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COMPREHENSIVE ANNUAL FINANCIAL REPORT
VILLAGE OF TEQUESTA, FLORIDA
September 30, 1997
Prepared by the Finance Department
VILLAGE OF TEQUESTA, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
September 30, 1997
TABLE OF CONTENT'S
Page
Number
Introductory Section
Letter of Transmittal 1- 10
Certificate of Achievement for Excellence in
Financial Reporting 11
Village of Tequesta Organization Chart 12
List of Principal Officials 13
Financial Section
Independent Auditor's Report 14 - 15
General Purpose Financial Statements
Combined Balance Sheet--All Fund Types and
Account Groups 16 - 19
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances--All Governmental
Fund Types and Expendable Trust Funds 20 - 21
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances--Budget and Actual--
Governmental Fund Types 22 - 24
Combined Statement of Revenues, Expenses and Changes in
Retained Earnings-Proprietary Fund Type 25
Combined Statement of Cash Flows-Proprietary Fund Type 26 - 27
Statement of Changes in Plan Net Asset-Pension Trust Fund 28
Notes to Financial Statements 29 - 66
Required Supplemental Information
Required Supplemental Information -Village
Employees' Pension Trust Fund 67 - 68
VILLAGE OF TEQUESTA, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
September 30, 1997
TABLE OF CONTENTS (Continued)
Page
Number
Financial Section (continued)
Supplemental Information
General Fund
Schedule of Revenues--Budget and Actual 69 - 71
Schedule of Departmental Expenditures--
Budget and Actual 72 - 79
Special Revenue Fund
Schedule of Revenues--Budget and Actual 80
Capital Projects Funds
Combining Balance Sheet 81
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance 82
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance -Budget and Actual 83 - 84
Proprietary Funds (Enterprise Funds)
Combining Balance Sheet 85 - 86
Combining Statement of Revenues, Expenses and Changes
in Retained Earnings 87 - 88
Combining Statement of Revenues, Expenses and
Changes in Retained Earnings -Budget and Actual 89 - 92
Combining Statement of Cash Flows 93 - 96
Fiduciary Funds
Combining Balance Sheet 97
Statement of Plan Net Assets 98
Statement of Changes in Assets and Liabilities --
Agency Fund ~
General Fixed Assets
Schedule of General Fixed Assets by Source 100
Schedule of General Fixed Assets by Function 101
Schedule of Changes in General Fixed Assets
By Function 102
Other Supplemental Information
Schedule of Insurance 103
VILLAGE OF TEQUESTA, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
September 30, 1997
TABLE OF CONTENTS (Continued)
Page
Number
Statistical Section
General Revenues by Source 104-105
General Government Expenditures by Function 106-107
Property Tax Levies and Collections 108
Taxable Value and Just Value of Taxable Property 109-110
Property Tax Rates--All Direct and Overlapping
Governments 111-112
Ratio of Net General Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita 113-114
Legal Debt Margin 115
Computation of Direct and Overlapping Debt 116
Ratio of Annual Debt Service Expenditures for General
Bonded Debt to Total General Expenditures 117
Property Value, Construction and Bank Deposits 118
Principal Taxpayers 119
Miscellaneous Statistics 120
Demographic Statistics 121
Other Reports
Report on Compliance and on Internal Control over
Financial Reporting Based on an Audit of
Financial Statements Performed in Accordance
with Government Auditing Standards 122-124
Management Letter 125-131
Response to Management Letter 132-134
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VILLAGE OF TEQUESTA
Post Office Box 3273 357 Tequesta Drive
Tequesta, Florida 33469-0273 • (561) 575-6200
Fax: (561) 575-6203
March 27, 1998
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, 1997, 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 relatively affluent residential community with adequate commercial facilities necessary to
provide goods and services to its residents. Northern Palm Beach County ranks as one of the
top growth areas in the country. 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 three year period - 1995 through 1997, property values increased an
average of 3.8 % 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
The Village continued its 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 within the Village, while addressing program
enhancements in a planned and coordinated manner in keeping with the anticipated growth of
the tax base. The Village Management addressed such concerns by the following actions:
• Continued 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 and
multi-family residential properties to enhance appearance of properties and
increase property values pursuant to a fully amortized Ordinance requiring the
same.
• Took steps to address facility needs with approval of architectural contract for
design of police and fire-rescue space and leasing of office space for
administrative personnel.
• Commenced final design of reverse osmosis water treatment facility.
• Stormwater drainage enhancements were provided for Seabrook Road and Dover
Ditch drainage basins.
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' • Entered into a Management Agreement with the YMCA of the Palm Beaches,
Inc. for the provision of public recreational programs and activities from the
' newly acquired Recreation Center.
• Successfully defended Tequesta's rights under the Bulk Service Agreement with
' the Town of Jupiter for the provision of bulk water to augment that produced
from Tequesta sources. Jupiter had sought to raise rates 98 % outside the scope
of the Agreement. Judge James Carlisle, Palm Beach County 15th Judicial
' Circuit, ruled in Tequesta's favor in August of 1997.
• Secured a Community Development Block Grant for supplemental appropriations
' for repairs and expenses associated with Hurricane Opal in the amount of
$121,716.
' • Commenced provision of emergency medical services ambulance transport on a
for fee basis.
INFRASTRUCTURE MAINTENANCE AND EXPANSION
' Maintenance and expansion of the community's general infrastructure (such as roads,
bridges, sidewalks, storm water drainage systems, streetscape beautification projects, expansion
' of potable water treatment facilities and development/redevelopment of the Tequesta Town
Center) is a priority of Tequesta. To address this concern, the government has developed afive-
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 1997 Capital Improvement Fund expenditures totaled $458,080 for the following
improvements:
' General Government Improvements
Village Hall Landscape 2 706
' 2 706
Total General Government Improvements
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Transportation and Drainage Improvements
Seabrook Drive Master Drainage Project $271,762
Annual Paving Project 29,626
Cypress Drive Paving 22,000
U.S. Highway One Medians 52,757
Tequesta Drive Bridge Improvement 4,879
Dover Ditch Dredging Project 8,~
Tequesta Drive Drainage Diversion Project 650
Seabrook Road No. Drainage System 2,200
Fairway East Drainage Project 1,500
Total Transportation and Drainage Improvements 393.974
Culture and Recreation Improvements
Engineering services 10,920
Recreation Center Roof 26,180
Tequesta Drive Pathway/Recreation Center Entrance 8,800
Tennis Court Resurfacing 15.500
Total Culture and Recreation Improvements 61,400
Total Capital Improvement Fund Additions 458 080
The 1997 Bond Construction Fund expenditures totaled $24,765 for the following
improvements:
Capital Project Fund Expenditure
Constitution Park Construction Project $ 1,250
Public Safety Facility, Professional Services 23,515
Total Bond Construction Fund Additions 24 765
The 1997 Community Development Enterprise Fund expenses for capital additions totaled
$3,530 for the following additions: '
Equipment Purchase - PC
3 533
1
The 1997 Stormwater Utility Enterprise Fund expenses for capital additions total $27,887
for the following additions:
Equipment Purchase PC and Software $ 9,887
Master Drainage Project 18.000
Total Stormwater Utility Fund Additions 27 887
The 1997 Water Enterprise Fund expenses for capital additions totaled $1,367,744 for
the following additions:
' Equipment Purchase $ 44,015
Improvements to Buildings 20,683
Water System Improvements 20,538
' Centralized Garage Construction 508,129
Well #26 Legal Engineering and Construction 216,738
R/O Plant Engineering 372,318
' R/O Wells Engineering 79,90'4'
R/O Effluent Disposal Engineering 28,173
Water Treatment Plant Rehab Project 32,799
Seabrook Road Water Line Replacement ~•~7
' Total Water Enterprise Fund Additions 1 367 744
FINANCIAL INFORMATION
The management of the government is responsible for establishing and maintaining an
' internal control structwe 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 enswe compliance with legal provisions embodied in the annual appropriated
' budget approved by the Village Council. Activities of the General Fund, Special Revenue Fund,
Capital Project Funds and Enterprise Funds 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 >E~nctions
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, 1997, and the amount and percentage of increases and decreases in relation to
prior year revenues. The increase (decrease) from 1996 has been adjusted to reflect the
transferring of the Community Development Department to an Enterprise Fund.
Source
Percent
Amount of Total
Percent
Increase of
(Decrease) Increase
From 1996 Decrease
Taxes $3,279,491 72.95 $ 95,484 3.00%
Licenses and Permits 91,570 2.04 12,779 16.21
Intergovernmental 471,023 10.48 (479,454) (50.44)
Charges for Services 291,711 6.49 78,428 36.77
Fines and Forfeits 63,343 1.40 (15,235) (19.39)
Interest Income 81,861 1.82 (37,470) (31.40)
Miscellaneous 9,239 .20 3,626 .64
Impact Fees 41,622 .93 32,668 300.65
Intergovernmental Services 166,035 3.69 20,275 13.91
Total Revenues 4 495 895 100.00 % 288 899 (6.04 %)
Taxes accounted for the major source of revenues in actual resources received for 1997.
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 1997 was 6.4693 mills, an
increase of 2.0 % over the previous year millage rate of 6.3425 mills. Property values also
increased 8.6 % over the previous year valuation. A significant increase in charges for services
resulted from implementation of Emergency Medical Service transport services. The large
decrease in intergovernmental revenue was due to a one time FEMA grant received in the prior
year.
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Expenditures
' The following schedule presents a summary of General Fund, Special Revenue Fund,
Capital Project Funds, and Expendable Trust Fund expenditures for the fiscal year ended
September 30, 1997, and the amount and percentage of in creases and decreases in relation to
' prior year amounts:
Percent
' Increase of
Percent (Decrease) Increase
' Purpose Amount of Total From 1996 Decrease
General Government
$ 747,024 15.38 % $ 68 337
( ) (8.38) %
Public Safety 2,472,639 50.90 68,280 2.84
Transportation 409,404 8.43 (103,560) (20.19)
Human Services 1,033 .02
Culture/Recreation 208,619 4.29 46,853 28.96
' Capital Outlay 810,975 16.70 (522,956) (39.20)
Debt Service 207,771 4.28 910 .44
Total Expenditures $4, 857,465 100.00 % 578 810 (10.65) %
' The 10.65 % decrease in operating expenditures under the previous year expenditures is
attributable to increased contractual services for maintenance and a reduction of engineering
' service expense in the Transportation Division and a reduction in Capital Outlay expenditures
as a result of a Federal FEMA Grant for street and drainage improvements received in the fiscal
year 1996.
' 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 reducmg
' 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 Find Balance
t The undesignated balance of the General Fund was $949,798 on September 30, 1997,
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.
PROPRIETARY OPERATIONS
Water Operations
Tequesta's water utility operations are reported in
potable water system consists of a 2.73 million gallop
distribution system of approximately 50 miles of water
a capacity of 1.75 million gallons. Tequesta also purcha;
contracted minimum, at a bulk rate, from the Town of J
extends through July 15, 2006.
Revenues and
Water Consumption
1,000 Gallons
Water Sales
Total Water Consumption
Average and Daily Consumption
1997 1!
Amount A~
~.~ ,,._
$2,857,544 $3,0..,,.,~..
882,610 1,040,250
2.418 2.850
Fiduciary Operations
~ '~`
(157,640) (15.1)
(.43) (15.1)
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 10 % of the assessed taxable value of real property located
within Tequesta. As of September 30, 1997, taxable real property within Tequesta was assessed
at $366,649,040.
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' As of September 30, 1997, Tequesta's net bonded debt was $1,185,000, the ratio of net
bonded debt to taxable value was .32 %, and the net bonded debt per capita was $252.88.
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 Duector. 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.
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, 1997, investments held by Tequesta totaled $5,180,386, 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 5.49 °!o .
' Risk Management
' During 1997, Tequesta continued using third-party insurance coverage for its Risk
Management Program. A detailed list of insurance in effect is contained in the Schedule of
Insurance on page 103 of this report.
OTHER INFORMATION
' Inde ndent Audit
' State Statutes require an annual audit by independent certified public accountants. The
accounting firm of Nowlen, Holt & Miner, P.A., CPA's, was selected to conduct Tequesta's
audit. The auditor's report on the general purpose financial statements is included in the financial
' section of this report.
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Awards
The Government Finance Officers Association (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to Tequesta for its comprehensive annual
financial report for the fiscal year ended September 30, 1996. This was the fourteenth
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.
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 department has our sincere appreciation for the contributions made in the
preparation of this report.
In closing, without the leadership and support of the Village Council of the Village of
Tequesta, preparation of this report would not have been possible.
Sincerely,
Thomas G. Bradford / Bill C. Kas velis
Village Manager Duector Finance
10
1
1
1
i
1
1
Certificate of
Achievement
for Excellence
in Financial
Keporting
Presented to
Village of Tequesta,
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 1996
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 oFF~
~~
i ~o rn- ~ -
~ ~ President
~~ onc~* ~ ~C~
~'~
Executive Director
11
VILLAGE OF TEQUESTA
ORGANIZATION CHART
N
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VII,LAGE OF TEQUESTA, FLORIDA
Council -Manager Form of Government
VILLAGE COUNCIL - 1996-1997
Elizabeth A. Schauer Mayor
Carl L. Hansen Vice-Mayor
Joseph N. Capretta Councihnember
Ron T. Mackail Councilmember
Alexander W. Cameron Councihnember
Thomas G. Bradford
John C. Randolph
(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
Alan Oslund
Assistant to Village
Manager/Village Clerk
Duector of Finance
Chief, Fire Rescue Department
Police Chief
Building Official
Director of Public Works
& Recreation
Water System Manager
Storm Water Manager
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Nowlen, Holt & Miner, P.A.
13
VILLAGE OFFICIALS
Village Manager
Village Attorney
THIS PAGE INTENTIONALLY LEFT BLANK
1
VILLAGE OF TEQUESTA, FLORIDA
FINANCIAL STATEMENTS WITH
INDEPENDENT AUDITOR'S REPORT THEREON
SEPTEMBER 30, 1997
THIS PAGE INTENTIONALLY LEFT BLANK
1
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NH
& Irl
NOWLEN, HOLT & MINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
WEST PALM BEACH OFFICE
215 FIFTH STREET, SUITE 200
POST OFFICE BOX 347
WEST PALM BEACH, FLORIDA 33402-0347
TELEPHONE (561) 659-3060
FAX (561) 835-0628
INDEPENDENT AUDITOR'S REPORT
The Honorable Mayor and Village Council
Village of Tequesta
Tequesta, Florida
EVERETT B. NOWLEN hv3o-ieeal, CPA
EDWARD T HOLT, CPA
WILLIAM B. MINER, CPA
ROBERT W. HENDRIX, JR., CPA
JANET R. BARICEVICH, CPA
KATHLEEN A. MINER, CPA
R. GREGORY SMITH, CPA
ROBERT W. HELMREICH, CPA
TERRY L. MORTON, JR., CPA
N. RONALD BENNETT, CPA
J. MICHAEL STEVENS, CPA
MARK B. ELHILOW, PFS, CPA
DANIELA' E. RUSSELL, CPA
MIGUEL E. MOLINA, CPA
BELLE GLADE OFFICE
333 S. E. 2nd STREET
POST OFFICE BOX 338
BELLE GLADE, FLORIDA 33430-0338
TELEPHONE (561) 996-5612
FAX (561) 996-6248
We have audited the accompanying general purpose financial statements of the Village of
Tequesta, Florida, as of September 30, 1997, and for the year then ended, as listed in the table
of contents. These general purpose financial statements are the responsibility of the Village's
management. Our responsibility is to express an opinion on these general purpose financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and
Government Auditing Standards, issued by the Comptroller General of the United States. Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the general purpose financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the
general purpose financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall 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,
1997, 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 31, 1998 on our consideration of the Village's internal control over financial reporting
and our tests of its compliance with certain provisions of laws, regulations, contracts and grants.
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • ACCOUNTING FIRMS ASSOCIATED INC.
1
We have also reviewed the accounting requirements of the bond ordinances associated with the
Improvement Revenue Refunding Bonds, Series 1994. 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 31, 1998
15
1
GENERAL PURPOSE FINANCIAL STATEMENTS
VILLAGE OF TEQUESTA, FLORIDA
Combined Balance Sheet -All Fund Types and Account Groups
September 30, 1997
Governmental Fund Types
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
Prepaid expenses
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
Special Capital
General Revenue Projects
$ 735,480 $ 50,685 $ 158,199
652,576 125,151
85,947
32,768
5,429
9,630
21,168
$1,542,998
16
50 685 283 350
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Proprietary Fiduciary
Fund Type Fund TXpes Account Groups
Trust General General Totals
and Fixed Long-Term (Memorandum
Enterprise Agency Assets Debt Only)
$1,164,237 $ 6,151 $ $ $ 2,114,752
1,134,423 1,151,320 3,063,470
296,749 382,696
10,000 10,000
3,702 36,470
5,429
24,316 33,946
21,168
778,533 778,533
1,352,241 1,352,241
7,583,337 3,632,335 11,215,672
2,051.696 2,051.696
12 347 538 1 157 471 3 632 335 2 051 696 21 066 073
(Continued)
17
VILLAGE OF TEQUESTA, FLORIDA
Combined Balance Sheet -All FFund Types and Account Groups
September 30, 1997
(Continued)
Governmental Fund Ta pes
Special Capital
General Revenue Projects
Liabilities, equity and other credits
Liabilities
Accounts payable $115,079 $ $ 16,736
Accrued liabilities 129,174
Payable from restricted assets
Deposits
Due to other funds
10,000
Due to other governments 4,068
Deferred revenue 3,560 11,123
Contracts payable 62,750
Deferred compensation payable
Current pportion of:
i
l
C
talized
eases
ap
Notes payable
Compensated absences
Obligations under capitalized leases
Notes payable
Improvement revenue bonds payable
Total liabilities 261, 881 11,123 79.486
uity and other credits
i
nvestments m general fixed assets
Contributed capital
Retained earnings
Reserved for capital improvements
Unreserved
Fund balances
Reserved for:
Capital improvements
Inventory and prepaids 30,798
Law enforcement and fire rescue 30, 849
Employees' retirement plan
Recreation and parks 32,967
Encumbrances 47,415 165,584
Unreserved
Designated for:
Compensated absences 110,170
Disaster emergency relief 50,000
Road project 29,120 120,880
Undesignated 949.798. 39.562 8( 2,600)
Total equity and other credits 1, 281,117 39, 562 203.864
Total liabilities, equity and other credits 1 542 998 SO 685 283 350
18
Proprietary Fiduciary
Fund Type Fund~T s Account Grou s
Trust
and ever ner
Fixed Long-Term Totals
(Memorandum
Enterprise Agency Assets Debt Only)
$ 165,363 $ $ $ $ 297,178
34,876 164,050
231,997 231,997
14
008
270 , 3
1,042,230 1,056,913
91,596 154,346
509,890 509,890
3,589 3,589
91,969 339,491 431,460
511,484 511,484
12,529 15,721 28,250
1,185,000 1,185,000
1,674,419 509,890 2,051,696 4,588.495
3,632,335 3,632,335
4,040,95 1 4,040,951
847,900 847,900
5,784,268 5,784,268
30,798
4,875 35,724
642,706 642,706
32,967
212,999
110,170
50,000
150,000
906.760
10,673,119 647,581 3,632,335 16,477,578
12 347 538 1 157 471 3 632 335 2 051 696 21 066 073
See notes to financial statements.
19
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, 1997
General
Revenues
Taxes $2,947,724
Licenses and permits 12,208
Intergovernmental 471,023
Charges for services 291,711
Fines and forfeits 63,343
Interest 65,243
Miscellaneous 9, 239
Impact fees 41, 622
Intragovernmental services 166,035
Total revenues 4,068,148
Expenditures
Current
General government 747,024
Public safety 2,472,639
Transportation 409, 404
Human services 1,033
Culture/recreation 208, 619
Capital outlay 328,130
Debt service
Principal retirement 39,059
Interest 26, 868
Total expenditures 4,232,776
Excess of revenues over (under) expenditures (164,628)
Other financing sources (uses}
662
180
Debt proceeds/note payables ,
Sales of surplus material 30,313
Operating transfers in 340,146
Operating transfers out (116, 500)
Total other financing sources (uses) 434,621
Excess of revenues and other sources over
(under) expenditures and other uses 269,993
Fund balances, October 1, 1996 1,011,124
Fund balances, September 30, 1997 $1,281,117
20
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Governmental Fund Tvpes
Special Capital
Revenue Projects
$ 331,767 $
79, 362
411,129
65,000
76,844
141,844
269,285
60, 300
(326,000)
(265,700)
3,585
35.977
39 562
16,618
16,618
482,845
482,845
4( 66,227)
150,000
150,000
(316,227)
520,091
203 864
Fiduciary
Fund Type
Expendable
Trust Fund
4,875
4 875
Totals
(M Only dum
$3,279,491
91,570
471,023
291,711
63,343
81,861
9,239
41,622
166,035
4,495.895
747,024
2,472,639
409,404
1,033
208,619
810,975
104,059
103.712
4,857,465
(361,570)
180,662
30,313
550,446
(442,500)
318,921
(42,649)
1,572,067
1 529 418
See notes to financial statements.
21
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, 1997
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeits
Interest
Miscellaneous
Impact fees
Inteagovernmental services
Total revenues
Expenditures
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, 1996
Fund balances, September 30, 1997
General Fund
ariance - '
Favorable
Budget Actual (Unfavorable)
$2,919,295 $2,947,724 $ 28,429
10,000 12,208 2,208
456,225 471,023 14,798
238,680 291,711 53,031
54,500 63,343 8,843
44,115 65,243 21,128
5,000 9,239 4,239
41,622 41,622
163,150 166.035 2.885
3.890,965 4,068.148 177,183
784,290 747,024 37,266
2,536,135 2,472,639 63,496
483,128 409,404 73,724
4,850 1,033 3,817
176,191 208,619 (32,428)
357,057 328,130 28,927
35,530 39,059 (3,529
26,230
26,230 26,868
26,868 638
4,403,411 4,232,776 170,635
(512,446) (164,628) 347,818
180,665 180,662 (3)
2,600 30,313 27,713
356,900 340,146 (16,754)
(116,500) (116.500)
423,665 434.621 10.956
88 781 269,993 358 774
_1,011,124
1 281 117
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S ecial Revenue Fund
ariance -
Favorable
Budget Actual (Unfavorable)
$ 316,400 $ 331,767 $ 15,367
75,000 79,362 4,362
391,400 411.129 19,729
65,000 65,000
76, 875 76, 844 31
141, 875 141, 844 31
249,525 269,285 19,760
60, 300 60, 300
32( 6,000) 326 000
265 700 265 700
16 175 3,585 19 760
35,977
39 562
Capital Proiect Funds
v anance
Favorable
Budget Actual (Unfavorable)
$ $ $
4,000 16,618 12,618
4,000 16,618 12,618
898,895 482,845 416,050
898,895 482,845 416,050
(894,895) (466,227) 428,668
150,000 150,000
150,000 150.000
744 895 (316,227) 428 668
520.091
203 864
(Continued)
23
VILLAGE OF TEQUESTA, FLORIDA
Combined Statement of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual
Governmental Fund Types
For the Fiscal Year Ended September 30, 1997
(Continued)
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeits
Interest
Miscellaneous
Impact fees
Intragovernmental services
Totals (Memorandum Only)
fiance - ,
Favorable
Budget Actual (Unfavorable)
$3,235,695 $3,279,491 $ 43,796
85,000 91,570 6,570
456,225 471,023 14,798
238,680 291,711 53,031
54,500 63,343 8,843
48,115 81,861 33,746
5,000 9,239 4,239
41,622 41,622
163,150 166,035 2,885
Total revenues 4,286,365 4,495,895 209,530
Expenditures
Current
General government
784,290
747,024
37,266
Public safety 2,536,135 2,472,639 63,49b
Transportation 483,128 409,404 73,724
Human services 4,850 1,033 3,817
Culture/recreation 176,191 208,619 (32,428)
Capital outlay
Debt service 1,255,952 810,975 444,977
Principal retirement 100,530 104,059 (3,529
Interest 103,105 103,712 607
~'otal expenditures 5,444,181 4,857,465 586,716
Excess of revenues over (under) expenditures (1,157, 816) (361, 570) 796, 246
Other financing sources (uses)
Debt proceeds/notes payable 180,665 180,662 (3)
Sales of surplus materials 2,600 30,313 27,713
Operating transfers in 567,200 550,446 (16,754)
Operating transfers out 44( 2.500) (442.500)
Total other financing sources (uses) 307,965 318,921 10,956
Excess of revenues and other sources over
(under) expenditures and other uses 849 851 (42,649} 807 202
Fund balances, October 1, 1996 1,567,192
Fund balances, September 30, 1997 1 524 543
See notes to financial statements.
24
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VILLAGE OF TEQUESTA, FLORIDA
Combined Statement of Revenues, Expenses and
Changes in Retained Earnings-
Propnetary Fund Type
For the Fiscal Year Ended September 30, 1997
O erating revenues
~harges for services
Licenses and permits
Total operating revenues
Operating expenses
Purchased services
Personal services
Professional services
Contractual services
Travel and per diem
Management services
Office supplies .
Operating supplies
Reppairs and maintenance
Utilities
Insurance
Other
Depreciation
Total operating expenses
Operating income
Nonoperating revenues (expenses)
Interest income
Interest expense and fiscal charges
Community aid donation
Loss on disposal of equipment
Total nonoperating revenues (expenses)
Income before operating transfers
O rating transfers
~perating transfers in
Operating transfers (out)
Total operating transfers in (out)
Net income
Retained earnings -October 1, 1996,
as restated
Retained earnings -September 30, 1997
See notes to financial statements.
25
Proprietary
Fund T
nterpnse
$3,382,953
431,216
3,814,169
933,571
934,604
620,288
94,453
11,747
166,035
22, 801
55,184
230,164
95,107
48, 872
10,841
371.921
3.595,588
218.581
282,750
(7,250
(1~,0~0
260,173
478.754
118,872
(226,818)
(107,946)
370,808
6,261,360
6 632 168
VILLAGE OF TEQUESTA, FLORIDA
Combined Statement of Cash Flows -
Proprietary Fund Type
For the Fiscal Year Ended September 30, 1997
Proprietary
Fund Type
Enterprise
Cash flows from operating activities:
Net operating income $ 218,581
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation 371, 921
Amortization on bond discount 3,564
Loss on disposal of equipment 5,327
Changes in assets and liabilities:
(Increase) decrease in:
Accounts receivable 23,524
Due from other funds (5,590)
Inventories 2,675
Increase (decrease) in:
Accounts payable 48,957
Accrued liabilities 37,738
Deposits 12,409
Deferred revenue 622,473
Compensated absences (7,603)
Due to other funds (140,177)
Due to other governments (5.032)
Net cash provided by operating activities 1,188,767
Cash flows from noncapital financing activities:
Operating transfers from other funds 118,872
Operating transfers to other funds (226,818)
Contribution (10.000)
Net cash (used) for noncapital financing
activities (117,946)
26
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Proprietary
Fund TXpe
Enterprise
Cash flows from capital and related financing
activities:
Capital contributions $ 373,140
Acquisition and construction of fixed assets (1,304,527)
Principal paid on note payables (9,202)
Interest paid on note payables (1, 937)
Fiscal charges paid on revenue bonds (5,314)
Payments on construction contracts (62,850)
Net cash (used) for capital and related
financing activities (1,010.690)
Cash flows from investing activities:
Purchases of investments (116,211)
Proceeds from sale of investments 147,565
Interest received on investments 279.185
Net cash provided by investing activities 310,539
Net increase in cash and cash equivalents 370,670
Cash and cash equivalents, October 1, 1996 1,572.100
Cash and cash equivalents, September 30, 1997 1 942 770
Noncash Investing_Capital and Financing, Activities
Construction contracts payable -water fund $ 91,596
See notes to financial statements.
27
VILLAGE OF TEQUESTA, FLORIDA
Statement of Changes in Plan Net Assets
Pension Trust Fund
Fiscal Year Ended September 30, 1997
Additions
Contributions
Employer $92,333
Plan members 34,710
Other 53.115
Total contributions 180,158
Investment income
Net appreciation in fair value 101, 259
Total additions 281,417
Deductions
Refunds of contributions 6,486
Administrative expense 3.704
Total deductions 10.190
Net increase 271,227
Net assets held in trust for pension benefits -
October 1, 1996 371,479
Net assets held in trust for pension benefits -
September 30, 1997 642 706
See notes to financial statements.
28
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VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
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.
29
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The Reporting Entity (Continued)
Village Em~loyees' 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 duectly 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".
30
s
' VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
' September 30, 1997
' NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Basis of Presentation -Fund Accounting (Continued)
The following are the fund categories, funds and account groups used by the Village:
' Governmental Fund Types
' Governmental funds are used to account for all or most of a government's general
activities, including the collection and disbursement of earmarked monies (special
revenue funds), and the acquisition or construction of general fixed assets (capital
' projects funds). The general fund is used to account for all activities of the
general government not accounted for in some other fund.
The Special Revenue Fund accumulates certain revenues as required by the
Improvement Revenue Refunding Bonds, Series 1994. These revenues include
franchise fees and occupational licenses.
The Capital Projects Funds are used to account for financial resources to be used
for the acquisition or construction of major capital facilities (other than those to
be financed by the Proprietary Fund).
The Village has established the following two capital projects funds:
Bond Construction Fund
Capital Improvement Fund
All capital projects funds were established to be used for capital expenditures
required by continued growth of the Village.
' 31
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Basis off' Presentation -Fund Accounting (Continued)
Proprietary Fund Type
Enterprise Funds
Enterprise Funds are used to account for operations (a) 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 service to the general public on a continuing basis be financed
or recovered primarily through user charges; or (b) where the governing body has
decided that periodic determination of revenues earned, expenses incurred, and/or
net income is appropriate for capital maintenance, public policy, management
control, accountability, or other purposes.
The City has established four Enterprise Funds as follows:
Community Development Fund
Storm Water Utility Fund
Refuse and Recycling Fund
Water Fund
Fiduciary Fund TXpes
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.
32
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' VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
' September 30, 1997
' NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Basis of Presentation -Fund Accounting (Continued)
Fiduciary Fund Types (Continued)
Pension Trust, Ex endable Trust and A enc Funds (Continued)
P g Y
' 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.
1 The Village has one Expendable Trust Fund, the Special Law Enforcement Trust
Fund, to account for forfeitures received by the police department to be expended
for certain law enforcement purposes as prescribed by Florida Statute Chapter
' 932.704.
The Agency fund is custodial in nature and does not present results of operations
' or have a measurement focus. Agency funds are accounted for using the
modified accrual basis of accounting. This fund is used to account for assets that
the government holds for others in an agency capacity.
1 The Village has one Agency Fund, the ICMA Retirement Fund, which consists
of custodial funds held on behalf of Village employees representing deferred
' compensation.
Account Groups
General Fixed Assets Account Grou
P
' 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.
' 33
VILLAGE OF T'EQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
NOTE 1 - SUNIl~IARY 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 fined 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.
34
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' VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
' September 30, 1997
NOTE 1 - SU1~LVIARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
' Basis of Accounting
The accounting and financial reporting treatment applied to a fund is determined by its
' measurement foals. All governmental funds and expendable trust funds are accounted for using
a current financial resources measurement focus. With this measurement focus, only current
' assets and current liabilities generally are included on the balance sheet. Operating statements
of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e.,
expenditures and other financing uses) in net current assets.
' All proprietary funds and pension trust funds are accounted for on a flow of economic resources
measurement focus. With this measurement focus, all assets and all liabilities associated with
' the operation of these funds are included on the balance sheet. Fund equity (i.e., net total
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. Principal and interest on general long-term debt are recorded
as fund liabilities when due or when amounts have been accumulated in the debt service fund
for payments to be made early in the following year.
' 35
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Basis of Accounting (Continued)
Those revenues susceptible to accrual are franchise fees, taxes, special assessments, licenses,
interest revenue, intergovernmental revenues, and charges for services. Sales taxes collected
and held by the state at year end on behalf of the Village also are recognized as revenue. Fines
and permit revenues are not susceptible to accrual because generally they are not measurable
until received in cash.
The government reports deferred revenue on its combined balance sheet. Deferred revenues
arise when a potential revenue does not meet both the "measurable" and "available" criteria for
recognition in the current period. Deferred revenues also arise when resources are received by
the government before it has a legal claim to them, as when grant monies are received prior to
the incurrence of qualifying expenditures. In subsequent periods, when both revenue recognition
criteria are met, or when the government has a legal claim to the resources, the liability for
deferred revenue is removed from the combined balance sheet and revenue is recognized.
The accrual basis of accounting is followed for the proprietary funds 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 #20, Accounting and Financial Reporting for Proprietary Funds and Other
Governmental Entities that Use Proprietary Funds, provides proprietary activities with a choice
of authoritative guidance issued after November 30, 1989. The Village of Tequesta has elected
to follow GASB pronouncements exclusively after that date.
Budgets and Budgetary Accounting
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 Funds. All
budgets are legally enacted through passage of a resolution.
Budgets for the General, Special Revenue and Capital Project Funds are adopted on a basis
consistent with generally accepted accounting principles. Except for not budgeting for
depreciation, the annual appropriated budgets for the enterprise funds are adopted on a basis
consistent with generally accepted accounting principles. For budgeting purposes, current year
encumbrances are not treated as expenditures.
36
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VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Budgets and Budgetary Accounting (Continued)
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 two supplemental appropriations were made.
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.
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.
37
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Investments
Investments, consisting of U.S. treasury obligations and funds held with the state investment
pool are stated at cost or amortized cost. Assets of the ICMA Retirement Fund and the Village
Employees Pension Trust Fund are reported at market value.
Property and Equipment and General Fixed Assets
Fixed assets used in governmental fund type operations (general fixed assets) are accounted for
in the General Fixed Assets Account Group, rather than in governmental funds. Public domain
("infrastructure") general fixed assets consisting of certain improvements other than buildings,
including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting
systems, are not capitalized.
Property and equipment acquired or constructed for general governmental operations are
recorded as expenditures in the fund making the expenditure and capitalized at cost in the
General Fixed Assets Account Group.
Property and equipment acquired by proprietary funds is capitalized in the respective fund.
All fined assets are valued at historical costs or estimated historical cost if actual historical cost
is not available. Donated fixed assets are valued at estimated fair value on the date donated.
Depreciation of all exhaustible fixed assets used by proprietary funds is charged as an expense
against operations. Accumulated depreciation is reported on proprietary fund balance sheets.
Depreciation has been provided over the estimated useful lives using the straight-line method.
The estimated useful lives are as follows:
Buildings 20-40 years
Improvements 20-30 years
Equipment 3-10 years
38
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
' NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
' 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.
Amortization
' The issue costs and debt discount on long-term debt are amortized over the life of the bonds
using the straight-line method.
u
Ad Valorem Taxes
Ad valorem taxes are assessed and liened as of January 1 and billed the following October.
They are due and payable on November 1 of each year or as soon thereafter as the assessment
roll is certified and delivered to the Tax Collector. These taxes are collected by the County and
remitted to the Village. Revenue is recognized at the time monies are received from the
County. All unpaid taxes become delinquent on April 1 following the year in which they are
assessed.
Discounts are allowed for early payment at the rate of 4 °rb in the month of November, 3 °b in
the month of December, 2 °rb 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.
39
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
NOTE 1 -SUMMARY OF SIG?\TIFICAI4"T ACCOUNTING POLICIES (Continued)
Interfund Transactions (Continued)
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.
Fund Equity
The Village has established reservation and designations of fund balances and retained earnings.
The reserved fund balances for governmental funds represent those portions of the fund balance
not considered as available for future appropriation or legally segregated for a specific use.
Reserve retained earnings for proprietary funds represent the net assets that have been legally
identified for specific purposes. Designated fund balances represent tentative plans for future
use of financial resources.
Compensated 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.
40
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VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
NOTE 1 - SiJMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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 dwing the asset's acquisition period, which theoretically could have been avoided if
expenditures for the asset had not been made.
Total Columns on Combined Statements
Total columns on the combined statements are captioned "Memorandum Only" to indicate that
they are presented only to facilitate financial analysis. Data in these columns do not present
financial position, results of operations, or changes in financial position in conformity with
generally accepted accounting principles. Neither is such data comparable to a consolidation.
Interfund eliminations have not been made in the aggregation of this data.
Statement of Cash Flows
For purposes of the statement of cash flows, the proprietary fund types considers all highly
liquid investments (including restricted assets) with a matwity of three months or less when
pwchased to be cash equivalents, except for those investments which management intends to be
long-term investments.
NOTE 2 -CASH AND INVESTMENTS
Cash and Cash Equivalents
At year end, the carrying amount of the Village's deposits was $2,128,610 and the bank balances
were $2,268,925. Cash consists of unrestricted and restricted funds entirely covered by federal
depository insurance or by a multiple fmaacial institution collateral pool that inswes public
deposits. The collateral pool exists pursuant to the Florida Secwiry for Deposits Act, Chap-
ter 280, which consists of assets pledged to the State Treaswer 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.
41
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
NOTE 2 -CASH AND INVESTMENTS (Continued)
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 duect obligations of
or obligations unconditionally guaranteed by the U. S. Government; interest-bearing tune 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.
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 $35,247.
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.
42
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VILLAGE OF TEQUESTA, FLORIDA
Notes to F'mancial Statements
September 30, 1997
NOTE 2 -CASH A.ti~ INVESTMENTS (Continued)
Investments (Continued)
Obligations of United
' States government
Investment in:
Category Carrying
1 Amount
944 753 $ 944,753
Market
Value
$1,034,204
State investment pool 2,319,638 2,319,638
Deferred compensation
mutual fund 509,890 509,890
Mutual funds (money market) 764,675 764,675
State pension trust fund pool 641.430 641,430
5 180 386 $5.269,837
The state investmem pool, administered by the State Board of Administration of Florida,
contained certain floating rate notes during the 1997 fiscal year and as of September 30, 1997
which were indexed based on the prime rate and/or one and three month LIBOR rates. These
investments, representing approximately 4.101 of the state investment pool portfolio at
September 30, 1997, were purchased to add relative value to the portfolio.
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
Investments
Restricted assets
Cash and cash equivalents
Investments
Balance sheet totals
Adjustments
Mutual funds (money market)
Risk categorization totals
Cash and Cash
Equivalents/
Deposits Investments
$2,114,752 $
3,063,470
778,533
1.352.241
2,893,285 4,415,711
(764.675) 764,675
2 128 610 5 180 386
' 43
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
NOTE 3 -RESTRICTED ASSETS
Restricted assets as of September 30, 1997, consist of the following accounts:
Cash Investments
Meter Deposit Accounts $ 53,549 $ 173,000
Capital Improvement
Accounts 624,984 136,432
Jupiter Water Increase Account 100,000 1,042,809
778 533 1 352 241
NOTE 4 -ACCOUNTS RECEIVABLE -ENTERPRISE FUNDS
Enterprise Funds accounts receivable consists of the following:
Billed services $252,422
Unbilled services 46,327
Total accounts receivable 298,749
Less allowance for uncollectibles 2.000
Net accounts receivable 296 749
44
Total
$ 226,549
761,416
1,142, 809
2 130 774
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VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
NOTE 5 -COMPONENTS OF FIXED ASSETS
A summary of changes in general fixed assets follows:
Balance
October 1, Balance
1996, as September 30,
Restated Additions Deletions 1997
Land $ 397,653 $ $ $ 397,653
Buildings 948,560 41,541 990,101
Improvements other
than buildings 258,778 1 258,777
Equipment 1,667,405 311,277 16,394 1,962,288
Construction in
progress 23.516 23,516
3 272 396 376 334 16 395 3 632 335
The components of fixed assets at September 30, 1997, are summarized as follows:
General
Enterprise Fixed Assets
Funds Account Groun Total
band $ 83,336 $ 397,653 $ 480,989
Buildings 975,957 990,101 1,966,058
Improvements other than
buildings 9,687,004 258,777 9,945,781
Machinery and equipment 445,167 1,962,288 2,407,455
Construction in progress 1,531.234 23.516 1,554,750
12,722,698 3,632,335 16,355,033
Accumulated depreciation 5.139.361 5,139,361
Total 7 583 337 3 632 335 11 215 b72
45
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
NOTE 5 -COMPONENTS OF FIXED ASSETS (Continued)
Significant construction commitments as of September 30, 1997 are as follows:
Estimated
Cost Cost to Completion
Description to Date Complete Date
Enterprise Funds
Water Fund:
Well #26, transmission main
and condemnation expenses
Reverse Osmosis Treatment
Plant -engineering, design
and permitting
Reverse Osmosis Wells -
Phase I -engineering and
design
Reverse Osmosis Project -
disposal transmission main
Water Treatment Rehabilitation
Plant
Seabrook Water Line Replacement
$452,409 $ 2,500 November 1997
572, 514 21, 950 March 1998
300,293 14,000 November 1997
37,923 650,000 May 1999
68,879 1,625 December 1997
44,447 1,0~ November 1997
46
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VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
NOTE 5 -COMPONENTS OF FIXED ASSETS (Continued)
Cost Cost to
Descriesion to Date Complete
Enterprise Funds (Continued)
Storm Water Utility Fund:
Seabrook Dr. Master Drainage
Project
Governmental Funds
Capital Improvement Fund:
Seabrook Dr. Master Drainage
Project
Bond Construction Fund:
Public Safety Facility
Estimated
Completion
Date
$ 18,000 $ 53,000 January 1998
271,531
23,516
NOTE 6 -FLORIDA RETIREMENT SYSTEM
Plan Description
67,500 January 1998
2,040,000 September 1999
All full-time employees hired before January 1, 1996, are eligible to participate in the Florida
Retirement System (FRS), a cost sharing, multiple-employer, public retirement system controlled
by the State Legislature and administered by the State of Florida Department of Administration,
Division of Retirement. The FRS provides retirement and disability benefits, annual cost-of-
Iiving adjustments, and death benefits to plan members and beneficiaries. Apost-employment
health insurance subsidy is also provided to eligible employees.
Benefits are established by Chapter 121, Florida Statutes, and Chapter 22B, Florida
Administrative Code. Amendments to the law can only be made by an act of the Florida
Legislature.
47
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
NOTE 6 -FLORIDA RETIREMENT SYSTEM (Continued)
Plan Description (Continued)
The State of Florida issues a publicly available financial report that includes financial statements
and required supplementary information for the FRS. The latest available report was for the
fiscal year ended June 30, 1997. That report may be obtained by writing to the State of Florida
Division of Retirement, Department of Management Services, 2639-C North Monroe Street,
Tallahassee, FL 32399-1560.
Funding Policy
Participating employers are required to make contributions based upon statewide contribution
rates. The contribution rates by job class for the Village's employees at September 30, 1997,
was as follows: regular employees - 17.43%, special risk employees - 27.10%, and senior
management - 22.24 % . These rates include 0.66 % for the employer Health Insurance Subsidy
contribution, which is the same for all risk classes.
The Village's contributions to the FRS for the fiscal years ending September 30, 1995 through
1997 were $363,567, $399,558, and $378,070, respectively, which were equal to the required
contributions for each fiscal year.
NOTE 7 -VILLAGE 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 participate 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 (the "plan").
48
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VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
NOTE 7 -VILLAGE EMPLOYEES' PENSION TRUST FiJND (Continued)
The plan is a single employer defined benefit pension plan established to provide retirement,
disability and death benefits. The plan is included as a blended component unit in the financial
statements of the Village as a pension trust fund. The plan does not issue a stand alone financial
report. The plan provides retirement benefits as well as death and disability benefits. All
benefits vest after ten years of credited service. Plan document require that the plan be
administered by a Board of Trustees. The Board consists of seven trustees. Three trustees are
appointed by the Village. Three are elected as follows: One of 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-tune general employee elected by a majority of the general employees. A seventh trustee
is chosen by a majority of the first six trustees. Amendments to plan must be approved by the
Board of Trustees. However, authority to establish and amend the benefit provisions of the
plan, rests with the Village Council. As of September 30, 1997, the plan had 25 active
members, no retirees, no beneficiaries receiving benefits and no terminated employees entitled
to but not yet receiving benefits.
SummarLof Significant Accounting Policies
The plan is reported on the accrual basis of accounting. Employee and state contributions are
recognized as revenues in the period in which employee services are performed. Employer
contributions are recognized when due and the employer has made a formal commitment to
provide the contributions.
Method Used to Yalue Investments. Investments are reported at fair value. Short-term
investments are reported at cost which approximates fair value. Securities traded on a national
or international exchange are value at the Iast reported sales price at current exchange rates.
Concentration of Investments
The plan did not have any investment of 5 ~ or more in any one organization.
Flan Descriptions -Public Safet~Emplo~es
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
49
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
NOTE 7 -VILLAGE EMPLOYEES' PENSION TRUST FUND (Continued)
Plan Descriptions -Public Sa~et~mployees (Continued)
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.
If the injury or disease is not 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-Dury-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.
50
1
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
NOTE 7 -VILLAGE EMPLOYEES' PENSION TRUST FUND (Continued)
Fundin PolicX for Public Safety Employ
Firefighters and police officers are required to contribute 5 % of their compensation to the plan.
The State of Florida contributes the net proceeds of the excise tax imposed upon casualty and
property insurers. 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;
however, contribution requirements of plan members and the Village are established and may
be amended by the Village Council. The Village's required and actual contribution rate for the
fiscal year ended September 30, 1997, was 14.73 ~. The Village's actual and the state
contributions were $85,333 and $53,115, respectively.
Plan Descriptions 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 °!o of his average monthly salary based upon his
final five years of service.
51
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
NOTE 7 - VII,LAGE EMPLOYEES' PENSION TRUST FUND (Continued)
Plan Descriptions for General Employees (Continued)
If the injury or disease is not 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 °lo of his average monthly salary based upon his
final five years of service.
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.
Funding PolicX,for General Employees
General employees are required to contribute 5 °b 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; however, contribution requirements of plan
members and the Village are established and may be amended by the Village Council. The
Village's actual and required contribution rate for the fiscal year ended September 30, 1997, was
5.4°6 and the dollar amount of the Village's contribution was $7,000.
52
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VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
NOTE 7 -VILLAGE EMPLOYEES' PENSION TRUST FUND (Continued)
Annual Pension Cost and Net Pension Obligation.
For 1997, the Village's annual pension cost and actual contributions are shown below. The
required contribution were determined as part of the October 1, 1995, actuarial valuation.
During 1997 the net pension plan obligation, before and after the implementation of GASB 27,
was determined to be $-0-.
Annual Village State
Pension Actual Actual
Cost Contribution Contribution
$85,503 $92,333 $53,115
Three Year Trend Information
Annual Percentage Net
Fiscal Year Ended Pension of APC Pension
September 30 Cost (APC) Contributed Obligation
1995 $66, 627 $136.7b °b $-0-
1996 85,503 117.00 -0-
1997 85,503 170.10 -0-
Principal Actuarial Assumntions
The following are the principal actuarial assumptions from the October 1, 1995, actuarial report.
• Funding method for normal retirement and ancillary benefits is the aggregate
actuarial cost method. When the aggregate actual cost method is used, unfunded
actuarial liabilities are not identified or separately amortized.
• The monthly rates are based on the 1994 Unisex Pension Table.
• The rate of return on investment of present and future assets was assumed to be
8.0% compounded annually.
53
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
NOTE 7 -VILLAGE EMPLOYEES' PENSION TRUST FUND (Continued)
Principal Actuarial Assum tp ZOns (Continued)
• Future benefit payments were computed assuming early retirement occurs
according to the withdrawal table below:
Withdrawal
Age Rate
20 80
30 64
40 20
50 0
60 0
• 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.
• Rate of inflation assumed at 4 % .
• Post-retirement factor 0%.
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.
54
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VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
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, 1997, the total liability for compensated absences was $431,460. 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, 1997, the long-term
amount was $339,491. The liabilities recorded by the Enterprise Funds were $91,969.
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 financial statements. There were no settled claims which
exceeded insurance coverage during the past three fiscal years.
55
VILLAGE OF TEQUESTA, FLORIDA
Notes w Financial Statements
September 30, 1997
NOTE 10 -RISK MANAGEMENT (Continued)
The Village is insured under a retrospectively rated policy for worker's compensation coverage.
The plan is a trust fund comprised of local governmental entities. The premiums are based on
the risk class and remuneration of covered employees adjusted by an experience modification
based on the claims history of the Village. At the end of the premium year the Village can
either receive a discount or pay additional premium based on its claims experience. The policy
for the current fiscal year has been finalized with no additional premium due. Should a deficit
develop in the trust fund after excess insurance recoveries, the Village shall thereafter be
responsible for its individual costs.
NOTE 11 -LEASE CONIlVII'TMENTS
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 9/30/97 - $318,455
Capitalized cost - $466,140
(General Fixed Asset Account Group)
911 system
Annual payment: $5,093
5 year term
Expires December 1999
Principal amount outstanding at 9/30/97 - $12,367
Capitalized cost - $20,452
(General Fixed Asset Account Group)
Ambulances
Annual payment: $32,094
10 year term
Expires October 15, 2003
Principal amount outstanding at 9/30/97 - $180,662
Capitalized cost - $180,662
56
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VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
(General Fixed Asset Account Group)
NOTE 11 -LEASE COMIVIITMENTS (Continued)
Capitalized costs and accumulated amortization of the enterprise funds leases are as follows:
Cost $ 81,349
Accumulated amortization 81.349
Amortization expense of $8,223 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, 1997:
Fiscal Year General
Ending Long-Term
September 30, Debt
1998 $ 93,845
1999 93,845
2000 93,845
2001 88,752
2002 88,752
Thereafter 177,522
Total minimum lease payments 636,561
Less: amount representing interest 125.077
Present value of future
minimum lease payments 511 484
57
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VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
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 -LONGTERM LEASE AGREEMENTS
On December 20, 1994, the Village entered into an interlocal agreement with Palm Beach
County. Per the agreement Palm Beach County is to provide for partial funding, land
acquisition and design and construction of a branch library within Tequesta. Upon completion
of the project, the library will be leased to Palm Beach County for 50 years for an annual rent
of one dollar. In the event the lease is terminated by the Village before the end of 50 years, the
Village must reimburse Palm Beach County a depreciated value using a useful life of 25 years
based on an initial value of $405,000 calculated on a straight-line basis.
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.
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 fue protection emergency medical services for a fee. For the
year ended September 30, 1997, fire protection fees received from Jupiter Inlet Colony was
$164,557. 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 $32,094.
58
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VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
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 agreeme~. The amendment extended the agreement for an
additional five years commencing October 1, 1994. For consideration of the extension the
collection rates were reduced. In addition, the Village assessed a 6% franchise fee for each
residential customer, effective October 1, 1994. Nichols Sanitation may also adjust the curbside
and recycling rates beginning October 1, 1995, and each October 1, thereafter based upon the
change in the Consumer Price Index (CPI).
NOTE 16 -LONG-TERM DEBT
General Long-Term Debt
Changes in general long-term debt of the Village for the year ended September 30, 1997, are
summarized as follows:
General long-term
debt at October 1,
1996
Additions:
Capital lease
Note payable
Increase in accrual
for compensated
absences
Deletions:
Repayments of debt
Payment of
obligation under
Joint Venture
Agreement
General long-term
debt at September 30,
1997
Capital Improvement Joint
Compensated Lease Note Revenue Venture
Absences Obh~,ations Pa, a~ble_ Bonds Obli ag tion Total
$324,220 $370,196 $ 8,719 $1,250,000
180,662
15,721
15,271
39,374 8,719
65,000
$8,000 $1,961,135
180,662
15,721
15,271
113,093
8.000 8.000
339 491 511 484 15 721 1 185 000 ~ 2 051 696
' S9
VILLAGE OF TEQUESTA, FLORIDA '
Notes to Financial Statements
September 30, 1997 '
TOTE 16 -LONG-TERM 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, 1997, $1,185,000 of this issue
were outstanding. Any remaining revenues after principal and interest may be used for any t
lawful purpose.
Annual requirements to amortize this debt are as follows:
Coupon
October 1,
Rate
Principal
Interest
Payments '
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
2002
90,000
54,120
144,120 '
Thereafter 790.000 205.718 995,718
709
289 ,
Totals $1,185,000 524 289 $1,
,
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%. On August 12, 1997 the Village traded in the previously
purchased copy machine for a newer model. The Village financed $15,721 over a term of
48 months at an interest rate of 7.5%. As of September 30, 1997, the balance of note was
$15,721.
1
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VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
NOTE 16 -LONG-TERM DEBT (Continued)
Total Lone-Term Debt
The annual requirements to amortize all outstanding debt including interest payments of
$651,893 as of September 30, 1997, are as follows:
Fiscal Capital
Year Ending Compensated Lease Notes Improvement
September 30 Absences Obli ag bons Payable Revenue Total
1998 $ $ 93,845 $ 4,562 $ 142,878 $ 241,285
1999 93,845 4,562 143,573 241,980
2000 93,845 4,562 143,960 242,367
2001 88,752 4,562 139,040 232,354
2002 88,752 144,120 232,872
Thereafter 177,522 995,718 1,173,240
Various 339,491 339.491
339 491 636 561 18 248 1 709 289 2 703 589
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,
1997, $3,355,000 of bonds outstanding are considered defeased.
61
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
NOTE 18 - INTERFiJND RECEIVABLES AND PAYABLES
Individual fund interfund receivables and payables at September 30, 1997 are as follows:
Interfund Interfund
Fund Receivables Payables
General Fund $ $10,000
Storm Water Utility Fund 10.000
10 000 10 000
NOTE 19 - INTERFt1ND ADMINISTRATIVE FEE
During the year ended September 30, 1997, the Enterprise Funds remitted $166,035 to the
General Fund for administrative management fees. This amount is reflected as intra-
governmental services revenue in the General Fund and as management fees, an operating
expense in the Enterprise Funds.
NOTE 20 -CONTRIBUTED CAPITAL -ENTERPRISE FUNDS
The changes in contributed capital consists of the following:
Water Fund
Developer
Contributions
Contributed capital
at October 1, 1996 $1,130, 893
Plus: contributions
Contributed capital at
September 30, 1997 1 130 893
Capital
Improvement
Char eg_ s _
$2,536,918
Total
$3,667,811
373,140 373.140
$2,910,058 040 951
62
' VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
' September 30, 1997
' NOTE 21 - ESTABLISHIVIENT OF NEW FUNDS
' On October 1, 1996, the Village established the following new funds:
The Community Development Fund was established as a new enterprise fund to account for the
' operation of the Village's protective inspections/building department and comprehensive planning
services. This activity was previously accounted for in the General Fund. In creating this fund,
' all of the general fixed assets associated with its operations were reclassified from the General
Fixed Asset Account Group to the Community Development Fund. These assets consisting of
equipment were reclassified net of accumulated depreciation. These assets were capitalized and
' reported as contributed capital at the original cost or estimated original cost less an amount
equivalent to the depreciation that would have been recorded had the fixed assets been recorded
initially in the enterprise fund. The original cost or estimated original cost of these assets was
' $40,410. The related accumulated depreciation was $35,934, resulting in a transfer of fixed
assets of $4,476, which approximates fair market value.
' The Storm Water Utility Fund was established as a new enterprise fund. The fund was
established to finance the National Pollutant Discharge Elimination System storm water permits
as required by the 1987 Federal Clean Water Act, as well as the maintenance of improvements
t to the storm water drainage system. These activities were not previously accounted for in a
fund. The fund collects revenues through anon-ad valorem assessment based upon square
footage of the impervious areas of each parcel located within Village boundaries.
1
The Refuse and Recycling Fund was established as an enterprise fund to account for the
operation of the Village's curbside solid waste and recycling collection services. This activity
was previously accounted for in the Water Fund (Enterprise Fund). As noted in Note 15 these
services are contracted out to Nichols Sanitation under a five year agreement.
transfers of assets or liabilities as a result of creating this fund.
There were no
' 63
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
NOTE 21 -ESTABLISHMENT OF NEW FUNDS (Continued)
Below is a schedule of the affect of transfers made as a result of establishing the new funds
Balance
October 1, Retroactive Balance
1996, as Adjustments October 1,
Previously Increase 1996, as
Reported (Decrease) Restated
Community Development Fund
Total assets $ $ 4,476 $ 4,476
Total liabilities
Total contributed capital
Total fund equity 4,476 4,476
N_ OTE 22 -SEGMENT INFORMATION FOR ENTERPRISE FUNDS
The Village maintains four separate enterprise funds which provide community development,
storm water utility, refuse and recycling and water services. Segment of information on for the
year ended September 30, 1997, was as follows:
Community Storm Refuse and
Development Water Recycling Water
Operating revenues $488,428 $193,828 $274,369 $2,857,544
Depreciation and
amortization
Operating income (loss)
Nonoperating revenues
Net income (loss)
Current capital contributions
Property and equipment
Additions
Net working capital
Total assets
Total equity
1,794 877 369,250
214,788 101,306 3,041 (100,554)
4,374 3,978 6,082 245,739
278,262 86,484 27,395 (21,333)
373,140
3,533 27,887 1,367,744
297,428 62,016 27,395 1,950,894
314,494 95,032 49,728 11,888,284
282,738 86,484 27,395 10,276,502
64
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VII.LAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
' NOTE 23 -DEFICIT FUND BALANCE OF INDIVIDUAL FUNDS
' As of September 30, 1997, the following funds had a deficit in fund balance:
Capital Projects Funds Retained Earnings (Deficit)
' Capital Improvement Fund $(3,640)
The accumulated deficit represent excesses of capital outlay expenses over available prior year
fund balances carried over.
OTE 24 -JOINT VENTURE
N
' 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. During 1997 the
consortium purchased various equipment and supplies as well as collected contributions. The
Village contributed the $8,000 as previously agreed to. The Village did not make any
obligations to contribute any funds in the fiscal year 1998.
' NOTE 25 - CHANGES IN ACCOUNTING METHODS
' During 1997 the Village changed the method of accounting for pension trust funds by
implementing GASB Statement #25 Financial Reporting for Defined Benefit Pension Plans and
Note Disclosure for Defined Contribution Plans and GASB Statement #27 Accounting for
' Pensions by State and Local Governmental Employers. There is no prior or current pension
effect due to this change in accounting method.
' 65
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30, 1997
NOTE 26 -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. Effective February 1, 1996 the Village increased the water
charge to its customers to reflect the possible increase in costs. In August 1997 Palm Beach
County 15th Judicial Court ruled in Tequesta's favor. However, the ruling has been appealed
by the Town of Jupiter. The possible financial impact for Tequesta if Jupiter prevails upon
appeal will be a $600,000 per year increase in water purchase fees. Accordingly, the amounts
collected during the fiscal year of $622,473 were deferred.
In the spring of 1997 the Town of Jupiter filed a complaint seeking an injunction to preclude the
Village from constructing a reverse osmosis water system. On July 29, 1997, a judgment was
made in favor of the Village. The Town of Jupiter has appealed the judgment. As of
January 31, 1998, that appeal is still pending.
NOTE 27 -SUBSEQUENT EVENTS
On January 8, 1998, the Village Council approved Resolution 7-97/98 authorizing the Water
Revenue Bond Series 1998 bond issuance for $7,915,000. The revenue bond proceeds are to
fund the construction of a Reverse Osmosis Water System. Village management anticipates that
the issuance will take place by March 1998.
On June 12, 1997, the Village Council authorized management to enter into a revolving line of
credit for $1,000,000 with Barnett Bank. The line of credit bears interest of 60°6 of Barnett
Bank, Inc. prime lending rate, adjusted day of change. Interest is payable monthly with
principal due at maturity, which is 12 months from the date of closing. The proceeds from the
lawn are to be used to fund capital projects within the Village. On October 10, 1997, the Village
closed on the line and took an initial required draw of $50,001. As of January 31, 1998 no
other draws had been taken.
66
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REQUIRED SUPPLEMENTAL INFORMATION
LI
VILLAGE OF TEQUESTA, FLORIDA
Village Employees' Pension Trust Fund
Required Supplementary Information
Schedule of Employer Contributions
Other Contribution Entities
(1)
Required
Fiscal Year Annual Village State Percentage
Ended Contribution Contributions Contributions Contributed
9/30/93 $ $ 9,117 $ -- --
9/30/94 50,164 46,950 8,801 111.14
9/30/95 66,627 76,161 14,959 136.76
9/30/96 85,503 83,035 17,083 117.09
9/30/97 85,503 92,333 53,115 170.10
(1) October 1, 1993 was the earliest actuarial report prepared. The plan began July 1, 1993.
67
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1
VILLAGE OF TEQUESTA, FLORIDA
Village Employees' Pension Trust Fund
Notes to the Required Supplementary Information
Principal Actuarial Assumptions Actuarial Report 10/1/95
Significant Actuarial Assumptions include the following:
• Funding method for normal retirement and ancillary benefits is the aggregate
actuarial cost method. When the aggregated actual cost method is used,
unfunded actuarial liabilities are not identified or separately amortized.
• The monthly rates are based on the 1994 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
Awe Rate
20 80
30 64
40 20
50 0
60 0
• 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 °b of service and 25
of nonservice.
• Death benefit payments were computed assuming 20 % of service and 80 % of
nonservice.
• Rate of inflation assumed at 4 °,(o .
• Post-retirement factor 0%.
• Valuation of assets is market for equities, bonds, cash and cash equivalents. All
valuations are in conformity with Florida Statute 112.
68
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Revenues -Budget and Actual
For the Fiscal Year Ended September 30, 1997
Taxes
Ad valorem taxes
Current ad valorem taxes
Delinquent ad valorem taxes
Total ad valorem
Public services taxes
Electric
Telephone
Gas
Water
Total public service taxes
Local option gas tax
Total taxes
Licenses and permits
Other licenses and permits
Total licenses and permits
Budget Actual
$2,232,985 $2,263,146
5,000 6,280
2,237.985 2,269.426
342,060 349,032
72,000 82,143
92,250 80,297
15.000 18,698
521,310 530,170
160.000 148,128
2,919,295 2,947,724
10,000 12,208
10,000 12,208
69
Variance - '
Favorable
(Unfavorable)
$ 30,161 '
1,280
31 441 t
6 972 '
10,143 '
(11,953)
3,698
8,860 '
(11, 872) ,
28,429
2,208
2,208
1
Continued '
( )
VII.LAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Revenues -Budget and Actual
For the Fiscal Year Ended September 30, 1997
(Continued)
Variance -
Favorable
Budget Actual (Unfavorable)
Intergovernmental
Cigarette tax $ 13,500 $ 12,246 $ (1,254)
State revenue sharing 129,200 129,216 16
Alcoholic beverage licenses 4,500 4,937 437
One-half cent sales tax 260,000 283,885 23,885
911 maintenance reimbursement 9,945 12,801 2,856
Grants 37,280 25,844 (11,436)
Other 1, 800 2.094 294
Total intergovernmental 456,225 471,023 14.798
Charges for services
Certification, copying, record search 2,000 1,938 (62)
Fire rescue service 164, 560 164, 557 (3)
Fire inspections 9,000 9,915 915
Fire plan review services 4,500 40,728 36,228
EMS transport services 52,420 70,322 17,902
Other fire rescue/EMS services 1,000 745 (255)
Municipal police academy 700 275 (425)
Extra duty -contracted services 4,500 3.231 (1,269)
Total charges for services 23$.680 291,711 53,031
Fines and forfeits
Court fines 50,000 55,438 5,438
Parking tickets 3,500 2,905 (595)
Code enforcement 1,000 5,000 4.000
Total fines and forfeits 54,500 63.343 8.843
(Continued)
70
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Revenues -Budget and Actual ,
For the Fiscal Year Ended September 30, 1997
(Continued)
1
Variance -
Favorable '
Budget Actual (Unfavorable)
Interest '
Tax collector $ 5,000 $ 5,778 $ 778
Investments 39,115 59,465 20,350
,
Total interest 44 115 65,243 21,128
Miscellaneous '
Other 5,000 9,239 4,239
Total miscellaneous 5,000 9,239 4,239 '
Impact fees
Law enforcement
7,049
7,049 '
Fire rescue 8,942 8,942
Parks and recreation 25,631 25,631 '
Total impact fees 41,622 41,622
i '
Intragovernmental serv
ces
Administrative management -
enterprise fund 163,150 166,035 2,885
Total intragovernmental services 163.150 166,035 2,885
Total revenues 3 890 965 068 148 177 183
71
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures -Budget and Actual
For the Fiscal Year Ended September 30, 1997
Budget Actual
General government
Legislative
Travel and per diem $ 13,550 $ 13,516
Other charges 350 186
Books, publications and dues 4.925 3.435
Total legislative 18.825 17.137
Executive
Salaries 154,955 150,648
F.I. C. A. 12, 815 11, 343
Retirement 32,560 30,677
Life and health insurance 22,560 20,899
Worker's compensation insurance 1,070 715
Deferred compensation insurance 4,300 4,377
Professional services 19,250 15,632
Contractual services 5,905 3,124
Travel and per diem 8,710 7,037
Office machines maintenance 1,195 636
Office supplies 1, 840 777
Rentals and leases 1,630 1,310
Books, publications, dues 1,565 804
Other charges 2,450 1.598
Total executive 270.805 249.577
72
Variance -
Favorable
(Unfavorable)
$ 34
164
1,490
1,688
4, 307
1,472
1,883
1,661
355
(77)
3,618
2,781
1,673
559
1,063
320
761
852
21,228
(Continued)
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures -Budget and Actual
For the Fiscal Year Ended September 30, 1997
(Continued)
Variance -
Favorable
Budget Actual (Unfavorable)
General government (continued)
Financial and administrative
Salaries
F.I.C.A.
Retirement
Life and health insurance
Worker's compensation insurance
Professional services
Accounting and auditing
Contractual services
Travel and per diem
Other charges
Office supplies
Books, publications, dues
Office machines maintenance
Total financial and administrative
Legal counsel
Legal services
Total legal counsel
$ 119,500 $ 118,429 $ 1,071
9, 300 8, 854 446
17,210 16,410 800
12,230 12,176 54
880 530 350
5,550 5,307 243
23,250 23,241 9
2,200 2,137 63
1,200 1,009 191
2,200 2,128 72
4,450 4,413 37
555 554 1
3,800 3.751 49
202,325 198,939 3,386
92,000 83,786 8,214
92,000 83.786 8,214
(Continued)
73
t
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures -Budget and Actual
For the Fiscal Year Ended September 30, 1997
(Continued)
General government (continued)
Other general government
Salaries
Unemployment compensation revnbursement
Other personal services
Contractual services
Travel and per diem
Communication services
Transportation postage
Utility services
Fire hydrant rental fees
Rentals and leases
Insurance/claims and judgments
Village Hall maintenance
Relocation expenses
Printing and binding
Promotional activities
Other charges
Off ce supplies
Books, publications, dues
Total other general government
Total general government
Variance -
Favorable
Budget Actual (Unfavorable)
$ 10,650 $ $ 10,650
1,900 1,897 3
13,920 11,374 2,546
14,730 13,333 1,397
275 53 222
5,400 5,386 14
7,000 6,920 80
18,410 18,366 44
13,900 13,900
26,100 21,785 4,315
32,135 32,011 124
12,600 12,527 73
17,850 17,822 28
500 298 202
12,450 11,924 526
6,330 24,808 (18,478)
4,985 4,439 546
1,200 742 458
200,335 197,585 2,750
784,290 747,024 37,266
(Continued)
74
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures -Budget and Actual
For the Fiscal Year Ended September 30, 1997
(Continued)
Public safety
Police department
Salaries
Overtime
F.I.C.A.
Retirement
Life and health insurance
Worker's compensation insurance
Professional services
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
Emergency and disaster relief
Civil preparedness
Total emergency and disaster relief
Variance -
Favorable
Budget Actual (Unfavorable)
$ 791,160 $ 790,433 $ 727
49,160 45,987 3,173
64,630 63,998 632
216,050 212,805 3,245
100,870 98,256 2,614
68,880 67,766 1,114
1,000 975 25
5,035 4,198 837
7,430 5,953 1,477
455 301 154
18,530 14,086 4,444
30,720 26,977 3,743
2,050 1,565 485
10,610 8,720 1,890
14,715 8,606 6,109
5,115 4,575 540
47,740 44,432 3,308
2,660 2, 562 98
1,436.810 1,402,195 34,615
500 256 244
500 256 244
(Continued)
75
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, 1997
(Continued)
Public safety (continued)
Fire and rescue/EMS services
Salaries
F.I.C.A.
Retirement
Life and health insurance
Volunteer fire and rescue
Travel and per diem
Professional services
Communication services
Utility services
Repairs and maintenance
Insurance
Printing
Other charges
Office supplies
Operating supplies
Books, publications, dues
Total fue and rescue/EMS services
Total public safety
Variance -
Favorable
Budget Actual (Unfavorable)
$ 654,095 $ 654,662 $ (567)
48,925 48,905 20
97,160 90,324 6,836
160,640 147,262 13,378
13,625 11,902 1,723
2,295 1,783 512
970 785 185
4,245 4,238 7
2,485 2,481 4
24,925 24,311 614
11,470 8,276 3,194
630 606 24
16,095 12,637 3,458
1,775 1,753 22
53,755 54,877 (1,122)
5,735 5,386 349
1,098.825 1,070,188 28.637
2,536,135 2,472,639 63,496
(continued)
76
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures -Budget and Actual
For the Fiscal Year Ended September 30, 1997
(Continued)
Variance -
Favorable
Budget Actual (Unfavorable)
Transportation
Road and street facilities
Salaries
F.I.C.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
$ 129,685 $ 93,102 ~ 36,583
6,930 6,908 22
25,525 19,435 6,090
21,500 21,482 18
7,544 7,540
46,500 46,451 49
101,790 75,047 26,743
1,900 1,138 762
1,400 1,093 307
1,450 1,234 216
68,950 68,904 46
8,500 8,483 17
44,908 44,413 495
1,000 382 618
7,425 6,414 1,011
7,825 7,223 602
300 155 145
483,128 409,404 73.724
(Continued)
77
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, 1997
(Continued)
Human services
Health -mosquito control
Salaries
Repairs and maintenance
Operating supplies
Personnel training
Variance -
Favorable
Budget Actual (Unfavorable)
$ 800 $ $ 800
200 200
2,850 475 2,375
1.000 558 442
Total human services
Culture/Recreation
Parks and recreation
Salaries
F.LC.A.
Retirement
Life and health insurance
Worker's compensation insurance
Contractual services
Travel and per diem
Communication services
Utility services
Insurance
Repairs and maintenance
Other charges
Off ce supplies
4,850 1,033 3,817
67,030 101,553 (34,523)
7,575 7,555 20
12,175 12,166 9
3,875 3,673 202
1,880 1,785 95
23,880 23,859 21
4,415 4,413 2
700 292 408
17,525 17,515 10
2,000 1,849 151
21,586 21,131 455
500 326 174
100 45 55
(Continued)
78
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures -Budget and Actual
For the Fiscal Year Ended September 30, 1997
(Continued)
Variance -
Favorable
Budget Actual (Unfavorable)
Culture/Recreation (Continued)
Parks and recreation (continued)
Operating supplies $ 2,650 $ 2,276 $ 374
Books, publications, dues 300 190 110
Aid to community organizations 8,500 8,500
Aid to government organizations 1,500 1.500
Total culture/recreation 176,191 208,628 (32,437)
Capital Outlay
General government -executive 6,141 3,174 2,967
General government -other 31,065 10,128 20,937
Police 61,480 56,331 5,149
Fire rescue 229,071 227,111 1,960)
Transportation 29, 300 31, 377 (2,077)
357,057 328,121 28,936
Debt Service
Principal retirement 35,530 39,059 (3,529)
Interest 26,230 26, 868 (63g)
Total debt service 61,760 65,927 (4.167)
Total expenditures $4.403,411 $4,232,776 170 635
79
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1
VILLAGE OF TEQUESTA, FLORIDA
Special Revenue Fund
Schedule of Revenues -Budget and Actual '
For the Fiscal Year Ended September 30, 1997
1
,
Variance
Budge Actual Favorable
(Unfavorable)
,
Taxes '
Franchise fees 316 400 331 767 15 367
Total taxes 316,400 331,767 15,367 '
Licenses and permits '
Professional and occupational licenses 75,000 79,362 4,362
362
000 79
75 4
362 '
Total licenses and permits ,
, ,
29 19 729 '
Total revenues 391 400 11 1
1
80 ,
VILLAGE OF TEQUESTA, FLORIDA
Capital Projects Funds -
Combining Balance Sheet
September 30, 1997
Capital Bond
Improvement Construction
Fund Fund Total
Assets
Cash and cash equivalents $145,932 $ 12,267 $158,199
Investments 125.151 125,151
Total assets 271 083 12 267 283 350
Liabilities, equity and other credits
Accounts payable $ 829 $ 15,907 $ 16,736
Contracts payable 62.750 62.750
Total liabilities 63.579 15,907 79.486
Fund balances
Reserved for:
Encumbrances 14,100 151,484 165,584
Unreserved
Road project 120,880 120,880
Undesignated 72,524 155 124 8( 2.6001
Total equity and other credits 207.504 (3,640) 203.864
Total liabilities, equity and
other credits 271 083 12 267 283 350
81
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1
1
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1
1
1
1
1
1
1
1
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1
VILLAGE OF TEQUESTA, FLORIDA
Capital Projects Funds
Combining Statement of Revenues,
Expenditures and Changes in Fund Balance
For the Fiscal Year Ended
September 30, 1997
Revenues
Interest
Total revenues
Expenditures
Capital outlay
Total expenditures
Excess of revenues over (under)
expenditures
Other financing sowces (uses)
Transfers in
Total other financing sources
Excess of revenues and other financing
sowces over (under) expenditwes and
other financing uses
Fund balances, October 1, 1996
Fund balances, September 30, 1997
Capital Bond
Improvement Construction
Fund Fund Total
16 618 ~_ 16 618
16,618 16.618
458.080 24.765 482.845
458,080 24,765 482,845
441 462 24 765 466 227
150,000 150,000
150,000 150,000
(291,462) (24,765) (316,227)
498,966 21,125 520,091
207 504 3 640 203 864
82
VILLAGE OF TEQUESTA
Capital Projects Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance -Budget and Actual
For the Fiscal Year Ended
September 30, 1997
Revenues
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, October 1, 1996
Fund balances, September 30, 1997
Capital Improvement Fund
Budget Actual Variance
4 000
4,000
16 618
16,618
12 618
12,618
527,770
527,770
52( 3,770)
150.000
150.000
373 770
83
458,080
458,080
44( 1.462)
69,690
69,690
82,308
150,000
150,000
(291,462)
498,966
207 504
82 308
1
1
1
1
1
1
1
1
1
1
i
1
1
1
1
1
1
1
1
1
1
1
1
Bond Construction Fund
Budge, t Actual Variance
~
371 -
,125 ~-
24,765 ~_
346,360
371 ,125 24,765 346,360
(371,125) 24 765 346, 360
371 125 (24,765) 346 360
21,125
3 640
Totals
Budget Actual Variance
4 000 16 618 12 618
4,000 16.618 12,618
898,895 482,845 416.050
898,895 482,845 416,050
894 895 46( 6,227) 428,668
150,000 150.000
150,000 150,000
744 895 (316,227) 28 668
520,091
203 864
84
THIS PAGE INTENTIONALLY LEFT BLANK
1
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1
J
1
PROPRIETARY FUNDS
(ENTERPRISE FUNDS)
1
VILLAGE OF TEQUESTA, FLORIDA
Combining Balance Sheet -Enterprise Funds
For the Fiscal Year Ended September 30, 1997
Community Storm Water Refuse and
Development Utility Recycling
Fund Fund Fund
Assets
Cash and equivalents $192,071 $ 58,021 $ 49,700
Investments 116,211
Accounts receivable 28
Due from other funds 10,000
Due from other goy-ernments
Inventories
Restricted assets
Cash and cash equivalents
Investments
Fixed assets 6.212 27,011
Total assets 314 494 95 032 49 728
Liabilities, equity and other credits
Accounts payable $ 4,329 $ 4,069 $ 22,333
Accrued liabilities 6,255 1,936
Payable from restricted assets
Deposits
Due to other governments 270
Deferred revenue
Contracts payable
Current portion of:
Notes payable
Notes payable
Compensated absences 20.902 2.543
Total liabilities 31.756 8,548 22.333
Equity and other credits
Contributed capital
Retained earnings
Reserved for capital improvements 86,484
Unreserved 282.738 27, 395
Total equity and other credits 282,738 86,484 27.395
Total liabilities, equity and other credits 314 494 95 032 49 728
85
1
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1
Water Fund Total
$ 864,445
1,018,212
296,721
3,702
24,316
778,533
1,352,241
7.550.114
$ 1,164,237
1,134,423
296,749
10,000
3,702
24,316
778,533
1,352,241
7,583,337
11 888 284 $12,347,538
$ 134,632 $ 165,363
26,685 34,876
231,997 231,997
270
1,042,230 1,042,230
91,596 91,596
3,589 3,589
12,529 12,529
68.524 91,969
1,611,782 1,674,419
4,040,951 4,040,951
761,416 847,900
5,474,135 5,784,268
10,276,502 10,673,119
11 888 284 12 347 538
86
VILLAGE OF TEQUESTA, FLORIDA
Combining Statement of Revenues, Expenses and Changes in
Retained Earnings -Enterprise Funds
For the Fiscal Year Ended September 30, 1997
Community Storm Water Refuse and
Development Utility Recycling
Fund Fund Fund
Operating revenues
Charges for services
$ 57,212
$193,828
$274,369
Licenses and permits 431,216
Total operating revenues 488,428 193,828 274,369
Operating expenses
Purchased services 265,621
Personal services 197,849 55,916
Professional services 1,099
Contractual services 56,809 7,475
Travel and per diem 3,626 2,516
Management services 5,400 5,000 5,500
Office supplies 3,432 377
Operating supplies 2,073
Repairs and maintenance 2, 248 15, 847
Utilities
Insurance 925 925
Other 1, 557 4I7 207
Depreciation 1,794 877
Total operating expenses 273 ,640 92, 522 271, 328
Operating income (loss) 214,788 101,306 3,041
Nonoperating revenues (expenses)
Interest income 4,374 3,978 6,082
Interest expenses and fiscal charge
Community aid donation
Loss on disposal of equipment
Total nonoperating revenues (expenses) 4,374 3,978 6,082
Income before operating transfers 219,162 105,284 9,123
rating transfers
~
perating transfers (in) 59,100 41,500 18,272
Operating transfers (out) (60.340)
Total operating transfers in (out) 59,100 1( 8,80(}} 18,272
Net income loss 278,262 86,484 27,395
Retained earnings, October 1, 1996,
as restated 4,476
Retained earnings, September 30, 1997 282 738 86 484 27 395
87
1
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1
Water Fund Total
$ 2,857,544 $ 3,382,953
431,216
2,857,544 3,814,169
667,950 933,571
680,839 934,604
619,189 620,288
30,169 94,453
5,605 11,747
150,135 166,035
18,992 22,801
53,111 55,184
212,069 230,164
95,107 95,107
47,022 48,872
8,660 10,841
369.250 371 921
2,958,098 3,595,588
(100,554) 218.581
268,316 282,750
(7,250) (7,250)
(10,000) (10,000)
(5,327) (5.327)
245.739 260.173
145,185 478,754
118,872
(166.518) (226,818)
(166.518) (107.946)
(21,333) 370,808
6,256.884 6,261.360
6 235 551 6 632 168
88
VILLAGE OF TEQUESTA
Enterprise Funds
Combining Statement of Revenues, Expenses and
Changes in Retained Earniigs -Budget and Actual
For the Fiscal Year Ended
September 30, 1997
Operating revenues
Charges for services
Licenses and permits
Total operating revenues
rating expenses
rchased services
Personal services
Professional services
Contractual services
Travel and per diem
Management services
Office supplies
Operating supplies
Repairs and maintenance
Utilities
Insurance
Other
Depreciation
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses)
Interest income
Interest expense and fiscal charges
Community aid donation
Loss on disposal of equipment
Total nonoperating revenues (expenses)
Income before operating transfers
O rating transfers
~perating transfers in
Operating transfers out
Total operating transfers in (out)
Net income (loss)
Retained earnings -October 1, 1996,
as restated
Retained earnings -September 30, 1997
Community Develop ment Fund
Budget Actual Variance
$ 43,090 $ 57,212 $ 14,122
478.600 431,216 4( 7,384)
521.690 488.428 3( 3,262)
182,030 197,849 (15,819)
4,275 4,275
57,300 56,809 491
4,500 3,626 874
5,400 5,400
4,000 3,432 568
18,565 2,248 16,317
950 925 25
2,100 1, 557 543
1,794 (1,794)
279,120 273,640 5,480
242,570 214,788 2! 7,782)
14,000 4,374 (9,626)
14,000 4, 374 (9,626)
256,570 219,162 3( 7,408)
59,100 59,100
59.100 59,100
315 670 278,262 37 408
4,476
282 738
89
I'
1
(Continued)'
Storm Water Utility Fund
Budget Actual Variance
5198,000 $193,828 $ (4,172)
198.000 193,828 4 172
Refuse and Recycling Fund
Budget Actual Variance
$298,360 $274,369 $ (23,991)
298.360 274,369 23 991
290,680 265,621 25,059
54,250 55,916 (1,666)
1,205 1,099 106
7,575 7,475 100
2,525 2,516 9
5,000 5,000 5,500 5,500
500 377 123
2,200 2,073 127
17,100 15,847 1,253
1,000
500 925
417 75
83
2,880
207
2,673
877 (877)
91
855 522
92 (667) 299.060 271, 328 27.732
. ,
145
106 101
306 (4
839) (700) 3.041 3,741
, . .
2,500 3,978 1,478 700 6,082 5,382
2,500 3.978 1,478 700 6.082 5.382
108,645 105,284 (3,361) 9,123 9,123
41,500 41,500 18,272 18,272
(60, 300) 6( 0, 300)
1( 8.800) 1( 8,800) 18.272 18.272
89 845 86,484 3 361 ~ 27,395 27 395
86 484
27 395
90
(Continued)
VILLAGE OF TEQUESTA
Enterprise Funds
Combining Statement of Revenues, Expenses and
Changes in Retained Earniigs -Budget and Actual
For the Fiscal Year Ended
September 30, 1997
(Continued)
Operating revenues
Charges for services
Licenses and permits
Total operating revenues
rating expenses
rchased services
Personal services
Professional services
Contractual services
Travel and per diem
Management services
Office supplies
Operating supplies
Repairs and maintenance
Utilities
Insurance
Other
Depreciation
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses)
Interest income
Interest expense and fiscal charges
Community aid donation
Loss on disposal of equipment
Total nonoperating revenues (expenses)
Income before operating transfers
Operating transfers
OOpperating transfers in
Operating transfers out
Total operating transfers in (out)
Net income (loss)
Retained earnings -October 1, 1996,
as restated
Retained earnings -September 30, 1997
Water Fund
Budget Actual Variance
$4,203,470 $2,857,544 $(1,345,926)
4,203.470 2,857,544 (1,345,92.61
721,630 667,950 53,680
719,920 680,839 39,081
385,100 619,189 (234,089)
38,980 30,169 8,811
5,500 5,605 (105)
150,135 150,135
19,265 18,992 273
61,260 53,111 8,149
254,050 212,069 41,981
119,800 95,107 24,693
51,095 47,022 4,073
21,850 8,660 13,190
369,250 (369,250)
2,548.585 2,958,098 (409,513)
1,654,885 (100.554) (1,755,439)
75,000 268,316 193,316
(6,250) (7,250) (1,000)
(15,000) (10,000) 5,000
(5,327) (5,327)
53,750 245.739 191.989
1,708.635 145,185 (1,563,450)
195,000 (195,000)
(165,000) (166,518) (1,518)
30.000 (166,518) (196,518)
1 738 635 (21,333) $(1,759,968)
6,256,884
6 235 551
91
1
(Continued) '
Totals
Budget Actual Variance
$4,742,920 $3,382,953 $(1,359,967)
478,600 431,216 (47,384)
5.221,520 3,814,169 (1,407,351)
1,012,310 933,571 78,739
956,200 934,604 21,596
390,580 620,288 (229,708)
103,855 94,453 9,402
12,525 11,747 778
166,035 166,035
23,765 22,801 964
63,460 55,184 8,276
289,715 230,164 59,551
119,800 95,107 24,693
53,045 48,872 4,173
27,330 10,841 16,489
371,921 (371,921)
3,218,620 3,595,588 (376,968)
2,002,900 218,581 X1,784,319)
92,200 282,750 190,550
(6,250) (7,250) (1,000)
(15,000) (10,000) 5,000
(5,327) (5,327)
70,950 260,173 189,223
2,073,850 478,754 (1,595,096)
295,600 118,872 (176,728)
(225,300) (226,818) (1,518)
70,300 (107,946) (178,246)
2144150 370,808 $(1,773,342)
6,261,360
6 632 168
VILLAGE OF TEQUESTA, FLORIDA
Combining Statement of Cash Flows -
Entetprise Funds
For the Fiscal Year Ended September 30, 1997
Community
Development Storm Water
Fund Utili , Fund
Cash flows from operating activities
Net operating income (loss) $ 214,788 $101,306
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation 1,794 877
Amortization on bond discount
Loss on disposal of equipment
Changes in assets and liabilities
(Increase) decrease in:
Accounts receivable
Due from other funds (10,000)
Inventories
Increase (decrease) in:
Accounts payable 4,332 4,068
Accrued liabilities 27,157 4,479
Deposits
Deferred revenue
Compensated absences
Due to other funds
Due to other governments 270
Net cash provided by operating activities 248,341 100,730
Cash flows from noncapital financing activities:
Operating transfer from other funds 59,100 41, 500
Operating transfer to other funds (60, 300)
Contribution
Net cash provided by (used) for noncapital
financing activities 59,100 1( 8.800)
93
Refuse and
Recycling
Fund Water Fund Total
$ 3,041 $(100,554) $ 218,581
369,250 371,921
3,564 3,564
5,327 5,327
(28) 23,552 23,524
4,410 (5,590)
2,675 2,675
22,333 18,224 48,957
6,102 37,738
12,409 12,409
622,473 622,473
(7,~3) (7~~3)
(140,177) (140,177)
(5,302) (5.032)
25,346 814, 350 1,188.767
18,272 118,872
(166,518) (226,818)
(10.000) (10.000)
18.272 (176, 518) (117,946)
See notes to financial statements.
94
(Continued)
VILLAGE OF TEQUESTA, FLORIDA
Combining Statement of Cash Flows -
Enterprise Funds
For the Fiscal Year Ended September 30, 1997
(Continued)
Cash flows from capital and related
financing activities:
Capital contributions
Acquisition and construction of fixed assets
Principal paid on note payables
Interest paid on note payables
Fiscal charges paid on revenue bonds
Payments on construction contracts
Net cash used for capital and related
financing activities
Cash flows from investing activities:
Purchases of investments
Proceeds from sale of investments
Interest received on investments
Net cash provided by (used) for investing activities
Net increase in cash and cash equivalents
Cash and cash equivalents, October 1, 1996
Cash and cash equivalents, September 30, 1997
Community
Development Storm Water
Fund Utility Fund
$ $
(3,533) (27,887)
3 533 2( 7.887)
(116,211)
4,374 3.978
111 837 3,978
192,071 58,021
192 071 58 021
Noncash Investini; Capital and Financial Activities
Construction contracts payable -water fund $ 91,596
95
Refuse and
Recycling
Fund Water Fund Total
$ $ 373,140
(1,273,107)
(9,202)
(1,937)
(5,314)
(62,850)
(979,270)
$ 373,140
(1,304,527)
(9,202)
(1,937)
(5,314)
(62, 850)
(1,010.690)
(116,211)
147,565 147,565
6.082 264.751 279,185
6,082 412.316 310.539
49,700 70,878 370,670
1,572,100 1,572,100
49 700 1 642 978 1 942 770
See notes to financial statements.
96
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VII.LAGE OF TEQUESTA, FLORIDA
Combining Balance Sheet -Fiduciary Fund Types
September 30, 1997
Assets
Cash and cash equivalents
Investments
Total assets
Liabilities and
Fund Balances
Liabilities
Deferred compensation
payable
Total liabilities
Expendable
Trust
Fund
$ 4,875
4 875
4,875
4,875
Pension
Trust
Fund
$ 1,276
641.430
642 706
Agency
Fund Totals
$ $ 6,151
509,890 1,151,320
509 890 $1,157,471
Fund Balances
Reserved for:
Law enforcement
Employees' retirement plan
Total fund balances
Total liabilities and
fund balances
642,706
642,706
4 875 642 706
97
509 890 509 890
509.890 509,890
4,875
642.706
647,581
509 890 1 157 471
VILLAGE OF TEQUESTA, FLORIDA
Statement of Plan Net Assets
September 30, 1997
Pension
Trust
Fund
Assets
Cash and cash equivalents $ 1,276
Investments 641.430
Net assets held in trust for
pension benefits* 642 706
* A schedule of contributions for the Village Employees Pension Plan is presented
on page 67.
98
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VILLAGE OF TEQUESTA, FLORIDA
Statement of Changes in Assets and Liabilities -
Agency Fund
For the Fiscal Year Ended September 30, 1997
Deferred Balance Balance
Compensation October 1, September 30,
Fund 1996 Additions Deductions 1997
Assets
Investments 406 036 147 535 3 681 509 890
Liabilities
Deferred compensation
payable 06 036 147 535 3 681 509 890
99
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VILLAGE OF TEQUESTA, FLORIDA
Schedule of General Fixed Assets by Source
September 30, 1997
General fixed assets
Land $ 397,653
Buildings 990,101
Improvements other than buildings 258,777
Equipment 1, 962, 288
Construction in progress 23.516
Total general fixed assets 3 632 335
Investment in general fixed assets
General Fund revenue 3 632 335
Total investment in general fixed assets 3 632 335
100
General government
Public safety
Transportation
Human services
Culture/recreation
Total general fixed
assets
Prior year data
which cannot
be allocated
Total general fixed
assets
VILLAGE OF TEQUESTA, FLORIDA
Schedule of General Fixed Assets By Function
September 30, 1997
Buildings Construction
and ~
Total Land Improvements ui ment Pro rgress _
$1,363,53b $347,925 $ 910,568 $ 105,043 $
1,717,733 115,535 1,578,682 23,516
213,388 7,713 205,675
6,645 6,645
216,389 49.728 100,418 66.243
3,517,691 397,653 1,134,234 1,962,288 23,516
114,644
114,644
3 632 335 397 653 1 248 878 1 962 288 23 516
101
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General government
Public safety
Transportation
Human services
Culture/recreation
Prior to allocation by
function
Total general fixed
assets
VILLAGE OF TEQUESTA, FLORIDA
Schedule of Changes in General Fixed Assets
By Function
For the Year Ended September 30, 1997
General
Fixed Assets General
October 1, Fixed Assets
1996, as September 30,
Restated Additions Deletions 1997
$1,354,352 $ 10,820 $ 1,636 $1,363,536
1,416,899 309,419 8,585 1,717,733
187,496 29,943 4,051 213,388
6,645 6,645
192.360 26,152 2.123 216,389
3,157,752 376,334 16,395 3,517,691
114.644 114,644
3 272 396 376 334
16 395 3 632 335
102
1
OTHER SUPPLEMENTAL INFORMATION ,
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VILLAGE OF TEQUESTA, FLORIDA
Schedule of Insurance
September 30, 1997
Employees Statutory Life
Group Life Insurance
Group Hospitalization
Comprehensive Automobile
Liability
Public Employees Blanket Bond
Public Official Bond
Workmen's Compensation
Multi-peril
Public Official's Liability
Police Professional Liability
EMT Professional Liability
Boiler and Machinery Liability
Unlawful and Intentional Death
(Police Department Personnel,
death resulting from an
intentional and illegal act)
Polic~Number Coverage
6510006459 $20,000
035381 1.5 times annual
salary
71126 Various
6510006459 $1,000,000
CCP00175 $100,000
30158137 $100,000
GRIT00459 $1,000,000
6510006459 $2,000,000
POD000160-1 $1,000,000
6510006459 $2,000,000
EMS000164 $1,000,000
FBPAT9442007-05 $2,000,000
6510006459 $75,000
103
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VILLAGE OF TEQUESTA, FLORIDA
General Revenues by Source (Unaudited) (1)
Last Ten Fiscal Years
Licenses
Fiscal Year Ended and
September 30 Taxes Permits (3)
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
1997 3,279,491 91,570
(1) Includes General, Special Revenue, Capital Projects, and Expendable Trust Funds.
(2) Includes intragovernmental services, impact fees and interest income.
(3) Beginning 1997, Building Permits reported in Community Development Enterprise Fund,
Occupational Licenses reported herein only.
Source: Village of Tequesta financial records.
104
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Charges
for
Intergovernmental Services
$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
471,023 291,711
Fines and
Forfeits Miscellaneous(2) Total
$53,034 $166,547 $3,122,001
51,555 338,392 3,543,787
37,903 304,227 3,905,327
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
63,343 298,757 4,495,895
105
'
VILLAGE OF TEQUESTA, FLORIDA
General Government Expenditures by Function (Unaudited) (1)
Last Ten Fiscal Years '
Fiscal Year Ended General Public 1
Seu tember 30 Government Safe (2) Transportation
1988 $509,134 $1,435,360 $ 462,873 t
1989 603,396 1,387,841 900,405
1990 671,631 1,725,165
1991 616,142 1,938,477 1,206,458
557,001
'
1992 743,343 2,056,825 651,665
1993 939,549 2,552,513
1994 678,217 2,662,075 592,751
859,763 '
1995 828,386 2,546,227 586,534
1996 891,574 2,662,616 1,045,018
1997 760,326 2,756,090
923,626 '
(1) Includes General, Special Revenue, Debt Service, Capital Projects and Expendable Trust Funds. '
(2) Includes Fire/Emergency Contract with Palm Beach County beginning year 1985 through year 1993.
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.
1
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Culture
Physical Human and Debt
Environment(3) Services Recreation Service Total
$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
1,033 208,619 207,771 4,857,465
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VILLAGE OF TEQUESTA, FLORIDA
Property Tax Levies and Collections (Unaudited) (1)
Last Ten Fiscal Years
Fiscal year Total Current Tax Percent Outstanding Delinquent
Ended Tax Levy Collections of Levy Delinquent Taxes to
Se~ember 30 (1) f 1) Collected Taxes Tax Lew
1988 $1,501,241 $1,496,727 99.7°!0 $ 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 8,648 .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 2,166,385 2,158,420 99.6 7,965 .4
1997 2,270,529 2,263,146 99.7 7,383 .3
(1) Includes discounts taken by property taxpayers.
Source: Palm Beach County Tax Collector's office.
108
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
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
1997 366,649,040 454,995,565
Source: Palm Beach County Property Appraiser's office.
109
Personal Property Total Ratio
Taxable Just Taxable Just Taxable Value
Value Value Value Value To Just Value
$12,052,258 $12,977,252 $274,426,183 $342,502,112 80
14,685,689 15,755,728 305,061,255 382,244,611 80
16,463,806 21,797,356 354,406,269 436,612,303 81 °!o
15,726,846 20,588,283 362,232,906 444,923,277 81 °b
15,846,444 20,706,881 356,914,548 439,603,919 81 °lo
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°l0
16,264,236 18,268,307 353,644,212 443,224,979 80
17,405,293 19,996,199 384,054,333 474,991,764 81
110
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
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
1997 6.4693 4.866 9.5570 .4997 .6970
111
Florida
Naviga-
Jupiter tional Children's County
Inlet Inland Services Health Care
District District Council District Total
.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
.1203 .0500 .4530 1.1600 23.8723
112
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*
1988 4,448
1989 4,479
1990 4,499
1991 4,508
1992 4,533
1993 4,551
1994 4,609
1995 4,623
1996 4,637
1997 4,686
* Source: Palm Beach County Planning Board, University of Florida Estimates,
Federal Census, and Village Building Department Records.
113
Taxable
Value
$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
384,054,333
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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
$ 735,000 $111,920 $ 623,080 .22 °b 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 1~•~
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
1,185,000 39,562 1,145,438 .30 244.44
114
VILLAGE OF TEQUESTA, FLORIDA
Computation of Legal Debt Margin
September 30, 1997
Total assessed value
Legal debt margin:
Debt limitation - 10°b of total
assessed value
Total debt outstanding
Less: amount available in
debt service fund
Total debt applicable to limitation
Legal debt margin
$366,649,040
$ 36,664,904
$1,185,000
39.562
1,145,438
$ 35,519,466
115
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VII,LAGE OF TEQUESTA, FLORIDA
Computation of Duect and Overlapping Debt (Unaudited)
September 30, 1997
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 TeQUesta
$ 1,145,438 100.00 % $1,145,438
134,880,000 .64 % 863,232
225.840,000 .64 °l0 1,445.376
$361,865,438 3 454 046
116
VILLAGE OF TEQUESTA, FLORIDA
Ratio of Annual Debt Service Expenditures for
General Bonded Debt to Total General Expenditures (Unaudited)
Last Ten Fiscal Years
Ratio. of Debt
Total Service to
Fiscal Year Total General Total
Ended Debt Expenditures General
September 30 Principal Interest Service (1) Expenditures
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 100,556 106,305 206,861 5,610,290 3.7
1997 104,059 103,712 207,771 4,857,465 4.3
(1) Includes General, Special Revenue, Capital Projects and Expendable Trust Funds.
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' VILLAGE OF TEQUESTA, FLORIDA
Property Value, Construction and Bank Deposits (Unaudited)
Last Ten Fiscal Years
' Commercial
Construction (1) Residential
Construction (1)
Property
Value (3)
Number Number
Fiscal
Year of
Units
Value of
Units
Value
De
osits (2) Real
Pro
ert
}~ Personal
Property
p p
,
1988
1989 6
6 $6,803,410
1,615,526 24
18 $3,358,458
2,694,552 $294,073,604
289,305,649 $329,524,860
366,488,883 $12,052,258
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
' 1997 2 320,400 169 14,896,648 314,744,875 454,995,565 19,996,199
Source:
1
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(1) Village of Tequesta Building Department.
(2) Tequesta Commercial Banks and Savings and Loan Associations.
(3) Palm Beach County Property Appraiser's office.
118
VILLAGE OF TEQUESTA, FLORIDA
Principal Taxpayers (Unaudited)
September 30, 1997
1997
Assessed
Taxpayers Type of Business Valuation
County Line Plaza (K-Mart)
(TAMWEST) Shopping Center $ 9,292,404
Tequesta Shoppes (Publix)
(Sterling Tequesta/Trails) Shopping Center 7,200,020
Tequesta Shoppes, Ltd. (Waterway Village)
(c/o Capital Management Lot A 3,802,061
Assoc., Inc.)
Dorner Properties
(Bank of Palm Beach Undeveloped
& Trust Company) Real Estate 3,797,095
Tequesta Country Club Golf/Social Club 2,519,032
Barnett Bank (First National
Bank of Jupiter/Tequesta) Banking 2,464,456
Tequesta Fashion Mall
(Edwin J. Nelson) Shopping Center 1,700,000
Tequesta Corporate Center Professional Office
Building 1,400,000
Tequesta Financial Center, Ltd. Professional
Office Building 1,400,000
Bowen, Smith, Stanley, Inc. Commercial Building A
(Tequesta Motor Cars) Real Estate 1, 354, 344
34 929 412
Source: Palm Beach County Property Appraiser's Office
119
Percentage '
of
Assessed
Valuation ,
2.53 % '
1.96 '
1.05 '
1.04 '
.68
.67
.47
1
.38
.38
.36
9.52% ,
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' VILLAGE OF TEQUESTA, FLORIDA
Miscellaneous Statistics (Unaudited)
' September 30, 1997
' Date of Incorporation: 1957
Forms of Government: Council-Manager, 3 Councilmembers elected
even years, 2 Councilmembers elected odd years
' Munici al 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 Department: Number of customers - 4,950
Average daily consumption - 2.42 million gallons
Miles of water mains -approximately 50 miles
Sanitary Sewage: Service provided by Loxahatchee River Environmental Control
District (ENCON)
Storm Sewers: Adequate coverage
Garbage Collection: Service franchised to Nichol's Sanitation
Frequency of service is bi-weekly
Electric Service: Florida Power & Light Company
Telephone Service: Southern Bell Telephone & Telegraph Company
Building~Permits Issued: 1,968
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 Employees: Full-time - 68
120
VILLAGE OF TEQUESTA, FLORIDA
Demographic Statistics (Unaudited)
Last Ten Fiscal Yeazs
Education
Level in
Yeazs of
Fiscal Population Per Capita Median Formal Unemployment
Year (1) Income 2 A e 2 Schooling_ (2) Rate (3)
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 g•2
1994 4,609 8.4
1995 4,623 7.0
1996 4,637 7.5
1997 4,686 3.6
Sources:
(1) Palm Beach County Planning Boazd, University of Florida Estimates and Federal Census.
(2) U.S. Department of Commerce, Bureau of the Census. Information only available for years
provided.
(3) Job Service of Florida.
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N ~"~ NOwLEN, HOLT & MINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS EVERETT B. NOWLEN tisao~ieeal, 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
R. GREGORY SMITH, CPA
TELEPHONE (561) 659-3060 ROBERT W. HELMREICH, CPA
FAX (561) 835-0628 TERRY L. MORTON, JR., CPA
N. RONALD BENNETT, CPA
J. MICHAEL STEVENS, CPA
MARK B. ELHILOW, PFS, CPA
DANIELA' E. RUSSELL, CPA
MIGUEL E. MOLINA, CPA
BELLE GLADE OFFICE
333 S. E. 2nd STREET
POST OFFICE BOX 338
BELLE GLADE, FLORIDA 33430-0338
TELEPHONE (561) 996-5612
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL FAX (561) 996-6248
OVER FINANCIAL REPORTING 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 statement of the Village of Tequesta, Florida, as
of and for the year ended September 30, 1997, and have issued our report thereon dated
January 31, 1998. We conducted our audit in accordance with generally accepted auditing
standards and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States.
Coin lp fiance
As part of obtaining reasonable assurance about whether the Village of Tequesta, Florida's
general purpose financial statements are free of material misstatement, we performed tests of its
compliance with certain provisions of laws, regulations, contracts and grants, noncompliance
with which could have a direct and material effect on the determination of financial statement
amounts. However, providing an opinion on compliance with those provisions was not an
objective of our audit and, 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. However, we noted certain immaterial instances of noncompliance that we
have reported to management of the Village of Tequesta, Florida in as separate letter dated
January 31, 1998 .
,~~
n~--
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • ACCOUNTING FIRMS ASSOCIATED INC.
1
Internal Control Over Financial Reporting
' In planning and performing our audit, we considered the Village of Tequesta's internal control
over financial reporting in order to determine our auditing procedures for the purpose of
expressing an opinion on the general purpose financial statements and not to provide assurance
on the internal control over financial reporting. However, we noted certain matters involving
the internal control over financial reporting and its operation that we consider to be reportable
conditions. Reportable conditions involve matters coming to our attention relating to significant
1 deficiencies in the design or operation of the internal control over financial reporting that, in our
judgment, could adversely affect the Village of Tequesta's ability to record, process, summarize
and report financial data consistent with the assertions of management in the general purpose
' financial statements. Reportable conditions are described below.
' Segre ate ion 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.
' Overpayment of Expenses
During our testing it was noted that the Village overpaid some vendors. The
' overpayment occurred because the Village was not paying from invoice amounts.
Proper accounting procedures include paying from original invoice amounts only.
Following this procedure ensures that duplicate payments will not occur.
Tracking of Voided Checks
The Village's current system of tracking voided checks does not provide for an
adequate audit trail. A list of voided checks and defacing of the check was not
always maintained. All voided checks need to be accounted for and retained.
Reconciliation o~avroll Cash Accounts
' It was noted that a monthly reconciliation of the payroll account, reconciling book
(trial balance) to a reconciled bank balance did not take place. Not reconciling
the account timely led to unposted transactions, thus overstating liabilities or
' understating expenses. All cash accounts need to be reconciled monthly to ensure
timely and accurate accounting records.
r Personnel and Payroll
' Forms 941 Quarterly Federal Tax Returns, were not reconciled to the general
ledger accounts. Reconciliations ensure that postings to the general ledger
accounts are accurate.
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Accounts Payable and Encumbrances
The Village did not maintain a listing of accounts payable and the listing of
encumbrances maintained was not reconciled to the general ledger. The Village
did not follow proper closing procedures to ensure that accounts payable and
encumbrance balances at year end were available and/or accurate. Maintaining
a list of accounts payable and encumbrances and reconciling those lists to the
general ledger is important so management can have timely and accurate
information, to make financial decisions.
Purchase Orders
We noted that the Village encumbered funds by use of purchase order for goods
that were not ordered until the next fiscal year. Purchase orders should only be
used to encumber funds that the Village is obligated for. If goods were not
ordered, the Village has no responsibility to pay for them, therefore a purchase
order should be prepared.
A material weakness is a condition in which the design or operation of one or more of the
internal control components does not reduce to a relatively low level the risk that misstatements
in amounts that would be material in relation to the general purpose fmancial 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 over financial
reporting would not necessarily disclose all matters in the internal control that might be
reportable conditions that are also considered to be material weaknesses. However, we believe
none of the reportable conditions described above is a material weakness. We also noted other
matters involving the internal control over financial reporting that we have reported to
management of the Village of Tequesta, Florida in a separate latter dated January 31, 1998.
This report is intended for the information of the audit committee, management and Village
Council. However, this report is a matter of public record and its distribution is not limited.
January 31, 1998
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&M
NOWLEN, HOLT & MINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
EVERETT B. NOWLEN lisao-iseal. CPA
EDWARD T. HOLT, CPA
WILLIAM B. MINER, CPA
ROBERT W. HENDRIX, JR., CPA
JANET R. BARICEVICH, CPA
KATHLEEN A. MINER, CPA
R. GREGORY SMITH, CPA
ROBERT W, HELMREICH, CPA
TERRY L. MORTON, JR., CPA
N. RONALD BENNETT, CPA
J. MICHAEL STEVENS, CPA
MARK B. ELHILOW, PFS, CPA
DANIELA' E. RUSSELL, CPA
MIGUEL E. MOLINA, CPA
BELLE GLADE OFFICE
333 S. E. 2nd STREET
POST OFFICE BOX 338
BELLE GLADE, FLORIDA 33430-0338
TELEPHONE (561) 996-5612
FAX (56]) 996-6248
WEST PALM BEACH OFFICE
215 FIFTH STREET, SUITE 200
POST OFFICE BOX 347
WEST PALM BEACH, FLORIDA 33402-0347
TELEPHONE (561) 659-3060
FAX (561)635-0628
MANAGEMENT LETTER
The Honorable Mayor and Village Council
Village of Tequesta, Florida
We have audited the general purpose fmancial statements of the Village of Tequesta, Florida as
of for the year ended September 30, 1997, and have issued our report thereon dated January 31,
1998.
' In planning and performing our audit of the general purpose financial statements of the Village
of Tequesta, Florida for the year ended September 30, 1997, 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.
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However, during our audit we noted certain matters involving the internal control structure and
other operational matters that are presented for your consideration. This letter does not affect
our report dated January 31, 1998, on the financial statements of the Village of Tequesta,
Florida. The status of these comments will be reviewed during the next audit engagement. Our
comments and recommendations are intended to improve the internal control structure or result
in other operating efficiencies. Our comments are based upon work done during our audit, and
we do not want to imply that they cover every possible weakness. We have already discussed
these comments with management, 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. Our comments are summarized as follows:
~~c
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS ~ ACCOUNTING FIRMS ASSOCIATED INC.
i
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.
While some duties have been segregated since the prior year report, below are
weaknesses that still exist.
° Bank reconciliations are prepared by persons who participate in the
receipt and disbursement of cash.
° Recordkeeping functions for investments and their income are
performed by the same individual who initiates investment
transactions and has access to cash.
While a lack of segregation in these areas is due to the small staff
available, consideration should be given to separation of these
duties in the future as more staff becomes available. In the
interim, a responsible official independent of the above listed
functions should periodically perform tests to determine if the
accounting procedures in place are being followed.
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 fmance 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 tune.
All other prior year recommendations were implemented.
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CURRENT YEAR CO~~IMENTS
I Finance Department Stafj'ing
During the current fiscal year the Village had several turnovers in finance
I personnel. This turnover caused the finance department to fall behind in the
accounting of the Village transactions.
I We recommend that an evaluation of the finance department be performed to
determine staffing needs.
I Enterprise Funds
It was noted that the newly formed Enterprise Fund called Community
I Development Fund was not charged rent or utility expenses for the building space
it occupied. Enterprise funds are used to account for operations that are financed
and operated in a manner similar to private business enterprises -where the intent
I of the governing body is that the costs of providing services or goods to the
general public on a continuing basis be financed or recovered primarily through
I user charges. Those costs of providing services or goods include all overhead
expenses normal to a "for profit" business.
I We recommend that the Community Development Fund be charged for rent and
utility expense reasonable to the space occupied.
I Overpayment of Expenses
During our testing it was noted that the Village overpaid the workers'
I compensation by $35,493. It was also noted that the Village overpaid Palm
Beach County by $12,572 for unpact fees collected. It appears that both
instances occurred because the Village was not paying from original invoice
I amounts. Proper accounting procedures include paying from original invoice
amounts only. Following this procedure ensures that duplicate payments will not
occur. The Village received credits in the subsequent year for the overpayments.
I We recommend that the Village establish stronger procedures for payment of
invoices by implementing a policy that prohibits payment from any other source
I than original invoice.
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Tracking of Voided Checks
During our testing of disbursements it was noted that procedures were not in
place to properly track voided checks. During the fiscal year there were many
instances where manual checks replaced computer checks. The computer check
would then be voided. A list of voided checks and defacing of the check, for
those instances where a manual check replaced a computer check, was not always
maintained. Not tracking those checks creates a break in the audit trail.
We recommend that the Village establish stronger procedures in the accounting
for checks, voiding checks, and posting manual checks.
Travel Policy
It was noted that individuals receiving auto allowances were also receiving
mileage reimbursements for out of town travel. We could not locate a policy
regarding auto allowances and when mileage reimbursement is allowed. Good
business sense suggests that the allowances are given because the employee
routinely uses their vehicle for business purposes. Allowing an employee who
receives an auto allowance to be reimbursed for out of town mileage appears to
be a double benefit.
We recommend the Village review this area and include in their employee
handbook specifics regarding auto allowances and reimbursement of mileage.
Proper and Equipment
It was noted that the Village did not take a physical inventory of tangible personal
property
Rules of the Auditor General, Chapter 10.400 Local Government-Owned Tangible
Personal Property provides detailed information on property records,
identification, disposition, and inventory procedures for tangible personal
property. Although municipalities are not required to follow these procedures,
adoption and implementation of these procedures would improve the Village's
system for managing tangible personal property.
We recommend that the Village review Chapter 10.400 and incorporate the
relevant procedures in their accounting system.
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' Reconciliation of Payroll Cash Account
' Historically the payroll cash account had been used as an imprest account, that
is funds were transferred from the operating account in an amount equal to the
payroll to come out of the payroll account. During the current fiscal year the
' Village changed their procedures regarding processing of payroll. This change
affected the funding of the payroll account. The result was the Village
overfunded the payroll which led to significant balances in the account. In
' addition, the Village wrote several nonpayroll checks against the account. It was
noted that a monthly reconciliation of the payroll account, reconciling book (trial
balance) to a reconciled bank balance did not take place. Not reconciling the
' account timely led to unposted transactions, thus overstating liabilities or
understating expenses.
' We recommend that the Village establish procedures to ensure that all cash
accounts be properly reconciled monthly.
Personnel and Payroll
' We were unable to locate Form I-9, Employment Eligibility, for two employee
records tested. The Village payroll records should be reviewed. Adequate
documentation should be provided to comply with federal employment eligibility
' requirements.
It was noted that Forms 941 Quarterly Federal Tax Returns, were not reconciled
' to the general ledger accounts. Reconciliations ensure that postings to the
general ledger accounts are accurate.
Accounts Payable and Encumbrances
It was noted that the Village did not maintain a listing of accounts payable and
' the listing of encumbrances maintained was not reconciled to the general ledger.
The Village did not follow proper closing procedures to ensure that accounts
payable and encumbrance balances at year end were available and/or accurate.
' Maintaining a list of accounts payable and encumbrances and reconciling those
lists to the general ledger is important so management can have timely and
accurate information, to make financial decisions. An accounts payable list had
to be developed, after the fact, which caused extensive work to be performed.
We recommend that the Village establish detailed year-end close out procedures
' to ensure accounting records are available and accurate.
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Purchase Orders
During testing of encumbrances we noted that the Village encumbered funds by
use of a purchase order for goods that were not ordered until the next fiscal year.
Purchase orders should only be used to encumber funds that the Village is
obligated for. If goods were not ordered, the Village has no responsibility to pay
for them, therefore a purchase order should not be prepared.
We recommend the Village review proper procedures for current year and
carryover encumbrances with all staff responsible for completing purchase orders.
COMPLIANCE WITH FLORIDA STATE STATUTES
Statute 166.231 -Levying of Public Service Tax
Florida Statute 166.231 requires a municipality to file a Municipal Public Service
Tax Database Report with the Florida Department of Revenue to comply with
Chapter 97-233, Laws of Florida. The Village did not submit this form. In
addition, the Statute requires a municipality collecting the tax from utility
companies to provide to those companies a listing of addresses in the
municipality. The Village did not submit the lists as required. Failure to follow
these requirements could prevent the Village from auditing the records of the
utility company and/or change the rate they may be able to charge.
We recommend the Village review the Statute and file the Database Report and
lists to those companies. In addition, the Village should establish procedures to,
at a minimum, update the Database Report and address lists annually.
Comvliance 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.
Comvliance 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.
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1 Oversight Unit and Component Units
1 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
1 System which is included as a pension trust fund.
1 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 letter is intended for the information of the management and members of the Village
1 Council. This restriction is not intended to limit the distribution of this letter, which is a matter
of public record.
1 January 31, 1998
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TF !~
" VILLAGE OF TEQUESTA
Pos[ Office Box 3273 3~' Tequesta Dri~-e
~~ o` Tequesta. Florida 33469-0273 (~6ll 57>-L~3t10
~ Fas: (~61) ~ 1~-6203
C~' Co
March 30, 1998
Honorable Mayor and Village Council Members
Village of Tequesta, Florida
I am pleased to report the Village of Tequesta has again received an unqualified audit report for
fiscal year 1997. In their Independent Auditor's Report dated 3anuary 31, 1998, the auditors
from Nowlen, Holt & Miner, P.A. state that the fmancial statements present fairly, in all
material respects, the financial position of the Village.
In response to the independent auditor's comments and recommendations for improving the
financial procedures and controls contained in the section titled, "Other Reports" on
pages 125-131 of the CAFR, the following comments indicate a plan of action to alleviate
conditions cited or improve upon the areas specified.
PRIOR YEAR COMMENTS WHICH CONTINUE TO APPLY
Se~,re~ation of Duties
If additional staffing is authorized, efforts will be made to segregate duties
whenever possible.
Automating Collection Procedures
The Village management is currently in the process of selecting computer
hardware and software to upgrade network departmental operations. Completion
of the process in progress should automate the collection procedures cited. In the
interim, the Building Department will replace the manual recording of collections
by utilizing a PC spreadsheet application.
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Hec}•ded Paps-r
' CURRENT YEAR COMMENTS
t Finance Department Staffing
The Village management is coordinating its efforts with assistance from our
' independent auditors to fill staffing vacancies and to accelerate the work required
to reconcile accounts to the current month. Management has also created a
position in the Manager's Off ce to relieve the Finance Department of work,
' previously performed, relating to personnel management activities.
t Enterprise Funds
The auditor's recommendations are being implemented during preparation of the
' FY 97/98 budget.
Travel Policy
The Village's travel policy regarding auto allowance and employee mileage
reimbursement is being revised as recommended; however, it should be noted that
individuals receiving auto allowances were not receiving reimbursement for
mileage expenses for travel within Palm Beach and Martin Counties.
Property and Equipment
The Village maintains personal property records in accordance with Chapter
' 10.400, Rules of the Auditor General. A physical inventory was not performed
as a result of insufficient staffing during the year. In the future, if staffing
allows, a physical inventory will be performed.
' Overpayment of Expenses Tracking of Voided Checks Reconciliation of Payroll
Cash Account Personnel and Payroll Accounts Payables and Encumbrances, and
Purchase Orders
We concur with the auditor's recommendations. The discrepancies cited above
' occurred as a result of employee turnover during the year. Once the current
accounting is reconciled and posted up to date and full staffng is achieved with
employees that have become familiar with the Village accounting system,
' discrepancies such as those referenced above should be eliminated.
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COMPLIANCE WITH FLORIDA STATE STATUTES
F.S. 166.231 -Levying of Public Service Tax
We have complied with the auditor's recommendations. The address listing of Tequesta
residences has been prepared. A copy has been filed with the Florida Department of Revenue
and copies have been mailed to all utility companies collecting Tequesta utility services taxes.
Respectfully submitted,
~\ ~ n
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B111 C. l
Director
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