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CAFR_FY Ending_09/30/19931 1 1 1 1 1 1 1 I COMPREHENSIVE ANNUAL FINANCIAL REPORT ' VILLAGE OF TEQUESTA, FLORIDA September 30, 1993 1 1 Prepared by the Finance Department I VILLAGE OF TEQUESTA, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT September 30, 1993 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 30-60 Supplemental Information General Fund Schedule of Revenues--Budget and Actual 61-62 Schedule of Departmental Expenditures-- Budget and Actual 63-71 Special Revenue Fund Schedule of Revenues--Budget and Actual 72 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 5 , VILLAGE OF TEQUESTA, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT September 30, 1993 TABLE OF CONTENTS (Continued) Page Number Financial Section (continued) Proprietary Fund (Enterprise Fund) Schedule of Operating Expenses--Budget and Actual 73 Comparative Summary of Operations--Fiscal Years Ended September 30, 1993 and 1992 74 Schedule of Restricted Accounts Under Revenue Bond Ordinance 75-76 Amortization Schedule--Water Refunding Revenue Bonds -Series 1985 77 Fiduciary Funds Combining Balance Sheet 78 Statement of Changes in Assets and Liabilities -- Agency Fund 79 General Fixed Assets Schedule of General Fixed Assets by Source 80 Schedule of General Fixed Assets by Function 81 Schedule of Changes in General Fixed Assets By Function 82 All Funds Schedule of Investments 83 Schedule of Insurance 84 Statistical Section General Revenues by Source 85-86 General Government Expenditures by Function 87-88 Property Tax Levies and Collections 89 Taxable Value and Just Value of Taxable Property 90-91 Property Tax Rates--All Direct and Overlapping Governments 92-93 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita 94-95 Legal Debt Margin 96 Computation of Direct and Overlapping Debt 97 VILLAGE OF TEQUESTA, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT September 30, 1993 TABLE OF CONTENTS (Continued) Page Number Statistical Section (Continued) Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures 98 Revenue Bond Coverage--Water Bonds 99-100 Property Value, Construction and Bank Deposits 101 Principal Taxpayers 102 Miscellaneous Statistics 103 Demographic Statistics 104 Other Reports Independent Auditor's Report on Internal Control Structure Related Matters Noted in a Financial Statement Audit Conducted in Accordance with Government Auditing Standards 105-107 Independent Auditor's Report on Compliance with Laws and Regulations Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Issued by the GAO 108-109 Management Letter 110-113 1 1 1 1 1 1 1 1 1 1 1 1 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 15, 1994 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, 1993, is hereby submitted. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with Tequesta. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the financial position and results of operations of the various funds and account groups of Tequesta. All disclosures necessary to enable the reader to gain an understanding of Tequesta's financial activities have been included. The Comprehensive Annual Financial Report is presented, in four sections: introductory, financial, statistical and other reports. The introductory section includes this transmittal letter, Tequesta's organizational chart and a list of principal officials. The financial section includes the general purpose financial statements and schedules, as well as the auditor's report on the general purpose financial statements. The statistical section includes selected financial and demographic information, generally presented on a multi-year basis. The other reports section includes the auditor's reports on internal control, compliance and the management letter. This report includes all funds and account groups of Tequesta. Tequesta provides a full range of services. These services include police protection; 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 also contracted with Palm Beach County for fire-rescue service, and a privately owned sanitation company for refuse and recycling collection service. Start-up activities for a Tequesta Municipal Fire-Rescue Department were initiated in fiscal year 1993. As such, the Firefighters' Retirement System is included in this report as a component unit, specifically as the Firefighter's Pension Trust Fund. ~e~y~r~~ ~~~,~~~~ ECONOMIC CONDITION AND OUTLOOK ' Tequesta 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. During fiscal year 1990, Tequesta adopted, in concept, a preliminary plan for development of a "Town Center Master Plan" fora 90-acre area located in the center of the Tequesta commercial business district. The plan provides for the ' construction of residential, cultural and commercial buildings within the area. Infrastructure improvements for the area, to include roads and drainage, are proposed to be constructed by a special taxing district. Infrastructure financing is anticipated to be provided by the issuance of ' 20-year special assessment bonds. This area represents the majority of Tequesta' future development, and its development is eagerly awaited by the citizens of the community. As a result of the downward economic cycle affecting the nation currently and during the ' past few years, development of the "Town Center Master Plan" has been temporarily delayed; however, recent interest shown by developers regarding this property indicates development of ' portions of the area should commence soon. For the five year period immediately preceding fiscal year 1992., property values 1 increased an average of 8.9 % a year. Fiscal year 1992 experienced a 1.5 % decrease in property values. Property values continued to decrease in Fiscal Year 1993, an additional 3.4%, as was projected at the beginning of the fiscal year. ' Based on the historical data presented and current projections of property tax values, ' Tequesta 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 Tequesta's financial position while keeping in mind the tax burden of our citizens. ' MAJOR IlVITIATIVES ' During the preparation of the 1993 budget, Tequesta was confronted with various increased operating expenses, and also anticipated were decreases in ad valorem property tax ' revenues, resulting from a decrease in commercial property values, decreases in interest income on short-term treasury investments and various intergovernmental revenues. Tequesta's management addressed these concerns by: 1 ° Defemng selected capital improvement projects in response to reduced revenues. ' ° Minimized departmental expenditure requests to a level commensurate with declining revenues. ' ° Implemented independent Tequesta Fire-Rescue Department as outlined below. ' 2 ' FIRE-RESCUE IlVITIATIVE ' During this fiscal year, the Village Council acted upon recommendations from the Fire- Rescue Task Force to establish a Tequesta Fire-Rescue Department. The chronology of events undertaken was as follows: ° August 1992 -Village Council voted to opt-out of Palm Beach County Fire-Rescue contract. ' September 1992 -Village Council created aFire-Rescue Task Force of citizens to study the fire-rescue issue and recommend feasibility of ' proposed Village Council action. ° October 1992 -The Task Force began its work effort. ' December 1992 -Task Force recommended Tequesta form its own department. ' January 1993 -Village Council authorized a referendum to be held at the March Municipal Election to determine the desires of the Village residents with regard to establishing a Tequesta Fire-Rescue Department. ° March 1993 -Referendum held, Village electors voted 66R'o to 34% in ' favor of establishing a Tequesta Fire-Rescue Department. ° March 1993 -Village Council effectuated an implementation plan to establish a Tequesta Fire-Rescue Department effective October 1, 1993. ° April 1993 -Chief of Fire-Rescue Department was hired and he and the ' Village Manager undertook the numerous challenges and work associated with creating aFire-Rescue Department designed to provide a level of service equal to or better than the fire-rescue services being provided by ' contract with Palm Beach County Fire-Rescue Department. ° October 1, 1993 -The Tequesta Fire-Rescue Department was brought on line as scheduled and fire-rescue services are now being provided by Tequesta. ' The Village Council, Village Officials, and citizens cited above are commended for their decisive action and the professionalism displayed during the process of transforming this ' complex conceptual plan into a reality. In addition to the projected long-term cost savings, which will accrue to Tequesta residents and property owners in the form of reduced taxes for this important and vital service, our citizens will also receive an enhanced quality of fire-rescue ' services, owned and operated by the people of this community providing peace of mind associated therewith. 3 INFRASTRUCTURE MAINTENANCE AND EXPANSION ' Maintenance and expansion of the community's general infrastructure (such as roads, ' bridges, sidewalks, storm water drainage systems, streetscape beautification projects, expansion of potable water treatment facilities and development/redevelopment of the Tequesta Town Center) 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. , During the year, Capital Projects Fund expenditures totaled $185,178 for the following improvements: ' Transportation Improvements ' U.S. Hi hwa One and Waterwa Road g Y Y $ 4 700 Country Club Drive Pedestrian Crossing Tequesta Drive West Paving 9,057 52,338 ' County Road 707 Signage 11,654 Gallery Square No. Right-of--Way Tequesta Drive and Seabrook Intersection 30, 885 7, 805 ' Tequesta Dnve Widening Project R.O.W. 2.993 119.432 ' Park and Recreation Improvements ' Tequesta Park and Lighting 7,758 Tennis Court Resurfacing 9,071 Constitution Park 4,509 ' 21 38 ' Building Improvements Village Hall Roof 44,408 ' Total 185 178 Capital outlay in the Proprietary Fund for 1993 totaled $804,562, a summary of which ' is reported below. 1 ' 1993 Capital Outlay ' Improvements Other Than Buildir~c Wells 25, 26 & 27 Transmission Main $446,218 ' Well 24 Construction 259,293 Diesel Fuel Storage Tank (1,000 gal.) 15,830 Well 8R Rehabilitation 7,341 ' Hydropneumatic Water Tank 5,175 Water Treatment Plant Landscaping 2,005 Le Park, Heritage Oaks Water Main Loop 1.242 737.104 ' E~uinment and S;vstem Renewal & Replacement Operating Equipment Replacements 20,767 ' Meters, Valves & Hydrants 14,582 Hand Held Meter Readers 14,218 Pick-Up Truck 9, 312 AIA Water Main Painting 4,401 Filter Media Replacement 4.178 ' 67.458 ' Total 804 562 t FINANCIAL INFORMATION The management of the government is responsible for establishing and maintaining an ' internal control structure designed to ensure that the assets of the government are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of the financial statements in conformity with generally accepted accounting ' principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation ' of costs and benefits requires estimates and judgments by management. Budgetary Controls 1 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 ' S 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 1E~nctions Revenues ' 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, 1993 and the amount and percentage of increases and decreases in relation to prior year revenues. ' Percent Increase of ' Percent (Decrease) Increase Source Amount of Total From 1992 Decrease Taxes $2, 666,148 72.93 % $21,113 .80 % ' Licenses and Permits 188,477 5.16 (33,988) (15.28) Intergovernmental 531,696 14.55 3,420 .65 Charges for Services 21,304 .58 (5,870) (21.60) ' Fines and Forfeits 46,037 1.26 14,390 45.47 Interest 65,025 1.78 (9,288) (12.50) Miscellaneous 15,115 .41 (13,059) (46.35) , Inteagovernmental Services 121,900 3.33 8.500 7.50 TOTAL REVENUES 3 655 702 100.00% 14 782 ' Taxes accounted for the major source of revenues and the most significant increase in t actual revenues received for 1993. Tax revenues consist of three distinct sources: ad valorem property tax, franchise fees and utility service taxes. The ad valorem property tax rate for 1993 was 5.9000 mills, an increase of 2.6 % over the previous year's millage rate of 5.7515 mills. ' Such increase was required to balance the General Fund Budget as a result of ad valorem property tax values decreasing 3.4% from $356,914,548 the previous year to $344,814,635 for 1993. ' Fines and forfeitures showed a significant increase over the previous year resulting primarily from increased fines for traffic and building code violations. , The most significant decreases in revenues were reflected in the Department of Community Development resulting from a decrease in the issuance of permits for new construction of residential and commercial property. Interest income, from the investment of temporary surplus cash, also showed a moderate decrease as a result of lower interest rates in the financial securities market. ' 6 ' Our analysis of the revenue data presented indicates attention must be given to the possibility of future ad valorem taxable value decreases and the spiraling effect such decreases ' could have on the Tequesta millage rate for government operations. Expenditures The following schedule presents a summary of General Fund, Special Revenue Fund, Debt Service Fund, Capital Projects Fund, and Expendable Trust Fund expenditures for the ' fiscal year ended September 30, 1992, and the amount and percentage of increases and decreases in relation to prior year amounts: ' Percent Increase of Percent (Decrease) Increase ' Pu o Amount of Total From 1992 Decrea e General Government $ 939,549 21.66% $196,206 26.40% ' Public Safety 2,552,513 58.83 495,688 24.10 Physical Environment 4,594 .10 (630) (12.06) Transportation 428,910 9.89 177 .04 ' Human Services 591 .O1 (3,552) (85.73) Culture and Recreation 138,873 3.20 11,323 8.88 Capital Outlay 185,178 4.27 (37,754) (16.94) Debt Service Pnncipal Retirement 35,000 .80 ' Interest 51,660 1.20 (2,940) (5.38) Final Charges 1.905 .04 496 35.20 Total Expenditures 4 338 773 10 659 014 17.90% Public Safety and General Government expenditures reported for 1993 reflected the most t significant increases over prior years. Public Safety increased expenditures were attributed to: Start-Up-Costs for the Tequesta Fire-Rescue Department totaling $387,242, which included fire-rescue equipment purchases of $158,972 and building renovations of $76,331. The Palm Beach County Fire-Rescue Service contract for 1993 increased $65,903 over the previous year. General Government increases totaling $196,206 are primarily attributed to: increased capital outlay expenditures of $162,186, and increased employee salary and benefit expenses. ' Our analysis of the expenditure data presented indicates efforts must be taken by Tequesta to constrain the rising costs of providing government services without reducing the level of services currently being provided. Alternative revenue sources must be explored such as: expanding the property tax base by growth and development in the community; and possibly implementing user fees for appropriate government services. ' 7 ~' General Ftind Balance ' The undesignated balance of the General Fund was $623,345 on September 30, 1993, ' which is adequate to provide the capital resources necessary for government operations. The likelihood of the government entering the short-term debt market to pay for current operating expenditures is highly remote. ' PROPRIETARY OPERATIONS ' Water Operations T uesta's ro rie water o rations are re rted in the Ente rise Fund. T uesta's ' ~ P P ~'Y Pe Po rP ~1 potable water system consists of a 2.7 million gallon per day water treatment plant and a distribution system of approximately 50 miles of water mains and water storage facilities with , a capacity of 1.75 million gallons. Tequesta also purchases 1.5 million gallons of water per day, contracted minimum, at a bulk rate, from the Town of Jupiter, Florida. The current agreement ' extends through July 15, 2006. Revenues and Increase Percent of Water Consumption 1993 1992 (Decrease) Increase ' 1 L000 Gallons Amount Amount From 1992 rease Water Sales $2,388,504 $2,131,451 $257,053 12.06% ' Total Water Consumption 900,459 925,602 (25,143) (2.72%) Average Daily Consumption 2.467 2.536 (.069) (2.72 %) ' Refuse/Recycling Operations f t Re use and recycling collection operations are also accounted for in the Enterprise Fund. The Enterprise Fund income and expense data for 1993 is shown in the following schedule. Refuse/ Income and Expenses Water Recycling Total ' ratin Revenues ~ g $2 388 504 $300 590 $2 689 094 > Operating Expenses 2,051,891 305.166 2,357.057 ' Operating Income (Loss) 336,613 (4,576) 332,037 Non-Operating Revenues (expenses) 107.019 107,019 , Income (loss) before Operating transfer 443,632 (4,576) 439,056 Operating transfer out (260.000) (260.000) ' Net Income ss ~ ) 183 632 4 576 ~- -~ 179 056 ~~ s ~ 1 EnterRrtise Fund Bonded Debt ' On January 1, 1985, Tequesta issued $1,525,000 Water Refunding Revenue Bonds. The bonds received Moody's AAA, and Standard & Poor's AAA (NIBIA) ratings. The bond sale proceeds were used to refund Series 1978 Water Refunding Revenue Bonds. The bonds are ' secured by the net revenues of the Enterprise Fund. On September 30, 1993, $825,000 of the bonds remained outstanding. Fiduciary Operations Tequesta's fiduciary operations consist of an Agency Fund used to account for ' investments held by the government as trustee for employees participating in a deferred compensation plan administered by the ICMA Retirement System. ' In 1991, an Expendable Trust Fund was established to account for forfeitures received by the Police Department. ' In the current fiscal year, Tequesta established a pension trust fund to account for the Firefighters' Retirement System. ' Debt Administration ' The Debt Service Fund is used to account for the accumulation of resources for the payment of general long-term principal, interest and related costs. The General Long-Term Debt Account Group is used to account for long-term liabilities expected to be financed from ' governmental funds. The government issued $910,000, Series 1979 Improvement Revenue Bonds, on October 1, 1979, to finance drainage improvements. The bonds received Moody's A and Standard & Poor's AAA (MBIA) ratings. The bonds are secured by the pledge of and ' first lien on the guaranteed entitlement portion of the state revenue sharing trust funds, franchise fees, public service utility taxes and occupational license taxes. On September 30, 1993, $580,000 of the bonds remained outstanding. ii Tequesta has a legal debt limit established by Section 6.02 of the Village Charter. The aggregate indebtedness regardless of type (general obligation bonds, revenue bonds or special assessment bonds) cannot exceed 10 % of the assessed taxable value of real property located within Tequesta. As of September 30, 1993, taxable real property within Tequesta was assessed at $329,131,590. During the current year, Tequesta did not issue any bonded debt. As of September 30, 1993, Tequesta's net bonded debt was $459,470, the ratio of net bonded debt to taxable value was 13 %, and the net bonded debt per capita was $100.96. Cash Management ' Tequesta maintains two pooled cash accounts known as the general corporation investment ' account and the water enterprise investment account. The equity of all funds comprising the investment accounts is maintained at all times. Cash requirements are constantly monitored by the Finance Director and temporary idle cash is approved for investment by the Village Manager ' upon recommendation from the Finance Director. The investment policy of Tequesta is to maximize its investments in high quality risk-free securities authorized by State statutes, while maintaining a competitive yield on its portfolio. ' Tequesta's investments for the current year consisted of deposits with the State Boazd of Administration -Local Government Surplus Funds Trust Fund Investment Pool, obligations of ' the U.S. government and amounts held by Tequesta's agent in a deferred compensation plan. Investments with the State Board of Administration consist of obligations of the U.S. Treasury ' and its agencies, money market securities of highest quality such as commercial paper, banker's acceptance, corporate notes and repurchase agreements. Because of the short maturities and high quality, securities in this fund aze considered practically risk free. ' On September 30, 1993, investments held by Tequesta totaled $3,540,831, which aze detailed in Note 2, Notes to Financial Statements. The average yield on investments maturing ' during the yeaz was 3.56%. Risk Management ' During 1993, Tequesta continued using third-party insurance coverage for its Risk Management Program. Also during the year, the government distributed MSDA -Material ' Safety Data Sheets, in accordance with .the 1986 Congressional Emergency Planning and Community Right-to-Know Act. A detailed list of insurance in effect is contained in the Schedule of Insurance section of this report. ' OTHER INFORMATION ' Indeuendent Audit State Statutes require an annual audit by independent certified public accountants. The ' accounting firm of Nowlen, Holt & Miner, CPA's, was selected to conduct Tequesta's audit. The auditor's report on the general purpose financial statements is included in the financial ' section of this report. 10 ' 1 ' Awar ' The Government Finance Officers _ Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Tequesta for its comprehensive annual financial report for the fiscal year ended September 30, 1992. This was the eleventh consecutive ' year that Tequesta has received this prestigious award. In order to be awarded a Certificate of Achievement, Tequesta published an easily readable and efficiently organized comprehensive annual financial report. This report satisfied both generally accepted accounting principles and ' applicable legal requirements. A Certificate of Achievement is valid for a period of one year. We believe that our ' current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. ' Acknowledgements ' The preparation of the Comprehensive Annual Financial Report on a timely basis was made possible by the dedicated service of the entire staff of the Finance Department. Each member of the departments mentioned has our sincere appreciation for the contributions made ' in the preparation of this report. In closing, without the leadership and support of the Village Council of the Village of ' Tequesta, preparation of this report would not have been possible. Sincerely, ' Thomas G. Bradford Village Manager 1 r ~~ Bill C. ascavelis Direc r of Finance ' 11 Certificate of Achievement for Excellence in Financial Reporting Presented to Village of Tequesta, Florida For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 1992 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 govemment accounting and financial reporting. NEE OFpj~~ `NtI~G~(J~'~'~- 4~ ~ W ~ ~ST~~ES N O „o„ s President pNt-6~ ~`~ ~~~~%~~ Executive Director 12 1 1 1 VILLAGE OF TEQUESTA ORGANIZATION CHART W VILLAGE OF TEQUESTA, FLORIDA Council -Manager Form of Government VILLAGE COUNCIL - 1992-1993 Ron T. Mackail Mayor William E. Burckart Vice-Mayor Joseph N. Capretta Councilmember Earl L. Collings Councilmember Elizabeth A. Schauer Councilmember VILLAGE OFFICIALS Thomas G. Bradford Village Manager John C. Randolph Village Attorney (Jones, Foster, Johnston & Stubbs, P.A.) Joann Manganiello Bill C. I{ascavelis 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 ii 1 ii ii VILLAGE OF TEQUESTA, FLORIDA FINANCIAL STATEMENTS WITH INDEPENDENT AUDITOR'S REPORT THEREON SEPTEMBER 30, 1993 C NOWLEN, HOLT & MINER, P.A. CERTIFIED PUBLIC ACCOUNTANTS 215 FIFTH STREET SUITE 200 POST OFFICE BOX 347 WEST PALM BEACH, FLORIDA 33402-0347 TELEPHONE (407) 6593060 FAX (407) 835-0628 MEMBERS AMERICAN INSTITUTE OF EVERETT B. NOWLEN. CPA (1 930-~ 984) KATHLEEN A. MINER. CPA TERRY L. MORTON, JR., CPA CERTIFIED PUBLIC ACCOUNTANTS EDWARD T. HOLT, CPA KIM HATCHER BEAUMONT, CPA N. RONALD BENNETT, CPA FLORIDA INSTITUTE OF WILLIAM B. MINER. CPA MARILYN ROBERTS, CPA J. MICHAEL STEVENS, CPA CERTIFIED PUBLIC ACCOUNTANTS ROBERT W, HENDRIX. JR-, CPA R. GREGORY SMITH, CPA ROBIN A. KOCIELKO, CPA ACCOUNTING FIRMS ASSOCIATED INC. JANET R. BARICEVICH, CPA ROBERT W. HELMREICH. CPA MARK B. ELHILOW, CPA BELLE GLADE OFFICE 333 S.E. 2nd STREET ' POST OFFICE BOX 338 BELLE GLADE, FLORIDA 33430-0338 TELEPHONE (407) 996-5812 FAX (407) 996-6248 ' INDEPENDENT AUDITOR'S REPORT ' 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, 1993, 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 aspects, the financial position of the Village of Tequesta, Florida, as of September 30, 1993, 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 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 24, 1994 16 1 u 1 GENERAL PURPOSE FINANCIAL STATEMENTS VILLAGE OF TEQUESTA, FLORIDA Combined Balance Sheet -All Fund Types and Account Groups September 30, 1993 Assets and other debits Cash and cash equivalents Cash with fiscal agent Investments Accounts receivable (net of allowance for uncollectibles) Due from other funds Due from other governments Inventories of supplies Unamortized debt issue costs Restricted assets Cash and cash equivalents Investments Fixed assets Amount available in debt service fund Amount to be provided for retirement of general long-term debt Total assets and other debits Governmental Fund Types Special Debt Capital General Revenue Service Projects $ 163, 655 $ 87, 309 1,089,181 $ 13,132 $ 212,463 60, 830 107,398 119,40] 4,125 4,851 18,829 15,935 1,015 1 273 911 110 989 181 360 331 864 17 t 1 1 1 ' Proprietary Fiduciary Fund Type Fund Types Account Groups ' Trust General General Totals and Fixed Long-Term (Memorandum Enterprise Agency Assets Debt OnIX) $ 186,032 $ 3,419 $ $ $~ 666,010 t ~ 60,830 1,366,911 182,196 ~ 2,865,087 241 736 250,712 16,270 8,640. 43,739 15,935 19,977 20,992 ' 22,851 22,851 618,646 ~ 618,646 1,718,218 ~ 1,718,218 5,580,732 1, 886,018 7,466,750 120,530 120,530 1,217,412 1,217,412 9 771 373 194 255 1 886 018 1 337 942 $15.087,712 ' (Continued) ' 18 r VILLAGE OF TEQUESTA, FLORIDA ~ Combined Balance Sheet -All FFund Tyypes and Account Groups S b 1 30 3 eptem er , 99 (Continued) Governmental Fund Types Special Debt Capital General Revenue Service Projects Liabilities, equity and other credits Liabilities Accounts payable $ 71,225 $ $ $ 39,606 Accrued liabilities 55,831 Matured interest payable 25,830 Matured bonds payable 35,000 Payable from restricted assets Accounts payable Deposits Due to other funds 8,640 16,270 Due to other governments 4,853 Deferred revenue 3,180 41,835 Contracts payable Deferred compensation payable Current pportion of: Capitarized 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 143.729 58.105 60.830 39.606 Equity and other credits Investments m en r l f d t g e a ixe asse s Contributed capital Retained earnings Reserved for revenue bond debt service and capital improvements Unreserved Fund balances Reserved for: Inventory of supplies 1,015 Debt service 88,720 Law enforcement Employees' retirement plan Recreation and parks 96,910 Encumbrances 354,612 11,881 Unreserved Designated for: Compensated absences 44,300 Equipment purchase Road roject 10,000 52 34 p , 4 Debt service 31,810 Undesignated 6233345 52.884 228.033 Total equity and other credits 1.130.182 52,884 120.530 292.258 Total liabilities, equity and other credits 1 273 911 110 989 181 360 331 864 19 1 1 1 1 1 1 1 1 Proprietary Fiduciary Fund TXpe Fund T~s Trust and En rise Agency $ 99, 695 $ $ 12,858 3,335 191,744 18, 829 3,873 20,541 8,234 130,000 47,226 15,921 695,000 1.236.316 3,055,135 2,137,942 3,341,980 182,196 1 21 2,516 9,543 A n rou ener ene Fixed Long-Term Assets Debt 279,472 478,470 580,000 1.337.942 1,886,018 8.535.057 12.059 1.886,018 9 771 373 194 255 1 886 018 1 337 942 See notes to financial statements. 20 Totals (Memorandum Onlyl $ 210,526 68, 689 25,830 35,000 3,335 191,744 43,739 8,726 45,015 20,541 182,196 8,234 130,000 326,698 494, 391 580,000 695,000 (10.940) 33058.724 1,886,018 3,055,135 2,137,942 3,341,980 1,015 88,720 2,516 9,543 96,910 366,493 10'000 52;344 31,810 904.262 12.028.988 15 087 712 VILLAGE OF TEQUESTA, FLORIDA Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - All Governmental Fund Types and Expendable Trust Funds For the Fiscal Year Ended September 30, 1993 General Revenues Taxes $1,965,220 Licenses and permits 112,827 Intergovernmental 402,480 Charges for services 21,304 Fines and forfeits 39,486 Interest 55,359 Miscellaneous 15,115 Intragovernmental services 121.900 Total revenues 2,733,691 Expenditures Current General government 939,549 Public safety 2,546,553 Physical environment 4,594 Transportation 428,910 Human services 591 Culture/recreation 138, 873 Capital outlay Debt service Principal retirement Interest Fiscal charges Total expenditures 4,059.070 Excess of revenues over (under) expenditures (1,325.379) Other financing sources (uses) Debt proceeds 473,000 Operating transfers in 1,020,000 Operating transfers out (275.825) Total other financing sources (uses) 1.217,175 Excess of revenues and other sources over (under) expenditures and other uses (108,204) Fund balances, October 1, 1992, as restated 1.238.386 Fund balances, September 30, 1993 1 130 182 21 i~ i~ i i F ary duc Governmental Fund Types Fund T e Totals Special Debt Capital Expenda le (Memorandum Revenue Service Projects Trust Fund Onlyl $ 700, $ $ $ 666,148 $ 2 75,650 188,477 129,216 531,696 21,304 1 6,551 46,037 5,375 4,291 65,025 15,115 121.900 905.794 _ 5.375 4.291 6.551 3,655.702 939,549 5,960 2,552,513 ' 4,594 428,910 591 138,873 185,178 185,178 35,000 35,000 51,660 51,660 ' 1.905 1.905 ' 905 794 88.565 _ 185.178 5,960 4,338.773 . 8_( 3.190) 1( 80,887) 591 (683.071) ' 473,000 80, 000 340, 825 1, 440, 825 90f Sa0~0) (1.180.825) ' 90( 5.000) 80.000 340.825 733.000 794 (3,190) 159,938 591 49,929 52,090 123.720 132.320 1.925 1.548.441 ' S2 884 120 530 292 258 2 516 1 598 370 See notes to financial statements. 22 VILLAGE OF TEQUESTA, FLORIDA Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Governmental Fund Types For the Fiscal Year Ended September 30, 1993 Revenues Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeits Interest Miscellaneous Intragovernmental services Total revenues Expenditures Current General government Public safety Physical environment Transportation Human services Culture/recreation Capital outlay Debt service Principal retirement Interest Fiscal charges General Fund Variance - , Favorable Bud eg r _ Actual (Unfavorable) $ 1,971,700 111,830 371,120 30,500 34,750 52, 020 21,250 121.900 2.715 X070 $ 1,965,220 112,827 402,480 21,304 39,486 55,359 15,115 121.900 2,733.691 $ (6,990 31,360 (9,196) 4,736 3,339 (6,135) 18.621 1 1, 367, 730 2,625,730 5,000 445,475 6,050 145,650 939,549 2,546,553 4,594 428,910 591 138,873 428,181 79,177 406 16,565 5,459 6, 777 Total expenditures 4.595,635 4,059,070 536.565 Excess of revenues over (under) expenditures (1,880.565) (1,325.379) 555.186 Other financing sources (uses) Debt proceeds 473,000 473,000 Operating transfers in 1,020,000 1,020,000 Operating transfers out (275.825) X275.825) Total other financing sources (uses) 1.217.175 1.217.175 Excess of revenues and other sources over (under) expenditures and other uses 663 390 (108,204) 555 186 Fund balances, October 1, 1992, as restated 1.238.386 Fund balances, September 30, 1993 $ 1,130.182 1 ~l 23 1 1 1 1 1 1 S pecial Revenue Fund Debt Service Fund Variance - Variance - Favorable Favorable Budget Actual (Unfavorable) Budget Actual Unfavorable) $ 701,000 $ 700,928 $ 72) $ $ $ 72,000 75,650 3, 50 120,000 129,216 9,216 6,000 5,375 (625) 893.000 905.794 12.794 6.000 5.375 (625) 893.000 905.794 12,794 (905.000) (905.000) X905,000) (905.000) 12 000 794 12 794 52.090 52 884 35,000 35,000 51,660 51,660 1,905 1,905 88.565 88.565 8~~) 8~) ~) 80,000 80,000 80.000 80,000 2 565 (3,190) 625 123 72 120 530 (Continued) 24 VILLAGE OF TEQUESTA, FLORIDA Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Governmental Fund Types For the Fiscal Year Ended September 30, 1993 (Continued) C~tal Proiects Fund Revenues Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeits Interest Miscellaneous Intrrgovernmental services Total revenues Ex enditures Current General government Public safety Physical environment Transportation Human services Culture/recreation Capital outlay Debt service Principal retirement Interest Fiscal charges Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses) Debt proceeds Operating transfers in Operating transfers out Total other financing sources (uses) Excess of revenues and other sources over (under) expenditures and other uses Fund balances, October 1, 1992 Fund balances, September 30, 1993 Variance - Favorable Budget Actual (Unfavorable) $ $ $ 5, 000 4, 291 (709) 5.000 554,070 554,070 (549.070) 600, 800 437,825 1.038.625 489 555 25 4,291 185,178 185.178 18_ ( 0.887) 340,825 340.825 159,938 132,320 292 258 ~, i 368, 892 , 1 368.892 368.183 ' 600,800) (97,000) (697.800) 329 617 ~~ 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 _ Totals (Memorandum Only1 Variance - Favorable Budge, t Actual Unfavorable) $ 2,672,700 $ 2,666,148 $ (6,552) 183,830 188,477 4,647 491,120 531,696 40,576 30, 500 21, 304 (9,196) 34,750 39,486 4,736 63,020 65,025 2,005 21,250 15,115 (6,135) 121.900 121.900 3.619.070 3.649.151 30.081 1,367,730 939,549 428,181 2,625,730 2,546,553 79,177 5,000 4,594 406 445,475 428,910 16,565 6,050 591 5,459 145,650 138,873 6,777 554,070 185,178 368,892 35,000 35,000 51,660 51,660 1.905 1,905 5.238.270 4.332.813 905,457 (1 619.200) (683.662) 935.538 1,073,800 473,000 (600,800) 1,537, 825 1,440, 825 (97,000) (1.180.825) _11,180.825) 1.430.800 733.000 69~ 7.800) 188 400) 49,338 237 738 1,546.516 1 595 854 See notes to financial statements. 26 1 1 1 ii 1 1 Operating revenues VILLAGE OF TEQUESTA, FLORIDA Statement of Revenues, Expenses and Changes in Retained Earnings/Fund Balance Proprietary Fund Type and Similar Trust Fund For the Fiscal Year Ended September 30, 1993 Proprietary Fiduciary Fund Type Fund Tvne Pension Enterprise Trust Fund Charges for services -water $2,388,504 $ Charges for services -refuse and recycling 300,590 Contributions 9.543 Total operating revenues 2,689,094 ,~ 9.543 Operating expenses Purchased services -water 667,950 Purchased services -refuse and recycling 305,166 Personal services 524,651 _ Contractual services 224,785 Supplies 44,380 Heat, light and power 94,643 Repairs and maintenance 129, 814 Depreciation 365.668 Total operating expenses 2.357,057 f Operating income 332.037 ,/ 9.543 Nonoperating revenues (expenses) Interest income 178,110 Interest expense and fiscal charges (71,091) Total nonopeiating revenues (expenses) 107,019 Income before operating transfers 439,056 / 9,543 Operating transfers (out) (260.000) Net income 179,056 9,543 Retained earnings, October 1, 1992 5.300.866 Retained earnings, September 30, 1993 5 479 922 9 543 See notes to financial statements. Totals (Memorandum OnlXl $2,388,504 300,590 9.543 2.698,637 667,950 305,166 524,651 224,785 44,380 94,643 129,814 365.668 2.357.057 341.580 178,110 ~) 107.019 448,599 (260.000) 188,599 5.300.866 5 489 465 ' 27 ' VILLAGE OF TEQUESTA, FLORIDA Statement of Cash Flows - Proprietary Fund Type , For the Fiscal Year Ended September 30, 1993 ' Pro rie P ~' Fund TXpe Enterarise ' Cash flows from operating activities: ' Net operating income $ 332,037 Adjustments to reconcile operating income to net cash provided by operating activities: ' Depreciation 365,668 Changes in assets and liabilities: (Increase) decrease in: ' Accounts receivable (15,342) Due from other funds (562) Increase (decrease) in: , Accounts payable 54,620 Accrued liabilities 8,373 Deposits 8,635 ' Compensated absences 28,260 Due to other funds 2,559 ' Due to other governments 741 Net cash provided by operating activities 784,989 , Cash flows from noncapital financing activities: Operating transfer to other fund (260.000) , Net cash used for noncapital financing activities (260.000) 28 , Cash flows from capital and related financing activities: Capital contributions Acquisition and construction of fixed assets Principal paid on revenue bonds and equipment leases Interest paid on revenue bonds Fiscal charges paid on revenue bonds Net decrease in contracts payable Net cash used for capital and related financing activities Cash flows from investing activities: Proceeds from redemption of investments Interest received on investments Net cash provided by investing activities Net increase in cash and cash equivalents Cash and cash equivalents, October 1, 1992 Cash and cash equivalents, September 30, 1993 See notes to financial statements. 29 Proprietary Fund Type Enterprise $ 103,842 (746, 632) (118,073) (78,752) (2,478) 6( 3.351) (905.444) 463,963 178,110 642.073 261,618 543.060 804 678 VILLAGE OF TEQUFSTA, FLORIDA ' Notes to Financial Statements September 30, 1993 ' NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ' The 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 form of govern- ' ment. The Village's major operations include public safety (police), 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 communicatuig information about the component units and their relationships with the primary government. A component unit is a legally separate organization for which the elected officials of the primary government are financially accountable. Determining factors of financial accountability include appointment of a voting majority, imposition of will, financial benefit or burden on a primary government or fiscal dependency. , In addition, component units can be other organizations for which the nature and significance of their relationship with a primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. ' Based upon application of these criteria, the Village of Tequesta has determined that except for the firefighters' retirement system, there are no additional governmental departments, agencies, ' institutions, commissions, public authorities or other governmental organizations operating within the jurisdiction of the Village that would be required to be included in the general purpose financial statements of the Village. ' 30 ' 1 ' VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements ' September 30, 1993 ' NOTE 1 - SUNIlI7ARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued). ' The Resorting Enti (Continued) Firefighters' Retirement Svstem ' The Village's regular full-time employees who are sworn firefighters are eligible to participate in the Firefighters' Retirement System (FRS). FRS functions for ' the benefit of these employees and is governed by a five member board, of which the Village Council appoints two. The Village and FRS participants are obligated to fund all FRS costs based upon actuarial valuations, with the Village funding ' the difference between member and other contributions and the actuarial cost. Based on these factors, it has been concluded that the FRS is fiscally dependent on the Village of Tequesta, which makes the FRS a component unit of the ' Village. Since the FRS provides services exclusively for the benefit of the Village, the FRS is reported as a blended component unit, specifically as the Firefighters Pension Trust Fund. Bas's o Present do - Fund A untin 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 aze 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" . The following aze the fund categories, funds and account groups used by the Village: ,. ~ 1 VILLAGE OF TEQUESTA, FLORIDA ' Notes to Financial Statements September 30, 1993 , NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of Presentation -Fund Accounting (Continued) , Governmental Fund Tv~es Governmental funds are used to account for all or most of a government's eneral , g 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 Village accumulates all franchise fees, utility taxes, state revenue sharing and occupational licenses as required by the ' Improvement Revenue Bonds, Series 1979. The Debt Service Fund of the Village accumulates monies for payment of the ' Improvement Revenue Bonds, Series 1979. The Capital Projects Fund is 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). , Proprietary Fund TvDe 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. ,z ~ t ' VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1993 ' NOTE 1 - SUNIlVIARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) ' Basis of Presentation -Fund Accounting (Continued) Proprietary Fund Type (Continued) Enterprise Fund (Continued) Because refuse and recycling fees are billed along with the water service charges and the refuse and recycling services are subcontracted which results in minimal administrative costs to the Village, a separate enterprise fund is not considered ' necessary. The proprietary fund is accounted for on a cost of services or "capital main- ' tenance" measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with its activity are included on its balance sheet. The reported fund equity (net total assets) is segregated into ' contributed capital and retained earnings components. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in net total assets. Capital outla s for assets that cost $500 or more and have ex ected lives of Y p 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 33 1 VILLAGE OF TEQUESTA, FLORIDA , Notes to Financial Statements September 30, 1993 ' NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTIN POLICIES (Continued). , Basis of Presentation -Fund Accounting (Continued) ' Fiduciary Fund 7~Des Pension Trust, Expendable Trust and Agency Funds ' Fiduciary funds are used to account for assets held on behalf of outside parties, including other governments, or on behalf of other funds within the government. When these assets aze held under the terms of a formal trust agreement, either a pension trust fund, a nonexpendable trust fund or an expendable trust fund is ' used. The terms "nonexpendable" and "expendable" refer to whether or not the government is under an obligation to maintain the trust principal. Agency funds generally aze used to account for assets that the government holds on behalf of , others as their agents. The Village has one pension trust fund, the Firefighters Pension Trust Fund to , account for its retirement system for firefighters. The Expendable Trust Fund accounts for forfeitures received by the police ' department to be expended for certain law enforcement purposes as prescribed by Florida Statute Chapter 932.704. ' The Agency Fund consists of custodial funds held on behalf of Village employees representing deferred compensation. , Account Groups General Fixed Assets Account Group The accounting and reporting treatment applied to the fixed assets associated with , a fund aze determined by its measurement focus. All governmental funds aze accounted for on a spending or "financial flow" measurement focus. This means that only current assets and current liabilities aze generally included on their ' balance sheets. Their reported fund balances (net current assets) aze considered a measure of "available spendable resources. " Governmental fund operating statements present increases (revenues and other financing sources) and decreases ' 34 ' ~. ' VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1993 NOTE 1 - SUNIlVIARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)- ' Basis of Presentation -Fund Accounting (Continued) Account GrouDS (Continued) ' ex enditures and other financin uses in net current assets. Accordin 1 ( P g ) g Y~ they aze said to present a summary of sources and uses of "available spendable ' resources" during a period. Fixed assets used in governmental fund type operations (general fixed assets) aze accounted for in the General Fixed Assets Account Group, rather than in govern- mental funds. ' Public domain ("infrastructure") general fixed assets consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, ' streets and sidewalks, drainage systems, and light systems, aze not capitalized. The Village capitalizes assets that cost $500 or more and have expected lives of greater than one yeaz. No depreciation has been provided on general fixed ' assets. All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated fixed assets aze valued at their estimated fair mazket value on the date donated. ' General Long-Term Debt Account Group Long-term liabilities expected to be financed from governmental funds aze accounted for in the General Long-Term Debt Group, not in the governmental funds. Because of their spending measurement focus, expenditure recognition for governmental fund types is limited to exclude amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term debt amounts aze not recognized as governmental fund type expenditures or fund liabilities. They aze instead reported as liabilities in the General Long-Term Debt Account Group. The two account groups aze not "funds" . They aze concerned only with the measurement of financial position. They are not involved with measurement of results of operations. 35 ~, J VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1993 NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of Accounting The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and expendable trust funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. All proprietary funds, nonexpendable trust funds and pension trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the balance sheet. Fund equity (i.e., net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund-type operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. The modified accrual basis of accounting is used by all governmental fund types, expendable trust funds and agency funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The Village does not accrue property tax revenues since the collection of these taxes coincides with the fiscal year in which levied, and since the Village consistently has no material uncollected property taxes at year end. A 90 day availability period is used for revenue recognition for all other governmental fund revenues. Expenditures are recorded when the related fund liability is incurred. Principal and interest on general long-term debt are recorded as fund liabilities when due or when amounts have been accumulated in the debt service fund for payments to be made early in the following year. Those revenues susceptible to accrual are franchise taxes, special assessments, licenses, interest revenue, intergovernmental revenues, and charges for services. Sales taxes collected and held by the state at year end on behalf of the Village also are recognized as revenue. Fines and permit revenues are not susceptible to accrual because generally they are not measurable until received in cash. 36 U 1 1 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements t September 30, 1993 NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTIN POLICIES (Continued). ' Basis Qf Accounting (Continued) The accrual basis of accounting is utilized by proprietary fund types, pension trust funds and ' 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 combined balance sheet. Deferred revenues arise when a potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. Deferred revenues also arise when resources are received by ' the government before it has a legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the government has a legal claim to the resources, the liability for ' deferred revenue is removed from the combined balance sheet and revenue is recognized. Total Columns on Combined Statements ' The Total columns on the combined statements are ca tion " p ed Memorandum Only to indicate ' that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Budgets and Budgetary Accounting ' Formal budgetary integration is employed as a management control device during the year for the General Fund, Special Revenue Fund, Debt Service Fund and Capital Projects Fund. The ' Finance Department also maintains control over expenditures of the Debt Service Fund through the use of bond indenture provisions. ' Budgets for the General, Special Revenue, Debt Service and Capital Projects Funds are adopted on a basis consistent with generally accepted accounting principles. For budgeting purposes, current year encumbrances are not treated as expenditures. ' 37 VILLAGE OF TEQUESTA, FLORIDA ' Notes to Financial Statements September 30, 1993 ' NOTE 1 - SUMIVLARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) ' Budgets and Budg~rv Accounting (Continued) ' The Village follows these procedures in establishing the budgetary data reflected in the financial statements: ' 1. Prior to September 1, the Village Manager submits to the Village Council a proposed operating budget for the fiscal year commencing the following , October 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain tax a er comments. ' PY 3. Prior to October 1, the budget is legally enacted through passage of a resolution. ' Changes or amendments to the total budgeted fund expenditures must be approved by the Village Council. Management may make unlimited interfunctional transfers within a fund without ' seeking council approval. However, in order to make the most effective use of the budgetary process, it is the policy of the Village to make as few budget adjustments as possible. ' Appropriations are legally controlled at the fund level and expenditures may not legally exceed budgeted appropnations at that level. During the year three supplemental appropriations were made. ' The Village has complied with the Florida requirement that budgets be in balance. The General , Fund, Special Revenue, Debt Service Fund and Capital Projects Fund budgets reflected in the accompanying financial statements are not balanced because they do not include amounts budgeted from the beginning fund balance. ' A budget for operating expenses of the Enterprise Fund (Water Fund) is also legally adopted on a basis consistent with generally accepted accounting principles in accordance with requirements ' of Ordinance 260-Water Refunding Revenue Bonds, Series 1985. Appropriations lapse at the end of the fiscal year. , ~a ~ ' VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements ' September 30, 1993 ' NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTIN POLICIES (Continued) ' Encumbrances Encumbrance accounting is used for purposes of budgetary control. Encumbrances outstanding ' at year end are reported as reservations of fund balances until expended or accrued as a liability of the fund. ' Investments Investments, consisting of U.S. treasury obligations and funds held with the state investment ' pool aze stated at cost or amortized cost, which approximates market. Assets of the Deferred Compensation Plan are reported at mazket value. ' Inventories Inventories aze valued at cost, which approximates mazket, on a first-in, first-out (FIFO) ' method. Inventories in the General Fund consist of expendable supplies held for consumption. The cost is recorded as an expenditure at the time individual inventory items are purchased. Reported inventories aze equally offset by a fund balance reserve which indicates that they do t not constitute "available spendable resources" even though they aze a component of net current assets. ' Amortization ' The issue costs and debt discount on long-term debt are amortized over the life of the bonds using the straight-line method. ' Ad Valorem Taxes Ad valorem taxes are assessed and liened as of January 1 and billed the following October. ' They aze due and payable on November 1 of each year or as soon thereafter as the assessment roll is certified and delivered to the Tax Collector. These taxes are collected by the County and remitted to the Village. Revenue is recognized at the time monies aze received from the ' County. All unpaid taxes become delinquent on April 1 following the year in which they are assessed. 39 1 VILLAGE OF TEQUESTA, FLORIDA ' Notes to Financial Statements September 30, 1993 ' NOTE 1 - SUNIlVIARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Ad Valorem Taxes (Continued) ' Discounts are allowed for early payment at the rate of 4 % in the month of November, 3 % in the month of December, 2 % in the month of January and 1 % in the month of February. The ' taxes paid in March are without discount. At September 30, unpaid delinquent taxes, if any, are reflected as a receivable on the balance sheet and as deferred revenue. Interfund Transactions ' Following is a description of the basic types of interfund transactions made during the year and ' the related accounting policy: Transactions for services rendered or facilities provided. These transactions are t recorded as revenue in the receiving fund and expenditures in the disbursing fund. Transactions to transfer revenue or contributions from the fund budgeted to ' receive them to the fund budgeted to expend them. These transactions are recorded as operating transfers in and out. Fund Equity Reserves represent those portions of fund equity not appropriable for expenditure or legally , segregated for a specific future use. Designated fund balances represent tentative plans for future use of financial resources. ' The portion of the fund balance reserved for recreation and parks represents the amount of funds received for recreational improvements and park land which are not yet expended. ' Compensated Absences Compensated absences are absences for which employees will be paid, such as vacation and sick leave. A liability for compensated absences that are attributable to services already rendered and that are not contingent on a specific event that it outside the control of the government and its , employees is accrued as employees earn the rights to the benefits. Compensated absences that relate to future services or that are contingent on a specific event that is outside the control of the government and its employees are accounted for in the period in which such services are ' rendered or such events take place. .a ~ ' VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1993 ' NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) ' Compensated Absences (Continued) In the governmental and similar trust funds, compensated absences that are expected to be liquidated with expendable available financial resources are reported as an expenditure and fund liability in the fund that will pay for them. The reminder of the compensated absences liability is reported in the General Long-Term Debt Account Group. ' In the proprietary funds and similar trust funds, compensated absences are recorded as an expense and liability of the fund that will pay for them. I r 'o ' The Financial Accounting Standards Board issued Statements of Financial Accounting Standards (FASB) No. 34 requiring capitalization of interest cost for all assets that are constructed for an enterprise's use. The amount of interest to be capitalized is that portion of the interest incurred ' during the asset's acquisition period which theoretically could have been avoided if expenditures for the asset had not been made. Statement of Cash Flows For purposes of the statement of cash flows, the proprietary fund considers all highly liquid investments (including restricted assets) with a maturity of three months or less when purchased to be cash equivalents, except for those investments which management intends to be long-term investments. NOTE 2 -CASH AND INVESTMENTS as an.~,~ Cash Equivalents At year end, the carrying amount of the Village's deposits was $1,345,036 and the bank balances were $1,814,176. Cash consists of unrestricted and restricted funds entirely covered by federal depository insurance or by a multiple financial institution collateral pool that insures public deposits. The collateral pool exists pursuant to the Florida Security for Deposits Act, Chap- ter 280, which consists of assets pledged to the State Treasurer by financial institutions that comply with the requirements of Florida Statutes and have been thereby designated as a qualified public depository. These deposits are deemed to be insured for risk categorization purposes. 41 1 VILLAGE OF TEQUESTA, FLORIDA ' Notes to Financial Statements September 30, 1993 ' NOTE 2 -CASH AND INVESTMENTS (Continued) 1 Investments ' Florida statutes authorize the Village to invest the Local Government Surplus Funds Trust Fund administered by the State Treasurer; negotiable direct obligations of or obligations ' unconditionally guaranteed by the U.S. Government; interest-bearing time deposits in financial institutions located in Florida and organized under Federal or Florida laws; obligations of the Federal Farm Credit Banks, the Federal Home Loan Mortgage Corporation, the Federal Home , Loan Bank or its district banks, or obligations guaranteed by the Government National Mortgage Association and obligations of the Federal National Mortgage Association. Investments (including restricted investments) consist of funds held with the state investment ' pool, obligations of the United States government and amounts held by the Village's agent in a deferred compensation plan. ' Obligations of the United States government are guaranteed and held by a qualified public depository. The Village is obligated by its Water Refunding Revenue Bond issue, Series 1985, ' to purchase U.S. Treasury Obligations. The treasury bonds are recorded net of unamortized discount of $44,722. The Villa e's Deferred Com ensation lan has funds held b ICMA Retirement Co , g p p y rporation. The plan offers six different portfolios of mutual funds. 1 The Village's investments are categorized as either (1) insured or registered or for which the securities are held by the Village or its agent in the Village's name, (2) uninsured and ' unregistered for which the securities are held by the financial institution's trust department or agent in the Village's name, or (3) uninsured and unregistered for which the securities are held by the broker or dealer, or by its safekeeping department or agent but not in the Village's name. ' a. ~ 1 1 1 1 1 1 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1993 NOTE 2 -CASH AND INVESTMENTS (Continued) Investments (Continued) CategorX Carrying Market 1 Amount Value Obligations of United States government 860 278 $ 860,278 $1,023,220 Investment in: State investment pool 3,540,831 3,540,831 Deferred compensation mutual fund 182.196 182.196 4 583 305 4 746 247 N TE 3 -RESTRICTED ASSETS Restricted assets as of September 30, 1993 consist of the following accounts: Cash Investments Total Meter Deposit Accounts $ 52,787 $ 142,800 $ 195,587 Capital Improvement Accounts 51,202 460,009 511,211 Bond Accounts: Sinking Account 2,152 2,900 5,052 Bond Amortization Account 444,157 860,493 1,304,650 Reserve Account 20,006 252,016 272,022 Renewal and Replace- ment Account 48 42 4 42 618646 1718218 2336864 43 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1993 NOTE 4 -ACCOUNTS RECEIVABLE -ENTERPRISE FUND Accounts receivable of $241,736 are stated net of a $2,000 allowance for doubtful accounts and consist of billed revenues totaling $211,836 and unbilled revenues totaling $31,900. NOTE 5 -COMPONENTS OF FIXED ASSETS A summary of changes in general fixed assets follows: Balance Balance October 1, September 30, 1992 A di i n Deletions .1993 Land $ 234,728 $ $ $ 234,728 Buildings 294,333 294,333 Improvements other than buildings 140,282 120,739 261,021 Equipment 03 18 528.739 6 321 1.095.936 1 272 861 649 478 36 321 1 886 O1 The components of fixed assets at September 30, 1993 are summarized as follows: General Enterprise Fixed Assets Fund Account Group Total Land $ 83,336 $ 234,728 $ 318,064 Buildings 388,592 294,333 682,925 Improvements other than buildings 7,865,724 261,021 8,126,745 Machinery and equipment 308,397 1,095,936 1,404,333 Construction in progress 58 16 580.160 9,226,209 1,886,018 11,112,227 Accumulated depreciation 645 477 3,645.477 Total 5 580 732 1 886 018 7 466 750 44 1 1 1 1 1 1 ' VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1993 ' NOTE 6 -CAPITALIZED INTEREST/INTEREST EXPENSE ' For the year ended September 30, 1993, the Village capitalized $25,736 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, 1993 was $96,827. NOTE 7 -DEFINED BENEFIT PENSION PLAN 1 All Village full-time employees, except fireman who are eligible to participate in the Firefighters Retirement System, participate in the noncontributory Florida Retirement System, acost-sharing multiple-employer public employee retirement system. The payroll for employees covered by the System for the year ended September 30, 1993 was $1,538,952. The Village's total payroll was $1,595,696. 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 consisting of administrative, operations and clerical employees, and the special risk class (SRC) consisting of law enforcement officers. Employees who retire at or after age 62 (age 55 for SRC members) with ten years of credited service are entitled to a retirement benefit, payable monthly for life, equal to 2.0 (SMSC), 1.60 to 1.68% (regular class) and 2.02 to 3.0% (SRC) of their average final compen- sation for each year of credited service, depending on the years served. Average final compensation is the employee's average of the five highest years of credited service, depending on the years served. Benefits fully vest on reaching ten years of service (seven years for SMSC members). Vested employees may retire at or after age 55 and receive reduced retirement benefits. The System also provides death and disability benefits. Benefits are established by State statute. 45 VILLAGE OF TEQUESTA, FLORIDA , Notes to Financial Statements September 30, 1993 N9TE 7 -DEFINED BENEFIT PENSION PLAN (Continued) The Village's actuarially determined contribution requirement for the year ended September 30, ' 1993 was $318,985. The actual contribution made was $318,985 (General Fund $261,239, Enterprise Fund $57,746). The contribution equaled 20.73 % of current covered payroll. The Village is required by statute to contribute at rates as of September 30, 1993 of 21.03 % of , covered payroll for senior management service class, 17.75 % of covered payroll for regular class and 27.62 % for special risk class. Because this is anon-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, 1992 (the latest available ' information) for the System as a whole, determined through an actuarial valuation performed as of July 1, 1992, was $37.9 billion. The System's net assets available for benefits on that date (valued at market) were $28.5 billion, leaving an unfunded pension benefit obligation of ' $9.1 billion. The Village's actuarially determined contribution requirement represents less than one percent of all contributions. ' Ten-year histoncal trend information showing the System's progress in accumulating sufficient assets to pay benefits when due is presented in the System's June 30, 1992 comprehensive annual ' financial report. NOTE 8 -FIREFIGHTERS' RETIItEMENT SYSTEM ' The Village established the Firefighters' Retirement System, asingle-employer defined benefit , pension plan, in accordance with Florida Statutes, Chapter 175. The plan is mandatory for all full-time firefighters and is included in the financial statements as a pension trust fund. The plan was established on September 7, 1993. As of that date both employer and employee ' contributions were required. The Village made both the employer and employee contributions for the period from Apri129, 1993 (when firefighters started employment) to September 7, 1993. ' As of September 30, 1993 the actuarial valuation had not been completed; therefore, data on the pension benefit obligation and trend information are not available. 46 ' ' VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1993 ' NOTE 8 -FIREFIGHTERS' RETIREMENT SYSTEM (Continued) PLAN DESCRIPTION AND PROVISIONS ' The followin descri tion of the retirement lan is rovided for eneral informa g P p p g tion purpose 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, 1993 was $52,129, the Village's total payroll was $1,595,696. As of ' September 30, 1993, 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 5 % per year. Disability benefits can be received for total and permanent disabilities as determined by the Board of Trustees. If the pension is granted, the benefit amount shall be: ' If the injury or disease is service connected, the firefighter shall be entitled to the greater of (a) or (b): (a) A monthly pension equal to 42 % of his average compensation based upon his final five years of service, or (b) An amount equal to the number of years of his credited service multiplied by 3 % of his average monthly salary based upon his final five years of ' service. 47 VILLAGE OF TEQUESTA, FLORIDA ' Notes to Financial Statements September 30, 1993 ' NOTE 8 -FIREFIGHTERS' RETIREMENT SYSTEM (Continued) PLAN DESCRIPTION AND PROVISIONS (Continued) ' If the injury or disease is ngl service connected, the firefighter shall be entitled to the greater of (a) or (b): ' (a) A monthly pension equal to 25 % of his average compensation based upon his final five years of service, or , (b) An amount equal to the number of years of his credited service multiplied by 3 % of his average monthly salary based upon his final five years of service. ' If the firefighter dies prior to retirement from the fire department, his beneficiary shall receive the following benefit: ' (a) Line-of-Duty-Death-Benefit is a pension to the spouse (or children) of 50 of Average Compensation for life or remarriage. ' (b) Non-Line-of-Duty-Death, the spouse of a member with ten years of credited service will receive the actuarial equivalent of the accrued early or normal , retirement benefit. If the firefighter dies or terminates employment with less than ten years of credited service, he ' is entitled to a refund of the money contributed. "Average final compensation" means one-twelfth of the average salary of the five best years of ' the last ten years of credited service prior to termination, retirement or death of the firefighter. "Credited service" is a firefighter's period of employment as firefighter in the fire department , measured in years and parts of years. Firefighters are required to contribute 5 % of their compensation to the plan. The state makes ' a contribution from the Fire Insurance Premium Tax. The Village is required to contribute the remaining amount to fund the plan using the actuarial cost method 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. .s ~ 1 1 1 1 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1993 NOTE 8 -FIREFIGHTERS' RETIREMENT SYSTEM (Continued) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PLAN ASSET MATTERS Basis of Accountin The retirement system is reported on the accrual basis of accounting. Employee, employer and state contributions aze recognized as revenues in the period in which employee services aze performed. Method Used to Yadue Assets Plan assets are reported at cost, subject to adjustment for mazket declines judged to be other than temporary. Gains and losses from sales and exchanges of plan assets aze recognized on the transaction date. CONTRIBUTIONS REQUIRED AND CONTRIBUTIONS MADE As the actuarial report has not been completed, the Village contributed 14.4 % of covered payroll as recommended by the plan's actuary. The following contributions were made for the year ended September 30, 1993. Contribution Percentage of Contributor Made Covered Payroll Employer $ 7,514 14.4% Employer for employees 1,603 3.1 Employee 426 ~ Total 9 543 18.3 49 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1993 ' NOTE 9 -DEFERRED COMPEN ATION 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. ' 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 liabili for losses under the lan but does have the t tY P 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 - COMPEN ATED ANNUAL LEAVE AND SICK PAY ' As of September 30, 1993, the total liability for compensated absences was $326,698. The , noncurrent portion of compensated absence liability of the General Fund is recorded in the Long-Term Debt Group. For the fiscal year ended September 30, 1993, the long-term amount was $279,472. The liability recorded by the Enterprise Fund was $47,226. ,o ~ 1 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1993 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. 1 1 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. NOTE 12 -LEASE COMMITMENTS During the fiscal year, the Village had the following capital lease agreements: General Fund Office equipment Monthly payment: $567 36 month term Expires May, 1994 Capitalized cost $18,087 (General Fixed Asset Account Group) Fire Truck Annual Payment: $56,658 10 year term Expires October, 2003 Principal amount: $473,000 Capitalized cost -not yet received $110,000 down payment, $346,140 due (General Fixed Asset Account Group) Enterprise Fund Office equipment Monthly payment: $178 36 month term Expires June, 1994 Purchase option - $825 Computer system Monthly payment: $692 60 month term Expires October, 1996 51 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1993 NOTE 12 -LEASE CONIlVIITMENTS (Continued) Capitalized costs and accumulated amortization of the enterprise fund leases are as follows: Cost $90,181 Accumulated amortization 112 60 06 Amortization expense of $20,315 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, 1993: Fiscal Year General Ending Long-Term Enterprise September 30. Debt F n 1994 $ 62,326 $ 9,902 1995 56,658 8,299 1996 56,658 8,299 1997 56,658 803 1998 56,658 Thereafter 339.948 Total minimum lease payments 628,906 27,303 Less: amount representing interest 15 43 14 Present value of future minimum lease payments 478 470 24 155 52 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 ' VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements ' September 30, 1993 ' 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. NOTE 14 -CONTRACTED - SERVICES FIRE PROTECTION/EMERGENCY ' MEDICAL SERVICE On August 15, 1984, the Village entered into an interlocal agreement between Palm Beach ' County and various other municipalities for services to be rendered by the Palm Beach County Fire Rescue Department to said municipalities for a fee. For the year ended September 30, 1993 fire protection and emergency medical service expense was $797,410. This agreement was ' cancelled effective October 1, 1993 as the Village established its own fire department. 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, 1993, no ' payments were made or received under these agreements. ' NOTE 15 -LONGTERM DEBT Water Fund ' Water Refunding Revenue Bonds, Series 1985 were issued pursuant to Resolution 2-84/85 enacted by the Village Council on October 23, 1984, for a total principal amount of $1,525,000. ' Resolution 2-84/85 provides for the disposition of all revenues derived from the operation of the water system. Revenues are first to be used for payment of all current operating expenses. ' Revenues are next to be used for the required payments for principal and interest on, and reserve for, the outstanding water refunding revenue bonds. ' S3 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1993 ' ' NOTE 15 -LONGTERM DEBT (Continued Water Fund (Continued) t 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 _ Purpose ' Revenue Account To collect the entire gross revenues derived from the system, except investment earnings. ' Operation and To pay fully accrued operating expenses. Maintenance Account ' Sinking Account To accumulate sufficient funds to meet annual debt service requirements through transfers from the Revenue Account. ' Bond Amortization Established within the Sinking Account to meet principal payment on Account 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 54 ' ' VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1993 NOTE 15 -LONGTERM DEBT (Continued) Water Fund (Continued) The annual requirements to amortize the debt are as follows: Fiscal Year Ending September 30 Principal Interest Total 1 1994 $ 130,000 $ 35 965 $ 165,965 1995 275,000 55,142 330,142 ' 1996 300,000 30,593 330,593 1997 120.000 5.340 125 4 ' 825 000 127 040 952 04 ' 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 pace 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. ' Required Annual Bond Amortization Account payments to the Trustee of the 85 Series Bonds are as follows: ' Fiscal Year Ending September 30 Amount ' 1994 75 000 Debt issue expense and bond discount on the Water Refunding Revenue Bonds, Series 1985, are ' being amortized over the life of the bonds. it ' S5 VILLAGE OF TEQUESTA, FLORIDA ' Notes to Financial Statements September 30, 1993 t ' NOTE 15 -LONGTERM DEBT (Continued) General Long-Term Debt This debt consists of Improvement Revenue Bonds Series 1979, dated October 1, 1979 in the , amount of $910,000 with interest rates ranging from 8.30% to 8.50%. 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. At September 30, 1993, $580,000 of this issue, which consists of term and serial bonds, were outstanding. The disposition of monies in the Revenue Fund are first to the Debt Service Fund ' in the amount of the required principal and interest payments. A reserve account was established in the Debt Service Fund to provide for the maximum debt service requirement in any fiscal year. This account is fully funded as of September 30, 1993. Finally, any revenues ' remaining may be used for any lawful purpose. The bonds will be repaid through the Debt Service Fund. ' Annual requirements to amortize this debt are as follows: Coupon ' October 1. Rate Princ~al Interes Payments 1994 8.40% $ 40,000 $ 48,720 $ 88,720 1995 8.40% 40,000 45,360 85,360 1996 8.40 % 45,000 42,000 87,000 1997 8.40% 45,000 38,220 83,220 1998 8.40 % 50,000 34,440 84,440 1999 8.40 % 55,000 30,240 85,240 , 2000 8.40 % 55,000 25,620 80,620 2001 8.40 % 60,000 21,000 81,000 2002 8.40 % 65,000 15,960 80,960 ' 2003 8.40 % 70,000 10,500 80,500 2004 8.40% 55.000 4,620 5 620 , Totals 580 000 316 680 896 680 56 ' 1 1 1 1 1 1 1 1 1 1 1 1 1 1 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1993 N9TE 15 -LONGTERM DEBT (Continued) Total Lone-Term Debt The annual requirements to amortize all outstanding debt including interest payments of $597,304 as of September 30, 1993 are as follows: Fiscal Capital Year Ending Compensated Lease Water Improvement September 30 Absences Obli ations Revenue Revenue Total 1994 $ $ 72,228 $ 165,965 $ 88,720 $ 326,913 1995 64,957 330,142 85,360 480,459 1996 64,957 330,593 87,000 482,550 1997 57,461 125,340 83,220 266,021 1998 56,658 84,440 141,098 1999 56,658 85,240 141,898 2000 56, 658 80, 620 137,278 2001 56,658 81,000 137,658 2002 56, 658 80, 960 137, 618 2003 56,658 80,500 137,158 2004 56,658 59,620 116,278 Various 279.472 27 472 279 472 656 209 952 040 896 680 2 784 401 Annual maturities of long-term compensated absences cannot be reasonably determined 57 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1993 NOTE 15 -LONGTERM DEBT (Continued) Changes in Long-Term Debt Transactions for the Village for the year ended September 30, 1993 are summarized as follows: General Long-Term Deb t Group Enterpris e Fund Capital Improvement Water Capital Compensated Lease Revenue Revenue Lease Absences Obli ations Bonds Bons Obligations Long-term debt at October 1, 1992 $221,498 $ 11,566 $615,000 Plus: Addition of new lease 473,000 Addition to compensated absences 57,974 Less: repay- ments of debt 6.096 35.000 Long-term debt at September 30, 1993 279 472 478 470 580 000 NOTE 16 - DEFEASANCE OF PRIOR DEBT $ 935,000 $32,228 110.000 8.073 825 24 155 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, 1993, $3,915,000 of bonds outstanding are considered defeased. 58 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 VILLAGE OF TEQUESTA, FLORIDA Notes to Financial Statements September 30, 1993 NOTE 17 - INTERFUND RECEIVABLES AND PAYABLES Individual fund interfund receivables and payables at September 30, 1993 are as follows: Interfund Interfund Fund Receivables P ale General Fund $ $ g, 640 Special Revenue Fund 18,829 16,270 Expendable Trust Fund 750 Pension Trust Fund 7, 890 Enterprise Fund 16.270 18.829 43 739 43 739 NOTE 18 - INTERFiJND ADMINISTRATIVE FEE During the year ended September 30, 1993, the Enterprise Fund remitted $121,900 to the General Fund for administrative management fees. This amount is reflected as intra- governmental services revenue in the General Fund and as contractual services operating expenses in the Enterprise Fund. NOTE 19 -CONTRIBUTED CAPITAL -ENTERPRISE FUND The changes in contributed capital consists of the following: Capital Developer Improvement Contributions Charges Total Contributed capital at October 1, 1992 $1,059,387 $1,891,906 $2,951,293 Plus: contributions 103.842 103.842 Contributed capital at September 30, 1993 1 059 387 1 995 748 3 055 135 59 VILLAGE OF TEQUESTA, FLORIDA ' Notes to Financial Statements September 30, 1993 ' , NOTE 20 -RESTATEMENT OF FUND BALANCES Beginning fund balances were restated in the General and Expendable Trust Funds by $750 to ' correct for an understatement in fund balance that occurred when the Expendable Trust Fund was first created. General Expendable Fund Trust Fund Balance October 1, 1992 $1,239,136 $ 1,175 Adjustment (750) 750 ' Restated balance 1 238 386 1 925 NOTE 21 -LITIGATION The Village is involved in right-of--way property acquisitions for well sites. Negotiations with ' the owners are pending as of September 30, 1993. The appraised values of the properties involved total $20,400. If the Village cannot obtain title through voluntary conveyances, the , property must be acquired through the power of eminent domain which would require the pay- ment of reasonable attorney fees and costs incurred by property owners. The final settlement of these acquisitions are unknown. , The Village, in accordance with the normal conduct of its affairs, is involved in various other judgments, claims and litigations. It is expected that the final settlement of these matters will ' not materially affect the financial statements of the Village. 60 ' 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, 1993 Variance - Favorable Bud eg t _ Actual (LTnfavorable~ Taxes Current ad valorem taxes $1,970,200 $1,958,191 $ (12,009) Delinquent ad valorem taxes 1.500 7,029 5.529 Total taxes 1,971.700 1,965.220 (6,480) Licenses and permits Building permits 105,000 101,958 (3,042) Other licenses and permits 6.830 10.869 4.039 Total licenses and permits 111,830 112.827 997 Intergovernmental Cigarette tax 12, 800 14,241 1, 441 Alcoholic beverage licenses 7,000 4,021 (2,979) One-half cent sales tax 208,000 234,444 26,444 County grants 4,320 2,984 (1,336) Countywide registrations 27,000 30,561 3,561 Local option gas tax 107,000 111,635 4,635 Recycling reimbursables 5.000 4 4 X406) Total intergovernmental 371 120 402.480 31,360 Charges for services Zoning fees 11,200 8,775 (2,425) Map sales 450 252 (198) Certification, copying, record search 850 1,261 411 Building inspection 8,000 6,618 (1,382) Municipal police academy 2,000 2,462 462 Tennis lights 2,000 1,103 (897) Extra duty -contracted services 6.000 833 5 1 Total charges for services 30.500 21 4 (9,196) (Continued) 61 ' VILLAGE OF TE UESTA FLORIDA Q General Fund Schedule of Revenues -Budget and Actual ' For the Fiscal Year Ended September 30, 1993 (Continued) ' Variance - ' Favorable Budget Actual (Unfavorable) Fines and forfeits Court fines $ 30,000 $ 38,446 $ 8,446 Parking tickets 1,000 815 (185) ' Code enforcement 3 75 225 (3.525) Total f nes d f f it ' i an or e s 34 7 9 48 4 7 Interest ' Tax collector 2,020 5,209 3,189 Investments 50.000 50.150 150 T l i ' ota nterest 52.020 55.359 3.339 Miscellaneous ' Contributions for park land Contributions for planned events Other 20,250 14,792 (5,458) ' Police department 1.000 323 (6?7) Total miscellaneous 21.250 15.115 (6.135) ' Intragovernmental services Administrative management -water fund 121.900 121.900 ' Total intragovernmental services 121.900 121,E Total revenues 2 715 070 2 733 691 18 621 62 ' 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, 1993 Variance - Favorable Budget Actual ~Unfavorable~ General government Legislative Travel and per diem $ 14, 000 $ 12,152 $ 1, 848 Other charges 500 1,041 (541) Books, publications and dues 4,980 3.172 1.808 Total legislative 19.480 16.365 11 Executive Salaries 108,000 107, 369 631 F.I. C.A. 8,340 8,338 2 Retirement 20, 825 20,009 816 Life and health insurance 20,530 18,060 2,470 Worker's compensation insurance 800 490 310 Professional services 18,735 18,720 15 Contractual services 3,890 2,957 933 Deferred compensation plan 3,450 3,302 148 Travel and per diem 8,900 7,035 1,865 Office machines maintenance 510 507 3 Other charges 2,095 885 1,210 Office supplies 2,775 1,451 1,324 Rentals and leases 1,600 1,490 110 Books, publications, dues 1,320 1,066 254 Capital outlay Machinery and equipment 3.240 3=200 _~ Total executive 205.010 194 7 10.131 (Continued) 63 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Depart mental Expenditures -B udget and Actual ' For the Fiscal Year Ended September 30, 1993 (Continued) ' Variance - Budget Actual Favorable Unfavorable) , General government (continued) Financial and administrative , Salaries $ 105,900 $ 108,860 $ (2,960) F.LC.A• 8,355 8,350 5 Retirement 18,715 18,585 130 ' Life and health insurance 15,900 13,272 2,628 Worker's compensation insurance 740 478 262 Professional services 2,500 2,393 107 , Accounting and auditing 19,325 19,309 16 Travel and per diem 1,750 393 1,357 Other charges 1,175 755 420 ' Office supplies 4,500 3,953 547 Books, publications, dues 450 327 123 Office machines maintenance 4.855 4 54 1 ' Total financial and administrative 184,165 1 1 2 2.636 t Legal counsel L l i , ega serv ces 42 411 14 -Total legal counsel 5 42 411 14 ' Planning and zoning ' Professional services 17,800 17,002 798 Other charges 3.000 462 2,538 ' Total planning and zoning 2 ~~ 17 4 ~ ~~ (Continued) , 64 ' VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures -Budget and Actual For the Fiscal Year Ended September 30, 1993 (Continued) Variance - Favorable Budge` Actual (Unfavorable) General government (continued) Other general government Life and health insurance $ 8,350 $ 8,124 $ 226 Other personal services 9,200 8,488 712 FICA taxes 345 281 64 Compensated absences 44,300 44,300 Professional services 9,000 8, 926 74 Travel and per diem 650 87 563 Communication services 4,400 4,395 5 Transportation/postage 6,200 5, 871 329 Utility services 6,000 5,823 177 Fire hydrant rental fees 13,300 13,300 Rentals and leases 7,595 7,591 4 Insurance/claims and judgments 25,250 25,244 6 Village Hall maintenance 11,100 11,090 10 Printing and binding 500 493 7 Promotional activities 18,155 13,003 5,152 Other charges 4,815 4,185 630 Office supplies 4,475 4,450 25 Books, publications, dues 1,000 486 514 Capital outlay Machinery and equipment 678,215 22 064 1 1 Total other general government 852.850 443,901 4 8 49 Total general government 1,367.730 939.549 42 1 1 (Continued) 65 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures -Budget and Actual For the Fiscal Year Ended September 30, 1993 (Continued) Public safety Budget Actu Police department Salaries Overtime F.LC.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 Capital outlay Machinery and equipment $ 628,810 52, 600 54,475 178,000 96,275 36,700 2,860 6, 630 450 19,450 28,485 1,450 15,800 9,475 2,850 39,745 1,890 66.055 1,242,000 $ 625,805 51,507 54,340 172,167 87, 971 33,584 1,254 5,707 418 16,045 22,490 554 9,967 4,819 2,429 33,855 1,251 Total police department 62.014 1 18 177 r Variance - Favorable ~LTnfavorable) $ 3,005 1,093 ' 135 5,833 8,304 ' 3,116 1,606 923 ' 32 3,405 5,995 ' 896 5,833 4,656 ' 421 5,890 639 4 41 55.823 (Continued) 66 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, 1993 (Continued) Variance - Favorable Budget Ac u (Unfavorable) Public safety (continued) Protective inspections Salaries $ 111,075 $ 110,885 $ 190 F.I.C.A. 9,975 9,051 924 Retirement 19,175 18, 838 337 Life and health insurance 13,375 12,361 1,014 Worker's compensation insurance 5,060 4,865 195 Contractor services 6,240 4,524 1,715 Travel and per diem 4,350 3,888 463 Communication services 2,360 2,246 114 Insurance 1,900 754 1,146 Repairs and maintenance 1,300 910 390 Printing and binding 1,200 519 681 Other charges 1,380 538 842 Office supplies 1,895 878 1,017 Operating supplies 1,940 1,609 331 Books, publications, dues 600 510 90 Capital outlay Machinery and equipment 3.700 2,244 1.456 Total protective inspections 1 5 2 174 2 10.905 Emergency and disaster relief Civil preparedness 1,250 1,104 146 Disaster relief 5.000 5.000 Total emergency and disaster relief 6.250 1,104 146 (Continued) 67 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures -Budget and Actual For the Fiscal Year Ended September 30, 1993 (Continued) Bud~e~ Act Public safety (continued) Fire protection and emergency medical service Contractual services $ 797,410 797 41 Total fire protection and emergency medical service 797 41 7 7 41 Fire and rescue services Salaries 56,750 56,744 F.I.C.A. 4,025 4,002 Retirement 9,125 9,117 Life and health insurance 10,745 6,040 Professional fees 1,000 Volunteer fire and rescue 1,300 1,300 Travel and per diem 680 653 Communication services 2,275 2,255 Utility services 875 169 Repairs and maintenance 4,600 4,547 Insurance 500 722 Printing 1,250 1,187 Other charges 7,000 6,989 Office supplies 2,000 1,988 Operating supplies 54,580 53,746 Books, publications, dues 2,505 2,480 68 Variance - Favorable ' Unfavorable) ~_ ' 6 ' 23 8 ' 4,705 1,000 27 ' 20 ' 706 53 (222) 63 11 12 ' 834 25 1 (Continued) 1 1 1 1 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departmental Expenditures -Budget and Actual For the Fiscal Year Ended September 30, 1993 (Continued) Variance - Favorable Budget Actual (Unfavorable) Public safety (continued) Fire and rescue services (continued) Capital outlay Machinery and equipment $ 163,150 $ 158,972 $ 4,178 Building renovations 72 1 7 1 4 146 Total fire and rescue services 394.545 7 242 7.303 Total public safety 2,625,730 2.546.553 7 177 ' Physical environment Uniforms and equipment 5.000 4 4 406 Total physical environment 5,000 4 94 406 Transportation Road and street facilities Salaries 133,300 133,102 198 F.I.C.A. 10,275 10,257 18 Retirement 22,500 22,463 37 Life and health insurance 24,500 24,238 262 Worker's compensation insurance 7,450 6,810 640 Engineering services 54,500 54,468 32 Other contractual services 56,000 55,742 258 Travel and per diem 2,700 2,670 30 Communication services 1,475 1,473 2 (Continued) 69 1 VILLAGE OF TEQUESTA, FLORIDA General Fund Schedule of Departm ental Expenditures -Budget and Actual ' For the Fiscal Year Ended September 30, 1993 (Continued) ' Variance - Favorable t Budget Ac (Unfavorable) Trans ortati n ( ti d ' p o con nue ) Road and street facilities ' (continued) Rentals and leases $ 1,425 $ 1,059 $ 366 ' Utility services 43,500 43,300 200 Insurance 9,500 8,952 548 Repairs and maintenance 43,625 42,118 1,507 ' Other charges 1,000 711 289 Operating supplies 6,300 5,388 912 Road materials and supplies 5,625 4,989 636 ' Books, publications, dues 300 70 230 Capital outlay Machinery and equipment 10,000 10,000 t Improvements other than buildings - streetscape 11.500 11 1 40 , Total transportation 445 47 ~ 42 1 8.9 0 1 ~~ Human services ' Health -mosquito control ' Salaries 1,200 75 1,125 Equipment maintenance 225 14 211 Other charges 50 50 Operating supplies 4,050 4,050 Personnel training 525 502 2~ , Total human services 6.050 591 5 45~ (Continued) ' 70 ' 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, 1993 (Continued) 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 Operating supplies Books, publications, dues Aid to community organizations Aid to government organizations Programs Capital outlay Machinery and equipment Playground pazk equipment Total culture/recreation Total expenditures Variance - Favorable Budget Actual (ITnfavorable~ $ 59,000 $ 57,888 $ 1,112 4,200 4,158 42 9,500 9,177 323 3,800 3,332 468 2,475 1,662 813 4,900 4,000 900 1,400 1,277 123 400 374 26 10,000 9,119 881 2,250 2,233 17 18, 800 18, 372 428 500 98 402 100 20 80 900 587 313 275 105 170 8,500 8,500 5,620 5,144 476 11,030 11,027 3 2.000 1.800 ~2 ,Q 145.650 138.873 7 7 4 595 635 4 059 070 536 565 71 1 THIS PAGE INTENTIONALLY LEFT BLANK 1 VILLAGE OF TEQUESTA, FLORIDA Special Revenue Fund Schedule of Revenues -Budget and Actual ' For the Fiscal Year Ended September 30, 1993 Variance Favorable Budget Actual (Unfavorable) T axes Franchise fees $ 295,000 $ 277,636 $ (17,364) t Utility taxes 406,000 42 2 2 17 2 2 Total taxes 701.000 700,928 (72) ' Licenses and permits ' Professional and occupational licenses 72 00 ~~ 7 ~~ 3.650 Total licenses and permits 72~ 000 75 6 3, 650 ' Intergovernmental State revenue sharing 120'000 129 21 9.216 Total intergovernmental 12 129 21 21 ' Total revenues 893 000 905 794 12 794 ' 72 , PROPRIETARY FUND (ENTERPRISE FUND) VILLAGE OF TEQUESTA, FLORIDA Enterprise Fund Schedule of Operating Expenses -Budget and Actual For the Fiscal Year Ended September 30, 1993 Variance - Favorable Budget Actual Unfavorable) Purchased services Purchased water $ 717,000 $ 667,950 $ 49,050 Refuse and recycling service 1 145 OS 1 4.979 Total purchased services 1, 027.145 973.116 54.029 Personal services Salaries 334,635 362,350 (27,715) Overtime 13,465 8,394 5,071 F.I.C.A. 26,750 26,506 244 Retirement 60,780 57,746 034 3 Life and health insurance 67,630 57,957 , 9,673 Worker's compensation insurance 14,230 10,127 4,103 Employee recognition program 900 789 111 Employee assistance programs 1 5 782 71 g Total personal services 519.890 24 51 4 7 1 Contractual services Insurance 32,455 29,271 3,184 Personnel services 9,000 8,031 969 Communication services 5,495 5,408 87 Rentals and leases 6,660 3,458 3,202 Computer program services 6,000 3,317 2,683 Legal g En ineerin 25'000 10'466 14'604 53 ' Accounting and auditing 21;000 20;758 242 Other charges Licenses and fees 12,600 1,750 10,478 1,750 2,122 Administrative management 121,900 121,900 Personnel training and travel 6.600 4 7 2 4 Total contractual services 258.460 224.785 33.675 Su lies Office su lies 6 725 pp Chemicals , 35,000 4,699 26,525 2,026 8,475 Other operating, supplies 14, 625 12,451 2,174 Books, publications and dues 2.000 705 1 L295 Total supplies 58.350 44 13,970 Heat, light and power 971200 94 64 2.557 Repairs and maintenance 143.025 129.814 1 211 Depreciation Total operating expenses 2 104 070 2 357 057 252 98 73 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, 1993 and 1992 Operating revenues Water system Refuse and recycling Charges for services Operating expenses Purchased services Personal services Contractual services Supplies Heat, light and power Repairs and maintenance Depreciation Total operating expenses Operating income Nonoperating revenues (expenses) Interest income Interest expense and fiscal charges Loss on disposal of equipment Gain on sale of land Total nonoperating revenues Income before operating transfer Operating transfers (out) Net income 74 1993 1992 $2,388,504 $2,141,844 300.590 287, 677 2.689,094 2.429.521 973,116 784,205 524,651 464,274 224,785 261,962 44,380 54,612 94,643 98,568 129,814 116,569 365.668 21 2.357.057 2.102,073 332.037 27 44 178,110 (71,091) 107.019 439,056 2~~) 179 056 207, 702 (102,415) (683) 148 253,294 580,742 X210,650) 370 092 VILLAGE OF TEQUESTA, FLORIDA Enterprise Fund Schedule of Restricted Accounts Under Revenue Bond Ordinance For the Fiscal Year Ended September 30, 1993 Sinking Account Balance, October 1, 1992 Cash and investments $ 4,573 Unamortized discount on investments Total 4 7 Increases Transfers from unrestricted accounts 190,000 Investment earnings 1.823 Total 1 1 2 Decreases Capital outlay Transfers to unrestricted accounts Payments for debt service 191 44 Total 191 44 Balance, September 30, 1993 Cash and investments 5,052 Unamortized discount on investments Total 5 052 75 1 Bond Renewal and Amortization Reserve Replacement Account Account Account $1,126,113 $310,170 $ (270) X38.877) 1.087.236 310.170 27 145,000 110,000 72,414 10,342 217,414 10,342 110.000 48,490 61,388 48 49 61.388 1,349,372 X44,722) 1 304 650 272 022 48 342 76 VILLAGE OF TEQUESTA, FLORIDA Amortization Schedule $1,525,000 Water Refunding Revenue Bonds -Series 1985 September 30, 1993 The debt was incurred on January 1, 1985, through the issuance of $1,525,000 water refunding revenue bonds. The proceeds were used to refund a portion of the outstanding Series 1978 water refunding revenue bonds. The bonds are secured by the net revenues of the Water Fund. On September 30, 1993, the outstanding bonds totaled $825,000; the payment schedule follows: Due Date Principal Interest To 1994 April 1 $ 130,000 $ 35,965 $ 165,965 1994 October 1 135,000 30,440 165,440 1995 April 1 140,000 24,702 164,702 1995 October 1 150,000 18,578 168,578 1996 April 1 150,000 12,015 162,015 1996 October 1 120.000 5.340 125.340 Totals 825 000 127 040 952 040 77 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 VILLAGE OF TEQUESTA, FLORIDA Combining Balance Sheet -Fiduciary Fund Types September 30, 1993 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 Agency Fun Totals $ 1,766 $ 1,653 $ $ 3,419 182,196 182,196 750 7.890 8.640 2 516 9 543 182 196 194 255 ~ ~_ 182 19 1 2 19 1 219 1 21 2,516 2.516 9.543 9.543 2,516 9.543 12.059 2 516 9 543 182 196 194 255 78 1 1 1 1 1 1 1 1 1 1 1 1 VILLAGE OF TEQUESTA, FLORIDA Statement of Changes in Assets and Liabilities - Agency Fund For Fiscal Year Ended September 30, 1993 Deferred Balance Balance Compensation October 1, September 30, Fund 1992 Additions Deductions 1993 Assets Investments 139 390 44 80 2 00 182 196 Liabilities Deferred compensation payable 139 390 44 806 2 0 182 19 79 VILLAGE OF TEQUESTA, FLORIDA Schedule of General Fixed Assets by Source September 30, 1993 General fixed assets Land $ 234,728 Buildings 294 333 Improvements other than buildings 261,021 Equipment 1,095,936 Total general fixed assets 1 886 018 Investment in general fixed assets General Fund revenue $1, 886.018 Total investment in general fixed assets 1 886 018 80 General government Public safety Transportation Human services Culture/recreation Total general fixed assets Allocated to functions Prior year data which cannot be allocated Total general fixed assets VILLAGE OF TEQUESTA, FLORIDA Schedule of General Fixed Assets By Function September 30, 1993 Buildings and Total Land Improvements ui ment $ 563,002 $185,000 $258,818 $ 119,184 876,852 90,511 786,341 142,245 7,713 134,532 6,020 6,020 183.255 49.728 83,668 49,859 1,771,374 234,728 440,710 1,095,936 114.644 1 886 018 234 788 114,644 555 354 1 095 936 81 General government Public safety Transportation Human services Culture/recreation Prior to allocation by function VILLAGE OF TEQUESTA, FLORIDA Schedule of Changes in General Fixed Assets By Function For the Year Ended September 30, 1993 General Fixed Assets October 1, 1992 Additions Deletions $ 505,822 $ 67,438 $ 8,993 328,911 569,212 22,536 147,037 4,792 6,020 170.427 12.828 1,158,217 649,478 36,321 114.644 1 272 861 General Inter- Fixed Assets Departmental September30, Transfers 1993 $(1,265) $ 563,002 1,265 876,852 142,245 6,020 183.255 1,771,374 649 478 36 321 82 114.644 1 886 018 1 1 Enterprise Fund Bond Amortization Account General Fund Debt Service Fund Capital Projects Fund Enterprise Fund Meter deposits account Retained earnings account Reserve account Bond amortization account Sinking fund account Capital improvement account VILLAGE OF TEQUESTA, FLORIDA Schedule of Investments -All Funds September 30, 1993 United States Treasury Obligations Unamortized Interest Maturity Par Value Cost Discount Rate Date $905,000 $860,278 $44,722 7.625 2/15/07 State Board of Administration Interest Amounts Rate $1,089,181 Various 107,398 Various 119, 401 Various 142, 800 Various 1,366,911 Various 252,016 Various 215 Various 2, 900 Various 460,009 Various 83 VILLAGE OF TEQUESTA, FLORIDA Schedule of Insurance September 30, 1993 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) Policy Number 65-26-41 3-2215 24883 BA0014609-07 30157954-1 30158137 FM552 CPP0117219-06 X00068591-02 POS331298 92-010-87 BMI-AT9442007-00 ETB-102089 84 Coverage $20,000 1.5 times annual salary Various $1,000,000 $100,000 $100,000 $500,000 $1,000,000 $1,000,000 $1,000,000 $1,300,000 $2,000,000 $75,000 VILLAGE OF TEQUESTA, FLORIDA General Revenues by Source (Unaudited) (1) Last Ten Fiscal Years Licenses Fiscal Year Ended and September 30 Taxes (2) p rmi 1984 $1,129,107 $113,982 1985 1,777,305 102,894 1986 1,729,412 104,014 1987 1,881,171 123,303 1988 2,143,933 170,834 1989 2,199,925 219,862 1990 2,485,814 190,743 1991 2,545,957 153,314 1992 2,645,035 222,465 1993 2,666,148 188,477 (1) Includes General, Special Revenue, Debt Service, Capital Projects, and Expendable Trust Funds. (2) Includes Fire/Emergency Rescue Service. Ad valorem tax millage effective year 1985. (3) Includes intragovernmental services and interest income. Source: Village of Tequesta financial records. 85 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Charges for Fines and Intergovernmental Services Forefeits $ 335,899 $ 8,807 $48,783 348,936 9,023 43,330 385,952 11,869 42,929 421,385 8,880 51,126 568,091 19,562 53,034 701,112 32,941 51,555 872,494 14,146 37,903 513,839 17,442 38,035 528,276 27,174 31,647 531,696 21,304 46,037 86 Miscellaneousl3) Total $107,163 144,301 151,640 123,140 166,547 338,392 304,227 241,371 215,887 202,040 1,743,741 2,425,789 2,425,816 2,609,005 3,122,001 3,543,787 3,905,327 3,509,958 3,670,484 3,655,702 VILLAGE OF TEQUESTA, FLORIDA General Government Expenditures by Function (Unaudited) (1) Last Ten Fiscal Years ' 1 1 Fiscal Year Ended General Public ' Sep tember 30 Government Safet ~(2) Tr ansportation , 1984 $ 274,038 $ 755,573 227,840 ' 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 (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. (3) Refuse/Recycling Service reported in Enterprise Fund beginning year 1991. 1 Source: Village of Tequesta financial records. ' 87 ' 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Culture Physical Human and Debt Environment(3) Services Recreation Service Total $183,591 $ 2,154 $128,247 $91,299 1,662,742 206,776 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 88 VILLAGE OF TEQUESTA, FLORIDA Property Tax Levies and Collections (Unaudited) (1) Last Ten Fiscal Years Fiscal Year Ended September 30 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 Total Tax Levy (11 $ 641,179 1,038,027 1,129,45 8 1,255,399 1,501,241 1,527, 891 1,82 1,025 1,864,093 1,969,500 1,973,375 Current Tax Collections (1) $ 636,533 1,037,003 1,128,128 1,252,073 1,496,727 1,522,364 1,813,915 1,850,505 1,960,892 1,958,191 Percent of Levy Collected (1) Includes discounts taken by property taxpayers. Source: Palm Beach County Tax Collector's office. 89 99.3 99.9 99.9 99.7 99.7 99.6 99.6 99.3 99.6 99.2 Outstanding Delinquent Taxes $ 4,646 1,024 1,330 3,326 4,514 5,527 7,110 13,588 8, 608 15,184 Delinquent ' Taxes to Tax Lever .7 , .1 .1 ' .3 .3 .4 , .4 .7 .8 t 1 1 1 1 ~, THIS PAGE INTENTIONALLY LEFT BLANK VILLAGE OF TEQUESTA, FLORIDA Taxable Value and Just Value of Taxable Property (Unaudited) Last Ten Fiscal Years Real Prop erty Taxable September 30 Value Just Value 1984 $206,001,538 $262,247,858 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 Source: Palm Beach County Property Appraiser's office. 90 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 Perso nal Pro.~erty Taxable Just Value Value $11,333,640 $11,916,171 10,902,190 11,562,981 10,812,334 11,562,008 11,547,658 12,241,396 12,052,258 12,977,252 14,685,689 15,755,728 16,463,806 21,797,356 15,726,846 20,588,283 15,846,444 20,706,881 15,683,045 16,779,738 Toy Taxable Value $218,153,678 229,903,728 244,470,485 269,314,508 274,426,183 305,061,255 354,406,269 362,232,906 356,914,548 344,814,635 91 Just Value $274,164,029 287,464,396 308,932,060 336,718,284 342,502,112 382,244,611 436,612,303 444,923,277 439,603,919 423,199,792 Ratio Taxable Value To Just Value 80 80 79 80 80 80 81% 81% 81% 81% VILLAGE OF TEQUESTA, FLORIDA Property Tax Rates -All Direct and Overlapping Governments (Unaudited) (Per $1,000 of Assessed Value) Last Ten Fiscal Years South Florida County Water General School County Management September 30 Fund CountX Board Library District 1984 3.1506 4.2489 6.9329 .3526 .3990 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 (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 provides fire rescue service to the Village at an annual contract rate. The millage required to fund the service is included within the Village tax rate. Source: Palm Beach County Property Appraiser's office. 92 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Jupiter Jupiter Fire Inlet District Distri No. 1 .2290 1.4660 .2290 (1) .2290 (1) .2115 (1) .1979 (1) .1920 (1) .1772 (1) .1434 (1) .1325 (1) .1257 (1) Florida Naviga- tional Inland Dis ric .0670 .0395 .0370 .0550 .0530 .0520 Children's County Services Health Care Council District Total 16.7790 17.2841 17.8526 18.6462 .0923 20.4569 .1537 21.1151 .1929 1.2500 22.8673 .2238 1.2500 22.1311 .2215 1.4750 23.0034 .3039 1.4750 23.0172 93 VILLAGE OF TEQUESTA, FLORIDA Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita (Unaudited) Last Ten Fiscal Years Fiscal Year Ended Taxable September 30 Po~ulation* Value 1984 3,870 $218,153,678 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 * Source: Palm Beach County Planning Board, University of Florida Estimates, Federal Census, and Village Building Department Records. 94 1 1 1 1 1 1 1 1 1 1 1 ' ' 3 ' Debt Ratio of Net Gross Service Net Bonded Debt Net Bonded ' Bonded Debt Monies Avail 1 Bonded D bt to Assessed V l Debt P C i e ue a er ap ta $825,000 $110,205 $714,795 .33 % $184.70 805,000 109,769 695,231 .30 176.99 785,000 110,937 674,063 .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 1 ' 95 VILLAGE OF TEQUESTA, FLORIDA Computation of Legal Debt Margin September 30, 1993 Total assessed value Legal debt margin: Debt limitation - 10 % of total assessed value Total debt outstanding Less: amount available in debt service fund Total debt applicable to limitation Legal debt margin $1,907,625 (120.530) 96 $329.131.590 $ 39,913,159 (1.787.095) $ 38.126.064 1 1 1 1 VILLAGE OF TEQUESTA, FLORIDA Computation of Direct and Overlapping Debt (Unaudited) September 30, 1993 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 Te uesta Tequesta $ 459,470 100.00% $ 459,470 433,600,000 .68 % 2,948,480 284.050.000 .68 % 1.931.540 718.109,470 5 339 490 97 ' VILLAGE OF TEQUESTA, FLORIDA Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures (Unaudited) ' Last Ten Fiscal Years 1 Ratio of Debt ' Total Service to Fiscal Year Total General Total Ended Debt Expenditures General ' September 30 Principal Interest Service (1~ Expenditures 1984 $ 20,000 $71,299 $91,299 $1,662,742 5.5 ' 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 64,30 89,350 2,916,900 3.1 1989 25,000 61,905 86,905 3,419,901 2.5 1990 30,000 60,082 90,082 4,242,491 2.1 ' 1991 30,000 57,707 87,707 3,366,496 2.6 1992 35,000 56,009 91,009 3,679,759 2.5 , 1993 35,000 53,565 88,565 4,338,773 2.0 1 (1) Includes General, Special Revenue, Debt Service, Capital Projects and Expendable Trust Funds. 1 1 1 1 98 ' VILLAGE OF TEQUESTA, FLORIDA Revenue Bond Coverage Water Bonds (Unaudited) ' Last Ten Fiscal Years Fiscal Year Net Revenue Ended Gross Operating Available for ' September 30 Revenues Expenses Debt Service 1984 $1,349,576 $ 982,883 $366,693 ' 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 (1) Represents net debt service costs per a securities contract requiring the Village to purchase an aggregate of $980,000 par amount of U.S. Treasury Bonds due February 15, 2007, ' bearing interest at 7-5/8%, at an aggregate purchase price of $928,324. The purchase price of the Treasury Bonds is added to the gross debt service and the income from the Treasury Bonds is subtracted from gross debt service to compute Bond Service ' Requirements. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Debt Service Re quirements Debt Amortization Service Principal Interest Account (1) Total ove $ -0- $276,344 $ -0- $276,344 1.33 25,000 223,139 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 2.03 100 VILLAGE OF TEQUESTA, FLORIDA Property Value, Construction and Bank Deposits (Unaudited) Last Nine Fiscal Years Commercial Residential Construction (1) Construction (1) Number Number 1 1 1 1 Propgr~y Value (~,~_ ' Fiscal of of Real Personal Year Units Value Units Value Deposits (2) Prom' Propertk, 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 10,812,334 1987 1 116,250 27 2,717,154 269,494,041 257,766,850 11,547,658 1988 6 6,803,410 24 3,358,458 294,073,604 329,524,860 12,052,258 1989 6 1,615,526 18 2,694,552 289,305,649 366,488,883 15,755,728 1990 1 197,126 20 3,206,343 313,199,861 414,814,947 21,797,356 1991 1 1,882,888 4 962,089 257,956,427 424,334,994 20,588,283 1992 0 0 11 2,395,128 308,119,520 418,897,038 20,706,881 1993 1 101,700 8 2,083,944 278,165,130 406,420,054 16,779,738 Information only available for years provided. Source: (1) Village of Tequesta Building Department. (2) Tequesta Commercial Banks and Savings and Loan Associations. (3) Palm Beach County Property Appraiser's office. 101 ' 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 VILLAGE OF TEQUESTA, FLORIDA Principal Taxpayers (Unaudited) September 30, 1993 Percentage 1993 of Assessed Assessed Tax,~avers Type of Business Valuation Valuation County Line Plaza (K-Mart) (TAMWEST) Shopping Center $ 9,394,251 2.72% Tequesta Shoppes (Publix) (Travelers) Shopping Center 7,449,083 2.16 Dorner Properties (Bank of Palm Beach Undeveloped & Trust Company) Real Estate 6,563,750 1.90 Lighthouse Plaza (Stamford Holdings, Inc.) Shopping Center 4,074,582 1.18 Barnett Bank (First National Bank of Jupiter/Tequesta) Banking 3,061,350 .89 Tequesta Country Club Golf/Social Club 2,545,999 .74 Tequesta Fashion Mall (Edwin J. Nelson) Shopping Center 2,266,154 .65 Tequesta Plaza (Fehlhaber Corporation) Shopping Center 2,047,636 .59 SHW, Ltd. Real Estatel 1, 872, 883 .55 Tequesta Corporate Center Feibel Recreation Center, Inc. & Tequesta Corp. Professional Center Partners Office Building 1.532.625 .45 40 808 313 11.83 Source: Palm Beach County Property Appraiser's Office 102 VILLAGE OF TE UESTA FLORIDA ' Q Miscellaneous Statistics (Unaudited) September 30, 1993 , Date of Incorporation: 1957 , Forms of Government: Council-Manager, 3 Councilmembers elected even years, 2 Councilmembers elected odd years ' Municipal Elections: Non-Partisan Arm: Approximately 2 square miles ' Miles of Streets: Approximately 44 lane miles ' Fire Protection: Provided by -Palm Beach County Fire Rescue Rating - 4 Police Protection: Number of stations - 1 , Number of certified officers - 15 Number of dispatchers - 4 ' Municipal Water Department: Number of customers - 4,502 Average daily consumption - 2.668 million gallons t Miles of water mains -approximately 50 miles Sanitary Sewage: Service provided by Loxahatchee River Environmental Control , District (ENCON) Storm Sewers: Adequate coverage Garbage Collection: Service franchised to Nichol's Sanitation , Frequency of service is bi-weekly Electric Service: Florida Power & Light Company ' Telephone Service: Southern Bell Telephone & Telegraph Company ' Building Permits Issued: 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 Em l~oyees: Full-time - 66 103 ' 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Fiscal Year 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 Sources: Population ll) 3, 870 3,928 4,077 4,141 4,448 4,479 4,499 4,508 4,533 4,551 VILLAGE OF TEQUESTA, FLORIDA Demographic Statistics (Unaudited) Last Ten Fiscal Years Per Capita Income (2) 20, 362 Median A e 2 Education Level in Years of Formal Schooling (2) Unemployment Rate (3) 9.1 8.8 5.9 7.7 7.2 8.4 7.9 9.7 8.8 9.2 (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. 104 1 EVERETT B- NOWLEN, CPA (1 930.1 984) EDWARD T. HOLT. CPA ' WILLIAM B. MINER, CPA ROBERT W. HENDRIX. JR-, CPA JANET R. BARICEVICH, CPA NOWLEN, HOLT & MINER, P.A. CERTIFIED PUBLIC ACCOUNTANTS 21 5 FIFTH STREET SUITE 200 POST OFFICE BOX 347 WEST PALM BEACH, FLORIDA 33402-0347 TELEPHONE (407) 659-3060 FAX (407) 835-0628 KATHLEEN A. MINER, CPA KIM HATCHER BEAUMONT, CPA MARILYN ROBERTS, CPA R. GREGORY SMITH, CPA ROBERT W. HELMREICH, CPA TERRY L. MORTON, JR., CPA N. RONALD BENNETT, CPA J. MICHAEL STEVENS. CPA ROBIN A- KOCIELKO, CPA MARK B. ELHILOW, CPA MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS ACCOUNTING FIRMS ASSOCIATED INC. BELLE GLADE OFFICE 333 S.E. 2nd STREET POST OFFICE BOX 338 BELLE GLADE, FLORIDA 33430-0338 TELEPHONE (407)996.5612 FAX (407) 998-8248 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL STRUCTURE RELATED MATTERS NOTED IN A FINANCIAL STATEMENT AUDIT CONDUCTED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS ' The Honorable Mayor and Village Council Village of Tequesta, Florida t We have audited the general purpose financial statements of the Village of Tequesta, Florida, ' as of and for the year ended September 30, 1993 and have issued our report thereon dated January 24, 1994. 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. In planning and performing our audit of the general purpose financial statements of the Village ' of Tequesta, Florida for the year ended September 30, 1993, 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 are required to assess the expected benefits and related costs of ' internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safe- guarded against loss from unauthorized use or disposition, and that transactions are executed in ' accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. ' 105 Because of inherent limitations in any internal control structure, errors or irregularities ma ' Y 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 u ose of this re ort we have classified the si nificant internal control structure ' P rP P ~ g policies and procedures in the following categories: Cash ' Investments , Inventory Revenue, receivables and receipts Expenditures for goods and services and accounts payable 1 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 t financial statements. Segregation of Duties t 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. Fixed Asset Recordkeeping , We noted that the detail fixed asset records were not updated for all current year capital additions. t 106 ' ' 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. 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 noted the following reportable condition that we believe to be a material weakness. ' Monthly Reconciliations and Postings ' We noted that the Village did not timely and accurately reconcile the cash accounts to bank statements and the control accounts to subsidiary ledgers. In addition, the Village was several months in arrears in posting entries and ' performing monthly close-outs of the general ledgers. To have valid and meaningful financial data these activities need to be performed in a timely and ' accurate manner. Our recommendations regarding the above conditions, as well as other matters involving the ' internal control structure and its operations we noted, have been reported to the management of the Village of Tequesta, Florida and are contained in the accompanying Management Letter. ' This report is intended for the information of management and Village Council. This restriction is not intended to limit the distribution of this report, which is a matter of public record. ' January 24, 1994 1 ' 107 1 NOWLEN, HOLT & MINER, P.A. CERTIFIED PUBLIC ACCOUNTANTS 215 FIFTH STREET ' SUITE 200 POST OFFICE BOX 347 WEST PALM BEACH, FLORIDA 33402.0347 TELEPHONE (407) 659-3060 FAX (407) 835-0628 MEMBERS AMERICAN INSTITUTE OF EVERETT B. NOWLEN, CPA (19301 984( KATHLEEN A. MINER, CPA TERRY L- MORTON, JR., CPA CERTIFIED PUBLIC ACCOUNTANTS EDWARD T. HOLT, CPA KIM HATCHER BEAUMONT, CPA N. RONALD BENNETT, CPA FLORIDA INSTITUTE OF WILLIAM B. MINER, CPA MARILYN ROBERTS, CPA J- MICHAEL STEVENS. CPA CERTIFIED PUBLIC ACCOUNTANTS ROBERT W. HENDRIX, JR., CPA R. GREGORY SMITH, CPA ROBIN A- KOCIELKO, CPA ~ ACCOUNTING FIRMS ASSOCIATED INC. ' JANET R. BARICEVICH, CPA ROBERT W- HELMREICH, CPA MARK B. ELHILOW, CPA BELLE GLADE OFFICE 333 S.E. 2nd STREET ' POST OFFICE BOX 338 BELLE GLADE, FLORIDA 33430-0338 TELEPHONE (407) 996-5812 FAX (407) 998-8248 ' ' INDEPENDENT AUDITOR S REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS ISSUED BY THE GAO ' 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, 1993, and have issued our- report thereon dated ' January 24, 1994. 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. ' Compliance with laws, regulations, contracts, and grants applicable to the Village of Tequesta, Florida is the responsibility of the Village's management. As part of obtaining reasonable ' assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Village's compliance with certain provisions of laws, ' regulations, contracts, and grants. However, it should be noted that our objective was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests 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. ' 108 ' ' We noted an immaterial instance of noncompliance that is reported in the accompanying Management Letter. 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~, ~0~ o ~l'lannut..~. A-. January 24, 1994 1 1 1 1 109 - ' NOWLEN, HOLT & MINER, P.A. , CERTIFIED PUBLIC ACCOUNTANTS 215 FIFTH STREET ' SUITE 200 POST OFFICE BOX 347 WEST PALM BEACH, FLORIDA 33402-0347 TELEPHONE (407) 659-3060 FAX (407) 835-0628 ' MEMBERS AMERICAN INSTITUTE OF EVERETT B. NOWLEN, CPA (19301984) KATHLEEN A. MINER, CPA TERRY L. MORTON, JR., CPA CERTIFIED PUBLIC ACCOUNTANTS EDWARD T. HOLT, CPA KIM HATCHER BEAUMONT, CPA N. RONALD BENNETT. CPA FLORIDA INSTITUTE OF WILLIAM 8. MINER. CPA MARILYN ROBERTS. CPA J. MICHAEL STEVENS, CPA CERTIFIED PUBLIC ACCOUNTANTS ' ROBERT W. HENDRIX. JR., CPA R. GREGORY SMITH, CPA ROBIN A. KOCIELKO. CPA ACCOUNTING FIRMS ASSOCIATED INC. JANET R. BARICEVICH, CPA ROBERT W. HELMREICH, CPA MARK B. ELHILOW, CPA BELLE GLADE OFFICE 333 S.E. 2nd STREET , POST OFFICE BOX 338 BELLE GLADE, FLORIDA 33430-0338 TELEPHONE (407) 996-5612 MANAGEMENT LETTER FAX (407) ss6-6246 ' The Honorable Mayor and Village Council t Village of Tequesta, Florida 1 We have audited the general purpose financial statements of the Village of Tequesta, Florida for the year ended September 30, 1993 and have issued our report thereon dated January 24, 1994. ' In planning and performing our audit of the general purpose financial statements of the Village of Tequesta, Florida for the year ended September 30, 1993, we considered its internal control ' structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure. ' As a result of this examination, we would like to present some recommendations for considera- tion by management. These suggestions are based primarily on the work done during our audit ' engagement, and we do not wish to imply that they cover every possible weakness. Neverthe- less, we do think that they deserve your careful evaluation. The status of these comments will be reviewed during the next audit engagement. We have already discussed many of these ' comments with the management of the City and we will be pleased to discuss them in further detail at your convenience, to perform any additional study of these matters, or to assist you in implementing the recommendations. ' PRIOR YEAR COMMENTS WHICH CONTINUE TO APPLY , Segregation of Duties t 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. 110 ' 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 ' CURRENT YEAR COMMENTS Monthly Reconciliations and Postings ' We noted that the Villa e did not tim 1 g e y and accurately reconcile the cash ' accounts to bank statements and the control accounts to subsidiary ledgers. In addition, the Village was several months in arrears in posting entries and performing monthly close-outs of the general ledgers. To have valid and ' meaningful financial data, these activities need to be performed in a timely and accurate manner. ' We recommend that procedures be established to ensure the above mentioned items be performed in a timely and accurate manner. ' Fixed Asset Recordkeepin~ We noted that the detail fixed asset records were not updated for all current year ' capital additions. We recommend that only items meeting the Village's capitalization policy be ' charged to capital outlay accounts and a copy of the invoice for these items be given to the person responsible for updating the fixed asset records. 1 1 111 1 Compliance with Florida Statutes 932 7055 Section 932.7055(8)(x), Florida Statutes require every law enforcement agency receiving or expending forfeited property or proceeds from the sale of forfeited property in accordance with the Florida Contraband Forfeitures Act to submit semi-annual reports to the Florida Department of Law Enforcement by April 10 and October 10 documenting the receipts and expenditures. We noted that the semi-annual reports were not filed by the due dates. We recommend that the Village establish procedures to monitor compliance with reporting requirements of regulatory agencies. Compliance with Florida Statute 218 503 Nothing came to our attention that would cause us to believe that the Village is or at any time during the fiscal year was in a state of financial emergency as defined in Section 218.503(1), Florida Statutes. Compliance with Florida Statute 218 32 The financial report for the Village of Tequesta, Florida to be filed with the Department of Banking and Finance pursuant to Section 218.32(1)(b), Florida Statutes has not been prepared as of the date of the audit report. The report is due on or before March 31, 1994. Oversight Unit and Component Units The Village of Tequesta, Florida is a municipal corporation organized pursuant to Special Act 57-1915, Laws of Florida, 1957. Based upon the application of criteria defined in publications cited in Chapter 10.553, Rules of the Auditor General, the Village has determined that the only component unit operating within the jurisdiction of the Village that would be required to be included in the general purpose financial statements of the Village, is the Firefighters' Retirement System which is included as a pension trust fund. Other Current Year Comments Our audit did not disclose any further items that would be required to be reported under Chapter 10.554(1)(f), Rules of the Auditor General. 112 1 1 1 1 1 '- This report is intended for the information of the mans ement and members of the Villa e g g Council. This restriction is not intended to limit the distribution of this report, which is a matter ' of public record. ~~ ~,1,-d~.Q,~- Q ~'l.~t,~~~~. t January 24, 1994 1 ' 113