ML19347E101
| ML19347E101 | |
| Person / Time | |
|---|---|
| Site: | Saint Lucie, Crystal River  |
| Issue date: | 04/15/1981 |
| From: | GAINESVILLE REGIONAL UTILITIES |
| To: | |
| Shared Package | |
| ML19347E099 | List: |
| References | |
| NUDOCS 8104230420 | |
| Download: ML19347E101 (27) | |
Text
1980 e ANN:JAL REPORT
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Gainesvi:~.e Regiona: Utilities N~
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City Commission Taie of Contents syn af 1 1 - Letter to Owners and Customers 3
2 The System g
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-, 3 Operations 6 Energy Management
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. } ,.- ( MARK KANE GOLDSTEIN ' ~7 Rates i Mayor Commissioner 2 =\_ l Term Expires May 1981 8 Planning
[.2 9 ~ Summary of Projected Results of Operations
, _ .10 Engineering t**' s f' 12 Financial
! -d h 14 Statements of Net Revenues in Accordance -
COURTLAND A. COLLIER with Bond Ordinances Mayor-Commissione Pro tem
\.w', lerm Expires May 19S2 15 Auditors' Report FINANCIAL STATEMENTS j/er* ~ -
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[ ~~( -16 Balance Sheets 18 Statements of Resenue and Expense and b $ (* 1 Retained Earnings t
y M~ 19 Statements'of Changes in Financial Position
' 5.- I AARON A. GREEN
- A .I Commissioner 20 Notes to Financial Statements
- h/ Term Expires May 1981 pm c r ~
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i GARY R. JUNIOR
(-a k Commissioner Term Expires May 1983 rW *. fy' 3 -
T ht b5 C f I/% f 9 I ROBERTA L. LISLE Commissioner P\ . ') V
. Term Expires May 1982
To Our Owners anc Customers The City of Gainesvi!!c's Regional Utilities can look bacls on 19SO as a very challenging year. It was a year which brought a new Cih Manager for the City and a new Deputy City Manager for Utilities;a year which began with
- sharply escalating fuct costs, sluggish sales, declining working capitaf, and interest rates whkh were both high and ursertain. It was a year in which the utilities needed to raise 5155 million to complete major on-going projects. And
,it was a year 'which demanded a concerted effort by electric utilities to develop additional energy conservation plans to meet tav' and aggressive State requirements.
.Through th. combined efforts of all our utilities
- staff, and with the support of the City Commission, we success-ful' i met %se challenges. The financial results of fisca! 1980 recorded total net revenues for the combined systems of ?5.00 J00, well abme proicctions. We were successful in raising all the necessary capital to comp!cte our cur -nt improsement program,includmg the Deerhasen 2 coal-fired generation addition.
Construction progress on the Deerhaven 2 project continues on schedule for second quarter 1981 operation. The first unit train load of coal from West Virgiria was unloaded on site during Nosember to mark the beginning of fuel stockpiling operations.
The close of fiscal 1980 uw the master lif t station and force main under construction to relieve waster;a'.cr treat-ment and collection constraints in the northwest area of the system.
Study and research hase begun on f uture projects such as burning of refuse-derised fuel at the Deerhaven 2 plant and .
production of alcoholitom sludge farming products.
While 1980 was a very challenging y ear for our utilities, we wcre equally successful in meeting those chalknges and achieving our objectises.%e mose into 1981 with many ob>tacles )ct to osercome. But with still greater determina-tion, we shall continue working together for an esen better utilities system for the people it serves.
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ORVILLE W. POW ELL RICil ARD L. HESTER, P.E.
City Manager Deputy City Manager for Utilities
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T,e System The City of Gainesville is located in north central In addition to retai!~ electric sersice provided to Ilorida midway between the Gulf of Mexico and the customers in the City and surrounding urban area, the
- Atlantic Ocean.With an area of 31 square miles and an System provides wholesale electric service to one estimated population of 115,700, it is the largest city customer, Clay Electric Cooperative, Inc. The City has.
in Alachua County. In 1977 the U. S. Department of the authority to serve in all unincorporated areas of the
' Commerce News reported the Gainesville-Alachua County. The existing electric facilities of the System County Standard Metropolitan Statistical Area to be currently encompass approximaieiy 150 square miles the 15th fastest growing area in the nation. (one-sixth) of the County and 70 percent of the County's population.
Pursuant to ts Charter, the City of Gainesville owns _
and operates i combined utilities system (the System) Power is supplied by two System-owned oil /gn fueled' which prosid< s the City and certain unincorporated generating stations-John R.. Kelly (JRK) Station and areas of Alachua County with electric, water, and . Deerhaven Station-having a combined capability of
-wastewater setsice.. 252,200 kilowatts (LW). In addition, the System owns an 11,620 kW share of the Crystal Riser 3 nuclear The City is goserned by five Commissioners, ezch ' powered unit. All of the System's power requirements are provided from these three stations sia a 138-
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elected for a 3-year oserlapping term, who have the sole authority to set the lesel of rates and charges of kilovolt (LV) transmission network and two inter-the System. connections with Florida. Power Corporation. An additional 235,000 kW of generating capacity will be Prior to December 19,1979, the System had operated provided, beginning in 1981, by Deerhasen Unit 2, a for 7 ycars under an interlocal Agreement between the coal-fired unit under construction.The f. resent trano City and Alachua County which established a joint . mission network consists of 80.9 circuit miles of Gaineuilie Alachua County Regional Electric, Water, 138 kV and 2.6 circuit miles of 230 kV line. Five and Sewer Utilities Board as the System's goserning major substations connected to the transmission body. On December 19,1979, the Interlocal Agree. network serve its 12 kV distribution network. The men: was cancelled in settlement of litigation between distribution system includes approximately 1,300 the C.ty and the County. . circuit miles of overhead lines and 200 cabfe nifes of undergnund system.
The Unhersity of Florida, employing 14,3S5 people at -
an annual payroll of $190 million,is tne most signifi- Water sales in 19S0 were 4,875,000,000 gations to an cant factor in the City's economy. During the 1970's, annual average of 27,550 customers, for net resenues enrotiment at the University increased by one third, to of $3,001,000.
32.000 students. Medical institutions also proside a maior impact on the City's economy and combine to The water system consists of 14 water supply wells, proside one of the largest educational and medical two treatment plants (one of which is presently on t ' complexes in the South. : standby), possessing a combined average day capacity of 43.5 mi!! ion gallons per day (mgd) and a peak da)
- Light industry is having an increasing impact on the capacity of 55 mgd, three ground storage reservoirs City's economy, as evidenced by the recent establish- prosiding 11 million gallons of storage capacity, two ment of manufacturing facilities for Bear Archery elevated storage tanks providing 1.5 million gallons of C- ~v and a three state regionat office for Nation- elesated storage capacity, three high sersice rep ~rq; M' insuurs c Compen. IBM he recently esercised stations, and 423 miles of transmission and dbt:ibution s options on 1,500 acres of land near Gainesville and has mains.
secured reioning and engineering studies for light industry. The number of wastewater customers in 19S0 aseraged 24,501 for the 12-month period, with net resenues of Net resenues from electric service in 1980 were 52,638,000 for a wastewater flow of 2,895,000,000 519.442,000. The average number of retail consumers gallons.
during the year was 41,159-nearly 90 percent of whom were cesidential customers. Energy sales totaled The wastewater system includes gravity wastewater 857 9 gigawatthours (gWh), with retail sales account- co!!ection systems, force mains and pumping stations, ing for 90 percent of that amount. and two major wastewater treatment plants with a
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.,.,, .. % combined capacity of 14.5 mgd. Extensise new w;aste-M- b,
. I' ",f water additions consistmg of a major force mam, master pump station, and an advanced wastewater i -
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b-M ~g 7 *l "h treatment plant (the "Kanapaha Plant") with a 7.0-mgd capacity were placed in scrdce in December,
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' ,. 1977-The combined utilities are operated by 450 employ ees
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System Planning; and Energy Management and
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Oaerations Major economics were realized at both electric genera- ~ 'fqy' e***?
tion facilities during the year, Modification to lRK .gN-fS N No. 8 generator raiwd its capacity from 49 to *T 7 55 megawatts (mW). The modification, requiring only c' 'ily ^
3 days loss of service,.was achieved at a cost of less M t
,M' , 7, d than $1 per kilowatt of increased capacity. Complete 9
. overhau! of J RK No. 6 was accomplished during 1980, ^ g bt , M; and by utilizing utility system staff, repair costs were - ~
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Modifications to JRK No,7 were completed which 3
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increased its efficiensy b) 2 percent. No. 7 has been ,;
removed from senice for major repairs on the turbine- .,h.
./ vc generator, and userhaul is expected to be comp!cted by p M March 1981. g [j .
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.g]Ny Actisities at the Deerhasen Plant focused on the hiring s d and training of emplo)ces in anticipation of startup of 4./j.. 2 the new coai-fi ed Unit No. ^c Major achievements in [# Q c e~ /
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that program included the esublishmeni of a formal training curriculum .it Santa l'e Commu iity Co lege ,wA': '7* , ,
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^tg and the procurement of a Power P; ant lraining Simu-lator,
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response to productisip enhancement studies mpleted by the Ss stem in 1950, maior changes m g~
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center, premeheduling of mats.af iuues, personnel, and equipment, and increased (rcss-training. During 19SO eser) employ ee within the Transmission and Distribu-9 v 'y 44M _i 's*'-
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tion Construction Division completed CPR certifica- N. . 3. } h H' tion and pofe top and aerial bucket rescue training.
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y- ti - - - - - - As an actise participant in the florida Electric Power du- , - ep':O ' ! ' ' > Comdinating Group (FCG), the System continues to F.%
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'9 , f; annual uvings of more than $20,000. Additional sasings in chemicals for water treatment base been e sperienced.
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4 st '4 Cooperative efforts with the Gainesville fire Depart-ment and water system staff have resulted in the repair 1 .r : ..~ ..:. . ! , : f t _ s ,. ,, e % or replacement of several hur. dred hydrants in 1980
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'. punible the "excicising" of 2,500 water ulses in a cff _ , .. .ply GerN; . m./pr. . % yT.%ghe 7.,4',*~ continuing progam to reduce satse maintenance and m_ . M. A major water line breaks.
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I I'if Ma.jor construction projects for wastewater co!!ection f . _ .h y f, during 1980 were lift station No.100 ano a 16. inch dE
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,A- '.._ L-. %gg M k N. .. u;_ . , 2, g f M.,,_, A major reconstruction project in the System's north-V"" east quadrant to correct overflowing manholes and r- l 'MM "b b .. 4id '%m' . - D. latcrat stoppages was begun daring the year. The total j I_f% 'y , 'fWe g" reconstruction program for this area is scheduled for compiction oser the next 5 years. (,' v', # l'! h *! h ) - . p ,, i N Pye 1l 3 ~ -ty.gs;g "d# M TM.;i j$z g n
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- Water Sold and Wastewater Flow
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W Energy Management Energy consenation and utility information efforts Creation of the Public Information Dhision in 1950 were strengthened in 1980 by the operations of the increased the flow of utility and conservation informa. newfy fo:med Energy Management and Consumer . tion to consumers. Under joint sponw>rship with the . Affairs Department, Strides toward the deselopment of Citizen's Advisory Committee, a series of worLshops ! this department began in 1978 with the appointment was held to solicit consumer input in electric rate of a Citizen's Adsisory Committee on Energy Conser. . design and to explain propowd rate incrcases. Thesc ;
- vation. sessions were influential in initiating an imerted ;
blocL rate for residential customers and plannirg for a , The Department provides technical energy manage- bofuntary Time-of-Use rate to be offered in 19S1. s ment assistance and places strong emphasis on public information and consumer education in all aspects of Our Customer Senice and information Disision : the unifity and its conservation programs, Energy processes applications for senice and requests for. consenation acthities in 1980 included free Residen- billing information. Customers' calls are accommo~ tial Energy Audits, over 700 of which were performed dated through our new " phone center, w hich utilites with the assistance of the Gainewi!le Fire Department; electronic call holding equipment to proside audiotape 40 Energy Effic ent Home Awards to homebuilders; ' consenation messages while caffs are beir's processed. 4 mobilitation of a Special Weatheritation Action Team Computer terminals allow quick response to billing and using CETA workers to weatherite the homes of consumption history requests. l low-income famities; aiid a Government Energy Management program to aid in planning options and Efforts to further comm' unity understanding of the t'olides for conwrvation in gosernmental operations. utilitici and to encourage conservation wi!! continue to be a major thrust of the System. In lune 1950 the Florida Leghfature passed the Florida Energs Elficiency and Conwrvation Act (FEECA), j' which gave the Public Senice Commission authority to establish energy comenation goals for all utilities in the State. Existing programs are currently being espanded in compliance with FEECA. ;
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- COMBINED ELECTRIC, WATER, AND WASTEWATER SYSTEM E Water E Number of Customers 1 CUSTOMERS (Thousands) !
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Rates <tretcrive ocroaru i. i9so) ELECTRIC RATES WATER RATES System planners, wor king with the City Commission's General Service D Energy Consenation Adsisory Committee and other Customer Charge. . . . . $2.25/ month interested citizens, have attempted to provide rate Rate per 1,000 gallons . . ... .50.66 incenthes for cf ficient energy use. The new " inserted blod" structure for residentia! rates, for example. TAXES AND SURCilARGE charges 3 mills less per kilowatthour for the first 750 kWh each month than for consumption ahose that in addition to the base rates set forth abose, City les el. utility taxes are charged for electrical and water sersices to consumers within the city limits. The following electric rate schedules are " base rates" Surcharges, in amounts equal to City utility taxes, are only and do not include f uct adjustment charges. f uel charged to consumers outside the City for these adjustment is an additiona! ch.trge for that portion of serg ices, the cost of fueh u-ed to generate electrkity which is not included in the base electric rate. WASTEWATER (SEWER) RATES Monthly Reidential Electric Rate 5 Charges for use or asailability of wastewater wrsices Customer Charge. .. ... .53.65 are based in part on the amount of water used from the Encrev r~harge per kifowatthour (kWh): City's water system. I to 750 L%h . . $.0255lkWh Oser 750 kWh. . 5.0315lkWh Monthl) Residential Rates Minimum Bili . . Cucomer Charge Winter Months (December through February) (Wastewater is calculated as 904 of City water usage Monthly Non Residential Rates in such month.) Genera: Sen ic e: Non-Demand (Senice where a . $ 1.40 b demand of 50 kW or g cater has not been established) Customer Charge. . . Rate per 1,000 gallons of wastewater .. . $ 1.4 2 Customer Charge. . $ 7.50 Non Winter Months (March through November) Energy Charge ... 5.0410lkWh (Wastewater equals City water usage) Minimum Bill . . Customer Charge b Customer Charge. .. . $ 1, .40 General Senice: Demand (Senice with an established Rate per 1.000 gallons of wastewater . , ,1.4 2 demand of 50 kW hut less than 1,000 kW)a . Maximum Monthly Charge . $ 14.20 Customer Charge. . . .. 513.00 (N wastewater charge for City water uuge in excess Demand Charge. . 54.00lkW of 125?i of the customer's winter aserage or 10,000 for the highest demand established during the gallons, whicheser is less, not including Customer month or 70a of the highest demand established Charge) during the precedine 11 mnnths, whicheser is c eate' Reddential Customers Nat Connected to Wastewater Energy Charge 5.0225/ kh n System, but Suojec t to Rates and Charges Minimum Bill . . Customer Charge plus (Code 2S-59.1lbl). . . . $ 11.62 Demand Charge Customers on Unmetered Private Wells Large Power (Senice with an established demand of Discharging to Sptem more than 1,000 KW)d S ng!c-Family Dwellings . . . .. . . . $ 11.62 Multiple-Family Dwellings. $7,05/ unit Customer Charge. . . . $ 50.00 Customer Charge. . . . $ 1.40b Demand Charge. . . . $3.50/kW for the highest demand established during the Monthly Non. Residential Rate month or 701 of the highest demand established b C ' during the preceding 11 months, whichener is R pe 10 ghtons (955Eity water usage;' gwater. maximum) . . . $ 1.42 Energy Charge $.0171/kWh Minimum Bill . . Customer Charge plus aTh i s category incorporates clauses prosiding for Demand Charge power factor adjustment, primary service discount, primary metering discount, and facilitie<. leasing Electric rate schedules are asailable for customers adiostment. (See Gainesulle Code of Ord nances desiring secunt) lighti r; senise and for customers ' who re eisc energy at 135.04 voin (transmisson b hc n rn monthly bill for these water and wastewater rate categories is the Customer Charge.
P anning Due to the importance of maintaining direct commun-ications with upper management concerning svstem N,et Generat.ion Electn.c System, and corporate planning strategies, the System Planning Department now reports directly to the Deputy City GIG AW ATT llOURS Manager for Utilities. Many of the Department's activities during the year 1,500 'lilSTORICAL PROJECTED - were in response to increased federal and State regula- ~ - - tion. Accomplishments included securing "Public _ Interest Lxemptions" to the Power Plant and Industrial fuel Use Act (FUA) which allow the burning of - increased quantities of natural gn in the System's 1.000 generating plants. In response to the Public Utilities "-" p Regulatory Policies Act (PURPA), the Department _ ; hdd hearings concerning certain Federal ratemaking - i standards and succeeded in obtaining an $11,000 grant to awist the utility in its other PURPA responsibihties. 500 - _ _ ._ _ _ in response to the rapid esca!ation of fuel cost and the resulting underrecmcry of fuel-related resenues, the Department deseloped an alternati$e fuel adjustment formula for the System wh!ch uses projected fuel costs 0 l
~~~"
and "last in, first out" accounting rather than aserage 73 79 '80 '81 '82 '83 '84 '85 historical fuel costs. The new f uel adjustment formula has iesultec in greater stability in the Utility's cash
- Projected net generation for the r'eriod 198185 includes position due to'the closer correlation between the estimates of firm and nonferm interchar se i4'es.
System % fuel cost and its fuel adjustment revenues. The Department prepared necessary forecasts and NOSteWOteI IIedted assisted in preparation of the financing documents awociated with $115,000,000of Utility Resenue Bonds GALLONS (Billions) and $40,000.000 of Bond Anticipation Notes which were sold during the year e a part of the Deerhaen 2 'lllSTORICAL PROJECTED comtruction program. 4.5
~
Cost-of4ersice studies were comt'leted for all three - utilit) y, stems during the year. Rates placed in effect on October 1.1980 for the electric system included an ' -
~
inverted rate for residential customers which is design- 4.0 - ed to promote conservation. The City Commission has agreed to offer voluntary Time-of Day rates early in calendar year 1951. In early 1980, the Department presented to the City 3.5 - - - - -
- Comminion a " Transmission and Distribution Planning Study." which recommended completion of the .
System % 130'LV tramminion loop and con truction of - -I' a ru v dN"Niio- *t.' tion in northwest Gainesville. . I ma: de> p ma roati idection ve currently under 3.0 l ! j ll t t consideration. '78 '79 ago 81 82 'g3 'g4 'g3 Interchange agreements were executed with six utilities in the State, gising the System an interchange contract Net Water Pumped to System with mmt of the utilities on the Florida tranmission grid. Negotiations were also intitiated with the florida GALLONS (Billions) Municipal Power Agency to sell a 10 percent participa-tion in the System's 235-mWcoal fired generating plant tilSTORICAL PROILCTED (Deerhaen 2), which is currently under construction. 6
'The Department osersees the emironmental permitting _ _
activities of the combmed utilities System, Many of the Department's emironmental activities centered around the Toxic Substances Control Act, with the 4 desclopment of a program for the safe management of - - - - - - - 1- pofychlorinated biphenyls (PCB's), a highly toxic subtance used for insufation and heat transfer in electric transmission equipment. , Additional en ironmental efforts in 1980 were - - - - - - - required in nsociation with the construction of i s Deethnen 2 relatis e to ambient air monitoring, iurisdic-tional negntiations with EPA concerning NPDES permits for stormwater runoff ponds, and concerning o hatardous waste regulations as they pertain to the ~ 8 design of the Deerhasen 2 secure landfill. '78 '79 'h0 '81 '82 '83 '84 '85 \ i k
ELECTRIC, WATER, AND WASTEWATER I' STEM Summary of -Projected Resu'ts of Oberations 1981 1986 (Dollars in Thousands) Fiscal Year Endine Scritember 30 1981 1982 1983 1984 1985 1986 Pr jected Gross Revenues;8 Electric . . . .. ................ $64,838 $70,395 $78,540 $84,117 $ 88,191 5 95,420 5,738 6,113 6,653 7,102 7,452 7,870 Wa te r . . . . . . . . . . . . . . . . . . . . . . . . . 5,183 5,766 6,294 6,784 7,275 7,468 Wastewater. . ................... Total Operating Resenues. . .......... 75,759 82,274 91,487 98,003 102,918 ,110,758 Projected Operating and Maintenance Expenses Before Depreciation: 41,392 45,400 '48,564 53,413 57,266 63,266 Electric . . . . ...... ......... .. 2,993 3,236 - 3,500 3,785 -4,094 4,428 Water . . . . ................... 3,060 3,299 3,560 3,840 4,143 4,471 Wastewater. . . .... ....... ... 51,935 55,624 61,03S 65,503 72,165 Tota! Operating and Ma'ntenance Expenses 47.445 8 Projected Net Resenues: 24,995 29,976 30,704- 30,925 32,154 Electric (excludes economy interchange safes) 23,446 Net Revenues for Economy Interchange Sales -8 4,385 4,802 5.867 - 6,175 6,525 23,446 29,350 34,778 36,571 3*i,100 38,679 Total Electric . . . . . . . . . .......... 2,745 2,877 3,153 3,317 3,358 3,442 Water . . . .. ... . . ... . 2,123 2,467 2,734 2,944 3,132 2,997 Wastewater. ............. ... .. 28,314 34,724 40,665 42,832 43,590 45,118 Total Net Resenue. . . . ............. Estimated Debt Service . . . . . . . . . . . . . . . $15,427 $17,830 $22,882 $23,753 $ 24,136 $ 25,056 Estimated Coverage Ratio . . ,,. ....... 1.84 1.95 ' 1.78 1.80 1.81 1.80 8 includes the current Program of Rate Changes. 2 Escludes revenues asweiated with p<oiected economy interchange sales for 19521956 which are included as a part of proiccted Tota! Mt Resenses. 3 Resenues and associated espenses from economy interchange safes for 1981 are included in electric system revenues and expenses. Net revenues from such sales are estimated to be $1,335,000 in 1981. h r I. h-F 9 k
Engineering p-q.y rty'sr]f n; s,'
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T P' ' f Q.~. The Electrical Engineering Department primarily serses
' % :g' as a design groep with the task of prosiding engineering M
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' .?jW M@ expertise to ensure economical and reliable System development and operation. Maior projects designed by l' . M M A ,fa; , j./ h.y!a fi _f e
f3 y# lh the Department during 19SO included the 12-mile section of 13S-kV transmission line with 12 kV distri-e- ' g [, > ,;> eA bution underbuild from *he Fort Clarke substation to k,. i.
~
I Cs Qs...C[j the Deerhasen power plarc. This project, when com-l . Ej " : - % % :my , [ p Q;, - pleted, will close a 138-kV transmission loop around r- :- n. T the City, enhancing System reliability in addit:en to {~y4.-Z%.?M_ (k{. .;;; "")dgt ' 3 providing transmission capacity for the output of w.L' ,- *S Deerhasen 2. k 7g "/sdd " '% ,- }
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,. -J 3 Other electrical engineering design projects included y . , ,0 4- .> .f;l underground distribution extensions for subdisision, Qg.',lL{ ,.w w a, , P7.T C -
apartment, and commercial desetopment, as well as L W. [. - (" + 7 .'N extensive oserhead feeder line upgrading required by load growth and Department of Transportation expan-I" ! sion programs. In addition, a total of 31 underground l.--- [/){ h ", j ,M
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distribution projects in the rapidly growir'g western portion of our System were approved for N d I Lin_ h ~ '"* c. S h2 MM-D The Wastewater Engineering Department, whose des gn 7- ~ 7 ( .. ,y j functions parallel those of the Electrical Engineering
,1.. ~__h.". A. _7y -*
Department, has primary responsibility for coordina-
]y 9m; ' "wr*S M .L d $di.6_. ting project activities with architects, deselopers, contractors, and government agencies. The major water gy "r
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project begun during the scar involsed the relocation
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of water mains along 5.W. 34th Street to accommodate 2h~$7.] %')'9' " f ..ha.,,,, Si "gy; street widening. Begun in February 19S0 at ar,
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e;e r 1 estimated cost of $200,000, the ]roject was completed during the fiscal year. Tj 3; ; E = Tqi ~ fc m
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The Department's Wastewater Division designed, g y ,. y -i' ' I
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~ coordinated, and managed the construction of a A
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-!F 1.2 mgd master lift station near N.W. 34th Street and P* Possum Creek. Construction began in August 1950, (q ggg y1. ....04- a isw.r tr22 . Ji
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J_t liiSiafdia with completion projected for February 19bl. This
$600,000 project includes insta'lation of 9,000 feet of m m .e m , - p 16-inch force main.
7' '<. , . c' , e '. kether project underway in this Division, the Tower
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Road lif t station, includes installation of 17,000 feet of G if ,i lb e C,, ;, t. i 12-inch force main. The project was begun in July l F} z d' jg . . "q?D. _ _, j 1980 at a projected cost of $400,000 and was
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y ) > i : The Engineering Services Department provides com-
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Q- * -- g- . [' puter programming support for other areas;coordina-tion of new service connections with the Cu'.tomer
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.; Service Division; document reproduction and office supply services;and pf acurement of utility easements
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. y ,, and land acquisitions. Major activities in this area in pg
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1980 focused on the proposed 138-kV transmission .p g , = gg 7 .ine route. g ~ 9- - _ a i t i e n
A milestone was reached in mid November by the ~# ~
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Fuels Management Division with the arrival at 0 Y# Deerhaven of the first trainload of coal for electric generation. The coal, provided under contract by island Creek Coal Company, is a high. quality, low- / 7- 'I y _,#6[" sulfur coal suitable for burning in compliance with the q"K 4 ' "b ,
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existing sulfur dioude emission standards and site certification conditions without the need for flue gas q Ay'$ G. , MQ , desuffuritation. The contract provides for an annual ;' - 'e r' delisery of approsimately 450.000 tons. The System's _ Lgir p r-ig - purchase of 110 coat cars wi:1 permit fifty <ar unit . , _ , - c/n~'*/ - n M'
- train deliveries esery 7 to 10 days at a projected 'i' pr delivered est in 1981 of 561.37 per ton. 17n. , yM. f . . & -~ f ,
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No project dun.ng 1950 was of greater significance to our System and its customers than the continuing p __ _ _ _ __y.. construction at De haven Station of generation unit : - No. 2. This 235-mW coat. fired unit a ihe fargest single construction project ever undertaken in Atachua d e + County. .C y y> Commercial operation of the new steam generator, . construction of which began in November 1978, is projected for May 1981. t . [.. f '
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On May 13,1980, Florida's Department of Environ-
. 4 ' W.kW, mentaf Regulation approsed the design of the plant's -, y, leachate control system. A!! major facilities have been L }! M. ,ah-if) f,.
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s F. .InanClal y. ,t Durin:: fiscal 1980, the System recovered from a COMBINED ELECTRIC, WATER, - mid year critical operating budget and ashflaw condi- AND WAST EWATER SiSTEM - tion to a much improved financial status by year-end. Net revenue during the first half of the year was Results of Operations substantially down because retail sales revenue was lower than anticipated, an electric base rate increase ; DOLLARS (Thousands) was delayed by 3 months, and fue' costs were rapidly mcreasmg. 120,000 PROJECTED- .[ c u It!STORICAL 4 < z [e -- Management was able to effect substantive financial 100,000 #e~~~O T- f improvements and contmue its maior capital construc-
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<u tion rinancing program. In March 1980, $65 million of Utilities System Resenue Bonds, Series 1980-A, were issued to fund a portion of the costs of the System'.
major capital construction program, including redemp-80,000 d[ [/ e T E<- tion of $13 million Bond Anticipation Notes (BAN's), 60,000 - '/ /
Fuel
financial condition was the modification in calculation _ N;t Rescru - of the fue' .djustment mi!!ap durgd on a!! retail sales of energy. The modified method is based upon current 0- # , ,- , , f terDeb Serg -} 76'77'78'79'80'81'82'83'84'85'86 l fuel cost as opposed to the presious method which used the average in entory cost of oil and invoice cost l of gas for the second preceding month. The previous ! method resulted in significant decreases in net revenue ! during periods of increasing fuel costs. I Another factor which contributed to the improved , financial status was the substantial reduction in the_ j ;. percentage of bad debts compared to the total number ! of customer accounts receivable. This was achieved l 7 through the application of consistent, aggresive collec-tion practices by customer accounts personnel and is e the first improvement in the bad debt / customer acco' ants ratio in the last several years. PWI des rema:ned relativeiv low for the year, but t% was offset by the drat.:1, increate in efectric interchange sales. Interchange sales increased as a result -c; of persuading the Department of Energy to grant a , < public interest exemption which allows the System to i x burn natural gas in its existing steam generators. j x l A!though the System has historically experienced l 2 financial success, it was known at the beginning of -i 19SO that maintaining this success would be difficult. .) The challenge was met, however, and ultimately the i, financial co~lition was greatly improved. Net revenue increased to $25.1 million, or 17.7 percent oser 1979, and the coverage ratio (net revenue divided by aggre-gate bond sersice requirement) increawd from 1.78 in 1979 to 1.93 in 1980. I p i . 12 y- Revenue Eamed Fisc61980 RESIDENTI AL SALES WAST EWATER $12,275,966 REVENUE GENER AL SERVICE, $5,396,398 LARGE POWER, N AND LIGl' TING SALES S.955 20.369., , -/, $12,975,998 4 'N - ,- , [ 21.52 % v e 9.45% j ?ib _ WATER \ i - ' -N ~ REVENUE V ,/; NN~ ~S Oh5 ~ ' $5,695,620 . x, /,,/ .l fi.W" - d'l / 30.27% OTilER x.N l . -BULK POWER SALES N $3,058,723 OPER ATING REVENUE . ,) $2,640,356 / - ./ FUEL ADJUSTMENT REVENUE $18,247,162 O Electric System Resenue O Water System Revenue O Wastewater Sistem Resenue Revenue Allocated Fiscal 1980 DEBT SERVICE $14.026,020 TRANSFER TO UTILITY N ^ " W ASTEW ATE R OAM LAl ENSE / lU D y% / 8.55% $5,153,274 WATER OAM EXPENSE N( _ . V $2,694,314 ,. vey ' ' " - j y : 7,33g 'N. !-) ?'- 11.95 L :! f: TRANSFER TO N GENERAL OTilER ELECTRIC , ( p~ee.~ N s . Dw-I415g ^ "~iGOVERNMENT $4,450,000 O&M EXPENSE N. $7,202,S46 -3 37 419', p M R MOM A g .] . ; j $1,425,025 \ -W ] . y . s'h.; uc. ; ' ' . O Operating and Maintenance Expense ~ E3 Debt Service Transfer FU L PURCH ASE POWER C Transfer to Utility Plant improvement Fund O Transfer to General Gosernment -7 C3 Miscellaneous ) CITY OF GAINESVILLE, FLORIDA COMBINED UTILITY FUNDS Statements of Net Revenues in Accorcance Wit, Bonc Orcinances FISCAL YEARS ENDED SEPTEMBER 30,1980,1979,1978,1977, AND 1976 1080 1979 1978 1977 1976 Gross Revenues Sales of Electricity. . . . . . . . . . $46,557,819 $ 34,318,322 $33,386,372 $31,003,244 $28,234,498 Other Electric Operating Revenue 1,214,010 1,104,021 985,028 1,210,463 858,429 2 1,426,346 1,377,676 917,608 560,478 524,959 Interest income-Electric fund 49,198,205 36,800,019 35,289,008 32,774,185 29,617,916 Gross Electric Revenues . . . . Sales of Water. . .. .... 4,290,546. 4,151,344 4,236,227 3,900,255 - 3,738,562 Other Water Operating Revenue'.. 1,048,674 933,316 1,017,303 1,085,583 849,965 356,400 234,025 135,544 156,459 149,151 Interest income-Water Fund2 . Gross Water Revenues ..... 5,695,620 5,318,685 5,389,074 5,142,297 4,737,678 Sewer Service Charges . . . . .. 4,576,134 4,233,476 4,056,051 3,000,516 3,028,092 Other Sewer Operating Resenue' 607,863 629,771 520,789 510,151 363,4S7 interest income-Sewer Fund2 . 212,401 177,730 145,197 105,148 82,433 Gross Sewer Revenues . . , . . . 5,396,398 5,040,977 4,722,037 3,615,815 3,474,012 ~ Total Gross Revenues. . . . 60,290,223 45,400,119 41,532,297 37,829,606 .... j7,159,681 Operating Expenses Before Depreciation and Amorization Electric Fund: Operations and Maintenance . . 26,009,166 17,134,128 16,173,510 16,479,032 16,039,797 Administrative and General' 3,747,490 3,599,122 3,596,485 2,856.682 2,317,987 1 Electric fund Expenses . 29,756,656 20,733,250 19,769,995_ 19,335,714 18,357,784 Water fund: E Operations and Maintenance . 1,453,048 1,416,268 1,296,614 1,492,901 1,677,255 Administrative and General 8 1,241,266 1,229,997 1,240,303 1,145,904 79S,926 Water Fund Expenses. . ... 2,694,314 2,646,265 2,536,917 2,638,805 2.476,181 Sewer Fund: Operations and Maintenance . 1,532,969 1,423,068 1,290,687 1,010,760 1,387,786 Administrative and General' 1,224,965 1,040,079 1,039,431 955,454 610,586 e - Sewer fund Expenses. . . . . . . _ 2,757,934 2,463,147 2,330,118 1,966,214 1,99S,372 (Tota! Operating Expense Before Depreciation and Amortization). . (35,208,904) (25,842,662) (24,637,030) (23,940,733) (22,832,337) %: Reseques in Accordance with Bond Ordinances Elec tric . . . . . . . . . . . . .. 19,441,549 16,066,769 15,519,013 13,438,471 11,260,132 Water . . ... .. . 3,001,306 2,672,420 2,852,157 2,503,492 2,261,497 Sewer , . . . .,.. . ... 2,638,464 2,577,830 2,391,919 1,649,601 1.475,640 Total Net Revenuesin Accordance with Bond Ordinances . . . $25,081,319 $21,317,019 $20,763,089 $17.591,564 $14,997,269 Debt Service. .. .... . .. $13,014,202 $11,995,160 $10,925,411 $ 9,343,235 $ 7,439,540 Coverage Ratio. ........ . 1.93 1.78 1.90 1.88 2.02 ' Other water and sewer operating revenues include certain connections charges as revenues in accorJance with bond ordinances, which is not in accordance with generally acupted accounting principles, 2 interest income does not include $6,436,485 in 19SO, $3,392,837 in 1979, $1,071,871 in 1978, $557,793 in 1977, i and $871,274 in 1976, for interest earned on investments in the construction trust funds and in certain debt
- . senice accounts which can only be used for restricted purposes in accordance with bond ordinances.
3 Charges for an inventory of utility plant properties are expensed in full above in the period incurred in accordance ' with an interpretation of bond ordinances by the City's legal counsel.These charges are reflected on the financial statements which are in accordance with generally accepted accounting principles as deferred debits and are being amortized over 10 years. - p.hm M AucitorsReaort PURVIS, GRAY AND COMPANY ,,,,,,"*""",i,,,, Ccnririco s>usuc ACCOUNTANTS ,_ "","_*" Casevr4so Pusuo AccouwTaNTs POST OFFICC DOX 999 222 NORTMEAST 157 STREET gNorrivTse car "~* ^~ , oSE.cr, E.'"2.*.7 . **"""****"'^"*^***** ******"*****"""" GAINcSVfLLc. FLORIDA 32602 !!onorabic City Commission City of Gainessille, Florida We base examined the financial statements of the Combined Utility Funds of Qc City of Gainesville, Florida, for the fiscal years ended September 30, . 1980 and 1979, listed in the foregoing Table of Contents of this Annual Report. Our examinations were made in accordance with genera!!y accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary under - the circumstances. In our opinion, the financial statements of the Combined Utility Funds referred to above present fairly the financial position of the Combined Utility Funds of the City of Gainesville, Florida, as of September.30,1980 and 1979, and the results of its operations and changes in its financial position for the years then ended, in conformity with generally accepted accounting principles apolied on a consistent basis, Our examination was made for the purpose of forming an opinion on the. basic financial statements taken as a w hole.The statements of net revenues in accordance with bo,d ordinances are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the examination of the basic financial statements. Except for the reporting of certain revenues in accordance with the City's Trust indenture, which is a departure from generally accepted accounting principles, this information,in our opinion,is fairly stated ir, all material respects in relation to the basic financial statements taken as a whole. Purvis, Gray and Company December 30,1980 15 i =,. - _ . CITY OF G AINESVit.LE, FLORIDA . COMBINED UTif T.8 FUNDS Balance $heets SEPTEMBER 30,198u AND 1979 ASSETS 1980 1979 Current Assets 475,103 Ca sh . . . . . . . . . . . . . . . . . . . . ................. . $ 2,269,801 $ Accounts Receivable (Net of Allowance for U.icollectible 6,612,539 5,762.381 Accounts; $610,955 in 1980 and $939,268 in 1979) . . . . . . . . 76,829 2,919 Due from Other Funds . . . . . . . . . . . . . ..... . ...... 16,591 Prepaid Expenses. . . . . . . . . . . . . . . . . . . . . .........., 2,243 - 2,230,840 2,717,037 Fuel and Supplies inventories . .............. ...... Settlements with Fuel Suppliers. . . . . . . . . . . . . . . . . . .... ; 667.484 1,219,931 11,859,736 10,193,962 Total Current Assets ........... .................. Restricted Assets - Capital Facilities-Cash and imestments . . . . . . . . . . . . . . . . . 568,454 424.247 175,351 ~ 136,247 Utility Deposits-Cash and Investments . . . . . . . . . . . . . . . . . . 47,082,172 21,851,912 .. Debt Sersice-Cash and investments ................ . Construction Trust Funds: 39,904,6*9 21.736,804 Cash and Investments. . . . . . . . ............ ....... Utility Pl ant improvement Fund: 92,866 122,505 Cash, Investments, and Receivables. . . . . . . . .......... 2,154,297 2,174,343 Materials inventories . . . . . . . . ....... ............ 71,809,944 64,613,946 Total Restricted Assets. . . . . . . . . . ................ . Utility Plant 117,941,497 115,0S6,952 Electric . . ...... ..... .. . ..... ....... 39.346,006 41,097,786 Wa ter . . . . . . . . . . . . . . . . ....................... 36,581,701 34,104,725 S e w er . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... ....... 20,943,102 Completed Plant not Classified. . . . . ........... .. . 20,686,117 216,307,101 209,480,785. (54,660,063)- (49,34,,22S) (Accumulated Provision for Depreciation and Amortizatior.). . . . 161,647,038 160,135,457 - Construction Work in Prcy:ress. .. . ........ . .. . 135,S15,571 70,936,324 297,462,609 231,071,781 Total Utility Plant-Cost less Depreciation and Amortization . . . . Other Assets 374,333 309,962 Miscellaneous Deferred Debits . . . . . . . ................ 1,408,500 Settlements with fuel Suppliers . . . . . . . . . . . . . . . . . . . . . . . 704,250 1,078,583 1,718,462 Total Other Assets. . . ......... .,. . .. .. . ... . $382,210,872 $307,603,151 Total Assets. ....................... ............ The accompanying " Notes to Financial Statements" form an integral part of these statements. 16 m LIABILITIES, DEFERRED CREDITS, AND FUND EQUITY 19S0 1979 Current Liabilities Payab:e from Current Assets: Accounts Pay able . . 5 3.510,5S4 $ 3142,'R1 Accrued Liabihties. . . 494,852 324,101 I,le to Othu funds, , 703,496 791,555 4,70s,932 4,257,S57 Pa3 abie from Restricted Assets: Utility Deposits. . . .. 1,251,019 1,254,904 Accrued Interest Pasab'e ... . . . . . . . 8,461,557 4,109,466 Construction Trust Funds -Accounts, Contracts, and Retains;es Pasab'e ... , 9,149,009 3,3S4,699 Utilit3 PUm improsement Fund--Accounts and Tases Pavane and Doc to Otber Funds . . 117,600 395,346 18,979,185 9,144,415 Total Current LUbiHties . . 23,6SS,117 13,402,272 Long-Term Liabilities Uti:ities 5s stem Resenae Bands Pa3able - 215.000,000 150,000,000 Bond Anticipation Notes Payable. . 37,000,000 50,000,000 (Unamortiicd Bond Discount) . . . (1,575,903) (70s,319) Total Lorg Tctm Liabilities. . 250,424,092 ~ 199,291,6S1 Deferred Credits . 2,020.715 2,625,431 Totat Liabilities and Deferred Credits . 276,132,924 215,322,384 Fund Equity Contribution 3 in Aid of Construction: UtiUts Plant Contributed by Municipatity 3,974,496 3,974,496 Federal Grants in Aid of Construction. . . 12,109,667 12,131,631 Contribut ,m f - Coctameu and Desciopers: P. r1(, n: i+ - s 14. ,,160 12,436.257 I ront i . Ap. W i uni.ai,atian, and Od.er Connections Charges . . 10,905 S94 10,141,441 Capital Faci!it 1 Charges 3,507,54S 2,637,471 Totaf Contributions in Aid of Construction . 45,133,765 41,321,296 Retained Earninge Resencd f or Ddt Senice. . 3S,620,615 17,742,446 Unappropriated. . . 22,323,56S 33,217,025 Tota! Retained Earnings . . . . . . . . . 60,944,183 50,959,471 To il fund Equity. . . . . . . . . . . . . 106,077,948 92,280,767 Total Liabilities, Deferred Credits, and Fund Equity . . 53S2,210,S72 5307,603,151 s The accompany ing " Notes to Finans;ai Statements" form an integral part of these statements. / r CITY OF GAINESVILLE, FLORIDA , CO.',1BINED UTILITY FUNDS Statements of Revenue anc Exaense anc Retained Earnings FISCAL YEARS ENDED SEPTEMBER 30,1980 AND 1979 1980 1979 Operating Revenues Sales of Electricity. . . . . . . . . . . . . . ................ 546.557,849 $34,318,322 Other Electric Operating Revenue. . . ........ ........ 1,214,010 1,104.021 47,771,859 35,422,343 Sales of Water. . .... ...... . .. ... ...... . 4,290,546- 4,151,344 Other Water Operating Revenue. ............. .... 86.741' 80,409 4.377,287 4,231,753 Sewer Senice Charges . . ... .. .... .............. 4,576,134 4,233,476 Other Sewer Operating Revenue. . . . . . . . . ............ 6.340 7,426 4,582,474 4,240.902 Total Operating Revenues. .... .... . ..... .. .. . 56,731,620 43,894.995 Operating Expenses Before Depreciation and Amortization Electric Fund: Operations and Maintenance . . .. ... . ...... .. 26,009,166 17,134,12S Administrative and General . . .. . . ... ....... 3,747,490 3,599,122 29,756,656 20,733.250 Water Fund: Operations and Maintenance . . . . ........ .. . .... 1,453,048 1,416,268 Administratise and General. ... .... . .. .. 1,241,266 1,228,957 2,694,314 2,645,255-Sewer Fund: Operations and Maintenance . . . . . .. .. .... 1,532,969 1,423.068 Administrative and General . . . . . .. .... ....... 1,224,965 1,039,537 L- 2,757,934 2.462.605 (Total Operating Expenses Before Depreciation and Amortization) (35,208,904) (25,841,110) Opera'.,ng income Before Depreciation and Amortization . . . . . . 21,522,716 18,053,8SS L (Depreciation and Amortization) . . (5,443.726) __(5.673.738) Operating income . . . . . . . . .. . . ... .. . .. = 15,848,978 12,610.162 i Non-Operating Revenue L,m c s: . . . . . . 8.431.632 5,152.268 Non-Operating Expenses Interest...... (9.774,823) (9,022,892) t- ... . . .... .. . ...... .... 0 Loss on Sale of Land . . .... . .. ... ... (71.075) (Total Non-Operating Expenses) . . . . . . .... .. ... (9,545,b96) (9,022.592) Income Before Estraordinary item and Operating Transfer . ... 14,434,712 8,769,538 Extraordinary item-Gain on Adsance Refunding of Lc.ng-Term Debt 0 4,888.101 Income Before Operating Transfer . . . . . . . . ... ... . 14,434,712 13,657,639 (Operating Transfer to General fund) . . .. . .. . . . . . . (4,450,000) (3,950,004) Net income Retained. . . .. ... ..... ... .. .. .. 9,984,712 . 9,707,635 Retained Earnings, Beginning. . ....... ...... ........ 50,959,471 41,251,S36 9, Retained Earnings, Ending . . . . .................. $ 60,944,183 $50,959.471 E j 'lhe accompanying " Notes to Financial Statements" form an integral part of these statements. v 18 .( e CITY OF GAINESVILLE, FLORIDA COMulNED UTILITY FUNDS
- Statements of C,anges in Financia Position ^ '
L FISCAL YEARS ENDED SEPTEMBER 30,1980 AND 1979 L 1980 1979 s Source of Working Capital Income Bef ore Extraordinary item. . .............. . . $ 9,984,712 $ 4,819,534 Items Not Requiring Outlay of Working Capital: Depreciation and Amorsization .. ......... .... ... 5,974,420 5,791,578 ~ Working Capital Prmided ftom Operations Before Extraordinary item . . . . . ... .. . .... . . 15,959,132 10,611,112 Extraordinary item . . .. .......... . . 0 4,888,101 Working Capital Provided from Operations. . .... . .. ... 15,959,132 15,499,213 Land Sold . . ... ...... . . ....... 149,175 0 Contributions in Aid of Construction . . ... . .. .... 3,812,469 5,969,124 increase in Current Liabilities Pa)able from Restricted Aswts . - 9.834,770 6SS,372 (Increase) Decrease in Misce!!aneous Deferred Debits . . . . ... (92.053) 255,355 Decrease in Settiements with fuel Supplier 5 (Long-Term) . ... 704,250 1,408,500 Procceds of Long Term Liabiliiies. . . . .. .. . 65,000,000 150,000,000 Materials Sahaged and Other . . . . 136,116 10S,663 Total Source of Working Capital. .. .. . 95,503.859 173,929,227 Use of Working Capital Fixed Asset Additions: Utility Plant in Senice . . . . .. . ..... . . .... 7,585,172 8.9S7.281 Construction Work in Progress. . ... .. 64,879,247 35,228.301 Plant Removal Costs . . . ., ,... .... .. ... 103,709 133,371 Increase in Restricted Assets . .. . . . .. 7,190,998 1,059,041 Long-Term Debt Refunded . . . . . . .. . . 0 128,342,000 Payment on Long-Term Liabilities . .. 13,000.000 179,859 Decrease in Deferred Credits . . . ... .. . .. 607,716 311,372 increase in Unamortized Bond Discount .... . ..... .. 922,318 341,792. (Total Use of Working Capital). . . . . . ........ ... . . (94,289,160) (174,583,017) Increase (Decrease) in Working Capital (Below). . . ... . 1,214,699 ( 653,790) Changes in Working Capital by Component Current Assets-Increase (Decrease): Cash . . . . 1,794,69S 121.557 Ruti> aW- l 'W} . . 850.15S (63S.346) Duc from Other Funds. ...,. . . . . ..... 73.910 (18,31S) Prepaid Expenses. . .. .. ..... .. .... . (14,348) (32,921) Inventories. .. . ... . . . .. .. . (486.197) 360,570 Settlements with I ut! Supplicts. . . . . . ... .. .. . (552,447) 1,219,931 2 - Current Liabilities-Decrease (Increase): Accounts Payable .. . . . ... ...... ........ (36S,383) (1,756,465) Accrued Liabilities. ... ......... .. .. . . (170,751) 95,830 Due to Other Funds. . ... . ............. . 88,059 (5,658) Increase (Decrease) in Working Capital (Above). . . . ... . .. $ 1,214,699 $ (653,790) The accompany ing " Notes to Financial Statements" form an integral part of these statements. w W %s CITY OF G AINESVILLE, FLORIDA COMBINED UTILITY FUNDS Notes to Financia Statements SEPTEMBER 30,1980 +
- 1. SIGNITICANT ACCOUNTING POLICIES Basis of Accounting The Utility f unds are maintained on the accrual basis of accounting. This method of accounting relates costs and espenditures to the period in which benefits of the outlays are receised. It is intended to proside an accurate match-ing of these benefits with associated resenues. Under the accrual basis of accounting, revenues a'e reco;:nized wher:
carned and measurabic and expenses recognized when incurred.The electric, water, and sewer funds are combined .s!ong with all restricted asset accounts since Utilities System Resenue Bonds cross-p! edge the resenues of the three funds to the pay ment of those issues. Imestments in esiments are stated at amortized (ost. This method ad:usts cost for any premium or discount, which is amor-tired o er the investment's maturity. Imentories inventories are stated at cost. Cost for materials is determined using weighted average unit cost. Cost of fuel is determined using the last-in, first-out (LIFO) method in 1950 and using weighted aserage unit cost in 1979 (see Note 2). Obsolete and unusable items are reduced to estimated salvage values. Utility Plant Properts anJ equipment in the Utility Funds are recorded at cost, or estimated original cost where applicable. Maintenance and sepairs are expensed as incurred. The accumulated provision for depreciation is charged with the aserage cost of assets retired plus costs of remmalless saisage salue when normal retirements are made. Derreciation n (omputed using the straight hne method eser a period of years considered as the normal sersice bic of the l property. Such depreciation rates are as follows: Electric Plant: Production Plant 2.222- 4.000% Transmission and Distribution Plant 1.724 - 4.00T6 General and Common Plant 2.000-16.667% Water Plant: Supply, Pumping, and Treatment Plant 2.00t 3.704 % Distribution Plant 21 00- 3.333% General Plant 2.000-16.667% Sewer Plant: Pumping and Treatment Plant 2.326 3.704?$ Collection Plant 2.000io General Plant 2.000 16.667% Comt6 ted Plant Not Classified 0.000- 3.571 f-Construction work in progress is not depreciated until completed and placed intu service. Vacation and Sick Pay The City 's policy is to allow limited vesting of employees' vacation and sick pay. The limitation on sxation is deter. mined by the period of employment. Accrued unused sick lease may be adhd to an employee's length of service at time of retirement for the purpose of computing retirement benefits. Vacation and sick pay are espensed as used. l Utility Resenue Recognition ' Utility revenues are recorded as carned. Such recognition is based upon cyclical monthly billings. Unbilled utility resenues are accrued b.ned on the estimated usage between the last meter reading dates for cach cycle and year end. Such unbilled resenues are included in accounts receivable in the accompanying balance sheet in the amounts of $3.236,529 and $2,3SS,656 for 1980 and 1979. respectively. Fuel adjustment resenues are recognized based on actual fuel costs. Amounts charged based on estimated costs are adjusted monthly for any dif ferences between the i actual and estimated costs once actual costs are known. Such differences are recorded as deferred debits or cl ' ~ until used as adjustments to billings. This method results in fuel adjustment revenue recognition matching actual aHowable fuel costs for any particular period. t Interfund Transactions Interfund tranuctions and contributions are generallv made in accordance with budget ordinances. Interfund transactions and ba'ances, except direct billings for utility services (see Note S) and tran,fers to the General Fund of tne City of Gainewide, are eliminated for the Combined Utility Funds. Interfund loans, except loans between construction trust funds, do not bear interest. 20 i l l inte+est During Comtruction interest during construction in utility funds is capitafiicd on proie(ts based ven interest rates on funds horrowed for comtruction. Capita!i/cd interest is computed based on actual monthh, capital espendituret if interest had not been capita!;/ed, net income for 1%0 and 1979 would ime been reduced approsimatd> 55.959,358 and $ 2,692 012, respec th cly. Amortisation Miscellaneous deicrred debits with 1950 balances of $95,559 and 5163,461 are being amorti/ed on a straight-Une bais oser 10 3 en and 20 ) cars, respecthdi. Unamortized bond discounts and issuance costs are bein; amortized oser the hfe of the bonds udn;: the " interest method.'
- 2. ACCOUNTING CHANGES During 1980. the method of determining the cost of fuel (oiy imentories was changed from the weighted aserace unit to>t method to the last in, first-out (Lil O) method. Al>o, dunng 19SO, thc' method of corr puting fue! afust-ment chJrges we changed to reflect the cost of oil us!ng the LIIO melhOd TJther than the a crac~ unit cost method.
These changes were made to mo r e reaktica!!v recoser on a timd> basis the rep!xement (ost of oilin entories during inflationary penads through fud adius. ment charges. The changes had no effect on the resutts of operatiom for 1950, unse increwed fuet mis a e matched h correspondingly increned f uct adiustment retenues. There is no cumulatise eff ect of the (hargs on the results of oper stion> for prior periods, since fuel adjustment charges are drUned to re;me the cmt of fue! f or any period reprdiew of the in entor) va!uation rnethod used. Imentaries of fuel sa!ued on the LU O cost method were tpproximatc.$ 51.555JD0 less than current costs at September 30,1950,
- 3. SLTTLEMENTS WITH FULL SUPPLILR5 The City, alone with seun other cities (" cities") hn entered into a settlement areement and general mutual release with Florida Gn Transmhsion Compam (FGT) and a settlement agreement and ceneral mutua refene with AMOCO Production Compam ( AMOCOi, both settlement ay(ements dated as of July 12,1977. The witlement areements are summariicd a follow s:
City of Total for Gainenine fi6t Cities Sh rc initial Cash Pa) ment from FGT and AMOCO . . .. . 5 3,000,000 5 SS2,892 Additional Amounts Pauh!e in Either "Inuemental AMOCO Gas" or "Od Equnaieno Pay ments."' fGT... . .. . 7,000,000 1,314.600 AMOCO . . . . s mn non 1 jnl. ton Tout Settleme s.: F GT! \'XO W Om M " W H2 ' The settlement aceements prmide that fGT and AMOCO wilt par the " cit.es" a further arnount not esceeding 515 000,t* t a the t m .a I G1 tA to dttaer 201. mGn MMBT US of "incrementa: ,*sMOCO Gas" to the " cities," at thc mbimum enteed value of 72.S2 cents per MMBTU of shortf all, such pay ments to be mJde at schedu!cd times wahin a fourica period be#nning july 1,1978.The vettfement agreements further proside that I GT anJ AMOCO wi: aim make "oi: couhalena on mints" to the " cities" to the estent that the " Incremental AMOCO Gn" dscrtd to the " cities"in any month is not at leau 72.S2 cents less espemhe per MMBTU than the " cities" aserage cost of oil ddneries in that month until the 20f, mimon MMBTUS of " Incremental AMOCO Gas" are delhered to the " cities," such payments to be made at scheda!cd times within the fourq ear period. Incremental gas safuca at $3N,154 undct the apeement and cash of $1,141,112 hn been recched by the City through September 30,1950. The City's remaining share of paymcnts to be recched is $1,371,734. An arnount of -5667,484 is due by luly 1,1981 fin either " Incremental AMOCO Gas" or cash) and is classified as a current aswt on thc xcompanting ha!ance sheet for 1980. A final pas ment of $7N,250 is dc e by luf> 1,19S2, and is inc uded in "Other Assets" on the accompanymg balance sheet for 1950. - In December,1977, the Cits resohed to pass through to consumers the damages po tion of the settlements by reducing fuel adiostment char ces subsequent to collectiom by the City from the fuel surptiers. Therefore, $1,637,973 for 1950.and 52,625,431 fo< 1970,are included in mkcel'aneous dcterred cred;ts on the accempan3 ing balance sheets and C bt t&n mio income as tud adiustrmnt rescnues at the times and in the amounts such charges are redad to the consumers. 2/ g ... t w
- 4. RESERVES AND LONG. TERM DEBT.
Operating income before depreciation plus certain interest income is pledged on Utilities 5) stem Resenue Bonds. The resenue bond ordinance and trust indenture required the establishment of the following debt service accounts: Arenont Purrwe Interest Account To accumulate sufficient funds to pay all interest coming due on the bonds outstanding after attowing credit for any amounts to be transferred from the Capitalized Interest Account and the Sinkin;; Fund Auount. Principa! Actount To actumu!att sufficient funds to pay principal wming due on serial bond,. Sinking fund Account To accumulate funds for pay ment of amortization instanments coming due on term bonds. Resene Aucunt To accumulate an amount equal to the maximum aggregate bond service requirement coming due on au bonds outstanding dunng the current or ans encin; figal y car. Subord,ruted Bond Auount To accumulate funds suf ficient to pay the debt senice requirements on any subordmated bonds. Resene and Contingency Auount To aaumutaic f unds for cont;ngenoes in an amount perioda.aM) dtterm:ned by the consult;ng engineer of record. Capitatized interest Aaount To recche deposits from bond proceeds or the improsement AGount amounting to interest pas ments due on tends for a specified period during construction of a project not to eseced 18 months following the dait of commercial operation of the project.Tr rnsfers are made from this auount to the Interest Account as interest pay ments come due. Balances in the abme-desciibed debt senice acwunts which are included in retained earning on the accompanving balance sheet, at September 30, were as follows: 1950 1979 5 7,767.489 5 2,606,177 Interest Account. . . . . . . ..... 0 Principal Account . . . . . . . 6 e t t ..o i munt SMS 796 F4963 i 7.39 t.630 If , i tb
- p. t s .t Au 450,937 1,Mi,02o
$uo eJinaitJ bond Aaount . 569,486 Resene and Contingency Account . . 624,265 12,156.055 8,660.597 Ceitaia<d interest Aaoun! . . . . . IJ im El (Amounts Appropriated for Current Interest Pas able) rh E1 9 71 $ 3S.620.6 7 5 517,742.4J6 Totai Resenes Ior Debt Senice . .. . .. le adJition to the abme-described debt service accounts, the ordinances and indenture required the establishment t t a Rewnue i und to collett revenues and pay espenses and on improsement Aucunt which is to be used to make capital improvements to the Utility 5ystem. The City is in compliance at September 30,1950, with transfer require. ments to the improsement Auount. The ordmances and indenture prmide that the Citn g<ess bond senke requirement mas be reduced bs interest inwme with respes t to spWtied i ederal secur; ties that the Lits b unconJ;tiona!h obticated to acqune at a m.n-imum purchase prke undt: wntraa, and bs amounts of deposit in the Capitafired Interest Account f or specified twm As of September 30,1950, future ro,s and net det t sen:u requirements Ido!!ars in thous.mJs). instuding inte<eit 3t 5 F ino.0~.: for Utilite s ss stem Resenue Bonds are: i~ + Fisca! Year Cs ntributions to Gross Cap;talized Interest Ending Seking Fund Debt and investment Net Debt September 30 Principal Interest Account' Service Account Resenues Service 1981 514,669 510,576 525,245 5 9,818 515,427 1982 14,669 5,210 19,879 6,240 13,639 1983 14,669 1,959 16,628 2,130 12,498 1984 14,669 3,022 17,691 2,322 15,369 1985 14,669 3,679 18,348 2,596 15,752 1986 14,669 4,973 19,642 2,940 16,702 1987 14,669 5,546 20,215 3,383 16,S32 198S 14,669 6,034 20,703 3,572 16,831 1959 14,669 5,915 20,584 4,423 16,161 1990 5 2 S90 14,669 389 17,948 4,786 13,162 19'J 1 3,0<iO 14,495 17,555 4,bO3 12,752 1992 3,245 14,309 17,554 4,503 12,751 1993 3,440 14,108 17,548 4,S03 12,745 1994 3,650 13,893 17,543 4,803 12,740 1995 3,550 13,662 17,542 4,803 12,739 1996 4,115 13,415 17,530 4,803 12,727 1997 4,375 13,143 17.523 4,803 12,720 199S 4.t 2 s 12,565 17,520 4,S03 12,717 19'>'> U55 12,558 17.513 4,803 12,710 2000 5,275 12,231 17,506 4,803 12,703 2001 5.620 11,876 17,496 4,803 12,693 2002 6,0 B 11.459 17,459 4,503 12,6S6 2003 6,40a 11,077 17,477 4,803 2 12,674 2004 6.S30 10,632 17,462 4,S03 2 12,659 2005 ',2'3 5 10.15S 17,453 4,803 2 12.650 2006 7,790 9.651 17,441 4,803 2 12,638 2007 S,320 9,105 17,425 4,803 2 12,622 200S 63,795 2 8.511 72,306 2 59,693 2 12,613 2009 h.290 4,30S 12,598 12,598 ?mo W5 3,708 12.583 12,583 2011 9.500 3,065 12,565 12,565 2012 10,175 2,376 12,551 12,551 2013 10,900 1,639 12,539 12,539 2014 11 670 847 12,517 12,517 T otal !215.000 m._-- ' Required for the purch.D.c of federal securities under a forwed supph contract with Citibank, N A , of New York o tS t . . - . rm m v.a., o from Lit knk using the pm ccds of amorti/ation instaliments rzd t o ne .w. A::' ! t.- 2 Assumes partia! optional reJemption of 2014 term bands in 2005, and that early cafi provisions of Federal securities and term bond, are r.ot eserciseJ. In addition to the abme described bonds. the City is liable on bond anticipation notes under credit agreements with Mxgan Guarant) Trust Cepin) of New York and Continental llUnnis National Bank and Trust Company of Chiugo in the principa! arm.unt of 537,000,000. Such notes are (ctuted by a lien on net revenues runior and sub-o dinate to 1% lier b, t %tus 5s stem Resenue Bonds, and a first lien on proceeds of future ules of bonds. The notes bear intercst, . s determined under the credit agreements, not to exceed 7,5L, and mature on March 28,1981. As described in Note 5, these bond anticipation nntes were refunded on Oc tober 1,1950, by the proceeds of Utilities Sistem Resenue Bondt The efore, they are clauified as long-term liabilities on the accompanying balance sheet.
- 5. 5UBSEQUENT EVENT On October 1,19S0 the City closed the sale of $50,000,000 principal amount of Utilities System Resenue Bonds, Series 1950-B 540,000.f 00 poncipal amount of Utihties System Revenue Bond Anticipation Notes, Series 1980.
The Series 1980 B bonds mature at sarious dates from 1990 to 2014, and bear interest from 8.6?! to 9.3t. The 1980 Bond Anticipation Notes m dur c April 1,1952, and bear interest at 72/.1 he proceeds are to be used for the redemp-tion of $37,000,000 pnnupal amount of outstanding bond antiapation notes, the construction of certain utility plant, and dep*ts to the Re u uc Account and Cap;talized Interest Aaount to fund debt service requirements. 23 m $- 6. UTILITY DEPOSITS Normally, assets restricted for payment of utility deposits equal the liability for such deposits. During 1979 and 19SO, however, the City used a portion of such aswts for construction of utility plantc lherefore, at September 30, 1979 and 19S0, the restricted assets for utihty deposits do not equal the utility deposits payabic.
- 7. EXTRAORDINARY ITEM-ADVANCE REFUNDING OF LONG-TERM DEST By resolution adopted June 14,1979, the City provided for the advance refunding of certain of its rnenue cerlif.
icates and bonds outstanding in the aggregate principal amount of $128,324,000 (refunded bonds) by the safe of . Utilities Sy stem Rnenue Bonds, Series 1979, and Special Obligation Bonds. Series 1978. Of $150,000,000 principal.' amount of Utinties System Re enue Bonds sold on June 26,1979. 5114,113.645 was uwd to refund outstand:ng debt and $35,886,355 was uwd to fund a portion of certain planned construction projects including capitalization ] of internt. Specla! Obligation Bonds with principal amount of 180,000,000 were sold concurrently with and as a condition to the issuance of the Utilities System Revenue Bonds. from the refunding proceeds of the revenue bonds, the total proceeds of the Special Obligation Bonds, and an additiona! $12,640,430 in cash progided by the City, monies were insested in United States obligations in an irresocable Escrow Deposit Trust fund.Such United States obligations will maturc at such times and in such amounts so as to prnvide sufficient funds for the payment of maturing principal and internt on the refunded bonds. All interest earned or accrued on the United States obliga-tions has been pledged on and will be used for payment of the principal and interest maturing on the Special Obliga- - - - tion Bands, Series 1976. The Special Obligation Bonds do not constitute a debt or a pledge of the faith and credi the Cit), and in accordance with generally accepted accounting princip!cs, transactions relating to the Special Oh!!gation Bonds are not reflected in the accompanying financial statements.The refunded bonds are treated as
- extinguished debts in the accompanying financial statements in accordance with the defcasance prothion of the '
rcfunded bond,. Simuhaneously with the sate of the new bonds described above, Electric, Water, and Sewer Rn enue Bond,in the principal amount of $50.000,000 were converted to bond anticipation notes under an interim line of credit as described in Note 5, which ef fectisely eliminated all long term debt issued under pre ious bond ordinancn. 4 As a result of the June 1979, adsance refunding, a gain was recognized in accordance with generally accepted .! s accounting prmopics. The recorded gain was computed as follows: 77 u Refunded Debt: $128.342,000 Refunded Bonds . . .. ........ . .... . ... ....... f366.476) " (Unamortiicd Discount) . . . . . Net Carrying Value of Refunded Debt. . ...... 127375.474 Investment in Refunding: Refunding Bonds issued . . . .. . . . . . . . . . . 114,113,645 G Cash and financing Costs Prosided by City . .. 12.684,153
- (Unamortired financing Costs) . . . . . . . . . . . . . . -(2,932,740) f 3.710.425) 1: ' .(Accrued Iraerest Payable on Refunded Debt) . . . .
i' (Net Pccc;Wsitinn Price) . .. . I1701 M A) f fE Gain on Advance Refunding Before 7 S20,84I Ageregation of financing Costs - . .... . ...... . (Elimination of Gain to the Extent of financing Costs) (2932.7Jn) F Gain on Advance Refundmg of Long Term Debt . . 5 4.888.101 P
- 8. INTERFUND DIRECT UTILITY BILLINGS included in resenues are the fotfowing inter fund direct billings for utility services:
1980 1979 4 Revenues Sales of Electricity. . $1,190,769 $ 940,032
- . Sales of Water. . . . . . . 123,540 158,226
' Sewer Sersice Charges 3.178 3.727 q $1,317.487 $ 1,101.9S5 Total Rnenues. . . . . .. 1 24 4 , v_, - - , .._-.~~---.-.-...--_--.-,_.-o . _ , , , - . - . , - , - . . - . . - - . , - _ , , . _ - - , . - _ . ~~ r
- Included in expenses are the following interfund direct billings for utility services:
19RO 1979 Expenses Electric Fund . .... $ 279,200 $ 208,380 Water Fund . . 471,413 448,846 Sewer Fund . . .... Srir, g74 . 444.759 Total Expenses . . . . . $ 1,317.487 $ 1,101.985
- 9. EMPLOYEES' RETIREMEN T SYSTEM Pension Plans The City has two pension plans, which cover a!! cmployees except those managerial employees participating in the Deferred Compensation Plan. The City accounts for and funds the plans
- costs as they accrue, based on the contribu-tion rates determined by the most recent actuarial valuation. The total contributions by the City, including amorti-tation of prior sersice costs, for the years ended September 30,1980 and 1979, were approximately $1,115,000 and
$ 947,000, respective!y. Of these totals, approximately $416,000 and $373,000 was contributed by the Utility Funds in 1980 and 1979, ropectisely. The following information for the plans is as of September 30,1979, the date of the latest actuarial valuation. Actuarial Present Value of Accumultied Plan Benefits Vested . .. $ 16,456,000 Actuarial Present Value of Accumulated Plan Benefits- Nonvested . 4377.000 $25.833.000 Net Assets Asailable for Benefits . . .. . . . .... $16,702,000 Weighted Ascrage Assumed Rate of Return Used to Determine the Actuarial Present Value of Plan Benefits . . . g Deferred Compensation Trust Fund As of January 1,1979, employees in certain management positions were eligible to participate in a defined contribu-tion deferred compensation plan managed by the International City Management Association Retirement Corpora-tion as fiscal agent for the City. Under this plan, the City contributes 6% of an employce's annual salary and employees may contribute either a specified percentage or dollar amount. Total deferred compensation cost for the fiscal years ended September 30,1950 and 1979, for the Utility Funds was approximately $21,000 and $17,000, respectively.
- 10. COMMITMENTS A. The approximate cost to complete construction contracts in progress entered into as of September 30,1980,is
$46,000,000. It is anticipated that additional f uture costs related to projects already underway will approximate $ 16,000,000. These amounts are primarily for construction of Deerhaven Unit 2, a coal-fired 235,000-kW steam-c!cctric generating facihty. B. As described in Note 4, the City has contracted to purchase Federal securities of approximately $47,300,000 from its Sinking Fund Account on a scheduled basis through 1989. C. The City has entered into an agreement with sesen other Florida municipalities who operate oil / gas fired electric generating facilities and who purchase natural gas to operate such facilities from Florida Gas Transmission Company (FGT). The cities are co!!cctise!) resisting the imposition of a new "end-use" gas curtailment plan proposed by the Federal Energy Regulatory Commission on the FGT pipeline system. As part of the agreement, the cities have adopted a policy of internal compensation between themselves that amounts to a voluntary gas ',_ curtailment plan. The proposed "end-use" curtailment plan would not uniform!y affect all of the cities since smaller cities would receise a higher priority for allocation of asailable gas than larger cities. Therefore, to encourage unity in resisting such a curtailment plan, the larger cities agreed to voluntarily compensate the smaller cities when the smaller cities receive less gn currently than they would have received if they had allowed the "end-use" plan to go into effect. Gas deliveries and any resulting internal compensation are monitored and calculated by an independent consulting engineer. It is anticipated that the City will make cash payments to smaller cities under the agreement, and such payment, would be reflected as a cost of fuel and recovered through fuel adjustment charges. The total amount u!!imately to be paid under the terms of the agreement depends on future gas deliseries by FGT and is not determinable. i-L Major Faciities of Combinec Systems , Pv. .\ # La Cros e w' a s. --n. Hign $prings 44 Waldo / s x we. . + r ca.nd .: # a s . ._ , , , 'y. 'f y S. e O ~ g Q 0. W{>\ r l li Od t 6 %=c + d 9 0D gg Hawthorne q' Archer & M. canopy , $ . ~h e h "KN L ) / r x, *v b' X / e i Substat <.n O Generati, System Transmission 230kV 53 stem Transmission 13SkV E Water Treatment Plant a Package Water Plant S Wastewater Treatment Plant
- Package Wastewater Treatment Plant p=
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