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CAFR_FY Ending_09/30/1990No Text VILLAGE OF TEQUESTA Post Office Box 3273 • 357 Tequesta Dri~~e Tequesta, Florida 33469-0273 • (407 575-6200 FAX: (407) S75-ti?03 November 26, 1990 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, 1990, 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 organizational chart and a list of principal officials. The financial section includes the general purpose 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 and cultural events; and the operation of a municipal water supply system, in addition to general government activities. The Village also contracts with Palm Beach County for fire-rescue service, and a privately owned sanitation company for garbage and refuse service. 1 Recycled Paper ECONOMIC CONDITION AND OQTLOOE The Village is located at the northeastern boundary of Palm Beach County. Tequesta is a relatively affluent residential community with adequate commercial facilities necessary to provide goods and services to its residents. Northern Palm Beach County ranks as one of the top growth areas in the country, and the economic condition and outlook of the governments growth potential for the next decade is excellent. Dwq F'isQa~l Year .;190 the Village adopted a preliminary plan for development of a "Town Center Master Plan" for a 90-acre area located in the center of the Village commercial business district. The plan provides for the construction of residential, cultural and commercial building within the area. Infrastructure improvements for the area, to include roads and drainage, are proposed to be constructed by a special taxing district. Infrastructure financing is anticipated to be provided by the issuance of 20-year special assessment bonds. Property values have increased an average of 10.8$ a year during the past 5 years. The anticipated development of the Town Center Master Plan should result in municipal property values increasing at a substantially greater pace than recently experienced. Based on the historical data presented and current projections, property tax values are expected to continue to increase through this decade. Since infrastructure is in place to accommodate the growth anticipated within the Village, significant ad valorem tax increases during this period are not anticipated. 1dAJOR INITIATIOEB The Village is continuing to address three specific areas of concern: Expansion of Transportation Corridors Expansion of Potable Water Treatment Facilities Expansion of Storm Water Drainage Facilities Maintenance and expansion of the community's general infrastructure (such as roads, bridges, sidewalks and storm water drainage systems) remain a concern of the Village. To address this concern, the government has developed a five-year capital projects plan that provides a framework for the development and maintenance of infrastructure to meet current and future needs. 2 This plan is revised each budget year. As a result of projected revenue shortfalls anticipated for next year, projects budgeted within the Capital Improvement Fund may be deferred to offset such revenue shortfalls and enable the Village to maintain adequate cash reserves and required fund balances. During the year the construction phase of widening Tequesta Drive, the main east-west thoroughfare within the Village, was completed at a cost of $832,138. Ten percent construction retainage and right-of-way condemnation and associated expenses remain to be paid, such expenses are estimated to total $290,000. Funding is available within the Capital Improvement Fund for these remaining expenses. Other Capital Improvement Fund expenditures included $13,535 for drainage improvements, $4,225 for landscape signage improvements and $32,425 for pathway improvements. Capital Outlay expenditures reported in the Proprietary Fund for 1990 totaled $296,577. A summary of these expenditures is reported below. During this fiscal period staff personnel devoted a considerable amount of time to planning future water system expansion projects and to the selection of a professional engineering f irm for the design and construction phases of the water department expansion program. Included in next year's budget is $178,400 for relocation of water mains, $990,500 for four new surficial aquifer wells and transmission lines and $750,000 for a two million gallon above-ground water storage tank. The additional storage tank will increase the water storage capacity to 3.75 million gallons. 1990 Capital Outlay Expenditures Equipment System Replacements $37,465 New Emergency Generator 33.400 $ 70,865 Improvements Tequesta Drive W/M Relocation 45,216 Telemetry System for Wells 43,614 Emergency W/L Connections 1,212 Treatment Plant Site-Plan 5,227 Treatment Plant Expansion Project 89,004 Well 8-R Improvements 5,226 SFWMD Permitting 15,480 Capping Abandoned Wells 19,453 Computer Programming Services 1,280 225,712 Total Capital Outlay Expenditures 296 77 3 FINANCIAL INFORMATION Management of the government 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 designed 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, Special Revenue Funds, 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 appropriated 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 re- appropriated 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. General Government Functions Revenues The following schedule presents a summary of General Fund, Special Revenue Fund, Debt Service Fund and Capital Projects Fund revenues for the fiscal year ended September 30, 1990 and the amount and percentage of increases and decreases in relation to prior year revenues. 4 VILLAGE OF TEQUESTA, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT September 30, 1990 TABLE OF CONTENTS (Continued) Page um Statistical Section (Continued) Ratio of Annual Debt Service Bonded Debt to Total Gener; Revenue Bond Coverage--Water Property Value, Construction Principal Taxpayers Miscellaneous Statistics Demographic Statistics Expenditures for General 31 Expenditures 91 Bonds 92-93 and Bank Deposits 94 95 96 97 Other Reports Independent Auditor's Report on Internal Control Structure 98-100 Independent Auditor's Report on Compliance with Laws and Regulations 101-102 Statutory Report 103 Appendix A: Statement of Comments and Recommendations 104-105 VILLAGE OF TEQUESTA, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT September 30, 1990 TABLE OF CONTENTS (Continued) Page Number Financial Section (continued) Proprietary Fund (Enterprise Fund) Schedule of Operating Expenses--Budget and Actual 66 Comparative Summary of Operations--Fiscal Years Ended September 30, 1990 and 1989 67 Schedule of Restricted Accounts Under Revenue Bond Ordinance 68-69 Amortization Schedule--Water Refunding Revenue Bonds - Series 1985 70 Fiduciary Fund Schedule of Changes in Assets and Liabilities -- Agency Fund 71 General Fixed Assets Schedule of General Fixed Assets by Source 72 Schedule of General Fixed Assets by Function 73 Schedule of Changes in General Fixed Assets By Function 74 General Lonq-Term Debt Amortization Schedule--Improvement Revenue Bonds - Series 1979 75 All Funds Schedule of Investments 76 Schedule of Insurance 77 Statistical Section General Revenues by Source 78-79 General Government Expenditures by Function 80-81 Property Tax Levies and Collections 82 Taxable Value and Just Value of Taxable Property 83-84 Property Tax Rates--All Direct and Overlapping Governments 85-86 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita 87-88 Legal Debt Margin 89 Computation of Direct and Overlapping Debt 90 VILLAGE OF TEQUESTA, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT September 30, 1990 TABLE OF CONTENTS Page Number Introductory Section Letter of Transmittal 1-11 Certificate of Achievement for Excellence in Financial Reporting 12 Village of Tequesta Organization Chart 13 List of Principal Officials 14 Financial Section Independent Auditor's Report 15-16 General Purpose Financial Statements Combined Balance Sheet--All Fund Types and Account Groups 17-20 Combined Statement of Revenues, Expenditures and Changes in Fund Balances--All Governmental Fund Types 21-22 Combined Statement of Revenues, Expenditures and Changes in Fund Balances--Budget and Actual-- Governmental Fund Types 23-26 Statement of Revenues, Expenses and Changes in Retained Earnings--Proprietary Fund Type 27 Statement of Cash Flows--Proprietary Fund Type 28 Notes to Financial Statements 29-54 Supplemental Information General Fund Schedule of Revenues--Budget and Actual 55-56 Schedule of Departmental Expenditures-- Budget and Actual 57-64 Special Revenue Fund Schedule of Revenues--Budget and Actual 65 COMPREHENSIVE ANNUAL FINANCIAL REPORT VILLAGE OF TEQUESTA, FLORIDA September 30, 1990 Prepared by the Finance Department Percent Increase of Percent (Decrease) Increase Amount of Total „From 1989 SDecrease) Taxes $2,485,814 63.65$ $285,889 12.99$ Licenses & Permits 190,743 4.88 (29,119) (13.24) Intergovernmental 872,494 22.35 171,382 24.44 Charges for Services 14,146 .36 (18,795) (57.05) Fines & Forfeitures 37,903 .98 (13,652) (26.48) Investment Income 137,076 3.50 8,928 7.65 Miscellaneous 67,151 1.72 (64,553) (49.33) Intragovernmental Services 100,000 2.56 21,460 7.3 Total Revenues S3,905,327 00.00 361 54 0.20 Taxes accounted for the most significant increase i n actual revenues received for 1990. Tax revenues consi st of three distinct resources: ad valorem property tax, franchise fees and utility service taxes. The ad valorem property tax rate for 1990 was 6.1828 mills, an increase of 7.5$ over the previous year millage rate of 5.7510 mills. Also, the Village taxable value increased 16.1$ over the previous year taxable value. These two factors are responsible for the increase in tax revenues. The property tax rate of 6.1828 mills is well within the ten mill rate limit imposed by the State of Florida; moreover, the Village provided its citizens garbage and refuse service and fire rescue service from ad valorem property tax revenues. If the cost of these services were removed from the Village's property tax rate, and billed separately, as is the practice in most Florida municipalities, the Village's property tax millage rate would have been reduced $942,088 or 51.26$ to 3.0135 mills. Intergovernmental revenues represents the second major source of revenues and also ranked second in the amount of increased revenues for 1990. Intergovernmental revenue sources consist of State and County levied taxes, i.e., County half-cent sales tax, County six cent gas tax, State excise tax on cigarette sales and alcoholic beverage licenses fees and County and State grants and reimbursements for qualifying projects. Of the $171,382 increase in revenues, $144,447 was attributed to reimbursement from Palm Beach County Government for County impact fees for the Tequesta Drive Widening Improvement Project. A reimbursement from Palm Beach County Government for E-911 emergency communication service equipment accounted for $18,284, and the remaining $8,651 was the resultant of revenue variances of the remaining sources of revenues. 5 ~xpeaditures The following schedule presents a summary of General Fund, Special Revenue Fund, Debt Service Fund, and Capital Projects Fund expenditures for the fiscal year ended September 30, 1990, and the amount and percentage of increases and decreases in relation to prior year amounts: Percent Increase of Percent (Decrease) Increase Amount of Total From 1989 ,(Decrease Current: General Government $ 671,631 15.83$ $122,598 22.32 Public Safety 1,725,165 40.68 337,324 24.30 Physical Environment 437,236 10.30 99,968 29.64 Transportation 324,135 7.65 44,417 15.87 Human Services 930 .02 (137) (12.83) Culture & Recreation 110,989 2.61 7,970 7.73 Capital Outlay 882,323 20.80 207,273 30.70 Debt Service Principal 30,000 .70 5,000 20.00 Interest and Fiscal Charges 60,082 1.41 L,823) ~_ Total Expenditures $4,242,491 100.00 822 590 4.05 Significant increases reported for 1990 that warrant discussion include capital outlay expenditures of the Capital Improvement Fund, and operating expenditure increases within the General Fund for Physical Environment, Public Safety and General Government operations. The capital outlay increased expenditures of 30.70$ or $207,273 is attributed to expenditures for the Tequesta Drive Widening Project discussed previously in this letter. Physical Environment increased expenditures were the result of a 38$ increase in refuse disposal tipping fees enacted by the County Solid Waste Authority and a 4.5$ COLA adjustment required per the government franchise agreement with Nichols Sanitation for residential garbage/refuse service. As a result of the recent increases associated with garbage/refuse and recycling services, beginning next year residents will be billed for garbage/refuse and recycling services by the Village and the County Solid Waste Authority, which will result with the expenditures for such services being removed from the General Fund operating expenses. During 1990, the Village commenced its single family residential recycling program at no charge to residents. 6 Public Safety increased expenditures of $337,324 or 24.30$ were attributed to an increase of $128,317 or 34$ for Fire Rescue Services provided to the Village per a governmental contract with the County Fire-Rescue Department. The remaining increase in expenditures of $209,007 are the result of the addition of one employee, (Deputy Building Official) within the Building Department and increased employee expenses for COLA and merit pay adjustments averaging 7.5$, increased employee retirement contributions of 13$ and an employee health insurance premium increase of 15$. General Government increased expenditures of $122,598 or 22.32$ were attributed to capital outlay expenditures of $57,141 for County Road 707 Beautification Project, an increase in fees for legal services of $22,677 and the balance of $42,780 was the result of increased employee benefit expenses referred to previously. General Fund Balances The fund balance of the General Fund was $743,067 on September 30, 1990, of this total $18,952 was designated for encumbrances. The resultant cash position of $724,115 is more than adequate to provide the capital resources necessary for government operations. The likelihood of the government entering the short- term debt market to pay for current operating expenditures is highly remote. Proprietary Operations The Village's proprietary water operations are reported in the Enterprise Fund. The Village potable water system consists of a 2.7 million gallon per day water treatment plant and a distribution system of approximately 50 miles of water mains and water storage facilities with a capacity of 1.75 million gallons. The Village also purchases 1.5 million gallons of water per day, contracted minimum, at wholesale rates, from the Town of Jupiter, Florida. The current agreement extends through July 15, 2006. During the last quarter of fiscal year 1989, the Village Council adopted a tiered water consumption rate schedule to promote water conservation within the areas serviced by the Village water system. As shown in the following schedule, the tiered rate schedule had the effect of reducing water consumption during 1990 by 99.416 million gallons or (10.34$), and the premium charged for water sales, per the tiered rate schedule, produced increased revenues of $76,007 or 4.10$. 7 Revenues and Increase Percent of Water Consumption 1990 1989 (Decrease) Increase 1,000 Gallons Amount Amount From 1989 (Decrease1 Water Sales $1,929,978 $1,853,971 $76,007 4.10$ Total Water Consumption 861,571 960,987 (99,416) (10.34) Average Daily Consumption 2.360 2.632 (.272) (10.34) The Enterprise Fund income and expense data for 1990 is shown in the following schedule. Income and Expenses Operating Revenues $1,963,238 Operating Expenses 1,604,403 Operating Income 358,835 Non-Operating Revenues (expenses) (79,538) Income before Operating transfer 279,297 Operating transfer out (55,004) Net Income S 224,297 Enterprise Fund Bonded Debt On January 1, 1985, the Village issued $1,525,000 Water Refunding ,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, 1990, $1,125,000 of the bonds remained outstanding. Fiduciary Operations The Village's fiduciary operations consist of an Agency Fund used to account for investments held by the government as trustee for employees participating in a deferred compensation plan administered by the ICMA Retirement System. 8 Debt Administration The Debt Service Fund is used to account for the accumulation of resources for the payment of general long-term debt principal, interest and related costs. The General Lonq-Term Debt Account Group is used to account for long-term liabilities expected 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, 1990, $680,000 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, 1990, the Village's net bonded debt was $552,083, the ratio of net bonded debt to taxable value was 16$ and the net bonded debt per capita was $122.71. dash Manacrement The Village maintains two pooled cash accounts known as the 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 requirements 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 maximize 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 ranging from 30 to 365 days, money market accounts and deposits with the State Board of Administration - Local Government Surplus Funds Trust Fund Investment Pool. Investments 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. 9 On September 30, 1990, investments held by the Village totaled $4,083,361, which is detailed in Note 2, Notes to Financial Statements. The average yield on investments maturing during the year was 8.25$ and the average yield on money market investment accounts was 5.25$. ~tisk Management During 1990, the Village continued using third-party insurance coverage for its Risk Management Program. Also during the year, the government distributed MSDA - Material Safety Data Sheets, in accordance with the 1986 Congressional 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 Independent Audit State Statutes require an certified public accountants. The & Miner, P.A., CPA's, was selected The auditor's report on the genera 1 included in the financial section annual audit by independent accounting firm of Nowlen, Holt to conduct the Village audit. purpose financial statements is of this report. wa ds 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, 1989. This was the eighth consecutive year that the Village has received this prestigious 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 requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. 10 Acknowledgements The preparation of the Comprehensive Annual Financial Report on a timely basis was made possible by the dedicated service of 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, / ~ ~. Thomas G. Bradford Village Manager ~~ . Bill C. K scavelis Finance irector 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, 1989 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. f GFF~ ~~Cy~ t~ ~ ~' ,I+~h~ td~ 'fit ~~iy.,,,_~~~..J1~M W IIO~ ~" ~iC~C11t ~ CMAO~ ~ Executive Director 12 VILLAGE OF TEQUESTA ORGANIZATION CHART r w VILLAGE OF TEQUESTA, FLORIDA Council - l[anager Form of Government VILLAGE COIINCIL - 1989-1990 Joseph N. Capretta Ron T. Mackail William E. Burckart Edward C. Howell Earl L. Collings Mayor Vice-Mayor Councilmember Councilmember Councilmember VILLAGE OFFICIALS Thomas G. Bradford John C. Randolph (Jones, Foster, Johnston & Stubbs, P.A.) Bill C. Kascavelis Carl R. Roderick Scott D. Ladd Gary Preston Thomas C. Hall Manager Attorney Finance Director/Clerk Police Chief Building Official Director, Public Works & Recreation Water System Manager INDEPENDENT CERTIFIED POBLIC ACCOIINTANTS Nowlen, Holt & Miner, P.A. 14 NOWLEN, HOLT & MINER, P.A. cEAT~EO PUBLIC ACCOUM7AM3 2~s FFTH sTr~EEr 91xrE 200 POST OFFICE eOX 3s7 YVEST PALfrI BEACH. FLOFIIDA 33102-0317 rEt.Er~loNE ~107~ eso-3oeo FAx 110» ass-oe2e EVEAETT e. wow~e+. cPA (I aaa l ~~ IN1TllEBI ~ MtIER CPA w: RpMID eEMEIT, CPA r~mBEns MEACMI MSTiIUTE OF EowARO r. ++o~r. CAA I<•f fNTdER BEAIAIONr. CPA R{RM AAN A4ME110. CPA CEAT~ED P1~1C ACOOU!lrAMTB Wl1LW B. NHER. CPA YIA1ti1?I ROBERTS. CPA ~. MC-NEL IIEVENS, CPA FLO/~A f/ST1T111'E Oi ROBERT W. hEWOi~C A. CIA R. ~OORY SifTM. CPA MAYRA ANORETIFOOBIS. CPA CHITFED PUBLIC AOOOUNTAKI3 JNET R. BAlrCENCN, CPA ROBER- W. -BIAAHCM, CPA ROBN A. KOCE]Jt0. C-A ACC~RfTlq RIN~IS ABBOCMTED NC. TERRY L YO/ROf~ Jl. CPA Bifi1F OLAOE OFFICE ~ B.E ?ad dT1lEET PCBT OFFICE eaoc J3B PEORIA YStJ0 0~~ BELLE OI ADE ~ . L TEiFRglE N071 K66H2 INDEPENDENT AUDITOR'S REPORT FAX (107) iY612N The Honorable Mayor and Village Council Village of Tequesta Tec~~xesta, Florida We have audited the accompanying general purpose financial statements of the Village of Tequesta, Florida, as of September 30, 1990 as listed in the table of contents. 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 statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the 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, fn all material aspects, the financial position of the Village of Tequesta, Florida, as of September 30, 1990, and the results of its operations and the cash flows of its proprietary fund type for the year then ended in conformity with generally accepted accounting principles. 15 P,s discussed in Note 21 to the financial statements, the Village of Tequesta, Florida has presented a statement of cash flows for the year ended September 30, 1990, rather than a statement of changes in financial position. We have also reviewed the accounting requirements of the bond ordinances associated with both the Improvement Revenue Bonds, Series 1979 and Water Refunding Revenue Bonds, Series 1985, relating to the benefits 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 nonaccountinq nature. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The supplemental 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. "Ylaw~. ,IS.0,~~1. o. vVl~ ~• d . November 26, 1990 16 GENERAL PURPOSE FINANCIAL STATEMENTS VILLAGE OF TEQUESTA, FLORIDA Combined Balance Sheet - All Fund Types and Account Groups September 30, 1990 Governmental Fund Tvues Special Debt Capital General Revenue Service Pro~ect~ Assets Cash and cash equivalents $ 28,209 $ 54,389 $ 12,991 $119,18 Cash with fiscal agent 29,790 Investments 833,465 114,113 151,00 Receivables Accounts (net of allowance for uncollectibles) 3,360 81 Accrued interest Due from other funds 9,317 813 32,42 Due from other governments 18,296 Inventories of supplies 735 Unamortized debt issue costs Restricted assets .~..,. Cas..~ Investments Fixed assets Amount available in debt service fund Amount to be provided for retirement of general long-term debt Total assets S 884.065 63 787 157 707 3 6 17 Proprietary Fiduciary Fund Tv~e __ Fund Tme F.n erprise Aqency $ 406,388 $ 1,500,901 105,587 Account Groups General General Fixed Lonq-Term Assets Debt Totals (Memorandum Only) $ ~ 621, 163 ~, 29, 790 ~ 2,705,066 213,509 216,950 479 479 42,559 18,296 20,753 21,488 50,273 50,273 95 391 ~ ~_ 295, 391 1,378,295 4 666 846 ~ ~ ,,~.w. ' 8,2 950,989 5,617,835. 127,917 127,917 628.310 628.310 58.532.835 105 7 950 989 756 227 51.753.812 (Continued) 18 VILLAGE OF TEQUESTA FLORIDA Combined Balance Sheet - All Fund es and Account Groups September 30, 1 0 (Continued) Liabilities and fund equity Liabilities Accounts ppaYgb~e, Accrued ~ia ilities Matured nterest payable Payable from restricted assets Deposits Due to other funds Due to other governments Deferred revenue Deferred compensation payable Contracts ayable Improvement revenue bonds ayable Wa~er refunding revenue bonds payable Unamort'zea cleft discount Other lab litres Total liabilities Fund equity Invgstments in general fixed assets Cont ibuted c pital Reta~ned earn~ngs Reserved fo revenue bond debt serv~ce Unreserved Fund balances Reserved for: Inventory,of supplies Debt service __ Recreation and parks Encumbrances Unres rued Designated for: Subsequent year's expenditures Debi service Undesignated Total fund equity Total liab}litres and fund equity G vernmental Fund Tunes _ Special Debt Cap}tal General ev nu Service Project: $ 20;267 $ $ 29,790 33.158 2,228 36,319 140,998 735 112,679 18,952 $ 72,09. 2,771 36,319 29,790 74.87! 87,090 227,741 16,055 40,827 610,701 11.413 x,067 27.468 127,917 227.74 S 884,065 63 787 515~7v 302 61 19 Proprietary Fiduciary Fund Tvne fund Type Account Grou s enera enera Fixed Lonq-Term Enterprise Agency Assets Debt $ 23,793 $ 3,380 169,967 9,317 1,780 14,166 105,587 63,208 1,125,000 (22,875) 5,420 1,393,156 105587 $ $ 76,227 680,000 756.227 2,706,657 1, 048, 631' 3,384,391 7,139.679 58,532,835 105 587 950,989 950.989 950 989 756 227 Totals (Memorandum Only) $ 180,993 99,874 29,790 169,967 42,559 4,716 52,713 105,587 63,208 680,000 1,125,000 (22,875) 5,420 2.536.952 950,989 2,706,657 1,048,631 3,384,391 735 87,090 112,679 246,692 16,055 40,827 622,114 9,216.860 $11.753,812 See notes to financial statements. 20 VILLAGE OF TEQUESTA, FLORIDA Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - All Governmental Fund Types For the Fiscal Year Ended September 30, 1990 Revenues Taxes Licenses and permits Intergovernmental revenues Charges for services Fines and forfeits Investment income Miscellaneous revenues Intergovernmental services Total revenues Expenditures Current General government Public safety Physical environment Transportation Human services Culture/recreation Capital outlay Debt service Principal retirement Interest Fiscal charges General $1,802,423 117,279 393,278 14,146 37,903 103,731 45,451 100,000 2614,211 671,631 1,725,165 437,236 324,135 930 110,989 Total expenditures 3,270,086 Excess of revenues over (under) expenditures X655,875) Other financing sources (uses) Operating transfers in 840,000 Operating transfers out (307,625) Total other financing sources (uses) 532,375 Excess of revenues and other sources over (under) expenditures and other uses (123,500) Fund balances, October 1, 1989 866,567 Fund balances, September 30, 1990 ~ 743,067 21 Governmental Fund Types Totals Special Debt Capital (Memorandum Revenue Service Projects Only) $ 683,391 $ $ $ 2,485,814 73,464 190,743 129,216 350,000 872,494 14,146 37,903 1b,160 17,185 137,076 21,700 67,151 100.000 886,071 16.160 3881885 3.905,327 671,631 1,725,165 437,236 324,135 930 110,989 882,323 882,323 30,000 30,000 59,580 59,580 502 502 90.082 882.323 4,242,491 886,071 L73.922) (493,438) (3371164) 80,000 362,625 1,282,625 (920,000) (1,227,625) (920.000) 80.000 362,625 55.-000 (33,929) 6,078 (130,813) (282,164) 61397 121.839 358,553 1.408.356 $ 27.468 127 917 $ 227,740 $ 1.126,192 See notes to financial statements. 22 VILLAGE OF TEQUESTA, FLORIDA Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Governmental Fund Types For the Fiscal Year Ended September 30, 1990 Revenues Taxes Licenses and permits Intergovernmental revenues Charges for services Fines and forfeits Investment income Miscellaneous revenues Intragovernmental services Total revenues Expenditures Current General government Publ}c safety Physical environment Transportation Human services Culture/recreation Capital outlay Debt service Principal retirement Interest Fiscal charges Total expenditures Excess of revenues over (under) expenditures -Other financing sources (uses) Operating transfers in Operating transfers out Total other financing sources (uses) Excess of revenues and other source over (under) expenditures and other uses Fund balances, October 1, 1989 Fund balances, September 30, 1990 General Fund ar ance - Favorable Budget Actual lUnfavorable $1217; 750 369,305 37,500 50,350 50,000 1, 650 100.000 $1117;279 393,278 14,146 37,903 103,731 45,451 100,000 $ 37,707 (100,471; 23,973 (23,354) (12,447) 53,731 43,801 2,666,685 2.614.211 (52,x}74) 685,334 1,795,977 439,500 360,250 4,915 126,121 671,631 1,725,165 437,236 324,930 110,989 13,703 70, 812 2,264 36,115 3,985 15,132 3,412,097 3.270,086 (745,412) ( 55,875) 795,000 840,000 (275.200) (~ 07,625) 519,800 532,375 S (225.612) (123,500) 866,567 S 743,067 23 142,011 89,537 45,000 (,'2.425) 12,575 1 12 Special Revenue Fund Debt Service Fund ariance - ariance - Favorable Favorable Budctet Actual Unfavorable) Budqet Actual (Unfavorable) $ 654,300 $ 683,391 $ 29,091 $ $ $ 75,000 73,464 (1,536 129,246 129,216 (30 7,500 16,160 8,660 858.546 886,071 27,525 7.500 16.160 8.660 858.546 886.071 27.525 59 580 59 580 X775 X502 273 90,355 90,082 273 (82,855) (73,922) 8,,933 80,000 80,000 (900,000) j920,000) (20.000) (900,000) (920,000) (20,000) 80,000 80,000 S (41,454) (33,929) S 7.525 61.397 S 27.468 $ (2.855) 6,078 $ 8.933 121,839 127,917 (Continued) 24 VILLAGE OF TEQUESTA, FLORIDA Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Governmental Fund Types For the Fiscal Year Ended September 30, 1990 (Continued) Revenues T xes L~censes and permits Intergovernmental revenues Charges for services Fines and forfeits Investment income Miscellaneous revenues Intragovernmental services Total revenues E enditures ~urrent General government Public safety Physical environment Transportation Human services Culture/recreation Capital outlay Debt service Principal retirement Interest Fiscal charges Total expenditures Excess o revenues over (under) expend tares Capital Projects Fund ariance - Favorable Budget Actual jUnfavorable) $ $ $ 350,000 350,000 2, 500 21700 21700 ~ , 352.500 388 `, 8i~5 36, 385 1,117,024 882,323 234,701 x.117,024 882,323 234,701 (764.524) X493,438) 271,086 Other financing sources (uses) ' Operat nq transfers in ~ 409,800 362,625 (47,175) Operat nq transfers out Total other financing sources (uses) 409,800 362,625 (47,175) Excess of revenues and other sources over (under) expenditures and other uses S (354,724) (130,813) S 223,911 Fund balances, October 1, 1989 358,553 Fund balances, September 30, 1990 S 227,740 25 $ 2,494,430 292,750 848,551 37,500 50,350 60,000 1,650 100.000 3.885.231 685,334 1,795,977 439,500 360,250 4,915 126,121 1,117,024 30,000 59.775 4._619.476 (734.245) 1,284,800 (1.170 (624.645) Actual $ 2'190;743 872,494 14,146 37,903 137,076 67,151 100.000 3.905,327 671,631 1,725,165 437,236 324.930 110,989 882,323 30,000 59-50~ 4.242.49 (337.164) 1,282,625 (~ 227.625) (282,164) 1.408.356 1.126,192 variance - Favorable SUnfavorable) $(102;007; 23,943 (23,354) (12,447) 77,076 65,501 20.096 13,703 70,812 2,264 36,115 3,985 15,132 234,701 273 37_ 397.081 ((2,175 (52_ ((5~) 342 4 1 See notes to financial statements. 26 VILLAGE OF TEQUESTA, FLORIDA Statement of Revenues, Expenses and Changes in Retained Earnings Proprietary Fund Type For the Fiscal Year Ended September 30, 1990 Operating revenues Charges for services Operating expenses Purchased water Personal services Contractual services Supplies Heat, light and power Repairs and maintenance Depreciation Capital outlay Total operating expenses Operating income Nonoperating revenues (expenses) Investment income Interest expense and fiscal charges Loss on disposal of equipment Well abandonment Total nonoperatinq revenues (expenses) Income before operating transfers Operating transfers (out) Net income Retained earnings, October 1, 1989 Retained earnings, September 30, 1990 Proprietary Fund Tvpe Enterprise ~ $1.963,238 467,571 366,074 221, 141 36,778 88,467 105,733 310,661 7,978 1,604,403 358.835 K 244,209 (114,259) (2,205) _ (207,283) _(79,538) 279,297 (55.000) 224,297 4,208,725 $4,433.022 See notes to financial statements. 27 VILLAGE OF TEQUESTA, FLORIDA Statement of Cash Flows - Proprietary Fund Type For the Fiscal Year Ended September 30, 1990 Proprietary Fund Tune Enterprise Cash flows from operating activities: Net o eratin income t t i ~ $ 358,835 ncome o Adjus ments o reconcile operating net cash provided by operating activities: Depreciation 310,661 Changes in assets and liabilities: (Increase) decrease in: Accounts receivable (34,794) Inventories (3,698) Increase (decrease) in: Accounts payable (11,444) 455 1 Accrued liabilities , Decrease in deposits 15,051 Deferred revenue 14,166 Other liabilities 1,952 Net cash provided by operating activities 652,184 Cash flows from noncapital financing activities: Decrease in due to other funds 99,080 Operating transfer to other fund 5 00 Net cash used for noncapital financing activities (154,080) Cash flows from capital and related financing activities: Capital contributions 316,951 Acquisition of fixed assets (296,577 Principal paid on revenue bond maturities (85,000 Interest paid on revenue bonds (100,855 Fiscal charges paid on revenue bonds (1,542 Reduction of contracts payable X55,655 Net cash used for capital and related financing activities (222.678) Cash flows from investing activities: Proceeds from redemption of investments 497,271 Purchase of investments (852,844) Interest received on investments 243,975 Net cash used for investing activities (111.598) Net increase in cash and cash equivalents 163,828 Cash and cash equivalents, October 1, 1989 537.951 Cash and cash equivalents, September 30, 1990 $ 701,779 See notes to financial statements. 28 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1990 NOTB 1 - StT1~IARY OF BIQNIFICANT ACCOIINTINa POLICIES The Re rting 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 (GABS), the basic, but not the only, criterion for including a potential component unit within the reporting 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 selection 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 potential component units for inclusion or exclusion from the reporting entity is the existence of special financing relationships, regardless 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. 29 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1990 NOTE 1 - BQMMARY OF BIaNIFICAZI'1' ACCOONTINa POLICIFB (Continued) Basis of Presentation - Fund Accounting The accounts of the Village are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund axe 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 accountabili- ty for certain assets and liabilities that are not recorded in funds because they do not directly affect net expendable avail- able financial resources. 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. Special Revenue Fund The Special Revenue Fund is used to account for specific revenue sources that are legally restricted to expenditure for specified purposes. The Special Revenue Fund of the Village accumulates all franchise fees, utility taxes, state revenue sharing and occupational licenses as required by the Improve- ment Revenue Bonds, Series 1979. 30 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1990 TOTS i - 8II1rII~IARY OF BIONIFICANT ACCOIINTIr/O POLICISB (Continued) psis of Presentation - Fund Accountinv (Continued) ~vernmental Fund Tvp,~s (Continued) Debt Service Fund The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, long-term debt princi- pal, interest, and related costs. The Debt Service Fund of the Village accumulates monies for payment of the Improvement Revenue 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 Tyne Enterprise Fund The Enterprise Fund is used to account for operations that are financed and operated fn 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 activi- ties necessary to provide such services are accounted for in this fund including, but not limited to, administration, operations, maintenance, financing and related debt service and billing and collection. 31 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1990 NOTE 1 - 8OM1I~Y OF BIQNIFICANT ACCOIINTINa POLICIES (Continued) Bass of Presentation - Fund Accountinc (Continued) Proprietary Fund Tvve (Continued) Enterprise Fund (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 opera- tions. Accumulated depreciation is reported on the propri- etary fund balance sheet. Depreciation has been provided over the estimated useful lives using the straight-line method. The estimated useful lives are as follows: Buildings 40 years Improvements 20 - 25 years Equipment 4 - 10 years ~'iduciarv Fund Tvpg Agency Fund The Agency Fund is used to account for assets held by the Village in a trustee capacity or as an agent for individ- uals. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. 32 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1990 NOTB 1 BDMMARY O? BIQNIFICANT ACCOIINTING POLICI$8 (Continued) 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 liabili- ties are generally included on their balance sheets. Their reported fund balance (net current assets) is considered a measure of "available spendable resources." Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable 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 consisting 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 f 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. 33 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1990 rO.jP Bmnra~v ng BICiNIFICANT ACCOONTINa POLICIBB (Continued) Bas's of Pr sentation - Fund Accounting (Continued) Account Groups (Continued) 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. 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. 34 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1990 '1'8 1 - SOI~II~ARY OF SIGNIFICANT ACCOONTING POLICIES (Continued) sis of Accounting (Continued) 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. ~'ota•1 Columns on Combined Statements The Total columns on the combined statements are captioned "Memorandum 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. ets end Budvetarv Accountin Formal budgetary integration is employed as a management control device during the year for the General Fund, Special Revenue Fund, Debt Service Fund and Capital Projects Fund. The Finance Depart- ment also maintains control over expenditures of the debt service fund through the use of bond indenture provisions. Budgets for the General, Special Revenue, Debt Service and Capital Projects Funds are adopted on a basis consistent with generally accepted accounting principles. For budgeting purposes, current year encumbrances are not treated as expenditures. The Village follows these procedures in establishing the budgetary data reflected in the financial statements: 1. Prior to September 1, the Village Manager submits to the Village Council a proposed operating budget for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. 35 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1990 OTg 1 - 8Ol~II~IARY OF 8 t~gets and Budge~y 2. Public hearings ments. 3. Prior to October passage of a rep ZGNIFICANT ACCOIINTING POLICISB (Continued) Accounting (Continued) are conducted to obtain taxpayer com- 1, the budget is legally enacted through solution. 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 controlled at the departmental level within funds and expenditures may not legally exceed budgeted appropriations at that level. On May 10, 1990, the Village adopted a resolution providing for supplemental appropriation increases. Budget amounts as amended are reflected in the general purpose financial statements. The Village has complied with the Florida requirement that budgets be in balance. The General Fund, Special Revenue, Debt Service Fund and Capital Projects Fund budgets reflected in the accompany- ing financial statements are not balanced because they do not include amounts budgeted from the beginning fund balance. A budget for operating expenses of the Enterprise Fund (Water Fund) is also legally adopted on a basis consistent with generally accepted accounting principles in accordance with requirements of Ordinance 260-Water Refunding Revenue Bonds, Series 1985. Appropriations lapse at the end of the fiscal year. Encumbrance accounting is used for purposes of budgetary control. Encumbrances outstanding at year end are reported as reservations of fund balances until expended or accrued as a liability of the fund. 36 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1990 Y OF SIQNIFICANT PiCCOQNTIN(i POLICIES (Continued) Investments, consisting of 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 invento- ries 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. 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 discount. At September 30, unpaid delinquent taxes, if any, are reflected as a receivable on the balance sheet and are fully reserved. 37 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1990 NOT$ 1 - BUNMARY OF SIQNIFICANT ACCOUNTING POLICIES (Continued) Revenue Recocrnition (Continued) Ad Valorem Taxes (Continued) The Village does not accrue property tax revenues since the collection of these taxes coincides with the fiscal year in which levied, and since the Village consistently has no material uncollected property taxes at year end. Intergovernmental Revenue Intergovernmental revenues are reported under the legal and contractual requirements of the individual programs. In certain programs, such as State Revenue Sharing, revenue is recognized when it is measurable and avail- able. Other Revenues Other revenues, such as franchise fees and utility taxes, licenses and permits, charges for services, fines and forfeits, and miscellaneous revenues are recognized when received in cash because they generally are not measur- able until then. Investment income is recognized when earned at which time it is considered measurable and available. rnterfund 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 operat- ing transfers in and out. 38 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1990 OF BIaNIFICANT l~CCOIINTINQ POLICISB (Continued) ance The portion of the fund balance reserved for recreation and parks represents the amount of funds received for recreational improve- ments and park land which are not yet expended. 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. Statement of Cash Flows For purposes of the statement of cash flows, the proprietary fund considers all highly liquid investments (including restricted assets) with a maturity of three months or less when purchased to be cash equivalents, except for those investments which management intends to be long-term investments. 8 dash and Cash Equivalents At year end, the carrying amount of the Village's deposits was $916,004 and the bank balance was $860,100. Cash consists of unrestricted and restricted funds entirely covered by federal depository insurance or by a multiple financial institution collateral pool that insures public deposits. The collateral pool exists pursuant to the Florida Security for Deposits Act, Chap- ter 280, which consists of assets pledged to the State Treasurer by financial institutions that comply with the requirements of Florida Statutes and have been thereby designated as a qualified public depository. These deposits are deemed to be insured for risk categorization purposes. 39 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1990 TB 2 - CASH AND Z~TVSBTbIENTB (Continued) vestments Florida statutes authorize the Village to invest the Local Government Surplus Funds Trust Fund administered by the State Treasurer; negotiable direct obligations of or obligations unconditionally guaranteed by the U.S. Government; interest-bearing time deposits 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 Mortgage Association. Investments (including restricted investments) consist of 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. The government held funds during the year in interest-bearing time deposits which were entirely covered by federal depository insurance or by a multiple financial institution collateral pool. 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 treasury bonds are recorded net of unamortized discount of $27,482. 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. Funds withheld from employees are invested in a Guaranteed Fund which provides contracts guaranteeing both protection of principal and a rate of return for a-specific period of time and protection from default by underwriters. Funds are invested at the discretion of individual plan participants. The Village's investments are categorized as either (1) insured or registered or for which the securities are held by the Village or its agent in the Village's name, (2) uninsured and unregistered for which the securities are held by the financial institution's trust department or agent in the Village's name, or (3) uninsured and unregistered for which the securities are held by the broker or dealer, or by its safekeeping department or agent but not in the Village's name. 40 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1990 NOTE Z - CABB AND INVEBTMENTB (Continued) Investments (Continued) Obligations of United States government Investment in: State investment pool ICMA Retirement Corporation Category Carrying Market 1 Amount Value 87 5 $ 487,518 $ 456,259 105.587 S4.083.361 3,490,256 3,490,256 105.587 S4.052.102 T~OTB 3 - RBBTRZCTED ASSBTS Restricted assets as of September 30, 1990 consist of the following accounts: Meter Deposit Accounts Capital Improvement Accounts 1985 Bond Accounts: Sinking Account Bond Amortization Account Reserve Account Renewal and Replace- ment Account Cash Investments Total $ 25,002 $ 144,965 $ 169,967 24,-228 430,860 455,088 4,948 204,480 24,284 5,637 497,853 298,980 10,585 702,333 323,264 12.449 12.449 295 91 S1.378.295 S1.673.686 41 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1990 1~iO?B 4 ACCOONTB RSCBIVABLB g~'BRPRIBB FIIND Accounts receivable of $213,509 are stated net of a $2,000 allowance for doubtful accounts and consist of billed revenues totaling $163,589 and unbilled revenues totaling $51,920. 1+1O?B 5 - CO~IP08 OF PIEBD A88BTB A summary of changes in general fixed assets follows: Balance Balance October 1, September 30, 1989 Additions Deletions 1990 Land $ 49,728 $ $ $ 49,728 Buildings 294,333 294,333 Improvements other than buildings 133,265 133,265 Equipment 486.149 86 96 99.451 473,663 963 475 86 965 99 451 950 989 The components of fixed assets at September 30, 1990 are summarized as follows: General Enterprise Fixed Assets Fund Account Group Total Land $ 92,042 $ 49,728 $ 141,770 Buildings 388,592 294,333 682,925 Improvements other than buildings 6,557,139 133,265 6,690,404 Machinery and equipment 178,211 473,663 651,874 Construction in 208 63 63,208 progress , Improvements - 250 104 idle wells 104,250 , 7,383,442 950,989 8,334,431 Accumulated depreciation 2.716,596 _ 2,716.596 Total 54.666,846 950 989 55,617,835 42 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1990 SI 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, 1990 was $1,340,747, which is also the total payroll for the Village. All Village full-time employees are eligible to participate in the System as authorized by Chapter 121 of the Florida Statutes. The Florida Retirement System has five classes of membership. Village employees belong to three of the five classes, the senior management service class (Village Manager), the regular class consisting of administrative, operations and clerical employees, and the special risk class consisting of law enforcement officers. Employees who retire at or after age 62 with 10 years of credited service are entitled to a retirement benefit, payable monthly for life, equal to 2.0$ (senior management class), 1.60 to 1.68$ (regular class) and 2.2 to 3.0~ (special risk class) of their average final compensation for each year of credited service, depending on the years served. Average final compensation is the employee's average of the five highest years of credited service, 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, 1990 was $223,627. The actual contribution made was $223,627 (General Fund $185,110, Enterprise Fund $38,517). The contribution equaled 16.68$ of current covered payroll. The Village is required by statute to contribute at rates as of September 30, 1990 of 16.04 of covered payroll for senior management, 14.66 of covered payroll for regular class and 19.90 for special risk class. Because this is a non-contributory plan, no employee contributions are required. 43 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1990 !IO"PB 6 - DElINBD BBNBFIT PENSION PLAN (Continued) 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 measurements of assets and pension benefit obligation for individual employers. The pension benefit obligation at July 1, 1989 (the latest available information) for the System as a whole, determined through an actuarial valuation performed as of July 1, 1989, was $27.4 billion. The System's net assets available for benefits on that date (valued at market) were $17.6 billion, leaving an unfunded pension benefit obligation of $9.8 billion. The total current-year actuarially determined contribution requirement for all employers is not available. Ten-year historical trend information showing the System's progress in accumulating sufficient assets to pay benefits when due is pre- sented in the System's June 30, 1988 comprehensive annual financial report. 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 compensa- tion 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 attribut- able 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 benefits 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. 44 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1990 ~OTB 7 - DEF8RR8D COMPENSATION PLAN (Continued) It is the opinion of the Village that it has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The Village believes that is unlikely that it will use the assets to satisfy the claims of general creditors in the future. 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, 1990, the total liability for compensated absences was $105,027. The current liability in the General Fund was $20,000. 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, 1990, the long-term amount was $76,227. The liability recorded by the Enterprise Fund was $8,800. The Village presently has no material lease commitments. In addi- tion, the Village has no commitments under lease purchase or similar contractual arrangements. As of September 30, 1990, the Village had the following contracts payable and commitments with respect to unfinished capital projects: 45 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1990 NOTB 10 - CONTRACTS PAYAHLB AND COM~IITKBNTB (Continued) Remaining Project Capital Project Commitment Water Main Engineering $ 4,743 Water Main Relocation 13,571 Telemetry - Remote Sites 43,614 Computer Program Service 1.280 63 0 ~Frietarv Fund - Commitments Expected Date of Completion January, 1991 September, 1991 March, 1991 October, 1990 Remaining Construction Expected Date Capital Project Commitment of Completion Storage Tank & Wells Project: Storage tank $ 50,000 December, 1991 Well #24 72,400 March, 1992 Wells #25, #26, #27 97.600 June, 1992 522 dpi tat Improvement Fund - Commitments Remaining Construction Q,~pital Project Commitment Tequesta Drive Improvement $235,166 Tequesta Drive Streetscape 1,621 Tequesta Drive Pathway 73.160 309 947 Expected Date of Completion December, 1991 December, 1991 December, 1991 46 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1990 On July 15, 1976, the Village entered into an agreement with Tri- Southern Utilities Company, Inc. (the agreement subsequently assumed by the Town of Jupiter) to purchase water for the Village's water systea for a period of 30 years. Rates for water service are based on wholesale rates. The Village is billed monthly based upon a 1,500,000 gallons per day contracted minimum. NOT$ 12 - PROJECTS B~iTERED Iri'1'O l1ITH OTHER GOVERNMENTAL IINITB On August 15, 1984, the Village entered into an interlocal agreement between Palm Beach County and various other municipali- ties for services to be rendered by the Palm Beach County Fire Rescue Department to said municipalities for a fee. For the year ended September 30, 1990 fire protection and emergency medical service expense was $504,852. EB Water Refunding Revenue Bonds, Series 1985 were issued pursuant to Resolution 2-84/85 enacted by the Village Council on October 23, 1984, for a total principal amount of $1,525,000. Resolution 2-84/85 provides for the disposition of all revenues derived from the operation of the water system. Revenues are first to be used for payment of all current operating expenses. Revenues are next to be used for the required payments for principal and interest on, and reserve for, the outstanding water refunding revenue bonds. Revenues are next to be used to maintain the renewal, replacement and improvement of the water system. Such payments to the renewal and replacement fund are made monthly equal to one-twelfth of the estimated annual cost of extensions, additions to, enlargements and replacement of capital assets of the system and emergency repairs thereto, such cost to be established by recommendation of the con- sulting engineer. Finally, any revenues remaining may be used for any lawful purpose. 47 VILLAGE OF TEQUESTA, FIARIDA Notes to Financial Statements September 30, 1990 NOTE 13 - IANQ-TERN DEBT (Continued) hater F~Ld (Continued) The Resolution requires the establishment of the following accounts: Revenue Account Operation and Maintenance Account Sinking Account Bond Amortization Account Reserve Account Renewal and Replacement Account purpose To collect the entire gross revenues derived from the system, except investment earnings. To pay fully accrued operating expenses. To accumulate sufficient funds to meet annual debt service requirements through transfers from the Revenue Account. Established within the Sinking Account to meet principal payment on the debt. To accumulate funds for payment of principal and interest only if funds in the Sinking Account are insuffi- cient. To accumulate funds for the purpose of funding the cost of extensions, additions to, enlargements and replacement of capital assets of the system and emergency repairs thereto. 48 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1990 ~LOTB 13 - LONG-TSR1[ DEBT (Continued) Water Fund (Continued) The annual requirements to amortize the debt are as follows: Fiscal Year Ending _ September 30 Principal I nterest Total 1991 $ 45,000 $ 47,990 $ 92,990 1992 95,000 90,749 185,749 1993 105,000 83,005 188,005 1994 185,000 74,199 259,199 1995 275,000 55,142 330,142 1996 300,000 30,593 330,593 1997 120.000 5.340 125.340 S1.125.000 S 387,018 S1.512.018 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 $928,324. 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 1991 $120,000 1992 130,000 1993 140,000 1994 75.000 46 000 49 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1990 HOTS 13 - LONG-TSRH DBBT (Continued) Water Fund (Continued) Debt issue expense and bond discount on the Water Refunding Revenue Bonds, Series 1985, are being amortized over the life of the bonds. This debt consists of Improvement Revenue Bonds Series 1979, dated October 1, 1979, in the amount of $910,000 with interest rates ranging from 8.30$ to 8.50$. Resolution 10-78/79 provided for the creation of a special fund known as the Improvement Bond Revenue Fund (Revenue Fund). Pledged funds to be deposited in the Revenue Fund are the guaranteed entitlement portion of state revenue sharing trust funds, public service utilities taxes, franchise fees and occupational license taxes. At September 30, 1990, $680,000 of this issue, which consists of term and serial bonds, were outstanding. The disposition of monies in the Revenue Fund are first to the Improvement Bond Sinking Fund (Debt Service Fund) in the amount of the required principal and interest payments. A reserve account was established in the Debt Service Fund to provide for the maximum debt service requirement in any fiscal year. This account is fully funded as of September 30, 1990. Finally, any revenues remaining may be used for any lawful purpose. The bonds will be repaid through the Debt Service Fund. Annual requirements to amortize this debt are as follows: Coupon October 1. Rate Princiaal Interest Pavments 1991 8.30$ $ 30,000 $ 57,090 $ 87,090 1992 8.40$ 35,000 54,600 89,600 1993 8.40$ 35,000 51,b60 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 680 000 480 030 $1.160.030 50 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1990 MOTS 13 - LONG-TSR][ DEBT (Continued) The annual requirements to amortize all outstanding debt including interest payments of $867,048 as of September 30, 1990 are as follows: Fiscal Year Ending Compensated Improvement Water ~eptember 30 Absences Revenue Revenue Total , 1991 $ $ 87,090 $ 92,990 $ 180,080 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 76,227 76,227 76 27 S1.160.030 51.512.018 S2,748.275 Annual maturities of long-term compensated absences cannot be reasonably determined. 51 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1990 1gOTB 13 - LOHa-TSRN DEBT (Continued) Transactions for the Village for the year ended September 30, 1990 are summarized as follows: Improvement Water Compensated Revenue Revenue Absences Bonds Bonds Total Long-term debt at October 1, 1989 Plus: Addition to compensated absences Less: Bonds retired Long-term debt at September 30, 1990 $74,381 $710,000 $1,210,000 $1,994,381 1,846 1,846 30.000 8.5.000 115.000 7 27 0 0 $1.125,000 S1.881.227 Interest expense on long-term debt for the fiscal year ended September 30, 1990 totaled $160,435 (general long-term debt - $59,580; Enterprise Fund - $100,855). 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, 1990, $3,915,000 of bonds outstanding and interest of $4,017,605 are considered defeased. 52 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1990 ~~ - ~ :~~~1~~ ~~ ~ Individual fund Interfund receivables and payables at September 30, 1990 are as follows: Interfund Interfund Receivables payables General Fund Special Revenue Fund Debt Service Fund Capital Projects Fund Enterprise Fund NOT$ 16 - INTERFQIdD ADMINISTRATIVE FEE $ $33,242 9,317 813 32,429 9.317 4 559 42 5 During the year ended September 30, 1990, the Enterprise Fund remitted $100,000 to the General Fund for administrative management fees. This amount is reflected as intragovernmental services revenue in the General Fund and as contractual services operating expenses in the Enterprise Fund. Contributed capital consists of the following: Contributions from capital improvement charges $1,719,739 Contributions from developers 986+918 S2,706.657 For the year ended September 30, 1990, contributions from capital improvement charges totaled $183,720 and contributions from developers totaled $133,231. 53 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1990 Encumbrances at September 30, 1990 were $246,692. During the fiscal year, the Village obtained abandonment permits from the South Florida Water Management District for the abandonment of nine wells no longer in use by the water system. The loss from the abandonment of the wells was $207,283. bOTE 20 - LIRIGHRION The Village is involved in right-of-way property acquisitions pending as of September 30, 1990. While the appraised values of the property was paid to the court pending settlement, it is estimated that the possibility of additional exposure is approximately $38,000. Accordingly, $38,000 has been appropriated in the capital improvement fund for fiscal year 1990/91. The Village does not anticipate any liabilities in excess of the funding available. The Village, in accordance with the normal conduct of its affairs, is involved in various other judgments, claims and litigations. It is expected that the final settlement of these matters will not materially affect the financial statements of the Village. ZiOTB 21 - PR88ENTATION StAt~mEan Of CHStI F10WS Pursuant to Governmental Accounting Standards Board Statement No. 9, the Village presented a statement of cash flows in place of the statement of changes in financial position. Prior year financial statements previously reported the special revenue fund as a part of the general fund. Although the fund is not material to the financial statements as a whole, it was determined by management that separate disclosure is a more meaningful presentation. 54 GENERAL FUND VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Revenues - Hudget and Actual For the Fiscal Year Ended September 30, 1990 Taxes Current ad valorem taxes Delinquent ad valorem taxes Total taxes Licenses and permits Building permits Other licenses and permits Total licenses and permits Variance - Favorable Budget Actual SUnfavorable) $1,837,630 $1,800,456 2,500 1.967 210,000 109,267 7,750 8,012 217,750 117,279 $ (37,174) (533) (37.707) (100,733) 262 (100.471) Intergovernmental revenues Cigarette tax 17,580 15,810 (1,770) Alcoholic beverage licenses 8,000 7,476 (524) One-half cent sales tax 223,575 216,016 (7,559) Comp. planning assistance 12,307 12,307 Countywide registrations 24,000 25,684 1,684 Local option gas tax 96,150 97,539 1,389 Municipal fuel tax 68 68 Recycling reimbursables 94 94 Miscellaneous revenues 18,284 18,284 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 369.305 393,278 30,000 800 2,400 866 850 2,800 800 2,000 250 1,223 4,951 2,406 2,300 23.973 (27,600) 66 373 2,151 1,606 300 (Continued) 55 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Revenues - Budget and Actual For the Fiscal Year Ended September 30, 1990 (Continued) Fines and forfeits Court fines Parking tickets Total fines and forfeits Investment income Interest Total investment income Miscellaneous revenues Contributions fros landowners Contributions for park land Other Police department Total miscellaneous revenues Intragovernmental services Administrative management - water fund Total intragovernmental services Total revenues Budget $ 50,000 350 50,350 50,000 50.000 1,500 150 1,650 Variance - Favorable Actual jUnfavora~lel $ 37,342 $ (12,658) 5~1 37.903 (12.447) 103,731 103,731 53.731 53.731 28,900 9,662 6,481 408 45,451 28,900 9,662 4,981 258 43,801 100.000 300.000 100.000 52.666,685 100.000 52.614.211 S (52,474) 56 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1990 Variance - Favorable Budget Actual (Unfavorable) General government Legislative Travel and per diem $ 14,200 $ 12,070 $ 2,130 Other charges 500 644 (144) Books, publications and dues 3.285 3_ 022 263 Total legislative 17.985 15,736 2.249 Executive Salaries 122,420 118,453 3,967 F.I.C.A. 9,370 9,361 9 Retirement 18,635 18,616 19 Life and health insurance 14,950 14,843 107 Worker's compensation insurance 625 513 112 Deferred compensation plan 3,110 3,010 100 Travel and per diem 7,860 6,785 1,075 Office machines maintenance 2,275 2,265 10 Other charges 935 548 387 Off ice supplies 2,525 2,522 3 Books, publications, dues 1,820 1,811 9 Capital outlay Machinery and equipment 500 500 Total executive 185.025 Financial and administrative Salaries 89,200 89,192 8 F.I.C.A. 6,600 6,533 67 Retirement 13,625 13,331 294 Life and health insurance 9,630 9,611 19 (Continued) 57 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1990 (Continued) Variance - Favorable Budaet Actual „(,Unfavorable) General government (continued) Financial and administrative (continued] Worker's compensation 460 $ 367 $ 93 insurance $ Professional services 3,500 3,440 60 Accounting and auditing 23,010 23,010 271 Other contractual services 19,050 18,779 79 Travel and per diem 2,000 1,921 7 Other charges Office supplies 450 2,525 443 2,512 13 Operating supplies 850 850 18 Books, publications, dues 300 282 2 Office machines maintenance 7,020 7,018 Capital outlay liachinery and equipment 2.615 2.615 Total financial and administrative 180.835 179.9 Legal counsel Legal services 82.650 $z.elz '° Total legal counsel 82.650 82.612 38 Planning and zoning Professional services 41.070 39.861 1.209 Total planning and zoning 0 39,861 (Continued) 58 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1990 (Continued) General government (continued) Variance - Favorable Budget Actual (Unfavorable) Other general government Life and health insurance Other personal services Professional services Contractual services Travel and per diem Communication services Transportation Utility services Fire hydrant rental fees Leases Insurance Village Hall maintenance Printing and binding Promotional activities Other charges Office su8pplies Operating supplies Books, publications, dues Capital outlay Improvements other than buildings Machinery and equipment Grants and aids $ 1,840 $ 1,837 2,950 2,662 660 25,677 25,677 150 3,500 3,320 4,050 4,043 8,425 8,422 11,400 11,400 5,715 5,596 25,900 25,742 7,500 7,242 500 116 11,177 11,146 2,500 2,386 4,675 4,673 1,450 1,442 1,500 1,096 $ 3 288 660 57,150 57,141 850 850 200 Total other general government 177769 174.791 Total general government 685,334 671.631 59 150 180 7 3 119 158 258 384 31 114 2 8 404 9 200 2.978 13.703 (Continued) VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1990 (Continued) Variance - Favorable Budget Actual jUnfavorable) Public safety Police department Salaries $ 595,145 $ 590,993 $ 4,152 Overtime 24,950 21,540 3,410 F.I.C.A. 49,695 46,072 3,623 Retirement 118,790 113,370 5,420 Life and health insurance 76,595 69,830 6,765 Worker's compensation insurance 27,940 27,932 8 Travel and per diem 4,025 2,624 1,401 Communication services 5,010 2,843 2,167 Leases 4,385 3,614 771 Insurance 19,975 19,973 2 Repairs and maintenance services 18,410 17,261 1,149 Printing and binding 1,285 1,017 268 Other charges 3,535 3,091 444 Personnel training 8,100 5,758 2,342 Office supplies 3,154 .2,623 327 Operating supplies 39,567 34,959 4,608 Books, publications, dues 1,280 1,034 246 Capital outlay Machinery and equipment 59.415 56.964 2.451 Total police department 1,061,252 1,021.498 39.754 Protective inspections Salaries 117,900 110,802 7,098 F.I.C.A. 9,235 8,511 724 Retirement 18,595 16,466 2,129 Life and health insurance 16,720 14,916 1,804 (Continued) 60 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1990 (Continued) Public safety (continued) Protective inspections (continued) Workers compensation insurance Code enforcement service Contractor services Travel and per diem Communication services Insurance Office machines Vehicle maintenance Printing and binding Other charges Office supplies Operating supplies Books, publications, dues Capital outlay Machinery and equipment Variance - Favorable Budget Actual (Unfavorable) S 10,135 3,625 13,540 4,950 2,325 925 2,440 900 800 1,300 3,625 1,030 575 9,789 3,607 7,873 4,226 2,301 893 2,366 899 536 576 2,370 892 554 Total protective inspections 211.725 190.657 Emergency and disaster relief Civil preparedness Disaster relief Total emergency and disaster relief 475 464 3,025 2,989 3.500 3.453 346 18 5,667 724 24 32 74 1 264 724 1,255 138 21 11 36 (Continued) 61 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1990 (Continued) Variance - Favorable Budget Actual (Unfavorable) Ffre protection and emergency medical service Public safety department study $ 14,500 $ 4,705 $ 9,795 Palm Beach County contractual services 505.000 504,852 148 Total fire protection and emergency medical service 519.500 509.557 9.943 Total public safety 1.795.977 1.725,165 70.812 Physical environment Contractual services - refuse and recycling 439.500 437.236 2.264 Total physical environment 439.500 437,E 2.264 Transportation Road and street facilities Salaries 109,910 109,877 33 Overtime 750 300 8 8,290 750 10 F.I.C.A. Retirement , 16,500 16,490 10 Life and health insurance 16,960 16,574 386 Worker's compensation 000 9 7,624 1,376 insurance Engineering services , 24,450 23,433. 1,017 Other contractual services 32,110 20,692 11,4i~ Travel and per diem 2,200 2,183 954 21 Communication services 975 (Continued) 62 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1990 (Continued) Transportation (continued) Road and street facilities (continued) Utility services $ Street lights Insurance Repairs and maintenance services Other charges Operating supplies Road materials and supplies Books, publications, dues Capital outlay Machinery and equipment Improvements other than buildings - replacement of Royal Palms Variance - Favorable Budget Actual 1,jlnfavorablel 17,250 $ 12,435 $ 4,815 24,000 20,615 3,385 7,265 5,679 1,586 44,130 40,247 3,883 500 275 225 8,800 8,217 583 6,600 5,217 1,383 250 130 120 10,300 9,003 1,297 Total transportation Human services Health - mosquito control Salaries FICA taxes Equipment maintenance Other charges Operating supplies Personnel training Total human services 360.250 324,1.35 36.115 1,200 90 400 50 2,575 600 226 974 90 73 327 50 170 2,405 ~ ~.3 9 930 (Continued) 63 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures - Budget and Actual For the Fiscal Year Ended September 30, 1990 (Continued) Culture/Recreation Parks and recreation Salaries Overtime F.I.C.A. Retirement Life and health insurance Workers compensation insurance Contractual services Travel and per diem Communication services Utility services Insurance Repairs and maintenance services Other charges Office supplies Operating supplies Books, publications, dues Aid to government organizations Aid to private organizations Program expense Capital outlay Machinery and equipment Playground park equipment Total culture/recreation Variance - Favorable Budget Actual jUnfavorable) $ 44,750 $ 41,311 400 3,400 3,310 6,855 6,836 4,275 2,648 3,750 3,610 1, 500 600 11,500 3,025 1,972 3,566 1,254 244 11,471 1,287 21,656 500 250 1,900 250 1,700 7,000 4,300 20,020 430 83 1,028 134 1,700 7,000 3,822 3,400 2,873 1.500 126.121 110.989 Total expenditures X3.412.097 X3.270.086 64 $ 3,439 400 90 19 1,627 1,778 44 246 356 29 1,738 1,636 70 167 872 116 478 527 1, 500 15.132 S 142.011 SPECIAL REVENUE FUND VILLAGE OF TEQUESTA, FLORIDA Special Revenue Fund Schedule of Revenues - Budget and Actual For the Fiscal Year Ended September 30, 1990 Taxes Franchise fees Utility taxes Total taxes Licenses and permits Professional and occupational licenses Total licenses and permits Intergovernmental revenues State revenue sharing Total intergovernmental revenues Total revenues Variance - Favorable Budget Actual jUnfavorable) $ 268,300 386.000 654.300 $ 282,090 401.301 683.391 $ 13,790 15.301 29.091 75.000 75.000 129.246 S 858.546 65 73.464 73.464 129.216 S 886.071 (1.536) (1.536) THIS PAGE INTENTIONALLY LEFT BLANK PROPRIETARY FUND (ENTERPRISE FUND) VILLAGE OF TEQUESTA, FLORIDA Enterprise Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended September 30, 1990 Purchased water Personal services Salaries Overtime F.I.C.A. Retirement Life and health insurance Worker's compensation insurance Employee recognition program Employee assistance programs 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 Supp lies O~fice supplies Chemicals Other operating supplies Books, publications and dues Total supplies Heat, light and power Repairs and maintenance Depreciation Capital outlay Total operating expenses Budget Actual 257,970 7,100 19,885 39,765 44,005 252,407 5,945 19,581 38,518 40,359 9,180 1,000 1,300 380.205 27,500 1,500 4,225 4,100 8,310 14,475 33,100 24,525 9,925 1,750 100,000 2,275 231.685 6,575 28,850 10,875 1.950 121,295 126.535 44,500 51.444,470 66 8,700 249 315 Variance - Favorable (Unfavorable) 5,563 1,155 304 1,247 3,646 480 751 985 366.074 26,953 51 3,915 3,762 6,986 14,427 28,294 24,501 8,595 1,750 100,000 1.907 547 1,449 310 338 1,324 48 4,806 24 1,330 221,141 6,557 18,302 10,291 1.628 18 10,548 584 322 36, 778 88,467 105,733 310,661 7,978. S1,604,403 11.472 32828 20.802 (310.661) 36,522 $(159,933) VILLAGE OF TEQUESTA, FLORIDA Enterprise Fund Comparative Summary of Operations For the Fiscal Years Ended September 30, 1990 and 1989 Operating revenues Charges for services Operating expenses Purchased water Personal services Contractual services Supplies Heat, light and power Repairs and maintenance Depreciation Capital outlay Total operating expenses Operating income Nonoperatinq revenues (expenses) Investment income Interest expense and fiscal charges Loss on disposal of equipment Well abandonment Total nonoperating revenues Income before operating transfer Operating transfers (out) Net income S1.963.238 S1.896.i36 467,571 366,074 221,141 36,778 88,467 105,733 310,661 7.978 465,375 281,366 225,819 52,247 108,672 124,291 297,521 1.604.403 1,555,291 358.835 340.845 244,209 246,124 (114,259) (120,982) (2, 205) ,1207.283) (32,706) (79.538) 92.436 279,297 433,281 (55.000) (150.000) S 224.297 S 283.281 67 VILLAGE OF TEQUESTA, FLORIDA Enterprise Fund Schedule of Restricted Accounts Under Revenue Bond Ordinance For the Fiscal Year Ended September 30, 1990 sinking Account Balance, October 1, 1989 Cash and investments $ 20,352 Unamortized discount on investments Total 20.352 Increases Transfers from unrestricted accounts 175,000 Investment earnings 6,489 Transfers from restricted accounts Total 181.489 Decreases Capital outlay Other debt service costs Transfers to other restricted accounts 191,256 Total 191.256 Balance, September 30, 1990 Cash and investments 10,585 Unamortized discount on investments Total 0 585 68 Bond Renewal and Amortization Reserve Replacement Account Account Account $556,255 $298,873 $ 706 (25,181) 531f074 298,873 706 42,500 50,858 24,391 120.401 171,25,_9 24,391 42.500 30,757 30,757 729,815 323,264 12,449 (27,,482) 7 2 3 3 3 26 1 4 9 69 VILLAGE OF TEQUESTA, FLORIDA Amortization Schedule $1,525,000 Water Refunding Revenue Bonds - Series 1985 September 30, 1990 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, 1990, the outstanding bonds totaled $1,125,000; the payment schedule follows: Due Date 1991 April 1 1991 October 1 1992 April 1 1992 October 1 1993 April 1 1993 October 1 1994 April 1 1994 October 1 1995 April 1 1995 October 1 1996 April 1 1996 October 1 Totals Principal $ 45,000 45,000 50,000 50,000 55,000 55,000 130,000 135,000 140,000 150,000 150,000 120.000 S1.125.000 Interest $ 47,990 46,246 44,503 42,502 40,503 38,234 35,965 30,440 24,702 18,578 12,015 5.340 3 7 018 Total $ 92,990 91,246 94,503 92,502 95,503 93,234 165,965 165,440 164,702 168,578 162,015 125.340 S1.512.018 70 FIDUCIARY FUND (AGENCY FUND) VILLAGE OF TEQUESTA, FLORIDA Schedule of Changes in Assets and Liabilities - Agency Fund For Fiscal Year Ended September 30, 1990 Deferred Balance Balance Compensation October 1, September 30, Fund 1989 Additions Deductions 1990 Assets Investments 90 162 23 425 8 000 105 587 Liabilities Deferred compensation payable ~ S2~ ~$r.44.Q ~~.~$? 71 GENERAL FIXED ASSETS VILLAGE OF TEQUESTA, FLORIDA Schedule of General Fixed Assets by Source September 30, 1990 General fixed assets Land Building and improvements Equipment Improvements other than buildings Total general fixed assets Investment in general fixed assets General Fund revenue Total investment in general fixed assets $ 49,728 294,333 473,663 133.265 S95~9 S950,989 9 0 9 9 72 VILLAGE OF TEQUESTA, FLORIDA Schedule of General Fixed Assets By Function September 30, 1990 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 $320,342 $35,000 $207,393 $ 77,949 254,314 14,180 240,134 122,812 7,713 115,099 6,020 6,020 132.857 14.728 83,668 34.461 836,345 49,728 312,954 473,663 114,644 114.644 950 98 9 7 8 4 7 59 47 66 73 VII~AGE OF TDQiJF~TA, Fi~2IDA Sd~edttle of Ct~atx~es f n General Fi~oed Assets Fay FLmction Sept®bes 30, 1990 General General Fi~aed Assets Inter Fi~oed Assets October 1, Departmental 30, 1989 Additions Deletions Transfers 1990 $304,769 $ 5,376 $ 2,088 $ 12,285 $320,342 Public safety 217,506 56,072 6,979 (12,285) 254,314 Transportation 186,829 9,003 73,020 122,812 Furman services 6, 020 6, 020 Culture/ recreation 133.707 2.700 3.550 132.857 848,831 73,151 85,637 836,345 Prior to allocation by ftrlction 114.644 4 6 63 7 7 15 5 637 ~ 5950 989 74 GENERAL LONG-TERM DEBT VILLAGE OF TEQUESTA, FLORIDA Amortization Schedule Improvement Revenue Bonds - Series 1979 September 30, 1990 The debt was incurred on April 1, 1980, through the issuance of $910,000 improvement revenue bonds. The proceeds were used for paving and drainage improvements. On September 30, 1990, the outstanding bonds totaled $680,000: Coupon Total October 1, Rate Principal Interest Payments 1991 8.30$ $ 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 680 0 S4~ 51.160,030 75 ALL FUNDS VILLAGE OF TEQUESTA, FLORIDA Schedule of Investments - All Funds September 30, 1990 Enterprise Fund Bond Amortization Account United States Treasury Obligations Unamortized Interest Maturity Par Value Cost Discount Rate Dade $515,000 $483,221 $27,482 7.625 2/15/07 State Board of Administration Interest Amounts Rate Enterprise Fund Meter deposits account Retained earnings account Reserve account Bond amortization account Sinking fund account Capital improvement account General Fund Capital Projects Fund Debt Service Fund 76 $ 144,965 1,500,901 298,980 10,335 5,637 430,860 various Various Various various Various Various 833,465 Various 151,000 Various 114,113 Various VILLAGE OF TEQUESTA, FLORIDA Schedule of Insurance September 30, 1990 Employees Statutory Life Group Life Insurance Group Hospitalization Comprehensive Automobile Liability Public Employees Blanket Bond Public Official Bond Workmen's Compensation Muiti-peril Public Official's Liability Police Professional Liability Umbrella Liability Unlawful and Intentional Death (Police Department Personnel, death resulting from an intentional and illegal act) Policy Number 65-26-41 3-2215 24883 BA0014609-04 30157954 30158137 WC0099946-01 CPP0117219-03 POS931498 90-010-87 XC46244 ABL-652641 77 Coverage $20,000 1.5 times annual salary Various $1,000,000 $100,000 $100,000 $500,000 $1,000,000 $1,000,000 $1,100,000 $1,000,000 $50,000 THIS PAGE INTENTIONALLY LEFT BLANK THIS PAGE INTENTIONALLY LEFT BLANK VILLAGE OF TEQUESTA, FLORIDA General Revenues by Source (Unaudited) (1) Last Ten Fiscal Years Fiscal Year Ended September 30 Licenses and Taxes (2) Permits 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 1990 2,485,814 190,743 (1) Includes General, Special Revenue, Debt Service Funds and Capital Projects Funds. (2) Includes Fire/Emergency Rescue Service. Ad valorem tax millage effective year 1985. (3) Includes intragovernmental services. Source: Village of Tequesta financial records. 78 Charges for Fines and Intergovernmenta l Services Forfeits Miscellaneous(3) Total $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 3,543,787 872,494 14,146 37,903 304,227 3,905,327 79 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 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 1990 671,631 1,725,165 1,206,458 (1) Includes General, Special Revenue, Debt Service and Capital Project Funds. (2) Includes Fire/Emergency Contract with Palm Beach County year 1985. Source: Village of Tequesta financial records. 80 Culture Physical Environment Human Services and Recreation Debt Service Total $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 2,520,768 308,235 502 111,466 89,350 2,916,900 337,268 1,067 103,019 86,905 3,419,901 437,236 930 110,989 90,082 4,242,491 81 VILLAGE OF TEQUESTA, FLORIDA Property Tax Levies and Collections (Unaudited) (1) Last Ten Fiscal Years Percent o! Fiscal Year Total Current Tax Percent Outstanding Delinquent Ended ,ggptember 30 Tax Levy li) Collections (1) of Levy Collected Delinquent Taxes Taxes to Taw 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 1990 1,821,025 1,813,915 99.6 7,110 .4 (1) Includes discounts taken by property taxpayers. Source: Palm Beach County Tax Collector's office. 82 THIS PAGE INTENTIONALLY LEFT BLANK VILLAGE OF TEQUESTA, FLORIDA Taxable Value and Just Value of Taxable Property (Unaudited) Last Ten Fiscal Years September 30 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 ~ ~~ / 9q/ Real Property Taxable Value Just Value $146,062,451 200,770,160 199,394,093 206,001,538 219,001,538 233,658,151 257,766,850 262,373,925 290,375,566 337,942,463 ~; s~~~G~ $212,663,476 237,918,493 243,749,997 262,247,858 275,901,415 297,370,052 324,296,888 329,524,860 366,488,883 414,814 947 Source: Palm Beach County Property Appraiser's office. 83 _~` Personal Property __ Total Taxable Just Taxable Just Value Value Value Value $ 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 16, 463,E8,,0/6 $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 21,797,356 ~~~~~ ~ ~~ ~ ~~~ ~~~ $154,638,497 210,204,447 209,804,188 218,153,678 229,903,728 244,470,485 269,314,508 274,426,183 305,061,255 354,406,269 $225,511,078 247,774,531 254,693,308 274,164,029 287,464,396 308,932,060 336,718,284 342,502,112 382,244,611 436,612,303 ~~ r 9 /1 k y 84 Ratio Taxable Value ~o Just Value 69$ 85$ 82$ 80$ 80$ 79$ 80$ 80$ 80$ 81$ VILLAGE OF TEQUESTA, FLORIDA Property Tax Rates - All Direct and Overlapping Governments (Unaudited) (Per $1,000 of Assessed Value) Last Ten Fiscal Years South Florida County Water General School County Management September 30 Fund County Board Library District 1981 5.0430 7.3227 8.6300 .4008 .4020 1982 2.9839 4.9361 6.9192 .3707 .3580 1983 2.6762 4.1823 6.1331 .3261 .3840 1984 3.1506 4.2489 6.9329 .3526 .3990 1985 4.9200 4.1836 7.1720 .3525 .4270 1986 5.0867 4.5271 7.2280 .3428 .4390 1987 5.3126 4.6190 7.5950 .3951 .5130 1988 5.7510 4.7862 8.1580 .9075 .4970 1989 5.7510 5.0562 8.4620 .9137 .5470 ~ 1990 6.1828 4.8904 9.1990 .3910 .5470 ~~ f~~ ~~l ~ .~ < ~ ~. , s : ~~ ~' ,3 is ~ [~ (~~~ 9 , 7~ Sv ~~ ~ 5'~ ~~ , ~ (i) Two 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. 85 Jupiter Jupiter Fire Inlet District District No. 1 .1641 1.7014 .1003 1.2422 ,1866 1.1845 .2290 1.4660 .2290 (2) .2290 (2) .2115 (2) .1979 ~ (2) .1920 (2) .1772 (2) `~`3~ ~e .~~~5 Palm Beach Junior College .5000(1) .5000(1) Florida Naviga- tional Children's Inland Services District Council .0670 .0395 .0370 ,. . ck`~~ . ~.w-~~ 86 County Health Care District .0923 .1537, .1929 1.2500 ,~~~a~ ~~ ~~~ ~2l~S l ~, ~~~~ 24.1640 17.4104 15.0728 16.7790 17.2841 17.8526 18.6462 20.4569 21.1151 22.8673 ~~, ~~ ~~ 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 Taxable September 30 Population* Value 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 1990 4,499 354,406,269 /9~~ * Source: Palm Beach County Planning Board, University of Florida Estimates and Federal Census, and Village Building Department 87 Debt Ratio of Net Gross Service Net Bonded Debt Net Bonded Bonded Monies Bonded to Assessed Debt Debt Available Debt Value Per Capita $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 .19 131.32 680,000 127,917 552,083 .16 122.71 88 VILLAGE OF TEQUESTA, FLORIDA Legal Debt Marqin (Unaudited) September 30, 1990 The Village of Tequesta, Florida has no legal debt margin. 89 VILLAGE OF TEQUESTA, FLORIDA Computation of Direct and Overlapping Debt (Unaudited) September 30, 1990 Taxing Authority Village of Tequesta Palm Beach County Palm Beach County School Board Total Net Debt Outstanding $ 552,083 400,635,000 294,455,000 Percentage Applicable to Tequesta 100.00$ .73 .73 Amount Applicable to Tequesta $ 552,083 2,924,635 2,149,521 55,626,239 Source: Above Government Entities 90 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 Deb Total Service t Fiscal Year Total General Total Ended Debt Expenditures General Se tember 30 Principal Interest Service L1) Ex penditures p 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 1990 30,000 60,082 90,082 4,242,491 2.1 (1) Includes General, Special Revenue, Debt Service and Capital Projects Fund. 91 THIS PAGE INTENTIONALLY LEFT BLANK VILLAGE OF TEQUESTA, FLORIDA Revenue Bond Coverage Water Bonds (Unaudited) Last Ten Fiscal Years Fiscal Year Net Revenue Ended Gross Operating Available for ,Sgptember 30 Revenues ,Expenses Debt Service 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 1990 2,207,447 1,604,403 603,044 (1) Represents net debt service costs per a securities contract requiring the Village to purchase an aggregate of $980,000 par amount of U.S. Treasury Bonds due February 15, 2007, bearing increase at 7-5/8$, 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. 92 Debt Service Requirements Debt Amortization Service Principal Interest Account (11 Total Coverave $ -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 75,000 122,036 73,210 260,246 1.53 80,000 106,705 66,911 253,616 2.31 85,000 100,855 71,301 257,156 2.35 93 VILLAGE OF TEQUESTA, FLORIDA Property, Value, Construction and Bank Deposits (Unaudited) Last Eight Fiscal Years Commercial Residential Construction (il Construction (1) Property Value (3) Number Number Fiscal of of Bank Real Personal Year Units Value Units Value Deposits (2l Prooerty 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 1990 1 197,126 20 3,206,343 313,199,861 414,814,947 21,797,356 Information only available for years provided. Source: (1) Village of Tequesta Building Department. (2) Tequesta Commercial Banks and Savings and Loan Associations. (3) Palm Beach County Property Appraiser's office. 94 VILLAGE OF TEQUESTA, FLORIDA Principal Taxpayers (Unaudited) September 30, 1990 Percentage 1989 of Assessed Assessed Taxpayers hype of Business Valuation ValuatioD Tequesta Shoppes, Ltd. (R. Haisfield Enterprises) Shopping Center $ 7,988,843 1.82$ County Line Plaza (Tequesta Associates - Limited Partnership) Shopping Center 7,884,807 1.80$ Dorner Properties (Bank of Pain Beach Undeveloped & Trust Company) Real Estate 7,791,349 1.78$ Lighthouse Plaza (Lighthouse Plaza Associates, Ltd.) Shopping Center 4,104,056 .93$ Barnett Bank (First National Bank of Jupiter/Tequesta) Banking 3,293,158 .75$ Tequesta Fashion Mall (Edwin J. Nelson) Shopping Center 3,100,795 .71$ Tequesta Country Club Golf/Social Club 2,520,112 .57$ Richard Haisfield Residential Developer - (Sub-division) 2,313,196 .52$ Tequesta Plaza (Fehlhaber Corporation) Shopping Center 2,100,000 .48$ Tequesta Corporate Center (Tequesta Corp.) Professional Center Partners) Office Building 1,617,282 S42,713,598 Source: Palm Beach County Property Appraiser's Office .37$ 95 VILLAGE OF TEQUESTA, FLORIDA Miscellaneous Statistics (Unaudited) September 30, 1990 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 - 4,331 Average daily consumption - 2,360 million gallons Miles of water mains - approximately 50 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: 664 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 96 VILLAGE OF TEQUESTA, FLORIDA Demographic Statistics (Unaudited) Last Ten Fiscal Years Education Level in Years of Fiscal Population Per Capita Median Formal Unemployment Year (1) Income (2) ~cxe (2) 8choolinq (2) Rate (3) 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 1990 4,499 20,362 7.9 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. 97 OTHER REPORTS NOWLEN, HOLT & MINER, P.A. CERTIFIED PUBLIC ACCOUNTANTS 215 FFTH STREET SUfTE 200 POST OFFICE BOX 347 WEST PALM BEACH. FLORIDA 33402.0347 TELEPHONE (407) 859-3060 FAX (407) 835.0828 EVERETT B. NOWLEN, CPA 110.70-19841 KATlIEEN A. MHER, CPA N. RONALD BEHI'ETT. CPA MEMBERS AMERICAN l~TITIJTE OF EDWARD T. HOLT, CPA KY W1TCFIER BEAUMgNT. CPA RUTH ANN ASHMEAD. CPA CERTFED PUBLIC AOCOUl1TANTS WWAM B. MHER. CPA MARIYN R08EAT5, CPA J- MICHAEL STEVENS. CPA FLOi~A KS7TME Of RO~RT W. 1#JrOtiO(. JR., CPA R. (~OORY SMITH. CPA MAVRA AMORETT11i(Xi.S. CPA CERTFEO PUBLIC ACCOUNTANTS JANET R. BARX;EVICM, CPA ROBERT W. MELMREICH, CPA ROBN A. KOCELKO. CPA ACCOUHTM(i FgMS ASSOCIATED NC. TERRY L MORTON. JR., CPA BELLE OLAOE OFflCE 333 S.E. 2n0 STREET POET OFFICE 607c 338 BELLE (;LApE, FLORpA 33130.0338 INDEPENDENT AUDITORS REPORT ON INTERNAL CONTROL'~P"°"E'`°>,°°°'se'2 FAX 14071998-8248 STRUCTURE RELATED MATTERS NOTED IN A FINANCIAL STATEMENT AUDIT CONDUCTED IN ACCORDANCE WITH 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, as of and for the year ended September 30, 1990 and have issued our report thereon dated November 26, 1990. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the 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, Florida for the year ended September 30, 1990, 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, Florida is responsible for establishing 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 transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. 98 Because of inherent limitations in any internal control 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 deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures in the following categories: Cash Investments Inventory Revenue, receivables and receipts Expenditures for goods and services and accounts payable Property, equipment and capital expenditures Debt and debt service expenditures Fund equities Payroll and related liabilities 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 the 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. 99 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: Segregation of Duties There is inadequate separation of duties in all the control cycles. The basic premise is that no one employee should have access to both physical assets and the related accounting records or to all phases of a transaction. 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, Florida 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. "lfl~4,.,. ~ ~.1.~ d rv~.~,. Q. A-. November 26, 1990 100 NOWLEN, HOLT & MINER, P.A. CERTIFIED PUBLIC ACCOUNTANTS 2/S FiTH STREET SLMTE 200 POST OFFICE BOX 347 WEST PALM BEACH, FLORIDA 33402-0347 TELEPHONE (407) 859.3080 FAX (407) 835.0828 EVERET7 B NOWLEN. CPA (~ 93P 19841 KATHLEEN A MNER. CPA N. RONALD BEPMAETT. CPA MEMBEJlS AMERICJW NSTRtJTE OF EDWARD T. HOLT, CPA K1A NATCFER BEAUMONT. CPA RUTH ANN ASwiEAD. CPA CERTFEO Pt$JC ACCOUNTANTS WLJJAM 8. MNER. CPA MARt1M ROBEATS. CPA J. MICHAEL STEVENS. CPA FLOIiDA 1iSTTTIJTE OF ROBERT W. YEJ~X, JR.. CPA R_ GAEI'+OIiY SMRM, CPA MAYRA MIORETTI-0OSS. CPA CEPlTFED PAX; ACCCl1fTAl/T$ JAlfT R. BARICEVICM, CPA ROBERT W. HELMiEiCM, CPA ROBN A_ KOCELKO. CPA AC~UNT1rIG Fi1MS ASSOCIATED MC. TEJittY L MORTON. JR.. CPA BELLE OIADE OFFICE 333 9.E- Zd STREET POET OFRCF B00c 338 BELLE GLADE. FLOPJD11334360338 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH ja0"°9~°'= FAx 1071 o9e-es4a LAWS AND REGULATIONS BASED ON AN AUDIT OF FINANCIAL STATIIrIENTS PERFORMED IN ACCORDANCE WITH 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, 1990, and have issued our report thereon dated November 26, 1990. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the 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'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, Florida 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, Florida had not complied, in all material respects, with those provisions. 101 We noted certain immaterial instances of noncompliance that we have reported to the management of the Village of Tequesta, Florida, 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. ~l.a,~.~ ~ 11~ c. ~,~ ~. ~-. November 26, 1990 102 VILLAGE OF TEQUESTA, FLORIDA STATUTORY REPORT The financial report for the Village of Tequesta, Florida, to be filed with the Department of Banking and Finance pursuant to Section 218.32, Florida Statutes, has not been prepared as of the date of the audit report. 103 APPENDIX A: STATEMENT OF COMMENTS AND RECOMMENDATIONS ~RTOR YEAR COMIrIENTB 118ICH CONTINIIE TO APPLY ~gg~gation of Duties There is inadequate separation of duties in all the control cycles. The basic premise is that no one employee should have access to both physical assets and the related accounting records or to all phases of a transaction. Although the limited number of personnel in the Village's accounting staff limits the extent of separation of duties, procedures can be performed to compensate for this weakness. A responsible official or employee not involved in the accounting functions should periodically perform tests on a sample basis to determine if the accounting procedures of the various control cycles are being carried out in compliance with prescribed standards. 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. ~~REN'i' YEAR COMMENTS pavr°-11 The Village has a contract with secretarial services. The position by the Village and regular hours Village. Therefore, the services employer-employee relationship. payroll taxes. in individual to perform is subject to supervision are established by the performed constitute an Thus, it is subject to We recommend the Village take appropriate action to comply with payroll tax laws. 104 CIIRRENT YEAR COMMENTS (Continued) Account~nv System An audit trail of water department transactions is weak or nonexistent due to computer reporting capabilities. Entries required in the general ledger are not posted monthly because of a lack of information provided by the computer system. We recommend the following steps be taken to improve the accounting for water department transactions: 1. Change the computer program so that both debit and credit entries post to general ledger control accounts. 2. Properly record transactions relating to meter deposits applied. 3. Develop written procedures for all phases of the water department transactions (water department and finance department). 4. Reconcile accounts receivable and meter deposit subsidiary ledgers to the general ledger on a monthly basis. 105