CAFR_FY Ending_09/30/19961
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
VILLAGE OF TEQUESTA, FLORIDA
September 30, 1996
Prepared by the Finance Department
VII.LAGE OF TEQUESTA, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
September 30, 1996
TABLE OF CONTENTS
Page
um
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 16- 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/Fund Balance-Proprietary Fund
Type and Similar Trust Fund 27
Statement of Cash Flows--Proprietary Fund Type 28- 29
Notes to Financial Statements 30- 68
Supplemental Information
General Fund
Schedule of Revenues--Budget and Actual 69- 71
Schedule of Departmental Expenditures--
Budget and Actual 72- 80
Special Revenue Fund
Schedule of Revenues--Budget and Actual 81
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VILLAGE OF TEQUESTA, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
September 30, 1996
TABLE OF CONTENTS (Continued)
Page
Number
Financial Section (continued)
Capital Projects Funds
Combining Balance Sheet 82
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance 83
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance -Budget and Actual 84- 85
Proprietary Fund (Enterprise Fund)
Schedule of Operating Expenses-Budget and Actual 86
Comparative Summary of Operations--Fiscal Years
Ended September 30, 1996 and 1995 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 ~
Schedule of General Fixed Assets by Function 91
Schedule of Changes in General Fixed Assets
By Function 92
Required Supplemental Information -Village
Employees' Pension Trust Fund 93- 95
Schedule of Insurance 96
Schedule of Federal Financial Assistance 97- 98
Schedule of State Financial Assistance ~-1~
VILLAGE OF TEQUESTA, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
September 30, 1996
TABLE OF CONTENTS (Continued)
Page
Number
Statistical Section
General Revenues by Source 101-102
General Government Expenditures by Function 103-104
Property Tax Levies and Collections 105
Taxable Value and Just Value of Taxable Property 106-107
Property Tax Rates--All Direct and Overlapping
Governments 108-109
Ratio of Net General Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita 110-111
Legal Debt Margin 112
Computation of Direct and Overlapping Debt 113
Ratio of Annual Debt Service Expenditures for General
Bonded Debt to Total General Expenditures 114
Revenue Bond Coverage--Water Bonds 115-116
Property Value, Construction and Bank Deposits 117
Principal Taxpayers 118
Miscellaneous Statistics 119
Demographic Statistics 120
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 Standards 121-123
Independent Auditor's Report on Internal Control
Structure Used in Administering Federal Financial
Assistance Awards Programs 124-126
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VILLAGE OF TEQUESTA, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
September 30, 1996
TABLE OF CONTENTS (Continued)
Page
Number
Other Reports (continued)
Independent Auditor's Report on Compliance Based
on an Audit of General Purpose Financial Statements
Performed in Accordance with Government
Auditing Standards 127-128
Independent Auditor's Report on Compliance with
the General Requirements Applicable to Federal
Financial Assistance Awards Programs 129-130
Independent Auditor's Report on Compliance with
Specific Requirements Applicable to Nonmajor
Federal Financial Assistance Awards Program
Transactions 131-132
Independent Auditor's Report on Compliance with
Laws and Regulations Applicable to State Grants
and Aids Appropriations Based on an Audit of
Financial Statements Performed with Government
Auditing Standards 133-134
Management Letter 135-138
Response to Management Letter 139-140
VILLAGE OF TEQUESTA
Post Office Box 3273 357 Tequesta Drive
Tequesta. Florida 33469-0273 (407) 575-6200
Fax: (407) 575-6203
March 24, 1997
To the Citizens of the
Village of Tequesta, Florida
The Comprehensive Annual Financial Report of the Village of Tequesta, Florida for the
fiscal year ended September 30, 1996, is hereby submitted. Responsibility for both the accuracy
of the data, and the completeness and fairness of the presentation, including all disclosures, rests
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.
Recycled Paper
ECONOMIC CONDITION AND OUTLOOK
The Village is located at the northeastern boundary of Palm Beach County. Tequesta
is a relative affluent residential community with adequate commercial facilities necessary to
provide goods and services to its residents. Northern Palm Beach County ranks as one of the
top growth areas in the country. Although Tequesta's growth potential is restricted by the
natural boundaries of the Atlantic Ocean to the east, the Loxahatchee River to the west and by
the Town of Jupiter to the south and Martin County to the north, Tequesta's limited growth
potential for the next decade is favorable.
Property values for three year period - 1992 through 1994, decreased an average 1.7
per year. For the past two year period - 1995 through 1996, property values increased an
average of 3.0% per year. The Village will continue to monitor property values to ensure that
any 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 1996 budget, the Village considered strategies to accelerate
appreciation of property values by improving enforcement and compliance of existing building
and zoning codes of the municipality. It was determined that efforts should be taken to help
stimulate appreciation of property values and promote quality growth x7thin the Village, while
addressing program enhancements in a planned and coordinated manner in keeping within the
anticipated growth of the tax base. The Village management addressed such concerns by the
following actions:
To ensure progress in the appearance of properties within the
Village and increase property values, the Village Council abolished
the Code Enforcement Board and all violations were turned over
to the Special Master - a lawyer that adjudicates code compliance
issues similar to an administrative judge.
Implemented a temporary two-year moratorium on the collection
of fire rescue, police service and recreation impact fees, on all
new residential construction completed prior to October 12, 1997,
to stimulate residential development.
Implemented compliance measures for landscape requirements for
commercial properties to enhance appearance of properties and
increase property values pursuant to a fully amortized ordinance
requiring the same.
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' INFRASTRUCTURE MAINTENANCE AND EXPANSION
t On October 13, 1995 the Village experienced a 500 year storm which resulted in
extensive flood damage to residential properties and Village infrastructure. President Clinton
approved disaster relief for flood victims and Village management efforts resulted in a Federal
' Emergency Management Agency - FEMA grant via the Florida Department of Community
Affairs. The grant of $265,695 was used to repair and replace infrastructure damaged by the
flood. All repairs to Village infrastructure were completed during this fiscal period.
p ty
' .Maintenance and ex ansion of the communi '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 1996 Capital Improvement Fund expenditures totaled $665,523 for the following
improvements:
' General Government Improvements
' Village Hall Parking Lot $ 22,345
Village Hall Landscape 13,582
Village Hall Sign 22 68
Total General Government Improvements 58,607
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Transportation and Drainage Improvements
FEMA (Federal Emergency Management Act) '
Drainage Improvements (October 1995 Flood
Drainage) $200,757
Tequesta Drive Bridge 5,945 '
Dover Ditch Engineering & Permitting 27,425
Dover Ditch Dredging Project 99,756
Country Club Drive North Place Engineering 3,200 '
Tequesta Drive Drainage Division Project 12,350
Fairway East Drainage Project 23,152
Drainage System Engineering and Design
28,600 '
Stormwater Utility Creation and Engineenng 38,000
Country Club Drive Drainage Expansion 4,305
Seabrook Road No. Drainage System
19,800 '
Tequesta Drive Streetscape 12,500
Seabrook Road Streetscape 4,519
U.S. Highway One Median
13.627 '
Total Transportation and Drainage Improvements 493.936 '
Culture and Recreation Improvements
Tequesta Recreation Center -New Roof 18,105 '
Tequesta Park and Lighting 7,200
Tequesta Drive Pathway -Seabrook of Riverside 5,845 '
Tequesta Lighting 81, 830
Total Culture and Recreation Improvements 112 9 0 '
Total Capital Improvement Fund Expenditures 665 523
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The 1996 Bond Construction Fund expenditures totaled $490,653 for the following
improvements:
Constitution Park Construction Project 49 6
The 1996 Proprietary Fund -Water Enterprise expenditures for the requisition and
construction of fixed assets total $802,002 for the following improvements:
Improvements to Buildings
Building Renovations ~.$ ~4~
uiDment and System Renewal and Renla
Water System Improvements 33,955
Machinery and equipment 13,322
Vehicle purchases 11,921
Total Equipment and System Renewal and Replacement 59.198
Improvements Other Than Buildings
Water System Modeling 4,162
Centralized Garage 34,862
Well #26 Legal and Engineering Services 8,709
Well #26 164,250
Well #27 124,595
Reverse Osmosis Engineering Services 173,634
Reverse Osmosis Wells Engineering Services 221,387
Reverse Osmosis Effluent Disposal 2.500
Total Improvements Other Than Buildings 734 099
Total Proprietary Fund Expenditures 802 ~
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FINANCIAL Il\'FORMATION
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, 1996 and the amount and percentage of increases and decreases in relation to
prior year revenues.
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Source
Percent
Amount f To
Percent
Increase of
(Decrease) Increase
From 1994 encease
Taxes $3,184,007 64.29% $198,434 6.649b
Licenses and Permits 246,450 4.97 (45,822) (15.67)
Intergovernmental 950,477 19.20 51,776 5.76
Charges for Services 213,283 4.31 (28,565) (11.81)
Fines and Forfeits ,78,578 1.59 35,023 80.41
Interest Income 119,331 2.41 (9,622) (7.46)
Impact Fees 8,954 .18 (6,087) (40.46)
Miscellaneous 5,613 .11 (17,665) (75.88)
Intergovernmental Services 145 7 2.94 4,995 3.54
Total Revenues 4 952 453 1~ 182 467 3.82 %
Taxes accounted for the major source of revenues and the most significant increase in
actual resources received for 1996. Tax revenues consist of three district revenue sources:
ad valorem, property taxes, franchise fees and utility service taxes. The ad valorem property
tax rate for 1996 was 6.3425 mills, an increase of 3.5 % over the previous year millage rate of
6.1280 mills. Property values also increase 2.7% over the previous year valuation. A concerted
effort to eliminate traffic violations by the Village Police Department resulted in a significant
increase in revenues for fines and forfeitures.
' Expenditures
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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, 1996, and the amount and percentage of increases and decreases in relation to
prior year amounts:
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Purpose
Percent
Amount of To
Percent
Increase of
(Decrease) Increase
From 1994 ecreas
General Government $ 815,361 14.54% $ 45,097 5.85%
Public Safety 2,578,374 45.96 148,524 6.11
Physical Environment -- -- (4,179) (100.00)
Transportation 512,964 9.15 54,756 11.95
Human Services 1,033 .00 561 118.85
Culture/Recreation 161,766 2.88 7,258 4.69
Capital Outlay 1,333,931 23.78 (76,479) (5.42)
Debt Service 206,861 3.69 5,446 2.70
Total Expenditures 5 610 290 100.00 % 180 984 3.33 %
The 3.33 % increase in operating expenditures over the previous year expenditure is
attributable primarily to normal cost of living increases provided employees and the Consumers
Price Index (CPI) over the previous year CPI.
Our analysis of the expenditure data presented indicate continued efforts must be taken
by Tequesta to constrain the rising costs of providing governmental 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 $808,327 on September 30, 1996,
which is adequate to provide the capital resources necessary for government operations. It is
unlikely that Tequesta will enter the short-term debt market to pay for current operating
expenditures.
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PROPRIETARY OPERATIONS
Water Oueratio
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 1996 1995 (Decrease) Increase
1,000 Gallons Amount Amount From 1993 ecrease
Water Sales $3,070,698 $2,738,893 $331,805 12.11
Total Water Consumption 1,040,250 1,014,700 25,550 2.51
Average and Daily Consumption 2.850 2.780 .070 2.51
Refuse/Recvclin~ Operations
Refuse and recycling collection service operations are also accounted for in the Enterprise
Fund. The Enterprise Fund income and expenses for 1996 is shown on the following schedules:
Refuse/
Income and Expenses Water Recycling Total
Operating Revenues $3,070,698 $263,750 $3,334,448
Operating Expenses 2 451 48 263.124 2 714
Operating Income (Loss) 619 213 626 619, 839
Non-Operating Revenues (expenses)
Income (loss) before Operating transfer
Operating transfer out
Net Income (Loss)
170.779 170.779
789,992 626 790,618
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620 992 ~ 6~2 621 61
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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, 1996, the Village made
the final principal payment of $120,000.
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 Village Employee
Pension Trust Fund. Reference Note 7 (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 Series 1994, in the amount of $1,365,000, dated June 24, 1994. Reference
Note 16 (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 IO% of the assessed taxable value of real property located
within Tequesta. As of September 30, 1996, taxable real property within Tequesta was assessed
at $337,376,976.
As of September 30, 1996, Tequesta's net bonded debt was $1,214,023, the ratio of net
bonded debt to taxable value was .34%, and the net bonded debt per capita was $261.81.
Cash Management
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, amounts held by Tequesta's agent in a deferred compensation plan and
funds held with the State Pension Trust Fund Pool. Investments with the State Board of
Administration consist of obligations of the U.S. Treasury and its agencies, money market
securities of highest quality such as commercial paper, banker's acceptance, corporate notes and
repurchase agreements. Because of the short maturities and high quality, securities in this fund
are considered practically risk free.
On September 30, 1996, investments held by Tequesta totaled $4,777,896, 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 5.42%.
Risk Management
During 1996, 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
Community Right-to-Know Act. A detailed list of insurance in effect is contained in the
Schedule of Insurance section of this report.
Independent Audit
OTHER INFORMATION
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.
' Awar
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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, 1995. 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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Acknowledgements
The preparation of the Comprehensive Annual Financial Report on a timely basis was '
made possible by the dedicated service of the entire staff of the Finance Department. Each
member of the departments mentioned has our sincere appreciation for the contributions made
in the preparation of this report. '
In closing, without the leadership and support of the Village Council of the Village of
Tequesta, preparation of this report would not have been possible. '
Sincerely,
Thomas G. Bradford Bill C. K cavelis '
Village Manager Directo of 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, 1995
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 ~F~Fq
i ^ifD~ATES ~ ~
GNAW ~
~, s Preside
~-~ ~C~
`~~~~
Executive Director
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VILLAGE OF TEQUESTA
ORGANIZATION CHART
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VII.LAGE OF TEQUESTA, FLORIDA
Council -Manager Form of Government
VILLAGE COUNCIL - 1995-1996
Ron T. Mackail Mayor
Elizabeth A. Schauer Vice-Mayor
Joseph N. Capretta Councilmember
Carl L. Hansen Councilmember
Michael R. Meder Councilmember
VII~LAGE 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
Stephen J. Allison
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 ACCOUNTANT
Nowlen, Holt & Miner, P.A.
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VILLAGE OF TEQUESTA, FLORIDA
FINANCIAL STATEMENTS WITH
INDEPENDENT AUDITOR'S REPORT THEREON
SEPTEMBER 30, 1996
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NOWLEN, HOLT & MINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS EVERETT B. NOWLEN hsao-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 BELLE GLADE, FLORIDA 33430-0338
TELEPHONE (561) 996-5612
FAX (561)996-6248
The Honorable Mayor and Village Council
Village of Tequesta
Tequesta, Florida
We have audited the accompanying general purpose financial statements of -the Village of
Tequesta, Florida, as of September 30, 1996, 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; Government
Auditing Standards, issued by the Comptroller General of the United States; and the provisions
of Office of Management and Budget Circular A-128, Audits of State and Local Governments.
' Those standards and OMB Circular A-128 require that we plan and perform the audit to Main
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
t 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 general purpose 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,
1996, 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 Auditing Standards, we have also issued a report dated
' January 20, 1997, on our consideration of the Village's internal control structure and a report
dated January 20, 1997, on its compliance with laws and regulations.
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' AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS •ACGOUNTING FIRMS ASSOCIATED INC
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
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 conducted 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 presented 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.
January 20, 1997
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GENERAL PURPOSE FINANCIAL STATEMENTS
VILLAGE OF TEQUESTA, FLORIDA
Combined Balance Sheet -All Fund Types and Account Groups
September 30, 1996
Governmental Fund Types
Special Capital
General Revenue Projects
Assets and other debits
Cash and cash equivalents
Investments
Accounts receivable (net of allowance
for uncollectibles)
Due from other funds
Due from other governments
Grants receivable
Inventories of supplies
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
$ 470,556 $ 63,449 $279,657
633,941 198,171
6,723
85,843 16,843 37,500
20,547
18,290 66,384
11,542
1 247 442 80 292 581 712
18
Proprietary
Fund T}!pepe
Enterprise
$1,171,989
1,317,853
320,273
4,410
26,991
400,111
1,196,600
6,552,758
$10.990.985
Fiduciary
Fund Types
Trust
and
Al'~Y
$ 6,151
776,240
Account Groups
General General
Fixed Long-Term
Assets Debt
3,312,806
1961,135
782 391 3 312 806 1 961 135
19
Totals
(Memorandum
Only
x,$1,991,802
\, 2,926,205
326,996
144,596
20,547
84,674
38,533
~ 400,111
1,196,600
9,865,564
1,961,135
18 956 763
(Continued)
VILLAGE OF TEQUESTA, FLORIDA
Combined Balance Sheet -All FFund Types and Account Groups
September 30, 1996
(Continued)
Liabilities, equity and other credits
Liabilities
Accounts payable
Accrued liabilities
Payyable from restricted assets
~iccounts payable
Deposits
Due to other funds
Due to other governments
Deferred revenue
Contracts payable
Deferred compensation payable
Current pportion of:
Capitarized leases
Notes pa able
Compensated absences
Obligations under capitalized leases
Notes payable
Improvement revenue bonds payable
Obligations under joint venture agreements
Total liabilities
uity and other credits
investments in general fixed assets
Contributed capital
Retained earnings
Reserved for 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
Disaster emergency relief
Road project
Undesignated
Total equity and other credits
Total liabilities, equity and other credits
20
Governmental Fund Types
Special Capital
General Revenue Projects
$ 78,103 $
142,247
4,410
9,824
1,734 44,315
236.318
11,542
14,583
6,595
24,907
95,170
50,000
$ 45,575
1
16,046
i
44,315 61,621
808,327 35,977
1,011.124 35.977
1 247 442 80 292
21,125
103,122
52,350
343.494
520.091
581 712
1
1
1
1
1
1
1
1
1
1
1
Proprietary Fiduciary
Fund Type Fund T +~s Account Gr p
~
l
T
t
Trust eneral
General a
s
o
and Fixed Long-Term (Memorandum
Enterprise Agency Assets Debt Onlyl
$ 101,257 $ $ $ $ 224,935
20,582 162,829
15,141 15,141
219,588 219,588
140,186 144,596
11,424
419,757 465,806
62, 850 78, 896
406,036 406,036
797 797
3,860
76,127
324,220 3,860
400,347
370,196 370,196
4,545 8,719 13,264
1,25g,~ 1,25g,~
1,066.290 406.036 1.961,135 3:775.715
3,312,806 3,312,806
3,667,811 3,667,811
1,002,165 1,002,165
5,254,719 5,254,719
21,125
11, 542
4,875 19,458
371,480 371,480
6,595
128,029
95,170
50,000
52,350
1,187,798
9.924,695 73 6,355 3 12 8 15,181,048
$10,990.985 782 391 3 312 806 1 961 13 18 956 76
See notes to financial statements.
21
VILLAGE OF TEQUESTA, FLORIDA
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, 1996
General
Revenues
Taxes $2,866,417
Licenses and permits 167,659
Intergovernmental 517,798
Charges for services 213,283
Fines and forfeits 76,439
Interest 84,086
Impact fees 8,954
Miscellaneous 5,613
Intragovernmental services 145,760
Total revenues 4.086.009
Ex enditures
Current
General government 815,361
Public safety 2,578,374
Transportation 512,964
Human services 1,033
Culture/recreation 161,766
Capital outlay 177,755
Debt service
Principal retirement 40,556
Interest 25.750
Total expenditures 41313,559
Excess of revenues aver (under) expenditures (227,550)
Other financing sources (uses)
452
20
Debt proceeds/note payables ,
Sales of surplus matenal 602
Operating transfers in 355,600
Operating transfers out (215,000)
Total other financing sources (uses) 161,654
Excess of revenues and other sources over
(under) expenditures and other uses (65,896)
Fund balances, October 1, 1995 1,077,020
Residual equity transfer in
Fund balances, September 30, 1996 1 011 124
22
1
fl
1
1
1
1
1
1
Governmental Fund Tykes
Special Capital
Revenue Projects
$ 317,590 $
78,791
432,679
35,245
396.381
60,000
80.555
140 55
255.826
3( 05.600)
30( 5.600)
(49,774)
85,751
35 977
467.924
1,156,176
1.156.176
(688.252)
334,000
334.000
(354,252)
513,233
361,110
520 091
Fiduciary
Fund T
Expends le
Trust Fund
2,139
2.139
2,139
2,139
2,736
4 875
Totals
(Memorandum
Only
$3,184,007
246,450
950, 477
213,283
78,578
119,331
8,954
5,613
i45 7
4,952,453
815,361
2,578,374
512,964
1,033
161,766
1,333,931
100,556
106.305
5.610.290
(657, 837)
20,452
602
689,600
X520,600)
190,054
(467,783)
1,678,740
361.110
1 572.067
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, 1996
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
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/notes payable
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, 1995
Variance -
Favorable
Bud eg t Actual (Unfavorable)
$2,799,945 $2,866,417 $ 66,472
124,400 167,659 43,259
489,445 517,798 28,353
217,130 213,283 (3,847)
41,000 76,439 35,439
71,000 84,086 13,086
4
10,000 5;613 ;387)
(
145,760 145, 60
3,898.680 4.086.009 187,329
856,115 815,361 40,754
2,669,125 2,578,374 90,751
521,705 512,964 8,741
2,850 1,033 1,817
166,690 161,766 4,924
189,765 177,755 12,010
40,590 40,556 34
25,770 25.750 20
4,472,610 4,313.559 159.051
(573,930) (227,550) 346.380
20,452 20,452
2,600 602 (1,998)
351,600 355,600 4,000
(215,015) (215.000) 15
139.185 1 1 654 22.469
434 745 (65,896) 368 849
1,077,020
Residual equity transfer in
Fund balances, September 30, 1996
1 011 124
24
1
i~
1
1
1
Special Revenue Fund
Vanance -
Favorable
Budget Actual lLTnfavorable)
$ 309,565 $ 317,590 $ 8,025
75,000 78,791 3,791
2,000
(2, ~)
386.565 396 3 1 9,816
60,000 60,000
80,565 80,555
140.565 140,555
246,000 255.826
10
10
9.82b
3( 05,600) 30~ 5.600)
30~ 5.600) OS 6
59 600 (49,774) 9 826
85,751
35 977
Cavital Proiects Fund
v anance -
Favorable
Budget Actual unfavorable)
$ $ $
430,680 432,679 1,999
17,000 35,245 18,245
447,680 467,924 20,244
1,195,190 1,156,176
1 195 19 1,156,176
X47,51 ) 88 252
334,015 334,000
334.015 334
(413,495) (354,252)
513,233
61 11
520 091
25
39,014
39,014
59.258
(15)
(15)
59 243
(Continued)
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, 1996
(Continued)
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeits
Interest
Impact fees
Miscellaneous
Intrrgovernmental services
Total revenues
Ex enditures
Current
General government
Public safety
Transportation
Human services
Culture/recreation
Capital outlay
Debt service
Totals CMemorandum Onl L
anance -
Favorable
Budget Actual (Unfavorable)
$ 3,109,510 $3,184,007 $ 74,497
199,400 246,450 47,050
920,125 950,477 30,352
217,130 213,283 (3,847)
41,000 76,439 35,439
90,000 119,331 29,331
8,954 8,954
10,000 5,613 (4,387)
145,760 145,760
4,732.925 4.950,314 217.389
856,115 815,361 40,754
2,669,125 2,578,374 90,751
521,705 512,964 8,741
2,850 1,033 1,817
166,690 161,766 4,924
1,384,955 1,333,931 51,024
Principal retirement 100,590
Interest 106,335
Total expenditures 5.808,365
Excess of revenues over (under) expenditures (1,075.440)
Other financing sources (uses)
Debt proceeds/notes payable
Sales of surplus materials 2,600
Operating transfers in 685,615
Operating transfers out X520,615)
Total other financing sources (uses) 167.600
Excess of revenues and other sources over
(under) expenditures and other uses 907 840
Fund balances, October 1, 1995
Residual equity transfer in
Fund balances, September 30, 1996
100,556
106,305
5 610 29
(659,976)
20,602
689,600
X520.600)
190.054
(469,922)
1, 676,004
361.110
1 567 192
See notes to financial statements.
26
34
-~
198.075
415.464
20,452
(3;985)
__~
22,454
437 918
fl
1
u
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, 1996
Operating revenues
Charges for services -water
Charges for services -refuse and recycling
Contnbutions
Interest income
' Total operating revenues
O erating expenses
Purchased services -water
' Purchased services -refuse and recycling
Personal services
Contractual services
Supplies
Heat, light and power
Repairs and maintenance
Depreciation
Administration
' Distributions
Ir--I
LJ
Total operating expenses
Operating income
Nonoperating revenues (expenses)
Interest income
Interest expense and fiscal charges
Aid to community organizations
Total nonoperating revenues (expenses)
Income before operating transfers
Operating transfers (out)
Net income
Retained earnings, October 1, 1995
Residual equity transfer out
Retained earnings, September 30, 1996
Proprietary
Fund Type
Enterprise
$3,070,698
263,750
33. 34,448
667,950
263,124
664,263
380,264
63,016
100,225
177,702
398,065
2 714 6 9
619 8 9
213,224
(29,945
12
170,779
790,618
169 000
621,618
5,996, 376
3 1 11
6 256 884
Fiduciary
Fund Tvne
Pension
Trust Fund
12,151
165,244
7,102
11,144
18.246
146,998
146,998
146,998
224,482
371 '480
See notes to financial statements.
' 27
Totals
(Memorandum
Only)
$3,070,698
263,750
129,153
36.091
3.499.692
667,950
263,124
664,263
380,264
63,016
100,225
177,702
398,065
7,102
11.144
2,732,855
766,837
213,224
(29,945)
(12.500)
170.779-
937,616
{ 169.000)
768,616
6,220, 858
(361,110)
66
VILLAGE OF TEQUESTA, FLORIDA
Statement of Cash Flows -
Proprietary Fund Type
For the Fiscal Year Ended September 30, 1996
Proprietary
Fund Type
Enterprise
Cash flows from operating activities:
Net operating income $ 619,839
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation 398,065
Changes in assets and liabilities:
(Increase) decrease in:
Accounts receivable (94,254)
Due from other funds 52,828
Inventories (1, 889)
Increase (decrease) in:
Accounts payable (73,390)
Accrued liabilities 3,906
Deposits 8,049
Deferred revenue 419,757
Compensated absences 15,501
Due to other funds 33,160
Due to other governments 1,600
Net cash provided by operating activities 1,383,172
Cash flows from noncapital financing activities:
Operating transfer to other fund (169,000)
Contribution L 2, 500)
Net cash used for noncapital financing
activities .~ 181, 500)
28
1
1
Proprietary
Fund Type
Enterprise
Cash flows from capital and related financing
activities:
Capital contributions $ 96,630
Acquisition and construction of fixed assets (760,912)
Principal paid on revenue bonds and
equipment leases (281,438)
Interest paid on revenue bonds and equipment leases (17,917)
Fiscal charges paid on revenue bonds (4,474)
Payments on construction contracts X29,723)
Net cash used for capital and related
financing activities (997,8341
Cash flows from investing activities:
Purchases of investments (181,769)
Interest received on investments 209.659
Net cash provided by investing activities 27.890
Net increase in cash and cash equivalents 231,728
Cash and cash equivalents, October 1, 1995 1,340,372
Cash and cash equivalents, September 30, 1996 1 572 100
Noncash Investing, Capital and Financing Activities
Contribution of fixed assets from contractors $ 41,350
Construction contracts payable 62,850
Forgiveness of debt to Capital Improvement Fund 361,110
See notes to financial statements.
29
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1996
NOTE 1 - SUNIlVIARY OF SIGNIFICANT ACCOUNTING POLICIES
The Reporting Entity
The Village of Tequesta, Florida is a municipal corporation organized in 1957 pursuant to
Special Act 57-1915, Laws of Florida. The Village has aCouncil-Manager form of government.
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 Village Employees' Pension Trust Fund, 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
1
1
1
u
r
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1996
NOTE 1 - SUNIlVIARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The Reporting Entity (Continued)
Village Employees' Pension Trust Fund
The Village's regular full-time employees who are sworn firefighters and any new
hire employees January 1, 1996 or thereafter are eligible to participate in the
Village Employees' Pension Trust Fund (VEPF). VEPF functions for the benefit
of these employees and is governed by a seven member board, of which the
Village Council appoints three. The Village and VEPF participants are obligated
to fund all VEPF 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 VEPF is fiscally dependent
on the Village of Tequesta, which makes the VEPF a component unit of the
Village. Since the VEPF provides services exclusively for the benefit of the
Village, the VEPF is reported as a blended component unit, specifically as the
Village Employees' Pension Trust Fund. This component unit does not issue a
stand alone financial report.
Basis of 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, 1996
NOTE 1 - SUNIlVIARY OF SIGNIFICAl\"'T 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 Tvpes
Governmental funds are used to account for all or most of a government's general
activities, including the collection and disbursement of eazmazked 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.
T'he 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
it
1
' VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
' September 30, 1996
' TOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
' Basis of Presentation -Fund Accounting (Continued)
Proprietary Fund Type
Enterprise Fund
' The Enterprise Fund is used to account for operations that are financed and
operated in a manner similar to private business enterprises -where the intent of
the governing body is that the costs (expenses, including depreciation) of
' providing goods or services to the general public on a continuing basis be
financed or recovered primarily through user charges. The Enterprise Fund of
the Village is the Water Fund which accounts for the provision of water services
' and refuse and recycling services to the residents of the Village and some
residents of the County. All activities necessary to provide such services are
' accounted for in this fund including, but not limited to, administration,
operations, maintenance, financing and related debt service and billing and
collection.
' Beginning October 1, 1995 refuse and recycling fees are billed as a non-ad
valorem tax assessment and handled by the Palm Beach County Tax Collector.
' Those new residents not on the tax roll as of January 1, 1995 were billed along
with the water service charges. Palm Beach County periodically remits the funds
collected to the Village.
' Since refuse and recycling fees are billed along with the water service charges
or collected by Palm Beach County Tax Collector, 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, 1996
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Basis of Presentation -Fund Accounting (Continued)
Pro~rietary Fund 71~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 are as follows:
Buildings 40 years
Improvements 20 - 25 years
Equipment 4 - 10 years
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 Village Employees Pension Trust
Fund to account for its retirement system for firefighters and any employees hired
January 1, 1996 or thereafter.
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
' VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1996
' NOTE 1 - SUNIlVIARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Basis_..f Presentation -Fund Accounting (Continued)
Fiduciary Fund 7~pes (Continued)
' The Villa e has one Ex ndable Trust Fund, the Special Law Enforcement Trust
g Pe
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 Grouns
1
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, 1996
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Basis of Presentation -Fund Accounting (Continued)
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
1
' VII.LAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
' September 30, 1996
' NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
' Basis of Accounting
The accounting and financial reporting treatment applied to a fund is determined by its
i 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.
1
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
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
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. Frincipal 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.
' 37
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1996
NOTE 1 - S[TNLMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Basis of Accounting (Continued)
Those revenues susceptible to accrual aze 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 aze 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 accounting is followed for the proprietary fund and pension trust fund.
Under this method of 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 #f20, 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
The Total columns on the combined statements are captioned "Memorandum Only" to indicate
that they are presented only to facilitate financial analysis. Data in these columns do not present
financial position, 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.
38
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1996
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Budgets and Budgetary Accountine
Formal budgetary integration is employed as a management control device during the year for
the General Fund, Special Revenue Fund, Capital Project Funds and the Enterprise Fund. All
budgets are legally enacted through passage of a resolution.
Budgets for the General, Special Revenue, Capital Project Funds and the Enterprise Fund are
adopted on a basis consistent with generally accepted accounting principles. For budgeting
purposes, current year encumbrances are not treated as expenditures.
The Village follows these procedures in establishing the budgetary data reflected in the financial
statements:
1. Prior to September 1, the Village Manager submits to the Village Council a
proposed operating budget for the fiscal year commencing the following
October 1. The operating budget includes proposed expenditures and the means
of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. Prior to October 1, the budget is legally enacted through passage of a resolution.
Changes or amendments to the total budgeted 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.
39
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1996
NOTE 1 - SUNIlVIARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Budgets and Budgetary Accountine (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 are not balanced because they do not include amounts budgeted from the
beginning fund balance.
A budget for operating expenses of the Enterprise Fund (Water Fund) is also legally adopted on
a basis consistent with generally accepted accounting principles in accordance with requirements
of Ordinance 260-Water Refunding Revenue Bonds, Series 1985.
Appropriations lapse at the end of the fiscal year.
Encumbrances
Encumbrance accounting is used for purposes of budgetary control. Encumbrances outstanding
at year end are reported as reservations of fund balances until expended or accrued as a liability
of the fund.
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 Village Employees Pension Trust Fund are reported at market value.
Inventories
Inventories are 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 are equally offset by a fund balance reserve which indicates that they do
not constitute "available spendable resources" even though they are a component of net current
assets.
40
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VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1996
NOTE 1 - S[TNIlVIARY 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 limed 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.
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.
i
' 41
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1996
NOTE 1 - SUNIlVIARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Fund Eauity
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.
Cam~ensated Absences
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 in the period 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, are 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 Board 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.
42
1
VILLAGE OF TEQUFSTA, FLORIDA
Notes to Financial Statements
September 30, 1996
1\OTE 1 -SUMMARY 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.
1\OTE 2 -CASH AND INVESTMENTS
Cash and Cash Equivalents
At year end, the carrying amount of the Village's deposits was $1,736,822 and the bank balances
were $2,082,298. 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
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, 1996
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 was 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 $941,188.
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.
Obligations of United
States government
Investment in:
State investment pool
Deferred compensation
mutual fund
Mutual funds (money market)
State pension trust fund pool
CategorX Carrying Market
1 Amount Value
941 188 $ 941,188 $1,017,054
2,405,377 2,405,377
406,036 406,036
655,091 655,091
370.204 370.204
4 777 896 4 853 762
The state investment pool, administered by the State Board of Administration of Florida,
contained certain floating rate notes during the 1996 fiscal year and as of September 30, 1996
which were indexed based on the prime rate and/or one and three month LIBOR rates. These
investments, representing approximately 0.81 % of the state investment pool portfolio at
September 30, 1996, were purchased to add relative value to the portfolio.
44
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VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1996
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/
D~osits Investments
Cash and cash equivalents $1, 991, 802 $
Investments 2,926,205
Restricted assets
Cash and cash equivalents 400,111
Investments 1 196
Balance sheet totals 2,391,913 4,122,805
Adjustments
Mutual funds (money market) (655.091) 655.091
Risk categorization totals 1 736 822 4 777 896
NOTE 3 -RESTRICTED ASSETS
Restricted assets as of September 30, 1996 consist of the following accounts:
Cash Investments Total
Meter Deposit Accounts $ 41,091 $ 173,000 $ 214,091
Capital Improvement
Accounts
Jupiter Water Increase Account
359,020 643,145 1,002,165
380.455 0 4
00 111 1 196 1 596 711
45
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1996
NOTE 4 -ACCOUNTS RECEIVABLE -ENTERPRISE FUND
Enterprise Fund type accounts receivable consists of the following:
Billed services $ 280,792
Unbilled services 41.481
Total accounts receivable 322,273
Less allowance for uncollectibles X2.0001
Net accounts receivable 320 273
NOTE 5 -COMPONENTS OF FIXED ASSETS
A summary of changes in general fixed assets follows:
Balance Balance
October 1, September 30,
1995 Additions Deletions 1996
Land $ 397,653 $ $ $ 397,653
Buildings 294,333 654,227 948,560
Improvements other
than buildings 258,778 258,778
Equipment 1, 612, 632 109, 977 14, 794 1,707, 815
Construction in
progress 561,809 81 83 643.639
3 125 205 846 034 658 433 33 3$~1
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VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1996
NOTE 5 -COMPONENTS OF FIXED ASSETS (Continued)
The components of fixed assets at September 30, 1996 are summarized as follows:
General
Enterprise Fixed Assets
Fund Account Grouu Total
Land $ 83,336 $ 397,653 $ 480,989
Buildings 399,907 948,560 1,348,467
Improvements other than
buildings 9,462,385 258,778 9,721,163
Machinery and equipment 398,227 1,707,815 2,106,042
Construction in progress 981,133 981,133
11,324,988 3,312,806 14,637,794
Accumulated depreciation 4,772,230 4,772,230
Total $$ 6,5~ 3 312 806 $ 9,865.564
Significant construction commitments as of September 30, 1996 are as follows:
Estimated
Cost Cost to Completion
Description to Date Complete Date
Enterprise Fund
Public Works/Water Garage
Facility $ 47,237 $522,645 May 1997
Well x#26, transmission main
and condemnation expenses 235,671 53,150 May 1997
Well 1/27 204,081 35,406 October 1996
Reverse Osmosis Treatment
Plant -engineering, design
and permitting 200,196 475,500 August 1997
47
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1996 1
NOTE 5 -COMPONENTS OF FIXED ASSETS (Continued) '
Estimated '
Cost Cost to Completion
Description to Date Complete Date
Ente rise Fund (Continued) '
Reverse Osmosis Wells - '
engineering design and
construction $220,390 $142,940 January 1998
Reverse Osmosis Project - '
disposal transmission line 9,750 175,750 Apri] 1998
Water Treatment Rehabilitation '
Plant 36,080 23,555 March 1997
- PL ,
NOTE 6 DEFINED BENEFIT PENSION AN
All Village full-time employees, other than firefighers, hired prior to January 1, 1996 ,
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, 1996 was $1,936,142. The Village's total payroll was $2,533,969.
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 compensation for each year of credited '
service, depending on the years served. Average final compensation is the employee's average
of the five highest years of credited service, depending on the years served. 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.
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VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1996
NOTE 6 -DEFINED BENEFIT PENSION PLAN (Continued)
' The Village's actuarially determined contribution requirement for the year ended September 30,
1996 was $399,558. The actual contribution made was $399,558 (General Fund $321,157,
Enterprise Fund $78,401). The contribution equaled 20.629b of current covered payroll. The
' Village is required by statute to contribute at rates as of September 30, 1996 of 22.24% of
covered payroll for senior management service class, 17.43% of covered payroll for regular
class and 27.10% 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.
' 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,
' 1995 Annual 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 Village has no obligation to
the FRS with respect to such employees. All employees hired on or after January 1, 1996 must
' participate in the Village sponsored retirement plan in effect at the date of their employment.
49
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1996
NOTE 7 - VII,LAGE EMPLOYEES' PENSION TRUST FUND
On September 7, 1993, the Village established asingle-employer defined benefit pension plan
in accordance with Florida Statutes, Chapter 175. This plan solely benefitted full-time
firefighters.
On July 27, 1995 the Village Council enacted Resolution 27-94/95 authorizing the Village to
revoke the election to parkicipate in the Florida Retirement System for all employees hired
January 1, 1996 or thereafter, pursuant to Chapter 95-338, Florida Laws. Subsequent to the
revocation the Village enacted Ordinance 518 which amended the existing firefighters defined
benefit plan to incorporate those police officers and general employees hired January 1, 1996
or thereafter. The ordinance amended the plan provisions and changed the name to the Village
Employees' Pension Trust Fund.
GENERAL PLAN DESCRIPTION AND PROVISIONS
The following description of the retirement plan is provided for summary information purposes
only. Plan participants should refer to the appropriate source documents for more complete
information on the plan.
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, 1996 was $601,643, the Village's total payroll was $2,533,969. As of
September 30, 1996, there were 17 nonvested active employees in the plan.
The plan requires that the plan be administered by a Board of Trustee. The Board consists of
seven trustees. Three trustees are appointed by the Village. Three are elected as follows: One
whom is a full-time firefighter who is elected by a majority of the firefighter members of the
plan; one of whom is a full-time police officer who is elected by a majority of the police officer
members; and one of whom is a full-time general employee elected by a majority of the general
employees. A seventh trustee is chosen by a majority of the first six trustees.
DEFINITIONS OF THE PLAN
"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 member.
"Credited service" is a member's period of employment with the Village measured in years and
parts of years.
50
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1
' VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1996
NOTE 7 -VILLAGE EMPLOYEES' PENSION TRUST F[JND (Continued)
' SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PLAN ASSET MATTERS
Basis of Accounting. The retirement system is reported on the accrual basis of accounting.
t Employee, employer and state contributions are recognized as revenues in the period in which
employee services are performed.
Method Used to Yalue Assets. The plan assets are reported at market value.
SPECIFIC PLAN PROVISIONS FOR POLICE OFFICERS (HIRED JANUARY 1, 1996 OR
THEREAFTER) AND ALL FIREFIGHTERS
Any firefighter or police officer 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 or police
officer 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 or police officer 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 or police officer's younger age and
earlier commencement of retirement benefits. Such reduction shall not exceed 5% per year for
firefighters and 3% for police officers. 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 injury or disease is service connected, the firefighter or police officer shall be entitled to
the greater of (a) or (b):
(a) A monthly pension equal to 42 % of his average compensation, 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.
51
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1996
NOTE 7 -VILLAGE EMPLOYEES' PENSION TRUST FUND (Continued)
SPECIFIC PLAN PROVISIONS FOR POLICE OFFICERS (HIRED JANUARY 1, 1996 OR
THEREAFTER) AND ALL FIREFIGHTERS (Continued)
If the injury or disease is no service connected, the firefighter or police officer shall be entitled
to the greater of (a) or (b):
(a) A monthly pension equal to 25% of his average compensation, 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 firefighter or police officer dies prior to retirement from the Village his beneficiary shall
receive the following benefit:
(a) Line-of-Duty-Death-Benefit - 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 or police officer dies or terminates employment with less than ten years of
credited service, he is entitled to a refund of the money contributed.
Firefighters and police officers 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.
52
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VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1996
NOTE 7 - VII,LAGE EMPLOYEES' PENSION TRUST FUND (Continued)
SPECIFIC PLAN PROVISIONS FOR GENERAL EMPLOYEES
Any general employee who completes ten or more years of credited service and attains age 62,
or completes 30 years of credited service regardless of age is eligible for normal retirement
benefits. The monthly amount of normal retirement income for a general employee is equal to
the number of years of credited service multiplied by 2 % of his average final compensation.
Early retirement may be taken after a general employee 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 general employee'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 injury or disease is service connected, the general employee shall be entitled to the greater
of (a) 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 2% of his average monthly salary based upon his final five years of
service.
If the injury or disease is no service connected, the general employee 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 2 % of his average monthly salary based upon his final five years of
service.
53
VILLAGE OF TEQUESTA, FLORIDA ,
Notes to Financial Statements
September 30, 1996 ,
NOTE 7 -VILLAGE EMPLOYEES' PENSION TRUST FUND (Continued)
SPECIFIC PLAN PROVISIONS FOR GENERAL EMPLOYEES (Continued)
If the general employee dies prior to retirement from the Village, his beneficiary shall receive
an amount equal to the vested pension benefit. A survivor benefit is payable to the beneficiary
starting when the member would have reached retirement age.
If the general employee dies or terminates employment with less than ten years of credited '
service, he is entitled to a refund of the money contributed.
General employees are required to contribute 5% of their compensation to the plan. 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.
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.
FUNDING STATUS AND PROGRESS
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54 '
' VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1996
NOTE 7 -VILLAGE EMPLOYEES' PENSION TRUST FUND (Continued)
FUNDING STATUS AND PROGRESS (Continued)
The pension benefit obligation was determined as part of an actuarial valuation of the plan as
' of October 1, 1995. 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:
' Withdrawal
Rate
20 80
30 64
40 20
50 0
60 0
1
1
° 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.
55
VILLAGE OF TEQUESTA, FLORIDA ,
Notes to Financial Statements
September 30, 1996 ,
NOTE 7 - VII,LAGE EMPLOYEES' PENSION TRUST FUND (Continued) '
FUNDING STATUS AND PROGRESS (Continued) ,
The pension benefit obligation as of October 1, 1995 is as follows:
Retirees and beneficiaries currentl '
Y
receiving benefits and terminated
employees entitled to benefits but
not yet receiving them $
Current employees '
Accumulated employee contributions
including allocated investment income 44, 832 '
Employer-financed vested
Employer-financed nonvested 105,959
Total pension benefit obligation 150,791 '
Net assets available for benefits
(market value) 224 4 2
Assets in excess of pension benefit obligation 73 691
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,
1996 based on an actuarial valuation as of October 1, 1995.
1
56 '
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
' September 30, 1996
NOTE 7 -VILLAGE EMPLOYEES' PENSION TRUST FUND (Continued)
' CONTRIBUTIONS REQUIRED AND CONTRIBUTIONS MADE (Continued)
Plan Year Ended September 30, 1996
' Actuarially Determined
Requirements Actua l
%of %of
' Covered Covered
Contribution Pa.~oll Contribution Pa.~oll
' Employees $ 29,033 4.8 $ 29,033 4.8
Employer 43,318 7.2 83,035 13.8
' State 19,854 3.3 17,083 2.$
92 205 129 151
~_
' The required contribution calculated consisted of $92,205 (15.3% 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.
57
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1996
NOTE 7 -VILLAGE EMPLOYEES' PENSION TRUST FUND (Continued)
TREND INFORMATION (Continued)
Fiscal Fiscal Fiscal Fiscal
Year Ended Year Ended Year Ended Year Ended
1993 1994 1995 1996
Percentage of pension
benefit obligation funded
by available assets 115.9 130.7 148.9 (a)
Assets in excess of pension
benefit obligation as a
percentage of annual
covered payroll 2.5 5.1 13.9 (a)
Village's contributions to
the pension plan as a
percentage of annual
covered payroll 17.5 11.8 14.4 13.8
(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 8 -DEFERRED _COMPENSATION PLAN
The Village offers its employees a deferred compensation plan created in accordance with
Internal Revenue Code Section 457. The plan, available to all Village employees, permits them
to defer a portion of their salary until future years. The deferred compensation is not available
to employees until termination, retirement, death, or unforeseeable emergency:
58
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1996
NOTE 8 -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 managed by the plan's trustee under one of six investment options, or a
combination thereof. The funds are invested at the discretion of individual plan participants.
NOTE 9 -COMPENSATED ANNUAL LEAVE AND SICK PAY
As of September 30, 1996, the total liability for compensated absences was $400,347. 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, 1996, the long-term
amount was $324,220. The liability recorded by the Enterprise Fund was $76,127.
NOTE 10 -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 f nancial statements. There were no settled claims which
exceeded insurance coverage during the past three fiscal years.
59
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1996
NOTE 10 -RISK MANAGE?1iENT (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
develop in the trust fund after excess insurance recoveries, the Village shall thereafter be
responsible for its individual costs.
NOTE 11 -LEASE COMIVIITMENTS
During the fiscal year, the Village had the following capital lease agreements:
General Fund
Fire Truck
Annual Payment: $56,658
10 year term
Expires October, 2003
Principal amount outstanding at
9/30/96 - $354,519
Capitalized cost - $466,140
(General Fixed Asset Account Group)
911 system
Annual payment: $5,093
5 year term
Expires December 1999
Principal outstanding at 9/30/96 - $15,677
Capitalized cost - $20,452
(General Fixed Asset Account Group)
60
Enterprise Fund
Computer system
Monthly payment: $692
60 month term
Expires October, 1996
Principal amount outstanding
at 9/30/96 - $797
i~
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1996
NOTE 11 -LEASE CO TS (Continued)
Capitalized costs and accumulated amortization of the enterprise fund leases are as follows:
Cost $ 81,349
Accumulated amortization 73,126
8 223
Amortization expense of $16,270 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, 1996:
Fiscal Year General
Ending Long-Term Enterprise
September 30, Debt Fund
1997 $ 61,751 $ 803
1998 61,751
1999 61,751
2000 61,751
2001 56,658
Thereafter 16 992
Total minimum lease payments 473,654 803
Less: amount representing
interest 103 45 _~
Present value of future
minimum lease payments 370 196 797
61
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1996
NOTE 12 -LONGTERM AGREEMENT TO PURCHASE WATER
On July 15, 1976, the Village entered into an agreement with Tri-Southern Utilities Company,
Inc. (the agreement subsequently assumed by the Town of Jupiter) to purchase water for the
Village's water system for a period of 30 years. Rates for water service are based on wholesale
rates. The Village is billed monthly based upon a 1,500,000 gallons per day contracted
minimum.
NOTE 13 -LONG-TERM 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 dollaz. 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.
NOTE 14 -CONTRACTED SERVICES -FIRE PROTECTION/EMERGENCY
MEDICAL SERVICE
Effective October 1, 1993, the Village 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, 1996, fire protection fees received from Jupiter Inlet Colony was
$159,879. Since January 1, 1995, the Village has maintained an Emergency Medical Service
(EMS} program within the Fire Rescue Department. During the fiscal year September 30, 1996,
North County Ambulance provided transportation services only. On November 14, 1996 the
Village Council determined that there was a need for the Village to provide ambulance
transportation. Resolution 2-96/97 was enacted which approved the lease/purchase of two
ambulances. The lease/purchase cost including interest is $224,656. The ambulances are to be
financed over seven years with an interest rate of 5.8%. The first installment is due October 15,
1997 in the amount of $32,093.
62
1
' VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1996
' NOTE 15 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
t 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).
- - EBT
NOTE 16 LONG TERM D
' General Long-Term Debt
Changes in general long-term debt of the Village for the year ended September 30, 1996 are
t summarized as follows:
Capital Improvement Joint
Compensated Lease Note Revenue Venture
Absences Obli atg ions Payable Bonds Obli ag tion Total
General long-term
debt at October 1,
1995 $356,977 $388,600 $12,416 $1,310,000 $ $2,067,993
' Additions:
Capital lease 20,452 20,452
Obligation under
' Joint Venture
Agreement 8,000 8,000
Deletions:
' Repayments of debt 38,856 3,697 60,000 102,553
Decrease in accrual
for compensated
absences 32.757 32.757
General long-term
t debt at September 30,
1996 324 220 370 196 8 719 1 250 ~~ 1 961 135
' 63
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1996
NOTE 16 -LONGTERM DEBT (Continued)
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, 1996, $1,250,000 of this issue
were outstanding. Any remaining revenues after principal and interest may be used for any
lawful purpose.
Annual requirements to amortize this debt are as follows:
Coupon
October 1. Rate Principal Interest Payments
1997 6.15 % $ 65,000 $ 76,875 $ 141,875
1998 6.15 % 70,000 72, 878 142, 878
1999 6.15 % 75,000 68,573 143,573
2000 6.15 % 80,000 63,960 143,960
2001 6.15 % 80,000 59,040 139,040
Thereafter 880,000 259,838 1.139,838
Totals 1 250 000 60~ 1. 164 1 851 164
Water Fund
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, 1996 the balance of note was $8,405.
64
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
' September 30, 1996
' NOTE 16 -LONGTERM DEBT (Continued)
' Total Long-Term Debt
The annual requirements to amortize all outstanding debt including interest payments of
$706,144 as of September 30, 1996 are as follows:
Fiscal Capital Joint
t Year Ending Compensated Lease Notes Venture Improvement
September 30 Absences Obli atg ions Paxable Obli atg ions Revenue Total
1997 $ $ 62,554 $ 8,949 $8,000 $ 141,875 $ 221,378
1998 61,751 8,949 142,878 213,578
I 1999
2000 61,751
61,751 746 143,573
143,960 206,070
205,711
2001 56,658 139,040 195,698
' Thereafter
220
324
V
i 169, 992 1,139, 838 1, 309, 830
324
220
,
ar
ous ,
324 220 474 457 18 644 8000 1 851 164 2 676 4$5
' Annual maturities of long-term compensated absences cannot be reasonably determined.
' NOTE 17 - 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,
1996, $3,530,000 of bonds outstanding are considered defeased.
' 65
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1996
NOTE 1 S - INTERFUND RECEIVABLES AND PAYABLES
Individual fund interfund receivables and payables at September 30, 1996 are as follows:
Interfund
Fund Receivables
General Fund $ 85,843
Special Revenue Fund 16, 843
Capital Improvement Fund 37,500
Enterprise Fund 4,410
144 596 144 596
Interfund
Payables
$ 4,410
140.186
NOTE 19 - INTERFUl~~ ADMIl~'ISTRATIVE FEE
During the year ended September 30, 1996, the Enterprise Fund remitted $145,760 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.
NOTE 20 -CONTRIBUTED CAPITAL -ENTERPRISE FUND
The changes in contributed capital consists of the following:
Contributed capital
at October 1, 1995
Plus: contributions
Contributed capital at
September 30, 1996
Capital
Developer Improvement
Contributions Char eg s Total
$1,089,543
$2,440,288
96.630
$3,529,831
41,350
137,980
1 130 893 2 536 918 3 667 811
66
' VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
' September 30, 1996
NOTE 21 -RESIDUAL EOUITY TRANSFER
' In 1995 fiscal year the Village Council authorized an advance. of $361,110 from the Enterprise
Fund to the Capital Improvement Fund. During the 1996 fiscal year the Council authorized
forgiveness of such debt. Forgiveness of this debt resulted in a residual equity transfer from the
Enterprise Fund to the Capital Improvement Fund.
' 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. Effective
February 1, 1996 the Village increased the water charge to its customers to reflect the possible
increase in costs. If the Village prevails, these funds would be refunded. Accordingly, the
' amounts collected during the fiscal year of $419,757 were deferred.
In September of 1995 the Village pursued a quick taking and gained title to an easement needed
for the installation of a potable water well site. The Village deposited a good faith compensation
of $16,500. The property owners' appraiser estimated compensation of this property at
$122,000 plus attorney fees and costs. Therefore, the property owners are contesting the
Village's good faith deposit. Outside council for the Village advised that it is possible that the
Village may incur costs ranging from $50,000 to $185,000, if the Village loses the case.
However, the eventual outcome is not determinable at this time.
1\'OTE 23 - JOII~`T VENTURE
' The Village, in conjunction with six other municipalities, organized a consortium to provide
mutual fire and emergency aid. The consortium is known as The Northern Area Mutual Aid
Consortium (NAMAC). During the 1996 fiscal year each of the municipalities contributed
$8,000 and agreed to contribute an additional $8,000 in the fiscal year 1997. Accordingly,
$8,000 has been recorded in the Long-Term Debt Account Group as the Village's amount
' obligated under joint venture. The consortium did not conduct any other activity in the fiscal
year 1996 other than to collect the contributions. The joint venture does not issue a stand alone
' financial report.
' 67
1
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1996
NOTE 24 -SUBSEQUENT EVENTS
On December 6, 1996, the Village entered into a three year lease agreement to rent commercial
office for the administrative, finance and water services staff. The base annual rent is $47,132
adjusted annually for the Consumer Price Index. At the end of the three year lease the Village
has the option to renew for three additional one year terms. Upon renewal the lease rent may
change.
On July 25, 1996 the Village Council authorized the Village management to enter into a bond
issuance of $7,650,000 to fund the Reverse Osmosis Water System. As of January 20, 1997,
the Village has not completed the required contracts to provide for a bond issuance. The Village
is in the permitting phase for the project. As soon as this phase is completed, the Village will
continue with bond issuance. Village management anticipates that the issuance will take place
by October 1997.
On December 30, 1996 the Village filed for a petition concerning the installation of sewer
facilities on Bermuda Terrace by The Loxahatchee River Environmental Control District
(ECON). The Village alleges that the installation of the sewers will adversely impact Tequesta's
groundwater resources. ECON along with the Palm Beach County Public Health Unit have filed
a motion to dismiss the petition. As of January 20, 1997 a decision regarding the petition has
not been addressed.
68
1
1
SUPPLEMENTAL INFORMATION
GENERAL FUND '
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
VILLAGE OF TEQUESTA, FLORIDA
general F_ and
Schedule of Revenues~~- Budget and Actual
For the Fiscal Year Ended September 30, 1996
Taxes
Ad valorem taxes
Current ad valorem taxes
Delinquent ad valorem taxes
Total ad valorem
Public services taxes
Electric
Telephone
Water
Propane
Total public service taxes
Local option gas tax
Total taxes
Licenses and permits
'~ Building permits
~, Other licenses and permits
Total licenses and permits
Variance -
Favorable
Budget Actual (Unfavorable)
$2,144,095 $2,158,420 $ 14,32
2.600 2, 394 ~)
2.146.695 2,160.814 14,119
339,000 352,002 13,002
72,000 79,172 7,172
78,750 93,197 14,447
13.500 16.771 3.271
503 25 541.142 37,892
150.000 1 461 14,461
2 79 94 2, 866.417 66.472
112,000 144,990 32,990
12,400 22.669 10,269
124 4 167 59 43,259
(Continued)
69
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Revenues -Budget and Actual
For the Fiscal Year Ended September 30, 1996
(Continued)
Budget Actual
Intergovernmental
Cigarette tax $ 14,000 $ 13,493
State revenue sharing 129,200 129,219
Alcoholic beverage licenses 7,000 4,729
One-half cent sales tax 260,000 275,890
911 maintenance reimbursement 3,340 9,863
Countywide registrations 10,000 21,505
Grants 64,105 57,702
Other 1.800 5..397
Total intergovernmental 489.445 517,798
Charges for services
Zoning fees 15,000 23,325
-Map sales 250 627
Certification, copying, record search 2,000 2,493
Building inspection 12,000 8,863
Site plan review fees 7,500
Fire rescue services 159,880 159,879
Fire inspection 12,000 7,160
Fire plan review service 4,500 5,237
Municipal police academy 500 1,260
Extra duty -contracted services 3,500 4 4
Total charges for services 217,130 213.283
Fines and forfeits
Court fines 38,000 71,364
Parking tickets 1,000 4,550
Code enforcement 2,000 525
Total fines and forfeits 41 76 4 9
70
Variance -
Favorable
(Unfavorable)
$ (507) '
19
(2,271) '
15,890
6,523 '
11, 505
(6,403)
3.597 '
28.353
8,325
377 '
493
(3,137)
(7,500) '
(1)
(4, 840)
737 ,
760
939
~, 847 '
33,364 ,
3,550
~~
35,439
(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, 1996
(Continued)
Variance -
Favorable
Budget Actual (Unfavorable)
Interest
Tax collector $ 5,000 $ 6,362 $ 1,362
Investments 66.000 77.724 11.724
Total interest 71.000 84,086 13.086
Impact fees
Law enforcement 3,785 3,785
Fire rescue 3,791 3,791
Parks and recreation 1,378 1,378
Total impact fees 8,954 8,954
Miscellaneous
Other 10,000 5,613 (4,387)
Total miscellaneous 10,000 5,613 (4,387)
Intragovernmental services
Administrative management -water fund 145,760 145,760
Total intragovernmental services 145.760 145 7
Total revenues 3 898 68 4 086 009 187 329
71
'
VILLAG E OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures -Budget and Actual ,
For the Fiscal Year Ended September 30, 1996
'
Variance -
Budget
Actual Favorable
(Unfavorable)
'
General government ,
Legislative
Travel and per diem $ 13,915 $ 13,912 $ 3 ,
Other charges 1,165 1,160 5
Books, publications and dues 5,050 5,049 1
Total legislative 20.130 20,121 9
Executive ,
Salaries 140,565 141,233 (668)
F.I.C.A.
11,650
11,700
(50) '
Retirement 34,070 31,681 2,389
Life and health insurance 26,300 26,298 2
Worker's compensation insurance
950
927
23 ,
Deferred compensation insurance 3,820 3,820
Professional services 15,480 14,785 695
Contractual services 8,285 8,281 4
Travel and per diem 8,000 7,977 23
Office machines maintenance 925 904 21 '
Office supplies 1,740 1,102 638
Rentals and leases 1,600 1,512 88
Books, publications, dues 1,465 1,462 3 '
Other charges 1.575 970 605
Total executive 256.425 252,652 3,773 '
(Continued) ,
72 ,
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures -Budget and Actual
For the Fiscal Year Ended September 30, 1996
(Continued)
Variance -
Favorable
Budget Actual (ITnfavorablel
General government (continued)
Financial and administrative
Salaries $ 126,870 $ 126,038 $ 832
F.I.C.A. 9,505 9,537 (32)
Retirement 22, 815 21,608 1,207
Life and health insurance 13,565 13,412 153
Worker's compensation insurance 825 751 74
Professional services 1,575 1,270 -- 305
Accounting and auditing 20,000 18,756 1,244
Travel and per diem 1,500 1,011 489
Other charges 2,025 1,108 917
Office supplies 4,500 2,428 2,072
Books, publications, dues 550 527 23
Office machines maintenance 6,650 6,640 10
Total financial and administrative 210.380 203 8 7,294
Legal counsel
Legal services 1 1 151,032 468
Total legal counsel 1500 151.032 468
Planning and zoning
Professional services 55,350 53,970 1,380
Other charges 27.200 6.311 20.889
Total planning and zoning 82,550 60.281 22,269
(Continued)
73
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures -Budget and Actual
For the Fiscal Year Ended September 30, 1996
(Continued)
General government (continued)
Other general government
Life and health insurance
Other personal services
Professional services
Travel and per diem
Communication services
Transportation/postage
Utility services
Fire hydrant rental fees
Rentals and Ieases
Insurance/claims and judgments
Village Hall maintenance
Printing and binding
Promotional activities
Other charges
Office supplies
Books, publications, dues
Budget Actual
$ 3,495 $ 3,118
10,660 9,874
12,895 12,045
750 746
5,600 5,555
7,800 7,683
6,080 5,903
13,900 13,900
4,900 4,775
28,000 28,149
10,400 10,380
500 409
14,980 11,577
7,750 6,676
6,200 6,187
1 22 1,212
Total other general government
Total general government
135 1 0 128,189
58 6.115 15 1
74
1
Variance - ,
Favorable
(Unfavorable2 '
$ 377 '
786
850
4
45
117 '
177
125 ,
(149)
20 t
91
3,403
1,074 '
1g
6.941 '
40,754 ,
(Continued)
i
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures -Budget and Actual
For the Fiscal Year Ended September 30, 1996
(Continued)
Variance -
Favorable
Budget Actual (Unfavorable)
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
Total police department
$ 848,296 $ 843,547 $ 4,749
34,985 35,071 (86)
76,750 76,021 729
222,660 201,803 20,857
105,879 101,804 4,075
59,180 58,719 461
4,545 4,105 440
6,075 5,813 262
195 195
25,680 25,518 162
30,090 29,274 816
1, 200 997 203
15,785 12,132 3,653
11,730 10,683 1,047
3,215 2,824 391
41,660 40,438 1,222
2.255 1.987 268
1 49 1 1.450.931 39.249
(Continued)
75
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures -Budget and Actual
For the Fiscal Year Ended September 30, 1996
(Continued)
Budget Actual
Public safety (continued)
Protective inspections
Salaries
F.I.C.A.
Retirement
Life and health insurance
Worker's compensation insurance
Contractor services
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
$ 115,295 $ 104,085
8,120 8,134
19,595 18,518
10,385 10,258
3,025 2,967
26,075 19,375
5,300 3,828
2,000 1,585
900 867
2,000 748
500 476
2,225 510
225 204
1,650 1,541
1,750 345
700 574
Total protective inspections
Emergency and disaster relief
Civil preparedness
Total emergency and disaster relief
199.745 174,015
2.240 954
2.240 954
76
1
1
Variance -
Favorable
~iJnfavorable] '
1
11 210 '
$ ,
(14) t
1,077
127
58
6,700
1,472
415 '
33
1,252
24 '
1,715
21
109 '
1,405
126
25.730 '
1
1,286
~~ '
(Continued) ,
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures -Budget and Actual
For the Fiscal Year Ended September 30, 1996
(Continued)
Fire and rescue services
Salaries
Overtime
F.LC.A.
Retirement
Life and health insurance
Volunteer fire and rescue
Travel and per diem
Communication services
Utility services
Repairs and maintenance
Insurance
Printing
Other charges
Office supplies
Operating supplies
Books, publications, dues
Total fire and rescue services
Total public safety
Variance -
Favorable
Budget Actual LCTnfavorable)
$ 556,390 $ 558,325 $ (1,935)
36,700 36,730 (30)
43,870 43,803 67
86,100 82,685 3,415
135,855 126,742 9,113
14,600 14,593 7
2,605 2,600 5
4,095 4,003 92
2,615 2,592 23
22,280 21, 661 619
10,710 10,668 42
650 640 10
14,090 13,872 218
1,110 _1,065 45
40,270 28,492 11,778
5.020 4,003 1 17
976 96 952,474 24,486
2 669 12 2.578,374 90.751
(Continued)
77
VII,LAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures -Budget and Actual
For the Fiscal Year Ended September 30, 1996
(Continued)
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
Budget Actual
Variance - ,
Favorable
~Unfavorablel ,
1
'
$ 176130 $ 176,524 $ (394)
13,135 13,175 (40)
33,175 26,357 6,818 '
25,450 26,708 (1,258)
8,840
60,150 8,819
64,434 21
(4,284)
'
66,000 61,006 4,994
3,625 3,623. 2
1,500
1,057
443 ,
1,350 1,216 134
56,700 56,683 17
9,100 9,024 76
50,900 49,324 1,576
1,000 803 197
6,800
6,524
276 t
7,550 7,527 23
300 160 140 ,
521,705 512 9 8,741
1
(Continued)
78 '
1
1
1
1
1
1
1
1
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1
1
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1
1
1
1
1
1
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures -Budget and Actual
For the Fiscal Year Ended September 30, 1996
(Continued)
Variance -
Favorable
Bud a Actual (Unfavorable)
Human services
Health -mosquito control
Salaries $ 800 $ $ 800
Repairs and maintenance 200 200
Operating supplies 750 750
Personnel training 1.100 1.033 --~7_
Total human services 2.850 1 03 1.817
Culture/Recreation
Parks and recreation
Salaries 57,730 57,581 149
F.I.C.A. 4,595 4,506 89
Retirement 11,350 10,730 620
Life and health insurance 3,675 3,661 14
Worker's compensation insurance 2,435 2,404 31
Contractual services 17,225 17,118 107
Travel and per diem 1,300 1,251 49
Communication services 305 281 24
Utility services 17,250 17,245 5
Insurance 2,350 2,342 8
Repairs and maintenance 25,725 25,604 121
Other charges 1,800 1,782 18
Office supplies 100 31 69
(Continued)
79
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures -Budget and Actual
For the Fiscal Year Ended September 30, 1996
(Continued)
Variance -
Favorable
Budget Actual (Unfavorable)
CulturelRecreation (Continued)
Parks and recreation (continued)
Operating supplies $ 2,100 $ 1,761 $ 339
Books, publications, dues 150 105 45
Aid to community organizations 9,100 7,725 1,375
Aid to government organizations 9,500 7, 639 _ 1, 861
Total culture/recreation 166,690 161,766 4,92
Capital Outlay
General government -executive 6,000 5,963 37
General government -other 12,165 11,645 520
Police 64, 700 64, 675 25
Protective inspections 2,000 479 1,521
Fire rescue 28,105 19,088 9,017
Transportation 34,650 32,270 2,380
Parks and recreation 42,145 43 , 635 ____~ 1,490)
189.765 177,755 12,010
Debt Service
Principal retirement 40,590 40,556 34
Interest 25,770 25.750 20
Total debt service 66,360 66.306 5~3
Total expenditures 4 472 610 4 313 559 159 051
80
VILLAGE OF TEQUESTA, FLORIDA
Special Revenue Fund
Schedule of Revenues -Budget and Actual
For the Fiscal Year Ended September 30, 1996
Budget Actual
Taxes
Franchise fees 309 565 317 590
Total taxes 309.565 317 59
Licenses and permits
Professional and occupational licenses 75 78.791
Total licenses and permits 75.000 78.791
Miscellaneous revenues
Interest income 2.OQ0
Total miscellaneous revenues 2.000
Total revenues 386 565 396 381
81
1
1
1
Variance '
Favorable
~LTnfavorable) '
8 025 ,
8,025 '
3.791
3.791 '
(2.000)
(2.000) ,
9 816 '
1
VILLAGE OF TEQUESTA, FLORIDA
Capital Projects Funds -
Combining Balance Sheet
September 30, 1996
Capital Bond
Improvement Construction
Fund Fund Total
Assets
Cash and cash equivalents $250,503 $ 29,154 $79,657
Investments 198,171 198,171
Due from other funds 37,500 37,500
Grants receivable 66.384 66y384
Total assets 552 558 29 154 581 712
Liabilities, equity and other credits
Accounts payable $ 37,546 $ 8,029 $ 45,575
Contracts payable 16.046 16.046
Total liabilities 53.592 8.029 61.621
Fund balances
Reserved for:
Capital improvements 21,125 21,125
Encumbrances 101,872 1,250 103,122
Unreserved
Road project 52,350 52,350
Undesignated 344.744 (1.250) 43 494
Total equity and other credits 498,966 21,125 520.091
Total liabilities, equity and
other credits 552 558 29 154 581 712
82
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
VILLAGE OF TEQUESTA, FLORIDA
Combining Statement of Revenues,
Expenditures and Changes in Fund Balance
For the Fiscal Year Ended
September 30, 1996
Revenues
Intergovernmental grant
Interest
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
Residual equity transfer in
Fund balances at end of year
Capital Bond
Improvement Construction
Fund Fund Total
$ 382,679 $ 50,000 $ 432,679
17.707 17,538 35.245
4 386 7 538 467,924
665523 490,653 1,156.176
5 523 490 65 1.156.176
268 5.137) 428 3.115) (688.252)
334 334.000
34 ~4 ~
68,863 (423,115) (354,252)
68,993 444,240 513,233
361,110 361.110
498 966 21 125 52 091
83
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, 1996
Revenues
Intergovernmental grant
Interest
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
Residual equity transfer in
Fund balances at end of year
Capital Improvement Fund
Budget Actual Variance
$ 380,680 $ 382,679 $ 1,999
12,000 17.707 5.707
392.680 400.386 7,706
726 69 665 52 61,172
726.665 665.523 61.172
33S 4,415) 26,E 5.137) 68.878
334 15 334,000 X15)
334,015 334,000 X15)
68,863 68 863
68,993
361.110
498 966
84
1
1
1
1
1
1
Bond Construction Fund
Budget Actual Variance
$ 50,000 $ 50,000 $
5,000 17,538 12 8
55,000 67,538 12,538
468, 495 490,653 2( 2.158)
468, 495 490 65 2( 2,158)
(413.495) 42 11 (9,620)
Total s
Budget Actual Variance
$ 430,680 $ 432,679 $ 1,999
17.000 35.245 18.245
447,680 467,924 20.244
1, 195,190 1, 156.176 39.014
1. 195,190 1 ,156.176 39.014
(747,510) (688.252) 59,258
334,015 334.000 (15)
334.015 334.000 (15)
$ (413,495) (423,115) 9 620
444,240
413 495 (354,252)
513,233
1 it
520 091
9 24
21 125
85
1
' VII.LAGE OF TEQUESTA, FLORIDA
Enterpnse Fund
Schedule of Operating Expenses -Budget and Actual
' For the Fiscal Year Ended September 30, 1996
' Variance -
Favorable
Budget Actual (Unfavorable
' Purchased services
Purchased water
$ 722,625
$ 667,950
$ 54,675
Refuse and recycling service 274.805 263,124 11 81
' Total purchased services 997,430 931,074 66.356
' Personal services
Salaries
439,130
18
990
446,522
313
8
(7,39
67
10
Overtime
F.I.C.A. ,
34,415 ,
33,028 ,
1,387
Retirement 86, i50 78,401 7,749
Life and health insurance 81,450 73,160 8,290
t Worker's compensation insurance
i
i
E
l 24,800
1
000 23,453
792 1,347
208
on program
t
mp
oyee recogn
Employee assistance programs ,
1 15 594 556
' Total personal services 687,085 664.263 22,822
' Contractual services
Insurance
47,875
43,175
4,700
Personnel services
Communication services 2,000
7,700 105
7,124 1,895
576
t Rentals and leases
Computer program services 4,460
5,000
96
500 4,172
4,520
404
96 288
480
96
Legal , ,
Engineering
Accounting and auditing 31,200
25,200 33,951
19,577 (2,751)
5,623
' Other charges 18,950 13,513 5,437
Licenses and fees 7,500 6,649 851
' Administrative management
Personnel training and travel 145,760
7,000 145,760
5.314
1,686
Total contractual services 399,145 380.264 18.881
' Suppplies
Off ce supplies
8, 800
40
685
8, 648
992
38
152
1
693
Chemicals , , ,
supplies
Other operating 16,495 13,393 3,102
' ,
Books, publications and dues 2.000 1,983 17
Total supplies 67.980 6 ~ 1 4 9
' Heat, light and power lOb 8 100,225 6.575
Repairs and maintenance 214,035 177,702 36,333
Depreciation 398.065 39~ 8'065)
Total operating expenses 2 472 475 2 714 609 242 134
' 86
VILLAGE OF TEQUESTA, FLORIDA
Enterprise Fund
Comparative Summary of Operations
For the Fiscal Years Ended September 30, 1996 and 1995
1996 1995
Operating revenues
Water system $3,070,698 $2,738,893
Refuse and recycling 263,750 244,550
Charges for services 3.334.448 2,983,443
Operating expenses
Purchased services 931,074 922,436
Personal services 664,263 605,878
Contractual services 380,264 379,276
Supplies 63,016 72,120
Heat, light and power 100,225 98,973
Repairs and maintenance 177,702 201,707
Depreciation 398,065 388,636
Total operating expenses 2,714,609 2,669,026
Operating income 619.839 314,417
Nonoperating revenues (expenses)
Interest income 213,224 209,367
Interest expense and fiscal charges (29,945) (20,380)
Loss on disposal of equipment (4,724)
-Community aid donation (12,500) 10
Total nonoperating revenues 170,779 174,263
Income before operating transfer 790,618 488,680
Operating transfers (out) X169,000) (165,000)
Net income 621 6I8 323 680
87
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
VILLAGE OF TEQUESTA, FLORIDA
Combining Balance Sheet -Fiduciary Fund Types
September 30, 1996
Assets
Cash and cash equivalents
Investments
Total assets
Liabilities and
Fund Balances
Liabilities
Deferred compensation
payable
Total liabilities
Fund Balances
Reserved for:
Law enforcement
Employees' retirement plan
Total fund balances
Total liabilities and
fund balances
Expendable Pension
Trust Trust Agency
Fund Fund Fund
$ 4,875 $ 1,276
370.244
4 875 371 480
4,875
371,480
4.875 371.480
4 875 371 480
88
Totals
$ $ 6,151
406,036 776,240
406 036 782.391
406 36 406 036
406.036 44b,036
4,875
371 48
376.355
40_____6_ 036 782 39l
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
VILLAGE OF TEQUESTA, FLORIDA
Statement of Changes in Assets and Liabilities -
Agency Fund
For the Fiscal Year Ended September 30, 1996
Deferred Balance Balance
Compensation October 1, September 30,
Fund 1995 Additions Deductions 1996
Assets
Investments 326 427 126 658 47 049 406 036
Liabilities
Deferred compensation
payable 326 427 126 658 47 049 406 036
89
VILLAGE OF TEQUESTA, FLORIDA
Schedule of General Fixed Assets by Source
September 30, 1996
General fixed assets
Land $ 397,653
Buildings 948,560
Improvements other than buildings 258,778
Equipment 1,707.815
Total general fixed assets 3 312 806
Investment in general fixed assets
General Fund revenue $3.312, 806
Total investment in general fixed assets 3 312 806
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, 1996
Buildings
and
Total Land Improvements ui ment
$1,394,762 $347,925 $ 906,562 $ 140,275
1,416,899 94,750 1,322,149
187,496 7,713 179,783
6,645 6,645
192,360 49.728 83 66 58.963
3,198,162 397,653 1,092,694 1,707,815
114,644 114,644
3 312 806 397 653 1 207 33 1 707 815
91
VILLAGE OF TEQUESTA, FLORIDA
Schedule of Changes in General Fixed Assets
By Function
For the Year Ended September 30, 1996
General General
Fixed Assets Fixed Assets
October 1, September 30,
1995 Additions Deletions 1996
General government $1,298,465 $ 739,936 $643,639 $1,394,762
Public safety 1,345,110 86,583 14,794 1,416,899
Transportation 171,001 16,495 187,496
Human services 6,020 625 6,645
Culture/recreation 189.965 2.395 192 3
3,010,561 846,034 658,433 3,198,162
Prior to allocation by
function 114,644 114,644
Total general fixed
assets 3 125 205 846 034 658 433 3 312 806
92
VILLAGE OF TEQUESTA, FLORIDA
Required Supplemental Information
Village Employees' Pension Trust Fund
Following is an analysis of funding progress for the Village Employees' Pension Trust Fund 1
(VEPF) 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 VEPF is a listing of revenues by source and expenses by type for the ten ,
years (where information is available).
93 '
1
1
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1
1
1
1
1
1
1
1
VILLAGE OF TEQUESTA, FLORIDA
Village Employees' Pension Trust Fund
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 bli ation 1~,)/(2) Obli ag tion Payroll (4l/(5~.
~)
1993 $ 9,543 $ 8,236 115.9 $ 1,307 $ 52,129 2.5%
1994 87,266 66,791 130.7 20,475 398,905 5.1
1995 224,482 150,791 148.9 73,691 528,895 13.9%
1996 371,480 (c) (c) (c) 601,643 (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, 1995 is the latest available actuarial report.
94
VILLAGE OF TEQUESTA, FLORIDA
Village Employees' Pension Trust Fund
Revenues by Source and Expenses by Type
Fiscal Year
1993
1994
1995
1996
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Revenues by Source
Employee Employer
Contri- Contri-
butions butions
$ 426 $ 9,117
19,805 46,950
26,445 76,161
29,033 83,035
State
Contri-
butions Earnings
$ $
8,801
14,959 29,810
17,083 36,091
Transfers
In Total
$ $ 9,543
7,565 83,121
147,375
165,242
Employer
Contributions
as a
Percentage
of Covered
Payroll
17.5%
11.8
14.4
13.8
Expenses by Type
Administrative
Fiscal Year Benefits Expenses Refunds To
1993 $ $ $ $
1994 4,918 480 5,398
1995 2,997 7,162 10,159
1996 11,144 7,102 18,246
Contributions were made in accordance with actuarially determined contribution requirements.
95
1
1
1
VILLAGE OF TEQUESTA, FLORIDA
Schedule of Insurance
September 30, 1996
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
VILLAGE OF TEQUESTA, FLORIDA
Schedule of Federal Financial Assistance
For the Fiscal Year Ended September 30, 1996
Federal Grantor/
Pass-Through Grantor/Program Title
Nonma~or Programs
Federal Emergency Management Agency
Pass-through State of Florida
Department of Community Affairs
Emergency Management Division
Disaster Relief Funding
Federal
CFDA
Number
M5071
Agreement #
83.516 95-RM-7A-10-60-02-014
Pass-Through
Grantor's Number
Total Federal Emergency Management Agency
U.S. Department of Justice
Direct Award
Public Safety and Community Policing
Grant
16.710 95-CF-WX-3396
Total U.S. Department of Justice
Total Federal Financial Assistance
97
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Accrued
Program (Deferred)
or Award Revenue at
Amount October 1, 1995 Receipts ExQenditures
265 695
265,695
265 69
265.695
265 69
265,695
Accrued
(Deferred)
Revenue at
September 30. 1996
28.959 21,220 28 9 9 7 73
2 959 21,220 28959 7.739
294 654 ~ 28b 915 294 654 7 739
98
VILLAGE OF TEQUESTA, FLORIDA
Schedule of State Financial Assistance
For the Fiscal Year Ended September 30, 1996
State Grant
State Grantor/Pass-Through Grantor/Program Title Number
Florida Department of Health and Rehabilitative Services
Direct Award
E. M. S . Matching Grant M5021
Pass-through Palm Beach County Department
of Health and Rehabilitative Services
E.M.S. Matching Grant C9550
Total Department of Health and Rehabilitative Services
Florida Department of Transportation
Highway Beautification Grant
Total Department of Transportation
Florida Department of Community Affairs
Evaluation and Appraisal Report Grant M5029
Total Department of Community Affairs
Total state financial assistance
99
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Accrued Accrued
Program (Deferred) (Deferred)
or Award Revenue at Revenue at
Amount October 1, 1995 Receipts Expenditures September 30, 1996
$ 10,875 $ $ 10,875 $ 10,875 $
3,799 3 7 3 79
14.674 14,674 14,674
66.384 66.384 66,384
66,384 66.384 66,384
14.069 3.518 14,069 10.551
14x069 3.518 14,069 1 551
95 127 ~ 18 192 95 127- 76 935
100
VILLAGE OF TEQUESTA, FLORIDA
General Revenues by Source (Unaudited) (1)
Last Ten Fiscal Years
Licenses
Fiscal Year Ended and
September 30 Taxes Permits
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
1996 3,184,007 246,450
(1) Includes General, Special Revenue, Capital Projects, and Expendable Trust Funds.
(2) Includes intragovernmental services, impact fees and interest income.
Source: Village of Tequesta financial records.
101
i
i
i
i
Charges
for
Intergovernmental Services
$421,385 $ 8,880
568,091 19,562
701,112 32,941
872,494 14,146
513,839 17,442
528,276 27,174
531,696 21,304
423,606 189,691
898,701 241,848
950,477 213,283
Fines and
Forfeits Miscellaneous(2) To
$51,126 $123,140 $2,609,005
53,034 166,547 3,122,001
51,555 338,392 3,543,787
37,903 304,227 3,90,5,327
38,035 241,371 3,509,958
31,647 215,887 3,670,484
46,037 202,040 3,655,702
48,885 223,494 3,917,396
43,555 308,037 4,769,986
78,578 279,658 4,952,453
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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) TransQortation
1987 $401,854 $1,328,602 $ 306,292 i
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 2,662,075 859,763
1995 828,386 2,546,227 586,534
1996 891,574 2,662,616
1,045,018 '
t
(1) Includes General, Special Revenue, Debt Service, Capital Projects and Expendable Trust Funds.
198 1993
h
h
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(2) year
roug
t
Includes Fire/Emergency Contract with Palm Beach County beginning year
Tequesta began its own department beginning in year 1994.
,
(3) Refuse/Recycling Service reported in Enterprise Fund beginning year 1991.
Source: Village of Tequesta financial records.
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Culture
Physical Human and Debt
Environment(3) ervices Recreation Service Total
$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
1,033 803,188 206,861 5,610,290
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VII,LAGE 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)_ ~1) llected Taxes Tax Lew
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
1996 2,166,3 85 2,158,420 99.6 7,965 .4
(1) Includes discounts taken by property taxpayers.
Source: Palm Beach County Tax Collector's office.
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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
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
1996 337,376,976 424,956,672
Source: Palm Beach County Property Appraiser's office.
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Personal Property Total Ratio
Taxable Just Taxable Just Taxable Value
Value Value Value Value To Just Value
$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%
1b,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%
16,264,236 18,268,307 353,644,212 443,224,979 80%
107
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 Coun Board Library District
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
1996 6.3425 4.5191 9.7970 .4838 .5470
108
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Florida
Naviga-
Jupiter tional Children's County
Inlet Inland Services Health Care
District District Council District Total
.2115 18.6462
.1979 .0670 .0923 20.4569
.1920 .0395 .1537 21.1151
.1772 .0370 .1929 1.2500 22.8673
.1434 .0550 .2238 1.2500 22.1311
.1325 .0530 .2215 1.4750 23.0034
.1257 .0520 .3039 1.4750 23.0172
.1257 .0510 .3297 1.4750 23.4968
.1257 .0490 .3522 1.4500 23.8499
.1240 .0400 .3730 1.4250 23.6514
109
VILLAGE OF TEQUESTA, FLORIDA
Ratio of Net General Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita (Unaudited)
Last Ten Fiscal Years
Fiscal Year
Ended
September 30 Population*
1987. 4,141
1988 4,448
1989 4,479
1990 4,499
1991 4,508
1992 4,533
1993 4,551
1994 4,~
1995 4,623
1996 4,637
* Source: Palm Beach County Planning Board, University of Florida Estimates,
Federal Census, and Village Building Department Records.
110
Taxable
Value
$269,314,508
274,426,183
305,061,255
354,406,269
362,567,496
356,914,548
344,814,635
343,161,444
344,238,467
353,641,212
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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
$ 760,000 $118, 377 $ 641, 623 .239'0 154.94
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
1,250,000 35,977 1,214,023 .34 261.81
111
VILLAGE OF TEQUESTA, FLORIDA
Computation of Legal Debt Margin
September 30, 1996
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
$1,250,000
35,977
112
$353,644.212
$ 35,364,421
1,214,023
$ 34,150.398
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VILLAGE OF TEQUESTA, FLORIDA
Computation of Direct and Overlapping Debt (Unaudited)
September 30, 1996
Taxing Authority
Village of Tequesta
Palm Beach County
Palm Beach County
School Board
Total
Source: Above Government Entities
Percentage Amount
Applicable Applicable
Net Debt to to
Outstanding Tequesta Te~uesta
$ 1,214,023 100.00% $1,214,023
108,150,000 .62 % 670,530
269.290,000 .62% 1.669,598
$378.654,023 3 554 151
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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 Principal Interes Servi ~1) Expenditures
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
1996 100,556 106,305 246,861 5,610,290 3.7
(1) Includes General, Special Revenue, Capital Projects and Expendable Trust Funds.
114
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
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
1996 3,283,922 2,451,485 832,437
(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 Inter Account ll) Total overa
$ 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
270,000 17,355 (75,325) 212,030 3.92
116
VILLAGE OF TEQUESTA, FLORIDA
Property Value, Construction and Bank Deposits (Unaudited)
Last Ten Fiscal Years
Commercial Residential
Construction (1~ Construction (1) Property Value (3)
Number Number
Fiscal of of Real Personal
Year Units Value Units Value Deposits (2) Property Provertv
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 0 0 11 2,395,128 308,119,520 418,897,038 20,706,881
1993 1 101,700 8 2,083,944 278,165,130 406,420,054 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
1996 3 2,248,278 6 1,127,624 319,213,870 424,956,672 18,268,307
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, 1996
Percentage
1996 of
Assessed Assessed
Taxpavers . T}pe of Business Valuation V ua 'on
County Line Plaza (K-Mart)
(TAMWEST) Shopping Center $ 8,665,925 2.45%
Tequesta Shoppes (Publix)
(Sterling Tequesta/Trails) Shopping Center 5,499,420 1.54
Dorner Properties
(Bank of Palm Beach Undeveloped
& Trust Company) Real Estate 4,443,763 1.25
Tequesta Shoppes, Ltd. (Waterway Village)
(c/o Capital Management Lot A 3,802,061 1.07
Assoc., Inc.)
Barnett Bank (First National
Bank of Jupiter/Tequesta) Banking 2,060,414 .58
Tequesta Country Club Golf/Social Club 2,592,166 .73
Bowen, Smith, Stanley, Inc. Commercial Building A
(Tequesta Motor Cars) Real Estate 1,354,344 .38
Tequesta Fashion Mall
(Edwin J. Nelson) Shopping Center 2,195,074 .62
SHW, Ltd. Real Estate 1,615,701 .46
Professional
Tequesta Financial Center, Ltd. Office Building 1,300.000 .37
33 528 868 9.48%
Source: Palm Beach County Property Appraiser's Office
118
VILLAGE OF TEQUESTA, FLORIDA
Miscellaneous Statistics ([Tnaudited)
September 30, 1996
Date of Incor~ration: 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 - 16
Number of dispatchers - 4
Municipal Water Deyartment_: Number of customers - 4,652
Average daily consumption - 2.85 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
TeleQhone Service: Southern Bell Telephone & Telegraph Company
Building Permits Issued: 875
Recreation and Culture: Number of parks - 4, approximately 52 acres
Number of libraries - 1, branch of Palm Beach County System
Number of volumes - 20,000 - 22,000
Municipal Em~ploxees: -Full-time - 68
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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
y~r ~~ Income (2) A e 2 Schooline (2) Rate 3~
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
1996 4,637 7.5
Sources:
(1) Palm Beach County Planning Board, University of Florida Estimates and Federal Census.
(2) U.S. Department of Commerce, Bureau of the Census. Information only available for years
provided.
(3) Job Service of Florida.
120
H NOWLEN, HOLT & MINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS EVERETT B. NOWLEN hsao-iseal, CPA
EDWARD T HOLT, CPA
WEST PALM BEACH OFFICE WILLIAM B. MINER, CPA
275 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
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTI~~~GLADE,OFLORIDA333oo336
STRUCTURE BASED ON AN AUDIT OF GENERAL PURPOSE OR TELEPHONE (561) 9ss-5612
BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE FAX (561) 996-6248
WITH GOVERNMENT AUDITING STANDARDS
The Honorable Mayor and Village Council
Village of Tequesta, Florida
We have audited the general purpose financial statements of the Village of Tequesta, Florida,
as of and for the year ended September 30, 1996, and have issued our report thereon dated
January 20, 1997.
We conducted our audit in accordance with generally accepted auditing standards and
Government Auditing Standards, issued by the Comptroller General of the United States and the
provisions of Office of Management and Budget Circular A-128, "Audits of State and Local
Governments". Those standards and OMB Circular A-128 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.
Because of inherent limitations in any internal control structure, errors or irregularities may
nevertheless occur and not be detected. Also, projection of any evaluation of the structure to
future periods is subject to the risk that procedures may become inadequate because of changes
in conditions or that the effectiveness of the design and operation of policies and procedures may
deteriorate.
121
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AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • ACCOUNTING FIRMS ASSOCIATED INC. ,
1
1
In planning and performing our audit of the general purpose financial statements of the Village
of Tequesta, Florida for the year ended September 30, 1996, 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.
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.
t Segregation of Dutie
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.
' Adiusting Journal Entries
' The Village's current system for recording and documenting journal entries does
not provide for an adequate audit trail. All entries need to be documented and
recorded the same manner for all funds and transactions.
Cash on Hand and Timely Deposits
1
Money received for building permits was not always being deposited timely.
Timely depositing of funds decreases the possibility of loss or theft.
Use of Purchase Orders
We noted instances where invoices are paid with no purchase order (P.O.), in
excess of the approved P.O., or the P.O. was prepared after the Village had
received the goods and services. Proper use of a purchase order system ensures
that purchases of goods and services are authorized prior to purchase and amounts
are not spent in excess of what was authorized.
122
i
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one or more
on o
A material weakness is a reportable condition in which the design or operat
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 weakness.
Our recommendations regarding the above conditions and other matters involving the internal
control structure and its operation have been reported to the management of the Village of
Tequesta, Florida and are contained in the accompanying Management Letter. '
This report is intended for the information of the management, and Village Council. However,
this report is a matter of public record and its distribution is not limited. ,
3anuary 20, 1997
123
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N ~ NOWLEN, HOLT & MINER, P.A.
CERTIFI$D 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. HENDAIX, 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
INDEPENDENT AUDIT'OR'S REPORT ON INTERNAL BELLE GLADE,OFLOR DFA 334 0 0338
CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL TELEPHONE (561) 996-5612
FINANCIAL ASSISTANCE AWARDS PROGRAMS FAX (561) 996-6248
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, 1996, and have issued our report thereon dated
January 20, 1997.
We conducted our audit in accordance with generally accepted auditing standards, Government
Auditing Standards, issued by the Comptroller General of the United States; and Office of
Management and Budget Circular A-128, Audits of State and Local Governments. Those
standards and OMB Circular A-128 require that we plan and perform the audit to obtain
reasonable assurance about whether the general purpose financial statements are free of material
misstatement.
In planning and performing our audit for the year ended September 30, 1996, we considered the
internal control structure of the Village of Tequesta, Florida in order to determine our auditing
procedures for the purpose of expressing our opinion on the general purpose financial statements
of the Village of Tequesta, Florida, and to report on the internal control structure in accordance
with OMB Circular A-128. This report addresses our consideration of internal control structure
policies and procedures relevant to compliance with requirements applicable to federal financial
assistance programs. We have addressed internal control structure policies and procedures
relevant to our audit of the general purpose financial statements in a separate report dated
January 20, 1997.
124
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • ACCOUNTING FIRMS ASSOCIATED INC.
The management of the Village of Tequesta, Florida is responsible for establishing and
maintaining an internal control structure. In fulfilling this responsibility, estimates and
judgments by management are required to assess the expected benefits and related costs of
internal control structure policies and procedures. The objectives of an internal control structure
are to provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition, 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,
and that federal financial assistance programs are managed in compliance with applicable laws
and regulations. Because of inherent limitations in any internal control structure, errors,
irregularities or instances of noncompliance may nevertheless occur and not be detected. Also,
projection of any evaluation of the structure to future periods is subject to the risk that
procedures may become inadequate because of changes in conditions or that the effectiveness
of the design and operation of policies and procedures may deteriorate.
For the purpose of this report, we have classified the significant internal control structure
policies and procedures used in administering federal financial assistance programs in the
following categories:
General requirements
° Political activity
° Davis Bacon Act
° Civil rights
° Cash management
° Federal financial reports
° Allowable costs cost principles
° Drug Free Workplace
° Administrative requirements
Suecific requirements
° Types of services
° Eligibility
° Matching, level of effort or earmarking
° Reporting
Claims for advances and reimbursements
Amounts claimed or used for matching
For all of the internal control structure categories listed in the preceding paragraph, we obtained
an understanding of the design of relevant policies and procedures and determined whether they
have been placed in operation, and we assessed control risk.
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t During the year ended September 30, 1996, the Village of Tequesta, Florida had no major
federal financial assistance programs and expended 1009b of the total federal financial assistance
' under the following nonmajor programs:
Federal Emergency Management Agency
Disaster Relief Funding
U.S. Department of Justice
' Public Safety and Community Policing Grant
We performed tests of controls, as required by OMB Circular A-128 to evaluate the
effectiveness of the design and operation of internal control structure policies and procedures that
we considered relevant to preventing or detecting material noncompliance with specific
requirements, general requirements, and requirements governing claims for advances and
reimbursements that are applicable to the aforementioned nonmajor programs. Our procedures
were less in scope than would be necessary to render an opinion on these internal control
structure policies and procedures. Accordingly, we do not express such an opinion.
Our consideration of the internal control policies and procedures used in administering federal
financial assistance award would not necessarily disclose all matters in the internal control
' structure that might constitute material weaknesses under standards established by the American
Institute of Certified Public Accountants. A material weakness is a 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 noncompliance with laws and regulations that would be
material to a federal financial assistance award program that may occur and not be detected
within a timely period by employees in the normal course of performing their assigned functions.
We noted no matters involving the internal control structure and the operations that we consider
to be material weaknesses as defined above.
This report is intended for the information of the management and Village Council. However,
this report is a matter of public record and its distribution is not limited.
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January 20, 1997
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126
N NOWLEN, HOLT & MINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS EVERETT B. NOWLEN hsao-isea), 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
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE POST OFFICE BOX 338
BELLE GLADE, FLORIDA 33430-0338
BASED ON AN AUDIT OF GENERAL PURPOSE FINANCIAL TELEPHONE (561) 996-5612 '
STATEMENTS PERFORMED IN ACCORDANCE WITH FAX (561) 996-6248
GOVERNMENT AUDITING STANDARDS
The Honorable Mayor and Village Council
Village of Tequesta, Florida
We have audited the general purpose financial statements of the Village of Tequesta, Florida,
as of and for the year ended September 30, 1996, and have issued our report thereon dated
January 20, 1997.
We conducted our audit in accordance with generally accepted auditing standards and
Government Auditing Standards, issued by the Comptroller General of the United States, and the '
provisions of Office of Management and Budget Circular A-128, Audits of State acid Local
Governments. Those standards and OMB Circular A-128 require that we plan and perform the
audit to obtain reasonable assurance about whether the general purpose financial statements are '
free of material misstatement. '
Compliance with laws, regulations, contracts and grants applicable to the Village of Tequesta, '
Florida is the responsibility of the Village of Tequesta, Florida's management. As part of
obtaining reasonable assurance about whether the financial statements are free of material
misstatement, we performed tests of the Village of Tequesta, Florida's compliance with certain
provisions of laws, regulations, contracts and grants. However, the objective of our audit of the
general purpose financial statements was not to provide an opinion on overall compliance with '
audit provisions. Accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance that are required to be reported '
under Government Auditing Standards.
127 ,
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • ACCOUNTING FIRMS ASSOCIATED INC.
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The results of our tests disclosed immaterial instances of noncompliance with the above
requirements which we have commuticated to the management of the Village of Tequesta,
Florida in a separate letter dated January 20, 1997.
The report is intended for the information of the management and Village Council. However,
this report is a matter of public record and its distribution is not limited.
~2a,ui.~.w., ll,~[,Q r i d .
January 20, 1997
128
N NOWLEN, HOLT & MINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS EVERETT B. NOWLEN li9so-ivea~, 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
i)ANIELA' E. RUSSELL, CPA
BELLE GLADE OFFICE
333 S. E. 2nd STREET
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE POST OFFICE BOX 338
ELL E GLADE, FLORIDA 33430-0338
WITH THE GENERAL REQUIREMENTS APPLICABLE T TELEPHONE (561) 996-5612
FEDERAL FINANCIAL ASSISTANCE AWARDS PROGRAMS FAX (561) 996-6248
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, 1996, and have issued our report thereon dated
January 20, 1997.
We have applied procedures to test Village of Tequesta, Florida's compliance with the following
requirements applicable to its federal financial assistance programs, which are identified in the
Schedule of Federal Financial Assistance, for the year ended September 30, 1996:
General requirements
° Political activity
° Davis Bacon Act
° Civil rights
° Cash management
° Federal financial records
° Allocable costslcost principles
° Drug Free Workplace
° Administrative requirements
Our procedures were limited to the applicable procedures described in the Office of Management
and Budget's Compliance Supplement for Single Audits of State and Local Governments. Our
procedures were substantially less in scope than an audit, the objective of which is the expression
of an opinion on the Village of Tequesta, Florida's compliance with the requirements listed in
the preceding paragraph. Accordingly, we do not express such an opinion.
129
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS •ACCOUNTING FIRMS ASSOCIATED INC.
1
' With respect to the items tested the results of those procedures disclosed no material instances
of noncompliance with the requirements listed in the second paragraph of this report. With
' respect to items not tested, nothing came to our attention that caused us to believe the Village
of Tequesta, Florida had not complied, in all material respects, with those requirements. Also,
the results of our procedures did not disclose any immaterial instances of noncompliance with
t these requirements.
This report is intended for the information of the management and Village Council. However,
' this report is a matter of public record and its distribution is not limited.
Ianuary 20, 1997
1
' 130
1
H NOWLEN, HOLT & MINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS EVERETT B. NOWLEN heao-ieea), 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. flUSSELL, CPA
BELLE GLADE OFFICE
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE 333 S. E. 2nd STREET
POST OFFICE BOX 336
BELLE GLADE, FLORIDA 33430-0336
WITH SPECIFIC REQUIREMENTS APPLICABLE TO TELEPHONE (561) 996-5612
FAX (561) 996-6246
NONMAJOR FEDERAL FINANCIAL ASSISTANCE
AWARDS PROGRAM TRANSACTIONS
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, 1996, and have issued our report thereon dated
January 20, 1997.
In connection with our audit of the general purpose financial statements of the Village of
Tequesta, Florida, and with our consideration of the Village of Tequesta, Florida's control
structure used to administer federal financial assistance programs, as required by Office of
Management and Budget Circular A-128, Audits of State and Local Governments, we selected
certain transactions applicable to certain nonmajor federal financial assistance awards programs
for the year ended September 30, 1996.
As required by OMB Circular A-128, we have performed auditing procedures to test compliance
with the requirements governing types of services, eligibility, matching, Ievel of effort or
earmarking, reporting, claims for advances and reimbursements, and amounts claimed or used
for matching that are applicable to those transactions. Our procedures were substantially less
in scope than an audit, the objective of which is the expression of an opinion on the Village of
Tequesta, Florida's compliance with these requirements. Accordingly, we do not express such
an opinion.
With respect to the items tested, the results of those procedures disclosed no material instances
of noncompliance with the requirements listed in the preceding paragraph. With respect to items
not tested, nothing came to our attention that caused us to believe that the Village of Tequesta,
Florida had not complied, in all material respects, with those requirements. Also, the results
of our procedures did not disclose any immaterial instances of noncompliance with those
requirements.
131
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS •ACCOUNTING FIRMS ASSOCIATED INC.
' This report is intended for the information of the management and Village Council. However,
this report is a matter of public record and its distribution is not limited.
' January 20, 1997
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t
N ~ NOVVI.EN, HOLT & MINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS EVERETT B. NOWLEN ~isso-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
ELLE GLADE, FLORIDA 33430-0338
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE TELEPHONE (561) 996-5612
FAX (561) 996-6248
WITH LAWS AND REGULATIONS APPLICABLE
TO STATE GRANTS AND AIDS APPROPRIATIONS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
The Honorable Mayor and Village Council
Village of Tequesta, Florida
We have audited the general purpose financial statements of the Village of Tequesta, Florida,
as of and for the year ended September 30, 1996, and have issued our report thereon dated
January 20, 1997.
We conducted our audit in accordance with generally accepted auditing standards; Government
Auditing Standards, issued by the Comptroller General of the United States; and the provisions
of Office of Management and Budget Circular A-128, "Audits of State and Local Governments."
Those standards, OMB Circular A-128, and Rules of the Auditor General, Chapter 10.600,
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to state grants and aids
appropriations received by the Village of Tequesta, Florida, which are identified in the
accompanying Schedule of State Financial Assistance, is the responsibility of the Village's
management. As part of obtaining reasonable assurance about whether the financial statements
are free of material misstatement, we performed tests of the Village's compliance with certain
provisions of laws, regulations, contracts, and grants applicable to state grants and aids
appropriations. However, the objective of our audit of the general purpose financial statements
was not to provide an opinion on overall compliance with such provisions. Accordingly, we do
not express such an opinion.
133
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AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • ACCOUNTING FIRMS ASSOCIATED INC. t
' The results of our tests of compliance indicate that, with respect to the items tested, the Village
of Tequesta, Florida complied, in all material respects, with the provisions referred to in the
' preceding paragraph. With respect to items not tested, nothing came to our attention that caused
us to believe that the Village had not complied, in all material respects, with those provisions.
' This report is intended for the information of management, Village Council and state and federal
audit agencies. However, this report is a matter of public record and its distribution is not
limited.
' January 20, 1997
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~ ,~,
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NOWLEN, HOLT & MINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS EVERETT B. NOWLEN ~~sao-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
MANAGEMENT LETTER POST OFFICE BOX 338
BELLE GLADE, FLORIDA 33430-0338
TELEPHONE (561) 996-5612
FAX (561)996-6248
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, 1996, and have issued our report thereon dated January 20, 1997.
In planning and performing our audit of the general purpose financial statements of the Village
of Tequesta, Florida for the year ended September 30, 1996, 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 Village 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 WHICH 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.
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.
t Bank reconciliations are prepared by persons who participate in the
receipt and disbursement of cash.
' Recordkeeping functions for investments and their income are
performed by the same individual who initiates investment
t 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.
' The above was the only recommendation from the prior year.
CURRENT YEAR COMMENTS
Ad~usti ~ Journal Entries
The Village's current system for reconciling and documenting journal entries does
not provide for an adequate audit trail. We recommend that the Village prepare
a standardized form to be used each time an entry is made. This form should
include, but not be limited to, an entry number, general ledger account numbers,
amounts, dates, preparer identification and reason for the adjustment. After the
preparation and posting of entries, they should be filed by fund.
Personnel and P roll
We were unable to locate Form I-9, Employment Eligibility, copies of a driver's
license and birth certificate for an employee personnel record tested. The
Village's payroll records should be reviewed. Adequate documentation should
be provided to comply with federal employment eligibility requirements.
Forms 941 Quarterly Federal Tax Returns were improperly prepared for the first
second and third quarters of 1996. The wages subject to federal income taxes
were overstated by the tax deferrals deducted from employees. The Village
should amend the 941's as soon as possible to facilitate the Internal Revenue
Service reconciliation of Forms W-2, wages and tax statements.
136
Cash on Hand and 7imety Deposits
Money received for building permits was not always being deposited timely. We
noted one instance where over $28,000 was not deposited for seven days.
Depositing funds timely increases interest revenues and decreases the possibility
of loss or theft. We recommend depositing funds daily.
Automating Collection Procedures
Presently the Building Department manually records transactions of collections
for all permits and licenses. The Building Department then remits the funds to
the finance department for deposit. This system is time consuming. In many
instances automation could reduce a five step process down to two steps. We
recommend the Village investigate an appropriate register/computer system to
eliminate duplicating efforts and improve receipting and depositing time. We
understand that the Building Department is currently looking at computer software
and hardware possibilities.
Purchase Orders
We noted instances where invoices were paid with no purchase order (P.O.), in
excess of the approved P.O., or the P.O. was prepared after the Village had
received the goods and services. For example, we noted an instance in our
testing where $62,000 of services were paid for with an approved P.O. of
$28,000. Proper use of a P.O. system ensures that purchases of goods and
services are authorized prior to purchase. P.O.'s also assist in the earmarking or
encumbrance of funds. Additionally, prior approval of obligations by use of a
P.O. assists the Village Council in making future financial decisions. We
recommend the consistent use of P.O.'s to avoid unwanted obligations, overruns,
better tracking of encumbered funds, and greater communication to the Village
Council.
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 is in substantial agreement with the accompanying financial audit report.
137
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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
the jurisdiction of the Village that would be required to be included in the general
purpose financial statements of the Village, is the Village Employees' Retirement
System which is included as a pension trust fund.
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.
' January 20, 1997
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VILLAGE OF TEQUESTA
Post Office Box 3273 3S7 Tequesta Drive
Tequesta, Florida 33469-0273 (407) 575-b200
Fax: (407) 575-6203
March 24, 1997
The Honorable Mayor and Members of the City Council
Village of Tequesta, Florida
I am pleased to report the Village of Tequesta has again received a "clean" audit report for fiscal
year 1996. In their Independent Auditor's Report dated January 20, 1997, the auditors from
Nowlen, Holt & Miner, P.A. state that the financial statements present fairly, in all material
respects, the financial position of the Village.
With regard to the independent auditor's comments and recommendations for improving the
financial procedures and controls contained in the Section titled "Other Reports" on pages
135-138 of the CAFR, I submit the following comments directed to alleviate conditions cited or
improve upon the areas specified.
PRIOR YEAR COMMENTS WHICH CONTINUE TO APPLY
Segregation of Duties
Recordkeeping for investments will be assigned to a staff member. If additional
staffing becomes available in the future, consideration will be given to address the
separation of duties as recommended for the reconciliation of bank statements.
This item could not be addressed during the current fiscal year due to significant
changes in staff during this audit period.
CURRENT YEAR COMMENTS
Ad~usti~ Journal Entries
The auditors recommendations have been implemented.
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' CURRENT YEAR COMMENTS (Continued)
' ~~rsonnel and Payroll
Administrative personnel have been advised to review all paymll files to ensure
' compliance with federal, state and municipal regulations.
941's has been amended and filed with Internal Revenue Service. This resulted
from a computer programming error which has been corrected. The Village has
recently contracted out payroll services which should eliminate any future
problems of this nature.
'
Cash on Hand and Timely Reports
' Auditors recommendations have been implemented. Internal audits have been
implemented to ensure timely depositing and posting of collections.
Automatic Collection Procedures
The Finance Director has reviewed auditor recommendations with the Building
' Department Official to facilitate the purchase of computer software and hardware
which will eliminate the deficiency.
' Purchase Orders (P.O.'s)
Auditors recommendations have prompted review of the current purchase order
' procedures. Revisions to the current system are presently being drafted. Such
revisions will be reviewed with departmental personnel to ensure that the purchase
order/encumbrance system is properly utilized for the safeguarding of Village
' assets and eliminating unwanted obligations.
Sincerely,
/~ ~..~~/
Bill C. cavelis
Finan a Director
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