ML19309E174

Annual Financial Rept for Yr Ending Sept 1978.Sebring Util Commission Financial Statements Encl

ML19309E174
Person / Time
Site:	Crystal River
Issue date:	06/15/1979
From:	TALLAHASSEE, FL
To:
Shared Package
ML19309E142	List: ML19309E140 ML19309E148 ML19309E151 ML19309E155 ML19309E160 ML19309E165 ML19309E172 ML19309E174
References
NUDOCS 8004180503
Download: ML19309E174 (129)

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t lI CITY OF OCALA, FLORIDA ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 1978 I

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u CITY OF OCALA, FLORIDA ANNUAL FINANCIAL REPORT

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u FOR THE YEAR ENDED SEPTEMEER 30, 1978

- TABLE OF CONTENTS Pages E Report of Independent Certified Public Accountants 1- 2

[ COMBINED OVERVIEW FINANCIAL STATEMENTS Combined Balance Sheet - All Fund

{ Types and Account Groups 4- 5 Combined Statement of Revenues, Expen-ditures, Encumbrances and Changes in L Fund Balance - Governmental Fund Types and Expendable Trust Funds 6- 7 E Combined Statement of Operations and Changes in Unreserved Retained Earnings or Reserved Fund Balance - All Proprie-F tary Fund Types and Nonexpendable L Trust Fund 8 INDIVIDUAL FUND AND COMBINING FINANCIAL b STATEFENTS BY FUND TYPE r~

GOVERNMENTAL FUND TYPES l

General Fund l Balance Sheet 10 l

Statement of Changes in Unreserved I

l and Reserved Fund Balance Statement of Revenues Statement of Expenditures and 11 12 Encumbrances 13 l

Special Revenue Funds Combining Balance Sheet 14 - 15 i Combining Statement of Changes in i

Unreserved and Reserved Fund I

l Balance Combining Statement of Revenues, Expenditures and Encumbrances 16 - 17 18 - 19 I

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Pages Debt Service Funds l Combining Balance Sheet 20 - 21 I Combining Statement of Revenues, Expenditures and Changes in Fund Balance 22 - 23 Capital Proj ect Funds l Combining Balance Sheet 24 - 25 I

j Combining Statement of Revenues, Expenditures and Changes in Fund Balance 26 Special Assessment Fund Balance Sheet 28 Statement of Revenues, Expenditures and Changes in Fund Balance 29 PROPRIETARY FUND TYPES Enterprise Funds l

I Electric and Bulk Power Supply Revenue Funds I Consolidating Balance Sheet Consolidating Statement of Changes in Reserved Retained Earnings 30 32 - 33 I Consolidating Statement of Operations and Changes in Unreserved Retained Earnings '

34 Consolidating Statement of Changes in Financial Position 35 Uater and Sewer Fund Balance Sheet 36 Statement of Changes in Reserved Retained Earnings 38 - 39 Statement of Operations and Changes in Unreserved Retained Earnings 40 Statement of Changes in Financial Position 41 Internal Service Fund Balance Sheet 42 Statement of Changes in Unreserved and Reserved Retained Earnings 43

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I Pages Internal Service Fund (Cont'd)

Statement of Operations 44 I Statement of Changes in Financial Position 45 FIDUCIARY FUND TYPES Trust Funds I Combining Balance Sheet Combining Statement of Changes in Unreserved and Reserved Fund Balance -

46 Expendable Trust Funds I Statement of Operations and Changes in Fund Balance - Nonexpend-48 - 49 able Consolidated Retirement Fund 50 Combining Statement of Revenues, Expenditures and Encumbrances -

Expendable Trust Funds 51 Statement of Changes in Financial Position - Nonexpendable Consolidated Retirement Fund 52 ACCOUNT GROUPS Statement of Changes in General Fixed Assets 54 - 55 Statement of Changes in General Long-Term Debt 56 - 57 NOTES TO FINANCIAL STATEMENTS 58 - 81 I

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r' e 1100 PAN AMERICAN BANK BUILDING L TICe east arrice sox 2988 "0"%' "*^ '

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]/ /ateihouse&00 Certified Putlic Accottntattts June 15, 1979 I

L Honorable City Council City of Ocala, Florida r

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We have examined the financial statements of the various funds and account groups of the City of Ocala,

{ Florida for the year ended September 30, 1978, listed in the foregoing table of contents. Except as described in the following paragraph, our examination was made in accordance with generally accepted auditing standards, and accordingly

[ included such tests of the accounting records and such othcr auditing procedures as we considered necessary in the circumstances.

The City has not maintained detail records for a majority of the property and equipment of the Electric Revenue Fund. Since the amounts recorded in this fund as

{ property and equipment, accumulated depreciation and depre-ciation expense enter materially into the determination of financial position, .isults of operations and changes in

[ financial position, we do not express an opinion on the financial statements of the Electric Revenue Fund (or con-solidated amounts) included in the accompanying financial

{ statements.

As described in Note 4, the market value of investments E.-

of the Consolidated Retirement Fund is significantly less than cost. The carrying value of these investments has not been adjusted since City officials believe the decline in market value is of a temporary nature and therefore is not a '

[ permanent impairment of the value of such securities.

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I I In our opinion, subject to the effects on the financial statements of the Consolidated Retirement Fund of such adj ustment s , if any, as might have been required had the I outcome of the uncertainty referred to in the third paragraph of this report been known, the financial statements listed I in the foregoing table of contents, except for the financial statements of the Electric Revenue Fund referred to in the second paragraph of this report, present fairly the financial position of the various funds and account groups of the City '

I of Ocala, Florida at September 30, 1978, and the results of operations of such funds and the changes in financial position I of the proprietary funds (including consolidated retirement trust fund) for the year then ended, in conformity with generally accepted accounting principles which, except for the change, with which we concur, in the method of accounting for capital grants as described in Note 3 to the financial statements, have been applied on a basis consistent with that of the preceding year.

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I CITY OF OCA1A, FLORIDA CCMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 1978 Governmental Fund Types Special Debt Capital Special General Revenue Service Projects Assessment Assets Cash $141,011 $ 95,694 $ 115,482 $ 277,202 '

Investments $3,300,000 739,909 1,050,000 967,000 Accounts receivable 73,560 Accrued unbilled revenues Oue from other governments 31,699 190,000 514,508 Inventories Special assessments receivable 829,296 Accrued interest and dividends receivable 18,192 16,186 8,946 37,029 Due from other funds 784,014 40,915 164,879 247,056 Other assets 3,768 32,977 1,820 Prepaid expenses Deposit with State of Florida 81,236 Restricted assets Property, plant and equipment Issuance expenses on long-term debt Amount available and to be provided for payment of general long-term debt Total assets $4.179.534 $177.710 $1.146.017 St.953.A15 $2.359.403 Liabilities, Eacumbrances and Fund Balance Bank overdraft $2,833,391 $ 15.114 $ 6,477 Accounts payable 100,461 11,072 6,882 Contracts payable 400.176 Retainage payable 186,706 Deferred revenue 83,895 5,073 Current liabilities payable from restricted assets Customer deposits Due to other funds 75,656 46,684 $ 47,385 673,569 $ 94,153 Notes and bonds payable 690,000 Total liabilities 3,009,508 156,765 47,385 1,278,883 784,153 Encumbrances outstanding 184,3 2,470 Fund equity:

Investment in general fixed assets Contributed capital Retained earnings:

Reserved Unreserved Total retained earnings Fund balance (deficit):

Reserved 692,960 36,066 ,

j Unreserved 292,290 (22.591) 1,149,532 574,932 1,575,250 Total fund balance 985,250 13,475 1,149,532 574,932 1,575,250 Total fund equity 985,250 13,475 1,149,532 574,932 1,575,250 total liabilities, encum-l brances and fund equity $4.170.534 $17?.710 $1.196.917 $1.853.815 $2.359.403 I

l See accompau . .g notes to financial statements.

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Proprietary Fund Types Fiduciary Fund Type Enterprise Funds Account Groups Consolidated Electric and k'a t e r Retirement Oeneral General Total Bulk Power and Internal and Expend- Fixed Long-Term memorandum Supply Sewer Service able Trusts Assets Debt only)

S 2.838,637 $ 503.190 $ 94,138 $ 289,469 S 4,354,823 5,002,761 11,059,670 2,381,660 2,455,220 1,605,873 1,605,873 736,207 1,011,834 56,829 L 1,063,663 829,296 68,680 149,033 88,695 890,870 50,515 2,266.944 10,171 668 49,404 61.714 14,107 1,904 77,725 d1,236 7.052,946 1,063,218 8.116,164 21,930,862 16,255,263 322,275 323,166,394 61,674,794 293.627 293,627

$6,498,500 6,498,500 537.265.948 $17 002.779 91.?00 355 $5.411.425 }23.166.304 $6.444.500 g 317.179 S 1,774,138 F 1,945,631 S 55,439 5 12,759 $ 1,104

$ 4,629,120 2.133,348 400,176 186.706 88,968 2,308,386 333.239 3,141,625 I

852,260 852,260 370 17,208 44 955,069 18,128,475 2,930,000 $6.448,500 28,246,975 25,009,260 3.835,886 12,803 1,104 6,498,500 40,634.247 39,347 226,593

$23,166,394 23,166,394 2,182,460 1,110,000 1,106,405 4,398,865 8,504.411 790,658 133,500 9,428,569 3,752,177 11,093.774 53,552 l 14,899,503 l 12.256,588 11,884,432 187,052 24,328,072

'.,117,607 4,846,633 146,962 3,716,375 j 4,264,569 8,563,008 12,256,588 14.066,892 1,297,052 5,370,974 23,166,394 60,456,330 137.265.948 S17.002.778 St.309.855 $5.411.425 $23.166.394 $6. 98.500 $101.317 170 l

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CITY OF OCALA, FLORIDA COMBINED STATEPINT OF PIVENUES , EXPENDITURES, ENCLHBRANCES AND CHANCES IN FUND BAIANCE COVERNMENTAL FUND TYPES AND EXPENDABLE TRUSTS FOR THE YEAR ENDED SEPTEMBER 30, 1978 ll Covernmental Fund Types Special Debt Capital General Revenue Service Projects Sources of financial rescurces:-

Revenues:

Property taxes $ 1,919,802 S 41,426 Intergovernmental revenues 1,526,204 238,650 $1,352,008 Licenses and permits 97,814 173,690 Charges for services 1,685,029 18,968 Special assessments levied Use of City property and investment income 212,759 S 73,059 99,068 Fines and forfeitures 205,843 7.379 other income 127,932 16,965 1,275 Total revenue 5,775,383 497,078 74,334 1,951,076 Other sources:

Transfers from other funds 4,267,840 189,643 766,686 144,153 Proceeds from long-term debt 88,500 Total sources of financial resources 10,131,723 686,721 841,020 2,095,229 Uses of financial resources -

Expenditures:-

Genera'. government 920,341 Public safety 2,647,639 Public works 1,660,146 Culture and recreation 601,847 446,563 Cost of services provided 1,333,108

ondepartmental appropriations 242,176 Other expenditures 53,239 2,208 Capital outlay 883.743 40,202 3,065,690 Debt service:

Principal retirement 35,000 421,000 Interest and fiscal fees 1,755 349,886 Total expenditures 8,378,994 488,973 770,886 3,065,690 Other uses:

Transfers to other funds 923,334 222,325 50,000 Total uses of financial resources 9,302,328 711,298 770,886 3.115,690 Increase (decrease) in fund balance during the year 829,395 (24,577) 70,134 (1,020,461)

Fund balance at October 1, 1977 165,379 36,236 1,079.398 2,020,869 Transfer of fund deficit from local public works municipal improvement fund (9,524) 9,524 Contribution to internal service fund (435,000)

Increase in reserve for restricted time deposit 1,816 Fund balance at September 30, 1978 $ 9A5.250 $ 13.475 $1.144.532 9 574.032 Il l

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-See accompanying notes to financial statements.

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I Fiduciary Fund Type Total Special Expendable (Memorandum i Assessment Trusts only) 1 i

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$ 1,961,228

$345,194 3,962,056 -

271,504 l 1,703,997  !

$ 221,548 221,548 I 110,253 1,063 332,864 4.630 349,824 495,139 213.222 151,865 8,980,559 i

5,368,322 i 88,500 l 332,864 349,824 14,437,381 920,341 ,

2,647,639 ,

1,660,146  ;

1,043,410 i 1,333,108 l 242,176 l 10.518 65,965 i I

3.989,635 l 456,000 31,818 383,459 l

42,336 12,746,879 172,994 305,874 1,674,527 I

215.330 305,874 14.421,406 117,534 43,950 15,975 1,457,716 158,412 4,918,010 1

(435,000) I 1,816

$1.575.250 $202.362 S 4.500.801 l

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CITY OF OCALA, FLORIDA COMBINED STATEMENT OF OPERATIONS AND CHANCES IN UNRESERVED RETAINED EARNINGS OR RESERVED FUND BALANCE ALL PROPRIETARY FUND TYPES AND NCNEXPENDABLE TRUST FUND FOR THE YEAR ENDED 9EPTEMBER 30, 1978 Proprietary Fund Types Enterprise Funds Nonexpendable Trust Fund Electric and Water Total Bulk Power and Internal Consolidated (Memorandum Supply Sewer Service Retirement only)

Revenues:

Sale of electricity $22,597,473 $22,597,473 Sale of water $ 1,160,678 1,160,678 Operating fees S 912,516 912,516 Sewer service charges 768,282 768,282 Other service charges and other income 277,648 157,300 642 $ 56,369 491,959 City contributions 341,367 341,367 State contributions 111,829 111,829 Total revenues 22,875,121 2,086,260 913,158 509,565 26,384,104 Expenses:

Purchase of electricity 12,572,366 12,572,366 Distribution and transmission 1,466,790 1,466,790 Back-up 1,733,896 1,733,896 Operation and maintenance 266,608 266,608 Water treatment and distribution 462,270 462,270 Sewer treatment and distribution 553,999 553,999 Municipal garage 640,666 640,666 Data processing and central reproduction 260,617 260.617 Building maintenance 94,959 94,959 Pension payments 124,013 124,013 Custodial and invest-ment fees 22,114 22,114 Loss on sale of investments 22,917 22,917 Administration 531,534 49,077 580,611 Depreciation and amortization 1,050,564 420,131 8,292 1,478,987 Other 317,538 105,038 5,383 90 422.049 Total expenses 17,933,296 1,590.515 1,009,917 169,134 20,702,862 Operating income (loss) before interest (income) expense and other sources and (uses) 4,941,825 495,745 (96,759) 340,431 5,681.242 Interest (income) expense:

Revenue bonds and other 978,107 216,190 5,001 1,199,298 Investments (393,221) (106,257) (251,097) (750,575) 584,886 109,933 (246,096) 448,723 Other (sources) and uses:

Transfers to other funds 3,490,227 353,941 3,844,168 Transfers from other funds (42,487) (107,886) (150,373) 3,447,740 353,941 (107,886) 3,693,795 Net income 909,199 31,871 11,127 586,527 1,538,724 Disposition of net income:

Depreciation on contributed assets 10,888 10,888 Net increase in fund equity 909,199 42,759 11,127 586,527 1,549,612 Unreserved retained earnings at October 1, 1977 3,205,020 10,905,992 175,925 14,286,937 Reserved fund balance at l October 1, 1977 3,475,680 3,475,680 1

(Increase) decrease in reserves of restricted assets (61,942) 340,023 278,081 (Increase) in reserves of unrestricted assets (300,100) (195,000) (133,500) (628,600)

Unreserved retained earnings /

reserved fund balance at September 30, 1978 $ 3.752.177 911.093.'2g $ 53.552 $4.062.707 $18.961.710 See accompanying notes to financial statements, 8-

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I CITY OF OCALA, FLORIDA GENERAL FUND BALANCE SHEET SEPTEMBER 30, 1978 Assets 7.65-8.65% certificates of deposit, maturing through December 1978 $3,300,000 Accrued interest receivable 18,192 Accounts receivable 73,560 Due from other funds 784,014 Other assets 3,768 Total assets $4.179.534 Liabilities, Encumbrances and Fund Balance Bank overdraft $2,833,391 Accounts payable 100,461 Due to other funds 75,656 Total liabilities 3,009,508 Encumbrances outstanding 184,776 Fund balance:-

Reserved fund balance:

Reserved for accounts receivable 73,560 Reserved for 1978-79 budget 619,400 692,960 Unreserved fund balance 292,290 Total fund balance 985,250 Total liabilities, encumbrances, and fund balance $4.179.534 See accompanying notes to financial statements.

I CITY OF OCALA, FLORIDA I GENERAL FUND STATEMENT OF CHANGES IN UNRESERVED AND RESERVED FUND BALANCE FOR THE YEAR ENDED SEPTEMBER 30, 1978 Unreserved Reserved Fund Fund Total Fund balance at October 1, 1977 $ 165,379 $ 165,379 I Sources of financial resources Uses of financial 10,131,723 10,131,723

resources (9,302,328) (9,302,328)

Transfer of fund deficit from local public works municipal improvement fund (9,524) (9,524)

I Reserve of fund balance for 1978-79 budget appropriation Increase in reserve for (619,400) $619,400 changes in assets not avail-able for appropriation (73,560) 73,560 Fund balance at September 30, 1978 $ 292.290 $692.960 $ 985.250 I

I See accompanying notes to financial statements.

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CITY OF OCALA, FLORIDA  !

GENERAL F1'ND STATEMENT OF REVENUES - ACTUAL AND BUDCET FOR THE YEAR ENDED SEPTEMBER 30, 1978 Actual Over (Under) i Actual Budget Budget Sources of financial resources:-  !

Revenues-Property taxes $ 1,919,802 $ 1.940,300 ($ 20,496)

Charges for services 1,685,029 1,607,600 77,429 L State tevenue sharing 983,306 998,600 (15,294)  !

Fines and forfeitures 205,843 211,000 (5,157)

Licenses and permits 97,314 73,000 24,814 Federal and state inter-governmental revenue 427,000 512,966 (85,966)

Local intergovernmental revenue 115,898 48,000 67,898 l Use of City property 212,759 45,000 167.759 =

Other income 127,932 76,786 51,146 i Total revenues 5.775.383 5,513,252 262,131  !

Other sources:-

Transfers from other funds:

Electric revenue fund 3.490,227 3.490,227 Federal revenue sharing fund 279,496 427,925 (148,429)

Water and sewer fund 312,441 312,441 l Occupational license fund 160,000 160,000 Off-street parking fund 10,000 10,000 Antirecession fiscal assistance fund 15.676 39,115 (23.439)

Proceeds from long-term debt 88,500 118,500 (30,000:

Fund balance allocation 136,200 (136,200) {

Total sources of g; financial resources $10.131.723 $10.207.660 ($ 75.037) t i

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CITY OF GCALA, FLORIDA I CENERAL FUND STATEMENT OF EXPENDITURES AND ENCDtBRANCES -

ACTUAL AND BUDGET FOR THE YEAR ENDED SEPTEMBER 30, 1978 Actusl )

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Actual Budget Budget Uses of financial resources:- '

Expenditures:-

l Current:

I  !!ayor and city council $ 25,468 $ 17,695 S 7,773 City manager 131,488 138,207 (6,719)

City attorney 48,514 15,663 32,851 City clerk / internal auditor 62,601 69,345 (6,744)

Administration and accounting 246,126 273,866 (27,740)

City hall 53,244 60,023 (6,779)

Purchasing 57,135 60,823 (3,688)

Personnel 98,342 103,805 (5,463)

Planning 78,420 85,448 (7,028)

Building inspection 119,003 125,413 (6,410)

Public safety Police 1,673,781 1,749,767 (75,986)

Fire 973,858 1,031,320 (57,462)

Public works Engineering 669,146 653,397 15,749 Highways and streets 991,000 1,073,226 (82,226)

Culture and recreation 601,847 612,323 (10,476)

I Cost of services provided 1,333,108 1,355,380 (22,272)

Other expenditures 53,239 41,154 12.085 Nondepartmental appropriations 242,176 301,125 (38,949)

Capital outlay 883,743 1,497,596 (613,853)

Debt service 36,755 18,750 18,005 Total expendit res 8,378,994 9,284,326 (905,332)

I Other uses:-

Transfers to other funds:

Debt service funds 646,930 646,930 I Central Florida regional library Internal service fund Downtown development fund Total uses of financial resources 172,449 98,955 5,000 172,449 98,955 5,000

$9.302.328 S10.207.660 ($005.332)

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CITY OF OCALA, FLORIDA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1978 Occupational Central Florida License Regional Library Assets Cash $95,340 Restricted time deposit $ 1,816 Accounts receivable from other local governments 31,699 Total assets $95.340 $33.515 Liabilities, Encumbrances and Fund Balance Bank overdraft $15,114 Accounts payable 9,356 Deferred revenue Due to other funds

$78,895 5,000 l

Total liabilities 78,895 29,470 Encumbrances outstanding 2,470 Fund balance (deficit):

Reserved 7,500 24,016

Unreserved 8,945 (22,441) l Total fund balance (deficit) 16,445 1,575 Total liabilities, encumbrances and fund balance $95.340 $33.515 l '

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k See accompanying notes to financial statements.

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L Off-Street Downtown Parking Development Combined

[ $ 26 $43,829 $139,195 1,816 31,699

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$ 26 $43.829 $172.710 b

F $ 15,114 L $103 $ 1,613 11,072 83,895 46,684 46,684 103 48,297 156,765

_ 2,470

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(150) 4,700 36,066

_ 73 (9,168) (22,591)

(77) (4,468) 13,475 1,2g

{ $43.829 $172.710 e

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CITY OF OCALA, FLORIDA

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• IAL REVENUE FUNDS COMBINING STATEMENT OF CHANCC IS UNRESERVED AND RESERVED FUND BAIANCE FOR THE YEAR ENDED SEPTEMBER 30, 1978 Central Florida Occupational License Regional Library Unreserved Reserved Total Unreserved Reserved Total Fund Fund Fund Fund Fund Fund Balance Balance Balance Balance Balance Balance Fund balance at October 1, 1977 $ 2,740 $ 2,740 S28,544 S28,544 I

Get increase (decrease) i l

in fund balance during the year 13,705 13.705 (28,785) (28,785)

Reserve of fund balance for 1978-79 budget appropriation (7,500) $7,500 (22,200) 522,200 Reserve of fund balance for restricted time deposit 1,816 1,816 Fund balance (deficit) at September 30, 1978 $ 9 045 M $16.445 (S27.441) $?4.016 g I

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See accompanying notes to financial statements.

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i Off-Street Parking Downtown Development Combined Unreserved Reserved Total Unreserved Reserved Total Unreserved Reserved i Fund Fund Fund Fund Fund Fund Fund Fund Fund Balance Balance Balance Balance Balance Balance Balance Balance Balance S2,313 $2,313 $2,639 $2,639 $36,236 $36,236 (2,390) (2,390) (7.107) (7,107) (24,577) (24,577) l 150 ($150) (4,700) $4,700 (34,250) $34,250

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I _ 1,816 1,916 l

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S 73 (M) (S 77) (Q S4.700 (S4.468) (S22.501) S36.nAA M I i

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CITY OF OCALA, FLORIDA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND ENCLHBRANCES - ACTUAL AND BUDGET FOR THE YEAR ENDED SEPTEMBER 30, 1978 Actual Central Florida Occupational Regional Off-Street Downtown License Library Parking Development Combined Sources of financial resources:-

Revenues:

County grants $196,709 $196.709 State grants 41,941 41,941 Total intergovernmental revenues 238,650 238,650 Licenses and permits $173,690 173,690 Real property taxes $41,426 41,426 Parking meters $18,968 18,968 Fines and forfeitures 7,379 7.379 Other s 45 15,387 1,509 24 16,965 Total revenues 173,735 261,416 20,477 41,450 497,078 other sources:

Transfer from general fund 172.449 5.000 177,449 Transfer from off-street parking. fund 11,410 11.410 Transfer from antirecession fiscal assistance fund 784 784 Total sources of financial resources 173,735 434,649 20,477 57,860 686,721 Uses of financial resources:-

Expenditures:-

Current:

Regional services 180,275 180,275 Ocala services 161,381 161,381 Regional administration 88,521 88,521 Library grants 16,386 16,386 Equipment rentals 878 878 Other 30 302 579 419 1.330 Capital outlay 16,569 23,633 40,202 Total expenditures 30 463,434 1,457 24.052 488.973 Other uses:

Transfer to improvement bonds debt service fund 40,915 40,915 Transfer to general fund 160,000 10,000 170,000 Transfer to downtown development fund 11,410 11,410 Total uses of financial resources 160,030 463,434 22,867 64,967 711,298 Net increase (decrease) in fund balance during the year before fund balance allocation 13,705 (28,785) (2,390) (7,107) (24.577)

Fund balance allocation Net increase (decrease) in fand balance during the year $ 13.705 ($ ?8.795) ($ 2.390) ($ 7.107) ($ 24.577)

See accompanying notes to financial statements.

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,I Budget d

Central i

I License Florida Occupational Regional Off-Street Library Parking Downtown Development Combined Actual Over (Under)

Budget I

l S207,027 $207,027 ($10,318) 27,959 27,959 13,982 234,986 234,986 3,664

.I 5162,700

$18,400

$41,000 162,700 41,000 18,400 10,990 426 568 i

8,500 8,500 (1.121) 100 16,710 1,510 11,200 29,520 (12,555) i 162,800 260,196 19,910 52,200 495,106 1,972 172,449 5,000 177,449 11,410 11,410 1,300 1,300 (516) 162,800 433,945 19,910 68,610 685,265 1,456

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170,077 170,077 10,198 166,686 166,686 (5,305) 89,775 89,775 (1,254) 17,500 17,500 (1,114) 1,200 1,200 (322) 2,500 12,395 I

9,895 (11,065) 17,907 500 22,400 40,807 (605) 2,500 461,945 1,700 32,295 498,440 (9,467) l I 160,000 10,000 11,410 40,915 40,915 170,000 11,410 162,500 461,945 23,110 73,210 720,765 (9.467) t I ($

300 300)

(28,000)

$ 28,000 (3,200)

$ 3,200 (4,600)

$ 4,600 (35,500)

S 35,500 10,923 (35,500)

($24.577) i l

CITY OF OCALA, FLORIDA DEBT SERVICE FUNDS 1

l COMBINING BALANCE SHEET l

SEPTEMBER 30, 1978 General Obligation Excise Tax Bonds Bonds l

Assets Cash $ 23,565 $ 70,579 Cash and United States government security held in escrow 7.25-7.875% certificates of deposit, maturing through December 1978 110,600 136,783 United States government securities 326,595 Accrued interest receivable 3,308 11,682 Deposit with State of Florida .

Due from State of Florida  !

Due from other funds Other assets 32,977 Total assets $137.473 $578.616 Liabilities and Fund Balance Due to other funds $ 47,385 Total liabilities 47,385 Fund balance $137,473 531,231 .

Total liabilities and pl37.473 fund balance $578.616 l

See accompanying notes to financial statements.

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i Pollution Improvement Control Bonds Bonds Combined I

$ 1,550 $ 95,694

$ 88,683 88,683 29,717 277,100 47,531 374,126 1,137 59 16,186 81,236 81,236 190,000 190,000 40,915 40,915 32,977

$120.850 $359.978 $1.196.917 l

l

$ 47,385 ,

47,385 l

$120,850 ,$359,978 1,149,532 I $120.850 $359.978 $1.196.917 l

t CITY OF OCALA, FLORIDA DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED SEPTEMBER 30, 1978 General Obligation Excise Tax Bonds Bonds Sources of financial resources:-

Revenues:

Income from investments held by State of Florida Interest income $ 6,439 $ 38,931 Income from investments held in escrow Other income Total revenues 6,439 38,931 g

other sources: 5 Transfer from general fund 160,587 381,343 Transfer from downtown development fund Transfer from special assessment fund Total sources of financial resources 167,026 420,274 Uses of financial resources:-

Expenditures: E' Bond principal payments 150,000 185,000 E-

Bond interest and paying agent fees 10,776 199,661 Total expenditures 160,776 384,661 Net increase in fund balance during the year 6,250 35,613 Fund balance at October 1, 1977 131,223 495,618 Fund balance at September 30, 1978 $137.473 $531.231 l

See accompanying notes to financial statements.

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Pollution 7 Improvement Control L Bonds Bonds Combined

$ 17,338 $ 17,338 F $ 6,119 51,489 L I 4,232 4,232 1,275 1,275 6,119 22,845 74,334

{ 40,915 105,000 646,930 40,915 l

78,841 78,841 47,034 206,686 841,020 l

31,000 55,000 421,000 i

9,995 129,454 349,886 40,995 184,454 770,886 I

6,039 22,232 70,134 114,811 337,746 1,079,398 l

$120.850 $359.978 $1.149.532 l

l 1

l

CITY OF OCALA, FLORIDA CAPITAL PROJECT FUNDS I

COMBINING BALANCE SPEET SEPTEMBER 30, 1978 l

l 1972 1974 Municipal Pollution Improvement Control Construction Construction Assets Cash $ 36,680 $ 12,794 7.77-8.75% certificates of deposit, maturing through March 1979 1,050,000 Accrued interest receivable 8,946 Due from federal government Due from State of Florida 210,614 Due from other funds 17,252 8,379 Total assets $1.112.878 $231.787 Liabilities and Fund Balance Bank overdraft Accounts payable $ 482 Contracts payable 117,628 $ 2,305 Retainage payable 60,588 8,379 Deferred grant revenue Due to other funds 506,235 37,690 Total liabilities 684,933 48,374 Fund balance (deficit) 427,945 183,413 Total liabilities and fund balance $1.112.878 $231.787 I

See accompanying notes to financial statements.

E E

E Local Public b Works Municipal Airport Improvement Improvement

{ Construction Construction Combined S 66,008 $ 115,482 1,050,000 8,946 15,596 $272,847 288,443 15,451 226,065 114,107 25,141 164,879 S195.711 $313.439 $1.853,815 I $ 6,477 $ 6,477

$ 6,400 6,882 I 11,351 45,565 268,892 72,174 5,073 400,176 186,706 5,073 129,644 673,569 192,960 352,616 1,278,883 j 2,751 (39,177)

I 574,932 '

$195.711 $313,439 $1.853.815 I

I I

I l CITY OF OCALA, F1,0RIDA CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITt'KIS AND CHANGES IN Ft3D BALANCE FOR THE YEAR ENDED SEPTEMBER 30, 1978 Local 1972 1974 Public Works Municipal Pollution Municipal Airport Improvement Control Improvement Improvement Construction Const ruction Construction Construction

~

combined Sources of financial resources:-

Revenues:-

Federal grantst Street and storm drainage improvements S 500,0C0 $ 500,000 Recreation improvements 239,837 239.837 City hall addition 367,803 367,803 Airport improvements $705,191 705,191 State of Florida grant 39,177 39,177 income from investments held by State of Florida $ 20,102 20,102 Interest income $ 78,966 78,966 Total revenues 78,966 20,102 1,107,640 744,368 1,951,076 Other sources:

Transfer from 1972 municipal improvement construction fund 50,000 50,000 Transfer from special assessment fund 94 153 94,153 Total sources of financial resources 78,966 20,102 1.251,793 744,368 2,095,229 Uses of financial resources:-

Expenditures:-

Capital outlay:

Street and storm drainage improvements 768,861 594,153 1,363,014 Recreation improvements 249.361 249,361 City hall addition 415,052 415,052 Airport improvements 783,545 783,545 Water and sewer improvements 85,269 169,449 254,718 Total expenditures 854,130 169,449 1,258,566 783,545 3,065,690 Other uses:

Transfer to local public works municipal improve-ment construction fund 50,000 50,000 Total uses of financial resources 904,130 169,449 1,258,566 783,545 3.115,690 Net (decrease) in fund balance during the year (825,164) (149,347) (6,773) (39,177) (1,020,461)

Fund balance at October 1, 1977 1,688,109 332,760 2,000,869 Transfer of fund deficit of completed project to general fund 9,524 9,524 Contribution to internal service fund (435,000) (435,000)

Fund balance (deficit) at September 30, 1978 S 427.945 $183.413 $ 2.751 ($ 30.177) S 574.032 ll See accompanying notes to financial statements.

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CITY OF OCALA, FLORIDA SPECIAL ASSESSMENT FUND BALANCE SHEET SEPTEMBER 30, 1978 Assets Cash $ 277,202 6.9-7.9% certificates of deposit, maturing through February 1979 905,000 United States government securities 62,000 Accrued interest receivable on investments 37,029 Street and sewer assessments receivable:

Current 75,283 Delinquent 30,376 Deferred 723,637 Due from other funds 247,056 Other 1,820 Total assets $2.359.403 Liabilities and Fund Balance Due to other funds S 94,153 6% street improvement bonds, $50,000 g due in 1983 and $10,000 in 1989 60,000 E.

5.5% unsecured note payable to bank due January 1980 280,000 6.5% street improvement bonds,

$150,000 due in 1981 and $200,000 in 1987 350,000 l Total liabilities 784,153 l Fund balance 1,575,250 Total liabilities and fund balance $2.359.403 I

See accompanying notes to financial statements.

1 I CITY OF OCALA, FLORIDA SPECIAL ASSESSMENT FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED SPETEMBER 30, 1978 I Sources of financial resources:-

Revenues:

Special assessments levied $ 221,548 Interest income on investments 60,886 Interest and penalties on special assessments 49,367 Other income 1,063

.I Total sources of financial resources 332,864 Uses of financial resources:-

Expenditures:

Interest expense 31,818 Professional fees 3,307 Other 7,211 Total expenditures 42,336 Other uses:

Transfer to LPW municipal improvement construction fund 94,153 Transfer to pollution control bonds debt service fund 78,841 Total uses of financial resources 215,330 I Net increase in fund balance during the year Fund balance at October 1, 1977 117,534 1,457,716 Fund balance at September 30, 1978 $1,575,250 I

See accompanying notes to financial statements.

l CITY OF OCALA, FLORIDA ELECTRIC AND BUI.K POWER SUPPLY REVENUE FUNDS CONSOLIDATING BALANCE SHEET SEPTEMBER 30, 1978 Electric Bulk Revenue Power Supply Fund Revenue Fund Eliminations Consolidated Assets Current assets:

Cash $ 2,838,637 $ 2,838,637 Accounts receivable, less allow-ance for doubtful accounts of $83,000 $ 2,381,660 2,381,660 Accrued unbilled revenues 1,605,873 1,605.873 Inventories 1,011,834 1,011,834 Due from other funds 251,350 47,385 ($210.040) 88,695 Prepaid expenses 18,424 43,290 61,714 Total current assets 5,269,141 2,929,312 (210,0'0) 7,988,413 Restricted assets:

Cast 1,860,131 433,584 2,293,715 6.u e.75% certificates of

'spo s it , maturing through April 1986 3,394,966 917,750 4,312,716 United States government securities 375,158 375,158 Accrued interest receivable 57,100 14,257 71,357 Due from other funds 409.229 26,668 14,35,897)

Total restricted assets 6,096,584 1,392,259 (435,897) 7,052,946 Property and equipment, nec 13,390,880 8,539,982 21,930,862 Issuance expenses on long-term debt 110,748 182,879 293,627 Total assets $24.967.353 $13.044.432 ($f45.037) $37.265.cs8 Liabilities and Rerained Earnings Curree- liabilities:

Bank overdraft $ 1,774,138 $ 1,774,138 Accounts payable 191,409 S 1,754,222 1,945,631 Due to other funds 370 210,040 $210,040 370 Customer deposits 852,260 852,260 2,818,177 1,964,262 210.040 4,572,399 Current liabilities payable from restricted assets:

Revenue bonds payable within one year 620,000 620,000 Accounts payable 11,947 115,466 127,413 Accrued interest payable 168,379 304,764 473,143 l Due to other funds 1,116,686 407,041 435,897 1,087,830 l

1,917,012 827,271 435,897 2,308,386

, Total current liabilities 4,735,189 2,791,533 645,937 6,880,785 l

Revenue bonds payable after one year 7,123.815 11,004,660 18,128,475 Retained earnings (deficit):

Reserved for debt service reserve 626.065 1,072,429 1,698,494 Reserved for debt service 972,294 459,660 1,431,954 Reserved for capital projects 4,822,835 (78,530) 4,744,305 Reserved for renewal and replacement 143,458 186.100 329,558 Reserved for 1978-79 budget 213,200 86,900 300,100 Total reserved retained earnings 6,777,852 1,726,559 8,504,411 l Unreserved retained earnings (deficit) 6.230,497 (2,478,320) 3,752,177 Total retained earnings (deficit) 13,008,349 (751,761) 12,256,588 Total liabilities and retained earnings $24.A67.353 313.044.432 $645.937 $37.265.848 See accompanying notes to financial statements.

sm - - - - ,

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CITY OF OCAIA, FLORIDA ELEMIC AND BULK POWER SUPPLY REVENUE FUNDS .

CONSOLIDATING STATEMENT OF CHANCES IN RESERVED RETAINED EARNINGS FOR THE YEAR ENDED SEPTEMBER 30, 1978 Electric Revenue Fund Balance at October 1, 1977 Increase (decrease) in reserves of restricted assets affecting unreserved retained earnings:

Transfers from operating fund Transfers of capital improvements to operating fund Interest income Interest payments Other Net increase affecting unreserved retained earnings (Decrease) in reserves of restricted assets not affecting unreserved recairri earnings:

Transfer to bulk power supply construction fund Contribution to internal service fund Net (decrease) not affecting unreserved retained earnings Net increase (decrease) in reserves of restricted assets Increase in reserves of unrestricted assets:

Reserve for 1978-79 retained earnings budget appropriation Net increase in reserves of unrestricted assets Balance at September 30, 1978 Bulk Power Supply Revenue Fund Balance at October 1, 1977 Increase (decrease) in reserves of restricted assets affecting unreserved retained earnings:

Transfers from operating fund Transfers of capital improvements to operating fund Interest income Interest payments Net increase (decrease) affecting unreserved retained earnings Increase in reserves of restricted assets not affecting unreserved retained earnings:

Transfer from electric construction fund Net increase not affecting unreserved retained earnings Net increase (decrease) in reserves of restricted assets Increase in reserves of unrestricted assets:

Reserve for 1978-79 retained earnings budget appropriation Net increase in reserves of unrestricted assets Balance (deficit) at September 30, 1978 Consolidated Balance at October 1, 1977 Increase (decrease) in reserves of restricted assets affecting unreserved retained earnings:

Transfers from operating fund Transfers of capital improvements to operating fund Interest income Interest payments Other Net increase (decrease) affecting unreserved retained earnings (Decrease) in reserves of restricted assets not affecting unreserved recained earnings:

Contribution to interna- service fund Net (decrease) not affecting unreserved retained earnings Net increase (decrease) in reserves of restricted assets Increase in reserves of unrestricted assets:

Reserve for 1978-79 retained earnings budget appropriation

! Net increase in reserves of unrestricted assets Balance at September 30, 1978 See accompanying notes to financial statements.

[

E Reserved for Total Renewal Debt Reserves of Reserves of and Debt Service Restricted Unrestricted Total Construction Replacement Service Reserve Assets Assets Reserves F

$5,483,652 $ 22,736 $ 139,900 $ 589,727 $6,236,015 $6,236,015 630,400 1,012,900 1,643,300 1,643,300 (31,788) (509,678) (541,466) (541,466) 204,092 41,383 36,338 281,813 281,813 (221,699) (221,699) (221,699) 66,879 (190) 66,689 66,689 239,183 120,722 832,394 36,338 1,228,637 l 1,228,637 I

l (225,000)

(675,000)

(900,000)

(225,000)

(675,000)

(900,000)

(225,000)

(675,000)

(900,000)

(660,817) 120,722 832,394 36,338 328,637 328,637

$213,200 213,200 f 213,200 213,200 I

$4.822.835 $143.458 $ 072.294 $ 626.065 $6.564.652 $213.200 $6.777.852 l $1,424,641 $ 146,232 $1,010,481 $2,581,354 $2,581,354

$186,100 714,700 900,800 900,800 (1,776,396) (1,776,396) (1,776,396)

) 48,225 61,948 110,173 110,173 I

(401,272) (401,272) (401,272)

(1,728,171) 186,100 313,428 61,948 (1.166,695) (1,166,695) j 225,000 225,000 225,000 225,000 225,000 225,000 (1,503,171) 186,100 313,428 61,948 (941,695) (941,695)

$ 86,900 86,900 86,900 86,900

($ 78.530) $186.100 $ 459.6A0 $1.072.429 $1.639.650 $ 46.900 $1.726.559-

$6,908,293 $ 22,736 $ 286,132 $1,600,208 $8,817,369 $8,S17,369 816,500 1,727,600 2,544,100 l' (1,808,184) 252,317 (509,678) 41,383 98,286 (2,317,862) 391.986 2.544,100 (2,317,862) 391,986 (622,971) (622,971) (622,971) 66,879 (190) 66,689 66,689 (1,488,988) 306.822 1,145,822 98,286 61,942 61,942 (675,000) (675,000) (675 000)

(675,000) (675,000) ( 5,000)

_ O (2,163,988) 306,822 1,145,822_ 98,286 (613,058) _ '613,058)

I $4.744.305 $329.558 $1.431.954 $1.698.494 $8.204.311

$300,100 300,100

$300.100 300,100 300,100

$8.504.411 F

I _ - _ _ _ _ _ _ _ _ _ _

CITY OF OCALA, FLORIDA E1.ECTRIC AND BUI.K POWER SUPPLY REVENUE FUNDS CONSOLIDATING STATEVENT OF OPERATIONS AND CHANCES IN UNRESERVED RETAINE3 EARNINGS FOR THE YEAR ENDED SEPTEMBER 30, 1978 Bulk Power Electric Supply Revenue Revenue Fund Fund Eliminations Consolidated Operating revenues:

Sale of electricity $22,597,473 S15,711,782 S15,711,782 S22,597,473 Service charges and other income 277,648 277,648 Total operating revenues 22,875,121 15.711,782 15,711,782 22,875,121 Operating expenses:-

Operations:

Purchase of electricity 15,721,141 12.563,007 (15,711,782) 12,572,366 Distribution 1,222,183 1,222,183 Operation and maintenance 266,608 266,608 Back-up 1,733,896 1,733,896 Transmission 244,607 244,607 Administration 531,534 531,534 Depreciation and amortization 719,156 331,408 1,050,564 Other 311,538 311,538 Total operating expenses. 18,505,552 15,139,526 ($15,711,782) 17,933,296 Operating income before interest income and expense and other (sources) and use- 4,369,569 572,256 4.941,825 Interest (inceae) expense:

Revenue F, ads 359,867 618,240 978,107 Investments (283,048) (110,173) (393,221) 76,819 508,067 584,886 Other (sources) uses:

Transfer to general fund 3,490,227 3,490,227 Transfer from water and sewer fund (41,500) (41,500)

Transfer from bulk power supply revenue fund (380,000) 380,000 Transfer from antirecession fiscal assistance funt (987) (987) 3,067,740 380,000 3,447,740 Net income (loss) 1,225,010 (315,811) 909,199 l Unreserved retained earnings l (deficit) at October 1, 1977 6,447,324 (3,242,304) 3,205,020 (Increase) decrease in rese ves (61,942) of restricted assets (1,228,637) 1,166,695 l (Increase) in reserves of (86,900) (300,100) unrestricted assets (213,200)

Unreserved retained earnings (deficit) at September 30, 1978 $ 6.230.407 ($ ? .478. 320) $ 3.752.177 l

ll See accompanying notes'to financial statements.

34

ll CITY OF OCALA. FLORIDA I ELECTRIC AND BULK POWER SUPPLY REVENUE FUNDS CONSOLIDATING STATEMENT OF CRANCES IN FINANCIAL POSITION F_OR O THE YEAR ENDED SEPTEMBER 30, 1978 I Electric Revenue Fund Bulk Power Supply Revenue Fund Eliminations Consolidated Financial resources were provided I by (used for):

Operations :

Net income (loss)

Add - charges not affecting

$1,225,010 ($ 315,811) $ 909,199 working capital Depreciation and amortization of property and equipment and issuance expenses on long-term debt 719,156 331,408 1,050,564 Amortization of issuance discount on long-term debt 23,340 9,131 32,471 Loss on disposal of property and equipment 8,279 8,279 Working capital provided I 24,728 by operatious 1,975,785 2,000.513 Reduction in investment in CR-3 36,095 36,095 Contribution to bulk power supply revenue fund (225,000) 225,000 (Increase) decrease in restricted I assets Total financial resources provided Financial resources were used for:

(852,844) 897,941 1,159,015 1,444,838

($435,897)

(435,897) 742,068 2,778,676 I

Additions to property and equipment 531,511 1,871,633 2,403,144 Reduction of revenue bonds payable 620,000 620,000 Contribution to internal service fund 675,000 675,000 Total financial resources used 1,826,511 1,871,633 3,698,144 Decrease in working capital $ 929.570 S 426.705 ($435.807) S 919.468 I Cash Analysis of Changes in Components of Working Cspital Increase (decrease) in current assets:

$2,558,441 $2,558.441 Certificates of deposit ($ 20,000)

I (20,000)

Accounts receivable 525,676 (156,499) 369,177 Accrued unbilled revenue (21,051) (21,051)

Inventories 319,950 319,950 Due from other funds 249,640 (1,435,852) ($210.040) (1,396,252)

Prepaid expenses 18,424 43,290 61,714 I Increase in current assets (Increase) decrease in current liabilities:

Bank overdraft 1,072,639 (1,594,127) 1,009,380 (210,040) 1,871,979 (1,594,127)

I Accounts payable Due to other funds Current liabilities payable from restricted assets Customer deposits (88,622) 1,563,419 (1,774,530)

(107,349)

(500,870)

(210,040)

(725,265)

(210.040)

(435,897)

(589,492) 1,563,419 (2,063,898)

(107,349)

I Increase in current liabilities Decrease in working capital (2,001,209)

$ 928.570 (1,436,175)

$ 426.745 (645,937)

$435.997 (2,791,447)

$ 019.468 ll See accompanying notes to financial statements.

CITY OF OCALA, FLORIDA WATER AND SEWER FUND .

BALANCE SHEET SEPTEMBER 30, 1978 Assets Current assets:

Cash $ 503,190 Inventories 56,829 Prepaid expense 14,107 Other current assets 10,171 Total current assets 584,297 Restricted assets:

Cash 236,258 7.25-7.875% certificates of deposit, maturing through July 1979 696,698 United States government securities 102,473 Accrued interest receivable 27,789 .

Total restricted assets 1,063,218 Property and equipment, net 16,255,263 Total assets $17.902.779 .

Liabilities. Contributions and Retained Earnings Current liabilities:

Accounts payable $ 55,439 Due to other funds 17,208 72,647 Current liabilities payable from restricted assets:

Revenue bonds payable witlin one year 400,000 ,

Accounts payable 76,525 Deferred revenue 82,897 '

Accrued interest payable 49,772 Due to other funds 224,045 833,239 Total current liabilities 905,886 Revenue bonds payable after one year 2,930,000 Contributions 2,182,460 Retained earnings (deficit):-

Reserved:

Reserved for renewal and replacement 38,461 Reserved for debt service (85,947)

Reserved for debt service reserve 643,144 Reserved for 1978-79 budget 195,000 Total reserved retained earnings 790,658 Unreserved retained earnings 11.093,774 Total retained earnings 11,884,432 Total liabilities, contributions and retained earnings $17.002.778 ll ll ll See accompanying notes to financial statements.

- -- - - . .,a , .,, aa.aa,-.- d- m n -.._ m--_.- ._.-a- - u--

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CITY OF OCALA, FLORIDA WATER AND SEWER FUND STATEMENT OF CHANGES IN RESERVED RETAINED EARNINGS FOR THE YEAR ENDED SEPTEMBER 30, 1978 Reserved for Debt Renewal and Debt Service Replacement Service Reserve Balance (deficit) at October 1, 1977 ($27,418) $257,243 $705,856 Increase (decrease) in reserves of restricted assets:

Transfers from operating fund 100,200 140,000 Transfer of capital improve-ments to operating fund (34,321) 1 Interest income 26,197 79,788 Transfer from water and sewer debt service reserve 142,500 (142,500)

Principal and interest payments (651,663)

Other (224)

Net increase (decrease) in reserves of restricted assets 65,879 (343,190) (62,712)

Increase in reserves of unrestricted assets:

Reserve for 1978-79 retained earnings budget appropriation Net increase in reserves of unrestricted assets Balance (deficit) at September 30, 1978 $38.461 ($ 85.947) $643.144 l

l See accompanying notes to financial statements.

1.

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Total Reserves of Reserves of

{ Restricted Assets Unrestricted Assets Total Reserves r~

L $935,681 $935,681 F

L 240,200 240,200 (34,321) (34,321)  !

105,985 105,985

[ (651,663)

(224)

(651,663)

~(224)

[ (340,023) (340,023)

~

$195,000 195,000

[ 195,000 195,000

$595.658 $195.000 $790.658 b i E

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CITY OF OCALA, FLORIDA WATER AND SEWER FUND l

STATEMENT OF OPERATIONS AND CHANGES I IN UNRESERVED RETAINED EARNINGS FOR THE YEAR ENDED SEPTEMBER 30, 1978 l Operating revenues:

I Sale of water $ 1,160,678 Sewer service charges 768,282 l Other income 157,300 Total operating revenues 2,086,260 Operating expenses:-

Operations:

Water treatment 313,021 Water distribution 149,249

, Sewer treatment 350,587 l Sewer collection 203,412 l Administration 49,077 Other expenses 105,038 l Depreciation 420,131 m Total operating expenses 1,590,515 Operating income before interest income and expense and other uses 495,745 Interest (income) expense:

Revenue bonds 216,190 Investments (106,257) 109,933 Other uses:

Transfer to general fund 312,441 Transfer to electric revenue fund 41,500 353,941 Net income 31,871 Disposition of net income:

Decrease in contributed capital -

depreciation of contributed assets 10,888 Increase in unreserved retained earnings 42,759 Unreserved retained earnings at October 1, 1977 10,905,992 Decrease in reserves of restricted assets 340,023 (Increase) in reserves of unrestricted assets (195,000) l Unreserved retained earnings at September 30, 1978 $11.093.774 See accompanying notes to financial statements.

l l

l CITY OF OCALA, FLORIDA I WATER AND SEWER FUND STATEMENT OF CHANGES IN FINANCIAL POSITION FOR THE YEAR ENDED SEPTEMBER 30, 1978 I

l Financial resources were provided by:-

I l

Operations:

Net income Add - charges not affecting working

$ 31,871 capital I Deprecintion Loss of disposal of property 420,131 and equipment 13,055 Working capital provided by operations 465,057 l Federal grant contributions 1,676,748 I Contributions from developers Contribution from 1972 municipal improvement construction fund 261,882 85,269 Contribution from 1974 pollution control construction fund 169,449 Decrease in restricted assets 146,666_

Total financial resources provided 2,805,071 Financial resources were used for:

Additions to property and equipment 2,272,486 Reduction of bonds payable 400,000 Total financial resources used 2,672,486 Increase in working capital $ 132.585 Analysis of Changes in Components of Working Capital Increase (decrease) in current assets:

Cash 5 429,169 Inventories (6,416)

Prepaid expense 14,107 Other current assets 1,015 Due from other funds (115,888) 321,987 (Increase) decrease in current

l3 liabilities:

Accounts payable (19,019)

Due to other funds 3,833 Current liabilities payable from restricted assets (174,216)

(189,402)

Increase in working capital $ 132.585 See accompanying notes to financial statements.

I CITY OF OCALA, FLORIDA INTERNAL SERVICE FUND l BALANCE SHEET SEPTEMBER 30, 1978 Assets Current assets:

Cash $ 94,138 Prepaid expense 1,904 Other assets 668 Due from other funds 890,870 Total current assets 987,580 Property and equipment, net 322,275 Total assets $1.309.855 ,

t Liabilities, Contributions and Retained Earnings Current liabilities:

Accounts payable $ 12,759 Due to other funds 44 Total current liabilities 12,803 Contributions 1,110,000  ;

Retained earnings:

Reserved for 1978-79 budget 133,500  :

Unreserved 53,552 Total retained earnings 187,052 Total liabilities, contributions and retained earnings $1.309.855 l

l See accompanying notes to financial statements.

i

i L

p CITY OF OCALA, FLORIDA INTERNAL SERVICE FUND i e STATEMENT OF CHANGES IN UNRESERVED AND L RESERVED RETAINED EARNINGS FOR THE YEAR ENDED SEPTEMBER 30, 1978 L

r Unreserved Reserved Total L Retained Retained Retainted Earnings Earnings Earnings Retained earnings at October 1, 1977 $175,925 $175,925 Net income 11,127 11,127

{ Reserve of fund balance for 1978-79 budget appropriation (133,500) S133.500 l Retained earnings at September 30, 1978 $ 53.552 $133.500 $187.052 l

l I See accompanying notes to financial statement.

i, CITY OF OCALA, FLORIDA INTERNAL SERVICE FUND STATEMENT OF OPERATIONS FOR THE YEAR ENDED SEPTEMBER 30, 1978 Operating revenues:

Billings to other funds $ 912,516 Other income 642 .

Total operating revenues 913,158 Operating expenses:

Municipal garage 640,666 Building maintenance 94,959 Data processing 214,167 Central reproduction 46,450 Depreciation 8,292 Other 5,383 Total operating expenses 1,009,917 l Operating loss before other sources (96,759)  :

Other sources:

Transfer from general fund 98,955 Transfer from antirecession fiscal assistance fund 8,931 107,886 Net income $ 11.127 I

I:

See accompanying notes to financial statements.

CITY OF OCALA, FLORIDA INTERNAL SERVICE FUND STATEMENT OF CHANGES IN FINANCIAL POSITION Fod THE YEAR ENDED SEPTEMBER 30, 1978 Financial resources were provided by:-

I Operations:

Net income Add - charges not affecting

$ 11,127 working capital Depreciation 8,292 Loss on disposal of property and equipment 401 Working capital provided by operations 19,820 Contribution from electric revenue fund I Contribution from 1972 municipal improvement fund 675,000 435,000 Total financial resources provided 1,129,820 Financial resources were used for:

Additions to property and equipment 228,618 Total financial resources used 228,618 Increase in working capital $ 901.202 Analysis of Changes in Components of Working Capital Increase (decrease) in current assets:

Cash I Miscellaneous accounts receivable Prepaid expense Other assets

$ 1,621 (559) 1,904 168 Due from other funds 890,870 894,004 (Increase) decrease in current I liabilities:

Accounts payable 7,198 I Increase in working capital $

7,198 901s 202 See accompanying notes to financial statements.

I CITY OF OCALA,~?I.ORIDA TRUST FUNDS COM3INING BALANCE SHEET SEPTEMBER 30, ;978 Nonex-Expendable pendable Federal Antireces- Consol-Reven2e sion Fiscal idated Sharing Assistance Retirement .

Fund Fund Fund Combined -

Assets Cash $175,103 S17,198 $ 97,171 S 289,469 Interest receivable 61,684 61,684 Dividends receivable 6,996 6,996 Corporate and other bonds, at cost (market value - $3,237,528) 3,339,332 3,339,332 Common stocks, at cost (market value - $1,504,892) 1,663,429 1,663,429 Due from other funds 38,015 12,500 50,515 Total assets $213.115 $29.698 S5.168.612 $5.411.425 Liabilities, Encumbrances, Contributions and Fund Balance Accounts payable $ 1,027 $ 77 $ 1,104 Total liabilities 1,027 77 1,104 Encumbrances outstanding 37,520 1,827 39,347 Employee pension contributions $1,106,405 1.106,405 Fund balance:-

Reserved fund balance:

Reserved for retirement benefits 4,062,207 4,062,207 Reserved for 1978-79 budget 55,400 55,400 55,400 4,062,207 4,117,607 l Unreserved fund balance 119,168 27,794 146,962 .

Total fund balance 174,568 27,794 4,062,207 4,264,569 Total liabilities, encumbrances, contributions and fund balance $213.115 S29.698 $5.168.612 $5.411.425 i

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ll See accompanying notes to financial statements.

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CITY OF OCALA, FLORIDA EXPENDABLE TRUST FUNDS COMBINING STATEMENT OF CHANGES IN UNRESERVED AND RESERVED FUND BALANCE FOR THE YEAR ENDED SEPTEMBER 30, 1978 Federal Revenue Sharing Fund Unreserved Reserved Total Fund Fund Fund Balance Balance Balance Fund balance at October 1, 1977 $117,779 $117,779 Net increase (decrease) in l.

fund balance during the year 56,789 56,789 Reserve of fund balance for -

1978-79 budget appropriation (55,400) $55,400 Fund balance at September 30, 1978 $119.168 155.4QQ $174.568 I;-

I See accompanying notes to financial statements.

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l Antirecession Fiscal Assistance Fund Combined l

Unreserved Unreserved Reserved Fund Fund Fund Fund Balance Balance Balance Balance i S40,633 $158,412 $158,412 (12,839) 43,950 43,950 (55,400) $55,400 [

$27.794 $146.962 $55.400 $202.362  !

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CITY OF OCALA, FLORIDA NONEXPENDABLE CONSOLIDATED RETIREMENT FUND STATEMENT OF OPERATIONS AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED SEPTEMBER 30, 1978 Revenues:

Interest from investments $ 251,097 Dividend income 56,369 City contributions 341,367 State contributions 111,829 Total revenue 760,662 Expenses:

Pension payments 124,013 Custodial and investment fees 22,114 Loss on sale of investments 22,917 Interest expense on employee contributions refunded 5,001 Other 90, Total expenses 174,135 Net income 586,527 Fund balance at October 1, E

lpd 3,475,680 m Fund balance at September 30, 1978 $4,062.207 I

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l See accompanying notes to financial statements.

CITY OF OCALA, FLORIDA EXPENDABLE TRUST FUNDS

. COMBINING STATEMENT OF REVENUES, EXPENDITURES j AND ENCUMBRANCES FOR THE YEAR ENDED SEPTEMBER 30, 1978 Federal Antirecession Revenue Fiscal Sharing Assistance Fund Fund Combined Sources of financial resources:-

Revenues:

Federal revenue sharing entitlements $331,655 $331,655 Antirecession fiscal assistance entitlements $13,539 13,539 Other revenue 4,630 4,630 Total sources of financial resources 336,285 13,539 349,824 Uses of financial resources:

Transfer to general fund 279,496 15,676 295,172 Transfer to internal service fund 8,931 8,931 Transfer to electric I revenue fund Transfer to Central Florida regional 987 987 library fund. 784 784 Total uses of financial resources 279,496 26,378 305,874 Net increase (decrease) in fund balance during the year S 56.789 ($12.839) $ 43.950 l

See accompanying notes to financial statements, l l

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l CITY OF OCALA, FLORIDA NONEXPENDABLE CONSOLIDATED RETIRE 11ENT FUND STATEMENT OF CHANGES IN FINANCIAL POSITION FOR THE YEAR ENDED SEPTEMBER 30, 1978 Financial resources were provided by:-

Operations:

Net income $586,527 Working capital provided by operations 586,527 Employee pension contributions 186,202 Total financial resources provided 772,729 Financial resources were used for:

Refunded employee contributions 73,544 l

Total financial resources used 73,544 Increase in working capital $699.185 Analysis of Changes in Components of Working Capital Increase (decrease) in current assets:

Cash ($ 24,582)

Investments 829,334 Interest receivable 577 Dividends receivable 6,996 Accounts receivable (93,690)

Due from other funds (19,450)

Increase in working capital $699.185 I

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l See accompanying notes to financial statements.

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CITY OF OCALA, FLORIDA STATEMENT OF CHANGES IN GENERAL FIXED ASSETS .

FOR THE YEAR ENDED SEPTEMBER 30, 1978 October 1, 1977 Additions Cost:

Land $ 3,455,248 $ 110,494 Buildings 2,842,848 10,202 Improvements other than buildings 10,269,021 2,267,141 Equipment and furniture 2,745,285 485,249 Construction in progress 147,365 1,157,838 S19.459.767 $4.030.924 Net investment in general fixed assets:-

Investment in property acquired prior to September 30, 1975 $17,447,579 Investment in property acquired after September 30, 1975:

Capital proj ect funds - bonds 197,994 $ 816,109 General fund 1,206,319 467,674 Special revenue funds 337,538 40,202 Trust funds - federal entitlements 227,837 268,110 Special assessment fund 42,500 94,153 Federal and state grants 1,854,282 Contributions 490,394

$19.459.767 $4.030.924 See accompanying notes to financial statements.

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$19,826 45,533

$ 3,585,568 2,853,050 12,581,695

($324,297)

I 2,906,237

($65,359) 1,239,844 (S324.297) $23.166.394

($324,297) S17,123,282 l l

1,014,103 (S44,619) 1,629,374 377,740 495,947 136,653

$44,619 1,898,901 490,394

($324,297) $23.166.394 I

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CITY OF OCALA, FLORIDA STATEMENT OF CHANGES IN GENERAL LONG-TERM DEBT FOR THE YEAR ENDED SEPTEMBER 30, 1978 General October 1, Long-Term 1977 Debt Issued Serial bonds:

Amount available in debt E service funds $1,079,398 5' Amount to be provided 5,751,602 <

Other notes payable:

Amount to be provided 35,000 $88,500 Total available and amount to be provided $6.,866,000 $88.500 General obligation debt payable:

Serial bonds $6,831,000 Other notes payable 35,000 $88,500 Total general obligation debt payable $6.866.000 $88.500 I.

I See accompanying notes to financial statements.  ;

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I i General Debt Service Long-Term Funds September 1

Debt Retired Operations 30, 1978

$70,134 $1,149.532

($421,000) (70,134) 5,260,468 g (421,000) 6,410,000 (35,000) 88,500

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($456.000) L $6.498.500 I ($421,000)

(35,000)

$ $6,410,000 88,500

($456.000) $ $6.498.500 i

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CITY OF OCALA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 1978 NOTE 1 - DESCRIPTION OF FUNDS:

The City of Ocala (the " City") operates under a council-manager form of government and provides the following services as authorized by its charter: public safety, public works, public utilities, culture, recreation and community development. Public housing services are provided by the Ocala Housing Authority.

This Authority is a separate governmental entity, and its finan-cial statements are n'ot included in this report.

The accounts of the City are organized on the basis of funds or accout.t groups, each of which is considered a separate account-ing entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, equities, revenues, and expenditures or expenses.

The various funds are grouped by type in the financial statements.

The following fund types and account groups are used by the City:

GOVERNMENTAL FUNDS General Fund The general fund is the general operating fund of the City.

General tax revenues (e.g. , property and franchise) and other receipts not specifically restricted by law or administrative action to be accounted for in a separate fund are recorded in the general fund. Also recorded in this fund are the general operat-ing expenditures, the fixed charges, and the capital improvement costs that are not legally or administratively required to be paid through other funds.

! Special Revenue Funds Special revenue funds are used to account for revenues ll legally or administrative 1y restricted to finance specific activ-ities other than special assessments, expendable trusts, or major improvements. Special revenue funds used by the City are:

Occupational License In this fund are recorded business license and permit revenues which are pledged as security for the Refunding and Improvement Excise Tax Bonds dated July 1, 1965 and January 1, 1972. Revenues collected are transferred to the general fund for debt sersice on the Refunding and Improvement Excise Tax Bonds.

I Central Florida Regional Library I Used to account for federal, state and county grants, library operating revenues, and general fund subsidy which are restricted for the operation of the Regional Library.

Off-Street Parking This fund accounts for the proceeds from the City's I parking system. Off-street parking revenues are pledged as security for the Improvement Bonds dated July 1, 1966.

Downtown Development Used to account for property taxes levied against down-town property owners. These property tax revenues are used for debt service on the Improvement Bonds, dated July 1, 1966.

Debt Service Funds Debt service funds are used to account for the accumulation of resources for the payment of principal and interest requirements on general obligation and other improvement revenue bonds not expected to be paid from proprietary or special assessment funds.

Capital Project Funds Capital project funds are used to account for resources ear-marked for the acquisition and construction of major capital facilities other than those financed by proprietary funds.

Special Assessment Funds Special assessment funds are used t& account for financial resources obtained and used for the finata.ing and construction of improvements that are to be fully or partially paid for by assess-l ments against benefited properties.

PROPRIETARY FUNDS Enterprise Funds I Enterprise funds are used to account for operations that pro-vide a service to citizens. Enterprise operations are financed principally by user charges for the provision of that service where the periodic measurement of net income is conside red appro-I priate for capital maintenance, public policy, managemc-at control, accountability, or other purposes.

Enterprise funds used by the City are:

Bulk Power Supply Revenue Fund Used to account for the construction, operation and main-tenance of the City-owned portion o.f Crystal River Nuclear Plant No. 3(CR-3). Purchases of electricity (principally from Florida Power Corporation), in addition to the City's share of electricity generated by CR-3, are recorded in this fund and sold to the City-owned Electric Revenue System for sale to the general public.

Electric Revenue Fund This fund accounts for the construction, operation and maintenance of the City-owned electric system. Electricity, which is sold to the general public, is purchased from the City-owned Bulk Power Supply System.

Water and Sewer Fund This fund accounts for the construction, operation and maintenance of the City-owned water and sewer system.

Internal Service Fund The internal service fund accounts for the operation of the '

municipal garage, data processing, central reproduction and building maintenance departments which are financed by user fees charged to other City departments.

FIDUCIARY FUNDS Trust funds are used to account for assets held by the City as Trustee. Expendable trust funds use the modified accrual basis of accounting; the nonexpendable trust fund uses the full-accrual method.

Expendable trust funds used by the City are:

I-Federal Revenue Sharing Fund This fund accounts for revenues and related expendi-tures under the State and Local Fiscal Assistance Act of 1972 (as E l

amended). g Antirecession Fiscal Assistance Fund This fund accounts for revenues and related expendi-l tures received under the Antirecession Fiscal Aid Program which was authorized by the Public Works Employment Act of 1976.

The nonexpendable trust fund used by the City is:

Consolidated Retirement Fund This fund accounts for the activities of the City admin-istered pension plan for all eligible City employees, including policemen and firemen.

ACCOUNT GROUPS

I General Fixed Asset Account Group This account group is established to account for all fixed assets of the City, other than those accounted for in the enterprise and internal service funds.

General Long-Term Debt Account Group This account group is established to account for the long-term debt that is backed by the City's full faith and credit or for debt not expected to be paid from proprietary or special assessment funds.

NOTE 2 -

SUMMARY

OF SIGNIFICANT ACCOUNTING POLICIES:

i The accounting policies of the City of Ocala conform to gener-ally accepted accounting principles applicable to governmental units except for the electric revenue fund. Depreciation expense and accumulated depreciation for the electric revenue fund are recorded I

based on estimates since detail records are not presently maintained l for the majority of the property and equipment. The following is a summary of the more significant principles and practices used in the preparation of the accompanying financial statements.

l Basis of Accounting The financial statements of the general, special revenue, l expendable trust funds and debt service funds are presented on a l modified accrual basis of accounting. Under this method of account-1 ing, revenues are generally recorded when cash is received, except l for material amounts whose normal time of receipt is delayed, and I interest income and certain fees, which are recorded when earned.

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Expenditures are generally recorded on an accrual basis except:

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a. Encumbrances, such as purchase orders, are recorded as an expenditure at the date funds are committed.

. Inventory is recorded as an expenditure when purchased.

c. Interest expense on long-term debt is recorded as an expenditure in the debt service funds when paid or on the due date.

d. Expenditures are not divided between years by the recording of prepaid expenses,

e. Vacation and sick pay are not accrued (See Note 9).

The financial statements of other funds are presented on an accrual basis of accounting, except that interest income for special assessments receivable and related interest expense for long-term debt is not accrued, llomogeneous funds are consolidated for purposes of financial statement presentation. Interfund transactions and balances are eliminated in the consolidation of homogeneous funds. Other funds which are similar'by type but not homogeneous are combined. Inter-fund transactions and balances are not climinated on funds which are combined rather than consolidated.

Interfund payables and receivables are noninterest bearing and generally are liquidated monthly.

Investments Investments in United States government securities and certi-ficates of deposit are stated at cost, which together with the accrued interest receivable approximates market. It is generally the policy of the City to hold investments until maturity.

Investments in stocks and bonds of the consolidated retirement fund are likewise stated at cost (See Note 4, however).

The City, to maximize investment yields, pools monics from various funds for investment purposes. The interest income resulting from pooling is allocated to the respective funds based on the sources of funds invested.

Accounts Receivable from Grantors Accounts receivable from grantors represent grants for specific programs or capital projects. Program grants and capital grants for general fixed assets are recorded in the applicable governmental fund as receivables and revenues at the time reimburs-able project costs are incurred (all significant grant restric-tions are satisfied). Grant revenues, if any, received in advance of meeting all major grant restrictions are deferred. Capital grants for general fixed asset additions prior to October 1, 1977 are recorded in the general fixed asset account group as invest-ments by the governmental fund which expended the grant monies.

Capital grants for general fixed asset additions subsequent to September 30, 1977 are recorded in the general fixed asset account group as contributions (See Note 3).

Capital grants for fixed asset additions to the enterprise funds are also recorded as receivables when reimbursable project

1 I costs are incurred. Capital grants for fixed asset additions to the enterprise funds prior to October 1, 1977 are recorded as l additions to retained earnings. Capital grants for fixed asset additions to the enterprise funds subsequent to September 30, ,

1977 are recorded as additions to contributions in aid of construc-tion (See Note 3).

Federal and state grants are generally made available to the City under lines of credit and/or are reimbursed to the City as proj ect costs are incurred. The following summarizes the signi-ficant federal and state grants awarded to the City as of September 30, 1978 but not collected or accrued.

Grant Amount Community Development Block I Grants $437,000 Local Public Works Grants 177,000 FAA Airport Improvement Grants, including State of Florida participation 192,000 Inventories I Inventories on enterprise funds consist primarily of equip-ment and supplies held for capital improvements and are stated at average cost. Obsolete and unusable items have been reduced to estimated salvage values.

Property and Equipment Proprietary Funds Units of property and equipment on proprietary funds were recorded in fiscal 1976 at cost, if known, or estimated cost 1 (except for extensions and improvements other than buildings on the electric revenue fund). The use of estimated cost was neces-E sary since the City had not fully maintained detail property 5 records. The City used appraisals and other estimation techniques (indices) to estimate, where necessary, the original cost of the units of property and equipment.

Since 1976, all additions to fixed assets on proprietary funds have been recorded at cost with retirements recorded using the cost (net of depreciation) established in 1976.

I of the City is of the opinion that use of estimated cost to Management establish the units of property and equipment does not result in I a material misstatement of asset values or depreciation expense on the proprietary funds.

Additions, improvements and expenditures that significantly I extend the useful life of proprietary fund assets are capital-ized. Other expenditures for repairs and maintenance are charged to operations as incurred. Depreciation is provided on the straight-line method over the following estimated useful lives:

Buildings 30 years Extensions and improvements other than buildings (water and sewer and internal service funds) 30-60 years Fixtures, vehicles and equipment 5-15 years The City has not maintained detail property records for extensions and improvements other than buildings of the electric revenue fund. Notwithstanding, accumulated depreciation for these assets of the electric revenue fund was estimated at 25% of the recorded cost of the depreciable property at September 30, 1976. Depreciation expense for extensions and improvements other than buildings of the electric revenue fund has been provided at approximately 3% of the recorded cost of depreciable property for fiscal years subsequent to September 30, 1976.

An annual depreciation rate of 3.6% is applied to the recorded cost of the Crystal River Unit No. 3. This annual depreciation rate was approved by the Florida Public Service Commission for use by Florida Power Corporation, the majority owner of the project. The City's share of nuclear fuel, which is included in the CR-3 investment account, is amortized to opera-tions on a unit-of-production method at a rate based on actual BTU's of energy produced.

Governmental Funds General fixed assets, including streets, storm drains and similar immovable assets, are acquired for general govern-mental purposes. General fixed assets are recorded as capital outlay in a governmental fund and are simultaneously capitalized at cost in the general fixed asset account group. Units of general fixed asset property and equipment were initially estab-lished in fiscal 1976 at cost, if known, or estimated cost in a manner similar to proprietary fund fixed assets. As with the proprietary funds, management of the City is of the opinion that use of estimates to record the detail of the general fixed asset account group does not result in a material misstatement of fixed asset cost.

Gifts or contributions to the City are recorded in the general fixed asset account group at their fair market value at the date received.

No depreciation is provided on general fixed assets.

Bond Discounts and Issuance Costs t

Bond discounts and issuance costs are deferred and amortized over the term of the bonds using the bonds outstanding method (which approximates the interest method).

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1 Bond discounts are presented as a reduction of the face amount of the related bonds payable.

Annual Budgets

!g An annual budget is prepared for all funds except the special g assessment fund, capital proj ect funds, debt service funds and the consolidated retirement fund. The budgets presented in the accompanying financial statements have been adjusted for all

,E revisi ns f the annual budget approved during the year by the City Council. The budgets for the governmental funds presented in the accompanying financial statements are prepared on the modi-3 W

fled accrual basis which is the same basis of accounting used to report the actual results of operations. Appropriations lapse at the end of each fiscal year.

Utility Revenues All customer receivables for electric, water, sewer, and sanitation charges are recorded in the electric revenue fund with related revenues recorded in the respective funds. Cash in the amount of the water, sewer and sanitation receivables is reim-3

'E bursed monthly to the respective funds by the electric revenue fund. Unbilled utility revenues are accrued based on the estimated usage between the last meter reading dates and year end.

Reserves of Fund Balance and Retained Earnings I Reserves of retained earnings on the enterprise funds are created by increases in assets restricted for debt service, renewal and replacement and new construction. These increases result from earnings on restricted assets and interfund transfers I

to restricted accounts. Earnings on restricted assets are included in consolidated net income of the enterprise funds. These increases in restricted assets decrease unreserved retained earnings and increase reserved retained earnings. The use of the restricted assets generates a restoration of unreserved retained earnings as debt payments are made and as newly constructed or replaced assets are placed into operation.

Prior to 1978, retained earnings on enterprise funds and

.g fund balances on governmental funds were not reserved for the sub-g sequent year's budget appropriations. In 1978, however, to more c1carly indicate the amount of undesignated retained earnings or fund balance available for appropriation, reserves of retained earnings or fund balance, as applicable, have been provided. The appropriation for the 1978-1979 fiscal year is authorized by the adoption of the budget in September for the ensuing fiscal year.

The beginning or October 1, 1977 retained earnings or fund balanca amounts have not been reclassified to reflect the reserve for the 1977-1978 budget appropriation.

l Reserves on the general, special revenue, capital proj ect and trust funds represent portions of fund balance which have been segregated for specific future uses.

Accounting Principle Restatement In March 1979, the National Council on Governmental Account-ing issued " Governmental Accounting and Financial Reporting Principles -Statement 1" which is a restatement of authoritative g governmental accounting principles. This restatement of princi- g ples is effective for fiscal years ending after June 30, 1980.

The most significant accounting principle change required to conform the City's accounting policies with those set forth in the revised statement is that encumbrances, such as purchase orders and construction contracts, may no longer be recorded for financial reporting purposes as expenditures until a liability has been incurred. Other changes relate principally to the method of financial statement presentation.

The City anticipates implementing the restatement in the year ended September 30, 1979. The implementation of Statement 1 is not expected to have a material affect on retained earnings (fund balance) or net income (excess of sources over uses of financial resources).

NOTE 3 - ACCOUNTING CHANGE:

In fiscal 1978, the City changed its method of accounting for capital grants received from federal, state or other sources.

In years previous to 1978, the City recorded capital grants on proprietary funds as revenue and recorded a corresponding depre-ciation expense in the operating statement for the assets con-structed or purchased with the grant monies. The City, to con-form to the accounting method described in Statement 2 of the National Council on Governmental Accounting (NCGA) entitled g

" Grant, Entitlement, and Shared Revenue Accounting and Reporting E by State and Local Governments" (issued in March 1979), has recorded in the year ended September 30, 1978 capital grants on proprietary funds as contributions to equity and the related depreciation on assets acquired or constructed with grant monies as a reduction of contribution equity.

The method of reporting capital grants on governmental funds has also been changed to conform with the NCGA Statement No. 2.

A capital grant designated for acquisition or purchase of general g fixed assets is, in the current fiscal year, recorded in the g general fixed asset account group as a contribution rather than as an investment by the governmental fund which expended the grant monies.

l The effect on the financial statements of the change for the year ended September 30, 1978 is to decrease net income for the I water and sewer fund by $1,677,000 and to record grant contribu- E tions to the general fixed asset account group of $1,899,000 l

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' It was not feasible to determine the cumulative effect on retained earnings of proprietary funds of retroactively adopting this accounting change. Accordingly, capital grants on proprie-tary funds received prior to October 1, 1977 are grouped with l retained earnings. Likewise, capital grants for purchase or I

J construction of general fixed assets received prior to October 1, 1977 are recorded as an investment by the governmental fund which expended the grant monies.

I NOTE 4 - PENSION PLAN:

I The City maintains a contributory pension plan covering full-time firemen, police officers and all other general employees.

l The City accounts for the pension plan in a separate trust fund.

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The City's contribution to the pension trust fund for the year ended September 30, 1978 is as follows:

Contributory Fund l General $231,200 i

Central Florida Regional Library 9,500 Water and Sewer 25,600 l Electric Revenue 59,200 Internal Service 15,900 Total pension cost $341.400 Each of the above funds contribute to the pension trust based on the respective fund's percentage of payroll to total payroll cost..

Pension costs in the accompanying financial statements are determined based on a biennial actuarial valuation performed as of October 1, 1976. Commencing October 1, 1978 the City will have the valuation performed annually as of October 1. The actuarial valuation determines the pension funding required.

Pension costs include normal costs and amortization of prior service cost over a 40-year period.

l Employee contributions to the pension trust fund are refund-able if the employee elects to terminate his vesting rights or is not vested at the date of employment termination. Pension bene-fits vest after ten years of service.

The unfunded past service liability at September 30, 1978, based on the October 1, 1978 actuarial valuation, was approximately

$471,000. The value of the assets in the consolidated retirement l

I fund exceeded the present value of vested benefits at September 30, 1978 by approximately $2,207,000 For the October 1, 1978 actuarial valuation, stN tantially all actuarial assumptions were changed to more fairly reflect past experience and expected future liabilities. The most signi-I ficant actuarial changes made were: (a) the investment return I j 1

assumption was increased from 4% to 6%; and (b) the salary increase and employee turnover assumptions were increased from approximately 3% to approximately 67.. These actuarial changes, it is estimated, will reduce normal costs for the next fiscal year by approximately

$71,000. Under the new actuarial assumptions the total contribu-tions required from the City in the subsequent year (including amortization) will decrease by approximately $78,000. In addition, the actuarial changes result in past service cost reductions of approximately $97,000.

Effective October 1, 1979, the pension benefits for those participants terminating or retiring subsequent to October 1, 1979 will be increased. The increase in the pension plan benefits will increase normal costs for the year ended September 30, 1979 by approximately $64,000. The impact this change will have on past service cost and vested benefits is not currently determinable.

The market value of pension investments at September 30, 1978 is approximately $260,000 less than the cost recorded in the accompanying financial statements (market value was approximately S400,000 less than cost at March 31, 1979) City officials believe the. decline in market value is of a temporary nature.

Should this decline represent a permanent impairment of the value of pension fund assets, adjustment of the carrying value of these investments would be required and additional pension plan contri-butions by other funds may be required.

NOTE 5 - PROPERTY AND EQUIPMENT:

Property and equipment at September 30, 1978 is summarized as follows:

Bulk Power Electric Supply Revenue Revenue Water and Internal Fund Fund Sewer Fund Service Fund Land $ 162,652 $ 374,729 $285,304 Buildings 226,100 51,048 41,000 Extensions and improvements other than buildings 19,093,883 18,567,858 Crystal River Plant l Unit No. 3 $7,299,957 m Fixtures, vehicles I

and equipment 638,770 255,023 83,026 l 20,121,405 7,299,957 19,248,658 409,330 Less - accumulated depreciation 6,730,525 536,371 4,749,432 87,055 13,390,880 6,763,586 14,499,226 322,275 Construction in g progress 1,776,396 1,756,037 g

$13.390.880 $8.539.982 $16.255.263 j31?E 3

I The cost of Crystal River Unit No. 3 (CR-3) represents the City's 1.3337. share of the ownership of a nuclear power generat-I ing plant (bulk power supply system) acquired through a participa-tion agreement with Florida Power Corpcration (FPC). Under the participation agreement, FPC is acting as agent for the City in l

l the maintenance and operation of the plant. The City is committed to pay its ownership share of the operational costs of the plant including, among others, capital improvements, nuclear fuel I procurements, operating and maintenance costs. For its invest-ment, the City receives the ratio of its percentage ownership in the net energy output of the CR-3 plant. The annual commitment of the City for the operation and maintenance of the plant is estimated to be $1,341,000 for the year ended September 30, 1979.

Estimates of operational costs for the subsequent year are pro-vided to the City by FPC annually.

As a result of the March 1979 Three-Mile Island accident in Pennsylvania, the Nuclear Regulatory Commission (NRC) is investi-gating various aspects of nuclear power generating plants within the United States, particularly those of the company which designed the Three-Mile Island Plant (incluces CR-3). The outcome of the NRC investigation and potential administrative or judicial pro-ceedings, as well as future legislative or regulatory changes, in the area of nuclear power generating plants will be significant factors in determining the amount of the City's commitment for I thc operation and maintenance of CR-3. At this time, however, it is not possible to determine what financial impact, if any, future NRC actions will have on the City's investment in or amount of operational commitments to CR-3.

I Detail property records supporting the cost of extensions and improvements other than buildings for the electric revenue fund are not presently maintained.

In 1976, the City Council adopted resolution 76-44 which a3 proved the establishment of a Utility Public Works Complex Fund.

I Tais fund was financed by contributions from the Electric Construc-tion and 1972 Municipal Improvement Funds of $550,000 and $435,000, respectively. During fiscal 1978, the City Council adopted I resolution 78-22 providing an additional contribution from the Electric Construction Fund to the Utility Public Works Complex Fund of $125,000. These contributions have been recorded during the I year ended September 30, 1978 in the Utility Public Works Complex Fund in accordance with City Council resolutions. The Utility Public Works Complex Fund will construct a Utility /Public Works Complex which will house the operations of the Electric, Water and Sewer and Public Works activities of the City. The Public Works Complex is consolidated with the Internal Service Fund since operations of the complex will be funded by user charges to the respective funds utilizing the complex. At September 30, 1978, construction of the complex had not commenced; however, the Utility Public Works Complex Fund has purchased the land ($241,000)

I for the site of the complex.

The internal service fund leases numerous data processing equipment under cancellable operating leases expiring during the next two years. On September 5, 1978, the City Council adopted Resolution 78-106, authorizing a $168,150 unsecured bank loan for the purchase of data processing equipment. The note payable l

dated October 4, 1978 was recorded on the internal service fund, l bears interest at 5.75% and is due in equal monthly instalments a through fiscal 1982.

Rental expense for the year ended September 30, 1978 for the internal service fund was approximately $122,000.

NOTE 6 - PROPRIETARY FUNDS LONG-TERM DEBT:

Electric and Bulk Power Supply Revenue Bonds In August 1977, the City entered into an advance refunding transaction under the full cash defeasance method. Power Supply Revenue bonds, Series 1977, and Electric Revenue bonds, Series 1977, in the principal amounts of $11,180,000 and $7,850,000, respectively, and Special Obligation bonds, Series 1977A for

$10,990,000 (collectively called the Refunding bonds) were issued to retire all the Electric Revenue certificates of the City dated June 1, 1959 and December 1, 1962, 1967 and 1972 and the Power Supply Revenue bonds dated April 1, 1976 (collectively called the Refunded bonds). The proceeds (less bond discounts) of the Refunding bonds of approximately $30,000,000 and a portion of the cash and investments in the debt service funds of the refunded issues totaling approximately $1,365,000 were placed in an irrev-ocable escrow account and invested in U.S. Treasury obligations.

The escrow account, together with interest earned thereon, will provide amounts sufficient for future payment of all interest and I

principal on the Refunded bonds and the newly issued Special 3 Obligation bonds, Series 1977A. Accordingly, the refunded Electric 3 Revenue certificates, the refunded Power Supply Revenue bonds dated April 1, 1976 and the Special Obligation bonds, Series

! 1977A, are not included in the City's outstanding long-term debt, l since the City legally satisfied its obligation with respect thereto through consummation of the advance refunding transaction.

Pursuant to the refunding transaction, the City transferred the remaining assets in the debt service funds of the Refunded bonds to the debt service funds of the Refunding bonds. Further, g the remaining assets in the renewal and replacement fund of the g Refunded bonds were transferred to the construction fund of the Refunded bonds. Construction and operating revenue funds of the Refunded bonds also remained in existence. As a result of these transactions, retained earnings in the Electric and the Bulk Power Supply Revenue funds are restricted in excess of that required under the Refunding bond indentures. The existence of these l.

excess retained earnings reserves, as well as the loss on refunding a of $1,450,693, has contributed to the unreserved retained earnings l

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deficit on the Bulk Power Supply Revenue Fund and has reduced the unreserved retained earnings of the Electric Revenue Fund. The unreserved retained earnings (deficit) will be restored in future years as debt service payments are made and as newly constructed

assets are placed in service.

The refunding electric and bulk power supply revenue bonds l mature as follows:

Electric Revenue Bulk Power Supply Bonds Series Revenue Bonds Total Fiscal Year Ended 1977 Dated Series 1977 Dated Principal September 30, August 1, 1977 August 1, 1977 Due 1979 $ 620,000 S 620,000 1980 665,000 665,000 1981 745,000 745,000 l 1982 850,000 850,000 I 1983 1984 1985 885,000 925,000 965,000 885,000 925,000 965,000 1986 1,010,000 1,010,000 1987 690,000 $ 355,000 1,045,000 1988 495,000 360,000 855,000 1989 - 2006 10,465,000 10,465,000 7,850,000 11,180,000 19,030,000 Less - current portion 620,000 620,000 Less - unamortized discount 106,185 175,340 281,525 Total long-term debt $7.123.815 $11.004.660 $18.128.475 I Interest rate 3.3 - 4.9% 4.6 - 5.75%

I The electric and bulk power supply revenue bonds are secured by the net revenues of the City's electric distribution and bulk power supply systems, respectively. The City is required to establish rates which will provide revenues each year which will be sufficient to pay 100% of all costs of operation and mainten-ance of the electric and bulk power systems, 125% of the bond debt service requirements becoming due during the fiscal year and 100%

of all reserve, renewal and replacement requirements.

The bond indentures provide, among other things, that funds lg derived from the operation of the systems must be deposited in l5 restricted accounts before earnings may be used for other lawful purposes. At September 30, 1978, the electric and bulk power supply revenue funds had assets restricted, in compliance with

I the indentures, for the following uses

I Bulk Power Electric Supply Revenue Revenue Consoli-Fund Fund Eliminations dated Construction $3,280,049 $ 64,553 $3,344,602 Renewal and replacement 586,176 186,100 772,276 Debt service 1,606,294 131,125 ($435,897) 1,301,522 g Debt service reserve 624,065 1,010,481 1,634,546 m

$6.096.584 $1.392.259 ($435.897) $7.052.946 Indenture provisions of the revenue bonds require monthly sinking fund contributions for current debt service of 1/12 and 1/6 of maturing principal and interest, respectively. In addition, certain reserves for future debt service requirements (50% and 100% of the largest principal and interest payments due in any succeeding year on electric and bulk power supply revenue bonds, respectively) must be maintained. In addition, renewal and replacement reserves are required to be established and maintained.

The renewal and replacement reserves are generally funded by monthly transfers calculated based on a percentage of the prior year's gross revenues.

During the year ended September 30, 1978, the bulk power 3 supply operating fund did not make the required monthly cash g.

contributions ($714,700 for the fiscal year) to the sinking fund.

The October 1, 1978 interest payment on the bulk power supply revenue bonds was made, however, using other resources of the general and electric revenue funds. In addition, the bulk power supply operating fund contributed to the renewal and replacement fund approximately $35,000 in excess of that allowed under the bond covenants.

The power supply revenue bonds maturing on or after October 1, 1988 are subj ect to early redemption at the option of the City on October 1, 1987 or on any interest payment date thereafter in inverse order of maturity. The premium for early redemption is 1/4 of 1% of the par value for each year from date of redemption to the date of maturity; such premium, however, cannot exceed 3%

of the par value.

Water and Sewer Fund Water and sewer revenue bonds, which were issued to finance 5 the construction of plants and extensions of the City's water and g sewer system, mature as follows:

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l i Fiscal Year Ended Revenue Bonds Dated September 30, July 1, 1968 m 1979 $ 400,000 l 1980 240,000 I 1981 1982 1983 250,000 260,000 270,000 1984 280,000 1985 290,000 1986 305,000 I 1987 325,000 I 1988 1989 345,000 365,000 3,330,000 Less - current portion 400,000 Long-term portion $2.930.000 Interest rate 5.9 - 6%

The water and sewer revenue bonds are secured by the earnings of the water and sewer fund and the Series 11,000 special assess-ment levy. The bonds maturing in 1980 through 1989 may be redeemed in inverse order prior to maturity, at the option of the City, on January 1, 1980 or on any interest payment date thereafter. The redemption premium ranges from 1% to 4% depending on date of early redemption. The City is required to establish water and sewer rates which will be sufficient to pay all cost of operation and maintenance of the system and, together with the proceeds of the special assessment levy, 125% of the greatest amount of debt service becoming due in any succeeding fiscal year plus 100% of the annual required amounts for the reserve and renewal and replacement accounts.

Bond indentures provide that funds derived from the operation of the water and sewer system must be deposited in restricted accounts before earnings may be used for other lawful purposes.

Specifically, the indenture provisions requires monthly sinking I fund contributions for current debt service of 1/12 and 1/6 of maturing principal and interest, respectively. In addition, reserves for future debt service must be established as well as I renewal and replacement reserves. The renewal and replacement reserves are generally funded by monthly transfers calculated based on a percentage of the prior year's gross revenues. At September 30, 1978, assets had been restricted, in compliance I with the indenture and for federal grants, to be used for the following:

lE Renewal and replacement $ 72,782

'E Debt service 187,376 Debt service reserve 643,144 I Indenture restrictions Construction (federal grant) 903,302 159,916 Total restricted assets $1.063.218

During 2 year ended September 30, 1978, contributions from the water an.' .cwer operating fund to the renewal and replacement fund were app oximately $11,000 less than the bond covenant require-ment; in addition, the sinking fund contribution from the special assessment fund was approximately $76,000 less than that required under the bond covenant.

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NOTE 7 - GENERAL LONG-TERM DEBT:

General long-term debt matures as follows:

Refunding and Improvement General Excise Tax Bonds Obligation Bor.Cs Dated Dated Dated Fiscal Year Ended February 1, July 1, January 1, September 30, 1955 1965 1972 1979 $150,000 $ 160,000 $ 35,000 1980 1981 160,000 165,000 175,000 35,000 35,000 l.

1982 180,000 40,000 1983 185,000 45,000 E 1984 195,000 45,000 m 1985 200,000 50,000 1986 210,000 55,000 g 1987 275,000 g 1988 285,000 1989 300,000 1990 315,000 1991 325,000 1992 330,000 1993 190,000 1994 1995 1996 m 1997 g 1998

$310.000 $1.470.000 $2.360.000 Interest rate 2.75% 4.25 - 4 m45*f 4 - 6.5%

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Pollution Improvement Unsecured Unsecured Control Bonds Bonds Bank Note Bank Note Series C, l Dated Dated Dated Dated Total July 1, October 4, June 29, January 1, Principal I

1966 1977 1978 1974 Due S 33,000 $ 6,500 $11,200 $ 55,000 $ 450,700 34,000 6,500 11,200 60,000 471,700 35,000 6,500 11,200 65,000 327,700 l 36,000 6,500 11,200 70,000 343,700 I 37,000 6,500 11,200 70,000 75,000 80,000 354,700 315,000 330,000 I 85,000 90,000 95,000 350,000 365,000 380,000 100,000 400,000 I 110,000 115,000 120,000 425,000 440,000 450,000 I 130,000 135,000 145,000 320,000 135,000 145,000 155,000 155,000 I 165,000 175,000 165,000 175,000 S175.000 $32.500 $56.000 $2.095.000 $6.498.500 4.7 -

4.8_751 @ M 5.75 - 6%

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I General Obligation Bonds The full faith and credit of the City is pledged to secure the general obligation bonds and the City agrees to levy property taxes in amounts which are sufficient to pay debt service on these bonds. The City has established a debt service fund to accumulate resources to finance this issue.

Refunding and Improvement Excise Tax Bonds The refunding and improvement excise tax bonds dated July 1, 1965 were issued to finance various municipal improvements including a police administration building, a new City Hall, fire stations, and land. The bonds maturing in 1979 through 1986 are subj ect to early redemption at the option of the City, on any interest payment date at a redemption premium of 1/. to 3%, depending on the date of early redemption. Occupational license taxes and cigarette taxes are pledged to secure this issue.

The refunding and improvement excise bonds dated January 1, 1972 were issued to finance various municipal improvements includ-ing a public works compound, arterial street improvements, city building renovations, electric operations and warehousing facil-ity and a downtown parking garage. The bonds maturing in 1984 through 1993 are subj ect to early redemption, at the option of the City, in inverse numerical order, on July 1, 1983 or any interest payment date thereafter, at a redemption premium of 1%

to 4%, depending on the date of early redemption. Occupational license taxes and cigarette taxes are pledged to secure this issue.

Provisions of the refunding and improvement excise tax bonds require monthly sinking fund contributions for current debt I

service of 1/12 and 1/6 of maturing principal and interest, respectively. In addition, certain reserves for future debt service requirements must be maintained. The City has estab-lished debt service and reserve funds which are consolidated in the accompanying financial statements.

l Future bond issues, if any, which are secured by occupa-tional license and cigarette taxes shall be subordinate to the 1965 and 1972 issues.

Improvement Bonds The improvement bonds dated July 1, 1966 were issued to finance the acquisition of land and construction of off-street parking facilities. The bonds maturing in 1979 through 1983 are subj ect to early redemption in inverse numerical order, at the option of the City, on any interest payment date at a redemption premium of 1% to 3%, depending on date of redemption. Off-street parking and cigarette tax revenues are pledged to secure this L

issue and, therefore, these bonds are subordinate to the refund-ing and improvement excise tax bonds described above.

Indenture provisicns of the improvement bonds require monthly sinking fund contributions to a debt service fund for current debt service of 1/12 and 1/6 of maturing principal and interest, respectively. During the year ended September 30, 1978, the required sinking fund cash contributions of approximately $41,000 were not made. The revenues of the off-street parking system must be sufficient to pay all operating expenses of the facility and, together with the proceeds of the cigarette taxes, to pay debt service and reserve requirements. The debt service and debt service reserve funds are consolidated in the accompanying finan-cial statements. Any other bonds issued which are secured by off-street parking revenues are subordinate to this issue.

Unsecured Bank Loans On October 4, 1977, the City Council adopted Resolution 78-03 approving a $32,500 unsecured bank loan for the purchase of land by the general fund. The note payable is dated October 4, 1977, bears interest annually at 5.75/. and is due in annual instalments of $6,500 through fiscal year 1983. There is no debt service fund established for this loan.

On May 23, 1978, the City Council adopted Resolution 78-74, approving a $56,000 unsecured bank loan for the purchase of land by the general fund. The note payable is dated June 29, 1978, bears interest annually at 5.5% and is due in annual instalments I of $11,200 through fiscal year 1983 fund established for this loan.

'here is no debt service Pollution Control Bonds, Series C All proceeds from the sale of the Pollution Control Bonds, I Series C, dated January 1, 1974 are being held by the State of Florida. Supporting documents for capital expenditures must be submitted to the State before funds may be released. The State of Florida also maintains the debt service reserve account for this issue of $181,000. Certain special assessments, sewer availability charges and State revenue sharing entitlements are pledged to secure the bonds. The bond indenture requires that all pledged I revenues be placed in a surplus pledged revenue account and 1/12 of the next annual loan payment be transferred monthly into an escrow account. If at any time, the monies on deposit in these l

I accounts exceed the next annual loan payment, the excess may be withdrawn from the accounts with the consent of the State Board of Administration of Florida. The City does not maintain the i

surplus pledged revenue account since the City's normal policy is to maintain the monthly escrow account at all times during the fiscal year in amounts sufficient to make the next annual loan I payment. However, at September 30, 1978, the balance in the l

i I monthly escrow account was $88,683 as compared to the next annual loan payment cf $180,266. e s

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I NOTE 8 - SPECIAL ASSESSMENT DEBT:

On June 28, 1977, the City Council adopted Resolution 77-57, authorizing the issuance of $110,000 Negotiable Street Improve-ment Bonds, Series 24,000. During the year ended September 30, 1978, the City sold to third parties $60,000 of this issue. As of September 30, 1978, the remaining $50,000 of this issue have not been sold. The issue is dated July 1, 1977, bears interest at 6% and is due in amounts of $50,000 in 1983 and $60,000 in E.

1989. The funds are secured and payable solely from Special E Assessment Series 24,000 which has been levied.

On May 23, 1978, the City Council adopted Resolution 78-76, authorizing the issuance of $280,000 Negotiable Street Improve-ment Bonds, Series 26,000 and 27,000. The bonds are dated July 1, 1978, bear interest at 6.75%, and are due in amounts of l

$100,000 in 1984 and $180,000 in 1990. The bonds are secured and payable solely from Special Assessments Series 26,000 and 27,000, which have or will be levied. As of September 30, 1978 no bonds of this issue had been sold. All street improvement bonds issued by the City and recorded in the special assessment fund are subj ect to early redemption at the option of the City at par plus accrued interest.  !

On July 18, 1978, the City Council adopted Resolution 78-88, approving a $280,000 unsecured bank loan for the construction of street improvements. The note payable is dated July 21, 1978, bears interest at 5.5% and is due on January 21, 1980.

NOTE 9 - COMMITMENTS:

City employees are entitled to accrue a maximum of 90 days sick leave and 12 days vacation. If the individual leaves the employ of the City, he is entitled to be paid for unused vaca-l tion, but not for unused sick leave. Unused sick leave (not to E exceed 90 days) is paid only at normal retirement based on a per- E centage ranging from 25% to 50% depending on years of service.

Expenditures for vacation and sick leave are recorded at the time B the benefits are paid. At September 30, 1978 accumulated sick leave (all funds) totaled approximately $1,023,000 and accumu-3 lated vacation pay (all funds) totaled approximately $223,000.

At September 30, 1978, the City had entered into construc-tion contracts for the completion of various capital projects and purchase of property and equipment. The approximate amount of E construction commitments at September 30, 1978 is as follows: E I

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Fund 1972 Municipal Improvement $ 26,500

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Bulk Power Supply Revenue 151,300

- LPW Municipal Improvement 90,400 Airport Improvement 6,900

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Total construction commitments $275.100 m

L NOTE 10 - CONTINGENCIES:

[ As a result of compliance audits, approximately $400,000 of expenditures of certain Local Public Works (LPW) grant monies have been questioned as to compliance with the specific terms of the F grant agreements. Resolution as to whether such grant expenditures L are ultimately accepted by the Economic Development Administration (administrator of the LPW grant program) is not currently deter-r minable. Further, at September 30, 1978 various HUD, FAA and I certain LPW and other federal entitlements have not been subjected to compliance audits.

l In March 1978, the City initiated a self-insurance program for vehicle damage insurance. The City supervises and administers the program. At September 30, 1978, the City has not appropriated .

any financial resources to cover expenditures, if any, relating I to this program. Also, the City is self-insured for general liability above any $100,000 loss (increased to $500,000 in March 1979). At September 30, 1978, the City has not appropriated l monies to fund expenditures, if any, relating to liability claims in excess of insurance coverage.

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l SEMINOLE ELECTRIC COOPERATIVE, INC.

REPORT ON EXAMINATION OF FINANCIAL STATEMENTS for the years ended December 31, 1979 and 1978 I

I COOPERS & LY B R AN D CERTIFIED PueLtC ACCOUNTANTS 0**D D)OYY S oc wJuuJl.\

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Pages Accountants' Report 1 Financial Statements:

Balance Sheets 2  !

Statements of Operations 3 i

Statements of Changes of Patronage Capital I and Other Margins and Equities (Deficits) 4 i

Statements of Changes in Financial Position 5 l i

Notes to Financial Statements 6-11 j I l I  ;

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COOPERS & LY B R A N D CERTIFIE D PUBLIC ACCOUNTANT S A ME MBER FIRM OF COOPERS 8. LVBRAND (INTERNATIONAL)

Board of Trustees Seminole Electric Cooperative, Inc.:

We have examined the balance sheets of Seminole Electric Cooperative, Inc. as of December 31, 1979 and 1978, and the related statements of operations, changes of patronage capital and other margins and equities (deficits), and changes in financial position for the years then ended. Our examinations were made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.

In our opinion, the financial statements referred to above I present fairly the financial position of Seminole Electric Cooperative, Inc. as of December 31, 1979 and 1978 and the results of its operations and the changes in i.ts financial position for the years then ended, in conformity with generally accepted accounting principles applied on a consistent basis.

l Tampa, Florida l February 22, 1980 l 1

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SEMINOLE ELECTRIC C00PE' BALANCE SHEETS, December 31 I

ASSETS 1979 1978 Utility plant (Notes 2, 3 and 6): Eq At original cost $ 9,902,458 $ 8,944,098-Construction work in progress 15,873,071 5,161,799 25,775,529 14,105,897 Less accumulated depreciation (946,900) (606,410)

Acquisition adjustment, less amortization 14,551 15,481 Net plant 24,843,181 13,514,968 Nuclear fuel, less amortization 380,226 328,166 Nuclear fuel in process of refinement and enrichment 513,891 388,114 IA Utility plant, net 25,737,298 14,231,248 C4 Investments in associated organizations, at cost (Note 4) 125,267 57,997 Ca Current assets:

Cash 118,396 42,028 Accounts receivable from members 206,934 131,507 Other receivables 5,346 23,438 Accrued unbilled revenues 754,192 262,344 Materials and supplies, at cost 360,751 -

Prepayments and other 192,418 6,696 Total current assets 1,638,037 466,013 C3 Deferred charges (Note 10) 744,502 238,813

_S28,245,104 S14,994,071 i

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.-- .=.- -- __-____:_______________-- ._-___:__-.__-____-_.____

(IVE, INC.

979 and 1978 o o

EQUITY AND LI ABILITIES 1979 1978 ty (Note 5):

aberships $ 1,200 $ 1,200

tronage capital 377,925 218,131 sher margins and equities (deficit) (77,242) (79,882)

,ated capital 17,919 17,919 Total equities 319,802 157,368

-term debt (Note 6) 14,878,023 9,458,785

ruction contracts retention payable 772,278 198,594 ent liabilities:

te payable (Note 7) 9,688,000 3,915,000 cde and const ruction accounts payable 1,998,128 1,169,481 xes and interest accrued 560,524 79,856 her current and accrued liabilities 28,349 14,987 Total current liabilites 12,275,001 5,179,324 itment s and cont ingenc ies (Notes 4 and 12) p28,245,104 $ 14,994.,071 Gee.

STATEMENTS OF OPERATIONS for the years ended December 31, 1979 and 1978 1979 1978 i Operating revenues and patronage capital (Note 2) $7,269,951 $6,003,560 Operating expenses:

Operation:

Fuel 185,691 113,287 Other production expenses (Note 8) 507,047 337,708 Purchased power 4,315,759 3,671,760 Transmission 399,066 369,536 Administrative and general 321,639 238,014 Maintenance 4,296 8,313 Depreciation and amortization (Note 2) 340,678 309,161 Taxes (Note 9) 137,712 150,730 Other (Note 10) 35,796 3,004 -

6,247,684 5,201,513 Operating margins before interest charges 1,022,267 802,047 Interest charges:

Long-term obligations 911,730 743,631 Current obligations 939,285 198,458 Other 2,314 733 Less interest charged to construction (Note 2) ( 990,856) (194,045) 862,473 748,777 Net operating margins 159,794 53,270 l Non-operating margins:

Interest and other income 2,640 14,720 Net margins $ 162,43/t $ 67,990 l See accompanying notes.

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STATEMENTS OF CHANGES OF PATRONAGE CAPITAL AND OTHER MARGINS AND EQUITIES (DEFICITS) i for the years ended December 31, 1979 and 1978 Other Margins f and Patronage Equities l Capital (Deficits) Total f

t Balance, December 31, 1977 $164,861 $(94,602) $ 70,259 Net margins, 1978 __

53,270 14,720 67,990 l l

Balance, December 31, 1978 218,131 (79,882) 138,249 Net margins, 1979 159,794 2,640 162,434 l Balance, December 31, 1979 $377,925 $(77,242) $300,683 l

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STATEMENTS OF CHANGES IN FINANCIAL POSITION for the years ended December 31, 1979 and 1978 1979 1978 Funds provided by:

Operations:

Net margins $ 162,434 $ 67,990 Add (deduct) items not af fecting working capital:

Depreciation and amortization of plant 340,678 309,161 Amortization of nuclear fuel (Note 2) 184,255 112,668 Total funds provided by operations 687,367 489,819 Increase in long-term debt 5,429,000 -

Increase in construction contracts retention payable 573,684 198,594 Decrease in working capital 5,923,653 4,411,315

$ 12,613,704 $ 5,099,728 Funds used for:

Property additions, including interest charged to construction $ 12,030,983 $ 4,762,589 Payments on long-term debt 9,762 -

Increase in investments 67,270 28,369 Increase in deferred charges 505,689 308,770

$ 12,613,704 S 5,099,728 Changes in components of working capital:

Increase (decrease) in current assets:

Cash $ 76,368 $ (30,660)

Refund receivable -

(1,191,602)

Accounts receivable from members 57,335 (7,830)

Accrued unbilled revenues 491,848 (41,368)

Materials and supplies 360,751 -

Prepayments and other 185,722 (3,938) 1,172,024 (1,275,398)

Increase (decrease) in current liabilities:

Note payable 5,773,000 2,459,802 Trade and construction accounts payable 828,647 669,316 Taxes and interest accrued 480,668 31,692 I Other current and accrued liabilities 13,362 (24,893)

__ 7,095,677 3,135,917 Decrease in working capital $ (5,'23,653) S(4,411,315) l See accompanying notes.

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NOTES TO FINANCIAL STATEMENTS

1. The Cooperative:

Seminole Electric Cooperative, Inc. (Seminole) is a generation and transmission cooperative. It is responsible for meeting the electric power and energy needs of its eleven distribution cooperative members operating within the State of Florida.

At the present time, the only Seminole-owned resources for supplying its members' electric power and energy requirements is its 1.6994%

undivided ownership interest in the Crystal River Unit #3 (CR3) nuclear power plant operated by Florida Power Corporation and various trans-mission lines connecting individual members to other power suppliers.

The balance of its members' needs are supplied by wholesale purchases of electricity from other power suppliers.

In order to supply a larger share of its members' projected needs, Seminole is constructing two new generating facilities (Seminole Unit 1 and Unit 2) near Palatka, Florida, with approximately 600 megawatts output per unit. Site certification was received on I September 18, 1979 and construction commenced October 1,1979. It is an.icipated that Seminole Unit I will be in operation for at least six months daring 1983.

2. Summary of Significant Accounting Policies:

Seminole maintains its accounts in accordance with policies prescribed or permitted by the Rural Electrification Administration (REA), which conform with generally accepted accounting principles in all material respects. The more significant of these policies are as follows:

(A) Utility Plant - Utility plant is stated at original cost. Such cost includes applicable supervisory and overhead cost, plus interest charged during construction (See Note 2-E).

The cost of maintenance and repairs, including renewals of minor items of property, is charged to operating expense. The cost of replacement of depreciable property units, as distinguished from minor items, is charged to utility plant. The cost of units replaced or retired, including cost of removal, net of any salvage value, is charged to accumulated depreciation.

(B) Operating Revenues and Patronage Capital - Seminole has wholesale power contracts with each of its members, whereby the members must purchase all electric power and energy which the member shall require for its system within the State of Florida to the extent that Seminole shall have such power and energy and facilities available; provided, however, that the member shall have the right to continue to purchase power under any existing contract (Continued) 6

NOTES TO FINANCIAL STATEMENTS, Continued

2. Summary of Significant Accounting Policies, continued:

with a supplier other than Seminole during the renainder of the terms of these existing contracts or until such time as Seminole requests these contracts be terminated. Payments received and disbursed by Seminole on behalf of its members under these existing contracts are not recognized either as a revenue or as a cost.

Operating revenues and patronage capital consist of billings for sales of electric power by Seminole to its members, a member adjustment factor, and a facilities use charge for Seminole's transmission lines servicing a single member cooperative.

Revenues and patronage capital are accrued monthly to match costs incurred in generation at CR3 and transmission line ownership or billings received for purchased power.

(C) Depreciation - Seminole provides for depreciation using the straight-line method at annual rates which will amortize the ,

original cost of depreciable property over its estimated useful service life. The rates for 1979 and 1978 were as follows:

1979 1978 Nuclear production plant 3.6% 3.6%

Transmission plant 2.75% 2.75%

General plant 13.6% 14.3%

The nuclear production plant rates include an estimated negative salvage value of 12%, representing estimated cost of removal and ,

disposal, j (D) Amortization of Nuclear Fuel - The cost of nuclear fuel is amortized to fuel expense based on the quantity of heat produced for generation of electric energy in relation to the quantity of heat expected to be produced over the life of the nuclear fuel core.

Although there is no facility presently in operation to process spent nuclear fuel and it may be necessary to store spent nuclear fuel for an indefinite period, no provision has been made in these statements for these costs.

(E) Capitalization of Interest - In accordance with procedures permitted under the Uniform System of Accounts prescribed by the REA, a portion of interest on borrowed funds, at rates of approximately 12.6% and 9.8% for 1979 and 1978, respectively, is capitalized as a component of the cost of construction work in progress, and is reflected as a reduction of interest expense.

(Continued) 7

NOTES TO FINANCIAL STATEMENTS, Continued

2. Summary of Significant Accounting Policies, continued:

(F) Reclassifications - Certain reclassifications have been made to the 1978 statements to conform to current classifications.

3. Utility Plant:

The original cost of Utility Plant at December 31, 1979 and 1978, was as follows:

1979 1978 Ownership (1.6994%) in nuclear plant $ 8,214,073 $ 8,139,751 Transmission plant 1,578,786 752,334 General plant 109,5,99 52,013 9,902,458 8,944,098 Construction work in progress 15,873,071 5,161,799

$25,775,529 $14,105,897 Construction work in progress at December 31, 1979 and 1978, consists mainly of engineering and site selection costs relevant to Seminole Unit 1 and engineering and construction costs on several transmission line projects. Substantially all of the Utility Plant assets are pledged as collateral for the REA and CFC mortgage notes.

4. Investment in Associated Organizations:

Investmente in associated organizations consist of the following:

December 31, l

1979 1978 Florida Rural Electric Cooperative Association $ 10,786 $ 10,786 National Rural Utilities Cooperative Finance Corporation (CFC)

Membership 1.000 1,000 Capital Term Certificates (CTC) 63. 9: 22,247 Patronage Capital Certificates 50,174 23,964

$ 125,267 S 57,997 l

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NOTES TO FINANCIAL STATEMENTS, Continued

4. Investments in Associated Organization, continued:

Seminole is obligated to purchase CTC's issued by CFC. Based on anticipated revenues, Seminole's future obligation for purchase of CTC's is as follows:

1980 - $ 50,000 1981 - S 69,000 1982 - $ 74,000 1983 - $ 80,000 1984 - $974,000 These certificates mature beginning in 2025 and bear interest at the rate of 3% annually.

5. Return of Equity Restrictions:

Under provision of the agreements relating to the REA mortgage notes, until the total of equities and margins equals or exceeds forty percent of total assets, the return by Seminole to members of capital contributed is limited generally to twenty-five percent of the patronage capital or margins received by Seminole in the next preceding year.

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6. Long-Term Debt:

Long-term debt consists of the following at December 31, 1979 and 1978:

1979 1978 First mortgage note payable to Federal Financing Bank, guaranteed by REA, due 2011, interest payable quarterly at 7.442% to 8.215%, first principal payment due in 1983. $ 8,931,000 $8,931,000 First mortgage note payable to REA, due 2008, payable in quarterly installments of approxi-mately $4,400 including interest at 5%.

$4,375 of principal is due in 1980. 269,223 278,985 First mortgage note payable to REA, due 2014, under agreement for total borrowings of $3.7 million. Interest payable quarterly at 5%,

first principal payment due in 1982. 1,252,000 -

First mortgage note payable to CFC,under an intermediate term loan agreement for $60 million, with a specific subordination of mortgage lien granted by REA Interest payable quarterly at prime, as defined, plus 1/2% (15.75% at December 31, 1979) due 1984, guaranteed by members. 4,177,000 -

Advances from members, unsecured, with no interest or due date. 248,800 248,800

$14,878,023 $9,458,785 (Continued) 9

NOTES TO FINANCIAL STATEMENTS, Continued

6. Long-Term Debt, continued:

In September 1979, Seminole received a commitment of FFB and REA for a loan by FFB to Seminole, in the amount of $1,104,388,000 to be used for long-term financing of the Seminole Unit 1, Unit 2, and I related transmission facilities project and a guarantee thereof by REA. On January 18, 1980, Seminole received the first advance against this loan, the proceeds of which were used to satisfy the CFC mortgage note. ,

7. Note Payable - CFC Line of Credit:

The amount shown on the balance sheet at December 31, 1979 represents ,

amounts owed to CFC under a total line of credit of $12 million.

The interest rate is the prime rate, as defined, plus 1/4% (15.5% at December 31, 1979). On January 18, 1980, prior to the expiration of this line of credit, Seminole secured a new line with the CFC for the same amount and interest rate for an additional year commencing January, 1980.

Seminole has a line of credit with CFC for an additional $25 million ,

for construction expenditures. There were no borrowings related to [

this agreement at December 31, 1979.

8. Other Production Expenses:

Other production expenses consist of CR3 operating and maintenance costs which represent Seminole's portion of all expenses incurred by Florida Power Corporation attributable to the operation of CR3 and properly recordable in accordance with the operating expense instruc-tions and in appropriate accounts as set forth in the Uniform System of Accounts. These payments are made to Florida Power Corporation in accordance with the Crystal River Unit #3 Participation Agreement.

9. Taxes:

Seminole files income tax returns with the Internal Revenue Service as an organization exempt from Federal income taxes under Section 501(c)(12) of the Internal Revenue Code. Tax expense represents property, gross receipt and payroll taxes.

10. Write-Off of Deferred Charges:

During 1979, Seminole wrote off approximately $34,000 which repre-sented costs related to an application to the Federal Energy Regulatory Commission for a preliminary permit to activate the Talquin Dam project.

(Continued) 10

NOTES TO FINANCIAL STATEMENTS, Continued I

10. Write-Off of Deferred Charges, continued:

A similar application was submitted by a municipal power system.

Both proposed renovation plans were considered equal, and, therefore, due to a preference clause in the Federal Power Act favoring municipal systems, the preliminary permit was not issued to Seminole.

At December 31, 1979, deferred charges consist of costs associated with securing a supply of coal for the planned Seminole generating units. Additional amounts consist of the costs incurred in negotiating possible joint ownership participation in a Florida Power & Light Company nuclear unit presently under construction, unamortized debt expense', and other miscellaneous deferrals.

11. Retirement Plan:  ;

Substantially all employees are covered by a pension plan which is funded through participation in a National Rural Electric Cooperative Association group plan. Pension costs were appror.imately $71,750 and

$34,950 for the years ended December 31,1979 and 1978, respectively.

12. Commitments and Contingencies:

Seminole anticipates making expenditures of approximately $76 million for Seninole Unit 1 and 2 project-related activicies during 1980 (See Note 1).

In addition, Seminole anticipates the expenditure of approximately I $8 million during 1980 for transmission facilities to meet the needs of its member systems and serve to connect the proposed generating units to the Florida bulk power supply grid.

At December 31, 1979, total executed project-related commitments approximated $450,000,000.

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FINANCIAL STATEMENTS AND AUDITORS' REPORT CITY OF ALACHUA ALACHUA, FLORIDA SEPTEMBER 30,'1979 I

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F FINANCIAL STATEMENTS AND u AUDITORS' REPORT

~ CITY OF ALACllUA ALACIIUA, FLORIDA SEPTEMBER 30, 1979 r

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L CONTENTS PAGE AUDITORS' REPORT 1 COMBINED BALANCE SHEET - ALL FUNES AND ACCOUNT GROUP 2 L GENERAL FUND l

Balance Sheets 3  !

f Statements of Changes in Fund Balance 4 l Statements of Revenues andTransfers - Budget and Actual 5 Statements of Expenditures and Transfers - Budget and Actual 6-7 l UTILITY FUNDS Consolidated Balance Sheets 8 I Consolidated Statements of Income and Retained Earnings 9 Consolidated Statements of Changes in Financial Position 10 l GENERAL FIXED ASSETS GROUP Statements of General Fixed Assets 11 l

l NOTES TO FINANCIAL STATEMENTS I

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L e-l PURVis, GRAY AND COMPANY No.

AeaanscAN INefffuTE OF CERTIFIED PUBLIC ACCOUNTANTS MEM*Epe OF CcnTeso PueuO AccouMTAufe Poet orrtCE mox eas a22 NORTHEAST Ist GTREET i PMfVATE COMPANIEe ANO INSTffUTES OF C.C.C. PnActics sacTiONe TELEPHONE 378246% AREA COGC 904 CERTriso Pusuc Accout(FANTe

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GAINESVILLE. FLORIDA 32602 F

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The Honorable City Commission L City of Alachua Alachua, Florida We have examined the financial statements of the various funds and account group of the City of Alachua, Florida, for the years ended September 30, 1979 and 1978, list- I ed in the foregoing table of contents. Our examinations were made in accordance with {

generally accepted auditing standards and, accordingly, included such tests of the '

accounting records and such other auditing procedures as we considered necessary in the circumstances.

In our opinion, the financial statements referred to above present fairly the finan-cial position of the various funds and account group of the City of Alachua, Florida, 30, 1979 and 1978, and the results of operations of such funds and

( es of Septemberchanges in financial position where applicable for the years then ended, with generally accepted accounting principles applied on a consistent basis.

The column on the accompanying combined balance sheet captioned " Total (Memorandum Only)"

is not necessary for a fair presentation of the financial statements, but is presented as additional analytical data.

( January 14, 1980 M, 42#1M '

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I COMBINED BATANCE SHEET SEPTEMBER 30, 1979 CITY OF ALACIIUA, FLORIDA GENERAL CONSOLIDATED FIXED TOTAL CENERAL UTILITY ASSETS (MEMORANDUM ONLY)

ASSETS FUND FUNDS GROUP 1979 1978 Cash and Savings Investments $57,135 $ 997,376 $1,054,511 $ 184,926 Accounts Receivable - Net After g Estimated Uncollectible 131,832 g

Accounts 4,266 156,917 161,183 Accrued Revenue Sharing 9,050 9,050 6,317 Accrued Interest Receivable 113 113 1,089 Materials and Supplia - At Cost 332 43,535 43,867 79,201 Prepaid Expenses 14,484 14,484 12,053 g Nuclear Fuel 32,184 32,184 25,299 3 Fixed Assets - Utility, At Cost Less Depreciation; e General At Cost 4,540,921 $693,762 5,234,683 4,631,781 g Due From Other Funds 24,406 24,406 33,869 Restricted Assets 868,695 868,695 1,005,200 Unamortized Discount on Bonds 145,135 145,135 138,084 TOTAL ASSETS 95,302 6,799,247 693,762 7,588,311 6,249,651 LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable 27,568 280,848 308,416 200,841 g Accrued Salaries and Expenses 1,207 12,427 13,634 10,267 g Customers' Deposits 63,378 63,378 54,764 ~

Retirement Contributions Payable 1,373 1,373 1,121 Due to Other Funds 24,406 24,406 33,870 Interest Payable - Bonds and Notes 108,247 108,247 94,191 g Notes and Bonds Payable 4,220,800 4,220,800 2,990,000 E TOTAL LIABILITIES 30,148 4,710,106 4,740,254 3,385,054 FUND EQUITY g Contributions 1,049,275 1,049,275 1,050,304 g Reserves 242,672 242,672 341,529 Investment in General Fixed Assets 693,762 693,762 615,129 Retained Earnings / Fund Balance 65,154 797,194 862,348 857,635 TOTAL FUND EQUITY 65,154 2,089,141 693,762 2,848,057 2,864,597 i

TCTAL LIABILITIES AND FUND EQUITY $ 95,302 ,$6g99,247 $693,762 $7,588,311 $6,249,651 l

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CENEPAL FUND F BALANCE SIIEETS L SEPTElIBER 30, 1979 AND 1978 CITY OF ALACIIUA, FLORIDA I '1979

$ gg 1978

{ C eh in Bank $ 31,822 $ 17,091 Investment in Certificates of Deposit 25,313 50,297 Caroline and Oil Inventory - At Cost 332 387 p Accrued Interest Receivable 113 1,089 Accounts Receivable - Sanitation Fees -

Nct After Estimated Uncollectible

{ Accounts ($0) 46 84 Accounts Receivable - Utility Taxes 4,220 2,513 Other Receivables - Court Fees 0 928 Accrued Federal Revenue Sharing 8,051 4,563 Accrued State Revenue Sharing 999 1,754

( Due From Utility Fund 24,406 33,869 TOTAL ASSETS 95,302 112,575 LIABILITIES AND FUND BALANCE LIABILITIES Accounts Payable 27,568 16,998

[ Accrued Salaries Payable 1,207 823 Ratirement Contributions Payable 1,121

{ 1,373 TOTAL LIABILITIE.- 30,148 18,942

[ FUND BALANCE 65,154 (>3,633 TOTAL LIABILITIES AND FUND BALANCE ~ $ 95,302 $112,575 l 1

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The cecompanying " Notes to Financial Statements" form an integral part of these statements.

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J CENERAL FUND STATEMENTS OF CHANGES IN FUND BATANCE FOR TIIE YEARS ENDED SEPTEMBER 30, 1979 AND 1978 _

CITY OF ALACilUA, FLORIDA 1979 1978 FUND BALANCE, OCTOBER 1 $ 93,633 $ 54,779 Revenues and Transfers 470,414 451,404 I

(Expenditures and Transfers) (498,893) (412,550)

FUND BALANCE, SEPTEMBER 30 $ 65,154 _$ 93,633

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The accompanying " Notes to Financial Statements" form an integral part of these statements.

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CENERAL FUND p STATEMENTS OF REVENUES AND TRANSFERS - BUDGET AND ACTUAL L FOR Tile YEARS ENDED SEPTEMBER 30, 1979 AND 1978 CITY OF ALACilUA, FLORIDA

{ 1979 VARIANCE 1979 1979 FAVORABLE 1978 BUDGET ACTUAL (UNFAVORABLE) ACTUAL

{- TAXES Property Taxes $ 62,876 $ 68,336 $ 5,460 $ 45,463 p Utility Taxes (Note 4) 115,440 106,668 ( 8,772) 123,357 l Franchise Fees 2,225 3,296 1,071 2,435 TOTAL TAXES 180,541 178,300 ( 2,241) 171,255 LICENSES AND PERMITS l Business and Occupational Licenses 2,400 3,118 718 4,618 I

l Building Permits Other TOTAL LICENSES AND PERI!ITS 14,406 3,600 20,406 17,817 2,923 23,858

(

3,411 677) 3,452 13,580 0

18,198 INTERCOVERNMENTAL REVENUE State Revenue Sharing 131,456 138,137 6,681 150,556 Federal Revenue Sharing 32,195 32,196 0 18,252 Mobile Home License Tax 0 2,992 2,992 1,698 Community Development Block Grant 225,000 42,000 (183,000) 0 State Grant 0 4,651 4,651 57,934 TOTAL INTERCOVERN!! ENTAL REVENUE 388,651 219,976 __(168,675) 228,440 CHARGES FOR CURRENT SERVICES Sanitation Fees 1,051 1,005 ( 46) 1,044 Public Safety 10,000 10,000 0 10,000 TOTAL CllARGES FOR CURRENT SERVICES 11,051 11,005 ( 46) 11,044 FINES AND FORFEITURES Court Fines 13,500 14,921 1,421 12,320 MISCELLANEOUS Interest 3,355 3,746 391 5,098 ;

other 18,500 18,608 108 5,049 TOTAL MISCELLANEOUS 21,855 22,354 499 10,147 TOTAL REVENUES 636,004 470,414 (165,590) 451,404 TRANSFERS Tranfers From Utility Fund 10,325 0 ( 10,325) 0 TOTAL REVENUES AND TRANSFERS $646,329 $470,414 $(175,915) $451,404 1

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Ths accompanying " Notes to Financial Statements" form an integral part of these statements.

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GENERAL FUND STATEME.'TS OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL m FOR Tile YEARS ENDED SEPTEMBER 30, 1979 AND 1978 CITY OF ALACHUA, FLORIDA 1979 I VARIANCE 1979 1979 FAVORABLE 1978 BUDGET ACTUAL (UNFAVORABLE) ACTUAL EXECUTIVE Personal Services $ 9,948 $ 10,089 $( 141) $ 7,877 Supplies and Operating Costs 0 0 0 1,899 TOTAL EXECUTIVE 9,948 10,089 ( 141) 9,776 FINANCE Personal Services 22,894 9,279 13,615 10,250 Supplies and Operating Costs 9,075 13,455 ( 4,380) 12,448 Capital Outlay 0 191 ( 19 ?,) 857 TOTAL FINANCE 31,969 22,925 9,044 23,555

_ LEGAL Supplies and Operating Costs 2,750 6,529 ( 3,779) 3,215 J COMMUNITY DEVELOPMENT PLANNING Supplies and Operating Costs 22,000 8,827 13,173 6,174 q GENERAL GOVERNMENT BUILDINGS l Supplies and Operating Costs 6,000 4,705 1,295 0 LAW ENFORCEMENT Personal Services 115,755 115,993 ( 238) 75,947 Supplies and Operating Costs 19,608 14,217 5,391 33,778 Capital Outlay 6,200 2,045 4,155 4,478 TOTAL LAW ENFORCEMENT 141,563 132,255 9,308 114,203 FIRE CONTROL Supplies and Operating Costs 15,072 15,957 ( 885) 13,172 Capital Outlay 4,500 4.565 ( 65) 6,448 TOTAL FIRE CONTROL 19,572 20,522 ( 950) 19,620 PROTECTIVE INSPECTION Supplies and Operating Costs 3,100 2,000 1,100 2,000 RESCUE SERVICES Supplies and Operating Costs 1,900 1,619 281 1,506 SANITATION AND WASTE CONTROL Personal Services 44,264 51,798 ( 7,534) 33,664 Supplies and Operating Costs 15,894 23,981 ( 8,087) 25,621 Capital Outlay 0 0 0 16,000 4

TOTAL SANITATION AND WASTE CONTROL 60,158 75,779 ( 15,621) 75,285 STREETS AND llIGHWAYS Personal Services 15,340 18,935 ( 3,595) 6,100 Supplies and Operating Costs 5,687 25,852 ( 20,165) 11,773 Capitsl Outlay 51,000 50,304 696 4,331 TOTAL STREETS AND HIGHWAYS 72,027 95,091 ( 23,064) 22,204 Il0USING AND COMMUNITY DEVELOPMENT Supplies and operating Costs 6,389 12,662 ( 6,273) 0 IIUD Block Grant 225,000 45,742 179,258 0 TOTAL IIOUSING AND COMMUNITY DEVELOPMENT 231,389 58,404 172,985 0 RECREATION Personal Services 2,350 81 2,269 84 Supplies and Operating Costs 13,000 5,665 7,335 6,268 TOTAL RECREATION 15,350 5,746 9,604 6,352 (Continued)

The accompanying " Notes to Financial Statements" form an integral part of these statements.

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L CENERAL FUND

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STATE!!ENTS OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL L FOR Tile YEARS ENDED SEPTEMBER 30, 1979 AND 1978 CITY OF ALACHUA, FLORIDA (Concluded)

L VARIANCE 1979 1979 FAVORABLE 1978 F BUDGET-ACTUAL (UNFAVORABLE) ACTUAL L MISCELLANEOUS Insurance $ 21,633 $ 15,252 $ 6,381 $ 7,952 m Mosquito Control 4,000 2,404 1,596 5,823 I Elcetions 0 0 0 1 l

Miscellaneous Other 2,970 5,620 ( 2,650) 6,110 l i

, TOTAL MISCELLANEOUS 28,603 23,276 5,327 19,886 I

'IDTAL EXPENDITURES 646,329 467,767 178,562 303,776 TRANSFERS Transfers To Utility Fund 0 31,126 ( 31,126) 108,774 TOTAL EXPENDITURES AND TRANSFERS $646,329 $498,893 $ 147,436 $412g 550 E

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Th?2 cccompanying " Notes to Financial Statements" form an integral part of these statements.

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I UTILITY FUNDS CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 1979 AND 1978 CITY OF ALACill'A, FLORIDA ASSETS 1979 1978 CURRENT ASSETS 5 3

Cash $ 11,293 $ 66,473 Savings and Certificates of Deposit 986,083 51,055 Accounts Receivable (Net of Estimated Uncollectible Accounts; $27,282 in 1979 and $21,816 in 1978) 156,917 128,307 Inventory of Materials and Supplies -

At Cost (Note 1) 43,535 78,814 Nuclear Fuel (Note 6) 32,184 25,299 g Prepaid Expenses (Ncte 7) 14,484 12,053 g TOTAL CURRENT ASSETS 1,244,496 362,001 RESTRICTED ASSETS I Customer Deposits - Savings 63,378 54,764 Sewer Assessments:

Cash - Savings and Certificates of Deposit 12,911 83,415 Sewer Assessments Receivable 398,740 492,997 E

g Accrued Interest Receivable 42,747 42,747 454,398 619,159 Bond Interest and Sinking Fund: (Note 9)

Savings and Certificates of Deposit 115,002 104,433 Certificates of Deposit - Reserve Account 223,517 223,190 '

Accrued Interest Receivable 12,400 3,664 350,919 331,287 TOTAL RESTRICTED ASSETS 868,695 1,005,210 UTILITY PLANT - Cost Less Depreciation (Note 10) 4,540,921 4,016,652 1

OTilER ASSETS Unamortized Bond Discount and Issue \

Costs 140,284 138,084 111scellaneous Deferred Debits 4,851 0 5

3 TOTAL OTilER ASSETS 145,135 138,084 TOTAL ASSETS $6,799,247 $5,521,947 1 I

I 1 The accompanying " Notes to Financial Statements" form an integral part of these statements.

LIABILITIES AND FUND EQUITY 1979 1978 CURRENT LIABILITIES Payable From Current Assets:

Accounts Payable $ 280,848 $ 183,843 Other Accrued Payables 12,427 9,444 Revenue Bond Anticipation Notes (Note 2) 730,800 0 Due to General Fund 24,406 33,870 1,048,481 227,157 Payable From Restricted Assets:

Customers Deposits 63,378 54,764 Accrued Interest Payable - Revenue Bonds and Anticipation Notes 108,247 94,191 171,625 148.955 TOTAL CURRENT LIABILITIES 1,220,106 376,112 I LOi4G-TERM LIABILITIES Revenue and Improvement Bond Anticipation Notes (Note 2) 500,000 0 Revenue Bonds Payable (Note 2) 2,990,000 2,990,000 TOTAL LONG-TERM LIABILITIES 3,490,000 2,990,000 TOTAL LIABILITIES 4,710,106 3,366,112 FU'ND EQUITY I Contributions (Note 11) 1,049,275 1,050,304 Reserve For Debt Service 242,672 341,529 Retained Earnings 797,194 764,002 l TOTAL FUND EQUITY 2,089,141 2,155,835 I $6,799,247 $5,521,947 TOTAL LIABILITIES AND FUND EQUITY l

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The accompanying " Notes to Financial Statements" form un integral part of these statements.

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UTILITY FUNDS CONSOLIDATED STATESfENTS OF INCOME AND PETAINED EARNINGS FOR Tile YEARS ENDED SEPTEMBER 30, 1979 AND 1978 CITY OF ALACilUA, FLORIDA NET SALES AND SERVICES Energy $1,059,703 $1,129,594 Water 96,563 85,057 Sewer Service 127,228 113,819 Other Service Revenues 29,994 46,393 (Disco'unts) .( 66,497) ( 78,445)

TOTAL NET SALES AND SERVICES I,246,991 1,296,418 OPERATING EXPENSES Power Production Expenses:

Nuclear Power Generation:

Operation 124,701 112,498 Maintenance 8,034 5,457 Other Power Supply Expenses:

Purchased Power and Other 732,309 773,024 Power Transmission Expenses 21,218 19,572 Distribution Expenses:

Operation 24,744 17,603 Maintenance 47,302 52,446 Customer Accounts Expenses 35,309 33,503 Administrative and General Expenses:

Operation 96,797 96,203 Maintenance 167 794 Taxes 2,032 2,242 Depreciation 126,825 122,853 (TOTAL OPERATING EXPENSES) (1,219,488) (1,236,195)

OPERATING INCOME 27,503 60,223 NONOPERATING REVENUES (EXPENSES)

Interest Income 82,330 74,980 Miscellaneous Other 3,260 1,406 Interest on Long-Term Debt ( 202,438) ( 177,758)

Amortization of Bond Discount ( 7,445) ( 4,354)

Loss on Refunding Bond Issue (Note 2) 0 fu 63,496)

TOTAL NONOPERATING REVENUES (EXPENSES) ( 124,293) ( 169,222)

(LOSS) BEFORE OPERATING TRANSFERS ( 96,790) ( 108,999)

OPERATING TRANSFERS FROM OTilER FUNDS 31,125 137,672 NET (LOSS) INCOME ( 65,665) 28,673 RETAINED EARNINGS, BEGINNING OF YEAR 764,002 769,572 DECREASE (INCREASE) IN RESERVES 98,857 ( 34,243)

RETAINED EARNINGS, END OF YEAR $ 797,194, $ 764,002 The accompanying " Notes to Financial Statements" form an integral part of these statements.

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UTILITY FUNDS CONSOLIDATED STATEMENTS OF Cill.NGES IN FINANCIAL POSITION FOR Tile YEARS ENDED SEPTEMBER 30, 1979 AND 1978 CITY OF ALACHUA, FLORIDA SOURCE OF WORKING CAPITAL Net Income Before Extraordinary Item $( 65,665) $ 92,169 Expenses Not Requiring Outlay of Working Capital:

[ Deprecia tion 126,825 122,853 Amortization of Bond Discount 7,445 4,354 Working Capital Provided From Operations Before

[ Extraordinary Item Extraordinary Item (Note 2) 68,605 219,376 0 ( 63,496)

Working Capital Provided From Operations 68,605 155,880

{ Decrease in Restricted Assets 136,515 206,320 f'

l Decrease in Due From Ice Plant Fund 0 42,001 Proceeds From Revenue Bonds, Series 1978 0 2,990,000 Unamortized Bond Costs of Retired Bonds

{ Proceeds From Revenue and Improvement Bond 0 85,496 Anticipation Notes 500,000 0 Increase in Accounts Pavable From Restricted

[ ' i Assets 22,670 0 TOTAL SOURCE OF WORKING CAPITAL 727,790 3,479,697 USE OF WORKING CAPITAL Fixed Asset Additions:

Utility Plant in Service 651,094 202,163

[ Increase in Miscellaneous Deferred Debits 4,851 0 L Decrease in Accounts Payable From Restricted Assets 0 29,047 Decrease in Contributions 1,029 9,482

( Retirement of 1976 Revenue Bonds and 1974 Revenue Bonds Series A and Series B 0 3,010,000 Unamortized Costs of Note Issue 9,645 140,175 i

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{ (TOTAL USE OF WORKING CAPITAL) (666,619) (3,390,867) l I

INCREASE IN WORKING CAPITAL (BELOW) 61,171 88,830 CHANGES IN WORKING CAPITAL BY COMPONENT Current Assets - Increase (Decrease):  ;

Cash ( 55,180) 54,454 l

[~ Savings and Certificates of Deposit 935,028 80,150 l Accounts Receivable 28,610 ( 12,934)

Inventory of Materials and Supplies ( 35,279) 21,709

( Nuclear Fuel Prepaid Expenses 6,885 895 o 2,431 1,539 Current Liabilities - Decrease (Increase):

[ Accounts Payabic Other Accrued Payables

( 97,005)

( 2,983)

(

(

24,596) 1,523)

Customers' Deposits e 0 ( 9,036)

Due to General Fund 9,464 21,828) f

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[. Current Portion of Notes Payable. (730,800) 0 INCREASE IN WORKING CAPITAL (AB0VE) $ 61,171 $ 88,830 b

Tha accompanying " Notes to Financial Statements" form an integral part of these statements. i o

GENERAL FIXED ASSETS CROUP STATEMENTS OF GENERAL FIXED ASSETS SEPTEMBER 30, 1979 AND 1978

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J CITY OF ALACIIUA, FLORIDA l

l 1979 1978 GENERAL FIXED ASSETS City Park - Structures and Improvements $ 982 $ 982 Old Jail 3,068 3,068 Office Equipment - City Itall 1 23,492 23,301 J City llall 138,852 138,852 Christmas Decorations 3,597 3,597 New Fire Station Sanitation Equipment 69,960 37,292 69,960 37,292

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New Parking Lot - Land 14,939 14,939 Mosquito Spraying Equipment 2,425 2,425 Street Pavings and Sidewalks 274,159 223,855 Streets and Roads - Equipment 9,065 9,065 Fire Trucks and Other Equipment 82,215 54,077 Police Department - Cars and Equipment 17,403 17,403 Land 16,313 16,313 TOTAL GENERAL FIXED ASSETS 693,762 615,129 INVESTMENT IN CENERAL FIXED ASSETS From General Fund Revenues 535,104 456,471 From IlUD Grant Revenues 44,066 44,066 From Federal Revenue Sharing Revenues 114,592 114,592 TOTAL INVESTMENT IN GENERAL FIXED ASSETS $693t7_626 $615,129

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1he accompanying " Notes to Financial Statements" form an integral part of these stat'ements.

NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1979 u CITY OF ALACilUA, FLORIDA NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES Bases of Accounting

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The accrual basis of accounting is followed by the Consolidated Utility Funds.

The General Fund uses the modified accrual basis of accounting. Modifications in such method from the accrual basis follow:

I L Revenues are recorded as received in cash except for revenues susceptible to accrual and revenues of a material amount that have not been received at the normal time of receipt.

Exper.ditures are not divided between years by the recording of prepaid expenses.

I" General fixed assets are recorded as expenditures in the General Fund at the time of purchase. Such assets are p capitalized at cost in the General Fixed Assets Group of L Account.

No depreciation has been provided on general fixed assets.

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Bond Discount and Issue Costs The bond discount and issue costs on Utility Revenue Bonds is being amortized over the life of the bond issues.

Inventories - Consolidated Utility Funds i

Prior to September 30, 1977, inventory was priced substantially at cost using the first-in, first-out (FIFO) method. Inventories after September 30, 1977, are priced using the average unit cost method.

Depreciation I

l Provision has been made for depreciation of Consolidated Utility Funds' fixed assets using the straight-line method. Buildings, water system, electric system and sewer system are depreciated over estimated useful lives of 25 to 40 years.

Machinery, vehicles and equipment are depreciated over estimated useful lives I of 4 to 10 years. -

NOTE 2 - LONC-TERM DEBT l

On April 15, 1978, the City adopted a resolution to issue the Utilities Refund- l 1

l ing and Revenue Bonds of 1978. These bonds were issued to finance the cost of l

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refunding the City's Utilities Revenue Bonds dated April 1,1976, and the Utilities Revenue Bonds, Series A and B, dated April 1, 1974. {

1 Net revenues, utilities service taxes and certain special assessments are pledged as collateral for the revenue bonds which have a coupon rate ranging from 5.85% to 6.401. The bond ordinances required the establishment of a sinking fund to meet debt service requirements, a reserve account to pay only interest and principal if sinking fund monics are insufficient and an operation and maintenance fund to pay operating expenses. Operating revenues from the l utility facilities must be disbursed in the following crder:

(Continued)

I NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1979 h

CITY OF ALACllUA, FLORIDA (Continued)

NOTE 2 - LONG-TERM DEBT (Continued)

A. To meet operating and maintenance expenses before depreciation.

B. To satisfy debt service requirements.

C. Any remaining funds are to be transferred to the reserve account.

D. If balance of reserve account equals or exceeds $212,036, any sur- l plus funds may be used for the purchase or redemption of bonds or e any other lawful municipal purpose.

The $2,990,000 issue of 1978 consist of $975,000 of Term Bonds and $2,015,000 of Serial Bonds which mature as follows:

l PERCENTAGE FISCAL YEAR ENDED COUPON SEPTEMBER 30, AMOUNT RATE 1991 $ 80,000 5.85 1992 85,000 5.95 1993 90,000 6.00 l 1994 95,000 6.05 g 1995 105,000 6.10 3 1996 110,000 6.20 1997 115,000 {

6.20 g 1998 130,000 6.25 1999 135,000 6.25 5 2000 145,000 6.30 2001 150,000 6.35  ;

2002 160,000 6.35 2003 160,000 6.40 l 2004 170,000 6.40 2005 175,000 6.40 2006 110,000 6.40 TOTAL SERIAL BONDS 2,015,000 l E

2007 - TOTAL Tele! BONDS 975,000 6.40 g TOTAL LONG-TERM DEBT $2,990,000 On May 30, 1979, the city adopted a resolution to issue $730,800 Utilities Revenue Bonds, Series 1979, anticipation notes. The purpose of these notes was to provide immediate funds for the commencement of the project of acquiring l and constructing extensions and improvements to the water distribution facilities as prescribed in the bond resolution adopted by the City on December 4, 1978.

l The proceeds derived from the sale of the bonds are pledged as collateral for l l g payment of principal and interest on the notes.

l g Notes were issued on June 5, 1979, in the principal amount of $730,800 to mature on December 17, 1979, with a 6.0 percent rate of interest.

On September 5, 1979, the City adopted a resolution to issue $500,000 revenue l and improvement bond anticipation notes. The pirpose of these notes was to provide immediate funds for the commencement of the project of acquisition and construction of additions, extensions and improvements to the combined clectric, water and sewer system of the city as prescribed in the bond resolution l adopted by the City on July 2, 1979.

(Continued)

L E

NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1979

{ CITY OF ALACl!UA, FLORIDA (Continued)

NOTE 2 - LONG-TERM DEBT (Concluded)

The payment of the principal of and interest on the notes shall be secured, equally and ratably, by a prior lien upon and a pledge of the proceeds de-

{ rived from the sale of the bonds and, if necessary, by a prior lien upon and pledge of the proceeds of the Revenue Sharing Funds.

{ Notes were issued on September 29, 1979, in the principal amount of $500,000 to mature on April 1, 1982, with a 6.5 percent per annum rate of interest.

Interest is payable on April 1,1980, and semiannually thereaf ter on April 1, and October 1.

NOTE 3 - INSURANCE COVERAGE POLICY COVERAGE POLICY PERIOD USF6G ICCC 62913 General Liability - 07/16/79 - 80 F

$300,000 Bodily Injury

$100,000 Property Damage USF&G BAP 164757 Automobile Liability - 07/16/79 - 80

$250/$500,000 Bodily Injury

$100,000 Property Damage Fire, Theft & $250 Ded. Collision On Designated Vehicles USF6G CEP 107176 $1,000,000 Excess Liability 07/16/79 - 80 USF6G 1-33-3900-651810 Workmen's Compensation -

Statutory 07/16/79 - 80 USF&G MSP 135870 Money & Securities - $5,000 In-side /Outside on City Hall 08/19/79 - 80 USF&G SP 417067 Radio Equipment 09/01/79 - 80 I

USF6G VF 52187 Volunteer Fire Department Members, Accident and Disability 06/01/79 - 80 Zurich 72-45-771 Multi-peril 05/16/79 - 80 j Bond No. FLA 303059 Each Employee $2,500, City Manager, 5 Accounts Receivabic Clerk, and Office Manager $7,500 06/30/80 Bond No. FLA 309481 Office Manager - Bookkeeper I $50,000 12/31/80 NOTE 4 - UTILITY EXCISE TAXES I Utility excise taxes are pledged and are transferred to the Utility Fund in accordance with bond ordinances. The funds are used to meet debt service requirements.

NOTE 5 - UTILITY FUND INVESTMENTS - RESTRICTED I TYPE Investment - Restricted:

LOCATION RATE 1979 AMOUNT 1978 AMOUNT Passbook Savings First National Bank of I Certificate of Deposit Alachua, Florida Central Plaza Bank and 5 $ 20,810 $185,250 Trust Company 6.75 190,425 190,425 (Continued)

_b n

J NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1979 CITY OF ALACllUA, FLORIDA (Continued)

NOTE 5 - UTILITY PUND INVESTMENTS - RESTRICTED (Concluded) ,

% 1979 1978 TYPE LOCATION RATE AMOUNT AMOUNT _

Investments - Restricted:

Passbook Savings First Federal Savings and "

Loan Alachua, Florida 5.5 $ 33,092 $ 32,765 7

TOTAL SEWER INTEREST AND J SINKING FUND $244,327 $408,440 NOTE 6 - CRYSTAL RIVER UNIT 3 The City acquired a .0779% undivided interest in the Florida Power Corporation Crystal River Unit Number 3 "CR-3" on July 31, 1975. "CR-3" is a nuclear generating plant which began generating and transmitting electricity during April, 1977. The City's share of nucicar fuel on hand at "CR-3" was $32,184 and $25,299 as of September 30, 1979 and 1978, respectively.

NOTE 7 - PREPAID EXPENSES Prepaid expenses as of September 30, are as follows:

1979 1978 Prepaid Insurance $11,015 $ 9,026 Prepaid "CR-3" Expenses 3,469 3,027 TOTAL $14,484 $12,053 NOTE 8 - PENSION PL\N The City of Alachua participates in the Florida Retirement System, a defined contribution pension plan covering all employees. Employee contributions were made prior to October 1, 1975, and these contributions are refundable if employment terminates prior to retirement. Pension benefits generally vest after 10 years of service but can not be drawn until normal retirement at age 62 or 58 if 35 years of service has been rendered. Total pension expense was S 30,203 and $26,041 for the years ended September 30, 1979 and 1978, respectively. Contributions are made by the City of Alachua for the Florida Retirement System based on 13% of Police Department earnings and 9% -]

of all other employce's earnings. The City's policy is to fund pension costs accrued. The amount of unfunded vested benefits, if any, has not been actuarial- 3 ly calculated. J NOTE 9 - DEBT SERVICE ACCOUNTS The actuarial requirements at September 30, of the debt service accounts are as follows:

1979 1978 Actuarial Debt Service Accounts $ 94,191 $ 94,191 Actuarial Debt Service Reserve Accounts 212,036 212,036 TOTALS $_306,227 $306 t227 )

Actual Debt Service and Rescrve Accounts $350,919 $j331,287 (Continued) '

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NOTES TO FINANCIAL STATEMENTS g SEPTEMBER 30, 1979 L CITY OF ALACilUA, FLORIDA (Concluded)

{ NOTE 10 - UTILITY PLANT A summary of utility plant in service as of September 30, 1979 and 1978, follows:

1979 1978 Electric Plant $1,570,898 $1,533,201 Water Plant 785,701 554,141 Sewer Plant 2,587,018 2,573,275 Construction Work in Progress "CR-3" 4,670 2,450 Construction Work in Progress - Utility Plant 365,875 0 5,314,162 4,663,067 (Accumulated Depreciation) (773,241) (646,415)

L UTILITY PLANT - Cost Less Depreciation $4,540,921 $4,016,652 NOTE 11 - CONTRIBUTIONS Contributions as of September 30, consist of:

{ Contribution From Customers 1979 1978

$ 856,875 $ 857,904 Contribution From Farmers Home Administration 180,400 180,400

{ Contribution From EDA TOTAL 12,000 12,000

$1,049,275 $1,050,304

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CITY OF BUSHNELL REPORT OF AUDIT SEPTEMBER 30, 1978 N

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um CERTIFIED PUBLIC ACCOUNTANTS

CITY OF BUSHNELL, FLORIDA ELECTRIC UTILITY FUND BA LANCE SHEET SEPTEMBER 30, 1978 AND 1977 ASSETS 1978 1977 CURRENT ASSETS:

Cash $ 33,377 $ 38 189 Utility Accounts Re c e iva b le 58,255 51,185 Less, A llowa n c e for Unc olle c tib le Receivables ( 1,064) ( 1,594)

Inventory 9,315 Interest Receivable 905 235 Prepaid Costs (Note C-2) 7,942 1,020 Due From General Fund 300 Total Current Assets 119,030 89,035 RESTRICTED ASSETS:

Debt Service:

Cash 1,095 18,138 Time Deposits 76,353 53,650 /

Renewal and Replacement:

Time Deposit 5,000 5,000 Capital Improvement: ,

Cash 11,928 11,377 Time Deposits 10,000 Construction:

Cash 7,102 6,601 Time Deposits 81,000 81,000 Interest Receivable 2,117 Customers' Deposits:

Cash 10,594 8,899 Time Deposit 10,000 10,000 Total Res tric ted Asse ts 215,189 194,665 UTILITY PLANT IN SERVICE (NOTE C-1):

Utility Plant in Service 474,884 468,195 Less, Accumulated Lepreciation (131,728) (114,506)

Total Utility Plant in Service -

Net 348,156 353,689 OTHER ASSETS:

Bond Discount -

Net of Amortization 20,497 21,522 Prepaid Cos ts (Note C-2) 9, 172 4,078 Total Other Assets 29,669 25,600 TOTAL ASSETS $ 712 ,044 $662,989 i

l The Accompanying Notes are an Integral Part of These Financial S tatemen ts ,

l l 21

, EXHIBIT E LIABILITIES, RESERVES, CONTRIBUTIONS AND RETAINED EARNINGS ,

1978 1977 CURRENT LIABILITIES (PAYABLE FROM CURRENT ASSETS):

Vouchers Payable $ 40,287 $ 38,284 Payroll Deductions Payable 592 57.6 Sales Tax Payable 1,503 1,203 Due to General Fund 2,246 2,224 Due to Utility Isx Fund 2,370 1,606 Due to Water Utii tty Fund 3,300 2,679 Due to Retirement it 2 182 142 Due to Res t ric ted As se ts Bond Payable - Current Portion 10,000 Total Current Liabilities (Payable From Current Assets) 60,~480 46,654 CURRENT LIABILITIES (PAYABLE PROM RESTRICTED ASSETS):

Custumers' Deposits Payable 20,594 18,899 Matured Bond Interest Payable 1,095 730 Accrued Interest Payable 17,408 17,408 Total Current Liabilities (Payable From Restricted Assets) 39,097 37,037 LONG-TERM LIABILITIES:

Bonds Payable (Note C-3) -

Schedule 1-E 490,000 500,000 Total Liabilities 589,577 583,691 RESERVES FOR:

Bond Retirement (Note C-4) 58,945 53,650

. Renewal and Replacement (Note C-5) 5,000 5,000 Capital Imp rovement 21,928 11,377 Total Reserves 85,873 70,027 CONTRIBUTIONS 146,921 146,921 RETAINED EARNINGS (DEFICIT) -

EXHIBIT E-3 (110,327) (137,650) r TOTAL LIABILITIES , RESERVES, CONTRIBUTIONS AND RETAINED EARNINGS $712,044 $662,989 22

SCHEDULE l-E CITY OF BUSHNELL, FLORIDA ELECTRIC UTILITY FUND ,

SCHEDULE OF BONDS PAYABLE UNTIL MATURITY YEAR ENDING 1976 ISSUE SEPTEMBER 30 T OTA L PRINC IPA L INTEREST 1979 $ 44,815 $ 10,000 $ 34,815 1980 44,265 10,000 34,265 1981 43,700 10,000 33,700 1982 43,120 10,000 33,120 1983 47,530 15,000 32,530 1984 46,615 15,000 31,615 1985 45,685 15,000 30,685 1986 44,740 15,000 29,740 1987 48,780 20,0C0 28,780 1988 47,480 20,000 27,480 1989 46,160 20,000 26,160 1990 49,820 25,000 24,820 1991 47,995 25,000 22,995 1992 46,170 25,000 21,170 1993 49,345 30,000 19,345 1994 47,155 30,000 17, 155 .

1995 49,965 35,000 14,965 1996 47,410 35,000 12,410 1997 49,855 40,000 9,855 1998 51,935 45,000 6,935 1999 53,650 50,000 3,650 TOTA L - EXHIBIT E $996,190 $500,000 $496,190 The Accompanying Notes are an Integral Part of These Financial Statement.s.

l 23

EXHIBIT E-1 CITY OF BUSHNELL, FLORIDA ELECTRIC UTILITY FUND STATEMENT OF CHANGES IN RETAIMED EARNINGS (DEFICIT)

FOR THE FISCAL YEARS ENDED SEPTEMBER 30, 19 7 8 A ND 1977 r

1978 *1977 BA LANCE (DEFICIT), BEGINNING OF YEAR $(137,650) $ ( 141,3 92 )

PRIOR PERIOD ADJUSTMENT 6,687 i

ADJUSTED BA LANCE (DEFICIT), BEGINNING OF YEAR (130,963) (141,392)

ADDITIONS: ,

Net Income (Loss) -

Exhibit E-2 36,483 ( 37,258) '

Decrease in Reserve for Bond Retirement 52,377 >

Total Balance (Deficit) and Additions ( 94,480) (126,273)

DEDUCTIONS:

Trans fe rs to Water. Utility Fund Increase in Reserve for Bond Retirement 5,296 Increase in Reserve for Capital Improvement 10,551 11,377 Total Deductions 15,847 11,377 i BA LA NCE (DEFICIT), END OF YEAR $(110,327) $(137,650) l l

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• Restated for Comparative Purposes l

The Accompanying Notes are an Integral Part of These Financial Statements.

24

. EXHIBIT E-2 1

CITY OF BUSHNELL, FLORIDA

\

ELECTRIC UTILITY FUND ,

STATEMENT OF REVENUE AND EXPENSE - BUDGETED AND ACTUAL FOR THE FISCAL YEARS ENDED SEPTEMBER 30, 1978 AND 1977 OVER *A CTUA L (UNDER) PRIOR BUDGET ACTUAL BUDGET YEAR OPERATING REVENUE:

Electric Sales and Fuel Adjustment $465,394 $524,469 $ 59,075 $417 ,5 58 Mis c e lla n e ous 1,000 8,005 7,005 2,321 i

Total Operating Revenue 466,394 532,474 66,080 419,879 LESS, OPERATING EXPENSES -

SCHEDULE l-E-2 409,607 422,209 12,602 358,909 j NET OPERATING INCOME BEFORE DEPRECIATION EXPENSE 56,787 110,265 53,478 60,970 LESS, DEPRECIATION EXPENSE 17,222 17,222 17,209 ,

NET OPERATING INCOME 56,787 93,043 36,256 43,761 ADD, NON-OPERATING INCOME:

Interest Earnings 4,000 11,595 7,595 8,039 TOTAL INCOME 60,787 104,638 43,851 51,800  ;

LESS, NON-OPERATING EXPENSES:

Bond Interest 40,335 30,834 ( 9,501) 40,908 Paying Agent Fees 300 300 450 Amortization Bond Discount 1,025 1,025 978 Trans fe r to General Fund 42,000 35,996 ( 6,004) 39,715 Transfer to Water Utility Fund 7,007 Total Non-Ope rating Expenses 82,335 68,155 (14,180) 89,058 NET INCOME (LOSS) - EXHIBIT E-2 $(21,548) $ 36,483 $ 58,031 $(37,258, i

ORestated for Comparative Purposes l

The Accompanying Notes are an Integral Part of These Financial Statements.

l 25

_. SCHEDULE l-E-2 CITY OF BUSHNELL, FLORIDA ELECTRIC UTILITY FUND SCHEDULE OF OPERATING EXPENSES -

BUDGETED AND ACTUAL FOR THE FISCAL YEARS ENDED SEPTEMBER 30, 1978 AND 1977 OVER ACTUA L '

(UNDER) PRIOR BUDGET A CTUA L BUDGET YEAR S a lkrie s $ 25,737 $ 22,851 $( 2,886) $ 20,429 Power Purchased 339,935 372,056 32,121 303,710 Supplies 41 41 1,727 Utility Tax 1,500 2,076 576 1,361 Vehicle Expense 1,500 1,374 ( 126) 4,113 Renewal and Rep la c eme n t 2,500 ( 2,500) 164 Equipment Repairs 1,000 238 ( 762) 166 Miscellaneous 1,500 525 ( 975) 560 Dues and Subscriptions 2,500 5,398 2,898 2,579 Travel 600 227 ( 373) 262 Payroll Taxes 4,620 1,377 ( 3,243) 1, 30 Engineering Fees 11,000 9,338 ( 1,662) 4,008 Retirement 2,056 2,056 1,581 Bad Debts 400 ( 400) 730 Transmis sion Whee ling 7,730 5,241 ( 2,489) 10,927 Personal Service 700 ( 700) 37 Hospitalization Insurance 1,479 1,479 1,138 Retirement - Past Service 300 300 Iasurance 3,385 3,385 3,023 Ma t e ria ls 3,000 3,576 576 1,275 warehouse Expense 1,700\ 1,357 ( 343) 78A Nuclear Plant Share Contribution 2,448 Office S upp lie s 558 Totals $409,607 432,895 23,288 362,810 Capitalized Expense Charges (10,686) (10,686) (3,901)

TOTAL OPERATING EXPENSES -

EXHIBIT E-2 $409,607 $422,209 $ 12,602 $358,909 The Accompanying Notes are an Integral Part of These Financia l Statements .

26

EXHIBIT E-3 CITY OF BUSHNELL, FLORIDA ELECTRIC UTILITY FUND STATEMENT OF CHANGES IN FINANCIAL POSITION FOR THE FISCAL YEARS ENDED SEPTEMBER 30, 1978 AND 1977 SOURCES AND APPLICATIONS OF FUNDS 1978 *1977 FUNDS WERE PROVIDED BY:

Net Income (Loss) -

Exhibit E-2 $36,483 $(37,258)

Add, Expenses not Requiring Working Capital:

Depreciation 17,222 17,209 Amortization of Bond Discount 1,025 978 Total Funds Provided by Operations 54,730 (19,071)

Prior Period Adjustment 6,687 Net Decrease in Restricted Assets 59,053 Total Funds Provided 61,417 39.982 FUNDS WERE APPLIED TO:

Tra ns fe r to Water Utility Fund Prepaid Costs - Net 5,094 4,078 Net g Increase in Utility Plant in service 11,690 18,036 Increase in Restricted Assets - Net 18,464 Decrease in Long-Term Debts 10,000 Prior Period Adjustment Total Funds Applied 45,248 22,114 NET INCREASE IN WORKING CAPITAL $16,169 $17,868

• Restated for Comparative Purposes The Accompanying Notes are an Integral Part of These Financial Statements.

27

. EXHIBIT E-3

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Page 2 CITY OF BUSHNELL, FLORIDA ELECTRIC UTILITY FUND STATEMENT OF CHANGES IN FINANCIAL POSITION FOR THE FISCAL YEARS ENDED SEPTEMBER 30, 1978 AND 1977 ANA LYSIS OF CHANGES IN COMPONENTS OF WORKING CAPITAL 1978 1977 INCREASE (DECREASE) IN CURRENT ASSETS:

Cash $(4,812) $ 15 ,143 Utility Accounts Receivable - Net 17,600 13,537 Inventory 9,3 15 Interest Receivable 670 235 Prepaid Costs 6,922 1,020 Due From General Fund 300 Total Increase in Current Assets 29,995 29,935 INCREASE (DECREASE) IN CURRENT LIABILITIES:

Vouchers Payable 2,003 11,800 Payroll Deductions Payable 76 68 Sa le s Tax Payab le 300 134 Due to Other Funds 1,447 77 Due to Restricted Assets (12)

Bond Payable -

Current Portion 10,000 Total Increase (Decrease) in Current Liabilities 13,826 12,067 NET INCREASE IN WORKING CAPITAL $ 16 ,16 9 $17,868" The Accompanying Notes are an Integral Part of These Financial Statements .

28

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CITY OF BUSHNELL, FLORIDA r NOTES TO THE FINANCIAL STATEMENTS i SEPTEMBER 30, 1978 7 NOTE A:

SUMMARY

OF, SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2. Bases of Acc ounting The General F'und and Special Revenue Funds (with minor  !

exceptions) record revenues and expenses on the modified accrual basis . Under the modified accrual method, reve-nues are recorded only when received while expenses are recorded when incurred. The Utility Funds record revenues and expenses on the full accrual basis . Under this method,

,.. revenues are recorded when earned and expenses are recorded when incurred.

3. Inventories Inventory for the utility funds are stated at cost.

r 4. General Fixed Assets General Fixed Assets purchased are recorded as expenditures in the General Fund and Special Revenue Funds at time :f

! purchase. Such assets are capitalized in the General kixed I

Assets Group of Accounts .

I J NOTE B: GENERAL FUND - APPROPRIATED FUND BA LA NCE The appropriation is the amount segregated in the next year's budget for the City 's operations. This amount changes every year depending on the budget approved for the subsequent year.

NOTE C: ELECTRIC UTILITY FUND 1

1. Utility Plant in Service and Accumulated Depreciation Fixed assets are stated at cost or appraised value at the time that the inventory of fixed, assets.were made.

The following is a schedule of fixed assets and accumulated depreciation as per classification:

._ USEFUL ACCUMULA TED NET BOOK LIFE BASIS DEPRECIATION VALUE Distribution 25 to 40

~

Plant Years $418,006 $ 96,593 $ 3 21,413

'l~ Land 2,300 2,300 m

Structures and

! Improvements 32 Years 9, 187 3,732 5,455 I$d

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a CITY OF BUSHNELL, FLORIDA NOTES TO THE FINANCIAL STATEMENTS

! SEPTEMBER 30, 1978 NOTE C: ELECTRIC UTILITY FUND (CONTINUED)

1. Utility Plant in Service and Accumulated Depreciation (Continued)

USEFUL ACCUMULATED NET BOOK ,

LIFE BASIS DEPRECIATION VA LUE Transportation Equipment 6 Years S 4,298 $ 4,060 $ 238 Tools, Jhop and Garage Equipment 12 Years 2,246 909 1,337 Power Operated Equipment 10 Years 41,772 24,877 16,895 Communication Equipment 12 Years 2,075 1,557 5 18 l l'

TOTA LS $479,884 $131,728 $ 3 48 ,15 6 i

2. Prepaid Costs The amount of prepaid costs consists.of payments mad e as of the end of the year,to the engineers in connection with the e lec tric rate study and electric p la n t appraisal project.

The cost of the e lectric rate s tudy will be amortized over two years and the cost of the plant appraisal project will be amortized over five years.

3. Bonds Payable The bonds were issued in 1976 and are payable s o le ly from, ,

and secured by, a first lien upon, and pledge of, the gross '

~

revenues of the combined electric and water utility systems.

No bonds have matured since issuance. The bonds consist of $160,000 serial bonds at 5.5% to 6.7% interest rates, due April 1, 1979-89, and $340,000 of term bonds at 7.3%

interest rate, due April 1, 1999.

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I = CITY OF BUSHNELL, FLORIDA p NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1978

, NOTE C: ELECTRIC UTILITY FUND (CONTINUED)

4. Reserve for Bond Retirement The following is a comparison of reserve requirements to actual assets at September 30, 1978.

Actual Assets:

i Cash $ 1,095 '

Time Deposits 76,353-r Total Actual Assets $77,448 Required Matured Interest Payable 1,095 Interest Due October 1, 1978 17,408 Reserve Account (Maximum due in 1999) 53,650 Total Required 72,153 ACTUAL OVER REQUIRED $ 5,295-r

5. Re s e rve for Renewal and R ep la c e me n t l The reserve was established by bond resolution and the moneys can only be used for the purpose of paying the cost o f exten-sions, e n la rge men t s or additions to, or the replacement of

.l capital assets of the systems and emergency repairs thereto,

. or unusua l c os ts of operation and maintenance. However, the balance of moneys on hand in said fund sha'll not be reduced below an amount equal to one-and-one-half percent of the gross revenues of the utilities systems for the previous fiscal year except for payment of the cost of emergency repairs or unusual c os ts of operation and maintenance.

As of September 30, 1978, the City has excess moneys over i requirement.

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i CITY OF BUSHNELL, FLORIDA NOTES TO THE FINANCIAL STATEMENTS l SEPTEMBER 30, 1978 NOTE D: LONG-TERM DEBT The following is the long-term debt as of September 30, 1978:

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INTEREST COLLA TERA L RATE AMOUNT

Florida Bank Revenues 5% $ 37,871 Florida Bank Revenues 5%% 56,401 Florida Bank 1976 GMC 57. 8,493 7-Truck l Florida Retirement System Unsecured 6\% 8,733 TOTA L $111,498 l

NOTE E:

The City is under the State of Florida retirement system. All contributions to the system are paid by the City for the em-ployees' benefit. For all emp loyees , other than police per-l sonnel, the City contributes 9% of the total gross salary and for the police it contributes 13% of their gross salary.

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