CAFR_FY Ending_09/30/1995q
Comprehensive Annual Financial Repo,rT
Village of Tequesta,, Florida
Fiscal Year Ended September 30, 1995
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
' VILLAGE OF TEQUESTA, FLORIDA
September 30, 1995
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Prepared by the Finance Department
VILLAGE OF TEQUESTA, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
September 30, 1995
TABLE OF CONTENTS
Page
Number
Introductory Section
Letter of Transmittal 1-12
Certificate of Achievement for Excellence in
Financial Reporting 13
Village of Tequesta Organization Chart 14
List of Principal Officials 15
Financial Section
Independent Auditor's Report l6- 17
General Purpose Financial Statements
Combined Balance Sheet--All Fund Types and
Account Groups 18- 21
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances--All Governmental
Fund Types and Expendable Trust Funds 22- 23
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances--Budget and Actual--
Governmental Fund Types 24- 26
Statement of Revenues, Expenses and Changes in
Retained Earnings--Proprietary Fund Type 27
Statement of Cash Flows--Proprietary Fund Type 28- 29
Notes to Financial Statements 30- 65
Supplemental Information
General Fund
Schedule of Revenues--Budget and Actual 66- 68
Schedule of Departmental Expenditures--
Budget and Actual 69- 77
Special Revenue Fund
Schedule of Revenues--Budget and Actual 78
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VILLAGE OF TEQUESTA, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
September 30, 1995
TABLE OF CONTENTS (Continued)
Page
Number
Financial Section (continued)
Capital Projects Funds
Combining Balance Sheet 79
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance 80
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance -Budget and Actual 81- 82
Proprietary Fund (Enterprise Fund)
Schedule of Operating Expenses--Budget and Actual 83
Comparative Summary of Operations--Fiscal Years
Ended September 30, 1995 and 1994 84
Schedule of Restricted Accounts Under Revenue
Bond Ordinance 85- 86
Amortization Schedule--Water Refunding Revenue
Bonds -Series 1985 87
Fiduciary Funds
Combining Balance Sheet 88
Statement of Changes in Assets and Liabilities --
Agency Fund 89
General Fixed Assets
Schedule of General Fixed Assets by Source 90
Schedule of General Fixed Assets by Function 91
Schedule of Changes in General Fixed Assets
By Function 92
Required Supplemental Information -Firefighters'
Retirement System 93- 95
Schedule of Insurance 96
VILLAGE OF TEQUESTA, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
September 30, 1995
TABLE OF CONTENTS (Continued)
Page
Number
Statistical Section
General Revenues by Source 97- 98
General Government Expenditures by Function 99-100
Property Tax Levies and Collections 101
Taxable Value and Just Value of Taxable Property 102-103
Property Tax Rates--All Direct and Overlapping
Governments 104-105
Ratio of Net General Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita 106-107
Legal Debt Margin 108
Computation of Direct and Overlapping Debt 109
Ratio of Annual Debt Service Expenditures for General
Bonded Debt to Total General Expenditures 110
Revenue Bond Coverage--Water Bonds 111-112
Property Value, Construction and Bank Deposits 113
Principal Taxpayers 114
Miscellaneous Statistics 115
Demographic Statistics 116
Other Reports
Independent Auditor's Report on Internal Control
Structure Based on an Audit of General Purpose or
Basic Financial Statements Performed in Accordance
with Government Auditing Starutards 117-118
Independent Auditor's Report on Compliance Based
on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards 119-120
Management Letter 121-123
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To the Citizens of the
' Village of Tequesta, Florida
March 11, 1996
The Comprehensive Annual Financial Report of the Village of Tequesta, Florida for the
fiscal year ended September 30, 1995, is hereby submitted. Responsibility for both the accuracy
of the data, and the completeness and fairness of the presentation, including all disclosures, rests
i with Tequesta. 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 Tequesta. All disclosures
necessary to enable the reader to gain an understanding of Tequesta'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,
' Tequesta'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 reports on internal control, compliance and the management letter.
This report includes all funds and account groups of Tequesta. Tequesta provides a full
range of services. These services include police protection; fire and emergency medical service;
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. Tequesta contracts with a privately owned sanitation company for refuse
and recycling collection service.
VILLAGE OF TEQUESTA
Post Office Box 3273 357 Tequesta Drive
Tequesta, Florida 33469-0273 (407) 575-6200
Fax: (407) 575-6203
Recycled Paper
ECONOMIC CONDITION AND OUTLOOK
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 county, and the economic condition and outlook of the government's
growth potential for the next decade is excellent.
For the past four year period, property values have decreased an average of 1.25 % per
year. In 1995, property values showed a slight increase of .3 % over the previous year. We are
hopeful, Village efforts to encourage development of abandoned commercial sites for quality
mixed-use new construction will help accelerate Tequesta property values.
Based on the historical data presented and current projections of property tax values, the
Village will closely monitor property values 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 level of services provided and the
associated tax burden of our citizens.
MAJOR INITIATIVES
During the preparation of the 1995 budget, the Village identified, declining property
values and its effect on the Village's ability to deliver the desired levels of service sought by
Tequesta citizens, as the major concerns of the municipality. It was determined that efforts
should be taken to help stimulate appreciation of property values and promote quality growth
within the Village, while addressing program enhancements in a planned and coordinated manner
in keeping with anticipated growth in the value of the tax base. The Village management
addressed such concerns by the following actions:
Code Enforcement. To enhance the appearance of properties
within the Village and increase property values, the Village
Council made code enforcement the full-time responsibility of a
new Division within the Police Department.
Annexation. Village management staff devoted considerable time
and effort to promote annexation of five contiguous areas into the
Village. A referendum election was held at the March municipal
election. The Village was not successful in its efforts; however,
much was learned during the campaign and future efforts could be
more favorable for the Village.
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Emergency Medical Services. The Village acquired a Certificate
of Need from Palm Beach County enabling Tequesta's Emergency
Medical Services to provide advanced life support services. Three
additional firefighter/paramedics were authorized by Council. This
additional staffing, along with existing personnel, .enabled the
Village to have two advanced life support units that utilize the
latest technology in cardiac care, including twelve lead EKG
monitors and advanced IV therapy. Thus, providing an enhanced
level of care to the citizens of the communities serviced by
Tequesta's Emergency Medical Service Department.
COPS Fast Program. The Village's application to the U.S.
Department of Justice for a COPS Fast Program grant, effective
October 1, 1995, was approved. This grant will share in the costs
of providing one additional police officer over a three year period,
which will enable the Village to implement a Community Oriented
Policing Services Program.
Tequesta Branch Library. The Village entered into an interlocal
agreement with Palm Beach County for partial funding, land
acquisition, design and construction of a branch library in
Tequesta. The library was substantially completed during this
fiscal period. The Village undertook this project to attract people
to its central business district with the hope that their presence
would be of benefit to the commercial enterprises in the central
business district.
' INFRASTRUCTURE MAINTENANCE AND ERPANSION
Maintenance and expansion of the community's general infrastructure (such as roads,
bridges, sidewalks, storm water drainage systems, streetscape beautification projects, expansion
of potable water treatment facilities and development/redevelopment of the Tequesta Town
Center) remain a concern of Tequesta. 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 in keeping with the priorities and needs of
Tequesta. Also, changes affecting budget projections may require changes to the capital projects
plan which will enable Tequesta to maintain adequate cash reserves and required fund balances.
' The 1995 Capital Improvement Fund expenditures totaled $811,214 for the following
improvements:
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Culture and Recreation Improvements
Palm Beach County Tequesta Branch Library
Engineering Services $ 17,824
Utility Services 34,748
General Construction 672,162
Total Library 724,734
Tequesta Park Irrigation 16,522
Tequesta Drive Pathway (Seabrook to Riverside) 858
Country Club Drive Pathway 11,079
Tequesta Park Phase II Engineering Services 6,683
Total Culture and Recreation 759.876
Transportation and Drainage Improvements
Dover Dutch (engineering services) 18,928
Tequesta Drive Streetscape 11,163
Tequesta Drive Widening Project (attorney fees) 163
Total Transportation and Drainage 30,254
General Government Improvements
Facilities Assessment (planning and architectural services) 19,080
Village Hall Landscape (design services) 2,004
Total General Government 21,084
Total Capital Improvement Fund Expenditures 811 214
The 1995 Bond Construction Fund expenditures totaled $389,163 for the following
improvements:
Country Club Drive Improvements
Emergency Services $ 12,628
Paving 7,721
Right of Way Stripping 11, 630
Landscaping Irrigation and Lighting 15,719
Total Country Club Drive 473698
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Teauesta Park Improvements
General Construction $330,688
Irrigation 10, 777
Total Teauesta Park 341,465
Total Bond Fund Expenditures 389 163
The 1995 Proprietary Fund expenditures totaled $602,614 for the following
improvements:
Improvements Other Than Buildings
Well #25 with Pipeline $319,980
Well #26 62,713
Well #27 73,034
Reverse Osmosis Plant Engineering Design 26, 814
Reverse Osmosis Effluent Disposal 6,000
Water Treatment Plant Rehabilitation Project 2,125
Water System Modeling 16,731
LePark Heritage Oaks, Water Line Loop 1,649
Distribution Loops 208
Centralized Garage Design 12,376
Total Improvements Other Than Buildings 521,630
Equipment and System Renewal and Replacement
Machinery and Equipment 34,519
Office Equipment 20,829
Vehicle Purchases 16,695
Meters, Valves and Hydrants 8 41
Total Equipment and System Renewal and Replacement 80,984
Total Proprietary Fund Expenditures 602 614
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FINANCIAL INFORMATION
The 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 the 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, Tequesta 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 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 at the individual fund level. The government also maintains
an encumbrance accounting system as one technique of accomplishing budgetary control.
Encumbered amounts lapse at year end. However, encumbrances generally are re-appropriated
as part of the following year's budget.
As demonstrated by the statements and schedules included in the financial section of this
report, Tequesta continues to meet its responsibility for sound financial management.
General Government Functions
Revenues
The following schedule presents a summary of General Fund, Special Revenue Fund,
Capital Project Funds, and Expendable Trust Fund revenues for the fiscal year ended
September 30, 1995 and the amount and percentage of increases and decreases in relation to
pnor year revenues.
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Percent
Amount of Total
Percent
Increase of
(Decrease) Increase
From 1994 encease .
' Taxes $2,985,573 62.59% $151,853 5.36%
Licenses and Permits 292,272 6.13 94,272 47.61
Intergovernmental 898,701 18.84 475,095 112.15
' Charges for Services 241,848 5.07 52,157 27.50
Fines and Forfeits 43,555 .91 (5,330) (10.90)
Interest Income 128,953 2.70 52,134 67.86
' Impact Fees 23,278 .49 23,278 100.00
Miscellaneous 15,041 .32 541 3.73
Intergovernmental Services 140.765 2.95 8,590 6.50
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Total Revenues 4 769 986
~~- 100.00 % 852 590 21.75 %
Taxes accounted for the major source of revenues and the most significant increase in
actual revenues received in 1995. Tax revenue consist of three district revenue sources; ad
' valorem property tax, franchise fees and utility services taxes. The ad valorem property tax rate
for 1995 was 6.1280 mills, an increase of 3.6% over the previous year millage rate of 5.9140
mills. Such increase was required to balance the General Fund budget as a result of property.
' tax values increasing a mere .3 % over previous year values. The increase in intergovernmental
revenues was the result of a grant of $459,063 from Palm Beach County Government for
construction of a new branch library m Tequesta. The increase in revenue for licenses and
' permits issued during the years resulted primarily from construction of a condominium on Beach
Road.
' Expenditures
The following schedule presents a summary of General Fund, Special Revenue Fund,
' Capital Project Funds, and Expendable Trust Fund expenditures for the fiscal year ended
September 30, 1995, and the amount and percentage of increases and decreases in relation to
prior year amounts:
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Percent
Increase of
Percent (Decrease) Increase '
Purpose Amount of Total From 1994 Decrease
General Government $ 770,264 14.19 % $ 95,210 14.10% ,
Public Safety 2,429,850 44.75 231,648 10.53
Physical Environment 4,179 .07 4,,179 100.00
Transportation 458,208 8.44 43,193 10.40 '
Human Services 472 .O1 (152) (24.35)
Culture/Recreation 154,508 2.85 31,805 25.92
Capital Outlay 1,410,410 25.98 497,997 54.58
Debt Service
Principal 90,354
Interest 111
061 1.66
2
05 (131,029)
27
968 (59.18)
65
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Total Expenditures 5 429 306 100.00% 800 819 17.30%
The most significant increase over previous year expenditures was for Public Safety
Services. Three paramedics were hired for Fire Rescue Services and one police officer for
Police Services. The increase to Capital Outlay expenditures was attributed to construction of
the Palm Beach County Tequesta Branch library. Construction costs for 1995 totaled $724,734.
Village funds expended were $265,671. '
Our analysis of the expenditure data presented indicates efforts must be taken by Tequesta '
to constrain the rising costs of providing government services without reducing the level of
services currently being provided. Alternative revenue sources must be explored such as:
expanding the property tax base by growth and development in the community; and possibly '
implementing user fees for appropriate government services.
General Fund Balance '
The undesignated balance of the General Fund was $838,488 on September 30, 1995,
which is 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.
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PROPRIETARY OPERATIONS
Water Ooeratio
Tequesta's proprietary water operations are reported in the Enterprise Fund. Tequesta's
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. Tequesta also purchases 1.5 million gallons of water per day,
contracted minimum, at a bulk rate, from the Town of Jupiter, Florida. The current agreement
extends through July 15, 2006.
Revenues and Increase Percent of
Water Consumption 1995 1994 (Decrease) Increase
1,000 Gallons Amount Amount From 1993 ecrease
Water Sales $2,738,893 $2,511,918 $226,975 9.03%
Total Water Consumption 1,014,700 950,825 63,875 6.72
Average and Daily Consumption 2.780 2.605 .175 6.72
Refuse/Recvcling Oaerations
Refuse and recycling collection operations are also accounted for in the Enterprise Fund.
The Enterprise Fund income and expense data for 1995 is shown in the following schedule.
Refuse/
Income and Expenses, Water Recycling Total
Operating Revenues $2,738,893 $244,550 $2,983,443
Operating Expenses 2,414,540 254,486 2,669 026
Operating Income (Loss) 324,353 (9,936) 314,417
Non-Operating Revenues (expenses) 174.263 174,263
Income (loss) before Operating transfer 498,616 (9,936) 488,680
Operating transfer out 1( 65.000) 165,0001
Net Income (L.oss) 333 616 (9~.93~6) 323 680
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Enterprise Fund Bonded Debt
On January 1, 1985, Tequesta 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, 1995, $270,000 of the '
bonds remained outstanding.
Fiduciary Operations '
Tequesta'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.
In 1993, Tequesta established a pension trust fund to account for the Firefighters' ,
Retirement System. Reference Note 8 (Notes to Financial Statements).
Debt Administration '
The Debt Service Fund was closed on September 30, 1994. Future debt service payments
will be reported in the Special Revenue Fund, for retirement of the Improvement Revenue '
Refunding Bonds Senes 1994, in the amount of $1,365,000, dated June 24, 1994. Reference
Note 17 (Notes to Financial Statements). '
Tequesta has a legal debt limit established by Section 6.02 of the Village Charter. The
aggregate indebtedness regardless of type (general obligation bonds, revenue bonds or special
assessment bonds) cannot exceed 10% of the assessed taxable value of real property located '
within Tequesta. As of September 30, 1995, taxable real property within Tequesta was assessed
at $328,167,741. ,
As of September 30, 1995, Tequesta's net bonded debt was $1,224,249, the ratio of net
bonded debt to taxable value was .35 %, and the net bonded debt per capita was $264.82.
Cash Management
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Tequesta 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 by '
the Finance Director and temporary idle cash is approved for investment by the Village Manager
upon recommendation from the Finance Director. The investment policy of Tequesta is to
maximize its investments in high quality risk-free securities authorized by State statutes, while '
maintaining a competitive yield on its portfolio.
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Tequesta'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 Tequesta's agent in a deferred compensation plan.
Investments with the State Board of Administration consist of obligations of the U.S. Treasury
and its agencies, money market securities of highest quality such as commercial paper, banker's
' acceptance, corporate notes and repurchase agreements. Because of the short maturities and high
quality, securities in this fund are considered practically risk free.
On September 30, 1995, investments held by Tequesta totaled $4,860,754, which is
detailed in Note 2, (Notes to Financial Statements). The average yield on short-term surplus
operating funds investments maturing during the year was 5.73 %.
Risk Management
' During 1995, Tequesta 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
r Community Right-to-Know Act. A detailed list of insurance in effect is contained in the
Schedule of Insurance section of this report.
' THER INF
O ORMATION
' 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 Tequesta's
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 Tequesta for its comprehensive annual
financial report for the fiscal year ended September 30, 1994. This was the thirteenth
consecutive year that Tequesta has received this prestigious award. In order to be awarded a
Certificate of Achievement, Tequesta published an easily readable and efficiently organized
' comprehensive annual financial report. This report satisfied both generally accepted accounting
principles and applicable legal requirements.
' A Certificate of Achievement is valid for a period of one year. We believe that our
current comprehensive annual financial report continues to meet the Certificate of Achievement
Program's requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
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Acknowled emen '
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. 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,
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Thomas G. Bradford Bill C. Ka cavelis '
Village Manager Director o Finance
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Village of Tequesta,
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 1994
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
~E OFfjC~,
OF 1FIE 9J• ~ ~~-~
IiED STA y
ANU ; H
GNAO" • ° President
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CHIC~60 ~%~~%~~~
Executive Director
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VILLAGE OF TEQUESTA
ORGA NIZA TION CHAR T
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VILLAGE OF TEQUESTA, FLORIDA
Council -Manager Form of Government
VILLAGE COUNCIL - 1994-1995
Ron T. Mackail Mayor
William E. Burckart Vice-Mayor
Joseph N. Capretta Councilmember
Cazl L. Hansen Councilmember
Elizabeth A. Schauer Councilmember
VILLAGE OFFICIALS
Thomas G. Bradford Village Manager
John C. Randolph Village Attorney
(Jones, Foster, Johnston &
Stubbs, P.A.)
Joann Manganiello
Bill C. Kascavelis
James M. Weinand
Carl R. Roderick
Scott D. Ladd
Gary Preston
Thomas C. Hall
Assistant to Village
Manager/Village Clerk
Director of Finance
Chief, Fire Rescue Department
Police Chief
Building Official
Director of Public Works
& Recreation
Water System Manager
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Nowlen, Holt & Miner, P.A.
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VILLAGE OF TEQUESTA, FLORIDA
FINANCIAL STATEMENTS WITH
INDEPENDENT AUDITOR'S REPORT THEREON
SEPTEMBER 30, 1995
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NOWLEN, HOLT & MINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS EVERETT B. NOWLEN lissaiseal, CPA
EDWARD T HOLT, CPA
WEST PALM BEACH OFFICE WILLIAM B. MINER, CPA
215 FIFTH STREET, SUITE 200 ROBERT W. HENDRIX, JR., CPA
' POST OFFICE BOX 347 JANET R. BARICEVICH, CPA
WEST PALM BEACH, FLORIDA 33402-0347 KATHLEEN A. MINER, CPA
TELEPHONE (561) 659-3060 R. GREGORY SMITH, CPA
FAX (561) 835-0628 ROBERT W. HELMREICH, CPA
TERRY L. MORTON, JR., CPA
t N. RONALD BENNETT, CPA
J. MICHAEL STEVENS, CPA
MARK B. ELHILOW, CPA
DANIELA' E. RUSSELL, CPA
' BELLE GLADE OFFICE
333 S. E. 2nd STREET
POST OFFICE BOX 338
BELLE GLADE, FLORIDA 33430-0338
TELEPHONE (561) 996-5612
' FAX (561) 996-6248
INDEPENDENT AUDITOR'S REPORT
The Honorable Mayor and Village Council
' Village of Tequesta
Tequesta, Flonda
We have audited the accompanying general purpose financial statements of the Village of
1 Tequesta, Florida, as of September 30, 1995, 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 respects, the financial position of the Village of Tequesta, Florida, as of September 30,
1995, 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.
In accordance with Government Auditin Standards, we have also issued a report dated
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December 20, 1995 on our consideration of the Village's internal control structure and a report
' dated December 20, 1995 on its compliance with laws and regulations.
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AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • ACCOUNTING FIRMS ASSOCIATED INC.
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We have also reviewed the accounting requirements of the bond ordinances associated with both '
the Improvement Revenue Refunding Bonds, Series 1994 and Water Refunding Revenue Bonds,
Series 1985, relating to the benefits and application of funds. In our opinion, based on our audit L
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. ,
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December 20, 1995
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GENERAL PURPOSE FINANCIAL STATEMENTS
VILLAGE OF TEQUESTA, FLORIDA
Combined Balance Sheet -All Fund Types and Account Groups
September 30, 1995
Governmental Fund Types
Special Capital
General Revenue Projects
Assets and other debits
Cash and cash equivalents $562,252 $125,568 $ 92,400
Investments 625,530 802,889
Accounts receivable (net of allowance
for uncollectibles) 10,278
Due from other funds 100,061 3,035 30,468
Due from other governments 20,208
Inventories of supplies 735
Unamortized debt issue costs
Restricted assets
Cash and cash equivalents
Investments
Fixed assets
Amount to be provided for retirement
of general long-term debt
Total assets and other debits 1.3~ 128 603 925 757
18
r
Proprietary Fiduciary
Fund Type Fund Types Account Groups
Trust General General Totals
and Fixed Long-Term (Memorandum
Enterprise Ag_enc,~! Assets Debt Onlx)
$ 178,911 $ 4,586 $ $ $~ 963,717
34,773 549,059 ~ 2,012,251
226,019 236,297
418,348 551,912
20,208
25,102 25,837
4,570 4,570
1,161,461 ~, 1,161,461
2,294,346 ~, 2,294,346
6,085,711 3,125,205 9,210,916
2067,993 2.067.993
$10,429,241 553 645 3 125 205 2 067 993 $18,549.508
(Continued)
19
VILLAGE OF TE~UESTA, FLORIDA
Combined Balance Sheet -All and Types and Account Groups
September 30, 1995
(Continued)
Liabilities, equity and other credits
Liabilities
Accounts payable
Accrued liabilities
Payable from restricted assets
Accounts payable
Deposits
Water refunding revenue bonds
Due to other funds
Due to other governments
Deferred revenue
Contracts payable
Deferred compensation payable
Current portion of:
Notes payable
Capitalized leases
Compensated absences
Obligations under capitalized leases
Notes payable
Improvement revenue bonds payable
Water refunding revenue bonds payable
Unamortized debt discount
Total liabilities
Equity and other credits
Investments in general fixed assets
Contributed capital
Retained earnings
Reserved for revenue bond debt service
and capital improvements
Unreserved
Fund balances
Reserved for:
Capital improvements
Inventory of supplies
Law enforcement and fire rescue
Employees' retirement, plan
Recreation and parks
Encumbrances
Unreserved
Designated for:
Compensated absences
Undesignated
Total equity and other credits
Total liabilities, equity and other credits
20
Governmental Fund Types
Special Capital
General Revenue Projects
$ 74,399
77,261
83,776
3,524
3,084
$ $ 13,490
361,110
42,852
37, 924
242,044
735
9,817
103,967
24,013
100,000
_ 838,488
1,077020
1 319 064
42,852 412,524
444,240
90,548
85,751
85,751
128 603
21 1,555)
513,233
925 757
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Proprietary Fiduciary
Fund T,~~e Fund TXpes Account Grou s
Trust General Gener Totals
and Fixed Long-Term (Memorandum
Ente rise Agency Assets Debt Only~_
$ 145,770 $ $ $ $ 233,659
16,676 93,937
44 018
X 44,018
211
539 211,539
150;000 150,000
107,026 551,912
3,524
45,936
29,723 67,647
326,427 326,427
3,564 3,564
62 7
6
60;
6 356,977 41
;
03
798 388,600 389,398
8,404 12,416 20,820
1,310,000 1,310,000
120,000 120,000
(2,984) (2,984)
903,034 326,427 2,067,993 3 994,874
3,125,205 3,125,205
3,529,831 3,529,831
3,050,250 3,050,250
2,946,126 2,946,126
444,730
2,736 12,553
224,482 224,482
103,967
114,561
100,000
902.684
9.526.207 227.218 3,.125,205 14.554.634
10,429.241 553 645 3 125 205 2 067 993 $18,549508
See notes to financial statements.
21
VILLAGE OF TE UESTA FLORIDA
Q ,
Combined Statement of Revenues, Expenditures, and
Changes in Fund Balances - ,
All Governmental Fund Types and Expendable Trust Funds
For the Fiscal Year -Ended September 30, 1995
General
Revenues
Taxes $2,692,880
Licenses and permits 212,197
Intergovernmental 439, 638
Charges for services
241,848 '
Fines and forfeits 42,105
Interest 79, 049
Impact fees 15,041
Miscellaneous
11,954 '
Intragovernmental services 140.765
Total revenues 3.875,477 '
Expenditures
Current
General government 770,264
Public safety 2,429,850
Physical environment 4,179
Transportation 458,208
Human services
472 '
Culture/recreation 154,508
Capital outlay
i 208,803
Debt serv
ce '
Principal retirement 35,354
Interest 25.481
Total expenditures 4,087,119 '
Excess of revenues over (under) expenditures (211,642)
Other financing sources (uses)
15
555 ,
Debt proceeds ,
Sales of surplus material 1,185
Operating transfers in 334,890 '
Operating transfers out (63,800)
Total other financing sources (uses) 287.830 '
Excess of revenues and other sources over
(under) expenditures and other uses 76,188
Fu
d b
l
O
b
1
1994 1
832
000 '
n
a
ances,
cto
er
, ,
,
Fund balances, September 30, 1995 1 077 020 '
1
1
1
1
Governmental Fund Tykes
Special Capital
Revenue Projects
$292,693 $
80,075
459,063
372,768
55,000
85,580
_ 140,580
232,188
24S 4,890)
24~ 4_,890)
(12,702)
98.453
85 751
49,904
11, 324
520.291
1,200, 377
1,200.377
(680,086)
138.800
138.800
(541,286)
1,054,519
513 233
Fiduciary
Fund Tvc
Expendable
Trust Fund
1, 450
1,450
1,230
1.230
220
220
2,516
2 736
Totals
(Memorandum
Only
$2,985,573
292,272
898, 701
241,848
43,555
128,953
15,041
23,278
140,765
4,769,986
770,264
2,429,850
4,179
458,208
472
154,508
1,410,410
90, 354
111,061
5,429,306
X659,320)
15,555
1,185
473,690
X308,690)
181,740
(477,580)
2,156,320
1 678 740
See notes to financial statements.
23
VILLAGE OF TEQUESTA, FLORIDA
Combined Statement of Revenues, Expenditures, and
Changges in Fund Balances -
Budget and Actual
Governmental Fund Types
For the Fiscal Year Ended September 30, 1995
General Fund
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeits
Interest
Impact fees
Miscellaneous
Intragovernmental services
Total revenues
Ex enditures
Current
General government
Public safety.
Physical environment
Transportation
Human services
Culture/recreation
Capital outlay
Debt service
Principal retirement
Interest
Total expenditures
Excess of revenues over (under) expenditures
Other financing sources (uses)
Debt proceeds
Sales of surplus materials
Operating transfers in
Operating transfers out
Total other financing sources (uses)
Excess of revenues and other sources over
(under) expenditures and other uses
Fund balances, October 1, 1994
Fund balances, September 30, 1995
v anance -
Favorable
Bud eg t Actual (Unfavorable)
$2,647,240 $2,692,880 $ 45,640
105,500 212,197 106,697
435,275 439,638 4,363
199,635 241,848 42,213
39,000 42,105 3,105
54,000 79,049 25,049
15,041 15,041
4,000 11,954 7,954
140.765 140.765
3.625.415 3.875,477 250,062
785,580 770,264 15,316
2,457,155 2,429,850 27,305
4,200 4,179 21
467,425 458,208 9,217
1,450 472 978
159,025 154,508 4,517
229,750 208,803 20,947
32,215 35,354 (3,139
24,445 25,481 1036
4,161,245 4.087,119 74.126
(535,830) (211,642) 324,188
15,555 15,555
2,600 1,185 (1,415)
334,890 334,890
(63,800) (63,800)
273,690 287,830 14,140
(262,140) 76,188 338 328
1,000.832
1 077 020
~i~
24
S ecial Revenue Fund
anance -
Favorable
Budget Actual ~iJnfavorable~
$ 295,085 $ 292,693 $ (2,392
90,620 80,075 (10,545
anital Proiects Fun
v anance -
Favorable
Budget Actual jLTnfavorable)
$ $ $
506,000 459,063 (46,937)
12,500 49,904 37,404
11,324 11,324
385.705 372,768 1( 2,937) 529,824 520,291 (9,533)
1,988,264 1,200,377 787,887
55,000 55,000
85,815 85.580 235 21,610 21,610
140,815 140.580 235 2,009,874 1,200.377 809.497
244,890 232,188 1( 2,72) X1,480,050) (680.086) 799.964
138,800 138,800
(244 , 890) (244, 890)
(244,890) (244,890) 138,800 138,800
$ (12,702) 12 702 (1,341,250) (541,286) 799 964
98,453 1.054,519
85 751 513 233
(Continued)
25
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, 1995
(Continued) ,
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeits
Interest
Impact fees
Miscellaneous
Intragovernmental services
Total revenues
Ex enditures
Current
General government
Public safety
Physical environment
Transportation
Human services
Culture/recreation
Capital outlay
Debt service
Totals (Memorandum Onlv)
ance -
Favorable
Budget Actual (Unfavorable)
$ 2,942,325 $2,985,573 $ 43,248
196 120 292,272 96,152
941;275 898,701 (42,574)
199,635 241,848 42,213
39,000 42,105 3,105
66,500 128,953 62,453
15,041 15,041
15,324 23,278 7,954
140,765 140,765
4,540,944 4,768,536 227,592
785,580 770,264 15,316
2,457,155 2,429,850 27,305
4,200 4,179 21
467,425 458,208 9,217
1,450 472 978
159,025 154,508 4,517
2,218,014 1,409,180 808,834
Principal retirement 87,215 90,354
Interest 131, 870 111, 061
Total expenditures 6,311,934 5,428,076
Excess of revenues over (under) expenditures 51,770,990) (659,540)
Other financing sources (uses)
Debt proceeds 15,555
Sales of surplus materials 2,600 1,185
Operating transfers in 473,690 473,690
Operating transfers out (308,690) (308,690)
Total other financing sources (uses) 167.700 181,740
Excess of revenues and other sources over
20.809)
883.858
1,111,450
15,555
(1,415)
14,140
(under) expenditures and other uses $(1.603,390) (477,800) 1 125 590
Fund balances, October 1, 1994 2,153, 804
Fund balances, September 30, 1995 1 676 004
See notes to financial statements.
~!
~~
LI
26
VILLAGE OF TEQUESTA, FLORIDA
Statement of Revenues, Expenses and
' Changes in Retained Earnings/Fund Balance
Proprietary Fund Type and Similar Trust Fund
For the Fiscal Year Ended September 30, 1995
'
Proprietary Fiduciary
Fund Type Fund Twe
Pension
' Enterprise Trust Fund
Operating revenues
' Charges for services -water
Charges for services -refuse and recycling $2,738,893
244
550 $
Contributions , 117,565
Interest income 29,810
Total operating revenues 2,983,443 147.375
Operating expenses
Purchased services -water 667,950
Purchased services -refuse and recycling 254,486
Personal services 605,878
Contractual services 379,276
Supplies 72,120
Heat, light and power 98,973
Repairs and maintenance 201,707
' Depreciation 388,636
Administration 7,162
Refunds 2.997
'
Total operating expenses 2,669,026 10,159
' Operating income 314,417 137,216
Nonoperating revenues (expenses)
Interest income 209,367
' Interest expense and fiscal charges (20,380)
Loss on disposal of equipment (4,724)
Aid to community organizations (10,000)
' T
l
i 174
263
ota
nonoperat
ng revenues (expenses) ,
Income before operating transfers 488,680 137,216
Operating transfers (out) (165,000)
' Net income 323,680 137,216
Retained earnings, October 1, 1994 SY672,696 87,266
' Retained earnings, September 30, 1995 5 996 376 224 482
' See notes to financial statements.
' 27
Totals
(Memorandum
OnIX)
$2,738,893
244,550
117,565
29.810
3,130,818
667,950
254,486
605,878
379,276
72,120
98,973
201,707
388,636
7,162
2.997
2,679,185
451,633
209,367
(20,380)
(4,724)
(10,000)
174.263
625,896
(165.000)
460,896
5.759,962
6 220 858
VILLAGE OF TEQUESTA, FLORIDA
Statement of Cash Flows -
Proprietary Fund Type
For the Fiscal Year Ended September 30, 1995
Proprietary
Fund Type
Enterprise
Cash flows from operating activities:
Net operating income $ 314,417
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation 388,636
Changes in assets and liabilities:
(Increase) decrease in:
Accounts receivable 14, 818
Due from other funds (418,348)
Inventories 5,312
Increase (decrease) in:
Accounts payable 91,797
Accrued liabilities 1,156
Deposits 10,787
Prepaid expenses 5,000
Compensated absences 14,077
Due to other funds (15,485)
Due to other governments ~)
Net cash provided by operating activities 412,149
Cash flows from noncapital financing activities:
Operating transfer to other fund (165,000)
Contribution 1( 0,000)
Net cash used for noncapital financing
activities 17( 5,000)
28
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Proprietary
Fund Type
Enterprise
Cash flows from capital and related financing
activities:
Capital contributions $ 232,200
Acquisition and construction of fixed assets (529,730)
Principal paid on revenue bonds and
equipment leases (300,275)
Proceeds from notes payables 14,995
Interest paid on revenue bonds (45,329)
Fiscal charges paid on revenue bonds (5,212)
Payments on construction contracts (115,390)
Net cash used for capital and related
financing activities (748,741)
Cash flows from investing activities:
Proceeds from redemption of investments 917,173
Interest received on investments 209,369
Net cash provided by investing activities 1,126,542
Net increase in cash and cash equivalents 614,950
Cash and cash equivalents, October 1, 1994 725,422
Cash and cash equivalents, September 30, 1995 1 340 372
Noncash, Investing, Capital and Financing Activities
Contribution of fixed assets from contractors $ 6,754
Construction contracts payable 29,723
Undepreciated cost of miscellaneous equipment scrapped 4,724
See notes to financial statements.
29
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1995
NOTE 1 - SUNIlVIARY OF SIGNIFICANT ACCOUNTING POLICIES
The Reporting Entitv
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 aCouncil-Manager form of govern-
ment. The Village's major operations include public safety (police, fire rescue), streets and
roads, culture and recreation, public improvements, planning and zoning, water service and
general and administrative.
In accordance with Statement 14 of the Government Accounting Standards Board, the underlying
concept of the governmental financial reporting entity is that governmental organizations are
responsible to elected governing officials; therefore, financial reporting should report the elected
officials' accountability for those organizations. Furthermore, the financial statements of the
reporting entity should allow users to distinguish between the primary governments and its
component units (if any) by communicating information about the component units and their
relationships with the. primary government. A component unit is a legally separate organization
for which the elected officials of the primary government are financially accountable.
Determining factors of financial accountability include appointment of a voting majority,
imposition. of will, financial benefit or burden on a primary government or fiscal dependency.
In addition, component units can be other organizations for which the nature and significance
of their relationship with a primary government are such that exclusion would cause the
reporting entity's financial statements to be misleading or incomplete.
Based upon application of these criteria, the Village of Tequesta has determined that except for
the firefighters' retirement system, 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.
30
LI
n
ii
1
J
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1995
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The Reporting Entity (Continued)
Firefighters' Retirement System
The Village's regular full-time employees who are sworn firefighters are eligible
to participate in the Firefighters' Retirement System (FRS). FRS functions for
the benefit of these employees and is governed by a five member board, of which
the Village Council appoints two. The Village and FRS participants are obligated
to fund all FRS costs based upon actuarial valuations, with the Village funding
the difference between member and other contributions and the actuarial cost.
Based on these factors, it has been concluded that the FRS is fiscally dependent
on the Village of Tequesta, which makes the FRS a component unit of the
Village. Since the FRS provides services exclusively for the benefit of the
Village, the FRS is reported as a blended component unit, specifically as the
Firefighters Pension Trust Fund.
Basis o Presentation -Fund Accounting
The government uses funds and account groups to report on its financial position and the results
of its operations. Fund accounting is designed to demonstrate legal compliance and to aid
financial management by segregating transactions related to certain government functions or
activities.
A fund is a separate accounting entity with aself-balancing set of accounts. An account group,
on the other hand, is a financial reporting device designed to provide accountability for certain
assets and liabilities that are not recorded in the funds because they do not directly affect net
expendable available financial resources.
Funds are classified into three categories: governmental, proprietary and fiduciary. Each
category, in turn, is divided into separate "fund types".
31
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1995
NOTE 1 - SLTMIVIARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Basis of Presentation -Fund Accounting (Continued)
The following are the fund categories, funds and account groups used by the Village:
Governmental Fund 7~_pes
Governmental funds are used to account for all or most of a government's general
activities, including the collection and disbursement of earmarked monies (special
revenue funds), and the acquisition or construction of general fixed assets (capital
projects funds). The general fund is used to account for all activities of the
general government not accounted for in some other fund.
The Special Revenue Fund accumulates certain revenues as required by the
Improvement Revenue Refunding Bonds, Series 1994. These revenues include
franchise fees and occupational licenses.
The Capital Projects Funds are 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).
The Village has established the following two capital projects funds:
Bond Construction Fund
Capital Improvement Fund
All capital projects funds were established to be used for capital expenditures
required by continued growth of the Village.
32
1
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
' September 30, 1995
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
' Basis of Presentation -Fund Accounting (Continued)
Proprietary Fund 7~pe
' 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,
t operations, maintenance, financing and related debt service and billing and
collection.
Because refuse and recycling fees are billed along with the water service charges
and the refuse and recycling services are subcontracted which results in minimal
' administrative costs to the Village, a separate enterprise fund is not considered
necessary.
' The proprietary fund is accounted for on a cost of services or "capital main-
tenance" 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.
' 33
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1995
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Basis of Presentation -Fund Accounting (Continued)
Proprietary Fund 7~pe (Continued)
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 exhaustible fixed assets is charged as expense against the opera-
tions. Accumulated depreciation is reported on the proprietary fund's balance
sheet. Depreciation has been provided over the estimated useful lives using the
straight-line method. The estimated useful lives aze as follows:
Buildings 40 yeazs
Improvements 20 - 25 years
Equipment 4 - 10 yeazs
Fiduciary Fund 7~pes
Pension Trust, Expendable Trust and Agency Funds
Fiduciary Funds account for assets held by the government in a trustee capacity
or as an agent on behalf of others. Trust funds account for assets- held by the
government under the terms of a formal trust agreement.
The Pension Trust Fund is accounted for in essentially the same manner as the
proprietary funds, using the same measurement focus and basis of accounting.
The Village has one pension trust fund, the Firefighters Pension Trust Fund to
account for its retirement system for firefighters.
The Expendable Trust Fund is accounted for in essentially the same manner as
the governmental fund types, using the same measurement focus and basis of
accounting. Expendable trust funds account for assets where both the principal
and interest may be spent.
34
~~
1
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1995
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Basis of Presentation -Fund Accounting (Continued)
Fiduciar~Fund Types (Continued)
The Village has one Expendable Trust Fund, the Special Law Enforcement Trust
Fund, to account 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 custodial in nature and does not present results of operations
or have a measurement focus. Agency funds are accounted for using the
modified accrual basis of accounting. This fund is used to account for assets that
the government holds for others in an agency capacity.
' The Village has one Agency Fund, the ICMA Retirement Fund, which consists
of custodial funds held on behalf of Village employees representing deferred
compensation.
' Account Groups
C
General Fixed Assets Account Group
The accounting and reporting treatment applied to the fixed assets associated with
a fund are determined by its measurement focus. All governmental funds are
accounted for on a spending or "financial flow" measurement focus. This means
that only current assets and current liabilities are generally included on their
balance sheets. Their reported fund 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.
' 35
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1995 '
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Basis of Presentation -Fund Accounting (Continued) t
Account Groups (Continued)
Fixed assets used in governmental fund type operations (general fixed assets) are
accounted for in the General Fixed Assets Account Group, rather than in govern-
mental 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.
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.
36
~
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
' September 30, 1995
' NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
' Basis o~'Accountin
The accounting and financial reporting treatment applied to a fund is determined by its
measurement focus. All governmental funds and expendable trust funds are accounted for using
a current financial resources measurement focus. With this measurement focus, only current
assets and current liabilities generally are included on the balance sheet. Operating statements
of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e.,
expenditures and other financing uses) in net current assets.
~` All proprietary funds and pension trust funds are accounted for on a flow of economic resources
measurement focus. With this measurement focus, all assets and all liabilities associated with
the operation of these funds are included on the balance sheet. Fund equity (i.e., net total
t assets) is segregated into contributed capital and retained earnings components. Proprietary
fund-type operating statements present increases (e.g., revenues) and decreases (e.g., expenses)
in net total assets.
The modified accrual basis of accounting is used by all governmental fund types, expendable
' trust funds and agency funds. Under the modified accrual basis of accounting, revenues. are
recognized when susceptible to accrual (i.e., when they become both measurable and available).
"Measurable" means the amount of the transaction can be determined and "available" means
1 collectible within the current period or soon enough thereafter to be used to pay liabilities of the
current period. 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. A 90 day availability period is used for revenue
recognition for all other governmental fund revenues. Expenditures are recorded when the
related fund liability is incurred. Principal and interest on general long-term debt are recorded
as fund liabilities when due or when amounts have been accumulated in the debt service fund
for payments to be made early in the following year.
1
' 37
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1995
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Basis of Accounting (Continued) '
Those revenues susceptible to accrual are franchise fees, taxes, .special assessments, licenses,
interest revenue, intergovernmental revenues, and charges for services. Sales taxes collected
and held by the state at year end on behalf of the Village also are recognized as revenue. Fines
and permit revenues are not susceptible to accrual because generally they are not measurable
until received in cash.
The government reports deferred revenue on its combined balance sheet. Deferred revenues
arise when a potential revenue does not meet both the "measurable" and "available" criteria for
recognition in the current period. Deferred revenues also arise when resources are received by
the government before it has a legal claim to them, as when grant monies are received prior to
the incurrence of qualifying expenditures. In subsequent periods, when both revenue recognition
criteria are met, or when the government has a legal claim to the resources,. the liability for
deferred revenue is removed from .the combined balance sheet and revenue is recognized.
The accrual basis of accountin is followed for the ro rie funds. Under this method of
g P P ~y
accounting, revenues are recognized. during- the accounting period in which they are earned and
become measurable and expenses are recognized in the accounting period in which they are '
incurred if measurable. Governmental Accounting Standards Board (GASB) Statement #20,
Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities that
Use Proprietary Funds, provides proprietary activities with a choice of authoritative guidance
issued after November 30, 1989. The Village of Tequesta has elected to follow GASB
pronouncements exclusively after that date.
Total Columns on Combined Statements
i
di
"
"
n
Memorandum Only
to
cate
The Total columns on the combined statements are captioned
that they are presented only to facilitate financial analysis. Data in these columns do not present
financial position, or results of operations 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.
~a
~
' VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
' September 30, 1995
' NOTE 1 - SUNIlVIARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
' Budgets and BudgetarX Accounting
Formal budgetary integration is employed as a management control device during the yeaz for
' the General Fund, Special Revenue Fund, Capital Project Funds and the Enterprise Fund. All
budgets aze legally enacted through passage of a resolution.
' Budgets for the General, Special Revenue, Capital Project Funds and the Enterprise Fund aze
adopted on a basis consistent with generally accepted accounting principles. For budgeting
purposes, current yeaz encumbrances are not treated as expenditures.
The Villa a follows these rocedures in establishin the bud a data reflected in the financial
g P g g ~'
' statements:
1. Prior to September 1, the Village Manager submits to the Village Council a
proposed .operating budget for the fiscal year commencing the following-
October 1. The operating budget includes proposed expenditures and the means
of financing them.
' 2. Public hearings are conducted to obtain taxpayer comments.
' 3. Prior to October 1, the budget is legally enacted through passage of a resolution.
Changes or amendments to the total budgeted fund expenditures must be approved by the Village
' Council. Management may make unlimited interfunctional transfers within a fund without
seeking council approval. 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 fund level and expenditures may not legally exceed
budgeted appropriations at that level.
During the year three supplemental appropriations were made.
1
' 39
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1995
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Budgets and Budgetary Accounting (Continued)
The Village has complied with the Florida requirement that budgets be in balance. The General
Fund, Special Revenue and Capital Projects Funds budgets reflected in the accompanying
financial statements aze 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 yeaz.
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.
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 the ICMA
Retirement Fund and the Firefighters Pension Trust Fund are reported at market value.
Inventories
Inventories aze valued at cost, which approximates market, on a first-in, first-out (FIFO)
method. Inventories in the General Fund consist of expendable supplies held for consumption.
The cost is recorded as an expenditure at the time individual inventory items are purchased.
Reported inventories aze equally offset by a fund balance reserve which indicates that they do
not constitute "available spendable resources" even though they aze a component of net current
assets. During the current year there were no material changes in inventory balances.
40
I~
~~I
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1995
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
' Amortization
The issue costs and debt discount on long-term debt are amortized over the life of the bonds
using the straight-line method.
Ad Valorem Taxes
Ad valorem taxes are assessed and liened 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.
InterFund Transactions
Following is a description of the basic types of interfund transactions 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.
1 Transactions to transfer revenue or contributions from the fund budgeted to
receive them to the fund budgeted to expend them. These transactions are
' recorded as operating transfers in and out.
Transactions to loan funds from the fund budgeted to loan them to the fund
budgeted to receive them. These transactions are recorded as advances to and
from.
' 41
VILLAGE OF TEQUESTA, FLORIDA '
Notes to Financial Statements
September 30, 1995 '
NOTE 1 - SiJ1VIlVIARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 1
Fund Equity ,
Reserves represent those portions of fund equity not appropriable for expenditure or legally
segregated for a specific future use. Designated fund balances represent tentative plans for '
future use of financial resources.
The portion of the fund balance reserved for recreation and parks represents the amount of funds
received for recreational improvements and park land which are not yet expended.
Compensated Absences i
Compensated absences are absences for which employees will be paid, such as vacation and sick
leave. A liability for compensated absences that are attributable to services already rendered and ,
that are not contingent on a specific event, that is outside the control of the government and its
employees, is accrued. as employees earn the rights to-the- benefits. Compensated absences -that '
relate to future services or that are contingent on a specific event that is outside the control of
the government and its employees are accounted for m the penod in which such services are
rendered or such events take place.
In the governmental and similar trust funds, compensated absences that are expected to be
liquidated with expendable available financial resources, aze reported as an expenditure and fund
liability, in the fund that will pay for them. The remainder of the compensated absences liability
is reported in the General Long-Term Debt Account Group.
In the proprietary funds and similar trust funds, compensated absences are recorded as an '
expense and liability of the fund that will pay for them.
Interest Capitalization
The Financial Accounting Standards Boazd issued Statements of Financial Accounting Standards '
(FASB) No. 34, requiring capitalization of interest costs for all assets that are constructed for
an enterprise's use. The amount of interest to be capitalized, is that portion of the interest
incurred during the asset's acquisition period, which theoretically could have been avoided if
expenditures for the asset had not been made.
i~
42 '
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1995
NOTE 1 - SUNIMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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 $1,571,021 and the bank balances
were $1,642,631. 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.
Investments
ii
1
Florida statutes authorize the Village to invest surplus funds in the 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, funds held by the Village's agent in a
deferred compensation plan, and funds held with the State Pension Trust Fund Pool.
' 43
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1995
NOTE 2 -CASH AND INVESTMENTS (Continued)
Investments (Continued)
Obligations of the United States government are guaranteed and held by a qualified public
depository. The Village is obligated by its Water Refunding Revenue Bond issue, Series 1985,
to purchase U.S. Treasury Obligations. The treasury bonds are recorded net of unamortized
discount of $937,623.
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.
Cateaorv
1
Obligations of United
States government
Investment in:
State investment pool
Deferred compensation
mutual fund
Mutual funds (money market)
State pension trust fund pool
937 623
Carrying
Amount
$ 937,623
2,819,915
326, 427
554,157
222632
4 860 754
Market
Value
$1,049,521
2,819,915
326,427
554,157
222,632
4 972 652
1
44
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1995
NOTE 2 -CASH AND INVESTMENTS (Continued)
Investments (Continued)
The following is a reconciliation of cash and cash equivalents and investments per the balance
sheet and deposits and investments for risk categorization purposes.
Cash and Cash
Equivalents/
Deposits Investments
Cash and cash equivalents $ 963,717 $
Investments 2,012,251
Restricted assets
Cash and cash equivalents 1,161,461
Investments 2,294,346
Balance sheet totals 2,125,178 4,306,597
Adjustments
Mutual funds (money market) (5545157) 554,157
Risk categorization totals 1 571 021 4 860 754
NOTE 3 -RESTRICTED ASSETS
Restricted assets as of September 30, 1995 consist of the following accounts:
Cash Investments Total
Meter Deposit Accounts $ 38,539 $ 173,000 $ 211,539
Capital Improvement
Accounts 52,195 869,181 921,376
Bond Accounts:
Sinking Account 1,783 1,783
Bond Amortization
Account 554,157 937,623 1,491,780
Reserve Account 2,102 312,759 314,861
Renewal and Replace-
ment Account 514.468 14 4 8
1 161 461 2 294 346 3 455 807
45
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1995
NOTE 4 -ACCOUNTS RECEIVABLE -ENTERPRISE FUND
Accounts receivable of $226,019 are stated net of a $2,000 allowance for doubtful accounts and
consist of billed revenues totaling $193,648 and unbilled revenues totaling $34,371.
NOTE 5 -COMPONENTS OF FIRED ASSETS
A summary of changes in general fixed assets follows:
Balance Balance
October 1, September 30,
1994 Additions Deletions 1995
Land $ 234,728 $162,925 $ $ 397,653
Buildings 294,333 294,333
Improvements other
than buildings 258,778 258,778
Equipment 1,475,832 179,220 42,420 1,612,632
Construction in
progress 561.809 561.809
2 263 671 903 954 42 420, 3 125 205
The components of fixed assets at September 30, 1995 are summarized as follows:
Enterprise
Fund
General
Fixed Assets
Account Grout/
Total
Land
Buildings
Improvements other than
buildings
Machinery and equipment
Construction in progress
Accumulated depreciation
Total
$ 83,335
391,201
9,400,141
376,856
210,605
10,462,138
4,376,427
6 085 711
46
$ 397, 653
294,333
258,778
1,612,632
561.809
3,125,205
33 1~?
$ 480,988
685,534
9,658,919
1,989,488
772,414
13,587,343
4,376,427
9 210 916
'
VILLAGE OF TE UESTA FLORIDA
Q
Notes to Financial Statements
' September 30, 1995
NOTE 5 -COMPONENTS OF FIXED ASSETS (Continued)
' Significant construction commitments as of September 30, 1995 are as follows:
Estimated
Cost Cost to Completion
Description to Date Complete Date
Enterprise Fund
' Well 26
We11 27 $ 62,713 $ 227,000
79,486 160,000 May 1996
March 1996
Reverse Osmosis 26,562 8,000,000 January 1999
' Centralized Garage 434,376 September 1996
Capital Improvement Fund
' Tequesta Library 561, 809 74, 243 January 1996
' NOTE 6 -CAPITALIZED INTEREST/INTEREST EXPENSE
' For the year ended September 30, 1995, the Village capitalized $43,280 of interest cost in the
Enterprise fund. The total interest expense incurred for the Enterprise fund prior to
capitalization for the year ended September 30, 1995 was $63,660.
NOTE 7 -DEFINED BENEFIT PENSION PLAN
1
All Village full-time employees, except fireman who are eligible to participate in the Firefighters
Retirement System, participate in the noncontributory Florida Retirement System, acost-sharing
multiple-employer public employee retirement system. The payroll for employees covered by
the System for the year ended September 30, 1995 was $1,722,742. The Village's total payroll
was $2,255,607.
' 47
VILLAGE OF TE UESTA FLORIDA '
Q
Notes to Financial Statements
September 30, 1995 '
NOTE 7 -DEFINED BENEFIT PENSION PLAN (Continued) '
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 (RC) 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 compen-
sation for each year of credited service, depending on the years served. Average final
compensation is the employee's average of the five highest years of credited service, depending ,
on the years served. 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, '
1995 was $363,567. The actual contribution made was $363,567 (General Fund $294,586,
Enterprise Fund $68,981). The contribution equaled 21..1 % of current covered. payroll. The '
Village is required by statute to contribute at rates as of September 30, 1995 of 24.54% of
covered payroll for senior management service class, 17.57% of covered payroll for regular
class and 27.49 % for special risk class. These rates included .66 % for the employer health ,
insurance subsidy contribution, which is the same for all risk classes. Because this is a
non-contributory plan, no employee contributions are required.
The "pension benefit obligation" is a standardized disclosure measure of the present value of ,
pension benefits, adjusted for the effects of projected salary increases and step-rate benefits,
estimated to be payable in the future as a result of employee service to date. The measure, '
which is the actuarial present value of credited projected benefits, is intended to help users assess
the System's funding status on agoing-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, 1995 (the latest available
information) for the System as a whole, determined through an actuarial valuation performed as ,
of July 1, 1995, was $47.3 billion. The System's net assets available for benefits on that date
(valued at market) were $41.6 billion, leaving an unfunded pension benefit obligation of
$5.7 billion. The Village's actuarially determined contribution requirement represents less than '
one percent of all contributions.
48 '
' VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1995
' NOTE 7 -DEFINED BENEFIT PENSION PLAN (Continued)
' The Village has no responsibility to the System other than to make periodic payments required
by state statutes. Ten-year historical trend information showing the System's progress in
accumulating sufficient assets to pay benefits when due is presented in the System's June 30,
' 1994 comprehensive annual financial report.
On July 27, 1995, the Village Council enacted Resolution 27-94/95 authorizing the Village to
' revoke its election to participate in the Florida Retirement System (the "FRS") for all employees
hired January 1, 1996 or thereafter, pursuant to Chapter 95-338, Florida Laws.
' As a result of the adoption of Resolution 27-94/95, all full-time and part-time employees hired
on or after January 1, 1996 may not participate in the FRS and the City has no obligation to the
FRS with respect to such employees. All employees hired on or after January 1,1996 must
participate in the City sponsored retirement plan in effect at the date of their employment.
' NOTE 8 -FIREFIGHTERS' PENSION TRUST FUND
' The Village. established. the Firefighters' Retirement System; asingle-employer defined. benefit
pension plan, in accordance with Florida Statutes, Chapter 175 on September 7, 1993. The plan..
is mandatory for all full-time firefighters and is included in the financial statements as a pension
' trust fund.
' PLAN DESCRIPTION AND PROVISIONS
The following description of the retirement plan is provided for general information purpose
' only. Plan participants should refer to the appropriate source documents for more complete
information on the plan.
1
The plan provides retirement benefits as well as death and disability benefits. All benefits vest
after ten years of credited service. The payroll for employees covered by the plan for the year
ended September 30, 1995 was $528,895, the Village's total payroll was $2,255,607. As of
September 30, 1995, there were 17 nonvested active employees in the plan.
' 49
VILLAGE OF TEQLTESTA, FLORIDA ,
Notes to Financial Statements
September 30, 1995 '
NOTE 8 - FIREFIGIiTERS' PENSION TRUST FUND (Continued) '
PLAN DESCRIPTION AND PROVISIONS (Continued) '
Any firefighter who completes ten or more years of credited service and attains age 55, or
completes 25 years of credited service and attains age 52 is eligible for normal retirement ,
benefits. The monthly amount of normal retirement income for a firefighter is equal to the
number of years of credited service multiplied by 3 % of his average final compensation. Early
retirement may be taken after a firefighter has attained the age of 50 and has ten years of '
credited service. In the event of early retirement, benefits are actuarially reduced to take into
account the firefighter's younger age and earlier commencement of retirement benefits. Such
reduction shall not exceed 5 % per year. Disability benefits can be received for total and ,
permanent disabilities as determined by the Board of Trustees. If the pension is granted, the
benefit amount shall be:
If the in'u or disease is service connected the firefi hter shall be entitled to the rester of a
J rY ~ g g ( )
or (b): ,
(a) A monthly pension equal to 42% of his average. compensation based upon
his final five years of service, or '
(b) An amount equal to the number of years of his credited service multiplied
by 3 % of his average monthly salary based upon his final five years of ,
service.
If the injury or disease is not service connected, the firefighter shall be entitled to the greater '
of (a) or (b):
(a) A monthly pension equal to 25% of his average compensation based upon ,
his final five years of service, or
(b) An amount equal to the number of years of his credited service multiplied
by 3 % of his average monthly salary based upon his final five years of
service.
50 '
' VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
' September 30, 1995
' NOTE 8 -FIREFIGHTERS' PENSION TRUST FUND (Continued)
PLAN DESCRIPTION AND PROVISIONS (Continued)
If the firefighter dies prior to retirement from the fire department, his beneficiary shall receive
the following benefit:
(a) Line-of-Duty-Death-Benefit is a pension to the spouse (or children) of 50%
' of Average Compensation for life.
(b) Non-Line-of--Duty-Death, the spouse of a member with ten years of credited
service will receive the actuarial equivalent of the accrued early or normal
retirement benefit.
' If the firefighter dies or terminates employment with less than ten years of credited service, he
is entitled to a refund of the money contributed.
' "Average final compensation" means one-twelfth of the average salary of the five best years of
the last ten years of credited service prior to termination, retirement or death of the firefighter.
' "Credited service" is a firefighter's period of employment as firefighter in the fire department
measured in years and parts of years.
' Firefighters are required to contribute 5 % of their compensation to the plan. The state makes
a contribution from the Fire Insurance Premium Tax. The Village is required to contribute the
remaining amount to fund the plan using the aggregate actuarial cost method as approved by the
plan's Board of Trustees which consist of five people; two selected by the plan members, two
appointed by the Village Council and one selected by the other four trustees.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PLAN ASSET MATTERS
' Basis of Accounting. The retirement system is reported on the accrual basis of accounting.
Employee, employer and state contributions are recognized as revenues in the period in which
' employee services are performed.
Method Used to Value Assets. The plan assets are reported at market value.
' S1
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1995
NOTE 8 -FIREFIGHTERS' PENSION TRUST FUND (Continued)
FUNDING STATUS AND PROGRESS
The amount shown below as 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 any step-rate benefits, estimated to be payable in the future as a result of employee
service to date. This measure is the actuarial present value of credited projected benefits and
is intended to: (i) help the Board of Trustees of the Retirement Systems and the Village assess
the systems funding status on agoing-concern basis; (ii) assess progress being made in
accumulating sufficient assets to pay benefits when due; and (iii) allow for comparisons among
public employee retirement plans. The measure is independent of the actuarial funding method
used to determine contributions in the systems. Additionally, the pension benefit obligation is
being compared with plan assets at cost while the required contribution calculation uses total
projected benefits and the actuarial value of plan assets. The pension benefit obligation is thus
independent of the actuarial funding method used to determine contributions to the plan,
discussed. in Contributions Required and Contributions- Made. ,
The pension benefit obligation was determined as part of an actuarial valuation of the plan as
of October 1, 1994. Significant actuarial assumptions used in determining the pension benefit
obligations include:
° The mortality rates are based on the 1984 Unisex Pension Table.
° The rate of return on investment of present and future assets was assumed to be 8.0
compounded annually.
° Future benefit payments were computed assuming early retirement occurs according
to the withdrawal table below:
20
30
40
50
60
Withdrawal
Rate
80
0
0
0
1
52 ,
t
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1995
NOTE 8 -FIREFIGHTERS' PENSION TRUST FUND (Continued)
FUNDING STATUS AND PROGRESS (Continued)
° Future contributions and benefit payments were computed assuming a 6.0% annual
salary increase until the assumed retirement age.
° Disability benefit payments were computed assuming 75% of service and 25% of
nonservice.
° Death benefit payments were computed assuming 20% of service and 80% of
nonservice.
° Valuation of assets is market for equities, bonds, cash and cash equivalents. All
valuations are in conformity with Florida Statute 112.
The pension benefit obligation as of October 1, 1994 is as follows:
Retirees and beneficiaries currently
receiving benefits and terminated
employees entitled to benefits but
not yet receiving them $
Current employees
Accumulated employee contributions
including allocated investment income 21,384
Employer-financed vested
Employer-financed nonvested 45.407
Total pension benefit obligation 66,791
Net assets available for benefits
(market value) 87,266
Assets in excess of pension benefit obligation 20 475
53
VILLAGE OF TEQUESTA, FLORIDA '
Notes to Financial Statements
September 30, 1995 '
NOTE 8 -FIREFIGHTERS' PENSION TRUST FUND (Continued) '
CONTRIBUTIONS REQUIRED AND CONTRIBUTIONS MADE
The total required contributions are determined using the Aggregate Actuarial Cost Method and
consist of the normal cost, the current year's cost for benefits yet to be funded. The employer's
contribution is calculated by taking the required contribution less the estimated employee and
state contributions. The following contributions were made for the year ended September 30,
1995 based on an actuarial valuation as of October 1, 1994. '
Plan Year Ended September 30, 1995
Actuarially Determined
Requirements Actual
% of % of '
Covered Covered
Contribution Payroll Contnburion Payroll
Employees $ 26,445 5.0 $ 26,445 5.0 t
Employer 59,765 11.3 76,161 14.4
State 17 453 3.3 14,959 2.8 '
103 663 117 565
The required contribution calculated consisted of $103,663 (19.60% of covered payroll) normal '
cost.
Significant actuarial assumptions used to compute actuarially determined contribution '
requirements are the same as those used to compute the pension benefit obligation.
TREND INFORMATION
Trend information gives an indication of the progress made in accumulating sufficient assets to
pay benefits when due. As the plan was started in fiscal year ending September 30, 1993 and
actuarial reports are not prepared every year, complete trend information is not yet available.
Ten-year trend information may be found on pages 93-95. Three-year trend information
follows.
54 ,
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1995
NOTE 8 - FIREFIGIiTERS' PENSION TRUST FUND (Continued)
TREND INFORMATION (Continued)
Fiscal
Year Ended
1993
Percentage of pension benefit
obligation funded by available
assets
115.9
Fiscal
Year Ended
1994
130.66
Fiscal
Year Ended
1995
(a)
Assets in excess of pension benefit
obligation as a percentage of
annual covered payroll 2.5 5.13 (a)
Village's- contributions to the pension
plan as a percentage of annual
covered payroll 17.5 11.8 14.4
(a) No actuarial report available.
Presenting the assets in excess of pension benefit obligation as a percentage of annual covered
payroll approximately adjust for the effects of inflation for analysis purposes.
NOTE 9 - DEFF_RRFn COMPENSATION PLAN
The Village offers its employees a deferred compensation plan created in accordance with
Internal Revenue Code Section 457. The plan, available to all Village employees, permits them
to defer a portion of their salary until future years. The deferred compensation is not available
to employees until termination, retirement, death, or unforeseeable emergency.
55
VILLAGE OF TEQUESTA, FLORIDA '
Notes to Financial Statements
September 30, 1995 '
NOTE 9 -DEFERRED COMPENSATION PLAN (Continued) '
All amounts of compensation deferred under the plan, all property and rights purchased with
those amounts, and all income attributable to those amounts, property, or rights are (until paid
or made available to the employee or other beneficiary) solely the property and rights of the
Village (without being restricted to the provisions of benefits under the plan), subject only to the '
claims of the Village's general creditors. Participants' rights under the plan are equal to those
of general creditors of the Village in an amount equal to the fair market value of the deferred
account for each participant.
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 mana ed b the lan's trustee under one of six investment o tions or a '
g Y P P
combination thereof. The funds are invested at the discretion of individual plan participants. '
NOTE 10 -COMPENSATED ANNUAL LEAVE AND SICK PAY '
As of September 30, 1995, the total liability for compensated absences was $417,603. The
noncurrent portion of compensated absence liability of the General Fund is recorded in the
General Long-Term Debt Group. For the fiscal year ended September 30, 1995, the long-term
amount was $356,977. The liability recorded by the Enterprise Fund was $60,626.
NOTE 11 -RISK 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 provi-
sion for losses is reflected in the financial statements. There were no settled claims which '
exceeded insurance coverage during the past three fiscal years.
56 '
' VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
' September 30, 1995
NOTE 11 -RISK MANAGEMENT (Continued)
The Village is insured under a retrospectively rated policy for worker's compensation coverage.
The plan is a trust fund comprised of local governmental entities. The premiums are based on
the risk class and remuneration of covered employees adjusted by an experience modification
' based on the claims history of the Village. At the end of the premium year the Village can
either receive a discount or pay additional premium based on its claims experience. The policy
for the current fiscal year has been finalized with no additional premium due. Should a deficit
t develop in the trust fund after excess insurance recoveries, the Village shall thereafter be
responsible for its individual costs.
1
NOTE 12 -LEASE CO S
During the fiscal year, the Village had the following capital lease agreements:
' General Fund Enterprise Fund
Fire Truck Computer system
Annual Payment: $56,658 Monthly payment: $692
10 year term 60 month term
Expires October, 2003 Expires October, 1996
' Principal amount outstanding at
9/30/95 - $388,602
Capitalized cost - $466,140
' (General Fixed Asset Account Group)
Capitalized costs and accumulated amortization of the enterprise fund leases are as follows:
Cost $81,349
Accumulated amortization 56, 856
'
24 493
' Amortization expense of $16,269 is included in depreciation expense. There are no contingent
rents in the above leases.
' The following is a schedule of the future minimum lease payments under these capital lease
arrangements and the present value of the net minimum lease payments at September 30, 1995:
1
57
VILLAGE OF TE UESTA FLORIDA
Q ,
Notes to Financial Statements
September 30, 1995 '
'
NOTE 12 -LEASE CO TS (Continued)
Fiscal Year General
Ending Long-Term Enterprise
September 30, Debt Fund
,
1996 $ 56,658 $ 8,299
1997 56,658 803
1998 56,658
1999 56,658
2000
Thereafter 56,658
649
226
'
,
Total minimum lease payments 509,939 9,102 '
Less: amount representing
interest 121,339 430 '
Present value of future
minimum lease payments 388 600 8 672.
NOTE 13 -LONGTERM AGREEMENT TO PURCFIASE 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 14 -LONGTERM LEASE AGREEMENT
On December 20, 1994, the Village entered into an interlocal agreement with Palm Beach
County. Per the agreement Palm Beach County is to provide for partial funding, land '
acquisition and design and construction of a branch library within Tequesta. Upon completion
of the project, the library will be leased to Palm Beach County for 50 years for an annual rent
of one dollar. In the event the lease is terminated by the Village before the end of 50 years, the '
Village must reimburse Palm Beach County a depreciated value using a useful life of 25 years
based on an initial value of $405,000 calculated on a straight-line basis.
58
' VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
' September 30, 1995
' NOTE 15 -CONTRACTED SERVICES -FIRE PROTECTION/EMERGENCY
MEDICAL SERVICE
' Effective October 1, 1993, the Village entered into an agreement with North County Ambulance
for North County Ambulance to provide emergency medical service for a fee. The Village also
entered into an interlocal agreement with Jupiter Inlet colony for the Village to provide fire
protection/emergency medical services for a fee. For the year ended September 30, 1995, fire
protection paid to North County was $43,421 and fire protection fees received from Jupiter Inlet
' Colony was $155,135. As of January 1, 1995, the Village has established an Emergency
Medical Service (EMS) program within the Fire Rescue Department. The Village has employed
three additional paramedic personnel to complete the required staffing needs. North County
Ambulance continues to provide transportation but not longer provides medical services.
' NOTE 16 -CONTRACTED SERVICES -REFUSE AND RECYCLING COLLECTION
' Effective October 1, 1989, the Village entered into a five year franchise agreement with Nichols
Sanitation, Inc. for curbside solid waste and recycling collection services. On October 14, 1993,
the Village amended the franchise agreement. The amendment extended the agreement for an
' additional five years commencing October 1, 1994. For consideration. of the extension the
collection rates were reduced. In addition, the Village assessed a 6% franchise fee for each
residential customer, effective October 1, 1994. Nichols Sanitation may also adjust the curbside
' and recycling rates beginning October 1, 1995 and each October 1, thereafter based upon the
change in the Consumer Price Index (CPI).
' S9
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1995
NOTE 17 -LONGTERM DEBT
General Long-Term Debt
Changes in general long-term debt of the Village for the year ended September 30, 1994 are
summarized as follows:
Capital Improvement
Compensated Lease Note Revenue
Absences Obligations Payable Bonds Total
General long-term
debt at October 1, 1994 $253,072 $420,814 $ $1,365,000 $2,038,886
Additions:
Issuance of new debt 15,555 15,555
Increase in accrual for
compensated absences 103,905 103,905
Deletions:
Repayments of debt (32,214) 53,139) X55,000) X90,353)
General long-term debt
at September 30, 1995 356 977 388 600 12 416 1 310 000 2 067 993
Revenue Bonds - 1994
This debt consists of Improvement Revenue Refunding Bonds Series 1994 in the amount of
$1,365,000 with an interest rate of 6.15%, dated June 24, 1994. Pursuant to the Bond
Resolution, 16-93/94, the Village is obligated to use Franchise Fees and Occupational Fees to
pay the principal and interest on the Bond. At September 30, 1995, $1,310,000 of this issue
were outstanding. Any remaining revenues after principal and interest may be used for any
lawful purpose.
60
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
' September 30, 1995
NOTE 17 -LONGTERM DEBT (Continued)
' Revenue Bonds - 1994 (Continued)
Annual requirements to amortize this debt are as follows:
Coupon
' October 1, Rate Princi~ Interest Payments
1996 6.15 % $ 60 000 $ 80 565 $ 140 565
' 1997 6.15 % 65,000
1998 6.15% 70,000 76, 875
72,878 141, 875
142,878
1999 6.15 % 75,000 68,573 143,573
' 2000 6.15 % 80,000
Th
f
0
0
0 63,960
878
318 143,960
878
278
1
erea
ter 96
,
0 , ,
,
' Totals 1 310 000 681 729 1 991 729
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.
' 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 consulting engineer. Finally, any revenues remaining may
be used for any lawful purpose.
r
1
' 61
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1995
NOTE 17 -LONGTERM DEBT (Continued)
Water Fund (Continued)
The Resolution requires the establishment of the following accounts:
Account Purpose
Revenue Account To collect the entire gross revenues derived from the system,
except investment earnings.
Operation and To pay fully accrued operating expenses.
Maintenance Account
Sinking Account To accumulate sufficient funds to meet annual debt service
requirements through transfers from the Revenue Account.
Bond Amortization Established within the Sinking Account to meet principal
Account payment on the debt.
Reserve Account To accumulate funds for payment of principal and interest only
if funds in the Sinking Account are insufficient.
Renewal and Replacement To accumulate funds for the purpose of funding the cost of
Account extensions, additions to, enlargements and replacement of capital
assets of the system and emergency repairs thereto.
The annual requirements to amortize the debt are as follows:
Fiscal Year Ending
September 30 Principal
1996 $150,000
1997 120.000
270 000
Interest Total
$12,015 $162,015
5.340 125,340
17 355 287 355
62
. ,
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
' September 30, 1995
' NOTE 17 -LONGTERM DEBT (Continued)
' Water Fund (Continued)
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.
' All the required Annual Bond Amortization Account payments to the Trustee of the 85 Series
Bonds have been made as of September 30, 1995.
' Debt issue expense and bond discount on the Water Refunding. Revenue Bonds,. Series 1985, are
being amortized over the life of the bonds.
On October 1, 1994 the Village entered into an installment purchase agreement to purchase a
copy machine for the Water Department. The Village financed $15,555 over a term of 48
months at an interest rate of 8%. As of September 30, 1995 the balance of note was $11,968.
Total Long-Term Debt
' The annual requirements to amortize all outstanding debt including interest payments of
$824,062 as of September 30, 1995 are as follows:
Fiscal Capital
Year Ending Compensated Lease Notes Water Improvement
September 30 Absences Obli atg ions Payable Revenue Revenue Total
' 1996 $ $64,957 $ 8,949 $ 162,015 $ 140,565 $ 376,486
1997 57,461 8,949 125,340 141,875 333,625
1998 56,658 8,949 142,878 208,485
' 1999 56,658 746 143,573 200,977
2000 56,658 143,960 200,618
Thereafter 226,649 1,278, 878 1,505,527
Various 356.977 356.977
356 977 519 041 27 593 287 355 1 991 729 3 182 695
' Annual maturities of long-term compensated absences cannot be reasonably determined.
' 63
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1995
NOTE 18 - 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, '
1995, $3,675,000 of bonds outstanding are considered defeased.
NOTE 19 - INTERFUND RECEIVABLES AND PAYABLES ,
Individual fund interfund receivables and payables at September 30, 1994 are as follows: '
Interfund Interfund
Fund Receivables Payables ,
General Fund
Special Revenue Fund $100, 661
3,035 $ 83, 776 ,
Capital Improvement Fund 30,468 361,110
Enterprise Fund 418.348 107,026 '
551 912 551 912
NOTE 20 - INTERFUND ADMINISTRATIVE FEE
During the year ended September 30, 1995, the Enterprise Fund remitted $140,765 to the '
General Fund for administrative management fees. This amount is reflected as intra-
governmental services revenue in the General Fund and as contractual services operating
'
expenses in the Enterprise Fund.
~.
' VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
' September 30, 1995
' NOTE 21 -CONTRIBUTED CAPITAL -ENTERPRISE FUND
The changes in contributed capital consists of the following:
Capital
' Developer Improvement
Contributions Charles Total
' Contributed capital
at October 1, 1994 $1,082,789 $2,208,088 $3,290,877
Plus: contributions 6,754 232,200 238.954
Contributed capital at
' September 30, 1995 1 089 543 2 440 288 3 529 831
' NOTE 22 -LITIGATION
' The Village is currently involved in a dispute with the Town of Jupiter regarding an increase in
water purchase rates. The Village of Tequesta has a contract to purchase water from the Town
of Jupiter until the year 2006 at an annual cost of approximately $667,000. The Town of Jupiter
' is disputing that the fees charged to Tequesta are $51,000 per month less than their cost and
therefore are contesting the contract. As of the audit date negotiations between both
municipalities and their lawyers are ongoing. The possible financial impact for Tequesta if
' Jupiter prevails will be a $600,000 per year increase in water purchase fees.
NOTE 23 -SUBSEQUENT EVENTS
On November 2, 1995, Federal Emergency Management Assistance (FEMA) notified the State
' of Florida that northern Palm Beach County, Florida was designated a disaster area due to the
October 1995 floods, and eligible for reimbursement for damages. The Village Council
authorized management to apply for FEMA assistance. The Village's application is requesting
' approximately $650,000 for the repair of stormwater drainage systems and road repairs. The
application has not been approved as of the audit date.
' 65
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Revenues -Budget and Actual
For the Fiscal Year Ended September 30, 1995
Taxes
Ad valorem taxes
Current ad valorem taxes
Delinquent ad valorem taxes
Total ad valorem
Public services taxes
Electric
Telephone
Gas
Water
Total public service taxes,
Local option gas tax
Total taxes
Licenses and permits
Building permits
Other licenses and permits
Total licenses and permits
_ Budget Actual
$2,007,780 $2,028,987
2,600 7,578
2,010380 2,036,565
320,625 325,773
67,500 72,310
13,500 15,069
78.750 83,995
480, 375 497, 147
156. 485 159, 168
2,647,240 2,692,880
95,000 192,566
_ 10,500 19,631
105,500 212.197
66
1
Variance - '
Favorable
~iTnfavorable)
$ 21,207
4.978
26.185 '
5,148 ,
4,810
1,569 ,
5.245
16,772 '
2,683
45,640 ,
97,566
9.131
106.697 '
(Continued) ,
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Revenues -Budget and Actual
For the Fiscal Year Ended September 30, 1995
(Continued)
Budget Actual
Intergovernmental
Cigarette tax $ 15,000 $ 13,135
State revenue sharing 129,200 129,216
Alcoholic beverage licenses 4,500 4,514
One-half cent sales tax 260,000 261,312
911 maintenance reimbursement 9,175 8,642
Countywide registrations 15,000 18,995
Other 1,200 2, 624
Recycling reimbursables 1,200 1,200
Total intergovernmental 435,275 439638
Charges for services
Zoning fees 15,000 16,300
Map sales 400 207
Certification, copying, record search 2,000 1,906
Fire plan reviews 2,500 3,293
Building inspection 6,000 24,925
Fire rescue services 155,135 155,135
Fire inspection/plan 12,500 9,095
Municipal police academy fees 2, 600 746
Extra duty -contracted services 3,500 30.241
Total charges for services 199.635 241, 848
Fines and forfeits
Court fines 38,000 41,205
Parking tickets X000 900
Total fines and forfeits 39.000 42.105
67
Variance -
Favorable
(iJnfavorable)
$ (1,865)
16
14
1,312
(533)
3,995
1,424
4,363
1,300
(193)
(94)
793
18,925
(3,405)
(1,854)
26.741
42.213
3,205
(100)
3.105
(Continued)
. 1
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Revenues -Budget and Actual '
For the Fiscal Year Ended September 30, 1995
(Continued)
- Variance -
Favorable '
Budget Actual (iJnfavorable)
Interest ,
Tax collector $ 4,000 $ 5,717 $ 1,717
Investments 50,000 73,332 23.332 '
Total interest 54,000 79,049 25.049
Impact fees ,
Law enforcement 4,034 4,034
Fire rescue 5,790 5,790
Parks and recreation
5,217
5,217 ,
Total impact fees 15,041 15.041 '
Miscellaneous
Other 4.000 11,954 7.954 t
Total miscellaneous 4,000 11,954 7,954
Intragovernmental services
Administrative management -water fund 140,765 140,765
'
Total intragovernmental services 140.765 140,765
Total revenues 3 625 415 3 875 477 250 062 '
1
68 ,
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures -Budget and Actual
For the Fiscal Year Ended September 30, 1995
Budg_et_ Actual
General government
Legislative
Travel and per diem $ 12,500 $ 12,498
Other charges 465 356
Books, publications and dues 4,375 4,374
Total legislative 17, 340 17, 228
Executive
Salaries 142,555 142,534
F.I.C.A. 10,935 10,931
Retirement 31,025 28,787
Life and health insurance 21,925 21,911
Worker's compensation insurance 800 800
Professional services 19,140 19,075
Contractual services 11,250 11,245
Deferred compensation plan 3,490 3,484
Travel and per diem 6,150 6,145
Office machines maintenance 875 854
Other charges 4,290 4,081
Office supplies 1, 250 1,109
Rentals and leases 1,525 1,512
Books, publications, dues 1,035 1,020
Total executive 256,245 253.488
69
Variance -
Favorable
(Unfavorable)
$ 2
109
1
112
21
4
2,238
14
65
6
5
21
209
141
13
15
2,757
(Continued)
VILLAG A FL RIDA
E OF TEQUEST O
General Fund
Schedule of Departmental Expenditures -Budget and Actual 1
For the Fiscal Year Ended September 30, 1995
(Continued)
Variance -
Favorable
Budget Actual (LTnfavorablel t
General government (continued) 1
Financial and administrative
'
Salaries $ 111,075 $ 111,075 $
F.I.C.A. 8,390 8,385 5
Retirement 20,745 19,248 1,497 ,
Life and health insurance 14,240 14,236 4
Worker's compensation insurance 685 675 10
Professional services 1,335 779 556
Accounting and auditing 20,500 20,500
Travel and per diem 1,100 1, 082 18
Other charges
1,400
934
466 '
Office supplies 6,400 6,398 2
Books, publications, dues 450 353 97
Office machines maintenance 4,600 4.510 90
Total financial and administrative 190,920 188,175 2}745 '
Legal counsel
Legal services 109,100 109,060 40 '
Total legal counsel _ 109,100 109.060 40
Planning and zoning
Professional services 40,400 40,399 1
Other charges 9,720 9.713 7
Total planning and zoning 50.120 50,112 8
(Continued)
70 ,
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures -Budget and Actual
For the Fiscal Year Ended September 30, 1995
(Continued)
General government (continued)
Other general government
Life and health insurance
Compensated absences
Other personal services
Professional services
Contractual services
Travel and per diem
Communication services
Transportation/postage
Utility services
Fire hydrant rental fees
Rentals and leases
Insurance/claims and judgments
Village Hall maintenance
Printing and binding
Promotional activities
Other charges
Office supplies
Books, publications, dues
Total other general government
Total general government
Variance -
Favorable
Budget Actual ~LTnfavorable)
$ 8,385 $ 8,385 $
4,070 4,070
16,840 16,773 67
4,580 4,541 39
20, 375 20, 374 1
275 275
5,000 4,989 11-
9,285 9,284 1
7,255 7,253 2
13,900 13,900
8,125 3,923 4,202
23,190 23,189 1
7,650 7,635 15
400 371 29
15,010 13,817 1,193
9,615 9,606 9
5,675 5,664 11
2.225 2,222 3
161.855 152,201 9.654
785,580 770,264 15,316
(Continued)
71
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures -Budget and Actual
For the Fiscal Year Ended September 30, 1995
(Continued)
Public safety
Police department
Salaries
Overtime
F.I.C.A.
Retirement
Life and health insurance
Worker's compensation insurance
Travel and per diem
Communication. services
Rentals and leases
Insurance
Repairs and maintenance
Printing and binding
Other charges
Personnel training
Office supplies
Operating supplies
Books, publications, dues
Budget Actual
$ 731,275 $ 730,332
36,435 36,215
70,095 69,106
196,950 184,144
108,925 108,642
50,025 49,560
3,175 2,700
6,485 6,400
150 106
24,000 23,935
25,445 24,721
1,150 982
31,600 30,494
8,845 8,424
2,745 2,628
35,750 34,823
1.670 1, 320
Total police department 1,334,720 1,314,532
72
Variance - '
Favorable
(Unfavorable '
$ 943
220
989 '
12,806
283
465 '
475
85
44
65
724
168
1,106
421 ,
117
927
350 '
20,188
(Continued)
1
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures -Budget and Actual
For the Fiscal Year Ended September 30, 1995
(Continued)
Variance -
Favorable
Budget Actual ~LTnfavorable)
Public safety (continued)
Protective inspections
Salaries
F.I.C.A.
Retirement
Life and health insurance
Worker's compensation insurance
Contractor services
Code enforcement
Travel and per diem
Communication services
Insurance
Repairs and maintenance
Printing and binding
Other charges
Uniforms and equipment
Office supplies
Operating supplies
Books, publications, dues
Total protective inspections
Emergency and disaster relief
Civil preparedness
Disaster relief
Total emergency and disaster relief
$ 104,050 $ 103,974 $ 76
8,265 8,102 163
20,025 18,837 1,188
12,960 12,838 122
3,000 3,000
8,650 7,954 696
8,725 8,669 56
3,400 3,335 65
2,000 1,878 122
870 831 39
890 757 133
200 95 105
1,200 854 346
250 250
1,500 1,436 64
1,525 1,095 430
600 426 174
178,110 174,331 3,779
250 250
3,000 2.500 500
3,250 2 5 750
(Continued)
73
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures -Budget and Actual
For the Fiscal Year Ended September 30, 1995
(Continued)
Budget Actual
Fire and rescue services
Salaries $ 533,135 $ 532,865
F.I. C. A. 40,470 40, 262
Retirement 76,250 76,161
Life and health insurance 130,130 128,732
EMS contractual services 43,425 43,421
Volunteer fire and rescue 12,975 12,959
Travel and per diem 3,025 2,972
Communication services 3,725 3,708
Utility services 1, 780 1, 775
Repairs and maintenance 22,095 21,923
Insurance 18,350 18,282
Printing 515 515
Other charges 14,285 14,267
Office supplies 1,035 985
Operating supplies 35,885 35,723
Books, publications, dues 3.995 3,937
Total fire and rescue services 941.075 938,487
Total public safety 2}457,155 2.429,850
Physical environment
Garbage disposal
Uniforms and miscellaneous supplies 4,200 4,179
Total physical environment 4,200 4,179
74
Variance - '
Favorable
(iJnfavorable) ^
$ 270
208
89
1,398
4
16
53
17 '
5
172
68
18 ,
50
162
58 '
2,588
27,305 ,
1
21 '
21
1
(Continued)
1
1
1
1
1
1
1
1
1
1
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VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures -Budget and Actual
For the Fiscal Year Ended September 30, 1995
(Continued)
Variance -
Favorable
Budget Actual ,(Unfavorable)
Transportation
Road and street facilities
Salaries
F.LC.A.
Retirement
Life and health insurance
Worker's compensation insurance
Engineering services
Other contractual services
Travel and per diem
Communication services
Rentals and leases
Utility services
Insurance
Repairs and maintenance
Other charges
Operating supplies
Road materials and supplies
Books, publications, dues
Total transportation
$ 142,000 $ 141,951 $ 49
10,550 10,504 46
26,525 24,610 1,915
28,125 28,102 23
8,650 8,647 3
70,500 70,427 73
53,400 48,588 4,812
2,650 2,613 37
900 878 22
1,100 1,059 41
49,925 49,827 98
9,850 9,828 22
52,100 50,966 1,134
1,000 964 36
5,800 4,950 850
4,050 4,024 26
300 270 30
467,425 458,208 9,217
(Continued)
75
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VILLAGE OF TE UESTA FLORID
Q , A
General Fund
Schedule of Departmental Expenditures -Budget and Actual
For the Fiscal Year Ended September 30, 1995
(Continued)
'
Variance -
Favorable
Budget Actual ~iJnfavorable) ,
Human services '
Health -mosquito control
'
Salaries $ 300 $ $ 300
Other charges
Operating supplies 100
550 37 63
550
'
Personnel training 500 435 65
Total human services 1,450 472 978 ,
Culture/Recreation ,
Parks and recreation
Salaries 63,490 63,271 219
F.LC.A. 4,560 4,480 80
Retirement 10,900 10,053 847
Life and health insurance 4,040 3,953 87
Worker's compensation insurance 3,040 3,000 40
Travel and per diem 1,500 1,478 22
Communication services 350 310 40
Utility services 11, 325 11, 311 14
Insurance 170 170 '
Repairs and maintenance 43,055 42,986 69
Other charges 300 300
Office supplies 100 82 18
r
(Continued)
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VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures -Budget and Actual
For the Fiscal Year Ended September 30, 1995
(Continued)
Variance -
Favorable
Budget Actual (Unfavorable)
Culture/Recreation (Continued)
Parks and recreation (continued)
Operating supplies $ 1, 750 $ 1, 679 $ 71
Books, publications, dues 150 105 45
Aid to community organizations 2,795 2,795
Aid to government organizations 11,500 11,500
Total culture/recreation 159,025 154,508 4.517
Capital Outlay
General government -executive 12,955 12,879 76
General government -other 1,390 24,160 (22,770)
Police 54,920 54,452 468
Protective inspections 2,000 1,257 743
Fire rescue 44,225 59,438 (15,213)
Transportation 73,180 50,537 22,643
Parks and recreation 41,080 6,080 35,000
229,750 208.803 20,947
Debt Service
Principal retirement 32,215 35,354 (3,139)
Interest 24.445 25,481 (1,036)
Total debt service 56.660 60, 835 4 175
Total expenditures 4 161 245 4 087 119 74 126
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VILLAGE OF TE UESTA FLORID
Q , A
Special Revenue Fund
Schedule of Revenues -Budget and Actual '
For the Fiscal Year Ended September 30, 1995
'
Variance
Budge
t
Actual Favorable
(iJnfavorable)
,
,
Taxes
1
Franchise fees $279,885 $278,893 $ (992)
Utility taxes 15.200 13,800 X1,400) ,
Total taxes 295.085 292,693 (2,392)
Licenses and permits '
Professional and occupational licenses 90,620 80.075 1( 0,545 '
Total licenses and permits 90,620 80,075 1( 0,545)
372 768 12 93 '
Total revenues 385 705
1
. 78 '
VILLAGE OF TEQUESTA, FLORIDA
Capital Projects Funds -
Combining Balance Sheet
September 30, 1995
Capital Bond
Improvement Construction
Fund Fund Total
Assets
Cash and cash equivalents $ 92,400 $ $ 92,400
Investments 358,649 444,240 802,889
Due from other funds 30,468 30,468
Total assets 481 517 444 240 925 757
Liabilities, equity and other credits
Accounts payable $ 13,490 $ $ 13,490
Due to other funds 361,110 361,110
Contracts payable 37,924 37,924
Total liabilities 412,524 412.524
Equity and other credits
Reserved for:
Capital improvements 444,240 444,240
Encumbrances 90,548 90,548
Unreserved
Undesignated 2( 1, 555) 2. l 1, 555
Total equity and other credits 68,993 444.240 513.233
Total liabilities, equity and
other credits 481 517 444 240 925 757
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VILLAGE OF TEQUESTA, FLORIDA
Combining Statement of Revenues,
Expenditures and Changes in Fund Balance
For the Fiscal Year Ended
September 30, 1995
Revenues
Intergovernmental grant
Interest
Miscellaneous
Total revenues
Expenditures
Capital outlay
Total expenditures
Excess of revenues over (under)
expenditures
Other financing sources (uses)
Transfers in
Total other financing sources
Excess of revenues and other financing
sources over (under) expenditures and
other financing uses
Fund balances at beginning of year
Fund balances at end of year
Capital Bond
Improvement Construction
Fund Fund Total
$ 459,063 $ $ 459,063
15,048 34,856 49,904
11, 324 11 324
485,435 34,856 520,291
811,214 389,163 1,200,377
8111214 389,163 1,200,377
32S 5,779) 35( 4,307) (680,086)
138,800 138,800
138,800 138,800
(186,979) (354,307) (541,286)
255,972 798,547 1,054,519
68 993 444 240 513 233
80
VILLAGE OF TEQUESTA
Capital Projects Fund
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance -Budget and Actual
For the Fiscal Year Ended
September 30, 1995
Revenues
Intergovernmental grant
Interest
Miscellaneous
Total revenues
Expenditures
Capital outlay
Interest
Total expenditures
Excess of revenues over (under)
expenditures
Other financing sources (uses)
Transfers in
Total other financing sources
Excess of revenues and other financing
sources over (under) expenditures and
other financing uses
Fund balances at beginning of year
Fund balances at end of year
Ca pital Improvement Fund
Budget Actual Variance '
$ 506,000 $ 459,063 $ (46,937) '
2,500 15,048 12,548
11, 324 11, 324 '
519.824 485,435 (34,389)
1,180,639 811,214 369,425
21,610 21,610 '
1,202,249 811,214 391,035
(682.425) 321 5,779) 356,646
138.800 138, 800
800 138
800
138. .
543 625 (186,979) 356 646
,
255.972
68 993 '
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Bond Construction Fund
Budget Actual Variance
$ $ $
10,000 34,856 24,856
10,000 34,856 24.856
807,625 389,163 418,462
807.625 389,163 418 4 2
(797, 625,) 35( 4, 307) 443.318
Totals
Budget Actual Variance
$ 506,000 $ 459,063 $ (46,937)
12,500 49,904 37,404
11,324 11.324
529,824 520.291 (9,533)
1,988,264 1,200,377 787,887
21 X610 21,610
2,009,874 1,200.377 Og 9,497
(1,480,050) 6~ 80,086) 799,964
138,800 138.800
138,800 138.800
797 625 (354,307) 443 318 $(1,341,250) (541,286) 799 964
798.547 1,054,519
444 240 513 233
82
' PROPRIETARY FUND
(ENTERPRISE FUND)
VILLAGE OF TEQUESTA, FLORIDA '
Enter nse Fund
Schedule of Operating Expenses -Budget and Actual
For the Fiscal Year Ended September 30, 1995 '
Budget Actual (Unfavorable)
Purchased services
Purchased water $ 667,950 $ 667,950 $
Refuse and recycling service 261,665 254,486 7.179
Total purchased services 929,615 922,436 7,179
Personal services
Salaries 384,885 398,646 (13,761)
Overtime
16,295
11,337
4,958 ,
F.I.C.A. 29,885 29,582 303
Retirement 74,450 68,981 5,469
Life and health insurance 77,300 77,110 190
Worker's compensation insurance 19,795 18,992 803
Employee recognition program 750 748 2
Employee assistance programs 1,000 482 518
Total personal services 604,360 605,878 (1,518) ,
Contractual services
Insurance 39,945 39,194 751
Personnel services
1,000
765
235 1
Communication services 6,500 6,223 277
Rentals and leases 4,330 4,299 31
Computer program services
L
l 4,405
80
625 2,600
601
80 1,805
24 '
ega , ,
Engineering 50,000 49, 860 140
Accounting and auditing 29,500 29,441 59
Other charges 12,000 11,463 537
Licenses and fees
8,125
8,106
19 '
Administrative management 140,765 140,765
Personnel training and travel 6,300 5.959 341
l
l
i 383
495 276
379 4
219
Tota
contractua
serv
ces , , ,
Supplies
Office supplies
8,200
7,952
248
Chemicals 39,500 39,241 259
Other operating
supplies 14,850 23,827 (8,977)
.
Books, publications and dues 1,200 1,100 100
Total supplies 63,750 72,120 (8,370)
Heat, light and power 99,300 98,973 327 '
Repairs and maintenance 184,900 201,707 1~ 6,807)
Depreciation 388,636 38~ 8.636)
Total operating expenses 2 265 420 2 669 026 403 606
83
Variance - ,
Favorable
VILLAGE OF TEQUESTA, FLORIDA
Enterprise Fund
Comparative Summary of Operations
For the Fiscal Years Ended September 30, 1995 and 1994
1995 1994
Operating revenues
Water system $2,738,893 $2,511,918
Refuse and recycling 244,550 252,617
Charges for services 2,983,443 2,764.535
Operating expenses
Purchased services 922,436 915,126
Personal services 605,878 546,734
Contractual services 379,276 268,973
Supplies 72,120 45,957
Heat, light and power 98,973 95,717
Repairs and maintenance 201,707 128,711
Depreciation 388,636 355,803
Total operating expenses 2,669.026 2,357,021
Operating income 314,417 407,514
Nonoperating revenues (expenses)
Interest income 209,367 178,189
Interest expense and fiscal charges (20,380) (66,578)
Loss on disposal of equipment (4,724)
Community aid donation (10,000) X10,000)
Total nonoperating revenues 174,263 101,611
Income before operating transfer 488,680 509,125
Operating transfers (out) (165,000) X316,351)
Net income 323 680 192 774
84
,
VILLAGE OF TEQUESTA, FLORIDA
Enterprise Fund
Schedule of Restricted Accounts Under Revenue Bond Ordinance
For the Fiscal Year Ended September 30, 1995
'
Sinking
Account
'
Balance, October 1, 1994
Cash and investments $ 11,093
Unamortized discount on investments
Total 11, 093 t
Increases ,
Transfers from restricted accounts
Transfers from unrestricted accounts
Investment earnings 323,045
925
Total 323,970 '
Decreases
Transfers to restricted accounts '
Capital outlay
Payments for debt service 333.280 '
Total 333,280
B
l
S
b
30
1995
a
ance,
eptem
er
,
Cash and investments '
Unamortized discount on investments 1,783
Total 1 783 '
1
85 '
Bond Renewal and
Amortization Reserve Replacement
Account Account Account
$1,398,370 $295,946 $16,285
(45, 942)
1.352,428 295,946 16,285
38,630
540,908
100,722 18.915
139,352 18 15 540 90
42,725
42,725
1,534,157 514,468
(42, 377)
1 491 780 314 861 514 468
86
VILLAGE OF TEQUESTA, FLORIDA
Amortization Schedule
$1,525,000 Water Refunding Revenue Bonds -Series 1985
September 30, 1995
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, 1995, the outstanding bonds totaled $270,000; the payment schedule follows:
Due Date Principal Interest Total
1996 April 1 $150,000 $ 12,015 $162,015
1996 October 1 120,000 5.340 125.340
Totals 270 000 17 355 287 355
87
VILLAGE OF TEQUESTA, FLORIDA
Combining Balance Sheet -Fiduciary Fund Types
September 30, 1995
Expendable Pension
Trust Trust Agency
Fund Fund Fund Totals
Assets
Cash and cash equivalents $ 2,736 $ 1,850 $ $ 4,586
Investments 222,632 326,427 549,059
Total assets 2 736 224 482 326 427 553 645
Liabilities and
Fund Balances
Liabilities
Deferred compensation.
payable ~ ~_ 326 427 326 427
Total liabilities 326.427 326.427
Fund Balances
Reserved for:
Law enforcement 2,736 2,736
Employees' retirement plan 224,482 224 482
Total fund balances 2,736 224.482 227s218
Total liabilities and
fund balances 2 736 224 482 326 427 553 645
88
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VILLAGE OF TEQUESTA, FLORIDA
Statement of Changes in Assets and Liabilities -
Agency Fund
For the Fiscal Year Ended September 30, 1995
Deferred Balance Balance
Compensation October 1, September 30,
Fund 1994 Additions Deductions 1995
Assets
Investments 237 364 91 436 2 373 326 427
Liabilities
Deferred compensation
payable 237 364 91 436 2 373 326 427
89
VILLAGE OF TEQUESTA, FLORIDA
Schedule of General Fixed Assets by Source
September 30, 1995
General fixed assets
Land $ 397,653
Buildings 294,333
Improvements other than buildings 258,778
Construction in progress 1, 612, 632
Equipment 561, 809
Total general fixed assets 3 125 205
Investment in general fixed assets
General Fund revenue $3,125,205
Total investment in general fixed assets 3 125 205
90
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
VILLAGE OF TEQUESTA, FLORIDA
Schedule of General Fixed Assets By Function
September 30, 1995
Buildings Construction
and in
Total Land Improvements ui ment Pro reg ss
$1,298,465 $347,925 $256,574 $ 132,157 $561,809
1,345,110 90,511 1,254,599
171,001 7,713 163,288
6,020 6,020
189,965 49,728 83,669 56,568
3,010,561 397,653 438,467 1,612,632 561,809
114,644
114,644
3 125 205 397 653 553 111 1 612 632 561 809
91
General government
Public safety
Transportation
Human services
Culture/recreation
Prior to allocation by
function
VILLAGE OF TEQUESTA, FLORIDA
Schedule of Changes in General Fixed Assets
By Function
For the Year Ended September 30, 1995
General
Fixed Assets
October 1,
1994 Additions Deletions
$ 564,435 $763,030 $27,321
1,251,227 106,619 14,415
143,460 28,225 684
6,020
183.885 6.080
2,149,027 903,954 42,420
114,644
2 263 671 903 954
92
General
Inter- Fixed Assets
Departmental September 30,
Transfers 1995
$(1,679) $1,298,465
1,679 1,345,110
171,001
6,020
189,965
3,010,561
42 420 ~
114,644
3 125 205
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OTHER SUPPLEMENTAL INFORMATION
VILLAGE OF TEQUESTA, FLORIDA '
Required Supplemental Information
Firefighters' Retirement System ,
Following is an analysis of funding progress for the Firefighters' Retirement System (FRS) of the '
Village of Tequesta, Florida.
Analysis of the dollar amounts of net assets available for benefits, pension benefit obligation, and '
assets in excess of pension benefit obligation in isolation can be misleading. Expressing the net
assets available for benefits as a percentage of the pension benefit obligation provides one
indication of the system's funding status on agoing-concern basis. Analysis of this percentage '
over time indicates whether the system is becoming financially stronger or weaker. Generally, the
greater this percentage, the stronger the retirement system. Trends in assets in excess of pension
benefit obligation and annual covered payroll are both affected by inflation. Expressing the assets ,
in excess of pension benefit obligation as a percentage of annual covered payroll approximately
adjusts for the effects of inflation and aids analysis of the system's progress made in accumulating
sufficient assets to pay benefits when due. Generally, the larger this percentage, the stronger the '
retirement system.
Also provided for the FRS is a listing of revenues by source and expenses by type for the ten '
years (where information is available).
93 '
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VILLAGE OF TEQUESTA, FLORIDA
Firefighters' Retirement System
Analysis of Funding Progress
(6)
Assets in
Excess of
Pension
(1) (2) (3) (4) (5) Benefit
Obligation
Net Assets in as a
Assets(a) Excess of Percentage
Available Pension Percentages Pension Annual of Covered
Fiscal for Benefit Funded Benefit Covered Payroll
Year Benefits Obli ag tion 1LZLL Obligation Payroll (4)/(5)
ro)
1993 $ 9,543 $ 8,236 115.9 $ 1,307 $ 52,129 2.5 %
1994 87,266 66,791 130.66 20,475 398,905 5.13 %
1995 224,482 (c) (c) (c) 528,895 (c)
(a) At market
(b) Since the Pension Trust Fund did not begin until July 1, 1993, information on the pension
benefit obligation is not available for fiscal years before 1993.
(c) October 1, 1994 is the latest available actuarial report.
94
VILLAGE OF TEQUESTA, FLORIDA ,
Firefighters' Retirement System
Revenues by Source and Expenses by Type '
1
Revenues by Source
Employer '
Contributions
as a
Employee Employer State Percentage '
Contri- Contri- Contri- Transfers of Covered
Fiscal Year butions butions butions Earnings In Total Payroll
'
1993 $ 426 $ 9,117 $ $ $ $ 9,543 17.5%
1994 19,805 46,950 8,801 7,565 83,121 11.8
1995 26,445 76,161 14,959 29,810 147,375 14.4 ,
'
T
Expenses by ype
Administrative
Fiscal Year
Benefits
Expenses Refunds
Total ,
1993 $ $ $ $
1994
4,918 480
5,398 '
1995 2,997 7,162 10,159
Contributions were made in accordance with actuarially determined contribution requirements.
t
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VILLAGE OF TEQUESTA, FLORIDA
Schedule of Insurance
September 30, 1995
Employees Statutory Life
Group Life Insurance
Group Hospitalization
Comprehensive Automobile
Liability
Public Employees Blanket Bond
Public Official Bond
Workmen's Compensation
Multi-peril
Umbrella Liability
Public Official's Liability
Police Professional Liability
EMT Professional Liability
Boiler and Machinery Liability
Unlawful and Intentional Death
(Police Department Personnel,
death resulting from an
intentional and illegal act)
Policy Number
ETB 102089
3-2215
24883
BA0014609-08
30157954-1
30158137
GRIT00459
CPP0117219-08
X00068591-03
POL443-86-40
95-010-88
EMS000126
BMI-AT9442007-03
ETB-102089
96
Coverage
$20,000
1.5 times annual
salary
Various
$1,000,000
$100,000
$100,000
$500,000
$1,000,000
$1,000,000
$1,000,000
$1,300,000
$1,000,000
$2,000,000
$75,000
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VILLAGE OF TEQUESTA, FLORIDA
General Revenues by Source (Unaudited) (1)
Last Ten Fiscal Years
Licenses
Fiscal Year Ended and
September 30 Taxes Permits
1986 $1,729,412 $104,014
1987 1,881,171 123,303
1988 2,143,933 170,834
1989 2,199,925 219,862
1990 2,485,814 190,743
1991 2,545,957 153,314
1992 2,645,035 222,465
1993 2,666,148 188,477
1994 2,833,720 198,000
1995 2,985,573 292,272
(1) Includes General, Special Revenue; Debt Service, Capital Projects, and Expendable Trust
Funds.
(2) Includes intragovernmental services and interest income.
Source: Village of Tequesta financial records.
97
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Charges
for Fines and
Intergovernmental Services Forefeits Miscellaneous(2) Total
$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
528,276 27,174 31,647 215,887 3,670,484
531,696 21,304 46,037 202,040 3,655,702
423,606 189,691 48,885 223,494 3,917,396
898,701 241,848 43,555 308,037 4,769,986
98
.
VILLAGE OF TEQUESTA, FLORIDA '
General Government Expenditures by Function (Unaudited) (1)
Last Ten Fiscal Years
Fiscal Year Ended General Public
Sep tember 30 Government Safe (2) Transportation
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
1992 743,343 2,056,825 651,665
1993 939,549 2,552,513 592,751
1994 678,217 2,662,075
546
227
1995 828
386 2 859,763
534
586
'
,
,
, ,
'
(1) i Pr ' Ex endable Trust Funds.
Includes General, Special Revenue, Debt Service, Cap tal o~ect and p
(2) Includes Fire/Emergency Contract with Palm Beach County beginning year 198 5 through year 1993
Tequesta began its own department beginning in year 1994.
(3) Refuse/Recycling Service reported in Enterprise Fund beginning year 1991.
S Vill
f T
i
l
d
f '
ource:
inanc
recor
s.
age o
equesta
a
1
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Culture
Physical Human and Debt
Environment(3) Services Recreation Service Total
$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
5,224 4,143 127,550 91,009 3,679,759
4,594 591 160,210 88,565 4,338,773
624 123,332 304,476 4,628,487
4,179 472 1,262,093 201,415 5,429,306
100
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VILLAGE OF TEQUESTA, FLORIDA
Property Tax Levies and Collections (Unaudited) (1)
Last Ten Fiscal Years
Fiscal Year Total Current Tax Percent Outstanding Delinquent
Ended Tax Levy Collections of Levy Delinquent Taxes to
September 30 _(1) _(~ Collected Taxes Tax Levv
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
1992 1,969,500 1,960,892 99.6 8,608 .4
1993 1,973,375 1,958,191 99.2 15,184 .8
1994 1,968,572 1,950,778 99.1 17,794 .9
1995 2,048,066 2,028,987 99.1 19,079 .9
(1) Includes discounts taken by property taxpayers.
Source: Palm Beach County Tax Collector's office.
101
VILLAGE OF TEQUESTA, FLORIDA
Taxable Value and Just Value of
Taxable Property (Unaudited)
Last Ten Fiscal Years
Real Prop erty
Taxable
September 30 Value Just Value
1986 $233,658,151 $297,370,052
1987 257,766,850 324,296,888
1988 262,373,925 329,524,860
1989 290,375,566 366,488,883
1990 337,942,463 414,814,947
1991 346,506,060 424,334,994
1992 341,068,104 418,897,038
1993 329,131,590 406,420,054
1994 326,699,785 406,281,260
1995 328,167,741 409,679,164
Source: Palm Beach County Property Appraiser's office.
102
Personal Property Total Ratio
Taxable Just Taxable Just Taxable Value
Value Value Value Value To Just Value
$10,812,334 $11,562,008 $244,470,485 $308,932,060 79 %
11,547,658 12,241,396 269,314,508 336,538,284 80%
12,052,258 12,977,252 274,426,183 342,502,.112 80 %
14,685,689 15,755,728 305,061,255.. 382,244,611 80
16,463,806 21,797,356 354,406,269 436,612,303 81%
15,726,846 20,588,283 362,232,906 444,923,277 81%
15,846,444 20,706,881 356,914,548 439,603,919 81%
15,683,045 16,779,738 344,814,635 423,199,792 81%
16,461,659 17,709,182 343,161,444 423,990,442 81%
16,070,906 18,042,404 344,238,467 427,721,568 80%
103
VILLAGE OF TEQUESTA, FLORIDA
Property Tax Rates - All Direct and Overlapping Governments (Unaudited)
(Per $1,000 of Assessed Value)
Last Ten Fiscal Years
South
Florida
County Water
General School County Management
September 30 Fund County Board Library District
1986 5.0867 4.5271 7.2280 .3428 .4390
1987 5.3126 4.6190 7.5950 .3951 .5130
1988 5.7510 4.7862 8.1580 .9075 .4970
1989 5.7510 5.0562 8.4620 .9137 .5470
1990 6.1828 4.8904 9.1990 .3910 .5470
1991 5.4085 4.8314 9.2930 .3790 .5470
1992 5.7515 4.6440 9.7850 .3939 .5470
1993 5.9000 4.6221 9.6030 .3885 .5470
1994 5.9140 4.5499 10.0630 .3915 .5970
1995 6.1280 4.5193 10.1850 .4437 .5970
(1) 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 provided fire rescue service to the Village at an annual
contract rate until Tequesta began its own Fire Rescue Service at October 1, 1993.
Source: Palm Beach County Property Appraiser's office.
104
t
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Florida
Jupiter Naviga-
Jupiter Fire tional Children's County
Inlet District Inland Services Health Care
District No. 1 District Council District Total
.2290 (1) 17.8526
.2115 (1) 18.6462
.1979 (1) .0670 .0923 20.4569
.1920 (1) .0395 .1537 21.1151
.1772 (1) .0370 .1929 1.2500 22.8673
.1434 (1) .0550 .2238 1.2500 22.1311
.1325
.1257 (1)
(1) .0530
.0520 .2215
.3039 1.4750
1.4750 23.0034
23.0172
.1257 .0510 .3297 1.4750 23.4968
' .1257 .0490 .3522 1.4500 23.8499
1
105
VILLAGE OF TEQUESTA, FLORIDA
Ratio of Net General Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita (Unaudited)
Last Ten Fiscal Years
Fiscal Year
Ended Taxable
September 30 Population* Value
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
1992 4,533 356,914,548
1993 4,551 344,814,635
1994 4,609 343,161,444
1995 4,623 344,238,467
* Source: Palm Beach County Planning Board, University of Florida Estimates,
Federal Census, and Village Building Department Records.
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Debt Ratio of Net
Gross Service Net Bonded Debt Net Bonded
Bonded Monies Bonded to Assessed Debt
Debt Available Debt Value Per Capita
$ 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
615,000 123,720 491,280 .14 108.37
580,000 120,530 459,470 .13 100.96
1,365,000 98,453 1,266,547 .36 274.80
1,310,000 85,751 1,224,249 .35 264.82
107
VILLAGE OF TEQUESTA, FLORIDA
Computation of Legal Debt Margin
September 30, 1995
Total assessed value
Legal debt margin:
Debt limitation - 10% of total
assessed value
Total debt outstanding
Less: amount available in
debt service fund
Total debt applicable to limitation
Legal debt margin
$1,310,000
85,751
108
344,238,467
$ 34,423,846
1,224,249
33,199,597
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VILLAGE OF TEQUESTA, FLORIDA
Computation of Direct and Overlapping Debt (Unaudited)
September 30, 1995
Taxing AuthoritX
Village of Tequesta
Palm Beach County
Palm Beach County
School Board
Total
Source: Above Government Entities
Percentage Amount
Applicable Applicable
Net Debt to to
Outstandine Tequesta Tequesta
$ 1,224,249 100.00% $1,224,249
498,180,000 .78 3,885,804
284,050,000 .78 2,215,590
783.454,249 7 25 643
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VILLAGE OF TEQUESTA, FLORIDA
Ratio of Annual Debt Service Expenditures for
General Bonded Debt to Total General Expenditures (Unaudited)
Last Ten Fiscal Years
Ratio of Debt
Total Service to
Fiscal Year Total General Total
Ended Debt Expenditures General
September 30 PrinciFal Interest Service (1) Expenditures
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
1992 35,000 56,009 91,009 3,679,759 2.5
1993 35,000 53,565 88,565 4,338,773 2.0
1994 221,383 83,093 304,476 4,628,487 6.6
1995 90,354 111,061 201,415 5,429,306 3.7
(1) Includes General, Special Revenue, Debt Service, Capital Projects and Expendable Trust Funds.
110
VILLAGE OF TEQUESTA, FLORIDA
Revenue Bond Coverage
Water Bonds (Unaudited)
Last Ten Fiscal Years
Fiscal Year
Ended Gross
September 30 Revenues
Net Revenue
Operating Available for '
Expenses Debt Service
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
1992 2,349,546 1,832,374 517,172
1993 2,566,614 2,051,891 514,723
1994 2,690,107 2,110,928 579,179
1995 2,948,260 2,414,540 533,720
(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.
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Debt Service Re quirements Debt
Amortization Service
Principal Interest Account (1) Total Coveraee
$ 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
100,000 102,415 55,842 258,257 2.00
110,000 78,737 65,254 253,991 2.03
265,000 66,405 (15,653) 315,752 1.83
290,000 43,280 (97,158) 236,123 2.26
112
VILLAGE OF TEQUESTA, FLORIDA ,
Property Value, Construction and Bank Deposits (Unaudited)
Last Ten Fiscal Years ,
Commercial Residential
Construction (1) Construction (1) Propertx Value (3) ,
Number Number
Fiscal of of Real Personal
Year Units Value nits Value Deposits (2) Property Property '
1986 2 $ 828,435 5 $ 484,135 $272,519,953 $233,658,151 $10,812,234
1987 1 116,250 27 2,717,154 269,494,041 257,766,850 11,547,658 ,
1988 6 6,803,410 24 3,358,458 294,073,604 329,524,860 12,052,258
1989 6 1,615,526 18 2,694,552 289,305,649 366,488,883 15,755,728
1990 1 197,126 20 3,206,343 313,199,861 414,814,947 21,797,356 '
1991 1 1,882,888 4 962,089 257,956,427 424,334,994 20,588,283
1992
1993 0
1 0
101,700 11
8 2,395,128
2,083,944 308,119,520
278,165,130 418,897,038
406,420,054 20,706,881
16,779,738
'
1994 0 0 25 3,134,633 293,551,944 406,281,260 17,709,182
1995 0 0 10 1,658,043 326,394,550 409,679,164 18,042,404 '
Source:
(1) Village of Tequesta Building Department. '
(2) Tequesta Commercial Banks and Savings and Loan Associations.
(3) Palm Beach County Property Appraiser's office.
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VILLAGE OF TEQUESTA, FLORIDA
Principal Taxpayers (Unaudited)
September 30, 1995
Taxpayers
County Line Plaza
(TAMWEST)
Tequesta Shoppes
(Sterling Tequesta/Trails)
Dorner Properties
(Bank of Palm Beach
& Trust Company)
Tequesta Shoppes, Ltd.
(c/o Capital Management
Assoc., Inc.
Barnett Bank (First National
Bank of Jupiter/Tequesta)
Tequesta Country Club
Lighthouse Plaza
(Garden Square Shoppes, Ltd.)
Tequesta Fashion Mall
(Edwin J. Nelson)
SI-IW, Ltd.
Tequesta Corporate Center
Feibel Recreation Center,
Inc. & Tequesta Corp.
Center Partners
Twe of Business
(K-Mart)
Shopping Center
(Publix)
Shopping Center
Undeveloped
Real Estate
(Waterway Village)
Lot A
Banking
Golf/Social Club
Shopping Center
Shopping Center
Real Estate
Professional
Office Building
Source: Palm Beach County Property Appraiser's Office
114
1995
Assessed
Valuation
$ 8,665,925
5,499,420
4,393,261
3,632,972
Percentage
of
Assessed
Valuation
2.52 %
1.60
1.28
1.05
2,946,860 .85
2,592,166 .75
2,246,318 .65
1,995,074 .58
1,615,701 .47
1.100,000
$34,687,697
.32
10.07
VILLAGE OF TEQUESTA, FLORIDA '
Miscellaneous Statistics (iTnaudited)
September 30, 1995 '
Date of Incorporation: 1957
,
Forms of Government: Council-Manager, 3 Councilmembers elected
even years, 2 Councilmembers elected odd years
,
Municipal Elections: Non-Partisan
Area: Approximately 2 square miles '
Miles of Streets: Approximately 44 lane miles
Fire Protection: Number of stations - 1 '
Number of certified firefighters - 17
Fire Rating - 4 '
Police Protection: Number of stations - 1
Number of certified officers - 17
Number of dispatchers - 4 '
Municipal Water Department: Number. of customers - 4,608
Average daily consumption - 2.78 million gallons ,
Miles of water mains -approximately 50 miles
Sanitary Sewage: Service provided by Loxahatchee River Environmental Control
District (ENCON) '
Storm Sewers: Adequate coverage '
Garbage Collection: Service franchised to Nichol's Sanitation
Frequency of service is bi-weekly '
Electric Service. Florida Power & Light Company
Telephone Service: Southern Bell Telephone & Telegraph Company
Building Permits Issued: 841
'
Recreation and Culture: Number of parks - 4, approximately 52 acres
Number of libraries - 1, branch of Palm Beach County System
Number of volumes - 18,500-20,000 '
Municipal Employees: Full-time - 66
115
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VILLAGE OF TEQUESTA, FLORIDA
Demographic Statistics (Unaudited)
Last Ten Fiscal Years
Education
Level in
Years of
Fiscal Population Per Capita Median Formal Unemployment
Year (1) Income (2) A e 2 Schooling (2~ Rate (3L
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
1992 4,533 8.8
1993 4,551 9.2
1994 4,609 8.4
1995 4,623 7.0
Sources:
(1) Palm Beach County Planning Boazd, 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.
116
THIS PAGE INTENTIONALLY LEFT BLANK
1
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NOWLEN, HOLT & MINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS EVERETT B. NOWLEN lieao-ieaal, CPA
EDWARD T HOLT, CPA
WEST PALM BEACH OFFICE WILLIAM B. MINER, CPA
215 FIFTH STREET, SUITE 200 ROBERT W. HENDRIX, JR., CPA
POST OFFICE BOX 347 JANET R. BARICEVICH, CPA
WEST PALM BEACH, FLORIDA 33402-0347 KATHLEEN A. MINER, CPA
TELEPHONE (561) 659-3060 R. GREGORY SMITH, CPA
FAX (561) 835-0628 ROBERT W. HELMREICH, CPA
TERRY L. MORTON, JR., CPA
N. RONALD BENNETT, CPA
J. MICHAEL STEVENS, CPA
MARK B. ELHILOW, CPA
DANIELA' E. RUSSELL, CPA
BELLE GLADE OFFICE
333 S. E. 2nd STREET
~ 1~7 7~, POST OFFICE BOX 338
INDEPENDENT AUDIT'OR'S REPORT ON INTEi~1V AL CONTl~~GLADE, FLORIDA 33430-0338
TELEPHONE (561) 996-5612
STRUCTURE BASED ON AN AUDIT OF GENERAL PURPOSE OR FAX (561) 996-6248
BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT A UDITING 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, 1995 and have issued our report thereon dated
December 20, 1995.
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.
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 safe-
guarded 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.
In planning and performing our audit of the general purpose financial statements of the Village
of Tequesta, Florida for the year ended September 30, 1995, we obtained an understanding of
the internal control structure. With respect to the internal control structure, 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 in order to determine our auditing procedures
for the purpose of expressing our opinion on the general purpose financial statements and not
to provide an opinion on the internal control structure. Accordingly, we do not express such
an opinion.
117
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • ACCOUNTING FIRMS ASSOCIATED INC.
We noted certain matters involving the internal control structure and its operation that we
consider to be reportable conditions 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.
Se~gation of Duties
There is inadequate separation of duties in some of 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.
A material weakness is a reportable condition in which the design or operation of one or more
of the 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 general purpose
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. However, we believe none of the reportable conditions described above is a
material weakrness.
Our recommendations regarding the above condition has been reported to the management of
the Village of Tequesta, Florida and is contained in the accompanying Management Letter.
This report is intended for the information of the audit committee, management, and Village
Council. However, this report is a matter of public record and its distribution is not limited.
December 20, 1995
~rv.,0.~,,!l~G1 r /12~,~,. R,l.
118
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NOWLEN, HOLT & MINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS EVERETT B. NOWLEN hsso-iseal, CPA
EDWARD T HOLT, CPA
WEST PALM BEACH OFFICE WILLIAM B. MINER, CPA
215 FIFTH STREET, SUITE 200 ROBERT W. HENDRIX, JR., CPA
POST OFFICE BOX 347 JANET R. BARICEVICH, CPA
WEST PALM BEACH, FLORIDA 33402-0347 KATHLEEN A. MINER, CPA
TELEPHONE (561) 659-3060 R. GREGORY SMITH, CPA
FAX (561) 835-0628 ROBERT W. HELMREICH, CPA
TERRY L. MORTON, JR., CPA
N. RONALD BENNETT. CPA
J. MICHAEL STEVENS, CPA
MARK B. ELHILOW, CPA
DANIELA' E. RUSSELL, CPA
BELLE GLADE OFFICE
333 S. E. 2nd STREET
POST OFFICE BOX 338
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCEBELLEgLADE, FLORIDA 33430-0338
TELEPHONE (561) 996-5612
BASED ON AN AUDIT OF FINANCIAL FAX (561) 996-6248
STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT A UDITING 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, 1995, and have issued our report thereon dated
' December 20, 1995.
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 aze free of material misstatement.
i~
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. Accordingly, we do not express
such an opinion.
The results of our tests disclosed no instances of noncompliance that we have reported under
Government Auditing Standards.
119
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS •ACCOUNTING FIRMS ASSOCIATED INC.
1
r
This report is intended for the information of management and Village Council. However, this '
report is a matter of public record and its distribution is not limited.
December 20, 1995 '
120
1
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°NH
8c M
NOWLEN, HOLT & MINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS EVERETT B. NOWLEN lisaaiseal, CPA
EDWARD T HOLT, CPA
WEST PALM BEACH OFFICE WILLIAM B. MINER, CPA
215 FIFTH STREET, SUITE 200 ROBERT W. HENDRIX, JR., CPA
POST OFFICE BOX 347 JANET R. BARICEVICH, CPA
WEST PALM BEACH, FLORIDA 33402-0347 KATHLEEN A. MINER, CPA
TELEPHONE (561) 659-3060 R. GREGORY SMITH, CPA
FAX (561) 835-0628 ROBERT W. HELMREICH, CPA
TERRY L. MORTON, JR., CPA
N. RONALD BENNETT, CPA
J. MICHAEL STEVENS, CPA
MARK B. ELHILOW, CPA
DANIELA' E. RUSSELL, CPA
BELLE GLADE OFFICE
333 S. E. 2nd STREET
POST OFFICE BOX 338
MANAGEMENT LETTER BELLE GLADE, FLORIDA 33430-0338
TELEPHONE (561) 996-5612
FAX (561) 996-6246
The Honorable Mayor and Village Council
Village of Tequesta, Florida
We have audited the general purpose financial statements of the Village of Tequesta, Florida for
the year ended September 30, 1995 and have issued our report thereon dated December 20,
1995.
' In planning and performing our audit of the general purpose financial statements of the Village
of Tequesta, Florida for the year ended September 30, 1995, 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 considera-
tion 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. Neverthe-
' less, we do think that they deserve your careful evaluation. The status of these comments will
be reviewed during the next audit engagement. We have already discussed many of these
comments with the management of the City and we will be pleased to discuss them in further
' detail at your convenience, to perform any additional study of these matters, or to assist you in
implementing the recommendations.
' PRIOR YEAR COMMENTS WHICIi CONTINUE TO APPLY
' Segregation of Duties
There is inadequate separation of duties in some of 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.
121 _
' AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • ACCOUNTING FIRMS ASSOCIATED INC.
While some duties have been segregated since the prior year report, below are
weaknesses that still exist.
° Bank reconciliations are prepared by persons who participate in the 1
receipt and disbursement of cash.
° Recordkeeping functions for investments and their income are '
performed by the same individual who initiates investment
transactions and has access to cash. '
While a lack of segregation in these areas is due to the small staff
available, consideration should be given to separation of these '
duties in the future as more staff becomes available. In the
interim, a responsible official independent of the above listed
functions should periodically perform tests to determine if the '
accounting procedures in place are being followed.
All other recommendations from the prior year audit were implemented. t
CURRENT YEAR COMMENTS '
Compliance with Florida Statute 218.503 '
Nothing came to our attention that would cause us to believe that the Village is
or at any time during the fiscal year was in a state of financial emergency as '
defined in Section 218.503(1), Florida Statutes.
Compliance with Florida Statute 218.32 ,
The financial report for the Village of Tequesta, Florida to be filed with the
Department of Banking and Finance pursuant to Section 218.32(1)(b), Florida '
Statutes has not been prepared as of the date of the audit report. The report is
due on or before March 31, 1996.
Oversight Unit and Component Units '
The Village of Tequesta, Florida is a municipal corporation organized pursuant '
to Special Act 57-1915, Laws of Florida, 1957. Based upon the application of
criteria defined in publications cited in Chapter 10.553, Rules of the Auditor
General, the Village has determined that the only component unit operating within t
the jurisdiction of the Village that would be required to be included in the general
purpose financial statements of the Village, is the Firefighters' Retirement System
which is included as a pension trust fund. '
t
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Other Current Year Comments
Our audit did not disclose any further items that would be required to be reported
under Chapter 10.554(1)(f), Rules of the Auditor General.
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.
'71~w.1r~. ,llQ2l t ~tr«~. 0. d.
December 20, 1995
123
15-
J'."WT,
tu,