Tequesta CAFR - 2010
͵ͲǡʹͲ10
2010
VILLAGEOFTEQUESTACOUNCILMEMBERS2010
ǣ ǡVice-MayorThomasPaternoǡ
riciaǡ
Turnquest
VILLAGE OF TEQUESTA, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
Prepared By
Finance Department
The Village of Tequesta, Florida
VILLAGE OF TEQUESTA, FLORIDA
TABLE OF CONTENTS
I. INTRODUCTORY SECTION
Letter of Transmittal .............................................................................................................. i-v
Certificate of Achievement for Excellence in Financial Reporting ....................................... vi
Organization Chart ................................................................................................................ vii
List of Principal Officials ..................................................................................................... viii
II. FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT ........................................................................... 1-2
MANAGEMENT’S DISCUSSION AND ANALYSIS ..................................................... 3-15
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Assets ...................................................................................................16
Statement of Activities .....................................................................................................17
Fund Financial Statements
Balance Sheet – Governmental Funds ..............................................................................18
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds .....................................................................................................19
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
Balances of Governmental Funds to the Statement of Activities ..................................20
Statement of Net Assets – Proprietary Funds ...................................................................21
Statement of Revenues, Expenses and Changes in Net Assets – Proprietary Funds .......22
Statement of Cash Flows – Proprietary Funds .................................................................23
Statement of Fiduciary Net Assets – Fiduciary Funds .....................................................24
Statement of Changes in Fiduciary Net Assets – Fiduciary Funds ..................................25
Notes to Financial Statements ....................................................................................... 26-63
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule – General Fund ..............................................................64
Note to the Budgetary Comparison Schedule .....................................................................65
Schedule of Employer Contributions - Pensions .................................................................66
Schedule of Funding Progress - Pensions ...........................................................................67
Schedule of Funding Progress - Other Post Employment Benefits .....................................68
VILLAGE OF TEQUESTA, FLORIDA
TABLE OF CONTENTS
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet – Nonmajor Governmental Funds ............................................69
Combining Statement of Revenues, Expenditures and Changes in Fund Balances –
Nonmajor Governmental Funds .......................................................................................70
Budgetary Comparison Schedule – Special Law Enforcement Trust Fund ........................71
Budgetary Comparison Schedule – Capital Improvement Fund .........................................72
Budgetary Comparison Schedule – Capital Projects Fund .................................................73
Combining Statement of Net Assets – Nonmajor Enterprise Funds ...................................74
Combining Statement of Revenues, Expenses and Changes in Net Assets –
Nonmajor Enterprise Funds ..............................................................................................75
Combining Statement of Cash Flows – Nonmajor Enterprise Funds .................................76
Combining Statement of Fiduciary Net Assets ...................................................................77
Combining Statement of Changes in Fiduciary Assets .......................................................78
III. STATISTICAL SECTION
Net Assets by Component ......................................................................................................79
Changes in Net Assets ...................................................................................................... 80-81
Fund Balances, Governmental Funds .....................................................................................82
Changes in Fund Balances, Governmental Funds ..................................................................83
Assessed and Estimated Actual Value of Taxable Property ..................................................84
Property Tax Rates – All Direct and Overlapping Governments ...........................................85
Principal Property Taxpayers .................................................................................................86
Property Tax Levies and Collections .....................................................................................87
Ratios of Outstanding Debt by Type ......................................................................................88
Ratio of Net Outstanding Debt to Assessed Value and Net Bonded Debt
Per Capita ............................................................................................................................89
Computation of Legal Debt Margin .......................................................................................90
Direct and Overlapping Governmental Activities Debt .........................................................91
Pledged-Revenue Coverage – Revenue Bonds - 1994 ...........................................................92
Demographic and Economic Statistics ...................................................................................93
Principal Employers ...............................................................................................................94
Full-time-Equivalent Village Government Employees by Function/Program .......................95
Operating Indicators by Function/Program ............................................................................96
Capital Asset Statistics by Function/Program ........................................................................97
VILLAGE OF TEQUESTA, FLORIDA
TABLE OF CONTENTS
IV. COMPLIANCE SECTION
Independent Auditors’ Report on Compliance and on Internal Control over Financial
Reporting and on Compliance and Other Matters based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards .............. 98-99
Management Letter in Accordance with the Rules of the Auditor General of the
State of Florida .......................................................................................................... 100-101
Page Intentionally Left Blank
INTRODUCTORY SECTION
H[^^SYWXaFWcgWefS
345 Tequesta Drive
Tequesta, Florida 33469-027
(561) 768-0424
www.Tequesta.org
April 28, 2011
To the Honorable Mayor,
Members of the Village Council
And Citizens of the Village of Tequesta, Florida
We are pleased to submit the Comprehensive Annual Financial Report (CAFR) of the
Village of Tequesta for the fiscal year ended September 30, 2010. Publication of the
CAFR meets the requirement of Chapter 11.45 of the Florida Statues, Chapter 10.550 of
the rules of the Auditor General of the State of Florida which requires the Village to
publish, within twelve months of the close of each fiscal year, a complete set of audited
financial statements. The Comprehensive Annual Financial Report
(CAFR), for the fiscal year ended September 30, 2010.is published not only to meet State
law requirements but to demonstrate the Village philosophy of transparency by
presenting all disclosures necessary for the reader to gain an understanding of the
The financial statements included in this report conform to generally accepted
accounting principles (GAAP) in the United States of America as promulgated
by the Governmental Accounting Standards Board (GASB).
Management provides a narrative introduction, overview and analysis to
accompany the basic financial statements in the form of
Discussion and Analysis. The MDA complements this letter of transmittal and
should be read in conjunction with it.
the Village of Tequesta.
Management assumes full responsibility for the completeness and reliability of
the information presented.
We believe the data, as presented, isaccurate in all material respects.
We assert that, to the best of our knowledge and belief, this financial report is
complete and reliable in all material respects.
To provide a reasonable basis for making these representations, management established
a comprehensive internal control framework that is designed for this purpose. Because
comprehensive framework of internal controls has been designed to provide reasonable
rather than absolute assurance that the financial statements will be free from material
misstatement.
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The Village’s financial statements have been audited by Marcum LLP, a national firm of
licensed certified public accountants. The independent auditor concluded, based upon the
audit, that there was reasonable basis for rendering an unqualified opinion that the Village’s
financial statements for the fiscal year ended September 30, 2010 are fairly presented in
accordance with GAAP. The independent auditor’s report is located at the front of the
financial section of this report.
PROFILE OF THE VILLAGE OF TEQUESTA
The Village of Tequesta, Florida is a municipal corporation organized June 4, 1957
pursuant to Special Act 57-1915, Laws of Florida. The Village has a Council-Manager form
of government. All powers of the Village are vested in an elected governing body of the
Village consisting of a five member Village Council responsible for enacting ordinances,
resolutions and regulations governing the Village, adopting budgets, determining policies,
as well as appointing the members of various advisory boards and the Village Manager.
The Village Manager executes the laws and administers the government as well as attends
to the day-to-day affairs of the Village.
The Village of Tequesta provides a full range of services, including police and fire
protection; the construction and maintenance of streets and other infrastructure; recreational
and cultural activities; water and stormwater utilities and contracts for sanitation services.
The Village’s basic operating unit is a department. Departments concentrate their activities
on various functions: general government, public safety, transportation and leisure services.
For fiscal year 2010, the gross taxable value of real, personal and centrally assessed
property was $834 million. The majority of the Village is made up of residential properties.
Commercial properties represent approximately 9.5% of property values. The Village has
no discernable level of industry.
The Budget for Planning and Control
The annual budget serves as the foundation for the Village of Tequesta’s financial planning
and control. The budget is a policy document which incorporates and reflects the values,
goals and priorities identified by the Village Council and residents. It is also the Village’s
proposed business plan for the fiscal year, outlining the priorities and financial resources to
carry out the Council’s mission of maintaining and enhancing the highest possible level of
public service delivery and quality of life for the Village of Tequesta residents.
Operating budgets, as well as a 5 year capital improvement plan, are adopted on an annual
basis by our governing body. The legal level of budgetary control is at the fund level;
st
however, the Village manages at the department level. Prior to October 1, the Village
Council adopts the approved budget along with a resolution establishing the property tax
rate (millage) required to fund the budget. Department heads recommend transfers of
budgeted amounts within their department. Supplemental appropriations require the special
approval of the governing council. All annual appropriations lapse at the end of the fiscal
year.
The Village department’s submits their budgets to the Village Manager, who after review
submits the proposed budget to the Village Council. The Village Council reviews the
budget, holds workshops and two public hearings to obtain citizen before approving the
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budget. Prior to October 1, the Village Council adopts the approved budget along with a
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resolution establishing the property tax rate (millage) required to fund the budget.
Department heads recommend transfers of budgeted amounts within their department. The
Village Council may establish procedures by which the designated budget officer may
authorize certain budget amendments within a department provided that the total of the
appropriations of the department is not changed, all other transfers and supplemental
appropriations require the approval of the governing council.
Budget-to-actual comparisons are provided in this report for each individual governmental
fund for which an appropriated annual budget has been adopted.
FACTORS AFFECTING FINANCIAL CONDITION
The information presented in the financial statements is perhaps best understood when it is
considered from the broader perspective of the specific environment within which the
Village of Tequesta operates.
LOCAL ECONOMY AND ECONOMIC CONDITION AND OUTLOOK
The Village of Tequesta is an affluent residential community in Palm Beach County,
Florida. 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. The Village is approximately 2 square miles and almost
completely built-out/developed.
Property value assessments for tax year 2010 decreased approximately 10%, which is the
second year the Village has experienced this reduction.
According to the National Bureau of Economic Research, the economic recession officially
began December 2007 and ended June 2009. The Village and many other governments felt
the effect of the longest recession since WWII, a year later. By the end of 2010, the
Business Cycle Dating Committee of the National Bureau of Economic Research declared
the end-date of the recession and confirmed that it was the deepest on record since the Great
Depression in terms of job losses. It is important to note that the Bureau clarified that, “in
determining that a trough occurred in June 2009, the committee did not conclude that
economic conditions since that month have been favorable or that the economy has returned
to operating at a normal capacity. Rather, the committee determined only that the recession
ended and a recovery began in that month.” The Village first experienced the effect of the
recession through lowered property values which resulted in lower revenues from ad
valorem taxes. In addition, the Village noticed through its trend analysis and other
economic indicators that revenue from sales taxes had fallen flat and we expect no growth
in those areas over the next year. The biggest indicators of an upswing in this economy are
lower unemployment and job growth and there have not been significant changes in either.
Indications are that the Village has experienced less of an exposure to the housing
foreclosures than those experienced nation-wide. One of the indicators, water utility bills,
are showing that less than one-half of a percent (½ %) of our utility billing accounts have
been transferred from individuals to banks or other lending institutions and this trend has
been improving over the past year.
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Our Future
The Village of Tequesta is not immune to the negative economic environment that is
covering the country and affecting so many municipalities. However, the Village has
been preparing for the downturn in the economy over the past few years as it was
apparent that the continued increase in credit and property values could not be
sustained. During those “prosperous years”, the Village used additional income to pay
down debt, to purchase, construct and repair capital assets with existing cash and to
build reserves. Now, facing lean years, we are in a sound financial position that allows
us time to plan and adjust to the changing economic environment, rather than react to it.
However, it is important to note that it has not been an easy task for the Village to
maintain a consistent and high level of quality services to the residents in these times
when revenues have decreased and show flat or low growth – even though the Village
Council, administration and working staff may have made it appear easy. It was
achieved through hard work, long hours, pay and benefit concessions and the making of
fiscally sound, responsible and sometimes painful decisions by the administration,
working staff and Village Council. The Village is very fortunate to have a citizenry that
is active on many boards and committees, a working staff that has shown its willingness
to take on additional responsibilities and an expanded workload and very importantly, a
Village Council that is very responsive to the needs of the residents and staff during
these challenging times.
Long-Term Financial Planning
Due to the state of the economy, the main focus/challenge of long-term financial planning
for the Village of Tequesta continues to be maintaining a high level of services supported
by a stagnant economy. The Village of Tequesta’s primary focus is to identify additional
revenue sources and cost savings. Some of the new revenue sources the Village has
identified include new lease contracts and the contracting of existing services to other
governments. As with so many governments, the Village will be focusing on the growing
cost of health care and post retirement benefits. The Village has been able to keep health
care costs level during the 2010 fiscal year, but realizes that these costs continue to rise.
The health benefits committee, which includes employees and representatives from all
collective bargaining units, continues to meet to explore ways to keep these costs down
while affording employees health care. In addition, the Village has begun discussing
options with the three collective bargaining units to curb the cost of rising post retirement
benefits.
The Village has a five-yearcapital improvement plan and continues to maintain and
enhance existing roadways, parks and recreational facilities. Tequesta Drive Bridge was
found to be structurally unsound and in need of immediate replacement. The Village
secured $3,000,000 in Federal Economic Stimulus Funds to build a replacement bridge that
connects two sections of the Village. The Village entered into an agreement with the
Florida Department of Transportation (FDOT) in which they took over the construction
project. The Village signed a memorandum of understanding (MOU) with the FDOT, that
when the project is completed the FDOT will turn the bridge over to the Village and the
Village will be responsible for all bridge maintenance after that date. Construction was
completed in December 2010.
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MAJOR INITIATIVES
Review the Village’s investment policies and strategies to protect the Village’s assets
in the current economic environment.
Continue to explore alternative revenue sources, at both the state and federal level,
with the assistance of a professional lobbyist.
Continue to explore annexation of contiguous properties in unincorporated Palm
Beach County.
Seek out new ways to reduce the cost of health care and post retirement benefits.
Complete construction of a new reverse osmosis train reducing demand on surficial
wells and increasing natural water supply.
AWARDS AND ACKNOWLEDGEMENTS
The Government Finance Officers Association (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to Tequesta for its comprehensive
annual financial report for the fiscal year ended September 30, 2009. This was the twenty-
sixth consecutive year that Tequesta has received this prestigious award. In order to be
awarded a Certificate of Achievement, Tequesta had to publish an easily readable and
efficiently organized comprehensive annual financial report. This report satisfied both
generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year. We believe that our current
comprehensive annual financial report will continue to meet the Certificate of Achievement
Program’s requirements and we are submitting it to the GFOA to determine its eligibility
for another certificate.
The preparation of this report would not have been possible without the efficient and
dedicated services of the entire staff of the finance department. We would like to express
our appreciation to all members of the department who assisted and contributed to the
preparation of this report.
In closing, we must also acknowledge the Mayor and Council for their unfailing support for
maintaining the highest standards of professionalism in the management of the Village of
Tequesta’s finances.
Respectfully submitted,
Michael R. Couzzo, Jr. JoAnn Forsythe, CPA
Finance Director
Village Manager
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vi
VILLAGE OF TEQUESTA, FLORIDA
ORGANIZATION CHART
SEPTEMBER 30, 2010
vii
VILLAGE OF TEQUESTA, FLORIDA
LIST OF PRINCIPAL OFFICIALS
SEPTEMBER 30, 2010
VILLAGE COUNCIL
Patricia Watkins Mayor
Thomas Paterno Vice-Mayor
Vince Arena Councilmember
James Humpage Councilmember
Calvin Turnquest Councilmember
VILLAGE OFFICIALS
Michael R. Couzzo, Jr. Village Manager
Trela White (Corbett & White, PA) Village Attorney
Lori McWilliams, MMC Village Clerk
JoAnn Forsythe, CPA Finance Director
James M. Weinand Fire Chief
Donald Ricciardi Acting Police Chief
James M. Weinand Acting Director of Community Development
Russell White Public Services Manager
Michael R. Couzzo, Jr. Director of Utilities
Greg Corbitt Director of Parks and Recreation
VILLAGE AUDITORS
Marcum LLP
viii
FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the
Village of Tequesta, Florida (the Village), as of and for the year ended September 30, 2010,
which collectively comprise the Village’s basic financial statements as listed in the table of
contents. These financial statements are the responsibility of the Village's management. Our
responsibility is to express opinions on these basic financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes consideration of
internal control over financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Village’s internal control over financial reporting. Accordingly, we express
no such opinion. An audit also includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the Village as of September 30,
2010, and the respective changes in financial position and cash flows, where applicable, thereof
for the year then ended in conformity with accounting principles generally accepted in the United
States of America.
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In accordance with Government Auditing Standards, we have also issued our report dated April
28, 2011 on our consideration of the Village’s internal control over financial reporting and on
our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing
of internal control over financial reporting and compliance and the results of that testing, and not
to provide an opinion on the internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be considered in assessing the results of our audit.
The Management’s Discussion and Analysis and the Required Supplementary Information on
pages 3 through 15 and pages 64 through 68 are not a required part of the basic financial
statements but are supplementary information required by accounting principles generally
accepted in the United States of America. We have applied certain limited procedures, which
consisted principally of inquiries of management regarding the methods of measurement and
presentation of the required supplementary information. However, we did not audit the
information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Village’s basic financial statements. The introductory section,
combining and individual fund statements and schedules and statistical tables are presented for
purposes of additional analysis and are not a required part of the basic financial statements. The
combining and individual fund statements and schedules have been subjected to the auditing
procedures applied in the audit of the basic financial statements and, in our opinion, are fairly
stated in all material respects in relation to the basic financial statements taken as a whole. The
information identified in the table of contents as the introductory and statistical sections have not
been subjected to the auditing procedures applied in the audit of the basic financial statements
and, accordingly, we express no opinion on them.
Fort Lauderdale, FL
April 28, 2011
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MANAGEMENT’S DISCUSSION AND ANALYSIS
(MD&A)
Village of Tequesta, Florida
Management’s Discussion and Analysis
As management of the Village of Tequesta, we offer readers of the Village’s financial statement this
narrative overview and analysis of the financial activities of the Village for the fiscal year ended
September 30, 2010. We encourage readers to consider the information presented here in conjunction
with the additional information that we have furnished in the letter of transmittal found on pages i to v of
this report.
Financial Highlights
The assets of the Village of Tequesta exceeded its liabilities at the close of fiscal year 2010 by $31
million (net assets). Of this amount, $10 million (unrestricted net assets) may be used to meet the
ongoing obligations to the citizens and creditors.
The Village’s total net assets decreased by $416 thousand (1.3%) during the current fiscal year.
General revenues decreased $359 thousand (4.6%). This decrease is mainly due to a decrease in
property values resulting in lower revenues from ad valorem (property) taxes.
Total government-wide expenses increased $703 thousand or 5.2% over the prior year mainly due to
additional costs to keep the current level of services during the closing of the “old” Tequesta Bridge
and the building of the “new” Tequesta Bridge.
As of the close of the 2010 fiscal year, the Village’s governmental funds reported combined ending
fund balances of $5.48 million, a decrease of $754 thousand (12.1%) from fiscal year 2009.
At the end of the current fiscal year, fund balance for the General Fund was $3.98 million, a decrease
of $704 thousand (15%) from the prior year. Of this balance, $130 thousand was reserved for
inventories, prepaid items and encumbrances, $1 million was designated for hurricane/disasters, $134
thousand was designated for subsequent year’s expenditures and $2.7 million was unreserved and
undesignated.
The Village’s total non-current liabilities decreased by $336 thousand (3.1%) during the current fiscal
year. Please see, Notes to Basic Financial Statements, Note 7 on page 47.
The Village implemented GASB 45 in fiscal year 2010 and recorded a net OPEB obligation of
$89,000 related to a health-care plan that allows eligible individuals to continue health, dental and
other insurance at their own cost, upon retirement. Please see, Notes to Basic Financial Statements,
Note 10 on page 58.
The Village did not expend $500,000 or more in Federal and/or State financial assistance in the fiscal
year ended September 30, 2010 and for that reason did not meet the threshold for a single audit
according to the Florida Single Audit Act (section 215.97 F.S.) and OMB Circular A-133.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Village of Tequesta’s basic
financial statements. The Village’s basic financial statements consist of three components: 1)
government-wide financial statements, 2) fund financial statements, and 3) notes to the financial
statements. In addition to these basic financial statements, this report contains other supplementary
information.
Government-wide financial statements:
Thegovernment-wide financial statements are designed to
provide readers with a broad overview of the Village’s financial position and activities, in a manner
similar to a private-sector business.
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Thestatement of net assets presents information on the Village’s total assets and total liabilities, with the
difference between the two reported as net assets. Over time, increases or decreases in net assets may
serve as a useful indicator of whether the financial position of the Village is improving or deteriorating.
Thestatement of activities presents information showing how the Village’s net assets changed during the
most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise
to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are
reported in this statement for some items that will result in cash flows in future fiscal periods (e.g.,
uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the Village that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that are
intended to recover all or a significant portion of their costs through user fees and charges (business-type
activities). The governmental activities of the Village included general government, public safety,
transportation and leisure services. The business-type activities of the Village included water, stormwater
and refuse and recycling.
The government-wide financial statements can be found on pages 16-17 of this report.
Fund financial statements:
Afundis a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The Village, like other state and
local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements. All of the funds of the Village can be divided into three categories: governmental funds,
proprietary funds and fiduciary funds.
Governmental fund: Governmental funds are used to account for essentially the same functions reported
asgovernmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, as well as on balances of spendable resources available at
the end of the fiscal year. Such information may be useful in evaluating the Village’s near term financing
requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the Village’s near-term financing decisions.
Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between
governmental funds andgovernmental activities.
The Village maintains four individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and
changes in fund balance for the General Fund which is considered a major fund. Data from the other
three governmental funds is combinedinto a single, aggregated presentation. Individual fund data for
each of these non-major governmental funds is provided in the form of combining statements elsewhere
in this report.
The Village adopts an annual appropriated budget for its General Fund. A budgetary comparison
statement has been provided for the General Fund to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 18-20 of this report.
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Proprietary funds: The Village maintains one type of proprietary fund.Enterprise funds are used to
report the same functions presented as business-type activities in the government-wide financial
statements. The Village uses enterprise funds to account for its water, stormwater and refuse and
recycling operations.
Proprietary funds provide the same type of information as the government-wide financial statements, only
in more detail. The proprietary fund financial statements provide separate information for the Water
Fund. Data from Stormwater and Refuse & Recycling funds are combined into a single, aggregated
presentation.
The basic proprietary fund financial statements can be found on pages 21-23 of this report.
Fiduciary funds: Fiduciary funds are used to account for resources held for the benefit of parties outside
the Village. Fiduciary funds are not reflected in the government-wide financial statement because the
resources of those funds are not available to support the Village’s own programs. The accounting used
for fiduciary funds is much like that used for proprietary funds.
The basic fiduciary fund financial statements can be found on pages 24-25 of this report.
Notes to the financial statements: The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The notes to
the basic financial statements can be found on pages 26-63 of this report.
Other information: In addition to the basic financial statements and accompanying notes, this report also
presents certain required supplementary information concerning the Village of Tequesta’s progress in
funding its obligation to provide pension benefits and other post employment benefits to its employees.
Required supplementary information can be found on pages 64-68 of this report.
The combining statements referred to earlier in connection with non-major governmental funds, as well
as, non-major enterprise funds and fiduciary funds are presented immediately following the required
supplementary information. Combining and individual fund statements and schedules can be found on
pages 69-78 of this report.
Government-wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of the Village’s financial position.
In the case of the Village of Tequesta, total assets exceeded liabilities by approximately
$31 million at the close of the most recent fiscal year.
The largest portion of the Village’s net assets (67%) represents investments in capital assets (e.g., land,
buildings, machinery and equipment), less any related outstanding debt used to acquire those assets. The
Village uses these capital assets to provide services to citizens; consequently, they are notavailable for
future spending. Although the Village’s investment in its capital assets is reported net of related debt, it
should be noted that the resources needed to repay this debt must be provided from other sources, since
the capital assets themselves cannot be used to liquidate these liabilities.
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Village of Tequesta's Net Assets
Governmental Business-type
ActivitiesActivitiesTotal
2010 2009 2010 2009 2010 2009
Assets
Current and other assets $ 6,478,993 $ 7,554,503 $ 5,297,975 $ 4,509,551 $11,776,968 $12,064,054
Capital assets, net 11,105,211 11,195,372 19,050,305 19,967,285 30,155,516 31,162,657
Total assets $17,584,204 $18,749,875 $24,348,280 $24,476,836 $41,932,484 $43,226,711
Liabilities
Long-term liabilities $4,213,699 $4,342,028 $6,160,706 $6,367,892 $10,374,405 $10,709,920
Other liabilities 538,274 858,488 175,244 398,148 713,518 1,256,636
Total liabilities $4,751,973 $5,200,516 $6,335,950 $6,766,040 $11,087,923 $11,966,556
Net assets
Invested in capital assets,
net of related debt $7,525,570 $7,330,897 $13,037,012 $13,713,525 $20,562,582 $21,044,422
Unrestricted 5,306,661 6,218,462 4,975,318 3,997,271 10,281,979 10,215,733
Total net assets $12,832,231 $13,549,359 $18,012,330 $17,710,796 $30,844,561 $31,260,155
The remaining unrestricted net assets of $10 million (33 %) may be used to meet the Village’s ongoing
obligations to citizens and creditors.
At the end of the current fiscal year, the Village of Tequesta is able to report positive balances in all
categories of net assets, both for the government as a whole, as well as for its separate governmental and
business-type activities. The same situation held true for the prior fiscal year.
The government’s total net assets decreased $416 thousand (1.3%) during the year. This decrease was
primarily the result of decreases in revenue related to declining property values as well as an increase in
expenses related to the building of a new bridge. Specifically, the decision of the Village Council to hold
the millage rate the same as the prior year resulted in revenues from ad valorem taxes declining $530
thousand.
Governmental activities:
Governmental activities decreased the Village of Tequesta’s net assets by
$717 thousand accounting for 173% of the total decrease in net assets of the Village. Key elements of this
decrease are as follows:
Village of Tequesta
Changes in Net Assets
Governmental Business-type
Total
Activities Activities
201020092010200920102009
Revenues:
Program Revenues:
Charges for services $1,308,458 $1,158,443 $4,803,915$4,592,320 $ 6,112,373 $5,750,763
Operating grants & contributions 75,865 67,842
24,354 67,842 51,511--
Capital grants & contributions 100,000 -- ---- 100,000 --
General Revenues:
Ad valorem taxes 4,643,816 5,173,808 ---- 4,643,816 5,173,808
Other taxes 1,315,006 1,285,063 ---- 1,315,006 1,285,063
Franchise fees on gross receipts 435,766 466,541 ---- 435,766 466,541
Unrestricted intergovernmental ----717,673 702,616
717,673 702,616
Unrestricted investment. earnings (loss)
71,0678,725 49,973(9,208) 121,040 (483)
Other miscellaneous 208,754 171,614 40,22942,080 248,983 213,694
Total Revenue $8,824,894 $9,034,652 $4,945,628$4,625,192 13,770,522 $13,659,844
6
Village of Tequesta
Changes in Net Assets (continued)
Governmental Business-type
Total
Activities Activities
201020092010200920102009
Expenses:
General government $ 1,503,750 $ 1,501,344 $ -- $ -- $ 1,503,750 $ 1,501,344
Public safety 6,313,835 5,807,477 -- -- 6,313,835 5,807,477
Transportation 843,960 774,966 -- -- 843,960 774,966
Leisure services ----710,685 639,590
710,685 639,590
Interest on long-term debt ----169,792 180,770
169,792 180,770
Water utility -- -- 3,989,517 3,907,950 3,989,517 3,907,950
Stormwater -- -- 223,421 226,498 223,421 226,498
Refuse & recycling
-- -- 431,156 444,449 431,156 444,449
Total Expenses
9,542,022 8,904,147 4,644,094 4,578,897 14,186,116 13,483,044
Increase (decrease) in net assets ($717,128) $130,505 $301,534 $46,295 (415,594) $176,800
Net assets - beginning 10/01 13,549,359 13,418,854 17,710,796 17,664,501 31,260,155 31,083,355
Net assets - ending 9/30 $12,832,231 $13,549,359 $18,012,330 $17,710,796 $30,844,561 $31,260,155
Property taxes decreased $530 thousand (10.24%) due to decreasing property values and the
Village Council’s decision to keep the current millage rate unchanged.
Overall revenues from other taxes increased $30 thousand (2.33%). The largest increase was
attributable to revenues from electric utility taxes, which increased $44 thousand due mainly to
two unusual events – a January freeze and extremely high temperatures in June and July.
Franchise fees based on gross receipts decreased due to lowered fuel adjustment charges.
suffer investment losses in the
Investment earnings increased $62 thousand as the Village did not
fiscal year ending September 30, 2010 that were reflected in the prior year’s earnings.
Charges for services increased $150 thousand (12.9%) with the majority of this increase due to a
new contract whereby, Palm Beach County Fire Rescue pays the Village of Tequesta $168
thousand annually to supply fire rescue services to unincorporated areas. This increase was
partially offset by a write off of EMS transportation fees of $89 thousand.
Revenue from public safety operating grants and contributions decreased $43 thousand (64%)
primarily as a result of the Village in the prior year received an EMS grant that was not received
in the current year.
Revenue from capital grants and contributions increased $100 thousand and was solely from a
State DEP grant to improve Tequesta Park.
Other miscellaneous revenues increased by $37 thousand primarily as a result of an insurance
recovery in the current year.
Expenses increased $637 thousand primarily as a result of the closing and rebuilding of Tequesta
Bridge and the cost to continue the same level of service to its residents while the Bridge was
closed. Additionally, services offered by leisure services were expanded.
7
The Village’s programs/functions include General Government, Public Safety, Transportation and Leisure
Services. The net cost shows the extent to which the Village’s general revenues support each of the
Village’s programs. The cost of all governmental activities this year was $8.1 million. As shown on the
Statement of Activities, the functions directly benefiting from the programs generated revenue of $1.4
million towards this cost and the remaining $8.1 million was financed through general revenues ($7.4
million) and with the balance ($717 thousand) financed by existing reserves. The use of reserves is not
shown on the chart below.
8
Business-type activities:
The net assets of business-type activities increased $302 thousand (1.7%) from
the prior year. Key elements of this increase are as follows.
Charges for services for business-type activities increased by 4.6%. The Water Fund
recorded an increase in revenue due to record high summer temperatures increasing water
demand by 2.4% and an annual rate increase. This was offset by a small decrease in
revenue from other enterprise activities.
Net assets in the Refuse and Recycling Fund decreased $14 thousand as a result of the
decision by the Village Council to fund a portion of the refuse and recycling operations
with reserves.
The Stormwater Fund recorded an increase in net assets of $89 thousand as revenue
exceeded operating expenses.
Operating income for all business type activities was $443 thousand, an improvement of
$196 thousand over the prior year’s operating income. Although operating expenses in
the nonmajor funds decreased (income remained basically unchanged from the prior
year) the most significant changes in the results in operations overall is attributable to
increased water fees and lower costs to process water (utility and chemical costs were
down from the prior period).
9
Financial Analysis of the Village’s Funds
As noted earlier, the Village of Tequesta uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Governmental funds:
The focus of the Village’s governmental funds is to provide information on near-
term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the
Village’s financing requirements. In particular, unreserved fund balance may serve as a useful measure
of the Village’s net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, The Village of Tequesta’s governmental funds reported combined
ending fund balances of $5,480,841, a decrease of $753,827 (12.1%) from the prior year. Approximately
70% ($3.8 million) of the total amount of fund balance constitutes unreserved, undesignated fund
balance,which is available for spending at the government’s discretion.Additionally, the Village has
designated $1 million of fund balance for Disaster Relief and $251 thousand for subsequent year’s
expenditures.Designations reflect the Village’s self-imposed limitations on the use of otherwise
available current financial resources.In addition, the Village reserved $247 thousand (4.5%) of fund
balance for inventories, encumbrances and prepaid items.
The General Fund is the chief operating fund of the Village. At September 30, 2010, unreserved fund
balance of the General Fund was $3.8 million (this includes designations). As a measure of the General
Fund’s liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total
fund expenditures.Unreserved, undesignated fund balance represents 29% of fiscal year 2010 General
Fund expenditures and total General Fund balance represents 42.9% of the total expenditures. The ratio
of total fund balance to expenditures has decreased from the prior year when unreserved fund balance
represented 38% of total general fund expenditures and total fund balance represented 54% of total
expenditures. This is the second year that these ratios have decreased representing a growing gap between
revenues and expenditures.
10
Total General Fund revenues decreased by $278 thousand (3.1%) compared with the prior year. The most
significant reason for the decrease in revenues is the continued reduction in property values. Increases in
other revenue sources (i.e. charges for services, licenses and permits and investment earnings) were able
to reduce, but not completely offset the effect of the reduction in this major revenue source. Some
specific key factors and how they have affected the Village’s revenues are as follows;
The Village continued to suffer the effect of lower property values which resulted in reduced
proceeds from ad-valorem taxes of $530 thousand.
The Village reviewed and corrected its fee schedule for licenses and permits to better reflect fees
charged by other communities. Revenue from licenses and permits increased ($68 thousand) due
to the implementation of a new permit fee schedule.
Charges for services increased due mainly to a contract with Palm Beach County to provide fire
rescue services to unincorporated areas. This revenue ($168 thousand) was offset by the write-off
of EMS transportation fees of $89 thousand.
Investment earnings increased $62 thousand as interest rates stabilized and the Village did not
experience the losses from investments suffered in the prior year.
Revenue from utility taxes, communication services taxes and other taxes increased only
marginally (2%).
Rents and royalties increased $41 thousand due to rent from a new cell tower lease with AT&T.
The amount of General Fund revenue by type, their percent of the total and the amount of change
compared to last fiscal year are shown in the following schedule:
GENERAL FUND - Revenues
Change
2010% of Total$%2009
GENERAL FUND
Revenues Sources
Taxes
$ 4,643,816 53.2% $(529,992) -10.2% $ 5,173,808
Other taxes
1,315,006 15.1% 29,943 2.3% 1,285,063
Intergovernmental
739,110 8.5% 14,735 2% 724,375
Franchise fees
435,766 5.0% (30,775) -7% 466,541
Charges for services
687,332 7.9% 90,063 15% 597,269
Intragovernmental
307,740 3.5% 14,750 5% 292,990
Licenses and permits
279,835 3.2% 68,464 32% 211,371
Investment earnings
71,067 0.8% 62,342 715% 8,725
Fines and forfeitures
21,721 0.2% (13,156) -38% 34,877
Miscellaneous
61,974 0.7% (25,448) -29% 87,422
Rents and Royalties
161,492 1.9% 40,896 34% 120,596
Total Revenue
$ 8,724,859 100.0% $(278,178) -3.1% $ 9,003,037
11
Expenditures in the General Fund are shown in the following schedule:
Change
General Fund Expenditures by Function
20102009
GENERAL FUND
% of Total $%
Expenditures
General government $1,340,475 14% $(32,683) -6%$1,373,158
Public safety 5,830,734 63% 418,989 71%5,411,745
Transportation 738,323 8% 27,939 5%710,384
Leisure services 554,449 6% (8,265) -1%562,714
Debt service 454,625 5% (4,976) -1%459,601
Capital outlay 352,076 4% 187,850 32% 164,226
Total expenditures $9,270,682 100% $588,854 100%$8,681,828
In fiscal year 2010, total General fund expenditures increased by $588,854 (6.8%) compared to the prior
year.
The largest portion of this increase (71%) was in the public safety function
Overtime in the fire department increased 116%, while overtime in the police department
increased 49% due to the repair, eventual demolition and construction of the new Tequesta
Bridge.
Pension contributions increased almost 100% in public safety due mainly to an increase in
the contribution rates and the increase in overtime.
The general government function, which includes the Village Council and administrative
departments, decreased 6% ($33 thousand) from the prior year.
The major portion of this decrease is due to a reduction in personal services as the human
resources and finance departments reduced staff.
12
Legal fees decreased 28% from the prior year.
The increase in Capital outlay was mainly due to the purchase of a fire rescue vehicle.
Ending total fund balance for the Capital Projects Fund is $268,773 and for the Capital Improvement
Fund is $1,215,184. These funds are designated for capital projects/improvements. These funds receive
revenue from capital grants and transfers in from other funds. During 2010, $273,549 was transferred
into the Capital Improvement Fund ($158,549 from the General Fund and $115,000 from the Capital
Projects Fund) for the Tequesta bridge construction.
Proprietary funds:
The Village’s proprietary funds provide the same type of information found in the
government-wide financial statements, but in more detail.
At the end of the year, total net assets of the proprietary funds were $18,012,330 a 2% increase from the
prior year ($302 thousand). Income from operations increased 6% ($196 thousand) over the prior year
due to an increase in rates as well as increased demand (2.4%).The Water Fund recorded an increase in
revenue attributable to increased demand during a summer that had record setting temperatures and an
annual rate increase. Additionally, a reduction in the cost of utility and chemical costs resulted in lower
than expected costs to run the plant. The non-major funds (the Stormwater Utility and Refuse and
Recycling funds) recorded $73 thousand in operating income up from $58 thousand in the prior year.
Total charges for services for these non-major enterprise funds was mainly unchanged from the prior
period. The Refuse and Recycling Fund showed an operating loss of $17 thousand which resulted from a
budgeted return of excess net assets (in the form of a subsidy) to its customers.
General Fund Budgetary Highlights
The difference between the original and final amended budget for 2010 was an increase in appropriations
of approximately $903,000.Of the increase, $694 thousand was funded primarily from available fund
balance.
Significant differences between the original budgeted expenditures, the final amended budget and/or
actual amounts can be briefly summarized as follows:
Budgeted revenues from “Other Taxes” were increased $209 thousand to budget revenues from
the insurance premium taxes that were recognized but not originally budgeted. In addition, utility
taxes from electric were increased to budget for revenues from higher than usual usage.
Original budgeted expenditures for public safety increased $405 thousand. Significant changes
were
Other pension contributions were increased $209 thousand to recognize and budget the
o
contribution of insurance premium taxes into the public safety pension trust.
Overtime was increased $125 thousand reflecting the additional cost related to the
o
Tequesta Bridge project.
Budgeted expenditures for leisure services increased $26 thousand. The largest change was an
increase of $18 thousand for general maintenance of Paradise Park.
Budgeted expenditures for capital outlay increased $295 thousand. The most significant increase
was due to the purchase of a fire rescue vehicle. In addition, each year’s capital outlay budget is
increased by the unbudgeted roll-forward of prior- year’s encumbrances.
Transfers out were increased by $158 thousand to fund costs associated with the new Tequesta
Bridge.
13
The Village generated a positive variance of approximately $634 thousand between the final adopted
budget and actual results. Actual revenues were approximately $45,000 more than expected. Actual
expenditures were approximately $588 thousand less than expected. In the public safety category,
expenditures were lower than anticipated as the Village originally budgeted to make an additional
contribution to the public safety trust of approximately $300 thousand in the event that a new actuarial
study required that increase. However, the Village did not have to make that contribution.
The final budget anticipated using approximately $1.34 million from available fund balance. However,
the Village only used $704 thousand of available fund balance.
Capital Assets and Debt Administration
Capital assets:
The Village’s capital assets for its governmental and business-type activities total
$30,155,516 (net accumulated depreciation) as of September 30, 2010. These assets include land,
construction in progress, buildings, improvements-other-than-buildings, infrastructure and machinery and
equipment. Although the Village added more capital assets during the year than were deducted, the
Village’s total net capital assets for the current fiscal year decreased $1 million as annual depreciation
was greater than the amount of the additions. The following is a detail of capital assets at September 30,
2010.
Additional information on the Village’s capital assets can be found in Note 6, Capital Assets, starting on
page 43 of this report.
Governmental Business 2010
Capital AssetsActivities Activities2Total
Land $ 402,935 $ 83,335 $ 486,270
Construction in progress 400,040 115,065 515,105
Buildings 8,043,522 979,512 9,023,034
Improvements other than buildings 2,503,853 58,720 2,562,573
Infrastructure 779,438 29,608,204 30,387,642
Machinery & equipment 4,484,237 1,291,311 5,775,548
Total capital assets $ 16,614,025 $ 32,136,147 $ 48,750,172
Less accumulated depreciation (5,508,814) (13,085,842) (18,594,656)
Total capital assets, net $ 11,105,211 $ 19,050,305 $ 30,155,516
Long-term Debt: At the end of the current fiscal year, the Village had no general obligation bonded debt.
All of the Village’s outstanding debt is secured by general revenue sources.
Village of Tequesta - Long Term Debt
Governmental Business-type
Total
Activities Activities
2010 2009 2010 2009 2010 2009
Notes payable
$3,491,028 $3,709,027 $6,405,528 $6,667,662 $9,896,556 $10,376,689
Capital leases
88,613 155,448 88,613 155,448
Deferred loss on refunding
(392,235) (414,702) (392,235) (414,702)
Total Long Term Debt
$3,579,641 $3,864,475 $6,013,293 $6,252,960 $9,592,934 $10,117,435
14
2010
net outstanding debt, decreased by $524 thousand (5.2%).
-term debt can be found in Note 7. Long Term Debt
starting on page 43 of this report.
The Village Council decision to hold the millage rate at5.7671 mills will result in a
reduction in tax revenues as property values continue to decline.
Interest rates remain low which will continue to affect investment earnings.
As pension contributions , the Village is
considering changes to the retirement options it offers new employees.
Revenues from sales taxes continue to be flat and current trends are not predicting any
immediate change unless consumer confidence increases.
The Village is negotiating contracts with the bargaining units that
would include no wage increases for F/Y/E 9/30/2011.
The unemployment rate for the Village of Tequesta at September 30, 2010 is 11.4% up from
9.7%a year ago.
increased 1.7% on October 1, 2010.
All of these factors were considered in preparing the Village o
2010-2011 fiscal year.
Requests for Information
for all those with an interest Questions concerning any of the
information provided in this report or requests for additional financial information should be
addressed to the Village of Tequesta, Finance Department, 345 Tequesta Drive, Tequesta, Florida
33469.
15
Page Intentionally Left Blank
BASIC FINANCIAL STATEMENTS
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2010
Business-
Governmentaltype
ActivitiesActivitiesTotal
Assets
Cash and cash equivalents4,776,243$ 4,947,274$ 9,723,517$
Investments128,026 89,419 217,445
Receivables, net245,252 180,344 425,596
Inventories33,793 21,156 54,949
Prepaid items87,478 32,440 119,918
Other assets748,323 27,342 775,665
Net pension asset459,878 -- 459,878
Capital assets not being depreciated802,975 198,400 1,001,375
Capital being depreciated, net10,302,23618,851,90529,154,141
Total Assets
24,348,28017,584,204 41,932,484
Liabilities
Accounts payable107,704 72,170 179,874
Accrued liabilities187,344 26,098 213,442
Customer deposits-- 19,726 19,726
Due to other governments927 -- 927
Unearned revenue186,961 -- 186,961
Other current liabilities55,338 57,250 112,588
Non-current liabilities
Due within one year280,865 272,910 553,775
Due in more than one year3,932,8345,887,7969,820,630
Total Liabilities
6,335,9504,751,973 11,087,923
Net Assets
Invested in capital assets, net of related debt7,525,570 13,037,012 20,562,582
Unrestricted5,306,6614,975,31810,281,979
Total Net Assets
$ 18,012,33012,832,231$ 30,844,561$
an integral part of these financial statements.
The accompanying notes are
16
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED SEPTEMBER 30, 2010
The accompanying notes are an integral part of these financial statements.
17
Net (Expense) Revenue and
Prop,ram Revenues
Changes in Net Assets
Charges Operating
Capital
Business -
for Grants and
Grants and
Governmental
type
Functions/Programs
Expenses Services Contributions Contributions
Activities
Activities
Total
Governmental Activities
General government
$ 1,503,750 $ 316,816 $ --
$ --
$ (1,186,934)
$ --
$ (1,186,934)
Public safety
6,313,835 899,639 22,804
--
(5,391,392)
--
(5,391,392)
Transportation
843,960 -- --
--
(843,960)
--
(843,960)
Leisure services
710,685 92,003 1,550
100,000
(517,132)
--
(517,132)
Interest on long-term debt
169,792 -- --
--
(169,792)
--
(169,792)
Total Governmental Activities
9,542,022 1,308,458 24,354
100,000
(8,109,210)
--
(8,109,210)
Business -type Activities
Water
3,989,517 4,076,132 51,511
--
--
138,126
138,126
Stormwater utility
223,421 313,126 --
--
--
89,705
89,705
Refuse and recycling
431,156 414,657 --
--
--
(16,499)
(16,499)
Total Business -type Activities
4,644,094 4,803,915 51,511
--
--
211,332
211,332
Total Primary Government
$ 14,186,116 $ 6,112,373 $ 75,865
$ 100,000
(8,109,210)
211,332
(7,897,878)
General Revenues
Ad valorem taxes
4,643,816
--
4,643,816
Utility taxes
629,012
--
629,012
Communication services tax
386,574
--
386,574
Insurance premium taxes
209,245
--
209,245
Business taxes
90,175
--
90,175
Franchise fees based on gross receipts
435,766
--
435,766
Unrestricted intergovernmental
717,673
--
717,673
Unrestricted investment earnings
71,067
49,973
121,040
Miscellaneous revenues
208,754
40,229
248,983
Total general revenues
7,392,082
90,202
7,482,284
Change in Net Assets
(717,128)
301,534
(415,594)
Net Assets - Beginning
13,549,359
17,710,796
31,260,155
Net Assets - Ending
$ 12,832,231
$ 18,012,330
$ 30,844,561
The accompanying notes are an integral part of these financial statements.
17
VILLAGE OF TEQUESTA, FLORIDA
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2010
OtheTota
rl
GovernmentalGovernmental
GeneralFundsFunds
Assets
Cash and cash equivalents4,007,390$ 768,853$ 4,776,243$
Investments --128,026 128,026
Receivables, ne --245,252 245,252
t
Inventories --33,793 33,793
Prepaid items --87,478 87,478
Other assets-- 748,323748,323
Total Assets4,501,9391,517,1766,019,115
Liabilities and Fund Balances
Liabilities
Accounts payable 12,14795,557 107,704
Accrued liabilities --187,344 187,344
Due to other governments --927 927
Unearned revenue --186,961 186,961
Other current liabilities55,338 55,338--
Total Liabilities526,127 538,27412,147
Fund Balances
Reserved for:
Inventories --33,793 33,793
Prepaid items --87,478 87,478
Encumbrances 117,8388,123 125,961
Unreserved, designated for, reported in
General fund:
Disaster relief --1,000,000 1,000,000
Subsequent year's expenditures --134,175 134,175
Special revenue fund:
Subsequent year's expenditures 1,000-- 1,000
Capital projects funds:
Subsequent year's expenditures 250,000-- 250,000
Unreserved, undesignated, reported in
General fund --2,712,243 2,712,243
Special revenue fund 20,072-- 20,072
Capital projects funds--1,116,1191,116,119
Total Fund Balances3,975,8121,505,0295,480,841
Total Liabilities and Fund Balances$4,501,939$1,517,176
Amounts Reported for Governmental Activities in the
Statement of Net Assets are Different Because:
Capital assets used in governmental activities are not financial resources and
therefore, are not reported in the funds11,105,211
Net pension assets are not considered to represent a financial asset in the governmental fund459,878
Long-term liabilities, including notes payable, are not due and payable in the current
period and therefore are not reported in the governmental funds
Note payable(3,491,028)
Capital leases(88,613)
Compensated absences(554,058)
Net OPEB obligation (80,000)
Net Assets of Governmental Activities$12,832,231
an integral part of these financial statements.
The accompanying notes are
18
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2010
OtherTotal
GovernmentalGovernmental
GeneralFundsFunds
Revenues
Ad valorem taxes4,643,816$ --$ 4,643,816$
Other taxes1,315,006 -- 1,315,006
Intergovernmental739,110 100,000 839,110
Franchise fees435,766 -- 435,766
Charges for services687,332 -- 687,332
Intragovernmental307,740 -- 307,740
Licenses and permits279,835 -- 279,835
Investment earnings71,067 -- 71,067
Fines and forfeitures21,721 -- 21,721
Miscellaneous61,974 35 62,009
-- 161,492
Rents and royalties161,492
Total Revenues
100,0358,724,859 8,824,894
Expenditures
Current:
General government1,340,475 1,000 1,341,475
Public safety5,830,734 -- 5,830,734
Transportation738,323 -- 738,323
Leisure services554,449 64,891 619,340
Capital outlay352,076 242,148 594,224
Debt service:
Principal284,833 -- 284,833
Interest159,506 -- 159,506
Fiscal charges10,286 -- 10,286
Total Expenditures
308,0399,270,682 9,578,721
Excess (Deficiency) of Revenues
over Expenditures
(208,004)(545,823) (753,827)
Other Financing Sources (Uses)
Transfers in-- 273,549 273,549
(115,000) (273,549)
Transfers out(158,549)
Total Other Financin Sources (Uses)
g 158,549(158,549) --
Net Change in Fund Balances
(49,455)(704,372) (753,827)
1,554,4844,680,184 6,234,668
Fund Balances
- Beginning
Fund Balances
- Ending
$ 1,505,0293,975,812$ 5,480,841$
The accompanying notes are an integral part of these financial statements.
19
VILLAGE OF TEQUESTA, FLORIDA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED SEPTEMBER 30, 2010
Amounts reported for governmental activities in the statement of activities
are different because:
Net change in fund balances - total governmental funds (Page 19)(753,827)$
Governmental funds report capital outlays as expenditures. However, in the
statement of activities, the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense. This is the
amount by which capital outlays exceeded depreciation in the current period.
The details of the differences are as follows:
Capital outlay594,224$
Depreciation expense(684,385)
Net adjustment(90,161)
The issuance of long-term debt provides current financial resources to
governmental funds, while the repayment of the principal of long-term
debt consumes the current financial resources of governmental funds.
The detail of the differences are as follows:
Principal payments:
Notes payable217,998$
Capital leases66,835
Net adjustment284,833
Some expenses reported in the statement of activities do not require the
use of current financial resources and, therefore, are not reported as
expenditures in governmental funds:
The details of the differences are as follows:
Compensated absences(76,504)
Net OPEB obligation(80,000)
Net pension expenses(1,469)
Change in net assets of governmental activities(717,128)$
an integral part of these financial statements.
The accompanying notes are
20
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2010
Business-type Activities
WaterNonmajor
FundFundsTotals
Assets
Current Assets
Cash and cash equivalents4,272,266$ 675,008$ 4,947,274$
Investments80,189 9,230 89,419
Receivables,, net174,738 5,606 180,344
Inventories20,675 481 21,156
Prepaid items32,167 273 32,440
Other assets27,342 -- 27,342
Total Current Assets
690,5984,607,377 5,297,975
Non-Current Assets
Capital assets not being depreciated198,400 -- 198,400
Capital assets being depreciated, net17,282,924 1,568,981 18,851,905
Total Non-Current Assets
1,568,98117,481,324 19,050,305
Total Assets
2,259,57922,088,701 24,348,280
Liabilities
Current Liabilities
Accounts payable32,594 39,576 72,170
Accrued liabilities26,098 -- 26,098
Customer deposits19,726 -- 19,726
Other current liabilities57,250 -- 57,250
Current maturities of notes payable272,910 -- 272,910
Total Current Liabilities
39,576408,578 448,154
Non-Current Liabilities
Net OPEB obligation9,000 -- 9,000
Compensated absences137,933 480 138,413
Notes payable5,740,383 -- 5,740,383
Total Non-Current Liabilities
4805,887,316 5,887,796
Total Liabilities
40,0566,295,894 6,335,950
Net Assets
Invested in capital assets, net of related debt11,468,031 1,568,981 13,037,012
Unrestricted4,324,776 650,542 4,975,318
Total Net Assets
$ 2,219,52315,792,807$ 18,012,330$
an integral part of these financial statements.
The accompanying notes are
21
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
PROPRIETARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2010
Business-type Activities
WaterNonmajor
FundFundsTotals
Operating Revenues
Charges for services4,076,132$$727,783$4,803,915
Operating Expenses
Cost of sales and services:
Plant production1,304,192 -- 1,304,192
Distribution883,304 -- 883,304
Stormwater 106,458-- 106,458
Purchased services-- 425,006 425,006
Management services291,150 16,590 307,740
Administration312,957 -- 312,957
Depreciation915,061106,5231,021,584
Total Operating Expenses
654,5773,706,664 4,361,241
Operating Income
369,46873,206442,674
Non-Operating Revenues (Expenses)
Connection fees51,511 -- 51,511
Miscellaneous revenue39,437 792 40,229
Investment earnings 44,209 5,764 49,973
Interest expense --(272,699) (272,699)
Other fiscal charges(10,154) (10,154)--
Total Non-Operating Revenues (Expenses)
6,556(147,696) (141,140)
Change in Net Assets
79,762221,772 301,534
15,571,0352,139,76117,710,796
Net Assets
- Beginning
$15,792,807$2,219,523$18,012,330
Net Assets
- Ending
The accompanying notes are an integral part of these financial statements.
22
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2010
Business-type Activities
WaterNonmajor
FundFundsTotals
Cash Flows from Oeratin Activities
pg
Cash received from customers, governments and other funds4,194,272$ 729,888$ 4,924,160$
Cash paid to suppliers(1,646,853) (517,907) (2,164,760)
Cash paid to employees(1,325,619) (44,143) (1,369,762)
Other cash received39,437 40,229792
Net Cash Provided by Operating Activities
168,6301,261,237 1,429,867
Cash Flows from Capital and Related Financing Activities
Acquisition and construction of capital assets(50,022) (54,582) (104,604)
Proceeds from connection fees51,511 -- 51,511
Principal payments on long-term debt(262,934) -- (262,934)
Interest and fiscal charges paid(258,819) (258,819)--
Net Cash Used in Capital and Related Financing Activities
(520,264) (54,582) (574,846)
Cash Flows from Investin Activities
g
Sales of investments25,733 290,910 316,643
Interest received on investments44,209 49,9735,764
Net Cash Provided b Investin Activities
yg69,942 366,616296,674
Net Increase in Cash and Cash Equivalents
410,722810,915 1,221,637
3,461,351 3,725,637264,286
Cash and Cash Equivalents
- Beginning
$ 4,947,274675,008$
$4,272,266
Cash and Cash Equivalents
- Ending
Adustments to Reconcile Oeratin Income to Net
jpg
Cash Provided b Oeratin Activities
ypg
Operating income369,468$ 73,206$ 442,674$
Depreciation 915,061 106,523 1,021,584
Miscellaneous non-operating revenue39,437 792 40,229
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable118,140 2,105 120,245
Inventories2,032 680 2,712
Prepaid items(7,965) 12 (7,953)
Increase (decrease) in:
Accounts payable(204,782) (13,032) (217,814)
Accrued liabilities (1,221) -- (1,221)
Customer deposits(3,870) -- (3,870)
Net OPEB obligation 9,000 -- 9,000
Compensated absences25,937(1,656) 24,281
Net Cash Provided b Oeratin Activities
ypg$1,261,237$ 1,429,867168,630$
Noncash Investing Activities
$ 32,4633,266$
Change in fair value of investments29,197$
an integral part of these financial statements.
The accompanying notes are
23
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2010
Pension
Trust
Funds
Assets
Cash and cash equivalents228,016$
Investments, at fair value:
Corporate stocks3,623,380
Corporate bonds1,033,982
Government backed assets2,032,205
Mutual funds696,638
Prepaid items3,465
Contributions receivable83,898
Accrued interest receivable25,806
Total Assets
7,727,390
Liabilities
Accounts payable22,981
Due to broker33,604
Total Liabilities
56,585
Net Assets Held in Trust for Pension Benefits
$7,670,805
The accompanying notes are an integral part of these financial statements.
24
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2010
Pension
Trust
Funds
Additions
Contributions:
Employer$530,146
Employee204,898
State209,245
Total contributions944,289
Investment income
Net appreciation in fair value of investments731,000
Investment earnings146,116
877,116
Less investment expenses(69,884)
Net investment income807,232
Total Additions
1,751,521
Deductions
Refunds of contributions16,639
Operating expenses65,149
Total Deductions
81,788
Net Increase
1,669,733
Net Assets Held in Trust for Pension Benefits
Net assets - beginning6,001,072
Net assets - ending$7,670,805
The accompanying notes are an integral part of these financial statements.
25
NOTES TO BASIC FINANCIAL STATEMENTS
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N1–SSAP
OTEUMMARY OF IGNIFICANT CCOUNTING OLICIES
The Village of Tequesta, Florida is a municipal corporation organized in 1957 pursuant to
Special Act 57-1915, Laws of Florida. The Village has a Council-Manager form of
government. The Village’s major operations include public safety (police, fire
rescue/EMS), streets and roads, culture and recreation, public improvements, planning and
zoning, water, stormwater, recycling services and general and administrative. The financial
statements of the Village have been prepared in conformity with accounting principles
generally accepted in the United States (GAAP) as applied to governmental units. The
Governmental Accounting Standards Board (GASB) is the accepted standard-setting body
for establishing governmental and financial reporting principles. The more significant of
the Village’s accounting policies are described below:
The financial statements were prepared in accordance with governmental accounting
standards, which establishes standards for defining and reporting on the financial reporting
entity. The definition of the financial reporting entity is based upon the concept that elected
officials are accountable to their constituents for their actions. One of the objectives of
financial reporting is to provide users of financial statements with a basis for assessing the
accountability of the elected officials. The financial reporting entity consists of the Village,
organizations for which the Village is financially accountable and other organizations for
which the nature and significance of their relationship with the Village are such that
exclusion would cause the reporting entity’s financial statements to be misleading or
incomplete. The Village is financially accountable for a component unit if it appoints a
voting majority of the organization’s governing board and it is able to impose its will on
that organization or there is a potential for the organization to provide specific financial
benefits to, or impose specific financial burdens on, the Village. The Village has no
component units to report for the fiscal year ending September 30, 2010.
The government-wide financial statements distinguish between the governmental and
business-type activities of the Village. Governmental activities are those supported by
taxes and intergovernmental revenues. Business-type activities rely to a significant extent
on fees and charges for support.
Government-wide financial statements include a Statement of Net Assets and a Statement
of Activities. These statements report on the government as a whole and provide a
consolidated financial picture of the government. Fiduciary funds (the Village’s pension
trust funds) are excluded from this presentation as the assets are held for the benefit of a
third party (members and beneficiaries) and cannot be used to address activities or
obligations of the Village.
26
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N1–SSAP()
OTEUMMARY OF IGNIFICANT CCOUNTING OLICIES CONTINUED
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are
clearly identifiable with a specific function or segment. Program revenues include 1)
charges to customers or applicants who purchase, use, or directly benefit from goods,
services, or privileges provided by a given function or segment and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements. All remaining nonmajor
governmental funds or proprietary funds are aggregated and reported as other governmental
or nonmajor funds.
Since the governmental fund financial statements are presented on a different measurement
focus and basis of accounting than the government-wide statements, a reconciliation is
provided which briefly explains the adjustments necessary to reconcile the results of
governmental fund accounting to the government-wide presentations.
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and
fiduciary fund financial statements. Revenues are recorded when earned and expenses are
recorded when a liability is incurred, regardless of the timing of related cash flows.
Property taxes are recognized as revenues in the year for which they are levied. Grants and
similar items are recognized as revenue as soon as all eligibility requirements imposed by
the provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized
as soon as they are both measurable and available. Revenues are considered to be available
when they are collectible within the current period or soon enough thereafter to pay
liabilities of the current period. For this purpose, the Village considers revenues to be
available if they are collected within 45 days after the end of the current fiscal period.
Expenditures are recorded when the related fund liability is incurred, except for principal
and interest on long-term debt and compensated absences which are recognized as
expenditures when payment is due.
27
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N1–SSAP()
OTEUMMARY OF IGNIFICANT CCOUNTING OLICIES CONTINUED
Property taxes, sales taxes, franchise taxes, grant revenues and investment earnings
associated with the current fiscal period are all considered to be susceptible to accrual and
so have been recognized as revenues of the current fiscal period.. All other revenues are
considered measurable and available only when cash is received by the Village.
The Village reports the following major governmental fund:
TheGeneral Fund is the Village’s primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another
fund.
The Village reports the following major proprietary funds:
The Water Fund is used to account for the activities of the water utility, which includes
the processing and distribution of potable water to Village residents and some
surrounding communities.
Additionally, the Village reports the following fiduciary funds:
Thepension trust funds account for the activities of the Firefighters’ Pension Trust Fund,
the Police Officers’ Pension Trust Fund and the General Employees’ Pension Trust Fund.
These funds accumulate resources for pension benefits to qualified employees.
Private-sector standards of accounting and financial reporting issued prior to December 1,
1989, generally are followed in both the government-wide and proprietary fund financial
statements to the extent that those standards do not conflict with or contradict guidance of
the Governmental Accounting Standards Board. The Village has the option of following
subsequent private-sector guidance for their business-type activities and enterprise funds,
subject to this same limitation. The Village has elected not to follow subsequent private-
sector guidance.
As a general rule, the effect of interfund activity has been eliminated from the government-
wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and
other charges between the Village utility functions and various other functions of the
Village. Elimination of these charges would distort the direct costs and program revenues
reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for
goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital
grants and contributions. Internally dedicated resources are reported as general revenues
rather than as program revenues. Likewise, general revenues include all taxes.
28
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N1–SSAP()
OTEUMMARY OF IGNIFICANT CCOUNTING OLICIES CONTINUED
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing
and delivering goods in connection with a proprietary fund’s principal ongoing operations.
The principal operating revenues of the Village’s water utility, stormwater utility and refuse
and recycling funds are charges to customers for services. Operating expenses for
proprietary funds include the costs of services, administrative expenses, and depreciation on
capital assets. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the Village’s
policy to use restricted resources first, then unrestricted resources as they are needed.
1. Deposits and Investments
The Village’s cash and cash equivalents are considered to be cash on hand, demand and
time deposits and short-term investments with original maturities of three months or less
from the date of acquisition. State statutes authorize the Village to invest in obligations
of the U.S. Treasury, its agencies and instrumentalities, commercial paper, corporate
bonds, repurchase agreements, the State Board Investment Pool and the Florida
Municipal Investment Trust.
The Village maintains a cash and investment pool that is available for use by all funds
with the exception of the Water Utility which has separate accounts with the State Board
of Administration (SBA). Pooled cash is classified as “Cash and Cash Equivalents” in
the Statement of Net Assets and pooled investments are combined with other separate
investments and classified as “Investments.” Interest income earned as a result of
pooling is distributed to the appropriate funds based on the month end equity balance in
each fund.
All investments, except the State Board Investment Pool, are reported at fair value, which
is based on quoted market prices. The Investment Pool is segregated into the Florida
PRIME which is recorded at its value of the pool shares (2a7-like fund) which is fair value
and Fund B which is accounted for as a fluctuating NAV pool and is reported based on the
fair value factor.
2. Receivables and Payables
Activities between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as “due to/from other funds”. Any
residual balances outstanding between the governmental activities and business-type
activities are reported in the government-wide financial statements as “internal balances.”
29
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N1–SSAP()
OTEUMMARY OF IGNIFICANT CCOUNTING OLICIES CONTINUED
2. Receivables and Payables (continued)
All trade and other receivables are shown net of an allowance for uncollectibles.
Allowances for uncollectible receivables are based upon historical trends and the
periodic aging of receivables.
Water charges to customers are based on actual water consumption. Consumption is
based upon a monthly cycle. The Village recognizes revenue and a related receivable for
th
unbilled consumption as of September 30 of each year.
3. Inventories
Inventories of the general fund are valued at cost on a first-in, first-out (FIFO) method.
Inventories consist of expendable supplies held for consumption. The cost is recorded
as an expenditure when the individual inventory items are purchased.
Inventories of the Water Fund are valued at lower of cost (determined using the weighted
average) or market and consist of pipes, valves, fittings and meters. The cost is recorded
as an expense when the individual inventory items are put into service.
4. Capital Assets
Capital assets, which include property, plant and equipment, and certain infrastructure
assets (e.g., utility plant, roads, bridges, sidewalks, and similar items), are reported in the
applicable governmental or business-type activities columns in the government-wide
financial statements. In the case of the initial capitalization of general infrastructure assets
(i.e., those reported by governmental activities) the Village chose to include all such items
regardless of their acquisition date. Capital assets are defined by the Village as assets with
an initial, individual cost of more than $1,000 and an estimated useful life in excess of one
year and $25,000 for intangibles with an estimated useful life in excess of one year.
Purchased or constructed assets are recorded at actual cost or estimated historical cost if
actual cost is unavailable. Donated capital assets are recorded at estimated fair market
value at the date of donation.
During the year ended September 30, 2010, the Village implemented GASB Statement
No. 51, “Accounting and Financial Reporting for Intangible Assets.” There was no
impact on the Village’s financial statement.
30
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N1–SSAP()
OTEUMMARY OF IGNIFICANT CCOUNTING OLICIES CONTINUED
4. Capital Assets (continued)
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend the asset’s life are not capitalized. Major outlays for capital assets and
improvements are capitalized as projects are constructed. Interest incurred during the
construction phase of capital assets of business-type activities is included as part of the
capitalized value of the asset constructed. There was no interest to be capitalized in
fiscal year 2010.
Capital assets of the Village are depreciated using the straight line method over the
following estimated useful lives:
Buildings 20 –40 years
Improvements other than buildings20 –50 years
Infrastructure 20 –50 years
Machinery and equipment 2 –15 years
5. Compensated Absences
It is the Village’s policy to permit employees to accumulate within certain limits, earned
but unused vacation time, sick leave and compensatory time which will be paid to
employees upon separation from Village service. All vacation, sick leave pay and
compensatory time is accrued when incurred in the government-wide and proprietary
fund financial statements. In the governmental funds, a liability is recorded only for
unused vacation and sick leave payouts for employees who have separated, for example,
as a result of employee resignations and retirements.
6. Long-Term Obligations
In the government-wide financial statements, and proprietary fund types in the fund
financial statements, long-term debt and other long-term obligations are reported as
liabilities in the applicable governmental activities, business-type activities, or
proprietary fund type statement of net assets. Bond premiums and discounts, as well as
issuance costs and refunding gains/losses, are deferred and amortized over the life of the
bonds using the straight-line amortization method. Bonds payable are reported net of
the applicable bond premium or discount and refunding gains/losses.
31
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N1–SSAP()
OTEUMMARY OF IGNIFICANT CCOUNTING OLICIES CONTINUED
6. Long-Term Obligations (continued)
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of
debt issued is reported as other financing sources. Premiums received on debt issuances
are reported as other financing sources while discounts on debt issuances are reported as
other financing uses. Issuance costs, whether or not withheld from the actual debt
proceeds received, are reported as debt service expenditures.
7. Use of Estimates
The financial statements and related disclosures are prepared in conformity with
accounting principles generally accepted in the United States of America. Management
is required to make estimates and assumptions that affect the reported amounts of assets
and liabilities, the disclosure of contingent assets and liabilities at the date of the
financial statements. Estimates also affect the reported amount of revenue and
expenditures/expenses during the period reported. These estimates include assessing
collectability of accounts receivable, pension obligations, and useful lives and
impairment of tangible assets, among others. Estimates and assumptions are reviewed
periodically and the effects of revisions are reflected in the financial statements in the
period they are determined to be necessary. Actual results may differ from those
estimates.
8. Net Assets
Net assets of the government-wide and proprietary funds are categorized as invested in
capital assets, net of related debt; restricted or unrestricted. Invested in capital assets,
net of related debt, is that portion of net assets that relates to the Village’s capital assets
reduced by accumulated depreciation and by any outstanding debt incurred to acquire,
construct or improve those assets, excluding unexpended proceeds.
Restricted net assets is that portion of net assets that has been restricted for general use
by external parties (creditors, grantors, contributors, or laws or regulations of other
governments) or imposed by law through constitutional provisions or enabling
legislation. Unrestricted net assets consist of all net assets that do not meet the
definition of either of the other two components.
32
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N1–SSAP()
OTEUMMARY OF IGNIFICANT CCOUNTING OLICIES CONTINUED
9. Fund Equity
In the fund financial statements, governmental funds report reservations of fund balance
for amounts that are not available for appropriation or are legally restricted by outside
parties for use for a specific purpose. Designations of fund balance represent tentative
management plans that are subject to change.
N2–PT
OTEROPERTY AXES
st
Ad valorem taxes are assessed as of January 1 and billed the following October. They are
st
due and payable on November 1 of each year or as soon thereafter as the assessment roll is
certified and delivered to the Tax Collector. Taxes are collected by the County and
remitted to the Village. Revenue is recognized at the time monies are received from the
st
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
th
taxes paid in March do not have a discount. At September 30, unpaid delinquent taxes, if
any, are reflected as a receivable on the balance sheet. There were no material delinquent
property taxes at September 30, 2010.
Assessed values are established by the Palm Beach County Property Appraiser at
approximately fair market value. The assessed value for operating purposes of property at
January 1, 2009, upon which the 2009-2010 levy was based, was $833,906,426.
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, 2010 was 5.7671 mills per
$1,000 of assessed valuation.
33
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N3–DI
OTEEPOSITS AND NVESTMENTS
All of the Village’s deposits are held in qualified public depositories pursuant to State of
Florida Statutes, Chapter 280, Florida Security for Public Deposits Act. Under the Act,
every qualified public depository shall deposit with the Treasurer eligible collateral of the
depository to be held subject to his or her order. The Treasurer, by rule, shall determine the
collateral requirements and collateral pledging level for each qualified public depository.
The pledging level may range from 25% to 125% of the average monthly balance of public
deposits depending upon the depository’s financial condition and establishment period. All
collateral must be deposited with an approved financial institution. Any potential losses to
public depositors are covered by applicable deposit insurance, sale of securities pledged as
collateral and, if necessary, assessments against other qualified public depositories of the
same type as the depository in default. At September 30, 2010, none of the Village’s
primary bank balances were exposed to custodial credit risk.
The Village has adopted an investment policy in accordance with Florida Statutes to
establish guidelines for the efficient management of its cash reserves. The Village is
authorized to invest in obligations of the U.S. Treasury, its agencies and instrumentalities,
certificates of deposit, the State Board of Administration Investment Pool, any
intergovernmental investment pools authorized pursuant to Chapter 163 of the Florida
Statutes, SEC registered money market funds with the highest credit quality rating from a
nationally recognized rating agency, and securities of any interest in any open-end or
closed-end management type investment company or investment trust registered under the
Investment Company Act of 1940, provided that the portfolio is limited to obligations of
the U.S. government, its agencies and instrumentalities and to repurchase agreements fully
collateralized by such U.S. government obligations and provided that such investment
company or investment trust takes delivery of such collateral either directly or through an
authorized custodian.
The State Board of Administration (SBA) administers the Florida PRIME (formerly known
as the Local Government Surplus Funds Trust Fund (LGIP) and the Fund B Surplus Funds
Trust Fund (Fund B), both of which are governed by Chapter 19-7 of the Florida
Administrative Code and Chapters 218 and 215 of the Florida Statutes. These rules provide
guidance and establish the policies and general operating procedures for the administration
of the Florida PRIME and Fund B. The Florida PRIME is not a registrant with the
Securities and Exchange Commission (SEC); however, the Board has adopted operating
procedures consistent with the requirements for a 2a-7-like fund, which permits money
market funds to use amortized cost to maintain a constant net asset value (NAV) of $1 per
share.
34
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N3–DI()
OTEEPOSITS AND NVESTMENTS CONTINUED
The fair value of the position in the Florida PRIME is equal to the value of the pool shares.
Fund B does not meet the requirement of an SEC a-7-like fund and therefore is accounted
for as a fluctuating NAV pool. As of September 30, 2010, the fair value factor for Fund B
was $.70706 per share. Fund B is not subject to participant withdrawal requests.
Distributions from Fund B, as determined by the SBA, are effected by transferring eligible
cash or securities to the Florida PRIME, consistent with the pro rata allocation of pool
shareholders of record at the creation of Fund B. One hundred percent of such distributions
from Fund B are available as a liquid balance within the Florida PRIME. The investments
in the Florida PRIME and Fund B are not insured by FDIC or any other governmental
agency.
At September 30, 2010, the Village of Tequesta had the following deposits and investments:
Weighted
Deposits andAverageCredit Percent
InvestmentsFair ValueMaturityRatingDistribution
Demand deposits9,723,517$97.81%
SBA-Florida PRIME24,100 52 daysAAAm S&P0.24%
7.49 yearsNot rated1.94%
SBA - Fund B193,255
Total Investments217,355
Total Deposits and Investments
$ 100.00%9,940,872
IRR
NTEREST ATE ISK
Interest rate risk exists when there is a possibility that changes in interest rates could
adversely affect an investment’s fair value. Generally, the longer the time to maturity, the
greater the exposure to interest rate risk. The Village’s investment policy disallows the
purchase of securities that have a maturity of greater than five years. In addition, on any
given date, at least 80% of the portfolio shall mature within one year.
CR
REDITISK
Credit risk is the risk that a debt issuer will not fulfill its obligations. The investment policy
limits credit risk by requiring that investments be limited to investments in specific
securities and that short-term obligations of U.S. corporations are rated at the time of
purchase at one of the three highest classifications established by a nationally recognized
statistical rating organizations.
35
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N3–DI()
OTEEPOSITS AND NVESTMENTS CONTINUED
CCR
ONCENTRATION OF REDITISK
The Village’s investment policy states that assets shall be diversified to control the risk of
loss resulting from concentration of assets to a specific maturity, instrument, issue, dealer,
or bank through which these securities are bought and sold. As of September 30, 2010, the
value of each position held in the Village’s portfolio is less than 5% in any one issuer.
At September 30, 2010, the General Employees’ Pension Trust Fund had the following
deposits and investments:
Weighted
AverageCredit Percent
Fair ValueMaturityRatingDistribution
Cash100$ 0.01%
Money market49,834 3.12%
Corporate bonds:3.27 years
Bonds52,527 A13.29%
Bonds114,563 A27.18%
Bonds27,599 A31.73%
Bonds27,187 Baa11.70%
Bonds79,166 Baa34.96%
U.S. agencies71,890 .32 yearsAaa6.08%
U.S. treasuries209,001 1.50 years13.10%
Mutual funds94,091 5.90%
Corporate stocks844,833 52.93%
Total
$ 100.00%1,570,791
IRR
NTEREST ATE ISK
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value
of an investment in debt securities. Generally, the longer the time to maturity, the greater
the exposure to interest rate risk. The established performance objectives require
investment maturities to provide sufficient liquidity to pay obligations as they become due.
The Plan does not have a formal policy relating to interest rate risk. At September 30,
2010, the weighted average maturity in years for each investment type is included in the
preceding table.
36
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N3–DI()
OTEEPOSITS AND NVESTMENTS CONTINUED
CR
REDITISK
Credit risk is the risk that a debt issuer will not fulfill its obligations. The investment policy
limits credit risk by requiring that investments made or held in the fund shall be limited to:
Obligations issued by the U.S. Government or obligations guaranteed as to principal
and interest by the U.S. government or by an agency of the U.S. Government;
Bonds, stocks, or commingled funds administered by national or state banks, or other
evidences or indebtedness, issued or guaranteed by a corporation organized under the
laws of the United States, any state or organized territory of the United States, or
District of Columbia provided that the securities meet the following ranking criteria:
Fixed Income: Holds a rating in one of the four highest classifications by a
major rating service
Equities: Traded on a National Exchange
Money Market: The money market fund or STIF provided by the Plan’s
custodian.
At September 30, 2010, the investments of the General Employees’ Pension Trust Fund
were in compliance with the policies.
CCR
ONCENTRATION OF REDITISK
Concentration of credit risk is defined as the risk of loss attributed to the magnitude of an
investment in a single issuer. The Plan utilizes limitations on securities of a single issuer to
manage this risk. The Plan’s investment policy limits investments in common stock or
capital stock of any one issuing company or aggregate of any one issuing company to 5% of
the outstanding capital stock of the company. The investment policy requires that the value
of bonds issued by any single corporation shall not exceed 10% of the total fund.
Investments in corporate common stock and convertible bonds shall not exceed 70% of the
fund assets at market value. Foreign securities shall not exceed 25% of the market value of
the fund. If the Plan owns investments at the end of a calendar quarter which no longer
satisfy the applicable investment standard, then such investment is disposed of at the
earliest economically feasible opportunity.
37
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N3–DI()
OTEEPOSITS AND NVESTMENTS CONTINUED
CCR
USTODIAL REDITISK
Custodial credit risk is defined as the risk that the Plan may not recover cash and
investments held by another party in the event of a financial failure. The Plan requires all
securities to be held by a third party custodian in the name of the Plan. Securities
transactions between a broker-dealer and the custodian involving purchase or sale of
securities by the transfer of money or securities must be made on a “delivery vs. payment”
basis to ensure that the custodian will have the security or money in hand at the conclusion
of the transaction.
FCR
OREIGN URRENCY ISK
Foreign currency risk is the risk that changes in exchange rates will adversely affect the fair
value of an investment. The investment policy permits a maximum of 25% of the market
value of the fund securities to be invested in foreign securities. At September 30, 2010,
approximately 16% of the market value of the fund was invested in foreign securities,
which met the limitations of the policy.
At September 30, 2010, the Police and Firefighters’ Pension Trust Fund had the following
deposits and investments:
Weighted
AverageCredit Percent
Fair ValueMaturityRatingDistribution
Cash583$ 0.01%
Money market177,499 2.95%
Corporate bonds:5.73 years
Bonds64,530 Aaa1.07%
Bonds27,052 Baa10.45%
Bonds25,949 0.43%
Bonds84,288 A21.40%
Bonds72,494 A31.20%
Bonds12,971 AA20.22%
Bonds40,207 Aa30.67%
Bonds117,697 Baa11.96%
Bonds135,521 Baa22.25%
Bonds152,233 Baa32.53%
U.S. agencies766,226 .38 yearsAaa12.73%
U.S. treasuries959,992 6.23 years15.95%
Mutual funds602,547 10.01%
Corporate stocks2,778,497 46.17%
Total
100.00%
$6,018,286
38
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N3–DI()
OTEEPOSITS AND NVESTMENTS CONTINUED
IRR
NTEREST ATE ISK
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value
of an investment in debt securities. Generally, the longer the time to maturity, the greater
the exposure to interest rate risk. The established performance objectives require
investment maturities to provide sufficient liquidity to pay obligations as they become due.
The Plan does not have a formal policy relating to interest rate risk. At September 30,
2010, the weighted average maturity in years for each investment type is included in the
preceding table.
CR
REDITISK
Credit risk is the risk that a debt issuer will not fulfill its obligations. The investment policy
limits credit risk by requiring that:
Fixed income investments must hold a rating in one of the four highest classifications
by a major rating service.
Equities must be traded on a national exchange.
Money market investments must hold a minimum rating of Standard & Poor’s A1 or
Moody’s P1.
At September 30, 2010, the investments of the Police and Firefighters’ Pension Trust Fund
were in compliance with the policies.
CCR
ONCENTRATION OF REDITISK
Concentration of credit risk is defined as the risk of loss attributed to the magnitude of an
investment in a single issuer. The Plan utilizes limitations on securities of a single issuer to
manage this risk. The Plan’s investment policy limits investments in common stock, capital
stock or convertible stock of any one issuing company or aggregate of any one issuing
company to 5% of the outstanding capital stock of the company. The investment policy
requires that the value of corporate bonds issued by any single corporation cannot represent
more than 5% of the total fund. Investments in corporate common stock and convertible
bonds shall not exceed 70% of the fund assets at market value. Mortgage-backed securities
issued by non-government entities are limited to 15% of the fixed income portfolio.
Foreign securities shall not exceed 15% of the value at cost of the fund. If the Plan owns
investments that complied with the limitations at the time of purchase, which subsequently
exceed these limits or do not satisfy the applicable standards, the non-compliant investment
may be held until it is economically feasible to dispose of the investment.
39
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N3–DI()
OTEEPOSITS AND NVESTMENTS CONTINUED
CCR
USTODIAL REDITISK
Custodial credit risk is identified as the risk that the Plan may not recover cash and
investments held by another party in the event of a financial failure. The Plan requires all
securities to be held by a third party custodian in the name of the Plan. Securities
transactions between a broker-dealer and the custodian involving purchase or sale of
securities by the transfer of money or securities must be made on a “delivery vs. payment”
basis to ensure that the custodian will have the security or money in hand at the conclusion
of the transaction.
FCR
OREIGN URRENCY ISK
Foreign currency risk is the risk that changes in exchange rates will adversely affect the fair
value of an investment. The investment policy permits a maximum of 15% of the market
value of the fund to be invested in foreign securities. At September 30, 2010,
approximately 14% of the market value of the fund was invested in foreign securities,
which met the limitations of the policy.
RU–PP
ISKS AND NCERTAINTIES ENSIONLANS
The Plans invest in various investment securities. Investment securities are exposed to
various risks such as interest rate, market and credit risks. Due to the level of risk
associated with certain investment securities, it is at least reasonably possible that changes
in the values of investment securities will occur in the near term and, that such changes
could materially affect the amounts reported in the statement of plan net assets for each
Plan. The Plans, through their investment advisors, monitor Plan investments and the risks
associated therewith on a regular basis which each Plan believes minimizes these risks.
Contributions to the Plans are made and the actuarial present value of accumulated plan
benefits are reported based on certain assumptions pertaining to interest rates, inflation rates
and employee demographics, all of which are subject to change. Due to uncertainties
inherent in the estimations and assumptions process, it is at least reasonably possible that
changes in these estimates and assumptions in the near term would be material to the
financial statements.
40
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N4-R
OTEECEIVABLES
Receivables at September 30, 2010 for the government’s individual major funds, non-major
and fiduciary funds in the aggregate, including the applicable allowance for uncollectible
accounts, are as follows:
Nonmajor
and Other
GeneralWaterFundsTotal
Customers billed
$ 17778,211$ 513,452$ 256$,176
--
Other taxes
42,738 42--,738
Miscellaneous
1656,260 6,425
Employees
--1,849 -- 1,849
Intergovernmental
-91,280 5 96,093,373
-- -- 42,194
Franchise fees42,194
Gross receivables262,532 177,617 5,606 445,755
Less allowance for uncollectibles(17,280) (2,879) -- (20,159)
Net Total Receivables
$ 174,738245,252$ 5,606$ 425,596$
Governmental funds report deferred revenue in connection with receivables for revenues
that are not considered to be available to liquidate liabilities of the current period.
Governmental funds also defer revenue recognition in connection with resources that have
been received, but not yet earned.
At the end of the current fiscal year, various components of unearned revenue reported in
the governmental funds were as follows:
GF
ENERAL UND
Prepaid cell tower leases115,045$
Prepaid business taxes54,704
Prepaid licenses and registrations not yet due17,212
Total
$186,961
41
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N5–IT
OTENTERFUNDRANSFERS
Interfund transfers during the year ended September 30, 2010 were as follows:
Transfers In
Nonmajor
General Governmental
dFundsTotal
Transfers OutFun
General fund$ 158,549--$ 158,549$
Nonmajor governmental funds--115,000115,000
Total
$ 273,549--$ 273,549$
Transfers are used to (1) move excess revenues from the special revenue funds as required
by bond covenants, (2) move unrestricted general fund revenues to finance various
programs that the Village must account for in other funds in accordance with budgetary
authorizations, including amounts provided as subsidies or matching funds for various grant
programs.
IAF
NTERFUND DMINISTRATIVE EE
During the year ended September 30, 2010, the Enterprise Funds remitted $307,740 to the
General Fund for Administrative Management fees. This amount is reflected as Intra-
governmental Services revenue in the General Fund and as management fees, an operating
expense, in the Enterprise Funds.
42
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N6–CA
OTEAPITALSSETS
Capital asset activity for the year ended September 30, 2010 was as follows:
BeginningEnding
BalanceAdditionsDeductionsBalance
Governmental Activities
Capital assets not being depreciated:
Land402,935$ --$ --$ 402,935$
Construction-in-progress421,994 -- 400,040(21,954)
Total Capital Assets Not Being Depreciated -- (21,954) 802,975
824,929
Capital assets being depreciated:
Buildings8,043,522 -- -- 8,043,522
Improvements other than buildings2,369,076 134,777 -- 2,503,853
Infrastructure695,085 84,353 -- 779,438
Machinery and equipment4,087,189 397,048 4,484,237--
Total Capital Assets Being Depreciated
616,17815,194,872 -- 15,811,050
Less accumulated depreciation for:
Buildings(1,117,562) (201,091) -- (1,318,653)
Improvements other than buildings(562,456) (118,377) -- (680,833)
Infrastructure(85,751) (29,491) -- (115,242)
Machinery and equipment(3,058,660) (335,426) (3,394,086)--
Total Accumulated Depreciation
(684,385)(4,824,429) -- (5,508,814)
Total Capital Assets Being Depreciated
(68,207)10,370,443 -- 10,302,236
Governmental Activities Capital Assets, Net
$ (68,207)11,195,372$ (21,954)$ 11,105,211$
Business-Type Activities
Capital assets not being depreciated:
Land83,335$ --$ --$ 83,335$
Construction-in-progress97,875 17,190 115,065--
Total Capital Assets Not Being Depreciated
17,190181,210 -- 198,400
Capital assets being depreciated:
Buildings979,512 -- -- 979,512
Improvements other than buildings58,720 -- -- 58,720
Infrastructure29,548,372 59,832 -- 29,608,204
Machinery and equipment1,263,729 27,582 -- 1,291,311
Total capital assets being depreciated31,850,333 87,414 31,937,747--
Less accumulated depreciation for:
Buildings(528,580) (20,429) -- (549,009)
Improvements other than buildings(5,872) (2,349) -- (8,221)
Infrastructure(10,650,326) (912,480) -- (11,562,806)
Machinery and equipment(879,480) (86,326) -- (965,806)
Total Accumulated Depreciation (1,021,584) -- (13,085,842)
(12,064,258)
Total Capital Assets Being Depreciated, Net (934,170) -- 18,851,905
19,786,075
Business-Type Activities Capital Assets, Net
$ (916,980)19,967,285$ --$ 19,050,305$
43
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N6–CA()
OTEAPITALSSETS CONTINUED
Depreciation expense was charged to functions/programs of the Village as follows:
Governmental Activities:
General government147,272$
Public safety359,815
Transportation91,793
Leisure services85,505
Total Depreciation Expense - Governmental Activities
$ 684,385
pe Activities:
Business-T
y
Water915,061$
Nonmajor funds106,523
Total Depreciation Expense - Business-Type Activities
$1,021,584
N7–L-TD
OTEONGERMEBT
GA
OVERNMENTAL CTIVITIES
Note Payable
On September 13, 2002, the Village signed a $5,000,000 promissory note with the Bank of
America, with an interest rate of 4.28%, payable monthly in arrears and maturing September
13, 2022. Proceeds from the note were 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.
Debt service requirements to maturity are as follows:
For The Year Ending
September 30,PrincipalInterestTotal
2011227,514$ 144,985$ 372,499$
2012237,445 135,056 372,501
2013247,809 124,692 372,501
2014258,626 113,875 372,501
2015269,915 102,586 372,501
2016-20201,536,930 325,578 1,862,508
2021-2022712,78932,212745,001
Total
$ 978,9843,491,028$ 4,470,012$
44
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N7–L-TD()
OTEONGERMEBT CONTINUED
Capital Leases
The Village entered into a capital lease with Bank of America in the amount of $397,922 on
February 13, 2003 for the financing of a fire pumper. The applicable interest rate is 3.61%
th
with principal and interest payments totaling $46,720 due annually on April 15. The lease
was assigned to SunTrust on February 13, 2003 and matures April 15, 2012.
The following is a schedule of the future minimum lease payments under this capital lease
arrangement at September 30, 2010:
Fiscal Year Ending September 30,Amount
201146,720$
201246,720
Total minimum lease payments93,440
Less amount representing interest(4,827)
Present Value of Future Minimum Lease Payments
$88,613
The assets acquired through capital leases are as follows:
Machinery and equipment397,922$
Accumulated depreciation(333,626)
Total
$64,296
B-A
USINESSTYPE CTIVITIES
Note Payable - 2004
On June 30, 2004, the Village signed a $645,170 promissory note with the Bank of America,
with an interest rate of 4.96% per annum, maturing May 1, 2024. Proceeds from the note
were used to finance the expansion of the Village water system. Interest on the outstanding
principal balance is paid in arrears, on the first day of each and every May and November.
The final payment of the entire unpaid principal balance and all accrued and unpaid interest is
due on May 1, 2024. The principal may be prepaid at the option of the Village without any
prepayment premium. As of September 30, 2010, $146,275 has been prepaid on the note.
45
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N7–L-TD()
OTEONGERMEBT CONTINUED
B-A()
USINESSTYPE CTIVITIES CONTINUED
Note Payable – 2004 (continued)
Debt service requirements to maturity are as follows:
For the Year Ending
September 30:PrincipalInterestTotal
201126,000$ 18,148$ 44,148$
201227,000 16,859 43,859
201329,000 15,520 44,520
201430,000 14,081 44,081
201532,000 12,593 44,593
2016-2020185,000 37,670 222,400
2021-202436,8951,83038,725
Total
$ 116,701365,895$ 482,596$
On July 14, 2008, the Village signed a $6,554,935 promissory note with the Bank of
America, with an interest rate of 3.6852% per annum, maturing on March 1, 2028. The
proceeds of the note were used to advance refund the 1998 Water Revenue Bonds. Principal
and interest are paid monthly and payments commenced on August 1, 2008 with interest paid
in arrears.
Debt service requirements to maturity are as follows:
For the Year Ending
September 30:PrincipalInterestTotal
2011246,910$ 221,463$ 468,373$
2012255,830 212,671 468,501
2013267,218 202,353 469,571
2014277,867 192,160 470,027
2015287,885 181,626 469,511
2016-20201,621,704 735,219 2,356,923
2021-20251,957,126 402,073 2,359,199
2026-20281,125,093 55,1111,180,204
Total
$ 2,202,6766,039,633$ 8,242,309$
46
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N7–L-TD()
OTEONGERMEBT CONTINUED
CL-TD
HANGES IN ONGERM EBT
The following is a summary of changes in long-term liabilities of the Village for the year
ended September 30, 2010:
BeginningEndingDue Within
BalanceAdditionsDeletionsBalanceOne Year
Governmental Activities:
Note payable - 20023,709,027$ --$ 217,999$ 3,491,028$ 227,514$
--
Capital leases155,448 88,61366,835 43,521
Compensated absences477,553 109,110 (32,605) 554,058 9,830
Net OPEB obligation-- 95,281 15,281 --80,000
Total Governmental Activities
$ 204,3914,342,028$ 267,510$ 4,213,699$ 280,865$
Business-Type Activities:
Note payable - 2004390,895$ --$ 25,000$ 365,895 26,000$
Note payable - 20086,277,567 -- 237,934 6,039,633 246,910
Unamortized deferred loss
on refunding of debt(414,702) -- (22,467) (392,235) --
Compensated absences114,132 31,378 7,097 138,413
Net OPEB obligation-- 10,719 1,719 --9,000
Total Business-Type Activities
$ 42,0976,367,892$ 249,283$ 6,160,706$ 272,910$
All governmental activities compensated absences are liquidated by the general fund.
N8–FRS
OTELORIDA ETIREMENT YSTEM
PD
LAN ESCRIPTION
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.
47
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N8–FRS()
OTELORIDA ETIREMENT YSTEMCONTINUED
PD()
LAN ESCRIPTION CONTINUED
The State of Florida issues a publicly available financial report that includes financial
statements and required supplementary information for the FRS. The latest available report
was for the fiscal year ended June 30, 2010. That report may be obtained by writing to the
State of Florida Division of Retirement, Department of Management Services, P.O. Box
9000, Tallahassee, Florida 32315-9000 or visiting the website at http://dms.myflorida.com.
FP
UNDING OLICY
The FRS funding policy provides for monthly employer contributions at actuarially
determined rates that, expressed as percentages of annual covered payroll are adequate to
accumulate sufficient assets to pay benefits when due. Level percentages of payroll
employer contribution rates, established by State law, are determined using the entry-age
actuarial cost method. The level percentages of payroll method is also used to amortize the
unfunded liability over a period of 30 years, and to amortize each change in actuarial
assumptions.
The contribution rates by job class for the Village’s employees at September 30, 2010 were
as follows: regular employees – 10.77%, special risk employees – 23.25% and employees
participating in the DROP – 12.25%. The regular and special risk employees’ rates include
1.11% for the employer Health Insurance Subsidy contribution and 0.03% for an
administrative fee. The DROP rate includes the 1.11 percent Health Insurance Subsidy
contribution but the 0.03% administrative fee does not apply to DROP participants.
The Village’s contributions to the FRS for the fiscal years ended September 30, 2008, 2009
and 2010 were $160,046, $165,716 and $155,540 respectively, which were equal to the
required contributions for each fiscal year.
N9–PP
OTEENSION LANS
The Village maintains two single employer defined benefit pension plans, the Public Safety
Officers’ Pension Trust Fund and the General Employees’ Pension Trust Fund (GPTF).
Since the Public Safety Officers’ Plan receives contributions that may not be used to pay
benefits of all employee classes, two separate pension trust funds, the Firefighters’ Pension
Trust Fund (FPTF) and the Police Officers’ Pension Trust Fund (PPTF) are reflected in the
financial statements. The General Employee’s Plan is also reflected as a pension trust fund in
the financial statements.
48
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N9–PP()
OTEENSION LANSCONTINUED
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, as calculated by each Plan’s actuary, 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. Expenses are recognized in the accounting period incurred.
Method Used to Value Investments
Investments are reported at fair value, which is determined as follows: securities traded on a
national securities exchange are valued at the last reported sales price on the last business
day of the fiscal year; securities traded in the over-the-counter market and listed securities
for which no sales was reported on that date are valued at the last reported bid price.
Purchases and sales of securities are recorded on a trade-date basis. Net appreciation
(depreciation) in the fair value of investments includes the difference between the cost and
the fair value of investments held, as well as the net realized gains or losses from securities
sold. Gains or losses on sales of securities are based on average cost. Dividend and interest
income is recorded as earned.
Membership in each Plan consisted of the following at September 30, 2010:
FPTFPPTFGPTF
Covered group:
Active members19 12 38
Vested terminated members1 1 3
Total
1320 41
As of the last actuarial date, there were no retirees or beneficiaries receiving benefits.
A. PSO’TF
UBLICAFETYFFICERSRUSTUND
Plan Description
The Public Safety Officers’ Trust Fund is a single-employer defined benefit plan
administered by a five-member Board of Trustees that covers all Village police officers and
firefighters hired after 1996 (prior to 1996, the Village participated in the Florida
Retirement System). The Plan is also governed by Chapters 112, 175 and 185, Florida
Statutes.
49
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N9–PP()
OTEENSION LANSCONTINUED
A. PSO’TF()
UBLICAFETYFFICERSRUSTUNDCONTINUED
Plan Description (continued)
Any firefighter or police officer who completes six 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 retirement benefit shall be equal to 3% for the
first six (6) years of service, 3.5% for the next four (4) years of service, 4% for the next five
(5) years of service, 3% for the next six (6) years of service, 2% for the next four (4) years
of service and 3% for all years after twenty-five years of service. Early retirement may be
taken after a firefighter or police office attained the age of 50 and has six (6) years of
credited service. In the event of early retirement, benefits are actuarially reduced to take
into account the firefighter or police officer’s younger age and earlier commencement of
retirement benefits. Such reduction shall not exceed 3% 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/her average monthly compensation as of his/her
disability retirement date, or
(b)The accrued normal retirement benefit.
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/her average monthly compensation as of his/her
disability retirement date, or
(b)The accrued normal retirement benefit.
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
Final Compensation for life.
(b)Non-Line-of- Duty-Death – the spouse of a member with six years of credited service
will receive the actuarial equivalent of the accrued early or normal retirement benefit.
If the firefighter or police officer dies or terminates employment with less than six years of
credited service, he/she is entitled to a refund of the money he contributed.
50
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N9–PP()
OTEENSION LANSCONTINUED
A. PSO’TF()
UBLICAFETYFFICERSRUSTUNDCONTINUED
Plan Description (continued)
All retirees and beneficiaries receiving pension benefits will be paid a supplemental benefit
equal to $20 for each year of the member’s Credited Service up to a maximum of $600.
The supplemental benefit ceases upon the later of the death of the retired member or
beneficiary.
Funding Policy
Contribution requirements of Plan members and the Village are established, by and may be
amended only by the Village Council. Firefighters and police officers are required to
contribute 5% of their compensation to the Plan. Pursuant to Chapters 175 and 185 of the
Florida Statutes, premium taxes on certain property and casualty insurance contracts written
on Village properties is collected by the State and is remitted to the Plan. The amount of
insurance premium taxes collected by the Village totaled $209,245 for the year ended
September 30, 2010, $149,253 for property insurance contracts for firefighters under
Chapter 175 and $59,992 for casualty insurance contracts for police officers under Chapter
185. This amount was recognized as a revenue and expenditure in the General Fund.
Employer contributions for the fiscal year ending September 30, 2010 determined using the
actuarial valuation dated October 1, 2009 were 13.03% of covered payroll for police
officers and 18.96% of covered payroll for firefighters. The Village is required to contribute
the remaining amounts necessary to finance the benefits based on actuarially determined
amounts.
The Firefighters’ Pension Trust Fund (part of the Public Safety Officers’ Trust Fund) does
not issue separate stand alone financial statements. Included below are the Statement of
Fiduciary Net Assets and the Statement of Changes in Fiduciary Net Assets as of and for
the year ended September 30, 2010.
51
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
9–PP()
N
OTEENSION LANSCONTINUED
A. PSO’TF()
UBLICAFETYFFICERSRUSTUNDCONTINUED
Funding Policy (continued)
FIREFIGHTERS' PENSION TRUST FUND
STATEMENT OF FIDUCIARY NET ASSETS
SEPTEMBER 30, 2010
ASSETS
Cash and cash equivalents129,568$
Investments4,213,240
Prepaid items2,500
Contributions receivable64,882
Accrued interest receivable12,838
Total Assets
4,423,028
LIABILITIES
Accounts payable10,565
Net Assets Held in Trust for Pension Benefits
$4,412,463
FIREFIGHTERS' PENSION TRUST FUND
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FISCAL YEAR ENDED SEPTEMBER 30, 2010
ADDITIONS
Contributions502,979$
Investment income , net502,670
Total Additions
1,005,649
DEDUCTIONS
Operating expenses25,825
Total Deductions
25,825
Net increase 979,824
Net assets held in trust for pension benefits:
Net Assets
- Beginning
3,432,639
Net Assets
- Ending
$4,412,463
52
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N9–PP()
OTEENSION LANSCONTINUED
A. PSO’TF()
UBLICAFETYFFICERSRUSTUNDCONTINUED
Funding Policy (continued)
The Police Officers’ Pension Trust Fund (part of the Public Safety Officers’ Trust Fund)
does not issue separate stand alone financial statements. Included below are the Statement
of Fiduciary Net Assets and the Statement of Changes in Fiduciary Net Assets as of and for
the year ended September 30, 2010.
POLICE OFFICERS' PENSION TRUST FUND
STATEMENT OF FIDUCIARY NET ASSETS
SEPTEMBER 30, 2010
ASSETS
Cash and cash equivalents48,514$
Investments1,626,962
Prepaid items965
Contribution receivable6,382
Accrued interest receivable4,964
Total Assets
1,687,787
LIABILITIES
Accounts payable4,076
Net Assets Held in Trust for Pension Benefits
$1,683,711
POLICE OFFICERS' PENSION TRUST FUND
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FISCAL YEAR ENDED SEPTEMBER 30, 2010
ADDITIONS
Contributions201,228$
Investment income, ne 190,522
t
Total Additions
391,750
DEDUCTIONS
Operating expenses10,143
Total Deductions
10,143
Net increase 381,607
Net assets held in trust for pension benefits:
1,302,104
Net Assets
- Beginning
Net Assets
- Ending
$1,683,711
53
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N9–PP()
OTEENSION LANSCONTINUED
B. GE’PTF
ENERAL MPLOYEESENSION RUSTUND
Plan Description
The General Employees’ Pension Trust Fund is a single employer defined benefit plan
administered by a five member Board of Trustees that covers all Village general employees
hired after 1996 (prior to 1996, the Village participated in the Florida Retirement System).
Any general employee who 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 six (6) years of credited
service. In the event of early retirement, benefits are actuarially reduced to take into
account the general employee younger age and earlier commencement of retirement
benefits. Such reduction shall not exceed 5% per year. Disability benefits can be received
for total and permanent disabilities as determined by the Board of Trustees. If the pension
is granted, the benefit amount shall be as follows:
If the injury or disease is service connected, the general employee shall be entitled to the
greater of (a) or (b):
(a)A monthly pension equal to 42% of his/her average monthly compensation as of his
disability retirement date, or
(b)An amount equal to the number of years of his/her credited service multiplied by 2% of
his average monthly salary based upon his final five years of service.
If the injury or disease is not service connected, the general employee shall be entitled to
the greater of (a) or (b):
(a)A monthly pension equal to 25% of his/her average monthly compensation based on his
final five (5) years of service, or
(b)An amount equal to the number of years of his/her credited service multiplied by 2% of
his average monthly salary based upon his final five years of service.
If the general employee dies prior to retirement from the Village, the beneficiary shall
receive an amount equal to the vested pension benefit. A survivor benefit is payable to the
beneficiary starting when the member would have reached retirement age.
If the general employee dies or terminates employment with less than six years of credited
service, he is entitled to a refund of the money contributed.
54
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N9–PP()
OTEENSION LANSCONTINUED
B. GE’PTF()
ENERAL MPLOYEESENSION RUSTUNDCONTINUED
Funding Policy
Contribution requirements of Plan members and the Village are established, and may be
amended only by the Village Council. General employees are required to contribute 5% of
their compensation to the Plan. Employer contributions for the fiscal year ending
September 30, 2010 determined using the actuarial valuation dated October 1, 2008 were
7.85% of covered payroll. However, the Village elected to use a contribution rate of
8.06%. The Village is required to contribute the remaining amount necessary to finance the
benefits based on an actuarially determined amount.
The General Employees’ Pension Trust Fund does not issue separate stand alone financial
statements. Included below are the Statement of Fiduciary Net Assets and the Statement of
Changes in Fiduciary Net Assets as of and for the year ended September 30, 2010.
GENERAL EMPLOYEES' PENSION TRUST FUND
STATEMENT OF FIDUCIARY NET ASSETS
SEPTEMBER 30, 2010
ASSETS
Cash and cash equivalents49,934$
Investments1,546,003
Contributions receivable12,634
Accrued interest receivable8,004
Total Assets
1,616,575
LIABILITIES
Accounts payable8,340
33,604
Due to broker
Total Liabilities
41,944
Net Assets Held in Trust for Pension Benefits
$1,574,631
55
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N9–PP()
OTEENSION LANSCONTINUED
B. GE’PTF()
ENERAL MPLOYEESENSION RUSTUNDCONTINUED
Funding Policy (continued)
GENERAL EMPLOYEES' PENSION TRUST FUND
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FISCAL YEAR ENDED SEPTEMBER 30, 2010
ADDITIONS
Contributions240,082$
Investment income, ne114,040
t
Total Additions
354,122
DEDUCTIONS
Refunds of contributions16,639
Operating expenses29,181
Total Deductions
45,820
Net increase 308,302
Net assets held in trust for pension benefits:
1,266,329
Net Assets -
Beginning
Net Assets -
Ending
$1,574,631
The Village’s current contributions were determined through actuarial valuations performed
as of October 1, 2008 for the General Employees’ Pension Trust Fund and October 1, 2009
for the Public Safety Officers’ Pension Trust Fund. Significant actuarial assumptions as of
the latest actuarial valuations are as follows:
Public Safety Officers' Pension Fund
PoliceGeneral Employees'
Firefighters'Officers'Pension Fund
Valuation date10/1/200910/1/200910/1/2009
Actuarial cost methodEntry Age NormalEntry Age NormalAggregate
Amortization methodN/AN/AN/A
dN/AN/AN/A
Remaining amortization perio
Asset valuation methodFive year smoothingFive year smoothingFive year smoothing
Actuarial assumptions:
Investment rate of return8%8%7.5%
Projected salary increase6%6%6%
Includes inflation at4%4%4%
Cost of living adjustmentsN/AN/AN/A
56
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
9–PP()
N
OTEENSION LANSCONTINUED
The aggregate actuarial cost method was used to determine the annual required contribution
of the employer for the General Employees Pension Fund for the 2010 fiscal year. Because
this method does not identify or separately amortize unfunded actuarial liabilities,
information about the Plan’s funded status and funding progress has been prepared using
the entry age actuarial cost method for that purpose, and the information presented is
intended to serve as a surrogate for the funded status and funding progress of the Plans.
The Village’s 2010 annual pension cost and net pension asset for each Plan are shown
below.
PoliceGeneral
Firefighters’Officers’Employees'
Annual required contribution (ARC)342,571$ 130,820$ 146,158$
Interest on net pension obligation (NPO)(12,503) (11,742) (11,871)
Adjustment to ARC(17,476)(16,413) (17,879)
Annual pension cost 347,544 135,491 152,166
Actual contributions350,366135,199148,167
Increase (decrease) in net pension obligation(2,822) 292 3,999
(146,776)(158,284)
Net pension obligation (asset), beginning(156,287)
Net Pension Obligation (Asset) -
Ending
$ (146,484)(159,109)$ (154,285)$
Three-Year Trend Information
AnnualPercentageNet Pension
Pensionof APCObligation
Fiscal Year EndingCost (APC)Contributed(Asset)
Firefighters’ Retirement System
September 30, 2008205,406$ 95.4%(158,298)
September 30, 2009215,545 99.1%(156,287)
September 30, 2010347,544 100.8%(159,109)
Police Officers’ Retirement System
September 30, 200888,663$ 135.8%(125,284)
September 30, 200993,177 123.1%(146,776)
September 30, 2010135,491 99.8%(146,484)
General Employees’ Retirement System
September 30, 200891,665$ 142.5%(113,056)
September 30, 200996,179 147.0%(158,284)
September 30, 2010152,166 97.4%(154,285)
57
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N9–PP()
OTEENSION LANSCONTINUED
The funded status of the Plans as of October 1, 2009, the most recent actuarial valuation
date, is as follows:
Actuarial
UAAL as
Accrued
ActuarialLiabilityUnfundeda % of
Value(AAL) -AALFundedCoveredCovered
AssetsEntry Age(UAAL) RatioPayrollPayroll
(a)(b)(b) - (a)(a) / (b)( c)((b - a) / c)
Public Safety Pension Fund:
Fire3,965,053$ 4,471,106$ 506,053$ 88.7%1,434,855$ 35.3%
Police1,333,906 987,399 (346,507) 135.1%749,835 -46.2%
General Employees' Pension Fund*
1,341,5181,465,279 (123,761) 109.2%1,890,529 -6.5%
*For purposes of this schedule, the AAL for the General Employees’ Plan was determined
using the entry age actuarial cost method. Note that the ARC for the Plan was calculated
using the aggregate actuarial cost method.
The schedule of funding progress, presented as required supplementary information (RSI)
following the notes to the financial statements, presents multiyear trend information about
whether the actuarial values of plan assets are increasing or decreasing over time relative to
the AALs for benefits.
N10–OPEB
THER OST MPLOYMENT ENEFITS
OTE
The Village provides an optional single employer defined benefit post-employment
healthcare plan to eligible individuals. The plan allows its employees and their
beneficiaries, at their own cost, to continue to obtain health, dental and other insurance
benefits upon retirement. The benefits of the plan conform to Florida Statutes, which are
the legal authority for the plan. The plan has no assets and does not issue a separate
financial report.
58
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N10–OPEB()
THER OST MPLOYMENT ENEFITS CONTINUED
OTE
The Village does not directly make a contribution to the plan on behalf of retirees. Retirees
and their beneficiaries pay the same group rates as are charged to the Village for active
employees by its healthcare provider. However, the Village’s actuaries, in their actuarial
valuation, calculate an offset to the cost of these benefits as an Employer Contribution,
based upon an implicit rate subsidy. This offset equals the total age-adjusted costs paid by
the Village or its active employees for coverage of the retirees and their dependents for the
year net of the retiree’s own payments for the year. The annual other post employment
benefit (OPEB) cost is calculated based on the annual required contribution of the
employer, an amount actuarially determined in accordance with GASB Statement No. 45.
The annual required contribution represents a level of funding that, if paid on an ongoing
basis, is projected to cover normal cost each year and to amortize any unfunded actuarial
liabilities over a period not to exceed thirty years.
The annual OPEB cost for the Village for the current year and the related information is as
follows:
Required Contribution Rates
EmployerPay-as-you-go
Plan membersN/A
FY 2010 Annual Required Contribution (ARC)106,000$
Interest on Net OPEB Obligation--
Adjustment to ARC--
Annual OPEB Cost106,000
Employer Contributions(17,000)
Increase in the Net OPEB Obligation89,000
Net OPEB Obligation - October 1, 2009--
Net OPEB Obligation -
September 30, 2010
$ 89,000
The annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the
net OPEB obligation for 2010 was:
Fiscal year ended9/30/2010
Annual OPEB cost106,000$
Percentage of OPEB cost contributed 16%
Net OPEB Obligation
$89,000
59
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N10–OPEB()
THER OST MPLOYMENT ENEFITS CONTINUED
OTE
The funded status of the plan as of the latest actuarial valuation was as follows:
Actuarial valuation date
October 1, 2009
Actuarial accrued liability (AAL)484,000$
Actuarial value of plan assets--
Unfunded actuarial liability (UAAL)484,000
Funded ratio--
Covered payroll4,111,000
UAAL as a percentage of covered payroll11.80%
The actuarial valuation for the calculation of OPEB involves estimates of the value of
reported amounts and assumptions about the probability of events in the future. Amounts
determined regarding the funded status of the plan and the annual required contributions of
the employer are subject to continual revision as actual results are compared to past
expectations and new estimates are made about the future. The required schedule of funding
progress presented as required supplementary information is designed to provide multi-year
trend information to show whether the actuarial value of plan assets is increasing or
decreasing over time relative to the actuarial accrued liability for benefits. However, the
Village has not contributed assets to the plan at this time
Projections of benefits are based on the substantive plan (the plan as understood by the
employer and plan members) and include the types of benefits in force at the valuation date
and the pattern of sharing benefit costs between the Village and the plan members to that
point. Actuarial calculations reflect a long-term perspective and employ methods and
assumptions that are designed to reduce short-term volatility in actuarial accrued liabilities
and the actuarial value of assets. Significant methods and assumptions were as follows:
Actuarial valuation dateOctober 1, 2009
Actuarial cost methodProjected unit credit
Amortization method15-year open period; level-dollar payment
Asset valuation methodUnfunded
Actuarial assumptions investment return4% per annum
(includes inflation at 2.75% per annum)
Healthcare cost trend rate(s):
Select rates10.00% for 2009/2010 graded to
6% for 2017/18
Ultimate rate5.00% per annum
60
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
11–CC
N
OTEOMMITMENTS AND ONTINGENCIES
LA
EASE GREEMENTS
On December 20, 1994, the Village entered into an Interlocal agreement with Palm Beach
County. Per the agreement, Palm Beach County provided for partial funding, land
acquisition and design and construction of a branch library within Tequesta. Upon
completion of the project, the library was leased to Palm Beach County for 50 years for an
annual rent of one dollar. In the event the Village terminates the lease before the end of 50
years, the Village must reimburse Palm Beach County a depreciated value using a useful
life of 25 years based on an initial value of $405,000 calculated on a straight-line basis.
CS–RRC
ONTRACTEDERVICES EFUSE AND ECYCLING OLLECTION
The Village entered into a solid waste and recyclable collection agreement with Waste
Management Inc. of Florida on September 13, 2007 for a period of five years beginning
October 01, 2007 and expiring September 30, 2012. With this agreement the Village
granted Waste Management the exclusive franchise for solid waste collection of residential,
commercial, industrial and roll-off refuse, recycling and vegetative waste. The Village, on
August 5, 2010, entered into the first amendment to the agreement separating the diesel fuel
and collection components of the rate allowing for separate calculation of an annual
increase. The annual change in the collection component is determined using the CPI (June
to June) while the annual change in the fuel component is determined using the change in
the cost of diesel fuel determined by reference to EIA/DOE website that reports average
prices. Effective September 30, 2010 the Village entered into a second amendment to the
agreement extending the term of the current agreement and additional five (5) years from
October 1, 2012 and expiring September 30, 2017.
CS–F/EMS
ONTRACTEDERVICES IREMERGENCY EDICAL ERVICE
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, 2010, fire protection fees received from Jupiter Inlet
Colony were $205,822.
61
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
11–CC()
N
OTEOMMITMENTS AND ONTINGENCIES CONTINUED
CC
ONSTRUCTION OMMITMENTS
Significant construction commitments as of September 30, 2010 are as following:
EstimatedEstimated
ExpendedCost toCompletion
Descriptionto DateCompleteDate
Tequesta Bridge570,000$ **Winter 2010
$ Fall 20112,445,605
Water Plant Expansion --
** The Florida Department of Transportation (FDOT) has agreed to complete this project
using $3,000,000 in Federal Economic Stimulus Funds allocated for the bridge.
According to a memorandum of understanding with the FDOT, the Village will be
responsible for costs in excess of the $3,000,000 of the stimulus funds. In addition, the
FDOT required the Village of Tequesta to deposit $1,198,323.00 with the FDOT to be
available in the event the cost to build the bridge exceeds $3,000,000. As of September
30, 2010 the FDOT has refunded $450,000 of the initial deposit, with any remaining
amounts to be refunded after completion of the project and a final accounting of the
total project costs.
N12–RM
OTEISKANAGEMENT
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.
While the Village cannot anticipate the areas in which potential claims may arise, the
Village purchases commercial insurance to protect against areas of possible exposure
germane to municipal entities such as property, liability, automobile, workers’
compensation, crime, storage tank, inland marine and railroad coverage. Deductibles and
limits vary by coverage and are secured based upon the Village’s tolerance of risk retention
in each area.
62
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
N12–RM()
OTEISKANAGEMENT CONTINUED
At the Village Council’s direction, the property deductible of $100,000 is applicable for all
perils excluding hurricane/windstorm damage. The Florida Municipal Insurance Trust
(FMIT) applies a named storm deductible of 5% of the 100% value of real and personal
property, personal property of others and business income values at the time of loss or
damage at the locations where the damage occurred, subject to the policy deductible,
whichever is greater. The Village continues to self insure all properties valued under
$100,000. FMIT issued members in good standing a return of premium credit; the Village
of Tequesta received a total credit of $20,422 in fiscal year 2009/2010 related to policy year
2008/2009.
The Village remains fully insured with the FMIT for workers’ compensation coverage with
statutory limits. Premiums are based upon risk class and remuneration of covered
employees adjusted by an experience modification factor which includes three prior years
of claims history. At the end of each fiscal year, the plan is audited and the Village can
either receive a return of premium or be required to pay additional premium base upon
actual versus estimated payroll. The final audit by the FMIT for fiscal year 2009/2010
resulted in the Village owing the total of $2,102, of which $1,979 resulted from a workers’
compensation premium shortfall.
There were no significant changes in insurance coverage from coverage in prior years.
Settled claims have not exceeded the commercial coverage in any of the past three fiscal
years.
N13–JV
OTEOINT ENTURE
The Village, in conjunction with six other municipalities, organized a consortium to provide
mutual fire and emergency aid. The consortium is known as the Northern Area Mutual Aid
Consortium (NAMAC). During 1999, the consortium purchased equipment and supplies as
well as collected contributions. The consortium does not issue separate financial
statements. The Village has not been obligated to contribute any funds to the consortium
since its inception in 1999.
63
REQUIRED SUPPLEMENTARY INFORMATION
VILLAGE OF TEQUESTA, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATIO
N
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2010
Variance
with Final
Budget
Budgeted AmountsActualPositive
OriginalFinalAmounts(Negative)
Revenues
Ad valorem taxes4,636,000$ 4,636,000$ 4,643,816$ 7,816$
Other taxes1,014,240 1,223,485 1,315,006 91,521
Intergovernmental700,440 700,440 739,110 38,670
Franchise fees490,000 490,000 435,766 (54,234)
Charges for services786,310 786,310 687,332 (98,978)
Intragovernmental307,740 307,740 307,740 --
Licenses and permits247,400 247,400 279,835 32,435
Investment earnings57,000 57,000 71,067 14,067
Fines and forfeitures22,400 22,400 21,721 (679)
Miscellaneous36,500 36,500 61,974 25,474
Rents and royalties171,850 171,850 161,492 (10,358)
Total Revenues
8,469,880 8,679,125 8,724,859 45,734
Expenditures
Current:
General government1,421,350 1,421,257 1,340,475 80,782
Public safety5,889,424 6,293,989 5,830,734 463,255
Transportation741,030 757,963 738,323 19,640
Leisure services541,340 566,993 554,449 12,544
Capital outlay68,000 363,068 352,076 10,992
Debt service:
Principal282,120 284,841 284,833 8
Interest159,550 159,550 159,506 44
Fiscal charges12,000 12,000 10,286 1,714
Total Expenditures
9,859,6619,114,814 9,270,682 588,979
) of Revenues
Excess (Deficiency
over Expenditures
(1,180,536)(644,934) (545,823) 634,713
Uses
Other Financing
Transfers out-- (158,549) (158,549) --
e in Fund Balance
Net Chang (1,339,085)(644,934) (704,372) 634,713
Fund Balance
- Beginning of Year
1,339,085 4,680,184 3,341,099
644,934
Fund Balance
- End of Yea
r$ ----$ 3,975,812$ 3,975,812$
See note to the budgetary comparison schedule.
64
VILLAGE OF TEQUESTA, FLORIDA
NOTE TO THE BUDGETARY COMPARISON SCHEDULE
FISCAL YEAR ENDED SEPTEMBER 30, 2009
N1–BBA
OTEUDGETS AND UDGETARY CCOUNTING
Formal budgetary integration is employed as a management control device during the year
for the General Fund, Special Revenue Fund and Capital Projects Funds. All budgets are
legally enacted through passage of a resolution.
Budgets are adopted on a basis consistent with accounting principles generally accepted in
the United States of America. 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:
st
1)Prior to September 1, the Village Manager submits to the Village Council a
st
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.
st
3)Prior to October 1, the budget is legally enacted through adoption of a resolution.
As the original budgeted appropriations were adopted by resolution, all changes to the total
appropriations of a fund must be adopted by resolution. Budget amendments for items in
excess of $5,000, capital items or amendments transferring funds between unrelated
departments are presented to the Village Council for approval. Budget amendments not
requiring Village Council approval are submitted by departments to the Finance
Department and the Village Manager for approval. During the year, total supplemental
appropriations of $903,396 were approved and adopted for the General Fund.
Appropriations are legally controlled at the fund level and expenditures may not legally
exceed budgeted appropriations at that level. Appropriations lapse at year end.
65
VILLAGE OF TEQUESTA, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATIO
N
SCHEDULE OF EMPLOYER CONTRIBUTIONS - PENSIONS
FISCAL YEAR ENDED SEPTEMBER 30, 2010
AnnualVillage Contribution
FiscalRequiredVillagePremium TaxPercentage
YearContributionContributionContributionContributed
Firefighters' Pension Fund
2005145,344$ 115,072$ 70,455$ 127.6%
2006165,394 102,194 70,455 104.4%
2007171,986 116,915 70,455 108.9%
2008201,074 127,844 70,455 98.6%
2009211,458 143,079 70,455 101.0%
2010342,571 279,911 70,455 102.3%
Police Officers' Pension Fund
200558,489$ 49,002$ 33,130$ 140.4%
2006106,969 70,169 33,130 96.6%
2007111,243 87,635 33,130 108.6%
200885,371 87,240 33,130 141.0%
200988,769 81,539 33,130 129.2%
2010130,820 102,069 33,130 103.3%
General Employees' Pension Fund
200595,949$ 98,658$ N/A102.8%
200688,512 108,015 N/A122.0%
200792,042 122,449 N/A133.0%
200888,790 130,665 N/A147.2%
200992,364 141,407 N/A153.1%
2010146,458 148,167 N/A101.2%
66
VILLAGE OF TEQUESTA, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS - PENSIONS
FISCAL YEAR ENDED SEPTEMBER 30, 2010
Actuarial
Accrued
ActuarialLiabilityUnfundedUAAL as a %
ActuarialValue of(AAL) - AALFundedCoveredof Covered
ValuationAssetsEntry Age*(UAAL)Ratio PayrollPayroll
Date(a)(b)(b) - (a)(a) / (b)(c) ((b - a) / c)
(1)
Public Safety
10/01/021,875,657$ 1,428,869$ (446,788)$ 131.3%2,132,437$ (21.0%)
10/01/031,966,148 1,610,963 (355,185) 122.0%1,339,667 (26.5%)
10/01/052,782,953 2,598,331 (184,622) 107.1%1,650,403 (11.2%)
10/01/074,080,609 3,730,247 (350,362) 109.4%1,931,871 (18.1%)
10/01/09
Fire3,965,053 4,471,106 506,053 88.7%1,434,855 35.3%
Police1,333,906 987,399 (346,507) 135.1%749,835 (46.2%)
Note: Separate information for fire and police was not available prior to the 10/1/09 valuation.
(1)
Through10/1/07,theannualrequiredcontribution(ARC)wascalculatedusingtheaggregateactuarial
costmethod.Informationinthisscheduleforthoseyearswascalculatedusingtheentryageactuarialcost
method as a surrogate for the funding progress of the Plan.
(2)
General Employees'
10/01/03333,944$ 264,486$ (69,458)$ 126.3%1,056,797$ (6.5%)
10/01/05602,280 429,242 (173,038) 140.3%1,098,039 (15.8%)
10/01/071,026,897 764,571 (262,326) 134.3%1,500,201 (17.5%)
10/01/081,235,850 1,034,855 (200,995) 119.4%1,790,280 (11.2%)
10/01/091,465,279 1,341,518 (123,761) 109.2%1,890,529 (6.5%)
(2)
Theannualrequiredcontribution(ARC)wascalculatedusingtheaggregateactuarialcostmethod.
Informationinthisscheduleiscalculatedusingtheentryageactuarialcostmethodasasurrogateforthe
funding progress of the Plan.
67
VILLAGE OF TEQUESTA, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS - OTHER POST EMPLOYMENT BENEFITS
Unfunded
(a)Actuarial
ActuarialActuarialUnfundedAccrued
ActuarialValue ofAccruedActuarialFundedCoveredLiability as of
Valuation DateAssetsLiability (AAL)LiabilityRatioPayroll% of Covered
October 1, 2009--$ 484,000$ (484,000)$ 0.00%4,111,000$ 11.80%
TheaboveschedulereflectsdataforoneyearduetotheyearendedSeptember30,2010beingthefirstyear
of implementation of GASB Statement No. 45.
68
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
Page Intentionally Left Blank
NONMAJOR GOVERNMENTAL FUNDS
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Special revenue funds are used to account for specific revenues that are legally restricted
to expenditures for particular purposes.
Special Law Enforcement Trust Fund
– This fund accounts for forfeitures received by
the Police Department. The forfeitures must be expended for certain law enforcement
purposes as prescribed by Florida Statute Chapter 932.704.
Capital Projects Funds
Capital Improvement Fund –
This fund is used to account for the maintenance and
upkeep of the Village’s general infrastructure (such as roads, bridges, sidewalks and
storm water drainage systems) and streetscape beautification projects.
Capital Projects Fund
– This fund accounts for the acquisition or construction of major
capital projects, other than those financed by proprietary fund types.
VILLAGE OF TEQUESTA, FLORIDA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2010
Special RevenueTotal
Capital Projects
CapitalCapitalonmajo
Special LawNr
EnforcementImprovementProjectsGovernmental
FunFunFunFunds
ddd
Assets
Cash and cash equivalent$ 479,00821,072$ 268,773$ 768,853$
s
Other assets--748,323-- 748,323
Total Assets
$21,072$1,227,331$268,773$1,517,176
Liabilities and Fund Balances
Liabilities
Accounts payabl$--$12,147$-- 12,147$
e
Total Liabilities
--12,147-- 12,147
Fund Balances
Reserved for encumbrances 63,038-- 54,800 117,838
Unreserved, designated:
Subsequent year's expenditures 250,0001,000 -- 251,000
Unreserved, undesignated reported in:
Special revenue fund --20,072 -- 20,072
Capital projects fun--902,146213,9731,116,119
d
Total Fund Balances1,215,184268,7731,505,029
21,072
Total Liabilities and Fund Balances
$21,072$1,227,331$268,773$1,517,176
69
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND
NONMAJOR GOVERNMENTAL FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2010
Special RevenueTotalCapital Projects
Special LawCapitalCapitalNonmajor
EnforcementImprovementProjectsGovernmental
FundFundFundFunds
Revenues
Intergovernmental--$ --$ 100,000$ 100,000$
-- -- 35
Miscellaneous35
Total Revenues
--35 100,000 100,035
Expenditures
Current:
General government1,000 -- -- 1,000
Leisure services-- 64,891 -- 64,891
Capital outlay-- 162,148 80,000 242,148
Total Expenditures 227,039 80,000 308,039
1,000
Excess (Deficiency) of Revenues Over
Expenditures
(227,039)(965) 20,000 (208,004)
Other Financin Sources (Uses)
g
Transfers in-- 273,549 -- 273,549
Transfers out-- -- (115,000) (115,000)
Total Other Financin Sources (Uses)
g 273,549-- (115,000) 158,549
Net Chane in Fund Balances
g 46,510(965) (95,000) (49,455)
1,168,67422,037 363,773 1,554,484
Fund Balances
- Beginning of Year
$ 1,215,18421,072$ 268,773$ 1,505,029$
Fund Balances
- End of Year
70
VILLAGE OF TEQUESTA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
SPECIAL LAW ENFORCEMENT TRUST FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2010
Variance
with
Final
Budget
Budgeted AmountsActualPositive
OriginalFinalAmounts(Negative)
Revenues
Miscellaneous--$ --$ 35$ 35$
Expenditures
Current:
General government-- 1,000 1,000 --
Excess (Deficiency) of Revenues
(1,000)-- (965) 35
over Expenditures
1,000-- 22,037 21,037
Fund Balance
- Beginning of Year
$ ----$ 21,072$ 21,072$
Fund Balance
- End of Year
71
VILLAGE OF TEQUESTA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
CAPITAL IMPROVEMENT FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2010
Variance
with
Final
Budget
Budgeted AmountsActualPositive
OriginalFinalAmounts(Negative)
Revenues
$ ----$ --$ --$
Expenditures
Current:
Leisure services-- 65,000 64,891 109
1,327,831 162,148 1,165,683
Capital outlay1,313,323
Total Expenditures
1,313,323 1,392,831 227,039 1,165,792
Excess (Deficiency) of Revenues
over Expenditures
(1,392,831)(1,313,323) (227,039) 1,165,792
Sources
Other Financing
Transfers in115,000 273,549 273,549 --
Net Change in Fund Balance
(1,119,282)(1,198,323) 46,510 1,165,792
1,119,2821,198,323 1,168,674 49,392
Fund Balance
- Beginning of Year
Fund Balance
- End of Yea
r$ ----$ 1,215,184$ 1,215,184$
72
VILLAGE OF TEQUESTA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
CAPITAL PROJECTS FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2010
Variance
with
Final
Budget
Budgeted AmountsActualPositive
OriginalFinalAmounts(Negative)
Revenues
Intergovernmental$ 80,000--$ 100,000$ 20,000$
Expenditures
Capital outlay--134,800 54,80080,000
Excess (Deficiency) of Revenues
Over Expenditures
(54,800)-- 20,000 74,800
Other Financing Uses
Transfers Out(115,000)(115,000)(115,000)--
Net Change in Fund Balance (169,800)(115,000) (95,000) 74,800
115,000169,800363,773193,973
Fund Balance
- Beginning of Year
$--$--$268,773$268,773
Fund Balance
- End of Year
73
NONMAJOR ENTERPRISE FUNDS
NONMAJOR ENTERPRISE FUNDS
Stormwater Fund
– This fund is used to account for the construction and maintenance
of the Village’s stormwater system.
Refuse and Recycling Fund
– This fund is used to account for revenues received from
non-ad valorem assessments charged to residents for residential curbside pick-up of solid
waste and recyclable material.
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF NET ASSETS
NONMAJOR ENTERPRISE FUNDS
SEPTEMBER 30, 2010
Total
Nonmajor
StormwaterRefuse &Enterprise
UtilityRecyclingFunds
Assets
Current Assets
Cash and cash equivalents537,850$ 137,158$ 675,008$
Investments4,602 4,628 9,230
t 3,1562,450 5,606
Receivables, ne
Inventories481 -- 481
Prepaid items273 273--
Total Current Assets
545,656144,942690,598
Noncurrent Assets
Capital assets being depreciated, net1,568,981 1,568,981--
Total Assets
2,114,638144,9422,259,579
Liabilities
Current Liabilities
Accounts payable4,18635,39039,576
Non-Current Liabilities
Compensated absences480 480--
Total Liabilities
4,66635,39040,056
Net Assets
Invested in capital assets, net of related debt --1,568,981 1,568,981
Unrestricted540,990109,552650,542
Total Net Assets
$2,109,971$109,552$2,219,523
74
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENSES AND
AND CHANGES IN NET ASSETS
NONMAJOR ENTERPRISE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2010
Total
Nonmajor
StormwaterRefuse & Enterprise
UtilityRecyclingFunds
Operating Revenues
Charges for services313,126$$414,657$727,783
Operating Expenses
r --106,458 106,458
Stormwate
Purchased services-- 425,006 425,006
Management services10,440 6,150 16,590
Depreciation106,523 106,523--
Total Operating Expenses
223,421431,156654,577
Operating Income (Loss)
89,705(16,499)73,206
Non-Operating Revenues
Miscellaneous revenue792 -- 792
Investment earnings 3,392 5,7642,372
Total Non-Operating Revenues
4,184 6,5562,372
Change in Net Assets
(14,127)93,889 79,762
2,016,082123,6792,139,761
Net Assets
- Beginning
$2,109,971$109,552$2,219,523
Net Assets
- Ending
75
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2010
Total
Nonmajor
StormwaterRefuse &Enterprise
UtilityRecycling Funds
Cash Flows from Operating Activities
Cash received from customers, governments and other funds315,129$ 414,759$ 729,888$
Cash paid to suppliers(85,646) (432,261) (517,907)
Cash paid to employees(44,143) -- (44,143)
Other cash received792--792
Net Cash Provided by (Used in) Operating Activities
186,132 168,630(17,502)
Cash Flows from Capital and Related Financing Activities
(54,582)--
Acquisition and construction of capital assets (54,582)
Net Cash Used in Capital and Related Financing Activities
(54,582) (54,582)--
Cash Flows from Investing Activities
Sales of investments183,086 107,824 290,910
5,7642,372
Interest received on investments3,392
Net Cash Provided by Investing Activities
186,478 296,674110,196
Net Increase in Cash and Cash Equivalents
92,694318,028 410,722
264,28644,464
219,822
Cash and Cash Equivalents
- Beginning
$537,850$ 675,008137,158$
Cash and Cash Equivalents
- Ending
Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided by (Used in) Operating Activities:
Operating income (loss)89,705$ (16,499)$ 73,206$
Depreciation106,523 -- 106,523
Miscellaneous non-operating revenue792 -- 792
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable2,003 102 2,105
Inventories680 -- 680
Prepaid items12 -- 12
Increase (decrease) in:
Accounts payable(11,927) (1,105) (13,032)
(1,656)--
Compensated absences(1,656)
Net Cash Provided by (Used in) Operating Activities
$186,132$ 168,630(17,502)$
Noncash Investing Activities
$ 3,2661,619$
Change in fair value of investments1,647$
76
Page Intentionally Left Blank
FIDUCIARY FUNDS
FIDUCIARY FUNDS
Firefighters’ Pension Trust Fund
– This fund accounts for the accumulation of
resources and for contributions and benefits of the firefighter employees.
Police Officers’ Pension Trust Fund
– This fund accounts for the accumulation of
resources and for contributions and benefits of the police employees.
General Employees’ Pension Trust Fund
– This fund accounts for the accumulation of
resources and for contributions and benefits for the general employees of the Village.
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
SEPTEMBER 30, 2010
PoliceGeneral
Firefighters'Officers'Employees'
PensionPensionPension
Trust FundTrust FundTrust FundTotal
Assets
Cash and cash equivalents129,568$ 48,514$ 49,934$ 228,016$
Investments, at fair value:
Corporate stocks2,003,707 774,790 844,883 3,623,380
Corporate bonds528,476 204,464 301,042 1,033,982
Government backed assets1,244,439 481,779 305,987 2,032,205
Mutual funds436,618 165,929 94,091 696,638
Prepaid items2,500 965 -- 3,465
Contributions receivable64,882 6,382 12,634 83,898
e12,8384,9648,00425,806
Accrued interest receivabl
Total Assets
4,423,0281,687,7871,616,5757,727,390
Liabilities
Accounts payable 4,07610,565 8,340 22,981
Due to broker----33,60433,604
Total Liabilities
10,5654,07641,94456,585
Net Assets Held in Trust for
Pension Benefits
$4,412,463$1,683,711$1,574,631$7,670,805
77
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2010
PoliceGeneral
Firefighters'Officers'Employees'
PensionPensionPension
Trust FundTrust FundTrust FundTotal
Additions
Contributions:
r$ 102,069279,910$ 148,167$ 530,146$
Employe
Employee 39,16773,816 91,915 204,898
State149,25359,992 209,245--
Total contributions502,979201,228240,082944,289
Investment income
Net appreciation in fair
value of investments461,259 174,774 94,967 731,000
Investment earnings75,01428,58542,517146,116
203,359536,273 137,484 877,116
Less investment expenses(33,603)(12,837)(23,444)(69,884)
Net investment income 502,670190,522114,040807,232
Total Additions
1,005,649391,750354,1221,751,521
Deductions
Refunds of contributions-- -- 16,639 16,639
Operating expenses25,82510,14329,18165,149
Total Deductions
25,82510,14345,82081,788
Net Increase
381,607979,824 308,302 1,669,733
Net Assets Held in Trust for
Pension Benefits
Net assets - beginning3,432,6391,302,1041,266,3296,001,072
Net assets - ending$4,412,463$1,683,711$1,574,631$7,670,805
78
STATISTICAL SECTION
STATISTICAL SECTION
This part of the Village of Tequesta's Comprehensive Annual Financial Report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information says about the Village overall financial
health.
ContentsPage
Financial Trends
Theseschedulescontaintrendinformationtohelpthereaderunderstandhowthe
79-83
Village's financial performance and well-being have changed over time.
Revenue Capacity
TheseschedulescontaininformationtohelpthereaderassesstheVillagemost
84-87
significant local revenue source, the property tax.
Debt Capacity
Theseschedulespresentinformationtohelpthereaderassesstheaffordabilityofthe
VillagecurrentlevelsofoutstandingdebtandtheTown'sabilitytoissueadditional
88-92
debt in the future.
Demographic and Economic Information
Theseschedulesofferdemographicandeconomicindicatorstohelpthereader
93-94
understand the environment within which the Village's financial activities take place.
Operating Information
Theseschedulescontainserviceandinfrastructuredatatohelpthereaderunderstand
howtheinformationintheVillage'sfinancialreportrelatestotheservicestheVillage
95-97
provides and the activities it performs.
Sources:
Unlessotherwisenoted,theinformationintheseschedulesisderivedfrom
the Comprehensive Annual Financial Reports for the relevant year.
VILLAGE OF TEQUESTA, FLORIDA
NET ASSETS BY COMPONENT
LAST EIGHT FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
2003 2004 2005 2006 2007 2008 2009 2010
Governmental Activities
Invested in capital assets, net of related debt $ 2,209,191 $ 921,889 $ 1,788,749 $ 4,515,096 $ 6,679,855 $ 6,959,332 $ 7,330,897 $ 7,525,570
Restricted 143,370 140,990 - -- -
Unrestricted 4,423,513 4,947,838 6,926,208 5,570,447 5,402,774 6,459,522 6,218,462 5,306,661
Total Governmental Activities Net Assets $ 6,632,704 $ 5,869,727 $ 8,714,957 $10,228,913 $12,223,619 $13,418,854 $13,549,359 $12,832,231
Business -Type Activities:
Invested in capital assets, net of related debt $10,561,209 $ 9,602,911 $10,815,151 $11,722,188 $14,513,500 $14,082,989 $13,713,525 $13,037,012
Restricted 317,193 322,818 317,102 396,369 328,544 - -- -
Unrestricted 4,843,781 5,901,624 4,604,463 4,867,905 3,046,229 3,581,512 3,997,271 4,975,318
Total Business -Type Activities Net Assets $15,722,183 $15,827,353 $15,736,716 $16,986,462 $17,888,273 $17,664,501 $17,710,796 $18,012,330
Primary government:
Invested in capital assets, net of related debt $12,770,400 $10,524,800 $12,603,900 $16,237,284 $21,193,355 $21,042,321 $21,044,422 $20,562,582
Restricted 317,193 322,818 317,102 539,739 469,534 - -- -
Unrestricted 9,267,294 10,849,462 11,530,671 10,438,352 8,449,003 10,041,034 10,215,733 10,281,979
Total Governmental Activities Net Assets $22,354,887 $21,697,080 $24,451,673 $27,215,375 $30,111,892 $31,083,355 $31,260,155 $30,844,561
Note: The Village began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003.
79
VILLAGE OF TEQUESTA, FLORIDA
CHANGES IN NET ASSETS
LAST EIGHT FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Business -type activities:
2003
2004
2005
2006
2007
2008
2009
2010
Expenses
3,881,752
3,975,766
4,026,027
4,187,257
4,139,784
3,760,426
3,907,950
3,989,517
Governmental activities:
278,442
155,537
142,788
198,993
188,709
215,163
226,498
223,421
General government
$ 1,299,812
$ 1,105,741
$ 1,361,013
$ 1,402,535
$ 1,391,654
$ 1,344,038
$ 1,501,344
$ 1,503,750
Public safety
3,649,803
4,138,374
4,691,063
5,577,243
5,634,834
5,784,245
5,807,477
6,313,835
Transportation
474,134
804,523
656,158
837,441
766,226
736,844
774,966
843,960
Leisure services
385,192
458,659
605,745
756,224
559,583
539,450
639,590
710,685
Interest on long-term debt
277,855
262,479
248,728
243,871
229,074
206,126
180,770
169,792
Total Governmental Activities Expenses
6,086,796
6,769,776
7,562,707
8,817,314
8,581,371
8,610,703
8,904,147
9,542,022
Business -type activities:
Water
3,881,752
3,975,766
4,026,027
4,187,257
4,139,784
3,760,426
3,907,950
3,989,517
Stormwater
278,442
155,537
142,788
198,993
188,709
215,163
226,498
223,421
Refuse and recycling
229,460
252,933
260,715
270,887
306,347
420,081
444,449
431,156
Community development
593,105
513,101
--
--
--
--
--
--
Total Business -Type Activities Expenses
4,982,759
4,897,337
4,429,530
4,657,137
4,634,840
4,395,670
4,578,897
4,644,094
Total Primary Government Program Expenses
$ 11,069,555
$ 11,667,113
$ 11,992,237
$ 13,474,451
$ 13,216,211
$ 13,006,373
$ 13,483,044
$ 14,186,116
Program Revenues
Governmental activities:
Charges for services:
General government
$ 352,901
$ 439,646
$ 260,647
$ 270,137
$ 278,215
$ 475,244
$ 302,182
$ 316,816
Public safety
477,041
538,056
1,040,427
1,121,642
1,006,947
863,391
783,774
899,639
Transportation
--
--
--
--
--
12
--
--
Leisure services
63,438
42,430
4,410
57,261
54,364
50,219
72,487
92,003
Operating grants and contributions
56,517
43,945
515,438
365,183
20,350
18,711
67,842
24,354
Capital grants and contributions
535,000
54,764
57,736
100,000
Total Governmental Activities Program Revenues
949,897
1,064,077
1,820,922
2,349,223
1,414,640
1,465,313
1,226,285
1,432,812
Business -Type Activities
Charges for services:
Water
4,082,459
3,931,562
4,037,674
4,090,268
3,850,508
3,463,564
3,863,439
4,076,132
Stormwater
297,843
303,450
298,188
301,993
303,273
299,729
314,569
313,126
Refuse and recycling
242,901
248,252
277,589
283,821
285,917
402,439
414,312
414,657
Community development
628,068
348,511
--
--
--
--
--
--
Operating grants and contributions
--
--
--
42,471
7,827
--
--
51,511
Capital grants and contributions
119,944
484,000
430,000
Total Business -Type Activities Program Revenues
5,251,271
4,831,775
4,733,395
5,202,553
4,877,525
4,165,732
4,592,320
4,855,426
Total Primary Government Program Revenues
$ 6,201,168
$ 5,895,852
$ 6,554,317
$ 7,551,776
$ 6,292,165
$ 5,631,045
$ 5,818,605
$ 6,288,238
Net (Expense) Revenue
Governmental activities
$ (5,136,899)
$ (5,705,699)
$ (5,741,785)
$ (6,468,091)
$ (7,166,731)
$ (7,145,390)
$ (7,677,862)
$ (8,109,210)
Business -type activities
268,512
(65,562)
303,865
545,416
242,685
(229,938)
13,423
211,332
Total Primary Government Net Expense
$(4,868,387)
$ 5,771,261
$ 5,437,920
$ 5,922,675
$ 6,924,0
$ 7,375,328
$ 7,664,439
$ 7,897,878
Note: The Village began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003.
80
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes:
Property taxes
Othertaxes
Franchise fees based on gross receipts
Unrestricted intergovernmental
Unrestricted investment earnings
Miscellaneous revenues
Gain (loss) on sale of capital assets
Transfers
Total Governmental Activities
Business -Type Activities
Unrestricted Investment earnings
Miscellaneous revenues
Gain (loss) on sale of capital assets
Transfers
Total Business -Type Activities
Total Primary Government
Change in net assets:
Governmental activities
Business -type activities
Total Primary Government
VILLAGE OF TEQUESTA, FLORIDA
CHANGES IN NET ASSETS (CONTINUED)
LAST EIGHT FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
2003 2004 2005 2006 2007 2008 2009 2010
$ 3,392,623 $ 3,781,095 $ 4,494,713 $ 5,166,754 $ 6,139,007 $ 5,661,200 $ 5,173,808 $ 4,643,816
1,093,877
1,089,781
1,084,827
1,087,759
1,157,128
1,123,272
1,285,063
1,315,006
350,423
372,212
367,778
419,929
477,711
462,296
466,541
435,766
520,921
558,069
622,457
679,001
815,828
783,034
702,616
717,673
89,532
79,483
214,588
392,961
404,816
152,602
8,725
71,067
123,740
83,126
641,901
173,362
106,647
37,621
171,614
208,754
6,400
(1,012,584)
1,981
(7,847)
(8,460)
710,151
60,300
60,300
120,600
5,569,669
4,942,722
8,136,415
7,982,047
9,161,437
8,340,625
7,808,367
7,392,082
70,706
75,846
164,163
280,665
321,718
86,811
(9,208)
49,973
10,917
82,576
151,487
479,145
397,708
39,955
42,080
40,229
681,912
3,850
(710,151)
4,820
7,847
8,460
(60,300)
(60,300)
(120,600)
771,382
170,732
(394,501)
704,330
659,126
6,166
32,872
90,202
6,341,051
5,113,454
7,741,914
8,686,377
9,820,563
8,346,791
7,841,239
7,482,284
432,770
(762,977)
2,394,630
1,513,956
1,994,706
1,195,235
130,505
(717,128)
1,039,894
105,170
(90,636)
1,249,746
901,811
(223,772)
46,295
301,534
$ 1,472,664 $ (657,807) $ 2,303,994 $ 2,763,702 2.896.517 971.463 $ 176,800 $ (415,594)
81
VILLAGE OF TEQUESTA, FLORIDA
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Total Other Governmental Funds 1 355 724 2 764 524 $1,463,173 $1,246,809 $ 3,360,609 $1,997,965 $1,016,893 $1,207,790 $1,554,484 $1,505,029
Note:
In fiscal year 2007, started a breakdown of unreserved of other governmental funds.
82
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
General Fund
Reserved
$ 202,585
$ 146,557
$ 43,745
$ 50,509
$ 56,759
$ 176,410
$ 47,493
$ 82,197
$ 383,766
$ 129,394
Unreserved
2,656,696
2,943,229
3,170,436
3,718,380
3,424,408
3,221,390
4,456,247
5,180,611
4,296,418
3,846,418
Total General Fund
2,859,281
3,089,786
3,214,181
3,768,889
3,481,167
3,397,800
4,503,740
5,262,808
4,680,184
3,975,812
All Other Governmental Funds
Reserved
122,627
1,030,617
155,645
341,722
823,675
143,370
196,426
12,752
29,508
117,838
Unreserved, reported in:
Special revenue fund
141,912
175,980
237,858
15,692
17,901
255,179
362,582
391,527
22,037
21,072
Capital Projects funds
1,091,185
1,557,927
1,069,670
889,395
2,519,033
1,599,416
457,885
803,511
1,502,939
1,366,119
Total Other Governmental Funds 1 355 724 2 764 524 $1,463,173 $1,246,809 $ 3,360,609 $1,997,965 $1,016,893 $1,207,790 $1,554,484 $1,505,029
Note:
In fiscal year 2007, started a breakdown of unreserved of other governmental funds.
82
Revenues
Taxes
Intergovernmental
Franchise fees
Charges for services
Intragovernmental
Grants
Licenses and permits
Interest
Fines and forfeitures
Miscellaneous
Rents and royalties
Impact fees
Total Revenues
Expenditures
Current:
General government
Public safety
Transportation
Leisure services
Capital outlay
Debt service:
Principal
Interest
Fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers -out
Other proceeds
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Debt Service as a Percentage of
Noncapital Expenditures
VILLAGE OF TEQUESTA, FLORIDA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
$ 4,102,022 $ 4,502,446 $ 4,836,923 $5,243,088 $ 5,579,540 $ 6,254,513 $ 7,296,135 $ 6,871,639 $ 6,458,871 $ 5,958,822
573,933 638,106 575,986 596,947 622,457 679,001 815,828 783,034 724,375 839,110
- - - - 367,778 419,929 477,711 462,296 466,541 435,766
302,072 382,650 362,663 477,513 490,995 507,702 526,922 574,937 597,269 687,332
252,756 327,270 337,490 341,700 254,898 262,700 273,150 280,100 292,990 307,740
- 142,207 56,517 43,945 515,438 900,183 90,398 76,448 37,583
83,702 108,429 103,564 93,601 549,884 631,521 401,704 299,059 211,371 279,835
193,208 84,693 83,166 79,483 214,588 392,961 404,816 152,602 8,725 71,067
47,351 68,758 58,467 57,413 352,254 34,825 111,080 40,779 34,877 21,721
46,116 46,423 80,494 83,126 289,647 175,343 52,899 38,242 80,603 62,009
- - - - - - 108,628 103,627 120,596 161,492
4,084 44,320 32,143 11,028 9,707 12,292 3,858 2,575 851
5,605,244 6,345,302 6,527,413 7,027,844 9,247,186 10,270,970 10,563,129 9,685,338 9,034,652 8,824,894
1,216,011 1,139, 653 1,289, 050 1,225,550 1,314,270 1,391,612 1,371,148 1,220,238 1,373,158 1,341,475
2,996,439 3,229,968 3,443,961 3,918,798 4,351,936 5,233,807 5,291,398 5,439,202 5,411,745 5,830,734
430,813 403,363 440,263 776,273 625,014 807,651 736,436 692,552 710,384 738,323
238,843 325,326 347,975 384,980 523,439 692,408 495,767 467,740 562,714 619,340
1,381,776 4,048,126 1,439,607 368,303 870,453 3,162,034 1,892,075 257,373 752,980 594,224
486,147 1,997,263 470,221 319,280 336,101 382,687 482,665 572,742 278,831 284,833
164,307 133,998 277,855 262,479 255,672 243,871 222,938 200,236 171,297 159,506
-- -- -- -- -- -- 6,136 5,890 9,473 10,286
6,914,336 11,277,697 7,708,932 7,255,663 8,276,885 11,914,070 10,498,563 8,855,973 9,270,582 9,578,721
(1,309,092) (4,932,395) (1,181,519) (227,819) 970,301 (1,643,100) 64,568 829,364 (235,930) (753,827)
2,624,652 5,358,147 464,954 326,010 3,771,617 2,023,368 685,644 924,300 1,642,813 273,549
(644,090) (4,038,447) (472,801) (334,470) (3,068,840) (1,963,068) (625,344) (803,700) (1,642,813) (273,549)
5,252,000 574,624 152,999 136,789
1,980,562 6,571,700 (7,847) 566,164 855,776 197,089 60,300 120,600
$ 671,470 $ 1,639,305 $(1,189,366 ) $ 338,345 $ 1,826,077 $(1,446,011 ) $ 124,868 $ 949,964 $(235,930) $(753,827)
11.76% 29.48% 11.93% 8.45% 7.99% 7.16% 8.20% 8.99% 5.40% 5.06%
83
VILLAGE OF TEQUESTA, FLORIDA
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
2001
$ 422,707,903
Centrally
$18,949,389 $
21,865,379
$ 278,827
Real Property
Personal Property
Assessed Property
Total
81%
2002
Estimated
Estimated
Estimated
21,621,054
Estimated
Assessed
Actual "Just"
Actual "Just"
Actual "Just"
78%
Actual "Just"
Value as a
Taxable Value of
Taxable Value of
Taxable Value of
Taxable Direct
Value of
Percentage of
Fiscal Year Ending Assessed Taxable
Assessed Taxable
Assessed Taxable
Assessed Tax
Taxable
Actual
September 30 Value Property
Value Property
Value Property
Value Rate
Property
Value
2001
$ 422,707,903
$ 522,797,351
$18,949,389 $
21,865,379
$ 278,827
$ 278,827
$ 441,936,119
6.7305
$ 544,941,557
81%
2002
468,569,608
601,222,227
18,641,610
21,621,054
279,734
279,734
487,490,952
6.7305
623,123,015
78%
2003
503,562,346
672,688,887
19,211,494
22,202,297
287,762
287,762
523,061,602
6.7305
695,178,946
75%
2004
583,470,308
789,428,369
19,488,528
22,409,087
326,474
326,474
603,285,310
6.4980
812,163,930
74%
2005
695,900,596
950,969,798
19,752,631
22,669,061
340,485
340,485
715,993,712
6.4980
973,979,344
74%
2006
804,692,586
1,159,686,579
20,372,762
23,286,106
340,839
340,839
825,406,187
6.4980
1,183,313,524
70%
2007
959,650,125
1,369,028,275
21,925,090
21,925,090
385,284
385,284
981,960,499
6.4980
1,391,338,649
71%
2008
992,309,662
1,410,466,330
24,589,752
27,733,698
489,214
489,214
1,017,388,628
5.7671
1,438,689,242
71%
2009
905,243,765
1,263,380,924
20,238,412
26,800,875
724,859
730,883
926,207,036
5.7671
1,290,912,682
72%
2010
813,253,151
1,087,782,592
19,867,770
25,872,707
713,541
718,791
833,906,426
5.7671
1,114,374,270
75%
Source: Palm Beach County Property Appraiser's office:
Form DR -422 "The 2009 Revised Recapitulation of the Ad Valorem Assessment Rolls of Tequesta, Palm Beach County, Florida"
84
VILLAGE OF TEQUESTA, FLORIDA
PROPERTY TAX RATES - ALL DIRECT AND OVERLAPPING GOVERNMENTS
(Per $1,000 of Assessed Value)
LAST TEN FISCAL YEARS
Direct Rates Overlapping Rates (1)
S. Florida Jupiter Fl. Island Children's County
Fiscal Year Ending Village County Everglades School County Water Mgmt. Inlet Nay. District Services Health Care
September 30 Rate County Debt Construction District Library District District (FIND) Council District
2001
6.7305
4.9362
0.3362
0.1000
8.9180
0.5403
0.6970
0.1091
0.0410
0.5000
1.0250
2002
6.7305
4.9351
0.3851
0.1000
8.9480
0.5403
0.6970
0.1012
0.0385
0.5703
1.1500
2003
6.7305
4.5000
0.3084
0.1000
8.7790
0.5403
0.5970
0.0916
0.0385
0.6228
1.1300
2004
6.4980
4.5000
0.2910
0.1000
8.5710
0.5833
0.5970
0.0916
0.0385
0.6902
1.1300
2005
6.4980
4.5000
0.2677
0.1000
8.4320
0.5807
0.5970
0.0916
0.0385
0.6902
1.1000
2006
6.4980
4.4500
0.2692
0.1000
8.1060
0.6250
0.5970
0.0916
0.1000
0.6887
1.0800
2007
6.4980
4.2800
0.1975
0.1000
7.8720
0.5989
0.5970
0.0916
0.0385
0.6199
0.9700
2008
5.7671
3.7811
0.2002
0.0894
7.3560
0.5441
0.5346
0.0909
0.0345
0.5823
0.8900
2009
5.7671
3.7811
0.1845
0.0894
7.2510
0.5427
0.5346
0.1000
0.0345
0.6009
0.9975
2010
5.7671
4.3440
0.2174
0.0894
7.9830
0.5518
0.5346
0.1253
0.0345
0.6898
1.1451
(1) Overlapping rates are those of local and county governments that apply to property owners within the Village of Tequesta.
Sources: Palm Beach County Property Appraiser's office
M,
VILLAGE OF TEQUESTA, FLORIDA
PRINCIPAL PROPERTY TAXPAYERS
MOST CURRENT YEAR (2009) AND NINE YEARS AGO
2009**
2000
Percentage of Percentage of
Taxable Total Village Taxable Total Village
Assessed Taxable Assessed Taxable
Taxpayer Value Rank Value Value Rank Value
Tamwest Realty, Inc (County Line Plaza)
$ 18,471,466
1
2.21%
$ 12,881,896
1
2.91%
Inland S.E. Tequesta, LLC (Teq. Shoppes)
9,000,000
2
1.08%
7,720,000
2
1.75%
Tequesta Investors LP
7,400,000
3
0.89%
Terrace Communities Tequesta LLC
7,070,621
4
0.85%
SLO ML LLC
4,853,449
5
0.58%
JMZ Tequesta Properties, Inc.
4,770,176
6
0.57%
Tequesta Country Club
4,158,957
7
0.50%
3,527,576
5
0.80%
ALS North America, Inc.
4,150,000
8
0.50%
Royal Tequesta LLC
3,946,354
9
0.47%
Tracy Thomas J.
3,796,045
10
0.45%
Lighthouse Cove apartments, Ltd.
7,300,954
3
1.65%
H & J Tequesta Assoc.
5,450,000
4
1.23%
AHC Purchaser Inc
2,978,496
6
0.67%
Jacksonville Tower Assoc.
2,250,385
7
0.51%
First Union National Bank of FL
1,978,062
8
0.45%
Oz of Tequesta, Inc.
1,672,374
10
0.38%
Tequesta Fashion Mall
1,800,000
9
0.41%
Total
$ 67,617,068
8.10%
$ 47,559,743
10.76%
** Palm Beach County Property Appraiser's Office is unable to provide 2010 top taxpayers due to software changing and report redesigning.
Due to this circumstances 2009 information is used.
Source: Palm Beach County Property Appraiser's Office 86
VILLAGE OF TEQUESTA, FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Collected within the
Fiscal Year Taxes Levied Fiscal Year of the Levy Collections Total Collections to Date (2)
Ended for the Percentage in Subsequent Percentage
September 30, Fiscal Year (1) Amount of Levy Years Amount of Levy
2001
$ 2,985,994
$ 2,970,942
99.5% $
15,052
$ 2,985,994
100.0%
2002
3,271,160
3,147,730
96.2%
5,816
3,153,546
96.4%
2003
3,520,466
3,388,176
96.2%
13,983
3,402,160
96.6%
2004
3,912,003
3,776,782
96.5%
4,125
3,780,907
96.6%
2005
4,650,578
4,486,224
96.5%
5,857
4,492,081
96.6%
2006
5,363,489
5,164,292
96.3%
5,543
5,169,835
96.4%
2007
6,355,149
6,134,038
96.5%
9,000
6,143,039
96.7%
2008
5,863,796
5,663,439
96.6%
4,401
5,667,839
96.7%
2009
5,341,529
5,162,044
96.6%
11,548
5,173,592
96.9%
2010
4,809,222
4,627,732
96.2%
--
4,627,732
96.2%
(1) The tax levied in a fiscal year is based on the taxable value of the prior year
(2) Includes discounts taken by property taxpayers.
Source: Palm Beach County Tax Collector's office.
VILLAGE OF TEQUESTA, FLORIDA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities
Business -type Activities
Total
Percentage
Fiscal Year Ending Revenue Notes Capital
Revenue Notes
Primary
of Personal Per
September 30 Bonds Payable Leases
Bonds Payable
Government
Income Capita
2001
$ 880,000
$ -- $
246,696
$ 7,640,000 $
58,669
$8,825,365
4.75% $
1,663
2002
790,000
5,000,000
162,856
7,495,000
36,723
13,484,579
7.24%
2,531
2003
695,000
4,838,352
353,636
7,345,000
13,827
13,245,815
7.10%
2,484
2004
595,000
4,669,648
363,065
7,185,000
645,170
13,457,883
6.81%
2,383
2005
490,000
4,493,579
461,032
7,020,000
524,852
12,989,463
6.53%
2,284
2006
380,000
4,309,827
508,886
6,850,000
504,852
12,553,565
6.29%
2,202
2007
259,846
4,118,053
338,150
6,670,000
437,952
11,824,001
4.61%
1,990
2008
--
3,917,908
225,398
--
6,929,640
11,072,946
3.39%
1,877
2009
--
3,709,027
155,448
--
6,668,462
10,532,937
3.03%
1,794
2010
--
3,491,028
88,613
--
6,405,528
9,985,171
3.04%
1,774
M.
VILLAGE OF TEQUESTA, FLORIDA
RATIO OF NET OUTSTANDING DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS
(2)
5,307
$ 441,936,119
$ 8,825,365 $
141,912
$ 8,683,453
Assessed
(A)
(B)
(A - B)
Ratio of Net
Net
Value of
Gross
Debt Service
Net
O/S Debt to
Outstanding
Fiscal Year Ending (1) Taxable
Outstanding
Funds
Outstanding
Value of
Debt
September 30, Population Property
Debt
Available
(O/S) Debt
Taxable Property
Per Capita
2001
5,307
$ 441,936,119
$ 8,825,365 $
141,912
$ 8,683,453
2002
5,327
487,490,952
13,484,579
141,913
13,342,666
2003
5,333
523,061,602
13,245,815
225,676
13,020,139
2004
5,648
603,285,310
13,457,883
272,801
13,185,082
2005
5,686
715,993,712
12,989,463
294,444
12,695,019
2006
5,702
825,406,187
12,553,565
378,680
12,174,885
2007
5,942
981,960,499
11,824,001
482,726
11,341,275
2008
5,898
1,017,388,628
11,072,946
369,490
10,703,456
2009
5,872
926,207,036
10,532,937
--
10,532,937
2010
5,629
833,906,426
9,985,171
--
9,985,171
(1) U.S. Census Bureau, 2010 Census
(2) Form DR -422 "Certificate of Final Taxable Value"
1.96%
$ 1,636
2.74%
2,505
2.49%
2,441
2.19%
2,334
1.77%
2,233
1.48%
2,135
1.15%
1,909
1.05%
1,815
1.14%
1,794
1.20%
1,774
o.
Debt Limit
Total Net Debt Applicable to Limit
Legal debt margin
Total Net debt Applicable to Limit
as a Percentage of Debt Limit
VILLAGE OF TEQUESTA, FLORIDA
LEGAL DEBT MARGIN INFORMATION
LAST EIGHT FISCAL YEARS
SEPTEMBER 30, 2010
Total Assessed Value (1) $ 833,906,426
Legal Debt Margin
Debt limitation - 10% of total assessed value (2) 83,390,643
Total bonded debt outstanding -- --
Less amount in debt service fund --
Total Debt Applicable to Limitation --
Legal Debt Margin $ 83,390,643
Fiscal Year
2003 2004 2005 2006 2007 2008 2009 2010
$ 59,606,928
$71,463,973
$ 82,565,448
$ 98,162,738 $ 101,695,653 $ 93,130,772 $ 83,442,520 $ 83,390,643
470,324
322,199
195,556
1,023 -- -- -- --
59,136,604
$71,141,774
$ 82,369,892
$ 98,161,715
$ 101,695,653
$ 93,130,772
$83,442,520 $
83,390,643
0.79%
0.45%
0.24%
0.00%
0.00%
0.00%
0.00%
0.00%
(1) Form DR -422 "Certificate of Final Taxable Value"
(2) Village of Tequesta Charter Section 5.02 Limitations
Note: The Village began to report this information in fiscal year 2003.
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VILLAGE OF TEQUESTA, FLORIDA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
SEPTEMBER 30, 2010
Estimate
Estimate Share of
Net Percentage Direct and
Debt Applicable to Overlapping
Governmental Unit Outstanding Tequesta Debt
(a) (b)
Debt repaid with property taxes
Palm Beach County
P.B.C. School Board
Subtotal, overlapping debt
Village of Tequesta direct debt
Total direct and overlapping debt
(a) Sources: Palm Beach County and PBC School Board
250,470,000 0.59% $ 1,477,773
29,555,000 0.59% 174,375
1,652,148
3,579,641
$ 5,231,789
Note: For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values.
Applicable percentages were estimated by determining the portion of the Village taxable assessed value and dividing it by the PBC taxable
assessed value. (Data provided by the PBC Property Appraiser's Office)
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Village of Tequesta. This schedule
estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the Village of
Tequesta. This process recognizes that, when considering the Village's ability to issue and repay long-term debt, the entire debt burden
borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident and
therefore responsible for repaying the debt of each overlapping government.
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VILLAGE OF TEQUESTA, FLORIDA
PLEDGED- REVENUE COVERAGE
LAST TEN FISCAL YEARS
Net
Fiscal Pledged Less: Available Debt Service (2)
Year Revenues (1) Expenditures Revenue Principal Interest Coverage
2001
$ 498,959
$ 139,095
$ 359,864
$ 80,000
$ 59,095
2.59
2002
441,409
144,461
296,948
90,000
54,461
2.06
2003
448,946
143,585
305,361
95,000
48,585
2.13
2004
464,973
142,678
322,295
100,000
42,678
2.26
2005
459,873
141,490
318,383
105,000
36,490
2.25
2006
524,468
140,135
384,333
110,000
30,135
2.74
2007
593,649
143,370
450,279
120,154
23,216
3.14
2008
515,700
275,836
239,864
259,846
15,990
0.87
2009
--
--
--
--
--
-
2010
--
--
--
--
--
-
Note: Details regarding the Village's outstanding debt can be found in the notes to the financial statements.
(1) Pledged revenues include franchise fees, licenses and permits from Fund 101.
Fund 101 closed in fiscal year 2009.
(2) Debt paid in full in fiscal year 2008.
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VILLAGE OF TEQUESTA, FLORIDA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Per
Capita
Fiscal Population Personal Personal Median Unemployment
Year (1) Income (2) Income (2) Age (3) Rate (4)
2001
5,307
$ 185,607,018
$ 34,974
47.5
5.5%
2002
5,327
186,306,498
34,974
47.5
5.1%
2003
5,333
186,516,342
34,974
47.5
6.2%
2004
5,648
197,533,152
34,974
47.5
5.7%
2005
5,686
198, 862,164
34,974
47.5
3.1%
2006
5,702
199,421,748
34,974
47.5
3.7%
2007
5,942
256,397,300
43,150
47.5
3.3%
2008
5,898
326,224,278
55,311
47.5
7.3%
2009
5,872
347,311,184
59,147
47.5
9.7%
2010
5,629
328,497,182
58,358
47.5
11.4%
Sources:
(1) U.S. Census Bureau, 2010 Census
(2) US Department of Commerce, Bureau of Economic Analysis, Regional Economic
Information System, April 2010
(3) 2000 U.S. Census Data. 2010 Census data was not updated at the time when report
was prepared.
(4) Florida Agency for Workforce Innovation, Labor Market Statistics Center,
Local Area Unemployment Statistics Program
93
VILLAGE OF TEQUESTA, FLORIDA
PRINCIPAL EMPLOYERS - PALM BEACH COUNTY (1)
CURRENT YEAR AND NINE YEARS AGO
2010
2001
Percentage of Percentage of
Total County Palm Beach Total County
Employer Employees Rank Employment Employees Rank Employment
School Board of Palm Beach County
Palm Beach County
Tenet Healthcare Corporation
HCA (Hospital Corporation of America)
Florida Power & Light
Wackenhut Corporation
Florida Atlantic University
Bethesda Memorial Hospital
Veterans Health Administration
Boca Raton Resort & Club
State of Florida
Federal Government
Columbia PB Healthcare System, Inc.
Intracoastal Health Systems, Inc.
Motorola, Inc.
Boca Raton Resort Community Hospital
21,718
1
3.98%
11,381
2
2.08%
51127
3
0.94%
4,150
4
0.76%
3,658
5
0.67%
3,000
6
0.55%
2,776
7
0.51%
2,300
8
0.42%
2,205
9
0.40%
2,200
10
0.40%
J2i,J 1J
18,000
1
3.33%
9,000
2
1.66%
2,300
8
0.43%
1,850
9
0.34%
8,600
3
1.59%
5,200
4
0.96%
4,000
5
0.74%
3,200
6
0.59%
2,500
7
0.46%
1,600
10
0.30%
10.72% 56,250
(1) Source: Business Development Board of Palm Beach County. Data is for Palm Beach County, Florida.
Employment information for the Village is not available.
10.40%
VILLAGE OF TEQUESTA, FLORIDA
FULL-TIME EQUIVALENT VILLAGE GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
LAST NINE FISCAL YEARS
Business -Type Activities
Water
14.0
Full-time Equivalent Employees as of September 30,
14.5
14.0 15.0
Function/Program
2002
2003
2004
2005
2006
2007
2008
2009
2010
1.0
1.0
1.0
Community development (1)
3.5
3.0
2.5
- -
-
-
Governmental Activities
-
Total Business -Type Activities
18.0
15.5
17.0
14.0 16.0
16.5
16.0
17.0
General government
8.0
8.5
12.0
11.5
10.5
9.5
15.0
15.0
10.0
Public safety
45.5
51.0
45.0
45.0
46.0
51.0
50.0
49.0
50.0
Transportation
2.0
2.5
-
-
3.0
4.0
4.0
4.0
4.0
Leisure services
1.5
2.5
2.0
2.0
3.0
3.0
3.0
3.0
3.0
Total Governmental Activities
57.0
64.5
59.0
58.5
62.5
67.5
72.0
71.0
67.0
Business -Type Activities
Water
14.0
12.5
14.5
14.0 15.0
15.5
15.0
16.0
15.0
Stormwater
0.5
-
-
- 1.0
1.0
1.0
1.0
1.0
Community development (1)
3.5
3.0
2.5
- -
-
-
-
-
Total Business -Type Activities
18.0
15.5
17.0
14.0 16.0
16.5
16.0
17.0
16.0
Total Primary Government
75.0
80.0
76.0
72.5 78.5
84.0
88.0
88.0
83.0
Note: The Village was able to access this data from 2002.
Source: Village of Tequesta Human Resource Dept
Notes: A full-time employee is scheduled to work 2,088 hours per year (including vacation and sick leave). Full -time -equivalent employment is
calculated by dividing total labor hours by 2,088.
(1) Community Development activities (planning, building and code enforcement) were accounted for in an enterprise (business -type activity) fund
until fiscal year 2005 when the fund was closed. Planning and building activities are currently accounted for in the General Fund, and code
enforcement as part of the function of Public Safety.
95
VILLAGE OF TEQUESTA, FLORIDA
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST FIVE FISCAL YEARS
20062007200820092010
Governmental Activities
General governmen
t
Registered voter 4,0074,007 4,439 4,612 4,505
s
Public safety:
1916 17 18 17
No. of full-time certified police officers
No. of calls receive 3,5003,300 3,535 3,533 3,178
d
No. of arrests199 238 224 251 296
No. of parking violation 148162 171 131 124
s
853817 965 887 881
No. of incident numbers issued
Fire department:
1916 20 21 21
No. of full-time certified firefighters
No. of emergency response 1,1221,254 1,143 1,189 1,043
s
No. of transports622 521 621 651 562
No. of fires extinguishe 601632 522 538 481
d
No. of inspections326 412 435 476 480
Building, zoning:
9981,049 906 784 812
No. of building permits issued
No. of building inspections conducte 2,5812,214 2,039 1,771 1,579
d
Leisure services:
No. of Spring Classes-- -- 8 8 10
No. of Summer Classes-- -- 4 5 4
No. of Movies-- -- 4 4 3
Business-Type Activities
Water:
No. of customer 4,7224,612 4,968 4,983 4,982
s
2.782 mg2.349 mg2.351 mg2.175 mg2.175 mg
Average daily consumption
Note: The Village began to report this information in fiscal year 2006, as prior information is not available.
96
VILLAGE OF TEQUESTA, FLORIDA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST FIVE FISCAL YEARS
Function/Program20062007200820092010
Governmental Activities
General government:
Municipal center0011 1
Public safety
Police:
No. of stations1111 1
No. of patrol units121279 15
Fire:
No. of stations1111 1
No. of ambulances2222 3
No. of pumpers3322 3
Transportation:
Miles of street lane miles484343*2424
No. of bridges11 1 11
Leisure services
No. of parks3334 4
No. of park acreage48484850 53
No. of playgrounds3322 2
No. of baseball/softball diamonds 3333 3
No. of skate-parks1111 1
Business-type activities:
Water:
Miles of water mains50757272 73
No. of fire hydrants550430430430 430
Storage capacity (thousands of gallons)3,250 3,250 3,250 3,250 3,250
Note: The Village began to report this information in fiscal year 2006, as prior information is not available.
* This report is presenting the revised method in calculating the miles of street lane
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Page Intentionally Left Blank
COMPLIANCE SECTION
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED
ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITHGOVERNMENT AUDITING STANDARDS
Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
We have audited the financial statements of the governmental activities, the business-type
activities, each major fund and the aggregate remaining fund information of the Village of
Tequesta, Florida (the Village) as of and for the year ended September 30, 2010, which
collectively comprise the Village’s basic financial statements and have issued our report thereon
dated April 28, 2011. We conducted our audit in accordance with auditing standards generally
accepted in the United States of America and the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the United
States.
Internal Control over Financial Reporting
In planning and performing our audit, we considered the Village’s internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our
opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the Village’s internal control over financial reporting. Accordingly, we do not
express an opinion on the effectiveness of the Village’s internal control over financial reporting.
Adeficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct misstatements on a timely basis. A material weakness is a
deficiency, or combination of deficiencies, in internal control, such that there is a reasonable
possibility that a material misstatement of the Village’s financial statements will not be
prevented, or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and was not designed to identify all deficiencies in
internal control over financial reporting that might be deficiencies, significant deficiencies or
material weaknesses. We did not identify any deficiencies in internal control over financial
reporting that we consider to be material weaknesses, as defined above.
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Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Village’s financial statements are
free of material misstatement, we performed tests of its compliance with certain provisions of
laws, regulations, contracts, and grant agreements, 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 or other matters that are required to be reported under Government Auditing
Standards.
This report is intended solely for the information and use of the Mayor, Village Council,
management, and regulatory agencies and is not intended to be and should not be used by anyone
other than these specified parties.
Fort Lauderdale, FL
April 28, 2011
99
MANAGEMENT LETTER IN ACCORDANCE WITH THE RULES OF THE
AUDITOR GENERAL OF THE STATE OF FLORIDA
Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
We have audited the accompanying financial statements of the governmental activities,
business–type activities, each major fund, and the aggregate remaining fund information of the
Village of Tequesta, Florida (the Village) as of and for the year ended September 30, 2010, and
have issued our report thereon dated April 28, 2011.
We conducted our audit in accordance with auditing standards generally accepted in the United
Government
States of America and the standards applicable to financial audits contained in
Auditing Standards issued by the Comptroller General of the United States. We have issued our
Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance
and Other Matters. Disclosures in that report, which is dated April 28, 2011, should be considered
in conjunction with this management letter.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor
General, which governs the conduct of local governmental entity audits performed in the State of
Florida. This letter includes the following information, which is not included in the
aforementioned auditor’s report;
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or
not corrective actions have been taken to address significant findings and recommendations
made in the preceding annual financial audit report. There were no findings in the
preceding annual financial report.
Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review of
the provisions of Section 218.415, Florida Statutes, regarding the investment of public funds.
In connection with our audit, we determined that the Village complied with Section 218.415,
Florida Statutes.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the
management letter any recommendations to improve financial management. In connection
with our audit, we did not have any such recommendations.
Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address violations of
contracts or grant agreements, or abuses that have occurred, or are likely to have occurred,
that have an effect on the financial statements that is less than material but more than
inconsequential. In connection with our audit, we did not have any such findings.
100
Section 10.554(1)(i)5., Rules of the Auditor General, provides that the auditor may, based
on professional judgment, report the following matters that have an inconsequential effect
on the financial statements, considering both quantitative and qualitative factors: (1)
violations of provisions of contracts or grant agreements, fraud, illegal acts, or abuse, and
(2) deficiencies in internal control that are not significant deficiencies. In connection with
our audit, we did not have any such findings.
Section 10.554(1)(i)6., Rules of the Auditor General, requires that the name or official title
and legal authority for the primary government and each component unit of the reporting
entity be disclosed in this management letter, unless disclosed in the notes to the financial
statements. The Village was incorporated in 1957 By Laws of Florida 57-1915. There are
no component units related to the Village.
Section 10.554(1)(i)7.a., Rules of the Auditor General, requires a statement be included as
to whether or not the local governmental entity has met one or more of the conditions
described in Section 218.503(1), Florida Statutes, and identification of the specific
condition(s) met. In connection with our audit, we determined that the Village did not meet
any of the conditions described in Section 218.503(1), Florida Statutes.
Section 10.554(1)(i)7.b., Rules of the Auditor General, requires that we determine whether
the annual financial report for the Village for the fiscal year ended September 30, 2010,
filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a),
Florida Statutes, is in agreement with the annual financial audit report for the fiscal year
ended September 30, 2010. In connection with our audit, we determined that these two
reports were in agreement.
Section 10.554(1)(i)7.c. and 10.556(7), Rules of the Auditor General, we applied financial
condition assessment procedures. It is management’s responsibility to monitor the
Village’s financial condition, and our financial condition assessment was based in part on
representations made by management and the review of financial information provided by
same. The assessment was done as of the fiscal year end. There were no findings that
identified deteriorating financial conditions.
Pursuant to Chapter 119, Florida Statutes, this management letter is a public record and its
distribution is not limited. Auditing standards generally accepted in the United States of America
require us to indicate that this letter is intended solely for the information of the Mayor, Village
Council, management, and the Florida Auditor General, and is not intended to be and should not
be used by anyone other than these specified parties.
Fort Lauderdale, FL
April 28, 2011
101