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CAFR_FY Ending_09/30/1988 - ~ -.- ~ `,:.. •., i..t4''.t i.. .. COMPREHENSIVE ANNUAL FINANCIAL REPORT VILLAGE OF TEQUESTA, FLORIDA September 30, 1988 Prepared by the Finance Department VILLAGE OF TEQUESTA, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT September 30, 1988 TABLE OF CONTENTS Page Number Introductory Section Title Page i Table of Contents 1- 2 Letter of Transmittal 3-13 Certificate of Achievement for Excellence in Financial Reporting 14 Village of Tequesta Organization Chart 15 List of Principal Officials 16 Financial Section Auditor's Report--Opinion of Independent Certified Public Accountants 17-18 General Purpose Financial Statements Combined Balance Sheet--All Fund Types and Account Groups 19-22 Combined Statement of Revenues, Expenditures and Changes in Fund Balances--All Governmental Fund Types 23-24 Combined Statement of Revenues, Expenditures and Changes in Fund Balances --Budget and Actual-- General and Special Revenue Fund Types 25-27 Statement of Revenues, Expenses and Changes in Retained Earnings--Proprietary Fund Type 28 Statement of Changes in Financial Position-- Proprietary Fund Type 29 Notes to Financial Statements 30-51 Supplemental Information General Fund Schedule of Revenues--Budget and Actual 52-53 Schedule of Departmental Expenditures-- Budget and Actual 54-61 Proprietary Fund (Enterprise Fund) Schedule of Operating Expenses--Budget and Actual 62 Comparative Summary of Operations--Fiscal Years Ended September 30, 1988 and 1987 63 Schedule of Restricted Accounts Under Revenue Bond Ordinance 64-65 1 VILLAGE OF TEQUESTA, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT September 30, 1988 TABLE; OF CONTENTS (Continued) Page Number Amortization Schedule--Water Refunding Revenue Bonds - Series 1985 66 Fiduciary Fund Statement of Changes in Assets and Liabilities - Agency Fund 67 General Fixed Asset Account Group Schedule of General Fixed Assets By Source 68 Schedule of General Fixed Assets By Function and Activity 69 Schedule of Changes in General Fixed Assets By Function and Activity 70 General Long-Term Debt Amortization Schedule--Improvement Revenue Bonds - Series 1979 71 All Funds Schedule of Investments 72-73 Schedule of Insurance 74 Statistical Section General Revenues by Source 75-76 General Government Expenditures by Function 77-78 Property Tax Levies and Collections 79 Taxable Value and Just Value of Taxable Property 80-81 Property Tax Rates--All Overlapping Governments ~ 82-83 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita 84-85 Legal Debt Margin 86 Computation of Direct and Overlapping Debt 87 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures 88 Revenue Bond Coverage--Water Bonds 89 Property Value, Construction and Bank Deposits 90 Principal Taxpayers 91 Miscellaneous Statistics 92 Demographic Statistics 9 3 Auditor's Report on Internal Accounting Controls 94-97 Report on Compliance with Laws and Regulations 98-99 Statutory Report 100 2 VILLAGE OF TEQUESTA Post Office Box 3273 • 357 Tequesta Drive Tequesta. Florida 33469-0273 • (305) 746-7457 December 19, 1988 The Honorable Mayor and Village Council Village of Tequesta Tequesta, Florida Gentlemen: The Comprehensive Annual Financial Report of the Village of Tequesta, Florida, for the fiscal year ended September 30, 1988, is hereby submitted. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the Village. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the financial position and results of operations of the various funds and account groups of the Village. All disclosures necessary to enable the reader to gain an understanding of the Village's financial activities have been included. 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 Governmental Accounting Standards Board and the American Institute of Certified Public Accountants. ACCOUNTING SYSTEM AND BUDGETARY CONTROL In developing and evaluating the Village's accounting system, consideration is given to the adequacy of internal accounting 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. We 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, 1988. 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 Temporary idle cash is invested with various financial institu- tions located within the Village and the State Board of Administra- tion, Local Government Surplus Funds Trust Fund Investment Fool, in accordance with the requirements set forth in the Florida Statutes. Investments with local financial institutions are comprised of certificates of deposit and money market accounts ranging from 30 to 365 days to maturity. Investments with the State Board of Adminis- tration consist of obligations of the U.S. Treasury and its agencies, money market securities of highest quality such as commercial paper, bankers acceptance, corporate notes and repurchase agreements. Because of the short maturities and high quality, securities in this fund are considered practically risk free. 5 The Honorable Mayor and Village Council Village of Tequesta Depositories are selected based on a comparison of interest rates. The average yield on maturing investments during the year was 7.4$. The average yield on money market accounts was 5.4$. 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 $3,019,915 in 1987-1988. The detail is summarized below: REVENUES Source Taxes Licenses and permits Intergovernmental revenues Charges for services Fines and forfeitures 1986-87 1987-88 Amount Amount $1,881, 171 $2, 143, 933 123, 303 421, 385 8,880 51, 126 Percentage of Total Revenues 71.0$ 5. 7$ 16.3$ .68 1.8$ Miscellaneous and intra- governmental revenues Total 170, 834 493,644 19, 562 53, 034 109,350 138,908 $2,595,215 $3,019,915 4.6$ 100.0$ 6 The Honorable Mayor and Village Council Village of Tequesta EXPENDITURES Expenditures for the General Fund totaled $2,555,048 in 1987-88. The detail is summarized below: Purpose Current General government Public safety Physical environment Transportation Human services Culture and recreation Total Revenue and Expenditures 1986-87 1987-88 Amount Amount $ 401,854 $ 429,632 1,328,602 1,435,360 278,752 306,292 2,907 111,146 $2,429,553 308,215 269,873 502 111,466 $2,555,048 Percentage of 1987-88 Total 16.8$ 56.2$ 12.1$ 10.68 .0$ 4.3$ 100.0$ Revenues reported this fiscal year were $424,700, or 16.4$ 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 .4384 mills and a moderate increase in Licenses and Permit Revenues resulting from an increase in "land development fees" for administrative and associated costs, and Intergovernmental Revenues consisting of various taxes collected by the State of Florida, Department of Revenue. 7 The Honorable Mayor and Village Council Village of Tequesta Expenditures reported this fiscal year were more than expenditures reported for the previous increased expenditures were attributed to: 1. Employee personal service expenses which Living Adjustment for all employees of increase for employees averaging 3$, insurance premiums of 10.$. $125,495, or 5.28 fiscal year. The included a Cost of 3$, annual merit increased health Provision was also made in the budget providing for the additional position within the Village Manager's Division for an "Administrative Assistant to the Village Manager" and for a full-time "Administrative Secretary" replacing the part-time Secretary within the Manager's Division. 2. Operation and Maintenance expenses experienced increases for general insurance and workers compensation insurance of 10$. Physical Environment expenses were increased 10$ 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 decreased 1$. 3. Capital Outlay Expenses reflected a substantial decrease for Transportation Improvements consisting of road and drainage improvements which were reported in the "Capital Projects Fund" established the previous fiscal year. Capital Outlay Expenses reported in the General Fund consist primarily of expenditures for departmental equipment replacement and additions. Fund Balance The General Fund has a fund balance of $905,724 at September 30, 1988. The balance is summarized as follows: Fund balance, September 30, 1987 $ 660,857 Excess of revenues over expenditures 464,867 Operating transfers out (220,000) Fund balance, September 30, 1988 $ 905,724 8 The Honorable Mayor and Village Council Village of Tequesta 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. Revenue and Expenditures Revenues and Other Financing Sources reported this fiscal year were $289,192 consisting of reimbursements from Palm Beach County Government for the Tequesta Drive Improvement Project in the amount of $74,447, $14,745 Interest Income on Investments, Inter-Fund Transfers of $150,000 from the General Fund and $50,000 from the Water Enterprise Fund. Expenditures reported this fiscal year were $272,502 for the following listed projects. 1987-88 Project Amount Dover-Elm Drainage Project $ 62,586 Tequesta Country Club Drainage Project 31,267 Tequesta Drive Road Improvement Project 71,840 U.S. Highway No. 1, Palm Trees Beautification Project 27,307 Village Hall, Renovation Project 7_ 9,502 $27.2,502 During the "Budget Process" for the fiscal year it was deter- mined that the annual level of funding to the Capital Projects Fund would be $200,000. Consisting of Inter-Fund Transfers from the General Fund of $150,000 and from the Water Enterprise Fund of $50,000. Consideration will be given during the next fiscal year Budget Hearings to provide additional funding to meet annual inflationary trends. AGENCY FUND The Agency Fund is used to account for investments held by the Village as trustee for employees participating in the Deferred Com- pensation Plan. 9 The Honorable Mayor and Village Council Village of Tequesta DEBT SERVICE FUND AND GENERAL LONG-TERM DEBT ACCOUNT GROUP The Debt Service Fund is used to account for the accumulation of resources foc 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 Septem- ber 30, 1988, $735,000 of the bonds were outstanding. ENTERPRISE FUND Enterprise Fund income and expense data of the Village Water System for 1988 is shown in the following schedule: Operating revenues $1,668,127 Operating expenses 1,437,407 Operating income 230,720 Non-operating revenues 40,630 Operating transfer (out) (50,000) Net income $ 221,350 10 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, 1988, $1,290,000 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 class if ied as land, buildings, improvements other than buildings and equipment. They are acquired by general fund revenue, federal or state grants or gifts. A summary of changes in general fixed assets follows: Balance October 1, 1987 Additions Deletions Land $ 49,728 $ $ Buildings 214,832 79,501 Improvements 170,622 4,604 44,176 Equipment 467,576 105,139 32,265 Total $902,758 $189,244 $76,441 PROSPECTS FOR THE FU TURE Balance September 30, 1988 $ 49,728 294,333 131,050 540,450 $1,015,561 The Village administration is intent upon maintaining its strong financial condition and maintaining service levels with minimal increase in ad valorem property taxes. Budget plans are now being implemented that emphasize the following goals: 1. Utilize greater reliance on technology and improved data processing capability to increase internal efficiency and reduce the need for additional personnel. 2. Continue upgrading the present water acquisition, treatment and distribution system. 11 The Honorable Mayor and Village Council Village of Tequesta 3. In accordance with the intended direction of the "Village Comprehensive Development 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 utilized by those currently contiguous to Village boundaries. 4. Enhance the plan for the routine replacement of major capital equipment and the Long Range Plan for funding capital improvements relative to the needs of the Village infrastructure. 5. Maintain an adequate level of unappropriated fund balances necessary to provide continuity of services. Transference of undesignated funds to the Capital Projects Fund will be considered in this regard. 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. INDEPENDENT AUDIT This report is required by Florida Statutes 166.241 and Chapter 10.550 Rules of the Auditor General. The books, records and annual financial report of the Village have been examined by our independent auditors, Nowlen, Holt & Miner, P.A., Certified Public Accountants, as required, and their opinion on the financial statements of the Village is included as a part of this report. CERTIFICATE OF ACHIEVEMENT The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Village of Tequesta for its comprehen- sive annual financial report for the fiscal year ended September 30, 1987. 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. 12 The Honorable Mayor and Village Council Village of Tequesta A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to the Cer- tificate of Achievement Program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate. ACKNOWLEDGEMENTS 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 financial stability. Respectfully submitted, Thomas G. Brad ord, Vil age Manager J ..~~~~E~-eZ Bi C. Kascav is, Finance Director 13 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, 1987 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards. in governrr~ent accounting and financial reporting. ~~~ 14 VILLAGE OF TEQUESTA ORGANIZATION CHART 15 VILLAGE OF TEQUESTA, FLORIDA Council - Manager Form of Government VILLAGE COUNCIL - 1987-1988 Ron T. Mackail Edward C. Howell William E. Burckart Joseph N. Capretta Earl L. Collings Mayor Vice-Mayor Councilmember Councilmember Councilmember VILLAGE OFFICIALS Thomas G. Bradford John C. Randolph (Jones, Foster, Johnston & Stubbs) Bill C. Rascavelis Carl R. Roderick Scott D. Ladd Gary Preston Thomas C. Hall Manager Attorney Finance Director/Clerk Police Chief Building Official Director, Public Works & Recreation Water System Manager INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS Nowlen, Holt & Miner, P.A. 16 NOWLEN, HOLT & MINER, P.A. CERTIFIED PUBLIC ACCOUNTANTS 2 t 5 FIFTH STREET SURE 200 POST OFFICE 6pX 317 WEST PALM BEACH. FLORIDA 33102.9989 TELEPHONE 11071 859.3080 FAX 11071 835-0628 EVERETT B NOWLEN. CPA I t 930-t 9e41 EDWARD T MOIT. CPA WILLIAM B MWER. CPA ROBERT W HENDRIX. JR .CPA JANET R BARICEVICH. CPA B E WEEKS. CPA KATHLEEN A BENTLEY. CPA KIM MATCHER BEAUMONT. CPA GAIL H. MOPE. CPA MARILVN ROBERTS CPA INDEPENDENT AUDITOR'S REPORT R GREGORr SMITH, CPA MARTHA ANN HERB, CPA ROBERT W NELMREICM- CPA LAWRENCET VAMGE. CPA iERRrL MORTON JR.CPA N RONALD BENNETT. CPA MEM8ER5 AMERICAN IN$TRUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTAAtTS ACCOUNTMIG FIRMS AS.90CIATED SIC The Honorable Mayor and Village Council Village of Tequesta Tequesta, Florida BELLE GLADE OFFICE 333 S.E. 2rb STREET POST OFFICE BOX 33e BELLE GLADE. FLORIDA 33430-03e! TELEPHONE N071 gee-Sett We have audited the accompanying general purpose financial statements of the Village of Tequesta, Florida, as of and for the year ended September 30, 1988, as listed in the table of contents. These finan- cial statements are the responsibility of the Village's management. Our responsibility is to express an opinion on these financial state- ments based on our audit. We conducted our audit in accordance with generally accepted auditing standards and the standards for financial and compliance audits contained in the "Standards for Audit of Governmental Organizations, Pro rams, Activities and Functions, issued y the U.S. General ccounting 0 ice . ose Stan ar s require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material aspects, the financial position of the Village of Tequesta, Florida, as of September 30, 1988, 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. 17 We have also reviewed the accounting requirements of the bond ordin- ances associated with both the Independent Revenue Bonds, Series 1979 and Water Refunding Revenue Bonds, Series 1985, relating to the bene- fits and application of funds. In our opinion, based on our audit of the general purpose financial statements, the Village has complied with such provisions. It should be noted that information obtained on the basis of our audit of the general purpose financial statements would not necessarily disclose defaults of a nonaccounting nature. Our audit 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 table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Village of Tequesta, Florida. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. We did not examine the statistical data as set forth in the table of contents and, therefore, express no opinion thereon. `YI,~.Q,~~ I.1.~:Q~- a- M;v,un,-Q. ~l. December 19, 1988 18 GENERAL PURPOSE FINANCIAL STATEMENTS VILLAGE OF TEQUESTA, FLORIDA Combined Balance Sheet - All Fund Types and Account Groups (Continued) September 30, 1988 Assets Governmental Fund Types Debt Capital General Service Projects Cash and cash equivalents $ 157,553 $ 9,147 $122,165 Cash with fiscal agent 1,260 Investments 855,000 100,000 Receivables Accounts (net of allowance for uncollectibles) 5,453 1,160 Accrued interest 9,087 2,773 Due from other funds 16,608 Due from other governments 547 Inventories of supplies 735 Unamortized debt issue costs Restricted assets Cash and cash equivalents ..._ z _...,:.. noes ments Accrued interest Fixed assets Amount available in debt service fund Amount to be provided for retirement of general long-term debt Total assets $1,044,983 $113,180 $123,325 19 Proprietary Fund Type Enterprise $ 535,605 1,273,000 146, 907 9, 872 17,055 68, 554 Fiduciary Fund Type., Agency Account Grou s General Genera Fixed Long-Term Assets Debt Totals (Memorandum Only) $ $ $ ~ 824, 470 ~, 1,260 ~ 2,304,330 153,520 21, 732 16,608 547 1 7, 790 68, 554 120,441 ~ 120 441 63 ~, 1, 012, 263 2,318 2,318 4,297,600 1,015,561 5,313,161 111,920 111,920 674,906 674,906 $7,483,615 $76,330 $1,015,561 $786,826 $10,643,820 See notes to financial statements. 20 VILLAGE OF TEQUESTA, FLORIDA Combined Balance Sheet - All Fund Types and Account Groups (Continued) September 30, 1988 Liabilities and fund equity Liabilities Accounts payable Accrued liabilities Matured interest payable Matured principal payable Payable from restricted assets Deposits Due to other funds Deferred revenue Deferred compensation payable Improvement revenue bonds payable Water refunding revenue bonds payable Unamortized debt discount Other liabilities Total liabilities Fund equity Investment in general fixed assets Contributed capital Retained earnings Reserved for revenue bond debt service Unreserved Fund balances Reserved for inventory of supplies Reserved for debt service Reserved for recreation and parks Reserved for encumbrances Unreserved Designated for subsequent year's expenditures Designated for debt service Undesignated Total fund equity Governmental Fund Types Debt Capita. General Service Projec, $ 45,698 $ $ 6, 4' 55, 052 1, 260 38, 509 139,259 1,260 6,4! 735 86,655 10, 108 7,402 27,636 25,265 859,843 116,81 905,724 111,920 116,82 Total liabilities and fund equity $1,044,983 $113,180 $123,32 21 Proprietary Fiduciary Fund Type Fund Type Account Grou s Genera Genera Fixed Long-Term Enterprise Agency Assets Debt $ 9,229 $ $ $ 9,290 51,826 135,579 16,608 76,330 735,000 1,290,000 (31,374) 5,113 1,434,445 76,330 786,826 2,123,726 973,407 2,952,037 1,015,561 Totals (Memorandum Only) $ 61 , 426 116, 168 1, 260 135,579 16, 608 38,509 76, 330 735•, 000 1,290,000 (31,374) 5,113 2,444,619 1,015,561 2, 123, 726 973,407 2,952,037 735 86,655 10, 108 7,402 27, 636 25,265 976,669 6,049,170 1,015,561 _ $7,483,615 $76,330 $1,015,561 $786,826 See notes to financial statements. 22 8,199,201 $10,643,820 VILLAGE OF TSQUESTA, FLORIDA Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - All Governmental Fund Types For the Fiscal Year Ended September 30, 1988 General Revenues Taxes $2,143,933 Licenses and permits 170,834 Intergovernmental revenues 493,644 Charges for services 19,562 Fines and forfeits 53,034 Miscellaneous revenues 67,508 Intragovernmental services 71,400 Total revenues . Expenditures Current General government 429,632 Public safety 1,435,360 Physical environment 308,215 Transportation 269,873 Human services 502 Culture/recreation 111,466 Debt service Principal retirement Interest and fiscal charges Total expenditures ~~.~5 Excess of revenues over (under) expenditures 464,867 Other financing sources (uses) Operating transfers in Operating transfers out (220,000) Total other financing sources (uses) , ) Excess of revenues and other sources over (under) expenditures and other uses 244,867 Fund balances, October 1, 1987 660,857 Fund balances, September 30, 1988 $ 905,724 23 Governmental Fund Types Totals Debt Capftal (Memorandum Service Projects Only) $ $ $2, 143, 933 170, 834 74,447 568,091 19, 562 53,034 12,894 14,745 95,147 71,400 79,502 509,134 1,435,360 308,215 193,000 462,873 502 111,466 25,000 25,000 64,350 64,350 89,350 272,502 ,9 ,9 (76,456) (183,310) 205,101 70,000 200,000 270,000 (220,000) ~, bib ~o~b (6,456) 16,690 255,101 118,376 100,136 879,369 $111,920 $116,826 $1,134,470 See notes to financial statements. 24 VILLAGE OF TEQUESTA, FLORIDA Combined Statement of Revenues, 8xpenditures, and Changes in Fund Balances Budget and Actual General and Special Revenue Fund Types For the Fiscal Year Ended September 30, 1988 Revenues Taxes Licenses and permits Intergovernmental revenues Charges for services Fines and forfeits Miscellaneous revenues Inteagovernmental services Total revenues Expenditures Current General government Public safetx Physical environment Transportation Human services Culture/recreation Debt service Principal retirement Interest and fiscal changes Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses) Loan proceeds Operating transfers in Operating transfers out General Fund ari c - Favorable Budget Actual (Unfavorable $2,063,478 $2,143,933 $ 80,455 103,000 170,834 67,834 461,214 493,644 32,430 8,650 19,562 10,912 40,350 53,034 12,684 26, 100 67, 508 41, 408 71,400 71,400 2,774,192 3,019,915 245,723 459,419 1,474,909 318,000 294,606 6,380 151,435 429,632 1, 435, 360 308,215 269,873 502 111,466 29,787 39,549 9, 785 24,733 5, 878 39,969 2,704,749 2,555,048 69,443 464,867 (233,000) (220,000) Total other financing sources (uses) (233,000) (220,000) Excess of revenues and other sources over (under) expenditures and other uses $ (163,557) 244,867 Fund balances, October 1, 1987 Fund balances, September 30, 1988 660,857 25 $ 905,724 149,701 395,424 13,000 13,000 $408,424 ~~ Debt Service Fund ariance - Favorable Budget Actual (Unfavorable) $ $ $ Capital Proiects Fund variance - Favorable Budget Actual (Unfavorable) $ $ $ 74,447 74,447 5,000 12,894 7,894 14,745 14,745 5,000 12,894 7,894 ____-.~ 89,192 89,192 80,000 79,502 498 667,200 193,000 474,200 68,200 25,000 43,200 109,490 64,350 45,140 177,690 89,350 88,340 747,200 272,502 474,698 (172,690) (76,456) 96,234 (747,200) (183,310) 563,890 648,000 (648,000) 83,000 70,000 (13,000) 200,000 200,000 83,000 70,000 (13,000) 848,000 200,000 (648,000) $ (89,690) (6,456) $ 83,234 ~~ $100,800 ~~ 16,690 $(84,110) ~~~ 118,376 100,136 $111,920 $116,826 (Continued) 26 Totals (Memorandum Only) ariance - Favorable Budget Actual (Unfavorable) $2,063,478 $2,143,933 $ 80,455 103,000 170,834 67,834 461,214 568,091 106,877 8,650 19,562 10,912 40,350 53,034 12,684 31,100 95,147 64,047 71,400 71,400 2,779,192 3,122,001 342,809 539,419 509,134 30,285 1,474,909 1,435,360 39,549 318,000 308,215 9,785 961,806 462,873 498,933 6, 380 502 5, 878 151,435 111,466 39,969 68,200 25,000 43,200 109,490 64,350 45,140 3,629,639 2,916,900 712,739 (850,447) 205,101 1,055,548 648, 000 283,000 (233,000) 270, 000 (220,000) (648,000) (13, 000 ) 13,000 • 698,000 $ (152,447) 50,000 255,101 879,369 $1,134,470 (648,000) $ 407,548 See notes to financial statements. 27 THIS PAGE INTENTIONALLY LEFT BLANK VILLAGE OF TEQUESTA, FLORIDA Statement of Revenues, Expenses, and Changes in Retained Earnings - Proprietary Fund Type For the Fiscal Year Ended September 30, 1988 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, beginning of year as previously reported Prior period adjustment - error in amortization of contributed capital Retained earnings as restated, October 1, 1987 Retained earnings, September 30, 1988 See notes to financial statements. Proprietary Fund Type Ent- p se $1,668,127 467,952 227,894 158,437 38, 117 89, 800 84, 252 369,990 965 ~, ~'~b~f 230,720 166, 803 (126,173) 40,630 271,350 (50,000) 221,350 3,719,214 (15,120) 3,704,094 $3,925,444 28 VILLAGE OF TEQUESTA, FLORIDA Statement of Changes in Financial Position - Proprietary Fund Type For the Fiscal Year Ended September 30, 1988 Sources of working capital Operations Net income Items not requiring working capital Depreciation Amortization of debt discount and issue cysts Gain on disposal of equipment Working capital provided by operations Contributions Increase in current liabilities payable from restricted assets Increase in other liabilities Total sources of working capital Uses of working capital Increase in restricted assets Acquisition of property, plant and equipment Adjustment for plan year amortization of contributed capital Decrease in long-term debt Total uses of working capital Net increase in working capital Elements of net increase (decrease) in working capital Cash Investments Accounts receivable Accrued interest receivable Accounts payable and accrued liabilities Due to other funds Net increase in working capital See notes to financial statements. Proprietary Fund Type 8nterp se $221, 350 369, 990 i3, 118 (2,271) 602, 187 158, 546 7, 954 3,277 ~~ 420, 333 149, 629 15, 120 75,000 ~~~ $111,882 $297,684 (172,000) (4, 382 ) (2,250) (144) (7,026) $111,882 29 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1988 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Consideration of Definition of the Reporting Entit This report includes all of the funds and account groups of the Village. It also includes all activities considered to be part of (controlled by or dependent on) the Village, as determined by the application of the criteria set forth in "Defining the Governmental Reporting Entity - NCGA Statement 3." In accordance with NCGA 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 three generic fund types and three broad fund categories as follows: 30 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1988 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). 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. 31 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1988 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 fund balance (net current assets) is considered a measure of "available spendable resources." Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable re- sources" during a period. Fixed assets used in governmental fund type operations (general fixed assets) are accounted for in the General Fixed Assets Account Group, rather than in governmental funds. Public domain ("infrastructure") general fixed assets consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks,, drainage systems, and lighting systems, are not capital- ized. No depreciation has been provided on general fixed assets. All fixed assets are valued at historical cost or estimated histori- cal cost if actual historical cost is not available. Donated fixed assets are valued at their estimated fair value on the date donated. Long-term liabilities expected to be financed from governmental funds are accounted for in the General Long-Term Debt Account Group, not in the governmental funds. 32 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1988 NOTE. 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Fixed Assets and Low-Term Liabilities (Continued) 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. Depreciation of all exhaustible fixed assets used by the proprietary fund is charged as expense against the operations. Accumulated depreciation is reported on the proprietary fund balance sheet. Depreciation has been provided over the estimated useful lives using the straight-line method. The estimated useful lives are as follows: Buildings 40 years Improvements 20 - 25 years Equipment 4 - 10 years 33 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 34, 1988 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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. 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. 34 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1988 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 balance until expended or accrued Encumbrances at September 30, 1988 respectively. any, as a reservation of fund as a liability of the fund. and 1987 were $7,402 and $152, Revenue Recognition Ad Valorem Taxes Ad valorem taxes are assessed as of January 1 and billed the following October. They are due and payable on November 1 of each year or as soon thereafter as the assessment roll is certified and delivered to the Tax Collector. These taxes are collected by the County and remitted to the Village. Revenue is recognized at the time monies are received from the County. All unpaid taxes become delinquent on April 1 following the year in which they are assessed. Discounts are allowed for early payment at the rate of 4$ in the month of November, 3$ in the month of December, 2$ in the month of January and 1$ in the month of February. The taxes paid in March are without dis- count. At September 30, unpaid delinquent taxes, if any, are reflected as a receivable on the balance sheet and are fully reserved. The Village does not accrue property tax revenues since the collection of these taxes coincides with the fiscal year in which levied, and since the Village consistently has no material uncollected property taxes at year end. 35 VILLAGE OF TSQUESTA, FLORIDA Notes to Financial Statements September 30, 1988 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 or items within a department must be approved by the Village Council. However, in order to make the most effective use of the budgetary process, it is the policy of the Village to make as few budget adjustments as possible. Appropri- ations are legally controlled at the departmental level within funds and expenditures may not legally exceed budgeted appropriations at that level. During the year, the Village did not make any supplemental appropria- tion increases but did make several administrative changes on the departmental level. 36 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1988 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Budgets and Budgetary Accounti~ (Continued) 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, money market accounts, U.S. treasury obligations and funds held with the state investment pool are stated at cost or amortized cost, which approxi- mates market. Assets of Internal Revenue Code Section 457 Deferred Compensation Plan are reported at market value. 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, 1988 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. NOTE 2 - CASH AND INVESTMENTS Cash At year end,. the carrying $.946.,11. Cash consists of non-iri'~erest bearing accoun cash. These funds were insurance or by collateral in the Village's name. Investments amount of the Village's deposits ~. unrestricted and restricted funds held in is funds held by fiscal agent and petty entirely covered by federal depository held by the Village's bank or its agent, `Imvestmet~ iincluding restricted investments) consist of interest- bearing bank accounts, funds held with the state investment pool,; obligations of the United States government and amounts held by the Village's agent in e~deferred compensation plan. Interest-bearing bank accounts and funds held with the state investment pool were entirely covered by.~'ederal depository insurance or by a collateral pool pledged to the ~t,~~ Treasurer by financial institu~t,~q,~s which comply with the r~qui cements of "~'l+d~rit3~ `-Statute S.. ~hd ~ have been designated as a qualified public depository by the 5lrate treasurer. Obligations of the United States government are guaranteed and held by a qualified public depository. The Village is obligated by its Water Refunding Revenue Bond issue, Series 1985, to purchase U.S. Treasury Obligations. The bonds are recorded net of unamortized discount of $19, 737. 38 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1988 NOTE 2 - CASH AND INVESTMENTS (Continued) Investments (Continued) The Village's Deferred Compensation plan has funds held by ICMA Retirement Corporation. The plan has been approved by the IRS and complies fully with all Federal regulations. It is sponsored by the Government Finance Officers Association. Funds withheld from employees are invested in a Guaranteed 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. Funds are invested at the discretion of individual plan participants. The Village's investments are categorized as either (1) insured or registered or for which the securities are held by the Village or its agent in the Village's name, (2) uninsured and unregistered for which the securities are held by the broker's or dealer's trust department or agent in the Village's name, or (3) uninsured and unregistered for which the securities are held by the broker or dealer, or by its trust department or agent but not in the Village's name. Cate ories Carrying Market Amount Value Interest-bearing bank accounts Investment in deferred compensation plan Obligations of United States government Investment in state invest- ment pool $ 810,000 $ $ $ 810,000 $ 810,000 76, 330 76, 330 76, 330 330,263 330,263 312,830 $1,140,263 $76,330 $ 1,216,593 1,199,160 2,100,000 2,100,000 $3,316,593 $3,299,160 39 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1988 NOTE 2 - CASH AND INVESTMENTS (Continued) Investments (Continued) Florida statutes authorize the Village to invest in the Local Govern- ment Surplus Funds Trust Fund administered by the State Treasurer; negotiable direct- obligations of or obligations unconditionally guaranteed by the U.S. Government; interest-bearing time deposits or savings accounts in financial institutions located in Florida and organized under Federal or Florida laws; obligations of the Federal Farm Credit Banks, the Federal Home Loan Mortgage Corporation, the Federal Aome Loan bank or its district banks, or obligations guaran- teed by the Government National Mortgage Association and obligations of the Federal National Mortgage Association. NOTE 3 - RESTRICTED ASSETS Restricted assets consist of cash on deposit, interest-bearing time deposits and investments in U.S. Obligations in the following accounts: Accrued Interest Cash Investments Receivable Meter Deposit Accounts $ 26,037 $ 250,000 $ 415 Capital Improvement Accounts 25, 090 160, 000 1985 Bond Accounts Sinking Account _ 4, 557 50.4_ ~onc~~ Amo t zat of n _~ Account 63, 166 330, 263 ~ eserve ccoun ~~'r";~57U , 1, 399 Renewal and Replace- ment Account 21 $120,441 $1,012,263 Total $ 276,452 185, 090 5, 061 393, 429 274,969 21 $2,318 $1,135,022 40 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1988 NOTE 4 - ACCOUNTS RECEIVABLE - ENTERPRISE FUND Accounts receivable of $146,907 are stated net of a $2,000 allowance for doubtful accounts and consist of billed revenues totaling $120,044 and unbilled revenues totaling $28,813. NOTE 5 - COMPONENTS OF FIXED ASSETS A summary of changes in general fixed assets follows: Land Buildings Equipment Improvements other than buildings Total Balance October 1, 1987 $ 49, 728 214,832 467, 576 170,622 $902,758 Additions 79,501 105, 139 4;64 $189,244 Deletions 32,265 44,176 $76,441 Balance September 30, 1988 $ 49, 728 294, 333 540, 450 131,050 $1,015,561 The components of fixed assets at September 30, 1988 are summarized as follows: Enterprise Fund Land Buildings Improvements other than buildings Machinery and equipment Accumulated depreciation Total $ 92,042 388,591 6, 245, 689 300,524 7,026,846 2,729,246 $4,297,600 41 General Fixed Assets Account Group $ 49, 728 294, 333 131,050 540,450 1, 015, 561 $1,015,561 Total $ 141,770 682, 924 6,376,739 840,974 8,042,407 2,729,246 $5,313,161 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1988 NOTE 6 - 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, 1988 was $1,099,945. All Village full-time employees are eligible to participate in the System as authorized by Chapter 121 of the Florida Statutes. The Florida Retirement System has four classes of membership. Village employees belong to two of the four classes, the regular class consisting of administrative, operations and clerical employees, and the special risk class consisting of law enforcement officers. Employees who retire at or after age 62 with 10 years of credited service are entitled to a retirement benefit, payable monthly for life, equal to 1.60 to 1.68$ (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 5 5 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, 1988 were $144,377 (General Fund $123,783, Enterprise Fund $20,594). The Village contribution rates as of September 30, 1988 were based on 13.14$ of covered payroll 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, 1988 for the System as a whole, determined through an actuarial valuation per- formed as of that date, was $23.4 billion. The System's net assets available for benefits on that date (valued at market) were $14.5 billion, leaving an unfunded pension benefit obligation of $8.9 billion. 42 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1988 NOTE 6 - 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, 1988 comprehensive annual financial report. NOTE 7 - 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. All amounts 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 8 - COMPENSATED ANNUAL LEAVE AND SICR 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, 1988, the total liability for compen- sated absences was $111,093. The current liability in the General Fund was $51,748. 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, 1988, the long-term amount was $51,826. The liability recorded by the Enterprise Fund was $7,519. 43 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1988 NOTE 9 - LEASE COMMITMENTS The Village presently has no material lease commitments. In addi- tion, the Village has no commitments under lease purchase or similar contractual arrangements. NOTE 10 - 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 11 - PROJECTS ENTERED INTO WITS OTBER GOVERNMENTAL UNITS On August 15, 1984, the Village entered into an interlocal agreement between Palm Beach County and various other municipalities for ser- vices to be rendered by the Palm Beach County Fire Rescue Department to said municipalities for a fee. For the year ended September 30, 1988 fire protection and emergency medical service expense was $372,786. NOTE 12 - 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 interest on, and reserve for, the outstanding water refunding revenue bonds. 44 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1988 NOTE 12 - 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 Revenue Account Operation and Maintenance Account Sinking Account Bond Amortization Account Reserve Account Renewal and Replacement Account Purpose To collect the entire gross revenues derived from the system, except invest- ment earnings. To pay fully accrued operating expenses. To accumulate sufficient funds to meet annual debt service requirements through transfers from the Revenue Account. Established within the Sinking Account to meet principal payment on the debt. To accumulate funds for payment of principal and interest only if funds in the Sinking Account are insufficient. To accumulate funds for the purpose of funding the cost of extensions, addi- tions to, enlargements and replacement of capital assets of the system and emergency repairs thereto. 45 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1988 NOTE 12 - LONG-TERM DEBT (Continued) Water Fund: (Continued) The annual requirements to amortize the debt are as follows: Fiscal Year Ending September 30 1989 1990 1991 1992 1993 1994 1995 1996 1997 Principal $ 40, 000 80,000 90,000 95,000 105,000 185,000 275,000 300,000 120,000 $1,290,000 Interest $ 54,078 103, 805 97,667 90, 749 83,005 74, 199 55, 143 30, 592 5,340 $ 594,578 Total $ 94,078 183, 805 187,667 185, 749 188,005 259, 199 330, 143 330, 592 125,340 $1,884,578 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 7-5/88, 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 Lon -Term Debt: This debt consists of Improvement Revenue Bonds Series , ated October 1, 1979, in the amount of ,$910,000 with interest rates ranging from 8.30$ to 8.508. At September 30, 1988, $735,000 of this issue, which consists of term and serial bonds, were outstanding. The guaranteed entitlement portion of state revenue sharing trust funds, public service utilities taxes, fran- chise fees and occupational license taxes have been pledged. The bonds will be repaid through the Debt Service Fund. 46 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1988 NOTE 12 - LONG-TERM DEBT (Continued) General Long-Term Debt: (Continued) Annual requirements to amortize this debt are as follows: Coupon Total Rate Principal Interest Payments 1989 October 1 8.30$ $ 25,000 $ 61,655 $ 86,655 1990 October 1 8.30$ 30,000 59,580 89,580 1991 October 1 8.30$ 30,000 57,090 87,090 1992 October 1 8.40$ 54,600 54,600 1993 October 1 8.40$ 54,600 54,600 1994 October 1 8.40$ 54,600 54,600 1995 October 1 8.40$ 54,600 54,600 1996 October 1 8.40$ 54,600 54,600 1997 October 1 8.40$ 54, 600 54, 600 1998 October 1 8.40$ 54,600 54,600 1999 October 1 8.40$ 54,600 54,600 2000 October 1 8.40$ 54,600 54,600 2001 October 1 8.40$ 54,600 54,600 2002 October 1 8.40$ 54,600 54,600 2003 October 1 8.40$ 54,600 54,600 2004 October 1 8.40$ 650,000 54,600 704,600 Totals $735,000 $ 888,125 $1,623,,125 Monies will be deposited into a bond amortization account for the retirement of the 2004 term bonds on October 1 in such years and such amounts as follows: Year Amount Year Amount 1992 $ 35,000 1999 $ 55,000 1993 35,000 2000 55,000 1994 40,000 2001 60,000 1995 40,000 2002 65,000 1996 45,000 2003 70,000 1997 45,000 2004 55,000 1998 50,000 47 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1988 NOTE 12 - LONG-TERM DEBT (Continued) General Long-Term Debt: (Continued) The annual requirements to amortize all outstanding debt including interest payments of $1,482,703 as of September 30, 1988 are as follows: Fiscal Year Ending Compensated September 30 Absences 1989 $ 1990 1991 1992 1993 1994 1995 1996 1997 ' 1998 1999 2000 2001 2002 2003 2004 Various 51,826 $51,826 Improvement Water Revenue Revenue Total $ 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 94,078 183,805 187,667 185, 749 188, 005 259, 199 330, 143 330, 592 125, 340 $ 180, 733 273, 385 274, 757 240, 349 242, 605 313,799 384, 743 385,192 179,940 54,600 54,600 54, 600 54,600 54, 600 54,600 704, 600 51,826 $1,623,125 $1,884,578 $3,559,529 Annual maturities of long-term compensated absences cannot be reason- ably determined. 48 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1988 NOTE 12 - LONG-TERM DEBT (Continued) Chan es in Lon -Term Debt: Transactions for the Village for the year en a Septem er , are summarized as follows: Long-term debt at October 1, 1987 Plus: Addition to compensated absences Less: Bonds retired Long-term debt at September 30, 1988 Interest Expense Improvement Water Compensated Revenue Revenue Absences Bonds Bondi Total $22, 508 $760, 000 $1, 365, 000 $2, 147, 508 29,318 29,318 25,000 75,000 100,000. $51,826 $735,000 $1,290,000 $2,076,826 Interest expense on long-term debt for the fiscal year ended Septem- ber 30, 1988 totaled $175,791 (general long-term debt - $63,755; Enterprise Fund - $112,036). NOTE 13 - 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, 1988 $8,461,129 of bonds outstanding, including interest, are considered defeased. 49 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1987 NOTE 14 - INTERFUND RECEIVABLES AND PAYABLES Individual fund interfund receivables and payables at September 30, 1988 are as follows: Fund General Fund Enterprise Fund NOTE 15 - INTERFUND ADMINISTRATIVE FEE Interfund Interfund Receivables Payables $16,608 16,608 $16, 608 $16,608 During the year ended September 30, 1988, the Enterprise Fund remitted $71,400 to the General Fund for administrative management fees. This amount is reflected as intragovernmental services revenue in the General Fund and as contractual services operating expenses in the Enterprise Fund. NOTE 16 - CONTRIBUTED CAPITAL - ENTERPRISE FUND Contributed capital consists of the following: Contributions from capital improvement charges $1,323,039 Contributions from developers 800,687 $2,123,726 For the year ended September 30, 1988, contributions from capital improvement charges totaled $140,426 and contributions from developers totaled $18,120. 50 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1988 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. NOTE 18 - PRIOR PERIOD ADJUSTMENTS Retained earnings of September 30, 1987 have been restated to reflect an adjustment for amortization of contributed capital in the amount of $15, 120, recorded in 1985. The error had no effect on net income for 1988. 51 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Revenues - Budget and Actual For the. Fiscal Year Ended September 30, 1988 Taxes Current ad valorem taxes Delinquent ad valorem taxes Franchise fees Utility service taxes Total taxes 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 Comp. planning assistance Total intergovernmental revenues Charges for services Zoning fees Map sales Certification, copying, record search Building inspection service Municipal police academy Tennis lights Public works - service Total charges for services Budget $1,470,228 1,000 238, 750 353,500 ~ ~ 45, 000 55,000 3,000 16 ,0 15, 768 129,246 7,200 1, 500 80, 000 21, 300 196, 200 10,000 461,214 1, 500 500 850 2,00.0 1, 300 2, 500 5 52 Variance - Favorable Actual (Unfavorable) $1, 496, 727 1, 468 246, 658 399,080 $ 26, 499 468 7, 908 45,580 !r, 1 ~ J, J JJ 51, 545 109, 091 10,198 -~70; 8~ 16,019 129,228 8, 083 18, 054 94, 848 24, 967 197, 123 5,322 493,644 12, 450 904 880 2, 450 700 2,084 94 I J , JV~+ v.+,:.,~ 6, 545 54,091 7,198 6 251 (18) 883 16,554 14, 848 3,667 923 (4,678) 32,430 10, 950 404 30 450 (600) (416) 94 ~~ VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Revenues - Budget and Actual For the Fiscal Year Ended September 30, 1988 Fines and forfeits Court f fines Parking tickets Total fines and forfeits Budget $ 40,000 350 Actual $ 52,555 479 Miscellaneous revenues Interest Other Abandoned bicycle sales Total miscellaneous revenues intragovernmental services Administrative management - water fund Total revenues 25, 000 1, 000 100 2 , 57,042 10,466 __~~ 71,400 71,400 $2,774,192 $3,019,915 53 Variance - Favorable (Unfavorable $ 12, 555 129 ~~$~ 32, 042 9,466 (100) ~~~ $245,723 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1988 General government Legislative Life and health insurance Travel and per diem Other charges Books, publications and dues Total legislative Executive Village manager's salary F.I.C.A. Retirement Life and health insurance Deferred compensation plan Worker's compensation insurance Travel and per diem Other charges Office supplies Books, publications, dues Repair and mantenance - office machines Capital outlay Machinery and equipment Total executive Variance - Favorable Budget Actual (Unfavorable) $ 2, 250 $ 1, 720 $ 530 10,450 10,193 257 985 983 2 2,153 2,151 2 15,838 15,047 791 93, 085 93, 1351 ( 50 ) 6,925 6,924 1 12, 500 1 1, 437 1, 063 10,560 6,737 3,823 2, 485 2, 453 31 1, 260 180 1, 080 7,520 7,285 235 600 159 441 2,525 2,515 10 1,000 657 343 2, 150 2, 146 4 750 408 342 141,360 134x036 7,324 Financial and administrative Finance director's and bookkeeper's salary F.I.C.A. Retirement Life and health insurance Worker's compensation insurance Codif ication 56,655 56,179 476 4, 210 4, 206 4 7, 440 7, 436 4 7,400 6,988 412 695 180 515 3, 350 3, 347 3 54 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1988 General government (continued) Financial and administrative (continued) Accounting and auditing Other contractual services Travel and per diem Other charges Office supplies Books, publications, dues Repairs and maintenance - office machines Capital outlay Machinery and equipment Variance Favorable- Budget Actual (Unfavorable) $ 19,035 $ 19,030 $ 5 3,665 3,664 1 1, 400 1, 380 20 8,000 7,773 227 4,800 4,601 199 250 165 85 1, 200 1, 1 19 81 5,451 5,451 Total financial and administrative Legal counsel Legal services Total legal counsel Planning and zoning Planning service Comprehensive plan revision Professional services Postage Printing and binding Office supplies Total planning and zoning 123,551 121,519 51,665 51,665 6, 515 12, 120 5, 200 300 2,450 300 26,885 55 2,032 51,665 51,665 2,394 12, 120 5,200 14 2,405 101 22,234 4, 121 286 45 199 4,651 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental-Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1988 General government (continued) Budget Actual Variance - Favorable (Unfavorable ) Other general government Employee recognition program 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 Total other general government Total general government $ 2, 500 $ 1 , 088 $ 1, 412 600 71 529 4, 000 3, 506 494 2,500 2,500 S, 000 4, 758 242 9,000 7,136 1,864 1 1, 400 1 1, 400 6,000 5,877 123 16, 700 13, 754 2, 946 1 1, 945 1 1, 613 332 300 65 235 3,735 3,270 465 4,295 4,285 10 1, 900 1, 892 8 3, 200 3, 200 850 850 16,195 12,366 3,829 ~_ 100,120 85,131 14,989 459,419 429,632 29,787 Public safety Police department Salaries Overtime Special pay F.I.C.A. Retirement Life and health insurance 51 1, 325 527, 459° ( 16, 134 ) 31,900 25,613/ 6,287 20, 000 20, 000 40, 760 41, 525 ( 765 ) 82,556 77,871 4,685 66,670 6 ,159 3,511 56 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1988 Variance - Favorable Budget Actual (Unfavorable) Public safety (continued) Police department (continued) Worker's compensation insurance $ 22,337 $ 18,561 $ 3,776 Travel and per d iem 7, 375 4, 817 2, 558 Communication services 7,459 6,423 1,036 Leases 450 408 42 Insurance 31,940 28,768 3,172 Repairs and maintenance - cars 14,435 14,315 120 Repairs and maintenance - office equipment 3,113 2,801 312 Repairs and maintenance - radio communications 3,410 3,385 25 Repairs and maintenance - other 1,040 973 67 Printing and binding 650 515 135 Other charges 5,495 2,916 2,579 Personnel training 6,581 4,934 1,647 Office supplies 3,415 2,576 839 Gasoline and oil 22,000 18,466 3,534 Uniforms and equipment 11,870 11,371 499 Books, publications, dues 741 494 247 Capital outlay Machinery and equipment 57,851 45,693 12,158 Total police department 953,373 923,043 30,330 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 77,015 76,639 376 F.I.C.A. 5,750 5,715 35 Retirement 10,175 10,129 46 Life and health insurance 10,950 10,673 277 Worker's compensation insurance 200 183 17 Code enforcement service 9,230 8,798 432 57 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1988 Variance - Favorable Budget Actual (Unfavorable) Public safety (continued) Protective inspections (continued) Travel and per diem $ 3,280 $ 3,277 $ 3 Communication services 2,600 2,505 95 Insurance 1,500 1,497 3 Repairs and maintenance - office machines 2,050 2,027 23 Repair & maintenance - vehicle 465 396 69 Printing and binding 1,050 910 140 Other charges 4,450 752 3,698 Office supplies 2,750 2,731 19 Gasoline and oil 300 191 109 Books, publications, dues 1,035 1,002 33 Capital outlay Machinery and equipment 9,800 9,180 620 Total protective inspections ~ 42,6 1 6,6 5,9 5 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 Total public safety Physical environment Contractual services - garbage and trash Total physical environment 500 400 100 5,000 2,526 2,474 500 500 6,000 2,926 3,074 372,786 372,786 372,786 372,786 1,474,909 1,435,360 39,549 318,000 308,215 9,785 318,0 0 308, 5 9,785 Transportation Road and street facilities Salaries Overtime F.I.C.A. 91, 000 94, 70 ] ( 3, 701 ) 305 (29) 334 6, 800 6, 751 49 58 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1988 Variance - Favorable Budget Actual (Unfavorable) Transportation (continued) Road and street facilities (continued) Retirement $ 12,025 $ 11,749 $ 276 Life and health insurance 13,800 13,798 2 Worker's compensation insurance 4,500 4,404 86 Engineering services 19,500 19,445 55 Travel and per diem 1,400 1,079 321 Communication services 750 730 20 Street lights 19,200 18,456 744 Utility service 8,300 8,271 29 Insurance 22,725 22,722 3 Repairs and maintenance - truck and tractor 1,500 882 618 Repairs and maintenance - drainage 10, 200 3, 125 7, 075 Repairs and maintenance - general 33,000 32,709 291 Other charges 150 146 4 Gasoline and oil - truck and tractor 1, 350 1, 049 301 Small tools 450 436 14 Traffic signs 2, 200 2, 036 164 Road materials and supplies 2,425 1,140 1,285 Uniforms and equipment 800 743 57 Books, publications, dues 150 133 17 Capital outlay Machinery and equipment 13,500 13,319 181 Improvements other than buildings - replacement of Royal Palms 13, 500 12, 078 1, 422 Improvements other than buildings - beautification 15,076 15,076 Total transportation 294,606 269,873 24,733 Human services Health - mosquito control Salaries 1, 200 81 '~ 1, 1 19 F.I.C.A. 90 6 84 59 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1988 Human services (continued) Health - mosquito control (continued) Retirement Repairs and maintenance - equipment Flushing solution Other charges Gasoline and oil Insecticide Operating supplies Variance - Favorable Budget Actual (Unfavorable) $ 170 $ 200 250 45 75 4, 000 350 $ 170 35 250 45 75 4, 000 100 Total human services Culture/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 Insurance Buildings, equipment and grounds repairs and maintenance Fields repairs and maintenance Truck repairs and maintenance Other charges 165 250 6,380 502 5,878 40, 000 37, 689 2, 31 1 200 200 2, 885 2, 674 21 1 5,375 5,161 214 2,325 2,032 293 2, 000 1, 448 552 1, 400 1, 394 6 825 800 25 12, 000 10, 566 1, 434 750 482 268 13, 700 13, 766 ( 66 ) 4, 950 3, 305 1, 645 800 760 40 250 242 8 60 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1988 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 Capital outlay Machinery and equipment Playground park equipment Total culture/recreation Total expenditures Variance - Favorable Budget Actual (Unfavorable) $ 250 $ 203 675 650 1, 200 328 1 3, 000 1 1, 634 100 6,000 5,842 30, 800 9, 750 2,200 151,435 $2,704,749 $ 47 25 872 1, 366 100 158 30, 800 (632) 92 39,969 $149,701 10, 382 2,108 111,466 $2,555,048 61 PROPRIETARY FUND (ENTERPRISE FUND) VILLAGE OF TEQUESTA, FLORIDA Enterprise Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended September 30, 1988 Variance - Favorable Budget Actual (Unfavorable) Purchased water $468,000 $467,952 $ 48 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, publications and dues Total supplies Aeat, light and power Repairs and maintenance $169,800 $168,478 $ 1,322 12,175 11,798 377 22, 300 20, 594 1, 706 31,205 27,024 4,181 600 600 236,080 227,894 ,186 $ 30,550 $ 27,185 $ 3,365 6,600 4,598 2,002 4, 800 4, 740 60 3,600 3,479 121 2, 500 594 1, 906 15,000 13,844 1,156 20, 500 20, 458 42 9,250 9,105 145 1, 750 1, 750 71,400 71,400 2,000 1,284 716 167,95 58,4 9,5 3 $ 5,500 $ 4,685 $ 815 4,200 4,066 134 26, 100 25, 114 986 1, 400 1, 357 43 2, 500 1, 765 735 300 138 162 1,000 992 8 ~`~4 . b~ fi 3 ~~'T ~ 1, $8 3 $ 90,000 $ 89,800 $ 200 $ 85,875 $ 84,252 $ 1,623 62 VILLAGE OF TEQUESTA, FLORIDA Enterprise Fund Comparative Summary of Operations For the Fiscal Years Ended September 30, 1988 and 198,7 Operating revenues Charges for services Operating expenses Purchased Ovate r 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 transfer Operating transfers (out) Net income 1988 1987 $1,668,127 $1,633,794 467,952 466,068 227,894 198,672 158, 437 151 , 357 38,117 28,060 89,800 79,121 84,252 140,223 369, 990 368, 660 965 2,377 1,437,407 1,434,538 230,720 199,256 166, 803 126, 740 (126,173) (132,919) 40,63-0 (6,179) 271,350 193,077 (50,000) (50,000) $ 221,350 $ 143,077 63 VILLAGE OF TEQUESTA, FLORIDA Enterprise Fund Schedule of Restricted Accounts Under Revenue Bond Ordinance For the Fiscal Year Ended September 30, 1988 Sinking Account Balance, October 1, 1987 Cash and investments $(97,746) Unamortized discount on investments Accrued interest receivable 31 (97,715) Increases Transfers from unrestricted accounts 350,010 Investment earnings 2,595 Transfers from restricted accounts 286,778 Total 639,473 Decreases Capital outlay Other debt service costs 1,630 Transfers to other restricted accounts 535,067 Total 536,697 Balance, September 30, 1988 Cash and investments 4,557 Unamortized discount on investments Accrued interest receivable 504 Total $ 5,061 64 Bond Renewal and Amortization Reserve Replacement Account Account Account $281,640 $307,583 $(2,104) (14,378) 3498 267,262 311,081 (2,104) 17,400 2,969 131,525 624,000 131,525 626,969 17,400 15,275 5,358 663,081 5,358 663,081 15,275 4 i 3, 166 273, 570 (1 9, 737) 1,399 $393,429 $274,969 $ 21 65 VILLAGE OF TEQUESTA, FLORIDA Amortization Schedule $1,525,000 Water Refunding Revenue Bonds - Series 1985 September 30, 1988 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, 1988, the outstanding bonds totaled $1,290,000; the payment schedule follows: Due Date Principal Interest Total 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 $1,290,000 $594,578 $1,884,578 66 VILLAGE OF TEQUESTA, FLORIDA Statement of Changes in Assets and Liabilities - Agency Fund For Fiscal Year Ended September 31, 1988 Deferred Balance Compensation October 1, Fund 1987 Additions Deductions Assets Balance September 30, 1988 Investments $46,295 $30,035 $76,330 Liabilities Deferred compensation payable $46,295 $30,035 $76,330 See notes to financial statements. 67 VILLAGE OF TEQUESTA, FLORIDA Schedule of General Fixed Assets By Source September 30, 1988 General fixed assets Land Building and improvements Equipment Improvements other than buildings Total general fixed assets Investment in general fixed assets General Fund revenue Total investment in general fixed assets $ 49,728 294, 333 540,450 131,050 $1,015,561 $1,015,561 $1,015,561 68 VILLAGE OF TEQUESTA, FLORIDA Schedule of General Fixed Assets By Function September 30, 1988 General government Public safety Transportation Human services Culture/recreation Total general fixed assets Allocated to functions Prior year data which cannot be allocated Total general fixed assets Buildings and Total Land Improvements Equipment $ 316,010 $35,000 $207,393 $ 73,617 258,546 14,180 244,366 79, 469 7, 713 71, 756 4, 810 4, 810 123,329 14,728 81,453 27,148 782, 164 49, 728 233,397 $1,015,561 $49,728 310,739 421,697 114,644 $425,383 118,753 $540,450 69 VILLAGE OF TEQUESTA, FLORIDA Schedule of Changes in General Fixed Assets By Function September 30, 1988 Function _~_ General government Public safety Transportation Human services Culture/recreation Prior to allocation by function General General Fixed Assets Fixed Assets October 1, September 30, 1987 Additions Deletions 1988 $210,337 $106,906 $ 1,233 $ 316,010 225,994 54,034 21,482 258,546 11 1, 723 13, 318 45, 572 79, 469 4, 810 4, 810 116,497 14,986 8,154 123,329 669,361 $189,244 $76,441 782,164 233,397 $902,758 233,397 $1,015,561 70 VILLAGE OF TEQUESTA, FLORIDA Amortization Schedule Improvement Revenue Bonds - Series 1979 September 30, 1988 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 S eptember 30, 1988, the outstanding bonds totaled $735,000: Coupon Total Rate Principal Interest Payments 1989 October 1 8.30$ $ 25,000 $ 61,655 $ 86,655 1990 October 1 8.30$ 30,000 59,580 89,580 1991 October 1 8.30$ 30,000 57,090 87,090 1992 October 1 8.40$ 54,600 54,600 1993 October 1 8.40$ 54,600 54,600 1994 October 1 8.40$ 54,600 54,600 1995 October 1 8.40$ 54,600 54,600 1996 October 1 8.408 54,600 54,600 1997 October 1 8.40$ 54,600 54,600 1998 October 1 8.40$ 54,600 54,600 1999 October 1 8.40$ 54,600 54,600 2000 October 1 8.40$ 54,600 54,600 2001 October 1 8.40$ 54,600 54,600 2002 October 1 8.40$ 54,600 54,600 2003 October 1 8.40$ 54,600 54,600 2004 October 1 8.40$ 650,000 54,600 704,600 Totals $735,000 $ 888,125 $1,623,125 71 VILLAGE OF TEQUESTA, FLORIDA Schedule of Investments - All Funds September 30, 1988 Enterprise Fund Bond Amortization Account United States Treasur Obli ations Unamortize nterest aturity Par Value Cost Discount Rate Date $350,000 $328,508 $19,737 7.625$ 2/15/07 Money Market Accounts Interest Amounts Rate Enterprise Fund Retained earnings account General Fund Enterprise fund Meter deposits account Retained earnings account Reserve account Capital improvement account General Fund $ 55, 000 5 5, 000 Various Various State Board of Administration Interest Amounts Rate $250,000 Various 768,000 Various 272,000 Various 160,000 Various 650,000 Various 72 VILLAGE OF TEQUESTA, FLORIDA Schedule of Investments - All Funds September 30, 1988 Certificates of Deposit Interest Maturity Amounts Rate Date Debt Service Fund $100,000 11.000 4/01/90 Enterprise Fund Retained earnings account 150,000 7.00$ 10/13/88 100,000 7.30$ 11/10/88 200,000 8.35$ 3/30/89 General Fund 150,000 7.30$ 11/10/88 73 VILLAGE OF TEQUESTA, FLORIDA Schedule of Insurance September 30, 1988 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 BA0014609-01 $1,000,000 Public Employees Blanket Bond 4135132 $100,000 Workmen's Compensation WC0075436-04 $500,000 Multi-peril Policy SCAMP623045 $1,000,000 Police Professional Liability 88-010-87 $1,000,000 Police Official's and Employee's Liability 731526 $1,000,000 Umbrella Liability XC43329 $1,000,000 Unlawful and Intentional Death Policy (Police Department Personnel, death resulting from an intentional and illegal act) DGA-725328 $50,000 74 VILLAGE OF TEQUESTA, FLORIDA General Revenues by Source (Unaudited) (1) Last Ten Fiscal Years Fiscal Year Ended September 30 Licenses and Taxes (3) Permits 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 1988 2,143,933 170,834 (1) Includes General, Special Revenue, Debt Service Funds and Capital Projects Funds. (2) Includes intragovernmental services. (3) Includes Fire/Emergency Rescue Service. Ad valorem tax millage effective year 1985. Source: Village of Tequesta financial records. 75 Charges for Fines and Intergovernmental Services -_, Forfeits Miscellaneous(2) Total $202, 807 $ 7, 172 $12, 524 $ 35, 556 $ 956 618 237, 467 249, 224 7, 874 8, 1 78 1 1, 891 18, 573 45, 767 124 1 52 , 1, 100, 154 1 200,916 8,200 23,574 , 98,081 , 368, 751 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 1 1, 869 42, 929 151, 640 2, 425 816 421, 385 8, 880 51, 126 123, 140 , 2, 609 005 568,091 19,562 53,034 166,547 , 3,022,001 76 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 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 1988 509,134 1,435,360 462,873 (1) Includes General, Special Revenue, Debt Service and Capital Projects Funds. (2) Includes Fire/Emergency Contract with Palm Beach County year 1985. Source: Village of Tequesta financial records. 77 Culture Physical Human and Debt Environment Services __ Recreation Service ___ Total $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 11,069 82,808 89,088 1,548,791 177,427 8,024 79,719 92,988 1,697,244 183, 591 2, 154 128, 247 9], 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 2,907 111,146 91,215 2,520,768 308,215 502 111,466 89,350 2,916,900 78 VILLAGE OF TEQUESTA, FLORIDA Property Tax Levies and Collections (Unaudited) (1) Last Ten Fiscal Years Fiscal Year Total Current Tax Ended Tax Levy Collections September 30 (1) (1) 1979 $ 387,591 $ 386,889 1980 410,854 407,931 1981 534,655 531,676 1982 569,277 558,068 1983 550,573 540,876 1984 641,179 636,533 1985 1,038,027 1,037,003 1986 1, 129,458 1, 128, 128 1987 1,255,399 1,252,073 1988 1,501,241 1,496, 727 Percent of Percent Outstanding Delinquent of Levy Delinquent Taxes to Collected Taxes Tax Levy 99.8 $ 702 .2 99.3 2,923 .7 99.4 2,979 .6 98.0 1 1, 209 2.0 98. 2 9, 697 1 . 8 99.3 4,646 .7 99. 9 1, 024 . 1 99.9 1, 330 . 1 99. 7 3, 326 . 3 99.7 4,514 .3 (1) Includes discounts taken by property taxpayers. Source: Palm Beach County Tax Collector's office. 79 VILLAGE OF TEQUESTA, FLORIDA Taxable Value and Just Value of Taxable Property (Unaudited) Last Ten Fiscal Years Fiscal Year Ended September 30 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 Real Pro ert Taxab e Value Just Value $ 96,414,986 108,755,676 146,062,451 200, 770, 160 199,394,093 206, 001, 538 219,001,538 233,658,151 257,766,850 262,373,925 $106,896,714 118,734,404 212,663,476 237,918,493 243,749,997 262,247,858 275,901,415 297,370,052 324,296,888 329,524,860 Source: Palm Beach County Property Appraiser's office. 80 Personal Pro ert Total Taxa a Just Taxable Just Value Value Value Value $ 7,218,482 8, 036, 976 8,576,046 9, 434, 287 10,410,095 1 1, 333, 640 10,902,190 10,812,334 1 1, 547, 658 12,052,258 $10,918,206 1 1, 774, 601 12,847,602 9,856,038 10, 943, 31 1 11,916,171 11,562,981 11,562,008 12,241,396 12,977,252 $103,633,468 1 16, 792, 652 154,638,497 210,204,447 209,804,188 218,153,678 229,903,728 244,470,485 269,314,508 274,426,183 $117,814,920 130,509,005 225, 51 1, 078 247, 774, 531 254,693,308 274, 164, 029 287,464,396 308,932,060 336,718,284 342, 502, 1 12 Ratio Taxa a Va ue To Just Value 88$ 89$ 69$ 85$ 82$ 80$ 80$ 79$ 80$ 80$ 81 VILLAGE OF TEQUESTA, FLORIDA Property Tax Rates - All Overlapping Governments (Unaudited) (Per $1,000 of Assessed Value) Last Ten Fiscal Years Fiscal Year County Ended General School County September 30 Fund County Board Library 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 X985 4.9200 4.1836 7.1720 .3525 1986 5.0867 4.5271 7.2280 .3428 1987 5.3126 4.6190 7.5950 .3951 1988 5.7510 4.7862 8.1580 .9075 (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. 82 South Florida Florida Jupiter Naviga- Water Jupiter Fire Palm Beach tional Children Management Inlet District Junior Inland Service District District No. 1 College District Council Total .3970 .1950 1.7610 21.1071 .4420 .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 .4970 .1979 (2) .0670 .0923 20.4569 83 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 1979 3,842 $103,633,468 1980 3,685 116,792,652 1981 3,750 154,638,497 1982 3,828 210,204,447 1983 3,810 209,804,188 1984 3,870 218,153,678 1985 3,928 229,903,728 1986 4,077 244,470,485 1987 4,141 269,314,508 1988 4,448 274,426,183 * Source: Palm Beach County Planning Board, University of Florida Estimates and Federal Census, and Village Building Department 84 Debt Ratio of Net Gross Service Net Bonded Debt Net Bonded Bonded Monies Bonded to Assessed Debt Debt Available Debt Value Per Capita $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. .23 154.94 735,000 111,920 623,080 .22 140.08 85 VILLAGE OF TEQUESTA, FLORIDA Legal Debt Margin (Unaudited) September 30, 1988 The Village of Tequesta, Florida has no legal debt margin. 86 VILLAGE OF TEQUESTA, FLORIDA Computation of Direct and Overlapping Debt (Unaudited) September 30, 1988 Taxing Authority Village of Tequesta Palm Beach County Palm Beach County School Board Total Percentage Applicable Net Debt To Outstanding Tequesta $ 623,080 100.00$ 91, 79 5, 000 .70$ 243,475,000 .70$ Amount Applicable To Tequesta $ 623,080 642,565 1,704,325 $2,969,970 87 VILLAGE OF TEQUESTA, FLORIDA Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures (Unaudited) Last Ten Fiscal Years Rat i o of Debt Total Service to Fiscal Year Total General Total Ended Debt Expenditures General September 30 Principal Interest Service T (1) Expenditure 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 2,174,651 4.0 1987 25,000 65,855 90,855 2,520,768 3.6 1988 25,000 64,350 89,350 2,916,900 3.1 (1) Includes General, Special Revenue, Debt Service and Capital Projects Funds. 88 VILLAGE OF TEQUESTA, FLORIDA Revenue Bond Coverage Water Bonds (Unaudited) Last Ten Fiscal Years Net Revenue Fiscal Year Available Debt Service Requirements Ended Gross Operating for Debt Cover September 30 Revenues Expenses Service Principal Interest Total age 1979 $ 995,592 $ 493,811 $501,781 $ -0- $264,263 $264,263 1.89 1980 1,088,504 659,326 429,178 -0- 275,948 275,948 1.55 1981 1,207,659 752,255 455,404 -0- 274,759 274,759 1.65 1982 1,249,423 745,584 503,839 -0- 275,090 275,090 1.83 1983 1,245,749 804,402 441,347 -0- 275,252 275,252 1.60 1984 1,349,576 982,883 366,693 -0- 276,344 276,344 1.33 1985 1,566,884 1,239,255 327,629 25,000 183,139 208,139 1.57 1986 1,620,609 1,310,250 310,359 65,000 134,421 199,421 1.56 1987 1,760,534 1,434,538 325,996 70,000 132,919 202,919 1.61 1988 1,834,930 1,437,407 397,523 75,000 112,036 187,036 2.13 89 VILLAGE OF TEQUESTA, FLORIDA Property Value, Construction and Bank Deposits (Unaudited) Last Six Fiscal Years Commercial Residential Construction (1) Construction(1) Property Value(3) Num er Num er Fiscal of of Bank Real Persona Year Units Value Units Value Deposits (2) Property Propert 1983 2 $ 687,754 39 $5,535,834 $270,278,000 $199,394,093 $10,410, 1984 3 329,567 50 4,366,966 232,803,399 206,820,038 11,333, 1985 9 4,692,681 33 2,106,652 224,302,732 219,001,538 10,902, 1986 2 828,435 5 484,135 272,519,953 233,658,151 10,812, 1987 1 116,250 27 2,717,154 269,494,041 257,766,850 11,547, 1988 6 6,803,410 24 3,358,458 294,073,604 329,524,860 12,052, 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. 90 VILLAGE OF TEQUESTA, FLORIDA Principal Taxpayers (Unaudited) September 30, 1988 Percentage 1988 of Assessed Assessed Taxpayer Type of Business Valuation Valuation Lighthouse Plaza (Lighthouse Plaza Assoc., LTD.) Shopping Center $ 6,417,320 2.33$ Dorner Properties (Bank of Palm Beach & Undeveloped Trust Co.) Real Estate 6,287,541 2.29$ Tequesta Shoppes, Ltd. (Pride Plaza, Inc.) Shopping Center 4,666,543 1.70$ County Line Plaza (Tequesta Associates - Pantlin Associates) Shopping Center 4,064,765 1.48$ Haisfield Enterprises Intracoastal of Florida Villas Residential Development 3,363,500 1.22$ Barnett Bank (First Bank of Jupiter/ Tequesta) Commercial Bank 3, 250, 859 1 . 18$ Tequesta Plaza (Felhaber Corporation) Shopping Center 2,643,518 .96$ Tequesta Fashion Mall (Edwin J. Nelson) Shopping Center 2,467,267 .89$ Tequesta Country Club Golf/Social Club 1,861,247 .67$ Feibel Recreation Center, Inc. (Tequesta Corp. Center Professional Partners) Offices and Bank ___1,568,374 .57$ Total $36,590,934 Source: Palm Beach County Property Appraiser's office. 91 VILLAGE OF TEQUESTA, FLORIDA Miscellaneous Statistics (Unaudited) September 30, 1988 Date of Incorporation: 1957 Forms of Government: Council-Manager, 3 Councilmembers elected even years, 2 Councilmembers elected odd years Municipal Elections: Non-Partisan Area: Approximately 2 square miles Miles of Streets: Approximately 17 miles Fire Protection: Provided by - Palm Beach County Fire Insurance Rating - 6 Police Protection: Number of stations - 1 Number of certified off icers - 16 Number of dispatchers - 4 Municipal Water Department: Number of customers - 4,159 Average daily consumption - 2.382 million gallons Miles of water mains - 43 miles Sanitary Sewage: Service provided by Loxahatchee River Environmental Control District Storm Sewers: Adequate coverage Garbage Collection: Service franchised to Nichol's Sanitation Frequency of service is bi-weekly Electric Service: Florida Power & Light Company Telephone Service: Southern Bell Telephone & Telegraph Company Building Permits Issued: 685 Recreation and Culture: Number of parks - 3, approximately 52 acres Number of libraries - 1, branch of Palm Beach County system Number of volumes - 15,000-20,000 Municipal Employees: Full-time - 46 92 VILLAGE OF TEQUESTA, FLORIDA Demographic Statistics (Unaudited) Last Ten Fiscal Years (And as Available) Fiscal Year Population (1) Education Level in Years of Per Capita Median Formal Unemployment Income (2) Age (2) Schooling (2) Rate (3) 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 g.g 1986 4, 077 5. 9 1987 4,141 7.7 1988 4,448 7.2 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. 93 NOWLEN, HOLT & MINER, P.A. CERTIFIED PUBLIC ACCOUNTANTS 215 FIFTH STREET SURE 200 POST OFFICE 80X 347 WEST PALM BEACH, FLORIDA 33x02-9989 TELEPHONE 14071 659.3080 FAX 14071 835.0628 EvEREtt B NOwLEN CPA I ~ 930-~ 96n EOwARO T HOLT. CPA WLWM B MINER, CPA ROBERT W HENDRI%. JA .CPA ,JANET R BAAICE VIC H. CPA BE WEEK5.CPA KATHLEEN A BE NTLE r. CPA KIM HATCHER BEAUMONT CPA GAIL N MOrE. CPA MAAIL rN ROBERTS. CPA R GREGORr SMITH CPA MARTHA ANN HERB CPA ROBERT W HELMREICH, CPA LAWRENCET YANCE CPA TE RgrI MORTON JR.CPA N RONALD BENNETT, CPA MEMBERS AMERICAN MISi1TUTE OF CERTIFIED PUBLIC ACCOUNTAMS FLORIDA INSTITUTE OF CERTIFIED PUBl1C ACCOUNTANTS ACCOUNTING FIRMS ASSOCUTED !qC BEU.E GLAOE OFFICF 333 S E 2~ STREET POST OFFICE BOx 33A BELLE GLADE, FLORfDA 33430.03EG TELEPHONE 14071 9965617 REPORT ON INTERNAL ACCOUNTING CONTROLS BASED SOLELY ON A STUDY AND EVALUATION MADE AS A PART OF AN AUDIT OF THE GENERAL PURPOSE FINANCIAL STATEMENTS The Honorable Mayor and Village Council Village of Tequesta, Florida We have audited the general purpose financial statements of the Village of Tequesta, Florida for the year ended Septembe r 30, 1988, and have issued our report thereon dated December 19, 1988. As a part of audit, we made a study and evaluation of the system of internal accounting control of the Village of Tequesta to the extent we considered necessary to evaluate the system as required by 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 Or anizations, Pro rams, Activi- ties, and Functions. For t e purpose o this report, we have c assi- ie t e signs scant internal accounting controls in the following categories: cash, revenue and receivables - governmental funds, expenditures for goods and services and accounts payable, payroll and related liabilities, and fixed assets and capital expenditures, debt and debt service expenditures. Our study included all of the control categories listed above except that the Village of Tequesta is so small that it is not feasible to have an adequate internal control system, therefore, we did not rely on the system of internal control to restrict the nature, timing and extent of auditing procedures necessary for expressing an opinion of the Village's financial state- ments. Our study and evaluation was more limited than would be necessary to express an opinion on the system of internal accounting control taken as a whole or on any of the categories of controls identified above. 94 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 above 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 of Tequesta taken as a whole or any of the categories of controls identified in the second paragraph. However, our study and evaluation disclosed the following conditions that we believe results in more than a relatively low risk that errors or irregularities in amounts that would be material in rela- tion to the financial statements of the Village of Tequesta, may occur and not be detected within a timely period. SeareQation of Duties There is inadequate separation of duties in all the control cycles. Although the limited number of personnel in the Village's accounting staff limits the extent of separation of duties, procedures can be performed to compensate for this weakness. A responsible official or employee not involved in the accounting functions should periodically perform tests on a sample basis to determine if the accounting procedures of the various control cycles are being carried out in compliance with prescribed standards. Prior Year Comments Which Continue to Apply Meter deposits reconcilation During our fieldwork, we received a computer printout for water customer deposits which was not mathematically correct. In addition, a manual card file reconciliation revealed a dif- ferent balance.- 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. 95 We recommend all computer programs and printouts be checked for accuracy. After discussion with Village personnel,. it was determined that -the manual card file data was reliable. Plans were made with programmers to resolve program problems and it was agreed that the Water department personnel will reconcile the account on a regular basis. Current Year Comments Building department revenues We observed that the Village building department has not prepared deposits in a timely manner. Cash has been held for several days resulting in large sums of cash on hand which could be lost or stolen. The Village should make daily bank deposits for each department receiving revenues. As an alternative, the Village may wish to establish a maximum amount of cash to be received before making a deposit. All cash on hand should be stored in the Village safe each evening. These procedures will help prevent the loss or misuse of funds and will make cash more readily available for expenditures and investment activities. Buildin department - cash receipts journal During the course of our audit, it came to our attention that building department deposits have not been reconciled to the cash book. Proper internal control for cash receipts dictates that a cash receipts book be maintained, summarized and totaled daily and agreed to a deposit slip. Failure to do so could result in receipts being omitted, without a reconciliation the error would go undetected. We recommend that the cash book be maintained daily on an agreed to daily deposit slip. This procedure provides a necessary control feature over revenues received. The above conditions were considered in determining the nature, timing and extent of the audit tests to be applied in our examination of the 1 988 financial statements and this report does not affect our report on these financial statements dated December 19, 1988. 96 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 purpose. 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 several of our com- ments from the prior years and appreciate the courtesy and coopera- tion shown us by the Village staff. Respectfully submitted, 71~~,,~. ~ I.I.~P~- ~ ~l~ !?. 14--. December 19, 1988 97 NOWLEN, HOLT & MINER, P.A. CER71fIED PUBLIC ACCOUNTANTS 215 FIFTH STREET SURE 200 vOSr OFFICE BOx 347 WEST PALM BEACH. FLORIDA 334029989 TELEPHONE f407f 6593060 FAx 14071 835-0628 EVERETT B NOWLEN CPA X1930-19BA~ EDWARD T MOLT. CPA WILLIAM B MINER. CPA ROBERT w HENORIx JR .CPA JANET R BARICEVICM CPA BE WEEKS CPA KATHLEEN A BENTLEY. CPA KIM MATCHER BEAUMONT CPA GAIL M MOrE. CPA MARILYN ROBERT. CPA R GREGORr $AAITH CPA MARTHA ANN HERB. CPA ROBERT w MELMREICH CPA LAWRENCE 7 VANCE. CPA TERRVL MORTON JR CPA N RONALD BENNETT CPA MEMBERS AMERICAN M$TITUTE OF CERTIFIED PUBLIC ACCOUNTAN'S FLORIDA INSTITUTE OF CERTIFIED PUBl1C ACCOUNT Ah'$ ACCOUNTING FIRMS ASSOCU TEC 7VC December 19, 1988 REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS BASED ON AN AUDIT OF GENERAL P RPOSE FINANCIAL S A EME TS PERF RMED IN ACCORDANCE WITH THE STANDARDS FOR AUDIT BY THE GAO The Honorable Mayor and Village Council Village of Tequesta, Florida BEIIE GIADE OFFICE 333 S E 2n0 STREET POST OFFICE BOx 338 BELLE GLADE. FLOPoDA 3330-6388 TELEPHONE 1071 g9!l-381? We have audited the general purpose financial statements of the Village of Tequesta, Florida for the year ended September 30, 1988, and have issued our report thereon dated December 19, 1988. Our audit was made in accordance with generally accepted auditing stan - dards and the standards for financial and compliance audits contained in the Standards for Audit of Governmental Or anizations, Pro ram Activities an Functions, issued y t e U.S. Genera Accounting 0 ice, an accor ing y included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The management of the Village of Tequesta, Florida 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 non-compliance 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 transactions 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 or imma- terial effect on the Village's general purpose financial statements. 98 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, December 19, 1988 99 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. 100 No Text