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CAFR_FY Ending_09/30/1986Comprehensive Annual Financial. Report Village of Tequesta, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT VILLAGE OF TEQUESTA, FLORIDA September 30, 1986 Prepared by the Finance Department VILLAGE OF TEQUESTA, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT September 30, 1986 TABLE OF CONTENTS Page Number Introductory Section Title Page i Table of Contents 1 Letter of Transmittal 3 Certificate of Conformance 13 Village of Tequesta Organization Chart 14 List of Principal Officials 15 Financial Section Auditor's Report--Opinion of Independent Certified Public Accountants 16 General Purpose Financial Statements Combined Balance Sheet--All Fund Types and Account Groups 18 Combined Statement of Revenues, Expenditures and Changes in Fund Balances--All Governmental Fund Types 22 Combined Statement of Revenues, Expenditures and Changes in Fund Balances --Budget and Actual-- General and Special Revenue Fund Types 24 Statement of Revenues, Expenses and Changes in Retained Earnings--Proprietary Fund Type 26 Statement of Changes in Financial Position-- Proprietary Fund Type 27 Notes to Financial Statements 28 Supplemental Information General Fund Schedule of Revenues--Budget and Actual 44 Schedule of Departmental Expenditures-- Budget and Actual 46 Proprietary Fund (Enterprise Fund) Schedule of Operating Expenses--Budget and Actual 54 Comparative Summary of Operations--Fiscal Years Ended September 30, 1986 and 1985 55 Schedule of Restricted Accounts Under Revenue Bond Ordinance 56 Amortization Schedule--Water Refunding Revenue Bonds - Series 1985 58 VILLAGE OF TEQUESTA, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT September 30, 1986 TABLE OF CONTENTS (Continued) Eage Numbe: General Fixed Asset Account Group Schedule of General Fixed Assets By Source 59 Schedule of General Fixed Assets By Function and Activity 60 Schedule of Changes in General Fixed Assets By Function and Activity 61 General Long-Term Debt Amortization Schedule--Improvement Revenue Bonds - Series 1979 62 All Funds Schedule of Investments 63 Schedule of Insurance 65 Statistical Section General Revenues by Source 66 General Government Expenditures by Function 68 Property Tax Levies and Collections 70 Assessed and Estimated Actual Value of Taxable Property 71 Property Tax Rates--All Overlapping Governments 73 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita 75 Legal Debt Margin 77 Computation of Overlapping Debt 78 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures 79 Revenue Bond Coverage--Water Bonds 80 Property Value, Construction and Bank Deposits 81 Principal ~!'axpayers 82 Miscellaneous Statistics 83 Demographic Statistics 84 Auditor's Report on comments on Internal Accounting Controls and Administrative Requirements 85 Report on Compliance with Laws and Regulations 88 Statutory Report 90 2 i ,~ VILLAGE OF TEQUESTA ~~ Post Office Box 3273 • 357 Tequesta Drive ~ ~ e Tequesta, Florida 33469-0273 • (305) 746-7457 ~ o f y v CM December 19, 1986 The Honorable Mayor and Village Council Village of Tequesta Tequesta, Florida 33469 Gentlemen: Submitted herewith is the Comprehensive Annual Financial Report of the Village of Tequesta, Florida, for the fiscal year ended September 30, 1986. This report is required by Florida Statutes 166.241 and Chapter 10.550 Rules of the Auditor General. The books, records and' annual financial report of the Village have been examined by our independent auditors, Nowlen, Holt & Miner, P.A., Certified Public Accountants, as required, and their opinion on the financial statements of the Village is included as a part of this report. REPORT PURPOSE AND CONTENT This comprehensive annual financial report reflects the Village's financial operations, and is intended for the use and reference of investment firms, financial institutions, bond holders, rating services, and all persons interested in the Village's operations, in addition to the Village Council. The report is divided into three major sections: 1. Introductory Section, which includes the title page, table of contents, this transmittal letter, the names of the principal officials and an organizational chart. 2. Financial Section, which includes the auditor's report, general purpose financial statements and other supplemental information. 3. Statistical Section, which contains data of the Village relating to social, political and economic characteris- tics, is presented to provide a more complete understanding of the financial affairs of the Village, beyond the statements and schedules as found in the Financial Section. 3 The Honorable Mayor and Village council The Village of Tequesta PRESENTATION AND STANDARDS The accounting records of the general governmental operations are maintained on a modified accrual basis in that revenue is recognized when both measurable and available; whereas, .expenditures are recorded when incurred. The full accrual basis is used in the Enterprise Fund. The Village's financial statements have been designed to conform substantially to the high standards of financial reporting set forth by the Governmental Accounting Standards Board and the American Institute of Certified Public Accountants. ACCOUNTING SYSTEM AND BUDGETARY CONTROL In developing and evaluating the Village's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: (1) the safeguarding of assets against loss from unauthorized use of disposition; and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework. I believe that the Village's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. Budgetary control is maintained at the department level by the encumbrance of estimated purchase amounts prior to the release of purchase orders to vendors. Purchase orders which result in an overrun of departmental balances are not released until additional appropriations are made available. Open encumbrances are reported as reservations of fund balance at September 30, 1986. 4 The Honorable MayoF and Village Council The Village of Tequesta THE REPORTING ENTITY AND ITS SERVICES This report includes all of the funds and account groups of the Village. It also includes all activities considered to be part of (controlled by or dependent on) the Village, as determined by the application of the criteria set forth in "Defining the Governmental Reporting Entity - NCGA Statement 3." In accordance with NCGA Statements 3 and 7, for financial reporting purposes, the Village's financial statements include all funds, account groups, departments, agencies, boards, commissions and other organizations over which Village officials exercise oversight responsibility. Oversight responsibility includes such aspects as appointment of governing body members, budget approval, approval of property tax levies, outstanding debt secured by the Village's full faith and credit or revenues, and the responsibility for funding deficits and others. As in prior years, the Village found that there were no entities to consider when attempting to implement NCGA Statements 3 and 7. Therefore, the criteria in Statement 3 did not require the inclusion of any entity as an accompanying unit in the Village's financial statements. The Village provides the full range of municipal services contemplated by statute or charter. The services provided include: public safety (police), streets and roads, culture and recreation, public improvements, planning and zoning, water service, and general administrative services. CASH MANAGEMENT Cash temporarily idle is invested with various Village financial institutions in accordance with the requirements set forth in the Florida Statutes. Investments are comprised of certificates of deposits and money market accounts ranging from 30 to 365 days to maturity. The depository is selected based on ~ comparison of interest rates. The average yield on maturing investments during the year was 7.8$. The average yield on money market accounts was 6.3$. 5 The Honorable Mayor and Village Council The Village of Tequesta ADMINISTRATIVE CHANGES At the annual organization meeting of the Village Council, Council deleted the position of the Village Clerk and assigned those duties to the Finance Director. Mr. Robert Harp, Village Manager, for the past 29 years retired. He was succeeded by Mr. Thomas G. Bradford. The Village Council also accepted a recommendation from the Village Manager to consolidate the Maintenance Department with the Department of Parks and Recreation. The duties previously performed by two department heads were assigned to one individual (Director of Public Works & Recreation). With the guidance and support of the Village Council, the administration seeks to maintain and improve the level of services provided to the residents of Tequesta while holding operating expenses at an acceptable level. GENERAL FUND The General Fund of the Village encompasses the Village's general government operations and all other functions not accounted for in other funds. As a result of the year's activities, the Village once again completed the year in a financially sound position. General Fund revenues totaled $2,395,697 in 1985-1986. The detail is summarized below: REVENUES Percentage 1984-85 1985-86 of Total Source Amount Amount Revenues Taxes $1,777,305 $1,729,412 72.2 Licenses and permits 102,894 104,014 4.3$ Intergovernmental revenues 332,731 370,315 15.5 Charges for services 9,023 11,869 .5~ Fines and Forfeitures 43,330 42,929 1.8~ Miscellaneous and intra- 128,577 137,158 5.7$ governmental revenues Total $2,393,860 $2,395,697 100.0 6 The Honorable Mayor and Village Council The Village of Tequesta EXPENDITURES Expenditures for the General Fund totaled $2,002,750 in 1985-86. The detail is summarized below: Percentage 1984-85 1985-86 of total Purpose Amount Amount Expenditures Current General government $ 296,537 $ 357,272 16.5$ Public Safety 1,127,171 1,234,668 57.2$ Physical Environment 206,776 240,507 11.1 Transportation 239,512 200,309 9.3$ Human Services 10,907 5,768 2.6~ Culture and recreation 121,847 120,204 3.3~ Total $ 2,002,750 $ 2,158,728 100.0$ Revenues and Expenditures Taxes reported this fiscal year were less than the previous fiscal year, as a result of a (one time) change in the payment of franchise fees by F.P.& L. during the previous fiscal year. Intergovernmental Revenues showed a moderate increase which is attributable to an increase in Local Option Gas Taxes. The tax was increased from two cents per gallon of gasoline sold in the County to four cents, effective the first tax distribution period of this fiscal year. Expenditures for this fiscal year reflect an increase over the previous fiscal year of 7.8~, which is a result of average Cost of Living Adjustment (C.O.L.A.) for employees of 5$, and a Y5% increase in solid waste (garbage) tipping fees passed on to the Village through the service contract for refuse collection. 7 The Honorable Mayor and Village Council Village of Tequesta Fund Balance The General Fund has a fund balance of $630,015 at September 30, 1986. The balance is summarizzed as follows: Fund balance, September 30, 1985 $ 468,046 Excess of revenues over expenditures 236,969 Operating transfers Out 75,000 Fund balance, September 30, 1986 ..........$ 630,015 SPECIAL REVENUE FUND The Special Revenue Fund is used to account for revenue realized from specific sources which is legally required to be accounted for separately from other funds. The Federal Revenue Sharing Fund is the only Special Revenue Fund maintained by the Village. DEBT SERVICE FUND AND GENERAL LONG-TERM DEBT ACCOUNT GROUP The Debt Service Fund is used to account for the accumulation of resources for the payment of general long-term debt principal, interest and related costs. The General Long-Term Debt Account Group is used to account for long-term liabilities expected to be financed from governmental funds. On October 1, 1979, the Village issued $910,000 Improvement Revenue Bonds Series 1979 for the purpose of financing certain drainage improvements within the Village. The bonds received Moody's A and Standard and Poor's AAA (MBIA) rating. The bonds are secured by the pledge of and first lien on the guaranteed entitlement portion of the State Revenue Sharing Trust Funds and by the pledge of and first lien on certain Franchise Fees, Public Service Taxes and Occupational License Taxes. 8 The Honorable Mayor and Village Council The Village of Tequesta On September 30, 1986, $785,000 of the bonds were outstanding. ENTERPRISE FUND Water Treatment Plant Improvements The former water treatment system, (an aeration, chlorination, gravity sand filtration system) with a .96 MGD capacity was replaced with a manganese greensand system with a 1.8 MGD capacity during fiscal year 1984/1985. The total cost of the improvements was $735,930 consisting of the following payments: Item 1984/1985 1986 Total Engineering Fees $100,802 $ 31,740 $132,542 General Contractor 592,250 3,888 596,138 Miscellaneous Expense 7,250 0 7,250 Totals $700,302 S 35,628 $735,930 The original project cost was estimated by the Village Consulting Engineers at $650,000. Actual costs incurred were 13.2 more than the engineer's estimate. The improvements were paid with funds accrued to the unreserved retained earnings of the water system. Enterprise Fund income and expense data for 1986 is shown in the following schedule: Operating revenues $1,512,2$1 Operating expenses 1,310,250 Operating income $ 202,031 Nonoperating revenues (expenses) ( 26,093) Net income $ 175,938 9 The Honorable Mayor and Village Council The Village of Tequeta The Village issued $1,525,000 Water Refunding Revenue Bonds - Series 1985, on January 1, 1985. The bond sale proceeds were used to refund Series 1978 Water Refunding Revenue Bonds. The bonds are secured by the net revenues of the Water Fund. On September 30, 1986, $1,435,000 of the bonds remained outstanding. GENERAL FIXED ASSETS General Fixed Assets are those fixed assets which are not accounted for in the Enterprise Funds. These assets are classified as land, buildings, improvements other than buildings and equipment. They are acquired by general fund revenue, federal or state grants or gifts. A summary of changes in general fixed assets follows: Balance October 1, 1985 Land $ 35,000 Buildings 214,832 Improvements 93,661 Equipment 352,881 Balance September 30, Additions Deletions 1986 $ $ $ 35, 000 214,832 32,785 126,446 71,533 355 424,059 Total $696,374 $104,318 $ 355 $ 800,337 PROSPECTS FOR THE FUTURE The Village administration is intent upon maintaining its strong financial condition and maintaining service levels with minimal increase in ad valorem property taxes. Budget plans are now being implemented that emphasize the following goals: 1. Greater reliance on technology and improved data pro- cessing capability to increase internal efficiency and reduce the need for additional personnel. 10 The Honorable Mayor and Village Council The Village of Tequesta 2. Continued emphasis on improvement and maintenance of the Village's infrastructure system by establishing a Capital Improvement Fund to finance future improvements. Funding will be provided with annual contributions from the General Fund and Enterprise Fund. An initial annual funding level of $75,000 has been established and is bud- geted for fiscal year 1987. Any increases accruing to the General Fund fund balance in excess of operating cash flow requirements may also be transferred to the Capital Improvement Fund. 3. Continued upgrading of the present water treatment sys- tem with emphasis on potential well field expansion. If the Village maintains the level of fiscal discipline and control exercised over the past several years, its financial condition should continue to be strong and stable. CERTIFICATE OF ACHIEVEMENT The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Village of Tequesta for its comprehensive annual financial report for the fiscal year ended September 30, 1985. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid year only. We believe our current report to the Certificate of Achievement Program are submitting it to GFOA to determine another certificate. for a period of one continues to conform requirements, and we its eligibility for 11 The Honorable Mayor and Village Council The Village of Tequesta The preparation of have been accomplished services of the entire guidance and assistance retained by the Village. ACKNOWLEDGMENTS this report on a timely basis could not without the cooperation and dedicated staff of the Village and the professional provided by the independent auditors We wish to express our sincere appreciation to the members of the Village Council for their interest and support in conducting the financial operations of the Village in a sound and progressive manner, thus assuring the citizens of the Village a high level of continued financial stability. Respectfully submitted, / ~~ Thomas G. Bradford, Vil ge Manager Director 12 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, 1985 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to governmental units and public employee retirement systems whose comprehensive annual financial reports (CAFR's) are judged to substantially conform to program standards. PAGE OFF~~ /, /O ~; 'c~~' OF 1~ F9 lVV/~A y" _ ~UNIIEDSIATfS\ y a W = AND 1IN President S ~t CANADA /o G \ COAPDAATIDN / a o~ti. -~o_ CN~(1G0 ~ ~~~~r fl~~ Ex/ecutive Director 13 VILLAGE OF TEQUESTA ORGANIZATIONAL CHART VILLAGE OF TEQUESTA, FLORIDA Council - Manager Form of Government VILLAGE COUNCIL - 1985-1986 Carlton D. Stoddard Edward C. Howell Jill K. Gemino Ron Mackail Edwin J. Nelson Thomas G. Bradford John C. Randolph (Johnston, Sasser, Bill C. Kascavelis Franklin E. Flannery Scott D. Ladd Gary Preston James W. Worth VILLAGE OFFICIALS Randolph & Weaver) Mayor Vice-Mayor Councilmember Councilmember Councilmember Manager Attorney Finance Director/Clerk Police Chief Building Official Director of Public Works & Recreation Water Department Super- intendent INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS Nowlen, Holt & Miner, P.A. ~5 NOWLEN, HOLT, MINER & KISKER CERTIFIED PUBLIC ACCOUNTANTS 215 FIFTH STREET SUITE 200 POST OFFICE BOX 347 WEST PALM BEACH, FLORIDA 33402 TELEPHONE (305) 659-3060 :VERETT B. NOWLEN, CPA, (1930-1984) :DWARD T. HOLT, GPA NILLIAM B. MINER, CPA NILLIAM C. KISKER, JR., CPA (Retired) iOBERT W. HENDRIX, JR., CPA iCHARD J. HUTCHINSON, CPA IANET R. BARICEVICH, CPA B.E. WEEKS, CPA CAROL A. CALLAHAM, CPA RICHARD D. HOOVER, JR.. CPA MARIA D. GALDOS, CPA KATHLEEN A. BENTLEY, CPA DEBRA M. ALBERDI, CPA KIM HATCHER BEAUMONT, CPA ANTHONY B. GRAVETT, CPA GAIL HILL, CPA SCOTT D.DRUKER MARILYN ROBERTS, CPA MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA MSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS ACCOUNTING FIRMS ASSOCIATED INC. The Honorable Mayor and Village Council Village of Tequesta Tequesta, Florida BELLE GLADE OFFICE 333 S.E. 2nd STREET POST OFFICE BOX 33B BELLE GLADE, FLORIDA 33130 TELEPHONE (305) 998.5912 We have examined the general purpose financial statements. of the Village of Tequesta, Florida, as of and for the year ended Septem- ber 30, 1986, as set forth in the table of contents. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the general purpose financial statements present fairly the financial position of the Village of Tequesta, Florida at September 30, 1986, and the results of its operations and the changes in financial position of its proprietary fund type for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. We have also reviewed the accounting requirements of the bond ordi- nances associated with both the Improvement Revenue Bonds, Series 1979 and Water Refunding Revenue Bonds, Series 1985, relating to the receipts and application of funds. In our opinion, based on our examination of the general purpose financial statements, the Village has complied with such provisions. It should be noted that informa- tion obtained on the basis of our examination of the general purpose financial statements would not necessarily disclose defaults of a nonaccounting nature. 16 Our examination was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The supple- mental information listed in the the table of contents is presented for purposes of additional analysis and is not a required part of the general purpose financial statements of the Village of Tequesta, Florida. The information has been subjected to the auditing proce- dures applied in the examination of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. We did not examine the statistical .data as set forth in the table of contents and, therefore, express no opinion thereon. December 19, 1986 17 GENERAL PURPOSE FINANCIAL STATEMENTS VILLAGE OF TEQUESTA, FLORIDA Combined Balance Sheet - All Fund Types and Account Groups (Continued) September 30, 1986 Assets Cash Cash with fiscal agent Investments Receivables Accounts (net of allowance for uncollectibles) Accrued interest Due from other funds Due from other governments Inventories of supplies Unamortized debt issue costs Restricted assets Cash Investments Accrued interest Fixed assets Amount available in debt service fund Amount to be provided for retirement of general long-term debt Total assets Governmental Fund Types Special Debt General Revenue Service $321,455 $16,103 $ 8,16 1 , 26( 405,000 100,00( 1,153 4,394 2,77: 19, 582 2,805 735 $755,124 $16,103 $112,19' 18 Proprietary Fund Type Enterprise $ 68,566 728,500 143,292 11,958 9,431 78,198 361,154 742,093 12, 580 4,634,883 $6,790,655 Account Groups General General Fixed Long-Term Assets Debt 800,337 $800,337 ----- 110,937 709,833 ______- $820,770 See notes to financial statements. Totals (Memorandum Only) $ 414,288 1,260 1,233,500 144,445 19,125 19,582 2, 805 10,166 78,198 361,154 742,093 12,580 5,435,220 110,937 709,833 $9,295,186 19 VILLAGE OF TEQUESTA, FLORIDA Combined Balance Sheet - All Fund Types and Account Groups (Continued) September 30, 1986 Liabilities and fund equity Liabilities Accounts payable Accrued liabilities Matured interest payable Payable from restricted assets Deposits Due to other funds Deferred revenue Improvement revenue bonds payable Water refunding revenue bonds payable Unamortized debt discount Other liabilities Total liabilities Fund equity Investment in general fixed assets Contributed capital Retained earnings Reserved for revenue bond debt service Unreserved Fund balances Reserved for inventory of supplies Reserved for debt service Reserved for recreation and parks Reserved for encumbrances Unreserved Designated for subsequent year's expenditures Designated for debt service Undesignated Governmental Fund Types Special Debi General Revenue Servi~ $ 65, 757 $ 51,222 1,2~ 75,923 8, 1 30 125,109 15,923 1,2~ 735 20,827 6,865 188,903 412,685 18U 90, 8! 20, 0£ Total fund equity 630,015 180 110,9: Total liabilities and fund equity $755,124 $16,103 $112,1 20 Proprietary Fund Type Enterprise $ 12,584 5,654 121,928 3,659 1,435,000 (39,511) 7.268 1,546,582 1,667,936 993,899 2, 582,'L38 5,244,073 $6,790,655 Account. Groups General General Fixed Long-Term Assets Debt Totals (Memorandum Unly) $ $ $ 78,341 35,770 92,646 1,260 121, 928 19,582 8 , 1 30 785,000 785,000 1,435,000 (39,511) 7,268 820,770 2,509,644 800,337 800,337 1,667,936 993, 899 2,582,238 735 90,855 20, 827 6,865 188,903 20, 082 412,865 800,337 6,785,542 $800,337 $820,770 $9,295,186 See notes to financial statements. 21 VILLAGE OF TEQUESTA, FLORIDA Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - All Governmental r'und Types For the Fiscal Year Ended September 30, 1986 General Revenues Taxes $1,729,412 Licenses and permits 104,014 Intergovernmental revenues 370,315 Charges for services 11,869 Fines and forfeits 42,929 Miscellaneous revenues 74,758 Intragovernmental services 62,400 Total revenues 2,395,697 Expenditures Current General government 357,272 Public safety 1,234,668 Physical environment 240,507 Transportation 200,309 Human services 5,768 Culture/recreation 120,204 Debt service Principal retirement Interest and fiscal charges Total expenditures ~~.~~ Excess of revenues over (under) expenditures 236,969 Other financing sources (uses) Operating transfers in Operating transfers out (75,000) Total other financing sources (uses) 75,0 0) Excess of revenues and other sources over (under) expenditures and other uses 161,969 Fund balances, October 1, 1985 468,046 Fund balances, September 30, 1986 $ 630,015 22 Governmental Fund Types Special Debt Revenue Service Totals (Memorandum Only) $ $ $1,729,412 104,014 15,637 385,952 11,869 42,929 418 14,064 89,240 62,400 16,055 14,064 2,425,816 373,195 15,923 1,234,668 240,507 200, 309 5,768 120, 204 20,000 '10,000 67,896 67,896 15,923 87,896 2,262,547 132 (73,832) 163,269 75,000 75,000 (75,000) 75,000 132 1,168 163,269 48 109,769 577,863 $ 18G $110,937 $ 741,132 See notes to financial statements. 23 VILLAGE OF TEQUESTA, FLORIDA Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual General and Special Revenue Fund Types For the Fiscal Year Ended September 30, 1986 Revenues Taxes Licenses and permits Intergovernmental revenues Charges for services Fines and forfeits Miscellaneous revenues Inteagovernmental services Total revenues Expenditures Current General government Public safety Physical environment Transportation Human services Culture/recreation Contingency Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses) Operating transfers in Operating transfers out Total other financing sources (uses) Excess of revenues and other sources over (under) expenditures and other uses Fund balances, October 1, 1985 Fund balances, September 30, 1986 General Fund Variance Favorable Budget Actual (Unfavorably $1,618,900 93,600 347, 628 9,700 40,400 38,121 62,400 2,210,749 $1,729,412 104,014 370, 315 11,869 42,929 74,758 62,400 2,395,697 $1 10, 512 10,414 22,687 2, 169 2, 529 36, 637 184,948 376,548 1,262,842 243,000 237,075 7,150 131,790 109,000 2,367,405 357,272 1 , 234, 668 240,507 20U, 309 5, 768 1l0, 204 2,158,728 (156,656) 236,969 (75,000) (75,000) (75,000) (75,000) 19,276 28, 174 2,493 36,766 1 , 382 1 1 , 586 109,000 208,677 393,625 $ (231,656) 161,969 $393,625 468,046 24 $ 630,015 Special Revenue Fund Totals (Memorandum Only) Variance - Variance - Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ $ $ $1,618,900 $1,729,412 $110,512 93,600 104,014 10,414 16,276 15,637 (639) 363,904 385,952 22,048 9,700 11,869 2,169 40,400 42,929 2,529 400 418 18 38,521 75,176 36,655 62,400 62,400 676 16 16,055 621) 1,227,425 2,4 , 5 ~,~~ , _ ' 16,676 15,923 753 393,224 373,195 i 20,029 1,262,842 1,234,668 28,174 243,000 240,507 2,493 237,075 200,309 36,766 7,150 5,768 1,382 131,790 120,204 11,586 109,000 109,000 676 16 15,923 753 2,384,081 2,174,651 209,430 , 132 132 (156,656) 237,101 393,757 (75,000) (75,000) (75,000) (75,000) $ 132 48 $ 180 $ 132 $ (231,656) 162,101 468,094 $ 630,195 Cza~_7S7 See notes to financial statements. 25 VILLAGE OF TEQUESTA, FLORIDA Statement of Revenues, Expenses, and Changes in Retained Earnings - Proprietary Fund Type For the Fiscal Year Ended September 30, 1986 Proprietary Fund Type Enterprise Operating revenues Charges for services $1,512,281 Operating expenses Purchased water 466,468 Personal services 176,550 Contractual services 143,860 Supplies 23,243 Heat, light and power 79,161 Repairs and maintenance 52,816 Depreciation 361,268 Bad debts _ 6,884 Total operating expenses 1,310,250 Operating income 202,031 Nonoperating revenues (expenses) Interest revenue 108,328 Interest expense and fiscal charges (134,421) Total nonoperating revenues (expenses) (26,093) Net income 175,938 Retained earnings, October 1, 1985, as restated 3,400,199 Retained earnings, September 30, 1986 $3,576,137 See notes to financial statements. 26 VILLAGE OF TEQUESTA, FLORIDA Statement of Changes in Financial Position - Proprietary Fund Type For the Fiscal Year Ended September 30, 1986 Proprietary Fund Type Enterprise Sources of working capital Operations Net income $175,938 Items not requiring working capital Depreciation 361,268 Amortization of debt discount and issue costs 12,391 Working capital provided by operations 549,597 Contributions 446,773 Increase in other liabilities 553 Increase in current liabilities payable from restricted assets 6,845 Total sources of working capital 454,171 Uses of working capital Acquisition of property, plant and equipment 386,538 Increase in restricted assets 427,751 Decrease iri long-term debt 65,000 Total uses of working capital 879,289 Net decrease in working capital $124,479 Elements of net increase (decrease) in working capital Cash $(87,756) Investments 123,500 Accounts receivable (17,831) Accrued interest receivable 7.533 Prepaid expenses (1,511) Inventories (1,666) Accounts payable and accrued liabilities 101,424 Due to other funds 786 Net increase in working capital $124,479 See notes to financial statements. 27 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1986 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Consideration of Definition of the Reporting Entit This report includes all of the funds and account groups of the Village. It also includes all activities considered to be part of (controlled by or dependent on) the Village, as determined by the application of the criteria set forth in "Defining the Governmental Reporting Entity - NCGA Statement 3." In accordance with NCGA Staements 3 and 7, for financial reporting purposes, the Village's financial statements include all funds, account groups, departments, agencies, boards, commissions and other organizations over which Village officials exercise oversight responsibility. Oversight responsibility includes such aspects as appointment of governing body members, budget approval, approval of property tax levies, outstanding debt secured by Village's full faith and credit or revenues, responsibility for funding deficits and others. As in prior years, the Village found that there were no entities to consider when attempting to implement NCGA Statements 3 and 7. Therefore, the criteria in Statement 3 did not require the inclusion of any entity as an accompanying unit in the Village's financial statements. Funds and Account Groups The accounts of the Village are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a sepa- rate set of self-balancing accounts that comprise its assets, liabil- ities, fund equity, revenues, and expenditures, or expenses, as appropriate. The various funds are grouped, in the financial state- ments in this report, into four generic fund types and two broad fund categories as follows: 28 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1986 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Governmental Fund Types (Continued) General Fund The General Fund is the general operating fund of the Village. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Fund The Special Revenue Fund is used to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, or major capital projects) that are legally restricted to expenditures for specified purposes. The Special Revenue Fund used by the Village is the Federal Revenue Sharing Fund which accounts for revenue received from the Federal government under the Federal Revenue Sharing Program. Debt Service Fund The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, long-term debt principal, interest, and related costs. The Debt Service Fund of the Village accumulates monies for payment of the Improvement Reve- nue Bonds, Series 1979. Proprietary Fund Type Enterprise Fund The Enterprise Fund is used to account for operations that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. The Enterprise Fund of the Village is t for the provision of water servic Village and some residents of t necessary to provide such service fund including, but not limited to, maintenance, financing and related collection. he Water Fund which accounts es to the residents of the he County. All activities s are accounted for in this administration, operations, debt service and billing and 29 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1986 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Fixed Assets and Lona-Term Liabilities The accounting and reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are determined by its measurement focus. All governmental funds are accounted for on a spending or "financial flow" measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance (net current assets) is considered a measure of "available spendable resources." Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable re- sources" during a period. Fixed assets used in governmental fund type operations (general fixed assets) are accounted for in the General Fixed Assets Account Group, rather than in governmental funds. Public domain ("infrastructure") general fixed assets consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems, are not capital- ized. No depreciation has been provided on general fixed assets. All fixed assets are valued at historical cost or estimated histori- cal cost if actual historical cost is not available. Donated fixed assets are valued at their estimated fair value on the date donated. Long-term liabilities expected to be financed from governmental funds are accounted for in the General Long-Term Debt Account Group, not in the governmental funds. The two account groups are not "funds." They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. Special reporting treatments are also applied to governmental fund inventories to indicate that they do not represent "available spenda- ble resources," even though they are a component of net current assets. Such amounts are offset by fund balance reserve accounts. 30 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1986 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Fixed Assets and Lonq-Term Liabilities (Continued) Because of their spending measurement focus, expenditure recognition for governmental fund types is limited to exclude amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. They are instead reported as liabilities in the General Long-Term Debt Account Group. The proprietary fund is accounted for on a cost of services or "capi- tal maintenance" measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with its activity are included on its balance sheet. The reported fund equity (net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund type operating state- ments present increases (revenues) and decreases (expenses) in net total assets. Depreciation of all exhaustible fixed assets used by the proprietary fund is charged as expense against the operations. Accumulated depreciation is reported on the proprietary fund balance sheet. Depreciation has been provided over the estimated useful lives using the straight-line method. The estimated useful lives are as follows: Buildings 40 years Improvements 20 - 25 years Equipment 4 - 10 years Basis of Accounting Basis of accounting refers to when revenues and expenditures or ex- penses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the mea- surements made, regardless of the measurement focus applied. All governmental funds are accounted for using the modified accrual basis of accounting.. Their revenues are recognized when they become measurable and available as net current assets. 31 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1986 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of Accounting (Continued) Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. An exception to this general rule includes principal and interest on general long-term debt which is recognized when due. The proprietary fund is accounted for using the accrual basis of accounting. Revenues are recognized when they are earned, and the expenses are recognized when they are incurred. Unbilled Water Fund utility service receivables are recorded at year end, Interfund transactions Following is a description of the basic types of interfund transac- tions made during the year and the related accounting policy: Transactions for services rendered or facilities provided. These transactions are recorded as revenue in the receiving fund and expenditures in the disbursing fund. Transactions to transfer revenue or contributions from the fund budgeted to receive them to the fund budgeted to expend them. These transactions are recorded as operating transfers in and out. Compensated Absences Accumulated unpaid vacation and sick leave amounts are accrued when incurred. In governmental funds, the current liability to be liqui- dated with expendable available financial resources is recorded in the specific fund, with the remainder of the liability reported in the General Long-Term Debt Account Group. The Proprietary Fund records its respective share of the liability in total. Encumbrances The Village records encumbrances, if any, as a reservation of fund balance until expended or accrued as a liability of the fund. Encum- brances at September 30, 1986 and 1985 were $6,865 and $2,000, respectively. 32 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1986 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Revenue Recognition Ad Valorem Taxes Ad valorem taxes are assessed as of January 1 and billed the following October. They are due and payable on November 1 of each year or as soon thereafter as the assessment roll is certified and delivered to the Tax Collector. These taxes are collected by the County and remitted to the Village. Revenue is recognized at the time monies are received from the County. All unpaid taxes become delinquent on April 1 following the year in which they are assessed. Discounts are allowed for early payment at the rate of 4$ in the month of November, 3~ in the month of December, 2$ in the month of January and 1$ in the month of February. The taxes paid in March are without dis- count. At September 30, unpaid delinquent taxes, if any, are reflected as a receivable on the balance sheet and are fully reserved. The Village does not accrue property tax revenues since the collection of these taxes coincides with the fiscal year in which levied, and since the Village consistently has no mate- rial uncollected property taxes at year end. Federal Revenue Sharing Entitlement Payments Revenue sharing payments are normally received within 10 days following the end of each entitlement period. Revenue is recognized on the last day of each entitlement period at which time the revenue has become both measurable and available. The revenue payment for the last entitlement period of the fiscal year is susceptible to accrual under the modified accrual basis. Budgets and Budgetary Accounting Formal budgetary integration is employed as a management control device during the year for the General Fund and Special Revenue Fund. Tie Finance Department maintains control over expenditures of the debt service fund through the use of bond indenture provisions and informal budgets. Budgets for the General and Special Revenue Funds are adopted on a basis consistent with generally accepted accounting principles. For budgeting purposes, current year encumbrances are not treated as expenditures. 33 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1986 NO'PE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Budgets and Budgetary Accounting (Continued) The Village follows these procedures in establishing the budgetary data reflected in the financial statements: 1. Prior to September 1, the Village Manager submits to the Village Council a proposed operating budget for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 3. Prior to October 1, the budget is legally enacted through passage of a resolution. Changes or amendments to the total budgeted expenditures of the Village total departmental expenditures or items within a department must be approved by the Village Council. 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. Appropri- ations are legally controlled at the departmental level within funds and expenditures may not legally exceed budgeted appropriations at that level. During the year, the Village did not make any supplemental appropria- tion increases but did make several administrative changes on the departmental level. The Village has complied with the Florida requirement that budgets be in balance. The General Fund and Special Revenue Fund budgets re- flected in the accompanying financial statements are not balanced because they do not include amounts budgeted from beginning fund balance. Appropriations which are neither expended or specifically designated to be carried over lapse at the end of the fiscal year. A budget for operating expenses of the Water Fund is also adopted on a basis consistent with generally accepted accounting principles in accordance with requirements of Ordinance 260-Water Refunding Revenue Bonds, Series 1978. 34 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1986 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Investments Investments, consisting of certificates of deposits, U.S. treasury obligations and money market accounts are stated at cost or amortized cost, which approximates market. Inventories Inventories are valued at cost (first-in, first-out) or market. Inventories in the General Fund consist of expendable supplies held for consumption. The cost is recorded as an expenditure at the time individual inventory items are purchased. Reported inventories are equally offset by a fund balance reserve which indicates that they do not constitute "available spendable resources" even though they are a component of net current assets. Amortization The issue costs and debt discount on long-term debt are amortized over the life of the bonds using the straight-line method. Total Columns on Combined Statements The Total columns on the combined statements are captioned "Memoran- dum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. NOTE 2 - INTERFUND ADMINISTRATIVE FEE During the year ended September 30, 1986, the Enterprise Fund remitted $62,400 to the General Fund for administrative management fees. This amount is reflected as intragovernmental services revenue in the General Fund and as contractual services operating expenses in the Enterprise Fund. 35 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1986 NOTE 3 - PENSION PLAN All full-time Village employees are eligible to participate in the noncontributory Florida Retirement System as authorized by Chapter 121 of the Florida Statutes. Total pension costs for the year ended September 30, 1986 were $121,137 (General Fund $105,005 Enterprise Fund $16,132). The funding methods and the determination of benefits payable are provided in various acts of the State Legislature. All accounting records relating to the Retirement System are maintained by the State on a statewide basis only. At September 30, 1986, information was not available with regard to the excess of the actuarially computed vested benefits over pension fund assets relating to employees of the Village. Actuarial valuations of the system are required by State Statute on a periodic basis. NOTE 4 - ACCOUNTS RECEIVABLE - ENTERPRISE FUND Accounts receivable of $143,292 are stated net of a $1,500 allowance for doubtful accounts and consist of billed revenues totaling $120,078 and unbilled revenues totaling $24,714. NOTE 5 - COMPENSATED ANNUAL LEAVE AND SICK PAY In accordance with Statement 4 of the National Council on Government- al Accounting, vacation pay and sick pay are recorded when earned by employees. As of September 30, 1986, the total liability for compen- sated absences was $71,173. The current liability in the General Fund was $27,125. The noncurrent portion of compensated absence liability of the General Fund is recorded in the Long-Term Debt Group. For the fiscal year ended September 30, 1986, the long-term amount was $35,770. The liability recorded by the Enterprise Fund was $8,278. NOTE 6 - LONG-TERM DEBT Water Fund: Water Refunding Revenue Bonds, Series 1985 were issued pursuant to Resolution 2-84/85 enacted by the Village Council on October 23, 1984, for a total principal amount of $1,525,000. 36 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1986 NOTE 6 - LONG-TERM DEBT (Continued) Water Fund: (Continued) Resolution 2-84/85 provides for the disposition of all revenues derived from the operation of the water system. Revenues are first to be used for payment of all current operating expenses. Revenues are next to be used for the required payments for principal and inte- rest on, and reserve for, the outstanding water refunding revenue bonds. Revenues are next to be used to maintain the renewal, replacement and improvement of the water system. Such payments to the renewal and replacement fund are made monthly equal to one-twelfth of the esti- mated annual cost of extensions, additions to, enlargements and replacement of capital assets of the system and emergency repairs thereto, such cost to be established by recommendation of the con- sulting engineer. Finally, any revenues remaining may be used for any lawful purpose. The Resolution requires the establishment of the following accounts: Account Purppse _ Revenue Account To collect the entire gross revenues except invest- m t e , derived from the sys ment earnings. Operation and To pay fully accrued operating expenses. Maintenance Account Sinking Account To accumulate sufficient funds to meet uirements through i ce req annual debt serv transfers from the Revenue Account. Bond Amortization Established within the Sinking Account Account to meet principal payment on the debt. Reserve Account To accumulate funds for payment of principal and interest only if funds in the Sinking Account are insufficient. Renewal and Replacement To accumulate funds for the purpose of Account funding the cost of extensions, addi- tions to, enlargements and replacement of capital assets of the system and emergency repairs thereto. 37 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1986 NOTE 6 - LONG-TERM DEBT (Continued) Water Fund: (Continued) The annual requirements to amortize the debt are as follows: Fiscal Year Ending September 30 Principal Interest Total 1987 $ 35,000 $ 58,797 $ 93,797 1988 70,000 114,311 184,311 1989 80,000 109,505 189,505 1990 80,000 103,805 183,805 1991 90,000 97,667 187,667 1992 95,000 90,749 185,749 1993 105,000 83,005 188,005 1994 185,000 74,199 259,199 1995 275,000 55,143 330,143 1996 300,000 30,592 330,592 1997 120,000 5,340 125,340 $1,435,000 $ 823,113 $2,258,113 The Village is obligated by the securities contract to purchase an aggregate of $980,000 par amount of U.S. Treasury Bonds due Febru- ary 15, 2007, bearing interest at 7-5/8~, at an aggregate purchase price of $928,323.57. Purchase must be made semi-annually on April 1 and October 1 from April 1, 1985 through October 1, 1993, at semi- annual prices increasing from approximately $33,000 in 1985 to approximately $71,000 in 1993. Neither the U.S, Treasury Bonds nor their income is pledged for payment of the refunding bonds. However, the purchase prices of the Treasury Bonds are added to gross debt service and the income from the Treasury Bonds is subtracted from gross debt service to compute bond service requirements. Debt issue expense and bond discount on the Water Refunding Revenue Bonds, Series 1985, are being amortized over the life of the bonds. General Long-Term Debt: This debt consists of Improvement Revenue Bonds Series 1979, dated October 1, 1979, in the amount of $910,000 with interest rates ranging from 8.30 to 8.50. At September 30, 1986, $785,000 of this issue, which consists of term and serial bonds, were outstanding. The guaranteed entitlement portion of state revenue sharing trust funds, public service utilities taxes, fran- chise fees and occupational license taxes have been pledged. The bonds will be repaid through the Debt Service Fund. 38 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1986 NOTE 6 - LONG-TERM DEBT (Continued) General Long-Term Debt: (Continued) Annual requirements to amortize this debt are as follows: Coupon Total Rate Principal Interest Payments 1987 October 1 8.40$ $ 25,000 $ 65,855 $ 90,855 1988 October 1 8.40$ .25,000 63,755 88,755 1989 October 1 8.30$ 25,000 61,655 86,655 1990 October 1 8.30$ 30,000 59,580 89,580 1991 October 1 8.30$ 30,000 57,090 87,090 1992 October 1 8.40 54,600 54,600 1993 October 1 8.408 54,600 54,600 1994 October 1 8.40 54,600 54,600 1995 October 1 8.40$ 54,600 54,600 1996 October 1 8.40$ 54,600 54,600 1997 October 1 8.40$ 54,600 54,600 1998 October 1 8.40$ 54,600 54,600 1999 October 1 8.40 54,600 54,600 2000 October 1 8.40$ 54,600 54,600 2001 October 1 8.40 54,600 54,600 2002 October 1 8.40$ 54,600 54,600 2003 October 1 8.408 54,600 54,600 2004 October 1 8.40$ 650,000 54,600 704,600 Totals $785,000 $1,017,735 $1,802,735 Monies will be deposited into a bond amortization account for the retirement of the 2004 term bonds on October 1 in such years and such amounts as follows: Year Amount Year Amount 1992 $ 35,000 1999 $ 55,000 1993 35,000 2000 55,000 1994 40,000 2001 60,000 1995 40,000 2002 65,000 1996 45,000 2003 70,000 1997 45,000 2004 55,000 1998 50,000 39 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1986 NOTE 6 - LONG-TERM DEBT (Continued) General Long-Term Debt: (Continued) The annual requirements to amortize all outstanding debt including interest payments of $1,900,650 as of September 30, 1986 are as follows Fiscal Year Ending Compensated Improvement Water September 30 Absences Revenue Revenue Total 1987 $ $ 90,855 $ 188,599 $ 279,454 1988 88,755 184,311 273,066 1989 86,655 189,505 276,160 1990 89,580 183,805 273,385 1991 87,090 187,667 274,757 1992 54,600 185,749 240,349 1993 54,600 188,005 242,605 1994 54,600 259,199 313,799 1995 54,600 330,143 384,743 1996 54,600 330,592 385,192 1997 54,600 125,340 179,940 1998 54,600 54,600 1999 54,600 54,600 2000 54,600 54,600 2001 54,600 54,600 2002 54,600 54,600 2003 54,600 54,600 2004 704,600 704,600 Various 35,770 35,770 $35,770 $1,802,735 $2,352,915 $4,191,420 Annual maturities of long-term compensated absences cannot be reason- ably determined. 40 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1986 NOTE 6 - LONG-TERM DEBT (Continued) Changes in Long-Term Debt: Transactions for the Village for the year ended September 30, 1986 are summarized as follows: Improvement Compensated Revenue Absences Bonds Long-term debt at October 1, 1985 $32,237 Add: Compensated absences 3,533 Less: Bonds retired Long-term debt at September 30, 1986 $35,770 Interest Expense Water Revenue Bonds Total $805,000 $1,500,000 $2,337,237 3,533 20,000 65,000 85,000 $785,000 $1,435,000 $2,255,770 Interest expense on long-term debt for the fiscal year ended Septem- ber 30, 1986 totaled $188,003 (general long-term-debt -.$67,535; Enterprise Fund - $120,468). NOTE 7 - LEASE COMMITMENTS The Village presently has no material lease commitments. In addi- tion, the Village has no commitments under lease purchase or similar contractual arrangements. NOTE 8 - CONTRIBUTED CAPITAL - ENTERPRISE FUND Contributed capital consists of the following: Contributions from capital improvement charges .$1,094,272 Contributions from developers 573,664 ' $1,667,936 For the year ended September 30, 1986, contributions from capital improvement charges totaled $95,741 and contributions from developers totaled $351,032. 41 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1986 NOTE 9 - LONG-TERM AGREEMENT TO PURCHASE WATER On July 15, 1976, the Village entered into an agreement with Tri- Southern Utilities Company, Inc. (the agreement subsequently assumed by the Town of Jupiter) to purchase water for the Village's water system for a period of 30 years. Rates for water service are based on wholesale rates. The Village is billed monthly based upon a 1,500,000 gallons per day contracted minimum. NOTE 10 - INTERFUND RECEIVABLES AND PAYABLES Individual fund interfund receivables and payables at September 30, 1986 are as follows: Interfund Fund Receivables General Fund $19,582 Special Revenue Fund Enterprise Fund $19,582 NOTE 11 - COMPONENTS OF FIXED ASSETS A summary of changes in general fixed assets follows: Balance October 1, 1985 Land $ 35,000 Buildings 214,832 Equipment 352,881 Improvements other than buildings 93,661 Total $696,374 Additions 71,533 32,785 5104.318 42 Interfund Payables 15,923 3,659 $19,582 -Balance September 30, Deletions 1986 $ $ 35,000 214,832 355 424,059 126,446 $ 355 $800,337 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1986 NOTE 11 - COMPONENTS OF FIXED ASSETS (Continued) The components of f fixed assets at September 30, 1986 are summarized as follows: General Land Buildings Improvements other than buildings Machinery and equipment Accumulated depreciation Total NOTE 12 - LITIGATION Enterprise Fixed Assets Fund Account Group Total $ 92,042 $ 35,000 $ 127,042 388,592 214,832 603,424 5,914,061 126,446 6,040,507 233,055 424,059 657,114 6,627,750 800,337 7,428,087 1,992,867 _ 1,992,867 $4,634,883 $800,337 $5,435,220 The Village, in accordance with the normal conduct of its affairs, is involved in various judgments, claims and litigations. It is expect- ed that the final settlement of these matters will not materially affect the financial statements of the Village. NOTE 13 - PRIOR PERIOD ADJUSTMENT Retained earnings at the beginning of the 85/86 fiscal year has been adjusted to correct an error in matured interest payable, which was previously understated due to the use of an erroneous amortization schedule. Had the error not been made, net income for the 84/85 fiscal year would have decreased by $27,267, as would the gain on extinguishment of debt. Retained earnings at October 1, 1985 has accordingly been decreased by $27,267. 43 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Revenues - Budget and Actual For the Fiscal Year Ended September 30, 1986 Taxes Current ad valorem taxes Delinquent ad valorem taxes Franchise fees Utility service taxes Total taxes Budget $1,100,000 1,200 217,700 300,000 ,618,900 Actual $1,126,221 1,907 245,260 356,024 1,729,412 Licenses and permits Professional and occupational licenses Building permits Other licenses and permits Total licenses and permits Intergovernmental revenues Cigarette tax State revenue sharing Alcoholic beverage licenses Municipal fuel tax Local option gas tax Countywide registrations One-half cent sales tax Total intergovernmental revenues Charges for services Zoning fees Map sales Certification, copying, record search Building inspection service Municipal police academy Tennis lights Total charges for services 40,000 50,000 3,600 93,600 16,000 129,228 5,200 1,800 45,000 20,400 130,000 347,628 750 350 600 1,500 3, 500 3,000 9,700 44 43,063 58,336 2,615 104,014 16, 573 129,234 7, 797 2,041 51,832 21,308 141,530 370,315 1,275 534 907 2,882 3,277 2,994 11,869 Variance Favorable (Unfavorable $ 26,221 707 27,560 56,024 110,512 3, 063 8,336 (985) 10,4,14 573 6 2, 597 241 6, 832 908 11,530 22,687 525 1 84 307 1,382 (223) (6) 2, 169 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Revenues - Budget and Actual For the Fiscal Year Ended September 30, 1986 Fines and forfeits Court fines Parking tickets Total fines and forfeits Miscellaneous revenues Interest Contribution for park land Other Abandoned bicycle sales Total miscellaneous revenues Intragovernmental services Administrative management - water fund Total revenues Variance - Favorable Budget Actual (Unfavorable) $ 40,000 $ 42,309 $ 2,309 400 620 220 40,400 42,929 2,529 35,000 48,575 13,575 21,375 21,375 3, 000 4, 687 1, 687 121 121 38,121 74,758 36,637 62,400 62,400 $2,210,749 $2,395,697 45 $184,948 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1986 Budget General government Legislative Travel and per diem Other charges Total legislative Executive Village manager's salary F.I.C.A. Retirement Life and health insurance Deferred compensation plan Worker's compensation insurance Travel and per diem Other charges Machinery and equipment Books, publications, dues Village clerk's salary F.I.C.A. Retirement Life and health insurance Worker's compensation insurance Travel and per diem Other charges Operating supplies Books, publications, dues Repairs and maintenance - office machines Total executive Variance - Favorable Actual (Unfavorable $ 6,450 $ 6,449 $ 1 100 99 1 6,550 6,548 2 48,000 45,837 2,163 3,450 3,335 115 5, 660 5, 532 128 1,500 1,499 1 875 7621 113 150 146 4 2,965 2,960 5 1,000 767 233 2,000 1,998 2 100 54 46 19,230 9,608 9,622 1,491 716 775 2,309 1,473 836 2,897 2,408 489 100 75 25 2,000 1,911 89 1,725 1,721 4 350 217 133 75 67 8 125 115 10 96,002 81,201 1~1 Financial and administrative Finance director's and bookkeeper's salary F.I.C.A. Retirement Life and health insurance 44,448 45,372 (924) 3,170 3,153 17 5, 378 5, 360 18 2,750 2,741 9 46 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiseal Year Ended September 30, 1986 Variance - Favorable Bud et Actual (Unfavorable) General government (continued) Financial and administrative (continued) Worker's compensation $ $ $ insurance 175 157 18 Accounting and auditing 17,500 17,470 30 Travel and per diem 1,100 1,010 90 Other charges 400 315 85 Office supplies 1,600 1,416 184 Books, publications, dues 150 96 54 Machinery and equipment 400 350 50 Repairs and maintenance - office machines 3,200 3,020 180 Total financial and administrative 80,271 80,460 (189) Legal counsel Legal services 42,150 42,135 15 Total legal counsel 42,150 42,135 15 Planning and zoning Planning service 12,000 11,851 149 Comprehensive plan revision 6,000 4,920 1,080 Other current charges 200 200 Other general government Salaries 13,750 13,494 256 F.I.C.A. 985 945 40 Retirement 1,685 1,576 1Q9 Life and health insurance 1,205 1,205 Worker's compensation insurance 50 43 7 Unemployment compensation 700 700 Employee recognition program 1,990 1,000 990 47 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1986 General government (continued) Budget Variance Favorable Actual (Unfavorabl Other general government (continued) Travel and per diem $ 110 $ 110 $ Communication services 3,700 2,973 727 Postage 3,200 2,800 400 Utility services 9,000 8,662 338 Fire hydrant rental fees 11,400 11,400 Leases 5,100 5,033 67 Insurance 26,000 24,938 1,062 Village Hall maintenance 9,675 9,674 1 Office machines maintenance 250 95 155 Other charges 11,775 11,773 2 Office supplies 4,050 4,039 11 Books, publications, dues 1,200 941 259 Machinery and equipment 9,700 11,607 (1,907) Aid to private organizations 14,100 14,100 Other grants and aids 3,750 3,749 1 Total other general government 133,375 130,157 3,218 Total general government 376,548 357,272 19,276 Public safety Police department Salaries 462,323 462,304° 19 Overtime 37,000 36,460 540 F.I,C.A. 35,577 35,097 480 Retirement 70,878 68,079.E 2,799 Life and health insurance 51,000 49,469 1,531 48 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1986 Public safety (continued) Police department (continued) Worker's compensation insurance Travel and per diem Communication services Leases Insurance Repairs and maintenance - cars Repairs and maintenance - office equipment Repairs and maintenance - radio communications Repairs and maintenance - other Printing and binding Other charges Personnel training Office supplies Gasoline and oil Uniforms and equipment Books, publications, dues Machinery and equipment Variance - Favorable Budget Actual (Unfavorable) $ 19,000 $ 18,790 $ 210 7, 489 5, 372 2, 1 17 5,600 5,422 178 450 408 42 22,000 21,504 496 14,200 13,835 365 3,420 3,144 276 3,300 975 600 3,507 5,225 4,750 24,000 6,870 450 28,060 Total police department Detention and/or correction Other contractual services - P.B.C. Sheriff's Department Total detention and/or correction Protective inspections 806,674 3, 268 957 347 2,686 5,217 4, 1 10 20,606 6,815 408 21,751 786,049 32 18 253 821 8 640 3, 394 55 42 6,309 20,625 150 150 150 150 ,Salaries 66,880 66,353` 538 F.I.C.A. 4,765 4,727 8,090 8,037 53 Retirement 10 Life and health insurance 8,715 8,705 49 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1986 Public safety (continued) Budget Actual Variance Favorable (Unfavorabl Protective inspections (continued) Office supplies $ Worker's compensation insurance Travel and per diem Communication services Other charges Books, publications, dues Machinery and equipment Repairs and maintenance - office machines Total protective inspections Emergency and disaster relief Civil preparedness Contingency fund Capital outlay Machinery and equipment Total emergency and disaster relief Fire protection and emergency medical service Palm Beach County contractual services Other professional services Total fire protection and emergency medical service Total public safety Physical environment Contractual services - garbage and trash Total physical environment Transportation Road and street facilities Salaries Overtime F.I.C.A. 3, 730 $ 3, 721 $ 9 3,250 3,246 4 2,600 2,398 202 2,000 1,799 201 150 5 145 570 563 7 5,300 5,257 43 400 240 160 106,450 105,051 500 500 5,000 5,000 500 500 6,000 6,000 335,910 335,910 7,658 7,658 _ 343,568 343,568 1,262,842 1,234,668 28,174 243,000 240,507 2,493 243,000 240,507 2,493 50 78,100 77,598' 502 1,000 584 416 5,700 5,487 213 VILLAGE OF TEQUES`PA, FLORIDA General Fund Schedule °theeFiscalnYearEEnded1SeptembeBu30et1986 Actual For Variance - Favorable Budget Actual (Unfavorable) Transportation (continued) Road and street facilities (continued) Retirement Life and health insurance Worker's compensation insurance Travel and per diem Communication services Street lights Insurance Repairs and maintenance - truck and tractor Repairs and maintenance - drainage Repairs and maintenance - general Other charges Gasoline and oil - truck and tractor Gasoline and oil - other Small tools Traffic signs Road materials and supplies Capital outlay Road improvements Machinery and equipment Improvements other than buildings Improvements other than buildings $ 9, 500 $ 9, 014 11,030 9.807 6,200 5,737 50 500 493 17,500 17.078 6,000 5.787 2,000 735 10,775 9,379 30,800 30,791 100 38 2,000 1,244 250 183 800 645 1,000 845 4,000 3,710 27,000 5,670 4,145 17,100 17,009 $ 486 1,223 463 50 7 422 213 1, 265 1, 396 62 Total transportation Human services Health - mosquito control Salaries F.I.C.A. Retirement Repairs and maintenance - equipment 756 67 155 155 290 27,000 1,525 91 17,100 17,009 91 ----- 237,075 200,309 36,766 2,000 1,174 820 160 40 100 100 200 100 100 51 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 198b Human services (continued) Budget Variance Favorable Actual (Unfavorably Health - mosquito control (continued) Flushing solution $ 350 $ 300 $ 50 Other charges 45 45 Gasoline and oil 150 30 120 Insecticide 4,145 4,124 _ 21 Total human services $ 7,150 5,768 1,382 Culture/Recreation Parks and recreation Salaries 49,800 49,450 350 Overtime 300 62~ 238 F.I.C.A. 3,920 3,638 282 Retirement 5,725 5,933 (208) Life and health insurance 3,320 3,133 187 Worker's compensation insurance 1,525 1,507 18 Travel and per diem 1,250 1,244 6 Communication services 500 429 71 Utility services -trailer and office 4,000 3,542 458 Utility services -field lights 4,400 4,380 20 Utility services - security lights 300 238 62 Utility services - water 950 930 20 Insurance 2,600 2,572 28 Buildings, equipment and grounds repairs and maintenance 10,250 10,227 23 Fields repairs and maintenance 5,000 4,525 475 Truck repairs and maintenance 88 (88) Park repairs and maintenance 500 500 Other charges 50 50 52 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1986 Culture/Recreation (continued) Parks and recreation (continued) Office supplies Gasoline and oil -truck and tractor Small tools and minor equipment Program expense Books, publications, dues Playground parks - wood fence Machinery and equipment Dover Road park improvements Village Green improvements Total culture/recreation Contingency Total expenditures Variance - Favorable Budget _ Actual (Unfavorable) $ 200 $ 184 $ 16 600 520 80 1,200 575 625 1,200 737 463 100 10 90 2,100 2,067 33 12,000 10,504 1,496 20,000 20,000 13,709 (13,709) 131,790 120,204 11,586 109,000 109,000 $2,367,405 $2,158,728 $208,677 53 VILLAGE OF TEQUESTA, FLORIDA Enterprise Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended September 30, 1986 Budget Actual Variance - Favorable (Unfavorable Purchased water $467,000 $466,468 $ 532 Personal services Wages $138,777 $129,065 $ 9,712 F.I.C.A. taxes 10,035 9,478 557 Retirement 16,241 16,132 109 Life and health insurance 24,255 21,875 2,380 Employee recognition program 600 600 Total personal services 189,908 176,5 3, 58 Contractual services Insurance $ 14,800 $ 13,053 $ 1,747 Professional services 15,500 12,385 3,115 Communication services 5,350 5,080 270 Rentals 1,450 1,336 114 Legal 2,500 606 1,894 Engineering 26,000 23,015 2,985 Accounting and auditing 17,000 16,783 217 Other current charges 1,103 1,996 (893) Licenses and fees 1,750 1,640 110 Administrative management 63,000 62,400 600 Personnel training and travel 6,300 5,566 734 Total contractual services 154,753 1 ,$~b Supplies Office supplies $ 6,650 $ 6,494 $ 156 Truck gas and oil 3,000 2,205 795 Chemicals 16,950 13,998 2,952 Small tools 500 180 320 Laboratory supplies 300 61 239 Diesel fuel 300 300 Books 325 305 20 Total supplies $ 28,025 23,23 4,7 2 Heat, light and power $ 80,975 $ 79,161 $ 1,814 Repairs and maintenance $148,100 $ 52,816 $ 95,284 54 VILLAGE OF TEQUESTA, FLORIDA Enterprise Fund Comparative Summary of Operations For the Fiscal Years Ended September 30, 1986 and 1985 Operating revenues Operating expenses Operating income Nonoperating revenues (expenses) Income before extraordinary item Operating transfers in (out) Income before extraordinary item Extraordinary item Net income (loss) 1986 1985 $1,512,281 $1,400,742 1,310,250 1,224,135 202,031 176,607 (26,093) (22,376) 175,938 154,231 175,938 96,673 250,904 $ 175,938 842,754 $1,093,658 55 VILLAGE OF TEQUESTA, FLORIDA Enterprise Fund Schedule of Restricted Accounts Under Revenue Bond Ordinance For the Fiscal Year Ended September 30, 1986 Sinking Account Balance, October 1, 1985 Cash and investments $ 2,479 Unamortized discount on investments Accrued interest receivable 2,479 Increases Transfers from unrestricted accounts 264,000 Investment earnings -5,643 Transfers from restricted accounts 221,200 Total 490,843 Decreases Capital outlay 120,467 Interest payments 313 Transfers to other restricted accounts 371,200 Total 491,980 Balance, September 30, 1986 Cash and investments 1,342 Unamortized discount on investments Accrued interest receivable Total $ 1,342 56 Bond Renewal and Amortization Reserve Replacement Account Account Account $ 73,391 $267,344 $ 4,061 (2,391) 1,794 28 71,072 269,138 4,089 12,000 5,744 16,350 306 117,563 351,240 123,307 367,590 12,306 11, 181 30,714 344,800 30,714 344,800 11,181 167,677 288,020 5,192 (9,407) 5,395 3,908 22 $163,665 $291,928 $ 5,214 57 VILLAGE OF TEQUESTA, FLORIDA Amortization Schedule $1,525,000 Water Refunding Revenue Bonds - Series 1985 September 30, 1986 The debt was incurred on January 1, 1985, through the issuance of $1,525,000 water refunding revenue bonds. The proceeds were used to refund a portion of the outstanding Series 1978 water refunding revenue bonds. The bonds are secured by the net revenues of the Water Fund. On September 30, 1986, the outstanding bonds totaled $1,435,000; the payment schedule follows: Due Date Principal Interest Total 1987 April 1 35,000 58,796 93,796 1987 Oct. 1 , 35,000 57,703 92,703 1988 April 1 35,000 56,609 91,609 1988 Oct. 1 40,000 55,427 95,427 1989 April 1 40,000 54,078 94,078 1989 Oct. 1 40,000 52,627 92,627 1990 April 1 40,000 51,178 91,178 1990 Oct. 1 45,000 49,677 94,677 1991 April 1 45,000 47,990 92,990 1991 Oct. 1 45,000 46,246 91,246 1992 April 1 50,000 44,503 94,503 1992 Oct. 1 50,000 42,502 92,502 1993 April 1 55,000 40,503 95,503 1993 Oct. 1 55,000 38,234 93,234 1994 April 1 130,000 35,965 165,965 1994 Oct. 1 135,000 30,440 165,440 1995 April 1 140,000 24,702 164,702 1995 Oct. 1 150,000 18,578 168,578 1996 April 1 ~---C 150,000 12,015 162,015 1996 Oct. 1 120,000 5,340 125,340 Totals $1,435,000 $ 823,113 $2,258,113 58 VILLAGE OF TEQUESTA, FLORIDA Schedule of General Fixed Assets By Source September 30, 1986 General fixed assets Land $ 35,000 Building and improvements 214,832 Equipment 424,059 Improvements other than buildings 126,446 Total general fixed assets $800,337 Investment in general fixed assets General Fund revenue $729,025 Special Revenue Fund revenue (Federal Revenue Sharing) 71,312 Total investment in general fixed assets $800,337 59 VILLAGE OF TEQUESTA, FLORIDA Schedule of General Fixed Assets By Function and Activity September 30, 1986 Buildings and Total Land Improvements Equipment General government $201,030 $35,000 $127,892 $ 38,138 Public safety 205,982 14,180 191,802 Transportation 74,821 19,791 55,030 Human services 4,810 4,810 Culture/recreation 80,297 64,771 15,526 Total general fixed assets Allocated to functions 566,940 35,000 226,634 305,306 Prior year data which . cannot be allocated 233,397 114,644 118,753 Total general fixed assets $800,337 $35,000 $341,278 $424,059 60 VILLAGE OF TEQUESTA, FLORIDA Schedule of Changes in General Fixed Assets By Function and Activity September 30, 1986 Function and Activity General government Public safety Transportation Human services Culture/recreation Prior to allocation by function General General Fixed Assets Fixed Assets October 1, September 30 1985 Additions Deletions 1986 $187,075 $ 13,955 $ 355 $201,030 163,052 42,930 205,982 54,023 21,153 355 74,821 4,810 4,810 54,017 26,280 80,297 462,977 $104,318 $ 355 566,940 233,397 $696,374 233,397 ~unn_~~~ 61 VILLAGE OF TEQUESTA, FLORIDA Amortization Schedule Improvement Revenue Bonds - Series 1979 September 30, 1986 The debt was incurred on April 1, 1980, through the issuance o $910,000 improvement revenue bonds. The proceeds were used for pavin and drainage improvements. On September 30, 1986, the outstandin bonds totaled $785,000: Coupon Rate Principal Interest Total Payments 1987 October 1 8.40 $ 25,000 $ 65,855 $ 90,855 1988 October 1 8.40 25,000 63,755 88,755 1989 October 1 8.30 25,000 61,655 86,655 1990 October 1 8.30 30,000 59,580 89,580 1991 October 1 8.30$ 30,000 57,090 87,090 1992 October 1 8.40$ 54,600 54,600 1993 October 1 8.40$ 54,600 54,600 1994 October 1 8.40$ 54,600 54,600 1995 October 1 8.408 54,600 54,600 1996 October 1 8.40$ 54,600 54,600 1997 October 1 8.40$ 54,600 54,600 1998 October 1 8.40$ 54,600 54,600 1999 October 1 8.40$ 54,600 54,600 2000 October 1 8.40$ 54,600 54,600 2001 October 1 8.40 54,600 54,600 2002 October 1 8.40$ 54,600 54,600 2003 October 1 8.40$ 54,600 54,600 2004 October 1 8.40$ 650,000 54,600 704,600 Totals $785,000 $1,017,735 $1,802,735 62 VILLAGE OF TEQUESTA, FLORIDA Schedule of Investments - All Funds September 30, 1986 Enterprise Fund Bond Amortization Account United States Treasury Obligations Unamortized Interest Maturit Par Value Cost Discount Rate Date $160,000 $150,190 $9,407 7.625 2/15/07 Money Market Account Interes Amounts Rate Enterprise Fund Meter deposits accounts Retained earnings account Renewal and replacement account General Fund $5,000 Various 5,000 Various 5,000 Various 55,000 Various 63 VILLAGE OF TEQUESTA, FLORIDA Schedule of Investments - All Funds September 30, 1986 Debt Service Fund Enterprise Fund Meter deposits account Retained earnings account Reserve account Capital improvement account General Fund Certificates of Deposit nterest Maturity Maturity Amounts Rate Date $100,000 11.000 4/01/90 170,000 6.900 11/10/86 35,000 6.850 11/20/86 100,000 6.250 11/14/86 100,000 6.250 11/14/86 100,000 6.750 10/06/86 150,000 6.850 11/07/86 100,000 6.750 10/06/86 83,000 6.900 11/10/86 50,000 6.000 10/14/86 70,000 6.400 12/12/86 100,000 5.900 11/03/.86 218,000 7.000 07/14/87 65,000 6.400 12/12/86 2,000 10.750 04/20/87 64,000 6.850 02/15/07 150,000 6.400 12/12/86 150,000 6.750 10/03/86 100,000 5.900 10/03/86 100,000 5.900 10/17/86 64 VILLAGE OF TEQUESTA, FLORIDA Schedule of Insurance September 30, 1986 Policy Number Coverage Employees Statutory Life SR 40914 $10,000 - $20,000 Group Life Insurance 3-2215 1.5 times annual salary Group Hospitalization 24883 Various Comprehensive Automobile • Liability BAP468606 $500,000 Public Employees Blanket Bond H04135132 $100,000 Workmen's Compensation WC0075436-02 $100,000/$500,OOC Multi-peril Policy SMP541122 $1,000,000 Police Professional Liability 83LE-005589 $500,000/$1,OOO,C Police Official's and Employee's Liability 199-11-49 $1,000,000 Umbrella Liability XC34341 $1,000,000 Unlawful and Intentional Death Policy (Police Department Personnel, death resulting from an intentional and illegal act) DGS7252328 $50,000 65 VILLAGE OF TEQUESTA, FLORIDA General Revenues by Source (Unaudited) (1) Last Ten Fiscal Years Fiscal Year Ended September 30 Licenses and Taxes (3) Permits 1977 $ 534,853 $ 45,140 1978 582,544 44,982 1979 631,429 67,130 1980 736,789 60,366 1981 893,403 75,221 1982 991,734 74,325 1983 1,014,020 95,964 1984 1,129,107 113,982 1985 1,777,305 102,894 1986 1,729,412 104,014 (1) Includes General, Special Revenue and Debt Service Funds. (2) Includes intragovernmental services. (3) Includes Fire/Emergency Rescue Service. Ad valorem tax millage effective year 1985. Source: Village of Tequesta financial records. 66 Charges Lvr Lines and Intergoveritn~citial Services Cvrteiis Miscellaneous(~~ '!'vial $250,017 $ 0, 2UU ~ $ 7,311 $ 29,902 $ 819,303 2 1 G, 204 0, 2UU 5, 120 14, 650. 871, 780 202, 007 7, 172 12, 524 35, 556 956, 618 237, ~ G7 7, 079 1 1, 891 95, 767 1, 1U0, 154 24 9, 224 0, 1 70 18, 573' ~ ~ 124, 152 1, 368, 75 1 2UU, 9 1 G 0, 200 23, 574 98, 081 i, 396, 830 203,13U 9,963 32,455 99,601 1,534,633 335,099 O,ao7 ~ 90,783 107,163 1,743,741 340,93E 9,023 93,330 144,301 2,425,789 305, 952 1 1, OG9 92; 929 151, 690 Z, 425, 8 16 Fleoal Year Ended 5splerttb~r 30, 1886 Inlerpovernmentol (1[3.9X) Gltorpee for Servlcee (0.6X) lJceneee and parmlte (~1.3I:) flnee and forlelle (1.8X) TaKe~ (71.3X) G7 C111eoallaneous (6.3X) VII,T~AGE OC TEQUCSTA, FLORIpA General Government Expenditures by Function (Unaudited) (1) Last Ten Fiscal Years Fiscal Year Ended Seetember 30 General ~ Government Public Safet (2) .Transportation 1977 $199,850 $ 261,261 $296,482 1978 199, 720 278, 171 14 4, 676 1879 169,923 395,799 543,838 1980 175,079 970,194 296,792 ' 1981 197,191 534,729 125,801 1982 271,157 635,668 299,846 1983 279,56'1 703,124 356,401 1989 ~ 279,038 755,573 227,840 . 1985 296,537' 1,193,971 239,512 1986 373,195 1,239,66U 200,309 (1) Includes General, Special Revenue and petit Service C'unds. (2) Includes Fire/Emergency Contract with Palm 6eaci~ CounL-y year 1985. Source: Village of Tequesta.financial records. r :' 68 Physical I:nv i ronment Culture Eluman and Services Recreation Debt Service 'T'otal 269 $132 $ 3,781 $ 46,387 $ 13,070 $ 903,095 , 139,816 9,073 4 397 55,271 813 63 13,601 385 26 830,328 1,355,085 150,930 18 G 776 , 7, 281 , 71 , 986 , 101, 330 1, 309, 433 , 127,691 8,382 76,857 ' 90,535 88 1,161,136 791 548 1 159,155 927 177 11,069 8,024 82.,808 79,719 89,0 92,988 , , 1,697,244 , 183,591 2,154 ~ 128,247 47 91,299 603 89 1,662,742 109,153 2 206,776 290,507 10;907 5,.768 1.21,8 120,204 , 87,896 , 2,262,547 Fiscal Yeor Ended September 30, 1888 Culture and Recreation (5.3X) Physical [:nvlronmen! petit Service (3.9X, Traneportatlon (8.9X) Human Servlcea (0.3q) enment (16.6Y.) ................., ~.i4.87L) 69 VII,LAGC OF T~QU~STA, FLORIDA Property Tax Levies .and Collections (Unaudit-ed) (1) Last '1'en Fiscal Years Fiscal Year Total Current Tax Percent Ended Tax Levy Co11ecL-ions of Levy Se t~ ember 30 (1) (1) Collected 1977 $ 337,294 $ 336,650 ~ 99.8 1978 358,362 357,307 99.'7 1979 387, 591 306, 889 99.8 ., 1980 910,854 907,931 99.3 1981 534,655 531,676 ~ 99.9 1982 569,277 558,06fl~ 98.0 1983 550,573 540,876 98.2 ~ 1984 691,179 636,533 99.3 1985 1,038,027 1,037,003 99.9 1986 1,129,958 1,128,120 99.9_ Percent of Outstanding Delinquent Delinquent `Faxes to ?'axes Tax Levy $ 636 .2 1,055 .2 702 .2 2,923 .7 2,979 .6 11,209 2.0 9,697 1.8 4,646 .7 1, 02~! . 1 1, 33U . 1 (1) Includes discounts taken by property taxpayers. Source: Palm Beach County Tax Collect_-or's office. 7Q THIS PAGE INTENTIONALLY LEFT BLANK VILLAGE OF TEQUESTA, FLORIDA Taxable Value and Just Value of Taxable Property (Unaudited) Last Ten Fiscal Years Fiscal Year Ended September 30 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 Real Property Taxable Value Just Value $ 81,345,307 93,399,125 96,414,986 10$,755,676 146,062,451 200,770,160 199,394,093 206,001,538 219,001,538 233,658,151 $ 93,025,940 102,927,462 106,896,714 118,734,404 212,663,476 237,918,493 243,749,997 262,247,858 275,901,415 297,370,052 Source: Palm Beach County Property Appraiser's office. 71 Personal Property Total Ratio Taxable Just Taxable Just Taxable Value Value Value Value Value To Just Value $ 6,147,522 $ 8,550,730 $ 87,492,829 $101,576,670 86$ 6,398,719 9,807,003 99,797,844 112,734,465 89$ 7,218,482 10,918,206 103,633,468 117,814,920 88$ 8,036,976 11,774,601 116,792,652 130,509,005 89$ 8,576,046 12,847,602 154,638,497 225,511,078 69$ 9,434,287 9,856,038 210,204,447 247,774,531 85$ 10,410,095 10,943,311 209,804,188 254,693,308. 82$ 11,333,640 11,916,171 218,153,678 274,164,029 80$ 10,902,190 11,562,981 229,903,728 287,464,396 80$ 10,812,334 11,562,008 244,470,485 308,932,060 79$ 72 VILLAGE OF TEQUESTA, FLORIDA Property Tax Rates - All Overlapping Governments (Unaudited) (Per $1,000 of Assessed Value) Last Ten Fiscal Years Fiscal Year County Ended General School County September 30 Fund Count Board Librar 1977 4.1110 5.9808 9.7500 .3838 -1978 4.0090 6.0734 8.3000 .3717 1979 4.0540 6.3170 7.0200 .3620 1980 5.0430 7.3227 8.6300 .4008 1981 2.9839 4.9361 6.9192 .3707 1982 2.6762 4.1823 6.1331 .3261 1983 3.1506 4.2489 6.9329 .3526 1984 4.9200 4.1836 7.1720 .3525 1985 5.0867 4.5271 7.2280 .3428 1986 5.3126 4.6190 7.5950 .3951 (1) Two (2) year levy (2) Included in Village General Fund millage rate. At October 1, 1983, the Jupiter Fire Control District No. 1 became part of Palm Beach County through consolidation. Source: Palm Beach County Property Appraiser's office. 73 South Florida Jupiter Water Jupiter Fire Palm Beach Management Inlet District Junior District District No. 1 College Total .3650 .2290 1.8600 23.9320 .3970 .1980 1.6810 22.5016 .3970 .1950 1.7610 21.1071 .4220 .1850 1.7049 20.0649 .4020 .1641 1.7014 .5000(1) 24.1640 .3580 .1003 1.2422 .5000(1) 17.4104 .3840 .1866 1.1845 15.0728 .3990 .2290 1.4660 16.7790 .4270 .2290 (2) 17.2841 .4390 .2290 (2) 17.8526 .5130 .2115 (2) 18.6462 74 VILLAGE OF TEQUESTA, FLORIDA Ratio of Net General Bonded Debt To Assessed Value and Net Bonded Debt Per Capita (Unaudited) Last Ten Fiscal Years Fiscal Year Ended September 30 Population* Taxable Value 1977 3,812 $ 87,492,829 1978 3,814 99,797,844 1979 3,842 103,633,468 1980 3,685 116,792,652 1981 3,750 154,638,497 1982 3,828 210,204,447 1983 3,810 209,804,188 1984 3,870 218,153,678 1985 3,928 229,903,728 1986 4,077 244,470,485 * Source: Palm Beach County Planning Board, University of Florida Estimates and Federal Census 75 Debt Gross Service Net Bonded Monies Bonded Debt Available Debt Ratio of Net Bonded Debt to Assessed Value ___ Net Bonded Debt Per Capita $ 37,000 $ 15,046 $ 21,954 .03 5.76 25,000 14,110 10,890 .01 2.86 910,000 147,650 762,350 .79 126.47 895,000 147,650 747,350 .64 202.81 880,000 1U 2,751 777,249 .50 207.27 865,000 110,918 754,082 .36 196.99 845,000 110,508 734,492 .35 192.78 825,000 110,205 714,795 .33 184.70 805,000 109,769 695,231 .30 176.99 785,000 110,937 674,063 .27 165.33 76 VILLAGE OF TEQUESTA, FLORIDA Legal Debt Margin (Unaudited) September 30, 1985 The Village of Tequesta, Florida has no legal debt margin. 77 VILLAGE OF TEQUESTA, FLORIDA Computation of Direct and Overlapping Debt (Unaudited) September 30, 1986 Taxing Authority Village of Tequesta Palm Beach County Total Percentage Amount Applicable Applicable Net Debt To To Outstanding Tequesta Tequesta $ 674,063 160,590,000 100.00$ $ 674,063 .74~ 1,188,366 $1,862,429 78 VILLAGE OF TEQUESTA, FLORIDA Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures (Unaudited) Last Ten Fiscal Years Rat i o of Debt Total Service tc Fiscal Year Total General Total Ended Debt Expenditures General September 30 Principal Interest Service (1) Expenditur • 1977 $11,000 $ 2,040 $ 13,040 $ 903,095 1.4 1978 12,000 1,572 13,572 830,328 1.6 1979 25,000 1,063 26,063 1,355,085 1.9 1980 15,000 86,330 101,330 1,309,433 7.7 1981 15,000 75,535 90,535 1,161,136 7.7 1982 15,000 73,910 88,910 1,548,791 5.7 1983 20,000 72,988 92,988 1,697,244 5.5 1984 20,000 71,299 91,299 1,662,742 5.5 1985 20,000 69,235 89,235 2,109,153 4.2 1986 20,000 67,896 87,896 2,262,547 3.9 (1) Includes General, Special Revenue and Debt Service Funds. 79 VILLAGE OF TEQUESTA, FLORIDA Revenue Bond Coverage Water Bonds (Unaudited) Last Ten Fiscal Years fiscal Year Ended Gross eptember30 Revenues Net Revenue Available Operating for Debt Expenses Service Debt Service Requirements Cover- Principal Interest Total age 1977 $ 827,800 $ 227,821 $599,979 $ -0- $216,456 $216,456 2.77 1978 919,127 494,792 424,335 -0- 228,228 228,228 1.85 1979 995,592 493,811 501,781 -0- 264,263 264,263 1.89 1980 1,088,504 659,326 429,178 -0- 275,948 275,948 1.55 1981 1,207,659 752,255 455,404 -0- 274,759 274,759 1.65 1982 1,249,423 745,584 503,839 - -0- 275,090 275,090 1.83 1983 1,245,749 804,402 441,347 -0- 275,252 275,252 1.60 1984 1,349,576 982,883 366,693 -0- 276,344 276,344 1.33 1985 1,566,884 1,239,255 327,629 25,000 183,139 208,139 1.57 1986 1,620,609 1,310,250 310,359 65,000 134,421 199,421 1.56 80 VILLAGE OF TEQUESTA, FLORIDA Property Value, Construction and Bank Deposits Last Four Fiscal Years Commercial Residential Construction (1) Construction(1) •Number Number Fiscal of of Bank Real Personal Year Units Value Units Value Deposits (2) Property Property 1983 2 $ 687,754 39 $5,535,834 $270,278,000 $199,394,093 $10,410,0 1984 3 329,567 50 4,366,966 232,803,399 206,820,038 11,333,6 1985 9 4,692,681 33 2,106,652 224,302,732 219,001,538 10,902,1 1986 2 828,435 5 484,135 272,519,953 233,658,151 10,812,3: Source: (1) Village of Tequesta Planning and Zoning Department. (2) Tequesta Commercial Banks and Savings and Loan Associations. (3) Palm Beach County Property Appraiser's office. (4) Information only available for years provided. 81 VILLAGE OF TEQUESTA, FLORIDA Principal Taxpayers (Unaudited) September 30, 1986 Percentage 1986 of Assessed Assessed Taxpayer Type of Business Valuation Valuation Barnett Bank of Palm Beach County Banking $7,517,514 3.96$ Lighthouse Plaza Shopping Center 5,717,128 2.33$ Pride Plaza Supermarket 3,653,589 1.49$ Tequesta Shoppes, Ltd. Shopping Center 3,321,449 1.35$ Tequesta Plaza Shopping Center 2,467,244 1.00 Tequesta Fashion Mall Shopping Center 2,151,151. .87$ Tequesta Country Club Golf & Social Club 1,767,385 .72$ Village Apartments Apartment Rentals 1,251,748 .51$ Community Savings, F.A. Savings & Loan Riviera Beach Association 990,798 .40~ Shaw Properties Office Building 962,906 .39$ Source: Palm Beach County Property Appraiser's office. 82 VILLAGE OF TEQUESTA, FLORIDA Miscellaneous Statistics (Unaudited) September 30, 1986 Date of Incorporation: 1957 Forms of Government: Council-Manager Municipal Elections: Non-Partisan Area: 1.69 square miles Miles of Streets: Approximately 17 miles Fire Protection: Provided by - Palm Beach County Fire Insurance Rating - 6 Police Protection: Numbe r of stations - 1 Number of certified officers- - 17 Number of dispatchers - 4 Municipal Water Department: Number of customers - 3,885 Average daily consumption - 2.193 million gallons Miles of water mains - 43 miles Sanitary Sewage: Service provided by Loxahatchee River Environmental Control District Storm Sewers: Adequate coverage Garbage Collection: Service franchised to Nichol's Sanitation Frequency of service is bi-weekly Electric Service: Florida Power & Light Telephone Service: Southern Bell Telephone & Telegraph Company Building Permits Issued: 1,057 Recreation and Culture: Number of parks - 2, approximately 50 acres Number of libraries - 1, branch of Palm Beach County system .Number of volumes - 15,000-20,000 Municipal Employees: Full-time - 41 Part-time - 5 (seasonal) 83 VILLAGE OF TEQUESTA, FLORIDA Demographic Statistics Last Ten Fiscal Years (And as Available) Education Level in Years of Fiscal Population Per Capita Median Formal Unemployment Year (1) Income (2) Age (2) Schooling (2) Rate (3) 1977 3,812 $11,336 12.4 1978 3,814 9.5 1979 3,842 15,034 8.4 1980 3,685 49.7 13.7 7.2 1981 3,750 19,072 8.4 1982 3,828 10.9 1983 3,810 20,169 12.1 1984 3,870 9.1 1985 3,928 8.8 1986 4,077 7.3 Sources: (1) Palm Beach County Planning Board, University of Florida Estimates and Federal Census. (2) U.S. Department of Commerce, Bureau of the Census. Information only available for years provided. (3) Job Service of Florida. 84 1VOWLEN, HOLT, 1VIINER & ICISKER CERTIFIED PUBLIC ACCOUNTANTS 215 FIFTH STREET SUITE 200 POST OFFICE BOX 347 WEST PALM BEACH, FLORIDA 33402 TELEPHONE (305) 659-3060 EVERETT 8. NOWLEN, CPA, (1930-1884( EDWARD T. HOLT, CPA WILLAM B. MINER, CPA WLLLAM C. KISKER, JR., CPA (ReNrsd) ROBERT W. HENDRI%, JR., CPA RICHARD J. HUTCHINSON, CPA JANET R. BARICEVICH, CPA B.E. WEEKS, CPA CAROL A. CALLAHAM, CPA RICHARD D. HOOVER, JR., CPA MARIA D. OALDOS, CPA KATHLEEN A. BENTLEY, CPA DEBRA M. ALBERDI, CPA KIM HATCHER BEAUMONT, CPA ANTHONY B. GRAVETT, CPA GAIL HILL, CPA SCOTT D. DRUKER MARILYN ROBERTS, CPA MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANT FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANT ACCOUNTING FIRMS ASSOCIATED II BELLE GLADE OFFICE 333 S.E. 2nd STREET POST OFFICE BOX 338 BELLE GLADE, FLORIDA 33430 TELEPHONE (305( 996-5812 The Honorable Mayor Village of Tequesta Tequesta, Florida and Village Council RE: AUDITOR'S REPORT OF COMMENTS ON INTERNAL ACCOUNTING CONTROL AND ADMINISTRATIVE REQUIREMENTS Gentlemen: We have examined the general purpose financial statements of the Village of Tequesta for the year ended September 30, 1986, and have issued our report thereon dated December 19, 1986. Our examination was made in accordance with generally accepted auditing standards and the standards for financial and compliance audits contained in the U.S. General Accounting Office Standards for Audit of Governmental Organizations, Programs, Activities, and Functions. Solely to assist us in planning and performing our examination, we made a study and evaluation of the internal accounting controls. That study and evaluation was limited to a preliminary review of the system to obtain an understanding of the control environment and the flow of transactions through the accounting system. For the purpose of this report we have classified the significant internal accounting controls in the following categories: receipts cycle, non-payroll disbursements cycle, payroll disbursements cycle, external financial reporting, and fixed assets. Our study included all of the control categories listed above; however, since we did not intend to rely on the system of internal control to restrict the nature, timing and extent of auditing procedures to be performed, our study and evalua- tion of the internal accounting controls did not extend beyond the preliminary phase. 85 The management of the Village is responsible for establishing and maintaining a system of internal accounting control. In fulfilling this reponsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control proce- dures. The objectives of a system are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against, loss from unauthorized use or disposition, and that transac- tions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any system of internal accounting control, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the system to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. Our study and evaluation made for the limited purpose described in the second paragraph would not necessarily disclose all material weak- nesses in the system. Accordingly, we do not express an opinion on the system of internal accounting control of the Village taken as a whole or any of the categories of controls identified in the second paragraph of this letter. Our study and evaluation disclosed no condition that we believed to be a material weakness. However, the following suggestion is submitted to assist in improving procedures and control. 1. We noted that the balance of the customer deposit account in the water fund was not reconciled to the subsidiary records at year end. We recommend that you adopt a policy requiring the subsidiary records be reconciled to the general ledger on a monthly basis. 2. We noticed that the Village often prepares payroll checks several days prior to their distribution date and obtains one of the two required signatures at that time. In addition the checks are dated the day they will be distributed instead of the day they are prepared. While it appears that the check are being recorded in the proper time period, the built-in internal control accounting for the numerical sequencing of checks is weakened if not destroyed. In addition, in the event any of these checks were lost the fact that they already have one of the required signatures makes them very easy to cash. 86 We recommend that checks not be written or signed until they are to be distributed. Since checks are distributed every two weeks, arrangements should be made to have two approved signers available at a specif ied time on payroll day to sign the checks. In the event that it is not feasible to obtain two signatures on a regular basis, consideration should be given to allowing a single signature for payroll checks. 3. We noticed that although the budget process has been computerized, the amendments made during the year are not posted as they are approved. As a result the budgetary printout is not complete or accurate during the year. We suggest that all amendments to the budget be posted to the budgetary accounts as soon as they are approved. This report is intended solely for the use of management and the Council of the Village of Tequesta and should not be used for any other purposes. This restriction is not intended to limit the distribution of this report, which upon acceptance by the Council is a matter of public record. We commend the Village of the implementation of our comments from the prior year and appreciate the courtesy and cooperation shown us by the Village staff. Respectfully submitted, 87 NOWLEN, HOLT, MINER & KISKER CERTIFIED PUBLIC ACCOUNTANTS 215 FIFTH STREET SUITE 200 POST OFFICE BOX 347 WEST PALM BEACH, FLORIDA 33402 TELEPHONE (305) 859-3080 EVERETT B. NOWLEN, CPA, (1930-1984) B.E. WEEKS, CPA DEBRA M. ALBERDI, CPA MEMBER3 EDWARD T. HOLT, CPA CAROL A. CALLAHAM, CPA KIM HATCHER BEAUMONT, CPA AMERICAN INSTITUTE OF WILLIAM B. MINER, CPA RICHARD D. HOOVER, JR., CPA ANTHONY B. GRAVETT, CPA CERTIFIED PUBLIC ACCOUNTANTS WILLIAM C. KISKER, JR., CPA (Retlred) MARIA D. GALOOS, CPA GAIL HILL, CPA FLORIDA INSTITUTE OF ROBERT W. HENDRIX, JR.. CPA KATHLEEN A. BENTLEY, CPA SCOTT D. DRUKER CERTIFIED PUBLIC ACCOUNTANTS RICHARD J. HUTCHHJSON, CPA MARILYN ROBERTS, CPA ACCOUNTING FIRMS ASSOCIATED INC. JANET R. BARICEVICH, CPA Dece mber 19, 1986 BELLE GLADE OFFICE 333 S.E. 2nd STREET POST OFFICE BOX 333 BELLE GLADE, FLORIDA 33130 TELEPHONE (305) 998-5812 REPORT ON COMPL IANCE WITH LAWS AND REGULATIONS BASED ON AN EXAMINATION OF GENERAL PURPOSE FINANCIAL STATEMENTS P ERFORMED IN ACCORDANCE WITH THE STANDARDS FOR AUDIT ISSUED BY THE GAO Honorable Mayor and Village Council Village of Tequesta, Florida We have examined the general purpose financial statements of the Village of Tequesta, Florida, for the year ended September 30, 1986, and have issued our report thereon dated December 19, 1986. Our examination was made in accordance with generally accepted auditing standards and the standards for financial and compliance audits contained in the Standards for Audit of Governmental Organizations, Programs, Activities, and Functions, issued by the U.S. General Accounting Office, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The management of the Village is responsible for the Village's com- pliance with laws and regulations. In connection with our examina- tion referred to above, we selected and tested transactions and records to determine the Village's compliance with laws and regula- tions noncompliance with which could have a material effect on the general purpose financial statements of the Village. The results of our tests indicate that for the items tested, the Village of Tequesta, Florida complied with those provisions of laws and regulations noncompliance with which could have a material effect on the general purpose financial statements. Nothing came to our attention that caused us to believe that for the items not tested the Village of Tequesta, Florida was not in compliance with laws or regulations noncompliance with which could have a material effect on the Village's general purpose financial statements. 88 This report is intended solely for the use of management and the Village Council of the Village of Tequesta, Florida and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report, which upon acceptance by the Village Council of the Village of Tequesta, Florida, is a matter of public record. Respectfully submitted, ~~Q,.,. ,I~;P; V~1~,.,..,.~ a. jaw 89 VILLAGE OF TEQUESTA, FLORIDA The financial report for the Village of Tequesta, Florida, filed with the Department of Banking and Finance pursuant to Section 218.32, Florida Statutes, is in substantial agreement with the accompanying annual financial report. 90