CAFR_FY Ending_09/30/2005 r
,F
Viflagre of Tequesta
Comprehensive Annual
Financial Report
Fiscal Year Ending September 30, 2005
Now
New Tequesta Village Hall
Opening 2006
VILLAGE OF TEQUESTA, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 2005
VILLAGE OF TEQUE5TA, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL. YEAR ENDED SEPTEMBER 30, 2005
PREPARED BY
FINANCE DEPARTMENT
THE VILLAGE OF TEQUESTA, FLORIDA
VILLAGE OF TEQUESTA, FLORIDA
TABLE OF CONTENTS
PAGE
L INTRODUCTORY SECTION
Letter of Transmittal i -v
Certificate of Achievement for Excellence in Financial Reporting vi
Organization Chart Vii
List of Principal Officials viii
II. FINANCIAL SECTION
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS 1 -2
MANAGEMENT'S DISCUSSION AND ANALYSIS 3 -15
BASIC FINANCIAL STATEMENTS:
Government -Wide Financial Statements:
Statement of Net Assets 16
Statement of Activities 17
Fund Financial Statements:
Balance Sheet — Governmental Funds 18
Statement of Revenues, Expenditures and Changes in Fund Balances — 19
Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 20,
Statement of Net Assets — Proprietary Funds 21.
Statement of Revenues, Expenses and Changes in Net Assets — Proprietary Funds 22.
Statement of Cash Flows — Proprietary Funds 23
Statement of Fiduciary Net Assets — Fiduciary Funds 24
Statement of Changes in Fiduciary Net Assets — Fiduciary Funds 25
Notes to Basic Financial Statements 26 -57
Required Supplementary Information (Other than MD &A):
Budgetary Comparison Schedule — General Fund 58
Note to Budgetary Comparison Schedule 59
Schedule of Employer Contributions 60
VILLAGE OF TEQUESTAYLORIDA
TABLE OF CONTENTS
(Continued)
PAGE
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet — Nonmajor Governmental Funds 61
Combining Statement of Revenues, Expenditures and Changes in Fund Balances —
Nonmajor Governmental Funds 62,
Budgetary Comparison Schedule — Special Revenue Fund 63
Budgetary Comparison Schedule — Capital Projects Fund 64,
Combining Statement of Net Assets — Nonmajor Enterprise Funds 65
Combining Statement of Revenues, Expenses and Changes in Net Assets —
Nonmajor Proprietary Funds 66
Combining Statement of Cash Flows — Nonmajor Enterprise Funds 67.
Combining Statement of Fiduciary Net Assets 68.
Combining Statement of Changes in Fiduciary Assets 69
111. STATISTICAL SECTION
Government -wide Information:
Government -wide Expenses by Function 70
Govemment -wide Revenues 71
Fund Information:
General Governmental Expenditures by Function 72
General Governmental Revenues by Source 73
Property Tax levies and Collections 74
Assessed Value of Taxable Property 75
Property Tax Rates — All Direct and Overlapping Governments 76
Computation of Legal Debt Margin 77
Ratio of Net General Bonded Debt to Assessed Value 78
Direct and Overlapping Debt — General Obligation Debt 79
Ratio of Net General Bonded Debt to Assessed Value 80
Revenue Bond Coverage 81
Property Value, Construction and Bank Deposits 82
Principal Taxpayers 83,
Miscellaneous Statistics 84
Demographic Statistics 85
Schedule of Insurance 86
IV. COMPLIANCE SECTION
Report of Independent Certified Public Accountants on Compliance and on Internal
Control over Financial Reporting based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards 87-88
Management Letter in Accordance with the Rules of the Auditor General of the
State of Florida 89-90
1
INTRODUCTORY SECTION
Vd&4 Of
250 Tequesta Drive I P: (561) 575 -6200
Tequesta, FL 33469 F: (561) 575 -6203
February 24, 2006
To the Honorable Mayor, Members of
The Village Council, and Citizens
of the Village of Tequesta, Florida
Chapter 11_45 of the Florida Statues, Chapter 10.550 of the rules of the Auditor General of the
State of Florida requires every general purpose local government publish within six months of the
close of each fiscal year a complete set of audited financial statements. The Comprehensive
Annual Financial Report of the Village of Tequesta, Florida, is published to fulfill that
requirement for the fiscal year ended September 30, 2005.
The financial statements included in this report conform with accounting principles generally
accepted in the United States (GAAP) established by the Governmental Accounting Standards
Board. This report consists of management's representations concerning the finances of the
Village of Tequesta. Consequently, management assumes full responsibility for the completeness
and reliability of the information presented. We believe the data presented in this report to be
accurate in all material respects, and include all statements and disclosures necessary for the
reader to obtain a thorough understanding of the Village's financial activities. To provide a
reasonable basis for making these representations, management has established a comprehensive
internal control framework that is designed for this purpose. Because the cost of internal controls
should not outweigh their benefits, the Village's comprehensive framework of internal controls
has been designed to provide reasonable rather than absolute assurance that the financial
statement will be free from material misstatement. As management, we assert that, to the best of
our knowledge and belief, this financial report is complete and reliable in all material respects.
The Village's financial statements have been audited by Rachlin Cohen & Holtz LLP, a licensed
certified public accounting firm. The independent auditor concluded, based upon the audit, that
there was reasonable basis for rendering an unqualified opinion that the Village's Financial
statements for the fiscal year ended September 30, 2005 are fairly presented in accordance with
GAAP. The independent auditor's report is located at the front of the financial section of this
report.
i
Management's discussion and analysis (MD&A) immediately follows the independent auditor's
report and provides a narrative introduction, overview, and analysis of the basic financial
statements. MD &A complement this letter of transmittal and should be read in conjunction with
it.
PROFILE OF THE GOVERNMENT
The Village of Tequesta was incorporated June 4, 1957 and has a Council- Manager form of
government.
All powers of the Village are vested in an elected governing body of the Village consisting of a
five member Village Council responsible for enacting ordinances, resolutions and regulations
governing the Village, adopting budgets, determining policies, as well as appointing the members
of various advisory boards and the Village Manager. The Village Manager executes the laws and
administers the government as well as attends to the day -to -day affairs of the Village.
The Village of Tequesta provides a full range of services, including police and fire protection; the
construction and maintenance of streets and other infrastructure; recreational and cultural
activities; water and stormwater utilities and contracts for sanitation services.
The annual budget serves as the foundation for the Village of Tequesta's financial planning and
control. The Village departments meet with and submit their plans and needs for the coming year
to the finance department, which compiles a proposed budget. The Village Manager reviews and
then submits the Manager's recommended budget to the Village Council. The Village Council
reviews the budget, holds workshops for discussion on the budget and subsequently holds two
public hearings to obtain citizen input and make changes prior to adoption of the budget Finally,
prior to October 1", the Village Council adopts the approved budget along with an ordinance
establishing the property tax rate (millage) required to fund the budget Department heads
recommend transfers of budgeted amounts within their department, which require approval of the
Village Manager. All transfers greater then $5,000, capital items or transfers between funds are
reported to the governing council. Supplemental appropriations require the special approval of
the governing council. Budget -to- actual comparisons are provided in this report for each
individual governmental fund for which an appropriated annual budget has been adopted.
FACTORS AFFECTING FINANCIAL CONDITION
The information presented in the financial statements is perhaps best understood when it is
considered from the broader perspective of the specific environment within which the Village of
Tequesta operates.
ii
Local Economy
The Village is located at the extreme northeastern quadrant of Palm Beach County. Tequesta is a
relatively affluent residential community with adequate commercial facilities necessary to
provide goods and services to its residents. Northern Palm Beach County ranks as one of the top.
growth areas in the country. Although Tequesta's growth potential is restricted by the natural
boundaries of the Atlantic Ocean to the east, the Loxahatchee River to the west, the Town of
Jupiter to the south and Martin County to the north, Tequesta's growth potential for the
foreseeable future continues to be favorable
Property value assessments for fiscal year 2004 /2005 increased approximately 15 %. New
construction and general appreciation in property values continue to be important factors in
Tequesta's expectation of a continued rise in property assessments within the Village.
Long -Term Financial Planning
The Village of Tequesta's primary focus related to economic growth is the rebuilding and
improving of existing commercial and residential property. The Village has a five -year capital
improvement plan to continue to maintain and enhance existing roadways, parks and recreational
facilities to encourage the improvement of these properties.
Unreserved, undesignated fund balance in the general fund fails within the policy guidelines
targeted by the Council for budgetary and planning purposes (i.e., 20% of total general fund
expenditures).
MAJOR INITIATIVES
• Continue to explore annexation of contiguous properties in unincorporated Palm Beach
County.
• Continue to evaluate capital and operational needs within the Village to ensure a high-
level service delivery in an efficient and economical manner.
• Continue to explore alternative revenue sources, at both the state and federal level, with
the assistance of a professional lobbyist.
• Expand water utility services to unincorporated customers, generating new revenues for
the utility.
• Continue to evaluate and implement contemporary financial policies and procedures to
ensure the efficient and economical operation of the Village of Tequesta.
• Begin constructing a new Village Hall.
• Complete a new water utility infrastructure in Martin County to service Tropic Vista
residences.
• Construct a new reverse osmosis well and raw water pipe line, reducing demand on
external suppliers and increasing natural water supply
iii
• Construct new playground, pathways and restrooms at Constitution Park.
• Design and construct a new linear park along Dixie Highway.
• Provide repairs to Tequesta Bridge
• Coordinate improvements to railroad crossing at Tequesta Drive.
• Construct new stormwater system for South Cypress Drive and install new landscaped
median.
Cash Management
The Village of Tequesta maintains two pooled cash accounts, the general investment account and
the water enterprise investment account. The finance department monitors cash requirements and
the finance director approves temporary idle cash for investment into these accounts. The
investment policy of the Village is to maximize its investments in high quality, risk -free securities
authorized by State statutes, while maintaining a competitive yield on its portfolio.
Tequesta's investments for the current year consisted of deposits with the State Board of
Administration (SBA) — Local Government Surplus Funds Trust Fund Investment Pool,
obligations of the U.S. Government, and amounts held by an outside custodian on behalf of the
Pension Trust Funds. Investments with the SBA 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. These funds have adopted operating
procedures consistent with the requirements for a 2a -7 fund. Because of short maturities and high
quality, securities in this fund are considered practically risk free.
Risk Management
During 2405, Tequesta continued to use a third -party insurance coverage for its Risk
Management Program.
Pension Benefits
The Village maintains a single- employer, defined benefit pension retirement system. The
retirement system provides benefits to all full time firefighters, as well as any full time police
officers or general employees hired January 1, 1996 or thereafter. In 1999, the Plans were
amended, establishing a separate plan for public safety officers (firefighters and police officers)
and a separate plan for general employees. The retirement system was established by the Village
and is administered by two separate Boards of Trustees (public safety offers and general
employees). The retirement system receives contributions that may not be used to pay the
benefits of all employee classes. Due to this restriction, for financial statement purposes, three
separate plans are shown as pension trust funds. The Village Employees' Retirement System
administers the following plans: The Firefighters' Pension Trust Fund (FPTF), The Police
Officers' Pension Trust (PPTF) and the General Employees' Pension Trust Fund (GPTF). The
Firefighters' Pension Trust Fund and the Police Officers' Pension Trust Fund have issued stand -
iv
alone financial statements and are included in the financial statements of the Village as pension
trust funds.
AWARDS AND ACKNOWLEDGEMENTS
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, 2004. This was the twenty- second consecutive year that
Tequesta has received this prestigious award. In order to be awarded a Certificate of
Achievement, Tequesta had to publish an easily readable and efficiently organized
comprehensive annual 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 will continue to meet the Certificate of Achievement
Program's requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
The preparation of this report would not have been possible without the efficient and dedicated
services of the entire staff of the finance department. We would like to express our appreciation
to all members of the department who assisted and contributed to the preparation of this report.
In closing, we must also acknowledge the Mayor and Council for their unfailing support for
maintaining the highest standards of professionalism in the management of the Village of
Tequesta's finances.
Respectfully submitted,
Michael R. Couzzo, Jr. JoAnn Forsythe, CPA
Village Manager Finance Director
V
VILLAGE OF TEQUESTA, FLORIDA
CERTIFICATE OF ACHIEVEMENT
SEPTEMBER 30, 2005
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, 2004
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
OF
E �� �_ �- / / per'• .
President
Executive Director
-vi-
VILLAGE OF TEQT:TESTA, FL ORIDA
ORGANIZATION CHART
SEPTEMBER 30, 2005
RESIDENTS OF
TEQUESTA
VILLAGE COUNCIL
VILLAGE MANAGER
ASSISTANT
VILLAGE MANAGER
VILLAGE ATTORNEY DEPARTMENTS aE CLERK
COMMUNITY FINANCE HUMAN RESOURCES LEISURE FIRE%''' UE POLICE PUSUC WORKSf UTILITIES
DEVELOPMENT SERVICES TRANSPORTATION
WOW RMNING REMAIN PARRS RMSEd WATBt SMRWATFR
CODE AE=NG
�oRCErr�ENNr
-vii-
VILLAGE OF nQUESTA, FLORIDA
LIST OF PRINCIPAL OFFICIALS
SEPTEMBER 30, 2005
VILLAGE COUNCU, 20042005
James Humpage Mayor
Patricia Watkins Vice -Mayor
Geraldine A. Genco Councilmember
Tom Patemo Councilmember
Edward D. Resnik Councilmember
VILLAGE OFFICIALS
Michael Couzzo, Jr. Village Manager
Scott Hawkins Village Attorney
(Jones, Foster, Johnston & Stubbs, P.A.)
Gwen Carslile Village Clerk
JoAnn Forsythe, CPA Finance Director
James M. Weinand Fire Chief
Stephen J. Allison Police Chief
Position Vacant Director of Community Development
Gary Preston Director of Public Works & Recreation
Michael Couzzo, Jr. Utilities Director
Gregg Corbitt Director of Parks and Recreation (Leisure Services)
Rachlin Cohen & Holtz LLP
Accountants • Advisors
-viii-
2
FINANCIAL SECTION
REPORT OF INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANTS
Cohen
. &Holt.
Accountants - Advisors
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, each major fund, and the aggregate remaining fund information of the Village of Tequesta,
Florida (the Village) as of and for the year ended September 30, 2005, which collectively comprise the
Village's basic financial statements, as listed in the table of contents. These financial statements are the
responsibility of the Village's management. Our responsibility is to express opinions on these basic
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material misstatement. An
audit includes consideration of internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the Village's internal control over financial reporting. Accordingly, we express no
such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the 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 opinions. .
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the governmental activities, the business -type activities, -each major fund, and the
aggregate remaining fund information of the Village of Tequesta, Florida as of September 30, 2005 and
the respective changes in financial position and cash flows, where applicable, thereof for the year then
ended in conformity with accounting principles generally accepted in the United States.
In accordance with Government Auditing Standards, we have also issued a report dated February 24,
2006 on our consideration of the Village's internal control over financial reporting and our tests of its
compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the internal
control over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be read in conjunction with the report in
considering the results of our audit.
-1-
0 _
Raehlin Cohen & Holtz LLP
Dne Southeast Third Avenue ® Tenth Floor ■ Miami, Florida 33131 n Phone 305.377.4228 ® Fax 305.377.8331. www.rachlin.com
An Independent Member of Baker Tilly lnrernationai
M I A M I ■ F 0 R 7 L A U D E R D A L E s W E S T P A L M 9 E A C a ■ 3 7 U A R 7
Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
Page Two
Management's Discussion and Analysis and the Required Supplementary Information on pages 3 to 15
and pages 58 to 60, respectively, are not a required part of the basic financial statements but are
supplementary information required by accounting principles generally accepted in the United States. We
have applied certain limited procedures, which consisted principally of inquiries of management
regarding the methods of measurement and presentation of the required supplementary information.
However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the VilIage's basic financial statements. The introductory section, combining and individual
fund statements and schedules and statistical tables are presented for purposes of additional analysis and
are not a required part of the basic financial statements. The combining and individual fund statements
and schedules have been subjected to the auditing procedures applied in the audit of the basic financial
statements and in our opinion, is fairly stated in all material respects in relation to the basic financial
statements taken as a whole. The information identified in the table of contents as the Introductory and
Statistical Sections have not been subjected to the auditing procedures applied in the audit of the basic
financial statements, and, accordingly, we express no opinion thereon.
4 L-1- ,, e441 4 40
West Palm Beach, Florida
February 24, 2006
-2-
Gohen
(-)&z
A.ccouatams Advisors
MANAGEMENT'S DISCUSSION AND ANALYSIS
(MD &A)
Village of Tequesta; Florida
Management's Discussion and Analysis
As management of the Village of Tequesta, we offer readers of the Village's financial
statement this narrative overview and analysis of the financial activities of the Village for the
fiscal year ended September 30, 2005. We encourage readers to consider the information
presented here in conjunction with the additional information that we have furnished in the
letter of transmittal, which can be found on pages i to v of this report.
Financial Hiehliehts
• The assets of the Village of Tequesta exceeded its liabilities at the close of the most
recent fiscal year by $24.5 million (net assets). Of this amount, $11.5 million
(unrestricted net assets) may be used to meet the ongoing obligations to the citizens
and creditors.
• At the beginning of the fiscal year, the Village of Tequesta closed the Community
Development, an enterprise or business -type fund and assets of the fund were
transferred to the General fund. The effect of this change is that expenses and
revenues presented in the Community Development fund in prior years were recorded
and are presented in the General fund for fiscal year ended September 30, 2005.
• The Village's total net assets increased by $2.4 million (10.4 %) during the current
fiscal year. Key factors of this increase were increases in ad valorem taxes of
$713,618, FEMA reimbursements of $ 497,629; increased investment earnings of
$223,422, an increase in building permit fees of $188,78 and an increase in Code
enforcement fines of $300,000.
• The Village restated its beginning net assets to include capital assets related to lease
purchases that were entered into prior to GASB 34 implementation, that were
identified during the fiscal year ended September 30, 2005. Please see, Notes to
Basic Financial Statements, Note 16 on page 57.
• As of the close of the current fiscal year, the Village's governmental funds reported
combined ending fund balances of $6.8 million, an increase of $1.8 million in
comparison with the prior year.
• At the end of the current fiscal year, unreserved, undesignated fund balance for the.
General fund was $2.4 million, or 32% of the total General fund expenditures.
• The Village's total debt decreased by $428,298 (3.1 %) during the current fiscal year.
Please see, Notes to Basic Financial Statements, Note 9 on page 40.
3
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Village of
Tequesta's basic financial statements. The Village's basic financial statements consist of .
three components: 1) government -wide financial statements, 2) fund financial statements, .
and 3) notes to the financial statements. In addition to these basic financial statements, this
report contains other supplementary information.
Government -wide financial statements. The government -wide financial statements are
designed to provide readers with a broad overview of the Village's finances, in a manner
similar to a private- sector business.
The statement of net assets presents information on all of the Village's assets and liabilities,
with the difference between the two reported as net assets. Over time, increases or decreases
in net assets may serve as a useful indicator of whether the financial position of the Village is
improving or deteriorating.
The statement of activities presents information showing how the Village's net assets
changed during the most recent fiscal year. All changes in net assets are reported as soon as
the underlying event giving rise to the change occurs, regardless of the timing of related cash
flows. Thus, revenues and expenses are reported in this statement for some items that will
result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused
vacation leave).
Both of the government -wide financial statements distinguish functions of the Village that
are principally supported by taxes and intergovernmental revenues (governmental activities)
from other functions that are intended to recover all of a significant portion of their costs
through user fees and charges (business -type activities). The governmental activities of the
Village included general government, public safety, transportation and leisure services. The
business -type activities of the Village included water, stormwater, refuse and recycling and
community development.
The government -wide financial statements can be found on pages 16 -17 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The
Village, like other state and local governments, uses fund accounting to ensure and
demonstrate compliance with finance- related legal requirements. All of the funds of the
Village can be divided into three categories: governmental funds, proprietary funds and
fiduciary funds.
4
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government -wide financial statements.
However, unlike the government -wide financial statements, governmental fund financial
statements focus on near -term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may
be useful in evaluating the Village's near term financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide
financial statements, it is useful to compare the information presented for governmental funds
with similar information presented for governmental activities in the government -wide
financial statements. By doing so, readers may better understand the long -term impact of the
Village's near -term financing decisions. Both the governmental fund balance sheet and the
governmental fund statement of revenues, expenditures, and changes in fund balances
provide a reconciliation to facilitate this comparison between governmental funds and
governmental activities.
The Village maintains five individual governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of
revenues, expenditures, and changes in fund balances for the General, Special Revenue,
Special Law Enforcement, Capital Projects and Capital Improvement fiords. The General
and Capital Projects funds are considered to be a major funds. Data from the other three
governmental funds are combined into a single, aggregated presentation. Individual fund
data for each of these nonmajor governmental funds is provided in the form of combining
statements elsewhere in this report.
The Village adopts an annual appropriated budget for its General Fund. A budgetary
comparison statement has been provided for the General Fund to demonstrate compliance
with this budget.
The basic governmental fund financial statements can be found on pages 18 -20 of this report.
Proprietary funds. The Village maintains one type of proprietary fund. Enterprise funds are
used to report the same functions presented as business -type activities in the government -
wide financial statements. The Village uses enterprise funds to account for its water,
stormwater, refuse and recycling and community development operations. However, it
should be noted that community development was closed in the beginning of fiscal year
September 30, 2005, and revenues and expenditures related to the operations of community
development were recorded in the general fund.
Proprietary funds provide the same type of information as the government -wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for the Water Utility. Data from the Community Development, Stormwater
Utility and Refuse and Recycling funds are combined into a single, aggregated presentation
The basic proprietary fund financial statements can be found on pages 21 -23 of this report.
5
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of
parties outside the Village. Fiduciary funds are not reflected in the government -wide
financial statement because the resources of those funds are not available to support the
Village's own programs. The accounting used for fiduciary funds is much like that used for
proprietary funds.
The basic fiduciary fund financial statements can be found on pages 24-25 of this report.
Notes to the basic financial statements. The notes provide additional information that is
essential to a full understanding of the data provided in the government -wide and fund
financial statements. The notes to the basic financial statements can be found on pages 26-57
of this report.
Other information. In addition to the basic financial statements and accompanying notes,
this report also presents certain required supplementary information concerning the Village
of Tequesta's progress in funding its obligation to provide pension benefits to its employees.
Required supplementary information can be found on pages 58 -60 of this report.
The combining statements referred to earlier in connection with nonmajor governmental
funds, as well as, nonmajor enterprise funds and fiduciary funds are presented immediately.
following the required supplementary information. Combining and individual fund
statements and schedules can be found on pages 61 -69 of this report.
Government -wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of the Village's
financial position. In the case of the Village of Tequesta, total assets exceeded liabilities by .
$24.5 million at the close of the most recent fiscal year.
The largest portion of the Village's net assets (51.5 %) represents investment in capital assets
(e.g., land, buildings, machinery and equipment), less any related outstanding debt used to
acquire those assets. The Village uses these capital assets to provide services to citizens;.
consequently, they are not available for future spending. Although the Village's investment.
in its capital assets is report net of related'debt, it should be noted that the resources needed
to repay this debt must be provided from other sources since the capital assets themselves .
cannot be used to liquidate these liabilities.
6
Village of Tequgsta's Net Assets
Govemmental Activities Business Activities Total
Assets 2005 &004_ 2005 2004 2005 20"
Current and other assets $8,106,445 $6,045,807 $5,885,762 $7,282,480 $13,993,207 $13.328,287
Capital assets, net $7,416.462 $6,549.602 $18.270,078 $17.339246 $25,686,540 $23,8W,848
Total assets $15,522,907 $12,595,409 $24,156,840 $24 ,726 $39,679,747 $37,217,135
Liabilities
Current liabil "Cass and payables $998,469 $758,479 $836,567 $940,240 $1,835,036 $1,698,719
Long -term liabilities $5,809,481 $5.967,203 $7,583,557 $7,854,133 $13,393,038 $13,821,336
Total liabilities $6 807 95o $6 725 682 $8.420,124 $8.794,373 $15,228,074 $15,520,055
Net assets
Invested in capital assets,
net of related debt $1,788,749 $1,372,487 $10,815,151 $9.602,911 $12,603,900 $10.975.398
Restricted $317,102 $322,818 $317,102 $322,818
Unrestricted $6.926,208 $4,947.840 $4,604,463 $5.901.624 $11.530.671 __$10,849,464
Total net assets $8,714.957 $8,320,327 $15,736,716 $15,827.353 $24.451,673 $22,147,680
An additional portion of the Village's net assets, $317,102 (13%), represents resources that
are subject to external restrictions on how they may be used. The remaining balance of $11.5
million (47 %) is unrestricted net assets and may be used to meet the Village's ongoing
obligations to citizens and creditors.
At the end of the current fiscal year the Village of Tequesta is able to report positive balances
in all three categories of net assets, both for the government as a whole, as well as for its
separate governmental and business -type activities. The same situation held true for the prior
fiscal year.
The government's net assets increased by $2,303,994. This increase is attributable to a one
time infusion of resources (i.e. reimbursements from FEM, A related to prior year's
expenses), the degree to which increases in ongoing revenues have outstripped similar,
increases in ongoing expenses (i.e., building permit fees, code enforcement fines, etc.) and
rate increases, increases in operating grants, capital grants and investment earnings.
Governmental activities. Governmental activities increased the Village of Tequesta's net
assets by $2,394,530 thereby accounting for 100% of the total increase in the net assets of the
Village.
7
Village of Teguesta's Chances in Net Assets
Governmental Activities Business4yoe Activities Total
2005 2004 2005 2004 SOS 2004
Revenues:
rogram Revenues:
Charges for Services 1,305,484 1,020,132 4,567,132 4,831,775 5,872,616 5,851,907
Operating Grants & Contributions 515,438 43,945 515,438 43,945
General Revenues:
Property Taxes 4,494,713 3,781,095 4,494,713 3,781,095
Other Taxes 1,084,827 1,089,781 1,084,827 1,089,781
Franchise fees based on gross receipts 367,778 372,212 367,778 372,212
Intergovern mental 622,457 558,069 622,457 558,069
Unrestricted Investment earnings 214,568 79,483 164,163 75,846 378,751 155,329
Fines and forfeitures 352,254 352,254
Gain on sale of capital assets 3,850 3,850
Other Mlsaellaneous 289,647 83.126 317,750 82,576 607 165,702
Total Revenue 9,247,186 7,027.843 5,049,045 4,994,047 14,296,231 12,021 890
Expenses:
General government 1,361,013 1,105,741 1,361,013 1,105,741
Public safety 4,691,063 4,138,374 4,691,063 4,138,374
Transportation 656,158 804,523 656,158 804,523
Leisure Services 605,745 458,659 605,745 458,659
Interest of long -term debt 248,728 262,479 368,576 617,304 262,479
Loss on sale of capital assets 1,012,584 1,012,584
Water utility services 3,657,451 3,975,766 3,657,451 3,975,766
Stormwater services 142,788 155,537 142,788 155,537
Refuse &recycling services 260,715 252,933 260,716, 252.933
Community development
513,101 - 513,101
Total Expenses 7,562,707 - 7782,360 4,429,530 4,897,337 11,992,237 12,679,697
Change In net assets,
fore transfers 1,684,479 (754,517) 619,515 96,710 2,303,994 (657,807)
ransfers and contributions:
Transfers 710,151 (8,460) (710,151) 8,460 - _
hange In net assets 2,394,630 (762,977) (90,636) 105,170 2,303,994 (657,807)
I assets - beginning 10/01 6,320,327 6,632,704 15,827,353 15,722,183 22,147,680 22,354,887
Mustment to Beginning Net Assets 450,600
et assets - ending 9/30 $ 8,714,957 $ 6,320,327 $ 15,736,717 $ 15,827,353 $24,451,674 $22,147,680
Government -type activities:
• A key element in the increase in net assets is an increase is property taxes, which
increased $713,618, from the prior year.
a Grant revenue from governmental activities increased by $471,493 mostly as a result.
of FEMA reimbursements.
• Fees from licenses and permits increased $461,573 mostly due to increased activity in
building permit fees.
• Fines and forfeitures increased $295,694 mainly due to code enforcement fines.
• Investment earnings increased $130,197, due to rising interest rates during the year.
8
Expenses and Program Revenues - Governmental Activities
5.000.000
4.500000
4.000,000
x.500000
a,aao.000
■F■prnse
2.500.000.�Revenues
2.000.000
1.500,1940
1,000.000 4
500.000 i
Olt—
Ge Wgcwe 4 Trrayataon flubk Salely lanuue Servw«e Irdri n A an Lorin Tartu
DeUt
Revenues by Source - Governmental Activities
Fines and forfeitures
4% Miscellaneous
3%
Interest
Licenses and permits 2%
6%
Grants
Intragovernmental 6%
3 %.
Property Taxes
49%
Charges for services
5%
Franchise fees/ Other taxes
0
4 �O 1intergovernmental 12%
7%
The Village's programs include General Government, Public Safety, Transportation and
Leisure Services. The net cost shows the extent to which the Village's general taxes support
each of the Village's programs. The cost of all governmental activities this year was
$7,562,707. As shown on the Statement of Activities, those who directly benefited from the
programs paid for $1,820,922 of this cost and the remaining $5,741,785 was financed
through general revenues.
Business -type activities. The net assets of business -type activities decreased by $90,636.
The main reason for this change is the closing of Community Development (planning,
building and code enforcement) as a business -type activity (enterprise fund). All activities
9
of Community Development are now accounted for as governmental activities (within the
General fund) and $710,151 was transferred from net assets of Business -type activities to net
assets of Governmental activities.
Operating income from business -type activities increased $357,659 from the prior year.
A key reason for this increase is that Community Development, which recorded a $164,590
operating loss in the prior year, is no long accounted for as a business -type activity. Also,
The Village received $100,400 from Tropic Vista residents (this does not include amounts
recorded as capital connect fees) for costs associated with the Village supplying water.
Expenditures by Function - Business -type Activities
❑ Stormwater
Services
3%
❑ Refuse &
■ Water Utility Recycling
Services Services
91 % 6%
Revenues by Source - Business -type Activities
❑ Grants
2% ❑ Other Misc.
3%
p Unrestricted
Investment
Earnings
3%
■ Charges for
Services
92%
10
Financial Analysis of the Village's Funds
As noted earlier, the Village of Tequesta uses fund accounting to ensure and demonstrate
compliance with finance - related legal requirements.
Governmental funds. The focus of the Village's governmental fiends is to provide
information on near -term inflows, outflows, and balances of spendable resources. Such
information is useful in assessing the Village's financing requirements. In particular,
unreserved fitnd balance may serve as a useful measure of the Village's net resources
available for spending at the end of the fiscal year.
As of the end of the current fiscal year, The Village of Tequesta's governmental funds
reported combined ending fund balances $6.8 million , an increase of $1.8 million in
comparison with the prior year. Although, approximately 87% ($5,961,342) of the total
amount of fund balances constitutes unreserved fiord balance, which is available for
spending at the government's discretion, the Village has designated $1,000,000 of the
unreserved fund balance in the General Fund for Disaster Relief as well as fund balances in
the following funds for specific uses: Capital Projects ($2,315,348); Capital Improvements
($203,685) and Special Law Enforcement ($17,901). Designations reflect the Village's self -
imposed limitations on the use of otherwise available current financial resources. The
remainder of unreserved undesignated fund balance ($2.4 million) and is approximately
35.5% of total fund balances.
The General Fund is the chief operating fund of the Village. At the end of the current fiscal
year, unreserved fund balance of the general fund was $3,424,408. As a measure of the
general fund's liquidity, it may be useful to compare both unreserved fund balance and total
fund balance to total fund expenditures. Unreserved fund balance represents 45.5% of total
general fund expenditures, while total fund balance represents 46.3% of that same amount.
Compared to the prior fiscal year, total General Fund revenues increased by 2,225,011 or
33.9%. Key factors in this growth are as follows;
• Increase in property values and new construction, increased ad- valorem taxes
$713,618 (18.9 %n).
• Revenue from grants increased $471,493, which is mainly attributable to a
reimbursement grant from FEMA for hurricane expenses incurred in a prior period.
• Revenue from licenses and permits increased $461,573, which is mainly attributable
to revenues from Community Development activities which were recorded in the
General fund in fly /e September 30, 2005. In prior years Community Development
activities were recorded in and presented as a separate enterprise fund (business -type
activity).
• Investment earnings (interest) increased $130,197 due to rising interest rates.
• Fines and forfeitures increased $295,694 mainly due collection of one large fine.
11
The amount of General Fund revenue by type, their percent of the total and the amount of
change compared to last fiscal year are shown in the following schedule:
Governmental Funds Change from Prior Year
2005 % of Total % 2004
Revenues Sources
Taxes 4,494,713 51.2% 713,618 18.9% 3,781,095
her taxes (inc in taxes) 1,084,827 12.3% (4,954) -0.5% 1,089,781
ntergovernmental 622,457 7.1% 25,510 4% 596,947
barges for services 490,995 5.6% 13,482 3% 477,513
ntragovernmental 254,898 2.9% (86,802) -25% 341,700
Grants 515,438 5.9°x° 471.493 1073% 43,945
Licenses and permits 466,053 5.3% 461,573 10303% 4,480
Interest 205,865 2.3% 130,197 172% 75,668
Fines and forfeitures 350,504 4.0% 295.694 539% 54,810
sceilaneous 289,647 3.3% 206,521 248% 83,126
Impact fees 9,707 0.1% (1,321) -12% 11,028
Total Revenue 8,785,104 100% 2,225 011 33.9% 6,560,093
Revenues by Source - General Fund
02.3%- 111114.0% o
■ 3.3 /o
[35.3%
■0.1%
■ 5.9%
■ Taxes
D Intergovernmental
M Charges for Services
02.9%
fr71 ntragovernmental
y .
), ■Grants
■ 63.5% D Licenses and Permits
■ Interest
■ Fines and Forfeitures
[35.6% ■ Miscellaneous
07.1% ■ Impact Fees
12
Expenditures in the General Fund are shown in the following schedule:
General Fund Chance from Prior Year 2004
2005 of Total I %
Expe nditures
government 1,314,270 17.49% 88,720 7% 1,225,550
ublic Safety 4,343,621 57.81% 441,362 11% 3,902,259
ransportaGon 625,014 8.32% (151,259) -19% 776.273
-eisum services 523.439 6.97% 138,459 36 %. 384,980
pltal outlay 256,916 3.42% 192,017 296% 64,899
service 450,283 5.99% 11 3% 439,001
Total emenclikams 7,513,543 100% 720,501 11% 6,793.042
In fiscal year 2005, total General fund expenditures increased by $720,501 or 10.6 percent
compared to the prior year.
• The largest dollar increase in the General fund was in Public Safety expenditures. A
key element of the increase was the allocation of expenditures related to Building and
Zoning and Code Enforcement reported in the general fiord under the
function/program of Public Safety. This accounted for approximately $297,675 or
67.4% of the increase. Some other noted increases were related to costs associated
with the public safety building (insurance and maintenance) and significant increases
in overtime costs associated with extra coverage during states of emergency.
• Key changes in leisure services were; an $83,000 increase in general maintenance of
parks and $52,650 of expenses related to Hurricane Jeanne.
• The decrease in expenditures in Transportation was primarily due a decrease in
Worker's Compensations claims ($105,000).
The Special Revenue fund has a total fund balance of $294,444, which is reserved, for paying
the debt service on the Improvement Revenue Refunding Bond Series 1994.
The Capital Projects fund has a fund balance of $2,685,354 and the Capital Improvement
fund has fund balances of $362,910, which are designated for construction projects. Both the
Capital Projects and the Capital Improvement Fund are funded by transfers -in from the
General Fund. The net increase in fitnd balances during the current year in the capital
projects and capital improvement funds was $2,089,948 and is mainly the result of a transfer -
in from the General fiend ($2,711,800).
Proprietary funds: The Village's proprietary funds provide the same type of information
found in the government -wide financial statements, but in more detail.
Total net assets at the end of the year for the Water Utility Fund amounted to $13,811,555
which is an increase of $417,005 (3 %) from the prior year. Income from operations
represented 100% of this increase. Other factors concerning the finances of this major fund
have already been addressed in the discussion of the Village's business -type activities.
13
General Fund Budgetary Highlights
During the year there was a $173,663 increase in appropriations between the original and the
final amended budget.
Differences between the original budgeted expenditures and the final amended budget of
$473,333 can be briefly summarized as follows:
• ($148,195) decrease in general government
• $256,747 increase in public safety
• $123,833 increase in transportation
+ $154,554 increase in leisure services
• $86,394 increase in capital outlay
97.6% of this increase $461,816 was to be funded out of increases in various budgeted
revenues. In addition, budgeted transfers -out were increased $162,146 and budgeted from
available fund balance.
Even though these adjustments increased the original budget, actual expenditures were
$322,784 (4.2 %) below the fatal budget as follows:
+ ($162,420) in public safety
• ($106,080) in general government
• ($46,179) in transportation
• ($96,915) in leisure services
• $103,837 increase in capital outlay
Capital Assets and Debt Administration
Capital assets. The Village's capital assets for its governmental and business -type activities
as of September 30, 2005 amounts to $25,686,540 (net accumulated depreciation). These
assets include land, buildings, improvements other than buildings and machinery and
equipment. The total increase in the Village's capital assets for the current fiscal year was
7.5 percent. Following is a detail of capital assets at September 30, 2005.
Governmental Business -type Total
Activities Activities 20
Land S 402,935 $ 83,335 $ 486,270
Construction in progress 575,685 1,255,007 1,830,692
Buildings 4,767,001 979,512 5,746,513
Improvements 1,471,111 23,194,807 24,665,918
Equipment 3.064.326 _ 982.908 4.047.234
Total capital assets 10,281,058 26,495,569 36,776,627
Less ace. depreciation (2,864,596) ($ ,225,491) (11.090.087)
Total capital assets, net $ 7.416.462 $ 18.2 70078
14
Additional information on the Village's capital assets can be found in Note 7, Capital Assets,
starting on. page 37 of this report.
Long -term Debt. At the end of the current fiscal year, the Village had no bonded debt. All
of the Village's outstanding debt is secured by specified revenue sources.
Village of Tequesta's Outstanding Debt
Governmental Business -type
Activities Activities Total
2005 2004 2005 2004 2005 2004
Revenue Bonds, net $ 490,000 $ 595,000 $ 6,930,075 $ 7,091,165 $ 7,420,075 $ 7,686,165
Notes payable 4,493,579 4,669,648 524,852 645,170 5,018,431 5,314,818
Capital leases 461,032 363,065 461,032 363,065
Compensated Absences 364,870 339,490 128,630 117,798 493,500 457,288
$ 5,809,481 $ 5,967,203 $ 7,583,557 $ 7,854,133 $ 13,393,038 $ 13,821,336
During the current fiscal year, the Village's net outstanding debt, decreased by $428,298
(3 %). Additional information on the Village's long -term debt can be found in Note 9. Long
Term Debt starting on page 40 of this report
Economic Factor and Next Year's Budgets and Rates
• The unemployment rate for the Village of Tequesta is currently 3.1 percent, which is
a decrease from a rate of 5.7 percent a year ago.
• Inflationary trends in the region compare favorable to national indices
• Property values have continued to increase and it is expected that there will be no
need to raise taxes during the 2006 fiscal year.
• All of these factors were considered in preparing the Village of Tequesta's budget for
the 2006 fiscal year.
The Village of Tequesta's water rates are changed each year based on calculations detailed in
the Village's Code of Ordinances. Based on these calculations the water rates were increased
2.25% on October 1, 2005.
Requests for Information
This financial report is designed to provide a general overview of the Village of Tequesta's
finances for all those with an interest in the government's finances. Questions concerning
any of the information provided in this report or requests for additional financial information
should be addressed to the Village of Tequesta, Finance Office, 250 Tequesta Drive, Suite
304, Tequesta, Florida 33469
15
Page Intentionally Left Blank
BASIC FINANCIAL STATEMENTS
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2005
Business-
Governmental type
Activities Activities Total
ASSET
Cash and cash equivalents $ 431,390 $ 29,074 $ . 460,464
Investments 7,117,543 4,579,626 11,697,169
Receivables, net 247,096 472,648 719,744
Inventories 26,077 13,251 39,328
Due from pension funds 300 - 300
Restricted assets:
Investments - 617,981 617,981
Net pension asset 266,200 - 266,200
Other assets 17,839 174,182 192,021
Capital assets not being depreciated 978,620 1,338,342 2,316,962
Capital assets being depreciated, net 6,437,842 16 ,931,7 36 23,369,578
Total assets 15,522,907 24,156,840 39,679,747
LIABILITIES
Liabilities:
Accounts payable 378,731 337,719 716,450 .
Retainage payable 22,294 69,726 92,020
Accrued liabilities 144,052 68,360 212,412
Deposits - 300,878 300,878
Due to other governments 8,268 - 8,268
Other current liabilities 34,721 59,884 94,605
Unearned revenue 410,403 - 410,403
Non - current liabilities:
Due within one year 379,195 195,500 574,695
Due in more than one year 5,430,286 _ 7,388,057 _ 12,818,343
Total liabilities 6,807,950 8,420,124 15,228,074
NET ASSETS
Invested in capital assets, net of related debt 1,788,749 10,815,151 12,603,900
Restricted for debt service - 317,102 317,102
Unrestricted 6,926,208 4,604,463 11,530,671
Total net assets $ 8,714,957 $ 15,736,716 $ 24,451,673
See notes to basic financial statements.
-16-
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED SEPTEMBER 30, 2005
Net (Expense) Revenue and
Pro&= Revenues Changes in Net Assets
Charges Operating Capital Business-
for Grants and Grants and Governmental type
Functions/Programs E=nseg Servic es Contributions Contributions Activiti es tivitie Tall
Governmental activities:
General government . S 1,361,013 $ 260,647 S - S $ (1,100,366) S - $ (1,100,366)
Transportation 656,158 - 497,630 - (158,528) - (158,528)
Public safety 4,691,063 1,040,427 17,808 - (3,632,828) - (3,632,828)
Leisure services 605,745 4,410 - - (601,335) - (601,335)
Interest on long term debt 248,728 - - (248,728) (248,728)
Total governmental activities 7,562,707 1,305,484 515,438 - (5,741,785) -(5,741,785)
Business -type activities:
Water 4,026,027 4,037,674 - 119,944 - 13I,591 131,591
Other enterprise activities 403,503 575,777 - - - 172,274 172,274
Total business -type activities 4,429,530 4,613,451 - 119,944 303,865 303,865
Total S 11,992,237 S 5,918,935 S 515,438 S 119,944 (5,741,785) 303,865 (5,437,920)
General revenues:
Ad valorem taxes 4,494,713 - 4,494,713
Other taxes 1,084,827 - 1
Franchise fees based on gross receipts 367,778 - 367,778
Unrestricted intergovernmental 622,457 - 622,457
Fine and forfeitures 352,254 - 352,254
Unrestricted investment earnings 214,588 164,163 378,751
Miscellaneous revenues 289,647 151,487 441,134
Transfers 710,151 (710,151}
Total general revenues 8,136,415 (394,501) 7,741914
Change in net assets 2,394,630 (90,636) 2,303,994
Net assets, beginning, as restated 6,320,327 15,827,352 22,147,679
Net assets, ending S 8,714,957 S 15,736,716 S 24,451,673
See notes to basic financial statements.
-17-
VILLAGE OlF TEQUESTA, FLORIDA
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2005
Capital Other Total
Projects Governmental Governmental
General Fund Funds Funds
ASSETS
Cash and cash equivalents $ 318,982 $ - $ 112,408 $ 431,390
Investments 3,716,663 2,832,321 568,559 7,117,543.
Receivables, net 206,493 - 40,603 247,096
Inventories 26,077 - - 26,077
Due from pension funds 300 - - 300
Other assets 17,839 - - 17,839
Total assets $ 4,286,354 $ 2,832,321 $ 721,570 $ 7,840,245
LIABILTI'IES AND FUND BALANCES
Liabilities:
Accounts payable $ 254,058 $ 124,673 $ - $ 378,731
Retainage payable - 22,294 - 22,294
Accreted liabilities 144,052 - - 144,052
Due to other governments 8,268 - - 8,268.
Other current liabilities 34,721 - - 34,721
Deferred revenue 364,088 - 46,315 410,403
Total liabilities 805,187 146,967 46,315 998,469
Fund balances:
Reserved for
Inventories 26,077 - - 26,077
Encumbrances 30,682 370,006 159,225 559,913
Debt service - - 294,444 294,444
Unreserved, reported in:
General fund:
Designated for disaster relief 1 - - 11000,000
Capital Projects Fund - 2,315,348 - 2,315,348
Special Law Enforcement Fund - - 17,901 17,901
Capital Improvements Fund - - 203,685 203,685
General Fund - undesignated 2,424,408 - - 2,424,408
Total fund balances 3,481,167 2,685,354 675,255 6,841,776
Total liabilities and fund balances $4,286,354 $2,832,321 $ 721,570
Amounts reported for governmental activities in the .
statement of net assets are different because:
Capital assets used in'govemmental activities are not financial resources and,
therefore, are not reported in the funds. 7,416,462
Net pension asset is not considered to represent a financial asset and therefore
is not reported in the governmental funds 266,200
Long -term liabilities, including bonds payable, not due and payable in the current
period and therefore are not reported in the funds (5,809,481
Net assets of governmental activities $ 8,714,957
See notes to basic financial statements.
-18-
V•iLLAGE OF TEQUESTA, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES M FUND BALANCES
GOVERNMENTAL FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2005
Capital Other Total
Projects Governmental Goverunental
General Fund Funds Funds
Revenues:
Ad valorem taxes $ 4,494,713 S - $ - $ 4,494,713
Other taxes 1,084,827 - - 1,084,827
Intergovernmental 622,457 - - 622,457
Franchise fees based on gross receipts - - 367,778 367,778
Charges for services 490,995 - - 490,995` .
Intrrgovenunental 254,898 - - 254,898
Grants 515,438 - - 515,438
Licenses and permits 466,053 - 83,831 549,884.
Interest 205,865 - 8,723 214,588
Fines and forfeitures 350,504 - 1,750 352,254
Miscellaneous 289,647 - - 289,647
Impact fees 9,707 - - 9,707
Total revenues 8,785,104 - 462,082 9,247,186
Expenditures:
Current:
General government 1,314,270 - - 1,314,270.
Public safety 4,343,621 8,315 - 4,351,936
Transportation 625,014 - - 625,014
Leisure services 523,439 - - 523,439
Capital outlay 256,916 601,987 11,550 870,453
Debt service:
Principal 231,101 - 105,000 336,101
Interest 212,238 - 36,490 248,728
Fiscal charges 6,944 - - 6,944
Total expenditures 7,513,543 610,302 153,040 8,276,885
Excess (deficiency) of revenues
over expenditures 1,271,561 610,302 309,042 970,301
Other financing sources (uses):
Transfers in 999,517 2,711,800 60,300 3,771,617
Transfers out (2,711,800) - (357,040) (3,068,840)
Proceeds from capital leases 152,999 - - 152
Total other financing sources (uses) (1 2,711,800 (296,740) 855,776
Net change in fund balances (287,723) 2,101,498 12,302 1,826,077
Fund balances, beginning 3,768,890 583,856 662,953 5,015,699
Fund balances, ending $ 3,481,167 $ 2,685,354 S 675,255 $ 6,841,776
See notes to basic financial statements.
-19-
VILLAGE OF TEQUESTA, ]FLORIDA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED SEPTEMBER 30, 2005
Amounts reported for governmental activities in the statement of activities
(Page 17) are different because:
Net change in fund balances - total governmental funds (Page 19) $1,826,077
Governmental funds report capital outlays as expenditures. However, in the
statement of activities, the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense. This is the
amount by which capital outlays exceeded depreciation in the current period.
The details of the difference are as follows:
Capital outlay 868,528
Depreciation expense 459,642
Net adjustment 408,886
The issuance of long -term debt provides current financial resources to
governmental funds, while the repayment of the principal of long -term
debt consumes the current financial resources of governmental funds.
The detail of the differences are as follows:
Capital lease proceeds (152,999)
Principal payments:
1994 revenue bonds 105,000
Notes payable 176,068
Capital leases 55,034
Net adjustment 183,103
Some expenses reported in the statement of activities do not require the
use of current financial resources and, therefore, are not reported as
expenditures in governmental funds:
The details of the difference are as follows:
Compensated absences (25,380)
Net pension expenses (5,430)
Change in net assets of governmental activities (Page 17) $2,387,256
See notes to basic financial statements.
-20-
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2005
Business -type Activities
Water Nonmajor
Fund Funds Totals
ASSETS
Current assets:
Cash and cash equivalents $ 28,494 $ 580 $ 29,074
Investments 3,948,217 631,409 4,579,626
Accounts receivable, net 464,911 7,737 472,648
Inventories 13,251 - 13,251
Other assets 174,167 15 174,182
Restricted assets:
Investments 617,981 - 617,981
Total current assets 5,247,021 639,741 5,886,762
Non - current assets:
Capital assets not being depreciated 1,330,170 8,172 1,338,342
Capital assets being depreciated 15,582,366 1,349,370 16,931,736
Total non - current assets 16,912,536 1,357,542 18,270,078 .
Total assets 22,159,557 1,997,283 24,156,840
LIABILITIES AND NET ASSETS
Current liabilities:
Accounts payable 267,071 70,648 337,719
Accrued liabilities 67,102 1,258 68,360
Retainage payable 69,726 - 69,726
Other current liabilities 59,921 - 59,921
Current maturities of long -term debt 190,000 - 190,000
Current portion of compensated absences 5,500 1 5,500
Deposits 300,878 - 300,878
Total current liabilities 960,198 71,906 1,032,104
Long -term liabilities:
1998 revenue -bond payable, net of
current maturities 6,760,075 - 6,760,075.
Notes payable, tong -term portion 504,852 - 504,852
Compensated absences 122,877 253 123,130
Total long -tern liabilities 7,387,804 253 7,388,057
Total liabilities 8,348,002 72,159 8,420,161
Net assets:
Invested in capital assets, net of related debt 9,457,609 1,357,542 10,815,151
Restricted 317,102 - 317,102
Unrestricted 4,036,844 567,619 4,604,463
Total net assets $13,811,555 $1,925,161 $15,736,716
See notes to basic financial statements.
-21-
VILLAGE OF TEQuESTA, FLORIDA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
PROPRIETARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2005
Business-type Activities
Water Nonmajor
Fund Funds To tau
Operating revenues:
Charges for services $ 4,037,674 $ 575,777 $ 4,613,451.
Intergovernmental revenue 119,944 - 119,944
Total operating revenues 4,157,618 575,777 4,733,395
Operating expenses:
Personnel services 973,431 27,100 1,000,531
Purchased services 678,764 255,615 934,379
Depreciation 756,223 64,694 820,917
Repairs and maintenance 290,086 - 290,086
Management services 241,230 5,100 246,330
Contractual services 110,225 597 110,822
Professional services 55,887 50,397 106,284
utilities 257,683 - 257,683
Operating supplies 124,866 - 124,866
Other 78,714 - 78,714
lnsurarice 58,999 - 58,999
Office supplies 29,046 - 29,046..
Travel and per diem 2,297 - 2,297
Total operating expenses 3,657,45I 403,503 4,060,954
Operating income 500,167 172,274 672,441
Non -operating revenues (expenses):
Miscellaneous revenue 141,555 9,932 151,487
Investment income 143,859 20,304 164,163,
Interest expense (368,576) - (368,576)
Total non -operating revenues (expenses) (83 30,236 (52,926)
Income before transfers 417,005 202,510 619,515
Transfers in
Transfers out - 710,151 _ (710,151)
Change in net assets 417,005 (507,641) (90,636)
Net assets, beginning 13,394,550 2,432,802 15,827,352
Net assets, ending $ 13,811,555 $ 1925,161 $ 15 736,716
See notes to basic financial statements.
-22-
VILLAGE OF TwESTA, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2005
Business -type Activities
Water Nonmajor
Fund Funds Totals
Cash flows from operating activities:
Cash received from customers, governments and other funds $ 4,001,973 $ 574,632 $ 4,576,605 .
Cash paid to suppliers (1,672,849) (292,892) (1,965,741)
Cash paid to employees 993,958 26,748 1 020,7
Net cash provided by operating activities 1,335,166 254,992 1,590,158
Cash flows from non - capital financing activities:
Transfers to other funds - 717,525 717,525
Net cash used in non - capital financing activities - 17,525 (717,525
Cash flows from capital and related financing activities:
Acquisition and construction of fixed assets (1,698,315) (60,808) (1,759,123)
Principal payments (294,303) - (294,303)
Interest paid 369,662 - (369,662
Net cash used in capital and related financing activities 2,362,280 60,808 2,423,088
Cash flows from investing activities:
Purchases of investments 584,476 477,801 1,062,277
Interest received on investments 143,859 20,304 164,163
Net cash provided by (used in) investing activities 728,335 498,105 1,226,440
Net (decrease) increase in cash and cash equivalents (298,779) (25,236) (324,015)
Cash and cash equivalents, beginning 327,273 _ 25,816 353,089
Cash and cash equivalents, ending $ 28,494 $ 580 $ 29,074
Adjustments to reconcile operating income to net cash provided
by operating activities:
Operating income $ 500,167 $ 172,274 $ 672,441.
Miscellaneous revenue 141,555 9,932 151,487
Depreciation and amortization 756,223 64,694 820,917
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable (10,618) (1,345) (11,963)
Inventories 6,450 (14) 6,436
Other assets 4,833 19,182 24,015
Increase (decrease) in
Accounts payable (68,439) (8,457) (76,896)
Accrued liabilities (987) - (987)
Deferred revenue (29,870) (1,274) (31,144)
Compensated absences 20,527 - 20,527
Customer deposits 15,922 - 15,922
Due to other funds (597) - 597
Net cash provided by operating activities $ 1,335,166 $ 254,992 $ 1,590,158
See notes to basic financial statements.
-23-
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
SEPTEMBER 30, 2005
Pension
Trust.
Funds
ASSETS
Cash and cash equivalents $ 157,437
Investments, at fair value:
Corporate stocks 1,940 103
Corporate bonds 55,511
Government backed assets 1,306,344
Contribution receivable 30,380
Total assets 3,489,775
LIABILITIES AND NET ASSETS
Due to other funds 300
Accounts payable 6,722
Total liabilities 7,622'
Net assets held in trust for pension benefits $3,482,753
See notes to basic financial statements.
-24-
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2005
Pension
Trust
ADDITIONS Funds
Contributions:
Employer $ 262,732
Employee 139,845,
State 158,222
Total contributions 560,799
Investment income
Net appreciation in fair value of investments 138,343
Investment earnings 84,517
222,860
Less investment expenses 24,443
Net investment income 198,417
Total additions 759,216
DEDUCTIONS
Pension benefits 75,627
Operating expenses 28,247
Total deductions 103,874
Net increase 655,342
Net assets held in trust for pension benefits:
Net assets, beginning 2,827,411
Net assets, ending $ 3,482,753
See notes to basic financial statements.
-25-
NOTES TO BASIC FINANCIAL STATEMENTS
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2005
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Village of Tequesta, Florida is a municipal corporation organized in 1957 pursuant to Special
Act 57 -1915, Laws of Florida. The Village has a Council- Manager form of government. The
Village's major operations include public safety (police, fire rescue/EMS), streets and roads,
culture and recreation, public improvements, planning and zoning, water, stormwater, recycling
services and general and administrative. The financial statements of the Village have been
prepared in conformity with accounting principles generally accepted in the United States
(GAAP) as applied to governmental units. The Governmental Accounting Standards Board
(GASB) is the accepted standard - setting body for establishing governmental and financial
reporting principles. The more significant of the Village's accounting policies are described
below:
a. The Financial Reporting Entity
The financial statements were prepared in accordance with government accounting standards,
which establishes standards for defining and reporting on the financial reporting entity. The
definition of the financial reporting entity is based upon the concept that elected officials are
accountable to their constituents for their actions. One of the objectives of financial reporting
is to provide users of financial statements with a basis for assessing the accountability of the
elected officials. The financial reporting entity consists of the Village, organizations for which
the Village is financially accountable and other organizations for which the nature and
significance of their relationship with the Village are such that exclusion would cause the
reporting entity's financial statements to be misleading or incomplete. The Village is
financially accountable for a component unit if it appoints a voting majority of the
organization's governing board and it is able to impose its will on that organization or there is
a potential for the organization to provide specific financial benefits to, or impose specific
financial burdens on, the Village.
Based upon the application of these criteria, the Village Employees' Retirement System (the
Retirement System) meets the criteria described above and has been included in the
accompanying financial statements. The Retirement System functions for the benefit of the
employees and is governed by. a seven member board, of which the Village Council appoints
three members. The Village and Retirement System members are obligated to fund all
Retirement System costs based upon actuarial valuations. The Village funds the difference
between member and other contributions and the actuarial cost. Considering these factors, it
has been determined that the Retirement System is fiscally dependent on the Village, which
makes the Retirement System a component unit of the Village. Since the Retirement System
provides services exclusively for the benefit of the Village, the Retirement System is reported
as a blended component unit, specifically as the Village Employees' Retirement System. The
Village Employees' Retirement System administers the following Plans: The General
Employees' Pension Trust Fund, which does not issue a stand alone financial report, and The
Public Safety Officers' Pension Trust Fund which consists of The Firefighters' Pension Trust
Fund, and The Police Officers' Pension Trust Fund. The Public Safety Officers' Pension.
Trust Fund does not issue a stand atone financial report.
-26-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
b. Government -Wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net assets and the statement
of activities) report information on all of the non - fiduciary activities of the Village. For the
most part, the effect of interfund activity has been removed from these statements.
Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business -type activities, which rely to a significant
extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or
segment. Taxes and other items not properly included among program revenues are reported
instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government -wide financial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements. All remaining nonmajor
governmental funds or proprietary funds are aggregated and reported as other governmental or
other proprietary funds.
c. Measurement Focus, Basis of Accounting and Basis of Presentation
The government -wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and
fiduciary fund financial statements. Revenues are recorded when earned and expenses are
recorded when a liability is incurred, regardless of the timing of related cash flows. Property
taxes are recognized as revenues in the year for which they are levied. Grants and similar
items are recognized as revenue as soon as all eligibility requirements imposed by the provider
have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
- soon as they are both measurable and available. Revenues are considered to be available
when they are collectible within the current period or soon enough thereafter to pay liabilities
of the current period. For this purpose, the Village considers revenues to be available if they
are collected within 60 days of the end of the current fiscal period. Expenditures are recorded
when a liability is incurred, as under accrual accounting. However, debt servicc expenditures,
as well as expenditures related to compensated absences and claims and judgments, are
recorded only when payment is due.
-27-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
c. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
Property taxes, fianchise fees and other taxes, licenses, and interest associated with the current
fiscal period are all considered to be susceptible to accrual and so have been recognized as
revenues of the current fiscal period. All other revenue items are considered to be measurable
and available only when cash is received by the Village.
The Village reports the following major governmental funds:
The General Fund is the Village's primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another
fund.
The Capital Projects Fund accounts for the acquisition or construction of various major
capital projects.
The Village also reports the following nonmajor government funds:
The Special Revenue Fund accounts for revenue sources that are legally restricted to
expenditures for specific resources. The Special Revenue Fund accumulates revenues as
required by the Improvement Revenue Refunding Bonds, Series 1994. These revenues
include franchise fees and occupational licenses.
The Special Law Enforcement Fund accounts for forfeitures received by the Police
Department. The forfeitures must be expended for certain law enforcement purposes as
prescribed by Florida Statue Chapter 932.704.
The Capital Improvement Fund is used to account for the maintenance and upkeep of
the Village's general infrastructure (such as roads, bridges, sidewalks and storm
water drainage systems) and streetseape beautification projects.
The Village reports the following major proprietary funds:
The Water Fund is used to account for the activities of the water operations.
The Village also reports the following nonmajor proprietary funds:
The Stormwater Utility Fund accounts for the construction and maintenance of the
Village's stormwater system
The Refuse and Recycling Fund is used to account for the fees charged for solid waste and
recyclable material collection.
-28-
VILLAGE OF T EQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICYES (Continued)
c- Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
Additionally, the Village reports the following fiduciary funds:
The Firefighters' Pension Trust Fund accounts for the accumulation of resources and for
contributions and benefits of the firefighter employees.
The Police Officers' Pension Trust Fund accounts for the accumulation of resources and
for contributions and benefits of the police employees.
The General Employees' Trust Fund accounts for the accumulation of resources and for
contributions and benefits for the general employees of the Village.
Private- sector standards of accounting and financial reporting issued prior to December 1,
1989, generally are followed in both the government -wide and proprietary fund financial
statements to the extent that those standards do not conflict with or contradict guidance of the
Governmental Accounting Standards Board. The Village has the option of following
subsequent private - sector guidance for their business -type activities and enterprise funds,
subject to this same limitation. The Village has elected not to follow subsequent private -
sector guidance.
As a general rule, the effect of interfund activity has been eliminated from the government
wide financial statements. Exceptions to this general rule are payments -in -lieu of taxes and
other charges between the Village's various utility functions and various other functions of the
Village. Elimination of these charges would distort the direct costs and program revenues
reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for
goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital
grants and contributions. Internally dedicated resources are reported as general revenues
rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non- operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The
principal operating revenues of the Village's water utility, stormwater utility and solid waste
services funds are charges to customers for services. Operating expenses for proprietary funds
include the costs of services, administrative expenses, and depreciation on capital assets. All
revenues and expenses not meeting this definition are reported as nonoperating revenues and
expenses.
When both restricted and unrestricted resources are available for use, it is the Village's policy
to use restricted resources first; then unrestricted resources as they are needed.
-29-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
d. Assets, Liabilities, and Net Assets or Equity
1. Deposits and Investments
The Village's cash and cash equivalents include cash on hand, time and demand deposits,
and short -term investments with original maturities of three months or less from the date of
acquisition and investments with the State Board Investment Pool.
Short -term investments, except the State Board Investment Pool, are reported at cost,
which approximates fair value. The investment Pool is recorded at its value of the pool
shares (2A -7 Pool) which is fair value.
The nature of investments is governed by the provisions of Florida Statutes Section 218.
Under this statute, authorized investments are limited, unless otherwise authorized by law
or ordinance, to the local government surplus funds trust fund, money market funds, direct
or unconditionally guaranteed obligations of the United States Government, obligations of
certain governmental agencies, interest bearing time deposits or savings accounts.
2. Receivables and Payables
Activities between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as "due to /from other funds ". Any
residual balances outstanding between the governmental activities and business -type
activities are reported in the government -wide financial statements as "internal balances."
3. Inventories
Inventories of the general fund are valued at cost on a first -in, first -out (FIFO) method.
Inventories consist of expendable supplies held for consumption. The cost is recorded as
an expenditure at the time individual inventory items are purchased.
Inventories of the Water Fund are valued at lower of cost (determined using the weighted
average) or market and consist of pipes, valves, fittings and meters. The cost is recorded as
an expenditure at the time individual inventory items are put into service.
4. Capital Assets
Capital assets, which include property, plant and equipment, and certain infrastructure
assets acquired prior to the implementation of GASB 34, (e.g., utility plant, roads, bridges,
sidewalks, and similar items), are reported in the applicable governmental or business -type
activities columns in the government -wide financial statements. In the case of the initial
capitalization of general infrastructure assets (i.e. those reported by governmental
activities) the Village chose to include all such items regardless of their acquisition date.
The Village was able to estimate the historical cost for the initial reporting of these assets
through analyzing prior audited financial statements, notes to the audited financial statements
and year end workpaper files. Capital assets are defined by the Village as assets with an
-30-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUN'T'ING POLICIES (Continued)
d. Assets, Liabilities, and Net Assets or Equity (Continued)
4. Capital Assets (Continued)
initial, individual cost of more than $1,000 and an estimated useful life in excess of one
year. Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at estimated fair market value at the date
of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend assets lives are not capitalized. Major outlays for capital assets and
improvements are capitalized as projects are constructed. Interest incurred during the
construction phase of capital assets of business -type activities is included as part of the
capitalized value of the asset constructed. Approximately $26,000 of interest expense was
capitalized in 2005.
Capital assets of the Village are depreciated using the straight line method over the
following estimated useful lives:
Buildings 20 — 40 years
Improvements 20 — 30 years
Equipment 3 —10 years
GASB Statement No. 34 allows municipalities a four year period from the date of
implementation to record the various components of infrastructure assets. The Village
capitalizes current year additions only.
5. Compensated Absences
It is the Village's policy to permit employees to accumulate within certain limits, earned
but unused vacation time and sick leave, which will be paid to employees upon separation
from Village service. All vacation and sick leave pay is accrued when incurred in the
govemment -wide and proprietary fund financial statements. In the governmental funds, a
liability is recorded only for unused vacation and sick leave payouts for employees who
have separated, for example, as a result of employee resignations and retirements. For the
governmental funds, compensated absences are liquidated by the general fund.
6. Long -Term Obligations
In the government -wide financial statements, and proprietary fund types in the fiord financial
statements, long -term debt and other long -term obligations are reported as liabilities in the
applicable governmental activities, business -type activities, or proprietary fiord type
statement of net assets.. Bond premiums and discounts, as well as issuance costs, are deferred
and amortized over the life of the bonds using the straight -line amortization method. The
result of using this method does not differ significantly from the effective interest method
Bonds payable are reported net of the applicable bond premium or discount.
-31-
VILLAGE OF TEQUESTA, ]FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
d. Assets, Liabilities, and Net Assets or Equity (Continued)
6. Long -Term Obligations (Continued)
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of
debt issued is reported as other financing sources. Premiums received on debt issuances
are reported as other financing sources while discounts on debt issuances are reported as
other financing uses. Issuance costs, whether or not withheld from the actual debt
proceeds received, are reported as debt service expenditures.
7. Use of Estimates
The financial statements and related disclosures are prepared in conformity with
accounting principles generally accepted in the United States. Management is required to
make estimates and assumptions that affect the reported amounts of assets and liabilities,
the disclosure of contingent assets and liabilities at the date of the financial statements and
revenue and expenses during the period reported. These estimates include assessing
collectibility of accounts receivable, the pension obligations, and useful lives and
impairment of tangible assets, among others. Estimates and assumptions are reviewed
periodically and the effects of revisions are reflected in the financial statements in the
period they are determined to be necessary. Actual results may differ from those estimates.
8. Fund Equity
In the fund financial statements, governmental funds report reservations of fund balance
for amounts that are not available for appropriation or are legally restricted by outside
parties for use for a specific purpose. Designations of fund balance, where noted, represent
tentative management plans that are subject to change.
NOTE 2. PROPERTY TAXES
Ad valorem taxes are assessed and liened as of January I' and billed the following October.
They are due and r :., able on November I' of each year or as soon thereafter as the assessment
roll is certified and delivered to the Tax Collector. These taxes are collected by the County and
remitted to the Village. Revenue is recognized at the time monies are received from the County.
All unpaid taxes become delinquent on April I following the year in which they are assessed.
Discounts are allowed for early payment at the rate of 4% in the month of November, 3% in the
month of December, 2% in the month of January and 1% in the month of February. The taxes
paid in March are without discount. At September 30` unpaid delinquent taxes, if any, are
reflected as a receivable on the balance sheet.
-32-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 2. PROPERTY TAXES (Continued)
Assessed values are established by the Palm Beach County Property Appraiser at approximately
fair market value. The assessed value of property at January 1, 2004, upon which the 2004 -2005
levy was based, was approximately $716 million.
Under Florida law, the assessment of all properties and the collection of all county, municipal,
school district and special district property taxes are consolidated in the offices of the County
Property Appraiser and County Tax Collector. The Village is permitted by Article 7, Section 8 of
the Florida Constitution to levy taxes up to $10 (10 mills) per $1,000 of assessed valuation for
general governmental services (other than the payment of principal and interest on general
obligation long -term debt). In addition, unlimited amounts may be levied for the payment of
principal and interest on general obligation long -term debt, subject to a limitation on the amount
of debt outstanding. The millage rate to finance general governmental services for the year ended
September 30, 2005 was 6.4980 mills per $1,000 of assessed valuation. There were no material
delinquent property taxes at September 30, 2005.
NOTE 3. DEPOSITS AND INVESTMENTS
In March 2003, the GASB issued Statement No. 40 Deposits and Investment Risks Disclosures
(GASB Statement No. 40), which amends GASB No. 3, Deposits with Financial Institutions,
Investments (including Repurchase Agreements), and Reverse Purchase Agreements and
addresses additional risks to which governments are exposed. GASB 40 is designed to inform
financial statement users about deposit and investment risks that could affect a government's
ability to provide services and meets its obligations as they become due.
GASB 40 addresses common deposit and investment risks related to credit risk, custodial credit
risk, concentration of credit risk, interest rate risk, and foreign currency risk and requires that
deposit and investment policies related to the risks be disclosed, as applicable.
This statement is effective for financial statements for periods beginning after June 15, 2004, and
has been adopted for the fiscal year ended September 30, 2005. The adoption of GASB 40 has
resulted in changes to the form and content of the deposit and investment notes to the financial
statements and did not have an impact on the Village's financial position and results of
operations. The following disclosure represents the adoption of GASB, 40:
Deposits
In addition to insurance provided by the Federal Depository Insurance Corporation, deposits
are held in qualified public depositories pursuant to Florida Statutes, Chapter 280, Florida
Security for Public Deposits Act. Under the Act, all qualified public depositories are required
to pledge eligible collateral with the Treasurer or another banking institution. In the event of a
failure of a qualified public depository, the remaining public depositories would be
responsible for covering any resulting losses. Accordingly, all deposits are considered insured
or collateralized with securities held by the entity or it's agent in the entity's name.
-33-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 3. DEPOSITS AND INVESTMENTS (Continued)
Investments
Florida Statutes authorize the Village to invest surplus funds in the Local Government Surplus
Funds Trust Fund, 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 consist of the Local Government Surplus Funds Trust Fund administered by State
Board of Administration and investments held by the Village's retirement funds. The Local
Government Surplus Funds Trust Fund is governed by Ch. 19 -7 of the Florida Administrative
Code, which identifies the Rules of the State Board of Administration. These rules provide
guidance and establish the general operating procedures for the administration of the Local.
Government Surplus Funds Trust Fund. Additionally, the Office of the Auditor General
performs the operational audit of the activities and investments of the State Board of
Administration. The Local Government Surplus Funds Trust Fund is not a registrant with the
Securities and Exchange Commission (SEC); however, the funds have adopted operating
procedures consistent with the requirements for a 2a -7 fund.
At year end, the Village's investment balances were as follows:
Investment Maturity
(In Years)
Less than
Fair Value 1 Year 1 -5 Years
Retirement plan corporate bonds $ 55,510 $ - $ 55,510
Retirement plan U.S. Agencies 1,025,370 - 1,025,370
Retirement plan U.S. Treasuries 280,992 - 280,992
$1,361,872 $ - $ 1,361,872
Interest Rate Risk. The Village does not have a formal investment policy that limits
investment maturities as a means of managing its exposure to market value losses arising from
increasing interest rates. The Village Pension Board of Trustees has an investment policy to
obtain a reasonable total rate of return to commensurate with the Prudent Investor Rule and
any other applicable statute. The Pension Board employs a professional Investment Manager
to invest the assets of the funds. Within the parameter allowed by the Prudent Investor Rule,
the asset allocation of the funds is solely at the Investment Manager's discretion, including
sector weightings and investment style. Additionally, the Board of Trustees retain a
monitoring service to evaluate and report on a quarterly basis the rate of return and relative
performance of the Funds.
The state investment pool, administered by the State Board of Administration of Florida,
contained certain floating rate notes during the fiscal year and at September 30, 2005, which
were indexed based on the prime rate and/or one and three month LIBOR rates.
-34-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 3. DEPOSITS AND EWESTMENTS (Continued)
Investments (Continued)
Credit Risk. The SBA pool is not rated, and therefore no credit ratings are available for this
investment or the government market fund. All corporate bonds and agency bonds were
ranked "Aaa" under Moody's ratings.
Concentration of Credit Risk. The Pension Board investment policy does not allow for an
investment in any one issuer that is in excess of five percent of total assets, nor shall the
aggregate exceed five percent of the outstanding capital stock of the issuer.
Custodial Credit Risk -- Investments. For an investment, this is the risk that in the event of the
failure of the counter party, the Village will not be able to recover the value of the investments
or collateral securities that are in the possession of an outside party. At September 30, 2005,
the General Employees' Pension Trust Fund had custodial credit risk of all investments due to
the absence of a third party custodian of the investments. Held in street name were the
following investments: U.S. Treasuries — $25,627, U.S. Agencies — $205,876, and Corporate
Stocks — $341,736. This risk was subsequently eliminated in October 2005 when a custodial
agreement was entered into with a qualified depositor and all assets were transferred to an
account in the name of the General Employees' Pension Trust Fund.
NOTE 4. RECEIVABLES
Receivables at September 30, 2005 for the government's individual major funds, nonmajor and
fiduciary fund in the aggregate, including the applicable allowance for uncollectible accounts, are
as follows:
Nonmajor Pension
and Other Trust
General Water Funds Funds Total
Customers billed $ 91,717 $ 364,789 $ 7,737 $ - $ 464,243
Other taxes 134,668 - - - 134,668
Miscellaneous 6,846 100,060 - 30,380 137,286
Employees 1,643 - - - 1,643
Intergovernmental 3,098 4,562 - - 7,660
Franchise fees - - 40,603 - 40,603
Gross receivables 237,972 469,411 48,340 30,380 786,103
Less allowance for uncollectibles 31,479 4,500 - - 35,979
Net total receivables $ 206,493 $ 464,911 $ 48,340 $ 30,380 $ 750,124
-35-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 4. RECEIVABLES (Continued)
At the end of the current fiscal year, various components of deferred revenuetuneamed revenue
reported in the governmental funds were as follows:
Prepayments on Sprint lease (general fund) $ 25,484
Prepayments on T- Mobile lease (general fund) 121,548
Prepayments on Nextel lease (general fund) 186,820
Advance receipts for special events (general fund) 27,518
Disaster relief (general fund) 851
Licenses and registrations not yet due (general fund) 1,867
Licenses and registrations not yet due (special revenue fund) 46,315
$ 410,403
NOTE 5. INTERFUND RECEIVABLES, PA'YABLES AND TRANSFERS
The composition of interfund balances as of September 30, 2005 is as follows:
Receivable Fun-d_ Payable Fund
Fire Employees Pension General $ 300
Outstanding balances between funds are the result of timing differences between the dates that (1)
interfund goods and services are provided or reimbursable expenditures occur, (2) transactions
are recorded in the accounting system, or (3) payments between funds are made.
Interfund transfers during the year ended September 30, 2005 are as follows:
Transfers
Capital Nonmajor
General Projects Governmental
Transfers Out Fund Fund Fund Total
Nonmajor governmental $ 357,040 $ - $ - $ 357,040
General .fund - 2,711,800 - 2,711,800
Community development 642,477 - - 642,477
Stormwater utility - - 60,300 60,300
Total $ 999,517 $ 2,711,800 $ 60,300 $3, 771,617
Transfers are used to (1) move excess revenues from special revenue fund as required by bond
covenants, (2) move revenues from the fund with collection authorization to the fund where debt
service principal and interest become due, (3) transfers to close the community development fund
to be reported in the general fiord, (4) $7,374, representing the book value of capital assets, was
transferred out of the Community Development business type fund to government type asset
account. This transfer in was recorded to close out the Community Development fund and the
transfer in is not reported on a fund basis, but is reported on a government -wide basis and as
addition to total capital assets.
-36-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE S. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (Continued)
Interjund Adnrinistratipe Fee
During the year ended September 30, 2005, the Enterprise Funds remitted $254,898 to the
General Fund for Administrative Management fees. This amount is reflected as
Intragovernmental Services revenue in the General Fund and as management fees, an
operating expense, in the Enterprise Funds.
NOTE 6. RESTRICTED ASSETS
Restricted assets as of September 30, 2005 consist of the following accounts:
Investments Total
Customer deposits $ 300,879 $300,879
Renewal and replacement 188,550 188,550
Debt service 128,552 I28,552
Total restricted assets $ 617,981 $ 617,981
NOTE 7. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2005 was-as follows:
Beginning Ending .
Balance Additions Deductions Balance
Government activities:
Capital assets not being depreciated:
Land $ 402,935 $ - $ - $ 402,935
Construction in progress 134,074 441,611 - 575,685
Total capital assets not being depreciated 537,009 441,611 - 978,620
Capital assets being depreciated:
Buildings 4,767,001 - 4,767,001
Improvements other than buildings 1,308,651 162,459 - 1,471,110
Equipment 2,481,644 722,430 (139,74 3,064
Total capital assets being depreciated 8,557,296 884,889 139,747 _ 9,302,438
Less accumulated depreciation for:
Buildings (313,396) (119,179) - (432,575
Improvements other than buildings (236,901 ).
{55,596) (292,497)
Equipment 1,994,405 284,866 139,747 (2,139,524)
Total accumulated de p reci ation (2-,5- 4 702 459,64I 139,747 (2,864,596)
Total capital assets being depreciated 6,012,594 425,248 - 6,437,842
Governmental activities capital assets, net $ 6,549,603 $ 866 $ _ $ 7,41 6,461
-37-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 7. CAPITAL ASSETS (Continued)
Beginning Ending
Balance Additions Deletions Balance
Business -type activities:
Capital assets not being depreciated:
Land $ 83,335 $ - $ - $ 83,335
Construction in progress 360,246 1,058,184 16( 3,423) 1,255,007
Total capital assets not being depreciated 443,581 1,058,184 163,423 1,338,342
Capital assets being depreciated:
Buildings 979,512 - - 979,512
Improvements other than buildings 22,462,619 732,188 - 23,194,807
Equipment 889,027 132,173 38,292 982,908
Total capital assets being depreciated 24,331,158 864,361 38,292 25,157,227
Less accumulated depreciation for:
Buildings (406,140) (24,488) - (430,628)
Improvements other than buildings (6,555,317) (717,211) - (7,272,528)
Equipment 474,03 79,218 30,919 522,335
Total accumulated depreciation (7,435,493) (820,917) 30,919 (8,225,491)
Total capital assets being depreciated, net 16,895,665 43,444 7,373 16,931,736
Business -type activities capital assets, net $17,339,246 $1,101,628 $ 170,79 $18,270,078
Depreciation expense was charged to functions/programs of the Village as follows:
Governmental activities:
General government $ . 7,064
Public safety 339,127
Transportation 31,144
Leisure services 82,307
Total depreciation expense - governmental activities $ 459,642
Business -type activities:
Water $ 756,223
Nonmajor funds 64,694
Total depreciation expense - business -type activities $ 820,917
NOTE 8. CAPITAL LEASES
The Village entered into a capital lease in the amount of $397,922 during February 2003 for the
financing of a fire pumper. The applicable interest rate is 3.610% and interest and principal
payments are due annually on April 15". The lease expires on April 15, 2012.
-38-
VILLAGE ,OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 8. CAPITAL LEASES (Continued)
The following is a schedule of the future minimum lease payments under this capital lease
arrangement at September 30, 2005:
Fiscal year ending September 30:
2006 $ 46,720
2007 46,720
.2008 46,720
2009 46,720
2010 46,720
2011 -12 93,440
Total minimum lease payments 327,040
Less amount representing interest 42,538
Present value of future minimum lease payments $ 284,502
The Village entered into a capital lease in the amount of $30,678 during December 2003 for the
financing of a 2004 Chevrolet Tahoe. The applicable interest rate is 6.510% with monthly
principal and interest payments totaling $595.22. The lease expires on December 1, 2008.
The following is a schedule of the future minimum lease payments under this capital lease
arrangement at September 30, 2005:
Fiscal year ending September 30:
2006 $ 7,143
2007 7,143
2008 7,143
2009 1,786
Total minimum lease payments 23,215
Less amount representing interest 2,221
Present value of future minimum lease payments $ 20,994
The Village entered into a capital lease in the amount of $21,998 during January 2004 for the
financing of a 2004 Ford F -150 supercrew pickup truck. The applicable interest rate is 4.63%
with monthly principal and interest payments totaling $655.63. The lease expires on
December 30, 2006.
-39-
VILLAGE OF TEQUESTA, +FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE B. CAPITAL LEASES (Continued)
The following is a schedule of the future minimum lease payments under this capital lease
arrangement at September 30, 2005:
Fiscal year ending September 30:
2006 $ 7,868
2007 1,967
Total minimum lease payments 9,835
Less amount representing interest 314
Present value of future minimum lease payments $ 9,521
The Village entered into a capital lease in the amount of $152,999 during July 2005 for the
financing of a 2005 American Lafrance Medic Master ambulance. The applicable interest rate is
3.78% with monthly principal and interest payments totaling $2,802.55.
The following is a schedule of the future minimum lease payments under this capital lease
arrangement at September 30, 2005.
Fiscal year ending September 30:
2006 $ 33,631
2007 33,631
2008 33,631
2009 33,631
2010 25,223
Total minimum lease payments 159,747
Less amount representing interest 13,730
Present value of future minimum lease payments $146,017
NOTE 9. LONG -TERM DEBT
The following is a summary of changes in long -term liabilities of the Village for the year ended
September 30, 2005:
Governmental Activities
Revenue Bonds —1994
The Village issued Improvement Revenue Refunding Bonds, Series 1994, in the amount of
$1,365,000 with an interest rate of 6.15% dated June 24, 1994 and a maturity date of July
1, 2009. Pursuant to the Bond Resolution, 16- 93194, the Village is obligated to use
Franchise Fees and Occupational Licenses Fees to pay the principal and interest on the
bonds. At September 30, 2005, $490,000 of this issue was outstanding. Remaining
revenues after all principal and interest payments may be used for any lawful purpose.
-40-
VELLAGE OF TEQUEsTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 9. LONG -TERM DEBT (Continued)
Governmental Activities (Continued)
Revenue Bonds -1994
Debt service requirements to maturity are as follows:
Principal Interest Total
Year ending September 30:
2006 $110,000 $ 30,135 $140,135
2007 120,000 23,370 143,370
2008 125,000 15,990 140,990
2009 135,000 8,303 143,303
Total $ 490,000 $ 77,798 $ 567,798
Note Payable
On September 13, 2002, the Village Council authorized management to enter into a
$5,000,000 loan agreement with a bank, due $31,042 per month including interest at
4.28 %, maturing September 2022. Proceeds from the note are to be used to finance the..
final construction of the public safety facility, to repay existing debt obligations and to
reimburse the Village for prior capital expenditures incurred in connection with the
construction of the public safety facility. The loan principal and interest amounts are to be
repaid from non ad valorem tax revenues.
Debt service requirements to maturity are as follows:
Principal Interest Total
Year ending September 30:
2006 $ 183,753 $ 188,748 $ 372,501
2007 191,774 180,727 372,501
2008 200,143 172,358 372,501
2009 208,881 163,620 372,501
2010 217,998 154,504 372,502
2011 -2015 1,241,310 621,198 1,862,508
2016 -2020 1,536,929 325,578 1,862,507
2021 -2022 712,791 32,212 745,003
Total $4,493,579 $1,838,945 $6,332,524
-41-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 9. LONGTERM DEBT (Continued)
Business-type Activities
Water Revenue Bonds -1998
The Village issued Water Revenue Bonds, Series 1998, in the amount of $7,915,000 with a
varying interest rate of 3.8 to 5.125% dated March 1, 1998 and a maturity date of March 1, .
2028. Pursuant to the Bond Resolution, 7- 97198, the Village is obligated to establish and
maintain required reserves as noted in Note 10 — Required Reserves. At September 30,
2005, the outstanding balance was $7,020,000.
Debt service requirements to maturity are as follows:
Principal Interest Total
Year ending September 30:
2006 $ 170,000 $ 348,885 $ 518,885
2007 180,000 341,185 521,185
2008 185,000 333,015 518,015
2009 195,000 ' 324,415 519,415
2010 205,000 315,113 520,113
2011 -2015 1,185,000 1,411,285 2,596,285
2016 -2020 1,525,000 1,067,921 2,592,921
2021 -2025 1,950,000 625,250 2,575,250
2026 -2028 1,425,000 112,109 1,537,109
Total 7,020,000 4,879,178 11,899,178
Less unamortized discount 89,925 - 89,925
$ 6,930,075 $ 4,879,178 $11,809,253
Water Expansion Loan
On June 30, 2004, the Village entered into a $645,170 loan agreement with Bank of America,
with an interest rate of 4.96% per annum, maturing May 1, 2024. Proceeds from the note are
to be used to finance the expansion of the Village water system. Interest on the outstanding
principal balance is paid in arrears, on the first day of each and every May and Novemberi
commencing November 1, 2004. This note will be repaid in 19 installments of principal due
on the first day of each May, commencing May 1, 2005. The final payment of the entire
unpaid principal balance and all accrued and unpaid interest is due on May 1, 2024. The
principal may be prepaid at the option of the Village in whole or in part, on November 1 or
May 1, in which case there shall be no prepayment premium or penalty. As of September 30,
2005, $100,318 has been prepaid on the note.
-42-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 9. LONGTERM DEBT (Continued)
Water Expansion Loan (Continued)
Debt service requirements to maturity are as follows:
A dngipal Interest Payments
Year ending September 30:
2006 $ 20,000 $ 31,008 $ 51,008
2007 21,000 30,016 51,016
- 2008 ••23,000 28,975 51,975
2009 24,000 27,834 51,834
2010 25,000 26,644 51,644
2011 -2015 144,000 113,477 257,477
2016 -2020 185,000 73,946 258,946
2021 -2024 82,852 9,341 92,193
Total $ 524,852 $ 341,241 $ 866,093
Changes in Long -Term Debt
The following is a summary of long -term debt for the year ended September 30, 2005:
Due
Beginning Ending Within
Balance Additions Deletions Balance One Year
Governmental activities:
Revenue bonds -1994 $ 595,000 $ - $ (105,000) $ 490,000 $110,000
Note payable 4,669,648 - (176,068) 4,493,579 183,753
Capital leases 363,065 152,999 (55,033) 461,032 78,642
Compensated absences 339,490 53,542 28,162 364,870 6,800
$5,967,203 $20_ 6,541 $(364,263 0 $5,809,481 $379,195
Business -type activities:
Revenue bonds - 1998 $ 7,185,000 $ - $ (165,000) $ 7,020,000 $170,000
Unamortized bond discount 93,835 - 3,910 (89,925 -
7,091,165 - (161,090) 6,930,075 170,000
Note payable 645,170 - -- (120,318) 524,852 20,000
Compensated absences 117,798 22 ,092 11,260 128,630 5,500
$7,854 $ 22,092 $ 292,668 $ 7,583,557 $195,500
All compensated absences activity is reported in the general fund.
-43-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 9. LONGTERM DEBT (Continued)
Defearsarnee of Long -Term Debt
In a prior year, the Village defeased the 1978 Series $3,915,000 Water Revenue Refunding
Bonds by placing the proceeds from the new bonds in an irrevocable trust to provide for all
future debt service payments on the old bonds. Accordingly, the trust account's assets and the
liability for the defeased bonds are not included in the Village's financial statements. At
September 30, 2005, $1,905,000 was still outstanding.
NOTE 10. REQUIRED RESERVES
The Bond Resolution of the Water Revenue Bonds Series 1998 requires the establishment of the
following accounts:
Account Puraose
Construction To accumulate funds for payment of construction costs.
Revenue To collect the entire gross revenues derived from the water system except
investment earnings.
Debt service To accumulate sufficient funds to meet the annual debt service
requirements through transfers from the revenue account.
Operation and maintenance To pay all operating expenses of the system
.Rebate To accumulate funds to meet any possible arbitrage rebate expenses, if
required.
Renewal and replacement To accumulate funds for the purpose of paying for the cost of extensions,
additions to, or the replacement of capital assets of the system.
Reserve To accumulate funds for payment of principal and interest only if funds in
the debt service funds are insufficient.
Rate stabilization To accumulate funds to be used for any lawful purpose including malting
deposits in the revenue account.
Impact fees To accumulate impact fee revenue received each fiscal year. To be used
in the event that funds in the revenue account are insufficient to funds the
debt service account.
The reserves for revenue bond retirement and renewal and replacement represent the total of
restricted assets less amounts payable from restricted assets as reported in the water fund. The
Village has established all of the required reserve accounts.
-44-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 11. FLORIDA RETIREMENT SYSTEM
Plan Description
All full time employees hired before January 1, 1996 are eligible to participate in the Florida
Retirement System (FRS), a cost sharing, multiple - employer, public retirement system
controlled by the State Legislature and administered by the State of Florida Department of
Administration, Division of Retirement. The FRS provides retirement and disability benefits,
annual cost of living adjustments and death benefits to plan members and beneficiaries. A
post employment health insurance subsidy is,also provided to eligible employees.
Benefits are established by Chapter 121, Florida Statutes and Chapter 22B, Florida
Administrative Code. Amendments to the law can only be made by an act of the Florida
Legislature.
The State of Florida issues a publicly available financial report that includes financial
statements and required supplementary information for the FRS. The latest available report
was for the fiscal year ended June 30, 2005. That report may be obtained by writing to the
State of Florida Division of Retirement, Department of Management Services, 2639 -C North
Monroe Street, Tallahassee, Florida 32399 -1560.
Funding Policy
The FRS funding policy provides for monthly employer contributions at actuarially .
determined rates that expressed as percentages of annual covered payroll are adequate to
accumulate sufficient assets to pay benefits when due. Level percentage of payroll employer
contribution rates, established by state law, are determined using the entry-age actuarial cost
method. If an unfunded actuarial liability reemerges as a result of future plan benefit changes,
assumption changes, or methodology changes, it is assumed any unfunded actuarial liability
would be amortized over 30 years, using level dollar amounts. Except for gains reserved for
rate stabilization, it is anticipated that future actuarial gains and losses are amortized on a
rolling 10% basis, as a level dollar amount. The contribution rates by job class for the
Village's employees at September 30, 2005 were as follows: regular employees — 7.83 %,
special risk employees — 18.53% and senior management — 9.33 %. These rates include 1.11
for the employer Health Insurance Subsidy contribution, which is the same for all risk classes
and 0.10% administrative fee from which senior management is exempted.
The Village's contributions to the FRS for the fiscal years ended September 30, 2003, 2004 .
and 2005 were $132,734, $156,343, and $139,687 respectively, which were equal to the
required contributions for each fiscal year.
-45-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM
The Village maintains a single - employer, defined benefit pension retirement system. The
retirement system provides benefits to all full time firefighters, as well as any full time police
officers or general employees hired January 1, 1996 or thereafter. In 1999, the Plans were
amended, establishing a separate plan for public safety officers (firefighters and police officers)
and a separate plan for general employees. The retirement system was established by the Village
and is administered by two separate Boards of Trustees (public safety officers and general
employees). The retirement system receives contributions that may not be used to pay the
benefits of all employee classes. Due to this restriction, for financial statement purposes, three
separate plans are shown as pension trust funds. The Village Employees' Retirement System
administers the following plans: The Public Safety Officers' Pension Trust Fund which includes
The Firefighters' Pension Trust Fund (FPTF), and The Police Officers' Pension Trust (PPTF) and
the General Employees' Pension Trust Fund (GPTF).
S UMMA R Y OF SIGNIFICANT ACCOUNTING POLICIES
Pension Trust Funds
Basis of Accounting
The pension trust funds are reported on the accrual basis of accounting. Plan member and
state contributions are recognized as revenues in the period that the contributions are due.
Employer contributions to each plan are recognized when due and the employer has made a
formal commitment to provide the contributions. Benefits and refunds are recognized
when due and payable in accordance with the terms of the plan.
Method Used to Value Investments
Investments are reported at fair value. Short -tenor investments are reported at cost which
approximates fair value. Securities traded on a national or international exchange are
valued at the last reported sales price at current exchange rates.
Concentration of investments
The Plans did not have any single investment of S% or more of net assets in any one
organization.
PLANDESCRIPTIONAND COATJUBUTIONDVFORMATION
The following descriptions of the Pension Trust Funds are provided for general information
purposes only. Plan members should refer to the appropriate source documents for more
complete information on the plans.
-46-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLANDESCRIPTIONAND CONTRIBUTIONINFORMA77ON (Continued)
Membership in each plan consisted of the following at October 1, 2005, the date of the latest
actuarial valuation:
FPTF PM GPTF
Covered group:
Active members 16 12 24
Inactive members 1
Total 17 12 24
Benefit provisions and contribution requirements of plan members and the Village are
established, and may be amended, only by the Village Council.
a. Public Safety Officers' Trust Fund
Plan Description
Any firefighter or police officer who completes ten or more years of credited service and ..
attains age 55, or completes 25 years of credited service and attains age 52, is eligible for
normal retirement benefits. The monthly amount of normal retirement income for a
firefighter is equal to the number of years of credited service multiplied by 3% of his
average highest 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 4%
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
as follows:
.If the injury or disease is service connected, the firefighter or police officer shall be entitled
to the greater of (a) or (b):
(a) A monthly pension equal to 42% of his average compensation, or
(b) An amount equal to the number of years of his credited service multiplied by 3% of
his average monthly salary based upon his highest five years of service.
If the injury or disease is not service connected, the firefighter or police officer shall be
entitled to the greater of (a) or (b):
(a) A monthly pension equal to 25% of his average compensation, or
(b) An amount equal to the number of years of his credited service multiplied by 3% of
his average monthly salary based upon his highest five years of service.
-47-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLANDESCRIPTIONAND CONTRIBUTION INFORMATION(Continued)
a. Public Safety Officers' Trust Fund (Continued)
Plan Description (Continued)
If the firefighter or police officer dies prior to retirement from the Village, his beneficiary
shall receive the following benefit:
(a) Line -of -Duty- Death - Benefit — a pension to the spouse (or children) of 50% of
Average Compensation for life.
(b) Non - Line -of- Duty-Death — the spouse of a member with six years of credited service
will receive the actuarial equivalent of the accrued early or normal retirement benefit.
If the firefighter or police officer dies or terminates employment with less than six years of
credited service, he is entitled to a refund of the money he contributed.
Funding Policy
Firefighters and police officers are required to contribute 5% of their compensation to the
plan. The State of Florida contributes the net proceeds of the excise tax imposed upon
casualty and property insurance premiums on policies written within the Village. The
Village is-required to contribute the remaining actuarially determined amount to fund the
plan using the aggregate actuarial cost method as approved by the plans' Board of
Trustees. The aggregate method does not separately identify or amortized the unfunded
actuarial liability.
The Firefighters' Pension Fund (part. of the Public Safety Officers' Trust Fund) does not
issue a separate stand alone financial statements. Therefore, included below is the
Statement of Fiduciary Net assets and the Statement of Changes in Fiduciary Net Assets as
of and for the year ended September 30, 2005.
FIREFIGHTERS' PENSION FUND
STATEMENT OF FIDUCIARY NET ASSETS
SEPTEMBER 30, 2005
ASSETS
Investments $2,215,338
Accrued interest 5,899
Contributions receivable 21,902
Total assets 43 139
LIABILITIES AND NET ASSETS
Accounts payable 2,092
Due to other funds 300
Total liabilities 2,392
Net assets held in trust for pension benefits $2,240 747
-48-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLANDESCRIPTIONAND CONTR IBUTIONINFORMATION(Continued)
a. Public Safety Officers' Trust Fund (Continued)
Funding Policy (Continued)
FIREFIGHTERS' PENSION FUND
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FISCAL YEAR ENDED SEPTEMBER 30, 2005
ADDMONS
Contributions $ 261,814
Investment income, net 113,956
Total additions 375,770
DEDUCTIONS
Pension benefits and refunds 15,465
Operating expenses 14,051
Total deductions 29,516
Net increase 346,254
Net assets held in trust for pension benefits:
Net assets, beginning 1,894 493
Net assets, ending $ 2,240,747
The Police Officers' Pension Fund (part of the Public Safety Officers' Trust Fund) does issue
separate stand alone financial -statements. Included below is the Statement of Fiduciary Net
Assets and the Statement of Changes in Fiduciary Net Assets as of and for the year ended
September 30, 2005.
POLICE OFFICERS' PENSION FUND
STATEMENT OF FIDUCIARY NET ASSETS
SEPTEMBER 30, 2005
ASSETS
Investments $652,229,,
Accrued interest 1,602
Contribution receivable 3,250
Total assets 657,081
LIABILITIES AND NET ASSETS
Accounts payable 570
Total liabilities 570
Net assets held in trust for pension benefits $ 656,511
-49-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLANDESCRIPTIONAND CONTRIBUT IONINFORMATION(Continued)
a. Public Safety O fficers' Trust Fund (Continued)
POLICE OFFICERS' PENSION FUND
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FISCAL YEAR ENDED SEPTEMBER 30, 2005
ADDITIONS
Contributions $143,821
Investment income, net 30,280
Total additions 174,101
DEDUCTIONS
Pension benefits and refunds 13,124
Operating expenses 3
Total deductions 16,797
Net increase 157,304
Net assets held in trust for pension benefits:
Net assets, beginning 499,207
Net assets, ending $ 656,511
b. General Employees' Pension Trust Fund
Plan Description
Any general employee who completes ten or more years of credited service and attains age
62, or completes 30 years of credited service regardless of age, is eligible for normal
retirement benefits. The monthly amount of normal retirement income for a general
employee is equal to the number of years of credited service multiplied by 2% of his average
highest compensation. Early retirement may be taken after a general employee has attained
the age of 50 and has ten years of credited service. In the event of early retirement, benefits
are actuarially reduced to take into account the general employee's younger age and earlier
commencement of retirement benefits. Such reduction shall not exceed 5% per year.
Disability benefits can be received for total and permanent disabilities as determined by the
Board of Trustees. If the pension is granted, the benefit amount shall be as follows:
If the injury or disease is service connected, the general employee shall be entitled to the
greater of (a) or (b):
(a) A monthly pension equal to 42% of his average compensation, or
-50-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLANDESCRIPTIONAND CONTR IBUTIONEWORMATION(Continued)
b. General Employees' Pension Trust Fund (Continued)
Plan Description (Continued)
(b) An amount equal to the number of years of his credited service multiplied by 2% of
his average monthly salary based upon his highest five years of service.
If the injury or disease is not service connected, the general employee shall be entitled to
the greater of (a) or (b):
(a) A monthly pension equal to 25% of his average compensation, or
(b) An amount equal to the number of years of his credited service multiplied by 2% of
his average monthly salary based upon his highest five years of service.
If the general employee dies prior to retirement from the Village, his beneficiary shall
receive an amount equal to the vested pension benefit. A survivor benefit is payable to the
beneficiary starting when the member would have reached retirement age.
If the general employee dies or terminates employment with less than six years of credited
service, he is entitled to a refund of the money he contributed.
Funding Policy
General employees are required to contribute 5% of their compensation to the plan. The
Village is required to contribute the remaining amount to fund the plan using the aggregate
actuarial cost method as approved by the plan's Board of Trustees. The aggregate method
does not separately identify or amortize the unfunded actuarial liability.
The General Employees' Pension Trust Fund does not issue separate stand alone financial
statements. Therefore, included below is the Statement of Fiduciary Net assets and the
Statement of Changes in Fiduciary Net Assets as of and for the year ended September 30, 2005.
GENERAL EMPLOYEES' PENSION TRUST FUND
STATEMENT OF FIDUCIARY NET ASSETS
SEPTEMBER 30, 2005
ASSETS
Cash S 11,105
Investments 573,240
Contributions receivable 5,210
Total assets 589,555
LIABILITIES AND NET ASSETS
Accounts payable 4,060
Net assets held in trust for pension benefits $585,495
-51-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLAN DESCRIPTION AND CONTRIBUTIONINFORMATION (Continued)
6. General Employees' Pension Trust Fund (Continued)
Funding Polley (Continued)
GENERAL EMPLOYEES' PENSION TRUST FUND
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FISCAL YEAR ENDED SEPTEMBER 30, 2005
ADDITIONS
Contributions $155,164
Investment income, net 54,181
Total additions 209,345
DEDUCTIONS
Pension benefits and refunds 47,038
Operating expenses 10,523
Total deductions 57,561
Net increase 151,784
Net assets held in trust for pension benefits:
Net assets, beginning 433,711
Net assets, ending $ 585,495
Annual Pension Cost
The Village's 2005 annual pension cost and actual contributions for each plan are shown
below. The required contributions were determined as part of the October 1, 2005 actuarial
valuation for each plan.
Three -Year Trend Information
Annual Percentage Net Pension
Pension of APC Obligation
Fiscal Year Endine Cost (APQ Contributed ' Asset
Firefighters' Retirement System:
September 30, 2003 $ 115,482 66.6% $ (105,139)
September 30, 2004 140,983 98.3% (138,066)
September 30, 2005 148,675 101.8 (140,790)
-52-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLANDESCRIPTIONAND CONTRIBUTIONINFORMATION (Continued)
Annual Pension Cost (Continued)
Three-Year Trend Information
Annual Percentage Net Pension
Pension of APC Obligation
Fiscal Year Ending Cost fAPC) Contributed (Asset
Police Officers' Retirement System:
September 30, 2003 38,879 40.9% (50,886)
September 30, 2004 56,518 156.3% (73,826)
September 30, 2005 59,912 115.3% (83,018)
General Employees' Retirement System:
September 30, 2003 65,157 107.2% (43,265)
September 30, 2004 92,657 80.0% (42,826)
September 30, 2005 96,383 99.5% (42,392)
Components of Annual Pension Cost and Net Pension Asset
Police General
Firefighters' Officers' m vloyees
Annual required contribution (ARC) $ 145,344 $ 58,489 $ 95,949
Interest on net pension obligation (NPO) (11,045) (5,906) (3,426)
Adjustment to ARC 14,376 7,329 3,860
Annual pension cost 148,675 59,912 96,383
Actual contributions 151,399 69,104 95,949
Increase (decrease) in net pension obligation (asset) (2,724) (9,192) 434
Net pension obligation (asset), beginning 138,06 (73,82 42,82
Net pension obligation (asset), ending $ 140,790 $ $ (42,392
Actuarial assumptions:
Investment rate of return* 8% 8% 80 /0
Projected salary increase* 6% 6% 6%
*Includes inflation at
Cost of living adjustments N/A N/A N/A
-53-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETEMMENT SYSTEM (Continued)
PLANDESCRIPTIONAND CONTBIBVTIONINFOR.MATION (Continued)
Components of Annual Pension Cost and Net Pension Asset (Continued)
Police General
Firefighters Officers Employees
Pension Pension Pension
Fund Fund Fund
Valuation date 10/1/2005 10 /1 /2005 10/1/2005
Actuarial cost method Aggregate Aggregate Aggregate
Amortized method (1) (1) (1)
Remaining amortization period
Asset valuation method Fair value Fair value Fair value
Administrative costs Included in calculation Included in calculation Included in calculation
of normal cost of normal cost of normal cost
Actuarial assumptions:
Investment rate of return* 8% 8% 8%
Projected salary increase* 6% 6% 6%
*Includes inflation at 4 4% 4%
Cost of living adjustments 0 0 /0 0 0 /0 0 0 / 0
(1) When the aggregate actuarial cost method is used, unfunded actuarial liabilities are not identified or
separately amortized; therefore, a schedule'of funding progress is not required and has not been provided.
NOTE 13. COMMITMENTS AND CONTINGENCIES
Long -Terra Agreement to Purchase Water
On July 15, 1976, the Village entered into an agreement with Tri- Southern Utilities Company,
Inc. (the agreement was subsequently assumed by the Town of Jupiter) to purchase water for
the Village's water system for a period of 30 years. Rates for water service are based on
wholesale rates. The Village is billed monthly based upon a contracted minimum usage rate
of 1,500,000 gallons per day. Water purchases were approximately $679,000 for the year
ended September 30, 2005.
-54-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 13. CORE IITMENTS AND CONTINGENCIES (Continued)
Lease Agreements
On December 20, 1994, the Village entered into an Interlocal agreement with Palm Beach
County. Per the agreement, Palm Beach County provided for partial funding, land acquisition
and design and construction of a branch library within Tequesta. Upon completion of the
project, the library was leased to Palm Beach County for 50 years for an annual rent of one
dollar. In the event the Village terminates the lease before the end of 50 years, the Village
must reimburse Palm Beach County a depreciated value using a useful life of 25 years based
on an initial value of $405,000 calculated on a straight -line basis.
Contracted Services — Refuse and Recycling Collection
Effective October 1, 1989, the Village entered into a franchise agreement with Nichols
Sanitation, Inc. for curbside solid waste and recycling collection services. On ,October 14,
1993, the Village amended the franchise agreement. The amendment extended the agreement
for an additional five years commencing October 1, 1994. For consideration of the extension,
the collection rates were reduced. In addition, the Village assessed a 6% franchise fee for
each residential customer, effective October 1, 1994. Nichols Sanitation may also adjust the
curbside and recycling rates beginning October 1, 1995, and each October I' thereafter based
upon the change in the Consumer Price Index (CPI). Effective October 1, 1999, the existing
agreement was extended through September 30, 2007. Refuse and recycling fees totaled,
approximately $255,000 for the year ended September 30, 2005.
Contracted Services -- Fire/Emergency Medical Service
Effective October 1, 1993, the Village entered into an Interlocal agreement with Jupiter Net
Colony for the Village to provide fire protection/emergency medical services for a fee. For
the year ended September 30, 2005, fire protection fees received from Jupiter Inlet Colony
were $177,638.
Construction Commitments
Significant construction commitments as of September 30, 2005 are as follows:
Estimated Estimated
Expended Cost to Completion
Description to Date Complete Date
Governmental Funds
Capital Projects Fund:
Village Hall Plans (engineering only) $146,927 S 66,300 Sep -06
Village Hall Construction 126,575 2,340,425 Sep -0ti
FEC Project 47,306 451,735 Sep -06
Constitution Park 369,966 12,234 Apr -06
-55-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 13. COMMITMENTS AND CONTINGENCIES (Continued)
Construction Commitments (Continued)
Estimated Estimated
Expended Cost to Completion
Description to Date Complete Date
Enterprise Funds
Water Utility.
Tropic Vista Water Main Extension $379,228 $ 59,100 Mar-06
Hydraulic Model Update (engineering only) 13,400 6,600 Jul -06
Water Plant Expansion 649,256 219,639 May -06
Chlorine Modifications 4,350 39,150 Dec -06
Rolling Hills Expansion 9,850 100,150 Sep-06
GIs 10,652 10,000 Sep -06
Cypress Drive South - 276,000 Sep -06
Cypress Drive North - 21,000 Sep -06
Pond Rehabilitation - 13,000 Sep -06
NOTE 14. 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
purchases commercial insurance to cover the various risks. There was no reduction in insurance
coverage from coverages in the prior year. Retention of risks is limited to those risks that are
uninsurable with deductibles ranging from $250 to $10,000 per occurrence.
Major uninsurable risks include damages to infrastructure assets. Since the amount of loss cannot
be reasonably estimated and the likelihood of occurrence is not determinable, no provision for
losses is reflected in the financial statements. There were no settled claims which exceeded
insurance coverage during the past three fiscal years.
The Village is insured under a retrospectively rated policy for workers'- compensation coverage.
The plan is a trust fund comprised of local governmental entities. The premiums are based on the
risk class and remuneration of covered employees adjusted by an experience modification based
on the claims history of the Village. At the end of the premium year, the Village can either
receive a discount or pay an additional premium based on its claims experience. Should a deficit
develop in the trust fund after excess insurance recoveries, the Village shall thereafter be
responsible for its individual costs.
-56-
VILLAGE OF TEQUESTA, ]FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 15. JOINT VENTURE
The Village, in conjunction with six other municipalities, organized a consortium to provide
mutual fire and emergency aid. The consortium is known as the Northern Area Mutual Aid
Consortium (NAMAC). During 1999, the consortium purchased equipment and supplies as well
as collected contributions. The consortium does not issue separate financial statements. The
Village has not been obligated to contribute any funds to the consortium since its inception in
1999.
NOTE 16. RESTATEMENT OF BEGINNING NET ASSETS
During fiscal year ending September 30, 2005, it was identified that equipment, purchased
through capital leases were not included in Beginning Net Assets, Governmental Activities,
during the year the Village of Tequesta implemented GASB 34. The total amount of the
equipment was $450,598.
The capital assets are included on the Statement of Net Assets at September 30, 2005 (page 16)
and the Statement of Activities for fiscal year ended September 30, 2005 (page 17), reflects the
change by noting, Net assets, beginning, as restated'.
NOTE 17. SUBSEQUENT EVENTS
Hurricane Wilma struck in October 2005. Expenditures to date are approximately $194,000 and
the Village has received reimbursement for the amounts from Federal and State grants.
-57-
REQUIRED SUPPLEMENTAL INFORMATION
VILLAGE OFTEQUESTA,FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
GENERALFUND
FISCAL YEAR ENDED SEPTEMBER 30, 2005
Variance
with
Final
Budget -
Budeeted Amounts Actual Positive
Original Final Amounts a five
Revenues:
Ad valorem taxes $4,415,543 $4,415,543 $4,494,713 $ 79,170
Other taxes 1,002,340 1,002,340 1,084,827 82,487
Intergovernmental 754,992 754,992 622,457 (132,535)
Charges for services 386,020 415,520 490,995 75,475
Intrrgovernmental 254,898 254,898 254,898 -
Grants 15,000 36,000 515,438 479,438
Licenses and permits 279,150 279,150 466,053 186,903
Interest 54,000 54,000 205,865 151,865
Fines and forfeitures 35,600 335,600 350,504 14,904 .
Miscellaneous 121,870 233,186 289,647 56,461
Impact fees 13,200 13,200 9,707 3,493
Total revenues 7,332,613- 7,794,429 8,785,104 990,675
Expenditures:
Current:
Public safety 4,249,294 4,506,041 4,343,621 162,420
General government 1,568,545 1,420,350 1,314,270 106,080
Transportation 547,360 671,193 625,014 46,179
Leisure services 465,800 620,354 523,439 96,915
Capital outlay 66,685 153,079 256,916 (103,837)
Debt service:
Principal retirement 242,570 242,570 231,101 11,469
Interest 215,740 215,740 212,238 3,502
Fiscal charges 7,000 7,000 6,944 56
Total expenditures 7,362,994 7,836_,327 7,513,543 322,784
Excess of revenues over expenditures (30,381) 41,898 _1,271,561 1,313,459
Other financing sources (uses):
Capital lease proceeds - - 152,999 (152,999)
Transfers in 357,040 357,040 999,517 (642,477)
Transfers out (2,711,800) (2,873,946) (2,711,800) (162,146)
Appropriated fund balance 2,385,141 2,558,804 - 2,558,804
Total other financing sources (uses) 30,381 41,898 1,559,284 1,601,182
Net change in fund balance $ - $ - $ 287,723 $ 287,723
See note to budgetary comparison schedule.
-58-
VILLAGE OF TEQUESTA, FLORIDA
NOTE TO THE BUDGETARY COMPARISON SCHEDULE
SEPTEMBER 30, 2005
NOTE 1. BUDGETS AND BUDGETARY ACCOUNTING
Formal budgetary integration is employed as a management control device during the year for the
General Fund, Special Revenue Fund and Capital Projects Funds. All budgets are legally enacted
through passage of an ordinance.
Budgets are adopted on a basis jconsistent with accounting principles generally accepted in the
United States. For budgeting purposes, current year encumbrances are not treated as
expenditures.
The Village follows these procedures in establishing the budgetary data reflected in the financial
statements:
1) Prior to September 1 ft , 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 condudted to obtain taxpayer comments.
3) Prior to October 1 the budget is legally enacted through passage of an ordinance.
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. Budget
amendments were not material in relation to original appropriations. During the year,
supplemental appropriations of approximately $316,000 were made. Appropriations are legally
controlled at the fund level and expenditures may not legally exceed budgeted appropriations at
that level. Appropriations lapse at year end.
-59-
VILLAGE 4F TEQUESTA, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF EMPLOYER CONTRIBUTIONS
FISCAL YEAR ENDED SEPTEMBER 30, 2005
Annual
Fiscal Required Village State Percentage
Year Contribution Contribution Contribution Contributed
Firefighters' Pension Fund
2001 $ 59,836 $ 24,694 $ 4,783 49.3%
2002 59,836 66,261 81,917 247.6%
2003 114,382 76,957 59,123 119.0%
2004 139,739 82,036 56,536 99.2%
2005 145,344 115,072 92,522 142.8%
Police Officers' Pension Fund
2001 $ 18,199 $ - $ - 0.0%
2002 18,199 - 81,854 449.8%
2003 38,594 15,906 53,639 180.2%
2004 56,225 20,391 67,950 157.1%
2005 58,489 49,002 65,700 196.1%,
General Employees' Pension Fund
2001 $ 12,887 $ 36,983 N/A 287.0%
2002 41,607 48,124 N/A 115.7%
2003 64,723 69,869 N/A 108.0%
2004 92,218 74,110 N/A 80.4%
2005 95,949 98,658 N/A 100.0
-60-
i
Page Intentionally Left Blank
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
NONMAJOR GOVERNMENTAL FUNDS
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Special revenue funds are used to account for specific revenues that are legally restricted
to expenditures for particular purposes.
Special Revenue Fund — This fund was established to collect and accumulate certain
revenues from Franchise fees and Occupational Licenses to pay principal and interest on
the 1994 Series Improvement Revenue Refunding Bonds.
Special Law Enforcement Trust Fund — This fund is used to account for forfeitures
received by the Police Department.
Capital Projects Funds
Capital projects funds are used to account for the acquisition and construction of major
capital facilities other than those financed by proprietary and trust funds.
Capital Improvement Fund — This fund is used to account for the maintenance and
upkeep of the Village's general infrastructure (such as roads, bridges, sidewalks and
storm water drainage systems) and streetscape beautification projects.
VILLAGE OF TEQUESTA, FLORIDA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2005
Total
Special Special Law Capital Nonmajor
Revenue Enforcement Improvement Governmental
Fund Fund Fund Funds
ASSETS
Assets:
Cash and cash equivalents $ 111,669 $ - $ 739 $ 112,408
Investments 188,737 17,651 362,171 568,559
Accounts receivable 40,353 250 - 40,603
Total assets $ 340,759 $ 17,901 $ 362,910 $ 721,570
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ - $ - $ - $ -
Retainage payable - - - -
Deferred revenue 46,315 - - 46,315
Total liabilities 46,315 - - 46,315
Fund balances:
Reserved for debt service 294,444 - - 294,444
Reserved for encumbrances - - 159,225 159,225
Unreserved - 17,901 203,685 221,586
Total fund balances 294,444 17,901 362,910 675,255
Total liabilities and fund balances $ 340,759 $ 17,901 $ 362,910 $ 721,570
-61-
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL. FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2005
Total
Special Special Law Capital Nonmajor
Revenue Enforcement Improvement Governmental
Fund Fund Fund Funds
Operating revenues:
Franchise fees $ 367,778 $ - $ - $ 367,778
Licenses and permits 83,831 - - 83,831
Interest 8,264 459 - 8,723
Fines and forfeitures - 1,750 - 1,750
Total revenues 459,873 2,209 - 462,082
Operating expenditures:
Public safety - - - -
Capital outlay - - 11,550 11,550
Debt service:
Principal 105,000 - - 105,000
Interest 36,490 - - 36,490
Total expenditures 141,490 - 11,550 153,040
Excess (deficiency) of revenues
over expenditures 318,383 2,209 (11,550) 309,042
Other financing sources (uses):
Transfers in 60,300 - - 60,300
Transfers out 357,040 - - (357,040)
Total other financing sources (uses) 296 740 - - (296,740)
Net change in fund balances 21,643 2,209 (11,550) 12,302
Fund balances, beginning 272,801 15,692 374,460 662,953
Fund balances, ending $ 294,444 $ 17,901 $ 362,910 $ 675,255
-62-
VILLAGE OF TEQUESTA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
SPECIAL REVENUE FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2005
Variance
with
Final
Budget -
Bud eted Amounts Actual Positive
Original Final Amounts (Negative
Revenues:
Franchise fees $ 357,900 $ 357,900 $ 367,778 $ 9,878
Licenses and permits 78,240 78,240 83,831 5,591
Miscellaneous 2,200 2,200 8,264 6,064
Total revenues 438,340 438,340 459,873 21,533 '
Operating expenditures:
Debt service:
Principal 105,000 105,000 105,000 -
Interest 36,600 36,600 36,490 110
Total expenditures 141,600 141,600 141,490 110
Excess of revenues over expenditures 296,740 296,740 318,383 21,643
Other financing sources:
Transfers in 60,300 60,300 60,300 -
Proceeds from notes payable 357,040 (357,040 357,040 -
Total other financing sources (uses) 296,740 296,740 (296 -
Net change in fund balance $ $ - $ 21,643 $ 21,643
-63-
VILLAGE OF TEQUESTA, +AoRIDA
BUDGETARY COMPARISON SCHEDULE
CAPITAL PROJECTS FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2005
Variance
with
Final
Budget -
Budaeted Amounts Actual Positive
O_ riainal Final Amounts a ative
Revenues $ - $ - $ - $ -
Expenditures:
Public safety - 8,315 8,315 -
Capital outlay 3,291,420 3,449,937 601,987 2,847,950
Total expenditures 3,291 3,458,252 610,302 2,847,950
Deficiency of revenues over expenditures 3,291,424 3,458,252 (610,30 2,847,950
Other financing sources and uses:
State grant 200,000 200,000 - (200,000).
Transfers in 2,711,800 2,873,946 2,711,800 (162,146)
Appropriated fund balance 379,620 384,306 - 384,30
Total other financing sources (uses) 3,291,420 3,458,252 2,711,800 746,452
Net change in fund balance $ - $ - $2,101,498 $2,101,498
-64-
i
NONMAJOR ENTERPRISE FUNDS
NONMAJOR ENTERPRISE FUNDS
Stormwater Fund — This fund is used to account for the drainage and stormwater
collection for the Village.
Refuse and Recycling Fund — This fund is used to account for the fees charged for solid
waste and recyclable material collection.
VILLAGE OF TE uau, FLORIDA
COMBINING STATEMENT OF NET ASSETS
NONMAJOR ENTERPRISE FUNDS
SEPTEMBER 30, 2005
Total
Nonmajor
Stormwater Refuse & Enterprise
Utility Recycling Funds
ASSETS
Current assets:
Cash and cash equivalents $ 229 $ 351 $ 580
Investments 468,651 162,758 631,409
Accounts receivable 5,605 2,132 7,737
Other assets 15 - 15
Total current assets 474,500 165,241 639,741
Non - current assets:
Capital assets not being depreciated 8,172 - 8,172 .
Capital assets being depreciated 1,349,370 - 1,349,370
Total noncurrent assets 1,357,542 - 1,357,542
Total assets 1,832,042 165,241 1,997,283
LIABILITIES AND NET ASSETS
Current liabilities:
Accounts payable 49,361 21,287 70,648
Accrued liabilities 1,258 - 1,258
Total current liabilities 50,619 21,287 71,906
Long -term liabilities:
Compensated absences 253 - 253
Total Iong -term liabilities 253 - 253
Total liabilities 50,872 21,287 72,159
Net assets:
Invested in capital assets 1,357,542 - 1,357,542
Unrestricted 423,665 143,954 567,619
Total net assets $1,781,207 $143,954 $1,925,161
-65-
VILLAGE OF TEQUEsTA, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
NONMAJOR ENTERPRISE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2005
Total
Nonmajor
Stormwater Refuse & Enterprise
Utility Recycling Funds
Operating revenues:
Charges for services $ 298,188 $277,589 $ 575,777
Total operating revenues 298,188 277,589 575,777
Operating expenses:
Personal services 27,100 - 27,100 .
Purchased services - 255,615 255,615
Depreciation 64,694 - 64,694
Management services - 5,100 5,100
Communication 597 - 597`
Professional services 50,397 - 50,397
Total operating expenses 142,788 260,715 403,503
Operating income 155,400 16,874 172,274
Non - operating revenues:
Interest income 13,910 6,394 20,304
Miscellenaous 201 - 201
Total non - operating revenues 14,111 6,394 20,505
Income before transfers 169,511 23,268 192,779
Transfers out 60,300 - 60,300
Change in net assets 109,211 23,268 132,479.
Net assets, beginning 1,671,996 120,686 1,792,682
Net assets, ending $1,781,207 $143,954 $1,925,161 .
-66-
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2005
Total
Nonmajor
Stormwater Refuse & Enterprise
Utility Recycling Funds
Cash flows from operating activities:
Cash received from customers, governments and other funds $ 296,415 $ 278,217 $ 574,632
Cash paid to suppliers (8,862) (284,030) (292,892)
Cash paid to employees 26,748 - 26,748
Net cash provided by (used in) operating activities 260,805 5,813 254,992
Cash flows from non - capital financing activities:
Transfers to other funds 60,300 - 60,300
Net cash used in non - capital financing activities 60,300 - 60,300
Cash flows from capital and related financing activities:
Acquisition and construction of fixed assets 60,808 - 60,808
Net cash used in capital and related financing activities (60,808} - 60,808
Cash flows from investing activities:
Purchases of investments (153,443) (230) (153,673)
Interest received on investments 13,910 6,394 20,304
Net cash provided by (used in) investing activities 139,533) 6,164 133,369
Net increase in cash and cash equivalents 164 351 515
Cash and cash equivalents, beginning 65 - 65
Cash and cash equivalents, ending $ 229 $ 351 $ 580
Adjustments to reconcile operating income to net cash
provided by operating activities:
Operating income $ 155,400 $ 16,874 $ 172,274
Miscellaneous revenue 201 - 201
Depreciation 64,694 - 64,694
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable (1,974) 629 (1,3455)
Other assets (14) - (14)
Increase in accounts payable and accrued liabilities 42,498 23,316 19,182
Net cash provided by (used in) operating activities $ 260,805 $ (5,813 $ 254,992
-67-
FIDUCIARY FUNDS
FIDUCIARY FUNDS
Firefighters' Pension Trust Fund — This fund accounts for the accumulation of
resources and for contributions and benefits of the firefighter employees.
Police Officers' Pension Trust Fund — This fund accounts for the accumulation of
resources and for contributions and benefits of the police employees.
General Employees' Trust Fund — This fund accounts for the accumulation of
resources and for contributions and benefits for the general employees of the Village.
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
SEPTEMBER 30, 2005
Police General
Firefighters' Officers' Employees'
Pension Pension Pension Total
ASSETS
Cash and cash equivalents $ 113,054 $ 33,278 $ 11,105 $ 157,437
Investments:
Corporate stocks 1,234,876 363,491 341,736 1,940,103
Corporate bonds 42,887 12,624 - 55,511
Government backed assets 830,402 244,438 231,504 1,306,344
Contribution receivable 21,920 3,250 5,210 30,380
Total assets 2,243,139 657,081 589,555 3,489,775 .
LIABILITIES AND NET ASSETS
Accounts payable 2,092 570 4,060 6,722
Due to other funds 300 - - 300
Total liabilities 2,392 570 4,060 7,022
Net assets held in trust for pension benefits $ 2,240,747 $ 656,511 $ 585,495 $ 3,482,753
-68-
VILLAGE OF TEQUESTA, FLORMA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2005
Police General
Firefighters' Officers' Employees'
Pension Pension Pension Total.
ADDITIONS
Contributions:
Employer $ 115,072 $ 49,002 $ 98,658 $ 262,732
Employee 54,220 29,119 56,506 139,845
State 92,522 65,700 - 158,222
Total contributions 261,814 143,821 155,164 560,799
Investment income
Net appreciation in fair value of investments 67,018 17,769 53,556 138,343
Investment earnings 64,962 17,283 2,272 84,517
131,980 35,052 55,828 222,860.
Less investment expenses 18,024 4,772 1,647 24,443
Net investment income 113,956 30,280 54,181 198,417
Total additions 375,770 174,101 209,345 759,216
DEDUCTIONS
Pension benefits and refunds 15,465 13,124 47,038 75,627
Operating expenses 14,051 3,673 10,523 28,247
Total deductions 29,516 16,797 57,561 103,874
Net increase 346,254 157,304 151,784 655,342
Net assets held in trust for pension benefits:
Net assets, beginning 1,894,493 499,207 433,711 2,827,411
Net assets, ending $ 2,240,747 $ 656,511 $ 585,495 $ 3,482,753
-69-
,o r
3
STATISTICAL SECTION
.... ......................... ............................... ........... .
VILLAGE OF TEQUESTA, FLORIDA
GOVERNMENT -WIDE EXPENSES
LAST TEN FISCAL YEARS (1)
Governmental Entities Business -type Activities
Interest
on Other
Fiscal General Public Leisure Long -Teri Community Enterprise
Y ear Govermneu Tra ortation afe Senrices debt Water Developmen Activities Total
2003 $1,299,812 $ 474,134 $3,649,803 $ 385,192 $ 277,855 $3,881,752 $ 593,105 $ 507,902 $11,069,555
2004 1,105,741 $04,523 4,138,374 458,659 262,479 3,975,766 513,101 408,470 11,667,113
2005 1,361,013 656,158 4,691,063 605,745 248,728 4,026,027 - 403,503 11,992,237
(1) Information for fiscal years September 30, 2002 and prior is unavailable.
-70-
VILLAGE OF TEQUESTA, FLORIDA
GOVERNMENT -WIDE REVENUES
LAST TEN FISCAL YEARS (1)
Program Revenues General Revenue
Contributions
Operating not
Charges Grants Attnbuted to Loss on Sale
Fiscal for and Inter- Specific of Capital
Year Service Contributions Taxes governmenta Programs Interest Miscellane As Total
2003 $6,144,651 $ 56,517 $4,836,923 $ 520,921 $ 150 $ 160,238 $ 822,819 $ - $12,542,219
2004 5,851,907 43,945 5,243,088 558,069 - 155,329 165,702 (1,008,734) 11,009,306
2005 5,872,616 515,438 5,579,540 622,457 - 378,751 1,320,055 - 14,288,857
(1) Information for fiscal years September 30, 2002 and prior is unavailable.
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VILLAGE OF TEQUESTA, IFLORIDA
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (UNAUDITED) (1)
LAST TEN FISCAL YEARS
Fiscal General Public Human Leisure Capital Debt
Year Govern men Safe Transportation Services Service _ Qutla y Service Totals
1996 $ 815,361 $ 2,578,374 $ 512,984 $ 1,033 $161,766 $1,333,911 $ 206,861 $ 5,610,290
1997 747,024 2,472,639 409,404 1,033 208,619 810,975 207,771 4,857,465
1998 964,623 2,572,384 413,501 1,255 243,768 367,896 252,229 4,815,656
1999 839,914 2,671,668 296,321 2,984 239,017 1,811,211 409,917 6,271,032
2000 895,633 2,649,089 381,372 35 245,130 440,175 493,188 5,104,622
2001 1,216,011 2,996,439 430,813 - 238,843 1,385,665 650,454 6,918,225
2002 3,229,968 1,139,653 403,363 - 325,326 4,051,287 2,131,261 11,280,858
2003 1,289,050 3,443,961 440,263 - 347,975 1,439,667 748,076 7,708,932
2004 1,225,550 3,918,798 776,273 - 384,980 368,303 581,759 7,255,663
2005 1,314,270 4,351,936 625,014 - 523,439 870,453 591,773 8,276,885
(1) Includes General, Special Revenue and Capital Projects Funds.
Source: Village of Tequesta financial records.
-72-
VILLAGE OF TEQUESTA, ]FLORIDA
GENERAL REVENUES BY SOURCE (1)
LAST TEN FISCAL YEARS
Licenses Charges Fines
Fiscal and Inter- for and Miscellaneous
Year Taxes Pe 'ts L3 governmenta Services Forfeitures (2) Totals
1996 $ 3,184,007 $ 246,450 $ 950,477 $ 213,283 $ 78,578 $ 279,658 $ 4,952,453
1997 3,279,491 91,570 471,023 291,711 63,343 298,757 4,495,895
1998 3,542,883 89,203 485,648 273,779 74,641 292,526 4,758,680
1999 3,784,810 104,428 532,558 300,073 71,780 449,542 5,243,191
2000 3,962,782 96,975 644,679 264,018 46,465 516,999 5,531,918
2001 4,102,022 83,702 573,933 302,072 48,501 496,943 5,607,173
2002 4,502,446 108,429 638,106 382,650 73,758 645,105 6,350,494
2003 4,836,923 103,564 575,986 362,663 58,467 589,810 6,527,413
2004 5,243,088 93,601 640,892 477,513 57,413 515,337 7,027,844
2005 5,579,540 549,884 622,457 490,995 352,254 1,652,056 9,247,186
(1) Includes General, Special Revenue and Capital Projects Funds.
(2) Includes intragovmmment services, impact fees, interest income and planning and zoning.
(3) Beginning 1997, building permits reported in the Community Development Enterprise Fund.
Occupational licenses are included in this report.
Source: Village of Tequesta financial records.
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VILLAGE OF TEQUESTA, FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS (1)
LAST TEN FISCAL YEARS
Total Current Delinquent
Tax Tax Percent Outstanding Taxes
Fiscal Levy Collections of Levy Delinquent to Tax
Year W (2j Collected Taxes imy
1996 $2,166,385 $2,158,420 99.6% $ 7,965 0.4%
1997 2,270,529 2,263,146 99.7% 7,383 0.3%
1998 2,457,085 2,450,091 99.7% 6,994 0.3%
1999 2,653,474 2,642,313 99.5% 11,161 0.4%
2000 2,858,426 2,846,894 99.6% 11,532 0.4%
2001 2,985,994 2,970,942 99.5% 15,052 0.5%
2002 3,271,160 3,147,730 96.2% 5,816 0.2%
2003 3,520,466 3,388,176 96.2% 13,983 0.4%
2004 3,912,003 3,776,782 96.5% 3,750 0.1%
2005 4,650,578 4,486,224 96.5% 5,338 0.1%
(1) The tax levied in the fiscal year is based on the taxable value of the prior year.
(2) Includes discounts taken by property taxpayers.
Source: Palm Beach County Tax Collector's office.
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VILLAGE OF TEQUESTA, FLORIDA
TAXABLE VALUE AND JUST VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Ratio of
Taxable
Centrally Value
Real Pronextr+ Personal Property Assessed Property Total to
Fiscal Taxable Just Taxable Just Taxable Just Taxable Just Just
Year Value Value Value Value Value Value Value Value Value
1996 $ 337,376,976 $ 424,956,672 $16,264,236 $18,268,307 $ - $ - $ 353,641,212 $ 443,224,979 80%
1997 346,611,843 436,504,082 16,332,495 18,374,057 - - 362,944,338 454,878,139 80%
1998 366,649,040 454,995,565 17,405,293 19,996,199 - - 384,054,333 474,991,764 81%
1999 391,373,771 487,378,779 16,920,043 20,210,854 - - 408,293,814 507,589,633 80%
2000 422,707,903 522,797,351 18,949,389 21,865,379 278,827 278,827 441,936,119 544,941,557 81%
2001 468,569,608 601,222,227 18,641,610 21,621,054 279,734 279,734 487,490,952 623,123,015 78%
2002 503,562,346 672,688,887 19,211,494 22,202,297 287,762 287,762 523,061,602 695,178,946 75%
2003 583,470,308 789,428,369 19,488,528 22,409,087 326,474 326,474 603,285,310 812,163,930 74%
2004 695,900,596 950,969,798 19,752,631 22,669,061 340,485 340,485 715,993,712 973,979,344 74%
2005 804,692,586 1,159,686,579 20,372,762 23,286,106 340,839 340,839 825,406,187 1,183,313,524 70%
Source: Palm Beach County Tax Collector's Office:
Form DR -403AM '"The 2004 Revised Recapitulation of the Ad Valorem Assessment Rolls of Tequesta,
Palm Beach County, Florida!' February 15, 2005.
-75-
VILLAGE OF TEQUESTA, IFLORIDA
PROPERTY TAX RATES - ALL DIRECT AND OVERLAPPING GOVERNMENTS
(Per $1,000 of Assessed Valuation)
LAST TEN FISCAL YEARS
South
Florida Florida County
County Water Jupiter Navigational Children's Health
Fiscal General County Everglades School County Management Inlet Inland Service Care
Year F un d Coun Debt Constructi on Board Lim Dist 'ct District District ouncil ' trict Total
1996 6.3425 4.5191 - - 9.7970 0.4838 0.5470 0.1240 0.0400 0.3730 1.4250 23.6514
1997 6.4693 4.8660 - - 9.5570 0.4997 0.6970 0.1203 0.0500 0.4530 1.1600 23.8723
1998 6.6310 4.8666 0.2582 0.1000 9.5570 0.4977 0.6970 0.1203 0.0500 0.4530 1.1600 24.3908
1999 6.7305 4.8580 0.3456 0.1000 9.6820 0.5246 0.6970 0.1180 0.0470 0.4403 1.0500 24.5930
2000 6.7305 4.9362 0.3362 0.1000 8.9180 0.5403 0.6970 0.1091 0.0410 0.5000 I.0250 23.9333
2001 6.7305 4.9351 0.3851 0.1000 8.9480 0.5403 0.6970 0.1012 . 0.0385 0.5703 1.1500 24.1960
2002 6.7305 4.5000 0.3084 0.1000 8.7790 0.5403 0.5970 0.0916 0.0385 0.6228 1.1300 23.4381
2003 6.4980 4.5000 0.2910 0.1000 8.5710 0.58_33 0.5970 0.0916 0.0385 0.6902 1.1300 23.0906
2004 6.4980 4.5000 0.2677 0.1000 8.4320 0.5807 0.5970 0.0916 0.0385 0.6902 1.1100 22.9057•
2005 6.4980 4.4500 0.2692 0.1000 8.1060 0.6250 0.5970 0.0916 0.1000 0.6887 1.0800 22.6055
Source: Palm Beach County Property Appraiser's Office
-76-
VILLAGE OF TEQUESTA, FLORIDA
COMPUTATION OF LEGAL DEBT MARGIN
SEPTEMBER 30, 2005
Total assessed value $ 825,654,476
Legal debt margin:
Debt limitation -10% of total assessed value $ 82,565,448
Total bonded debt outstanding $ 490,000
Less amount available in debt service fiunce 294,444
Total debt applicable to limitation 195,556
Legal debt margin $ 82,369,892
Palm Beach County Property Appraiser's Office,
Form DR-420 "Certificate of Taxable value
ro) 1BR -Special Revenue
-77-
VILLAGE OF TEQUESTA, FLORIDA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDMJRES
LAST TEN FISCAL YEARS
Ratio
of
Debt
Service
to
Total Total
Total General General
Fiscal Debt Governmental Governmental.
Year Principal Interest Service Expenditures Expenditures
1996 $ 100,556 $106,305 $ 206,861 $ 5,610,290 3.7%
1997 104,059 103,712 207,771 4,857,465 4.3%
1998 138,071 114,158 252,229 4,815,656 5.2%
1999 246,325 163,592 409,917 6,271,032 6.5%
2000 250,768 98,460 349,228 5,104,622 6.8%
2001 453,354 197,545 650,899 6,918,225 9.4%
2002 90,000 54,120 144,120 7,273,446 2.0%
2003 95,000 48,585 143,585 7,708,932 1.9%
2004 100,000 42,743 142,743 7,255,663 2.0
2005 105,000 36,490 141,490 7,513,542 1.9%
-78-
VILLAGE OF TEQUESTA, FLORIDA
COIVLPUTATION OF DIRECT AND OVERLAPPING DEBT
SEPTEMBER 30, 2005
Percentage Amount
Net Applicable Applicable
Debt to to
Tgg;jUAuthority Outstandins Tequesta Te uesta
Direct:
Village of Tequesta $ 195,556 100.00% $ 195,556
Overlapping:
Palm Beach County 283,885,000 64.00% 181,686,400
Palm Beach County School Board 126,875,000 64.00% 81,200,000
Total overlapping 410,760,000 262,886,400
Total $ 410,955,556 $ 263,081,956
Source: Governmental entities noted above.
-79-
VILLAGE OF TEQUESTA, FLORIDA
RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND
NET BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS
Ratio
of
Net
(B) Bonded Net
(A) Debt Debt Bonded
Gross Service Net to Debt
Fiscal Taxable Bonded Monies Bonded Assessed Per
Year Population Value Debt Available Debt Value Capita
1996 4,637 $ 353,641,212 $1,250,000 $ 35,977 $1,214,023 0.34% $ 261.81
_ 1997 4,686 362,944,338 1,185,000 39,562 1,145,438 0.32% 244.44
1998 5,036 384,054,333 1,115,000 48,871 1,066,129 0.28% 211.70
1999 5,122 408,293,784 1,040,000 75,874 964,126 0.24% 188.23
2000 5,273 441,936,119 960,000 118,738 841,262 0.19% 159.54
2001 5,307 487,490,952 880,000 141,912 738,088 0.15% 139.08
2002 5,327 525,401,605 790,000 141,913 648,087 0.12% 121.66
2003 5,333 603,285,310 695,000 224,676 470,324 0.08% 88.19
2004 5,648 715,993,712 595,000 272,801 322,199 0.05% 57.05
2005 5,686 825,406,187 490,000 294,444 195,556 0.02% 34.39
Sources: Palm Beach County Planning Board
University of Florida estimates
Federal census
Palm Beach County Metro - Planning Organisation
PBC Property Appriaser's Office, Form DR -403AM -The 2003 Revised Recapitulation of the Advalorem Assessment Rolls
-80-
... ..... ....... ....._.., .. _..._._........... . ... .. ........ ......... ... ...........
...
VILLAGE OF TEQUESTA, FLORIDA
REVENUE BOND COVERAGE
WATER BONDS
LAST TEN FISCAL YEARS
Net
Revenue
Available
for Debt Service Debt
Fiscal Gross Operating Debt Requirements Amortization Service
Year Revenue Expenses (3) Service Principal Interest Account I Total Covera e
1996 $3,283,922 S 2,451,485 $ 832,437 $270,000 $17,355 S (7,525) $279,830 3.92
1997 (2) - - - - - - - -
1998 3,527,292 2,141,071 1,386,221 - 198,789 - 198,789 6.97
1999 3,910,167 2,179,525 1,730,642 - 389,740 - 389,740 4.44
2000 4,159,538 2,228,211 1,931,327 135,000 387,175 - 522,175 3.70
2001 4,077,925 2,351,739 1;726,186 140,000 384,610 - 524,610 3.29
2002 3,597,159 2,665,701 931,458 145,000 376,038 - 521,038 1.79
2003 4,082,459 2,718,444 1,364,015 160,000 363,325 - 523,325 2.61
2004 3,931,562 2,810,719 1,120,843 165,000 356,255 - 521,255 2.15
2005 3,991,355 2,921,755 1,069,600 165,000 356,255 - 521,255 2.05
(1) This relates to a 1985 Water Refunding Revenue Bond issue that required the purchase of $980,000 par
amount of U.S. Treasury Bonds. The purchase price of the bonds, less the interest earned, was added to the
debt service for that year. The final principal payment on the 1985 bonds was made on September 30,1996.
(2) The Village did not have any outstanding Revenues Bonds this fiscal year.
(3) Operating expenses, excluding depreciation.
-81-
VILLAGE OF T FQUESTA, FLORIDA
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
LAST TEN FISCAL YEARS
New Commercial New Residential Just Property
Construction 111 Construction (1 Value 2
Number Number
Fiscal of Value of Value Real Personal
Year Units New Re . Units New Rebuil D osi 1?ran Prggerty
1996 3 $2,248,278 $ - 6 $1,127,624 $ - $319,213,870 $ 424,956,672 $18,268,307
1997 2 320,400 - 169 14,896,648 - 314,744,875 436,504,082 18,374,057
1998 2 2,852,090 - 12 3,080,959 - - 454,995,565 19,996,199
1999 5 11,374,822 - 11 2,722,156 - - 487,378,779 20,210,854
2000 2 9,485,904 - 7 2,421,146 - - 522,793,351 21,865,379
2001 9 3,176,655 - 1 500,000 - - 601,222,227 21,621,054
2002 1 50,000 - 157 20,931,741 2,937,961 - 672,688,887 22,202,297
2003 11 - 185,049 29 7,040,365 124,500 - 789,428,369 22,409,087
2004 19 2,337,709 1,130,599 33 5,400,911 350,561 - 950,969,798 22,669,061
2005 19 4,450,272 1,426,310 17 4,574,068 923,451 - 1,159,686,579 23,286,106
Source:
(1) Village of Tequesta Building Department
(2) Palm Beach County Property Appraiser's Office.
-82-
VILLAGE OF TEQUESTA, FLORIDA
PRINCIPAL TAXPAYERS
SEPTEMBER 30, 2005
Percentage
't 2004 of
of Assessed Assessed
Business Valuation Valuation
Tamwest Realty, Inc. (County Line Plaza) Shopping Center $ 9,185,931 1.11%
Inland Southeast Tequesta, LLC ( Tequesta Shoppes) Shopping Center 8,704,807 1.05%
Terrace Communities Tequesta Assisted Living Facility 7,765,828 0.94%
Cohen Square, LLC Shopping Center 6,100,000 0.74%
Jeef Lee, LLC Private Residence 4,183,052 0.51%
Cornerstone Tequesta Commercial Developer 4,179,221 0.51%
Kraft Robert J. Private Residence 4,081,660 0.49%
AHC Purchaser, Inc. Assisted Living Facility 3,900,000 0.47%
Tequesta Country Club
Golf Club 3,888,659 0.47%
JMZ Tequesta Properties, Inc. Professional Office 3,363,432 0.41%
$ 55,352,590 6.70
Source: Palm Beach County Property Appraiser's Office
(1) Village of Tequesta, Community Development
-83-
VILLAGE OF TEQUESTA, FLORIDA
MISCELLANEOUS STATISTICS
SEPTEMBER 30, 2005
Date of Incorporation 1957
Forms of Governmen Council- Manager, 3 Councilmembers elected
even years, 2 Councilmembers elected odd years
Municipal Elections Non - Partisan
Area Approximately 2 square miles
Miles of Streets Approximately 47.6 lane miles
Fire Protection Number of stations - 1
Number of certified firefighters -16 F/T, 1 Temp, 4 P/T
Fire Rating - 4
Police Protection Number of stations -1
Number of certified officers - 18 F/T
Number of dispatchers - 4 F/T, 1 P/T
Municipal Water Departmen Number of customers - 4,724
Average daily consumption - 2.840 million gallons
Miles of water mains - approximately 75 miles
Sanitary Sewage Service provided by Loxahatchee River Environmental
Control District (ENCON)
Storm Sewers Adequatc coverage
Garbage Collection Service franchised to Nichol's Sanitation
Frequency of service is bi- weekly
Electric Service Florida Power & Light Company
Telephone Service BellSouth
Building Permits Issue 1,272
Recreation and Culture Number of parks - 3, approximately 48 acres
Number of libraries -1, branch of Palm Beach County System
Number of volumes - 26,000
Municipal Employee Full -titre - 69
-84-
VILLAGE of TEQUESTA, FLORIDA
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
Unemployment
Fiscal Population Rate
Year
1996 4,637 7.5%
1997 4,686 3.6%
1998 5,036 4.7%
1999 5,122 5.7%
2000 5,273 52%
2001 5,307 5.5%
2002 5,327 5.1%
2003 5,333 6.2 0 /o'
2004 5,648 5.7%
2005 5,686 3.1%
Sources:
(1) Palm Beach County Planning Board, University of Florida Estimates and Federal Census.
(2) Agency for Workforce Innovation (AWI) (September to September - local area by county -
not seasonally adjusted).
-85-
.............. _ ... ... ............................... _ ................
....._.........- ....... ....... .
VILLAGE OF TEQUESTA, FLORIDA
SCHEDULE OF INSURANCE
SEPTEMBER 30, 2005
Policy Number Coverage
PGIT Package Policy
Building, Contents, Boiler and Machinery PKFL 1050250504 $11,822,329
Inland Marine PKFL 1050250504 $1,204,577
General Liability PKFL 1050250504 $2M/$4M
Group Life Insurance 860050270 1.5 times annual salary plus $5,000
to a maximum of $150,000 plus $5,000
Group Hospitalization Cigna 3150680 Various
Business Automobile Liability PKFL 1050250504 $2,000,000
Fidelity Bond - Employee Honesty CPP001750010 $100,000
Public Officials Bond Zurich 08538214 $100,000
Workers' Compensation PGIT139103 $1,000,000
EMT Professional Liability PKFL 1050250504 $2,000,000
Public Official's Errors and Omissions PKFL 1050250504 $1,000,000
Police Professional Liability PKFL 1050250504 $2,000,000
Boiler and Machinery Liability PKFL 1050250504 $11,822,329
Group Accident Policy (Police and
Fire Department Personnel) ETB 102089 Various
Pollution Liability FPL7509020 #2 $1,000,000
Fiduciary Liability (Pension Board of Trustees) Travelers 10350525 $2,000,000
-86-
Page Intentionally Left Blank
4
COMPLIANCE SECTION
Cohen
Accountants . Advisors
Report of Independent Certified Public Accountants on Internal Control over
Financial Reporting and on Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance with Government Auditing Standards
Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
We have audited the financial statements of the governmental activities, the business -type activities,
each major fund, and the aggregate other remaining fund information of the Village of Tequesta,
Florida (the Village) as of September 30, 2004 and for the year then ended, and have issued our report
dated February 24, 2006. We conducted our audit in accordance with generally accepted auditing
standards and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Village's internal control over financial
reporting in order to determine our auditing procedures for the purpose of expressing our opinions on
the financial statements and not to provide assurance on the internal control over financial reporting.
Our consideration of the internal control over financial reporting would not necessarily disclose all
matters in the internal control over financial reporting that might be material weaknesses. A material
weakness is a condition in which the design or operation of one or more of the internal control
components does not reduce to a relatively low level the risk that misstatements caused by error or
fraud 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. We noted no matters involving the internal control over financial reporting and its
operation that we consider to be material weaknesses.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Village's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations
and contracts, noncompliance with which could have a direct and material effect on the determination
of financial statement amounts. However, providing an opinion on compliance with those provisions
was not an objective of our audit and, accordingly, we do not express such an opinion. The results of
our tests disclosed no instances of noncompliance that are required to be reported under Government
Auditing Standards.
-87-
Raahfin Cohan & Noitz Lip
One Southeast Third Avenue u Tenth Floor a Miami, Florida 33131 a Phone 305,377.4228 r Fax 305.377,8331 ■ wmLrachlin.coin
An Mem7Qr of Bskw Tilly lnlarnatronal
M I A M I ■ F 0 R T L A 9 0 E A D A L E ■ IM E S 7 P A L M B E A C N n S 7 11 A R T
Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
Page Two
This report is intended for the information and use of the Mayor, Village Council, management and the
regulatory authorities and is not intended to be and should not be used by anyone other than the specified
parties.
4 4131 � -
Nest Palm Beach, Florida O
February 24, 2006
-88-
Cbhen
&ffO'
Accountants Advisors
R a C h 1 1* �C)��J'�j'l
"h "' '
Acccnintants - Advisers
1lanaaetment Letter in :accordance ,vith the Rules of the auditor General ot'tbe State of rlorida
Honorable Mayor, Village Council and Village Manager
Village., of Te(luesta, Florida
We have audited the financial statements of the governmental activities, the busine.s -type activities, each
major fund, and the aggregate remaining fund information of the Village of Tequesta, Florida ' the
Village) as of and for the year then ended, and have issued a report thereon dated February 24, 2006. We
conducted our audit in accordance with generally accepted auditing* standards and the standards
applicable to financial audits contained in Government .iudiring Sretndards, issued by the Comptroller
General of the United States. We have issued our Report (11' Independent Certified Public Accountants on
Compliance and on Internal Control over Financial Reporting. Disclosure in these reports dated
February 24, 2006 should be considered in conjunction with this management letter.
In connection with our audit of the basic financial statements of the Village for the year ended
September 30. 2005. we report the following in accordance with Chapter 10.550 Rules of the Auditor
General Local Governmenrol F.nriry Audits which requires that this report specifically address but not
be limited to the matters outlined in Rule 10.554( l)(h):
I. Recommendations made in the preceding financial audit to improve the p='illage's present financial
ma,nagemem accounting procedures and internal controls have been implemAmtod.
2. The Villa-t; was in compliance with Section 218.415. Florida Statutes regarding the investment of
public funds.
3. There are no recomrn ndations to improve the Villa.ge's present financial management, accounting
prmedures and internal controls.
4. During the course of our audit, other than matters that are clearly inconsequential, considering
both quantitative and qualitative factors, nothing came to our attention that caused us to believe
that the Village:
a. Was in violation of any laws, rules or regulations and contractual provisions.
b. Made ille�,al or improper expenditures.
c. Had improper or inadequate accounting procedures.
d. Failed to record financial transaction which could have ,► material effect on the Village's
financial statements.
e. Had other inaccuracies, shortages, defalcations, and inoancos of fraud discovered by, or that
came to the attention of the auditor.
11 9
Raehlin Cohen 6 Nolte up
One Southeast Thira Avenue ■ Tenth Fioor o Miami, Florida 331 11 . Phone 30'.3.T".A228 o fax 3115 3i?.633' • www_rufIfin.com
N I A N I • F 0 2 T L A U@ 1 2 0 A L E W E S T P A L N 9 C A C M + S t U A A T
Honorable Mayor, Village Council and Village Manager
Village ofTequesta, Florida
Page Two
5. The Village was incorporated in 1957 by Laws of Florida 57 -1915. Them; are no component
units.
6. a. The Village, during fiscal year 2005, was not in a state of financial emergency as defined by
Florida Statute, Section 2 18.503(1).
h. The annual financial report for the year ended September ?0, 2005 ha been tiled with the
Department of Financial Services pursuant to Section 215.32(I)(a), Florida St wtC.S and is in
agreentent with the audited financial statements of the same period.
c. During the course of our audit, we applied financial condition assessment procedures
pursuant to Rule 10.566(8). It is management's responsibility to monitor the Village's
financial condition, and our financial condition assessment, which was performed as of the
Village's fiscal year end, was based on representations made by management and the review
of financial information provided by the Village. 'There were no findings that identified
deteriorating financial conditions.
This report is intended for the information of the Mayor, Village Council, management, and the Auditor
General of the State of Florida and is not intended to be and should not be used by ;utY ran,. other than
those specified parties.
.. , ,4A-
w
West Palm Beach, Florida
February 24, 2006
_90-
Accountants Advi�tsrs