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Home My WebLink AboutDocumentation_Regular_Tab 23_04/14/2005 INTEROFFICE MEMORANDUM TO: VILLAGE MANAGER MICHt�EL R. COUZZO, JR. FROM: COMM(JNITY DEVELOPMENT JEFFERY C. NEWEI,L SUBJECT: iST 12EADII�iG COMPREHENSIVE PLAN AMENDMENTS DATE: 3/28/2005 CC: Ordinance Nurnber 596 Amendin� Com�rehensive Plan The purpose af this ordinance is ta amend the comprehensive plan to incorporate the properties located on north us highway one into the jurisdictionai boundaries of the Village of Tequesta. Advisory Local Planuing Agency Hearing: The Advisory LPA held a public hearing to comply with Florida Statues 163 as it pertains to small scales amendznents. One public hearing is required for the purpose to provide xhe general public an opportunity to express support or opposition to the amendment of the comprehensive plan to incorporate the annexed properties. On Maxch 16, 2005 the Advisory Local Planning Agency open the hearing to �e public. No comments were brought forward on Ordinance I�Tumber 59G to amend the comprehensive plan to incorporate the recently annexed properties into the jurisdictional houndaries of the Village of Tequesta. Village Council is the legisl�tive authority and is empowered to enact a,n ordinance into law. The enacting of this ordinance will complete the final step in the process of annexation of the properties located on the east side of us highway orie loeated north of Canal Court into the jurisdictional boundaries of the Village of Tequesta. Ordinance Number �97 Arnending the Zoning Ma� to a�pl� a Zoning Designation The purpose of this ordinanee is to amend the Village af Tequesta's zoning map to apply a zoning designation of C-2 Community Commercial to a portion of real property located on the east side of us highway ane north of Canal Court containing appro�mately 1.33 acres. Advisor� Local Plannin ency Hearing: The Advisory LPA held a public hearing to comply with Florida Statues 163 as it pertains to sma11 scales amendments. One public hearing is required for the purpose to provide the general public an opportunity to express support or opposition to the proposed amendment to amend the official zoning map of the Village of Tequesta. On March 16, 2005 the Advisory Loca1 Planning Agency open the hearing to the public. No comments were brought forward on Ordinance Number 597 to amend the official zoning map of the Village of Tequesta, to apply a zoning designation of C-2 Community Comm�rcial to a portion of real property located on the east side of us highway one north of Cana1 Court containing approximately 1.33 acres. Village Council is the iegislative authority and is empowered to enact an ordinance into law. The enacting of this ordinanee will complete the final step in the pracess of amending the official zoning map of the Village of Tequesta applying a zoning designation of G2 Community Commereial to a portion of real property located on the east side of us highway one north of Canal Court containing approximately 1.33 acres. Staff recoanmends the enacting inta law Ordinance Number 596 and Ordinance Number 597. 2 AGENDA VII,LAGE OF TEQUESTA PLANNIl�G AND ZONIlVG ADVISORY BOARD & LOCAL PLA,NNING AGENCY HEARIlVG WEDNESDAY, MARCH 16, 2005 VII,LAGE OF TEQUESTA RECREATION CENTER 399 SEABROOK ROAD TEQUESTA, FLORIDA 33469 Il�IMEDIATELY FOLLOWING OPENII�G OF REGUALR PLANNING AND ZOrRNG MEETING AT 630 P.M. I. CALL TO ORDER AND ROLL CALL FOR LOCAL PLANNING AGENCY AND PLANNING AND ZONING ADVISORY BOARD II. APPROVAL OF AGENDA III. HEARINGS A. ORDINANCE NO. 596 - LOCAL PLANNING AGENCY HEARING - AN ORDINANCE OF THE VILLAGE OF COUNCIL OF THE VILLAGE OF TEQUESTA, ' PALM BEACH COUNTY, FLORIDA, AMENDING THE COMPREHENSNE PLAN OF THE VILLAGE OF TEQUESTA, FLORIDA IN ACCORDANCE WITH CHAPTER 163, FLORIDA STATUES "THE LOCAL GOVERNMENT COMPREHENSNE PLAI�iNING AND LAND DEVELOPMENT REGULATION ACT", AS AMENDED, AND CHAPTERS 9J-5 AND 9J-11, FLORIDA ADMINSTRATIVE CODE, ADOPTING A SMALL SCALE DEVELOPMENT AMENDMENT TO THE FUTURE LAND USE MAP IN THE AREA DESIGNED; APPLYING A COMMERCIAL I.AND � USE CLASSIFICATION TO A PORTION OF REAL PROPERTY LOCATED ON THE EAST SIDE OF U.S. HIGHWAY ONE NORTH OF CANAL COURT, CONTAINING APPROXIMATELY 1.33 ACRES; PROVIDING REPEAL OF ALL ORDINANCBS IN CONFLICT; PROVIDING FOR CODIFICATION; PROVIDING AN EFFECTIVE DATE. L CHAIR ANNOUNCES LOCAL PLAI�TNING AGENCY HEARING IS OPEN 2. COMMENTS FROM STAFF 3. PUBLIC COMMENTS 4. LPA COMMENTS S. CHAIRS ANNOUNCES LOCAL FLAI�iNING AGENCY IS CLOSED 6. RECOMMENDATIONS B. ORDINANCE NO. 597 - LOCAL PLANNING AGENCY HEARING - AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, PLAM BEACH COUNTY, FLORIDA, AMENDING THE OFFICIAL ZONING ORDINANCE OF THE VILLAGE, AT ARTICLE V OF CHAPTER 78 OF TEQUESTA CODE OF ORDINANCES, ESTABLISHMENTS OF DISTRICTS AND OFFICIAL ZONING MAP, BY AMENDING THE ZOI�TING MAP TO APPLI' A ZONII�TG DESIGNATIQN OF G2 COMMLJNITY COMMERCIAL TO A PROTION OF REAL PROPERTY LOCATED ON THE EAST SIDE OF U.S. HIGHWAY ONE, NORTH OF CANAL COURT CONTAII�IING APPROXIMATELY 1.33 ACRES; PROVIDING FOR A LEGAL DESCRIPTION OF THE PROPERTY; PROVIDING FOR SEVERABILTTY, AND PROVIDING AN EFFECTIVE DATE. 1. CHAIR ANNOUNCES LOCAL PLANNING AGENCY HEARING IS OPEN 2. COMMENTS FROM STAFF 3. PUBLIC COMMENTS 4. LPA COMMENTS 5. CHAIRS ANNOUNCES LOCAL PLANNING AGENCY IS CLOSED 6. RECONIMENDATIONS IV. ADJOI:TRNMENT TO REGULAR PLANNING AND ZONING ADVISORY BOARI) MEETING IMMEDIATELY FOLLOWING � PALM BEACH NEWSPAPERS, INC. � The Palm Beach Post 2751 S. Dixie Hwy., West Palm Beach, FL 33405 Phone: (561) 820-3106 Fax: (561) 820-4340 � � FED ID # 58-1633719 � legais C� pbpost.com Legai Advertising Invoice Account #: 293884 Advertising Deadlines Ad # 2822138 Publish eadline Monday Friday 3PM. � Description: Not: Ordinance #596 � Tuesday Friday 3PM � Wednesday Monday 3PM Size: 9.5 ". Thursday Monday 3RM Amount: $256.50 Saturday Thursday PM M Sunday Thursday 3PM Published: March 6, 2005 �_ Viilage of Tequesta Viffage Clerk's Offlce � PO Box 3273 . � . Teques�a, FL 33469-0273 � ` ��t�A� 7 .� P�.1�.,.�,,, ".. � �w aa '� ..�. ��v � � � _ "� a�_,_,.�� , . v � EP� � � . �` ' �lN��=APP � THE PALM BEACH POST Published Daily and Sunday West Palm Beach, Palm Beach County, Florida =:-:_: - Gy �_��t�,�:";;::. i:��;. �` - �:� . PROOF OF PUBLICATION �.' STATE OF FLORIDA � COUNTY OF PALM�BEACH � ��:� Before the undersigned authority personally appeared Kristi Morrow, who on oath `�; says that she is Customer Service 5upervisor of The Palm Beach Post, a daily and Sunday newspaper, published at West Palm Beach in Pa1m Beach County, Florida; that '_� the atta.ched copy of advertising for a ice in the matter of Ordinance #596 � was published in said newspaper in the issues of 14farch 6. 2005. Affiant further - says that the said The Post is a newspaper published at West Palm Beach, in said Palm ��;_ Beach County, Florida, and that the said newspaper has heretofore been continuously � published in said Palm Beach County, Florida, daily and Sunday and has been:entered �. as second class mail matter at the post office in West Palm Beach, in said Palm Beach _ Counfy, Florida, for a period of one year next preceding the first publication of the � attached copy of advertisement; and affianf further says that she/he has neither paid nor �+^' promised any person, firm or corporation any discount rebate, commission or refund �;e:: � for the purpose of securing tlus advertisement for publicat�on in the said newspaper. � � :>: �. Sworn to and subscribed before 7"` day of Marc A.D. 2005 ''�`=`: ' :S t y ' " � - � - � � '. . Personally known C�X or Produced Identification �. t }�; �� Type of Identificafiion Produced " � ; „xi :;�:.: .r x � ' 4 :;;. z;� ,.. .,,,1�a�en 1�� 1�.��;��b:��. �x' ,,t,t.. K:, �. p R� ay��. Ssioa�1�S33��vv5 r�; :�? �: `� =� � h0'V, 1�,. Gs3 ;., ,:;�, .. ; � pires. �'� ;, °= � Son�ed Thru .� .:;� £ , y :,�,,. '�� •�.��' g Co. 1' ;r°; `'Op� n A.tlandC $ondin � . "�::1: <.�;:.� <=- : � 3: � " .._ . ' .�� .��i'i . ie: .f,�3�':. � - . - . .. ,r` h �'• �� y �� _ �� , .ty' 1 �.`I . . . � . • ' a�`� _ .�� a � r;' ' . �_.. ��vi .' $ i y ' N� : 1 . Pv � f {� • ' . . . . . . ... . _. . a . �#�:f: PALM BEACH NEWSPAPERS, INC. The Palm Beach Post 2751 S. Dixie Hwy., West Palm Beach, FL 33405 � Phone: (561) 820-3106 Fax: (561) 820-4340 � FED ID # 58-1633719 legals @ pbpost.com Legal Advertising Invoice Account #: 293884 Advertising Deadlines Ad # 2822135 Publish Deadline Monday Friday 3PM Description: Not: Ordinance #597 � Tuesday Friday 3PM Wednesday Monday 3PM Size: 8.75 " Thursday Monday 3PM Friday Wednesday 3PM Amount: $23625 Saturday Thursday 3PM Sunday Thursday 3PM Published: March 6, 2005 Vitlage of Tequesta Viilage Clerk's Office � P0 � PO Box 3273 Tequesta, FL 33469-0273 � E r li�1t �� I�CCi: s . O �... � � . v � t3E .Et�i' �;D ' DAT � �INA�l��AP� THE PALM BEACH POST � � _ � � �. Published Daily and Sunday � ,��r . West Palm Beach, Palm Beach County, Florida �+ �� _.: . :. ��... .. _� - `.� �r "; -�. �, �, , ` PROOF OF PUBLICATION ° ; : � � ' , , : �� , jy r- f�� STATE OF FLORIDA - � � . ` � • ," .�" 4 '� �=�� COUNTY OF PALM BEACH A g = Before the undersigned authority personally appeared Kristi Morrow, who on oath '`'; says that she is Customer Service Supervisor of The Palm Beach Post, a daily and A� '�° �i Sunday newspaper, published at West Palm Beach in Pa1m Beach County, Florida; that � � �: the attached copy of advertising for a otice in the matter of Ordinance #597 �: was published in said newspaper in the issues of March 6. 2005. Affiant further - " says that the said The Post is a newspaper published at West Palm Bea.ch, in said Palm Beach County, Florida, and that the said newspaper has heretofore been continuously � published in said Palm Beach County, Florida, daily and Sunday and has been entered � ' as second class mail matter at the post office in West Palm Beach, in said Palm Beach ' ; County, �Florida, for a period of one year next preceding the first publication of the ; .`i. �' �� t Y: attached copy of advertisement; and affiant further says that she/he has neither paid nor �` promised any person, firm or corporation any discount rebate, commission or refund for the purpose of�securing this advertisement for publication in the said newspaper. ° '° L. ,, :� - . #? ; G. �: :�,�- "�� . :i�:�h�',. '.p,�[f:: Sworri to and subscribed before 7�' day of Marc A.D. 2005 ��•�� ; : . �:� % � � 3 Personally known � or Produced Identification `.� .- Type of Identification Produced . . � _� ,• ti � � ' _ ��ntHr x'�f « t� �� }��: 3"y � . �� RY PU £�fi3.��A :�1� aC ux .,• � ��.,�: :$��' e�� •� '::, cH� Re�V, ls, 2c?t'rd �`:`� ',��>! �ino`�'� Atlaude Bo cling C., Ing. �; � : ... i ., � � �: �� _ �� 1. s . i` , e R j � _ ��: ��, ��, ; . . �6 :-`� � ::�;r�� ` ; `°'� k: ORDINANCE NO. 596 AN ORDINANCE OF TI-� VII.,LAGE COUNCII, OF THE VII.LAGE OF TE(�UESTA, FALAtI BEACH CQ�N�Y, FLQRIDA, ASvJ�INEi TF� COMPREHENSI«E FLAN OF '1 HE VILLAGE OF TEQUESTA, FLE}RIDA IN ACCORDANCE WITH CHAPT'ER 163, FLORIDA �TATUT�S "THE LOCAL GOVERNMENT COMPREHENSIVE PLANNING AND LAND DEVEL4PMENT REGULATIQN ACT", AS AMENDED, AND CHAPTERS 9J 5 AND 9�-11, FI..4RIDA AD11+�STRATItt� CaII� AI3(}PTIl�� A SI��ALL SeALE I}EVELOPl�+iF,NT AM�NDMENT` TQ � FU�T[JRE LAND USE MAP IN THE AREA DESiGNATED; APPL3�Il�TG A COMNiERCIAL LAI�IU US� CLA�SIFICATION TO A PORT'ION O� R�AL PROPEi�TY LOCATED ON TI� EAST SIDE OF U.S. HIGHWAY OI�TE NORTH OF CANAL CDURT, CQNTAINING AFFRQ�IVSATEL� 1.33 AGRES; PRQVIDIl�TG A LEGAL DESGRIPTIOI�T OF TH� PROPERTY; PR€3VIDI�G REPBAL O� ALI, ORDINANC�S II�I CO�ICT; PR4VIDI�tG FOR GODIFICA`TIOI�T; PROVIDING AN E�C`TI�E DATE. WHEREAS pursuant to Section 1E3.3161 e,� seq., Florida Statues, being the Loca1 Gaver�t Cnmp�sive Planning a�i Lanci Develc��t Reg�Iaticm Act, �te Villa�e of Tequesta, ma� adc�pt a�ndme�ts ta the Comgrehensive Flan; and WI�R�AS, pursuant to Section 163.3179, Flc�rida Statues, the Village may make small scale development amendments pursuant to fihe provisions of said staiu�; and WHEREAS, tbe Planning and Zoning Advisory BQard sitting as the Locat Pla�ning Agenc3' of the Y'iltage of Tequesta I� I�kl a p�bl�e hearing to make reeo�nme�tit� to the Y'1llage Council and. has recommended the advgtic�n of fhe amendments to the Comprehensive Plan conta�ined herem; and WHEREAS; the Village �ouncil wishes to a�prove and adopt a small scale amendrnent � the Fut�rre Lanci Use 14F�p af t� V�age as �a11y described ou E��it "A" a�l as set farth on Exh�brt `B" aftached here�o. NOW TI�ItEFORE, BE TT ORDAiI+IBD BY T� VII..LAG� CUUNCIL Q� THE VILLAGE OF TEQUESTA, PALM BEACH COi�NT'I�, FLORIDA, AS FOLLOWS: Seetion 1. The Village Council of the Yillage of Tequesta, Florida, d� hereby � d� Comgre�nsive Plan of the V'iltag� ��rdaac� v�ith �Iie I�a1 �v�€�t Cc�mprehensive Flamning anci Land Developm�t Regulatian Ar,t, as amended, adoPting a sma11 sr,ale amendment to the Future Land ITse Map in the area desigr�ted on the attached exh�it, aPFlying a cammercial land u�e classificatic�n to a portian of the real property located on the east side of IT.S. Highway Une, north of Canal Court containing approxiinate 1.33 acres. Sectic� 2. Severabilit�. If an� provision of t�is f}rdinance or the app�ieation therefore is held invalid, such invalidity shall not affect the other provisions or applications af this Ordinance, wluch can be give,� effect without �he invalid provisions or applications, and ta t�his end, the provisions of this Ordinance, are hereby declared severabte. :� VILLAGE OF TEQUESTA NOTICE UF PUBLIC HEARING FUTURE LAND USE MAP/CUMPREHENSIVE PLAN CHANGE 1'he Planning and Zpning Advisory Board, sitting as the Loca1 Planning Agency (L.PA) of the V'illage of Tequesta will conduct a public hearing and consider the following proposed ordinance. ORDINANCE NO. 596 AN ORDINANCE OF THE V�LAGE COUNCIL OF THE VII�LAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AMENDING THE COMPREHENSIVE PLAN OF THE VII..LAGE OF TEQiT�STA, FLORIDA IN ACCORDANCE WTTH CHAFTER 163, FLORIDA STATUTES "THE LOCAL GOVERNMENT COMPREHENSIVE PLANNIlVG AND LAND DEVELOPMEI�IT REGULA7TON ACT", AS AMENDED, � AND CHAPTERS 9J 5 AND 9J I1, FLURIDA ADIYIINISTRATIVE CODE, ADOPTING A SMALL SCALE � DEVELOPMENT AMENDMENT TO THE FUTURE LAND USE MAP IN THE AREA DESIGNED; APPLYING A COMMERCIAL LAND USE CLASSIFICATION TO A PORTION OF REAL PROPERTY LOCATED ON THE EAST SIDE OF U.S. ffiGHWAY ONE NORTH OF CANAL COURT, CONTAINING APPRO�ATELY 1.33 ACRES; PRUVIDING A LEGAL DESCRIPTION OF THE PROPERTY; PROVIDING REPEAL UF ALL ORDIl�IANCES IN COi�FLICT; PROVIDIl�TG FOR CODIFICATION; PROVIDTNG AN EFFECTIVE DATE. As generally described below: 1) the Rocchio Yacant parcel located on the northeast comer .of US Hwy 1 and Harbor Rd North � 2) Baldino's Restaurant located on the southeast corner of US Hwy 1 anc� Harbor Rd North . 3) Phoenix Health and Wellness Center located at the northeast comer or US Hwy 1 and Cana1 Ct. 4) The approximate 20 foot wide alley running along the eastern section of all three of the about mentioned properties. �� A public hearing on the ordinance will be held on March 16, 2005 at 6:30 P.M. at the Village of Tequesta Recreation Center, 399 Seabrook Road, Tequesta, Florida. This hearing is being conducted for the purQose of affording interested persons the opportunity to express their vie�vs concerning the proposed ordinance. The proposat may ' be inspected in the Office of the Clerk, loca.ted at 250 Tequesta Drive, Suite 300, Tequesta, Florida 33469. T� 4 v VILLAGE OF TEQUESTA DEPARTMENT OF COMMUNITY = DEVELOPMENT MEMORA.NDUM � l�` y y co TO: PI��NNING AND ZONING BOARD FROM: JEFF NEWELL, DIItECTOR DEPARTMENT OF CO DEVELOPMEI�IT RE: FUTURE LAND USE/COMPREHEI�FSIVE PLAN AMENDMENT DA�`E: MAR�FI 1, 2U05 A poEtion of properljr locatec� on the east side of U.S. Highway One and north of Ganal Court containing approxima�y 1.33 ac�es, as furtf�er desc�ibec� befow, was recentiy an�exed inta the �flage of Tequesfa: PROPERTY DESCRIPTION #'1 Rocchio Vacant L.and: Thi� property contains .43 acres of vacant land witti 17i feet of frontage on US Hwy. One, 120 fee� � fno[rtage on Harbt�' itcx�d Narth, i�3 feet aloruj tF� �sterly a[ley aru! i26 feet of proPertY bounding Sar�paint Bay Condo to the north. The property currenii}r has a tand use designation of C/S (High Intensity Commerciat) by Palm 8each County. A land use designation of Commeraai by Tequesta is proposed. PR(lPERTY QESCRIPTIQN alE`2 Batdino`s Restaurant: Baldino's iocated at 79i {previousiy 19708) U.S. Hwy. One on the sau�heast comer of U.S. Hwy. One and Harbor Road South contains approximately 12,000 square feet. The praperty is curren�y improved with a 2,500 SF restaurant. it curren�iy has a fand use designatiort of CJ5 �Higf� Intensity Canmer�eiaf} by Patm Be�h County. A Fa� crse �na� � Commerciai t�/ Teq�a is propased. PROPERTY DESCRIPTION #3 Phoenix Heaith and Wettness Center: This property is laated at 731(previousty i968&) US Hwy. One. It has approximatety !64 feet of fircm� on US Hwy O� witfi a c� af f20 fee� foc a�i �at size af 1},2fl� sqc�ar+e feet. The property is currentty improved wi� approximatety f:�70Q square €oot o�ce buitdir�q. Tfte PropertY currentiy has a fand use designation of CJ5 (High Intensi .ty Commeraal) by Patm Beach County. A land use de�ignation of Comrr�erciai by Tequesta is proposed. � Z SKET CH OF L EGA L� DESCR ! P T I pN � ' C TH l S t S IVOT A SURVEYj �� L 0 T 8 , . . . 0 3o so BLOCK �, o ° . L 0 T 14 L 0 T 23 0 N ' �p BLOCK 2 BLOCK 2 SCALE - S'-60' p ' � � .i 27 20' � � � N .. � • �� 260. QO' � � �' f ��e / 20' ALLEY � - 20 .ALLEY �° f zo� � zo� - . � � � S ' � °° ` �.0 �� 1 2 3 4 5� 6 7.o Q 1 2 3 4 5 6 7 8 9 1011 1,�� " �0 13 � � �~ ° � � � ° . $ ° . .,� `� o� .O O o ° , � B 0 C � � � � L C� 2 o co , , p � � ` + ¢� Q " � . O . : I e3 ASANDONED �o � � }.,,�� o e �p' � 9� . . � O � �2 R I GHT=OF-WAY o �� g0 ABANQONED R I GHT-OF-WAY �o � � � �o. so� � � � 2so - � � . �, . o0 . . U. S. H 1 GHWA Y N0. 1 � .� � L FGA L D�SCR 1 P T l ON � � � IOTS i-7,•• BLOCK i, AND LOTS 1-i3, BLOCK .2. ACCOAD I NG TO THE . •• . PLAT OF JUP i i'EA HE I GH7S, AS RECORDEO I N PLAT BOOK 23, PAGE � ,,.� EAST F�R HI�GHWAY ONE LYING WEST OF AND CQNTIGUOUS TO SAID LOTS i-7, BLOCK i, �,,�� j''� AND SAIO LOTS i-i3, BLOCK 2. JUPITER HEIGHTS AND THE 20 FOOT �• � , PLATTEO ALLEY LY 1 NG EAST OF. AND CONT i GUOUS TO SA I D'LOTS i-7. AND ASSOCIATES. INC � BLOCK i ANO SA I D L07S i-i3, BLOCK 2. JUP i TEA HE 1 GHTS SURVEY { NG & MAPP 1 NG DAN �' A! LEY • CONTA I N! NG i. 315 ACRES, MOAE OR LESS. 112 N. U. S. H I GHWAY No. 1 (�`�� SU EYOR � pEH . . TE�UESTA, FLORIDA 33469 •� F ORIDA RE ISTRAT�QN�NO. 2439 .. PH�NE: (56i1 746-8424 � BUS I NESS L I CENSE: LB�2799 «�""` DATE: OCTOBER 20, 2004 ' ``- � JOB NO.: 80000-9i � � . . . Village of Tequesta Proposed Land Use Designation Canal Rd North to Racchio's Including Phoenix and Baldino's and the 20 Alley Rlght of Way ;h �a��'',�"' '�. ,. . r i ,�` �� ' � �.' ;, ' ti i _ . ..,, . �i.`' 4�a , � � � ; '�." � wx. ,� ' � � � � Pt - ti. • r ,� - � ... . . �� , € n � � � a ��, � � . K _ � _ -- .< �' _ � . � f� Y � � Y ��'. ' ', ,. � n ! � � N � N ��- • . �� -5 - � � � _ - �..� � � _,,�/�°+�� . _ .��. . 1 ' �� '�'S �� i� - . � � F• � $ V ` � � . ��'. . 1 G , , � � �. ." (� ` `� ; � t � t�. 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' �:. ` �� . � .. � �-- �. � .�� 4 �l_ w �� 4(�0 , �,� � :: � � �. ° --� �` :� � ��". �� _ � ��,.,� w f ' �' � - , :: t . y �• .. � °� � ��.� ��',. '�°'�� . � 5 � � , �, y 4 � �,.�,�'-, � �� ,1. � � ` � � 1 � t f � _ ,. � ,_, �` � -'� '� . �� -':�� 1 . . -._ ; N Exhibit "B" Land Use (PBC): C/5 « E Zoning (PBC): CG Proposed Land Use (Tequesta): Commercial S 0 95 190 380 Fe�roposed Zoning (Tequesta): C2 Community Commercial I i i i I i i i I � � � � �' �.- _ � � �: _. 1 ; r '�r� �; _ '11 " ` ,'� - Villa e of Te uesta g q Comprehensive Annual Financial Report Fiscal Year Ending September 30, 200 4 r : - , \ �� .'i' - � � t�(��{ ��., '. _ r ' �,�� ,� ��. �. � ''� `' . ` �y, c�i I � C�+ ,''� If F. �� — � �' �� '._. . � �.t�zrl� `Yd�e� "�c� - ��aa#- i � . ..,,. ,�.,,.., .,,.. —_— � ,� IrI � .. -- ,. , . � , I i i� � �.�;:;� s. ;=�n. �� .�� „ ......,.. . ;. ['�_.' � ! .I ��i '� OC 1�, ti� � � t.�: �. � '..f� �" i y,�1'��itJC� � _ '' 1 J - 6 - � b � - c 1� _ __ I`�. .��. � '1 f. �� _�1 i .� t ��1. 1 � _ r'1 � t _ j ' ' . New Tequesta Village Hall Opening 2006 A VILLAGE OF TEQUESTA, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 2004 PREPARED BY FINANCE DEPARTMENT THE VILLAGE OF TEQUESTA, FLORIDA VILLAGE OF TEQUESTA, FLORIDA TABLE OF CONTENTS PAGE 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 REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS 1-2 MANAGEMENT'S DISCUSSION AND ANALYSIS 3-15 BASIC FINANCIAL STATEMENTS: Government-Wide Financial Statements: Statement of Net Assets 16 Statement of Activities 17 Fund Financial Statements: Balance Sheet — Governmental Funds 18 Statement of Revenues, Expenditures and Changes in Fund Balances — 19 Governmental Funds Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 20 Statement of Net Assets — Proprietary Funds 21 Statement of Revenues, Expenses and Changes in Net Assets — Proprietary Funds 22 Statement of Cash Flows — Proprietary Funds 23 Statement of Fiduciary Net Assets — Fiduciary Funds 24 Statement of Changes in Fiduciary Net Assets — Fiduciary Funds 25 Notes to Basic Financial Statements 26-56 Required Supplementary Information (Other than MD&A): Budgetary Comparison Schedule — General Fund 57 Note to Budgetary Comparison Schedule 58 Schedule of Employer Contributions 59-60 � : �- ' �r�� (/"' � � ,. `�.. �v� �M� //".� li _ , ��; � %�y, -j, . - ! .. �, � � / ' �� t o 0 INTRODUCTORY SECTION `;,:_ � , . � , � � � / � �'. _ �. �1 � r�1 � ' - . 250 Tequesta Drive P: (561) 575-6200 , - '''�,\ Tequesta, FL 33469 I F: (561) 575-6203 � '<�: � _. •<<;,' < u l�ebruai 3, 2005 � To the Honorable Mayor, Members of The Village Council, and Citizens of the Village of Tequesta, I�lorida Chapter 11.45 of the Plorida Statues, C1lapter 10.550 of the rules of tlze Auditor General of the State of Florida i eveiy genei purpose local government publish within six nionths of the close of each fiscal year a complete set of audited financial statei�lei�ts. The Comprehensive Annual Financial Report of the Village of Tequesta, Florida, is published to ful�Cil] thaC requirement for the fiscal year ended September 30, 2004. The financia] statements included in this report conform with accounting principles generally accepted in the United States (GAAP) established by the Governmental Accounting Standards Board. This report consists of management's i concerning the finances of the Village o�f Tequesta. Coi�sequently, management assumes full res}�onsibility for the completeness ai�d reliability of the infoi presented. We believe the data presented in this report to be accurate in all material i and include all statemei�ts and disclosures necessary for the reader to obtain a tl�orougl� understanding of the Village's financial activities. To pr a reasonab1e basis for mal<ing these representations, mana�ement has established a comprehensive internal conh fi that is designed for this puipose. Because the cost of internal controls sl�ould not outweigh theii benefits, the Village's comprehensive fi�amework of internal controls has been designed to pi�ovide reasonable rather than absolute assurance that the tnancial statement will be fi fi�on� material misstatement. As management, we assert that, to the best of our lrnowledge and belief, this financial repol is complete and r in all inaterial respects. "I Village's finai�cial statements have been audited by Rachlin Cohen & Holtz LLP, a licensed certified public accountin� firm. The independe�lt auditor concluded, based upo�� the alidit, that there was reasonable basis for renderin� an unqualified opinion that t�he Village's �financial statements for the fiscal year ended September 30, 2004 are fairl}� presented in accordance with GAAP. The independeut auditor's report is located at the front of the financial section of this report. i The independent audit of the �nancial statements of the Village was part of a broader, federal and state mandated "Single Audit" designed to meet the special needs of federal and state grantor - agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the Viliage's internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards and state financial assistance. There were no Singie Audit findings during the fiscal year ended September 30, 2004. PROFILE OF THE GOVERNMENT The Village of Tequesta was incorporated June 4, 1957 and has a Council-Manager form of government. The governing body of the Village consists of a five member Village Council and is 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 day-to-day affairs of the Village are under the leadership of the Village Manager. The annual budget serves as the foundation for the Village of Tequesta's �nancial planning and control. The Village departments meet with and submit their plans and needs for the coming year to the finance department, which compiles a proposed budget. The Village Manager reviews and then submits the Manager's recommended budget to the Village Council. The Village Council reviews the budget, holds workshops for discussion on the budget and subsequently holds two public hearings to obtain citizen input and make changes prior to adoption of the budget. Finaily, prior to October I the Village Council adopts the approved budget along with an ordinance establishing the property tax rate (millage) required to fund the budget. Department heads recommend transfers of appropriations within a department; the Village Manager may approve appropriations within a Fund. Transfers of appropriations between funds, or supplemental appropriations, however, require the special approvaI of the governing council. Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual buclget has been adopted. FACTORS AFFECTING FINANCIAL CONDITION The information presented in the �nancial statements is perhaps best understood when it is considered from the broader perspective of the speci�c environment within which the Village of Tequesta operates. il Local Economy The Village is located at the extreme northeastern quadrant of Palm Beach County. Teyuesta is a relatively affluent residential community with adequate commercial facilities necessary to provide goods and services to its residents. Northern Palm Beach County ranks as on of the top growth areas in the country. Although Tequesta's growth potential is restricted by the natural boundaries of the Atlantic Ocean to the east, the Loxahatchee River to the west, the Town of Jupiter to the south and Martin County to the north, Tequesta's growth potential for the foreseeable future continues to be favorahle Property value assessments for fiscal year 2003/2004 increased approximately 18%. New construction and general appreciation in property values continue to be important factors in Tequesta's expectation of a continued rise in property assessments within the VilIage Long-Term Financial Planning The Village of Tequesta's primary focus related to economic growth is the rebuilding and improving of existing commercial and residential property. The Village has a five-year capital improvement plan to continue to maintain and enhance existing roadways, parks and recreational facilities to encourage the improvement of these properties. MAJOR INITIATIVES The Village of Tequesta's primary focus related to economic growth is the rebuilding and improving of existing commercial and residentiai property. The Village has a five-year capital improvement plan to continue to maintain and enhance existing roadways, parks and recreational facilities to encourage the improvement of these properties. • Continue to explore annexation of contiguous properties in unincorporatec! Palm Beach County. • Continue to evaluate capital and operational needs within the Village to ensure a high- Ievel service delivery in an efficient and economical manner. • Continue to explore alternative revenue sources, at both the state and federal level, with the assistance of a professional lobbyist. • Expand water utility services to unincorporated customers, generating new revenues for the utility. • Continue to evaluate and implement contemporary financial policies and procedures to ensure the efficient and economical operation of the Village of Tequesta. • Begin constructing a new Village Hall. • Construct a new water utility infrastnacture in Martin County to service Tropic Vista residences. � Construct a new reverse osmosis well. and raw water pipe line, reducing demand on external suppliers and increasing natural water supply 111 Cash Management The Village of Tequesta maintains two pooled cash accounts, the general investment account and the water enterprise investment account. The finance department monitors cash requirennents and the finance director approves temporary idle cash for investment into these accounts. The investment policy of the Village is to maximize its investments in high quality, risk-free securities authorized by State statutes, while maintaining a competitive yield on its portfolio. Tequesta's investments for the current year consisted of deposits with the State Board of Administration (SBA) — Local Government Surplus Funds trust Fund Investment Pool, obligations of the U.S. Government, and amounts held by an outside custodian on behalf of the Pension trust Funds. Investments with the SBA consist of obligations of the U.S. Treasury and its agencies, money market securities of highest quality such as commercial paper, banker's acceptance, corporate notes and repurchase agreements. Because of short maturities and high quality, securities in this fund are considered practically risk free. On September 30, 2004, investments held by the Village of Tequesta totaled $13,991.528, which is detailed in the Notes to the Financial Statements of this report. Risk Management During 2004, Tequesta continued to use a third-party insurance coverage for its Risk Management Program. Pensian Bene�ts The Village maintains a single-employer, defined benefit pension retirement system. The retirement system provides benefits to a11 full time �refighters, as we11 as any full time police of�cers or general employees hired January 1, 1996 or thereafter. In 1999, the Plans were amended, establishing a separate plan for public safety officers (firefighters and police officers) and a separate plan for general empioyees. The retirement system was established by the village and is administered by two separate Boards of Trustees (public safety offers and general employees}. The retirement system receives contributions that may not be used to pay the benefits of all employee classes. Due to this restriction, for �nancial statement purposes, three separate plans are shown as pension trust funds. The Village Employees' Retirement System administers the following plans: The Firefighters' Pension Trust Fund (FPT�, The Police �fficers' Pension Trust (PPTF) and the General Employees' Pension Trust Fund (GPTF}. The Firefighters' Pension Trust Fund and the Police Officers' Pension Trast Fund have issued stand- alone financial statements and are included in the financial statements of the Village as pension trust funds. iv 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 �scal year ended September 30, 2003. This was the twenty-�rst 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 Certi�cate of Achievement is valid for a period of one year. We believe that our current comprehensive annual financial report will continue to rneet the Certi�cate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for - another certi�cate. 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, - _ '�'` �""`� �"_. ' c� � � �_ ��-��-- , ---�� ;� � ,s' � � Michael R. Couzzo, Jr. �oAnn Forsythe, CPA Village Manager Finance Director v ��i� ca�� o�` . A:ch�ev��.e�.� �o�r ��llence l�]. �111�.I�.C1.�.1 , �.�j� 01�1�1,� Presented to �J"i�lage af Tequesta, Florida Fc�r its Campr�hensive Annual �'i�anci�t Report for the Fiscal `Year End�d Septemb�r 30, ZUO3 A Certz�cate of Achievement for Excelleiice in Fin�ncial Reporting is presented by the GavernrnenC Finance Officers Association of the I�nitect States and Canada to govert�.menf tusits aud public emplayee retire.ment systems vsrhase cornprehensive annual financzal. reports {L'AFRs) aehieve the highest standards in government accounting and #mancial reporting. �� „r �x� `" � � � Presidez�t s�tr�. �,a��:� ��;r�� = "�%��;� Executive Directc�r -vi- VILLAGE OF TEQUESTA, FLORIDA ORGANIZATION CHART SEPTEMBER 30, 2004 C1t1ZeT1S Village Council Village Manager Village Public Works Utilities Finance Community police Fire-Rescue Village Clerk Attorney �� Recreation Department Departznent Development Department Departrnent Department Deparhnent -vii- �. 9 , ?E�� '��. l (� 1 �. ,;��_...� �� . �„ l �s� " , i � ��• �� /i,' *�. .. l , '', � - ., `� , ,. FIl�TANCIAL SECTION REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS �� >�l �'1''� � 1�C�� Accountants Advisors KEI'ORT OF' INDI�PENl)CNT CI�RTIPIICD PLrBLIC ACCOUN'l'ANTS Honorable M�lyor, Villa�e Council and Villa��e Manager Villa�e of Tequest�.i, Florida We have audited the accoi7��anying financial statements of the governmental activities, the business-type act�ivities, each major fund, and Che a��regate remainin� fund in['ormation of the Villa�e of Tequesta, Florida (the Villa«e) as of and for the year ended September �0, ?004, which collectively comprise the Villa�e's basic tinancial staleme;nts, as listeci in the table of conten�s. These tlnancial statements are the responsibility of tl�e Village's man�i��emenC. Our responsihiliry is to express opinions on lhese b�isic . financial sta�ements based on our audiC. We conducted our audit in accordance with auditing standzlyds generally accepted in th� Uniled S[ates �ind the standards applicable lo financial audits contained in Goven2inent ,A��diti��g Stcr��2rlurcls, issued by the Comptrollei General of the United States. Those standards require that we plan and pei the auclit to obtain reasonable assurance about whether the financiaf statements are free ot material il�isstatement An audit includes exan��inin�, on a test basis, evidence supporting the ai��ounts and disclosures in the tinancial statements. An audit also includes assessinb the accouneinb principles used and sibniticant estimates made by management, as well as ev�iluatinb the overall financial staCemenC presentation. We believe Chat our �iudit provides a reasonable basis for o�n� opinions. In our opinion, th� financial statements referred to above present fairly, in all material respects, the financial position oP �he governmental activities, the business-type activities, each major fund, and the a��rebate remainin� fund information of the Villa�re of Tequesta, Tlorida as of Septei��ber 30, 2004 and the respecCive chan«es in tinancial position and cash flows, where applicable, Chereof for the year Chen ended in conformiCy with accounting principles gener�llly accepted in the UniCed StaCes. In accordance with Gove� A�iditing Star��lcircls, we have also issued a report dated February 3, 200� on our consideralion of the Villu�e's internal con[rol over financial reporting and our tests of its compliance with certain provisions of ]aws, regula�ions, contracts, grant a�reemenls and other matlei:5. The purpose of that report is to describe Che scope of our testin� of internal conCrol over financial reporting and compliance and the results of that testin�, and not to provide an opinion on the inCernal � control over financial reportin� or on compliance. 1'hat reporC is an inle�ral parC of an audit performed in accordance with Gover�ii�l�crtt Acr.clitirl, Stari.clurds and should be read in conjunction wiCh [he report in considering the results of our audit. Mana�emc;nt's Discussion and Analysis and the Required Supplementary Inform�ition on pa�es 3 to 1 � and paQes 57 to 60, r�spectively, are not a rey�iired par� of� the basic financial statements buC are supplemen[ary information required by aecountin� principles �enerally accepled in lhe United S�ates. We have applied cert�tin limited procedures, which consisted principally of inquiries of man�tgament re�ardin� the methods of i7�easurement and presentation of the rec�uired supplementary information. However, we did not audit Che infon�iation and express no opinion on it. -1- R,�r,S�Ei�t F;ofir.rt w fial�i ��e One �cutheast Tl��i�d Avarue :� iei,th Floor r� Niiami, Florlda 33i31 �- t�l�one 305.37i.4228 �� F�x 305.377.8331 �� fn;��u�l.C��:9��r��;a�Pt�� Qn Inr�epundent ��leribai cr r.>al<cr '�i!ly In�ern,itio�;ai IH : A M I � F 0 R 7 L A U U E � D A L E � �N E S'f P A I. P�I B F. A C fl o S T U R N f Hoi�orable Mayor, Villa�7e Council and Villa�e Nlana�er Villa`e ol'Tequesta, Florida Our audit was condticted for the purpose of formin� opinions on the financial sCatements that collectively comprise fhe Villa�e's basic fin�incial statements.� The inlroductory section, combinin� and individua] Pund stateiT�ents and schedules and st��tistical tables are presented for purposes of additional analysis and are not a required part oi� lhe basic tinancial statements. The combinin; and individual fiind statei��ents and schedules have beei� subjected t� the auclitinQ procedures applied in the �ludit of the basic tinancial stat�:ments and in otu opinion, is fairly stated in all materia] respects in relation to the basic financial slatements taken us a whole. The information identified in lhe table of contents as the Introductory and Statistical Sections have not been sub tc� the audiCin�r procedures applied in the audit of the basic financial statements, and, accordingly, we express no opinion Chereon. - �-,�.,� �- ,�� ,� � � West Palm Beach, Florida February 3, 2005 � �_.(: f�� 1 -j £�?l A.cca�unt;�_ru�s A.cl��i ,ors MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) MANAGEMENT'S DiSCUSSION AND ANALITSIS As management of the Village of Tequesta, we offer readers of the Viilage's financial statements this narrative overview and analysis of the financial activities of the Village for the fiscal year ended September 30, 2004. We encourage readers to consider the inforrnation presented here in conjunction with additional information that we have furnished in the letter of transmittal, which can be found on pages i to v of this report. Financial Hi�hli�hts • The assets of the Village of Tequesta exceeded its liabilities at the close of the most recent fiscal year by $21.7 million (net assets). Of this amount, $10.8 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 $657,807 during the current �scal year. This decrease is attributable to the loss on the sale of capital assets of $1,008,734. A key factor in this loss was the saie of land at a loss of $1,015,334. • As of the close of the current fiscal year, the Village's governmental funds reported combined ending fund balances of $5 million, an increase of $338,344 in comparison with the prior yeax. The total amount is available for spending at the government's discretion (unrestricted fund balance). • At the end of the current fiscal year, unreserved, undesignated fund balance for the general fund was $594,718, or 8.7°10 of total general fund expenditures. . • The Village's total debt increased by $95,404 (0.7 percent) during the current fiscal year. The increase was primarily due to the issuance of a note payable of $645,170. This was offset by principal paynnents on the bonds, capital lease payments and payment of a $105,000 claim payable resulting in a net increase of $95,404. 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 statement, 2) fund financial statements, and 3) notes to the basic financial statements. In addition to these basic financial statements, this report contains other supplementary information. Government-wide financial statements. The government-wide �nancial statements are designed to provide readers with a broad overview of the Village's finances, in a manner similar to a private-sector business. The staternent of net assets presents information on all of the Village's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net -3- aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The Village adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been provided for the General Fund to demonstrate compliance with this budget. The basic governmental fund financial staternents can be found on pages 18-20 of this report. Proprietary funds. The Village maintains one type of proprietary fund. Enterpt-ise funds are used to report the same functions presented as business-type activities in the government-wide financiai statements. The Village uses enterprise funds to account for its water, stormwater, refuse and recycling and community development operations. Proprietary funds provide the same type of information as the government-wide �nancial statements, only in more detail. The proprietary furtd financial statements provide separate information for the Water Utility and Community Development. Data from the stormwater utility and refuse and recycling 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 Viliage's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on pages 24-25 of this report. Notes to the basic financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the basic financial statements can be found on pages 26-56 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 Viilage of Tequesta's progress in funding its obligation to provide pension benefits to its employees. Required supplementary information can be found on pages 57-60 of this report. The combining statements referred to eariier in connection with nonmajor governmental funds are presented immediately following the required supplementary information. Combining and individual fund statements and schedules can be found on pages 61-69 of this report. Government-wide Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of the Village's financial position. In the case of the Village of Tequesta, total assets exceeded liabilities by $21.7 million at the close of the most recent fiscal year. -S- Village of Tequesta's Changes in Net Assets Governmental Activities Business-tvne Activities Total 2004 2003 2004 2003 2004 2003 Revenues: Proa am revenues: , Charges for services $ 1,020,132 $ 893,380 $ 4,831,775 $ 5,251,271 $ 5,851,907 $ 6,144,631 Operating grants and contributions 43,945 Sb,517 - - 43,945 5b,517 General revenues: - ' Property taxes 3,781,095 3,392,623 - - 3,781,095 3,392,623 Other taxes 1,089,781 i - - 1,089,781 1,093,877 Franchise fees based on b oss receipts 372,212 350,423 - - 372,212 350,423 Intergovernmental 558,069 520,921 - - 558,069 520,921 Unrestricted investment earnings 79,483 89,532 75,846 70,706 155,329 160,238 Gain on sale of capitai assets (1,012,584) 6,400 3,850 681,912 (1,008,734} 688,312 Othermiscellaneous 83,126 123,740 82,576 10,767 i65,702 134,507 Total revenue 6,015,259 6,527,413 4,994,047 6,014,656 11,0�9,3�6 12,542,069 Expenses: Generalgovernment 1,1fl5,741 1,299,812 - - 1,105,741 1,299,812 Pubiic safety 4,138,374 3,649,$Q3 - - 4,i38,374 3,649,803 Transportation 804,523 474,134 - - 804,523 474,134 Leisure services 458,659 385,192 - - 458,659 385,192 Interest of lonb term debt 262,479 277,855 - - 262,479 277,855 Water utility services - - 3,975,766 3,881,752 3,975,766 3,881,752 Stormwater services - - 155,537 278,442 155,537 278,442 Refuse and recycling services - - 252 229,460 252,933 229,460 Community development - - 513,101 593,105 513,101 593,105 Total expenses 6,769,776 6,086,796 4,897,337 4,982,759 11,667,113 11,069,555 Change in net assets before transfers (754,517) 440,617 96,710 1,031,897 (657,807) 1,472,514 Transfers and contributions: Transfers (8,460 (7,847 8,460 7,847 - - Change in net assets (762,977) 432,770 105,170 1,039,744 (657,807) 1,472,514 Net assets - beginning 6,632,704 6,199,934 15,722,183 14,682,289 22,354,887 20,882,223 Net assets - ending $ 5,869,727 $ 6,632,704 $ 15,827,353 $ 15,722,033 $ 21,697,080 $ 22,354,737 Government-type activities: • The key element in the decrease in net assets is the loss on the sale of capital assets resulting from a$1,015,3331oss on the sale of land: • If we remove the effect of the loss on the sale of capital assets, overall revenues have increased. A key element in that increase is property taxes, which increased $388,472, (+11.5%) from the prior year. , -7- MANAGEMENT'S DISCUSSION AND ANALYSIS As management of the Village of Tequesta, we offer readers of the Viilage's financial statements this narrative overview and analysis of the �nancial activities of the Village for the fiscal year ended September 30, 2004. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in the letter of transmittal, which can be found on pages i to v of this report. Financial Hi�hli�hts • The assets of the Village of Tequesta exceeded its liabilities at the close of the most recent fiscal year by $21.7 million (net assets). Of this amount, $10.8 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 $657,807 during the current fiscal year. This decrease is attributable to the loss on the sale of capital assets of $1,008,734. A key factor in this loss was the sale of land at a loss of $1,015,334. • As of the close of the current fiscal year, the Village's governmental funds reported combined ending fund balances of $5 million, an increase of $338,344 in comparison with the prior year. The total amount is available for spending at the government's discretion (unrestricted fund balance). • At the end of the current fiscal year, unreserved, undesignated fund balance for the general fund was $594,718, or 8.7% of total general fund expenditures. • The Village's total debt increased by $95,404 {0.7 percent) during the current fiscal year. The increase was primarily due to the issuance of a note payable of $645,170. This was offset by principal payments on the bonds, capital lease payments and payment of a $i05,000 claim payable resulting in a net increase of $95,404. 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 statement, 2) fund financial statements, and 3) notes to the basic financial statements. In addition to these basic financial statements, this report contains other supplementary information. Government-wide financial statements. The government-wide �nancial statements are designed to provide readers with a broad overview of the Village's finances, in a manner similar to a private-sector business. The staternent of net assets presents infarmation on all of the Village's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net -3- assets may serve as a useful indicator of whether the financial positio� of the Village is � improving or deteriorating. The statement of activities presents information showing how the Village's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the Village that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all ar a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the Village include general government, public safety, transportation, and Ieisure servic�s. The business-type activities of the Village include water, stormwater, refuse and recycling and community development. The government-wide financial statements can be found on pages 16-17 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain � control over resources that have been segregated for specific activities or objectives. The Village, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with �nance-related legal requirements. All of the funds of the Village can be divided into three categories: governmental funds, proprietaxy funds and fiduciary funds. Governmental funds. Governmental funds are used to account far essentially the same functions reported as governrnental 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 �ompare the information presented for governmental funds with similax 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 governmentai fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Village maintains five individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General, Special Revenue, Special Law Enforcement, Capital Projects and Capital Improvement funds. The General fund is considered to be a major fund. Data from the other four governmental funds are combined into a single, -4-- aggregated presentation. individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The Village adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been provided for the General Fund to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on pages 18-20 of this report. Proprie�ary 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 financiai statements. The Village uses enterprise funds to account for its water, stormwater, refuse and recycling and community development operations. Proprietary funds provide the same type of information as the government-wide �nancial statements, only in more detail. The proprietary fund financial statements provide separate information for the Water Utility and Community Development. Data from the stormwater ` utility and refuse and recycling 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 �nancial statement because the resources of those funds are not available to support the Village's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on pages 24-25 of this report. Notes to the basic financiad 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 26-56 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 Viilage of Tequesta's progress in funding its obligation to provide pension benefits to its employees. Required supplementary information can be found on pages 57-60 of this report. The combining statements referred to earlier in connection with nonmajor governmental funds are presented immediately following the required supplementary information. Combining and individual fund statements and schedules can be found on pages 61-69 of this report. Government-wide Financial Analvsis 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 $21.7 million at the close of the most recent fiscal year. -5- By far the largest portion of the Village's net assets (61.6°Io) represents investment in capital assets (e.g., iand, buildings, machinery and equipment), less any related outstanding debt used to acquire those assets. The Village uses these capital assets to provide services to citizens; consequently, they are not available for future spending. Although the Village's investment in its capital assets is report net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. Vitlage of Tequesta's Net Assets Governmentat Activities Business-type Activities Total 2004 2003 2004 2003 2004 2003 Assets Current and other assets $ 6,045,807 $ 5,326,336 $ 7,282,480 $ 5,889,717 $ 13,328,287 $ 11,216,053 Capital assets, net 6,549,602 8,096,179 17,339,246 17,808,464 23,888,848 25,904,643 Totalassets 12,595,409 13,422,515 24,621,726 23,698,181 37,217,135 37,120,696 Liabilities � Current liabilities and payables 758,479 _ 430,929 940,240 608,948 1,698,719 1,039,877 Long-term liabilities 5,967,203 6,358,882 7,854,133 7,367,050 i3,821,336 13,725,932 Totai liabitities 6,725,682 6;789,811 8,794,373 7,975,99$ 15,520,055 14,765,809 Net Assets Invested in capital assets, net of related debt 921,889 2,209,191 9,602,911 10,5b1,209 10,524,800 12,770,400 Restricted - - 322,818 317,i93 322,818 317,193 Unrestricted 4,947,838 4,423,513 5,901,624 4,843,781 10,849,462 9,267,294 Total net assets $ 5,869,727 $ 6,632,704 $ 15,827,353 $ 15,722,183 $ 21,697,080 $ 22,354,887 An additional portion of the Village's net assets, $322,818 (1.5%), represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets of approximately 10.8 miilion (50 °Io) may be used to meet the Village's ongoing obligations to citizens and creditors. At the end of the current fiscal year the Village of Tequesta is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate governmental and business-type activities. The same situation held true for the prior fiscal year. The government's net assets decreased by $657,807. This decrease is attributable to the loss on the sale of capital assets of $1,008,734. A key factor in this loss was the sale of land at a ioss of $1,015,334. Offsetting this loss was an increase in the degree to which ongoing revenues have outstripped similar increases in ongoing expenses as well the effect of rate increases and investment earnings. � Governmental activities. Governmental activities decreased the Village of Tequesta's net assets by $762,977 thereby accounting for 100% of the total decrease in the net assets of the Village. -6- Village of Tequesta's Changes in Net Assets Governmental Activities Business-type Activities Total 2004 2003 2004 2003 200G 2003 Revenues: Proa am revenues: , Charges for services $ 1,020,132 $ 893,380 $ 4,831,775 $ 5,251,271 $ 5,851 $ 6,144,651 Operating b ants and contributions 43,945 56,517 - - 43,945 56,517 General revenues: - - Property taxes 3,781,095 3,392,623 - - 3,781,095 3,392,623 Other taxes 1,089,781 1,093,877 - - 1,089,781 1,093,877 Franchise fees based on a oss receipts 372,212 350,423 - - 372,212 350,423 Intergovernmental 558,069 520,921 - - 558,069 520,921 Unrestricted investment earnings 79,483 89,532 75,846 70,706 155,329 i60,238 Gain on sale of capital assets (1,012,584) 6,400 3,850 681,912 (1,008,734) 688,312 Othermiscellaneous 83,126 123,740 82,576 10,767 i65,702 134 Total revenue 6,015,259 5,527,413 4,994,047 6,014,655 11,009,306 12,542,069 Expenses: Generalgovernment 1,105,741 1,299,812 - - 1,105,741 1,299,812 Public safety 4,138,374 3,649,803 - - 4,i38,374 3,649,803 Transportation 8Q4,523 474,134 - - 804,523 474,134 Leisure services 458,659 385,192 - - 458,659 385,192 Interest of lonb term debt 262,479 277,855 - - 262,479 277,855 Water utility services - - 3,975,766 3,881,752 3,975,'756 3,881,752 Stormwater services - - 155,537 278,442 155,537 278,442 Refuse and recycling services - - 252,933 229,460 252,933 229,460 Community development - - 513,101 593,105 513,101 593,105 Total expenses 6,769,776 6,086,796 4,897,337 4,982,759 11,667,113 11,069,555 Chanae in net assets before transfers (754,517) 440,617 96,710 1,031,897 (657 1,472,514 Transfers and contributions: Transfers (8,460 (7,847 8,460 7,847 - - Change in net assets (762,977) 432,770 105,170 1,039,744 (657,807) 1,472,514 Net assets - beginning 6,632,704 6,199,934 15,722,183 14,682,289 22,354,887 20,882,223 Net assets - ending $ 5,869,727 $ 6,632,704 $ 15,827,353 $ 15,722,033 $ 21,697,080 $ 22,354,737 Government-type activities: • The key element in the decrease in net assets is the loss on the sale of capital assets resulting from a$ i 3 O15,3331oss on the sale of land: • If we remove the effect of the loss on the saie of capital assets, overall revenues have increased. A key element in that increase is property taxes, which increased $388,472, (+l 1.5%) from the prior year. -7- Expenditures by Function - Govenmental Activities - ■ Interest on Debt � p Leisure 4 ,� 0 Services 7% ❑ General Gov't 16% � Transportation � 12% � � � R� � ' .�:- �.�.��:_.::'' � ■ Public Safety 61% Revenues by Source - Governmental Activities ■ Operating Grants & ■ Other � Charges for Contributions ' Miscellaneous Services � 1% y3% ❑ Loss on Sale of Capital ` ' Assets � ? -. 1 ' ` �� ■ Property Taxes _ � � 46°/a s ■ Unrestricted � � �� x� � �; Investment �� ,��.��: Earnings ~ �- � :, , �� 1% � �� , ��; .t � p Inter- �� ,� c govenmental 7°/a � Franchise Fees p Other Taxes 5% 13% -8- Village of Tequesta's Changes in Net Assets Governmental Activities Business-tme Activities Total 2004 2003 2004 2003 2004 2003 Revenues: Progam revenues: i Charges for services $ 1,020,132 $ 893,380 $ 4,831,775 $ 5,251,271 $ 5,851,907 $ 6,144,651 Operating grants and contributions 43,945 56,517 - - 43,945 56,517 General revenues: - - Property taxes 3,781,095 3,392,623 - - 3,781,095 3,392,623 Other taxes 1,089,781 1,093,877 - - 1,089,781 1,093,877 Franchise fees based on a oss receipts 372,212 350,423 - - 372,212 350,423 Intergovernmental 558,069 520,921 - - 558,069 520,921 Unrestricted investment earnings 79,483 89,532 75,846 70,706 155,329 160,238 Gain on sale of capital assets {1,012,584) 6,400 3,850 681,912 (1,008,734) 688,312 Othermiscellaneous 83,126 123,740 82,576 10,767 165,702 134 Total revenue 6,015,259 6,527,413 4,994,047 6,014,656 11,009,306 12,542,069 Expenses: Generalgovernment 1,105,741 1,299,812 - - 1,105,741 1,299,812 Public safety 4,138,374 3,649,803 - - 4,138,374 3,649,803 Transportation 804,523 474,134 - - 804,523 474,134 I,eisure services 458,659 385,192 - - 458,659 385,192 Interest of lonb term debt 262,479 277,855 - - 262,479 277,855 Water utility services - - 3,975,766 3,881,752 3,975,766 3 Stormwater services - - 155,537 278,442 155,537 278,442 Refuse and recycling services - - 252,933 229,460 252,933 229,460 Communitydevelopment - - 513,101 593,1OS 513,101 593,105 Total expenses 6,769,776 6,086,796 4,897,337 4,982,759 11,667,113 11,069,555 Change in net assets before transfers (754,517) 440,617 96,710 1,031,897 (657,807) 1,472,514 Transfers and contributions: Transfers (8,460 (7,847 8,460 7,847 - - Change in net assets (762,977) 432,770 105,170 1,039,744 (657,807) 1,472,514 Net assets - beginning 6,632,704 6,199,934 15,722,183 14,682,289 22,354,887 20,882,223 Net assets - ending $ 5,869,727 $ 6,632,704 $ 15,827,353 $ 15,722,033 $ 21,697,080 $ 22,354,737 Government-type activities: • The key element in the decrease in net assets is the loss on the sale of capital assets resulting from a$1,015,3331oss on the sale of land. • If we remove the effect of the loss on the sale of capital assets, overall revenues have increased. A key element in that increase is property taxes, which increased $388,472, (+l 1.5°Io) from the prior year. 7 The Village's programs include General Government, Public Safety, Transportation and Leisure Services (culture & recreation and special events). The net cost shows the extent to which the Village's general taxes support each of the Village's programs. The cost of all governmental activities this year was $6,769,776. As shown on the Statement of Activities, those who directly benefited from the programs paid for $1,064,077 of this cost and the remaining $5,705,699 was financed through general revenues. Business-type activities. Susiness-type activities increased the Village of Tequesta's net assets by $105,170. This increase reduced the effect of a$762,977 loss from governmental activities. Although, net assets increased from the prior year, overall revenues from business-type activities decreased $1,020,759 (17%). Key elements of this decrease are as follows: • The prior year's revenues included a one-time gain on the sale of capital assets of $681,912. In the current year the gain recognized from the sale of capital assets was $3,860, a difference of ($678,052). • Revenue from charges for services in the water utility reflects the effect of the sale of customers to the Town of Jupiter in the prior year. Overall expenses were stable changing by less the —2% from the prior year. Expenditures by Function - Business-type Activities � Leisure Services � Refuse & 7% Recycling Services 5% ■ Stormwater Services 3% ,::_� " Water Utility Services 82% -9- Revenues by Source - Business-type Activities ❑ Other Miscellaneous 10% ❑ Gain on Sale of Capital Assets s � =_ � � 6% �� 2�,::z>, � . �� -.-.. � p Unrestricted investment Earnings pCharges for 19% :, �� _; Services ��' � 65% Financial Analysis of the Villa�e'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 governmerital 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, unresef~ved 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 $5,015,698, an increase of 338,345 in comparison with the prior year. Although, approximately 92.2% of the total amount of fund balances ($4,623,467) constitutes unreserved fund balance, which is available for spending at the government's discretion, the Village has designated $4,028,749 of these unreserved fund balances for the following purposes; Disaster Relief ($1,000,000); Tequesta Village Hall ($2,019,198); Recreation and Parks ($104,464); Capital Projects ($514,935): Capital Improvements ($374,460) and Special Law Enforcement ($15,692). Designations reflect the Village's seif- imposed limitations on the use of otherwise available current financial resources. The remainder of unreserved undesignated fund balance is $594,719 and is approximately 12% of total fund balances. -10- Village of Tequesta's Changes in Net Assets Governmental Activities Business-tvpe Activities Total 2004 2003 2004 2003 2004 2003 Revenues: Prob am revenues: i � Charges for services $ 1,020,132 $ 893,380 $ 4,831,775 $ 5,251,271 $ 5,851,907 $ 6,744,651 Operating a ants and conuibutions 43,945 56,517 - - 43,945 56,517 General revenues: - - Property taxes 3,781,095 3,392,623 - - 3,781,095 3,392,623 Other taxes 1,089,781 1,093,877 - - 1,089,781 1,093,877 Franchise fees based on b �oss receipts 372,212 350,423 - - 372,212 35Q423 Intergovernmental 558,0(9 520,921 - - 558,069 520,921 Unrestricted investment earnings 79,483 89,532 75,846 70,706 155,329 160,238 Gain on sale of capital assets (1,012,584) 6,400 3,850 681,912 (1,008,734) 688,312 Othermiscellaneous 83,126 123,740 82,576 10,767 165,702 134,507 Total revenue 6,015,259 6,527,413 4,994,047 6,014,656 11,009,306 12,542,069 Expenses: General bovernment 1,105,741 1,299,812 - - 1,105,741 1,299,812 Public safety 4,138,374 3,649,803 - - 4,138,374 3,649,803 Transportation 804,523 474,134 - - 804,523 474,134 Leisure services 458,659 385,192 - - 458,659 385,192 Interest of long-tein� debt 262,479 277,855 - - 262,479 277,855 Wa�er utility services - - 3,975,766 3,881,752 3,975,766 3,881,752 Stormwater services - - 155,537 278,442 155,537 278,442 Refuse and recyclina services - - 252,933 229,460 252,933 229,460 Community development - - 513,101 593,105 513,101 593,105 Total expenses 6,769,776 6,086,796 4,897,337 4,982,759 11,667,113 11,069,555 Chanae in net assets before transfers (754,517) 440,617 96,710 1,031,897 (657,807) 1,472,514 Transfers and contributions: Transfers (8,460 (7.847 8,460 7,847 - - Change in net assets (762,977) 432,770 lOS,170 1,039,744 (657,807) 1,472,514 Net assets - beginnind 6.632,704 6,199,934 15,722,183 14,682,289 22,354,887 2Q8S2,223 Net assets - ending $ 5,869,727 $ 6,632,704 $ 15,827,353 $ 15,722.033 $ 21,697,080 $ 22,354,737 Government-type activities: • The key element in the decrease in net assets is the loss on the sale of capital assets resulting fi a$1,015,333 loss on the sale of land. _ • If we remove the effect of the loss on the sale of capit��l assets, overall revenues have increased. A key element in that increase is property taxes, which increased $388,472, (+11.5%) froln the prior year. -7- Expenditures by Function - Govenmental Activities - ■ Interest on � Leisure Debt Services 4% 7% ❑ General Gov't - 16% �Transportation � 12% � 0 Public Safety 6y% Revenues by Source - Governmental Activities ■ Operating Other ❑ Charges for Grants & Services Contributions Miscellaneous 1% 1% 13% ❑ Loss on Sale of Capital Assets � 30� � Property Taxes 46% _ ■ Unrestricted Investment Earnings 1% , ❑ Inter- v�.�, :: govenmental 7°/a � Franchise Fees ❑ Other Taxes 5% 13% -8- The Village's programs include General Government, Public Safety, Transportation and Leisure Services (culture & recreation and special events). The net cost shows the extent to which the Village's general taxes support each of the Village's programs. The cost of all governmental activities this year was $6,769,776. As shown on the Statement of Activities, those who directly benefited from the programs paid for $1,064,077 of this cost and the remaining $5,705,699 was financed through general revenues. Business-type activities. Business-type activities increased the Village of Tequesta's net assets by $105,170. This increase reduced the effect of a$762,977 loss from governmental activities. Although, net assets increased from the prior year, overall revenues from business-type activities decreased $1,020,759 (17°Io). Key elements of this decrease are as follows: • The prior year's revenues included a one-time gain on the sale of capital assets of $681,912. In the current year the gain recognized fi the sale of capital assets was $3,860, a difference of ($678,052). • Revenue from charges for services in the water utility reflects the effect of the sale of customers to the Town of Jupiter in the prior year. Overall expenses were stable changing by less the —2% from the prior year. Expenditures by Function - Business-type Activities ❑ Leisure Services � Refuse & 7% Recycling Services 5% � Stormwater Services 3% Water Utility Services 82% -9- Revenues by Source - Business-type Activities ❑ Other Miscellaneous 10% ❑ Gain on Sale of Capital Assets 6% p Unrestricted Investment Earnings ❑ Charges for 19% Services 65% Financial Anal��sis of the Villa�e'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 goverrznie�ztal 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, urzf-eserved 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 $5,015,698, an increase of 338,345 in comparison with the prior year. Although, approximately 92.2% of the total amount of fund balances ($4,623,467) constitutes unresef�ved fu�id balance, whieh is available for spending at the government's discretion, the Village has �lesig�zated $4,028,749 of these unreserved fund balances for the following purposes; Disaster Relief ($1,000,000); Tequesta Village Hall ($2,019,198); Recreation and Parks ($104,464); Capital Projects ($514,935): Capital Improvements ($374,460) and Special Law Enforcement ($15,692). Designations reflect the Village's self- imposed limitations on the use of otherwise available current financial resources. The remainder of unreserved undesignated fund balance is $594,719 and is approximately 12% of total fund balances. -10- The General Fund is the chief operating fund of the Village. At the end of the current fiscal year, unreserved fund balance of the general fund was $3,718,380. As a measure of the general fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance represents 54.3°l0 of total general fund expenditures, while total fund balance represents 55.1% of that same amount. Compared to the prior fiscal year, tatal General Fund revenues increased by $541,587 or 9.0°Io. Key factors in this growth are as follows; • Proceeds from saies of capital assets ($521,948). The majority of the total proceeds received ($519,198) are from the sale of land. • Increase in property values and new construction, increased ad-valorem taxes $384,376 (11.6%). 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: Change from Change from General Fund Prior Year General Fund Prior Year % o� % O� 2004 Total � % 2003 Total � % Revenues Sources Taxes $ 4,870,876 75 $ 384,375 9 $ 4,486,500 75 $ 463,368 12 Intergovernmental 596,947 10 20,961 4 575,986 10 (65,254) (10) Charges for services 47?,513 6 114,850 32 362,663 6 40,363 13 Intragovernmental 341,700 6 4,210 1 337,490 6 2,420 1 Grants 43,945 - 37,428 574 6,517 - 6,517 N/A Licenses and permits 4,480 - {b,928) (61) 11,408 - 208 2 Interest 75,668 1 (7,498) (9) 83,166 i (29,834) (26) Fines and forfeitures 54,810 1 6,304 13 48,506 1 6 - Miscellaneous 83,126 1 8,999 12 74,127 1 62,027 513 Impact fees 11,028 - (21,115) (55) 32,143 - 23,143 257 Total revenues $ 6,560,093 100 $ 541,586 9 $ 6,018,506 100 $ 502,964 9 -11- Revenues by Source - General Fund ■ o.�°io 0 1. o � 0.8% � 0.2% ❑0.1% ■1.3% � 5.2% 0 7.3% � Taxes p 9.1 % � Intergovernmental �Charges for Services ❑ Intragovernmental ■ Grants ' ❑ Licenses and Permits ■ Interest 0 74.3% p Fines and Forfeitures ■ Miscellaneous � Impact Fees Expenditures in the General Fund are shown in the following schedule: Change from Change from General Fund Prior Year General Fund Prior Year % of °Io of 2004 Total $ % 2003 Total $ % Expenditures Public safety $ 3,902,259 57 $ 467,487 14 $ 3,434,772 55 $ 204,804 6 General govcrnment 1,225,550 18 (63,500) (5) 1,289,050 20 149,397 13 Transportation 776,273 11 336,010 76 440,263 7 36,900 9 Leisure services 384,980 6 37,005 11 347,975 5 22,649 7 Capieal outlay 117,575 2 (64,739) (36) 182,314 3 (6,022) N/A Debt service 439,081 6 (165,310 (27) 604,391 10 (1,382,409 (70) Total expenditures $ 6,845,718 100 $ 546,953 9 $ 6,298,765 l00 $(974,681 (13) In fiscal year 2004, total General Fund expenditures increased by $546,953 or 9.0 percent compared to the prior year. • The increase in Public Safety expenditures was due to union negotiated cost-of-living wage increases as well as overtime costs associated with Hurricane Jeanne and Hurricane Frances. -12- • The rising cost of health insurance was another factor for the overall increase in expenses. � • The increase in the expenditures in transportation was primaxily due to the costs associated with Hurricane Jeanne and Hurricane Frances. The Speciai Revenue fund has a total fund balance of $272,801, which is reserved, for paying the debt service on the Improvement Revenue Refunding Bond Series 1994. The Capital Projects and Capital Improvement funds have fund balances of $1,119,187, which is designated for construction projects. Both the Capital Projects and the Capital Improvement Fund are funded by transfers in from the General Fund. The net decrease in fund balances during the current year in the capital projects and capital improvement funds was $266,999 and is mainly the result of expenditures for capital outlay {$250,728). Proprietary funds: The Village's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net assets at the end of the year for the Water Utility Fund amounted to $4,$37,623. Other factors concerning the finances of this major fund have already been addressed in the discussion of the Village's business-type activities. General Fund Bud�etary Hi�hti�hts During the year there was a$316,434 increase in appropriations between the original and the final amended budget. Differences between the original budgeted expenditures and the final amended budget of $340,434 can be briefly summarized as follows: • ($94,265) decrease in general government • $141,472 increase in public safety • $284,522 increase in transportation • ($4,407) decrease in leisure services • $1,349 increase in capital outlay • $11,763 increase in debt service Of this increase $24,000 was to be funded out of miscellaneous increases in various charges for services. The remaining $316,434 was budgeted from available fund balance. During the year, however, revenues exceeded budgetary estimates and expenditures were less than budgetary estimates, thus eliminating the need to draw upon existing fund balance. Even though these adjustments increased the budget by $340,843 actual charges were $134,230 (1.9 percent) below the final budget due to savings in: • $42,293 in public safety • $63,078 in general government -13- • $11,809 in transportation • $7,558 in leisure services � $9,450 in capitai outlay Canital Assets and Debt Administration Capital assets. The Village's capital assets for its governmental and business-type activities as of September 30, 2004 amounts to $23,888,848 (net accumulated depreciation). These assets include land, buildings, improvements other than buildings and machinery and equipment. The total decrease in the Village's capital assets for the current fiscal year was 4.6 percent. Governmental Business Activities Activities Total Land $ 402,935 $ 83,335 $ 486,270 Construction in progress 134,073 360,246 494,319 Buildings 4,767,001 979;512 5,746,513 Improvements 1,308,651 22,462,619 23,771,270 Equipment 2,481,644 889,027 3,370,671 Total capital assets 9,094,304 24,774,739 33,869,043 Less accumulated depreciation (2,544,702 (7,435,493 (9,980,195 Total capital assets; net $(2,544,702 $ 17,339,246 $ 23,888,848 Of the $1,230,629 (11.9) decrease in capital assets before depreciation for governmental-type activities, the majority of the decrease was the sale of land ($1,534,532). Of the $360,598 (1.5%) increase in capital assets before depreciation for business-type activities, the majority was additions in construction-in-progress projects including: • Expansion of the Water distribution system including the raw water main, Jupiter Heights and Tropic Vista extensions. Additional information on the Village's capital assets can be found in Note 7, Capital Assets, starting on page 38 of this report. Long-term Deb� At the end of the current fiscal year, the Village had no bonded debt. All of the Village's outstanding debt is secured by speci�ed revenue sources. -14- Village of Tequesta's Outstanding Debt Governmental Activities Business-tvue Activities Total 2004 2003 2004 2003 2004 2003 Revenue bonds, net $ 595,000 $ 695,000 $ 7,091,165 $ 7,247,255 $ 7,686,165 $ 7,942,255 Notepayable 4,669,648 4,838,352 645,170 13,827 5,314,818 4,852,179 Capitalleases 363,065 353,636 - - 363,065 353,636 Claims payable - 105,000 - - - 105,000 Compensated absences 339,490 366,894 117,798 105,968 457,288 472,862 Total $ 5,967,203 $ 6,358,882 $ 7,854,133 $ 7,367,050 $ i3,821,336 $ i3,725,932 � � � � � During the current fiscal year, the Village's net outstanding debt, increased by $95,404 less than 1%. Significant changes in the Village of Tequesta's outstanding debt is: • Principal on debt was paid down $481,868. • A new note was issued for $645,154 for water utility expansion projects • A new capital lease for $52,676 was entered into. • A worker's compensation ciaim of $105,000 was settled and paid. Additional information on the Village's long-term debt can be found in Note 9, Long Term Debt starting on page 40 of this report. Economic Factor and Next Year's Bud�ets and Rates • The unemployment rate for the Village of Tequesta is currently 5.7 percent, which is a decrease from a rate of 6.2 percent a year ago. • Inflationary trends in the region compare favorable to national indices • Property values have continued to increase and it is expected that there will be no need to raise taxes during the 2005 fiscal year. • All of these factors were considered in preparing the Village of Tequesta's budget for the 2005 fiscal year. The Village of Tequesta's water utility expects to add 108 customers once the Tropic Vista expansion project is completed in fiscal year 2005. The Village of Tequesta's water rates are changed each year based on calculations detailed in the Village's Code of Ordinances. Based on these calculations the water rates were increased 1.48% on October 1, 2004. Requests for Information This financial report is designed to provide a general overview of the Village of Tequesta's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Village of Tequesta, Finance Office, 250 Tequesta Drive, Suite 304, Tequesta, Florida 33469. -15- Page Intentionally Left Blank BASIC FINANCIAL STATEMENTS VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF NET ASSETS SEPTEMBER 30, 2004 Business- Governmental type Activities Activities Total ASSETS Cash and cash equivalents $ 566,216 $ 343,089 $ 909,305 Investments 4,891,795 5,672,351 10,564,146 Receivables, net 274,993 460,684 735,677 Inventories 34,939 19,701 54,640 Restricted assets: Cash and cash equivalents - 10,000 10,000 Investments - 597,655 597,655 Net pension asset 271,630 - 271,630 Other assets 6,234 179,000 185,234 Capital assets not being depreciated 537,008 443,581 980,589 Capital assets being depreciated, net 6,012,594 16,895,665 22,908,259 Total assets 12,595,409 24,621,726 37,217,135 LIABILITIES Liabilities: Accounts payable 344,694 486,876 831,570 Accrued liabilities 136,248 136,786 273,034 Payable from restricted assets: Deposits - 284,837 284,837 Due to pension funds 13,120 1,009 14,129 Due to other governments 7,324 - 7,324 Other current liabilities 3,352 - 3,352 Unearned revenue 253,741 30,732 284,473 Non-current liabilities: Due within one year 329,117 185,000 514,117 Due in more than one year 5,638,086 7,669,133 13,307,219 Totalliabilities 6,725,682 8,794,373 15,520,055 NET ASSETS Invested in capital assets, net of related debt 921,889 9,602,911 10,524,800 Restricted - 322,818 322,818 Unrestricted 4,947,838 5,901,624 10,849,462 Total net assets $ 5,869,727 $15,827,353 $ 21,697,080 See notes to basic �nancial statements. -16- VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF ACTIVITIES FISCAL YEAR ENDED SEPTEMBER 30, 2004 Net (Expense) Revenue and ProQram Revenues Changes in Net Assets Charges Operating Business- for Grants and Governmental type Funcrions/Programs Expenses Services Contributions Activities Activities Total Governmental activities: General government $ 1,105,741 $ 439,646 $ - $ (666,095) $ - $ (666,095) Transportation $04,523 - - (804,523) - (804,523) Public safety 4,138,374 538,056 43,945 (3,556,373) - (3,556,373) Leisure services 458,659 42,430 - (416,229) - (416,229) Interest on long term debt 262,479 - - (262,479) - 262,479 Total governmental activities 6,769,776 1,020,132 43,945 (5,705,699) - (5,705,699) Business-type activities: Water 3,975,766 3,931,562 - - (44,204) (44,204) Cominunity Development 513,101 348,511 - - (164,590) (164,590) Other enterprise activities 408,470 551,702 - - 143,232 143,232 Total business-type activities 4,897,337 4,831,775 � - (65,562) (65,562) Total $11,667,113 $ 5,851,907 $ 43,945 (5,705,699) (65,562) (5,771,261) � General revenues: Property taxes 3,781,095 - 3,781,095 Franchise fees based on gross receipts 372,212 - 372,212 Othertaxes 1,089,781 - 1,089,7$1 Intergovernmental 558,069 - 558,069 Gain (loss) on sales of capital assets (1,012,584) 3,850 (1,008,734) Unrestricted investment earnings 79,483 75,846 155,329 Miscellaneous revenues 83,126 82,576 165,702 Transfers (8,460} 8,460 - Total general revenues 4,942,722 170,732 5,113,454 Change in net assets (762,977) 105,170 (657,807) Net assets, beginning 6,632,704 15,722,183 22,354,887 Net assets, ending $ 5,869,727 $15,827,353 $ 21,697,080 See notes to basic financial statements. -17- VILLAGE OF TEQUESTA, FLORIDA BALANCESHEET GOVERNMENTALFUNDS SEPTEMBER 30, 2004 Other Total Governmental Governmental General Funds Funds ASSETS Cash and cash equivalents $ 432,622 $ 133,594 $ Sb6,216 Investments 3,783,091 1,108,704 4,891,795 Receivables, net 236,556 38,437 274,993 Inventories 34,939 - 34,939 Other assets 6,234 - 6,234 Total assets $ 4,493,442 $ 1,280,735 $ 5,774,177 LIABILITIES AND FL1ND BALANCES Liabilities: Accounts payable 330,520 $ 14,174 $ 344,694 Accrued liabilities 136,248 - 136,248 Due to pension funds 13,120 - 13,120 Due to other governments 7,324 - 7,324 Other current liabilities 3,352 - 3,352 Deferred revenue 233,989 19,752 253,741 Totalliabilities 724,553 33,926 758,479 Fund balances: Reserved for: Inventories 34,939 - 34,939 Encumbrances 15,570 68,921 84,491 Debt service - 272,801 272,801 Unreserved, reported in: General fund: Designated for: Disaster Relief 1,000,000 - 1,000,000 Tequesta Village Hall 2,019,198 - 2,019,198 Recreation and parks iO4,4b4 - 104,464 Capital Projects Fund - 514,935 514,935 Special Law Enforcement Fund - 15,692 15,692 Capital Improvements Fund - 374,460 374,460 Undesignated 594,718 - 594,718 Total fund balances 3,768,889 1,246,809 5,015,698 Total liabilities and fund balances $ 4,493,442 $ 1,280,735 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 funds. 6,549,602 Net pension asset is not considered to represent a financial asset and therefore is not reported in the governmental funds 271,630 Long-term liabilities, including bonds payable, not due and payable in the current period and therefore are not reported in the funds (5,967,203) Net assets of governmental activities $ 5,869,727 See notes to basic financial statements. -18- VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS ' FISCAL YEAR ENDED SEPTEMBER 30, 2004 Other Total Governmental Governmental General Funds Funds Revenues: Taxes $4,870,876 $ 372,212 $ 5,243,088 Tntergovernmental 596,947 - 596,947 Charges for services 477,513 - 477,513 Intragovernmental 341,700 - 341,700 Grants 43,945 - 43,945 Licenses and permits 4,480 89,121 93,601 Interest 75,668 3,815 79,483 Fines and forfeitures 54,810 2,603 57,413 ' Miscellaneous 83,126 - 83,126 Impact fees 1 i - 11,028 Total revenues 6,560,093 467,751 7,027,844 Expenditures: Current: General government 1,225,550 - 1,225,550 Public safety 3,902,259 15,539 3,918,798 Transportation 776,273 - 776,273 Leisure services 384,980 - 384,980 Capital outlay 117,575 250,728 368,303 Debt service: Principal 219,280 100,000 319,280 Interest 219,801 42,678 262,479 Total expenditures 6,845,718 409,945 7,255,663 Excess (deficiency) of revenues over expenditures (285,625) 57,806 (227,819) Other financing sources (uses): Transfers in 265,710 60,300 326,010 Transfers out - (334,470) (334,470) Proceeds from capital leases 52,676 - 52,676 Proceeds from sales of capital assets 521,948 - 521,948 Total other financing sources (uses) 840,334 (274,170) 566,164 Net change in fund balances 554,709 (216,364) 338,345 Fund balances, beginning 3,214,180 1,463,173 4,677,353 Fund balances, ending $ 3,768,889 $ 1,246,809 $ 5,015,698 See notes to basic �nancial 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 ACTIVTTIES - FISCAL YEAR ENDED SEPTEMBER 30, 2004 Amounts reported for governmental activities in the statement of activities (Page 17) are different because: Net change in fund balances - total governmental funds (Page i9) $ 338,345 Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. The details of the difference are as follows: Capital outlay $ 315,627 Depreciation expense (327,672) Net adjustment (12,045) In the statement of activities, only the loss on the sale of capital assets is � reported. However, in the governmental funds, the proceeds from the sale increase financiai resources. Thus, the change in net assets differs from the change iil fund balance by the cost of the capital assets sold. (1,534,532) The issuance of long-term debt provides curreilt financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. The detail of the differences are as follows: Capital lease proceeds (52,676) Principal payinents: 1994 revenue bonds 100,000 Notes payable 168,704 Capital leases 43,247 Net adjustment 259,275 Some expenses reported in the statement of activities do not require the use of curreut financial resources and, therefore, are not reported as expenditures in governmental funds: The details of the difference are as follows: Compensated absences 8,640 Claiins payable 105,000 Net pension expenses 72,340 Change in net assets of governmental activities (Page 17) $(762,977) � See notes to basic financial statements. -20- VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF NET ASSETS PROPRIETARY FUNDS � SBPTEMBER 30, 2004 � Business-type Activities Water Community Nonmajor Fund Development Funds Totals ASSETS Current assets: Cash and cash equivaients $ 317,273 $ 25,751 $ 65 $ 343,089 Investments 4,532,693 661,922 477,736 5,672,351 Accounts receivable 454,293 - 6,391 460,684 � Inventories 19,701 - - 19,701 Other assets 179,000 - - 179,000 Restricted assets: Cash 10,000 - - 10,000 Investments 597,655 - - 597,655 Total current assets 6,110,b 15 687,673 484,192 7,282,480 Non-current assets: Capital assets not being depreciated 435,703 - 7,878 443,581 Capitai assets being depreciated 15,534,741 7,374 1,353,550 16,895,665 Total non-current assets 15,970,444 7,374 1,361,428 17,339,246 Total assets 22,081,059 695,047 1,845,620 24,621,726 � LIABILITIES AND NET ASSETS Current liabilities: Accounts payable 399,010 36,048 51,818 486,876 Accrued liabilities 127,973 7,873 940 136,786 , Deferred revenue 29,870 862 - 30,732 Due to pension funds 597 412 - 1,009 Note payable, current portion 20,000 - - 20,000 Total current liabilities 577,450 45,195 52,758 675,403 Current liabilities payable from restricted assets: Deposits 284,837 - - 284,837 Current maturities of long-term debt 165,000 - - 165,000 Total current liabilities payable from from restricted assets 449,837 - - 449,837 Long-term Iiabilities: 1998 revenue bond payable, net of current maturities 6,926,165 - - 6,926,165 Notes payable, long-term portion 625,170 - - 625,170 Compensated absences 107,887 9,732 179 117,798 Total long-term liabilities 7,659,222 9,732 179 7,669,133 Totai liabilities 8,686,509 54,927 52,937 8,794,373 Net assets: Invested in capital assets, net of related debt 8,234,109 7,374 1,361,428 9,602,911 Restricted 322,818 - - 322,818 Unrestricted 4,837,b23 632,746 431,255 5,901,624 Total net assets $13,394,550 $ 640,120 $1,792,683 $15,827,353 See notes to basic financial statements. -21- VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF R.EVENUES, EXPENSES AND CHANGES 1N NET ASSETS PROPRIETARY FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2004 Business-type Activities Water Community Nonmajor Fund Development Funds Totals Operating revenues: Charges for services $ 3,931,562 $ 64,646 $ 551,702 $ 4,547,910 Licenses and permits - 283,865 - 283,865 Total operating revenues 3,931,562 348,5 i 1 551,702 4,831,775 Operating expenses: Personnel services 945,974 255,548 28,272 1,229,794 Purchased services 667,676 - 247,933 915,609 Depreciation 784,703 6,660 61,607 852,970 Repairs and maintenance 303,217 3,503 - 306,720 Management services 236,500 91,800 5,000 333,300 Contractual services 125,222 72,289 1,454 198,965 Professional services 72,075 66,726 64,204 203,005 Utilities 224,646 1,628 - 226,274 Operating supplies 81,098 - - 81,098 • Other 63,463 5,583 - 69,046 Insurance 58,956 5,772 - 64,728 Office supplies 29,583 3,025 - 32,608 Travel and per diem 2,309 567 - 2,876 Total operating expenses 3,595,422 513,101 408,470 4,516,993 Operating income (loss) 336,140 (164,590) 143,232 314,782 Non-operating revenues (expenses): Miscellaneous revenue 82,576 - - 82,576 Investment income 57,101 11,680 7,065 75,846 Interest expense (380,344) - - (380,344j Gain on sale of capital assets 3,850 - - 3,850 Total non-operating revenues (expenses) (236,817) i 1,680 7,065 (218,072) Income (loss) before transfers 99,323 {152,910) 150,297 96,710 Transfers in 450,000 68,760 - 518,760 Transfers out - (450,000) 60,300) (510,300) Change innetassets 549,323 (534,150) 89,997 105,170 Net assets, beginning 12,845,227 1, i 74,270 1,702,686 15,722,183 Net assets, ending $13,394,550 $ 640,120 $1,792,683 $15,827,353 See notes to basic financial statements. -22- VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2004 Business-type Activities Water Comrnunity Nonmajor Fund Development Funds Totals Cash flows from operating activities: Cash received from customers, governments and other funds $3,888,440 $ 348,511 $ 550,174 $4,787,125 Cash paid to suppliers (1,636,875) (221,993) (291,016) (2,149,884) Cash paid to employees 919,353) (246,989) (28,157) 1,194,499) Net cash provided by {used in) operating activities 1,332,212 (120,471) 231,001 1,442,742 Cash flows from non-capital financing activities: Transfers from other funds 450,000 68,760 - 518,760 Transfers to other funds - (450,000) (60,300) (510,300 Net cash provided by (used in) non-capital financing activities 450,000 (381,240) (60,300) 8,460 Cash flows from capital and related financing activities: Acquisition and construction of fixed assets (295,029) - (88,724) (383,753) Proceeds from sale of capital assets 3,850 - - 3,850 Principal payrnents (173,827) - - (173,827) Proceeds from note payable 645,170 - - 645,170 Interest paid (380,344) - - (380,344) Net cash used in capital and related financing activities (200,180) - (88,724 (288,904) Cash flows from investing activities: Purchases of irtvestments {2,059,729) (80,078) (342,915) (2,482,723) Sales of inveshnents 410,301 595,674 252,724 1,258,699 Interest received on inveshnents 57,101 11,680 7,065 75,846 Net cash provided by (used in) investing activities (1,592,327) 527,276 (83 (1,148,178) Net increase (decrease) in cash and cash equivalents (10,295) 25,565 {1,150) 14,120 Cash and cash equivalents, beginning 337,568 186 1,215 338,969 Cash and cash equivalents, ending $ 327,273 $ 25,751 $ 65 $ 353,089 Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Operating income (loss) $ 336,140 $(164,590) $ 143,232 $ 314,782 Miscellaneous revenue 82,576 - - 82,576 Depreciation and amortization 788,613 6,660 61,607 856,880 Changes in operating assets and liabilities: (Increase) decrease in: Accounts receivable (t65,001) - - (165,001) Inventories 3,194 - - 3,194 Other assets 8,553 155 8 8,716 Increase (decrease) in: Accounts payable 212,117 28,642 {1,528) 239,231 Accrued liabilities 26,622 8,561 27,682 62,865 Other liabilities 9,433 - - 9,433 Defened revenue 29,870 (50) - 29,820 Due to other funds 95 151 - 246 Net cash provided by {used in) operating activities $1,332,212 $(120,471) $ 231,001 $1,442,742 See notes to basic financial statements. -23- VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF FIDUCTARY NET ASSETS FIDUCIARY FUNDS � SEPTEMBER 30, 2004 Pension Trust Funds ASSETS Cash and cash equivalents $ 343,744 Investments, at fair value: Corporate stocks 1,564,284 Corporate bonds 290,318 Government backed assets 631,380 Due from other funds 14,129 Total assets 2,843,855 LIABILITIE5 AND NET ASSETS Accounts payable 16,445 Net assets held in trust for pension benefits $ 2,827,410 See notes to basic financial statements. -24- VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FIDUCIARY FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2004 Pension Trust ADDITIONS Funds Contributions: Employer $ 176,537 Employee 123,800 State 124,486 Total contributions 424,823 Investment income Net appreciation in fair value of investments 123,341 Investment earnings 66,868 190,209 Less investment expenses 60,973 Net investment income 129,236 Total additions 554,059 DEDUCTIONS Pension bene�ts 26,740 Total deductions 26,740 Net increase 527,319 Net assets held in trust for pension benefits: Net assets, beginning 2,300,091 Net assets, ending $ 2,827,410 See notes to basic �nancial statements. -25- NOTES TO BASIC FINANCIAL STATEMENTS VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2004 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Village of Tequesta, Florida is a municipal corporation organized in 1957 pursuant to Special Act 57-1915, Laws of Florida. The Village has a Council-Manager form of government. The Village's major operations include public safety (police, fire rescue/EMS), streets and roads, culture and recreation, public improvements, planning and zoning, water, stormwater, recycling services and generai and administrative. The financiai statements of the Village have been prepared in conformity with accounting principles generally accepted in the United States (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental and financial reporting principles. The more significant of the Village's accounting policies are described below: a. The Financial Reporting Entity The financial staxements were prepared in accordance with government accounting standards, which establishes standards for defining and reporting on the financial reporting entity. The definition of the financial reporting entity is based upon the concept that elected officials are accountable to their constituents for their actions. One of the objectives of �nancial reporting is to provide users of �nancial statements with a basis for assessing the accountability of the elected officials. The financial reporting entity consists of the Village, organizations for which the Village is financially accountable and other organizations for which the nature and significance of their relationship with the Village are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. The Village is financially accountable for a component unit if it appoints a voting majority of the organization's governing board and it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the Village. Based upon the application of these criteria, the Village Employees' Retirement System (the Retirement System) meets the criteria described above and has been included in the accompanying financial staxements. The Retirement System functions for the benefit of the employees and is governed by a seven member board, of which the Village Council appoints #hree members. The Village and Retirement System members are obligated to fund all Retirement System costs based upon actuarial valuations. The Village funds the difference between member and other contributions and the actuarial cost. Considering these factors, it has been determined that the Retirement System is �scally dependent on the Village, which makes the Retirement System a component unit of the Village. Since the Retirement System provides services exclusively for the benefit of the Village, the Retirement System is reported as a blended component unit, specifically as the Village Employees' Retirement System. The Village Employees' Retirement System administers the following Plans: The General Employees' Pension Trust Fund, which does not issue a stand aIone financial report, and The Public Safety Officers' Pension Trust Fund which consists of The Firefighters' Pension Trust Fund, and The Police Officers' Pension Trust Fund. The Public Safety Officers' Pension Trust Fund issues a stand alone financial report. -26- , VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) b. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the staxement of net assets and the statement of activities) report information on all of the non-fiduciary activiries of the Village. For the most part, the effect of interfund activity has been removed from these statements. Governmentad activities, which normally are supported by taxes and intergovernmental revenues, are reported separateiy from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. - Separate financial statements are provided for governmental funds, proprietary funds, and . fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. All remaining nonmajor governmental funds or proprietary funds are aggregated and reported as other governmental or other proprietary funds. c. Measurement Focus, Basis of Accounting and Sasis of Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recarded 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 ail 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 pe�iod. For this purpose, the Village considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. -27- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASiC FINANCIAL STATEMENTS � {Continued) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) c. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued) Property taxes, franchise fees and other taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is re�eived by the Village. The Village reports the following major governmental funds: The General Fund is the Village's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Village also reports the following nonmajor government funds: The Special Revenue Fund accounts for revenue sources that are legally restricted to expenditures for specific resources. The Special Revenue Fund accumulates revenues as required by the Improvement Revenue Refunding Bonds, Series 1994. These revenues include franchise fees and occupational licenses. The Special Law Enforcement Fund accounts for forfeitures received by the Police Department. The forfeitures must be expended for certain law enforcement purposes as prescribed by Florida Statue Chapter 932.704. The Capital Improvement Fund is used to account for the maintenance and upkeep of the Village's general infrastructure (such as roads, bridges, sidewalks and storm water drainage systems) and streetscape beautification projects. The Capital Projects Fu�d accounts for the acquisition or construction of various major capital projects. The Village reports the following major proprietary funds: The Water Fund is used to account for the activities of the water operations. � The Community Development Fund is used to account for the fees charged for site plan review, building inspections, and zoning work. The Village also reports the following nonmajor proprietary funds: The Stormwater Utility Fund accounts for the construction and maintenance of the Village's stormwater system. The Refuse and Recycling Fund is used to account for the fees charged for solid waste and recyclable material colleceion. -28- VII.LAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) NOTE 1. SUMMARY OF SIGI�TIFICANT ACCOUNTING POLICIES (Continued) c. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued) Additionally, the Village reports the following fiduciary funds: The Firefighters' Pension Trust Fund accounts for the accumulation of resources and for contributions and benefits of the firefighter employees. The Police Officers' Pension Trust Fund accounts for the accumulation of resources and for contributions and benefits of the police employees. The General Employees' Trust Fund accounts for the accumulation of resources and for contributions and benefits for the general employees of the Viliage. 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 entetprise funds, subject to this same limitation. The Village has elected not to foilow subsequent private- sector guidance. As a general rule, the effect of interfund activity has been eliminated from the government- wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the Village's various utility functions and various other functions of the Village. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The � principal operating revenues of the Village's water utility, stormwater utility and solid waste services funds are charges to customers for services. Operating expenses for proprietary funds include the costs of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. -29- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS � (Continued) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) d. Assets, Liabilities, and Net Assets or Equity 1. Deposits and Investments The Village's cash and cash equivalents include cash.on hand, time and demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition and investments with the Seate Board Investment Pool. Short-term investments, except the State Board Investment Pool, are reported at cost, which approximates fair value. The Investment Pool is recorded at its valne of the pool shares (2A-7 Pool) which is fair value. The nature of investments is governed by the provisions of Florida Statutes Section 218. Under this statute, authorized investments are limited, unless otherwise authorized by law or ordinance, to the local government surplus funds tnzst fund, money maxket funds, direct or unconditionally guaranteed obligations of the United States Government, obligations of certain governmental agencies, interest bearing time deposits or savings acconnts. 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 tolfrom other funds". Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." 3. Inventories Inventories of the general fund are valued at cost on a first-in, first-out (FIFO) method. Inventories consist of expendable supplies held for consumption. The cost is recorded as an expenditure at the time individual inventory items are purchased. Inventories of the Water Fund are valued at lower of cost (determined using the weighted average) or market and consist of pipes, valves, fittings and meters. The cost is recorded as an expenditure at the time individual inventory items are put into service. 4. Capital Assets Capital assets, which include property, plant and equipment, and certain infrastnzcture assets acquired prior to the implementation of GASB 34, (e.g., utility plant, roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. 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. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. -30- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) � NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) d. Assets, LiabiliNes, and Net Assets or Eqnity {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 assets lives a�e 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 . capitaliz.�d value of the asset constructed. Approximately $8,100 of interest expense was capitalized in 2004. Capital assets of the Viliage are depreciated using the straight line method over the following estimated useful lives: Buildings 20 — 40 years Improvements 20 — 30 years Equipment 3 —10 years - GASB Statement No. 34 allows municipalities a four year period from the date of implementation to record the various components of infrastructure assets. The Village capitalizes current year additions only. 5. Compensated Absences It is the Village's policy to permit employees to accumnlate within certain limits, earned ' but unused vacation time and sick leave, which will be paid to employees upon separation from Village service. All vacation and sick leave pay is accrued when incurred in the government-wide, and proprietary fund financial statements. In the governmental funds, a liability is recorded only for unused vacation and sick leave payouts for empioyees who have separated, for example, as a result of employee resignations and retirements. For the governmental funds, compensated absences are liquidated by the general fund. 6. Long-Term Obligations In the government-wide financial statements, and proprietary fund types in the 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 rype statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line amortization method. The result of using this method does not differ significantly from the effective interest method. . Bonds payable are reported net of the applicable bond premium or discount. -31- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) NOTE 1. SUMMARY UF 5IGNIFICANT ACCOUNTING POLICIES (Continued) d. Assets, Liabilities, and Net Assets or Equity (Continued) 6. Long-Term Obligations (Continued) In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is repqrted 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 confonmity with accounting principles. generally. accepted in the United States. Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and revenue and expenses during the period reported. These estimates include assessing collectibility of accounts receivable, the pension obligations, and useful lives and impairment of tangible assets, among others. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the financial statements in the period they are determined to be necessary. Actual results may differ from those estimates. 8. Fund Equity In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance, where noted, represent tentative management plans that are subject to change. NOTE 2. PROPERTY TAXES Ad valorem taxes are assessed and liened as of January ls` and billed the following October. They are due and payable on November 1S` of each year or as soon thereafter as the assessment � roll is certified and delivered to the Tax Collector. These taxes are collected by the County and remitted to the Village. Revenue is recognized at the time monies are received from the County. All unpaid taxes become delinquent on April 1 following the year in which they are assessed. Discounts are allowed for early payment at the rate of 4% in the month of November, 3°�o in the month of December, 2% in the month of January and 1% in the month of February. The taxes paid in March are without discount. At September 30` unpaid delinquent taxes, if any, are reflected as a receivable on the balance sheet. -32- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMFNTS (Continued) . NOTE 2. PROPERTY TAXES (Continued) Assessed values are established by the Pa1m Beach County Property Appraiser at approximately fair market value. The assessed value of property at January l, 2003, upon which the 2003-2004 levy was based, was approximately $596 million. Under Florida law, the assessment of all properties and the collection of all county, municipal, school district and special district property taxes are consolidated in the offices of the County Property Appraiser and County Tax Collector. The Village is permitted by Article 7, Section 8 of the Florida Constitution to levy taxes up to $10 (10 mills) per $1,000 of assessed valuation for general governmental services (other than the payment of principal. and interest on general obligation long-term debt). In addition, uniimited 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, 2004 was 6.4980 mills per $1,000 of assessed valuation. There were no material delinquent property taxes at September 30, 2004. NOTE 3. DEPOSITS AND INVESTMENTS Deposits In addition to insurance provided by the Federal Depository Insurance Corporation, deposits are held in qualified public depositories pursuant to Florida Statutes, Chapter 280, Florida Security for Public Deposits Act. Under the Act, all qualified public depositories are required to pledge eligible collateral with the Treasurer or another banking institution. In the event of a failure of a qualified pubiic depository, the remaining public depositories would be responsible for covering any resulting losses. Accordingty, all deposits are considered insured or collateralized with securities held by the entity or it's agent in the entity's name. Investnzents Investments consist of the Local Government Surplus Funds Trust Fund administered by State Board of Administration and investments held by the Village's retirement funds. The Local Government Surplus Funds Trust Fund is governed by Ch. 19-7 of the Florida Administrative Code, which identifies the Rules of the State Board of Administration. These rules provide guidance and establish the general operating procedures for the administration of the Local � Government Surplus Funds Trust Fund. Additionally, the Office of the Auditor General performs the operational audit of the activities and investments of the State Board of Administration. The Local Government Surplus Funds Trust Fund is not a registrant with the Securities and Exchange Commission (SEC); however, the funds have adopted operating procedures consistent with the requirements for a 2a-7 fund. -33- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) NOTE 3. DEPOSITS AND INVESTMENTS (Continued) Investments (Continued) Florida Statutes authorize the Village to invest surplus funds in the Local Government Surplus Funds Trust Fund, negotiable direct obligations of or obligations unconditionally guaranteed by the U.S. Government; interest bearing time deposits in financial institutions located in Florida and organized under Federal or Florida laws; obligations of the Federal Farm Credit Banks, the Federal Hotne Loan Mortgage Corporation, the Federal Home Loan Bank or its district banks, or obligations guaranteed by the Government National Mortgage Association and obligations of the Federal National Mortgage Association. Investments (including restricted investments) consist of funds held with the state investment pool, obligations of the United States government and funds held by an outside custodian on behalf of the Pension Trust Funds. The Village's investments are categorized below to give an indication of the level of custodial credit risk assumed by the Village at year end. Category 1 Insured or registered, or securities held by the Village or its agent in the Village's name. Category 2 Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the Village's name. Category 3 Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Village's name. At year end, the Village's investment balances were as follows: Cate�orv 3 Fair Value Money market funds $ 343,744 $ 343,744 Corporate bonds 290,318 290,318 Government backed securities 631,380 631,380 Corporate stocks 1,564,284 1,564,284 $ 2,829,726 2,829,726 Investments not subject to categorization: State investment pool 11,161,802 Total $13,991,528 The state investment pool, administered by the State Board of Administration of Florida, contained certain floating rate notes during the fiscal year and at September 30, 2004, which were indexed based on the prime rate andlor one and three month LIBOR rates. -34- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FTNANCIAL STATEMENTS . {Continued) NOTE 3. DEPOSITS AND INVESTMENTS (Continued) Investments (Continued) A reconciliation of cash and investments as shown on the statement of net assets is as follows: Primary government: Current assets: Cash and cash equivalents $ 909,345 Investments 10,564,146 Restricted assets: Cash and cash equivalents 10,000 Investmerits 597,655 Total primary government 12,081,106 Fiduciary funds: Cash and cash equivalents 343,744 Investments 2,485,982 Total fiduciary funds 2,829,726 Total government $14,910,832 Total government: Deposits � $ 1,263,049 Investments 13,647,783 Total government $14,910,832 NOTE 4. RECEIVABLES Receivables at September 30, 2Q04 are as follows: Nonmajor and Other General Water Funds Total Customers billed $ 82,841 $ 458,793 $ 4,846 $ 546,480 Property talces 146,561 - - 146,561 Miscellaneous 38,633 - 1,545 Franchise fees - - 38,437 38,437 Gross receivables 268,035 458,793 44,828 771,656 Less allowance for uncollectibles 31,479 4,500 - 35,979 Net total receivables $ 236,556 $ 454,293 $ 44,828 $ 735,677 -35- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) NOTE 4. RECEIVABLES (Continued) Governmental funds defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of deferred revenue reported in the governmental funds were as follows: Deferred Prepayments on Sprint lease (general fund) $ 50,968 Prepayments on T-Mobile lease (general fund) 158,988 Advance receipts for special events (general fund) 24,034 Licenses and registrations not yet due (special revenue fund) 19,752 $ 253,742 NOTE 5. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS Individual fund interfund receivables and payables at September 30, 2004 are as follows: Receivabie Fund Payable Fund Fire Employees Pension General $ 7,262 General Employees Pension General 3,008 Police Employees Pension General 2,851 General Employees Pension Water 597 General Employees Pension Community Development 355 Police Employees Pension Community Development 57 General Employees Pension Fire Employees Pension 3,754 General Employees Pension Police Employees Pension 4,943 Total $ 22,827 Outstanding balances between funds are the result of timing differences between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, or (3) payments between funds are made. -36- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS . (Continued) NOTE 5. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (Continued) Interfund transfers during the year ended September 30, 2004 are as follows: Transfers � Community Nonmajor General Development Water Governmental Transfers Out Fund Fund Fund Fund Total Nonmajor Governrriental $ 265,710 $ 68,760 $ - $ - $ 334,470 Community Development - - 450,000 - 450,000 Stormwater Utility - - - 60,300 60,300 Total $ 265,710 $ 68,760 $ 450,000 $ 60,300 $ 844,770 Transfers are used to (1) move excess revenues from special revenue fund as required by bond covenants, (2) fund the water plant expansion, or (3) service debt obligations. Interfund Adrrcinistrative Fee During the year ended September 30, 2004, the Enterprise Funds remitted $341,700 to the General Fund for administrative management fees. This amount is reflected as Intragovernmental Services revenue in the General Fund and as management fees, an operating expense, in the Enterprise Funds. NOTE 6. RESTRICTED ASSETS Restricted assets as of September 30, 2004 consist of the following accounts: Cash and cash Equivalents Investments Total Customer deposits $ 10,000 $ 274,837 $ 284,837 12enewal and replacement - 196,578 196,578 Debt service - 126,240 126,240 Total restricted assets $ 10,000 $ 597,655 $ 607,b55 -37- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) NOTE 7. CAPITAL ASSETS Capital asset activity for the year ended September 30, 2004 was as follows: Beginning Ending Balance Additions Deductions Balance Government activities: Capital assets not being depreciated: Land $ 1,937,467 $ - $(1,534,532) $ 402,935 Construction in progress 94,112 39,961 - 134,073 Tota1 capital assets not being depreciated 2.,031,579 39,961 (1,534,532) 537,008 Capital assets being depreciated: Buildings 4,741,552 25,449 - 4,767,001 Tmprovements other than buildings 1,130,447 178,204 - 1,308,651 Equipment 2,421,355 72,013 (1 i,724) 2,481,644 Total capital assets being depreciated 8,293,354 275,666 (11,724) 8,557,296 Less accumnlated depreciation for: Buildings 194,544 118,852 - 313,396 Improvements other than buildings 188,117 48,784 - 236,901 Equipment 1,846,093 160,036 (11,724) 1,994,405 Total accumulated depreciation 2,228,754 327,672 (11,724) 2,544,702. Total capital assets being depreciated 6,064,600 (52,006) - 6,012,594 Governmental activities capital assets, net $ 8,096,179 $(12,045) $(1,534,532) $ 6,549,602 Business-type activities: Capital assets not being depreciated: Land $ 83,335 $ - $ - $ 83,335 Construction in progress 143,755 216,491 - 360,246 Total capital assets not being depreciated 227,090 216,491 - 443,581 Capital assets being depreciated: Buildings 979,512 - - 979,512 Improvements other than buildings 22,332,224 130,395 - 22,462,619 Equipment 875,315 36,$66 (23,154) 889,027 Total capital assets being depreciated 24,187,051 167,261 (23,154) 24,331,158 Less accumulated depreciation for: Buildings 381,652 24,488 - 406,140 Improvements other than buildings 5,852,749 702,568 - 6,555,317 Equipment 371,276 125,914 (23,154) 474,036 Toeal accumulated depreciation 6,605,677 852,970 (23,154) 7,435,493 Total capital assets being depreciated, net 17,581,374 (685,709) - 16,895,665 Business-type activities capital assets, net $17,808,464 ${469,218 $ - $17,339,246 -38- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) NOTE 7. CAPITAL ASSETS (Continued) Depreciation expense was charged to functions/programs of the Village as follows: Governmental activities: General government $ 6,167 Public safety 219,576 Transportation 28,250 Leisure services 73,679 Total depreciation expense - governmental activities $ 327,672 Business-type activities: Water 784,703 Community development 6,660 Other enterprise activities 61,607 Total depreciation expense - business-type activities $ 852,970 NOTE 8. CAPITAL LEASES The Village entered into a capital lease in the amount of $397,922 during February 2003 for the financing of a fire pumper. The applicable interest rate is 3.61Q% and interest and principa.l payments are due annually on April 15` The lease expires on April 15, 2012. The following is a schedule of the future minimum lease payments under this capital lease arrangement at September 30, 2004: Fiscal year ending September 30: 2005 $ 46,720 2006 46,720 2007 46,720 2008 46,720 2009 46,720 2010-12 140,160 Total minimum lease payments 373,760 Less amount representing interest 54,078 Present value of future minimum lease payments $ 319,682 The Village entered into a capital lease in the amount of $30,678 during December 2003 for the financing of a 2004 Chevrolet Tahoe. The applicable interest rate is 6.510%. Interest and principal payments are due monthly. The lease expires on December 1, 2008. -39- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) NOTE 8. CAPITAL LEASES (Continued) The following is a schedule of the future minimum lease payments under this capital lease arrangement at September 30, 2004: Fiscal year ending September 30: 2005 $ 7,143 �p06 7,143 2007 7,143 2008 7,143 2009 1,786 Total minimum lease payments 30,358 Less amount representing interest 3,702 Present value of future minimum lease payments $ 26,656 The Village entered into a capital lease in the amount of $21,998 during January 2004 for the financing of a 2004 Ford F-150 truck: The applicable interest rate is 4.63%. Interest and principal payments are due monthly. The lease expires on December l, 2006. The following is a schedule of the future minimum lease payments under this capital lease arrangement at September 30, 2004: Fiscal year ending September 30: 2005 $ 7,867 2006 7,868 2pp� 1,967 Total minimum lease payments 17,702 Less amount representing interest 973 Present value of future minimum lease payments $16,729 NOTE 9. LONG-TERM DEST Governmental Activities � Revenue Bonds — I994 The Village issued Improvement Revenue Refunding Bonds, Series 1994, in the amount of $1,365,000 with an interest rate of 6.15% dated June 24, 1994 and a maturity date of July 1, 2009. Pursuant to the Bond Resolution, 16-93/94, the Village is obligated to use Franchise Fees and Occupational Licenses Fees to pay the principal and interest on the bonds. At September 30, 2004, $595,000 of this issue was outstanding. Remaining revenues after all principal and interest payments may be used for any lawful purpose. -40- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FiNANCIAL STATEMENTS (Continued) NOTE 9. LONG-TERM DEBT (Continued) Governmental Activities (Continued) Revenue Bonds - I994 (Continued) Debt service requirements to maturity aze as follows: Principal Interest Total Year ending September 30: 2005 $ 105,000 $ 36,592 $ 141,592 ' 2006 110,000 30,135 140,135 2007 120,000 23,370 143,370 2008 125,000 15,990 140,990 2009 135,000 8,303 143,303 Total $ 595,000 $ 114,390 $ 709,390 Note Payable On September 13, 2002, the Village Council authorized managernent to enter into a $5,000,000 loan agreement with a bank, due $31,042 per month including interest at 4.28%, maturing September 2022. Proceeds from the note are to be used to finance the final construction of the public safety facility, to repay existing debt obligations and to reimburse the Village for prior capital expenditures incurred in connection with the construction of the public safety facility. The loan principal and interest amounts are to be repaid from non ad valorem tax revenues. Debt service requirements to maturity are as follows: Principal Interest Total Year ending September 30: 2005 $ 176,068 $ 196,433 $ 372,501 2006 183,753 i88,748 372,501 2007 i91,774 180,727 372,501 2008 20Q143 172,358 372,501 2009 208,881 163,620 372,501 2010-2014 1,189,393 673,112 1,862,505 2015-2019 1,472,649 389,856 i,862,505 2020-2022 1,046,987 70,Si7 1,117,504 Tofal $ 4,669,648 $ 2,035,371 $ 6,705,019 -41- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) NOTE 9. LONG-TERM DEBT (Continued) � Business-type Activities Water Revenue Bonds —1998 The Village issued Water Revenue Bonds, Series 1998, in the amount of $7,915,000 with a varying interest rate of 3.8% to 5.125% dated Maxch 1, 1998 and a maturity date of March 2028. Pursuant to the Bond Resolution, 7-97/98, the Village is obligated to establish and maintain required reserves as noted in Note 10 — Required Reserves. At September 30, 2004, the outstanding balance was $7,185,000. Debt service requirements to maturity axe as follows: Principal Interest Total Year ending September 30: 2005 $ 165,000 $ 356,255 $ 521,255 2006 170,000 348,885 518,885 2007 180,000 341,185 521,185 2008 185,000 333,015 518,015 2009 195,000 324,415 519,415 2Q 10-2014 1,130,000 1,468,610 2,598,610 2015-2019 1,450,000 1,144,155 2,594,155 2020-2024 1,855,000 722,753 2,577,753 2025-2028 1,855,000 196,159 2,051,159 Total 7,185,000 5,235,432 12,420,432 Less unamortized discount (93,835 - (93,835 $ 7,091,165 $ 5,235,432 $12,326,597 Note Payable On June 30, 2004, the Village entered into a note payable agreement to finance the cost of the water main system. The Village financed $645,170 over a term of 19 years at an interest rate of 4.96%. The note matures on May 1, 2024. -42- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) _ NOTE 9. LONG-TERM DEBT (Continued) Note Payable (Continued) Debt service requirements to maturity are as follows: Princinal Interest Payments Year ending September 30: 2005 $ 20,000 $ 32,000 $ 52,000 2006 20,000 31,008 51,008 2007 21,000 30,016 51,016 2008 23,000 28,975 51,975 2009 24,000 27,834 51,834 2010-2014 137,000 120,273 257,273 2015-2019 176,000 82,676 258,676 2020-2024 224,170 3 i,877 256,047 Total $ 645,170 $ 384,660 $1,029,830 Changes in Long-Term Debt The following is a sumrmary of long-term debt for the year ended September 30, 2004: Due Beginning Ending Within Balance Additions Deletions Balance One Year Governmental activities: Revenue bonds - 1994 $ 695,000 $ - $ (100,000) $ 595,000 $105,000 Note payable 4,838,352 - (168,704) 4,669,648 i76,068 Capitalleases 353,b36 52,676 (43,247) 363,065 48,049 Claims payable i05,000 - (105,000) - - Compensated absences 366,894 88,350 (115,754 339,490 - $ 6,358,882 $141,026 $ (532,705 $ 5,967,203 $ 329,117 Business-type activities: Revenue bonds - 1998 $ 7,345,000 $ - $ (160,000) $ 7,185,000 $165,000 Unamortized bond discount {97,745 - 3,910 (93;835 - 7,247,255 - (156,090) 7,091,165 165,000 Note payable 13,827 645,170 {13,827) 645,170 20,000 Compensated absences 105,968 51,984 (40,154 117,798 - $ 7,367,050 $ 697,154 $ (210,071 $ 7,854,133 $185,000 For the governmental activities, claims and judgments and compensated absences are generally liquidated by the general fund. -43- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) NOTE 9. LONG-TERM DEBT (Continued) Defeasance of Long-Term Debt In a prior year, the Village defeased the i978 Series $3,915,000 Water Revenue Refunding Bonds by pla�ing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account's assets and the liability for the defeased bonds are not included in the Village's financial statements. At September 30, 2004, $1,905,000 was still outstanding. NOTE 10. REQUIRED RES�RVES The Bond Resolution of •the Water Revenue Bonds Series 1998 requires the establishment of the following accounts: Account Pur ��ose Construction To accumulate funds for payment of construction costs. Revenue To collect the entire gross revenues derived from the water system except investment earnings. Debt service To accumulate sufficient funds to meet the annual debt service requirements through transfers from the revenue account. Operation and maintenance To pay all operating expenses of the system. Rebate To accumulate funds to meet any possible arbitrage rebate expenses, if required. Renewal and replacement To accumulate funds for the purpose of paying for the cost of extensions, additions to, or the replacement of capital assets of the system. Reserve To accumulate funds for payment of principal and interest only if funds in the debt service funds are insufficient. Rate stabilization To accumulate funds to be used for any lawful purpose including making deposits in the revenue account. Impact fees To accumulate impact fee revenue received each fiscal year. To be used in the event that funds in the revenue account are insufficient to funds the debt service account. The reserves for revenue bond retirement and renewal and replacement represent the total of restricted assets less amounts payable from restricted assets as reported in the water fund. The Village has established all of the required reserve accounts. -44- VILLAGE OF TEQUESTA, FLORIDA . NOTES TO BASIC FINANCIAL STATEMENTS (Continued) . NOTE 11. FLORIDA RETIREMENT SYSTEM Plan Description All fuli time employees hired before January l, 1996 are eligible to participate in the Florida Retirement System (FRS), a cost sharing, multiple-employer, public retirement system controiled by the State Legislature and administered by the State of Florida Department of Admiriistration, Division of Retirement. The FRS provides retirement and disabitity benefits, annual cost of living adjustments and death benefits to plan members and beneficiaries. A post empIoyment health insurance subsidy is also provided to eligible employees. Benefits are established by Chapter 121, Florida Statutes and Chapter 22B, Florida Administrative Code. Amendments to the law can only be made by an act of the Florida Legislature. The State of Florida issues a publicly available financial report that includes financial statement and required supplementary information for the FRS. The latest available report was for the fiscal year ended June 30, 2004. That report may be obtained by writing to the State of Florida Division of Retirement, Department of Management Services, 2639-C North Monroe Street, Tallahassee, Florida 32399-1560. Funding Policy The FRS funding policy provides for monthly employer contributions at actuarially determined rates that, expressed as percentages of annual covered payroll are adequate to accumulate sufficient assets to pay benefits when due (see Plan Description for current rates below). Level percentage of payroll employer contribution rates, established by state law, are determined using the entry-age actuarial cost method. If an unfunded actuarial liabiliry reemerges as a result of future plan benefit changes, assumption changes, or methodology changes, it is assumed any unfunded actuarial liability would be amortized over 30. years, using level doilar amounts. Except for gains reserved for rate stabilization, it is anticipated future actuarial gains and losses are amortized on a roiling 10% basis, as a level dollar amount. The contribution rates by job class for the Village's employees at September 30, 2003 were as follows: regular employees — 739%, special risk employees — 18.53% and senior management — 9.11%. These rates include 1.11% for the employer Health Insurance Subsidy contribution, which is the same for all risk classes and 0.10% administrative fee from which senior management is exempted. The Village's contributions to the FRS for the fiscal years ended September 30, 2002, 2003 and 2004 were $160,655, $132,734 and $156,343, respectively, which were equal to the required contributions for each fiscal year. -45- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM The Village maintains a single-employer, defined benefit pension retirement system. The retirement system provides benefits to all full time �refighters, as well as any full time police officers or general employees hired January 1, 1996 or thereafter. In 1999, the Plans were amended, establishing a separate plan for public safety officers (firefighters and police off'icers) and a separate plan for general employees. The retirement system was established by the Village and is administered by two separate Boards of Trustees (public safety officers and general employees). The retirement system receives contributions that may not be used to pay the benefits of all employee classes. Due to. this restriction, for financial statement purposes, three separate p�ans are shown as pension trust funds. The Village Employees' Retirement System administers the following plans: The Public Safety Officers' Pension Trust Fund which includes The Firefighters' Pension Trust Fund {FPTF), and The Police Officers' Pension Trust {PPTF) and the General Employees' Pension Trust Fund (GPTF). The Public Safety Officers' Pension Trust Fund issues stand alone financial statements that may be obtained by contacting the Board of Trustees at the Village of Tequesta. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Pension ?'rust Funds Basis of Accounting The pension trust funds are reported on the accrual basis of accounting. Plan member and state contributions are recognized as revenues in the period that the contributions are due. Employer contributions to each plan are recognized when due and the employer has made a formal commitment to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Method Used to Value Investments Investments are reported at fair value. Short-term investments are reported at cost which approximates fair value. Securities traded on a national or international exchange are valued at the last reported sales price at current exchange rates. Concentration of Investments The Plans did not have any single investment of 5% or more of net assets in any one organization. PLAN DESCRIPTION AND CONTRIB UTION INFORMATION The following descriptions of the Pension Trust Funds are provided for general information purposes only. Plan members should refer to the appropriate source documents for more complete information on the plans. -46- � VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FiNANCIAL STATEMENTS (Continued) NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued) PLAN DESCRIPTION AND CONTRIBUTION INFORMATION (Continued) Membership in each plan consisted of the following at October l, 2003 the date of the latest actuarial valuation: FPTF PPTF GPTF Retirees and beneficiaries currently receiving benefits and ternunated employees entitled to benefits but not yet receiving them - - - Active employees: Vested - - - Non-vested 16 9 25 Total 16 9 25 Benefit provisions and contribution requirements of plan members and the Village are established, and may be amended, only by the Village Council. a. Public Safety Officers' Trust Fund Plan Description Any firefighter or police officer who completes ten or more years of credited service and attains age 55, or completes 25 years of credited service and attains age 52, is eligible for normal rerirement benefits. The monthly amount of normal retirement income for a firefighter is equal to the number of years of credited service multiplied by 3°10 of his average highest compensation. Early retirement may be taken after a firefighter has attained the age of 50 and has ten years of credited service. In the event of early retirement, benefits are actuarially reduced to take into account the firefighter's younger age and earlier commencement of retirement benefits. Such reduction shall not exceed 4% per year. Disability benefits can be received for total and permanent disabilities as determined by the Board of Trustees. If the pension is granted, the benefit amount shall be as foliows: 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°Io of his average compensation, or (b) An amount equal to the number of years of his credited service multiplied by 3% of his average monthly salary based upon his highest five years of service. If the injury or disease is not service connected, the firefighter or police officer shall be entitled to the greater of (a) or (b): (a) A monthly pension equal to 25% of his average compensation, or (b) An amount equal to the number of years of his credited service multiplied by 3% of his average monthly salary based upon his highest five years of service. -47- VILLAGE OF TEQUESTA, FLORIDA NOTES T� BASIC FINANCIAL STATEMENTS (Continued) NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM {Continued) PLAN DESCRIPTION AND CONTRIB UTION INFORMATION (Continued) a. Public Safety Officers' Trust Fund (Continued) Plan Description (Continued) If the firefighter or police officer dies prior to retirement from the Village, his beneficiary shall receive the following benefit: (a) Line-of-Duty-Death-Benefit — a pension to the spouse (or children) of 50% of Average Compensation for life. (b) Non-Line-of- Duty-Death — the spouse of a member with ten years of credited service will receive the actuarial equivalent of the accrued early or normal retirement benefit. If the firefighter or police officer dies or terminates employment with less than ten years of credited service, he is entitled to a refund of the money he contributed. Funding Policy Firefighters and police officers are required to contribute 5% of their compensation to the plan. The State of Florida contributes the net proceeds of the excise tax imposed upon casualty and property insurance premiums on policies written within the Village. The Village is required to contribute the remaining actuarially determined amount to fund the plan using the aggregate actuarial cost method as approved by the plans' Board of Trustees. The aggregate method does not separately identify or amortized the unfunded actuarial liability. The Firefighters' Pension Fund (part of the Public Safety Officers' Trust Fund) does not issue a separate stand alone financial statements. Therefore, included. below is the Statement of Fiduciary Net assets and the Statement of Changes in Fiduciary Net Assets as of and for the year ended September 30, 2004. FIREFIGHTERS' PENSION FUND STATEMENT OF FIDUCIARY NET ASSETS SEPTEMBER 30, 2004 ASSETS Investments $1,899,000 Due from other funds 3,507 Total assets 1,902,507 LIABII.ITIES AND NET ASSETS Accounts payable 8,016 Net assets held in trust for pension benefits $1,894,491 -48- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS . (Continued) NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued) PLAN DESCRIPTION A1VD CONTRIBUTION INFORMATION (Continued) a. Public Safely Officers' Trust Fund (Continued) Funding Policy (Continued) FIREFIGHTERS' PENSION FUND STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FISCAL YEAR ENDED SEPTEMBER 30, 2004 ADDTTIONS Contributions $ 186,777 Investment income, net 112,671 Total additions 299,448 DEDUCTIONS Pension benefits 13,046 Total deductions 13,046 Net increase 286,402 Net assets held in trust for pension benefits: Net assets, beginning 1,608,089 Net assets, ending $1,894,491 The Police Officers' Pension Fund (part of the Public Safety Officers' Trust Fund) does not issue separate stand alone financial statements. Therefore, included beiow is the Statement of Fiduciary Net assets and the Statement of Changes in Fiduciary Net Assets as of and for the year ended September 30, 2004. POLICE OFFICERS' PENSION FUND STATEMENT OF FIDUCIARY NET ASSETS SEPTEMBER 30, 2004 ASSETS Investments $ 493,361 Due from other funds 7,851 Tota1 assets 501,212 LIABILITIES AND NET ASSETS Accounts payable 2,004 Net assets held in trust for pension benefits $ 499,208 -49- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued) PLAN DESCRIPTION AND CONTRIB UTION INFORMATION (Continued) a. Public Safety Officers' Trust Fund (Continued) Funding Policy (Continued) POLICE OFFICERS' PENSION FUND STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FISCAL YEAR ENDED SEPTEMBER 30, 2004 ADDITIONS Contributions $114,331 Investment income, net 26,819 Total additions 141,150 DEDUCTIONS Pension benefits - Total deductions - Net increase 141,150 Net assets held in trust for pension benefits: Net assets, beginning 358,058 Net assets, ending $ 499,208 b. General Employees' Pension Trust Fund Plan Description Any general employee who completes ten or more years of credited service and attains age 62, or completes 30 years of credited service regardless of age, is eligible for normai retirement benefits. The monthly amount of normal retirement income for a general employee is equal to the number of years of credited service multiplied by 2% of his average highest compensation. Early retirement may be taken after a general employee has attained the age of 50 and has ten years of credited service. In the event of early retirement, benefits are actuarially reduced to take into account the general employee's younger age and earlier commencement of retirement benefits. Such reduction shall not exceed 5% per year. Disability benefits can be received for total and permanent disabilities as determined by the Board of Trustees. If the pension is granted, the benefit amount shall be as follows: -50- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS . (Continued) NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued) PLANDESCRIPTI0IV AND CONTiRIBIITION INFORMATION (Continued) h. General Employees' Pension Trust Fund (Continued) ' Plan Description (Continued) if the injury or disease is .service connected, the general employee shall be entitled to the greater of (a) or (b): (a) A monthly pension equal to 42% of his average compensation, or (b) An amount equal to the number of years of his credited service multiplied by 2°Io of his average monthly salary based upon his highest five years of service. If the injury or disease is not service connected, the general employee shall be entitled to the greater of (a) or (b): (a) A monthly pension equal to 25% of his average compensation, or (b) An amount equal to the number of years of his credited service multiplied by 2% of his average monthly salary based upon his highest five years of service. If the general employee dies prior to retirement from the Village, his beneficiary shall receive an amount equal to the vested pension benefit. A survivor benefit is payable to the beneficiary starting when the member would have reached retirement age. If the general employee dies or terminates employment with less than ten years of credited service, he is entitled to a refund of the money he contributed. Funding Policy General employees are required to contribute 5% of .their compensation to the plan. The Village is required to contribute the remaining amount to fund the plan using the aggregate actuarial cost method as approved by the plan's Board of Trustees. The aggregate method does not separately identify or amortize the unfunded actnarial liability. -51- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued) PLAN DESCRIPTION AND CONTRIB UTION INFORMATION (Continued) b. General Employees' Pension Trust Fund (Continued) Funding Policy (Continued) The General Employees' Pension Trust Fund does not issue separate stand alone financial statements. Therefore, included below is the Statement of Fiduciary Net assets and the Statement of Changes in Fiduciary Net Assets as of and for the year ended September 30, 2004. GENERAL EMPLOYEES' PENSION TRUST FUND STATEMENT OF FIDUCIARY NET ASSETS SEPTEMBER 30, 2004 ASSETS Investments $ 437,365 Due from other. funds 2,771 Total assets 440,136 LIABILITIES AND NET ASSETS Accounts payable 6,425 Net assets held in trust for pension benefits $ 433,711 GENERAL EMPLOYEES' PENSION TRUST FUND STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FISCAL YEAR ENDED SEPTEMBER 30, 2004 ADDITIONS Contributions $123,715 Investment loss, net (10,254 Total additions ll3,461 DEDUCTIONS Pension benefits 13,694 Total deductions 13,694 Net increase 99,767 Net assets held in trust for pension benefits: Net assets, beginning 333,944 Net assets, ending $ 433,71 I -52- VILLAGE OF TEQUESTA, FLORIDA . NOTES TO BASIC FINANCIAL STATEMENTS � {Continued) NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued) PLAN DESCRIPTIONAND CONTRIBUTION INFORMATION (Continued) b. General Employees' Pension Trust Fund (Continued) Annual Pension Cost The Village's 2004 annual pension aost and actual contributions for each plan are shown below. The required contributions were determined as part of the October i, 2003 actuarial valuation for each plan. Three-Year Trend Information Net Annual Percentage Pension . Pension of APC Obligation Fiscal Year Endin� Cost (APC) Contributed Asset Fire�ghters' Retirement System: September 30, 2002 $ 71,190 144.1°Io $(i43,664) September 30, 2003 i 15,482 98.1% (141,480) September 30, 2004 140,983 98.3% (139,069) Police Officers' Retirement System: September 30, 2002 $ 31,883 78.8°l0 $(73,859) September 30, 2003 38,879 105.6°Io (76,020) September 30, 2004 56,518 156.3% (107,843) General Employees' Retirement System: September 30, 2002 $ 42,127 114.2% $(38,553) September 30, 2003 65,157 107.2% (43,265) September 30, 2004 92,657 80.0% (24,718) Components of Annual Pension Cost and Net Pension Obligation Police General Firefighters' Officers' Employees Annual required contribution (ARC) $ 139,739 $ 56,225 $ 92,218 Interest on net pension obligation (NPO) (11,318) (6,082) (3,461) Adjustment to ARC 12,562 6,375 3,900 Annual pension cost 140,983 56,518 92,657 Actual contributions 138,572 88,341 74,110 Increase (decrease) in net pension obligation 2,411 (31,823) 18,547 Net pension obligation (asset), beginning (141,480 (76,020 (43,265 Net pension obligation (asset), ending $ (139,069 $ (107,843 $ (24,718 -53- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASiC FINANCIAL STATEMENTS _ (Continued) NOTE 13. COMMITMENTS AND CONTINGENCIES Long-Term Agreement to Purchase Wacter On July 15, 1976, the Village entered into an agreement with Tri-SouthBrn Utilities Company, Inc. (the agreement was subsequently assumed by the Town of Jupiter) to purchase water for the Village's water system for a period of 30 years. Rates for water service are based on wholesale rates. The Viilage is billed monthly based upon a contracted minimum usage rate • of 1,500,000 gallons per day. Water purchases were approximately $668,000 for the year ended September 30, 2004. Lease Agreements On December 20, 1994, the Village entered into an Interlocal agreement with Palm Bach County. Per the agreement, Palm Beach County provided for partial funding, land acquisition and design and construction of a branch library within Tequesta. Upon completion of the project, the library was leased to Palm Beach County for 50 years for an ann�al 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 vaiue of $405,000 calculated on a straight-line basis. On August 12, 2004, the Village entered into a one year lease agreement to rent commercial office space for the administrative, finance, community development and water services staff. The base annual rent is approximately $91,000, an increase of 7.6% over the prior year. The lease expires on July 31, 2005. Contracted Services — Refuse and Recycling Collection Effective October 1, 1989, the Village entered into a franchise agreement with Nichols Sanitation, Inc. for curbside solid waste and recycling collection services. On October 14, 1993, the Village amended the franchise agreement. The amendment extended the agreement for an additional five years commencing October 1, 1994. For consideration of the extension, the collection rates were reduced. In addition, the Village assessed a 6% franchise fee for each residential customer, effective October 1, 1994. Nichols Sanitation may also adjust the curbside and recycling rates beginning October l, 1995, and each October 1S` thereafter based upon the change in the Consumer Price Index (CPI). Effective October l, 1999, the existing agreement was extended through September 30, 2007. Refuse and recycling fees totaled approximately $247,000 for the year ended September 30, 2004. Contracted Services — Fire/Emergency Medical Service Effective October 1, 1993, the Village entered into an Interlocai agreement with Jupiter Inlet Colony for the Village to provide fire protection/emergency medical services far a fee. For the year ended September 30, 2004, fire protection fees received from Jupiter Inlet Colony were approximately $172,000. � -54- VILLAGE OF TEQUESTA, FLORIDA ' NOTES TO BASIC FINANCIAL STATEMENTS (Continued) NOTE 13. COMMITMENTS AND CONTINGENCIES {Continued) Construction Commitments Significant construction commitments as of September 30, 2004 are as follows: Estimated Estimated Expended Cost to Completion Descri tion to Date Compiete Date Governmental Funds Capitai Projects Fund: Village Hall Plans (engineering only) $125,827 $188,327 April 2005 Enterprise Funds Water Utility: Raw Water Main Extension 139,498 386,638 March 2005 Tropic Vista Water Main Expansion 88,999 377,502 March 2005 Jupiter Heights Water Main Expansion 6,925 82,533 March 2005 Hydraulic Model Update (engineering only) 5,000 15,000 Apri12005 NOTE 14. RISK MANAGEMENT The Village is exposed to various risks of loss related to torts, theft of, damage to and destructian of assets, errors and omissions, injuries to employees and natural disasters. The Village purchases commercial insurance to cover the various risks. There was no reduction in insurance coverage from coverages in the prior year. Retention of risks is limited to those risks that are uninsurable with deductibles ranging from $250 to $10,000 per occunence. Major uninsurable risks include damages to infrastructure assets. Since the amount of loss cannot be reasonably estimated and the likelihood of occurrence is not determinable, no provision for Iosses is reflected in the financial statements. There were no settled claims which exceeded insurance coverage during the past three fiscal years. The Village is insured under a retrospectively rated policy for workers' compensation coverage. The plan is a trust fund comprised of local governmental entities. The premiums are based on the risk class and remuneration of covered employees adjusted by an experience modification based on the claims history of the Village. At the end of the premium year, the Village can either receive a discount or pay an additional premium based on its claims experience. Should a deficit develop in the trust fund after excess insurance recoveries, the Village shall thereafter be responsible for its individual costs. -55- VILLAGE OF TEQUESTA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS (Continued) NOTE 15. JOINT VENTURE The Village, in conjunction with six other municipalities, organized a consortium to provide mutual fire and emergency aid. The consortium is known as the Nortliern 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 obiigated to contribute any funds to the consortium since its inception in 1999. -56- Page Intentionally Left Blank REQUIRED SUPPLEMENTAL INF4RMATION VILLAGE OF TEQUESTA, FLORIDA REQUIRED SUPPLEMENTARY 1NFORMATION BUDGETARY COMPARISON SCHEDULE GENERAL FUND FISCAL YEAR ENDED SEPTEMBER 30, 2004 Variance with Final Budget - Budgeted Amounts Actual Positive Original Finai Amounts e ative Revenues: Taxes $4,765,921 $4,765,921 $4,870,876 $ 104,955 Intergovernmental 583,127 583,127 596,947 13,820 Charges far services 404,270 427,770 477,513 49,743 Intragovernmental 34i,700 34i,700 341,700 - Grants 65,270 65,270 43,945 (21,325) Licenses and permits 7,400 7,400 4,480 (2,920) Interest 59,480 59,480 75,668 16,188 Fines and forfeitures 50,500 50,500 54,810 4,310 Miscellaneous 28,350 28,850 83,126 54,276 Impact fees 15,100 15,100 11,028 (4,072) Total revenues 6,321,118 6,345,118 6,560,093 2i4,975 Expenditures: Current: Public safety 3,803,080 3,944,552 3,902,259 42,293 General government 1,382,893 1,288,628 1,225,550 63,078 Transportation 503,560 788,082 776,273 11,809 Leisure services 396,945 392,538 384,980 7,558 Capital outlay 73,000 74,349 64,899 9,450 Debt service: Principai retirement Z10,010 219,303 219,280 23 Interest 217,350 219,820 219,801 19 Total expenditures 6,586,838 6,927,272 6,793,042 134,230 Deficiency of revenues over expenditures (265,720) 582,154) (232,949) 349,205 Other �nancing sources (uses): Transfers in 2G5,72Q 265,720 265,710 10 Gain on sale of capital assets - - 521,948 (521,948) Appropriated fund balance - 316,434 - 316,434 Total other �nancing sources (uses) 265,720 582,154 787,658 (205,504) Net change in fund balance $ -$ -$ 554,709 $ 554,709 See note to budgetary comparison schedule. -57- VILLAGE OF TEQUESTA, FLORIDA NOTE TO THE BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2004 NOTE 1. BUDGETS AND BUDGETARY ACCOUNTING Formal budgetary integration is employed as a management control device during the year for the General Fund, Special Revenue Fund and Capital Projects Funds. All budgets are legally enacted throngh passage of an ordinance. Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States. For budgeting purposes, current year encumbrances are not treated as expenditures. The Village follows these procedures in establishing the budgetary data reflected in the financial statements: 1) Prior ta September ls`, the Village Manager submits to the Village Council a proposed operating budget for the fiscal year commencing the following October ls The operating budget includes proposed expenditures and the means of financing them. 2) Public hearings are conducted to obtain taxpayer comments. 3) Prior to October ls`, the budget is legally enacted through passage of an ordinance. Changes or amendments to the total budgeted fund expenditures must be approved by the Village Council. Management may make unlimited interfunctional transfers within a fund without seeking Council approval. However, in order to make the most effective use of the budgetary process, it is the policy of the Village to make as few budget adjustments as possible. Budget amendments were not material in relation to original appropriations. During the year, supplemental appropriations of approximately $316,000 were made. Appropriations are legally controlled at the fund level and expenditures may not legally exceed budgeted appropriations at that ievel. Appropriations lapse at year end. -58- VILLAGE OF TEQUESTA, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS � FISCAL YEAR ENDED SEPTEMBER 30, 2004 Annual Fiscal Required Village State Percentage Year Contribution Contribution Contribution Contributed Firefi�hters' Pension Fund 1999 $ 82,881 $ 107,914 $ 35,118 172.6% 2000 82,881 49,398 31,247 97.3% 2001 59,836 24,694 4,783 49.3% 2002 59,836 66,261 81,917 247.6% 2003 i 14,382 76,957 59,123 119.0% 2004 139,739 82,036 56,536 99.2% Police Of�cers' Pension Fund 1999 $ 6,384 $ 20,266 $ 29,795 784.2% 2000 6,384 576 42,i78 669.7% 2001 18,199 - - 0.0°/a 2002 18,199 - 81,854 449.8% 2003 38,594 15,906 53,639 180.2% 2004 56,225 20,391 67,950 157.1% General Employees' Pension Fund 1999 $ 17,456 $ 17,456 N/A 100.0°/a 2000 17,456 26,053 N/A 149.2% . 2001 12,887 30,687 N/A 238.1% 2002 12,887 48,i24 N/A 373.4% 2003 64,723 69,869 N/A 108.0°l0 2004 92,218 74,110 N/A 80.4% (Continued) -59- VII.LAGE OF TEQUESTA, FLORIDA REQUIItED SUPPLEMENTAi,1NFORMATION SCHEDULE OF EMPLOYER CONTRIBUTION {Continued) FISCAL YEAR ENDBD SEPTEMBER 30, 2004 Police General Firefighters Officers Employees Pension Pension Pension Fund Fund Fund Valuation date 10/1/2003 10/1/2003 10/1/2003 Actuarial cost method Aggregate Aggregate Aggregate Amortized method (1) (1) (1) Remaining amortization period (1) (1) (1) Asset valuation method Fair value Fair value Fair value Administrative costs Included in calculation Included in calculation Included in calculation - of normal cost of normal cost of normal cost Actuarial assumptions: Investment rate of return* 8% 8% 8% Projected salary increase* 6% 6% 6% *Includes inflation at 4% 4% 4% Cost of living adjustments 0% 0% 0% (1) When the aggregate actuarial cost method is used, unfunded actuarial liabilities are not identi�ed or separately amortized; therefore, a schedule of funding progress is not required and has not been provided. -60- COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES NONMAJOR GOVERNMENTAL FUNDS NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. Special Revenue Fund — This fund was established to coliect and accumulate certain revenues from Franchise fees and Occupational Licenses to pay principal and interest on the 1994 Series Improvement Revenue Refunding Bonds. Special Law Enforcement Trust Fund — This fund is used to account for forfeitures received by the Police Department. Capital Projects Funds Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary and trust funds. Capital Improvement Fund — This fund is used to account for the maintenance and upkeep of the Village's general infrastructure (such as roads, bridges, sidewalks and storm water drainage systems) and streetscape beautification projects.. The Capital Projects Fand - This fund is used to account for the acquisition or construction of various major capital projects. VILLAGE OF TEQUESTA, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2004 Total Special Special Law Capital Capital Nonmajor Revenue Enforcement Improvement Projects Governmental Fund � Pund Fund Fund Funds ASSETS Assets: Cash and cash equivalents $133,271 $ -$ 289 $ 34 $ 133,594 Investments 120,845 15,960 374,1�1 597,728 1,108,704 Accounts receivable 38,437 - - - 38,437 Total assets $ 292,553 $ 15,960 $ 374,460 $ 597 $ 1,280,735 LIABILITIES ANU FUND BALANCES Liabilities: Accounts payable $ - $ 268 $ - $ 13,906 $ 14,174 Deferred revenue 19,752 - - - 19,752 Totalliabilities 19,752 268 - 13,906 33,926 Fund balances: Reserved for debt service 272,801 - - - 272,801 Unreserved - 15,692 374,460 583,856 974,008 Total liabilities and fund balances $ 292,553 $ 15,960 $ 374,460 $ 597,762 $ 1,280,735 � � -61- VILLAGE OF TEQUESTA, FLORLDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2004 Total Special Special Law Capital Capital Nonmajor Revenue Enforcement Improvement Projects Governmental Fund Fund Fund Fund Funds Operating revenues: Franchise fees $ 372,212 $ - $ - $ - $ 372,212 Licensesandpermits 89,121 - - - 89,121 Interest 3,640 175 - - 3,815 Fines and forfeitures - 2,603 - - 2,603 Total revenues 464,973 2,778 - - 467,751 Operating expenditures: Public safety - 268 10,917 5,354 16,539 Capital outlay - - 149,954 100,774 250,728 Debt service: Principal 100,000 - - - 100,000 Interest 42,678 - - - 42,678 Total expenditures 142,678 268 160,871 106,128 409,945 Excess (deficiency) of revenues over expenditures 322,295 2,510 (160,871 106,128 57,806 Other �nancing sources (uses): Transfers in 60,300 - - - 60,300 Transfers out 334,470 - - - (334,470) Total other financing sources (uses) 274,170 - - - (274,170) Net change in fund balances 48,125 2,510 (160,871) (106,128) (216,364) Fundbalances,beginning 224,676 13,282 535,331 689,984 1,463,173 Fund balances, ending $ 272,801 $ 15,692 $ 374,460 $ 583,856 $ 1,246,809 -62- VILLAGE OF TEQUESTA, FLORIDA BUDGETARY COMPARISON SCHEDULE SPECIAL REVENiJE FUND FISCAL YEAR ENDED SEPTEMBER 30, 2004 Variance with Final Budget - Budgeted Amounts Actual Positive Ori ig'nal Final Amounts e ative Revenues: Franchise fees $ 328,000 $ 328,000 $ 372,212 $ 44,2i2 Licenses and permits 85,000 85,000 89,121 4,121 Miscellaneous 3,920 3,920 3,640 (280 Total revenues 416,920 416,920 464,973 48,053 Operating expenditures: Debt service: Principal 100,000 100,000 100,000 - Interest 42,750 42,750 42,678 72 Total expenditures 142,750 142,750 142,678 72 Excess of revenues over expenditures 274,170 274,170 322,295 48,125 Other �nancing sources: Transfers in 60,300 60,300 60,300 - Proceeds from notes payable (334,470 (334,470) 334,470) - Total other financing sources (uses) (274,170) {274,170) (274,170) - Net change in fund balance $ -$ -$ 48, i 25 $ 48,125 -63- VILLAGE OF TEQUESTA, FLORIDA BUDGETARY COMI'ARISON SCHEDULE CAPITAL PROJECTS FUND FiSCAL YEAR ENDED SEPTEMBER 30, 2004 Variance with Final Budget - Bud�eted Amounts Actual Positive Ori�inal Final Amounts e ative Revenues $ - $ - $ - $ - Expenditures: Public safety - 5,354 5,354 - Capital outlay 180,000 305,008 100,774 204,234 Total expenditures 180,000 310,362 106,128 204,234 Deficiency of revenues over expenditures (180,000) (310,362) {106,128) 204,234 Other financing sources and uses: Appropriated fund balance 180,000 310,362 - 310,362 Total other �nancing sources (uses) 180,000 310,362 - 310,362 Net change in fund balance $ - $ - $ (106,128) $ (106,128) -64- NONMAJOR ENTERPRISE FUNDS NONMAJOR ENTERPRISE FUNDS Stormwater Fund — This fund is used to account for the drainage and stormwater collection for the Village. Refuse and Recycling Fund — This fund is used to account for the fees charged for solid waste and recyclable material collection. VILLAGE OF TEQUESTA, FLORIDA COMBINING STATEMENT OF NBT ASSETS NONMA30R ENTERPRISE FUNDS SEPTEMBER 30, 2004 i Total Nonmajor _ Stormwater Refuse & Enterprise Utilitv Rec c�n� Funds ASSETS Current assets: Cash and cash equivalents $ 65 $ -$ 65 Investments 3i5,20$ 162,528 477,736 Accounts receivable 3,631 2,760 6,391 Total current assets 318,904 165,288 484,192 Non-current assets: Capital assets not being depreciated 7,878 - 7,878 Capital assets being depreciated 1,353,550 - 1,353.550 Totai noncurrent assets 1,361,428 - 1,361,428 Total assets 1,680,332 165,288 1,845,620 LIABILITIES AND NET ASSETS Current liabilities: Accounts payable 7,215 44,603 51,818 Accrued liabilities 1,119 - 1,119 Total current liabilities 8,334 44,603 52,937 Net assets: Invested in capital assets 1,361,428 - 1,361,428 Unrestricted 310,570 120,685 431,255 Total net assets $1,671,998 $120,685 $1,792,683 -65- VILLAGE OF TEQUESTA, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS NONMAJOR ENTERPRISE FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2004 � Total Nonmajor Stormwater Refuse & Enterprise - Utili Recvclin� Funds Operating revenues: Charges for services $ 303,450 $ 248,252 $ 551,702 , Total operating revenues 303,450 248,252 55 i,702 Operating expenses: Personal services 28,272 - 28,272 Purchased services - 247,933 247,933 Depreciation 61,607 - 61,607 Management services - 5,000 5,000 Contractual services 1,454 - 1,454 Professional services 64,204 - 64,204 Total operating expenses 155,537 252,933 408,470 Operating income (loss) 147,913 (4,681) 143,232 Non-operating revenues: Interest income 4,577 2,488 7,065 Total non-operating revenues 4,577 2,488 7,065 Income (loss) before transfers 152,490 (2,193) 150,297 Transfers out (60,300 - (60,300 Change in net assets 92,190 (2,193) 89,997 Net assets, beginning 1,579,808 122,878 1,702,686 Net assets, ending $1,671,998 $120,685 $1,792,683 � -66- VILLAGE OF TEQUESTA, FLORIDA COMBINING STATEMENT OF CASH FLOWS � NONMAJOR ENTERPRISE FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2004 Total Nonmajor Stormwater Refuse & Enterprise Utili Recyclin� Funds Cash flows from operating activities: Cash received from customers, governments and other funds $ 302,530 $ 247,644 $ 550,174 Cash paid to suppliers (63,975) (227,041) (291,016) Cash paid to employees (28,157 - (28,157 Net cash provided by operating activities 210,398 20,603 231,001 Cash flows from non-capital financing activities: Transfers to other funds (60,300) - (60,300) Net cash used in non-capital financing activities (60,300) - (60,300) Cash flows from capital and reiated �nancing activities: Acquisition and construction of fixed assets (88,724) - (88,724) Net cash used in capital and related �nancing activities (88,724) - 88,724) Cash flows from investing activities: Purchases of investments (204,492) (138,424) (342,916) Sales of investments 138,i41 114,583 252,724 Interest received on investments 4,577 2,488 7,Of S Net cash used in investing activities (61,774) (21,353) (83,127) Net decrease in cash and cash equivalents (400) (750) (1,150) Cash and cash equivalents, beginning 465 750 1,215 Cash and cash equivalents, ending $ 65 $ -$ 65 Adjustments to reconcile operating income to net cash provided by operating activities: Operating income (loss) $ 147,913 $ (4,681) $143,232 Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation 61,607 - 61,607 Changes in operating assets and liabilities: (Increasej decrease in: Accounts receivable (921) (607) (1,528) Other assets $ - g Increase in accounts payable and accrued liabilities 1,791 25,891 27,682 Net cash provided by operating activities $ 210,398 $ 20,603 $ 231,001 -67- . Page Intentionally Left Blank FIDUCIARY FUNDS FIDUCIARY FUNDS Fire�ighters' Pension Trust Fund — This fund accounts for the accumulation of resources and for contributions and benefits of the firefighter employees: Police Officers' Pension Trast Fund — This fund accounts for the accumulation of resources and for contributions and benefits of the police employees. General Employees' Trust Fund — This fund accounts for the accumulation of resources and for contributions and benefits for the general employees of the Village. VILLAGE OF TEQUESTA, FLORIDA COMBINING STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS SEPTEMBER 30, 2004 Police General Fire�ghters' Offcers' Employees' Pension Pension Pension Total ASSETS Cash and cash equivalents $ 228,492 $ 59,424 $ 55,828 $ 343,744 Investments: Corporate stocks 1,037,139 269,411 257,734 1,564,284 Corporate bonds 211,319 54,893 24,106 290,318 Government backed assets 422,050 109,633 99,697 631,380 Due frorn other funds 3,507 7,851 2,771 14,129 Total assets 1,902,507 501,212 440,136 2,843,855 LIABILITIES E1ND NET ASSETS Accounts payable 8,016 2,004 6,425 16,445 Net assets held in trust for pension benefits $1,894,491 $ 499,208 $ 433,711 $ 2,827,410 -68- VILLAGE OF TEQUESTA, FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FIDUCIARY FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2004 Police General Firefighters' Officers' Employees' Pension Pension Pension Total ADDITiONS Contributions: Employer $ 82,036 $ 20,391 $ 74,110 $ 176,537 Employee 48,205 25,990 49,605 123,800 State 56,536 67,950 - 124,486 Total contributions 186,777 114,331 123,715 424,823 Investment income Net appreciation in fair value of investments 108,776 8,563 6,002 i23,341 Investment earnings 37,040 25,986 3,842 66,868 145,816 34,549 9,844 190,209 Less investment expenses 33,145 7,730 20,098 60,973 Net investment income (loss) 112,671 26,819 (10,254) 129,236 Total additions 299,448 14i,150 113,461 554,059 DEDUCTiONS Pension benefits 13,046 - 13,694 26,740 Total deductions 13,046 - 13,694 26,740 Net increase 28b,402 141,150 99,767 527,319 Net assets held in trust for pension benefits: Net assets, beginning 1,608,089 358,058 333,944 2,300,091 Net assets, ending $1,894,491 $499,208 $ 433,711 $2,827,410 -69- � _-rot,... r , �, (/.' '"� � :• l � =_ 1 �� —' � n � �, �'.` , i , - �`. � � � � . 2 , -- � STATISTICAL SECTION VILLAGE OF TEQUESTA, FLORIDA GOVERNMENT-WIDE EXPENSES LAST TEN FISCAL YEARS (1) Governmental Entities Business-type Activities Interest on Other Fiscal Genexal Public Leis�e Long-Term Cormnunity Enterprise Year Government Transportation Safe Services Debt Water Development Activities Tota1 2003 $1,299,812 $ 4�4,134 $ 3,649,803 $ 385,192 $ 277,855 $ 3,881,752 $ 593,105 $ 507,902 $11,069,555 2004 1,105,741 804,523 4,138,374 458,659 262,479 3,975,766 513,101 408,470 11,667,113 (1) Information for fiscal years September 30, 2002 andprior is unavailable. -70- VILLAGE OF TEQUESTA, FLORIDA GOVERNMENT-WIDE REVENUES LAST TEN FISCAL YEARS (1) Program Revenues General Revenue Contributions not Chaxges Attributed to Loss on Sale Fiscal for Operating Inter- Specific of Capital Yeax Services Crrants Taxes �overnmental Pro� Interest Miscellaneous Assets Total. 2003 $ 6,144,651 $ 56,517 $ 4,836,923 $ 520,921 $ 150 $ 160,238 $ 822,819 $ - $12,542,219 2004 5,851,907 43,945 5,243,088 558,069 - 155,329 165,702 (1,008,734) 11,009,306 (1) Information for �sca1 years Se�tember 30, 2002 and pxior is unavailable. -71- VILLAGE OF TEQUESTA, FLORIDA GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (UNAUDITED) (1) LAST TEN FISCAL YEARS Physical Fiscal General Public Bnvironment Human Leisure Capital Debt Yeax Government Safe Transportation �2,� Services Sexvices Outlav Service Totals 1995 $ 770,264 $ 2,249,850 $ 458,208 $ 4,179 $ 472 $ 154,508 $1,590,410 $ 201,415 $ 5,429,306 1996 815,361 2,578,374 512,984 - 1,033 161,766 1,333,911 206,861 5,610,290 1997 747,024 2,472,639 409,404 - 1,033 208,619 810,975 207,771 4,857,465 1998 964,623 2,572,384 413,501 - 1,255 243,768 367,896 252,229 4,815,656 1999 839,914 2,671,668 296,321 - 2,984 239,017 1,811,211 409,917 6,2'71,032 2000 895,633 2,649,089 381,372 - 35 245,130 440,175 493,188 5,104,622 2001 1,216,011 2,996,439 430,813 - - 238,843 1,385,665 650,454 6,918,225 2002 3,229,968 1,139,653 403,363 - - 325,326 4,051,287 2,131,261 11,280,858 2003 1,289,050 3,443,961 440,253 - - 347,975 1,439,607 748,076 7,708,932 2004 1,225,550 3,918,798 776,273 - - 384,980 368,303 581,759 7,255,663 (1) Includes General, Special Revenue and Capital Projects Funds. (2) Refuse and recycling reported in Enterprise funds beginning in 1991. Source: Village of Tequesta financial records. -72- VILLAGE OF TEQUESTA, FLORIDA GENERAL REVENUES BY SOURCE (1) LAST TEN FISCAL YEARS Licenses Charges Fines Fiscal and Inter- for and Miscellaneous Year Taxes Permits 3 governmental Services Forfeitures � Totals 1995 $ 2,985,573 $ 292,272 $ 898,701 $ 241,848 $ 43,555 $ 308,037 $ 4,769,986 1996 3,184,007 246,450 950,477 213,283 78,578 279,658 4,952,453 1997 3,279,491 91,570 471,023 291,711 63,343 298,757 4,495,895 1998 3,542,883 89,203 485,648 273,779 74,641 292,526 4,758,680 1999 3,784,810 104,428 532,558 300,073 71,780 449,542 5,243,191 2000 3,962,782 96,975 644,679 264,018 46,465 516,999 5,531,918 2001 4,102,022 83,702 573,933 302,072 48,501 496,943 5,607,173 2002 4,502,446 108,429 638,106 382,650 73,758 645,105 6,350,494 2003 4,836,923 103,564 575,986 362,663 58,46'7 589,810 6,527,413 2004 5,243,088 93,601 640,892 477,513 57,413 515,337 7,027,844 (1) Includes General, Special Revenue and Capital Projects Funds. (2) Includes intragovernment services, impact fees and interest income. (3) Beginning 1997, building perniits reported in the Community Development Enterprise Fund. Occupational licenses are included in this report. Souxce: Village of Tequesta financial records. -73- VILLAGE OF TEQUESTA, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS (1) LAST TEN FISCAL YEARS � Tota1 Current Delinquent Tax Tax Percent Outstanding Taxes Fiscal Levy Collections of Levy Delinquent to Tax Year �1,� �. Collected Taxes L� 1995 $ 2,048,066 $ 2,028,987 99.1% $ 19,079 0.9% 1996 2,i66,385 2,158,420 99.6% 7,965 0.4% 1997 2,270,529 2,263,14b 99.7% 7,383 0.3% 1998 2,457,085 2,450,091 99.7% 6,994 0.3% 1999 2,653,474 2,642,313 99.5% 11,161 0.4% 2000 2,858,426 2,846,894 99.6% 11,532 0.4% 2001 2,9$5,994 2,970,942 99.5% 15,052 0.5% 2002 3,271,160 3,147,730 96.2% 5,816 0.2% 2003 3,520,466 3,388,176 96.2% 13,983 0.4% 2004 3,912,003 3,776,782 96.5% 3,750 O.i% (1) The tax levied in the fiscal year is based oii the taxable value of the prior year. (2) Includes discounts taken by properly taxpayers. Source: Palm Beach Cotuity Tax Collector's office. -74- VILLAGE OF TEQUESTA, FLORIDA TAXABLE VALUE AND NST VALUE OF TAX.ABLE PROPERTY LAST TEN FISCAL YEARS I i I 'i Ratio of � Taxable Centrally Va1ue Real Propertv Personal Propertv Assessed Propertv Total to Fiscal Taxable Just Taxable ' Just Taxable Just Taxable Just Just Year Value Value Value Value Value Va1ue Value Value Value 1995 $ 328,167,741 $ 409,679,164 $16,070,906 $18,042,404 $ - $ - $ 344,238,647 $ 427,721,568 80% 1996 337,376,976 424,956,672 16,264,236 I 18,268,307 - - 353,641,212 443,224,979 80% 1997 346,611,843 436,504,082 16,332,495 � 18,374,057 - - 362,944,338 454,878,139 80% 1998 366,649,040 454,995,565 17,405,293 19,996,199 - - 384,054,333 474,991,764 81% 1999 391,373,771 487,378,779 16,920,043 20,210,854 - - 408,293,814 507,589,633 80% 2000 422,707,903 522,797,351 18,949,389 21,865,379 278,827 278,827 441,936,119 544,941,557 81% 2001 468,569,608 601,222,227 18,641,610 21,621,054 279,734 279,734 487,490,952 623,123,015 78% 2002 503,562,346 672,688,887 19,211,494 22,202,297 287,762 287,762 523,061,602 695,178,946 75% 2003 583,470,308 7$9,428,369 19,488,528 22,409,087 326,474 326,474 603,285,310 812,163,930 74% 2004 695,900,596 950,969,798 19,752,631 22,669,061 340,485 340,485 715,993,712 973,979,344 74% Source: Palm Beach County Tax Collectox's Office: Form DR-403AM "The 2004 Revised Recapitulation of the Ad ValoremAssessment Rolls of Tequesta, Palm Beach County, Florida" February 15, 2005. -75- VILLAGE OF TEQUESTA, FLORIDA PROPERTY TAX RATES - ALL DTRECT AND OVERLAPPING GOVERNMENTS (Per $1,000 of Assessed Valuation) LAST TEN FISCAL YEARS South Florida Florida County County Water Jupiter Navigational Children's Health Fiscal Genexal County Everglades School County Management Inlet Inland Sexvice Care Year Fund Coun Debt Construction Board Libxarv District District District Council District Total 1995 6.1280 4.5193 - - 10.1850 0.4437 0.5970 0.1257 0.0490 0.3522 1.4500 23.8499 1996 6.3425 4.5191 - - 9.7970 0.4838 0.54'70 0.1240 0.0400 0.3730 1.4250 23.6514 1997 6.4693 4.8660 - - 9.5570 0.4997 0.6970 0.1203 0.0500 0.4530 1.1600 23.8723 1998 6.6310 4.8666 0.2582 0.1000 9.5570 0.4977 0.6970 0.1203 0.0500 0.4530 1.1600 24.3908 1999 6.7305 4.8580 0.3456 0.1000 9.6820 0.5246 0.6970 0.1180 0.0470 0.4403 1.0500 24.5930 2000 6.7305 4.9362 0.3362 0.1000 $.9180 0.5403 0.6970 0.1091 0.0410 0.5000 1.0250 23.9333 2001 6.7305 4.9351 0.3851 0.1000 8.9480 0.5403 0.6970 0.1012 0.0385 0.5703 1.1500 24.1960 2002 6.7305 4.5000 0.3084 0.1000 8.7790 0.5403 0.5970 0.0916 0.0385 0.6228 1.1300 23.4381 2003 6.4980 4.5000 0.2910 0.1000 8.5710 0.5833 0.5970 0.0916 0.0385 0.6902 1.1300 23.0906 2004 6.4980 4.5000 0.2677 0.1000 8.4320 0.5807 0.5970 0.0916 0.0385 0.6902 1.1100 22.9057 Source: Palm Beach County Tax Collector's Office -76- VILLAGE OF TEQUESTA, FLORIDA COMPUTATION OF LEGAL DEBT MARGIN SEPTEMBER 30, 2004 Total assessedvalue $ 714,639,727 � Legal debt margin: Debt limitation -10% of #otal assessed value $ 71,463,973 Total bonded debt outstanding $ 595,000 Less amount available in debt service func�'� 272,801 Total debt applicable to limitation 322,199 Lega1 debt margin $ 71,141,774 � Palm Beach County Property Appraiser's Office, Foi7n DR 420 "Certificate of Taxable Value" �'? IBR - Special Revenue -77- VILLAGE OF TEQUESTA, FLORIDA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO. TOTAL GENERAL GOVERNIVIENTAL EXPBNDITURES LAST TBN FISCAL YEARS Ratio of Debt Service to Total Total Total General General Fiscai Debt Governmental Governmental Year Principal Interest Service Expenditures Expenditures 1995 $ 90,354 $ 111,061 $ 201,415 $ 5,429,306 3.7% i996 100,556 106,305 206,861 5,610,290 3.7% 1997 104,Q59 103,712 207,77i 4,857,465 4.3% 1998 138,071 114,158 252,229 4,815,656 5.2% 1999 246,325 163,592 409,917 6,271,032 6.S% 2000 250,768 98,460 349,228 5,104,622 6.8% 2001 453,354 197,545 650,899 6,918,225 9.4% 2002 90,000 54,120 144,120 7,273,446 2.0% 2003 95,000 48,585 143,585 7,708,932 1.9% 2004 100,000 42,743 142,743 7,255,663 2.0% -78- VILLAGE OF TEQUESTA, FLORIDA COMPUTATION OF DIl2ECT AND OVERLAPPING DBBT SEPTEMBER 30, 2004 Percentage Amounf Net Applicable Applicable Debt to to Taxin� Authoritv Outstandin� Tequesta Tequesta Direct: Village of Tequesta $ 322,199 i 00.00% $ 322,199 Overlapping: Palm Beach County . 275,905,000 0.64% 1,765,792 Palm Beach Counry School Board 154,400 0.64% 988 To#al overlapping 276,059,400 1,766,780 Total $ 276,381,599 $ 2,088,979 Source: Governmental entities noted above. -79- VILLAGE OF TEQUESTA, FLORIDA RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA LAST TEN FISCAL YEARS � Rario of Net (B) Bonded Net (A) Debt Debt Bonded Gross Service Net to Debt Fiscal Taxable Bonded Monies Bonded Assessed Per Year Population Va1ue Debt Available Debt Value Capita 1995 4,623 $ 344,238,467 $1,310,000 $ 85,751 $1,224,249 0.36% $ 264.82 1996 4,637 353,641,212 1,250,000 35,977 1,214,023 0.34% 261.81 1997 4,686 362,944,33$ 1,185,000 39,562 1,145,438 0.32% 244.44 1998 5,036 384,054,333 1,115,000 48,871 1,066,129 0.28% 211.70 1999 5,122 �08,293,784 1,040,000 75,874 964,126 0.24% 188.23 2000 5,273 441,936,119 960,000 118,738 841,262 0.19% 159.54 2001 5,307 487,490,952 880,000 141,912 738,088 0.15% 139.08 2002 5,327 525,401,605 790,000 141,913 648,087 0.12% 121.66 2003 5,333 603,285,310 695,000 224,676 470,324 0.08% 88.19 2004 5,648 715,993,712 595,000 272,801 322,199 0.05% 57.05 Sources: Palm Beach County Planning Board University of Florida estimates Federal census Village of Tequesta Building Department records -80- VILLAGE OF TEQUESTA, FLORIDA REVENUE BOND COVERAGE WATER BONDS LAST TEN FISCAL YEARS Net Revenue Available for Debt Service Debt Fiscal Crross Operati.ng Debt Requirements Amortization Service Year Revenue Expenses (31 Service Princi a1 Interest Account 1 Total Covera�e 1995 $2,948,260 $ 2,414,540 $ 533,720 $290,000 $43,280 $ (9'7,158) $236,122 2.26 1996 3,283,922 2,451,485 832,437 270,000 17,355 (7,525) 279,830 3.92 1997 (2) - - - - - - - - 1998 3,527,292 2,141,071 1,386,221 - 198,789 - 198,789 6.9'7 1999 3,910,167 2,179,525 1,730,642 - 389,740 - 389,740 4.44 2000 4,159,538 2,228,211 1,931,327 135,000 387,175 - 522,175 3.70 , 2001 4,0'77,925 2,351,739 1,726,186 140,000 384,610 - 524,610 3.29 2002 3,597,159 2,665,701 931,458 145,000 376,038 - 521,038 1.79 2003 4,0$2,459 2,718,444 1,364,015 160,000 363,325 - 523,325 2.61 2004 3,931,562 2,810,719 1,120,843 165,000 356,255 - 521,255 2.15 (1) This relates to a 1985 Water Refunding Revenue Bond issue that required the purchase of $980,000 par arnount of U.S. Treasury Bonds. The purchase price of the bonds, less the interest earned, was added to the debt service for that year. The final principal payment on the 1985 bonds was made on September 30, 1996. (2) The Village did not have any outstanding Revenues Bonds this fiscal year. (3) Operating expenses, excluding depreciation. -81- VILLAGE OF TEQUESTA, FLORIDA PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS New Commercial New Residential Just Property Construction (1) Constxuction (11 Va1ue 2 Number Number Fiscal of Va1ue of Va1ue Rea1 Personal Year Units New Rebuild Units New Rebuild D osits Pro e Pro e 1995 - $ - $ - 10 $1,658,043 $ - $ 326,394,550 $ 409,679,164 $18,042,404 1996 3 2,248,278 - 6 1,127,624 - 319,213,870 424,956,672 18,268,307 1997 2 320,400 - 169 14,896,648 - 314,744,875 436,504,0$2 18,374,057 1998 2 2,852,090 - 12 3,080,959 - - 454,995,565 19,996,199 1999 5 11,374,822 - 11 2,722,156 - - 487,378,779 20,210,854 2000 2 9,485,904 - 7 2,421,146 - - 522,793,351 21,865,379 2001 9 3,176,655 - 1 500,000 - - 601,222,227 21,621,054 2002 1. 50,000 - 157 20,931,741 2,937,961 - 672,688,887 22,202,297 2003 11 - 185,049 29 7,040,365 124,500 - 789,428,369 22,409,087 2004 19 2,337,709 1,130,599 33 5,400,911 350,561 - 950,969,798 22,669,061 Souxce: (1) Village of Tequesta Building Department. (2) Palm Beach County Property Appraiser's Office. -82- VILLAGE OF TEQUESTA, FLORIDA PRINCIPAL TAXPAYERS _ SEPTEMBER 30, 2004 Percentage Type 2003 of of Assessed Assessed Business Valuation ValuaLion Tamwest Realty, Inc. (County Line Plaza) Sllopping Center $10,604,318 i.48% - Inland Southeast Tequesta, LLC (Tequesta Shoppes) Shopping Center 8,361,691 1.17% Terrace Communities Tequesta. Assisted Living Facility 7,730,984 1.08% Cohen Square, LLC Shopping Center 5,450,000 0.76% AHC Purchaser, Inc. Assisted Living Facility 4,648,041 0.65% Tequesta. Counhy Club Golf Club 3,698,390 0.52% Hersey, Harry Private Residence 3, 675,160 0.51 % JMZ Tequesta Properties, Inc. Professional Office 3,037,628 0.42% HCP Property of Florida, Inc. Shopping Center 3,009,580 0.42°/a Mantwill, David A. Private Residence 2,870,464 0.40% $ 53,086,256 7.42 Source: Palm Beach County Property Appraiser's Of�ce (1) Village of Tequesta, Community Development -83- VILLAGE OF TEQUESTA, FLORIDA MISCELLANEOUS STATISTICS SEPTEMBER 30, 2U04 Date of Incorporation 1957 Forms of Government Council-Manager, 3 Councilmembers elected even years, 2 Councilmembers elected odd years Municipal Blections Non-Partisan Area Approx.imately 2 square miles Miles of Streets Approximately 47.61ane miles Fire Protection Number of stations - 1 Number of certi�ed firefighters - 16 F/T, 6 P/T Fire Rating - 4 Police Protection Ntuilber of stations - 1 Number of certified officers - 16 F/T Number of dispatchers - 5 F/T, 1 P/T Municipal Water De�artment Ntxmber of customers - 4,612 Average daily consumption - 2.782 million gallons Miles of water mains - approximately 50 miles Sanitary Sewa�e Service provided by Loxahatchee River Environmental Conhol District (ENCON) Storm Sewers Adequate coverage Gaxba�e Collection Seivice franchised to Nichol's Sanitation Frequency of service is bi-weekly Electric Service Florida Power & Light Company Telephone Service Be1lSouth Buildinp� Permits Issues 1,049 Recreation and Culture Niunber of parks - 3, approximately 48 acres Nmnber of libraries - 1, branch of Palm Beach County System Nwnber of volumes - 20,000 - 22,000 Municipal Emplo�s Full time - 70 -84- VILLAGE OF TEQUESTA, FLORIDA DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS Unemployment Fiscal Population Rate Year � � 1995 4,623 7.0% 1996 4,637 7.5% 1997 4,686 3.6% 1998 5,036 4.7% i 999 5,122 5.7% 2000 5,273 5.2% 2001 5,307 5.5% 2002 5,327 5.1 % 2003 5,333 6.2% 2004 � 5,648 5.7% Sources: (1) Palm Beach County Planning Board, University of Florida Estimates and Federal Census. (2) Agency for Workforce Innovahon (AWIj (September to September - local area by county - not seasonally adjusted). -85- VTLLAGE OF TEQUESTA, FLORIDA SCHEDULE OF INSURANCE SEPTEMBER 30, 2004 Policv Number Covera�e PGIT Package Policy Building, Contents, Boiler and Machinery �KFL 1050250504 $11,822,329 Inland Marine PKFL 1O5Q250504 $1,204,577 General Liability PKFL 1050250504 $2M($4M Group Life Insurance 860050270 1.5 times annua.l salary plus $5,000 to a maximunn of $150,000 plus $5,000 � Group Hospitalization Cigna 3150680 Various Business Automobile Liability PKFL 1050250504 $2,000,000 Fidelity Bond - Employee Honesty CPP001750010 $100,000 Public Officials Bond Zurich 08538214 $100,000 Workers' Compensation PGIT139103 $1,000,000 EMT Professional Liability PKFL 1050250504 $2,000,000 Public Official's Errors and Omissions PKFL 1050250504 $1,000,000 Police Professional Liability PKFL 1050250504 $2,000,000 Boiler and Machinery Liability PKFL 1050250504 $11,822,329 Group Accident Policy (Police and Fire Department Personnel) ETB 102089 Various Pollution Liability FPL7509020#2 $1,000,000 Fiduciary Liability (Pension Board of Trustees) Travelers 10350525 $2,000,000 -86- Page Intentionally Left Blank _ ..--. i . ... �� / �� l'1� 1 �� 7� i , .. � , . t � ! 1 � �� i�..J ! i,� � ,�� l� / � �, ' ! � � _ ;� -. � . _i� a �� `��_ � COMPLIANCE SECTION � .f"e �'12 ��olt� A.ccountants Advisors Report of Independent Certified Public Accounta�ts on Internal Control over Tinancial I2eportinb and on Compliance and Other 1�Iatters I3ased on an Audit of Financial Statements I'erformed in Accordance with Governnaen.t �=ticdi.ti.�z.; Sta�rdards Honorable M�lyor, Villa;�e Council and Villa�e Managei Village of Tequesta, Florida We have audited the financial statements of the govern�nental activities, the business-type activities, each major fund, and the a��rebate uther remaininQ fund ini'ormation of the Villa�=e o1' Tequest��i, Tlorida (th� Villa«e) as o(' Seplember 30, 2004 and Por the year then ended, �ind have isstied our report cJated Februai 3, 2005. We conducted our audit in accordance with Qenerally accepted auditin� standards and the standards appficable to i'inancial audits contained in Goi�erri��nerit Ac�.�litiri,�> Stcu�dcn issu�d by the Comptroller General of the United St�ites. Internal Control Over Financial Reportin�� [n plannin� and performin� our audit, we considered Che VilfaQe's internal conlrol over fioancial reporting in order to deterir�ine our auditinb procedures for the purpose of expressin� our opinions on the financial sCatements and no� to provide assurance on the internal contr over financial reporCin�. Our consideration of the internal control over financial reporting would not necessarily disclose all mallers in Che in�ernal control over financial reportin� that mi�ht be material weaknesses. A material weakness is a coi�dition in which the desi�n or operation of one or more of the internal control co�r�ponents does noC reduce to a relaCively low level Che risk tllaC misstaCements caused by error or fraud in amounts Chat wouid be material in relation to the tina��cial st�itements bein� audited may occur and not be detectecl within a timely period by employees in tlle normal course ofi performin�� their assigned functions. We noted no maCters involving the internal control over financial reportin� and its operaCion that we consider to be material we�iknesses. Compliance and Other Matters As part oF obtaininb reasonable assurance about whether the Village's financial statements are free of' maCerial misstateme;nt, we perfor�ned tests o1' iCs compliance with cerCain provisions of laws, rebulations and contracts, noncompliance with which could have a direct and material ePfect on the determination of financial staterr�ent amounts. However, providin� an opinion on compliance with those provisions was not an objec[ive of our audit and, accordinaly, we do not express such an opinion. The results oi� our tests disclosed no instances of noncompliance th��it are required to be reported under Govcr�im.e��t Acr�clitirtg S�cmdctrds. -S7- iiacteian i;mhe�3 & 4�oii� i�r On� Souti�easl Third Avarue L Tenth Floor � fJiiami. Florida 33131 0�hone 305.377.4228 ��ax 305.�77.8331 9 wv�v�.ra�h9in.c��n Ar rr:dep�nrle.�?t lulern�er o! t3ak�a,� (iii;� i�;terna!;onal h9 f ll 61 f u f 0 N F f. p U D E R C(! l. E u �. f IP A� i�l it F A C H u S T U{I !i T Honorable Mayor, Villa�e Cow�cil an� Villa�e Manager VillaQe ot'Tequesta, Florida Page Two This report is intended for the information and use of the Nlayor, Village Council, manaQement and the revulatory authorities and is not intendcd to be ancl should not be used by anyone other th�u� the speci(i�d parties. � ��,�- �-- �E�-� �C.� � West Palm Beach, Florida February 3, 2005 -�5- �t _� . c�� ( >��' �Acccurita��rs 1?.d��isvrs �,� cohen �Holtz Accountants Advisors Mana ement Letter in Accordance with the Rules of the Auditor General of the State of Florida Honorable Mayor, Village Cotuzcil and Village IVlanager Village of Tequesta, Florida We have audited the financial statements of the governmental activities, the business-type activities, each major fiind, and the aggregate remaining fiu�d infornlation of the Village of Tequesta, Plorida (the Village) as of and for the year then ended, and have issued a report thereon dated February 3, 2005. We conducted our audit in accordance with �enerally accepted auditing standards and the standards applicable to financial audits contained in Goverrzment Auditing Stanclards, issued by the Comptroller General of the United States. We have issued our Report of Independent Certified Public Accountants on Conlpliance and oi� Internal Cont��ol over F'inancial Reparting. Disclosure in these reports dated February 3, 2005 should Ue considered in conjunction with this management letter. In comlection with our audit of the basic financial statements of the Village for the year ei�ded September 30, 2004, we report the following in accordance with Chapter 10.550 Rules of the Auditor General Local Governnaer��tal Ei�.tity Audits which requires that this report specifically address but not be limited to the matters outlined in Rule 10.554(1)(h): L Recommendations made ii� the preceding financial aLidit to improve the Village's present finalzcial management, accounting procedures and intei controls have beeiz implemented. 2. The Village was ii1 compliance with Section 218.415, I'lorida Statutes regarding the inveshilent of public funds. 3. There are no reconunendations to improve the Village's present financial management, accounting procedures and internal controls. 4. During the course of our audit, other than matters that are clearly inconsequential, considering both quantitative and qualitative factors, nothing came to our attention that caused us to believe that the Village: a. Was in violation of any 1aws, rules or i and contractual provisions. b. Made illegal or improper expenditures. c. Had improper or inadequate accounting procedures. d. Failed to record financial transactions, which could have a material effect on the Village's financial statements. e. I-Iad other inaccuracies, shoi defalcations, and instances of fi discovered by, or that caine to the attention of the auditor. 5. The Village was incorporated in 1957 Uy Laws of Florida 57-1915. There are no component units. -89- Rachlin Cohen & Holtz i.�v One Southeast Third Avenue ■ Tenth Floor ■ Miami, Florida 33131 ■ Phone 305.377.4228 ■ Fax 305.377.8331 ■ www.raChlin.COm An Independent Member of Baker Tilly International M 1 A M I ■ F 0 R T L A U D E R D A L E ■ W E S T P A L M B E A C H ■ S T U A R T ��z ��1�� ; „ ,,,, :.>i.l_l..;lilt.� �(_ �1 ..�i),I.� Mana�ement Letter in Accordance with the Rules of the Auclitor General of the State of Florida I Mayor, Vill��e Council and Villa�Te Man�.iger Villa�e of TequesC�l, Tlorida Wc have audiCed the ti��ancial statemenCS of tl�e govr:rnmental activities, the business-type activities, each major ftmd, and the a��re�,�a�e ren��ainina fund information of the VillaQe of Tequesta, Florida (the Village) as of and 1'or the year then ended, and l��ave issued a report thereon dated I�ebruary 3, 2005. We conducted our audit in accordance with ar:n�ra(ly accepted auditin�,� standards a�d the standards applicable to f'inancial audits conlained in Goverr�.n�.er��t ,1c�.cliting Sturi.clar�ls, issueci by lhe Coi��pU�oller G�n�ral of the Uniled SCales. We have issucd our Report of Inciepend�.nt Certified Public Accouneanls on Compliance 1nd on Internal Control over Financial Reporting. Disclosure in these reports dated Febru�uy 3, 2005 should be considered in conjunction w�ith this m<lna�ement letter. In connection with our audit of the basic financial staternenls oP the Village for the year en�ed September 30, 2004, we report the followin� in accordance with Chapler 10.5_50 Rules of the Auclitor General Loca.l Goverru�ientccl E��tit>> Audits which requires that lhis reporC speciPically address buC not be limited to tf�e m�ltters outlined in Rule 10.554(1)(h): l. Recommendations made in the precedin� financial audit to improve the Village's present f�inancial il�ana�ement, accountin� proced�n �lnd ineernal con�rols have been implemented exee�t as reportecl in the summ��ry sche�ule of prior audiC Findin�s. 2. The Villa�e was in compliance with Section 21S.415, Florida Stalutes rec�u�cling �he inveslment of public funds. 3. There are no recommendations to impi the Villa�e's presenl tinancial manabement, accoun�in� procedures �tncf inCernal controls. 4. Durin� the course of our audit, other than matters that are clearly inconseq��enti��il, considerin�� boeh quai�titative �ind qualitative Factors, nothin�� came to our attention d��lt caused us to believe that the Villa�e: a. Was in viola�ion of any laws, rules or re�ulations and contract��al provisions. b. Nlade ille�al or improper expenditures. c. Had improper or inadequ�ite accounting procedures. d. Failed to record financial transactions, which could have a material effect on the Vill�i�e's financial statei��ents. e. Had other� inaccuracies, shorta�es, defalcations, and instances of fraud discovered by, or that came to t'he attention of the auditor. 5. The Villa��e was incorporated in 1957 by Laws of Florida �7-1 �l>. There are no component �u�ils. -�9- i��vnlin C�f�e:i & ila6iz t�n One Souiheast ltiird Aveiiue o�enth Floor �:� Mia��i. �lorida 33131 �� Phone 305.377.A?_23 o Fax 305.377.8331 +� °:��.e.E'u€:Elf�a�.ca�r� Ar Ir��ic�;�n�'Fi i iiQen�;be� o� �:r'<e 7�l!v i�,.;;:lti:�rar R" I ll 67 I u 6 0!1 T L A U ll E R U I'a L g � 61' L' S T P ll L Gi R E �(: H u S 7 U H N�� Honorable Mayor, Villa�e Council and Villa�e Man�lC7er VillaQe of Tequesta, Florida Page Two 6. a. The Villa;_>e, during fiscal year ?004, was not in a state of fm�lncial emer;�ency as defined by Florida Statute, Scction 218.�03( 1). b. The annual finani;ial report [�or the year ended September 30, `?004 h�is been I��led with the Department of Financial Services pursuant to Section 218.3?( 1)('a), Florida Statutes and is in a�reement with the audited financial statements of the same period. c. Dtu the course of our audil, we applied f�inanci��il condition assessmenC ��rocedures pursuant to Rule 10.566(8). It is mana�ement''s respon�ibility to monitor the Villa�e's f�inancial condition, and our tinancial condition assessment, which w�ls perfonned as of the Villa�e's fiscal year end, was based on repi made by mana�ement and the review of' Pinancial information provided by lhe Village. There were no findings th�C iden�ified deterioraCinQ financial conditions. This report is intended for the inFormation of tl�e Mayor, Village Council, mana�emenl, and thc: AudiCOr General of the State of Floricla and is not inCended to be and should not be used by anyone other than those specitied parties. �� . � Wes[ Palil� Beach, Florida February 3, 2005 ' -90- �.�_< ?E%t:'�'"l c�'�,�. .)��a l��c�:;�ui*;ints �dvi��rs