 'O 3 cl U L.' ° c� p 0 eo -d d J' 7 O cd v A H H �UUxAw�awr�wA ° w VILLAGE OF TEQUESTA, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND FISCAL YEAR ENDED SEPTEMBER 30, 2001 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Interest Miscellaneous Impact fees Intragovernmental Total revenues Expenditures: Current: General government Public safety Transportation Culture/recreation Capital outlay Debt service: Principal retirement Interest Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating transfers in Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues over expenditures and other financing sources (uses) Fund balances, beginning Fund balances, ending Governmental Fund Types Special Capital General Revenue Projects $3,687,679 $414,343 $ 8,328 75,374 573,933 - 302,072 - 47,351 - 163,006 9,242 46,116 - 4,084 - 252,756 5,085,325 498,959 Fiduciary Fund Type Expendable Totals Trust (Memorandum Fund Onlv1 $ - $ 4,102,022 - - 83,702 - 573,933 - - 302,072 - 1,150 48,501 20,960 779 193,987 - - 46,116 4,084 252,756 20,960 1,929 5,607,173 1,216,011 - - - 1,216,011 2,996,439 - - - 2,996,439 430,813 - - - 430,813 238,843 - - - 238,843 223,063 - 1,158,713 3,889 1,385,665 406,147 80,000 - - 486,147 105,212 59,095 - - 164,307 5,616,528 139,095 13158,713 3,889 6,918,225 (531,203) 359,864 (1,137,753) (1,960) (1,311,052) 561,117 60,300 2,003,235 - 2,624,652 (247,100) (396,990) - - (644,090) 314,017 (336,690) 2,003,235 - 1,980,562 (217,186) 23,174 865,482 (1,960) 669,510 3,075,051 118,738 348,330 12,339 3,554,458 $2,857,865 $141,912 $1,213,812 $ 10,379 $ 4,223,968 ..r �-J �.J '-W .. See notes to general purpose financial statements. -6- VILLAGE OF TEQUESTA, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL GOVERNMENTAL FUND TYPES FISCAL YEAR ENDED SEPTEMBER 30, 2001 General Fund Special Revenue Fund Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Revenues: Taxes $ 3,618,784 $ 3,687,679 $ 68,895 $ 385,530 $ 414,343 $ 28,813 Licenses and permits 11,000 8,328 (2,672) 86,100 75,374 (10,726) Intergovernmental 534,145 573,933 39,788 - - - Charges for services 298,461 302,072 3,611 Fines and forfeitures 53,500 47,351 (6,149) - - - Interest 91,000 163,006 72,006 4,100 9,242 5,142 Miscellaneous - 46,116 46,116 - - - Impact fees 5,670 4,084 (1,586) - Intragovernmental 252,854 252,756 (98) - Total revenues 4,865,414 5,085,325 219,911 475,730 498,959 23,229 Expenditures: Current: General government 1,319,869 1,216,017 103,852 - - - Public safety 2,952,602 2,996,439 (43,837) - - - Transportation 480,640 429,390 51,250 - - - Human services 1,000 - 1,000 - - - Culture/recreation 305,090 238,843 66,247 - - - Capital outlay 127,170 223,064 (95,894) - - - Debt service: Principal retirement 309,834 406,147 (96,313) 80,000 80,000 - Interest 104,692 105,212 (520) 59,040 59,095 (55) Total expenditures 5,600,897 5,615,112 (14,215) 139,040 139,095 (55) Excess (deficiency) of revenues over expenditures (735,483) (529,787) 205,696 336,690 359,864 23,174 Other financing sources (uses): Operating transfers in 561,117 561,117 - 60,300 60,300 - Operating transfers out (247,100) (247,100) - (396,990) (396,990) - Total other financing sources (uses) 314,017 314,017 - (336,690) (336,690) - Excess (deficiency) of revenues over expenditures and other financing sources (uses) $ (421,466) (215,770) $ 205,696 S - 23,174 S 23,174 Fund balances, beginning 3,075,051 118,738 Fund balances, ending $ 2,859,281 S 141,912 -7- (Continued) VILLAGE OF TEQUESTA, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL GOVERNMENTAL FUND TYPES (Continued) FISCAL YEAR ENDED SEPTEMBER 30, 2001 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Interest Miscellaneous Impact fees Intragovernmental Total revenues Expenditures: Current: General government Public safety Transportation Human services Culture/recreation Capital outlay Debt service: Principal retirement Interest Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating transfers in Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues over expenditures and other financing sources (uses) Fund balances, beginning Fund balances, ending Capital Project Funds Totals (Memorandum Only) Variance Variance Favorable Favorable Budget Actual (Unfavorable) Bud2et Actual (Unfavorable) $ - $ - $ - $ 4,004,314 $ 4,102,022 $ 97,708 - - - 97,100 83,702 (13,398) - - - 547,565 573,933 26,368 - - - 298,461 302,072 3,611 - - - 53,500 47,351 (6,149) 1,315,975 20,960 (1,295,015) 1,411,075 193,208 (1,217,867) - - - - 46,116 46,116 - - - 5,670 4,084 (1,586) - - - 264,674 252,756 (11,918) 1,315,975 20,960 (1,295,015) 6,682,359 5,605,244 (1,077,115) - - - 1,242,345 1,216,011 26,334 - - - 2,952,602 2,996,439 (43,837) - - - 494,507 430,813 63,694 - - - 1,000 - 1,000 - - - 310,965 238,843 72,122 4,225,650 1,158,713 3,066,937 4,478,925 1,381,776 3,097,149 - - - 389,834 486,147 (96,313) - - - 163,732 164,307 (575) 4,225,650 1,158,713 3,066,937 10,033,910 6,914,336 3,119,574 (2,909,675) (1,137,753) 1,771,922 (3,351,551) (1,309,092) 2,042,459 2,003,235 2,003,235 2,003,235 2,003,235 - 2,624,652 2,624,652 - (644,090) (644,090) 1,980,562 1,980,562 $ (906,440) 865,482 $ 1,771,922 $(1,370,989) 671,470 $ 2,042,459 348,330 3,542,119 $1,213,812 $ 4,213,589 See notes to general purpose financial statements. -8- VILLAGE OF TEQUESTA, FLORIDA ENTERPRISE FUNDS COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS FISCAL YEAR ENDED SEPTEMBER 30, 2001 Operating revenues: Charges for services $ 4,033,071 Licenses and permits Total 263,988 operating revenues 4,297,059 Operating expenses: Purchased services 827,504 Personal services 868,270 �.. Professional services 135,445 Contractual services 294,575 Travel and per diem 1,973 Management services 239,712 Office supplies 31,220 Operating supplies 92,637 Repairs and maintenance 221,409 Utilities 188,234 Insurance 48,365 Other 56,321 Depreciation 444,442 Total operating expenses 3,450,107 Operating income 846,952 Non -operating revenues (expenses): Interest income 433,163 Miscellaneous revenue 437,025 Grants and other revenue 178,717 Interest expense and fiscal charges (402,006) Net non -operating revenues 646,899 Income before operating transfers 1,493,851 Operating transfers: Operating transfers in 180,873 Operating transfers out (2,161,435) Total operating transfers out (1,980,562) Net loss (486,711) Retained earnings, beginning 10,683,723 Retained earnings, ending $10,197,012 See notes to general purpose financial statements. -9- VILLAGE OF TEQUESTA, FLORIDA ENTERPRISE FUNDS COMBINED STATEMENT OF CASH FLOWS FISCAL YEAR ENDED SEPTEMBER 30, 2001 Cash flows from operating activities: Operating income $ 846,952 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 444,442 Changes in operating assets and liabilities: (Increase) decrease in: Accounts receivable (164,035) Due from other funds 90,670 Other assets (2,938) Increase (decrease)in: Accounts payable and accrued liabilities 160,873 Deferred revenue 261,315 Compensated absences (24,506) Due to other funds 1,057,567 Net cash provided by operating activities 2,670,340 Cash flows from non -capital financing activities: Operating transfers from other funds 180,873 Operating transfers to other funds (2,161,435) Other miscellaneous revenues 428,689 Net cash used in non -capital financing activities (1,551,873) Cash flows from capital and related financing activities: Acquisition and construction of fixed assets (2,594,752) Principal payments (161,780) Interest paid (402,006) Net cash used for capital and related financing activities (3,158,538) Cash flows from investing activities: Purchases and sales of investments 1,354,377 Interest received on investments 620,136 Net cash provided by investing activities 1,974,513 Net decrease in cash and cash equivalents (65,558) Cash and cash equivalents, beginning (including restricted cash of $1,119,226) 2,469,592 Cash and cash equivalents, ending (including restricted cash of $961,227) $2,404,034 V.1 -09 ..r See notes to general purpose financial statements. -10- VILLAGE OF TEQUESTA, FLORIDA COMBINED STATEMENT OF CHANGES IN PLAN NET ASSETS PENSION TRUST FUNDS FISCAL YEAR ENDED SEPT-EMBER 30, 2001 ADDITIONS Contributions: Employer Employees State Total contributions Investment income (loss): Net depreciation in fair value of investments Interest and dividends Less investment expenses Net investment loss Total reductions DEDUCTIONS Pensin benefits/refunds Administrative expense Total deductions Net decrease Net assets held in trust for pension benefits: Beginning Ending See notes to general purpose financial statements. -11- $ 55,381 82,359 4,783 142,523 (238,273) 49,345 (13,414) (202,342) (59,819) 30,046 2,388 32,434 (92,253) 1,697,858 $1,605,605 No Text rA I 1 NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS 1 1 n I 1 f� A No Text VILLAGE OF TE UESTA FLORIDA Q NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS SEPTEMBER 30, 2001 NOTE 1. SUMMARY 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 a Council -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 general purpose 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 GASB Statement No. 14, The Financial Reporting Entity, which establishes standards for defining and reporting on the financial reporting entity. The definition of the financial reporting entity is based upon the concept that elected officials are accountable to their constituents for their actions. One of the objectives of 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 primary government, organizations for which the primary government is financially accountable, and other organizations for which the nature and significance of their relationship with the primary government 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 these 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 Firefighters' Pension Trust Fund, The Police Officers' Pension Trust Fund, and The General Employees' Pension Trust Fund. This component unit does not issue a stand alone financial report. 1 -12- VILLAGE OF TEQUESTA, FLORIDA — NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) b. Measurement Focus, Basis of Accounting and Basis of Presentation The accounts of the Village are organized and operated on the basis of funds and account groups. A fund is an independent fiscal and accounting entity with a self -balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance -related legal and contractual provisions. The minimum number of funds is maintained consistent with legal and Ls managerial requirements. Account groups are a reporting device to account for certain assets and liabilities of the governmental funds not recorded directly in those funds. The following are the funds and account groups used by the Village: Governmental funds are used to account for the Village's general government activities, including the collection and disbursement of earmarked monies (special revenue funds) am and the acquisition or construction of general fixed assets (capital projects funds). The General Fund accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Special Revenue Fund accounts for revenue sources that are legally restricted to .. expenditures for specific resources. The Special Revenue Fund accumulates revenues as required by the Improvement Revenue Refunding Bonds, Series 1994. These revenues include franchise fees and occupational licenses. The Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those to be financed by the Enterprise Funds). The Village has established the following two capital projects funds: Capital Improvement Fund Capital Projects Fund Proprietary Funds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The Village applies all applicable FASB pronouncements issued on or before November 30, 1989 unless those pronouncements conflict with or are contradicted by GASB pronouncements. Proprietary funds include the following fund type: Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or service to the " general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. 3191! VILLAGE OF TEQUESTA, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) b. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued) The Village has established four Enterprise Funds as follows: Water Fund Storm Water Utility Fund Refuse and Recycling Fund Community Development Fund Fiduciary Funds account for assets held by the Village in a trustee capacity or as an agent on behalf of others. Trust funds account for assets held by the Village under the terms of a formal trust agreement. The Pension Trust Funds are accounted for in essentially the same manner as the proprietary funds, using the same measurement focus and basis of accounting. The Village has three pension trust funds as follows: Firefighters' Pension Trust Fund Police Officers' Pension Trust Fund General Employees' Pension Trust Fund The Expendable Trust Fund is accounted for in essentially the same manner as the governmental fund types, using the same measurement focus and basis of accounting. The Village has one Expendable Trust Fund, the Special Law Enforcement Trust Fund, to account for forfeitures received by the Police Department to be expended for certain law enforcement purposes as prescribed by Florida Statute Chapter 932.704. Account Groups. The general freed assets account group is used to account for fixed assets not accounted for in proprietary or trust funds. The general long-term debt account group is used to account for general long-term debt and certain other liabilities that are not specific liabilities of proprietary or trust funds. ic. Basis of Accounting The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and expendable trust funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. All proprietary funds and pension trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the balance sheet. Fund equity (i.e., net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in net total assets. -14- VILLAGE OF TEQUESTA, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) c. Basis of Accounting (Continued) The modified accrual basis of accounting is used by all governmental fund types and expendable trust fund. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used " to pay liabilities of the current period. A 90 day availability period is used for revenue recognition for all other governmental fund revenues. Expenditures are recorded when the related fund liability is incurred. Those revenues susceptible to accrual are franchise fees, taxes, special assessments, licenses, interest revenue, and intergovernmental revenues. Sales taxes collected and held by the state " at year end on behalf of the Village are also recognized as revenues. Fines and permit revenues are not susceptible to accrual because generally they are not measurable until received in cash. d. Budgets and Budgetary Accounting Formal budgetary integration is employed as a management control device during the year for the General Fund, Special Revenue Fund, Capital Projects Funds and the Enterprise Funds. All budgets are legally enacted through passage of an ordinance. Budgets are adopted on a basis consistent with generally accepted accounting principles. 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 1S`, the Village Manager submits to the Village Council a proposed operating budget for the fiscal year commencing the following October I". 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 I", the budget is legally enacted through passage of an ordinance. L 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. During the year, supplemental appropriations of $394,639 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. .. -15- VILLAGE OF TEQUESTA, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) e. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, demand deposits and short-term investments with maturities of three months or less when purchased. f. Investments Investments are reported at fair value. g. Interfund Receivables and Payables Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are reported as "due to/from other funds." h. 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 are recorded on the balance sheet as a reservation of fund balance. 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. i. Fixed Assets Fixed assets used in governmental funds are recorded in the General Fixed Assets Account Group at cost or estimated historical cost if purchased or constructed. Donated fixed assets are valued at estimated fair value on the date of donation. Public domain ("infrastructure"), including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems are not capitalized. Assets recorded in the General Fixed Asset Account Group are not depreciated. Depreciation of all exhaustible fixed assets used by proprietary funds is charged as an expense against operations. Accumulated depreciation is reported on proprietary fund balance sheets. Depreciation has been provided over the estimated useful lives using the straight-line method. The estimated useful lives are as follows: Buildings 20-40 years Improvements 20-30 years Equipment 3-10 years The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend the assets' lives are not included in the general fixed assets account group or capitalized in the proprietary funds. -16- VILLAGE OF TEQUESTA, FLORIDA .. NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) I.- NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) j. Amortization The issuance costs and debt discount on long-term debt are amortized over the life of the bonds using the straight-line method. "' k. Compensated Absences Compensated absences are amounts employees have earned for vacation and sick leave. Compensated absences are accrued as employees earn the rights to the benefits based upon length of service. In the governmental funds, compensated absences that are expected to be liquidated with expendable available financial resources are reported as an expenditure and fund liability. .r Amounts not expected to be liquidated with expendable financial resources are reported in the General Long -Term Debt Account Group. In the proprietary funds and similar trust funds, compensated absences are recorded as an expense and liability. J 1. Deferred Revenues Revenues collected in advance are deferred and recognized as revenue in the period earned m. Long -Term Obligations The Village reports long-term debt of governmental funds at face value in the General Long - Term Debt Account Group. Certain other governmental fund obligations not expected to be financed with current available financial resources are also reported in the general long-term debt account group. Long-term debt and other obligations financed by proprietary funds are reported as liabilities in the appropriate funds. n. Encumbrances Encumbrance accounting is used for purposes of budgetary control and recorded at the time a purchase order or other commitment is entered into. Encumbrances outstanding at year end are reported as reservations of fund balances until expended or accrued as a liability of the fund. o. Reserves and Designations The Village has established reservation and designations of fund balances and retained earnings. The reserved fund balances for governmental funds represent those portions of the fund balance not considered as available for future appropriation or legally segregated for a specific use. Reserved retained earnings for proprietary funds represent the net assets that have been legally identified for specific purposes. Designated fund balances represent tentative plans for future use of financial resources. -17- VILLAGE OF TEQ UESTA FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) p. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although these estimates are based on management's knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. q. Memorandum Only — Total Columns Total columns on the general purpose financial statements are captioned as "memorandum only" because they do not represent consolidated financial information and are presented only to facilitate financial analysis. The columns do not present information that reflects financial position or results of operations in accordance with accounting principles generally accepted in the United States. Interfund eliminations have not been made in the aggregation of this data. r. Comparative Data/Reclassifications Comparative total data for the prior year has been presented in selected sections of the accompanying financial statements in order to provide an understanding of the changes in the Village's financial position and operations. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation. NOTE 2. PROPERTY TAXES Ad valorem taxes are assessed and liened as of January l' and billed the following October. They are due and payable on November V 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 301h, unpaid delinquent taxes, if any, are reflected as a receivable on the balance sheet. Assessed values are established by the Palm Beach County Property Appraiser at approximately fair market value. The assessed value of property at January 1, 2000, upon which the 2000-2001 levy was based, was approximately $436 million. The County bills and collects all property taxes for the Village. 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 VILLAGE OF TEQUESTA, FLORIDA `r NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 2. PROPERTY TAXES (Continued) 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, 2001 was 6.865 mills per $1,000 of assessed valuation. NOTE 3. CASH AND INVESTMENTS Cash Cash includes cash on hand and checking accounts. In addition to insurance provided by the Federal Deposit Insurance Corporation, significant deposits are held in banking institutions approved by the State Treasurer of the State of Florida to hold public funds. Under Florida Statutes Chapter 280, Florida Security for Public Deposits Act, the State Treasurer requires all Florida qualified public depositories to deposit with the Treasurer or another banking institution eligible collateral. Accordingly, all amounts reported are insured or collateralized. Investments Investments consist of the Local Government Surplus Funds Trust Fund administered by State Board of Administration and investments held by the Village's retirement funds. The Local Government Surplus Funds Trust Fund is governed by Ch. 19-7 of the Florida Administrative Code, which identifies the Rules of the State Board of Administration. These rules provide guidance and establish the general operating procedures for the administration of the Local Government Surplus Funds Trust Fund. Additionally, the Office of the Auditor General performs the operational audit of the activities and investments of the State Board of Administration. The Local Government Surplus Funds Trust Fund is not a registrant with the Securities and Exchange Commission (SEC); however, the funds have adopted operating procedures consistent with the requirements for a 2a-7 fund. Florida Statutes authorize the Village to invest surplus funds in the Local Government Surplus Funds Trust Fund, administered by the State Treasurer, negotiable direct obligations of or obligations unconditionally guaranteed by the U.S. Government; interest bearing time deposits in financial institutions located in Florida and organized under Federal or Florida laws; obligations of the Federal Farm Credit Banks, the Federal Home Loan Mortgage Corporation, the Federal Home Loan Bank or its district banks, or obligations guaranteed by the Government National Mortgage Association and obligations of the Federal National Mortgage Association. Investments (including restricted investments) consist of funds held with the state investment pool, obligations of the United States government and funds held by an outside custodian on behalf of the Pension Trust Funds. -19- VILLAGE OF TEQUESTA, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 3. CASH AND INVESTMENTS (Continued) Investments (Continued) The Village's investments are categorized below to give an indication of the level of custodial credit risk assumed by the Village at year end. '- Category 1 Insured or registered, or securities held by the Village or its agent in the Village's name. Category 2 Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the Village's name. Category 3 Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Village's name. At year end, the Village's investment balances were as follows: Category 3 Fair Value Obligations of U.S. Government Investment in: Corporate bonds $ 178,860 $ 178,860 Government backed securities 362,758 362,758 Government bonds Corporate stock 1,032,438 716,203 1,032,438 716,203 $2,290,259 2,290,259 Investments not subject to categorization: Cash, equity in pooled cash and equivalents 1,597,984 Mutual funds 1,561,319 State investment pool Total 6,077,677 $1.1 527 239 The state investment pool, administered by the State Board of Administration of Florida, contained certain floating rate notes during the fiscal year and as of September 30, 2001, which were indexed based on the prime rate and/or one and three month LIBOR rates. The value of the pool shares is equal to the fair value of the Village's reported balance in the State investment pool. Cash, cash equivalents and investments are presented in the combined balance sheet as follows: Cash and cash equivalents $ 1,903,187 Investments 7,877,068 9,780,255 Restricted assets: Cash and cash equivalents 961,227 Investments 785,757 Total $1.1,527,239 -20- VILLAGE OF TEQUESTA, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 4. INTERFUND RECEIVABLES AND PAYABLES Individual fund interfund receivables and payables at September 30, 2001 are as follows: Fund General Capital Improvement Capital Projects Water Enterprise Stormwater Utility Firefighters Pension Police Officers' Pension General Employees Pension Total Interfund Administrative Fee Interfund Interfund Receivables Payables $ 757,249 $ - 422,472 - 759,531 162,279 - 1,783,993 132,270 113,955 - 12,166 - 3,015 3,886 - $2,075,408 $2.075,408 During the year ended September 30, 2001, the Enterprise Funds remitted $239,731 to the General Fund for administrative management fees. This amount is reflected as Intragovernmental services revenue in the General Fund and as management fees, an operating expense, in the Enterprise Funds. NOTE 5. RECEIVABLES Enterprise funds accounts receivable consists of the following: Billed services Unbilled services Less allowance for uncollectibles Net accounts receivable NOTE 6. RESTRICTED ASSETS Water Stormwater Refuse and Fund Utility Fund Recycling Fund $554,059 $101 $38 48,597 - - 4 500 - - $598.156 $101 $38 Restricted assets as of September 30, 2001 consist of the following accounts: Total $554,198 48,597 (4,500 $598,295 Cash Investments Total Customer deposits $276,299 $ - $ 276,299 Debt service 43,668 - 43,668 Capital improvements - 592,967 592,967 Construction 591,248 - 591,248 Renewal and replacement - 192,790 192,790 Impact fees 50,012 - 50,012 Total restricted assets $961,227 $785.757 $1,746,984 Mt VILLAGE OF TEQUESTA, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 7. FIXED ASSETS A summary of changes in general fixed assets for the year ended September 30, 2001 is as follows: Land Buildings Improvements other than buildings Equipment Construction in progress Balance October 1, 2000 Additions Balance September 30, Deletions 2001 $ 397,653 $1,496,414 $ - $1,894,067 1,113,919 - - 1,113,919 258,777 - - 258,777 1,933,504 187,676 (9,002) 2,112,178 1,516,335 - (1,516,335) - $5,220,188 $1,684,090 $ 1 525 337 $5,378.941 A summary of changes in the Enterprise Fund's fixed assets follows: Balance Balance October 1, September 30, 2000 Additions Deletions 2001 Land $ 83,336 $ - $ - $ 83,336 Buildings 985,188 - - 985,118 Improvements other than buildings 9,700,212 2,655,057 - 12,355,269 Equipment 287,204 1,736 - 288,939 Construction in progress 9,527,548 15,939 (77,978 9,465,509 20,583,488 2,672,732 (77,978) 23,178,242 Accumulated depreciation 4 8( 50,865) (444,442 - (5,295,307) $15,732,623 $2,228,290 $ 77 978 $L7,882,935 NOTE 8. CAPITAL LEASE COMMITMENTS The Village has entered into three capital leases for the financing of a fire truck, ambulances and vehicles. Payments on all leases are due monthly through October 2003. These lease agreements qualify as capital leases for accounting purposes, and, therefore, have been recorded at the present value of the future minimum lease payments as of the inception date in the general fixed assets account group for governmental fund leases with the related liability in the general long-term debt account group and the Water enterprise fund for the portion related to the proprietary fund leases. y*A VILLAGE OF TEQUESTA, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 8. CAPITAL LEASE COMMITMENTS (Continued) The following is a schedule of the future minimum lease payments under these capital lease arrangements at September 30, 2001: General Long -Term Debt Fiscal year ending September 30: 2002 2003 2004 Total minimum lease payments Less amount representing interest Present value of future minimum lease payments NOTE 9. LONG-TERM DEBT a. General Long -Term Debt Revenue Bonds —1994 $ 98,924 88,752 88,752 276,428 29.732 $246,696 The Village issued Improvement Revenue Refunding Bonds Series 1994 in the amount of $1,365,000 with an interest rate of 6.15% dated June 24, 1994. Pursuant to the Bonds Resolution, 16-93/94, the Village is obligated to use Franchise Fees and Occupational Licenses Fees to pay the principal and interest on the bonds. At September 30, 2001, $880,000 of this issue was outstanding. Remaining revenues after principal and interest may be used for any lawful purpose. Annual requirements to amortize this debt are as follows: Principal Interest Total Year ending September 30: 2002 $ 90,000 $ 54,120 $ 144,120 2003 95,000 48,585 143,585 2004 100,000 42,742 142,742 2005 105,000 36,592 141,592 2006 110,000 30,135 140,135 2007 and thereafter 380,000 47,662 427,662 Total $880 000 $259 836 $1,139 836 Line of Credit On June 12, 1997, the Village Council authorized management to enter into a line of credit for $1,000,000 with a bank. The line of credit bears an interest rate of 60% of the bank's prime lending rate. Interest is payable monthly with principal due at maturity, which is 12 months from the date of closing. The proceeds from the loan is to be used to fund capital -23- 1-1 r. r VILLAGE OF TEQUESTA, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 9. LONG-TERM DEBT (Continued) a. General Long -Term Debt (Continued) Line of Credit (Continued) projects within the Village. The Village subsequently increased the line of credit to $6,000,000. The line of credit was renewed January 11, 2002 for another year. As of September 30, 2001, the balance on the line was $1,564,907. Note Payable On August 12, 1997, the Village entered into an installment purchase agreement to purchase a copy machine. The Village financed $15,721 over a term of 48 months at an interest rate of 7.5%. The note was paid in full during fiscal year end September 30, 2001. Claims Payable The Village's workers' compensation insurance company notified the Village that it had insufficient assets to meet its ultimate claims liabilities. Therefore, each member of the fund must fund its own individual costs, which would include claims administration and payments of indemnity and medical expenses of injured employees for any claims prior to July 1, 1998. Each member will be billed for actual costs. As of September 30, 2001, the Village had incurred and paid expenses of $13,364. The Village has two open claims for which there could be substantial settlements. As of September 30, 2001, the settlement amounts are estimated to be $165,000, which the Village has recorded a liability in the General Long -Term Debt Account Group. Changes in general long-term debt of the Village for the year ended September 30, 2001 are summarized as follows: October 1, September 30, 2000 Additions Deletions 2001 Improvement Revenue Bonds $ 960,000 $ - $ 80,000 $ 880,000 Line of Credit 1,900,903 - 335,996 1,564,907 Capital Lease Obligations 314,127 9,193 76,624 246,696 Claims and Judgments Payable 165,000 - - 165,000 Compensated Absences 361,182 - 32,071 329,111 Note Payable 4,029 - 4,029 - Total $3,705.241 $9.193 $528.720 $3,185,714 b. Enterprise Funds Water Revenue Bonds —1998 The Village issued Water Revenue Bonds Series 1998 in the amount of $7,915,000 with a varying interest rate of 3.8% to 5.125% dated March 1, 1998. Pursuant to the Bond -24- VILLAGE OF TEQUESTA, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 9. LONG-TERM DEBT (Continued) b. Enterprise Funds (Continued) Water Revenue Bonds —1998 (Continued) Resolution, 7-97/98, the Village is obligated to establish and maintain required reserves as noted in Note 10 — Required Reserves. At September 30, 2001, the outstanding balance was $7,640,000. Annual debt service requirements are as follows: Principal Interest Payments Year ending September 30: 2002 $ 145,000 $ 376,038 $ 521,038 2003 150,000 369,915 519,915 2004 160,000 363,325 523,325 2005 165,000 356,255 521,255 2006 170,000 348,885 518,885 Thereafter 6,850,000 4,530,341 11,380,341 Total 7,640,000 6,344,759 13,984,759 Less unamortized discount (105,564) - (105,564) 4436 $6,344 759. $13,879 1. 95 Note Payable On August 12, 1997, the Village entered into an installment purchase agreement to purchase a copy machine for the Water Department. The Village financed $16,118 over a term of 48 months at an interest rate of 7.51%. The note was paid off during the fiscal year ended September 30, 2001. On April 9, 1999, the Village entered into a note payable agreement to finance the cost of a new utility billing system. The Village financed $108,000 over a term of 48 months at an interest rate of 4.75%. As of September 30, 2001, the balance of the note was $58,669. Annual debt service requirements are as follows: Principal Interest Payments Year ended September 30: 2002 $21,946 $2,068 $24,014 2003 22,897 1,117 24,014 2004 13,826 182 14008 Total $58,669 $3,367 $62,036 c. Defeasance of Long -Term Debt In prior years, the Village defeased the 1978 Series $3,915,000 Water Revenue Refunding Bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the Village's financial statements. At September 30, 2001, $2,540,000 of bonds outstanding are considered defeased. ..r .,. ..r ..d -25- VILLAGE OF TEQUESTA, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 10. REQUIRED RESERVES The Bond Resolution of the Water Revenue Bonds Series 1998 requires the establishment of the following accounts: Account Purpose Construction To accumulate funds for payment of construction costs. Revenue To collect the entire gross revenues derived from the water system except investment earnings. Debt service To accumulate sufficient funds to meet the annual debt service requirements through transfers from the revenue account. Operation and maintenance To pay all operating expenses of the system. Rebate To accumulate funds to meet any possible arbitrage rebate expenses, if required. Renewal and replacement To accumulate funds for the purpose of paying for the cost of extensions, additions to, or the replacement of capital assets of the system. Reserve To accumulate funds for payment of principal and interest only if funds in the debt service funds are insufficient. Rate stabilization To accumulate funds to be used for any lawful purpose including making deposits in the revenue account. Impact fees To accumulate impact fee revenue received each fiscal year. To be used in the event that funds in the revenue account are insufficient to funds the debt service account. The reserves for revenue bond retirement and renewal and replacement represent the total of restricted assets less amounts payable from restricted assets as reported in the water fund. 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 statement and required supplementary information for the FRS. The latest available report was for the fiscal year ended June 30, 2001. That report may be obtained by writing to the -26- VILLAGE OF TEQUESTA, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 11. FLORIDA RETIREMENT SYSTEM (Continued) Plan Description (Continued) State of Florida Division of Retirement, Department of Management Services, 2639-C North Monroe Street, Tallahassee, Florida 32399-1560. Funding Policy Participating employers are required to make contributions based upon statewide contribution rates. The contribution rates by job class for the Village's employees at September 30, 2001 were as follows: regular employees — 7.3%, special risk employees — 18.44% and senior management — 9.28%. These rates include 1.11% for the employer Health Insurance Subsidy contribution, which is the same for all risk classes. The Village's contributions to the FRS for the fiscal years ended September 30, 1999, 2000 and 2001 were $302,071, $229,701 and $193,585, respectively, which were equal to the required contributions for each fiscal year. NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM The Village maintains a single -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 Plan was 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 Board 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 three pension trust funds do not issue stand alone financial statements and have been included in the financial statements of the Village as pension trust funds. 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. -27- VILLAGE OF TEQUESTA FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Pension Trust Funds (Continued) Method Used to Value Investments Investments are reported at fair value. Short-term investments are reported at cost which approximates fair value. Securities traded on a national or international exchange are valued at the last reported sales price at current exchange rates. Concentration of Investments The Plan did not have any investments of 5% or more in any one organization. PLAN DESCRIPTION AND CONTRIBUTION INFORMATION 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 October 1, 2000, the date of the latest actuarial valuation: FPTF PPTF GPTF Retirees and beneficiaries currently receiving benefits and terminated - - employees entitled to benefits but not yet receiving them Active employees: ' Vested Non -vested 17 5 10 Total 17 5 10 Benefit provisions and contribution requirements of plan members and the Village are established, and may be amended, by the Village Council. a. Public Safety Officers' Trust Fund Plan Description Any firefighter or police officer who completes ten 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 amount of normal retirement income for a firefighter is equal to the number of years of credited service multiplied by 3% of his average highest compensation. Early retirement may be taken after a firefighter has attained the age of 50 and has ten years of credited service. In the event of early retirement, benefits are actuarially reduced to take into account the firefighter's younger age and earlier commencement of retirement benefits. Such reduction shall not exceed -28- �.r VILLAGE OF TEQUESTA, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued) a. Public Safety Officers' Trust Fund (Continued) Plan Description (Continued) 4% per year. Disability benefits can be received for total and permanent disabilities as determined by the Board of Trustees. If the pension is granted, the benefit amount shall be as follows: If the injury or disease is service connected, the firefighter or police officer shall be _ entitled to the greater of (a) or (b): (a) A monthly pension equal to 42% of his average compensation, or _ (b) An amount equal to the number of years of his credited service multiplied by 3% of his average monthly salary based upon his highest five years of service. If the injury or disease is not service connected, the firefighter or police officer shall be entitled to the greater of (a) or (b): (a) A monthly pension equal to 25% of his average compensation, or (b) An amount equal to the number of years of his credited service multiplied by 3% of his average monthly salary based upon his highest five years of service. 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 Compensation for life. (b) Non -Line -of- Duty -Death — the spouse of a member with ten 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 ten years of credited service, he is entitled to a refund of the money he contributed. Funding Policy Firefighters and police officers are required to contribute 5% of their compensation to the plan. The State of Florida contributes the net proceeds of the excise tax imposed upon casualty and property insurers. 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; however, contribution requirements of plan members and the Village are established and may be amended by the Village Council. -29- VILLAGE OF TEQUESTA, FLORIDA r NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued) b. General Employees' Pension Trust Fund Plan Description Any general employee who completes ten or more years of credited service and attains age 62, or completes 30 years of credited service regardless of age, is eligible for normal retirement benefits. The monthly amount of normal retirement income for a general employee is equal to the number of years of credited service multiplied by 2% of his average highest compensation. Early retirement may be taken after a general employee has attained the age of 50 and has ten years of credited service. In the event of early retirement, benefits are actuarially reduced to take into account the general employee's 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 compensation, 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 highest 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 compensation, 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 highest 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 ten years of credited ..� service, he is entitled to a refund of the money he contributed. Funding Policy General employees are required to contribute 5% of their compensation to the plan. The Village is required to contribute the remaining amount to fund the plan using the aggregate actuarial cost method as approved by the plan's Board of Trustees; however, contribution requirements of plan members and the Village are established and may be amended by the Village Council. -30- VILLAGE OF TEQUESTA, FLORIDA r NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued) Pension: Cost Annual The Village's 2001 annual pension cost and actual contributions for each plan are shown below. The required contributions were determined as part of the October 1, 2000 actuarial valuation for each plan. Annual Village State Pension Actual Actual Cost Contribution Contribution Firefighters' Pension Trust Fund $23,806 $47,023 $4,783 Police Officers' Pension Trust Fund 18,199 - - General Employees' Pension Trust Fund 12,887 32,822 - Components of Annual Pension Cost and Net Pension Obligation J The following schedule was determined as part of the October 1, 2000 actuarial valuation for the Firefighters', Police Officers', and General Employees' Pension Plans. Firefighters' Police Officers' General Employees Annual required contribution (ARC) $ 82,881 $ 6,384 $17,456 Interest on net pension obligation (NRO) (9,513) (5,076) - Adjustment to ARC 11,377 5,869 - Annual pension cost 84,745 7,177 17,456 Actual contributions 80,645 25,710 26,053 Increase (decrease) in NPO 4,100 (18,533) (8,597) NPO at beginning of year (118,911 (63,477 - NPO at ending of year $ _114 811 $ 81 980 $(8 597 Fiscal Year Endin Firefighters' Retirement System: September 30, 1999 September 30, 2000 September 30, 2001 Police Officers' Retirement System: September 30, 1999 September 30, 2000 September 30, 2001 General Employees' Retirement System: September 30, 1999 September 30, 2000 September 30, 2001 Three -Year Trend Information Annual Percentage Net Pension of APC Pension Cost (APQ Contributed Obligation $83,817 170.6% $(118,911) 84,745 95.2 (114,811) 62,395 - (52,416) 6,694 678.2 7,177 358.2 19,571 131.4 17,456 100.0 17,456 149.2 13,024 - (63,447) (81,980) (88,119) (8,597) 4,427 -31- IVILLAGE OF TEQUESTA, FLORIDA I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 13. DEFERRED COMPENSATION PLAN The Village offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all full time Village employees, ' permits them to defer a portion of their salary until future years. The deferred compensation is not available to plan participants or their beneficiaries until termination, retirement, death or unforeseeable emergency. The Village's Deferred Compensation Plan has funds held by the ICMA Retirement Corporation. In January 1998, the ICMA Deferred Compensation Plan was amended to conform with the changes in the Internal Revenue Code brought about by the Small Business Job Protection Act of 1996 (the "Act"). The Act requires that eligible deferred compensation plans established and maintained by governmental employees be amended to provide that all assets of the Plan be held ' in trust, or under one or more appropriate annuity contracts or custodial accounts, for the exclusive benefit of plan participants and their beneficiaries. As a result of this change, plan assets will no longer be subject to the claims of the Village's general creditors. Because the Village has little administrative involvement and does not perform the investing function for funds in the ICMA Plan, the Village's activities do not meet the criteria for inclusion in the fiduciary funds of a government. Consequently, the Plan was removed from the Village's general purpose financial statements. NOTE 14. COMMITMENTS AND CONTINGENCIES Long -Term Agreement to Purchase Water On July 15, 1976, the Village entered into an agreement with Tri-Southern Utilities Company, Inc. (the agreement was subsequently assumed by the Town of Jupiter) to purchase water for the Village's water system for a period of 30 years. Rates for water service are based on wholesale rates. The Village is billed monthly based upon a 1,500,000 gallons per day contracted minimum. Lease Agreements On December 20, 1994, the Village entered into an Interlocal agreement with Palm Bach 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. On December 6, 1996, the Village entered into a three year lease agreement to rent commercial office space for the administrative, finance and water services staff. The base annual rent is $47,132 adjusted annually for the Consumer Price Index. At the end of the three year lease, the Village has the option to renew for three additional one year terms. On December 1, 1999, the Village renewed the lease for an additional year with no change in base rent. -32- VILLAGE OF TEQUESTA, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 14. COMMITMENTS AND CONTINGENCIES (Continued) Contracted Services — Refuse and Recycling Collection Effective October 1, 1989, the Village entered in a five year franchise agreement with Nichols Sanitation, Inc. for curbside solid waste and recycling collection services. On October 14, 1993, the Village amended the franchise agreement. The amendment extended the agreement for an additional five years commencing October 1, 1994. For consideration of the extension, the collection rates were reduced. In addition, the Village assessed a 6% franchise fee for each residential customer, effective October 1, 1994. Nichols Sanitation may also adjust the curbside and recycling rates beginning October 1, 1995, and each October 151 thereafter based upon the change in the Consumer Price Index (CPI). 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, 2001, fire protection fees received from Jupiter Inlet Colony were $160,494. Construction Commitments Significant construction commitments as of September 30, 2001 are as follows: Estimated Estimated Expended Cost to Completion Description to Date Complete Date Governmental Funds Capital Projects Fund: Public Safety Facility Main Street Enterprise Funds Water Fund. Phase I — Water Main Replacement Phase II — Water Main Replacement Store: Water Utility Fund. - Phase I — Drainage Phase II — Drainage $ 58,000 $3,543,000 December 2002 50,000 100,000 August 2002 $1,521,877 $ 22,600 February 2002 110,448 183,002 March 2002 $ 293,529 $ 46,495 February 2002 352,941 273,923 March 2002 NOTE 15. CONTRIBUTED CAPITAL — ENTERPRISE FUNDS Contributions in the Enterprise Funds consist of water connection charges, assessments and similar items contributed by customers and developers in exchanged for the right to receive service for new construction. During the fiscal year ended September 30, 2001, the Village implemented GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange -33- IVILLAGE OF TEQUESTA, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 15. CONTRIBUTED CAPITAL — ENTERPRISE FUNDS (Continued) Transactions. Implementation of GASB No. 33 requires that current year effect of contributed capital be accounted for as capital contributions as presented on the statement of revenues, expenses, and changes in retained earnings. r NOTE 16. 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 continues to r purchase commercial insurance coverage to cover the various risks. Retention of risks is limited to those risks that are uninsurable and deductibles ranging from $250 to $10,000 per occurrence. Major uninsurable risks include damages to infrastructure assets. Since the amount of loss cannot be reasonably estimated and the likelihood of occurrence is not determinable, no provision for losses is reflected in the financial statements. There were no settled claims which rexceeded insurance coverage during the past three fiscal years. The Village is insured under a retrospectively rated policy for workers' compensation coverage. The plan is a trust fund comprised of local governmental entities. The premiums are based on the risk class and remuneration of covered employees adjusted by an experience modification based on the claims history of the Village. At the end of the premium year, the Village can either receive a discount or pay an additional premium based on its claims experience. The Policy for the current fiscal year has been finalized with no additional premium due. Should a deficit develop in the trust fund after excess insurance recoveries, the Village shall thereafter be Fresponsible for its individual costs. NOTE 17. SEGMENT INFORMATION FOR ENTERPRISE FUNDS The Village maintains four separate enterprise funds which provide water, stormwater, refuse and recycling services and community development. Segment information for the year ended September 30, 2001 was as follows: Storm Refuse and Community Water Water Recycling Development Total Operating revenues $ 3,459,999 $ 300,683 $234,501 $ 302,076 $ 4,297,259 �.. Depreciation 415,065 23,999 - 5,378 444,442 Operating income (loss) 693,195 192,139 14,293 (53,224) 846,403 Non -operating revenues 346,480 224,074 8,330 68,015 646,899 Operating transfers in Operating transfers out - (1,571,916) 120,000 (115,456) - 60,873 (474,063) 180,873 (2,161,435) Net income (loss) (531,492) 420,757 22,423 (398,399) (486,711) Property and equipment additions 1,923,936 668,084 - - 2,592,020 r r Net working capital 1,913,166 536,411 80,719 754,093 3,284,389 1 Total assets 23,401,378 1,872,140 98,473 777,043 26,149,034 Total equity 13,131,730 1,613,640 80,519 761,542 15,587,431 -34- VILLAGE OF TEQUESTA, FLORIDA .. NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 18. 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 was not obligated to contribute any funds in the fiscal years 1999, 2000 and 2001. -35- I I I I I I I 1 REQUIRED SUPPLEMENTAL INFORMATION O I I C r P A 11 rf - VILLAGE OF TEQUESTA, FLORIDA .ft REQUIRED SUPPLEMENTAL INFORMATION SCHEDULE OF CONTRIBUTIONS FROM THE EMPLOYER AND OTHER CONTRIBUTING ENTITIES SEPTEMBER 30, 2001 Fiscal Year Firefighters' Pension Fund 1996 1997 1998 1999 2000 2001 Police Officers' Pension Fund 1996 1997 1998 1999 2000 2001 General Employees' Pension Fund 1996 1997 1998 1999 2000 2001 Annual Required Village State Contribution Contribution Contribution Percentage Contributed $ 92,343 $ 83,035 $ 17,083 108.4% 103,571 80,933 32,975 110.0% 115,024 101,403 37,535 120.8% 82,881 107,914 35,118 172.6% 82,881 49,398 31,247 97.3% 59,836 24,694 4,783 49.3% 0.0% 1,282 - 20,140 1571.0% 8,393 8,000 25,134 394.8% 6,384 20,266 29,795 784.2% 6,384 576 42,178 669.7% 18,199 - - 0.0% - - N/A 0.0% 11,399 11,400 N/A 0.0% 13,440 13,440 N/A 100.0% 17,456 17,456 N/A 100.0% 17,456 26,053 N/A 149.2% 12,887 30,687 N/A 238.1% -36- VILLAGE OF TEQUESTA, FLORIDA NOTES TO THE REQUIRED SUPPLEMENTAL INFORMATION FISCAL YEAR ENDED SEPTEMBER 30, 2001 -- Police General Firefighters Officers Employees Pension Pension Pension Fund Fund Fund Valuation date 10/1/00 10/1/00 10/1/00 Actuarial cost method Aggregate Aggregate Aggregate Amortized method (1) (1) (1) Remaining amortization period (1) (1) (1) Asset valuation method Fair value at valuation Fair value at valuation Fair value at valuation Administrative costs Included in calculation Included in calculation Included in calculation of normal cost of normal cost of normal cost Actuarial assumption: Investment rate of return* 8% 8% 8% Projected salary increase* 6% 6% 6% iv *Includes inflation at 4% 4% 4% Cost of living adjustments 0% 0% 0% (1) When the aggregate actuarial cost method is used, unfunded actuarial liabilities are not identified or separately amortized. -37- .-4 GENERAL FUND 1 1 1 1 1 1 I 1 ij VILLAGE OF TEQUESTA, FLORIDA SCHEDULE OF REVENUES - BUDGET AND ACTUAL GENERAL FUND FISCAL YEAR ENDED SEPTEMBER 30, 2001 Taxes: Ad valorem taxes: Current ad valorem taxes Delinquent ad valorem taxes Total ad valorem taxes Public service taxes: Electric Telephone Gas Water Total public service taxes Local option gas tax Total taxes Licenses and permits: Other licenses and permits Intergovernmental: State revenue sharing Alcoholic beverage licenses One-half cent sales tax 911 maintenance reimbursement Grants Other Total intergovernmental Charges for services: Certification, copying, record search Fire rescue service Fire inspections Fire plan review services EMS transport service Other fire rescue/EMS services Extra duty - contracted services Total charges for services Variance Favorable Budget Actual (Unfavorable) $ 2,843,719 $ 2,866,818 $ 23,099 7,500 4,954 (2,546) 2,851,219 2,871,772 20,553 370,800 347,272 (23,528) 100,000 118,403 18,403 18,540 32,212 13,672 120,000 134,352 14,352 609,340 632,239 22,899 158,225 183,668 25,443 3,618,784 3,687,679 68,895 11,000 8,328 (2,672) 129,210 138,844 9,634 6,630 2,860 (3,770) 345,000 402,637 57,637 37,985 17,878 (20,107) 7,200 7,200 - 21,540 4,514 (17,026) 547,565 573,933 26,368 3,000 2,755 (245) 160,494 160,494 - 14,000 11,306 (2,694) 8,237 6,717 (1,520) 110,030 116,949 6,919 200 438 238 2,500 3,413 913 298,461 302,072 3,611 (Continued) -38- VILLAGE OF TEQUESTA, FLORIDA SCHEDULE OF REVENUES - BUDGET AND ACTUAL GENERAL FUND (Continued) FISCAL YEAR ENDED SEPTEMBER 30, 2001 Fines and forfeitures: Court fines Parking tickets Code enforcement Total fines and forfeitures Interest: Tax collector Investments Total interest Miscellaneous: Other Impact fees: Fire rescue Parks and recreation Total impact fees Intergovernmental services: Administrative management - enterprise funds Rent and utilities - enterprise funds Total intergovernmental services Total revenues Variance Favorable Budeet Actual (Unfavorable) $ 50,000 $ 42,798 $ (7,202) 2,500 3,105 605 1,000 1,448 448 53,500 47,351 (6,149) 6,000 6,724 724 85,000 156,282 71,282 91,000 163,006 72,006 60,580 46,116 14,464 4,020 4,020 - 1,650 64 (1,586) 5,670 4,084 (1,586) 239,974 239,731 (243) 24,700 13,025 (11,675) 264,674 252,756 (11,918) $4,951,234 $5,085,325 $ 163,019 -39- VILLAGE OF TEQUESTA, FLORIDA ... SCHEDULE OF DEPARTMENTAL EXPENDITURES - BUDGET AND ACTUAL GENERAL FUND (Continued) FISCAL YEAR ENDED SEPTEMBER 30, 2001 ... Variance Favorable Budget Actual (Unfavorable) ■- General government: Legislative: Travel and per diem $17,000 $19,117 $ (2,117) Books, publications and dues 6,625 5,351 1,274 Other charges 1,000 1,504 (504) Total legislative 24,625 25,972 (1,347) Executive: Salaries 201,921 228,407 (26,486) F.I.C.A. 15,078 17,663 (2,585) Retirement 16,271 14,736 1,535 Life and health insurance 42,850 31,429 11,421 Workers' compensation insurance 593 566 27 Deferred compensation insurance 5,075 4,071 1,004 Professional fees 18,285 14,737 3,548 Contractual services 7,000 7,719 (719) Travel and per diem 4,375 631 3,744 ,., Office machines maintenance 2,723 206 2,517 Office supplies 2,000 7,063 (5,063) Books, publications, dues 2,697 3,428 (731) Other charges 20,500 18,899 1,601 Total executive 339,368 349,555 (10,187) r Personnel: Salaries 43,512 47,215 (3,703) F.I.C.A. 3,332 3,593 (261) Retirement 3,982 4,275 (293) Life and health insurance 7,790 7,476 314 Workers' compensation insurance 131 131 - Travel and per diem 1,100 - 1,100 Office machines maintenance 1,320 400 920 -- Office supplies 460 427 33 Books, publications, dues 1,011 877 134 Other charges 1,325 738 587 Total personnel 63,963 65,132 (1,169) (Continued) -40- VILLAGE OF TEQUESTA, FLORIDA SCHEDULE OF DEPARTMENTAL EXPENDITURES - BUDGET AND ACTUAL GENERAL FUND (Continued) FISCAL YEAR ENDED SEPTEMBER 30, 2001 Variance Favorable Budeet Actual (Unfavorable) .� General government: Finance: Salaries $ 155,788 $ 101,938 $ 53,850 F.I.C.A. 11,948 7,720 4,228 Retirement 11,845 5,656 6,189 Life and health insurance 24,700 10,456 14,244 r Workers' compensation insurance 474 435 39 Accounting and auditing 14,070 34,551 (20,481) Contractual services 13,550 16,590 (3,040) Temporary services - 65,697 (65,697) Travel and per diem 1,524 235 1,289 Repairs and maintenance 200 - 200 Office machines maintenance 900 534 366 Office supplies 3,000 4,455 (1,455) Electronic communications 15,600 1,195 14,405 Books, publications, dues 1,030 1,403 (373) Other charges 5,990 5,872 118 Total finance 260,619 256,737 3,882 ..r Legal counsel: Legal services 118,450 119,749 (1,299) Other general government: Salaries 95,048 99,318 (4,270) F.I.C.A. 3,448 4,573 (1,125) Retirement 6,695 - 6,695 Workers' compensation insurance 10,000 13,364 (3,364) Other personal services 16,995 10,866 6,129 .� Contractual services 18,430 16,972 1,458 Communication services 9,698 15,998 (6,300) Transportation/postage 9,597 6,393 3,204 Utility services 18,650 22,806 (4,156) Rentals and leases 27,953 34,583 (6,630) Fire hydrant rental fees 27,170 27,170 - Insurance/claims and judgments 9,579 8,930 649 Village hall maintenance 16,668 23,980 (7,312) Promotional activities 14,894 15,217 (323) Printing and binding 750 1,399 (649) Office supplies 5,047 5,529 (482) Books, publications, dues 1,015 2,047 (1,032) Other charges 143,683 89,721 53,962 Total other general government 435,320 398,866 36,454 Total general government 1,242,345 1,216,011 26,334 r: -41- (Continued) Am VILLAGE OF TEQUESTA, FLORIDA r r r i F F u F Ll SCHEDULE OF DEPARTMENTAL EXPENDITURES - BUDGET AND ACTUAL GENERAL FUND (Continued) FISCAL YEAR ENDED SEPTEMBER 30, 2001 Variance Favorable Budget Actual (Unfavorable) Public safety: Police department: Salaries $1,021,650 $ 1,012,027 $ 9,623 Overtime 50,470 81,873 (31,403) F.I.C.A. 79,825 84,915 (5,090) Retirement 144,921 139,863 5,058 Life and health insurance 168,700 133,650 35,050 Workers' compensation insurance 35,844 34,157 1,687 Professional fees 5,400 1,477 3,923 Travel and per diem 7,800 5,346 2,454 Communication services 11,700 9,643 2,057 Rentals and leases 5,228 5,915 (687) Insurance 28,000 31,385 (3,385) Repairs and maintenance 46,675 33,913 12,762 Printing and binding 2,900 2,258 642 Personnel training 17,120 18,254 (1,134) Operating supplies 65,445 49,516 15,929 Office supplies 3,820 5,158 (1,338) Books, publications, dues 2,890 2,137 753 Other charges 21,500 83,031 (61,531) Total police department 1,719,888 1,734,518 (14,630) Emergency and disaster relief: Civil preparedness 7,638 6,702 936 Fire rescue/EMS services: Salaries 809,296 819,428 (10,132) F.I.C.A. 59,825 62,856 (3,031) Retirement 52,374 53,221 (847) Life and health insurance 89,346 107,315 (17,969) Workers' compensation insurance 31,516 30,079 1,437 Volunteer fire rescue/EMS 10,886 10,911 (25) Accounting and auditing 1,970 1,966 4 Contractual services 1,328 1,447 (119) Travel and per diem 3,747 3,999 (252) Communication services 5,801 6,801 (1,000) Utility services 2,552 2,233 319 Rentals and leases 2,556 2,878 (322) Repairs and maintenance 33,723 32,869 854 Insurance 18,229 20,665 (2,436) Printing and binding 773 690 83 Operating supplies 41,625 41,115 510 Office supplies 2,040 2,276 (236) Books, publications, dues 7,017 6,487 530 Other charges 50,472 47,983 2,489 Total fire rescue/EMS services 1,225,076 1,255,219 (30,143) Total public safety 2,952,602 2,996,439 (43,837) -42- (Continued) VILLAGE OF TEQUESTA, FLORIDA SCHEDULE OF DEPARTMENTAL EXPENDITURES - BUDGET AND ACTUAL GENERAL FUND (Continued) FISCAL YEAR ENDED SEPTEMBER 30, 2001 Transportation: Road and street facilities: Salaries F.I.C.A. Retirement Life and health insurance Workers' compensation insurance Professional fees Contractual services Travel and per diem Communication services Utility services Rentals and leases Repairs and maintenance Insurance Operating supplies Road materials and supplies Books, publications, dues Other charges Total transportation Human services: Health - mosquito control: Personnel training Total human services Variance Favorable Budget Actual (Unfavorable) $ 84,338 $ 77,555 $ 6,783 6,294 6,022 272 7,018 8,375 (1,357) 21,940 13,010 8,930 2,295 3,547 (1,252) 37,457 10,497 26,960 108,987 101,669 7,318 500 299 201 1,400 978 422 87,875 80,046 7,829 1,450 1,577 (127) 109,500 97,212 12,288 12,410 12,370 40 4,743 4,002 741 7,000 12,667 (5,667) 300 198 102 1,000 789 211 494,507 430,813 63,694 1,000 - 1,000 1,000 - 1,000 (Continued) -43- VILLAGE OF TEQUESTA, FLORIDA SCHEDULE OF DEPARTMENTAL EXPENDITURES - BUDGET AND ACTUAL GENERAL FUND �. FISCAL YEAR ENDED SEPTEMBER 30, 2001 _ Variance Favorable Budeet Actual (Unfavorable) ^ Culture/recreation: Parks and recreation: Salaries $ 72,487 $ 75,501 $ (3,014) F.I.C.A. 5,453 5,929 (476) Retirement 6,522 4,785 1,737 Life and health insurance 16,630 13,805 2,825 ^ Workers' compensation insurance 2,028 3,704 (1,676) Contractual services 52,765 34,753 18,012 Travel and per diem 500 304 196 ^ Communication services 3,400 1,017 2,383 Utility services 37,700 19,689 18,011 Repairs and maintenance 47,300 45,747 1,553 Insurance 3,630 3,855 (225) Operating supplies 2,300 602 1,698 �. Office supplies 100 28 72 Books, publications, dues 150 60 90 Aid to community organizations 7,000 7,000 - -- Aid to government organizations 2,000 1,500 500 Other charges 51,000 20,564 30,436 Total culture/recreation 310,965 238,843 72,122 Capital outlay: General government - executive 2,750 180 2,570 General government - other 13,507 7,955 5,552 General government - personnel 970 475 495 Police 109,773 102,445 7,328 Fire rescue/EMS services 114,775 107,588 7,187 Transportation 11,500 4,420 7,080 ._ Culture/recreation - - - Total capital outlay 253,275 223,063 30,212 ^ Debt service: Principal retirement 309,834 406,147 (96,313) Interest 104,692 105,212 (520) ^ Total debt service 414,526 511,359 (96,833) Total expenditures r� $ 5,669,220 $ 5,616,528 $ 52,692 -44- JIl 1 1 1 CAPITAL PROJECTS FUNDS A 1 1� 1 1 I 1 1 Ll I 1 I j I ij VILLAGE OF TEQUESTA, FLORIDA COMBINING BALANCE SHEET CAPITAL PROJECTS FUNDS SEPTEMBER 30, 2001 ASSETS Cash and cash equivalents Investments Due from other funds Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Due to other funds Total liabilities Fund Balances: Reserved for encumbrances Unreserved: Designated for road projects Undesignated Total fund balances Total liabilities and fund balances Capital Capital Improvement Projects Fund Fund Total $ 245,463 $ - $ 245,463 49,658 - 49,658 422,472 759,531 1,182,003 $ 717,593 $ 759,531 $1,477,124 $ 67,108 $ 33,925 $ 101,033 - 162,279 162,279 67,108 196,204 263,312 9,030 113,597 122,627 155,370 - 155,370 486,085 449,730 935,815 650,485 563,327 1,213,812 $ 717,593 $ 759,531 $1,477,124 -45- VILLAGE OF TEQUESTA, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUNDS �- FISCAL YEAR ENDED SEPTEMBER 30, 2001 Capital Capital Improvement Projects Fund Fund Total Revenues: �— Interest $ 20,960 $ - $ 20,960 Expenditures: Capital outlay 433,024 725,689 1,158,713 Deficiency of revenues over expenditures (412,064) (725,689) (1,137,753) Other financing sources: Transfers in 686,985 1,316,250 2,003,235 Excess of revenues over expenditures and other financing sources 274,921 590,561 865,482 Fund balances, beginning 375,564 (27,234) 348,330 .� Fund balances, ending $ 650,485 $ 563,327 $1,213,812 ... -46- U �n t� N ' N U O N N N O C\ d N Vr M M w 6o) M N 00 O M N -- ,..I Cd o0 p o 00 r � O kr) I'° 00 � en Qu 00 m N �n O kn 00 to�10 en O N C�1 CC1 C\ N 00 C1 0000 O o U f.S z Q a _ a)rn A O 0 •--i O N opt r-' O •--� O w w00 cn U 00 O en z C ° c� �I N M A � kn \O O l� M i way U r- rq o O o d w W I 00 o w z ¢ Uw M W pW„ w Q ¢ W cn A „ o c M � 00 -- �t --' W = A. Q p O O N N N �7 w O U CAN > � 0000 N 0000 in E Q O Ncz Q cC y O M M 00 ON �O 00 N C� l� r� ~ r- kn OM c U N , � b a� a� o 0 03 O 03 iU. O �•� CZ S-4 ti �-. U U 0 O a J F P I r i T ENTERPRISE FUNDS r I I 1 1 I u I r r VILLAGE OF TEQUESTA, FLORIDA COMBINING BALANCE SHEET ENTERPRISE FUNDS SEPTEMBER 30, 2001 ASSETS Assets: Cash and cash equivalents Investments Accounts receivable Due from other funds Inventories Restricted assets: Cash and cash equivalents Investments Other assets Fixed assets Total assets LIABILITIES AND FUND EQUITY Liabilities: Accounts payable Accrued liabilities Payable from restricted assets: Deposits Due to other funds Due to other governments Current portion of: Bonds payable Compensated absences Notes payable Bonds payable Total liabilities Fund equity: Contributed capital Retained earnings: Reserve for: Capital improvements Renewal and replacement Debt service Unreserved Total retained earnings Total fund equity Total liabilities and fund equity Storm Refuse Water and Community Water Utility Recycling Development Fund Fund Fund Fund Total $ 1,409,577 $ - $ 6,434 $ 26,796 $ 1,442,807 2,609,342 662,540 92,001 742,798 4,106,681 598,156 101 38 - 598,295 - 132,270 - - 132,270 37,686 - - - 37,686 961,227 - - - 961,227 785,757 - - - 785,757 201,376 - - - 201,376 16,798,257 1,077,229 - 7,449 17,882,935 $23,401,378 $1,872,140 $ 98,473 $ 777,043 $26,149,034 $ 483,904 $ 144,179 $ 17,954 $ 13,947 $ 659,984 32,051 - - - 32,051 275,696 - - - 275,696 1,783,993 113,955 - - 1,897,948 15,622 - - - 15,622 145,000 - - - 145,000 85,277 366 - 1,554 87,197 58,669 - - - 58,669 7,389,436 - - - 7,389,436 10,269,648 258,500 17,954 15,501 10,561,603 5,155,118 230,825 - 4,476 5,390,419 1,234,227 - - - 1,234,227 192,790 - - - 192,790 43,668 - - - 43,668 6,505,927 1,382,815 80,519 757,066 8,726,327 7,976,612 1,382,815 80,519 757,066 10,197,012 13,131,730 1,613,640 80,519 761,542 15,587,431 $23,401,378 $1,872,140 $ 98,473 $ 777,043 $26,149,034 -48- VILLAGE OF TEQUESTA, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ENTERPRISE FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2001 Storm Refuse Water and Community Water Utility Recycling Development - Fund Fund Fund Fund Total Operating revenues: Charges for services $ 3,459,999 $ 300,683 $ 234,301 $ 38,088 $ 4,033,071 r Licenses and permits - - - 263,988 263,988 Total operating revenues 3,459,999 300,683 234,301 302,076 4,297,059 Operating expenses: Purchased services 612,288 - 215,216 - 827,504 Personal services 682,694 22,213 - 163,363 868,270 Professional services 123,879 11,566 - - 135,445 Contractual services 140,660 8,340 - 145,575 294,575 Travel and per diem 688 46 - 1,239 1,973 Management services 212,486 7,299 4,385 15,542 239,712 Office supplies 28,010 - - 3,210 31,220 Operating supplies 92,452 185 - - 92,637 Repairs and maintenance 188,735 28,677 - 3,997 221,409 Utilities 185,102 - - 3,132 188,234 " Insurance 42,011 2,744 - 3,610 48,365 Other 41,985 3,475 607 10,254 56,321 Depreciation 415,065 23,999 - 5,378 444,442 Total operating expenses 2,766,055 108,544 220,208 355,300 3,450,107 Operating income (loss) 693,944 192,139 14,093 (53,224) 846,952 Non -operating revenues (expenses): Interest income 318,276 37,021 8,330 69,536 433,163 Miscellaneous revenue 428,689 8,336 - - 437,025 Grants and other revenue - 178,717 - - 178,717 Interest expense and fiscal charges (400,485) - - (1,521) (402,006) Total non -operating revenues 346,480 224,074 8,330 68,015 646,899 Income before operating transfers 1,040,424 416,213 22,423 14,791 1,493,851 r Operating transfers: Operating transfers in - 120,000 - 60,873 180,873 Operating transfers out (1,571,916) (115,456) - (474,063) (2,161,435) Net operating transfers in (out) (1,571,916) 4,544 - (413,190) (1,980,562) Net income (loss) (531,492) 420,757 22,423 (398,399) (486,711) Retained earnings, beginning 8,508,104 962,058 58,096 1,155,465 10,683,723 Retained earnings, ending $ 7,976,612 $1,382,815 $ 80,519 $ 757,066 $10,197,012 - -49- ,_ /R A z gg 8 (Sy z m p < v7 F w H w w W zmw uai } � w a O h z w a N z o I 1 ;; 00 p en r b r — N �O G n 00 vi 00 n00 0o aro zt a v o ov o O�Qat; oo vwa g C A 00 T 00 1� O� O v N ... w vi N v vi M 00 O ,C 00 M v b N .-. b Q O r b O >w H 00 P n eo V O Vl v'f M r Vl r Q 'n N r N O ai O r Q r r N pp M O M 'O N O w N v1 Cl' M �D �D Q N M M vi O� M M l- M �O O� n m vi R �-' V1 Vl N •-- o0 00 1p O N �o V'1 IO Q N N ^ O\ M M O� N 00 Q h 00 00 N N 00 Q Q M H 8 y 8 8 "S Q N 0000 a,Q N N M N N O �O In H 00 ao b ' C. T Q Q VMj v v v M .M. Q P L 2 E H O 00 00 `O M Vl N O n N O Q o0 m M X V1 M M M M O h M N O m Q In O N OE NvQ^i OCn O� :V 'oo yO N NU 0M N I N M Iq a H M 00 M y r r M P 00 'O .-. �p 00 > •F H Q 'O M In H u 'INI OC In v N M M 00 OD ' T v1 O Q .• p N 1� � ...• v1 O� Q r N O N h O r �O N O1 r 00 O NO V1 0c 00 'n a lc V1 M ��yy 1F0 F .Q. Q ^ N ry In v iL H O K1 T ' h n Q Vl C, Q P o0 00 'o Q Q a ao n Q r a Q h M N b r Q Cl 'n ^ j O S 00 1� N N M N N 3€ .. O T H O S 8 ' 8 C 8 pp S S O SOoO0'0Oo O O ON r 00' N^l- I N00 I I 00 N N N Q ^ H U '� No vn c�n�000n n pMp� J T b N •N-' VN1 M N b 1� VQl N O a O\ ... O� N b h O m r � M `M-' v oQo � Vl N v H V F 7 c a c T o0 Q P O 00 'D O N '/) N •--V1 Vt w1 00 P r �O o0 00 'n M O 00 'n P O O y 00 N 00 Lo Q � .Q. N N 01 00 0o 3 M M (y f/9 0 0 r� oM'nr �ooaOo 00 a v-� oo 'n o0 0o h n 'n In .. o: C; o ate v,nOQ or 0r25 0 n Y N N n O Cr 00 00 00 8 p 0 CT r n b 0000 .Q. N N N N M^ �D M Q M N M V3 ^I hl � 'n ra M M 10 1� 00 Q y M Q !r — O � Q I i I I Q I N O . O I M tM�l tM+f R 00 00 N N I C>j ..-. 00 Q. M N n N IO Q = O M 1 O N In 00 00 N N Q 88 N 8 O M M n 00 1 00 w Q N IO Q Q b � wp1 ^o 00 8 C M Q Q M P P h pp�� ri O O 'rii � v .N... H M r M Iz N .w 00 00 c w M M aO O n N T 00 00 Y1 M DD oC0 m a P a m H M M O P "1 v7 O t�1 00 Yl r v va M M m CMn 00 O +' O O Q Q N � V VMi 7 ' M N N fH HII M 00 10 00 H O Q O (V N N Q C\ M pp H O a vQi P N vI QI bR II OMO So Q � � O � v � H 00 �o vni vri v 00 a aD n a a a Vnl' Vn1 V'1 > •n F G N N 7 1:2 w C F � Pj, �^ •E v. u E c u GN � •° y a •E 5 u ` u `u y 00 °' a u y `' ou c e0 u v u H u v a E G H O y E U E s_ yc O F o F= •y` C itl i7 �� C. b a 0 C chi u FL F C vu�i " p .�. .�. ,G N E `D N '�" .0 Ol y {G{V0 S1 C 'n C u •E .L O L L' U N U •tC L0 bo E y�y F G OD .0 C 6 N N N c F .'_" ' w o L° 0 °' gi = E �aac[UF-�O�`ajO ,Fi 0 zC7,5 5 z 0" a VILLAGE OF TEQUESTA, FLORIDA COMBINING STATEMENT OF CASH FLOWS ENTERPRISE FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2001 Cash flows from operating activities: Net operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation Changes in operating assets and liabilities: (Increase) decrease in: Accounts receivable Due from other funds Other assets Increase (decrease) in: Accounts payable and accrued liabilities Deferred revenue Compensated absences Due to other funds Net cash provided by (used in) operating activities Cash flows from non -capital financing activities: Operating transfers from other funds Operating transfers to other funds Other miscellaneous revenues Net cash provided by (used in) non -capital financing activities Cash flows from capital and related financing activities: Acquisition and construction of fixed assets Principal paid on notes and bonds Interest paid on notes and bonds Net cash used for capital and related financing activities Cash flows from investing activities: Purchases and sales of investments Interest received on investments Net cash provided by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning Cash and cash equivalents, ending Storm Refuse Water and Community Water Utility Recycling Development Fund Fund Fund Fund Total $ 693,944 $ 192,139 $ 14,093 $ (53,224) $ 846,952 415,065 23,999 - 5,378 444,442 (187,363) 18,810 49 4,469 (164,035) 217,729 (132,270) 5,211 - 90,670 (2,938) - - - (2,938) 25,728 129,850 610 4,685 160,873 262,119 - - (804) 261,315 2,410 215 - (27,131) (24,506) 1,010,539 113,955 (17,676) (49,251) 1,057,567 2,437,233 346,698 2,287 (115,878) 2,670,340 - 120,000 - 60,873 180,873 (1,571,916) (115,456) - (474,063) (2,161,435) 428,689 - - - 428,689 (1,143,227) 4,544 (1,922,286) (672,466) (161,780) - (400,485) - (2,484,551) (672,466) - (413,190) (1,551,873) - (2,594,752) - (161,780) (1,521) (402,006) (1,521) (3,158,538) 847,060 24,041 (4,616) 487,892 1,354,377 318,276 224,074 8,330 69,456 620,136 1,165,336 248,115 3,714 557,348 1,974,513 (25,209) (73,109) 6,001 26,759 (65,558) 2,396,013 73,109 433 37 2,469,592 $2,370,804 $ - $ 6,434 $ 26,796 $2,404,034 r u ow ti.. ft- -51- r p FIDUCIARY FUNDS p f p I I �l I 1 I 1 I n VILLAGE OF TEQUESTA, FLORIDA COMBINING BALANCE SHEET TRUST FUNDS SEPTEMBER 30, 2001 ASSETS Cash and cash equivalents Investments at fair value Receivables Due from other funds Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Due to other funds Total liabilities Fund balances: Reserved for: Law enforcement Employees' pension benefits Total fund balances Total liabilities and fund balances r r -52- Pension Expendable Trust Trust Funds Fund Special Law All Enforcement Pension Trust Funds Fund Total $ 203 $ 1,485 $ 1,688 1,605,148 8,894 1,614,042 21,999 - 21,999 3,886 - 3,886 $1,631,236 $ 10,379 $1,641,615 $ 10,450 $ 15,181 _ 25,631 $ 10,450 15,181 25,631 - 10,379 10,379 1,605,605 - 1,605,605 1,605,605 10,379 1,615,984 $1,631,236 $ 10,379 $1,641,615 f u I n I a I p I I GENERAL FIXED ASSETS ACCOUNT GROUP e n e e I W e I n n 1 VILLAGE OF TEQUESTA, FLORIDA SCHEDULE OF GENERAL FIXED ASSETS - BY SOURCE SEPTEMBER 30, 2001 General fixed assets: Land $1,894,067 Buildings 1,113,919 Improvements other than buildings 258,778 Equipment 2,112,177 Total general fixed assets $ 5,378,941 Investment in general fixed assets: General fund $ 5,378,941 Total investment in general fixed assets $ 5,378,941 r f r r r, -55- VILLAGE OF TEQUESTA, FLORIDA SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION FISCAL YEAR ENDED SEPTEMBER 30, 2001 General government Public safety Transportation Human services Culture/recreation Prior year data which cannot be allocated Total general fixed assets Buildings and Land Improvements Equipment Total $1,844,338 $ 910,568 $ 52,551 $ 2,807,457 - 120,989 1,740,229 1,861,218 - 7,713 242,927 250,640 - - 5,520 5,520 49,728 218,782 70,952 339,462 1,894,066 1,258,052 2,112,179 5,264,297 - 114,644 - 114,644 $1,894,066 $ 1,372,696 $2,112,179 $ 5,378,941 -56- VILLAGE OF TEQUESTA, FLORIDA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION FISCAL YEAR ENDED SEPTEMBER 30, 2001 General government Public safety Transportation Human services Culture/recreation Prior to allocation by function Total general fixed assets General General Fixed Fixed Assets Assets October 1, September 30, 2000 Additions Deletions 2001 $2,821,641 $ 5,738 $ (19,921) $ 2,907,458 1,765,043 106,551 (9,002) 1,862,592 173,878 74,537 - 248,415 5,520 - - 5,520 339,462 850 - 340,312 5,105,544 187,676 (28,923) 5,264,297 114,644 - - 114,644 $ 5,220,188 $ 187,676 S (28,923) S 5,378,941 -57- I 0 STATISTICAL SECTION 0 L W I I I I I I �l I I I I I I I I I I I I r O\ m I� 1.0 O kn �110 "t m N ' O 000 D\ 00 00 O\ O 1- to l� M N N -- to O — �O cri o0 oo N (2 M It Itt to to NT 'IT � to �.O es 0% Wn �C In aD T ++ U O �O r- 00 kn O t t 00 r- N O �—'t 4. .--� 00 �t 116 t- N O� M O A O ON 00 O O O O to O 01 kn 6s M N N N N It It 10 to �.0 • - v1 IC ;M d a\ Q\ a, 00 p, +� N tr N O M O r- ukn O O co I 0�0 O O� � O oo0 � cd O M M U N N N N N � 69 kn kn i to o0 M to \C "t O O N ON C' ,-4 x U Lz. v N I N G W) d W w 6s M t --� (7 --� O O N w (0 O Itt O N N M r- M O1 M 00 00 v) o0 N O\ M �.G , C1 O N N — kn --+ O O1 00 N 't -t qt W) 't 'ct N M 't C H � to M N O Itt O� It 00 ON O\ N --+ O kn l'- M 00 �C 00 M o0 Iq N o0 M �C Cr O lq N N 10 N 00 ON 00 N N ON �C o W) v, 01 -,t [- [- I- t- -t 0� Q, O in -- N to 'IT to �o IC ON N N N N N N N N N N big It .-- N M . y W)� \C N M n O N cn C �C O n O a> M ON vn O vi l- -,r ON 'n �o It M r �--� 'T � to O\ — > l-- O1 �,C I- 00 [- CN 00 00 N 69 id cal N en to c [-- 00 O1 O c> � ON ON D\ O1 ON O\ ON as O O O�c�O�O,ao,o,O,00 w-- -- .-- .-, - -- -- -- N N I 00 N O I'D O\ 1�0 00 M kn to O\ O 00 .--. O\ 00 .-r m r- U) M O\ It 00 I' O\ O N E Oi r- N V� 00 M --: � l� �D "J C1 O\ "t r- N D 6A cn O O [- 00 r- r-� N kn D1 M � M cl� O 0000 O G1 v) N N O M N 00 O D1 r- W O� N O1 C1 'I�r \,o — �D CN O U N N N M N N N "T kn t7 w O rA [� \O [� M O V) oo 00 kn N 00 Ln M M �D O oo l� V') "D — O N cd ` `n 00 U '� ' ,-- �6 00 M o0 cM - f o0 O G•t, s9 W cl y 00 M �--� Q1 M 00 N ^d bA _ W bA a) N M N I'D 00 N [- [- O OM O O O U V N N N N N M Q U w y n O1 O O r- r- M NI:t 00 00 Ln O1 [- M M O U .� i, Z W N N o0 �--� r- o0 O �--� � N- M U N F" C N t" M Ln CV "T 01 00 Vl 01 [- �t 00 "t M l- a U > p v1 l� O N O O M a0 v'i l- N O U Q � 3 yoA u C N o0 O o0 NIt N \�D to N cp V O, r- M a� U N N oo O, O1 N -t N Q\ 00 O a1 oo y U y o U M Im. kn 00 O M B M O_ N DO N qO M OdZ V O1 o� 000rT N N N0 \D �,D M00 00 a\ 00 — C- N "t Vl 00 t- � O, N N N M M M M Cl) It W U .5 cl O � U�• cI N O\ M O\ ON t 1 O1 "D O\ [-- O\ 00 a1 O\ O\ O O �--� O N D, cl� O\ O1 O1 ON CN O\ O r* r VILLAGE OF TEQUESTA, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS (1) LAST TEN FISCAL YEARS Total Current Tax Tax Fiscal Levy Collections Year w w 1992 $1,969,500 $1,960,892 1993 1,973,375 1,958,191 1994 1,968,572 1,950,778 1995 2,048,066 2,028,987 1996 2,166,385 2,158,420 1997 2,270,529 2,263,146 1998 2,457,085 2,450,091 1999 2,653,474 2,642,313 2000 2,858,426 2,846,894 2001 2,985,994 2,970,942 (1) Includes discounts taken by property taxpayers. Source: Palm Beach County Tax Collector's office. Delinquent Percent Outstanding Taxes of Levy Delinquent to Tax Collected Taxes Lev 99.6% $ 8,608 0.4% 99.2% 15,184 0.8% 99.1% 17,794 0.9% 99.1 % 19,079 0.9% 99.6% 7,965 0.4% 99.7% 7,383 0.3% 99.7% 6,994 0.3% 99.5% 11,161 0.4% 99.6% 11,532 0.4% 99.5% 15,052 0.5% -60- ;5 FI r oOO ww- r � > �+ � o0 00 00 00 00 00 00 00 0o ` D1 d� I- M k.0 M W). — l-- 10 W) (D 'n I O C1 C N N r- C1 00 It N cs \O ON r- N w Q1 to C\ .� C\ M M r` M qt r` M M N N N "t kn 'IT 'IT N V) 1.0 6H O F' Men tM V O\ N y� N \O N cM M 00 -- X C1 00 N Ozi� O N CM, It 10 ,t en cT M N -,T 00 r- V1 * -' V) lC 00 O 00 M M M M M M M Ct 69 cq en i i i i i cq e N CO 00 l O 00 O1 a > 69 N N O �cn � > 00 ON 69 N N Q U --� oo a1 01 "t 00 InM w O O kn CN kn r- to 00 k" C� C� N 00 �0 O to .-- N ti; r- l r- O N M CN N 00 \C O 1�6 r- 00 00 06 C�l O .- 69 a V) CN \O %0 N M M 01 (D qt V) O M D\ � d 00 -- � W) (0 O, .� O N 14 � � 01 C\ � 00 69 00 qt O qt N N W) as r` M V7 r- w 10 r- v) N 10 O Vl r- M N O rz O C� �O dr W 00 rz N C\ N w r- h O C\ r- a\ N O «f o0 N �C C� V) C� M rl N > oo �O �O a; 4 'o qt r` N —� O O O N M to M N O a� qt to O O -- M 00 oC�oovc��qqtr-oo c 1,0 M ON 10 r` — t r`cl� o I'o �-- c� O c — M O ,O M r- V) F' ' N N N M ON N �O 6�9 N m qt In \O r- 00 ON O r y C% ON ON ON 01 C� CN a1 O O C� ON CA, ON C1 � C\ ON O O W r P- I It N 00 01 � M V' �t a1 00 00 p O O 00 00 O [— [� N N N N N N N N N N }' p O O O O O O O O O O 70^- a� • kn vi Vn O Wn O O O kn O p N U "�t 'It "t zf O O U x Q - - - - - - - - - - to O1 r- N O O O M O M •� N O N (n t— to 'n " O t` o 0 0 0 0 0 0 0 0 0 U U cOOOOo0000to cd M N — � CD O O t` 00 .� O 'd U to In (n It � I-r) (n �t Tt M ' O O O O O O O O O O w cl z O - N O V y N Ln to kn T O O 00 G� tv W O O O O O O O O O O . t` t` L In���� 10 N U y z N sr Inn V) E4 V) 0 0 cz O O O O O O O O O O o w ca � o E- Vi O M 00 ,--� M m G1 t- B O O a )� C�, 00 01 � 00 CT 01 N zt �t 69 M M M Ct "t V1 V) Vl U O O O O O o 0 0 0 0 a O o 0 0 0 0 0 0 0 0 N M M Vn r` r` r` N 00 00 V) �-O O\ O1 U Gq a, a\ O o O, O; O; ON 00 00 O -,Itq 01 M - O �O O N p -cl� tn ,It N "t l0 � c) M O 10 1D - - - 00 00 00 01 O\ U It It v v 't � qt C'b O O a) to M O v') Ln V) � O CD O OI N O N� o M C` O1 c; �') N M 'It Ln "o � 00 a1 O U N 01 C1 O\ C\ ON 01 ON ON O O cl, D\ O\ O\ O\ a\ 01 O1 O O N VILLAGE OF TEQUESTA, FLORIDA RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA LAST TEN FISCAL YEARS Ratio of Net (B) Bonded Net (A) Debt Debt Bonded Gross Service Net to Debt Fiscal Taxable Bonded Monies Bonded Assessed Per Year Population* Value Debt Available Debt Value Capita 1992 4,533 $ 356,914,548 $ 615,000 $123,720 $ 491,280 0.14% $ 108.38 1993 4,551 344,814,635 580,000 120,530 459,470 0.13% 100.96 1994 4,609 343,161,444 1,365,000 98,453 1,266,547 0.37% 274.80 1995 4,623 344,238,467 1,310,000 85,751 1,224,249 0.36% 264.82 1996 4,637 353,641,212 1,250,000 35,977 1,214,023 0.34% 261.81 1997 4,686 362,944,338 1,185,000 39,562 1,145,438 0.32% 244.44 1998 5,036 384,054,333 1,115,000 48,871 1,066,129 0.28% 211.70 1999 5,122 408,293,784 1,040,000 75,874 964,126 0.24% 188.23 2000 5,273 441,936,119 960,000 118,738 841,262 0.19% 159.54 2001 5,307 487,490,952 880,000 141,912 738,088 0.15% 139.08 m -63- VILLAGE OF TEQUESTA, FLORIDA COMPUTATION OF LEGAL DEBT MARGIN SEPTEMBER 30, 2001 Total assessed value Legal debt margin: Debt limitation - 10% of total assessed value Total bonded debt outstanding Less amount available in debt service fund (b) Total debt applicable to limitation Legal debt margin $ 487,490,592 $ 48,749,059 $ 880,000 141,912 738,088 $ 48,010,971 Palm Beach County Property Appraiser's Office, Form DR-422 "Final Current Year Gross Taxable Value" (b) IBR - Special Revenue -64- VILLAGE OF TEQUESTA, FLORIDA COMPUTATION OF DIRECT AND OVERLAPPING DEBT SEPTEMBER 30, 2001 Taxing Authority Direct: Village of Tequesta Overlapping: Palm Beach County Palm Beach County School Board Total overlapping Total Source: Above Government Entities. Percentage Amount Net Applicable Applicable Debt to to Outstanding TeQuesta Te uesta $ 738,088 100.00% $ 738,088 267,485,000 0.64% 1,711,904 221,080,000 0.64% 1,414,912 488,565,000 3,126,816 $ 489,303,088 $ 3,864,904 -65- A - VILLAGE OF TEQUESTA, FLORIDA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES LAST TEN FISCAL YEARS Ratio of Debt Service Total Total to Debt General Total Fiscal Service Expenditures General Year Principal Interest w w Expenditures 1992 $ 35,000 $ 56,009 $ 91,009 $ 3,679,759 2.5% 1993 35,000 53,565 88,565 4,338,773 2.0% 1994 221,383 83,093 304,476 4,628,487 6.6% 1995 90,354 111,061 201,415 5,429,306 3.7% 1996 100,556 106,305 206,861 5,610,290 3.7% 1997 104,059 103,712 207,771 4,857,465 4.3% 1998 138,071 114,158 252,229 4,815,656 5.2% 1999 246,325 163,592 409,917 6,271,032 6.5% 2000 250,768 98,460 349,228 5,104,622 6.8% 2001 453,354 197,545 650,899 6,916,809 9.4% -66- w N C, O\ 'T r` N y > U to ON kn N M 00 Itt r co +0 00 M wn �o ON 00 ON N et E y to to — en r O\ 00 N N Nth N en N - M to to �+ N A m 00 o0 in v1 [t kn to v) N 00 N �o -- to NQ Ntr V1 r r 00 N " � i O U Q� Q 6A to r Wn o kn O, o to o O wA to Ur^rw� — m O 00 kn 00 :T r C7w v ? o°r°��- rn� 00000^ [tea O O o0000 O O O O 0 00 0 A� oovioo Wrio � � o W O LT. C r r N N N .M— F w w a fie O H i -- IC O � en It M 00 N ct N a z > r �t ON r en N 00 00 O M eq N > alu A �n to to �n en �n en oo r, r o '% r^ a3 > V) ^ ICI rs -� 00 O to -- to .-• Os � tn 00 N r- cdO_ rn 0000 �_ 'ITO -- to a1 N 00 .-- U U N M 00 N N N N N N N N 6H cn � rn N � — N CN N- N y cp \. O 00 M r O O\ r v ko O1 v' 00 N — kn r l7 y M cn lO O\ N n O\ .� O N N N N m cn M 69 m cq 00 U cl� U O1 all O1 ON O\ O\ ON O O D\ O\ O\ O4� 01 O'� ON O O N N OCN CN 0 0 o 0 � � M ON cd 69 w w O 3 C o U U N can cqs rn � 3 cr a 4.)U) to v� 00 o o at o UGj j c� bq .C* 0. N I r-- VILLAGE OF TEQUESTA, FLORIDA PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS (UNAUDITED) LAST TEN FISCAL YEARS r New Commercial New Residential Just Property ^ Construction (1) Construction (1) Value 3 Number Number Fiscal of of (4) Real Personal Year Units Value Units Value Deposits (2) Proj2eM Proj2eM 1992 - $ - 11 $2,395,128 $308,119,520 $418,897,038 $20,706,881 1993 1 101,700 8 2,083,944 278,165,130 406,420,054 16,779,738 1994 - - 25 3,134,633 293,551,944 406,281,260 17,709,182 1995 1996 - - 10 1,658,043 326,394,550 3 2,248,278 6 1,127,624 319,213,870 409,679,164 424,956,672 18,042,404 18,268,307 1997 2 320,400 169 14,896,648 314,744,875 436,504,082 18,374,057 1998 1999 2 2,852,090 12 3,080,959 - 5 11,374,822 11 2,722,156 454,995,565 487,378,779 19,996,199 20,210,854 2000 2 9,485,904 7 2,421,146 - 522,793,351 21,865,379 2001 9 3,176,655 1 500,000 - 601,222,227 21,621,054 Source: (1) Village of Tequesta Building Department. (2) Tequesta Commercial Banks and Savings and Loan Associations. (3) Palm Beach County Property Appraiser's Office. 4 O Information resented where available. P -68- VILLAGE OF TEQUESTA, FLORIDA PRINCIPAL TAXPAYERS SEPTEMBER 30, 2001 Cromwell Robert F Et Al (Villager Apartments) Lighthouse Cove Apartments, Ltd. Tamwest Realty, Inc. (County Line Plaza) RRC FL Three, Inc. (Tequesta Shoppes) H & J Tequesta Association AHC Purchaser, Inc. Tequesta County Club Fashion Mall, Inc. Oz of Tequesta, Inc. Lplace Properties, Ltd. Shockley F. Kenneth Percentage Type 2001 of of Assessed Assessed Business Valuation Valuation Apartments $41,279,816 8.47% Apartment Building 13,850,954 2.84 Shopping Center 12,522,836 2.57 Shopping Center 7,720,000 1.58 Shopping Center 5,450,000 1.12 Assisted Living Facility 5,000,000 1.03 Golf Club 3,688,747 0.76 Shopping Center 1,800,000 0.37 Shoppes 1,670,818 0.34 Bank Building 1,697,382 0.35 S/F Home 1,730,033 0.35 $ 96,410,586 19.78% Source: Palm Beach County Property Appraiser's Office .. ..r *.. 0.0 1060 VILLAGE OF TEQUESTA, FLORIDA DEMOGRAPHIC AND MISCELLANEOUS STATISTICS SEPTEMBER 30, 2001 Date of Incorporation 1957 Forms of Government Council -Manager, 3 Councilmembers elected _ even years, 2 Councilmembers elected odd years Municipal Elections Non -Partisan Area Approximately 2 square miles Miles of Streets Approximately 46.6 lane miles Fire Protection Number of stations - 1 Number of certified firefighters - 17 F/T, 5 P/T Fire Rating - 4 Police Protection Number of stations - 1 Number of certified officers - 18 F/T, 0 P/T Number of dispatchers - 4 F/T, 2 P/T Municipal Water Department Number of customers - 5,076 Average daily consumption - 2.779 million gallons Miles of water mains - approximately 50 miles Sanitary Sewage Service provided by Loxahatchee River Environmental Control District (ENCON) Storm Sewers Service provided by Loxahatchee River Environmental Control District (ENCON) Garbage Collection Service franchised to Nichol's Sanitation Frequency of service is bi-weekly Electric Service Florida Power & Light Company Telephone Service BellSouth Building Permits Issues 970 Recreation and Culture Number of parks - 3, approximately 48 acres Number of libraries - 1, branch of Palm Beach County System Number of volumes - 20,000 - 22,000 Municipal Employees Full time - 65 -70- Fiscal Population Year w 1992 4,533 1993 4,551 1994 4,609 1995 4,623 1996 4,637 1997 4,686 1998 5,036 1999 5,122 2000 5,273 2001 5,307 VILLAGE OF TEQUESTA, FLORIDA DEMOGRAPHIC STATISTICS (UNAUDITED) LAST TEN FISCAL YEARS Per Capital Income Median Age 0 Education Level in Years of Formal Schooling Unemployment Rate w 8.8% 9.2% 8.4% 7.0% 7.5% 3.6% 4.7% 5.7% 5.2% 5.5% Sources: (1) Palm Beach County Planning Board, University of Florida Estimates and Federal Census. (2) U.S. Department of Commerce, Bureau of the Census. Information only available for years provided. (3) Job Services of Florida. -71- VILLAGE OF TEQUESTA, FLORIDA SCHEDULE OF INSURANCE SEPTEMBER 30, 2001 Policy Numbe Coveraize Coregis Commercial Package (Buildings, Contents/Special Property) Coregis 651006854 $11,260,293 Group Life Insurance Canada Life 85597 1.5 times annual salary maximum of $150,000 Group Hospitalization Cigna 3150680 Various Business Automobile Liability Coregis 651006854 $ 2,000,000 Public Employees Blanket Fidelity Bond CCP0017500 $ 100,000 Public Official Bond Zurich 08538214 $ 100,000 Workmen's Compensation PGiT 139100 $ 1,000,000 Public Official's Errors and Omissions POD0001605 $ 1,000,000 Police Professional Liability Coregis 651006854 $ 2,000,000 EMT Professional Liability Coregis 651006854 $ 2,000,000 Boiler and Machinery Liability FBPAT9442007 $ 5,000,000 Unlawful and Intentional Death (Police and Fire Department personnel) ETB 102089 $ 75,000 Pollution Liability FPL7509020 $ 1,000,000 Fiduciary Liability (Pension Board of Trustees) Travelers 103505325 $ 2,000,000 -72- No Text COMPLIANCE SECTION A. ,- 1 J 1 I LP I r— L A 1 7 1 A [I f7 Rachlin Cohen & Holtz LLP Certified Public Accountants & Consultants Report of Independent Certified Public Accountants on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Honorable Mayor, Village Commission and Village Manager Village of Tequesta, Florida We have audited the general purpose financial statements of the Village of Tequesta, Florida (the Village) as of September 30, 2001 and for the year then ended, and have issued our report dated April 18, 2002. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether the Village's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, 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 that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting; In planning and performing our audit, we considered the Village's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in our judgment, could adversely affect the Village's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements. -73- One Southeast Third Avenue, Tenth Floor, Miami, Florida 33131 • Tel 305-377-4228 • Fax 305-377-8331 Offices in: Miami • Ft. Lauderdale • West Palm Beach • Stuart www.rchcpa.com Member of Summit International Associates, Inc. with offices in principal cities throughout the world Member of the American Institute of Certified Public Accountants and member of the Florida Institute of Certified Public Accountants 1 I I I I 1 I I I I �j A Honorable Mayor, Village Commission and Village Manager Village of Tequesta, Florida Page Two A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal controls over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. However, we do not believe that any of the reportable conditions described in the schedule of findings as Items 00-1 through 00-6 are material weaknesses. In addition, we noted other matters involving the internal control over financial reporting that we have reported to management in the accompanying schedule of findings. This report is intended for the information and use of the Mayor, Village Commission, management and the Auditor General of the State of Florida and is not intended to be and should not be used by anyone other than the specified parties. However, this report is a matter of public record and its distribution is not limited. Fort Lauderdale, Florida April 18, 2002 -74- I 1 f� I 1 J I 1 Rachlin Cohen & Holtz LLP Certified Public Accountants & Consultants Management Letter in Accordance with the Rules of the Auditor General of the State of Florida Honorable Mayor, Village Commission and Village Manager Village of Tequesta, Florida We have audited the general purpose financial statements of the Village of Tequesta, Florida (the Village) as of and for the year then ended, and have issued a report thereon dated April 18, 2002. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. In connection with our audit of the general purpose financial statements of the Village for the year ended September 30, 2001, we report the following in accordance with Chapter 10.550 Rules of the Auditor General Local Governmental Entity Audits which requires that this report specifically address but not be limited to the matters outlined in Rule 1O.554(1)(g): 1. No inaccuracies, shortages, defalcations, and/or violations of laws, rules, regulations and contractual provisions were reported in the preceding annual financial audit, except as reported in the accompanying schedule of findings. 2. The Village, during fiscal year 2001, was not in a state of financial emergency as defined by r Florida Statute, Section 218.503 (1). 3. Recommendations to improve the Village's present financial management and accounting procedures are accompanying this report in the schedule of findings. 4. Recommendations made in the preceding annual financial audit were addressed except as .. reported in the accompanying schedule of findings. A 5. The Village is in compliance with the investment policy of public funds established by Section 218.415 of the Florida statutes. r T -75- One Southeast Third Avenue, Tenth Floor, Miami, Florida 33131 • Tel 305-377-4228 • Fax 305-377-8331 Offices in: Miami • Ft. Lauderdale • West Palm Beach • Stuart www.rchcpa.com Member of Summit International Associates, Inc. with offices in principal cities throughout the world Member of the American Institute of Certified Public Accountants and member of the Florida Institute of Certified Public Accountants 1 I I I Fl I I r Honorable Mayor, Village Commission and Village Manager Village of Tequesta, Florida Page Two 6. During the course of our audit, nothing came to our attention that caused us to believe that the Village: a. Was in violation of any laws, rules or regulations and contractual provisions. b. Made any illegal or improper expenditures. c. Had improper or inadequate accounting procedures. d. Failed to record financial transactions which could have a material effect on the Village's general purpose financial statements. e. Had other inaccuracies, shortages, defalcations and instances of fraud. 7. The annual financial report for the year ended September 30, 2001 has been filed with the Department of Banking and Finance pursuant to Section 218.32(1)(a), Florida Statutes and is in agreement with the audited financial statements of the same period. 8. The Village was incorporated by Laws of Florida 57-1915. 9. During the course of our audit, we applied financial condition assessment procedures pursuant to Rule 10.566(8). It is management's responsibility to monitor the City's financial condition, and our financial assessment, which was performed as of the City's fiscal year end, was based on representations made by management and the review of financial information provided by the City. There were no findings regarding deteriorating financial conditions. This report is intended for the information of the Mayor, Village Commission, management, and the Auditor General of the State of Florida and is not intended to be and should not be used by anyone other than those specified parties. However, this report is a matter of public record and its distribution is not limited. �aril�xr Cow �.�'o��r.P Fort Lauderdale, Florida April 18, 2002 -76- I r I L u I I VILLAGE OF TEQUESTA, FLORIDA SCHEDULE OF FINDINGS FISCAL YEAR ENDED SEPTEMBER 30, 2001 SECTION I. PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND STATUS Reportable Conditions 00-1 Staffing in the Finance Department The Village implemented this recommendation. 00-2 Segregation of Ditties The Village implemented this recommendation. 00-3 Cask/Bank Reconciliation This comment was repeated as of September 30, 2001 (see Schedule of Findings and Questioned Costs #00-3). 00-4 Investments The Village implemented this recommendation. 00-5 Fixed Assets ff The comment was repeated as of September 30, 2001 (see Schedule of Findings and Questioned Costs #00-5). 00-6 Utility Billing System The Village implemented this recommendation. 00-7 Purchase Orders/Encuinbrances I The Village implemented this recommendation. 00-8 Accounts Receivable and Customer Deposits The Village implemented this recommendation. r00-9 Accounts Payable This comment was repeated as of September 30, 2001 (see Schedule of Findings and Questioned Costs #00-9). -77- 1 1 1 1 n VILLAGE OF TEQUESTA, FLORIDA SCHEDULE OF FINDINGS (Continued) SECTION I. PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND STATUS (Continued) 00-10 Tracking of Voided Checks The Village implemented this recommendation. 00-11 Pension Accounting This comment was repeated as of September 30, 2001 (see Schedule of Findings and Questioned Costs #00-11). 00-12Responsibility for Grant Compliance The Village implemented this recommendation. j00-13Revenues 1 The Village implemented this recommendation. 00-14 Cash Management The Village implemented this recommendation. 00-1 S Series 1998 Bonds The Village implemented this recommendation. 00-16 Village Capital Projects The Village implemented this recommendation. 00-171i:terfund Transfers The Village implemented this recommendation. 00-18 Journal Entries The Village implemented this recommendation. 00-19Automated Collection Procedures r" The Village implemented this recommendation. 00-20 Other The Village implemented this recommendation. -78- I j r-� VILLAGE OF TEQUESTA, FLORIDA SCHEDULE OF FINDINGS (Continued) SECTION I. PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND STATUS (Continued) 00-3 Cash/Bank Reconciliations Bank reconciliations are an important internal control to be used by management to ensure that all cash transactions are recorded in the accounting records and to safeguard assets from loss or misuses. To be effective, the reconciliations need to be prepared on a timely basis with reconciling items being investigated and resolved. During fiscal year ended September 30, 2001, bank reconciliations for some of the cash accounts were not prepared until after fiscal year end and unreconciled differences were not properly investigated and resolved. The bank reconciliations are not reviewed by supervisory personnel of the finance department. Recommendation We recommend that bank reconciliations be prepared on a monthly basis and that unreconciled differences be investigated and resolved. We also recommend that all reconciliations be reviewed by supervisory personnel for accuracy. Management Response At the present time, all bank reconciliations are being prepared by a senior accountant and reviewed by the appropriate supervisory personnel and all adjustments are being posted in a timely manner. General ledger cash balances to bank balances are being reviewed on a daily basis. All reconciling items related to prior periods have been resolved. 00-5 Proprietary Fund Fixed Assets Fixed assets acquisitions of the proprietary funds were recorded to expense (capital outlay) accounts and year end entries were necessary to properly capitalize these fixed assets. Accounting personnel were not trained on the fixed assets program. The fixed asset accounting module had not been fully updated to reflect the correct ending fixed asset balances and related depreciation. Recommendation We recommend the Village capitalize fixed assets used for proprietary activities and reconcile fixed asset transfers between funds. Management Response 1� The Village was unable to upgrade the fixed asset program until the software manufacturer completed the upgrade. When the Village received the upgrade in January 2002, it was installed and staff received in-house training. The staff will receive additional training as it becomes necessary and available. r f -79- I I I T VILLAGE OF TEQUESTA, FLORIDA SCHEDULE OF FINDINGS (Continued) SECTION I. PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND STATUS (Continued) 00-9 Accounts Payable We noted that invoices are not entered into the accounts payable module when received. The accounts payable module is not used except when the Village pays invoices. Bills/invoices are entered on one day and the invoices are paid the following day. As a result, common reports such as an accounts payable aging ledger are unusable. Without entering invoices into the accounts payable module, invoices could be paid late or not paid at all and not be detected by finance personnel. Recommendation The Village should enter invoices into the accounts payable module when received and utilize the accounts payable module to manage payables and cash flow. f r F r Management Response At year end, accounts payable is processed every two weeks and all approved invoices are entered and paid. Prior to all accounts payable runs, the A/P clerk informs the senior accountant of the amount needed to pay all invoices and the senior accountant wires the required cash into the proper bank accounts. With the exception of the days when payroll is processed, invoices are entered on a daily basis. 00-11 Pension Accounting/Funding We noted that information supplied to the actuary was not correct. Reconciliations between brokerage statements and the Village's internal records were not performed until after fiscal year. Also, employee pension contributions were not always made timely. Recommendation We recommend the Village record all pension transactions timely and perform reconciliations for all pension transactions at the end of each month. Employee contributions should be made timely. Management Response The current staff identified mistakes that were made by the brokerage firm when they separated the General Pension assets from the Police and Fire Pension assets. They noted that the assets were carried forward at fair market value which resulted in gains and losses inaccurately presented on the brokerage statements. The staff was unable to reconcile the statements until the brokerage firm corrected the mistake. The account was corrected and all reconciliations were completed prior to the end of the fieldwork. At year end, employee contributions are made timely along with the bi-weekly payroll. r I I I I I I I I 11 VILLAGE OF TEQUESTA, FLORIDA r SCHEDULE OF FINDINGS (Continued) SECTION II — CURRENT YEAR FINANCIAL STATEMENT FINDINGS REPORTABLE CONDITIONS 01-1 Preparation of Books and Records The Village's books and records were not closed and available for audit in a timely manner after fiscal year end. Prudent business practice would dictate that the books and records be closed within a timely period after each month as well as after fiscal year end (i.e. no later than 90 days after fiscal year end). Numerous adjustments were posted to the accounting records during the audit and these adjustments were necessary in order to fairly present the financial statements. Many of the adjustments were a result of not performing timely reconciliations during the year. Recommendation We recommend that the Village examine the monthly general ledger activity in order to ensure that the balances appear reasonable based on activities that occurred during the month. This will allow the Village to monitor and correct transactions closer to when they occur. This would also reduce the amount of year end reconciliation and would enable the Village close their books and records at fiscal year end in a timely manner. Management Response The auditors were made aware when the were engaged that none of the current staff had been employed by the Village for the entire year being audited. It was also explained in subsequent discussions that the current staff would need additional time to close the books as they had to locate missing records and correct many mistakes. With the present staff on board for an entire period, it is the Village's intention to close the books and records on a more timely basis to ensure a timely audit for the year ending September 30, 2002. 01-2 Payroll The payroll per the Employee Earnings Report did not reconcile to the general ledger for fiscal year end September 30, 2001. The Village has also received Internal Revenue Service (IRS) notices related to various payroll matters including not making payroll tax payments timely, differences in reported amounts to the IRS and Social Security Administration and in the amount paid. These matters related to previous staff. These personnel are no longer employed by the Village. Recommendation We recommend that the Village reconcile the employee earnings report to the general ledger after each payroll is issued. This will eliminate the need to reconcile payroll to the general ledger at fiscal year end. -81- F1 VILLAGE OF TEQUESTA, FLORIDA SCHEDULE OF FINDINGS (Continued) SECTION II — CURRENT YEAR FINANCIAL STATEMENT FINDINGS (Continued) REPORTABLE CONDITIONS (Continued) 01-2 Payroll (Continued) Management Response In November 2001, we received the Windows® version of payroll, installed it and sent staff to training on it. This version will link to the general ledger when we receive the upgrade to the "betrieve" system now running. We are waiting for server specifications from the software manufacturer to determine if our present server will be able to handle the newer "pervasive" software. This new software will allow us to implement controls that are not available to us at this time. 01-3 Check Sequencing of Payroll Checks Based on our review of the payroll checks listing, we noted that the checks were not numerically sequenced and the missing checks could not be located. For example, checks numbered 2650 to 2721, a group of 71 checks, could not be located or accounted for. It did not appear that the missing check numbers cleared on subsequent bank statements. In addition, payroll checks that were recorded in the general ledger did not always match the check -. number on the issued check. Recommendation { In order to properly safeguard the Village's assets from loss or misuse, the Village should ensure that all checks are properly sequenced and accounted for, and that each check number issued be properly r recorded in the general ledger. Management Response No discrepancies in check sequences were noted after April 2001. The new staff corrected the problems and no fraud or irregularities were detected. 01-4 Accounting Policies The Village does not have an accounting manual that sets out its policies and procedures. In order to ensure that all responsibilities of each finance position are delineated and that accounting procedures are performed on a timely basis, we recommend that an accounting manual be prepared. The manual should cover all procedures that need to be performed on a periodic basis including, but not limited to, month end procedures such as bank reconciliations, general ledger account analysis, approval of journal entries, etc. r F -82- C� I VILLAGE OF TEQUESTA, FLORIDA SCHEDULE OF FINDINGS (Continued) SECTION II — CURRENT YEAR FINANCIAL STATEMENT FINDINGS (Continued) REPORTABLE CONDITIONS (Continued) '— 01-4 Accounting Policies (Continued) Recommendation A comprehensive review of the Village's existing accounting procedures, accompanied by the creation of an accounting procedures manual will ensure consistent treatment for similar transactions and the application of appropriate accounting principles, as well as aid in the training of new employees. In addition, in the event that regular full-time staff are absent, the presence of such a manual could enable the Village to continue processing transactions without major interruption. One of the advantages of developing an accounting manual is that, in the course of its creation, management may find itself reexamining workflow processes and take advantage of the opportunity to re -engineer these work processes. Management Response Management agrees that the Village needs to develop an accounting procedures manual during the next year. We have begun a finance department procedures manual and hope to incorporate these procedures into a more comprehensive accounting procedures manual. 01-5 New Pronouncement Government Accounting Standards Board Statement No. 34, Basic Financial Statements — and Managernent's Discussion and Analysis —for State and Local Governments, establishes new financial reporting requirements for state and local governments throughout the United States. When implemented, it will create new information and will restructure much of the information that governments have presented in the past. These new requirements were developed to make annual �. financial reports more comprehensive and easier to understand and use. The new reporting model will include government -wide financial statements, as well as fund financial statements, as well as management's discussion and analysis section. Implementation will be required for fiscal year ending September 30, 2003. However, many of the reporting requirements need to be addressed several years before the required implementation date. Recommendation We recommend that the Village review the new requirements and create an action for the implementation of this new standard. Management Response The Village is aware of the new requirements and will be discussing the implementation with the present auditing firm. M F I 1 VILLAGE OF TEQUESTA, FLORIDA SCHEDULE OF FINDINGS (Continued) SECTION II — CURRENT YEAR FINANCIAL STATEMENT FINDINGS (Continued) REPORTABLE CONDITIONS (Continued) 01-6 Arbitrage Monitoring The Village is required to calculate annually whether or not an arbitrage liability exists at the end of the fiscal year unless clearly inconsequential, any arbitrage rebate amounts due on the Series 1998 Water Revenue Bonds are payable no later than May 1, 2003. Recommendation The Village should engage a firm to compute the arbitrage rebate calculation and determine whether any rebate liability exists. Management Response Management will be engaging a firm to compute the arbitrage rebate calculation. -84- Ll I I I No Text No Text