CAFR_FY Ending_09/30/2002 Comprehensive Annual Financial Report
Village of Tequesta, Florida
Fiscal Year Ended September 30, 2002
VILLAGE OF TEQUESTA, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 2002
PREPARED BY
FINANCE DEPARTMENT
THE VILLAGE OF TEQUESTA, FLORIDA
VII.LAGE OF TEQUESTA, FLORIDA
TABLE OF CONTENTS
PAGE
1. INTRODUCTORY SECTION
Letter of Transmittal i
Certificate of Achievement for Excellence in Financial Reporting ix
Organization Chart x
List of Principal Officials xi
2. FINANCIAL SECTION
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS 1 -2
GENERAL PURPOSE FINANCIAL STATEMENTS (Combined Statements - Overview)
Combined Balance Sheet - All Fund Types and Account Groups 3 -5
Combined Statement of Revenues, Expenditures and Changes in Fund Balances - 6
All Governmental Fund Types and Expendable Trust Fund
Combined Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual — Governmental Fund Types 7 -8
Combined Statement of Revenues, Expenses and Changes in Retained Earnings -
Enterprise Funds 9
Combined Statement of Cash Flows — Proprietary Fund Type 10
Combined Statement of Changes in Plan Net Asset — Pension Trust Funds 11
Notes to General Purpose Financial Statements 12 -35
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Contributions from the Employer and Other Contributing Entities 36
Notes to the Required Supplementary Information 37
SUPPLEMENTARY INFORMATION
General Fund:
Schedule of Revenues — Budget and Actual 38-39
Schedule of Expenditures — Budget and Actual 40 -44
Capital Projects Funds:
Combining Balance Sheet 45
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 46
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual 47
VILLAGE OF TEQUESTA, FLORIDA
TABLE OF CONTENTS
(Continued)
PAGE
2. FINANCIAL SECTION (Continued)
SUPPLEMENTAL INFORMATION (Continued)
Proprietary Funds (Enterprise Funds):
Combining Balance Sheet 48
Combining Statements of Revenues, Expenses and Changes in Retained Earnings 49
Combining Statement of Revenues, Expenses and Changes in Retained Earnings -
Budget and Actual 50
Combining Statement of Cash Flows 51
Fiduciary Funds:
Combining Balance Sheet 52
Combining Statement of Plan Net Assets 53
Combining Statements of Changes in Plan Net Assets 54
General Fixed Assets Account Group:
Schedule of General Fixed Assets - By Source 55
Schedule of General Fixed Assets - By Function and Activity 56
Schedule of Changes in General Fixed Assets - By Function and Activity 57
3. STATISTICAL SECTION
General Governmental Expenditures by Function 58
General Governmental Revenues by Source 59
Property Tax levies and Collections 60
Assessed Value of Taxable Property 61
Property Tax Rates - All Direct and Overlapping Governments 62
Ratio of Net General Bonded Debt to Assessed Value 63
Computation of Legal Debt Margin 64
Direct and Overlapping Debt - General Obligation Debt 65
Ratio of Annual Debt Service Expenditures 66
Revenue Bond Coverage 67
Property Value and Construction 68
Principal Taxpayers 69
Demographic and Miscellaneous Statistics 70 -71
Schedule of Insurance 72
VILLAGE OF TEQuESTA, FLORIDA
TABLE OF CONTENTS
(Continued)
PAGE
4. 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 73 -74
Management Letter in Accordance with the Rules of the Auditor General of the
State of Florida 75 -76
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INTRODUCTORY SECTION
250 Tequesta Drive P: (561) 575 -6200
Tequesta, FL 33469 ( F: (561) 575 -6203
January 17, 2003
To the Citizens of the Village of Tequesta, Florida
RE: The Comprehensive Annual Financial Report
The Comprehensive Annual Financial Report for the Village of Tequesta, Florida (Tequesta) for the
fiscal year ended September 30, 2002 is hereby submitted. Responsibility for both the accuracy of
the data, and the completeness and fairness of the presentation, including all disclosures, rests with
Tequesta. To the best of our knowledge and belief, the enclosed data is accurate in all material
respects and is reported in a manner designed to present fairly the financial position and results of
operations of the various funds and account groups of Tequesta. All disclosures necessary to enable
the reader to gain an understanding of Tequesta's financial activities have been included.
The Comprehensive Annual Financial Report is presented in four sections: introductory, financial,
statistical and other reports. The introductory section includes this transmittal letter, Tequesta's
organizational chart and a list of principal officials. The financial section includes the general
purpose financial statements and schedules, as well as the auditor's report on the general purpose
financial statements. The statistical section includes selected financial and demographic
information, generally presented on a multi -year basis. The other reports section includes the
auditor's reports on internal control, compliance and the management letter.
This report includes all funds and account groups of Tequesta. Tequesta provides a full range of
services. These services include police protection; fire and emergency medical services; the
construction and maintenance of streets, bridges and infrastructure; recreational activities and
cultural events; and the operation of a municipal water supply system, in addition to general
government activities. Tequesta has a contract with a privately owned sanitation company for
refuse and recycling collection service.
ECONOMIC CONDITION AND OUTLOOK
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 2001/2002 increased approximately 7.3 %. The Village
will continue to monitor property values to ensure that any negative developments will be
immediately addressed with a fiscal policy necessary to maintain the financial integrity of the
Village's financial position, while keeping in mind the level of services provided and the associated
tax burden of our citizens.
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Recycled Paper
MAJOR INITIATIVES
The Village Council and the Administration remain committed to providing community
enhancements in an effort to enrich the quality of life for the residents of the Village of Tequesta.
The Mayor and Village Council have approved significant capital improvement projects to be
undertaken next year. The Administration will address these issues through prudent, responsible
financial planning and accounting practices.
• Prepare plan and specifications for the construction of a new Village Hall.
• Continue to explore annexation of contiguous properties in unincorporated Palm Beach
County.
• Prepare a comprehensive analysis of the Tequesta Water Utility and present a state of the
utility report.
• 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 levels, with the
assistance of a professional lobbyist.
• Expand water utility services to unincorporated customers, generating new revenues for the
utility.
• Conclude water utility negotiations with the Town of Jupiter, and to execute an agreement
that is mutually beneficial.
• Renegotiate contractual agreements for fire /rescue services, and building/inspections with
the Town of Jupiter Inlet Colony.
• Continue to evaluate and implement contemporary financial policies and procedures to
ensure the efficient and economical operation of the Village of Tequesta.
DEPARTMENT HIGHLIGHT
PARKS & RECREATION DEPARTMENT
With the Village Council approval, the Village of Tequesta Parks & Recreation was established in
January of 2002. The number one priority of the department was to survey the residents for their
wants and needs regarding recreation programming and new facilities.
From the results of the survey, the department has since offered the following programs and
addressed the following issues:
• Offer a full schedule of recreation programs for all ages
• Organized, planned, and directed three special events
• Modernized the Recreation Center and Council Chambers
• As a request from the Jupiter/Tequesta Athletic Association, Tequesta Park recently
completed renovations to the ball fields that included adding an irrigation system and
Bermuda Turfway 419 grass
• Added one part-time Recreation Supervisor
• Created a Recreation Center and Tequesta Park Pavilion Rental Policy
• Established a dog box sponsorship program
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• Continue to offer Concert in the Park Series
• With the departure of the YMCA, the Parks & Recreation Department will be offering both
Spring and Summer Day Camps.
INFRASTRUCTURE MAINTENANCE AND EXPANSION
Maintenance and expansion of the community's general infrastructure (such as roads, bridges,
sidewalks and stormwater drainage systems), streetscape beautification projects, expansion of
potable water treatment facilities and development/redevelopment of the Tequesta Village Center is
a priority of Tequesta. To address this concern, the government has developed a five -year capital
projects plan that provides a framework for the development and maintenance of infrastructure to
meet current and future needs.
This plan is revised each budget year in keeping with the priorities and needs of Tequesta. Also,
changes affecting budget projections may require changes to the capital projects plan that will
enable Tequesta to maintain adequate cash reserves and required fund balances.
The 2002 Capital Improvement Fund expenditures for capital outlay totaled $517,870 as follows:
Transportation and Drainage Improvements
Road Improvements/Paving Project $102,435
Country Club Drive — Landscaping & swale construction 123,962
Country Club Drive — Streetlights 80,267
Miscellaneous landscaping projects 31,778 $338,442
Culture and Recreation Improvements
Constitution Park Improvements $ 10,318
Tequesta Park — Park & Irrigation Improvements 152,487
Riverside Drive North Pathway Improvements 16,623 $179,428
Total Capital Improvement bind
The 2002 Capital Projects Fund expenditures for capital outlay totaled $3,341,923 as follows:
Transportation and Drainage Improvements
Main Street $174,525 $174,525
Building and Other Proiects
Public Safety Facility $3,086,916
Central Business District Redevelopment 43,400
Other Miscellaneous Capital Projects 37,082 $3,167,398
Total Capital Projects Additions L;
The 2002 Storm Water Utility Enterprise Fund expenses for capital additions totaled $236,683 as follows:
Cypress Drive South Drainage Improvements $232,440
Other Drainage Improvements 4,243 $236,683
Total Storm Water Utility Capital Additions
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The 2002 Water Utility expenses for capital additions totaled $495,935 as follows: .
Machinery, Equipment and Vehicles $ 73,015
R O. Plant Expansion 30,328
Tequesta Peninsula Projects 1 & 2 392,592 $495,935
Total Storm Water Utility Capital Additions
FINANCIAL INFORMATION
The management of the government is responsible for establishing and maintaining an internal
control structure designed to ensure that the assets of the government are protected from loss, theft
or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of
the financial statements in conformity with generally accepted accounting principles. The internal
control structure is designed to provide reasonable, but not absolute, assurance that these objectives .
are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not
exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires
estimates and judgments by management.
Budgetary Controls
In addition to conforming to generally accepted accounting principles, Tequesta maintains
budgetary controls. The objective of these budgetary controls is to ensure compliance with legal
provisions embodied in the annual appropriated budget approved by the Village Council. Activities
of the General Fund, Special Revenue Fund, Capital Project Funds and Enterprise Funds are
included in the annual appropriated budget. The level of budgetary control (that is, the level at
which expenditures cannot legally exceed the appropriated amount) is established at the individual
fund level. The government also maintains an encumbrance accounting system as one technique of
accomplishing budgetary control Encumbered amounts lapse at year -end. However, encumbrances
are generally re- appropriated as part of the following year's budget. As demonstrated by the
statements and schedules included in the financial section of this report, Tequesta continues to meet
its responsibility for sound financial management.
General Government Functions
Revenues
The following schedule presents a summary of General Fund, Special Revenue Fund, Capital
Project Funds and Expendable Trust Fund revenues for the fiscal year ended September 30, 2002,
and the amount and percentage of increases and decreases in relation to prior year revenues.
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REVENUES
Sources Current Year % of Total $ Change % Change
Taxes $ 4,502,446 70.90% $400,424 9.76%
Intergovernmental 638,106 10.05% 64,173 11.18%
Charges for services 382,650 6.03% 80,578 26.68%
Intragovernmental 327,270 5.15% 74,514 29.48%
Grants 142,207 2.24% 142,207 0.00%
Licenses & Permits 108,429 1.71% 24,727 29.54%
Interest 84,885 1.34% (109,102) - 56.24
Fines & Forfeitures 73,758 1.16% 25,257 52.08%
Miscellaneous 46,423 0.73% 307 0.67%
Impact Fees 44,320 0.70% 40,236 985.21%
Totals 56.350.494 100.00%
Taxes accounted for the major sources of revenues in actual resources received for 2002. Tax
revenues consist of three district revenue sources: ad valorem (property taxes), franchise fees and
utility service taxes. The ad valorem property tax rate for 2002 was 6.7305 mills. Property values
also increased 7.3% over the previous year valuation.
Eimenditures
The following schedule presents a summary of General Fund, Special Revenue Fund, Capital
Projects Funds, and Expendable Trust Fund expenditures, for the fiscal year ended September 30,
2002, and the amount and percentage of increases and decreases in relation to prior year amounts:
Sources Current Year % of Total $ Change %
Chan e
Public Safety $3,229,968 28.63% 233,529 0.08
General Government 1,139,653 10.10 (76,358) (0.06)
Transportation 403,363 3.58% (27,450) (0.06)
Cultu vRecreation 325,326 2.88% 86,483 0.36
Capital Outlay * 4,051,287 35.91% 2,665,622 1.92
Debt Service ** 2,131,261 18.89% 1,480,807 2.28
TOTALS X11.280.858 100.00%
* The major increase in capital outlay was due to the Building of a Public Safety Facility.
* * The major increase in debt service was due to principal retirement of the line -of- credit using
proceeds from a new $5 Million Loan with Bank of America.
Alternative revenue sources must be explored such as: expanding the property tax base by growth
and development in the community and possible implementing user fees for appropriate
government services.
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General Fund Balance
The undesignated balance of the General Fund was $2,697,708 as of September 30, 2002, which is
adequate to provide the capital resources for government operations. It is unlikely that Tequesta
will enter the short-term debt market to pay for current operating expenditures.
PROPRIETARY OPERATIONS
Water Operations
Tequesta's water utility operations are reported in the Water Enterprise Fund. Tequesta's potable
water system consists of a 2.73 million gallon per day water treatment plant and a distribution
system of approximately 50 miles of water mains and water storage facilities with a capacity of 1.75
million gallons. During F/Y 9/30/2002, Tequesta purchased 1.5 million gallons of water per day,
the contracted minimum, at a bulk rate from the Town of Jupiter, Florida. On December 23, 2002,
the Village of Tequesta approved a new Water Franchise Agreement with the Town of Jupiter that
extends through July 15, 2007.
Prior Change % Change
Cuurent Year Year from Prior Year from Prior Year
Charges for Services $3,597,159 $ 3,459,999 $137,160 3.96%
Total water consumption 1,135,642 1,013,172 122,470 12.10%
Average daily consumption 3.108 2.779 0.329 11.80%
Fiduciary Operations
Tequesta's fiduciary operations consist of an Expendable Trust Fund which was established to
account for forfeitures received by the Police Department.
In 1996, Tequesta established a Pension Trust Fund to account for the Village Employees' Pension
Trust Fund.
Debt Administration
General government debt service payments for retirement of the Improvement Revenue Refunding
Bonds, Series 1994, in the amount of $1,365,000, dated June 24, 1994, will be reported in the
Special Revenue Fund.
Tequesta has a legal debt limit established by Section 6.02 of the Village Charter. The aggregate
indebtedness regardless of type (general obligation bonds, revenue bonds or special assessment
bonds) cannot exceed 10% of the assessed taxable value of real property located within Tequesta.
As of September 30, 2002, taxable real property within Tequesta was assessed at $523,061,602.
As of September 30, 2002, Tequesta's net bonded debt was $648,087, the ratio of net bonded debt
to taxable value was 0.12% and the net bonded debt per capita was $121.66.
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Cash Management
Tequesta maintains two pooled cash accounts known as the general corporation investment account
and the water enterprise investment account. The Finance Director monitors cash requirements and
the Village Manager, upon recommendation from the Finance Director, approves temporary idle
cash for investment. The investment policy of Tequesta is to maximize its investments in high
quality, risk -free securities authorized by State statutes, while maintaining a competitive yield on its
portfolio.
Tequesta's investments for the current year consisted of deposits with the State Board of
Administration — Local Government Surplus Funds Trust Fund Investment Pool, obligations of the
U.S. Government, and amounts held by an outside custodian on behalf of the Pension Trust Funds.
Investments with the State Board of Administration consist of obligations of the U.S. Treasury and
its agencies, money market securities of highest quality such as commercial paper, banker's
acceptance, corporate notes and repurchase agreements. Because of the short maturities and high
quality, securities in this fund are considered practically risk free.
On September 30, 2002, investments held by Tequesta totaled $12,340,668, which is detailed in
Note 3, (Notes to Cash & Investment Footnotes). The average yield on short-term surplus operating
funds investments maturing during the year was 2.06 %.
Risk Management
During 2002, Tequesta continued using third -party insurance coverage for its Risk Management
Program. A detailed list of insurance in effect is contained in the Schedule of Insurance on Page 72
of this Report.
OTHER INFORMATION
Independent Audit
Florida State statutes require an annual audit by independent certified public accountants. The
accounting firm of Rachlin, Cohen & Holtz LLP, CPA's was selected to conduct Tequesta's audit.
The auditor's report on the general purpose financial statements is included in the financial section
of this Report.
Awards
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to Tequesta for its comprehensive annual financial report for the
fiscal year ended September 30, 2001. This was the nineteenth 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.
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A Certificate of Achievement is valid for a period of one year. We believe that our current
comprehensive annual financial report 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.
Aeknowkdgements
The completion of the Comprehensive Annual Financial Report was made possible by the dedicated
service of the entire staff of the Finance Department. Each member of the department has our
sincere appreciation for the contributions made in the preparation of this report.
In closing, without the leadership and support of the Village Council of the Village of Tequesta,
preparation of this report would not have been possible.
Sincerely,
Michael Co Ann Forsythe, CPA-J
Village Manager Finance Director
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Village of Tequesta,
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2001
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.
AM
CWOPATM President
Executive Director
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VILLAGE OF TEQUESTA, FLORIDA
ORGANIZATION CHART
SEPTEMBER 30, 2002
Citizens
Village Council
Village Manager
Village Public Works Utilities Finance Community police Fire - Rescue
Village Clerk Attorney And Recreation Department Department Development Department Department
Department Department
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VILLAGE OF TEQUESTA, FLORIDA
COUNCIL - MANAGER FORM OF GOVERNMENT
SEPTEMBER 30, 2002
VILLAGE COUNCIL 2001 -2002
Geraldine A. Genco Mayor
Joseph N. Capretta Vice -Mayor
Basil E. Dalack Councilmember
Russell von Frank Councilmember
Edward D. Resnik Councilmember
VILLAGE OFFICIALS
Michael Couzzo, Jr. Village Manager
John C. Randolph Village Attorney
(Jones, Foster, Johnston & Stubbs, P.A.)
Mary A. Miles Village Clerk
JoAnn Forsythe, CPA Finance Director
James M. Weinand Fire Chief
Stephen J. Allison Police Chief
Jeffrey Newell Director of Community Development
Gary Preston Director of Public Works & Recreation
Michael Couzzo, Jr. Utilities Director
Gregg Corbitt Director of Parks and Recreation
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Rachlin Cohen & Holtz LLP
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FINANCIAL SECTION
REPORT OF INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANTS
RCH Rachlin Cohen & Holtz l-LP
Certified Public .accountant & C011Sltlta11t8
REPO OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Honorable Mayor, Village Commission and Village Manager
Village of Tequesta, Florida
We have audited the accompanying general purpose financial statements of the Village of Tequesta,
Florida (the Village) as of and for the year ended September 30, 2002, as listed in the table of contents.
These general purpose financial statements are the responsibility of the Village's management. Our
responsibility is to express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States and
the standards applicable to financial audits contained in Government Auditing 5tandar(is, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the general purpose financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the general purpose financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provide, a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in all material
respects, the financial position of the Village of Tequesta, Florida at September 30, 2002 and the results
of its operations and cash flows of its proprietary fund type for the year then ended, in conformity with
accounting principles generally accepted in the United States.
In accordance with Government Auditin- Standarcls, we have also issued a report dated January 17, 2003
on our consideration of the Village's internal control over financial reporting and our tests of its
compliance with certain provisions of laws, regulations and contracts- f hat 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.
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450 East Las Olas Boulevard, Saite 950, Ft. L.iuderdale, Florida 13301 • Tel y54- ;2 ;- 10411 • Fly Q;4 -?25 -1X)4
Offices in: Miami @ Ft. I,tudcrdalc • West I''alm Beach • Stuart
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Member of Summit Intemau, n i ite,. Inc s, ith others in primipal cotes thrOL1410ttt the W11rld
14emlerof the lmancan fnstihdeI'] C.ritfld Ptibb, s<<ouwxit3 and miwmlvr of dwf1rnda lnotut- 4Ccrntmi public Ae�, nni nit
RCH
Honorable Mayor, Village Commission and Village Manager
Viliage ofTequesta, Florida
Page Two
Our audit was performed for the purpose of forming an opinion on the general purpose financial
statements taken as a whole. The accompanying combining, individual fund and account group
statements and schedules and the required supplementary information as listed in the table of contents are
presented for purposes of additional analysis and are not a required part of the general purpose financial
statements of the Village. Such information has been subjected to the auditing procedures applied in the
audit of the general purpose financial statements and in our opinion, is fairly stated in all material respects
in relation to the general purpose financial statements taken as a whole.
The information shown in the statistical section listed in the table of contents has not been subjected to the
auditing procedures applied in the audit of the general purpose financial statements and accordingly, we
express no opinion thereon.
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Fort Lauderdale, Florida
January 17, 2003
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GENERAL PURPOSE FINANCIAL STATEMENTS
(Combined Statements - Overview)
VILLAGE OF TEQUESTA, FLORIDA
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 2002
Proprietary Fiduciary Account Groups
Governmental Fund Types Fund Fund General General Totals
Special Capital Type Type Fixed Long -Term (Memorandum
General Revenue Projects Enterprise Trusts Assets Debt Only)
ASSETS
Cash and cash equivalents $ 65,303 $ 44,320 $ 15,477 $ 271,392 $ 3,324 $ - $ - $ 399,816
Investments 3,075,943 145,574 3,345,306 2,901,949 1,886,198 - - 11,354,970
Accounts receivable (net of
allowance for uncollectibles) 216,526 31,850 66,622 351,997 - - - 666,995
Due from other funds - - - 260,552 3,987 - - 264,539
Inventories 17,687 - - 13,373 - - - 31,060
Restricted assets:
Cash and cash equivalents - - - 10,000 - - - 10,000
Investments - - - 575,882 - - - 575,882
Other assets 8,201 - - 196,905 - - - 205,106
Fixed assets - - - 18,131,067 - 9,297,174 - 27,428,241
Amount to be provided for retirement
of general long -term debt - - - - - - 6,387,988 6,387,988
Total assets and other debits $3,383,660 $ 221,744 $ 3,427,405 $22,713,117 $1,893,509 $9,297,174 $6,387,988 $ 47,324,597
(Continued)
See notes to general purpose financial statements.
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VILLAGE OF TEQUESTA, FLORIDA
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
(Continued)
SEPTEMBER 30, 2002
Proprietary Fiduciary Account Groups
Governmental Fund Types Fund Fund General General Totals
Special Capital Type Type Fixed Long -Term (Memorandum
General Revenue Projects Enterprise Trusts Assets Debt Only)
LIABILITIES AND FUND EQUITY
Liabilities:
Accounts payable $ 81,898 $ - $ 578,309 $ 153,889 $ 550 $ - $ - $ 814,646
Accrued liabilities 67,128 - - 49,686 - - - 116,814
Payable from restricted assets:
Deposits - - - 294,293 - - - 294,293
Due to other funds 3,646 - 260,552 341 - - - 264,539
Due to other governments 8,769 - - 822 - - - 9,591
Deferred revenue 122,433 45,764 - 8,309 - - - 176,506
Current portion of notes payable - - - 22,896 - - - 22,896
Current portion of water revenue bonds payable - - 150,000 - - - 150,000
Compensated absences 10,000 - - 93,423 - - 330,132 433,555
Claims and judgments payable - - - - - - 105,000 105,000
Obligations under capital leases - - - - - - 162,856 162,856
Notes payable - - - 13,827 - - 5,000,000 5,013,827
Improvement revenue bonds payable - - - - - - 790,000 790,000
Water revenue bonds payable - - - 7,243,346 - - - 7,243,346
Total liabilities 293,874 45,764 838,861 8,030,832 550 - 6,387,988 15,597,869
(Continued)
See notes to general purpose financial statements.
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VILLAGE OF TEQUESTA, FLORIDA
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
(Continued)
SEPTEMBER 30, 2002
Proprietary Fiduciary Account Groups
Governmental Fund Types Fund Fund General General Totals
Special Capital Type Type Fixed Long -Term (Memorandum
General Revenue Proiects Enterprise Trusts Assets Debt Onl
LIABILITIES AND FUND EQUITY
(Continued)
Fund equity:
Investments in general fixed assets $ - $ - $ - $ - $ - $ 9,297,174 $ - $ 9,297,174
Contributed capital - - - 5,390,419 - - - 5,390,419
Retained earnings - - - 9,291,866 - - - 9,291,866
Fund balances:
Reserved for:
Inventories 17,687 - - - - - - 17,687
Law enforcement and fire rescue - - - - 12,410 - - 12,410
Employees' pension benefits - - - - 1,880,549 - - 1,880,549
Recreation and parks 104,464 - - - - - - 104,464
Encumbrances 24,406 - 1,030,617 - - - - 1,055,023
Unreserved:
Designated for:
Road projects 29,120 - 155,370 - - - - 184,490
Central business district redevelopment 216,401 - - - - - - 216,401
Undesignated 2,697,708 175,980 1,402,557 - - - - 4,276,245
Total fund equity 3,089,786 175,980 2,588,544 14,682,285 1,892,959 9,297,174 - 31,726,728
Total liabilities, equity and other credits $3,383,660 $ 221,744 $ 3,427,405 $22,713,117 $1,893,509 $9,297,174 $6,387,988 $ 47,324,597
See notes to general purpose financial statements.
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VILLAGE OF TEQUESTA, FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Fiduciary
Fund
Governmental Fund Types Tyne
Expendable Totals
Special Capital Trust (Memorandum
General Revenue Proiects Fund Only)
Revenues:
Taxes $4,162,827 $339,619 $ - $ - $ 4,502,446
Intergovernmental 638,106 - - - 638,106
Charges for services 382,650 - - - 382,650
Inteagovernmental 327,270 - - - 327,270
Grants - - 142,207 - 142,207
Licenses and permits 9,793 98,636 - - 108,429
Interest 75,891 3,154 5,648 192 84,885
Fines and forfeitures 68,758 - - 5,000 73,758
Miscellaneous 46,423 - - - 46,423
Impact fees 44,320 - - - 44,320
Total revenues 5,756,038 441,409 147,855 5,192 6,350,494
Expenditures:
Current:
Public safety 3,229,968 - - - 3,229,968
General government 1,139,653 - - - 1,139,653
Transportation 403,363 - - - 403,363
Culture /recreation 325,326 - - - 325,326
Capital outlay 188,336 - 3,859,790 3,161 4,051,287
Debt service:
Principal retirement 1,907,263 90,000 - - 1,997,263
Interest 79,537 54,461 - - 133,998
Total expenditures 7,273,446 144,461 3,859,790 3,161 11,280,858
Excess (deficiency) of revenues
over expenditures 1,517,408 296,948 3,711,935 2,031 (4,930,364)
Other financing sources (uses):
Proceeds from notes payable 5,000,000 - 252,000 - 5,252,000
Operating transfers in 463,180 60,300 4,834,667 - 5,358,147
Operating transfers out 3,715,267 323,180 - - (4,038,447)
Total other financing sources (uses) 1,747,913 262,880 5,086,667 - 6,571,700
Excess of revenues over
expenditures and other
financing sources (uses) 230,505 34,068 1,374,732 2,031 1,641,336
Fund balances, beginning 2,859,281 141,912 1,213,812 10,379 4,225,384
Fund balances, ending $3,089,786 $175,980 $2,588,544 $ 12,410 $ 5,866,720
See notes to general purpose financial statements.
-6-
VILLAGE OF TEQUESTA, FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
GOVERNMENTAL FUND TYPES
FISCAL YEAR ENDED SEPTEMBER 30, 2002
General Fund Special Revenue Fund
Variance Variance
Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
Revenues:
Taxes $4,023,132 $4,162,827 $ 139,695 $325,000 $339,619 $ 14,619
Intergovernmental 641,240 638,106 (3,134) - _ -
Charges for services 322,300 382,650 60,350
Intragovernmental 335,070 327,270 (7,800)
Grants
Licenses and permits 11,200 9,793 (1,407) 78,000 98,636 20,636
Interest. 113,000 75,891 (37,109) 4,000 3,154 (846)
Fines and forfeitures 48,500 68,758 20,258 - - -
Miscellaneous 12,100 46,423 34,323
Impact fees 9,000 44,320 35,320 - _ _
Total revenues 5,515,542 5,756,038 240,496 407,000 441,409 34,409
Expenditures:
Current:
General government 1,248,238 1,139,653 108,585 - - _
Public safety 3,283,004 3,229,968 53,036 - _ _
Transportation 476,720 403,363 73,357 - - _
Culture /recreation 334,171 325,326 8,845 - - -
Capital outlay 201,105 188,336 12,769 - - -
Debt service:
Principal retirement 163,717 1,907,263 (1,743,546) 90,000 90,000 -
Interest 208,399 79,537 128,862 54,120 54,461 (341)
Total expenditures 5,915,354 7,273,446 (1,358,092) 144,120 144,461 (341)
Excess (deficiency) of revenues
over expenditures 399,812 1,517,408 (1,117,596) 262,880 296,948 34,068
Other financing sources (uses):
Appropriated fund balance 463,658 - (463,658) - - -
Proceeds from notes payable - 5,000,000 5,000,000 - - -
Operating transfers in 463,180 463,180 - 60,300 60,300 -
Operating transfers out 527,026 3,715,267 (3,188,241 323,180 323,180 -
Total other financing sources (uses) 399,812 1,747,913 1,348,101 262,880 262,880 -
Excess of revenues over expenditures
and other financing sources- (uses) $ - 230,505 $ 230,505 $ - 34,068 $ 34,068
Fund balances, beginning 2,859,281 141,912
Fund balances, ending $3,089,786 $175,980
(Continued)
-7-
VILLAGE OF TEQUESTA, FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
GOVERNMENTAL FUND TYPES
(Continued)
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Capital Prr iect Funds Totals (Memorandum Only)
Variance Variance
Favorable Favorable
Budeet Actual (Unfavorable) Budeet Actua (Unfavorable)
Revenues:
Taxes $ - $ - $ - $ 4,348,132 $4,502,446 $ 154,314
Intergovernmental - - - 641,240 638,106 (3,134)
Charges for services - - - 322,300 382,650 60,350
lntragovemmental - - - 335,070 327,270 (7,800)
Grants 147,488 142,207 (5,281) 147,488 142,207 (5,281)
Licenses and permits - - - 89,200 108,429 19,229
Interest 14,600 5,648 (8,952) 131,600 84,693 (46,907)
Fines and forfeitures - - 48,500 68,758 20,258
Miscellaneous _ - 12,100 46,423 34,323
Impact fees - - - 9,000 44,320 35,320
Total revenues 162,088 147,855 (14,233 6,084,630 6,345,302 260,672
Expenditures:
Current:
General government - - - 1,248,238 1,139,653 108,585
Public safety - - - 3,283,004 3,229,968 53,036
Transportation - - - 476,720 403,363 73,357
CUlturelrecreation - - - 334,171 325,326 8,845
Capital outlay 5,089,564 3,859,790 1,229,774 5,290,669 4,048,126 1,242,543
Debt service:
Principal retirement - - 253,717 1,997,263 (1,743,546)
Interest - - - 262,519 133,998 128,521
Total expenditures 5,089,564 3,859,790 1,229,774 11,149,038 11,277,697 (128,659
Excess (deficiency) of revenues
over expenditures (4,927,476 (3,711,935 1,215,541 (5,064,408 (4,932,395 132,013
Other financing sources (uses):
Appropriated fund balance - - - 463,658 - (463,658)
Proceeds from notes payable 3,243,000 252,000 (2,991,000) 3,243,000 5,252,000 2,009,000
Operating transfers in 1,684,476 4,834,667 3,150,191 2,207,956 5,358,147 3,150,191
Operating transfers out - - ( 850,206 ) (4,038,447 (3,188,241
Total other financing
sources (uses) 4,927,476 5,086,667 159,191 5,064,408 6,571,700 1,507,292
Excess of revenues over expenditures
and other financing sources (uses) $ - 1,374,732 $ 1,374,732 $ - 1,639,305 $ 1,639,305
Fund balances, beginning 1,213,812 4,215,005
Fund balances, ending $ 2,588,544 $ 5,854,310
See notes to general purpose financial statements.
-8-
VILLAGE OF T'EQUESTA, FLORIDA
ENTERPRISE FUNDS
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Operating revenues:
Charges for services $ 4,214,202
Licenses and permits 616,918
Total operating revenues 4,831,120
Operating expenses:
Personal services 1,000,598
Purchased services 890,686
Depreciation 790,914
Repairs and maintenance 557,682
Management services 327,270
Contractual services 285,191
Professional services 207,778
Utilities 204,632
Operating supplies 76,535
Other 59,704
Insurance 49
Office supplies 31,134
Travel and per diem 3,056
Total operating expenses 4,484,390
Operating income 346,730
Non - operating revenues (expenses):
Miscellaneous revenue 186,636
Interest income 146,246
Reimbursement revenue 127,533
Interest expense and fiscal charges (392,591)
Net non - operating revenues 67,824
Income before operating transfers 414,554
Operating transfers:
Operating transfers in 60,000
Operating transfers out (1,379,700)
Total operating transfers (1,319,700)
Net loss (905,146)
Retained earnings, beginning 10,197,012
Retained earnings, ending $ 9,291,866
See notes to general purpose financial statements.
-9-
VILLAGE OF TEQUESTA, FLORIDA
ENTERPRISE FUNDS
COMBINED STATEMENT OF CASH FLOWS
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Cash flows from operating activities:
Operating income $ 346,730
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation 790,914
Loss on disposal of fixed assets 7,289
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable 246,298
Inventories 24,313
Due from other funds (130,070)
Other assets 6,259
Increase (decrease) in:
Accounts payable and accrued liabilities (489,163)
Due to other governments (15,622)
Deferred revenue 26,906
Compensated absences 6,929
Due to other funds 1,896,785
Net cash used in operating activities 1,076,002
Cash flows from non - capital financing activities:
Operating transfers from other funds 60,000
Operating transfers to other funds (1,379,700)
Other miscellaneous revenues 314,169
Net cash used in non - capital financing activities 1,005,531
Cash flows from capital and related financing activities:
Acquisition and construction of fixed assets (1,046,335)
Principal payments (163,036)
Interest paid 392,591
Net cash used for capital and related financing activities 1,601,962
Cash flows from investing activities:
Purchases and sales of investments, net 1,414,607
Interest received on investments 146,246
. Net cash provided by investing activities 1,560,853
Net decrease in cash and cash equivalents (2,122,642)
Cash and cash equivalents, beginning (including restricted cash of $961,227) 2,404,034
Cash and cash equivalents, ending (including restricted cash of $10,000) $ 281,392
Supplemental information:
Cash paid for interest $ 392,591
See notes to general purpose financial statements.
-10-
VILLAGE OF TEQUESTA, FLORIDA
COMBINED STATEMENT OF CHANGES IN PLAN NET ASSETS
PENSION TRUST FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2002
ADDITIONS
Contributions:
State $ 163,771
Employer 114,385
Employees 101,095
Total contributions 379,251
Investment income (loss):
Net depreciation in fair value of investments (113,982)
Interest and dividends 48,156
Less investment expenses 12,883
Net investment loss 78,709
Total additions 300,542
DEDUCTIONS
Pension benefits/refunds 16,722
Administrative expenses 8,876
Total deductions 25,598
Net increase 274,944
Net assets held in trust for pension benefits:
Beginning 1,605,605
Ending $1,880,549
See notes to general purpose financial statements.
-11-
NOTES TO GENERAL PURPOSE
FINANCIAL STATEMENTS
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
SEPTEMBER 30, 2002
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 general purpose 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 GASB Statement No. 14, The
Financial Reporting Entity, 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 Firefighters'
Pension Trust Fund, The Police Officers' Pension Trust Fund, and The General Employees'
Pension Trust Fund. This component unit does not issue a stand alone financial report.
-12-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
b. Measurement Focus, Basis of Accounting and Basis of Presentation
The accounts of the Village are organized and operated on the basis of funds and account
groups. A fund is an independent fiscal and accounting entity with a self - balancing set of
accounts. Fund accounting segregates funds according to their intended purpose and is used to
aid management in demonstrating compliance with finance- related legal and contractual
provisions. The minimum number of funds is maintained consistent with legal and managerial
requirements. Account groups are a reporting device to account for certain assets and
liabilities of the governmental funds not recorded directly in those funds.
The following are the funds and account groups used by the Village:
Governmental funds are used to account for the Village's general government activities,
including the collection and disbursement of earmarked monies (special revenue funds)
and the acquisition or construction of general fixed assets (capital projects funds).
The General Fund accounts for all financial resources of the general government,
except those required to be accounted for in another fund.
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 Capital Projects Funds are used to account for financial resources to be used for
the acquisition or construction of major capital facilities (other than those to be financed
by the Enterprise Funds). The Village has established the following two capital projects
funds:
Capital Improvement Fund
Capital Projects Fund
Proprietary Funds are accounted for on the flow of economic resources measurement
focus and use the accrual basis of accounting. Under this method, revenues are recorded
when earned and expenses are recorded at the time liabilities are incurred. The Village
applies all applicable FASB pronouncements issued on or before November 30, 1989
unless those pronouncements conflict with or are contradicted by GASB pronouncements.
Proprietary funds include the following fund type:
Enterprise Funds are used to account for operations (a) that are financed and operated in a
manner similar to private business enterprises - where the intent of the governing body is
that the costs (expenses, including depreciation) of providing goods or services to the
general public on a continuing basis be financed or recovered primarily through user
charges; or (b) where the governing body has decided that periodic determination of
revenues earned, expenses incurred, and/or net income is appropriate for capital
maintenance, public policy, management control, accountability or other purposes.
-13-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
b. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
The Village has established four Enterprise Funds as follows:
Water Fund
Storm Water Utility Fund
Refuse and Recycling Fund
Community Development Fund
Fiduciary Funds account for assets held by the Village in a trustee capacity or as an agent
on behalf of others. Trust funds account for assets held by the Village under the terms of a
formal trust agreement. The Pension Trust Funds are accounted for in essentially the same
manner as the proprietary funds, using the same measurement focus and basis of accounting.
The Village has three pension trust funds as follows:
Firefighters' Pension Trust Fund
Police Officers' Pension Trust Fund
General Employees' Pension Trust Fund
The Expendable Trust Fund is accounted for in essentially the same manner as the
governmental fund types, using the same measurement focus and basis of accounting. The
Village has one Expendable Trust Fund, the Special Law Enforcement Trust Fund, to
account for forfeitures received by the Police Department to be expended for certain law
enforcement purposes as prescribed by Florida Statute Chapter 932.704.
Account Groups. The general fixed assets account group is used to account for fixed
assets not accounted for in proprietary or trust funds. The general long -term debt account
group is used to account for general long -term debt and certain other liabilities that are not
specific liabilities of proprietary or trust funds.
The accounting and financial reporting treatment applied to a fund is determined by its
measurement focus. All governmental funds and expendable trust funds are accounted for
using a current financial resources measurement focus. With this measurement focus, only
current assets and current liabilities generally are in on the balance sheet. Operating
statements of these funds present increases (i.e., revenues and other financing sources) and
decreases (i.e., expenditures and other financing uses) in net current assets.
With this measurement focus, all assets and all liabilities associated with the operation of these
funds are included on the balance sheet. Fund equity (i.e., net total assets) is segregated into
contributed capital and retained earnings components.
-14-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
b. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
The modified accrual basis of accounting is used by all governmental fund types and
expendable trust fund. Under the modified accrual basis -of accounting, revenues are
recognized when susceptible to accrual (i.e., when they become both measurable and
available). "Measurable" means the amount of the transaction can be determined and
"available" means collectible within the current period or soon enough thereafter to be used to
pay liabilities of the current period. A 60 day availability period is used for revenue
recognition for all other governmental fund revenues. Expenditures are recorded when the
related fund liability is incurred.
Those revenues susceptible to accrual are franchise fees, taxes, special assessments, licenses,
interest revenue, and intergovernmental revenues. Sales taxes collected and held by the state
at year end on behalf of the Village are also recognized as revenues. Fines and permit
revenues are not susceptible to accrual because generally they are not measurable until
received in cash.
c. Budgets and Budgetary Accounting
Formal budgetary integration is employed as a management control device during the year for
the General Fund, Special Revenue Fund, Capital Projects Funds and the Enterprise Funds.
All budgets are legally enacted through passage of an ordinance.
Budgets are adopted on a basis consistent 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', the Village Manager submits to the Village Council a proposed
operating budget for the fiscal year commencing the following October 1'. The operating
budget includes proposed expenditures and the means of financing them.
2) Public hearings are conducted to obtain taxpayer-comments.
3) Prior to October 0, 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 $145,694 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.
.Is-
VILLAGE OF T'EQUESTA, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
d. Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, demand deposits and short -term investments
with maturities of three months or less when purchased.
e. Investments
Investments are reported at fair value.
f. Interfund Receivables and Payables
Transactions between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are reported as "due to /from other funds."
g. 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 are recorded on
the balance sheet as a reservation of fund balance.
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.
h. Fixed Assets
Fixed assets used in governmental funds are recorded in the General Fixed Assets Account
Group at cost or estimated historical cost if purchased or constructed. Donated fixed assets
are valued at estimated fair value on the date of donation. Public domain ( "infrastructure')
assets, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and
lighting systems are not capitalized. Assets recorded in the General Fixed Assets Account
Group are not depreciated.
Depreciation of all exhaustible fixed assets used by proprietary funds is charged as an expense
against operations. Accumulated depreciation is reported on proprietary fund balance sheets.
Depreciation has been provided over the estimated useful lives using the straight -line method.
The estimated useful lives are as follows:
Buildings 20-40 years
Improvements 20 -30 years
Equipment 3 -10 years
The cost of normal maintenance and repairs that do not add to the value of the asset or
materially extend the assets' lives are not included in the General Fixed Assets Account Group
or capitalized in the proprietary funds.
-16-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
i. Compensated Absences
Compensated absences are amounts employees have earned for vacation and sick leave.
Compensated absences are accrued as employees earn the rights to the benefits based upon
length of service.
In the governmental funds, compensated absences that are expected to be liquidated with
expendable available financial resources are reported as an expenditure and fund liability.
Amounts not expected to be liquidated with expendable financial resources are reported in the
General Long -Term Debt Account Group.
In the proprietary funds and similar trust funds, compensated absences are recorded as an
expense and liability.
j. Deferred Revenue
Revenues collected in advance are deferred and recognized as revenue in the period earned.
k. Long -Term Obligations
The Village reports long -term debt of governmental funds at face value in the General Long -
Term Debt Account Group. Certain other governmental fund obligations not expected to be
financed with current available financial resources are also reported in the General Long -Term
Debt Account Group. Long -term debt and other obligations financed by proprietary funds are
reported as liabilities in the appropriate funds. The issuance costs and debt discount on long-
term debt are amortized over the life of the bonds using the straight -line method.
1. Encumbrances
Encumbrance accounting is used for purposes of budgetary control and recorded at the time a
purchase order or other commitment is entered into. Encumbrances outstanding at year end
are reported as a reservation of fund balance until expended or accrued as a liability of the
fund.
m. Reserves and Designations
The Village has established reserves and designations of fund balances. The reserved fund
balances for governmental funds represent those portions of the fund balance not considered
available for future appropriation or legally segregated for a specific use. Designated fund
balances represent tentative plans for future use of financial resources.
-17-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
n. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying notes. Although
these estimates are based on management's knowledge of current events and actions it may
undertake in the future, they may ultimately differ from actual results.
o. Memorandum Only —Total Columns
Total columns on the general purpose financial statements are captioned as "memorandum
only" because they do not represent consolidated financial information and are presented only
to facilitate financial analysis. The columns do not present information that reflects financial
position or results of operations in accordance with accounting principles generally accepted in
the United States. Interfund eliminations have not been made in the aggregation of this data.
NOTE 2. PROPERTY TAXES
Ad valorem taxes are assessed and liened as of January I" and billed the following October.
They are due and payable 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 1 following the year in which they are assessed.
Discounts are allowed for early payment at the rate of 4% in the month of November, 3% in the
month of December, 2% in the month of January and 1% in the month of February. The taxes
paid in March are without discount. At September 30' unpaid delinquent taxes, if any, are
reflected as a receivable on the balance sheet.
Assessed values are established by the Palm Beach County Property Appraiser at approximately
fair market value. The assessed value of property at January 1, 2001, upon which the 2001 -2002
levy was based, was approximately $476 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, 2002 was 6.7305 mills per $1,000 of assessed valuation.
-18-
VILLAGE OF T'EQUESTA, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 3. CASH AND INVESTMENTS
Cash
Cash includes cash on hand and checking accounts. In addition to insurance provided by the
Federal Deposit Insurance Corporation, deposits are held in banking institutions approved by
the State Treasurer of the State of Florida to hold public funds. Under Florida Statutes
Chapter 280, Florida Security for Public Deposits Act, the State Treasurer requires all Florida
qualified public depositories to deposit with the Treasurer or another banking institution
eligible collateral. Accordingly, all amounts reported as deposits are insured or collateralized
with securities held by the entity or its agent in the entity's name.
Investments
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.
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 (including restricted investments) consist of funds held with the state investment
pool, obligations of the United States government and funds held by an outside custodian on
behalf of the Pension Trust Funds.
The Village's investments are categorized below to give an indication of the level of custodial
credit risk assumed by the Village at year end.
Category I Insured or registered, or securities held by the Village or its agent in the
Village's name.
Category 2 Uninsured and unregistered, with securities held by the counterparty's trust
department or agent in the Village's name.
Category 3 Uninsured and unregistered, with securities held by the counterparty, or by
its trust department or agent but not in the Village's name.
-19-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 3. CASH AND INVESTMENTS (Continued)
Investments (Continued)
At year end, the Village's investment balances were as follows:
Category 3 Fair Value
Corporate bonds $ 242,708 $ 242,708
Government backed securities 364,501 364,501
Government bonds 51,656 51,656
Corporate stocks 726,479 726,479
$1,385,344 1,385,344
Investments not subject to categorization:
Mutual funds 491,766
State investment pool 10,053,742
Total $11,930,852
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, 2002, which
were indexed based on the prime rate and/or one and three month LIBOR rates. The value of
the pool shares is equal to the fair value of the Village's reported balance in the State
investment pool.
Cash, cash equivalents and investments are presented in the combined balance sheet as
follows:
Cash and cash equivalents $ 399,816
Investments 11,354,970
11,754,786
Restricted assets:
Cash and cash equivalents 10,000
Investments 575,882
Total $12,340,668
Deposits $ 409,816
Investments 11,930,852
Total $12,340,668
-20-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 4. INTERFUND RECEIVABLES AND PAYABLES
Individual fund interfund receivables and payables at September 30, 2002 are as follows:
Fund Receivables Pavables
General $ - $ 3,646
Capital Projects - 260,552
Water Enterprise 260,552 257
Stormwater Utility - -
Community Development - 84
Firefighters Pension 1,810 -
Police Officers' Pension 291 -
General Employees Pension 1,886 -
Total $ 264,539 $ 264,539
Interfund Administrative Fee
During the year ended September 30, 2002, the Enterprise Funds remitted $322,600 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 5. RECEIVABLES
Enterprise funds accounts receivable as of September 30, 2002 consists of the following:
Refuse and
Water Stormwater Recycling
Fund Utility Fund Fund Total
Billed services $ 354,105 $ 2,019 $ 373 $ 356,497
Less allowance for uncollectibles 4,500 - - (4
Net accounts receivable $ 349,605 $ 2,019 $ 373 $ 351,997
NOTE 6. RESTRICTED ASSETS
Restricted assets as of September 30, 2002 consist of the following accounts:
Cash Investments Total
Customer deposits $10,000 $ 284,293 $ 294,293
Capital improvements - 118,589 118,589
Renewal and replacement - 173,000 173,000
Total restricted assets $10,000 $ 575,882 $ 585,882
-21-
VILLAGE OF T'EQUESTA, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 7. FIXED ASSETS
A summary of changes in general fixed assets for the year ended September 30, 2002 is as
follows:
Balance Balance
October 1, September 30,
2001 Additions Deletions 2002
Land $1,894,067 $ 43,400 $ - $ 1,937,467
Buildings 1,113,919 - - 1,113,919
Improvements other than buildings 258,777 693,294 (880) 951,191
Equipment 2,112,178 151,229 (67,415) 2,195,992
Construction in progress - 3,098,605 - 3,098,605
$ 5,378,941 $ 3,986,528 $ 68,295 $ 9,297,174
A summary of changes in the Enterprise Fund's fixed assets follows:
Balance Balance
October 1, September 30,
2001 Additions Deletions 2002
Land $ 83,336 $ - $ - $ 83,336
Buildings 985,188 - (7,399) 977,789
Improvements other than buildings 12,355,269 10,208,590 (13,399) 22,550,460
Equipment 288,939 183,666 (10,794) 461,811
Construction in progress 9,465,509 66,154 (9,412,074) 119,589
23,178,241 10,458,410 (9,443,666) 24,192,985
Accumulated depreciation (5,295,307) 790,914 24,303 (6,061,918)
$17,882,934 $9,667,496 $ 9,419,363 $ 18,131,067
NOTE 8. CAPITAL LEASE COMMITMENTS
The Village has entered into three capital leases for the financing of a fire truck, ambulances and
vehicles. Payments on all leases are due monthly through October 2003.
These lease agreements qualify as capital leases for accounting purposes, and, therefore, have
been recorded at the present value of the future minimum lease payments as of the inception date
in the general fixed assets account group for governmental fund leases with the related liability in
the general long -term debt account group.
-22-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 8. CAPITAL LEASE COMMITMENTS (Continued)
The following is a schedule of the future minimum lease payments under these capital lease
arrangements at September 30, 2002:
General
Long -Term
Debt
Fiscal year ending September 30:
2003 $ 88,752
2004 88,752
Total minimum lease payments 177,504
Less amount representing interest 14,648
Present value of future minimum lease payments $ 162,856
NOTE 9. LONG -TERM DEBT
a. General Long -Term Debt
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- 93/94, the Village is obligated to use Franchise
Fees and Occupational Licenses Fees to pay the principal and interest on the bonds. At
September 30, 2002, $790,000 of this issue was outstanding. Remaining revenues after all
principal and interest payments may be used for any lawful purpose.
Annual requirements to amortize this debt are as follows:
Principal Interest Total
Year ending September 30:
2003 $ 95,000 $ 48,585 $ 143,585
2004 100,000 42,742 142,742
2005 105,000 36,592 141,592
2006 110,000 30,135 140,135
2007 120,000 23,370 143,370
2008 and thereafter 260,000 24,292 284,292
Total_ $ 790,000 $ 205,716 $ 995,716
Line of Credit
On June 12, 1997, the Village Council authorized management to enter into a line of credit
for $1,000,000 with a bank. The line of credit bears an interest rate of 60% of the bank's
prime lending rate. Interest is payable monthly with principal due at maturity, which is 12
-23-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 9. LONG -TERM DEBT (Continued)
a. General Long -Term Debt (Continued)
Line of Credit (Continued)
months from the date of closing. The proceeds from the loan are to be used to fund capital
projects within the Village. The Village subsequently increased the line of credit to
$6,000,000. The line of credit was renewed January 11, 2002 for another year. On
September 13, 2002 the Village repaid the outstanding balance of $1,802,547 with
proceeds from a 20 -year note payable.
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.
Annual requirements to amortize this debt are as follows:
Principal Interest Total
Year ending September 30:
2003 $ 161,648 $ 210,853 $ 372,501
2004 168,704 203,797 372,501
2005 176,068 196,433 372,501
2006 183,753 188,748 372,501
2007 191,774 180,727 372,501
2008 and thereafter 4,118,053 1,469,469 5,587,522
. Total $ 5,000,000 $ 2,450,027 $ 7,450,027
Claims Payable
The Village's workers' compensation insurance company notified the Village that it had
insufficient assets to meet its ultimate claims liabilities. Therefore, each member of the
trust must fund its own individual costs, which would include claims administration and
payments of indemnity and medical expenses of injured employees for any claims prior to
July 1, 1998. Each member will be billed for actual costs. As of September 30, 2002, the
Village had incurred and paid expenses of $17,220. The Village has two open claims for
which there could be substantial settlements. As of September 30, 2002, the settlement
amounts are estimated to be $105,000, which the Village has recorded a liability in the
General Long -Term Debt Account Group.
-24-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 9. LONG -TERM DEBT (Continued)
a. General Long -Term Debt (Continued)
Changes in general long -term debt of the Village for the year ended September 30, 2002
are summarized as follows:
October 1, September 30,
2001 Additions Deletions 2002
Improvement Revenue Bonds $ 880,000 $ - $ 90,000 $ 790,000
Line of Credit 1,564,907 259,500 1,824,407 -
Capital Lease Obligations 246,696 - 83,440 163,256
Claims and Judgments Payable 165,000 - 60,000 105,000
Compensated Absences 329,111 1,021 - 330,132
Note Payable - 5,000,000 - 5,000,000 .
Total $3,185,714 $5,260,521 $2,057,847 $ 6,388,388
b. Enterprise Funds
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
2028. Pursuant to the Bond Resolution, 7- 97/98, the Village is obligated to establish and
maintain required reserves as noted in Note 10 — Required Reserves. At September 30,
2002, the outstanding balance was $7,495,000.
Annual debt service requirements are as follows:
Principal Interest Payments
Year ending September 30:
2003 $ 150,000 $ 369,915 $ 519,915
2004 160,000 363,325 523,325
2005 165,000 356,255 521,255
2006 170,000 348,885 518,885
2007 180,000 341,185 521,185
Thereafter 6,670,000 4,189,156 10,859,156
Total 7,495,000 5,968,721 13,463,721
Less unamortized discount 101,654 - (101,654)
$ 7,393,346 $ 5,968,721 $13,362,067
Note Payable
On April 9, 1999, the Village entered into a note payable agreement to finance the cost of a
new utility billing system. The Village financed $108,000 over a term of 48 months at an
interest rate of 4.75 %. As of September 30, 2002, the balance of the note was $36,723.
-25-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 9. LONGTERM DEBT (Continued)
b. Enterprise Funds (Continued)
Note Payable (Continued)
Annual debt service requirements are as follows:
Principal Interest Payments
Year ended September 30:
2003 $22,897 $1,117 $ 24,014
2004 13,826 182 14,008
Total $ 36,723 $1,299 $ 38,022
c. Defeasance 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 of 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, 2002, $2,540,000 of bonds outstanding is considered defeased.
NOTE 10. REQUIRED RESERVES
The Bond Resolution of the Water Revenue Bonds Series 1998 requires the establishment of the
following accounts:
Account Purpose
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 making 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.
-26-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 10. REQUIRED RESERVES (Continued)
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.
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
statement and required supplementary information for the FRS. The latest available report
was for the fiscal year ended June 30, 2001. 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
Participating employers are required to make contributions based upon statewide contribution
rates. The contribution rates by job class for the Village's employees at September 30, 2001
were as follows: regular employees — 7.3 %, special risk employees — 18.44% and senior
management — 9.28 %. These rates include 1.11% for the employer Health Insurance Subsidy
contribution, which is the same for all risk classes.
The Village's contributions to the FRS for the fiscal years ended September 30, 1999, 2000
and 2001 were $302,071, $229,701 and $193,585, respectively, which were equal to the
required contributions for each fiscal year.
-27-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO GENERAL PURPOSE 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 three separate Board 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 Firefighters' Pension Trust Fund (FPTF), The Police
Officers' Pension Trust (PPTF) and the General Employees' Pension Trust Fund (GPTF). The
three pension trust funds do not issue stand alone financial statements and have been included in
the financial statements of the Village as pension trust funds.
SUMMARY 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 -term investments are reported at cost which
approximates fair value. Securities traded on a national or international exchange are
valued at the last reported sales price at current exchange rates.
Concentration of Investments
The Plans did not have any single investment -of 5% or more of net assets in any one
organization.
PLAN DESCRIPTION AND CONTRIB UTION INFORMA TION
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.
-28-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLANDESCRIPTIONAND CONTRIBUTIONLYFORMATION (Continued)
Membership in each plan consisted of the following at October 1, 2000, the date of the latest
actuarial valuation:
FPTF PPTF GPTF
Retirees and beneficiaries currently receiving benefits and terminated - - -
employees entitled to benefits but not yet receiving them
Active employees:
Vested - - -
Non- vested 17 5 10
Total 17 5 10
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.
-29-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLANDESCRIPTIONAND CONTRIBUTIONINFORMATION (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 ten years of credited service
will receive the actuarial equivalent of the accrued early or normal retirement benefit.
If the firefighter or police officer dies or terminates employment with less than ten years of
credited service, he is entitled to a refund of the money 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 amount to fund the plan using the aggregate
actuarial cost method as approved by the plans' Board of Trustees.
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):
-30-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLANDESCRIPTIONAND CONTRIBUTIONINFORMATION (Continued)
b. General Employees' Pension Trust Fund (Continued)
Plan Description (Continued)
(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 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 ten 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.
Annual Pension Cost
The Village's 2002 annual pension cost and actual contributions for each plan are shown
below. The required contributions were determined as part of the October 1, 2000 actuarial
valuation for each plan.
-31-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
Annual Pension Cost (Continued)
Three -Year Trend Information
Annual 'Percentage Net
Pension of APC Pension
Fiscal Year Endins Cost (APC) Contributed Obligation
Firefighters' Retirement System:
September 30, 2000 $ 84,745 95.2% $ (114,811)
September 30, 2001 62,395 0.0% (112,252)
September 30, 2002 71,190 144.1% (143,664)
Police Officers' Retirement System:
September 30, 2000 7,177 358.2% (81,980)
September 30, 2001 19,571 93.0% (80,608)
September 30, 2002 31,883 78.8% (73,859)
General Employees' Retirement System:
September 30, 2000 17,456 149.2% (8,597)
September 30, 2001 13,024 284.0% (32,556)
September 30, 2002 42,127 114.2% (38,553)
Components of Annual Pension Cost and Net Pension Obligation
Police General
Firefighters' Officers' Employees
Annual required contribution (ARC) $ 68,688 $ 30,535 $ 41,607
Interest on net pension obligation (NPO) (8,980) (6,449) (2,604)
Adjustment to ARC 11,482 7,797 3,124
Annual pension cost 71,190 31,883 42,127
Actual contributions 102,602 25,134 48,124
Increase (decrease) in NPO (31,412) 6,749 (5,997)
NPO at beginning of year 112,252 80,608 3( 2,556)
NPO at ending of year $ 143,664 $ (73,859 $ 38,553
-32-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 13. COMMTMENTS AND CONTINGENCIES
Long -Term Agreement to Purchase Water
On July 15, 1976, the Village entered into an agreement with Tri- Southern Utilities Company,
Inc. (the agreement was subsequently assumed by the Town of Jupiter) to purchase water for
the Village's water system for a period of 30 years. Rates for water service are based on
wholesale rates. The Village is billed monthly based upon a 1,500,000 gallons per day
contracted minimum.
Lease- Agreements
On December 20, 1994, the Village entered into an Interlocal agreement with Palm Bach
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.
On December 6, 1996, the Village entered into a three year lease agreement to rent commercial
office space for the administrative, finance and water services staff. The base annual rent is
$47,132 adjusted annually for the Consumer Price Index. At the end of the three year lease, the
Village has the option to renew for three additional one year terms. On July 1, 2002, the Village
renewed the lease for an additional year with no change in base rent.
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.
Contracted Services — Fire/Emergency Medical Service
Effective October 1, 1993, the Village entered into an Interlocal agreement with Jupiter Inlet
Colony for the Village to provide fire protection/emergency medical services for a fee. For
the year ended September 30, 2002, fire protection fees received from Jupiter Inlet Colony
were $165,552.
-33-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 13. COMI MN[ENTS AND CONTINGENCIES (Continued)
Construction Commitments
Significant construction commitments as of September 30, 2002 are as follows:
Estimated Estimated
Expended Cost to Completion
Description to Date Complete Date
Governmental Funds
Capital Projects Fund. Completed
Public Safety Facility $3,086,915 $1,221,610 December 2002
Enterurise Funds
Water Fund.
Remote Telemetry $ - $ 338,980 March 2003
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 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.
-34-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 15. SEGMENT INFORMATION FOR ENTERPRISE FUNDS
The Village maintains four separate enterprise funds which provide water, stormwater, refuse and
recycling services and community development. Segment information for the year ended
September 30, 2002 was as follows:
Storm Refuse and Community
Water Water Recycling Development Total
Operating revenues $ 3,597,159 $ 293,194 $250,536 $ 690,918 $ 4,831,807
Depreciation 737,650 48,079 - 5,185 790,914
Operating income (loss) 193,808 (77,895) 22,986 207,831 346,730
Non- operating revenues (expenses) (94,252) 140,370 2,790 18,916 67,824
Operating transfers in - - - 60,000 60,000
Operating transfers out (1,319,400) (60,300) - - (1,379,700)
Net income (loss) (1,219,844) 2,175 25,776 286,747 (905,146)
Property and equipment additions 639,077 358,237 - 19,429 1,016,743
Net working capital 1,779,838 229,131 106,295 1,027,362 3,142,626
Total assets 19,888,353 1,621,856 124,775 1,078,133 22,713,117
Total equity 11,911,886 1,615,815 106,295 1,048,289 14,682,285
NOTE 16. 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 was not obligated to contribute any funds in the fiscal years 1999, 2000, 2001 and 2002.
-35-
REQUIRED SUPPLEMENTAL INFORMATION
VILLAGE OF TEQUESTA, FLORIDA
REQUIRED SUPPLEMENTAL INFORMATION
SCHEDULE OF CONTRIBUTIONS FROM THE EMPLOYER AND OTHER CONTRIBUTING ENTITIES
SEPMUBER 30, 2002
Annual
Fiscal Required Village State Percentage
Year Contribution Contribution Contribution Contributed
Firefighters' Pension Fund
1997 $ 103,571 $ 80,933 $ 32,975 110.0%
1998 115,024 101,403 37,535 120.8%
1999 82,881 107,914 35,118 172.6%
2000 82,881 49 31,247 97.3%
2001 59,836 24,694 4,783 49.3%
2002 59,836 66 81,917 247.6%
Police Officers' Pension Fun
1997 $ 1,282 $ - $ 20,140 1571.0%
1998 8,393 8,000 25,134 394.8%
1999 6,384 20,266 29,795 784.2%
2000 6,384 576 42,178 669.7%
2001 18,199 - - 0.0%
2002 18,199 - 81,854 449.8%
General Employees' Pension Fun
1997 $ 11,399 $ 11,400 N/A 100.0%
1998 13,440 13,440 N/A 100.0%
1999 17,456 17,456 N/A 100.0%
2000 17,456 26,053 N/A 149.2%
2001 12,887 30,687 N/A 238.1%
2002 12,887 48,124 N/A 373.4%
-36-
VILLAGE OF TEQvESTA, FLORIDA
REQUIRED SUPPLEMENTAL INFORMATION
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Police General
Firefighters Officers Employees
Pension Pension Pension
Fund Fund Fund
Valuation date 10/1/2000 10/1/2000 10/1/2000
Actuarial cost method Aggregate Aggregate Aggregate
Amortized method (1) (1) (1)
Remaining amortization period (1) (1) (1)
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%
(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.
-37-
GENERAL FUND
VILLAGE OF TEQUESTA, FLORIDA
SCHEDULE OF REVENUES - BUDGET AND ACTUAL
GENERAL FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Variance
Favorable
Budget Actual (Unfavorable)
Taxes:
Ad .valorem taxes:
Current $3,121,702 $3,147,730 $ 26,028
Delinquent 3,000 6,167 3,167
Total ad valorem taxes 3,124,702 3,153,897 29,195
Public service taxes:
Electric 350,000 362,884 12,884
Local communication services 226,430 319,357 92,927
Water 120,000 136,133 16,133
Gas 36,000 15,983 (20,017)
Telephone - 216 216
Total public service taxes 732,430 834,573 102,143
Local option gas tax 166,000 174,357 8
Total taxes 4,023,132 4,162,827 139,695
Licenses and permits:
Other licenses and permits 11,200 9,793 (1,407)
Intergovernmental:
One -half cent sales tax 372,560 374,280 1,720
State revenue sharing 134,380 141,965 7,585
Grants 88,000 58,499 (29,501)
911 maintenance reimbursement 37,500 52,190 14,690
Other 4,800 8,014 3,214
Alcoholic beverage licenses 4,000 3,158 (842)
Total intergovernmental 641,240 638,106 (3,134)
Charges for services:
EMS transport service 130,050 165,890 35,840
Fire rescue service 165,500 165,552 52
Certification, copying, record search 3,000 17,905 14,905
Fire plan review services 6,300 17,749 11,449
Fire inspections 14,100 11,269 (2,831)
Extra duty - contracted services 2,500 3,632 1,132
Other fire rescue/EMS services 850 653 (197)
Total charges for services 322,300 382,650 60,350
(Continued)
-38-
VILLAGE OF TEQUESTA, FLORIDA
SCHEDULE OF REVENUES - BUDGET AND ACTUAL
GENERAL FUND
(Continued)
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Variance
Favorable
Budge Actual (Unfavorable)
Fines and forfeitures:
Court fines $ 45,000 $ 66,495 $ 21,495
Parking tickets 2,500 1,980 (520)
Code enforcement 1,000 283 (717)
Total fines and forfeitures 48,500 68,758 20,258
Interest:
Investments 110,000 73,685 (36,315)
Tax collector 3,000 2,206 (794)
Total interest 113,000 75,891 (37,109)
Miscellaneous:
Other 12,100 46,423 34,323
Impact fees:
Parks and recreation 3,000 31,557 28,557
Fire rescue 3,000 6,861 3,861
Police 3,000 5,902 2,902
Total impact fees 9,000 44,320 35,320
Intragovernmental services:
Administrative management - enterprise funds 327,270 327,270 -
Rent and utilities - enterprise funds 7,800 - (7,800)
Total intergovernmental services 335,070 327,270 (7,800)
Total revenues $5,515,542 $5,756,038 $ 240,496
-39-
VILLAGE OF TEQUESTA, FLORIDA
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
GENERAL FUND
(Continued)
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Variance
Favorable
Budge Actual (Unfavorable)
General government:
Legislative:
Travel and per diem $ 22,700 $17,133 $ 5,567
Other charges 12,850 12,788 62
Books, publications and dues 5,575 1,850 3,725
Total legislative 41,125 31,771 9,354
Executive:
Salaries 276,757 264,992 11,765
Life and health insurance 32,435 31,583 852
Professional fees 26,038 25,621 417
F.I.C.A. 19,182 18,029 1,153
Other charges 17,928 12,933 4,995
Retirement 15,064 15,862 (798)
Deferred compensation insurance 7,331 7,320 11
Travel and per diem 4,190 4,956 (766)
Contractual services 4,170 3,759 411
Books, publications, dues 3,510 2,718 792
Office supplies 3,442 2,056 1,386
Workers' compensation insurance 1,424 1,132 292
Office machines maintenance 750 710 40
Total personnel 412,221 391,671 20,550
(Continued)
-40-
VILLAGE OF TEQUESTA, FLORIDA
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
GENERAL FUND
(Continued)
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Variance
Favorable
Budget Actual (Unfavorable)
General government:
Finance:
Salaries $ 202,526 $ 184,241 $ 18,285
Accounting and auditing 18,000 17,568 432
Life and health insurance 26,065 16,818 9,247
F.I.C.A. 13,840 13,858 (18)
Other charges 11,000 9,870 1,130
Retirement 9,941 8,995 946
Temporary services 8,130 8,128 2
Office supplies 7,800 6,278 1,522
Repairs and maintenance 4,300 4,141 159
Workers' compensation insurance 981 906 75
Office machines maintenance 900 395 505
Travel and per diem 1,840 351 1,489
Books, publications, dues 1,200 249 951
Contractual services 694 190 504
Total finance 307,217 271,988 35,229
Legal counsel:
Legal services 135,000 146,053 (11,053)
Other general government:
Other charges 83,205 86,864 (3,659)
Salaries 100,119 60,873 39,246
Rentals and leases 30,625 47,253 (16,628)
Communication services 24,300 21,460 2,840
Promotional activities 15,700 19,144 (3,444)
Office supplies 3,938 15,064 (11,126)
Insurance /claims and judgments 10,510 10,713 (203)
Contractual services 16,918 10,078 6,840
Other personal services 15,900 8,567 7,333
Village hall maintenance 13,420 4,814 8,606
Workers' compensation insurance 10,000 3,856 6,144
Utility services 15,000 3,799 11,201
Transportation/postage 9,160 2,140 7,020
Printing and binding 500 1,586 (1,086)
Books, publications, dues 1,200 1,018 182
F.I.C.A. 2,180 941 1,239
Total other general government 352,675 298,170 54,505
Total general government 1,248,238 1,139,653 108,585
(Continued)
-41-
VILLAGE OF TEQUESTA, FLORIDA
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
GENERAL FUND
(Continued)
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Variance
Favorable
Budget Actual (Unfavorable)
Public safety:
Police department:
Salaries $1,109,930 $1,109,801 $ 129
Life and health insurance 138,225 128,120 10,105
Retirement 123,460 123,516 (56)
F.I.C.A. 89,060 91,346 (2,286)
Overtime 84,801 87,161 (2,360)
Other charges 71,137 68,413 2,724
Operating supplies 69,083 62,633 6,450
Workers' compensation insurance 51,885 47,501 4,384
Insurance 32,000 41,517 (9,517)
Repairs and maintenance 44,325 40,496 3,829
Communication services 15,640 14,774 866
Personnel training 10,654 9,471 1,183
Travel and per diem 6,840 4,907 1,933
Office supplies 3,900 4,340 (440)
Rentals and leases 5,388 3,448 1,940
Printing and binding 4,210 3,550 660
Books, publications, dues 2,640 2,062 578
Total police department 1,863,178 1,843,056 20,122
Emergency and disaster relief:
Civil preparedness 7,832 6,370 1,462
Fire rescue/EMS services:
Salaries 898,464 901,219 (2,755)
Life and health insurance 105,190 102,265 2,925
Other charges 80,638 71,628 9,010
F.I.C.A. 68,857 68,180 677
Workers' compensation insurance 53,586 53,045 541
Retirement 39,217 40,208 (991)
Operating supplies 49,190 38,653 10,537
Repairs and maintenance 40,363 34,231 6,132
Insurance 19,935 19,859 76
Volunteer fire rescue/EMS 13,057 11,990 1,067
Utility services 12,459 10,800 1,659
Communication services 7,736 8,106 (370)
Books, publications, dues 8,801 7,925 876
Travel and per diem 4,338 3,475 863
Office supplies 3,080 3,448 (368)
Contractual services 3,262 2,608 654
Rentals and leases 2,760 2,389 371
Printing and binding 1,061 513 548
Total fire rescue/EMS services 1,411,994 1,380,542 31,452
Total public safety 3,283,004 3,229,968 53,036
(Continued)
.-42-
VILLAGE OF TEQUESTA, FLORIDA
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
GENERAL FUND
(Continued)
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Variance.
Favorable
Budget Actual (Unfavorable)
Transportation:
Road and street facilities:
Contractual services $116,600 $105,814 $ 10,786
Salaries 84,450 83,880 570
Utility services 99,750 73,635 26,115
Repairs and maintenance 62,000 48,094 13,906
Professional fees 27,610 34,394 (6,784)
Road materials and supplies 18,000 12,215 5,785
Insurance 13,000 9,566 3,434
Life and health insurance 22,620 8,636 13,984
F.I.C.A. 6,100 6,257 (157)
Operating supplies 8,100 5,864 2,236
Workers' compensation insurance 6,000 5,746 254
Retirement 4,990 3,798 1,192
Other charges 2,400 694 1,706
Rentals and leases 3,000 2,975 25
Communication services 1,400 1,642 (242)
Books, publications, dues 200 153 47
Travel and per diem 500 - 500
Total transportation 476,720 403,363 73,357
(Continued)
-43-
VILLAGE OF TEQUESTA, FLORIDA
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
GENERAL FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Variance
Favorable
Bu_ dszet Actual (Unfavorable)
Culture /recreation:
Parks and recreation:
Salaries $ 104,269 $ 103,968 $ 301
Repairs and maintenance 71,342 66,975 4,367
Other charges 33,204 42,637 (9,433)
Contractual services 38,165 33,947 4,218
Utility services 24,500 19,380 5,120
Life and health insurance 25,150 19,308 5,842
F.I.C.A. 7,850 7,982 (132)
Aid to community organizations 7,000 7,000 -
Retirement 8,370 6,968 1,402
Workers' compensation insurance 3,100 5,505 (2,405)
Insurance 3,800 4,238 (438)
Communication services 2,869 2,814 55
Operating supplies 2,302 2,378 (76)
Aid to government organizations 1,770 1,750 20
Books, publications, dues 380 380 -
Office supplies 100 96 4
Total culture /recreation 334,171 325,326 8,845
Capital outlay:
Police 109,799 113,580 (3,781)
Fire rescue /EMS services 46,000 42,995 3,005
Culture /recreation 16,158 14,003 2,155
General government - other 13,728 11,296 2,432
Transportation 14,000 5,048 8,952
General government - executive 1,420 1,414 6
Total capital outlay 201,105 188,336 12,769
Debt service:
Principal retirement 163,717 1,907,263 (1,743,546)
Interest 208,399 79,537 128,862
Total debt service 372,116 1,986,800 (1,614,684)
Total expenditures $ 5,915,354 $ 7,273,446 $ (1,358,092
-44-
CAPITAL PROJECTS FUNDS
VILLAGE OF T'EQUESTA, FLORIDA
COMBINING BALANCE SHEET
CAPITAL PROJECTS FUNDS
SEPTEMBER 30, 2002
Capital Capital
Improvement Projects
Fund Fund Total
ASSETS
Cash and cash equivalents $ 15,477 $ - $ 15,477
Investments 824,193 2,521,113 3,345,306
Accounts receivable 16,622 50,000 66,622
Total assets $ 856,292 $2,571,113 $3,427,405
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 250,791 $ 327,518 $ 578,309
Due to other funds - 260,552 260,552
Total liabilities 250,791 588,070 838,861
Fund Balances:
Reserved for encumbrances 25,616 1,005,001 1,030,617
Unreserved:
Designated for road projects 155,370 - 155,370
Undesignated 424,515 978,042 1,402,557
Total fund balances 605,501 1,983,043 2,588,544
Total liabilities and fund balances $ 856,292 $2,571,113 $3,427,405
-45-
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Capital Capital
Improvement Projects
Fund Fund Total
Revenues:
Grants $ - $ 142,207 $ 142,207
Interest 4,535 1,113 $ 5,648
Total revenues 4,535 143,320 147,855
Expenditures:
Capital outlay 517,869 3,341,921 3,859,790
Deficiency of revenues over expenditures (513,334) (3,198,601) (3,711,935)
Other financing sources:
Operating transfers in 468,350 4,366,317 4,834,667
Proceeds from notes payable - 252,000 252,000
Excess (deficiency) of revenues over
expenditures and other financing sources (44,984) 1,419,716 1,374,732
Fund balances, beginning 650,485 563,327 1,213,812
Fund balances, ending $ 605,501 $1,983,043 $2,588,544
-46-
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
CAPITAL PROJECTS FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Capital Improvement Fund Capital Projects Fund Total
Variance Variance Variance
Favorable Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable
Revenues:
Grants $ - $ - $ - $ 147,488 $ 142,207 $ (5,281) $ 147,488 $ 142,207 $ (5,281)
Interest 14,600 4,535 (10,065) - 1,113 1,113 14,600 5,648 (8,952)
Total revenues 14,600 4,535 (10,065) 147,488 143,320 (4,168) 162,088 147,855 (14,233)
Expenditures:
Capital outlay 521,000 517,869 (3,131) 4,568,564 3,341,921 (1,226,643) 5,089,564 3,859,790 (1,229,774)
Deficiency of revenues over expenditures (506,400) (513,334) (6,934) (4,421,076) (3,198,601) 1,222,475 (4,927,476) (3,711,935) 1,215,541
Other financing sources:
Operating transfers in 506,400 468,350 (38,050) 1,178,076 4,366,317 3,188,241 1,684,476 4,834,667 3,150,191
Proceeds from notes payable - - - 3,243,000 252,000 (2,991,000) 3,243,000 252,000 (2,991,000)
Excess (deficiency) of revenues over
expenditures and other financing sources $ - (44,984) $ (44,984) $ - 1,419,716 $ 1,419,716 $ - 1,374,732 $ 1,374,732
Fund balances, beginning 650,485 563,327 1,213,812
Fund balances, ending $ 605,501 $1,983,043 $ 2,588,544
-47-
ENTERPRISE FUNDS
VILLAGE OF TEQUESTA, FLORIDA
COMBINING BALANCE SHEET
ENTERPRISE FUNDS
SEPTEMBER 30, 2002
Storm Refuse
Water and Community
Water Utility Recycling Development
Fund Fund Fund Fund Total
ASSETS
Assets:
Cash and cash equivalents $ 239,047 $ 12,668 $ 9,765 $ 9,912 $ 271,392
Investments 1,521,790 219,782 114,637 1,045,740 2,901,949
Accounts receivable 349,605 2,019 373 - 351,997
Due from other funds 260,552 - - - 260,552
Inventories 13,373 - - - 13,373
Restricted assets:
Cash and cash equivalents 10,000 - - - 10,000
Investments 575,882 - - - 575,882
Other assets 195,117 - - 1,788 196,905
Fixed assets, net 16,722,987 1,387,387 - 20,693 18,131,067
Total assets $19,888,353 $1,621,856 $124,775 $ 1,078,133 $22,713,117
LIABILITIES AND FUND EQUITY
Liabilities:
Accounts payable $ 114,046 $ 5,338 $ 18,480 $ 16,025 $ 153,889
Accrued liabilities 45,111 703 - 3,872 49,686
Deferred revenue - - - 8,309 8,309
Payable from restricted assets:
Deposits 294,293 - - - 294,293
Due to other funds 257 - - 84 341
Due to other governments 822 - - - 822
Current portion of notes payable 22,896 - - - 22,896
Current portion of bonds payable 150,000 - - - 150,000
Compensated absences 91,869 - 1,554 93,423
Notes payable 13,827 - - - 13,827
Bonds payable 7,243,346 - - - 7,243,346
Total liabilities 7,976,467 6,041 18,480 29,844 8,030,832
Fund equity:
Contributed capital 5,155,118 230,825 - 4,476 5,390,419
Retained earnings 6,756,768 1,384,990 106,295 1,043,813 9,291,866
Total fund equity 11,911,886 1,615,815 106,295 1,048,289 14,682,285
Total liabilities and fund equity $19,888,353 $1,621,856 $124,775 $ 1,078,133 $22,713,117
-48-
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
ENTERPRISE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Storm Refuse
Water and Community
Water Utility Recycling Development
Fund Fund Fund Fund Total
Operating revenues:
Charges for services $3,597,159 $ 293,194 $250,536 $ 73,313 $4,214,202
Licenses and permits - - - 616,918 616,918
Total operating revenues 3,597,159 293,194 250,536 690,231 4,831,120
Operating expenses:
Personal services 802,027 23,243 - 175,328 1,000,598
Purchased services 667,950 - 222,736 - 890,686
Depreciation 737,650 48,079 - 5,185 790,914
Repairs and maintenance 291,063 257,654 - 8,965 557,682
Management services 225,000 8,000 4,670 89,600 327,270
Contractual services 104,446 10,274 - 170,471 285,191
Professional services 172,661 17,712 - 17,405 207,778
Utilities 202,864 - - 1,768 204,632
Operating supplies 76,189 346 - - 76,535
Other 50,787 2,746 144 6,027 59,704
Insurance 42,187 3,027 - 3,996 49,210
Office supplies 27,909 8 - 3,217 31,134
Travel and per diem 2,618 - - 438 3,056
Total operating expenses 3,403,351 371,089 227,550 482,400 4,484,390
Operating income (loss) 193,808 (77,895) 22,986 207,831 346,730
Non - operating revenues (expenses):
Miscellaneous revenue 185,661 - - 975 186,636
Interest income 112,678 12,837 2,790 17,941 146,246
Reimbursement revenue - 127,533 - - 127,533
Interest and fiscal charges 392,591 - - - (392
Total non - operating revenues
(expenses) 94,252 140,370 2,790 18,916 67,824
Income before operating transfers 99,556 62,475 25,776 226,747 414,554
Operating transfers:
Operating transfers in - - - 60,000 60,000
Operating transfers out 1,319,400 (60,300 - - 1,379,700
Net operating transfers in (out) 1,319,400 (60,300 - 60,000 1,319,700
Net income (loss) (1,219,844) 2,175 25,776 286,747 (905,146)
Retained earnings, beginning 7,976,612 1,382,815 80,519 757,066 10,197,012
Retained earnings, ending $6,756,768 $1,384,990 $106,295 $ 1,043,813 $9,291,866
-49-
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VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF CASH FLOWS
ENTERPRISE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Storm Refuse
Water and Community
Water Utility Recycling Development
Fund Fund Fund Fund Total
Cash flows from operating activities:
Operating income (loss) $ 193,808 $(77,895) $ 22,986 $ 207,831 $ 346,730
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Depreciation 737,650 48,079 - 5,185 790,914
Loss on disposal of fixed assets 6,289 - - 1,000 7,289
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable 248,551 (1,918) (335) - 246,298
Inventories 24,313 - - - 24,313
Due from other funds (260,552) 132,270 - (1,788) (130,070)
Other assets 6,259 - - - 6,259
Increase (decrease) in:
Accounts payable and accrued liabilities (356,798) (138,841) 526 5,950 (489,163)
Due to other governments (15,622) - - - (15,622)
Deferred revenue 18,597 - - 8,309 26,906
Compensated absences 6,592 337 - - 6,929
Due to other funds 1,782,914 113,955 - 84 (1,896,785
Net cash provided by (used in)
operating activities 1,173,827 151,923 23,177 226,571 1,076,002
Cash flows from non - capital financing activities:
Operating transfers from other funds - - - 60,000 60,000
Operating transfers to other funds (1,319,400) (60,300) - - (1,379,700)
Other miscellaneous revenues 185,661 127,533 - 975 314,169
Net cash provided by (used in) non - capital
financing activities 1,133,739 67,233 - 60,975 1,005,531
Cash flows from capital and related financing activities:
Acquisition and construction of fixed assets (668,669) (358,237) - (19,429) (1,046,335)
Principal payments (163,036) - - - (163,036)
Interest paid 392,591 - - - 392,591
Net cash used for capital and related
financing activities 1,224,296 358,237 - (19,429) 1,601,962)
Cash flows from investing activities:
Purchases and sales of investments 1,297,427 442,758 (22,636) (302,942) 1,414,607
Interest received on investments 112,678 12,837 2,790 17,941 146,246
Net cash provided by (used in) investing activities 1,410,105 455,595 19,846 (285,001) 1,560,853
Net increase (decrease) in cash and cash equivalents (2,121,757) 12,668 3,331 (16,884) (2,122,642)
Cash and cash equivalents, beginning 2,370,804 - 6,434 26,796 2,404,034
Cash and cash equivalents, ending $ 249,047 $ 12,668 $ 9,765 $ 9,912 $ 281,392
Supplemental information:
Cash paid for interest $ 392,591 $ - $ - $ - $ 392,591
-51-
FIDUCIARY FUNDS
VILLAGE OF TEQUESTA, FLORIDA
COMBINING BALANCE SHEET
TRUST FUNDS
SEPTEMBER 30, 2002
Pension Expendable
Trust Trust
Funds Fund
Special
Law
All Enforcement
Pension Trust
Funds Fund Total
ASSETS
Cash and cash equivalents $ - $ 3,324 $ 3,324
Investments at fair value 1,877,112 9,086 1,886,198
Due from other funds 3,987 - 3,987
Total assets $1,881,099 $ 12 $1,893,509
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 550 $ - $ 550
Fund balances:
Reserved for:
Law enforcement - 12,410 12,410
Employees' pension benefits 1,880,549 - 1,880,549
Total fund balances 1,880,549 12,410 1,892,959
Total liabilities and fund balances $1,881,099 $ 12,410 $1,893,509
-52-
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF PLAN NET ASSETS
PENSION TRUST FUNDS
SEPTEMBER 30, 2002
Police General
Firefi h� ters Officers Employees Total
ASSETS
Investments at fair value $1,362,804 $ 267,469 $ 246,839 $1,877,112
Due from other funds 1,810 291 1,886 3,987
Total assets 1,364,614 267,760 248,725 1,881,099
LIABILITIES AND NET ASSETS
Liabilities:
Accounts payable 550 - - 550
Net assets held in trust for pension benefits $1,364,064 $ 267,760 $ 248,725 $1,880,549
-53-
VELLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF CHANGES IN PLAN NET ASSETS
PENSION TRUST FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Police General
Firefighters Officers Employ Total
ADDITIONS
Contributions:
State $ 81,917 $ 81,854 $ - $ 163,771
Employer 66,261 - 48,124 114,385
Employees 44,038 16,992 40,065 101,095
Total contributions 192,216 98,846 88,189 379,251
Investment income (loss):
Net depreciation in fair value of investments (101,513) (12,469) - (113,982)
Less investment expenses (11,545) (1,338) - (12,883)
Interest and dividends 40,076 4,923 3,157 48,156
Net investment income (loss) 72,982 8,884 3,157 (78,709)
Total additions 119,234 89,962 91,346 300,542
DEDUCTIONS
Pension benefits /refunds 1,692 4,529 10,501 16,722
Administrative expenses 6,421 1,330 1,125 8,876
Total deductions 8,113 5,859 11,626 25,598
Net increase 111,121 84,103 79,720 274,944
Net assets held in trust:
Beginning 1,252,943 183,657 169,005 1,605,605
Ending $1,364,064 $ 267,760 $ 248,725 $1,880,549
-54-
GENERAL FIXED ASSETS ACCOUNT GROUP
VILLAGE OF TEQUESTA, FLORIDA
SCHEDULE OF GENERAL FIXED ASSETS - BY SOURCE
SEPTEMBER 30, 2002
General fixed assets:
Land $1,937,467
Buildings 1,113,919
Improvements other than buildings 951,192
Equipment 2,195,991
Construction in progress 3,098,605
Total general fixed assets $ 9,297,174
Investment in general fixed assets:
General fund $ 9,297,174
Total investment in general fixed assets $ 9,297,174
-55-
VILLAGE OF TEQUESTA, FLORIDA
SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Buildings
and Construction
Land Improvements Equipment in Progress Total
General government $1,844,338 $ 910,568 $ 52,551 $ - $2,807,457
Public safety 43,401 120,989 1,804,990 3,098,605 5,067,985
Transportation - 7,713 247,975 - 255,688
Human services - - 5,520 - 5,520
Culture /recreation 49,728 911,197 84,955 - 1,045,880
1,937,467 1,950,467 2,195,991 3,098,605 9,182,530
Prior year data which
cannot be allocated - 114,644 - - 114,644
Total general fixed assets $1,937,467 $ 2,065,111 $ 2,195,991 $ 3,098,605 $ 9,297,174
-56-
VILLAGE OF TEQUESTA, FLORIDA
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION
FISCAL YEAR ENDED SEPTEMBER 30, 2002
General General
Fixed Fixed
Assets Assets
October 1, September 30,
2001 Additions Deletions 2002
General government $2,807,457 $ - $ - $ 2,807,457
Public safety 1,862,593 3,272,807 (67,415) 5,067,985
Transportation 248,415 7,273 - 255,688
Human services 5,520 - 5,520
Culture /recreation 340,312 706,447 879 1,045,880
5,264,297 3,986,527 (68,294) 9,182,530
Prior to allocation by function 114,644 - - 114,644
Total general fixed assets $ 5,378,941 $ 3,986,527 $ 68,294 $ 9,297,174
-57-
•
- y
STATISTICAL SECTION
VILLAGE OF TEQUESTA, FLORIDA
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (UNAUDITED) (1)
LAST TEN FISCAL YEARS
Public Physical Culture
Fiscal General Safety Environment Human and Capital Debt
Year Government fD Transportation Services Recreation Outlay Service Totals
1993 $ 939,549 $2,552,513 $ 428,910 $ 4,594 $ 591 $ 138,873 $ 185,178 $ 88,565 $4,338,773
1994 675,054 2,198,202 415,015 - 624 122,703 912,413 304,476 4,628,487
1995 770,264 2,249,850 458,208 4,179 472 154,508 1,590,410 201,415 5,429,306
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 1,139,653 3,229,968 403,363 - - 325,326 4,051,287 2,131,261 11,280,858
(1) Includes General, Special Revenue, Debt Service, Capital Projects and Expendable Trust Funds.
(2) Includes Fire/Emergency Contract with Palm Beach County beginning year 1985 through year 1993.
Tequesta began its own department beginning in year 1994.
(3) Refuse and recycling reported in Enterprise funds beginning in 1991.
Source: Village of Tequesta financial records.
-58-
VILLAGE OF TEQUESTA, FLORIDA
GENERAL REVENUES BY SOURCE (UNAUDITED) (1)
LAST TEN FISCAL YEARS
Licenses Charges Fines
Fiscal and Inter- for and Miscellaneous
Year Taxes Permits 3 governmental Services Forfeitures M Totals
1993 $2,666,148 $ 188,477 $ 531,696 $ 21,304 $ 46,037 $ 202,040 $3,655,702
1994 2,833,720 198,000 423,606 189,691 48,885 223,494 3,917,396
1995 2,985,573 292,272 898,701 241,848 43,555 308,037 4,769,986
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
(1) Includes General, Special Revenue, Debt Service, Capital Projects and Expendable Trust Funds.
(2) Includes intragovemment services, impact fees and interest income.
(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.
-59-
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 (11) (11) Collected Taxes L Ey
1993 $1,973,375 $1,958,191 99.2% $ 15,184 0.8%
1994 1,968,572 1,950,778 99.1% 17,794 0.9%
1995 2,048,066 2,028,987 99.1% 19,079 0.9%
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%
(1) Includes discounts taken by property taxpayers.
Source: Palm Beach County Tax Collector's office.
-60-
VILLAGE OF TEQUESTA, FLORIDA
TAXABLE VALUE AND JUST VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Ratio of
Taxable
Centrally Value
Real Property 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
1993 $ 329,131,590 $ 406,420,054 $15,683,045 $16,779,738 $ - $ - $ 344,814,635 $ 423,199,792 81%
1994 326,699,785 406,281,260 16,461,659 17,709,182 - - 343,161,444 423,990,442 81%
1995 328,167,741 409,679,164 16,070,906 18,042,404 - - 344,238,647 427,721,568 80%
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%
Source: Palm Beach County Tax Collector's Office
-61-
VILLAGE OF TEQUESTA, FLORIDA
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 Fund Coun Debt Construction Board Lib District District District Council District Total
1993 5.9000 4.6221 9.6030 0.3885 0.5470 0.1257 0.0520 0.3039 1.4750 23.0172
1994 5.9140 4.5499 10.0630 0.3915 0.5970 0.1257 0.0510 0.3297 1.4750 23.4968
1995 6.1280 4.5193 10.1850 0.4437 0.5970 0.1257 0.0490 0.3522 1.4500 23.8499
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 1.0250 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
Source: Palm Beach County Tax Collector's Office
-62-
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 Po ulation Value Debt Available Debt Value Capita
1993 4,551 $ 344,814,635 $ 580,000 $ 120,530 $ 459,470 0.13% $ 100.96
1994 4,609 343,161,444 1,365,000 98,453 1,266,547 0.37% 274.80
1995 4,623 344,238,467 1,310,000 85,751 1,224,249 0.36% 264.82
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
Sources: Palm Beach County Planning Board
University of Florida estimates
Federal census
Village of Tequesta Building Department records
-63-
VILLAGE OF T FQUESTA, FLORIDA
COMPUTATION OF LEGAL DEBT MARGIN
SEPTEMBER 30, 2002
Total assessed value $ 525,401,605
Legal debt margin:
Debt limitation - 10% of total assessed value $ 52,540,161
Total bonded debt outstanding $ 790,000
Less amount available in debt service fund (b) 141,913
Total debt applicable to limitation 648,087
Legal debt margin $ 51,892,074
(8) Palm Beach County Property Appraiser's Office, Form DR -422 "Final Current Year
Gross Taxable Value"
(b) IBR - Special Revenue
-64-
VILLAGE OF TEQUESTA, FLORIDA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
SEPTEMBER 30, 2002
Percentage Amount
Net Applicable Applicable
Taxing Debt to to
Authori Outstandine Tequesta Tequesta
Direct:
Village of Tequesta $ 648,087 100.00% $ 648,087
Overlapping:
Palm Beach County 251,430,000 0.64% 1,609,152
Palm Beach County School Board 194,475,000 0.64% 1,244,640
Total overlapping 445,905,000 2,853,792
Total $ 446,553,087 $3 501,879
Source: Above Government Entities.
-65-
VILLAGE OF T'EQUESTA, FLORIDA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES
LAST TEN FISCAL YEARS
Ratio
of
Debt
Service
to
Total Total Total
Fiscal Debt General General
Year Principal Interest Service Expenditures Expenditures
1993 $ 35,000 $ 53,565 $ 88,565 $ 4,338,773 2.0%
1994 221,383 83,093 304,476 4 6.6%
1995 90,354 111,061 201,415 5,429,306 3.7%
1996 100,556 106,305 206,861 5,610,290 3.7%
1997 104,059 103,712 207,771 4,857,465 4.3%
1998 138,071 114,158 252,229 4,815,656 5.2%
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 11,280,858 1.3 %.
-66-
VILLAGE OF TEQUESTA, FLORIDA
REVENUE BOND COVERAGE
WATER BONDS (UNAUDITED)
LAST TEN FISCAL YEARS
Net
Revenue
Available
for Debt Service Debt
Fiscal Gross Operating Debt Requirements Amortization Service
Year Revenue Expenses Service Princ Interest Account (1) Total Coverage
1993 $ 2,566,614 $ 2,051,891 $ 514,723 $110,000 $ 78,737 $ 65,254 $253,991 2.06
1994 2,690,107 2,110,928 579,179 265,000 66,405 (15,653) 315,752 1.83
1995 2,948,260 2,414,540 533,720 290,000 43,280 (97,158) 236,122 2.26
1996 3,283,922 2,451,485 832,437 270,000 17,355 (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
(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.
-67-
VILLAGE OF TEQUESTA, FLORIDA
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS (UNAUDITED)
LAST TEN FISCAL YEARS
New Commercial New Residential Just Property
Construction (1) Construction (1) Value 3
Number Number
Fiscal of of Value (4), Real Personal
Year Units Value Units New Rebuild Deposits (2) Property Property
1993 1 $ 101,700 8 $2,083,944 $ - $ 278,165,130 $ 406,420,054 $16,779,738
1994 - - 25 3,134,633 - 293,551,944 406,281,260 17,709,182
1995 - - 10 1,658,043 - 326,394,550 409,679,164 18,042,404.
1996 3 2,248,278 6 1,127,624 - 319,213,870 424,956,672 18,268,307,
1997 2 320,400 169 14,896,648 - 314,744,875 436,504,082 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
Source:
(1) Village of Tequesta Building Department
(2) Tequesta Commercial Banks and Savings and Loan Associations.
(3) Palm Beach County Property Appraiser's Office.
(4) Information presented where available.
-69-
VILLAGE OF T'EQUESTA, FLORIDA
PRINCIPAL TAXPAYERS
SEPTEMBER 30, 2002
Percentage
Type 2001 of
of Assessed Assessed
Business Valuation Valuation
Lighthouse Cove Apts Ltd. Apartment Building $13,850,954 2.65%
Tamwest Realty, Inc.(County Line Plaza) Shopping Center 12,687,234 2.43
RRC FL Three, Inc. ( Tequesta Shoppes) Shopping Center 7,720,000 1.48
Terrace Communities Tequesta Assisted Living Facility 7,390,772 1.41
H & J Tequesta Assoc Shopping Center 5,450,000 1.04
AHC Purchaser, Inc Assisted Living Facility 4,428,161 0.85
ALS Holdings Inc Assisted Living Facility 4,094,311 0.78
Tequesta Country Club Golf Club 3,521,835 0.67
JMZ Tequesta Properties, Inc Office Building 2,428,148 0.46
Leslie J. Gelber Single Family 2,520,463 0.48
Lplace Properties Ltd Bank Building 1,697,382 0.32
$ 65,789,260 12.58
Source: Palm Beach County Property Appraiser's Office
(1) Village of Tequesta, Community Development
-69-
VILLAGE OF T'EQUESTA, FLORIDA
DEMOGRAPHIC AND MISCELLANEOUS STATISTICS
SEPTEMBER 30, 2002
Date of Incorporation 1957
Forms of Government 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 46.6 lane miles
Fire Protection Number of stations - 1
Number of certified firefighters - 16 F/T, 7 P/T
Fire Rating - 4
Police Protection Number of stations - 1
Number of certified officers - 16 F/T, 1 P/T
Number of dispatchers - 4 F/T, 2 P/T
Municipal Water Department Number of customers - 5,055
Average daily consumption - 3.108 million gallons
Miles of water mains - approximately 50 miles
Sanitary Sewage Service provided by Loxahatchee River Environmental
Control District (ENCON)
Storm Sewers Adequate coverage
Garbage Collection Service franchised to Nichol's Sanitation
Frequency of service is bi- weekly
Electric Service Florida Power & Light Company
Telephone Service BellSouth
Building; Permits Issues 970
Recreation and Culture Number of parks - 3, approximately 48 acres
Number of libraries - 1, branch of Palm Beach County System
Number of volumes - 20,000 - 22,000
MuniciRal Emj2lovee s 85
-70-
VILLAGE OF TEQUESTA, FLORIDA
DEMOGRAPHIC STATISTICS (UNAUDITED)
LAST TEN FISCAL YEARS
Education
Level in
Per Years of
Capital Median Formal Unemployment
Fiscal Population Income Age Schooling Rate
Year ( (2) L21 M
1993 4,551 - - - 9.2 %
1994 4,609 - - - 8.4%
1995 4,623 - - - 7.0%
1996 4,637 - - - 7.5%
1997 4,686 - - - 3.6%
1998 5,036 - - - 4.7%
1999 5,122 - - - 5.7%
2000 5,273 - - - 5.2%
2001 5,307 - - - 5.5%
2002 5,327 - - - 5.1%
Sources:
(1) Palm Beach County Planning Board, University of Florida Estimates and Federal Census.
(2) U.S. Department of Commerce, Bureau of the Census. Information provided when available.
(3) Agency for Workforce Innovation (AWI).
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VILLAGE OF TEQUESTA, F LORIDA
SCHEDULE OF INSURANCE
SEPTEMBER 30, 2002
Policy Number Covera¢e
Coregis Commercial Package
(Buildings, Contents /Special Property Coregis 651006854 $11,260,293
Group Life Insurance Canada Life 85597 1.5 times annual salary plus $5,000
maximum of $150,000
Croup Hospitalization Cigna 3150680 Various
Business Automobile Liability Coregis 651006854 $2,000,000
Public Employees Blanket
Fidelity Bond CCP0017500 $100,000
Public Official Bond Zurich 08538214 $100,000
Workmen' Compensation PGiT 139100 $1,000,000
Public Official's Errors and
Omissions 362788300 $1,000,000
Police Professional Liability Coregis 651006854 $2,000,000
EMT Professional Liability Coregis 651006854 $2,000,000
Boiler and Machinery Liability FBPAT9442007 $5,000,000
Unlawful and Intentional Death
(Police and Fire Department personnel) ETB102089 $75,000
Pollution Liability FPL7509020 $1,000,000
Fiduciary Liability (Pension
Board of Trustees) Travelers 103505325 $2,000,000
Professional Liability Gresham EM50000232 $1,000,000
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1
i
1 •"
COMPLIANCE SECTION
RC Rachlin Cohen & Holtz LLP
Certified Public Accountants & ConSllltdnb,
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 Auditinz Standards
Honorable Mayor, Village Commission and Village Manager
Villagc of Tequesta, Florida
We have audited the general purpose financial statements of the Village of Tequesta, Florida (the Village)
as of September 30, 2002 and for the year then ended, and have issued our report dated January 17, 2003.
We conducted our audit in accordance with generally accepted auditing standards and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States,
Compliance
As part of obtaining reasonable assurance about whether the Village'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.
Internal Control Over F inancial 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 opinion 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 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.
-73-
450 East Las Olas Boulevard, Suite 950, Ft. Lauderdale, Florida 33301 • Tel 954l- 525 -1040 • Fax 954- 525 -20114
Offices in: Miami • Ft. Lauderdale • West Palm Beach o Stuart
a "1w. rchcpa.com
Mertdber of 5ununit Internatiwtat A.; xiate:. Inc With n9ium in phimpal 06 11 throughout the works
WmM cif the ,Amrricm hts8tute of CerhfiLNi rubGc kcmintants and member of the I torida Inoinue of Certified Public 9 "untant.,
Honorable Mayor, Village Commission and Village Manager
Village of Tequesta, Florida
Page Two
This report is intended for the information and use of the Mayor, Village Commission, management and
the regulatory authorities and is not intended to be and should not be used by anyone other than the
specified parties. However, this report is a matter of public record and its distribution is not limited.
&ej� &4- - iE11 /- /-P
Fort Lauderdale, Florida O
January 17, 2003
-74-
�C Rachlin Cohen & Holtz LLP
Certified Public Accountants & Consultants
Management Letter in Accordance with the Rules of the Auditor General of the State of Florida
Honorable Mayor, Village Commission and Village Manager
Village of Tequesta, Florida
We have audited the general purpose financial statements of the Village ofTequesta, Florida (the Village)
as of and for the year there ended, and have issued a report thereon dated January 17, 2003. 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. We have issued our Report of Independent Certified Public Accountants on Compliance
and on Internal Control over Financial Reporting. Disclosure in these reports dated January 17, 2003
should be considered in conjunction with this management letter.
In connection with our audit of the general purpose financial statements of the Village for the year ended
September 30, 2002, we report the following in accordance with Chapter 10.550 Rules of the Auditor
General Local Governmental Entity Audits which requires that this report specifically address but not be
limited to the matters outlined in Rule 10.554(1)(g):
1. No inaccuracies, shortages, defalcations, and /or violations of laws, rules, regulations and
contractual provisions were reported in the preceding annual financial audit.
2. The Village, during fiscal year 2002, was not in a state of financial emergency as defined by
Florida Statute, Section 218.503 (1).
3. Recommendations made in the preceding annual financial audit were addressed. There were no
current year recommendations to improve the Village's present financial management,
accounting procedures and internal controls.
4. The Village is in compliance with the investment policy of public funds established by Section
218.415 of the Florida statutes.
5. During the course of our audit, 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 any illegal or improper expenditures.
c. Had improper or inadequate accounting procedures.
d. Failed to record financial transactions which could have a material effect on the Village's
general purpose financial statements.
e. Had other inaccuracies, shortages, defalcations and instances of fraud.
-75-
450 East Las Olas Boulevard, Suite 950, Ft. Lauderdale, Florida 33301 • Tel 934- 525 -1040 @ Fax 954- 525 -2003
Offices in: Miami • Ft. Lauderdale • West Palm Beach • Stuart
www.rchcpa.com __—
Atem1vr ct Summit Intemahaial Awmatm Inc. with offict, in principal cities throui*hnut the work(
A -tember of the .American Imtitute et CertitkA Pubs' Accountants and member of the Florida InAtute c>f Certified Public Accountants
RCS
Honorable Mayor, Village Commission and Village Manager
Village ofTeyuesta, Florida
Page Two
6. The annual financial report for the year ended September 30, 2002 has been filed with the
Department of Banking and Finance pursuant to Section 218.32(1)(a), Florida Statutes and is in
agreement with the audited financial statements of the same period.
7. The Village was incorporated by Laws of Florida 57 -1915. There are no component units.
8. 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 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 regarding deteriorating financial conditions.
This report is intended for the information of the Mayor, Village Commission, management, and the
Auditor General of the State of Florida and is not intended to be and should not be used by anyone other
than those specified parties. However, this report is a matter of public record and its distribution is not
limited.
Fort Lauderdale, Florida
January 17, 2003
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