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CAFR_FY Ending_09/30/1987Comprehensive Annual Village of Tequesta, Florida Fiscal Year Ended September 30, 1487 �r s Fiscal Year Ended September 30, 1487 COMPREHENSIVE ANNUAL FINANCIAL REPORT VILLAGE OF TEQUESTA, FLORIDA September 30, 1987 Prepared by the Finance Department VILLAGE OF TEQUESTA, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT September. 30, 1987 TABLE OF CONTENTS Page Number Introductory Section Title Page i Table of Contents 1 Letter of Transmittal 3 Certificate of Achievement for Excellence in Financial Reporting 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 27 Statement of Changes in Financial Position-- Proprietary Fund Type 28 Statement of Changes in Assets and Liabilities-- Agency Fund 29 Notes to Financial Statements 30 Supplemental Information General Fund Schedule of Revenues--Budget and Actual 50 Schedule of Departmental Expenditures-- Budget and Actual 52 Proprietary Fund (Enterprise Fund) Schedule of Operating Expenses--Budget and Actual 60 Comparative Summary of Operations--Fiscal Years Ended September 30, 1987 and 1986 61 Schedule of Restricted Accounts Under Revenue Bond Ordinance 62 1 VILLAGE OF TEQUESTA, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT September 30, 1987 TABLE OF CONTENTS (Continued) Page Number Amortization Schedule--Water Refunding Revenue Bonds - Series 1985 64 General Fixed Asset Account Group Schedule of General Fixed Assets By Source 65 Schedule of General Fixed. Assets By Function and Activity 66 Schedule of Changes in General Fixed Assets By Function and Activity 67 General Long-Term Debt Amortization Schedule--Improvement Revenue Bonds - Series 1979 68 All Funds Schedule of Investments 69 Schedule of Insurance 71 Statistical Section General Revenues by Source 72 General Government Expenditures by Function 74 Property Tax Levies and Collections 76 Taxable Value and Just Value of Taxable Property 77 Property Tax Rates--All Overlapping Governments 79 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita 81 Legal Debt Margin 83 Computation of Direct and Overlapping Debt 84 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures 85 Revenue Bond Coverage--Water Bonds 86 Property Value, Construction and Bank Deposits 87 Principal Taxpayers 88 Miscellaneous Statistics 89 Demographic Statistics 90 Auditor's Report on comments on Internal Accounting Controls and Administrative Requirements 91 Report on Compliance with Laws and Regulations 94 Statutory Report 96 2 VILLAGE OF TEQUESTA Post Office Box 3273 • 357 Tequesta Drive Teyuesta, Florida 33469-0273 • (305) 746-7457 February 2, 1988 The eonorable Mayor and Village Council Village of Tequesta Tequesta, Florida Gentlemen: Submitted herewith is the Comprehensive Annual Financial Report of the Village of Tequesta,, Florida, for -the fiscal year ended September 30, 1987. 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, Bolt & 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 The Honorable Mayor and Village Council Village of Tequesta 3. Statistical Section, which contains data of the Village relating to social, political and economic characteristics, 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. PRESENTATION AND STANDARDS The accounting records of the general governmental operations are maintained on a modified accrual basis in that revenue is recog- nized when both measurable and available; whereas, expenditures are recorded when incurred. The full accrual basis is used in the Enter- prise Fund. The Village's financial statements have been designed to conform substantially to the high standards of financial reporting set forth by the National Council on Governmental Accounting 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 con- trols. Internal accounting controls are designed to provide reasona- ble, but not absolute, assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or 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 frame- work. 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 over- run of departmental balances are not released until additional appro- priations are made available. Open encumbrances are reported as reservations of fund balance at September 30, 1987. 4 The Honorable Mayor and Village Council 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 State- ments 3 and 7, for financial reporting purposes, the Village's finan- cial statements include all funds, account groups, departments, agen- cies, 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. 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 a comparison of interest rates. The average yield on maturing investments during the year was 6.7$. The average yield on money market accounts was 5.2$. 5 The Honorable Mayor and Village Council Village of Tequesta GENERAL FUND The General Fund of the Village encompasses the Village's gene- ral 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 $2,595,215 in 1986-1987. The detail is summarized below: REVENUES Source Taxes Licenses and permits Intergovernmental revenues Charges for services Fines and forfeitures Miscellaneous and intra- governmental revenues Total Percentage 1985-86 1986-87 of Total Amount Amount Revenues $1,729,412 $1,881,171 72.5$ 104,014 123,303 4.8$ 370, 315 421, 385 16.2$ 11,869 8,880 .38' 42, 929 51 , 126 2.0$ 137,158 109,350 4.2$ $2,395,697 $2,595,215 100.0$ --~ 6 The Honorable Mayor and Village Council Village of Tequesta EXPENDITURES Expenditures for the General Fund totaled $2,429,553 in 1986-87. The detail is summarized below: Purpose Current 1985-86 Percentage 1986-87 of 1986-87 Amount Amount Total General government Public safety Physical environment Transportation Human services Culture and recreation Total $ 357, 272 $ 401, 854 16.5$ 1,234,668 240,507 200,309 1, 328, 602 278, 752 306,292 5, 768 2, 907 120,204 111,146 $2,158,728 $2,429,553 54.7$ 11.5$ 12.6 .1$ 4.6$ -~ 100.0$ Revenue and Expenditures Revenues reported this fiscal year were $199,518, or 8.3$ more than the revenues reported for the previous fiscal year, resulting primarily from an increase to the Ad Valorem Property Tax millage rate in the amount of .2259 mills and a moderate increase in Intergovernmental Revenues. 7 The Honorable Mayor and Village Council Village of Tequesta Expenditures reported this fiscal year were $270,825, or 12.5$ more than expenditures reported for the previous fiscal year. The increased expenditures were attributed to: 1. Employee personal service expenses which included a Cost of Living Adjustment for all employees of 3$, annual merit increase for employees averaging 3$, increased health insurance premiums of 12.5$, and increased FICA contribu- tions of 5~. 2. Operation and Maintenance expenses experienced increases for general insurance and workers compensation insurance of 15$. Physical Environment expenses were increased 16$ resulting from an increase to the solid waste disposal contract for Village refuse service, and the Village contract with Palm Beach County for Fire-Rescue Service was increased 13$. 3. Capital Outlay Expenses reflected a substantial increase for Transportation Improvements consisting of road and drainage improvements and beautification projects. Fund Balance The General Fund has a fund balance of $660,857 at September 30, 1987. The balance is summarized as follows: Fund balance, September 30, 1986 $630,015 Excess of revenues over expenditures 165,662 Operating transfers in 180 Operating transfers out 135,000 Fund balance, September 30, 1987. $660,857 SPECIAL REVENUE FUND The Special Revenue Fund is used to account for revenue real- ized from specific sources which is legally required to be accounted for separately from other funds. The Federal Revenue Sharing Fund was the only Special Revenue Fund maintained by the Village. The Special Revenue Fund was closed this year as a result of the discon- tinuation of the Program by the Federal government in 1986. CAPITAL PROJECTS FUND The Capital Projects Fund is used to account for financial resources to be used for the construction of major capital facilities other than those accounted in the Enterprise Fund. 8 The Honorable Mayor and Village Council Village of Tequesta AGENCY FUND The Agency Fund is used to account for investments held by the Village as trustee for employees participating in the Deferred Compensation Plan. 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, inte- rest 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 drain- age 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. On September 30, 1987, $760,000 of the bonds were outstanding. ENTERPRISE FUND Enterprise Fund income and expense data of the Village Water System for 1987 is shown in the following schedule: Operating revenues $1,633,794 Operating expenses 1,434,538 Operating income 199,256 Non-operating revenues (expenses) (6,179) Operating transfer (out) (50,000) Net income $ 143,077 9 The Honorable Mayor and Village Council Village of Tequesta 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, 1987, $1,365,000 of the bonds remained outstanding. GENERAL FIXED ASSETS General Fixed Assets are those fixed assets which are not ac- counted 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 Balance October 1, September 30, 1986 Additions Deletions 1987 Land $ 35,000 $ 14,728 $ $ 49,728 Buildings 214,832 214,832 Improvements 126,446 44,176 170,622 Equipment 424,059 66,153 22,636 467,576 Total $800,337 $125,057 $22,636 $902,758 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: 10 The Honorable Mayor and Village Council Village of Tequesta 1. Greater reliance on technology and improved data processing capability to increase internal efficiency and reduce the need for additional personnel. 2. Continued upgrading of the present water treatment system with emphasis on potential well field expension. 3. Pursuant to the direction of the "Local.-Government Compre- hensive Planning and Larid Regulation Act of the State of Florida", the Village intends to review the potential for implementation of impact fees for new development where feasible, to offset the cost of rendering services to new developments within the corporate limits of the Village. 4. In accordance with the intended direction of--the "Village Comprehensive Plan", the Village intends to pursue all feasible areas for annexation in order to provide for continuity of service delivery and to provide for fairness in the distribution of costs associated with the delivery of public services. If the Village maintains the level of fiscal discipline and control exercised over the past several years, its financial condi- tion 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 Conformance in Financial Reporting to the Village of Tequesta for its comprehensive annual financial report for the fiscal year ended September 30, 1986. In order to be awarded a Certificate of Achievement, a govern- mental unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to pro- gram standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to the Certificate of Achievement Program requirements, and we are submit- ting it to GFOA to determine its eligibility for another certifi- cate. 11 The Honorable Mayor and Village council The Village of Tequesta ACKNOWLEDGMENTS The preparation of this report on a timely basis could not have been accomplished without the cooperation and dedicated services of the entire staff of the Village and the professional guidance and assistance provided by the independent auditors retained by the Village. 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, ` /'s~-~s-rs~J Thomas G. Bradford, Village Manager 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, 1986 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. President ~~~ `~~~~ Executive Director 13 VILLAGE OF TEQUESTA ORGANIZATION CHART a VILLAGE OF TEQUESTA, FLORIDA Council - Manager Form of Government VILLAGE COUNCIL - 1986-1987 Carlton D. Stoddard Edward C. Howell Earl L. Collings Ron Mackail Edwin J. Nelson VILLAGE OFFICIALS Mayor Vice-Mayor Councilmember Councilmember Councilmember Thomas G. Bradford Manager John C. Randolph Attorney (Johnston, Sasser & Randolph) Bill C. Kascavelis Finance Director/Clerk Franklin D. Flannery Police Chief Scott D. Ladd Director of Public Works & Recreation Thomas C. Hall Water System Manager INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS Nowlen, Holt & Miner, P.A. 15 NOWLEN, HOLT & MINER, P.A. CERTIFIED PUBLIC ACCOUNTANTS 21 S FIFTH STREET SUITE 200 POST OFFICE BOX 347 WEST PALM BEACH, FLORIDA 33402 TELEPHONE (305) 859.3080 EVERETT B. NOWLEN. CPA (1930.19841 EDWARD T. MOLT, CPA WILLIAM B. MNER, CPA ROBERT W. HENDFiIX, JR., CPA JANET R. BARICEVICN, CPA B.E. WEEKS, CPA MARILYN ROBERTS. CPA KATHLEEN A. BENTLEY, CPA R. GREGORY SMRH, CPA KMA HATCHER BEAUMONT, CPA MARTHA ANN HERB, CPA GAIL H. MOYE. CPA ROBERT W. HELMREK:H, CPA MEMBER$ AMERK;AN INSTRUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE 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. 2rW STREET POST OFFICE BOX 33B BELLE GLADE. FLORIDA 33x30 TELEPHONE (3051998-5812 We have examined the general purpose financial statements of the Village of Tequesta, Florida, as of and for the year ended Septem- ber 30, 1987, as set forth in the table of contents. 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. In our opinion, the general purpose financial statements present fairly the financial position of the Village of Tequesta, Florida at September 30, 1987, 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. ~rl,~.oa.~ ,1~.~- ~. nru~,,., P. ~. February 2, 1988 17 GENERAL PURPOSE FINANCIAL STATEMENTS VILLAGE OF TEQUESTA, FLORIDA Combined Balance Sheet - All Fund Types and Account Groups (Continued) September 30, 1987 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 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 Debt Capital General Service Projects -_._._ $197, 1 10 $ 15, 779 $ 59, 817 555,000 100,000 100,000 280 4, 147 9,582 2, 132 735 2, 773 136 $768,986 $178,369 $100,136 18 Proprietary Fiduciary Fund Type Fund Type Enterprise Agency $ 263,957 $ 1,445,000 46,295 151,289 12, 122 17,055 77,694 1,004,486 7, 066 4,515,690 $7,494,359 $46,295 Account Grou s General Genera Fixed Long-Term Assets Debt 902,758 Conte ~co 118,377 664,131 c~o~ cno See notes to financial statements. 19 Totals (Memorandum Only) $ 476,846 59, 817 2,246,295 151,569 19, 178 9,582 2, 132 17,790 77,694 1,004,486 7,066 5,418,448 1 18, 377 664,131 $10,273,411 VILLAGE OF TEQUESTA, FLORIDA Combined Balance Sheet - All Fund Types and Account Groups (Continued) September 30, 1987 • Governmental Fund Types Debt Capital General Service Projects Liabilities and fund equity Liabilities Accounts payable Accrued liabilities Matured interest payable Matured principal payable Payable from restricted assets Cash overdraft Deposits Due to other funds Deferred revenue Deferred compensation payable Improvement revenue bonds payable Water refunding revenue bonds payable Unamortized debt discount Other liabilities $ 26, 157 $ 54,306 175 $ 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 Ondesignated Total fund equity Total liabilities and fund equity 27,666 1, 890 57, 927 108,129 59,992 735 88,755 9,575 152 15, 170 29, 522 635,225 100,136 660,857 118,377 100,136 $768,986 $178,369 $100,136 20 Proprietary Fund Type Enterprise Fiduciary Fund Type Agency $ 9,876 $ $ 8,499 322,899 127,625 9,582 46,295 1,365,000 (35,352) 1,836 1,809,965 1,965,180 561 , 028 3, 1 58, 1 86 46,295 Account Groups General General Totals Fixed Long-Term (Memorandum Assets Debt Only) 902,758 22, 508 760,000 782,508 $ 36,208 85, 313 1 , 890 57, 927 322,899 127,625 9,582 27,666 46,295 760,000 1,365,000 (35,352) 1,836 2,806,889 902, 758 1,965,180 561,028 3, 158, 186 735 88,755 9,575 152 15, 1 70 29, 622 735,361 5,684,394 $7,494,359 902,758 $46,295 $902,758 $782,508 See notes to financial statements. 21 7,466,522 $10,273,411 VILLAGE OF TEQUESTA, FLORIDA Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - All Governmental Fund Types ^ur the Fiscal Year Ended SPOten.ber 30, 1987 General Revenues Taxes $1,881,171 Licenses and permits 123,303 Intergovernmental revenues 421,385 Charges for services 8.880 Fines and forfeits 51,126 Miscellaneous revenues 41,350 Inteagovernmental services 68,000 Total revenues 2,595,215 Expenditures Current General government 401,854 Public safety 1,328,602 Physical environment 278.752 Transportation 306,292 Human services 2,907 Culture/recreation 111,146 Debt service Principal retirement Interest and fiscal charges Total expenditures 2,429,553 Excess of revenues over (under) expenditures 165,662 Other financing sources (uses) Operating transfers in Operating transfers out (135,000) Total other financing sources (uses) (135,000) Excess of revenues and other sources over (under) expenditures and other uses 30,662 Fund balances, October 1, 1986 630,015 Residual equity transfer 180 Fund balances, September 30, 1987 $ 660,857 22 Governmental Fund Types Special Debt Capital Revenue Service Projects $ $ $ 13,654 1 ,654 25,000 66,215 91,215 (77,561) 85,000 ,~~ 7,439 180 110,937 (180) $ -0- $118,376 136 136 136 100,000 ~~ 100, 136 $100,136 Totals (Memorandum Onlv) $1,881,171 123,303 421, 385 8, 880 51, 126 55, 140 68,000 2,609,005 401 , 854 1, 328, 602 278,752 306, 292 2,907 111, 146 25,000 66,215 2,520,768 88,237 185, 000 (135,000) 50,OOb 138,237 741, 132 $ 879,369 See note s. 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 T pes For the Fiscal Year Ended September 30, 1987 General Fund ariance - Favorable Budget Actual (Unfavorable) Revenues Taxes $1, 860E 288 $1, 881, 171 $ 20, 883 Licenses and permits 119,308 123,303 3,995 Intergovernmental revenues 434,627 421,385 (13,242) Charges for services 7,850 8,880 1,030 Fines and forfeits 45,300 51,126 5,826 Miscellaneous revenues 26,100 41,350 15,250 Intragovernmental services 68,600 68,000 (600) Total revenues 2,562,073 2,595,215 3 Expenditures Current General government 411,280 401,854 9,426 Public safetX 1,349,334 1,328,602 20,732 Physical environment 280,000 278,752 1,248 Transportation 336,930 306,292 30-,638 Auman services 4, 730 2, 907 1, 823 Culture/recreation 136,890 111,146 25,744 Debt service Principal retirement Interest and fiscal changes Total expenditures 2,519,164 2,429,553 89,611 Excess of revenues over (under) expenditures 42,909 165,662 122,753 Other financing sources (uses) Operating transfers in Operating transfers out (135,000) (135,000) -_-___ Total other financing sources (uses) (135,000) (135,000) _ Excess of revenues and other sources over (under) expenditures and other uses $ (92,091) 30,662 $122,753 Fund balances, October 1, 1986 630,015 Residual equity transfer 180 Fund balances, September 30, 1987 $ 660,857 24 Special Revenue Fund variance - Favorable Budget Actual (Unfavorable) $ $ $ Debt Service Fund variance - Favorable Budget Actual (Unfavorable) $ $ $ 6,230 13,654 7,424 6,230 13,654 7,424 25,000 25,000 66,230 66,215 15 91,230 91,215 15 (85,000) (77,561) 7,439 85,000 85,000 85,000 85,000 $ 7, 439 $739 180 110,937 (180) I' ~ $1 1~8 ,.. 3~7 6 (Continued) 25 Capital Projects Fund Totals (Memorandum Only) ariance - - ariance - Favorable Favorable _Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ $ 136 136 $ $1,860,288 $1,881,171 $ 20,883 119,308 123,303 3,995 434, 627 421, 385 (13, 242 ) 7, 850 8, 880- 1, 030 45, 300 51 , 126 5, 826 136 32, 330 55, 140 22, 810 68,600 68,000 (600) 136 2,568,303 2,609,005 40,702 411,280 401,854 9,426 1, 349, 334 1, 328, 602 20, 732 280,000 278,752 1,248 336,930 306,292 30,638 4, 730 2, 907 1, 823 136,890 111,146 25,744 25,000 25,000 66,230 _ 66,215 15 2,610,394 2,520,768 89,626 136 100,000 100,000 100,000 100,000 $100, 000000 100, 136 $100,136 136 (42,091) 185, 000 (135,000) 50,000 $ ~ $ 7,909 88,237 130,328 185,000 (135,000) 50,000 138,237 $130,328 741, 132 $ 879,369 See notes to financial statements. 26 VILLAGE OF TEQUESTA, FLORIDA Statement of Revenues, Expenses, and Changes in Retained Earnings - Proprietary Fund Type For the Fiscal~Year Ended September 30, 1987 Operating revenues Charges for services Operating expenses Purchased water Personal services Contractual services Supplies Heat, light and power Repairs and maintenance Depreciation Bad debts Total operating expenses Operating income Nonoperating revenues (expenses) Interest revenue Interest expense and fiscal charges Total nonoperating revenues (expenses) Income before operating expenses Operating transfers (out) Net income Retained earnings, October 1, 1986, Retained earnings, September 30, 1987 See notes to financial statements. Proprietary Fund Type Enterprise $1,633,794 466,068 198,672 151 , 357 28, 060 79, 121 140, 223 368, 660 2,377 1,434,538 199,256 126, 740 (132,919) (6,179) 193,077 (50,000) 143,077 3,576,137 $3,719,214 27 VILLAGE OF TEQUESTA, FLORIDA Statement of Changes in Financial Position - Proprietary Fund Type For the Fiscal Year Ended September 30, 1987 Sources of working capital Operations Net income Items not requiring working capital Depreciation Amortization of debt discount and issue costs Working capital provided by operations Contributions Increase in current liabilities payable from restricted assets Decrease in restricted assets Total sources of working capital Uses of working capital Acquisition of property, plant and equipment Decrease in other liabilities Decrease in long-term debt Total uses of working capital Net decrease in working capital Elements of net increase (decrease) in working capital Cash Investments Accounts receivable Accrued interest receivable Inventories Accounts payable and accrued liabilities Due to other funds Net increase in working capital See notes to financial statements. Proprietary Fund Type Enterprise $143,077 368,660 4,663 516,400 297,244 5,697 427,174 730,115 249,467 5, 432 70,000 324,899 $921,616 $195,391 716,500 7,997 1 64 7,624 (137) (5,923) $921,616 28 VILLAGE OF 'rEQUESTA, FLORIDA Statement of Changes in Assets and Liabilities - Agency Fund For Fiscal Year Ended September 31, 1987 Deferred Balance Compensation October 1, Fund 1986 Additions Deductions Assets Balance September 30, 1987 Investments $2,871 $43,424 $46,295 Liabilities Deferred compensation payable $2,871 $43,424 $46,295 See notes to financial statements. 29 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1987 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Consideration of Definition of the Reportin4 Entity 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, 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: 30 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September ~ 30, 1987 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Governmental Fund Types 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. 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. Capital Projects Fund The Capital Projects Fund is used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those to be financed by the Proprietary 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 far specified purposes. The Special Revenue Fund used by the Village was the Federal Revenue Sharing Fund which accounted for revenue received from the Federal government under the Federal Revenue Sharing Program. The program was discontinued as of September 30, 1986. During fiscal year ended September 30, 1987 funds were transferred to the General Fund for public safety expenditures. A residual equity transfer was made to the General Fund to close the remaining balance of the discontinued fund. 31 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1987 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 the Water Fund which accounts for the provision of water services to the residents of the Village and some residents of the County. All activities necessary to provide such services are accounted for in this fund including, but not limited to, administration, operations, maintenance, financing and related debt service and billing and collection. Fiduciary Fund Type Agency Fund The Agency Fund is used to account for assets held by the Village in a trustee capacity or as an agent for individuals. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results and operations. Fixed Assets and Long-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 f and 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. 32 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1987 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Fixed Assets and Long-Term Liabilities (Continued) 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. 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. 33 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30,-1987 NOTE 1 - SUMIrIARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Fixed Assets and Long-Term Liabilities (Continued) 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 Improvements Equipment 40 years 20 - 25 years 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. 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. 34 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1987 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Interfund transactions (Continued) 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, 1987 and 1986 were $152 and $6,865, respectively. Revenue Recognition Ad Valorem Taxes Ad valorem taxes are assessed as of January 1 and billed the following October. They are due and payable on November 1 of each year or as soon thereafter as the assessment roll is certified and delivered to the Tax Collector. These taxes are collected by the County and remitted to the Village. Revenue is recognized at the time monies are received from the County. AlI unpaid taxes become delinquent on April 1 following the year in which they are assessed. Discounts are allowed 'far early payment at the rate of 4$ 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. 35 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1987 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Revenue Recognition (Continued) Ad Valorem Taxes (Continued) 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 material uncollected property taxes at year end. Budgets and Budgetary Accounting Formal budgetary integration is employed as a management control device during the year for the General Fund, Debt Service Fund and Capital Projects Fund. The Finance Department also maintains control over expenditures of the debt service fund through the use of bond indenture provisions. Budgets for the General, Debt Service and Capital Projects Funds are adopted on a basis consistent with generally accepted accounting principles. For budgeting purposes, current year encumbrances are not treated as expenditures. The Village follows these procedures in establishing the budgetary data reflected in the financial statements: 1. Prior to September 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 dr 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. 36 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1987 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Budgets and Budgetary Accounting (Continued) 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, Debt Service Fund and Capital Projects Fund budgets reflected 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 1985. 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. 37 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1987 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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. NOTL~ 2 - CASH AND INVESTMENTS Village funds are invested in accordance with Florida Statutes with qualified public depositories and in United States Treasury Obliga- tions. Deposits The Village's deposits at year end are entirely covered by Federal depository insurance or by collateral held by the Village's custodial banks in the Village's name. Deposits are carried at cost plus accrued interest. As of September 30, 1987 the carrying amount of total cash deposits was $213,764. Investments As of September 30, 1987 the Village has $2,968,864 invested in certificates of deposit and money market accounts with qualified public depositories. These investments are entirely covered by Federal depository insurance or by collateral held by the depository in the Village's name. The Village is obligated by its Water Refunding Revenue Bond issue, Series 1985, to purchase U.S. Treasury Obligations. In accordance with the securities contract U.S. Treasury Obligations of $250,000 are held by a qualified public depository. The bonds are recorded net of unamortized discount of $14,378, which approximates market value . The Village's Deferred Compensation plan has investments of $46,295 as of September 30, 1987. The ICMA Retirement Corporation invests funds withheld from employees and is sponsored by the Government Finance Officers Associations. The funds a•re invested in a Guaran- teed Fund which provides contracts guaranteeing both protection of principal and a rate of return for a specific period of time and protection from default by underwriters. 38 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1987 NOTE 2 - CASH AND INVESTMENTS (Continued) Investments (Continued) As of September 30, 1987 the carrying amount of total investments was $3, 250, 781 . NOTE 3 - ACCOUNTS RECEIVABLE - ENTERPRISE FUND Accounts receivable of $152,300 are stated net of a $2,000 allowance for doubtful accounts and consist of billed revenues totaling $129,443 and unbilled revenues totaling $22,857. NOTE 4 - COMPONENTS OF FIXED ASSETS A summary of changes in general fixed assets follows: Balance Balance October 1, September 30, 1986 Additions Deletions 1987 Land $ 35, 000 $ 14, 728 $ $ 49, 728 Buildings 214, 832 214, 832 Equipment 424, 059 66, 153 22, 636 467, 576 Improvements other than buildings 126,446 44,176 17+0622 Total $800,337 $125,057 $22,636 $902,758 The components of fixed assets at September 30, 1987 are summarized as follows: General Enterprise Fixed Assets Fund Account Group Total Land $ 92, 042 $ 49, 728 $ 141, 770 Buildings 388,592 214,832 603,424 Improvements other than buildings 6,159,983 170,622 6,330,605 Machinery and equipment 236,600 467,576 704,176 6, 8 , ~, 7~$ ~~ Accumulated depreciation 2,361,527 2,361,527 Total $4,515,690 $902,758 $5,418,448 39 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1987 N0TE_5 - DEFINED BENEFIT PENSION PLAN All Village full-time employees participate in the noncontributory Florida Retirement System, a multiple-employer public employee retirement system. The payroll for employees covered by the System for the year ended September 30, 1987 was $971, 843. All Village full-time employees are eligible to participate in the System as authorized by Chapter 121 of the Florida Statutes. The Florida Retirement System has four classes of membership. Village employees belong to two of the four classes, the regular class consisting of administrative, operations and clerical employees, and the special risk class consisting of law enforcement officers. Employees who retire at or after age 62 with 10 years of credited service are entitled to a retirement benefit, payable monthly-for life, equal to 1.60 to 1.68$ (regular class) and 2.0 to 3.0~ (special risk class) of their average final compensation for each year of credited service, depending on the years served. Average final compensation is the employee's average of the five highest years of credited service. Benefits fully vest on reaching 10 years years of service. Vested employees may retire at or after age 55 and receive reduced retirement benefits. The System also provices death and disability benefits. Benefits are established by State statute. Total pension costs for the year ended September 30, 1987 were $130,157 (General Fund $110,994, Enterprise Fund $19,163). The Village contribution rates as of September 30, 1987 were based on 13.14$ of covered payrol for regular class and 15.11$ for special risk class. The "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step-rate benefits, estimated to be payable in the future as a result of employee service to date. The measure, which is the actuarial present value of credited projected benefits, is intended to help users assess the System's funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among PERS and employers. The System does not make separate measure- ments of assets and pension benefit obligation for individual employers. The pension benefit obligation at July 1, 1987 for the System as a whole, determined through an actuarial valuation per- formed as of that date, was $20.8 million. The System's net assets available for benefits on that date (valued at market) were $13.7 million, leaving an unfunded pension benefit obligation of $7.1 million. 40 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1987 NOTE 5 - DEFINED BENEFIT PENSION PLAN (Continued) Ten-year historical trend information showing the System's progress in accumulating sufficient assets to pay benefits when due is pre- sented in the System's June 30, 1987 comprehensive annual financial report. NOTE 6 - DEFERRED COMPENSATION PLAN The Village-offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all Village employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. AlI a.•nounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the Village (without being restricted to the provisions of bene- fits under the plan), subject only to the claims of the Village's general creditors. Participants' rights under the plan are equal to those of general creditors of the Village in an amount equal to the fair market value of the deferred account for each participant. It is the opinion of the Village that it has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The Village believes that is unlikely that it will use the assets to satisfy the claims of general creditors in the future. NOTE 7 - 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, 1987, the total liability for compen- sated absences was $52,552. The. current liability in the General Fund was $27,008. 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, 1987, the long-term amount was $22,508. The liability recorded by the Enterprise Fund was $3,036. 41 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1987 NC 'E 8 - LEASE COMMITMENTS '? a Village presently has no material lease commitments. In addi- ~~on, the Village has no commitments under lease purchase or similar ,..ontractual arrangements. 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 - PROJECTS ENTERED INTO WITH OTHER GOVERNMENTAL UNITS On August 15, 1984 the Village entered between Palm Beach County and various vices to be rendered by the Palm Beach to said municipalities for a fee. For 1987 fire protection and emergency $376,439. into an interlocal agreement other municipalities for ser- County Fire Rescue Department the year ended September 30, medical service expense was NOTE 11 - 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. 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. 42 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1987 NOTE 11 - LONG-TERM DEBT (Continued) Water Fund: (Continued) 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 estimated 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 Purpose Revenue Account To collect the entire gross revenues derived from the system, except invest- ment earnings. Operation and To pay fully accrued operating expenses. Maintenance Account Sinking Account To accumulate sufficient funds to meet annual debt service requirements through 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. 43 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1987 NOTE 11 - LONG-TERM DEBT (Continued) Water Fund: (Continued) The annual requirements to amortize the debt are as follows: Fiscal Year Ending September 30 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 Principal Interest $ 3 5, 000 80,000 80,000 90, 000 95, 000 105,000 185,000 275,000 300,000 120,000 $ 56, 609 109,505 103,805 97, 667 90, 749 83, 005 74, 199 55, 143 30,592 5,340 $1,365,000 $ 706,614 Total $ 91, 609 189,505 183, 805 187, 667 185, 749 188, 005 259,199 330, 143 330,592 125,340 $2,071,614 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 8.508. At September 30, 1987, $760,000 of this issue, which consists of term and serial bonds, were outstanding. The guaranteed entitlement portion of state revenue sharing trust funds, public service utilities taxes, fran- chise fees and occupational license taxes have been pledged. The bonds will be repaid through the Debt Service Fund. 44 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1987 NOTE 11 - LONG-TERM DEBT (Continued) General Long-Term Debt: (Continued) Annual requirements to amortize this debt are as follows: Co upo n Rate Principal Interest 1 988 October 1 8.40$ $ 25, 000 $ 63, 755 1989 October 1 8.30$ 25,000 61,655 1990 October 1 8.30$ 30, 000 59, 580 1991 October 1 8.30 30,000 57,090 1992 October 1 8.40$ 54,600 1993 October 1 8.40$ 54,600 1994 October 1 8.40$ 54,600 1995 October 1 8.40$ 54,600 1996 October 1 8.40$ 54, 600 1997 October 1 8.40$ 54,600 1998 October 1 8.40$ 54,600 1999 October 1 8.40$ 54,600 2000 October 1 8.408 54, 600 2001 October 1 8.40$ 54,600 2002 October 1 8.40$ 54,600 2003 October 1 8.40$ 54,600 2004 October 1 8.40$ 650,000 __ 54,600 Totals $760,000 $ 951,880 Total Payments $ 88, 755 86, 655 89, 580 87, 090 54, 600 54, 600 54, 600 54, 600 54, 600 54, 600 54, 600 54, 600 54, 600 54, 600 54, 600 54, 600 704,600 $1,711,880 Monie s 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 i 993 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 45 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1987 NOTE 11 - LONG-TERM DEBT (Continued) General Long-Term Debt: (Continued) The annual requirements to amortize all outstanding debt including interest payments of $1,658,494 as of September 30, 1987 are as follows: Fiscal Year Ending September 30 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Various Compensated Improvement Water Absences Revenue Revenue Total $ 88, 755 86, 655 89, 580 87, 090 54, 600 54, 600 54, 600 54, 600 54, 600 54, 600 54, 600 54, 600 54, 600 54, 600 54, 600 54, 600 704, 600 $ 184,311 189, 505 183, 805 187,667 185,749 188, 005 259, 199 330,143 330, 592 125, 340 $ 273, 066 276, 160 273,385 274, 757 240,349 242, 605 31 3, 799 384, 743 385, 192 17 9, 940 54, 600 54, 600 54, 600 54, 600 54, 600 54,600 704, 600 22,508 22,508 $22,508 $1,711,880 $2,164,316 $3,898,704 Annual maturities of long-term compensated absences cannot be reason- ably determined. 46 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1987 NOTE 11 - LONG-TERM DEBT (Continued) Chan es in Lon -Term Debt: Transactions for the Village for the year ended Septem er 30, 1987 are summarized as follows: Long-term debt at October 1, 1986 Less Reduction in compensated absences Less: Bonds retired Long-term debt at September 30, 1987 Interest Expense Improvement Water Compensated Revenue Revenue Absences Bonds Bonds Total $35,770 $785,000 $1,435,000 $2,255,770 13, 262 13, 262 25,000 70,000 95,000 $22,508 $760,000 $1,365,000 $2,147,508 Interest expense on long-term debt for the fiscal year ended Septem- ber 30, 1987 totaled $182,354 (general long-term debt - $65,855; Enterprise Fund - $116,499). NOTE 12 - DEFEASANCE OF PRIOR DEBT In prior years, the Village defeased the 1978 Series, $3,915,000 Water Revenue Refunding Bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the Village's financial statements. At September 30, 1987 $8,725,391 of bonds outstanding, including interest, are considered defeased. 47 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1987 NOTE 13 - INTERFUND RECEIVABLES AND PAYABLES Individual fund interfund receivables and payables at September 30, 1987 are as follows: Fund General Fund Enterprise Fund NOTE 14 - INTERFUND ADMINISTRATIVE FEE Interfund Interfund Receivables Payables $9, 582 9,582 $9,582 $9,582 During the year ended September 30, 1987, the Enterprise Fund remitted $68,000 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. NOTE 15 - CONTRIBUTED CAPITAL - ENTERPRISE FUND Contributed capital consists of the following: Contributions from capital improvement charges $1,182,613 Contributions from developers 782,567 $1,965,180 For the year ended September 30, 1987, contributions from capital improvement charges totaled $89,341 and contributions from developers totaled $208,903. 48 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1987 NOTE 16 - EXCESS OF EXPENDITURES OVER APPROPRIATIONS Excess of expenditures over appropriations, as adopted in the budget for the fiscal year ended September 30, 1987 and as presented on pages 24 and 25, are as follows: General Fund General government $8,704 Public safety 1,692 Culture/recreation 3,468 NOTE 17 - LITIGATION 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. 49 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Revenues - Budget and Actual For the Fiscal Year Ended September 30, 1987 Taxes Current ad valorem taxes Delinquent ad valorem taxes Franchise fees Utility service taxes Dotal taxes Budget $1,252,000 1, 000 241 , 551 365,737 1,860,288 Actual $1,252,073 2, 191 229,276 397,631 1,881,171 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 Camp. planning assistance 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 49, 000 67, 334 2,974 119,30 16, 900 129,228 7, 237 1, 542 82, 000 21, 320 164, 400 12,000 434,627 750 400 850 2, 000 1, 350 2,500 7,85 50 50, 343 68,623 4,337 15, 678 129,234 5, 902 4 86 79, 479 21, 524 160, 790 8,292 421,385 1, 150 336 999 2, 424 1, 231 2,740 8,880 Variance - Favorable (Unfavorable) $ 73 1,191 (12, 275 ) 31,894 20,883 1, 343 1, 289 1,363 ~~5 (1,222) 6 (1,335) (1,056) (2, 521 ) 204 (3,610) (3,708) (13,242) 400 (64) 149 424 (119) 240 1,030 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Revenues - Budget and Actual For the Fiscal Year Ended September 30, 1987 Fines and forfeits Court fines Parking tickets Total fines and forfeits Miscellaneous revenues Interest Other Abandoned bicycle sales Total miscellaneous revenues Intragavernmental services Administrative management - water fund Total revenues Variance - Favorable Budget Actual (Unfavorable) $ 45,000 300 45,300 $ 50,711 415 51, 126 $ 5,711 115 5,82 25,000 1,000 100 26,100 68,600 $2,562,073 51 38,087 3, 263 4 , 68,000 $2,595,215 13, 087 2, 263 (100) 250 (600) $ 33, 142 ----- VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1987 ~neral government Legislative Travel and per diem Other charges Total legislative Variance - Favorable Budget Actual (Unfavorable) $ 6,800 750 7,550 $ 6, 646 389 7,035 $ 154 361 515 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 Total executive 37,450 37,446 4 2,705 2,703 2 4,725 4,677 48 1 , 525 1, 517 8 2, 315 2, 314 1 1, 205 1, 200 5 5, 900 5, 892 8 100 31 69 450 421 29 6,8531 (6,853) 56,375 63,054 (6,679) Financial and administrative Finance director's and bookkeeper's salary F.I.C.A. Retirement Life and health insurance Worker's compensation insurance 52,205 52,200 5 3, 680 3, 631 49 6, 650 6, 499 151 4, 615 4, 447 168 1, 310 1, 308 2 52 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1987 General government (continued) Financial and administrative (continued) Accounting and auditing Travel and per diem Other charges Office supplies Books, publications, dues Repairs and maintenance - office machines Capital outlay Machinery and equipment Total financial and administrative Legal counsel Legal services Total legal counsel Planning and zoning Planning service Comprehensive plan revision Tatal planning and zoning Other general government Salaries F.I.C.A. Retirement Life and health insurance Worker's compensation insurance Onemployment compensation Employee recognition program Fire/rescue study Variance Favorable- Bud~et Actual (Unfavorable) $ 18,250 $ 18,250 1, 400 1, 337 350 315 1,200 1,151 250 135 2,200 1,705 1,260 1,090 93,370 92,068 36,500 36,500 31,911 31,911 27,800 21,000 48,800 27, 749 20,091 47,840 63 35 49 115 495 170 1, 302 4,589 51 909 ~_ 960 29,450 29,416 34 1, 150 1, 133 17 2, 100 2, 042 58 1,350 1,341 9 670 666 4 1, 000 1, 000 2,500 2,500 850 (850) 53 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1987 eneral government (continued) Other general government (continued) Travel and per diem Communication services Secretarial services Postage Utility services Fire hydrant rental fees Leases Insurance Village Hall maintenance Office machines maintenance Other charges Office supplies Books, publications, dues Aid to private organizations Other grants and aids Capital outlay Machinery and equipment Variance Favorable Budget Actual (Unfavorable) $ 650 $ 631 $ 19 3,500 3,441 59 5,000 4,936 64 3, 000 2, 873 127 8, 500 8, 387 113 1 1, 400 1 1, 400 5, 250 5, 241 9 36, 500 34, 472 2, 028 6, 000 4, 244 1, 756 1, 500 129 1, 371 10, 150 9, 183 967 6,000 5,943 57 1, 500 1, 104 396 24, 100 24, 100 6, 330 6, 328 2 1,085 2,086 Total other general government ~tal general government ubl is safety Folice department 168,685 159,946 411,280 401,854 (1,001) 8,739 9,426 Salaries 499, 400 483, 204 16, 196 Overtime 23, 300 23, 283 17 F.I.C.A. 36, 780 36, 457 323 Retirement 73, 075 ~3, 052 23 Life and health insurance 58,000 57,116 884 54 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1987 Budget Actual Variance - Favorable (Unfavorable) Public safety (continued) Police department (continued) Worker's compensation insurance $ 21, 535 $ 21, 535 $ Travel and per diem 5,120 5,013 107 Communication services _ 6,200 6, 141 59 Leases 410 408 2 Insurance 29,.250 29,244 6 Repairs and maintenance - cars 13,300 13,278 22 Repairs and maintenance - office equipment 1,500 1,434 66 Repairs and maintenance - radio communications 3,515 3,505 10 Repairs and maintenance - other 1,350 1,342 8 Printing and binding 300 292 8 Other charges 2, 800 2, 780 20 Personnel training 3,100 3,085 15 Office s uppl ies 3, 800 3, 7 95 5 Gasoline and oil 18,100 18,058 42 Uniforms and equipment 7,310 7,230 80 Books, publications, dues 450 434 16 "Capital outlay Machinery and equipment 36,000 37,692 (1,692) Total police department 844,595 828,378 16,217 Detention and/or correction Other contractual services - P.B.C. Sheriff's Department 150 150 Total detention and/or correction 150 150 Protective inspections Salaries 73, 500 73, 037 463 F.I.C.A. 5,200 5,083 117 Retirement 9,300 9,180 120 Life and health insurance 9,575 9,567 8 Code enforcement service 5,600 5,584 16 55 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1987 Variance - Favorable Budget Actual (Unfavorable) ~blic safety (continued) Protective inspections (continued) Office supplies $ Worker's compensation insurance Travel and per diem Communication services Other charges Books, publications, dues Repairs and maintenance - office machines Capital outlay Machinery and equipment 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 Total fire protection and emergency medical service otal public safety hysical environment Contractual services - garbage and trash ~otal physical environment 3, 450 $ 3, 427 $ 23 2,050 2,047 3 2, 700 2, 625 75 2, 150 2, 107 43 125 113 12 1,000 787 213 1,350 1,218 132 6,150 6,131 19 122,150 2 , 500 489 11 5, 000 2, 390 2, 610 500 500 6,000 2,879 376,439 376,439 _ 376,439 376,439 1,349,334 1,328,602 2____0,732 280,000 278,752 1,248 - ~ 7 , ~$ 'ransportation Road and street facilities Salaries Overtime F.I.C.A. 56 83, 000 ?6, 757 6, 243 750 490 260 6,000 5,804 196 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1987 Transportation (continued) Road and street facilities (continued) Retirement Life and health insurance Worker's compensation insurance Engineering services Travel and per diem Communication services Street lights Insurance Repairs and maintenance - truck and tractor Repairs and maintenance - drainage Repairs and maintenance - general Bridge restoration Other charges Gasoline and oil - truck and tractor Gasoline and oil - other Small tools Traffic signs Road materials and supplies Capital outlay Machinery and equipment Road improvements Improvements other than buildings - replacement of Royal Palms Improvements other than buildings - beautification Total transportation Variance - Favorable Budget Actual (Unfavorable) $ 10, 650 $ 10, 620 $ 30 1 1, 600 10, 575 1, 025 6, 530 6, 529 1 49, 000 48, 942 58 1, 400 1, 245 155 500 4 78 22 19, 000 18, 235 765 7, 025 7, 008 17 1, 250 831 419 7,000 6,022 978 45, 025 44, 907 118 10, 635 10, 630 5 100 41 59 1, 100 893 207 2, 000 517 1, 483 1, 175 1, 161 14 3, 000 1, 893 1, 107 13, 160 11, 686 1, 474 28, 030 28, 026 4 13, 000 12, 078 922 16,000 924 15,p~6 336,930 306,92 30,638 Auman services Health - mosquito control Salaries 1,200 2111 989 F.I.C.A. 90 15 75 57 VILLAGE OF TEQUESTA, FLORIDA General Fund. Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1987 uman services (continued) 8ealth - mosquito control (continued) Retirement Repairs and maintenance - equipment Flushing solution Other charges Gasoline and oil Insecticide otal human services Variance - Favorable Budget Actual (Unfavorable) $ 170 $ $ 170 20U 200 250 149 101 45 25 20 75 75 2,700 2,507 4,730 2,907 1,823 ulture/Recreation Parks and recreation Salaries Overtime F.I.C.A. Retirement Life and health insurance Worker's compensation insurance Travel and per diem Communication services Utility services - trailer and office Utility services - water Insurance Buildings, equipment and grounds repairs and maintenance Fields repairs and maintenance Truck repairs and maintenance Other charges 43,200 42,996 204 200 200 3,090 2,695 395 5,000 4,924 76 1, 825 1, 824 1 1,435 1,432 3 1, 400 1, 2 65 135 600 560 40~ 8, 525 8, 419 106 3, 390 3, 389 1 11 , 400 11, 379 21 4,600 4,572 28 400 398 2 200 200 58 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental- Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1987 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 Constitution Park Park land purchases Playground parks - wood fence Machinery and equipment Dover Road park improvements Total culture/recreation Budget Actual $ 50 $ 31 450 358 1, 200 1, 200 100 3, 500 34, 250 3,600 4, 000 3,275 624 921 15 3, 475 1 1, 253 7, 468 3, 148 136,890 111,146 Variance - Favorable (Unfavorable) $ 19 92 576 279 85 25 22,997 3, 600 (3,468) 127 25,744 Total expenditures $2,519,164 $2,429,553 $ 89,611 59 PROPRIETARY FUND (ENTERPRISE FUND) VILLAGE OF TEQUESTA, FLORIDA Enterprise Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year_Ended September 30, 1.987- -- Purchased water Personal services Wages F.I.C.A. taxes Retirement Life and health insurance Employee recognition program Total personal services Contractual services Insurance Professional services Communication services Rentals Legal Engineering Accounting and auditing Other current charges Licenses and fees Administrative management Personnel training and travel Total contractual services Supplies Office supplies Truck gas and oil Chemicals Small tools Laboratory supplies Diesel fuel Books Total supplies Heat, light and power Repairs and maintenance Variance - Favorable Budget Actual (Unfavorable) $467,000 $466,068 $ 932 $15 7, 100 $145, 950 $ 1 1, 150 1 1, 170 10, 811 359 19, 300 19, 163 137 23, 690 22, 748 942 175 175 211,435 19 , ,763 $ 21 , 400 $ 21, 133 $ 267 1 1, 000 9, 727 1, 273 5, 400 5, 310 90 1, 550 1, 321 229 2, 000 767 1, 233 15,600 15,585 15 19, 700 19, 698 2 3, 400 1, 624 1, 776 1, 700 1, 690 10 68, 000 68, 000 7,050 6,502 548 156, 8 ~~' 3 ---_-~ r -~ $ 3,300 $ 3,022 $ 278 2,250 2,230 20 24, 000 27, 064 1, 936 650 649 1 300 300 80 80 350 95 255 ~~~ -____ ~ --- $ 80,000 $ 79,121 $ 879 $145,175 $140,223 $ 4,952 ---- 60 VILLAGE OF TEQUESTA, FLORIDA Enterprise Fund Comparative Summary of Operations For the Fiscal Years Ended September 30, 1987 and 1986 Operating revenues Charges for services Operating expenses Purchased water Personal services Contractual services Supplies Heat, light and power Repairs and maintenance Depreciation Bad debts Total operating expenses Operating income Nonaperating revenues (expenses) Interest revenue Interest expense and fiscal charges Total nonoperating revenues (expenses) Income before operating expenses Operating transfers fout) Net income 1987 1986 $1,633,794 $1,512,281 466,068 198,672 151,357 28,060 79, 121 140,223 368,660 2,377 466,468 176,550 143,860 23,243 79, 161 52,816 361,268 6,884 1,434,538 199,256 1,310,250 202,031 126,740 108,328 (132,919) (134,421) (6,179) (26,093) 193,077 175,938 (50,000) $ 143,077 $ 175,938 61 VILLAGE OF TEQUESTA, FLORIDA Enterprise Fund Schedule of Restricted Accounts Under Revenue Bond Ordinance For the Fiscal Year Ended September 30, 1987 Sinking Account Balance, October 1, 1986 Cash and investments $ 1,342 Unamortized discount on investments Accrued interest receivable 1,342 Increases Transfers from unrestricted accounts 180,500 Investment earnings 7,889 Transfers from restricted accounts 570,000 Total 758,389 Decreases Capital outlay Interest payments Other debt service costs 10,932 Transfers to other restricted accounts 846,514 Transfers to other unrestricted accounts Total 857,446 Balance, September 30, 1987 Cash and investments (97,746) Unamortized discount on investments Accrued interest receivable 31 Total $(97,715) 62 Bond Renewal and Amortization Reserve Replacement Account Account Account $167, 677 $288, 020 $ 5, 192 (9,407) 5,395 3,908 22 163,665 291,928 5,214 -.--- 33, 935 124 113,963 634,434 5,000 113,963 668,369 5,124 7, 420 5,395 .411 22 648, 805 4,971 5,000 10,366 649,216 12,442 281, 640 307, 583 ( 2, 104 ) (14,378) 3,498 $267,262 $311,081 $(2,104) 63 VILLAGE OF TEQUESTA, FLORIDA Amortization Schedule $1,525,000 Water Refunding Revenue Bonds - Series 1985 September 30, 1987 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 $1,365,000; the payment schedule follows: Due Date Principal Interest Total 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 1 150,000 12,015 162,015 1996 Oct. 1 120,000 5,340 125,340 Totals $1,365,000 $ 706,614 $2,071,614 64 VILLAGE OF TEQUESTA, FLORIDA Schedule of General Fixed Assets By Source September 30, 1987 General fixed assets Land Building and improvements Equipment Improvements other than buildings Total general fixed assets Investment in general fixed assets General Fund revenue Special Revenue fund revenue (Federal Revenue Sharing) Total investment in general fixed assets $ 49, 728 214,832 467, 576 17--- 0_? $902,758 $831, 266 7- 1--;492 $902,758 65 VILLAGE OF TEQUESTA, FLORIDA Schedule of General Fixed Assets By Function and Activity September 30, 1987 Buildings and Total Land Improvements Equipment General government $210,337 $35,000 $127,892 $ 47,445 Fublic safety 225, 994 1 4, 180 21 1, 814 Transportation 111,723 48,741 62,982 Human services 4, 810 4, 810 Culture/recreation 116,497 14,728 79,997 21,772 Total general fixed assets Allocated to functions 669, 361 49, 728 270, 810 348, 823 Frior year data which cannot be allocated 233,397 114,644 118,753 Total general fixed assets $902,758 $49,728 $385,454 $467,576 66 VILLAGE OF TEQUESTA, FLORIDA Schedule of Changes in General Fixed Assets By Function and Activity September 30, 1987 General General Fixed Assets Fixed Assets October 1, September 30, Function and Activity 1986 Additions Deletions 1987 General government $201,030 $ 9,307 $ $210,337 Public safety 205, 982 37, 692 17, 680 225, 994 Transportation 74, 821 40, 636 3, 734 11 1, 723 8uman services 4, 810 4, 810 Culture/recreation 80,297 37,422 1,222 116,497 566,940 $125,057 $22,636 669,361 Prior to allocation by function 233,397 233,397 $800,337 $902,758 67 VILLAGE OF TEQUESTA, FLORIDA Amortization Schedule Improvement Revenue Bonds - Series 1979 September 30, 1987 The debt was incurred on April 1, 1980, through the issuance of $910,000 improvement revenue bonds. The proceeds were used for paving and drainage improvements. On September 30, 1987, the outstanding bonds totaled $760,000: Coupon Total Rate Princi al Interest Payments 1988 October 1 8.40$ $ 25,000 $ 63,755 1989 October 1 ~ 8.30$ 25,000 61,655 1990 October 1 8.30$ 30,000 59,580 1991 October 1 8..30$ 30,000 57,090 1992 October 1 8.40$ 54, 600 1993 October 1 8.40$ 54,600 1994 October 1 8.40$ 54, 600 1995 October 1 8.40$ 54,600 1996 October 1 8.40$ 54,600 1997 October 1 8.40$ 54,600 1998 October 1 8.40$ 54,600 1999 October 1 8.40$ 54,600 2000 October 1 8.40$ 54,600 2001 October 1 8.40$ 54,600 2002 October 1 8.40$ 54,600 2003 October 1 8.40$ 54,600 2004 October 1 8.40$ 650,000 _ 54,600 Totals $760,000 $ 951,880 $ 88, 755 86, 655 89, 580 87, 090 54, 600 54, 600 54, 600 54, 600 54, 600 54, 600 54, 600 54, 600 54, 600 54, 600 54, 640 54, 600 704,600 $1,711,880 68 VILLAGE OF TEQUESTA, FLORIDA Schedule of Investments - All Funds September 30, 1987 Enterprise Fund Bond Amortization Account Enterprise Fund United States Treasur Obli ations Unamortize Interest Maturity Par Value Cost Discount Rate Date $250,000 $234,688 $14,378 7.625$ 2/15/07 Retained earnings account General Fund Money Market Accounts Interest Amounts Rate $ 5,000 55,000 Various Various 69 VILLAGE OF TEQUESTA, FLORIDA Schedule of Investments - All Funds September 30, 1987 Debt Service Fund Enterprise Fund Meter deposits account Retained earnings account Reserve account Sinking Fund Capital improvement account General Fund Capital Projects Fund Certificates of Deposit Interest Maturity Amounts Rate Date $100,000 11.000 4/01/90 100,000 7.200 4/08/88 35,500 7.100 1/04/88 125,00 7.100 1/11/88 140,000 6.75 11/13/87 200,000 7.100 2/11/88 200,000 7.200 3/11/88 100,000 7.200 4/08/88 100,000 7.100 1/04/88 100,100 7.100 1/04/88 200,000 6.75 10/02/87 250,000 7.500 3/30/88 150,000 6.900 12/14/87 233,805 7.000 7/14/88 150,000 7.500 3/30/88 64,500 7.100 1/04/88 60,000 6.75 11/13/87 150,000 7.100 11/13/87 200,000 6.00 12/11/87 150,000 6.75 10/02/87 100,000 7.100 1/04/88 70 VILLAGE OF TEQUESTA, FLORIDA Schedule of Insurance September 30, 1987 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 BAP566260 $1,000,00.0 Public Employees Blanket Bond H04135132 $100,000 Workmen's Compensation WC0075436-04 $500,000 Multi-peril Policy SCAMP623045 $1,000,000 Folice Professional Liability LE 861182 $1,000,000 Police Official's and Employee's Liability 6887030 $1,000,000 Umbrella Liability XC43156 $1,000,000 Unlawful and Intentional Death Policy (Police Department Personnel, death resulting from an intentional and illegal act) DGA-725328 $50,000 71 VILLAGE OF TEQUESTA, FLORIDA General Revenues by Source (Unaudited) (1) Last Ten Fiscal Years Fiscal Year Ended September 30 Licenses and Taxes (3) Permits 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 1 13, 982 1985 1,777,305 102,894 1986 1, 729, 412 104, 014 1987 1, 881, 171 123, 303 (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. 72 Charges for Fines and Intergovernmental Services,: Forfeits Miscellaneous(2) Total $216, 284 $ 8, 200 $ 5, 120 $ 14, 650 $ 871, 780 202, 807 7, 172 12, 524 35, 556 956, 618 237, 467 7, 874 1 1, 891 45, 767 1, 100, 154 249, 224 8, 178 18, 573 124, 152 1, 368, 751 200, 916 8, 200 23, 574 98, 081 1, 396, 830 283, -130 9, 463 32, 455 99, 601 1, 534, 633 335, 899 8, 807 48, 783 107, 163 1, 743, 741 348,936 9,023 43,330 144,301 2,425,789 385, 952 11, 869 42, 929 151, 640 2, 425, 816 421, 385 8, 880 51, 126 123, 140 2, 609, 005 FISCAL YEAR ENDED SEPTEMBER 9Q, 1987 fNTERGOVERNMENTAf_ (16.2X) ~ BARGES FOR SERVICES (0.3X) LICENSES AND PERMITS (4.7X) FlNES AND FORFERS (2.0X) TAXES (72.17[) 73 fNISCEW4NE01JS (4.7l~ VILLAGE OF TEQUESTA, FLORIDA General Government Expenditures by Function (Unaudited) (1) Last Ten Fiscal Years Fiscal Year Ended September 30 General Public Government Safety (2) Transportation 1978 $194,720 $ 278,171 5144,676 1979 169,923 395,799 543,838 1980 175,074 470,194 296,792 1981 197, 191 534, 729 125, 801 1982 271, 157 635, 668 299, 846 1983 279, 561 703, 124 356, 401 1984 274, 038 755, 573 227, 840 1985 296, 537 1, 143, 971 239, 512 1986 373,195 1,234,668 200,309 1987 401, 854 1, 328, 602 306, 292 (1) Includes General, Special Revenue and Debt Service Funds. (2) Includes Fire/Emergency Contract with Palm Beach County year 1985. Source: Village of Tequesta financial reco-rds. 74 Culture Physical Human and Debt Environment Services Recreation Service Total ,~: $139, 816 $ 4, 073 $ 55, 271 $ 13, 601 $ 830, 328 150, 930 4, 397 63, 813 26, 385 1, 355, 085 186, 776 7, 281 71, 986- 101, 330 1, 309, 433 127, 641 8, 382 76, 857 90, 535 1, 161, 136 159, 155 1 1, 069 82, 808 89, 088 1, 546, 791 177, 427 8, 024 79, 719 92, 988 1, 697, 244 183, 591 2, 154 128, 247 91, 299 1, 662, 742 206, 776 ~ 10, 907 121, 847 89, 603 2, 109, 153 240, 507 5, 768 120, 204 87, 896 2, 262, 547 278, 752 2, 907 1 1 1, 146 91, 215 2, 520, 768 FISCAL YEAR ENDED SEPTEMBER 30, 1987 CULTURE AND RECREA?lON (4.4lr) a'HY5ICAL ENViROT:MEN DEe7T SERVICE (3.6% TRAf~SPOr~'iAT10N (72.211) HUMAN SERVICES (0.17L) iIERNIJENT (1S.>i!~ IY (527ln 75 VILLAGE OF TEQUESTA, FLORIDA Property Tax Levies and Collections (Unaudited) (1) Last Ten Fiscal Years Fiscal Year Total Ended Tax Levy September 30 (1) 1978 $ 358,362 1979 387,591 1980 410,854 1981 534,655 1982 569,277 1983 550,573 1984 641, 179 1985 1,038,027 1986 1, 129, 458 1987 1, 255, 399 Current Tax Collections (1) $ 357, 307 386, 889 407, 931 531, 676 558, 068 540, 876 636, 533 1, 037, 003 1, 128, 128 1, 252, 073 Percent of Levy Collected 99.7 99.8 99.3 99.4 98.0 98.2 99.3 99.9 99.9 99.7 Outstanding Delinquent Taxes $ 1, 055 702 2, 92 3 2, 9 79 11, 209 9, 6 97 4, 646 1, 024 1, 330 3, 326 (1) Includes discounts taken by property taxpayers. Source: Palm Beach County Tax Collector's office. Percent of Delinquent Taxes to Tax Levy .2 .2 .7 .6 2.0 1.8 .7 .1 .1 .3 76 VILLAGE OF TEQUESTA, FLORIDA Taxable Value and Just Value of Taxable Property (Unaudited) Last Ten Fiscal Years Fiscal Year Ended September 30 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 Real Property Taxable Value Just Value $ 93, 399, 125 96, 414, 986 108,755,676 146,062,451 200,770,160 199, 394, 093 206, 001, 538 219,001,538 233,658,151 257, 766, 850 $102, 927, 462 106, 896, 714 118,734,404 212, 663, 476 237, 918, 493 243, 749, 997 262, 247, 858 275,901,415 297,370,052 324, 296, 888 Source: Palm Beach County Property Appraiser's office. 77 Personal Property Total Ratio Taxable Just Taxable Just Taxable Value Value Value Value Value To Just Value $ 6,398,719 $ 9,807,003 $ 99,797,844 $112,734,465 89~ 7, 218, 482 10, 918, 206 103, 633, 468 1 17, 814, 920 88$ 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$ 11, 547, 658 12, 241, 396 269, 31 4, 508 336, 718, 284 80$ 78 VILLAGE OF TEQUESTA, FLORIDA Property Tax Rates - All Overlapping Governments (Unaudited) (Per $1,000 of Assessed Value) Last Ten Fiscal Years Fiscal Year Ended September 30 County General School County Fund County Board Library 1978 4.1110 5.9808 9.7500 .3838 1979 4.0090 6.0734 8.3000 .3717 1980 4.0540 6.3170 7.0200 .3620 1981 5.0430 7.3227 8.6300 .4008 1982 2.9839 4.9361 6.9192 .3707 1983 2.6762 4.1823 6.1331 .3261 1984 3.1506 4.2489 6.9329 .3526 1985 4.9200 4.1836 7.1720 .3525 1986 5.0867 4.5271 7.2280 .3428 1987 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 a part of Palm Beach County through consolidation. The County provides fire rescue service to the Village at an annual contract rate. The millage required to fund the service is included within the Village tax rate. Source: Palm Beach County Property Appraiser's office. 79 South Florida Water Management District Jupiter Jupiter Fire Inlet District District No. 1 Palm Beach Jun io r 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 80 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 1978 3, 814 $ 99, 797, 844 19?9 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 1987 ~ 4, 141 269, 314, 508 * Source: Palm Beach County Planning Board, University of Florida Estimates and Federal Census, and Village Building Department 81 Debt Ratio of Net Gross Service Net Bonded Debt Net Bonded Bonded Monies Bonded to Assessed Debt Debt (1) Available Debt Value Per Capita $ 25, 000 $ 14, 1 10 $ 10, 890 .O1 2.86 910, 000 147, 650 762, 350 . 79 126.47 895, 000 147, 650 747, 350 . 64 202 81 880, 000 102, 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 33 760,000 118,377 641,623 .23 . 154.94 82 VILLAGE OF TEQUESTA, FLORIDA Legal Debt Margin (Unaudited) September 30, 19.87 The Village of Tequesta, Florida has no legal debt margin. 83 VILLAGE OF TEQUESTA, FLORIDA Computation of Direct and Overlapping Debt (Unaudited) September 30, 1987 Taxing Authority Village of Tequesta Palm Beach County Total Net Debt Outstanding $ 641,623 97,660,000 Percentage Applicable To Tequesta Amount Applicable To Tequesta 84 100.00$ . 74$ $ 641, 623 722,684 $1,364,307 VILLAGE OF TEQUESTA, FLORIDA Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures (Unaudited) Last Ten Fiscal Years Fiscal Year Ended September 30 Principal Interest Total Total General Debt Expenditures Service (1) Ratio of Debt Service to Total General Expenditures 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, 158, 728 3. 1 1987 25, 000 65, 855 90, 855 2, 429, 553 3.7 (1) Includes General, Special Revenue and Debt Service Funds. 85 VILLAGE OF TEQUESTA, FLORIDA Revenue Bond Coverage Water Bonds (Unaudited) Last Ten Fiscal Years Net Revenue Kcal Year Available Debt Service Re quirements Ended Gross Operating for Debt __ Cover- ~tember 30 Revenues Expenses Service Principal Interest Total a e 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, 2Q7, 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 1 986 1, 620, 609 1, 310, 250 310, 359 65, 000 134, 421 199, 421 1.56 1987 1, 760, 534 1, 434, 538 325, 996 70, 000 132, 919 202, 919 1 . 61 86 VILLAGE OF TEQUESTA, FLORIDA Property Value, Construction and Bank Deposits (Unaudited) Last Five Fiscal Years Commercial Residential Construction (1) Construction(1) _ Property Value(3) Number Number Fiscal of of Bank Real Personal Year Units Value Units Value Deposits (2) Property Propert y 1983 Z $ 687,754 39 $5,535,8.34 $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, 51 9, 953 233, 658, 151 10, 812, 3 1987 1 116,250 27 2,717,154 269,494,041 257,766,850 11,547,6 Source: 1) Village of Tequesta Planning and Zoning. (2) Tequesta Commercial Banks and Savings and Loan Associations. (3) Palm Beach County Property Appraiser's office. {4} Information only available for years provided. 87 VILLAGE OF TEQUESTA, FLORIDA Principal Taxpayers (Unaudited) September 30, 1987 Taxpayer Lighthouse Plaza (Lighthouse Plaza Assoc., LTD.) Dorner Properties (Bank of Palm Beach & Trust Co.) Tequesta Shoppes (Pride Plaza) Village Square (Tequesta Shoppes, LTD.) Barnett Bank (First Bank. of Jupiter/ Tequesta) Tequesta Plaza (Felhaber Corporation) Tequesta Fashion Mall (Edwin J. Nelson Tequesta Country Club Tequesta Associates (Pantlin Associates) Richard Haisfield (Developer) Percentage 1987 of Assessed Asse ssed Type of Business Valuation Valuation Shopping Center Undeveloped Real Estate $6, 408, 849 2.37 6,090,294 2.26 Shopping Center Shopping Center Banking Shopping Center Shopping Center Golf/Social Club Undeveloped Commercial Real Estate Undeveloped Residential Real Estate 4, 584, 903 1.70 3, 324, 198 1 . 23 3, 233, 805 1 . 20 2,483,619 .92 2,269,802 .84 1,842,601 .68 1, 700, 127 .63 1, 672, 200 .62 Source: Palm Beach County Property Appraiser's office. 88 VILLAGE OF TEQUESTA, FLORIDA Miscellaneous Statistics (Unaudited) September 30, 1987 Date of Incor oration: 1957 Forms of Government: Council-Manager, 3 Councilmembers elected even years, 2 Councilmembers elected odd years Municipal Elections: Non-Partisan Area: 1.8 square miles Miles of Streets: Approximately 17 miles Fire Protection: Police Protection: Provided by - Palm Beach County Fire Insurance Rating - 6 Number of stations - 1 Number of certified officers - 17 Number of dispatchers - 4 Municipal Water Department: Number of customers - 4,018 Average daily consumption - 2.469 million gallons Miles of water mains ~- 43 miles Sanitary Sewage: Service provided by Loxahatchee River Environmental Control District Storm Sewers: Adequate coverage Garbage Collection: Electric Service: Service franchised to Nichol's Sanitation Frequency of service is bi-weekly Florida Power & Light Company Telephone Service: Southern Bell Telephone & Telegraph Company Building Permits-Issued: Recreation and Culture: 1, 943 Number of parks - 3, approximately 52 acres Number of libraries - 1, branch of PaLn Beach County system Number of volumes - 15,000-20,000 Municipal Employees: Full-time - 42 Part-time - 5 (seasonal) 89 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) 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 5.9 1987 4, 141 5. 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. 90 LETTER OF COMMENTS TO MANAGEMENT NOWLEN, HOLT & MINER, P.A. CERTIFIED PUBLIC ACCOUNTANTS 21 S FIFTH STREET SUITE 200 POST OFFICE BOX 317 WEST PALM BEACH, FLORIDA 33402 TELEPHONE 1305) 659.3060 vERETT B NCKIEN. CPA I t p30~t 98x1 B E WEEKS. CPA MARILYN ROBERTS, CPA DWARfl T MOLT. CPA KATHLEEN A BENTLEY. CPA R GREGORY SMRH. CPA 14UAM B MhER. CPA KIM MATCHER BEAUMONT, CPA MARTHA ANN HERB. CPA 08ERT W MEyDRIx, JR ,CPA GAIL H MOPE. CPA ROBERT W MELMREICH. CPA INET R. BARICEVICH, CPA The Honorable Mayor and Village Council Village of Tequesta Tequesta, Florida RE: AUDITOR'S REPORT OF COMMENTS ON INTERNAL ACCOUNTING CONTROL AND ADMINISTRATIVE REQUIREMENTS Gentlemen: MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLK ACCOUNTANTS ACCOUNTING FIRM5 AS$OCIATEO iNC BELLE GLADE OFFICE 3J3 S E 2M STREET POST OFFICE BOx J38 BELLE GLADE. FLORIDA 3330 TELEPHONE 13051 996 S6 f 2 We have examined the general purpose financial statements of the Village of Tequesta for the year ended September 30, 1987, and have issued our report thereon dated February 2, 1988. 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. 91 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 procedures. The objectives of a system are to provide management with reasonable, but not absolute, assurance that assets are safe- guarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authoriza- tion and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting prin- ciples. 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 weaknesses 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. During our field work, we received a computer printout which identified Village water customers and the amount of their deposit. The printout was not mathematically correct and when totaled manually did not agree to the computer printed total. After discussion with Village personnel, it was determined the names and amounts on the listing had been cross referenced back to the original deposit documents. A computer program used to generate a printout that does not add correctly can result in over or understated assets or liabilities and cause financial statements to be in error. We recommend that all computer programs be checked for accuracy prior to implementation. For this particular program, a change needs to be made as soon as reasonably possible to insure that accurate financial information is being generated. 92 2. We noticed that bank statements for Improvement Bond Revenue Fund and Improvement Bond Revenue Sinking Fund were not reconciled in a timely manner. Although this appeared to be an isolated instance, we cannot stress enough the importance of timely reconcilation of bank statements. Unreconciled statements allow errors to go undetected and could result in loss of assets or incurring bank charges due to insufficient funds to cover checks. We recommend that bank statements be reconciled upon receipt. 3. We noted that amounts due from the State and other munici- palities .have been accounted for as "accounts receivable" instead of "due from other governments". Incorrect classifi- cation of receivable amounts cause the financial statements to be misleading. We recommend that the Village modify its general ledger system to conform to the Uniform Accounting System for Local Units of Government, State of Florida. The chart of accounts set forth in this system was designed to ensure consistency in financial reporting throughout the state. 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, ~ ~. -~-. 93 NOWLEN, HOLT & MINER, P.A. CERTIFIED PUBLIC ACCOUNTANTS 215 FIFTH STREET SUITE 200 POST OFFICE BOX 347 WEST PALM.BEACH, FLORIDA 33402 TELEPHONE (305) 659.3080 EVERETT B. NOWLEN. CPA (1930-t 9541 B.E. WEEKS. CPA MAfi1LYN ROBERTS. CPA EDWARD T. MOLT, CPA KATHLEEN A. BENTLEY, CPA R. GREGORY SMITH. CPA WILLIAM B. MP1ER. CPA KIM HATCHER BEAUMONT, CPA MARTHA ANN HERB. CPA ROBERT W. HENDRIX. JR., CPA GAIL H. MOVE, CPA ROBERT W. HELMREICH. CPA JANET R. BMICEVK;M, CPA February 2, 1988 REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS BASED ON AN EXAMINATION OF GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH THE STANDARDS FOR AUDIT ISSUED BY THE GAO Honorable Mayor and Village Council Village of Tequesta, Florida MEMBERS AMERICAN I('1STITUTE QF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS ACCOUNTING FIRMS ASSOCIATED INC BELLE GLADE OFFICE 333 S.E. TM STREET POST OFFICE BOX 330 BELLE GLADE, FLORIDA 33430 TELEPHONE (305) 906-56t4 We have examined the general purpose financial statements of the Village of Tequesta, Florida, for the year ended September 30, 1987 and have issued our report thereon dated February 2, 1988. 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 con- sidered necessary in the circumstances. The management of the Village is responsible for the Village's compliance with laws and regulations. In connection with our examination referred to above, we selected and tested transactions and records to determine the Village's compliance with laws and regulations 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. 94 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, I I~.UI)V~ ~ W-815L~ ~ ~ • ~. 95 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. 96