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COMPREHENSIVE ANNUAL FINANCIAL REPORT
VILLAGE OF TEQUESTA, FLORIDA
September 30, 1991
Prepared by the Finance Department
VILLAGE OF TEQUESTA, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
September 30, 1991
TABLE OF CONTENTS
Page
Number
Introductory Section
Letter of Transmittal 1-10
Certificate of Achievement for Excellence in
Financial Reporting it
Village of Tequesta Organization Chart 12
List of Principal Officials 13
Financial Section
Independent Auditor's Report 14-15
General Purpose Financial Statements
Combined Balance Sheet--All Fund Types and
Account Groups 16-19
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances--All Governmental
Fund Types and Expendable Trust Funds 20-21
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances--Budget and Actual--
Governmental Fund Types 22-25
Statement of Revenues, Expenses and Changes in
Retained Earnings--Proprietary Fund Type 26
Statement of Cash Flows--Proprietary Fund Type 27-28
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
VILLAGE OF TEQUESTA, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
September 30, 1991
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, 1991 and 1990 67
Schedule of Restricted Accounts Under Revenue
Bond Ordinance 68-69
Amortization Schedule--Water Refunding Revenue
Bonds - Series 1985 70
Fiduciary Funds
Combining Balance Sheet 71
Schedule of Changes in Assets and Liabilities --
Agency Fund 72
General Fixed Assets
Schedule of General Fixed Assets by Source 73
Schedule of General Fixed Assets by Function 74
Schedule of Changes in General Fixed Assets
By Function 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 gg
Computation of Direct and Overlapping Debt 90
VILLAGE OF TEQUESTA, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
September 30, 1991
TABLE OF CONTENTS (Continued)
Page
Number
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
Management Letter 104-105
No Text
VILLAGE OF TEQUESTA
Post Office Box 3273 357 Tequesta Drive
Tequesta, Florida 33469-0273 (407) 575-6200
FAX: (407) 575-6203
December 9, 1991
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, 1991, 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 four
sections: introductory, financial, statistical and other reports.
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. The other reports section
includes the auditor's report on internal control, compliance and
the management letter.
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 refuse and
recycling collection service.
1
Recycled Paper
ECONOMIC CONDITION AND OIITLOOR
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. During Fiscal Year 1990 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.
As a result of the depressed economic condition affecting the
nation currently and during 1991, development of the "Town Center
Master Plan" has been temporarily delayed; however, recent actions
taken by the Chairman of the Federal Reserve in reducing key
interest rates should improve the availability of loans for quality
developments and we are hopeful that development of this area will
commence in the near future.
Property values have increased an average of 8.9$ a year
during the past five years; however, the 1991 preliminary tax roll
for fiscal year 1992 reflects an increase of only 2.2$. An
increased number of petitions have been filed with the County
Property Appraiser's Office by owners of vacant commercial property
requesting reductions in assessed property values which could
result in a decrease in the Village's taxable property values.
Based on the historical data presented and current projections
of property tax values, the Village will closely monitor this
situation to ensure that any temporary negative developments will
be immediately addressed with a fiscal policy necessary to maintain
the financial integrity of the Village's financial position while
keeping in mind the tax burden of our citizens.
MAJOR INITIATIVES
During the preparation of the 1991 budget, the Village was
confronted with increased operating expenses for fire/emergency
rescue services, refuse/recycling collection fees and employee
group health insurance. Also, during the fiscal year, decreases in
revenues for building permit fees and various intergovernmental
revenues were projected. The Village's management addressed these
concerns by:
2
° Discontinuing payment of residential refuse
collection services with ad valorem property
taxes and began billing residents for the
service to reduce tax rates;
° Increasing employees' contribution percentage
for family health insurance;
° Deferring selected capital improvement
projects in response to reduced non-ad valorem
revenues.
The actions recommended by management and adopted by the
Village Council displayed exceptional courage in the political
environment; moreover, it demonstrated commitment to maintain
financial integrity during those difficult economic times.
The Village is continuing to address four specific areas of
concern:
° Completion of the Expansion of Transportation
Corridors (Tequesta Drive)
° Expansion of Potable Water Treatment Facili-
ties
° Expansion of Storm Water Drainage Facilities
° Facilitate Development/Redevelopment of the
Tequesta Town Center
Maintenance and expansion of the community's general infra-
structure (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.
This plan is revised each budget year. As a result of
projected revenue shortfalls anticipated for next year, projects
budgeted within the Capital Projects 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 Capital Projects Fund expenditures consisted
of payment of construction retainage, right-of-way condemnation and
associated legal costs for the Tequesta Drive widening project in
the amount of $166,804. Other expenditures were: Beach Road
landscaping $1,987; and pathway improvements $4,228.
Capitalized expenses reported in the Proprietary Fund for 1991
totaled $122,251. A summary of capital outlay is reported below.
3
1991 Capital Outla
Equipment
System Replacements $ 8,607
New Copier 5,688
Trailer 1,370 $ 15,665
Improvements
Emergency Water Line Connections 1,213
Fire Hydrants 3;619
Water Meters 7,752
Wells and Improvements 52,248
Storage Tank Construction (2 MG) 30,767
Water Mains (Old Dixie Highway) 10,987 106,586
Total Capital Outlay 122 251
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 govern-
ment 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 manaaement.
4
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, 1991 and the
amount and percentage of increases and decreases in relation to
prior year revenues.
Percent
Increase of
Percent (Decrease) Increase
Amount of Total From 1990 (Decrease
Taxes $2,545,957 72.53 $ 60,143 2.42$
Licenses and permits 153,314 4.37 (37,429) (19.62)
Intergovernmental 513,839 14.64 (358,655) (41.10)
Charges for services 17,442 .50 3,296 23.16
Fines and forfeits 38,035 1.08 132 .35
Interest 111,675_ 3.18 (25,401) (18.53)
Miscellaneous 21,696 .62 (45,455) (67.69)
Intragovernmental
services 108,000 3.08 8,000 8.00
Total Revenues $3,509,958 10 $(395,369) 10.12$)
Taxes accounted for the major source of revenues and the most
significant increase in actual revenues received for 1991. Tax
revenues consist of three distinct resources: ad valorem property
tax, franchise fees and utility service taxes. The ad valorem
property tax rate for 1991 was 5.4085 mills, a decrease of 13~ from --
the previous year's millage rate of 6.1828 mills. However,
property tax values increased 16.2$. The combination of the
increase in property tax values and management's decision to begin
charging residents for refuse and recycling collection service in
1991 resulted in the reduction of the ad valorem property tax rate.
Intergovernmental revenues represent a significant decrease
from previous year revenues; however, this decrease reflects a
prior year non-reoccurring grant from the County for transportation
improvements and does not present any negative financial impact to
the Village. Similarly, the decrease in miscellaneous revenues was
the result on non-reoccurring reimbursements received the previous
year in the Capital Projects and General Funds.
Upon taking into consideration the decrease in revenues from
the sources cited, the actual decrease in reoccurring revenues is
negligible, and consists primarily of revenue decreases for:
interest, resulting from lower interest rates; and license and
permits, resulting from current economic conditions.
5
Expenditures
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, 1991, and the
amount and percentage of increases and decreases in relation to
prior year amounts:
Current
General government
Public safety
Physical environment
Transportation
Human services
Culture/recreation
Capital outlay
Debt service
Principal retirement
Interest and fiscal
charges
Total expenditures
Percent
Increase of
Percent (Decrease) Increase
Amount of Total From 1990 (Decrease)
$ 616,142 18.30$ $ (55,489) (8.26)$
1,938,477 57.58 213,312 12.36
5,550 .16 (431,686) (98.73)
383,982 11.41 59,847 18.46
2,879 .08 1,949 200.09
158,740 4.72 47,751 43.02
173,019 5.14 (709,304) (80.39)
30,000 .89
57,707 1.72 (2,375) 3.95
3,366,496 10 $(875,995) (20.651
Public safety expenditures reported for 1991 represented the
most significant increase over prior year expenditures, which can
be attributed primarily to a 13.7 increase for the fire/emergency
rescue services contract with Palm Beach County. Other less
significant increases were reported in transportation for:
increased landscape maintenance contracts and general engineering
services, and in culture/recreation, primarily attributed to the
purchase of park land for planned expansion at Constitution Park.
Decreases in expenditures reported for 1991 were for: Capital
outlay - the decrease represents expenditures in the Capital
Projects Fund for the Tequesta Drive Widening Project which was
considerably less than the previous year when the construction
phase of the project was completed. Physical environment - this
item is the most significant. It reflects management's decision to
discontinue paying for residential refuse service collections in
1991 and thereafter from ad valorem property tax revenues.
Effective October 1, 1990, Village residents were billed for refuse
and recycling collection services, which is separately reported in
the Enterprise Fund. General government - the decrease represents
Capital Outlay expenditures less than the previous year for County
Road 707 Landscape Beautification Project.
6
Other factors contributing to increase in 1991 expenditures
were for personal services which include a C.O.L.A. adjustment of
5$ for all employees, an average merit increase of 2$ and employee
health insurance costs increase of 15$ in 1991.
General Fund Balance
The fund balance of the General Fund was $981,721 on Septem-
ber 30, 1991, which 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
Water Operations
The Villages 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.
Revenues and Increase Percent of
Water Consumption 1991 1990 (Decrease) Increase
1.000 Gallons Amount Amount From 1990 (Decrease
Water Sales $1,951,797 $1,929,978 $21,819 1.13
Total Water Consumption 897,649 861,571 36,078 4.18
Average Daily Consumption 2.705 2.360 .345 14.61
Refuse/Recycling Operations
Refuse and recycling now accounted for in the Enterprise Fund
generated-fees of $259,531 in 1991. This revenue was previously
generated by ad valorem taxes in the General Fund.
The Enterprise Fund income and expense data for 1991 is shown
in the following schedule.
7
Income and ERUenses
Operating Revenues
Operating Expenses
Operating Income
Non-Operating Revenues
(expenses)
Refuse/
Water Recyclinq Total
$1,979,513 $259,531 $2,239,044
1,629,337 251,875 1,881,212
350,176
197,670
7,656 357,832
197,670
Income before Operating transfer 547,846 7,656 555,502
Operating transfer out 57,750 57,750
Net Income ~ 490,096 $ 7,656 $ 497.752
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, 1991, $1,035,000 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.
In 1991, an Expendable Trust Fund was established to account
for forfeitures received by the police department.
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 Long-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, 1991, $650,000 of the
bonds remained outstanding.
8
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, 1991, the Village's net bonded debt was $521,022, the
ratio of net bonded debt to taxable value was 14$ and the net
bonded debt per capita was $115.58.
Cash Management
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
deposits with the State Board of Administration - Local Government
Surplus Funds Trust Fund Investment Pool, obligations of the U.S.
government and amounts held by the Village's agent in a deferred
compensation plan. Investments with the State Board of Administra-
tion consist of obligations of the U.S. Treasury and its agencies,
money market securities of highest quality such as commercial
paper, banker's acceptance, corporate notes and repurchase
agreements. Because of the short maturities and high quality,
securities in this fund are considered practically risk free.
On September 30, 1991, investments held by the Village totaled
$5,015,722, which is detailed in Note 2, Notes to Financial
Statements. The average yield on investments maturing during the
year was 7.46$ and the average yield on money market investment
accounts was 4.80.
Risk Management
During 1991, 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.
9
OTHER INFORMATION
Independent Audit
State Statutes require an annual audit by independent
certified public accountants. The accounting firm of Nowlen, Holt
& Miner, P.A., CPA's, was selected to conduct the Village audit.
The auditor's report on the general purpose financial statements is
included in the financial section of this report.
Awards
The Government Finance Officers Association (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to
the Village for its comprehensive annual financial report for the
fiscal year ended September 30, 1990. This was the ninth consecu-
tive 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 comprehen-
sive 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.
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 Bill C. Kas avelis
Village Manager Finance Dir ctor
10
Certificate of
Achievement
for Excellence
in Financial
Keporting
Presented to
Village of Tequesta,
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 1990
A Certificate of Achievement for Excellence in Financial
Reporting is Presented by the Govemment Financial Officers
Association of the United States and Canada to
govemment units and public employee retirement
systems whose comprehensive annual financial
reports (CAFR's) achieve the highest
standards in govemment accounting
and financial reporting.
'pGE OFp~~
4~S OF THE F9S
W UMRED STATES H
IIMD N
~~~~ ~ President
6 CDRPDRAiION
~Y
'O~ ~NIC\BO ~O ~I~
~~r~%~~~
Executive Director
11
VILLAGE OF TEQUESTA
ORGANIZATION CHART
Citizens
Village Council
Village Manager
N
Village Attorney
Department of Water Department of
Public Works Department Finance and
and Recreation Village Clerk
Building Police
Department Department
VILLAGE OF TEQIIESTA, FLORIDA
Council - Manager Form of Government
VILLAGE COIINCIL - 1990-1991
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 PIIBLIC ACCOIINTANTS
Nowlen, Holt & Miner, P.A.
13
THIS PAGE INTENTIONALLY LEFT BLANK
EVERETT B. NOWLEN, CPA (1830.1984)
EDWARD L HOLT, CPA
WIWAM 8. MMVER, CPA
ROBERT W. HENDRIX. JR.. CPA
JANET R. BARICEVICH. CPA
NOWLEN, HOLT & 1VYINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
215 FIFTH STREET
SUITE 200
POST OFFICE BOX 347
WEST PALM BEACH, FLORIDA 33402.0347
TELEPHONE (407- 659-3060
FAX (407) 835.0628
KATHLEEN A. MINER. CPA
KIM HATCHER BEAUMONT, CPA
MARILVN ROBERTS. CPA
R. GREGORY SMITH, CPA
ROBERT W. HELMREICH, CPA
TERRY L. MORTON. JR.. CPA
N. RONALD BENNETT, CPA
J. MICHAEL STEVENS. CPA
ROBIN A. KOCIELKO. CPA
INDEPENDENT AUDITOR'S REPORT
The Honorable Mayor and Village Council
Village of Tequesta
Tequesta, Florida
MEMBERS
AMERICAN INSTITUTE OF
CERTIFIED PUBLIC ACCOUNTANTS
FLORIDA INSTITUTE OF
CERTIFIED PUBLIC ACCOUNTANTS
ACCOUNTING FIRMS ASSOCIATED INC.
BELLE GLADE OFFICE
333 S.E. 2ntl STREET
POST OFFICE BOX 338
BELLE GLADE, FLORIDA 33430-0338
TELEPHONE (407) 996.5812
FAX (407) 998.8248
We have audited the accompanying general purpose financial
statements of the Village of Tequesta, Florida, as of September 30,
1991, and for the year then ended, 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, in all material aspects, the financial
position of the Village of Tequesta, Florida, as of September 30,
1991, 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.
14
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 nonaccounting 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.
December 9, 1991
15
GENERAL PURPOSE FINANCIAL STATEMENTS
VILLAGE OF TEQUESTA, FLORIDA
Combined Balance Sheet - All Fund Types and Account Groups
September 30, 1991
Assets
Governmental Fund Types
Special Debt Capital
General Revenue Service Project:
Cash and cash equivalents $
Cash with fiscal agent
Investments
Accounts receivable
(net of allowance for
uncollectibles)
Due from other funds
Due from other governments
Inventories of supplies -
Unamortized debt issue costs
Restricted assets
Cash and cash equivalents
Investments
Fixed assets
Amount available in debt
service fund
Amount to be provided for
retirement of general
long-term debt
182,598 $ 67,420 $ 10,117
58,545
892,162 118,861
6,857
3,424
735
15,100
$ 80, 06F
150, 74"
Total assets X1,085,776 82 520 187 523 230 81F
16
Proprietary Fiduciary
Fund Type Fund Tyoes Account Groups
Trust General General Totals
and Fixed Long-Term (Memorandum
Enterprise Agency Assets Debt Only)
$ 96,841
2,267,859
199,001
23,481
19,977
41,132
47.9,549
1,475,172
4,504,672
110,921
1, 575
1,037,349
128,978
59,107,684
628,066
5112,496 $1,037,349 X757,044
$ X437,044
~ 58,545
3,540,550
205,858
40,156
3,424
20,712
41,132
V479,549
1,475,172
5,542,021
128,978
628.066
$12.601.207_
(Continued)
17
VILLAGE OF TEQUESTA, FLORIDA
Combined Balance Sheet - All Fund Types and Account Groups
September 30, 1991
(Continued)
Liabilities and fund equity
Liabilities
Accounts pa able
Accrued liabilities
Matured interest pa able
Matured bonds pa able
Payable from restricted
assets
Deposits
Due to other funds
Due to other governments
Deferred revenue
Deferred compensation
payable
Contracts payable
Obligations under
capitalized leases
Improvement revenue bonds
ayable
Wa~er refunding revenue
bonds payable
Unamortized debt discount
Other liabilities
Total liabilities
Fund equity
Investments in general
fixed assets
Contributed capital
Retained earnings
Reserved for revenue bond
debt service and capital
improvements
Unreserved
Fund balances
Reserved for:
Inventory.of supplies
Debt service
Law enforcement
Recreation and parks
Encumbrances
Unreserved
Designated for:
Subsequent year's
expenditures
Debt service
Undesignated
Total fund equity
Total liabilities and
fund equity
Governmental Fund Types
Special Debt Capital
General Revenue Servile Project
$ 68,135 $
5,665
25,056
1,509
3,690
35,025
$ $ 3 , 51.
40, 001
28,545
30,000
104,-055 35.025 58,545 43.518
735
89,122
2,123
89,600
5,600 79,300
39,378
889,741 41,895 107
997
.
981.721 47,495 _128,978 187,297
$1,085,776 82 520 187 523 230 815
18
Proprietary Fiduciary
Fund Tyke Fund T yes Account Grou s
Trus Genera Genera Totals
and Fixed Long-Term (Memorandum
Enterprise Agency Assets Debt Only)
$ 42,987
4,328
89,849
$ 114,640
139,842
28,545
30,000
176,650
15, 100
2,867
14,833
13,199
5,415
1,035,000
(18,897)
7.413
1,_298,895
2,878,015
1,778,071
3,152,703
110,921
110,921
1,575
17,195
650,000
757,044
1,037,349
7,808,789 1.575 1.037,349
$9,107,684 112 496 X1,037,349 757 044
See notes to financial statements.
176,650
40,156
4,376
53,548
110,921
13,199
22,610
650,000
1,035,000
(18,897)
7,413
2,408,003
1,037,349
2,878,015
1,778,071
3,152,703
735
89,600
1,575
89,122
2,123
84,900
39,378
1 039,633
10,193,204
$12,601,207
19
VILLAGE OF TEQUESTA, FLORIDA
Combined Statement of Revenues, Expenditures, and
Changes in Fund Balances -
Al1 Governmental Fund Types and Expendable Trust Funds
For the Fiscal Year Ended September 30, 1991
General
Revenues
Taxes $1,851,620
Licenses and permits 76,840
Intergovernmental 384,623
Charges for services 17,442
Fines and forfeits 38,035
Interest 91,917
Miscellaneous 21,696
Intrrgovernmental services 108.000
Total revenues 2,590.173
Expenditures
Current
General government 616,142
Public safety 1,938,477
Physical environment 5,550
Transportation 383,982
Human services - 2,879
Culture/recreation 158,740
Capital outlay
Debt service
Principal retirement
Interest
Fiscal charges
Total expenditures 3,105,770
Excess of revenues over (under) expenditures (515.597)
Other financing sources (uses)
Proceeds from capital lease 18,087
Operating transfers in 800,000
Operating transfers out (63,836)
Total other financing sources (uses) 754,251
Excess of revenues and other sources over
(under) expenditures and other uses 238,654
Fund balances, October 1, 1990 743,067
Fund balances, September 30, 1991 $ 981,721
20
Fiduciary
Governmental Fund Types Fund Type Totals
Special Debt Capital Expendable (Memorandum
Revenue Service Projects Trust Fund Only
$ 694,337 $ $ $ $2,545,957
76,474 153,314
129,216 513,839
17,442
1,575 39,610
8,768 10,990 111,675
21,696
108,000
900,027 8,768 10,990 1,575 3,511,533
616,142
1,938,477
5,550
383,982
2,879
158,740
173,019 173,019
30,000 30,000
57,090 57,090
617 617
87,707 173.019 3,366,496
900,027 (78,939) (162,029) 1,575 145,037
18,087
80,000 121,586 1,001,586
(880,000) (943,836)
(880,000) 80,000 121,586 75,837
20,027 1,061 (40,443) 1,575 220,874
27,468 127,917 227,740 1,126,192
$ 47,495 128 978 187.297 1 575 $1,347,066
See notes to financial statemen ts.
21
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, 1991
General Fund
Variance
Favorable
Budget Actual (Unfavorable
Revenues
Taxes $1,811,382 $1,851,620 $ 40,238
Licenses and permits 87,750 76,840 (10,910)
Intergovernmental 354,240 384,623 30,383
Charges for services 12,900 17,442 4,542
Fines and forfeits 40,750 38,035 (2,715)
Interest 75,000 91,917 16,917
Miscellaneous 3,200 21,696 18,496
Intragovernmental services 108,000 108,000
Total revenues 2,493.222 2,590,173 96,951
Expenditures
Current
General government 641,580 616,142 25,438
Public safety 2,020,375 1,938,477 81,898
Physical environment 14,500 5,550 8,950
Transportation _ 429,422 383,982 45,440
Human services 5,125 2,879 2,246
Culture/recreation 129,530 158,740 (29,210)
Capital outlay
Debt service
Principal retirement
Interest
Fiscal charges
Total expenditures 3,240,532 3,105,770 134,762
Excess of revenues over
(under) expenditures (747,310) (515,597) 231,713
Other financing sources (uses)
Proceeds from capital lease 18,087 18,087
Operating transfers in 800,.000 800,000
Operating transfers out (61,250) (63,836) (2,586)
Total other financing sources
(uses) 738,750 754,251 15,501
Excess of revenues and other
sources over (under)
expenditures and other uses $ (8,560) 238,654 247 214
Fund balances, October 1, 1990 743,067
Fund balances, September 30, 1991 $ 981,721
22
Special Revenue Fund Debt Service Fund
Variance - Variance -
Favorable Favorable
Budget Actual LUnfavorable) Budget Actual (Unfavorable)
$ 661,200 $ 694,337 $ 33,137 $
73,500 76,474 2,974
129,245 129,216 (29)
7,500
863.945 900,027 36,082
8,768 1,268
7,500 8,768 1,268
30,000 30,000
57,090 57,090
775 617 158
87,865 87,707 158
863,945 900.027 36,082 X80,365) (78,939) 1,426
80,000 80,000
(880,000) (880,000)
(880,000) (880,000) 80,000 80,000
$ (16,055) 20,027 $ 36.082 S (365') 1,061 S 1,426
27.468 127,917
S 47,495 $ 128,978
(Continued)
23
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, 1991
(Continued)
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeits
Interest
Miscellaneous
Inteagovernmental services
Total revenues
Expenditures
Current
General government
Public safetx
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)
Proceeds from capital lease
Operating transfers in
Operating transfers out
Capital Projects Fund
Variance -
Favorable
Budget Actual (Unfavorable)
4,000
10,990 6,990
4.000 10,990 6,990
322,481 173,019 149,462
322,481 173,019 149,462
(318,481) (162,029) 156,452
119,000
121,586
2,586
Total other financing sources
(uses) 119,000 121,586 2,586
Excess of revenues and other
sources over (under) expenditures
and other uses $ (199,481) (40,443) S 159,038
Fund balances, October 1, 1990
Fund balances, September 30, 1991
24
227,740
$ 187,297
Totals (Memorandum Only)
Variance -
Favorable
Budaet Actual (Unfavorable,
$ 2,472,582
161,250
483,485
12,900
40,750
86,500
3,200
108,000
$ 2,545,957
153,314
513,839
17,442
38,035
111,675
21,696
108,000
$ 73,375
(7,936)
30,354
4,542
(2,715)
25,175
18,496
3,368,667
641, 580
2,020,375
14,500
429,422
5,125
129,530
322,481
30,000
57,090
775
3,650,878
3,509,958
616,142
1,938,477
5,550
383,982
2,879
158,740
173,019
30,000
57,090
617
3,366,496
(282,211) 143.462
999,000
(941,250)
18,087
1,001,586
(943,836)
57,750
S (224,461)
75,837
219,299
_141.291
25,438
81,898
8,950
45,440
2,246
(29,210)
149,462
158
284,382
425,673
18,087
2,586
(2,586)
18,087
443 760
1,126,192
S 1,345,491
See notes to financial statements.
25
VILLAGE OF TEQUESTA, FLORIDA
Statement of Revenues, Expenses and
Changes in Retained Earnings -
Proprietary Fund Type
For the Fiscal Year Ended September 30, 1991
Operating revenues
Charges for services
Operating expenses
Purchased services
Personal services
Contractual services
Supplies
Heat, light and power
Repairs and maintenance
Depreciation
Total operating expenses
Operating income
Nonoperating revenues (expenses)
Interest income
Interest expense and fiscal charges
Loss on disposal of equipment
Gain on sale of land
Total nonoperating revenues (expenses)
Income before operating transfers
Operating transfers (out)
Net income
Retained earnings, October 1, 1990
Retained earnings, September 30, 1991
See notes to financial statements.
Proprietary
Fund Type
Enterprise
$2,239,044
717,545
418,991
209,544
40,736
90,993
94, 189
309.214
1,881,212
357.832
260,707
(107,566)
(46, 971)
91.500
197,670
555,502
(57,750)
497,752
4,433.022
X4,930,774
26
VILLAGE OF TEQUESTA, FLORIDA
Statement of Cash Flows -
Proprietary Fund Type
For the Fiscal Year Ended September 30, 1991
Proprietary
Fund Type
Enterprise
Cash flows from operating activities:
Net operating income $ 357,832
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation 309,214
Changes in assets and liabilities:
(Increase) decrease in: -
Accounts receivable 14,508
Inventories 776
Due from other funds (23,481)
Increase (decrease) in:
Accounts payable 19,194
Accrued liabilities 948
Deposits 6,683
Deferred revenue 667
Other liabilities 3,079
Due to other funds 5,783
Net cash provided by operating activities 695,203
Cash flows from noncapital financing activities:
Operating transfer to other fund (57,750)
Net cash used for noncapital financing
activities (57,750)
(Continued)
27
VILLAGE OF TEQUESTA, FLORIDA
Statement of Cash Flows -
Proprietary Fund Type
For the Fiscal Year Ended September 30, 1991
(Continued)
Proprietary
Fund Type
Enterprise
Cash flows from capital and related financing
activities:
Proceeds from sale of fixed assets $ 92,211
Capital contributions 98,889
Acquisition and construction of fixed assets (116,563)
Principal paid on revenue bonds and
equipment lease - (90,273)
Interest paid on revenue bonds (94,236)
Fiscal charges paid on revenue bonds (2,123)
Reduction of contracts payable (50,010)
Net cash used for capital and related
financing activities (162,105)
Cash flows from investing activities:
Proceeds from redemption of investments 450,541
Purchase of investments (1,312,464)
Interest received on investments 261.186
Net cash used for investing activities (600,737)
Net decrease in cash and cash equivalents (125 389)
Cash and cash equivalents, October 1, 1990 701.779
Cash and cash equivalents, September 30, 1991 $ 576,390
Noncash Capital and Related Financing Activities
The Enterprise Fund entered into a capital lease to purchase a
copier which cost $5,688. Monthly installments of $273 were
applied to the reduction of the capital lease obligations.
During the year, subcontractor's contributions of improvements to
the water distribution system amounted to $72,469.
See notes to financial statements.
28
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1991
NOTE 1 - SO1~II~IARY OF SIGNIFICANT ACCOIINTING POLICIES
The Reporting Entity
The Village of Tequesta is a municipal corporation organized in
1957 under the laws of the State of Florida (Florida Statutes,
Chapter 165). The Village has a Council-Manager form of govern-
ment. The Village's major operations include public safety
(police), streets and roads, culture and recreation, public
improvements, planning and zoning, water service and general and
administrative.
In accordance with the provisions of Statement 3 issued by the
National Council on Governmental Accounting entitled, "Defining the
Governmental Reporting Entity," as endorsed by the Governmental
Accounting Standards Board (GASB), the basic, but not the only,
criterion for including a potential component unit within the
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, 1991
NOTE 1 - SQMMARY OF SIGNIFICANT ACCOIINTING POLICIES (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 are accounted for
through a separate set of self-balancing accounts that comprise
its assets, liabilities, fund equity, revenues and expenditures
or expenses as appropriate. An account group, on the other hand,
is a financial reporting device designed to provide 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, 1991
NOTE 1 - BIIPIIKARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Basis of Presentation - Fund Accountinv (Continued)
Governmental Fund Types (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 Type
Enterprise Fund
The Enterprise Fund is used to account for operations that are
financed and operated in a manner similar to private business
enterprises --where the intent of the governing body is that
the costs (expenses, including depreciation) of providing
goods or services to the general public on a continuing basis
be financed or recovered primarily through user charges. The
Enterprise Fund of the Village is the Water Fund which
accounts for the provision of water services and refuse and
recycling services to the residents of the Village and some
residents of the County. All activities necessary to provide
such services are accounted for in this fund including, but
not limited to, administration, operations, maintenance,
financing and related debt service and billing and collection.
31
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1991
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Basis of Presentation - Fund Accounting (Continued)
Proprietary Fund Type (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.
Capital outlays for assets that cost $500 or more and have
expected lives of greater than one year are capitalized and
depreciated in the proprietary fund. Depreciation of exhaust-
ible fixed assets 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
Fiduciary Fund Types
Expendable Trust and Agency Funds
The Expendable Trust Fund accounts for forfeitures
received by the police department to be expended for
certain law enforcement purposes as prescribed by Florida
Statute Chapter 932.704.
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, 199-1
NOTE 1 - SOMMARY OF SIGNIFICANT ACCOIINTING POLICIES (Continued)
Basis of Presentation - Fund Accountinct (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 balances (net current assets) are
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. The Village capitalizes assets that cost
$500 or more and have expected lives of greater than one
year. No depreciation has been provided on general fixed
assets. All fixed assets are valued at historical cost
or estimated historical cost if actual historical cost is
not available. Donated fixed assets are valued at their
estimated fair market value on the date donated.
33
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1991
NOTE 1 - SIIMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Basis of Presentation - 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 Accountings
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, the agency fund and the expendable trust
fund are accounted for using the modified accrual basis of
accounting. Under the modified accrual basis of accounting,
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, 199-1
NOTE 1 - SQMMARY OF SIGNIFICANT ACCOIINTING POLICIES (Continued)
Basis of Ac ountin (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.
Total 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.
Budgets and Budaetarv 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, 1991
NOTE 1 - SIIMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Budgets and Budgetary Accounting (Continued)
2. Public hearings are conducted to obtain taxpayer com-
ments.
3. Prior to October 1, the budget is legally enacted through
passage of a resolution.
Changes or amendments to the total budgeted expenditures of the
Village total functional 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 functional level within funds and expenditures
may not legally exceed budgeted appropriations at that level.
On April 25, 1991, 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.
Encumbrances
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, 1991
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Investments
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.
Revenue Recognition
Ad Valorem Taxes
Ad valorem taxes are assessed as of January 1 and billed
the following October. They are due and payable on
November 1 of each year or as soon thereafter as the
assessment roll is certified and delivered to the Tax
Collector. These taxes are collected by the County and
remitted to the Village. Revenue is recognized at the
time monies are received from the County. All unpaid
taxes become delinquent on April 1 following the year in
which they are assessed. Discounts are allowed for early
payment at the rate of 4~ in the month of November, 3$ in
the month of December, 2$ in the month of January and 1$
in the- month of February. The taxes paid in March are
without discount. At September 30, unpaid delinquent
taxes, if any, are reflected as a receivable on the
balance sheet and as deferred revenue.
37
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1991
NOTE 1 - SIIMMARY OF SIGNIFICANT ACCOIINTING POLICIES (Continued)
Revenue Recognition (Continued)
Ad Valorem Taxes (Continued)
The Village does not accrue property tax revenues since
the collection of these taxes coincides with the fiscal
year in which levied, and since the Village consistently
has no material uncollected property taxes at year end.
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. Interest is recognized when earned at _
which time it is considered measurable and available.
Interfund Transactions
Following is a description of the basic types of interfund transac-
tions made during the year and the related accounting policy:
Transactions for services rendered or facilities
provided. These transactions are recorded as revenue in
the receiving fund and expenditures in the disbursing
fund.
Transactions to transfer revenue or contributions from
the fund budgeted to receive them to the fund budgeted to
expend them. These transactions are recorded as operat-
ing transfers in and out.
38
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1991
NOTE 1 - SIIPII~ARY OF SIGNIFICANT ACCOIINTING POLICIES (Continued)
Reserved Fund Balance
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.
NOTE 2 - CASH AND INVESTMENTS
Cash and Cash Equivalents
At year end, the carrying amount of the Village's deposits was
$916,143 and the bank balances were $1,082,995. 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, 1991
NOTE 2 - CASH AND INDESTMENTS (Continued)
Investments
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.
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 $33,104.
The Village's Deferred Compensation plan has funds held by ICMA
Retirement Corporation. The plan offers six different portfolios
of mutual funds.
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, 1991
NOTE 2 - CASH AND INVESTMENTS (Continued)
Investments (Continued)
Obligations of United
States government
Investment in:
State investment pool
Deferred compensation
mutua 1 fund
Cate4ory Carrying
1 _ Amount
$601 $ 601,896
4,302,905
110,921
$5,015,722
Market
Value
$ 631,628
4,302,905
110,921
$5,045,454
NOTB 3 - RESTRICTED ASSETS
Restricted assets as of September 30, 1991 consist of the following
accounts:
Investments
Meter Deposit Accounts
Capital Improvement
Accounts
1985 Bond Accounts:
Sinking Account
Bond Amortization
Account
Reserve Account
Renewal and Replace-
ment Account
$ 33,850 $ 142,800 $ 176,650
104,509 431,180 535,689
4,626 457 5,083
283,792 602,226 886,018
45,853 298,509 344,362
6,919 6,919
479 549 1,475,172 $1.954,721
41
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1991
NOTE 4 - CCOUNTS RECEIVABLE - ENTERPRISE FIIND
Accounts receivable of $199,001 are stated net of a $2,000
allowance for doubtful accounts and consist of billed revenues
totaling $175,995 and unbilled revenues totaling $25,006.
NOTE 5 - COMPONENTS OF FIRED ASSETS
A summary of changes in general fixed assets follows:
Balance Balance
October 1, September 30,
1990 Additions Deletions 1991
Land $ 49,728 $ 35,000 $ $ 84,728
Buildings 294,333 294,333
Improvements other
than buildings 133,265 7,017 140,282
Equipment 473,663 77,870 33,527 518.006
950 989 119 887 33 527 51,037.349
The components of fixed assets at September 30, 1991 are summarized
as follows:
General
Land
Buildings
Improvements other
than buildings
Machinery and
equipment
Construction in
progress
Accumulated depreciation
Total
Enterprise Fixed Assets
Fund Account Group Total
$ 92,042 $ 84,728 $ 176,770
388,592 294,333 682,925
6,789,934 140,282 6,930,216
191,271
22,965
7,484,804
2,980,132
$4,504,672
518,006 709,277
1,037,349 8,522,153
2 980 3
$1,037,349 $5,542,021
42
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1991
INED BENEFiT__PENSION PL
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, 1991 was $1,522,823,
which is also the total payroll for the Village.
All Village full-time employees are eligible to participate in the
System as authorized by Chapter 121 of the Florida Statutes. The
Florida Retirement System has five classes of membership. Village
employees belong to three of the five classes, the senior
management service class (SMSC) consisting of the Village Manager,
the regular class consisting of administrative, operations and
clerical employees, and the special risk class (SRC) consisting of
law enforcement officers. Employees who retire at or after age 62
(age 55 for SRC members) with ten years of credited service are
entitled to a retirement benefit, payable monthly for life, equal
to 2.0$ (SMSC), 1.60 to 1.68$ (regular class) and 2.02 to 3.0$
(SRC) 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 f ive 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 ten years of service
(seven years for SMSC members). 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, 1991 was $275,525. The actual
contribution made was $275,525 (General Fund $234,751, Enterprise
Fund $40,774). The contribution equaled 18.09$ of current covered
payroll. The Village is required by statute to contribute at rates
as of September 30, 1991 of 18.39$ of covered payroll for senior
management service class, 15.72$ of covered payroll for regular
class and 25.52$ 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, 1991
NOTE 6 - DEFINED BENEFIT 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, 1991 (the latest available information) for
the System as a whole, determined through an actuarial valuation
performed as of July 1, 1991, was $33.8 billion. The System's net
assets available for benefits on that date (valued at market) were
$23.8 billion, leaving an unfunded pension benefit obligation of
$10 billion. The Villages actuarially determined contribution
requirement represents less than one percent of all contributions.
Ten-year historical trend information showing the System's progress
in accumulating sufficient assets to pay benefits when due is pre-
sented in the Systems June 30, 1990 comprehensive annual-financial
report.
NOTE 7 - DEFERRED COMPENSATION PLAN
The Village offers its employees a deferred compensation plan
created in accordance with Internal Revenue Code Section 457. The
plan, available to all Village employees, permits them to defer a
portion of their salary until future years. The deferred 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 Villages 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, 1991
NOTE 7 - DEFERRED 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.
Investments are managed by the plans trustee under one of six
investment options, or a combination thereof. The funds are
invested at the discretion of individual plan participants.
NOTE 8 - COMPENSATED ANNOAL LEAVE AND SICK PAY
As of September 30, 1991, the total liability for compensated
absences was $100,287. 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, 1991, the
long-term amount was $89,849. The liability recorded by the
Enterprise Fund was $10,438
NOTE 9 - RIBR MANAGEMENT
The Village is exposed to various risks of loss related to torts;
theft of, damage to, and destruction of assets; errors and
omissions; injuries to employees; and natural disasters. The
Village continues to purchase commercial insurance to cover the
various risks. Retention of risks is limited to those risks that
are uninsurable and deductibles ranging from $250 to $10,000 per
occurrence.
Major uninsurable risks include damages to infrastructure assets.
Since the amount of loss cannot be reasonably estimated and the
likelihood of occurrence is not determinable, no provision for
losses is reflected in the financial statements. There were no
settled claims which exceeded insurance coverage during the past
three fiscal years.
45
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1991
NOT$ 10 - LEASE COMMITMENTS
Durinq the fiscal year, the Village entered into two capital lease
agreements to purchase office equipment. Each lease is for a 36-
month term with monthly lease payments of $567 (General Fund) and
$178 (Water Fund). The Water Fund Iease provides for a purchase
option for $825. The lease expires in July, 1992. There are no
contingent rents. The office equipment is capitalized at cost in
the General Fixed Asset Group - $18,087 and Enterprise Fund -
$5,688. No amortization was accumulated during the fiscal year.
NOTE 11 - CONTRACTS PAYABLE AND COMMITMENTS
As of September 30, 1991, the Village had the following contracts
payable and commitments with respect to unfinished capital
projects:.
~prietary Fund - Contracts Payable
Expected Date
capital Project of Completion
Old Dixie Highway -
Water Main Conflicts S13.198 January, 1992
13 19
Proprietary Fund - Commitments
Remaining Expected Date
Capital Project Commi tments of Completion
Computer Conversion $ $ 78,949 December, 1991
Telemetry Remote Sites 10,195 December, 1991
Old Dixie Highway:
.Water Main Relocation 68,628 January, 1992
Water Main Conflicts 85,977 154,605 January, 1992
Storage Tank & Wells
Project:
Storage Tank 525,469 March, 1992
Well ,~24 35,500 September, 1992
Wells X25, #26, ,~27 84,800 645,769 September, 1992
889 518
46
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1991
NOTE 12 - LONG-TERM AGREEMENT TO PIIRCHASE WATER
On July 15, 1976, the Village entered into an agreement with Tri-
Southern Utilities Company, Inc. (the agreement subsequently
assumed by the Town of Jupiter) to purchase water for the Village's
water system for a period of 30 years. Rates for water service are
based on wholesale rates. The Village is billed monthly based upon
a 1,500,000 gallons per day contracted minimum.
NOTE 13 - PROJECTS ENTERED INTO WITH 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, 1991 fire protection and emergency medical
service expense was $573,925.
MOTE 14 - REFDBE/RECYCLING CHARGES
On September 14, 1990, the Village adopted an ordinance providing
for user charges and fees to cover related costs for refuse and
recycling collection services. The ordinance also provided for the
removal of the millage required to fund such payment from the
(General Fund) Ad Valorem Millage rate for fiscal year 90/91 and
thereafter. As a result, refuse and recycling fees of $259,531 for
the fiscal year ended September 30, 1991 were billed along with the
water service charges and were appropriately accounted for in the
Enterprise Fund.
NOTE 15 - LONG-TERM DEB
Water Fund
Water Refunding Revenue Bonds, Series 1985 were issued pursuant to
Resolution 2-84/85 enacted by the Village Council on October 23,
1984, for a total principal amount of $1,525,000.
Resolution 2-84/85 provides for the disposition of all revenues
derived from the operation of the water system. Revenues are first
to be used for payment of all current operating expenses. Revenues
are next to be used for the required payments for principal and
interest on, and reserve for, the outstanding water refunding
revenue bonds.
47
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1991
NOTE 15 - LONG-TERM DEBT' (Continued)
Neater Fund (Continued)
Revenues are next to be used to maintain the renewal, replacement
and improvement of the water system. Such payments to the renewal
and replacement fund are made monthly equal to one-twelfth of the
estimated annual cost of extensions, additions to, enlargements and
replacement of capital assets of the system and emergency repairs
thereto, such cost to be established by recommendation of the con-
sulting engineer. Finally, any revenues remaining may be used for
any lawful purpose.
The Resolution requires the establishment of the following
accounts:
Account Puraose
Revenue Account To collect the entire gross revenues
derived from the system, except
investment earnings.
Operation and To pay fully accrued operating
Maintenance Account expenses.
Sinking Account To accumulate sufficient funds to
meet annual debt service requirements
through transfers from the Revenue
Account.
Bond Amortization Established within the Sinking
Account Account to meet principal payment on
the debt.
Reserve Account To accumulate funds for payment of
principal and interest only if funds
in the Sinking Account are insuffi-
cient.
Renewal and Replacement To accumulate funds for the purpose
Account 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, 1991
NOTE 15 - LONG-TERM DEBT (Continued)
6~ater Fund (Continued)
The annual requirements to amortize the debt are as follows:
Fiscal Year Ending
September 30
1992
1993
1994
1995
1996
1997
Principal Interest Total
$ 50,000
105,000
185,000
275,000
300,000
120 000
$ 44,503
83,005
74, 199
55,142
30,593
5.340
$ 94,503
188,005
259,199
330,142
330,593
125, 340
S1.035.000 S 292.782 $1.327.782
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
1992 $130,000
1993 140,000
1994 75.000
345 000
Debt issue expense and bond discount on the Water Refunding Revenue
Bonds, Series 1985, are being amortized over the life of the bonds.
49
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1991
NOTE 15 - LONG-TERM DEBT (Continued)
General Long-Term Debt
This debt consists of Improvement Revenue Bonds Series 1979, dated
October 1, 1979, in the amount of $910,000 with interest rates
ranging from 8.30$ to 8.50$. Resolution 10-78/79 provided for the
creation of a special fund known as the Improvement Bond Revenue
Fund (Revenue Fund) and the Improvement Bond Sinkinq Fund (Debt
Service 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, 1991, $650,000 of
this issue, which consists of term and serial bonds, were
outstanding. The disposition of monies in the Revenue Fund are
first to the Debt Service Fund in the amount of the required
principal and interest payments. A reserve account was established
in the Debt Service Fund to provide for the maximum debt service
requirement in any fiscal year. This account is fully funded as of
September 30, 1991. Finally, any revenues remaining may be used
for any lawful purpose. The bonds will be repaid through the Debt
Service Fund.
Annual requirements to amortize this debt are as follows:
Coupon
9ctober 1. Rate Principal Interest Payments
1992 8.40$ $ 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 650 000 422 940 $1.072.940
50
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1991
NOTE 15 - LONG-TERM DEHT (Continued)
T9ta1 Lonv-Term Debt
The annual requirements to amortize all outstanding debt including
interest payments of $718,444 as of September 30, 1991 are as
follows:
Fiscal Capital
Year Ending Compensated Lease Water Improvement
September 30 Absences Obligations Revenue Revenue Total
1992 $ $ 8,940 $ 94,503 $ 89,600 $ 193,043
1993 8,940 188,005 86,660 283,605
1994 7,452 259,199 88,720 355,371
1995 330,142 85,360 415,502
1996 330,593 87,000 417,593
1997
1998 125,340 83,220 208,560
1999 84,440 84,440
2000 85,240 85,240
2001 80,620. 80,620
2002 81,000 81,000
2003 80,960 80,960
2404 80,500 80,500
Various
89,849 59,620 59,620
_ 89.849
89 849 25 332 51,327,782 X1,072.940 $2,515,903
Annual maturities of long-term compensated absences cannot be
reasonably determined.
51
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1991
NOTE 15 - LONG-TERM DEBT (Continued)
changes in Long-Term Debt
Transactions for the Village for the year ended September 30, 1991
are summarized as follows:
General Long-Term Debt Group _ Enterprise Funds
Capital Improvement Water Capital
Compensated Lease Revenue Revenue Lease
Absences Obligations Bonds Bonds Obligations
Lang-term debt
at October 1,
1990 $76,227
Plus:
Addition of
new debt
Addition to
compensated
absences 13,622
Less: repay-
ments of debt
Long-term debt at
September 30,
1991
Merest Expense
89 849 17 195
18,087
$680,000
650 000
$1,125,000
90.000
5,688
5 415
$1,035.000
Interest expense on long-term debt for the fiscal year ended
September 30, 1991 totaled $151,568 (general long-term debt -
$57,332; Enterprise Fund - $94,236).
NOTE 16 - DEFEASANCE OF PRIOR DEBT
In prior years, the Village defeased the 1978 Series, $3,915,000
Water Revenue Refunding Bonds by placing the proceeds of new bonds
in an irrevocable trust to provide for all future debt service
payments on the old bonds. Accordingly, the trust account assets
and the liability for the defeased bonds are not included in the
Village's financial statements. At September 30, 1991, $3,915,000
of bonds outstanding and interest of $3,753,343 are considered
defeased.
52
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1991
NOTE 17 - INTERFIIND RECEIVABLEB AND PAYABLES
Individual fund interfund receivables and payables at September 30,
1991 are as follows:
Fund
Znterfund Interfund
Receivables P~yables
General Fund
Special Revenue Fund
Expendable Trust Fund
Enterprise Fund
15,100
1,575
23,481
40 156
NOTE 18 - INTERFIIND ADMINISTRATIVE FEE
$25,056
15, 100
40 156
During the year ended September 30, 1991, the Enterprise Fund
remitted $108,000 to the General Fund for administrative management
fees. This amount is reflected as intragovernmental services
revenue in the General Fund and as contractual services operating
expenses in the Enterprise Fund.
NOTE 19 - CONTRIBIITED CAPITAL - ENTERPRISE FIIND
The changes in contributed capital consists of the following:
Capital
Developer Improvement
Contributions Charges Total
Contributed capital
at October 1, 1990 $ 986,918 $1,719,739 $2,706,657
Plus: contributions 72,469 98,889 171,358
Contributed capital at
September 30, 1991 X1,059,387 $1,818,628 $2,878.015
53
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1991
OTE 2 O - ~,ITIGATION
The Village is involved in right-of-way property acquisitions
pending as of September 30, 1991. The appraised values of the
property was paid to the court pending settlement and estimated
attorney fees of $40,000 were accrued as of September 30, 1991.
The Village does not anticipate any liabilities in excess of those
paid or accrued.
The Village has filed suit against a surety in the amount of
$59,404 plus costs and attorney fees. The suit is based upon the
claim for breach of contract for installation of certain
landscaping and maintenance thereof. No estimate can be made of
the amount of the award, if any, that will actually be received.
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.
54
SUPPLEMENTAL INFORMATION
GENERAL FUND
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Revenues - Budget and Actual
For the Fiscal Year Ended September 30, 1991
Taxes
Current ad valorem taxes
Delinquent ad valorem taxes
Total taxes
Licenses and permits
Building permits
Other licenses and permits
Total licenses and permits
Intergovernmental
Cigarette tax
Alcoholic beverage licenses
One-half cent sales tax
County grants
Countywide registrations
Local option gas tax
Road and bridge tax
Recycling reimbursables
Miscellaneous
Total intergovernmental
Charges for services
Zoninq fees
Map sales
Certification, copying,
record search
Building inspection
Municipal police academy
Tennis lights
Total charges for services
Variance -
Favorable
Budget _ Actual Unfavorable)
$1,808,882 $1,846,288
2,500 _ 5.332
1.811,382 1.851.620
85,000
2,750
69,450
7.390
87.750
14,915
7,500
205,200
25,000
96,625
5,000
354.240
2,350
500
900
4,500
2,650
2,000
12 900
76,840
13,487
7,935
206,927
10,430
26,629
112,052
5,602
1,492
69
384.623
9,440
781
1,092
2,542
2,012
1.575
17,442
$ 37,406
2,832
40238
(15,550)
4.640
X10.910)
(1,428)
435
1,727
10,430
1,629
15,427
5,602
(3,508)
69
30L~83
7,090
281
192
(1,958)
(638)
(425)
4,542
(Continued)
55
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Revenues - Budget and Actual
For the Fiscal Year Ended September 30, 1991
(Continued)
Fines and forfeits
Court fines
Parking tickets
Total fines and forfeits
Interest
Tax collector
Investments
Total interest
Miscellaneous
Contributions for park land
Other
Police department
Total miscellaneous
Intragovernmental services
Administrative management -
water fund
Total intragovernmental
services
Total revenues
Budget
$ 40,000
750
40.750
75,000
75, 000
3,000
200
3, 200
Variance -
Favorable
Actual (Unfavorabl,e~
$ 37,165 $ (2,835)
870 120
38.035 (2,715)
3,034
88,883
91.917
3,034
13,883
16,917
13,845
5,768
2,083
21.696
13,845
2,768
1,883
18,496
108,000 108.000
108,000
$2,493,222
108, 000
$2,590,173
$ 96,951
56
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures - Budget and Actual
For the Fiscal Year Ended September 30, 1991
General government
Legislative
Travel and per diem
Other charges
Books, publications and
dues
Total legislative
Executive
Salaries
F.I.C.A.
Retirement
Life and health insurance
Worker's compensation
insurance
Professional services
Contractual services
Deferred compensation plan
Travel and per diem
Office machines maintenance
Other charges
office supplies
Rentals and leases
Books, publications, dues
Total executive
Variance -
Favorable
Budget _ Actual (Unfavorable)
$ 14,465 $ 12,039
500
3,, 885 3 , 882
18.850 15.921
128,750
10,325
21,975
16,955
121,819
9,952
21,970
15,759
890
16,450
7,750
3,320
8,970
2,430
1,105
2,625
1,505
2.32.5
225, 375
700
15,459
5,233
3,039
8,806
2,428
967
2,459
1,503
1,560
211.654
$ 2,426
500
3
2.929
6,931
373
5
1,196
190
991
2,517
281
164
2
138
166
2
765
13,721
(Continued)
57
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures - Budget and Actual
For the Fiscal Year Ended September 30, 1991
(Continued)
General government (continued)
Financial and administrative
Salaries
F.I.C.A.
Retirement
Life and health insurance
Worker's compensation
insurance
Professional services
Accounting and auditing
Travel and per diem
Other charges
Office supplies
Books, publications, dues
Office machines maintenance
Capital outlay
Machinery and equipment
Total financial and
administrative
Legal counsel
Legal services
Total legal counsel
Variance -
Favorable
Budget Actual (Unfavorable)
$ 98,800 $ 98,798 $ 2
7,630 7,627 3
15,615 15,347 268
11,800 11,534 266
665
2,425
21, 230
2,000
400
3,700
460
4,260
530
2,425
19,915
1,710
315
3,696
335
4,258
169. 485 166.490
85. 300 85,191
85, 300 85 f 191
Planning and zoning
Professional services
Other charges
Total planning and zoning
14,900
3,800
18,700
9,367
186
9.553
135
1,315
290
85
4
125
2
2,995
109
109
5, 533
3.614
9.147
(Continued)
58
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures - Budget and Actual
For the Fiscal Year Ended September 30, 1991
(Continued)
Variance
Favorable
Budget Actual (Unfavorable]
General government (continued)
Other general government
Life and health insurance $ 4,010 $ 4,007 $ 3
Other personal services 9,155 7,881 1,274
FICA taxes 405 401 4
Unemployment compensation
insurance 250 220 30
Professional services 5,160 2,120 3,040
Travel and per diem 630 630
Communication services 4,125 4,110 15
Transportation/postage 5,700 5,291 409
Utility services 7,875 5,303 2,572
Fire hydrant rental fees 11,400 11,400
Rentals and leases 6,345 4,725 1,620
Insurance 25,000 23,238 1,762
Village Hall maintenance 9,450 7,412 2,038
Printing and binding 525 59 466
Promotional activities 10,880 10,876 4
Other charges 2,625 2,511 114
Office supplies 4,150 3,357 793
Operating supplies 2,010 2,003 7
Books, publications, dues 1,575 743 832
Capital outlay
Improvements other than
buildings 7,025 7,017 8
Machinery and equipment 5,575 23,526 (17,951)
Debt service
Principal 891 (891)
Interest 242 (242)
Total other general government 123,870 127.333 (3,463)
Total general government 641,580 616,142 25,438
(Continued)
59
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures - Budget and Actual
For the Fiscal Year Ended September 30, 1991
(Continued)
Variance -
Favorable
Budget Actual (Unfavorable)
Public safety
Police department
Salaries $ 666,450 $ 641,743 $ 24,707
Overtime 38,675 37,447 1,228
F.I.C.A. 54,875 54,263 612
Retirement 160,415 150,808 9,607
Life and health insurance 87,415 71,669 15,746
Worker's compensation
insurance 39,245 35,641 3,604
Travel and per diem 3,065 2,489 576
Communication services 5,180 5,153 27
Rentals and leases 760 753 7
Insurance 21,565 21,562 3
Repairs and maintenance 19,105 18,164 941
Printing and binding 800 481 319
Other charges 8,760 3,201 5,559
Personnel training 6,515 5,966 549
Office supplies 2,135 1,983 152
Operating supplies 49,785 43,055 6,730
Books, publications, dues 1,055 976 79
Capital outlay
Machinery and equipment _ 521925 52,892 33
Total police department 1.218.725 1,148,246 70.479
Protective inspections
Salaries 132,425 130,930 1,495
F.I.C.A. 10,290 10,149 141
Retirement 20,500 20,323 177
Life and health insurance 19,675 18,436 1,239
(Continued)
60
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures - Budget and Actual
For the Fiscal Year Ended September 30, 1991
(Continued)
Public safety (continued)
Protective inspections
(continued)
Worker's compensation
insurance
Contractor services
Travel and per diem
Communication services
Insurance
Repairs and maintenance
Printing and binding
Other charges
Office supplies
Operating supplies
Books, publications, dues
Total protective inspections
Emergency and disaster relief
Civil preparedness
Disaster relief
Capital outlay
Machinery and equipment
Total emergency and disaster
relief
Variance -
Favorable
Budget Actual (Unfavorable)
$ 12,855
7,600
4,000
2,130
1,880
3,475
3,600
1,500
1,500
1,405
600
$ 12,844
7,194
3,089
2,125
1, 771
2,784
2,606
1,038
972
896
493
$ 11
406
911
5
109
691
994
462
528
509
107
223, 435
790
1,000
656
2,500
4.290 656
7.785
134
1,000
2.500
3.634
(Continued)
61
VILLAGE OF TEQUESTA, FLORIDA
General Fund -----
Schedule of Departmental Expenditures - Budget and Actual
For the Fiscal Year Ended September 30, 1991
(Continued)
Public safety (continued)
Fire protection and emergency
medical service
Contractual services
Total fire protection and
emergency medical service
Variance -
Favorable
Budget Actual (Unfavorable)
S 573,925 S 573,925
573,925 573,92
Total public safety
Physical environment
2~ 020,375 1,938,477
Recycling uncollectibles 2,000
Solid waste uncollectibles 6,900
Uniforms and equipment 5,600 5,550
Total physical environment
Transportation
Road and street facilities
Salaries
Overtime
F.I.C.A.
Retirement
Life and health insurance
Worker's compensation
insurance
Engineering services
Other contractual services
Travel and per diem
Communication services
81, 898
2,000
6,900
50
119,100 119,050 50
750 678 72
9,450 9,404 46
18,850 17,301 1,549
18,500 18,340 160
9,365 9,347 18
31,700 31,581 119
50,092 49,801 291
2,600 2,250 350
1,225 1,218 7
62
(Continued)
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures - Budget and Actual
For the Fiscal Year Ended September 30, 1991
(Continued)
Transportation (continued)
Road and street facilities
(continued)
Rentals and leases
Utility services
Street lights
Insurance
Repairs and maintenance
Other charges
Operating supplies
Road materials and supplies
Books, publications, dues
Capital outlay
Machinery and equipment
Improvements other than
buildings - replacement
of Royal Palms
Total transportation
Variance -
Favorable
Budget Actual jUnfavorablel
$ 980 $ 490 $ 490
21,700 21,620 80
22,000 21,115 885
8,600 8,570 30
56,225 48,398 7,827
500 239 261
6,400 4,690 1,710
5,500 2,588 2,912
275 264 11
21,010 3,462 17,548
24.600 13.576 11,024
429,422 383,982 45.440
Human services
Health - mosquito control
Salaries
Equipment maintenance
Other charges
Operating supplies
Personnel training
Total human services
1,300 255 1,045
1,450 1,355 95
50 50
1,625 1,159 466
700 60 640
5,125 2,879 2.246
(Continued)
63
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures - Budget and Actual
For the Fiscal Year Ended September 30, 1991
(Continued)
Culture/Recreation
Parks and recreation
Salaries
Overtime
F.I.C.A.
Retirement
Life and health insurance
Worker's compensation
insurance
Contractual services
Travel and per diem
Communication services
Utility services
Insurance
Repairs and maintenance
Other charges
Office supplies
Operating supplies
Books, publications, dues
Aid to government
organizations
Aid to private organizations
Programs
Capital outlay
Land
Playground park equipment
Variance -
Favorable
Budget Actual (Unfavorable)
$ 49,200 $ 49,106 $ 94
400 400
4,350 4,325 25
9,025 9,002 23
2,560 2,518 42
2,625 2,623 2
6,885 5,339 1,546
1,500 1,274 226
400 398 2
9,650 9,606 44
1,300 1,235 65
21,000 20,501 49g
500 154 346
250 81 169
1,410 606 804
275 205 70
2,650 2,650
7,350 7,000 350
4,700 4,512 188
3,500
Total culture/recreation
129,530
34,816
2,789
158,740
Total expenditures X3,240,532 X3,105,770
64
(34, 816)
711
S 134,762
SPECIAL REVENUE FUND
VILLAGE OF TEQUESTA, FLORIDA
Special Revenue Fund
Schedule of Revenues -Budget and Actual
For the Fiscal Year Ended September 30, 1991
Taxes
Franchise fees
Utility taxes
Total taxes
Licenses and permits
Professional and occupational
licenses
Total licenses and permits
Intergovernmental
State revenue sharing
Total intergovernmental
Total revenues
Variance -
Favorable
Budget Actual (Unfavorable)
$ 277,700
383.500
661.200
$ 290,006
404.331
694.337
$ 12,306
20,831
33.137
73.500
73.500
129.245
129.245
$ 863,945
65
761474
76,474
129, 216
129.216
$ 900,027
2.974
2.974
(29)
(29j
6 08
PROPRIETARY FUND
(ENTERPRISE FUND)
VILLAGE OF TEQUESTA, FLORIDA
Enterprise Fund
Schedule of Operating Expenses - Budget and Actual
For the Fiscal Year Ended September 30, 1991
Purchased services
Purchased water
Refuse and recycling service
Total purchased services
Personal services
Salaries
Overtime
F.I.C.A.
Retirement
Life and health insurance
Workers compensation
insurance
Employee recognition program
Employee assistance programs
Total personal services
Contractual services
Insurance
Personal services
Communication services
Rentals and leases
Computer program services
Legal
Engineering
Accounting and auditing
Other charges
Licenses and fees
Administrative management
Personnel training and travel
Budget
$ 517,425
270.225
787.650
295,880
8,000
28,700
46,155
47,460
13,460
700
1, 600
441,955
29,430
1,000
5,500
5,500
6,280
8,470
34,743
25,725
11,600
1,750
108,000
6,100
Actual
$ 465,670
251, 875
717.545
288,077
7,177
28,123
40,774
42,751
11,287
343
459
418,991
27,910
4,311
3,298
4,179
4,701
17,312
21,903
10,264
1,750
108,000
5,916
Variance
Favorable
cunravorante~
$ 51,755
18.350
70.105
7,803
823
577
5,381
4,709
2,173
357
1.141
22,964
Total contractual services
Supplies
Office supplies
Chemicals
Other operatin supplies
Books, publications and dues
Total supplies
Heat, light and power
Repairs and maintenance
Depreciation
Total operating expenses
244.098
7,175
21,000
11,775
2.000
41,950
91, 725
114,415
S1.721,793
66
1,520
1,000
1,189
2,202
2,101
3,769
17,431
3,822
1,336
209, 544
6,132
20, 502
12,977
1, 125
1,043
498
(1,202)
875
40,736
90,993
94,189
309,214
$1,881,212
1,214
732
201226
(309,214)
$ (159,419)
VILLAGE OF TEQUESTA, FLORIDA
Enterprise Fund
Comparative Summary of Operations
For the Fiscal Years Ended September 30, 1991 and 1990
Operating revenues
Water system
Refuse and recycling
Charges for services
Operating expenses
Purchased services
Personal services
Contractual services
Sup lies
Hea~ light and power
Repairs and maintenance
Depreciation
Capital outlay
Total operating expenses
Operating income
Nono erating revenues (expenses)
In~erest income
Interest expense and fiscal charges
Loss on disposal of equipment
Well abandonment
Gain on sale of land
Total nonoperatinq revenues
Income before operating transfer
Operating transfers (out)
Net income
1991 1990
$1,979,513 $1,963,238
259. 31
2.239.044 1.9631238
717,545
418,991
209,544
40,736
90,993
94,189
309,214
467,571
366,074
221,141
36,778
88,467
105,733
310,661
1,881.212
357.832
260,707 244,209
(107,566) (1
2
2
(46, 971) (
,
05
(207,283
91,500
197,670 (79,538)
555,502 279,297
j57.750) (55,000
$ 497.752 $ 224.297
67
VILLAGE OF TEQUESTA, FLORIDA
Enterprise Fund
Schedule of Restricted Accounts Under Revenue Bond Ordinance
For the Fiscal Year Ended September 30, 1991
Sinking
Account
Balance, October 1, 1990
Cash and investments $ 10,585
Unamortized discount on investments
Total 10,585
Increases
Transfers from unrestricted accounts 175,488
Investment earnings 3,246
Total 178,734
Decreases
Capital outlay
Transfers to other restricted accounts 184,236
Total 184,236
Balance, September 30, 1991
Cash and investments 5,083
Unamortized discount on investments
Total 5 Og
68
Bond Renewal and
Amortization Reserve Replacement
Account Account _ Account
$729,815 $323,264 $ 12,449
(27.482)
702,333 323,264 12.44
125,352 1,610 25,050
58,333 19,488
183,685 21,098 25,Q50
30,580
30,580
919,122 344,362 6 919
_(33.104) '
886 1 344 36 6 9 9
69
VILLAGE OF TEQUESTA, FLORIDA
Amortization Schedule
$1,525,000 Water Refunding Revenue Bonds - Series 1985
September 30, 1991
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, 1991, the outstanding bonds totaled
$1,035,000; the payment schedule follows:
Due Date
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
$ 50,000
50,000
55,000
55,000
130,000
135,000
140,000
150,000
150,000
120.000
$1,035.000
Interest
$ 44,503
42,502
40,503
38,234
35,965
30,440
24,702
18,578
12,015
5.340
~ 292,782
Total
$ 94,503
92,502
95,503
93,234
165,965
165,440
164,702
168,578
162,015
125,340
S1,327,782
70
FIDUCIARY FUNDS
VILLAGE OF TEQUESTA, FLORIDA
Combining Balance Sheet - Fiduciary Fund Types
September 30, 1991
Expendable
Trust Agency
Fund Fund Totals
Assets
Investments $ $110,921 $110,921
Due from other funds 1,575 1,575
Total assets 1 575 110 921 112 496
Liabilities and
Fund Balances
Liabilities
Deferred compensation
payable S 5110.921 S110.921
Total liabilities 110.921 110.921
Fund Balances
Reserved for law
enforcement
Total fund balances
Total liabilities and
fund balances
1.575 1.575
1,575 1.575
1 575 110 921 112 496
71
VILLAGE OF TEQUESTA, FLORIDA
Schedule of Changes in Assets and Liabilities -
Agency Fund
For Fiscal Year Ended September 30, 1991
Deferred Balance
Compensation October 1,
and 1990
Balance
September 30,
Additions Deductions _ 1991
Assets
investments 105 587
40 68 35 352 110 92
Liabilities
Deferred
compensation
payable 1 5 587
40 6 35 35 110 2
72
GENERAL FIXED ASSETS
VILLAGE OF TEQUESTA, FLORIDA
Schedule of General Fixed Assets by Source
September 30, 1991
General fixed assets
Land
Buildings
Improvements other than buildings
Equipment
Total general fixed assets
Investment in general fixed assets
General Fund revenue
Total investment in general fixed assets
$ 84,728
294,333
140,282
518,00¢
$1,037.349
~1, 037,~,~
X1,037.349
73
VILLAGE OF TEQUESTA, FLORIDA
Schedule of General Fixed Assets By Function
September 30, 1991
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
$ 352,144 $35,000 $214,410 $102,734
270,410 14,180 256,230
126,274 7,713 118,561
6,020 6,020
167.857 49.728 83,668 34,461
922,705 84,728
114.644
319,971 518,006
114.644
S1.037,349 84 728 434 615 518 006
74
V;II~AGE OF TD~'`A, ,
Schedule of Crianges in General Fixed Assets
By Fluxztion
September 30, 1991
Genera).
government
Public safety
TrarLSportation
Human services
Clxlture/
rE?AL~2at1Qi1
Prior to
allocation
by function
General cer~eral
Fixed Assets ~~- Fixed ~~
October 1, Departmental Ste' 30,
1990 itions Deletions Transfers _ 1991
$320,342 $ 29,449 $10,200 $ 12,553
$ 352,144
254,314 51,976 23,327 (12,553) 270 410
122,812 3,462 126,274
6,020 6,020
_132,857 _ 35,000 167,857
836,345 119,887 33,527 922,705
114.644
950 989 119 887
33 527 ~~s
114.644
1 037 34
75
ALd, FUNDS
VILLAGE OF TEQUESTA, FLORIDA
Schedule of Investments - All Funds
September 30, 1991
Enterprise Fund
Bond Amortization
Account
U ited States Treasury Obli,.gation
Unamortized Interest Maturity
Par Value Cost _ Discount _ Rate ate
$635,000 $595,688
$33,104 7.625 2/15/07
State Board of Adminis ra~ion
Interest
Amounts Rate
General Fund
Debt Service Fund
Capital Projects Fund
Enterprise Fund
Meter deposits account
Retained earnings account
Reserve account
Bond amortization account
Sinking fund account
Capital improvement account
$ 892,162 Various
118,861 Various
150,747 Various
142,800 Various
2,267,859 Various
298,509 Various
330 Various
457 Various
431,180 Various
76
VILLAGE OF TEQUESTA, FLORIDA
Schedule of Insurance
September 30, 1991
Employees Statutory Life
Group Life Insurance
Group Hospitalization
Comprehensive Automobile
Liability
Public Employees Blanket Bond
Public Official Bond
Workmen's Compensation
Multi-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 Coverage
65-26-41 $20,000
3-2215 1.5 times annual
salary
24883 Various
BA0014609-05
30157954
30158137
WC0137341-00
CPP0117219-04
POS131577
91-010-87
X00068591-00
$1,000,000
$100,000
$100,000
$500,000
$1,000,000
$1,000,000
$1,300,000
$1,000,000
ETB-102089 $75,000
77
VILLAGE OF TEQUESTA, FLORIDA
General Revenues by Source (Unaudited) (1)
Last Ten Fiscal Years
Fiscal Year Ended
September 30
Licenses
and
Taxes (2) Permits
1982 $ 991,734 $ 74,325
1983 1,014,020 95,964
1984 1,129,107 113,982
1985 1,777,305 102,894
19$6 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
1991 2,545,957 153,314
(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
THIS PAGE INTENTIONALLY LEFT BLANK
No Text
No Text
Charges
for Fines and
Intergovernmental Services Forfeits Miscellaneous(3) Total
$ 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
513,839 17,442 38,035 241,371 3,509,958
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 (2l Transportatior
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
1991 616,142 1,938,477 557,001
(1) Includes General, Special Revenue, Debt Service and Capital Project
Funds.
(2) Includes Fire/Emergency Contract with Palm Beach County year 1985.
(3) Refuse/Recycling Service reported in Enterprise Fund year 1991.
Source: Village of Tequesta financial records.
80
Culture
Physical Human and Debt
~nvironment(3) Services Recreation Service Total
$159,155 $11,069 $ 82,808 $89,088 $1,548,791
177,427 8,024 79,719 92,988 1,697,244
183,591 2,154 128,247 91,299 1,662,742
206,776 10,907 121,847 89,603 2,109,153
240,507 5,768 120,204 87,896 2,262,547
278,752 2,907 111,146 91,215 2,520,768
308,215 502 111,466 89,350 2,916,900
337,268 1,067 103,019 86,905 3,419,901
437,236 930 110,989 90,082 4,242,491
5,550 2,879 158,740 87,707 3,366,496
81
VILLAGE OF TEQUESTA, FLORIDA
Property Tax Levies and Collections (Unaudited) (1)
Last Ten Fiscal Years
' Percent c
Fiscal Year Total Current Tax Percent Outstanding Delinque~
Ended Tax Levy Collections of Levy Delinquent Taxes tc
September 30 (1) (1) Collected Taxes Tax Le
m
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
1991 1,864,093 1,850,505 99.3 13,588 .7
(1) Includes discounts taken by property taxpayers.
Source: Palm Beach County Tax Collector's office.
82
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VILLAGE OF TEQUESTA, FLORIDA
Taxable Value and Just Value of
Taxable Property (Unaudited)
Last Ten Fiscal Years
September 30
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
Real Property
Taxable
Value Just Value
$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
346,506,060
$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
424,334,994
Source: Palm Beach County Property Appraiser's office.
83
Personal Property Total Ratio
Taxable Just Taxable Just Taxable Value
Value Value Value Value To Just Value
$ 9,434,287
10,410,095
11,333,640
10,902,190
10,812,334
11,547,658
12,052,258
14,685,689
16,463,806
15,726,846
$ 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
20,588,283
$210,204,447
209, 8.04, 188
218,153,678
229,903,728
244,470,485
269,314,508
274,426,183
305,061,255
354,406,269
362,232,906
$247,774,531
254,693,308
274,164,029
287,464,396
308,932,060
336,718,284
342,502,112
382,244,611
436,612,303
444,923,277
85~
82$
80$
80$
79$
80$
80$
80$
81$
81$
84
VILLAGE OF TEQUESTA, FLORIDA
Property Tax Rates - All Direct and Overlapping Governments (Unaudite<
(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
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 5.0.562 8.4620 .9137 .5470
1990 6.1828 4.8904 9.1990 .3910 .5470
1991 5.4085 4.8314 9.2930 .3790 .5470
(1) 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
Florida
Jupiter Naviga-
Jupiter Fire Palm Beach tional Children's County
Inlet District Junior Inland Services Health Care
District No. 1 College District Council District Total
.1003 1.2422 .5000(1) 17.4104
.1866 1.1845 15.0728
.2290 1.4660 16.7790
,2290 (2) 17.2841
.2290 (2) 17.8526
.2115 (2) 18.6462
.1979 (2) .0670 .0923 20.4569
.1920 (2) .0395 .1537 21.1151
.1772 (2) _
.0370 .1929 1.2500 22.8673
.1434 (2) .0550 .2238 1.2500 22-.1311
86
VILLAGE OF TEQUESTA, FLORIDA
Ratio of Net General Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita (Unaudited)
Last Ten Fiscal Years
Fiscal Year
Ended
September 30
Taxable
Population* Value
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
1991 4,508 362,567,496
* 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
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
650,000 128,978 521,022 .14 115.58
88
VILLAGE OF TEQUESTA, FLORIDA
Legal Debt Margin (Unaudited)
September 30, 1991
The Village of Tequesta, Florida has no legal debt margin.
89
VILLAGE OF TEQUESTA, FLORIDA
Computation of Direct and Overlapping Debt (Unaudited)
September 30, 1991
Taxing Authority
Village of Tequesta
Palm Beach County
Palm Beach County
School Board
Total
Net Debt
_Outstandina
$ 521,022
392,840,000
284,375,000
Percentage
Applicable
to
Tequesta
100.00$
.70
.70
Amount
Applicable
to
Tequesta
$ 521,022
2,749,880
1,990,625
$5,261,527
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 Del
Total Service 1
Fiscal Year Total General Total
Ended Debt Expenditures General
September 30 Principal Interest Service (1) Exp enditure:
1982 $ 15,000 $73,910 $88,910 $1,548,791 5.7
1983 20,000 72,588 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
1991 30,000 57,707 87,707 3,366,496 2.6
(1) Includes General, Special Revenue, Debt Service and Capital
Projects Fund.
91
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VILLAGE OF TEQUESTA, FLORIDA
Revenue Bond Coverage
Water Bonds (Unaudited)
Last Ten Fiscal Years
Fiscal Year Net Revenue
Ended Gross Operating Available for
September 30 Revenues Expenses Debt Service
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
1991 2,240,220 1,629,337 610,883
(1) Represents net debt service costs per a securities contract
requiring the Village to purchase an aggregate of $980,000 par
amount of U.S. Treasury Bonds due February 15, 2007, bearing
interest at 7-5/8$, at an aggregate purchase price of
$928,324. The purchase price of the Treasury Bonds is added
to the gross debt service and the income from the Treasury
Bonds is subtracted from gross debt service to compute Bond
Service Requirements.
92
Debt Service Requirements Debt
Amortization Service
Principal Interest Account (1) Total Coverage
$ -0- $275,090 $ -0- $275,090 1.83
-0- 275,252 -0- 275,252 1.60
-0- 276,344 -0- 276,344 1.33
25,000 223,139 34,035 242,274 1.35
65,000 134,421 58,857 258,278 1.20
70,000 132,919 54,427 257,346 1.27
75,000 112,036 73,210 260,246 1.53
80,000 106,705 66,911 253,616 2.31
85,000 100,855 71,301 257,156 2.35
90,000 107,566 58,455 256,021 2.39
93
VILLAGE OF TEQUESTA, FLORIDA
Property, Value, Construction and Bank Deposits (Unaudited)
Last Eight Fiscal Years
Commercial Residential
Construction (1) Construction (1) Property Value (3)
Number Number
Fiscal of of Bank Real Persona]
e r Units Value Units Value Deposits f21 Property Propert
1984 3 $ 329,567 50 $4,366,966 $232,803,399 $206,820,038 $11,333,64
1985 9 4,692,681 33 2,106,652 224,302,732 219,001,538 10,902,19
1986 2 828,435 5 484,135 272,519,953 233,658,151 10,812,33
1987 1 116,250 27 2,717,154 269,494,041 257,766,850 11,547,65
1988 6 6,803,410 24 3,358,458 294,073,604 329,524,860 12,052,25
1989 6 1,615,526 18 2,694,552 289,305,649 366,488,883 15,755,72
1990 1 197,126 20 3,206,343 313,199,861 414,814,947 21,797,35
1991 1 1,882,888 4 962,089 257,956,427 424,334,994 20,588,28;
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, 1991
Percentage
1991 of
Assessed Assessed
Taxpayers Type of Business Valuation Valuation
County Line Plaza
(Tequesta Associates - (K-Mart)
Limited Partnership) Shopping Center $12,797,210 2.9$
Dorner Properties
(Bank of Palm Beach Undeveloped
& Trust Company) Real Estate 7,381,382 1.7
Lighthouse Plaza
(Lighthouse Plaza
Associates, Ltd.) Shopping Center 4,092,763 .9
Tequesta Shoppes (Publix)
Shopping Center 3,928,517 .9
Barnett Bank (First
National Bank of
Jupiter/Tequesta) Banking 3,106,908 .7
Tequesta Country Club Golf/Social Club 2,611,784 .6
Tequesta Fashion Mall
(Edwin J. Nelson) Shopping Center 2,336,067 .5
Tequesta Plaza
-(Fehlhaber Corporation) Shopping Center 2,100,000 .5
Tequesta Corporate
Center (Tequesta Corp. Professional
Center Partners) Office Building 1,030,000 .2
Shaw Properties Professional
Office Building 1,013,080 .2
$40,397.711 9.1$
~~
Source: Palm Beach County Property Appraiser's Office
95
VILLAGE OF TEQUESTA, FLORIDA
Miscellaneous Statistics (Unaudited)
September 30, 1991
ate of Incorporation: 1957
Fonas 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 -
2.705 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
Buildin Permits Issued: 432
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-X0,000
Municipal Employees: Full-time - 48
96
VILLAGE OF TEQUESTA, FLORIDA
Demographic Statistics (Unaudited)
Last Ten Fiscal Years
Education
Level in
Years of
Fiscal Population Per Capita Median Formal Unemployment
ea (1) Income (2) Age (2) Schooling (2Z Rate (3)
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
1991 4,508 9.7
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
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No Text
No Text
NOWLEN, HOLT & MINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
215 FIFTH STREET
SUITE 200
POST OFFICE BOX 347
WEST PALM BEACH, FLORIDA 33402.0347
TELEPHONE (407) 859.3060
FAX (407) 835.0628 MEMBERS
AMERICAN INSTITUTE OF
CERTIFIED PUBLIC ACCOUNTANTS
EVERETT B NOWLEN, CPA (1930•t 98x1 KATHLEEN A. MINER, CPA TERRY L. MORTON, JR., CPA FLORIDA MSTITUTE OF
EDWARD 1 MOLT. CPA KIM HATCHER BEAUMONT. CPA N. RONALD BENNETT. CPA CERTIFIED PUBLIC ACCOUNTANTS
WKUAM B MF1ER, CPA MARILYN ROBERTS. CPA J. MICHAEL STEVENS, CPA ~ ACCOUNTING FIRMS ASSOCIATED INC.
ROBERT W HENDRI%. JR.. CPA R GREGOFIY SMITH. CPA ROBIN A. KOCIELKO. CPA
JANET R. BARICEVICH, CPA ROBERT W. MELMREK;H. CPA
BELLE GLADE OffK:E
333 S.E 2rq STREET
POST OFFICE 80% 338
BELLE GLADE. FLORIDA 33x30.0338
TELEPHONE 1x07) 998~SBt2
INDEPENDENT AUDITOR' S REPORT ON INTERNAL CONTROL FAx (x07) 998-82x8
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, 1991 and have issued our report thereon dated
December 9, 1991.
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, 1991, 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:
~earegation 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 the management letter.
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.
~il~.,~~ ~~ ~.~1G+~w+- ~. ~.
December 9, 1991
100
NOWLEN, HOLT & MINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
2t5 FIFTH STREET
SUITE 200
POST OFFICE BOX 347
WEST PALM BEACH, FLORIDA 33402.0347
TELEPHONE (407) 659-3060
FAX (407)835.0628 MEMBERS
AMERICAN NSTITUTE OF
CERTIFIED PUBLIC ACCOUNTANTS
EVERETT B NOWLEN, CPA (1930-t 9811 KATHLEEN A. MNER, CPA TERRY 1. MORTON, JR., CPA FLORIDA NSTITUTE OF
EDWARD T h10LT, CPA KIM HATCHER BEAUMONT. CPA N. RONALD BENNETT. CPA CERTIFIED PUBLIC ACCOUNTANTS
WLLIAM B. MNER. CPA MARILYN ROBERTS. CPA J. MICHAEL STEVENS, CPA ACCOUNTNG FIRMS ASSOCIATED NC.
R08ERT W HENORIX, JR.. CPA R. GREGORY SMITH, CPA ROBIN A. KOCIELKO. CPA
JANET R. BARCEVICH, CPA ~ ROBERT W. HELMREICH. CPA
BELIE GLADE OFFK:E
333 S-E. 2n0 STREET
POST OFFICE BOX 338
BELLE GLADE. FLORIDA 33/300338
TELEPHONE (1071 996.581 2
INDEPENDENT AUDITOR' S REPORT ON COMPLIANCE WITH FAX (107) 998.8218
LAWS AND REGULATIONS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS 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, 1991, and have issued our report thereon dated
December 9, 1991.
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
This report is intended for the information of management and
Village Council. This restriction is not intended to limit the
distribution of this report, which is a matter of public record.
December 9, 1991
102
~2acu,2~-, ~tU- u rtit,~,,,. P. +~.,
VILLP,GE 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. The report is due March 31, 1992.
103
NOWLEN, HOLT & MINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
215 F~TH STREET
SUITE 200
POST OFFICE BOX 347
WEST PALM BEACH, FLORIDA 33402.0347
TELEPHONE (407) 858-3080
FAX (407) 835-0628
EVERETT B. NOWIFN, CPA (19301984) KATHLEEN A. MNER. CPA TERRY L. MORTON. JR., CPA
EDWARD T. MOLT. CPA KIM HATCHER BEAUMONT. CPA N. RONALD BENNETT, CPA
WLLIAM B. MNER, CPA MAR4YN ROBERTS, CPA J- MICHAEL STEVENS. CPA
ROBERT W. HENDRIX. JR.. CPA R. GREGORY SMITH. CPA ROBN A. KOCIELKO. CPA
JANET R. BARICEVICH, CPA ROBERT W. NEL.MREICH, CPA
The Honorable Mayor and Village Council
Village of Tequesta, Florida
MEMBERS
AMERICAN NSTITUTE OF
CERTFED PUBLIC ACCOUNTANTS
FIORIDA NSTTTUTE OF
CERTIFIED PUBLIC ACCOUNTANTS
ACCOUNTING FIRMS ASSOCIATED NC.
BELLE GLADE OFFICE
333 S.E. 2rW STREET
POST OFFICE BOX 338
BELLE GLADE. FLORIDA 33430.0338
TELEPHONE (407) 998.5812
FAX (407) 998.8248
We have audited the general purpose financial statements of the
Village of Tequesta, Florida for the year ended September 30, 1991
and have issued our report thereon dated December 9, 1991.
In planning and performing our audit of the general purpose
financial statements of the Village of Tequesta, Florida for the
year ended September 30, 1991, 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.
As a result of this examination, we would like to present some
recommendations for consideration by management. These suggestions
are based primarily on the work done during our audit engagement,
and we do not wish to imply that they cover every possible
weakness. Nevertheless, we do think that they deserve your careful
evaluation.
PRIOR YEAR COMMENTS WHICH CONTINDE TO APPLY
Sevrevation 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.
Due to the recent integration of the finance department
and certain water department personnel, management should
review the possibility of segregating duties in all
control cycles where there were previous limitations due
to a small staff.
All other recommendations from the prior year audit were
implemented.
104
CURRENT YEAR COMMENTS
Fixed Asset Depreciation Software
The depreciation software for Enterprise Fund fixed
assets depreciation did not properly roll forward
accumulated depreciation as of September 30, 1990. As a
result, manual computations were required to account for
all accumulated depreciation.
We recommend the software program be corrected or
replaced if necessary.
This report is intended for the information of the management and
members of the Village Council. This restriction is not intended
to limit the distribution of this report, which is a matter of
public record.
December 9, 1991
105
No Text