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CAFR_FY Ending_09/30/1989Comprehensive Annual Financial Report Village of Tequesta, Florida Fiscal Year Ended September 30, 1989 COMPREHENSIVE ANNUAL FINANCIAL REPORT VILLAGE OF TEQUESTA, FLORIDA September 30, 1989 Prepared by the Finance Department VILLAGE OF TEQUESTA, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT September 30, 1989 TABLE OF CONTENTS Introductory Section Title Page Table of Contents Letter of Transmittal Certificate of Achievement for Excellence in Financial Reporting Village of Tequesta Organization Chart List of Principal Officials Financial Section Independent Auditor's Report General Purpose Financial Statements Combined Balance Sheet--All Fund Types and Account Groups Combined Statement of Revenues, Expenditures and Changes in Fund Balances--All Governmental Fund Types Combined Statement of Revenues, Expenditures and Changes in Fund Balances --Budget and Actual-- Governmental Fund Types Statement of Revenue s, Expenses and Changes in Retained Earnings--Proprietary Fund Type Statement of Changes in Financial Position-- Proprietary Fund Type Notes to Financial Statements Suppl ement al I nfo rmation General Fund Schedule of Revenues--Budget and Actual Schedule of Departmental Expenditures-- Budget and Actual Proprietary Fund (Enterprise Fund) ,Schedule of Operating Expenses--Budget and Actual Comparative Summary of Operations--Fiscal Years Ended September 30, 1989 and 1988 Schedule of Restricted Accounts Under Revenue Bond Ordinance Page Number i 1- 2 3-11 i2 13 14 15-16 17-20 21-22 23-25 26 27 28-50 51-52 53-60 61 62 63-64 1 VILLAGE OF TEQUESTA, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT September 30, 1989 TABLE OF CONTENTS (Continued) Page Number Amortization Schedule--Water Refunding Revenue Bonds - Series 1985 65 Fiduciary Fund Schedule of Changes in Assets and Liabilities - -- Agency Fund 66 General Fixed Asset Account Group Schedule of General Fixed Assets By Source 67 Schedule of General Fixed Assets By Function 68 Schedule of Changes in General Fixed Assets By Function 69 General Long-Term Debt Amortization Schedule--Improvement Revenue Bonds - Series 1979 70 All Funds Schedule of Investments 71 Schedule of Insurance 72 Statistical Section General Revenues by Source 73-74 General Government Expenditures by Function 75-76 Property Tax Levies and Collections 77 Taxable Value and Just Value of Taxable Property 78-79 Property Tax Rates--All Overlapping Governments 80-81 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita 82-83 Legal Debt Margin 84 Computation of Direct and Overlapping Debt 85 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures 86 Revenue Bond Coverage--Water Bonds 87-88 Property Value, Construction and Bank Deposits 89 Principal Taxpayers 90 Miscellaneous Statistics 91 Demographic Statistics 92 Other Reports Independent Auditor's Report on Internal Control Structure 93-95 Independent Auditor's Report on Compliance with Laws and Regulations 96-97 Statutory Report 98 Appendix A: Statement of Comments and Recommendations 99-100 2 VILLAGE OF TEQUESTA Post Office Box 3273 • 357 Tequesta Drive Tequesta. Florida 33469-0273 • (407) 575-6200 FAX: (407) 575-6203 December 15, 1989 To the Citizens of the Village of Tequesta, Florida The Comprehensive Annual Financial .Report of the Village of Tequesta, Florida, for the fiscal year ended September 30, 1989, 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. The Comprehensive Annual Financial Report is presented in three sections: introductory, financial and statistical. The introductory section includes this transmittal letter, the Village's organiza- tional chart and a list of principal officials. The financial section includes the general purpose financial statements and individual fund and account group financial statements and schedules, as well as the auditor's report on the general purpose financial statements. The statistical section includes selected financial and demographic information, generally presented on a multi-year basis. This report includes all funds and account groups of the Village. The Village provides a full range of services. These services include police protection; the construction and maintenance of highways, streets, and infrastructure; recreational activities; the operation of a municipal water supply system, in addition to general gove rrunent activities. The Village also contracts with Palm Beach County for fire-rescue service, and a privately owned sanitation company for garbage and refuse service. 3 ECONOMIC CONDITION AND OUTLOOK The Village is located at the northeastern boundary of Palm Beach County. Tequesta is a relatively affluent residential com- munity with adequate commercial facilities necessary to provide goods and services to its residents. Northern Palm Beach County ranks as one of the top growth areas in the country, and the economic condi- tion and outlook of the Village's growth potential for the next decade is excellent. During September, the Village conducted an intensive five day planning Charrette to develop aI ter MBi~ter Plate" for a 90 acre area located in the center of the `'V'illage commercial business district. The Village is currently in the process of marketing and implementing the Master Plan. During the past two years, property values have increased 13.5$, The develop- ment contemplated in the Town Center Master Plan should result in municipal property values increasing at a substantially greater pace than experienced the past few years. Based on current projections, this trend is expected to continue through the end of the century. While having a positive impact, such growth also presents significant challenges for the Village. If the present high level of services are to be maintained, the Village will need to explore new methods of obtaining financial resources for the future. The additional employees required to provide expanded government services should be minimal. MAJOR INITIATIVES In preparing the 1989 budget, the Village identified three specific areas of concern: ° Expansion of Transportation Corridors ° Expansion of Potable Water Treatment Facilities ° Expansion of Storm Water Drainage Facilities During the year the Village began the construction phase of widening Tequesta Drive, the main east-west thoroughfare within the Village. On September 30, 1989, project expenditures reported in the Capital Projects Fund were $620,687, representing more than 50$ of project costs. The project is scheduled for completion in April 1990. During the year, an intersection improvement was also com- pleted at a cost of $27,176. Expenditures reported in the Proprietary Fund in the amount of $922,712 for the acquisition of property, plant and equipment included capital outlay expenditures for the completion of expansion to the water treatment plant which has increased daily pumping capacity from 1.8 to 2.7 million gallons per day. Storm water drainage system expenditures in the amount of $13,765 provided for the Village's share of an engineering study addressing local storm water issues. Future projects will include completion of landscaping for the Tequesta Drive Widening Project, and landscaping improvements for the Beach Road Beautification Project, further expansion of the potable water system, and improvements to the local storm water drainage systems . Maintenance and expansion of the community's general infrastruc- t ure (such as roads, bridges, sidewalks and storm water drainage systems) remain a major concern of the Village. To address this concern, the government has leveloped a five-year capital projects plan that provides a framework for the development and maintenance of infrastructure to meet current and future needs. This plan is revised each budget year. FINANCIAL INFORMATION Management of the Village is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the government are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is d esigned to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. Budgetary Controls In addition, the Village maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the Village Council. Activities of the General Fund, Debt Service Fund, Capital Projects Fund and Proprietary Fund are included in the annual appropriated budget. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropri- ated amount) is established by function within each individual fund. The government also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Encumbered amounts lapse at year end. However, encumbrances generally are reappropri- ated as part of the following year's budget. As demonstrated by the statements and schedules included in the financial section of this report, the Village continues to meet its responsibility for sound financial management. 5 General Government Functions The following schedule presents a summary of General Fund and Debt Service Fund revenues for the fiscal year ended September 30, 1989 and the amount and percentage of increases and decreases in relation to prior year revenues. Increase Percent of Percent (Decrease) Increase Revenues Amount of Total From 1988 (Decrease) Taxes $2,199,925 66.12$ $ 55,992 2.618 Licenses & Permits 219,862 6.61 49,028 28.70 Intergovernmental 495,559 14.90 1,915 .39 Charges for Services 32,941 .99 13,379 68.39 Fines & Forfeitures 51,555 1.55 (1,479) (2.79) Miscellaneous 248,628 7.47 164,296 243.37 Intergovernmental Services 78,540 2.36 7,140 10.00 Total $3,327,010 100.00$ -T $290,271 ~ The most significant increase in actual continued revenue sources was derived from licenses and pera~~. A lame portion of these revenues resulted from an increase in °occupational li~cen~e tuaxes and building permit fees. The largest actual revenue increase came from miscellaneous revenue s. The principal source of these revenues, $125,338, was for p~a°k,and.recreation impact fees. received .from developers. However, future revenues from this source will be less significant since the remaining undeveloped land within the Village consists of less than 10$ of the total land area available for development. Taxes accounted for the largest percent of actual revenues. Tax revenues consist of three distinct resources: ad valorem property tax, franchise fees and utility service tax. The property tax rate for 1989 was 5.7510 mills, well within the ten mill rate limit established by the State. However, it is worthy of noting that the Village provides garbage/refuse service and fire-rescue service to its citizens from property tax revenues. If the cost of providing these services were removed from the Village's property tax millage rate, and billed directly or separately, as is the practice in most Florida municipalities, the Village's property tax millage rate would have been reduced $713,803 or 47.69$ to 2.7427 mills. 6 Expenditures The following schedule presents a summary of General Fund and Debt Service Fund expenditures for the fiscal year ended Septem- ber 30, 1989, and the amount and percentage of increases and decreases in relation to prior year amounts: Increase Percent of Percent (Decrease) Increase Amount of Total From 1988 (Decrease) ~_ Current: General Government $ 549,033 20.00$ $119,401 27.79$ Public Safety 1,387,841 50.56 (47,519) (3.31) Physical Environ- ment 337,268 12.29 29,053 9.43 Transportation 279,718 10.19 9,845 3.65 Human Services 1,067 .04 565 200.12 Culture & Recreation 103,019 3.75 (8,447) (7.58) Debt Service: Principal 25,000 .91 Interest 61,905 2.26 (2,445) (3.80) Total $2,744,851 100.00$ $100,453 _~ The significant increase in General Government expenditures was primarily attributable to: the addition of one full-time employee in the Finance & Administration Department, increasing departmental expenditures 23$; Planning and Zoning expenditures were increased 319$ from $22,234 to $93,151 due to planning consultant services necessary to complete the State mandated comprehensive development plan; other departments experienced less significant increases, which were primarily the result of employee COLA and merit increases averaging 7.5$ and increased group health insurance costs of 10$. Physical Environment increased expenditures were for employee COLA adjustments required per the government franchise agreement with Nichols Sanitation for residential garbage/refuse service, and a 12$ increase in landf ill tipping fees. Public Safety expenditures were reduced primarily as a result of the elimination of one lieutenant position within the Police Depart- ment, and a decrease in general insurance costs attributed to prior year insurance audit adjustments. General Fund Balance. The Fund Balance of the General Fund was $927, on Septem er , 1989, of this total $126,955 was designated for encumbrances and subsequent year expenditures. The resultant cash position of $801,009 is more than adequate to provide the capital resources necessary for government operations. The likeli- hood of the government entering the short-term debt market to pay for current operating expenditures is highly remote. Ca~it~a__l~Pro'ects Fund. The Capital Projects Fund is used to account~or ~inancia resources to be used for the construction of major capital facilities other than those accounted for in the Proprietary Fund. Revenues and other financing sources this fiscal year were $916,777, consisting of inter-governmental revenues of $205,-553, interest income $11,224, and operating transfers from the General Fund of $550,000 and $150,000 from the Water Enterprise Fund. Expenditures reported this fiscal year were $675,050 for the following listed projects. Project Amount Cypress Drive Drainage $ 13,765 Tequesta Drive & Riverside Drive Road Improvements 27,176 Tequesta Drive Sign and Landscape 6,000 Tennis Court Resurfacing 7,422 Tequesta Drive Widening 620,687 Total $675,050 Proprietary Operations. The government's proprietary operations consist of the Water Enterprise- Fund. Operating revenues for 1989 increased 13.7$. The increased revenues can be attributed to a tiered water consumption rate increase adopted in July 1989. The Village Council also increased security deposits to reduce the prob- ability of losses occurring from the non-payment of final bills. The capital connection charges to the water system were also increased, per recommendations from the Village's consulting engineers, to provide the capital resources necessary for the expansion of water supply and treatment facilities to accommodate future water service demands. The Enterprise Fund income and expense data for 1989 is shown in the following schedule: 8 Income and Expenses Operating Revenues $1,896,136 Operating Expenses 1,555,291 Operating Income 34.0,845 Non-Operating Revenues (expenses) 92,436 Income before Operating transfer 433,281 Operating transfer out (150,000) Net Income $ 283,281 Enter rise Fund Bonded Debt. On January 1, 1985, the Village issued ,5 5, Water Re un ing Revenue Bonds. The bonds received Moody's AAA, and Standard & Poor's AAA (MBIA) ratings. The bond sale proceeds were used to refund Series 1978 Water Refunding Revenue Bonds. The bonds are secured by the net revenues of the Enterprise Fund. On September 30, 1989, $1,210,000 of the bonds remained outstanding. Fiduciar 0 erations. The Village's fiduciary operations consist o an Agency Fun used to account for investments held by the government as trustee for employees participating in a deferred compensation plan administered by ICMA Retirement System. Debt Administration. The Debt Service Fund is used to account for t e accumu anon o resources for the payment of general -long- term debt principal, interest and related costs. The General Long- Term Debt Account Group is used to account for long-term liabilities e xpected to be financed from governmental funds. The government issued $910,000, Series 1979 Improvement Revenue Bonds, on October 1, 1979, to finance drainage improvements. -The bonds received Moody's A and Standard & Poor's AAA (MBIA) ratings. 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 the first lien on certain franchise fees, public service taxes and occupational license taxes. On September 30, 1989, $710,000 of the bonds remained outstanding. The Village does not have a legal debt limitation. During the current year, the Village did not issue any bonded debt. As of September 30, 1989, the Village's net bonded debt was $588,161, the ratio of net bonded debt to taxable value was 19$ and the net bonded debt per capita was $131.32. 9 Cash Mana ement. The Village maintains two pooled cash accounts known as t e general corporation investment account and the water enterprise investment account. The equity of all funds comprising the investment accounts is maintained at all times. Cash require- ments are constantly monitored and temporary idle cash is approved for investment by the Village Manager upon recommendation from the Finance Director. The investment policy of the Village is to maxi- mize its investments in high quality risk free securities authorized by State Statutes, while maintaining a competitive yield on its portfolio. Preference is also given for purchasing investments with local financial institutions when comparable interest rates are quoted. The Village's investments for the current year consisted of Certificates of Deposit and Money Market Accounts ranging from 30 to 365 days, and time deposits with the State Board of Administration, Local Government Surplus Funds Trust Fund Investment Pool. Invest- ments with the State Board of Administration consist of obligations of the U.S. Treasury and its agencies, money market securities of highest quality such as commercial paper, banker's acceptance, corporate notes and repurchase agreements. Because of the short maturities and high quality, securities in this fund are considered practically risk free. On September 30, 1989, investments held by the Village totaled $3,470,466, which is detailed in Note 2, Notes to Financial Statements. The average yield on investments maturing during the year was~~:9.10 and the average yield on money market investment accounts wasp 6.06~.~ Risk Management. During 1989, the Village continued using third- party insurance coverage for its Risk Management Program. Also during the year, the government conducted CPR - Cardiac, Pulmunary, Resuscitation, training classes and distributed MSDS - Material Safety Data Sheets, in accordance with the 1986 Congres- sional Emergency Planning and Community Right-to-Know Act,- and regularly distributed a safety newsletter to all its employees to assist in the prevention of accident related losses. A detailed list of insurance in effect is contained in the Schedule of Insurance section of this report. OTHER INFORMATION Inde endent Audit. State statutes require an annual audit by indepen ent certi ie public accountants. The accounting firm of Nowlen, Holt & Miner, P.A., CPA's, was selected to conduct the Village audit. The auditor's report on the general purpose financial statements is included in the financial section of this report. 10 Awards. The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Village for its comprehensive annual financial report for the fiscal year ended September 30, 1988. This was the seventh consecutive year that the Village has received this presti- gious award. In order to be awarded a Certificate of Achievement, the Village published an easily readable and efficiently organized comprehensive annual financial report. This report satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's require- ments and we are submitting it to the GFOA to determine its eligi- bility for another certificate. Acknowled ements. The preparation of the comprehensive annual financia report on a timely basis was made possible by the dedicated service on the entire staff of the Finance Department and Village Manager's office. Each member of the departments mentioned has our sincere appreciation for the contributions made in the preparation of this report. In closing, without the leadership and support of the Village Council of the Village of Tequesta, preparation of this report would not have been possible. Sincerely, n ~~ ~~ Thomas G. Bradford Village Manage r /%~- Bill K cavelis Finance erector 11 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, 1988 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 (CAFR's) achieve the highest standards in government accounting and financial reporting. President ~G~ `~~~~ Executive Director 12 VILLAGE OF 1F~QUE.STA ORGANIZATIONAL (~iAaf 13 VILLAGE OF TEQUESTA, FLORIDA Council - Manager Form of Government VILLAGE COUNCIL - 1988-1989 Joseph N. Capretta Edward C. Howell William E. Burckart Earl L. Collings Ron T. Mackail VILLAGE OFFICIALS Thomas G. Bradford John C. Randolph (Jones, Foster, Johnston & Stubbs) Bill C. Kascavelis Carl R. Roderick Scott D. Ladd Gary Preston Thomas C. Hall Manager Attorney Mayor Vice-Mayor Councilmember Councilmember Councilmember Finance Director/Clerk Police Chief Building Official Director, Public Works & Recreation Water System Manager INDEPENDENT CERTIFIED PUBLIC ACCOUNTS Nowlen, Holt & Miner, P.A. 14 NOWLEN, HOLT & MINER, P.A. cEnT~F7EC Pu~euc ACCOUNTANTS 2~ s fFTN sTHEET sst,xrE 200 POST OFFCE BOx 317 WEST PALM BEACH.FLOipDA 33102•Y9BB TELEPHONE 1107) B59.30d0 FAX 1107) 03S•OE2ls EvERETT B NOWLEN.CPA,1930-19Ea~ EDWARD T HOLT. CPA wILUAM 8 41NER CPA R08fRT W MENDRI% JR CPA ,iANET R BAAICEVICH CPA B E WEEKS. CPA KAT}q.EEN A. MNJEA. CPA KFI MATCHER 6EAUMONT. CPA MARILVN ROBEATS. CPA A GRE GORY SMRM CPA ROBERT W HELMRECH. CPA TERRY L. MORTON. ,PI-. CPA N AONMp BENNETT. CPA RUTH ANN A.9IAYEAD. CPA J MCHAEL STfVEN$ CPA MArAA AMOREI'TdiOSS, CPA MEMBER6 AAEPICAN 88)TRYTE OF CfRTFED PIAlIJC ACCOUNTANTS iLO/~A NST1fUTE OF CERTIFED PUBIC AOCOUNTANTS ACCOIAdTMG i8i~1S ASSOpATED !IC The Honorable Mayor Village of Tequesta Tequesta, Florida INDEPENDENT AUDITOR'S REPORT and Village Council BELLE GLADE OFFCE 777 S.E. 21tl STREET P06T OFFICE BOf( 736 BELLE fB.ADE. FLORA 73170-0.738 TELEPfipE IIO7) 886.58, 2 FAx (107) 888218 We have audited the accompanying general purpose financial statements of the Village of Tequesta, Florida, as of and for the year ended September 30, 1989. These general purpose financial statements are the responsibility of the Village's management. Our responsibility is to express an opinion on these general purpose financial state- ments based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comp- troller General of t e United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall 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, 1989, 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. 15 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. December 15, 1989 16 VILLAGE OF TEQUE5TA, FLORIDA Combined Balance Sheet - All Fund Types and Account Groups September 30, 1989 Assets Governmental Fund Types Debt Capital General Service Projects ~_ Cash and cash equivalents $ 444,054 $ 18,253 $123,924 Cash with fiscal agent 31,668 Investments 555,972 100,000 202,175 Receivables Accounts (net of allowance for uncollectibles) 2,503 Accrued interest 230 2,773 Due from other funds 8,397 813 100,000 Due from other governments 7,129 Inventories of supplies 735 Unamortized debt issue costs Restricted assets Cash and cash equivalents _ ~ Investments Fixed assets Amount available in debt service fund Amount to be provided for retirement of general long-term debt Total assets $1,019,020 $153,507 $42_ 6_099 17 Proprietary Fiduciary Fund Type Fund Type Account Grou s Genera enera Totals Fixed Long-Terms (Memorandum Enterprise Agency Assets Debt Only) $ 305,121 $ $ $ $ 8 31,668 X 1,284,663 90,162 x,2,232,972 178,715 181,218 245 3,248 109,210 7, 129 17,055 17,790 59,413 59,413 232,830 ... - -- ~ 232,830 ._,~_. _ v ~ _ _~.,,~ ~7 , ~4 9 4 .,~ 1 , 2 3 7 , 4 9 4 4,890,085 963,475 5,853,560 121,839 121,839 662,542 662,542 $8,205,621 $90,162 $ 963,475 $784,381 $11,642,265 See notes to financial statements. 18 VILLAGE OF TEQUESTA, FLORIDA Combined Balance Sheet - All Fund Types and Account Groups (Continued) September 3 0 , 19 8 9 Liabilities and fund equity Liabilities Accounts payable Accrued liabilities Matured interest payable Payable from restricted assets Accounts payable Deposits Due to other funds Due to other governments Deferred r eve nue Deferred compensation payable Contracts 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 Inventory of supplies Debt service Recreation and parks Encumbrances Unreserved Designated Subsequent year's expenditures Debt service Undes ig nated Governmental Fund Types Debt Capital General Service Projects $ 32,111 $ 12, 176 813 22,068 23,888 31,668 $ 67,546 91,056 31,668 67,546 735 135,446 45,210 177,209 81,745 146,300 32,259 664,828 Total fund equity 927, 964 121 , 839 Total liabilities and fund equity $1,019,020 $153,507 89,580 35,044 358,553 $426,099 19 Proprietary Fund Type Enterprise $ 19,203 1,925 16,034 154,916 108,397 770 118,863 1,210,000 (27,396) 4,478 1,607,190 2,389,706 851,004 3,357,721 Fiduciary Fund Type Agency 90,162 90,162 Account Groups 'Z~enera enera Fixed Long-Term Assets Debt 963,475 74,381 710,000 784,381 Totals (Memorandum Only) $ 1 18, 860 88,482 31,668 16,034 154,916 109,210 22,838 23,888 90, 162 1 18, 863 710,000 1,210,000 (27,396) 4,478 2,672,003 963,475 2,389,706 851,004 3,357,721 735 89,580 135,446 222,419 228,045 32,259 699,872 6,598,431 963,475 .__ $8,205,621 $90,162 $ 963,475 $784,381 ~~ ~ See notes to financial statements. 20 8,970,262 $11,642,265 VILLAGE OF TEQUESTA, FLORIDA Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - Al1 Governmental Fund Types For the Fiscal Year Ended September 30, 1989 General Revenues Taxes $2,199,925 Licenses and permits 219.862 Intergove rnme ntal revenues 495, 559 Charges for services 32,941 Fines and forfeits 51,555 Miscellaneous revenues 231,804 Intragovernmental services 78,540 Total revenues 3, 310~~6 Expendi tures Current General government 549,033 Public safety 1,387,841 Physical environment 337,268 Transportation 279,718 Human services 1,067 Culture/recreation 103,019 Capital outlay Debt service Principal retirement Interest and fiscal charges Total expenditures ,65 , Excess of revenues over (under) expenditures 652,240 Other financing sources (uses) Operating transfers in Operating transfers out (630,000) Total other financing sources (uses) 63 ,~) Excess of revenues and other sources over (under) expenditures and other uses 22,240 Fund balances, October 1, 1988 905,724 Fund balances, September 30, 1989 $ 927,964 21 Governmental Fund Types Totals Debt Capital (Memorandum Service Projects Only) $ $ $2,199,925 219,862 205,553 701,112 32,941 51,555 16,824 11,224 259,852 78,540 16,824 216,777 3,54 , 549,033 1,387,841 337,268 279,718 1,067 103,019 675,050 675,050 25,000 25,000 61,905 61,905 86,905 675,050 3,419,901 (70,081) (458,273) 123,886 80,000 700,000 780,000 (630,000) 8p,~~ 7 0,000 50,0 0 9,919 241,727_ 273,886 111,920 116,826 1,134,470 $121,839 $ 358,553 $1,408,356 _~~-- See notes to financial statements. 22 VILLAGE OF TEQUESTA, FLORIDA Combined Statement of Revenue s, Expenditures, and Changes in Fund Balances - Budget and Actual Governmental Fund Types For the Fiscal Year Ended September 30, 1989 Revenues Taxe s Licenses and permits Intergovernmental revenues Charges for services Fines and forfeits Miscellaneous revenues Inteagovernmental services Total revenues Expenditures Current General government Public safety Physical environment Transportation Human services Culture/recreation Capital outlay Debt service Principal retirement Interest and fiscal changes Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses) Operating transfers in Operating transfers out General Fund n e - Favorable Budget Actual (Unfavorable) $2,150,050 171,000 492,001 40,800 50,250 71,600 78,540 $2,199,925 219,862 495,559 32,941 51,555 231,804 78,540 $ 49,875 48,862 3,558 (7,859) 1,305 160,204 3,054,241 3,310,186 255,945 564,590 1,447,545 340,500 316,035 1,725 112,525 549,033 1,387,841 337,268 279,718 1,067 103,019 15,557 59,704 3,232 36,317 658 9,506 2,782,920 2,657,946 271,321 652,240 (630,000) (630,000) Total other financing sources (uses) (630,000) (630,000) Excess of reve Hues and other sources over (under) expenditures and other uses $ (358,679) 22,240 Fund balances, October 1, 1988 Fund balances, September 30, 1989 905,724 23 $ 927,964 124,974 380,919 $38~~ ~~~ p~ r' 4 hV ~. Debt Service Fund ariance - Favorable Budget Actual (Unfavorable) $ $ $ Capital Proiects Fund variance - Favorable Budget Actual (Unfavorable) $ $ $ 206,000 205,553 (447) 7,500 16,824 9,324 5,000 11,224 6,224 _~- 16,824 9,324 211,000 216,777 5,777 ,_ ---- 858,700 675,050 183,650 25,000 25,000 62,430 61,905 525 ---- 87,430 86,905 525 858,700 675,050 183,650 (79,930) (70,081) 9,849 (647,700) (458,273) 189,427 80,000 80,000 700,000 700,000 80,000 80,000 700,000 700,000 $ 70 9,919 $ 9,849 .~~ $ 52,300 241,727 $189,427 111,920 116,826 $121,839 ~~~ $ 358,553 (Continued) 24 Totals (Memorandum Only) - ariance - Favorable Budget Actual (Unfavorable) $2,150,050 $2,199,925 $ 49,875 171,000 219,862 48,862 698,001 701,112 3,111 40,800 32,941 (7,859) 50,250 51,555 1,305 84,100 259,852 175,752 78,540 78,540 3,272,741 3,543,787 271,046 564,590 549,033 15,557 1,447,545 1,387,841 59,704 340,500 337,268 3,232 316,035 279,718 36,317 1,725 1,067 658 112,525 103,019 9,506 858,700 675,050 183,650 25,000 25,000 62,430 61,905 525 3,729,050 3,419,901 309,149 (456,309) 123,886 580,195 780,000 780,000 (630,000) (630,000) 150,000 $ (306,309) 150,000 273,886 1,134,470 $1,408,356 $ 580,195 See notes to financial statements. 25 VILLAGE OF TEQUESTA, FLORIDA Statement of Revenue s, Expenses, and Changes in Retained Earnings - Proprietary Fund Type For the Fiscal Year Ended September 30, 1989 Operating revenues Charges for services Operating expenses Purchased water Personal services Contractual services Supplies Heat, light and power Repairs and maintenance Depreciation Total operating expenses Operating income Nonoperating revenues (expenses) Interest revenue Interest expense and fiscal charges Loss on disposal of equipment Total nonoperating revenues Income before operating transfers Operating transfers (out) Net income Retained earnings, October 1, 1988 Retained earnings, September 30, 1989 See notes to financial statements. Proprietary Fund Type Enterprise $1,896,136 465,375 281,366 225,819 52,247 108,672 124,291 297,521 1,555,291 340,845 246,124 (120,982) (32,706) 92,436 433,281 (150,000) 283,281 3,925,444 $4,208,725 26 VILLAGE OF TEQUESTA, FLORIDA Statement of Changes in~Financial Position - Proprietary Fund Type For the Fiscal Year Ended September 30, 1989 Sources of working capital Operations Net income Items not requiring working capital Depreciation Amortization of debt discount and issue costs Loss on disposal of equipment Working capital provided by operations Capital contributions Increase in current liabilities payable from restricted assets Total sources of working capital Uses of working capital Increase in restricted assets Acquisition of property, plant and equipment Decrease in long-term debt Total uses of working capital Net decrease in working capital Elements of net increase (decrease) in working capital Cash Investments Accounts receivable Accrued interest receivable Accounts payable and accrued liabilities Due to othe r funds Contracts payable Net decrease in working capital See notes to financial statements. Proprietary Fund Type Enterprise $ 283,281 297,521 13,119 32,706 626,.627 265,980 19,336 911,943 286,053 922,712 80,634 1,289,399 $ (377,456) $ (236,235) 66,663 31,808 (9,627) (19,413) (91,789) (118,863) $ (377,4561 27 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1989 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Reporting Entity The Village of Tequesta is a municipal corporation organized under the laws of the State of Florida. The Village's-major operations include public safety (-police), streets and roads, culture and recreation, public improvements, planning and zoning, water service and general and administrative. In accordance with the provisions of Statement 3 issued- by the National Council on Governmental Accounting entitled, "Defining the Governmental Reporting Entity," as endorsed by the Governmental Accounting Standards Board (GASB), the basic, but not the only, criterion for including a potential component unit within the report- ing entity is the governing body's ability to exercise oversight responsibility. The most significant manifestation is financial interdependency. Other manifestations of the ability to exercise oversight responsibility include, but are not limited to, the selec- tion of the governing authority, the designation of management, the ability to significantly influence operations and accounting for fiscal matters. A second criterion used in evaluating potential component units is the scope of public service. Application of this criterion involves considering whether the activity benefits the government or its citizens, or whether the activity is conducted within the geographic boundaries of the government and is generally available to its citizens. A third criterion used to evaluate poten- tial component units for inclusion or exclusion from the reporting entity is the existence of special financing relationships, regard- less of whether the government exercises oversight responsibilities. Based upon application of these criteria, the Village of Tequesta has determined that there are no additional governmental departments, agencies, institutions, commissions, public authorities or other governmental organizations operating within the jurisdiction of the Village that would be required to be included in-the general purpose financial statements of the Village. Basis of Presentation - Fund Accounting The accounts of the Village are considered a separate accounting entity. The operations of each fund are accounted for through a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses as appropriate. An account group, on the other hand, is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in funds because they do not directly affect net expendable available financial resources. 28 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1989 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of Presentation - Fund Accounting (Continued) The following are the fund categories, funds and account groups used by the Village: 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- n ue 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. 29 VILLAGE OF TEQUESTA, FLORILIA Notes to Financial Statements September 30, 1989 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Proprietary Fund Type (Continued) The proprietary fund is accounted for on a cost of services or "capital 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 statements 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 Improvements Equipment 40 years 20 - 25 years 4 - 10 years 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 of operations. Account Groups General Fixed Assets Account Group The accounting and reporting treatment applied to the fixed assets 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 30 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1989 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Account Groups (Continued) General Fixed Assets Account Group (Continued) 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 resources" 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 consist- ing of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and light systems, are not capitalized. No depreciation has been provided on general fixed assets. All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated fixed assets are valued at their estimated fair market value on the date donated. General Long-Term Debt Account Group Long-term liabilities expected to be financed from governmental funds are accounted for in the General Long-Term Debt Group, not in the governmental funds. 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 debt 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 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. 31 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1989 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of Accountin4 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. Encumbrances The Village records encumbrances, if any, as a reservation of fund balance until expended or accrued as a liability of the fund. Encumbrances at September 30, 1989 were $222,419. 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. 32 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1989 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 f 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 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. Appropriations are legally con- trolled at the departmental level within funds and expenditures may not legally exceed budgeted appropriations at that level. On September 14, 1989, the Village adopted a resolution providing for s upplemental appropriation increases. 33 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1989 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Budgets and Budgetary Accounting (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. Compensated Absences Accumulated unpaid vacation and sick leave amounts are accrued when incurred. In governmental funds, the current liability expected to be liquidated 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 Proprie- tary Fund records its respective share of the liability in total. 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. 34 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1989 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Revenue Recognition Ad Valorem Taxes (Continued) The Village does not accrue property tax revenues since the collection of these taxes coincides with the fiscal year in which levied, and since the Village consistently has no material uncollected property taxes at year end. Investments Investments, consisting ~ of certificates of deposits, U.S. treasury obligations and funds held with the state investment pool are stated at cost or amortized cost, which approximates 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. 35 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1989 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 and Cash Equivalents At year end, the carrying amount of the Village's deposits was $1,155,850 and the bank balance was $1,325,325. Cash consists of unrestricted and restricted funds entirely covered by federal depository insurance or by a collateral pool pledged to the State Treasurer by financial institutions which comply with the require- ments of Florida Statutes and have been designated as a qualified public depository by the State Treasurer. Investments Florida statutes authorize the Village to invest the Local Government Surplus Funds Trust Fund administered by the State Treasurer; negoti- able direct obligations of or obligations unconditionally guaranteed by the U.S. Government; interest-bearing time deposits in financial institutions located in Florida and organized under Federal or Florida laws; obligations of the Federal Farm Credit Banks, the Federal Home Loan Mortgage Corporation, the Federal Home Loan Bank or its district banks, or obligations guaranteed by the Government National Mortgage Association and obligations of the Federal National Mo rtgage Association. Investments (including restricted investments) consist of interest- bearing time deposits, funds held with the state investment pool, obligations of the United States government and amounts held by the Village's agent in a deferred compensation plan. Interest-bearing time deposits and funds held with the state investment pool were entirely covered by Federal depository insurance or by a collateral pool pledged to the State Treasurer by financial institutions which comply with the requirements of Florida Statutes and have been d esignated as a qualified public depository by the State Treasurer. 36 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1989 NOTE 2 - CASH AND INVESTMENTS (Continued) Investments (Continued) 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 $25, 181 . 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 proviaes 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 financial institution's trust depart- ment or agent in the Village's name, or (3) uninsured and unregis- tered for which the securities are held by the broker or dealer, or by its safekeeping department or agent but not in the Village's name . Cate or Carrying Market Amount Value Interest-bearing time deposits $100,000 $ 100,000 $ 100,000 Obligations of United States government 429,819 429,819 423,150 $529,819 529,819 523,150 Investment in: State invest- ment pool 2,850,485 2,850,485 ICMA Retirement Corporation 90,162 90,162 \ $3,470,466 $3,463,797 37 VILLAGE OF TEQUESTA, FLORIQA Notes to Financial Statements September 30, 1989 NOTE 3 - RESTRICTED ASSETS Restricted assets as of September 30, 1989 consist of the following accounts: Cash Meter Deposit Accounts $ 75,2.85 Capital Improvement Accounts 10,630 1985 Bond Accounts Sinking Account 20,352 Bond Amortization Account 101,255 Reserve Account 24,602 Renewal and Replace- ment Account 706 Investments 252,081 Total $232,830 T $ 327,366 281,323 291,953 20,352 429,819 274,271 $1,237,494 531,074 298,873 706 $1,470,324 NOTE 4 - ACCOUNTS RECEIVABLE - ENTERPRISE FUND Accounts receivable of $178,715 are stated net of a $2,000 allowance for doubtful accounts and consist of billed revenues totaling $151,715 and unbilled revenues totaling $29,000. NOTE 5 - COMPONENTS OF FIXED ASSETS A summary of changes in general fixed assets follows: Balance Balance October 1, September 30, 1988 Additions Deletions 1989 Land $ 49,728 $ $ $ 49,728 Buildings 294,333 294,333 Equipment 540,450 66,721 121,022 486,149 Improvements other than buildings 131,050 2,215 __.,._ 133,265 Total $1,015,561 $68,936 $121,022 $963,475 38 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1989 NOTE 5 - COMPONENTS OF FIXED ASSETS (Continued) The components of fixed assets at September 30, 1989 are summarized as follows: General Land Buildings Improvements buildings Machinery and Construction Improvements other than Enterprise Fixed Assets Fund Recount Group Total $ 92,042 $ 49,728 $ - 141,770- 388,592 294,333 682,925 6,929,032 486,149 7,415,181 115,087 133,265 248,352 118,863 118,863 165,000 ~ 165,000 7,808,616 963,475 8,772,091 2,918,531 2,918,531 equipment in progress - idle wells Accumulated depreciation Total $4,890,085 $963,475 $5,853,560 !~ NOTE 6 - DEFINED BENEFIT PENSION PLAN All Village full-time employees participate in the noncontributory Florida Retirement System, a cost-sharing multiple-employer public employee retirement system. The payroll for employees covered by the System for the year ended September 30, 1989 was $1,145,692, which is also the total payroll for the Village. All Village full-time employees are eligible to participate in the System as authorized by Chapter 121 of the Florida Statutes. The Florida Retirement System has four classes of membership. Village employees belong to two of the four classes, the regular class consisting of administrative, operations and clerical employees, and the special risk class consisting of law enforcement officers. Employees who retire at or after age 62 with 10 years of credited service are entitled to a retirement benefit, payable monthly for life, equal to 1.60 to 1.68$ (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 compe?^~;~+~ion is the employee's average of the five highest years of 39 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1989 NOTE 6 - DEFINED BENEFIT PENSION PLAN (Continued) 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 of service. Vested employees may retire at or after age 55 and receive reduced retirement benefits. The System also provides death and disability benefits. Benefits are established by State statute. The Village's actuarially determined contribution requirement for the year ended September 30, 1989 was $170,956. The actual contribution made was $170,956 (General Fund $142,841, Enterprise Fund $28,115). The Village is required by statute to contribute at rates as of September 30, 1989 of 13.9$ of covered payroll far regular class and 17.5 for special risk class. Because this is a non-contributory plan, no employee contributions are required. 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 (the latest available information) for the System as a whole, determined through an actuarial valuation performed as of July 1, 1987, 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. Ten-year historical trend information showing the System's progress in accumulating sufficient assets to pay benefits when due is pre- sented in the System's June 30, 1987 comprehensive annual financial report. 40 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1989 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- f its 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 bzlieves 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 SICK PAY In accordance with Statement 4 of the National Council on Govern- mental Accounting, vacation pay and sick pay are recorded when earned by employees. As of September 30, 1989, the total liability for compensated absences was $92,960. The current liability in the General Fund was $12,176. 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, 1989, the long- term amount was $74,381. The liability recorded by the Enterprise Fund was $6,403. 41 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1989 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 - CONTRACTS PAYABLE AND COMMITMENTS As of September 30, 1989, the Village had the following contracts payable and commitments with respect to unfinished capital projects: Proprietary Fund - Contracts Payable Remaining Construction Expected Date Capital Project Commitment of Completion Emergency Hook-ups $ 2,000 October, 1989 Wate r Treatment Plant Expansion 59,438 January, 1990 South Florida Water Management District Water Use 7,800 February, 1990 Well #8R Improvements 11,625 March, 1990 Emergency Generator 3+8,000 March, 1990 $118,863 ~- Capital Improvement Fund - Commitments Tequesta Drive $171,974 Tequesta Drive Sign & Landscaping 4, 000 Cypress Drive Drainage 1,235 $177,209 ~- ___-_- April, 1990 July, 1990 September, 1990 42 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1989 NOTE 11 - 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 12 - PROJECTS ENTERED INTO WITH OTHER 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, 1989 fire protection and emergency medical service expense was $376,535. NOTE 13 - LONG-TERM DEBT Water Fund: Water Refunding Revenue Bonds, Series 1985 were issued p ursuant 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. 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- s ulting engineer. Finally, any revenues remaining may be used for any lawful purpose. 43 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1989 NOTE 13 - LONG-TERM DEBT (Continued) Water Fund: (Continued) The Resolution requires the establishment of the following accounts: Account Purpose Revenue Account To collect the entire gross revenues derived from the system, except invest- ment earnings. -- Operation and To pay fully accrued operating expenses. Maintenance Account Sinking Account To accumulate sufficient funds to meet annual debt service requirements through transfers from the Revenue Account. Bond Amortization Established within the Sinking Account Account to meet principal payment on the debt. Reserve Account To accumulate funds for payment of principal and interest only if funds in the Sinking Account are insufficient. Renewal and Replacement To accumulate funds for the purpose of Account funding the cost of extensions, addi- tions to, enlargements and replacement of capital assets of the system and emergency repairs thereto. 44 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1989 NOTE 13 - LONG-TERM DEBT (Continued) Water Fund: (Continued) The annual requirements to amortize the debt are as follows: Fiscal Year Ending September 30 1990 1991 1992 1993 1994 1995 1996 1997 Principal $ 40,000 90,OOQ 95,000 105,000 185,000 275,000 300,000 120,000 $ 91, 1.78 187,667 185,749 188,005 259,199 330, 142 330,593 125,340 $1,210,000 $ 487,873 $1,697,873 Interest $ 51,178 97,667 90,749 83,005 74,199 55,142 30,593 5,340 Total The Village is obligated by the securities contract to purchase an aggregate of $980,000 par amount of U.S, Treasury Bonds due February 15, 2007, bearing interest at 7-5/8$, at an aggregate purchase price of $928,323.57. Purchase must be made semi-annually on April 1 and October 1 from April 1, 1985 through October 1, 1993, at semi- annual prices increasing from approximately $33,000 in 1985 to approximately $71,000 in 1993. Neither the U.S. Treasury Bonds nor their income is pledged for payment of the refunding bonds. However, the purchase prices of the Treasury Bonds are added to gross debt service and the income from the Treasury Bonds is subtracted from gross debt service to compute bond service requirements. Required Annual Bond Amortization Account payments to the Trustee of the 85 Series Bonds are as follows: Fiscal Year Ending September 30 Amount 1990 $115,000 1991 120,000 1992 130,000 1993 140,000 1994 75,000 $580,000 45 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1989 NOTE 13 - LONG-TERM DEBT (Continued) General Long-Term Debt: (Continued) 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 Bon s Series ated October 1, 1979, in the amount of $910,000 with interest rates ranging from 8.30_$ to 8.50$. At September 30, 1989, $710,000 of this issue, which consists of term and serial bonds, were outstanding. The guaranteed entitlement portion of state revenue sharing trust f ands, public service utilities taxes, fran- chise fees and occupational license taxes have been pledged. The bonds will be repaid through the Debt Service Fund. Annual requirements to amortize this debt are as follows: Coupon Total October 1, Rate _~ Principal interest Payments 1990 8.30$ $ 30,000 $ 59,580 $ 89,580 1991 8.30 30,000 57,090 87,090 1992 8.40$ 35,000 54,600 89,600 1993 8.40$ 35,000 51,660 86,660 1994 8.40 40,000 48,720 88,720 1995 8.40$ 40,000 45,360 85,360 1996 8.40$ 45,000 42,000 87,000 1997 8.40 45,000 38,220 83,220 1998 8.40$ 50,000 34,440 84,440 1999 8.40$ 55,000 30,240 85,240 2000 8.40$ 55,000 25,620 80,620 2001 8.40$ 60,000 21,000 81,000 2002 8.40$ 65,000 15,960 80,960 2003 8.40$ 70,000.. 10,500 __ 80,500 2004 8.40$ 55,000 4,620 59,620 Totals $710,000 $539,610 $1,249,610 46 VILLAGE OF TEQUESTA, FLORIQA Notes to Financial Statements September 30, 1989 NOTE 13 - LONG-TERM DEBT (Continued) General Long-Term Debt: (Continued) The annual requirements to amortize all outstanding debt including interest payments of $1,027,483 as of September 30, 1989 are as f ollows Fiscal Year Ending Compensated Improvement Water September 30 Absences Revenue Revenue Total 1990 $ $ 89,580 $ 91,178 $ 1808758 1991 87,090 187,667 274,757 1992 89,600 185,749 275,349 1993 86,660 188,005 274,665 1994 88,720 259,199 347,919 1995 85,360 330,142 415,502 1996 87,000 330,593 417,593 1997 83,220 125,340 208,560 1998 84,440 84,440 1999 85,240 85,240 2000 80,620 80,620 2001 81,000 81,000 2002 80,960 80,960 2003 80,500 80,500 2004 59,620 59,620 Various 74,381 74,381 $74,381 $1,249,610 $1,697,873 $3,021,864 Annual maturities of long-term compensated absences cannot be reason- ably determined. 47 VILLAGE OF TEQUESTA, FLORILIA Notes to Financial Statements September 30, 1989 NOTE 13 - 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, 1988 Plus: Addition to compensated absences Less: Bonds retired Long-term debt at September 30, 1989 Interest Expense Improvement Water Compensated Revenue Revenue Absences Bonds Bonds Total $51,826 $735,000 $1,290,000 $2,076,826 22,555 22,555 25,000 80,000 105,000 $74,381 $710,000 $1,210,000 $1,994,381 ~~ Interest expense on long-term debt for the fiscal year ended Septem- ber 30, 1989 totaled $168,360 (general long-term debt - $61,655; Enterprise Fund - $106,705). NOTE 14 - 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, 1989, $8,196,867 of bonds outstanding, including interest, are considered defeased. 48 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1989 NOTE 15 - INTERFUND RECEIVABLES AND PAYABLES Individual fund Interfund receivables and payables at September 30, 1989 are as follows: Fund General Fund Debt Service Fund Capital Projects Fund Enterprise Fund NOTE 16 - INTERFUND ADMINISTRATIVE FEE Interfund Interfund Receivables Payables $ 8,397 $ 813 813 100,000 108,397 $109,210 $109,210 _~ ~~ During the year ended September 30, 1989, the Enterprise Fund remitted $78,540 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 17 - CONTRIBUTED CAPITAL - ENTERPRISE FUND Contributed capital consists of the following: Contributions from capital improvement charges $1,536,019 Contributions from developers 853,687 $2,389,706 For the year ended September 30, 1989, contributions from capital improvement charges totaled $212,980 and contributions from developers totaled $53,000. 49 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1989 NOTE 18 - LITIGATION The Village, in accordance with the normal conduct of its involved in various judgments, claims and litigations. It ed that the final settlement of these matters will not affect the financial statements of the Village. 50 affairs, is is expect- materially VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Revenues - Budget and Actual For the Fiscal Year Ended September 30, 1989 Taxes Current ad valorem taxes Delinquent ad valorem taxes Franchise fees Utility service taxes Total taxes Licenses and permits Professional and occupational 1 icenses 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 Actual $1,496,500 2,700 252,150 398,700 2,150,050 $1,522,364 3,436 248,100 426,025 2,199,925 52,000 110,000 9,000 171, 15,700 129,246 6, 000 1,500 100,000 24,200 205,000 10,355 492,001 28,000 800 850 8,000 800 2, 200 150 40,8 51 77,360 135,087 7,415 15,642 129,216 7,784 2,216 103,346 24,997 202,006 10,352 495,559 17,885 876 1,061 9,874 999 2,073 173 32,9 Variance - Favorable (Unfavorable ) $ 25, 864 736 (4,050) 27,325 49,875 25,360 25,087 (1,585) 48~~ (58) (30) 1,784 716 3,346 797 (2,994) (3) 3,558 (10,115) 76 211 1,874 199 (127) 23 7,85 ) VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Revenues - Budget and Actual For the Fiscal Year Ended September 30, 1989 Fines and forfeits Court fines Parking tickets Total fines and forfeits Miscellaneous revenues Contributions for park land Interest Othe r Police department Total miscellaneous revenues Intragovernmental services Administrative management - wate r fund Variance - Favorable Budget Actual (Unfavorable) $ 50,000 $ 51,100 $ 1,100 250 455 205 0,250 51,555 ~~ 125,338 125,338 70,000 99,287 29,287 1,500 3,769 2,269 100 3,410 3,310 71,600 231,804 160,204 78,540 78,540 Total revenues $3,054,241 $3,310,186 $255,945 52 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1989 General government Legislative Travel and per diem Other charges Books, publications and dues Total legislative Executive Salaries 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 Office machines maintenance Capital outlay Machinery and equiFxnent Total executive Variance - Favorable Budget Actual (Unfavorable) $ 14,200 500 2,830 17,530 $ 12,792 152 2,716 15,660 $ 1,408 348 114 1,870 103,900 8,000 15,000 12,270 2,685 475 8,400 100 2,000 1,700 2,000 1,350 157,880 99,854 7,997 14,266 12,085 2,678 460 7, 501 1, 795 1,676 1,992 1,034 151,338 4,046 3 734 185 7 15 899 100 205 24 8 316 6,542 Financial and administrative Salaries F.I.C.A. Retirement Life and health insurance Worker's compensation insurance Codification 76,000 5,675 10,925 9,900 250 2,075 73,720 5,613 10,470 9,840 2,280 62 455 60 53 247 2,055 3 20 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1989 General government (continued) Financial and administrative (continued) Accounting and auditing Other contractual services Travel and per diem Other charges Office supplies Books, publications, dues Office machines maintenance Capital outlay Machinery and equipment Total financial and admi nistrative Legal counsel Legal services Total legal counsel Planning and zoning Planning service Comprehensive plan revision Charette Postage Printing and binding Total planning and zoning Variance Favorable- Budget Actual (Unfavorable) $ 21,315 $ 21,315 $ 17,480 17,290 190 1,785 1,781 4 400 344 56 3,240 3,233 7 250 197 53 3,300 3,215 85 1,100 1,073 27 153,695 150,393 3,302 59,950 59,935 15 59,950 59,935 15 19,300 19,262 38 45,325 45,312 13 30,400 28,278 2,122 200 200 500 299 201 95,725 93,151 2,574 54 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1989 General government (continued) Other general government Employee recognition program Life and health insurance Employee assistance program Travel and per diem Communication services Postage Utility services Fire hydrant rental fees Leases Insurance Village Hall maintenance Office machines maintenance Printing and binding Other charges Office supplies Books, publications, dues Capital outlay Machinery and equipment Total other general government Total general government Public safety Police department Variance - Favorable Budget Actual (Unfavorable) $ 1,500 $ 1,273 1,650 1,647 650 636 600 253 4,250 4,249 4,200 -4,193 7,250 7,232 11,400 11,400 6,000 5,655 12,800 12,781 10,060 10,057 100 75 650 626 6,700 6,634 5,200 5,144 2,~0 2, 349 227 3 14 347 1 7 18 4,400 4,352 79,810 78,556 564,590 549,033 345 19 3 25 24 66 56 51 48 1,254 15,557 Salaries 527,000 494,833 32,167 Overtime 20,000 15,764 4,236 F.I.C.A. 41,020 39,952 1,068 Retirement 89,350 87,291 2,059 Life and health insurance 59,540 57,946 1,594 55 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1989 Public safety (continued) Police department (continued) Worker's compensation insurance Travel and per diem Communication services Leases Insurance Vehicle maintenance Office equipment maintenance Repairs and maintenance - radio communications Repairs and maintenance - other Printing and binding Other charges Personnel training Office supplies Gasoline and oil Uniforms and equipment Books, publications, dues Capital outlay Machinery and equipment Total police department Protective inspections Salaries F.I.C.A. Retirement Life and health insurance Worker's compensation insurance Code enforcement service Travel and per diem Contractor services Communication services Insurance Variance - Favorable Budget Actual (Unfavorable) $ 22,675 $ 22,382 $ 293 3,050 2,471 579 5,125 4,663 462 860 791 69 19,000 18,979 21 17,000 16,622 378 2,910 2,597 313 2,300 1,925 375 2,100 1,985 115 860 797 63 5,350 3,757 1,593 5,650 .3,650 2,000 5,225 3,775 1,450 22,500 21,583 917 11,550 11,170 380 750 557 193 38,785 42,307 (3,522) 902,600 855,797 46,803 84,600 81,862 2,738 6,375 6,239 136 12,100 11,702 398 12,275 12,172 103 3,750 3,739 11 9,910 9,739 171 4,000 3,782 218 7,050 6,542 508 1,850 1,802 48 950 946 4 56 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1989 Public safety (continued) Variance - Favorable Budget Actual (Unfavorable) Protective inspections (continued) Office machines maintenance $ Vehicle maintenance Printing and binding .Other charges Office supplies Gasoline and oil Books, publications, dues Capital outlay 1,400 $ 1,139 $ 261 500 468 32 1,800 1,438 362 850 233 617 4,400 3,818 582 300 241 59 600 588 12 Machinery and equignent 950 719 Total protective inspections 5 ,6 , Emergency and disaster relief Civil preparedness 500 250 Disaster relief 2,750 590 Total emergency and disaster relief 3,250 840 Fire protection and emergency medical service Public safety department stud Palm Beach County contractual services Total fire protection and emergency medical service Total public safety Physical environment Contractual services - refuse and recycling Total physical environment Transportation Road and street facilities Salaries Overtime F.I.C.A. F~~ K 231 ~, 4~ 250 2,160 2,410 11,500 7,500 4,000 376,535 376,535 ___.~- 388,035 384,035 4,000 1,447,545 1,387,841 59,704 340,500 337,268 3,232 34 ,5 337, y 57 101,000 92,924 8,076 750 34 716 7,500 7,419 81 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1989 Transportation (continued) Road and street facilities (continued) Retirement Life and health insurance Worker's compensation insurance Engineering services Other contractual services Travel and per diem Communication services Street lights Utility service Insurance Vehicle maintenance Drainage maintenance General maintenance Other charges Gasoline and oil - vehicles Small tools Traffic signs Road materials and supplies Uniforms and equipment Books, publications, dues Capital outlay Machinery and equipment Improvements other than buildings - replacement of Royal Palms Variance - Favorable Budget Actual (Unfavorable) 13,875 $ 13,469 $ 406 16,000 15,836 164 5,000 4,996 4 20,000 15,129 4,871 28,610 18,777 9,833 2,100 2,100 1,000 969 31 20,000 19,791 209 9,000 8,035 965 24,000 23,561 439 1,200 1,018 182 5,000 4,558 442 33,500 25,888 7,612 100 85 15 1,350 861 489 500 447 53 5,000 4,599 401 4,000 3,515 485 1,400 1,330 70 250 207 43 12,000 11,270 730 2,900 2,900 Total transportation 316,035 279,718 36,317 58 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1989 Human services Health - mosquito control Variance - Favorable Budget Actual (Unfavorable) Equipment maintenance $ 800 $ 564 $ 236 Flushing solution 150 150 Other charges 50 50 Gasoline and oil 75 75 Personnel training 600 503 97 Operating supplies 50 50 Total human services 1,725 1,067 658 Culture/Recreation Parks and recreation Salaries F.I.C.A. Retirement Life and health insurance Worker's compensation insurance Contractual services Travel and per diem Communication services Utility services Insurance General maintenance Field maintenance Vehicle maintenance Other charges 40,210 36,845 3,365 3,095 3,051 44 5,820 5,643 177 2,350 2,302 48 2,200 2,165 35 3,200 3,055 145 1,800 1,720 80 500 367 133 11,300 11,291 9 2,800 2,621 179 15,000 10,437 4,563 3,400 3,359 41 300 99 '201 200 50 150 59 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1989 Culture/Recreation (continued) Parks and recreation (continued) Office supplies Gasoline and oil - vehicles Small tools and equipment Program expense Books, publications, dues Aid to government organizations Other grants and aids Capital outlay Machinery and equipment Playground park equipment Total culture/recreation Variance - Favorable Budget Actual (Unfavorable) $ 250 $ 201 425 406 600 483 3,700 3,656 250 235 1,300 1,300 7,000 7,000 49 19 117 44 15 4,600 4,518 2,225 2,215 112,525 103,019 82 10 9,506 Total expenditures $2,782,920 $2,657,946 $124,974 60 VILLAGE OF TEQUESTA, FLORIDA Enterprise Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended September 30, 1989 Purchased water Personal services Salaries Overtime F.I.C.A. Retirement Life and health insurance Worker's compensation insurance Employee recognition program Employee assistance program Total personal services Contractual services Insurance Personal services Communication services Rentals Computer program services 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 Heat, light and power Repairs and maintenance Variance - Favorable Budget Actual (Unfavorable) $466,000 $465,375 $ 625 $207,500 $194,276 $ 13,224 7,000 5,408 1,592 15,950 15,464 486 30,800 28,115 2,685 32,800 31,111 1,689 7,100 6,754 346 500 500 1,300 238 1,062 3 ,950 281, 66 ~~,5$~ $ 25,400 $ 24,613 $ 787 6,700 6,689 11 4,700 4,603 97 4,000 3,500 500 8,700 8,649 51 7,500 7,466 34 55-,000 54,814 186 23,200 23,186 14 11,550 10,468 1,082 2,000 1,750 250 78,540 78,540 3,500 1,541 1,959 2 ,790 225,819 4,97 $ 6,450 $ 6,376 $ 74 4,000 3,662 338 35, 71 0 35, 706 4 1,700 1,614 86 2,000 1,853 147 300 202 98 3,000 2,834 166 5 3 , ~5~7 ~9 f ~ $110,200 $108,672 $ 1,528 $13~ 1,240 $124,291 $ 6,949 61 VILLAGE OF TEQUESTA, FLORIDA Enterprise Fund Comparative Summary of Operations For the Fiscal Years Ended September 30, 1989 and 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 Loss on disposal of equipment Total nonoperating revenues Income before operating transfer Operating transfers (out) Net income 1989 1988 $1,896,136 $1,668,127 465,375 281,366 225,819 52,247 108, 672 124,291 297,521 467,952 227,894 158,437 38, 1 17 89,800 84,252 369,990 965 1,555,291 340,845 246,124 (120,982) (32,706) 1,437,407 230,720 166,803 (126,173) 92,436 40,630 433,281 271,350 (150,000) (50,000) $ 283,281 $ 221,350 62 VILLAGE OF TEQUESTA, FLORIDA Enterprise Fund Schedule of Restricted Accounts Under Revenue Bond Ordinance For the Fiscal Year Ended September 30, 1989 Sinking Account Balance, October 1, 1988 Cash and investments $ 4,557 Unamortized discount on investments Accrued interest receivable 504 5,061 Increases Transfers from unrestricted accounts 294,705 Investment earnings 12,531 Transfers from restricted accounts Total 307,236 Decreases Capital outlay Other debt service costs 240 Transfers to other restricted accounts 291,705 Total 291,945 Balance, September 30, 1989 Cash and investments 20,352 Unamortized discount on investments Total $ 20,352 63 Bond Renewal and Amortization Reserve Replacement Account Account Account $413,166 $273,570 $ 21 (19,737) 1,399 393,429 274,969 21 _- -- 40,000 32,645 23,904 105,000 137,645 23,904 40,000 39,315 39,315 556,255 298,873 706 (25,181) $531 , 07_4 $29g_8~ $ 706 64 VILLAGE OF TEQUESTA, FLORIDA Amortization Schedule $1,525,000 Water Refunding Revenue Bonds - Series 1985 September 30, 1989 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, 1989, the outstanding bonds totaled $1,210,000; the payment schedule follows: Due Date Principal Interest Total 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 $1,210,000 $487,873 $1,697,873 65 VILLAGE OF TEQUESTA, FLORIDA Schedule of Changes in Assets and Liabilities - Age ncy Fund For Fiscal Year Ended September 31, 1989 Deferred Balance Compensation October 1, Fund 1988 Additions Deductions Balance September 30, 1989 Assets Investments $76,330 $13,832 $90,162 Liabilities Deferred compensation payable $76,330 r~ $13,832 $90,162 66 VILLAGE OF TEQUESTA, FLORIDiA Schedule of General Fixed Assets By Source September 30, 1989 General fixed assets Land $ 49,728 Building and improvements 294,333 Equipment 486, 149 Improvements other than buildings 133,265 Total general fixed assets $963,475 Investment in general fixed assets General Fund revenue $963,475 Total investment in general fixed assets $963,475 67 VILLAGE OF TEQUESTA, FLORIDA Schedule of General Fixed Assets By Function September 30, 1989 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 $ 304,769 $35,000 $207,393 $ 62,376 217,506 14,180 203,326 186,829 7,713 179,116 6,020 6,020 133,707 14,728 83,668 35,311 848,831 49,728 114,644 $ 963,475 $49,728 312,954 486,149 114,644 $427,598 $486,149 68 VILLAGE OF TBQ(ESTA, FIARI[A Schedule of Crianges in General Fixed Assets By Function September 30, 1989 General General Fixed Assets Inter- Fixed Assets October 1, Departmental September 30, Function 1988 Additions Deletions Transfers 1989 General government- $ 316,010 $ 6,459 $ 17,700 $ $304,769 P~lic safety 258,546 44,473 85,513 217,506 Transportation 79,469 11,271 96,089 186,829 Human services 4,810 1,210 6,020 Culture recreation 123,329 6,733 3,645 133,707 782,164 68,936 103,213 100,944 848,831 Prior to allocation by fun coon 233,397 17,809 (100,944) 114,644 $1,015,561 $ 68,936 $121,022 $ $963,475 69 GENERAL LONG-TERM DEBT VILLAGE OF TEQUESTA, FLORIAA Amortization Schedule Improvement Revenue Bonds - Series 1979 September 30, 1989 The debt was incurred on April 1, 1980, $910,000 improvement revenue bonds. The paving and drainage improvements. On outstanding bonds totaled $710,000: Coupon October 1, Rate Principal through the issuance of proceeds were used for September 30, 1989, the Total Interest Payments 1990 8.30$ $ 30,000 $ 59,580 $ 89,580 1991 8.30$ 30,000 57,090 87,090 1992 8.40$ 35,000 54,600 89,600 1993 8.40$ 35,000 51,660 86,660 1994 8.40$ 40,000 48,720 88,720 1995 8.40$ 40,000 45,360 85,360 1996 8.40$ 45,000 42,_000 87,000 1997 8.40$ 45,000 38,220 83,220 1998 8.40$ 50,000 34,440 84,440 1999 8.40$ 55,000 30,240 85,240 2000 8.40$ 55,000 25,620 80,620 2001 8.40 60,000 21,000 81,000 2002 8.40$ 65,000 15,960 80,960 2003 8.40$ 70,000 10,500 80,500 2004 8.40$ 55,000 4,620 59,620 Totals $710,000 $539,610 $1,249,610 70 ALL FUNDS VILLAGE OF TEQUESTA, FLORIDA Schedule of Investments - All Funds September 30, 1989 Enterprise Fund Bond Amortization Account Enterprise Fund United States Treasu~ Obli ations Unamortized nterest Maturity Par-Value Cost Discount Rate Date ~_ $455,000 $426,989 $25,181 7.625 2/15/07 Meter deposits account Retained earnings account Reserve account Capital improvement account General Fund Capital Projects Fund Debt Service Fund State Board of Administration Interest Amounts Rate $ 252,081 Various 1,284,663 Various 274,271 Various 281,323 Various 555,972 Various 202,175 Various Certificates of Deposit Interest Maturity Amounts Rate Date $100,000 11.00$ 4/01/90 71 VILLAGE OF TEQUESTA, FLORIDA Schedule of Insurance September 30, 1989 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 BA0014609-03 $1,000,000 Public Employees Blanket Bond 30157954 $100,000 Public Official Bond 30158137 $100,000 Workmen's Compensation WC0099946-00 $500,000 Multi-peril Policy SCAMP623045 $1,000,000 Public Official's Liability PO831403 $1,000,000 Police Professional Liability 88-010-87 $1,100,000 Umbrella Liability XC41942 $1,000,000 Unlawful and Intentional Death Policy (Police Department Personnel, death resulting from an intentional and illegal act) DGA-725328 $50,000 72 THIS PAGE INTENTIONALLY LEFT BLANK VILLAGE OF TEQUESTA, FLORIDA General Revenues by Source (Unaudited) (1) Last Ten Fiscal Years Fi scal Year Ended September 30 Taxes (3) Licenses and Permits 1980 $ 736,789 60,366 1981 893,403 75,221 1982 991,734 74,325 1983 1,014,020 95,964 1984 1,129,107 113,982 1985 1,777,305 102,894 1986 1,729,412 104,014 1987 1,881,171 123,303 1988 2,143,933 170,834 1989 2,199,925 219,862 (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. 73 Charges for Fines and Intergovernmental Services Forfeits Miscellaneous(2) Total $237,467 $ 7,874 $11,891 $ 45,767 $1,100,154 249,224 8,178 18,573 124,152 1,368,751 200,916 8,200 23,574 98,081 1,396,830 283,130 9,463 32,455 99,601 1,534,633 335,899 8,807 48,783 107,163 1,743,741 348,936 9,023 43,330 144,301 2,425,789 385,952 11,869 42,929 151,640 2,425,816 421,385 8,880 51,126 123,140 2,609,005 568,091 19,562 53,034 166,547 3,122,001 701,112 32,941 51,555 338,392 3,543,787 74 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 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 1989 603,396 1,387,841 900,405 (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. 75 Culture Physical Human and Debt Environment Services Recreation Service Total $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 91,299 1,662,742 206,776 10,907 121,847 89,603 2,109,153 240,507 5,768 120,204 87,896 2,262,547 278,752 2,907 111,146 91,215 2,520,768 308,215 502 111,466 89,350 2,916,900 337,268 1,067 103,019 86,905 3,419,901 76 VILLAGE OF TEQUESTA, FLORIDA Property Tax Levies and Collections (Unaudited) {1) Last Ten Fiscal Years Percent of Fiscal Year Total Current Tax Percent Outstanding Delinquent Ended Tax Levy Collections of Levy Delinquent Taxes to September 30 (1) (1) Collected Taxes Tax Levy 1980 $ 410,854 $ 407,931 99.3 $ 2,923 .7 1981 534,655 531,676 99.4 2,979 .6 1982 569,277 558,068 98.0 11,209 2.0 1983 550,573 540,876 98.2 9,697 1.8 1984 641,179 636,533 99.3 4,646 .7 1985 1,038,027 1,037,003 99.9 1,024 .1 1986 1,129,458 1,128,128 99.9 1,330 .1 1987 1,255,399 1,252,073 99.7 3,326 .3 1988 1,501,241 1,496,727 99.7 4,514 .3 1989 1,527,891 1,522,364 99.6 5,527 .4 (1) Includes discounts taken by property taxpayers. Source: Palm Beach County Tax Collector's office. 77 THIS PAGE INTENTIONALLY LEFT BLANK VILLAGE OF TEQUESTA, FLORIDA Taxable Value and Just Value of Taxable Property (Unaudited) Last Ten Fiscal Years Fiscal Year Ended September 30 1980 1 981 1982 1983 1984 1985 1986 1987 1988 1989 Real Pro ert Taxa e Value Just Value $108,755,676 146,062,451 200,770,160 199,394,093 206,001,538 219,001,538 233,658,151 257,766,850 262,373,925 290,375,566 $118,734,404 212,663,476 237,918,493 243,749,997 262,247,858 275,901,415 297,370,052 324,296,888 329,524,860 366,488,883 Source: Palm Beach County Property Appraiser's office. 78 Personal Property Taxab e Just Value Value $ 8,036,976 8,576,046 9,434,287 10,410,095 11,333,640 10,902,190 10,812,334 11,547,658 12,052,258 14,685,689 $11,774,601 12,847,602 9,856,038 10,943,311 11,916,171 11,562,981 11,562,008 12,241,396 12,977,252 15,755,728 Total Taxa a Just Value Value $116,792,652 154,638,497 210,204,447 209,804,188 218,153,678 229,903,728 244,470,485 269,314,508 274,426,183 305,061,255 $130,509,005 225,511,078 247,774,531 254,693,308 274,164,029 287,464,396 308,932,060 336,718,284 342,502,112 382,244,611 Ratio Taxab a Value To Just Value 89$ 69$ 85~ 82$ 80$ 80$ 79$ 80$ 80$ 80$ 79 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 1980 4.0540 6.3170 7.0200 .3620 1981 5.0430 7.3227 8.6300 .4008 1982 2.9839 4.9361 6.9192 .3707 1983 2.6762 4.1823 6.1331 .3261 1984 3.1506 4.2489 6.9329 .3526 1985 4.9200 4.1836 7.1720 .3525 1986 5.0867 4.5271 7.2280 .3428 1987 5.3126 4.6190 7.5950 .3951 1988 5.7510 4.7862 8.1580 .9075 1989 5.7510 5.0562 8.4620 .9137 (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. 80 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 .4420 .1850 1.7049 20.0849 .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) 18.5462 .4970 .1979 (2) .0670 .0923 20.4569 .5470 .1920 (2) .0395 .1537 21.1151 81 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 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 1989 4,479 305,061,255 * Source: Palm Beach County Planning Board, University of Florida Estimates and Federal Census, and Village Building Department 82 Debt Ratio of Net Gross Service Net Bonded Debt Net Bonded Bonded Monies Bonded to Assessed Debt Debt Available Debt Value Per Capita $895,000 $147,650 $747,350 .64 5202.81 880,000 102,751 777,249 .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 .22 140.08 710,000 121,839 588,161 .19 131.32 83 VILLAGE OF TEQUESTA, FLORIDA Legal Debt Margin (Unaudited) September 30, 1989 The Village of Tequesta, Florida has no legal debt margin. 84 VILLAGE OF TEQUESTA, FLORIDA Computation of Direct and Overlapping Debt (Unaudited) September 30, 1989 Percentage Amount Applicable Applicable Net Debt To To Taxing Authority Outstanding Tequesta Tequesta . Village of Tequesta $ 588, 161 1 00.00$ $ 588, 161 Palm Beach County 175,855,000 .78$ 1,371,669 Palm Beach County School Board 303,245,000 .78$ 2,365,311 Total $4,325,141 Source: Above Government Entities 85 VILLAGE OF TEQUESTA, FLORIDA Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures (Unaudited) Last Ten Fiscal Years Ratio of Debt Total Service to Fiscal Year Total General Total Ended Debt Expenditures General September 30 Principal Interest Service (1) Expenditures 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 1989 25,000 61,905 86,905 3,419,901 2.5 (1) Includes General, Special Revenue, Debt Service and Capital Projects Funds . 86 VILLAGE OF TEQUESTA, FLORIDA Revenue Bond Coverage Water Bonds (Unaudited) Last Ten Fiscal Years Fi scal Year Net Revenue Ended Gross Operating Available for September 30 Revenues Expenses Debt Service 1980 $1,088,504 $ 659,326 $ 429,178 1981 1,207,659 752,255 455,404 1982 1,249,423 745,584 503,839 1983 1,245,749 804,402 441,347 1984 1,349,576 982,883 366,693 1985 1,566,884 1,239,255 327,629 1986 1,620,609 1,310,250 310,359 1987 1,760,534 1,434,538 325,996 1988 1,834,930 1,437,407 397,523 1989 2,142,260 1,555,291 586,969 (1) Represents net debt service costs per a securities contract requiring the Village to purchase an aggregate of $980,000 par amount of U.S. Treasury Bonds due February 15, 2007, bearing interest at 7-5/8$, at an aggregate purchase price of $928,324. The purchase price of the Treasury Bonds is added to the gross debt service and the income from the Treasury Bonds is subtracted from gross debt service to compute Bond Service Requirements. 87 Debt Service Requirements Debt Amortization Service Principal Interest Account (1) Total Coverage $ -0- $275,948 $ -0- $275,948 1.55 -0- 274,759 -0- 274,759 2.65 -0- 275,090 -0- 275,090 1.83 -0- 275,252 -0- 275,252 1.60 -0- 276,344 -0- 276,344 1.33 25,000 223,139 34,035 242,274 1.35 65,000 134,421 58,857 258,278 1.20 70,000 132,919 54,427 257,346 1.27 75,000 112,036 73,210 260,246 1.53 80,000 106,705 66,911 253,616 2.31 88 VILLAGE OF TEQUESTA, FLORIDA Property Value, Construction and Bank Deposits (Unaudited) Last Seven Fiscal Years Commercial Residential Construction (1) Construction(1) Property Value(3) u er Nu er Fiscal of of Bank Real Personal Year Units Value Units Value Deposits (2) Property Property 1983 2 $ 687,754 39 $5,535,834 $270,278,000 $243,749,997 $10,943,311 1984 3 329,567 50 4,366,966 232,803,399 206,820,038 11,333,640 1985 9 4,692,681 33 2,106,652 224,302,732 219,001,538 10,902,190 1986 2 828,435 5 484,135 272,519,953 233,658,151 10,812,334 1987 1 116,250 27 2,717,154 269,494,041 257,766,850 11,547,658 1988 6 6,803,410 24 3,358,458 294,073,604 329,524,860 12,052,258 1989 6 1,615,526 18 2,694,552 289,305,649 366,488,883 15,755,728 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. 89 VILLAGE OF TEQUESTA, FLORIDA Principal Taxpayers (Unaudited) September 30, 1989 Percentage 1988 of Assessed Assessed Taxpayers Type of Business Valuation Valuation County Line Plaza (Tequesta Associates - Limited Partnership) Shopping Center $12,486,526 3.51$ Dorner Properties (Bank of Palm Beach Undeveloped & Trust Company Real Estate 12,142,726 3.318 Lighthouse Plaza (Lighthouse Plaza Associates, Ltd.) Shopping Center 8,340,868 2.28$ Tequesta Shoppes, Ltd. (R. Haisfield Enterprises) Shopping Center 6,295,810 1.72$ Barnett Bank (First National Bank of Jupiter/Tequesta) Banking 3,314,308 .908 Tequesta Plaza (Fehlhaber Corporation) Shopping Center 3,036,500 .838 Tequesta Fashion Mall {Edwin J. Nelson) Shopping Center 3,026,321 .828 Tequesta Country Club Golf/Social Club 2,018,672 .558 Richard Haisfield Residential Developer (Sub-division) 2,007,450 .548 Teque sta Corporate Center (Tequesta Corp. Professional Center Partners) Office Building 2,568,374 .438 TOTAL $55,237,555 Source: Palm Beach County Property Appraiser's Office 90 VILLAGE OF TEQUESTA, FLORIDA Miscellaneous Statistics (Unaudited) September 30, 1989 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 44 lane miles Fire •Protection: Provided by - Palm Beach County Fire Insurance Rating - 6 Police Protection: Number of stations - 1 Number of certified officers - 16 Number of dispatchers - 4 Municipal Water Department: Number of customers - 4,244 Average daily consumption - 2.633 million gallons Miles of water mains - 43 miles Sanitary Sewage: Service provided by Loxahatchee River Environmental Control District (ENCON) 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: 794 Recreation and Culture: Number of parks - 4, approximately 52 acres Number of libraries - 1, branch of Palm Beach County system Number of volumes - 15,000-20,000 Municipal Employees: Full-time - 49 91 VILLAGE OF TEQUESTA, FLORIDiA Demographic Statistics (Unaudited) Last Ten Fiscal Years (And as Available) Education Level in Years of Fiscal Population Per Capita Median Formal Unemployment Year (1) Income (2) Age (2) Schooling (2) Rate (3) 1 $3,685 $ 49.7 13.7 7.2 1981 3,750 19,072 8.4 1982 3,828 10.9 1983 3,810 20,169 12.1 1984 3,870 9.1 1985 3,928 8.8 1986 4,077 5.9 1987 4,141 7.7 1988 4,448 7.2 1989 4,479 8.4 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. 92 NOWLEN, HOLT & MINER, P.A. CElITi1ED PUBLIC ACCOIM7AKTs t ~ s Fr=T>i STREET suITE too POST OFFICE BOx 3a ~ WEST PALM BEACH, FLOtODA 33x02.9909 TELEPMOI~ (~07) •s9-3060 FAX 107) 035.0625 EVERETT 6 NOWLEN. CPA II p30-~ yeai • E WEEKS. CPA ROlEIIT W NELMRE9CN. C-A ~ EDWARD T NOL1. CPA KATNIfEN A. MINER, CPA TEIrt1' L MORTON. JI„ OA ALAN WTR{IfE Of WILLIAM B MMER, CDA KY NATCI~R 6EAUMONT, CPA N RONALD 6EMIET'f. C-A CER11tED PI~C A~TANTS R09ERT YV MENDRIx JR CPA MARiYN R06ERT5. CPA RlJTN ANN A$MMEAD. CPA FLORA ~E Oi JANET R BARK EVICH CDA R ORE00RY SMITH CPA J MCMAEL STEVENS. CPA CERTFEO PII~JC ACCOUNTANTS MA~RA AMORETTI[',OS$. CPA ACCOUNTS F~ A8000IATED MC BEiIF 61/IQ ORiCE 9J3 S.E. ~IIO STREET INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL P~os7o~+cESOxs36 STRUCTURE RELATED MATTERS NOTED IN A FINANCIAI?E~°~•nO"DA33'70~~ T~-IDNE Isor) oae-se,z STATEMENT AUDIT CONDUCTED IN ACCORDANCE WITH cA><I~o7la~~se GOVERNMENT AUDITING STANDARDS 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 September 30, 1989 and have issued our report thereon dated December 15, 1989. We conducted our audit in accordance with generally accepted auditing standards and Government Auditin Standards, issued by the Comp- troller General o t e Unite States. T ose standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. In planning and performing our audit of the general purpose financial statements of the Village of Tequesta for the year ended September 30, 1989, we considered its internal control structure in order to determine our auditing procedures ,for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure. The management of the Village of Tequesta is responsible for estab- lishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transac- tions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose finan- cial statements in accordance with generally acr~epted accounting principles. Because of inherent limitations in any internal control 93 structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deterio- rate. For the purpose of this report, we have classified the significant internal control structure policies and procedures in the following categories: Cash and cash equivalents Investments Receivables Inventory Property and equipment Payables and accrued liabilities Debt Fund balance Cash receipts/revenues Cash disbursements/purchases Payroll For all of the control categories listed above, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk. Under standards established by the American Institute of Certified Public Accountants, reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements. A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control structure would not necessarily disclose all matters in t he internal control structure that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. We noted, however, certain matters involving the internal control structure and its operation that we consider to be reportable conditions, and which we believe to be material weaknesses: 94 Segregation of Duties There is inadequate separation of duties in all the control cycles. Our recommendations regarding the above condition, as well as other matters involving the internal control structure and its operations we noted, have been reported to the management of the Village of Tequesta and are contained in Appendix A. This report is intended for the information of management and Village Council. This restriction is not intended to limit the distribution of this report, which is a matter of public record. December 15, 1989 95 NOWLEN, HOLT do MINER. P.A. CERTIFS=D Pusuc AOCOIJ1r1TA1~Rs 21 s F{FTH STREET 4~xrE goo POST OFFICE sOX 347 YVEST PALM 4EACMI, FLORIDA 33402•o98i TELEPHONE 1407) 460-3080 FAX 1407) 438.0825 EVERETT B HOWLEN. CPA 1 ~ 930-19x11 S E WEEKS. CPA ROBERT W. IIElAl1EICH, CPA 1~ EDWARD T MOLT. CPA KAT}NFEl1 A. MIPER, CPA TERR1~ 1. MORTON..NI.. OA AMERICAII M41IRiTE OF WLUAAI B MNER, CPA KW MATCHER 4EAUMONT. CPA N RONAID 4ENNE1'T. CPA CEiITFEO PIAL~ 11A~l1fTANTB ROBERT W MENDRIX. JR .CPA MAR~rM R04ERTS. CPA RUTH ANN ABFMiEAD, CPA F1.ORDA NeTIME OF JANET R BARICEVICM CPA R OREdORY SMfTH. CPA J MICHAEL STEVEN. CPA CERTFEp P1AC ACCOUNTANTS MAYRA AMORETTF008S. CPA ACCOlN/T!q F/\i! ASSOCIATED NC 4BIE O~ADE OFFICE INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH "'~~bid~ PosT oFFCE 4ox ~s LAWS AND REGULATIONS BASED ON AN AUDIT OF EELtt1IEI10E.Fil01~A30g0~0378 FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WIZ'~~'O~,N.~'_ GOVERNMENT AUDITING STANDARDS ISSUED BY THE GAO The Honorable Mayor and Village Council Village of Tequesta, Florida We have audited the general purpose financial statements of the Village of Tequesta, Florida as of and for the year ended September 30, 1989, and have issued our report thereon dated December 15, 1989. We conducted our audit in accordance with generally accepted auditing standards and Government Auditin Standards, issued by the Comp- troller General o t e Unite States. T ose standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. Compliance with laws, regulations, contracts, and grants applicable to the Village of Tequesta, Florida is the responsibility of the Village's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Village of Teque sta's compliance with certain provisions of laws, regulations, contracts, and grants. However, it should be noted that our objective was not to provide an opinion on overall compliance with such provisions. The results of our tests indicate that, with respect to the items tested, the Village of Tequesta complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Village of Tequesta had not complied, in all material respects, with those provisions. 96 We noted certain immaterial instances of noncompliance that wee have reported to the management of the Village of Tequesta and are con- tained in Appendix A. This report is intended for the information of management and Village Council. This restriction is not intended to limit the distribution of this report, which is a matter of public record. December 15, 1989 97 VILLAGE OF TEQUESTA, FLORIDA STATUTORY REPORT 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. 98 APPENDIX A: STATEMENT OF COMMENTS AND RECOMMENDATIONS PRIOR YEAR COMMENTS WHICH CONTINUE TO APPLY Segregation 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 con- trol cycles are being carried out in compliance with prescribed standards. 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. CURRENT YEAR COMMENTS Accounts Receivable There is an improper cutoff of accounts receivable collections in the water department. We recommend that all cash received be recorded as of the date received. Authorized Signors We noted that bank records were not updated to remove former commissioners as authorized signors on bank accounts. We recommend new signature cards be filed with the bank each time there is a change in officers or commissioners. 99 CURRENT YEAR COMMENTS (Continued) Procedural Manual The financial administration procedure guide has not been updated since June, 1984. We recommend that the guide be reviewed and updated so that procedures are adequately documented and available as a point of reference for employees. 100