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CAFR_FY Ending_09/30/19941 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Comprehensive Annual Financial Report Village of Tequesta, Florida Fiscal Year Ended September 30, 1994 Ir 1 1 ' COMPREHENSIVE ANNUAL FINANCIAL REPORT VILLAGE OF TEQUESTA, FLORIDA September 30, 1994 Prepared by the Finance Department 1 VILLAGE OF TEQUESTA, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT September 30, 1994 TABLE OF CONTENTS Page Number Introductory Section Letter of Transmittal 1- 11 Certificate of Achievement for Excellence in Financial Reporting 12 Village of Tequesta Organization Chart 13 List of Principal Officials 14 Financial Section Independent Auditor's Report 15- 16 General Purpose Financial Statements Combined Balance Sheet--All Fund Types and Account Groups 17- 20 Combined Statement of Revenues, Expenditures and Changes in Fund Balances--All Governmental Fund Types and Expendable Trust Funds 21- 22 Combined Statement of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual-- Governmental Fund Types 23- 26 Statement of Revenues, Expenses and Changes in Retained Earnings--Proprietary Fund Type 27 Statement of Cash Flows--Proprietary Fund Type 28- 29 Notes to Financial Statements 30- 66 Supplemental Information General Fund Schedule of Revenues--Budget and Actual 67- 69 Schedule of Departmental Expenditures-- Budget and Actual 70- 78 Special Revenue Fund Schedule of Revenues--Budget and Actual 79 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 S 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 i VII.LAGE OF TEQUFSTA, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT September 30, 1994 TABLE OF CONTENTS (Continued) Page Number Financial Section (continued) Capital Projects Funds Combining Balance Sheet 80 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 81 Combining Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual 82- 83 Proprietary Fund (Farterprise Fund) Schedule of Operating Expenses--Budget and Actual 84 Comparative Summary of Operations--Fiscal Years Ended September 30, 1994 and 1993 85 Schedule of Restricted Accounts Under Revenue Bond Ordinance 86- 87 Amortization Schedule--Water Refunding Revenue Bonds -Series 1985 88 Fiduciary Funds Combining Balance Sheet 89 Statement of Changes in Assets and Liabilities -- Agency Fund 90 General Fixed Assets Schedule of General Fixed Assets by Source 91 Schedule of General Faced Assets by Function 92 Schedule of Changes in General Fixed Assets By Function 93 Required Supplemental Information -Firefighters' Retirement System 94- 96 Schedule of Insurance 97 r 1 VILLAGE OF TEQUESTA, FLORIDA ' COMPREHENSIVE ANNUAL FINANCIAL REPORT ' September 30, 1994 TABLE OF CONTENTS (Continued) ' Page ' Number Statistical Section ' General Revenues by Source 98- 99 ' General Government Expenditures by Function 100-101 Property Tax Levies and Collections 102 Taxable Value and Just Value of Taxable Property 103-104 ' Property Tax Rates--All Direct and Overlapping Governments Ratio of Net General Bonded Debt to Assessed Value and 105-106 ' Net Bonded Debt Fer Capita 107-108 Legal Debt Margin Computation of Direct and Overlapping Debt 109 110 ' Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures 111 Revenue Bond Coverage--Water Bonds 112-113 ' Property Value, Construction and Bank Deposits 114 Principal Taxpayers 115 Miscellaneous Statistics 116 t Demographic Statistics 117 ' Other Reports Independent Auditor's Report on Internal Control ' Structure Based on an Audit of General Purpose or Basic Financial Statements Performed in Accordance with Goverrvnent Auditing Standards 118-120 ' Independent Auditor's Report on Compliance Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 121-122 ' Management Letter 123-125 1 LJ '~I 1 1 1 1 1 VILLAGE OF TEQUESTA Post Office Box 3273 357 Tequesta Drive Tequesta, Florida 33469-0273 (407) 575-6200 Fax: (407) 575-6203 March 17, 1995 To the Citizens of the Village of Tequesta, Florida ' The Comprehensive Annual Financial Report of the Village of Tequesta, Florida for the fiscal year ended September 30, 1994, 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 lrnowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the financial position ' and results of operations of the various funds and account groups of Tequesta. All disclosures necessary to enable the reader to gain an understanding of Tequesta's financial activities have been included. ' The Comprehensive Annual Financial Report is presented in four sections: introductory, financial, statistical and other reports. The introductory section includes this transmittal letter, ' Tequesta's organizational chart and a list of principal officials. The financial section includes the general purpose financial statements and schedules, as well as the auditor's report on the general purpose financial statements. The statistical section includes selected financial and demographic ' information, generally presented on a multi-year basis. The other reports section includes the auditor's reports on internal control, compliance and the management letter. t This report includes all funds and account getups of Tequesta. Tequesta provides a full range of services. These services include police protection; fire and emergency medical service; the construction and maintenance of highways, streets and infrastructure; recreational activities ' and cultural events; and the operation of a municipal water supply system, in addition to general government activities. Tequesta contracts with a privately owned salutation company for refuse and recycling collection service. Tequesta's Fire-Rescue Department was initiated in fiscal year ' 1994. As such, the Firefighters' Retirement System is included in this report as a component unit, specifically as the Firefighter's Pension Trust Fund. Recycled Paler 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, and the economic condition and outlook of the government's ' growth potential for the next decade is excellent. For the seven year period, (1985 - 1991) property values increased an average of 8.2% ' per year. For the most recent three year period, (1992 - 1994), property values decreased an average of 1.7 % per year. Based on the historical data presented and current projections of property tax values, the ' Village will closely monitor this situation to ensure that any temporary negative developments will be immediately addressed with a fiscal policy necessary to maintain the financial integrity ' of the Village's financial position while keeping in mind the tax burden of our citizens. However, the recent tax base trends appear to have been directly related to national trends relative to commercial real estate value adjustments and the economic recession of the early ' 1990's. Recent indicators point to a positive turnaround in these important real estate sectors. OR INITIATIVES ' MAJ During the preparation of the 1994 budget, the Village was confronted with increased ' expenses in personnel operations and capital outlay. Additionally, due to the aforementioned property value decrease tax proceeds were projected downward. The Village's management ' addressed these concerns by: ° Reducing General Fund Contribution to the Capital Improvement Fund from $100,000 to $58,000. ' ° Using $35,000 of the General Fund Undesignated Fund Balance. ' ° Incorporating savings from initiation of the Tequesta Fire-Rescue Department. ' The major actions of significance during fiscal year 1994 were: 1993 was the first day of service for the newly created ° October 1 ' , Tequesta Fire-Rescue Department approved for implementation by referendum in March 1993. In addition to dollar savings, the Department enabled Tequesta to control the quality and level of service provided to its citizens. z ~ ' Issued the 1994 Improvement Revenue Refunding Bonds in the amount of $1,365,000 with an interest rate of 6.159b, which ' addressed the following needs after issuance costs were deducted from the Bond sale. ' * Constitution Park - a neighborhood park with property leased from the Jupiter-Tequesta Junior Citizens, providing playground equipment, heart trail, gazebo, volleyball courts, basketball courts and open space in the aggregate amount of $415,000. * Tequesta Fark - a regional park with proposed improvements consisting parking lot paving, ' landscaping, playground improvement and basketball court lighting for $318,000. * Country Club Drive -roadway improvements consisting of paving, striping, landscaping, irrigation and entrance signage, totalling $172,000. ' * Refinanced existing 1979 Series Bonds having an interest rate of 8.409b in the amount of $580,000. ' Renegotiation of the contract with Nichols Sanitation resulting in a reduction of Refuse and Recycling collection costs with a freeze ' for the immediate future years in exchange for an extension of the contract. ' INFRASTRUCTURE MAINTENANCE AND ERPANSION Maintenance and expansion of the commutity's general infrastructure (such as roads, bridges, sidewalks, storm water drainage systems, streetscape beautification projects, expansion ' of potable water treatment facilities and developmentlredevelopment of the Tequesta Town Center) remain a concern of Tequesta. To address this concern, the government has developed a five-year capital projects plan that provides a framework for the development and maintenance ' of infrastructure to meet current and future needs. This plan is revised each budget year in keeping with the priorities and needs of ' Tequesta. Also, changes affecting budget projections may require changes to the capital projects plan which will enable Tequesta to maintain adequate cash reserves and required fund balances. 1 3 The 1994 Capital Improvement Fund expenditures totaled $332,296 for the following improvements: r FEC Railroad $ 2,410 U.S. Highway One & Waterway Road 21,747 Country Club Drive Drainage 35,323 Dover Ditch Drainage 20,723 Tequesta Drive Streetscape 11,302 Tequesta Drive Improvement Project 1.959 93.464 Park and Recreation Imnr Tequesta Park Irrigation 57,212 Tequesta Park Improvements and Lighting 112,750 Tequesta Park Plan II Engineering 28,761 Constitution Park Improvements 4 1 238.832 Total 3 2 296 The Bond Construction Fund expenditures totalled $107,637 for the following improvements: Country Ciub Drive Improvements and Paving $107,137 Tequesta Park Improvements _ 5~ Total 1 6 7 4 _~ 1 1 1 1 1 The 1994 Proprietary Fund expenditures totaled $623,180 for the following improvements: Irr~provements Other Than Buildinpc Hydrophneumatic Tank LePark Heritage Oaks, Water Line Loop Jupiter Water Line Interconnect ' Production Wells Nos. 25, 26 and 27 Treatment Plant Landscaping Tequesta Drive Water Line Replacement 1 1 ~gu#pment and Svstem Renew la & Rp~lacement Machinery and Equipment Vehicle Purchase Meters, Valves and Hydrants A 1 A Water Main Painting Ir-;provements to Building Facility Improvements, ADA Total FINANCIAL INFORMATION $ 77,197 26,634 3,608 283,362 23,543 42.885 457.229 $ 18,127 10,195 17,379 117.640 62 1 The management of the government is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the government are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of the financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. ~ ' Budget~y Controls , In addition, Tequesta maintains budgetary controls. The objective of these budgetary ' controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the Village Council. Activities of the General Fund, Special Revenue Fund, Debt Service Fund, Capital Projects Fund and Proprietary Fund are included in the annual ' appropriated budget. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the individual fund level. The government also maintains an encumbrance accounting system as one technique of accomplishing ' budgetary control. Encumbered amounts Lapse at year end. However, encumbrances generally are re-appropriated as part of the following year's budget. As demonstrated by the statements and schedules included in the financial section of this ' report, Tequesta continues to meet its responsibility for sound financial management. General Government Ftinctioas ' vn ' The following schedule presents a summary of General Fund, Special Revenue Fund, Debt Service Fund, Capital Projects Fund, and Expendable Trust Fund revenues for the fiscal , year ended September 30, 1994 and the amount and percentage of increases and decreases in relation to prior year revenues. ' Percent Increase of Percent (Decrease) Increase ' Source Amount fo Total From 1993 (Decreasel Taxes $2,833,720 72.34% $167,572 6.2896 Licenses and Permits 198,000 5.05 9,523 ' 5.05 Intergovernmental 423,606 10.81 (108,090) (20.32) Charges far Services 189,691 4.85 168,387. , 790.40 Fines and Forfeits 4$, 885 1.25 2,848 ' 6.15 Interest 76, 819 1.96 11, 794 18.13 Miscellaneous 14,500 .37 (615) (4.07) Intergovernmental Services 132.175 3.37 10,275 8.43 TOTAL REVENUES 17 9 2 1 4 71 ' Taxes accounted for the major source of revenues and the most significant increase in actual revenues received for 1994. Tax revenues consist of three distinct sources: ad valorem ' property tax, franchise fees and utility service taxes. The ad valorem property tax rate for 1994 was 5.9140 mills, an increase of 2.496 over the previous year's millage rate of 5.9000 mills. Such increase was required to balance the General Fund Budget. Ad valorem property tax ' values decreased .5% from $344,814,635 the previous year to $343,161,444 for 1994. 6 ' The most significant increase in revenues is reported to Charges for Services, which ' reflects the charges for Fire Rescue Service provided by contract to Jupiter Inlet Colony. rted to Intergovernment, as a result of ' The most significant decrease in revenues is repo meet of 79 Series Bonds called revenues of the Special Revenue Fund, being applied to tine pay in 1994. resented indicates attention must be given to the Our analysis of the revenue data p effect such decreases possibility of future ad valorem taxabl~vfor a overnrem nt oPerations~ng could have on the Tequesta millage ra g F~xn~nditures The following schedule Presents a summary of General Fund, Special Revenue Fund, Debt Service Fund, Capital Projects Fund, and Expendabl rcTen st e f increases and decreases fiscal year ended September 30, 1994, and the amount and pe tag in relation to prior year amounts: Percent Increase of e Percent of T~ (Decrease) rom 1 3 Increase cr s , ,_mount General Government $ 675'054 47 50~ $(54, 0) 9.33% (2.43) Public Safety 2,198,202 (4,594) (1~•~) Fhysical Environment i 415,015 8.97 (2,795) (.O1) 59 5 on Transportat Human Services 624 .O1 65 2 33 (3,343) . (2.66) Culture and Recreation 122,703 413 912 . 19.71 g 1,703 9.84 Capital Outlay , Debt Service Principal 221,383 4.78 186,383 819) (8 500.33 (17.08) Interest 42,841 4 2 .92 _87- , X47 2,000.13 Fiscal Charges 2 4 7 ~ (~~~ 2 14 "~` Total Expenditures Debt service principal expenditure reflected the mose lip moment o $54,417, for previous year. Such expenditures ~ a p12ied ~ twhe advanced refun~8 of the 1979 Senes the 100' tower fire truck and $ P Bonds. The increases in Interest and Fiscal Charges were associated vv~th the 1994 Revenue Bond issuance. 7 i ~'~ ' .-::4' ate o f ~-.~:,. Certlflc ~-~.a.:: Achlevem - in~S' f or Excellence • racial .F In Fina f~~ ~ r~`'`rj' - a. Reporting Presented to Village of Tequesta, Florida For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 1993 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. ~~~-- 4 m~ ~ President ~~ o~ ~~~ `~~~~ Executive Director 12 VILLAGE OF TEQUESTA ORGANIZA TION CHART w VII.LAGE OF TEQUF.S'rA, FLORIDA Council -Manager Form of Government VII.LAGE COUNCIL - 1993-1994 Ron T. Mackail Mayor William E. Burckart Vice-Mayor Joseph N. Capretta Councilmember Earl L. Collings Councilmember Elizabeth A. Schauer Councilmember yII.LAGE OFFICIALS Thomas G. Bradford Village Manager John C. Randolph Village Attorney (Jones, Foster, Johnston & Stubbs, P.A.) Joann Manganiello Bill C. Kascavelis James M. Weinand Carl R. Roderick Scott D. Ladd Gary Preston Thomas C. Hall Assistant to Village Manager/Village Clerk Director of Finance Chief, Fire Rescue Department Police Chief Building Official Director, Public Works & Recreation Water System Manager INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS Nowlen, Holt & Miner, P.A. 14 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 FINANCIAL STATEMENTS WITH INDEPENDENT AUDITOR'S REPORT THEREON ' SEPTEMBER 30, 1994 1 THIS PAGE INTENTIONALLY LEFT BLANK 1 1 ' ,' NOWLEN, MOLT & MINER P.A. ` CERTIFIED PUBLIC ACCOUNTANTS 215 FIFTH STREET ' SURE 200 POST OFFICE BOX 347 WEST PALM BEACH, FLORIDA 33402.0347 TELEPHONE (407) 859-3080 ' FAX (407) 835-0828 EVERETT B. NOWLEN, CPA (1930-1984) KATHLEEN A. MNIER, CPA - EDWARO T. HOLT, CPA R. GREGORY SMRH, CPA J. MICHAEL STEVENS, CPA WILLIAM B. MINER, CPA ROBERT W. HELMREICH, CPA MARK B. ELH40W, CPA ' ROBERT W. HENDRIX. JR., CPA TERRY L. MORTON. JR., CPA DAN~LA' E. RUSSELL, CPA JANET R. BARK;EVX;H, CPA N- RONALD BENNETT, CPA DONALD W. WILLIAMS, CPA IlvDEPENDENT AUDITOR'S REPORT MEMBERS AMERICAN NSTRUTE OF CERTIFE:D PUBLIC ACCOUNTANTS FLORIDA MISTRUTE OF CERTIFIED PUBLIC ACCOUNTANTS ACCOUNTING FIRMS ASSOCIATED NVC- BELLE GLADE OFFICE 333 S.E. Znd STREET POST OFFICE BOX 338 BELLE GLADE. FLORIDA 33430-0338 TELEPHONE (107) 998.5812 FAX (407) 998.8248 The Honorable Mayor and Village Council Village of Tequesta Tequesta, Florida We have audited the accompanying general purpose financial statements of the Village of Tequesta, Florida, as of September 30, 1994, and for the year then ended, as listed in the table of contents. These general purpose financial statements are the responsibility of the Village's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion; the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Village of Tequesta, Florida, as of September 30, 1994, 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. 15 1 We have also reviewed the accounting requirements of the bond ordinances associated with both , the Improvement Revenue Bonds, Series 1979 and Water Refunding Revenue Bonds, Series 1985, relating to the benefits and application of funds. In our opinion, based on our audit of ' the general purpose financial statements, the Village has complied with such provisions. It should be noted that information obtained on the basis of our audit of the general purpose financial statements would not necessarily disclose defaults of a nonaccounting nature. ' Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The supplemental information listed in the table of contents are ' presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Village of Tequesta, Florida. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, ' in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. We did not examine the statistical data as set forth in the table of contents and, therefore, ' express no opinion thereon. January 17, 1995 L~ 1 16 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 GENERAL PURPOSE FINANCIAL STATEMENTS 1 VILLAGE OF TEQUESTA, FLORIDA Combined Balance Sheet -All Fund Types and Account Groups September 30, 1994 ' Governmental Fund Typ~ _ ' S ial Debt P~ Ca ital P General Revenue Service Projects ' Assets and other debits Cash and cash equivalents $149,319 / $ $ 349,922 $ 150,107. ' Investments ~ 706,517 928,020 Accounts receivable (net of allowance for ' uncollectibles) 10,966 / Due from other funds 41,582 81,810 / Due from other t governments 27,424 Prepaid expenditures 136 ~ ' Inventories of supplies 735 r' Unamortized debt issue costs Restricted assets t Cash and cash equivalents Investments Fixed assets ' Amount to be provided for retirement of general long-term debt ' Total assets and other debits 1 137 2 2 ~ 149 19 ~ 1 159 937 ~ 1 1 1 17 , 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Proprietary Fiduciary Fund Typg Fund Types Account Groups Trust General General Totals and Fixed Long-Term (Memorandum Enterprise Agency Assets Debt Onlyl $ 157,759 ~ $ 1 766 $ $ $ ~ 808,873 ~ ~ 1,237,107 ~ , 320 965/ ~ 3,192,609-~~"" ~ ~. , 240, 837 251, 803 ~ 4,415 / 127,807 27,424 ~ 000f S 5,136 , 30,414 31,149 13,711 / 13,711 ~ 567,663 / \ 567,663' 1,970,556 ~ \ 1,970,556' 5,908,215/ 2,263,671/ 8,171,886 2.038.886 2,038.8861. $10.131,262 ~ 27 14 2 2 7 / 2 86 $17,207,503 (Continued) 18 VILLAGE OF TEQUESTA, FLORIDA Combined Balance Sheet -All FFund Types and Account Groups September 30, 1994 (Continued) Liabilities, equity and other credits Liabilities Accounts payable Accrued liabilities Payable from restricted assets Accounts payable Deposits Due to other funds Due to other governments Deferred revenue Contracts payable Deferredppcooompensation payable CCapntarized leases Water refunding revenue bonds Compensated absences Obligations under capitalized leases Improvement revenue bonds payable Water refunding revenue bonds payable Unamortized debt discount Total liabilities Equity and other credits Investments in general fixed assets Contributed capital Retained earnings Reserved for revenue bond debt service and capital improvements Unreserved Fund balances Reserved for: Capital improvements Inventory of supplies and prepaids Law enforcement Employees' retirement plan Recreation and parks Encumbrances Unreserved Designated for: Compensated absences Equipment purchase ~ ~ Road project~~,~ ~- ~ ~~ ~ ~~~~-~-~ ~~~' Undesignated Total equity and other credits Total liabilities, equity and other credits $ $ 102,247 ~ Governmental Fund Types ' Special Debt Capital ' General Revenue rvi Protects $ 42,215 ~ $ 64,440 4,415 21,906 ~ 3,474/ 50, 86b j 3,171 1 1 4 50,866 105.418 ' 871 98,750 37,038 38,325 23,750 802.098 1.000,832 1 1 7 282 98,453 98.453 149 319 780,998 ' 63,750 ' 4~t~''~~~~~~G' ~/~,34.4'~' 157,427 1,054,519 ' 1 159 9 7 1 19 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Proprietary F d T Fiduciary un ~ ~ r i rust and ene Fixed ene Long-Term Totals - (Memorandum Enterprise Agency Assets ~ Unly,~_ $ 9 520 $ $ $ ~ 279'9 0 5; 6 7 2 2 X 200, 5 200; 5 123,392 127,807 90 73Q 69 115,3 1 ; 3,171 237,364 237,364 7,249 7,249 146 4 9 29 02)1 ,5 253,072 9;6 8,671 420,814 429,485 1,365,000 1, ' 420,000 420 000 (6.962) X6:9621 1.167.689 237.364 2.038.886 3.736.673 2,263,671 2,263,671 3,290,877 3,290,877 2,334,890 2,334,890 3,337,806 3,337,806 780,8 8 7 2,516 2,516 87,266 87,266 98,750 100,788 38,325 23,750 52,344 1.057,978 8,963,573 89.782 2.263..671 13,470.830 1 1 1 262 27 146 2 26 71 $2.U~ $17.207.503 See notes to financial statements. 20 VII.LAGE OF TEQUESTA, FLORIDA ' Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - All Governmental Fund and Expendable Trust Funds For the Fiscal Year.nded September 30, 1994 ~! Revenues Taxes $2,240,156 , Licenses and permits 125,758 Intergovernmental 337,466 Charges fvr services 189, 691 ' Fines and forfeits 48, 885 Interest 57,293 Impact fees 300 Miscellaneous 14, 200 ' Intergovernmental services 132.175 Total revenues 14 4 ' Ex nditures Current General government 675,054 ' Public safety 2,198,202 Transportation 415,015 Human seances 624 Culture/recreation 122,703 ' Ca ital outlay 472,480 Debt service Principal retirement 54,417 ' Interest 2,241 Fiscal charges Total expenditures 4 7 ' Excess of revenues over (under) expenditures (794.812) Other financuig sources (uses) D b ' e t proceeds Sales of surplus material 25,624 Operating transfers in 705,338 ' Operating transfers out (65,500) Payment to refunded bond escrow agent Total other financing sources (uses) 665.462 ' Excess of revenues and other sources over (under) expenditures and other uses (129 350) ' Fund balances, October 1, 1993 1 2 Fund balances, September 30, 1994 1 0 0 ' z, ~ 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Fiduciary G overnmental Fund Types n T Totals Special Debt Capital Expen le (Memorandum _ Revenue ervi Pro ec Trust Fund Only,) $ 593,564 $ $ $ $2,833,720 72,242 198,000 86,140 423,606 189,691 48,885 3,907 15,619 76,819 300 14,200 132,175 751 46 3.907 15 1 3.917,396 675,054 2,198,202 415,015 624 122,703 439,933 912,413 166,966 221,383 40,600 42,841 4 2 37,800 40.252 21 18 477 7 4.628.487 7 1 4 1206.111) X462,114) X711.091) 430,434 934,566 1,365,000 25,624 85,581 289,809_ 1,080,728 (706, 377) (771, 87'7) 4 4 4 (430.434) 7 7 85.581 1.224.375 1.269,041 45,569 (120,530) 762,261 557,950 52.884 120.530 292.258 2.516 1.598.370 45 1 0 4 19 ~ 2 1 2 See notes to financial statements. 22 VILLAGE OF TEQUESTA, FLORIDA Combined Statement of Revenues, Expenditures, and Changges in Fund Balances - Budget and Actual Governmental Fund Types For the Fiscal Year Ended September 30, 1994 1 i Revenues Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeits Interest Impact fees Miscellaneous Intergovernmental services Total revenues Ex nditures Current General government Public safety Transportation Human services Culturelrecreation Capital outlay Debt service Principal retirement Interest Other debt service costs Total expenditures _ General Fund anance -- ' Favorable Bu et Actual (Unfavorable) $ 2,084,595 95,000 287,900 184, 370 33,500 44,000 32,250 132,175 2,893.790 694,957 2,232,465 432,625 133;2 0 544,413 4.039.740 Excess of revenues over (under) expenditures (1.145.950) $2,240,156 125,758 337,466 189,691 48,885 57,300 14,200 132,175 _3,145.924 675,054 2,198,202 415,624 122,703 472,480 54,417 2,241 3940.736 X794, 812) $ 155,561 30,758 49,566 5,321 15,385 13,300 (18,050) 252,134 19,903 34,263 17,610 71'933 ((2;241 351.138 Other financing sources (uses) Debt proceeds Sales of surplus materials 500 25,624 25,124 Operating transfers in 900,000 705,338 (194,662) Operating transfers out (65,500) (65,500) Payment to refunded bond escrow agent Total other financing sources (uses) 835,000 665,462 1169,538) Excess of revenues and other sources over (under) expenditures and other uses lU~950) (129,350) 1 1 Fund balances, October 1, 1993 1.130.182 Fund balances, September 30, 1994 100 2 ii 1 1 1 23 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 S y~i~1 Revenu e Fund, anance - Favorable Bu Actu (Unfavorable) $ 790,100 $ 593,564 $(196,536) 72,000 72,242 242 129,000 86,140 (42,860) Debt Service Fun v anance - Favorable Budp,~t Actual fLTnfavorable) $ $ $ 2,500 3,907 1,407 991,100 7 1 4 (239.154) 2.500 3.907 1 4 7 991.100 7 194 X239.154) (1,003,150) (706, 377) 296, 773 (1.003,150) (706.377) 2 77 12 45,569 7 1 52.884 98 4 _i 40,000 166,966 (126,966) 63,500 40,600 22,900 1.500 4 2 (952) 105.000 21 1 (10.018) (102.500) 2 111 (103,611) 430,434 430,434 103,150 85,581 (17,569) 4 4 4 X430.434) 1 1 85,581 (17,569) (120,530) x,12®180) 120,530 ~~ (Continued) 24 FLORIDA VILLAGE OF TE UESTA ' Q , Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual ' Governmental Fund Types For the Fiscal Year Ended September 30, 1994 (Continued) ' Capital Projects Fun ds Vance - Favorable ' Bu a Actual (iJnfavorable) Revenues Taxes $ $ $ Licenses and permits ' Intergovernmental Charges for services Fines and forfeits Interest 2,500 15,619 13,119 ' Impact fees Miscellaneous Intrrgovernmental services ' Total revenues 2,500 15.619 13.119 Expenditures C ' urrent General overnment Public s~ety Transportatton Human services ' Culture/recreation Ca ital outlay 1,513,385 439,933 1,073,452 Debt service ' Principal retirement Interest Other debt service costs 37.800 733 385 477 513 i (37.800) 652 1 035 , . , Total expend tures 1 . . Excess of revenues over (under) expenditures 11.510,885) (462.114) h i O fi 1.048,771 er nanc ng sources (uses) t Debt proceeds 905,000 934,566 29,566 Sales of surplus materials Operating transfers in 381,810 289,809 (92,001) , Operating transfers out Payment to refunded bond escrow agent Total other financing sources (uses) ,~,~86,810 1.224.375 (62.435) ' Excess of revenues and other sources over (under) expenditures and other uses 224 762,261 $$ 9~~t ' Fund balances, October 1, 1993 292 258 Fund balances, September 30, 1994 1 4 519 ' 1 u ~ ' m 1 anance Favorable ' Budeet Actual (Unfavorable) $ 2,874,695 $ 2,833,720 $ (40,975) 167, ~ 423 3b ' 4I6,9 00 ;606 ;706 184,370 189,691 5,321 33,500 48,885 15,385 ' 49,000 76,300 27'3(m 32,250 14,200- (18,050) ' 132.175 889 890 3 132.175 917 3 396 27 , . . . 1 694 957 b75 054 903 19 , , , 2,232,465 2,198,202 34,263 432,625 415,015 17,610 ' 280 70 577 0 133; 122, 3 1 ; 2,057,798 912,413 1,145,385 ' 40,400 221,383 (181,383) 63,500 42,841 20,659 1.500 40.252 _5,8,752) I 5.658,125 4.628.487 1.029.638 (1.768.235) 1711.091) 1,057;,144 905 000 X 1 365 000 ~ 460 000 500 25;624 25;124 1,384,960 1,080,728 (304,232) (1,068,650) 771,87 296,773 4 4 4 X430.434) 1.221,81Q 1.269.041 47.231 $ (546.425) 557,950 1 4 7 1.595.854 21 8 See notes to financial statements. 26 VILLAGE OF ~UFSTA, FLORIDA Statement of Cash Flows - Proprietary Fund Type For the Fiscal Year Ended September 30, 1994 Cash flows from operating activities: Net operating income Ad}ustments 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 liabilities Deposits Compensated absences Due to other funds Due to other governments Net cash provided by operating activities Cash flows from noncapital financing activities: Operating transfer to other fund Contribution ex nditures prepaid nonoperating pe Net cash used for noncapital financing activities Proprietary F nd vie n ri $ 407,514 355 , 803 899 16,270 (10,437) (5,039) 2,662 9,008 (677) 104,563 47 6 g7 8 0 (316,351) (10,00) ~OQO) 1! 1 ii 28 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Proprietary Fund Types Enterprise Cash flows from capital and related financing activities: Capital contributions $ 212,340 Acquisition and construction of fixed assets (486,993) Principal paid on revenue bonds and equipment leases (273,235) Interest paid on revenue bonds (107,432) Fiscal chazges paid on revenue bonds (3,529) Payments on construction contracts 2 41 Net cash used for capital and related financing activities 67S 9,390) Cash flaws from investing activities: Proceeds from redemption of investments (122,534) Interest received on investments 17 1 9 Net cash provided by investing activities 55.655 Net increase in cash and cash equivalents (79,256) Cash and cash equivalents, October 1, 1993 804.678 Cash and cash equivalents, September 30, 1994 72 4 2 Noncash, Investing, Capital and Financing Activities Contribution of fixed assets from contractors $ 23,402 Construction contracts payable 115,390 See notes to financial statements. 29 VILLAGE OF TEQUESTA, FLORIDA ' Notes to Financial Statements September 30, 1994 , NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES t Reporting Entity ' The Village of Tequesta is a municipal corporation organized in 1957 under the laws of the State of Florida (Florida Statutes, Chapter 165). The Village has aCouncil-Manager farm of govern- , ment. The Village's major operations include public safety (police, fire rescue), streets and roads, culture and recreation, public improvements, planning and zoning, water service and general and administrative. ' In accordance with Statement 14 of the Government Accounting Standards Board, the underlying concept of the governmental financial reporting entity is that governmental organizations are ' responsible to elected governing officials; therefore, financial reporting should report the elected officials' accountability for -those organizations. Furthermore, the financial statements of the reporting entity should allow users to distinguish between the primary governments and its , component units (if any) by communicating information about the component units and their relationships with the primary government. A component unit is a legally separate organization for which the elected officials of the primary government are financially accountable. ' Determining factors of financial accountability include appointment of a voting majority, imposition of will, financial benefit or burden on a primary government or fiscal dependency. In addition, component units can be other organizations for which the nature and significance ' of their relationship with a primary government are such that exclusion would cause ~ the reporting entity's financial statements to be misleading or incomplete. Based upon application of these criteria, the Village of Tequesta has determined that except for ' the firefighters' retirement system, there are no additional governmental departments, agencies, institutions, commissions, public authorities or other governmental organizations operating within ' the jurisdiction of the Village that would be required to be included in the general purpose financial statements of the Village. 1 1 L 30 1 ' VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements ' September 30, 1994 ' NOTE 1 -SUMMARY OF SIGNIFICANT ACQOUNTING POLICIES (Continued) The Reponir48 EruitX (Continued) Firefighters' Retirement System ' The V' e's r ular full-time em to ees who are sworn firefi hters are eli ible ~ ~ P y g g to participate in the Firefighters' Retirement System (FRS). FRS functions for the benefit of these employees and is governed by a five member board, of which the Village Council appoints two. The Village and FRS participants are obligated to fund all FRS costs based upon actuarial valuations, with the Village funding t the difference between member and other contributions and the actuarial cost. Based on these factors, it has been concluded that the FRS is fiscally dependent on the Village of Tequesta, which makes the FRS a component unit of the ' Village. Since the FRS provides services exclusively for the benefit of the Village, the FRS ~ is reported as a blended component unit, specifically as the Firefighters Pension Trust Fund. B is o Pr nt 'on - Accounti The government uses funds and account groups to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid ' financial management by segregating transactions related to certain government functions or activities. ' A fund is a separate accounting entity with aself-balancing set of accounts. An account group, on the other hand, is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net ' expendable available financial resources. Funds are classified into three categories: governmental, proprietary and fiduciary. Each ' category, in turn, is divided into separate "fund types". ~, ~ VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1994 NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) is o~ Presentation -Fund Accounting (Continued) 1 The following are the fund categories, funds and account groups used by the Village: Governmental Fund 7tines ' 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), the acquisition or construction of general fixed assets (capital projects funds), and the servicing of general long-term debt (debt service 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 of the Vill a accumulates certain revenues as ' required by the Improvement Revenue Bonds, Series 1979 and the Improvement Revenue Refunding Bonds, Series 1994. ' The following revenues were accounted for in the Special Revenue Fund as , required by the 1979 Bonds: Franchise fees ' Utility services taxes State revenue sharing Occupational licenses ' After the refunding of the 1979 Bonds and the issuance of the 1994 Bonds, the following revenues were accounted for the Special Revenue Fund as required by , the 1994 Bonds: Franchise fees ' Occupational licenses The Debt Service Fund of the Village accumulates monies for payment of the Improvement Revenue Bonds, Series 1979. As of September 30, 1994, the Bonds were refunded and the fund was closed. ~~ ~ ' VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1994 ' NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) ' Pasis of Presentation -Fund Accounting (Continued) C'~overnmental Fund 71~nes (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 Proprietary Fund). The Village has established the following two capital projects funds: Bond Construction Fund Capital Improvement Fund ' All pital projects funds were established to be used for capital expenditures required by continued growth of the Village. ' Proprietary F~pe ' Enterprise Fund The Enterprise Fund is used to account for operations that are financed and ' operated in a manner similar to private business enterprises -where the intent of the governing body is that the costs (expenses, including depreciation) of ' providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. The Enterprise Fund of the Village is the Water Fund which accounts for the provision of water services ' and refuse and recycling services to the residents of the Village and some residents of the County. All activities necessary to provide such services are accounted for in this fund including, but not limited to, administration, ' operations, maintenance, financing and related debt service and billing and collection, ' Because refuse and recycling fees are billed along with the water service charges and the refuse and recycling services are subcontracted which results in minimal administrative costs to the Village, a separate enterprise fund is not considered necessary. » ~ VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1994 NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of Presentation -Fund Accounting (Continued) ~ronrietary Fund 7}~pe (Continued) The proprietary fund is accounted for on a cost of services or "capital main- tenance" measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with its activity are included on its balance sheet. The reported fund equity (net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in net total assets. Capital outlays for assets that cost $500 or more and have expected lives of greater than one year are capitalized and depreciated in the proprietary fund. Depreciation of exhaustible fixed assets is charged as expense against the opera- tions. Accumulated depreciation is reported on the proprietary fund balance sheet. Depreciation has been provided over the estimated useful lives using the straight-line method. The estimated useful lives are as follows: Buildings 40 years Improvements 20 - 25 years Equipment 4 - 10 years Fiduciary Fund Types Pension Trust, Expendable Trust and Agency Funds Fiduciary Funds account for assets held by the government in a trustee capacity or as an agent on behalf of others. Trust funds account for assets held by the government under the terms of a formal trust agreement. The Pension Trust Fund is accounted for in essentially the same manner as the proprietary funds, using the same measurement focus and basis of accounting. The Village has one pension trust fund, the Firefighters Pension Trust Fund to account for its retirement system for firefighters. 1 34 VILLAGE OF TEQUESTA, FLORIDA ' Notes to Financial Statements September 30, 1994 (Continued) n,.,,~er~nrinn - Fund Accounting (Continued) Basis of Fid~~riarv F14~3d T1'De (Continued) The Expendable Trust Fund is accounted for in essentially the same manner as the governmental fund types, using the same measurement focus and basis of accounting. Expendable trust funds account for assets where both the principal and interest may be spent. the Special Law Enforcement Trust The Village has one Expendable Trust Fund, hce department to be expended Fund, to account for forfeitures received by ~esec ~ by Florida Statute Chapter for certain law enforcement purposes as p 932.704. The Agency fund is custodial in nature and d dsoa er ~~n~~for using the or have a measurement focus. Agency fu modified accrual basis of accounting. This funds s ulsed to account for assets that the government holds for others in an agency pac tY The Village has one Agency Fund, the ICMA Retirement Fui~ ~g deferred of custodial funds held on behalf of Village employees rep compensation. A~rrnult TO(4DS General Fixed Assets Account Group lied to the fixed assets associated with ' The accounting and reporting tTea`tme°t app ovemmental funds are a fund are determined by its measurement focus. All g _ accounted for on a spending or "financial flow" measurement f ~cluded on then ' that only current assets and current liabilities are generally balance sheets. Their reported fund balances (net current assets) are considered a measure of "available spendable resources" Governmental fund operating revenues and other financing sources) and decreases ' statements present increases (expenditures and other financing uses) m net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. 35 FLORIDA , VILLAGE OF TEQUESTA, Notes to Financial Statements ' September 30, 1994 (Continued) B i A '~ (Continued) taxes, special assessments, licenses, Those revenues susceptible to accrual are franchise fees, for services. Sales taxes collected interest revenue, intergovernmental revenues, and chare ~~ are cognized ~ revenue. Fines and held by the state at year end on ~ le ~ ac~creiiVal mouse generally they are not measurable and permit revenues are not suscep until received in cash ro rie fund types, pension trust funds and The accrual basis of accounting is utilized by P P ~7' nonexpendable trust funds. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The government reports deferred revenue on its co e b ~~urable" and "available"criteria for arise when a potential revenue does not meet both th _ ninon in the current period. Deferred revenues also ari ~t mom~uare received p o bo recog the government before it h ex l na ~r~m~ subsequen periods, when both revenue recognition ty the incurrence of qualifyu-g Pe the liabili for criteria are met, or when the government has a legal claim to the resources, deferred revenue is removed from the combined balance sheet and revenue is recognized. T„r,.; .^,.:. ~ Co fined Statements e Total columns on the combined statements are captioned "Memorandum Only" to indicate Th that they are presented only to facilitate financial an oy~siis• Dam g~ ~COIa~~ acccounting financial position, or results of ©perati ble tv consolidation. Interfund eliminations have not principles. Neither is such data compara been made in the aggregation of this data. 38 1 VILLAGE OF TEQUES'I'~-, FLORIDA Notes to Financial Statements September 30, 1994 t (Continued) B B A ante ration is employed as a management control device during the year for Formal budgetary ~ g ital projects Fund. All the General Fund, Special Revenue Fund, Debt Service Fund and Cap' meat also budgets are legally enacted through Passage ° Serv~Fund through the use ofDbcp nd indenture maintains control over expenditures of the Debt provisions. ets for the General, Special Revenue, Debt Service and Capi ~ For budgeting purPOSe~s, Budg enerally accepted account-ng pnnC1P on a basis consistent with g current year encumbrances are not treated as expenditures. Villa a follows these procedures in establishing the budgetary data reflected in the financial The g statements: 1, Prior to September 1, the Village Manager su~ ~m a c~ng 1 the following proposed operating budget for the fiscal y October 1 The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. prior to October 1, the budget is legally enacted through Passage of a resolution. 3. Chan es or amendments to the total budgeted fund expenditures must be approved by the Village g Council. Management may make unlimited interfunctionalostran~e~rs~Ve ~ of the budgetary seeking council approval. However, in order to make them ssible. process, it is the policy of the Village to del vel and expenditures may notslegally exceed Appropriations are legally controlled at the fu budgeted appropriations at that level. During the year three supplemental appropriations were made. 39 1 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1994 receivable of $240,837 are stated net of a $2,~ allowes totali go$34,5164. ants and Accounts $208,273 and unbllled revenu consist of billed revenues totaling F FIXED A E A summary of changes in general fined assets follows: Balance Balance September 30, October 1, 1993 ~ p i' D 1 i n 1994 - $ $ $ 234,728 Land $ 234,728 294,333 Buildings 294,333 Improvements other than buildings 261,021 47 9 2,243 ~ ~ 258,778 1 47 2 1 5 Equipment 18 7 89 9 22 f fixed assets at September 30, 1994 are summarized as follows: The components o General Enterprise ~~_ Fixed Assets Arrtii~ilt Grou_n .~.,,~~~ Total- $ 83,336 $ 234,728 $ 318,064 535 685 Land 391,202 294,333 , Buildings Improvements other than 8 225 170 258,778 8,429,003 begs Machinery and equipment , , 331,288 9?5 62 1,475,832 ~~- 1,807,120 __ 93 Construction in progress __ 9,901,413 2,263,671 12,165,084 3 19 Accumulated depreciation ~s ~~~$ ~'- 5 21 2 2 71 8 171 88 Total 46 i ' VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements ' September 30, 1994 NOTE 5 -COMPONENTS OF FIXED ASSETS (Continued) ' Significant construction commitments as of September 30, 1994 are as follows: Estimated Cost Cost to Completion Description to Date Complete Date ' E rprise Fund Wells with pipelines #25, ' 26 and 27 $875,672 $1,225,610 9/30/97 LePark/Heritage Oaks Loop 27,875 35,000 9/30/95 ' General Fund ' Tequesta Library di E i d L 361,110 110 000 12/31/95 9/30/96 an ng astw n , ' NOTE 6 -CAPITALIZED INTEREST/INTEREST EXPENSE ' For the year ended September 30, 1994, the Village capitalized $57,502 of interest cost in the Enterprise fund. The total interest expense incurred for the Enterprise fund prior to capitalization for the year ended September 30, 1994 was $107,432. NOTE 7 -DEFINED BENEFIT PENSION PLAN ' All Village full-time employees, except fireman who are eligible to participate in the Firefighters Retirement System, participate in the noncontributory Florida Retirement System, acost-sharing multiple-employer public employee retirement system. The payroll for employees covered by the System for the year ended September 30, 1994 was $1,624,930. The Village's total payroll was $2,041,175. ' 47 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1994 ~10TE 7 -DEFINED BENEFIT PENSION PLAN (Continued) All Village full-time employees are eligible to participate in the System as authorized by Chapter 121 of the Florida Statutes. The Florida Retirement System has five classes of membership. Village employees belong to three of the five classes, the senior management service class (SMSC) consisting of the Village Manager, the regular class (RC) consisting of administrative, operations and clerical employees, and the special risk class (SRC) consisting of law enforcement officers. Employees who retire at or after age 62 (age 55 for SRC members) with ten years of credited service are entitled to a retirement benefit, payable monthly for life, equal to 2.0 % (SMSC), 1.60 to 1.6896 (regular class) and 2.02 to 3.0% (SRC) of their average final compen- sation for each year of credited service, depending on the years served. Average final compensation is the employee's average of the five highest years of credited service, depending on the years served. Benefits fully vest on reaching ten years of service (seven years for SMSC members). Vested employees may retire at or after age 55 and receive reduced retirement benefits. The System also provides death and disability benefits. Benefits are established by State statute. The Village's actuarially determined contribution requirement for the year ended September 30, 1994 was $345,310. The actual contribution made was $345,310 (General Fund $279,670, Enterprise Fund $65,640). The contribution equaled 21.25% of current covered payroll. The Village is required by statute to contribute at rates as of September 30, 1994 of 23.61 % of covered payroll for senior management service class, 17.6496 of covered payroll for regular class and 27.5796 for special risk class. These rates included 0.5496 for the employer health insurance subsidy contribution, which is the same for all risk classes. Because this is a non-contributory plan, no employee contributions are required. The "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step-rate benefits, estimated to be payable in the future as a result of employee service to date. The measure, which is the actuarial present value of credited projected benefits, is intended to help users assess the System's funding status on agoing-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among PERS and employers. The System does not make separate measurements of assets and pension benefit obligation for individual employers. The pension benefit obligation at July 1, 1993 (the latest available information) for the System as a whole, determined through an actuarial valuation performed as of July 1, 1993, was $39.7 billion. The System's net assets available for benefits on that date (valued at market) were $31.7 billion, leaving an unfunded pension benefit obligation of $8.0 billion. 1fie Village's actuarially determined contribution requirement represents less than one percent of all contributions. 48 ~I 1 1 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1994 NOTE 7 -DEFINED BENEFIT PENSION PLAN (Continued) The Village has no responsibility to the System other than to make periodic payments required by state statutes. Ten-year historical trend information showing the System's progress in accumulating sufficient assets to pay benefits when due is presented in the System's June 30, 1993 comprehensive annual financial report. ' NOTE 8 -FIREFIGHTERS' PENSION TRUST FUND The Village established the Firefighters' Retirement System, asingle-employer defined benefit ' pension plan, in accordance with Florida Statutes, Chapter 175 on September 7, 1993. The plan is mandatory for all full-time firefighters and is included in the financial statements as a pension trust fund. PLAN DESCRIP'T'ION AND PROVISIONS ' The followin descri tion of the retirement lan is rovided for eneral information u se g P P P g P~ only. Plan participants should refer to the appropriate source documents for more complete ' information on the plan. ' The plan provides retirement benefits as well as death and disability benefits. All benefits vest after ten years of credited service. The payroll for employees covered by the plan for the year ended September 30, 1994 was $398,905, the Village's total payroll was $2,041,175. As of ' September 30, 1994, there were 12 nonvested active employees in the plan. 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 596 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~ ' 49 VILLAGE OF TEQUESTA, FLORIDA ' Notes to Financial Statements September 30, 1994 ' NOTE 8 -FIREFIGHTERS' PENSION TRUST FUND (Continued) ' PLAN DESCRIP'ITON -AND PROVISIONS (Continued) ' If the injury or disease is service connected, the firefighter shall be entitled to the greater of (a) or (b): ' (a) A monthly pension equal to 42 % of his average compensation based upon his final five years of service, or ' (b) An amount equal to the number of years of his credited service multiplied by 3 4b of his average monthly salary based upon his final five years of , service. If the injury or disease is n~,l service connected, the firefighter shall be entitled to the greater ' of (a) or (b): (a) A monthly pension equal to 25 % of his average compensation based upon ' his final five years of service, or (b) An amount equal to the number of years of his credited service multiplied by 3 9b of his average monthly salary based upon his final five years of ' service. If the firefighter dies prior to retirement from the fire department, his beneficiary shall receive ' the following benefit: (a) Line-of-Duty-Death-Benefit is a pension to the spouse (or children) of 509b t of Average Compensation for life. (b) Non-Line-of-Duty-Death, the spouse of a member with ten years of credited , service will receive the actuarial equivalent of the accrued early or normal retirement benefit. ' If the firefighter dies or terminates employment with less than ten years of credited service, he is entitled to a refund of the money contributed. ' "Average final compensation" means one-twelfth of the average salary of the five best years of the last ten years of credited service prior to termination, retirement or death of the firefighter. ' VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1994 NOTE 8 -FIREFIGHTERS' PENSION TRUST FUND (Continued) PLAN DESCRIPTION AND PROVISIONS (Continued) "Credited service" is a firefighter's period of employment as firefighter in the fire department measured in years and parts of years. Firefighters are required to contribute 5 4b of their compensation to the plan. The state makes a contribution from the Fire Insurance Premium Tax. The Village is required to contribute the remaining amount to fund the plan using the aggregate actuarial cost method as approved by the plan's Board of Trustees which consist of five people; two selected by the plan members, two appointed by the Village Council and one selected by the other four trustees. ' SLfMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PLAN ASSET MATTERS Basis of Accounting. The retirement system is reported on the accrual basis of accounting. ' Employee, employer and state contributions are recognized as revenues in the period in which employee services are performed. ' Method Used to Value Assets. The plan assets are reported at market value. L~ FUNDING STATUS AND PROGRESS The amount shown below as the "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and any step-rate benefits, estimated to be payable in the future as a result of employee service to date. This measure is the actuarial present value of credited projected benefits and is intended to: (i) help the Board of Trustees of the Retirement Systems and the Village assess the systems funding status on agoing-concern basis; (ii) assess progress being made in accumulating sufficient assets to pay benefits when due; and (iii) allow for comparisons among public employee retirement plans. The measure is independent of the actuarial funding method used to determine contributions in the systems. Additionally, the pension benefit obligation is being compared with plan assets at cost while the required contribution calculation uses total projected benefits and the actuarial value of plan assets. The pension benefit obligation is thus sr~dependent of the actuarial funding method used to determine contributions to the plan, discussed in Contributions Required and Contributions Made. 51 VII.LAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1994 NOTE 8 -FIREFIGHTERS' PENSION TRUST FUND (Continued) FUNDING STATUS AND PROGRESS (Continued) The pension benefit obligation was determined as part of an actuarial valuation of the plan as of October 1, 1993. Significant actuarial assumptions used in determining the pension benefit obligations include: ° The mortality rates aze based on the 1984 Unisex Pension Table. ° The rate of return on investment of present and future assets was assumed to be 8.0% compounded annually. ° Future benefit payments were computed assuming early retirement occurs acxording to the withdrawal table below: Withdrawal A,gg Rate 20 80 30 64 40 20 50 0 60 0 ° Future contributions and benefit payments were computed assuming a 6.096 annual salary increase until the assumed retirement age. ° Disability benefit payments were computed assuming 75 9b of service and 25 9~b of nonservice. ° Death benefit payments were computed assuming 2096 of service and 8096 of nonservice. ° Valuation of assets is market for equities, bonds, cash and cash equivalents. All valuations are in conformity with Florida Statute 112. 1 1 1 52 ' ' VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1994 ' NOTE 8 -FIREFIGHTERS' PENSION TRUST FUND (Continued) ' The pension benefit obligation as of October 1, 1993 is as follows: Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving them $ 1 Current employees Accumulated employee contributions including allocated investment income 426 Employer-financed vested Employer-financed nonvested 7, 810 ' Total pension benefit obligation $,236 Net assets available for benefits ' (market value) 9.543 Assets in excess of pension benefit obligation 1 7 CONTRIBUTIONS REQUIRED AND CONTRIBUTIONS MADE ' The total r uired contributions are determined usin the A re ate Actuarial Cost Method and eq g gg g consist of the normal cost, the current year's cost for benefits yet to be funded. The employer's contribution is calculated by taking the required contribution less the estimated employee and state contributions. The following contnbutions were made for the year ended September 30, ' 1994 based on an actuarial valuation as of October 1, 1993. i ,~ ~ VILLAGE OF TEQUESTA, FLORIDA , Notes to Financial Statements September 30, 1994 NOTE S -FIREFIGHTERS' PENSION TRUST FUND (Continued) ' Plan Year En ded September 30. 1994 ' Req uired Actua l 9b of % of Covered Covered Contributio n Pavroll Contribution Payroll , Employees $19,945 5.046 $19, 805 5.0 % Employer 45, 377 11.446 46, 950 11.896 State 8,800 2.296 8,801 2.2% ' 74 122 75 55 ' The required contribu tion calculated consisted of $74,12 2 (18.646 of covered payroll) normal cost. ' Significant actuarial assumptions used to compute actuarially determined contribution requirements are the same as those used to compute the pension benefit obligation. TREND INFORMATION Trend information Ives an indication of the ro s made in accumulatin sufficient assets to g P 8~ g pay benefits when due. As the plan was started in fiscal year ending September 30, 1993 and ' actuarial reports are not prepared every year, complete trend information is not yet available. Ten-year trend information may be found on pages 93-95. Three-year trend information follows. , 1 1 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1994 NOTE 8 -FIREFIGHTERS' PENSION TRUST FUND (Continued) TREND INFORMATION (Continued) Fiscal Fiscal Fiscal Year Ended Year Ended Year Ended 1992 1993 1994 Percentage of pension benefit obligation funded by available assets ~ (a) 115.9 (b) Assets in excess of pension benefit obligation as a percentage of annual covered payroll (a) 2.5 (b) Village's contributions to the pension plan as a percentage of annual covered payroll (a) 17.5 11.8 % (a) Plan not in existence. (b) No actuarial report available. Presenting the assets in excess of pension benefit obligation as a percentage of annual covered payroll approximately adjust for the effects of inflation for analysis purposes. N TE 9 - DEFERRED COMPENSATION PLAN The Village offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all Village employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. 55 VILLAGE OF TEQUESTA, FLORIDA ' Notes to Financial Statements September 30, 1994 , NOTE 9 -DEFERRED COMPENSATION PLAN (Continued) All amounts of compensation deferred under the plan, all property and rights purchased with , those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the Village (without being restricted to the provisions of benefits under the plan), subject only to the claims of the Village's general creditors. Participants' rights under the plan are equal to those of general creditors of the Village in an amount equal to the fair market value of the deferred account for each participant. It is the opinion of the Village that it has no liability for losses under the plan, but does have the duty of due care, that would be required of an ordinary prudent investor. The Village believes that is unlikely that it will use the assets to satisfy the claims of general creditors in the future. ' Investments are managed by the plan's trustee under one of six investment options, or a combination thereof. The funds are invested at the discretion of individual plan participants. , NOTE 10 -COMPENSATED ANNUAL LEAVE AND SICK FAY , As of September 30, 1994, the total liability for compensated absences was $299,621. The noncurrent portion of compensated absence liability of the General Fund is recorded in the ' General Long-Term Debt Group. For the fiscal year ended September 30, 1994, the long-term amount was $253,072. The liability recorded by the Enterprise Fund was $46,549. NOTE 11 -RISK MANAGEMENT The Village is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Village continues to purchase commercial insurance to cover the various risks. Retention of , risks is limited to those risks that are uninsurable and deductibles ranging from $250 to $10,000 per occurrence. Major uninsurable risks include damages to infrastructure assets. Since the amount of loss cannot be reasonably estimated and the likelihood of occurrence is not determinable, no provi- sion for losses is reflected in the financial statements. There were no settled claims which ' exceeded insurance coverage during the past three fiscal years. 56 , VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1994 NOTE 12 -LEASE COMIVIITMENTS During the fiscal year, the Village had the following capital lease agreements: General Fund cerise Fund Fire Truck Office equipment Annual Payment: $56,658 Monthly payment: $178 10 year term 36 month term Expires October, 2003 Expires June, 1994 Principal amount: $473,000 Purchase option - $825 Capitalized cost -$466,140 (General Fixed Asset Account Group). Computer system Monthly payment: $692 60 month term Expires October, 1996 Capitalized costs and accumulated amortization of the enterprise fund leases are as follows: Cost $87,037 Accumulated amortization 43.615 422 Amortization expense of $17,171 is included in depreciation expense. There are no contingent rents in the above leases. The following is a schedule of the future minimum lease payments under these capital lease arrangements and the present value of the net minimum lease payments at September 30, 1994: 57 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1994 NOTE 12 -LEASE COMMITMENTS (Continued) Fiscal Year General Ending Long-Term Enterprise September 30~ Debt Fund 1995 $ 56,658 S 8,299 1996 56,658 8,299 1997 56,658 803 1998 56,658 1999 56,658 Thereafter 283.290 Total minimum lease payments 566,580 17,401 Less: amount representing interest 4 7 1 4 1 Present value of future minimum lease payments 2 14 15 92 NOTE 13 -LONGTERM AGREEMENT TO PURCHASE WATER On July 15, 1976, the Village entered into an agreement with Tri-Southern Utilities Company, Inc. (the agreement subsequently assumed by the Town of Jupiter) to purchase water for the Village's water system for a period of 30 years. Rates for water service are based on wholesale rates. The Village is billed monthly based upon a 1,500,000 gallons per day contracted minimum. 58 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 ' VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements ' September 30, 1994 ' NOTE 14 -CONTRACTED SERVICES -FIRE PROTECTION/EMERGENCY MEDICAL SERVICE ' Effective October 1, 1993, the Village entered into an agreement with North County Ambulance for North County Ambulance to provide emergency medical service for a fee. The Village also ' entered into an interlocal agreement with Jupiter Inlet colony for the Village to provide fire protection/emergency medical services for a fee. For the year ended September 30, 1994, fire protection paid to North County was $166,045 and fire protection fees received from Jupiter ' Inlet Colony was $151,190. As of January 1, 1995, the Village has established an Emergency Medical Service (EMS) program within the Fire Rescue Department. The Village has employed three additional paramedic personnel to complete the required staffing needs. North County Ambulance continues to provide transportation but not longer provides medical services. ' NOTE 15 - CONTRACTID 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 696 franchise fee for each residential customer. A 396 franchise fee will be charged effective October 1, 1993 and the 696 will be 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 (CPn. 1 59 VILLAGE OF TEQUFSTA, FLORIDA Notes to Financial Statements September 30, 1994 NOTE 16 -LONGTERM DEBT General Long-Term Debt Changes in general long-term debt of the Village for the year ended September 30, 1994 are summarized as follows: Capital Improvement Compensated Lease Revenue Absences bl0 ig~,tions Bonds Total General long-term debt at October 1, 1993 $279,472 $478,470 $ 615,000 $1,372,942 Additions: Issuance of new debt 1,365,000 1,365,000 Deletions: Decrease in accrual for compensated absences (26,400) (26,400) Repayments of debt (57,656) (615.000) 67f 2,656) General long-term debt at September 30, 1994 2 72 2 14 1 5 2 revenue Bonds - 1979 This debt consists of Improvement Revenue Bonds Series 1979, dated October 1, 1979, in the amount of $910,000 with interest rates ranging from 8.3096 to 8.5096. Resolution 10-78/79 provided for the creation of a special fund known as the Improvement Bond Revenue Fund (Revenue Fund) and the Improvement Bond Sinking Fund (Debt Service Fund). Pledged funds to be deposited in the Revenue Fund are the guaranteed entitlement portion of state revenue sharing trust funds, public service utilities taxes, franchise fees and occupational license taxes. These bonds were refunded by the Improvement Revenue Refunding Bonds Series 1994, and called on August 1, 1994. 60 1 1 1 1 1 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements ' September 30, 1994 ' NOTE 16 - LONGTERM D BT (Continued) ' Revenue Bonds - 1994 This debt consists of Improvement Revenue Refunding Bonds Series 1994 in the amount of ' $1, 365,000 with an interest rate of 6.15 9b , 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, 1994, $1,365,000 of this issue ' were outstanding. Any remaining revenues after principal and interest may be used for any lawful purpose. - Annual requirements to amortize this debt are as follows: Coupon ' October 1. Rate 'n i n r Payments 1995 6.159b $ 55,000 $ 85,813 $ 140,813 ' 1996 6.15 ~ 60,000 80,565 140,565 1997 6.15 % 65,000 76, 875 141, 875 ' 1998 1999 6.15 % 6.15 % 70,000 75,000 72,878 68,573 142, 878 143,573 Thereafter 1.040,000 382,839 1,422.839 ' Totals 1 6 7 7 4 2154 Wiuer Fund Water Refunding Revenue Bonds, Series 1985 were issued pursuant to Resolution 2-84/85 enacted by the Village Council on October 23, 1984, for a total principal amount of $1,525,000. Resolution 2-84/85 provides for the disposition of all revenues derived from the operation of the water system. Revenues are first to be used for payment of all current operating expenses. Revenues are next to be used for the required payments for principal and interest on, and reserve for, the outstanding water refunding revenue bonds. 1 ' 61 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1994 , NOTE 16 -LONGTERM DEBT (Continued) ' Revenues are next to be used to maintain the renewal, replacement and improvement of the ' water system. Such payments to the renewal and replacement fund are made monthly equal to one-twelfth of the estimated annual cost of extensions, additions to, enlargements and replacement of capital assets of the system and emergency repairs thereto, such cost to be ' established by recommendation of the consulting engineer. Finally, any revenues remaining may be used for any lawful purpose. The Resolution requires the establishment of the following accounts: ' Account Puraose , Revenue Account To collect the entire gross revenues derived from the system, except investment earnings. , Operation and To pay fully accrued operating expenses. ' Maintenance Account Sinking Account To accumulate sufficient funds to meet annual debt service ' requirements through transfers from the Revenue Account. Bond Amortization Established within the Sinking Account to meet principal , Account payment on the debt. Reserve Account To accumulate funds for payment of principal and interest only if funds in the Sinking Account are insufficient. Renewal and Replacement To accumulate funds for the purpose of funding the cost of ' Account extensions, additions to, enlargements and replacement of capital assets of the system and emergency repairs thereto. 1 ' VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements ' ~ September 30, 1994 ' NOTE 16 -LONGTERM DEBT (Continued) Water Fund (Continued} The annual requirements to amortize the debt are as follows: Fiscal Year Ending September 30 Prin i Interest Total 1995 $ 140,000 $ 24,702 $ 164,702 1996 300,000 30,593 330,593 ' 1997 120.000 5.340 12 4 1 s 660.000 S 60.635 S 620.635 The Village is obligated by the securities contract to purchase an aggregate of $980,000 par amount of U.S. Treasury Bonds due February 15, 2007, bearing interest at 7-5/8%, at an aggregate purchase price of $928,324. Purchase must be made semi-annually on April 1 and October 1 from April 1, 1985 through October 1, 1993, at semi-annual prices increasing from approximately $33,000 in 1985 to approximately $71,000 in 1993. Neither the U.S. Treasury Bonds nor their income is pledged for payment of the refunding bonds. However, the purchase prices of the Treasury Bonds are added to gross debt service and the income from the Treasury Bonds is subtracted from gross debt service to compute bond service requirements. All the required Annual Bond Amortization Account payments to the Trustee of the 85 Series Bonds have been made as of September 30, 1994, Debt issue expense and bond discount on the Water Refunding Revenue Bonds, Series 1985, are being amortized over the life of the bonds. 63 VILLAGE OF TEQUESTA, FLORIDA ' Notes to Financial Statements September 30, 1994 , N 1 ti d B C , - on nue ) ( Total Long-Term Debt , The annual requirements to amortize all outstanding debt including interest payments of $1,393,937 as of September 30, 1994 are as follows: ' Fiscal Capital Year Ending Compensated Lease Water Improvement ' ~ev~mber 30 Absences Obligations Revenue Revenue Total 1995 $ $ 64,957 $ 330,142 $ 140,813 $ 535,912 1996 64,957 330,593 140,565 536,115 1997 57,461 125,340 141,875 324,676 1998 56,658 142,878 199,536 ' 1999 56,658 143,573 200,231 Thereafter 283 , 290 1, 422, 839 1, 706,129 Various 253.072 __~~ ' 2 2 9 1 $$ 7~ 2 1 2 4 7 671 ' Annual maturities of lon -term com nsated absences cannot g Pe be reasonabl determined. Y NOTE l7 - 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, 1994, $3,770,000 of bonds outstanding are considered defeased. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 VILLAGE OF TEQUFSTA, FLORIDA Notes to Financial Statements September 30, 1994 NOTE 18 - RECEIVABLES AND PAYABLES Individual fund interfund receivables and payables at September 30, 1994 are as follows: Interfund Interfund Fund Receivables Payables General Fund $ 41,582 $ 4,415 Special Revenue Fund Capital Improvement Fund 81,810 Expendable Trust Fund 750 Pension Trust Fund 3,665 Enterprise Fund 12,392 127 127 TE 19 - INT'ERF[JND ADMINISTRATIVE FEE During the year ended September 30, 1994, the Enterprise Fund remitted $132,175 to the General Fund for administrative management fees. This amount is reflected as intra- governmental services revenue in the General Fund and as contractual services operating expenses in the Enterprise Fund. 65 VILLAGE OF TEQUFSTA, FLORIDA Notes to Financial Statements September 30, 1994 ' NOTE 20 -CONTRIBUTED CAPITAL -ENTERPRISE FUND ' The changes in contributed capital consists of the following: , Capital Developer Improvement ' Contributions Charges Total Contributed capital ' at October 1, 1993 $1,059,387 $1,995,748 $3,055,135 Plus: contributions 23.402 212.340 235.742 Contributed capital at September 30, 1994 2~7 ~ $2.2~ 2 77 ' 1~TQTE 21 -ADVANCE REFUNDING OF DEBT ' On June 24, 1994, the Village issued $1,365,000 of Improvement Revenue Refunding Bonds, ' Series 1994 to advance refund the $580,000 outstanding Improvement Revenue Bonds, Series 1979. Proceeds of the Bond in the amount of $430,434 were used by the Village, together with $183,206 of money held in the accounts established in connection with the refunded bonds, to ' repay the refunded bonds on August 1, 1994. The remaining proceeds of $934,566 will be used to pay costs of issuance and costs of capital improvements, specifically Country Club Drive, Tequesta Park and Constitution Park. ' As a result of the advance refunding, the Village increased its aggregate debt service payments by approximately $2,500 over the next fifteen years and obtained an economic gain (difference ' between present values of the old and new debt service payments) of approximately $25,300. Although the refunding resulted in an increase in cash flows, the refunding enabled the Village to eliminate pledges on the state revenue sharing trust funds and public service utilities taxes. ' 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 SUPPLEMENTAL IlVFORMATION 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Revenues -Budget and Actual For the Fiscal Year Ended September 30, 1994 Variance - Favorable Budget Actual nfavor~lel Taxes Ad valorem taxes Current ad valorem taxes $1,942,095 $1,951,011 $ 8,916 Delinquent ad valorem taxes 2.500 2,316 (184) Total ad valorem 1.944.95 1.953.327 / 7 2 Public services taxes Electric 77,302 ~ 77,302 Telephone 21,683 ~ 21,683 Gas 2,997 ~ 2,997 Water 37.141 ~ 7 141 Total public service taxes 1 9 12 ~ 139.123 Local option gas tax 14 147.706 7,706 Total taxes 2.084,595 2.240,156 155.561 Licenses and permits B ildi i u ng perm ts 85,000 112,096 27,096 Other licenses and perrruts 10.000 13.662 3.662 Total licenses and permits 95,000 125.758 30.758 (Continued) 67 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Revenues -Budget and Actual For the Fiscal Year Ended September 30, 1994 (Continued) Budget Actual Intergovernmental Ci arette ta $ 15 000 $ 13 85'7 g x , , State revenue sharing 43,077 ~ Alcoholic beverage licenses 5,000 7,213 ~ One-half cent sales tax 240,000 247,443 ~ 911 maintenance reimbursement 3,500 3,773 ~ Countywide registrations 22,000 21,390 ~ Other 2,400 7131 Recycling reimbursables Total intergovernmental 2 7 7 4 Charges for services ~ Zoning fees 9,250 5,530 Map sales 200 404 ~ Certification, copying, record search 2,000 2,017 Building inspection 5,000 10,918 f Fire rescue service 151,190 151,190 ~! Fire inspection/plan fees 11,400 12,910 Municipal police academy 2,000 2,875--_, Tennis lights 330 333 Extra duty -contracted services 3.000 3.514 ~--" Total charges for services 184.370 189.691 Fines and forfeits Court fines 32,000 47,515' Parking tickets 1,000 1, 370' Code enforcement _~QQ Total fines and forfeits 33,500 48.885 68 1 1 Variance - Favorable ' (Unfavorable? $ (1~~143) 43,077 2,213 ' 7,443 273 (610) ' (1,687) 4 66 t 3 720 ' (, ) 204 ' 17 5,918 1,510 ' 875 3 ' 514 ~~ ' 15,515 370 (500) 1 5 (Continued) 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Revenues -Budget and Actual For the Fiscal Year Ended September 30, 1994 (Continued) Variance - Favorable Bu et Actual (Unfavorable) Interest Tax collector $ 4,000 $ 3,000 ~ $ (1,000) Investments 40.000 54,293/ 14.293 Total interest 44.000 57,293 13.293 Impact fees _~QQ ~ Miscellaneous Contributions for park land 1,840 1,840 Contributions for planned events 270 270 Police department 25 25 Other 32,250 12.065 (20,1851 Total miscellaneous 32.250 14.200 1~ 8.050) Intragovernmental services Administrative management -water fund 1 2 17 132,175 ... Total intragovernmental services 132.175 1 17 ~ Total revenues 2 9 7 14 24 / 2 2 134 69 1 VII,LAGE OF TEQUESTA, FLORIDA ' General Fund Schedule of Departmental Expenditures -Budget and Actual For the Fiscal Year Ended September 30, 1994 ' Variance - ' Favorable Budget Actual (Unfavorable) General government t Legislative Travel and per diem $ 13,400 $ 13,122 $ 278 ' Other charges 1,535 1,123 412 Books, publications and dues 4 7 4,644 96 Total legislative 19,675 1 9 786 Executive ' Salaries 125,545 125,541 4 F.I. C. A. 10,500 10,495 5 ' Retirement 26,225 26,224 ~~' 1 `~ `~ Life and health insurance 25,250 25,249 1 ~~~ ' Worker's compensation insurance 400 ___,__,_,_373.,_, ,~~ ._~__v 27 Professional services 13,585 10,428 3,157 Contractual services 7,570 7,568 2 ' Deferred compensation plan 3,455 3,399 56 Travel and per diem 6,150 6,137 13 Office machines maintenance 400 388 , 12 , Other charges 2,995 1,681 '~ 1,314 Office supplies 1,275 889 ~ 386 Rentals and leases 1,435 1,430 ~'? 5 ' Books, publications, dues 1.200 1,107 _~ Total executive 225.985 220.909 5.076 , (Continued) , 70 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 VII,LAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures -Budget and Actual For the Fiscal Year Ended September 30, 1994 (Continued) Budget Actual General government (continued) Financial and administrative Variance - Favorable (LTnfavorablel Salaries $109,910 $109,908 $ 2 F.I.C.A. 8,410 8,350 ~ 60 Retirement 19,405 19,295 ,!~` 110 Life and health insurance 13,595 13,590 ~ 5 Worker's compensation insurance 380 30b `' i ~ 74 Professional services 2,150 _ ~~ 2,146 4 Accounting and auditing 19,600 19,600 Travel and per diem 1, 200 1,117 83 Other charges 2,480 2,3b2 ~-- 118 Office supplies 3,700 3,652 ~'~ 48 Books, publications, dues 450 400 ,~ 50 Office machines maintenance 5.100 5.095 ~ ~ 5 Total financial and administrative 18b.380 185.821 559 Legal counsel Legal services 91.500 1 4 Total legal counsel 91.500 91,485 1~ Planning and zoning Professional services 31,335 31,335 Other charges 4.b75 4,220 455 Total planning and zoning 36.014 _~~~ ~~ (Continued) 71 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures -Budget and Actual For the Fiscal Year Ended September 30, 1994 (Continued) General government (continued) Other general government Life and health insurance Compensated absences Professional services Contractual services Travel and per diem Communication services Transportation/postage Utility services Fire hydrant rental fees Rentals and leases Insurance/claims and judgments Village Hall maintenance Printing and binding Promotional activities Other charges Office supplies Books, publications, dues Total other general government Total general government Budget $ 8,945 15,000 13,880 8,400 400 4,275 5,700 6,425 13,900 7,332 20,250 4,125 200 16,700 5,350 4,075 450 135,407 4 7 Actual Variance - Favorable (iJnfavorable) 8803 ~.r +_ ~ S $ 142 __ 9,024 5,9'76 13,615 265 8,400 155 245 4,275 5,442 258 6,410 15 13,900 7,280 52 19,652 598 4,114 11 170 30 11,642 ,~~`~ 5,058 5,335 !,' 1S 4,052 "_~~ ~~ 23 126 324 122.395 13,012 675.054 ~~ (Continued) 72 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures -Budget and Actual For the Fiscal Year Ended September 30, 1994 (Continued) Public safety Police department Salaries Overtime F.I.C.A. Retirement Life and health insurance Worker's compensation insurance Travel and per diem Communication services Rentals and leases Insurance Repairs and maintenance Printing and binding Other charges Personnel training Office supplies Operating supplies Books, publications, dues Variance - Favorable Budget Actual (LTnfavorablel $ 643,725 $ 643,353 $ 372 57,375 57,335 ~ ~ 40 57,025 . 56,881 ~' 144 180,750 180,427 ,~ ` 323 100,640 100,274 ~~? 1 366 46,300 46,221 ~ 79 1,745 _ ____. 1,274 471 6,425 6,335 90 150 150 28,000 27,933 67 21,755 20,978 777 850 591 259 12,000 11,647 ~~ 353 6,934 6, 391 ~ 543 2,950 2,457 ', ~ 493 33,186 31,922 ~ ~ 1,264 1,575 1,011 Total police department 1.201.385 1.195.180 (Continued) 73 VILLAGE OF TEQUFSTA, FLORIDA General Fund Schedule of Departmental Expenditures -Budget and Actual For the Fiscal Year Ended September 30, 1994 (Continued) Actual Public safety (continued) Protective inspections Salaries F.LC.A. Retirement Life and health insurance Worker's compensation insurance Contractor services Travel and per diem Communication services Insurance Repairs and maintenance Printing and binding Other charges Office supplies Operating supplies Books, publications, dues Total protective inspections $ 115,225 9,070 20,509 16,525 2,450 1,176 4,200 2,400 870 2,300 400 1,500 1,280 1,500 600 181,005 $ 115,782 9,050 20,290 13,637 ~~' ~ ~~ 2,105 i 1,127 3,764 2,191 792 2,094 288 1,235 ,~ 1,017 ~,~ 1,025 "~, \ ' 451 74 Emergency and disaster relief Civil preparedness Disaster relief Total emergency and disaster relief 1,250 3.000 4.250 74 I ,180 Variance - ' Favorable (Unfavorable) ' $ 443 , 20 219 2,888 345 49 ' 436 209 78 ' 206 112 265 263 475 ' 149 17 70 ' 3.000 3.070 (Continued) 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 VII.LAGE OF TEQUFSTA, FLORIDA General Fund Schedule of Departmental Expenditures -Budget and Actual For the Fiscal Year Ended September 30, 1994 (Continued) Variance - Favorable Budget Actual (Unfavorable) Fire and rescue services Salaries $ 416,995 $ 416,245 ~ $ 750 ° F.I.C.A. 32,830 30,714 ~ ~ 2,116 Retirement 49,265 47,685 ~~~ 1,580 Life and health insurance 89,675 82,146 '~ 7,529 EMS contractual services 166,050 ._ 166,045 5 Volunteer fire and rescue 10,950 10,840 110 Travel and per diem 2, 750 2, 719 31 Communication services 3,750 3,478 272 Utility services 1,700 1,596 104 Repairs and maintenance 16,800 14,326 2,474 Insurance 14,970 14,464 506 Printing 700 688 ' y 12 V Other charges 4,375 4,348 ' 27 ~ Office supplies 1,550 1,537 ~ 13 Operating supplies 25,635 22,500 ~,~C ~ 3,135 Books, publications, dues 7.830 7,663 r 1 7 Total fire and rescue services 845, 825 $26.994 1 1 Total public safety ~.~,465 2.198,202 34.263 (Continued) 75 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures -Budget and Actual For the Fiscal Year Ended September 30, 1994 (Continued) Actual Transportation Road and street facilities Salaries F.LC.A. Retirement Life and health insurance Worker's compensation insurance Engineering services Other contractual services Travel and per diem Communication services Rentals and leases Utility services Insurance Repairs and maintenance Other charges Operating supplies Road materials and supplies Books, publications, dues $ 133,330 10,390 23,765 26,915 5,200 70,000 51,000 2,700 1,525 1,450 45,600 11, 325 38,700 700 5,300 4,425 ~~ 1 Variance - ' Favorable (Unfavorable) , $ 131,613 ~ $ 1,717 10,005 f`'1 385 23,102 ~ 663 26,911 ~,~ ~ 4 137 ____..___.._5,063 _n~ ___~_ 60,963 9,037 50,052 948 2,442 258 1,502 23 1,134 316 43,547 2,053 11,322 3 37,686 ~ 1,014 440 „~' 260 4,761 4~~ 539 4,392 r~~ , 33 ~$4 220 415.015 17 1 Total transportation 432,625 76 I 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 General Fund Schedule of Departmental Expenditures -Budget and Actual For the Fiscal Year Ended September 30, 1994 (Continued) Variance - Favorable Bu-~- A,ctu,~ (Llnfavorablel Human services Health -mosquito control Salaries Other charges Operating supplies Personnel training Total human services $ 800 $ 95 $ 705 250 ~ 250 350 269 w 81 -~ ?s~ ~ ~ 2.000 624 1 7 Culture/Recreation Parks and recreation Salaries F.I.C.A. Retirement Life and health insurance Worker's compensation insurance Contractual services Travel and per diem Communication services Utility services Insurance Repairs and maintenance Other charges Office supplies 62,220 61,119 1,101 4,500 4,283 ~ 217 10,730 9,597 ~°` ~ 1,133 4,010 3,705 G'6 305 1,795 1,490 ~ 305 4,200 8b4 3,336 1,500 1,058 442 400 325 75 9,200 9,046 154 1,400 1,096 304 21,300 20,175 1,125 500 347 153 200 69 131 (Continued) 77 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures -Budget and Actual For the Fiscal Year Ended September 30, 1994 (Continued) Culture/Recreation (Continued) Parks and recreation (continued) Operating supplies Books, publications, dues Aid to community organizations Aid to government organizations Total culture recreation Capital Outlay General government -executive Police Protective inspections Fire rescue Transportation Parks and recreation Debt Service Principal retirement Interest Total debt service Total expenditures $ 1,300 300 7,000 2.725 .133.280 3,165 68,753 3,225 440,290 22,200 6.780 544.413 74 78 ~, 1 Variance - ' Favorable (Unfavorable) ' $ 914 ~'~ $ 386 265 ~a 35 7,000 `~-~ ' 1,350 ~ 1 7 2 7 10.577 ' 3,163 68,624 2,719 ~ 392,530 ~ 4, 815 ~ 629 ~ 4 4 54,417 ~ 2.241 ~ 56.658 4 7 ' 2 129 506 ' 47,760 17,385 6.151 ' 71 (54,417) (2.2411 1 VILLAGE OF TEQUESTA, FLORIDA Special Revenue Fund Schedule of Revenues -Budget and Actual For the Fiscal Year Ended September 30, 1994 Budget Actual Taxes Franchise fees $294,500 $285,786 Utility taxes 495.600 307.778 Total taxes 790.100 .5 3, S„ f~4 Licenses and permits Professional and occupational licenses 72.000 72.242 Total licenses and permits 72.000 72.242 Intergovernmental State revenue sharing 129,000 86.140 Total intergovernmental 129.000 86.140 Total revenues 991 1 7 1 4 79 1 Variance ' Favorable ~Jnfavorable~ ' $ (8,714) , 1 7 2 196 5 , 242 , 242 42 ' 4~ 2.860) 2914 ' VILLAGE OF TEQUESTA, FLORIDA Capital Projects Funds - Combining Balance Sheet September 30, 1994 Capital Bond Improvement Construction Fund Fund Total Assets Cash and cash equivalents $ 74,000 $ 76,107 $ 150,107 Investments 143,60'1 784,418 928,020 Due from other funds 81 ~ 810 1 10 Total assets 412 $$ 8~ 1 1 937 Liabilities, equity and other credits Accounts payable $ 43,440 $ 58,807 $ 102,247 Retainage payable 3.171 3.171 Total liabilities 4 44 61,978 1 41 Equity and other credits Reserved for: Capital improvements , ~ ___ 780,998 780,998 Encumbrances :,;,46,201 -- 17,549 63,750 Unreserved --- Designated for: 4 44 2 Road projects 52,34 ,3 5 Undesignated X57,427 157,427 Total equity and other credits .255.972 7 47 1,054.519 Total liabilities, equity and other credits 412 1 1 9 7 80 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 VILLAGE OF TEQUESTA, FLORIDA Combining Statement of Revenues, Expenditures and Changes in Fund Balance For the Fiscal Year Ended September 30, 1994 Capital Bond Improvement Construction Fund Fund Total Revenues Interest ~ 6.201 $ 9.41 g $ 15.619 Total revenues x,201 41 15.619 Expenditures Capital outlay 332,296 107,637 439,933 Fiscal charges 37, 800 37.800 Total expenditures 332.296 145 4 7 477 73 Excess of revenues over (under) expenditures (326.095) (136,019) X462.114) Other financing sources (uses) Debt proceeds 934,566 934,566 Debt issuance costs Transfers in 289.809 289.809 Total other financing sources 289.809 934.566 4 7 Excess of revenues and other financing sources over (under) expenditures and other financing uses (36,286) 798,547 762,261 Fund balances at beginning of year 292.258 292,258 Fund balances at end of year $$ 2~ 7 7 4 1 81 VILLAGE OF TEQUESTA Capital Projects Fund Combining Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual For the Fiscal Year Ended September 30, 1994 Revenues Interest Total revenues Expenditures Capital outlay Fiscal charges 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 at beginning of year Fund balances at end of year Capital Improvement Fund Budget Actual Variance ~ 2.500 2,500 $ 6.2Q1 6.201 701 3,701 608,385 608.385 381.810 381.SI0 X224 82 332,296 332"296 (326.0951 289.809 289.809 (36,286) 292.2,8 2 5 972 276,089 276.089 27 2 1 ~~~ 1 7789 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Bond Construction Fund Budget Actual Variance ~~ 9 41 9 41 41 41 905,000 107,637 797,363 37,800 (37.800) 905.000 145.437 759.563 (905,000) 1 1 7 9 1 905,000 934,566 29,566 905=000 ~ ?~ ~~ 798,547 7 47 798 547 Totals Budget Actual Variance $ 2,500 1 1 $ 13.119 2.500 1 1 x,119 1,513,385 439,933 1,073,452 37~ X37, 800) 1 1 477 7 1.035.652 X1,510.885) L62,114) 1.048.771 905,000 934,566 29,566 381.810 2$9,809 X92.001) 1 2 1 1 2 4 7 X62,435) $$ (2~ 762,261 $$ 9 2 2 1 054 19 83 1 THIS PAGE INTENTIONALLY LEFT BLANK 1 1 PROPRIETARY FUND (ENTERPRISE FUND) 1 1 1 VILLAGE OF TEQUESTA, FLORIDA Ester~nse Fund Schedule of Operating Expenses -Budget and Actual For the Fiscal Year Ended September 30, 1994 Variance - Favorable Budget Actual (Unfavorable) Purchased services Purchased water $ 682,875 $669,033 $ 13,842 Refuse and recycling service 339.280 246.093 1 7 Total purchased services 1.022,155 915.126 1 9 Personal services Salaries 365,000 363,687 1,313 Overtime 10,200 10,073 127 F.I.C.A. 28,605 28,425 180 Retirement 66,090 65,641 449 Life and health insurance 71,375 70,872 503 Worker's compensation insurance 7,670 6,541 1,129 Employee recognition program 1,000 909 91 Employee assistance programs 1.600 586 14 Total personal services 551,540 546.734 4,~ Contractual services Insurance Personnel services Communication services Rentals and leases Computer program services Legal Engineering Accounting and auditing Other charges Licenses and fees Administrative management Personnel training and travel Total contractual services Supplies Office supplies Chemic~is Other operating. supplies Books, publications and dues Total supplies Heat, light and power Repairs and maintenance Depreciation Total operating expenses 34,520 6'660 25'000 24;100 17,600 6,135 1 6.600 77 7,150 32,500 x,400 56.380 100.125 165.625 2 9 33,484 1,260 3;438 3,835 7,807 31,097 24,066 15,488 5,531 132,477 268.973 940 25;955 1.125 45.957 95.717 1 7 1 355.803 2 7 1 1 1,03~~6 ' 3,222 1,165 ' 3,468 (6, ~~ 2,112 ' 1.113 17 3'393 275 10.423 4,408 3 914 arisa.o~i 1 1 84 I 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 VILLAGE OF TEQUESTA, FLORIDA Enterprise Fund Comparative Summary of Operations For the Fiscal Years Ended September 30, 1994 and 1993 1994 1993 Operating revenues Water system $2,511,918 $2,388,504 Refuse and recycling 252.617 300.590 Charges for services 7 53 2.689,094 Operating expenses Purchased services 915,126 973,116 Personal services 546,734 524,651 Contractual services 268,973 224,785 Supplies 45,957 44,380 Heat, light and power 95,717 94,643 Repairs and maintenance 128,711 129,814 Depreciation 35,x..803 365.668 Total operating expenses 2 7 21 2.357.057 Operating income 407 14 332.037 Nonoperating revenues (expenses) Interest income 178,189 178,110 Interest expense and fiscal charges (66,578) (71,091) Community aid donation (10.000) Total nonoperating revenues 1 11 107.019 Income before operating transfer 509,125 439,056 Operating transfers (out) f316.3.~ X260.000) Net income 1 774 17 6 85 VILLAGE OF TEQUFSTA, FLORIDA Enterprise Fund Schedule of Restricted Accounts Under Revenue Bond Ordinance For the Fiscal Year Ended September 30, 1994 Sinking Account Balance, October 1, 1994 Cash and investments $ 5,052 Unamortized discount on investments Total 5.052 Increases Transfers from restricted accounts 41,660 Transfers from unrestricted accounts 292,654 Investment earnings 1 2 Total '7 q.4 Decreases Transfers to restricted accounts Capital outlay Payments for debt service 1 4 Total Balance, September 30, 1994 Cash and investments 11,093 Unamortized discount on investments Total 11 86 I 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Bond Renewal and Amortization Reserve Replacement Account Account Account $1,349,372 $272,022 $ 48,342 (44.722) 1,304.650 272.022 4 42 13,490 41,600 89.438 1 4 4 89,438 23,924 41.600 41,660 73,657 41.660 73.657 1,398,370 295,946 16,285 X5,942) 2 4 295 946 6 2 87 VILLAGE OF TE UESTA FLORIDA Q Amortization Schedule $1,525,000 Water Refunding Revenue Bonds -Series 1985 ' September 30, 1994 The debt was in curred on January 1, 1985, through the issuance of $1,525,000 water refunding revenue bonds. The proceeds were used to refund a portion of the outstanding Series 1978 water refunding revenue bonds. The bonds are secured by the net revenues of the Water Fund. On September 30, 1994, the outstanding bonds totaled $560,000; the payment schedule follows: ' Due Date Prin i Interest Total ' 1995 April 1 $ 140,000 $ 24,702 $ 164,702 ' 1995 October 1 150 000 1 7 8,5 8 168,578 1996 April 1 150,000 12,015 162,015 ' 1996 October 1 120.000 5,340 125.340 ' Totals $$ S~ ~.~ $$ 6 1 1 1 1 88 ' VILLAGE OF TEQUESTA, FLORIDA Combining Balance Sheet -Fiduciary Fund Types September 30, 1994 Assets Cash and cash equivalents Investments Due from other funds Total assets Liabilities and Fund Balances Liabilities Deferred compensation payable Total liabilities Fund Balances Reserved for: Law enforcement Employees' retirement plan Total fund balances Total liabilities and fund balances Expendable Pension Trust Trust Fund Fund $ 1,766 750 2 i 2,516 .516 51 83,601 3.665 72 8 ,266 ~~ .s~SOC ss~.z~ Agency Fund Totals $ $ 1,766 237,364 320,965 44 2 7 364 27 146 27 64 27 237,364 237.364 2,Slb 72 72 2 7 3 27 145 89 1 1 1 1 1 1 1 1 1 1 VILLAGE OF TEQUFSTA, FLORIDA Statement of Changes in Assets and Liabilities - Agency Fund For the Fiscal Year Ended September 30, 1994 Deferred Balance Balance Compensation October 1, September 30, Fund 1993 Additions Deductions 1994 Assets Investments 1 2 1 57 447 2 27 2 7 Liabilities Deferred compensation payable 1 1 57 447 2 79 ~ 73 4 90 1 1 1 1 1 1 1 1 1 1 1 VILLAGE OF TEQUESTA, FLORIDA Schedule of General Fixed Assets by Source September 30, 1994 General fixed assets Land $ 234,728 Buildings 294,333 Improvements other than buildings 258,778 Equipment 147 2 Total general fixed assets 2 26 7 Investment in general fixed assets General Fund revenue $2.263.671 Total investment in general fixed assets 2 2 71 91 VILLAGE OF TEQUESTA, FLORIDA Schedule of General Fixed Assets By Function September 30, 1994 Buildings and Total Imo, ~ Improvements i m n General government $ 564,435 $185,000 $256,574 $ 122,861 Public safety 1,251,227 90,511 1,160,716 Transportation 143,460 7,713 135,747 Human services 6,020 6,020 Culture/recreation 183.885 4 7 83.669 50.488 Total general fixed assets 2,149,027 234,728 438,467 1,475,832 Allocated to functions Prior year data which cannot be allocated 114 114 Total general fixed assets $2.263. X71 4 7 1 1 1 47 2 92 1 1 1 1 1 1 1 1 1 1 1 VILLAGE OF TEQUESTA, FLORIDA Schedule of Changes in General Fixed Assets By Function For the Year Ended September 30, 1994 General Fixed Assets October 1, 1993 i ' n Deletions General government $ 563,002 $ 12,444 $21,485 Public safety 876,852 459,605 74,756 Transportation 142,245 1,215 Human services 6,024 Culture/recreation 183.255 630 1,771,374 473,894 96,241 Prior to allocation by function 114 1 O1 7 94 9 41 93 General Inter- Fixed Assets Departmental September 30, Transfers ~4 $ 10,474 $ 564,435 (10,474) 1,251,227 143,460 6,020 183.885 2,149,027 114,644 ~~ 2 2 3 671 VILLAGE OF TEQUESTA, FLORIDA Required Supplemental Information Firefighters' Retirement System 1 The following page is an analysis of funding progress for the Firefighters' Retirement System ' (FRS) of the Village of Tequesta, Florida. Analysis of the dollar amounts of net assets available for benefits, pension benefit obligation, and ' assets in excess of pension benefit obligation in isolation can be misleading. Expressing the net assets available for benefits as a percentage of the pension benefit obligation provides one indication of the system's funding status on agoing-concern basis. Analysis of this percentage ' over time indicates whether the system is becoming financially stronger or weaker. Generally, the greater this percentage, the stronger the retirement system. Trends in assets in excess of pension benefit obligation and annual covered payroll aze both affected by inflation. Expressing the assets ' in excess of pension benefit obligation as a percentage of annual covered payroll approximately adjusts for the effects of inflation and aids analysis of the system's progress made in accumulating sufficient assets to pay benefits when due. Generally, the larger this percentage, the stronger the ' retirement system. Also provided for the FRS is a listing of revenues by source and expenses by type for the ten t years (where information is available). n 1 94 ' 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 VILLAGE OF TEQUESTA, FLORIDA Firefighters' Retirement System Analysis of Funding Progress (6) Assets in Excess of Pension (1) (2) (3) (4) (5) Benefit Obligation Net Assets in as a Assets(a) Excess of Percentage Available Pension Percentages Pension Annual of Covered Fiscal for Benefit Funded Benefit Covered Payroll Benefits li i ~LL,~ Ob 'gation ~yroll L4,1/(51 ro) 1993 $ 9,543 $ 8,236 115.9 $ 1,307 $ 52,129 2.5°~ 1994 81,948 (c) (c) (c) 398,905 (c) (a) At market (b) Since the Pension Trust Fund did not begin until July 1, 1993, information on the pension benefit obligation is not available for fiscal years before 1993. (c) October 1, 1993 is the latest available actuarial report. 95 VILLAGE OF TEQUESTA, FLORIDA Firefighters' Retirement System Revenues by Source and Expenses by Type Revenu es by Source Employer Contributions as a Employee Employer State Percentage Contri- Contri- Contri- Transfers of Covered Fiscal Year u ' n butions butions I i Total Pa ry oll 1993 $ 426 $ 9,117 $ $ $ 9,543 17.5 °b 1994 19,805 46,950 8,801 7,565 83,121 11.8 Expenses by Type Administrative Fiscal Year Benefits Expenses Refunds Total 1993 ~ $ $ $ $ 1994 4,918 480 5,398 Contributions were made in accordance with actuarially determined contribution requirements. 96 1 1 1 1 VILLAGE OF TEQUESTA, FLORIDA Schedule of Insurance September 30, 1994 Employees Statutory Life Group Life Insurance Group Hospitalization Comprehensive Automobile Liability Public Employees Blanket Bond Public Official Bond Workmen's Compensation Multi-peril Umbrella Liability Public Official's Liability Police Professional Liability Boiler and Machinery Liability Unlawful and Intentional Death (Police Department Personnel, death resulting from an intentional and illegal act} P,~licy Number Coverage _ 65-26-41 $20,000 3-2215 1.5 rimes annual salary 24883 Various BA0014609-07 $1,000,000 30157954-1 $100,000 30158137 $100,000 FM552 $500,000 CPP0117219-06 $1,000,000 X00068591-02 $1,000,000 POL441-86-83 $1,000,000 94-019-88 $1,300,000 BMI-AT9442007-01 $2,000,000 ETB-102089 $75,000 97 THIS PAGE INTENTIONALLY LEFT BLANK 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 THIS PAGE INTENTIONALLY LEFT BLANK VILLAGE OF TEQUESTA, FLORIDA General Revenues by Source (Unaudited) (1) Last Ten Fiscal Years Licenses Fiscal Year Ended ~ and Sgptember 30 ~~ 1985 $1,777,305 $102,894 198b 1,729,412 104,014 1987 1,881,171 123,303 1988 2,143,933 170,834 1989 2,199,925 219,862 1990 2,485,814 190,743 1991 2,545,957 153,314 1992 2,645,035 222,465 1993 2,666,148 188,477 1994 2,833,720 198,000 (1) Includes General, Special Revenue, Debt Service, Capital Projects, and Expendable Trust Funds. (2) Includes intragovernmental services and interest income. Source: Village of Tequesta financial records. 98 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Charges for Fines and Intergovernmental Services Forefeits Miscellaneous(2) Total $348,936 $ 9,023 $43,330 $144,301 $2,425,789 385,952 11,869 42,929 151,640 2,425,816 421,385 8,880 51,126 123,140 2,609,005 568,091 19,562 53,034 166,547 3,122,001 701,112 32,941 51,555 338,392 3,543,787 872,494 14,146 37,903 304,227 3,905,327 513,839 17,442 38,035 241,371 3,509,958 528,276 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 99 VII.LAGE OF TEQUESTA, FLORIDA ' General Government Expenditures by Function (Unaudited) (1) Last Ten Fiscal Years ' Fiscal Year Ended General Public ~ptember 30 Government Safety (2) T~portation , 1985 $296,537 $1,143,971 $ 239,512 ' 1986 373,195 1,234,668 200,309 1987 401,854 1,328,602 306,292 1988 509,134 1,435,360 462,873 ' 1989 603,396 1,387,841 900,405 1990 671,631 1,725,165 1,206,458 1991 616,142 1,938,477 557,001 ' 1992 743,343 2,056,825 651,665 1993 939,549 2,552,513 592,751 1994 678,217 2,662,075 859,763 ' ' (1) Includes General, Special Revenue, Debt Service, Capital Project 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. ,~ ~ Culture Physical Human and Debt Environment(3) Services recreation Service Total $206,776 $10,907 $121,847 $89,603 $2,109,153 240,507 5,768 120,204 87,896 2,262,547 278,752 2,907 111,146 91,215 2,520,768 308,215 502 111,466 89,350 2,916,900 337,268 1,067 103,019 86,905 3,419,901 437,236 930 110,989 90,082 4,242,491 5,550 2,879 158,740 87,707 3,366,496 5,224 4,143 127,550 91,009 3,679,759 4,594 591 160,210 88,565 4,338,773 624 123,332 304,476 4,628,487 101 THIS PAGE INTENTIONALLY LEFT BLANK J 1 1 VII.LAGE OF TEQUFSTA, FLORIDA Property Tax Levies and Collections (Unaudited) (1) Last Ten Fiscal Years Fiscal Year Total Current Tax Percent Outstanding Delinquent Ended Member 30 Tax Levy f 1) Collections ~~1 of Levy Collected Delinquent Taxes Taxes to Tax Lew 1985 $1,038,027 $1,037,003 99.9% $ 1,024 .1 1986 1,129,458 1,128,128 99.9 1,330 .1 1987 1,255,399 1,252,073 99.7 3,326 .3 1988 1,501,241- 1,496,727 99.7 4,514 .3 1989 1,527,891 1,522,364 99.6 5,527 .4 1990 1,821,025 1,813,915 99.6 7,110 .4 1991 1,864,093 1,850,505 99.3 13,588 ~.7 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 (1) Includes discounts taken by property taxpayers. Source: Palm Beach County Tax Collector's office. 102 VILLAGE OF TEQUESTA, FLORIDA Taxable Value and Just Value of Taxable Property (Unaudited) Last Ten Fiscal Years Rea l Pro~r y Taxable September 30 Value Just Value 1985 $219,001,538 $275,901,415 1986 233,658,151 297,370,052 1987 257,766,850 324,296,888 1988 262,373,925 329,524,860 1989 290,375,566 366,488,883 1990 337,942,463 414,814,947 1991 346,506,060 424,334,994 1992 341,068,104 418,897,038 1993 329,131,590 406,420,054 1994 326,699,785 406,281,260 Source: Palm Beach County Property Appraiser's office. 103 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Personal Taxable Propg~y Just To Taxable tal Just Ratio Taxable Value Value Value Value Value To Just Value $10,902,190 $11,562,981 $229,903,728 $287,464,396 80% 10,812,334 11,562,008 244,470,485 308,932,060 799b 11,547,658 12,241,396 269,314,508 336,538,284 80°~ 12,052,258 12,977,252 274,426,183 342,502,112 80% 14,685,689 15,755,728 305,061,255 382,244,611 80% 16,463,806 21,797,356 354,406,269 43b,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 °% 104 VILLAGE OF TEQUFSTA, FLORIDA Property Tax Rates - All Direct and Overlapping Governments (Unaudited) (Per $1,000 of Assessed Value) Last Ten Fiscal Years South Florida County Water General School County Management Member 30 Fund Countv B r Li District 1985 4.9200 4.1836 7.1720 .3525 .4270 1986 5.0867 4.5271 7.2280 .3428 .4390 1987 5.3126 4.6190 7.5950 .3951 .5130 1988 5.7510 4.7862 8.1580 .9075 .4970 1989 5.7510 5.0562 8.4620 .9137 .5470 1990 6.1828 4.8904 9.1990 .3910 .5470 1991 5.4085 4.8314 9.2930 .3790 .5470 1992 5.7515 4.6440 9.7850 .3939 .5470 1993 5.9000 4.6221 9.6030 .3885 .5470 1994 5.9140 4.5499 10.0630 .3915 .5970 (1) Included in Village General Fund millage rate. At October 1, 1983, the Jupiter Fire Control District No. 1 became a part of Palm Beach County through consolidation. The County provided fire rescue service to the Village at an annual contract rate until Tequesta began its own Fire Rescue Service at October 1, 1993. Source: Palm Beach County Property Appraiser's office. 105 Florida Jupiter Naviga- Jupiter Fire tional Children's County Inlet District Inland Services Health Care Dis No. 1 District Council District Total .2290 (1) 17.2841 .2290 (1) 17.8526 .2115 (1) 18.6462 .1979 (1) .0670 .0923 20.4569 .1920 (1) .0395 .1537 21.1151 .1772 (1) .0370 .1929 1.2500 22.8673 .1434 (1) .0550 .2238 1.2500 22..1311 .1325 (1} .0530 .2215 1.4750 23.0034 .1257 (1) .0520 .3039 1.4750 23.0172 .1257 .0510 .3297 1.4750 23.4968 106 VII,LAGE OF TEQUESTA, FLORIDA Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita (Unaudited) Last Ten Fiscal Years Fiscal Year Ended Taxable Stem r 30 ~ulation* Value 1985 3,928 $229,903,728 1986 4,077 244,470,485 1987 4,141 269,314,508 1988 4,448 274,426,183 1989 4,479 305,061,255 1990 4,499 354,406,269 1991 4,508 362,567,496 1992 4,533 356,914,548 1993 4,551 344,814,635 1994 4,609 343,161,444 * Source: Palm Beach County Planning Board, University of Florida Estimates, Federal Census, and Village Building Department Records. 107 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 D Available Debt Value Per Canita $ 805,000 $109,769 $695,231 .309b $176.99 785,000 110,937 674,063 .27 165.33 760,000 118,377 641,623 .23 154.94 735,000 111,920 623,080 .22 140.08 710,000 121,839 588,161 .19 131.32 680,000 127,917 552,083 .16 122.71 650,000 128,978 521,022 .14 115.58 615,000 123,720 491,280 .14 108.37 580,000 120,530 459,470 .13 100.96 1,365,000 98,453 1,26b,547 .36 274.80 108 1 THIS PAGE INTENTIONALLY LEFT BLANK 1 1 1 1 1 1 1 1 1 1 1 1 1 VILLAGE OF TEQUESTA, FLORIDA Computation of Legal Debt Margin September 30, 1994 Total assessed value Legal debt margin. Debt limitation - 109b of total assessed value Total debt outstanding Less: amount available in debt service fund Total debt applicable to limitation Legal debt margin $2,108,662 98.453 109 $343,161.444 $ 34,316,144 2.010.209 X32.3 VILLAGE OF TEQUESTA, FLORIDA Computation of Direct and Overlapping Debt (Unaudited) September 30, 1994 Taxing Authority Village of Tequesta Palm Beach County Palm Beach County School Board Total Source: Above Government Entities Percentage Amount Applicable Applicable Net Debt to to Outstanding T~.q. u~sta T~questa $ 1,266,547 100.009b $1,266,547 433,600,000 .65 2,818,400 284,050.000 .65 1.846.325 $719.015.000 5 1 272 110 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 VII.LAGE 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 Member 30 'n i Interest Service (1~_ Expenditures 1985 $ 20,000 $69,235 $89,235 $2,109,153 4.2 1986 20,000 67,896 87,896 2,174,651 4.0 1987 25,000 65,855 90,855 2,520,768 3.6 1988 25,000 64,350 89,350 2,916,900 3.1 1989 25,000 b1,905 8b,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 3,36b,49b 2.b 1992 35,000 Sb,009 91,009. 3,b79,759 2.5 1993 35,000 53,Sb5 88,565 4,338,773 2.0 1994 221,383 83,093 304,47b 4,b28,487 b.b (1) Includes General, Special Revenue, Debt Service, Capital Projects and Expendable Trust Funds. 111 '. VILLAGE OF TEQUESTA, FLORIDA ' Revenue Bond Coverage Water Bonds (Unaudited) Last Ten Fiscal Years , Fiscal Year Net Revenue Ended Gross Operating Available for ' Sgptember 30 Revenues Ex~nses Debt Service 1985 $1,566,884 $1,239,255 $327,629 ' 1986 .1,620,609 1,310,250 310,359 1987 1,760,534 1,434,538 325,996 1988 1,834,930 1,437,407 397,523 ' 1989 2,142,260 1,555,291 586,969 1990 2,207,447 1,604,403 603,044 1991 2,240,220 1,629,337 610,883 1992 2,349,546 1,832,374 517,172 1993 2,566,614 2,051,891 514,723 1994 2,690,107 2,110,928 579,179 ' ' contract r uirin the V' a to urchase (1) Represents net debt service costs per a secunties eq g illag p an aggregate of $980,000 par amount of U.S. Treasury Bonds due February 15, 2007, , bearing interest at 7-5/89b, at an aggregate purchase price of $928,324. The purchase price of the Treasury Bonds is added to the gross debt service and the income from the Treasury Bonds is subtracted from gross debt service to compute Bond Service , Requirements. 1 112 i 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Debt Service Req uirements Debt Amortization Service 'n i n Account (1) Total Coveraee $ 25,000 $183,239 $ 34,035 $242,274 1.35 65,000 134,421 58,857 258,278 1.20 70,000 132,919 54,427 257,346 1.27 75,000 112,036 73,210 260,246 1.53 80,000 106,705 66,911 253,616 2.31 85,000 100,855 71,301 257,156 2.35 90,000 107,566 58,455 256,021 2.39 100,000 102,415 55,842 258,257 2.00 110,000 78,737 65,254 253,991 2.03 265,000 66,405 (15,653) 315,752 1.83 113 VILLAGE OF TEQUESTA, FLORIDA ' Property Value, Construction and Bank Deposits (Unaudited) Last Ten Fiscal Years ' Commercial Residential Cons truction (1~ Cons truction (,~) Propgr~y Value 3) , Number Number Fiscal of of Real Personal ni Value Units Value Deposits (2) Pr~gr~k ~perty , 1985 9 $4,692,681 33 $2,106,652 $224,302,732 $219,001,538 $10,902,190 1986 2 828,435 5 484,135 272,519,953 233,658,151 10,812,234 ' 1987 1 116,250 27 2,717,154 269,494,041 257,766,850 11,547,658 1988 6 6,803,410 24 3,358,458 294,073,604 329,524,860 12,052,258 1989 6 1,615,526 18 2,694,552 289,305,649 366,488,883 15,755,728 ' 1990 1 197,126 20 3,206,343 313,199,861 414,814,947 21,797,356 1991 1992 1 0 1,882,888 0 4 11 962,089 2,395,128 257,956,427 308,119,520 424,334,994 418,897,038 20,588,283 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 ' Source: (1) Village of Tequesta Building Department. , (2) Tequesta Commercial Banks and Savings and Loan Associations. , (3) Palm Beach County Property Appraiser's office. 114 1 1 1 1 1 1 1 1 1 1 1 1 VILLAGE OF TEQUESTA, FLORIDA Principal Taxpayers (Unaudited) September 30, 1994 Percentage 1994 of Assessed Assessed ~xp,~yers Tvne of Business Valuation Valuation County Line Plaza (K-Mart) (TA~MW'EST) Shopping Center $ 8,665,925 2.529b Tequesta Shoppes (Publix) (Sterling Tequesta/Trails) Shopping Center 5,499,420 1.60 Dorner Properties (Bank of Palm Beach Undeveloped & Trust Company) Real Estate 4,393,261 1.28 Tequesta Shopper, Ltd. (Waterway Village) (c/o Capital Management Lot A 3,632,972 1.05 Assoc., Inc. Barnett Bank (First National Bank of Jupiter/Tequesta) Banking 2,946,860 .85 Tequesta Country Club GolflSocial Club 2,592,166 .75 Lighthouse Plaza (Garden Square Shopper, Ltd.) Shopping Center 2,246,318 .65 Tequesta Fashion Mall (Edwin J. Nelson) Shopping Center 1,995,074 .58 SHW, Ltd. Real Estate 1,615,701 .47 Tequesta Corporate Center Feibel Recreation Center, Inc. & Tequesta Corp. Professional Center Partners Office Building 1.100,000 .32 4 7 7 1 .0796 Source: Palm Beach County Property Appraiser's Office 115 VILLAGE OF TEQUESTA, FLORIDA , Miscellaneous Statistics (Unaudited) September 30, 1994 ' Date of Incorporation: 1957 , Forms of Government: Council-Manager, 3 Councilmembers elected even years, 2 Councilmembers elected odd years Municipal Elections: Non-Partisan ' ~: Approximately 2 square miles , Miles of Streets: Approximately 44 lane miles Fire Protection: Number of stations - 1 ' Number of certified firefighters - 14 Fire Rating - 4 , Police Protection: Number of stations - 1 Number of certified officers - 15 ' Number of dispatchers - 4 Municipal Water D ment: Number of customers - 4,529 Average daily consumption - 2.605 million gallons , Miles of water mains -approximately 50 miles Sani S~ewa~e: Service provided by Loxahatchee River Environmental Control ' District (ENCON) Storm Sewers: Adequate coverage ' G_~ge Collection: Service franchised to Nichol's Sanitation Frequency of service is bi-weekly ' Electric Service: Florida Power & Light Company Telephone Service: Southern Bell Telephone & Telegraph Company ' Bu' ding Permits Issued: 804 Recreation and Culture: Number of parks - 4, approximately 52 acres ' Number of libraries - 1, branch of Palm Beach County System Number of volumes - 15,000-20,000 ' Municipal Employees: Full-time - 71 116 t 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 VILLAGE OF TEQUESTA, FLORIDA Demographic Statistics (Unaudited) Last Ten Fiscal Years Education Level in Years of Fiscal Population Per Capita Median Formal Unemployment ~ ~ 11 Income (2) Age (2) Schooline (2) Rate (~~ 1985 3,928 $ 8.89b 1986 4,077 5.9 1987 4,141 7.7 1988 4,448 7.2 1989 4,479 8.4 1990 4,499 20,362 7.9 1991 4,508 9.7 1992 4,533 8.8 1993 4,551 9.2 1994 4,609 8.4 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. 117 THIS PAGE INTENTIONALLY LEFT BLANK 1 1 ,, 1 EVERETT B. NOWLEN, CPA {18301984) EDWARD T. MOLT, CPA WLUAM B. MlIER, CPA ' ROBERT W.HENDRIX,JR.,CPA JANET R. BARICEVICH, CPA ii 1 1 NOWLEN, HOLT & MINER, P.A. CERTIFIED PUBLIC ACCOUNTANTS 215 FIFTH STREET SUITE 200 POST OFfICE BOX 347 WEST PALM BEACH, FLORA 33402-0347 TELEPHONE (407) 659-3060 FAX (407) 835-0628 KATHLEEN A. MNER, CPA R. GREGORY SMRH, CPA ROBERT W. HELMREX;H, CPA TERRY L. MORTON, JR., CPA N. RONALD BENNETT. CPA J. MICHAEL STEVENS, CPA MARK B. EL.HILOW, CPA DAN~LA' E. RUSSELL, CPA DONALD W. WILLIAMS, CPA MEMBERS AMERICAN WSTRUTE OF CERT~ED PUBLIC ACCOUNTANTS FLORDA IWSTITUTE ~ CEATIFED PUBLIC ACCOUNTANTS ACCOUNTN~G FIRMS ASSOCIATED NC. BELLE GLADE OFFICE 333 S.E. 2nd STREET POST OFFICE BOX 338 BELLE GUIDE, FLORIDA 33430-0338 TELEPHONE (407) 898-5812 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROLFAX'.°7, 9988248 STRUCTURE BASED ON AN AUDIT OF GENERAL PURPOSE OR BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS The Honorable Mayor and Village Council Village of Tequesta, Florida We have audited the general purpose financial statements of the Village of Tequesta, Florida, as of and for the yeaz ended September 30, 1994 and have issued our report thereon dated January 17, 1995. We conducted our audit in accordance with generally accepted auditing standazds and Government Auditing Standards, issued by the Comptroller General of the United States. Those standazds require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. In planning and performing our audit of the general purpose financial statements of the Village of Tequesta, Florida for the yeaz ended September 30, 1994, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure. The management of the Village of Tequesta, Florida is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management aze required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure aze to provide management with reasonable, but not absolute, assurance that assets are safe- guarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. 118 Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures in the following categories: Cash Investments Inventory Revenue, receivables and receipts Expenditures for goods and services and accounts payable Payroll and related liabilities Property, equipment and capital expenditures Debt and debt service expenditures Fund equities For all of the internal control categories listed above, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk. We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements. Seereg~tion of Duties There is inadequate separation of duties in some of the control cycles. The basic premise is that no one employee should have access to both physical assets and the related accounting records or to all phases of a transaction. A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. 1 1 I 119 ' Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and accordingly, would not ' necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe none of the reportable conditions described above is a material weakness. ' We also noted other matters involving the internal control structure and its operations that we have reported to the management of the Village of Tequesta, Florida in a separate letter dated ' January 17, 1995. This report is intended for the information of management and Village Council. This restriction ' is not intended to limit the distribution of this report, which is a matter of public record. ' ~~.Q.tw~ ~ I~k~+' of /rin..w- ~I~~ January 17, 1995 r~ 1 120 I ` ' NOWLEN, HOLT & MINER, P.A. ~ CERT~IED PUBLIC ACCOUNTANTS 215 FIFTH STREET SUITE 200 ' POST OFFICE BOX 347 WEST PALM BEACH, FLORIDA 33402-0347 TELEPHONE (407) 658-3060 FAX (407) 835-0628 MEMBERS ' EVERETT B. NOWLEN, CPA (1930-1984) KATHLEEN A. MNER, CPA AMERICAN NSTITUTE OF EDWARD T. HOLT, CPA R. GREGORY SMRH, CPA J. MICHAEL STEVENS, CPA CERTIFIED PU&JC ACCOUNTANTS WLl1AM B. MNER, CPA ROBERT W. HELMREK;H, CPA MARK B. ELMILOW, CPA FLORIDA NSTITUTE OF ROBERT W. HENDR9C, JR., CPA TERRY L. MORTON, JR., CPA DAN~LA' E. RUSSELL, CPA CERTFIED PUBLIC ACCOUNTANTS ' JANET R. BARX;EVICH, CPA N. RONALD BENNETT, CPA DONALD W. WILLIAMS. CPA ACCOUNTNG FitMS ASSOCIATED NC. BELLE GLADE OFFICE 333 S.E. 2nd STREET , POST OFFICE BOX 33B BELLE GLADE, FLORIDA 33430-0338 TELEPHONE 1407) 998.5812 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FAX (407) e9B~z48 BASED ON AN AUDIT OF FINANCIAL ' STA'1'EMEN'rS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDTI7NG STANDARDS ' The Honorable Mayor and Village Council ' Village of Tequesta, Florida We have audited the general purpose financial statements of the Village of Tequesta, Florida as ' of and for the year ended September 30, 1994, and have issued our report thereon dated January 17, 1995. t We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those ' standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. Com fiance with laws ulations contracts and rants a livable to the Vill a of T uesta, t P ~ ~ g PP ~ ~ Florida is the responsibility of the Village's management. As part of obtaining reasonable ' assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Village's compliance with certain provisions of laws, regulations, contracts, and grants. However, it should be noted that our objective was not to ' provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests indicate that, with respect to the items tested, the Village of Tequesta, ' Florida complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to , believe that the Village of Tequesta, Florida had not complied, in all material respects, with those provisions. 121 1 ' ,, We noted no immaterial instances of noncompliance. ' This report is intended for the information of management and Village Council. This restriction is not intended to limit the distribution of this report, which is a matter of public record. ' January l7, 1995 1 1 1 1 ' 122 I NOWLEN, HOLT & MINER, P.A. ~~ CERTIFIED PUBLIC ACCOUNTANTS 215 F~TH STREET SUIT-E 200 ' POST OFFICE BOX 347 WEST PALM BEACH, FLORIDA 33402-0347 TELEPHONE (407) 659-3080 FAX X407) 835-0628 , MEMBERS EVEIiEiT B_ NOWLEN, CPA (1930-t 984) KATHLEEN A. MNIER. CPA AMERICAN MSTfTUTE OF EDIIMARD T. HOLT, CPA R. GREGORY SMITH, CPA J. MICHAEL STEVENS, CPA CERTIFIED PUBLIC ACCOUNTANTS WWAM 8. Ml/ER, CPA ROBERT W. HELMREX;M. CPA MARK B. ELHILOW, CPA FLORDA IkSTRUTE OF ROBERT W. HENDRIX, JR., CPA TERRY L MORTON, JR., CPA DANELA' E. RUSSELL. CPA CERTi~D PUBLIC ACCOINrTANTS ' JANET R. BARX:EVICH, CPA N. RONALD BENNETT, CPA DONALD W. WILLIAMS, CPA ACCOUNTING Fi~AS ASSOCIATED INC. BEU-E GLADE OFFICE 333 S.E. 2ntl STREET , POST OFFICE BOX 338 BELLE GLADE, FLORIDA 33430-0338 MANAGEMENT LETTER rELEPr+oNE (4D71 t,9s-ss~ z FAX (4D7) 998-0248 , The Honorable Mayor and Village Council ' Village of Tequesta, Florida We have audited the general purpose financial statements of the Village of Tequesta, Florida for ' the year ended September 30, 1994 and have issued our report thereon dated January 17, 1995. In planning and performing our audit of the general purpose financial statements of the Village ' of Tequesta, Florida for the year ended September 30, 1994, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion ' on the general purpose financial statements and not to provide assurance on the internal control structure. ' As a result of this examination, we would like to present some recommendations for considera- tion by management. These suggestions are based primarily on the work done during our audit ' engagement, and we do not wish to imply that they cover every possible weakness. Neverthe- less, we do think that they deserve your careful evaluation. The status of these comments will be reviewed during the next audit engagement. We have already discussed many of these ' comments with the management of the City and we will be pleased to discuss them th further detail at your convenience, to perform any additional study of these matters, or to assist you in implementing the recommendations. ' PRIOR YEAR C011ZMENTS WHICH CONTINUE TO APPLY ' segregation 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. , 123 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. ' All other recommendations from the prior year audit were implemented. 1 Fvred Asset RecordkeeFing ' We noted that the detail fixed asset ro did not 1 forward rior P h~ Proper Y ce~Y P depreciation or calculate current year depreciation correctly. The software ' currently used by the Village is inadequate for the needs of the Village. ' We recommend that the Village purchase a software program that will provide assurance that all prior and current depreciation records are correct. S~~pliance with Florida Stance 218. S03 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. ' ~n~liance with Florida Statute 218.32 The financial report for the Village of Tequesta, Florida to be filed with the ' Department of Banking and Finance pursuant to Section 218.32(1)(b), Florida Statutes has not been prepared as of the date of the audit report. The report is due on or before March 31, 1995. 124 1 Oversight Unit and Con~onent Units ' The Village of Tequesta, Florida is a municipal corporation organized pursuant to Spacial Act 57-1915, Laws of Florida, 1957. Based upon the application of t 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 Firefighters' Retirement System which is included as a pension trust fund. ' Other Gt:rrent Year Comments Our audit did not disclose any further items that would be required to be reported ' under Chapter 10.554(1)(f), Rules of the Auditor General. This report is intended for the information of the management and members of the Village Council. This restriction is not intended to limit the distribution of this report, which is a matter , of public record. January 17, 1995 1 1 1 1 1 1 1 125