HomeMy WebLinkAboutDocumentation_Regular_Tab 02_06/14/2007Village of Tequesta
Comprehensive Annual
Financial Report
Fiscal Yeas Ending September 30, 2006
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INTRODUCTORY SECTION
VILLAGE OF TEQUESTA, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 2006
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
VILLAGE OF TEQUESTA, FLORIDA
TABLE OF CONTENTS
(Continued)
PAGE
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet - Nonmajor Governmental Funds 60
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Governmental Funds 61
Budgetary Comparison Schedule -Special Revenue Fund 62
Budgetary Comparison Schedule -Capital Projects Fund 63
Budgetary Comparison Schedule -Capital Improvement Fund 64
Combining Statement of Net Assets - Nonmajor Enterprise Funds 65
Combining Statement of Revenues, Expenses and Changes in Net Assets -
Nonmajor Proprietary Funds 66
Combining Statement of Cash Flows - Nonmajor Enterprise Funds 67
Combining Statement of Fiduciary Net Assets 68
Combining Statement of Changes in Fiduciary Assets 69
III. STATISTICAL SECTION
Net Assets by Component -Last Four Fiscal Years 70
Changes in Net Assets -Last Four Fiscal Years 71_72
Program Revenues by Function/Program -Last Four Fiscal Years 73
Fund Balances, Governmental Funds -Last Four Fiscal Years 74
Changes in Fund Balances, Governmental Funds -Last Four Fiscal Years 75
Tax Revenues by Source, Governmental Funds -Last Four Fiscal Years 76
Revenues from Sales and Use Taxes by Category -Last Four Fiscal Years 77
Assessed and Estimated Actual Value of Taxable Property -Last Ten Fiscal Years 78
Property Tax Rates -All Direct and Overlapping Governments -Last Ten Fiscal Years 79
Principal Property Taxpayers -Current Year and Nine Years Ago 80
Property Tax Levies and Collections (Unaudited) -Last Ten Fiscal Years g l
Second Tier Capacity -Other Taxes by Category -Last Ten Fiscal Years 82
Ratios of Outstanding Debt by Type -Last Ten Fiscal Years S3
Ratio of Net Outstanding Debt to Assessed Value and Net Bonded Debt Per Capita (Unaudited) -
Last Ten Fiscal Years 84
Computation of Legal Debt Margin gs
Direct and Overlapping Governmental Activities Debt 86
Pledged-Revenue Coverage -Last Ten Fiscal Years 87
Demographic and Economic Statistics -Last Ten Fiscal Years gg
Full-time-Equivalent Village Government Employees by Function/Program -
Last Five Fiscal Years 89
Operating Indicators by Function/Program -Current Fiscal Year 90
Capital Asset Statistics by Function/Program -Current Fiscal Year 91
VILLAGE OF TEQUESTA, FLORIDA
TABLE OF CONTENTS
(Continued)
PAGE
N. COMPLIANCE SECTION
Report of Independent Certified Public Accountants on Compliance and on Internal
Control over Financial Reporting and on Compliance and Other Matters based on an Audit
of Financial Statements Performed in Accordance with Government Auditing Standards 92-93
Management Letter in Accordance with the Rules of the Auditor General of the
State of Florida 94-95
Report of Independent Certified Public Accountants on Compliance and Internal Control over
Compliance Applicable to Each Major State Financial Assistance Project 96-97
Schedule of Expenditures of State Financial Assistance 98
Note to the Schedule of Expenditures of State Financial Assistance 99
Summary Schedule of Prior Audit Findings 100
Schedule of Findings and Questioned Costs 101
!llaae of Teaaes~-a,
345 Tequesta Drive I P: (561) 575-6200
Tequesta, FL 33469 F: (561) 575-6203
February 16, 2007
To the Honorable Mayor, Members of
The Village Council, and Citizens
of the Village of Tequesta, Florida
Chapter 11.45 of the Florida Statues, Chapter 10.550 of the rules of the Auditor General of the
State of Florida requires every general purpose local government publish within six months of the
close of each fiscal year a complete set of audited financial statements. The Comprehensive
Annual Financial Report of the Village of Tequesta, Florida, is published to fulfill that
requirement for the fiscal year ended September 30, 2006.
The financial statements included in this report conform with accounting principles generally
accepted in the United States (GAAP) established by the Governmental Accounting Standards
Board. This report consists of management's representations concerning the finances of the
Village of Tequesta. Consequently, management assumes full responsibility for the completeness
and reliability of the information presented. We believe the data presented in this report to be
accurate in all material respects, and include all statements and disclosures necessary for the
reader to obtain a thorough understanding of the Village's financial activities. To provide a
reasonable basis for making these representations, management has established a comprehensive
internal control framework that is designed for this purpose. Because the cost of intemal controls
should not outweigh their benefits, the Village's comprehensive framework of internal controls
has been designed to provide reasonable rather than absolute assurance that the financial
statement will be free from material misstatement. As management, we assert that, to the best of
our knowledge and belief, this financial report is complete and reliable in all material respects.
The Village's financial statements have been audited by Rachlin Cohen & Holtz LLP, a licensed
certified public accounting firm. The independent auditor concluded, based upon the audit, that
there was reasonable basis for rendering an unqualified opinion that the Village's financial
statements for the fiscal year ended September 30, 2006 are fairly presented in accordance with
GAAP. The independent auditor's report is located at the front of the financial section of this
report.
Management's discussion and analysis (MD&A) immediately follows the independent auditor's
report and provides a narrative introduction, overview, and analysis of the basic financial
statements. MD&A complement this letter of transmittal and should be read in conjunction with
it.
PROFILE OF THE GOVERNMENT
The Village of Tequesta was incorporated June 4, 1957 and has aCouncil-Manager form of
government.
All powers of the Village are vested in an elected governing body of the Village consisting of a
five member Village Council responsible for enacting ordinances, resolutions and regulations
governing the Village, adopting budgets, determining policies, as well as appointing the members
of various advisory boards and the Village Manager. The Village Manager executes the laws and
administers the government as well as attends to the day-to-day affairs of the Village.
The Village of Tequesta provides a full range of services, including police and fire protection; the
construction and maintenance of streets and other infrastructure; recreational and cultural
activities; water and stormwater utilities and contracts for sanitation services.
The annual budget serves as the foundation for the Village of Tequesta's financial planning and
control. The Village departments meet with and submit their plans and needs for the coming year
to the finance department, which compiles a proposed budget. The Village Manager reviews and
then submits the Manager's recommended budget to the Village Council. The Village Council
reviews the budget, holds workshops for discussion on the budget and subsequently holds two
public hearings to obtain citizen input and make changes prior to adoption of the budget. Finally,
prior to October ls`, the Village Council adopts the approved budget along with an ordinance
establishing the property tax rate (millage) required to fund the budget. Department heads
recommend transfers of budgeted amounts within their department, which require approval of the
Village Manager. All transfers greater then $5,000, capital items or transfers between funds are
reported to the governing council. Supplemental appropriations require the special approval of
the governing council. Budget-to-actual comparisons are provided in this report for each
individual governmental fund for which an appropriated annual budget has been adopted.
it
FACTORS AFFECTING FINANCIAL CONDITION
The information presented in the financial statements is perhaps best understood when it
is considered from the broader perspective of the specific environment within which the
Village of Tequesta operates
Local Economy
The Village is located at the extreme northeastern quadrant of Palm Beach County. Tequesta is a
relatively affluent residential community with adequate commercial facilities necessary to
provide goods and services to its residents. Northern Palm Beach County ranks as one of the top
growth areas in the country. Although Tequesta's growth potential is restricted by the natural
boundaries of the Atlantic Ocean to the east, the Loxahatchee River to the west, the Town of
Jupiter to the south and Martin County to the north, Tequesta's growth potential for the
foreseeable future continues to be favorable
Property value assessments for fiscal year 2005/2006 increased approximately 15.4%. New
construction and general appreciation in property values continue to be important factors
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 afive-year capital
improvement plan to continue to maintain and enhance existing roadways, parks and recreational
facilities to encourage the improvement of these properties.
Unreserved, undesignated fund balance in the general fund falls within the policy guidelines
targeted by the Council for budgetary and planning purposes (i.e., 20% of total general fund
expenditures).
MAJOR INITIATIVES
• Continue to explore annexation of contiguous properties in unincorporated Palm Beach
County.
• Continue to evaluate capital and operational needs within the Village to ensure ahigh-
level service delivery in an efficient and economical manner.
• Continue to explore alternative revenue sources, at both the state and federal level, with
the assistance of a professional lobbyist.
• Continue to evaluate and implement contemporary financial policies and procedures to
ensure the efficient and economical operation of the Village of Tequesta.
iii
• Construct a new reverse osmosis well and raw water pipe line, reducing demand on
external suppliers and increasing natural water supply
• Construct new playground, pathways and restrooms at Constitution Park.
• Design and construct a new linear park along Dixie Highway.
• Provide repairs to Tequesta Bridge
• Coordinate improvements to railroad crossing at Tequesta Drive.
• Construct new stormwater system for South Cypress Drive and install new landscaped
median.
Cash Management
The Village of Tequesta maintains two pooled cash accounts, the general investment account and
the water enterprise investment account. The finance department monitors cash requirements and
the finance director approves temporary idle cash for investment into these accounts. The
investment policy of the Village is to maximize its investments in high quality, risk-free securities
authorized by State statutes, while maintaining a competitive yield on its portfolio.
Tequesta's investments for the current year consisted of deposits with the State Board of
Administration (SBA) -Local Government Surplus Funds Trust Fund Investment Pool,
obligations of the U.S. Government, and amounts held by an outside custodian on behalf of the
Pension Trust Funds. Investments with the SBA consist of obligations of the U.S. Treasury and
its agencies, money market securities of highest quality such as commercial paper, banker's
acceptance, corporate notes and repurchase agreements. These funds have adopted operating
procedures consistent with the requirements fora 2a-7 fund. Because of short maturities and high
quality, securities in this fund are considered practically risk free.
Risk Management
During 2006, Tequesta continued to use a third-party insurance coverage for its Risk
Management Program.
Pension Benefits
The Village maintains asingle-employer, defined benefit pension retirement system. The
retirement system provides benefits to all full time firefighters, as well as any full time police
officers or general employees hired January 1, 1996 or thereafter. In 1999, the Plans were
amended, establishing a separate plan for public safety officers (firefighters and police officers)
and a separate plan for general employees. The retirement system was established by the Village
and is administered by two separate Boards of Trustees (public safety offers and general
employees). The retirement system receives contributions that may not be used to pay the
benefits of all employee classes. Due to this restriction, for financial statement purposes, three
separate plans are shown as pension trust funds. The Village Employees' Retirement System
administers the following plans: The Firefighters' Pension Trust Fund (FPTF), The Police
iv
Officers' Pension Trust (PPTF) and the General Employees' Pension Trust Fund (GPTF). The
Firefighters' Pension Trust Fund and the Police Officers' Pension Trust Fund have issued stand-
alone financial statements and are included in the financial statements of the Village as pension
trust funds.
AWARDS AND ACKNOWLEDGEMENTS
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to Tequesta for its comprehensive annual financial report for
the fiscal year ended September 30, 2005. This was the twenty-third consecutive year that
Tequesta has received this prestigious award. In order to be awarded a Certificate of
Achievement, Tequesta had to publish an easily readable and efficiently organized
comprehensive annual financial report. This Report satisfied both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year. We believe that our current
comprehensive annual financial report will continue to meet the Certificate of Achievement
Program's requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
The preparation of this report would not have been possible without the efficient and dedicated
services of the entire staff of the finance department. We would like to express our appreciation
to all members of the department who assisted and contributed to the preparation of this report.
In closing, we must also acknowledge the Mayor and Council for their unfailing support for
maintaining the highest standards of professionalism in the management of the Village of
Tequesta's finances.
Respectfully submitted,
~ -
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Michael R. Couzzo, Jr.
Village Manager
~,
Ann Forsythe, CP
Finance Director
v
VILLAGE OF TEQUESTA, FLORIDA
CERTIFICATE OF ACHIEVEMENT
SEPTEMBER 30, 2006
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Village of Tequesta
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended.
Septemer 30, 2005
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
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VILLAGE OF TEQUESTA, FLORIDA
LIST OF PRINCIPAL OFFICIALS
SEPTEMBER 30, 2006
VILLAGE COUNCIL 2005-2006
James Humpage
Tom Paterno
Geraldine A. Genco
Patricia Watkins
Seat 5 -Open
Mayor
Vice-Mayor
Councilmember
Councilmember
Councilmember
VILLAGE OFFICIALS AND DIRECTORS
Michael R, Couzzo, Jr.
Scott Hawkins
(Jones, Foster, Johnston & Stubbs, P.A.)
Gwen Carlisle
James Weinand
William McCollom
JoAnn Forsythe, CPA
Catherine Harding
Robert Garlo
Michael R. Couzzo, Jr.
Gregg Corbitt
Village Manager
Village Attorney
Village Clerk
Fire Chief
Police Chief
Director of Finance
Director of Community Development
Director of Public Works
Director of Utilities
Director of Parks and Recreation
Rachlin Cohen & Holtz LLP
Accountants • Advisors
-viii-
FINANCIAL SECTION
REPORT OF INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANTS
COI'Je12
Holtz
Accountants Advisors
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
We have audited the accompanying financial statements of the governments] activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the Village of Tequesta,
Florida (the Village) as of and for the year ended September 30, ?006, which collectively comprise the
Village's basic financial statements, as listed in the table of contents. These financial statements are the
responsibility of the Village's management. Our responsibility is to express opinions on these basic
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material misstatement. An
audit includes consideration of internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the Village's internal control over financial reporting. Accordingly, we express no
such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the governmental activities, the business-type activities, each major fund, and the
aggregate remaining fund information of the Village of Tequesta, Florida as of September ~0, ?006 and
the respective changes in financial position and cash flows, where applicable, thereof for the year then
ended in conformity with accounting principles generally accepted in the United States.
In accordance with Government Auditing Standards, we have also issued a report dated February 16,
?007 on our consideration of the Village's internal control over financial reporting and our tests of its
compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the internal
control over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Covernnzent Auditing Standards and should be read in conjunction with the report in
considering the results of our audit.
Rachlin Cohen & Holtz LLP
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 I A M I ^ F O 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
Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
Page Two
Management's Discussion and Analysis and the Required Supplementary Inforniation on pages 3 to 15
and pages 57 to 59, respectively, are not a required part of the basic financial statements but are
supplementary information required by accounting principles generally accepted in the United States. We
have applied certain limited procedures, which consisted principally of inquiries of management
regarding the methods of measurement and presentation of the required supplementary information.
However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Village's basic financial statements. The introductory section, combining and individual
fiend statements and schedules and statistical tables are presented for purposes of additional analysis and
are not a required part of the basic financial statements. Similarly, the accompanying schedule of
expenditures of state financial assistance is presented for purposes of additional analysis as required by
the Florida Single Audit Act and Chapter 10.50, Rules of the Auditor General. The combining and
individual fund statements and schedules and the schedule of expenditures of state financial assistance,
have been subjected to the auditing procedures applied in the audit of the basic financial statements and in
our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a
whole. The information identified in the table of contents as the Introductory and Statistical Sections
have not been subjected to the auditing procedures applied in the audit of the basic financial statements,
and, accordingly, we express no opinion thereon.
West Palm Beach, Florida
February 16, 2007
-~-
Cohen
Holtz
Accountants Advisors
MANAGEMENT'S DISCUSSION AND ANALYSIS
(MD&A)
Village of Tequesta, Florida
Management's Discussion and Analysis
As management of the Village of Tequesta, we offer readers of the Village's financial statement this
narrative overview and analysis of the financial activities of the Village for the fiscal year ended
September 30, 2006. We encourage readers to consider the information presented here in conjunction
with the additional information that we have furnished in the letter of transmittal found on pages i to v
of this report.
Financial Highlights
The assets of the Village of Tequesta exceeded its liabilities at the close of the most recent
fiscal year by $27.2 million (net assets). Of this amount, $10.4 million (unrestricted net
assets) may be used to meet the ongoing obligations to the citizens and creditors.
The Village's total net assets increased by $2.76 million (11.3%) during the current fiscal
year. A key factor was the increase in ad valorem taxes due to a rise in the taxable value of
real property. Another factor was an increase in the interest rates over the year resulting in a
82% increase in this revenue from the prior year.
As of the close of the current fiscal year, the Village's governmental funds reported combined
ending fund balances of $5.4 million, a decrease of $1.4 million from the prior year.
At the end of the current fiscal year, unreserved, undesignated fund balance for the General
fund was $1.9 million a reduction of $523,793 from the prior year.
The Village's total long-term-debt decreased by $210,087 (2.8%) during the current fiscal
year. Please see, Notes to Basic Financial Statements, Note 9 on page 40.
The Village implemented GASB Statement 44, Economic Condition Reporting: The
Statistical Section. The 21 statistical tables present detailed information as a context for
understanding what the financial statements, note disclosures, and required supplementary
information says about the Village's overall financial health. The tables begin on page 70.
The Village was required to have an audit on compliance and internal control over each major
State financial assistance project (grant) for fiscal year ending 9/30/2006. The auditors report
begins on page 96.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Village of Tequesta's basic
financial statements. The Village's basic financial statements consist of three components: 1)
government-wide financial statements, 2) fund financial statements, and 3) notes to the financial
3
statements. In addition to these basic financial statements, this report contains other supplementary
information.
Government-wide financial statements. The government-wide financial statements are designed to
provide readers with a broad overview of the Village's finances, in a manner similar to a private-
sectorbusiness.
The statement of net assets presents information on all of the Village's assets and liabilities, with the
difference between the two reported as net assets. Over time, increases or decreases in net assets may
serve as a useful indicator of whether the financial position of the Village is improving or
deteriorating.
The statement of activities presents information showing how the Village's net assets changed during
the most recent fiscal year. All changes in net assets are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will result in cash flows in future fiscal
periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the Village that are
principally supported by taxes and intergovernmental revenues (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business-type activities). The governmental activities of the Village included general
government, public safety, transportation and leisure services. The business-type activities of the
Village included water, stormwater and refuse and recycling.
The government-wide financial statements can be found on pages 16-17 of this report.
Fund financial statements. Afund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The Village, like other
state and local governments, uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements. All of the funds of the Village can be divided into three
categories: governmental funds, proprietary funds and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike
the government-wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, as well as on balances of spendable resources available
at the end of the fiscal year. Such information may be useful in evaluating the Village's near teen
financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the Village's near-term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of
revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
The Village maintains five individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures,
and changes in fund balances for the General, Special Revenue, Special Law Enforcement, Capital
Projects and Capital Improvement funds. The General and Capital Projects fund are considered to be
4
a major funds. Data from the other three governmental funds is combined into a single, aggregated
presentation. Individual fund data for each of these nonmajor governmental funds is provided in the
form of combining statements elsewhere in this report.
The Village adopts an annual appropriated budget for its General Fund. A budgetary comparison
statement has been provided for the General Fund to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 18-20 of this report.
Proprietary funds. The Village maintains one type of proprietary fund. Enterprise funds are used to
report the same functions presented as business-type activities in the government-wide financial
statements. The Village uses enterprise funds to account for its water, stormwater and refuse and
recycling.
Proprietary funds provide the same type of information as the government-wide financial statements,
only in more detail. The proprietary fund financial statements provide separate information for the
Water Utility. Data from Stormwater Utility and Refuse and Recycling funds are combined into a
single, aggregated presentation
The basic proprietary fund financial statements can be found on pages 21-23 of this report.
Fiduciary ficnds. Fiduciary funds are used to account for resources held for the benefit of parties
outside the Village. Fiduciary funds are not reflected in the government-wide financial statement
because the resources of those funds are not available to support the Village's own programs. The
accounting used for fiduciary funds is much like that used for proprietary funds.
The basic fiduciary fund financial statements can be found on pages 24-25 of this report.
Notes to the basic financial statements. The notes provide additional information that is essential to
a full understanding of the data provided in the government-wide and fund financial statements. The
notes to the basic financial statements can be found on pages 26-56 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 Village of Tequesta's
progress in funding its obligation to provide pension benefits to its employees. Required
supplementary information can be found on pages 57-59 of this report.
The combining statements referred to earlier in connection with nonmajor governmental funds, as
well as, nonmajor enterprise funds and fiduciary funds are presented immediately following the
required supplementary information. Combining and individual fund statements and schedules can be
found on pages 60-69 of this report.
The Village of Tequesta implemented GASB Statement 44, Economic Condition Reporting.• The
Statistical Section. The 21 statistical tables are presented under the following 5 categories: Financial
Trends, Revenue Capacity, Debt Capacity, Demographic and Economic Information and Operating
Information and can be found on pages 70-91 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 $27.2 million at
the close of the most recent fiscal year.
The largest portion of the Village's net assets (59.7%) represents investment in capital assets (e.g.,
land, buildings, machinery and equipment), less any related outstanding debt used to acquire those
assets. The Village uses these capital assets to provide services to citizens; consequently, they are not
available for future spending. Although the Village's investment in its capital assets is reported net of
related debt, it should be noted that the resources needed to repay this debt must be provided from
other sources since the capital assets themselves cannot be used to liquidate these liabilities.
Village of Tequesta's Net Assets
Governmental Activities Business-type Activities Total
Assets
Current and other assets
Capital assets, net
Total assets
2006 2005
$7,296,921 $8,106,445
2006 2005 2006 2005
$6,063,576 $5,886,762 $13,360,497 $13,993,207
Liabilities
Current liabilities and payables
Long-term liabilities
Total liabilities
Net assets
Invested in capital assets,
net of related debt
Restricted for debt service
Restricted for Renew & Rep.
Unrestricted
Total net assets
$10,142,809 $7,416,462 $18,955,598 $18,270,078 $29,098,407 $25,686,540
$17,439,730 $15,522,907 $25,019,174 $24,156,840 $42,458,904 $39,679,747
$1,598,906 $998,469 $659,242 $836,567 $2,258,148 $1,835,036
$5,611,91 L $5,809,481 $7.373,470 $7,583,557 $12,985,381 $L3,393,038
$7,210,817 $6,807,950 $8,032,712 $8,420,(24 $L5,243,529 $15,228,074
$4,515,096 $1,788,749
$143,370
$ 11,722,188 $10,815,151 $16,237,284 $12,603,900
$133,762 $317,102 $277,132 $317,102
$262,607 $262,607
$5,570,447 $6,926,208 $4,867,905 $4,604,463 $10,438,352 $ L 1,530,671
$10,228,913 $8,714,957 $16,986,462 $15,736,716 $27,215,375 $24,451,673
The restricted portion of the Village's net assets, $539,439 (1.9%), represents resources that are subject to
external restrictions on how they maybe used. The remaining unrestricted net asset balance of $10.4
million (38.4 %) maybe 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 total net assets increased $2,763,702 (11.3%) during the year. This increase
demonstrates the degree in which increases in ongoing revenues have outpaced increases in ongoing
expenses.
6
Governmental activities. Governmental activities (excluding transfers) increased the Village of
Tequesta's net assets by $1,453,656 accounting for 52.6% of the total increase in net assets of the Village.
Village of Teq uesta's Changes in Net Assets
Governmental Activities Business-ty pe Activities Total
2006 2005 2006 2005 2006 2005
evenues:
rogram Rcvcnucs:
Charges forScrviccs $1,449,040 $1,305,484 $4,676,082 $4,613,451 $6,125,122 $5,872,616
Grants & Contributions 900,183 515,438 526,471 119,944 1,426,654 515,438
cncral Rcvcnucs:
PropcrtyTaxcs 5,166,754 4,494,713 5,166,754 4,494,713
Other Taxes 1,087,759 1,084,827 1,087,759 1,084,827
Franchise fees based on gross receipts 419,929 367,778 419,929 367,778
[ntcrgovcrnmcntal 679,001 622,457 679,001 622,457
Unrestricted investment earnings 392,961 214,588 280,665 164,163 673,626 378,751
Fines and forfeitures Sce below 352,254 See below 352,254
ain on sale of capital assets 1,981 4,820 6,801
OthcrMiscellancous 173,362 289,647 479,145 151,487 652,507 441,134
Total Rcvcnuc 10,270,970 9,247,186 5,967,]83 5,049,045 16,238,153 14,296,231
Expenses:
General government ],402,535 1,36],013 1,402,535 1,361,013
Public safety 5,577,243 4,691,063 5,577,243 4,691,063
Transportation 837,441 656,158 837,441 656,158
Leisure Services 756,224 605,745 756,224 605,745
Interest of long-term debt 243,871 248,728 386,012 368,576 629,883 248,728
Water utility scrviccs 3,801,245 3,657,451 3,801,245 3,657,451
Stormwatcr scrviccs 198,993 142,788 198,993 142,788
Refuse & recycling scrviccs 270,887 260,715 270,887 260,715
otal Expenses 8,817,314 7,562,707 4,657,137 4,429,530 13,474,451 11,992,237
'hangc in net assets,
efore transfers 1,453,656 1,684,479 1,310,046 619,515 2,763,702 2,303,994
ransfcrs and contributions: 60,300 710, I S I (60,300) (7 L0,1 S I) - -
hange in net assets 1,5]3,956 2,394,630 (90,636) 2,763,702 2,303,994
ctasscts-beginning 10/Ol 8,714,957 6,320,327 15,736,716 15,827,353 24,451,673 22,147,680
ctasscts-cndin=9/30 $10,228,913 $8,714,957 $16,986,462 $15,736,716 27,215,375 $24,451,673
7
Government-type activities:
A key element in the increase in net assets is an increase is property taxes, which increased
$672,04] (IS%), mainly due to rising property values/assessments.
Grant revenue from governmental activities increased by $384,745.
Investment earnings increased $169,092, due to rising interest rates during the year.
Fees from licenses and permits increased $78,012 mostly due to increased activity in building
permits.
Fines and forfeitures are reported as part of `charges for services' in f/y/e 9/30/2006 and were
reported as `General revenue' in the prior year.
The Village's programs/functions include General Government, Public Safety, Transportation and
Leisure Services. The net cost shows the extent to which the Village's general revenues support each
of the Village's programs. The cost of all governmental activities this year was $8,817,314. As
shown on the Statement of Activities, the functions directly benefiting from the programs generated
revenue of $2,349,223 towards this cost and the remaining cost of $6,468,091 (73.4%) was financed
through general revenues. This represents a 12.7% increase from prior year.
8
Revenues by Source -Governmental Activities
Unrestricted
investrr~~" ~~-~'~~~
Intergovernmental
6.6%
Other Miscellaneous Charges for
iervices
Franchise fees
4.1
14.1%
Grants &
Contributions
8.8%
In the chart above, revenue from ad valorem taxes has been combined with `other taxes' to show the
percentage of revenue generated from all tax sources in fiscal year ending September 30, 2006
Business-type activities. The net assets of business-type activities increased $1,249,746.
Operating income from business-type activities was $931,428; an increase of $258,987 from the prior
year. This was mainly due to an increase of $406,527 in intergovernmental revenue related to grant
revenue, offset by an increase in operating expenses (R & M increased $135,076, utilities increased
$58,578 and depreciation expense increased $51,647)). It should also be noted that Capital Connect
charges have been reclassified from `Charges for Services in f/y/e 9/30/2005 to miscellaneous
revenue, anon-operating revenue in f/y/e 9/30/2006. Additionally, $68,839 received from Tropic
Vista residents, to reimburse costs associated with the Village supplying water to this area in Martin
County, is classified as `Charges for Services' in the current year, a change from miscellaneous
revenue in prior year.
9
Expenditures by Function -Business Type Activities
Revenue &
Recycling
Stormwater Utility 5%
6%
Revenues by Source -Business Type Activities
Grants &
Contributions -
9
l~
Investment
Earnings Miscellaneous
5% 8%
Financial Analysis of the Village's Funds
As noted earlier, the Village of Tequesta uses fund accounting to ensure and demonstrate compliance
with finance-related legal requirements.
Governmental funds. The focus of the Village's governmental unds is to provide information on
near-term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the Village's financing requirements. In particular, unreserved fund balance may serve as a
useful measure of the Village's net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, The Village of Tequesta's governmental funds reported
combined ending fund balances $5.4 million, a decrease of $1.4 million from the prior year.
Approximately 73% ($3,950,680) of the total amount of fund balances constitutes unreserved fund
balance, which is available for spending at the government's discretion. However, the Village has
designated $1,000,000 of the unreserved fund balance in the General Fund for Disaster Relief;
$691,866 for subsequent year's expenditures (roll-forwards) and has identified fund balances in the
following funds for specific uses: Capital Improvements ($103,020) and Special Revenue Funds
($255,615). Designations reflect the Village's self-imposed limitations on the use of otherwise
available current financial resources. The remainder of unreserved undesignated fund balance (S l .9
million) represents approximately 35.2% of total fund balances.
The General Fund is the chief operating fund of the Village. At the end of the current fiscal year,
unreserved fund balance of the general fund was $3,068,585. 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 36.7% of total general fund expenditures,
while total fund balance represents 40.7% of that same amount.
Compared to the prior fiscal year, total General Fund revenues increased by 5424,727 or 4.8%. Key
factors in this growth are as follows;
Increase in property values and new construction resulting in increased ad-valorem taxes of
$672,041 (15.0%).
Revenue from grants increased $169,092.
Investment earnings (interest) increased $169,092 due to rising interest rates.
These increases were offset by the following decreases in revenue
o Fines and forfeitures decreased $316,429 ($300,000 fine collected in 2005).
o Miscellaneous revenue decreased $114,305, due to one-time insurance proceeds of
$62,441 and donations/contribution of 545,000 received in 2005.
11
The amount of General Fund revenue by type, their percent of the total and the amount of change
compared to last fiscal year are shown in the following schedule:
General Fund Change from Prior Year
2006 % of Total ~ % 2005
Revenues Sources
axes 5,166,754 56.1% 672,041 15.0% 4,494,713
thcr taxes (with taxes in graph below) 1,087,759 11.8% 2,932 0.3% 1,084,827
Intcrgovcmmcntal 679,001 7.4% 56,544 9.0% 622,457
'barges for services 507,702 5.5% 16,707 3.0% 490,995
Inteagovcrnmcntal 262,700 2.9% 7,802 3.0% 254,898
rants 365,183 4.0°/> (150,255) -29.0% 515,438
Licenses and permits 544,065 5.9% 78,012 17.0% 466,053
Interest 374,957 4.1% 169,092 82.0% 205,865
Fines and forfeitures 34,075 .04% (316,429) -90.0°/> 350,504
Miscellaneous 175,343 1.9% (114,304) -39.0% 289,647
Lnpact fees 12,293 0.1 % 2,585 27.0% 9,707
Total Rcvcnuc 9,209,831 100% 424,727 4.8% 8,785,104
Revenues by Source -General Fund
^ Licenses and Permits
j.9P ~ Interest ~ Fines and Forfeitures ~ Miscellaneous
4 . I °ro 0.4 °,'o I .9
~ Grants
~ Impact Fees
4.0°iu ~ 0.1
^Intragovernmental
2.9%
~ Taxes
67.9%
®Charges for Services
5.5%
^ Intergovernmental
7.4%
12
Expenditures in the General Fund are shown in the following schedule:
_ ~'rCileral F'U[1C1 Chance from Prior Year
2006 % of Total $ % 2005
Ex enditures
cncral government 1,391,612 16.7% 77,342 6% 1,314,270
Public Safcry 4,736,666 56.7% 393,045 9% 4,343,621
ransportation 807,651 9.7% 182,637 29% 625,014
Leisuro services 692,408 8.3% 168,969 32% 523,439
Capital outlay 239,195 2.8% (17,721) -7% 256,916
Debtscrvicc 486,423 5.8% 36,-40 8% 450,283
Total cx cnditures 8,353,955 100% 840,412 11% 7,5]3,543
In fiscal year 2006, total General fund expenditures increased by $840,412 or 11 percent compared to
the prior year.
The largest dollar increase in the General fund was in Public Safety ($393,045) which
represents 47% of the total increase in expenditures. A portion of this increase is related to
personnel services, with significant increases in overtime. A portion of this overtime is
attributable to the closing of a portion of Tequesta Bridge.
The largest increase in Transportation is primarily due hurricane related expenses ($I41,983).
The largest increase in Leisure services is due to repair and maintenance of Tequesta park
($ 113, 800).
The Special Revenue fund has a total fund balance of $378,976 reserved for paying debt service on the
Improvement Revenue Refunding Bond Series 1994.
Ending fund balance for the Capital Projects fund is $1,460,396 and the Capital Improvement fund is
$362,910, which are designated for capital projects/improvements. Revenue into these funds was from
capital grants and transfers-in. There was a net decrease in fund balances during the current year as
actual expenditures exceeded revenues in the capital projects and capital improvement funds by
$1,448,848. This decrease is mainly due to the cost of repairs on Tequesta bridge of $497,14] and
$2,093,271 related to the construction of the municipal center.
Proprietary funds: The Village's proprietary funds provide the same type of information found in
the government-wide financial statements, but in more detail.
Total net assets at the end of the year for the Water Utility Fund amounted to $14,943,481: an increase
of $1,131,926 (8.2%) from the prior year. Income from operations and connection fees represented
$91.7,779 of this increase. Other factors concerning the finances of this major fund have already been
addressed in the discussion of the Village's business-type activities.
General Fund Budgetary Highlights
During the year there were additional appropriations that increased the original budget by $1,886,432.
13
Differences between the original budgeted expenditures and the final amended budget can be briefly
summarized as follows:
$143,983 increase in general government budget -mainly due an increase in the legal budget
of $120,000 and budgeting a planner.
$225,094 increase in the public safety budget -police patrol increased $99,377 and fire
control increased $119,341
$299,233 increase in transportation budget - $210,674 increase in hurricane expenses,
$42,593 increase in utility services.
$198,795 increase in leisure services budget - $145,400 increases for repair and maintenance
of Tequesta Park.
$197,007 increase in capital outlay budget -various items
$685,531 increase in transfers-out - to fund capital projects/improvements
$1,157,882 (61.4%) of this increase was funded by appropriating existing fund balance and the
remaining increase was funded through increases in various budgeted revenues.
Although the final budgeted operating expenditures were $1,064,112 (13%) greater than the original
budget, actual operating expenditures were $170,285 (2%) greater then the original budget and
$893,817 (10%) less then the amended budget. Additional detail of final budget versus actual:
($305,448) public safety: 52% is a decrease in Police Patrol, personal services
($224,051) general government: 35% decrease Human Resources (position vacant), 21%
decrease in Planning (planner not hired)
($98,782) transportation: 69.6% for hurricane expenses not used
($74,287)leisure services: 42% from repair and maintenance of Tequesta Park rolled forward
to following year.
($174,772) in capital outlay: 36% related to police patrol vehicles; 65% encumbered
($16,477) debt service
Capital Assets and Debt Administration
Capital assets. The Village's capital assets for its governmental and business-type activities as of
September 30, 2006 is $29,098,407 (net accumulated depreciation). These assets include land,
buildings, improvements-other-than-buildings and machinery and equipment. The total increase in the
Village's capital assets for the current fiscal years was 13.3 percent. Following is a detail of capital
assets at September 30, 2006.
Governmental
Activities
Business-type
Activities
$ 83,335
1,353,397
979,512
24,577,173
1,034,558
28,027,975
( 9,072.377
$18,955,598
Total
2006
$ 486,270
4,462,293
5,899,860
26,279,278
4,310,863
41,438,567
(12,340,1601
$29,098,407
Land $ 402,935
Construction in progress 3,108,899
Buildings 4,920,348
Improvements 1,702,105
Equipment 3,276,305
Total capital assets 13,410,592
Less ace. depreciation (3,267,783
Total capital assets, net $10,142,809
14
Additional information on the Village's capital assets can be found in Note 7, Capital Assets, starting
on page 37 of this report.
Long-term Debt. At the end of the current fiscal year, the Village had no general obligation bonded
debt. All of the Village's outstanding debt is secured by specified and general revenue sources.
Village of Tequesta's Outstanding Debt
Governmental Business-type
Activities Activities Total
2006 2005 2006 2005 2006 2005
Revenue Bonds, net $ 380,000 $ 490,000 $ 6,763,985 $ 6,930,075 $ 7,143,985 $ 7,420,075
Notes payable 4,309,826 4,493,579 469,425 524,852 4,779,251 5,018,431
Capital leases 508,887 461,032 508,887 461,032
Compensated Absences 413,198 364,870 140,060 128,630 553,258 493,500
$ 5,611,911 $ 5,809,481 $ 7,373,470 $ 7,583,557 $ 12,985,381 $ 13,393,038
During the current fiscal year, the Village's net outstanding debt, decreased by $407.657 (3%).
Additional information on the Village's long-term debt can be found in Note 9. Long Term Debt
starting on page 40 of this report
Economic Factor and Next Year's Budgets and Rates
The rise in property values and the resulting efFect on ad valorem tax revenue appears to be
the largest single economic factor in developing the Villages budget for the next fiscal year.
Due to the significant increase in this revenue, there was no change in the millage rate for the
Village. We have noted, however, that there is a decline in home sales and although that has
not translated into declining home (taxable) values at this time, we will be watching this
carefully in the next year.
The unemployment rate for the Village of Tequesta is currently 3.7 percent, which is an
increase of 0.6 percent from a rate of 3.1 percent a year ago.
Inflationary trends in the region compare favorable to national indices.
All of these factors were considered in preparing the Village of Tequesta's budget for the 2007
fiscal year.
The Village of Tequesta's water rates are changed each year based on calculations detailed in the
Village's Code of Ordinances. Based on these calculations the water rates were increased 2.36% on
October 1, 2006.
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, 345 Tequesta Drive, Tequesta, Florida 33469
15
Page Intentionally Left Blank
BASIC FINANCIAL STATEMENTS
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2006
A QQL'TQ
Cash and cash equivalents
Investments
Receivables, net
Inventories
Restricted assets:
Cash
Investments
Net pension asset
Other assets
Capital assets not being depreciated
Capital assets being depreciated, net
Total assets
LIABILITIES
Liabilities:
Accounts payable
Retainage payable
Accrued liabilities
Deposits
Due to other governments
Other current liabilities
Unearned revenue
Non-current liabilities:
Due within one year
Due in more than one year
Total liabilities
TTL'T A QOC'i'O
Invested in capital assets, net of related debt
Restricted for debt service
Restricted for renewal and replacement
Unrestricted
Total net assets
Business-
Governmental type
Activities Activities Total
$ 232,056 $ 190,986 $ 423,042
5,879,963 4,130,606 10,010,569
621,082 853,101 1,474,183
39,621 14,547 54,168
- 13,475 13,475
143,370 690,912 834,282
302,250 - 302,250
78,579 169,949 248,528
3,511,834 1,436,732 4,948,566
6,630,975 17,518,866 24,149,841
17,439,730 25,019,174 42,458,904
843,270 157,492 1,000,762
210,133 61,912 272,045
169,083 131,820 300,903
- 308,018 308,018
2,743 - 2,743
81,331 - 81,331
292,346 - 292,346
418,073 228,000 646,073
5,193,838 7,145,470 12,339,308
7,210,817 8,032,712 15,243,529
4,515,096 11,722,188 16,237,284
143,370 133,762 277,132
- 262,607 262,607
5,570,447 4,867,905 10,438,352
$ 10,228,913 $16,986,462 $ 27,215,375
See notes to basic financial statements.
-16-
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VILLAGE OF TEQUESTA, FLORIDA
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2006
ASSETS
Cash and cash equivalents
Investments
Receivables, net
Inventories
Other assets
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Retainage payable
Accrued liabilities
Due to other governments
Other current liabilities
Unearned revenue
Total liabilities
Fund balances:
Reserved for:
Inventories
Debt service
Capital purchases
Encumbrances
Unreserved, designated:
Subsequent years expenditures
Designated for disaster relief
Unreserved, undesignated, reported in:
General Fund
Special Revenue Funds
Capital Project Funds
Total fund balances
Total liabilities and fund balances
Capital Other Total
Projects Governmental Governmental
General Fund Funds Funds
$ 183,739 $ 1,074 $ 47,243 $ 232,056
3,559,957 1,947,111 516,265 6,023,333
244,742 335,000 41,340 621,082
39,621 - - 39,621
74,635 3,944 - 78,579
$ 4,102,694 $ 2,287,129 $ 604,848 $ 6,994,671
$ 170,001 $ 616,600 $ 56,669 $ 843,270
- 210,133 - 210,133
169,083 - - 169,083
2,743 - - 2,743
81,331 - - 81,331
281,736 - 10,610 292,346
704,894 826,733 67,279 1,598,906
39,621 - - 39,621
- - 143,370 143,370
136,789 - - 136,789
152,805 972,500 - 1,125,305
167,970 487,896 36,000 691,866
1,000,000 - - 1,000,000
1,900,615 - - 1,900,615
- - 255,179 255,179
- - 103,020 103,020
3,397,800 1,460,396 537,569 5,395,765
$ 4,102,694 $ 2,287,129 $ 604,848
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.
Net pension asset is not considered to represent a financial asset and therefore
is not reported in the governmental funds
Long-term liabilities, including bonds payable, not due and payable in the current
period and therefore are not reported in the funds
Net assets of governmental activities
10,142,809
302,250
(5,611,911)
$ 10,228,913
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, 2006
Revenues:
Ad valorem taxes
Other taxes
Intergovernmental
Franchise fees based on gross receipts
Charges for services
Intragovernmental
Grants and contributions
Licenses and permits
Interest
Fines and forfeitures
Miscellaneous
Impact fees
Total revenues
Expenditures:
Current:
General government
Public safety
Transportation
Leisure services
Capital outlay
Debt service:
Principal
Interest
Fiscal charges
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Transfers in
Transfers out
Proceeds from capital leases
Total other financing sources (uses)
Net change in fund balances
Fund balances, beginning
Fund balances, ending
Capital Other Total
Projects Governmental Governmental
General Fund Funds Funds
$5,166,754 $ - $ - $ 5,166,754
1,087,759 - - 1,087,759
679,001 - - 679,001
- - 419,929 419,929
507,702 - - 507,702
262,700 - - 262,700
365,183 535,000 - 900,183
544,065 - 87,456 631,521
374,957 - 18,004 392,961
34,075 - 750 34,825
175,343 - - 175,343
12,292 - - 12,292
9,209,831 535,000 526,139 10,270,970
1,391,612 - - 1,391,612
4,736,666 - 497,141 5,233,807
807,651 - - 807,651
692,408 - - 692,408
239,195 2,922,839 - 3,162,034
272,687 - 110,000 382,687
207,889 - 30,135 238,024
5,847 - - 5,847
8,353,955 2,922,839 637,276 11,914,070
855,876 (2,387,839) (111,137) (1,643,100)
393,518 1,162,881 466,969 2,023,368
(1,469,550) - (493,518) (1,963,068)
136,789 - - 136,789
(939,243) 1,162,881 (26,549) 197,089
(83,367) (1,224,958) (137,686) (1,446,011)
3,481,167 2,685,354 675,255 6,841,776
$3,397,800 $1,460,396 $ 537,569 $ 5,395,765
See notes to basic financial statements.
-19-
VILLAGE OF TEQUESTA, FLORIDA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED SEPTEMBER 30, 2006
Amounts reported for governmental activities in the statement of activities
(Page 17) are different because:
Net change in fund balances -total governmental funds (Page 19) $ (1,446,011}
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 3,162,034
Depreciation expense (435,687)
Net adjustment 2,726,347
The issuance of long-term debt provides current financial resources to
governmental funds, while the repayment of the principal of long-term
debt consumes the current financial resources of governmental funds.
The detail of the differences are as follows:
Capital lease proceeds (136,789)
Principal payments:
1994 revenue bonds 110,000
Notes payable 183,753
Capital leases 88,934
Net adjustment 245,898
Some expenses reported in the statement of activities do not require the
use of current financial resources and, therefore, are not reported as
expenditures in governmental funds:
The details of the difference are as follows:
Compensated absences (48,328)
Net pension expenses 36,050
Change in net assets of governmental activities (Page 17) $ 1,513,956
See notes to basic financial statements_
-20-
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2006
ASSETS
Current assets:
Cash and cash equivalents
Investments
Accounts receivable, net
Inventories
Other assets
Restricted assets:
Cash
Investments
Total current assets
Non-current assets:
Capital assets not being depreciated
Capital assets being depreciated
Total non-current assets
Total assets
LIABILITIES AND NET ASSETS
Current liabilities:
Accounts payable
Accrued liabilities
Retainage payable
Current maturities of long-term debt
Current portion of compensated absences
Deposits
Total current liabilities
Long-term liabilities:
1998 revenue bond payable, net of
current maturities
Notes payable, long-term portion
Compensated absences
Total long-term liabilities
Total liabilities
Net assets:
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total net assets
Business-type Activities
Water Nonmajor
Fund Funds Totals
$ 189,082 $ 1,904 $ 190,986
3,441,024 689,582 4,130,606
846,012 7,089 853,101
14,547 - 14,547
169,921 28 169,949
13,475 - 13,475
690,912 - 690,912
5,364,973 698,603 6,063,576
1,408,985 27,747 1,436,732
16,196,903 1,321,963 17,518,866
17,605,888 1,349,710 18,955,598
22,970,861 2,048,313 25,019,174
153,683 3,809 157,492
130,617 1,203 131,820
61,912 - 61,912
200,000 - 200,000
27,936 64 28,000
308,018 - 308,018
882,166 5,076 887,242
6,583,985 - 6,583,985
449,425 - 449,425
111,804 256 112,060
7,145,214 256 7,145,470
8,027,380 5,332 8,032,712
10,372,478 1,349,710 11,722,188
396,369 - 396,369
4,174,634 693,271 4,867,905
$14,943,481 $ 2,042,981 $16,986,462
See notes to basic financial statements.
-21-
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
PROPRIETARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
Operating revenues:
Charges for services
Intergovernmental revenue
Total operating revenues
Operating expenses:
Personnel services
Purchased services
Depreciation
Repairs and maintenance
Management services
Contractual services
Professional services
Utilities
Operating supplies
Other
Insurance
Office supplies
Travel and per diem
Total operating expenses
Operating income
Non-operating revenues (expenses):
Connection fees
Investment income
Interest expense
Total non-operating revenues (expenses)
Income before transfers
Transfers in
Transfers out
Change in net assets
Net assets, beginning
Net assets, ending
Business-type Activities
Water Nonmajor
Fund Funds Totals
$ 4,090,268 $ 585,814 $ 4,676,082
526,471 - 526,471
4,616,739 585,814 5,202,553
989, 521 30,945 1,020,466
693,546 265,587 959,133
800,967 71,597 872,564
357,852 67,310 425,162
248,500 14,200 262,700
96,600 2,491 99,091
69,791 13,034 82,825
316,261 - 316,261
121,252 1,313 122,565
57,600 3,403 61,003
27,792 - 27,792
18,843 - 18,843
2,720 - 2,720
3,801,245 469,880 4,271,125
815,494 115,934 931,428
458,658 25,307 483,965
243,786 36,879 280,665
(386,012) - (386,012)
316,432 62,186 378,618
1,131,926 178,120 1,310,046
(60,300) (60,300}
1,131,926 117,820 1,249,746
13, 811,55 5 1,925,161 15,736,716
$14,943,481 $ 2,042,981 $16,986,462
See notes to basic financial statements.
-22-
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
Cash flows from operating activities:
Cash received from customers, governments and other funds
Cash paid to suppliers
Cash paid to employees
Net cash provided by operating activities
Cash flows from non-capital financing activities:
Transfers to other funds
Net cash used in non-capital financing activities
Cash flows from capital and related financing activities:
Acquisition and construction of capital assets
Connection fees
Principal payments
Capital lease payments
Interest paid
Net cash used in capital and related financing activities
Cash flows from investing activities:
Purchases of investments
Increase in restricted assets
Interest received on investments
Net cash provided by (used in) investing activities
Net increase in cash and cash equivalents
Cash and cash equivalents, beginning
Cash and cash equivalents, ending
Adjustments to reconcile operating income to net cash provided
by operating activities:
Operating income
Miscellaneous revenue
Depreciation and amortization
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable
Inventories
Other assets
Increase (decrease)in:
Business-type Activities
Water Nonmajor
Fund Funds Totals
$ 4,242,778 $ 611,769
(2,126,289) (434,153)
(977,284) (30,933)
1,139,205 146,683
- (60,300)
- (60,300)
$ 4,854,547
(2,560,442)
(1,008,217)
1,285,888
(60,300)
(60,300)
(1,494,319) (63,765) (1,558,084)
458,658 - 458,658
(160,000) - (160,000)
(61,517) - (61,517)
(386,012) - (386,012)
(1,643,190) (63,765) (1,706,955)
507,193 (58,173) 449,020
(86,406) - (86,406)
243,786 36,879 280,665
664,573 (21,294) 643,279
160,588 1,324 161,912
28,494 580 29,074
$ 189,082 $ 1,904 $ 190,986
$ 815,494 $ 115,934 $ 931,428
- 25,307 25,307
800,967 71,597 872,564
(381,101) 648
(1,296) (13)
4,246 (66,790)
Accounts payable (121 202}
Accrued liabilities 3,631
Compensated absences 11,326
Customer deposits 7,140
Net cash provided by operating activities $ 1,139,205
See notes to basic financial statements.
-23-
$ 146,683
(380,453)
(1,309)
(62,544)
(121,202)
3,631
11,326
7,140
$ 1,285,888
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
SEPTEMBER 30, 2006
ASSETS
Cash and cash equivalents
Investments, at fair value:
Corporate stocks
Corporate bonds
Government backed assets
Contribution receivable
Accrued interest receivable
Total assets
LIABILITIES AND NET ASSETS
Accounts payable
Total liabilities
Net assets held in trust for pension benefits
Pension
Trust
Funds
$ 354,072
2,247,796
161,343
1,362,029
36,804
18,066
4,180,110
11,778
11,778
$4,168,332
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, 2006
ADDITIONS
Contributions:
Employer
Employee
Insurance premium taxes
Total contributions
Investment income
Net appreciation in fair value of investments
Investment earnings
Less investment expenses
Net investment income
Total additions
DEDUCTIONS
Pension benefits
Operating expenses
Total deductions
Net increase
Net assets held in trust for pension benefits:
Net assets, beginning
Net assets, ending
See notes to basic financial statements.
-25-
Pension
Trust
Funds
$ 280,378
156,544
152,414
589,336
103,958
i 10,549
214,507
43.065
171,442
760,778
49,547
25,652
75,199
685,579
3,482,753
$4,168,332
NOTES TO BASIC FINANCIAL STATEMENTS
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
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 aCouncil-Manager form of government. The
Village's major operations include public safety (police, fire rescue/EMS), streets and roads,
culture and recreation, public improvements, planning and zoning, water, stormwater, recycling
services and general and administrative. The financial statements of the Village have been
prepared in conformity with accounting principles generally accepted in the United States
(GAAP) as applied to governmental units. The Governmental Accounting Standards Board
(GASB) is the accepted standard-setting body for establishing governmental and financial
reporting principles. The more significant of the Village's accounting policies are described
below:
a. The Financial Reporting Entity
The financial statements were prepared in accordance with government accounting standards,
which establishes standards for defining and reporting on the financial reporting entity. The
definition of the financial reporting entity is based upon the concept that elected officials are
accountable to their constituents for their actions. One of the objectives of financial reporting
is to provide users of financial statements with a basis for assessing the accountability of the
elected officials. The financial reporting entity consists of the Village, organizations for which
the Village is financially accountable and other organizations for which the nature and
significance of their relationship with the Village are such that exclusion would cause the
reporting entity's financial statements to be misleading or incomplete. The Village is
financially accountable fora component unit if it appoints a voting majority of the
organization's governing board and it is able to impose its will on that organization or there is
a potential for the organization to provide specific financial benefits to, or impose specific
financial burdens on, the Village.
Based upon the application of these criteria, the Village Employees' Retirement System (the
Retirement System) meets the criteria described above and has been included in the
accompanying financial statements. The Retirement System functions for the benefit of the
employees and is governed by a seven member board, of which the Village Council appoints
three members. The Village and Retirement System members are obligated to fund all
Retirement System costs based upon actuarial valuations. The Village funds the difference
between member and other contributions and the actuarial cost. Considering these factors, it
has been determined that the Retirement System is fiscally dependent on the Village, which
makes the Retirement System a component unit of the Village. Since the Retirement System
provides services exclusively for the benefit of the Village, the Retirement System is reported
as a blended component unit, specifically as the Village Employees' Retirement System. The
Village Employees' Retirement System administers the following Plans: The General
Employees' Pension Trust Fund, which does not issue a stand alone financial report, and The
Public Safety Officers' Pension Trust Fund which consists of The Firefighters' Pension Trust
Fund, and The Police Officers' Pension Trust Fund. The Public Safety Officers' Pension
Trust Fund does not issue a stand 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 statement of net assets and the statement
of activities) report information on all of the non-fiduciary activities of the Village. For the
most part, the effect of interfund activity has been removed from these statements.
Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely to a significant
extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or
segment. Taxes and other items not properly included among program revenues are reported
instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements. All remaining nonmajor
governmental funds or proprietary funds are aggregated and reported as other governmental or
other proprietary funds.
c. Measurement Focus, Basis of Accounting and Basis of Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and
fiduciary fund financial statements. Revenues are recorded when earned and expenses are
recorded when a liability is incurred, regardless of the timing of related cash flows. Property
taxes are recognized as revenues in the year for which they are levied. Grants and similar
items are recognized as revenue as soon as all eligibility requirements imposed by the provider
have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available
when they are collectible within the current period or soon enough thereafter to pay liabilities
of the current period. For this purpose, the Village considers revenues to be available if they
are collected within 60 days of the end of the current fiscal period. Expenditures are recorded
when a liability is incurred, as under accrual accounting. However, debt 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 received by the Village.
The Village reports the following major governmental funds:
The General Fund is the Village's primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another
fund.
The Capital Projects Fund accounts for the acquisition or construction of various major
capital projects.
The Village also reports the following nonmajor government funds:
The Special Revenue Fund accounts for revenue sources that are legally restricted to
expenditures for specific resources. The Special Revenue Fund accumulates revenues as
required by the Improvement Revenue Refunding Bonds, Series 1994. These revenues
include franchise fees and occupational licenses.
The Special Law Enforcement Fund accounts for forfeitures received by the Police
Department. The forfeitures must be expended for certain law enforcement purposes as
prescribed by Florida Statue Chapter 932.704.
The Capital Improvement Fund is used to account for the maintenance and upkeep of
the Village's general infrastructure (such as roads, bridges, sidewalks and storm
water drainage systems) and streetscape beautification projects.
The Village reports the following major proprietary funds:
The Water Fund is used to account for the activities of the water operations.
The Village also reports the following nonmajor proprietary funds:
The Stormwater Utility Fund accounts for the construction and maintenance of the
Village's stormwater system.
The Refuse and Recycling Fund is used to account for the fees charged for solid waste and
recyclable material collection.
-28-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
d. Assets, Liabilities, and Net Assets or Equity (Continued)
4. Capital Assets (Continued)
and year end workpaper files. 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.
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend assets lives are not capitalized. Major outlays for capital assets and
improvements are capitalized as projects are constructed. Interest incurred during the
construction phase of capital assets of business-type activities is included as part of the
capitalized value of the asset constructed. There was no capitalized interest expense in 2006.
Capital assets of the Village are depreciated using the straight line method over the
following estimated useful lives:
Buildings 20 - 40 years
Improvements 20 - 30 years
Equipment 3 - 10 years
GASB Statement No. 34 allows municipalities a four year period from the date of
implementation to record the various components of infrastructure assets. The Village
capitalizes current year additions only.
5. Compensated Absences
It is the Village's policy to permit employees to accumulate within certain limits, earned
but unused vacation time and sick leave, which will be paid to employees upon separation
from Village service. All vacation and sick leave pay is accrued when incurred in the
government-wide and proprietary fund financial statements. In the governmental funds, a
liability is recorded only for unused vacation and sick leave payouts for employees who
have separated, for example, as a result of employee resignations and retirements. 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 type
statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred
and amortized over the life of the bonds using the straight-line amortization method. The
result of using this method does not differ significantly from the effective interest method.
Bonds payable are reported net of the applicable bond premium or discount.
-31-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
d. Assets, Liabilities, and Net Assets or Equity (Continued)
6. Long-Term Obligations (Continued)
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of
debt issued is reported as other fmancing sources. Premiums received on debt issuances
are reported as other fmancing sources while discounts on debt issuances are reported as
other financing uses. Issuance costs, whether or not withheld from the actual debt
proceeds received, are reported as debt service expenditures.
7. Use of Estimates
The financial statements and related disclosures are prepared in conformity with
accounting principles generally accepted in the United States. Management is required to
make estimates and assumptions that affect the reported amounts of assets and liabilities,
the disclosure of contingent assets and liabilities at the date of the financial statements and
revenue and expenses during the period reported. These estimates include assessing
collectibility of accounts receivable, the pension obligations, and useful lives and
impairment of tangible assets, among others. Estimates and assumptions are reviewed
periodically and the effects of revisions are reflected in the financial statements in the
period they are determined to be necessary. Actual results may differ from those estimates.
S. 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 1 S` and billed the following October.
They are due and payable on November ls` of each year or as soon thereafter as the assessment
roll is certified and delivered to the Tax Collector. These taxes are collected by the County and
remitted to the Village. Revenue is recognized at the time monies are received from the County.
All unpaid taxes become delinquent on April 1 following the year in which they are assessed.
Discounts are allowed for early payment at the rate of 4% in the month of November, 3% in the
month of December, 2% in the month of January and 1 % in the month of February. The taxes
paid in March are without discount. At September 30`h, unpaid delinquent taxes, if any, are
reflected as a receivable on the balance sheet.
-32-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 2. PROPERTY TAXES (Continued)
Assessed values are established by the Palm Beach County Property Appraiser at approximately
fair market value. The assessed value of property at January 1, 2006, upon which the 2005-2006
levy was based, was approximately $981 million.
Under Florida law, the assessment of all properties and the collection of all county, municipal,
school district and special district property taxes are consolidated in the offices of the County
Property Appraiser and County Tax Collector. The Village is permitted by Article 7, Section 8 of
the Florida Constitution to levy taxes up to $10 (10 mills) per $1,000 of assessed valuation for
general governmental services (other than the payment of principal and interest on general
obligation long-term debt). In addition, unlimited amounts may be levied for the payment of
principal and interest on general obligation long-term debt, subject to a limitation on the amount
of debt outstanding. The millage rate to finance general governmental services for the year ended
September 30, 2006 was 6.4980 mills per $1,000 of assessed valuation. There were no material
delinquent property taxes at September 30, 2006.
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 public depository, the remaining public depositories would be
responsible for covering any resulting losses. Accordingly, all deposits are considered insured
or collateralized with securities held by the entity or its agent in the entity's name.
Investments
Florida Statutes authorize the Village to invest surplus funds in the Local Government Surplus
Funds Trust Fund, negotiable direct obligations of or obligations unconditionally guaranteed
by the U.S. Government; interest bearing time deposits in financial institutions located in
Florida and organized under Federal or Florida laws; obligations of the Federal Farm Credit
Banks, the Federal Home Loan Mortgage Corporation, the Federal Home Loan Bank or its
district banks, or obligations guaranteed by the Government National Mortgage Association
and obligations of the Federal National Mortgage Association.
Investments consist of the Local Government Surplus Funds Trust Fund administered by State
Board of Administration and investments held by the Village's retirement funds. The Local
Government Surplus Funds Trust Fund is governed by Ch. 19-7 of the Florida Administrative
Code, which identifies the Rules of the State Board of Administration. These rules provide
guidance and establish the general operating procedures for the administration of the Local
Government Surplus Funds Trust Fund. Additionally, the Office of the Auditor General
-33-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 3. DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
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 fora 2a-7 fund.
At year end, the Village's investment balances were as follows:
Investment Maturity
(In Years)
Less than
Retirement plan corporate bonds
Retirement plan U.S. Agencies
Retirement plan U.S. Treasuries
Fair Value 1 Year 1-5 Years
$ 161,343 $ - $ 161,343
1,159,478 - 1,159,478
217,808 - 217,808
$1,538,629 $ - $ 1,538,629
Interest Rate Risk. The Village does not have a formal investment policy that limits
investment maturities as a means of managing its exposure to market value losses arising from
increasing interest rates. The Village Pension Board of Trustees has an investment policy to
obtain a reasonable total rate of return to commensurate with the Prudent Investor Rule and
any other applicable statute. The Pension Board employs a professional Investment Manager
to invest the assets of the funds. Within the parameter allowed by the Prudent Investor Rule,
the asset allocation of the funds is solely at the Investment Manager's discretion, including
sector weightings and investment style. Additionally, the Board of Trustees retain a
monitoring service to evaluate and report on a quarterly basis the rate of return and relative
performance of the Funds.
The state investment pool, administered by the State Board of Administration of Florida,
contained certain floating rate notes during the fiscal year and at September 30, 2006, which
were indexed based on the prime rate and/or one and three month LIBOR rates.
Credit Risk. The Village's investment policy does not address the requirement of ratings by a
nationally recognized statistical rating organization (NRSRO), i.e. Standard and Poor's and
Moody's Investment Services. The SBA does not have a rating from a NRSRO. All
corporate bonds and agency bonds were ranked "Aaa" under Moody's ratings.
Concentration of Credit Risk. The Pension Board investment policy does not allow for an
investment in any one issuer that is in excess of five percent of total assets, nor shall the
aggregate exceed five percent of the outstanding capital stock of the issuer.
-34-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 3. DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
Custodial Credit Risk -Investments. For an investment, this is the risk that, in the event of the
failure of the counter party, the Village will not be able to recover the value of the investments
or collateral securities that are in the possession of an outside party. The Village's investment
policy does not address the requirement of custody considering all investments are in outside
investment pools. The Pension Trust investment policy requires all investments be placed in
the custody (custodian) of a Qualified Public Depository, pursuant to Florida Statute 280. The
plan assets are held by a third party custodian, and all securities purchased by, and all
collateral obtained by, the plan shall be properly designated as plan assets. Securities
transactions between abroker-dealer and the custodian involving purchase or sale of securities
by transfer of money or securities must be made on a "delivery vs. payment" basis to insure
that the custodian will have the security or money in hand at conclusion of the transaction.
NOTE 4. RECEIVABLES
Receivables at September 30, 2006 for the government's individual major funds, nonmajor and
fiduciary funds in the aggregate, including the applicable allowance for uncollectible accounts,
are as follows:
Nonmajor Pension
Capital and Other Trust
General Projects Water Funds Funds Total
Customers billed
Other taxes
Contributions
Miscellaneous
Employees
Intergovernmental
Franchise fees
Gross receivables
Less allowance for uncollectibles
Net total receivables
$122,109 $
103,677
30,378
859
19,198
276,221
(31,479)
$ 244,742
- $360,810 $ 5,161 $
- 1,140
335,000 488,562
335,000 850,512
- (4,500)
$ 335,000 $ 846,012
-35-
1,928
41,340
48,429
$ 48,429
36,804
36,804
$ 36,804
$ 488,080
103,677
36,804
33,446
859
842,760
41,340
1,546,966
(35,979)
$1,510,987
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 4. RECEIVABLES (Continued)
At the end of the current fiscal year, various components of unearned revenue reported in the
governmental funds were as follows:
Prepayments on T-Mobile lease (general fund) $ 82,610
Prepayments on Nextel lease (general fund) 148,060
Advance receipts for special events (general fund) 43,520
Disaster relief (general fund) 851
Licenses and registrations not yet due (general fund) 3,955
Licenses and registrations not yet due (special revenue fund) 10,610
Permits not yet due (general fund) 2,740
$ 292,346
NOTE 5. INTERFUND TRANSFERS
Interfund transfers during the year ended September 30, 2006 are as follows:
Transfers In
Capital Nonmajor
General Projects Governmental
Transfers Out Fund Fund Fund Total
General fund $ - $ 1,062,881 $ 406,669 $1,469,550
Nonmajor governmental 393,518 100,000 - 493,518
Stormwater utility - - 60,300 60,300
Total $393,518 $ 1,162,881 $ 466,969 $2,023,368
Transfers are used to (1) move excess revenues from special revenue fund as required by bond
covenants, (2) move revenues from the fund with collection authorization to the fund where debt
service principal and interest payments become due.
Interfund Administrative Fee
During the year ended September 30, 2006, the Enterprise Funds remitted $262,700 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.
-36-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 6. RESTRICTED ASSETS
Restricted assets as of September 30, 2006 consist of the following accounts:
Cash Investments Total
Customer deposits
Renewal and replacement
Debt service
Total restricted assets
$ 9,252 $ 298,76b $ 308,018
4,223 258,384 262,607
- 277,132 277,132
$13,475 $ 834,282 $ 847,757
NOTE 7. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2006 was as follows:
Government activities:
Capital assets not being depreciated:
Land
Construction in progress
Total capital assets not being depreciated
Capital assets being depreciated:
Buildings
Improvements other than buildings
Equipment
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings
Improvements other than buildings
Equipment
Total accumulated depreciation
Total capital assets being depreciated, net
Governmental activities capital assets, net
Beginning Ending
Balance Additions Deductions Balance
$ 402,935 $ - $ - $ 402,935
575,685 2,533,214 - 3,108,899
978,620 2,533,214 - 3,511,834
4,767,001 153,347 - 4,920,348
1,471,110 230,995 - 1,702,105
3,064,327 244,478 (32,500) 3,276,305
9,302,438 628,820 (32,500) 9,898,758
(432,575) (121,096) - (553,671)
(292,497) (63,488) - (355,985)
(2,239,524) (251,103) 32,500 (2,358,127)
(2,864,596) (435,687) 32,500 (3,267,783)
6,437,842 193,133 - 6,630,975
$ 7,416,462 $2,726,347 $ - $10,142,809
-37-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 7. CAPITAL ASSETS (Continued)
Beginning Ending
Balance Additions Deletions Balance
Business-type activities:
Capital assets not being depreciated:
Land $ 83,335 $ - $ - $ 83,335
Construction in progress 1,255,007 1,156,022 (1,057,632) 1,353,397
Total capital assets not being depreciated 1,338,342 1,156,022 (1,057,632) 1,436,732
Capital assets being depreciated:
Buildings 979,512 - - 979,512
Improvements other than buildings 23,194,807 1,382,366 - 24,577,173
Equipment 982,908 77,328 (25,678) 1,034,558
Total capital assets being depreciated 25,157,227 1,459,694 (25,678) 26,591,243
Less accumulated depreciation for:
Buildings (430,628) (24,488) - (455,116)
Improvements other than buildings (7,272,528) (758,901) - (8,031,429)
Equipment (522,335) (89,175) 25,678 (585,832)
Total accumulated depreciation (8,225,491) (872,564) 25,678 (9,072,377)
Total capital assets being depreciated, net 16,931,736 587,130 - 17,518,866
Business-type activities capital assets, net $18,270,078 $1,743,152 $(1,057,632) $18,955,598
Depreciation expense was charged to functions/programs of the Village as follows:
Governmental activities:
General government $ 17,469
Public safety 335,320
Transportation 26,633
Leisure services 56,265
Total depreciation expense -governmental activities $435,687
Business-type activities:
Water $ 800,967
Nonmajor funds 71,597
Total depreciation expense -business-type activities $ 872,564
NOTE 8. CAPITAL LEASES
The Village entered into a capital lease in the amount of $397,922 during February 2003 for the
financing of a fire pumper. The applicable interest rate is 3.610% and interest and principal
payments are due annually on April 15`h. The lease expires on April 15, 2012.
-38-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 8. CAPITAL LEASES (Continued)
The following is a schedule of the future minimum lease payments under this capital lease
arrangement at September 30, 2006:
Fiscal year ending September 30:
2007 $ 46,720
2008 46,720
2009 46,720
2010 46,720
2011 46,720
2012 46,720
Total minimum lease payments 280,320
Less amount representing interest (32,268)
Present value of future rnirinnum lease payments $248,052
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 6.15% with monthly
principal and interest payments totaling $595.22. The lease expires on December 1, 2008.
The following is a schedule of the future minimum lease payments under this capital lease
arrangement at September 30, 2006:
Fiscal. year ending September 30:
2007 $ 7,143
2008 7,143
2009 1,786
Total minimum lease payments 16,072
Less amount representing interest (1,098)
Present value of future minimum lease payments $14,974
The Village entered into a capital lease in the amount of $21,998 during January 2004 for the
financing of a 2004 Ford F-150 supercrew pickup truck. The applicable interest rate is 4.63% with
monthly principal and interest payments totaling $655.63. The lease expires on December 30,
2006.
The following is a schedule of the future minimum lease payments under this capital lease
arrangement at September 30, 2006:
Fiscal year ending September 30:
2007 $1,967
Total minimum lease payments 1,967
Less amount representing interest (16)
Present value of future minimum lease payments $1,951
-39-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 8. CAPITAL LEASES (Continued)
The Village entered into a capital lease in the amount of $152,999 during July 2005 for the
financing of a 2005 American Lafrance Medic Master ambulance. The applicable interest rate is
3.78% with monthly principal and interest payments totaling $2,802.55.
The following is a schedule of the future minimum lease payments under this capital lease
arrangement at September 30, 2006.
Fiscal year ending September 30:
2007 $ 33,631
2008 33,631
2009 33,631
2010 25,223
Total minimum lease payments 126,116
Less amount representing interest (8,702)
Present value of future minimum lease payments $ 117,414
The Village entered into a capital lease in the amount of $136,789 during May 2006 for the
financing of 800mghz radios for the police department. The applicable interest rate is 6.83% with
monthly principal and interest payments totaling $2,542.70. The lease expires on Apri121, 2011.
Fiscal year ending September 30:
2007 $ 30,512
2008 30,512
2009 30,512
2010 30,512
2011 17,799
Total minimum lease payments 139,847
Less amount representing interest (13,351)
Present value of future minimum lease payments $126,496
NOTE 9. LONG-TERM DEBT
The following is a summary of changes in long-term liabilities of the Village for the year ended
September 30, 2006:
Governmental Activities
Revenue Bonds -1994
The Village issued Improvement Revenue Refunding Bonds, Series 1994, in the amount
of $1,365,000 with an interest rate of 6.15% dated June 24, 1994 and a maturity date of
July 1, 2009. Pursuant to the Bond Resolution, 16-93/94, the Village is obligated to use
-40-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 9. LONG-TERM DEBT (Continued)
Governmental Activities (Continued)
Revenue Bonds -1994 (Continued)
Franchise Fees and Occupational Licenses Fees to pay the principal and interest on the
bonds. At September 30, 2006, $380,000 of this issue was outstanding. Remaining
revenues after all principal and interest payments may be used for any lawful purpose.
Debt service requirements to maturity are as follows:
Year ending September 30:
2007
2008
2009
Total
Note Payable
Principal Interest Total
$120,000 $ 23,370 $143,370
125,000 15,990 140,990
135,000 8,303 143,303
$380,000 $ 47,663 $427,663
On September 13, 2002, the Village Council authorized management to enter into a
$5,000,400 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:
2007 $ 191,774 $ 180,727 $ 372,501
2008 200,143 172,358 372,501
2009 208,881 163,620 372,501
2010 217,998 154,504 372,502
2011 227,514 144,987 372,501
2012-2016 1,295,494 567,013 1,862,507
2017-2021 1,604,015 258,492 1,862,507
2022 364,007 8,494 372,501
Total $ 4,309,826 $ 1,650,195 $ 5,960,021
-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 March 1, 1998 and a maturity date of March
1, 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,
2006, the outstanding balance was $6,850,000.
Debt service requirements to maturity are as follows:
Principal Interest Total
Year ending September 30:
2007 $ 180,000 $ 341,185 $ 521,185
2008 185,000 333,015 518,015
2009 195,000 324,415 519,415
2010 205,000 315,113 520,113
2011 215,000 305,135 520,135
2012-2016 1,245,000 1,350,228 2,595,228
2017-2021 1,600,000 987,845 2,587,845
2022-2026 2,050,000 522,750 2,572,750
2027-2028 975,000 50,609 1,025,609
Total 6,850,000 4,530,295 11,380,295
Less unamortized discount (86,015) - (86,015)
$ 6,763,985 $ 4,530,295 $11,294,280
Water Expansion Loan
On June 30, 2004, the Village entered into a $645,170 loan agreement with Bank of America,
with an interest rate of 4.96% per annum, maturing May 1, 2024. Proceeds from the note are
to be used to finance the expansion of the Village water system. Interest on the outstanding
principal balance is paid in arrears, on the first day of each and every May and November,
commencing November 1, 2004. This note will be repaid in 19 installments of principal due
on the first day of each May, commencing May 1, 2005. The final payment of the entire
unpaid principal balance and all accrued and unpaid interest is due on May 1, 2024. The
principal may be prepaid at the option of the Village in whole or in part, on November 1 or
May 1, in which case there shall be no prepayment premium or penalty. As of September 30,
2006, $135,745 has been prepaid on the note.
-42-
Village has established all of the required reserve accounts.
-44-
VILLAGE OF TEQUESTA, FLORIDA
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLANDESCRIPTIONAND CONTRIBUTIONINFORMATION(Continued)
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 six or more years of credited service and
attains age 55, or completes 25 years of credited service and attains age 52, is eligible for
normal retirement benefits. The monthly retirement benefit shall be equal to 3% for the
first six (6) years of service, 3.5% for the next four (4) years of service, 4% for the next
five (5) years of service, 3% for the next six (6) years of service, 2% for the next four (4)
years of service and 3% for all years after twenty-five years of service. Early retirement
may be taken after a firefighter or police office attained the age of 50 and has six (6} years
of credited service. In the event of early retirement, benefits are actuarially reduced to take
into account the firefighter or police officer younger age and earlier commencement of
retirement benefits. Such reduction shall not exceed 3% per year. Disability benefits can
be received for total and permanent disabilities as determined by the Board of Trustees. If
the pension is granted, the benefit amount shall be as follows:
If the injury or disease is service connected, the firefighter or police officer shall be entitled
to the greater of (a) or (b}:
(a) A monthly pension equal to 42% of his average monthly compensation as of his/her
disability retirement date, or
(b) The accrued normal retirement benefit.
If the injury or disease is not service connected, the firefighter or police officer shall be
entitled to the greater of (a) or (b):
(a) A monthly pension equal to 25% of his average monthly compensation as of his/her
disability retirement date, or
(b) The accrued normal retirement benefit.
If the firefighter or police officer dies prior to retirement from the Village, his beneficiary
shall receive the following benefit:
(a) Line-of-Duty-Death-Benefit - a pension to the spouse (or children) of 50% of
Average Final Compensation for life.
(b) Non-Line-of- Duty-Death -the spouse of a member with six years of credited service
will receive the actuarial equivalent of the accrued early or normal retirement benefit.
If the firefighter or police officer dies or terminates employment with less than six years of
credited service, he is entitled to a refund of the money he contributed.
-47-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLANDESCRIPTIONAND CONTRIBUTION INFORMATION(Continued)
a. Public Safety Officers' Trust Fund (Continued)
Funding Policy
Firefighters are required to contribute 6.1% 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 (premium tax) imposed upon casualty and property insurance premiums on
policies written within the Village. In accordance with Florida Statute 175.351(1)(a} the
premium tax income is placed in the pension trusts solely and exclusively for the use of the
firefighters and police officers where it becomes an integral part of that pension plan. The
amount of the state contributions were made directly to the Firefighters' and Police
Officers' pension trust for fiscal year ended September 30, 2006 were $86,714 and $65,700
respectively, rather than flowing it through the General Fund before transferring them to
the appropriate plans. The Village will correct this in future years. The Village is required
to contribute an 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, 2006.
FIREFIGHTERS' PENSION FUND
STATEMENT OF FIDUCIARYNET ASSETS
SEPTEMF3ER 3Q 2006
ASSETS
Cash and cash equivalents $ 227,959
Investments 2,291,683
Accrued interest 10,092
Contributions receivable 24,525
Total assets 2,554,259
LIABILITIES AND NET ASSETS
Accounts payable 5,697
Total liabilities 5,697
Net assets held in trust for pension benefits $2,548,562
-48-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLANDESCRIPTIONAND CONTRIBUTIONINFORMATION(Continued)
a. Public Safety Officers' Trust Fuud (Continued)
FIREFIGHTERS' PENSION FUND
STATEMEN"I' OF CHANGES IN FIDUCIARYNET ASSETS
DEDUCTIONS
FISCAL YEAR FNDID SEPTEMBER 30, 2006
ADDITIONS
Contributions $ 164,749
Insurance premium taxes 86,714
Investment income, net 86,291
Total additions 337,754
Pension benefits and refunds 17,948
Operating expenses 11,991
Total deductions 29,939
Net increase 307,815
Net assets held in trust for pension benefits:
Net assets, beginning 2,240,747
Net assets, ending $ 2,548,562
The Police Officers' Pension Fund (part of the Public Safety Officers' Trust Fund} does
issue separate stand alone financial statements. Included below is the Statement of
Fiduciary Net Assets and the Statement of Changes in Fiduciary Net Assets as of and for
the year ended September 30, 2006.
POLICE OFFICERS' PENSION FUND
STATEMENT OF FIDUCIARYNET ASSET'S
SEPTEMBER 30, 2006
ASSETS
Cash and cash equivalents $ 73,875
Investments 742,670
Accrued interest 3,271
Contribution receivable 4,293
Total assets 824,109
LIABILITIES AND NET ASSETS
Accounts payable 2 364
Total liabilities 2,364
Net assets held in trust for pension benefits $821,745
-49-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLANDESCRIPTIONAND CONTRIBUTIDNINFORMATION(Continued}
a. Public Safety Officers' Trust Fund (Continued)
POLICE OFFICERS' PENSION FUND
STATEMENT OF CHANGES IN FIDUCIARYNET ASSETS
FISCAL YEAR ENDID SEPTEMBER 30, 2006
ADDITIONS
Contributions $ 99,286
Insurance premium taxes 65,700
Investment income, net 27,164
Total additions 192,150
DEDUCTIONS
Pension benefits and refunds 23,253
Operating expenses 3,663
Total deductions 26,916
Net increase 165,234
Net assets held in trust for pension benefits:
Net assets, beginning 656,511
Net assets, ending $821,745
b. General Employees' Pension Trust Fund
Plan Description
Any general employee who attains age 62, or completes 30 years of credited service
regardless of age, is eligible for normal retirement benefits. The monthly amount of
normal retirement income for a general employee is equal to the number of years of
credited service multiplied by 2% of his average highest compensation. Early retirement
may be taken after a general employee has attained the age of 50 and has six (6) years of
credited service. In the event of early retirement, benefits are actuarially reduced to take
into account the general employee younger age and earlier commencement of retirement
benefits. Such reduction shall not exceed 5% per year. Disability benefits can be received
for total and permanent disabilities as determined by the Board of Trustees. If the pension
is granted, the benefit amount shall be as follows:
-50-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLANDESCRIPTIONAND CONTRIBUTIONINFORMATION(Continued)
b. 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 monthly compensation as of his
disability retirement date, 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 final five years of service.
If the injury or disease is not service connected, the general employee shall be entitled to
the greater of (a) or (b):
(a} A monthly pension equal to 25% of his average monthly compensation based on his
final five (5) years of service, 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 final five years of service.
If the general employee dies prior to retirement from the Village, his beneficiary shall
receive an amount equal to the vested pension benefit. A survivor benefit is payable to the
beneficiary starting when the member would have reached retirement age.
If the general employee dies or terminates employment with less than six years of credited
service, he is entitled to a refund of the money he contributed.
Funding Policy
General employees are required to contribute 5% of their compensation to the plan. The
Village is required to contribute the remaining amount to fund the plan using the aggregate
actuarial cost method as approved by the plan's Board of Trustees. The aggregate method
does not separately identify or amortize the unfunded actuarial liability.
The General Employees' Pension Trust Fund does not issue separate stand alone financial
statements. Therefore, included below is the Statement of Fiduciary Net assets and the
Statement of Changes in Fiduciary Net Assets as of and for the year ended September 30,
2006.
-51-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLANDESCRIPTIONAND CONTRIBUTIONINFORMATION(Continued)
b. General Employees' Pension Trust Fund (Continued)
Funding Policy (Continued)
GENERAL EMPLOYEES' PENSION TRUST FUND
STATEMENT OF FIDUCIARYNET ASSETS
SEPTEMBER 3Q 2006
ASSETS
Cash and cash equivalents $ 52,238
Investments 736,815
Accrued interest 4,703
Contributions receivable 7,986
Total assets 801,742
LIABILITIES AND NET ASSETS
Accounts payable 3,717
Total liabivtie s 3,717
Net assets held in trust for pension benefits $798,025
GENERAL EMPLOYEES' PENSION TRUST FUND
STATEMENT OF CHANGES IN FIDUCIARYNET ASSETS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
ADDITIONS
Contributions $172,887
Investment income, net 57,987
Total additions 230,874
DEDUCTIONS
Pension benefits and refunds 8,346
Operating expenses 9,998
Total deductions l 8344
Net increase 212,530
Net assets held in trust for pension benefits:
Net assets, beginning 585,495
Net assets, ending $ 798,025
-52-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLANDESCRIPTIONAND CONTRIBUTIONINFORMATION(Continued)
Annual Pension Cost
The Village's 2006 annual pension cost and actual contributions for each plan are shown
below. The required contributions were determined as part of the October 1, 2005 actuarial
valuation for each plan.
Fiscal Year Ending
Firefighters' Retirement System:
September 30, 2004
September 30, 2005
September 30, 2006
Police Officers' Retirement System:
September 30, 2004
September 30, 2005
September 30, 2006
General Employees' Retirement System:
September 30, 2004
September 30, 2005
September 30, 2006
Three-Year Trend Information
Annual Percentage Net Pension
Pension of APC Obligation
Cost (APC) Contributed Asset
$ 143,153 97.6% $ (138,066)
148,675 101.8% (140,790)
169,327 106.5% (151,797)
$ 57,676 97.5% $ (73,826)
59,912 115.3% (83,018)
108,234 104.0% (87,374)
92,657 80.0% (42,826}
96,383 99.5% (42,392)
89,226 123.2% (63,079)
Components of Annual Pension Cost and Net Pension Asset
Police General
Firefighters' Officers' Employees
Annual required contribution (ARC) $ 165,394 $106,969 $ 88,512
Interest on net pension obligation (NPO) (12,278) (7,821) (3,391)
Adjustment to ARC 16,211 9,086 4,105
Annual pension cost 169,32? 108,234 89,226
Actual contributions 180,334 112,590 109,913
Increase (decrease) in net pension obligation (asset) (11,007) (4,356) (20,687)
Net pension obligation (asset), begn~ning (140,790) (83,018) (42,392)
Net pension obligation (asset), ending $ (151,797) $ (87,374) $ (63,079)
-53-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. VILLAGE EMPLOYEES' RETIREMENT SYSTEM (Continued)
PLANDESCRIPTIONAND CONTRIBUTIONINFORMATION(Continued)
Components of Annual Pension Cost and Net Pension Asset (Continued)
Valuation date
Actuarial cost method
Amortized method
Remaining amortization period
Asset valuation method
Administrative costs
Actuarial assumptions:
Investment rate of return*
Projected salary increase*
*Includes inflation at
Cost of living adjustments
Police General
Firefighters Officers Employees
Pension Pension Pension
Fund Fund Fund
10/ 1 /2005 10/ 1/2005 10/ 1 /2005
Aggregate Aggregate Aggregate
(1) (1) (1)
(1) (1) (1)
Fair value Fair value Fair value
Included in calculation Included in calculation Included in calculation
of normal cost of normal cost of normal cost
8% 8% 8%
6% 6% 6%
4% 4% 4%
0% 0% 0%
(1) When the aggregate actuarial cost method is used, unfunded actuarial liabilities are not identified
or separately amortized; therefore, a schedule of funding progress is not required and has not been
NOTE 13. COMMITMENTS AND CONTINGENCIES
Long-Term Agreement to Purchase Water
On July 15, 1976, the Village entered into an agreement with Tri-Southern Utilities Company,
Inc. (the agreement was subsequently assumed by the Town of Jupiter) to purchase water for
the Village's water system for a period of 30 years. Rates for water service are based on
wholesale rates. The Village is billed monthly based upon a contracted minimum usage rate
of 1,500,000 gallons per day. Water purchases were approximately $693,500 for the year
ended September 30, 2006.
Lease Agreements
On December 20, 1994, the Village entered into an Interlocal agreement with Palm Beach
County. Per the agreement, Palm Beach County provided for partial funding, land acquisition
and design and construction of a branch library within Tequesta. Upon completion of the
project, the library was leased to Palm Beach County for 50 years for an annual rent of one
dollar. In the event the Village terminates the lease before the end of 50 years, the Village
must reimburse Palm Beach County a depreciated value using a useful life of 25 years based
on an initial value of $405,000 calculated on a straight-line basis.
-54-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 13. COMMITMENTS AND CONTINGENCIES (Continued)
Contracted Services -Refuse and Recycling Collection
Effective October 1, 1989, the Village entered into a franchise agreement with Nichols
Sanitation, Inc. for curbside solid waste and recycling collection services. On October 14,
1993, the Village amended the franchise agreement. The amendment extended the agreement
for an additional five years commencing October 1, 1994. For consideration of the extension,
the collection rates were reduced. In addition, the Village assessed a 6% franchise fee for
each residential customer, effective October 1, 1994. Nichols Sanitation may also adjust the
curbside and recycling rates beginning October 1, 1995, and each October 1St thereafter based
upon the change in the Consumer Price Index (CPI). Effective October 1, 1999, the existing
agreement was extended through September 30, 2007. Refuse and recycling fees totaled
approximately $264,300 for the year ended September 30, 2006.
Contracted Services -Fire/Emergency Medical Service
Effective October 1, 1993, the Village entered into an Interlocal agreement with Jupiter Inlet
Colony for the Village to provide fire protection/emergency medical services for a fee. For
the year ended September 30, 2006, fire protection fees received from Jupiter Inlet Colony
were $183,332.
Construction Commitments
Significant construction commitments as of September 30, 2006 are as follows:
Estimated Estimated
Expended Cost to Completion
Description to Date Complete Date
Governmental Funds
Capital Projects Fund:
Village Hall Plans (engineering only) $ 173,977 $ 11,500 May-07
Village Hall Construction 2,219,847 490,815 May-07
FEC Project 679,727 75,436 Sep-07
Streetlight Conduit - 98,470 Mar-07
Fuel Tank 13,796 41,390 Mar-07
Skate Park Expansion 15,872 14,862 Mar-07
Enterprise Funds
Water Utility:
Hydraulic Model Update (engineering only) 8,600 6,400 Mar-07
Water Plant Expansion ~ 214,588 2,622,000 Aug-07
R.O. Well #4 1,092,105 119,158` Feb-07
Stormwater Ut~7ity:
Cypress Drive South
19,575 9,100 ~ Jul-07
-55-
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 14. RISK MANAGEMENT
The Village is exposed to various risks of loss related to torts, theft of, damage to and destruction
of assets, errors and omissions, injuries to employees and natural disasters. The Village
purchases commercial insurance to cover the various risks. There was no reduction in insurance
coverage from coverage in the prior year. The Village has opted to retain a small portion of risk
on various lines of coverage and has deductible programs ranging from $250 to $10,000.
Major uninsurable risks include damages to infrastructure assets. The amount of insurance
purchased is based upon replacement cost of the Village's total insured value. Prior to fiscal year
2007/2008, the Village will request a Maximum Potential Loss study to review whether the
insurance purchased provides sufficient coverage of assets during the event of a catastrophic
event striking our area. There were no settled claims which exceeded insurance coverage during
the three prior fiscal years.
The Village is insured under a retrospectively rated policy for workers' compensation coverage
with statutory limits. The plan is written through a trust fund comprised of Florida governmental
entities. Premiums are based upon risk class and remuneration of covered employees adjusted by
an experience modification factor which includes three prior years of claims history. At the end
of each fiscal year, the plan is audited and the Village can either receive a return of premium or
be required to pay additional premium base upon actual versus estimated payroll. Should a
deficit develop in the trust fund after excess insurance recoveries, the Village shall thereafter be
responsible for its individual claims costs.
NOTE 15. JOINT VENTURE
The Village, in conjunction with six other municipalities, organized a consortium to provide mutual
fire and emergency aid. The consortium is known as the Northern Area Mutual Aid Consortium
(NAMAC). During 1999, the consortium purchased equipment and supplies as well as collected
contributions. The consortium does not issue separate financial statements. The Village has not
been obligated to contribute any funds to the consortium since its inception in 1999.
NOTE 16. GASB 45 Accounting and financial Reporting by Employers for Postemployment Benefits
Other Than Pensions
Per GASB 45: "Employers that participate in single-employer or agent multiple-employer defined
benefit OPEB plans (sole and agent employers) are required to measure and disclose an amount
for annual OPEB cost on the accrual basis of accounting. Annual OPEB cost is equal to the
employer's annual required contribution to the plan (ARC), with certain adjustments if the
employer has a net OPEB obligation for past under-or over contributions." In compliance with
Florida Statute 112.0801 Group insurance; participation by retired employees. The Village of
Tequesta offers to retirees and their eligible dependents the same health and hospitalization
insurance coverage as is offered to active employees at a premium cost of no more than the
premium cost applicable to active employees. As allowed by this statute, the cost is paid entirely
by the retired employees. Subsequently, under GASB 45, there is no annual OPEB cost and no
net OPEB obligation to report for fiscal year ending September 30, 2006.
-56-
Page Intentionally Left Blank
REQUIRED SUPPLEMENTAL INFORMATION
VILLAGE OF TEQUESTA, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2006
Revenues:
Ad valorem taxes
Other taxes
Intergovernmental
Charges for services
Intragovernmental
Grants and contributions
Licenses and permits
Interest
Fines and forfeitures
Miscellaneous
Impact fees
Total revenues
Expenditures:
Current:
Public safety
General government
Transportation
Leisure services
Capital outlay
Debt service:
Principal retirement
Interest
Fiscal charges
Total expenditures
Excess of revenues over expenditures
Other financing sources (uses):
Capital lease proceeds
Capital lease purchases
Transfers in
Transfers out
Appropriated fund balance
Total other financing sources (uses)
Budgeted Amounts
Original Final
Variance
with Final
Budget -
Actual Positive
Amounts Ne ative
$ 5,100,850 $ 5,100,850 $ 5,166,754 $ 65,904
1,040,700 1,040,700 1,087,759 47,059
562,200 568,810 679,001 110,191
492,800 492,800 507,702 14,902
262,700 262,700 262,700 -
- 452,610 365,183 (87,427)
555,100 625,100 544,065 (81,035)
77,000 77,000 374,957 297,957
36,300 45,300 34,075 (11,225)
1.57,860 177,983 175,343 (2,640)
29,200 29,200 12,292 (16,908)
8,314,710 8,873,053 9,209,831 336,778
4,817,020 5,042,114 4,736,666 305,448
1,471,680 1,615,663 1,391,612 224,051
607,200 906,433 807,651 98,782
567,900 766,695 692,408 74,287
216,960 413,967 239,195 174,772
281,800 281,800 272,687 9,113
212,600 212,600 207,889 4,71.1.
8,500 8,500 5,847 2,653
8,183,660 9,247,772 8,353,955 893,81.7
131.,050 (374,719) 855,876 1,230,595
- 136,789 136,789 -
- (136,789) - (136,789)
360,100 393,518 393,518 -
(784,019) (1,469,550) (1,469,550) -
292,869 1,450,751 - 1,450,751
(131.,050) 374,719 (939,243) 1,313,962
Net change in fund balance $ - $ - $ (83,367) $ (83,367)
See note to budgetary comparison schedule.
-57-
VILLAGE OF TEQUESTA, FLORIDA
NOTE TO THE BUDGETARY COMPARISON SCHEDULE
SEPTEMBER 30, 2005
NOTE 1. BUDGETS AND BUDGETARY ACCOUNTING
Formal budgetary integration is employed as a management control device during the year for the
General Fund, Special Revenue Fund and Capital Projects Funds. All budgets are legally enacted
through passage of an ordinance.
Budgets are adopted on a basis consistent with accounting principles generally accepted in the
United States. For budgeting purposes, current year encumbrances are not treated as
expenditures.
The Village follows these procedures in establishing the budgetary data reflected in the financial
statements:
1) Prior to September ls`, the Village Manager submits to the Village Council a proposed
operating budget for the fiscal year commencing the following October 1 S`. 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 1 S`, 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. During
the year, supplemental appropriations of approximately $558,000 were made. Appropriations are
legally controlled at the fund level and expenditures may not legally exceed budgeted
appropriations at that level. Appropriations lapse at year end.
-58-
VILLAGE OF TEQUESTA, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF EMPLOYER CONTRIBUTIONS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
Annual
Fiscal Required Village State Percentage
Year Contribution Contribution Contribution Contributed
Firefighters' Pension Fund
2002 $ 59,836 $ 66,261 $ 81,917 247.6%
2003 114,382 76,957 59,123 119.0%
2004 139,739 82,036 56,536 99.2%
2005 145,344 115,072 92,522 142.8%
2006 165,394 102,194 86,714 114.2%
Police Officers' Pension Fund
2002 $ 18,199 $ - $ 81,854 449.8%
2003 38,594 15,906 53,639 180.2%
2004 56,225 20,391 67,950 157.1%
2005 58,489 49,002 65,700 196.1%
2006 106,969 70,169 65,700 1.27.0%
General Employees' Pension Fund
2002 $ 41,607 $ 48,124 N/A 115.7%
2003 64,723 69,869 N/A 108.0%
2004 92,218 74,110 N/A 80.4%
2005 95,949 98,658 N/A ].02.8%
2006 88,512 1.08,015 N/A 1.22.0%
-59-
Page Intentionally Left Blank
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
NONMAJOR GOVERNMENTAL FUNDS
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Special revenue funds are used to account for specific revenues that are legally restricted
to expenditures for particular purposes.
Special Revenue Fund -This fund was established to collect and accumulate certain
revenues from Franchise fees and Occupational Licenses to pay principal and interest on
the 1994 Series Improvement Revenue Refunding Bonds.
Special Law Enforcement Trust Fund -This fund is used to account for forfeitures
received by the Police Department.
Capital Projects Funds
Capital projects funds are used to account for the acquisition and construction of major
capital facilities other than those financed by proprietary and trust funds.
Capital Improvement Fund -This fund is used to account for the maintenance and
upkeep of the Village's general infrastructure (such as roads, bridges, sidewalks and
storm water drainage systems) and streetscape beautification projects.
VILLAGE OF TEQUESTA, FLORIDA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2006
ASSETS
Assets:
Cash and cash equivalents
Investments
Accounts receivable
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Retainage payable
Deferred revenue
Total liabilities
Fund balances:
Reserved for debt service
Unreserved, designated:
Subsequent years expenditures
Unreserved, undesignated
Total fund balances
Total liabilities and fund balances
Total
Special Special Law Capital Nonmajor
Revenue Enforcement Improvement Governmental
Fund Fund Fund Funds
$ 47,226 $ - $ 17 $ 47,243
301,020 19,573 195,672 516,265
41,340 - - 41,340
$ 389,586 $ 19,573 $ 195,689 $ 604,848
$ - $
10,610
10,610
143,370
- $ 56,669 $ 56,669
- - 10,610
- 56,669 67,279
- - 143,370
- - 36,000 36,000
235,606 19,573 103,020 358,199
378,976 19,573 139,020 537,569
$ 389,586 $ 19,573 $ 195,689 $ 604,848
-60-
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
Operating revenues:
Franchise fees
Licenses and permits
Interest
Fines and forfeitures
Total revenues
Operating expenditures:
Public safety
Capital outlay
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances, beginning
Fund balances, ending
Total
Special Special Law Capital Nonmajor
Revenue Enforcement Improvement Governmental
Fund Fund Fund Funds
$ 419,929 $ - $ - $ 419,929
87,456 - - 87,456
17,082 922 - 18,004
- 750 - 750
524,467 1,672 - 526,139
- - 497,141
11.0,000
30,135
140,135
~~~ ~~~
- 4y /,141
497,141
110,000
30,135
~~~ ~~~
1,672 (497,141) (111,137)
60,300 - 406,669 466,969
(360,100) - (133,418) (493,518)
(299,800) - 273,251 (26,549)
84,532 1,672 (223,890) (137,686)
294,444 17,901 362,91.0 675,255
$ 378,976 $ 19,573 $ 139,020 $ 537,569
-61-
VILLAGE OF TEQUESTA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
SPECIAL REVENUE FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2006
Revenues:
Franchise fees
Licenses and permits
Miscellaneous
Total revenues
Operating expenditures:
Debt service:
Principal
Interest
Total expenditures
Excess of revenues over expenditures
Other financing sources:
Transfers in
Proceeds from notes payable
Total other financing sources (uses)
Net change in fund balance
Variance
with
Final
Budget -
Bud~eted Amounts Actual Positive
Ori final Final Amounts Ne alive
$ 358,700 $ 358,700 $ 419,929 $ 61,229
78,300 78,300 87,456 9,156
3,000 3,000 17,082 14,082
440,000 440,000 524,467 84,467
110,000 110,000 110,000 -
30,200 30,200 30,135 65
140,200 140,200 140,135 65
299,800 299,800 384,332 84,532
60,300 60,300 60,300 -
(360,100) (360,100) (360,100) -
(299,800) (299,800) (299,800) -
$ - $ - $ 84,532 $ 84,532
-62-
VILLAGE OF TEQUESTA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
CAPITAL PROJECTS FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2006
Revenues:
State grant
Expenditures:
Public safety
Capital outlay
Total expenditures
Deficiency of revenues over expenditures
Other financing sources and uses:
Transfers in
Appropriated fund balance
Total other financing sources (uses)
Budgeted Amounts Actual
Ori final Final Amounts
Variance
with
Final
Budget -
Positive
Ne ative
$ 470,800 $ 470,800 $ 535,000 $ (64,200)
3,666,600 4,329,653 2,922,839 1,406,814
~ ~~~ inn n ~z~n ~c~ ~ m~ Q~n i nn~ Q i n
(3,195,800) (3,858,853) (2,387,839) 1,342,614
884,019 1,162,881. 1,162,881 -
2,311,781 2,695,972 - (2,695,972)
3,195,800 3,858,853 1,162,881 (2,695,972)
Net change in fund balance $ - $ - $ (1,224,958) $ (1,224,958)
-63-
VILLAGE OF TEQUESTA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
CAPITAL IMPROVEMENT FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2006
Variance
Revenues
Expenditures:
Public safety
Total expenditures
Deficiency of revenues over expenditures
Other financing sources and uses:
Transfers in
Transfers out
Appropriated fund balance
Total other financing sources (uses)
Net change in fund balance
Budgeted Amounts
Ori final Final
$ - $
with
Final
Budget -
Actual Positive
Amounts Ne alive
- $ - $ -
4,000 536,476 497,141 39,335
4,000 536,476 497,141 39,335
(4,000) (536,476) (497,141) 39,335
- 406,669
(1.00,000) (133,418)
104,000 263,225
4,000 536,476
406,669 -
(133,418) -
- (263,225)
273,251 (263,225)
$ - $ - $ (223,890) $ (223,890)
-64-
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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 NET ASSETS
NONMAJOR ENTERPRISE FUNDS
SEPTEMBER 30, 2006
ASSETS
Current assets:
Cash and cash equivalents
Investments
Accounts receivable
Other assets
Total current assets
Non-current assets:
Capital assets not being depreciated
Capital assets being depreciated
Total noncurrent assets
Total assets
LIABILITIES AND NET ASSETS
Current liabilities:
Accounts payable
Accrued liabilities
Current portion of compensated absences
Total current liabilities
Long-term liabilities:
Compensated absences
Total long-term liabilities
Total liabilities
Net assets:
Invested in capital assets
Unrestricted
Total net assets
Total
Nonmajor
Stormwater Refuse & Enterprise
Utility Rec. cy ling Funds
$ 601 $ 1,303 $ 1,904
524,853 164,729 689,582
4,868 2,221 7,089
28 - 28
530,350 168,253 698,603
27,747 - 27,747
1,321,963 - 1,321,963
1,349,71.0 - 1,349,710
1,880,060 168,253 2,048,31.3
3,809 - 3,809
1,203 - 1,203
64 - 64
5,076 - 5,076
256 - 256
L/V - GJV
5,332 - 5,332
1,349,710 - 1,349,71.0
525,018 168,253 693,271
$1,874,728 $168,253 $ 2,042,981
-65-
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
NONMAJOR ENTERPRISE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
Total
Nonmajor
Stormwater Refuse & Enterprise
Utility Recycling Funds
Operating revenues:
Charges for services $ 301,993 $ 283,821 $ 585,814
Total operating revenues 301,993 283,821 585,814
Operating expenses:
Personal services 30,945 - 30,945
Purchased services - 265,587 265,587
Depreciation 71,597 - 71,597
Repairs and maintenance 67,31.0 - 67,310
Management services 8,900 5,300 14,200
Contractual services 2,491 - 2,491
Professional services 13,034 - 13,034
Operating supplies 1,313 - 1,313
Other 3,403 - 3,403
Total operating expenses 198,993 270,887 469,880
Operating income 103,000 12,934 115,934
Non-operating revenues:
Interest income 25,514 ] 1,365 36,879
Connection fees 25,307 - 25,307
Total non-operating revenues 50,821 11,365 62,186
Income before transfers 153,821 24,299 178,120
Transfers out (60,300) - (60,300)
Change in net assets 93,521 24,299 117,820
Net assets, beginning 1,781,207 143,954 1,925,161
Net assets, ending $ 1,874,728 $ l 68,253 $ 2,042,981
-66-
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
Cash flows from operating activities:
Cash received from customers, governments and other funds
Cash paid to suppliers
Cash paid to employees
Net cash provided by (used in) operating activities
Cash flows from non-capital financing activities:
Transfers to other funds
Net cash used in non-capital financing activities
Cash flows from capital and related financing activities:
Acquisition and construction of capital assets
Net cash used in capital and related financing activities
Cash flows from investing activities:
Purchases of investments
Interest received on investments
Net cash provided by (used in) investing activities
Net increase in cash and cash equivalents
Cash and cash equivalents, beginning
Cash and cash equivalents, ending
Adjustments to reconcile operating income to net cash
provided by operating activities:
Operating income
Miscellaneous revenue
Depreciation
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable
Other assets
Increase in accounts payable and accrued liabilities
Net cash provided by (used in) operating activities
Total
Nonmajor
Stormwater Refuse & Enterprise
Utility Recycling Funds
$ 328,037 $ 283,732 $ 611,769
(141,979) (292,174) (434,153)
(30,933) - (30,933)
155,125 (8,442) 146,683
(60,300) - (60,300)
(60,300) - (60,300)
(63,765) - (63,765)
(63,765) - (63,765)
(56,202) (1,971) (58,173)
25,51.4 11,365 36,879
(30,688) 9,394 (21,294)
372 952 1,324
229 351 580
$ 601. $ 1,303 $ 1.,904
$ 103,000 $ 12,934 $ 115,934
25,307 - 25,307
71,597 - 71,597
737 (89) 648
(13) - (13)
(45,503) (21,287) (66,790)
$ 155,125 $ (8,442) $ 146,683
-67-
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FIDUCIARY FUNDS
FIDUCIARY FUNDS
Firefighters' Pension Trust Fund -This fund accounts for the accumulation of
resources and for contributions and benefits of the firefighter employees.
Police Officers' Pension Trust Fund -This fund accounts for the accumulation of
resources and for contributions and benefits of the police employees.
General Employees' Trust Fund -This fund accounts for the accumulation of
resources and for contributions and benefits for the general employees of the Village.
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
SEPTEMBER 30, 2006
ASSETS
Cash and cash equivalents
Investments:
Corporate stocks
Corporate bonds
Government backed assets
Contribution receivable
Accrued interest receivable
Total assets
Police General
Firefighters' Officers' Employees'
Pension Pension Pension
Total
$ 227,959 $ 73,875 $ 52,238 $ 354,072
1,381,718 447,776 418,302 2,247,796
45,150 14,632 101,561 161,343
864,815 280,262 216,952 1,362,029
24,525 4,293 7,986 36,804
1.0,092 3,271 4,703 18,066
2,554,259 824,109 801,742 4,180,110
LIABILITIES AND NET ASSETS
Accounts payable
Total liabilities
5,697 2,364 3,717 1],778
5,697 2,364 3,717 ].1,778
Net assets held in trust for pension benefits $2,548,562 $ 821,745 $ 798,025 $4,168,332
-68-
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
ADDITIONS
Contributions:
Employer
Employee
Insurance premium taxes
Total contributions
Investment income
Net appreciation in fair value of investments
Investment earnings
Less investment expenses
Net investment income
Total additions
DEDUCTIONS
Pension benefits and refunds
Operating expenses
Total deductions
Net increase
Net assets held in trust for pension benefits:
Net assets, beginning
Police General
Firefighters' Officers' Employees'
Pension Pension Pension Total
$ 102,194 $ 70,169 $ 108,015 $ 280,378
62,555 29,117 64,872 156,544
86,714 65,700 - 152,414
251,463 164,986 172,887 589,336
43,636 14,048 46,274 103,958
68,052 20,750 21,747 1.10,549
111,688 34,798 68,021 214,507
25,397 7,634 10,034 43,065
86,291 27,164 57,987 171,442
337,754 1.92,150 230,874 760,778
17,948 23,253 8,346 49,547
11,991 3,663 9,998 25,652
29,939 26,916 18,344 75,1.99
307,815 165,234 212,530 685,579
2,240,747 656,511 585,495 3,482,753
Net assets, ending $ 2,548,562 $ 821,745 $ 798,025 $ 4,168,332
-69-
STATISTICAL SECTION
STATISTICAL SECTION
This part of the Village of Tequesta's comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information says about the Village's overall financial
health
Contents
Financial Trends
Pale
These schedules contain trend information to help the reader understand how the Village's
financial performance and well-being have changed over time. 70
Revenue Capacity
These schedules contain information to help the reader assess the Village's most significant local
revenue source, the property tax. 76
Debt Capacity
These schedules present information to help the reader assess the affordability of the Village's
current levels of outstanding debt and the Village's ability to issue additional debt in the future. 83
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the Village's financial activities take place. 88
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the
information in the Village's financial report relates to the services the Village provides and the
activities it performs. 91
Sources: Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year.
VILLAGE OF TEQUESTA, FLORIDA
NET ASSETS BY COMPONENT
LAST FOUR FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
2003 2004 2005 2006
Governmental activities:
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total governmental activities net assets
$ 2,209,191 $ 921,889 $ 1,788,749 $ 4,515,096
- - - 143,370
4,423,513 4,947,838 6,926,208 5,570,447
$ 6,632,704 $ 5,869,727 $ 8,714,957 $1.0,228,913
Business-type activities:
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total business-type activities net assets
Primary government:
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total governmental activities net assets
$10,561,209 $ 9,602,911 $10,815,151 $ l 1,722,188
317,193 322,818 317,102 396,369
4,843,781 5,901,624 4,604,463 4,867,905
$15,722,183 $15,827,353 $15,736,716 $16,986,462
$12,770,400 $10,524,800 $12,603,900 $16,237,284
317,193 322,818 317,102 539,739
9,267,294 10,849,462 11,530,671 1.0,438,352
$ 22,354,887 $ 21,697,080 $ 24,451,673 $ 27,215,375
Note: The Village began to report accrual information when it implemented GASB Statement 34 in fiscal year
2003.
-70-
VILLAGE OF TEQUESTA, FLORIDA
CHANGES IN NET ASSETS
LAST FOUR F[SCAL YEARS
(ACCRUAL BASS OF ACCOUNTING)
Expenses:
Governmental activities:
General government
Public safety
Transportation
Leisure services
Interest on long-term debt
Total governmental activities expenses
Business-type activities:
Water
S tormwater
Refuse and recycling
Community development
Total business-type activities expenses
Total primary government program expenses
Program revenues:
Governmental activities:
Charges for services:
General government
Public safety
Transportation
Leisure services
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business-type activities:
Charges for services:
Water
Stormwater
Refuse and recycling
Community development
Operating grants and contributions
Capital grants and contributions
Total business-type activities program revenues
Total primary government program revenues
2003 2004 2005 2006
$ 1,299,812 $ 1,105,741 $ 1,361,013 $ 1,402,535
474,134 4,138,374 4,691,063 5,577,243
3,649,803 804,523 656,158 837,44]
385,192 458,659 605,745 756,224
277,855 262,479 248,728 243,871
6,086,796 6,769,776 7,562,707 8,817,314
3,881,752 3,975,766 4,026,027 4,187,257
278,442 155,537 142,788 198,993
229,460 252,933 260,715 270,887
593,105 513,101 - -
4,982,759 4,897,337 4,429,530 4,657,137
$11,069,555 $11,667,113 $11,992,237 $13,474,451
$ 352,901 $ 439,646 $ 260,647 $ 270,137
477,041 538,056 l ,040,427 1,1.21,642
63,438 42,430 4,410 57,261
56,517 43,945 515,438 365,183
- - - 535,000
949,897 ].,064,077 l ,820,922 2,349,223
4,082,459 3,931,562 4,037,674 4,090,268
297,843 303,450 298,188 301,993
242,901 248,252 277,589 283,821
628,068 348,511 - -
- - - 42,471
- - 1.19,944 484,000
5,251,271 4,831,775 4,733,395 5,202,553
$ 6,201,168 $ 5,895,852 $ 6,554,317 $ 7,551,776
Net (expense) revenue:
Governmental activities
Business-type activities
Total primary government net expense
$ (5,136,899) $ (5,705,699) $ (5,741,785) $ (6,468,091)
268,512 (65,562) 303,865 545,416
$ (4,868,387) $ (5,771,261) $ (5,437,920) $ (5,922,675)
-71-
VILLAGE OF TEQUESTA, FLORIDA
CHANGES IN NET ASSETS
(Continued)
LAST FOUR FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
General revenues and other changes in net assets:
Governmental activities:
Taxes:
Property taxes $ 3,392,623 $ 3,781,095 $4,494,713 $ 5,166,754
Other taxes 1,093,877 1.,089,781 1,084,827 1,087,759
Franchise fees based on gross receipts 350,423 372,212 367,778 419,929
Intergovernmental 520,921 558,069 622,457 679,001
Unrestricted Investment earnings 89,532 79,483 214,588 392,961
Miscellaneous revenues 123,740 83,126 641,901 173,362
Gain (loss) on sale of capital assets 6,400 (1,0]2,584) - 1,981
Transfers (7,847) (8,460) 710,151 60,300
Total governmental activities 5,569,669 4,942,722 8,136,415 7,982,047
Business-type activities:
Unrestricted Investment earnings 70,706 75,846 164,163 280,665
Miscellaneous revenues 10,917 82,576 151,487 479,145
Gain on sale of capital assets 681,912 3,850 (710,151) 4,820
Transfers 7,847 8,460 - (60,300)
Totalbusiness-typeactivities 771,382 170,732 (394,501) 704,330
Total primary government 6,341,051 5,113,454 7,741,914 8,686,377
Change in net assets:
Governmental activities 5,569,669 4,942,722 8,136,415 7,982,047
Business-typeactivities 771,382 170,732 (394,501) 704,330
Total primary government $6,341,051 $5,11.3,454 $7,741,914 $8,686,377
Note: The Village began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003.
-72-
VILLAGE OF TEQUESTA, FLORIDA
PROGRAM REVENUES BY FUNCTION/PROGRAM
LAST FOUR FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Function/Program
Governmental activities:
General government
Public safety
Transportation
Leisure services
Subtotal governmental activities
Business-type activities:
Water
Community development
Stormwater
Refuse and recycling
Subtotal business-type activities
Total primary government program revenues
Program Revenues
2003 2004 2005 2006
$ 352,902 $ 439,646
533,_558 582,001
- 42,430
63,438 -
949,898 1,064,077
4,082,459 3,931,562
628,068 348,511
297,843 303,450
242,901. 248,252
5,251,271 4,831,775
$ 6,201,169 $ 5,895,852
$ 260,647
1,058,235
497,630
4,410
1,820,922
4,1.57,618
298,188
277,589
4,733,395
$ 6,554,317
$ 605,137
1,145,871
305,691
292,524
2,349,223
4,616,739
301,993
283,821
5,202,553
$7,551,776
Note: In fiscal year 2005 Community Development was closed as a business-type function/program and all
related activates is now accounted for as a governmental program activity.
Note: The Village began to report accrual information when it implemented GASB Statement 34 in fiscal year
2003.
-73-
VILLAGE OF TEQUESTA, FLORIDA
FUND BALANCES, GOVERNMENTAL FUNDS
LAST FOUR FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
2003 2004 2005 2006
General fund:
Reserved
Unreserved
Total general fund
All other governmental funds:
Reserved
Unreserved, reported in:
Capital projects funds
Special revenue funds
$ 43,745 $ 50,509 $ 56,759 $ 176,410
~ inn n~~ ~ ~i4 ~Qn ~ non nnQ ~ ~~i inn
3,Z14,15I 3,765,SSy 3,451,167 3,3y7,50U
155,645 341,722 823,675 143,370
1,069,670 889,395 2,519,033 1,599,416
237,858 15,692 17,901 255,179
$1,463,173 $1,246,809 $3,360,609 $ 1,997,965
-74-
VILLAGE OF TEQUESTA, FLORIDA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST FOUR FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
2003 2004 2005 2006
Revenues:
Taxes $ 4,836,923 $ 5,243,088 $ 5,579,540 $ 6,254,513
Intergovernmental 575,986 596,947 622,457 679,001
Charges for services 362,663 477,513 490,995 507,702
Intragovernmental 337,490 341,700 254,898 262,700
Franchise fees based on gross receipts - - 367,778 419,929
Grants 56,517 43,945 515,438 900,183
Licenses and permits 103,564 93,601. 549,884 631,521
Interest 83,166 79,483 214,588 392,961
Fines and forfeitures 58,467 57,41.3 352,254 34,825
Miscellaneous 80,494 83,126 289,647 175,343
Impact fees 32,143 11,028 9,707 12,292
Total revenues 6,527,413 7,027,844 9,247,186 10,270,970
Expenditures:
Current:
General government 1,289,050 1,225,550 1,314,270 ],391,612
Public safely 3,443,961 3,918,798 4,351,936 5,233,807
Transportation 440,263 776,273 625,014 807,651
Leisure services 347,975 384,980 523,439 692,408
Capital outlay 1,439,607 368,303 870,453 3,162,034
Debt service:
Principal 470,221 319,280 336,101 382,687
Interest 277,855 262,479 255,672 243,871
Total expenditures 7,708,932 7,255,663 8,276,885 11,914,070
Excess (deficiency) of revenues
over expenditures (1,181,519) (227,819) 970,301 (1,643,100)
Other financing sources (uses):
Transfers in 464,954 326,010 3,771,617 2,023,368
Transfers-out (472,801) (334,470) (3,068,840) (1,963,068)
Other proceeds - 574,624 152,999 136,789
Total other financing sources (uses) (7,847) 566,164 855,776 197,089
Net change in fund balances $(1,189,366) $ 338,345 $1,826,077 $(1,446,011)
Debt service as a percentage of
noncapital expenditures 11.93% 8.45% 7.99% 7.1.6%
-75-
VILLAGE OF TEQUESTA, FLORIDA
TAX REVENUES BY SOURCE, GOVERNMENTAL FUNDS
LAST FOUR FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal
Year PropertX Sales & Use Franchise Total
2003 $ 3,392,623 $ 1,093,877 $ 350,423 $ 4,836,923
2004 3,781,095 1,089,781 372,212 5,243,088
2005 4,494,713 1,084,827 367,778 5,947,318
2006 5,166,754 1,087,759 419,929 6,674,442
Change:
2003-2006 1,774,131 (6,118) 69,506 1,837,519
2003-2006 52.29% -0.56% 19.83% 37.99%
-76-
VILLAGE OF TEQUESTA, FLORIDA
REVENUE FROM SALES & USE TAXES BY CATEGORY
LAST FOUR FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Utility taxes:
Electric
Water
Propane
Communications services tax
Gas taxes:
Local gas tax 6 cents
Local gas tax 1-5 cent
2003 2004 2005 2006
$ 372,565 $ 350,854 $ 363,807 $ 363,620
158,738 177,954 156,890 169,302
23,904 24,329 30,587 37,557
351,680 340,996 335,593 329,248
127,087 1.33,272 135,948 129,668
59,903 62,376 62,000 58,364
$1,093,877 $1,089,781 $1,084,827 $1,087,759
-77-
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VILLAGE OF TEQUESTA, FLORIDA
COMPUTATION OF LEGAL DEBT MARGIN
SEPTEMBER 30, 2006
Total assessed value $ 981,627,378
Legal debt margin:
Debt limitation - 10% of total assessed value 98,162,738
Total bonded debt outstanding $380,000
Less amount available in debt service fund (b) 378,977
Total debt applicable to limitation 1,023
Legal debt margin $ 98,161,714
(a) PBC Property Appraiser's Office, Form DR-420 'Certificate of Taxable Value'
(b) IBR-Special Revenue -Unreserved Fund Balance at 9/30/2005
-85-
VILLAGE OF TEQUESTA, FLORIDA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
SEPTEMBER 30, 2006
Governmental. Unit
Estimate
Net Estimate Share of
Bonded Percentage Direct and
Debt Applicable to Overlapping
Outstanding Tequesta (a) Debt
Debt repaid with property taxes
Palm Beach County
P.B.C. School Board
$336,020,000 0.61 °Io $ 2,046,226
97,990,000 0.61.% 596,719
Subtotal, overlapping debt
Village of Tequesta direct debt
Total direct and overlapping debt
2,642,945
5.19R_71
$ 7,841,658
Sources: Assessed value date used to estimate applicable percentages provided by each governmental unit.
Notes: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the
Village of Tequesta. This schedule estimates the portion of the outstanding debt of those overlapping
governments that is borne by the residents and business of the Village of Tequesta. This process recognizes
that, when considering the Village's ability to issue and repay long-term debt, the entire debt burden borne by
the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a
resident -and therefore responsible for repaying the debt - of each overlapping government.
(a) For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable
assessed property values. Applicable percentages were estimated by determining the portion of another
governmental unit's taxable assessed value that is within the Village's boundaries and dividing it by each unit's
total taxable assessed value.
-86-
VILLAGE OF TEQUESTA, FLORIDA
PLEDGED-REVENUE COVERAGE
LAST TEN FISCAL YEARS
Less: Net
Fiscal Pledged Operating Available Debt Service
Year Revenues (a) Expenses Revenue Principal Interest Coverage
1997 $ 411.,129 $141,844 $ 269,285 $ 65,000 $ 76,844 1.90
1998 436,385 142,866 293,519 70,000 72,866 2.05
1999 455,063 143,370 311,693 75,000 68,370 2.17
2000 490,179 143,960 346,219 80,000 63,960 2.40
2001 498,959 139,095 359,864 80,000 59,095 2.59
2002 441,409 144,461 296,948 90,000 54,461 2.06
2003 448,946 143,585 305,361 95,000 48,585 2.13
2004 464,973 142,678 322,295 100,000 42,678 2.26
2005 459,873 141,490 318,383 105,000 36,490 2.25
2006 524,468 140,135 384,333 110,000 30,135 2.74
Note: Details regarding the Village's outstanding debt can be found in the notes to the financial statements.
Operating expenses do not include interest, depreciation or amortization expenses.
(a) Pledged revenues include franchise fees, licenses and permits from Fund 101.
-87-
VILLAGE OF TEQUESTA, FLORIDA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Per
Capita
Fiscal Population Personal Personal Median Unemployment
Year ~ Income Income (4) A~ Rate 3
1997 4686 $ - $ - 0.0 3.6%
1998 5036 - - 0.0 4.7%
1999 5122 - - 0.0 5.7%
2000 5273 184,417,902 34,974 47.5 5.2%
2001 5307 185,607,018 34,974 47.5 5.5%
2002 5327 186,306,498 34,974 47.5 5.1%
2003 5333 186,516,342 34,974 47.5 6.2%
2004 5648 197,533,152 34,974 47.5 5.7%
2005 5686 198,862,164 34,974 47.5 3.1%
2006 5702 199,421,748 34,974 47.5 3.7%
Note: Principal Employers -The Village of Tequesta has no discernable level of industries. "Workforce
Housing Needs Assessment: Municipal Profiles", prepared by the Metropolitan Center, Florida International
University.
Sources:
(I) Bureau of Economic and Business research, University of Florida.
(2) 2000 U.S. Census Data, adjusted for inflation by MuniNetGuide.com
(3) Agency for Workforce Innovation (AWI).
(September to September -local area by County -not seasonally adjusted)
(4) Wikipedia.org
-88-
VILLAGE OF TEQUESTA, FLORIDA
FULL-TIME EQUIVALENT VILLAGE GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Full-time Equivalent Employees as of September 30
Function/Program 1.997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Proposed
Governmental activities:
General government
Public safety
Transportation
Leisure services
Community development (a)
Total governmental activities
Business-type activities:
Water
Stormwater
Community development
Total business-type activities
Total primary government
- - - - - 8.0 8.5 12.0 1.1.5 1.0.5
- - - - - 45.5 51.0 45.0 42.0 46.0
- - - - - 2.0 2.5 - - 3.0
- - - - - 1.5 2.5 2.0 2.0 3.0
- - - - - 3.0 2.5 3.0 -
- - - - - 57.0 67.5 61.5 58.5 62.5
- - - - - 14.0 12.5 14.5 14.0 15.0
- - - - - 0.5 - - - 1.0
- - - - - 3.5 3.0 - - -
- - - - - 18.0 15.5 14.5 14.0 16.0
75.0 83.0 76.0 72.5 78.5
Source: Village of Tequesta Budget Reports
Notes: A full-time employee is scheduled to work 2,088 hours per year (including vacation and sick leave).
Full-time-equivalent employment is calculated by dividing total labor hours by 2,088.
(a) Community Development activities (planning, building and code enforcement) were accounted for in an
enterprise (business-type activity) fund until fiscal year 2005 when the fund was closed. Planning, building
and code enforcement activities are currently accounted for in the General Fund.
-89-
VILLAGE Or TEQUESTA, FLORIDA
OPERATING INDICATORS BY FUNCTION/PROGRAM
CURRENT FISCAL YEAR
Governmental activities:
General government
Registered voters
Public safety:
Police department
No. of full-time certified police officers
No. of total calls received
No. of arrests
No. of parking violations
No. of incident numbers issued
Fire department:
No. of full-time certified firefighters
No. of emergency responses
No. of transports
No. of fires extinguished
No. of inspections
Building, zoning:
No. of building permits issued
No. of building inspections conducted
Transportation:
Miles of street lane miles
Leisure services:
No. of parks
No. of park acreage
Business-type activities:
Water:
No. of customers
Average daily consumption
Miles of water mains
2006
4,007
1
16
3,300
199
162
81.7
16
1.,254
622
632
326
1,049
2,214
48
3
48
4,612
2.782 mg
50
-90-
VILLAGE OF TEQUESTA, FLORIDA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
CURRENT FISCAL YEAR
Function/Program: 2006
Governmental activities:
General government:
Municipal center -
Public safety -
Police:
No. of stations 1
No. of patrol units 12
Fire:
No. of stations 1
No. of ambulances 2
No. of pumpers 3
Transportation:
Miles of street lane miles 48
Leisure services:
No. of parks 3
No. of park acreage 48
No. of playgrounds 3
No. of baseball/softball diamonds 3
No. of skate-parks 1
Business-type activities:
Water:
Miles of water mains 50
No. of fire hydrants 550
Storage capacity (thousands of gallons) 3,250
-91-
COMP~,IANCE SECTION
Cohen
~Ioltz
Accountants Advisors
Report of Independent Certified Public Accountants on Internal Control over
Financial Reporting and on Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance with Gover~zmentAuditin~ Sta~zdards
Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
We have audited the financial statements of the governmental activities, the business-type activities,
each major fund, and the aggregate other remaining fund information of the Village of Tequesta,
Florida (the Village) as of and for the fiscal year ended September 30, ?006, which collectively
comprise the Village's basic financial statements, and have issued our report thereon dated February
16, 2007. We conducted our audit in accordance with generally accepted auditing standards and the
standards applicable to financial audits contained in Govenim.ent Auditing Standards, issued by the
Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Village's internal control over financial
reporting in order to determine our auditing procedures for the purpose of expressing our opinion on
the basic financial statements and not to provide assurance on the internal control over financial
reporting. Our consideration of the internal control over financial reporting would not necessarily
disclose all matters in the internal control over financial reporting that might be material weaknesses.
A material weakness is a reportable condition in which the design or operation of one or more of the
internal control components does not reduce to a relatively low level the risk Chat misstatements caused
by error or fraud in amounts that would be material in relation to the financial statementsbeing audited
may occur and not be detected within a timely period by employees in the normal course of performing
their assigned functions. We noted no matters involving the internal control over financial reporting
and its operation that we consider to be material weaknesses.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Village's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations
and contracts, grant agreements and other matters, non-compliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit and, accordingly, we do not express
such an opinion. The results of our tests disclosed no instances of noncompliance that are required to
be reported under Governn~entAuditing Standards.
-92-
~a
Rachlin Cohen & Holtz LLP
One Southeast Thirtl 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 I A M I ^ F O 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
Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
Page Two
This report is intended for the information and use of the Mayor, Village Council, management and
regulatory bodies and is not intended to be and should not be used by anyone other than the specified
parties.
~~~~ ~' ~ ~~~ L~ P
West Palm Beach, Florida
February 16, 2007
-93-
Cohen
Holtz
Accountants Advisors
CO~JeYI
Holtz
Accountants Advisors
Management Letter in Accordance with the Rules of the Auditor General of the State of Florida
Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
We have audited the basic financial statements of the governmental activities, the business-type activities
and each major fund and the aggregate remaining fund information of the Village of Tequesta, Florida
(the Village) as of and for the year ended September 30, 2006, which collectively comprise the Village's
basic financial statements, and have issued our report thereon dated February 16, 2007.
We conducted our audit in accordance with auditing standards generally accepted in the United States; the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States and Chapter 10.550, Rules of the Auditor General. We have
issued our Report of Independent Certified Public Accountants on Internal Control over Financial
Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements, Report of
Independent Certified Public Accountants on Compliance and Internal Control over Compliance
Applicable to each Major State Financial Assistance Project, and the Schedule of Findings and
Questioned Costs. Disclosures in those reports and schedule, which are dated February 16, 2007, should
be considered in conjunction with this manaeement letter.
Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the
Auditor General, which govern the conduct of local governmental entity audits performed in the State of
Florida and require that certain items be addressed in this letter.
The Rules of the Auditor General (Section ]0.554(1)(h)l.) require that we address in the management
letter, if not already addressed in the auditor's report on compliance and internal controls or schedule of
findings and questioned costs, whether or not recommendations made in the preceding annual financial
report have been followed. The recommendations made in the preceding annual financial audit report
have been addressed.
As required by the Rules of the Auditor General (Section 10.554(1)(h)2.), the scope of our audit included
a review of the provisions of Section 218.415., Florida Statutes, regarding the investment of public funds.
In connection with our audit, we determined that the Village complied with Section 218.415, Florida
Statutes.
The Rules of the Auditor General (Section ] 0.554(1)(h)3.) require that we address in the management
letter any findings and recommendations to improve financial management, accounting procedures, and
internal controls.
-94-
Rachlin Cohen & Holtz LLP
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 I A M I ^ F O 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
Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
Page Two
The Rules of the Auditor General (Section 10.554(1)(h)4.) require disclosure in the management letter of
the following matters if not already addressed in the auditor's reports on compliance and internal controls
or schedule of findings and questioned costs and are not clearly inconsequential: (1) violations of laws,
rules, regulations, and contractual provisions that have occurred, or are likely to have occurred; (2)
improper or illegal expenditures; (3) improper or inadequate accounting procedures (e. g., the omission
of required disclosures from the financial statements); (4) failures to properly record financial
transactions; and (5) other inaccuracies, shortages, defalcations, and instances of fraud discovered by, or
that come to the attention of the auditor. Our audit found no matters that were required to be disclosed.
The Rules of the Auditor General (Section 10.554(1)(h)5.) also require that the name or official title and
legal authority for the primary government and each component unit of the reporting entity be disclosed
in the management letter, unless disclosed in the notes to the financial statements. The Village was
incorporated in 1957 By Laws of Florida 57-1915. There are no component units.
As required by the Rules of the Auditor General (Section 10.554(1)(h)6a.), astatement must be included
as to whether or not the local government entity has met one or more of the conditions described in
Section 218.503(1), Florida Statutes. In connection with our audit, we determined that the Village did not
meet any of the conditions described in Section 218.503(1), Florida Statutes.
As required by the Rules of the Auditor General (Section 10.554(1)(h)6.b.), we determined that the annual
financial report for the Village for the fiscal year ended September 30, 2006, filed with the Florida
Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with
the annual financial audit report for the fiscal year ended September 30, 2006.
As required by the Rules of the Auditor General (Sections 10.554(h)6.c. and 10.556(7), we applied
financial assessment procedures. It is management's responsibility to monitor the entity's financial
condition, and our financial condition assessment was based in part on representations made by
management and the review of financial information provided by same. The assessment was done as of
the fiscal year end. There were no findings that identified deteriorating financial conditions.
This report is intended solely for the information and use of the Mayor, Village Council, management and
the Auditor General of the State of Florida and is not intended to be and should not be used by anyone
other than these specified parties.
~f~~~
West Palm Beach, Florida
February 16, 2007
-95-
Cohen
Holtz
Accountants Advisors
Cohen
Holtz
Accountants Advisors
Report of Independent Certified Public Accountants on Compliance and Internal Control over
Compliance Applicable to Each Major State Financial Assistance Project
Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
Compliance
We have audited the compliance of the Village of Tequesta, Florida (the Village), with the types of
compliance requirements described in the Executive Office of the Governor's State Projects Compliance
Supplement, that are applicable to each of its major state financial assistance projects for the fiscal year
ended September 30, 2006. The Village's major state financial assistance projects are identified in the
summary of auditor's results section of the accompanying schedule of findings and questioned costs.
Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its state
financial assistance projects is the responsibility of the Village's management. Our responsibility is to
express an opinion on the Village's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States; the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States and Chapter 10.50, Rules of the Auditor General.
Those standards and Chapter 10.550, Rules of the Auditor General require that we plan and perform the
audit to obtain reasonable assurance about whether noncompliance with the types of compliance
requirements referred to above that could have direct and material effect on a major state financial
assistance project occurred. An audit includes examining, on a test basis, evidence about the Village's
compliance with those requirements and performing such other procedures, as we considered necessary in
the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does
not provide a legal determination on the Village's compliance with those requirements.
In our opinion, the Village complied, in all material respects, with the requirements referred to above
that are applicable to each of its major state financial assistance projects for the fiscal year ended
September 30, ?006.
Internal Control over Com lip ance
The management of the Village is responsible for establishing and maintaining effective internal control
over compliance with requirements of laws, regulations, contracts and grants applicable to state financial
assistance projects. In planning and performing our audit, we considered the Village's internal control
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Rachlin Cohen & Holtz LLP
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 I A M I ^ F O 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
Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
Page Two
over compliance with requirements that could have a direct and material effect on major state financial
assistance projects in order to determine our auditing procedures for the purpose of expressing our
opinion on compliance and to test and report on internal control over compliance in accordance with
Chapter ]0.550, Rules of the Auditor General
Our consideration of the internal control over compliance would not necessarily disclose all matters in the
internal control that might be material weaknesses. A material weakness is a reportable condition in
which the design or operation of one or more of the internal control components does not reduce to a
relatively low level the risk that noncompliance with applicable requirements of laws, regulations,
contracts, and grants caused by error or fraud that would be material in relation to a major state financial
assistance projects being audited may occur and not be detected within a timely period by employees in
the normal course of performing their assigned functions. We noted no matters involving the internal
control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of the Mayor, Village Council, management,
and specific legislative or regulatory bodies and state awarding agencies and pass-through entities, and is
not intended to be and should not be used by anyone other than these specified parties.
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West Palm Beach, Florida
February 16, ?007
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Cohen
Holtz
Accountants Advisors
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VILLAGE OF TEQUESTA, FLORIDA
NOTE TO THE SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
FISCAL YEAR ENDED SEPTEMBER 30, 2006
NOTE 1. BASIS OF PRESENTATION
The accompanying schedule of expenditures of state financial assistance projects includes the
state grant activity of the Village and is presented on the modified accrual basis of accounting.
The information in this schedule is presented in accordance with the requirements of the Florida
Single Audit Act and Chapter 10.550, Rules of the Auditor General. Therefore, some amounts
presented in this schedule may differ from amounts presented in, or used in the preparation of, the
basic financial statements.
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VILLAGE OF TEQUESTA, FLORIDA
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
PRIOR YEAR FINDINGS AND STATUS
There were no prior year findings.
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VILLAGE OF TEQUESTA, FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
SECTION I -SUMMARY OF AUDITOR'S RESULTS
Financial Statements
Type of auditor's report issued: Unqualified Opinion
Internal control over financial reporting:
Material weakness(es) identified? Yes X No
Reportable condition(s) identified not considered to be
material weakness? Yes X No
Non-compliance material to financial statements noted? Yes X No
State Financial Assistance Projects
Internal control over major State Financial Assistance Projects:
Material weakness(es) identified? Yes X No
Reportable condition(s) identified not considered to be
material weakness? Yes X No
Type of auditor's report issued on compliance for major
State Financial Assistance Projects: Unqualified Opinion
Any audit findings disclosed that are required to be reported in
accordance with Chapter 10.550, Rules of the Auditor General? Yes X No
Identification of major state financial assistance projects:
State Projects State CSFA No.
Florida Department of Environmental Protection 37.039
Dollar threshold used to distinguish between Type A and
Type B programs: State $221,597
SECTION II -FINANCIAL STATEMENT FINDINGS
None.
SECTION III -STATE FINANCIAL ASSISTANCE FINDINGS AND QUESTIONED COSTS
None.
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