ML20042E866
| ML20042E866 | |
| Person / Time | |
|---|---|
| Site: | Crystal River  |
| Issue date: | 12/31/1989 |
| From: | GAINESVILLE REGIONAL UTILITIES |
| To: | |
| Shared Package | |
| ML20042E862 | List: |
| References | |
| NUDOCS 9005030261 | |
| Download: ML20042E866 (360) | |
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To Our Owners and Customers:
Gainesville Regional t!tilities (GRly had another The employees at GRU's Murphree Water Plant excellent Scar, surpauing performance goals in were once again recognized for the excellent bh nearly ever) area of production, revenue, and they have done by winning the "Itest Operated fiscal stability. While continuing to provide some Plant" Award from the Department of of the lowest rates in Ilorida, GRt' was able to Environmental Regulation. With the growing j increase our transfer to the Cityi general fund, demand for water locally and state-wide, and with I while improving the security for our investors record low groundwater levels, GRU is taking the lead in well-field management, water re-use, and f
GRI' has maintamed a " double A,, bond rating trom both Moody's and Standard & Poors '"""""""E*E'"* "I#' 'I**
meaning our hands are some of the most secure also improving the quality of its product by available. liccause the advantages of these select vely grouting portions of some wells, and f avorable hond ratings for our customers are by reducing the chemicals needed to treat the substantial, GRU will seek to maintain them through continued improvements in management floth of GRU's wastewater plants saw important and operations changes during this year, and will continue to bc j Smcc the turn of the century, Gainesville Regional upgraded and expanded in the upcoming years l (ltilities has provided three essential services: The b Mnel PmMon 4ncy awarded electricity, water, and wastewater treatment. As the Main Street Plant its supplemental grant for innovatne technology in a year that saw more the fiscal year ends, GRt' is on the verge of. a most significant expansion of service - the addition of than $10 million in Iederal funds acquired by natural gas distribution services to residential and GRIPS staff.
commercial customers With the impending A new administration building for GRU, to be expiration of a franchise agreement granted by the located near downtown, was partially re-designed City of Gainesville to the Gainesville Gas after the completion of a comprehensive study of I
(:ompany, GRli has been analyzing the benefits of future needs. The four story building will utilize acquiring the company from the perspectives of the latest in office design and energy control the customers, emplo)ces, investors. and technologies. Working drawings are nearing community as a whole. Significant benefits can be completion, with an official ground breaking gained by all parties, and therefore GRt' is expected in early 1990.
proceeding with the acquisition, to be completed in carh 199n' '"" " " ' " " " * ' E*E'#" "" E**#
experienced in 1989, we also had a safe year, with GRt"s customer base has maintained its steady injuries to the public and to our employees well growth rate, including the addition of another below industry standards. GRIFs employees pride 6M clectric customers transferred from Clay themselves in service to the community. . it is 1:lectric Cooperative under the provisions of a this pride in the Utility System we have built that multi-year territorial agreement GRl' also added a we show you in this Annual Report for 1989 significant wholesale customer, the Reedy Creek Improsement District (the utihty company that supplies Disney World)in a trend to increase our -
firm p<mer sales in the future )
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The Electric System The four hundred employees that support GRU's GRU established a Quality of Service Review Electric system are responsible for generating Group to examine methods of improving the electricity, distributing it, and helping to insure reliability of our transmission and distribution this product is used safely and economically. The system. Through the efforts of this group, the reliability of our system is a direct result of utility has now reduced the total outages over a thoughtful planning, state-of.the art engineering, ten month period by 6% and has reduced its
% a dedication to maintenance, but most of all, to momentary interruptions by 12%, giving GRU an employees who have continually demonstrated Average Service Availability Index of 99.98%,
j their commitment to doing their job well. surpassing the industry average of 99.96%, To aid in the technical review of the System's GRU owns and operates two electric generating stations. The John R. Kelly Generating Station, E# **""' "'*" *' ""' located near Gainesville's downtown, has two """""8, Devices on three of our six distribution i oillnatural gas-fired steam units, and threc
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combustion turbines with a net generating unha impnwements in the ystem's reHaMhy capacity of 103 megawatts (MW). The Deerhaven ' '* E #' Generating Station contains one coal fired steam During 1989, a comprehensive study of the unit, one oll/ natural gas fired unit, and two conditions of GRU's electric rights-of way was combustion turbines with a net generating completed. Its purpose was to assess historical i capacity of 334 MW. GRU also owns a 9.9 MW right of way maintenance practices and to share of the Crystal River 3 Nuclear Power Plant, propose alternative methods of improving the operated by I'lorida Power Corporation; The total safety and reliability of overhead distribution generating capability of the system in 1989 was lines. Environmental Consultams, Inc, 1 i MW. recommended several measures that will improve Coal produced 82. i% of GRU's electric clearances between trees and powerlines. A key h generation for the year, and the average delivered ac' tor in any r@t4way pmgmm b cusmma k cost of this fuel actually decreased 1.9% over the *"""* * #"" E "E * '"* E '" ' ' h[ previous year. Natural gas supplied 15ei% of our "' """ 'd * """" E *E "
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M load, with nuclear contributing 2.0%, and oil whh the new dghtm6way tuaintenanc'e praeth es. about 0.2%. ong tenu sadngs wHI resuh fmm tdmming methods better adapted to our foliage conditions, Deerhaven 2, the 235 MW coal unit, set a new the use of contract crews, and the creation of reliability record in 1989, with -1691 hours of incentives that are tied to productivity, continuous operation, making it one of the highest rated powerplants in its class. The Electric e Intdc System once again benefhed fmm q system also set a new peak load of 296 MW on GRU's territorial agreement with Clay Electric August 1,1989, compared with the previous Cooperative. Under this agreement, the year's peak of 282 MW. Coopenthe wlH tmnsfa nmre than 4000 of hs ; members to GRU. During this third year of the i seven year project,66-1 customers were transferred, bringing the total number of transferred customers to date to 1915. Electric Systein Nutuber of Retall Custorners Electric System Energy Sales (Annual Average) x p (Gigawatt flours) o0.000 g - y - * -- 2000 ,
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l GRU passed a major milestone in its pioneering Several enhancements were made to the Plant development work on Geomax, a computerized during the past year. Well Three was examined geographic data management and mapping using advanced analytical equipment to evaluate system, Geomax provides planners, engineers, and areas where improvements in water quality could l . operators with instantaneous information about be made. Ily plugging approximately one hundred l our electric, water, and wastewater systems. This teet of the well-shaft, dramatic improvements in year, the mapping of our electric primary the well's water quality were attained without distribution system, the underground secondary significantly affecting the well's water production. system, and facilities acquired from Clay 1:lectric The information gained in this study will allow was completed, and is now on line through high future well expansions to yield higher quality speed fiber opt!c links from the Alachua County water. Regional Information Center. Future applications will allow engineers to simulate the effects of Data from the recently completed well field study different designs un the efficiency of the entire is also being incorporated into the design of a Supervisory Control and Data Acquisition
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network. The network will allow operators to use GRU's I?lectric system isppd of our training existing and future wells more efficiently by programs that have allowed our operations and reducing drawdown interferences, optimizing maintena_nce personnel to advance through a suc- pump operation, and improving water quality, i cession of learning modules that balance theory thus reducing treatment costs. with practical applications. While our facilities - are among the best in the nation, it is our Preliminary design studies for a sulfide removal employees who are truly state of the art. . .our NM M edifying technology'in - employees are our investment in the future. use at the Utility's Kanapaha Wastewater - Treatment Plant, sulfides can be removed from The Water System raw wata and convuted to Wmass. Es system I will reduce the amount of chlorine currently Gainesville's drinking water is supplied by the added to the raw water for sulfide removal by Murphree Water 'Ireatment Plant which utilizes approximately 66%. eight wells that reach a depth of 530 feet and j yield up to 10 million gallons per day (mgd) of ew strateg es w ch aHow br an inacase in We-fresh water. The treatment plant is a lime loa ng rates of th Mam's mtration systent wne softening facility rated at 30 mgd with 10 million a o exan ne . As a re t, inexpenske mtration j gallons of storage on the plant grounds. GRU's a es w be construmd that can innease the water distribution system includes two elevated an s capa y ten pu('ent. storage tanks with a combined capacity of 1.5 million gallons a,nd approximately 750 miles of transmission and distribution facilities. ! I 1 g Water System Water System Sales v - Number of Customers (Million Gallons) . (Annual Average) g i 40,000 ,, k- - 7000 b- - l
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The Plant's sludge handhng capability was year. GRU supported these restrictions dae to impnned with the instaHation of new process lov.cr than normal aquifer levels in late summer, machinery. The new " polymer-dosing system" llowever, GRU's proactive conservation measures, facilitates the settling of waste solids. T he including the recharge of 1.2 mgd of highly treated construction of vacuum filtration and ofnuent, the installation of approximately 76,000 sedimentation equipment will also help to water conservation deviets, and our puhuc decrease peak loading on existing sludge information campaign have demonstrated GRU's - equipment. These improvements, when coupled commitment to conserving this precious resource. with improvemt.nts in the high service pumping With this commitment, and the fact that our area tiso made during the Scar have imprmed the County's geology allows 300 mgd of natural tritability of the Plant during periods of peak recharge annually, the Water system is in an water comumption. excellent position to obtain approval for Ihr hlurphree Water Plant is stated for some " "'"""'""'"""'""Y""" "'"E '# major additlom in order to meet the water GRtPs Water system continues to lead the state in demands anticipated through the 1990s. Requests sound, safe and professional water management. for qualified firms to plan and design the expan- For the eleventh time since 1977, our hlurphree sion are anticipated to be received in late 1989. Plant was recognized as the District's "llest The Water distribution system continued to see nat ata an y e Mori a D pannwnt substantial growth in 19H9, with the instaHation " "'* "#"'"' #E"'""""'" I # I"E""""I' of 1339 new service connectlons. hlalor a construction projects included two miles of p ytes wlm com nue m guarantee the hea% and f relocation work associated with NW 39th Avenue, stahHhy oNRU's Wata hstem. the installation of approximately 1.5 miles of 20" , ,
- 4) pipe on NI: 53rd Avenue, and several miles of
; The goal of every employee of GRU's Wastewater e' j distribution piping in the high growth Newherry Road and University Avenue areas, improvements r system is to provide a level of treatment that in our methods of tracking the consumption on protects the environment, preserves our drinking large meters and the completion of a meter water sources, and meets the increasingly (hange out program, affecting cmtomers that stringent requirements of regulatory agencies.
account for 80% of our sales, will result in long Gainesville Regional Utilities operates two term revenue increases. wasiewater treatment plants with a combined Alachua County, w hich includes the City of capachy of IM mHHon gaHons per day (mgd). Gainesville, and 16 other counties lying within lloth plants are presently undergoing extensive the boundaries of the ht.,lohn's Rher Water mm ations to betta meet these goak. hlanagement District were included in Phase i Water Conservation Restrictions for mmt of the Wastewater System Wastewater SyMem Number of Customers Billings , (Annual Average) (hlillion Gallons) g gi j 403wui g
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ti T !.ocated in houthcot Gainesville, the Main Street The Kanapaha Plant benefited from an energy l 96"' Wastewater 'Ircatment Plant discharges purified reduction study conducted by Scimac Corpora. l effluent to the $wn: Prater tiranch, a stream tion. Recommendations from this study .I ' which eventually flows into the Alachua $1nk, concerning upgrades to capacitors, enhanced themby making direct connection to a drinking maintenance procedures, and automated aeration water aquifer, control will continue to result in cost harmgs at , Extenske mod!fications to the Plant will comcrt I# ""I *
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the existing trackling filter process into a state of- Important improvements were made te GRlfs the art activated sludge treatment facility. The wastewater collection system during the year. An ! new process will incorporate automated controls. Innow/ infiltration (1/I) initiative resulted in the ' l advanced filtration, and disinfection. The 813.4 identification and correction of 257 situations .l , million upgrade is being funded in part by a $9.1 where_ unwanted water was entering the system. million I:PA grant. Included in the proicot are Due to the success of this program, the Depart.
- cuatinuous upuow backwash filters, which were ment of Environmental Regulation has re rated ,
deemed to be innovative technology, resulting in - GRtrs wastewater system to allow for an increase l the project receiving a supplemental LPA funding - of 700() equivalent residential units. This increase j award of fifteen percent, will offset expansion costs and allow the System 1 to condnue to gmw mut tk inuncWale need The Kanapaha Advanced Wastewater 1reatment for additional wastewater plant expansions. Plant, located in rapidly developing Southwest Gainesville, consistently produces efnuent in addition to the 1/1 efforts,139,000 feet of , meeting drinking water standards. The plant uses bewer was inspected,23,53H feet of pipe was ! an advanced deep bed filtration system and scaled, 466,757 feet of newer was cleaned, and ; automated disinfection equipment. Approximately 16,438 feet of new pipe was installed by GRU. .j 7.5 million gallons per day is directly recharged to other major construction projects completed . the aquifer, recycling this water resource for future lloridians. The plant is the only one of its included upgrades to 1.lfe stations Numbers I,21, and 59, Additionally,56,563 feet of new pipe
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-l kind in the State that has been permitted to installed by developen6 was added to the ;
directly discharge its effluent into the Floridan wastewater collection system. j ' "4" #' The employees of GRLTs Wastewater System - llesides returning purified water to the continue to set standards in the industry. During environment, the methods GRt! uses in managing the 19H9 fiscal year, the prestigious llurke Award j the " residuals" of the wastewater treatment from the Florida Department of Environmental: j process are essential for conserving resources. Prutection was awarded to GRU for outstanding l The Plant uses a treatment process which safety education and training. In a national . .j converts bacteria, grown for the purpose of contest sponsored by the Water Pollution Control i digesting incoming wastewater, into a valuable lederation, GRlPs employees placed in the top I commodity used by the local agricultural ten in all categories of competition. This industry. Ily using the residual product dedication to excellence is standard operating- 3 manufactured at the plant, faimers minimlic the procedure for the employees of GRtTs Wastewater j need for commercial fertiltrer. system. '; 1 A $2.0 million upgrade of the Kanapaha Plant i presently under constructien will improve the ! residuals management program by replacing an 1 inadequate rotating screen with a gravity j thickening process, in addition to providing plant 1 personnel with better residuals application equipment; These improvements will result in a j decrease in treatment and transportation costs..
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The project has been funded with a $1 A million i I:nvironmental Protection Agency Grant and is j( part of the estimated $10.6 million in federal pollution control grant funds acquired by staff 1, 1 1989. ! f j 1 i t
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The financial performance of GRU continued to l'or the third ) car, GRU ogwrated under a formula l cseced expectations, w ith increased sales of to determine the amount of transfer to the City's ; electr.icity. water, and wastewater, and with General Government operations. Ilased on this .! tevenuen higher than budgeted and increasing formula, a tranfer of $13.0 million was made, I over the previous year. representing a 26A% increase over 198H. l The combined net revenuc6 for the fiscal year in f ebruary,19e19, Subordinated Utilitics Revenue j were $56 rnillion, producing a bond coverage bonds in the amount of $100.366,000 wc4 hhrd j ratio of 3.11 (nct revenues divided by aggregate to fund future acquisition and construcuon costs. ! debt service). The total numtwr of retail customers The lionds are insured, as to payment of principal ! for the electric, water, and wastewater 6ystems . and interest, through a policy issued by AMHAC -? increased respectively: 2.9%,2.7%, and 2.H% . Indemnity Corporation. Interest rates on these ! over the precious year. bonds range from 6.40% to 7.25% l 1:lectric interchange sales to other I'lorida utilitich . The 'Ihx F.xempt Commercial Paper (TI:CP) ' .l increased 2.7% with gross interchange salen for program continuch to produce considerable l the year of $13.9 million generating net revenues savings for GRtTs ratepayers The average intercat l to GRtl of $$.6 million. Interchange 6alen to other ute on the outstanding paper was 6.27% for the j utilitics cominue to tw an important part of GRU's year, ranging from a high of 7.$$% in March to a j financial health. Mccognizing the need to provide low of 5 lM% inJanuary. The average maturity of '
-}
Stability to this income source, GRU cntered into outstanding paper was 6H days. Demand for .; firm energy salch agreements with the llorida GRU's commercial paper remained 6trong, and- l Municipal Power Agency (l'PMA), and with the ' credit ratings high, with a PI from Moody's i City of Starke, I'lorida, investor Services and an Al+ from Standard & ! oo Additionally, GRll completed the first year of a # p At the end of the Oscal year, W.H03.000 five year agreement with Seminole f.lectric E "#IE*' *"" ""*""'""8' "*" l H,42,WO fnnu one year ago, j Cooperative (SEC) for the provision of service when SliC units are ofIilne or de rated in Gainesville Regional Utilitics continued it6 "Aa" l capability. These firm and reserve capacity encrity bond rating from Mood (s inventor Services and 1 salch accounted for 6H% of the net revenues from its "AA" bond rating from Standard & Pours, j interchange sales in 19H9. The trend to stabilize maintaining its membership in an elite clash of the j the interchange market will be further enhanced best municipal utilitics in the nation. r when GRU initiates a new ten year agreement with the Rc(d) Creek improvement District for Capital improvement funding for the fiscal } car l 30 Megawatts of firm energy sales, to begin in 19H9 anumnted to M3 mHHon pmvided from _{ yy;y 999,g the bond construction fund. Net utility plant .; increased $3 7 million during the year, to a j The balance in the rate stabilitation (RSF) fund, balance of $3H7.9 million at year's end, i < less accrued intercht, was $19.6 million at the. beginning of the year, in order to stabilize rates, a ainen He Regional UtHhics condnues m be one reduction in the RSF balance of $600,000 was o the nu>st becure invesunents avaHaNc. Our 6 made for the I:lectric system, and a similar employees are pmud m sene GainesdHe whuc j cing a e to pm e anwng the lowest utHhy . amount was withdrawn for the Water system. A ; deposit of $1.3 million was made for the "'"* I" II"'Id"' 1 Wastewater system. The balance, ichs accrued ! interest, was $19.7 tuillion at the end of the year. ;
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Retenor Estned / Fiscal Year 1989 I los tres (,rtu'ral %rrs a e I argrr Pcwor hates for Rosak l lrrtrat kesklential lurl Adnistnernt /' Sales J9 9%
& ( sehrt hower %gits t' o% 5 AM 469 430 I4" bH1 ION
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& Putt hased Power -
I tottru (tther Rotall & 4'holesala 21 h% (l&M i qwnses 201% $ 2' 994 4 4 4 52%94% "A nrhi %t rsis a N % % 1.Irrtta f uel I kptnst -- S10*Hil112 Intert hango 6 4 %
$ N . 214 ,2.41 g Yt'??f. 1 I tit neral f und ~ltanslor 101%
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4'ator (l&M i spenses 3 * % f-. y e;. ' .- c $4 NO2.44% 34 Mastewater O&M i sponses 4 "% I Pil Iransis t 11 " % $6 09'.440 51%046292 working (.apital & E t ywranon and Maintrnanto tO&Mi t spenses 5 "3.0 4.24% ' g ,j 9 s n a ne ht %r,,it t in ubi i42 Il *% E l'tilits Plant ituprintinent f und (1 Pili'tratwirr 1% Osb 292 to 1% C bentral f und 'transfir i 4 029 M* I I 4 ON E MorLing (.apnal and Miste llaneous 'translers 16 HO2 9 42 5 l_2k HH4.4" 2 11
Rates Schedeh: Charges for screl(ci ha offeet at the close of the fiscal year September 30.1989, for major customer classes. Elcetric The following monthly electele rate schedules are " base rates" and include a fuels charge of 25 mills per kilowatt hour The additional s2ri: hic monthly fuel adjustment t.harge is not meluded. The minimum hill is the Customer Charge plus any appliable demand charge. Realdential Customer Charge . . . . . . .. ............$4.$7 I:nergy charge per kilowatt hour (kWh) l'irst 750 kWh . . . . . . . . . . . . . , $0.0630/kWh Occr 750 kWh . . . . . . . . . . . . . 5 0.0668/kWh General $crvlec Non. Demand Customer Charge . . . . ... . . . . . . . 8 9.13 (A demand of 50 kilowatts (kW) I'.nergy Charge . . . . . . . . . . . . . . . . . . $0.0764/kWh or greater has not been established) General Service Demand Customer Charge . . . . . . . . ........ . . $ 15.82 (I:stablished demand of 50 kW, l'nergy Charge . . . . . . . . . . . . . . . . . 50.0540/kWh but less than 1.000 kW) Demand Charge . . . . . . .. . . ... . 5 4.87/kW l.arRe Power Customer Charge . . ....... . . . . . . . 5 60.8 4 (l:stablished demand of 1.000 kW I:nergy Charge . . . . . .. . . . . . . . 50.0473/kWh or greater! Demand Charge . . . . . . . . . ..... . 84.26/kW Water Customer Charge . . . . . . . . . . . . . . , . . . . . . f 2.65 (The minimum hill is the Customer Charge,) Water Rate . . . . . . . . . . !O.75 per thousand gallons , Ws;. tenter Customer Charge . . . . . ..... ...,......$1.94 l (The minimum hill is the Customer Charge.) Wastewater Charge . . . . $ l.86 per thousand gallons ! l i Addu tonal rate w heduin. unitable urun trqunt. indudeci tme.ot-t we raic for etermt tusionwrs, wastewaier raies for rotorntial cusmmen not tunnected to the nptom but subic(t to rain and (hargo, and % astrw ater ratn for rnident tal customen obtaining water f rom unmrtered private wcth and dm hargmg into the optem ! Fiscal Year 19H9 Realdential Rate Comparisons 1000 kWh Consumption
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t t . GAINi;sVit.LI: RLGIONAL UTil.lTil:S The Combined Utility Funds of the City of Gainesville, Florida Report on Audit of Financial Staternents and Supplemental Data for the)vars ended September w,1989 and 1988 Report ofIndependent Accountants The lionorable Mayor and Members of the City Commission City of Gainesville Guinesville, I'lorida 32601 s We have audited the accompanying balance sheets of Gainesville Regional Utilities (the Combine'd Utility I'unds of the City of Gainesville, I'lorida)as of september 30,1989 and 1988, and the related statements of revenue and es pense and retained earnings, and changes in financial position for the yean, then ended. These financial statements are the responsibility of the City's management. Our responsthility is to express an opinion on these financial statements based on our audits. We conducted out audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofinaterial misstatement. An audit includes examining, on a test basis, evidence sup-porting the atuounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant cotimates made by management, as well as evaluating the overall - ' financial statement presentaticn, We believe that our audits provide a reasonable basis for our opinion, in our opinion, the financial statements referred to above present fairly, in all material trspects, the financial position of Gainesville Regional Utilities r.s of September 30,1989 and 1988, and the results ofits opera- , tions and the changes in its financial position for the years then ended in conformity with generally accepted accounting principles. WS l lA Coopers & Lybrand Jacksonville, I'lorida < ba.%t.i J f Davis, Monk. j
. l'arnsworth & Company '
Gainesville, I'lorida December 7,1989 - 13 1 4
' GAtNL5 Nill E RIGIONAL UTillTILS Halance Sheets September 30,1989 arul 1988 Assets 19H9 _ 198N litility plant _ t!!ility plant in service . . . . . . . ..,... .... ... . ., .... ..... 8 527.H14.939 $ ;511,378,063 s
. Construction in progrchh . . . . . . . . . . . . . ..... .................. 10,892,H4 2 10.693.636 538,707,781 522,071,699
- 1. css: Accumulated depreciation I and amortization . . . . . .. ........................ ..... . (150.H06.217) (137,H98,H08)
Ncl ut///typlant. . .. . . ................. ............... .. 3H7.901,%61 3H4.172,H91 ' Rentrlcted anhets: Capital facilities . Cash und investments , , . . . , . ,, ...... ...... . 1,338,139 1,337,769 t!tility deposits . Cash and investments . . , , , . . . . . . . . . . . . .... .... 2,H91,173 2.975.662' Debt Service fund Cash and investments , , . , ,,.......... .... .. 90,677,590 57,47H.37 i Rate stabilization fund Cash and investment 6 . . . . . . . . . . ,,...... 19,729,209 19,691,500 Construction fund - Cakh and investments . . . . . . ...............,.. .. ...... . -99,709,721- 39,993,623 Contracth in progres6 . . .. ,,,, .,..,.....,,.,... 1,059,775 H46,012 Utility plant improvement fund - Cash, investments, and receivahics . , , . .. ... .,,., ,,,. 3,233,808 1,995,729 Total restr/rted assets . .......,,..,, , . ,, .,.., ,...... 218,639.41% 124,318.666 C"rrent anneths Cash and 6hort term investments ,, .. ,,. ....., ........... 19,832,142 12,l.12,307 Decommissioning reserve Cash and investments . . . . . . .........., 672,481 467,687 Water pollution emergency reserve Cash and investments . , , . . . , . 50,000 ' 50,000 Accounts receivable (net of allowance for uncollectible accounts; $431,000 in 1989 and 8333,000 in 1988) , ...., , .. .. . ........ .... 16,833,66H - 15,129,510 Due from other funds . . . . . . . ........., ... .. . ........ . 1,506,370 482,678 i Prepaid expenses . ., . ..., , .. . ..... ..... ... 19,845 100,662 Inventories - 1:uel . . . . . . . . ......., . .... . . .......... ......, 311,709 7,292,488 Materials and supplies . . . . , , ... .,,,,, , , ... . .. <H97,623 %,I82,65% Total current assets , , , .... .. . ...,..... ...... . .. . 49,123.H3H 40.847.987 i Deferred debits . . .. , , ... . ,. ... ...... ... 35,869,91 H 34,372,006 Totalassets . .. .. , ... . . .,, ,.., ,. $ 691.534,735 5 583,7 l 1,$50 See accompanying notes. ,
i: b 4 1 l 1.libilitlen and I und I:quity 1969 1988 I.org.terin debt and fund equityi 1.ongarrm debt - , l'tilities system retenuc honds . . . . ...... . ......... . $ 361,233,692 $ 260,867,331 l'tilities systein cornmercial paper notes . . . ,.. .. .,,......... 74,803,000 76.2H5,000 436,036,692 337,152,331-1 css: IInamortlied bond discount . . .,,, ... ........ ... (7.6%2,404) (6,8%,IH4)- Totat iong term debt .. ... . . .. . ... .... ...... .... 428.384,38H 330.297,147 l'und equity - Contributions in aid of construction . , , . . . . . . . . . ..... . ... 63,433,H34 60,226,435 Itetalned earnings . . . . .. . . .. . ....... . . . .. I69,697,926 170,176.690 Total fund equity , . . . .............,, ,. . . ... ..,. ... 233,131,760 230,403.I2% Totallong terrn steht anelfunti equity ...... . .... , ,. ... . .. 661.% 16,I 4 H $60,700.272 Pcyable from restricted assets: l'tility deposits . . . .. , ........ ,, ... . . ...., 2,H91,173 2,975,662 Accrued Interest payable . . ,,,,... . . .. . . , , ... 15,586,545' 12,048,43i Construction fund - > Accounts, contracts and retainages payable . . .. . . . .. .. , ., ,,.. ,. 1,166,512 1,226,629 Due to other funds . . ,. .. . ... ... ....,,.. 2,08%,670 727,191 l!!ility plant improvement fund - Accounts payable and accrued liabilities . .. . ,, .. , , ,,,,.. .... 340,668 704,801 Due to of her lunds , ,. . . ....,.. ... ,.... . 155,H66 Totalpayablefnnn tvstrictect assets . .,..... . . . ,, .,,,. 22.070,%68 17.83H.sHO Current liabilitics: 1:ucts payable .. .. . ,,, .... ., ........ .... 3,759,125 2,103,869 Accounts payable and accrued liabilities . . ...,,. .. .., ,, , 3.421,240 2,351,i1% Total currvnt liabilities . . , ,. . . , , ,., , ,,, 7,180,36s- 4.454.984 Deferred credith .. . . , , ,.,. . ,, , , , . 767,654 717,714 Totalliabilities antifunct equity .. . . . . ,, .,.. . ,, S 691.s34,73% $ sH3,7l1.s50
' 15 .
i
G AINI.SYll.11 IllBION Al. t!Til.ITil.h Statements of Revenue and Expense and Retained Earning 6 , for Ibc years ended Septconber 39.1989 and 1988 1
' 19N9 198N 4 a
Operating revenuc6: halch and hervice charges J, , . . . . . . , . . . . . . . . .,.., . . . .. . . , $ 116,904,632
$ 107,170,763 ,
Other operating revenue . . . , , . . . . , , . . . . . . . .... . . . . . . . . . . . . 1,0$7,%HH H94.H7 i Total operating tra'cinses '. . . . . . . . . . . . . . . . . . . . , . . .. .. . . . . . . .. . . . I17,962.220 108,06%,636 Operating expennen . .
- Operations and analntenance . . . . . . . . .
. . . . . . ...... . . . . . . . . -i . . . 54,910,H24 51,401,133
- Adtninit trative and general . . . . . . . . . . , , , . . . . . . . . . . . . . . . . 18,$36,907 17,324.64l' Deptrolation und amortiration . . . , , , . . . . . . ...... , . . . . . . . , . 16,380.034 ;
21%,121.978 h>t:l operating cxpenses . . . . . . . . . . . . . . . . < . . . . . .:.2.... . . . . . . . 89,827,765 83,K47.7 %2 Operating infornr . . . . . . 28,134,455- 24,217,884 [ Nonoperatteig revenue (expenne): Intfr0&lFC%cnUC ....a. . . . . . . . . . . . . . . . . . . . . , . . . . . , , . . . 16.119,64 H 10,305,194- < interest expense , , . . . . . . . . . . . , , . . . . . ....... . . . . .. . . . . . (33,443;185) (27,316,122) l Totn/ nonoperating reernur (expensc) . . . . . . . . . . . .... ,,.. . . . . . . , , . (17,323.537) (17,010.92H) ' incorne befort operating transfers . . . . . . . . . . . . . . . a, . , . . . . . . . ', . . . . 10,810,918 7,206,956 ,' _t Operating transfer to genern/ fund . . . . . , , . . , , , , , ......,. . . . . . . : . . (13,029,H71) _(10.381.915) ; Nrt loas triained . . . . . . . . . . . . . . . , , . . . , . . . . . . . . . . . . , , . . . . . . , . . (2,21H,953) (3.174,959) Retained rarnings. In' ginning . . . . . . . . . . . . . . ...... , . . . . . . . . . 170,176,690 171,709.178 Arnortization of contributions in i nid of ronstrnrtion . , . , . . . . . . . . . . . . .. .... , , . . . . 1,740,189 1,642.471
\
Retained rarnings, ending , . . . . . . . . . . . . .. ,. .. . . . . . . . ,$- , .169 697._,_92_6 $ 170.176,690
- w s
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ik . GAINI:sVit.LL RI:GION Al. UT!LITII;S Statements of Changes in Financial Position for the wars entled Septernber 30.1989 and 198N 1989 1988 hource of working capital Net low retained , ,.... ... .. .... .. ........... . . $ (2,218,953) $ (3,174,959) llems not requiring outlay of working capitah Deptcriation and amorttration . ...... ... . ...... ...... 16.380.034 15.121,978 Working capital provided from operations . . . ...... ........... . 14,161,081 11,947,019 Utility plant sales and retirements. , , .... .. .c. . .. ........ 1,717,297 4,289 586 Contributions in aid of construction . . , . , , , , .. ...,,.... .. 4,947,$88 _4,251,145 f.. crease in utilitics 6ystem revenue bonds ... . . .. ...... .. 100,366.361 - Increase in utilities system commercial 1 paper notes . . .... . ... . ... . .. .. ...,.. .....
- 27,375,000 increase in deferred credits . ....... ............ ..,. ....... 49,940 117,687 Decrease in restricted assets . . . . . o. . ...... . ..,.... ...... .
- 9.854,775, increase in payable froni restricted assets . . .. ...,,.. .. ... ,,,..... ... . 4,231,988 1,160,833 Total source of svorking capital . . .. . ...... . . . .,. .. I25,474,255 58,996.045 i I ,
, Uce of working capitah
- Utility plant additions . . . .. . ... .. ... .. ......... .... 20,226,221 26,345,951 increase in deferred debits . . . . .. ....,.. ...... , .....,... 3,097,695 ,28,575 increase in restricted assets . . . . ... .. . .,,.. .... . 94,320,749 - ,
increase (decrease) in unamortized bond discount 797,120 (262,235) Payments on utilities system commercial paper notes . . . . .. . ,. .. .. . 1,482,000 591,000 Total use of reork/ng cap /tal . . . . . . ..,. ' i19.923,785 I 26,703.291 Change in tvork/ng rapital . . .. . .. . ... .... . $ 5,550.47'O $ 32,292,754 i Changes in working capital by component J Current assets Increase (decrease): Cash and short. term investments . . ... .. .,. , .... 5 -7,894,629 5: 2,125,085 Accounts receivable . . .. . .. ... ., .... .. .... 1,704,I58 1,340,701 ' Due to other funds .. .. . . . ...... . . ... . .. , 1,023,692 (166,958) Prepaid expenses . . . . . ... .. .,. ,,, .. .. . ... (80,817) ,(30,003) l'uel, materials and supplies inventories ... ..,... ,,,,.... . . (2,265,811) 61,367 ,; Current liabilities . decrease (increase): - I'uels payable. ... .._ ... . .... .. .... .. (1,655,256) . 78,750-17uels payable litigation settlement - "27,375,000 Actounts payable and accrued liabilities , .. . .. .. (1,070,125) 1.508.812
~
Chanye in svorking capital . ,,.. .. . . ......, .. . .. $ 5,550,'4 70 $ ' 32,292.754 I
~See accompanying notes. i
17; j
i
i GAINEWil.l.1: klGION AL UTILIT10% Notes to Financial Statements September.30,19M9 anct 1988
- 1. Summary of $lgnificant Accounting Pollries:
llasts ofAccounting Gainesville Regional Utilities (G RU) consists of the Combined Utility I'unds of the City of Gainesville, I'lorida (City). G RU uses the accrual basis of accounting and has adopsid the uniform system of accounts prescribed by the Federallinergy Regulatory Commission. The electrk water, and wastewater funds are combined along with all restricted asset accounts. Intrstments investments sre stated at amortired costs. Premium or discount is amortired over the investment's maturity based on the interest mc! hod. Intrntories Inventories are stated at cost using the weighted average unit cost method for materials, and the last-in, first-out (LIFO)- method for fuel Obsolete and unusable items are reduced to estimated salvage values. Utility Plant Property and equipment are recorded at cost or estimated original cost where applicable. Maintenance and repairs are . charged to operating expense as incurred. The average cost of deptretable plant retired is climinated from the plant I accounts and such cost, plus removal expense less salvage, is charged to accumulated depreciation. ! l Depreciation'anct Nuclear Generating Plant Deconnnissioning i Depreciation of utility plant is computed using the straight line method over the estimated service lives ranging from 20 to 10 years. Depreciation was equivalent to 2.89% and 2.85% of average depreciable property for 1989 and 1988, respectively. Depreciation expense includes a provision for decommissioning costs related to the jointly owned nuclear power plant (see Note 5) at an annual rate of 3.6% of GRU's share of the estimated costs. Amorshation of Nuclear Fueli The cost of nuclear fuel, including estimated disposal cost, is charged to operating expenses. These costs are charged to customers through increased rates or through the fuel adjustment clause.
!!!ility Revenue Recognition
, Utility revenues are recorded as carned. Fuel adjustment revenues are recognited based on the actual fuel costs. Amounts - charged based on estimated costs are adjusted monthly for any differences between the actual and estimated costs once actual costs are known. w Interfunct hansactions Interfund transactions and contributions are genenilly made in accordance with budget ordinances. Interfund trans-actions and balances, except direct billings for utility services (see Note 4), are eliminated for the Combined Lility Funds. Interfund loans do not bear interest. N 18-
i , i
.y Notes to Financial Statements, continued !
t l l l
- 1. Summary of Significant Accounting Policies, continued: 1 1
' Funtis hs Accorciance With DomiResolutions l Certain restricted funds of GRU are administered in accordance with bond resolution. These funds are as follows: '
Debt Service Fund - , _ Subordinated Indebtedness Fund , Rate Stabilization Fund ' y Utility Plant improvement Fund :
, Construction l'und '
o ! The Debt Service 17und accounts for funds accumulated to provide payment of principal and interest on or redeem ' i
- outstanding Utilities system revenue bonds. '?
The Subordinated indebtedness Fund, grouped in the debt service fund for financial reporting purposes,' accounts for - funds accumulated to pay principal and interest on subordinated indebtedness (Utilities system commercial paper notes). . t The Hate Stahllization Fund accounts for funds accumulated to stabilize rates over future periods through the transfer- ! of funds to and from Utility Funds as necessary. , The Construction Fund accounts for funds accumulated for the Cost of Acquisition and Construction.
- p improvement Fund accounts for funds used to pay for certain capital projects or pay for debt service, The Utility lant 'i
- the purchase or redemption of Ilonds, or,otherwise provide for the payment of Honds.
- Allou'ancefor Funtis Usett During Construction ,
i An allowance for interest on borrowed funds used during construction of $327,000 in 1989 and $465,000 l'n 1988 is - included in construction in progress and?ts a reduction c.f interest expense. These amounts are computed by applying the effective interest r.ite on the funds borrowed to finance the projects to the monthly balance of projects under con-struction. The effective interest rates were approximately 5.9% and 7.2% for 1989 and 1988, respectively. l' Deferrect Debits l
< 1
-i Deferred debits represent costs incurred that can be recovered from future revenues through the rate-making process. ;
~
j , Deferred debits are amortized over the estimated life to recover the costs incurred, usually ranging from five to thirty years. -
~
Contributions in Aid of Construction Utility plant in serv!ce for the water and wastewater funds includes assets rcceived from contributions in aid of coni struction. The a. mount of amortization expense included in the statement of revenue and expense relating to the con- , tributed assets is credited to retained earnings to reflect the transfer of this amount to the related contributions account. Reclassification
'~
Certain amounts for 1988 have been reclassified to conform with the 1989 presentation. ! 1 4 1.' h 6 4 I g 19 f 4 " "
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', . Notes to Iinancial Statemcets., continued o.
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2, Imns'. Term Debti. i
~
1.ong term debt outstanding at September 30 consihted of the following:
, 1989 '1985 7
. titilitih System Revenue Honds, heries 19H3 (Bonds) - ,
Principal payable semi annually to October 1,20146 . interest at various rates hetween 6% to 10 25% . .. . .......... ... $ 186,000,000 - $ 186,000,000 ' Utilities System Revenue Honds,1987 Series A (1987 Ilonds) - Principal payable semi annually to October 1. 20171 , interest at various rates between 5.6% to H.4 % . . . . . . . . . . .-. .,.... 74,H67,331 74,867,331 ,
~
- . +. .
Utilities System Revenue Honds, Series 41989 - (1989 Subordinated Honsis) . . Principal payable $cml. annually October 1,2013;. . interest at various rates between 6.4 % to 7.25% . . . . . . . . . . . .$ . . . .100,366,361 .
' ^
Utilities System Commercial Paper Notes, Series il(Series H Notes) ~ Principal payable no later than October 20,1992t ' interest at various market rates .~ . . , , , . . . . . . . .,.... ,......... ~
~
74 803,000 76.2H%,000
) 1436,036,692-
'337,152,331
- l. css: unamortired bond discount . . . . . . . , , , . . . . . .'.......,,....... ~ (7,652,304)
(6.855,I H4) i'Ib tal long; term debt . . . . . . . . . , . . . . . . . , . . . . .,,.. ,.... ....
$428,384,3H8 +
$ 330,297.147 :-
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. Notes to 1inancial Staternents, continued '
2
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- 2. tang-Term ' Debt, continued ,<
The table t clow lists the Debt Service Requirementh on the bonds outstanding at September 30,1989', - 4 .. 1btal Net ! Period I'.nding Senior I.len 19H9 - Debt Service October 1 flonds nOI . Subordinated lionds th Requirements 68 .;i s l
,1989 5 17,939,790 5* i ( e 5 17,939,790 !
1990 ;19,664,790 -534,580 _ 20,199,370 nl I99l 26,756,070 1,966,351 ' ' 2H,722,221 - 1992; 26,754,555 3,366,377 30,120,932- ' 1993 26,755,673 4,814,006 31,569,6H 1 i 1994- .26,755,900 7,678,628- 34,434,$28 ; 1995 ~. 26,751,350, 7,H74,147 , 34,625,497 -! 1996 -26,749,450 7,878,373 . 34,627,H23' ) 1997" 26,755,360 . 7,877,372 s 34,632,732 199H 26,751,,H 20 7,876,0lH . 34,627,83H '
.1999 26,753,588 7,873,837 34,627,425 ,
2000 26,302,H41 - 7,H73,H3H , . 34,176,679 ~ 2001 26,751,443' 7,H73,837 ' < 34,625,280 2002 - 26,750,1HH 7,873,83H 34,624,026 . ! 2003 26,752,383 ,7,873,H37 ?,4,626,220 ' 2001 26,750,640 '7,873,838 34,624,478; l 2005 26,751,027- - 7,H73,H37 s 34,624,H64 { 2006 26,752,640 , 7,H73,838 ,34,626,478i ' 2007 ,._26,751,627 ' 15,213,837 41,965,464 y < 2008 26,753,627- 17,623,962 44,377,$H9, f' l 2009 26,75H,921 17,629,412 44,3H8.333 L 2010- 26,753.827" - 17,623,600~ f 44,377,427 i i 2011 26,751,403 17,622,900' { 44,374,303, 'j 2012 26,752,378 17,622.23H , 44,374,6161 ' 2013 . - 26,75 5,H27 ' , 17,626,53H i- 44,3H2,365 "2014 ' ' 26,754,527 - . '26,754,527.- ; 2015 6'761,540 9 6,761,540. 2016 \ 6,,61,300 '
,, - 6,761,300 2017 6,763,762.- . 6,763,762
$699,5 IH.249. . $233.HIH,839 ' $933,337,08H _ ;
a +
' m inchides the 1983 llonds and 1987 Ilonds. ~ ;
m includes principal,' sinking fund installments and interest, net of capitalized interest, .
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m ljxcludes debt service payments on Series 11 Notes. 4 f 4 9 g 5
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, Notes to f inarwial Statenwnts, watinued !
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; 2. Imag!Ilrrat Delot, cont 6nue& '
^
l The 1983 Hondsmaturing on or after October 1,1994 (except those maturing on October 1,20l4), are subject to redemp-.
. - l
>l
. y;; " tion at the option ofinw City on and after October I,1993, at a redemption price of 102 % % in 1993, and 102% to 10M, - i( o thereaf ter. The 1983 Honds maturing on October 1,2014, are sub)cci to redemption at the option of the City on or after j
' October 1,- 1993, at a redemptiorj price of 100% ,-
]
iThe 1987 Honds maturing on or after October I,199H (other than GAINS Securitics) air subject to redemption at the option of the City on and after October 1,' 1997, as a whole at anytime or in part on interrat payment dates, at a redemp-l 3
- tion price of 102% in 1997 and 10l% to 1(F)% thenafter. The 19H7 Honds maturing on October 1,2007 to October 1. , j 2017 are subject to redemption through niandatory sinking fund imitallments beginning on October 1, 2003 through t j
, . October 1,2017, The GAINS Securitics are wblcct te redemption at the option of the City on or after October 1,2000, ij D ' as a whole at anytime or in part on Octobet 1, or April 1, at a redemption price of 102% in 2000 and 10l% to 100% j therealter. s l i Under tiie terms of the Hond Resolu'tlon relating to the sale of the'Aonds, payment of the principal and interest is secured f by an irrevocable lien on GRU's net revenues (exclusive of any funds which may be established pursuant to the Itond ~ .[ Resolution for decommissioning and certain other specified purposca), including the investments and income, if any, j thereof; ; g The Hund Resolution contains certain restrictions and commitments, including GRU's covenant to establish and main- t h tain rates and other charges to prmluce revenues sulficient to pay operation and maintenance expenses, amourits budgeird i for deposit into the rate stabilization fund, amounts nquired for deposit in the debt service funds, and amounts required j
~
' for deposit into the utility plant improvement fund. ,
j
< . ?
The 19H9 Subordinated llonds maturing on October I,200H and 2013, are subicci to redhmption at the option of the '{
' City on and after October 1,199H; as a whole or in part at any time, at a ndemption price of 102 % through September; }
30,1999, and 10l% to 100% thereafter. The Capital Appreciation Honds(other than those maturing on October I,1999): 1 l are subject to redemption prior to maturity at the option of the City on and after Ocmber li1999, an a whole or in part j l at any time at redemption prices of 103% through September 30,2000, and 102 % % to 100%'thereafter. 1
, " The 19H9 Subordinated lionds are direct and.special obligations of the City occurc'd as to the payment of th'c principal I or sinking fund redemption price and provisions thereon, In accordance with their terms and the provisions of the Sub-
- l ordinated Resolution, by the Subordinated Indebtedness fund, the Subonlinated Debt Service Reserve Account and the
' l Subordinated liond Payment Account. The 19H9 Subordinated lionds are subonlinated in all respects to bonds issued; J as first lien bonds (" Senior Lien Honds") under the Utilitics System Revenue liond Resolution. Payment of principal of ;
and interest on the 19H9 Subordinated Honds when due ate insured by a municipal bond insurance policy issued by AMHAC - 1 i . Indemnity Corporation.- ' 4 s The Series H Notes, are outstanding under a Revolving Credit and 'Ittm Loan Agreement dated October 1,"1987 (Series . ! H Agreement); =! 3 L . . Under the terms of the Series H Agreement, GRU has the ability to borrow with same day availability,'up to $78,000,000 ' II on a revolving basis until October 20,1992, at which time it may convert borrowings to a term loan. c3 -l a
- Series 11 Notes of $1,482,000 were redeemed during 1989. , d
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Notes to financial Statements, continued
- 3. Mc6tricted Cash and Inve6tments:
The funds of GRU are administered in acconlance with the hond Resolution and are invested in governm* nt securities and other temporary investments. Investments mature as required to meet debt service payments or other obligatloas. All cash and investments of GRll are in category I as defined by the Governmental Accounting Standards Board Statement No. 3, Category 1 includes investments that are insured or registered, or securities held by GRU or its agents in GRU's name, or held by GRU's agent in a Depository 'Irust Company Custodial Account. .
- 4. Interfund Direct Utility Billings:
Included in revenues are the following Interfund direct billings for utility services: 1989 198N Retenues: hates of electricity . . . . . . ..... ...... . ........ .. '. .. ... . . . . . . $ 1,814.428 ' 91,752,33H hales of water . . . . . . . . . . . . . . . . . . . . . ........... . ... ... . . . . . . 126,651 125,297
.htewater service charges . . ...... ............. . . . . .... .... . . . . 2,693 3.579 7bt<s/tvtrer<cs ......... ... ... , . ................. . .... . . . . . $ 1,943,772 $ 1.8H 1,214 Included in expenses are the following interfund direct billings for utilit'y services:
~,
1989 1988 ' I5%petises: l.'Irctric fund . . . . .. ,,... .... . . . ... . ... ., . .. . . . . . . $ 288,503 $ 291,453 Tater fund . . . ... . ... ...... ... . .. ......... .. . . . . . . H 16,880 790,791 Wastewater fund . . . . .... ..,.....,..... ,..... .. . . ... . . . . . H3H,389, 798.970 701(il cN/lcil$c5 .. . ....... ,.......... .. .. .... .. ...... . . . . . . $ I.943.772 '$1.H81,214
- 5. .lointly Owned F.lectric Plants GRU-owned asources for supplying electric power and energy requirements include its 1.4079% undivided ownership interest in the Crystal River Unit 3 (CR3) nuclear power plant operated by Florida Power Corporation. CR3 operating and maintenance costs, which represent GRU's part of expenses attributable to operation of CR3, are properly recorded in accordance with the instructions as set forth in the Uniform System of Accounts. Payments are made to Florida Power .
Corporation in accordance with the CR3 participation agreement, t 1
- 23
^
[" , f .s 4 Nott to financial Statenients, contiaued ' i
, l 6 Contributions in Aid of Constructium t' g Contributions in aid of construction are as follows:
1989 1988 i
}
Contributions in and of construction: ' Utility plant, property, and eqt.ipment ' contributed by municipality . , . . . . . , . . . . . . . . . . . . . . . . . . . . . . 5 3,982,274 5 3,982.276 lederal and state grants in aid of construction . . . . . . ', . . . . . . . . . . . . . . 13,023,841 12,775,641 Contributions from customers and developers: Plant mntributed by developen . . .. ... . . . . . . . . . . . . . . . , , . ; - 32,2 41,6H5 29,856,705 Connection charges . . , , , ..... . . . . . . . . . . . . . , , , , . . 32,20% 314 29.H90.904 81.453,114 76,505,526 Accumulated amortiration . . . . . ,,, , ... ,,, ,. . . . . , , . . . . , , (IH,019.280) (16,279,091) Contributions in and of construction , , ,.. . . . . . . . . . . . . . . . . . . 5 63,433.834 5 60,226.43%
- 7. Metained I:arning6:
Retain (d earnings reserved for debt service and unappropriated are as follows: 1989 1988 Reserved for debt service , , ,, .. . . . . , . . . . . , , . . . . 5 75,091,045 5 45,429,940
!!nappropriated . . ... . .. . .... .. . . . . . . , , . . . . . 94.606,881 124,746,750 7 blat retained earnings . . , , . ., .. ..,,.. , , , , , , , , , , . . . $ 169,697,926 5170.176.690.
Retained earnings balances at September 30. included in the debt scrdice fund accounts, are as follows: , 1989 1988 Sinking fund account . . . . . . .. . .... . . . . . . . . . . . . . . . . $ 9.393,775 5 6,946.076' Reserve account . . ,, ..... . . . .. .. , , , . . . . . , , 37,95E,113 27,504,383 Debt service account . .... .. .. .. , , , . . , . . . . . 20.818,049 22,772,622 Subordinated bond payment account . ., , . . . . , ., . . . , . . . . , 15,025,720 - Subordinated indebtedness fund account . , ., , . . . . . . . , . . . . . . 520,130 225,000 >
, llond amortization account .. .. . .,, . , , , . . , , . . . . , , , . 6,844,493 -
1 Commerchi paper note payment account .,, . , , , . . , , , . I17.310 30,290 90,677,590' 57,478,371 1.cssi Amounts appropriated for current interest payable . . . . . . (15,586,545)- ' (12.04 H.4 31)
$ 75,091,045 i s 45,4 29,94JO e ,
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' Notes to l'inancial Stateme ts, continued i
N. Itetirement Plans
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; The City sp(msors and administers two retirement plans that include GRU cmployees together with other City employees.
7 The hmployees Pension Plan (I'rnployees Plan), a defined benefit, primary contributory pension plan, r,vvets all employees of GRU, except ceratin personnel who elect to participate only.in the Deferred Compensation Plan, The City accounts for, and funds the costs of, the 1:mploycen Plan aithey accrue. Such costs are based on contribution rates determined by the most recent actuarial valuation. The total contributions by GRU, including amortir.ation of prior service costs, for the years ended September 30,1989 and 198H, wa$ 51,047,000 and $940,000, respectively. In the opinion of the City of Gainesville, GRU has no obligation for any unfunded past service or other cost of the pen-sion fund in exccu of the required annual contributions.
. Certain employees are eligible to parrticipate in a defined contribution deferred compensation pian managed by the Internatiosul City Management Assoelation as fiscal agent for the City, Under this plan, the City contributes 6% of an employee's annual salary and employees may contribute either a specified percentage or dollar amount.1btal deferred -
compensation cost for GRU for the years ended September 30,1989 and 1988 was $ 180,700 and 5164,000, respectively.
- 9. Transfers to General 1und:
On April 14,19H6, the City Commission established a formula to determine the amount of System revenues to be trans- , fctred to the general government of the City. The formula was amended by the adoption of the fiscal year 1989 budget. The transfer to the general fund may be made only to the extent such monics are not necessary to pay debt service on the Outstanding lionds and subordinated debt or to make other necessary transfers under the Resolution. The fund transfer to the general fund for the years ended September 30,19H9 and 1988 was' f13,029,871 and $10,381,915, respectively.
- 10. Deferred Debits:
Included in deferred debits is the unamortized balance of $25.302,000 remaining of the original payment of $ 27,375,000
'3 made to Island Creek Coal bales Company on l'ebruary 10,1988, in full settlement in connection with the City's cancella-tion of a contract for supply of coal to Deerhaven 11 generating plant. The settlement payment, funded with Series H -
Notes, is being recovered through future utility fuel adjustment revenue through the year 2003 The remaining balance in deferred debits is comprised of bond'Is'suance costs and miscellaneous items which are being '
+'
amortired over periods from 5 to 30 years. ll. Subsequent I vent On December 4,1989, the City Commission approved a purchase agreement for GRU to acquire Gainesville Gas Company for $13 million. The proposed acquisition to be consummated on January 9l 1990, is sub)cct to the approval of the shareholders of Gainesville Gas Company. GRU anticipates funding the purchase with proceeds from the 1987 bond issuance '
'4 1
1 251 2 s , i m
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1 f 9 4 I l i 1 x b 1 l l l l 1. I l l l i,- I 26
Report of Independent Accountanth on Supplemental Data The lionorable Mayor and Members of the City Commission City of Gainestdle Gainchville, I'lorida 32601 Our audits were made for the purpoac of forming an opinion on the basic financial statements taken as a whole. (We have previously audited the financial 6tatementh for 1987,1986 and 1985 - none of which are presented herein - and we expressed unqualified opinione an those financial statements). The
., accompanying schedules of combined net tevenues in accordah .e with bond resolution for the years ended September 30,1989,198H,1987,1986, and 1985 net revenues in accordance with bond resolu-tion - electric utility fund, water utility fund, and wastewater utility fund for the years ended September.
30,19H9, and 19HM, combining balance sheet at September 30,1989, combining $tatement of revenue and expense and retained earnings for the year ended September 30,19H9, and schedules of utillty plant properties and accumulated depreciation and amortization for the year ended September 30,19H9, are presented for purposes of additional analysis and are not a required part of the basic financial statements Such information has been subjected to the auditing procedures applied in the audit of the basic financt; statements and, in our opinion, la fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.
]($+ lAY Coopers & l.ybrand
,lacksonville, I'lorida 4 g g --
- 1) avis, Monk, larr.sworth & Company Gainesville, I'lorida December 7,1989 I
27
q GAINEWILLE REGIONAL UTILITIES Schedules of Combined Net Revenues in Accordance with Hond Resolution , for tbr pars ended September 30 1989,1988,19M,1986 and 1983 19H9 19HH 1987 19k6 _ _198% Stevenutes Ilettric fund Sales of tierttkity , , . , 8 99,922,Hk3 $ 92,340,461 8 87,09H,001 $ H6,410,497 8 93.410.046 Othet tlectrit tr$cnues . , . - 1,647,646 3,27%,?6%' 4,3?9,922 2,H76,%3 (1,113,90(9 Interrat income , , 4.994,7%6 4,114,27% %,403,1%2 3,932,7%0 - 3,9?6,216 linal ciertrk fund revenuta. . . . 106,466,29% 99,?29 601- 94,Hk t ,0?% 4 93,219.H00 96,3?2,396 Water fund J liales of water s . . 7,992,0%I 6,73H,309 6,373,68% 6,26H,636 6,072.296 Othrt water revenuc6 . , 1,$H9,08% 321,927 44%,$93 411,099 (170,396) Intertet income ,, , , 1,143,24 H 949,H90 499,2 ] , 461,627 44H.2H3 ~ lotal water fund revenuca , .... 10.234,3H4 H,00H.126 7,4tH M i, 7,441,362 :6,%O,183 Wantrwater fund. Wattew atrt idllingt . . ,, ,, 9,4 H9,697 H,091,H99 7,771,422 ; 7,461,HOS ?,293,74i , Other wastewater tevenuen , ,, , (9,7441 (1,140,327) (% ),1%)~ (368,H46)' (4 20,1 %) Interrat trunme , 1,900.626 1,916.602 696,69% 494,11 H 476 Hul Total traitewater fund revenues , , l l ,3HO,979 H.46H,1 ?O H A l*,0 49 7,hH?,06? ? 4%0.390 Ad:J rrirnNr* , ,,, 12H,lHl.2%H 1 16. 20 % .H 9 110,? t 6,66% 10H,04H,229 110.172,929 , Operatten and tr.alntenante captunem Ilroric fund l'oel etpenst , , , ,46,20H,67 % 33,719,497 33,741 34% 36,028,210 4 2,139,Md Operation and maintenantt , , , 12.691,332 11,767,141 12,i 4 H,298 9,732,748 H,74 H.61 H Adminhtrativt and general ,, , , 13.244 A43 13,lH2,42H 11.947,936 10,349.22% 9,?H 2,H 10 1 mal ticrirk fund expentes 62,144 A %0 % H,669,026 %?,847,%?9 ' - 46.110,lH3 60,670,932 Water fund Operation and maintenante 2,7 % ,419 2,?20,77% 2,634,446 '2,360,623 2,332,%H3 , Administrativt and general 2.04?,026 1,949.109 1,40?,224 1,491,940 136%,924 lbtal watet fund capensen , , 4,802,44% 4,669.HH4 4,141,6*O 3,932,%63 3,79H.907 Wantewatet fund: - Operation and tusintenan(t 3.2 % ,397 3,193,659 3,124.3H6 2,7?9,047 2,6H4,066 Adminhtrativr and general , 2.841,943 2,193,204 '2.111,412 1,976,40H 1,H 21,6H 3 lutal wastewatet fund capemes, 6.09?,340 4,3H6,H63 %,2 3 %,? 9H 4.7 %,46% 4,%04 '49 Tbt:1 oprmiton and maintenam e r,spenses , 173,044,23%) (6H,72%,??3) (67,22 %,04?) (64,79H,21 l} (6H,9?%,'lHN) Net rvernues in uunniam e with bond tvsolution-I l 1.ltct tk , , , 4 4,4 21,H44 41,060,%? % 37,033,496 37,109,617 34,701,424 I Water , . % A 31,939 3,338,242 . 3,276,H81 3,20H,799 2,MI,67Q l Wastewater %,2H3,239 3,OH l .30? 3.181,241 2,931,602 2,944,641 Net revenuch before interrat imome from stnt,6ng fund . . %,137,023 '4 7,4 HO,12 4 43A91,61H 43,250.018 41,197,?41 Interest income from stnling fund, _
?O3,214 % 2,250 466,034 347,0HH 207,H9H 1htal nel vrstnues in accordance with boredrr @ nvon ,
{M,840,237 $ 48,()32,374 $ 43,9%?,642 $ 4 3.49?,106 5 41A04.639-Aggrrgotr debt scrrice , $ 17,939,?90 $ 17,939.?90 $ l?,939,*90 $ 17,949,?90 $ 17,939,?90 a . - coterage rotto , 3.11 2 6H 2 44 2 43 2.31 hdol drht serrt(r . , 8 24 A39,236 ' . . , Coerroge tutto. . 2.2H . . . See note on page 31, 2H ' '
k GAINI'.5Vil.LE RILGIONAL UTILITits Schedules of Net Mcvenues in Accordance With Bond Resolution , Electric Utility Fund i for the years ended Septernber 30,1989 and 1988 1989 1988 Merenness s sales of electricity: Residential sales . ..... . . . . . . . . . . . . . . . . ............... $ 38,469,330 $ 35,718.499 ' General service and large power . . . . . . . . . . . . . ..<,.... ,..... 39,6HH,277 37.845,569 l'ucl adjustment , . . . . . . . . . . . . . . . . . . . . . . . . ........... .. 336,799 (1,472,350) Sitect and traf fic lighting . . . . . . . . . . . , . , . . . .. ............ 1,632,077 1,551,461 Utility 6urcharge . . . . . . . . . . . . . . . . . . . . . .. ......... . 2,110,442 1,933,834 hates for resale . . . . . . . . . . . . . . . . . . . . . ............. 3,833,$ 13 3,27H,164 Interchange sales . ... . . . . . . . . . . . . . . . . . .............. . 13,H52,44 5 13,4 85.3H4 lbtal sales of electricity . . . . . . . . . . . . . .. . . . . . . . . ............... 99.922.8H3 92,340,561 Other revenueu
' transfers from rate stabilization . . . . . . . . . . . . ........... 630,000 2 3 29,283 Service charges . . . . . . . . . . . . . . . . . . . .............., 781,208 646,078 Pote rentals . . . . . . . . . . . . . . . . . . ... ........, 129.H78 . 86,63H Miscellaneous . . . ... . . . . . . . . . . . . . . . . ............. . 106,570 113,766'
'Ibtal other revenues . . . . . . . . . . . . . . . . . . . . . . . .... ..... ... 1,647.656 3,275,765
, interest income , .. . . . . . . . . . . . . . . . . . ... ......... 4.995,756 4.113,275 76tal treenues ... ...... . . . . . . . . . . . , , , ........... . 106,566,295 ,
99,729,601
+
Operation and maintenance expenses: Operation and maintenance: l'uci expense: Retail and purchased power , , . . . . , , . . . , ,. ..... . ,,, 27,994,444 24,782,250 Interchange . . . . . . . . . . . . . . .........., , . H,214,231 8.937,307
'Ibtal fuel expense . . . . . . . , , . . .. . ,,,,, . .. 36,208,675 33,719.557 l'ower production . . . . . . . . , ............... 8,995,600 = '8,216.661
' transmission . . . . . . . . . . . . . . . , ,,. ........
.. 559,906 467,323 Distribution , .... , , . . . . . . . . . . . . .... . ,, . , . . 3,135,826, 3,0H3,157 '
'Ibtal operation and maintenance. . . . . . . . . . . . . , , .,,, ... ,,.. . 4 H,900.007 45,486.698 Administrative and generah
/
Customer accounts , , , , . . . , , , , . , , . . , , , 3,,, .,,........ 1,454,436 1,391,446 Administrative and general . . . . . , . . . . . , . . ., ,.....,.., ,. I1.790.007 11,790,882 lbtal administrative and general , -. . . . . . . , , ,, , , . , 13,244,443 13,182,328 lbtri operation and rnaintenance v.rpenses . . . . , , . . . . . . . . 62.144,450 58,669,026 N;t revenuch in accordance with bond resolution Retail .... .. , , , , . . . . . . , , , . , , , ., .. ., ... 38,783,631 36,512,498.- Interchange . . . . . , . . . . . . . .. ,, , , . , 5,638.214 4,548.077. Net revenues before interest income from sinking fund >. . . . . . . . . , , . , . . . . . ... .. ... . 44,421,845 41,060,575 Interest income from sinking fund ~ . . . . . .,. . .,,...... 617, 3 485,158 " 1bt:1 net oveennes in accordance seith
- bond rvsolution . . . .. ... . . . . . . . . . . . . . . . , .... .... ..... 8 45.039.626 5 41.545,733 Se,c note on page 31. j i
29 l
G AINI;SVit.l.l! RI.GION A1. UTit.lTil'.S
' Schedules of Net McVenues in Accordance With Bond Resolution '
Water Utility Fund for the)rart ensied 3epternher 30,1989 and 1988 1989 1988 Revenuc6. Sales of water: General eustomers . . . ., .... . .. ........ . .......... .. S 5,5H8,025 5 5,212,222 , University of i'lorida . ..... ... .. .. . ............ ...... 562,995 527,195 : l' ire protection . . . . . . . . ...... . . . .,. ... . ... . ... 743,383 720,356 Generating stations . ., .. ..... ... ...,................. 77,094 71,379 Utility Surcharge . . , .............. ..... .......... .. .., 520, % 4 207,157 . l 'Ibtal sales of water . . . . . . . .. ,, ......... ............ ...... 7.492,051 6.73H.309 1 i , Other revenues:
'transfenn to rate stabilization , , , . . ....... .......... 550,000 (473,000) i Connection charges . . . . . ........ .. . . . ... . ... 1,021,317 772.635 i Miscellancom . . .. . , .. . .. ........., . .. . .... ,, 17,768 22,292
'Ibtal other revenues , . . . . . .. . . ,, . .... ..,... ....... 1,589,0H 5 321,927 Interest income . . . .. , , , . .. ....... , ... . .. , , 1,153,24 H 947.890 lbtal treenues .... ........ ...... . ,,.. , . , .. ,. .. . .., 10,231,384 H,00H,126 Operation and maintenance expenses:
Operation and maintenance: Sourec of supply , .. , ,. .. . . , , , . .. ... 6,096 832 , l'omping . ., .. . ... .... .. ,, ... . . .... 879,771 H52,380 Water treatment . . .... ,,,, . . ... .. .... ... ,, 1,280,961 1,314,3H4 Transmission and distribution . . ,,.. . ,.. .. , ,,,. . 588,61I . _ M3,179
'Ibtal operation and maintenance . . ., , , ... . . ... , ,,,. = 2,755.419 2,720.775 Administrative and general:
Customer accounts . . ,,. .. . .., ,, ,, .,,.. ......., 310,980 285,906 l Administrative and general . . . . .. . .., ...... .. ... 1,736,016 1,663,203 ,
'Ibtal administrative and general . ... . , , ., .. . ,, .. .. 2,047,026 -1,949,109 lblal operation and analntenance expenses . .,,... . .. ,, , , ,,. 4,HoQ 145 4,669,8Hi t
Net revenues before interest !ncome l from sinking fund . 5,431,939 3,338.242 f Interest income from Sinking fund . .... .. , ,.. .. . 42,938 33 "'20-1btal nel treenues in accordance trith bond trsolution . . . .. . . ... ,,. . ,., ........ 5 5,474,877- $ 3,371.962 See note on page 31. A _.b 30 -
GAINI;WILLE RIGIONAL UTILITILS Schedules of Net Revenues in Accordance With Bond Resolution Wastewater Utility I'und for Ibe.tvart enclect Septernber 30,1989 anc! 1988 1989 1988 MercCuess Wastewater billings: lilllings . ....... . .. . . . .... ..... ................ 5 8,754,640 5- 8,047,195 Utility surcharge . . .. .. . .. ,. . . ... ., ..... 735,057 44,700
'Ibtal wastewater billings . . .... . ..,. .... .., ....... 9.489,697' 8.091.895 Other revenues:
'Iransfers to rate stabilization . .... .. ... .......... .. ........ (1,325,000) (2,059.500)
Connection charges . . .. .... ........ .. .............. . 1,293,093 893,076 Miscell.meous , , , .... .. . .. ... ...... . ...... . . 22,163 26,097
' Intal other revenues. ..... ............ ... ... ......., . ... (9.744) (1.140.327)
Interest income ... ... . ,, , .. . . ........ .y..... , 1,900,626 1,516,602 7blal arrenues . . .. . .... .. .. . .., .........., ,. . 11,380,579 8,468,170 Operation and maintenance expenses: Operation and maintenance: Collection ., . . , , . ... . .. . . .... ... ..., . . 433,615 438,536 , Treatment and pumping . . . . ...... . ... . . ... 2.821.782 2.755.123
'Ibtal operation and maintenance. . ... , , .... .... . ,... ,, .. 3.255.397 3,193.659 Administrative and general:
Customer accounts , , ,,,,, . . . ,. , ... 262,259 235,804 Administrative and general . . . .... . ,..., .,,, 2,579,684 1,957.400
*1btal administrative and general . . .... . ........ . . . . ..., 2,841,943 2.193,204 lblal operation anc! maintenance expenses . . . .,.... . ..., ,. . .., 6.097.340 $.386,863 Net revenues before interest income from sinking fund . . ., , ... . .. . ... ... . ..... 5,283,239 3,081,307 Interest income from sinking fund . . . ... .,. . ... .. 42.495 33,372 Tblal net overnnes in accorrlance rettb hon <l tvsolution . .. . . . ,,. .,,. .. . , ,.. ,,.... $ 5,325,734 $ 3,114,679 NOTE: " Net revenues in accordance with bond resolution" differs from " Net income retained" which is determined in accordance with generally accepted accounting principles.1:ollowing are the more significant differences:
- Interest income does not include interest earned on construction funds and on certain debt service accounts which can only be used fot certain restricted purposes.
- Operation and maintenance expenses do not include depreciation, amortization, or interest expense.
- Other water and wastewater revenues include fees for connection, installation, front footage, federal grants and
. backflow prevention.
- Transfen. to the general fund are not included. '
- Other revenues include transfers (to) from the rate stabilization fund.
- Ext'raordinary items are not included.
33
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? , g GAINisVit.11 RI'GION Al, UTil.lTIES Schedule of Combining Balance Shectr 4 befnember 30.1989 , Asset 6 '
< 1 Electric Whter Whsten ater Combinect Utility Plant:
Utility plant in service . , ,,,, ,,,. $ 370,173,341 ' $68,103,525 $ 89,538,073 $527,H14,939
, Construction in progress', ,, ,, ,,, ,. 5,534,025 1,952,697 3,406,120 10,H92,84 2 375,707,366 ,70,056,222 92,944,193 538,707,781 1.ess: Accumulated depreciation and amortization , , , . ,,, , ,,, '(103,814,162). (21,3H6,846) t (25,605,209) (160,806,217)
. Net utilityfilant ,,. ,,,,, ,, . ,, , 271,H93,204 48,669,376 67,338,984 387,90),564{
Mestricted ansets:- s Capital facilities - Cash and investments , , ,,,. . . . - - 1,338,139 1,338,139 - Utility deposits - Cash and investments , , , , , , ,.,,, , 2,H91,173 - . .
- 2,H91,173 Debt service fund -
Cash and investments , , ,. ,, ,, , 66,68H,677 10,824,769 13,164,144 90,677,590 . Rate stabilization fund - -
- Cash and investments , , , , , 3,570,H12 4,051,886 10,106,511 19,729,209 Construction fund -
Cash and investments , ,,, , , 53,463,249, 20,111,748 26,134,723 99,709,721 , contracts in progress . ,,, ,,,,
,, 13H,566 115,030 806,179, 1,059,775
' Utility plant improvement fund -
Cash, investments, and receivables , 997,233 1,387,011 849,535 3,233,80H 129.749,710'
~
76tal rrstrictett assets , ,,, , , , 36,490,474 52,399,231 2 i H,639,415 C rrent annets: Cash and short, term investments , ,, , , 17.,069,390 1,384,026 1,378,727 19,H32,14 2 - Decommissioning trserve- , Cash and investment 4 . , ,,,,, . , 672,481 - - 672,4 H 1 Water pollusion emergency reserve - j Cash and investments , ,, , ,. - 50,000 - 50,000 ' Accounts receivable, net , , , 15,584,733 776,397 472,537 16,833,668 Due from (to) other funds , , , , 3,214,222 (173,407) (1,534,445) 1,506,370 - Prepaid expenses , , , , 19,349 489 7 19,845 i inventories: 1:uel , , , , , 5,311,709 - - 5,311,709 , Alaterials and supplies . . , , ,,, 4,897.623 - 4,897,623 7btul current assets . , , , , , . 46,769,507 2,037,505 316,826' 49,123,838 Deferred Debits , , , _33,893.804 876,4 H4 1,099'630
, ~35,869,918 ~
s 76tn/ assets . ....,. , 54 H2,306,225 $ 88,073,839 5121,154,671 $691,534,7351 , t k 32' -
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< l Liabilitics and I und Equity.
1:lectric Whier Whsteu'ater Combined ~ Inng term debt and fund equity: long term debt - Utilities system revenue bonds .. .,.,, $ 262,941,701 $ 43,06H,072 - 8 55.223,918 $361,233,692 Utilitf ts system commercial p.iper notes . $H,555,287 5,660,439 10,$H7,274 74,H03,000 1 css: Unamortired bond discount . .. . (6,391,988) (605,853) (654,462) -(7,652,304)- lutal long term debt .. ... . . . . . . , . 315,105,000 4H.122.658 65,156,730 4 2H,384,3HH l'und equity - Contributions in aid of construction . . . .. . . .,
. 23,470.062 39,963,772 63,433,834 Retained carnings . . , , ... .. . 143.6H2,7H5 14,337,07H ' 11,67H,063 169.697,926
*1btal fund equity . . , , . 14 3,6H2,785 , 37.807,140 $ 1,641,835 233,131,760 lbtallong term debt cndf'undcquity ., .. . , , . . . 4 5H,787,785 H5,929,798 116,79H,565 ' 661,516,14H Payable from restricted asseth .
~
Utility deposits ... , . .. .. . 2,891,173 . .
. . 2,891,173' Accrued interest payable. . . . .. ,, 11,683.107 1,715,880 2,1 H7,55H 15,586,545 Construction fund -
Accounts, contracts and retainages payable . , ,. .... . . 204,760. I15.030 H46,722 1,166,512 Due to (from) other funds. , , , ,. 1,341,581- -(23,360) 767,449 4 2,085,670 Utility plant improvement fund . Accounts payable and accrued liabilities . . . 265,164 25.060- 50N44 340,668 16talpayablefrinn trstricted assets , , . . .. .. . . . 16.385,785 1,832,610 3.852,173 22,070,568 C:rrent liabilitics: Fuels payable . . .... . ,, 3,759,125 . .
'3 , 759 125-Accounts payabic and accrued liabilities .. . .,, , 2,605,876 311,431 50s,933 3,421,240 7htrl curvynt liabil(t/es . . ,, ,,, 6,365,001 -311;431 503,933 7.I80,365 Deferred credits . . , . ... , , . 767,654 - - 767,654:
7ht;/ / labilities andfund equity .. , $ 482,306,225 $ 88.073,839 - $ 121.154,671 $691'534,735 s a
+
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GAIN 13Yll.LL RI:GIONAl. UTil.lTIES Schedule of Combining Statements of Revenue and Expense and Retained Earnings
;for the year ended Septentber 30,1989 ,
1:Icctric It7 ster likstetenter . Cornhtncel Operating revenues: . Sales and service charges , , , ,... . $ 99,922,H84 $ 7,492,051 $ 9,489,697 $ 116,904,632 Other operating revenue . . ... . .,,, . 1,017,656 17,769 22,163 1,057,5HH 70tal operating trsvnues , , , , , ,, , .. . . 100,940,540 7,509,820 9,511.H60 ' 117,962,220 i Operating expensen l Operations and maintenance . . .... .. 48,900,00H 2,7$5,419 3,255,397 54,910,H 24 ' -- Administrative and general ,,,,. , ,, .. I3,244,443- 2,24 H,774 3,043,69I I H,536,907. Deptoriation and amortization . . ,,... . 12.4_16.580 1,715,357 _ 2,24 H,097 16,380,034 7btaloperating mpenses . .......,,, ..,,, 74,561,031 6,719, % 0 H,50,IHS H9,827,765 Operating income , ... ....,.... . ... 26,379.509 790,270 964,675 28,134,4 % Nonoperating revenue (expense): Interest revenue , , . ,, ,,, . .,,,.. 9,155,746 2,H25,770 4,138,132 16,119,64 H intert5t expense . .. ,... . . ,, (25,965,517) (3,209,H43) (4,267,H25) -(33,4 4 3, I H5) ' 7btal nonoperating erstnuc (expensc) ... .. (16,809.771) (384,073) (129,693) (17,323,537)' income before operating transfers . ... .,,,,. 9,569,73H 406,197 834,982 10,810,91 H Operating transfer to general fund . ., ,., (10,859,317) (1,023,805) '(1,146,749) (13,029,H71) Nel loss retained . . ,,, ,, ,, ,. (1,289,579) (617,608) (311,767) (2,21 H,953) Retained carnings, beginning . .... .. .. , 144,893,561 14,061,312 11,221,814 170,176,690 Residual equity transfers , , ,, .. . . . 78,800 306,093 (3H4,892) . Amortization of contributions in ald of ronstruction , ,, . , , . . - 587,2H1 1,152,90H 1,740,189 Retained carnings. coding , , ... . _$ 14 3,682,785 $ 14,337,078 $ 11,67H,063 $ 169,697,926 l l 34 C -
A
% 4 U
. GAINESVILLE REGIONAL UTILIT.lES Sch:dule of Utility Plant Properties ,
- Combined Utility Fund t September 30.1989 - , ,
i 4 Utility Plant Properties l l Balance Sales and Balance 9-30-88 Additions Retirvrnents - ;9 30-89 , Pitt in s,crvice 4 L '; Ilectric utilityfund ' 71,139 5241,788,783 Production plant . . . , , , , , , , . . , , . . , , , 5240,763,789- 5 1,096,133 5 Nuclear fuel . , , . , . . . . - , , , , , , . , , . 3,780,884 ' 386,4 55 = - 4,167,339. Transmission and distribution plant . . . . 102,828,217 ' 7,725,521 1,352,35I .109,201,387-General and common plant , , , , , , , . 13,848,953 t 1,348,169 559,120 < 14,638,002 Plant unclassified. . .. . . , , , . , , . . 377,830 . i 377,830' 7htal electric utilityfund , , , . . . , , , , . , , . . 361,599,673 10,556,278 1,982,610 170,173,34I s Water utilityfund: , Supply, pumping, and - treatment plant - ,. . . . . , . . . . . . 12,584,366 - '263,579 12,320,787-
' transmission and distribution plant , , . . 50,520,923- 2,935,757 81,013 :53,375,667 -
General plant . . ...,, . . . , , 2,357,504 4 280,037 230,470 2,407.071-
- 7btal trater utilityfund , ,.,,. . . . 65,:162.793 3,215,794 575,662- , '68,103,525 ;
+
3 IGsstetrater utilityfund:
; Pumping and treatment plant , . . 30,5<.7,48e 2.592,964 563,395 32,577,057
- Collection plant , , , , . 50,176,020 3,223,495 62,128' 53,337,387
_ General plant , , , . . , , , , . . 3,592,089- 438,483-- 406,943' ', 3,623,629
; 7htal trasterrater utilityfund , , , , , . .
84,315,597 6,254.942 1,032,466 89,538,073 , 7btalplant in service. ,, , , , , , 5511,378,063 {20,027,014 5 3,590,138 ~ 5527,814,939 l Construction in progress
. Constructionfund:
Electric uttlity fund . . , , 5 2,107,800 5 1,810,685 5 1,353,716 5 2,564,769;
.,f Mater utility fund .. . , , , 182,162 1,576,917 .712,420 1,046,659 Wastewater utility fund . . 3,763,137 2,838,121 3,686,315- -2,914,943 I
7btal constructionfund. , . . . . . . , 6,053,099 6,225,723- 5,752,451 6,526,371 ,
-i lx- Utilityplant irnpwrensentfund:
Electric utility fund ..,, , , , , 3,907,727 8,211,298 9,149,769 2,969,256 whter utility fund . . , , , 537,855 2,899,884. 2,531,702- 906,037 Wastewater utility fund , , , . 194,955 2,301,809 2,005,586 "491,178 '
' 7htal utility plant improvementfund. . 4,640,537- 13,412,991 13,687,057 ' 4,366,471 7btal construction in pmgress, . , , , . $ 10,693,636 5'19,638,714 $ 19N39,508 5 10,892,842
)
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$ GAINESVILIM REGIONAL UTILITIES ,
Schedules of Accumulated Depreciation and Amo'rtization l0Imbined Utility Fund
~
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. epternber 30,1989 ' -
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' Accumulated Defireciation and Arnn?tliation
~ Balance Sales and * ' . Balance .
9-30-88 _ Additions : Retirvments 9-30-89 1 Electric utilityfurul: ..
+ . G
. Production plant l, . . . . . . .'. , . . . ,, . . . 8 63,272,384.., $ 6,975,972' 8 44,012 5 70,204,344 Nuclear fuel . . . . , , , , , , , . . . , , .' . 2,476,536, ~ 172,700 ' .
- c'2,649,236 i . +
Transmission and distribution plant , , , ,, 22,934,409- 2,824,482. 969,626 L 24,789,265 . General and comnion plant ;, . . . , p , , ,, 5,536,999 932,779' 298,461- "6,171,317 76tal electric utilityfund . , ' , , , , , , , . . ,, 94,220,328 10,905,933 1,312,099 103,814,162'
- - , 4 Nater utilityfund:
, Supply, pumping, and ,
treaiment plant , , , . , , , , , , .- ,
, . . 5,099,078. 356,374: 277,389 - 15,178,063- a
*ltansmission and distribution plant , , ,, .13,375,702 1,192,306 91,960 J14,476,048 General plant , , , , , , , , . , . . , , , , I,634,535 225,693 - 127,493 1,732,735 "
N>talicater utilityfund, , , . . . . . . , , , . , , 20,109,315 ' 1,774,373 496,842. - 21,386,846 i
":t
. nhsteu'ater utilityfund:
Pumping and treatment plant , , , . , , , , 4, 8,906,113 - 1,015,105' - - 9,921,218 Collection plant . , , , , , , , , , , , , , , , , ,, . 12,032,345 :1,000,605 62,128 12,970,822 General plant , , , , , , , , . , , , , , . .. 2,630,707 348,882-. 266,47D 2,713,169 .. ; W)/a/ n'asten'ater utt//ty plant , , , , , , , . . , ,. 23,569,165 2,364,592 328,548 -25,605,209 l 2 Witals , , , , , . ., , . , , . , , , , . , { 37,898,808 515,044,898 52,137,489 i $ 150,806,217l , ( p 3
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A KISSIMMEE: 1 Lg UTILITY j I ' " L AUTHORITY j
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,g l ;;h i w a lI COMPREHENSIVE LI FIN-ANCIALi REPORT:
TANNUAL
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- g Fiscal Year Ended i September GC,1989 I
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; KISSIMMEE UTILITY AUTHORITY COMPREHENSIVE ANNUAL FINANCIAL REPORT 1
SEPTEMBER 30,1989 ' o g-
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l .,, \ I'/,= I , eg - E g 8 g 9( ( l . t '$ JOSEPflflOSTETLER DIRECTOR OF FINANCE AARON WILKINSON MANAGER OF ACCOUNTING ! I 4 i
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INTRODUCTORY SECTION I s, ! g 5-
.I Listing of Officials-5 !
Table of Contents ' Ll 1.Atter of Transmittal ."" = Organizational Chart . "'y i g I / I 4 I I I ~ I
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( hs LI N i ! SUPPLEMENTAL INFORMATION Ns J . 13 y =""i" 1
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,g Supplemental schedules, although not necessary for fair presentation in ' ' " ' ' ' '
- I conformity with generally *,,.-
accepted accounting i= l principles, are presented to provide more detailed d' , .
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lg information than reported < l in the preceding financial statements. I
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.I XI$$1NMEE UilLITY AUTHORITY-SCNEDULE OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS BUDGET VERSUS ACTUAL
)i YEAR ENDED SEPTEMBER 30, 1989 VARIANCE FAVORABLE l
ACTUAL BUDGET '(UNFAVORABLE) OPERATING REVENUES l- Metered sales S 49,795,980 S. 49,748,350. S 47,630-
.-. Other operating revenues 766,856 640,600; 126,256 I
............ ............ ............. . g TOTAL OPERAIING REVENUES 50,562,836 50,388,950 173,886
-[
OPERATlWG EXPENSES Power generetton 9,734,643 11,040,661 1,306,018 Purchased power 12,916,048 13,442,587 526,539 ) Transmission 818,905 800,554 (18,351) Distribution 1,767,161 1,753,928 (13,233) < Customer Services 1,159,144 1,141,636 (17,508). Achinistrative and general 2,382,313-. 2,504,947 122,634-Peyment to the City of Kissimee 3,594,489 3,357,600 (236,889) .
-TOTAL OPERATING EXPENSES- 36,057,781 37,501,r13 1,444,132 t
.I OPERATING INCOME 14,505,055 12,887,037
-'1,618,018 NONOPERATING REVENUE (EXPENSES)
Interest revenue 4,098,482 2,140,000 '1,958,482 l
- Interest expense (7,615,629) (7,627,660) 12,031 TOTAL NONOPERATING REVENUE (EXPEkSES) (3,517,147) (5,487,660) 1,970,513 I INCCME BEFORE CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE-10,987,908
- 7,399,377 3,588,531 l
l: CUMULATIVE EFFECT OF A CHANGE IN I l^ ACCOUNTING PRINCIPLE 1,037,691 - 1,087,691
- = NET INCOME 12,C75,599 7,399,377 4,676,222 -1 l
l: RETAINED EARNINGS AT BEGINNING OF YEAR 30,023,143: 30,023,143 - l RETAINED EARNINGS AT END OF YEAR S 42,098,742 S 37,422,520 S 4,676,222' 333833333333 33samaWWENB3 3333358333333 i I C ? 4
KIS$1MMEE UTILITY AUTHORITY SCHEDULE OF DE8T SERVICE REQUIREMENTS TO WATURITY l., ALL SERIES '3-SEPTEMara 30,'1989 t SERIES TOTAL , Sou0' ........................................... DE8T SERVICE . YEAR 1982A 1985 1987 REQUIREMENTS 1989 8 1,128,150 $ 3,023,160 $ 4,522,258 8 8,673,568 1990 1,126,450 3,028,523 4,516,508 8,671,481 ' 1991 1,458,738^ 3,020,872 4,519,568 8,999,178 1992 1,449,237 3,025,993 4,520,937 8,996,167 .i 1993 1994 3,027,692 3,020,833 5,975,537. 5,970,538 9,003,229 8,991,371
'l-W 1995 - 3,025,920 5,967,057 8,992,977 1996- -
3,021,680 5,969,198 8,990,878 g. 1997 1998
-3,018,680 3,026,435-5,955,717 5,951,448 8,974,397 8,977,883 g
1999- - 3,023,625 5,824,747' 8,848,372 2000 - 3,030,545 5,829,382 8,859,927 2001 - 3,020,625 5,661,942 8,682,767 2002 - 3,030,175 5,668,505 8,698,680 2003 - 3,022,300 5,663,050 8,685,350 2004 - 3,023,050- 5,670,065 8,693,115 l; 2005 - 3,021,150 5,668,345 8,689,495 'W 2006 - 3,026,175- 5,667,555 8,693,730 2007 - 3,026,850 5,461,690~ 8,488,540 . 2008 - 3,022,750 5,668,480 8,691,230; ; 2009 - 3,023,450 5,656,040 8,679,490 2010 - 3,021,973 5,670,580 8,692,555 2011 - 3,023,350 '5,669,040 8,692,390-2012 - 3,026,925 5,671,080 8,698,005 2013 - '3,022,050 - 3,022,050-2014 - 3,028,725 - '3,028,725 2015 2016 3,025,650 3,022,825 3,025,650 3,022,8251 g< g. 2017 - 3,024,600 - 3,024,600
............ ........... ............. ............. I S 5,162,575
- 87,706,783 S 133,319,267 S 226,188,625
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p i KIS$1 mEE UTILITY AUTHORITY SCHEDULE OF BONDED DEST AND INTEREST REFUNDING REVENUE BONDS
- SERIES 1982A SEPTEMBER 30, 1989 JNTEREST SOND INTEREST ** *** . . .....
- PRINCIPAL- TOTAL DEST f YEAR . RATE
- X DUE APRIL 1 DUE OCTOBER.1 DUE OCTOBER 1 -SERVICE
\ ......... ........ .............. ............. ............. ............
1989 7.00 $ 159,075 8 159,075 $ 810,000 8: 1,128,150 r 1990 7.25 130,725 130,725 865,000 1,126,450 ( 1991 .7.50 .99,369 99,369 1,260,000- 1,458,738-1992 7.75 .52,119 52,118 1,345,000 1,449,237 S 441,288 8 441,287 8- 4,280,000 $ 5,162,575 i l t i i i l I l l i 1 l. I I i i ! f l l ' j l 4 h 3 C-5 L i' t
I i KIS$1MMEE UTILITY AUTHORITY j SCHEDULE OF BONDED DEST AND INTTREST-REFUNDINO REVENUE SONDS SERIES 1985 SEPTEMBER 30, 1989
.)
INTEREST-BOND INTEREST ==**.*- ************==*** - PRINCIPAL TOTAL DEST - RATE % YEAR 'DUE APRIL 1 DUE OCTOBER 1 DUE DCTOBER 1 SERVICE-1989 6.75 s 1,329,080 s 1,329,080 S 365,000 $ 3,023,160-1990 7.00 1,316,762 1,316,761 395,000 3,028,523-1991 7.20 1,302,936 1,302,936 415,000 ~3,020,872 1992 7.40 -1,287,997 1,287,996 450,000 3,025,993 1993 7.60 1,271,346 1,271,346 485,000 3,027,692 ' 1994. 7.75 1,252,916- '1,252,917- $15,000 =3,020,833 1995 7.90 1,232,960- 1,232,960 560,00u 3,025,920 'J 1996 8.00 1,210,840. 1,210,840 600,000 3,021,680 1997 8.10 1,186,840 1,186,840 645,000 3,018,680 1998 8.20 1,160,718 1,160,717 705,000 '3,026,435 1999 8.30 1,131,813 1,131,812 760,000 3,023,625
-l '
2000 8.40 1,100,273 1,100,272 830,000 3,030,545 2001 8.50 1,065,413 1,065;412 890.,000 3,020,825 2002 8.50 1,027,588 1,027,587 975,003- 3,030,175 2003 8.50 986,150 986,150' 1,050,000 3,022,300 2004 8.50 941,525 941,525 1,140,000 3,023,050 l 2005 8.50 893,075 893,075 1,235,0 M .3,021,150 2006 8.50 840,588 840,587 1,345,000 3,026,175 2007 8.50 783,425- 783,425 1,460,000 3,026,850
)
8.50 2008 2009 6.50 721,375 654,225 721,375 654,225' 1,580,000 1,715,000 3,022,750 3,023,450 li W j l- 2010- 6.50 598,488 598,487 1,825,000 3,021,975 1 2011 6.50 539,175 539,175 1,945,000 3,023,350- l 2012 6.50 475,963 475, % 2 2,075,000 3,026,925 2013 6.50 408,525 408,525 2,205,000 3,022,050 1 2014 6.50 336,863 336,862 2,355,000 3,028,725 , 2015 6.50 260,325 240,325 2,505,000 3,025,650-I 2016 6.50 178,913 178,912 2,665,000 3,022,825 i4 2017 6.50 92,300 92,300 2,840,000 3,024,600 1 ............. ............. ............, ............ l s 25,588,397 $ 25,588,386 s 36,530,000 $ 87,706,783 ) j
)
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4 a ~ KISSIMMEE UTILITY AUTHORITY SCHEDULE OF SONDEO DEBT AND INTEREST REFUNDING REVENUE 80NDS SERIES 1987 SEPTEMBER 30, 1989 1 INTEREST SOND INTEREST *""""""*""""*""aa PRINCIPAL TOTAL DEBT YEAR RATE % DUE APRIL 1 DUE OCTOBER 1 DUE OCTOBER 1 UERVICE
........ .....=..
1989 4.20 SL 2,073,629 S 2,073,629 S: 375,000 'S 4,522,258- - I 1990 1991 4.40 4.60 2,065,754 2,057,284 2,065,754 2,057,284 385,000 405,000 4,516,508 4,519,568 1992 4.80 2,047, % 9 2,047,968 425,000. 4,520,937 1993 5.00 2,037,768 2,037,769- 1,900,000 5,975,537 l 1994 1995 5.20 5.40 1,990,269 1,938,529 1,990,269 1,990,000 5,970,538 1,938,528 2,090,000 5,967,057 1996 5 60 1,882,099 1,882,099 2,205,000. 5, % 9,198 1997 5.80 1,820,359 1,820,358 2,315,000 5,955,717 l 1998 6.00 1,753,224- 1,753,224 2,445,000 5,9!!,448 1999 6.10 1,679,874 1,679,873 2,465,000 5,824,747 . 2000 6.20 1,604,691 1,604,691 2,620,000 .5,829,382-2001 6.25 1,523,471 1,523,471 2,615,000 5,661,942 2002 6.30 1,441,753 1,441,752 2,785,000 5,668,505 ) 2003 6.70 1,354,025 1,354,025 2,955,000 5,663,050 2004 6.70 1,255,033- 1,255,032 3,160,000 - 5,670,065 2005 6.70 1,149,173 1,149,172 3,370,000 5,668,345 2006 .., 6.70 1,036,278 1,036,277 3,595,000 5,667,555 2007 6.70 915,845 l 915,845 .3,630,000- 5,461,690- ; 2008 6.80 794,240 794,240 4,080,000 5,668.480 I 2009 2010 6.80 655,520 655,520- 4,345,000 5,656,040 3 6.80 507,790 507,790 4.655,000 5,670,580 1 2011 6.80 349,520 349,520 4,970,000 5,669,040' l ..... d?. ..... d!. ...'fid!L . 5:h * . S 34,114,637 $ 34,114,630 S 65,090,000 S 133,319,267 l! i a 1 l i C-7
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l I o i f ] I s N - I k I o : I _ L Ns i - 8 STATISTICAL Ns SECTION
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Statistical tables differ from '.- l l financial statements because- "i, i they usually cover more , ,,, .,, , g than one fiscal year and may .* present non-accounting data. . "" ' These tables reflect social
=) i e and economical trends of the . " '[ (
i- Kissimmee Utility Authority. !I !I LI ; LI J tI u n -, .. .. ....,-, ..,, . -, - m wr ,-,,,~---,,r
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\ . i K!S$11#4EE UTILITY AUTHORITY - TABLE 1 OPERATING REVENUES BT SOURCE /0PERATING EXPENSES BY DEPARTMENT LAST TEN FISCAL YEARS-l DPERATING REVENUES: . SOURCES 1989 1988 1987 1986 METERED SALES S 49,647,743 S 42,094,838 $ 41,805,328 S 34,794,795 W-PUBLiC STREET & MIGHWAT LIGHTING 87,536 87,169 82,042 76,281 , SALES TO OTHER UTILITIES 5,371 - . 1,887 + INTERDEPARTMENTAL SALES 55,330 19,434 725,063 788,838 k 4 OTHER OPERATING REVENUES 766,856- 770,138 647,019 580,517 TOTAL OPERATING REVENUES. S 50,562,836 S 42,971,579 S 43,259,452 S 36,242,318
................ .................. ................. ................. {
OPERATING EXPENSES: ( DEPARTHENTS 1987- 1987 1987 1986' )
................................. ................ ................. ................. ................. g BUDGET & AUDIT $ 147,781 S 122,159 S 150' S .
gl NUCLEAR POWER GENERATION. 884,533 1,027,636 879,544 785,795 OTHER POWER GENERAT10N (1) 8,850,110 '6,784,651- 4,839,234 4,389,997 PURCHASED POWER (1) TRANSMI$$10N 12,916,048 818,905 10,232,845' 656,736 12,231,779 688,632; 10,722,351 579,865 h} g. DISTRIBUTION 1,223,593 914,551 1,100,826 925,953 PLANNING & ENGINEERING $43,568- 429,805 437,272 317,139 . CUSTOMER SERVICE 1,159,144 977,081- 597,353 450,234 - EXECUTIVE 166,770 128,414 160,916 212,014 i ADNINISTRATIVE & GENERAL 930,262 884,633 1,506,908 1,698,993 ! PAYMENT TO CITY OF KISSIMMEE (2) 3,594,489 3,194,276 3,330,166 2,321,885 DEPRECIATI0h 3,715,073 3,475,030 2,483,376 2,370,378 l ACCOUNTING (3) 86,485 125,756 1,909 - INFORMATION PROCESSING (3) 192,137 266,001 3,696 -
- FINANCE (3) 118,854 327,996 '32,311 MATERIALS MANAGEMENT (4) 245,570 . . .
l' gl PERSONNEL & RISK MANAGEMENT (3) 464,460 407,841 251,063 . TOTAL OPERATING EXPENSES S 36,057,781 $ 29,955,411 S 28,695,135 S' 24,774,604 I' h[ (1) Information separating Purchased Power from Other Power Generation
- was unobtainable for the years 1978 to 1981.
(2) Payment to City of Kissimee prior to 1986 was considered a non operating expense. (3) These departments were created during 1987. E': g-! (4) This department was created during 1989. ' I IL
- i. D-4 I'
- s F-L' 1985 1984 1983 1982 -1981 1980
$ 33,252,960 8 26,029,118 $ 23,768,402 $ 18,797,493 $ 10,844,014 $- .12,918,663 82,322 84,313 68,773- 60,655 65,866 59,233 183,380 595,123 116,685 528,161 1,059,874l 793,066' 758,774 606,824 509,989 362,643 313,300 261,352-565,162 619,121 242,998 ~ _179,931- 6,786,276 -171,798
$ 34,842,602 $ 27,934,499 $ 24,706,847 $ 19,928,883 $ 19,069,330 j
$_ 14,204,112- '
1985 1984 1983 1982 [- 1981 1980 1,076,424 797,136 823,054 518,277 409,157 .389,654 ! ( 6,016,859 10,571,234 9,399,901 5,564,182-4,895,406 9,486,552 3,555,398 8,217,056 11,660,394. 9,260,197
$11,852 484,400 345,633 250,299 _194,599 .99,079 765,448 494,343 741,607 706,923 277,516 233,300 360,424 284,780 330,945 273,009. 207,412l '159,501 457,097 607,734 267,511 -226,484 187,050 153,161
278,324 198,706 213,362 127,300 149,321 - 160,757 f 1,278,601 -1,456,651' 952,603 1,121,554 1,002,333 [ . . . . . 320,512 i 2,239,552 1,527,630 1,032,233 976,554 920,609: 730,665 f-
. . . . i
^t . . .
$ 23,555,815 $ 20,815,463 $ 19,088,906 $ 15,972,854
$. 15,008,391 $ -11,506,826 [
( D-5
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. - . - - - - . . . . - . . - . _ . - - - _ . - - . . - - . . . . . . - ~ _ . . _ - - - - _ _ _ - _ _ _ _ _ _ _ .
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l KISSIMMEE UTILITY AUTHORITY TABLE 2 - l~ ;
- CLIMATE Ra Average Monthgmee,infall Kissi & 'Temperature-Florida J g' L Rain Temperature (Inches) (Degree F) l, January 2.20- 60 3!
February 2.28 62 g, ' March 3.46 66' April-May 2.72 2.94 71 76
's 1 June 7.11 80 E ;,
July 8.29 82 August- 6.73 82 September 7.50 '80 : October 4.57 79' November 1.56 67 3' December 1.90 62 33 Annual Avg. Monthly 4.27 72 -- g.; r
' SOURCE: Kissimmee/Osceola County Chamber of Commerce I, ,
Il , I I Io I' I I D-6 I- \- ;
s J l KISSIMMEE UTILITY AUTHORITY-
- TABLE 3 PULATION FORECAST Pgriendo Metro Area (MSA) 1980 1985 1988 1995 '2005 Kissimmee 15,487 22,929 29,539 '46,028, 57,719-Osceola County 49,287 77,374- 92,401 130,700- -171,700 Orange County 471,016 554,659 624,305 744,800- 864,300 i l Seminole County 179,752 229,937 271,717 '343,100 431,300 Lake County 104,870 124,278 137,439 '171,900 .203,400 Source: of Kissimmee, Comprehensive Plan-CigFRPC, E Quarterly Report Second Quarter 1988
" Current year figures were not available.
I > I I , I i l l l l f _ -
t 1 I KISSIMMEE UTILITY AUTHORITY
- TABLE 4 l
TEN HIGHEST METER LOCATIONS' ELECTRIC Annual Consumption ' i Customer ' - (MWH) = E 1. Kissimmee Memorial Hospital 5,320 i 2i Weathashade Corporation: 5,135'
- 3. Humana Hospital 4,605' .
- 4. Publix #351 4,084
- 5. Martin Brower - 3,697 6 Larson Drainage System 3,040-
- 7. Publix #136 2,631 l
- 8. Publix #228- 2,588 -
- 9. K Mart #3604 2,502
- 10. Academy Housing, Inc. 2,452 SOURCE: Kissimmee Utility Authority, Budget & Audit Division. .
4 L I. . l 7 r 1 1.. I I: I e., I .
s ~
- KISSIMMEE UTILITY AUTHORITY TABLE 5 COMPARATIVE COST OF LIVING E
MISC. GOODS &. OVERALL GROCERY HOUSING UTILITY TRANS HEALTH ' SERVICES Kissimmee (1) Orlando 99.3 99.8 102.0 93.2 92.5 :97.3 102.5'- Sanford - (1) Miami 110.1 101.7 113.3 132.2 99.6 127.2 104.8 Leesburg 97.3 97.9 91.3 99.2 97.0 -88.9 -.102.8.
-l
[-. SOURCE: American Chamber of Commerce Researchers Association- { (1) Current year figures were not available. I 1 {- [ i 3 i D-9
1 IL l KISSIMMEE UTILITY AUTHORITY . l- . TABLE 6 INSURANCE- j I COMPANY TYPE OF COVERAGE , DED./AGG. MAXIMUM d I l FLORIDA LEAGUE OF CITIES GENERAL LIABILITY - 10M/1 MIL. l1l 1 FLORIDA LEAGUE OF 3 CITIES WORKERS COMPENSATION ' $0/FL. STAT.- E? HARTFORD STEAM . m.l BOILER PRIMARY PROPERTY 10M/ SCHEDULED g; HARTFORD STEAM g. BOILER BOILER & MACHINERY SCHED/SCHED INTERNATIONAL PUBLIC OFFICIALS SURPLUS LIABILITY $25,000/1 MIL AETNA INSURANCE FIDUCIARY LIABILITY $250,000 MAX THE HARTFORD HARTFORD INSURANCE PUBLIC OFFICIAL BOND FAITHFUL INSURANCE
$250,000 MAX lf COMPANY OF S.E. BOND $250,000 -
THE HARTFORD - . CRIME / DISHONESTY $250,000 HARTFORD STEAM BOILER DATA PROCESSING SCHEDULED-METROPOLITAN INSURANCE MAJOR MEDICAL $200-80/20 - -( METLIFE INSURANCE HMO $5/25/100 CO PAY - PRUDENTIAL LIFE & AD&D SCHEDULED BY INSURANCE COMPANY INSURANCE SALARY l SOURCE: Kissimmee Utility Authority, Personnel Department 'i I I D-10 -
a .e q KISSIMMEE UTILITY AUTHORITY i i F CUSTOMER, SALES AND LOAD FORECAST I y TABLE 7 l CUSTOMER FORECAST , 1 CLASS 1987?' 1992' 1997 2002 2007 RESIDENTIAL - 209 % 27070 32458 37076' 41203 GENERAL SERVICE NON-DEMAND 3062 3485 3995 4505 5015 -l 4 GENERAL SERVICE DEMAND 49 45 53 60 - 66. t
...... ...... . . . . ...... ...... 1 24107-- 30600 36506- 41641 46284 I SALES FORECAST (GWH)
CLASS 1987* 1992 1997 2002 2007 { RESIDENTIAL 234.7 295.4 357.5 410.7- 458.3 -(, GENERAL SERVICE NON DEMAND 167.3 266.7 378.5 . 503.5 636.5
-1 GENERAL SERVICE DEMAND 69.8 77.5 102.4- -129.5 157.9-( ....... ........ ..
l 471.8 639.6 838.4 1,043.7 1,252.7
,..... ...... ...... ....... ...e... -l LOAD FORECAST (MW) l 1987* 1992 1997 2002 2007 PEAK DEMAND 115 183 240 299 359
-l
- ACTUAL VALUES
{ information taken from Appendix B, Load Forecast, of the Black & ' Veatch Power Supply Study. l D-11
KISSIMMEE UTILITY AUTHORITY , TASLE8 FISCAL YEARS ENDED 1989 1985 CONSUMPTION STATISTICS (MWH) .
,,,,_ _C_LA_ss _ _ _ _ 198,,9. _ _ 19.88 j987_ 1986 1995 RESIDENTIAL 276,913 P44,995 234,673 206,078 186,550 m GENERAL SERVICE 47,261 35,416 31,782 29,942 28,778 >
GENERAL SERVICE DEMAND 190,721 178,727 162,973 143,257 121,885' - GENERAL SERVICE TIME OF USE 1,639 1,350 1,257 --- --- i GENERAL SERVICE LARGE DEMAN 55,697 47,225 40,109 29,572 28,106 - _
. STREET LIGHTS 942 1,028 931 796 866- -
INTERDEPARTMENTAL USE 218' 291 2,648"
~
VAPOR UGHTS 1.322 --- --- --- 576,040 510,353 471,724.. 409,644 366,155
- REFLECTS USAGE FOR THE MONTHS OCT THROUGH JAN ONLY, #
" REFLECTS USAGE FOR THE MONTHS OCT THROUGH JULY ONLY, I.
-i CUSTOMER STATISTICS CLASS 1989 1987 -1985-
--------- -- 1988 . --- - 1986 RESIDENTIAL 24,463 22,234- 21,288 19,427 18,091 GENERAL SERVICE 3,492 2,757 2,453 2,234 2,136 I GENERAL SERVICE DEMAND 780 734 691 580 503 GENERAL SERVICE TIME OF USE 6 5 5 --- ---
GENERAL SERVICE LARGE DEMAN 21 16 15 10 10 STREET UGHTS 24 22 .13 12 12 w INTERDEPARTMENTAL USE 7 6 _ , , , , , -- ---
~ VAPOR UGHTS 1,219 1,171
"* 28,793 25,774 24,465 22.263 20,752
* *
- TOTAL DOES NOT INCLUDE VAPOR LIGHTS. j I
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, r r-- , , .x , ., ,
J - - ,- , , c , POPULATION & EMPLOYMENT GROWTH IN OSCEOLA COUNTY TABLE 9 8.0 ^ - - - - - - - - - - - - - - - - ~ ~ ~ ~ - - I AdAl114 80 81 82 83 84 85 86 87 88- 89 '. 90 91 92 YEARS E POPULATION V/d EMPLOYMENT Source: Eco. Dev. Comm. of Mid-FL, Inc.
i i t KISSIMMEE UTILITY AUTHORITY ! TABLE 10 i OSCEOLA COUNTY GROWTH , i I 1987 1988 , 1989 1990 1991 1992 i i l Population (000) 87.6 94.0 99.9 104.6 109.0 113.2 ( i Growth 4,7 4.4 4.2 I 5.0 6.5 5.9
% change 6.1 7.4 6.3 4.7 4.2 3.9 Employment (000) 29.1 32.1 33.1 35.4 37.9 40.2 Growth 2.5 2.9 1.0 2.3 2.5 2.3
% change 9.5 10.0 3.1 7.0 7.0 6.1 income ($ bils.) 1.2 1.4 1.5 1.7 1.9 2.2 q
% change 9.5 13.0 - 9.5 10.4 13.4 12.4 !
Unemployment (%) 4.5 4.4 5.2 5.5 5.1 7.2 Total starts 2,861 4,1 " 3,353 4,061 4,540 5,010 Single 1,988 2,51 7 2,301 2,393 2,391 2,609 l Multi 873 1,636 1,052 1,669 - 2,149 2,401 Total Com'l ($ mils.) 79 58 55 53 136 45 < l Bank Dep ($ bils.) 0.4 0.5 0.6 0.6 0.6 0.6 l SOURCE: Economic Development Commission of Mid Florida,Inc, l I< . D-14 I"
! [
I " b I ' I P I \ b b. FINANCIAL SECTION ' l \, ! g - ,gi
! Auditor's Report
., i General Purpose Financial Statements , . "/
L g Notes To Financial Statements I I ; I I I I l
.= . . _ _ . _ _ _
.aan-.--~a.~- 3 man-- -.a---- - - ------.-~~+-.------------a .--n-- . - - ------- -
9 ) k.[e l l I - l I i I l s 1 l I I I! I Il I I I , I 1 [ IW l I I; 1
-..--..%-..m.-. . . . - . . . , .-. _ . . , - - - - - --. .--.. . - - . . - -, ~,-. .. - ~ .... . - . . - . - _ . . . ., . . . - . . - - . -,- - . - - . -m,--..-..--_w ...0
i a m a ovu e eccoun o n Coo >ers i
&Lyarand g 1 1
I gpORT OF INDEPENDENT ACCOWTANTS l
)
Board of Directors I Kissimmee Utility Authority I We have audited the accompanying balance sheets of the Kissimmee Utility. Authority as of September 30,1989 and 1988, and the related statements of revenue, expenses and changes in retained earnings, and state'ments of changes in financial position
)
for the years ended September 30, 1989 and 1988. These financial statements are j I the responsibility of the Authority's management. Our responsibility is to express an opinion on these financia*.. statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable ; assurance about whether the financial statements are free of material I misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significan. estimates made by I I management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. 1
]l In our opinion, the financial statements reforu d to above present fairly, in all ]
I material respects, the financial position of tne Kissimmee Utility Authority as of September 30, 1989 and 1988, and the results of its operations and its changes in financial position for the years then ended in conformity with generally accepted j accounting principles. As discussed in Note 1 to the financial statements, in 1989 the company changed its method of recording revenues by accruing the non fuel portion of base revenues I for services rendered but unbilled. l Our audit was conducted for the purpose of forming an opinion on the basic I financial statements taken as a whole. The introductorv, statistical, and supplemental information sections are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such j I
- g information, except for the introductory and statistical sections, on which we l i3 express no opinion, has been subjected to the auditing procedures applied in the '
I audit of the baric financial statements and, in our opinion, is fairly stated, in l all material respects, in relation to the basic financial statements taken as a whole. l Tampa, Florida l December 21, 1989 I l B-3
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B-5 F'...._.-.-..-_._-.--.....-.._
J 3 J Il KISSIMMtt UTILITY AUTHORITY q BALANCE SHttTS SEPTEM9tR 30, 1989 AND 1988 l l AsstTS 1989 1988 ; UTILITT PLANT Property, plant and equipment S 114,101,034 s 107,369,'47 l ;j less acew ulated deprecistton (26,000,407) (22,315,329) 3
............ ............ l 88,100,627 85,054,138 ,
Construction in progress 7,579,600 2,276,070 l snventory nuclear fuel 703,997 555,680 TOTAL UTI TY PLANT 96,344,224 87,885,888 - RESTRICitD ASSETS Debt service
- cash, investments and g accrued Interest 14.414,877 14,072,692 g Construction a cash, investments and accrued interest 2,467,994 5,070,242 Customer deposits 1,793,285 1,696,549 l
............ ............ 3 TOTAL RESTRICTED ASSETS 18,676,156 20,839,483 DislGNAft0 AS$tTS Cash, investments and accrued interest designated for specific purposes 21,513,853 19,512,240 Deferred compensation plan assets 310,319 250,572 3-g TOTAL DESIGNATED AS$tTS 21,824,172 19,762,812 CURRENT ASSETS Cash and investments 10,413,500 7,734,099 Accounts receivable 8,306,889 5,266,884 less ellowance for doubtful accounts (875,544) (598,019)
Notes receivable 28,802 30,378 inventory 2,965,907 2,477,691 -W Prepaid expenses 1,580 23,466 Due from other governments 393,210 237,168 - Deterred cost of power adjustment 25,17t;
- TOTAL CURRENT ASSETS 21,259,522 15,171,667
! OTHER ASSETS i unamortised bond costo 1,184,696 1,243,589 l i ! TOTAL ASSETS S 159,328,770 $ 144,903,439 i sessessasses sesseessenes See acccapanying notes. I B-6
i CAPITALIZAfl04 AND LIABILlflis 1989 1988 CAPITAll2ATION Retained earninBat Reserved for debt service S 10,503,231 5 10,503,231 Unreserved 31,595,511 19,519,912 TOTAL ktTAINED EARNINGS 42,098,742 30,023,143 Contributed capital 4,851,765 3,600,615 TOTAL CAPITALIZAfl0N 46,950,507 33,623,758 LDNG TERM Dtti Revenue Bonde payable 104,350,000 105,900,000 lesse unamortised bond discount ~(5,585,316) (5.914,916) TOTAL LONG'ItRM DEBT 98,764,684 99,985,084 CURRENT LIABILifits (PAYABLE FROM RESTRICTED AS$tTS) Current portion of revenue bonda 1,550,000 1,36h,000 Accrued Interest payable . revenue bonds 3,561,784 3,602,540 Contracts /retaineBes payable f rom construction 344,455 213,714 Customer deposits 1,793,285 1,696,549 TOTAL CURRENT LIABILillt$ (PAYABLE FROM RESTRICTED ASSET $) 7,249,524 6,877,803 DEllGNATED LIABILITits (PAYABLE FROM DESIGNATED ASSETS) Contracts /retalneges payable from desl Bnated assets 906,281 81,292 Due to employees under deferred conpensation plan 310,319 250,572 TOTAL DESIGNATED LIABILIT![S (PAYABLE FROM DESIGNATED ASSETS) 1,216,600 331,864 CURRENT LIABILillts (PAYABLE FROM CURRENT ASSETS) Accounts payable 2,006,875 1,464,362 Due to City of Klasimmee 2,114,043 1,475,435 Accrued taxes payabie 388,007 327,$d8 Accrued salaries 115,267 99,083 Pension plan liability 252,802 209,111 Accumulated unused compensated absences 270,461 236,213 Deferred cost of power adjustment - 272,834 TOTAL CUPRtNT LI ABILITIES (PAYABLC FROM CURRENT ASSETS) 5,147,455 4,084,930 TOTAL LIABILiflES 112,378,263 111,279,681 TOTAL CAPITALIZATION AND LIABILITits S 159,328,770 5 144,903.439 N B-7
J l KitSIMMEE UTILITY AUTHORITY STATEMENT OF REVENUE, EXPEN5ES AND CHANGE $ IN RETAlWED EARNINC$ ; YEARS ENDED $EPTEM6ER 30,1989 and 1988 I, 1989 1988 OPERAflNG REVENUES I Metered 6eles S 49,795,980 8 42,201,441 l Other operating revenues 766,856 770,138 ;
............ ............ j TOTAL OPERAtlNG REVENuts 50,562,836 42,971,579 i OPERAflNG EXPENSES i Power poneration 9,734,643 7,812,287 ;
Purchased power 12,916,0'.8 10,232,845 ; frenamission 818,905 656,736 D1etribut1on 1,767,161 1,344,356 Customer s.rvices 1,159,144 977,081 Aeninistrative and general 2,582;313 2,262,800 Payment to the City of Kissinsnee 3,594,489 3,194,276 Deprocletion 3,685,078 3,475,030 TOTAL OPERATING EEPENSE8 36,057,781 29,955,411 i OPERAllWG INCOME 14,505,055 13,016,168 - WONOPERAflNG REVENUE (EXPENSES) Interest revenue, 4,098,482 3,084,796 Interest expense (7,615,629) (7,798,943) ; TOTAL NONOPERATING REVENUE (EXPENSE $) (3,517,147) (4,714,147) ! INCOME BEFORE CUMULAtlVE EFFECT OF A CHANGE IN ACCOUNTlWG PRlWCIPLE 10,987,908 8,302,021 CUMULAflVE EFFECT 10 SEPTEMBER 30, 1989 0F .. ACCRUING UNSILLED REVENUES 1,087,691 - *
............ ............ 1 NET INCOME 12.075,599 8,302,021 >
RETAINED EARNINGS AT BEGINNING OF YEAR 30,023,143 21,721,122 Il j 1 RETAlWED EARNINGS AT END OF YEAR S 42,098,742 l'30,023,143 ; seesmosasase seassessesse 1 4 See acconpenying notes. I Il l B-8 I-. ! 1
a KIS$1 Mutt UtlLITY AUTHOM (Y STAf tMEWit CF CHANGES IN FINANCI AL Pot! TION s Y(ARS (NL(D $tPf!Mg(R 30, 1989 and 1988 1989 1988 p SOURCIL 0F WORKlWG CAPITAL ............ ............ L From operationes income before twulative ef fect of a change in Accomting Principle 8 10,987,W8 8 8,302,021 Add Empenses not creating current liabilities or [ using current assets - Depreeletion- 3,685,078 3,475,030 Amortlantion of band discount 329,600 329,600 { Working capitet provided f rom operations 15,002,586 12,106,651 Caulettve effect of a change in Accounting PrinctPle 1,087,691 . 16,090,277 12,106,651 Decrease in restricted assets 2,163,327 .
- [ increase in LlablLities payable from restricted assets 371,721 866,019 increase in designated liabilities 884,736 .
Decrease in other assets 58,893 58,893 Contributione 1,251,150 1,123,479 { ............ ............ TOTAL $00RCES OF WORKING CAPITAL 20,820,104 14,155,042 APPLICAtl0NS OR WORKlWG CAPITAL Acquisition of utility plant 12,183,414 4,683,731 Increase in restricted assets - 181,494 Increase in designated assets 2,061,360 7,195,733 Decrease in designated (labilities + 169,254 Retirement of tong. term debt 1,550,000 1,365,000 TOTAL APPLICATIONS OF WORKING CAP 11AL 15,794,774 13,595,212 INCREASE IN WORKING CAPliAL $ 5,025,330 $ $59,830 lWCREASE (DECREA5[) IN COMPONENT ELEMENTS OF WORKlWG CAPlfAL Cash and investments S 2,679,401 5 680,603 Accounts receivable (net) 2,762,480 245,136 Notes receivable (1,576) (. Prepold expenses Inventory (21,886) 153 23,466 488,216 352,685 Due from other goverrvnents 156,042 119.345 [ Deferred cost of po.eer adjustment 298,012 (619,713) l Accounts payable (542,513) 797,207 Due to City of Kissinnee (638,604) (772,530) Accrued taxes payable (60,119) (132,528; Accrued salaries (16,184) 44,942 Pension plan liablLity (43,691) (2Q9,111) Accunulated unused compensated obsences (34,248) (51,392) Deposits payable . 81,567
............ ............ l INCREASE IN WORKING CAPITAL S 5,025,330 S 559,830 See accompanying notes.
B-9
I KISSIMMEE UTILITY AUTHORITY NOTES TO THE FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 1989 AND 1988 1.
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Kissimmee Utility Authority (KUA). are presented in conformity with generally accepted accounting principles. I' The statements are substantially in conformity with accounting-princi- l ples and methods prescribed by the Federal Energy Regulatory Commis- 5 , sion and other regulatory authorities, j Entity Definitions: The accompanying financial statements present the financial position, results of operations and changes in financial position of the KUA in accordance with NCGA Statement No. 3, " Defining , the Governmental Reporting Entity", and subsequent interpretation . No. ! 7 clarifying the application of Statement No. 3. The reporting entity' for the KUA includes all functions in which the Board of Directors exercise oversight responsibility. Oversight responsibility includes, l ;i but is not limited to, financial interdependence, selection of govern- 5: ing authority, designation of management, ability 'to significantly i influence operations and accountability for fiscal matters. - As a ml result of applying the above reporting entity criteria, no other l' l cortponent un$ ts exist in which the KUA has any oversight responsibili-ty which wouM require inclusion in the KUA's financial statements. The Kissimmee Utility Authority was created effective october 1, -1985 by the City of Kissimmee Ordinance #1285 adopted on February 19, 1985 and ratified by the voters on March 26, 1985. The Authority Board has , 6 members. The Mayor of the City of Kissimmee.:is a non-voting Ex-Officio member. The 5 voting members are nominated by the Board and ratified by the City Commission. The Authority has exclusive a jurisdiction, control and management of the electric utility and the following factors indicate that the KUA is properly. excluded from the l City's financial statements: 1
- 1. Subsequent to Board appointments being ratified by the City Commission, there is no continuing relationship. .,
- 2. KUA management is selected by the Board and although the City currently-provides services by management contracts, those functions are controlled by KUA. +
- 3. The city has no authority to interfere with KUA's operation, m.
- 4. KUA is responsible for its financial affairs including rate g setting and the disposition of any surplus, i
- 5. The City does not guarantee KUA's outstanding debt.
I I . I;
s / \ NOTES TO THE FINANCIAL STATEMENTS s Regulation: According to existing laws of the State of Florida, the cix members of the KUA act as the regulatory authority for the estab-r lishment of electric rates. The Florida Public Service Commission L (FPSC) has authority to regulate the electric " rate structure" of municipal utilities in Florida. It is believed that " rate struc-tures" are clearly distinguishable from the total amount of revenues ( which a particular utility may receive from rates, and that distine-tion has thus far been carefully made by the FPSC4 ( As noted above, the FPSC has jurisdiction to regulate electric " rate L- structures" of municipal utilities. In addition, the Florida Energy Efficiency and Conservation Act has given the FPSC exclusive authority r to approve the construction of new power plants under the Florida ( Electrical Power Plant Siting Act. The FPSC also exercises jurisdic-tion und3r the NatiQnal Energy Act, including electric use conserva-tion programs. Operations of the KUA are subject to environmental regulations by Federal, State and local authorities and to zoning regulations by local authorities. Federal and State standards and procedures that govern control of the environment can change. These changes can arise from continuing legislative, regulatory and judicial action respecting the standards and procedures. Therefore, there is no assurance that the units in operation, under construction, or contemplated will olways remain subject to the regulations currently in effect or will always be in compliance with future regulations. An inability to comply with environmental standards or deadlines could result in reduced operating icvels or complete shutdown of individual olectric generating units not in compliance. Furthermore, compliance with environmental standards or deadlines may substantially increase capital and operating costs.
] l Basis of Accounting: The Financial Statements are presented on the cccrual basis of accounting. Under this basis, revenues are recog-nized in the period earned and expenses are recognized in the period incurred.
Budget: The Kissimmee Utility Authority is required by charter to adopt an Annual Budget. -The Budget is adopted on a basis consistent with generally accepted accounting principles. The Kissimmee Utility Authority follows these procedures in establish-ing the annual budget:
- 1. The General Manager submits to the Board of Directors a proposed operating budget for the ensuing fiscal year. The l operating budget includes proposed expenditures and the sources of funds to finance them.
B-ll
NOTES TO THE FINANCIAL STATEMENTS
- 2. During several workshops, which are open to the public, the staff and Board of Directors discuss and revise the submitted budget. A public hearing is conducted to obtain ratepayer comments. '
- 3. The budget is approved by the Board of Directors and becomes the basis for operations for the ensuing fiscal year. lll The General Manager is authorized to approve all budget transfers and gl these transfer are reported to the Board of Directors. monthly. Budget 3 amendments which increase the adopted budget are approved by the Board j of Directors. Both budget *ransfer and budget amendments were made !
during the fiscal year. l Operating expense budgets lapse at year end. Capital projects are budgeted for the project life rather than for the current fiscal year. The unexpended portion of project budgets do not lapse until the conclusion of the project. li ; Revenues and Fuel Costs: Previously the Kissimmee Utility Authority l recognized revenues when billed to customers on a cycle billing basis. 5 In September 1989, the Authority initiated the accrual of the non-fuel ; portion of base revenues for services rendered but unbilled to provide i a closer matching of revenues and expenses. The pro forma amounts below reflect Net Income as if the current method had been in effect s during the past two years. l 1989 ^ 1988 As Pro As Pro 'g l Reported Forma Reported Forma Het Income $12,075,599 $10,987,908 $8,302,021 $8,414,372 g l: Utility Plant: Property, plant and equipmen? are stated at cost when purchased or constructed. Depreciation is provided using the ' straight-line methods. The estimated useful lives of the various ; elasses of depreciable property, plant and equipment are as follows: Structures & Improvements 33 1/3 to 50 years Generation Plant & Equipment 33 1/3 to 50 years General Machinery & Equipment 10 to 40 years 1 The cost of maintenance and repairs, including. renewal of minor items of property, is charged to operating expense as incurred. The cost of replacement of depreciable property units, as distinguished from minor items, is charged to utility plant. The cost of units replaced or i retired, including cost of removal, net of any salvage value, is E charged to accumulated depreciation. 5 Nuclear Fuel: Amortization of nuclear fuel is based on cost, which is 3 1 i prorated by fuel assembly batch in accordance with the thermal energy g' I that each assembly produces. The KUA is currently paying 1 mill per ' kWh for residual future disposal costs.
s NOTES TO THE FINANCIAL STATEMENTS e L Receivables: Utility operating revenues are generally recognized on the basis of cycle billings rendered monthly. The KUA accrues rev-onues for services delivered during the fiscal year that have not been ( read by September 30. Inventories: Inventories are stated at the lower of cost or market, with cost determined using the weighted average cost basis. ( Other Assets: Unamortized bond discounts and issuance costs on r long-term debt are amortized over the life of the issue on a 1 straight-line basis. The KUA considered the effective interest method of amortising bond discounts and determined that no material differ-ence results from the continued use of the straight-line method. k Reserves Reserves representing the excess of amounts provided for certain restricted asset accounts over the liabilities payable there [ from are established by a reservation of retained earnings. The l restricted assets and liabilities are used to indicate a segregation of a portion of retained earnings equal to the net current assets that 3 are restricted for meeting various covenants as may be specified and [ defined in the various revenue bond indentures. Usage of reserves has been limited to the following items: Reserve for Bond Retirement - restricted for future servicing of the revenue bonds. Reserve for Bond Asset Replacement - restricted for meeting of various contingencies as may be so specified and defined in the indenture (frequently referred to as renewal, replacement and improvement). pesionntions: certain designations are made in the financial records during the fiscal year to identify a portion of cash and investments intended to be used for specific purposes in a future period. Desig-nations as of September 30, 1989 are as fo11cws: Designated Assets: Decommissioning (Note 11) $ iD),500 Self Insurance 1,025,025 Capital Improvemente 18,624,398 Rate Stabilization 1,480,930 Deferred Compensation Plan Assets 310,319 TOTAL $ 21,824,172
==========
Deferred Cost of Power Adjustment: Deferred cost of power adjustment represents the KUA's cost of power adjustment for revenues collected, but for which costs have not been incurred or costs that have been incurred, but for which cost of power _ adjustment revenues have not been collected. B-13
NOTES To THE FINANCIAL STATEMENTS Ii & 1 Payments to the City of Kissimmee By charter the Kissimmee Utility Authority is required to pay to the City of Kissimmee a minimum of
$6.24 per 1,000 kWh. This payment is treated as an operating and ll g
l maintenance expense in the statement of revenue, expenses and changes , in retained earnings. Reclassification: For comparability purposes certain reclassifica-tions have been made to the 1988 financial statements to conform with the 1989 financial statement presentation.
- 2. DEPOSITS AND INVESTMENTS Florida Statues, the KUA Charter and Investment Policies authorize the investment of excess funds in time deposits or savings accounts of a financial institutions approved by the State Treasurer, obligations of g the United States Government and certain instruments guaranteed by the U.S. Government. Investments may include repurchase agreements.
Revenue Bond Covenants also restrict the type and maturities of , investments in the required trust funds (See Note 8). Investments (excluding deferred compensation plan assets) are recorded g at cost, which approximates market. Doferred compensation plan assets 3 are stated at market value (see Note 7). Adjustments are made to cost for any premiums or discounts. Premiums and discounts are amortised over the life of the investments. ' Investments must be in KUA's name and placed in'a safety-deposit box in a bank or institution carrying adequate safety-deposit insurance or E represented by bank trust receipts which enumerate the various securi- W ties held. The Statutes also require depositories of public funds to provide collateral each month at least equal to 50 percent of the average daily balance of all public deposits in excess of deposit insurance. ' Any loss not covered by the pledged securities and deposit insurance would be assessed by the State Treasurer and paid by other qualified public depositories. l,i 1 At year end, the carrying amount and market value of investments (in thousands of dollars) classified by category of credit risk were as follows: CATEGORY OF RISK CARRYING MARKET l 1 2 AMOUNT VALUE I Repurchase Agreements $ $7,236 $ 7,236 $ 7,236 U.S. Gov. Securities 4,359 466 U.S. Instrumental Securities 4,350 4,825 4,350 5,026 4,519 l4 i
$ 8,709 $7,702 516,411 $16,781 E<
====== ======
3 l State Board of l Administrative Pool 33,790 33,790 l Total Investments $50,201 $50,571
====== ======
l- B-14
NOTES TO THE FINANCIAL STATEMENTS Level of credit risk assigned to the above investments include: Category 1 - Insured or registered, or securities held by the Kissimmeo Utility Authority or its agency in the l Kissimmee Utility Authority's name. Category 2 - Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the Kissimmee Utility Authority's name. The investments in the State Board of Administration Pool (represent-ing approximately 67 percent of total investments) is collaterlized in eccordance with Florida Statutes. All investments are delivered to the SBA's custody bank and held for the SDA's account according to their instructions. Repurchase agreements result entirely from a banking services agree-ment requiring overnight repurchase agreements of securities guaran-teed by the United States Government. At September 30, 1989, the balar.co sheet also includes $328,255 of accrued interest on invest-monts. At September 30, 1989, the carrying amount of KUA's deposits with financial institutions was $31,974 and the bank balance was $578,386. All bank balances are fully insured in accordance with Florida Statute 280, which established the multiple financial institution collateral pool.
- 3. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment is comprised of the following at Septem-bor 30, 1989:
1989 1988 Nuclear production $ 3,990,623 .$ 3,888,779 Steam production 16,349,742 16,001,174 Other production 42,046,778 39,295,889 Transmission plant 19,649,267 19,649,267 Distribution plant 26,835,388 24,046,888 General 5,229,236 4,487,470 SUBTOTAL $114,101,034 $107,369,467 Less accumulated depreciation (26,000,407) (22,315,329) TOTAL $ 88,100,627 $ 85,054,138
=========== ===========
L B-15 j
I NOTES TO THE FINANCIAL STATEMENTS
- 4. CONSTRUCTION PROJECT INTEREST COST ;
In accordance with Statement of Financial Accounting Standards No. 62,
" Capitalization of Interest Cost in Situations Involving certain :
Tax-Exempt Borrowings and Certain Gifts and Grants," the KUA has ' recorded interest cost on long-term debt issued to finance specific capital projects as construction in progress. There was no interest capitalized in either 1988 or 1989.
- 5. PARTICIPATION AND POWER SUPPLY AGREEMENTS Kissimmee Utility Authority is party to the following participation j and power supply agreements at September 30, 1989: l[
A. stanton Energy Center Unit No. 1 (SEC 1): In 1984, the KUA ontered into a Participation Agreement with Orlando Utilities Commis- , sion (OUC) to acquire a 4.8193% (20MW) undivided ownership interest in ! ! SEC 1 and to participate in the use of related common and external facilities. The capacity and energy of the KUA's ownership interest
- in SEC 1 will be transmitted through OUC's transmission facilities to i the KUA's transmission facilities. SEC 1 is part of the Stanton Energy Center, which involved the developnsnt of an approximately 3,200 acre plant site located approximately 20 miles northeast of the City of Kissimmee. In addition to SEC 1, the Stanton Energy Center is capable of accommodating three more units with a total capacity at the l4 Stanton Energy Center of approximately 2000 MW. Each participant in a the project financed their share of the cost independently and no liability exists for the debt service required by the other partici- g pants. KUA's cost was financed by the proceeds of'the 1984 Bonds and- g' revenues of the system. KUA's benefit in the Agreement is the added availability of capacity and energy of the facilities through its participation in future energy purenased and it does not otherwise maintain an ongoing financial interest or responsibility for the project.
l ' Stanton Energy Center began commercic1 operations on July 1, 1987. The KUA does not exercise significant influence or control over operating or financial policies of OUC. B. Crystal River Unit No. 3 (CR3): In 1975, the KUA entered into a - Participation Agreement with Florida Power Corporation (FPC)- to purchase a .6754% undivided interest in their 806 net MW nuclear powered electric generating plant designated Crystal River Unit No. 3. The KUA is billed for its share' of operating and capital costs. l Capital costs are included in Property, Plant and Equipment and g i operating costs are included as power generation expenses. KUA's 3 benefit in the Agreement is the added availability of capacity and energy of the facilities through its participation in future energy purchases and it does not otherwise maintain an ongoing financial a interest or responsibility for the project. g B-16
NOTES TO THE FINANCIAL STATEMENTS The KUA does not exercise significant influence or control over the operating or financial policios of FPC. C. Indian River Combustion Turbine: In 1988, the KUA entered into a Participation Agreement with Orlando Utilities Commission (OUC) to acquire a 12.2% (11.7 MW) undivided ownership interest in the Indian River Combustion Turbine and participate in the use of related common and external facilities. Each participant in the project financed their share of the cost independently and no liability exists for the debt service required by the other participants. The KUA does not exerciso significant influence or control over the operating or financial policies of OUC. D. Florida Municipal Power Agency (FMPA): In 1981, the KUA entered into a Power Supply Acquisition Agreement with the FMPA. KUA is to receive approximately 7 MW of power from the St. Lucie nuclear power plant. Costs associated with this agreement are included in purchased power expensos. The KUA does nc1 exerciso significant influence or control over the operating or financial policios of FMPA. It has boon determined that none of the participation agreements to which KUA is a party meet the criteria of a joint venture as specified by the National Council on Governmental Accounting Statement No. 7. The KUA lacks operational control over the SEC1, CR3, Indian River and FMPA projects. No separate governing authority oxists for any of the projects. According to the participation agreements, each participant must provido its own financing and each participant enare of expenses for operations of the plants arc included in the corresponding operating expenses of its own income statement. The amounts of utility plant in service do not include the cost of common and external facilitics for which participants pay user charges to the operating entity. Accumu-lated depreciation on utility plant in service is determined by each participant based on their depreciation methods and rates relating to their share of each plant. Following is a summary of KUA's propor-tionate share of each jointly owned plant at September 30, 1989: INDIAN SEC 1 CR3 RIVER Utility Plant in Service $16,349,742 $ 3,990,623 $ 2,696,424 Accumulated depreciation (986,503) (1,321,179) (80,893)
$15,363,239 $ 2,669,444 $ 2,615,531
========== ========= =========
B-17
I NOTES TO THE FINANCIAL STATEMENTS
- 6. PENSIONS The KUA employees participato in a multiple-employer cost sharing Retirement Plan for both employees of the City of Kissimmee and Kissimmee Utility Authority (The Plan). The Plan was established in +
1968 and amended and restated in 1975 to cover substantially all full-time employees, except City police officers and firefighters. Annual costs of the pension plan are actuarially computed and include amortization of past service costs over a 30 to 40 year period begin-ning January 1, 1974. An actuarial study was conducted at January 1, 1989 and 1988. The table below shows relevant data for the Plan as a whole and for KUA's portion where this was available:
~
Total Plant Unfunded accrued liability $ 1,391,070 $ 1,303,844 3 Value of assets 9,574,922 8,321,528 E-Vested benefits 5,345,639 4,550,414 Nonvested benefits 566,415 541,427 Normal Cost 568,171 518,290 Amortization of Unfunded liability 116,983 108,620 Interest Adjustment 51,387 38,351 Actuarial funding requirement 736,541 503,451 Administrative costs 45,943 75,153 Total Employer contribution 782,484 578,604
% of % of Total Total KUA'S Portion: Plan Plan Vested benofits 2,171,391 40.6 1,848,419 40.6 Nonvested benefits 275,826 48.7 235,070 43.4 :
Normal Cost 260,466 231,988 Amortication of Unfunded liability 53,087 48,529 Interest Adjustment 23,517 17,,232 Actuarial funding requirement 337,070 45.8 246,989 45.. ,
% of % of Covered Covered Payroll Payroll i Covered Payroll Normal Cost Amortication of Unfunded liability 2,972,404 260,466 53,087 8.8 1.8 2,538,514 231,998 48,529 9.1 1.9 l ,
i Employer Contributions 337,070 11.3 246,989 9.7 . Employee Contributions 0 - 25,385 1.0 - I
,.1, I
/ NOTES TO THE FINANCIAL STAIEMENTS s The Entry-Age Normal-Level Percentage of Pay actuarial cost method was
- r. utilized in the January 1,1989 and 1988 valuations. The significant L assumptions for this Plan aret
- 1. Life expectancy is calculated using the GA-1951 Male Mortality projected to 1965 by Scale C with a-five-year set-back for females;
(- 2. an interest return of 7. 5% compounded annually;
- 3. a salary increase of 6% per year.
As of January 1, 1989, the plan included 335 employees at a total annual basic compensation of $ 6 ,588,815 . of these numbers, KUA employees were 131 at a total annual basic compensation of $2,972,404. [ Membership in the Plan is comprised of the following: Retirees receiving benefits 24 ( Beneficiaries receiving benefits 22 Vested terminated employees 15 Active employees: Fully vested 47 Partially vested 127 Nonvested 100 335 ( === Normal retirement eligibility is defined as attainment of age 65 and [ completion of 10 years of credited service. Eligibility for early re-t tirement is attained at age 55 and completion of 15 years of credited service. The Plan also provides for disability retirement and a death r benefit. The prior year employee contribution rate was 1% (2% if mem- [ ber of bargaining unit) of basic annual compensation. A plan amendment in 1986 provides that the employee contribution rate be reduced 1% each year. The shortfall is handled through an increase in normal ( cost and through the establishment of a plan amendment base to be amortized over 30 years. KUA's contribution is calculated by the actuary based on membership. The administrative cost of the Plan is ( allocated proportionately between the City and- KUA and paid
! separately.
As of January 1, 1989, the pension benefit obligation was calculated as follows: Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits: $ 1,875,496 Current employees: Accumulated employee contributions including allocated investment income 973,738 Employer financed - vested 2,496,405 Employer financed - nonvested 3,023,100 Total pension benefit obligation $ 8,368,739 Less actuarial value of assets 9,574,922 Unfunded (assets in excess of) pension benefit obligation $(1,206,183) _ ==== _=== B-19
t NOTES TO THE FINANCIAL STATEMENTS l The actuarial assumptions used to compute contribution requirements were the same as those used to compute the pension benefit obligation. l The pension benefit obligation is a standardized disclosure measure of the present value of pension benefits, adjusted for the offects of l projected salary increases and step-rate benefits estimated to be , payable in the future as a result of employee service to date. The l rneasure , which is the actuarial present value of credited . projected ' benefits, is intended to help users assess the system's funding status on a going-concern basis, assess progress made in accumulating suffi-cient assets to pay benefits when due, and make comparisons among PERS i and employers.
- 7. DEFERRED COMPENSATION PLAN i The KUA offers its employees a deferred compensation plan created in accordance with Internal Pevenue code Section 457. The plan is ,
administered by the International City Managers Association (ICMA). 3 The plan, available to all KUA employees permits them to defer a 3 portion of their salary until future years. The deferred compensation ' available to employees until termination or unforeseeable is not emergency (including death, retirement and disability) . The Internal Revenue Code section 457 requires that all amounts of l ' compensation deferred, all property and rights purchased, and all 3 income earned are (until paid or made available to employees or their 5 beneficiaries) solely the property and rights of the KUA, subject only
-to the claims of the KUA's general creditors. Participants' rights a under the plans are equal to those of general creditors of the KUA in g4 an amount equal ts the f air market value of the deferred account for each participant. Def erred Compensation accounts are stated at market value.
The ICMA is responsible for investment of funds, distribution of benefits and reporting to participants. The KUA believes that it is E unlikely that it will use the assets to satisfy the claims of general 5 creditors in the future.
- 8. REVENUE BONDS OUTSTANDING The Rovenue Bond resolutions provide for:
EstablisNnent and maintenance of various funds: A. (1) Revenue Fund records all operating revenues and expenses of the systems (2) Sinking Fund records principal and interest requirements; E' (3) Bond Amorti=ation Fund records funds held for the retirement 5 of term bonds; (4) Reserve Fund records funds held for the maximum annual debt service requirement; . l l a-20 l
s / N NOTES TO THE FINANCIAL STATEMENTS s (5) Renewal, Replacement and Improvement Fund is to be used only for making improvements, extensions and replacements to the ~ system, and y (6) Construction Fund records the cost of major additions to the system financed by revenue bonds. B. Restrictions on the use of cash from operations in order of priority ( (1) Deposits are made to the Revenue Fund to meet current operations according to the Budgets (2) Deposits to the Sinking Fund Account are required on or before the 25th day of each month equal to one-sixth (1/6) of the interest coming due on the next semi-annual interest payment date and one-twelfth (1/12) of the principal coming due on the next principal payment date; (3) Deposits to the Bond Amortization Fund are requited on or before the 25th of each month equal to one-sixth (1/6) of the amortization installment coming due on the next semi-annual payment dates (4) Deposits to the Reserve Fund are to be made when required to r maintain the Fund at the reserve requirements (maximum
} annual debt service); and (5) Deposits to the Renewal, Replacement and Improvement Fund are required each month in an amount equal to one twelfth
( (1/12) of the adopted budget for that fund. The total annual deposit may not be less than 5% of the gross. revenues for the preceding fiscal. year after deducting 100% of the fuel expense and the energy component of purchased power expenses incurred in such preceding fiscal year. However, no such monthly deposit shall be required when the amount in such fund shall at least equal $1,500,000. C. Early redemption: The bond ordinance provides for early redemption of outstanding bonds, except original issue discount bonds, at call rates varying from 100% to 102% of the instruments' face value, dependent upon the call date. Original issue discount bonds may be redeemed early at call rates of 80% to :100% of the f ace value, depen-dent upon the call date. D. Investment restrictions: (1) Funds of the Sinking Fund, Bond Amortization Fund, Reserve-Fund and Renewal, Replacement and Improvement Fund are required to be continuously secured in the same manner as nunicipal deposits of funds are. required to be secured by the Laws of the State of Floridas and (2) Monies on deposit in the Sinking Fund and the Bond Amortization Fund shall be invested only in direct obligatica of, or obli-gations the principal of and interest on which are guaranteed by the United States of America and which do not permit redemption prior to maturity at the option of the Authority. Monies on deposit in the Revenuo Fund, Reserve Fund and B-21 j
I: NOTES TO THE FINANCIAL STATEMENTS Renewal, Replacement and Improvement Fund may be invested g I as d9 scribed above as well as in obligations rating an "A" or g. better from Moody's Investors Service, Inc., bank time deposits ! represented by certificates of deposit and bankers acceptances, repurchase agreements, commercial paper which has the highest lt investment grade rating and shares of investment companies a which invest principally in United States government securities. ; The refunding and revenue bonds consist of the following serial and ! term bonds: ! AMOUNT AMOUNT i FINAL ORIGINAL OUTSTANDING OUTSTANDING i DESCRIPTION MATURITY AMOUNT 9/30/89 9/30/88 - Refunding Revenue [ Bonds-series 1982A l 6.75% - 7.75% 10/01/92 $71,500,000 $ 4,280,000 $ 4,945,000 e ', Refunding Revenue g[ Bonds-Series 1985 6.50% - 8.50% 4/1;10/1 10/01/17 36,875,000 36,530,000 36,875,000 li.. Electric Revenue l Bonds-Series 1987 5 3 3.75% - 6.80% 4/1;10/1 10/01/12 66,020,000 65,090,000 65,445,000
- 9. CHANGES IN LONG-TERM DEBT The following is a summary of bond transactions:
9 1989 1988 3 Bonds Payable 3 ' Beginning of Year $ 107,265,000 $ 108,175,000 New Bonds Issued - - Bonds Retired (1,365,000) (910,000) > BONDS PAYABLE AT END OF YEAR $ 105,900,000 $ 107,265,000 .
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s a NOTES TO THE FINANCIAL STATEMENTS The annual long-term debt requirements are as follows: YEAR ENDING YEAR ENDING l SEPTEMBER 30 1989 SEPTEMBER 30 1988 1990 $ 8,671,481 1989 $ 8,673,568 l 1991 1992 8,999,177 1990 8,671,481 8,996,168 1991 8,999,179 1993 9,003,229 1992 8,996,169 1994 8,991,371 1993 9,003,231 1995-1999 44,784,507 1994-1998 44,927,508 2000-2004 43,619,840 1999-2003 43,775,099 2005-2009 43,242,485 2004-2008 43,256,110 2010-2014 32,133,725 2209-2013 37,784,490 2015-2017 9,073,075 2014-2017 12,101,800 4 TOTAL $217,515,058 $226,188,635 LESS: Amt. represent-ing interest (111,615,058) (118,923,635) TOTAL AT PRESENT VALUE $105,900,000 $107,265,000
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- 10. REFUNDED BONDS The KUA presently has outstanding serial bonds, which were refunded through the full cash defeasance method on January 4, 1978 and through the not cash defeasance method on February 25, 1982, January 25, 1983, December 31, 1985 and April 1, 1987 as follows:
AMOUNT OUTSTANDING _ l BOND ISSUES 1989 1988 1963 $ 1,110,000 $ 1,310,000 1967 905,000 980,000
- 1971 850,000 850,000 1971-A 420,000 455,000 1973 3,085,000 3,140,000 1975 3,225,000 3,300,000 ELECTRIC REVENUE l BONDS J 1977 Series A $ 17,965,000 $ 18,185,000 1979-A 2,425,000 2,470,000 1982 47,190,000 47,500,000 1982-A 70,185,000 70,850,000 1984 _28,210,000 28,400,000
$175',570,000 $177,440,000
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I; I NOTES TO THE FINANCIAL STATEMENTS Since governmental obligations are held in escrow for the payment of 1 principal and interest on these bonds, they are not liabilities to the i l KUA.
- 11. COMMITMENTS AND CONTINGENT LIABILITIES:
The KUA owns a portion of Florida Power Corporation's nuclear power plant at Crystal River, Florida. This plant is scheduled to be a deconnissioned beginning in the year 2015 and ending 2022. The KUA g+ will be liable for approximately $668,000 in decommissioning costs in 1989 dollars. As of September 30, 1989 and 1988, $383,500 and
$283,500 respectively was escrowed. An additional $100,000 has been budgeted to be escrowed during FY 1989/90.
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s ,e s ? KISSI.it.\ LEE UTILITY AUTHORITY h KISSIMMEE, FLORIDA LISTING OF OFFICIALS AS OF SEPTEMBER 30,1989 ( BOARD OF DIRECTORS Richard L. Hord Chairman [ George A. Gant, M.D. - Vice Chairman Bob Bobroff- Secretary ( Harry Lowenstein Asst. Secretary ( Arnold Jones Director Bruce R. VanMeter - Ex Officio / Mayor GENERAL \l ANAGER James C, Welsh, P.E. ATTORNEY Brinson, Smith & Smith, P.A. DIRECTORS Christine Beck Director of Customer Relations i Kenneth W. Davis Director of Planning { Joseph Hostetler Director of Finance Kenneth L. Lackey Director of Distribution A.K. Sharma Director of Power Supply James Tillman Director of Materials Mgmt. Neville C. Turner Director of Personnel and Risk Management i 1 vi s
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i KISSIMMEE UTILITY AUTHORITY l COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30,1989 AND 1987 - TABLE OF CONTENTS
' INTRODUCTORY SECTION TITLEPAGE......................................................................................................... iii PR I N Cl P A L OFFI CI A LS . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Vi .. . .. . . . . . . . . . . . . . . . . . . . . .
1 TA B LE O F CO NTE NTS . . . . . .. . . .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . .vili . . . . . . . . . . . .. . . . . . .. . . . . . LETTE R O F TR A N S MITTA L. . . . . . . . .. . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . .A1 . . . .. . . . .. . . . . . . . . . . . . ... O RG A N I Z A T!O M L CH A RT. .. .. . .. ... . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . .'A . . 9. . . . . . . . . . . . .. . . .. . . . . i FINANCIAL SECTION 4 B3 A U D ITO R' S RE P O RT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 GENERAL PURPOS E FIN ANCI AL STATEMENTS........................................... ! B al a n c e S h e e t. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B-6 . . . . . . . . . . . . . . . . . . !. . . . . . Statement of Revenues, Expenses and Changes in Retained Earnings......... B-8 Statement of Changes in Fmancial Position................................................. B9 i No te s to Fin ancial S tate me n t s.. .... . . ..... . . . ..... . . . ..... . . . ... . . .. .. . .. ..... ... -. B ...10.. ....... . ... -l SUPPLEMENTAL INFORMATION SECTION i Schedule of Revenues, Expenses and Changes in Retained Earnings / i B u d g e t v s A c r u a1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .C ...3 ..................... Schedule of Debt Service Requirements to Maturity - All Series................ C-4 Schedule of Bonded Debt and Interest-Refunding Revenue Bonds S e ri e s 1 9 8 2 A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .C-5 ....................... , Schedule of Bonded Debt and Interest-Refunding Revenue Bonds Series 1985............................................................................................... C-6 : Schedule of Bonded Debt and Intemst-Refunding Revenue Bonds Series 1987............................................................................................... l C-7 j STATISTICAL SECTION 4 1 Table 1 - Operating Revenues by Source / Operating Expenses by Department................................................................................. D-4 . l Table 2 - Climate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D6 !' Table 3 - Pop ulation Forecast .. .. . .. . .. . . . . . . . .. . . . . . .... .. . . . . . .. . . . . ....... .. . .. . . . . . . ... ... . . .. D-7 Table 4 - Ten Largest Non Government Utility Customers............. ........... D-8 i Table 5 -' Com parative Cost of Living .. ................................ ............. .... . D9 Table 6 - Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D-10 Table 7 - Customer, Sales and Load Forecast ............. . .. . .... ................. . D.11 1 Table 8 - Active Service S tatistics ................................ . .... ................ . D-12 Table 9 - Population and Em ployment Growth.......... .. .. ............ ......... .D.13 Table 10 - Oscec la Cou nty G rowth........ ..... . . ..... ..... . ..... .................. ..... D-14 i e v111
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raia.ece m P 0 So"j'g'4Tg'60'"ab""*4 AUTHORITY January 12, 1990 Mr. James C. Welsh GeneralLManager Kissimmec Utility-. Authority [1
Dear Mr. Welsh:
The comprehensive Annual Financial Report,of;the 1Kissimmee Utility Authority (KUA), for the Fiscal Year ended September 30, 1989, is submitted' herewith pursuant to Section 10 ~of the KUA Charter, Florida Statutes Chapter. 166.241(1) and Chapter 10.550 of the Rules of.the Auditor = General of the-State of Florida. Responsibility for both the accuracy of r the data,.and the completeness, and fairness"of_the-presen- 3 l- tation, including all disclosures,. rests.with the KUA. This Comprehensive Annual Financial Report was prepared by the staff of the Finance Department of-the KUA. We believe- the: !' data, as presented, is accurate in all material- respects; that it is presented in a manner designed to fairly set forth the financial position and results- of. operations of. ll the KUA; that all disclosures necessary -to _ enable- the ! readers to gain the -maximum understanding of the- KUA's
=l financial activity have been included.- 1 h' As required by Section 10 of the KUA -Charter and Florida <
Statutes Chapter 11.45(3)(a)3, -the Comprehensive Annual : j Financial Report has been audited by a firm of -independent j [ certified public accountants and their unqualified opinion is included as part of this report. i THE REPORTING ENTITY AND ITS SERVICES; ; In 1984, the City Commission of the City of >Kissimmee established a Utility Study Committee. The report of. this committee recommended establishing a separate authority. In February 1985, the City JCommission adopted ordinance: 41285: , establishing the KUA, subject to. approval by a majority of a qualified voters. In March 1985, the voters of Kissimmee: - did approve establishing the KUA effective October'1, 1985. i The KUA Charter (Ordinance #1285) states that the KUA shall ! be responsible for the development, production, purchase and j distribution of all electricity and such 'other utility _ l services as may be designated by resolution by the City , Commission. The KUA currently provides electric services in 5
.an 85 square mile service territory in the Kissimmee area.
;All of the service territory is within Osceola County. )
g l Serving the Kissimmee Area Since 1901 LU A-1
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'f This report doesinot-includelthe financial activities-of the City of Kissimmee. Reference'should be made to their report publishod: separately.
ACCOUNTING SYSTEM AND BUDGETARY CONTROL ~j The accounting rr 3rds for the KUA are maintained on a full- E' accrual -basis. In. developing- and modifying the KUA's N accounting system, consideration is'given to.the adequacy of- . internal accounting controls. Internal accounting controlsL a are designed- to provide reasonable, but not absolute, 5 assurance regarding:-
- 1. The; safeguarding of assets against loss from '
unauthorized use or disposition; and'
- 2. The' reliability of financial records for preparing financial statements and; maintaining accountability- 3, for assets. E'!
E I The concept of reasonable assurance recognizesithat:
- 1. The costs of a control should-not exceed the benefits likely to be derived; and. -
- 2. The evaluation of costs and-benefits requires .
estimates and judgements by management. All internal control evaluations occur - within the above- g framework. We believe that the; KUA's internal accounting gl . controls-adequately' safeguard assets and provide- reasonable assurance of: proper recording of financial transactions.- ,
;J Annual Budgets: The KUA follows these: procedures in estab- -
lishing the annual budget:
- 1. The General Manager submits to~the Board of Directors a proposed operating budget for the ensuing fiscal year. The operating budget includes g proposed expenditures and the sources of funds to 3, finance them.
- 2. During several workshops, which are open to the ,
public, the staff and Board of Directors discuss and revise the submitted budget. A public hearing i.s 1 conducted to obtain ratepayer comments. ; l 3. The budget is approved by the Board of Directors and- l l becomes the basis for operations for the ensuing L fiscal year, i l The KUA is required by charter to adopt an annual budget. l Budgetary control is provided by monthly revenue and expense reports. These interim reports are provided to the Board of-Directors for review in advance of a formal verbal presen-tation of financial activity at each monthly Board meeting. I A-2
s J CASH MANAGEMENT - KUA has a banking service agreement with a local. depository bank that provides that all funds in excess of a compensat-r ing balance will carn interest through overnight repurchase f agreements. In addition, KUA' participates in the State of Florida State Board of Administration's program for pooled investment of local government surplus funds. During 1989, investments were maintained almost entirely with these arrangements although the portfolio still includes other unmatured instruments purchased in prior years. The cash management program involves a theory of keeping principal 4 and earnings free from risk, maintaining reasonable liquidi-ty to meet maturing obligations and maximizing return I through the use of competitive rate comparisons from various investments sources. In 1989 the. composite interest yield on investments was 8.6%. DEBT MANAGEMENT The Kissimmee Utility Authority attempts to minimize exter-nal financing needs through internal generation of capital funds. The purpose of this financial policy:is to establish. and maintain a debt-to-equity ratio and a coverage ratio I that would minimize the impact of future debt issues for i generating plant. Forecasts .for capital expenditures from ! Fiscal Year 1990-1994 indicate approximately ;$80-$100 -; I million and the Authority is planning to pay substantially ' all of these costs from internally generated funds ~. .In i 1987, a major refunding issue was accomplished and .for - j several years, interest earned on; existing debt- service - reserve accounts has been designated for either retiring debt early or reducing the amount of future debt issues. 1 I The principal of, premium if any, and interest on all 3 i outstanding Bonds are payable solely from the Not Revenues derived by the Authority from the operation of'the System. i I These obligations do not constitute liens upon the System or i on any other property of the Authority or the City, but are a lien only on the Net Revenues and special funds created by-the Bond Resolution and in the manner provided therein. RATES { In' December 1974, the City Commission adopted an ordinance l permitting the City (and now the Authority) to pass on directly to the consumer incremental fuel cost increases on 1 I a monthly basis. This Cost of Power Adjustment ("COPA") has eliminated the regulatory delay that has been a problem for many other utilities. Additionally, in June 1983, the City i commission modified the COPA ordinance to allow the system ' to project the COPA billed to a levelized rate for the Fiscal Year and the negative or positive COPA account I .-3 1
f balance is used in calculating- the projected COpA rate for the next Fiscal Year. , In addition to the COpA, the City has from time to_ time k raised base rates as necessary to. insure proper operation of f
-the System. Base Rate increases of 7%, 6.2% and 2%. were m?
approved-in Fiscal Years 1983, 1984, and 1985 respectively. The Base Rate did not change in 1986. In Fiscal Year 1987
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an effective decrease in the base rates: of 1% was implement- - ed, while in Fiscal Year 1988 a 4.1%-decrease was approved l, by the Authority's_ Board of Directors affecting.the commer- e cial classes only. The Base Rate did not change in 1989. . In 1985, the Authority implemented a program of rate s tabi- ! lization in an effort to prevent uneven increases in. total electric charges to the customers. The Authority, addition-ally, maintains a computerized cost of service study which 1s updated each year with: l
- a. past years audited figures-to. survey the. adequacy- E of each rate and rate structure; 5 b, the current years' budgeted amounts to predict the i need for a. rate change.
i Customer rates and rate-structures are intended to follow guidelines of the Florida-public Service Commission and, as' . such, should be " fair, just and reasonable". It is also intended that they be competitive with neighboring utilities - and equitable between rate classes. ' MANAGEMENT SERVICES CONTRACT Ia The Kissimmee Utility Authority handled a' number.of adminis- g= trative functions through Management-Services Contracts with the City of Kissimmee. g The capability.for handling all these functions internally was developed over a transition 1 period which ended on November 30, 1989. Throughout the transition it was the policy to closely coordinate with the ! City so as to minimize disturbance to the existing depart- ' ments. The intention behind assuming these functions 3 internally, was both to relieve the City of the -additional 5 workload and to enable the Authority to have direct' manage-rial control over these activities. , 1 FINANCIAL STATEMENT FORMAT The report is arranged in the following sections: Section 1: ' Introductory'Section - Contains the L Letter of Transmittal and other such g-l material as may be useful in g L understanding the reporting entity. Section II: Financial Section - This scction of the report contains the auditors' report and A-4
m J . financial statements which present fairly I the financial position and results of operations-for the fiscal year. W 5ection III: Supplemental Information - This_section { is presented for the purpose of addition-al analysis of debt issues and to present budgetary comparisons. They are not necessary-to make a fair presentation in conformity with Generally Accepted i I Accounting Principles. section IV: 5tatistical section - This section presents-de: ailed historical information I which will be beneficial to the reader in understanding the KUA's historic growth and its future-growth prospects. FINANCIAL CONDITION Comparative data for the last three fiscal years is.present - od.in the following tables: 3 1989 1988 1987 Utility Plant - Not $96,384,224 $87,885,888 $86,677',188 l Cash & Investments 1 1 (Unrestricted) 31,927,353 27,246,339 19,455,079 ; Current Ratio 4.13 to 1 3.71 to 1 3.95 to 1 ! Operating Income 14,505,055- 13,016,168 14,564,317 l Income before cumulative effect of a change in j Accounting Principle 10,987,908 8,302,021 10,451,413 i Income available for l debt service 25,913,099 22,770,270 22,466,832 1 Debt Service Require- . 1 ment 8,673,567 ~8,570,081 7,435,601 ; l Debt Service Coverage 2.99x 2.66x .3.02x j continued expansion of the generation, transmission and ! i distribution system has caused significant growth _ in the values of the utility plant in the years presented. Desig-i nated cash and investments show a slight increase attribut-able to the current policy to internally finance capital I improvements. In future periods, large outlays for capital expenditures can-be financed'from these funds. j Operating income was higher in 1989 versus 1988 due to customer growth.-Income available for.debtEservice increased-14% while the debt service requirement increased 1%. .This } resulted in an increase of our debt service coverage by 12%. !
-Our current high customer growth rate and projected increase in metered sales shou 3d result in an increase in operating j income in Fiscal Year 1990.
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I ' RISK MANAGEMENT During the current Fiscal year the Kissimmee Utility 'B Authority-has continued to accumulate resources in the Self 5 Insurance Fund. The amount in the Fund at September- 30, 1988 was $1,025,025. Management is currently reviewing the Insurance Progran to determine the appropriate amount of - risk that can be assumed by the Kissimmee Utility Authority-.- ' In addition, various risk control' techniques- including-employee accident prevention training- have been continued B ', during the year to minimize accident related losses. B FUTURE PROSPECTS Demand for electric power from the system has significantly increased in recent years and is--projected to continue .to: increase,_though at a decreasing rate of- growth. In 're-sponse to_ this growth the Authority has _ initiated its internal financing policy. The accumulation of-cash in_ tho' Capital Improvement-Fund will-be-used to. offset part-of the E financing needs for the new plant- capacity. The ' KU A . is- B carefully watching the growth of the surrounding community. and-is methodically building its staff'and system resources a-to e 1svel adequate to serve the: area for many years to- g came. .; INDEPENDENT AUDIT-State Statutes require an annual, audit' by independent N certified public accountants. The accounting firm .of Coopers and Lybrand was selected by KUA'sJauditor selection ~ 3] _51 committee. The auditor's report on the- general purpose financial statements is included in the financial section of this report. REPORTING ACHIEVEMENTS =j The Government Finance Officers Association ofLthe United Li States and Canada (GFOA) presents a Certificate of Achieve- j ment for Excellence in Financial Reporting to_ governmental units whose comprehensive annual financial reports (CAFR's)- B1 3: are judged to substantially conform' to program-- standards. ! In order to be awarded this certificate, a governmental unit a, must publish an easily readable: and efficiently organized 'g 1 CAFR, whose contents satisfy both-generally accepted ac-counting principles and applicable legal requirements. The i Certificate is valid for a period of one year only. The.KUA , i Comprehensive Annual Financial Report for the fiscal year ended September 30, 1988 received this Certificate. We , believe the KUA's. current report conforms to GFOA's program standards and intend to submit KUA's Comprehensive Annual g'l g i Financial Report for the fiscal year ended September 30, 1989 to GFOA to determine its eligibility. j A-6 .
ACKNOWLEDGEMENTS The preparation of the Comprehensive Annual Financial Report on a timely basis was made possible by the dedicated service of'the entire staff of the Finance Department. Each member of the Department has my sincere appreciation for the contributions made in.the preparation of this report. Respectfully submitted, } c< '. ,) .- / 6,
- Joseph Hostotler, Finance Director-d 3
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g Certificate. of . l' Achievement g for Excellence j in Financial I Reporting i Presented to l Kissimmee Utility Authority, Florida. Ijl For its Comprehensive ' Annual' Financial Report I. for the Fiscal Year Ended - lj September 30,1988 A Certificate of Achievement for Excellence in Financial E-Reporting is presented by the Govemment Finance Officers .
'5 Association M he United States and Canada to ;
govemment u6tts and public employee retirement g.j systems whose comprehensive annual financial reports (CAFR's) achieve the highest g1 standards in govemment accounting and financial reporting. l camounen i 4 President gq I h/&e m_ oi,_ g; I Il
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KIS$1MMEE V7ILITY AUTHORITY DRGANIZATIDNAL CHART TY 1989 90 BOARD OF DIRECT 0its i Attorney
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l' GENERAL MANAGER (Dept-17) I Internal -- Assistant To The Auditor, General Manager ' 4 i Administrative - , Secretary i 1 l Director of Director of-Power Supply Distribution Director of Planning & Director of j Customer j (Dept 11 & 12) Operations Engineering Relations 4 (Dept 13) (Dept 14). (Dept 15) Director of Director of Director of Finance Personnet & Materials l (Dept 16) Risk Management Marmgement ! (Dept 18) (Dept 19) i A-9
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s o SEBRING UTILITIES COMMISSION l Sebring, Florida i September 30,1989 and 1988 Certified Public Accountants (Wicks,Biown, Williams &Ca
I I i I 1 I I I I SEBRING UTILITIES 00ftilSSION SEBRING, FLORIDA S m - e 30. ,ee ,eee a I ' i j ; I l
- j W e SEBRING UTILITIES CottilSSION L TABLE OF CONTENTS SEP1DBER 30,1989 - F j l 4 EAge -. 1 p Auditors' Report i L . . Financial Statements: , / Balance Sheets- , 1 ! (: Statements of Retained Earnings - 2 Statements of Income 3 - Statements of Cash Flow 4 ' Notes to Financial' Statements 5 $ (-_ Supplementary Schedules of .incane: .i [ Electric System 13 I Water System 14 Statistical Data: Pension Plan Supplementary Information 15 . i L F 4
Certifl@d Public Accountants I (Mcks,Biown, Williams &Co). - 111 Park Avenue East. Post Office Box 1136, Lake Placid, Flonda 338521136 * (013) 465 2835 Charles F. Wicks, C.P.A., (Retired) Avon Park Office . J. Richard Brown, C.P.A.. P.A. (813)453 7525 Frank L. Wilhams, C.P.A., P.A. . I-
- Robert P. Marchewka, C.P.A., P.A. sebnno Office W. Bruce Stratton, C.P.A., P.A.- (B13) 3821157 Oe I
Cheryl M. Wilhama, C.P.A., P.A. e ce Dale E. Merrm, C.P.A. Robert B. Knapp, C.P.A. Jndeperld ent_ Auditors'. Repott I Sebring Utilities Conmission Sebring. Florida We have audited the balance sheets of Sebring Utilities Ccnmission as of Septeter 30, 1989 and 1988, and the related stat ments of retained earnings, I inccmo, and cash flows for the years then ended. These financial statements are ' the responsibility of the Ccnmission's management. Our responsibility is to , express an opinion on these financial statements based on our audit. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material-misstatement. An audit includes examining, on a test basis, evidence supporting the annunts and disclosures in the financial statments. An audit also includes . assessing the accounting principles used and significant estimates made by I manag ment, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. in our opinion, the financial statements referred to above present fairly, I in all material respects, the financial position of the Sebring Utilities Ccnmission as of September 30, 1989 and 1988 and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary schedules of inecme for -I the electric and water systems are presented for the purposes of additional-analysis and are not a required part of the basic financial statements. Such information in these schedules has been subjected to the auditing procedures I applied in the audits of the basic financial fairly stated in all material respects statements taken as a whole. statements and, in our opinion, is-in relation to the basic financial-I We did not audit the statistical data presented for pension plan supplementary information; therefore, we express no opinion thereon. (A)hAs,t$ w ~L b,).NI <>. w 9/ Q Wicks, Brown, Williams & Co. Nov eber 3, 1989 I MEMBERS Amortcon Institute of C P.A.'s Flortda Institute of C.P.A.'s
i SEBRING UTILITIES 00ftilSSION i BALANCE SHEETS SEPTEMBER 30, 1989 AND 1988 ! __.l AS L _. 198.6. .__ . l ASSETS Ii PROPERTY, PLANT AND EQUIPMENT, at cost: ; Property, plant and equipment in service $ 97,455,406 $ 93,938,840 Less: Accmulated depreciation 27,,321,j23 24 d&Q,RlS 3: Net property, plant and equipment l' in' service- 70,125,583' 69,788,022 Construction werk in progress- 776,344- 1,860,127 Nuclear fuel, at amortized cost 457 183- ._.159.445. Total property, plant and equipment 71.359.913 72.007.594 RESTRICTED ASSETS: ll Bond service fund- 4,119,430. 3,706,118- W! Sinking fund reserve E161J6D 10.681.360 Total restricted assets j4.800.71Q . J4.387.478 m; CURRENT ASSETS: 5 Cash and tenporary investments: . - Operation and maintenance fund 2,253,955 2,431,280 ! Residual working capital account- 3,217,473 3,202,415 .l Accounts receivable, net of allowance i for doubtful accounts of $15,273 . ll for-1989 and $33,175 for 1988 2,481,240 2,151,900 Wt inventories of fuel and naterials 1,033,482 932,181~ Prepaid expenses 147.822 142.933' a: Tctal current assets 9.133.972 ),8J0.709 g; DEFERRED CHARGES: , j Unamortized bond expense _1.,J_6.QJ67 - _2,074.143 [ Total deferred charges _ 1.960.367 2.074.143- : TOTAL ASSETS $ 97,255,042 $ 97,329,924 l L L It
i 12B 9__.. _ _._19.B.lL._ : LIABILITIES AND CAPITALIZATION CAplTAllZATION: Long-term debt .
- g Revenue bonds payable $128,582,719 ~ $126,103,050 .
g Custcmer deposits 1,050,948 853,302 > Notes payable- _ 6LR$_4 '_RLQ22 Total long-term debt _129.703.631 12.7,049.374 j Equity , Contributed by City of Sebring 712,647 712,647 I, Retained earnings (deficit) Total equity , _
<42,761JlSL (4LO4_3 432)
()$ 63.7.591)
<3LS14.,14_A>
Contributions in aid of construction J,4.L4L912 ._.3.815.091 - } Total capitalization AL10.12L8 SadBRJ29 ; LIABILITIES PAYABLE FROM RESTRICTED ASSETS: Bond principal and accrued interest _A1.]L430 _l,706 116 Total liabilities payable frem restricted assets ._A.119.430' 3.706.118 g CURRENT LIABILITIES: !g Accounts payable 561,400 290,106 . i Notes payable.- current portion . 23,057 31,516^ Accrued' expenses _ 448,B11 41Lj.56 = , Total current liabilities 1.033.334 734 213 TOTAL LIABILITIES AND CAPITALIZATION $ 97,255,042 .$ 97,329,924 l r
- i. t The notes to the financial statements are an integral part of this statement <
r L .1 N. . 3
4 N SEBRING UTILITIES 00tfilSS10N-STATEMENTS OF RETAINED EARNINGS FOR THE YEARS ENDED SEPTEMBER 30, - 1989 AND 1988 I L-1963 1988 RETAINED EARNINGS (DEFICIT)~- Beginning of. Year $<38,687,591) $ < 34,568,977) Net Loss < 4.073.4831 < 4.118. 614) RETAINED EARNINGS (DEFICIT) - End of Year $<42,761,079) $(38,687,591) i l l q ( The notes to the financial statements are an integral part of this statement 2 I
SEBRING UTILITIES 00rtilSSION STATEfENTS OF lNOOME FOR THE YEARS ENDED SEPTEMBER 30, 1989 AND 1988 198) 1988-OPERATING REVEt#)E: Sales $ 18,459,700 $ 17,460,641-Other 288.988 310.186 Total operating revenue 18,748,688 17,770,827 OPERATING EXPENSES 13.456 353 J2.739.06}' OPERATING I N00ft 5',292,335 5,031,762 1 NTEREST I NODME 1.504.367 1.409.234 6,796,702 6,440,996-I NTEREST EXPENSE 10.870.190 10.559.610 NET LOSS '$< 4,073,488) . $< 4,118,614> j i i i The notes to the financial statements are an integral part of this statement t i
I d SEBRING UTILITIES COMMISSION STATEMENT OF CASH FLOWS-FOR THE YEARS ENDED SEPTEMBER 30, 1989 AND 1988 i 1939 __ 19%S CASH FLOWS FROM OPERATING ACTIVITIES: NET LOSS $< 4,073,488) $< 4,118,614) ADJUSTMENTS TO RECONCILE NET LOSS To-NET CASH PROVIDED BY OPERATING ACTIVITIES: Depreciation. 3,179,005 3,095,939 Anortization of. nuclear fuel 53,383 123,530 ' Bond deferred interest 4,820,861 4,398,086 Bond expense & discount anortization 252,585 257,649 : Decreases (increases) in accounts receivable < 329,340) 12,674-Decreases (increases) in inventories < 101,301)' 7,742 Decreases (increases) in prepaid expenses < 4,889) < 19,635) Increases (decreases) in accounts payable 271,294 < 368,949) Increases-(decreases) in accrued expenses 36,221 45,936 Increases (decreases) in accrued bond interest < 71.689) < 23.125) NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES 4.032.642 3.411.233 CASH FLOWS FROM INVESTING ACTIVITIES: Increases in property, plant and equipnent < 2.584.707) < 3.158.751) NET CASH FLOWS USED BY INVESTING ACTIVl TIES < JJ8_LJ10I) 0 < 3.J5A 751> CASH FLOWS FROM FINANCING ACTIVITIES: Increases (decreases) in contributions in aid of construction' 631,981 688,097 increases (decreases) in custoner deposits 197,646 65,481-
- Bonds redeened < 1,995,000) ~< 940,000)
Repagnent of notes payable < 31.517) <' 36.644) NET CASH FLOWS PROVIDED BY (USED BY) FINANCING ACTIVITIES <._L.196.890) <_ l21 066) l NET INCREASE IN CASH 251,045 29,416-1 CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR (includes $14,387,478 and $13,994,787 in restricted accounts in 1989 and 1988) 70.021.173 1RtRS1,757 CASH AND CASH EQUIVALENTS - END OF YEAR (includes-$14,800,790 and $14,387,478 in . restricted accounts in 1989 and 1988) $ 20,272,218- $ 20,021,173 i. l The notes to the financial statsnonts are an integral part of this statenent , _4
SEBRING UTILITIES CottilSSION NOTES TO THE FINANCIAL. STATEMENTS Note 1 - The Sebring Utilities Canmission is a political subdivision of the State , of Florida, created by a special act of the legislature for the purpose of providing water and electric service within -the geographical boundaries of the City of Sebring and outlying areas. The conmissioners , are appointed by the City of Sebring's elected city council. < Note 2 - Stamary of Significant Accounting Policies: I The financial statements have been prepared on the accrual basis of accounting based on the Uniform Systan of: Accounts prescribed.for L electric utilities by.the Federal Energy Regulatory Conmission and upon the' Uniform System of Accounts for Water Utilities issued by the National Association of Regulatory Utility Ccomissioners.. h 1 The Conmission is ccrmrised of only one ccrmonent unit. There are no potential conponent units to address in defining the Conmission's reporting entity. Property, plant and equipment are stated at cost. Construction costs include payroll and the related costs, such as taxes, pension and other fringe benefits, and allocation of indirect charges for engineering, supervision and transportation expenses. Construction period interest' is capitalized. The annunt of interest cost capitalized in 1989 and f 1988 was not material. The assets are depreciated over estimated useful lives ranging from 5 to 50 years, using the straight-line method of depreciation. A sunmary of property, plant and equipment- and accumulated depreciation is included in Note 8. Maintenance is charged with the cost of repairs of property, and the plant accounts are charged with the cost of renewals and replacements. l Nuclear fuel is carried in the electric plant accounts at cost, net of estimated energy consumed. The anount constmed is charged to nuclear ! fuel expense. Amortization of energy constmed has been determined by the unit-of-production method, based on engineering estimates. Nuclear fuel expense. does not include' a provision for salvage, value nor a provision for future disposition costs. Restricted fund investments and cash and. tenporary investments are-carried at cost, which approximates market. Electric rates include fuel adjustment provisions under which fuel and purchased energy costs above or below the base level are billed or. ! credited to custcmers. Unbilled utility revenues are accrued based on the estimated usage l between the last meter reading dates and the end of the year.
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h l SEBRING UTILITIES ~ cortilSSION NOTES TO THE FINANCIAL STATEMENTS l
. Note 2 - Sunnary offSignificant Accounting Policies (Continued): '
J Inventories are stated at the lower of cost or1 market. Cost is i detennined generally on am : average cost nothod, except for fuel. ! inventory costs, which 'are' determined using the .last-in, first-out ' (LIFO)'nethod. Reusable naterials - that have been renoved fram service _ t are included in inventories -at the -_ carrying .value 'of. similar! new- ! materials. q lesuance expenses related to _the bonds payable are ~ deferred: and -l' wnortized over the lives -of the bonds using the bonds outstanding
. method. Discounts and premians are amortized using -the interest method.
i r Note 3 - Debt: [ Aggregate anounts of debt naturing -and? sinking fund requirenents during' each of the next five years ending: Septenber 30- are as follows: Sinking _
. 3 1urities_,, Fund - Carbined 1990 $ 4,038,057 _$. 820,000' _$ 4,858,057 .
1991 .5,259,900 930,000 -6,189,900 1992 6,080,900 1,120,000' 7,200,900 , 1993 7,012,030 1,093,000 8,105,030
.1994 8,129,163 849,000 8,978,163 :
Later Years . _1.03.326._018 20.432.790) 82.893 2]J
$133,846,118. $<15,620;790) $118,225,328- .
Following is a sunnary of notes payable' at Septenter '30',1989: Current Long-tenn
. -Portion Portion S Mortgage notes payable, bear.
interest at 8% and 12% annually,
'due in 1992 and 1998 $ 9,005 $69,964 Equipment notes payable, bear interest at-8.3% to 10.5%, due . _
.in 1990 141 012 _ 0
$23,057 $69,964-In Septenber, 1978,cthe Cannission provided for advance refunding on the; Series 1964, 1973 and 1975 revenue-bonds-(Refunded Bonds) by the sale of-
$8,400,000 Utilities Systen Revenue Bonds (Series.1978) and Utilities System Special Obligation Bonds (Series 1978A)'. Frcm the proceeds of ther sale of the two issues, and other sources, sufficient monies were-deposited into irrevocable escrow accounts, and invested in United _
t w -
SEBRING UTILITIES CottilSSION NOTES TO THE FINANCIAL STATEMENTS Note 3 - Debt (Continued): States obligations that will provide sufficient funds for the payment of the maturing principal and interest on the Series 1964, 1973 and 1975 outstanding revenue bonds, in March, 1981, the Series 1981 Bonds _were-issued and a portion of the proceeds was used to refund the Series 1978 Bonds and in March and April, 1986 the Series 1986-Bonds were issued and a portion of .the proceeds was used to refund the Series 1981 and 1984 Bonds and the 1986 Notes in the same manner that the 1978 Bonds refunded prior issues. The aggregate. balance of refunded bonds outstanding att September 30, 1989 amounts to $102,088,970. The Series 1978 Bonds, the Series 1981 Bonds, the Series 1984 Bonds,'the
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Series 1986 Bonds, and the 1986 Notes are secured by a pledge of the net' revenues of the Conmission. The pledge of net revenues for the Series 1984 Bonds and Series 1986 Notes is junior and subordinate-to the pledge. of net revenues for the Series 1981 and Series 1986 Bonds. Series of 1986 Revenue Bonds outstanding at September 30, 1989: Capital Appreciation Series 1986A Serial Bonds, [ maturing semi-annually frcm Apri1 1, .1987 through i Octobe- 1, 1994, insured as to principal and interest, zero coupon rate, 5.5% to 7.2% effective rate $ 28,935,000 ( Current Interest Series 1986A Serial Bonds, maturing semi-annually from April 1, 1995 through April 1, 2001, insured as to principal and interest, 7.0% to 7.35% l_ coupon rrte and effective rate 75,215,000 Capital Appreciation Series 1986B Serial- Bonds, , maturing semi-annually from . April 1, 2001 through April 1, 2012, uninsured, zero coupon rate,- 11.5% effective rate 83,000,000-Capital Appreciation / Current- Interest Series- 1986B Term Bonds, uninsured, due October 1,_ 2020, zero coupon rate until October 1, 2000, current interest conmences October 1, 2000, 11.5% effective rate 60,800,000 Series 1986C, insured as to principal and interest, maturing semi-annual 1y from Apri1 1, 1988 through October 1, 1990, 9.25% coupon rate and effective rate -4.000.000 251,950,000 Unamortized discount 123.367.281 Total long-term portion 128,582,719 Amount payable frcm restricted assets 4.119'.430 Total $ 132,702,149 q SEBRING UTILITIES CCitilSSION NOTES TO THE FINANCI AL STATEMENTS i Note 3 - Debt (Continued): The bond resolutions provide, among other things, that_a sinking fund- l and renewal and replacement fund be established and funded and that the Conmission maintain net revenues of at least 1.10 times the aggregate l debt service for the fortheeming twelve-month period. = At Septenter 30, ;
.1989, the Ccrmiission has conplied - with these requirements and there are 'i no events of default as defined in the bond- resolutions. The i resolutions also provide for-issuing additional parity bonds. ,
l Note 4 - Pension Plan: P1an A ncripijpn q l Sebring Utilities Comnission contributes to the Sebring . Utilities y Ocnmission Retirement: System which is a Single-Enployer Pension !' Enployees' Retirement System (PERS). It is the responsibility 'of the Sebring Utilities PERS to function as' an investment and adninistrative a agent for Sebring Utilities Ccnmission with respect to the pension plan, i For years ended September 30, 1989 and 1988, the Conmission's. total ! covered payroll for all enployees amounted to'$2,522,555 and-$2,293,940, i respectively. Covered payroll refers to all ccnpensation paid - by the ! Conmission to active employees' covered by. the Sebring Utilities Ccnmission Retirement System on which contributions to- the plan are based. Based upon provisions of the pension plan, all enployees are required to enter the plan upon their date of enplwaent. Under- provisions 'of the l plan, pension benefits vest after ten years of full-time enployment. An enployee may retire at age 60 and receive pension benefits _ based on a percentage of his average monthly earnings for his highest five (5) { consecutive years taking into consideration years of: service and years , of enployee conteibutions. The. earnings base includes alI cenpensation. -! The plan also provides for early retirement, death and disability benefits. Under provisions of the plan, all enployees must contribute 5% of their gross earnings. In addition, the Ccrmission must provide annual: contributions sufficient to satisfy the actuarially~ determined contribution requirements as mandated by the plan. i I
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t SEBRING UTILITIES CortilSSION s NOTES TO THE FINANCIAL STATEtTNTS - Note 4 - Pension Plan (Continued): l L- Eunding StatMs and Progre.11
- r. Presented below is the total pension benefit obligation of Sebring
( Utilities Cannission PERS. The snount of the total pension benefit' obligation is based on a standardized neasurement established _by Goverrmental Accounting Standards Board (GASB) Statement Nutber_ S that, [ with sane exceptions, nust be used by a PERS. The standardized neasurenent is the actuarial present value of credited projected benefits. The pension-valuation nethod: reflects the present value of. ; (- estinated pension benefits that will'be paid in future years as a result 1 L of'arployee. services perforned to date and is adjusted for the effects- j of projected salary _ increases. Ai standardized measure ~ of the pension benefit obligation .was adopted by the GASB to enable readers of PERS Financial Statenents to (a) assess Sebring Utilities Cannission PERS j funding status on a going-concern basis, (b)- assess progress nade' in j accunulating sufficient assets to pay-benefits when due, and (c) make. I comparisons wrong PERS. Because the standardized measure-is used only for disclosure purposes by { Sebring Utilities Cannission PERS, the measurement is independent of the l actuarial funding nethod used to detennine contributions to the PERS as l explained elsewhere in this note. l A variety of significant assunptions are used to detennine the I j standardized neasure of the pension benefit obligation ,and these i assunptions are sunnerized as follows: ! { - The present value of future pension pannents _was conputed at a l' discount rate of 8%. The discount rate is equal to the estinated long-term rate of return on current and future invesunents of the pension plan. , j Future pension paynents reflect the assuTption of an 8% annual salary-increase. , Future pension paynents reflect no post-retiranent benefit f increases, which is consistent with the terns of the pension agresnent , i The standardized neasure of the pension benefit obligation included in the most recent actuarial valuation report dated October 1, 1988, is as i follows: i i _9 1
SEBRING UTILITIES COHISSION NOTES TO THE FINANCIAL STATEMENTS Note 4 - Pension Plan (Continued):= Pension Benefit Obligation: Retirees and beneficiaries currently receiving ' benefits and tenninated arployees not yet receiving benefits $1,028,076' Current Enployees: AccuTulated suployees' contributions including } allocated invesbnent incone 597,628 Employer-financed vested 839,093 Enployer-financed nonvested _ 433.810 Total pension benefit obligation 2,898,607 1 Net assets available for benefits, . at market value 3.454.714. Assets in excess of pension benefit obligation $ 556,107 No changes in actuarial assunctions or benefit provisions-that would significantly affect the valuation -of. the pension benefit obligation occurred during the year ended September 30, 1989. Contributions Required _and Contributions Made Periodic enployer contributions to the pension plan are detennined on an-actuarial basis using the frozen entry age actuarial: cost method. Nornal cost is funded on a current basis. As of-the nest recent. valuation date, there was no unfunded actuarial accrued liability. Monthly _ contributions of nonnal cost is based on"the level percentage of payroll method. The funding strategy .should provide sufficient resou ces to pay enployees' pension benefits on a tinely basis. Total contributions to.the pension plan during the year ended [Septenber 30, 1989 anounted to $262,179 of which $136,051 and $126,128- were nade - by the Cannission and its enployees, respectively. Contributions ;during
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the. year ended Septenber~ 30, 1988 anounted to $206,823 of which $92,126 and $114,697 were made by the Commission and its- enp loyees -, respectively. The contributed anounts were actuarially detennined as- ' described above_and were based on actuarial. valuations as of October 1, < 1987 and October 1, 1988, respectively. Contributions made by Sebring Utilities Conmission and its enployees are shown as fol. lows: 1989 1988 Cannission 5.39% 4.01% Dnployees 5.00% 5.00% i s-SEBRING UTILITIES 00HilSSION NOTES TO THE FINANCIAL STATEMENTS 7 Note 4 - Pension Plan (Continued): l \ Significant actuarial assunptions used to canpute pension contribution requirenents are the sane as those used to detennine the standardized . neasure of the pension obligation. The conputation of the pension contribution requiranents for 1989 'and-
-1988 was' based upon the sane actuarial assunption, benefit provisions, actuarial funding nethod, and other significant factors as used to determine pension contribution requirenents in previous years, Trend Infornetion Trend infornation currently available for the past two years follows:
Net Assets Available- Unfunded Contributions Year Ended for Benefits as a Percentage Pension Benefit as a Percentage-
$_eotenter 30 of Pension Benefit Oblination ,__Objigation of Covered Payroll 1987 130,71% -
4.64% 1988 119,19% - 4,02% i Note 5 - Insurance in Force: Coverane 1,iqdts ! Worknen's Conpensation and Enployer's Liability $ - 100,000 Autonobile , Bodily injury and Property Danage ! Canbined' Single Limit $ 2,000,000 l General Liability , Bodily injury and Property Da'nage Combined Single Limit $ 2,000,000 Fire, Lightning and Extended Coverages Buildings and Personal Property $96,848,906 Fuels $ 2,486,740 Boiler and Machinery $10,000,000 - l 1 l 4 r
m SEBRING UTILITIES COMt$$KW 5 MOTES To THE FINANCI AL STATEMENTS Note 6 - Budget Analysis: 1989 IMS 1 EWda,1 Aglual Edqti Actual l operating Revenue $18,772,000 $18,748,688 $17,877,986 $17,770,827 1 Interest income operating Expense 1,300,000 1,504JC7 1,209,000 1,409,234 (.J,lS2dj2) QL22Lf25) < A214 4Q3)
. < hilhM6>
Income before I depreciation and anortization, and debt service $10,289,208 $10,029,430 $ 9,732,583 $ 9,660,465 I Variance over (Under) $< 259,778) $< 72,118) l Note 7 - Rate Revisionc: Electric and water rates were raised effective June 1, 1989 in i accordance with adopted rate schedules. Electric fuel rates adjustments are determined semiannually with an adjust ~ent being made Novenber 1, I 1988 and reviewed with the June 1,1989 rate change. Note 0 - Property, Plant and Equipment in Services
.,ht\G%.r.b$r 30 -
._ _- 12M _ _ _ . _ _ _ _ . _ _ 131_...
Accmulated Accurrulated I- Cosi_ _ Repreciation Land $ .9Mt 241,-877
- - QW.EtdddQO
$ 20 ,877 $ -
l Electric: j Generation Plants 72,557,135 18,274,487 72,322,187 15,932,388 ' Transmission System 3,436,891 951,687 2,875,852 847,546 Distribution System 12,404,163 4,050,172 10,952,936 3,638,703 water System 6,713,398 2,640,037 5,572,762 2,459,358 I Equipment 1,700,721 1,264,146 1,606,555 1,140,855 Storage Buildings _ _ _ 40L221 ML2M 366.651 131.961
$ 97,455,406 $ 27,329,823 $ 93,938,840 $ 24,150,818 Note 9 - Deposits and investments:
All cash and cash equivalents are on deposit at financial institutions. These deposits are insured up to $100,000 by F.D.I.C. To the extent that these deposits exceed $100,000, the a,uunts are collaterali:ed with -j capital or securities held by these financial institutions. { l i
s J -- r SEBRING UTILITIES CottilS$10N y SUPPLEffNTARY SOTDULES OF IN00ff ELECTRIC SYSTEM FOR THE YEARS ENDED SEPTEMBER 30, 1989 AND 1988 k 1989 J_._l9ja OPERATING REVENUEt - Sale of electricity $15,729,429 $15,079,947 (- Interdepartmental sales 223,769_ 197,207 Miscellaneous sales and service 208 161 11QdM _ Total operating revenue ' if.,242,186 15,587,340 OPERATING EXPENSES: Peneration and transmission Fuel 2,505,388 1,767,400" (- Purchased power 2,226,909-. . 2,630,519 operation and maintenance 2,246,925 2,278,800-Transmission system operation (--- and maintenance Distribution operation and maintenancet 214,747- 204,850 operating expenses. 187,444 191,885 Maintenance expenses 264,079 .208,673 {- Depreciation . 2,962,031 2,980,807 General and adninistrative expense 1,368,977 1',229,370 State taxes 335.162 301.901 Total operating expenses 12.311.632 11.724.205 OPERATING IN00ff $ 3,930,504 $ 3,863,135 a 1
s J SEBRING UT!L!T!ES ODttil$$1ON y SU'PLEMENTARY SCHEDULES OF iPCOME WATER SYSTEM FOR THE YEARS ENDED SEPTEMBER 30, 1989 AND 1988 k 1989 1968 OPERATING REVENUE: Sale of water $ 2,482,692 $ 2,157,780 ( Interdepartmental sales Total operating revenue 23.810 2,506,502 25.707 2,183,487 [ OPERATING EXPENSES: ( Production operation and maintenance: Electricity for ptiming 185,876 165,372 r Operating expenses-ether 80,028 73,817 ( Maintenance expenses 28,387 1 17,347 Tran nission and distribution operation and maintenance: Operating expenses ( Maintenance expenses 24,093 152,990 20,751 142,054 Depreciation 216,974. 185,132 General and adninistrative expenses 456.33 ( .. 409 2.61 Total operating expenses J.144JJJ JJJ4J69 OPERATING ltCOME f- $ 1,361,831 $ 1,168,627
s. I s c- SEBRING UTILITIES 00MilSS10N ( PENSION PLAN SUPPLEMENTARY INFORMATION FlSCAL YEARS ENDED SEPTEfSER 30, 1988 AND 1987 This schedule presents pension benefit inferration for the last two years currently available. This schedule will expand to ten years as the information becanes available. (6) Unfunded/- (4) . (Overfunded) (1) Unfunded/ Pension Net (Overfunded) Obligation as Arsets (2) -(3) Pension (5) . a percentage Year Available Pension Percentage Benefit Annual of annual Ended for Benefit Funded Obligation Covered covered payroll J-10 JintfitL i @listi1G!D (.1)L(RL - (2)-(1) _ P;vroll (4)/(5) 1987 $3,309,429 $2,531,885 130.7%' $<777,539) $2.182,329 <35.6>% 1988 3,454,714 2,898,607 119.2 (556,107) 2,347,360 (23.7) Analysis of the dollar rnounts of net assets available for benefits, pension benefit obligation, and unfunded pension benefit obligation in isolation can be , misleading. Expressing the not assets available for benefits as a percentage of the pension benefit _ obligation provides an indication of. pension funding status on a going-concern basis. Analysis of this percentage over time indicates whether the systen is becaning financially stronger or weaker. Ger.erally , the greater this percentage, the stronger the pension plan. Trends in unfunded pension benefit obligation and annual covered payroll are Lboth affected by inflation. Expressing the unfunded pension benefit obligation as a-percentage of annual covered payroll approxinately adjusta for the effects of- inflation and aids analysis of the cannission's progress made in accunulating sufficient assets to pay benefits when due. Generally, the smaller this percentage, the stronger the pension plan. s Suite 2830 Sutte 230 I O ou f 0 1ampa FL 336012640 leitphone B13 223 7577 t Pe$r t u 0 3716 1209 I Price Hhiedwuse Q EEPORT OP .INDEPJNDE!JT CERTIFIED PUBLIC ACCOUNTAtJTS B. I To the Board of Trustees Seminole Electric Cooperative, Inc. In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of revenue and expenses and patronage capital and of cash flows present I fairly, in all material respects, the financial position of Seminole Electric Cooperative, Inc. and its subsidiary (the Cooperative) at December 31, 1989, and the results of their operations and their cash flows for the year then ended in I conformity with generally accepted accounting principles. These financial statements are the responsibility of the Cooperative's management; our responsibility is to express I an opinion on these financial statements based upon our audit. We conducted our audit of these state:nents in accordance with generally accepted auditing standards which I require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining,-on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement I presentation. We believe that our audit providen a reasonable basis for the opinion expressed above. The financial statements of the Cooperative for the year ended December 31, 1988 were examined by other auditors whose I report dated March 3, 1989 expressed'an unqualified opinion on those statements.
. -J A A44.4- MbiA$uAL--
I Tampa, Florida February 20, 1990 I-I
.- s_ _e _ s,.,e, g
SEMINOLE ELECTRIC COOPERATIVE, INC. CONSOLIDATED BALANCE SHEETS I l December 31, 1989 1988 ASSETS Utility plant Plant in service $729,099,514 $723,374,838 Construction work in progress 2,070,859 2,120,832 731,170,373 725,495,670 g Less accumulated depreciation and amortization ( 125,796,115) ( 103,605.,739) 605,374,258 621,889,931 Nuclear fuel, less amortization 1,709.110 1,510,632 Utility plant, not _607,083,368 623,400,563 Investments, at cost Investments in associated organizations 13,136,409 13,461,012 Pollution control funds held by trustee including accrued interest of $177,633 in 1989 and $248,621 in 1988 19,287,026 15,248,177 Total investments 32,423,435 28,709,989 Current assets: Cash and cash equivalents 27,695,245 35,245,381 I Receivables, principally for sales of electricity Inventories, at average cost: 55,548,759 41,318,892 Materials and supplies 14,577,824 14,457,103 Fuel 33,912,128 31,063,307 Prepayments and other 2,216,639 2,326,384 Total current assets 133,950,595 _124,411,147 Deferred charges 48,934,255 43,249,090
$822,391,653 $819,770,789 The accompanying notes are an integral part of these financial statements.
.. . . . _ _ _ - - _ _ _ _ - . ._ A
SEMINOLE ELECTRIC COOPERATIVE, INC. . GONSOLIDATED BALANCE SHEETS [ December 31, 1989 1988 EQUITY AND LI ABILIT;LU.S Equity: Memberships S 1,100 S 1,100 Patronage capital 28,982,911 25,443,627 Donated capital 31,615 31,615 Total equity 29.015,626 25,476,342 Long-term liabilities: Long-term debt 632,620,598 636,788,474 Obligations under capital leases 34,812,460 35,391,789 Other 5,492,814 1,455,825 I . Total long-term liabilitios 672,925,872 673,636,00_B Current liabilities: Cui:::ent portion of long-term debt 4,251,652 2,802,831 Obligations under capital lenses 877,248 827,250 Accounts payable and accrued 1 liabilities 53,901,937 53,269,720 Accrued interest and taxes, other than income 13,255,447 13.452,318 Total current liabilities 72,286,284 70,352,119 Deferred gain on sale-leaseback of plant 28,256,387 29,619,650 Other deferred credits 19,907,484 20,686,590 Commitments (Notes 10 and 11)
$822,391,653 $819,770,789 l
l l l The accompanying notes are an integral part I of these financial statements.
s s ^ SEMINOLE ELECTRIC COOPERATIVE, INC, CONSOLIDATED STATEMENTS OF REVENUE AND EXPENSES AND PATRONAGE CAPITAL-L For the years ended December 31, 1989 1988 operating revenue $425,889,781 S388,625,367 operating expenses: Operation: Fuel 151,775,751 122,979,822 Other production expenses -27,060,017 24,693,688 Purchased power 86,727,160 88,961,671 Transmission 28,755,943 28,334,827 Administrative and general 14,483,039 13,093,477 Depreciation and amortization of r plant 24,792,219 23,323,337 ( Lease of coal-fired plant 31,883,757 31,537,123-Taxes, primarily property 9 536,589
, 9,410,593 375,014.475 342,334,538 operating margins before interest charges 50,875,306 46,290,829 Interest charges 58,957,718 57,011,754 Less interest capitalized ( 99,880) ( 94,442)
_ 58,857.838 56,917,312 Operating deficits ( 7,982,532) ( 10,626,483) P2tronage capital credits 60,979 175,321. Net operating deficits ( 7,921,553)' ( 10,451',162) Nonoperating income: Amortization of deferred gain on r sale of tax benefits - 8,951,740 ( Interest income 4,795,201 4,976,159 other income, net 6,665,636 54,145 Net margins 3,539,284 3,530,882 P tronage capital, beginning of year 25,443,627 23,417,816
.P0tronage capital retirements -
( 1,505.071) Patronage capital, end of year $ 28,982,911 $ 25,443,627-The accompanying notes are an integral part of these financial statements'.
SEMINOLE ELECTRIC COOPERAT EE. INC. CONSOLIDATED STATEMENTS OF CASH.ILQE$, L For the years ended December 31.
- 19P9 1988 Cash flows from operating activities:
Het margins $ 3.539.284 8 3.530.BP2 Adjustments to reconcile net income to net cash provided: [ Depreciation and amortitation 25.697.895 24.590.596 5 1987 precollected revenue - amortization . ( 6.358.630) Lease expense not requiring cash 3.3B3.109 3.568.959 Amortization of deferred gain on sale of tax benefits . ( 8.951.740) Amortjtation of deferred gain on sale. leaseback of plant ( 1.413.264) ( 1.382.422) Cain on sale of debt service reserve investments ( 4.897.405) - Reduction of reserve for future generating facilities costs ( 4.333.073) - Patronage capital credits ( 60,979) ( 175.321) Change in assets and liabilities: Decrease in leased assets 836.126 1.102.279 Increase in receivables ( 14.229.867) ( 10.039.959) ( (Increase)/ decrease in inventories (Increase)/ decrease in prepayments ( 2.969.462) 109.745 ( 2.859.867 432.356) Inctease in deferred charges ( 9.577.654) ( 10.014.419) Increase in other long-term liabilities 4.036.989 896.637 { Increase in accounts payable and accrued liabilities 632.217 21.477.792 (Decrease)/ increase in accrued interest and taxes ( 196.871) 11.634.620 (Decrease)/ increase in deferred credits ( 49.319) 462.760 Total adjustments (. 3.031.813) 29.238.663 Net cash provided by operating activities 507.471 32.769.54J Cash flows from investing activities: Increase in utility plant ( 6,124.786) ( 2.854,117) Proceeds from sale of debt service reserve investments 20.103.070 - Reinvestment in debt service reserve and other ( 18.787.505) 1.165.086 Net cash used in investing activities ( 4.809.221) ( 1.689.031) Cash flows from financing activities: Payments of patronage rapital credits - ( 1.505.071) Payments of long-term debt ( 2.719.055) ( 1.883.858) Decrease in capital lease obligations ( $29.331) ( 1.096.612) Net cash used in financing activities (- 3.248.386) ( 4.485.541) Net (decrease)/ increase in cash and cash equivalents ( 7.550.136) 26.594.973 Cash and cash equivalents at beginning of year 35.245.381 8.650.40B Cash and cash equivalents at end of year $27,695,245 $35.245,381 The sceompanying notes are an integral part of these financial statements.
-wt EPMINOLE ELECTRIC COOPERATIVEi. INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENIH i NOTE 1 - THE COOPERATIVEt Seminole Electric Cooperative, Inc. (Seminole) is a generation and transmission cooperative. "It is I responsible for meeting the electric power and energy needs of its eleven distribution cooperative members operating within-the State of Florida. Seminole's rates I are established by its Board of Trustees, which is composed of representatives from each member cooperative. Seminole constructed and operates two coal-fired I generating facilities (Seminolo Unit No. 1 and Unit No. 2) near Palatha, Florida with approximately 600 megawatts of output per unit. These units are connected to the Florida bulk power supply grid through Seminole's 230 KV I transmission lines and associated facilities. Both units commenced commercial operation in 1984. Seminolo holds a 1.6994% undivided ownership interest in the Crystal River Unit No. 3 (CR3) nuclear power plant operated by Florida Power Corporation. Seminole also owns I various transmission lines connecting individual membors to the Florida bulk power grid. In 1989, Acuera Corp., a wholly owned taxable subsidiary, I was formed for the primary purpose of the future acquisition of a power plant site to be leased to an Independent Power Producer (IPP). Seminole has an i agreement for the purchase of a significant portion of the capacity and energy that will be produced by the facility to be built and operated by such IPP. The consolidated financial statements combine the results I of operations and flaancial position of Seminole and Acuera Corp. All material intercompany transactions have i been eliminated. LQTJ: 2 -
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES: Seminole complies with the Uniform System of Accounts as prescribed by the Rural Electrification Administration (REA). In conformance with generally accepted accounting principles, the accounting policies and practices applied by Seminole in the determination of rates are also employed for financial reporting purposes. I
,, ,,,s.-- ._ __ - ---
. g-s s Utility Plant s
Utility plant owned by Semincie is stated at original
- cost. Such cost includes applicable supervisory and overhead cost, plus not interest charged during construction. 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 I replaced or retired, including cost of removal, not of any salvage value, is charged to accumulated depreciation. Certain leased transportation equipment is valued at the I total net present value of minimum lease payments. Operatino Revenue I i Seminole has wholesale power contracts with each of it6 11 members, whereby the members must purchase all electric power and energy which the member shall require for its I system within the State of Florida from Seminole to the extent that Seminole shall have such power and energy and - facilities available. Members may contir.ue to purchase H I from other suppliers under existing contracte, unless Seminole shall request that the member terminate such contracts, subject to the approval of REA. Subsequent to January 31, 1984, the only power supplier other than l Seminole has been the Southeastern Power Administration, which provides approximately 2% of the total energy required by all members,
- Operating revenue consists primarily of sales of electric power and energy by Seminole and a facilities use charge l for Seminole's transmission linec serving a single member ,
I cooperative. Member revenues include amounts resulting from a fuel and purchased power adjustment clause which I provides for billings to reflect increases or decreases in l fuel and fuel related purchased power costs. The adjustment factor is based on costs projected by Seminole
.. for a twelve-month period. Any overrecovery or underrecovery of costs plus an interest factor are to be refunded or billed to the members semi-annually.
Overrecoveries of $2,868,694 at December 31, 1989 and l S2,596,311 at December 31, 1988 are recorded as accounts l payable and accrued liabilities until refunded. Included in operating revenue for the years ended
] December 31, 1989 and 1988 are approximately $413 and $380 million of revenue from members, of which approximately
$47 and $36 million are included in receivables at December 31, 1989 and 1988.
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Depreciation and Amortization Seminole provides for depreciation on owned utility plant using the straight-line method at annual composite rates that will amortire the original cost of depreciable property over its estimated useful life. The rates for 1989 and 1988 were as follows: l 1989 _1988 Coal-fired production plant 3.10t 3.10% Nuclear production plant 3.20% 3.20% Transmission plant 2.75% 2.75% General plant 7.18% 7.23% i Amortization of leased assets under capital leases amounted to $836,126 and $766,423 in 1989 and 1988, respectively. Estimated costs of removal and disposal of nuclear production plant to be expended beginning in the year 2015 are being provided for on an unfunded sinking fund basis. Amortization of Deferred Gains Deferred gain on sale of tax benefits was amortized on a i straight-line basis over the five years ended in 1988. Deferred gain on sale-leaseback of plant is being amortized over the base lease term of 25 years commencing in 1985 and is reflected as a reduction of operating i expenses. Nonoceratino Income i Other income includes a gain on the sale of debt service reserve investments in the amount of $4,897,405 which was realized in 1989. Other income is net of $2,200,000 in I 1989 which is nonrecurring and represents the estimated uninsured portion of costs incurred in 1989 related to the May 1988 fire at the Palatka generating station. Capitalization of Interest i In accordance with procedures permitted under the Uniform System of Accounts prescribed by the REA, a portion of interest on borrowed funds, at average rates of approximately 8% for both 1989 and 1988 is capitalized as I a component of the cost of construction work in progress, and is reflected as a reduction of interest expense. Total interest costs incurred amounted to $61 million in I 1989 and $59 million in 1988 which includes the implicit interest portion of lease payments for capital leases. I
t 4 s Deferred Charaes At December 31, 1989 and 1988, deferred charges consisted , of unamortized debt expense and related prepayment I penalties, certain costs related to the May 1988 fire at a the Palatka generating station, certain nuclear fuel l disposal costs related to energy purchased by Seminole from Florida Power & Light Company subsequent to December 1, 1972, depreciation and interest expense on certain transmission lines and production common I facilities incurred prior to commercial operation of Unit No. 2, and other miscellaneous deferred debits. Costs associated with a load management incentive fee program I were recorded in 1989. These costs will be recovered primarily through rates over various amortization periods. During 1990, Seminole intends to reduce to ten years the I remaining amortization period of deferred depreciation and interest expense on certain transmission lines and production common facilities incurred prior to commercial I operation of Unit No. 2. Referred Credits At December 31, 1989 and 1988, deferred credits included a reserve for costs related to certain generating facilities, deferred lease expense and CR3 decommissioning i costs. During 1989, the reserve for costs related-to certain generating facilities was reduced by $4,333,073, which is included as other income. Cash Ecuivalents Generally, for purposes of the statements of cash flows, all short-term highly liquid investments with a maturity of 3 months or less are considered to be cash equivalents. Reclassification Certain reclassifications have been made to the 1988 I statements to conform to current classifications. There were no changes in not margins as previously reported. I I
,,,,,-,,,-i si ' ' " " ' ' ' " ' "
s - NOTE 3 - UTILITY PLANT: Utility plant at December 31, 1983 and 1988 was as follows: 1 1989 __ _ 1988 1 Owned property: Coal-fired plant $573,036,650 $566,482,503 Nuclear plant 9,963,507 9,483,414 i Transmission plant General plant Acquisition adjustment 87,078,837 19,046,088 557,902 87,L37,638 18,3e6,851 537,902 689,682,984 683,958,308 Leased property under capital leases: I I Transportation equipment 39,416,530 729,099,514 39,416,530 723,374,838 2,070,859 2,120,832 i Construction work in progress 731,170,373 725,495,670 l Accumulated depreciation Accumulated amortization of ( 121,662,509) ( 100,308,259) leased assets ( 4.333,606) ( 3,297,480) ( 125,796,115) ( 103,605,739)
$605;374,258 $621,889,931 NOTE 4 - INVESTMENTS IN ASSOCIATED ORGANIZATIONS:-
1 Investments in associated organizations at December-31, 1989 and 1988 consisted of the following: 1989 1988 Florida Rural Electric Cooperative Association $ 10,017 $ 10,017 National Rural Utilities Cooperative Finance Corporation (CFC): Membership 1,000 1,000 Capital Term certificates 1,402,544 1,403,264 Subordinated Term Certificates 9,031,456 9,031,456 Patronage Capital Certificates 2,019,050 2,274,148 National Bank for Cooperatives (NBC) 533,677 616,624 Other 138,665 125.303
$13,136,409 $13,461,812
- NOTE 5 - LONG-TERM LIABILITIES: Lona-Term Debt F At December 31, 1989 and 1988, long-term debt consisted L of: 1989 1988 f First mortgage-notes payable ~ l to Federal Financing Bank (FFB), guaranteed by REA, principal due in various installments through 2020, interest at 7.221% to 10.983% $464,698,099 $465,901,705 First mortgage notes payable I to REA, principal due in various installments through 2010, interest at 5% 5,553,089 5,657,805 Pollution control revenue ' bonds, payable to the Putnam , County Development Authority, guaranteed by CPC, principal I due in various installments through 2014, interest at adjustable rates, currently I 6.80% and 6.25% 158,400,000 159,750,000 First mortgage notes payable I to CFC, principal due in various installments through l 2019, interest at adjustable rates, currently 9.50% and 11% 8,221,062 8,281,795, 636,872,250 639,591,305 Less current portion ( 4,251,652) ( 2,802,831)
$632,620,598 $636,788,474 Interest paid on the above debt totaled $57,702,023 and I $43,788,871, in 1989 and 1988, respectively.
I The estimated maturities and annual sinking fund requirements of all long-term debt for the four years subsequent to December 31, 1990, are presented below: l Annual Maturities I year Endina December 31, and Sinking Fund _ Recuirements 1991 $5,799,000 1992 $6,465,000 1 1993 $7,128,000 1994 $7,928,000 Oblications Under Capital Leases The following is a schedule of future lease payments under capital leases together with the present value of the net minimum lease payments as of December 31, 1989: Year endina_ December _.31, 1990 I
$ 4,205,790 1991 4,204,318 1992 4,204,318 1993 4,204,318 1994 4,204,318 Later years 48,449,993 Total minimum lease payments 69,473,055 I Less: Amount representing interest (r 33,783,347)
Present value of minimum lease payments $35,689,708 The transportation equipment leases provide for renewals I and options to purchase at fair market value at various dates or upon expiration. Substantially all owned assets and leasehold interests are pledged as collateral for the above mentioned debt to the United States of America (REA and FFB), CFC and NBC. NOTE 6 - NET MARGINS AND EOUITY RESTRICTIONSt Under provisions 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 distribution of capital contributed by members is limited generally to twenty-five percent of patronage capital and n irgins of the next preceding year where, af ter giving
~ effeet to such distribution, the total equit.y will equal or exceed twenty percent of total assets. Distribution may be made, however, in such amounts as may be approved by REA through waiver of the aforementioned restrictions. - Such distributions to members totaled $1,505,071 in 1988. The REA mortgage requires Seminole to design its wholesale . rates with a view towards maintaining, on a calendar year basis, a Tinnes Interest Earned Ratio (as defined) of not less than 1.0 and a Debt Service Coverage Ratio (as I dufined) or not less than 1.0. An REA stipulation arising from the sale of tax benefits requires Seminole to design its wholesale rates to provide an annual Times Interest Earned Ratio (as defined) of not less than 1.05. In both 1989 and 1988, Seminole achieved a Times Interest Earned Ratio (as defined) of 1.05 and a Debt Service Coverage Ratio (as defined) of 1.3. NOTE 7 - NOTES PAYABLE: Seminole had available lines of credit totaling $87 million of which none were drawn at December 31, 1989. REA policy governs use of these funds. NOTE 8 - INCOME TAXES: Seminole is a non-exempt cooperative subject to federal and state income taxes and files a consolidated return. I As a cooperative, Seminole is entitled to exclude from taxable income those margins assigned to members as patronage credits. I Seminole's ratemaking methods provide that income taxes a are recognized as expense and are recovered through rates when currently payable. In addition, income tax credits I are accounted for as a reduction of taxes currently payable in the period utilized. In 1989 and 1988, there were income tax losses due to timing differences in the I recognition of certain income and expenses for tax and financial reporting purposes, primarily depreciation and amortization of deferred gain on sale of tax benefits and lp sale-leaseback of plant. In 1989 and 1988, no income taxes were 3.id. 1 Since Seminole became taxable in 1981, deferred taxes have l not been provided on approximately $240 million of t 6ing differences. Current ratemaking practices provide future recovery of taxes related to timing differences previously flowed through. At December 31, 1989, net operating I losses and income tax credits of approximately S193 1
- f. -- - --
~ million and $13 million are available to offset future s taxable income and tax liabilities, respectively, through 2004 and 2001. Member loss carryovers of approximately ~ $47 million, which do not expire, are available to offset j future member income. In 1987, the Financial Accounting Standards Board issued Statement No. 96, " Accounting for Income Taxes", which l Seminole is required to adopt by 1992. This standard will require certain changes in the way Seminole accounts for I. income taxes, including a requirement to record an asset-related to timing differences previously flowed through and the establishment of the related income tax liability. I Adoption of this standard is not expected to have a material effect on the financial statements. NOTE 9 - RETIREMENT PLAN: substantially all Seminole employees participate in the I National Rural Electric Cooperative Association (NRECA) Retirer 69nt and Security Program (the Program), a defined benefit pension plan qualified under Section 401 and tax-I exempt under Section 501(a) of the Internal Revenue Code. Seminole had made annual contributions to the Program equal to the amounts accrued for pension expense until July 1, 1987, when a moratorium on contributions came into 1 effect due to reaching full funding limitation. Accordingly, there was no pension expense for 1989 or 1988. In this multiemployer plan, which is available to i all member cooperatives of NRECA, the accumulated benefits and plan assets are not determined or allocated separately by individual employer. I NOTE 10 - OPERATING LEASES: At December 31, 1989, seminole is obligated under certain leases of generating facilities and transportation equipment, which leases expire on various dates through 2009. The lease of the generating facilities contains a 1 variable interest rate component that could affect future lease payments. Base rental obligations under these leases are payable as follows: Year endino December 31, 1990 $ 40,127,253 1991 40,795,758 1992 40,795,758 1993 40,795,758 1994 40,795,758 Thereafter $588,601,843 i
- Rental payments for the transportation leases totaled ~
$3,829,412 for 1989 and $3,859,284 for 1988. These payments are included as a cost'of inventory and expensed based on the tons of coal burned throughout the year.
L NOTE 11 - COMMITMENTS: Seminole is purchasing coal for the plant under long-term contracts expiring in 2010. Contract terms specify I minimum annual purchase commitments and prices, which are subject to adjustment for changes in costs. In addition, Seminole has long-term contracts for coal transportation. I . Contract terms include a minimum cost as determined by a base quantity of tons shipped and prices, which are subject to adjustment for changes in costs. Total charges under these agreements were approximately $100 million in I 1989 and $84 million in 1988. I I I I I I I
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t i I ; 1 1 ( I i i I FINANCIAL STATEMENTS l AND ) INDEPENDENT AUDITOR 5' REPORTS CITY OF ALACHUA ! ALACHUA, TLORIDA ! -l SEPTEMBER 30, 1989 h
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~ FINANCIAL STATEMENTS AND L . INDEPENDENT AUDITORS' REPORT CITY OF ALACHUA ALAChUA. FLORIDA SEPTEMBLR 30, 1989 l CONTENTS PAGE ' INDEPENDENT AUDITORS' REPORT 1 CENERAL PURPOSE FINANCIAL STATEMENTS Combined Balance Sheet - All Fund Types and Account Groups 2-3 I Combined Statement of Revenues. Expenditures and Changes in Fund Balances - All Governmental Fund Types 4 Combined Statement of Revenues. Expenditures and Changes in Fund Balances - Budget and l Actual - Governmental Fund types j Combined Statement of Revenues. Expenses 5-6 I and Changes in Retained Earnings - All Proprietary Fund Types 7 Combined Statement of Changes in Financial I Position - All Proprietary Fund Types 8-9 NOTES TO FINANCIAL STATEMENTS 10 - 29 1 ACCOMPANYING INFORMATION - Combining and Individual i Fund Statements General Fund balance Sheets 30 Statement of Revenues - IMdget and Actual 31 1 Statement of Expenditures - Budget and Actual 32 - 33 Special Revenue Fund - Community Development Block Grants Combining balance Sheets 1 Combining Statements of. Revenues. Expenditures and 34 Changes in Fund Balance 35 Statement of Revenues. Expenditures and Changes in Fund Balance - Budget and Actual - CDBG 1 36 Statement of Revenues. Expenditures and Changes in Fund Balance - Budget and Actual - CDBG II 37 Capital Project Fund - Gulf Breeze Loan Program Statement ot Revenues. Expenditures and Changes in Fund Balance - Budget and Actual 38 Proprietary Funds Combining Balance Sheet 39 - 40 Combining Statement of Revenues. Expenses and Changes in Retained Earnings 41 Combining Statement of Changes in Financial Position 42
s Purvis Gray & s Company w INDEPENDENT AUDITORS' REPORT Honorable Mayor and City Commission City of Alachua Alcchua Florida Ws have audited the accompanying general purpose financial statements of the City of Alechua, Florida, as of and for the year ended September 30, 1989, as listed in the table of contents. These general purpose financial statements are the responsibility of the [ City's management. Our responsibility is to express an opinion on these general purpose fin:ncial statements based on our audit. [ Except as discussed in the following paragraph, we conducted our audit in accordance with ganarally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and ( pstform the audit to obtain reasonable assurance about whether the general purpose fin 1ncial statements are free of material misstatement. An audit in accordance with these stcndards includes examining, on a test basis, evidence supporting the amounts and dicciosures in the general purpose financial statements. An audit also includes assessing th2 accounting principles used and significant estimates made by management, as well as oveluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. ! W:2 did not obtain sufficient evidential matter to determine if property, plant and equipment recorded in the Proprietary Funds is fairly presented at cost or estimated historical cost, due to insufficient detail within the City's property records. In our opinion, except for the effects of such adjustments, if any..as might have been dotermined to be necessary had we been able to determine the propriety of amounts recorded [ es property, plant and equipment in the Proprietary Funds, the general purpose financial . stotements referred to above present fairly, in all material respects, the financial position of the City of Alachua Florida, as of September 30, 1989, and the results of its operations and the changes in financial position of the proprietary fund types for the yscr then ended, in conformity with generally accepted accounting principles. Certified Public Accountants P.O. Box 23999
- 222 N.L 1st Street
- Cainewille, florida 32602 * (904) 378-2461 Laurel Ridge Professional Center
- 2347 S.E.17th Street
- Ocala, Florida 32671 * (904) 732 3872 1704 Metropolitan Blvd., Suite 3
- Tallahassee, Florida 32308 * (904) 385-0554 MtMatt% of AMittCAN AND flotKM IN$111Uft$ OF Cit 11FitD PUBLIC ACCoVN1ANil utu6f t of AMitlCAN IN111tVit of CitisittD PUBLIC ACCOUNIAN1t rtrmit CoumNats ANo n t.C PRAcTICI SICitoNS
d as, H:norable Mayor and City Commission City of Alachua s Alcchua, Florida ( INDEPENDENT AUDITORS' rep 0RT (Concluded) [ Our audit was made.for the purpose of forming an opinion on the general purpose financial Ototements taken as a whole. The combining and individual fund financial statements listed in the table of contents are presented for purposes of additional analysis and are [ n:t a required part of the general purpose financial statements of the City of Alachua, Fhrida. Such information has been subjected to the auditing procedures applied in the cudit of the general purpose financial statements and, in our opinion, except for the ( eff cto of such adjustments, if any, related to the matters discussed in the third p;r: graph, is f airly stated in all amterial respects in relation to the general purpose fin:ncial statements taken as a whole. Nov::mber 20, 1909 Gainesville, Florida p AAd ( { i
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i CITY OF ALACHUA TLORIDA i i GENERAL PURPOSE FINANCIAL STATEMENTS , I : i Thsse basic statements provide a summary overview of the financial position of all funds and account groups and of the operating results of all funds. They also serve as'an ! introduction to and summary of the more detailed statements included in the accompanying - information. , I A E I P I I I
J I 1 COMBINED BALANCE SHEET ! A
._LL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 1989 ,
CITY OF ALACHUA. FLORIDA f ASSETS GOVERNMENTAL FUND TYPES : SPECIAL CAPITAL DEBT , GENERAL REVENUE PROJECT SERVICE C:sh and Time Deposits $$52,853 $ 5,000 $ 83,187 $36,861 Rsceivables (Net of Allowances For g> Unco 11ectibles Parenthetically Indicated): 102,591 g; Taxes Accounts ($13,725) , Special and Sewer Assessments Accrued Interest and Penalties 1,720 : Other Receivables 8,357 . Dus From other Governments 20,685 gl Inventory of Utility Supplies 9,570 3 i Propsid Expensew Unbilled Revenue Rectricted Assets : Cash. Investments and Accrued Interest i Other Receivables Property, Plant and Equipment - Cost Less Accumulated Depreciation For Proprietary ; Fund Types; Cost For General Fixed Asset ; Account Group Untmortized Bond Issue Costs g! Aaount Available For Retirement of General g!. Long-Term Debt Amount To Be Provided For Retirement of General Long-Term Debt l;. u TOTAL ASSETS $695.776 $ 5.000 $ 83.18_7
. $36.861 II .
t See accompanying notes. l i
- =. -
w ( i (- ! i
.i i
ACCOUNT GROUPS PROPRIETARY GENERAL
-l GENERAL TOTALS
[. FUND TYPES FIXED LONG-TERM (MEMORANDUM ONLY) ENTERPRISE ASSETS DEBT , 1989 1988-( $ 538,172 $ 1.216.073 $ 1,577,001 l r [' 409,377 102,591 409,377 77,225 l 363.875- i 1,069 1,069 1,134 : 212 1.932 . 4,368 -; 5.558 13,915- 32.708 [ 20,685 20,419 l 249.631 249,631 185.961 l 12.384 21.954 17,407 ! 78,705 78.705 59.668 I I, 1,638.654 1.638.654- 1,857.563 ; 5.383 O i
-I 7,088.361 $2.508.135 9.596.'496 9.402.946 138,118 .!
138,118 143.330 i
$ 36.861 36.861 37.121 y 974,612 974,612- '991,931 ;
- i. *
$10.160.241 $2.508.135 $1.011.473 M $ 14.778.0td1
'I i
(Continued). . See accompanying notes. l j
COMBINED BALANCE SHEET l B ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 1989 CITY OF ALACHUA. FLORIDA g (Concluded) g. LIABILITIES AND FUND EQUITY GOVERNMENTAL FUND TYPES-g SPECIAL CAPITAL DEBT GENERAL REVENUE PROJECT SERVICE. LIABILITIES Accounts Payable $254,704 $ 67,725 Other Accrued Expenses. 20,379 - Payable From Restricted Assets: Accounts Payable . Accrued Interest Current Portion of Bonds Payable Customer Deposits Deferred Revenues and Credits 99,327__ $ .5,000 Notes Payable - Gulf Breeze Notes Payable - Banks 300,000 Chattel Mortgage Payable Revenue Bonds Payable Accrued Compensated Absences TOTAL LIABILITIES 374,410-- 5,000 367,725 $ 0 FUND EQUIH Contributed Capital Investment in Goeral Fixed Assets Retained Earningst . Reserved For Debt Service and Contingencies Unreuerved Fund Balance: - Reserved 118.524 (284,538) 36,861 Designated 33 g Undesignated 202,809 g TOTAL FUND-EQUITY 321,366 0 (284,538) 36,861 TOTAL LIABILITIES AND FUND EQUITY }193M }_ 5.000 $ 83.187 M .. I See ac _ ,an,1n, _ es. I
-a-l:
9 W. ~- L l
' ACCOUNT GROUPS PROPRIETARY GENERAL GENERAL TOTALS FUND' TYPES FIXED LONG-TERM (MEMORANDUM ONLY)
_ ENTERPRISE ASSETS DEBT 1989 1988 _ [g $ 176,856 30.037
$ 499,285- -
$ 263.823 50,416' 52,234 i
0 91,302 ! 18,925 1 11,000 18.925 19,225 11,000 11,000- 4 100,575 100,575 94,783 1 377,112 481,439 514,099- l
$ 970,000 970,000 -985,000' 72,721 372,721 0 !
8,978 3,848 12,826- 19,110 1 8.336,868 8.336,868 23,697 8,337,034 37,625 61,322 -59,037 i 9.156.769 $ 0 1.011,473 10,915,377 10,446.647 1,486,783 1,486,783 1,394,683 i 2,508,135 2,508,135 2,429,473 1.333,931 1,333,931 '1,443,861-l (1,817,242) (1,817,242) '(2,023,553) , i ( 129,153) 756,'155 ; 33 . .37 202.809 330,737 1.003,472 _ 2,506,135 0 3,585,296 4,331,393 110.160,14.1 $1.011.473 $14.500.673
$2.508.1.Q $ 14.778.040;
-i 1
See accompanying notes. 1
I COMBINED STATEMENT OF REVENUES, EXPENDITURES'AND CHANGES IN FUND BALANCES . ALL GOVERNMENTAL FUND TYPES FOR THE YEAR ENDED SEPTEMBER 30, 1989
~
CITY OF ALACHUA FLORIDA _ REVENUES Taxes and Special Assessments Licenses and Permits Intergovernmental l Charges For Services E Fines and Forfeitures Interest and Miscellaneous - TOTAL REVENUES EXPENDITURES Currents l B General Government Public Safety _- ; Physical Environment gi Transportation g;' Economic Environment Culture and. Recreation Capital Projects l' Debt Service = (TOTAL EXPENDITURES) EXCESS (DEFICIENCY) 0F REVENUES OVER (UNDER) EXPENDITURES i OTHER FINANCING SOURCES (USES) l ' Transfers In (Transfers Out) TOTAL OTHER FINANCING SOURCES (USES) EXCESS (DEFICIENCY) 0F REVENUES AND OTHER FINANCING SOURCES l OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCES, BEGINNING OF YEAR FUND BALANCES, END OF YEAR .
)
I: , Iq See accompanying notes. ; El 5-l..'
regr* . GOVERNMENTAL FUND 7 YPES TOTALS SPECIAL CAPITAL DEBT (MEMORANDUM ONLY) GENERAL REVENUE PROJECT SERVICE 1989 1988
$ 722,730 $ 722,730 665,870-32,326 32,326 29,180-l 459,731 25,886 44,151
$ 51,441 0
0 511,172 25.886 834,358 18,835 44,151 '48,360-85,030 14.030 33,624 lg 1,369,854 65,471-33.624 $ 0 132,684 1,468.949-82,217' 1,678,820-l 248,563 0 0 0 248,563 203,199-842,439 0 0 0 842,439 i 704,516-- 65,782 54,341 I 206.531 0 11,130 0 0 0 0 0 0 0 120,123 217,661 62,333 161.707 0 430.653 79,617 0 0 0 79,617 .73,647 1 2.387 0 0 0 929.040 0 88,473 0 929,040 386.631 90.860 91,426 ( 65,471) ( 929,040) 88,473 (2,528,303) ( 2,114.112) l
.I ((1,445,319) 75,465) 0 ( 895.416) ( 88,473) 1 (1,059,354) ( 435,292) 46,113 0 0 88.213 134,326 172,456
( 88,212) 0 0 0 88,212) ( ( 126,343) ( 42,099) 0 0 88,213 46,114 46,113-( 117,564) 0 ( 895,416) ( 260) (1,013,240) ( 389,179) 438,930 0 610,878 37.121 1,086,929 1,476.108 i
$ 321.366 $ 0 $( 284.538) } _31 861 73,63j!
$ $ 1.086.929 i
.1 l
l See accompanying notes.
,I I
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - l l BUDGET AND ACTUAL GOVERNMENTAL FUND TYPES FOR' THE YEAR ENDED SEPTEMBER 30, 1989 i CITY OF ALACilUA, FLORIDA l t GENERAL FUND VARIANCE FAVORABLE-BUDGET ACTUAL (UNFAVORABLE) , REVENUES Taxes and Special Assessments $ 673,460 $ 722,730 $ 49,270 Licenses and Permits 32,000 32,326 326- g' Intergovarnmental 506.910 459,731 ( 47,179) g Charges For Services 20,300 .25,886 5.586 Fines and Forfeitures 60,000 44,151- ( 15.849)- g Interest and Miscellaneous 57,500 1,350,170 85,030 1,369,854 27,530' 19,684 g TOTAL REVENUES EXPENDITURES Current General Government 278,672 248,563 30,109-Public Safety 810,422 .842,439 ( 32,017) Physical Environment 74,066 65,782- 8,284 Transportation 213,765 206,531 -7,234 Economic Environment ~0 0 0 93,422 13,805 Culture and Recreation 79,617 Capital Projects 0 0 0 Debt Service 8,600 2,387 6.213 ' (TOTAL EXPENDITURES) (1,478,947) (1,445,319)- 33,628 EXCESS (DEFICIENCY) 0F REVENUES OVER (UNDER) EXPENDITURES ( 128,777) (~ 75,465)_ 53,312 OTHER FINANCING SOURCES-(USES) l Transfers In l46,113- 46,113 0 (Transfers Out) ( 88,213) ( '88.212) 1 .; TOTAL OTHER FINANCING SOURCES (USES) ( 42,100) ( 42,099) 1 : EXCESS (DEFICIENCY) 0F REVENUES AND 0THER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES , ( 170,877) ( 117,564) 53,313-FUND BALANCES, BEGINNING OF YEAR 438,930 438,930 0 FUND BALANCE, END OF YEAR } 268.053- $ 321.366 $ 53.313 L i l See accompanying notes. , l L
~ ~ A - L SPECIAL REVENUE FUND CAPITAL PROJECT FUND VARIANCE VARIANCE [-- FAVORABLE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) BUDGET ACTUAL (UNFAVORABLE)
$ 500,000 $ $1,441 $( 448,559) 0- 0 0 0 0 0 0 14.030 14.030 $ -9,000 $ 33,624- $ 24,624.
500,000' 65,471 ( 434.529) 9,000 33,624 24,624 0 0 0 0 0 0-0 0 0 0 0 0 412,978 54,341 358,637 0 0 0 87,022 11,130 75,892 0 0 0 0 0 0 0 0 0 ' 0 0 0 0 0- 0 0 0 0 560,000 929,040 ( 369,040) 0 0 0 0 0- 0 ( 500,000) ( 65,471) 434,529 ( 560,000) 369,040) ( 929.040) ( 0 0 0 ( 551,000) ( 895.416) ( 344,416) 0 0 0 0 0 0 0 0 0 -0 0' O O O O O O O l 0 0 0 ( 551,000) ( 895.416) ( 344,416) 1 0 0 0 610,878 610,878 , 0
.; $ $ 0 !
_Q $ Q $ 59,878 $( 284,538) _$( 344.416). ! i (Continued) See accompanying notes. I COMBINED STATEMENT OF REVENUES, EXPENDI7URES AND CHANGES IN FUND BALANCES - j BUDGET AND ACTUAL M GOVERNMLHTAL FUND TYPES FOR THE YEAR ENDED SEPTEMBER 30, 1989 ;g CITY OF ALACHUA, FLORIDA g (Concluded)- I
-REVENUES Taxes and Special Assessments Licenses and Permits g Intergovernmental g Charges For Services.
Fines and Forfeitures Interest and Miscellaneous TOTAL REVENUES 4 EXPENDITURES Current: l 3 General Government Public Safety Physical Environment Transportation Economic Environment Culture and Recreation Capital Frojects Debt Service (TOTAL EXPENDITURES) EXCESS (DEFICIENCY) 0F REVENUES OVER (UNDER) EXPENDITURES OTilER FINANCING SOURCES (USES) . Tranafers In (Transfers Out) TOTAL OTilER FINANCING SOURCES (USES)
-EXCESS (DEFICIENCY) 0F REVENUES AND OTHER FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER FINANCING USES - FUND BALANCES, BEGINNING OF YEAR FUND BALANCE, END OF YEAR I Se. _. anunS note.. I
B r I DEBT SERVICE FUND "- VARIANCE TOTALS FAVORABLE (MEMORANDUM ONLY)- BUDGET ACTUAL (UNFAVORABLE) 1989 1988
$ 722,730L -$ -665,870 I 32,326 511;172-25,886-29,180 834,358 18,835-'
44,151- 48,360 I$ 0 0
$ 0 0
$ 0 0
' 132,684:.
1,468,949 82,217 1,678.820 I i 0 0 0 248,563 '203,199 I O 0 0 O 0 0 0 0 0 842,439 120,123 704,516 60,153 l i 217.661 161.248 ~! 0 0 0 433,292 g 0 ! 0 0 0 .79,617 B .'73,647 0 0 0 929,040 386,631 i 88,473 88,473 0 90.860 91,426 l
-( 88,473) ( 88,473) 0 (2,528,303) (2,114,112)
( 88,473) ( 88.473) 0 (1,059,354)' ! ( 435,292) i 88,213 88,213 0 134,326 172,456 O O
]
O ( 88,212) ( 126,343) 88,213 88,213 I 0 46,114 46,113 ( 260) ( 260) 0 (1,013,240) ( 389,179)' 37,121 37,121 0 1,'086,929 1,476,108
.I_M8d L.___l(u_86_1 $ 0 $ 73.689~ $ 1.086.929 i
q l See accompanying notes. l
I COMBINED STATEMENT OF REVENUES, EXPENSES AND' CHANGES IN RETAINED EARNINGS ALL PROPRIETARY FUND TYPES = FOR THE YEAR ENDED SEPTEMBER-30, 1989 CITY OF ALACHUA FLORIDA PROPRIETARY TOTAL g FUND TYPES (MEMORANDUM ONLY) ENTERPRISE 1988 g . OPERATING REVENUES $ 3,648,496 $ 3,487,537 OPERATING EXPENSES Power Production Expense 2,073,311 2,069,139 g Customer Accounts 85,707 90,522 g Depreciation 280,737 233.767
. Distribution Expenses 215,036 203.171' g-General and Administrative Taxes 161,891 42,835 193,107-41,329 g
Treatment 131.543 129,386 (TOTAL OPERATING EXPENSES) (2,991.060) -(2,960,421)- OPERATING' INCOME 657,436, -527,116 NONOPERATING REVENUES (EXPENSES) Interest income 133,926 :130,046 (Interest on Long-Term Debt) ( 645,726) ( 565,551) (Amortization of Bond Issue Costs) ( 5.212) ( 7,656) : Miscellaneous Income 2,070 984
]
TOTAL NONOPERATING REVENUES (EXPENSES) ( 514,942) ( 442,177) INCOME BEFORE OPERATING TRANSFERS 142,494 84,939 (OPERATING TRANSFERS OUT) ( 46,113) '( 46,113) { NET INCOME 96,381 38,826: RETAINED EARNINGS (DEFICIT), BEGINNING OF YEAR ( 579.692) ( 618,518) RETAINED EARNINGS (DEFICIT), END OF YEAR $( 483.311) $( 579.692). I , 11 Il See accompanying notes. 3i
~'~
ll
J ~ COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION ALL PROPRIETARY TUND TYPES FOR THE YEAR ENDED SEPTEMBER 30, 1989 CITY OF ALACHUA.-FLORIDA J L PROPRIETARY. TOTAL FUND TYPES (MEMORANDUM ONLY)- ENTERPRISE 1988 SOURCE OF WORKING CAPITAL Nat-Income $' 96,381 $ 38,826' Items Not Requiring Outlay of Working Capital Depreciation end Amortization 297,783 -251,484 Write-Off of Construction-in-Progress 0 18.466-W;rking Capital.Provided From Operations 394,164 308,776 Increase in Deferred Credit - Special Assessments 7,250 13,552 Plant Salvage From Retirements l 24.485 13.313 Land Sales 5,258 2,083 Increase in Contributions 179,861 .7,000 i Increase in Deferred Credit - CR-3 ! Decommissioning Costs 20,346 13,320 D1 crease in Restricted Assets 187.171 1,939.487 TOTAL SOURCE OF'WORKINO CAPITAL 818.535 2.297,531 USE OF WORKING CAPITAL Utility Plant In Service Additions 305,925 1,472,194 Net Increase in Construction-in-Progress 184,717 12,006 D3 crease in Long-Term Liabilities: Reclassified as Current and Payments 16,445 15.044
. Plant Removal Costs I 22,487 10,366 !
D: crease in Current Liabilities Payable From Restricted Assets 85.810 668.040' (TOTAL USE OF WORKING CAPITAL) ( -615.384) (2.177.650) INCREASE IN WORKING CAPITAL (BELOW) }. 203.151 j _ 119.881 l i 3
.\
(Continued) ! See accompanying notes. 4 ;
B
- - COMBINED STATEMENT OF CHANCES IN FINANCIAL POSITION l ALL PROPRIETARY FUND TYPES- WB FOR THE YEAR ENDED SEPTEMBER 30,-1989 CITY OF ALACHUA FLORIDA (Concluded) -
PROPRIETARY TOTAL FUND TYPES (MEMORANDUM ONLY) l ENTERPk1SE 1988 CHANCES IN WORKING CAPITAL BY COMPONENT Current' Assets - Increase (Decrease): . Cash and Time Deposits $ 86,914 $ 172,025' Receivables 39,589 -6,563- g, Inventory 63,670 6,738 g'! Prepaid Expenses 75 3,361-Unbilled Revenue Current Liabilities - Decrease (Increase): Accounts-Payable ( 19.037-4,785) ( ( 14.399) ~ 1,129) liB Other Accrued Expenses ( 12.115) ( 11,516)- Power Costa Recovered in Advance 70,000 ( 68,765) 3 Deferred Credits and Developer Deposits 13,533 27,366 g Note Payable - First National Bank -( 72,721) 0 Current Portion of Long-Tenn Debt ( 46)- ( 363) ,.
-1 INCREASE IN WORKING CAPITAL (ABOVE) } 203.l_5_1_- _$ 119.831 I i I i l
Il I: ! See accompanying notes. = ~
?!0TES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FLORIDA
~- NOTE 1 -
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES l The City of Alachua, Florida, is a political subdivision of the State of Florida I i located in Alachua County. The legislative branch of the City is composed of a five (5) member elected commission. The City Commission is governed by the City Charter and by state and local laws and regulations. The, City Commission is 1 responsible for the establishment and adoption of policy. The execution of such policy is the responsibility of the Commission-appointed City Manager. I The City's major operations include various utility services - electric, water and sewer as well as police protection. road and street maintenance, parks,- recreation and other general government services. The City contracts with Alachua County for the provision of fire service at a cost of $100,000 to the I I City annually. Sanitation services are provided by a private company, but' billed by the City to its customers. The City retains an administrative fee on I sanitation services. I The accounting policies of the City of Alachua, Florida, conform to generally accepted accounting principles as applicable to governmenta. The following is a summary of the more significant accounting policies. _ Reporting Entity The basic criterion for including an agency, institution, authority, or other 1 organization in a governmental unit's reporting entity is the exercise- of oversight responsibility over such entities by the governmental unit's elected officials. Oversight responsibility is defined to include, but is not limited I to: financial interdependency; selection of governing authority; designation of management; ability to significantly influence operations; accountability for fiscal matters; and other factors including special financing relationships. There are no entities over which the City exerts any type of influence and, I accordingly, the accompanying general purpose financial statements include only the fund types and account groups of the City itself. Fund Accounting The City's accounting records are organized and operated on a fund basis. A fund is defined as a fiscal and accounting entity, with ' a self-balancing set of l accounts recording all financial resources with all related liabilities, reserves B and residual equities, or balances or changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives. Amounts receivable from or payable to other funds are shown in the accounts of an-I individual fund and separately presented in the accompanying general purpose financial statements until liquidated by payment or an interfund transfer. I The following fund types and account groups are used in accounting . for, the financial operations of the City: l Governmental Fund Types l (1) General Fund - to account for all financial resources not properly accounted for in another fund. (Continued) I l l NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FLORIDA (Continued) NOTE 1 -
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (Continued) - Fund Accounting (Concluded) a g. Governmental Fund Types (Concluded) (2) Special Revenue Fund - to account for the proceeds of specific. revenue sources- (other than special assessments, expendable trusts, or major restricted to expenditures for capital. specifiedprojects) purposes. that are The legally City uses _ this fund to account for the proceeds from the U.S. _ Department of Housing and Urban ~ Development Community Development Block Grants. - (3) Capital Project Fund - to account for financial resources to be used g for-the acquisition or construction of major capital facilities (other than those financed by proprietary fund types -and trust funds). The g City uses the Capital Project -Fund to account for 'the street, drainage, and utility construction and improvements financed . by the ~l Gulf Breeze loan proceeds. 5 (4) Debt Service Fund - to account for the accumulation of resources and 3 payment of general obligation bond principal and interest :from these - E resources. The City uses the Debt . Service Fund to account for the accumulation of resources and the payment of principal and interest on the Gulf Breeze loan. Proprietary Fund Types (5) Enterprise Funds - to account for operations that are financed and =g operated in a manner similar to - private business enterprises - where 3 the intent of the governing body is that costs of providing goods or services to the general public on a continuing basis be financed or 3 recovered primarily through user charges. The City's electric, water and sewer utility services are accounted for in these funds. g Account Groups l (6) The Account Groups are used to establish accounting control and B accountability for the government's general fixed assets and general long-term debt. These account groups are not considered funds'since g they do not reflect available financial resources and related g liabilities. Bases of Accounting The Governmental Fund Types are maintained on the modified accrual basdc of accounting. Under this method of accounting, revenues are generally rec agretzed , when they become measurable and available as net current assets. Revenues n ich are susceptible to accrual, i.e., being recorded when earned, include property ' and utility taxes, refuse collection fees and lot clearing and certain other fees. Expenditures are generally recorded on an accrual basis, i.e., when - incurred, except as follows: I1 (Continued) ~ NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FLORIDA (Continued) 7 - NOTE 1 -
SUMMARY
OF SIGNIFICANT ACCOUNTING p0LICIES (Continued) Bases of Accounting (Concluded) (1) Principal and_ interest on long-term debt are recognized when due; { (2)_ accumulated vacation and sick pay is not recorded in the General Fund since i the current amount is immaterial. ! The Proprietary Fund Types are maintained on the accrual basis of accounting. .; This -method of accounting relates. costs and expenditures to the period in which benefits of the outlays are received. It is intended to provide - an accurate matching of these benefits with associated revenues. Under the accrual basis of accounting, revenues are recognized when earned and measurable, and expenses recognized when incurred. i Budgeting-The City's procedures in preparing and adopting the annual budget are as follows: ' (1) The City Manager is responsible for preparing a proposed operating budget i for the upcoming year prior to September 30, that includes estimated j revenues, proposed expenditures, and other financing sources and uses. (2) Public hearings are held to obtain taxpayer comments and suggestions. The budget is enacted through passage of en ordinance , which sets spendine limits by department. (3) The City Manager is authorized to transfer budgeted _ amounts within any department in any fund, but may not revise total departmental _ expenditures without the approval of the-City Commission. The budgetary information for all governmental fund types in the Combined Statement of Revenues, Expenditures and Changes in Fund Balances is reported as amended. (4) Budgets are adopted on a basis consistent with generally accepted accounting principles. Appropriations lapse at the end of the year. Encumbrances are not recorded. (5) The budgets for governmental funds, which include the General Fund, Special Revenue Funds, Capital Project Fund, and Debt Service Fund that were either adopted or amended during the year by the City Commission were prepared on the same basis of accounting utilized by those specific- fund types. Comparisons of budgetary data to actual are not required'to be reported for proprietary fund types. Receivables Customer accounts and assessments receivable are recorded at their net realizable value reduced by an allowance for uncollectible accounts. Taxes receivable are recorded in total, offset by deferred revenue for the amount which is not measurable and available at September 30, 1989. Inventory Inventory in the General Fund is charged to expenditures when purchased. Inventory in the Proprietary Fund Types consists of supplies held for consumption or capital improvements and nuclear fuel. ' 1 l (Continued) I NOTES TG f1NANCIAL STATEMENTS CITY OF ALACHUA, FLORIDA. - (Continue'd) NOTE 1 -
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Property, Plant and Equipment and Depreciation g Property, plant and equipment in the Proprietary Fund Types are recorded at Ordinary
'g historical cost or at fair market value on the date donated.
maintenance and repairs are charged to expense as incurred. Provision has been made for the depreciation of such property, plant and equipment using the straight-line method. The straight-line rate is computed using the period of years considered as the normal service life of the property. Such rates are as follows: Nuclear Plant and' Equipment 2.7% to 3.6% g Electric Distribution Plant Water Plant 2% to 4% 3% to 10% g Sewer Plant 2.5% Other Equipment 10% to 20% Construction work in progress is not depreciated until completed and placed into service. Utility plant acquired through crants is depreciated along with other utility plant purchased or constructed. All other property and eculpment owned by= the City is reflected at cost in the General Fixed Assets Group of Accounts and shown as an expenniture in the fut.d - purchasing the property or equipment. Certain improvements such as streets, sidewalks and other infrastructure assets are capitalized along with other general fixed assets. No provision for depreciation 18-made for any general 'E fixed assets. 5-Bond Discount and Issue Costs Amortization 3 The bond issue costs on Utility Revenue Bonds of 1986 relating to the refunded -g debt are being amortized over the life of the bonds using the straight-line method. The bond issue costs relating to the new substation construction have been capitalized as a cost of the project. The bond ' discount on the Utility Revenue Bonds . of 1986 is being amortized - over the life of the bonds using the effective interest method. Capitalized Interent During Construction The City accounts for capitalized interest during construction in accordance with Statement of Financial Accounting Standards No. 34, Capitalization of Interest a Costs, and Statement No. 62, Capitalization of Interest Cost in Situations Involving Certain Tax-Exempt Borrowings and Certain Gifte and Grants. No g interest paid or payable during 1989 has been capitalized as a cost of construction in any fund or account group.- Long-Term Liabilities Because of their spending measurement focus, expenditure recognition for g' governmental fund types is limited to exclude amounts represented by noncurrent g liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type liabilities. They are instead reported as liabilities in the General Long-Term Debt Account Group.
-(Continued)
~- Y NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA. FLORIDA (Continued) NOTE 1 -
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Compensated Absences The City accrues accumulated unpaid vacation and sick pay when incurred, if material, in the Proprietary Funds and the General Long-Term Debt Account Group. Amounts representing the current liability for unused annual and sick leave in governmental fund types are immaterial. Therefore, the entire liability for governmental fund types is recorded in the General Long-Term Debt Account Group. Personnel policies allow permanent, full-time employees to accumulate a maximum of twenty (20) days vacation leave and sixty (60) days sick leave. One week vacation time is granted if sixty (60) days sick leave is accumulated. Employees are paid the balance of their accumulated vacation leave, in full., upon termination. Also upon termination, employees are paid the balance of their accumulated sick leave, up to a maximum of eighty (80) hours. Revenue Recognition Utility revenues are recognized when customers ata billed unless there has been a significant change in meter reading dates. In that event, unbilled or deferred revenues are recorded for consistency. Restricted grant revenues, which are received but not expended, are recorded as deferred revenues in the liability section of the balance sheet. Property Taxes Under Florida law, the assessment of all properties and the collection of all county, municipal and school board property taxes are consolidated in the offices of the County Property Appraiser and County Tax Collector. The laws of the state regulating tax assessments are also designed to - assure a consistent property valuation method state-wide. State Statutes permit municipalities to levy property taxes at a rate of up to 10 mills. The tax levy of the City is established by.the City Commission prior to October 1 of each year and the Alachua County Property Appraiser incorporates the City-millages into the total tax levy, which includes the County and the County School Board tax requirements. I All property is reassessed according to its fair market value January 1 of each j year. Each assessment roll is submitted to the Executive Director of the State Department of Revenue for review to determine if the rolla meet all of the appropriate requirements of State Statutes, j All taxes are levied on November 1 of each year or as soon thereaf ter as the assessment roll is certified and delivered to the County Tax Collector. All l unpaid taxes become delinquent on April 1 following the year in which they are ' assessed. Discounts are allowed for early payment at the rate of 4% in the month
- of November, 3% in the month of December, 2% in the month of January and 1% in the month of February. The taxes paid in March are without discount.
(Continued)
I NOTES TO FINANCIAL STATEMENTS l CITY OF AlACHUA. FLORIDA = (Continued) NOTE 1 -
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (Concluded) Property Taxes (Concluded) on or prior to June 1 following the tax year, certificates are sold for all delinquent taxee on real property. After sale, tax certificates bear interest of 18% per year or at eny lower rate bid by the buyer. Application for a= tax deed on any unredeemed tax certificates may be made by the certificate holder after a period of two years. Unsold certificates are held bv the County. Delinquent taxes on petsonal property bear interest at 18% per year until the tax B, is satisfied either by seizure and sale of the property or by the five-year 3 statute of limitations. Unsold tax certificates were $91,490 at September 30, 1989. including interest and are offset by deferred revenue of $91,490. Total Columns on the Combined Statements Total columns on the combined statements are captioned " Totals (Memorandum Only)" I W to indicate that they are presented only to facilitate financial analysis. -Data in these columns do not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. The totals from 1988 are presented for the purpose of additional analysis and are not a required part of the general purpose financial statements. Certain other minor reclassifications have been made to- these totals to provide more meaningful comparative data. NOTE 2 - DEPOSITS AND INVESTMENTS All monies collected by the City are required,to be deposited in accordance with the laws of the State of Florida. State Statutes authorize the City to invest in the following: a) Direct obligations of, or obligations guaranteed by, the U.S. Government; 6 b) interest-bearing time deposits or savings accounts in ' qualified institutions; g c) obligations of the Federal Farm Credit Banks; g d) obligations of the Federal National Mortgage Association; and e) the Local Government Surplus Funds Trust Fund. Deposits At year end, the carrying amount of the City's deposits was $440,074 and the bank balance was $499,029. All deposits of the City are maintained in qualified public depositories. I (Continued) I
5-NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA FLORIDA (Continued) NOTE 2 - DEPOSITS AND INVESTRENTS (Concluded) I Deposits (Concluded)- The Florida Security for Public Deposits Act; Chapter 280 of the Florida' Statutes, provides that qualified public depositories must maintain eligible i collateral having a market value equal to fif ty percent of the average daily I balance.for each month of all public deposits in excess of any applicable deposit insurance held by the depository during the twelve months immediately-preceding the date of any computation of the balance. As such, the depository is not I required to hold collateral in tLe City's name nor specify which collateral is held for the City's benefit. In the event of default, the Public Deposit' i Security Trust Fund, as created under the laws of the State of Florida, would be required to pay the City for any deposits not covered by depository insurance or I collateral pledged by the depository as previously described. Investmento I Investments are carried at cost or - amortized cost. The carrying ~ amount and market value of investments owned by the City of Alachua at September 30, 1989, was as Iollows: TYPE OF INVESTMENT AMOUNT VALUE Certificates of Deposit, 6.35 - 9.50% Interest $1,204,210 $1,204,210 I State Board of Administration of Florida Local-Government Pooled Investment Account, Variable Interest Rate (8.78% at September 30, 1989) 684,490 684,490 i $535,000 Par Amount United States Treasury Bonds, 7.625% Interest, Maturing February 15, 2007 520,990 497,684 TOTAL 12 409.690 $2.386.384 . I ' All the above investments are insured or registered, or held by the City or its agent in the City's name. The State Board of Administration deposits in I Tallahassee are maintained in an investment pool which invests primarily in commercial paper, repurchase agreements, bankers acceptance. notes and U.S. Government obligations. , NOTE 3 - INVENTORY Inventory in the proprietary fund types at September 30, 1989, consists of the following: Electric Utility Supplies $137,774 Water / Sever Supplies 16,925 Nuclear Fuel 83.603 Nuclear Plant Materials Inventory 11.249 TOTAL $249,6)1 (Continued)
I NOTES TO FINANCIAL' STATEMENTS CITY OF ALACHUA. FLORIDA
-lWi NOTE 3 - INVENTORY (Concluded)
The utility supplies and plant inventory are valued at cost as determined by the average unit cost method. The City's portion of nuclear fuel inventory at the Crystal River - 3 nuclear generating facility is recorded at amortized cost. NOTE'4 - DETAIL OF PROPERTY, PLANT AND EQUIPMENT Ceneral Fixed Assets Account Group g A summary of changes in general 11xed assets for the year follows: 3 NET BALANCE INCREASE BALANCE OCTOBER 1, 1988 (DECREASE) SEPTEMBER 30, 1989 City Park - Structures and Impro.ements $ 15,930 $ 15,930. Jail and Equipment .3.068 3,068 City llall - Building 152,150 152,150- ; City llall - Equipment, j Furnishings and Vehicles 77,416 $ 6,7FJ 84,176 i Fire Station 72,515 72,515 . Police Station 62,597 62,597 : Rolling Creen - Land and Buildings 638,700 1,160. 639,860 Parking Lots - Land 26,939 26,939 Street Paving and Sidewalks 805,977 805.977 Fire Trucks and Other Equipment 201,595 201,595 . l Mosquito Spraying Equipment 2,425 2,425 .! Land - Other 175,491 175.491 Police Department - Cars and ' Equipment 120,342 32,516 152.858 Streets and Roads Equipment 40,366
.21,959 62,325 (
Miscellaneous N 8.716 8,716 Parks and Recreation - Equipment 17,975 5.358 23,333 31 Physical Environment - Equipment 7,271 10,909 18,180 Ej EQ IP T kt R 429.473 $ 78.662 $2.508.135 l Proprietary Fund Types A summary of property, plant and equipment in the Proprietary Fund Types at l aj September 30, 1989, follows: I, (Continued) I n. s NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA FLORIDA s (Continued) -- NOTE 4 - DETAIL OF PROPERTY, PLANT AND EQUIPMENT (Concluded) Proprietary Fund Types (Concluded) Nuclear Generating Plant and Equipment $ 471,786 Electric Distribution Plant and Equipment 4,326.350 Water Plant and Equipment 1,740,465 Sewer Plant and Equipment 2,775,499 9.314,100 (Accumulated Depreciation) (2,422,462) -1 Utility Plant in Service - Cost Less ( Accumulated Depreciation Construction-in-Progress 6,891',638 i 196,723 TOTAL UTILITY PLANT - Cost Less Accumulated Depreciation $ 7.088.361 {
- r. Nuclear Generating Plant and Equipment represents the cost of the-City's .0779% i
( undivided interest in the Florida Power Corporation Crystal River Unit Number 3 -! (CR-3). I NOTE 5 - LONG-TERM AND OTHER DEBT i General Long-Term Debt The f ollowing tabulation summarizes the changes in the City's general long-term 1 debt account group during the year ended September 30, 1989: I BALANCE (PRINCIPAL BALANCE SEPTEMBER 30, 1988 NEW DEBT PAID) SEPTEMBER 30, 1989 City of Gulf Breeze, Florida, Local Govetnment Loan Program $ 985,000 $ 0 $( 15,000) $ 970,000 Chattel Mortgage: Computer ! Equipment - System 36 5.733 0 ( 1,885) 3,848 Compensated Absences 38,319 0 ( 694) 37,625 TOTAL $JMMl $ 0 $( 17.579_) $1.011.473. l (Continued) 1 I
~
NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FLORIDA = c (Continued) NOTE 5 - LONC-TERM AND OTilER DEBT (Continued) City of-Gulf Breeze, Florida - Local Government Loan Program : On June 1, 1987, the City of Alachua executed a Losn Agreement with- the City of l Gulf Breeze, Florida (the " Administrator" and " Sponsor") and Sun Bank National 1 Association, Orlando, Florida (as . Trustee), to borrow $1,000,000 from the { Sponsor's $100,000,000 Local Government Loan Program. The Sponsor had issued
$100,000,000 Local Govertunent Loan Program Floating Rate Demand Revenue Bonds, i Series 198$B (the Bonds") and deposited the, proceeds with Sun Bank to: fund the _ ,
program, available to governmental entities for financing and refinancing certain qualified projects. l The City of Alachua used the proceeds to finance certain specified. street - construction and improvement projects within the corporate limits of the City. . The loan is evidenced by a Governmental Unit Note which is payable solely from the City's Local Option Gas Tax revenues and Guaranteed Entitlement Revenues (the
" Pledged Revenues").
The Loan Agreement required the establishment of the following accounts: Loan Proceeds To receive the proceeds of the loan and disburse the prcject costs. To' collect the' Pledged Revenues. Revenue Sinking To accumulate sufficient monies to pay interest on the next semiannual interest date (December 1 and- : June 1), to pay principal coming due annually and ! to make required " Reserve' Payments." Reserve To accumulate monthly 1/72nd of the maximum annual ! debt service requirement, beginning' approximately September, 1990. in accordance with the Loan Agreement, money on deposit in the Revenue Account must be disbursed.in the following order: ; A. To satisfy current debt service requirements'of the note; B. to provide for the Reserve Payments, if any, when due; C. to the payment of any Additional Parity Bonds; D. beginning approximately September, 1990, to fund a reserve account equal to the maximum annual debt service requirement by the year 1996; E. to the payment of any junior lien obligations; and I F. for any other lawful purpose. l (Continued)
-NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FLORIDA (Continued)
NOTE 5 - LONG-TERM AND OTilER DEBT (Continued) City of Gulf Breeze, Florida - Local Government Loan Program (Concluded) The note is payable over 27-1/2 years with an average coupon rate of 7.729%. The following tabulation summarizes remaining interest and principal payment requirements of the note FISCAL YEAR ENDED SEPTEMBER 30 PRINCIPAL _ INTEREST TOTAL 1990 $ 15,000 $ 72,678 $ 87,678' 1991 15,000 71.852 86.852 1992 15,000 70,998 85,998 1993 15,000 69,112 84,112 1994 20,000 70,043 90,043-1995 - 1999 110,000 3 ? ",3807 434,807 2000 - 2004 155,000 277,125 432,125 2005 - 2009 220,000 204.509 424,509 2010 - 2014 325,000 99,422 424,422 2015 80,000 3,150 83,150 TOTAL 970_.022 $1.263.696
,$ $2.233.694 Other General Long-Term Debt
{ ! The chattel mortgage secured by the System 36 computer equipment is payable in monthly installments of $184, which-includes interest of 9.50%. The following tabulation indicates the principal retirement of general long-term debt by fiscal year:
)
FISCAL YEAR ENDED { SEPTEMBER 30. PRINCIPAL 1990 $ 16,905 [ 1991 16,943 ( 1992 15,000 l' 1993 15,000 1994 20,000 1 1995 and Later 927,625 ' TOTAL $1.011.473 Other Governmental Fund Debt General Obligation Note - First National Bank of Alachua, Florida on September 28, 1989, the City issued a $300,000 General Obligation Note to First National Bank of Alachua, Florida in return for $300,000 borrowed to , finance additional costs associated with the Gulf Breeze street construction and improvement projects. The note natures on September 9, 1990, with interest f payabic on the first working days of January, April, July and the maturity date. The City expects to refinance this debt at maturity. The proceeds of the proposed refinancing are pledged to repay the note. Any shortfall is-backed'by the full faith, credit, and taxing power of the City. The amount is classified as a short-term obligation in 'the Capital Project Fund. The fund will carry a deficit fund balance until the refinancing can be consummated. (Continued) 1
.---,,--,-------,.---,---------,__n,,-----,,----_ I NOTES TO FINANCIAL STATEMENTS l CITY OF ALACHUA. FLORIDA " (Continued) NOTE 5 - LONG-TERM AND OTHER DEBT (Continued) Proprietary Fund Types - Utility Refunding Revenue Bonds of 1986 On May 19, 1966, the City adopted a resolution to issue the Utilities Refunding . Revenue Bonds Series 1986. These bonds were issued pursuant to a multi-purpose plan including the advance refunding of certain of the City's utility refunding and revenue bonds. The 1986 Bonds were issued on a parity and rank equally as to lien on and source and security for payment from gross revenues and excise taxes as the Utility Revenue Bonds of 1979. Gross revenues and utilities service taxes are pledged as collateral for the revenue bonds which have a coupon rate-ranging-from 6.15% to 7.80%. The bond ordinance required the establishment of the following accounts: Revenue To collect electric,- water and _ sewer revenues. Operation and Maintenance To pay for cost of operation and mainte-nance of the utility system. Bond and Interest Sinking To accumulate sufficient monies to pay interest on the next semiannual' interest date (October 1 and April 1) and 'to pay principal coming due on serial bonds. Bond Amortization To accumulate monies for payment of amortization-installments coming due on term bonds. Reserve To accumulate monies to (1) : pay cost of l repairs . and replacements to utility 5 system;- (2) pay for improvements to the system; (3) pay bond principal and interest -when 'other accounts are insufficient. in accordance with the bond resolution, operating revenues from the utility l system must be disbursed in the following ordert. = A. To satisfy current debt service requirements of serial and term bonds; g B. to fund a reserve account equal to the average annual' bond service 3 requirement by the year 1990; C. to meet operating and maintenance expenses before depreciation; g D. for any other lawful purpose, g The $7,750,000 issue consists of $1,795,000 of serial bonds maturing from 1991 to 2000 and $5,995,000 of term bonds, $2,495,000 due in 2007 and $3,460,000 due in 2016, but which are subject to mandatory redemption in earlier years as tabulated - below at no premium. Certain of the Series 1986 serial bonds may be redeemed. prior to their maturity date, at the option of the City, subject to a call premium of one-half to two I percent (1/2% to 2%). Ia l (Continued)
~ NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA. FLORLDA (Continued) NOTE 5 - LONG-TERM AND OTHER DEBT-(Continued) { Proprietary Fund Types - Utility Refunding Revenue Bonds of 1986 (Conclrded) The following tabulation summarizes remaining interest and principal payment requirements of the 1986 issue FISCAL YEAR ENDED SEPTEMBER 30, PRINCIPAL INTEREST TOTAL . 1990 $ 0 $ 295,948 (1) $ 295,948 -! 1991 125,000 591,896 716,896-1992 140,000 584,206 724,206 1993 150,000 575,319 725,319-1994 160,000 565,419 725,419 ; 1995 170,000 554.459 724,459 1996 180,000 542,369 722,369 t 1997 195,000 529,249 724,249.. 1998 : 205,000 514,721 719,721 { 1999 225,000 499,141 724,141 [ 2000 245,000 481,985 '726.985 j 2001 255,000 463,242 718,242 2002 275,000 443,480 718,480 2003 300,000 422,168 {- 2004 722,168 i 320,000 398,917- 718,917 1 2005 350,000 374,118 724,118 2006 375,000 346,993 721,993 [ . 2007 620,000 317,930 937,930 2008 280,000 269,880 549,880 2009 300,000 248,040 548,040 2010 325,000 224,640 549,640 2011 350,000 199,290 549,290 j 2012 375,000 171,990 546,990. 2013 405,000 142,740 547,740 l 2014 440,000 111,150 551,150 ! 2015 475,000 76,830 -551,830 r 2016 510.000 39,780 549.780-L TOTALS $ 9.985.900 17 J.5% OA0Q $17.735.900
} (1) The semi-annual interest payment of $295,948 due October 1,-1989 was made September 30, 1989. i
_j ALLOCATED BETWEEN PROPRIETARY FUNDS ' t UNAMORTIZED CARRYING (. PAR DISCOUNT VALUE l Electric Fund $4,212,260 $ 86,489 $4,125,771 Sewer Fund 3.537,740 72,643 3,465,097 TOTAL { ,$7.750.000 $ MLJ)2 57.590.868 1 (Continued) I i...-.. .
I NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA. FLORIDA (Continued) NOTE 5 - LONG-TERM AND OTilER DEBT (Continued) Proprietary Fund Types - Utilities Revenue Bonds of 1979 On August 6, 1979 the City adopted a resolution to issue the Utilities Revenue Bonds of 1979. These bonds were issued on December 17, 1979, to partially finance the cost of construction of additions to the utility system. Het utility revenues and utilities service taxes are pledged as collateral for the revenue bonds which have a coupon rate of 5%. The lien on revenues by the 1979 bonds is equal to the Utilities Refunding Revenue Bonds of 1986. Amounts deposited in the revenue fund created by the bond resolution must be disbursed in-the following order A. To meet operation expenses. B. To satisfy debt service requirements. C. To fund a reserve account to be used for repairs, improvements and to satisfy debt service. The issue consists of $830,800 of Serial Bonds - $73,800 of which has been paid, and the remainder which matures as indicated in the following schedule: FISCAL YEAR ENDED PRINCIPAL-SEPTEMBER 30, AMOUNT 1990 $ 11,000 1991 12,000 1992 12,000 1993 13,000 - 1994 14,000 1995 - 1999 81,000 2000 2004 102,000 2005 - 2009 131,000 2010 - 2014 167,000 2015 - 2019 214,000 TOTAL }ER Summary of Principal Maturities Required-For Next Five Years E on Long-Term Debt E PRINCIPAL REQUIRED DURING FISCAL YEAR ENDED SEPTEMBER 30 1990 1991 1992 1993 1994 General Long-Term Debt $ 16,905 $ 16,943 $ 15,000 $ 15,000 $ 20,000 Chattel Mortgage - Enterprise Funds 4,445 4,888 0 0 0 Note Payable - Enterprise Funds 72,721 0 0 0 0 g Utility Refunding Revenue g Bonds of 1986 0 125,000 140,000 150,000 160,000 Utilities Revenue Bonds of 1979 11,000 12,000 12,000 13,000 14,000 g TOTAL }_195.071 }_158.831 $167.000 $178.000 $194.000 g (Continued)
NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FL0k1DA (Continued). 7 NOTE 5 - LONG-TERM AND OTHER DEBT (Concluded)- Proprietary Fund Types - Utilities Revenue Bonds of 1979 -(Concluded). The chattel mortgage in the enterprise funds is secured by computer equipment and payable in monthly installments of $429, including interest of 9.50%. The note payable is unsecured at a simple interest rate of 8.5% and due to First National Bank of Alachua, Florida, on June 13, 1990. ' Interest Interest paid or accrued amounted to $502 in the General Fund, $73,473 .in the ( Debt Service-Fund, and $633,892' in the Proprietary Fund Types for the fiscal year ended September 30, 1989. l NOTE 6 - RESTRICTED ASSETS ! I The balances of the restricted asset accounts in the Enterprise Funds at September 30, 1989, are as follows: _ ELECTRIC _ WATER SEWER TOTAL Revenue Bond Accounts: Construction Account $ 70,765 $ 70,765 i Sinking Fund 0 $ 25.248 $ 39,394 64,642 I Reserve Account 0 36,822 731,841 768,663 Bond Amortization Account 0 0 520,990 520,990 Interest Receivable 0 79 4,884 4,963 Special Assessment Accounts: Cash and Certificates of L Deposit 108,056 0 0 108,056 3 Customer Deposits 100,575 0 0 100,575 TOTAL [_ 279.396 1_h],142 $1.297.109 $ 1.638.654 i It is the City's policy to record all debt service cash accounts related to the ; 1986 issue in the Sewer Fund. The City has adequately funded the Debt ; Service accounts for the 1986 and 1979 bond issue and the Culf Breeze note. Special assessment accounts are recorded in both the General' Fund and Electric { Fund based on the required expenditure provisions of -the- original ordinance. The ' i Electric Fund's portion of the restricted special assessment accounts is offset by a deferred credit in the liability section of the balance sheet which will be amortized against plant-in-service as improvements are constructed. NOTE 7 - INTERFUND RECEIVABLES AND PAYABLES There were no interfund receivables or payables at September 30, 1989. Interfund transactions are normally recorded through a consolidated cash account instead of
'interfund receivables and payables.
(Continued)
I NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FLORIDA (Continued) NOTE 8 - FUND BALANCEA - RESERVES AND DESIGNATIONS Fund balances are reserved and designated within the governmental- fund types as g follows: g CAPITAL DEBT GENERAL PROJECT SERVICE RESERVED Roads and Streets $ 48,305 $ 15,462 Recreation 8,782 0 g Fire Service 42,450 0 g Police Service 5,856 0 Police Education 3,561 0 ' Prepaid Expenses 9,570 0 Debt Service 0 0 $36,861 TOTAL RESERVED FUND BALANCES $ 118. 5_2_4_ $ 15.462 138.861 DESIGNATED Police Operations t 33 $ 0 $ 0 Reserves carmark a portion of fund equity as (1) not available for appropriation or expenditure, or (2) legally restricted to a specific future use. Designations of fund equity represent. management's tentative spending plans.
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NOTE 9 - CHANGES IN FUND EQUITY - ENTERPRISE FUNDS Following is a summary of the changes in fund equity - enterprise funds for the year ended September.30, 1989: Fund Equity, October 1, 1988 $ 814,991 Contributed Capital - Water Fund 52,162 Contributed Capital - Sewer Fund 39,938 Net Income - All Enterprise Funds 96,381 Fund Equity, September 30, 1989 $1.003.472 NOTE 10 - EXCESS OF EXPENDITURES OVER BUDGET For excesses of actual expenditures over budgeted appropriations for . governmental fund types, please see Pages 5 and 6 of the financial statements. I r (Continued)
s l J NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA FLORIDA L (Continued) NOTE 11 - SEGMENT INFORMATION - PROPRIETARY FUND TYPES ELECTRIC WATER SEWER FUND FUND FUND { Operating Revenues Depreciation and Amortization
$ 3,109,761 163.142
$ 202,992 $
56,950 335,737 77,691 Operating Income (Loss) 576,905 ( 8,234) 88.765 Operating Transfers In (Out) ( 46,113) 0 0 Net Income (Loss) 208,932 ( 32,589) (- 79,962) Property, Plant and Equipment Additiono 367.149 70,593 52,900-Contributions 87,761 52,162 39,938 Net Working Capital 448,365 287,366 50,996 Total Assets 5,303,661 1,453,123 3,403,457 ! Bonds Payable - Long-Term Portion 4,125,771 746,000 3,465,097
.( . Total Equity 405,646 667,335 ( 69,509) .
i Total Retained Earnings (Deficit).. 405.646 3073639 (1,196,596) ( NOTE 12 - ELECTRIC POWER AGREEMENTS City of Cainesville The City entered into a wholesale electric service contract with the City of Gainesville, Florida, on January 21, 1987, for the purchase of the majority of the City's electric power requirements beginning January 6, 1988. The City constructed a 138 X 69 - 12.47Y/7.2kV substation to receive the power, which was. placed into operation on that date. A portion of the substation is owned by the City of Gainesville. The term of the contract-is five years, with options for additional annual extensions. Provisions in the contract allow for price adjustmer.cs for increases and decreases in the City of Gainesville's fuel and operating costs. Crystal River Unit #3 Participation Agreement l The City is a participant in an agreement with Florida Power Corporation which 1 was enteted into on July 31, 1975. Under terms of the agreement, the City l acquired an 0,0779% ownership interest and generation entitlement share in the nuclear steam electric generating unit. Participants are entitled to energy output of the unit based upon their respective generation entitlement share, j Florida Power Corporation has been appointed by the participants to act as their agent and his sole authority to manage, control, maintain and operate'the unit. Operating costs of the unit, in general, are shared _ in proportion to each. l generatica entitlement share on a monthly basis. Common and external facilities { ci the generating unit are solely owned by Florida Power Corporation and participants share in the operating and maintenance expenses of such facilities. ! Nuclear fuel payments and capital acquisition costs are required of participants j in advance. (Continued) ) 1 i 1
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i 5 NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, TLORIDA (Continued) . NOTE 12 - ELECTRIC POWER AGREEMENTS (Concluded) s Crystal River Unit #3 Participation Agreement (Concluded) ' The participation agreement provides for reversion of the ownership interest of - the unit to Florida Power Corporation upon retirement from service. The book 1 value of the investraent included in Utility Plant in Service amounts to $301,379 : as of September 30, 1989, excluding inventory. l The City's share of plant deconmissioning costs to be paid during the years 2015 : through 2022 is estimated at $137,553 in 1985 dollars. A provision is being amertized against net income using the straight-line method at $13.320 per year, gi g beginning March, 1985. The balance of this deferred credit including interest at September 30, 1989, is $68,076. Cash is being accumulated in an equal amount ; to provide for the funding of this deferred credit. St. Lucie No. 2 Power Purchase Agreement The City has negotiated a iong-t e ns agreement with Florida Power and Light . Corporation through the Florida Municipal Power Agency to purchase .3044 megawatts of generating capacity and a corresponding amount of energy monthly from the St. Lucie No. 2 nucicar generating plant. The plant became operational in 1984. NOTE 13 - DEFINED BENEFIT PENSION PLAN All City of Alachua full-time employees participate in the Florida State Retirement System (the " System"), a multiple-employer defined benefit public i:, retirement system. The payroll for employees covered by the System for the year ended September 30, 1989, was $353,683 for special risk employees and $602,994 , for all other employees; the City's total payroll was $977,859. ! All City full-time employees are eligible to participate in the System. Special risk employees who retire at or after age 55, with ten (10) years of creditable service and all other employees who retire at or af ter age 62, with ten (10) , years of creditable service are entitled to a retirement benefit, payable monthly for life, equal to the product of 1) average monthly compensation in the ' highest five years of creditable service; 2) creditable service during the appropriate period; and 3) the appropriate benefit percentage.. Benefits fully g vest ca reaching ten (10) years of. service. Vested employees may retire after 3 ' ten (10) years of creditable service and receive reduced retirement benefits. The System also provides death and dissbility benefits. Benefits are a established by Florida Statute, gi The City is required by Florida Statute to contribute 17.98% of special risk and 14.387 of all other employee earnings during calender year 1989 (15.35% and 13.3f.i. respectively for calendar year 1988). The contribution requirement for the year ended September 30, 1989, was $146,461; $61.258 for special risk employees and $85,203 for all other employees. I (Continued)
I I I NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA. FLORIDA (Continued) NOTE 13 - DEFINED BENEFIT PENSION PLAN (Concluded) l j The " pension benefit obligation" is a standaroited disclosure measure of the 5 present value of' pension benefits, adjusted for the effects of projected salary increases and step-rate benefits, estimated to be payable in the future as a resuh of employee service to date. The measure, which is the actuarial pres:nt I value of credited projected benefits, is intended to help users assess the System's funding status on a eoing-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons I among PERS and employees. The System does not make special measurements of assets and pension benefit obligation for individual employers. The pension benefit obligation at June 30, 1987, for the System as a whole, determined through an actuarial valuation performed as of that date, was $20.8 million.
'I The System's net assets available for. benefits on that date (valued at market) were $13.7 million, leaving an unfunded pension benefit obligation of $7.1 million. The City's 1989 contribution represented less than one percent (1%) of I total contributions required of all participating entities.
Ten-year historical trend information showing the System's progress in j accumulating sufficient assets to pay benefits when due is not presently 3 available. However, historical trend information commencing with 1986-87 is present in the System's June 30, 1987 annual financial report _ and will become more informative as data is developed and presented for each subsequent year. NOTE 14 - _ COMMITMENTS AND CONTINGENCIES I Securities Purchase
'In accordance with its bond resolutions, the City is party to n centract to purchase $575,000 of direct obligations of the United States (of which $535,000 3 has been purchased as of September 30, 1989) at a purchase price of 96-97% of g face value, through February 15, 1990. The following amounts are the minimal face amount of securities to be purchased:
FISCAL YEAR ENDED SEPTEMBER 30,
~
1990 $40,000 Other i The City has signed certain documents with Florida Municipal Power Agency relating to the St. Lucie Project that provide that if the agency defaults on certain bond payments, the City would be required to natisfy payment. The par amount of the outstanding bonds at September 30, 1989, was $321,675,000. The City's maximum contingent liability is $3.5 million. (Continued) Il ! NOTES TO FINANCIAL STATEMENTS l CITY OF ALACHUA, FLORIDA (Concluded) NOTE 14 - COMMITMENTS AND CONTINGENCIES (Concluded) i The City received a $75,000 award from the State of Florida Department of Natural Resources (DNR) during 1986 which was used toward the $150,000 purchase price of certain land and buildings lying within the City limits known as Rolling Green Acadamy. As part of the award agreement with DNR, the City has j agreed to construct or cause the construction of, certain outdoor recreation j facilities and improvements on the property by 1991 for estimated costs in j excess of the original award agreement. The City has also agreed to operate and l maintain the site and facilities for a minimum period of 25 years. The gI agreement provides for forfeiture of the award if these and other provisions are 3; not adhered to. ] 1 The City's sewer plant is currently operating near its maximum capacity. The 1 City is researching alternatives for additional capacity at a cost of l approximately $1,100,000. In addition, certain water system improvements have been committed to as part of a contract agreement with a major customer and are estimated to cost between $1,200,000 and $1,480,000. The City is researching funding alternatives for both these projects. I: J 4 l l I i I
1 I I I I I I )B I l .cc-m o -mms I LI
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I I
w CITY OF ALACllUA. TLORIDA COMBINING AND INDIVIDUAL FUND STATEMF.NTS {- These statements provide a more detailed view of the General Purpose Financial Statements. Combining statements are presented when there is more than one fund of a given fund type. Indtvidual fund statements are presented when there is only one fund of a given fund type. They are also necessary to present budgetary comparisons. ( l I l
+ BALANCE SHEETS GENERAL FUND SEPTEMBER 30, 1989 AND 1988 CITY OF ALACHUA. FLORIDA ASSETS - 1989 1988 Cash in Bank Including Certificates " of Deposit: Police Department Trust Fund $ 33 $ 37 Alachua Meadows Account 105,500 105,500 Federal Revtnue Sharing Account 0 0 Other 447,320 389,291 Receivables: Utility Taxes 11,101 6,982 - Tax Certificates 91,490 70.243 Accrued Intercut 1,720 1,830 Other 23,339 8.357 Due From other Covernments 20,685 20,419 Prepaid Enpenses 9.570 5.098 TOTAL ASSJ:IS __ff$.776 622.739 - - - LIABil tTIES a AND FUND BALANCE - LIABILITIl] Accounts Payable 254,704 76,687 Accrued ir.xpensen 20,379 Occupaticnal Licenses Collected in 31.072 Advancei 7,837 4.661 Deferred Revenues - Taxes 91.490 70,243 Deferred Revenues - Other 0 1.146 TOTAL LIAB%LITIES 374.410 183.809 FUND BALANO3 Reserved For Prepaid Expenses 9,570 5,096 Reserved f or Police Education 3,561 5,255 Reserved For Special Assessment Expenditures 105,393 97,803 Designated For Police Department Operations and Vests 33
< Undesignated 37 202.809 __ 330.737 TOTAL FUND BALANCE 321.366 438.930 TOTAL LIABILITIES AND FUND BALANCE $ 695.776 $ 622.739
m________ STATEMENT OF REVENUES - BUDGET AND ACTUAL l E GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 1989. WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30. 1988 CITY OF ALACHUA, FLok1DA 1989 1988 VAklANCE FAVORABLE BUt4ET ACTUAL (UNFAVORAB'.E) ACTUAL REVENUES Taxes Property Taxes $ 401,960 $ 414,882 $ 12,922 $ 381,709 g Franchise Taxes 11,500 18.055 6.555 11,074 g Utility Taxes 260,000 289,793 29,793 273,047 Total Taxes 673,460 722,7S0 49,270 665,870 Licenses and Permits Occupational Licenses 12,000 9,632 ( 2,368) 11.592 Building Permits 20,000 22,694 2,694 17.588 l Total Licenses and Permits 32,000 32.326 326 29.180 W Intergovernmental Statet Alcoholic Beverage License 7,500 5,283 ( 2,217) 6.096 Local Covernment Half-Cent Sales Tax 155,158 142,556 ( 12,602) 138,087 Mobile Home Licenses 5,000 5.873 873 5.397 State Revenue Sharing 128,022 126,220 ( 1,802) 123.481 Cigarette Tax 15,506 14,825 ( 681) 14,818 g Local Option Gas Tax 120,000 103.376 ( 16,624) 104.247 g Rebate on Municipal Vehicles 2,000 2,096 96 2.585 State Grants 73,724 59,502 ( 14.222) 6.355 Total Intergovernmental 506.910 459,731 ( 47.179) 401.066 Charg;i For Services Sanitatlon, including Penalties 17,500 24.669 7,169 15,779 Zoning Fees and Other 2,800 1.217 ( 1.583) 3.056 Total Charges For Services 20.300 25,886 5,586 18.835 Fines and Forfeitures court Fines 60,000 44.151 ( 15,849) 48.360 Miscellaneous Interest 50,000 72,220 22.220 33,469 Other Income (Expense) 7.500 12.810 5,310 (' 884) Total Miscellaneous 57.500 85.030 27,530 32.585 TOTAL REVENUES }L 3.9.,170 $1.369.851 $ 19.fM $1.195.896 I I
STATEMENT OF EXPENDITt'RES - EUDGET AND ACTUAL GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 1989. WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1988 J-l CITY OF ALACHUA. FLOklDA L 1989 1988 r VARIANCE FAVORABLE I EXPENDITURES BUDGET ACTUAL (UNFAVORABLE) ACTUAL-G2neral Government l Legislative B Personal Services $ 12.784 $ 13.212 $( 428) $ 10,908 operations 8,475 9,416 ( 941) 5,078 Capital Outlay i Total Legislative Executives 0 21,259, 0 22,628 ( 0 1,369) 15,986 0 Personal Services 34,404 32,936 1.468 30,591
;I Operations 9,347 7,892 1,455 10.587 Capital Outlay 5,000 5,410 ( 410) 585 Total Executive 48,751 46,238 2,513 41,763 Finance and Administration:
i Personal Services Operations 54,327 55,857 ( 1,530) 49.731 39,850 36,978 2.872 32,139-Capital Outlay 1,350 1,350 0 3,913 Total Finance and Administration 95.527 94,185 1,342 85.783 Legal Personal Services 0 0 0 928 Operations 37,620 36,842 37,466 I. Total Legal 37,620 36,842 778 778 38,394 Comprehensive Planning: 3 operations $8,859 38,602 20,257 14.287 l Other General Government: Operations 16,656 , 10,068 6,588 6,986 Total General Government 278.672 248,563 30.109 203.199 i Public Safety~ Law Entorcement Personal Services 570,092 574,455 ( 4,363) 475,300 Operations 103,940 125.368 ( 21,428) Capital Outlay 99.672 i 26,200 32,516 ( 6,316) 15,945 Total Law Enforcement 700,232 732,339 ( 32.107) ~~'590,917 I Fire Control Operations 101,200 101,562 ( 362) 103.471 Gapital Outlay 0 0 0 1,934 Total Fire Control 101.200 101,562 ( 362) 105,405 I Protective Inspections: 1 Operations 7,000 6,158 842 6.552 Other Publi?. Safety: Operations ~ 1,990 2.380 ( 390) 1,642 Total Public Safety 810,422 842,439 ( 32,017) 704,516-(Continued). I, I i STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL GENERAL FUND l i TOR THE YEAR ENDED SEPTEMBER 30, 1989, WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1988 CITY OF ALACHUA FLOkIDA E' g; (Concluded) ; 1989 1988
, f FAVORABLE ,
BUDGET ACTUAL (UNFAVORABLE) ACTUAL EXPENDITURES (Concluded) ' Transportation Personal Services $ 105,998 $ 98,416 -$ 7,582 $ 86,728
- Operations 87.700 86,156 1,544 73,936 Capital Outlay 20.067 21,959 ( 1,892) 584 '
Total Transportation 213,765 206,531 7,234 161,248 Physical Environment .. Personal Services 40,460 38,470 1,990 46,509 ; 3,097) ' Operations 13,306 16.403 ( 12,434 Capital Outlay 20,300 10,909 9,391 1,210 Total Phys.ical Environment 74,066 65,782 8,284 60,153 , Culture and Recreation Parks and Recreations , Personal Services 48,668 49,558 ( 890) 48,670 ; operations 27,554 23,541 4,013 22,623 i Capital Outlay 17,200 6,518 10,682 2,324 Total Parks and Recreation 93,422 " 79,617 13,805 73,617 g Libraries: 3 Personal Services 0 0 0 0 Operations 0 0 0 30 ' Total Librhries 0 0 0 30 ' Total Culture and Recreation 93,422 79,617 13',805 73,647 ! Debt Service l Principal Retirement 6,400 1,885 4,515 1,577 =- Interest Paid 2,200 502 1.698 627 i Total Debt Service 8,600 2,387 6.213 2,204 ) TOTAL EXPENDITURES $1.478.947 M4j@ $ 33.628 $1.204.967 I , l I l
I COMBINING BALANCE SHEETS SPECIAL REVENUE FUND - COMMUNITY DEVELOPMENT BLOCK GRANTS SEPTEMBER 30, 1989 AND 1988 CITY OF ALACHUA. Il0RIDA 1989 1988 CDBG 1 CDbG 11 TOTAL TOTAL Cash 8 0 $ 5.000 $ 5.000 $ 20.326 LIABILITIES AND FUND BALANCE LIABILITIES Accountr. Payable 0 0 0 15,065 Due to other Governments 0 0 0 B Deferred Revenues 0 5.000 5,000 261 5,000 TOTAL LIABILITIES 0 5.000 5,000 20.326 TOTAL LIABILITIES AND FUND BALANCE $ 0 $ 5.000 $ 5.000 $ 20.326 I 1 1 I I I I I
I COMBINING STATEMENTS OF REVEI'UES, EXPENDITURES AND CHANCES IN FUND BALANCE l SPECIAL REVENUE FUND - COMMUNITY DEVELOPMENT BLOCK GRAN1S W FOR THE YEAR ENDED SEPTEMBER 30, 1989 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1988 CITY OF ALACHUA, FLORIDA TOTALS CDBG I CDBG II 1989 1988
=
REVENUES Intergovernmental $ $1,441 $ $1.441 $ 433,292 Miscellaneous 14,030 14,030 0 TOTAL REVENUES S 0 65,471 65,471 433,292 , EXPENDITURES Physical Environment Water Systemt g Operating Expenses 0 2,902 2.902 596 g Capital Outlay 0 11,501 11,501 0 Total Water System 0 _14,403 14.403 596 Sewer Systemt l Operating Expenses 0 8,047 8,047 1,584 m Capital Outlay 0 31,891 31,891 0 Total Sewer System 0 39,938 39,938 1,584 Total physical Environment 0 54,341 54.341 2,180 Transportation Roads and Streetst l Operating Expenses 0 2.242 2,242 459 = Cap?tal Outlay 0 8,888 8,888 0 Total Transportation 0 11,130 11,130 459 Economic Environment - Housing Rehabilitation g Operating Expenses 0 0 0 385,072 g Capital Outlay 0 0 0 45,581 Total Economic Environment - Housing Rehabilitation 0 0 0 430.653 - (TOTAL EXPENDITURES) 0 (65,471) ( 65,471) (433,292) EXCESS OF REVENUES OVER EXPENDITURES 0 0 0 0 FUND BALANCE, BEGINNING OF YEAR 0 0 0 0 FUND BALANCE, END OF YEAR $_ 0 $ 0 $ 0 _$ 0 I I g
I STATEMENT OF REVENUES, EXPENDITURES AND CHANGES 1N FUND BALANCE l BUDGET AND ACTUAL I S?EC1AL REVENUE FUND - COMMUNITY DEVELOPMENT BLOCK GRANT 1 FOR THE YEAR ENDED SEPTEMBER 30, 1989. WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YE?k ENDED SEPTEMBER 30, 1988 CITY OF ALACHUA, e'L0k1DA 1989 1988 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) ACTUAL REVENUES $ 0 $ 0 $ 0 $ 430,653 . EXPENDITURES Economic EnvironmentI
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Demolitions / Relocation 0 0 0 110.419 : Temporary Kelocation l Rehabilitation 0 0 0 0 20.364 " 0 0 177,077 g_ Capital Acquisition 0 0 0 45,581 I Administration .. 0 0 0 71,212 (TOTAL EXPENDITURES) 0 0 0 (430,653) I l EXCESS OF REVENUES OVER EXPEND 1TURES 0 0 0 0 l ,UNe ,AtANce, ,Ee1NN1NO e, TEAR 0 0 0 0 FUND BALANCE, END OF YEAR L 0 $ 0 0
$_ $ 0 g ,
i I I
I STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE l BUDGET AND ACTUAL W SPECIAL REVENUE FUND - COMMUNITY DEVELOPMENT BLOCK CRANT 11 FOR THE YEAR ENDED SEPTEMBER 30. 1989. WITH g COMPARATIVE ACTUAL AMOUNTS F0k THE YEAR ENDED SEPTEMBER 30, 1988 g CITY OF ALACHUA. FLORIDA 1989 1988 I VAk1ANCE l FAVORABLE E BUDGET ACTUAL (UNFAVORABLE) ACTUAL REVENUES Intergovernmental $ 500,000 $ 51,441 $( 448,559) $ 0 Miscellaneous 0 14,030 14,030 0 TOTAL REVENUES 500,000 65,471 ( 434,529) O EXPENDITURES Street improvements 45,150 5,228 39,922 0 l m Water System Extensions and Improvements 85.229 9,933 75.296 0 Sewer System Extensions and Improvements 267,021 31,891 235,130 0 Fire Hydrants 15,300 1,568 13,732 0 Flood and Drainage 32,300 3,660 28,640 0 Administration 55.000 13,191 41,809 0 (TOTAL EXPENDITURES) (500,000) ( 65,471) 434,529 0 EXCESS OF REVENUES OVER EXPENDITURES 0 0 0 0 I FUND BALANCE, !!EGINNING OF YEAR 0 0 0 0 FUND BALANCE, END OF YEAR a 0 $ 0 $ 0 J, _0 I I I I I
-n-g
STATEMENT OF RE7ENUES, EXPENDITURES AND CHANGES IN FUND BALANCE [ BUDGET AND ACTUAL ( CAPITAL PROJECT FUND,- GULF hkEEZE LOAN PROGRAM FOR THE YEAR ENDED SEPTEMBER 30, 1989, WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1988 CITY OF ALACHUA, FLORIDA 1989 1988 VARLANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) ACTUAL REVENUES Interest $ 9,000 $ 33,624 $ 24,624 8 49,632 EXPENDITURES Conctruction Contracts 500,000 794,199 ( 294,199) 254,757 Engineering 60,000 120,001 ( 60,001) Other 130.874 0 14,840 ( 14,840) 1,000 (TOTAL EXPENDITURES) ( 560,000) ~l 929,040) ( 369,040) ~T~I86,631) EXCESS (DEFICIENCY) 0F REVENUES OVER (UNDER) EXPENDITURES ( $51,000) ( 895.416) ( 344,416) ( 336,999) OTHER FINANCING SOURCES Note Proceeds 0 300,000 300,000 0, EXCESS (DEFICIENCY) 0F REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES ( 551,000) ( $95.416) ( 44,416) ( 336,999) FUND BALANCE, BEGINNING OF YEAR 610,878 610,878 0 947,877 FUND BALANCE, END OF YEAR } $9n)) [ 15. 4M $( 44.4jk) $ 610.SJJ COMBINING BALANCE SHEET PROPRIETARY FUNDS SEPTEMBEk 30, 1989, WITH COMPARATIVE TOTALS 10h THE YEAR ENDED SEPTEMBER 30, 1988 CITY OF ALACHUA. FLORIDA ASSETS CURRENT ASSETS Cash and Time Depositst CR-3 Decommissioning Account Impact Fee rund g Other g Receivables (Net of A11ovence For Unco 11ectibles As Parenthetically Indicated): Accounts ($13,725) . Sewer Assessments Other Interest and Penalties - Other Receivables Inventory. At Cost l Prepaid Expenses a Unbilled Revenue TOTAL CURRENT ASSETS PESTRICTED ASSETS Revenue Bond Accounts: Construction Account: Cash and Time Deposits Sinking Fund Reserve Account g Bond Amortization Account g Interest Receivable Special Assessment Accountst g Cash and Time Deposits g Assessments Receivable (Net of Allowance For Unco 11ectibles of $4.934) Customer Deposits TOTAL RESTRICTED ASSETS PROPERTY PLANT AND EQUIPMENT Utility Plant in Service (Accumulated Depreciation) Construction-In-Progress TOTAL PROPERTY, PLANT AND EQUIPMENT - Cost Less Depreciation OTHER ASSETS Unamortized Bond Issue Costs TOTAL ASSETS I I
-39 y
4
I I TOTALS E1.ECTRIC WATER SEVER 1989 1988
$ 68,076 $ 68.076 $ 51,405 I 41,921 92,869 $ 278,907 $ $6,399 41,921 428,175 41,921 357,932 409,377 409,377 363,875 lI 212 1,069 1,069 212 1,134 2,249 5,558 5,558 9.369 232,706
'I 12,384 16,925 249,631 12,384 185.961 12.309 78,705 78,705 59.668 941,808 295,832 57,468 1,295,108 1,085.823 70,765 70,765 162,067 25,248 39,394 64,642 218,389 36,622 731,841 768,663 792.767 520,990 520,990 442,722 L 79 4,884 4,963 16,272 108.056 108.056 93,442 F 0 5,383 100.575 100.575 94,783 279,396 62,149 1.297.109 1.638.654 1,825.825 V L 4.798,136 1,740,465 2,775,499 9,314.100 9,109.176 y ( 859,095) ( 697,486) ( 865,881) (2.422.462) (2,147,709)
- 3,939,041 1,042.979 1,909,618 6,891,638 6,961,467 104,622 52.163 39,938 196,723 12.006 4,043.663 1,095,142 1,949.556 7,088,361 6,973,473 38.794 0 99,324 138.118 143.330
! $ 5.303.661 $ 1.453.,M3 $3.403.D1 $10.160.24l 110.0J8.451 e e
-(Continued) l
I COMBINING BALANCE SHEET l PROPRIETARY FUNDS = SEPTEMBER 30, 1989, WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30., 1988 g CITY OF ALACHUA. FLORIDA g (Concluded) LIABILITIES AND FUND EQUITY CURRENT LIABILITIES, PAYABLE FROM CURRENT ASSETS Accounts Payable Other Accrued Expenses Power Costs Recovered in Advance Deferred Credits and Developer Deposits Note Payable - First National Bank Current Portion of Long-Term Liabilities a TOTAL CURRENT LIABILITIES, PAYABLE FROM CURRENT ASSETS g CURRENT LIABILITIES, PAYABLE FROM RESTRICTED ASSETS Construction Account Accounts Payable Accrued Interest Bonds Payable - Current Portion Customer Deposits TOTAL CURRENT LIABILITIES, PAYABLE FROM RESTRICTED ASSETS LONG-TERM LIABILITIES I Chattel Mortgage Payable, Less Current Portion of $4,090 g Utilities Revenue Bonds of 1979. Less Current Portion of $11,000 g Utility Refunding Revenue Bonds of 1986 Deferred Credit - CR-3 Decommissioning Costs Deferred Contributions - Special Assessments TOTAL LONG-TERM LIABILITIES TOTAL LIABILITIES FUND EQUITY Contributionst Customers EDA and HUD Farmers Home Administration Total Contributions Retained Earningst Reserved For Debt Service and Contingencies Unreserved Total Retained Earnings (Deficit) g TOTAL FUND EQUITY g TOTAL LIABILITIES AND FUND EQUITY
-.e- g
N J i L' ( ELECTRIC WATER SEWER 1989 TOTALS 1988
$ 176.856 $ 176,8,56 $ 172,071
(- 42,092 $ 6,338 $ 5,304 53,734 41,619
',539 66,539 136,539 133,481 960 134,441 147,974 72,721
( 1,754 1,168 1,168 72,721 0 4,090 4,044 493,443 8,466 6,472 508,381 502,247 (. f 0 91,302 18,925 18,925 19,225 11,000 11,000 11,000 100,575 100,575 { 94,783 100,575 29,925. _ _ 0 130,500 216.310 2,094 1,397 1,397 4,888 746,000 9.333 746,000 758,000 4,125,771 3,465,097 68,076 7.590.868 7.579,034 68,076 47,730 108,056 108,056 4,303,997 100,806 747.397 _,_3,466,494 8,517,888 8,494,903 4,898,015 785,788 3,472,966 9,156,769 9,213.460 74,533 884,325 958,858 38,263 921.100 62.362 100,625 46,283 246,900 180,400 427,300 427,300 0 359.696 1,127,087 1,486,783 1,394.683 36,822 1,297.109 1,333,931 1,443,861 405,646 270,817 (2,493,705) 405,646 jl,817,242) (2,023,553) 307,639 (1,196,596) J -483,311) ( 579,692) 405,646 667,335 ( 69,509) 1,003,472 814,991
,$_5, 303. 661 }l.453.123 $ 3.403.457 }}QalfD.241 ((pgg28.451
- f
i i COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS h PROPRIETARY TUNDS . FOR THE YEAR ENDED SEPTEMBER 30, 1989, WITH ! COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1988 g CITY OF ALACHUA, FLORIDA gi i h OPERATING REVENUES OPERATING EXPENSES g Power Production Expenses gi Nuclear Power Generation and Transmission j Purchased Power and Other i Customer Accounts ; Depreciation !
+
Warehousing Distribution and Collection General and Administrative l Taxes 3
- Treatment (TOTAL OPERATING EXPENSES) ,
OPERATING INCOME NONOPERATING REVENUES (EXPENSES) Interest income ' (Interest and Fiscal Charges) (Amortization of Bond Issue Costa) Miscellaneous (Expense) Income g> TOTAL NONOPERATING REVENUES (EXPENSES) gj INCOME BEFORE OPERATING TRANSFERS OPERATING TRANSFERS (OUT) ; NET INCOME I RETAINED EARNINGS (DEFICIT), BECINNING OF YEAR RETAINED EARNINGS (DEFICIT), END OF YEAR 1 l-j l l
I l B h l I TOTALS ELECTRIC WATER SEWER 1989 1988
$ 3.109,767 $ 202,992 4 335,737 $ 3,648,496 $ 3,487,537 1
111.997 0 0 111.997 179,641 1,961.314 0 0 1,961.314 1,889.498 1 38,891 24,013 22,803 155,246 85.707 90.522 56.950 68,541 280.737 233,767 141,478 41,493 32,065 215.036 203.171 I 81,101 42,835 0 43,109 0 45,661 37,681 0 161,891 42,835 193,107 41,329 85.882 131,543 129,386 _(2,532,862) ( 211.226) ( 246,972) ( 2,991,060) (2,960,421)
$76,905 ( 8,234) 88,765 657,436 527,116 I
9,149 14,130 1*( ( 330,506) 1,464) ( 38,485) 0 110,647 ( 276,735) 3,748) ( 133,926 645,726) 130.046 ( $65,551) ( ( 5.212) ( 7.656) 961 0 1.109 I( 321,860) ( 24,355) ( 168,727) ( 2,070 514,942) ( 442,177) 984 255,045 ( 32,589) ( 79,962) '142,494 84,939 ( 46,113) 0 0 46,113) ( ( 46.113) 208,932 ( 32,589) ( 79.962) 96.381 38,826 196,714 340,228 (1,116,634) ( 579.692) ( 618,518)
$ 405.646 $ 307.639 $ (1.196_. 596) $( 483.311) $( 579.692)
i COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 1989, WITH ; COMPARATIVE 101ALS FOR THE YEAR ENDED SEPTEMBER 30, 1988 , CITY OF ALACHUA. FLORIDA j i l SOURCE OF WORKING CAPITAL Net income (Loss) Items Not Requiring Outlay of Working Capital ; Depreciation g' Amortization of Lond Issue Costs 3 Amurtization of Bond Discount Write-Off of Construction-In Progress i Working Capital Provided From (Applied to) Operations increase in Deferred Credit - Special Assessments Plant Salvage From Retirements Land Sales Increase in Contributions Increase in Deferred Credit - CR-3 Decommissioning Cost , Decrease (Increase) in Restricted Assets TOTAL SOURCE OF WORKING CAPITAL ,, USE OF WORKING CAPITAL Utility Plant in Service Additions , Increase in Construction-in-Progress recrease in Long-Term Liabilities' Reclassified as Current or Ps,- ; Plant Removal Costs Decrease (Increase) in Current Liabr ,1es Payable From Restricted Assets ' (TOTAL USE OF WORKING CAPITAL) , INCREASE IN WORKING CAPITAL (BELOW) { CHANGES IN WORKING CAPITAL BY COMPONENT l, current Assets - Increase (Decrease): W Cash and Time Deposits Receivables g Inventory g Prepaid Expenses ' Unbilled Revenue ' Current Liabilities - Decrease (Increase): Accounts Payable Other Accrued. Expenses Power Costs Recovered in Advance l Deferred Credits and Developer Deposits W Note Payable - First National Bank Current Portion of Long-Term Debt INCREASE IN WORKING CAPITAL (AB0VE) t
I i I TOTALS ELECTRIC WATER SEWER 1989 1988
$ 208,932 $( 32,589) $( 79,962) $ 96,381 38,826 I 155,246
'1,464 6,432 56,950 0
0 68.541 3.748 5,402 280,737 5.212 11.834 233.767 7,656 10.061 'g l 0 0 0 0 18,466 'g 372,074 24,361 ( 2,271) 394.164 308,776 7.250 0 0 7,250 13,552 24,485 0- 0 I 87,761 20,346 O 52.162 O 0 5,258 39,938 0 24.485 5,258 179,861 13.313 2.083 7,000 20.346 13,320 I 76,279 588.195 ( 3,370) 73,153 114,262 157,187 187,171 818,535 1,939,487 2,297,531 274,533 18,430 12,962 305,925 '1,472,194 92,616 52.163 39,938 184,717 12,006 I 1,905 22,487 85,510 13.270 0 300 1,270 0 0 16,445
-22,487 85,810 15.044 10,366 668,040
,( 477,051) ( B4,163) $4,170) 615,384)
( ( (2,177,650) r_LlhJ.4_4 ._(_lb 910) 103.011. 203.151 119.831 I ( 17.030) ( 5.034) 108,978 86,914 172,025 46,374 ( 1,200) ( 5.583) 39,589 66,853 ( 3,183) 6.563 0 63,670 6,738 75 0 0 75 3.361 19.037 0 0 19.037 ( 14,399) ( 4.785) 0 0 ( 4.785) ( 1,129) ( 10,142) ( 1,610) ( 363) 12,115) ( ( 11.516) 70,000 0 0 70,000 13,503 ( 68,765) 30 0 13,533 27,366 ( 72,721) 0 0 72,721) ( 0 ( 20) ( 13) ( 13) ( 46) ( 363)
$ 111.J44 _$ ( 11.010) $ 103.01_7, $ 203.151 W 4
h 4
F 9 \ !I L UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA lg 1 1 , i il l ll l l il l ll l il ! l l I l l l 4 5 ! l 8 l l l l i 1 Financial Statements l I and l ll Auditor's Report l l September 30,1989 and 1988 ' lR
I ! I I i i ( I -- cITr ar um menom mom, ru: Rum ; i i I casmIskruar cuMer 1 l 4 l
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I Utilities O m mission Director i l I Professional Consultants of Utilities Camission Attorney I : I Electric Department Engineerirg Department Finance Department Water and. Pollution Control t I i Department ; 9 I b 4
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iv + e
w e I UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA I CERTIFICATE OF ACHIEVEMENT for the year ended September 30, 1988 The Covernment Finance Officers Association of the United States and Canada (CFOA) awarded a Certificate of Achievenient g for Excellence in Financial Reporting to the Utilities Commission. City of New Smyrna Beach, Florida, for its Comprehensive Annual Financial Report for the fiscal year ended September 30, 1988. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. Management believes that this report continues to conform to certificate of Achievement Program standards.
I I I Certificate of I Achievement I f r Excellence in Financial I Reporting Presented to E Utilities Commission City of P New Smyrna Beach, Florida ! For its Component Unit Financial R'eport l for the Fiscal Year Ended September 30,1988 I A Certificate of Achicvement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to I govemment units and public employee retirement systems whose component unit financial reports (CUFR's) achieve the highest I standards in govemment accounting and financial reporting, aneiums i g,, l President Executive Director v
I w I LETTER OF TRANSMITTAL I I I 1 I I I I I I l l I
F e , I atuarmaea UTILITIES COMMISSION I "" Jeest MeKat - CITY OF NEW SMYMNA BEACH 110RIDA 11LCTRIC WATLR POLLUTION CONTHOt Itat Olhte Box $19 120 Sam 6 Ave. I ' N0HAnDc E RN wett-WILUAM R. F AY New $mprna Beach,llorida 32070 0519 (904)427 1361 Aest. teorgiery-Transwer Hrywano A.PArtow December 1, 1989 commmemaer I To the Chairman and Members cf the Utilities Commission City of New Smyrna Beach, Florida I The Component Unit Financial Report of the Utilities Commission, City of New Smyrna Beach, Florida, for the fiscal years ended September 30, 1989 and 1988, is hereby submitted. Responsibility for both the accuracy of the presented I data and the completeness and fairness of the presentation, including all disclosures, rests with the Utilities Commission. To the best of our knowledge and belief, the enclosed data are accurate in all material aspects and are reported in a manner designed to present fairly the financial position I and results of operations of the Utilities Commission. All disclosures necessary to enable the reader to gain the maximum understanding of the Utilities Commission's financial affairs have been included. This financial report is presented in four sections: introductory, financial, statistical, and compliance (Auditor Ceneral of the State of Florida), The introductory section includes this transmittal letter, the Utilities I Commission's organizational chart, and a list of principal officials. The financial section includes the basic financial statements and the independent auditors' report on the financial statements. The statistical section I includes selected financial and demographic information, generally presented on a multi year basis, and selected five year historical financial information. , The Utilities Commission is required to be audited in accordance with Chapter 10 500, Rules of the Auditor General of the State of Florida. Information related to this audit, findings and recommendations, and auditors' reports on I the internal control structure and compliances with applicable laws and regulations, are included in the compliance section of this report. REPORTING ENTITY AND SERVICES PROVIDED The funds and entities related to the operation of the Utilities Commission I which are included in these financial statements are a component unit of the City of New Smyrna Beach, Florida, and an integral part of the City's reporting entity. The Component Unit Financial Report of the Utilities (
'I-- Commission is issued separately to provide a comprehensive financial: reporting summary and presentation to the Utilities Commission and its revenue certifi.cate holders.
I . 4
To the Chairman and Members
,of the Utilities Commission i
City _'of New Smyrna Beach, Florida 1 December ~1, 1989 l 1Page 2 ' Audited. financial statements of the City of New Smyrna Beach, Florida, are : available upon request from the City of New Smyrna Beach, 210 Sams Avenue, New. . Smyrna Beach, Florida, 32168. 7 (
- lc The Utilities Commission, City of-New Smyrna Beach,' Florida, .provides.a full" range- of electric, water and pollution control services to-its customers both 5;
'inside and outside the city limits. These activities are fully accounted for
- in'this-financial report._ j ECONOMIC CONDITION AND OUTLOOK The_ central Atlantic coast of Florida, in which the Utilities Commission is . "[
Iccated,Lranks in the top 25 fastest growing metropolitan areas'in the . country. For the period from 1980'to 1987, Volusia County, Florida, ) experienced a 27.9% rate of population growth as compared to the statewide j rate of 23.6%.and the national rate of 8.0%. The economic condition and outlook of the Utilities Commission have continually improved during the past several years due in.large to the controlled. development of residential and commercial properties which in turn has increased the Commission's quality customer base. In addition, substantial increases.in the-local tourism, light : manufacturing, and servicerelated business industries have had a positive ( effect on the area's employment statistics. Thn community' currently has a t i 4.5% unemployment rate as-compared to a statewide rate -of 5.0%- and a national-o average of 5.5%'(1988 annual' average). l Based on current projections, this trend is expected to continue through the } end of the century. While having a positive-impact, thisLgrowth also presents significant challenges for the Commission. If the_present high level of services-is to be maintained, the Utilities Commission, in the: future, will need ~ to explore new methoda of obtaining financial' resources to continue to provide the desired utility capacity.to its growing customer base. MAJOR INITIATIVES i V .
.. t The Commission plans to issue $15 million Utilities System Revenue i
Certificates, Series 1990, during January, 1990. The 1990 Certificates have - i been_ validated and issuance thereof approved by the City Commission. The i proceeds of.the certificates, together with other available funds, will be used to finance the cost of improvements, extensions and additions to the Commission's electric, water, and pollution control systems.
- The Commission has established a Five Year Capital Improvement Plan for,the~ s period from October 1, 1989 through September 30, 1994. The capital
. expenditures of this plan are in addition to the annual capital-requirements 3 1
for routine extensions of existing utility facilities to serve new customers.
?
The Commtssion plans to finance the Plan from the proceeds-of the_above described tevenue certificates, along with an estimated $15 million of t i vii l
I To the Chairman and Me abers l I of the Utilities Commission City of New Smyrna Beach, Florida December.1, 1989 1 I Page 3 additional revenue certificates in 1993, along with its annual revenues and connection fees. Significant system: improvements to be financed from the issuance of revenue certificates in 1990 and 1993 will consist of the following: I. o A new 30 MVA electric substation located in the northern part of the
.I Commission's electric service area; II~
o Approximately 11 miles of 115 kV electric transmission line ~11nking' the Commission's Smyrna substation to the-Florida Power Corporation's eastern service territory boundary; o Expansion of a water treatment plant in conjunction with the scheduled
.g expansion of the Commission's well field areas, y 3 o ('
Construction of a treated water transmission line-
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- - o Expansion and upgrading of existing treated water distribution lines; -
o Development and construction of a phased water reuse system which consists of tertiary. treatment of the wastewater treatment plant effluent along with
'I pumping facilities and transmission lines to provide irrigation service to prospective customers; and 1
-j o Pollution control facilities improvements consisting.of the construction of a small pollution control treatment plant, construction of wastewater collection lines and a wastewater pumping station, and the installation of l a computerized wastewater telemetry system. j In addition to the improvements identified above, the Ccamission also plans to t q
refund an existing obligation payable to the Florida Municipal Power Agency (FMPA). Based on the repayment schedule, the October 1, 1993' outstanding balance on the loan will be $2.8 million. The proceeds of this loan were i originally used to finance utility relocations resulting from a state highway. proj ect. ' l FINANCIAL INFORMATION Management of the Commission is responsible for establishing and maintaining ; an internal control structure designed to ensure that the assets of the i Commission are protected from loss, thef t or misuse and to ensure that I- adequate accounting data is compiled to allow for the preparation of financial j statements in conformity with generally accepted accounting principles. The ' internal control structure is designed to provide reasonable, but not absolute, assurance that .these objectives are met. The concept of reasonable , assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits ; requires estimates and judgements by management. -
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To the Chairman and Members I of-the Utilities Commission City of New Smyrna Beach, Florida December 1, 1989 Page 4 Budgeting Controls The Utilities Commission maintains an integrated system of budgetary controls. The objective of these budgetary controls is ' to ensure compliance with legal-- provisions embodied in the approved annual budget. The operating activities J of the electric, water, and pollution control systems are included ~in the annual budget. The level of budgetary control (that-is, the IcVel at which expenditures cannot legally exceed the appropriated amount) is established by g- , function and activity within each individual operating system. The Commission' g] also maintains'a separate encumbrance accounting system as one technique of- - 1 accomplishing budgetary control. This system is used exclusively to. maintain : budgetary control and is not utilized for purposes of presenting financial statements prepared in accordance with generally accepted accounting principles. As is demonstrated by the financial statements and schedules in the financial section of this report, the Utilities Commission continues to meet its. responsibility for sound financial management, i Utility Operations -{ 1 i In compliance with Resolution No. 16-75, the-electric, water and pollution control systems are accounted for as a single enterprise: fund. As of: l{! 3 September 30, 1989, the Utilities Commission served 18,045 electric customers, j 9,509 water customers and 7,556 sewer customers.- Service totals for"the last ; i five years are summarized below:
~ Fiscal Electric- Water Sewer !
legI Accounts? Accounts Accounts'- 1985 ................ 12,468 8,122 6,539 l 1986 ................ 12,997 8,494 6,797 g3 1987 ................ -17,025 8,828 7,036 1988 ................ 17,440' '9,115 7,289 3l: 1989 ................ 18,045 .9,509' 7,556- i
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1 The current year's operating revenues from the combined utilities systems ! totaled $26,416,607, an increase of 8.08% over last year's-$24,442,765. The ! increase was caused by general economic growth throughout the year and- from an approximately 24% increase in pollution control rates that went into effect on i October 1, 1988. The amount of revenue from various sources and the increases g! over last year are shown in the following tabulation: .g{ 4 ix ;
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I To tha Chairman and Mambers of the Utilities Commission I City of New Smyrna Beach, Florida December 1, 1989 Page 5 Increase Amount Percent Over 1980 Ooeratine Revenue Source (000's) of Total (000'4). Electric system ... .... ... ...... . ... $ 20,842 78.89% $ 1,374 I Water system ... ............ ...... .... Pollution control system .. ............ 3,185 2.390 12.06 9.05 134 466 TOTALS .... . ... ................. $ 26,417 100.00% $ 1,974 The current year's operating expanses from the combined utilities system I totaled $24,494,675, an increase ot' 7.13% over last year's adjusted amount of
$22,865,150. Increases in the levels of expenses for the individual systems over the preceding year are shown in the following tabulation:
Increase Amount Percent Over 1988 Operatine Expenses by Function (000's) of Total (000's) Electric system . . . ..... . ... $ 19,640 80.18% $ 1,413 Water system .. . ... .. .. .... ... 2,509 10.24 120 Pollution control system .. . . . 2.346 9.58 97 TOTALS $ 24,495
. . .. . . . .. . . . . 100.00% $ 1,630 I- Debt Administration I The revenue certificate debt coverage ratio is a useful indicator of the Utilities Commission't debt position. The current year's revenue certificate coverage is 2.26 times and is summarized in the following tabulation:
Operating revenues .. . . .. . $ 26,416,607 Interest and other income (excluding gain on disposals of $6,373) I Connection fees Assessment collections 1,008,728 806,571 69.750 REVENUES PER CERTIFICATE RESOLUTION .
$ 28,301,656 Cost of Operation and Maintenance (net of depreciation and required payments to the City) . . . .
. ... . 20.693.352 NET REVENUES PER CERTIFICATE RESOLUTION I
$ 7,608,304 Annual debt service requirement $ 3,362,110 COVERAGE RATIO . .
2.26 Times ) I * {
To the Chairman and Members of the Utilities Commission City of New Smyrna Beach, Florida December 1, 1989 Page 6 The Commission's revenue certificate coverage ratio for each of the last five fiscal years is presented in Table XII of the accompanying financial report. . As of September 30, 1989, the Utilities Commission had outstanding $37,430.000 of revenue certificates payable. All of these obligations are secured-by a first lien on and a pledge of the net revenues of the system. Also during the year, the Commission made draws on a construction-loan- g; agreement with the Florida Municipal Power Agency, as agent for the Initial g Pooled Loan Project' in the aggregate amount of $1,026,183. The proceeds from j the loan have been used to finance the cost 'of relocat$ng u*.ility linss withiu the City as a result of the construction-of a new high rise bridge by the Florida Department of Transportation. As of September 30, 1989, the balance- ! outstanding on the note totaled $1,771,744 The Commission has continued to maintain the same ratings on their outstanding . revenue certificates,-which are as follows: [ Moody's Standard & Poor's Utilities System Revenue Refunding and ! Improvement Certificates, Series 1978 .... A BBB+ l Utilities System Revenue Improvement Certificates. Series 1986 ................. A AAA'(FCIC Insured) l3 Utilities System Refunding Revenue ga I Certificates, Series 1987 ................. A AAA (AMBAC~ Insured) f The debt service requirements on these obligations are detailed in Note 6 to i the financial statements. Cash Management ' 1 Cash temporarily idle during the year was invested through the use of a g competitive bid procedure in short term time deposits and medium short-term investments. Shorter investment periods were utilized by the Utilities .g! ; Commission due to the rapid changes and uncertainties of interest rates experienced during the fiscal year. The amount of interest earned during the year was $818,148. l The Commission's investment policy is to minimize credit and market risks g1 e while maintainirg a corpetitive yield on its portfolio. Accordingly, deposits were either insured by federal depository insurance or collateralized in g( i accordance with the Florida Security for Public Deposits Act (the "Act"). All ; collateral on deposits was held either by the Commission, or by the State-of l Florida in accordance with the applicable provisions of-the Act. All of.the Commission's investments held at September 30, 1989, are classified in the i xi -
.To the Chairman and Members-of the' Utilities Commission City of New Smyrna Beach, Florida December 1, 1989 Page 7 B.
category of lowest credit risk (backed exclusively by the full faith and credit of the United States governmend as defined by the Governmental ~ B.. Accounting Standards Board. OTHER INFORMATIQH Independent Audit I Resolution Number 28 78 and other local and state statutes require an annual audit of the books of account, financial records'and transactions of all. administrative departments of the Utilitics Ccruissian by'an indopandout certified public accountant selected by the Utilities Commission. The ! accounting firm of Brent Millikan & Co., P.A., Certified Public Accountants, j G was selected by the Commission to satisfy this requirement. Their independent- l auditors' report on the financial. statements and' schedules.of-the. Commission has been included in the financial section'this report. ; j Awards - C4etificate of Achievement l The Government Finance Officers Association (GFOA) awarded a Certificate of ! Achievement for Excellence in Financial Reporting to the Utilities Commission, I City of New Smyrna Beach, Florida, for its component unit financial report for the fiscal year ended September 30,'1988. We are also quite proud of the fact that we have been awarded with this Certificate for the eleventh s I consecutive yaar. j In order to be awarded a Certificate of Achievement, the Commission must ' publish an easily readable and efficiently organized component unit annual financial ret ort, whose contents conform to program standards. Such reports I- must satisfy both. generally accepted accounting principles and applicable I legal requiraents. j A Certificate of Achievement is valid for a period of one year only. We believe our current-report continues to conform to Certificate of Achievement i Program requirements, and we are submitting it to GFOA to determine its ' eligibility for another certificate. Acknowledgments The preparation of this report on a timely. basis could not have been accomplished without the efficient and dedicated services of the entire staff of the Finance Department. Each member of the department has our' sincere appreciation for the contributions made in the prg nration of this report. xii
j i To the Chairman and Members I of the. Utilities Commission City of. New Smyrna Beach,' Florida December 1, 1989 Page 8 We would also like to thank the members of the Utilities Commission for their a interest,' support, and leadership-in planning and conducting the financial operations of the Utilities Commission-in a most responsible and progressive- - g1 . manner. Respectfully submitted,, .!
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l o. R. RonaldLHagen r O - Valois Paga ,.CPA' D! rector:of Utilitics Controllor 4
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Ile s
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I: Bi g 1 E)
I I . I I ' FINANCIAL SECTION This section is composed of the following three parts: 1 INDEPENDENT AUDITORS' REPORT { ' + CENERAL PURPOSE FINANCIAL STATEMENTS , i SUPPLEMENTAL INFORMATION 1. J
.j I: j 1'
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m ~ l I INDEPENDENT AUDITORS' REPORT' I : 1 1 I . 1, I 4 I I I I , I I I I l 1
-~ , . em y 1
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l
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i s L +
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s ev n ;g 4 y, ' w, , t u BRENT MILLIKAN & COMPANY, P.A. i CERTIFIED PUBLIC ACCOUNTANTS ! 1 Utilities Commission,
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I City.of New Smyrna Beach, Florida New Smyrna Beach, Florida i INDEPENDENT AUDITORS' REPORT-I We have audited the accompanying balance sheets of the Utilities Commission, City of New Smyrna' Beach, Florida, _ as of September 30 1989 and 1988, and the-related statements of revenues -expenses and changes in retained earnings, and cash flows for the years then ended. These financial' statements are the responsibility of the Commission's management. Our responsibility is to
' express an opinion on these financial statements based on our cudits. .
We conducted our audits in accordance with generally. accepted auditing ] standards. Those standards require that we plan and perform the audit.to ! obtain reasonable assurance about whether the financial statements are free of l material misstatement, An audit includes examining, on_a test basis, evidence ;
.I__ supporting the amounts and disclosures in the financial statements. An audit !
also includes assessing the accounting principles used and significant l estimates made by management, as well as evaluating the overall financial l statement presentation. We believe that our audits provide a reasonable basis for our opinion, j i
.5 In our opinion, the financial statements referred to above present fairly, in B all material respects, the financial position of the Utilities Commission, City of New Smyrna Beach, as of September 30, 1989, and 1988, and the results of its operations and its cash flows for the years then ended in conformity- '
with generally accepted accounting principles. Our' audits were conducted for the purpose of forming an opinion'on the basic financial statements taken as a whole. The supplement.1 and statistical inforw -ion are presented for purposes of additional analysis and are not a require. part of the basic' financial statements of the Utilities Commission, , City of few Smyrna Beach, Florida. The information has been subjected to the ! auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to - the basic financial statements taken as a whole.
;I .-
1 1 205 MAGNOLIA ST.
- P.O. BOX 1226
- NEW SMYRNA BEACll, FL 32170-1226 * (904) 4271333 252-3821
- FAX (904) 427-5823 MEMDFR: American fastitute of Certified Public Accountants and ABCPA Private Companies Practice Section I
! i Utilition Commission, City of New Smyrna Beach, Florida New Smyrna Beach, Florida I._ Page 2 of 2-l In connection with our audit, nothing came to our attention that caused us to believe that the Utilities Commission, City of New Smyrna Beach, Florida, was not in compliance with any'of the terms, covenants, provisions, or conditions R.. ' of section 16 of Resolution No. 28-78 dated June 30, 1978, as amended. However, it should be noted that our audit was not directed primarily toward l obtainin;; knowledge of such noncompliance. '
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I Now Smyrna Beach, Florida November 17, 1989 i i I- , I 1 1 3n s ,y g , y, U!YEi %
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I: I I I GENERAL PURPOSE FINANCIAL STATEMENTS (Combined Statements - Overview) These basic financial statements provide a summary overview _ I_l of the financial position as well as the operating _results. of the Utilities Commission. They also serve as an introduction to the more detailed statements and. schedules l that follow. I . 1
.g !
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UTILITIES COMMISSION Statement 1 CITY OF NEW SMYRNA BEACH, FLORIDA COMPARATIVE BALANCE SHEETS September 30, 1989-and 1988 ASSETS 1989 1988-UTILITY PLANT! W Electric plant $39,229,967 $38',103,157 Water plant 14,771,713 14,325,687-Pollution Control plant 16,995,713 16,874,018 General Plant 4.762.069 4.482.025 75,759,462 73,784,8 td Less: acewnulated depreciation and amortization (25.294.147) _( 23.139.496) 50,465,315 50,645,391 Construction work in progress 3.886.761 1.339.507 UTILITY PLANT NET 54.352.076 51;984.898 RESTRICTED ASSETS: Debt Service funds 5,067,859 5,140,544 Renewal and Replacement funds 3,677,300' 4,470,844 Customer's deposits 907,953 871,457 CR-3 Decommissioning fund 362,117 251,605 Rate stabilization fund 90.516- 16.024 TOTAL RESTRICTED ASSETS 10.105.745 10.750.474 CURPENT ASSFJ.31 Cash 521,953 395,745 Accrued interest receivable 56,420 53,607 Accounts receivable (net) 1,553,631 1,223,125 ' Unbilled accounts receivable 1,490,395 1,598,744 Due from other governments Inventories 30,772 1,467,463 70,970 1,438,728. g Prepaid expenses and other assets g 121',889 140,228 Assessments receivable 63.454 89.811 TOTAL CURRENT ASSETS 5.305.'977 5.010.958 DEFERRED CHARGES AND OTHER ASSETS: Unamorti::ed debt expense 550,807 590,875 l'l 5 Deferred charges and other assets 23,543 110,213 Assessments receivable - noncurrent 115.692 159.085 TOTAL DEFERRED CHARGES AND OTHER ASSETS 690.042 860.173 i TOTAL ASSETS $70,453,840 $68,606,503 The accompanying ne,tes are an integral part of the financial statements.
d LI I LIABILITIES AND UTILITY EQUITY 1989 1988 I- UTILITY EOUITY: Contributed capital $18,540,201- $17,672,840
-E Retained Earnings:
3~ Reserved for debt service 2,675,541 2,728,142 "- Unreserved 4.697.935 4.582.127 I TOTAL UTILITY EQUITY 7.373.476 25.913.677 7 210.269 24.983.109 I' LONC-TERM DEBT: Note payable (net of current portion) M enue certificates payable (net of 1,726,744 -745,561 [ I current portion) Less: unamortized discount on revenue certificates 36,285,000 (689.602) 37,090,000 (740.966) TOTAL LONG-TERM DEBT I RESTRICTED FUND LIABILITIES: Revenue certificates payable (current portion) _37'.322.142 37Op4.595 1,145,000 1,085,000 Note payable (current portion) 45,000 30,000 Accrued interest payable 1,292,834 1,~313,426 Accounts payable 697,404 65,290 Customers' deposits 849,963 778,677 Reserve'for decommissioning costs 362.117 251.605 s TOTAL RESTRICTED FUND LIABILITIES 4.392.318 ' 3.523.99% CURRENT LIABILITIES: Accounts payable 1,443,706 1,557,946 Accrued liabilities I Due to other governments
'544,468 231.956:
569,701 343.620 ( TOTAL CURRENT LIABILITIES 2.220.130- 2.471.267 I- OTHER NONCURRENT.. LIABILITIES: j
-Deferred compensated absences 490,315
_g 403,186 Operating reserves 115,258 45,303 g Other liabilities -- 85.045 TOTAL OTHER NONCURRENT LIABILITIES 605.573 533.534 TOTAL LIABILITIES 44.540.163 43.623.394
.Ii 5 TOTAL LIABILITIES AND UTILITY EQUITY $70,453,840 $68,606,503
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UTILITIES COMMISSION Statement 2 CITY OF NEW SMYRNA BEACH, FLORIDA -- STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For the Fiscal Years Ended September 30, 1989 and 1988 1989 1988 OPERATING REVENUES Sales $26,155,534 $24,180,899 Other revenues 261 QD 261.866 TOTAL OPERATING REVENUES 26.416.607 24.442.765 OPERATING EXPENSESt Production expenses _ 13,903,532 12,780,038-Transmission, distribution and sewage collection and treatment 2,795,429 2,657,153 ' Customer accounting 660,210 647,001-Administrative and general , 3,025,338 2,888,994-Required payments to the City of New Smyrna Beach 1,589,082 1,481,102 State utilities tax ~ 308,843' _291,187 Depreciation 1 2.212.241 2.119.675 j TOTAL OPERATING EXPENSES- 24.494.675 22.865.150 OPERATING INCOME 1.921.932 1.577.6tc ADD: NONOPERATING REVENUE: j Interest earnings '818,148' 668,355 Other. income 190,580 -152,062 Gain on disposal of fixed assets g- 3 6.373 6.421 gi TOTAL NONOPERATING REVENUE 1.015.101- 826.838. TOTAL INCOME 2.937.033 2.404.453 I ; LESS: NONOPERATING EXPENSES: Interest and debt expense 2,737,217 2,775,470
'gg Other expenses 83,773 37,730 '
Loss on disposal of fixed assets 52.836 8.732 i l TOTAL NONOPERATING EXPENSES 2.873.826 2.821.932 ' NET INCOME (LOSS) 63,207 (417,479) RETAINED EARNINGS - BEGINNING OF YEAR 7.310.269 7.727.748 RETAINED EARNINGS - END OF YEAR $ 7,373,476 $ 7,310,269 l. The, accompanying notes are an integral part of the financial statements. II. , 1 3,
UTILITIES COMMISSION Statement 3 _ CITY OF NEW SMYRNA BEACll, FLORIDA Page l'of.2 STATEMENT OF CASH FLOWS { For tho' Fiscal Years Ended September 30, 1989 and 1988 p... 1989 1988 CASH PLOWS FROM OPERATING ACTIVITIES: Cash received from customers $26,611,174 $25,032,704 -l Cash paid to suppliers and employees (21,708,667) (20,970,008) I Interent received Interest paid,(net of amount capitalized) 815,335 662,081 (2.666.377) (2.698.611) NET CASH PROVIDED BY OPERATING ACTIVITIES 3.051.465 2.026.166 CASH PLOWS PROM CAPITAL AND RELATED l l FINANCING ACTIVITIES: Not proceedt, from issuance of long-term debt Debt reduction-outlays' 1,026,182 775,562- 1 l (775,000). (620,000)- l Contributed capital 867.360 794.134 NET CASH PROVIDED BY CAPITAL AND RELATED FINANCING ACTIVITIES 1.118.542 o'e 9 . 696 i l- CASil FLOWS FROM INVESTING ACTIVITIES: l i Proceeds from sale of property and equipment .17,969 9,255-Acquisition s.nd construction of capital assets- (4,706,497) (2,094,748) 1 Purchase of investment securities (4,829,867) (4,154,042) i i Proceeds from sale and maturities of investment securities _ l.610.600 3.907.824 i NET CASH USED IN INVESTING ACTIVITIES (4.907.795) (2.331.711) i i NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (737,788). 644,151 f l I CASH AND CASH EOUIVALENTS - Berinninc of Year 8.087.159 7.443.008 ! CASH AND CASH EOUIVALENTS - End of Year $ 7,349,371 $ 8,087,159 , I i I I The accompanying notes are an integral part of the financial statements. 6
UTILITIES COMMISSION Statement 3 CITY OF NEW SMYRNA BEACH,-F14RIDA Page 2 of=2 STATEMENT OF CASH FLOWS For the Fiscal Years Ended September 30,1989 and 1988 1989 -1988 - RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY , OPERATING ACTIVITIES: " Net income (loss) 63.207 (417.479) Adjustments to reconcile net income (loss) to net ' cash provided by operating activities. . . Depreciation and amortization 2,366,318 2,340,474 ! Provision for losses on receivables 54,541 55,327 - Loss (gain) on sale of property and equipmen 46,463 2,311 Decrease (increase) in operating assets: l Accounts receivable (262,857) 279,226-Assessments receivable 26,357- 71,284-Accrued interest receivable (2,813) (6,273) - j Inventories (28,735) (141,587). Prepaid expenses . 18,340 10,472-Deferred charges and other assets 156,422 (84,459)- 1 Increase (decrease) in operating liabilities: Accounts payable 517,874 (154,513) Accrued interest payable (20,592) -(16,381) ; Due to other governments (111,665) 19,103 Customer deposits 71,286 (7,195) Other liabilities 157.319 75.856 l TOTAL ADJUSTMENTS 2.988.258 2.443 L4.1 NET CASH PROVIDED BY OPERATING ACTIVITIES. $ 3,051,465 $ 2,026,166 4 I I 1
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The accompanying notes arc an integral part of the financial statements. 7 Wl
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I NOTES TO THE FINANCIAL STATEMENTS-I g -I 1 i I . 3 i
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UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH,- FLORIDA NOTES TO THE FINANCIAL STATEMENTS September 30, 1989 and 1988 Page 1 of 21 I 1.
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES i I The accounting policies of the Utilities Commission, City of New Smyrna Beach, (the " Utilities Commissien") conform to the generally accepted accounting principles as promulgated by the American Institute of Certified i Public Accountants, the Financial Accounting Standards Board, the I.- Governmental Accounting' Standards Board, and the Federal Energy-Regulatory Commission. The following is a summary of the significant policies: A. ORGANIZATION-The Utilities Commission, was created'in 1967 through the passage of. I Chapter 67-1754,. Laws of Florida, Special Acts of 1967 (House Bill 1669) which amended the Charter of the City of New Smyrna Beach, Florida, to. create the Utilities Commission. In a' referendum held October 2,.1984, i the voters of the City of New Smyrna Beach, Florida, approved amendments l to the City Charter. The amendments limit a Utilities Commissioner's term to three years instead of five with na more than three consecutive terms, require City Commission approval for extensions of utility services outside the city limits, give th9 City Commission the right to , review and approve the Utilities Commission budget, and require City Commissicn approval before issuing or refunding revenue certificates and entering into contracts exceeding four years.. B. REPORTING ENTITY The funds and entities related to the operation of-the Utilities I Commission which are included in these financial statements are a component unit of the City of New Smyrna Beach, Florida,-and an integral part of the City's reporting entity. The basic financial statements are incorporated in the City's Comprehensive Annual Financial Report'as an enterprise fund activity. - In 1983, the Utilities- Commission entered into a participation agreement with Florida Municipal Power Agency (FMPA) for an entitlement share.of electric capacity and electric energy from FMPA's undivided ownership. interest in Florida Power and Light Company's St. Lucie Unit No. 2, a nuclear generating unit. - The Utilities Commission's role in the , agreement is limiud to that of a participant contractually obligated to purchase electric capacity and electric energy. The agreement between the Utilities Commission and FMPA does not meet the criteria for inclusion within the reporting entity of the Utilities Commission. The ! agreement specifically provides that the arrangement -is not a joint i venture and neither FMPA nor the other utilities which entered into 4 participation agreements with FMPA for entitlement shares from FMPA's undivided ownership interest in St. Lucie Unit No. 2 are accounting for tne agreement as a joint venture. Accordingly, the Utilities Commission i is not accounting for the agreement as a joint venture. '
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UTILITIES COMMISSION - CITY OF NEW SMYRNA BEACH, FLORIDA -
. NOTES TO THE FINANCIAL STATEMENTS-September 30, 1989 and 1988 Page 2 of 21
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SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. BASIS OF ACCOUNTING Basis of accounting refers to when revenues and' expenses are recognized
.in the_ accounts and reported in the financial statements. It relates =to )
the. timing of the measurements made, regardless of the measurement focus ' applied. < The Utilities Commission utilizes the . accrual basis of accounting. By utilizing this method, revenues are recognized when they l a; are earned, and expenses are recognized as they are incurred.- Unbilled utility service. receivables are recorded so as to provide a better a matching of service revenues and the costs of providing the service, g D. BUDGET AND BUDGETARY ACCOUNTING An annual budget was adop'ted for the electric, water and pollution control utility systems. The budget was prepared:on the accrual basis.
-for the period beginning October 1, and ending September 30. By use of g the accrual method of budgeting, revenues and expenses are budgeted for g specific periods of time and are recorded as incurred, along with -
acquired assets, without regard to the date of receipts, or payment of cash. Budget appropriations are prepared by the administrative. staff and approved as provided by law by the Utilities Commission. Budgetary control is exercised at the departmental level. Budget amendments, if any, can be requested by the Director of Utilities. . However, all budget l amendments must be approved by the Utilities Commission.- Unexpended W4 appropriations for operations lapse at year end. During thelrecent i fiscal year, the Utilities Commission made amendments to the approved gy budget in the form of utility service rate changes. No supplemental g appropriations were required for the current year. E. CASH AND' CASH EOUIVALENTS The Utilities Commission invests all cash balances in interest bearing ; accounts. Earnings from these investments are appropriately allocated to the investing fund accounts based upon the investment equity and are g' gi used, where applicable, to finance general utilities commission. operations, an . For purposes of the st.atement of cash flows, the Commission considers all highly liquid debt instruments purchased with original maturity ; dates of three months or less to be cash equivalents. F. INVESTMENTS l Investments are recorded at cost or amortized cost, which approximates market. Adjustments are made to cost, for any premium or discount, which ' is amortized over the maturity of the investment. I 9
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UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FIDRIDA NOTES TO THE FINANCIAL STATEMENTS September 30, 1989 and 1988 Page 3 of 21
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SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (Continued) G. RECEIVABLES Allowance for uncollectible accounts
-Accounts receivable have been reported net of the allowance for uncollectible accounts which has been provided based upon management's analysis of historical trends.
Estimated unbilled revenue Utility Operating sales are recognized on the basis of cycle billings rendered monthly.. Unbilled accounts receivable are accrued at September 30, to recognize the sales revenues earned between the last meter { reading date made through the end of the fiscal year, j H. INVENTORIES Inventories are priced at cost by the use of the "first-in, first-out" i method of accounting. The effect of this method is to flow the costs of ; the materials and supplies in the order in which they are purchased and to assign a balance sheet inventory valuation more nearly at current replacement value. Electric line transformers, electric meters, water meters and replacement units for the generating plants are classified as utility plant in accordance with accepted industry practices. set forth by the National Association of Regulatory Utilities Commissioners. I. UNAMORTIZED DEBT DISCOUNT AND ISSUE COSTS Bond discounts and issuance costs are deferred and amortized over the term of the bonds using the bond outstanding method which approximates ; the interest method. Unamortized bond discounts are presented in aggregate in the financial statements as a reduction of the carrying ! cost of the related long-term debt. Unamortized debt issuance costs are presented as other assets. J. RESTRICTED ASSETS Proceeds from debt, funds required to be set aside for the payment of revenue bonds debt service and contingencies, and other specific assets set aside for restricted purposes which cannot be used for routine operations are classified as restricted assets since their ! exclusive use is limited by applicable bond covenants and other legal indentures. K. UTILITY PLANT Utility plant is stated at historical or estimated historical cost. The costs of additions, replacements, and renewals of units of property are added to utility plant. The cost (estimated, if not known) of units of property retired, less net salvage, is charged to accumulated l depreciation and the appropriate asset account. Donated utility plant is stated at its estimated fair market value on the date donated. 10
UTILITIES COMMISSION- IL CITY OF.NEW SMYRNA BEACH, FiDRIDA NOTES TO THE FINANCIAL STATEMENTS . September 30, 1989 and 1988 Page 4 of 21 '
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SUMMARY
OF SICNIFICANT ACCOUNTING POLICIES (Continued) Maintenance-and repairs of property and replacements and renewals of g items determined to be less than units of property, are charged to-operating expense as incurred. Construction period interest is g capitalized net of interest earned on unexpended construction funds in accordance with the applicable provisions of Financial Accounting 'E Standard Number 62 and, therefore, depreciated over the remaining useful .Ei life of the related asset. Depreciation is provided for by utilization- of the straight line method , (half year. convention in' year of acquisition) calculated on a service life basis to amortize the cost of the assets over their economic estimated useful lives which are as'follows:
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Electric System: Production plant: Nuclear production ...................... 27 years R 5 Diesel production ........i.............. 20 - 40 years Transmission plant ....................... 30 - 55, years a Distribution plant ....................... General plant: 28 - 45. years g Structures and improvements ............. 40 years Other general plant ...... .............. Water Svstem: 5 - 20 years E] 5"
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Source of supply plant ................... 25 - 50 years Pumping plant ............................ 35 years- g ! Water treatment plant .................... 40 - 50 years gj Transmission and distribution plant....... 25 - 50 years General plant: 1 Structures and improvements .............- 35 years Other general plant ..................... 10 - 35 years Pollution Control Systemt Collection plant ......................... Pumping plant: 35 50 years 'g ' g Structures and improvements ............. '50 years Pumping equipment ....................... 25 years Treatment and disposal plant a-25.- 40 years Ceneral plant ............................ Common Plant 10 - 50. years {i I Structures and improvements .............. 35' years Other. general plant E.
...................... 5 - 15 years E L. ACCRUED PAYROLL AND ACCUMULATED UNPAID VACATION AND SICK PAY i The portion of employee payroll costs paid subsequent to year-end '
attributable to services performed prior to year-end is recorded and j recognized as a current liability. Employees earn annual vacation leave ' at the rate of 80 hours per year for one through five years of service ' and 80 hours plus eight hours for each two years service over the first i five years to a maximum of 160 hours per year. All outstanding vacation leave is payable upon termination, Bi mj o f 11
UTILITIES COMMISSION _ CITY OF NEW SMYRNA BEACll, FLORIDA NOTES TO THE FINANCIAL STATEMENTS g September 30, 1989 and 1988_ Page 5 of 21
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SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (Continued); l Employees accumulate ten hours (eight hours prior to July 1,1986) of I sick leave credit for each month on regular pay status. Employees make an irrevocable election re&arding the accumulation of credits and the amounts of credits which can be received upon termination. One option provides for the payment of all unused s ick leave at 75% of th existing I pay rate at termination. The second option requires the " banking" of at least 240 accumulated hours. Ilours accumulated in excess of 240 hours will be paid annually at 75% of the preceding July _1st pay rate. M. CONTRIBUTIONS-Contributions of capital to a proprietary fund from any source received I are-recorded in an appropriately captioned contributed capital account. N. RESERVES Funded reserves are used to record a portion of retained earnings which j must be segregated for some future use and which are, therefore, not j available for further aporopriation or expenditure. The reserve for nuclear re-fueling and maintenance outage is an operating reserve established to account for the estimated charges to be incurred for the removal and installation of nuclear-fue1Lassemblies. ' Charges are made against the reserve at the time the actual re fueling takes place. The reserve for nuclear plant decommissioning costs was
-I established to account for the estimated costs of nuclear plant decommissioning. Charges against-the reserve will be made at the actual time of decommissioning.
O. RATES. REVENUES AND FUEL EXPENSES Revenues are recognized based on monthly cycle billings:to customers. The rate schedules are approved by the Utilities Commission. The ' electric rate schedule contains an energy cost'~ adjustment clause which reflects the cost of fuel as well as' the energy and fuel components of I purchased power. Generally, the effect of the increases and/or decreases in the cost of energy is recovered ~over a four month period and is determined as the difference between actual applicable fuel costs and the costs actually billed during the same period, j The cost of nuclear fuel is amortized to fuel expense based on the _ quantity of heat produced for generation of electric energy in relation , I to the quantity of heat expected to be produced over the life of the nuclear fuel core. 12 j l
^ UTILITIES COMMISSION-CITY OF.NEW SMYRNA BEACH, FLORIDA NOTES'TO THE FINANCIAL STATEMENTS September 30, 1989 and 1988 Page 6 of 21 f
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SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (Continued). P. RECIASSIFICATION For comparability purposes, reclassifications have been made to the 1988 . financial statements to conform with the 1989 financial statement . presentation. [- . .
- 2. CASH DEPOSITS AND INVESTMENTS.
Pursuant to the applicable provisions of Chapter 280, Florida Statutes, ~ (The ; i Florida Security for Public Deposits Act), the State of-Florida,' Department-l of Insurance, Bureau of Collateral Securities, and the Department 'of . Treasury have established specific requirements relative,to the security and .,} collateralization for public deposits. .Accordingly, banks' qualifying as'a public depository-in the State of Florida must adopt the necessary 7 procedures outlined in these statutes and meet all of.the requirements ofL
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3' this- chapter to be designated' by the. State Treasurer as eligible to receive 3; deposits.from municipal depositors. Collateral having a market value-equal ; to 50% of the average daily balance for each month of all public deposits in l excess of any applicable depository insurance-is' required to be pledged or i l deposited with the State Treasurer to secure such deposits. Additional collateral, up to a maximum of 125%, may_be required.if deemed.necessary under the conditions set forth in the Act. Securitiesieligible to be pledged as collateral-are generally limited to obligations of the United l States government and any state thereof and are held in the name of the State Treasurer's office. Compliance with the provisions of Chapter 280, Florida Statutes, is monitored by the Department of Insurance. A. DEPOSITS The Commission maintains several multi-purpose cash accounts which are aggregated and swept nightly for investment in accordance with the provisions of a negotiated three-year overnight repurchase agreement. : - As~a part of this agreement, the Commission is required to maintain a single non-interest bearing compensating balance account in 'the amount , of $208,000. At September 30,.1989, the carrying amount of the Commission's deposits was $5,476,941. Of this amount, $200,000 was insured by federal depository insurance and $5,276,941 was secured in accordance with the statutory provisions of the Florida Security for Public Deposits Act. Included in the carrying amount of Commission deposits is $8,550 in petty cash and change funds. . B. INVESTMENTS The Commission's investment policies are governed by state statutes and i local resolution. At September 30, 1989, the Commission's investment in allowable investment instruments included: bonds, notes, certificates of indebtedness, treasury bills, and other securities which are 13 -
> UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA I NOTES TO THE FINANCIAL STATEMENTS-September 30, 1989 and 1988 Page 7 of 21
- 2. CASH DEPOSTTS AND INVESTMENTS (Continued) guaranteed by the full faith and credit of the United States of America.
-The Commission's investments are categorized below to give an indication of the-level of risk assumed by the Commission at September 30th.
Category 1 includes investments that are insured or registered or for which the securities are held by the Commission or its agent in the Commission's name. -Category 2 includes uninsured and unregistered investments,for which the securities are held by the brokers or dealers
'E. trust departments or-agents in the Commission's name. Category 3
-B includes uninsured and unregistered investments for which the securities are held by the broker or dealer, or by its trust department or agent but not in the Commission's name. There were no category 2 and 3 investments at September 30, 1989, category Carrying Market Tyne of Investment 1 value
, value U.S. Treasury Fund ............ $2,135,388 $2,135,388 $2,135,388 U.S. Treasury Bills ........... 1,598,427 1,598,427 1,603,570 I. U.S. Treasury State and Local Government Series (Si4S):
I Notes ..................... Bonds ..................... 765,696 651.245 765,696 651.245 765,696 651.245 TOTALS ................. $5,150,756 $5,150,756 $5,155,899-
- 3. RESTRICTED ASSETS Restricted assets consist of the following:'
Sectember 30. 1989
'I. Time Deposits / Interest Accrued September 30, 1988-Cash Investment Receivable Total Total I Debt Service Funds:
1978 Sinking Fund 1978 Reserve Fund
$1,042,461 $ 2,042 $1,044,503 $ 1,049,049 2,034,100 13,294 2,047,394 2,083,720 3
g 1986 Sinking Fund - 319,053 565 319,618 318,561 g 1986 Reserve Fund - 546,988- 443 547,431 553,598 1987 Sinking Fund - 367,983 730 368,713 369,920 1987 Reserve Fund - 740.200 - 740.200 765.696 5.050.785 17.074 5:067.859 5.140.544 I I 14
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UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FIDRIDA NOTES TO TiG I'INANCIAL STATEMENTS Sep %mber 30, 1589 and 1988 Page 8 of 21 l 5 3 .- RESTRICTEE ASSETS (Continued) Seotember 30. 1989 Accrued September 30, ' Interest 1988 Cash Investment Receivable Total Total Renewal and Reolacement Funds: Res. No. 28 78 $1,225,781 $ -
$ - $1,225,781 $ 1,838,329- :
FDOT Project Fund 112,929 - -
-112,929 161,699 l Water and Pollution ~ -"
Control Connection Fee Fund ....... 2.338.590 - - 2.338.590 2.470.816 3.677.300 - - 3.677.300 4.470.844 Customer deoosits .. 907.953 - - 907.953- 871.457 -
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CR-3 decommissioning ' fund ............... 10.086 350.000 2.031 362.117 251.605 ; Rate Stabilization 90.516 I.I j Eund ............... - - 90.516 _ 16.024 . TOTALS ......-$4,685,855 $5,400,785 $ 19,105 $10',105,745 .$10,750,474
- 4. ACCOUNTS RECEIVABLE A summary of net accounts receivable at September 30,.1989 and 1988, is as-follows:
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1989 1988 g-Billed customer accounts receivable ............. $1,610,470 $1,280,450 .i Customer notes receivable ....................... 578 92' g-! 1,611.048 '1,280,542 Less: allowance for doubtful accounts .......... (57.417) (57.417)- 5 l TOTALS ................................... $1,553,631 $1,223,125 I l
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UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA NOTES TO THE FINANCIAL STATEMENTS , { y September 30, 1989 and 1988 Page 9 of 21 1 [ l
- 5. FIXED ASSETS-A summary of utility plant at September 30, 1989 and 1988, is as follows:
I (000's omitted) Pollution I 1989: Land and land rights ...... $ 1,230 Electric Water 98 Control
$ 197 Common
$ 7 Total
$ 1,532 i
Structures and improvements 2,528 2,436 3,786 948 f9,698 Production plant, nuclear i- fuel and treatment plant 9,886 4,119 4,210 - 18,215' Transmission, distribution and collection piant 25,178 8,118 8,803 I other general plant and
.. - 42,099 Li equipment .............. -408 - -
'3.807 4.215 !
39,230 14,771 l Accumulated depreciation .. 14.717 24,513 3'.997 10,774 16,996 4.682 12,314 4,762 1.898 2,864 75,759 25.294 50,465 1 Construction in progress .. 2.135 764 805 183 3.887 .lB ) UTILITY PLANT - NET $26,648 $11,538 $13,119 $ 3,047 $54,352 ! 1988: I Land and land rights ...... $ 1,230 98 i
' $ $ 197 $ 7 $ 1,532 l Structures and improvements 2,502 2,405 3,781 .948 9,636 Production plant, nuclear I fuel and treatment plant 9,267 4,119 4,208 -
17,594 Transmission, distribution l and collection plant 24,692 7,704 8,688 I Other general plant and equipment
... - 41,084 j
.............. 412 _- -_ 3.527- 3.939 38,103 14,326 16,874 4,482 73,785 ;
1 Accumulated depreciation .. 13.627 3.717 4.281 1.515 23.140 24,476 10,609 12,593 2,967 50,645 Construction in progress .. 602 390 266 82 1.340 UTILITY PLANT - NET $25,078 $10,999 $12,859 $ 3,049 $51,985- , Capitalized interest on outstanding tax-exempt securities charged-(credited) ' to projects during the construction period was $69,687 and $11,407, for 1989 and 1988 respectively (net of interest earned on unexpended long-term debt ! proceeds totaling $72,756 and $18,747, respectively). 16 1
UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH. FLORIDA NOTES TO THE FINANCIAL STATEMENTS September 30, 1989 and 1988 Page 10 of 21 -
- 6. 1DNG-TERM DEBT A. Long term debt outstanding at September 30, is-as follows:
1989 1988 Revenue Certificatest ~ Utilities System Revenue Refunding and . E-Improvement Certificates, Series,1976 6.00% 5 to 7.125% due serially to 1993, with.
$9,075,000'and $11,335,000 term certificates 's due in 2003 and 2010, respectively._......._.....-'$22,890,000 $23,355,000 g Utilities System Revenue Improvement certificates, Series 1986 5.00% to 7.25%
-due se:ially to 2001, with $4,670,000' term bonds due in 2015 ............................. 6,410,000 6,500,000 Utilities System Refunding Revenue Certificates, -
Series' 1987--4.50% to 7.10% due serially to 2001, with $2,790,000 and $2,080,000 term q bonds due in 2007 and 2011, respectively ...... . 8.130.000 8.320.000 - 37,430,000 38,175,000 Less: unamortized debt discount ................ 689.602 740.966 TOTAL REVENUE CERTIFICATES OUTSTANDING (NET OF UNAMORTIZED DISCOUNT) ..........., _36.740.398 37.434.034 Note Pavable: > Note payable-Florida Municipal Power Agency, as agent for The Initial Pooled Loan Project-- ,
$3,000,000 maximum principal amount, with
]
variable interest rate (currently 6.25%), ' principal due in installments.to 2013 ......... $ 1.771.744 $ 775.561 TOTAL OUTSTANDINC LONG TERM DEBT ....... 38.512.142 '38.209.595 Current Maturities: Series 1978 Certificates ........................ 755,000 710,000 l Series 1986 Certificates ........................ 190,000 185",000 Series 1987 Certificates ........................ 200,000 190,000 Note Payable - FMPA ..... ....................... 45.000 30.000 TOTAL CURRENT MATURITIES ................. 1.190.000 1.115.000 TOTAL LONG-TERM DEBT (NET OF UNAMORTIZED DISCOUNT) ............ $37,322,142 $37,094,595 i The authorization for the outstanding 1978 Certificates and all subsequent issues provides that the Utilities Commission will not issue additional obligations except for the construction and acquisition of additions, - 17 g l51
)
~!
UTILITIES COMMISSION CITY OF NEW SKYRNA BEACH, FLDRIDA NOTES TO THE FINANCIAL STATEMENTS ' September 30, 1989 and 1988 Page 11 of 21
- 6. IhNG qP.RM DEBT (Continued) extensions and improvements to the system or for refunding purposes and j except upon the conditions provided in the authorizing resolution. !
The 1978 Certificates are payable from and secured by a first lien upon and ! I pledge of the net revenues derived from the operation of the system, The ' payment of the principal of and interest on the 1986,' and 1987 Certificates . referred to herein are secured ratably by a first lien on and a pledge of ? the net revenues of the system on a parity with the outstanding 1978 ; Certificates. These Certificates de not constitute general indebtedness of l the Utilities Commission or the City of New Smyrna Beach, Florida (City) and , the city is not obligated to levy any taxes for the payment thereof. Under the terms of its long term debt agreements, the Utilities Commission has agreed to maintain certain restricted funds (see Note 3) and to comply I with the covenants contained in such agreements. Certain of these agreements contain the following provision relating to the right of the obligation holder: j "Any holder of certificates or any coupons appertaining thereto 3 issued under the provision hereof or any trustee acting for the holders of such certificates may by suit, action, mandamus or 4 other proceedings in any court of competent jurisdiction, ; protect and enforce any and all rights, including the right to tha appointment of a receiver, existing under the laws of the State of Florida, or granted and contained herein, and may i enforce and compel the performance of all duties herein required or by any applicable statutes to be performed by the Commission or by any officer thereof. NotN ng herein, however, shall be construed to grant to any hM oer of the certificates any lien on any real property of the i Conmission or the Ci:y." l 1 The applicable rate of interest on the note payable to the Florida Municipal Power Agency (FMPA), as aEent for the Initial Pooled Loan Project is subject to change with ten days notice from FMPA. The Loan Agreement also prcvides ' that FMPA may increase the effective rate of interest to recover ae cost of interest becoming due on the FMPA obligations allocable to the loan and to I recover certain other expenses from the Utilities Commission, if uy, in administering the subject Loan. B. The schedules of debt service to maturity on the outstanding revenue I certificates at September 30, 1989, are as follows: I . 18 t t
UTILITIES COMNILSION ' CITY OF NEW SMYRNA BEACH, FIDRIDA
' NOTES TO THE FINANCIAL STATEMENTS September 30, 1989 and 1988 Page 12 of 21 ll mj I
l 6. LONG TERM DEBT (Continued) 1978 Certificates Payment Coupon Total Date Princical _Egig Interest Reaufrements 10189 $ 245,000 6.100% $ 799,503 $ 1,044,503 E l 04 1 90 250,000 6.200 792,031 1,042,031 5 10 1 90 260,000 6.200 784,281 1,044,281 04 1 91 265,000 6.300 776,221 1,041,221 g 10191 04 1 92 275,000 285,000 6.300 6.350 767,873 759,211 1,042,873 1,044,211 g; 10192 290,000 6.350 750,162 1,040,162 04 1 93 300,000 6.400 740,954 1,040,954 10 1 93 310,000 6.400 731,354 1,041,354 04 1 94 320,000 7.000 721,434 1,041,434 10 1 94 330,000 7.000 710,234 1.040,234 04 1 95 345,000 7.000 698,684 a1,043,684 3 10-1 95 355,000 7.000 686.609 1,041,609 3 04 1 96 370,000 7.000 674,184 1,044,184 ' 10 1 96 380,000 7.000 661,234 1,041.234 l 04 1 97 395,000 7.000 647,934 1,042,934 . l 10 1-97 410,000 7.000 634,109 1,044,109 04 1 98 425,000 7.000 619,759 1,044,759 , 10 1 98 435,000 7.000 -604,884 1,039,884-l 04 1 99 455,000 7.000 589,659 1,044,659
- l 10 1 99 470,000 7.000 573,734 1,043,734 g l 04 1 00 485,000 7,000 557,284 1,042,284 10-1 00 500,000 7.000 540,309 g'
1,040,309 ! l 04 1 01 520,000 7.000 522,809 1,042,809 10 1 01 540,000 7.000 504,609 1,044,609 04 1 02 555,000 7.000 485,709 1,040,709 10 1 02 575,000 7,000 466,285 1,041,285 04 1 03 595,000 7,000 446,160 10 1 03 615,000 7.000 425,335 1,041,160 g 1,040,335 g, 04 1 04 640,000 7.125 403,810 1,043,810 10 1 04 660,000 7.125 381,010 1,041,010 04-1 05 685,000 7.125 357,497 1,042,497 10 1 05 710,000 7.125 333,094 1,043,094 04 1-06 735,000 7.125 307,800 1,042,800 10 1 06 760,000 7.125 281,616 1,041,616
- i. 04 1-07 790,000 7.125 254,541 1,044,541 l m
- 10 1 07 815,000- 7.125 226,397 1,041,397 04 1 08 10 1 08 845,000 875,000 7.125 7.125 197,363 167,259 1,042,363 1,042,259 g'
04 1 09 905,000 7.125 136,088 g. 1,041,088 l 10 1 09 940,000 7.125 103,847 1,043,847 04 1 10 970,000 7.125 70,359 1,040,359 10 1-10 1.005.000 7.125 35.803 1.040.803 l
=
$22,890,000 $21,929,032 $44,819,032 19 !
s - UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FIARIDA NOTES TO THE FINANCIAL STATEMENTS September 30, 1989 and 1986 Page 13 of 21
- 6. LONG-TERM DEBT (Continued) v L-.
1986 Certificates Payment Coupon Total Date Princival Rate Interest- Reauirements 10189 $ 95,000 5.200% $ 224,617 $ 319,617 04 1 90 222.148 222,148 1 10 1 90' 95,000 5.400 222,147 317,147 04 1 91 l 219,583 219,583 I 10 1 91 105,000 5.600 219,582 324,582 l I 04 1 92 10 1 92 110,000 5.800 216,643 216,642 216,643 326,642 04 1 93 213,453 213,453 10 1 93 115,000 6.000 213,452 328,452 1 04 1 94 210,003 210,003 10 1 94 120,000 6.200 210,002 330,002 04 1 95 206,283 206,283 10 1 95 130,000 1 04 1 96
-6.400 206,282 202,123 336,282 202,123 10 1 96 135,000 6.500 202,122 337,122 04 1 97 197,735 197,735 1 10 1 97 145,000 6.600 197,735 342,735 04 1 98 192,950 192,950 10 1 98 155,000 6.700 192,950 347,950 1 04 1 99 187,758 187,758 10 1 99 165,000 6.800 187,757 352'757 04 1 00 182,148 182,148 10 1 00 180,000 6.900
'c 182,147 1 04 1-01 175,938 362,147 175,938 10 1 01 190,000 [
7.000 175,937 365,937 l 04 1 02 169,288 169,288 l 10 1 02 205,000 7.250 169,287 374,287 04 1 03 161,857 161,857 10 1 03 220,000 7.250 161,856 381,856 04 1 04 1 10 1 04 235,000 7.250 153,881 153,881 153,881 388,881 04-1 05 145,363 145,363 10 1 05- j 250,000 i 04106 7.250 145,362 136,300 395,362 136,300 10 1 06 270,000 7.250 136,300 406,300 04 1 07 126,513 126,513 10 1 07 290,000 7.250 126,512 416,512 04 1 08 116,000 116,000 10 1 08 310,000 7.250 116,000 426,000 04 1 09 104,763 '104,763 j 10 1 09 330,000 7.250 104,762 434,762 i 04 1 10 92,800 92,800 10 1 10 355,000 '7.250 92,800 447,800 04 1 11 79,931 79,931 ; 20
UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA NOTES TO THE FINANCIAL STATEMENTS Septr.mber 30, 1989 and 1988 Page 14 of 21 -
- 6. lhNG-TF,KLQQI (Cor t.ued) 1986 certificates (Continued)
Payment Coupon Total _Date- .,frinciUAl la.tg M erest Rpoui'rement s 10 1 11 380,000 7.250 79,931 459,931 04 1 12 66,156 66,156 10112 410.000 7.250 66.156 476,156 l 04 1 13 51,294 $1,294 10 1 13 440,000 7.250 51,294 491,294 k 04 1 14 35,344 35,344 f 10 1 14 470.000 7.250- 35,344 $05,344 04 1 1$ 18,306 18,306 10115 505.000 7.250 _ 18.306 523 104: ,
$6,410,000 $7,993,724-
~
$14,403,724
[ 1; 1987 Certificate,g Payment Coupon Total J2g11 .Princigal .2gts Ynterest; Renuirementg 10 1 89 $ 268,713 $ 268,713-04 1 90 $ 200,000 4.750g 268,712 468,712 10 1 90 263,963 263,963 04 1 91 210,000 5.000 263,962 473,962 10 1 91 258,713 258,713 04 1 92 220,000 5,200 258,712 478,712 } 1 10 1 92 252,993 252,993 ' 04 1 93 230,000 5.400 252,992 482,992 10193 246,783 246,783 04 1 94 245,000 5.600 246,782 491,782 10 1 94 239,923 2394923 04 1-95 255,,000 5.800 239,922 494,922 10 1 95 232,528 232,528 04 1 96 270,000 6.000 232,527 502,527 10 1 96 224,428 224,428 04 1 97 285,000 6.200 224,427 509,427 10 1 97 215,593 215,593 04 1 98 305,000 6.400 { 215,592 520,592 10198 205,833 205,833 04 1 99 325,000 6.500 205,832 530,832 10 1 99 195,270 195,f!0 04 1 00 345,000 6.600 195,270 540,'270 10 1 00 183,885 183,885 04-1 01 370,000 6.700 183,885 553,885-10 1 01 171,490 171,400 04 1 02 390,000 7.000 171,490 561,490 10 1 02 l 157.840 157,840 i 04 1 03 420,000 7.000 157,840 577,840 10 1 03 43,140 143,140 04 1 04 445,000 7.000 143,140 588,140 10 1 04 127,565 127,565- . Ii i
,. ~. . . _ _
UTILITIES COMMISSION L, CITY OF NEW SMYRNA BEACH, FLORIDA i l' ' NOTES TO THE FINANCIAL STATEMENTS : l September 30, 1989 and 1988 Page 15 of 21 [ l-I'
- 6. LONG. TERM DEBT (Continued) ;
I 1987 Certificates (Continued) ! Payment Coupon Total I JA1.t 04 1 05 10105 Princion1
$ 480,000
. Rate 7.0006 Interest
$ 127,565 110,765 Recuirements
$ 607,565 110,765 04 1 06 510,000 7,000 110,765 620,765 '
10 1 06 92,915 ' l 92.915
- 04 1 07 545,000 7.000 92,915 637,915 l 10 1 07 73,840 73,840 ,
t 04 1 08 585,000 7.100 73,840 658,840 i
- 10 1 08 53,073 53,073 ,
l 04 1-09 630,000 7.100 53,072 683,072 I 10109 30,708 30,708 i 04 1 10 670,000 7.100 30,707 700,707 : 10110 6,923 6,923 04 1 11 195.000 7.100 6.922 201.922 e
$8,130,000 $7,513,755 $15,643,755 ,
l i C. The aggregate annual debt service requirements for the certificates and , variable interest rate note payable in each of the next five years are as ( follows: ' ! Revenue Note , Certificates Pavable Total ! 1990 ................. $ 3,358,282 $ 185,908 $ 3,544,190 l 1991 ................. $ 3,360,934 $ 183,006 $ 3.543,940 , 1992 ................. $ 3,359,363 $ 180,486 $ 3,539,849 + I 1993 1994
$ 3,353,988
$ 3,353,378 182,202 178,978
$ 3,536,190
$ 3,532,356 D. As a part of its outstanding revenue certificate obligations, the ;
l Utilities Commission is subject to certain covenants and provisions which 1 l require specific actions to be taken by the Commission during the year. The ' L Commission has complied with all significant contractual covenants and provisions,
- 7. f,RIOR YEARS' DEFEASANCE OF DEBT I In prior years, the Utilities Commission defeased certain oucstanding utilities revenue certificates of the Commission and certain general '
obligation bonds of the City of New Smyrna Beach issued for the System I. payable out of revenues derived from the operation of the utilities system by placing the proceeds of new certificates in irrevocable trusts to provide for all future debt service payments on the old certificates / bonds. .E !g Accordins1 7 . the trust account assets and the liability for the defeased , bonds are not included in the Commission's financial statements. ! 5
UTILIT'.ES COMMISSION CITY OF NEW SMYRNA BEACH, F14RIDA i NQTES TO THE FINANCIAL STATEMEPTS September 30, 1989 and 1988 Page 16 of 21 ! v
- 7. PRIOR YEARS' DEFEASANCE OF DEBT (Continued)
At September 30, the following certificates / bonds are considered defensed:- i 1989 1988 ! 1978 Refundine! . Waterworks and Electric. Series 1955 -3.75% due serially to 1993 ........ $ $72,000 $ 704,000 ; Series 1962 refunding 3.5% due serially to 1987 ; and $35,000 in'1999 ......................... 35,000 35,000 ' Series 1962- 3.9% to 4.2% due serially to 2000 , 1,640,000 1,685,000 , Series 1965 -4.2% and 4.25% due serially to 2004 1,865,000 1,895,000 Sewer: : . Series S 1963 3.9% due serially to 2002 ....... 300,000 325,000 Series T-1963 4.0% due 2003 ................... 748,000 783,000
- Series B-1965 3.7% to 4.1% due serially to 2003 435,000 455,000 -
Utilities' Series 1975 -3.75% to 6.2% due serially to 2004 2,250,000 g-2,350,000 g Series 1975A 5.0% to 6.64.due serially to 2005 3,010,000 3.115,000 Water and Sewer Revenue Ceneral Obligation Bonds: ' Series 1976 4.5% to 6.2% due serially to 2001 . 4,605,000 4,855,000 1985 Refundinet ' Series 1982. 12.625% due serially from 2012 E' to 2016 ........................................ 6,190,000 6,190,000 W 1987 Refunding! Series 1985 -5.75% to 9.50% due serially to 1999 i with.$2,135,000 and $3,130,000 term certificates due in 2005 and 2011, respectively ............. 7,090,000 7,205,000
- 8. COMPENSATED EMPLOYEE ABSENCES i
l Pursuant to the Utilities Commission's collective bargaining agreement and l employment contracts, the Commission provides compensatory. wages for l accumulated vacation and sick leave credits that vest with' employees. The ' Commission's liability for accumulated compensated absences at September 30, is as follows: e i 1989 1988 _
-L Current Deferred Current Deferred Vacation credits ............... $180,518 $ 41,487 $154,121 4 38,531 Sick leave credit .............. 12.665 448.828 91.164 364.655 TOTALS ................. $193,183 $490,315 $245,285 $403,186 23 g
m,
,e,- u., , ,., - , - - - , +
s UTILITIES COMMISSION , CITY OF NEW SMYRNA BEACH, FIDRIDA NOTES TO THE FINANCIAL STATEME!rIS September 30, 1989 and 1988 Page 17 of 21 L
- 9. REOUIRED PAYMENT TO THE CITY OF NEW SMYRNA BEACH. PLORIDA The legislation that created the Utilities Commission requires it to pay to the general fund of the City of New Snyrna Beach a sum equal to six percent
( (6%) of the gross revenues from utilities under Commission control. This payment is subordinate to the debt service requirement of all utilities revenue certificates and is recorded as a quasi external transaction for { financial reporting purposes. The amount paid to the City totaled
$1,589,082 and $1,481,102 for the years ended September 30, 1989 and 1988, respectively. The balance due J:o the City at September 30, 1989 and 1988, totaled $173,875 and $287,815, respectively.
- 10. EMPLOYEE PENSION PLAN
{ The Utilities Commission contributes to the Florida Retirement System of the State of Florida, an agent multiple employer public employee retirement system that acts as a common investment and administrative agent for j municipalities in the State of Florida. The payroll for employees covered I by the System for the year ended September 30, 1989, was $4,380,976. Total payroll for the year was $4,488,871. { All full time employees are eligible to participate in the plan. All participating employees, upon attaining their normal retirement age (age 62), with 10 years of credited service are entitled to a retirement benefi* payable monthly for life of at least 1.6%, but not more than 1.68% of their average final compensation for each year of credited service. The average final compensation is the average annual compensation of the 5 highest years of compensation during creditable service prior to retirement. Benefits fully vest on reaching 10 years of creditable service. The plan also provides for death and disability benefits. The funding methods and determination of benefits payable are provided in the various acts of the Florida Legislature, which created the fund, including subsequent amendments thereto. In previous years, these acts-provided, in general, that funds were to be accumulated from employee i contributions, employer contributions, State appropriations and income from ! investments of accumulated funds. The act also provides that, should the { accumulated funds in the fund at any time be insufficient to meet and pay l the benefits due, the employer shall supplement the funds by an appropriation from current funds, or from any revenues which may lawfully be ,
.used for said purposes, in an amount sufficient to make up the deficiency.
The Utilities Commission's contribution to the plan during the year ended September 30, 1989, totaled $618,929 which was 13.38% of the qualifying employees' gross wages for the period from October 1, 1988 through December 31,1988, and 14.38% for the period from January 1,1989 through September 30, 1989. The " pension benefit obligation" is a standardized disclosure measure of the-present value of pension benefits, adjusted for the effects of projected salary increases and step rate benefits, estimated to be payable in the 24
UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA l NOTES TO THE FINANCIAL STATEMENTS September 30, 1989 and 1988 Page 18 of 21 i
- 10. EMPLOYEE _ PENSION PIAN (Continued) future as a result of employee service to date. The measure, which is the actuarial present value of credited projected benefits, is intended to help users assess the plan's funding status on a going concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among public employee retirement systems and employers..
The plan does not make separate measurements of assets and pension benefit obligation for individual employers. The estimated pension benefit obligation at July 1, 1988, was computed based upon assumptfons determined through an actuarial valuation performed as of June 30, 1987. Significant actuarial assumptions used in the valuation include (a) a rate of return on the investment of present and future assets of 8.0%, (b) projected annual salary scale increases of 7.5%, (c) projected annual payroll growth of 7.0%, and (d) no post retirement benefit increases. The total unfunded pension benefit obligation (estimated) applicable to the Commission's employees is not separately determined by the actuary. The estimated pension benefit obligation was $23.4 billion for the plan as a whole. The plan's not assets available for benefits on that date (valued at market) were $14.0 billion, leaving an unfunded pension benefit obligation of $9.4 billion. The representative amount of the Commission's 1988 contribution to the plan was not provided by the plan administrator, however, it is tot significant in relation to the total contributions , required of all participating entities. : Ten year historical trend information showing the plan't progress in i accumulating sufficient assets to pay benefits when due is obtainable from , the State of Florida, Department of Administration, Division of Retirement, j
- 11. SECMENT INFORMATION t
The Commission provides electric, water and pollution control services to . the public. The following is a summary of the segment information for the Ei electric, water, and pollution control systems: E, Pollution Electric Water Control
- System .
System System Total Operating revenue $20,841,500 $ 3,184,987 $ 2,390,120 $26,416,607 ; Depreciation 1,277,889 396,269 538,083 2,212,241
- Operating income (loss) 1,201.721 676,188 44,023 1,921,932 ,
Required payments to ' City of New Smyrna Beach 1,256,840 189,685 142,557 1,589,082 . Net income (loss) (80,411) 261,767 (118,149) 63,207 ; Contribution in aid of Construction 410,273 5,196,160 12,933,768 18,540,201 . Utility plant acquisitions 1,438,980 547,037 173,227 2,159,244 Utility plant retirements 142,218 32,203 10,247 184,668 Revenue certificates payable 21,055,700 10,082,700 6,291',600 37,430.000 ! i Utility equity 6,401,483 7,691,820 11,820,374 25,913,677 Total assets 35,540,686 16',919,179 17,993,975 70,453,840 25 r Il:
t ( UTILITIES COMMISSION , ( CITY OF NEW SMYRNA BEACH, FLORIDA NOTES TO THE FINANCIAL STATEMENTS September 30, 1989 and 1988 Page 19 of 21 '
- 12. LEGAL MATTERS The Utilities Commission is engaged in routine litigation incidental to the conduct of its municipal utilities affairs. In the opinion of the Counsel to !
( the Commission, no legal proceedings are pending against the Commission not covered by insurance which would inhibit the Commission's ability to perform its operations or materially affect its financial condition.
- 13. COMMITMENTS ,
- a. Acting through the Florida Municipal Power Agency (FMPA), the Utilities Commission is a participant in a portion of. Florida Power and Light Company's (FPL) St. Lucie Unit No. 2, a nuclear generating unit with an i original estimated net capability rating of 802 MW. St. Lucie Unit No. 2 i was subsequently uprated and now has a seasonally adjusted rating of approxi'sately 840 MW FMPA issued St. Lucie Project Revenue Bonds, Series 1983, in the amount of $290,000,000, which were subsequently partially refunded by $284,810,000 St. Lucie Project Refunding Revenue Bonds, Series 1986 (together, the "St. Lucie Project Bonds"), for an 8.806% undivided ownership interest of St. Lucie No. 2 together with rights to receive '
electric capacity and electric energy under a reliability exchange agreement. The Utilities Commission's participation providta for a 9.884% entitlement share of FMPA's 8.806% undivided ownership inte: ~nt. A reliability exchange agreement provides for FMPA's exchanging 50% of its output from St. Lucie No. 2 for a like amount from St. Lucie No. I to mitigate the potential for economic loss resulting from an extended or permanent outage of St. Lucie No. 2, The Ucilities Commission is not directly obligated to pay the St. Lucie > Project Bonds and neither the faith and credit nor the taxing power of the l City of New Smyrna Beach is pledged to payment of the St. Lucie Project Bonds. l The Utilities Commis.sion, as a participant, has entered into a power sales contract which requires paynent on a "take and pay" basis for the Utilities Commission's entitlement share of the project capability for the St. Lucie Project _ for each month during any portion of which electric , capacity and electric energy are available to the Utilities Commission from the St. Lucie Project, including electric capacity and electric energy under the reliability exchange agreement with FPL. In the event payment is not required for any toonth under the Utilities Commission's power sales contract, it is required to make payment for such month under its project support contract on a "take or pay" basis. The payment under i the project support contract would be the amount the Utilities Commission would have been required to pay under its power sales contract for such month if any electric capccity and electric energy from the St. Lucie ; l Project had been made available to them. l As a resuit of these agreements, the Utilities Commission is obligated to i provide payments of approximately $3.4 milli.on annually. l 26
UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA NOTES TO THE FINANCIAL STATEMENTS September 30, 1989 and 1988 Page 20 of 21
- 13. COMMITMENTS (Continued)
- b. On October 14, 1988, the Commission entered into an agreement with FPL regarding the future short term and long-term electric transmission needs of the Commission. Pursuant to the agreement, FPL will modify and upgrade certain existing FPL electric transmission facilities currently providing electric energy to the Commission. The cost of the improvements (not to exceed $250,000), will be reimbursed to FPL by the Commission, without interest, in twenty.nine equal monthly installments commencing in January, 1990,
- c. On August 18, 1989, the Commission simultaneously entered into a construction agreement and a related fifteen year lease agreement with Florida Power Corporation (FPC) which provides for the construction and subsequent leasing of 115 kv transmission facilities connecting-their respective control areas with the Commission's Smyrna substation facility.
Under the agreements, the lease will become effective when construction of the transmission facilities between the FPC tie point and Smyrna
. substation are completed and placed in service (currently expected to be May, 1992). The agreements also specify that the Commission has the option to putchase the transmission facilities at any time after the first year of the lease at a cost of $3.8 million. -The lease provides for minimum monthly lease payments of $52,060, and includes a provision for insurance and real estate taxes levied against the facilities. '
- d. In the year 2008, the Utilities Commission's share of decommissioning costs applicable to its participation in Florida Power Corporation's (FPC)
Crystal River Unit No. 3, a nuclear generating unit .is expected to be i t approximately $4,0 million. An operating reserve has been established to account for these estimated costs. Funding of the reserve began in 1985 and, based on currently revised estimates, the Commission is expected to fund the reserve with paymentr of approximately $85,000 annually. Based on an assumed interest rate oi 6% per annum, these annual payments, plus the l eerest earned thereon, is expected to be sufficient to meet the B Commission's portion of the estimated future decomriisioning costs. 3
- c. At September 30, 1989, the Utilities Commission had additional unrecognized construction contract commitments of approximately $3.1 -
million for utility plant expansion and upgrading,
- f. Amounts received or receivable from grantor agencies are subject to audit E and adjustment by grantor agencies, principally' the federal and state 3 governments. Any disallowed claims, including amounts already co11ceted, may constitute a liability of the Commission. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the government expects such amounts, if any, to be immaterial.
27 1 1 4
-, .. - - ~. -
UTILITIES COMMISSION CITY OF NEW SKYRNA BEACH, FLORIDA , ,l NOTES TO THE FINANCIAL STATEMENTS 3 September 30, 1989 and 1988 Page 21 of 21 i ' l 14, SUBSEQUENT EVENTS [ On September 20, 1989, the Conmission authorized the issuance of $15 million in Utilities Commission, City of New Smyrna Beach, Florida, Utilities System ! Revenue Certificates, Series 1990, to finance a portion of the cost of implementing the first phase of the Commission's Five Year Capital ; Improvements Plan. These revenue certificates were authorized by the ! ( Commission for validation pursuant to Resolution No. 1 88, adopted on ! February 9, 1988, and are scheduled for' sale in January, 1990, f l On November 15, 1989, the Commission approved Resolution No. 5 89 authorizing ; the validation of an additional $15 million in revenue certificates to finance a portion of the second phase of the Commf :sion's Five Year Capital Improvements Plan. The validation of this certificate sale has been ,
- scheduled for public hearing during December, 1989, i 1
,II : l e r l l 'll ; .Il , lll lll 1 I 1 l i
?
i 28 .
, -- - - -*a
..- ..-- . .-.-. ._- .~.-.. ..-- ...-.--- ~~-- - -._. .. - -. -. .
i, I ! I l SUPPLEMENTAL INFORMATION , i I This section is composed of the following ttu parts: ' SUPPLEMENTAL DETAIL INFORMATION OF THE ELECTRIC. WATER AND POLLUTION CONTROL SYSTEMS STATISTICAL SECTION f it 4 I . h I
~
I :
h I l [
- I i l
I SUPPLEMENTAL DETAIL INFORMATION OF T5tE ELECTRIC, ' WATER AND POLLUTION CONTROL iSTEMS ;
- I l
l These financial statements provide, a more detailed view of .- the "Ceneral Purpose Financial Statements" presented in the . preceding subsection. Resolution Numbers 16-75 and 28-78 established the electric, I water and pollution control systems as a single enterprise fund. These statements are presented to provide detailed information on the individual electric, water and pollution I control utility systems and to comparisons and are not necessary for a fair presentation'in conformity with generally accepted accounting principles. present the budgetary- ' s I , i I - l l I !
?
.b I :
e 5
'c-4 s._ .', , --.- _ , .._..,.._m.,_ _ - , , . , . , . ,,......4 mw. ., , .--. .e..,,_ -
i UTILITIES COPMIS$10N Sehedule 1 CITY OF NEW SHYRh4 SEACEl, FLORIDA SOHEDULE OF REVENUES, EKrENSES AND C11ANGES IN RETAINED EARNINGS For the Fiscal Year Ended September 30, 1989 1 I With Casperative Actual Amounts for the Fiscal Year Ended September 30, 1988 Electric Water Pollution Control 1989 Tctale 1988 j i OPDATING. ELTINVrh i a sales $20,678,492 $ 3,093,924 $ 2.383.118 $26,355,$34 $24,180,899 I Other revenues 163.008 91.063 7.002 261.073 261.866 , i I TOTAL OPERATING REVENUES 20.841.500 3.184.987 2.390.120 .26.416.607 24.442.765 j OPERATING EXPEhSEst Product 4on empenses 13,170,913 732,619
- 13,903,532 12,780,038 Transmission, distribution and sewate Collection and treatment 1,400,258 34$,107 '1,0$0,064 2,795.429 2,6 9 ,153 (
Custnmer secountina 400,615 160,646 98.949 660,210 647,001 Administrative and Seneral 1,824,421 684,473 516,444 3,025,338 2.888,994 Required payments to the City of I New Seyrna Beach 1,2S6,840 189.68S 142,S57 1.589,082 1,481.102 : State utilities tam 308,843 *
- 308,843 291,187 Depreciation }
1.277.889 396.269 538.083 2.212.241 2.119.675 _ k TOTAL OP13tATING EKPENSES ,Jf.639.779 2.508.799 2.346.097 24.494.475 22.865.150 , OPERATING INCOME (LOSS) 1.201.721 676.185 44.023 1.921.932 1.577.615 L ADDE NONOPERATINO REVENUESr Interest earnin8s 209,973 310,814 289.3f1 818,148 668 ',35 Other inecae 163,178 22,907 2,495 190,580 *a2,062 Gain on disposal of assets 5.099 1.274 - 6.373 6.421 MTAL NONOPERAT!!C REVENUES 380.250 342.995 291.856 1.015.101 826.838 TOTAL INCOME (1055) 1.581.971 1.019.183 335.879 '2.937.013 2.404.453 LFSSr NONOPrRATINO EXI'ENSTSr Interest and debt empense 1.560,411 723,344 453,a62 2.737,217 2.775,470 Other empenses 49,701 34,072 - 83,773 37,730 Loss on disposal of assets 52.270 566 8.732 SP A TOT /L NONOPERATING EXPENSES 1.662.382 757.416 454.028 2.873.826 2.821.932 NET INCOME (14S8) (80,411) 261,767 (128,149) 63,207 (417,479) l RETAINED EAbifNGS - BFCINNING OF YEAR 5.071.621 2.233.893 ,, (995.245) 7.310.269 7.727.748 kPTAINTD EARNINC$ l'Nb 0F _ YEAR $ S,991,210 $ 2,495,660 $(1,113,394) $ 7,373,476 4 7,310,269
,,, _ i
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UTILITIES COMMISSION Schedule 2 I; : CITY OF NEW SKYRNA BEACll, TLORIDA SCllEDULE OF REVENUES, RECEIPTS AND EXPENSES ELECTRIC SYSTEM (NON CAAP BUDCETARY BASIS) BUDGET AND ACTUAL I' l For the. Fiscal Year Ended September 30, 1989 j Variance Favorable B Budret Actual (Unfavorable) g, REVENUES AND RECEIPTS: Direct Sales- l Electric sales $21,350,386 $20,678,492 ($671,894) W Other revenues 174,000 163,008 (10,992) Nonoperating revenue: 3' Interest earnings 161,000 209,973 '48,973 g Other revenues (expenses) 120.000 '115.477 (4.523) - TOTAL REVENUES AND RECEIPTS 21.805.386 21.166.950 (638.436) , OPERATING EXPENSES! > Power production and fuel 13,651,369 13,170,913 480,456 g* Transmission and distribution 1,295,377 1,400.,258 (104,881) g Customer accountit,g 419,363 400,615 18,748 Administrative and general 2,006,674- 1,824,421 182,253 g, Required payments to the City i of New Smyrna Beach 1,291,463 1,256,840 34,623 gl ' State utilities tax 320.256 308.843 11.413 TOTAL OPERATING EXPENSES 18.984.501 18.361.890 622.612 > NET REVENUES AND RECEIPTS 2.820.884 2.805.060 (15.824) g OPERATING TRANSFERSt gi Sinking Funds: . 1978 Certificates (1,006,162) (1,006,162) - 1986 Certificates (544,235) (544,275) - 1987 Certificates (329,265) (331,515) (2,250) FMPA Pooled Loan (91.542) (91.541) - (1.971.204) (1.973.454) (2.250) Renewal and Replacement Funds: Required contribution (1,163,607) (1,163,607) *' E Unallocated fund contribution 316.920 316.920 - (846.687) (846.687) - E^ TOTAL OPERATINO TRANSFERS (2.817.891) (2.820.'141) (2.250) ; BUDGETED NET CASil RECEIPTS $ 2,993 (15.081) $ (18,074) I; 9 30 :
s r UTILITIES COMMISSION Schedule 2 L CITY OF NEW SMYRNA BEACH, FLORIDA Page 2 of 2 SCHEDULE OF REVENUES, RECEIFTS AND EXPENSES - BUDGET AND ACTUAL EiFTRIC SYSTEM (NON CAAP BUDGETARY BASIS) For the Fiscal Year Ended September 30, 1989 Variance Favorable Budcet Actual (Unfavorable) ADDITIONS (DEDUCTIONS) REOUIRED TO RECONCILE NET CASH RECEIPTS TO NET INCOME (CAAP BASIS)! : Principal portion of required Sinking Fund transfers $ 425,144 Excess Sinking Fund transfers 41 .'11 Net transfers to kenewal and am Replacement Fund 846,687 ~ Cain (loss) on disposal of ~ property and equipment (47,171) Depreciation (1,277,S89) -- Amortization of debt expense (53.812) TOTAL ADJUSTMENTS (65.330) NET INCOME (IASS) $ (80,411) h m
=
31
UTILITIES COMMISSION Schedule 3 CITY OF NEW SMYRNA BEACil, F14RIDA SCHEDULE OF REVENUES, RECEIPTS AND EXPENSES BUDGET AND ACTUAL VATER SYSTEM (NON.CAAP BUDGETARY BASIS) For the Fiscal Year Ended September 30, 1989 Variance Favorable Budcet Actual (Unfavorable) REVENUES AND RECElPTS Direct Sales: Water sales $ 3,046,000 $ 3,093,924 $ 47,924 l g Other revenues 106,600 91,063 (15,537) Nonoperating revenue: Interest earnings 226,800 318,814 92,014 other revenues (expenses) 143,000 (11,165). (154,165) Connecticn fees 400.000 501.445 101.445 TOTAL REVENPc,S AND RECEIPTS 3.922.400 ._3.994.081 71.681 OPERATING EXPENSES! Water production 752,318 g4 732,619 19,699 g Transmission and distribution 312,007 345,107 (33,100) Customer accounting 170,318 160,646 9,672 Administrative and general 770,254 684,473 85,781 Required payments to the City of New Smyrna Beach 187.896 189.685 (1.789) TOTAL OPERATING EXPENSES 2.192.793 2.112.530 80.263 NET REVEa/UES AND RECEIPTS 1.729.607 1.881.551 151.944 OPERATING TRANSFERS! Sinking Funds: 1978 Certificates (562,224) (562,224) . 1987 Certificates (351,216) (353,616) (2,400) FMPA Pooled Loan (61.655) (61.655) ., Renewal and Replacement Funds: Required contribution (306,127) .(306,127) . Restricted fund contribution _ (400.000) (501.445) (101.445) (706.127) (807.572) (101.445) TOTAL OPERATING TRANSFERS (1.681.222) (1.785.067) (103.845) BUDGETED NET CASH RECEIPTS $ 48,385 96.484 $ 48,099 I 32 _ ___m
UTILITIES COMMISSION Schedule 3 , CITY OF NEW SKYRNA BEACll, FLORIDA Page 2 of 2 SCl!EDULE OF REVENUES, RECEIPTS AND EXPENSES - BUDGET AND ACTUAL WATER SYSTEM (NON G4.AP BUDGETARY BASIS) For the Fiscal Year Ended September 30, 1989 - Variance i L Favorable
.. Budtet Actual (linf avorabl ei ADDITIONS (DEDUCTIONS) REOUIRED TO ltECONCILE NET CASil RECEIPTS TO LET INCOME (CAAP BASISit Connectic,:s fees (501,445)
Principal portion of required Sinking Fund transfers 289,410 ' Excess Sinking Fund transfers (12,097) ( liet transfers te. Renewal and L Replacement Fund 807,572 Gain (loss) on disposal of g property and equipment W 1,274 ( Depreciation (396,269) Amortization of debt expense (23.162). TOTAL ADJUSTMENTS 165.283 {_ NET INCOME (LOSS) $ 261,767 g [ [ l ( ( l l 33
UTILITIES COMMISSION Sthedule 4 CITY OF NEW SMYRNA BEACH, FLORIDA SCHEDULE OF REVENUES, RECEIPTS AND EXPENSES BUDGET AND Act'r. TOLLUTICA CONTROL SYSTEM (NON.CAAP BUDGETARY BASIS) For the Fiscal Year Ended September 30, 1989 Variance Favorable Budret Actual (Unfavorable) FilENUES AND RECEIPTS! Direct Sales: Pollution control charges $ 2,470,000 $ 2,383,118 $ (86,882) Other revenues 8,000 7,002 (998) Nonoperating revenue: Interest earnings 166,500 289,361 122.861 Other revenues (expenses) 4,000 2,495 (1,505) Connection fees 270.000 459.189 189.189 TOTAL REVENUES AND RECEIPTS 2.918.500 3.141.165 222.665 QfERATING EXPENSES! Collection and treatment system 1,062,978 1,050,064 12,914 Customer accounting 104,479 98,949 5,530 Administrative and general 629,094 516,444 112,650 Required payments to the City of New Smyrna Beach 148.200 142.557 5.643 TOTAL OPERATING EXPENSES 1.944.751 1.808.014 136.737 NET REVENUES AND RECEIPTS 973.749 1.333.151 3$9.402 OPERATING TRANSFERS: Sinking Funds: ' 1978 Certificates (517,788) (517,788) - l 1987 Certificates (51,219) (51,569) (350) FMPA Fooled Loan (55.803) (55.803) - (624.810) (625.160) (350) Renewal and Replacement Funds: Required contribution (145,864) (145,864) - Restricted fund contribution (270.000) (459.189) (189.189) (415.864) (605.053) (189.1Jp) l Sewer Assessments Fund: Contribution for operations 70.000 70.000 - TOTAL OPERATING TRANSFERS (970.674) (1.160.213) (189.539)' BUDGETED NET CASH RECEIPTS $ 3,075 172.938 $ 169,863 34
N UTILITIES COMMISSION Schedule 4 s CITY OF NEW SMYRNA BEACH, F14RIDA Page 2 of 2 SCHEDULE OF REVENUES, RECEIPTS AND EXPENSES BUDGET AND ACTUAL POLLUTION CONTROL SYSTEM (NON CAAP BUDGETARY BASIS) s For the Fiscal Year Ended September 30, 1989 Variance I Favorable L Budget Actual (Unfavorable) ADDITIONS _(DEDUCTIONS) REOUIRED TO ( RECONCILE NET CASH RECEIPTS TO NET INCOME (CAAP LASIS)! Connection fees S (459,189) { Principal portion of required Sinking rund transfers 140,446 Excess Sinking Fund transfers 45,709 r Net transfers to Renewal and { Replacement Fund 605,053 Transfer from Sewer Assessment Fund (70,000) ( Cain (loss) on disposal of property and equipment (566) Depreciation (538,083) Amortization of debt expense (14.457) TOTAL ADJUSTMENTS (291.087) { SET INCOME (LOSS) $ (118,149) i 35
f UTILITIES COMMISSION Schedule 5 CITY OF NEW SMYRNA BEACH, FLORIDA SCHEDULE OF OPERATING EXPENSES ELECTRIC SYSTEM For the Fiscal 'lears Ended September 30, 1989 and 1988 1989 1988 Power Production and Fuel: I Nuclear Power Generation: Fuel $ 53,203 $ 153,988 Operation 329,123 298,530 Maintenance 427.916 403,504 Diesel Power Generation: Fuel 469,746 367,878 Operation 521,581 497,999 Maintenance 84,037 91,081 Other Power Supply: Purchased power 10,978,917 9,941,932 System control and load dispatchir.g 306.390 282.814 g 13.170.913 12.037.726 g Transmission and Distribution: Operation 1,013,560 1,037,593 Maintenance 386.698 311.172 1.400.258 1.348.765 Customer Accounting: Operation 400.615 394.790 Administrative and General: Operation 1,669,856 1,610,757 Maintenance 154.565 131.709 1.824.Q1 1.742.466 Reautred Payments to the City of New Smyrna Beach 1.256.840 1.187.019 State Utilities Taxes 308.843 291.187 Det reciation 1.277.889 1.224.606 TOTAL OPERAYWJ EXPENSES $19,639,779 $18,226,559 I I Il, 36 I !
I UTILITIES COMMISSION Schedule 6 CITY OF NEW SMYRNA BEACH, FIhRIDA SCllEDULE OF OPERATING EXPENSES WATER SYSTEM I For the Fiscal Years Ended September 30, 1989 and 1988 1989 1988 Water Production? Source of Supply: Operation S 62,911 $ $6,607 Maintenance 6.728 '1,926 Pumping: I Operation Maintenance 163,133 7,796 142,329 10,985 Water Treatment: '* I Operation Maintenance 482,073 9.078 732.619 515,185 15.280 742.312 Transmission and Distribution! Operation 311,820 265,837 Maintenance 33.287 27.533 345.107 293.370 Customer Accounting! Operation 160.646 158.096 Administrative and General Operation I Maintenance 644,670 39.803 684.473 605.855 40.910 646.765 Reauired l'avments to thf City of New Smyrna Beach 189.685 180.950 DepreciatiSD 396.269 367.515 TOTAL OPERATING EXPENSES $ 2,508,799 $ ?,38 08 I 37
I UTILITIES COMMISSION Schedule 7 I! CITY OF NEW SMYRNA BEACH, FLORIDA SCHEDULE OF OPERATING EXPENSES I;' POLLUTION CONTROL SYSTEM For the Fiscal Years Ended September 30, 1989 and 1988 1989 1988 i __ j Collection and Treatment System! Collection and Pumping Expenses: Operation $ 368,648 $ 388,280 Maintenance 74,779 31,051 ] Treatment and Disposal Expenses: , Operation 582,454 564,017 1 Maintenance 24.183 31.670 1.050.064 1.015.018 1 Customer Accountinci Operation 98.949 94.115 ' Administrative and General Operation 487,322 470,034 Maintenance 29.122 29.729 , 516.444 499.763 Reauired Payment to the City of New Smyrna' Beach 142.557 113.133 Devreciation 538.083 527.554 TOTAL OPERATING EXPENSES $ 2,346,097 $ 2,249,583 I j l l i I l I I 38 l g 5:
>- - *- +~a
eq.iui ' I UTILITIES COMMISSION Schedule 8 CITY OF NEW SMYRNA BEACH, FLORIDA SCHEDULE OF INTEREST EARNINGS For the Fiscal Years Ended September 30, 1989 and 1988
=
1989 1988 INTEREST EARNINCS BY SOURCE: From Investments: I Sinking funds Renewal and replacement funds Customers' deposits
$ 338,776 322,625 57,268 m
$ 287.130 253,372 31,417 Other 71.012 58.121 I .- From Assessments 789,681.
28.467 630,040 38.31$ I TOTAL INTEREST EARNINGS $ 818,148 $ 668,355 I INTEREST EARNINGS BY SYSTEM! Electric system Water system
$ 209,973 318,814
$ 189,191 249,235 Pollution control system 289.361 229.929 TOTAL INTEREST EARNINGS $ 818,148 $ 668,355 I
I I I I
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I k i i i I 4 STATISTICAL SECTION ( I 5 i Statistical tables differ from financial statements because i they usually cover more than one fiscal year and may present j I non accounting data. These tables reflect social economic data and financial trends Commission, City of New Smyrna Beach. of the Utilities and ; l I I *; i, I t I l i I t 4>
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I: UTILITIES COMMISSION Table 1 CITY OF NEW SMYRNA BEACll, FLDRIDA SCllEDULE OF EXPENSES BY FUNCTION LAST TEN FISCAL YEARS ! SEPTEMBER 30, Operatine Excenses Required I
~ Transmission, Adminis- Payments l Distribution trative to City of Fiscal Total Production and . Customer and New Smyrna E' Year Exnenses Excenses Collection Accountinc General Beach 3 1980 $11.121,048 $ 5,347,656 $ 980,960 $ 259,025 $1,213,890 $ 598,205 l 1981 12,284,939 5,744,288 1,113,301 304,241 1,612,993 705,868 1982 14,921,572 7,297,762 1,409,742 315,595 1,776,286 826,719 1983 16,968,400 8,241,667 1,420,397 400,372 2,079,755 877,629.
1984 18,388,070 8,686,618 1,710,284 496,921 2,214,716 1,047,779 { 1985 20,725,373 10,637,456 1,868,923 547,952 2,311,726 1,122,521 1986 21,451,417 10,631,343 2,044,229 565,057 2.581,264 1,209,499 ! l 1987 24,012,890 11,962,054 2,430,767 614,138 2,856,752 1,301,571 ' l 1988 25,687,082 12,780,038 2,657,153 647,001 2,888,994 1,481,102 , 1989 27,368,501 13,903,532 2,795,429 660,210 3,025,338 1,589,082 1 40 Ij
I I Doeratine Exnenses Nonoceratine Exnenses I i State Total Interest Other Total i Utilities Operating and Debt Nonoperating Nonoperating Tax Deereciation Exnenses Expense Excens,es Exnenses
$ 55,155 $ 962,197 $ 9,417,088 $ 1,703,960 $ . $ 1,703,960 ;
l
- $7,196 1,008,326 10,546,213 1,527,731 210,995 1,738,726 l
i 84,350 1,284,052 12,994,506 1,927,066 - 1,927,066 - 84,181 1,515,523 14,619,524 2,314,563 34,313 2,348,876 145,297 1,604,757 15,906,372 2,465,284 16.414 2,481,698 170,406 1,625,220 18,284,206 2,376,681 64,486 2,441,167 241,059 1,674,114 18,946,565 2,421,468 83,384 2,504,852 ' 243,184 1,885,382 21,293,848 2,583,191 135,851 2,719,042 291,187 2,119,675 22,865,150 2,775,470 46,462 2,821,932
;08,843 2,212,241 24,494,675 2,737,470 136,609 2,873,826 I
l' L 41 i
t UTILITIES COMMISSION Table fI CITY OF NFW SMYRNA BEACH, FLORIDA SCHEDULE OF REVENUES BY SOURCE I IAST TEN FISCAL YEARS ! SEPTEMBER 30, ! Operatine Revenues Pollution Fiscal Total Electric Water Control i Ar Revenues System System System Total 1980 $ 11,457,983 $ 8,128,944 $ 1,143,160 $ 861,954 $ 10,134,058 ; 1981. 13,218,442 9,810,442 1,154,658 1,020,688 11,985,788 f 1982 14,937,949 11,152,100 1,456'125
, 1,111,216 13,719,441 1983 16,541,534 12,026,330 1,980,611 1,178,922 15,185,863 ;
1984 19,010,464 13,800,387 2,430,016 1,291,324 17,521,727
'i 1985 20,792,509 15,473,671 2,615,605 1,446,702 19,535,978 1986 21,204,306 15,743,029 2,735,021 1,754,963 20,233,013 -
1987 23,575,256 17,714,974 2,925,916 1,831,044 22,471,934 1988 25,269,603 19,467,476 3,050,904 1,924,385 24,442,765 i 1989 27,431,708 20,841,500 3,184,987 2,390,120 26,416,607 t I l I i 42 [ t
, Nononeratinr. Revenues Interest Other
, Earnings ' Income Total
$ 1,153,818 $ 170,107 $ 1,323,925 l i
1,010,548 222,106 1,232,654 j 1,111,615 106,893 1,218,508 1,144,035 211,636 1,355,671 . I 1,076,576 412,161 1,488,737 l i 1,091,630 164,901 1,256.531 1 818,337 152,956 971,293 ,
-i
, 665,119 438,203 1,103,322 j 668,355 158,483 826,838 '
818,148 496,953 1,015,101 l l mg - 43
I, , UTILITIES COMMISS7ON- . Table-1II CITY _0F NEV S{lYRNA BEACH, FLDRIDA ~ DEMOGRAPHIC STATISTICS 1AST -TEN FISCAL YEARS SEPTEMBER 30, New Smyrna-Beach's Per County- School (5) g-Fiscal Estitaated Population Capita. Income Unemployment Rate Percent g' Year (1) (3) -(4) _ Enrollment Attendance- - 3 1980 13,310 .$ 8,139 6.5%. 3,391 95% Bf 1 1981 13,634 4.8 3,375 gj 9.057 96-1982 13,653 9,734 (4) g; - 6.8 3,318 96 l a 1983 13.829 10.,220 (2) 6.7 3.669 97-1984 14,104 (2) 10,6?9 (2) 3 .,2 3,710 97 'l 1985 14,697 ('f) 11,593 (2) 4.4' 3;362 97 Ij! 1986 15,000 (2) '11,719 (2)~ 5 '. 0 4,123 96 ; 1987 15,344 11,71'9 (2) 4.9 4 ~,219 .96 1988 15,647 11,800 4.4 4,240 94 1989 17,266 13,401 4.5 4,445 95' (1) Obtained from Ustiversity of Florida, Bureau of' Economics and Business - Research, t (2) Estinated, actual amounts not available. (3) Obtained from U.S. Department of Commerce, Bureau.of Economic Analysis. . 4 (4) State of Florida, Department of Labor and Employment Security. (5) Volusis County School Board - includes grades K-12, Coronado Beach g ' Elementary, Chisholm Elementary, New Smyrna Beach Middle' School, New ' 'g- , Smyrna Peach Senior High, Read Pattillo Elementary ,snd Sacred Heart, . a private school. l
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UTILITZES COMMISSION Table IV CITY OF NEW SMYRNA BEACH, FLORIDA . PROPERTY VALUE, CONSTRUCTION-AND BANK DEPOSITS (1) 1AST TEN FISCAL YEARS SEPTEMBER 30 Savings construction and-Number Value Bank Loan Fiscal of of Deposits Deposits Assessed Year Perm 2ts construction (000's) (000's) Value '
.1980 58? $ 21,103,303 $ 93,460 $ 167,018 $ 246,627,345 1981 539 25,229,289 100,676 182,271 315,992,191 .
1 1982 550 >11,111,417 104,324 192,305 421,495,317 1983 '718 23,730,247 123,924 222,419- 479,806,754-1984 937 35,666,534 144,154 260,142 550,410,029
]
1985 2,006 32,782,563 166,126 267,464 632,540,204 1 i 1986 2,286 _26,095,656 192,712 251,404 711,561,352 ! 1987 2,501 26,927,079 185,428 306,928 763,718,138 1988 2,246 30,639,766 190,477 284,244- 834,037,543-1989 2,502 23,381,587 244,312 228,568 894,693,552 Souremal ! Construction - City of New Smyrna Beach, Florida Building Department Deposits - Confirmed directly by banks and savings and loan associations Assessed value - Volusia County, Florida Finance Department ,' (1) The above data is related exclusively to area within the municipal limits of the City of New Smyrna Beach, Florida l 1 e 45 l [
UTILITIE9-COMMISSION: Table V-CITY OF NEW SMYRNA BEACH, FLORIDA ] Page 1 of 2 : ;-; SCHEDULE OF. INSURANCE IN FORCE September 30,.1989 [ Coverage and Policy- Policy . Liability. Insurine Comoany Number Period Details of Coverace Limits Comprehensive General Liability Netmeg Insurance Co. 21CENSK1693 12-01 88 Combined bodily L $1,000,000' .i 12-01-89 injury and property - H damage-Business M g. Twin City Fire-Insurance Company 21CESSK4315 12-01-88 Liability' $1,000,000 gj 1 12-01 bodily injury -- and property combined Comprehensive Actual-cash g value less: 31
$250 deductible l l
Collision Actual cash i value less
$250 deductible -
Uninsured motorist- '$100,000 No~ fault Statutory Business Pronerty American Cuarantee , I and Liability Insurance Co. CPO 330-86-70-03 12-01-88 Buildings and- ;
$15,126,093 . -
~
12-01-89 contents with $10,000 i deductible and 90% co- ' insurance ' Accounts receivable $850,000 with '
$500 deductible i
Valuable papers $100,000 with ' and records $500 deductible - Contractors' $422,833 with-equipment $500 deductible Computer $160,000 with' equipment $500 deduetible-l l 46 I i
mm
- UTTLITIES COMMISSION Table V CITY OF NEW SKYRNA. BEACH, FLORIDA Page 2 of 2 SCHEDULE OF. INSURANCE IN F0ltCE 1entember 30. 1989 Coverage and Policy Policy insurine Comoany Liability Number Period Details of Coverace Limits Crime Aetna Casualty and Surety Conpany 35BY100539780 12 01 88 Employee crime $100,000 i
BCA 12-01'89. $1,000 deduct-ible Money and securities $ 50,000 Counterfeit currency $ 5,000 Depositors' forgery $100,000~ Boiler and Machinerv Great Northern Insurance Company 7827 4432 9-30-89 Breakdown due to $5,000,000 with 9-30 90 accident $10,000 deduct-ible
-Nucicar Enercy Damage American Nuclear ;
Insurance and j Hutual Atomic ' Energy Liability Underwriters and Nuclear Electric Insurance Ltd, 5213 & TA5244 10 09-88 Primare -'aperty $500 million 10 09 4 X87187 & X87015 11-15 88 Excess property $845 million , 11-15 89 (Excess of $500 million) ' 1 NF195 & MF91 1-01-89 Primary liability ;$160 million s 1 01-90 NS347 & MS65 12-31-88 Suppliers and $160 million ; 12-31-89 transporters liability ' a N 35 & M 35 1-01 89 Secondary financial $30 million-per i 1-01-90 protection occurrence NW103 & NW62 1-01-89 Master Workers Torts $160 million 1-01-90 per occurence Public Officials and and aggregate Employees Liability International Surplus , Lines Ins. Co. ! 106409D443 7-28-89 Liability $500,000 7-28-90 retentions ]
$10,000/ loss Workers' Comnensation ;
Florida Municipal Self-Insurers' Fund 109 10-01-89 Statutory coverage Statutory i 10 01-90 Employers liability $100,000
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UTILITIES COMMISSION -TABLE VI-CITY OF NEW SMYRNA BEACH, FLORIDA i TEN LARGEST WATER CUSTOMERS, September:30, 1989 j Revenues Billed'
~
l Consumntion l-Percent Percent' 'i Gallons of . . of , (000's) Total Amount Total
- 1. Brandywine' Enterprises 20,016 '1,66% $ 27,164 0,88%. .
2~ Cedar Dunes Homeowners Association, 13,527 1,13% 16,805= 0.54% 3 ~Rinker Materials ~ 12,088 1,01%. 14,108 '0,46 % ;
- 4. Federal Housing Authority; .11,921- l 0',99% - N',602 0.57%': j 5, Islander; Beach Lodge; 10,'954 0,91% 18,202 0,59%-
t
- 6. Pelican condominium :10,033 "O,83% -17,538 0.57%
7 Suger Tree by' Cardinal- -9,455 0,79% 13,956 0,45%, j
~
8,979
- 8. Oceanview Towers Homeowners 0,75% 15,599. 'Oi51%'
- 9. Sandpiper Homeowners- 8,793' O,73% _16,717 0.59%: 'I
+
l
- 10. Golden Arms Homeowners 8.453 0.70%' 13.909 0.45%.
l . . ; TOTALS 114,219 9,50%' $171,600 5,61% ( 4 A
~f i
'e
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UTILZTIES-COMMISSION TABLE VII .l CITY OF NEW SMYRNA BEACH, FLORIDA i TEN LARGEST ELECTRIC CUSTQMERS m September 30~, 1989
=
Kil.owatt Hour Sales n Revenues Bill,gd_ Percent Percent (kWh) of of
- d (000's) Total Amount Total
_2
- 1. Fish Memorial Hospital- 4,463 1.79% $ 336,377- 1.61%
I" 2. Publix Supermarket (#0191) 2,862 1.15% .216,856 -1.04%
- 3. Publix Supermarket (#0335) 2,615 1.05% 194,822 0.93% a
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{
. 4. Utilities Commission Pollution Ij i Control Plant 2,422 0.97%. 181,798 0.87%. !
7 3 5.' Volusia County Sch'ool Board e- Junior High School s 2,244 0.90%. 191,490 0.92% 4 f- 6. Winn Dixie Supermarket (#2302) 1,826 0.73% 137,471 0.66%
- 7. Food Lion Corp. 1,669 0.67% 125,806 0.60%-
- 8. K-Mart 1,601 0.64% 126,767 0.61%. !
- 9. Islander Beach Lodge 1,485 0.59% 118,304- 0.57%
10.'Ocmulgee Fields Inc. 1.386 0.161 111.522 0.53% 3 ] TOTALS 22,573 9.05%. $1,741,213 -8.34%. 4 di j i 3 l
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.i UTILITIES COPMISSION p ble VIII CITY OF NEW SMYRNA BEACH, FLORIDA '
COMPARATIVE' BALANCE SHEETS'- September 30, ASSETS 1989 1988 ' 1987 1993 1985 I: UTILffY PLANTt Electric system , $39,229,967 $38,103,157 837,203,666' $28,193,908 $27,390,036 Water system 14,771,713. 14,325,6A7 13,397,752 12,789,175 12,605,602
- Pollution Control system 16.995,713 16,874,018 '16,472,673- 16,320,669 - 16.237,105 Ceneral Plant 4.762.069 4.482.025 4.331.701 3.703.838- 3.103.845 .
75,759,462 73,784,887- 71,405,792 61,007,590 59,336,588. Lessql Allowance for depreciation and amortisation (25.294.147) (23.139.496)' M 949.088) (1/.164.023) (17.575.992) - 50,465,315 50,645,391 50,456,704 41,843,567 41,760,596 Construction work in progress . 3.886.761 1.339.507 1.692.246 - 2 . 6 7._.Q 1.656.018 ' UTILITY PLANT-NET 54.352.076 ' 51.984.898 52.148.950 44.4901180 43.416.614 l l .- RESTRICTED ASSETS: . Debt Service funds 5,067,859- 5,140,544 4,974,756- 4,282,877 4,357,878 L* Renewal and Replacement funds- 3,67,,300 4,470,844 3,586,775 4,840,077 3,093,744 Construction funds e - - - '2,314,408 Customers' deposits 907,953 871,457 . 887,456. 764,268 673,636 CR 3 deconsnissionins' fund 362,117 251,605 153,603 109,733 68,173 Rate stabilisation fund ' 90.516 16.024. - - - TOTAL RESTRICTED ASSETS 10.105.745 10.750.474 9.602.590' 9.996.955: 10.507.839 CURRENT ASSETSt Cash 521,953 - 653,260 1,139,127 395.745 - 976,264-Acerued Interest receivable 56,420 53,607 47,334 47,413 63,730 - Accounts receivable (not) 1,553,631 1,223,125 1,209,442 918,271 1,006.914 s Unbilled accounts receivable .1,490,395 1,598,744, 1,969,057 1,360,322 1,456,396 Due from other 80verranents 30,772 70,970 48,893 74,275 . 161,674 Inventortee 1,467,463 1,438,728 1,297,140 1,272,477 1,041,736 Prepaid expenses and other essets .121,889 140,228 - 150,701 109,563 116,109 Assessments receivable 63.454 89.811 '102.639 114.355 138.310 TOTAL CURRENT ASSETS 5.305.977 5.010.958 5.478.466 5.035.803 4.961.133 . DEFERRED CHARGES AND OTHER ASSET $t
- Unamortised debt expense 550,807 590,875 631,730- 546,456 555,240 Deferred charges and other assets 23,543 110,213 25,756 25.103 26.633 Assessaunts receivable - noncurrent 115.692 159.085~ 217.541 308.597 476.659 TOTAL DETERRED CHARGES AND OTHER ASSETS 690.042 860.173 875.027 880.156 1.058.532 $
b
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LIABILITIES AND UTILITY EQUITT 1989 1968 1987 1986 1985 UTILITY EOUtTY Contributed capital
$18,540,201 $17,672,840 $16,878,706 $15,607,920 $14,580,916 Retained Earnings Reserved for debt servlee 2.675,541 2,728,142 2,704,948 2.375,957 2,466,824 Unre se rved 4,697,93} 4.582.127 5.022.800
,_ 7.174.970 7.331.214 7.373.476 7.310.269 7.727.748 9.550.927 9.798.038 i
TOTAL UTILITY EQUITY 25.913.677 21.983.109 24.606.454 25.158.847 : 24.378.954 l LOP 3-TERM DEBTi ! Note payable (net of current portion) 1,726,744 745,561 -* - - Revenue certtiteates payable (net of current portion) 36,285,000 37,090,000 37,855,000 30,890,000 $1,415,000 Less: Unamortised debt discount f689.602) (740.966) (793 ]10) (711.500) (722.938) i' : TOTAL LONG TERM DEBT 37.322.142 37.094.595 37.061.650 30.178.500 30.692.062 RESTRICTED FUND IIABILITIES: Revenue certificates payable (current portion) 1,145,000 1,085,000 940,000 730,000 700,000 Notes payable (current portton) 45,000 30,000 - -~
)
Accrued interest payable 1,292,834 1,313.426 1,329,808.' 1,176,920 Accounts payable 1,191.054 , 697,404 65,290 296,238 283,548 163,858 ' Oustomers' deposits 849,963 778,677 785,872 ' 650,526 556,411 Reserve for decurimissionLns costs 362.117 251.605 153.603 109.733 68.173
]
TOTAL RISTRICTED FUND LIABILITIES 4.392.318 3.523.998 3.505.521 2.950.727 i 2.679.496 CURRENT 1.TABILITIES: Accounts payable- 1,443,706 1,557,946 1,481,512 Accrued liablitties 1,034,491 1,152.989 544,468 569,701 009,301 556,684:- 480,477 Due to other governments 231.956 343.620 324.517 , 161.433' 287.256 i TOTAL CURRENT LIABILITIES 2.220.130 2.471.267 2.495.330 1.752.608 1.920.722 OTHER NONCURRENT LIABILITIES: Deferred compensated obsences 403,186 490.315 329,214 299,404. 257,951 Operettna reserves 115,238 45,303 l 106,864 63.007 14,933 ! Other itabiltties - 85.045 - - - 1 TOTAL DEFERRED CREDITS AND OPERATING RESERVES 605.573 533.534 ! 436.078 _ 362.411 _ 272 344 TOTAL LIABILIT7ES 44.540.163 43.623.394 43.498.579 35.244.246 35.565.164 5 i l s TOTAL LIABILITIES AND UTILITY EQUITY $70,453,840 $68,606,503 $68,105,L33 $60,403.093 $59,944,118 I 4
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UTILITIES CODMISSION Table IX l CITY OF NEW SMYIUM BEACH, FLORIDA
. i STATEMENT OF REVENUES, EXPENSES AND CHANCES IN RETA1NTD EA.tNINGS For the Fiscal Years Ended September 30, 1989 1988 1987 1986 1985 -
OPERATING REVENUES: Sales $26,155,534 $24,180,899 $22,234,268 $20,084',838J $19,395,812' Other revenues 261.073- 261.866 237.666 148.175 140.166 TOTAL OPERATING REVENUES 26.416.607 24.441.765 22.471.934 20.233.013 19.535.978 OPERATING EXPENSE 8t . . Production empenses 13,903,532 12,780,038 11,962,054 10,631,'343 10,637,458 ' Transmission, distribution and sewage cellection t and treatment 2,79$,429. 1,657,153 2,430,767 2,044,229. 1,868,923 i Customer accounting 660,210 647,001 . 614,138 565,057 547,951 -j Administrative and general- 3,025,338 2,888,994 2,856,752 2,581,264 2,311,726 t Required payments to the ,i City of New Smyrna Beach 1,589,082 1,481.102 1,301,571- 1,209,499: 1,122,521 j State utilities tax. 308,843 291,187 243,184 241,059 170,406-- 1)epreciation 2..t12.241 2.119.675, 1.885.382 1.674.114 1.625.220- l 4 TOTAL OPERATINC DCPENSES 24.494.675 22.865.150 21.293.848 18.946.565 18.284.206 . OPERATING INCDIE MW 1.577.615 1 178.086 1.286.448 1.251.772 ~ Sp.1, NONOPF9ATING RFVENUEt - Interest earntnas 818,14E 668,355 .665,119 818,337 1,091,630 - Other income 150,580 152,062 148,241 151.326 161,610 Cain on disposal of f amed assets 6.34 6.421 289.962 13 3.291 TO'.AL NONOPERATING REVENUE 1.015.101 , 816.838 1.103.322 971.293- 1.256.531 TOTAL INCOME 2.937.033 2.281.408'
'2.404.453 2.257.741 2.508.303 . .j j
LESS NONOPERATING EXPENSES: Interest and debt expense 2,737,217 2,775,470 2,583,191. 2,421,468 2,376,681
]
Other expenses i 83,773 37,730 101,482 23,423 63,926 Loss on disposal of fined assets $2.836 . 8.732 34.369 59.961 560 TOTAL NONOPERATING EXPENSE 2.873.826 2.821.932 J .719.042 2.504.852 2.441.167 : NET INCOME (IDt,5) 8EFORE INFREQUENT \
.i AND EXTRAORDINARY ITDtS 63,207 (417,479) (437,634) (247,111). 67,136 INFREQUENT TM'.Mr W
Loss f roat sale of steam seneret.ing plant - - - 532.377 4 N4T INCOME (1 DSS) SEFORE i EXTRAORDINARY ITD1 63,207 (417.479) (437,634) (247,111) (465,241)
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{ EXTRAORDINARY ITDie Loss from defeasance of debt - ' - 1.385.545 - 1.206.672 NET INCOME (LOSS) 63,207 (417,479) (1,823.179) (247,111) (1,671,913) . RETAINED EARNTHCS - BEGINNING OF YEAR 7.310.269 7.727.748 9.550.9],1 9.798.038 11.469.951 ! RETAINED EARNINGS - FND OF YEAR $ 7,373,476 8 7,310,269 $ 7,727,748 $ 9,550,927 8 9,798,038 i J t 52 3 I l
, . _ . - _ - - - - :.w v 1 UTILITIES COHKISSION Table X CITY OF NEW SMYRNA BEACH, FLOR 1DA , [ STAfDENTS Of CASH FLOWS 1- For the Fiscal Years Ended September 30, 0 1 1989- 1988 1987 1986 1985 CASH FLOWS FROM OPERATING ACTIVITIES: Cash recetyed from customers
$26,611,174 $25.032,704 $22,230,085 $20,781,824 $18,882,987 i Cash paid to suppliers and esployees (21,708,667) (20,970,008) (18,798,903) (17,275,113) (16.514.931) !
Interest received 815,335 662,081 665,200 834,654 1,104,177 l Interest paid (net of amount capitalised) f2.666.377) f2.698.611) f2.332.546) f2.415.380) (2.421.901) I NET CASH PROVIDED BY OPERATING ACTIVITIES 3.051.465 2.026.166 1.763.836 1.925 211 1.050.332 l 1 CASH FLOWS FROM CAPITAL AND REIATED [ Egg.TYu_*NCING ACTIVITIEst j
'at peu eeds from issuance of lons term debt 1,026.182 775,562 14,329,128 -
7,388,332 Debt re suction outlays l (775,000) (620,000) (8,804,557) (495,000) (7,761,672) ! O ntri sted capital 867.360 794.1'34 1.270.785 1.027.004
,, 989.593
. 'l NET CASH PROVIDED BY CAPITAL AND # '
RELATED FINANCING ACTIVITIES 1.118.54% 949.696 6.795.356 532.004 616.253 CASH FLOWS FROM INVESTING ACTIVITIE$i Proceeds f rom sale of property and equipment 17,969 9,255 333,985 60,701 321,206 Acquisition and construction of capital assets (4,706,497) (2,094.748) (9,773,409) (2,896,710) (2,456,659) Purchase of investment securities 1 (4,829,867) (4,154,042) (1,797,166) (1,426,226) (2,099,616) Proceeds from sale and maturities of l' investment securittes 4.610.600 3.907.824 1.353.804 1.616.700 2.487.414 NET CASH USED IN INVEST 1A .sCTIVITIES (4.907.795) f2.331.711) (9.982.786) (2.555.535) .(1.747.655) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (737,788) 644,131 (1,323,594) (97,546) (81,070) ' CASH AND CASH EOUlyALENTS - Beminnina of Year 8.087.159 8.766.602 8.864.148 7.4112228 8.945.218 r CASH AND CASH EOJIVALENTS - End of Year $ 7,349,371 $ 3,087,159 $ 7,443,008 $ 8,766,602 $ 8,864.148 RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIESt Not income (loss) l 1, Adjustments to reconctie not income (loss) to not 63.207 $ f 417. 479) f f t .823.179) $ (247.111) Sfl . 671.913) cash provided by operating activittes Extraordinary loss - - 1,385,545 Deprectation and amortisation 1,206,672 2,366,318 2,340,474 2,134,005 1,694,336 1,639,778 Provision for losses on receiveSles 54,541 55,327 41,015 68,178 72,200 Loss (84tn) on sale of property and equipment 46,463 2,311 (255,593) 58,331 529,646 Decrease (increase) in operating assets Accounts receivable (262,857) 279,226 (915,539) 203,918 (1,022,168) Assessmente receivable 26,357 71,284 102,771 192,017 206,907 Accrued interest recetvable i (2,813) (6,273) 80 16,317 Inventories 12.547 ! (28,735) (141,587) (24,662) (230,741) Prepaid expenses (206.999) 18,340 10,472 (41,138) 6,546 78,111 Deferred charges and other assete 156,422 (84,459) (651) 1,530 660 Increase (decrease) in operatiLa liabilities: Accounts payable 517,874 (154,513) 459.710 1,192 292,228 Acerued interest payable (20,592) (16,381) 152,887 (14,134) (59,778) Due to other sovernments (111,665) 19,103 163,084 (125,823) 131,174 Customer deposits 71,286 (7,195) 135,346 94,115 (5,358) Other liabilities 157.319 75.856 250.155 207.244 ___,(151.175) TOTAL ADJUSTMENTS 2.988.258 2.443.645 3.587.015 2.173.096 2.722.245 NTT CASH PROVI'D ED BY OPERATING ACTIVITIFS $ 3,051,465 $ 2,026,166 $ 1,763,836 S'1,925,985 $ 1,050,332 53 l __ . . I
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- UTILITIES COMMISSION.
CITY OF NEW SMYRNA BEACH, FLORIDA. Table XI( I SELECTED SECMENT INFORMATION September 30, Pollution Electric Water Control-System System System Total 1 September 30. 1989 "' Operating revenue, Depreciation .
~$20,841,500_ $ 3,184,987- $-2,390,120 1,277,889 396,269 538,083 M ,416,607 2,212,241 h
E= Operating income (loss)- 1,201,721 '676,188 44,023 1~,921,932 Required payments to City of .
~
New ;.myrna Beach 1,256,840 =189,685 142,557 1,589,082- _ Net income (loss)'. . (80,411) - 261,767 (118,149)- 63,207)
-Contributions in aid of- .
construction 410,273' 5,196,160 12,933,768 18,540,20'1 Utility plant acquisitions 1,438,980 547,037. 173,227 2,159,244 j Utility plant retirements - _142,218, 32,203 10,247 184,668-Revenue Certificates payable 21,055,700 10,082,700- 6,291,600 37,430,000 g' Utility equity 6,401',483 7,691.820 11,820,374 25,913,677 - Scotember 30.11988
' Operating revenue $19,467,476 $ 3,050,904 $ 1,924,385 $24,442,765- .I ;
Depreciation 1,224,606- '367,515~ 527,554 2,119,675 j Operating income (loss) 1,240,917- 661,896 (325,198) 1,577,615 : Required payments to City of New Smyrna Beach l',187,019 '180,950 j 113,133 1,481,102 i Net income (loss) (51,032) 186,970 (553,417) (417,479) " j contributions in aid of i construction 410,273 5,443,804 11,818,763 17,672,840 ! Utility plant acquicitions 1,023,925 996,032 427,530 2;447,487 Utility plant retirements 34',240 30 'i16 3,636 68,392 ' Revence Certificates payable 21,454,400- / F) w50 6,421,150 38,175,000 Utility equity 6,481,884 , 697 10,823,518 24,983,109 September 30. 1987. 1 Operating revenue $17,714,974 $2,925,916 $1,831,044 _$22,471,934 j Depreciation- 1,034,223 337,457 513,702 1,885,382 3 Operating income (loss) 883,855 618,625 (324,394) 1,178,086 l Required payments to City of j New Smyrna Beach 1,020,323 173,449 107,799 1,301,571 1 Net income (loss) (572,267) (566,931) (683,981) (1,823,179). Contributions in aid of i construction 410,904 4,989,643 11,478,159 16,878,706 l Utility plant acquisitions 9,712,604 741,641 273,531 10,727,776 ; Utility plant retirements 292,121 13,229_ 24,223 329,573 l Revenue Certificates payable 21,801,167 10,493,805 6,500,028 38,795,000 - Utility equity 6,533,557 7,036,566 11,036,331 24,606,454
)
I 54 y a
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l Pollution Electric- Water Control System System System-l Total Scotember 30. 1936 Operating revenue $15,743,029 $2,735,021 $1,754'963 $20,233,013 , Depreciation 856,322 323,705 494,087 1,674,114 Operating income (loss) 955,089 600,5C, (269,206) -1,286,448 .i Required payments to City of . New Smyrna Beach 945,448 159,907 104,144- 1,209,499< j Net income (loss) 23,446. 174,454 (445,011) (247,111) ,l Contributions:in aid of construction 384,069. .4,297,608 10,926,243 15~607,920 Utility plant acquisitions 1,316,215 434,503 153,051' 1,903,769-Utility plant retirements- 198,494 29,156 5,118 232',768 j Revenue Certificates payable 15,010,821' 10,082,448 6,526,731 31,620,000- l Utility equity 7,078,989 6,911,462 '11.168,396 25,158,847. ' 1^ September 30. 1985; Operating revenue $15,473,671 $2,615,605 $1,446,702 $19;535,978 Depreciation 837,482. 309,663 478,075 :1',625,220 Operating income (loss) 1,134,359 584,151 (466,738) 1,251,772 Required payments to Cf.*.y of ' New Smyrna Beach 884,966, 153,593 83,972 1,122,531 Net' income (loss) (685,780) (354,042) (632,091) (1,671,913) Contributions in aid of construction 340,617 3,754,527- 10,485l,772 - 14,580,916 Utility plant acquisitions 1,235,742 972,978 898,111 3,106,831 Utility plant retirements 2,244,185 48,646' .2,070 2,294,901 Revenue Certificates payable 15,246,330 10,236,900- 6,631,770- 32,115,000 , Utility equity 7,012,091 '6,193,927 11,172,936- 24,378,954 1 h (
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UTILITIES COMMISSION. Table XII CITY OF HEW SMYRNA BEACR, F1.ORIDA 4
-s SCHEDULE OF REVENUE CFRTIFl* ATE CCVERAGE September 30, ;
1989 1988 1987 1986 1985 I Cross Revenue Per Certificate Resolutiont _Operatin8 revenues Interest and other incane (excludin8
$26,416,607 $24,442,765 $22,471,934 $20,233,013 $19,535,978 . I 'I construttton fund interest earnin8s) 1,008,728 820,417 813.360. 876,820 1,010,940 Connection fees 806.571 -756,976 1,180,590 958,390' 806,705 f.
Assessment collections 69.750~ 71.284 101.891 190.943 210.910 ) .> 28 301.656 - 26.091.442 24.567.775 22.259.166 ^ 21.564.533 I i Exnenses Per Certificate Resolut tent ] OperatLn8 expenses Less Depreciation expense Required payments to the City 24,494,675- 22,865,250 21,293.848 18,946,565 18,284,206 (2,212,241) (2,119,675) (1,885,382) (1,674,114) (1,122,521) .I (1. 569. 082) :&M) (1.301.571) _ (1.209.499) (1.625.220) 20.693.352 19.264.373 18.106.895 .16.062.952 15.536.465 INCOME AVAILABLE FOR DE8T SERVICE 7.608.304 6.827.069 6.460.880 6.196.214' 6.028.068 Annual Debt Service Reautrement s t ' Principal 765,000 t 725,000 515,000 495,000 365,000 ! Interest (less accrued interest from issuance) 2.597.110 J .637.382 2.660.317 2.362.465' 2.429.728~ k
$ 3,362,110 $ 3,362,382 4 3,175,317 $ 2,857.465 $ 2,794,728 COVERAGE RATIO (TIMES) 2.26 2.03 2.03 2.17 2.16 I
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L, I~ UTILITIES 00HNIS$!0N Table XIII-CITY OF NEW SMYRNA BEACH, FLORIDA 5 l- , SCHEDULE OF Sr* *.CTED FINANCIAL P.Af!DS
- . . a q ember 30, l . .
l i 1989 1988 1987 1986 1985 f
.' Current ratio = current assets l divided by current liablitties (Times) 2.39 2.00 2.20 2.87 2.58 I Quick ratto ' current assets '. [
t less inventories divided by current . liabilities (Times) 1.73 -1.43 1.68 2.15 2.04 Current assets divided by total assets (Pe rcent) 7.533 .7.302 8.042 8.34% 8.281 l-Current 11mb111ttes divided by total 11abt11ttes f?mrcent) 4.982 5.732 5.74% 4.971 5.401 Current liabilities divided by utility oculty (Percent) 8.57% 10.012 10.142 6.972 7.88% Contributed capital divided by utility equity (Pe rcent) 71.*iA 70.742 68.592 62.04X 59.811 i I Total Itab111 ties dLvided by utility equity. Lons term debt (not) divided by (T Lmes ) 1.72 1.75 -1.77 1.40 .1.46 utility equity (TLaos) 1.44 1.48 1.51 1.20 1.26 i Current Itabilities divided by ! total assets (Percent) 3.151 3.651 3.66% 2.90X 3.20% Lana-term debt (net) divided by , total assets (Per ert) 52.971 54.073 54.422 49.96X 51.20% ; l Total liabilities divided by i total assets (Pe rcent) - 63.21% 63.58X 63.872 58.351 59.33X l '. Sales dLvided by average accounto receivable (T Lme s ) - 19.03 20.10 21.12 21'02 19.99 f Average collection period - average billed i accounts receivable Civided by l average daily * ,'es (Days) 18.92 17.91 17.04 17.13 18.01 l I l t i i 57
~. . _ . . .- ,
_..,-,_,._m-----_-w,--- "' I g , i ORCANIZATION CHART i l cl . I ' I 1 ' c
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I I g , UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA' I. FINANCIAL STATEMENTS and
- j 4
AUDITORS'= REPORT. J
;I- September 30, 1989 and 1988 i
i
- I 0FFICIALS Albert J. Verick, Chairman-I i
Jesse L. McKee, Jr., Vice-Chairman 9 Richard C. Allen, Secretary-Treasurer 4
'g ,
William R. Fay, Assistant Secretary-Treasurer'. I
.g Heyward A. Paxton, Jr.. Commissioner-
'[
W DIRECTOR OF UTILITIES R. Ronald Hagen CONTROLLER [ g is tsC t coeNSet INeeeeNeeNT ee11eRS Bolt & Spence, P.A. Brent Millikan & Co., P.A. - I l g
=
9 i Ell UTILITIES COMMISSION 4 CITY OF NEW SMYRNA BEACH, FIERIDA TABLE OF CONTENTS- Page 1 of 2 I Reference Pages INTRODUCTORY SECTION-Title Page................................................. i Organization Chart......................................... iv Certificate of Achievement................-................. V Letter of Transmittal. .................................... vi-xiii-FINANCIAL SECTION GENERAL PURPOSE FINANCIAL STATEMENTS: Auditors' Report....-...................................... 1 2' Comparative { Balance-Sheets............................... Statements of Revenues, Expenses and Chan State:hont J 3-4 in Retained Earnings......................ges I ................ S ta teme nts o f Cash F1ows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Notes to the Financial. Statements........................ Starement 2 Statement 3 6-7 2-28 5 SUPPLEMENTAL DETAIL INFORMATION OF THE' ELECTRIC. WATER AND POLLUTION CONTROL SYSTEMS: I Schedule of Revenues, Expenses and. Changes I. in Retained Earnings................................... Schedule of Revenues, Receipts and Expenses Budget and Schedule 1 29 Actual - Electric. System (Non-CAAP Budgetary Basis) ... l
, Schedule 2 30-31 'I Scheuule of Revenues, Receipts and Expenses -' Budget and Actual - Water System (Non-CAAP Budgetary Basis)....... LSchedule 3 Schedule of Revenues, Receipts and Expenses - Budget and 32-33' j
j Actual - Pollution' Control System (Non-CAAP Budgetary I_ Basis)............................. .
................... Schedule 4 34-35 1 Schedule of Operating Expenses - Electric Syrtem......... Schedule 5 '36 Schedule of Operating Expenses - Water System............ Schedule 6 37 Schedule of Operating Expenses - Pollution Control S Schedule 38 Schedule of Interest Earnings.......................ystem ..... . Schedule " 39 STATISTICAL SECTION Schedule of Expenses by Function - Last Ten Fiscal Years... Table I 40-41 Schedule of Revenues by Source - Last Ten Fiscal Years.... Table II 42-43 I_ Demographic Statistics....................................
Property Value, Construction and Bank De Table III 44 ! Ten Fiscal Years...................... posits - Last
................... Table IV 45 Schedule of Insurance in Force............................. Table V I- Ten Larges t Wa te r Cus tomers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Trble VI 46-47 48 I
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' *j:( lies COMMISSION.
JITY'0F NEW SNYRNA BEACH.. FLORIDA TABLE OF CONTENTS Page 2 of 2 STATISTICAL SECTION (Continued)- Ten of the Largest Electric Customerchand Their Total Kilowatt Hours Purchased................................. Table VII 49 .. SELECTED FIVE-YEAR HISTORICAL INFORMATION: Comparative Balance Sheets... ............................. Table VIII 50 51 Statements of Revenues, Expenses and Changes in Retained Earnings....................................... . Table IX- 52 S ta teme nts o f Cash F1 ows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Table X '53 Selec ted Se gment Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Table XI 54-55 :, Schedule of Revenue Certificate Coverage.................... Table XII 56 ' Schedule of Selected-Financial Ratios...................... Table XIII 57 W> g lL o I: q l i I i iii l'
s# , UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA g I I I I
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I I Financial Statements I and l Auditor's Report ! I g September 30,1989 and 1988 t __ . .. .
I UTI'.ITIES COMMISSION CITY OF R d SMYRNA. BEACH, FLORIDA FINANCIAL STATEMENTS I and AUDITOR 3' REPORT September. 30, 1989 and 1988 OFFICIALS Albert J. Verick, Chairman I Jesse L. McKee, Jr., Vice-Chairman Richard C. Allen,. Secretary-Treasurer William R. Fay, Assistant Secretary-Treasurer I:. . Heyward A. Paxton, Jr., Commissioner-DIRECTOR OF UTILITIES I' R. Ronald Hagen A
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y va1 1s ,aean. m 1- Lee t Cee. Set I eeesses T ee1TeRS Bolt & Spence, P.A. Brent Millikan & Co., P.A. I
UTILITIES' COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA TABLE OF CONTENTS- Page l'of 2 Reference Pages INTRODUCTORY SECTION Title Page................................................. 1 ( Organization Chart............-.............................. 'iv Certificate of Achievement.................~................ v-Letter of Transmittal....................................... vi-xiii-- FINANCIAL SECTION CENERAL PURPOSE FINANCIAL STATEMENTS Auditors' Report......................................... Comparative .1-2 Balance-Sheets............................... Statement l' 3-4 Statements of Revenues, Expenses and Changes in Retained Earnings.................................... Statement 2_ 5
.I-' S t a tements o f Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Statement 3 -67 Notes to the Financial Statements........................ 8-28 g SUPPLEMENTAL DETAIL INFoRMATION OF THE ELECTRIC. WATER E- AvD FottUTIoN CoNTRot STSTExS:
Schedule of Revenues, Expenses'and Changes I; in Retained Earnings.............................._..... Schedule of Revenues, Receipts and Expenses --Budget and - Schedule 1 29 Actual - Electric-System (Nor.-GAAP Budgetary Basis).... Schedule ~2 30-31 Schedule of Revenues, Receipts and Expenses - Budget'and Actual - Water System (Non-GAAP Budgetary Basis)....... Schedule 3 32-33 Schedule of Revenues, Receipts and Expenses Budget and Actual - Pollution Control System-(Non-GAAP' Budgetary i Basis)................................................. Schedule of Operating Expenses - Electric System......... Schedule 4 34 35 Schedule 5 36 Schedule of Operating Expenses - Water System............ Schedule 6- 37 Schedule of Operating Expenses - Pollution Control S I'. - Schedule of Interest Earnings........................ystem ..... Schedule 7 Schedule 8 38 39 STATISTICAL SECTION
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Schedule of Expenses by Function - Last Ten Fiscal Years... Table I 40 41 Schedule of Revenues by Source - Last Ten Fiscal Years. . . . . Table II 42-43 I. Demographic Statistics..................................... Property Value, Construction and Bank Deposits - Iast Table III 44 Ten Fiscal Years......................................... Inble IV. I 45 Schedule of Insurance in Force............................. Table V 46-47
. Ten Largest Water Customers............................ ... Table VI 48 i
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UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA TABLE OF CONTENTS Page 2 of 2 Refereneq Pares . STATISTICAL SECTION (Continued) Ten of the Largest Electric Customers and Their Total Kilowatt Hours Purchased................................. Table VII 49 SELECTED FIVE-YEAR HISTORICAL INFORMATION: Comparative Balance Sheets................................. Table VIII 50 51 Statements of Revenues, Expenses and Changes in Retained' Earnings..................................... Table IX 52 Statements of Cash ~ Flows................................... Table X 53 Selected Segment Information............................... Table XI 54-55 Schedule of Revenue Certificate Coverage................... Table XII 56. , Schedule of Selected Financial Ratios...................... = Table XIII 57.
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CERTIFICATE OF ACHIEVEMENT -' for the year ended September 30, 1988 , i The Government Finance Officers Association of the United ., States and Canada (GFOA) awarded a Certificate of Achievement for ,I Excellence- in Financial Reporting to the Utilities Commission, City of New Smyrna Beach, Florida, Comprehensive Annual Financial Report for the fiscal year for its ended September 30, 1988, In order to be awarded a certificate of Achievement, a governmental unit must publish an easily readable- and efficiently organized comprehensive annual financial report, ' whose contents conform to program standards. Such reports-must satisfy both generally accepted accounting- principles 6 and applicable legal requirements. A Certificate of Achievement is valid for a period of one , year only. Management believes-that this report continues to ; conform to Certificate of Achievement Frogram standards. '
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I . t g I Certificate of 1 'I. Achievement
- I for Excellence in Financial :
!I Reporting , Presented to
- g Utilities Commission City of New Smyrna' Beach, Florida '
!I For its . Component Unit t Financial Report jg for the Fiscal Year Ended September 30,'1988 A Certificate of Achievement for Excellen,in Financial ' Reporting is presented by the Government h sance Officers j' Association of the United States and ..inada to govemment units and public employee retirement
- 3 systems whose component unit financial-reports (CUFR's) achieve the highest ig standards in govemment accounting '
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LETTER OF TRANSMITTAL . c I . l I 1 I . ,I' l C D r w L L r~ L__ 1 I &- y I i
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" 4' CIW OF NEW SMYRNA BEACH. FLORIDA = / (
l > 1'JaseE McKEE ELICTRIC. WATER. POLLUTION CONTROL - N Post Office Box 519 120 Sams Ave. NCHAROC, ALLEN ; New Smyrna Beach, Florida 32070-0519 7 wg,. (904)427 1361 - WILUAM R. FAY Aest GeoretaryTreasurer
- HEYWARD A. PAXToN ' December 1. 1989 commensioner ; ' li To the Chairman and Members-of - the Utilities Commission - l ; - City of New Smyrna Beach, Florida j The Component Unit Financial Report of the Utilities Commission, City of New I. Smyrna Beach, Florida -for the fiscal-years ended September 30,=1989 and-1988, J is hereby submitted. Responsibility. for both the accuracy of the _ presented data and the completeness and fairness of the presentation,. including all- ,
disclosures, rests'with the Utilities Commission'. To the best of our ' knowledge and . belief, the. enclosed data are accurate in all material aspects -; and are reported in a manner designed to present fairly the financial position" ' and results of operations of the Utilities Commission. All disclosures ' necessary to enable the reader to_ gain the maximum understanding of:the. Utilities Commission's financial affairs have been included. t This financial report is presented in four sections:- introdt.ctory, financial, statistical, and compliance (Auditor Ceneral of the State of. Florida). The '
; introductory section includes this transmittal letter, the Utilities- -
Commission's organizational chart,' and a list of principal officials. The _ . financial section includes the basic financial statements-and the independent auditors' report on the financial statements. The statistical section , I -- includes selected financial and demographic information, generally presented ~ i on a multi-year basio, and selected five-year historical financial-information. - The Utilities Commission is required to be audited in accordance with Chapter l 10-500, Rules of the Auditor General of the State of Florida. Information ? I ' related to this audit, findings and recommendations, and auditors' reports on the internal control structure and compliances with applicable laws and i regulations, are included in the~ compliance section of this report, p 3 REPORTING ENTITY AND SERVICES PROVIDED The funds,and entities related to the operation of the Utilities Commission-
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which are included.in these financial statements are-a component unit of the City of New Smyrna Beach, Florida, and an integral part of the - City's
' reporting' entity. The Component Unit' Financial Report of the Utilities ,
Commission is issued separately to provide a comprehensive financial reporting summary and presentation to the Utilities Commission and its revenue ' certificate' holders. lI vi
M I: To the Chairman and Members of;the Utilities Commission City of,New Smyrna Beach, Florida l December 1. 1989 i
'Page 2 Audited financial statements of the City of New Smyrna Beach, Florida, are
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available upon request from the City of New Smyrna Beach, 210 Sams Avenue, New 4 Smyrna Beach, Florida, 32168.
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- li The Utilities Commission, City of New Smyrna Beach, Florida,: provides a full' [
range of electric, water and pollution control services to its customers both" . W-inside.and outside the city limits.. These activities are fully accounted for ' in this financial report. - i i ECONOMIC CONDITION AND OUTLOOK t The central Atlantic coast of Florida,'in which the Utilities Commission is. i located, ranks in the top 25 fastest growing metropolitan areas in the i country. For the period from 1980 to 1987, Volusia County, Florida, gi experienced a 27.9% rate of population growth as. compared to the-statewide 3j rate of 23.6% and the national rate of 8.0%. The economic condition and-outlook of the Utilities Commission have continually. improved during'the past n[ several years due in.large to the controlled development of residential and .g; commercial properties which in turn has increased the. Commission's quality customer base. In addition, substantial, increases in~the local. tourism,; light-manufacturing, and servicerelated business industries have.had a positive-effect on the area's employment statistics. The community-currently has a: 4.5% unemployment rate as compared to a statewide rate of 5.0% and a national li W t t
-average of 5.5% (1988 annual average).
Based on current projections, this trend is expected lto. continue through the end.of~the century. While having a positive impact, this.'rowth g also t presents significant challenges for the Commission. If the present high level ; of services is to be maintained, the Utilit.ies Commission, in the future, will ! need to explore new methods of obtaining financial resources to continue to provide the desired utility capacity to its growing customer base. MAJOR INITIATIVES g The Commission plans to issue $15 million Utilities System Revenue g[ Certificates, Series 1990, during January, 1990. . The 1990 Certificates have i been validated and issuance thereof approved by the City commission. The ! proceeds of the certificates, together with other available funds .will be used to finance the cost of improvements, extensions and additions to the Commission's electric, water, and pollution-control systems. The Commission has established a Five Year Capital Improvement Plan for the period from October 1, 1989 through September 30, 1994. The capital j l- -expenditures'of this plan are in addition to the' annual capital requirements [ l for routine extensions of existing utility facilities to serve new customers. : l' The Commission plans to finance the Plan from the proceeds of the above described revenue certificates,'along with-an estimated $15 million of vii
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,ToIthe Chairman and Members
'1 of the Utilities Commission City of New Smyrna Beach, Florida {
December 1, 1989 ! Page 3 b i I additional revenue certificates in 1993, along with its annual revenues and !' connection fees. Significant system imptovements to be financed from the issuance of revenue certificates in 1990 and 1993 will consist of the following: o A new 30 MVA electric substation located in the northern part of the j Commission's electric service area; 1 ' o Approximately 11 miles of 115 kV electric transmission line linking the Commission's Smyrna substation to the Florida Power' Corporation's eastern . service territory boundary;
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o Expansion of a water treatment plant in conjunction with the scheduled j expansion of the Commission's well field areas; i i 'o Construction of a treated water transmission line; ! 1 o Expansion and upgrading of existing treated water-distribution lines; o Development and construction of a phased water reuse system which consists of tertiary treatment of the wastewater treatment plant effluent along with ! pumping facilities and transmission lines to provide irrigation service to prospective customers; and o 1 I Pollution control facilities improvements consisting of the construction of a small pollution control treatment plant, construction of wastewater collection lines and a wastewater pumping station, and the installation of a computerized wastewater telemetry system. !. In addition to the improvements identified above, the Commission also plans to refund an existing obligation payable to the Florida Municipal Power Agency- ! (FMPA). Based on the repayment schedule, the October 1, 1993 outstanding balance on the loan will be $2.8 million. The proceeds of this loan were originally used to finance utility relocations resulting from a state highway proj ect. - { FINANCIAL INFORMATION ! Management of the Commission is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the Commission are protected from loss, theft or misuse and to ensure that j adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not , absolute, assurance that these objectives are met. The concept of reasonable ' assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgements by management. viii
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To'the Chairman and Members ; of'the Utilities Commission + City of New Smyrna Beach, Florida December 1, 1989 L Page 4 L L L Budgeting Controls 1 The Utilities Commission maintains an integrated system of budgetary controls.-
- The objective of these budgetary controls is to ensure compliance with legal:
provisions embodied in the . roved annual budget. The operating activities l;, of the electric, water, and , _lution control systems are included in the. E' annual budget. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount)lis established by. 3: function and activity within each individual operating system. The Commission gl also maintains a separate encumbrance accounting system as one technique of-
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accomplishing budgetary control. This system is used exclusively to maintain . budgetary control and is not utilized for purposes of presenting financial- : statements prepared in accordance with generally accepted accounting ' principles. As is demonstrated by the financial statements and schedules in the financial- l section c' this report, the Utilities Commission continues ~to meet its responsibility for sound financial management, t' Utility Operations In compliance with Resolution No. 16-75, the electric, water and pollution control systems are accounted for as a single enterprise fund. Ascof ( September 30, 1989, the Utilities Commission = served 18,045 electric customers, 9,509 water customers and 7,556 sewer customers. Service totals for the last-five years are summarized below:. Fiscal Electric Water- Sewer ! XtaI Accounts; Accounts Accounts 1985 ................ 12,468 8,122 6,539 1986 ................ 12,997 8,494 6,797 g. 1987 ................ 17,025 8,828 i,036 3: 1988- ................ 17~440
, 9,115 ,289 1989 ................ 18,045 9,509 ,,556 3
t u The current year's operating revenues from the combined, utilities systems l totaled $26,416,607, an increase of 8.08% over last year's-$24,442,765. The l increase was caused by general economic growth throughout the-year and from an approximately 24% increase in pollution control rates that went-into effect on , l October 1, 1988. The amount of revenue from various sources.and the-increases over last year are shown in the following tabulation: ix i
~. C To ths Chairm:n cnd M2mbsrs s of the Utilities Commission City of New Smyrna Beach, Florida December 1, 1989 Page 5 E Increase-Amount Percent Over 1988 Doeratine Revenue Source f000's) of Total (000's) l Electric system ........................... $ 20,842- 78.89% $ -1,374 Water system ............................. 3,185 12.06 134 1 Pollution control system ................. 2.390 94'i 466 TOTALS .............................. $ 26,417 100.00% $ -1,974 The current year's operating expenses from the combined utilities syttem totaled $24,494,675, an increase of 7.13% over last year's adjusted amount of -l I $22,865.150. Increases in the levels of expenses for the individual systems over the preceding year are shown in the following tabulation:
' Increase Amount Percent Over 1988 Operatine Execnses by Function (000's) of Total (000's)
Electric system .......................... -$ 19,640 80.18% $ 1,413 Water system ............................. 2,509 10.24 120 Pollution control system ................. 2.346 9 '. 5 8 ' 97 TOTALS .............................. $ 24,495 100.00% $ 1,630 1 Debt Administration i The revenue certificate debt coverage ratio is a useful indicator of the Utilities Commission's debt position. The current year's revenue certificate coverage is 2.26 times and is summarized in the following tabulation: ; Operating revenues ........................... $ 26,416,607 Interest and other income (excluding gain on disposals of $6,373). ............... 1,008,728 ; Connection fees .............................. 806,571 ' Assessment collections ....................... 69.750 REVENUES PER CERTIFICATE RESOLUTION .... $ 28,301,656 i Cost of Operation and Maintenance (net of depreciation and required payments to the City) ................................... 1 703.352 NET REVENUES PER CERTIFICATE RESOLUTION $ 7,608,304-Annual debt service requirement ............... $ 3,362,110 j
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COVERAGE RATIO ........................ 2.26 Times 4 l
i I To the Chairman and Members ; of the Utilities Commission City of New Smyrna Beach, Florida December 1, 1989 Page 6 The Commission's revenue certificate coverage ratio for each of the last five j fiscal years is presented in Table XII of the accompanying financial report. As of September 30, 1989, the Utilities Commission had outstanding _$37,430,'000 of revenue certificates payable. All of these obligations _are secured by a 7 first lien on and a pledge of the net revenues of_the system. ; Also during the year, the Commission made draws on a construction loan . _ agreement with the Florida Municipal Power Agency, as agent for the Initial j Pooled Loan Project in the aggregate amount of $1,026,183. The proceeds from the loan have been used to finance the cost of relocating utility lines'within the City as a result of the construction of a new high' rise bridge by the f Florida Department of Transportation. As of September 30, 1989, the balance : outstanding on the note totaled $1,771,744 & The Commission has. continued to maintain the same ratings on their outstanding revenue certificates, which are as follows: Moody's ' Standard & Poor's Utilities. System Revenue Refunding and Improvement Certificates, Series 1978 .... -A BBB+ Utilities System Revenue Improvement Certificates, Series 1986 ................. A -AAA (FCIC Insured) Utilities System Refunding Revenue ; Certificates, Series 1987 ................. A AAA (AMBAC Insured)- The debt service requirements on these obligations are detailed in Note 6 to the financial statements. Cash Management Cash temporarily idle during the year was invested through the use of a i competitive bid procedure in short term time deposits and medium short-term t investments. Shorter investment periods were utilized by the Utilities commission due to the rapid changes and uncertainties of interest rates , t experienced during the fiscal year. The amount of interest earned during the year was $818,148. The Commission's investment policy is to minimize credit and market risks while maintaining a competitive yield on its portfolio. Accordingly, deposits g:. g were either insured by federal depository insurance or collateralized in accordance with the Florida Security for Public Deposits Act (the "Act"). All collateral on deposits was held eitlier by the Commission, or.by the State' of Florida in accordance with the applicable provisions of the Act. All of the y Commission's investments held at September 30, 1989, are classified in the
1 To the Chairman and Members
'g. of the Utilities-Commission g City of New Smyrna Beach, Florida December 1, 1989 ;
Page 7 ' I. category of lowest credit risk (backed exclusively by the full faith and I credit of the United States government) as defined by the Covernmental
-Accounting Standards Board.
j OTHER INFORMATION Independent Audit Resolution Number 28-78 and other local and state statutes require an annual audit of the books of account, financial records-and transactions of all administrative departments of the Utilities. Commission by an independent certified public accountant selected by the Utilities Commission. The I- accounting firm of Brent Hillikan & Co., P.A., Certified Public Accountants,- was selected by the Commission to satisfy this requirement.. Their independent auditors' report on the financial. statements and schedules of the Commission has been included in the financial section this report. Awards - Certificate of Achievement I .The'Covernment Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to'the Utilities. Commission, f City of New Smyrna Beach, Florida, for its component unit financial report for the fiscal year ended September 30, 1988. We are also quite proud of the fact -that we have been awarded with this certificate for the eleventh consecutive year. In order to be awarded a Certificate of Achievement, the Commission must publish an easily readable and efficiently organized component unit annual ,I financial report, whose contents conform to~ program standards. Such reports must satisfy both generally accepted accounting principios and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to Certificate'of Achievement Program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate. Acknowledgments The preparation of this report on a timely basis could not have been ; accotaplished without the efficient and dedicated services of the entire staff of the Finance Department. Each member of the department has our sincere appreciation for the contributions made in the preparation of this report.
I!. l To the Chairman.and Members . of the Utilities Commission i City of New Smyrna Beach, Florida i December 1, 1989 i Page 8 l We would also like to thank the members of the Utilities Commission for their l interest, support, and leadership-in planning and conducting:the financial I operations of the Utilities Commission in a most responsible and progressive ' manner, , ! Respectfully submitted, J 1 R. Ronald Hagen . Valois Pagar, CPA ; Director.of Utilities Controller ' u 1 l l l l 1 l 1 L l, 1 l xiii i l l l i l la
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. FINANCIAL SECTION I This section is composed of the following three parts:
e l5 INDEPENDENT AUDITORS' REPORT ; e GENERAL PURPOSE FINANCIAL STATEMENTS s SUPPLEMENTAL INFORMATION 1 l i l I 1 I . 8 i I I .
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l I s I lI i l INDEPENDENT AUDITORS' REPORT l I I t l i I e I l I u , u. I m E .
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p 3- # y F; - l', T. N l, g G e < c-c e,m - . . . BRENT MILLIKAN & COMPANY, P.A. CERTIFIED PUBLIC ACCOUNTANTS Utilities Commission, . t i-City of New Smyrna Beach, Florida New Smyrna Beach, Florida INDEPENDENT AUDITOPI' REPORT > We have audited the accompanying balance sheets-of the Utilities Commission, ! City of New Smyrna Beach, Florida, as of September 30, 1989 and-1988, and the related statements of revenues, expenses and changes in retained earnings, and l - cash flows for the years then ended. These financial statements are the. l responsibility of the Commission's management. Our responsibility is to-express an opinion on these financial statements based on our audits, we conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to j obtain reasonable assurance about whether the financial statements-are free of I material misstatement. An audit includes examining, on a test basis,' evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant-l estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in-all material respects, the financial position of the Utilities Commission, City of New Smyrna Beach, as of September 30, 1989, and 1988, and the results of its operations and its cash flows for the years then ended in conformity I with generally accepted accounting principles. Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental and statistical information are presented for purposes of ' additional analysis and are not a required part of the basic financial statements of the Utilities Commission, City of New Smyrna Beach, Florida. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all-material respects in relation to the basic financial statements taken as a whole. 1 205 MAGNOLIA ST
- P.O. BOX 1226
- NEW SMYRNA BEACH, FL 32170-1226 * (904) 427-1333 252-3821
- FAX (904) 427-5823 -
MIM9ER. American las,itute of Certilled Pubhc Accountants and AICP4 Invate Companies Practice Section
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i Utilities Commission, . City of New Smyrna Beach, Florida New Smyrna Beach, Florida Page 2 of 2 l In connection with our audit, nothing came to our attention that caused us to believe that the Utilities Commission, City of New Smyrna Beach, Florida, was .I L not in compliance with any of the terms, covenants, provisions, or conditions of section 16 of Resolution No. 28-78 dated June 30, 1978, as amended. However, it should be noted that our audit was not directed primarily toward , obtaining knowledge of such noncompliance.
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New Smyrna Beach, Florida November 17, 1989 ! ll l l 2
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_ .- -. .. .- _ ~ .. . I I CENERAL PURPOSE FINANCIAL STATEMENTS l (Combined Statements - Overview) i l These basic financial statements provide a summary overview ' of the financial position as well as the operating results of : the Utilities Commission. They - also serve as an introduction to the more detailed statements and schedules
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i UTILITIES COMMISSION Statement l' . CITY OF NEW SMYRNA BEACH, F14RIDA COMPARATIVE BALANCE SHEETS l l-September 30, 1989 and 1988 y i ASSETS 1989 1988 i i UTILITY PLANT: Electric plant $39,229,967- $38,103,157 Water plant 14,771,713 14,325,687 Pollution Control plant 16,995,713 16,874,018 General Plant 4.762.069 4.482.025 ! l 75,759,462 73,784,887 Less: accumulated depreciation and amortization l (25.294.147) (23.139.496) l 50,465,315 50,645,391 l Construction work in progress -3.886.761- 1.339.507-l UTILITY PLANT-NET 54.352.076 51.984'.898 RESTRICTED ASSETS: -
' Debt Service funds' 5,067,859 5,140,544 -
Renewal and Replacement funds 3,677,300 4,470,844 , Customer's deposits. 907,953 871,457 . CR 3 Decommissioning fund 362,117 251,605 . Rate stabilization fund 90.516 16.024 ; TOTAL RESTRICTED ASSETS 10.105.745 10.750.474 CURRENT ASSETS: Cash- 521,953 395,745 - Accrued interest receivable 56,420 . 53,607 Accounts receivable (net) 1,553,631 1,223,125 Unbilled accounts receivable 1,490,395- 1,598,744 Due from other governments 30,772 70,970 Inventories 1,467,463 1,438,728 Prepaid expenses and other assets 121,889 140,228 ~ Assessments receivable 63.454 89.811 : TOTAL CURRENT ASSETS 5-305.977 5.010.958 . DEFERRED CHARCES AND OTHER ASSETS: Unamortized debt expense 550,807 l 590,875 E Deferred charges and other assets 23,543 .110,213 Assessments receivable - noncurrent 115.692 159.085 TOTAL DEFERRED CHARCES AND OTilER ASSETS 690.042 860.173 TOTAL ASSETS $70,453,840 $68,606,503 The accompanying notes are an integral part of the financial statements. I
I I i l I LIABILITIES AND UTILITY EQUITY 1989 1988 , UTILITY EOUITY1 Contributed capital $18,540,201 $17,672,840 Retained Earnings:
-Reserved for debt service 2,675,541 2,728,142 'i Unreserved 4.697.935 4.582.127 I I TOTAL UTILITY EQUITY 7.373.476 25.913.677 7.310.269 24.983.109 i
LONG-TERM DEBT. ! Note payable (not of current portion) 1,726,744 745,561 3 Revenue certificates payable (net of current portion) 36,285,000 37,090,000 - Less: unamortized discount on revenue certificates (689.602) (740.966) .l1 TOTAL LONG-TERM DEBT 37.322.142 37.094.595 RESTRICTED FUND LIABILITIES: Revenue certificates payable (current portion) 1,145,000 1,085,000 Note payable (current portion) 45,000 30,000 Accrued interest payable 1,292,834 1,313,426 Accounts payable 697,404 65,290 Customers' deposits 849,963- 778,677 Reserve for decommissioning costs 362.117 251.605 i TOTAL RESTRICTED FUND LIABILITIES 4.392.318 3.523.998 CURRENT LIABILITIES:_ Accounts payable 1,443,706 1,557,946 Accrued liabilities '544,468 569,701 -I Due to other governments 231.956 343.620 TOTAL CURRENT LIABILITIES 2.220.130 2.471.267 QIllER NONCURRENT LIABILITIES: Deferred compensated absences 490,315 '403,186 Operating reserves 115,258 45,303 Other liabilities - 85.045 TOTAL OTHER NONCURRENT LIABILITIF.S 605.573 533.534 TOTAL LIABILITIES 44.540.163 '43.623.394 TOTAL LIABILITIES-AND UTILITY EQUITY $70,453,840 $68,606,503 4
UTILITfES COHMISSION Statement 2-I . CITY OF NEW SKYRNA BEACH,- FLORIDA ' STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS = For the Fiscal Years Fnded September 30, 1989 and 1988 1989 1988 OPERATING REVEMEEE1 'Ili ' Sales $26,155,534 $24,180,899 Other revenues 261.073 261.866 ' TOTAL OPERATING REVENUES 26.416.607 24.442.765 t OPERATING EXPENSES: Production expenses 13,903,532 12,780,038-Transmission, distribu*. ion and sewage co11cetion - and treatment 2,795,429 2,657,153 ; Customer accounting 660,210 647,001 Administrative and general 3,025,338 2,888,994 Required payments to.the City of New Smyrna Beach 1,589,082 1,481,102 l State utilities tax' 308,843 291,187 , Depreciation 2.212.241 2.119.675 l TOTAL OPERATING EXPENSES 24.494.675 22.865.150 OPERATING INCOME 1.921.932 1.577.615 ADD: NONOPERATING REVENUE.
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Interest earnings 818,148 668,355 ' Other income 190,580 152,062' - Gain on disposal ~of fixed assets 6.373 =6.421 TOTAL NONOPERATING REVENUE 1.015.101 -826.838 TOTAL INCOME 2.937.033 2'404.453 LESS: NONOPERATING EXPENSES: Interest and debt expense 2,737,217 2,775,470 Other expenses 83,773 37,730 Loss on disposal of fixed assets 52.836 '8.732 TOTAL NONOPERATING EXPENSES 2.873.826 2.821.932 NET INCOME (LOSS) 63,207 (417,479) RETAINED EARNINGS - BEGINNING OF YEAR 7.310.269. 7.727.748 RETAINED EARNINGS - END OF YEAR $ 7',373,476 $ 7,310,269 1 1 \ > l The accompanying notes are an integral part of the financial statements. 5 m. gt
UTILITIES COMMISSION Statement 3 . CITY OF NEW SMYRNA BEACH, FLORIDA Page 1 of 2 , STATEMENT OF CASH FLOWS x For the Fiscal Years Ended September 30, 1989 and 1988 r 1989 1988 L CASH FLOWS FROM OPERATING ACTIVITIES ( Cash received from customers $26,611,174 $25,032,704 ; Cash paid to suppliers and employees (21,708,667) (20,970,008) ' Interest received 815,335 662,081 Interest paid (not of amount capitalized) (2.666.377). (2.698.611) { NET CASH PROVIDED BY OPERATING ACTIVITIES 3.051.465 2.026.166 CASH FLOWS FROM CAPITAL AND REIATED FINANCING ACTIVITIES: Net proceeds from issuance of long-term debt 1,026,182 775,562 Debt reduction outlays (775,000) (620,000) Contributed capital __ 867.360 794.134 l [ NET CASH PROVIDED BY CAPITAL AND I L RELATED FINANCING ACTIVITIES l'.118.542 949.696 CASH FLOWS FROM INVESTING ACTIVITIES: [- Proceeds from sale of property and equipment 17,969 9,255 Acquisition and construction of capital assets (4,706,497) (2,094,748) Purchase of investment securities (4,829,867) (4,154,042) Proceeds from sale and maturities of E investment securities 4.610.600 3.907.824 4 NET CASH USED IN INVESTING ACTIVITIES (4.907.795) (2.331.711) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (737,788) 644,151 i CASH AND CASH EOUIVALENTS - Beginnine of Year 8.087.159 l 7.443.008 F i CASH AND CASH EOUIVALENTS - End of Year $ 7,349,371 $ 8,087,159 i I i I' I The accompanying notes are an integral part of the financial statements. j 1 6 I
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p UTILITIES COMMISSION- Statement 3 CITY OF NEW SKYRNA BEACH, FLORIDA Page 2 of 2 STATEMENT OF CASH FLOWS For the Fiscal Years Ended September 30, 1989 and 1988 l ! 1989 1988 l RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY , OPERATING ACTIVITIES! ' Net income (loss) 63.207 (417.479) Adjustments to reconcile net income (loss) to net cash provided by operating activities: l m . Depreciation and amortization 2,366,318 2,340,474 Provision for losses on receivables 54,541 55,327 Loss (gain) on sale of property and equipmen 46,463 2,311 Decrease (increase) in operating assets: Accounts receivable (262,857) 279,226 Assessments receivable 26,357 71,284 Accrued interest receivable (2,813) -(6,273)' Inventories (28,735) (141,587) Prepaid expenses 18,340 10,472 Deferred charges and other assets 156,422 (84,459) Increase-(decrease) in operating liabilities: Accounts payable 517,874 (154,513) I Accrued interest payable (20,592) (16,381) 1 Due to other governments (111,665) 19,103 i Customer deposits 71,286 (7,195) ! Other liabilities 157.319- 75.856 TOTAL ADJUSTMENTS 2.988.258 2.443.645 NET CASil PROVIDED BY OPERATING ACTIVITIES $.3,051,465- $ 2,026,166 l l l l. The accompanying notes are an integral part of the financial statements, 7
ur,, .a r u ,,u .+ .s.---u.ma.- e n.mes- ..n m s. n a m + n m mm-- -umm.m.- m.m ma me.a ne u m e- w-n. a. ,u.w- ---r.s..w.m.s 84n.+ i I i I b r t I NOTES TO THE FINANCIAL STATEMENTS I I . t lI . I 4 t I lI . l
UTILITIES COMMISSION-CITY OF NEW SMYRNA BEACH, FLORIDA NOTES TO THE FINANCIAL STATEMENTS i L September 30, 1989 and 1988 Page 1 of 21
- 1.
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES 1 The accounting policies of the Utilities Commission, City of New Smyrna-Beach, (the " Utilities Commission") conform to the generally accepted accounting principles as promulgated by the American Institute of Certified Public Accountants, the Financial Accounting Standards Board, the 1 Covernmental Accounting Standards Board, and the Federal Energy Regulatory Commission. The following.is a summary of the significant policies: A. ORGANIZATION The Utilities Commission, was created in 1967 through the passage of Chapter 67 1754, Laws of Florida, Special Acts of 1967 (House Bill 1669)_ I which amended the charter of the City' of New Smyrna Beach, Florida, to. create the Utilities Commission. In a referendum held October 2, 1984, i g the voters of the City of New Smyrna Beach, Florida, approved amendments g to the City Charter. The amendments limit a Utilities Commissioner's term to three years instead of five-with no more than three consecutive terms, require City Commission approval for extensions of utility I services outside the city limits, give the City Commission the right to review and approve the Utilities Commission budget,-and. require City Commission apprrval before issuing or refunding revenuo certificates and entering into contracts exceeding four years. B. EEIORTING ENTITY I The funds and entities related to the operation of the Utilities Commission which are included in these financial statements are a i component unit of the City of New Smyrna Beach, Florida, and an integral part of the City's reporting entity. The basic financial statements are I incorporated in the City's Comprehensive Annual _ Financial Report as an enterprise fund activity. ~ In 1983, the Utilities Commission entered into a participation agreement with Florida Municipal Power Agency (FMPA) for an entitlement share of~ electric-capacity and electric energy from FMPA's undivided ownership I interest in Florida Power and Light Company's St. Lucie. Unit No. 2, a nucicar generating unit. The Utilities Commission's role in the agreement is limited to that of a participant contractually obligated to 3 l purchase electric' capacity and electric energy. The agreement between l the Utilities Commission and FMPA does not meet the criteria for inclusion within the reporting entity of the Utilities Commission. The agreement specifically provides that the arrangement is not a joint venture and neither FMPA nor the other utilities which entered into participation agreements with FMPA for entitlement shares from FMPA's undivided ownership interest in St. Lucie Unit No, 2 are accounting for the agreement as a joint venture. Accordingly, the Utilities Commission is not accounting for the agreement as a joint venture, 8 1
e UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, F1hRIDA
- NOTES TO THE FINANCIAL STATEMENTS- t September 30, 1989 and 1988 Page 2'of 21
- 1.
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (Continued) , C. BASIS OF ACCOUNTING Basis of accounting refers to when revenues and expenses are recognized , in the accounts and reported in the financial statements. It relates to the timing of the measurements made, regardless of the measurement focus applied. The Utilities Commission utilizes the accrual basis of secounting.- By utilizing this method, revenues are recognized when they l W are earned .and-expenses are recognized as they are incurred. Unbilled utility service receivables are recorded so as to provide a better - matching of service. revenues and the costs of providing the service. D. BUDGET AND BUDGETARY ACCOUNTING , An annual badget was . adopted for the electric, water and pollution 4 control utility systems. The budget was prepared on the accrual basis for the period beginning October 1, and ending September 30. By use of. . the accrual method of budgeting, revenues and expenses are budgeted.for specific periods of time and are recorded an incurred,Lalong with acquired assets, without regard to the date of receipts, or payment of cash. Budget appropriations are prepared by the administrative staff and approved as provided by law by the Utilities Commission.< Budgetary control is exercised at the departmental level. Budget' amendments, if any, can be requested by the Director of Utilities. However,'all budget
' amendments must be approved by the Utilities Commission. . Unexpended .
appropriations for operations lapse'at year-end. During the recent- ' fiscal year, the Utilities Commission made amendments to the approved 3, budget in the form of utility service rate changes. No supplemental appropriations were required for.the current year. gj E. CASH AND CASH EOUIVALENTS The Utilities Commission invests all cash balances in interest bearing I accounts. Earnings from these investments are appropriately allocated to the investing fund accounts based upon the investment equity and are used, where applicable, to finance general utilities commission operations. . For purposes of the statement of cash flows, the Commission considers I all highly liquid debt instruments purchased with original maturity dates of three months or less to be cash equivalents. j F. INVESTMEEIS Investments are recorded at cos,t or amortized cost, which approximates market. Adjustments are made to cost, for any premium or discount, which is amortized over the maturity of the investment. I<; L l 9 :
UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA ) NOTES TO THE FINANCIAL STATEMENTS j September 30, 1989 and.1988 Page 3 of 21
- 1.
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES _(Continued) L G. RECEIVABLES Allowance for uncollectible accounts ( Accounts recnivable have been reported net of the allowance for uncollectible accounts which has been provided based upon management's analysis of historical trends. Estimated unbilled revenue Utility Operating sales are recognized on the basis of cycle billings z r rendered monthly. Unbilled accounts receivable are accrued at September 1 30, to recognize the sales revenues earned between the last meter " reading date made through the end of the fiscal year. 1 H. INVENTORIES Inventories are priced at cost by the use of the "first-in, first-out" method of accounting. The effect of this method is to flow the costs of the materials and supplies in the order in which they are purc'tased and j to assign a balance sheet inventory valuation more nearly at ccrrent replacement value. Electric line transformers, electric' meters, wate: " meters and replacement units for the generating plants are classified as utility plant in accordance with accepted industry practices set forth by the National Association of Regulatory Utilities Commissioners. I. HEAMORTIZED DEBT DISCOUNT AND ISSUE COSTS Bond discounts and issuance costs are deferred and amortized over the term of the bonds using the bond outstanding method.which approxinates the interest method. Unamortized bond discounts-are presented in , aggregate in the financial statements as a reduction of the carrying-cost of the related long-term debt. Unamortized debt issuance nosts are presented as other assets. J. RESTRICTED ASSETS Proceeds from debt, funds required to be set aside for the payment of revenue bonds debt service and contingencies, and other specific aasets set aside for restricted purposes which cannot be used. for routine operations are classified as restricted assets since their exclusive use is limited by applicable bond covenants and other legal indentures. K. UTILITY PLANT Utility plant is stated at historical or estimated historical cost. The costs'of additions, replacements, and renewals of units of property are added to utility plant. The cost (estimated, if not known) of units of property retired, less net salvage, is charged to accumulated depreciation and the appropriate asset account. Donated utility plant is stated at its estimated fair market value on the date donated. 10
UTILITIES COMMISSION CITY OF=NEW SMYRNA: BEACH, FLORIDA l
. NOTES TO THE FINANCIAL STATEMFNTS ',
September 30,~ 1989 and 1988 Page 4 of 21.
- 1.
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (Continued) P Maintenance and repairs of property and replacements and renewals of - items-determined to be less than units of property, are charged to operating expense as incurred. Construction period interest is capitalized net of interest earned on unexpended construction funds in accordance with the applicable provisions of Financial Accounting Standard Number 62 and, therefore, depreciated over the remaining useful- , life of the related asset. . Depreciation is provided.for by utilization of the straight line acchod .; (half year convention in year of acquisition) calculated on a service. life basis to amortize the cost of the assets over their economih estimated useful lives which:are as follows:
- Electric System!
Production plant: Nuclear production ...................... 27 years E] 3 Diesel production ....................... 20 - 40 years- ' Transmission plant ....................... 30 - 55 years Distribution plant ....................... 28 - 45 years General plant: Structures and improvements ............. -40 years Other general plant ..................... 5 - 20 years Water System: Source of supply plant ................... 25 - 50 years Pumping plant ............................ 35 years J Water treatment plant . . . . . . . . . . . . . . . . . . . . . 40 - 50 years Transmission and distribution plant ...... 25 - 50 years i-General plant: ! Structures and improvements ............. 35 years Other general plant ..................... 10 - 35 years' y l Pollution Control System Collection plant ......................... 35 - 50 years E' 1 Pumping plant-Structures and improvements ............. 50 years gl Pumping equipment 25 years Treatment and disposal-plant ............. g] t 40 years General plant ............................ 10 '50 years - g; Common Plant l ,- Structures and improvements .............. 35' years il L. Other general plant ...................... 5 - 15 years , L. ACCRUED PAYROLL AND ACCUMUL.ATED UNPAID VACATION AND SICK PAY ' The portion of employee payroll costs paid subsequent to year-end attributable to services performed prior to year-end'is recorded and. , recognized as a current liability. Employees earn annual vacation leave at the rate of 80 hours per year for one through five years of service l and 80 hours plus eight hours for each two years service over the'first
- five years to a. maximum of 160 hours per year. All outstanding vacation i
leave is payable upon termination. t r 11
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j UTILITIES COMMISSION- _ CITY OF NEW SMYRNA BEACH, FLORIDA NOTES TO THE FINANCIAL STATEMENTS s- September 30, 1989 and 1988 Page 5 of 21
- 1.
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Employees accumulate ten hours (eight hours prior to July 1, 1986) of I sick leave credit for each month on regular pay status. Employees make an irrevocable election regarding the accumulation of credits and the amounts of credits which can be received upon termination. 'One option lg provides for the payment of all unused sick leave at 75% of the existing pay rate at termination. The sec.ond option requires the " banking" of at least 240 accumulated hours. Hours accumulated in excess of 240 hours will be paid annually at 75% of the preceding July lat pay rate. I M. CONTRIBUTIONS Contributions of capital to a proprietary fund from any source received I are recorded in an appropriately captioned contributed capital account. N. RESERVES 1 l Funded reserves are used to record a portion of retained earnings which j must be segregated for some future use and which are, therefore, not available for further appropriation or expenditure. F The reserve for nuclear re-fueling and-maintenance outage is'an 1
) operating reserve established to account for the estimated-charges to be l incurred for the removal and installation of nuclear fuel. assemblies.
Charges are made against the reserve at the time the actual re fueling takes place. The reserve for nuclear plant decommissioning costs was i entablished to account for the estimated costs of nuclear plant decommissioning. Charges against the reserve will be made'at the actual time of decommissioning. O. RATES. REVENUES AND FUEL EXPENEEE Revenues are recognized based on monthly cycle billings to customers. The rate schedules are approved by the Utilities Commission. The electric rate schedule contains an energy cost adjustment clause which ! reflects the cost of fuel as well as the energy and fuel components of l purchased power. Generally, the effect of the increases and/or 1 decreases in the cost of energy is recovered over a four month period i and is determined as the difference between actual applicable fuel costs s and the costs actually billed during the same period, l l 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. i 12
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1 UTILITIES COMMISSION a , CITY OF NEW SMYRNA BEACH, ~ FLORIDA - NOTES TO THE FINANCIAL STATEMENTS September 30, 1989 and 1988 Page 6 of 21 I 1,
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (Continued) P. RECLASSIFICATION j For comparability purposes, reclassifications have been made to the 1988 - financial statements to conform with the 1989 financial statement presentation. .
- 2. CASH DEPOSITS AND INVESTMENTS Pursuant to the applicable provisions of Chapter 280, Florida Statutes. (The Florida Security for Public Deposits Act), the State of Florida, Department of Insurance,-Bureau of Collateral Securities, and the Department cf Treasury have established specific requirements relative to the security and a collateralization for public deposits.- Accordingly, banks qualifying as a public depository in the State of Florida must adopt the necessary procedures outlined in these statutes and meet all of the requirements-of g this chapter to be designated by the State Treasurer as eligible to receive- g deposits from municipal depositors. Collateral having a market value equal i to 50% of the average daily balance for each month of all public deposits in' g excess of any applicable depository insurance is required to be pledged or deposited with the State Treasurer to secure such deposits. Additional {
collateral, up to a maximum of 125%, may be required if deemed necessary under the conditions set forth in the Act. Securities' eligible to be l pledged as collateral are. generally limited to obligations of:the United 3> States government and any state thereof and are held in the name of the State Treasurer's office. Compliance with the provisions of Chapter 280, 3 Florida Statutes, is monitored by the Department of Insurance._ g A. DEPOSITS The Commission maintains several multi-purpose cash accounts which are aggregated and swept nightly for investment in accordance with the provisions of a negotiated three-year overnight repurchase agreement, g As a part of this agreement, the Commission is required to maintain a 3 single non-interest bearin6 compensating balance account in the amount of $208,000. At September 30, 1989,- the carrying amount of the Commission's deposits was $5,476,941. Of this amount, $200,000 was insured by federal depository insurance and $5,276,941 was secured in accordance with the statutory provisions of the Florida Security for Public Deposits Act. - Included in the carrying amount of Commission deposits is $8,550 in petty cash and change funds. B. INVESTMENTS The Commission's investment policies are governed by state statutes and local resolution. At September 30, 1989, the Commission's investment in allowable investment instruments included: bonds, notes, certificates ' of indebtedness, treasury bills, and other securities which are 13
i I. UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FIDRIDA I I NOTES TO THE FINANCIAL STATEMENTS September 30, 1989 and 1988 Page 7 of 21 I
- 2. CASH DEPOSITS AND INVESTMENTS (Continued) guaranteed by the full faith and credit of the United States of America.
The Commission's investments are categorized below to give an indication of the level of risk assumed by the Commission at fieptember 30th. Category 1 includes investments that are insured or registered or for which the securities are held by the Commission or its agent in the Commission's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the brokers or dealers , trust departments or agents in the Commission's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the broker or dealer, or by its trust department or agent I but not in the Commission's name. There were no category 2 and 3 investments at September 30, 1989. Category Carrying Market-Tvoc of Investment 1 Value Value U.S. Treasury Fund ............ $2,135,388 $2,135,388 $2,135,388 ! I U.S. Treasury Bills ........... 1,598,427 1,598,427 1,603,570 U.S. Treasury State and Loca' Covernment Series (SLCS): Notes ..................... 765,696 765,696 765,696 ; ,I Bonds ..................... 651.245 651.24j 651.245 , TOTALS ................. $5,150,756 $5,150;756 $5,155,899
- 3. RESTRICTED ASSETS Restricted assets consist of the following: ,
Sentember 30. 1989 I Time Accrued September 30, Deposits / Interest .1988 Cash Investment Receivable Total Total lg Debt Service Funds! 'g 1978 Sinking Fund $ -
$1,042,461 $ 2,042 -$1,044,503 $ 1,049,049 1978 Reserve Fund - 2,034,100 13,294 2,047,394 2,083,720 1986 Sinking Fund I 319,053 565 319,618 318,561 1986 Reserve Fund - 546,988 443 547,431 553,598 i 1987 Sinking Fund - 367,983 730 368,713 369,920 1987 Reserve Fund -
740.200 _ _ . - 740.200 765.696
- 5.050.785 17.074 5.067.859 5.140.544 I
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UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, F1hRIDA NOTES TO THE FINANCIAL STATEMENTS September 30, 1989 and 1988 l Page 8 of 21 5
- 3. RESTRICTED ASSETS (Continued)
Sectember 30. 1989 Accrued September 30, Interest 1988 Cash Investment Receivable Total Total Renewal and Reelecement Funds: Res. No. 28 78 $1,225,781 $ -
$ - $1,225,781 $ 1,838,329 TDOT Project Fund 112,929 - - 112,929 161,699 l Water and Pollution "
Control Connection Fee Fund ....... 2.338.590 - - 2.338.590 2.470.816 3.677.300 - - 3.677.300 4.470.844 Customer deoosits .. 907.953 -
- 907.953 871.457 CR.3 decommissioning fund ............... 10.086 350.000 2.031 362.117 251.605 Rate Stabilization fund ............... 90.516 - - 90.516 16.024 TOTALS ...... $4,685,855 $5,400,785 $ 19,105 $10,105,745 $10,750,474
- 4. ACCOUNTS RECEIVABLE A summary of net accounta receivable at September 30, 1989 and 1988, is as follows:
1989 1988 Billed customer accounts receivable ............. $1,610,470 $1,280,450 Customer notes receivable ....................... 578 92 .g 1,611,048 1,280,542 g Less: allowance for doubtful accounts ........., (57.417) (57.417) TOTALS ................................... $1,553,631 $1,223,125 I l I 15 1 IL
s UTILITIES COMMISSION _ CITY OF NEW SMYRNA BEACH, FLORIDA NOTES TO THE FINANCIAL STATEMENTS September 30, 1989 and 1988 Page 9 of 21
- 5. FIXED ASSETS A summary of utility plant at September 30, 1989 and 1988, is as follows:
(000's omitted) Pollution . 1989: Electric Water control Common Total Land and land rights ....., $ 1,230 $ 98 $ 197 $ 7 $ 1,532 Structures and improvements 2,528 2,436 3,786 948 9,698 I Production plant, nuclear fuel and treatment plant 9,886 4,119 4,210 - 18,215 Transmission, distribution and collection plant ... 25,178 8,118 8,803 - 42,099 I Other general plant and equipment .............. 408 - - 3.807 4.215 39,230 14,771 16,996 4,762 75,759 1 Accumulated depreciation .. 14.717 3.997 4.682 1.898 25.294 24,513 10,774- 12,314 2,864- 50,465 Construction in progress .. 2.135 764 805 183 3.887 UTILITY PLANT NET $26,648 $11,538 $13,119 $ 3,047 $54,352 4 1988: Land and land rights ...... $ 1,230 $ 98 $ 197 $ 7 $ 1,532 Structures and improvements 2,502 2,405 3,781 948 9,636 i Production plant, nuclear fuel and treatment plant 9,267 4,119 4,208 - 17,594 Transmission, distribution and collection plant ... 24,692 7,704 8,688 41,084 I Other general plant and equipment .............. 412 -
._2 3.527 3.939 38,103 14.326 16,874 4,482 73,785 I Accumulated depreciation ., 13.627 3.717 4.281 1.515 _23.140 24,476 10,609 12,593 2,967 50,645 Construction in progress .. 602 390 266 82 1.340 UTILITY PLANT NET $25,078 $10,999 $12,859 $ 3,049 $51,985 Capitalized interest on outstanding tax exempt securities charged (credited) to projects during the construction period was $69,687 and $11,407, for 1989 and 1988 respectively (net of interest earned on unexpended long term debt proceeds totaling $72,756 and $18,747, respectively).
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i UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA . NOTES TO THE FINANCIAL STATEMENTS ! September 30, 1989 and 1988 Page 10 of 21
- 6. IANG TERM DEBT A. Long term debt outstanding at September 30, is as follows:
1989 1988 I Revenue Certificatest ' Utilities System Revenue Refundin5 and ! Improvement Certificates, Series 1978 -6.00% to 7.125% due serially to 1993, with 'i
$9,075,000 and $11,335,000 term certificates 3i due in 2003 and 2010, respectively . .......... $22,890,000 $23,355,000 g-Utilities System Revenue Improvement
[ Certificates, Series 1986 5.00% to 7.25% i due serially to 2001, with $4,670,000 term ~ bonds due in 2015 ............................. 6,410,000 6,500,000 Utilities System Refunding Revenue Certificates, s Series 1987 4.50t to 7.10% due serially to 2001, with $2,790,000 and $2,080,000 term bonds due in 2007 and 2011, respectively ...... 8.130.000 8.320.000 37,430,000 38,175,000 Less: unamortized debt discount ................ 689.602 740.966 , TOTAL REVENUE CERTIFICATES OUTSTANDING (NET OF UNAMORTIZED DISCOUNT) ............ 36.740.398 37.434.034 Note Payable Note payable-Florida Municipal Power Agency, as agent for The Initial Pooled Loan Project-- l
$3,000,000 maximum principal amount, with j
, variable interest rate (currently 6.25%), l principal due in installments to 2013 ......... $ 1.771.744 $ 775.561 l 4 I TOTAL OUTSTANDING 1DNG TERM DEBT ....... 38.512.142 38.209.595 ] Current Maturities! l Series 1978 Certificates ........................ 755,000 710,000 I Series 1986 Certificates ........................ 190,000 185,000-Series 1987 Certificates ........................ 200,000 190,000 . Note Payable - FMPA ............................. 45.000 30.000 j TOTAL CURRENT MATURITIES ................. 1.190.000 1.115.000 TOTAL LONG TERM DEBT (NET OF UNAMORTIZED DISCOUNT) ............ $37,322,142 $37,094,595 i The authorization for the outstanding 1978 Certificates and all subsequent j issues provides that the Utilities Commission will not issue additional ! obligations except for the construction and acquisition of additions, 17 ,
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- UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA ' NOTES TO THE FINANCIAL STATEMENTS September 30, 1989 and 1988 Page 11 of 21
- 6. LDNG TERM DEBT (Continued) r extensions and improvements to the system or for refunding purposes and except upon the conditions provided in the authorizing resolution.
The 1978 Certificates are payable from and secured by a first lien upon and . pledge of the net revenues derived from the operation of the system. The I payment of the principal of and interest on the 1986, and 1987 Certificates referred to herein are secured ratably by a first lien on and a pledge of the net revenues of the system on a parity with the outstanding 1978 I Certificates. These Certificates do not constitute general indebtedness of the Utilities Commission or the City of New Smyrna Beach, Florida (City) and the City is not obligated to levy any taxes for the payment thereof. Under the terms of its long term debt agreements, the Utilities commission has agreed to maintain certain restricted funds (see Note 3) and to comply with the covenants contained in such agreements. Certain of these agreements I contain the following provision relating to the right of the obligation holder:
"Any holder of certificates or any coupons appertaining thereto I issued under the provision hereof or any trustee acting for the holders of such certificates may by suit, action, mandamus or other proceedings in any court of competent jurisdiction, protect and enforce any and all rights, including the right to i
the appointment of a receiver, existing under the laws of the State of Florida, or granted and contained herein, and may enforce and compel the performance of all duties herein required or by any applicable statutes to be performed by the Commission or by any officer thereof. Nothing herein, however, shall be construed to grant to any holder of the certificates any lien on any real property of the Commission or the City." I i l The applicable rate of interest on the note payable to the Florida Municipal Power Agency (FMPA), as agent for the Initial Pooled Loan Project is subject to change with ten days notice from FMPA. The Loan Agreement also providos that FMPA may increase the effective rate of interest to recover the cost of interest becoming due on the FMPA obligations allocable to the loan and to recover certain other expenses from the Utilities Commission, if any, in l administering the subject Loan. B. The schedules of debt service to maturity on the outstanding revenue certificates at September 30, 1989, are as follows: 18 1 '
i p UTILITIES COMMISSION , CITY OF NEW SMYRNA BEACH, FLORIDA NOTES TO THE FINANCIAL STATEMENTS September 30, 1989 and 1988 Page 12 of 21 ;
- 6. 1DNG TERM DEBT (Continued) 1978 Certificates >
Payment Coupon Total Date Prineinal . Rate Interest Recuirements 10 1 89 $ 245,000 6.100% $ 799,503 $ 1,044,503 ( 04 1 90 250,000 6.200 792,031 1,042,031 10 1 90 260,000 6.200 784,281 1,044,281 04 1 91 265,000 6.300 776,221 1,041,221-10 1 91 275,000 6.300 767,873 1,042,873 04 1-92 285,000 6.350 759,211 1,044,211 l' 10 1 92 290,000 750,162 6.350 1,040,162 : 04 1 93 300,000 6.400 140,954 1,040,954 ' 10 1 93 310,000 6.400 731,354 1,041,354 l 04-1 94 320,000 7.000 721,434 1,041,434 10 1 94 330,000 7.000 710,234 1,040,234 3, 04 1 95 345,000 698,684 10195 355,000 7.000 7.000 686,609 1,043,684 1,041,609 3-04 1 96 370,000 7,000 674,184 1,044,184 10 1 96 380,000 7,000 661,234 1,041,234 04 1 97 395,000 7,000 647,934 1,042,934 i 10 1-97 410,000 7.000 634,109 1,044,109 l 04 1 98 425,000 7.000 619,759 1,044,759 l 10-1 98 435,000 7.000 604,884 1,039,884 E 04 1 99 3 455,000 7.000 589,659 1,044,659 10 1-99 470,000 7.000 573,734 1,043,~734
- 04-1 00 485,000 7.000 557,284 1,042,284 10 1 00 500,000 7.000 540,309 1,040,309 04-1 01 520,000 7.000 522,809 1,042,809 10 1 01 540,000 7.000 504,609 1,044,609 04-1 02 555,000 7.000 485,709 1,040,709 l
5 10 1-02 575,000 7.000 466,285 1,041,285 i 04 1 03 595,000 7.000 446,160 1,041,160 g 10 1 03 615,000 7.000 425,335 1,040,335 g. 04 1 04 640,000 7.125 403,810 1,043,810 10 1 04 660,000 7.125 381,010 1,041,010 04 1 05 685,000 7.125 357,497 1,042,497 10 1 05 710,000 7.125 333,094 1,043,094 ' 04 1-06 735,000 7.125 307,800 1,042,800 10 1 06 760,000 7.125 281,616 1,041,616 1 04 1 07 790,000 7.125 254,541 1,044,541 10107 815,000 7.125 226,397 1,041,397 04 1-08 845,000 7.125 197,363 1,042,363 10108 875,000 7.125 167,259 1,042,259 04-1 09 905,000 7.125 136,088 1,041,088 10109 940,000 7.125 103,847 1,043,847 04-1 10 970,000 7.125 70,359 1,040,359 10110 1.005.000 7.125 35.803 1.040.803
$22,890,000 $21,929,032 $44,819,032 19
s UTILITIES COMMISSION CITY OF NEW SNYRNA BEACH, FIDRIDA NOTES TO THE FINANCIAL STATEMENTS September 30, 1989 and 1988 Page 13 of 21 s
- 6. IDNG TERM DEBT (Continued)
I-L 1986 Certificates Payment Coupon Total Data Prineinal _ Rate Interest Raouirements ( 10 1 89 $ 95,000 5.200% $ 224,617 $ 319,617 04 1 90 222,148 222,148 10 1 90 95,000 5.400 222,147 317,147 04 1 91 219,583 219,583 10 1 91 105,000 5.600 219,582 324,582 04 1 92 216,643 216,643 10192 110,000 5,800 216,642 326,642 (. 04 1-93 213,453 213,453 10 1-93 115,000- 6.000 213,452 328,452
. 04 1 94 210,003 210,003 10 1-94 120,000 6.200 210,002 330,002
{ 04 1-95 206,283 206,283 10195 130,000 6.400 206,282 336,282 a 04 1 96 202,123 202,123
- 4. 10 1 96 135,000 6.500 202,122 337,122 04-1 97 197,735 197,735 10 1 97 145,000 6.600 197,735 342,735
[ 04 1 98 192,950 192,950 10 1-98 155,000 G.700 192,950 347,9501 04-1 99 187,758 '187,758 l , 10 1 99 165,000 6.800 187,757 352,757 1 04 1 00 182,148 182,148-10 1-00 180,000 6.900 182,147 362,147 04 1 01 175,938 175,938
) 10 1 01 190,000 7.000 175,937 365,937 04 1 02 169,288 169,288 10 1 02 205,000 7.250 169,287- 374,287 04 1 03- 161,857 161,857 10 1-03 220,000 7.250 161,856 381,856-04 1 04 153,881 153,881 10 1 04 235,000 7.250 153,881 388,881 04 1 05 145,363 145,363 10 1 05 250,000 7.250 145,362 395,362 04 1-06 136,300 '136,300 10-1-06 270,000 7.250 136,300 4 06,300' 04 1 07 126,513 126,513 10 1 07 290,000 7.250 126,512 '416,512 04-1 08 116,000- 116,000-10 1 08 310,000 7.250 116,000 426,000 04 1-09 104,763 104,763 10-1 09 330,000 7.250 104,762 434,762 04 1 10 92,800 92,800 10 1 10 355,000 7.250 92,800- 447,800-04-1 11- 79,931 79,931' 1
20
UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA I-l NOTES TO THE FINANCIAL STATEMENTS September 30, 1989 and 1988 Page 14 of 21
- 6. LONC-TERM DEBT (Continued) 1986 Certificates (Continued) i Payment Coupon Total Date Princival Rate Interest Recuirements -
10 1 11 380,000 7.250 79,931 459,931 l 04 1 12 66,156 66,156 i 10 1 12 410,000 7.250 66,156 476,156 ? 04 1 13 51,294 51,294 10 1 13 440,000 7.250 $1,294 491,294 i 04 1 14 35,344 35,344 g 10 1 14 470,000 7.250 35,344 505,344 g 04 1 15 18,306 18.306 10 1-15 505.000 7.250 18.306 523.306
$6,410,000 $7,993,724 $14,403.724 1987 certificates Payment Coupon Total Date Princion1 . Rate Interest. Reouirementa 10 1 89 $ 268,713 $ 268,713 1 04 1 90 $ 200,000 4.750% 268,712 468,712 10 1 90 263,963 263,963 04-1-91 210,000 5.000 263,962 10 1 91 258,713 473,962 258,713 l1 3
04 1 92 220,000 5.200 258,712 478,712 10 1 92 252,993 252,993 04 1 93 230,000 5.400 252,992 3 10 1-93 246,783 482.992 246,783 g 04 1 94 245,000 5.600 246,782 491,782 ; 10 1 94 239,923 239,923 ' 04 1 95 255,000 5.800 239,922 494,922 10 1-95 232,528 232,528 ' 04 1-96 270,000 6.000 232,527 10 1 96 224,428 502,527 g ' 224,428 g 04 1 97 285,000 6.200 224,427 509,427 10 1 97 215,593 215,593 04 1-98 305,000 6.400 215,592 520,592 ' 10 1 98 205,833 205,833 04 1 99 325,000 6.500 205,832 530,832 10 1 99 195,270 195,270 04 1 00 345,000 6.600 195,270 540,270 l m 10 1 00 183,885 183,885 04 1-01 370,000 6.700 183,885 553,885 g 10 1 01 171,490 04 1-02 390,000 7.000 171,490 171,490 561,490 g 10-1-02 157,840 157,840 04 1 03 420,000 7,000 157,840 577,840
- 10-1-03 143,140 143,140.
04 1 04 445,000 7.000 143,140 588,140 10 1-04 127,565 127,565 l 21 i
UTILITIES COMMISSION f CITY OF NEW SMYRNA BEACH, TbORIDA NOTES TO THE FINANCIA1, STATEMENTS September 30, 1989 and 1988 Page 15 of 21
- 6. IANG TERM DEBT (Continued)
( 1987 Certificates (Continued) { Payment Coupon Total Date Princigal . Rate _ Interest Recuirements 04 1 05 $ 480,000 7.000% $ 127,565 $ 607,565 ( 10105 110,765 110,765 04 1 06 510,000 7,000 110,765 620,765 10 1 06 92,915 92,915 [ 04 1 07 545,000 7.000 92,915 637,915 l 10107 73,840 73,840 04 1 08 585,000 7.100 73,840 658,840 10 1 08 53,073 $3,073 f 04 1 09 630,000 7,100 53,072 683,072 10 1 09 30,708 30,708 04 1 10- 670,000 7.100 30,707 700,707 10110 6,923 6,923 04 1 11 195.000 7.100 6.922 201.922
$8,130,000 $7,513,755 $15,643,755 C. The aggregate annual debt service requirements for the certificates and
. variable interest rate note payable in each of the next five years are as-49 follows:
Revenue Note Certificates Pavable Total 1990 ................. $ 3,358,282 $ 185,908 $ 3,544,190 1991 ................. $ 3,360,934 $ 183,006 $ 3,543,940 1992 ................. $ 3,359,363 $ '180,486 $ 3,539.849-1993 ................. $ 3,353,988 $ 182,202 $ 3,536,190 1994 ................. $ 3,353,378 $ 178,978 $ 3,532,356 D. As a part of its outstanding revenue certificate obligations, the Utilities Commission is subject to certain covenants and provisions which require specific actions to be taken by the Commission during the year. The Commission has complied with all significant contractual covenants and provisions.
- 7. PRIOR YEARS' DEFEASANCE OF DEBT In prior years, the Utilities Commission defcased certain outstanding utilities revenue certificates of the Commission and certain general obligation bonds of the City of New Smyrna Beach issued for the System payable out of revenues derived from the operation of the utilities system by placing the proceeds of new certificates in irrevocable trusts to provide for all future debt service payments on the old certificates / bonds.
Accordingly, the trust account assets and the liability for the defeased bonds are not included in the Commission's financial statements. 22
UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA I' i i NOTES TO THE FINANCIAL STATEMENTS l September 30,1989 and 1988 Page 16 of 21
- 7. PRIOR YEARS' DEFEASANCE OF DEBT (Continued)
At September 30, the following certificates / bonds are considered defensed: 1989 1988 1978 Refunding! ! Waterworks and Electric: E Series 1955+.3.75% due serially to 1993 ........ $ 572,000 $ 704,000 5 Series 1962 refunding. 3.5% due serially to 1987 and $35,000 in 1999 ......................... 35,000 35,000 m, Series 1962. 3.9% to 4.2% due serially to 2000 . i,640,000 1,685,000 g* Series 1965. 4.24 and 4.25% due carially to 2004 1,865,000 1,895,000 Sewer: i Series S.1963. 3.9% due serially to 2002 ....... 300,000 325,000 Series.T.1963. 4.0% due 2003 ................... 748,000 783,000 - Series B.1965. 3.7% to 4.1% due serially to 2003 435,000 455,000 Utilities: Series 1975. 3.75% to 6.2% due serially to 2004 2,250,000 2,350,000 Series 1975A. 5.06 to 6.6% due serially to 2005 3,010,000 3,115,000 Water and Sewer Revenue General Obligation Bonds: g. Series 1976. 4.5% to 6.2% due serially to 2001 . 4,605,000 4,855,00 E-1985 Refundine! Series 1982. 12.625% due serially from 2012 E to 2016 ........................................ 6,190,000 6,190,000 5 1987 Refunding: Series 1985. 5.75% to 9.50% due serially to 1999
- with $2,135,000 and $3,130,000 term certificates due in 2005 and 2011, respectively ............. 7,090,000 7,205,000
- 8. COMPENSATED EMPLOYEE ABSENCES Pursuant to the Utilities Commission's collective bargaining agreement and g employment contracts, the Commission provides compensatory wages for 3 accumulated vacation and sick leave credits that vest with employees. The Commission's liability for accumulated compensated absences at September 30, is as follows:
1989 1988 Current Deferred Current Deferred Vacation credits ............... $180,518 $ 41,487 $154,121 $ 38,531 ; Sick leave credit .............. 12.665 448.828 91.164 364.655 l TOTALS ................. $193,183 $490,315 $245,285 $403,186 l i l 23
UTILITIES COMMISSION s CITY OF NEW SMYRNA BEACH, T1hRIDA NOTES TO THE FINANCIAL STATEMENTS , September 30, 1989 and 1988 Page 17 of 21 s [ 9. REOUIRED PAYMENT TO THE CITY OF NEW SMYRNA BEACH. FLORIDA The legislation that created the Utilities Commission requires it to pay to the general fund of the City of New Smyrna Beach a sum equal to six percent (6%) of the gross revenues from utilities under Commission control. This payment is subordinate to the debt service requirement of all utilities revenue certificates and is recorded as a quasi external transaction for financial reporting purposes. The amount paid to the City totaled {
$1,589,082 and $1,481,102 for the years ended September 30, 1989 and 1988, respectively. The balance due to the City at September 30, 1989 and 1988, totaled $173,875 and $287,815, respectively.
- 10. EMPIAYEE PENSION PLAN The Utilities Commission contributes to the Florida Retirement System of the State of Florida, an agent multiple employer public employee retirement system that acts as a common investment and administrative agent for
[ municipalities in the State of Florida. The payroll for employees covered ( by the System for the year ended September 30, 1989, was $4,380,976. Total payroll for the year was $4,488,871. ( All full time employees are eligible to participate in the plan. All participating employees, upon attaining their norral retirement age (age 62), with 10 years of credited service are entitled to a retirement benefit { i " payable monthly for life of at least 1.6%, but not more than 1.68% of their average final compensation for each year of credited service; The average final compensation is the average annual compensation of the 5 highest years
; of compensation during creditable service prior to retirement. Beneftts
( fully vest .on reaching 10 years of creditable service.- The plan also provides for death and disability benefits.
] The funding methods and determination of benefits payable are provided in the various acts of the Florida Legislature, which created the fund, including subsequent amendments thereto. In previous years, these acts l
i provided, in general, that funds were to be accumulated from employee contributions, employer contributions, State appropriations and income from investments of accumulated funds. The act also provides that, should the accumulated funds in the fund at any time be insufficient to meet and pay the benefits due, the employer shall supplement the funds by an appropriation from current funds, or from any revenues which may lawfully be used for said purposes, in an amount sufficient to make up the deficiency. The Utilities Commission's contribution to the plan during the year ended September 30, 1989, totaled $618,929 which was 13.38% of the qualifying employees' gross wages for the period from October 1, 1988 through December 31,1988, and 14.38% for the period from January 1,1989 through September 30, 1989. The
- pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step rate benefits, estimated to be payable in the 24 i
j
UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, p1DRIDA I!! l' NOTES TO THE FINANCIAL STATEMENTS September 30, 1989 and 1988 Page 18 of 21 ] l
- 10. EMPlDYEE PENSION P111N (Continued)
( future as a result of employee service to date. The measure, which is the l actuarial present value of credited projected benefits, is intended to help i users assess the plan's funding status on a going concern basis, assess l progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among public employee retirement systems and employers, r The plan does not make separate measurements of assets and pension benefit l obligation for individual employers. The estimated pension benefit ! obligation at July 1,1988, was computed based upon assumptions determined ; through an actuarial valuation performed as of June 30, 1987. Significant ' actuarial assumptions used in the valuation include (a) a rate of return on i the investment of present and future assets of 8.06, (b) projected annual : salary scale increases of 7.$6, (c) projected annual payroll growth of 7.04, and (d) no post retirement benefit increases. The total unfunded pension benefit obligation (estimated) applicable to the
- Commission's employees is not separately determined by the actuary. The estimated pension benefit obligation was $23.4 billion for the plan as a ,
whole. The plan's net assets available for benefits on that date (valued at ~ market) were $14.0 billion, leaving an unfunded pension benefit obligation of $9.4 billion. The- representative amount of the Commission's 1988 contribution to the plan was not provided by the plan administrator, however, it is not significant in relation to the total contributions , required of all participating entities. Ten year historical trend information showing the plan's progress in 3 i accumulating sufficient assets to pay benefits when due is obtainable from the State of Florida, Department of Administration, Division of Retirement. E
- 11. SECMENT INFORMATION The Commission provides electric, water and pollution control services to the public. The following is a summary of the segment information for the electric, water, and pollution control systems: ,
Pollution j Electric Water Control l System System System Total l Operating revenue $20,841,500 $ 3,184,987 $ 2,390,120 $26,416,607 Depreciation 1,277,889 396, M9 538,083 2,212,241 Operating income (loss) 1.201,721 676,1W 44,023 1,921,932 l m; Required payments to City of New Smyrna Beach 1,256,840 189,685 142,557 1,589,082 Net income (loss) (80,411) 261,767 (118,149) 63,207 ; Contribution in aid of Construction 410,273 5,196,160 12,933,768 18,540,201 Utility plant acquisitions 1,438,980 547,037 173,227 2,159,244 Utility plant retirements 142,218 32,203 ' 10,247 184,668 , Revenue certificates payable 21,055,700 10,082,700 6,291,600 37,430,000 Utility equity 6,401,483 7,691,820 11,820,374 25,913,677 Total assets 35,540,686 16,919,179 17,993,975 70,453,840 25
UTILITIgS COMMISSION CITY OF NEW SMYRNA BgACH, FihRIDA NOTES TO THE FINANCIAL STATEMENTS September 30, 1989 and 1988 Page 19 of 21
- 12. LICAL MATTERS The Utilities Commission is engaged in routine litigation incidental to the conduct of itt municipal utilities affairs. In the opinion of the Counsel to the Commissios, no legal proceedings are pending against the Commission not .
covered by insurance which would inhibit the Commission's ability to perform its operations or materially affect its financial condition.
- 13. COHMITHENTS
- a. Acting through the Florida Municipal Power Agency (PMPA), the Utilities Commission is a participant in a portion of Florida Power and Light Company's (FPL) St. Lucie Unit No. 2, a nuclear generating unit with an original estimated net capability rating of 802 MW, St. Lucie Unit No. 2 was subsequently uprated and now has a seasonally adjusted rating of approximately 840 MW. FMPA issued St. Lucie Project Revenue Bonds, Series 1983, in the amount of $290,000,000, which were subsequently partially refunded by $284,810,000 St. Lucie Project Refunding Revenue Bonds, Series 1986 (together, the "St. Lucie Project Bonds"), for an 8.806% undivided ownership interest of St. Lucie No. 2 together with rights to receive electric capacity and electric energy under a reliability exchange a&reement. The Utilities commission's participation provides for a 9.884%
entitlement share of FMPA's 8.8064 undivided ownerchi- 1..;....L. A reliability exchange agreement provides for FMPA's exchanging $0g oi its output from St. Lucie No. 2 for a like amount from St. Lucie No I to mitigate the potential for economic loss resulting from an extended or permanent outage of St. Lucie No. 2. The Utilities Commission is not directly obligated to pay the St. Lucie Project Bonds and neither the faith and credit nor the taxing power of the City of New Smyrna Beach is pledged to payment of the St. Lucie Project Bonds. The Utilities Commission, as a participant, has entered into a power sales contract which requires payment on a "take and pay" basis for the Utilities Commission's entitlement share of the project capability for the St. Lucie Project for each month during any portion of which electric capacity and electric energy are available to the Utilities Commission from the St. Lucie Project, including electric capacity and electric energy under the reliability exchange agreement with FPL. In the event payment is not required for any month under the Utilities Commission's power sales contract, it is required to make payment for such month under its project support contract on a "take or pay" basis. The payment under the project support contract would be the amount the Utilities Commission would have been required to pay under its power sales contract for such month if any electric capacity and electric energy from the St. Lucie Project had been made available to them. As a result of these agreements, the Utilities commission is obligated to provide payments of approximately $3.4 million annually, j i 26 ' i
i i UTILITIES COMMISSION j CITY OF NEW SMYRNA BEACH, FLORIDA i NOTES TO THE FINANCIAL STATEMENTS i September 30, 1989 and 1988 Page 20 of 21
- 13. COMMITMENTS (Continued) )
I
- b. On October 14, 1988, the Commission entered into an agreement with FPL Ej regarding the future short term and long term electric transmission needs of the Commission. Pursuant to the agreement, FPL will modify and upgrade I!J certain existing FPL electric transmission facilities currently providing i electric energy to the Commission. The cost of the improvements (not to l exceed $250,000), will be reimbursed to FPL by the Commission, without '
interest, in twenty nine equal monthly installments commencing in January, l 1990. j
- c. On August 18, 1989, the Commission simultaneously entered into a i construction agreement and a related fifteen year lease agreement with Florida Power Corporation (FPC) which provides for the construction and subsequent leasing of 115 kv transmission facilities connecting their '
respective control areas with the Commission's Smyrna substation facility. Under the agreements, the lease will become effective when construction of the transmission facilities between the FPC tie point and Smyrna substation are completed and placed in service (currently expected to be May, 1992). The agreements also specify that the Commission has the ; option to purchase the transmission facilities at any time after the first ; year of the lease at a cost of $3.8 million. The lease provides for minimum monthly lease payments of $52,060, and includes a provision for insurance and real estate taxes levied against the facilities,
- d. In the year 2008, the Utilities Commission's share of decommissioning +
coste applicable to its participation in Florida Power Corporation's (FPC) 3 Crystal River Unit No. 3, a nuclear generating unit, is expected to be g approximately $4.0 million. An operating reserve has been established to account for these estimated costs. Funding of the reserve began in 1985 and, based on currently revised estimates, the Commission is expected to fund the reserve with payments of approximately $85,000 annually. Based on an assumed interest rate of 64 per annum, these annual payments, plus the interest earned thereon, is expected to be sufficient to meet the Commission's portion of the estimated future decommissioning costs. , e, At September 30, 1989, the Utilities Commission had additional unrecognized construction contract commitments of approximately $3.1 million for utility plant expansion and upgrading.
- f. Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal and state governments. Any disallowed claims, including amounts already collected, may constitute a liability of the Commission. The amount, if any, of I
expenditures which may be disallowed by the grantor cannot be determined at this time although the government expects such amounts, if any, to be immaterial. 27
UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA NOTES TO THE FINANCIAL STATEMENTS September 30, 1989 and 1988 Page 21 of 21 ,
- 14. SUBSEOUENT EVENTS On September 20, 1989, the Commission authorized the issuance of $15 million ,
in Utilities Commission, City of New Smyrna Beach, Florida, Utilities System Revenue Certificates Series 1990, to finance a portion of the cost of implementing the first phase of the Commission's Five Year Capital . I improvements Plan. These revenue certificates were authorized by the ' Commission for validation pursuant to Resolution No. 1 88, adopted on t February 9, 1988, and are scheduled for sale in January, 1990. On November 15, 1989, the Commission approved Resolution No L 89 authorizing the validation of an additional $15 million in revenuc ce?.tificates to finance a portion of the second phase of the Commission's Five Year Capital : Improvements Plan. The validation of this certificate sale has been scheduled for public hearing during December, 1989. t I : I i : I I I 28 I
. . _ . - ~ - . . - . - - . _ . - . . - . . . - - - . - _ . . - - - - - . -- - -
t I ! I : I : I SUPPLEMENTAL INFORMATION This section is composed of the following two parts: I SUPPLEMENTAL DETAIL INFORMATION OF THE ELECTRIC, WATER AND POLLUT;0N CONTROL SYSTEMS - STATISTICAL SECTION 7 s b
'1 I ;
3' I j
~
l 4
s F l I SUPPLEMENTAL DETAIL INFORMATION OF THE ELECTRIC, WATER AND POLLUTION CONTROL SYSTEMS These financial statements provide a more detailed view of the. "Ceneral Purpose Financial Statements" presented in the preceding subsection. Resolution Numbers 16-75 and 28-78 established the electric, water and pollution control systems as a single enterprise fund. These statements are presented to provide detailed inforestion on the individual electric, water and pollution control utility systems and to present the budgetary I comparisons and are not necessary for a fair presentation in conformity with generally accepted accounting principles. I I I I I I
I : VTILITIES COPMISSION Schedule 1 CITY OF NEW SHYRNA SEACif, FLORIDA [ SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For the Ftseat Year Ended Septoseer 30, 1989 With Co.gorative Actual Anomts for the Fiscal Year F.nded September 30, 1988
.I F011ution Tetals Electric Wat er Control 1989 1988 I OPERATING RTVENUESt Sales Other revenues
$20,678,4 92 $ 3,093.924 $ 2,383.118 $26,155,$34 $24,100,899 JdQ,3 91.063 ?.002 261.073 261.866 t
TOTAL OPERATING REVENUES 20.841.500 3.184.907 2.390.120 26.416.607 24.442.765 OPERATING EXPENSESt Production expensee 13,170,913 732,619 - 13,903,532 12,780,038 Transmission, dLatributton and sevate I Collection and treatment Customer accountin8 Administrative and Seneral Required payawnts to the City of 1,400,258 400,615 1,824,421 345,107 160,646 684,473 1,050,064 98,949 S16,444 2.793,429 660,210 3,025,338 2,637,153 647,001 2,888,994 New Smyrna Beach 1,256,840 189,685 142,557 1.S89,082 1,481,102 State ut111ttes tan 308,843 . - 308,843 291,187 Depreciation 1.277.889 396.269 538.083 2.212.241 2.119.675 TOTAL OPERATING EXPENSES _19.639.779 2.508.799 2.346.097 24.404.675 22.865.150 OPERATING INCOME (1455) 1.201.721 676.188 44.023 1.921.932 1.577.615 ADDt NONOPERATING REVENUTS Interest earntnas 209,973 318,814 289,361 818,148 668,3SS Other inecme 165,178 22,907 1,493 190,580 152,062 Cain on disposal of assets 5.099 1.274 - 6.373 6.421 TOTAL NONOPERATING REVENUES 380.250 342.995 291.856 1.015.101 826.838 , TOTAL INCOME (14S8) 1.581.971 1.019.183 335.879 2.937.033 2.404.453 l LESSr NONOPERATINO EXPENSFSi Interest and debt expense 1.560,411 I 723,344 453,462 2.737,217 2,775.470 Other expenses 49,701 34,072 - 83,773 37,730 Loss on disposal of assets 52.270 - 566 52.836 8.732 J , TOTAL NONOPERATING EXPENSES 1.662.382 757.416 454.028 2.873.8 3 2.821.932 NET INCOME (1455) (80,411) 261,767 (118,149) 63,207 (417.479) R,,A_ , _ .8 _ ,N-, _ 6.0,,. 21 2.2,,.89, ,995.24,, 7.,,0.2 ,.,,, ,48 RETAINED EARNINGS - FND OF YEAR $ 3,991,210 $ 2.493,660 $(1,113,394) $ 7,373,476 $ 7,310,269 I I I I -
UTILITIES COMMISSION Schedule 2 I< i CITY OF NEW SMYRNA BEACll, FLORIDA SCl!EDULE OF REVENUES, RECEIPTS AND EXTENSES . BUDGET AND ACTUAL ELECTRIC SYSTEM (NON.CAAP BUDGETARY BASIS) - For the Fiscal Year Ended September 30, 1989 Variance , Favorable E Budret Actual (Unfavorable) g REVENUES AND RECEIPTS: Direct Sales: l' Electric sales $21,350,386 $20,678,492 ($671,694) W Other revenues 174,000 163,008 (10,992) l Nonoperating revenue' g' Interest earnings 161,000 209,973 48,973 5, Other revenues (expenses) 120.000 115.477 (4.523) TOTAL REVENUES AND RECEIPTS 21.805.386 21.166.950 (638.436) OPERATING EXPENSES! Power production and fuel Transmission and distribution 13,651,369 1,295,377 13,170,913 1,400,258 480,456 (104,881) g, g Customer accounting 419,363 400,615 18,748 Administrative and general 2,006,674 1,824,421 182,253 g Required payments to the City of New Smyrna Beach 1,291,463 1,256,840 34,623 5* State utilities tax 320.256 308.843 11.413 TOTAL OPERATING EXPENSES 18.984.502 18.361.890 622.612 NET REVENUES AND RECEIPTS 2.820.884 2.805.060 (15.824) - OPERATING TRANSFERS! Sinking Funds: 1978 Certificates (1,006,162) (1,006,162) - . 1986 Certificates (544,235) (544,2") . 1987 Certificates (329,265) (331,515) (2,250) FMPA Pooled Loan (91.542) (1.971.204) (91.542) (1.973.454) g' (2.250) 3, Renewal and Replacement Funds: ; Required contribution (1,163,607) (1,163,607) . g a Unallocated fund contribution 316.920 316.920 - (846.687) (846.687) . E TOTAL OPERATING TRANSFERS (2.817.891) __(2.820.141) (2.250) BUDGETED NET CASil RECEIPTS $ 2,993 (15.081) $ (18,074) ; g i 30 l I
e UrILITIEC COMMISSION Schedule 2 CITY OF NEW SMYRNA BEACH, T1hRIDA Page 2 of 2 3CHEDULE OF REVENUES, RECEIPTS AND EXPENSES BUDGET AND ACTUAL , ELECTRIC SYSTEM (NON CAAP EUDGETARY BASIS) For the Fiscal Year Ended September 30, 1989 Variance w Tavorable Budret Actual (Unfavorable) ADDITIONS (DEDUCTIONS) REOUIRED TO RECONCILE NET CASH RECEIPTS TO , NET INCOME (CAAP BASISh Principal portion of required Sinking rund transfers $ 425,144 Excess Sinking rund transfers 41,711 Net transfers to Renewal and Replacement Fund 846,687 Cain (loss) on disposal of property and equipment (47,171) Depreciation (1,277,889) Amortiration of debt expense ( 5 3 . 812.). TOTAL ADJUSTMENTS (65.330) FET INCOME (LOSS) $ (80,411) 31
l UTILITIES COMMISSION $chedule 3 i CITY OF NEW SMYRNA BEACll, FLORIDA j SCllEDULE OF REVENUES, RECEIPTS AND EXPENSES BUDGET AND ACTUAL W WATER SYSTEM (NON.GAAP BUDGETARY BASIS) ! For the Fiscal Year Ended September 30, 1989 Variance Favorable j Budret Actuni (Unfavorable) l l EEyLWEj_AND RECEIPTS: i 1 l Direct Sales: I Water sales $ 3,046,000 $ 3,093,924 $ 47,924 lI 3' Other revenues 106,600 91,063 (15,537) Nonopetating revenue: ; Interest earnings 226,800 318,814 92,014 Other revenues (expenses) 143,000 (11,165) (154,165) i Connection fees 400.000 501.445 101.445 , i TOTAL REVENUES AND RECEIPTS 3.922.400 _ 3.994.081 71.681 2 i OPERATING EXPENSES! Water production 752,318 732,619 g 19,699 g Transmission and distribution 312,007 345,107 (33,100) Customer accounting 170,318 160,646 9,672 Administrative and general 770,254 684,473 85,781 Required payments to the City of New Smyrna Beach 187.896 189.685 (1.78o) TOTAL OPERATING EXPENSES 2.192.793 2.112.530 80.263 1 NET REVENUES AND RECEIPTS 1.729.607 1.881.551 151.944 ? ( OPERATING TPM SFERS! ' l Sinking Funds: 1978 Certificates (562,224) (562,224) - ' 1987 Certificates (351,216) (353.616) (2,400) FMPA Pooled Loan' (61.655) (61.655) . Renewal and Replacement Funds: Requir..d contribution (306,127) (306,127) - Restricted fund contribution (400.000) (501.445) (101.445) (706.127) (807.572) (101.445) TOTAL OPERATING TRANSFERS (1.681.222) (1.785.032) (103.845) BUDGETED NET CASil RECEIPTS $ 48,385 96.484 $ 48,099 , I: \
i I UTILITIES COMMISSION CITY OF NEW SMYRNA BEACil, TLORIDA
$rbedule 3 Page 2 of 2 '
SCllEDULE OF REVENUES, RECEIPTS AND EXPENSES . BUDGET AND ACTUAL , WATER SYSTEM (NON.CAAP BUDGETARY BASIS) For the Fiscal Year Ended September 30, 1989 ; Variance Favorable ADDITIONS (DEDUCTIONS) REOUIRED TO RECONCILE NET CASH RECEIPTS TO , NET INCOME (GAAP BASIS)! Connection fees $ (501,445) , Principal portion of required ' Sinking Fund transfers 289,410 I Excess Sinking rund transfers Net transfers to Renewal and Replacement rund (12,097) i 807,572 I Gain (loss) on disposal of , property and equipment 1,274 ' Depreciation (396,269) , Amortization of debt expense (23.162) TOTAL ADJUSTMENTS 165.283 NET INCOME (LOSS) $ 261,767 , I - h I I , s 1I I I 33 i l
UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, F14RIDA Schedule 4 I!
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SCllEDULE OF REVENUES, RECEIPTS AND EXPENSES BUDGET AND ACTUAL POLLUTION CONTROL SYSTEM (NON.CAAP BUDGETARY BASIS) For the Fiscal Year Ended September 30, 1989 l Variance favorable ! Budret Actual (Unfavorable) i i REVENUES AND RECEIPTS- i Direct Sales, g Pollution control charges $ 2,470,000 $ 2,383,118 $ (86,882) g Other revenues 8,000 7,002 -(998) ~ Nonoperating revenue: g Interest earnings 166,500 289.361 122,861 gi Other revenues (expenses) 4,000 2,495 (1,505) Connection fees 270.000 459.189 189.189 TOTAL REVENUES AND RECEIPTS 2.918.500 3.141.165 222.665 i OPERATING EXPENSES: gf Collection and treatment system Customer accounting 1,062,978 1,050,064 12,914 g 104,479 98,949 5,530 Administrative and general 629,094 516,444 $.12,650 Required payments to the City of New Smyrna Beach 148.200 142.557 5.643 i I TOTAL OPERATING EXPENSES 1.944.751 1.808.014 136.737 , NET REVENUES AND RECEIPTS 973.749 1.333.151 359.402 i OPERATING TRANSFERS: Sinking Funds: ' 1978 Certificates (517,788) (517,788) . - 1987 Certificates (51,219) (51,569) (350) : TMPA Pooled loan (55.803)_ (55.803) - (624.810) (625.160) (350) Renewal and Replacement Funds: Required contribution (145,864) (145,864) . Restricted fund contribution (270.000) (459.189) (189.189) (415.864) (605.053) (189.189) Sewer Assessments Fund: Contribution for operations 70.000 70.000 - TOTAL OPERATING TRANSFERS (970.674) ,,,(1.160.213) (189.539) BUDGETED NET CASil RECEIPTS $ 3,075 172.938 $ 169,863 t 34
UTILITIES COMMISSION Schedule 4 CITY OF NEW SMYRNA BEACH, FLORIDA Page 2 of 2 SCHEDULE OF REVENUES, RECEIPTS AND EXPENSES BUDGET AND ACTUAL POLLUTION CONTROL SYSTEM (NON.CAAP BUDGETARY BASIS) For the Fiscal Year Ended Soptember 30, 1989 Variance Favorable ADDITIONS (DEDUCTIONS) REOUIRED TO RECONCILE NET CASH RECEIPTS TO I NET INCOME (CAAP BASISi t Connection fees Principal portion of required
$ (459,189)
Sinking Fund transfers I Excess Sinking Fund transfers Net transfers to Renewal and Replacement Fund 140,446 45,709 605,053 I Transfer from Sewer Assessment Fund Cain (loss) on disposal of (70,000) I property and equipment Depreciation Amortization of debt expense (566) (538,083) (14.457) TOTAL ADJUSTMENTS (291.087) NET INCOME (LDSS) $ (118,149) g __ I I I I I 35 ,
I UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FlhRIDA Schedule 5 It j j i SCHEDULE OF OPERATING EXPENSES l ELECTRIC SYSTEM l For the Fiscal Years Ended September 30, 1989 and 1988 i 1989 1988 Power Production and Puel! I ' Nuclear Power Generation: Fuel $ 53,203 $ 153,988 Operation 329,123 298,530 i Maintenance 427,916 403,504 g'l Diesel Power Generation: Fuel 469,746 367,878 E' i Operation $21,581 497,999 Maintenance 84,037 91,081 Other Power Supply: j Purchased power. 10,978,917 9,941,932 ' System control and load dispatching 306.390 282.814 , 13.170.913 12.037.726 . Transmission and Distribution: Operation 1,013,560 1,037,593 Maintenance 386.698 311.172 1.400.258 1.348.765 . Customer Accountinct Operation 400.615 394.790 I Administrative and General! ; Operation 1,669,856 1,610,757 Maintenance 154.565 131.709 1.824.421 1.742.466 Reauired Pavnents to the City of New Smyrna Beach 1.256.840 1.187.019 State Utilities Taxes 308.843 291.187 4 Deoreciation 1.277.889 1.224.606 ! TOTAL OPERATING EXPENSES $19,639,779 $18,226,559 I s l I! 36'- ., t
UTILITIES COMMISSION Schedule 6 s CITY OF NEW SNYRNA BEACH, FLORIDA ~ SCllEDULE OF OPERATING EXPrJISES L- WATER SYSTEM For the Fiscal Years Ended September 30, 1989 and 1988 f L-1989 1988 (- Water Production!- Source of Supply: Operation $ 62,911 $ 56,607 Maintenance 6,728 ( Pumping: 1,926 Operation 163,133 142,329 r Maintenance 7,796 10,985 ( Water Treatment: Operation 482,073 515,185 Maintenance 9.978 15.280 [ 732~.619 742.312 Transmission and Distribution! Operation 311,820 265,837' Maintenance 33.287' 27.533 345.107 293.370 f Customer Accountine! Operation. 160.646 158.096 Administrative and General? Operation 644,670 605,855 Maintenance 39.803 40.910 684.473 646.765 Reautred Payments to the City of New Smyrna Beach 189.685 180.950 Denreciati2D 396'.269 367.515 TOTAL OPERATING EXPENSES $ 2,508,799 $ 2,389,008 37
UTILITIES COMMISSION Schedule 7 CITY OF NEW SMYRNA BEACil, F14RIDA SCllEDULE OF OPERATING EXPENSES . W POLLUTION CONTROL SYSTEM . For the Fiscal Years Ended September 30, 1989 and 1988 - l 1989 1988 Collection and Treatment System: Collection and Pumping Expenses: Operation 368,648 388,280 g'
$ $ m Maintenance 74,779 31,051 Treatment and Disposal Expenses * ?
Operation 582,454 564,017 ' Maintenance 24.183 31.670 1.050.064 1.015.018 Customer Accounting! Operation 98.949 94.115 Administrative and General! Operation 487,322 470,034 Maintenance 29.122 29.729 516.444 499.763 Reouired Payment to the City of New Smyrna Beach 142.557 113.133 Decreeintion 538.083 527.554 TOTAL OPERATING EXPENSES $ 2,346,097 $ 2,249,583 g g. I. I I' Il ' 38
I UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FIARIDA k htdule 8 SCHEDULE OF INTEREST EARNINGS For the Fiscal Years Ended September 30, 1989 and 1988 1989 1988 INTEREST EARNINGS BY SOURCE! From Investments: I Sinking funds Renewal and replacement funds Customers' deposits
$ 338,776 322,625 57,268
$ 287,130 253,372 31,417 Other 71.012 $8.121 I From Assessments 789,681 28.467 630,040 38.315 TOTAL INTEREST EARNINGS $ 818.148 $ 668,355 INTEREST EARNINGS BY SYSTEM:
Electric system $ 209,973 $ 189,191 Water system 318,014 249,235 Follution control system 289.361 229.929 TOTAL INTEREST EARNINGS $ 818,148 $ 668,355 I I I I I I 39
. . - . . . . - . - . . .. . - . - .__. - . .- . _- ~. .. -.
I I I-l STATISTICAL SECTION l Statistical tables differ from financial statements because they usually cover _more than one fiscal year and may present-non-accounting data. These tables reflect social and I- economic data and financial trends of the Utilities Commission, City of New Smyrna Beach. 1
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i i UTILITIES COMMISSION Table I CITY OF NEW SMYRNA BEACH, FLORIDA - SCHEDULE OF EXPENSES BY FUNCTION LAST TEN FISCAL YEARS ; SEPTEMBER 30, Operatine Expenses , Required - Transmission, Adminis- Payments l Distribution . trative to City of' , Fiscal Total Production and Customer and New Smyrna Year Excenses Excenses Collection Accountine General Beach ; 1980 $11,121,048 $ 5,347,656 $ 980,960 $ 259,025 $1,213,890- $ 598,205 1981 12,284,939 5,744,288 1,113,301 304,241 1,612,993 705,868 11 1982 14,921,572 7,297,762 1,409,742 315,595 1,776,28'6 826,719 , 1983 16,968,400 8,241,667 1,420,397. 400,372 2,079,755 877,629 1984 18,388,070 8,686,618 1,710,284: 496,921 2,214,716 1,047,779 - 1985 20,725,373 -10,637,458 1,868,923 547,952 2,311,726 1,122,521-1986 21,451,417 10,631,343 2,044,229 565,057 2,581,264 1,209,499 - 1987 24,012,890 11,962,054 2,430,767 614,138 2,856,~752 1,301,571 ' 1988 25,687,082 12,780,038 '2,657,153: 647,001 2,888,994 1,481',102 -; 1989 27,368,501 13,903,532 -2,795,429 660 ~,210 ' 3,025,338 1,589,082 . i 9 L. i i 40 ll.l
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Operatir4 Exnenses .Nonoceratine Excentes State Total Interest other Total Utilities -Operating and Debt Nonoperating Nonoperating ; Tax D ge[gjsQon Execnses Excense Excenses Excenses
$ 55,155 $ 962,197 $ 9,417,088 $ 1,703,960 $ - $ 1,703,960 7 57,196 1,008,326 10,546,213 1,527,731- 210,995 1,738,726 I 84,350 1,284,052 12,994,506 1,927,066 - 1,927,066 84,181 1,515,523~ 14,619,524 2,314,563 34,313 2,348,876 145,297 1,604,757 15,906,372 2,465,284 16,414 2,481,698 170,406 1,625,220 18,284,206 2,376,681 64,486 2,441,167 241,059 1,674,114 18,946,565 2,421,468 83,384 -2,504,852
'. 243,184 1,885,382 21,293,848 2,583,191 135,851 2,719,042 291,187 2,119,675 22,865,150 2,775,470 46,462 2,821,932 308,843 2,212,241 24,494,675 2,737,470 136,609 2,873,826 I \ l ( l 41 I
UTILITIES COMMISSION Table II CITY OF NEW SMYRNA' BEACH, FLORIDA
- SCllEDULE OF REVENUES BY SOURCE-IAST TEN FISCAL YEARS SEPTEMBER 30, Operatine Revenues Pollution l Fiscal Total Electric Water Control-Year Revenues System System- System Total 1
1980 $ 11,457,983 $ 8,128,944 $ 1,143,160 $ 861,954 $.10,134,058 : - 1981 13,218,442 9,810,442 1,154,658 1,020,688 11,985,788 1982' 14,937,949 11,152,100 1,456,125 1,111,216 13,719,441 - ' 1983 16,541,534 12,026,330 1,980,611' .1,178,922- 15,185,863 . 1984 19,010,464 13,800,387 2,430,016 1,291,324 17,521',727 / 1985 20,792,509 15,473,671 2,615,605 1,446,702 ' ~ 19,535,978' 1986 21,204,306 15,743,029 2,735,021 1,754,963.. 20,233,013 1987 23,575,256 17,714,974 2,925,916 1,831~,044 ' 22,471,934 25,269,603 1988 19,467,476 3,050,904 1,924,385 24,442'765, 1989 27,431,708- 20,841,500 3,184,987 2,390,120 26,416,607 L i i
. - _ . _ . - - _ _ _ = _ _ _
L I Nononeratine Revenues I Interest Earnines other Income Total i
$ 1,153,818 $ 170,107 $ l',323,925 ,
1,010,548 222,106 1,232,654 ! 1,111,615 106,893 1,218,508 1,144,035 211,636 1,355,671 1,076,576 412,161 1,488,737 1,091,630 164,901 1,256,531 I 818,337 152,956 971,293 1 665,119 438,203 1,103,322 668,355 158,483 826,838 , 818,148 496,953 1,015,101 I 1 I i I i 43 l l
l UTILITIES: COMMISSION Table III CITY OF-NEW SMYRNA BEACH, FLORIDA DEMOCRAPHIC STATISTICS ' LAST TEN FISCAL YEARS' SEPTEMBER 30, New Smyrna ' Beach's- Per County School'(5) E, Fiscal Estimated Population Capita Income Unemployment Rate- Percent g' Year (1) (3) (4) Enrollment Attendance - 1980 13,310 $ 8,139 6.5%. 3,391 96%, - 1981 13,634 9,057 4.8 3,375 96 . 1982 13,653 9,734 (4) 6.8 3,318 96 ;
'1983 13,829 10,220 (2) 6.7 3,665 97' 1984 14,104 (2) 10,629 (2) 5.2 3,710: 971 1985 14,697 (2) 11,593-(2) 4.4. 3,862 9 7 --
1986 15,000 (2) 11,719 (2) 5.0 4,123 96 1987 15,344 11,719 (2). 4.9 4,219 96 1988 15,647 11,800 4.4 4,240 94~ 1989 17,266'- 13,401 4.5. - 4,445 95 (1) obtained from University of Florida, Bureau of Economics andiBusiness Research. (2) Estimated, actual amounts not available. 1 (3) Obtained from U.S. Department of Commerce, Bureau of Economic Analysis. . (4) State of Florida, Department of Labor and Employment Security. J (5) Volusia County School Board.- includes grades K-12, Coronado Beach Elementary, Chisholm Elementary, New Smyrna Beach Middle School, New Smyrna Beach Senior High, Read-Pattillo Elementary and Sacred Heart, a .j private school. 44
UTILITIES COMMISSION Igble IV _ CITY OF NEW SMYRNA BEACH, FLORIDA - PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS (1) 1AST TEN FISCAL YEARS SEPTEMBER 30, .! [ construction Savings and Number Value Bank Loan Fiscal of of Deposits Deposits Assessed Year Permits Construction (000's) (000's) Value 1980 582 $ 21,103,303 $ 93,460 $ 167,018 $ 246,627,345 1981 539 25,229,289 -100,676 182,271 315,992,191 1982 550 11,111,417 104,324 192,305 421,495,317 l 1983 718 23,730,247 123m 924- 222,419 479,806,754 1984 937 35,666,534 144,154 260,142 550,410,029 [ 1985 2,006 32,782,563 166,126 267,464 632,540,204 1986 2,286 26,095,656 192,712 251,404 711,561,352 1987 2,501 26,927,079 185,428 306,928 763,718,138 1988 2,246 30,639,766 190,477 284,244 834,037,543 ! 1989 2,502 23,381,587 244,312 228,568 894,693,552 i Sources: a Construction - City of New Smyrna Beach, Florida Building Department -j Deposits - Confirmed directly by banks and savings 1and loan ! associations Assessed value --Volusia County, Florida Finance j Department i (1) j The above data is related exclusively to area within the municipal ; j limits of the City of New Smyrna Beach, Florida ' 1 l l 1
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UTILITIES COMMISSION Table V- ' ' CITY OF NEW SMYRNA BEACH, FLORIDA Page 1 of 2 SCHEDULE OF. INSURANCE IN FORCE l September 30, 1989 Coverage and Policy Policy Liability Insurine Company Number Period Details of Coverace Limits .Qpmerehensive ' General Liability I Nutmeg Insurance Co. 21CENSK1693 12 01 88 Combined bodily $1,000,000 l 12-01-89 injury and - property damage Business Auto . . Twin City Fire Insurance Company 21CESSK4315 12 01-88 Liability, $1,000,000 , 12-01-89'- bodily injury. and property- j, combined- W' Comprehensive Actual cash < value less
$250 deductible Collision Actual cash .
value lesc
$250 deductiblc~
Uninsured motorist $100,000 No fault Statutory Business Property American Guarantee and Liability Insurance Co. CPO 330-86-70-03' 12-01-88 Buildings and $15,126,093 12-01-89 contents with $10,000 deductible; i and 90% co-insurance Accounts receivable $850,000 with . <
$500 deductible 1 Valuable papers $100,000'with -1 and records $500 deductible contractors' $422,833 with equipment $500 deductible Computer $160,000 with equipment $500 deductible 46
y UTILITIES COMMISSION Table V [ CITY OF NEW SMYRNA BEACll, FLORIDA Page 2 of 2 SCllEDULE OF INSURANCE IN FORCE September 30. 1989 Coverage and Policy Policy Liability {' Insurine Company Number Period Details of Coverare Limits [: Crime l Aetna Casualty and Surety Company 35BY100539780 12 01 88 Employee crime $100,000 BCA 12 01-89 $1,000 deduct.
'ible Money and securities $ 50,000 Counterfeit currency $ 5,000 Depositors' forgery $100,000 Boiler and Machinerv '
Creat Northern Insurance Company 7827-4432 9-30 89 Breakdown due to $5,000,000 with 9 30 90 accident $10,000 deduct-ible Nuclear Enercy Damace American Nuclear Insurance and Mutual Atomic Energy Liability
- Underwriters and Nuclear Electric Insurance Ltd. 5213 & TA5244 10 09-88 Primary property $500 million 10-09 89 X87187 & X87015 11-15-88 Excess property .$845 million 11-15 89 (Excess of $500 million) s NF195 & MF91 1-01-89 Primary liability $160 million' 1-01 90 NS347 & MS65 12-31-88 Suppliers and $160 million 12-31-89 transporters liability N 35 & M-35 1-01 Secondary financial $30 million per 1 01-90 protection occurrence NW103 & NW62 1 01 89 Master Workers Torts $160 million 1-01-90 per occurence and' aggregate Public Officials and Employees Liability International Surplus Lines Ins. Co. 106409D443 7-28-89 Liability $500,000 7-28-90 retentions
$10,000/ loss- J Workers' Compensation Florida Municipal Self-Insurers' Fund 109 10 01-89 Statutory coverage Statutory 10 01-90 Employers liability $100,000 l 47 l
UTILITIES COMMISSION TABLE VI CITY OF NEW SMYRNA-BEACll, FLORIDA TEN LARGEST WATER-CUSTOMERS September 30, 1989-Consumntion Revenues Billed Percent Percent Gallons -of of (000's) Total Amount Total
- 1. Brandywine Enterprises 20,016 1.66% '$ 27,164 0.88%
- 2. Cedar Dunes llomeowners Association 13,527 1.13% 16,805 0.54%
- 3. Rinker Materials 12,088 1.01% 14,108 0.46% -
- 4. Federal llousing Authority 11,921 0.99% 17,602 0.57% .
- 5. Islander Beach Lodge 10,954' O.91% 18,202 0.59% _
- 6. Pelican Condominium 10,033 'O.83% 17,538 0,57%
7.-Suger Tree by Cardinal 9,455 0.79% 13,956 0.45%
- 8. Oceanview Towers llomeowners 8,979 0.75%. 15,599 '0,51% i
- 9. Sandpiper llomeowners 8,793 0.73% 16,717 0.59% I: 1
- 10. Golden Arms llomeowners 8.453' O.70% 13.909 .0,451_ '
TOTALS 114,219 9.50% $171,600 5.61% Ii1 B; I 48 l
UTILITIES COMMISSION- TABLE VII , CITY OF NEW SMYRNA BEACH, FlhRIDA TEN LARCEST ELECTRIC CUSTOMERS [ September 30, 1989 Kilowatt Hour Sales _ Revenues Billed Percent Percent (kWh) of of (000's) Total Amount Total
- 1. Fish Memorial Hospital 4,463 1.79% $ 336,377 1.61%
- 2. Publix Supermarket (#0191) 2,862 1.15%_ 216,856 l'.04%
- 3. Publix Supermarket (#0335) 2,615 1.05%- 194,822 0.93%
- 4. Utilities Commission Pollution .!
Control Plant 2,422 0.97% 181,798 0.87% . i
- 5. Volusia County School Board Junior High School 2,244 0.90% 191,490 0.92% !
- 6. Winn Dixie Supermarket (#2302) 1,826 0.73% 137,471 _0.66% .l
- 7. Food Lion Corp. 1,669 0.67% 125,806 0.60%
J
- 8. K-Mart 1,601 0.64% 126,767 0.61%
j
- 9. Islander Beach Lodge 1,485 0.59% 118,304 -0.57%
- 10. Ocmulgee Fields Inc. 1.386 0,56% 1111522 0,53% l TOTALS 22,573 9.05% $1,741,213 8.34%- !
i 8 l 1 49
r UTILITIES Com1SSION Table Vilf CITT OF NEW SHYRNA BEACH, FLORIDA - COMPARAT!YE BALANCE SHEETS September 30, ASSETS 1989 1988 1987 1986 1985 177fLITY PLANT: Electrio systee $39,229,967 $38,103.157 $37,203,666 $28,193,908 '$27,390,036 Water aretee 14,771,713 5 14,325,687 13,397,752 .12,789,175 -12,605,602 Pollution Control system 16,995,713 16,874,018 16,472,673 16,320,669 16,237,105 General Plant 4.762.069 4.482.025 4.331.701 3.703.838 3.103.845 75,759,462 73,784,887 71.405,792 61,007,590 59,336,588 Lease A11ovence for depreciation and amortisation f25.294.147) (23.139.496) (20.949.088) (19.164.023) (17.575.992) 50,465.315 50,645,391 50,456,704 41,843,567 - 41,760,596 Construction work in progrene __3.886.761 1.339.507 1.692.246 __2.JRjl1 1.656.018
.l
;i UTILITY PLANT-NET 54.352.076 51.984.898 52.148.950 44.490.180 43.416.614 RISTRICTED ASSETS!
Debt Servtco funds 5,067,859 5,140,544 4.974,756 4,282,877' 4,357,878 [ i Renewal and Replacement funds- 3,677,300 4,470,844 3,586,775 4,840,077 3,093,744 Construction funds - - - - _2.314,408 Customers' deposits 907,953 871,457 887,456 764,268 673,636 CR 3 deconunissionin8 fund 362.117 251,605 153,603 109,733 68,173 ; Rate stabt11:ation fund 90.516 16.024 - 1 I TOTAL RESTRICTED ASSETS 10.105.745 10.750.474 9.602.590 9.996.955 10.507.839 ! CURRINT ASSETS Cash 521.953 395,745 653,260 '1.139,127' 976,264. '! Accrued interest receivable 56,420 53,607 47,334 47.413 63.73fe j Accounto receivable (net) 1,553.631 1,223,125 1,209,442 918,271 1,006,914 Unbilled accounto receivable 1,490,395 1,598,744 1,969,057 -1,360,322 1,456,396 Due from other Sovernments ( 30,772 70,970- 48,893 74,275 161,674 Inventories 1.467,463 1,438,728 1.297,140 '1,272,477 1.041,736 Prepaid expenses and other assete 121,889 140,228 150,701 109,563 .116,109 Assessments receivable 63.454 89.811 102.639 114.355 138.310 TOTAL CURRENT ASSETS 5.305.977 5.010.958 5.478.466 5.035.803 '4.961.133 - DEFERRED CHARCES AND OTHER ASSETSr Unamortised debt expense 550,807 590,875 631,730 546,456 555,240 Deferred char 8es and other assets 23,543 110,213 25,756 25,103 26,633 l Assesscents receivable - noncurrent 115.692 159.085 217.541 308.597 476.659 i 1 TOTAL DEFERRED CHARCES AND OTHER ASSETS 690.042 860.173 875.027 880.156 1.058.532 I - TOTAL ASSETS
$70,453,840 $68,606,503 $68,105,033 $60,403,094 $59,944,118 Il ,
1 50
ger ? l 1 LIABILITIES AND UTILITY EQUITY 1989 1988 1987 1986 1985 I UTilftY EOUITY Contributed capital Retained Earningst
$18,540,201 $17,672,840 $16,878,706 $15,607,920 $14,580,916 I
1 Reserved for debt servlee 2,675,541 2,728,142 -2,704,948 2.375,957 2,466,824 Unrese rved I 4.697.935 4.582.127 5.022.800 7.174.970 7.331.214 7.373.476 7.310.269 7.727.748 9.550.927 9.798.038 TOTAL UTILITY EQUITY 25.913.677 24.983.109 , 24.606.454 25.158.847 24.378.954 i LONG-TERM DEBTr Note payable (net of current portion) Revenue certificates payable (not of current portion) 1,726,744 745,561 - - - 36,285,000 37,090,000 37,855,000 30,890,000 31,415,000 Less Unaeortised debt discount f689.602) i TOTAL 14NG-TERM DEST 37.322.142 f740.966) 37.094.595 (793.350) 37.061.650 (711.500) 30.178.500 (722.938) 30.692.062 RESTRICTED FUND LIABILITIES: Revenue certifteates payable (current portion) 1,145,000 1,085,000 940,000 730,000 700,000 1 Notes payable (current portion) Accrued interest payable 45,000 1,292,834 30,000 1.313,426 1,329,808 1,176,920 j Accounts payable 1.191,054 697,404 65,290 296,238 283,548 163,858 Customers' deposits 849,963 778,677 785,872 650,526 556,411 Reserve for decomissioning costs 362.117 251.605 153.603 109.733 68.173 TOTAL RESTRICTED FUND LIABILITIES 4.392.318 3.523.998 3.505.521 2.950.727 2.679.496 CURRENT LIABILITIES: l- Accounts payable Acerued liabilities 1,443,706
$44,468
.1,557,946 569,701 1,481,512 689,301
-1,034,491 556,684 1,152,989 480,477 Due to other Lovernments 231.956 343.620 324.517 161.433 287.2f6 TOTAL CURRENT LIABI!! TIES 2.220.130 2.471.267 2.495.330 1.752.608 1.920.722 OTffER NONCURRENT LIABILITIES:
Deferred compensated absences 490.315 403,186 329,214 299,404 257,951 Operatins reserves 115,258 45,303 106,864 63,007 14,933 1 Other 11ab111ttes - 85.045 - - - ( TOTAL DEFERRED CREDITS AND OPERATING RESERVES 605.573 533.534 436.078 362.411 272.884 TOTAL LIABILITIES 44.540.163 43.62?.394 43.498.579 35.244.246 35.565.164 I l TOTAL LIABILITIES AND UTILITY EQUITY $70,453,840 $68,606,503 $68,105,033 $60,403,093 $59,944,118 i 51
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1 j
.l UTILITIES COP 9(IS$30N Table IX CITY OF NEW SMYRNA BEACH, FLORIDA STATEMENT OF REVENUES, EXPENSES AND CHANOES IN RETAINED F.ARNINGS l For the Flacal Years Ended September 30, 'j i
1 1989 1988 1987 1986 1985 OPERATING REVENUES:
.Salee $26,155,534 $24,180,899 $22,234,268 $20,084,838 $19,395,812 ;
Other revenuse 261.073 261.866 237.666 148.175 140.166 . l TOTAL OPl3tATING REVENUES 26.416.607 24.442.765 22.471.934 20.233.013 19.535.978-OPZRATING EXPENSES: Production expenses 13,903,532 12,780,038 11,962,054 10,631,343 10,637,458 Transmission, distribution and sewage collection and treatment 2,795,429 2,657,153 2,430,767 2,044,229 1,868,923 Customer accounting 660,210 647,001 614,138 565,057 547,952 ,i Administrative and Seneral 3,025,338 2,888,994 2,856,752 2,581,264 2,311,726 Required payments to the City of New Smyrna Beach 1,589,082 1,481.102 1,301,571 1,209,499 1,122,521 Stato utt11ttes tas 308,843 291,147 243,184 241,059 170,406- i Depreciation 2.212.241- 2.119.675 1.885.382- 1.674.114 1.625.220 l TOTAL OPERATING EXPENSES 24.494.675 22.865.150 21.293.848 18.946.565 18.284.206 OPERATING INCOME 1.921.932 1.577.615 1.178.086 1.286.448 1.251.772 ADD, NONOPERATING REVENUEt Interest earnings 818.148 668,355 665,119 818,337 1,091,630 Other income 190,580 152,062 148,241 151,326 161,610 Cain on disposal of fixed assets 6.373 6.421 289.962 1.630 3.291 9 96 TOTAL NONOPERATING REVENUE 1.015.101 826.8?S 1.103.322 971.293 1.256.531 TOTAL INCOME 2.937.033 2.404.453 2.281.408 2.257.741 2.508.303 LESSr NONOPERATING EXPENSESt , Interest and debt expense 2,737,217 2,775,470 -2,583,191 2,421,468 2,376,681 Other expenses 83.773 37,730 101,482 23,423 63,926 Lose on disposal of fixed aJsets 52M . 8.732 34.369. 59.961 560 i TOTAL HONOPERATING EXPENSE 2.873.82g 2.821.932 2.719.042 2.504.852 2.441.167 ' NET INCOME (LOSS) BEFORE. INFREQUENT AND IXTRAORDINARY ITEMS 63,207 (417,479) (437,634) (247,111) 67,136 INFREOUENT ITEM: Loss from sale of steam senerating plant - - - - 532.377 NET INCOME (LOSS) BEFORE EXTRAORDINARY ITDt 63,207 (417.479) (437,634) (247,111) (465.241) EXTRAORDINARY ITD4: Loss from defeasunce of debt - - 1.385.545 - 1.206.672 NET INCOME (LOSS) 63,207 (417,479) (1,823.179) (247,111) (1,671,913) RETAINED EARNINGS - BEGINNING OF YEAR 7.310.269 7.727.748 9.550.927 9.798.038 11.469.951 RETAINED EARN 1rMS - END OF YEAR $ 7,373,47d S 7,310,269 $ 7,727,748 $ 9,550,927 $ 9,798,038 3 1 52 r
I I UTILITIES CotNISSION Table X CITY OF NEW SMYRNA BEACH, FLORIDA , STATEMENTS OF CASH FIDWS For the Piscal Years Ended September 30, 1989 1988 1987 1986 1985 CASH FLOWS FROM OPERATING ACTIVITIFS Cash received from customere $26,611.174 $25,032,704 $22,230,085 $20,781,824 $18,882,987 Cash paid to suppliers and employees (21,708,667) (20,970,008) (18,798,903) (17,275,113) (16,514,931) Interest recetved 815,335 662,081 665,200 834,654 1,104,177 Interest paid (not of amount capita 11:ed) (2.666.377) f2.698.611) f2.332.546) f2.415.380) f2.421.901) NET CASH PROVIDED BY OPERATING ACTIVITIES 3.051.465 2.026.166 1.763.836 1.925.985 1.050.332 LASH FLOWS FROM CAPITAL AND RELATED FPOM FINANCING ACTIVITIES: Net proceeds from issuance of long-term debt 1,026,182 775,562 14,329,128 - -7,388,332 Debt reduction outlays (775,000) (620,000) (8,804,557) (495,000) (7,761,672) ' contributed capital 867.360 794.134 1.270.785 1.027.004 989.593 NET CASH PROVIDED BY CAPITAL AND RELATED FINANCING ACTIVITIES 1.118.542 949.696 6.795.356 532.?04 616.253 CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale of property and equipment 17,969 9,255 333,985 90,701 321,206 Acquisition and construction of capital assets (4,706.497) (2,094,748) (9,773,409) (2,896,710) (2,456,659) Purchase of investment securities - (4,829,867) (4,154,042) (1,797,166) (1,426,226) (2,099,616) Proceeds from sale and maturities of investment securities 4.610.600 3.907.824 1.353.804 1.676.700 2.487.414 NET CASH USED IN INVESTING ACTIVITIES f4.907.795) f2.331.711) f9.882.786) f2.555.535) fl.747.655) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (737,788) 644,151 (1,323,594) (97,546) (81,070) CASH AND CASH EOUIVALENTS - Berinnina of Year 8.087.159 7.443.008 8.766.602 8.864.148 8.945.218 CASH AND CASH EOUfVALENTS - End of Year $ 7.349,371 6 8,087,159 8 7,443,008 $ 8,766,602 $ 8,864,148 RECONCILIATION OF NET INCOME TO NET CASH PROVTfiED BY OPERATING ACTIVITIESt I Net income (loss) Adjust.eents to reconcile not income (loss) to net cash provided by operating activities: Estraordinary loss 63.207 8 (417.479) $fl.823.179) $ (247.111) $ft.671.913)
. - - 1,385,545 - 1,206,672 I
Depreciation and amortisation 2,366,318 2,340,474 2,134,005 1,694,336 1,639,778 Provlsion for losses on receivables 54.541 55,327 41,015 68,178 72,200 Loss (Sain) on sans of property and equipnent 46,463 2,311 (255,593) 58,331 529,646 Decrease (increase) in operating assets: Accounts receivable (262,857) 279,226 (915,539) 203,938- (1,022,168) Assessments receivable 26,357 71,284 102,771 192,017 206,907 Accrued interest receivable (2,813) (6,273) 80 16,317 12,547 Inventories (28,735) (141,587) (24,662) ..(230,741) (206,999) Prepaid esponses 18,340 10,472 (41,138) - 6,546 78,111 Deferred charges and other assets 156,422 (84,459) (651) 1,530 660 Increase (decrease) in operating Itab111ttes: Accounts payable 517,874 (154,513) 459,710 1,192 292,228 Accrued interest payable (20,592) (16,381) 152,887 (14,134) (59.778) Due to other sovernments (111,665) 19,103 163,084 (125,823) 131,174 Customer deposits 71,286 ,2,195) 115,346 94,115 (5,558) Other liabilit tes 157.319 75.856 250.155 207.294 (153.175) TOTAL ADJUSTHENTS 2.988.258 2.443.645 3.587.015 2.173.096 2.722.245 NET CASH PROVIDED BY OPERATING ACTIVITIES $ 3,051,465 f 2,026,166 $ 1,763,836 $ 1,925,985 $ 1.050,332 I I 53
j UTILITIES COMMISSION Tabic XI CITY OF NEW SMYRNA BEACH, FLORIDA SELECTED SEGMENT INFORMATION September 30,
' Pollution Water Control l Electric i i
System System System Total September 30. 1989 Operating revenue $20,841,500 $ 3,184,987 $ 2,390,120 $26,416,607 Depreciation 1,277,889 396,269 538,083 2,212,241 Operating income (loss). 1,201,721 676,188 44,023 1,921,932 Required payments to City of New Smyrna Beach 1,256,840 189,685 142,557 1,589,082 { Net income (loss) (80,411) 261,767 (118,149) 63,207 Contributions in aid of construction 410,273 5,196,160 12,933,768 18,540,'201 Utility plant acquisitions 1,438,980 547,037 173,227- 2,159,244 Utility plant retirements 142,218 32,203 '10,247 184,668 Revenue Certificates payable 21,055,700 10,082,700- . 6,291,600 37,430,000 Utility equity 6,401,483 7,691,820 11,820,374 25,913,677 - Seotember 30. 1988 Operating revenue $19,467,476 $ 3,050,904 $ 1,924,385 $24,442,765 Depreciation 1,224,606 367,515 527,554 2,119,675 Operating income (loss) 1,240,917 661,896 (325,198) 1,577,615 Required payments to City of New Smyrna Beach 1,187,019 180,950 113,133 1,481,102 Net income (loss) (51,032) 186,970 (553,417) (417,479) Contributions in aid of construction 410,273 5,443,804 11,818,763 17,672,840' Utility plant acquisitions 1,023,925 996,032 427,530' 2,447,487 ., Utility plant retirements 34,240 30,516 3,636 68,392 Revenue Certificates payable 21,454,400 10,299,450 6,421,150 38,175,000 Utility equity . 6,481,894 .7,677,697 10,823,518 24,983,109 ll; September 30. 1982 Operating revenue $17,714,974 $2,925,916 $1,831,044 $22,471,934 ! Depreciation 1,034,223 337,457 513,702 1,885,382 Operating income (loss) 883,855 618,625 (324,394) 1,178,086 Required payuents to City of New Smyrna Beach 1,020,323 173,449 107,799 1,301,571 Net income (loss) (572,267) (566,931) (683,981) (1,823,179) Contributions in aid of ' ~ construction 410,904 4,989,643 11,478,159 16,878,706 ., Utility plant acquisitions 9,712,604 741,641- 273,531 .10,727,776 Utility plant retirements 292,121 13,229 24,223 329,573 Revenue Certificates payable 21,801,167 10,493,805 6,500,028 38,795,000 Utility equity 6,533,557 7,036,566 11,036,331 24,606,454-4 11 54 m
a Pollution Electric -Water Control System System System Total . September 30. 1986 < Operating revenue $15,743,029 $2,735,021 $1,754,963 $20,233,013 Depreciation 856,322 323,705 494,087 1,674,114 [ Operating income (loss) 955,089 600,565 (269,206) 1,286,448' [- Required payments to City of New Smyrna Beach 945,448 159,907 104,144 l',209,499 [ Net income (loss) 23,446 174,454 (445,011) .(247,111) t' Contributions in aid of construction- 384,069 4,297,608 10,926,243 15,607,920 Utility plant acquisitions 1,316,215 434,503 153,051 1,903,769 ' Utility plant retirements 198,494- 29,156 5,118 232,768 Revenue Certificates payable 15,010,821' 10,082,448 6,526,731 31,620,000 Utility equity 7,078,989 6,911,462 11,168,396 25,158,847 - September 30. 1985 Operating revenue $15,473,671 $2,615,605 -$1,446,702 $19,535,978 i Depreciation 837,482 309,663 478,075 1,625,220 Operating income (loss) 1,134,359 584,151 (466,738) 1,251,772' Required payments.to City of New Smyrna Beach 884,966 153,593 83,972 1,122,531 Net income (loss) (685,780) (354,042) (632,091) (1,671,913) Contributions in aid of construction 340,617 3,754,527 10,485,772 14,580,916 Utility plant acquisitions 1,235,742 972,978 898,111 3,106,831 Utility plant retirements 2,244,185 48,646 2,070 2,294,901 Revenue Certificates payable 15,246,330 10,236,900 6,631,770 32,115,000 Utility equity 7,012,091 6,193,927 11,172,936 24,378,954 1 I i l l 55 '
L UTILITIES CopMIS$10N - Table X11 CITY OF NEW SMYRNA BT.ACH, FLORIDA SCHEDULE OF REVENUE CERTIFICATE COVERACE September 30, 1989 1988 1987 1986 1985' i i i Oross Revenue Per Cert ificate Resolution t l Operatins revenues $26,416,607 $24,442,763 $22,471,934 $20.233,013 $19,535,978 Interest and other income (excludin8 construction fund interest earnings) 1,006,728 820,417 813,360 876,820 1,010,940 (' Connection fees 806,571 756,976 1,180,590 358,390 806,705 Assessment collections 69.750 71.284 101.891 190.943 210.910 28.301.656 26.091.442 24.567.775 22.259.166 21.564.533 E Ennenses Per certificate Resolution Operatin8 expenses 24,494,675 - 22,865,150 21,293,848 18,046,565 18,284,206 Lesst Depreciation expense (2,212,241) (2,119,675) (1,885,382) (1,674,114) (1,122,521) Required payments to the City (1.589.082) (1.481.102) fl.101.571) (1.209.499) (1.625.220) 20.693.352 1 254.373 18.106.895 -16.062.952 15.536.465 INCOME AVAILABLE FCR DEST SERVICE 7.608.304 6.827.069 6.460.880 6.196.214 6.028.068 Annual liebt Se rvlee Recutrements: Principal 765,000 725,000 515,000 495,000 365,000 Interest (less accrued interest frem issuance) 2.597.110 2.637.382 2.6e0.317 __ 2.362.465 2.429.728 -
$ 3,362,110 $ 3,362,382 8 3,175.317 $ 2.857,465 $ 2,794,728 COVERAGE RATIO (TIMES) 2.26 2.03 2.03 2.17 2.16 s
t 1 I, 56 _ _ _ . _ _ . _ . _ _ _ _ _ _ . _ - _ . - _ _ _ _ - - _ _ _ _ m -'s-^- e m y
f Ill . UTILITIt$ CDMMISSION Table Xfff CITY OF NEW SMYRNA BEACH, FLORISA SCHEDULE OF SELECTED FINANCI AL RATIOS September 30, i 1989 1988 1987 1986 1985 I Current ratto
- current assets divided by current liablittles Quick ratto - current asseta (T imes ) 2.39 2.00 2.20 2.87 2.58 lose inventories divided by current 11ab111ttee (Times) 1.73 1.43 1.68 2.15 2.04 Current assets divided by total assets (Percent) 7.531- 7.301 8.042 8.342 8.28X I Current liabilities divided by total 11ab111ttes Current 11ab111ttes divided by (Percent) 4.981 5.731 5.74I 4.972 5.402 uttitty equity (Percent) 8.572 10.011 10 161 6.972- 7.881 -
Contributed capital divided by utility equity (Pe rcent) 71.552 70.743 68.592 62.04% 59.811 Total 11ab111 ties divided by uttitty equity (T Lmes) 1.72 1.75 1.77 1.40 1.46 Lons-term debt (not) divided by uttitty equity (Times) 1.44 1.48 1.51 1.20 1.26 Current 11ab111 ties divided by total assets (Pe rcent) 3.153 3.651 3.661 2.901 3.202 Lora-?? m debt (net) divided by total asseta (Percent) 52.973 54.071 54.42% 49.962 51.20X Total liabilities divided by total assets (Pereant) 63.22X 63.58% 63.871 58.35% 59.33X Sales divided by everage accounts receivable (Times) 19.03 20.10 21.12 21.02 19.99 Averste collection period - average billed accounts receivable divided by average daily sales (Days) 18.92 17.91 17.04 17.13 18.01 I 57
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