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Pat Watkins,
Mayor
Calvin Turnquest,
Vice Mayor
Tom Paterno,
Council Member
Vince Arena,
Council Member
James Humpage,
Council Member
VILLAGE OF TEQUESTA, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30,2008
.Prepared By
Finance Department
The Village of Tequesta, Florida
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VILLAGE OF TEQUESTA, ii LORIDA
TABLE OF CONTENTS
I. INTRODUCTORY SECTION
PAGE
Letter of Transmittal i -v
Certificate of Achievement for Excellence in Financial Reporting A
Organization Chart vii
List of Principal Officials viii
II. FINANCIAL, SECTION
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS 1-2
MANAGEMENT'S DISCUSSION AND ANALYSIS 3-15
BASIC FINANCIAL STATEMENTS:
Government -Wide Financial Statements:
Statement of Net Assets
16
Statement of Activities
17
Fund Financial Statements:
Balance Sheet — Governmental Funds
18
Statement of Revenues, Expenditures and Changes in Fund Balances —
19
Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities
20
Statement of Net Assets — Proprietary Funds
21
Statement of Revenues, Expenses and Changes in Net Assets — Proprietary Funds
22
Statement of Cash Flows — Proprietary Funds
23
Statement of Fiduciary Net Assets — Fiduciary Funds
24
Statement of Changes in Fiduciary Net Assets — Fiduciary Funds
25
Notes to Basic Financial Statements
26-55
REQUIRED SUPPLEMENTARY INFORMATION (Other than MD&A):
Budgetary Comparison Schedule — General Fund 56
Note to Budgetary Comparison Schedule 57
Schedule of Employer Contributions 58
Schedule of Funding Progress 59
VILLAGE OF TEQUESTA, FLORIDA
TABLE OF CONTENTS
(Continued)
PAGE
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet—Nonmajor Governmental Funds
60
Combining Statement of Revenues, Expenditures and Changes in Fund Balances --
72_73
Nonmajor Governmental Funds
61
Budgetary Comparison Schedule — Special Revenue Fund
C2
Budgetary Comparison Schedule — Special Law Enforcement Trust Fund
63
Budgetary Comparison Schedule — Capital Improvement Fund
64
Budgetary Comparison Schedule — Capital Projects Fund
65
Combining Statement of Net Assets — Nonmajor Enterprise Funds
66
Combining Statement of Revenues, Expenses and Changes in Net Assets —
80
Nonmajor Enterprise Funds
67
Combining Statement of Cash Flows — Nonmajor Enterprise Funds
68
Combining Statement of Fiduciary Net Assets
69
Combining Statement of Changes in Fiduciary Assets
70
III. STATISTICAL SECTION
Net Assets by Component — Last Six Fiscal Years
71
Changes in Net Assets — Last Six Fiscal Years
72_73
Program Revenues by Function/Program — Last Six Fiscal Years
74
Fund Balances, Governmental Funds — Last Ten Fiscal Years
75
Changes in Fund Balances, Governmental Funds — Last Ten Fiscal Years
76
Tax Revenues by Source, Governmental Funds — Last Six Fiscal Years
77
Revenues from Sales and Use Taxes by Category — Last Six Fiscal Years
78
Assessed and Estimated Actual Value of Taxable Property — Last Ten Fiscal Years
79
Property Tax Rates — All Direct and Overlapping Governments — Last Ten Fiscal Years
80
Principal Property Taxpayers — Current Year and Nine Years Ago
81
Property Tax Levies and Collections (Unaudited) — Last Ten Fiscal Years
82
Second Tier Capacity — Other Taxes by Category — Last Ten Fiscal Years
83
Ratios of Outstanding Debt by Type — Last Ten Fiscal Years
84
Ratio of Net Outstanding Debt to Assessed Value and Net Bonded Debt Per Capita (Unaudited) —
Last Ten Fiscal Years
85
Computation of Legal Debt Margin
86
Direct and Overlapping Governmental Activities Debt
87
Pledged -Revenue Coverage — Last Ten Fiscal Years
88
Demographic and Economic Statistics — Last Ten Fiscal Years
89
Full -time -Equivalent Village Government Employees by Function/Program —
Last Seven Fiscal Years
90
Operating Indicators by Function/Program — Current Fiscal Year
91
Capital Asset Statistics by Function/Program — Current Fiscal Year
92
VILLAGE OF TEQUESTA, FLORIDA
TABLE OF CONTENTS
(Continued)
IV. COMPLIANCE SECTION
PAGE
Report of Independent Certified Public Accountants on Compliance and on Internal
Control over Financial Reporting and on Compliance and Other Matters based on an Audit
of Financial Statements Performed in Accordance with Government Auditing Standards 93-94
Management Letter in Accordance with the Rules of the Auditor General of the
State of Florida 95-96
Schedule of Findings and Responses 97-99
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PROFILE OF THE GOVERNMENT
The Village of Tequesta was incorporated June 4, 1957 and has a Council -Manager form of
government.
All powers of the Village are vested in an elected governing body of the Village consisting of a
five member Village Council responsible for enacting ordinances, resolutions and regulations
governing the Village, adopting budgets, determining policies, as well as appointing the members
of various advisory boards and the Village Manager. The Village Manager executes the laws and
administers the government as well as attends to the day-to-day affairs of the Village.
The Village of Tequesta provides a full range of services, including police and fire protection; the
construction and maintenance of streets and other infrastructure; recreational and cultural
activities; water and stormwater utilities and contracts for sanitation services.
The annual budget serves as the foundation for the Village of Tequesta's financial planning and
control. The Village departments meet with and submit their plans and needs for the coming year
to the finance department, which compiles a proposed budget. The Village Manager reviews and
then submits the Manager's recommended budget to the Village Council. The Village Council
reviews the budget, holds workshops for discussion on the budget and subsequently holds two
public hearings to obtain citizen input and make changes prior to adoption of the budget. Finally,
prior to October ls`, the Village Council adopts the approved budget along with an ordinance
establishing the property tax rate (millage) required to fund the budget. Department heads
recommend transfers of budgeted amounts within their department, which require approval of the
Village Manager. All transfers greater than $5,000, capital items or transfers between funds are
reported to the governing council. Supplemental appropriations require the special approval of
the governing council. Budget -to -actual comparisons are provided in this report for each
individual governmental fund for which an appropriated annual budget has been adopted.
FACTORS AFFECTING FINANCIAL CONDITION
The information presented in the financial statements is perhaps best understood when it is
considered from the broader perspective of the specific environment within which the Village of
Tequesta operates
Local Economy
The Village is located at the extreme northeastern quadrant of Palm Beach County. Tequesta is a
relatively affluent residential community with adequate commercial facilities necessary to
provide goods and services to its residents. Northern Palm Beach County ranks as one of the top
growth areas in the country. Tequesta's growth potential is restricted by the natural boundaries of
the Atlantic Ocean to the east, the Loxahatchee River to the west, the Town of Jupiter to the south
and Martin County to the north.
ii
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Long -Term Financial Planning
The Village of Tequesta's primary focus related to economic growth is the rebuilding and
improving of existing commercial and residential property. The Village has a five-year capital
improvement plan to continue to maintain and enhance existing roadways, parks and recreational
facilities to encourage the improvement of these properties.
Unreserved, undesignated fund balance in the general fund falls within the policy guidelines
targeted by the Council for budgetary and planning purposes (i.e., 20% of total general fund
expenditures).
MAJOR INITIATIVES
• Review the Village's investment policies and strategies to more effectively protect the
Village's assets in the current economical environment.
• Continue to explore alternative revenue sources, at both the state and federal level, with
the assistance of a professional lobbyist
• Continue to explore annexation of contiguous properties in unincorporated Palm Beach
County.
• Continue to evaluate capital and operational needs within the Village to ensure a high-
level service delivery in an efficient and economical manner.
• Continue to evaluate and implement contemporary policies and procedures to ensure the
efficient and economical operation of the Village of Tequesta.
Cash Management
The Village of Tequesta maintains two pooled cash accounts, the general investment account and
the water enterprise investment account. The finance department monitors cash requirements and
the finance director approves temporary idle cash for investment into these accounts. The
investment policy of the Village is to maximize its investments in high quality, risk-free securities
authorized by State statutes, while maintaining a competitive yield on its portfolio.
Tequesta's investments for the current year consisted of deposits with the State Board of
Administration (SBA) — Local Government Surplus Funds Trust Fund Investment Pool (LGIP
and Fund B), In the beginning of the 2008 fiscal year, the Village held investments in the LGIP
which consisted of obligations of the U.S. Treasury and its agencies, money market securities
such as commercial paper, banker's acceptance, corporate notes and repurchase agreements. On
November 29, 2007 the State Board of Administration implemented a temporary freeze on the
assets held in the Pool due to an unprecedented amount of withdrawals from the Fund coupled
with the absence of market liquidity for certain securities within the Pool. The significant amount
of withdrawals followed reports that the Pool held asset-backed commercial paper that was
subject to subprime mortgage risk. On December 3, 2007, based upon recommendations from
iii
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B1ackRock, an independent investment advisor, the State Board of Administration restructured
the Pool into two separate pools. Pool A (LGIP) consisted of top -tier money market assets of the
highest quality, while Pool B contained assets that either defaulted on a payment, paid more
slowly than expected or had significant credit or liquidity risk. As funds become available in
Pool B, they are transferred to Pool A for distribution. At September 30, 2008, the Village had
$3,510,270 and $672,560 invested in Governmental Activities and Business -type Activities,
respectively. Subsequently, by the date of this letter, the Village had reduced its investments in
both LGIP and Pool B to $332,626 and $253,357 respectively and moved these funds into various
cash and cash equivalents (i.e. checking accounts, money market accounts, short-term certificates
of deposits, etc.). Additional information regarding the Local Government Surplus Funds Trust
Fund may be obtained from the State Board of Administration.
Risk Management
During 2008, Tequesta continued to use third -party insurance coverage for its Risk Management
Program.
Pension Benefits
The Village maintains 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 Plans were
amended, establishing a separate plan for public safety officers (firefighters and police officers)
and a separate plan for general employees. The retirement system was established by the Village
and is administered by two separate Boards of Trustees (public safety officers and general
employees). The retirement system receives contributions that may not be used to pay the
benefits of all employee classes. Due to this restriction, for financial statement purposes, three
separate plans are shown as pension trust funds. The Village Employees' Retirement System
administers the following plans: The Firefighters' Pension Trust Fund (FPTF), The Police
Officers' Pension Trust (PPTF) and the General Employees' Pension Trust Fund (GPTF). The
Firefighters' Pension Trust Fund and the Police Officers' Pension Trust financial statements are
included in the financial statements of the Village as pension trust funds.
AWARDS AND ACKNOWLEDGEMENTS
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to Tequesta for its comprehensive annual financial report for
the fiscal year ended September 30, 2007. This was the twenty-fourth consecutive year that
Tequesta has received this prestigious award. In order to be awarded a Certificate of
Achievement, Tequesta had to publish an easily readable and efficiently organized
comprehensive annual financial report. This Report satisfied both generally accepted accounting
principles and applicable legal requirements.
1v
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A Certificate of Achievement is valid for a period of one year. We believe that our current
comprehensive annual financial report will continue to meet the Certificate of Achievement
Program's requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
The preparation of this report would not have been possible without the efficient and dedicated
services of the entire staff of the finance department. We would like to express our appreciation
to all members of the department who assisted and contributed to the preparation of this report.
In closing, we must also acknowledge the Mayor and Council for their unfailing support for
maintaining the highest standards of professionalism in the management of the Village of
Tequesta's finances.
Respectfully submitted,
G
Michael R. Couzzo,\k
Village Manager e
v
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JoAtii� Forsythe, CPA
Finance Director
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Village of Tequesta
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2007
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
,cE ofy
OF
u7 STATES y
President
1kuAw
Executive Director
-vi-
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VILLAGE OF TEQUESTA, FLORIDA
ORGANIZATION CHART
SEPTEMBER 30 2008
VILLAGE OF TEQUESTA, FLORIDA
LIST OF PRINCIPAL OFFICIALS
SEPTEMBER 30, 2008
VILLAGE COUNCIL 2007-2008
Patricia Watkins
Calvin Turnquest
Vince Arena
James Humpage
Thomas Paterno
Michael R. Couzzo, Jr.
Trela White
(Corbett & White.PA)
Lori McWilliams
JoAnn Forsythe, CPA
James M. Weinand
William McCollom
Catherine Harding
Russell White
Michael R. Couzzo, Jr.
Gregg Corbitt
Mayor
Vice -Mayor
Councilmember
Councilmember
Councilmember
VILLAGE OFFICIALS
Village Manager
Village Attorney
Village Clerk
Finance Director
Fire Chief
Police Chief
Director of Community Development
Public Services Manager
Director of Utilities
Director of Parks and Recreation
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Rachlin LLP
Accountants & Advisors
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REPORT OF INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANTS
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Rachlin
accountants - advisors
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, each major fund, and the aggregate remaining fund information of the Village of Tequesta,
Florida (the Village) as of and for the year ended September 30, 2008, which collectively comprise the
Village's basic financial statements, as listed in the table of contents. These financial statements are the
responsibility of the Village's management. Our responsibility is to express opinions on these basic
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material misstatement. An
audit includes consideration of internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the Village's internal control over fmancial reporting. Accordingly, we express no
such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the governmental activities, the business -type activities, each major fund, and the
aggregate remaining fund information of the Village of Tequesta, Florida as of September 30, 2008 and
the respective changes in financial position and cash flows, where applicable, thereof for the year then
ended in conformity with accounting principles generally accepted in the United States.
In accordance with Government Auditing Standards, we have also issued a report dated February 27,
2009 on our consideration of the Village's internal control over financial reporting and our tests of its
compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the internal
control over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be read in conjunction with the report in
considering the results of our audit.
■ ■■
Rachlin LLP ■ 777 South Flagler Drive ■ Suite 150 ■ West Palm Beach, Florida 33401 ■ Phone 561.833.0002 ■ Fax 561.833.3235 ■ wNw.rachlin.co m
An Independent Member of Baker Tilly International
M I A M I ■ F 0 R T L A U D E R D A L E ■ IN E S T P A L M B E A C H
Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
Page Two
Management's Discussion and Analysis and the Required Supplementary Information on pages 3 to 15
and pages 58 to 60, respectively, are not a required part of the basic financial statements but are
supplementary information required by accounting principles generally accepted in the United States. We
have applied certain limited procedures, which consisted principally of inquiries of management
regarding the methods of measurement and presentation of the required supplementary information.
However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Village's basic financial statements. The introductory section, combining and individual
fund statements and schedules and statistical tables are presented for purposes of additional analysis and
are not a required part of the basic financial statements. The combining and individual fund statements
and schedules, have been subjected to the auditing procedures applied in the audit of the basic financial
statements and in our opinion, is fairly stated in all material respects in relation to the basic financial
statements taken as a whole. The information identified in the table of contents as the Introductory and
Statistical Sections have not been subjected to the auditing procedures applied in the audit of the basic
financial statements, and, accordingly, we express no opinion thereon.
West Palm Beach, Florida
February 27, 2009
-2-
Rachlin
accountants•advisors
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MANAGEMENT'S DISCUSSION AND ANALYSIS
(MD&A)
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Village of Tequesta, Florida
Management's Discussion and Analysis
As management of the Village of Tequesta, we offer readers of the Village's financial statement this
narrative overview and analysis of the financial activities of the Village for the fiscal year ended
September 30, 2008. We encourage readers to consider the information presented here in conjunction
with the additional information that we have famished in the letter of transmittal found on pages i to v
of this report.
Financial Hiahlights
• The assets of the Village of Tequesta exceeded its liabilities at the close of the most recent
fiscal year by $31 million (net assets). .
♦ This is an increase of $971,463 (3.2%) from the prior year.
♦ $10 million is unrestricted net assets and may be used to meet the ongoing
obligations to the citizens and creditors.
• While total net assets increased from the prior year, net assets of the Business -type activities
decreased $223,772.
• Total general revenues decreased $1,473,772 (15%).
• As of the close of the current fiscal year, the Village's governmental funds reported combined
ending fund balances of $6.47 million, an increase of $949,964 from the prior period.
• At the end of the current fiscal year, unreserved, undesignated fund balance for the General
fund was $4.18 million, an increase of $759,067 from the prior period.
• The Village's total long -term -debt decreased by $1.1 million (9.0%) during the current fiscal
year. Please see, Notes to Basic Financial Statements, Note 9 on page 40.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Village of Tequesta's basic
financial statements. The Village's basic financial statements consist of three components: 1)
government -wide financial statements, 2) fund financial statements, and 3) notes to the financial
statements. In addition to these basic financial statements, this report contains other supplementary
information.
Government -wide financial statements: The government -wide financial statements are designed to
provide readers with a broad overview of the Village's finances, in a manner similar to a private -
sector business.
The statement of net assets presents information on all of the Village's assets and liabilities, with the
difference between the two reported as net assets. Over time, increases or decreases in net assets may
serve as a useful indicator of whether the financial position of the Village is improving or
deteriorating.
The statement of activities presents information showing how the Village's net assets changed during
the most recent fiscal :year. All changes in net assets are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will result in cash flows in future fiscal
periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government -wide financial statements distinguish functions of the Village that are
principally supported by taxes and intergovernmental revenues (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business -type activities). The governmental activities of the Village included general
government, public safety, transportation and leisure services. The business -type activities of the
Village included water, stormwater and refuse and recycling.
The government -wide financial statements can be found on pages 16-17 of this report.
Fund financial statements: A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The Village, like other
state and local governments, uses fund accounting to ensure and demonstrate compliance with
finance -related legal requirements. All of the funds of the Village can be divided into three
categories: governmental funds, proprietary funds and fiduciary funds.
Governmental fund:. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government -wide financial statements. However, unlike
the government -wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, as well as on balances of spendable resources available
at the end of the fiscal year. Such information may be useful in evaluating the Village's near term
financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide financial statements. By
doing so, readers may better understand the long-term impact of the Village's near-term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of
revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
The Village maintains five individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures,
and changes in fund balances for the General, Special Revenue, Special Law Enforcement, Capital
Projects and Capital Improvement funds. The General fund is considered to be the only major fund in
fiscal year ending September 30, 2008. Data from the other four governmental funds is combined
into a single, aggregated presentation. Individual fund data for each of these non -major governmental
funds is provided in the form of combining statements elsewhere in this report.
M
The Village adopts an annual appropriated budget for its General Fund. A budgetary comparison
statement has been provided for the General Fund to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 18-20 of this report.
Proprietary fund: The Village maintains one type of proprietary fund. Enterprise funds are used to
report the same functions presented as business -type activities in the government -wide financial
statements. The Village uses enterprise funds to account for its water, stormwater and refuse and
recycling activities.
Proprietary funds provide the same type of information as the government -wide financial statements,
only in more detail. The proprietary fund financial statements provide separate information for the
Water Utility. Stormwater Utility and Refuse and Recycling funds are combined into a single,
aggregated presentation.
The basic proprietary fund financial statements can be found on pages 21-23 of this report.
Fiduciary funds: Fiduciary funds are used to account for resources held for the benefit of parties
outside the Village. Fiduciary funds are not reflected in the government -wide financial statement
because the resources of those funds are not available to support the Village's own programs. The
accounting used for fiduciary funds is much like that used for proprietary funds.
The basic fiduciary fiord financial statements can be found on pages 24-25 of this report.
Notes to the basic financial statements: The notes provide additional information that is essential to
a full understanding of the data provided in the government -wide and fund financial statements. The
notes to the basic financial statements can be found on pages 26-55 of this report.
Other information: In addition to the basic financial statements and accompanying notes, this report
also presents certain required supplementary information concerning the Village of Tequesta's
progress in funding its obligation to provide pension benefits to its employees. Required
supplementary information can be found on pages 56-59 of this report.
The combining statements referred to earlier in connection with non -major governmental funds, as
well as, non -major enterprise funds and fiduciary funds are presented immediately following the
required supplementary information. Combining and individual fund statements and schedules can be
found on pages 60-70 of this report.
Statistical Section: Twenty-one statistical tables are presented in compliance with GASB Statement
44, Economic Condition Reporting: The Statistical Section, under the following 5 categories:
Financial Trends, Revenue Capacity, Debt Capacity, Demographic and Economic Information and
Operating Information. The tables can be found on pages 71-92 of this report.
Government -wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of the Village's financial
position. In the case of the Village of Tequesta, total assets exceeded liabilities by $31 million at the
close of the most recent fiscal year.
5
The largest portion of the Village's net assets (67.7%) represents investment in capital assets (e.g.,
land, buildings, machinery and equipment), less any related outstanding debt used to acquire those
assets. The Village uses these capital assets to provide services to citizens; consequently, they are not
available for future spending. Although the Village's investment in its capital assets is reported net of
related debt, it should be noted that the resources needed to repay this debt must be provided from
other sources since the capital assets themselves cannot be used to liquidate these liabilities.
Current and other assets $7,652,930 $7,012,839 $3,935,410 $4,574,156 $11,588,340 $11,586,995
Capital assets, net
$11,102,638
$11,501,149
$20,575,459
$21,539,346
$31,678,097
$33,040,495
Total assets
$18,755,568
$18,513,988
$24,510,869
$26,113,502
$43,266,437
$44,627,490
Liabilities
Current liabilities and payables
$763,394
$1,136,592
$205,734
$1,051,152
$969,128
$2,187,744
Long-term liabilities
$4,573,320
$5,153,777
$6,640,634
$7,174,077
$11,213,954
$12,327,854
Total liabilities
$5,336,714
$6,290,369
$6,846,368
$8,225,229
$12,183,082
$14,515,598
Net assets
Invested in capital assets,
net of related debt
$6,959,332
$6,679,855
$14,082,987
$14,513,500
$21,042,319
$21,193,355
Restricted for debt service
$140,990
$136,019
$277,009
Restricted for Renew & Rep.
$192,525
$192,525
Unrestricted
$6,459,522
$5,402,774
$3,581,514
$3,046,229
$10,041,035
$8,449,003
Total net assets
$13,418,854
$12,223,619
$17,664,501
$17,888,273
$31,083,354
$30,111,892
The remaining unrestricted net asset balance of $10 million (32.3 %) may be used to meet the
Village's ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the Village of Tequesta is able to report positive balances in all
three categories of net assets, both for the government as a whole, as well as for its separate
governmental and business -type activities. The same situation held true for the prior fiscal year.
The government's total net assets increased $971,463 (3.2%) during the year. This increase
demonstrates the degree in which increases in ongoing revenues have outpaced increases in ongoing
expenses. It should be noted that the increase in net assets in the prior period was 10.6%
R,
Governmental activities: Governmental activities (excluding transfers) increased the Village of
Tequesta's net assets by $1,074,635 accounting for 100% of the total increase in net assets of the
Village and offsetting the decrease in net assets in the business -type activities. Key elements of this
increase follows:
7
Revenues:
Program Revenues:
Charges for Services
$1,388,866
$1,339,526
$4,165,733
$4,439,698
$5,554,599
$5,779,224
Operating Grants & Contributions
18,711
20,350
7,827
$18,711
$28,177
Capital Grants & Contributions
57,736
54,764
430,000
$57,736
$484,764
General Revenues:
Property Taxes
5,661,200
6,139,007
5,661,200
6,139,007
Other Taxes
1,123,272
1,157,128
1,123,272
1,157,128
Franchise fees based on gross
receipts
462,296
477,711
462,296
477,711
Intergovernmental
783,034
815,828
783,034
815,828
Unrestricted investment earnings
152,602
404,816
86,811
321,718
152,602
726,534
Other Miscellaneous
37,621
106,647
39,955
397,708
37,621
504,355
Total Revenue
9,685,338
10,515,777
4,292,499
5,596,951
13,851,071
16,112,728
Expenses:
General government
1,344,038
1,391,654
1,344,038
1,391,654
Public safety
5,784,245
5,634,834
5,784,245
5,634,834
Transportation
736,844
766,226
736,844
766,226
Leisure Services
539,450
559,583
539,450
559,583
Interest of long-term debt
206,126
229,074
227,065
375,376
227,065
604,450
Water utility services
3,533,362 1
3,764,408
3,533,362
3,764,408
Stormwater services
215,163
188,708
215,163
188,708
Refuse & recycling services
420,081
306,348
420,081
306,348
Total Expenses
8,610,703
8,581,371
4,395,671
4,634,840
13,006,374
13,216,211
Change in net assets,
before transfers
1,074,635
1,934,406
-103,172
962,111
971,463
2,763,702
Transfers and contributions:
120,600
60,300
-120,600
-60,300
-
-
Change in net assets
1,195,235
1,994,706
-223,772
901,811
971,463
2,896,517
Net assets- beginning 10/01
12,223,619
10,228,913
17,888,273
16,986,462
30,111,892
27,215,375
Net assets - ending 9/30
13,418,854
12,223,619
17,664,501
17,888,273
31,083,355
30,111,892
7
Government -type activities continued:
• Property taxes decreased $477,807 (-8.4%) due to decreases in the millage rate and the taxable
value of properties.
• Other tax revenues decreased $33,856 (-2.9%) mainly due to increased revenue from premium
insurance tax revenue. Water utility tax revenue decreased from the prior year due to a
decrease in water sales.
• Intergovernmental revenues decreased $32,794 (40%)
• Investment earnings decreased $252,214 (-62%).
• Revenue from charges for services increased $49,340 (3.8%) this increase was mainly
due to revenues generated by the general government function. This class of revenues
generated by the public safety and leisure services function decreased.
• Grant revenue from governmental activities was consistent with the prior period.
• Other miscellaneous revenues decreased $69,026 (-64.7%)
Expenses and Program Revenues - Governmental Activities
6,000.000
5,000,000
4,000,000 I
.000.000
I
2,000,000
i
1.000,000 q r_
i
General Transportation Public Safety
Government
Figure 1 ( ; .-7m ,)
Leisure Services
Interest on Long
Term Debt
The Village's programs/functions include General Government, Public Safety, Transportation and
Leisure Services. The net cost shows the extent to which the Village's general revenues support each
of the Village's programs. The cost of all governmental activities this year was $8,610,703. As
shown on the Statement of Activities, the functions directly benefiting from the programs generated
revenue of $1,465,313 towards this cost and the remaining cost of $7,145,390 (83%) was financed
through general revenues This represents a 3.5% decrease in the portion financed through general
revenues from prior year.
Revenues by Source - Governmental
Activities
Invest.
earnings Miscellaneous
1.61x. 0.4`x.
Franchise fees
4.8%
Figure 2
Grants &
ontributions
0.8`x.
In the chart above, revenue from ad valorem taxes has been combined with 'other taxes' to show the
percentage of revenue generated from all tax sources in fiscal year ending September 30, 2008.
Business -type activities: The net assets of business -type activities decreased $223,772 (4.3%) from
the prior year Operating expenses for business -type activities decreased $84,786, while operating
revenues decreased $711,793. The largest changes: Grant revenues declined $430.000 and
connection fees declined $359,902 from the prior year. Losses before transfers from business -type
activities was $103,172 ( the Water Utility recorded the largest loss of $184,096).
Expenses by Function - Business Type
Activities
5tnrrn.;,trr
Uh ity
i
l
r�
Figure 3
0
Revenues by Source - Business Type
Activities
Nli;i cli,i n.�ou>
Invczlmcnt l,•.,,
Ej,
I
1
Figure 4
Financial Analvsis of the Village's Funds
As noted earlier, the Village of Tequesta uses fund accounting to ensure and demonstrate compliance
with finance -related legal requirements.
Governmental funds: The focus of the Village's governmentalfinds is to provide information on
near-term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the Village's financing requirements. In particular, unreserved /und balance may serve as a
useful measure of the Village's net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, The Village of Tequesta's governmental funds reported
combined ending fund balances $6,470,598, an increase of $949,965 from the prior year.
Approximately 78% ($5,045,649) of the total amount of fund balances constitutes unreserved,
undesignated fund balance, which is available for spending at the government's discretion.
Designations reflect the Village's self-imposed limitations on the use of otherwise available current
financial resources. The Village has designated $1,000,000 (15.5%) of the fund balances for Disaster
Relief in the General Fund and $330,000 for Bridge Improvements in the Capital Improvement fund.
Reserved fund balance is the portion of a governmental fund's net assets that is not available for
appropriation. The Village reserved $94,948 (1.5%) of fund balances for inventories and
encumbrances.
The General Fund is the chief operating fund of the Village. At September 30, 2008, unreserved fund
balance of the general fund was $5,180,612 ( including designated funds). As a measure of the general
fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to
total fund expenditures. Unreserved, undesignated fund balance represents 61% of total general fund
expenditures, while total fund balance represents 76.2% of that same amount.
Compared to the prior fiscal year, total General Fund revenues decreased by $802,732 (-8.1%). Key
factors in this decrease are as follows:
• Decreases in property values and new construction resulting in a decrease in ad -valorem taxes
of $477,807 (-7.8%).
• Intergovernmental revenues (sales taxes, revenue sharing, etc.) decreased $32,794 (4.0%).
• Licenses and permits decreased $102,645 (-26%).
• Fines and forfeitures decreased $71,001 (-64%). A large part of the decrease was a $66,360
reduction in $12.50 traffic violation fund revenues.
10
These decreases were offset by the following increases in revenue
o Revenue from other taxes increased $55,749 (5.2%). Charges for services increased
$48,015 (9%). General government revenue increased 41.4% while Public safety
revenue decreased 14.2% from the prior year.
o One month of franchise fees ($44,270) was recorded in the General Fund and I 1
months were recorded in IBR fund which was closed in f/y/e 9/30/2009.
o The amount of General Fund revenue by type, their percent of the total and the
amount of change compared to last fiscal year are shown in the following schedule:
Revenues Sources
Property taxes
5,661,200
62.1%
477,807
-8%
6,139,007
Othertaxes
1,123,272
12.4%
55,749
5%
1,067,523
Intergovernmental
783,034
8.6%
32,794)
-4%
815,828
Franchise fees
44,270
0.5%
44,270
n/a
0
Charges for services
574,937
6.3%
48,015
9%
526,922
Intragovernmental
280,100
3.1%
6,950
3%
273,150
Grants & contributions
18,712
0.2%
16,922
-47%
35,634
Licenses and permits
299,059
3.3%
102,645)
-26%
401,704
Investment earnings
141,604
1.6%
235,606
-62%
377,210
Fines & forfeitures
40,079
0.4%
71,001
-64%
111,080
Rents & Royalties
103,627
1.1%
5,001
-5%
108,628
Miscellaneous
38,242
0.4%
(14,657)
-28%
52,899
Impact Fees
2,575
0.0%
1,283
-33%
3,858
Total Revenue
9,110,711
100%
802,732
-8%
9,913,443
„""Jo ,int Revenues by Source - General Fund
ra1 11110ts xmes j 11 Rents and rovalLcs
l.F, forlr_rtum'. �L14 �Misc04',, ous
L n.cu,cs and ��� Franthisc (c,,;
Granh 'a °i.
0 ,° t
Inli.ieoI InlII `11t<il
1
l ha r.� Iii „civic _
r
3.6 4
Property &
�'�� °�� Othcrlaxcs
7d.5
Figure 5
11
Expenditures in the General Fund are shown in the following schedule:
In fiscal year 2008, total General fund expenditures decreased by $500,479 (-5.56%) compared to the
prior year.
• All function with the exception of Public Safety reported decreases in expenditures.
Expenditures for the function of Public Safety increased $147,804 (2.79%) from the prior
year.
• In the prior year (2007) Police Operations purchased $343,116 of capital assets. In 2008
Police Operations purchased $73,592. The change of $269,524 represents 75% of the total
reduction in capital outlay within the General Fund for f/y/e 9/30/2008.
The Special Revenue fund had a total fund balance of $369,490 at 9/30/2008. The fund was created to
account for the Improvement Revenue Refunding Bond Series 1994. On June 20, 2008 the Village
paid the remaining balance of $259,846 in full. There were no early payment penalties and the Village
saved $8,295 in interest. Subsequently, in the following fiscal year, the IBR Special Revenue Fund
was closed and all remaining assets were transferred to the General Fund.
Ending fund balances for the Capital Projects fund is $391,257 and the Capital Improvement fund is
$425,006. These funds are designated for capital projects/improvements. Revenue into these funds are
from capital grants and transfers -in from other funds. During the year $330,000 was transferred into
the Capital Improvement fund from the General fund and designated for bridge improvements.
Proprietary funds: The Village's proprietary funds provide the same type of information found in
the government -wide financial statements, but in more detail.
At the end of the year, total net assets of the Water Utility were to $15,583,153: a decrease of
$184,096 (1.2%) from the prior year. Operating revenues decreased by $824,771 while operating
expenses decreased by $224,974. The Water utility reported an operating loss of $69,797. Grant
revenue declined $437,827, connection fees declined $359.902 and investment income declined
$204,129 lower than in the prior year. Other factors concerning the finances of this major fund have
already been addressed in the discussion of the Village's business -type activities.
12
Expenditures
General government
Public Safety
Transportation
Leisure services
Capital outlay
Debt service
1,220,238 16.70%
-150,910
-11.01%
1,371,148
5,439,202 56.70%
147,804
2.79%
5,291,398
692,552 9.70%
-43,884
-5.96%
736,436
467,740 8.30%
-28,027
-5.65%
495,767
172,579 2.80%
-360,124
-67.60%
532,703
1 503,033 5.80%
-65,338
-11.50%
568,371
Total expenditures
1 8,495,344 100%
-500,479
-5.56%
8,995,823
In fiscal year 2008, total General fund expenditures decreased by $500,479 (-5.56%) compared to the
prior year.
• All function with the exception of Public Safety reported decreases in expenditures.
Expenditures for the function of Public Safety increased $147,804 (2.79%) from the prior
year.
• In the prior year (2007) Police Operations purchased $343,116 of capital assets. In 2008
Police Operations purchased $73,592. The change of $269,524 represents 75% of the total
reduction in capital outlay within the General Fund for f/y/e 9/30/2008.
The Special Revenue fund had a total fund balance of $369,490 at 9/30/2008. The fund was created to
account for the Improvement Revenue Refunding Bond Series 1994. On June 20, 2008 the Village
paid the remaining balance of $259,846 in full. There were no early payment penalties and the Village
saved $8,295 in interest. Subsequently, in the following fiscal year, the IBR Special Revenue Fund
was closed and all remaining assets were transferred to the General Fund.
Ending fund balances for the Capital Projects fund is $391,257 and the Capital Improvement fund is
$425,006. These funds are designated for capital projects/improvements. Revenue into these funds are
from capital grants and transfers -in from other funds. During the year $330,000 was transferred into
the Capital Improvement fund from the General fund and designated for bridge improvements.
Proprietary funds: The Village's proprietary funds provide the same type of information found in
the government -wide financial statements, but in more detail.
At the end of the year, total net assets of the Water Utility were to $15,583,153: a decrease of
$184,096 (1.2%) from the prior year. Operating revenues decreased by $824,771 while operating
expenses decreased by $224,974. The Water utility reported an operating loss of $69,797. Grant
revenue declined $437,827, connection fees declined $359.902 and investment income declined
$204,129 lower than in the prior year. Other factors concerning the finances of this major fund have
already been addressed in the discussion of the Village's business -type activities.
12
General Fund Budzetary Highlights
Differences between the original budgeted expenditures and the final amended budget can be briefly
summarized as follows:
• Approximately $67,466 was originally budgeted in `allocate to fund balance' for future
allocation of Village Council approved salary increases. The final budget reflects the amounts
that were allocated to departments to fund the salary increases.
• $32,281 was reduced in General government — Legal, while the same amount was increased in
Building and Zoning — Legal.
• The budget for general government decreased $33,603.
• The public safety budget increased $388,487.
• The transportation (public works) budget increased $43,105.
• Capital outlay budget increased $96,832.
$76,714 of the increase in the final budget was funded by appropriating existing fund balance and the
remaining increase was funded through increases in various budgeted revenues. The increase in
appropriations funded the following;
• $19,647 — roll -forward of encumbrances from the prior year.
• $20,590 — Transplanting 9 royal palm trees to Tequesta Drive
• $10,466 —Mimosa E-mail archive system
• $8,900 —Thermal imaging camera
• $17,111— Vehicle for Police Chief.
Although the final budgeted operating expenditures were $497,856 (5.7%) greater than the original
budget, actual gperating expenditures were $235,431 (2.7%) less than the original budget and
$741,287 (8°lo) less than the amended budget. Additional detail of final budget versus actual:
• The budget for general government decreased $33,603.
• The public safety budget increased $388,487.
• The transportation (public works) budget increased $43,105.
Capital Assets and Debt Administration
Capital assets: The Village's capital assets for its governmental and business -type activities are
$31,678,097 (net accumulated depreciation) as of September 30, 2008. These assets include land,
buildings, improvements -other -than -buildings and machinery and equipment. Although the Village
added more capital assets during the year than were deducted, the Village's total net capital assets for
the current fiscal year decreased $1,362,400 as annual depreciation was greater than the amount of the
additions. Following is a detail of capital assets at September 30, 2008.
Additional information on the Village's capital assets can be found in Note 7, Capital Assets, starting
on page 37 of this report.
13
Long-term Debt: At the end of the current fiscal year, the Village had no general obligation bonded
debt. All of the Village's outstanding debt is secured by specified and general revenue sources.
Revenue Bonds, net
$ -
$ 259,846
Land
$ 402,935 $
83,335 $
486,270
Construction in progress
69,689
28,564
98,252
$ 437,952
$10,410,379
$4,556,004
Capital leases
Buildings
8,043,522
979,512
9,023,034
Improvements
2,885,012
29,336,257
32,221,269
Equipment
3,921,507
1,175,075
5,096,585
Total capital assets
$ 15,322,667 $
31,602,742 $
46,925,410
$ 6,640,634
$ 7,174,078
$11,213,955
$12,327,854
Less accumulated depreciation
4,220,030
11,027,283
15,247,314
Total capital assets, net
$ 11,102,637 $
20,575,461 $
31,678,096
Long-term Debt: At the end of the current fiscal year, the Village had no general obligation bonded
debt. All of the Village's outstanding debt is secured by specified and general revenue sources.
During the current fiscal year, the Village's net outstanding debt, decreased by $1,113,899 (9.0%).
Additional information on the Village's long-term debt can be found in Note 9. Long -Term Debt
starting on page 42 of this report.
Economic Factor and Next Year's Budgets and Rates
• Gross taxable values of property declined $106,112,826 resulting in lower ad valorem tax
revenues
• The Village Council voted to hold the millage rate of 5.7671mills which was below the roll-
back rate of 6.3917 mills.
• Interest rates continue to decline in spite of the Fed continuing to drop their rate.
14
Revenue Bonds, net
$ -
$ 259,846
$ -
$ 6,587,895
$
$6,847,741
Notes payable
$ 3,917,907
$ 4,118,052
$ 6,492,472
$ 437,952
$10,410,379
$4,556,004
Capital leases
$ 225,399
$ 338,150
$ -
$ -
$ 225,399
$ 338,150
Compensated
Absences
$ 430,014
$ 37,728
$ 148,163
$ 148,231
$ 578,177
$ 585,959
Total Non-current
liabilities
$ 4,573,320
$ 5,153,776
$ 6,640,634
$ 7,174,078
$11,213,955
$12,327,854
During the current fiscal year, the Village's net outstanding debt, decreased by $1,113,899 (9.0%).
Additional information on the Village's long-term debt can be found in Note 9. Long -Term Debt
starting on page 42 of this report.
Economic Factor and Next Year's Budgets and Rates
• Gross taxable values of property declined $106,112,826 resulting in lower ad valorem tax
revenues
• The Village Council voted to hold the millage rate of 5.7671mills which was below the roll-
back rate of 6.3917 mills.
• Interest rates continue to decline in spite of the Fed continuing to drop their rate.
14
+ The State of Florida is projecting that property values in Palm Beach County will continue to
decline through 2010.
+ Revenues from sales taxes are trending lower.
• The unemployment rate for the Village of Tequesta is currently 7.3 percent, which is a
increase of 4.0 percent from a rate of 3.3 percent a year ago.
+ The South Florida Water Management District continues to impose restrictions on water usage
and has indicated that the restrictions might become permanent. The restrictions have resulted
in lower consumption.
• The Village of Tequesta's water rates are changed each year based on calculations detailed in
the Village's Code of Ordinances. Based on these calculations the water rates were increased
2.3% on October 1, 2008.
• All of these factors were considered in preparing the Village of Tequesta's budget for the 2008
fiscal year.
Requests for Information
This financial report is designed to provide a general overview of the Village of Tequesta's finances
for all those with an interest in the government's finances. Questions concerning any of the
information provided in this report or requests for additional financial information should be addressed
to the Village of Tequesta, Finance Office, 345Tequesta Drive, Tequesta, Florida 33469.
15
Page Intentionally Left Blank
BASIC FINANCIAL STATEMENTS
No Text
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2008
ASSETS
Cash and cash equivalents
Investments
Receivables, net
Inventories
Restricted assets:
Investments
Net pension asset
Other assets
Capital assets not being depreciated
Capital being depreciated, net
Total assets
LIABILITIES
Liabilities:
Accounts payable
Retainage payable
Accrued liabilities
Customer deposits
Due to other governments
Other current liabilities
Unearned revenue
Non-current liabilities:
Due within one year
Due in more than one year
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Unrestricted
Total net assets
Business -
Governmental type
Activities Activities Total
$ 3,027,225
$ 2,818,825
$ 5,846,050
3,510,270
672,559
4,182,829
375,589
217,437
593,026
41,976
31,836
73,812
201,835
139,619
341,454
418,939
-
418,939
77,097
55,133
132,230
472,624
111,899
584,523
10,630,013
20,463,561
31,093,574
18,755,568 24,510,869 43,266,437
102,497
99,322
201,819
-
1,000
1,000
362,612
28,553
391,165
-
16,975
16,975
2,852
-
2,852
56,825
59,884
116,709
238,608
-
238,608
317,605
265,958
583,563
4,255,715
6,374,676
10,630,391
5,336,714
6,846,368
12,183,082
6,959,332 14,082,989 21,042,321
6,459,522 3,581,512 10,041,034
$ 13,418,854 $17,664,501 $31,083,355
See notes to basic financial statements.
-16-
Functions/Programs
Governmental activities:
General government
Transportation
Public safety
Leisure services
Interest on long term debt
Total governmental activities
Business -type activities:
Water
Other enterprise activities
Total business -type activities
Total
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED SEPTEMBER 30, 2008
$ 1,344,038 $ 475,244 $ 5,770 $
736,844
Net (Expense) Revenue and
Program Revenues
Changes in Net Assets
Charges Operating Capital
Business -
for Grants and Grants and
Governmental type
Expenses Services Contributions Contributions
Activities Activities Total
$ 1,344,038 $ 475,244 $ 5,770 $
736,844
12 12,718 -
5,784,245
863,391 223 -
539,450
50,219 - 57,736
206,126
- - -
8,610,703
1,388,866 18,711 57,736
3,760,426 3,463,564 - -
635,244 702,168 - -
4,395,670 4,165,732 - -
$13,006,373 $5,554,598 $ 18,711 $ 57,736
General revenues:
Ad valorem taxes
Other taxes
Franchise fees based on gross receipts
Unrestricted intergovernmental
Unrestricted investment earnings
Miscellaneous revenues
Transfers
Total general revenues
Change in net assets
Net assets, beginning
Net assets, ending
See notes to basic financial statements.
-17-
$ (863,024) $
- $ (863,024)
(724,114)
- (724,114)
(4,920,631)
- (4,920,631)
(431,495)
- (431,495)
(206,126)
- (206,126)
(7,145,390)
- (7,145,390)
- (296,862) (296,862)
- 66,924 66,924
- (229,938) (229,938)
(7,145,390) (229,938) (7,375,328)
5,661,200
-
5,661,200
1,123,272
-
1,123,272
462,296
-
462,296
783,034
-
783,034
152,602
86,811
239,413
37,621
39,955
77,576
120,600
(120,600)
-
8,340,625
6,166
8,346,791
1,195,235
(223,772)
971,463
12,223,619
17,888,273
30,111,892
$ 13,418,854
$17,664,501
$31,083,355
VILLAGE OF TEQUESTA, FLORIDA
BALANCESHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2008
ASSETS
Cash and cash equivalents
Investments
Receivables, net
Inventories
Restricted assets:
Investments
Other assets
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Accrued liabilities
Due to other governments
Deferred revenue
Other current liabilities
Total liabilities
Fund balances:
Reserved for:
Inventories
Encumbrances
Unreserved, designated for, reported in:
General fund:
Designated for disaster relief
Capital improvement fund:
Bridge repair
Unreserved, undesignated, reported in:
General fund
Special revenue fund
Capital projects fund
Capital improvement fund
Special law enforcement fund
Total fund balances
Total liabilities and fund balances
Other Total
Governmental Governmental
General Funds Funds
$ 1,764,023 $ 1,263,202 $ 3,027,225
3,510,270 - 3,510,270
375,589 - 375,589
41,976 - 41,976
201,835
-
201,835
77,097
-
77,097
5,970,790
1,263,202
7,233,992
22,037
5,262,808 1,207,790
102,497
-
102,497
362,612
-
362,612
2,852
-
2,852
183,196
55,412
238,608
56,825
-
56,825
707,982
55,412
763,394
41,976
-
41,976
40,220
12,752
52,972
1,000,000 - 1,000,000
330,000 330,000
4,180,612 -
4,180,612
- 369,490
369,490
- 378,505
378,505
- 95,006
95,006
- 22,037
22,037
5,262,808 1,207,790
6,470,598
$ 5,970,790 $ 1,263,202
Amounts reported for governmental activities in the
statement of net assets are different because:
Capital assets used in governmental activities are not financial resources and,
therefore, are not reported in the funds.
11,102,637
Net pension asset is not considered to represent a financial asset
418,939
Long-term liabilities, including bonds payable, not due and payable in the current
period and therefore are not reported in the governmental funds
(4,573,320)
Net assets of governmental activities
$ 13,418,854
See notes to basic financial statements.
-18-
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2008
Revenues:
Ad valorem taxes
Other taxes
Intergovernmental
Franchise fees
Charges for services
Intragovernmental
Grants and contributions
Licenses and permits
Investment earnings
Fines and forfeitures
Miscellaneous
Rents and royalties
Impact fees
Total revenues
Expenditures:
Current:
General government
Public safety
Transportation
Leisure services
Capital ow.lay
Debt service:
Principal
Interest
Fiscal charges
Total expenditures
Excess of revenues over expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances, beginning
Fund balances, ending
Other Total
Governmental Governmental
General Funds Funds
$ 5,661,200 $
-
$ 5,661,200
1,123,272
87,167
1,210,439
783,034
-
783,034
44,270
418,026
462,296
574,938
-
574,938
280,100
-
280,100
18,711
57,736
76,447
299,059
-
299,059
141,604
10,998
152,602
40,079
700
40,779
38,242
-
38,242
103,627
-
103,627
2,575
-
2,575
9,110,711
574,627
9,685,338
1,220,238
-
1,220,238
5,439,202
-
5,439,202
692,552
-
692,552
467,740
-
467,740
172,579
84,794
257,373
312,896
259,846
572,742
184,246
15,990
200,236
5,890
-
5,890
8,495,343
360,630
8,855,973
615,368 213,997 829,365
473,700
450,600
924,300
(330,000)
(473,700)
(803,700)
143,700
(23,100)
120,600
759,068
190,897
949,965
4,503,740
1,016,893
5,520,633
$ 5,262,808 $
1,207,790 $
6,470,598
See notes to basic financial statements.
-19-
VILLAGE OF TEQUESTA, FLORIDA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED SEPTEMBER 30, 2008
Amounts reported for governmental activities in the statement of activities
(Page 17) are different because:
Net change in fund balances - total governmental funds (Page 19)
Governmental funds report capital outlays as expenditures. However, in the
statement of activities, the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense. This is the
amount by which capital outlays exceeded depreciation in the current period.
The details of the difference are as follows:
Capital outlay
Depreciation expense
Net adjustment
The issuance of long-term debt provides current financial resources to
governmental funds, while the repayment of the principal of long-term
debt consumes the current financial resources of governmental funds.
The detail of the differences are as follows:
Principal payments:
1994 revenue bonds
Notes payable
Capital leases
Net adjustment
Some expenses reported in the statement of activities do not require the
use of current financial resources and, therefore, are not reported as
expenditures in governmental funds:
The details of the difference are as follows:
Compensated absences
Net pension expenses
Change in net assets of governmental activities (Page 17)
See notes to basic financial statements.
-20-
$ 257,373
(655,885)
259,846
200,145
112,751
$ 949,965
(398,512)
572,742
7,715
63,325
$1,195,235
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2008
ASSETS
Current assets:
Cash and cash equivalents
Investments
Accounts receivable, net
Inventories
Other assets
Restricted assets:
Investments
Total current assets
Non-current assets:
Capital assets not being depreciated
Capital assets being depreciated, net
Total non-current assets
Total assets
LIABILITIES AND NET ASSETS
Current liabilities:
Accounts payable
Retainage payable
Accrued liabilities
Customer deposits
Current maturities of long-term debt
Current portion of compensated absences
Other current liabilities
Total current liabilities
Long-term liabilities:
Compensated absences
Notes payable (net of deferred loss on refunding)
Total long-term liabilities
Total liabilities
Net assets:
Invested in capital assets, net of related debt
Unrestricted
Total net assets
Business -type Activities
Water Nonmajor
Fund Funds
Totals
$ 2,787,142 $ 31,683 $ 2,818,825
355,929
316,630
672,559
209,562
7,875
217,437
31,728
108
31,836
54,837
296
55,133
125,760
13,859
139,619
3,564,958
370,451
3,935,409
111,899
-
111,899
18,746,277
1,717,284
20,463,561
18,858,176
1,717,284
20,575,460
22,423,134
2,087,735
24,510,869
94,789
4,533
99,322
1,000
-
1,000
28,553
-
28,553
16,975
-
16,975
261,178
-
261,178
4,780
-
4,780
59,884
-
59,884
467,159
4,533
471,692
141,529
1,854
143,383
6,231,293
-
6,231,293
6,372,822
1,854
6,374,676
6,839,981
6,387
6,846,368
12,365,705
1,717,284
14,082,989
3,217,448
364,064
3,581,512
$15,583,153
$2,081,348
$17,664,501
See notes to basic financial statements.
-21-
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
PROPRIETARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2008
Operating revenues:
Charges for services
Total operating revenues
Operating expenses:
Cost of sales and services:
Plant production
Distribution
Stormwater
Purchased services
Management services
Administration
Depreciation
Total operating expenses
Operating income (loss)
Non-operating revenues (expenses):
Connection fees
Miscellaneous revenue
Investment income
Interest expense
Other fiscal charges
Total non-operating revenues (expenses)
Income (loss) before transfers
Transfers out
Change in net assets
Net assets, beginning
Net assets, ending
Business -type Activities
Water Nonmajor
Fund Funds Totals
$ 3,463,564 $ 702,168 $ 4,165,732
3,463,564 702,168 4,165,732
1,280,519
-
1,280,519
747,865
-
747,865
-
109,620
109,620
-
414,481
414,481
265,000
15,100
280,100
334,717
-
334,717
905,260
96,043
1,001,303
3,533,361
635,244
4,168,60.5
(69,797) 66,924 (2,873)
37,806
-
37,806
2,149
-
2,149
72,811
14,000
86,811
(221,237)
-
(221,237 1,
(5,828)
-
(5,828)
(114,299)
14,000
(1.00,299)
(184,096)
80,924
(103,172)
-
(120,600)
(120,600)
(184,096)
(39,676)
(223,772)
15,767,249
2,121,024
17,888,273
$15,583,153
$ 2,081,348
$17,664,501
See notes to basic financial statements.
-22-
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2008
Business -type Activities
Water
Nonmajor
Fund
Funds
Totals
Cash flows from operating activities:
Cash received from customers, governments and other funds
$ 3,545,990
$ 701,518
$ 4,247,508
Cash paid to suppliers
(2,227,533)
(513,535)
(2,741,068)
Cash paid to employees
(1,130,180)
(47,617
(1,177,797)
Net cash provided by operating activities
188,277
140,366
328,643
Cash flows from non -capital financing activities:
Transfers to other funds
-
(120,600)
(120,600)
Net cash used in non -capital financing activities
-
120,600)
(120,600)
Cash flows from capital and related financing activities:
Acquisition and construction of capital assets
(11,355)
(26,062)
(37,417)
Proceeds from connection fees
37,806
-
37,806
Proceeds from notes payables
6,554,935
-
6,554,935
Principal payments on long tern debt
(63,247)
-
(63,247)
Bond refunding payments
(7,025,063)
-
(7,025,063)
Interest paid
(221,237)
-
(221,237)
Net cash used in capital and related financing activities
728,162)
(26,062)
(754,224)
Cash flows from investing activities:
Sales of investments, net
2,782,470
22,404
2,804,874
Interest received on investments
69,132
14,000
83,132
Net cash provided by investing activities
2,851,602
36,404
2,888,006
Net increase in cash and cash equivalents
2,311,718
30,108
2,341,826
Cash and cash equivalents, beginning
475,424
1,575
476,999
Cash and cash equivalents, ending
$ 2,787,142
$ 31,683
$ 2,818,825
Adjustments to reconcile operating income to net cash provided
by operating activities:
Operating income (loss)
$ (69,797)
$ 66,924
$ (2,873)
Depreciation and amortization
905,260
96,043
1,001,303
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable
82,426
(650)
81,776
Inventories
(9,661)
(108)
(9,769)
Other assets
103,988
(296)
103,692
Increase (decrease)in:
Accounts payable and accrued liabilities
(524,998)
(21,547)
(546,545)
Compensated absences
(667)
-
(667)
Customer deposits
(298,274)
-
(298,274)
Net cash provided by operating activities
$ 188,277
$ 140,366
$ 328,643
See notes to basic financial
statements:
-23-
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
SEPTEMBER 30, 2008
LIABILITIES AND NET ASSETS
Accounts payable 21,785
Total liabilities 21,785
Net assets held in trust for pension benefits $ 5,377,325
See notes to basic financial statements
-24-
Pension
Trust
Funds
ASSETS
Cash and cash equivalents
$ 385,638
Investments, at fair value:
Corporate stocks
2,867,957
Corporate bonds
550,712
Government backed assets
1,463,162
Contribution receivable
94,619
Accrued interest receivable
22,138
Due from broker
14,884
Total assets
5,399,110
LIABILITIES AND NET ASSETS
Accounts payable 21,785
Total liabilities 21,785
Net assets held in trust for pension benefits $ 5,377,325
See notes to basic financial statements
-24-
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2008
Investment income
Net depreciation in fair value of investments
Pension
Investment earnings
Trust
ADDITIONS
Funds
Contributions:
48,911
Employer
$ 574,922
Employee
197,038
Total contributions
771,960
Investment income
Net depreciation in fair value of investments
(776,419)
Investment earnings
142,100
(634,319)
Less investment expenses
48,911
Net investment loss
(683,230)
Total additions
88,730
DEDUCTIONS
Pension benefits 38,851
Operating expenses 45,757
Total deductions 84,608
Net increase 4,122
Net assets held in trust for pension benefits:
Net assets, beginning 5,373,203
Net assets, ending $ 5,377,325
See notes to basic financial statements.
-25-
NOTES TO BASIC FINANCIAL STATEMENTS
No Text
VILLAGE OF 'TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2008
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 financial statements of the Village have been
prepared in conformity with accounting principles generally accepted in the United States
(GAAP) as applied to governmental units. The Governmental Accounting Standards Board
(GASB) is the accepted standard-setting body for establishing governmental and financial
reporting principles. The more significant of the Village's accounting policies are described
below:
a. The Financial Reporting Entity
The financial statements were prepared in accordance with government accounting standards,
which establishes standards for defining and reporting on the financial reporting entity. The
definition of the financial reporting entity is based upon the concept that elected officials are
accountable to their constituents for their actions. One of the objectives of financial reporting
is to provide users of financial statements with a basis for assessing the accountability of the
elected officials. The financial reporting entity consists of the Village, organizations for which
the Village is financially accountable and other organizations for which the nature and
significance of theirrelationship with the Village are such that exclusion would cause the
reporting entity's financial statements to be misleading or incomplete. The Village is
financially accountable for a component unit if it appoints a voting majority of the
organization's governing board and it is able to impose its will on that organization or there is
a potential for the organization to provide specific financial benefits to, or impose specific
financial burdens on, the Village.
Based upon the application of these criteria, the Village Employees' Retirement System (the
Retirement System) meets ' the criteria described above and has been included in the
accompanying financial statements. The Retirement' System functions for the benefit of the
employees and is governed by a seven member board, of which the Village. Council appoints
three members. The Village and Retirement System' members are obligated to fund all
Retirement System costs based upon actuarial valuations. The Village funds the difference
between member and other contributions and the actuarial cost. Considering these factors, it
has been determined that the Retirement System is fiscally dependent on the Village, which
makes the Retirement System a component unit of the Village. Since' the Retirement System
provides services exclusively for the benefit of the Village, the Retirement System is reported
as a blended component unit, specifically as the Village Employees' Retirement System. The
Village Employees' Retirement' System administers the following Plans: The General
Employees' Pension Trust Fund, which does not issue a stand alone financial report, and The
Public Safety Officers' Pension Trust Fund `which consists of The Firefighters' Pension Trust
Fund, and The Police Officers' Pension Trust Fund. The Public Safety Officers',' Pension
Trust Fund does not issue a stand alone financial report.
-26-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
b. Government -Wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net assets and the statement
of activities) report information on all of the non -fiduciary activities of the Village. For the
most part, the effect of interfund activity has been removed from these statements.
Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business -type activities, which rely to a significant
extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or
segment. Taxes and other items not properly included among program revenues are reported
instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government -wide financial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements. All remaining nonmajor
governmental funds or proprietary funds are aggregated and reported as other governmental or
other proprietary funds.
c. Measurement Focus, Basis of Accounting and Basis of Presentation
The government -wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and
fiduciary fund financial statements. Revenues are recorded when earned and expenses are
recorded when a liability is incurred, regardless of the timing of related cash flows. Property
taxes are recognized as revenues in the year for which they are levied. Grants and similar
items are recognized as revenue as soon as all eligibility requirements imposed by the provider
have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available
when they are collectible within the current period or soon enough thereafter to pay liabilities
of the current period. For this purpose, the Village considers for the majority of revenues to
be available if they are collected within 60 days of the end of the current fiscal period.
Expenditures are recorded when a liability is incurred, as under accrual accounting. However,
debt service expenditures, as well as expenditures related to compensated absences and claims
and judgments, are recorded only when payment is due.
-27-
VILLAGE OF TEQUESTA, F+ LORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
c. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
Property taxes, franchise fees and other taxes, licenses, and interest associated with the current
fiscal period are all considered to be susceptible to accrual and so have been recognized as
revenues of the current fiscal period. All other revenue items are considered to be measurable
and available only when cash is received by the Village.
The Village reports the following major governmental fund:
The General Fund is the Village's primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another
fund.
The Village also reports the following nonmajor government funds:
The Special Revenue Fund had a total fund balance of $369,490 at 9/30/2008. The fund
was created to account for the Improvement Revenue Refunding Bond Series 1994. On
June 20, 2008 the Village paid the remaining balance of $259,846 in full. There were no
early payment penalties and the Village avoided an additional $8,295 in interest.
The Special Law Enforcement Fund accounts for forfeitures received by the Police
Department. The forfeitures must be expended for certain law enforcement purposes as
prescribed by Florida Statue Chapter 932.704.
The Capital Improvement Fund is used to account for the maintenance and upkeep of
the Village's general infrastructure (such as roads, bridges, sidewalks and storm
water drainage systems) and streetscape beautification projects.
The Capital Projects Fund accounts for the acquisition or construction of various major
capital projects.
The Village reports the following major proprietary funds:
The Water Fund is used to account for the activities of the water operations.
The Village also reports the following nonmajor proprietary funds:
The Stormwater Utility Fund accounts for the construction and maintenance of the
Village's stormwater system.
The Refuse and Recycling Fund is used to account for the fees charged for solid waste and
recyclable material collection.
-28-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
c. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
Additionally, the Village reports the following fiduciary funds:
The Firefighters' Pension Trust Fund accounts for the accumulation of resources and for
contributions and benefits of the firefighter employees.
The Police Officers' Pension Trust Fund accounts for the accumulation of resources and
for contributions and benefits of the police employees.
The General Employees' Trust Fund accounts for the accumulation of resources and for
contributions and benefits of the general employees of the Village.
Private -sector standards of accounting and financial reporting issued prior to December 1,
1989, generally are followed in both the government -wide and proprietary fund financial
statements to the extent that those standards do not conflict with or contradict guidance of the
Governmental Accounting Standards Board. The Village has the option of following
subsequent private -sector guidance for their business -type activities and enterprise funds,
subject to this same limitation. The Village has elected not to follow subsequent private -
sector guidance.
As a general rule, the effect of interfund activity has been eliminated from the government -
wide financial statements. Exceptions to this general rule are payments -in -lieu of taxes and
other charges between the Village utility functions and various other functions of the Village.
Elimination of these charges would distort the direct costs and program revenues reported for
the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for
goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital
grants and contributions. Internally dedicated resources are reported as general revenues
rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The
principal operating revenues of the Village's water utility, stormwater utility and solid waste
services funds are charges to customers for services. Operating expenses for proprietary funds
include the costs of services, administrative expenses, and depreciation on capital assets. All
revenues and expenses not meeting this definition are reported as nonoperating revenues and
expenses.
When both restricted and unrestricted resources are available for use, it is the Village's policy
to use restricted resources first, then unrestricted resources as they are needed.
-29-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
d. Assets, Liabilities, and Net Assets or Equity
1. Deposits and Investments
The Village's cash and cash equivalents include cash on hand, time and demand deposits,
and short-term investments with original maturities of three months or less from the date of
acquisition and investments with the State Board Investment Pool.
Short-term investments, except the State Board Investment Pool, are reported at cost,
which approximates fair value. The Investment Pool is recorded at its value of the pool
shares (2A-7 Pool) which is fair value.
The nature of investments is governed by the provisions of Florida Statutes Section 218.
Under this statute, authorized investments are limited, unless otherwise authorized by law
or ordinance, to the local government surplus funds trust fund, money market funds, direct
or unconditionally guaranteed obligations of the United States Government, obligations of
certain governmental agencies, interest bearing time deposits or savings accounts.
2. Receivables and Payables
Activities between funds that are representative of lendingiborrowing arrangements
outstanding at the end of the fiscal year are referred to as "due to/from other funds". Any
residual balances outstanding between the governmental activities and business -type
activities are reported in the government -wide financial statements as "internal balances."
3. Inventories
Inventories of the general fund are valued at cost on a first -in, first -out (FIFO) method.
Inventories consist of expendable supplies held for consumption. The cost is recorded as
an expenditure at the time individual inventory items are purchased.
Inventories of the Water Fund are valued at lower of cost (determined using the weighted
average) or market and consist of pipes, valves, fittings and meters. The cost is recorded as
an expenditure at the time individual inventory items are put into service.
4. Capital Assets
Capital assets, which include property, plant and equipment, and certain infrastructure assets
acquired prior to the implementation of GASB 34, (e.g., utility plant, roads, bridges,
sidewalks, and similar items), are reported in the applicable governmental or business -type
activities columns in the government -wide financial statements. In the case of the initial
capitalization of general infrastructure assets (i.e., those reported by governmental activities)
the Village chose to include all such items regardless of their acquisition date. The Village
was able to estimate the historical cost for the initial reporting of these assets through
analyzing prior audited financial statements, notes to the audited financial statements and
year end workpaper files. Capital assets are defined by the Village as assets with an
-30-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
d. Assets, Liabilities, and Net Assets or Equity (Continued)
4. Capital Assets (Continued)
initial, individual cost of more than $1,000 and an estimated useful life in excess of one
year. Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at estimated fair market value at the date
of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend assets lives are not capitalized. Major outlays for capital assets and
improvements are capitalized as projects are constructed. Interest incurred during the
construction phase of capital assets of business -type activities is included as part of the
capitalized value of the asset constructed. There was no capitalized interest expense in
2008.
Capital assets of the Village are depreciated using the straight line method over the
following estimated useful lives:
R.O. Plant/Wells
40 — 50 years
Buildings
20 — 40 years
Improvements
20 — 30 years
Equipment
2 — 15 years
5. Compensated Absences
It is the Village's policy to permit employees to accumulate within certain limits, earned
but unused vacation time and sick leave, which will be paid to employees upon separation
from Village service. All vacation and sick leave pay is accrued when incurred in the
government -wide and proprietary fund financial statements. In the governmental funds, a
liability is recorded only for unused vacation and sick leave payouts for employees who
have separated, for example, as a result of employee resignations and retirements. For the
governmental funds, compensated absences are liquidated by the general fund.
6. Long -Term Obligations
In the government -wide financial statements, and proprietary fund types in the fund
financial statements, long-term debt and other long-term obligations are reported as
liabilities in the applicable governmental activities, business -type activities, or proprietary
fund type statement of net assets. Bond premiums and discounts, as well as issuance costs,
are deferred and amortized over the life of the bonds using the straight-line amortization
method. The result of using this method does not differ significantly from the effective
interest method. Bonds payable are reported net of the applicable bond premium or
discount.
-31-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
d. Assets, Liabilities, and Net Assets or Equity (Continued)
6. Long -Term Obligations (Continued)
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of
debt issued is reported as other financing sources. Premiums received on debt issuances
are reported as other financing sources while discounts on debt issuances are reported as
other financing uses. Issuance costs, whether or not withheld from the actual debt
proceeds received, are reported as debt service expenditures.
7. Use of Estimates
The financial statements and related disclosures are prepared in conformity with
accounting principles generally accepted in the United States. Management is required to
make estimates and assumptions that affect the reported amounts of assets and liabilities,
the disclosure of contingent assets and liabilities at the date of the financial statements and
revenue and expenses during the period reported. These estimates include assessing
collectibility of accounts receivable, the pension obligations, and useful lives and
impairment of tangible assets, among others. Estimates and assumptions are reviewed
periodically and the effects of revisions are reflected in the financial statements in the
period they are determined to be necessary. Actual results may differ from those estimates.
8. Fund Equity
In the fund financial statements, governmental funds report reservations of fund balance
for amounts that are not available for appropriation or are legally restricted by outside
parties for use for a specific purpose. Designations of fund balance, where noted, represent
tentative management plans that are subject to change.
NOTE 2. PROPERTY TAXES
Ad valorem taxes are assessed and liened as of January 1st and billed the following October.
They are due and payable on November 1st of each year or as soon thereafter as the assessment
roll is certified and delivered to the Tax Collector. These taxes are collected by the County and
remitted to the Village. Revenue is recognized at the time monies are received from the County.
All unpaid taxes become delinquent on April 1 following the year in which they are assessed.
Discounts are allowed for early payment at the rate of 4% in the month of November, 3% in the
month of December, 2% in the month of January and 1% in the month of February. The taxes
paid in March are without discount. At September 30'', unpaid delinquent taxes, if any, are
reflected as a receivable on the balance sheet.
-32-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 2. PROPERTY TAXES (Continued)
Assessed values are established by the Palm Beach County Property Appraiser at approximately
fair market value. The assessed value for operating purposes of property at January 1, 2007, upon
which the 2007-2008 levy was based, was approximately $1.02 billion.
Under Florida law, the assessment of all properties and the collection of all county, municipal,
school district and special district property taxes are consolidated in the offices of the County
Property Appraiser and County Tax Collector. The Village is permitted by Article 7, Section 8 of
the Florida Constitution to levy taxes up to $10 (10 mills) per $1,000 of assessed valuation for
general governmental services (other than the payment of principal and interest on general
obligation long-term debt). In addition, unlimited amounts may be levied for the payment of
principal and interest on general obligation long-term debt, subject to a limitation on the amount
of debt outstanding. The millage rate to finance general governmental services for the year ended
September 30, 2008 was 5.7671 mills per $1,000 of assessed valuation. There were no material
delinquent property taxes at September 30, 2008.
NOTE 3. DEPOSITS AND INVESTMENTS
Deposits
All of the Village's deposits are held in qualified public depositories pursuant to State of
Florida Statutes, Chapter 280, Florida Security for Public Deposits Act. Under the Act, every
qualified public depository shall deposit with the Treasurer eligible collateral of the depository
to be held subject to his or her order. The Treasurer, by rule, shall establish minimum
required collateral pledging levels. The pledging level may range from 25% to 125% of the
average monthly balance of public deposits depending upon the depository's financial
condition and establishment period. All collateral must be deposited with an approved
financial institution. Any potential losses to public depositors are covered by applicable
deposit insurance, sale of securities pledged as collateral and, if necessary, assessments against
other qualified public depositories of the same type as the depository in default.
Investments
The Village has adopted an investment policy in accordance with Florida Statutes to establish
guidelines for the efficient management of its cash reserves. The Village is authorized to
invest in obligations of the U.S. Treasury, its agencies and instrumentalities, certificates of
deposit, Local Government Surplus Funds Trust Fund, any intergovernmental investment
pools authorized pursuant to Chapter 163 of the Florida Statutes, SEC registered money
market funds with the highest credit quality rating from a nationally recognized rating agency,
and securities of any interest in any open-end or closed-end management type investment
company or investment trust registered under the Investment Company Act of 1940, provided
that the portfolio is limited to obligations of the U.S. government, its agencies and
instrumentalities and to repurchase agreements fully collateralized by such U.S. government
obligations and provided that such investment company or investment trust takes delivery of
such collateral either directly or through an authorized custodian.
-33
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 3. DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
The State Board of Administration (SBA) administers the Local Government Surplus Funds
Trust Fund (LGIP) and the Fund B Surplus Funds Trust Fund (Fund B), both of which are
governed by Chapter 19-7 of the Florida Administrative Code and Chapters 218 and 215 of
the Florida Statutes. These rules provide guidance and establish the policies and general
operating procedures for the administration of the LGIP and Fund B. The LGIP is not a
registrant with the Securities and Exchange Commission (SEC); however, the Board has
adopted operating procedures consistent with the requirements for a 2a-7 fund, which permits
money market funds to use amortized cost to maintain a constant net asset value (NAV) of $1
per share. The fair value of the position in the LGIP is equal to the value of the pool shares.
The Fund B is accounted for as a fluctuating NAV pool. As of September 30, 2008, the fair
value factor for Fund B was $.798385 per share. The Fund B is not subject to participant
withdrawal requests. Distributions from Fund B, as determined by the SBA, are effected by
transferring eligible cash or securities to the LGIP, consistent with pro rata allocation of pool
shareholders of record at the creation of Fund B. One hundred percent of such distributions
from Fund B are available as a liquid balance within the LGIP. The investments in the LGIP
and Fund B are not insured by FDIC or any other governmental agency.
As of September 30, 2008, the Village had the following investments:
LGIP
Fund B
Weighted
Fair Average
Value Maturi
$4,812,830 8.5 days
341,453 9.36 years
$ 5,154,283
As of September 30, 2008, the retirement plan had the following debt securities:
Retirement Plan Corporate Bonds
Retirement Plan U.S. Agencies
Retirement Plan U.S. Treasuries
'.1Cra
Investment Maturity
(In Years)
Less than
Fair Value 1 Year 1-5 Years
$ 550,712 $ - $ 550,712
1,296,501 - 1,296,501
166,661 - 166,661
$ 2,013,874 $ - $ 2,013,874
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 3. DEPOSITS AND INVESTMENTS (Continued)
Interest Rate Risk
The Village Pension Board of Trustees has an investment policy to obtain a reasonable total
rate of return to commensurate with the Prudent Investor Rule and any other applicable
statute. The Pension Board employs a professional Investment Manager to invest the assets of
the funds. Within the parameters allowed by the Prudent Investor Rule, the asset allocation of
the funds is solely at the Investment Manager's discretion, including sector weightings and
investment style. Additionally, the Board of Trustees retains a monitoring service to evaluate
and report on a quarterly basis the rate of return and relative performance of the Funds.
Credit Risk
The Pension Board investment policy does not allow for an investment in any one issuer that
is in excess of five percent of total assets, nor shall the aggregate exceed five percent of the
outstanding capital stock of the issuer.
Custodial Credit Risk — Investments
The Pension Trust investment policy requires all investments be placed in the custody
(custodian) of a Qualified Public Depository, pursuant to Florida Statute 280. The plan assets
are held by a third party custodian, and all securities purchased by, and all collateral obtained
by, the plan shall be properly designated as plan assets. Securities transactions between a
broker-dealer and the custodian involving purchase or sale of securities by transfer of money
or securities must be made on a "delivery vs. payment" basis to insure that the custodian will
have the security or money in hand at conclusion of the transaction.
NOTE 4. RECEIVABLES
Receivables at September 30, 2008 for the government's individual major funds, non -major and
fiduciary funds in the aggregate, including the applicable allowance for uncollectible accounts,
are as follows:
Customers billed
Other taxes
Miscellaneous
Employees
Intergovernmental
Gross receivables
Less allowance for uncollectibles
Net total receivables
$ 375,589 $ 209,562 $ 7,875 $131,641 $ 724,667
-35-
Nonmajor
Pension
and Other
Trust
General
Water
Funds
Funds
Total
$138,350
$206,671
$ 752
$ -
$345,773
156,960
-
-
-
156,960
6,492
2,830
2,404
131,641
143,367
864
-
-
-
864
104,402
4,561
4,719
-
113,682
407,068
214,062
7,875
131,641
760,646
(31,479)
(4,500)
-
-
(35,979)
$ 375,589 $ 209,562 $ 7,875 $131,641 $ 724,667
-35-
VILLAGE OF T'EQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 4. RECEIVABLES (Continued)
Governmental funds report deferred revenue in connection with receivables for revenues that are
not considered to be available to liquidate liabilities of the current period. Governmental funds
also defer revenue recognition in connection with resources that have been received, but not yet
earned.
At the end of the current fiscal year, various components of unearned revenue reported in the
governmental funds were as follows:
Prepayments on Sprint lease (general fund) $ 91,234
Prepayments on T -Mobile lease (general fund) 8,151
Prepayments on Nextel lease (general fund) 67,489
Licenses and registrations not yet due (general fund) 4,602
Licenses and registrations not yet due (special revenue fund) 55,412
Permits not yet due (general fund) 3,720
Sponsorship - deferred revenue 8,000
$ 238,608
NOTE 5. INTERFUND TRANSFERS
Inter -fund transfers during the year ended September 30, 2008 are as follows:
Transfers are used to (1) move excess revenues from special revenue fund as required by bond
covenants, (2) move revenues from the fund with collection authorization to the fund where debt
service principal and interest payments become due.
Interfund Administrative Fee
During the year ended September 30, 2008, the Enterprise Funds remitted $280,100 to the
General Fund for Administrative Management fees. This amount is reflected as Intra -
governmental Services revenue in the General Fund and as management fees, an operating
expense, in the Enterprise Funds.
-36-
Transfers In
Non -major
General
Governmental
Transfers Out
Fund
Fund
Total
General fund
$ -
$ 330,000
$ 330,000
Non -major governmental
473,700
-
473,700
Stormwater utility
-
120,600
120,600
Total
$ 473,700
$ 450,600
$ 924,300
Transfers are used to (1) move excess revenues from special revenue fund as required by bond
covenants, (2) move revenues from the fund with collection authorization to the fund where debt
service principal and interest payments become due.
Interfund Administrative Fee
During the year ended September 30, 2008, the Enterprise Funds remitted $280,100 to the
General Fund for Administrative Management fees. This amount is reflected as Intra -
governmental Services revenue in the General Fund and as management fees, an operating
expense, in the Enterprise Funds.
-36-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 6. RESTRICTED ASSETS
Restricted assets as of September 30, 2008 consist of the following accounts:
SBA Fund
NOTE 7. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2008 was as follows:
Governmental activities:
Capital assets not being depreciated:
Land
Construction in progress
Total capital assets not being depreciated
Capital assets being depreciated:
Buildings
Improvements other than buildings
Equipment
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings
Improvements other than buildings
Equipment
Total accumulated depreciation
Total capital assets being depreciated
Governmental activity capital assets, net
-37-
$ 341,454
Beginning Ending
Balance Additions Deductions Balance
$ 402,935 $ - $ - $ 402,935
962,255 69,686 (962,252) 69,689
1,365,190 69,686 (962,252) 472,624
7,790,354 253,168 - 8,043,522
2,157,358 727,654 - 2,885,012
3,901,219 169,119 (148,829) 3,921,509
13,848,931 1,149,941 148,829 14,850,043
(712,559) (207,422) - (919,981)
(433,220) (100,065) - (533,285)
(2,567,193) (344,625) 145,054 (2,766,764)
(3,712,972) (652,112) 145,054 (4,220,030)
10,135,959 497,829 (3,775) 10,630,013
$ 11,501,149 $ 567,515 $ (966,027 $11,102,637
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 7. CAPITAL ASSETS (Continued)
Business -type activities:
Capital assets not being depreciated:
Land
Construction in progress
Total capital assets not being depreciated
Capital assets being depreciated:
Buildings
Improvements other than buildings
Equipment
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings
Improvements other than buildings
Equipment
Total accumulated depreciation
Total capital assets being depreciated, net
Business -type activity capital assets, net
Beginning
Ending
Balance
Additions
Deductions
Balance
$ 83,335
$ -
$ -
$ 83,335
-
28,564
-
28,564
83,335
28,564
-
111,899
979,512
-
-
979,512
29,377,857
8,400
(50,000)
29,336,257
1,124,622
50,453
-
1,175,075
31,481,991
58,853
(50,000)
31,490,844
(479,604)
(24,488)
-
(504,092)
(8,872,824)
(894,270)
-
(9,767,094)
(673,552)
(82,545
-
(756,097)
(10,025,980)
(1,001,303
-
(11,027,283)
21,456,011
(942,450
50,000
20,463,561
$21,539,346
$ (913,886
$ (50,000
$20,575,460
Depreciation expense was charged to functions/programs of the Village as follows:
Governmental activities:
General government $ 156,281
Public safety 376,348
Transportation 47,985
Leisure services 71,498
Total depreciation expense - governmental activities $ 652,112
Business -type activities:
Water $ 905,260
Nonmajor funds 96,043
Total depreciation expense - business -type activities $1,001,303
NOTE 8. CAPITAL LEASES
The Village entered into a capital lease with Banc of America in the amount of $397,922 dated
February 13, 2003 for the financing of a fire pumper. The applicable interest rate is 3.61.0% and
interest and principal payments are due annually on April 15'x'. The lease expires on April 15,
2012.
-38-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 8. CAPITAL LEASES (Continued)
The following is a schedule of the future minimum lease payments under this capital lease
arrangement at September 30, 2008:
Fiscal year ending September 30:
2009
$ 46,720
2010
46,720
2011
46,720
2012
46,720
Total minimum lease payments
186,880
Less amount representing interest
(15,721)
Present value of future minimum lease payments
$171,159
The Village entered into a capital lease with Banc of America in the amount of $152,999 dated
May 26, 2005 for the financing of a 2005 American Lafrance Medic Master ambulance. The
applicable interest rate is 3.84% with monthly principal and interest payments totaling $2,802.
The following is a schedule of the future minimum lease payments under this capital lease
arrangement at September 30, 2008.
Fiscal year ending September 30:
2009
$ 33,631
2010
22,420
Total minimum lease payments
56,051
Less amount representing interest
(1,812)
Present value of future minimum lease payments
$ 54,239
Changes in Long -Terni Debt — Capital Leases
The Village entered into a capital lease with GMAC Financial Services in the amount of
$30,677 dated December 10, 2003 for the financing of a Chevrolet Tahoe. The applicable
interest rate was 6.15% with monthly principal and interest payments of $595. The lease was
due to expire on December 01, 2008. Payments totaling $8,001 were made in fiscal year
2008, which included a final payment of $3,489 made on June 12, 2008. This generated a
saving of $84.
The Village entered into a capital lease in the amount of $136,789 dated April 21, 2006 for the
financing of 800mghz radios for the police department. The applicable interest rate was
4.38% with monthly principal and interest payments totaling $2,542. The lease was due to
expire on April 21, 2011.
On September 28, 2007 the Village paid down $66,360 of principal on the loan. Payments
totaling $34,658 were made in fiscal year 2008 which included a final payment of $12, 840 on
June 19, 2008. This generated asaving of $2,862.
-39
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 9. LONG-TERM DEBT
The following is a summary of long-term debt for the year ended September 30, 2008:
Governmental Activities
Note Payable - 2002
On September 13, 2002, the Village entered into a $5,000,000 loan agreement with Bank
of America, maturing September 2022. The interest rate is 4.28%, with monthly principal
and interest payment totaling $31,042. Proceeds from the note are to be used to finance the
final construction of the public safety facility, to repay existing debt obligations and to
reimburse the Village for prior capital expenditures incurred in connection with the
construction of the public safety facility. The Village pledged Public Service Tax Revenue
and any Designated Revenues to secure its obligation.
Debt service requirements to maturity are as follows:
Business -type Activities
Water Expansion Loan
On June 30, 2004, the Village entered into a $645,170 loan agreement with Bank of
America, with an interest rate of 4.96% per annum, maturing May 1, 2024. Proceeds from
the note were used to finance the expansion of the Village water system. Interest on the
outstanding principal balance is paid in arrears, on the first day of each and every May and
November. The final payment of the entire unpaid principal balance and all accrued and
unpaid interest is due on May 1, 2024. The principal may be prepaid at the option of the
Village without any prepayment premium. As of September 30, 2008, $146,275 has been
prepaid on the note.
-40-
Principal
Interest
Total
Year ending September 30:
2009
$ 208,881
$ 163,620
$ 372,501
2010
217,998
154,503
372,501
2011
227,514
144,987
372,501
2012
237,444
135,056
372,500
2013
247,810
124,692
372,502
2014-2018
1,411,056
451,451
1,862,507
2019-2022
1,367,204
122,802
1,490,006
Total
$ 3,917,907
$1,297,111
$ 5,215,018
Business -type Activities
Water Expansion Loan
On June 30, 2004, the Village entered into a $645,170 loan agreement with Bank of
America, with an interest rate of 4.96% per annum, maturing May 1, 2024. Proceeds from
the note were used to finance the expansion of the Village water system. Interest on the
outstanding principal balance is paid in arrears, on the first day of each and every May and
November. The final payment of the entire unpaid principal balance and all accrued and
unpaid interest is due on May 1, 2024. The principal may be prepaid at the option of the
Village without any prepayment premium. As of September 30, 2008, $146,275 has been
prepaid on the note.
-40-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 9. LONG-TERM DEBT (Continued)
Business -type Activities (Continued)
Water Expansion Loan (Continued)
Debt service requirements to maturity are as follows:
Year ending September 30:
2009
2010
2011
2012
2013
2014-2018'
2019-2021
Total
Note Payable - 2008
Principal Interest Payments
$ 24,000 $ 20,579 $ 44,579
25,000
19,388
44,388
26,000
18,148
44,148
27,000
16,859
43,859
29,000
15,520
44,520
167,000
54,683
221,683
116,895
11,492
128,387
$ 414,895
$156,669
$ 571,564
On July 14, 2008, the Village entered into a $6,554,935 loan agreement with Bank of
America, with an interest rate of 3.6852% per annum, maturing on March 1, 2028. Principal
and interest are paid monthly commencing on August 1, 2008 with interest paid in arrears.
The proceeds from the note were used to finance the advance refunding of the Village's 1998
Water Revenue Bonds. At September 30, 2008, the outstanding balance on the note was
$6,514,745.
Year ending September 30:
2009
2010
2011
2012
2013
2014-2018
2019-2023
2024-2028
Principal Interest Payments
$ 237,178 $ 239,306 $ 476,484
237,934
230,512
468,446
246,910
221,463
468,373
255,830
212,671
468,501
267,218
202,353
469,571
1,503,787
851,450
2,355,237
1,813,324
542,801
2,356,125
1,952,564
171,938
2,124,502
$ 6,514,745 $ 2,672,494 $ 9,187,239
-41
i
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 9. LONG-TERM DEBT (Continued)
Changes in Long -Tenn Debt
The following is a summary of changes in long-term liabilities of the Village for the year
ended September 30, 2008:
Governmental activities:
Revenue bonds - 1994
Note payable - 2002
Capital leases
Compensated absences
Business -type activities:
Revenue bonds - 1998
Unamortized bond discount
Note payable - 2004
Note payable - 2008
Unamortized deferred loss
on refunding of debt
Compensated absences
Beginning Ending Within
Balance Additions Deletions Balance One Year
$ 259,846 $ - $ (259,846) $ - $ -
4,118,052 - (200,145) 3,917,907 208,881
338,150 - (112,751) 225,399 72,674
437,728 27,034 (34,748) 430,014 36,050
$ 5,153,776 $ 27,034 $ (607,490) $ 4,573,320 $ 317,605
$ 6,670,000 $ -
(82,105) -
6,587,895 -
437,952 -
- 6,554,935
$ (6,670,000) $
82,105
(6,587,895)
(23,057)
(40,190)
414,895 24,000
6,514,745 237,178
- (441,849) 4,680 (437,169) -
148,231 18,034 (18,102) 148,163 4,780
$ 7,174,078 $ 6,131,120 $ (6,664,564) $ 6,640,634 $ 265,958
All governmental compensated absences activity is reported and paid from the general fund.
Defeasance of Long -Term Debt
On July 14, 2008 the Village of Tequesta defeased $6,670.000 of outstanding bonds remaining
in the Series 1998 $7,915,000 Water Revenue Bonds, by placing the proceeds of a new loan in
an irrevocable trust to provide for all future debt service payments on the old bonds.
Accordingly, the trust account's asset and liability for the defeased bonds were not included in
the Village's financial statements as of that date. hi accordance with a thirty (30) day call
notice requirement, the Village called the bonds on July 14, 2008. On August 14, 2008, the
1998 Water Revenue Bonds were paid in full using the net proceeds of the new debt,
$6,524,935, plus a net cash payment of $173,833. Accordingly, there is no balance remaining
on this debt at September 30, 2008.
The reacquisition price of the new debt exceeded the net carrying amount of the old debt by
$441,849. This amount is being netted against the new debt and amortized over the life of the
new debt. The advance refunding of this debt reduced total debt service payments over the
next 236 months by $1,081,300, resulting in an economic gain of $674,947 (the difference
between the present value of the debt service payments on the old and new debt).
-42-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 9. LONG-TERM DEBT (Continued)
Early Repayment of Improvement Revenue Bonds — Series 1994
The village paid off the remaining balance of $259,846 on the Improvement Revenue Refund
Bonds, Series 1994 on June 20, 2008. There were sufficient funds to pay off the balance, there
were no early payment penalties and the Village avoided an additional $8,295 in interest
payments.
NOTE 10. REQUIRED RESERVES
With the defeasance of the Water Revenue Bonds Series 1998, and the early repayment in full of
the Improvement Bond Revenue, Series 1994 on June 20, 2008, there are no requirements for the
establishment of specific accounts.
NOTE 11. FLORIDA RETIREMENT SYSTEM
Plan Description
All full time employees hired before January 1, 1996 are eligible to participate in the Florida
Retirement System (FRS), a cost sharing, multiple -employer, public retirement system
controlled by the State Legislature and administered by the State of Florida Department of
Administration, Division of Retirement. The FRS provides retirement and disability benefits,
annual cost of living adjustments and death benefits to plan members and beneficiaries. A
post employment health insurance subsidy is also provided to eligible employees.
Benefits are established by Chapter 121, Florida Statutes and Chapter 22B, Florida
Administrative Code. Amendments to the law can only be made by an act of the Florida
Legislature.
The State of Florida issues a publicly available financial report that includes financial
statements and required supplementary information for the FRS. The latest available report
was for the fiscal year ended June 30, 2008. That report may be obtained by writing to the
State of Florida Division of Retirement, Department of Management Services, P.O. Box 9000,
Tallahassee, Florida 32315-9000 or visiting the website at http://dms.myflorida.com.
Funding Policy
The FRS funding policy provides for monthly employer contributions at actuarially
determined rates that, expressed as percentages of annual covered payroll are adequate to
accumulate sufficient assets to pay benefits when due. Level percentage of payroll employer
contribution rates, established by state law, is determined using the entry -age actuarial cost
method. If an unfunded actuarial liability reemerges as a result of future plan benefit changes,
assumption changes, or methodology ,changes, ;it is assumed any unfunded actuarial liability
would be amortized over 30 years, using level dollar amounts. Except for gains reserved for
43
VILLAGE OF T'EQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 11. FLORIDA RETIREMENT SYSTEM
Funding Policy
rate stabilization, it is anticipated that future actuarial gains and losses are amortized on a
rolling 10% basis, as a level dollar amount. The contribution rates by job class for the
Village's employees at September 30, 2008 were as follows: regular employees — 9.85%,
special risk employees — 20.92% and senior management — 13.12%. These rates include
1.11% for the employer Health Insurance Subsidy contribution, and 0.05% for an
administrative fee.
The Village's contributions to the FRS for the fiscal years ended September 30, 2006, 2007,
and 2008 were $137,827, $187,647 and $160,046 respectively, which were equal to the
required contributions for each fiscal year.
NOTE 12. VILLAGE EMPLOYEES' 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 Plans were
amended, establishing a separate plan for public safety officers (firefighters and police officers)
and a separate plan for general employees. The retirement system was established by the Village
and is administered by two separate Boards of Trustees (public safety officers and general
employees). The retirement system receives contributions that may not be used to pay the
benefits of all employee classes. Due to this restriction, for financial statement purposes, three
separate plans are shown as pension trust funds. The Village Employees' Retirement System
administers the following plans: The Public Safety Officers' Pension Trust Fund which includes
The Firefighters' Pension Trust Fund (FPTF), and The Police Officers' Pension Trust (PPTF) and
the General Employees' Pension Trust Fund (GPTF).
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Pension Trust Funds
Basis of Accounting
The pension trust funds are reported on the accrual basis of accounting. Plan member and
state contributions are recognized as revenues in the period that the contributions are due.
Employer contributions to each plan are recognized when due and the employer has made a
formal commitment to provide the contributions. Benefits and refunds are recognized
when due and payable in accordance with the terms of the plan.
Method Used to Value Investments
Investments are reported at fair value. Short-term investments are reported at cost which
approximates fair value. Securities traded on a national or international exchange are
valued at the last reported sales price at current exchange rates.
-44-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
SUMMARY OFSIGNIFICANTACCOUNTING POLICIES (Continued)
Pension Trust Funds (Continued)
Concentration of Investments
The Plans did not have any single investment of 5% or more of net assets in any one
organization.
PLANDESCRIPTIONAND CONTRIBUTIONINFORMATION
The following descriptions of the Pension Trust Funds are provided for general information
purposes only. Plan members should refer to the appropriate source documents for more
complete information on the plans.
Membership in each plan consisted of the following at September 30, 2008:
FPTF PPTF GPTF
Covered group:
Active members 19 12 36
Inactive members 1 - 1
Total 20 12 37
Benefit provisions and contribution requirements of plan members and the Village are
established, and may be amended, only by the Village Council.
a. Public Safety Officers' Trust Fund
Plan Description
Any firefighter or police officer who completes six or more years of credited service and
attains age 55, or completes 25 years of credited service and attains age 52, is eligible for
normal retirement benefits. The monthly retirement benefit shall be equal to 3% for the
first six (6) years of service, 3.5% for the next four (4) years of service, 4% for the next
five (5) years of service, 3% for the next six (6) years of service, 2% for the next four (4)
years of service and 3% for all years after twenty-five years of service. Early retirement
may be taken after a firefighter or police office attained the age of 50 and has six (6) years
of credited service. In the event of early retirement, benefits are actuarially reduced to take
into account the firefighter or police officer younger age and earlier commencement of
retirement benefits. Such reduction shall not exceed 3% per year. Disability benefits can
be received for total and permanent disabilities as determined by the Board of Trustees. If
the pension is granted, the benefit amount shall be as follows:
-45-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLAN DESCRIPTION AND CONTRIB UTION INFORMA TION (Continued)
a. Public Safety Officers' Trust Fund (Continued)
Plan Description (Continued)
If the injury or disease is service connected, the firefighter or police officer shall be entitled
to the greater of (a) or (b):
(a) A inonthly pension equal to 42% of his average monthly compensation as of his/her
disability retirement date, or
(b) The accrued normal retirement benefit.
If the injury or disease is not service connected, the firefighter or police officer shall be
entitled to the greater of (a) or (b):
(a) A monthly pension equal to 25% of his average monthly compensation as of his/her
disability retirement date, or
(b) The accrued normal retirement benefit.
If the firefighter or police officer dies prior to retirement from the Village, his beneficiary
shall receive the following benefit:
(a) Line -of -Duty -Death -Benefit — a pension to the spouse (or children) of 50% of
Average Final Compensation for life.
(b) Non -Line -of- Duty -Death — the spouse of a member with six years of credited service
will receive the actuarial equivalent of the accrued early or normal retirement benefit.
If the firefighter or police officer dies or terminates employment with less than six years of
credited service, he is entitled to a refund of the money he contributed.
Funding Policy
Effective September 5, 2008, Firefighters and Police Officers are required to contribute 5%
of their compensation to the plan. Prior to September 5, 2008, Firefighters contributed
6.1% to the Plan. The Village contributes the net proceeds of the excise tax (premium tax)
imposed upon casualty and property insurance premiums on policies written within the
Village. The Village is required to contribute an actuarially determined amount to fund the
plan using the aggregate actuarial cost method as approved by the plans' Board of
Trustees. The aggregate method does not separately identify or amortized the unfunded
actuarial liability.
The Firefighters' Pension Fund (part of the Public Safety Officers' Trust Fund) does not
issue separate stand alone financial statements. Therefore, included below is the Statement
of Fiduciary Net Assets and the Statement of Changes in Fiduciary Net Assets as of and for
the year ended September 30, 2008.
=46-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLANDESCRIPTIONAND CONTRIBUTION INFORMATION (Continued)
a. Public Safety Officers' Trust Fund (Continued)
Funding Policy (Continued)
FIREFIGHTERS' PENSION FUND
STATEMENT OF FIDUCIARY NET ASSETS
SEPTEMBER 30, 2008
ASSETS
Investments $ 3,065,137
Due from Broker 10,828
Accrued interest 12,414
Contributions receivable 79,072
Total assets 3,167,451
LIABILITIES AND NET ASSETS
Accounts payable 10,458
Due to other funds -
Total liabilities 10,458
Net assets held in trust for pension benefits
$ 3,156,993
FIREFIGHTERS' PENSION FUND
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FISCAL YEAR ENDED SEPTEMBER 30, 2008
ADDITIONS
Contributions
$ 364,496
Investment income, net
(406,714)
Total additions
(42,218)
DEDUCTIONS
Pension benefits and refunds
-
Operating expenses
19,060
Total deductions
19,060
Net increase
(61,278)
Net assets held in trust for pension benefits:
Net assets, beginning
3,218,271
Net assets, ending
$ 3,156,993
-47-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLANDESCRIPTIONAND CONTRIBUTION INFORMA TION (Continued)
a. Public Safety Officers' Trust Fund (Continued)
Funding Policy (Continued)
The Police Officers' Pension Fund (part of the Public Safety Officers' Trust Fund) does
not issue separate stand alone financial statements. Included below are the Statement of
Fiduciary Net Assets and the Statement of Changes in Fiduciary Net Assets as of and for
the year ended September 30, 2008.
POLICE OFFICERS' PENSION FUND
STATEMENT OF FIDUCIARY NET ASSETS
SEPTEMBER 30, 2008
ASSETS
Investments $1,147,889
Due from Broker 4,056
Accrued interest 4,650
Contribution receivable 5,411
Total assets 1,162,006
LIABILITIES AND NET ASSETS
Accounts payable 3,871
Due to other pensions -
Total liabilities 3,871
Net assets held in trust for pension benefits $1,158,135
POLICE OFFICERS' PENSION FUND
STATEMENT OF CIiANGES IN FIDUCIARY NET ASSETS
FISCAL YEAR ENDED SEPTEMBER 30, 2008
ADDITIONS
Contributions
$ 195,741
Investment income, net
(148,148
Total additions
47,593
DEDUCTIONS
Pension benefits and refunds
10,673
Operating expenses
6,821
Total deductions
17,494
Net increase
30,099
Net assets held in trust for pension benefits:
Net assets, beginning
1,128,036
Net assets, ending
$1,158,135
-48-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLANDESCRIPTIONAND CONTRIBUTIONINFORMATION(Continued)
b. General Employees' Pension Trust Fund
Plan Description
Any general employee who attains age 62, or completes 30 years of credited service
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 six (6) years of
credited service. In the event of early retirement, benefits are actuarially reduced to take
into account the general employee younger age and earlier commencement of retirement
benefits. Such reduction shall not exceed 5% per year. Disability benefits can be received
for total and permanent disabilities as determined by the Board of Trustees. If the pension
is granted, the benefit amount shall be as follows:
If the injury or disease is service connected, the general employee shall be entitled to the
greater of (a) or (b):
(a) A monthly pension equal to 42% of his average monthly compensation as of his
disability retirement date, or
(b) An amount equal to the number of years of his credited service multiplied by 2% of
his average monthly salary based upon his final five years of service.
If the injury or disease is not service connected, the general employee shall be entitled to
the greater of (a) or (b):
(a) A monthly pension equal to 25% of his average monthly compensation based on his
final five (5) years of service, or
(b) An amount equal to the number of years of his credited service multiplied by 2% of
his average monthly salary based upon his final five years of service.
If the general employee dies prior to retirement from the Village, his beneficiary shall
receive an amount equal to the vested pension benefit. A survivor benefit is payable to the
beneficiary starting when the member would have reached retirement age.
If the general employee dies or terminates employment with less than six years of credited
service, he is entitled to a refund of the money he contributed.
Funding Policy
General employees are required to contribute 5% of their compensation to the plan. The
Village is required to contribute the remaining amount to fund the plan using the aggregate
actuarial cost method as approved by the plan's Board of Trustees. The aggregate method
does not separately identify or amortize the unfunded actuarial liability.
-49-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLAN DESCRIPTIONAND CONTRIBUTION INFORMATION(Continued)
b. General Employees' Pension Trust Fund (Continued)
Funding Policy (Continued)
The General Employees' Pension Trust Fund does not issue separate stand alone financial
statements. Therefore, included below are the Statement of Fiduciary Net assets and the
Statement of Changes in Fiduciary Net Assets as of and for the year ended September 30,
2008.
GENERAL EMPLOYEES' PENSION TRUST FUND
STATEMENT OF FIDUCIARY NET ASSETS
SEPTEMBER 30, 2008
ASSETS
Cash $ 2,156
Investments 1,052,287
Accrued interest 5,074
Contributions receivable 10,136
Total assets 1,069,653
LIABILITIES AND NET ASSETS
Accounts payable 7,456
Due to general fund -
Total liabilities 7,456
Net assets held in trust for pension benefits $1,062,197
GENERAL EMPLOYEES' PENSION TRUST FUND
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FISCAL YEAR ENDED SEPTEMBER 30, 2008
ADDITIONS
Contributions
$ 211,723
Investment income, net
(128,368)
Total additions
83,355
DEDUCTIONS
Pension benefits and refunds
28,178
Operating expenses
19,876
Total deductions
48,054
Net increase
35,301
Net assets held in trust for pension benefits:
Net assets, beginning
1,026,896
Net assets, ending
$1,062,197
-50-
,VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLAN DESCRIPTIONAND CONTRIBUTION INFORMATION(Continued)
Annual Pension Cost
The Village's 2008 annual pension cost and actual contributions for each plan are shown
below. The required contributions were determined as part of the October 1, 2007 actuarial
valuation for each plan.
Fiscal Year Ending
Firefighters' Retirement System:
September 30, 2006
September 30, 2007
September 30, 2008
Police Officers' Retirement System:
September 30, 2006
September 30, 2007
September 30, 2008
General Employees' Retirement System:
September 30, 2006
September 30, 2007
September 30, 2008
Three -Year Trend Information
Annual Percentage Net Pension
Pension of APC Obligation
Cost (APC) Contributed Asset
$ 169,446
100.5%
$ (158,905)
176,060
105.1%
(167, 810)
210,494
97.9%
(163,478)
$ 108,774
98.3%
$ (89,209)
113,012
103.9%
(93,577)
64,360
187.0%
(149,587)
$ 89,226
102.2%
$ (44,396)
92,789
132.0%
(74,056)
98,847
132.2%
(105,874)
Components of Annual Pension Cost and Net Pension Asset
Annual required contribution (ARC)
Interest on net pension obligation (NPO)
Adjustment to ARC
Annual pension cost
Actual contributions
Increase (decrease) in net pension obligation (asset)
Net pension obligation (asset), beginning
Net pension obligation (asset), ending
-51-
Police General
Firefi hg tern' Officers' Employees
$ 206,162 $ 61,068 $ 95,972
(13,425) (7,486) (5,924)
(17,757) (10,778) (8,799)
210,494 64,360 98,847
206,162 120,370 130,665
4,332 (56,010) (31,818)
(167,810) (93,577) (74,056)
$ (163,478 $ (149,587) $ (105,874)
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLAN DESCRIPTIONAND CONTRIBUTIONINFORMATION(Continued)
Components of Annual Pension Cost and Net Pension Asset (Continued)
Valuation date
Actuarial cost method
Amortized method
Remaining amortization period
Asset valuation method
Actuarial assumptions:
Investment rate of return*
Projected salary increase*
*Includes inflation at
Cost of living adjustments
Market Value Market Value Market Value
8%
Police
General
Firefighters'
Officers'
Employees'
Pension
Pension
Pension
Fund
Fund
Fund
10/1/2007
10/1/2007
10/1/2007
Aggregate
Aggregate
Aggregate
N/A
N/A
N/A
N/A
N/A
N/A
Market Value Market Value Market Value
8%
8%
8%
6%
6%
6%
4%
4%
4%
N/A
N/A
N/A
(1) When the aggregate actuarial cost method is used, unfunded actuarial liabilities are not
identified or separately amortized; therefore, a schedule of funding progress is not required.
Funding Status and Funding Progress
The funded status of the plan as of October 1, 2007, the most recent actuarial valuation date,
is as follows:
Actuarial
Accrued
Actuarial
Liability
Unfunded
UAAL as a %
Value of
(AAL) -
AAL
Funded
Covered
of Covered
Assets
Entry Age*
(UAAL)
Ratio
Payroll
Payroll
(a)
(!?I
b - (a)a(
) / (b)
(c)
((b - a) / c)
Public Safety Pension Fund $4,080,609
$3,730,247
$ (350,362)
109.4%
$1,931,871
(18.1%)
General Employees Pension Fund 1,026,897
764,571
(262,326)
134.3%
1,500,201
(17.5%)
*Because the aggregate actuarial cost method does not identify or separately amortize unfunded actuarial liabilities,
information about the funded status and funding progress was prepared using entry age actuarial cost method and is
intended to serve as a surrogate for the funded status and funding progress.
The schedule of funding progress, presented as required supplementary information (RSI)
following the notes to the financial statements, presents multiyear trend information about
whether the actuarial values of plan assets are increasing or decreasing over time relative to
the AALs for benefits.
-52-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 13. COMMITMENTS AND CONTINGENCIES
Lease Agreements
On December 20, 1994, the Village entered into an Interlocal agreement with Palm Beach
County. Per the agreement, Palm Beach County provided for partial funding, land acquisition
and design and construction of a branch library within Tequesta. Upon completion of the
project, the library was leased to Palm Beach County for 50 years for an annual rent of one
dollar. In the event the Village terminates the lease before the end of 50 years, the Village
must reimburse Palm Beach County a depreciated value using a useful life of 25 years based
on an initial value of $405,000 calculated on a straight-line basis.
Contracted Services — Refuse and Recycling Collection
Effective October 1, 2007, the Village entered into a solid waste and recyclable collection
agreement with Waste Management Inc. of Florida for a period of five years beginning
October 01, 2007 and expiring September 30, 2012. With this agreement the Village granted
Waste Management the exclusive franchise for solid waste collection of residential,
commercial, industrial and roll -off refuse, recycling and vegetative waste. Beginning on
October 01, 2008 and on each October ls` thereafter, the rates shall be adjusted to reflect the
increase or decrease in CPI (preceding June to June). The CPI adjustment will be applied to
90% of the collection component of the rate. In addition, Waste Management shall annually
adjust the applicable rate charged to reflect any change in the cost of diesel fuel determined by
reference to EL4/DOE website that reports average prices and the fuel adjustment will be
applied to 10% of the collection component of the rate.
Contracted Services — Fire/Emergency Medical Service
Effective October 1, 1993, the Village entered into an Interlocal agreement with Jupiter Inlet
Colony for the Village to provide fire protection/emergency medical services for a fee. For
the year ended September 30, 2008, fire protection fees received from Jupiter Inlet Colony
were $196,338.
Construction Commitments
Significant construction commitments as of September 30, 2008 are as follows:
Estimated Estimated
Expended Cost to Completion
Description to Date Complete Date
Governmental Funds
Capital Projects Fund:
Bridge Utility Relocation - A&E $ 5,125 $ 40,700 Mar -09
Beach Road Water Main Replacement 7,500 13,000 Apr -09
Beach Road Water' Main' Replacement Construction - 81,000 Apr -09
Water Plant Expansion = A&E 18,500 92,500 Jun -09
-53-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 14. RISK MANAGEMENT
The Village is exposed to various risks of loss related to torts, theft of, damage to and destruction
of assets, errors and omissions, injuries to employees and natural disasters. The Village
purchases commercial insurance to cover the various risks. While the Village cannot anticipate
the areas in which potential claims may arise, the Village purchases commercial insurance to
protect against areas of possible exposure germane to municipal entities such as property,
liability, automobile, workers' compensation, crime, storage tank, inland marine and railroad
coverage. Deductibles and limits vaiy by coverage and are secured based upon the Village's
tolerance of risk retention in each area.
Keeping with Village Council's prior direction, the property deductible remains at $100,000 for
all perils excluding hurricane/windstorm damage. The named storm deductible is as follows: 5%
of the value of the damaged properties per building/per occurrence, subject to the policy
deductible, whichever is greater. The Village continues to self insure all properties valued less
than $100,000.
The Village remains fully insured with the FMIT for workers' compensation coverage with
statutory limits. Premiums are based upon risk class and remuneration of covered employees
adjusted by an experience modification factor which includes three prior years of claims history.
At the end of each fiscal year, the plan is audited and the Village can either receive a return of
premium or be required to pay additional premium based upon actual versus estimated payroll.
As such, the Village received a return of premium credit of $32,066.
NOTE 15. JOINT VENTURE
The Village, in conjunction with six other municipalities, organized a consortium to provide
mutual fire and emergency aid. The consortium is known as the Northern Area Mutual Aid
Consortium (NAMAC). During 1999, the consortium purchased equipment and supplies as well
as collected contributions. The consortium does not issue separate financial statements. The
Village has not been obligated to contribute any funds to the consortium since its inception in
1999.
NOTE 16. GASB 45 ACCOUNTING AND FINANCIAL REPORTING BY EMPLOYERS FOR
POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS
The Village of Tequesta will implement GASB 45 in fiscal year ending September 30, 2009.
NOTE 17. SUBSEQUENT EVENT
The Improvement Revenue Refunding Bond, Series 1994, was created to account for revenues
and expenditures as required by the bond document. On June 8, 2008, the bonds were refunded
in full using existing cash. The remaining assets of $139.490 were transferred to the General
Fund #001 as directed by Resolution No. 55-08.
-54-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 17. SUBSEQUENT EVENT (Continued)
On December 11, 2008, the Village Council of the Village of Tequesta approved a resolution
closing the Improvement Revenue Refunding Bond (IBR) fund #101.
&SM
No Text
No Text
VILLAGE OF TEQUESTA, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2008
Revenues:
Ad valorem taxes
Other taxes
Intergovernmental
Franchise fees
Charges for services
Intragovernmental
Grants and contributions
Licenses and permits
Investment earnings
Fines and forfeitures
Miscellaneous
Rents and royalties
Impact fees
Total revenues
Expenditures:
Current:
General government
Public safety
Transportation
Leisure services
Capital outlay
Debt service:
Principal
Interest
Fiscal charges
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Variance
with Final
Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 5,575,100 $ 5,575,100 $ 5,661,200 $ 86,100
865,800
1,094,973
1,123,272
28,299
826,050
826,050
783,034
(43,016)
-
-
44,270
44,270
564,228
564,228
574,938
10,710
280,100
280,100
280,100
-
1,500
24,507
18,711
(5,796)
393,800
393,800
299,059
(94,741)
149,115
97,742
141,604
43,862
38,500
38,500
40,079
1,579
7,835
7,835
38,242
30,407
112,680
112,680
103,627
(9,053)
10,700
10,700
2,575
8,125
8,825,408
9,026,215
9,110,711
84,496
1,403,115
1,369,512
1,220,238
149,274
5,377,395
5,765,882
5,439,202
326,680
774,060
817,165
692,552
124,613
562,150
568,180
467,740
100,440
117,500
214,332
172,579
41,753
303,570
312,885
312,896
(11)
186,985
184,375
184,246
129
6,000
6,000
5,890
110
8,730,775
9,238,331
8,495,343
742,988
94,633 (212,116) 615,368 827,484
Transfers in 473,700 473,700 473,700 -
Transfers out (330,000) (330,000) (330,000) -
Appropriated fund balance (228,333) 68,641 - (68,641)
Miscellaneous/contingency (101000) (225) - 225
Total other financing sources (uses) (94,633) 21.2,116 143,700 (68,416
Net change in fund balance $ - $ - $ 759,068 $ 759,068
See note to budgetary comparison schedule.
-56-
VILLAGE OF TEQUESTA, FLORIDA
NOTE TO THE BUDGETARY COMPARISON SCHEDULE
FISCAL YEAR ENDED SEPTEMBER 30, 2008
NOTE 1. BUDGETS AND BUDGETARY ACCOUNTING
Formal budgetary integration is employed as a management control device during the year for the
General Fund, Special Revenue Fund and Capital Projects Funds. All budgets are legally enacted
through passage of an ordinance.
Budgets are adopted on a basis consistent with accounting principles generally accepted in the
United States. For budgeting purposes, current year encumbrances are not treated as
expenditures.
The Village follows these procedures in establishing the budgetary data reflected in the financial
statements:
1) Prior to September 1St, 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 1St, the budget is legally enacted through passage of an ordinance.
Changes or amendments to the total budgeted fund expenditures must be approved by the Village
Council. Management may make unlimited interfunctional transfers within a fund without
seeking Council approval. However, in order to make the most effective use of the budgetary
process, it is the policy of the Village to make as few budget adjustments as possible. Budget
amendments were not material in relation to original appropriations. During the year,
supplemental appropriations of approximately $276,175 were made. Appropriations are legally
controlled at the fund level and expenditures may not legally exceed budgeted appropriations at
that level. Appropriations lapse at year end.
51FA
VILLAGE OF TEQUESTA, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF EMPLOYER CONTRIBUTIONS
FISCAL YEAR ENDED SEPTEMBER 30, 2008
Fiscal
Year
Firefighters' Pension Fund
2003
2004
2005
2006
2007
2008
Police Officers' Pension Fund
2003
2004
2005
2006
2007
2008
General Employees' Pension Fund
2002
2003
2004
2005
2006
2007
2008
Annual
Required Village State Percentage
$ 114,382
$ 76,957
$ 59,123
119.0%
139,739
82,036
56,536
99.2%
145,344
115,072
92,522
142.8%
165,394
102,194
86,714
114.2%
171,986
116,915
136,052
147.1%
206,162
127,844
158,602
138.9%
$ 38,594
$ 15,906
$ 53,639
180.2%
56,225
20,391
67,950
157.1%
58,489
49,002
65,700
196.1%
106,969
70,169
65,700
127.0%
111,243
87,635
73,932
145.2%
61,068
87,240
70,571
142.9%
$ 41,607
$ 48,124
N/A
115.7%
64,723
69,869
N/A
108.0%
92,218
74,110
N/A
80.4%
95,949
98,658
N/A
102.8%
88,512
108,015
N/A
122.0%
92,042
122,449
N/A
133.0%
95,972
130,665
N/A
136.1%
-58-
VILLAGE OF TEQUESTA, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS
FISCAL YEAR ENDED SEPTEMBER 30, 2008
Public Safety
10/01/98
Actuarial
$ 532,439
$ (402,220)
175.5%
Accrued
(41.6%)
10/01/00
Actuarial
Liability
Unfunded
UAAL as a %
Actuarial Value of
(AAL) -
AAL Funded Covered
of Covered
Valuation Assets
Entry Age'`
(URAL) Ratio Payroll
Payroll
Date (a)
10/01/03*
b -a a( )/(b) Uc -
((b - a) / c)
Public Safety
10/01/98
$ 934,659
$ 532,439
$ (402,220)
175.5%
$ 967,853
(41.6%)
10/01/00
1,683,867
834,839
(849,028)
201.7%
1,203,923
(70.5%)
10/01/02
1,875,657
1,428,869
(446,788)
131.3%
2,132,437
(21.0%)
10/01/03*
1,966,148
1,610,963
(355,185)
122.0%
1,339,667
(26.5%)
10/01/05
2,782,953
2,598,331
(184,622)
107.1%
1,650,403
(11.2%)
10/01/07
4,080,609
3,730,247
(350,362)
109.4%
1,931,871
(18.1%)
*Start Public Safety Plan only
General Employees
10/01/98
$ 934,659
$ 532,439
$ (402,220)
175.5%
$ 967,853
(41.6°/x)
10/01/00
1,683,867
834,839
(849,028)
201.7%
1,203,923
(70.5°/x)
10/1/20021`
248,725
222,882
(25,843)
111.6%
866,467
(3.0%)
10/01/03
333,944
264,486
(69,458)
126.3%
1,056,797
(6.5%)
10/01/05
602,280
429,242
(173,038)
140.3%
1,098,039
(15.8%)
10/01/07
1,026,897
764,571
(262,326)
134.3%
1,500,201
(17.5%)
*Start General Plan only
-59-
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
No Text
NONMAJOR GOVERNMENTAL FUNDS
No Text
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Special revenue funds are used to account for specific revenues that are legally restricted
to expenditures for particular purposes.
Special Revenue Fund — This fund was established to collect and accumulate certain
revenues from Franchise fees and Occupational Licenses to pay principal and interest on
the 1994 Series Improvement Revenue Refunding Bonds.
Special Law Enforcement Trust Fund — This fund is used to account for forfeitures
received by the Police Department.
Capital Improvement Fund — This fund is used to account for the maintenance and
upkeep of the Village's general infrastructure (such as roads, bridges, sidewalks and
storm water drainage systems) and streetscape beautification projects.
Capital Projects Fund — This fund is used to account for the acquisition or construction
of major capital projects.
No Text
VILLAGE OF TEQUESTA, FLORIDA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2008
LIABILITIES AND FUND BALANCES
Liabilities:
Deferred revenue $ 55,412 $ - $ - $ - $ 55,412
Total liabilities 55,412 - - - 55,412
Fund balances:
Reserved for encumbrances
Unreserved, designated:
Bridge repair
Unreserved, undesignated reported in:
Special revenue fund
Special law enforcement fund
Capital improvement fund
Capital projects fund
Total fund balances
Total liabilities and fund balances
- 12,752 12,752
330,000 - 330,000
369,490 - - - 369,490
- 22,037 - - 22,037
- - 95,006 - 95,006
- - - 378,505 378,505
369,490 22,037 425,006 391,257 1,207,790
$ 424,902 $ 22,037 $ 425,006 $ 391,257 $ 1,263,202
-60-
Total
Special
Special Law
Capital
Capital
Nonmajor
Revenue
Enforcement
Improvement
Projects
Governmental
Fund
Fund
Fund
Fund
Funds
ASSETS
Assets:
Cash and cash equivalents
$ 424,902
$ 22,037
$ 425,006
$ 391,257
$ 1,263,202
Accounts receivable
-
-
-
-
-
Total assets
$ 424,902
$ 22,037
$ 425,006
$ 391,257
$ 1,263,202
LIABILITIES AND FUND BALANCES
Liabilities:
Deferred revenue $ 55,412 $ - $ - $ - $ 55,412
Total liabilities 55,412 - - - 55,412
Fund balances:
Reserved for encumbrances
Unreserved, designated:
Bridge repair
Unreserved, undesignated reported in:
Special revenue fund
Special law enforcement fund
Capital improvement fund
Capital projects fund
Total fund balances
Total liabilities and fund balances
- 12,752 12,752
330,000 - 330,000
369,490 - - - 369,490
- 22,037 - - 22,037
- - 95,006 - 95,006
- - - 378,505 378,505
369,490 22,037 425,006 391,257 1,207,790
$ 424,902 $ 22,037 $ 425,006 $ 391,257 $ 1,263,202
-60-
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2008
Operating revenues:
Franchise fees
Local business tax
Grants and contributions
Investment earnings
Fines and forfeitures
Total revenues
Operating expenditures:
Capital outlay
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances, beginning
Fund balances, ending
Total
Special Special Law Capital Capital Nonmajor
Revenue Enforcement Improvement Projects Governmental
Fund Fund Fund Fund Funds
$ 418,026 $ - $
87,167 -
10,507 491
- 700
515,700 1,191
259,846
15,990
275,836
$ - $ 418,026
87,167
57,736 57,736
- 10,998
- 700
57,736 574,627
8,143 76,651 84,794
259,846
- - 15,990
8,143 76,651 360,630
239,864
1,191 (8,143)
(18,915 213,997
120,600
- 330,000
- 450,600
(473,700)
- -
- (473,700)
(353,100)
- 330,000
- (23,100)
(113,236)
1,191 321,857
(18,915) 190,897
482,726
20,846 103,149
410,172 1,016,893
$ 369,490 $ 22,037 $ 425,006 $391,257 $ 1,207,790
-61-
VILLAGE OF TEQUESTA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
SPECIAL REVENUE FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2008
Revenues:
Franchise fees
Other taxes
Unrestricted investment earnings
Total revenues
Operating expenditures:
Debt service:
Principal
Interest
Total expenditures
Excess of revenues over expenditures
Other financing sources:
Transfers in
Transfers out
Appropriated fund balance
Total other financing sources (uses)
Net change in fund balance
-62-
125,000
259,850
259,846 4
Variance
15,990
15,990 -
140,990
with
275,836 4
Final
366,400
231,550
239,864 8,314
Budget -
Budgeted
Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 395,000
$ 395,000
$ 418,026
$ 23,026
90,000
90,000
87,167
(2,833)
22,390
22,390
10,507
(11,883)
507,390
507,390
515,700
8,310
125,000
259,850
259,846 4
15,990
15,990
15,990 -
140,990
275,840
275,836 4
366,400
231,550
239,864 8,314
60,300 120,600 120,600 -
(473,700) (473,700) (473,700) -
47,000 121,550 - (121,550)
(366,400) (231,550) (353,100) (121,550)
$ (113,236) $ (113,236)
VILLAGE OF TEQUESTA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
SPECIAL LAW ENFORCEMENT TRUST FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2008
Revenues:
Forfeitures/confiscations
Unrestricted investment earnings
Total revenues
Operating expenditures
Net change in fund balance
-63-
Variance
with
Final
Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 700 $ 700
- 491 491
- - 1,191 1,191
$ 1,191 $ 1,191
VILLAGE OF TEQUESTA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
CAPITAL IMPROVEMENT FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2008
Revenues
Expenditures:
Capital outlay
Total expenditures
Deficiency of revenues over expenditures
Other financing sources (uses):
Transfers in
Allocated fund balance
Total other financing sources (uses)
Net change in fund balance
021
Variance
With
Final
Budget -
Budgeted
Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
90,000
90,000
8,143
81,857
90,000
90,000
8,143
81,857
(90,000)
(90,000)
(8,143)
81,857
330,000
330,000
330,000
-
(240,000)
(240,000)
-
240,000
90,000
90,000
330,000
240,000
$ -
$ -
$ 321,857
$ 321,857
VILLAGE OF TEQUESTA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
CAPITAL PROJECTS FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2008
Revenues
Expenditures:
Capital outlay
Total expenditures
Deficiency of revenues over expenditures
Other financing sources (uses):
Appropriated fund balance
Total other financing sources (uses)
Net change in fund balance
-65-
Variance
with
Final
Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 212,500 $ 212,500 $ 57,736 $ (154,764)
(212,500) (267,936) (76,651) 191,285
(212,500) (267,936) (76,651) 191,285
(55,436 (18,915) 36,521
- 55,436 - (55,436)
- 55,436 - (55,436)
$ - $ - $ (18,915) $ (18,915)
NONMAJOR ENTERPRISE FUNDS
No Text
NONMAJOR ENTERPRISE FUNDS
Stormwater Fund — This fund is used to account for the drainage and stormwater
collection for the Village.
Refuse and Recycling Fund — This fund is used to account for the fees charged for solid
waste and recyclable material collection.
1
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF NET ASSETS
NONMAJOR ENTERPRISE FUNDS
SEPTEMBER 30, 2008
ASSETS
Current assets:
Cash and cash equivalents
Investments
Receivables, net
Inventories
Other assets
Restricted assets:
Investments
Total current assets
Non-current assets:
Capital assets being depreciated, net
Total noncurrent assets
Total assets
LIABILITIES
Current liabilities:
Accounts payable
Total current liabilities
Non-current liabilities:
Compensated absences
Total non-current liabilities
Total liabilities
NET ASSETS
Net assets:
Invested in capital assets, net of related debt
Unrestricted
Total net assets
••
Total
Nonmajor
Stormwater Refuse & Enterprise
Utili Recycling Funds
$ 24,083 $ 7,600 $ 31,683
180,607
136,023
316,630
4,424
3,451
7,875
108
-
108
296
-
296
6,960
6,899
13,859
216,478
153,973
370,451
1,717,284
-
1,717,284
1,717,284
-
1,717,284
1,933,762
1537973
2,087,735
4,533 - 4,533
4,533 - 4,533
1,854
- 1,854
1,854
- 1,854
6,387
- 6,387
1,717,284 - 1,717,284
210,091 153,973 364,064
$1,927,375 $153,973 $2,081,348
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
NONMAJOR ENTERPRISE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2008
Operating revenues:
Charges for services
Total operating revenues
Operating expenses:
Stormwater
Depreciation
Purchased services
Management services
Total operating expenses
Operating income (loss)
Non-operating revenues:
Investment earnings
Unrealized loss on investments
Total non-operating revenues
Income (loss) before contributions and transfers
Transfers out
Change in net assets
Net assets, beginning
Net assets, ending
1011!
84,566 (17,642) 66,924
8,390
8,706
Total
(1,490)
(1,606)
Nonmajor
Stormwater
Refuse &
Enterprise
Vfilijy
Recycling
Funds
$ 299,729
$ 402,439
$ 702,168
299,729
402,439
702,168
109,620
-
109,620
96,043
-
96,043
-
414,481
414,481
9,500
5,600
15,100
215,163
420,081
635,244
84,566 (17,642) 66,924
8,390
8,706
17,096
(1,490)
(1,606)
(3,096)
6,900
7,100
14,000
91,466 (10,542) 80,924
(120,600) - (120,600)
(29,134) (10,542) (39,676)
1,956,509 164,515 2,121,024
$1,927,375 $153,973 $2,081,348
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2008
Adjustments to reconcile operating income to net cash
provided by operating activities:
Operating income (loss)
$ 84,566
$ (17,642)
Total
Depreciation
96,043
-
Nonmaj or
Changes in operating assets and liabilities:
Stormwater
Refuse &
Enterprise
(Increase) decrease in:
Utili
Recycling
Funds
Cash flows from operating activities:
118
(768)
(650)
Cash received from customers, governments and other funds
$ 299,847
$ 401,671
$ 701,518
Cash paid to suppliers
(67,932)
(445,603)
(513,535)
Cash paid to employees
(47,617)
-
(47,617)
Net cash provided by (used in) operating activities
184,298
(43,932)
140,366
Cash flows from non -capital financing activities:
Transfers to other funds
(120,600)
-
(120,600)
Net cash used in non -capital financing activities
(120,600)
-
(120,600)
Cash flows from capital and related financing activities:
Acquisition and construction of capital assets
(26,062)
-
(26,062)
Net cash used in capital and related financing activities
(26,062)
-
(26,062)
Cash flows from investing activities:
Purchases (sales) of investments
(21,775)
44,179
22,404
Interest received on investments
6,900
7,100
14,000
Net cash provided by (used in) investing activities
(14,875)
51,279
36,404
Net increase in cash and cash equivalents
22,761
7,347
30,108
Cash and cash equivalents, beginning
1,322
253
1,575
Cash and cash equivalents, ending
$ 24,083
$ 7,600
$ 31,683
Adjustments to reconcile operating income to net cash
provided by operating activities:
Operating income (loss)
$ 84,566
$ (17,642)
$ 66,924
Depreciation
96,043
-
96,043
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable
118
(768)
(650)
Inventories
(108)
(108)
Other assets
(296)
-
(296)
Increase (decrease) in accounts payable and accrued liabilities
3,975
(25,522)
(21,547)
Net cash provided by operating activities
$ 184,298
$ (43,932)
$140,366
-68-
Page Intentionally Left Blank
� •� i
No Text
FIDUCIARY FUNDS
Firefighters' Pension Trust Fund — This fund accounts for the accumulation of
resources and for contributions and benefits of the firefighter employees.
Police Officers' Pension Trust Fund — This fund accounts for the accumulation of
resources and for contributions and benefits of the police employees.
General Employees' Trust Fund — This fund accounts for the accumulation of
resources and for contributions and benefits for the general employees of the Village.
No Text
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
SEPTEMBER 30, 2008
ASSETS
Cash and cash equivalents
Investments:
Corporate stocks
Corporate bonds
Government backed assets
Due from broker
Contributions receivable
Accrued interest receivable
Total assets
LIABILITIES AND NET ASSETS
Accounts payable
Total liabilities
Net assets held in trust for pension benefits
Police General
Firefighters' Officers' Employees'
Pension Pension Pension Total
$ 263,280 $ 98,598 $ 23,760 $ 385,638
1,591,363
595,963
680,631
2,867,957
342,519
128,273
79,920
550,712
867,975
325,055
270,132
1,463,162
10,828
4,056
-
14,884
79,072
5,411
10,136
94,619
12,414
4,650
5,074
22,138
3,167,451
1,162,006
1,069,653
5,399,110
10,458
3,871
7,456
21,785
10,458
3,871
7,456
21,785
$ 3,156,993
$1,158,135
$1,062,197
$ 5,377,325
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2008
ADDITIONS
Contributions:
Employer
Employee
Total contributions
Investment income
Net depreciation in fair value of investments
Investment earnings
Less investment expenses
Net investment loss
Total additions
DEDUCTIONS
Pension benefits and refunds
Operating expenses
Total deductions
Net increase (decrease)
Net assets held in trust for pension benefits:
Net assets, beginning
3,218,271 1,128,036 1,026,896 5,373,203
Net assets, ending $ 3,156,993 $1,158,135 $1,062,197 $5,377,325
-70-
Police
General
Firefighters'
Officers'
Employees'
Pension
Pension
Pension
Total
$ 286,446
$ 157,811
$ 130,665
$ 574,922
78,050
37,930
81,058
197,038
364,496
195,741
211,723
771,960
(463,307)
(168,628)
(144,484)
(776,419)
81,706
29,528
30,866
142,100
(381,601)
(139,1.00)
(113,618)
(634,319)
25,113
9,048
14,750
48,911
(406,714)
(148,148)
(128,368)
(683,230)
(42,218)
47,593
83,355
88,730
-
10,673
28,178
38,851
19,060
6,821
19,876
45,757
19,060
17,494
48,054
84,608
(61,278)
30,099
35,301
4,122
3,218,271 1,128,036 1,026,896 5,373,203
Net assets, ending $ 3,156,993 $1,158,135 $1,062,197 $5,377,325
-70-
í
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No Text
STATISTICAL SECTION
This part of the Village of Tequesta's Comprehensive Annual Financial Report presents detailed information as
a context for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the Village overall financial health.
Contents
Paze
Financial Trends
These schedules contain trend information to help the reader understand how the Village's financial
performance and well-being have changed over time. 71-73
Revenue Capacity
These schedules contain information to help the reader assess the Village most significant local
revenue source, the property tax. 74-78
Debt Capacity
These schedules present information to help the reader assess the affordability of the Village current
levels of outstanding debt and the Town's ability to issue additional debt in the future 79-88
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the Village's financial activities take place. 89-90
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the
information in the Village's financial report relates to the services the Village provides and the
activities it performs. 91-92
Sources: Unless other wise noted, the information in these schedules is derived from the Comprehensive
Annual Financial Reports for the relevant year.
Governmental activities:
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total governmental activities net assets
Business -type activities:
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total business -type activities net assets
Primary government:
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total governmental activities net assets
VILLAGE OF TEQUESTA, FLORIDA
NET ASSETS BY COMPONENT
LAST SIX FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
SCHEDULE 1
2003 2004 2005 2006 2007 2008
$ 2,209,191 $ 921,889 $ 1,788,749 $ 4,515,096 $ 6,679,855 $ 6,959,332
- - - 143,370 140,990 -
4,423,513 4,947,838 6,926,208 5,570,447 5,402,774 6,459,522
$ 6,632,704 $ 5,869,727 $ 8,714,957 $10,228,913 $12,223,619 $13,418,854
$10,561,209 $ 9,602,911 $10,815,151 $11,722,188 $14,513,500 $14,082,989
317,193 322,818 317,102 396,369 328,544 -
4,843,781 5,901,624 4,604,463 4,867,905 3,046,229 3,581,512
$15,722,183 $15,827,353 $15,736,716 $16,986,462 $17,888,273 $17,664,501
$12,770,400 $10,524,800 $12,603,900 $16,237,284 $21,193,355 $21,042,321
317,193 322,818 317,102 539,739 469,534 -
9,267,294 10,849,462 11,530,671 10,438,352 8,449,003 10,041,034
$22,354,887 $21,697,080 $24,451,673 $27,215,375 $30,111,892 $31,083,355
Note: The Village began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003.
-71-
VILLAGE OF TEQUESTA, FLORIDA
CHANGES IN NET ASSETS
Expenses:
Governmental activities:
General government
Public safety
Transportation
Leisure services
Interest on long-term debt
Total governmental activities expenses
Business -type activities:
Water
Stormwater
Refuse and recycling
Community development
Total business -type activities expenses
Total primary government program expenses
Program revenues:
Governmental activities:
Charges for services:
General government
Public safety
Transportation
Leisure services
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business -type activities:
Charges for services:
Water
Stormwater
Refuse and recycling
Community development
Operating grants and contributions
Capital grants and contributions
Total business -type activities program revenues
Total primary government program revenues
LAST SIX FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
2003 2004 2005 2006 2007 2008
$ 1,299,812 $ 1,105,741 $ 1,361,013 $ 1,402,535 $ 1,391,654 $ 1,344,038
474,134 4,138,374 4,691,063 5,577,243 5,634,834 5,784,245
3,649,803 804,523 656,158 837,441 766,226 736,844
385,192 458,659 605,745 756,224 559,583 539,450
277,855 262,479 248,728 243,871 229,074 206,126
6,086,796 6,769,776 7,562,707 8,817,314 8,581,371 8,610,703
3,881,752 3,975,766 4,026,027 4,187,257 4,139,784 3,760,426
278,442 155,537 142,788 198,993 188,709 215,163
229,460 252,933 260,715 270,887 306,347 420,081
593,105 513,101 - - - -
4,982,759 4,897,337 4,429,530 4,657,137 4,634,840 4,395,670
$11,069,555 $11,667,113 $11,992,237 $13,474,451 $13,216,211 $13,006,373
$ 352,901 $ 439,646 $ 260,647 $ 270,137 $ 278,215 $ 475,244
477,041 538,056 1,040,427 1,121,642 1,006,947 863,391
- - - - - 12
63,438 42,430 4,410 57,261 54,364 50,219
56,517 43,945 515,438 365,183 20,350 18,711
- - - 535,000 54,764 57,736
949,897 1,064,077 1,820,922 2,349,223 1,414,640 1,465,313
4,082,459 3,931,562 4,037,674 4,090,268 3,850,508 3,463,564
297,843 303,450 298,188 301,993 303,273 299,729
242,901 248,252 277,589 283,821 285,917 402,439
628,068 348,511 - - - -
- - - 42,471 7,827 -
- - 119,944 484,000 430,000 -
5,251,271 4,831,775 4,733,395 5,202,553 4,877,525 4,165,732
$ 6,201,168 $ 5,895,852 $ 6,554,317 $ 7,551,776 $ 6,292,165 $ 5,631,045
-72-
SCHEDULE 2
VILLAGE OF TEQUESTA; FLORIDA
CHANGES IN NET ASSETS
(Continued)
LAST SIX FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Business -type activities:
Unrestricted investment earnings
2003
2004
2005
2006
2007
2008
Net (expense) revenue:
10,917
82,576
151,487
479,145
397,708
39,955
Governmental activities
$ (5,136,899)
$ (5,705,699)
$ (5,741,785)
$ (6,468,091)
$ (7,166,731)
$ (7,145,390)
Business -type activities
268,512
(65,562)
303,865
545,416
242,685
(229,938)
Total primary government net expense
$ (4,868,387)
$ (5,771,261)
$ (5,437,920)
$ (5,922,675)
$ (6,924,046)
$ (7,375,328)
General revenues and other changes in net assets:
6,341,051
5,113,454
7,741,914
8,686,377
9,820,563
8,346,791
Governmental activities:
Taxes:
432,770
(762,977)
2,394,630
1,513,956
1,994,706
1,195,235
Property taxes
$ 3,392,623
$ 3,781,095
$ 4,494,713
$ 5,166,754
$ 6,139,007
$ 5,661,200
Other taxes
1,093,877
1,089,781
1,084,827
1,087,759
1,157,128
1,123,272
Franchise fees based on gross receipts
350,423
372,212
367,778
419,929
477,711
462,296
Intergovernmental
520,921
558,069
622,457
679,001
815,828
783,034
Unrestricted investment earnings
89,532
79,483
214,588
392,961
404,816
152,602
Miscellaneous revenues
123,740
83,126
641,901
173,362
106,647
37,621
Gain (loss) on sale of capital assets
6,400
(1,012,584)
-
1,981
-
-
Transfers
(7,847)
(8,460)
710,151
60,300
60,300
120,600
Total governmental activities
5,569,669
4,942,722
8,136,415
7,982,047
9,161,437
8,340,625
Business -type activities:
Unrestricted investment earnings
70,706
75,846
164,163
280,665
321,718
86,811
Miscellaneous revenues
10,917
82,576
151,487
479,145
397,708
39,955
Gain on sale of capital assets
681,912
3,850
(710,151)
4,820
-
-
Transfers
7,847
8,460
-
(60,300
(60,300)
(120,600)
Total business -type activities
771,382
170,732
(394,501)
704,330
659,126
6,166
Total primary government
6,341,051
5,113,454
7,741,914
8,686,377
9,820,563
8,346,791
Change in net assets:
Governmental activities
432,770
(762,977)
2,394,630
1,513,956
1,994,706
1,195,235
Business -type activities
1,039,894
105,170
(90,636)
1,249,746
901,811
(223,772)
Total primary government
$ 1,472,664
$ (657,807)
$ 2,303,994
$ 2,763,702
$ 2,896,517
$ 971,463
Note: The Village began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003.
-73-
SCHEDULE2
(Continued)
VILLAGE OF TEQUESTA, FLORIDA
PROGRAM REVENUES BY FUNCTION/PROGRAM
Function/Program
Governmental activities:
General government
Public safety
Transportation
Leisure services
Subtotal governmental activities
Business -type activities:
Water
Community development
Stormwater
Refuse and recycling
Subtotal business -type activities
Total primary government program revenues
LAST SIX FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
SCHEDULE 3
Program Revenues
2003 2004 2005 2006 2007 2008
$ 352,902 $ 439,646 $ 260,647 $ 605,137 $ 278,215 $ 481,014
533,558 582,001 1,058,235 1,145,871 1,008,219 863,614
- 42,430 497,630 305,691 19,078 12,730
63,438 - 4,410 292,524 109,128 107,955
949,898 1,064,077 1,820,922 2,349,223 1,414,640 1,465,313
4,082,459 3,931,562 4,157,618 4,616,739 4,288,335 3,463,564
628,068 348,511 - - - -
297,843 303,450 298,188 301,993 303,273 299,729
242,901 248,252 277,589 283,821 285,917 402,439
5,251,271 4,831,775 4,733,395 5,202,553 4,877,525 4,165,732
$ 6,201,169 $ 5,895,852 $ 6,554,317 $ 7,551,776 $ 6,292,165 $ 5,631,045
Note: In fiscal year 2005 Community Development was closed as a business -type function/program and all related activates is now
accounted for as a governmental program/activity.
Note: The Village began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003.
-74-
General fund:
Reserved
Unreserved
Total general fund
All other governmental funds:
Reserved
Unreserved, reported in:
Capital projects funds
Special revenue funds
Capital Improvement fund
Special Law Enforcement fund
VILLAGE OF TEQUESTA, FLORIDA
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
SCHEDULE 4
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
$ 201,546
$ 196,217
$ 202,585
$ 146,557
$ 43,745
$ 50,509
$ 56,759
$ 176,410
$ 47,493
$ 82,196
1,728,185
2,878,834
2,656,696
2,943,229
3,170,436
3,718,380
3,424,408
3,221,390
4,456,247
5,180,612
1,929,731
3,075,051
2,859,281
3,089,786
3,214,181
3,768,889
3,481,167
3,397,800
4,503,740
5,262,808
122,627
267,549
122,627
1,030,617
155,645
341,722
823,675
143,370
196,426
12,752
230,631
80,781
1,091,185
1,557,927
1,069,670
889,395
2,519,033
1,599,416
354,736
378,505
75,874
118,738
141,912
175,980
237,858
15,692
17,901
255,179
341,736
369,490
-
-
-
-
-
-
-
-
103,149
425,006
-
-
-
-
-
-
-
-
20,846
22,037
$ 429,132
$ 467,068
$1,355,724
$2,764,524
$1,463,173
$1,246,809
$3,360,609
$1,997,965
$1,016,893
$1,207,790
Note: In fiscal year 2007, started a breakdown of unreserved of other governmental funds.
-75-
Revenues:
Taxes
Intergovernmental
Charges for services
Intragovernmental
Franchise fees based on gross receipts
Grants
Licenses and permits
Interest
Fines and forfeitures
Miscellaneous
Rents and royalties
Impact fees
Total revenues
Expenditures:
Current:
General government
Public safety
Transportation
Leisure services
Capital outlay
Debt service:
Principal
Interest
Fiscal charges
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfers in
Transfers out
Other proceeds
Total other financing sources (uses)
Net change in fund balances
Debt service as a percentage of noncapital expenditures
VILLAGE OF TEQUESTA, FLORIDA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
1999 2000 2001 2002 2003 2004 2005
SCHEDULE5
2006 2007 2008
$3,784,810 $3,962,782 $4,102,022 $4,502,446 S 4,836,923 $5,243,088 $5,579,540 $ 6,254,513 $7,296,135 $6,871,639
532,558 644,679 573,933 638,106 575,986 596,947 622,457 679,001 815,828 783,034
300,073 264,018 302,072 382,650 362,663 477,513 490,995 507,702 526,922 574,938
207,487 232,833 252,756 327,270 337,490 341,700 254,898 262,700 273,150 280,100
- - - - - - 367,778 419,929 477,711 462,296
- - - 142,207 56,517 43,945 515,438 900,183 90,398 76,447
104,428 96,975 83,702 108,429 103,564 93,601 549,884 631,521 401,704 299,059
132,621 236,148 193,208 84,693 83,166 79,483 214,588 392,961 404,816 152,602
58,936 45,675 47,351 68,758 58,467 57,413 352,254 34,825 111,080 40,779
13,795 18,129 46,116 46,423 80,494 83,126 289,647 175,343 52,899 38,242
- - - - - - - - 108,628 103,627
95,288 29,225 4,084 44,320 32,143 11,028 9,707 12,292 3,858 2,575
5,229,996 5,530,464 5,605,244 6,345,302 6,527,413 7,027,844 9,247,186 10,270,970 10,563,129 9,685,338
839,914 895,633 1,216,011 1,139,653 1,289,050 1,225,550 1,314,270 1,391,612 1,371,148 1,220,238
2,671,668 2,649,089 2,996,439 3,229,968 3,443,961 3,918,798 4,351,936 5,233,807 5,291,398 5,439,202
296,321 381,372 430,813 403,363 440,263 776,273 625,014 807,651 736,436 692,552
242,001 245,165 238,843 325,326 347,975 384,980 523,439 692,408 495,767 467,740
1,810,226 432,305 1,381,776 4,048,126 1,439,607 368,303 870,453 3,162,034 1,892,075 257,373
246,325 330,768 486,147 1,997,263 470,221 319,280 336,101 382,687 482,665 572,742
163,592 162,420 164,307 133,998 277,855 262,479 255,672 243,871 222,938 200,236
- - - - - - - - 6,136 5,890
6,270,047 5,096,752 6,914,336 11,277,697 7,708,932 7,255,663 8,276,885 11,914,070 10,498,563 8,855,973
(1,040,051) 433,712 (1,309,092) (4,932,395) (1,181,519) (227,819) 970,301 (1,643,100) 64,566 829,365
777,309 742,355 2,624,652 5,358,147 464,954 326,010 3,771,617 2,023,368 685,644 924,300
(585,609) (542,811) (644,090) (4,038,447) (472,801) (334,470) (3,068,840) (1,963,068) (625,344) (803,700)
1,583,578 550,000 - 5,252,000 - 574,624 152,999 136,789 - -
1,775,278 749,544 1,980,562 6,571,700 (7,847) 566,164 855,776 197,089 60,300 120,600
S 735,227 $1,183,256 S 671,470 $1,639,305 $(1,189,366) $ 338,345 $1,826,077 $(11446,011) S 124,866 S 949,965
9.19% 10.57% 11.76% 29.48% 11.93% 8.45% 7.99% 7.16% 8.20% 8.99%
-76-
This report is not required. However, the Village of Tequesta started presenting this data from 2003.
-77-
VILLAGE OF TEQUESTA, FLORIDA
SCHEDULE 6
TAX REVENUES BY SOURCE, GOVERNMENTAL FUNDS
LAST SIX FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal
Year
Pro er Sales & Use Franchise
Total
2003
$ 3,392,623 $ 1,093,877 $ 350,423
$ 4,836,923
2004
3,781,095 1,089,781 372,212
5,243,088
2005
4,494,713 1,084,827 367,778
5,947,318
2006
5,166,754 1,087,759 419,929
6,674,442
2007
6,139,007 1,036,200 477,711
7,652,918
2008
5,661,200 1,063,399 462,296
7,186,896
Change:
2003-2008
2,268,577 (30,478) 111,873
2,349,973
2003-2008
66.87% -2.79% 31.93%
48.58%
This report is not required. However, the Village of Tequesta started presenting this data from 2003.
-77-
VILLAGE OF TEQUESTA, FLORIDA
REVENUES FROM SALES & USE TAXES BY CATEGORY
LAST SIX FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Utility taxes:
Electric
Water
Propane
Communications services tax
Gas taxes:
Local gas tax 6 cents
Local gas tax 1-5 cent
2003
2004
2005
2006
2007
2008
$ 372,565
$ 350,854
$ 363,807
$ 363,620
$ 392,158
$ 397,931
158,738
177,954
156,890
169,302
100,360
128,010
23,904
24,329
30,587
37,557
21,402
17,420
351,680
340,996
335,593
329,248
343,620
347,418
127,087
133,272
135,948
129,668
122,271
117,645
59,903
62,376
62,000
58,364
56,389
54,975
$1,093,877 $1,089,781 $1,084,827 $1,087,759 $1,036,200 $1,063,399
Note: The Village began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003.
-78-
VILLAGE OF TEQUESTA, FLORIDA
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Source: Palm Beach County Property Appraiser's office:
Form DR-403AM "The 2008 Revised Recapitulation of the Ad Valorem Assessment Rolls of Tequesta, Palm Beach County, Florida"
-79-
Centrally
Real Property
Personal
Property
Assessed Property
Total
Estimated
Estimated
Estimated
Estimated
Assessed
Actual "Just"
Actual "Just"
Actual "Just"
Actual "Just"
Value as a
Taxable
Value of
Taxable
Value of
Taxable
Value of
Taxable
Direct
Value of
Percentage
Assessed
Taxable
Assessed
Taxable
Assessed
Taxable
Assessed
Tax
Taxable
of Actual
September 30
Value
Property
Value
Prope
Value
Property
Value
Rate
Property
Value
1999
$ 391,373,771
$ 487,378,779
$16,920,043
$ 20,210,854
$ -
$ -
$ 408,293,814
6.7305
$ 507,589,633
80%
2000
422,707,903
522,797,351
18,949,389
21,865,379
278,827
278,827
441,936,119
6.7305
544,941,557
81%
2001
468,569,608
601,222,227
18,641,610
21,621,054
279,734
279,734
487,490,952
6.7305
623,123,015
78%
2002
503,562,346
672,688,887
19,211,494
22,202,297
287,762
287,762
523,061,602
6.7305
695,178,946
75%
2003
583,470,308
789,428,369
19,488,528
22,409,087
326,474
326,474
603,285,310
6.4980
812,163,930
74%
2004
695,900,596
950,969,798
19,752,631
22,669,061
340,485
340,485
715,993,712
6.4980
973,979,344
74%
2005
804,692,586
1,159,686,579
20,372,762
23,286,106
340,839
340,839
825,406,187
6.4980
1,183,313,524
70%
2006
959,650,125
1,369,028,275
21,925,090
21,925,090
385,284
385,284
981,960,499
6.4980
1,391,338,649
71%
2007
992,309,662
1,410,466,330
24,589,752
27,733,698
489,214
489,214
1,017,388,628
5.7671
1,438,689,242
71%
2008
909,587,738
1,267,801,514
20,262,864
26,731,490
724,859
730,883
930,575,461
5.7671
1,295,263,887
72%
Source: Palm Beach County Property Appraiser's office:
Form DR-403AM "The 2008 Revised Recapitulation of the Ad Valorem Assessment Rolls of Tequesta, Palm Beach County, Florida"
-79-
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VILLAGE OF TEQUESTA, FLORIDA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
Source: Palm Beach County Property Appraiser's Office
-81-
2008
1999
Percentage of
Percentage of
Taxable
Total Village
Taxable
Total Village
Assessed
Taxable
Assessed
Taxable
Taxpayer
Value
Rank
Value
Value
Rank
Value
Tamwest Realty, Inc (County Line Plaza)
$ 19,415,557
1
2.09%
$ 11,695,777
1
2.86%
Inland S.E. Tequesta, LLC (Teq. Shoppes)
9,000,000
2
0.97%
8,094,320
2
1.98%
Terrace Communities Tequesta LLC
7,693,231
3
0.83%
Tequesta Investors LP
7,400,000
4
0.80%
Royal Tequesta LLC
5,278,909
5
0.57%
SLO ML LLC
5,260,477
6
0.57%
Casa Del Sol of Tequesta LLC
5,257,610
7
0.56%
JMZ Tequesta Properties, Inc.
5,157,852
8
0.55%
AHC Purchaser Inc
4,822,561
9
0.52%
0.00%
Tequesta Country Club
4,430,714
10
0.48%
2,865,532
5
0.70%
Tequesta Shoppes, Ltd. (Capital Management)
-
0.00%
3,962,779
3
0.97%
Dorner Properties
-
0.00%
3,465,595
4
0.85%
Tequesta Business Associates
-
0.00%
-
-
0.00%
Barnett Bank (NationsBank, Bank of America)
-
0.00%
2,164,539
6
0.53%
Tequesta Fashion Mall
-
0.00%
1,700,000
8
0.42%
202 Building (SHW Ltd.)
-
0.00%
1,653,423
9
0.40%
Meditrust of Florida
-
0.00%
1,824,997
7
0.45%
Peercira, Robert W.
-
0.00%
1,540,000
10
0.38%
Total
$ 73,716,911
7.92%
$ 38,966,962
9.54%
Source: Palm Beach County Property Appraiser's Office
-81-
VILLAGE OF TEQUESTA, FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS (UNAUDITED) (1)
LAST TEN FISCAL YEARS
(1) The tax levied in a fiscal year is based on the taxable value of the prior year
(2) Includes discounts taken by property taxpayers.
Source: Palm Beach County Tax Collector's office.
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Collected within the
Fiscal Year
Taxes Levied
Fiscal Year of the Levy
Collections
Total Collections to Date (2)
Ended
for the
Percentage
in Subsequent
Percentage
September 30,
Fiscal Year (1)
Amount
of Lew
Years
Amount
of Lew
1999
$ 2,653,474
$2,642,313
99.6%
$ 11,161
$2,653,474
100.0%
2000
2,858,426
2,846,894
99.6%
11,531
2,858,425
100.0%
2001
2,985,994
2,970,942
99.5%
15,052
2,985,994
100.0%
2002
3,271,160
3,147,730
96.2%
5,816
3,153,546
96.4%
2003
3,520,466
3,388,176
96.2%
13,983
3,402,160
96.6%
2004
3,912,003
3,776,782
96.5%
3,750
3,780,532
96.6%
2005
4,650,578
4,486,224
96.5%
5,338
4,491,562
96.6%
2006
5,363,489
5,164,292
96.3%
4,590
5,168,882
96.4%
2007
6,355,149
6,134,038
96.5%
8,176
6,142,214
96.6%
2008
5,863,796
5,663,439
96.6%
2,792
5,666,231
96.6%
(1) The tax levied in a fiscal year is based on the taxable value of the prior year
(2) Includes discounts taken by property taxpayers.
Source: Palm Beach County Tax Collector's office.
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Utility taxes:
Electric
Water
Propane
Communications services tax
Gas taxes:
Local option gas tax 6 cents & 1-5 cent
VILLAGE OF TEQUESTA, FLORIDA
SECOND TIER CAPACITY - OTHER TAXES BY CATEGORY
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
$ 386,207
$ 350,269
$ 347,272
$ 362,884
$ 372,565
$ 350,854
$ 363,807
$ 363,620
$ 392,158
$ 397,931
113,001
162,187
134,352
136,133
158,738
177,954
156,890
169,302
100,360
128,010
17,079
22,397
32,212
15,983
23,904
24,329
30,587
37,557
21,402
17,420
-
-
-
319,357
351,680
340,996
335,593
329,248
343,620
347,418
165,672 165,496 183,668 174,357 186,990 195,648 197,948 188,033 178,660 172,620
$ 681,959 $ 700,349 $ 697,504 $1,008,714 $1,093,877 $1,089,781 $1,084,826 $1,087,759 $1,036,200 $1,063,399
-83-
(1) Unavailable
-84-
VILLAGE OF TEQUESTA, FLORIDA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities
Business -type Activities
Total
Percentage
Revenue
Notes
Capital
Revenue Notes
Primary
of Personal
Fiscal Year
Bonds
Payable
Leases
Bonds Payable
Government
Income
Per Capita
1999
$1,040,000
$ 8,448
$ 390,781
$ 7,915,000 $ 104,068
$9,458,297
(1)
(1)
2000
960,000
4,029
314,127
7,780,000 84,360
9,142,516
4.96%
1,734
2001
880,000
-
246,696
7,640,000 58,669
8,825,365
4.75%
1,663
2002
790,000
5,000,000
162,856
7,495,000 36,723
13,484,579
7.24%
2,531
2003
695,000
4,838,352
353,636
7,345,000 13,827
13,245,815
7.10%
2,484
2004
595,000
4,669,648
363,065
7,185,000 645,170
13,457,883
6.81%
2,383
2005
490,000
4,493,579
461,032
7,020,000 524,852
12,989,463
6.53%
2,284
2006
380,000
4,309,827
508,886
6,850,000 504,852
12,553,565
6.29%
2,202
2007
259,846
4,118,053
338,150
6,670,000 437,952
11,824,001
4.61%
1,990
2008
-
3,917,907
225,399
- 6,929,640
11,072,946
3.39%
1,877
(1) Unavailable
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VILLAGE OF TEQUESTA, FLORIDA
RATIO OF NET OUTSTANDING DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA (UNAUDITED)
LAST TEN FISCAL YEARS
*Sources: Palm Beach County Planning Board, University of Florida Estimates
Federal Census
Palm Beach County Metro -Planning Organization
PBC Property Appraiser's Office, Form DR-403AM -The 2008 Revised Recapitulation of the Ad valorem Assessment Roll
Source - Bureau of Economic & Business Research, University of Florida for population estimates
B) Special Revenue Fund 101- Fund Balance
'":1<.11
Assessed
(A)
(B)
(A - B)
Ratio of Net
Net O/S
Value of
Gross
Debt Service
Net
O/S Debt to
Debt
Fiscal Year Ended
Taxable
Outstanding
Funds
Outstanding
Value of
Per
September 30,
Population*
Prope
Debt
Available
O/S Debt
Taxable Property
Capita
1999
5122
$ 408,293,784
$9,458,297
$ 75,874
$9,382,423
2.30%
$ 1,832
2000
5273
441,936,119
9,142,516
118,738
9,023,778
2.04%
1,711
2001
5307
487,490,952
8,825,365
141,912
8,683,453
1.78%
1,636
2002
5327
525,401,605
13,484,579
141,913
13,342,666
2.54%
2,505
2003
5333
603,285,310
13,245,815
225,676
13,020,139
2.16%
2,441
2004
5648
695,600,596
13,457,883
272,801
13,185,082
1.90%
2,334
2005
5686
804,692,586
12,989,463
294,444
12,695,019
1.58%
2,233
2006
5702
959,650,125
12,553,565
378,680
12,174,885
1.27%
2,135
2007
5942
1,016,956,533
11,824,001
482,726
11,341,275
1.12%
1,909
2008
5898
931,307,717
11,072,946
369,490
10,703,456
1.15%
1,815
*Sources: Palm Beach County Planning Board, University of Florida Estimates
Federal Census
Palm Beach County Metro -Planning Organization
PBC Property Appraiser's Office, Form DR-403AM -The 2008 Revised Recapitulation of the Ad valorem Assessment Roll
Source - Bureau of Economic & Business Research, University of Florida for population estimates
B) Special Revenue Fund 101- Fund Balance
'":1<.11
VILLAGE OF TEQUESTA, FLORIDA
COMPUTATION OF LEGAL DEBT MARGIN
SEPTEMBER 30, 2008
Total assessed value
Legal debt margin:
Debt limitation - 10% of total assessed value
Total bonded debt outstanding (a) $ -
Less amount available in debt service fund (b) 228,500
Total debt applicable to limitation
Legal debt margin
(a) PBC Property Appraiser's Office, Foran DR -420 'Certificate of Taxable Value'
(b) IBR- Special Revenue - Unreserved Fund Balance at 9/30/2008
$ 931,307,717
$ 93,130,772
$ 93,130,772
VILLAGE OF TEQUESTA, FLORIDA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
SEPTEMBER 30, 2008
Net
Bonded
Debt
Governmental Unit Outstanding
Debt repaid with property taxes
Patin Beach County $ 290,410,000
P.B.C. School Board 35,805,000
Subtotal, overlapping debt
Village of Tequesta direct debt
Total direct and overlapping debt
0.58% $ 1,684,378
0.58% 207,669
1,892,047
4,143,306
$ 6,035,353
Sources: Assessed value date used to estimate applicable percentages provided by each governmental unit.
Notes: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the
Village of Tequesta. This schedule estimates the portion of the outstanding debt of those overlapping
governments that is borne by the residents and business of the Village of Tequesta. This process recognizes
that, when considering the Village's ability to issue and repay long-term debt, the entire debt burden borne by
the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a
resident - and therefore responsible for repaying the debt - of each overlapping government.
(a) For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using
taxable assessed property values. Applicable percentages were estimated by determining the portion of another
governmental unit's taxable assessed value that is within the Village's boundaries and dividing it by each unit's
total taxable assessed value.
51 -Te
Estimate
Estimate
Share of
Percentage
Direct and
Applicable to
Overlapping
Tequesta (a)
Debt
0.58% $ 1,684,378
0.58% 207,669
1,892,047
4,143,306
$ 6,035,353
Sources: Assessed value date used to estimate applicable percentages provided by each governmental unit.
Notes: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the
Village of Tequesta. This schedule estimates the portion of the outstanding debt of those overlapping
governments that is borne by the residents and business of the Village of Tequesta. This process recognizes
that, when considering the Village's ability to issue and repay long-term debt, the entire debt burden borne by
the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a
resident - and therefore responsible for repaying the debt - of each overlapping government.
(a) For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using
taxable assessed property values. Applicable percentages were estimated by determining the portion of another
governmental unit's taxable assessed value that is within the Village's boundaries and dividing it by each unit's
total taxable assessed value.
51 -Te
VILLAGE OF TEQUESTA, FLORIDA
PLEDGED -REVENUE COVERAGE
LAST TEN FISCAL YEARS
Note: Details regarding the Village's outstanding debt can be found in the notes to the financial statements.
Operating expenses do not include interest, depreciation or amortization expenses.
(a) Pledged revenues include franchise fees, licenses and permits from Fund 101.
-88-
Less
Net
Fiscal
Pledged
Operating
Available
Debt Service
Year
Revenues (a)
Expenses
Revenue
Principal
Interest
Coverage
1999
$ 455,063
$ 143,370
$ 311,693
$ 75,000
$ 68,370
2.17
2000
490,179
143,960
346,219
80,000
63,960
2.40
2001
498,959
139,095
359,864
80,000
59,095
2.59
2002
441,409
144,461
296,948
90,000
54,461
2.06
2003
448,946
143,585
305,361
95,000
48,585
2.13
2004
464,973
142,678
322,295
100,000
42,678
2.26
2005
459,873
141,490
318,383
105,000
36,490
2.25
2006
524,468
140,135
384,333
110,000
30,135
2.74
2007
593,649
143,370
450,279
120,154
23,216
3.14
2008
515,700
275,836
239,864
259,846
15,990
0.87
Note: Details regarding the Village's outstanding debt can be found in the notes to the financial statements.
Operating expenses do not include interest, depreciation or amortization expenses.
(a) Pledged revenues include franchise fees, licenses and permits from Fund 101.
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VILLAGE OF TEQUESTA, FLORIDA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Note: Principal Employers - The Village of Tequesta has no discernable level of industries. "Workforce
Housing Needs Assessment: Municipal Profiles", prepared by the Metropolitan Center, Florida International
University.
Sources:
(1) Bureau of Economic and Business research, University of Florida.
(2) 2000 U.S. Census Data, adjusted for inflation by MuniNetGuide.com
(3) Agency for Workforce Innovation (AWI).
(September to September - local area by County - not seasonally adjusted)
(4) Wikipedia.org
(5) Unavailable
r-92
Per
Capita
Fiscal
Population
Personal
Personal
Median
Unemployment
Year
(1)
Income
Income 4
Age (2)
Rate 3
1999
5122
(5)
(5)
(5)
5.7%
2000
5273
184,417,902
34,974
47.5
5.2%
2001
5307
185,607,018
34,974
47.5
5.5%
2002
5327
186,306,498
34,974
47.5
5.1%
2003
5333
186,516,342
34,974
47.5
6.2%
2004
5648
197,533,152
34,974
47.5
5.7%
2005
5686
198,862,164
34,974
47.5
3.1%
2006
5702
199,421,748
34,974
47.5
3.7%
2007
5942
256,397,300
43,150
49.6
3.3%
2008
5898
326,224,278
55,311
47.5
7.3%
Note: Principal Employers - The Village of Tequesta has no discernable level of industries. "Workforce
Housing Needs Assessment: Municipal Profiles", prepared by the Metropolitan Center, Florida International
University.
Sources:
(1) Bureau of Economic and Business research, University of Florida.
(2) 2000 U.S. Census Data, adjusted for inflation by MuniNetGuide.com
(3) Agency for Workforce Innovation (AWI).
(September to September - local area by County - not seasonally adjusted)
(4) Wikipedia.org
(5) Unavailable
r-92
VILLAGE OF TEQUESTA, FLORIDA
FULL-TIME EQUIVALENT VILLAGE GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
LAST SEVEN FISCAL YEARS
Full-time Equivalent Employees as of
September 30
Function/Program 2002 2003 2004 2005 2006 2007 2008
Governmental activities:
General government
Public safety
Transportation
Leisure services
Total governmental activities
Business -type activities:
Water
Stormwater
Community development (a)
Total business -type activities
Total primary government
Note: The Village was able to access this data from 2002.
Source: Village of Tequesta Human Resource Dept
8.0
8.5
12.0
11.5
10.5
9.5
15.0
45.5
51.0
45.0
45.0
46.0
51.0
50.0
2.0
2.5
-
-
3.0
4.0
4.0
1.5
2.5
2.0
2.0
3.0
3.0
3.0
57.0
64.5
59.0
58.5
62.5
67.5
72.0
14.0
12.5
14.5
14.0 15.0
15.5
15.0
0.5
-
-
- 1.0
1.0
1.0
3.5
3.0
2.5
- -
-
-
18.0
15.5
17.0
14.0 16.0
16.5
16.0
75.0
80.0
76.0
72.5 78.5
84.0
88.0
Notes: A full-time employee is scheduled to work 2,088 hours per year (including vacation and sick leave).
Full -time -equivalent employment is calculated by dividing total labor hours by 2,088.
(a) Community Development activities (planning, building and code enforcement) were accounted for in an
enterprise (business -type activity) fund until fiscal year 2005 when the fund was closed. Planning and building
activities are currently accounted for in the General Fund, and code enforcement as part of the function of
Public Safety.
-90-
VILLAGE OF TEQUESTA, FLORIDA
OPERATING INDICATORS BY FUNCTION/PROGRAM
CURRENT FISCAL YEAR
Governmental activities:
General government
Registered voters
Public safety:
Police department
No. of Patrol Units
No. of full-time certified police officers
No. of calls received
No. of arrests
No. of parking violations
No. of incident numbers issued
Fire department:
No. of full-time certified firefighters
No. of Ambulances
No. of Pumpers
No. of emergency responses
No. of transports
No. of fires extinguished
No. of inspections
Building, zoning:
No. of building permits issued
No. of building inspections conducted
Transportation:
Miles of street lane miles
No. of bridges
No. of fire hydrants
Leisure services:
No. of parks
No. of park acreage
No. of playgrounds
No. of Baseball / Softball Diamonds
No. of Skate -Parks
No. of Spring Classes
No. of Summer Classes
No. of Movies
Business -type activities:
Water:
No. of customers
Average daily consumption
Miles of water mains
Storage Capacity (thousand of gallons)
-91-
11:
4,439
1
7
17
3,535
224
171
965
20
2
2
1,143
621
522
435
906
2,039
43
1
430
3
53
2
3
1
8
4
4
4,968
2.351 mg
72
3,250
VILLAGE OF TEQUESTA, FLORIDA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
CURRENT FISCAL YEAR
Function/program:
Governmental activities:
General government:
Municipal center
Public safety
Police:
No. of stations
No. of patrol units
Fire:
No. of stations
No. of ambulances
No. of pumpers
Transportation:
Miles of street lane miles
Leisure services
No. of parks
No. of park acreage
No. of playgrounds
No. of baseball/softball diamonds
No. of skate -parks
Business -type activities:
Water:
Miles of water mains
No. of fire hydrants
Storage capacity (thousands of gallons)
IDA
2008
1
1
7
1
2
2
43
3
53
2
3
1
72
430
3,250
Page Intentionally Left Blank
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Rachlin
accountants ■ advisors
Report of Independent Certified Public Accountants on Internal Control over
Financial Reporting and on Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance with Government Auditing Standards
Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
We have audited the financial statements of the governmental activities, the business -type activities and
each major fund and the aggregate remaining fund information of the Village of Tequesta, Florida (the
Village), as of and for the year ended September 30, 2008, which collectively comprise the Village's
basic financial statements, and have issued our report thereon dated February 27, 2009. We conducted
our audit in accordance with auditing standards generally accepted in the United States and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States.
Internal Control over Financial Reporting
In planning and performing our audit, we considered the Village's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Village's
internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness
of the Village's internal control over financial reporting.
A control deficiency exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of
control deficiencies, that adversely affects the Village's ability to initiate, authorize, record, process, or
report financial data reliably in accordance with generally accepted accounting principles such that there
is more than a remote likelihood that a misstatement of the Village's financial statements that is more
than inconsequential will not be prevented or detected by the Village's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in
more than a remote likelihood that a material misstatement of the financial statements will not be
prevented or detected by the Village's internal control.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and would not necessarily identify all deficiencies in internal control that
might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal
control over financial reporting that we consider to be material weaknesses, as defined above.
5121
mom
Rachlin LLP ■ 777 South Flagler Drive ■ Suite 150 ■ West Palm Beach, Florida 33401 ■ Phone 561.833.0002 ■ Fax 561 .8313235 ■ www.rachlin.com
An Independent Member of Baker Tilly International
M I A M I ■ F 0 R T L A U D E R D A L E ■ W E S T P A L M B E A C R
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Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
Page Two
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Village of Tequesta's financial statements
are free of material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts and grant agreements, noncompliance with which could have a direct and material
effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit and, accordingly, we do not express
such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that
are required to be reported under Government Auditing Standards.
We noted certain other matters that we reported to management of the Village in the accompanying
schedule of findings and responses.
The Village's responses to the findings identified in our audit are described in the accompanying schedule
of findings and responses. We did not audit the Village's responses, and accordingly, we express no
opinion on them.
This report is intended solely for the information and use of the Village Council, management, and
regulatory bodies and is not intended to be and should not be used by anyone other than these specified
parties.
West Palm Beach, Florida
February 27, 2009
-94-
Rachlin
accountants • advisors
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Rachlin
accountants - advisors
Management Letter in Accordance with the Rules of the Auditor General of the State of Florida
Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
We have audited the basic financial statements of the Village of Tequesta, Florida (the Village) as of and for
the year ended September 30, 2008, and have issued our report thereon dated February 27, 2009, which was
modified to refer to the report of other auditors with regards to the Pension Trust Funds.
We conducted our audit in accordance with auditing standards generally accepted in the United States; the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States. We have issued our Report on Internal Control over Financial Reporting and on
Compliance and Other Matters. Disclosures in that report, which is dated February 27, 2009, should be
considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the
Auditor General, which govern the conduct of local governmental entity audits performed in the State of
Florida. This report includes the following, which is not included in the aforementioned auditor's reports or
schedule.
➢ Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not
corrective actions have been taken to address significant findings and recommendations made in the
preceding annual financial audit report. There were no previous year findings or recommendations.
➢ Section 10.554(1)(1)2., Rules of the Auditor General, requires our audit to include a review of the
provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection
with our audit, we determined that the Village complied with Section 218.415, Florida Statutes.
➢ Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the management letter
any recommendations to improve financial management, accounting procedures, and internal controls.
In connection with our audit, this finding and recommendation is incorporated in the accompanying
schedule of findings and responses.
➢ Section 10.554(1(1)4., Rules of the Auditor General, requires that we address violations of provisions
of contracts and grant agreements or abuse that have an effect on the financial statements that is less
than material but more than inconsequential. In connection with our audit, we did not have any such
findings.
➢ Section 10.554(1)(1)5., Rules of the Auditor General, requires based on professional judgment, the
reporting of the following matters that are inconsequential to the financial statements, considering both
quantitative and qualitative factors: (1) violations of laws, rules, regulations, and contractual provisions
or abuse that have occurred, or were likely to have occurred, and would have an immaterial effect on
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Raehlin LLP ■ 777 South Flagler Drive ■ Suite 150 ■ West Palm Beach, Florida 33401 ■ Phone 561.833.0002 ■ Fax 561.833.3235 ■ www.rachlin.com
An Independent Member of Baker Tilly International
M I A M I ■ F 0 R T L A U D E R D A L E ■ W E S T P A L M B E A C H
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Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
Page Two
the financial statements; (2) improper expenditures or illegal acts that would have an immaterial
effect on the financial statements; and (3) control deficiencies that are not significant deficiencies,
including, but not limited to; (a) improper or inadequate accounting procedures (e.g., the omission
of required disclosures from the financial statements); (b) failures to properly record financial
transactions; and (c) other inaccuracies, shortages, defalcations, and instances of fraud discovered
by, or that come to the attention of, the auditor. In connection with our audit, our finding and
recommendation is disclosed in the accompanying schedule of findings and responses.
➢ Section 10.554(1)(i)6., Rules of the Auditor General, requires that the name or official title and
legal authority for the primary government and each component unit of the reporting entity be
disclosed in this management letter, unless disclosed in the notes to the financial statements. The
Village was incorporated in 1957 By Laws of Florida 57-1915. There are no component units.
➢ Section 10.554(1)(i)7.a., Rules of the Auditor General, requires a statement be included as to
whether or not the local governmental entity has met one or more of the conditions described in
Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In
connection with our audit, we determined that the Village did not meet any of the conditions
described in Section 218.503(1), Florida Statutes.
➢ Section 10.554(1)(1)7.b., Rules of the Auditor General, requires that we determine whether the
annual financial report for the Village for the fiscal year ended September 30, 2008, filed with the
Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in
agreement with the annual financial audit report for the fiscal year ended September 30, 2008. In
connection with our audit, we determined that these two reports were in agreement.
➢ Section 10.554(1)(1)7.c. and 10.556(7), Rules of the Auditor General, require that we apply
financial condition assessment procedures. In connection with our audit, we applied financial
condition assessment procedures. It is management's responsibility to monitor the entity's financial
condition, and our financial condition assessment was based in part on representations made by
management and the review of financial information provided by same.
Pursuant to Chapter 119, Florida Statutes, this management letter is public record and its distribution is
not limited. Accounting standards generally accepted in the United Sates require us to indicate that this
letter is intended solely for the information of the Mayor, Village Council, management, and the State of
Florida Office of the Auditor General, and is not intended to be and should not be used by anyone other
than these specified parties.
West Palm Beach, Florida
February 27, 2009
Rachlin
accountants • advlsars
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VILLAGE OF TEQUESTA, FLORIDA
SCHEDULE OF FINDINGS AND RESPONSES
FISCAL YEAR ENDED SEPTEMBER 30, 2008
FINANCIAL STATEMENT FINDINGS
Other Matters
08-01 Segregation of Duties
Criteria
An effective system of internal controls provide for the distribution of duties among available personnel,
so that no one employee controls all phases of a transaction without some independent verification by
another employee.
Condition
During the course of our audit, we noted that the limited staffing poses a potential risk for an insufficient
segregation of duties in the utility cash receipts transaction cycle.
Cause
The Village has not adequately segregated duties among available personnel.
Effect
A lack of segregation of duties can expose the Village to fraudulent activities.
Recommendation
Although we are aware that resources should not in all instances be dedicated to satisfy internal control
dictates, to the extent possible, duties should be segregated among available personnel to serve as a check
and balance.
Views of Responsible Officials and Planned Corrective Actions
The Village is very serious about internal controls and segregation of duties and agrees that in an ideal
internal control environment, there are certain accounting functions that should not be performed by the
same person. However, due to the current economic outlook, the size of the Village of Tequesta and the
current constraints on hiring and budget, it is not feasible to hire additional staff in order to ensure that the
various functions of the utility cash receipts transaction cycle are fully and clearly separated. However,
the Village has implemented a number of controls in this area to mitigate the potential risk.
• During a billing cycle, the customer service representative prepares the deposit.
The Customer service supervisor validates the deposit in the system, verifying amounts.
An accountant, separate from the water utility, is made aware of the completion of the deposits for
the day and appends the information from the cash receipts module into the general ledger,
verifying the amount recorded in the general ledger agrees with the amount of the daily deposit per
cash receipts.
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VILLAGE OF TEQUESTA, FLORIDA
SCHEDULE OF FINDINGS AND RESPONSES
(Continued)
Views of Responsible Officials and Planned Corrective Actions (Continued)
• An accounts receivable aging report is generated after each billing and reviewed by an accountant,
separate from the water utility, who is responsible for reconciling accounts receivable and
investigating any discrepancies.
• Also, with each billing an accounts receivable aging report is generated that is reviewed by an
accountant, separate from the water utility, who is responsible for reconciling accounts receivable
and investigating any discrepancies.
• An accountant, separate from the water utility reconciles the bank statement and verifies the deposit
with the bank.
The Village will be implementing on line payments in the year ending 9/30/2009, which is expected to
add additional segregation of duties and will continue to look for additional opportunities to lower any
risk in this area.
08-02 Retention of Records
Criteria
The maintenance of adequate supporting documentation ensures that transactions posted to the general
ledger can be properly validated.
Condition
During audit procedures performed for utility billing and receipts, we noted that the Village did not
maintain the utility stubs as evidence of the utility bill sent to and the payments remitted by their utility
customers.
Cause
The Village did not believe it was necessary to maintain the stubs as part of the documentation to
substantiate transactions entered into the general ledger system.
Effect
A lack of adequate supporting documentation could expose the Village to fraudulent activities.
Recommendation
We recommend that policies and procedures be established to ensure that adequate supporting
documentation, including the utility stubs, is maintained for all utility transactions.
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VILLAGE OF TEQUESTA, FLORIDA
SCHEDULE OF FINDINGS AND RESPONSES
(Continued)
Views of Responsible Officials and Planned Corrective Actions
The Village agrees that it is important to maintain documentation to substantiate transactions entered into
the general ledger and currently maintains the following records as documentation:
• Billing register (two years of monthly registers are kept in the file room then moved to storage at
the water plant).
o This is a monthly report that is automatically generated at each billing.
o It is a computer generated report that prints, in report format all the bills that were generated
during that billing cycle and includes all the information that is printed on each bill.
• The final summary bill (including the stub portion) for each billing.
o Includes the summary of the total billing by each billing code.
• The Village has access to a complete history of each account showing all billings, payments and
deposits as well as any notes that may be pertinent to the account. This information is part of the
Utility Billing software module and the data is held on the server and available at all times.
• In addition an accountant, separate from the water utility prints a trial balance prior to billing and
prepares a spreadsheet. After billing, the accountant receives the summary billing card showing the
total of all billing codes, enters the amounts in the spreadsheet, compares the final amounts to the
trial balance printed after billing, verifies the amounts and investigates any discrepancies.
• Also, with each billing an accounts receivable aging report is generated that is reviewed by an
accountant separate from the water utility, who is responsible for reconciling accounts receivable
and investigating any discrepancies.
The Village considered maintaining the utility stubs as evidence, however, as customers do not always
return their stubs with payments, (i.e., ACH payments, electronic bill payment, checks with account
numbers and no stub, eta) this would be an incomplete record. Also, as the billing register contains all the
information on the bills, is completed at the same time and by the same software program (Utility Billing)
and is evidence of the bills printed, the Village determined that keeping the billing registers would
document a more complete record.
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