CAFR_FY Ending_09/30/1998Comprehensive Annual Financial Report
Village of Tequesta, Florida
Fiscal Year Ended September 30, 1 98
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
VILLAGE OF TEQUESTA, FLORIDA
September 30, 1998
Prepared by the Finance Department
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VILLAGE OF TEQUESTA, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
September 30, -1998
TABLE OF CONTENTS
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 - 21
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances -All Governmental
Fund Types and Expendable Trust Funds 22 - 23
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances -Budget and Actual -
Governmental Fund Types 24 - 26
Combined Statement of Revenues, Expenses and Changes in
Retained Earnings -Proprietary Fund Type 27
Statement of Changes in Plan Net Asset -Pension Trust Funds 28
Combined Statement of Cash Flows -Proprietary Fund Type 29 - 30
Notes to Financial Statements 31 - 73
Required Supplemental Information
Required Supplemental Information -
Pension Trust Funds 74 - 75
VILLAGE OF TEQUESTA, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
September 30, 1998
TABLE OF CONTENTS (Continued)
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Page
Number
Financial Section (continued)
Supplemental Information
General Fund
Schedule of Revenues -Budget and Actual 76 - 78
Schedule of Departmental Expenditures -
Budget and Actual 79 - 86
Special Revenue Fund
Schedule of Revenues -Budget and Actual 87
Capital Projects Funds
Combining Balance Sheet 88
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance 89
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance -Budget and Actual 90 - 91
Proprietary Funds (Enterprise Funds)
Combining Balance Sheet 92 - 93
Combining Statement of Revenues, Expenses and Changes
in Retained Earnings 94 - 95
Combining Statement of Revenues, Expenses and
Changes in Retained Earnings -Budget and Actual 96 - 99
Combining Statement of Cash Flows 100-103
Schedule of Restricted Accounts Under Revenue Bond Ordinance 104
Fiduciary Funds
Combining Balance Sheet 105
Combining Statement of Plan Net Assets 106
Combining Statement of Changes in Plan Net Assets 107
General Fixed Assets
Schedule of General Fixed Assets by Source 108
Schedule of General Fixed Assets by Function 109
Schedule of Changes in General Fixed Assets
By Function 110
Other Supplemental Information
Schedule of Insurance 111
VILLAGE OF TEQUESTA, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
September 30, 1998
TABLE OF CONTENTS (Continued)
Page
Number
Statistical Section
General Revenues by Source 112-113
General Government Expenditures by Function 114-115
Property Tax Levies and Collections 116
Taxable Value and Just Value of Taxable Property 117-118
Property Tax Rates -All Direct and Overlapping
Governments 119-120
Ratio of Net General Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita 121-122
Legal Debt Margin 123
Computation of Direct and Overlapping Debt 124
Ratio of Annual Debt Service Expenditures for General
Bonded Debt to Total General Expenditures 125
Property Value, Construction and Bank Deposits 126
Principal Taxpayers 127
Miscellaneous Statistics 128
Demographic Statistics 129
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 130-131
Management Letter 132-135
Response to Management Letter 136-137
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VILLAGE OF TEQUESTA, FLORIDA
FINANCIAL STATEMENTS WITH
INDEPENDENT AUDITOR'S REPORT THEREON
SEPTEMBER 30, 1998
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VILLAGE OF TEQUESTA
~ .Post Office Box 3273 357 Tequesta Drive
~ ~~~ o` Tequesta, Florida 33469-0273 (561) 573-6200 '
o Fax: (561) 575-6203
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February 22, 1999 '
To the Citizens of the '
Village of Tequesta, Florida
The Comprehensive Annual Financial Report for Village of Tequesta, Florida for the fiscal
year ended September 30, 1998, 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 is accurate in all material
respects and is reported in a manner designed to present fairly the fmancial position and results of t
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 fmancial 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 services;
the construction and maintenance of streets, bridges 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.
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Receded Pape,
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, the Town of Jupiter to the south
and Martin County to the north, Tequesta's growth potential for the foreseeable future is favorable.
1 Property values increased approximately 5.8% during 1998. 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 facilitate appreciation of property values through
enforcement and compliance with existing building and zoning codes of the municipality. Policy
makers have previously 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 tem or two- ear moratorium on the collection of fire-rescue, police
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service, and recreation impact fees on all new residential construction completed
' prior to October 12, 1997, to stimulate residential development.
• Enforced compliance measures for retroactive 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.
• Addressed facility needs with preliminary designs of police and fire-rescue space.
• Commenced construction of reverse osmosis water treatment facility in March, 1998.
' • Provided stormwater drainage enhancements for Seabrook Road and Tequesta Drive
drainage basins.
• Initiated provision of public recreational programs and activities from the newly
acquired Recreation Center via a service contract with the YMCA of the Palm
Beaches, Inc.
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Continued to 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.
Jupiter appealed. The Fourth District Court of Appeals reaffirmed the lower Courts decision on
July 29, 1998. Jupiter filed for a re-hearing on August 12, 1998.
Continued to successfully defend Tequesta's rights under the law to construct a reverse
osmosis water treatment facility without having to receive the prior permission of Tequesta's
southern neighbor, the Town of Jupiter. Jupiter filed suit in the spring of 1997 arguing in its
motion that State statutes require permission of adjacent public utilities to expand adjacent public
utilities as was planned by Tequesta. On July 29, 1997, the Circuit Court ruled in Tequesta's favor.
Jupiter appealed. On May 27, 1998, the Fourth District Court of Appeals confirmed the lower
Courts opinion in Tequesta's favor.
Increased personnel to keep pace with growth in the Village by providing a Traffic
Enforcement Officer in the Police Department and a Personnel Specialist in Administration.
Increased fees charged to the public by the Department of Community Development to
keep pace with increases in the cost of delivering the public safety services provided by this
enterprise operation of the Village.
INFRASTRUCTURE MAINTENANCE AND EXPANSION
Maintenance and expansion of the community's general infrastructure (such as roads,
bridges, sidewalks and storm water drainage systems), streetscape beautification projects,
expansion of potable water treatment facilities and development/redevelopment of the Tequesta
Village Center is a priority of Tequesta. To address this concern, the government has developed a
five-year capital projects plan that provides a framework for the development and maintenance of
infrastructure to meet current and future needs.
This plan is revised each budget year in keeping with the priorities and needs of Tequesta.
Also, changes affecting budget projections may require changes to the capital projects plan which
will enable Tequesta to maintain adequate cash reserves and required fund balances.
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The 1998 Capital Improvement Fund expenditures totaled $101,073 for the following
improvements:
Transportation and Drainage Improvements
Seabrook Drive Master Drainage Project $ 12,981
Annual Paving Project 34,566
Eastwinds Landing Roadway 4,780
Seabrook Road Streetscape 27,482
Country Club Road Landscape 6,372
Seabrook Road Improvements 13.692
Total Transportation and Drainage Improvements 99.873
Culture and Recreation Improvements
Tennis Court Resurfacing 1.200
Total Culture and Recreation Improvements 1.200
Total Capital Improvement Fund Additions 101 073
The 1998 Bond Construction Fund expenditures totaled $49,171 for the following
improvements:
Capital Project Fund Expenditure
Public Safety Facility, Professional Services 49 171
Total Bond Construction Fund Additions 49 171
The 1998 Stormwater Utility Enterprise Fund expenses for capital additions total
$249,817 for the following additions:
Tequesta Diversion Project $197,910
Seabrook Drainage Project 51.907
Total Stormwater Utility Fund Additions 249 817
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The 1998 Water Enterprise Fund expenses for capital additions totaled $709,945 for the ,
following additions:
Equipment Purchase $ 2,503
R/O Plant Engineering 627,563
R/O Wells Engineering 18,353
R/O Effluent Disposal Engineering 48,809
Water Treatment Plant Rehab Project 1,624
Seabrook Road Water Line Replacement 11.093
Total Water Enterprise Fund Additions 709 945
FINANCIAL INFORMATION
The management of the government is responsible for establishing and maintaining an
internal control structure designed to ensure that the assets of the government are protected from
loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the
preparation of the fmancial 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 to conforming with generally accepted accounting principles, Tequesta
maintains budgetary controls. The objective of these budgetary controls is to ensure compliance
with legal provisions embodied in the annual appropriated budget approved by the Village Council.
Activities of the General Fund, Special Revenue Fund, Capital 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, encum-
brances are generally 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.
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' General Government Functions
' Revenues
The following schedu le presents a summary of General Fund, Special Revenue Fund,
Capital Project Funds, and Expendable Trust Fund revenues for the fiscal year ended September 30,
1998, and the amount -and percentage of increases and decreases in relation to prior year revenues.
Percent
' Increase of
Percent (Decrease) Increase
' Source Amount of Total From 1997 ecrease
Taxes $3,542,883 74.45 $ 263,392 8.00%
' Licenses and Permits 89,203 1.87 (2,367) (2.58)
Intergovernmental 485,648 10.21 14,625 3.10
Charges for Services 273,779 5.75 (17,932) (6.14)
' Fines and Forfeits 74,641 1.57 11,298 17.8
Interest Income 91,785 1.93 9,924 12.12
Miscellaneous 8,566 .18 (673) (7.28)
Impact Fees 1,525 .03 (40,097) (96.33)
Intergovernmental Services 190,650 4.01 24,615 14.82
Total Revenues $4,758,680 100.00% 262 785 5.84%
Taxes accounted for the major source of revenues in actual resources received for 1998. 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 1998 was 6.6310 mills, an increase of
2.5% over the previous year millage rate of 6.4693 mills. Property values also increased 5.8% over
' the previous year valuation. The decrease in impact fee revenue was due to the refund of-fees
received in prior years as allowed in Resolution 3-95/96, for a moratorium on impact fees to
stimulate residential development.
Ex enditures
' 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, 1998, and the amount and percentage of increases and decreases in relation to prior
year amounts:
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Percent '
Increase of
Percent (Decrease) Increase
Pu~ose Amount of Total From 1997 ecrease '
General Government $ 964,623 20.03% $217,599
Public Safety 2,572,384 53.42 99,745 29.13%
4.03
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Transportation 413,501 8.58 4,097 1.00
Human Services 1,255 .03 222 21.49
Culture/Recreation 243,768 5.06 35,149 16.85 '
Capital Outlay 367,896 7.64 (443,079) (54.63)
Debt Service 252,229 5.24 44,458 21.39
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Total Expenditures $ 4,815,656 100.00% 41 809 (0.86)%
The 0.86% decrease in operating expenditures under the previous year expenditures is '
attributable to a reduction in Capital Outlay expenditures.
Our analysis of the expenditure data presented indicates continued efforts must be taken by ,
Tequesta to constrain the rising costs of providing governmental services without reducing the level
of services currently being provided. Alternative revenue sources must be explored such as: '
expanding the property tax base by growth and development in the community and possibly
implementing user fees for appropriate government services.
General Fund Balance
The undesignated balance of the General Fund was $1,059,909 as of September 30, 1998, '
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 the Water Enterprise Fund. Tequesta's ,
potable water system consists of a 2.73 million gallon per day water treatment plant and a
distribution system of approximately 50 miles of water mains and water storage facilities with a ,-
capacity of 1.75 million gallons. Tequesta also purchases 1.5 million gallons of water per day, the
contracted minimum, at a bulk rate from the Town of Jupiter, Florida. The current agreement
extends through July 15, 2006. '
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Revenues and Increase Percent of
Water Consumption 1998 1997 (Decrease) Increase
1.000 Gallons Amount Amount From 1997 ecrease
Water Sales $2,942,477 $2,857,544 $ 84,933 2.97%
Total Water Consumption 886,950 882,610 4,340 .OS%
' Average and Daily Consumption 2.430 mil 2.418 mil .12 .OS%
' Fiduciary Operations
Tequesta's fiduciary operations consist of an Expendable Trust Fund which was established
' to account for forfeitures received by the Police Department.
In 1996, Tequesta established a retirement system to account for the pension benefits of
' the Village employees. Reference Note 9 (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 18 (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, 1998, taxable real property within Tequesta was assessed at
$366,649,040.
' As of September 30, 1998, Tequesta's net bonded debt was $1,115,000, the ratio of net
bonded debt to taxable value was .28%, and the net bonded debt per capita was $211.70.
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Cash Management '
Tequesta maintains two pooled cash accounts known as the general corporation investment
account and the water enterprise investment account. The equity of all funds comprising the ,
investment accounts is maintained at all times. Cash requirements are constantly monitored by the
Finance Director and temporary idle cash is approved for investment by the Village Manager upon
recommendation from the Finance Director. The investment policy of Tequesta is to maximize its ,
investments in high .quality risk-free securities authorized by State statutes, while maintaining a
competitive yield on its portfolio. '
Tequesta's investments for the current yeaz consisted of deposits with the State Board of
Administration -Local Government Surplus Funds Trust Fund Investment Pool, obligations of the
U.S. government and funds held by an outside custodian on behalf of the Pension Trust Funds. '
Investments with the State Boazd 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 aze considered practically risk free.
On September 30, 1998, investments held by Tequesta totaled $15,353,489, 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 5.44%. '
Risk Management
During 1998, 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 111 of this report. ,
OTHER INFORMATION '
Independent Audit
Florida 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, 1997. This was the fifteenth consecutive
' year that Tequesta has received this prestigious award. In order to be awarded a Certificate of
Achievement, Tequesta had to publish an easily readable and efficiently organized
comprehensive annual fmancial 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.
' Acknowledgments
' 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 Connie Holloman
Village Manager Finance Director
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Village of Tequesta,
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 1997
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.
~gE OFFj~ ` ,
4 F s /``/
W UNTE~A yy
~ ~iNAOA ~ ° President
CURPUIUiIUN S
cxic~co ~` ,Q
~~~~~ ji~G_i.
Executive Director
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VILLAGE OF TEQUESTA
ORGAN/ZA TION CHART
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VILLAGE OF TEQUESTA, FLORIDA
Council -Manager Form of Government
VILLAGE COUNCIL -1997-1998
Elizabeth A. Schauer Mayor
Carl L. Hansen Vice-Mayor
Joseph N. Capretta Councilmember
Ron T. Mackail Councilmember
Alexander W. Cameron Councilmember
Thomas G. Bradford
John C. Randolph
(Jones, Foster, Johnston &
Stubbs, P.A.)
Joann Manganiello
Connie Holloman
James M. Weinand
Stephen J. Allison
Scott D. Ladd
Gary Preston
Thomas C. Hall
VILLAGE OFFICIALS
Village Manager
Village Attorney
Assistant to Village
Manager/Village Clerk
Director of Finance
Chief, Fire Rescue Department
Police Chief
Director of Community Development
Director of Public Works
& Recreation
Water System Manager
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Nowlen, Holt & Miner, P.A.
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NOWLEN, HOLT & 1VIINER, 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
Village of Tequesta, Florida
EVERETT B. NOWLEN (ia~o-iesa), 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
RICHARD M. SOTHEN, CPA
BELLE GLADE OFFICE
333 S. E. 2nd STREET
POST OFFICE BOX 336
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 and for the year ended September 30, 1998, 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.
Except as described in the following paragraph, 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. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether
the fmancial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the fmancial statements. An audit also
includes assessing the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
Governmental Accounting Standards Board Technical Bulletin 98-1, Disclosures about Year 2000
Issues, requires disclosure of certain matters regarding the year 2000 issue. The Village of
Tequesta, Florida has included such disclosures in Note 28. Because of the unprecedented nature
of the year 2000 issue, its effects and the success of related remediation efforts will not be fully
determinable until the year 2000 and thereafter. Accordingly, insufficient audit evidence exists to
support the Village of Tequesta, Florida's disclosures with respect to the year 2000 issue made in
Note 28. Further, we do not provide assurance that the Village of Tequesta, Florida is or will be
year 2000 ready, that the Village of Tequesta, Florida's year 2000 remediation efforts will be
successful in whole or in part, or that parties with which the Village of Tequesta, Florida does
business will be year 2000 ready.
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AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS ~ ACCOUNTING FIRMS ASSOCIATED INC.
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In our opinion, except for the effects of such adjustments, if any, as might have been determined to
be necessary had we been able to examine evidence regarding year 2000 disclosures, 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, 1998, 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 21,
1999 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.
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
fmancial 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.
it
We did not examine the statistical data as set forth in the table of contents and, therefore, express no
opinion thereon. '
January 21, 1999
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GENERAL PURPOSE FINANCIAL STATEMENTS
VILLAGE OF TEQUESTA, FLORIDA
Combined Balance Sheet -
All Fund Types and Account Groups
September 30,1998
Governmental Fund Types
Special Capital
General Revenue Projects
Assets and other debits
Cash and cash equivalents
Investments
Accounts receivable
(Net of allowance for uncollectibles)
Due from other funds
Due from other governments
Inventories of supplies
Restricted assets
Cash and cash equivalents
Investments
Other assets
Fixed assets
Amount to be provided for retirement of
general long-term debt
Total assets and other debits
$ 234,296 $ 5,719 $ 6,280
1,233,451 75,000 284,505
80,015 2,056
12,286 16,454
4,295
7,864
$1,572,207 $ 99,229 $ 290,785
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Proprietary Fiduciary
Fund Type Fund Type
Enterprise Trust
$ 1,124,618 $ 9,245
2,027,955 935,586
337,108 4,162
26,784 5,747
181,031
17,061
165,513
9,915,254
144,600
8,243,441
$ 22,183,365 $ 954,740
Account Groups
General General
Fixed Long-Term (Memorandum
Assets Debt Only)
$ 1,380,158
4,556,497
423,341
61,271
185,326
24,925
3,552,650
$ 3,552,650
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1,959,144
$ 1,959,144
165,513
9,915,254
144,600
11,796,091
1,959,144
$ 30,612,120
(Continued)
VILLAGE OF TEQUESTA, FLORIDA
Combined Balance Sheet -
All Fund Types and Account Groups
September 30,1998
(Continued)
Governmental Fund Types
Special Capital
General Revenue Projects
Liabilities, equity and other credits
Liabilities
Accounts payable $ 87,178 $ $
Accrued liabilities 146,774
Other liabilities
Payable from restricted assets
Deposits
Due to other funds 43,239 2,810
Due to other governments 8,186
Deferred revenue 40 50,358
Contracts payable
Current portion of
Notes payable
Credit line
Compensated absences
Obligations under capitalized leases
Notes payable
Improvement revenue bonds payable
Water revenue bonds payable
Total liabilities $ 285,417 $ 50,358 $ 2,810
18
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Proprietary Fiduciary
Fund Type .Fund Type Account Groups
General General
Fixed Long-Term (Memorandum
Enterprise Trust Assets Debt Only)
$ 173,874 $ 6,371 $ $
67,399
1,418
248,740
9,475 5,747
23,650
1,680,571
86,687
3,868
50,001
115,442 335,009
446,913
8,661 12,221
1,115,000
7,736,256
$ 10,154,623 $ 13,536 $ $ 1,959,144
19
$ 267,423
214,173
1,418
248,740
61,271
31,836
1,730,969
86,687
3,868
50,001
450,451
446,913
20,882
1,115,000
7,736,256
$ 12,465,888
(Continued)
VILLAGE OF TEQUESTA, FLORIDA
Combined Balance Sheet -
All Fund Types and Account Groups
September 30,1998
(Continued)
Equity and other credits
Investments in general fixed assets
Contributed capital
Retained earnings
Reserved for capital improvements
Unreserved
Fund balances
Reserved for:
Inventory
Law enforcement and fire rescue
Employees' pension benefits
Recreation and parks
Encumbrances
Unreserved designated for:
Compensated absences
Disaster emergency relief
Road project
Undesignated
Total equity and other credits
Governmental Fund Types
Special Capital
General Revenue Projects
7,864
39,093
18,722
19,800
62,282
50,000
29,120
1,059,909
~ nni r-rnn
en nn~
Total liabilities, equity and other credits $1,572,207 $ 99,229
20
114,957
120,880
52,138
287,975
$ 290,785
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Proprietary Fiduciary
Fund Type Fund Type Account Groups
General General
Fixed Long-Term (Memorandum
Enterprise Trust Assets Debt Only)
$ $ $ 3,552,650 $ $ 3,552,650
4,477,457 4,477,457
1,240,288 1,240,288
6,310,997 6,310,997
7,864
12,028,742
$ 22,183,365
6,545 45,638
934,659 934,659
18,722
134,757
62,282
50,000
150,000
1,160,918
941,204 3,552,650 18,146,232
$ 954,740 $ 3,552,650 $ 1,959,144 $ 30,612,120
See notes to financial statements.
21
VILLAGE OF TEQUESTA, FLORIDA
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances -
All Governmental Fund Types and Expendable Trust Fund
For the Fiscal Year Ended September 30,1998
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeits
Interest
Miscellaneous
Impact fees
Intragovernmental
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, 1997
Fund Balances, September 30, 1998
Governmental Fund Types
Special Capital
General Revenue Projects
$3,181,246 $361,637 $
14,455 74,748
485,648
273,779
72,971
82,431
8,566
1,525
190,650
4,311,271
964,623
2,572,384
413,501
1,255
243,768
228,936
68,071
30,008
4,522,546
(211,275)
9,354
436,385 9,354
138,960
70,000
72,866 11,284
142,866 150,244
293,519 (140,890)
50,001
9,207
425,410
(217,669)
216,948
5,673
1,281,117
$1,286,790
22
60,300 175,000
344,510
284,210 225,001
9,309 84,111
39,562 203,864
$ 48,871 $ 287,975
[~I
n
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Fiduciary
Fund Type Totals
Expendable (Memorandum
Trust Fund Only)
$ $ 3,542,883
89,203
485,648
273,779
1,670 74,641
91,785
8,566
1,525
190,650
1,670 4,758,680
964,623
2,572,384
413,501
1,255
243,768
367,896
138,071
114,158
4,815,656
1,670 (56,976)
50,001
9,207
660,710
(562,179)
157,739
1,670 100,763
4,875 1,529,418
$ 6,545 $ 1,630,181
See notes to financial statements.
23
1
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, 1998
General Fund
Vanance
Favorable
Budget Actual (Unfavorable)
Revenues
Taxes $3,152,875 $3,181,246 $ 28,371
Licenses and permits 11,500 14,455 2,955
Intergovernmental 463,330 485,648 22,318
Charges for services 247,047 273,779 26,732
Fines and forfeits 75,500 72,971 (2,529)
Interest 80,000 82,431 2,431
Miscellaneous 5,000 8,566 3,566
Impact fees 1,525 1,525
Intragovenmental 183,120 190,650 7,530
Total revenues 4,218,372 4,311,271 92,899
Expenditures
Current
General government 965,285 964,623 662
Public safety 2,599,865 2,572,384 27,481
Transportation 483,655 413,501 70,154
Human services 4,850 1,255 3,595
Culture/Recreation 248,395 243,768 4,627
Capital outlay 277,172 228,936 48,236
Debt service
Principal retirement 68,079 68,071 8
Interest 30,012 30,008 4
Total expenditures 4,677,313 4,522,546 154,767
Excess of revenues over (under) expenditures (458,941) (211,275) 247,666
Other financing sources (uses)
Debt proceeds/notes payable
Sales of surplus materials 3,000 9,207 6,207
Contingency (1,673) 1,673
Operating transfers in 425,410 425,410
Operating transfers out (217,669) (217,669)
Total other financing sources (uses) 209,068 216,948 7,880
Excess of revenues and other sources over
(under) expenditures and other uses $ (249,873) 5,673 $ 255,546
Fund Balances, October 1, 1997 1,281,117
Fund Balances, September 30, 1998 $1,286,790
24
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n
1
1
1
1
1
1
1
1
1
1
1
1
1
Special Revenue Fund Capital Project Funds
Variance Variance
Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
$ 336,910 $ 361,637 $ 24,727 $ $ $
75,000 74,748 (252)
2,000 9,354 7,354
411-,910 436,385 24,475 2,000 9,354 7,354
519,715 138,960 380,755
70,000 70,000
72,880 72,866 14 12,630 11,284 1,346
142,880 142,866 14 532,345 150,244 382,101
269,030 293,519 24,489 (530,345 14( 0,890) 389,455
350,000 50,001 (299,999)
60,300 60,300
(344,510) 344,510)
(284,210) (284,210)
$ (15,180) 9,309
39,562
$ 48,871
175,000 175,000
525,000 225,001 (299,999)
$ 24,489 $ (5,345 84,111 $ 89,456
203,864
$287,975
(Continued)
25
VILLAGE OF TEQUESTA, FLORIDA
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances -Budget and Actual
Governmental Fund Types
For the Fiscal Year Ended September 30,1998
(Continued)
Totals (Memorandum Onl
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeits
Interest
Miscellaneous
Impact fees
Intragovernmental
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
Contingency
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, 1997
Fund Balances, September 30, 1998
Variance
Favorable
Budget Actual (Unfavorable)
$3,489,785 $3,542,883 $ 53,098
86,500 89,203 2,703
463,330 485,648 22,318
247,047 273,779 26,732
75,500 72,971 (2,529)
82,000 91,785 9,785
5,000 8,566 3,566
1,525 1,525
183,120 190,650 7,530
4,632,282 4,757,010 124,728
965,285 964,623 662
2,599,865 2,572,384 27,481
483,655 413,501 70,154
4,850 1,255 3,595
248,395 243,768 4,627
796,887 367,896 428,991
138,079 138,071 8
115,522 114,158 1,364
5,352,538 4,815,656 536,882
(720,256) (58,646) 661,610
350,000 50,001 (299,999)
3,000 9,207 6,207
(1,673) 1,673
660,710 660,710
(562,179) (562,179)
449,858 157,739 (292,119)
$ (270,398) 99,093 $ 369,491
1,524,543
$1,623,636
See notes to financial statements.
26
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1
1
n
ii
1
1
VILLAGE OF TEQUESTA, FLORIDA
Combined Statement of Revenues, Expenses and
Changes in Retained Earnings- Proprietary Fund Type
For the Fiscal Year Ended September 30,1998
Proprietary
Fund Type
Enterprise
Operating revenues
Charges for services $ 3,821,056
Licenses and permits 284,140
Total operating revenues 4,105,196
Operating expenses
Purchased services 965,217
Personal services 958,719
Professional services 381,880
Contractual services 129,291
Travel and per diem 13,334
Management services 184,765
Office supplies 27,220
Operating supplies 57,176
Repairs and maintenance 227,831
Utilities 96,748
Insurance 40,177
Other 9,509
Depreciation 382,487
Total operating expenses 3,474,354
Operating income (loss) 630,842
Nonoperating revenues (expenses)
Interest income 496,433
Net appreciation in fair value of investments 35,335
Interest expense and fiscal charges (223,044)
Community aid donation (6,500)
Gain on sale of land 12,399
Total nonoperating revenues (expenses) 314,623
Income before operating transfers 945,465
Operating transfers
Operating transfers in 176,769
Operating transfers out (275,300)
Total operating transfers in (out) (98,531)
Net income 846,934
Retained earnings, October 1, 1997,
as restated 6,704,351
Retained earnings, September 30, 1998 $ 7,551,285
See notes to financial statements.
27
VILLAGE OF TEQUESTA, FLORIDA
Combined Statement of Changes in Plan Net Assets
Pension Trust Funds
Fiscal Year Ended September 30,1998
Additions
Contributions
Employer
Plan members
Other
Total contributions
Investment income
Net appreciation in fair value of investments
Interest
Net investment income
Total additions
Deductions
Refunds of contributions
Administrative expense
Total deductions
Net Increase
Fund balance reserved for employees' pension benef ts,
October 1, 1997
Fund balance reserved for employees' pension benefits,
September 30, 1998
See notes to financial statements.
28
$ 122,843
48,349
62,669
233,861
68,302
22,556
90,858
324,719
21,691
11,075
32,766
291,953
642,706
$ 934,659
VILLAGE OF TEQUESTA, FLORIDA
Combined Statement of Cash Flows -Proprietary Fund Type
For the Fiscal Year Ended
September 30,1998
Proprietary
Fund Type
Enterprise
Cash flows from operating activities:
Net operating income (loss) $ 630,842
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation 382,487
Changes in assets and liabilities
(Increase) decrease in:
Accounts receivable (40,359)
Due from other funds (16,793)
Inventories 7,255
Increase (decrease)in:
Accounts payable 8,520
Accrued liabilties 32,521
Deposits 16,741
Deferred revenue 638,341
Compensated absences 23,473
Due to other funds 9,475
Due to other governments 27,082
Net cash provided by operating activities 1,719,585
Cash flows from noncapital financing activities:
Operating transfers from other funds 176,769
Operating transfers to other funds (275,300)
Contribution 6,500)
Net cash (used) for noncapital financing activities (105,031)
29
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1
1
Cash flows from capital and related fmancing activities:
Capital Contributions
Acquisition and construction of fixed assets
Proceeds from land sale
Revenue bonds proceeds
Principal paid on notes payable
Interest paid on notes payable
Interest paid on revenue bonds
Fiscal charges paid on revenue bonds
Payment on construction contracts
Net cash provided by capital and related
financing activities
Cash flows from investing activities:
Purchases of investments
Interest received on investments
Net cash used for investing activities
Net increase in cash and cash equivalents
Cash and cash equivalents, October 1, 1997
Cash and cash equivalents, September 30, 1998
Noncash Investing, Capital and Financin~Activities
Capital grant receivable -storm water fund
Noncash capital contribution from developers
See notes to financial statements.
30
Proprietary
Fund Type
Enterprise
$ 114,638
(832,334)
12,399
7,726,471
(3,589)
(1,187)
(198,789)
(157,883)
(91,596)
6,568,130
(9,328,039)
492,717
(8,835,322)
(652,638)
1,942,770
$ 1,290,132
$ 181,031
$ 136,361
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 1-SUMMARY 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 fmancial 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' Retirement System„ there are no additional governmental departments,
agencies, institutions, commissions, public authorities or other governmental organizations
operating within the jurisdiction of the Village that would be required to be included in the general
purpose financial statements of the Village.
The Village Employees' Retirement S sy tem
The Village's full-time firefighters and any new hire employees on or after
January 1, 1996, are eligible to participate in the Village Employees' Retirement
System (the "Plan"). The Plan 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 Plan members are obligated to fund all Plan costs based upon
actuarial valuations, with the Village funding the difference between member and
other contributions and the actuarial cost. Considering these factors, it has been
31
1
' VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The Reporting Entity (Continued)
' The Village Employees' Retirement System (Continued)
determined that the Plan is fiscally dependent on the Village of Tequesta, which
makes the Plan a component unit of the Village. Since the Plan provides services
exclusively for the benefit of the Village, the Plan is reported as a blended
component unit, specifically as the Village Employees' Retirement System. This
' component unit does not issue a stand alone financial report.
Basis ofPresentation -Fund Accounting
' The government uses funds and account grou s to r ort on its financial osition and the results of
P ~ P
its operations. Fund accounting is designed to demonstrate .legal compliance and to aid financial
' management by segregating transactions related to certain government functions or activities.
A fund is a separate accounting entity with aself-balancing set of accounts. An account group, on
' the other hand, is a financial reporting device designed to provide accountability for certain assets
and liabilities that are not recorded in the funds because they do not directly affect net expendable
available financial resources.
' Funds are classified into three categories: governmental, roprietary and fiduciary. Each category,
p
in turn, is divided into separate "fund types".
I The followin are the fund cate ories, funds and account ou s used b the Villa e:
g g ~' P Y g
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.
' 32
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Governmental Fund Tvpes (Continued)
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 Enterprise Funds).
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.
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 Village has established four Enterprise Funds as follows:
Community Development Fund
Storm Water Utility Fund
Refuse and Recycling Fund
Water Fund
33
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1
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Basis o~'Presentation -Fund Accounti ~ (Continued)
Fiduciary Fund Types
Pension Trusts and Expendable Trust
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
govennent under the terms of a formal trust agreement.
The Pension Trust Funds are accounted for in essentially the same manner as the
proprietary funds, using the same measurement focus and basis of accounting.
The Village has three pension trust funds as follows:
Firefighter's Pension Trust Fund
Police Officer's Pension Trust Fund
General Employee's Pension Trust Fund
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 maybe spent.
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.
34
fl
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) ,
Basis of Presentation -Fund Accounting (Continued) ,
Account Groups
General Fixed Assets Account Group ,
The accounting and reporting treatment applied to the fixed assets associated with a
fund are determined by its measurement focus. All governmental funds are
accounted for on a spending or "financial flow" measurement focus. This means
that only current assets and current 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 fmancing sources) and decreases (expenditures and ,
other financing uses) in net current assets. Accordingly, they are said to present a
summary of sources and uses of "available spendable resources" during a period.
Fixed assets used in governmental fund type operations (general fixed assets) are
accounted for in the General Fixed Assets Account Group, rather than in 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 $750 or more and have expected lives of greater
than one year. No depreciation has been provided on general fixed assets. All fixed '
assets are valued at historical cost or estimated historical cost if actual historical cost
is not available. Donated fixed assets are valued at their estimated fair market value
on the date donated.
General Long-Term Debt Account Group
Lon -term liabilities ex ected to be financed from overnmental funds are '
g p g
accounted for in the General Long-Term Debt Group, not in the governmental
funds. '
35 '
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1
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Account Groups (Continued)
General Long-Term Debt Account Group (Continued)
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
fmancial position. They are not involved with measurement of results of operations.
Basis o Accounting
The accounting and financial reporting treatment applied to a fund is determined by its
measurement focus. All governmental funds and expendable trust funds are accounted for using a
current financial resources measurement focus. With this measurement focus, only current assets
and current liabilities generally are included on the balance sheet. Operating statements of these
funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures
and other financing uses) in net current assets.
All proprietary funds and pension trust funds are accounted for on a flow of economic resources
measurement focus. With this measurement focus, all assets and all liabilities associated with the
operation of these funds are included on the balance sheet. Fund equity (i.e., net total 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.
' 36
VILLAGE OF TEQUESTA, FLORIDA ,
Notes to Financial Statements
September 30,1998
1
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) '
Basis o Accounting (Continued) ,
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.
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 funds. 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 dunng 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.
~i
37 ,
1
' VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
' NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
' Budgets and Budgetary Accounting (Continued)
Budgets for the General, Special Revenue and Capital Project Funds are adopted on a basis
' consistent with generally accepted accounting principles. 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.
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.
1 Chan es or amendments to the total bud eted fund ex enditures must be a roved b the Villa e
g g p pP Y g
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 of adopting balanced budgets. 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.
' 38
1
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements ,
September 30,1998
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) '
Bets and Budgetary Accounting (Continued)
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. '
Cash and Cash Equivalents
h
i
i ,
nvestments w
t
Cash and cash equivalents include cash on hand, demand deposits, and short-term
maturities of three months or less when purchased.
Investments
U.S. Government Securities ,
U.S. government securities are stated at market value.
,
Corporate Bonds and Stock
Corporate bonds and stock are stated at market value. '
Accounts Receivable
'
Accounts receivable of the Water Fund and Refuse and Recycling Fund consists of billed and
unbilled receivables.
1
39
1
VII,LAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Inventories
1
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 invento-
ries are equally offset by a fund balance reserve which indicates that they do not constitute
"available spendable resources" even though they are a component of net current assets.
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 sidewallcs, drainage systems, and lighting
systems, are not capitalized.
Property and equipment acquired or constructed for general governmental operations are recorded
as expenditures in the fiend 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 fixed 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
' 40
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Amortization
The issue costs and debt discount on long-term debt are amortized over the life of the bonds using
the straight-line method.
Ad Valorem Taxes
Ad valorem taxes are assessed and liened as of January 1 and billed the following October. They
are due and payable on November 1 of each year or as soon thereafter as the assessment roll is
certified and delivered to the Tax Collector. These taxes are collected by the County and remitted
to the Village. Revenue is recognized at the time monies are received from the County. All unpaid
taxes become delinquent on April 1 following the year in which they are assessed.
Discounts are allowed for early payment at the rate of 4% in the month of November, 3% in the
month of December, 2% in the month of January and 1% in the month of February. The taxes paid
in March are without discount. At September 30, unpaid delinquent taxes, if any, are reflected as a
receivable on the balance sheet and as deferred revenue.
Interfund Transactions
Following is a description of the basic types of interfund transactions made during the year and the
related accounting policy:
Transactions for services rendered or facilities provided. These transactions are
recorded as revenue in the receiving fund and expenditures in the disbursing fund.
Transactions to transfer revenue or contributions from the fund budgeted to receive
them to the fund budgeted to expend them. These transactions are recorded as
operating transfers in and out.
Transactions to loan funds from the fund budgeted to loan them to the fund
budgeted to receive them. These transactions are recorded as advances to and from.
41
1
1
1
' VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
' 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 overnmental and similar trust funds, coin ensated absences that are expected to be
g p
liquidated with expendable available financial resources, are reported as an expenditure and fund
liability in the fund that will pay for them. The remainder of the compensated absences liability is
reported in the General Long-Term Debt Account Group.
' In the proprietary funds and similar trust funds, compensated absences are recorded as an expense
and liability of the fund that will pay for them.
Interest Capitalization
The Financial Accounting Standards Board issued Statements of Financial Accounting Standards
(FAS) No. 34, requiring capitalization of interest costs for all assets that are constructed for an
enterprise's use. The amount of interest to be capitalized is that portion of the interest incurred
' during the asset's acquisition period which theoretically could have been avoided if expenditures for
the asset had not been made.
' 42
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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. Interfimd
eliminations have not been made in the aggregation of this data.
Statement o~'Cash Flows
For purposes of the statement of cash flows, the proprietary fund types consider all highly liquid
investments (including restricted assets) with a maturity of three months or less when purchased to
be cash equivalents, except for those investments which management intends to be long-term
investments.
NOTE 2 -CASH AND INVESTMENTS
Cash and Cash Equivalents
At year end, the carrying amount of the Village's deposits was $663,933 and the bank balances
were $1,020,371. Cash consists of unrestricted and restricted funds entirely covered by federal
depository insurance or by a multiple fmancial institution collateral pool that insures public
deposits. The collateral pool exists pursuant to the Florida Security for Deposits Act, Chapter 280,
which consists of assets pledged to the State Treasurer by financial institutions that comply with the
requirements of Florida Statutes and have been thereby designated as a qualified public depository.
These deposits are deemed to be insured for risk categorization purposes.
Investments
Florida statutes authorize the Village to invest surplus funds in the Local Government Surplus
Funds Trust Fund, administered by the State Treasurer; negotiable direct obligations of or
obligations unconditionally guaranteed by the U.S. Government; interest-bearing time deposits in
financial institutions located in Florida and organized under Federal or Florida laws; obligations of
the Federal Farm Credit Banks, the Federal Home Loan Mortgage Corporation, the Federal Home
Loan Bank or its district banks, or obligations guaranteed by the Government National Mortgage
Association and obligations of the Federal National Mortgage Association.
43
1
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 2 -CASH AND INVESTMENTS (Continued)
Investments (Continued)
Investments (including restricted investments) consist of funds held with the state investment pool,
' obligations of the United States government and funds held by an outside custodian on behalf of the
Pension Trust Funds.
' The Village currently has two investment groups of United States obligations, one of which
consists of bond proceeds from the Series 1998 Bond issuances. The proceeds were invested in
U.S. Obligations until construction draw downs are necessary. Additionally, the Village has
' continued to hold U.S. Treasury obligations which were previously required to be purchased by the
1985 Water Refunding Revenue Bonds.
' The Village's investments are categorized below to give an indication of the level of custodial
credit risk assumed by the Village at year-end.
Category 1 - Insured or registered, or securities held by the Village or its agent in the Village's
name.
' Category 2 - Uninsured and unregistered, with securities held by the counterparty's trust
department or agent in the Village's name.
f Category 3 - Uninsured and unregistered, with securities held by counterparty, or by its trust
department or agent but not in the Village's name.
i
1
' 44
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
1
NOTE 2 -CASH AND INVESTMENTS (Continued)
Investments (Continued)
Category Carrying Market
3 Amount Value
Obligations of United States
Government $ 8,904,917 $ 8,904,917 $ 8,904,917
Investment in:
Corporate bonds 154,779 154,779 154,779
Government backed securities 209,298 209,298 209,298
Corporate stock 408,447 408,447 408,447
Subtotal $ 9,677,441 9,677,441 9,677,441
Mutual funds 84,705 84,705
Mutual funds (money market) 881,738 881,738
State investment pool 4,709,605 4,709,605
$ 15,353,489 $ 15,353,489
The state investment pool, administered by the State Board of Administration of Florida, contained
certain floating rate notes during the 1998 fiscal year and as of September 30, 1998, which were
indexed based on the prime rate and/or one and three month LIBOR rates. These investments,
representing approximately 10.96% of the state investment pool portfolio at September 30, 1998,
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/
Deposits Investments
Cash and cash equivalents $1,380,158 $
Investments 4,556,497
Restricted assets
Cash and cash equivalents 165,513
Investments 9,915.254
Balance sheet totals 1,545,671 14,471,751
Adjustments
Mutual funds (money market) 881 738 881,738
Risk categorization totals 663 933. $ 15,353,489
45
1
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J
1
' VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
' NOTE 3 -CHANGES 1N ACCOUNTING METHODS
t During 1998, the Village increased the fixed asset capitalization threshold from $500 to $750. At
that time all assets having a cost of less than $750 were deleted from the General Fund Asset
Account Group and enterprise funds.
' The Village also implemented GASB 31 Accounting and Financial Reporting for Certain
Investments and External Investment Pools during 1998. This statement applies to all
' governmental entities other than external investment pools, defined benefit pension plans, and
Internal Revenue Code Section 457 deferred compensation plans. Due to the change in accounting
method, the Village will account for all investments at fair market value instead of cost.
The beginning retained earnings as of October 1, 1997, has been restated to recognize these changes
as follows:
' Community
Development
' Fund Water Fund
Retained earnings, October 1, 1997
' as previously reported $282,738 $6,235,551
Increase due to change in accounting for
' investments 89,451
' Decrease due to change in capitalization
policy of fixed assets 5 530 (11,738)
' Retained earnings, October 1, 1997
as restated 277 208 $6,313,264
' The current year effect of the change in accounting for investments was to increase net investment
income in the Water Fund for $35,335. The change in capitalization policy of fixed assets had no
significant current year effect.
46
i
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements '
September 30,1998
~.
NOTE 4 -RESTRICTED ASSETS '
Restricted assets as of September 30, 1998, consist of the following accounts: '
Cash Investments Total
Meter Deposit Accounts $ 258,286 $ $ 258,286 '
Capital Improvement
Accounts 513,032 229,600 742,632
Debt Service Account 32,478
32,478 ,
Construction Account (638,283) 7,753,300 7,115,017
Renewal and Replacement Account 137,145 137,145
Impact Fee Account 114,638
114,638 '
Jupiter Water Increase Account 1.680,571 1.680.571
254
915
165 513 $ 9 $10
080
767 '
,
, ,
,
CCOUNTS RECEIVABLE
ENTERPRISE FUNDS
NOTE 5 '
-A
-
Enterprise Funds accounts receivable consists of the following: ,
Billed services $312,699
Unbilled services 49.409 '
Total accounts receivable- 362,108
Less allowance for uncollectibles 25 000 '
Net accounts receivable 337 108
1
47 ,
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 6 -COMPONENTS OF FIXED ASSETS
A summary of changes in general fixed assets follows:
Balance
October 1, Balance
1997, as September 30,
Restated Additions Deletions 1998
Land $ 397,653 $ $ $ 397,653
Buildings 1,004,1.39 102,120 1,106,259
Improvements other
than buildings 258,777 258,777
Equipment 1,851,294 99,888 222,624 1,728,558
Construction in progress 23,516 37,887 61,403
3 535 379 239 895 222 624 3 552 650
During 1998, the Village increased the fixed asset capitalization threshold from $500 to $750. At
that time all assets having a cost of less than $750 were deleted from the General Fixed Asset
Account Group and enterprise funds. In addition, it was determined that there were
misclassifications of assets. The changes are reported as adjustments to beginning balance of fixed
assets. The adjustments at October 1, 1997, were as follows:
General Fixed Assets
Land
Building
Improvements Other Than
Building
Equipment
Construction in Progress
Balance Capitalization Misclassi-
October 1, Policy fication
1997 Adjustment Adjustment
$ 397,653 $ $
990,101 14,038
258,777
1,962,288 (96,956)
23,516
$ 3,632,335 $ (96,956)
48
(14,038)
Balance,
October 1,
1997,
As Restated
$ 397,653
1,004,139
258,777
1,851,294
23,516
$ 3,535,379
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 6 -COMPONENTS OF FIXED ASSETS (Continued)
Enterprise Funds
Balance,
Balance Capitalization October 1,
October 1, Policy 1997
1997 Adjustment As Restated
Land $ 83,336 $ $ 83,336
Building 975,957 (520) 975,437
Improvements other than
buildings 9,687,004 (26,109) 9,660,895
Equipment 445,167 (17,445) 427,722
Construction in progress 1,531,234 1,531,234
$12,722,698 $ (44,074) $ 12,678,624
The components of fixed assets at September 30, 1998, are summarized as follows:
General
Enterprise Fixed Assets
Funds Account Groun Total
Land $ 83,336 $ 397,653 $ 480,989
Buildings 975,437 1,106,259 2,081,696
Improvements other than
buildings 10,445,824 258,777 10,704,601
Machinery and equipment 385,654 1,728,558 2,114,212
Construction in progress 1,803,365 61,403 1,864,768
13,693,616 3,552,650 17,246,266
Accumulated depreciation (5,450,175 (5,450.1751
Total $ 8,243,441 $3,552,650 $11,796.091
49
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1
1
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1
VII.LAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 6 -COMPONENTS OF FIXED ASSETS (Continued)
Significant construction commitments as of September 30, 1998, are as follows:
Estimated Estimated
Cost Cost to Completion
Description to Date Complete Date
Enterprise Funds
Water Fund:
Reverse Osmosis Treatment
Plant - engineering, design
and permitting
Reverse Osmosis Wells -
Phase I - engineering and
design
Reverse Osmosis Project -
disposal transmission main
Storm Water Utility Fund:
Tequesta Drive Drainage
Division Project
Governmental Funds
Bond Construction Fund:
Public Safety Facility
$1,200,076 $6,250,000
318,646
86,733
197,910
61,403
50
10,000
548,022
328,000
November 1999
October 1998
November 1998
March 1999
1,497,000 Apri12001
VILLAGE OF TEQUESTA, FLORIDA '
Notes to Financial Statements
September 30,1998
NOTE 7 -CAPITALIZED INTEREST/INTEREST EXPENSE '
For the year ended September 30, 1998, the Village capitalized $4,742 of interest cost in the Water '
Fund. The total interest expense incurred for the Water Fund prior to capitalization for the year
ended September 30, 1998, was $203,531.
NOTE 8 -FLORIDA RETIREMENT SYSTEM
Plan Description
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-living
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.
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, 1998, were as
follows: regular employees - 16.45%, special risk employees - 25.32%, and senior management -
24.04%. 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 1998
were $363,567, $399,558, $378,070, and $385,219, respectively, which were equal to the required
contributions for each fiscal year. '
51
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 9 -VILLAGE EMPLOYEE'S RETIREMENT SYSTEM
The Village maintains asingle-employer, defined benefit pension retirement system. The
retirement system provides benefits to all full-time firefighters, as well as any full-time police
officers or general employees hired January 1, 1996 or thereafter. The retirement system was
established by the Village and is administered by a separate board of trustees. The retirement
system receives contributions that may not be used to pay the benefits of all employee classes. Due
to this restriction, for financial statement purposes, three separate plans are shown as pension trust
funds. The Village Employees' Retirement System administers the following plans: The
Firefighter's Pension Trust Fund, The Police Officer's Pension Trust Fund and the General
Employee's Pension Trust Fund. The three pension trust funds do not issue stand alone financial
statements and have been included in the financial statements of the Village as pension trust funds.
SUNIlVIARY OF SIGNIFICANT ACCOUNTING POLICIES
Pension Trust Funds
1 Basis of Accounting. The pension trust funds are reported on the accrual basis of accounting. Plan
member and state contributions are recognized as revenues in the period that the contributions are
due. Employer contributions to each plan are recognized when due and the employer has made a
' formal commitment to provide the contributions. Benefits and refunds are recognized when due
and payable in accordance with the terms of each plan.
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 valued at the last reported sales price at current exchange rates.
' Concentration o Investments. The Plan did not have an investments of 5% or more in an one
Y Y
organization.
PLAN DESCRIPTION AND CONTRIBUTION INFORMATION
The following descnptions of the Pension Trust Funds are provided for general mformation
purposes only. Plan members should refer to the appropriate source documents for more complete
' information on the plans.
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' S2
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 9 -VILLAGE EMPLOYEE'S RETIREMENT SYSTEM (Continued)
PLAN DESCRIPTION AND CONTRIBUTION INFORMATION (Continued)
Membership of each plan consisted of the following at October 1, 1995, the date of the latest
actuarial valuation:
FPTF PPTF GPTF
Retirees and beneficiaries currently receiving
benefits and terminated employees entitled to
benefits but not yet receiving them
Active employees:
Vested
Non-vested 17 1 7
Total 17 1 7
Fire^fighter's Pension Trust Fund
Plan Descriptions -Any firefighter who completes ten or more years of credited service and attains
age 55, or completes 25 years of credited service and attains age 52 is eligible for normal retirement
benefits. The monthly amount of normal retirement income for a firefighter is equal to the number
of years of credited service multiplied by 3% of his average final compensation. Early retirement
may be taken after a firefighter has attained the age of 50 and has ten years of credited service. In
the event of early retirement, benefits are actuarially reduced to take into account the firefighter's
younger age and earlier commencement of retirement benefits. Such reduction shall not exceed 5%
per year. Disability benefits can be received for total and permanent disabilities as determined by
the Board of Trustees. If the pension is granted, the benefit amount shall be:
If the injury or disease. is service connected, the firefighter shall be entitled to the greater of (a) or
ro):
(a) A monthly pension equal to 42% of his average compensation, or
53
1
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 9 -VILLAGE EMPLOYEE'S RETIREMENT SYSTEM (Continued)
' Firefighter's Pension Trust Fund (Continued)
(b) An amount equal to the number of years of his credited service
' multiplied by 3% of his average monthly salary based upon his final
five years of service.
' If the injury or disease is not service connected, the firefighter shall be entitled to the greater of (a)
or (b):
(a) A monthly pension equal to 25% of his average compensation, 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 dies prior to retirement from the Village his beneficiary shall receive the following
benefit:
(a) Line-of-Duty-Death-Benefit - a pension to the spouse (or children)
of 50% of Average Compensation for life.
(b) Non-Line-of-.Duty-Death, the spouse of a member with ten years of
credited service will receive the actuarial equivalent of the accrued
early or normal retirement benefit.
If the firefighter dies or termmates employment with less than ten years of credited service, he is
' entitled to a refund of the money contributed.
Fundang` olacy -Firefighters 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, 1998, was $115,319. The Village's and the state contributions were $101,403 and
' $37,535, respectively.
i 54
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 9 -VILLAGE EMPLOYEE'S RETIREMENT SYSTEM (Continued)
Police Officer's Pension Trust Fund
Plan Descriptions -Any 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 police officer is equal
to the number of years of credited service multiplied by 3% of his average final compensation.
Eazly retirement may be taken after a police officer has attained the age of 50 and has ten yeass of
credited service. In the event of eazly retirement, benefits are actuarially reduced to take into
account the police officer's younger age and eazlier commencement of retirement benefits. Such
reduction shall not exceed 3% per yeaz. Disability benefits can be received for total and permanent
disabilities as determined by the Boazd of Trustees. If the pension is granted, the benefit amount
shall be:
If the injury or disease is service connected, the 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 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 yeass of service.
55
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VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 9 -VILLAGE EMPLOYEE'S RETIREMENT SYSTEM (Continued)
Police Officer s Pension Trust Fund (Continued)
If the police officer dies prior to retirement from the Village his beneficiary shall receive the
following benefit:
(a) Line-of-Duty-Death-Benefit - a pension to the spouse (or children)
of 50% of Average Compensation for life.
(b) Non-Line-of-Duty-Death, the spouse of a member with ten years of
credited service will receive the actuarial equivalent of the accrued
early or normal retirement benefit.
If the police officer dies or terminates employment with less than ten years of credited service, he is
entitled to a refund of the money contributed.
' Funding Policy -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 entry age actuarial cost method as approved by the plan's Board of Trustees; however,
contribution requirements of plan members and the Village are established and maybe amended by
the Village Council. The Village's required and actual contribution rate for the fiscal year ended
' September 30, 1998, was $25,134. The Village's and the state contributions were $8,000 and
$25,134, respectively.
' General Emplovee's Pension Trust Fund
Plan Descriptions -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 actuanally
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:
i~
1 56
VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 9 -VILLAGE EMPLOYEE'S RETIREMENT SYSTEM (Continued)
General Employee's Pension Trust Fund (Continued)
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 fmal five years of service, or
(b) An amount equal to the number of years of his credited service
multiplied by 2% of his average monthly salary based upon his final
five years of service.
If the injury or disease is 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% 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 Policy -General employees are required to contribute 5% of their compensation to the
plan. The Village is required to contribute the remaining amount to fund the plan using the entry
age 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,
1998, was $13,440 and the dollar amount of the Village's contribution was $13,440
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VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 9 -VILLAGE EMPLOYEE'S RETIREMENT SYSTEM (Continued)
Annual Pension Cost and Net Pension Obligation
The Village's 1998 annual pension cost and actual contributions for each plan are shown below.
The required contributions were determined as part of the October 1, 1995, actuarial valuation for
each plan.
Annual Village State
Pension Actual Actual
Cost Contribution Contribution
Firefighter's Pension Trust Fund $115,319 $101,403 $37,535
Police Officer's Pension Trust Fund 25,134 8,000 25,134
General Employee's Pension Trust Fund 13,440 13,440
Three Year Trend Information
Annual Percentage Net
Pension of APC Pension
Cost APC) Contributed Obli ag tion
Firefighter's Retirement Svstem
1996 $85,503 117.00% $-0-
1997 107,078 106.38 -0-
1998 115,319 120.48 -0-
Police Officer's Retirement S s
1996 $ $-0-
1997 20,140 100.00% -0-
1998 25;134 131.83 -0-
General Employee's Retirement System
1996 $ $-0-
1997 11,399 100.00% -0-
1998 13,440 100.00 -0-
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VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 9 -VILLAGE EMPLOYEE'S RETIREMENT SYSTEM (Continued)
Annual Pension Cost and Net Pension Obligations (Continued)
The following are the actuarial methods and significant assumptions:
Police General
Firefighter's Officer's Employee's
Pension Fund Pension Fund Pension Fund
Valuation date 10/1/1995 10/1/1995 10/1/1995
Actuarial Cost Method Aggregate Entry Age Entry Age
Amortized Method (1) (2) (2)
Remaining Amortization Period (1) (2) (2)
Asset Valuation Method Four year Four year Four year
Averaged averaged averaged
Market market market
Administrative Costs Included in Included in Included in
Calculation of Calculation of Calculation of
normal cost normal cost normal cost
Actuarial Assumption:
Investment rate of return 8% 8% 8%
Projected salary increase 6% 6% 6%
Includes inflation at 4% 4% 4%
Cost of living adjustments 0% 0% 0%
(1) When the aggregate actual cost method is used, unfunded actuarial liabilities are not
identified or separately amortized.
(2) This applies only when unfunded liabilities exist. The Villlage had no unfunded liabilities
at September 30, 1998.
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VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 10 -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 full time 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. The Village's Deferred
Compensation Plan has funds held by the ICMA Retirement Corporation.
In January 1998, the ICMA Deferred Compensation Plan was amended to conform with the
changes in the Internal Revenue Code brought about by the Small Business Job Protection Act of
1996. (the "Act"). The Act requires that eligible deferred compensation plans established and
' maintained by governmental employees be amended to provide that all assets of the Plan be held in
trust, or under one or more appropriate annuity contracts or custodial accounts, for the exclusive.
benefit of plan participants and their beneficiaries. As a result of this change, plan assets will no
longer be subject to the claims of the Village's general creditors.
Because the Village has little administrative involvement and does not perform the investing
' function for funds in the ICMA Plan, the Village's activities do not meet the criteria for inclusion in
the fiduciary fiznds of a government. Consequently, the Plan was removed from the Village's
general purpose financial statements.
NOTE 11-COMPENSATED ANNUAL LEAVE AND SICK PAY
As of S tember 30 1998 the total liabili for com ensated absences was $450 451. The
~ tY P
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, 1998, the long-term amount was
$335,009. The liabilities recorded by the Enterprise Funds were $115,442
NOTE 12 -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.
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VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 12 - RISK MANAGEMENT (Continued)
Major uninsurable risks include damages to infrastructure assets. Since the amount of loss cannot
be reasonably- estimated and the likelihood of occurrence is not determinable, no provision for
losses is reflected in the fmancial statements. There were no settled claims which exceeded
insurance coverage during the past three fiscal years.
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 13 -CAPITAL LEASE COMMITMENTS
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 9/30/98 - $280,288
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 9/30/98 - $8,679
Capitalized cost - $20,452
(General Fixed Asset Account Group)
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' VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
' NOTE 13 -CAPITAL LEASE COMMITMENTS (Continued)
' General Fund (Continued)
Ambulances
' Annual payment: $32,094
l0 year term
Expires October 15, 2003
Principal amount outstanding at 9/30/98 - $157,946
Capitalized cost - $180,662
(General Fixed Asset Account Group)
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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, 1998:
Fiscal Year General
Ending Long-Term
September 30. Debt
1999 $ 93,845
2000 93,845
2001 88,752
2002 88,752
2003 88,752
Thereafter 88,752
Total minimum lease payments 542,698
Less: amount representing interest 95.785
Present value of future
minimum lease payments 6 913'
NOTE 14 -LONG-TERM AGREEMENT TO PURCHASE WATER
On July 15, 1976, the Village entered into an agreement with Tri-Southern Utilities Company, Inc.
(the agreement was 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.
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VILLAGE OF TEQUE5TA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 15 -LONG-TERM 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
was 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 space 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 16 -CONTRACTED SERVICES -REFUSE AND RECYCLING COLLECTION
Effective October 1, 1989, the Village entered into a five year franchise agreement with Nichols
Sanitation, Inc. for curbside solid waste and recycling collection services. On October 14, 1993,
the Village amended the franchise agreement. The amendment extended the agreement for an
additional five years commencing October 1, 1994. For consideration of the extension the
collection rates were reduced. In addition, the Village assessed a 6% franchise fee for each
residential customer, effective October 1, 1994. Nichols Sanitation may also adjust the curbside
and recycling rates beginning October 1, 1995, and each October 1, thereafter based upon the
change in the Consumer Price Index "(CPI).
NOTE 17 -CONTRACTED SERVICES -FIRE PROTECTION/EMERGENCY
MEDICAL SERVICE
Effective October 1, 1993, the Village entered into an interlocal agreement with Jupiter Inlet
Colony for the Village to provide fire protection/emergencyrnedical services for a fee. For the year
ended September 30, 1998, fire protection fees received from Jupiter Inlet Colony was $150,027.
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VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 18 -LONG-TERM DEBT
General Long-Term Debt
Changes in general long-term debt of the Village for the year ended September 30, 1998, are
summarized as follows:
Capital Improvement .Line
Compensated Lease Note Revenue of
Absences Obli atg ions Payable Bonds Credit Total
General long-term debt
at October 1,1997 $339,491 $511,484 $15,721 $1,185,000 $ $2,051,696
Additions:
Line of credit 50,001 50,001,
Deletions:
Repayments of debt 64,571 3,500 70,000 138,071
Decrease in accrual
for compensated
absences 4,482 4,482
General long-term debt
at September 30, 1998 335 009 446 913 12 221 $1,115,000 50 001 $1,959.144
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, 1998, $1,115,000 of this issue were outstanding. Any
remaining revenues after principal and interest maybe used for any lawful purpose.
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VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 18 -LONGTERM DEBT (Continued)
Revenue Bonds -1994 (Continued)
Annual requirements to amortize this debt are as follows:
Coupon
October 1, Rate Principal Interest Payments
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 6.15% 90,000 54,120 144,120
2003 6.15% 95,000 48,585 143,585
Thereafter 695,000 157,133 852,133
Totals $1,115,000 451 411 1 566 411
Line o Credit
On June 12, 1987, the Village Council authorized management to enter into a revolving line of
credit for $1,000,000 with Nations Bank. The line of credit bears an interest rate of 60% of Nations
Bank's 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 loan are to be used
to fund capital projects within the Village. As of September 30, 1998, the balance on the line was
$50,001. On January 14, 1999, the Village approved Resolution 11-98/99 authorizing the issuance
of a note in the amount of $5,000,000 and refinanced the $50,001.
Note movable. On August 12, 1997, the Village entered into an installment purchase agreement to
purchase a copy machine. The Village financed $15,721 over a term of 48 months at an interest
rate of 7.5%. As of September 30, 1998, the balance of note was $12,221.
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t VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
' NOTE 18 -LONGTERM DEBT (Continued)
' Water Fund
Note,payable. On August 12, 1997, the Village entered into an installment purchase agreement to
' purchase a copy machine for the Water Department. The Village financed $16,118 over a term of
48 months at an interest rate of 7.51%. As of September 30, 1998, the balance of note was
$12,529.
Water Revenue Bonds -1998
This debt consists of Water Revenue Bonds Series 1998 in the amount of $7,915,000 with a
varying interest rate of 3.8% to 5.125%, dated March 1, 1998. Pursuant to the Bond Resolution,
7-97/98, the Village is obligated to establish and maintain required reserves as noted in Note 19 -
' Required Reserves.
Annual requirements to amortize this debt are as follows:
1
September 30, Principal Interest Payments
'
1999
~ $ $ 389 740 $ 389,740
' 2000
2001 ~~~~ 135,000
140
000 387,175
810
381 522,175
521
810
, , ,
2002 ~ 145,000 376,038 521,038
' 2003
Thereafter 150,000
7,345,000 369,916
5,993,675 519,916
13,338,675
Less unamortized discount (178,744) (178,744
' Total $7,736,256 $7,898,354 $ 15,634,610
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VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 18 -LONG-TERM DEBT (Continued)
Total Long-Term Debt
The-annual requirements to amortize all outstanding debt including interest payments of $8,451,511
as of September 30, 1998, are as follows:
Fiscal
Year Ending
September 30
General
Long-Term Enterprise
Debt Funds
Total
1999 $ 291,981 $ 394,216 $ 686,197
2000 242,367 526,651 769,018
2001 232,354 526,286 758,640
2002 232,872 524,635 757,507
2003 232,337 519,916 752,253
Thereafter 940,885 13,338,675 14,279,560
Compensated
absences 335,009 335,009
$2,507,805 $15,830,379 $18,338,184
Annual maturities of long-term compensated absences cannot be reasonably determined.
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' VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 19 - REQUIRED RESERVES
' The Bond Resolution of the Series 1998 Water Revenue Bonds requires the establishment of the
following accounts:
' Account Purpose
Construction Account To accumulate funds for payment of construction costs.
'
Revenue Account To collect the entire gross revenues derived from the
water system except investment earnings.
'
Debt Service Account To accumulate sufficient funds to meet the annual debt
service requirements through transfers from the Revenue
' Account.
Operation and Maintenance Account To pay all operating expenses of the system.
'
Rebate Account To accumulate funds to meet any possible arbitrage
rebate expenses, if required.
' '
Renewal and Re lacement
P for the
To accumulate funds for the ose of a
pmP p Ymg
' cost of extensions, additions to, or the replacement of
capital assets of the system
.
Reserve Account To accumulate funds for payment of principal and
interest only if funds in the Debt Service Funds are
rnsufficrent.
' Rate Stabilization Account To accumulate funds to be used for any lawful purpose
including to make deposits into the Revenue Account.
t Impact Fee Account To accumulate impact fee revenue received each fiscal
year. To be used in the event that funds in the Revenue
Account are insufficient to fund the Debt Service
Account.
' The reserves for revenue bond retirement and renewal and replacement represent the total of
restricted assets less amounts payable from restricted assets as reported in the Water Fund.
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VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 20 - 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, 1998, $3,170,000 of
bonds outstanding are considered defeased.
NOTE 21- INTERFUND RECEIVABLES AND PAYABLES
Individual fund interfund receivables and payables at September 30, 1998 are as follows:
Interfund Interfund
Fund Receivables Payables
General Fund $12,286 $43,239
Special Revenue Fund 16,454
Bond Construction Fund 2,810
Community Development Fund 5,147 9,475
Stormwater Utility Fund 1,715
Water Enterprise Fund 19,922
Fire Employee's Pension Trust Fund 1,347 3,140
Police Employee's Pension Trust Fund 2,607
General Employee's Pension Trust Fund 4,400
61 271 61 271
NOTE 22 - INTERFUND ADMINISTRATIVE FEE
During the year ended September 30, 1998, the Enterprise Funds remitted $184,765 to the General
Fund for administrative management fees. This amount is reflected as intragovernmental services
revenue in the General Fund and as management fees, an operating expense in the Enterprise
Funds.
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VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 23 -CONTRIBUTED CAPITAL -ENTERPRISE FUNDS
The changes in contributed capital consists of the following:
Water Fund
Capital
Developer Improvement
Contributions Char.eg s Total
Contributed capital
at October 1, 1997 $1,130,893 $2,910,058 $4,040,951
Plus: contributions 136,361 114,638 250,999
Contributed capital at
September 30, 1998 1 267 254 3 024 696 4 291 950
Community Stormwater
Development Fund Utili , Fund
Contributed
from General Capital Grant
Fund Contribution
Contributed capital at
October 1, 1997
Plus: contributions
Contributed capital at
September 30, 1998
$ 4,476 $
181,031
4 476 181 031
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VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 24 -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 information for the year ended
September 30,1998, was as follows:
Community Storm Refuse. and
Development Water Rec cly ins Water
Operating revenues $319,676 $207,167 $316,981 $3,261,372
Depreciation and
amortization 1,251 1,483 379,753
Operating income (loss) (7,333) 94,681 14,214 529,280
Nonoperating revenues 13,179 7,339 5,979 517,670
Operating transfers in 59,100 117,669
Operating transfers out 60,300 215,000
Net income (loss) 64,946 159,389 20,193 602,406
Current capital contributions 181,031 250,999
Property and equipment
Additions 319,724 1,420,225
Net working capital 365,061 152,261 47;588 2,434,297
Total assets 407,282 521,665 72,161 21,182,257
Total equity 342,154 245,873 47,588 6,915,670
NOTE 25 -DEFICIT FUND BALANCE OF INDIVIDUAL FUNDS
As of September 30, 1998, the following funds had a deficit in fund balance:
Capital Projects Funds Retained Earnings~Deficitl
Bond Construction Fund $(2,810)
The accumulated deficit represent excesses of capital outlay expenses over available prior year fund
balances carried over.
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VILLAGE OF TEQUESTA, FLORIDA
Notes to Financial Statements
September 30,1998
NOTE 26 -JOINT VENTURE
' The Village, in conjunction with six other municipalities, organized a consortium to provide mutual
fire and emergency aid. The consortium is known as The Northern Area Mutual Aid Consortium
(NAMAC). During 1998 the consortium purchased various equipment and supplies as well as
' collected contributions. The consortium does not issue separate financial statements. The Village
did not make any obligations to contribute any funds in the fiscal year 1998 or 1999.
NOTE 27 -SUBSEQUENT EVENTS
On December 15, 1998, the Village Council approved the refunding of Jupiter Water increase water
charges collected from water customers from February 1996 to January 1999. The refund includes
interest of 5.44%-with no compounding. On February 1, 1999, the Village issued refund checks
totaling $1,848,321 which included interest of $95,370.
On February 1, 1999, the Village entered into a contract to purchase a portion of Tequesta Plaza
from JMZ Tequesta Properties, Inc. (JMZ) for $1,483,000. The portion of the parcel purchased is
to be used as a public roadway. The Village will demolish the current structures and construct the
roadway. JMZ will construct a new retail building. Simultaneously, the Village also entered into a
contract to purchase another portion of the plaza (Parcel 1) for $477,000. If the Village decides not
to construct a Village facility on this property, the contractor is required to repurchase the property
for the Village's cost of $477,000.
On January 15, 1999, the Village entered in a Loan Agreement with Nations Bank, N.A. (the
Bank). The Village has authorized management to borrow up to $5,000,000 from. the Bank for the
purpose of financing the cost of capital projects and to refinance the current line of credit. The loan
bears an interest rate of 60% of Nations Bank's prime lending rate, adjusted day of change. Interest
is payable monthly with principal due at maturity, which is 16 months from the date of closing. The
Village has pledged Non-Ad Valorem revenues, therefore the loan is not a general obligation of the
Village and should only be payable from appropriated non-ad valorem revenues.
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VILLAGE OF TEQUESTA, FLORIDA '
Notes to Financial Statements
September 30,1998
NOTE 28 -YEAR 2000 COMPLIANCE (UNAUDITED
The Village of Tequesta is taking steps to address the Year 2000 technology problems and avoid '
any interruption of regular business operations. The Year 2000 technology problems are caused by
computer systems and embedded computer chips that use two-digit representations for the year part
of date fields. To accomplish this goal the Village has developed a Year 2000 plan that consists of ,
six primary phases: (1) The first phase is to inventory and assess potentially date-sensitive
hardware and software; (2) Conduct a survey of third party suppliers of goods and services to
assume Y2K compliance; (3) Identify mission critical issues and prioritize each non-compliant
item; (4) Renovation or replacement of non-compliant systems; (5) Testing of corrected systems;
(6) Implementation of corrected systems.
The Village's plan is on schedule to complete conversions, upgrades and replacements for internal ,
mission-critical systems by September 30, 1999. Procedures have been implemented to ensure that
any future purchases of computing resources will be Year 2000 compliant. The Village defines ,
"Year 2000 Compliant" to mean that the product, when used in accordance with its associated
documentation, will be capable upon installation of accurately processing, providing and receiving
date data from, into and between the twentieth and twenty-first centuries, including the years 1999- ,
2000, and leap year calculations, provided that all products (e.g., hardware and software) used in
combination with the products accurately exchange date data with it. As of September 30, 1998,
the Village of Tequesta had no outstanding commitments for Year 2000 technology problems. ,
The Village does not expect Year 2000 problems to have material adverse affects on its financial
health or its ability to meet its financial obligations in a timely manner. Nevertheless, the Village '
cannot guarantee that Year 2000 issues will not adversely affect the Village. Also, the Village has
no control over the Year 2000 remediation efforts of external third parties. It is possible, therefore,
that even if the Village were fully Year 2000 compliant, noncompliance of external third parties
could have an adverse effect upon the Village.
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REQUIRED SUPPLEMENTAL INFORMATION
VILLAGE OF TEQUESTA, FLORIDA
Required Supplemental Information
September 30,1998
Schedule of Contributions from the
Employer and Other Contributing Entities
Fiscal Year Annual
Ended Required Village State Percentage
September 30 Contribution Contribution Contribution Contributed
Firefighter's Pension Fund
1993 $ $ 9,117 $
1994 50,164 46,950 8,801 111.14%
1995 66,627 76,161 14,959 136.76%
1996 85,503 83,035 17,083 117.09%
1997 107,078 80,933 32,975 106.38%
1998 115,319 101,403 37,535 120.48%
Police Officer's Pension Fund
1996 $ $ $
1997 20,140 20,140 100.00%
1998 25,134 8,000 25,134 131.83%
General Emp loyee's Pension Fund
1996 $ $ N/A
1997 11,399 11,400 N/A 100.00%
1998 13,440 13,440 N/A 100.00%
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VILLAGE OF TEQUESTA, FLORIDA
Notes to the Required Supplemental Information
September 30,1998
Police General
Firefighter's Officer's Employee's
Pension Pension Pension
Fund Fund Fund
Valuation date 10/1/95 10/1/95 10/1/95
Actuarial Cost Method Aggregate Entry Age Entry Age
Amortized Method (1) (2) (2)
Remaining Amortization
Period (1) (2) (2)
Asset Valuation Method Four year .Four year Four year
averaged averaged averaged
market market market
Administrative Costs Included in Included in Included in
calculation of calculation of calculation of
normal cost normal cost normal cost
Actuarial Assumption:
Investment rate of return* 8% 8% 8%
Projected salary increase* 6% 6% 6%
*Includes inflation at 4% 4% 4%
Cost of living adjustments 0% 0% 0%
(1) When the aggregate actuarial cost method is used, unfunded actuarial liabilities are
not identified or separately amortized.
(2) This applies only when unfunded liabilities exist. The Village had no unfunded
liabilities at September 30, 1998.
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VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Revenues -Budget and Actual
For the Fiscal Year Ended September 30,1998
Taxes
Ad valorem taxes
Current ad valorem taxes
Delinquent ad valorem taxes
Total ad valorem
Public service 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
Variance
Favorable
Budget Actual (Unfavorable)
$2,423,320 $2,450,091 $ 26,771
5,000 7,576 2,576
2,428,320 2,457,667 29,347
352,000 365,536 13,536
85,055 89,591 4,536
97,000 96,916 (84)
16,500 17,366 866
550,555 569,409 18,854
174,000 154,170 (19,830)
3,152,875 3,181,246 28,371
11,500 14,455 2,955
11,500 14,455 2,955
(Continued)
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VILLAGE OF TEQUESTA, FLORIDA
1 General Fund
Schedule of Revenues -Budget and Actual
For the Fiscal Year Ended September 30,1998
1
Intergovernmental
Cigarette tax
State revenue sharing
Alcoholic beverage licenses
One-half cent sales tax
911 maintenance reimbursement
Grants
Other
Total intergovernmental
Charges for services
Certification, copying, record search
Fire rescue service
Fire inspections
Fire plan review services
EMS transport service
Other fire rescue/EMS services
Municipal police academy
Extra duty -contracted services
Total charges for services
Fines and forfeits
Court fines
Parking tickets
Code enforcement
Total fines and forfeits
Variance
Favorable
Budget Actual (Unfavorable)
$ 13,500 $ 13,420 $ (80)
129,200 129,210 10
4,500 6,633 2,133
285,000 303,824 18,824
9,945 9,811 (134)
17,785 18,851 1,066
3,400 3,899 499
463,330 485,648 22,318
2,000 2,777 777
150,007 150,027 20
14,000 12,378 (1,622)
2,500 7,080 4,580
71,340 99,670 28,330
2,000 296 (1,704)
700 620 (80)
4,500 931 (3,569)
247,047 273,779 26,732
70,000 64,391 (5,609)
4,500 6,830 2,330
1,000 1754 754
75,500 72,971 (2,529)
(Continued)
77
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Revenues -Budget and Actual
For the Fiscal Year Ended September 30,1998
Interest
Tax collector
Investments
Total interest
Miscellaneous
Other
Total miscellaneous
Impact fees
Law enforcement
Fire rescue
Parks and recreation
Total impact fees
Intragovernmental services
Administrative management -
enterprise funds
Total intragovernmental services
Total revenues
Variance
Favorable
Budget Actual (Unfavorable)
$ 5,000 $ 5,902 $ 902
75,000 76,529 1,529
80,000 82,431 2,431
5,000 8,566 3,566
5,000 8,566 3,566
1,525
1,525
1,525
183,120 190,650 7,530
183,120 190,650 7,530
$4,218,372 $4,311,271 $ 92,899
78
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VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures -Budget and Actual
For the Fiscal Year Ended September 30,1998
Variance
Favorable
Budget Actual (Unfavorable)
General government
Legislative
Travel and per diem
Books, publications and due
Other charges
Total legislative
$ 16,220 $ 16,220 $
5,472 5,472
905 904 1
22,597 22,596 1
Executive
Salaries
F.I.C.A.
Retirement
Life and health insurance
Workers' compensation insurance
Deferred compensation insurance
Professional fees
Contractual services
Travel and per diem
Office machines maintenance
Office supplies
Books, publications, dues
Other charges
145,880 145,877
10,980 10,976
29,325 29,303
14,792 14,778
1,400 1,400
4,533 4,533
11,015 10,995
9,725 9,723
7,805 7,804
475 472
1,415 1,412
1,400 1,397
2,535 2,524
4
22
14
Total executive
79
241,280 241,194
2~
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3
.3
(Continued)
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures -Budget and Actual
For the Fiscal Year Ended September 30,1998
General government (continued)
Financial and administrative
Salaries
F.I.C.A.
Retirement
Life and health insurance
Workers' compensation insurance
Accounting and auditing
Contractual services
Travel and per diem
Repairs and maintenance
Office machines maintenance
Office supplies
Books, publications, dues
Other charges
Budget Actual
$ 146,274 $ 146,174
Variance
Favorable
(Unfavorable)
100
2
22
1~
18
6
90
3
Total financial and administrative
10,910 10,908
13,350 13,328
13,404 13,386
1,090 1,088
87,550 87,532
4,360 4,354
579 489
1,805 1,802
4,222 4,222
5,790 5,787
1,010 1,010
3
290 288 2
290,634 290,368 266
Legal counsel
Legal services
Total legal counsel
102,010 102,009 1
102,010 102,009 1
80
(Continued)
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VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures -Budget and Actual
For the Fiscal Year Ended September 30,1998
General government (continued)
Other general government
Salaries
F.I.C.A.
Retirement
Other personal services
Contractual services
Communication services
Transportation/postage
Utility services
Rentals and leases
Fire hydrant rental fees
Insurance/claims and judgments
Village hall maintenance
Promotional activities
Printing and binding
Office supplies
Books, publications, dues
Other charges
Total other general government
Total general government
Variance
Favorable
Budget Actual (Unfavorable)
$ 86,020 $ 85,996 $ 24
5263 5263
11,355 11,353 2
24,810 24,795 15
37,983 37,803 180
8,410 8,408 2
7,785 7,781 4
18,635 18,635
25,905 25,894 11
17,490 17,490
21,275 21,273 2
16,445 16,435 10
13,430 13,428 2
170 162 8
5,360 5,358 2
530 528 2
7,898 7,854 44
308,764 308,456 308
965,285 964,623 662
(Continued)
81
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures -Budget and Actual
For the Fiscal Year Ended September 30,1998
Public Safety
Police Department
Salaries
Overtime
F.I.C.A.
Retirement
Life and health insurance
Workers' compensation insurance
Professional fees
Travel and per diem
Communication services
Rentals and leases
Insurance
Repairs and maintenance
Printing and binding
Personnel training
Operating supplies
Office supplies
Books, publications, dues
Other charges
Total police department
Variance
Favorable
Budget Actual (Unfavorable)
$ 851,638 $ 851,624 $ 14
46,660 45,988 672
70,293 69,694 599
213,074 213,065 9
82,222 81,933 289
49,900 49,891 9
1,445 1,445
6,655 5,115 1,540
7,646 7,396 250
463 354 109
23,100 23,093 7
38,290 37,150 1,140
2,365 2,057 308
14,075 13,484 591
49,295 47,196 2,099
3,355 2,743 612
2,602 2,268 334
12,612 11,616 996
1,475,690 1,466,112 9,578
(Continued)
82
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VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures -Budget and Actual
For the Fiscal Year Ended September 30, 1998
Public Safety (continued)
Variance
Favorable
Budget Actual (Unfavorable)
Emergency and disaster relief
Civil preparedness $ 7,825 $ 5,793 $ 2,032
Total emergency and disaster relief 7,825 5,793 2,032
Fire rescue and EMS services
Salaries
F.I.C.A.
Retirement
Life and health insurance
Volunteer fire rescue and EMS
Accounting and auditing
Travel and per diem
Communication services
Utility services
Repairs and maintenance
Insurance
Printing and binding
Operating supplies
Office supplies
Books, publications, dues
Other charges
Total fire rescue and EMS services
Total public safety
$ 690,600 $ 690,569 $ 31
53,050 52,658 392
109,978 109,889 89
116,820 108,296 8,524
24,650 24,645 5
1,190 1,190
2,045 1,520 .525
6,885 6,883 2
2,660 2,606 54
33,025 32,645 380
13,222 12,385 837
630 586 44
42,175 38,786 3,389
1,290 1,287 3
3,030 2,809 221
15,100 14,915 185
1,116,350 1,100,479 15,871
2,599,865 2,572,384 27,481
(Continued)
83
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures -Budget and Actual
For the Fiscal Year Ended September 30,1998
Transportation
Road and street facilities
Salaries
F.I.C.A.
Retirement
Life and health insurance
Workers' compensation insurance
Engineering services
Contractual services
Travel and per diem
Communication services
Utility services
Rentals and leases
Repairs and maintenance
Insurance
Operating supplies
Road materials and supplies
Books, publications, dues
Other charges
Total transportation
Variance
Favorable
Budget Actual (Unfavorable)
$ 108,840 $ 87,124 $ 21,716
10,245 6,100 4,145
20,625 11,642 8,983
19,455 19,453 2
7,080 7,028 52
41,000 37,778 3,222
123,845 105,889 17,956
4,020 4,018 2
1,560 1,556 4
69,780 69,047 733
1,450 1,234 216
46,795 39,401 7,394
12,500 12,328 172
7,000 4,210 2,790
7,400 5,674 1,726
300 140 160
1,760 879 881
483,655 413,501 70,154
(Continued)
84
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VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures -Budget and Actual
For the Fiscal Year Ended September 30,1998
Human Services
Health -mosquito control
Salaries
Repairs and maintenance
Operating supplies
Personnel training
Total human services
Variance
Favorable
Budget Actual (Unfavorable)
$ 800 $ 272 $ 528
200 200
2,850 24 2,826
1,000 959 41
4,850 1,255 3,595
Culture/Recreation
Parks and recreation
Salaries
F.LC.A.
Retirement
Life and health insurance
Workers' compensation insurance
Contractual services
Travel and per diem
Communication services
Utility services
Repairs and maintenance
Insurance
68,675 68,666 9
5,360 5,358 2
16,590 16,584 6
5,515 5,092 423
3,060 3,060
48;180 48,177 3
3,455 3,450 5
800 627 173
19,665 19,665
46,600 46,036 564
3,040 3,039 1
(Continued)
85
VILLAGE OF TEQUESTA, FLORIDA
General Fund
Schedule of Departmental Expenditures -Budget and Actual
For the Fiscal Year Ended September 30,1998
Variance
Favorable
Budget Actual (Unfavorable)
Culture/Recreation (continued)
Operating supplies
Office supplies
Books, publications, dues
Aid to community organizations
Aid to government organizations
Other charges
Total culture/recreation
Capital outlay
General government -executive
General government -other
Police
Fire rescue and EMS services
Transportation
Culture/Recreation
Total capital outlay
$ 2,530 $ 845 $ 1,685
100 95 5
300 115 185
7,350 7,350
3,175 1,800 1,375
14,000 13,809 191
248,395 243,768 4,627
8,317 7,357 960
8,785 8,106 679
73,910 70,622 3,288
14,005 9,361 4,644
68,035 29,580 38,455
104,120 103,910 210
277,172 228,936 48,236
Debt service
Principal retirement
Interest
Total debt service
Total expenditures
68,079 68,071 8
30,012 30,008 4
98,091 98,079 12
$4,677,313 $4,522,546 $ 154,767
86
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VILLAGE OF TEQUESTA, FLORIDA
Special Revenue Fund
Schedule of Revenues -Budget and Actual
For the Fiscal Year Ended September 30,1998
Taxes
Franchise fees
Total taxes
Licenses and permits
Variance
Favorable
Budget Actual (Unfavorable)
$336,910 $361,637 $ 24,727
336,910 361,637 24,727
Professional and occupational licenses 75,000 74,748 (252)
Total licenses and permits 75,000 74,748 (252)
Total revenues $411,910 $436,385 $ 24,475
87
VILLAGE OF TEQUESTA, FLORIDA
Capital Projects Funds
Combining Balance Sheet
September 30,1998
Assets
Cash and cash equivalents
Investments
Total assets
Liabilities, equity and other credits
Liabilities
Due to other funds
Equity and other credits
Reserved for:
Encumbrances
Unreserved
Designated for:
Road projects
Undesignated
Total equity and other credits
Total liabilities, equity and other credits
Capital Bond
Improvement Construction
Fund Fund Total
$ 6,280 $ $ 6,280
284,505 284,505
$290,785 $ $290,785
$ $ 2,810 $ 2,810
114,957 114,957
120,880 120,880
169,905 (117,767) 52,138
290,785 2,810) 287,975
$290,785 $ $290,785
88
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VILLAGE OF TEQUESTA, FLORIDA
Capital Project Funds
Combining Statement of Revenues,
Expenditures and Changes in Fund Balance
For the Fiscal Year Ended
September 30,1998
Revenues
Interest
Total revenues
Expenditures
Capital outlay
Debt service interest and other costs
Total expenditures
Excess of revenues over (under)
expenditures
Other financing sources (uses)
Debt proceeds
Transfers in
Total other financing sources
Excess of revenues and other financing
sources over (under) expenditures and
other financing uses
Fund balances, October 1, 1997
Fund balances, September 30, 1998
Capital Bond
Improvement Construction
Fund Fund Total
$ 9,354 $ $ 9,354
9,354 9,354
101,073 37,887 138,960
11,284 11,284
101,073 49,171 150,244
(91,71.9 49,171 1( 40,890)
50,001 50,001
175,000 175,000
175,000 50,001 225,001
83,281 830 84,111
207,504 (3,640) 203,864
$290,785. $ (2,810) $ 287,975
89
VILLAGE OF TEQUESTA, FLORIDA
Capital Project Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance -Budget and Actual
For the Fiscal Year Ended
September 30,1998
Revenues
Interest
Total Revenues
Expenditures
Capital outlay
Debt service interest and other costs
Total expenditures
Excess of revenues over (under)
expenditures
Other financing sources (uses)
Debt proceeds
Transfers in
Total other financing sources
Excess of revenues and other financing
sources over (under) expenditures and
other financing uses
Fund balances, October 1, 1997
Fund balances, September 30, 1998
Capital Improvement Fund
Budget Actual Variance
$ 2,000 $ 9,354 $ 7,354
2,000 9,354 7,354
187,345 101,073 86,272
187,345 101,073 86,272
(185,345 91,719) 93,626
175,000 175,000
175,000 175,000
$ (10,345) 83,281 $ 93,626
207,504
$290,785
90
Bond Construction Fund Totals
Budget Actual Variance Budget Actual Variance
$ $ $ $ 2,000 $ 9,354 $ 7,354
2,000 9,354 7,354
332,370 37,887 294,483 519,715 138,960 380,755
12,630 11,284 1,346 12,630 11,284 1,346
345,000 49,171 295,829 532,345 150,244 382,101
345,000 49,171 295,829 530,345) (140,890) 389,455
350,000 50,001 (299,999) 350,000 50,001 (299,999)
175,000 175,000
350,000 50,001 299,999) 525,000 225,001 299,999)
$ 5,000 830 $ (4,170) $ (5,345) 84,111 $ 89,456
(3,640)
$ 2,810)
203,864
$287,975
91
THIS PAGE INTENTIONALLY LEFT BLANK
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PROPRIETARY FUNDS
(ENTERPRISE FUNDS)
VILLAGE OF TEQUESTA, FLORIDA
Combining Balance Sheet -Enterprise Funds
September 30,1998
Community Storm Water Refuse and
Development Utility Recycling
Fund Fund Fund
Assets
Cash and equivalents $ 18,319 $ 6,235 $ 4,354
Investments 379,390 56,845 65,237
Accounts receivable 522 493 2,570
Due from other funds 5,147 1,715
Due from other governments 181,031
Inventories
Restricted assets
Cash and equivalents
Investments
Other assets
Fixed assets 3,904 275,346
Total assets $ 407,282 $ 521,665 $ 72,161
Liabilities, equities and other credits
Accounts payable $ 16,092 $ 5,409 $ 24,573
Accrued liabilities 6,577 1,962
Payable from restricted assets
Deposits
Due to other funds 9,475
Due to other governments 6,173
Deferred revenue
Contracts payable 86,687
Current portion of:
Notes payable
Compensated absences 22,335 703
Notes payble
Bonds payable
Total liabilities 60,652 94,761 24,573
Equity and other credits
Contributed capital 4,476 181,031
Retained earnings
Reserved for capital improvements 245,873
Unreserved 342,154 47,588
Total equity and other credits 346,630 426,904 47,588
Total liabilities, equity and other credits $ 407,282 $ 521,665 $ 72,161
92
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Water
Fund
Total
$ 1,095,710 $ 1,124,618
1,526,483
333,523
19,922
17,061
165,513
9,915,254
144,600
7,964,191
2,027,955
337,108
26,784
181,031
17,061
165,513
9,915,254
144,600
8,243,441
$21,182,257 $22,183,365
$ 127,800 $ 173,874
58,860 67,399
248,740 248,740
9,475
17,477 23,650
1,680,571 1,680,571
86,687
3,868 3,868
92,404 115,442
8,661 8,661
7,736,256 7,736,256
9,974,637 10,154,623
4,291,950 4,477,457
994,415 1,240,288
5,921,255 6,310,997
11,207,620 12,028,742
$21,182,257 $22,183,365
93
VILLAGE OF TEQUESTA, FLORIDA
Combining Statement of Revenues, Expenses and Changes in
Retained Earnings -Enterprise Funds
For the Fiscal Year Ended September 30, 1998
Operating revenues
Charges 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
Repairs and maintenance
Utilities
Insurance
Other
Depreciation
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses)
Interest income
Net appreciation in fair value of investments
Interest expense and fiscal charges
Community aid donation
Gain on sale of land
Total nonoperating revenues (expenses)
Income before operating transfers
Operating transfers
Operating transfers in
Operating transfers out
Total operating transfers in (out)
Net income
Retained earnings, October 1, 1997,
as restated
Retained earnings, September 30, 1998
Community Storm Water Refuse and
Development Utility Recycling
Fund Fund Fund
$ 35,536 $ 207,167 $ 316,981
284,140
319,676 207,167 316,981
297,267
194,837 52,034
22,207 6,800
73,674 15,719
4,257 2,257
7,470 5,000 5,500
4,131 223
14,857 26,930
2,843
1,482
1,251
327,009
(7,333)
13,179
2,000
40
1,483
112,486 302,767
94,681 14,214
7,339 5,979
13,179 7,339 5,979
5,846 102,020 20,193
59,100 117,669
(60,300)
59,100 57,369
64,946 159,389 20,193
277,208 86,484 27,395
$ 342,154 $ 245,873 $ 47,588
94
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Water
Fund Total
$3,261,372 $3,821,056
284,140
3,261,372 4,105,196
667,950 965,217
711,848 958,719
352,873 381,880
39,898 129,291
6,820 13,334
166,795 184,765
22,866 27,220
57,176 57,176
186,044 227,831
96,748 96,748
35,334 40,177
7,987 9,509
379,753 382,487
2,732,092 3,474,354
529,280 630,842
469,936 496,433
35,335 35,335
(223,044) (223,044)
(6,500) (6,500)
12,399 12,399
288,126 314,623
817,406 945,465
176,769
(215,000) (275,300)
(215,000) (98,531)
602,406 846,934
6,313,264 6,704,351
$6,915,670 $7,551,285
95
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VILLAGE OF TEQUESTA, FLORIDA
Enterprise Funds
Combining Statement of Revenues, Expenses and
Changes in Retained Earnings -Budget and Actual
September 30,1998
Community Development Fund
Operating revenues
Charges 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
Repairs and maintenance
Utilities
Insurance
Other
Depreciation
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses)
Interest income
Net appreciation in fair value of investments
Interest expense and fiscal chazges
Community aid donation
Gain on sale of land
Contingency
Total nonoperating revenues (expenses)
Income before operating transfers
Operating transfers
Operating transfers in
Operating transfers out
Total operating transfers in (out)
Net income
Retained earnings, October 1, 1997,
as restated
Retained earnings, September 30, 1998
96
15,000 13,179 (1,821)
(106,925) 5,846 112,771
59,100 59,100
59,100 59,100
$ (47,825) 64,946 $ 112,771
277,208
$ 342,154
(Continued)
1
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Budget Actual Variance
$ 24,500 $ 35,536 $ 11,036
185,805 284,140 98,335
210,305 319,676 109,371
195,040 194,837 203
22,210 22,207 3
74,208 73,674 534
5,500 4,257 1,243
7,470 7,470
4,642 4,131 511
15,460 14,857 603
2,845 2,843 2
3,600 1,482 2,118
1,255 1,251 4
332,230 327,009 5,221
(121,925) (7,333) 114,592
15,000 13,179 (1,821)
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Storm Water Utility Fund Refuse and Recycling Fund
Budget Actual Variance Budget Actual Variance
$ 217,800 $ 207,167 $ (10,633) $ 317,770 $ 316,981 $ (789)
217,800 207,167 (10,633) 317,770 316,981 (789)
308,000 297,267 10,733
55,285 52,034 3,251
6,805 6,800 5
19,900 15,719 4,181
4,500 2,257 2,243
5,000 5,000 5,500 5,500
225 223 2
2,400 2,400
31,820 26,930 4,890
2,000 2,000
1,000 40 960 1,200 1,200
1,485 1,483 2
130,420 112,486 17,934 314,700 302,767 11,933
87,380 94,681 7,301 3,070 14,214 11,144
2,500 7,339 4,839 1,500 5,979 4,479
-~-
7,339
102,020
117,670
(60,300) 117,669
(60,300)
57,370 57,369
$ 147,250 159,389
86,484
$ 245,873
4,839 1,500 5,979 4,479
12,140 4,570 20,193 15,623
(1)
.-~
$ 12,139 4,570
27,395
97
(Continued)
VILLAGE OF TEQUE5TA, FLORIDA
Enterprise Funds
Combining Statement of Revenues, Ezpenses and
Changes in Retained Earnings -Budget and Actual
September 30,1998
(Continued)
Operating revenues
Charges for services
Licenses and permits
Total operating revenues
Water Fund
Budget Actual Variance
$ 2,943,890
2,943,890
Operating expenses
Purchased 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
Net appreciation in fair value of investments
Interest expense and fiscal charges
Community aid donation
Gain on sale of land
Contingency
Total nonoperating revenues (expenses)
Income before operating transfers
Operating transfers
Operating transfers in
Operating transfers out
Total operating transfers in (out)
Net income
Retained earnings, October 1, 1997,
as restated
Retained earnings, September 30, 1998
667,950
711,721
352,925
43,840
7,500
166,795
23,855
63,060
236,625
102,605
35,345
9,000
379,775
2,800,996
142.894
75,000
(205,350)
(6,500)
1,000
(504,280)
(640,130)
(497,236)
(215,000)
(215,000)
$ (712,236)
98
$ 3,261,372
3,261,372
667,950
711,848
352,873
39,898
6,820
166,795
22,866
57,176
186,044
96,748
35,334
7,987
'~79.75'i
$ 317,482
317.482
(127)
52
3,942
680
989
5,884
50,581
5,857
11
1,013
~~
2,732,092 68,904
529,280 386,386
469,936 394,936
35,335 35,335
(223,044) (17,694)
(6,500)
12,399 11,399
504,280
288,126 928,256
817,406 1,314,642
(215,000)
(215,000)
602,406 $ 1,314,642
6,313,264
$ 6,915,670
(Continued)
1
1
Total
Budget Actual Variance
$ 3,503,960 $ 3,821,056 $ 317,096
185,805 284,140 98,335
3,689,765 4,105,196 415,431
975,950 965,217 10,733
962,046 958,719 3,327
381,940 381,880 60
137,948 129,291 8,657
17,500 13,334 .4,166
184,765 184,765
28,722 27,220 1,502
65,460 57,176 8,284
283,905 227,831 56,074
102,605 96,748 5,857
40,190 40,177 13
14,800 9,509 5,291
382,515 382,487 28
3,578,346 3,474,354 103,992
111,419 630,842 519,423
94,000 496,433 402,433
35,335 35,335
(205,350) (223,044) (17,694)
(6,500) (6,500)
1,000 12,399 11,399
(504,280) 504,280
(621,130) 314,623 935,753
(509,711) 945,465 1,455,176
176,770 176,769 (1)
(275,300) (275,300)
(98,530) (98,531) (1)
$ (608,241) 846,934 $ 1,455,175
6,704,351
$ 7,551,285
99
VILLAGE OF TEQUESTA, FLORIDA
Combining Statement of Cash Flows-
Enterprise Funds
For the Fiscal Year Ended September 30,1998
Cash flows from operating activities:
Net operating income (loss)
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation
Changes in assets and liabilities
(Increase) decrease in:
Accounts receivable
Due from other funds
Inventories
Increase (decrease) in:
Accounts payable
Accrued liabilties
Deposits
Deferred revenue
Compensated absences
Due to other funds
Due to other governments
Net cash provided by operating activities
Cash flows from noncapital financing activities:
Operating transfers from other funds
Operating transfers to other funds
Contribution
Net cash provided by (used) for noncapital
financing activities
100
Community Storm Water
Development Utility
Fund Fund
$ (7,333) $ 94,681
1,251 1,483
(522) (493)
(5,147) 8,285
11,762 1,340
322 23
1,433 (1,840)
9,475
5,903
17,144 103,479
59,100 117,669
(60,300)
59,100 57,369
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Refuse and
Recycling Water
Fund Fund Total
$ 14,214 $ 529,280 $ 630,842
379,753 382,487
(2,542) (36,802) (40,359)
(19,931) (16,793)
7,255 7,255
2,240 (6,822) 8,520
32,176 32,521
16,741 16,741
638,341 638,341
23,880 23,473
9,475
21,179 27,082
13,912 1,585,050 1,719,585
176,769
(215,000) (275,300)
(6,500) (6,500)
(221,500) (105,031)
101
(Continued)
VILLAGE OF TEQUESTA, FLORIDA
Combining Statement of Cash Flows-
Enterprise Funds
For the Fiscal Year Ended September 30,1998
(Continued)
Community
Development
Fund
Storm Water
Utility
T ~
Cash flows from capital and related
financing activities:
Capital contributions
Acquisition and construction of fixed assets
Proceeds from land sale
Revenue bonds proceeds
Principal paid on notes payable
Interest paid on notes payable
Interest paid on revenue bonds
Fiscal charges paid on revenue bonds
Payment on construction contracts
(163,127)
Net cash provided by (used) for capital and
related financing activities
Cash flows from investing activities:
Purchases 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, 1997
Cash and cash equivalents, September 30, 1998
Noncash Investing, Capital and Financing Activities
Capital grant receivable -storm water fund
Noncash capital contribution from developers
102
(163,127)
(263,178) (56,844)
13,182 7,338
(249,996) (49,506)
(173,752) (51,785)
192,071 58,021
$ 18,319 $ 6,236
$ 181,031
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Refuse and
Recycling Water
$ $ 114,638 $ 114,638
(669,207) (832,334)
12,399 12,399
7,726,471 7,726,471
(3,589) (3,589)
(1,187) (1,187)
(198,789) (198,789)
(157,883) (157,883)
(91,596) (91,596)
6,731,257 6,568,130
(65,237) (8,942,780) (9,328,039)
5,979 466,218 492,717
(59,258) (8,476,562) (8,835,322)
(45,346) (381,755) (652,638)
49,700 1,642,978 1,942,770
$ 4,354 $1,261,223 $1,290,132
$ 181,031
$ 136,361 $ 136,361
103
VILLAGE OF TEQUESTA, FLORIDA
Water Fund
Schedule of Restricted Accounts Under Revenue Bond Ordinance
For the Fiscal Year Ended September 30, 1998
Cash and investments, October 1, 1997
Increases
Bond proceeds
Impact fees
Transfers from unrestricted accounts
Investment earnings
Total
Decreases
Capital outlay
Payments for debt service
Total
Cash and investments, September 30, 1998
Renewal and
Debt Service Construction Replacement
Account Account Account
$ $ $
7,549,283
Impact Fee
114,638
227,348 137,145
204,017
227,348 7,753,300 137,145 114,638
638,283
194,870
194,870 638,283
$ 32,478 $ 7,115,017 $ 137,145 $ 114,638
104
VILLAGE OF TEQUESTA, FLORIDA
Trust Funds
Combining Balance Sheet
September 30,1998
Assets
Cash and cash equivalents
Investments at fair value
Receivables
Due from other funds
Total assets
Liabilities and fund balances
Accounts payable
Other liabilities
Due to other funds
Total liabilities
Fund balances
Reserved for:
Law enforcement
Employees' pension benefits
Total liabilities and fund balances
Pension
Expendable Trust
Trust Fund Funds
Special All
Law Enforcement Pension
Trust Fund Funds
$ 6,545 $ 2,700
935,586
4,162
5,747
$ 6,545 $ 948,195
$ $ 6,371
1,418
5,747
13,536
$ 6,545-
934,659
$ 6,545 $ 948,195
105
Total
$ 9,245
935,586
4,162
5,747
$ 954,740
$ 6,371
1,418
5,747
13,536
$ 6,545
934,659
$ 954,740
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
VILLAGE OF TEQUESTA, FLORIDA
Pension Trust Funds
Combining Statement of Plan Net Assets
September 30,1998
Police General
Firefi ter's Officer's Employee's Total
Assets
Cash and cash equivalents
Investments at fair value
Receivables
Due from other funds
Total assets
Liabilities and Fund Balances
Liabilities
Accounts payable
Other liabilities
Due to other funds
Total liabilities
$ 872 $ 1,131 $ 697 $ 2,700
837,339 64,801 33,446 935,586
4,162 4,162
1,347 4,400 5,747
$ 839,558 $65,932 $ 42,705 $ 948,195
$ 404 $ 404 $ 5,563 $ 6,371
1,347 71 1,418
3,140 2,607 5,747
4,891 3,082 5,563 13,536
Fund balances
Reserved for employees'
pension benefits (1) $ 834,667 $62,850 $ 37,142 $ 934,659
Total liabilities and fund balances $ 839,558 $65,932 $ 42,705 $ 948,195
(1) A schedule of funding progress for each plan is presented on page 74.
106
VILLAGE OF TEQUESTA, FLORIDA
Combining Statement of Changes in Plan Net Assets
Pension Trust Funds
Fiscal Year Ended September 30,1998
Police General
Firefighter's Officer's Employee's Total
Additions
Contributions
Employer $ 101,403 $ 8,000 $ 13,440 $122,843
Plan members 34,428 3,339 10,582 48,349
Other 37,535 25,134 62,669
Total contributions 173,366 36,473 24,022 233,861
Investment income
Net appreciation in fair
value of investments 60,892 4,790 2,620 68,302
Interest & dividends 20,768 1,055 733 22,556
Net investment income 81,660 5,845 3,353 90,858
Total additions 255,026 42,318 27,375 324,719
Deductions
Refunds of contributions 17,458 349 3,884 21,691
Administrative expense 8,901 1,136 1,038 11,075
Total deductions 26,359 1,485 4,922 32,766
Net Increase 228,667 40,833 22,453 291,953
Fund balance reserved for employees'
pension benefits
October 1, 1997
September 30, 1998
606,000 22,017 14,689 642,706
$ 834,667 $ 62,850 $ 37,142 $934,659
107
VILLAGE OF TEQUESTA, FLORIDA
Schedule of General Fixed Assets by Source
September 30,1998
General fixed assets
Land $ 397,653
Buildings 1,106,261
Improvements other than buildings 258,777
Equipment 1,728,556
Construction in progress 61,403
Total general fixed assets $ 3,552,650
Investment in general fixed assets
General Fund revenue $ 3,552,650
Total investment in general fixed assets $ 3,552,650
108
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
VILLAGE OF TEQUESTA, FLORIDA
Schedule of General Fixed Assets by Function
September 30,1998
Buildings Construction
and in
Total Land Improvements Equipment Progress
General government $1,325,966 $347,925 $ 910,568 $ 67,473 $
Public safety 1,608,046 120,989 1,425,654 61,403
Transportation 187,793 7,713 180,080
Human services 5,520 5,520
Culture/recreation 310,681 49,728 211,124 49,829
Total general fixed assets 3,438,006 397,653 1,250,394 1,728,556
Allocated to functions
61,403
Prior year data which
cannot be allocated 114,644 114,644
Total general fixed assets $3,552,650 $397,653 $ 1,365,038 $1,728,556 $ 61,403
109
VILLAGE OF TEQUESTA, FLORIDA
Schedule of Changes in General Fixed Assets
By Function
For the Year Ended September 30,1998
General
Fixed Assets General
October 1, Fixed Assets
1997, as September 30,
Restated Additions Deletions 1998
General government $ 1,350,859 $ 13,128 $ 38,020 $ 1,325,967
Public safety 1,644,588 119,107 155,649 1,608,046
Transportation 207,076 3,750 23,033 187,793
Human services 5,520 5,520
Culture/recreation 212,692 103,910 5,922 310,680
3,420,735 239,895 222,624 3,438,006
Prior to allocation by
function 114,644 114,644
Total general fixed
assets, $ 3,535,379 $239,895 $222,624 $ 3,552,650
110
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
OTHER SUPPLEMENTAL INFORMATION
VILLAGE OF TEQUESTA, FLORIDA
Schedule of Insurance
September 30,1998
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)
PolicYNumber Coveraee
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
FBPAT94420007-OS $2,000,000
6510006459 $75,000
111
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
VILLAGE OF TEQUESTA, FLORIDA
General Revenues by Source (iJnaudited) (1)
Last Ten Fiscal Years
Licenses
Fiscal Year Ended and
September 30 Taxes Permits (3)
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
1998 3,542,883 89,203
(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.
112
Charges
for Fines and
Intergovernmental Services Forfeits Miscellaneous(2) Total
$701,112 $ 32,941 $51,555 $338,392 $3,543,787
872,494 14,146 37,903 304,227 3,905,327
513,839 17,442 38,035 241,371 3,509,958
528,276 27,174 31,647 215,887 3,670,484
531,696 21,304 46,037 202,040 3,655,702
423,606 189,691 48,885 223,494 3,917,396
898,701 241,848 43,555 308,037 4,769,986
950,477 213,283 78,578 279,658 4,952,453
471,023 291,711 63,343 298,757 4,495,895
485,648 273,779 74,641 292,526 4,758,680
113
1
VILLAGE OF TEQUESTA, FLORIDA
General Government Expenditures by Function (iJnaudited) (1)
Last Ten Fiscal Years '
Fiscal Year Ended General Public '
Sep tember 30 Government Safe (2) Transportation
1989 $603,396 $1,387,841 $ 900,405 '
1990 671,631 1,725,165 1,206,458
1991 616,142 1,938,477 557,001
1992 743,343 2,056,825 651,665
1993 939,549 2,552,513 592,751
1994 678,217 2,662,075 859,763
1995 828,386 2,546,227 586,534 '
1996 891,574 2,662,616 1,045,018
1997 760,326 2,756,090 923,626 '
1998 980,086 2,652,367 582,041
(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
114
Physical Human
Environment(3) Services
$337,268 $1,067
437,236 930
5,550 2,879
5,224 4,143
4,594 591
624
4,179 472
1,033
1,033
1,255
Culture
and Debt
Recreation Service Total
$ 103,019 $ 86,905 $3,419,901
110,989 90,082 4,242,491
158,740 87,707 3,366,496
127,550 91,009 3,679,759
160,210 88,565 4,338,773
123,332 304,476 4,628,487
1,262,093 201,415 5,429,306
803,188 _206,861 5,610,290
208,619 207,771 4,857,465
347,678 252,229 4,815,656
115
1
1
1
1
VILLAGE OF TEQUESTA, FLORIDA
Property Tax Levies and Collections (Unaudited) (1)
Last Ten Fiscal Years
Fiscal Year Total Current Tax Percent Outstanding Delinquent
Ended Tax Levy Collections of Levy Delinquent Taxes to
September 30 ~1~ (11 Collected Taxes Tax Lew
1989 $1,527,891 $1,522,364 99.6% $ 5,527 .4
1990 1,821,025 1,813,915 99.6 7,110 .4
1991 1,864,093 1,850,505 99.3 13,588 .7
1992 1,969,500 1,960,892 99.6 8,608 .4
1993 1,973,375 1,958,191 99.2 15,184 .8
1994 1,968,572 1,950,778 99.1 17,794 .9
1995 2,048,066 2,028,987 99.1 19,079 .9
1996 2,166,385 2,158,420 99.6 7,965 .4
1997 2,270,529 2,263,146 99.7 7,383 .3
1998 2,457,085 2,450,091 99.7 6,994 .3
(1) Includes discounts taken by property taxpayers.
Source: Palm Beach County Tax Collector's office.
116
VILLAGE OF TEQUESTA, FLORIDA
Taxable Value and Just Value of
Taxable Property (iJnaudited)
Last Ten Fiscal Years
Real Propert y
Taxable
September 30 Value Just Value
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
(1) 1997 346,611,843 436,504,082
1998 366,649,040 454,995,565
Source: Palm Beach County Property Appraiser's office.
(1) Corrected -prior year figures incorrect.
117
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Personal Propert,~! _ Total Ratio
Taxable Just Taxable Just Taxable Value
Value Value Value Value To Just Value
$16,463,806 $21,797,356 $354,406,269 $436,612,303- 81%
15,726,846 20,588,283 362,232,906 444,923,277 81%
15,846,444 20,706,881 356,914,548 439,603,919 81%
15,683,045 16,779,738 344,814,635 423,199,792 81%
16,461,659 17,709,182 343,161,444 423,990,442 81%
16,070,906 18,042,404 344,238,467 427,721,568 80%
16,264,236 18,268,307 353,644,212 443,224,979 80%
16,332,495 18,374,057 362,944,338 454,878,139 80%
17,405,293 19,996,199 384,054,333 474,991,764 81%
118
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
Fiscal Year County Water
Ending General School County Management
September 30 Fund Coun Board Library District
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
1987 6.4693 4.866 9.5570 .4997 .6970
1998 6.6310 4.8666 9.5570 .4977 .6970
119
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Florida
Naviga-
Jupiter tional Children's County
Inlet Inland Services Health Care
District District Council District Total
.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
.1203 .0500 .4530 1.1600 24.0346
120
VILLAGE OF TEQUESTA, FLORIDA
Ratio of Net General Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita (iJnaudited)
Last Ten Fiscal Years
Fiscal Year
Ended Taxable
September 30 Population* Value
1989 4,479 $305,061,255
1990 4,499 354,406,269
1991 4,508 362,567,496
1992 4,533 356,914,548
1993 4,551 344,814,635
1994 4,609 343,161,444
1995 4,623 344,238,467
1996 4,637 353,641,212
(1) 1997 4,686 362,944,338
1998 5,036 384,054,333
* Source: Palm Beach County Planning Board, University of Florida Estimates,
Federal Census, and Village Building Department Records.
(1) Corrected -prior year figures incorrect.
121
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Debt Ratio of Net
Gross Service Net Bonded Debt Net Bonded
Bonded Monies Bonded to Assessed Debt
Debt Available Debt Value Per Capita
$ 710,000 $121,839 $ 588,161 .19% 131.32%
680,000 127,917 552,083 .16 122.71
650,000 128,978 521,022 .14 115.58
615,000 123,720 491,280 .14 108.37
580,000 120,530 459,470 .13 100.96
1,365,000 98,453 1,266,547 .36 274.80
1,310,000 85,751 1,224,249 .35 264.82
1,250,000 35,977 1,214,023 .34 261.81
1,185,000 39,562 1,145,438 .32 244.44
1,115,000 48,871 1,066,129 .28 211.70
122
VII.LAGE OF TEQUESTA, FLORIDA
Computation of Legal Debt Margin
September 30,1998
Total assessed value
Legal debt margin:
Debt limitation - 10% of total
assessed value
Total debt outstanding
Less: amount available in
debt service fund
Total debt applicable to limitation
Legal debt margin
$1,115,000
48.871
123
$366,649,040
$36,664,904
1,066,129
$35,598,775
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
VILLAGE OF TEQUESTA, FLORIDA
Computation of Direct and Overlapping Debt (Unaudited)
September 30,1998
Taxing Authority
Net Debt
Outstanding
Percentage
Applicable
to
Tequesta
Amount
Applicable
to
Tequesta
Village of Tequesta $ 1,066,129 100.00% $1,066,129
Palm Beach County 130,600,000 .64% 835,840
Palm Beach County
School Board 279,605.000 .64% 1.789.472
Total $411.271,129 $3.691,441
Source: Above Government Entities
124
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
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
1998 138,071 114,158 252,229 4,815,656 5.2
(1) Includes General, Special Revenue, Capital Projects and Expendable Trust Funds.
125
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1
1
1
1
1
1
1
1
1
1
1
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1
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1
1
VILLAGE OF TEQUESTA, FLORIDA
' Property Value, Construction and Bank Deposits (Unaudited)
Last Ten Fiscal Years
1
' Commercial Residential
Construction (1) Construction (11 Property Value (3~
Number Number
' Fiscal of of (4) Real Personal
Year Units Value Units Value Deposits (2) Property! Property
' 1989 6 $1,615,526 18 $2,694,552 $289,305,649 $366,488,883 $15,755,728
1990 1 197,126 20 3,206,343 313,199,861 414,814,947 21,797,356
1991 1 1,882,888 4 962,089 257,956,427 424,334,994 20,588,283
' 1992 0 0 11 2,395,128 308,119,520 418,897,038 20,706,881
1993 1 101,700 8 2,083,944 278,165,130 406,420,054 16,779,738
1994 0 0 25 3,134,633 293,551,944 406,281,260 17,709,182
1995 0 0 10 1,658,043 326,394,550 409,679,164 18,042,404
1996 3 2,248,278 6 1,127,624 319,213,870 424,956,672 18,268,307
(5) 1997 2 320,400 169 14,896,648 314,744,875 436,504,082 18,374,057
' 1998 2 2,852,090 12 3,080,959 454,995,565 19,996,199
' Source:
(1) Village of Tequesta Building Department.
' (2) Tequesta Commercial Banks and Savings and Loan Associations.
' (3) Palm Beach County Property Appraiser's office.
(4) Information presented where available.
' (5) Corrected -prior year figures incorrect.
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VILLAGE OF TEQUESTA, FLORIDA
Principal Taxpayers (Unaudited)
September 30,1998
Percentage
1998 of
Assessed Assessed
Taxpavers Twe of Business Valuation Valua 'on
County Line Plaza (K-Mart)
(TAMWEST) Shopping Center ~$ 9,822,514 2.68%
Tequesta Shoppes (Publix)
(RRC FL Three, Inc.) Shopping Center 7,200,020. 1.96
Tequesta Shoppes, Ltd. (Waterway Village)
(c/o Capital Management Lot A
Assoc., Inc.) ~ 3,802,061 1.04
Dorner Properties
(Bank of Palm Beach Undeveloped
& Trust Company) Real Estate ~ 3,797,095 1.04
Tequesta Business Professional Office
Associates Building ~, 2,700,000 .74
Tequesta Country Club Golf/Social Club ~' 2,581,132 .70
Barnett Bank (First National
Bank of Jupiter/Tequesta) Banking ~, 2,060,414 .56
Tequesta Fashion Mall Shopping Center `v 1,700,000 .46
202 Building Professional Office
(SHW Ltd.) Building ~ 1,653,366 .45
Gordon, John M. Trust ~° 1,631.000 .44
$36,947,602 10.07%
Source: Palm Beach County Property Appraiser's Office
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ii
Date of Incorporation:
VILLAGE OF TEQUESTA, FLORIDA
Miscellaneous Statistics (Unaudited)
September 30,1998
1957
Forms of Government: Council-Manager, 3 Councilmembers elected
' even years, 2 Councilmembers elected odd years
Municipal Elections: Non-Partisan
' Area:
' Miles of Streets:
Fire Protection:
Police Protection:
' Municipal Water Department:
' SanitarS Sewage:
' Storm Sewers:
Garbage Collection:
Electric Service:
' l
T
h
i
S
erv
e
ep
one
ce:
' Building Permits Issued:
Recreation and Culture:
Municipal Employees:
Approximately 2 square miles
Approximately 441ane miles
Number ofstations - 1
Number of certified firefighters - 16
Fire Rating - 6
Number of stations - 1
Number of certified officers - 16
Number ofdispatchers - 4
Number ofcustomers - 4,971
Average daily consumption - 2.43 million gallons
Miles of water mains -approximately 50 miles
Service provided by Loxahatchee River Environmental
Control District (ENCON)
Adequate coverage
Service franchised to Nichol's Sanitation
Frequency of service is bi-weekly
Florida Power & Light Company
Southern Bell Telephone & Telegraph Company
1,044
Number ofparks - 4, approximately 52 acres
Number oflibraries - 1, branch of Palm Beach County System
Number ofvolumes - 20,000 - 22,000
Full-time - 69
128
VILLAGE OF TEQUESTA, FLORIDA
Demographic Statistics (Unaudited)
Last Ten Fiscal Years
Education
Level in
Years of
Fiscal Population Per Capita Median Formal Unemployment
Year (1l Income 2 A e 2 Schooling (2) Rate 31
1989 4,479 $ 8.4%
1990 4,499 20,362 7.9
1991 4,508 9.7
1992 4,533 8.8
1993 4,551 9.2
1994 4,609 8.4
1995 4,623 7.0
1996 4,637 7.5
1997 4,686 3.6
1998 5,036 4.7
Sources:
(1) Palm Beach County Planning Board, University of Florida Estimates and Federal Census.
(2) U.S. Department of Commerce, Bureau of the Census. Information only available for years
provided.
(3) Job Service of Florida.
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NH
&M
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
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL
OVER FINANCIAL REPORTING BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENTAUDITING STANDARDS
The Honorable Mayor and Village Council
Village of Tequesta, Florida
EVERETT B. NOWLEN (ta3o-t9ea), CPA
EDWARD T. HOLT, CPA
WILLIAM B. MINER, CR4
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. MOUNA, CPA
RICHARD M. SOTHEN, 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 general purpose financial statement of the Village of Tequesta, Florida, as of
and for the year ended September 30, 1998, and have issued our report thereon dated January 21,
1999. In our report, our opinion was qualified because we were unable to obtain sufficient audit
evidence to support the Village's disclosure in Note 28 to the financial statements regarding year
2000 compliance. 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.
Compliance
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 21, 1999.
e
130
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS ~ ACCOUNTING FIRMS ASSOCIATED INC. '
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 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.
S~gr~ation ofDuties
There is inadequate separation of duties in some of the control cycles. The basic
premise is that no one employee should have access to both physical assets and the
related accounting records or to all phases of a transaction.
A material weakness is a 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 financial statements being audited may
occur and not be detected within a timely period by employees in the normal course of performing.
their assigned functions. Our consideration of the internal control 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 21, 1999.
This report is intended solely for the information and use of the audit committee, Village Council,
management, federal awarding agencies, and pass-through entities and is not intended to be and
should not be used by anyone other than those specified parties.
January 21, 1999
131
NN
&M
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
MANAGEMENT LETTER
The Honorable Mayor and Village Council
Village of Tequesta, Florida
EVERETT B. NOWLEN (ieao-isea), CPA
EDWARD T HOLT, CPA
WILLIAM B. MINEfl, 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
RICHARD M. SOTHEN, CPA
BELLE GLADE OFFICE
333 S. E. 2nd STREET
POST OFFICE BOX 338
BELLE GLADE, FLORIDA 33430-0338
TELEPHONE (561) 996-5612
FAX (561) 996-6246
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We have audited the general purpose financial statements of the Village of Tequesta, Florida as of
for the year ended September 30, 1998, and have issued our report thereon dated January 21, 1999.
In planning and performing our audit of the general purpose financial statements of the Village of
Tequesta, Florida for the year ended September 30, 1998, 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.
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 21, 1999, 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:
IJ
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132
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • ACCOUNTING FIRMS ASSOCIATED INC. '
PRIOR YEAR COMMENTS WHICH CONTINUE TO APPLY
' S~gr-e ation o~'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.
1 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
Finance Department for deposit. This system is hme 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.
133
CURRENT YEAR COMMENTS
Responsibility,for Grant Compliance
We noted that a variety of departments and staff have responsibility for certain
aspects of managing grants and monitoring compliance with grant requirements.
However, no one individual has overall responsibility for grant oversight.
We recommend that the Village designate an individual to have oversight
responsibility for grants.
COMPLIANCE WITH FLORIDA STATE STATUTES
Compliance with Florida Statute 218.503
Nothing came to our attention that would cause us to believe that the Village is or at
-any time during the fiscal year was in a state of financial emergency as defined in
Section 218.503(1), Florida Statutes.
Compliance with Florida Statute 218.32
The financial report for the Village of Tequesta, Florida to be filed with the
Department of Banking and Finance pursuant to Section 218.32(1)(b), Florida
Statutes is in substantial agreement with the accompanying financial audit report.
Oversight Unit and Component Units
The Village of Tequesta, Florida is a municipal corporation organized pursuant to
Special Act 57-1915, Laws of Florida, 1957. Based upon the application of criteria
defined in publications cited in Chapter 10.553, Rules of the Auditor General, the
Village has determined that the only component unit operating within the
jurisdiction of the Village that would be required to be included in the general
purpose financial statements of the Village, is the Village Employees' Retirement
System which is included as a pension trust fund.
Other Current Year Comments
Our audit did not disclose any further items that would be required to be reported
under Chapter 10.554(1)(f), Rules of the Auditor General.
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This report is intended solely for the information and use of the audit committee, Village Council,
management, federal awarding agencies, and pass-through entities and is not intended to be and
should not be used by anyone other than those specified parties.
January 21, 1999
135
F iE
,~~ ~~ VILLAGE OF TEQUESTA
~ Post Office Box 3273 357 Tequesta Drive
\,~ o` Tequesta, Florida 33469-0273 (561) 575200
3 o Fax: (561) 575-6203
F4CN CO <y 4v
February 25, 1999
Honorable Mayor and Village Council Members
Village of Tequesta, Florida
In their Independent Auditor's Report dated January 21, 1999, the auditors from Nowlen, Holt &
Miner, P.A. state that the financial statements present fairly, in all material respects, the financial
position of the Village. They have issued a qualified opinion due to the Year 2000 compliance
uncertainties.
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 130-135
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
Segrre~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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1
CURRENT YEAR COMMENTS
' Responsibility for Grant Compliance
t The Village has recently employed a Village Planner and her duties include grant
coordinating. In the future, she will be involved in all grants and have oversight
responsibilities.
Respectfully submitted,
,~~n~~ 7~
' Connie Holloman
Director of Finance
1
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