ML20052H160

Annual Financial Rept for Fiscal Yr Ended 810930.Financial Statements & Rept on Exam of Statements Encl

ML20052H160
Person / Time
Site:	Crystal River
Issue date:	02/01/1982
From:	Aston D KISSIMMEE, FL
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CITY OF KISSIMMEE, FLORIDA ANN UAL FINANCIAL REPORT Fiscal Year Ended September 30,1961 e2052o0012 a20sia PDR I

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~l l ANNUAL FINANCIAL REPORT a ' .. .

- OFTHE j CITY OF KISSIMMEE, FLORIDA l

'FOR THE l FISCAL YEAR ENDED SEPTEMBER 30,1981  !

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by l FINANCE I DEPARTMENT l DAVID V. ASTON flNANCE DettCTOR i

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l' CITY OF KISSIMMEE, FLORIDA COMMISSION-MANAGER FORM OF GOVERNMENT i

CITY COMMISSION GEORGE A. CANT, M.D., M AYOR C. ALLEN SMITH, Vice Mayor KENNETH C. MAHER NAOMI D. WINBUSH BRUCE R. VAN METER CITY MANAGER O. SAM ACKLEY i FINANCE DEPARTMENT DAVID V. ASTON f 6 NANCE DIRECToa JOHN f. HEARN CHilf ACCOUNTANT s

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City of Kissimmee, Florida LISTING OF CITY OFFICIALS i AS OF SEPTEMBER 30,1981 i

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ELECTED OFFICIALS ,

Mayor-Commissioner George A. Gant, M.D.

Commissioner, Vice Mayor C. Allen Smith Commissioner Naomi D. Winbush Commissioner Kenneth C. Maher

. Commissioner Bruce R. Van Meter APPOINTED OFFICIALS Vice City Manager Robert L. Berlinsky City Attorney Edward Brinson Assistant City Manager Robert L. Berlinsky Director of Finance David V. Aston Director of Planning Lewis L. Dismukes Central Services Director Allen L. Rushlow Director of Public Works & Engineering George W. Mann, Jr.

Police Chief Jimmie J. Watford Fire Chief Kenneth L. Kemp Director of Building and Zoning J. Pat Daugherty Parks and Recreation Director William E. Palmer Electric Utility Director Jack T. Danforth Water and Sewer Utilities Director Paul D. Egleston Personnel and Labor Relations Director Kathleen A. Gaylor o

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o CITY OF KISSIMMEE, FLORIDA l

t ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 1981 TABLE OF CONTENTS 1

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. INTRODUCTORY SECTION I

TITLE PAGE . . .

.......... .. . ... . .. . .. . . . i PRINCIPAL CITY OFFICIALS . . . . . . . . . .. .. .. . .. . . . iii - V I

TABLE OF CONTENTS. . . . . . . . . . . . . . . . . . . . . . . . . vii - ix i LETTER OF TRANSMITTAL. . . . . . . . . . . . . . . . . . . . . . . 1 - 12 ORGANIZATIONAL CHARTS. . . . . . . . . . . . . . . . . . .. .. . 14 - 15 CERTIFICATE OF CONFORMANCE . . . . . ... . . . . .. . .. . . . 18 - 19 i

i FINANCIAL SECTION

', AUDITORS' REPORT . ........................ 23 - 25 t

GENERAL PURPOSE FINANCIAL STATDfENTS (COMBINED STATEMENTS - OVERVIEW)

. Combined Balance Sheet - All Fund Types and

' Account Groups . . . .......... . . ... . . . . . . 30 - 33 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund i Types and Expendable Trust Funds . . . . . . . . . . . . . . . 34 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -

General and Special Revenue Funds. . .. . . . .. . .. . . . 35 Combined Statement of Revenues, Expenses and Changes in Retained Earnings / Fund Balances - All Proprietary Fund Types and Similar Trust Funds . . . . . . . . . . . . . . 36 Combined Statement of Changes in Financial Position -

All Proprietary Fund Types and Similar Trust Funds . .. . . . 37 Notes to Financial Statements. . . .... .. . .. . . . . . . 38 - 55 COMBINING STATEMENTS - BY FUND TYPE Governmental Fund Types:

General Fund -

Balance Sheet. . . ...... . ... . .. .. . . . . . . 62 Statement of Changes in Fund Balance . . . . . . . .. . . . ,63 Statement of Revenues and Other l Financing Sources - Budget and Actual. . . . . . . . . . . 64 - 65 ,

Statement Expenditures and Transfers - l Budget and Actual. . . . . . . . . . . . . . . . . . . . . 66 - 67

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Special Revenue Funds -

Combining Balance Sheet. ... . . . . . .. . . . . . .... 70 Combining Statement of Revenues, Expenditures and Changes in Fund Balances . . .. . . . . . . . - .... 71 Statements of Revenues, Expenditures i

, and Changes in Fund Balance - ) l Utility Tax Fund . ... . .. . . . . . . . . . . .... 72 Federal Revenue Sharing Fund . . . . . . . . . . . . . . 73 s Capital Improvement Fund . . . . . . . .... . .... 74 j Vehicle Replacement Fund . . . . . . . . . .. . .... . -- 75 Solid Waste Renewal and Replacement Fund . . . . .... 76 Recreation Impact Fund . . . . . . . . . . . . . .... 77 ';

Debt Service Funds - l Combining lalance Sheet. .................. 80 Combining Statement of Revenues, Expenditures and -

l Changes in Fund Balances . . . . . . . . . . . . . . . . . . 81 )

Capital Projects Funds -

Combining Balance Sheet. ............ . . .... .

84 Combining Statement of Revenues, Expenditures and Changes in Fund Balances . . . . . . . . . . . . . .... 85 l '

Special Assessment Funds -

Contining Balance Sheet. ............ . . .' . . . 88 .

Combining Statement of Revenues, Expenditures and - l Changes in Fund Balances . . . . . . . . . . . . . .... 89 Proprietary Fund Types:

• Enterprise Funds -

Combining Balance Sheet. .. . . . . . . . .. . . .' .... 94 - 95' Combining Statement of Revenues, Expenses and. i Changes in Retained Earnings . . .. . . . . . . . .... 96 I Combining Statement of Changes in Financial Position . ... 97 i

Fiduciary Fund Types: ,

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Trust and Agency Funds -

Combining Balance Sheet - All Trust and Agency Funds . . . 102,' 103  ;

Statement of Revenues, Expenditures and Changes in l Fund Balance - Expendable Trust Fund . . . . . . . .... 104 Combining Statement of Revenues. Expenses and Changes in Fund Balances - All -

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Nonexpendable and Pension Trust Funds. ....

. .... 105 Combining Statement of Changes in Financial Position -

All Nonexpendable. and Pension Trust Funds. . . . . .... 106 ,

Combining Statement of Changes in Assets and ,

i Liabilities - All Agency Funds . . . . . . . . ...j. . . .- .

107

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General Fixed Assets Account Group:

Schedule of General Fixed Assets . . . . . ... . . . .- . . . 110' Schedule of Changes in General Fixed 1 Assets by Function and Activity. . . . . .. .. . . .... 111  !

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. - SCHEDULES

_. Schedulc of Fixed Assets and Depreciation - ,

lg Electric Utility- Fund. . . . . . . . . . . . . . . . . . . . . 115 Schedule of Fixed Assets and Depreciation -

I Water and bewer Fund . . . . . . . . . . . . . . . . . . . . . 116

' l Schedule 6f Fixed Assets and Depreciation -

l Airport Fund . . . . . . . . . . . . . . . . . . . . . . . . . .

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! STATISTICAL SECTION ,

.f ACCOUNTANTS' REPORT. . . . . . . . . . . . . . . . . . . . . . . . 121 .

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STATISTICAL INFORMATION ,

Table 1 - General Fund - Expenditures by Department -

Last Ten Fiscal Years . . . . . . . . . . . . . . . 124 - 125

.I Table 2 - General Fund - Revenues by Source - Last Ten Fiscal Years. . . . . . . . . . . . . . . . . . 126 l

. Table 3 - Property Tax Levies, Tax Collections and Assessed j

. Valuations - Last Ten Fiscal Years. . . . . . . . . 127 j Table 4 - Schedule of Property Tax Rates - All Overlapping  ;

Governments - Last Ten Fiscal Years . . . . . . . . 128 l 1

i Table 5 - Schedule of Special Assessment Collections - l Last Ten Fiscal Years . . . . . . . . . . . . . . . 129 i Table 6 - Computation of Legal Debt Margin. . . . . . . . . . . 130 Table 7 - Computation of Direct and Overlapping Debt. . . . . . 131 (

Table 8 - Ratio of General Bonded Debt to Assessed i Value and Net Bonded Debt per Capita -

{ Last Ten Fiscal Years . . . . . . . . . . . . . . . 132

, Table 9 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General <

Expenditures - Last Ten Fiscal Years. . . . . . . . 133 Table 10 - Schedule of Electric and Water Revenue i Certificate Coverage - Last Ten Fiscal Years. . . . 134 Table 11 - Schedule of Water and Sewer Utility Revenue r 135 Certificate Coverage - Last 10 Fiscal Years . . . .

4- l Table 12 - Schedule of Airport Revenue Bond Coverage -

. Last Eight Fiscal Years . , . . . . . . . . . . . . 136 (;

} Table 13  : Table of Demographic Statistics . . . . . . . . . . . 137 '

Table 14 - Tables of Property Values, Construction i .

and Bank Deposits - Osceola County. . . . . . . . . 138 [

4 Table 15 - Schedule of Major Taxpayers . . . . . . . . . . . . . 139 r i n~ Table 16 - Miscellaneous Statistical Data. . . . . . . . . . . . 140 -

Table 17 - Utility Enterprise Funds Statistical Data . . . . . . 141 i l' Table 18 - Schedule of Insurance in Force . . . . . . . . . . . 142 ,

Background . . . . . . . . . . . . . . . . . . . . . . . . . . . 143 - 145 ,

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LETTER OF TRANSMITTAL 8

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. ofr C D ossics oe tai oinicion or ri~*~cs P o sos iooe kiwiuvir. 'tonio* 3rdi- ios e28:i t O RIO i

February 1, 1982 e

i Mr. O. Sam Ackley, City Manager City of Kissimmee Kissimmee, Florida

Dear Mr. Ackley:

The Comprehensive Annual Financial Report of the City of Kissimmee, Florida, for the fiscal year ended September 30, 1981, is submitted here-with pursuant to Section 5-1-7 of the City Charter, Florida Statutes Chapter 166.241 (4) and Chapter 10.500 of the Rules of the Auditor General of the State of Florida. This Comprehensive Annual Financial Report was prepared by the staff of the Finance Department and, therefore, responsi-bility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City. We believe the data, as presented, is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial position and results of activity of its various funds; and that all disclosures necessary to enable the readers to gain the maximum understanding of the City's financial activity have been included.

As required by Section 5-1-6 of the City Charter and Florida Statutes Chapter 166.241 (4), the Comprehensive Annual Financial Report has been exanined by a firm of independent certified public accountants and their unqualified opinion is included as part of this report, ACCOUNTING SYSTEM AND BUDGETARY CONTROL The City's accounting records for General, Special Revenue, Capital Projects, Debt Service, Special Assessments and certain Trust and Agency Funds are maintained on a modified accrual basis with revenues being recognized when they become measurable and available, while exper.ditures are recorded at the time liabilities are incurred. Accounting records for the Enterprise and certain Trust and Agency Funds are maintained on a full accrual basis. Enterprise Funds are charged for administrative, accounting and data processing services, which are performed by various departments of the General Fund. This is done within the framework of making these funds self-supporting and to provide a comparable basis with other public utilities that are privately owned.

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Mr. O. Sam Ackley, City Manager February 1,1982 Page Two i

In developing and altering the City's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting ,

controls are designed to provide reasonable, but not absolute, assurance regarding:

1. The safeguarding of assets against loss from unauthorized use or disposition; and J

2. The reliability of financial records for preparing financial statements and maintaining accountability for assets. .

The concept of reasonable assurance recognizes that:

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1. The cost of a control should not exceed the benefits likely to be derived; and l

2. The evaluation of costs and benefits requires estimates and judgments by management.

All internal control evaluations occur within the above framework. We believe that the City's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. i i

Budgetary control is maintained at the sub-function level by the encumbrance of estimated purchase amounts prior to the release of purchase l orders to vendors. Purchase orders, which would result in an overrun of .

sub-function balances, are not released until additional appropriations are made available or unless authorized by legislative action. Budgeta ry -.

reports are issued and reviewed monthly as outlined in the City Charter, I Sections 5-1-4 and 5-1-7. Open encumbrances are reported as reservations of fund balance at September 30, 1981.

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THE REPORTING ENTITY AND ITS SERVICES 3 The funds and entities related to the City of Kissimmee, included in our ,

Comprehensive Annual Financial Report, are controlled by or dependent on j the City. Determination of " controlled by or dependent on" is based on criteria developed by the Federal Bureau of the Census. The criteria deal I with existence as an organized entity; governmental character; and i substantial autonomy. Based on these criteria, the various funds and '

account groups shown in the table of contents are included in this report.

The report, together with the accounting and budgeting systems, has been j designed to conform to the standards set forth by the National Council on '

Governmental Accounting, American Institute of Certified Public Accountants and the Financial Accounting Standards Board. Fund structure has also been f designed to comply with the legal requirements of the various revenue bond j resolutions.

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Mr. O. Sam Ackley, City Manager

. February 1, 1982 Page Three i

This report is arranged in the following sections:

i Section I: Introductory Section g Section II: Financial Section

( Part 1: General Purpose Financial Statements Part 2: Combining Statements - By Fund Type Part 3: Supporting Schedules ,

Section III: Statistical Section r

The Financial Section of the report contains combined, combining and  :

balanced account groups which present fairly the financial position and results of operations for the fiscal year. These statements and schedules are divided into three parts:

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1. General Purpose Financial Statements, which display

, financial data for the City as a whole;

2. Combining Statements - By Fund Type, which present data for homogeneous funds; and

3. Supporting Schedules, which present supplementary data not necessary for fair presentation.

The Statistical Section presents detailed historical information which will be beneficial to the reader in understanding the City's growth and its future potential.

The City of Kissimmee provides the full range of municipal services contem-plated by statute or character. This includes police, fire, sanitation, social services, public improvements, planning, zoning, recreational services and general administrative services. In addition, public utilities (electric, water, sewerage and water pollution control) and aviational activities are provided.

On October 1, 1981, the Municipal Finance Officers Association of the United States and Canada (MFOA) awarded a Certificate of Conformance in Financial Reporting to the City of Kissimmee for its Annual Financial Report for the fiscal year ended September 30, 1980. >

In order to be awarded a Certificate of Conformance, a governmental unit must publish an easily readable and efficiently organized comprehensive Annual Financial Report, the contents of which conform to industry standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements.

Mr. O. Sam Ackley, City Manager February 1, 1982 Page Four A Certificate of Conformance is valid for a period of one year only. We believe our current report continues to conform to the Certificate of  ;

Conformance Program requirements and we are submitting it to MFOA to determine its eligibility for another certificate.

GENERAL FUND The General Fund encompasses the general governmental functions of the City '

and all other functions not accounted for in other separate funds.

Revenues and other financing sources from general governmental functions totaled $5,199,890 in 1981, a 1.4% decrease from 1980, mainly due to ,

establishing a capital improvement fund for large nonrecurring capital '

expenditures. Interest previously credited to the General Fund was credited to the Capital Improvement Fund in 1981. This resulted in a ,

decrease of 50.3% in interest earned calculations between 1981 and 1980.

In addition, Federal and State Grant revenue decreased 41.8% between 1981 and 1980 due to the loss of CETA programs. These were partially offset by an increase in the Electric Fund transfer of 9% over the previous year.

Property taxes accounted for 32% of total revenues in 1981, as compared to 31% in 1980. Property taxes, nationally, account for less than 50% of general revenue sources and the percentage has been declining annually. .

I License and permit revenues increased 29.6% over 1980. This increase includes an increase in occupational license fee revenues due to a 100% fee ,

increase on all City business licenses. We anticipate that building permit l activity will be stronger in the coming years due to an aggressive  !

industrial development bureau and a lessening of sewer treatment problems.

Fines and forfeitures increased by 2% over 1980. Along with the growth in I, the area mentioned above, there is an increase in traffic activity. This results in an increase in fines. .

k All other revenue sources show minor changes from the previous years.

Presented below is a comparison of the current fiscal year revenues and  !

other financing sources, as compared to the last fiscal year:

• REVENUE AND OTHER INCREASE  :

FINANCING SOURCES F/Y 1981 F/Y 1980 (DECREASE) % CHANGE l Property taxes $ 1,063,909 $ 1,038,058 $ 25,851 2.5 %  ;

Franchise taxes 85,520 68,436 17,084 25.0 % [

Licenses and permits 203,506 157,025 46,481 29.6 %

t Federal and state grants 82,170 141,276 (59,106) (41.8)%

l State Revenue Sharing 452,145 384,266 67,879 17.7 %  !

l County road and bridge tax 42,048 51,281 (9,233) (18.0)%

Shared taxes and licenses 161,783 152,455 9,328 6.1 %

Garbage and trash fees 262,920 254,658 8,262 3.2 % j Interdepartmental charges 509,868 639,502 (129,634) (20.3)%  :

Fines and forfeitures 68,568 67,228 1,340 2.0 %

}

t Mr. O. Sam Ackley, City Manager February 1,1982 Page Five REVENUE AND OTHER INCREASE

! FINANCING SOURCES - F/Y 1981 F/Y 1980 (DECREASE) % CHANGE i (continued)

( County ambulance service 243,479 183,758 59,721 32.5 %

l- Interest earned 91,444 183,892 (92,448) (50.3)%

Other revenue 69,513 77,192 (7,679) (9.9)%

Fund transfers 1,835,004 1,875,681 (40,677) (2.2)%

Lease proceeds 28,013 - 28,013 100.0 %

TOTALS $ 5.199.890 $ 5.274.708 $ (74.818) (1.4)%

Assessed property valuations of $199,226,059 for F/Y 1981 represent a 37.2%

increase over the $145,188,232 valuations for 1980. This was due to the State of Florida mandating all property assessments be valued at 100%.

i Previous levels varied between 68% and 79%. Current tax collections were 97.3% of the total tax levy.

All functions show increases this fiscal year due to a change in methods t used to charge employee benefits, insurance, salary increases and contingency funds. In previous years, these items were shown in the nondepartmental functions. Fiscal year 1981 saw an effort to allocate i these charges to the proper function; hence, a large decrease in nondepart-mental charges. Overall expenditures increased only 5.2% in 1981 as compared to 1980.

Expenditures for the fiscal year of the various functions within the General Fund, as compared with those of the previous year, are presented as follows:

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INCREASE FUNCTION F/Y 1981 F/Y 1980 (DECREASE) % CRANGE General Government $ 1,253,631 $ 1,007,989 $ 245,642 24.4 %

Public Safety 2,357,342 1,781,899 575,443 32.3 %

Public Works 1,013,637 812,540 201,097 24.7 %

Parks and Recreation 321,399 262,093 59,306 22.6 %

Nondepartmental - 703,259 (703,259) (100.0)%

Fund transfers 1,282,328 212,650 1,069,678 503.0 %

TOTALS S 6.228.337 $ 4.780.430 $ 1.447.907 30.3 %

Comparisons between 1978, 1979, 1980 and 1981 figures may be deceiving in respect to 1979 and 1978. These two (2) years reflect transfers to the I General Fund from the Enterprise Funds. In 1980 and 1981, these transfers are shown in the revenue section.

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Mr. O. Sam Ackley, City Manager February 1, 1982 '

Page Six The following table shows the entire listing of line items of all departments without the departmental limitation. Information provided will ,

reflect how much was spent for the classifications of salaries, utilities, capital outlay, etc. for the entire General Fund.

INCREASE CLASSIFICATION F/Y 1981 F/Y 1980 (DECREASE) % CHANGE Salaries and wages $ 2,954,970 $ 2,633,939 $ 321,031 12.2 % -

Employee benefits 627,098 567,787 59,311 10.4 %

Other contractural 144,855 266,404 (121,549) (45.6)%

Maintenance and repairs 253,961 206,850 47,111 22.8 % ,

Gas, oil and grease 138,817 104,473 34,344 32.9 %  ;

199,352 164,857 34,495 20.9 % -'

Utilities Materials and supplies 276,065 188,250 87,815 46.6 %

Training and travel 22,050 21,914 136 .6 %  !

Insurance 83,266 79,108 4,158 5.3 %

Charges from service organizations 21,671 16,671 5,000 30.0 %

Capital outlay 156,291 270,879 (114,588) (42.3)% ,

Debt service 67,613 46,648 20,965 44.9 %

Transfers 82,328 212,650 (130,322) 61.3 %

i, TOTALS S 5.028.337 S 4.780.430 S 24 M 5.2 %

% OF TOTAL EXPENDITURES INCREASE 3 CLASSIFICATION F/Y 1981 F/Y 1980 (DECREASE)  % CHANGE 1 Salaries and wages 59 % 55 % 60 % 64 %

Employee benefits 12 12 15 16 ,j Other contractural 3 6 6 7 Maintenance and repairs 5 4 5 6 Gas, oil and grease 3 2 2 2 Utilities 4 3 4 4 ,

Materials and supplies 5 4 4 4 Training and travel .5 .5 1 1 Insurance 2 2 - -

Charges from service organizations .5 .5 - -

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Capital outlay 3 6 10 1 1 - - $*

Debt service Other - -

8 8 Less: Allocations - -

(15) (16)  ;

Transfers 2 4 - -

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TOTALS 100.0% 100.0% 100.0% 100.0% ,

Mr. O. Sam Ackley, City Manager February 1, 1982 Page Seven e

i Unreserved fund balance decreased 60% because of a large portion of 1980

fund balance was used to establish the Capital Improvement Fund. However, ,

1981 unreserved fund balance was maintained at an adequate level of 14% of I General Fund expenditures.

ELECTRIC UTILITY FUND Electric Utility Fund operating revenues increased $4,865,218 or 34.3% over

, last year. This increase can be attributed to a combination of increased kilowatt hours (KWH) sold of 13.8%, increase Cost of Power Adjustment (COPA) of $991,595 or 42.7%, a general rate increase of 10% effective November 1, 1980, as well as an increase in resale power of $266,809 or 33.6% over 1980. It should be mentioned that the investment income increased $667,694 or 88.9% over the previous year.

( Operating expenses, on the other hand, increased 30.4% over 1980. This is mainly attributable to an increase in depreciation of 26% over last year because of system additions completed in 1980 and becoming depreciable during 1981, as well as increa-c.d purchased power costs of $2.352,988 or 40% over 1980. This latter statistic has caused the City to look to other sources for power. In December of 1981, a contract was executed for the purchase and construction of a combined-cycle gas turbine electric plant.

i A major bond issue of $47,500,000 is planned for February of 1982 to finance this unit. The tremendous demand on the system has crystalized the concern for conservation measures as evidenced in the recent program of cash rebates for citizens who install energy conservation equipment in their residences.

Comparative data for the last three fiscal years is presented in the t following tabulation

1981 1980 1979 i

Total revenue (recurring) $20,487,748 $14,G4,836 $11,201,912 Net income 2,845,585, 1,167,851 676,226 Income available for debt service 5,716,286 4,178,675 3.131,119 Maximum debt coverage 1,385,657 1,385,657 1,166,853 Debt coverage (income available for debt service divided by maximum future debt service) 4.13 x 3.02 x 2.7 x Cash and investments (unrestricted) 2,529,356 1,056,217 629,676 j-Current ratio 3.6 to 1 2.2 to 1 2.7 to 1 In early fiscal 1981, the City validated $4,815,000 of Electric Revenue Bond Anticipation Notes for the purpose of substation and ,other distribution facilities expansion. These notes carry a rating of MIG-2 from Moody's Investor Service. The remaining $5,800,000 of validated, but unissued 1979 Bonds, will be used to defense these notes in 1983.

Mr. O. Sam Ackley, City Manager February 1,1982 i Page Eight AIRPORT FUND i

Airport operations experienced an increase in revenues of $9,470 or 12.6%

over 1980. Operating expenses showed a decreace of $18,109 or 13.8% over last year. While the operations continued to record a net loss, the loss was $32,251 or 96% less than 1980. The City is actively pursuing a vigorous program of leasing terminal space, industrial sites and hangars ,

through the Airport Advisory Board, Airport Manager and Industrial Development Director. We have begun work on preparation of a master development plan for the airport property that will, hopefully, begin to ,

show results in increased revenues within the next year.

Comparative data for the last three fiscal years is presented in the "

following tabulation:

1981 1980 1979 l Total operating revenue $ 84,569 $ 75,099 $ 70,792 Net loss (1,353) (33,604) (58,654)

Income available for debt service 44,821 62,833 33,422 Maximum future debt service 33,450 35,300 35,300 Debt coverage (income available I

for debt service divided by .

maximum future debt service) 1.34 x 1.80 x .9 x Cash and investments (unrestricted) -

(deficit) $ 53,206 $ (23,102) $ (34,297) l Current ratio 6.61 to 1 Negative Negative  !

I WATER AND SEWER FUND $

Gross operating revenues decreased $43,804 or 2.7% over last year due to a reduction of interdepartmental sales of $169,239 or 82% compared to 1980. {

During the year, the Electric Plant activated their own well facility which meant that purchases from the treatment plants were no longer necessary.

The increase in other customers of 8.7% did not offset this reduction.

l Operating expenses, meanwhile, increased $93,774 or 7.9% over fiscal year 1980 due to utilities cost increases of $50,840 or 30.3% and increased s personnel costs of $53,297 or 15.9%. Due to federal budgetary reductions, ]

the City's 201 Program has been ignored for the present time. In order to place the City in a more favorable position for future growth, $2,600,000 in Water and Sewer Revenue Bonds have been issued early in fiscal 1982 for l' the purpose of constructing an interim sewerage treatment facility. These bonds carry a AAA rating from Standard and Poor's as does the 1977 issue. '

It is anticipated that the new treatment facility will alleviate problems at our present aging plant as well as provide capacity for future I customers.

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Mr. 'O. Sam Ackley, City Manager '

February 1, 1982 Page Nine Comparative data for the last three fiscal years is illustrated in the following table:

1981 1980 1979 h Total revenue (recurring) $ 2,244,417 $ 2,062,970 $ 1,779,521 Net income 647,144 560,081 495,816 Income available for debt service 914,242 1,004,186 936,733 Maximum future debt service 372,448 372,448 372,448 Debt coverage (income available for debt service divided by

, maximum future debt service) 2.5 x 2.7 x 2.5 x Cash and investments (unrestricted) 2,332,909 1,758,136 1,002,167 Current ratio 66.6 to 1 45.2 to 1 59.6 to 1

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! SPECIAL REVENUE FUNDS I

Special Revenue Funds account for revenue from specific revenue sources l which are legally restricted for specified purposes. Utility taxes are pledged primarily for the various obligations of the water and sewer

utility systems. Federal Revenue Sharing funds are obligated to fund those specific items so designated in the City's annual budget. Recreation impact fees are designated for recreational improvements throughout the City and are levied on each new living unit. The Solid Waste Renewal and Replacement Fund was established to provide monies for capital improvements in the Sa

21tation Department. The Vehicle Replacement Fund was established to provide a system of vehicle fleet replacement.

A comparison of revenues for the last three fiscal years is presented in

, the following table:

1981 1980 1979 Utility tax $ 596,158 $ 530,579 $ 466,775 Federal Revenue Sharing 231,364 230,110 221,478 Recreation impact fees 14,337 6,545 -

i Solid waste renewal and replacement 27,955 25,971 3,863 Vehicle replacement 3,382 - -

Capital improvements 1,381,078 - -

TOTALS S 2.254.274 $ 793.205 S 692.116

_ _ _ _ _ . . _. . ._._.-_w__. . , , . , _ . _ . . _ _ . _

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Mr. O. Sam Ackley, City Manager February 1, 1982 Page Ten I

e CASH MANAGEMENT I

On August 1, 1980, the City entered into a two-year depository contract i with a local banking institution af ter having competitively bid its banking services. This contract guarantees that all funds deposited in the City's account above $75,000 will earn interest at the same Fed Funds rate that the banking institution receives. The City uses a pooled cash concept for i all funds under its control. The cash management program involves a theory of keeping principal and earnings free from risk, maintaining reasonable -

liquidity to meet obligations and maximizing return through the use of a competitive rate comparison from various investment sources. The City invested in those instruments collateralized as required by the State of  :

Florida, j A summary of interest earned on the City's investment is shown in the following table:  !

INTEREST AVERAGE RATE FISCAL YEAR EARNED

• OF RETURN

• 1981 $ 2,362,373 14.8%

1980 1.070,483 8.8% i 1979 858,995 9.3%

1978 970,587 8.4%

1977 397,005 5.0%

• Does not include Pension Fund, which is administered I by an investment firm.  !

TRUST AND Ju'ENCY FUNDS Trust and Agency Funds are nonbudgetary funds established to account for assets held by the City as trustee for individuals, private organizations and other governmental units and/or funds. ,

A fund has been created for the Section 8 Housing Assistance Payments .

Program. The City acts as a conduit for the Federal Government in ],

disbursement of the monies. The program has regulations governing the type of disbursements to be made and providing for periodic independent audits. ,

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A fund was also created to account for revenues received from the supple-mentary care program at the municipal cemetery. This program is designed <

to accept advance payments from cemetery customers for the maintenance of cemetery plots. During 1981, revenues totaled $3,140. J i

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i Mr. O. Sam Ackley, City Manager February 1. 1982 Page Eleven DEBT ADMINISTRATION f Overlapping debt is that portion of the total Osceola County general obligation debt allocated to Kissimmee's residents for purposes of

( ascertaining the total debt each resident is responsible for paying. At September 30, 1981, total overlapping debt allocatable to the City was

{

$731,000 or $41.07 per resident. It should be noted that the City has no general obligation indebtedness of its own.

Bond ratings for the four revenue bond issues are as follows:

MOODY'S STANDARD & POOR'S

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Electric Revenue Bond Anticipation Notes, 1981 MIG-2 -

l Electric Revenue Bonds 1979-1 A AAA Electric Revenue Bonds 1977 A AAA Water and Sewer Revenue Bouds 1977 A AAA i

t In June of 1980, the City sold a $265,000 bond to FmHA for the purpose of constructing a fire station to service the eastern portion of Kissimmee.

( Principal and interest are payable annually on September 1, 1981 through

( 2021 at the rate of 5%.

In addition, the City has entered into a loan agreement for City Hall l expansion with FmHA, totaling $500,000, in January of fiscal 1981. The terms are similar to the above-mentioned loan on the fire station.

i SPECIAL ASSESSMENTS FUND The Special Assessments Fund accounts for assessments levied to finance i public improvements, specifically benefiting the properties against which the assessments are levied.

There has been little activity in the fund this year, aside from annual repayments from the Forrest and Lavon Projects for 1976, the Nebraska l Street Project for 1978 and the Ocean Street Project for 1980.

During the 1981 fiscal year, the City began and completed the paving and installation of storm drainage facilities on Person Avenue and Verona l Street. These proj ects continue the City's orderly program of street paving commenced in the past few years. Payments for these projects will be received during the next year.

CAPITAL PROJECTS FUNDS The City's various capital projects programs are concentrated on two areas, namely, downtown beautification and the City Hall expansion.

,. -_ , ._ ,m. . - . . . - _ . . , . . - _ _ . , - , . - , _ _ _ . _ -___ _ _._--. --

2 i Mr. O. Sam Ackley, City Manager February 1, 1982  ;

Page Twelve The beautification of Kissimmee's downtown commenced in 1978 through the

creation of a special district governed by a board appointed by the City 3

Commission. Although the Commission appoints the board, the disbursement -[

of funds is controlled by the appointed ' Downtown Development Board. -'

Revenues from a special tax are used to fund the issuance of bonds which,

, in turn, fund various beautification projects.

The City Hall expansion program is designed to increase the workable area i by approximately 15,000 sq. ft. It will enable all City departments to be -

located in the same building for the first time in recent history and will  ;

eliminate the need for rental of office space. The project will be financed through a FmHA loan of $500,000 at 5% for 40 years, as well as ,

budgeted funds of $250,000 in the 1981 budget year. l

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GENERAL FIXED ASSETS j The general fixed assets of the City of Kissinunee are those fixed assets

.! used in the performance of general governmental functions and exclude the fixed assets of the Proprietary Funds. As of September 30, 1981, the general fixed assets of the City totaled $3,422,537. This amount represents the original cost of the assets and is, therefore, considerably

,. less than their present value. Depreciation of general fixed assets is not  !

recognized in the City's accounting system.

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). ACKNOWLEDGEMENTS }

The preparation of this report, on a timely basis, could not be ,

3 accomplished without the efficient and dedicated services of the entire I, staff of the Finance Department. I wish to express my appreciation to all members of the department who assisted and contributed to its preparation. ,

j A special note of thanks is due to John Hearn, Chief Accountant, who worked {

l diligently in the preparation of the financial statements.

1 would also like to thank you for your interest and support in planning .

and conducting the financial operations of this City in a progressive and I. responsible manner.

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Respectfully submitted, d

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David V. Aston, Finance Director  ;

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E CITY MANAGER ORGANIZATION FINANCE CHART DEPARTMENT FINANCE DIRECTOR CHIEF FISCAL OFFICER FINANCIAL PLANNING BUDGET ADMINISTRATION DEBT ADMINISTRATION RETIREMENT ADMIN.

l DATA PROCESSING ACCOUNTING I I UTILITY BILLING GENERAL ACCOUNTING PAYROLL PROCESSING PAYROLL GENERAL ACCOUNTING ACCOUNTS PAYABLE

& BUDGET PROCESSING PROPERTY CONTROL PROPERTY CONTROL GRANTS ACCOUNTING PROCESSING STORES INVENTORY PROCESSING

TFIS PEOPLH OF TFIG CITY OF

. CITY iCissiMMEu OF OR GANIZATION KISSIMMEE CHART FLORIDA CITY l

COMMlBBION I

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,i CITY CITY I

MANAGER ATTORNEY l

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CENTRAL COMMUNITY ELECTRIC UTILITIEU FINANCH FIRE INSPECTION SERVICES DEVELOPMENT PARICO PUOLIC WORl(B WATER R POLICE I U R E CR E ATION UTI ITY

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! CERTIFICATE OF CONFORMANCE i

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I "The Municipal Finance Officers Association of the United States and Canada (MFOA) awarded a Certificate of Conformance in Financial Reporting to the City of Kissimmee for our Annual Financial Report for the fiscal year ended September 30, 1980.

In order to be awarded a Certificate of Conformance, a governmental unit must publish an easily readable and efficiently organized comprehensive Annual Financial Report, whose contents conform to industry standards. Such reports must satisfy both generally accepted accounting principles and applicable legal ,

requirements. _j A Certificate of Conformance is valid for a period of one year  ;

only. We believe our current report continues to conform to f Certificate of Conformance program requirements, and we are submitting it to MFOA to determine its eligibility for another certificate." 'I

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0 18.- ,

I Cerr. .icate f

I O::

t Conformance .

. in Financia.

t Reporting Presented to

( City of i.

Kissimmee, F oric a

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Forits Comprehensive Annual

, Financial Report for the FiscalYear Ended

, September 30,1980 A Certificate of Conformance in Financial Reporting is l presented by the Municipal Finance Officers Association  !

! of the United States and Canada to govemmental units

( and public employee retirement systems whose comprehensive i annual financfal reports (CAFR's) are judged to substantially conform to program standards.

1 Q ffAS if:n, =,

Yh Executive Director 19.

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FINANCIAL SECTION This Section Contains the Following Subsections:

AUDITOR'S REPORT GENERAL PURPOSE FINANCIAL STATEMENTS COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES SCHEDULES t

- - - _ _ - _ _ _ _ _ - _ _ - - - _ _ _ _ _ _ _ . . . _ . . , _ _ _ _ _ _ - _ . _ _ . . _ _ _ , _ _ _ . . - _ _ _ _ _ _ . . _ _ _ . . _ _ _ _ _ _ , y

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j- MayZiman Cemfwd Pubbc Accountants I To the Honorable Mayor, City b Commissioners and City Manager City of Kissimmee, Florida AUDIT 0k3' REPORT l

We have examined the combined financial statements of the City of Kissimmee, Florida and the combining, individual fund, and account group financial statements of the City as of and for the year ended September 30, 1981, as listed in the table of contents. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing  !

procedures as we considered necessary in the circumstances.

l In our opinion, the combined financial statements referred to above present fairly the financial position of the City of Kissicree, Florida at ,

j September 30, 1981, and the results of its operations and the changes in l l l financial position of its proprietary fund types for the year then ended, in conformity with generally accepted accounting principles which, except for the change, with which we concur, in the method of accounting for special assessment levies, as described in Note 13 of the financial state-ments, have been applied on a basis consistent with that of the preceding year. Also, in our opinion, the combining, individual fund, and account l group financial statements referred to above present fairly the financial i'

position of the individual funds and account groups of the City of

( Kissic:mee, Florida, at September 30, 1981, and the results of operations of such funds and the changes in financial position of individual proprietary funds for the year then ended, in conformity with generally accepted

, accounting principles which, except for the change, with which we concur, in the method of accounting for special assessment levies, as described in Note 13 of the financial statements, have been applied on a ' basis

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consistent with that of the preceding year.

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Our examination w2c mad 2 for tha purposa of forming en opinion on tha combined financial statements taken as a whole and on the combining, individual fund, and account group financial statements. The accomptnying I financial information listed as supporting schedules in the table of g

contents is presented for purposes of additional analysis and is not a required part of the combined financial statements..of the City of Kissimmee, Florida. The information has been subjected to the auditing procedures applied in the examination of the ' combined, combining, individual fund, and account group financial statements and; in our

, opinion, is fairly stated in all material respects in relation to the i combined financial statements taken as a whole. s

{ In connection with our examination, we also (1) made a study and evaluation

(

of the City's system of internal accounting control, (2) performed tests of compliance with the Revenue Sharing regulations as required .by Sections II.C.3. of the Audit Guide and Standards for Revenue Sharing' and Antirecession Fiscal Assistance Fund Recipients (Guide) issued by the ,,

Office of Revenue Sharing, U. S. Department of the Tre'asury, and (3) compared the data on Bureau of Census Form RS-8 to the records of the City of Kissimmee, Florida, for the year ended September 30, 19,78,,as required by Section II.C.4. of the " Guide."

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Based on these procedures, we noted no instance of noncompliance with . the regulations and no material differences between census data on Form RS-8 and the records of the City of dissimmee, Florida. -

Tampa, Florida '

November 11, 1981

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GENERAL PURPOSE

[ ,

FINANCIAL STATEMENTS b '

'4- -(Combined Statements-Overview)

] ,

These basic financial statements provide a summary overview of

[ the financial position of all funds and account groups as well as the operating results of all funds. They also serve as an introduc-tion to the more detailed statements and schedules that follow in

[ the next Subsection.

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CITY OF KIS$1:2 TEE. FLCEIDA CCMSINED BAIANCE 3HEET ALL TWD TYPES AND ACC0t NT CROUPS SEPTIM3tp 30. 1981 CotERNMENTAL Ftr *TP!S ,

$PECIAL DElf CAPITAL CENERAL RE7c:UE SERVICE PROJECTS A5itTS Equity in pooled cash and investments 5 641.470 5 1.117.869 5 29.725 $ 231.573 Receivables - (net of allowances for uncollectibles):

r Accreed interest 2.600 - 50 -

Accounts - - - -

Taxes 2.402 - - -

!;ecial assessments - - - -

ue f ecs other sovern=ents 82.293 56.251 - -

Due f eco other f unds 106.679 - - -

Inventories - at cost 63.797 - - -

? repaid expensee 3.500 - - -

Advance to other funds 2.000 - - - ,

Restricted assets: l Sicaing funds - cash and investments - - - -

Construction funds - cash and Lnvestments - - - -

3end asset replacement funds = cash and investments - - - -

[ Cast: ers' deposits - cash and investments - - - -

! Pension funds - cash and investments - - - -

Land (Note 2) - - - -

Suildings (Note 2) - - - -

l Iquipment (Note 2) - - - -

l  != pro-ezents other than buildings (Note 2) - - - -

Flant and equipment - not Clote 2) - - - -

Construction in prsgress (Note 2) - - . -

l 1xtentory - nuclear fuel - (cet) - - - -

3ond issue costs - (net) - - - -

Airport Master Plan - (net) - - - -

• and held for future use

, Accunt available for debt service in the

( Debt Seritce Tund - - - -

, Amount to be provided for debt se rvice - - - -

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'O*AL ASSETS 3 004.?41 9 1.i?L.!?9 $ 18 *?s 5 201.3*3 l

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, see accompanying notes to financial statesenta.

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PACE 1 0F 2 FRCPRIETARY FIDLCIART FUND TYPES Ft'ND TYPES ACCOUNT CR0t?PS t GENERAL TOTA 1.3 SPECIAL ENTERPRISE TRUST AND CDERAL 1,0NC-TERM (MDIORANOUM Ohu)

ASSESSMENTS (Note 9) 4CENCY FTIED ASSETS DEST 1981 1980 3 $ 223.033 $ 4.915.471 8 100.315 3 - $ -

S 7.238.456 5 4.837.238 l

6.134 20.922 77.535 - -

107.241 339.409

~

1.936.722 - - -

1.936.722 1.810.355

~ - - - -

2.402 4.049 198.890 - - - -

198.890 146.522 20.245 - -

158.789 212.251 106.679 d6.971 901.638 - - -

(*3.435 937.300 j -

38.803 3.062 - -

45.365 54.609 2.000 2.000 I -

3.983.469 - - -

3.983.469 4.231.386 4

6.100.088 - - -

6.100.088 1.694.992 l - 1.625.000 - - -

1.625.000 1.158.887 698.589 - - -

698.589 660.233 3.647.027 - -

3.647.027 2.926.650 359.700 -

359.700 359.700

- - - 875.935 - 875,935 361.498 1.310.917 -

1.810.917 1.534.611 320.770 -

320.770 241.978 27.842.535 - - -

27.842.535 26.S!3,665 j -

1.018.080 -

55.215 -

1.073.295 829.301 525.532 - - -

525.532 396.387 983.153 - - -

983.153 923.295 i - 40.632 - - -

40.632 43.022 609.740 - - -

609.740 609.740 38.775 38.775 26.943-554.796 554.795 586,994 5 423.057 1 31.240.374 3 3.848.ta4 _ _ _

$ 3.4??.5j; s $93.??1 j,jl,)gj,jji s 52.370.t06 4

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C!n CF KI$$I.T.EE. TLORICA CCMSINED BAIANCE $HEET ALL F5D TTPES ED ACCCCNT GROUPS

$2P*!M3Et 30, 1981 C07R.WENTAL FUND *YPES

$PECIAL DEST CAPITAL CEN!RAL REVINCE SER7tCE PROJECTS LI ABILITIES AND FD*D EQUITT l

LIAstLITIES Accounts payable $ 31,179 $ - $ - 3 50 Accrued liabilities 173.402 - - -

Deposits psyable - - - -

Oue to other funds -

49.498 - -

Aovance frem other funds - - - -

Contracts payable - rotatned percentage Restricted asset liabilities:

Accounts payable - - - -

Accrued service deposit interest -

Retainages payaole - - - -

Castener deposits Revenue bonds payable - current - - - +

Accrued revenue bond Laterest - - - -

3evenue bonds payable - (net) (Notes i. 5 4 8) - - - -

General obligation bonds payable (Notes 6. 7 6 S) - - - -

Oef erred revenue 2.402 - - -

Cbligations under capital leases (Nota 11G) - - - -

Oue to other governments 7,984 - - -

• CTAL LIABILITIES $ 214,967 3 49,498 $ - $ 50 CONTINCENCIES A20 00 stTM NTS (Note 11)

FtMD TCUITT investnent in geceral fLxed assets $ - $ - $ - S -

Contributed capital:

Contribution by governments Contribution by private sources Contribution by other funds - - - -

Retained earnings:

i Reserved for revenue bond retirement - - - -

l Reserved for bond asset replacement - - - -

1 Unre se rved Tuna balances:

Rese rved for encumbrances 115.844 - - -

Reserved for advances to other funds 2.000 - - -

I Reserved for e=ployees' retirement systesa - - - -

Unrese rved -

Designated for debt se rvice - -

38.775 -

Casignated for specific capital projects - - -

201.523 "ndesignated 571,930 1,124,622 - -

l TOTAL TUND EQUITT 5 689,774 $ 1,124,622 5 38,'*5 5 201,523 i

• C"AL LIABILITIES AND TUND EQUITT $ 904.'41 $ 1.1*4.i?S S Se.**5 S 201.!*?

see accempanytag cotes to financial statements.

32.

. _ _ _,_ _ - _ _ __m__ . . . _ _,

e PACE 2 OT 2 PROPRIETARY FIDUCIARY Ft,ND TYPES In'D TYPE $ ACC0t'iT CRCt.PS GENERAL TOTALS SPECIAL ENTERPRISE TROST AND GENERAL LCNG-TERM OttCRANOLM ONLY)

ASSESSMENTS (Note 9) ACENCY FIXED ASSETS DEBT 1981 1980

$ 60.285 $ 1.010.462 $ 1.814 $ - $ - $ 1.103.790 $ 1,545,146

- 222,820 23.148 - - 419,370 315.417 316.304 - - -

316.304 206.652 57.181 - - 106,679 86.971 2.000 - -

2.000 2.000 39.768 57.229 - - -

57.229 -

r 10,372 - - -

10.372 9.635 159.065 - - -

139.065 45.309 708.444 - - - 708,444 6-0.562 10.000 - - -

10.000 35.000

- 5,824 - - -

5.824 763.703 31.193.673 - - -

31.193.673 26.414,874 410.000 410.000 420,000 ,

164,327 2.933 - - -

]

169.662 4.294  !

183.571 183.571 193.937

- - - - - 7,984 -

$ 224,612 $ 33.697.126 5 84,143 S - S 593,571 $ 14.863.967 $ 30,723,268 i

2 S -

3 -

$ - $ 3.422,537 3 -

3 3.422.537 $ 3.013.363 854.663 - - -

854.663 845,828 4 - 1,789.062 - - -

1.789.062 1.057.401 745.002 - - -

745.002 745,002 7

1.791.555 - - -

1.791.555 1.791.555

- 1,625.000 - - -

1.625.000 1.158.887 10.737.96's - - -

10.737.966 7.712,703 115.844 17.734 2.000 2.000 4 - -

3.724.562 - -

3.724.562 2.986.661 a

38.775 26,943 201.523 99.321 203,445 - 39,479 - - 1,939,476 2,190,040 1 203,145 $ 17,543,248 $ 3,764,041 S 1,422,537 $ - 3 26,987,965 S 21,647,439

! 9 429.05* $ !!.240.374 3 3.948.194 3 3.4??.3'7 5 593.571 1 61.!!i.932 $ !?.??0.*04 i

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L.s Es1T ur k lSSitetEE. al.uttIDA V.

OsHelht3B STAltfitNT OF WLVLNULS. LXPLNDITURES ANit I' LLANOS IN HIND BAl.ANCES - BUtaCtf AND ACTUAL.

LLNt.RAL AND SPLCI Al. ELVtJeUE kHNDS FON Tile f tAk LNDLD SkPTtJenER 30, 1988 ,

TOTAL.5 CtNLN Al. SPKI AL BLVENUE (MtJ00RAleDUM UIsl.Y) I VARIA90CE VARIAIICE V Alt l AteCE BulCET IAvokABl.E bul>CET FAVokA41L BUDCET tAVONAtl.E a (htVISED) ACTUAL. (UNFAVOKAhLE) (BEVIStD) ACTUAL. (UNF AVOtt Atl E) (ktVISED) ACTUAI. (DNFAWollA tl E) p kV t Nt!L$

Tases $ l.251.350 $ l.149.429 $ (101.924) $ 627.500 $ 584.255 $ (43.245) $ l.s7s.550 $ l.733.684 $ (145.166) i I' I.lt.u es and poimita 139.750 203.506 63.756 - - -

139.750. 203.506 63.756 '

Intergowsinmuutal sevenues 9 %.520 981.625 45.805 250.000 224.995 (25.002) 1.186.520 1.206.623 20.103 Cl*d8 3ea f or servi 6es 714.344 811.859 36.815 - - -

774.344 811.159  %.815 Finns and forfeitures 53.500 68. % 8 15.068 - - -

$3.500 68. % 8 15.068 Mincsilansuum revenswe 174.440 122,554 (51,554) 127,429 217,067 59,638 101.869 339.651 37,7s4 TUTAl. kEVLMUL5 $ 1,329.904 $ 3.3%,871 $ 6,969 $ I,004,929 $ I,026.120 $ 21,191 $ 4,134,831 $ 4,% 3,193 $ 28, % o FIPtNDITUWE5 cruesal Covernment $ l.215.926 $ l.2S3.63l $ (34.705) $ -

$ 26.070 $ (26.070) $ l.218.926 $ l.279.701 $ (60,775)

Pul,lic Sal ity 2.422.761 2.357,342 65.419 - - -

2.422.761 2.357.342 65.489 Ful,Ile Woake 1.128,131 I.01).637 107.496 - - -

1.128.113 1.083.637 107.496 ranks and becseatlou 341.333 321.399 19.934 - - -

148.333 321.399 19.934 belos scevice - - -

43.500 33.502 9.998 43.500 33.502 9.998 Capital outlay - - - si6,929 258,154 55s,818 886.929 258,111 558 sla total ExttNolTumEs s 5,804.151 5 4,946,0o9 $ 158,144 L e60,429 $ 147,6s3 $ 542,746 $ 5,%4,582 $ 5.263.692 $ 700,890 EnCLss of mEVtNuts oVLu (Usepts) EIlLNDITDkt.S $ (1,774.249)$ ( 4,609,8 %)$ 165,ll) $ 144.500j 70s,637 $  % 4,137 $ (1,629749)$ (900,499)$ 729,250 0180th FINANClilG SOUNCLS TttSES)

~7 o ameing transfers in $ l.535.000 $ l.835.004 $ 4 $ l.223.182 $ l.227.954 $ 4.572 $ 3.058.182 $ 3.062.958 $ 4.516 operating tranuless out (1.278.485) (1.282.325) (3.843) (l.188.182) (1,085.004) 103.378 (2.666.567) (2 % 7.332) 299.535 lsucceJ. from Icame financing -

2E:01) 8 28,083 -

28.013 2N,083 TOTAL. UTittk DINA00CING houkCL5 (USLS) [ 5%,M $ 580,689 $ 24,174 $ (165,tNM)) $ 142,950 $ 307,950 $ 191,515 $ 723,619 $ 132,124 EXCESS OF NEVileUES AND O'Illik Soul:CEs OVER (UleDEN)

EXPLisDITuliLS Aleu OTHLK Usts ,

4 g .217.734)$ (1.028.447)$ 189.287 $ (20.500)$ e58.5s7 $ a72.087 $ (l.238.234)$ (176.860)$ l.061.374 tDND BAl ABICES AT SFCINIllteC OF YEAR 1,785.224 1 ,735 ,221 ___ - 273,n35 273,035 -

g ,991. 2 % 1,998.256 -

FlWD BAl.ANCES AT FND OF YtAR $. $s)Q,g $ _ (,Ny,7 /g } , ,, jl?.?fl I_ _2)2,M) $.1. m ,622 3. 812,961 3 _ _7H.022 L LBMM $ _ W M Sre . e mgs.eny ing se**I ca, tu Ilnan. IaI at at ement n.

. _m _ _ _ _ . . _ m__ . _ . . _ _ . _ . _ . _ _ ..

CITY OF EISSitt9tE. FloulDA Cit 1BINED STAf tHENT OF NEVtNUES LIPLNDITURES AND OtANCt.S IN IVND BAl.ANCLS All COVFRNMENTAl. IUND TYPES AND LXPt.NDABI E TkUST FUNDS It>R THE TMR DIDFD SD FTtNSDN 30 1988 FIDUCIARY COVPRNMENTAL FUND TYPES DVND TYPES TOTALS SPECIA.. DLai CAPITAt. SPECIAL ~ LX PDeDA81.E (MtJ40RANDUM ONI.T) ,

Ct.86t R Al. htVENUL SERVICE Pk0lECTS ASSESSNDNTS TRUSTS 1981 1980 '

-WLVtNUE5 Tasem $ l.149.429 $ 584.255 $ 17.707 $ -

5 8.751.391 $ l.638.360 1lctnece and penetto 203.506 - - - - -

203.506 157.025 Interguvertucatal revenues 9til .625 224.998 - - -

386.938 1.523.561 1.380.006 t.l.a r ge s for services 818.159 - - - - -

811.159 930.812 Finwu and forfeitutes 68.568 - - - - -

68.568 67.228 Niu eII neous sevenue 122.586 217.067 5.244 5.180 23.187 -

373.264 292.887 Special asmensments - - - - 45,769 - 45,769 112.017 i

TOTAL REVENUES $ 3,336,873 $ l.026.320 $ 22,951 J, 5,880 $ 68.956 $ 316,938 $ 4.777.218 $ 4.578,315 tXPtNDITtikES t>rrent Ceneral Covernment $ l.253.631 $ 26.070 $ -

$ 9.244 $ -

$ l.288.945 $ l.007.989 Pul.lle Safety 2.357.342 - - -

4.585 -

2.361.927 1.781.899 PulIlc Work. 1.013.637 - - - - -

1.013.637 812.540 Parks and Recreation 321.399 - - - - -

321.399 262.093 Nondepastwental - - - - - - -

703.259 Welfare - - - - -

307.807 307.807 260.461 Del,t Se vice -

33.502 33.100 - - -

66.602 28.3%

Capital outlay - 258,118 - Ill 419 166.494 -

336.024 538.960 TarrAl. LXPLNDITURES $ 4,946,009 $ 317,683 $ 33,100 $ 111.419 $ 180.323 $ 307.807 $ 5.896.341 $ 5.388.557 EXCESS OF REVtNUES OVER (UNDEN)

EXPENDITURES $ (1,609.836) $ 708.637 $ (10,149) $ (106,239) $ (111.367) $ 9.138 $ (1.119.123) $ (810.222)

HTHik FINANCING SOHWCES (USES)

Proceeds f rom bonds $ -

$ 265.000 operating transferm in 1.855.004 1.227.954 21.988 250.000 205.000 $ -

3.539.939 $ 2.090.651 Operating traumferm out (1.282.328) (1,085.004) -

(5.180) - -

(2.372.512) (1.028.406)

Pouceeds trom lemme fluancing 28,083 - - - - - 28,013 -

TOTAL OTHER FINANCING SOUNCES (USES) $ 580g $ 142.950 $ 21.981 $ 244.820 } 205,000 $ -

$ l.195.440 $ l.-127,2.45 FXCESS OF ktVENUES AND OTHER SOUNCES CVEN (ItNDEN) EXPtNDITURES AND OTHLk USES BEFOkE CUHULATIVK EtttCT OF AN ACCOUNTING CilANGE $ (1,028.447) $ 851.587 $ 11.832 $ 138.581 $ 93.633 $ 9.131 $ lb.317 $ 517.023 Cl!HUI.ATIVE LFFFCT OF AN ACCHUNTING CHANGE (Note 13) - - - - (187,877) -

(117.877) -

EXCESS OF HEVENykS AND OTilER SOUNCLS OVEM (UNDEN) EXPtNDIlukES AND OTilER USES $ (1,028.447) $ 858.587 $ 11.832 $ 138.581 $ (24.244) $ 9.131 $ (41.560) $ 517.023 FUND tlAI ANCES AT BFCINNING OF TEAR 1,718.221 273,035 26.943 62,942 227,689 12.451 2.321.281 1.804.258 to rHED MAIANCES AT INH OF TFAN $_ _ 607.lli $ _.l.I24.622 $____ 3!l ll) $__.20].$)) $.. 203.64) $___. 21.562 L 2.279.721 $__ 2.)][.75[

to e

See accompanying notes to financial utstements.

CITY OF KISSI.P.EE FLORIDA COMBINED STATDtENT OF REVENUES. EXPENSES AND 1

CHANGES IN RETAINED EARNINGS /T' ND 3ALANCES l ALL PRCPRIETARY TUND TYPES AND SIM11AR TRUST FUNDS FOR TiiE YEAR ENDED SEPTDtBER 30, 1981 PROPRIETARY TILUCLARY l FUND TTPES TUND TYPES NON- PENSION TOTALS ENTERPRISE EXPENDASLE. TRUST (MDIORANDUM CNLY)

-(Note 9) TRUST (Note 10) 1981 1980

.CPERATING s!71NUES Charges for services $ 20.705.571 $ 1.115 $ -

$ 20.706.686 $ 15.886.162.

Revenue earned on investments -

2.025 437.385 439.410 315.147 455,405 455,405 520,103 )

Contributions - -

l ICIAL 0?ERATING REVENUES S 20,705,571 S 1,140 $ 892,790 $ 21,601,501 S 16,721,412 OPERAT!NC EXPENSES Cperations $ 15.318.155 $ - $ - $ 15.318.155 $ 11.890.496 .

Oepreciation (Note 14) 1.083.287 - -

1.083.287 933.716 3enefit payments - - 84.485 84.485 98.126 Refunds of contributions - -

17.252 17.252 -

53,152 53,152 39,195 Miscellaneous costs - -

TOTAL CPERATING EXPENSES S 16,401,442 5 - S 154,889 $ 16,556,331 5 12,961,533 OPERATING INCOMI S 4,304,129 $ 3,140 $ 737,901 S' 5.045,170 $ 3,759,879 XCN0PERA!!NC RIV!NUES (EXPENSES)

nterest revenue $ 2.025.227 1 -

$ 2.015.227 5 1.118.468 Interest /acortization expense (1.77*.617) - -

(1.771.617) (1.517.650) 101,045 101.065 105,290 Tap fees - -

TCTAL NONOPERATING P.EVENCES (KIPENSES) S 354,675 $ - S - S 354,615 S (293.902) l S 5,399,845 5 3,465,977 INCOME SETCRE CPERATING TRANSTERS S 4,658,804 S 3,140 S 737,90.

CF!3AT!NC TRANST!35

( cperactna transfers in 3 32.572 3 - $ - S 32.572 $ 37.755 l Operating transfers out (1,200,000) - - (1,200,000) (1,100,000)

TCTAL OPERATING !RANSFIRS S (1,167,429) S - 5 - S (1,167,428) $ (1,062,245)~

NET INCCME a 2.491.376 3 3.140 $ 737.901 S 4.232.417 3 2.403.732

%!!A!NED !.GNINCS/T'3D 3ALANCIS A! SiO;:,N hG OF Y EAA 10,663.145, 14,757 2,986,661 13.564,563 11,260,531

)!TAINED TARNINGSIFUND BALANCIS A; END O F : EAR S 14.154.!?1 S 17.197 5 3.??4.562 S 17.996.980 $ 13 A44.!6?

! See accompanving notes to financial statements.

I .

t 36.

i

CITY 07 KISSI. TIE. FLORIDA COMBINED STATDCT OF CHANGES IN FINANCIAL POSITION ALL PROPRIETART FL*ND TYPES AND SIMILAR TRUST TL*NDS TCR *ME YEAR ENDED SEPT E3ER 30, 1981 PROPRIETARY FIDUCIARY FL'ND TYPE' TL'ND *TPES NON- PENSION TOTALS ENTERPRISE EXPENDABLE TRUST (MDiORANDUM ONLT)

(Note 9) TRUST (Note 10) 1981 1980 SorpcES OF VORKING CAPITAL Operations:

Net income $ 3.491.376 $ 3.140 $ 737.901 $ 4.232.417 $ 2.403.732 Itema not requiring working capital - depreciation and amortisation (Note 14) 1.139,276 - - 1,139,276 987,809 VORKING CAPITAL PROVIDED FROM OPERATIONS $ 4.630.652 $ 3.140 $ 737.901 $ 5.371.693 $ 3.391.541 Disposal of property and equipment net of accumulated depreciation 193.190 - - 193.190 -

Proceeds frem sale of bonds 4.770.220 - -

4.770.220 2.646.000 Contributions 740.992 - -

740.992 366.348 Decrease in restricted assets 188,126 - -

188.226 27,839 TOTAL SCURCES OF WORKING CAPITAL $ 10.523,280 S 3,140 $ 717.901 S 11.264,321 S 6,432,22e APPLICATIONS OF WORKING CAPITAL Acquisition of flued assets S 2.598.647 $ -

$ 1.598.647 $ 2.836.008 Retirement of long-term debt 10.000 - -

10.000 35.000 Increase Ln restricted assets 4.849.375 - -

4.849.375 1.489.171 Increase in other assets 94.878 - -

94.878 140.195 Decrease in contributions 496 - -

496 -

Decrease in liabilities payable from restricted assets 543,274 - - 543,274 350,464 TOTAL APPLICATIONS OF VORKING CAPITAL $ 8,096.670 $ - S - S 8,096,670 $ 4,852,838 NET INCREASE IN VORKING CAPITAL S 2.426.610 $ 3.140 e '37.90: $ 3.167.651 e 1.57c.?co COMPONENT EL DENTS OF NET INCREASE

( DECR EAS E ) IN WORKING CAPITAL Equity in pooled cash and investments $ 2.124.220 $ 3.140 $ -

$ 2.127.360 $ 1.206.161 Restricted cash and investments - -

720.377 720.377 661.087 Accounts receivable 132.686 - -

132.686 430.254 Accrued interest receivable 4.862 -

17.524 22.386 (35.639)

Due f rom other governments (60.000) - -

(60.000) (51.671)

Inventory 12.388 - -

12.388 100.506 Prepaid expenses 7.222 - -

7.222 1.429 Accounts payable 388.964 - -

388.964 (707.494)

Accrued liabilities (71.472) - -

(71.472) (9.019)

Deposits payable (121.552) - -

(121.552) (3.999)

Contracts payable - retained percentage 12.000 - -

12.000 (12.000)

-Revenues collected in advance (2.708) - - (2,708) (225)

NET INCREASE IN WORKING CAPITAL $ 2.426.610 $ 3.140 $ '37.901 S 3.167.651 5 1.5'O.?90 See accompanying notes to financial statements.

37.

I 1

l

CITY OF KISSIMMEE, FLORIDA -

NOTES TO FINANCIAL STATJMENTS SEPTEMBER 30, 1981

1.

SUMMARY

OF SIGNIFICANT ACCOUNTING POLICIES Pund Accounting:

The City of Kissimmee organizes its accounts on the basis of funds and account groups, each of which is considered a separate accounting entity.

The various funds are grouped, in the financial statements in this report, into sev,en generic fund types and three broad fund categories as follows:

Governmental Fund Types -

. General Fund - accounts for all unrestricted resources, except those required to be accounted for in another fund.

. Special Revenue Fund - accounts for the proceeds of specific revenue sources that are restricted by law or administrative action to expenditure for specific purposes.

. Capital Projects Funds - accounts for financial resources segregated for the acquisition of major capital facilities.

. Debt Service Funds - accounts for the accumulation of resources for, and the payment of, interest and principal on general long-term debt.

. Special Assessment Funds - accounts for the financing of public improvements or services deemed to benefit the properties against which special assessments are levied.

Proprietary Fund Types -

. Enterprise Funds - accounts for operations that are financed and operated in a manner similar to private business enterprises.

Fiduciary Fund Types -

. Trus t and Agency Funds - accounts for the assets held by a governmental unit as a trustee or agent for individuals, private organizations and/or other governmental units.

Account Groups -

. General Fixed Assets - accounts for all fixed assets of the city, except fixed assets of Proprietary Funds and certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems.

. General Long-Term Debt - accounts for the outstanding principal balances on any general or special obligation bonds of the city.

Measurement Focus:

Governmental Fund Types - General, Special Revenue, Debt Se rvice , Capital Projects and Special Assessment Funds are accounted fci en a " spending" or

" financial flow" measurement focus. Accordingly, the reported undesignated '

fund balances provide an indication of available, spendable or appropriable resources.

38.

1 l

l CITY OF KISSIMMEE, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1981 Proprietary Fund Types - Enterprise Funds are accounted for on an " income determination" measurement focus. Accordingly, all assets and liabilities are included on their balance sheets, and the reported fund equity (total reported assets less total reported liabilities) provides an indication of the net worth of the fund. Operating statements for Proprietary Fund Types (on an income determination measurement focus) report increases (revenues) and decreases (expenses) in total net worth.

Accounting for the Electric Utility Fund is in conformity with the require-ments prescribed by the Florida Public Service Commission and the Federal Energy Regulatory Commission.

Fiduciary Fund Types - Agency and Expendable Trust Funds are accounted for like Governmental Fund Types; and Nonexpendable Trust Funds are accounted for like Proprietary Fund Types.

Fixed assets, which are not used in Proprietary or Fiduciary Fund opera-tions, are accounted for in a separate self-balancing General Fixed Assets Account Group. Long-te nn debts, which are not intended to be financed through Proprietary, Fiduciary or Special Assessment Funds, are accounted for in a separate self-balancing General Long-Term Debt Account Group.

Basis of Accounting:

Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements.

The modified accrual basis of accounting is followed by all Governmental Fund Types and Expendable Trust Funds. Under the modified accrual basis, expenditures other than unmatured interest on general long-term debt are recognized at the time liabilities are incurred, if measurable. Revenues are recognized in the accounting period when they become measurable and available. Revenues which are susceptible to accrual are as follows:

{ Federal and State Revenue Sharing Interest Income Proprietary and Nonexpendable Trust Funds are maintained on an accrual basis with revenues being recognized when earned and expenses recognized l when incurred.

Other Fiduciary Funds (Agency and Expendable Trust Funds) are accounted for on the modified accrual basis.

Budgets and Budgetary Accounting:

The City follows these procedures in establishing the budgetary data reflected in the financial statements: ,

j A. The City Manager submits to the City Commission a proposed operating budget for the ensuing fiscal year. The operating budget includes proposed expenditures and the sources of receipts to finance them.

39.

CITY OF KISSIMMEE, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1981 B. 'Public hearings are conducted to obtain taxpayer comments.

C. The budget is approved by the Commission and becomes the basis for the millage levied by the Commission.

D. The City Manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions that  !

alter the total expenditures of any fund must be approved by the City Commission. Appropriations lapse at year-end.

E. Formal budgetary integration is employed as a management control device during the year for the General Fund, Special Revenue Funds, Capital Proj ects Funds, and Special Assessment Funds.

Formal budgetary integration is not employed for Debt Service Funds because effective budgetary control is alternatively achieved through debt repayment provisions.

F. Budgets for the General, Special Revenue and Capital Projects Funds are adopted on a basis consistent with generally accepted accounting principles.

G. Budgeted amounts are as originally adopted, or as amended in accordance with City ordinance.

H. During the year ended September 30, 1981, the following budget overexpenditures were noted:

CENERAL FUND BUDGET EXPENDITURES EXCESS City Commission $ 34,819 $ 41,719 $ 6,900 Legal 30,000 45,809 15,809 Personnel 63,229 64,165 936 Federal / State grants - 54,770 54,770 Transfers 1,278,485 1,282,328 3,843 Airport Fund 119,167 133,623 14,456 Special Assessment Fund 100,000 175,738 75,738 Equity in Pooled Cash and Investments:

The City of Kissimmee, for accounting and investment purposes, maintains a pooled cash and investments account for all City funds. This gives the City the ability to invest large amounts of idle cash for short periods of time and to maximize earning potential. The " equity in pooled cash and investments" represents the amount owned by each fund of the City.

Receivables:

Utility (electric, water, sewer and utility taxes) operating revenues are generally recognized on the basis of cycle billings rendered monthly. The

. cycle with the meter reading date closest to September 30 is selected as the cutoff for accrual purposes. The City does not accrue revenues for services delivered during the next fiscal year that have not been read or billed by September 30. '

40.

CITY OF KISSIMMEE, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1981 Investments:

Investments are recorded at cost, which approximates market. Adjustments are made to cost, for any premium or discount, which is amortized over the maturity of the investment.

Inventories:

Supplies and fossil fuel inventories are stated at the lower of cost (determined on the first-in, first-out method) or market. Inventories in the governmental funds are accounted for by the consumption method (determined on the first-in, first-out method), wherein inventories are charged as expenditures when used.

The effect of the first-in, first-out method is to flow costs through the statement of revenues and expenses in the <tder in which they are purchased and assign a balance sheet valuation more nearly at current replacement value.

Taxes Receivable:

Taxes receivable are measurable, but net available as of the end of the fiscal year and thus are shown as deferred revenue. The deferred revenue will be recognized as revenue in the fiscal year that it becomes available.

Fixed Assets:

Fixed assets purchased in the Governmental Fund Types are recorded as expenditures at the time of purchase. Such assets are capitalized at cost in the General Fixed Assets Account Group, except for certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems. Gif ts or contribu-tions are recorded in the general fixed assets at fair market value at the time received. No depreciation has been provided on general fixed assets.

The fixed assets purchased in the Proprietary Fund Types are capitalized at cost when purchased. Depreciation is provided using the straight-line method. The estimated useful lives of the various classes of depreciable assets are as follows:

ASSETS YEARS Buildings 30 - 50 Improvements other than buildings 10 - 100 Equipment 5 - 25 Unamortized Bond Discounts and Issuance Costs:

The discounts and issuance costs on the Proprietary Fund's long-term debt are amortized using the straight-line method over the terms of the related issues. '

1 1

41.

l

CITY OF KISSIMMEE, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1981 i

Nuclear Fuel:

< Amortization of nuclear fuel is based on the cost, which is prorated by fuel assembly batch in accordance with the thermal energy that each assembly produces. Due to the uncertain future of the nuclear fuel reprocessing industry and government approvals for reprocessing the plutonium recycling, the City is estimating no value for residual j credits or costs for future reprocessing. ,

i Pension Plans:

The City has three pension plans covering substantially all the i full-time employees. General employees are covered by a plan established during 1968 that was amended and restated in 1975.

Employees of the Police and Fire Departments were enrolled in separate retirement plans adopted by the City effective January 1, 1976, superseding the previous state established plans. Annual costs of the pension plans are actuarially computed and include amortization of 1

past service costs over a period of 40 years. General employees contribute 4% of their annual salary to their plan. The City's policy

! is to fund the annual pension costs in the annual budget.

Reserves:

Governmental Funds and Certain Fiduciary Funds - Reserves are used to indicate that a portion of the fund balance is not appropriable for expenditure or is legally segregated for a specific future use. Usage

of reserves has been limited to the following items:

. Reserve for Encumbrances - indicates a portion of the fund i balance that has been segregated for expenditure upon vendor performance. This reflects items that have been ordered or committed for at year-end which have not been received nor paid l'

for.

. Reserve for Advances (Specific Fund) - indicates portion of the fund balance that has been segregated for a long-term (more than one year) advance to another fund. Amount is unavailable for appropriation for at least a year.

Proprietary Funds and Certain Fiduciary Funds - Reserves are used to indicate a segregation of a portion of retained earnings equal to the current assets that are restricted for meeting various covenants as may be specified and defined in the revenue bond indenture. Usage of reserves has been limited to the following items:

. Reserve for Bond Retirement - restricted for future servicing of the revenue bonds (maximum amount of debt service due in any ensuing year). ,.

. Reserve for Bond Asset Replacement - restricted for meeting of various contingencies as may be so specified and defined in the 1 indenture (frequently referred to as renewal, replacement and improvement).

42.

CITY OF KISSIMMEE, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1981

. Reserve for Employees' Retirement Systems - restricted for payment of retirement benefits.

Encumbrances:

Encumbrances represent contractual commitments in the form of purchase orders and contracts. Such encumbrances are not recorded as expenditures, but rather as reservations of fund balance for subsequent years' appropriation.

Total Columns on Combined Statements - Overview:

Total columns on the combined statements -

overview are captioned Memorandum Only to indicate that they are presented only to aid in financial analysis. Data in these columns do not present financial posi-tion, results of operations, or changes in financial position in conformity with generally accepted accounting principles. These columns do not represent consolidated amounts because interfund eliminations have not been made.

Reclassifications:

Certain September 30, 1960 account balances have been reclassified in this report to conform with the financial statement presentation used in 1981.

2. FIXED ASSETS The following is a summary of changes in general fixed assets during the year ended September 30, 1981:

BALANCE BALANCE OCTOBER 1, SEPTEMBER 30, 1980 ADDITIONS DELETIONS 1981 Land S 359,700 $ -

$ 359,700 Buildings 861,498 14,437 -

875,935 Equipment 1,534,611 333,497 57,191 1,810,917 Improvements other than buildings 241,978 78,792 -

320,770 Construction in progress 15,576 69,437 29,798 55,215 TOTAL $ 3.013.363 $ 496,163 L 86.989 S 3.422.537 Construction in progress is composed of the following:

PROJECT EXPENDED TO REQUIRED AUTHORIZA- SEPTEMBER 30, FUTURE TION 1981 COMMITTED FINANCING City Hall Addition S 750.000 $ 55.215 S 194.7S3 $ 500.000 43.

CITY OF KISSIMMEE, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1981 At September 30, 1981, the Proprietary Fund plant and equipment consisted of:

PLANT LESS:

AND ACCUMULATED EQUIPMENT DEPRECIATION NET Electric S 29,814.574 $ 8,713,498 $ 21,101.076 Water and Sewer 8,005,718 1,654,147 6,351,571 Airport 900,518 510,630 389,888 TOTAL $ 38.720.810 $ 10.878.275 $ 27.842.535

3. INTERFUND BALANCES Individual fund interfund receivable and payable balances at September 30, 1981 are as follows:

INTERFUND INTERFUND FUND RECEIVABLES PAYABLES General Fund $ 106,679 S -

Special Revenue Fund -

Federal Revenue Sharing Fund -

49,498 Expendable Trust Fund -

Section 8 H.A.P.P. Fund -

8,084 Agency Fund -

Occupational License Tax Fund -

49,097 TOTALS 106.679 S S 106.679

4. ELECTRIC, WATER AND SEWER REVENUE BOND COVENANTS The Electric Revenue Bonds, Series A, the Water and Sewer Revenue Bonds, Series A, the Electric Revenue Bonds. Series 1979-1 and the Electric Revenue Bonds Series 1979-2, Anticipation Notes, resolutions provide for:

A. Establishment and maintenance of various funds -

(1) Revenue Fund records all operating revenues and expenses of the system; ,

(2) Sinking Fund records all debt service requirements which includes the Sinking Fund account, bond amortization account and reserve account; (3) Renewal, Replacement and Improvement Fund records all '

the improvements, extensions and replacements of the i system; and . -

l (4) Construction Fund records the cost of major additions f to the system financed by revenue bonds.

l 44.

l

CITY OF KISSIMMES, FLORIDA NOTES TO FINANCIAL STATDIENTS SEPTEMBER 30, 1981 l l

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 existing bond ordinance; (2) Deposits to the Sinking Fund account are required on or before the 20th day of each month equal to one-sixth (1/6) of the interect coming due on the next semiannual interest payment date and one-twelfth (1/12) of the principal date; coming due on the next principal payment (3) Deposits to the bond amortization account are required a

on or before the 20th of each month equal to one-sixth (1/6) of the amortization installment coming due on the next semiannual payment date i (4)

' Deposits to the reserve accou;nt are to be equal to one- )

sixtieth (1/60) of the reserve requirement (maximum l

principal and interest) and are to be transferred on or before the 20th day of each month; and (5) Deposits to the Renewal, Replacement and Improvement Fund are required in each month equal to one-twelf th (1/12) of the adopted budget for that fund. The total annual deposit may not be more than 10% nor less than 5% of the gross revenues for the preceding fiscal year, however, that no such monthly deposit shall be required whenever the amount in such fund shall at least equal j

$1,000,000 and $375,000, respectively, for the Electric Utility Fund and the Water and Sewer Fund.

4 C. Early redemption -

The

bond ordinance provides for early redemption of outstanding bonds at call rates varying from 100% to 103% of the instruments' I

face value, dependent upon the call date.

' D. Investment restrictions -

(1) Funds of the sinking fund account, bond amortization account, reserve account and renewal and replacement account are required to be continuously secured in the same manner as - state and municipal deposits of funds are required to be secured by the Laws of the State of i

' Florida; and (2) All monies deposited shall be continuously invested in direct obligations of the United States of America, I obligations of its several agencies or Time Deposits in banks, trust companies or savings and loan associations b

represented by Certificates of Deposit. t-I 45.

~

CITY OF KISSIMMEE, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1981 E. The revenue bonds consist of the following serial and term bonds -

INTEREST FINAL DESCRIPTION RAT 2S AND DATES MATURITY Electric Revenue Bonds, 4.80% to 5.50%

Series A 4/1;10/1 10/1/07 Water and Sewer Revenue Bonds, 4.80% to 5.50%

Series A 4/1;10/1 10/1/07 Electric Revenue Bonds, 6.60% to 7.20%

Series 1979-1 4/1;10/1 10/1/10 Electric Revenue Bonds.

Series 1979-2 7.90%

Anticipation Notes 4/1;10/1 4/1/83 AMOUNT ORIGINAL OUTSTANDING AT DFSCRIPTION AMOUNT SEPTEMBER 30, 1981 Electric Revenue Bonds.

Series A $ 18,400,000 $ 18,400,000 Water and Sewer Revenue Bonds, Series A $ 5,525,000 S 5,525,000 Electric Revenue Bonds.

Series 1979-1 S 2,700,000 $ 2.675,000 Electric Revenue Bonds, Series 1979-2 Anticipation Notes $ 4,815,000 S 4,815,000 F. The City presently has outstanding serial bonds, which were refunded on January 4, 1978, as follows:

AMOUNT OUTSTANDING AT SEPTEMBER 30, 1981 ELECTRIC, WATER AND SEWER BOND ISSUES 1954 S 138,000 1963 2,515,000 1965 580,000 1967 1,390,000 1970 3,355,000 1971 850,000 1971-A 630,000 1973 3.445,0n0 1975 3,750,000 STATE OF FLORIDA POLLUTION CONTROL BONDS, SERIES F 1,415,000 S 18.068.000

CITY OF KISSIMMEE, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1981 Since governmental obligations are held in escrow for the payment of the principal and interest, these bonds are not liabilities to the City.

5. AIRPORT REVENUE BOND COVENANTS The Airport Revenue Bonds resolution provides for:

A. Establishment and maintenance of various funds -

(1) Airport Revenue Fund records gross revenues from the operation of the Airport facilities; (2) Airport Revenue Bonds. Series 1971 Sinking Fund records all the debt service requirements of the issue which includes the principal, interest, sinking fund and reserve requirements; and (3) Renewal and Replacement Fund records all extensions, enlargements, additions and replacements to the Airport facilities.

B. Restrictions on the use of cash in order of priority -

(1) Deposits to the Sinking Fund are required on or before the fifteenth day of each month equal to one-sixth (1/6) of the interest coming due on the next semiannual interest payment date and one-twelfth (1/12) of the principal coming due on the next principal maturity date; (2) Deposits to the Renewal and Replacement Fund an amount equal to one-twelf th (1/12) of five percentum (5%) of the gross revenues of the facilities for the previous fiscal year, until there shall be on deposit $50,000; and (3) Balance remaining can be used for any lawful purpose after making all of the above required payments.

C. Investment restrictions -

(1) Funds of the revenue fund, sinking fund, reserve account and the renewal and replacement fund are required to be continuously secured in the manner by which the deposits of public funds are authorized to be secured by the Laws of the State of Florida; and (2) All .aonies deposited shall be continuously invested or secured by direct obligations of the United States of America or Time Deposits in banks and trust companies represented by Certificates of Deposit.

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CITY OF KISSIMMEE, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1981 D. The revenue bonds (serial) con:.ist of the following -

INTEREST FINAL DESCRIPTION RATES AND DATES MATURITY Airport Revenue Bonds, 5.50% to 6.50%

Series 1971 6/1;12/1 12/1/95 ORIGINAL AMOUNT AMOUNT OUTSTANDING AT DESCRIPTION ISSUED SEPTEMBER 30, 1981 Airport Revenue Bonds, Series 1971 S 350.000 S 300.000

6. LIMITED AD VALCREM TAX BOND COVENANTS l'e Limited Ad Valorem Tax Bonds resolution provides for the establishment at ,' maintenance of a Sinking Fund to be held and administered by the City fo; the purpose of pay:.ng the principal and interest on the bonds as they become due. In each year, while any such bonds are outstanding, there shall be levied and collected a special limited ad valorem tax not exceeding five (5) mills in each year levied on all taxable property in the special taxing district comprising the municipal development district of the City over and above all other taxes authorized by law.

The Limited Ad Valorem Tax Bonds (serial) consisted of the following:

INTEREST FINAL DESCRIPTION RATES AND DATES MATURITY Limited Ad Valorem Tax Bonds 5.25% to 6.00%

10/1;4/1 10/1/93 ORIGINAL AMOUNT AMOUNT OUTSTANDING AT DESCRIPTION ISSUED SEPTEMBER 30, 1981 Limited Ad Valorem Tax Bonds S 171.000 S 147.000

7. EXCISE TAX REVENUE BOND COVENANTS The $265,000 Excise Tax Revenue Bonds resolution provides for: -

A. Establishment and maintenance of various funds - .

(1) Revenue Fund records all pledged excise tax revenues received by the City and required transfers to other funds as stated below; 48.

CITY OF KISSIMMEE, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1981 (2) Bond and Interest Sinking Fund records all debt service requirements of the issue, which includes the principal, interest, sinking fund and reserve requirements; and (3) Construction Fund records the cost of the proj ect financed by excise tax revenue bonds.

B. Restrictions on the use of cash in order of priority -

(1) Deposits of excise taxes are made promptly to the Revenue Fund as they are received; (2) Deposits to the Bond and Interest Sinking Fund are required on or before the 15th day of each month equal to one-twelfth (1/12) of the amount of one year's interest on all the bonds then outstanding and one-twelf th (1/12) of the principal of the bonds maturing on the next succeeding anniversary date; (3) Deposits to the reserve account in the Bond and Interest Sinking Fund are required on or before the 15th day of each month equal to $130 until such time as the funds total $15,600; and (4) Balance remaining may be used for any lawful purpose after making all of the above required payments.

C. Early redemption -

The bond resolution provides for early redemption of out-standing bonds at call rates varying from 100% to 105% of the instrument's face value, dependent upon the call date.

D. Investment restrictions -

(1) Funds of the sinking fund account and reserve account are required to be continuously secured in the same manner as municipal deposits of funds are required to be secured by the Laws of the State of Florida; and (2) Monies in the sinking fund and reserve accounts may be invested in direct obligations of, or obligations guaranteed by, the United States of America. Monies on deposit in the Revenue Fund shall not be invested at any time.

E. The revenue bonds (serial) consist of the following -

INTEREST FINAL DESCRIPTION RATES AND DATES MATURITY Excise Tax Revenue Bonds 5%; 9/1 9/1/2019 ORIGINAL AMOUNT .

AMOUNT OUTSTANDING AT DESCRIPTION ISSUED SEPTEMBER 30, 1981 Excise Tax Revenue Bonds S 265.000 S 263.000 l

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CITY OF KISSI.W EE, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTDiBER 30, 1981

8. CHANCES IN LONG-TERM DEBT The following is a su:nmary of bond transactions of the City for the year ended September 30, 1981 (in thousands of dollars):

BLICTllC uaTES aat LIntTB E2CISE 7titITT Is%ts a f sprm? as vawessa tas .otat w..... ions si.ies i s sts : 3io e iis as i n.3si

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.. . . . . ...is a.....

. . ., is i . nei t. m <m

. a au .197a,.i i ,s ..a . us . m . .o . n . - ,s The annual requirements to amortize all debt outstanding as of September 30, 1981, including interest pay =ents of $20,968,136, are as follows:

vtaa asetes EL84Ta tC uatta ass LIntTts EJCist sertt>eae 2 Utt t tTT stwas a t o met se vawsos vu 9 tat 6342 8 1.742.643 $ M3.193 9 32,68S S 47.*45 8 ts.tSe 8 2. t 7e.e le 1943 6.372.428 344.06e 38.464 16.993 16.314 6.802.603 1946 8.342.673 354.646 30.604 87.320 13.900 1.7M 938 Stel I. 4 4.373 364.151 29.76B 16.9 4 14.750 B . 788.371 1944 1.343.006 164.494 28,879 B 7.600 RS,610 4.184.828 6998 6.8M .144 1.7 94.8a t 619.094 87.816 77.40s 0.944 ,607 19e7 5992 1994 6.904.048 1.701.154 610.643 M.See 78,050 8,929.344 6 99 3 + 200 6 4,897.366 B . 7 92.2 6 8 . . 70.000 0. 767.a0 7 2002 + 20ue 6.910.671 t ,699. 913 .

• 70.230 0.6es .s 78 2007 2005 2,442.300 339,e06 . . 73.600 3.260. 3 4 2012 - 20e6 . . . . 77.800 7 7 lJ0 204 7 . tell . . . . 67.350  ? 310 FUtats 8 62,423.164 8 9.223.970 8 442.634 4 209.934 8 393.154 8 $ 3.J9 3. 4 h L...e es e4 e.es. sa.e i.e .e ..a 16.111.368 1. 7> .9 74 s e t .614 e7.014 130.150 70 964.136 1'r% at Passhart vaaast i is 190 _wvi t *** Evi i *

• un 1 *et 200 t *ts N 9'2'?' P W1 a

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CITY OF KISSIMMEE, FLORIDA NOTES TO FINANCIAL STATDiENTS SEPTEMBER 30, 1981

9. SEGMENT INFORMATION FOR ENTERPRISE FUNDS The City maintains three Enterprise Funds which provide water and sewer, electric utility and airport services. Segment information for the year ended September 30, 1981 are as follows:

ELECTRIC WATER AND TOTAI.

UTII,ITY $EWIR AI1 PORT ENT!1P115E TOND TUND TUND FUNDS Operating revenues 8 19.069.330 $ 1.551.672 3 84.569 $ 20.705.371 Depreciation and amortization expense 963.369 147.655 28,252 1.139.276 Operating income (lose) 4.060,939 271.319 (28,129) 4.304.129 operating transfers:

In - - 32.572 32.572 Out 1.200.000 - - 1,200.000 see income (lose) 2.845.585 647.144 (1.353) 3.491.376 Current capital:

Contributions - 740.992 - 740.992 Property, plant and equipment:

Additions 1.539.718 1.058.929 - 2.598.647 Deletions (193.231s - (9.884) (203.121)

Net working capital 3.871.261 2.341.695 43.081 6.261.037 Bonda and other '

long-tern liabilities:

Fayable from ,

operating revenues 21.075.000 5.525.000 300.000 26.900.000 Total equity 11.479.134 5.786.522 277.592 17.543.248

10. PINSIONS A. General Employees' Pensien Plan:

The General Employees' Pension Plan was stablished in 1968 and amended and restated in 1975. Annual costs of the pension plan are actuarially computed and include amortization of past service costs over a 40-year period beginning January 1, 1974. The employees contribute 4% of their annual salary to the plan. An actuarial study was conducted at January 1, 1981 and reflected a net actuarial deficiency of $1,060,113. The pension fund assets, of $2,140,311 exceeded the present value of the actuarially L computed vested benefits of $1,518,943 by $621,366 at January 1, 1981. Nonvested benefits totalled $3,438,963.

The City's contribution to the plan was $223,494 for fiscal 1981.

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CITY OF KISSIMMEE, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1981 B. Municipal Police Officers' Retirement Plan:

The Municipal Police Of ficers' Retirement Plan was amended and restated in 1976. Annual costs of the pension plan are actuarially computed and include amortization of past service costs over a 40-year period beginning January 1, 1976. An actuarial study was conducted at January 1,1981 and reflected a net actuarial deficiency of $12,631. The pension fund assets of S817,171 exceeded the actuarially computed vested benefits of

$278,495 by $538,676 at January 1, 1981. Nonvested benefits totalled $1,170,711.

The City's contribution to the plan was $61,210 for fiscal 1981.

C. Municipal Firemen's Retirement Plan:

The Municipal Firemen's Retirement Plan was amended and restated in 1976. Annual costs of the Retirement plan are actuarially computed and include amortization of past service costs over a 40-year period beginning January 1, 1976. An actuarial study was conducted at January 1, 1981 and reflected a net actuarial deficiency of $41,074 The pension fund assets of $435,402 exceeded the actuarially computed vested benefits of $158,422 by

$276,980 at January 1, 1981. Nouvested benefits totalled

$828,534.

The City's contribution to the plan was $29,434 for fiscal 1981.

The Entry-Age Normal-Level Percentage of Pay actuarial cost method was utilized in the January 1, 1981 valuations for all three funds. The significant actuarial assumptions for this plan are: (1) life expectancy is calculated using the 1965 Projected Annuity Mortality Table which was derived (com a published table (ISA IV), (2) an interest return of 6% for the general employees' plan and 7% for the police officers' and firemen's plans compounded annually, (3) a salary increase of 4% per year for the general employees and 5% for the police officers and firemen.

11. COMMITMENTS AND CONTINGENCIES A. The City is contingently liable for accumulated and unpaid vacation leave and sick leave. Current policy allows each employee to accumulate up to 20 days of vacation Itave. Time accrued beyond that is forfeited. The majority of employees utilize their annual accrual of vacation leave during the year accrued. Employees are allowed to accumulate up to 60 days of sick leave. Time accrued beyond that is paid to the employees every year at the rate of one-half pay. ,

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. CITY OF KISSIMMEE, FLORIDA NOTES TO FINANCIAL STATDfENTS SEPTEMBER 30, 1981 Accrued estimated liabilities not reflected in the accounts of the City, for vacation and sick leave benefits to which the employees are entitled, are as follows at September 30, 1981:

Vacation leave S 159,347 Sick leave 563,030 1

TOTAL S 722.377 B. The City has awarded a bid for $752,000 to a contractor for construction of a new City Hall building. The City plans to finance $500,000 of the cost with the sale of Excise Tax Revenue Bonds to the Farmers Home Administration, U.S. Department of Agriculture.

C. The City has a commitment to purchase three package sewage treatment plants and to have them installed at the Martin Street Plant. Total commitments as of September 30, 1981 approximated

$1.4 million dollars. These costs are to be financed through the sale of Water and Sewer Revenue Bonds during fiscal year 1982.

D. The City has awarded a bid for a gas turbine to generate electricity. The total estimated cost of this proj ect is

$25,000,000 with financing expected to come from the sale of Electric Revenue Bonds in early 1982.

E. The City is in the process of litigating a civil rights suit which alleges discriminatory practices by the City and seeks Federal Revenue Sharing funds as relief. Management believes that resolution of this matter is months away, but the final outcome will have no adverse financial effect on the City.

F. On October 31, 1979, several Florida municipal electric systems, including the City of Kissinnee , filed suit against Florida Power & Light Company (FPL) alleging violation of antitrust laws and seeking damages and various forms of equ ;able relief, including the opportunity to participate in or purchase power from FPL's nuclear units. FPL has subsequently filed counterclaims alleging violations of antitrust laws and alternative claims. On the basis of information and advice from counsel, subject to the risk of litigation, the City believes that FPL is very unlikely to prevail against the City on the counterclaims.

The City is also an intervenor, along with several other Florida electric systems, in proceedings against FPL seeking an opportunity to participate in or purchase power from various FPL nuclear power plants. l l

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I CITY OF KISSIMMEE, FLORIDA NOTES TO FINANCIAL STATDiENTS SEPTEMBER 30, 1981 C. , Leases:

(1) The property under capital leases consist of three sanitation trucks, one street sweeper, one dump truck -

and a telephone system at the Police ' Department. All leases have terms of five yea r's .- Title to the equipment shall be transferred to the City at the end of the lease terms and upon the vendor's receipt of one dollar. As of September 30, 1981, $53,323 in principal payments had been made on this equipment.

m The following is a schedule by years of future minimum lease payments under capital leases, together with the present value of the net minimum lease payments, ha of September 30, 1981: ,

YEAR ENDING SEPTEMBER 30, 1982 S 60,179 ,

1983 60,179 -

1984 60,179 1985 36,332 1986 5,484 .

TOTAL MINIMUM LEASE PAYMENTS $ 222,353 Less: Interest 38,782 PRESENT VALUE OF NET MINIMUM LEASE PAYMENTS $ 183.571_

(2) In addition, the City is lessor on various leases at the Airport. The following is a schedule of minimum -

future rentals on noncancelable operating leases:

YEAR ENDING SEPTEMBER 30, 1982 S 49,323 1983 42,744 1984 42,240 1985 39,848 1986 38,520 After 1987 475,315 TOTAL MINIMUM FUTURE RENTALS $ 687.990 Total income on noncancelable operating leases for the year ended September 30, 1981 was $77,509.

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- CITY OF KISSIMMEE, FLORIDA NOTES TO FINANCIAI. STATEMENTS SEPTEMBER 30, 1981

12. CASH IN LIEU OF GAS During the year ended September 30, 1981, the City, along with several other participating municipalities, received payments in lieu of gas from an agreement with Florida Gas Transmission Company and Amoco Oil Company.

The total received'in the current year was $255,485. This amount has been reflected as a reductica of fuel expense on the statement of revenues, expenses and changes in retained earnings.

13. CHANGE IN ACCOUNTING PRINCIPLE In accordance with'a change in.the generally accepted accounting principles that account for revenues from special assessments, the City has changed its method of recording such revenues. In prior years, the entire assessment amount was recognized as a financing source in the year of inception. C,urrent generally accepted accounting principles require that these items be recognized when they .become measurable and available as net current assets. Therefore, only insta13 meet payments due in the current year are recognized as ~ revenues. All future installment payments due are carried as deferred revenues.

The adjustment of $117,877, which is the cumulative effect of the new method on years prior to fiscal year 1981, is in::luded in 1981 expenditures. .The pro forma and cumulative effects on net income of years prior to fiscal year 1981 are not determinable.

14. CHANGE IN ACCOUNTING ESTIMATE During the year ended September 30, 1981, the City prepared a study of the

' remaining estimated useful lives of the fixed assets in the Airport Fund.

The study disclosed that the ~ estimated livec that had been in use were

, generally shorter -than actua1 asset lives. The City has, therefore, revised the remaining useful lives of its assets to reflect the results of the study. This resulted in a decrease of~ $54,055 (from $79,304 to

$25,249) in depreciation expense in the Airport Fund for the current year.

Future years depreciation expense will be reduced for the remainder of the revised estimated useful lives. This change results in annual depreciation which more nearly' approximates actual asset deterioration.

15. BOND COMPLIANCE As explained in Note 4, the _ resolution requires that specified monies be placed in' vario.us funds. As of September 30, 1981, the City was not in compliance with the resolution regarding the amount of monies transferred into the Sinking Fund Bond Amortization Account. At that time, the account

~was undarfunded by $21,851. Sufficient funds were reported to the account on December 14, 1981 to, correct the deficiency.

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PP A, r ..s COMBINING AND INDIVIDUAL FUND

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-- AND ACCOUNT GROUP STATEMENTS AND SCHEDULES

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l These financial statements provide a more detailed view of the g- " General Purpose Financial Statements" presented in the t, preceding subsection.

Combining statements are presented when there are more than

{ one fund of a given fund type. Individual fund and account group statements are presented when there is only one fund of a given type and for the account group. They are also necessary to pre-f sent budgetary comparisons.

Financial schedules are also presented that provide greater g detailed information than reported in the financial statements.

5. Schedules also present information that is spread throughout the

. statements that can be brought together and shown in greater detail.

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i GENERAL FUND 2

To account for resources traditional}y associated with governments which are not required to be accounted for ~in another fund.

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CITY OF KISSIMMEE, FLORIDA BALANCE SHEET GENERAL FUND SEPTEMBER 30, 1981 1981 1980 ASSETS Equity in pooled cash and investments S 641,470 $ 1,460,530 Accrued interest receivable 2,600 258,575 Accounts receivable - (net of $0 and $6,783 allowance for doubtful accounts) - 6,319 Taxes receivable 2,402 4,069 Due from Occupational License Tax Fund 49,097 17,274 Due from Section 8 H.A.P.P. Fund 8,084 34,102 Due from Federal Revenue Sharing Fund 49,498 34,244 Due from other governments 82,293 97,232 Inventory of materials and supplies 63,797 48,050 Prepaid expenses 3,500 3,500 Advance to Payroll Fund 2,000 2,000 TOTAL ASSETS S 904.741 S 1.965.895 LIABILITIES AND FUND EQUITY LIABILITIES Accounts payable S 31,179 $ 85,413 Sales tax payable 200 195 Accrued salaries and payroll taxes payable 173,202 144,746 Deposits payable -

11,900 Due to Payroll Fund - 1,351 Deferred revenue 2,402 4,069 Due to other governments 7,984 -

l TOTAL LIABILITIES S 214,967 S 247,674 l CONTINGENCIES AND COMMITMENTS (Note 11)

FUND EQUITY Fund balance:

Reserved for encumbrances $ 115,844 $ 17,734 Reserved for advance to Payroll Fund 2,000 2,000 Unreserved 571,930 1,698,487 TOTAL FUND EQUITY S 689,774 S 1,718,221 TOTAL LIABILITIES AND FUND EQUITY S 904.741 S 1.965.895 See accompanying notes to financial statements.

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l CITY OF KISSIMMEE, FLORIDA J

STATEMENT OF CHANGES IN FUND BALANCE GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 1981 i 1981 1980 FUND BALANCE AT BEGINNING OF YEAR $ 1,718,221 S 1,223,943 Changes during the current year:

Revenues 5,199,890 4,635,206 Expenditures (6,228,337) (4,140,928)

FUND BALANCE AT END OF YEAR S 689.774 S 1.718.221 See accompanying notes to financial statements.

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CITY OF KISSIMMEE, FLORIDA STATEMENT OF REVENUES AND OTiiER FINANCING SOURCES - BUDGET AND ACTUAL GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 1981 1981 1980 -

VARIANCE VARIANCE BUDGET FAVORABLE BUDGET FAVORABLE (REVISED) ACTUAL (UNFAVORABLE) (REVISED) ACTUAL (UNFAVORABLE)

REVENUES Taxes:

General property taxes -

current and delinquent $ 1,161,500 $ 1,063,909 $ (97.591) $ 1,016,364 $ 1,038,058 $ 21,694 Franchise taxes 89,850 85,520' (4,330) 53,250 68,436 15,186 TOTAL $ 1,251,350 $ 1,149,429 $ (101,921) $ 1,069,614 $ 1,106,494 $ 36,880 Licenses and permits:

Business licenses S 62,000 $ 135,844 $ 73,844 $ 57,100 $ 53,407 $ (3,693)

Building permits 77,750 67,662 (10,088) 54,000 103,618 49,618 TOTAL $ 139,750 $ 203,506. $ 63,756 $ 111,100 $ 157,025 $ 45,925 Intergovernmental revenues:

Federal and state grants $ 33,208 $ 82,170 $ 48,962 $ 186,000 $ 141,276 $ (44,724)

State Revenue Sharing 459,156 452,145 (7.011) 390,000 384,266 (5,734)

County road and bridge 50,000 42,048* (7,952) 29,000 $1,281 22,281 Shared taxes and licenses 110,000 161,783 - 51,783 87,700 152,455 64,755 County ambulance service 284,156 243,479. (40,677) 224,671 183,758 (40,913)

TOTAL $ 936,520 $ 981,625 L 45,105 $ 917,371 $ 913,036 $ (4,335)

Charges for services:

Garbage and trash fees $ 242,000 $ 262,920 $ 20,920 $ 243,000 $ 254,658 $ 11,658 Recreation fees 13,400 2,252 (11,148) 5,500 4,119 (1,381)

General Government charges 503,944 523,222 19,278 633,089 654,770 21,681 Cemetery sales and services 10,000 9,315 (685) 9,000 9,485 485 Cemetery lots 5,000 13,450 8,450 6,000 7,780 1,780 TOTAL $ 774,344 $ 811,159 $ 36,815 $ 896,589 $ 930,812 $ 34,223

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Fines and forfeitures:

Court fines and costs $ 53,500 $ 68,568 $ 15,068 $ 45,000 $ 67,228 $ 22.228 Miscellaneous revenue:

Interest earnings $ 153,140 $ 91,444 $ (61,696) $ 88,000 $ 183.892 $ 95.892 Donations from private sources 2,700 2,700 - - 12,000 12,000 Rents 3,600 3,579 (21) 3,600 4,708 1,108 Sales of surplus materials 5,000 4,974 (26) 7,500 4,742 (2,758)

Other revenue 10,000 19,889 9,889 6,000 19,090 13,090 TOTAL $ 174,440 $ 122,586 $ (51,854) $ 105,100 $ 224,432 $ 119,332 TOTAL REVENUES $ 3,329,904 $ 3,336,873 $ 6,969 $ 3,144,774 $ 3,399,027 $ 254,253 OTHER FINANCING SOURCES Transfers from other funds:

Federal Revenue Sharing Fund $ -

$ 250,761 $ 238,096 $ (12,665)

Electric Utility Fund 1,200,000 1,200,000 -

1,100,000 1,100,000 -

Utility Tax Fund 635,000 ,

635,004 4 536,850 536,850 -

Community Development Block Grant Fund - - - -

735 735 Proceeds from lease financing - 28,013 28,013 - - -

TOTAL OTilER FINANCING SOURCES $ 1,835,000 $ 1,863,017 $ 28,017 $ 1,887,611 $ 1,875,681 $ (11,930_)

TOTAL REVENUES AND OTilER FINANCING SOURCES $ 5,164,904 $ 5,199,890 $ 34,986 $ 5,032,385 $ 5,274,708 $ 242,323 APPROPRIATED FUND BALANCE 1,217,734 1,028,447 (189,287) 66,846 -

(66,846)

TOTALS $ 6.382.638 $ 6.228.337 S (154.301) j_LIL9L231 s 5.274.708 s 175.477 See accompanying notes to financial statements.

g; CITY OF KISSIMMEE, FLORIDA STATEMENT OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL.

CENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 1981 1981 1980 VARIANCE VARIANCE BUDGET FAVORABLE BUDGET FAVORABLE (REVISED) ACTUAL (UNFAVORABLE) (REVISED) ACTUAL (UNFAVORABl.E)

CENERAL COVERNMENT City Commission $ 34,819 $ 41,719 $ (6,900) $ 27,230 $ 29,016 $ (1,786)

City Manager 342,080 315,486 26,594 220,814 221,944 (1,130)

Community Development 70,995 67,223 3,772 57,268 44,744 12,524 Legal 30,000 45,809 (15,809) 27,975 28,915 (940)

Judicial 7,000 6,074 926 6,667 6,856 (189)

Finance 316,319 315,983 336 276,996 246,660 30,336 Central Services 354,484 342,402 12,082 267,932 266,674 1,258 Personnel 63,229 64,165 (936) 44,124 45,641 (1,517)

Federal / State Grants - 54,770 (54,770) 193,700 117,539 76,161 TOTAL CENERAL COVERNMENT $ 1,218,926 $ 1,253,631 $ (34,705) $ 1,122,706 $ 1,007,989 $ 114,717 PUBLIC SAFETY Police $ 1,366,114 $ 1,361,594 $ 4,520 $ 1,032.431 $ 1,041,040 $ (8,609)

Fire 948,829 888,773 60,056 720,906 666,537 54,369 Inspection 107,818 106,975 843 73,968 74,322 (354)

TOTAL PUBLIC SAFETY $ 2,422,761 $ 2,357,342 $ 65.419 $ 1,827,305 $ 1,781,899 $ 45,406 PUBLIC WORKS $ 1,121,133 $ 1,013,637 $ 107,496 $ 821,518 $ 812,540 $ 8,978 PARKS AND RECREATION $ 341,333 $ 321,399 $ 19,934 $ 260,890 $ 262,093 $ (1,203)

NONDEPARTMENTAL $ -

$ 906,837 $ 703,259 $ 203,578 TOTAL EXPENDITURES $ 5,104,153 $ 4,946,009 $ 158,144 $ 4,939,256 $ 4,567,780 $ 371,476

TRANSFERS Transfer to Capital Improvement Fund $ 1,200,000 $ 1,200,000 $ -

Transfer to Solid Waste Renewal and Replacement Fund 20,000 24,572 (4,572) - 23,957 (23,957)

Transfer to Capital Projects Fund - - - -

13.544 (13.544)

Transfer to Community Development Fund - - - 9,500 9,500 -

Transfer-to Airport Fund 34,603 32,573 2,030 27,675 37,755 (10,080)

Transfer to Special Assessment Fund - - -

122,800 122,800 -

Transfer to Debt Service Fund 15,500 16,801 (1,301) - 5,094 (5,094)

Transfer to Vehicle Replacement Fund 3,382 3,382 - - - -

Transfer to Demolition Fund 5,000 5,000 - - - -

TOTAL TRANSFERS $ 1,278,485 $ 1,282,328 $ (3,843) $ 159,975 $ 212,430 $ (52,675)

TOTAL EXPENDITURES AND TRANSFERS $ 6,382,638 $ 6,228,337 $ 154,301 $ 5,099,231 $ 4,780,430 $ 318,801 UNAPPROPRIATED BUDCET SURPLUS - - - - 494,278 (494,278)

TOTALS $ 6.382.638 $ 6.228.337 $ 151 DOL $ 5.099.231 $ 5.274.708 ) (175.477)

See accompanying notes to financial statements.

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- - . - - - = , .

i SPECIAL REVENUE WNDS Utility Tax - To account for the receipt and dis-bursement of an 8% tax on all pur-

, (Pases of electric, water, gas, telephone and telegraph services.

Monies collected from this tax are a secondary pledge on the outstanding Water and Sewer Bonds. Monies are typically used for General Fund purposes.

Federal Revenue Sharing - To account for the receipt and dis-bursement of Federal Revenue Sharing Entitlement Funds. A separate accounting is required by Federal law.

Capital Improvement - To account for the acquisition of various capital items. Money is transferred from this fund to a Capital Proj ects Fund for -major capital projects. These acquisitions are funded by transfers from the General Fund.

Vehicle Replacement - To account for the systematic replace-ment of City vehicles. These acquisi-tions are funded by transfers from the General Fund.

Solid Waste Renewal and To account for the systematic replace-Replacement - ment of capital items used in the City sanitation operations. City ordinance requires that 10% of garbage and trash revenues be placed in this fund.

Recreation Impact - To account for impact fees designated

, for the various City parks. Impact j fees are charged to each new living

unit constructed.

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• CITY OF FIS5tHMt t., tioplDA cetBINING BAIANCE SHEET Al.L SPECIAI. REVENUE FUNDS SErftmeEm 30, 1981 FEDERAI. SOf.lD WASTE UTII.lTY SEVENUF. CAPITAI. V ElllCI E RI.Nr.Jt,s. AND RECREATION TUTA15 TAE SHARikC IMPROVtMENT REPL ActNENT R EPl.ACIMtET IMPACT 1981 1980 ASSETS Equity in pooled cash and investsents $ 177.035 $ -

$ 892.283 $ 3,382 $ 24,287 % 20,882 $ l.117,469 $ 252.260 Due f rom utleer governswa.ta - 56,258 - - - -

56. h l 55,089 TOTAI. ASSETS l _ 122 E l 1 _ _ }i,211 $ 892.283 5 3,jtlZ m 16, g L _ _ lQ, g )._1.g g g j _ }gg, g 1.IABil.lTIF.S AND FUND EQUITY I.l ARll.!TI ES Due to General Fund $ -

4 49.498 $ -

$ 49.498 $ 34.244 i CONTINGENCILS AND COMMITHENTS l (Note ll)

FI;.4D EQUITY Fund balances - unreserved 177,035 6.753 892,283 3M 24,287 20.882 1.124,622 273,015 TUTAL,I.lARILITIES AND FUND EQUITY W ',1,Ql1 $ 56.251 1__1t1,g i Lg } 26,211 $ 20,101 }J.llidig $ 307 112 See accompanying notes to financial statements.

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CITY OF KISSINMFE, flDRil A CONBINING STATtMENT OF REVFAUES, EXPENDITURES AND CllANCES IN IVND BAIANCES ALL SPECIAL REVFAUF FUNDS FOR THE YEAR ENDED SFFTFNRFR 30, 1988 FEDERAL SOLID WASTE Utill3Y R EYENUE CAPITAL VEHICl E BENEWAL AND RECR EATION TOTAL.S TAX SHARING INPROVENENT BEPIACEMFET BErl.ACEMFMT INPACT 19Rl 1980 REvtNUES Tames:

Water revenue tas $ 21,062 $ -

$ 28,062 $ 17,177 Electric revenue tas 410,001 - - - - - 410,008 346,326 Bottled gas revenue tan 31,522 - - - - - 31,522 34,76e Telephone revenue ta 109.175 - - - - -

109.175 108,800 Recreation impact fees - - - - -

12.495 12.495 6.545 Intergovernmental revenue -

revenue sharing entitlement funds -

224.998 - - - - 224,998 222,797 Interest essnings 24,398 6,366 181,078 -

3.38 3 I 842 217,067 32,837 TUTAL REVENUES $ 596 158 $ 231,364 $ 181,078 $ -

$ 3.383 $ 14,337 $ l.026.320 $ 769 3 EXPENDITURES General Guvernment $ -

$ 26.070 $ -

$ 26.070 $ -

Capital outlay - 245,386 12,725 - - - 258,118 -

Debt service - - - - 33,502 -

33.502 -

TOTAL EXPENDITURES $ -

$ 245,386 $ 36,795 $ -

$ 33,502 $ -

$ 317,683 $ -

EXCESS OF REVENUES OVER (UNDER)

EXPLNDITURES $ 596,158 $ (14,022) $ 142,283 $ -

$ (30,119) $ 14,337 $ 708,637 $ 769,248 UTHI'R FINANCING SOURCES (USES) operating transfers in $ -

$ - $ l.200,000 $ 3,382 $ 24,572 $ -

$ l.227.954 $ 23,957 operatin8 transfers out (635,004) - (450,000) - - .

(1,08g,03 ) ();4,946) luTAL OTilER FINANCING SOURCES (USES) (635,004) $ -

$ 750,000 $ 3,382 $ 24,572 $ -

$ 142,950 ,$ (750,989)

EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) F.XPENDITURES AND trIHER USES $ '(38,846) $ (14.022) $ 892.283 $ 3,382 $ (5,547) $ 14.337 $ 851,587 $ 18,259 ITND BALANCES AT BEGINNING OF YtAR 215,881 20,775 - - 29,834 6,53 273,035 254,776 i

IOND BAI.ANCES AT END OF TEAR 1 IE94 5 6.753 1_M{gj $ 3 M 1 _ J3 @ j 1 Q Q g L,,,h[ g gy {,,,J g g)g See accue.panying notes tu (Inancial statementa.

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CITY OF KISSIMMEE, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL UTILITY TAX FUND FOR THE YEAR ENDED SEPTEMBER 30, 1981 VARIANCE  ;

FAVORABLE 1980 BUDGET ACTUAL (UNFAVORABLE) ACTUAL REVENUES

. Taxes:

Water revenue tax $ 18,500 $ 21,062 $ 2,562 $ 17,177 Electric revenue tax 464,000 410,001 (53,999) 346,326 Bottled gas revenue tax 30,000 31,522 1,522 34,766 Telephone revenue tax u5,000 109.175 (5,825) 108,800 Interest earnings 7,500 24,398 16,898 23,510 TOTAL REVENUES $ 635,000 $ 596,158 $ (38,842) $ 530,579 EXPENDITURES - - - -

EXCESS OF REVENUES OVER EXPENDITURES $ 635,000 $ 596,158 $ (38,842) $ 530,579 OTHER FINANCING SOURCES (USES)

Operating transfers out (635,000) (635,004) (4) (536,850)

EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES

-! AND OTHER USES $ -

$ (38,846) $ (38,846) $ (6,271)

FUND BALANCE AT BEGINNING OF YEAR 215,881 215,881 - 222,152

, FUND BALANCE AT END OF YEAR S 215.881 1 177.035 S (38.846) S 215.881 See accompanying notes to financial statements.

, 72.

CITY OF KISSIMMEE, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FEDERAL REVENUE SHARING FUhT FOR THE YEAR ENDED SEPTEMBER 30, 1981 VARIANCE FAVORABLE 1980 BUDGET ACTUAL (UNFAVORABLE) ACTUAL REVENUES Intergovernmental revenue -

revenue sharing entitlement funds S 250,000 $ 224,998 $ (25,002) S 222,797 Interest earnings - 6,366 6,366 7,313 TOTAL REVENUES $ 250,000 $ 231,364 $ (18,636) $ 230,110 EXPENDITURES Capital outlay 250,000 245,386 4,614 -

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES $ -

$ (14,022) $ (14,022) $ 230,110 OTHER FINANCING SOURCES (USES)

Operating transfers out - - - (238,096) l EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES $ -

$ (14,022) $ (14,022) $ (7,986)

FUND EALANCE A LBEGINNING OF YEAR 20,775 20,775 - 28,761 FUND BALANCE AT END OF YEAR S 20.775 $ 6.753 $ (14.022) $ 20.775 See accompanying notes to financial statements.

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CITY OF KISSIMMEE, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL CAPITAL IMPROVEMENT FUND FOR THE YEAR ENDED SEPTEMBER 30, 1981 VARIANCE FAVORABLE 1980 BUDGET ACTUAL (UNFAVORABLE) ACTUAL REVENUES Interest earnings S 116,929 $ 181,078 $ 64,149 S -

EXPENDITURES General Government $ -

$ 26,070 $ (26,070) $ -

Capital outlay 566,929 12,725 554,204 -

TOTAL EXPENDITURES S 566,929 $ 38,795 S 528,134 S -

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES $ (450,000) S 142,283 $ 592,283 S -

OTHER FINANCING SOURCES (USES)

Operating transfers in $ 1,200,000 $ 1,200,000 $ -

Oparating transfers out (750,000) (450,000) 300,000 -

TOTAL OTHER FINANCING SOURCES (USES) S 450,000 $ 750,000 S 300,000 S -

EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES $ -

$ 892,283 $ 892,283 $ -

FUND BALANCE AT BEGINNING OF YEAR - - - -

FUND BALANCE AT END OF YEAR S -

S 892.283 S 892.283 $ -

See accompanying notes to financial statements.

74.

CITY OF KISSIMMEE, FLORIDA i

STATEMENT OF REVENUES, EXPENDITL7tES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL VEHICLE REPLACEMENT FUND FOR THE YEAR ENDED SEPTENBER 30, 1981 VARIANCE FAVORABLE 1980 BUDGET ACTUAL (UNFAVORABLE) ACTUAL REVENUES $ -

EXPENDITURES -- - -

EXCESS OF REVENUES OVER EXPENDITURES $ -

OTHER FINANCING SOURCES (USES)

Operating transfers in 3,382 3,382 - -

Operating transfers out (3 382) - 3,382 -

TOTAL OTHER FINANCING SOURCES (USES) $ -

S 3,382 $ 3,382 $ -

EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES $ -

$ 3,382 $ 3,382 $ -

FUND BALANCE AT BEGINNING 2

0F YEAR - - - -

FUND BALANCE AT END OF YEAR S -

S 3.382 S 3.382 S -

See accompanying notes to financial statements.

75.

CITY OF KISSIMMEE, FLORIDA .

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SOLID WASTE RENEWAL AND REPLACEMENT FUND l FOR THE YEAR ENDED SEPTEMBER 30, 1981 VARIANCE FAVORABLE 1980 i BUDGET ACTUAL (UNFAVORABLE) ACTUAL REVENUES Interest earnings S 3,000 S 3,383 $ 383 S 2,014 EXPENDITURES Debt service 43,500 33,502 9,998 -

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES S (40,500) $ (30,119) S 10,381 $ 2,014 OTHER FINANCING SOURCES (USES)

Operating transfers in 20,000 24,572 4,572' 23.957 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (20,500) (5,547) 14,953 25,971 FUND BA1.ANCE AT BEGINNING OF YEAR 29,834 29,834 -

3,863 FUND BALANCE AT END OF YEAR S 9.334 $ 24.287 S 14.953 $ 29.834 See accompanying notes to financial statements.

i 76.

CITY OF KISSIMMEE, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND

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CHANGES IN FUND BAIANCE - BUDGET Ah3 ACTUAL RECREATION IMPACT FUND TOR THE YEAR ENDED SEPTEMBER 30, 1981 VARIANCE FAVORABLE 1980 BUDGET ACTUAL (UNFAVORABLE) ACTUAL REVENUES Recreation impact fees S -

S 12.495 $ 12,435 $ 6.545 Interest earnings -

1,842 1,842 -

TOTAL REVENUES $ -

S 14,337 $ 14,337 $ -

EXPENDITURES -

EXCESS OF REVENUES OVER EXPENDITURES S -

S 14,337 $ 14,337 $ 6,545 OTHER FINANCING SOURCES (USES) - - - -

i EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES $ -

S 14,337 $ 14,337 $ 6,545 FUND BALANCE AT BEGINNING OF YEAR 6,545 6,545 - -

FUND BALANCE AT END OF YEAR $ 6.545 $ 20.882 $ 14.337 $ 6.545 i

See accompanying notes to financial statements.

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I DEBT SERVICE FUNDS Municipal Development Authority - To accumulate monies for the payment

of the 1978 $171,000 Limited Ad Valorem Tax Serial Bonds with final maturity in 1993. Property taxes are levied against the Downtown Develop-ment District to finance the payment of the principal and interest.

Fire Department Substation - To accumulate monies for the payment of the 1980 $265,000, 5%, 40-year Excise Tax Revenue Bonds. Occupa-tional licenses are pledged for payment of the principal and interest.

Monies are transferred from the General Fund.

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CITY OF KISSIMMEE, FLORIDA COMBINING BALANCE SHEET i I

ALL DEBT SERVICE FUNDS SEPTEMBER 30, 1981 MUNICIPAL FIRE DEVELOPMENT DEPARTMENT TOTALS AUTHORITY SUBSTATION 1981 1980 ASSETS Equity in pooled cash and investments $ 35,383 $ 3,342 S 38,725 $ 26,943 Accrued interest receivable 50 -

50 -

TOTAL ASSETS S 35.433 $ 3.342 S 38.775 S 26.943 LIABILITIES AND FUND EQUITY LIABILITIES $ -

CONTINGENCIES AND COMMITMENTS (Note 11}

FUND EQUITY Fund balances -

Designated for debt service 35,433 3,342 38,775 26,943 TOTAL LIABILITIES AND FUND EQUITY $ 35.433 $ 3.342 $ 38.775 $ 26.943 See accompanying notes to financial statements.

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• CITY OF KISSIMMEE, FLORIDA COMBINING STATEMENT OF REVENUES, EXFENDITURES AND CHANGES IN FUND BALANCES ALL DEBT SERVICE FUNDS l

FOR THE YEAR ENDED SEPTEMBER 30, 1981 MUNICIPAL FIRE DEVELOP!ENT DEPARTMENT TOTALS AUTHORITY SUBSTATION 1981 1980 REVENUES Taxes - property taxes $ 17,707 $ -

$ 17,707 $ 18,252

Interest earnings 5,244 - 5,244 6,558 TOTAL REVENUES S 22,951 S - $ 22,951 S 24,810 EXPENDITURES Principal retirement $ 8,000 $ 2,000 S 10,000 $ 8,000 Interest and fiscal costs 9,850 13,250 23,100 13,356 TOTAL EXPENDITURES S 17,850 S 15,250 $ 33,100 $ 21,356 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES S 5,101 S (15,250) $ (10,149).S 3,454 OTHER FINANCING SOURCES (USES)

Transfer from General Fund S -

$ 16,801 $ 16,801 S 5,094 Transfer from Capital Projects Fund 5,180 - 5,180 16,229 TOTAL OTHER FINANCING SOURCES (USES) S 5,180 $ 16,801 S 21,981 S 21,323 EXCESS OF REVENUES AND OTHER SOURCES OVER i EXPENDITURES AND OTHER USES $ 10,281 $ 1,551 $ 11,832 $ 24,777 I

FUND BALANCES AT BEGINNING OF YEAR 25,152 1,791 26,943 2,166 l

l FUND BALANCES AT END OF l YEAR S 35.433 $ 3.342 S 38.775 S 26.943 i

See accompanying notes to financial statements.

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l' CAPITAL PROJECTS FUNDS Municipal Development

• Authority - To account for improvements to the - m Downtown Development District. Con-struction began in fiscal year 1979 and will be completed during fiscal 1982. Financing was provided through the sale of $171,000 of Limited - Ad Valorem Tax Bonds. ._J City Hall Expansion - To account for the construction of an addition to the current City Hall.

Design and construction started during fiscal year 1981 and should be com-pleted in late 1982. Financing is provided by $250,000 frem the Capital Improvement Fund and $500,000 from FmHA bonds. ,

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CITY OF KISSIMMEE, FLORIDA s

COMBINING BALANCE SHEET ALL CAPITAL PROJECTS FUNDS SEPTFMBER 30, 1981 MUNICIPAL '

, , DE7ELOPMENT CITY HALL TOTALS AUTHORITY EXPANSION 1981 1980 4

ASSETS Equity in po'oled cash and investments' S 6,788 $ 194,785 $ 201,573 $ 75,896 TOTAL ASSEIS $ 6.788 ? 194.785 .$ 201.573 $ 75.896 LIABILITIES AND FUND EQUITY LIABILITIES Accounts payable S 50 S -

S 50 $ 32 Contracts payable -

retained percentage - -

- 13,012

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TOTAL LIABILITIES $ 50 $ -

S 50 $ 13,044

' CONTINGENCIES'AND COMMITMENTS (Note 11)

.. FUND EQUITY _

Fund balances -

Designated for future expenditures 6,738 194,785 201,523 62,942 TOTAL LIABILITIES AND ,

FUND EQUITY $ 6.788 $ 194.785 $ 201.573 $ 75.986 J

t See accompanying notes to financial statements.

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d 84.

. CITY OF KISSL*0 FEE, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND i

^

' CHANGES IN FUND BALANCES ALL CAPITAL PROJECTS FUNDS

FOR THE YEAR. ENDED SEPTEMBER 30, 1981

- MUNICIPAL

' DEVELOPMENT CITY HALL TOTALS AUTHORITY EXPANSION 1981 1980 REVE!WES Interest revenue $ 5,180 $ -

$ 5,180 $ 11,736 EXPENDITURES Capital outlay _

56,204 55,215 111,419 334,697 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES $ (51,024) $ (55,215) $ (106,239) $ (322,961)

. OTHER FINANCING SOURCES' (USES)

- Proceeds from bonds- $ -

$ 265,000 Operating transfors in - 250,000 250,000 13,544

, Operating transfers out (5,180) - (5,180) (16,229)

! TOTAL OTHER FINANCING i .

SOURCES (USES) $ (5,180) $ 250,000 $ 244,820 $ 262,315 y'

EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER)

- EXPENDITURES AND OTHER USES $. (56,204) $ 194,785 $ 138,581 $ (60,646)

, FUND BALANCES AT BEGINNING 3

' OF YEAR 62,942 - 62,942 123,588 FUND BALANCES AT END OF YEAR S 6.738 S 194.785 $ 201.523 $ 62.942 p

F 4

See accompanying notes to financial statements.

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1 SPECIAL ASSESSMENT FUNDS Paving Assessments - To account for the costs of paving and drainage improvements. One-third of the project cost is paid by a transfer 3

from the General Fund and two-thirds is assessed to property owners.

Building Demolition Assessments - To account for the costs of demolishing condemned structures.

Cost of demolishing are assessed to the property owner.

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CITY OF KISSIMMEE, FLORIDA COMBINING BALANCE SHEET ALL SPECIAL ASSESSMENT FUNDS SEPTEMBER 30, 1981 BUILDING PAVING DEM0LITION TOTALS ASSESSMENTS ASSESSMENTS 1981 1980 ASSETS Equity in pooled cash and investments $ 220,368 $ 2,665 $ 223,033 $ 125,986 Special assessments receivable - (net of

$11,936 and $2,692 allowance for doubtful assessments) 196,535 2,355 198,890 146,522 Accrued interest on special assessments 6,134 - 6,134 4,763 TOTAL ASSETS S 423.037 S 5.020 $ 428.057 $ 277.271 LIABILITIES AND FUND EQUITY LIABILITIES Accounts payable $ 58,035 $ 2,250 $ 60,285 $ 34,826 Retainages payable - - -

14,756 Deferred revenue 164,327 - 164,327 -

TOTAL LIABILITIES $ 222,362 $ 2,250 $ 224,612 $ 49,582 CONTINGENCIES AND COMMITMENTS (Note 11)

FUND EQUITY Fund balances -

unrese rved 200,675 2,770 203,445 227,689 TOTAL LIABILITIES AND FUND EQUITY $ 423.037 } 5.020 S 428.057 $ 277.271 See accompanying notes to financial statements.

88.

. CITY OF KISSIMMEE, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL SPECIAL ASSESSMENT FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 1981 BUILDING PAVING DEM0LITION TOTALS ASSESSMENTS ASSESSMENTS 1981 1980 REVENUES _

Interest earnings on investments $ 16,186 $ -

$ 16,186 $ 9,617 Interest earnings on assessments 7,001 - 7,001 5,659 Special assessments 43,414 2,355 45,769 112,017 TOTAL REVENUES S 66,601 $ 2,355 S 68,956 $ 127,293 EXPENDITURES Street paving $ 166,494 $ -

$ 166,494 $ 204,263 Building demolition - 4,585 4,585 -

Bad debt expense 9,244 - 9,244 -

TOTAL EXPENDITURES S 175,738 $ 4,585 S 180,323 $ 204,263 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES $ (109,137) $ (2,230) $ (111,367) $ (76,970)

OTHER FINANCING SOURCES (I'SES )

Operating transfers in 200,000 5,000 205,000 122,800 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER)

EXPENDITURES AND OTHER USES BEFORE CUMULATIVE EFFECT OF AN ACCOUNTING CHANGE $ 90,863 $ 2,770 $ 93,633 $ 45,830 CTIMULATIVE EFFECT OF AN ACCOUNTING CHANGE _ (Note 13) (117,877) - (117,877) -

EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER)

EXPENDITURES AND OTHER USES $ (27,014) $ 2,770 $ (24,244) $ 45,830 FUND BALANCES AT BEGINNING OF YEAR 227,689 - 227,689 181,859 FUND BALANCES AT END OF YEAR S 200.675 S 2.770 $ 203.445 S 227.689 See accompanying notes to financial statements.

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ENTERPRISE FUNDS Electric Utility - To account for the provision of electric service to the residents of our service area. All activities to provide such service are accounted for in this fund, including, but not limited to, administration, genera-tion, transmission, distribution and customer service.

Water and Sewer - To account for the provision of water and sewer services to the residents of the City and some county residents.

All activities necessary to the provision of these services are accounted for in this fund, including, but not limited to, administration, i

plants and line maintenance.

Airport - To account for the operation and maintenance of the municipal airport.

All activities related to the airport are accounted for in this fund.

CITY CF KISSIMMEE. FLORIDA COM81NINO 3ALANCE SHEET ALL ENTERPRISE,ITNOS SEPTEMBER 30, 1981 WATER i TOTALS ELICTRIC AND CTIt!!Y S E'4ER AIRPORT 1981 1980 ASSETS CURRENT ASSETS Equity in pooled cash and investments S 2.529.356 3 2.332.909 3 53.206 $ 4.915.471 $ 2.814.353 Accrued interest receivable 17,109 3.813 -

20.922 16.060 Accounts receivable 1.949.011 - 2,519 1,951.530 1.312,100 1

less: allowance for doubtful accounts (14.808) - -

(14.808) (8.064)

Due from other governments - - - -

60.000 Inventory 868.356 33,232 -

901.638 889.250 Frepaid expenses 30,483 7,400 920 38,803 31,381 TOTAL CURIENT ASSETS S 5,379,507 $ 2,377,404 5 :o,d'! $ 7,813,556 S 5,615,280

?E3T3ICTED ASSETS 51asing funas - cash and i investments S 3,168.418 $ 769.733 $ 45,318 5 3.983.469 5 4,231,886 Construction funds - cash and investments 5.219.485 380.603 -

6.100.088 1.694,992 3cnd asset replacement fund -

cash and investments 1.200.000 375.000 50.000 1,625.000 1.158.387 Custceer deposits - cash and investments 698,589 - - 698,589 660,233 S 10,286,492 5 2,025,336 5 95,3t3 S 12,407,166 5 7,765,998 e

i T!XED ASSETS

?roperty, plant and equipment (Note 2) $ 29,814.574 5 8.005.718 5 900,518 5 38.720,810 $ 36,658,583 less accumulated depreciation (8,713,498) (1,654,147) (5'0,630) (10,378,275) (9,804,918)

S 21.101.076 S 6,351.571 S 339.68d S 27.862.535 5 20.353.665 Construction in progress 625,585 392.495 - 1.01S,080 813.*25 Inventory - nuclear f ael 525,532 - - 525,532 396,587 5 22,252,193 S 6,764,066 5 389,938 $ 29,3d6,147 5 28.063,977 4

0THER ASSETS cnanottized bond costs S 791.693 $ 134.041 5 7.417 - S 983.153 $ 923.295

'2namortised = aster plan - -

40.632 40.632 43,022 Land held for future use 609,740 - - 609,740 609,740 S t, 0L,433 5 134,041 S -d.CSL 3 L,o33,525 a ! 576,057

TOTAL ASSETS S ?o.319.625 s 11.330.947 $ 359.902 3 51.210.374 9 43.001.312

-See acecapanying notes to financial statements.

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I WAIER ELECTRIC AND TOTALS UTILITT SELTR AIRPORT 1981 1980 LIABILITIES AND TTJND EOUITY l CURRENT LIABILITIES (PAYABLE FROM CURRINT ASSETS)

Cash overdraf t $ -

$ 23.102 Accounts payable 996.452 12.255 1.755 1.010,462 1.399.426 Accrued taxes payable 137.054 3.115 1.610 141,779 90.150 Accrued salaries 59.536 19.239 2.266 81.041 61,198 Extension deposits payable 315.204 1.100 - 316,304 194.752 Revenues collected in advance - - 2,933 2.933 225 Contracts payable - retained percentage - - - - 12,000 TOTAL CURRENT LIABILITIES (PAYABLZ FROM CURRENT ASSETS) $ 1,508,246 S 35.709 $ 8,564 S 1.552,519 $ 1,780,353 Ct'lutENT LIABILITIES (PAYABLE FROM RISTRICTED ASSETS)

Accrued interest on customer deposits 5 10.372 5 - 3 -

$ 10,372 $ 9.635 Contracts payable - retained percentage 88.617 70.448 -

159.065 45.309 Accounts payable 48.294 8.935 - 57,229 -

Accrued interesc payable - revenue bonds - - 5,824 5.324 763.703 Customer deposits 708,444 - - 708,444 640,562 Revenue bonds payable - - 10,000 10,000 35,000 TOTAL CURRE:,"I LIABILIIIES (PAYABLE FROM RESTRICTED ASSET $) S 855,727 $ 79,383 S 15,824 5 950,934 S 1,494,209 OTRER LIABILITIET Revenue conds pefable (Notes 4 5 & 8) $ 21.075.000 $ 5,525,000 $ 290.000 $ 26.890,000 $ 26.900,000 3

Bond anticipation notes payable .

(Notes 6. 7 & 8) 4.815.000 - - 4.815,000 -

lessa unamortized bond discount (413,482) (95.767) (2,078) (511,327) (485,126) 5 25,476.5LS S 5.429,233 5 2B7,922 S 31,193,673 S 26,.16.97e COMMITMENTS UD CONTINCENCIES (Note 11)

TUND EOUITT contributed capital:

Cove rnment s 3 -

$ 336.331 $ 518.332 $ 854.663 $ 845.82S Private sources - 1,785,487 3.575 1,789.062 1,057,401 Other funds - 626,245 119,757 745,002 745,002 S - S 2,7ad,063 5 6 0,ee. S 3,383,727 5 2,6-8,231 Retained earnings:

Reserved for revenue bond retirement $ 1.385.657 $ 372.448 $ 33.450 $ 1,791,555 $ 1,791.555 Peserved for bond asset replacement 1.200.000 375.000 50,000 1.625,000 1.158.887 Unreserved - (deficit) 8,893,177 2,291,011 (446,522) 10,737,966 7,712,703

$ 11.479,13e S 3,038,*59 5 #363,072) S te,15 521 S 10,663,. 5 TOTAL FUND EQUIIT S 11,479,!34 8 5.786,522 $ 277,592 S 17,543,248 S 13,311,376 TOTAL LIABILITIES AND FUND EQUITY S 19.319.625 S !!.3?0.947 3 3am ac; g 31,240,37 3 23,cet 31; I

J See accospanytas notes to financial staterents.

95.

CITY OF KISSD2 TEE. FLCRIDA CCM51NING STATEMENT OF REVENUES. EXPENSES AND CHANCES IN RI*AINED EARNINGS ALL ENTERPRISE TUN 05 FCR THE YEAR ENDED SEPTEMBER 30, 1981 WATER '

ELECTRIC AND TOTALS UTILITY S E'4ER AIRPORT 1981 1980 CPEPATING REVENUES Charges f or services $ 19,069,330 $ 1,551,672 $ 84,569 $ 20,705,571 $ 15,874.687 CPERA!!NG EXPENSES c;eracians and =aincenance $ 14.087.782 $ 1.142.924 5 87.449 $ 15.318.155 $ 11.890.496 Oepreciation (Note 14) 920,609 137,429 25,249 1,083,287 933,716

!GTAL CPELA!ING EXPENSES S 15,008,391 $ 1,280,353 $ 112,698 $ 16,401,442 S 12,824,212 OPERA!!UG INCOME (LOSS) $ 4.060,939 $ 271,3t9 5 (29,129) $ i,304,129 5 3.050,475 N050PERATING 1E7ENUE (EXPENSES)

Interest revenue $ 1.418,418 $ 591.680 $ 15.129 $ 2,025.227 $ 1.111.468 Interest /anore12acion expense (1.433,772) (316,920) (20.925) (1,771.617) (1.51% 650)

Tap fees - 101,065 - 101,065 105,2e0 TOTAL NONOPERATING REVENUE (EXPENSES) $ (15,354) $ 375,825 $ (5,796) $ 354,675 S (293,902)

INCOME (LOSS) BEFORE OPERATING IRANSTERS S 4,045,585 $ 647,144 S (23,925) $ 4,658,804 3 2.756,571 CFE' RAT!NG 11tANSTERS cperacang crassiers in 3 - S - 3 32.572 $ 32.572 $ 37.755 Cp6 rating transfers out (1,200,000) - - (1,200,000) (1,100,000)

TOTAL OPERATING TRANSTERS S (1,200,000) $ - S 32,572 S (1,167,428) $ (1,062,245)

NET INCOHE (LOSS) $ 2.845.585 3 647.144 $ (1.353) $ 3.491.376 $ 1.694.328 LETAINED EARNINGS AT BECINNING OF YEAA - (deficic) 8,633,549 2,391,315 (361,719) 10,663,145 8,968,817 3ETAINED EARNINGS AT END OF TE.Ut -

(cecicicJ S 11.479.134 S 3.018.159 3 (362.07?) $ 14.'54.521 $ 10.463.145 See accompanying notes to financial scacements.

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CIIT OF KISS 12.EE. FLORIDA COMBININC STATEMENT OF CHANCES IN FINANCIAL POSITION ALL ENTERPRISE FL3DS FOR THE TEAR ENDED SEPTEMBER 30, 1981 WATER ELECTRIC AND TOTALS UTILITY SEWER AIRPORT 1981 1980 SocaCES OF WORKINC CAPITAL Operations:

Net income (loss) $ 2.845.585 $ 647.144 $ (1.353) $ 3.491.376 $ 1.694.328 Items not requiring (providing) working capital -

depreciation and amortization (Note 14) 963,369 147,655 28,252 1,139,276 487,809 VORKING CAPITAL PROVIDED FROM CPERATIONS $ 3.808.954 $ 794.799 $ 26.899 $ 4.630.652 S 2.682.137 Disposal of property and equipment not of accumulated depreciation 193.190 - -

193.190 -

Proceeds from sale of bonds 4.770.220 - - 4.770,220 2.646,000 Contributions -

740.992 -

740.992 366.848 Decrease in restricted assets - 188,226 - 188,226 27,839

• 0TAL SOCRCES OF WORKING CAPITAL $ 8,772,364 S 1,724.017 5 26,899 $ 10,523,280 S 5,722,824 APPLICATIONS OF kCRKINC CAPITAL Acquisition of fixed assets $ 1.539.718 $ 1.058.929 3 - $ 2.598,647 $ 2,838.008 Retirement of long-tern debt - -

10.000 10,000 35.000 Increase in restricted assets 4.846.864 -

2.511 4.849.375 1.489.171 Increase in other assets 80.937 13,941 -

94.878 140.195 Decrease in contributions - -

496 496 -

Decrease in liabilities payable from restricted assets 469,415 73,659 200 543,274 350,464 TOTAL APPLICATIO?iS OF WORKING CAPITAL $ 6,936,934 S t,146,529 $ 13.207 8 8,096,670 S 4,852,838 NET INCREASE IN WORKING CAPITAL $ 1.919.430 S 577.498 9 13.692 $ '2.426.610 $ e69.986 COMPONENT ELEMENTS OF NET INCREASE (DECREASE) IN WORKING CAPITAL Equity in pooled cash and 4

investments $ 1.473.139 $ 574,773 $ 76.308 $ 2,124,220 $ 1.193,705 Accounts receivable 131.128 -

1.558 132.686 430,254 i

Accrued interest receivable 4.051 811 -

4.862 (71.500)

Due from other governments - -

(60.000) (60,000) (51.671)

Inventory 14.220 (1,832) -

12.388 100.506 Prepaid expenses 8.066 (499) (345) 7.222 1.429 Accounts payable 379.789 8,956 219 388.964 (707.494)

Accrced liabilities (65.291) (4.841) (1.340) (71.472) (9.019)

Deposits payable (121.672) 120 -

(121.552) (3.999)

Costracts payable - retained percentage 12.000 - -

12.000 (12.000)

Revenues collected in advance - - (2,708) (2,708) (225)

NET INCREASE IN WORKING CAPITAL $ 1.935.430 1 577.499 ? 13.692 S 2.426.610 $ e69.096 I

3ee accompanying notes to financial statements.

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FIDUCIARY FUND TYPES I

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5 TRUST AND AGENCY FUNDS Expendable Trust Fund Section 8 H.A.P.P. - To account for the receipt of federal monies designated for housing cost

, assistance and the related expendi-tures for housing cost assistance and administration of the program.

. Nonexpendable Trust Fund Supplemental Care - To account for monies provided by people buying supplemental care in the City cemetery. Principal and interest will be maintained in the fund through fiscal year 1984. After this, interest may be transferred to the General Fund to defray the cost of cemetery operation and maintenance.

Pension Trust Funds General Employees - To account for the accumulation of resources to be used for the retire-ment annuities of all employees, except police officers and firemen.

Employees pay a flat rate as deter-mined by the pension plan and the City contributes an amount determined by an annual actuarial study.

Police Officers - To account for the accumulation of resources to be used for the retire-ment annuities of all police officers.

The state contributes money based upon the number of police officers and the City contributes an amount determined by an annual actuarial study.

Firemen - To account for the accumulation of resources to be used for the retire-ment annuities of all firemen. The state contributes money based upon the number of firemen and the City contri-butes an amount determined by an annual actuarial study.

Agency Funds:

Payroll - To account for the receipt of monies from various funds for gross payroll and the disbursement of net payroll and related employee liabilities.

Occupational License - To account for the receipt and dis-burse ment to the General Fund of' City occupational licenses. Occupational licenses are pledged for payment of i

debt service on FmHA bonds.

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CITT OF KISSI'OtEE, FLCRIDA CCM81NING BALANCE SHEET ALL TRUST AND AGENCY TUI;DS SEP T BER 30, 1981 IRUST

.NON-EXPENDABLE EXPESTAat!

SECTION 8 SUPPLEMENTAL GENERAL H.A.P.P. CAPE D'PLOYE ES '

ASSETS Equity in pooled cash and investments $ 9,421 $ 17,897 $ -

Restricted cash and investments - -

2.297.726

\cerued interest receivable - -

48.018

., Jue frea General Fund - - -

Oue frca other gover.:nents 20,245 - -

Prepaid expenses - - -

TOTAL ASSETS 9 29.666 1 17.397 s 2.345.741 LIA3f t!?IES AND FUND EOU!TT LIASILITIES Ac:ounts payable $ - $ - $ -

Taxes to be remitted - - -

Due to General Fund 3.084 - -

Advance from General Fund - - -

TOTAL LIABILITIES $ 8,084 $ - $ -

CCNTINCINCIES AND COMMITMENTS (Note 11) 1 FST ECUITY Iund salances Reserved for employees' retirement systese $ - $ -

$ 2.345.744 Unreserved 21,582 17,897 -

1 l TOTAL TC.'D IQUITY $ 21.$82 $ 17,ag $ 2,345.744 TOTAL LIABILITIES AND TUND EQUITT 5 29.666 3 17 . M 7 3 ?.345.744 4

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See accompanying actes to financial statements.

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ACENCY 9E?$10N (Note 10)

PGLICE OTTICER$' TIRENIN' S OCCUPATIONAL TOTALS RIT!P EMENT RETIR EMENT PAYROLL LICENSE 1981 1990 i

$ 23.900 $ 49,097 $ 100,315 3 81,180 877,659 471,642 - - 3,647,027 2.926,650 18,619 10,898 - - 77,535 60,011

- - - - - 1,351 20.245 -

- - 3,062 - 3,062 19,529 1 !c6.272 3 ca?.540 s 26.062 s 49.097 3 3.948.184 9 3.cag,e:S

$ - $ - $ 1,814 $ - $ 1,814 $ 2,347

- - 23,148 -

23.148 19,123

- - - 49,097 57,181 51,376

- - 2,000 ,

- 2,000 2,000

$ - $ 26,962 $ 49,097 $ 84,143 $ 74,951

$ 896,275 $ 482,540 $ - $ - $ 3,7*4,562 $ 2,986,661

- - - - 39,479 27,208

$ 896,278 $ 482,540 $ - $ - $ 3,764,041 S 3,013,869 5 996.279 9 182.440 $ 26.962 s 49.c97 s 3.g43.1e4 s ?.csg. ro a

a 103.

CITY OF KISSIMMEE, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE EXPENDABLE TRUST FUND FOR THE YEAR ENDED SEPTEMBER 30, 1981 SECTION 8 H.A.P.P.

1981 1980

- REVENUES Intergovernmental - federal grants S 316,938 $ 244,173 Miscellaneous revenue - 2,048 TOTAL REVENUES S 316,938 $ 246,221  :

EXPENDITURES Welfare expenditures:

Administrative salaries and expenses S 32,575 $ 29,723 Nonexpendable equipment 1,321 4,714 Housing Assistance payments 273,911 208,717 TOTAL EXPENDITURES S 307,807 S 243,154 EXCESS OF REVENUES OVER EXPENDITURES $ 9,131 $ 3,067 FUND BALANCE AT BEGINNING OF YEAR 12,451 9,384 FUND BALANCE AT END OF YEAR $ 21.582 $ 12.4_5_1_

See accompanying notes to financial statements.

104. I I

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> e CITY OF EISSIW.EE. FLORIDA 4

COMBINING STATEMENT OF REVENUES. EXT D SES AND CHANGES IN FUND BALANCES I ALL NONEXPDDABLE AND PDSION TRUST FUNDS FOR THE YEAP. ENDED SEPTEMBER 30. 1981 NON-6 EXPENDABLE PENSION (Note 10)

POLICE I SUPPLINENTAL C DERAL OFFICERS' TIREMEN'S TOTALS CARE EMA0YEES' RETIREMENT RETIRIMEW 1981 1980

! OPERATINC REVENUES Interest 3 2.025 $ 265.247 3 111.802 $ 60.336 8 439.410 $ 315.147 Contribution by employees - 81.181 - - 81,181 73.776 Contribution by City -

22.3.494 61.210 29.434 31f 138 396.592 Contribution by state - -

34.913 25.173 60.J86 49.735 Supplemental care 1.115 - - -

1.115 11.475 TOTAL OPERATING REVENUES S 3.140 $ 569.922_ $ 207.925 3 114.943 $ 895.930 S 846.725 OPERATING EXPEN%ES senefit paymen'ts $ -

$ 61.967 $ 10.367 $ 12.151 $ 84.485 $ 98.126 Refunds of contributione -

11.608 2.686 2.958 17.252 -

Miscellaneous costs -

30.671 12.558 9.923 53.152 39.195 TOTA". OPERATING EXPENSES S - $ 104.246 S 25.611 S 25.032 S 154.889 $ 137.321 NET INCCME $ 3.140 $ 465.676 $ 182.314 $ 89.911 5 741.041 $ 709.404 TUND BALANCES AT BECINNING OF YEAR 14.757 1.880,068 713.964 392,629 3.001.418 2.292.014 FtTJ SALANCES AT END OF YEAR 3 17.997 $ '.?45.744 S 896.278 3 482.540 $ 3.742.459 5 3.001.418 See accompanying notes to financial statements.

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CITT OF IISSI.'etEE. FLORIOA C0!tBINING STATDENT OF CIW;GES IN TINMCIAL POSITION ALL NONEIPENDABLE MD PENSION TRUST FL'NDS 9

TOR THE YEAR ENOED SEPT DBER 30, 1981 NON-EXPENDABLE PENSION (Note 10)

POLICE SUPPLDtENTAL GENERAL OFFICERS' TIRs N'S TOTALS CARE DPLOYEES' RETIREMENT RETIRDENT 1981 1980

$01.RCES OF '40RKING CAPITAL Operations -

Net income $ 3.140 $ 465.676 $ 182.314 i 89.911 $ 741.041 $ 709.404 APPLICATIONS OF ~409 KING CAPITAL -

NET INCREA3E IN '4ORKING 3 3.140 s 465.676 s 192.314 s 99.911 9 141.041 s 709.404 CAPITAL COMPONENT ELDENTS OF NET UCREASE (DECREASE) IN

'.CRXING CAPITAL ,

Equity in pooled cash and investments $ 3.140 $ - $ - $ - $ 3.140 $ 12.456 Restricted cash and investments -

452.642 179.468 88.267 720.377 661.087 i Interest receivanle - 13.034 2.846 1,644 17.524 35,361 t

NET INCREASE IN '40itKING CAPITAL t 3.140 $ 465.476 1_. 132.314 $ 99.911 5 741.041 9 709.404 f

i

t' See accompanying notes to financial statements.

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CITY OF KISSIMMEE. FLORIDA COMBINING STATEMENT OF CHANCES IN ASSETS AND LIABILITIES ALL AGENCY FL'NDS FOR THE YEAR ENDED SEPTEM3ER 30,1981 BALANCE SALANCE

, OCTOBER 1 SEPTEMBER 30 1980 ADDITIONS DEDUCTIONS 1981 PAYROLL FUND Assets:

} Equity in pooled cash and investments $ 21.867 $ 4.817.294 $ 4.815.261 $ 23.900 Due from General Fund 1.351 -

1.351 -

Prepaid expenses -

3.062 - 3,062 S 23.?t9 3 4.820.3!6 S 4.!!6.612 $ 26.962 Liabilities:

Accoucts payable $ 2.090 $ 542.522 $ 542.798 $ 1.814 Taxes to be remitted 19.128 952.959 948,939 23.148 Net salaries payable -

3.414.236 3.414.236 -

Advance from General Fund 2,000 - - 2,000

$  ??.219 S 4.909.717 3 4.905.973 ! 26.962 OCCUPATIONAL LICENSE FUND Assetst Equity in pooled cash and investments S 17.274 S I?6.9?8 1__ 105.135 5 40.097 Liabilities:

Due to General Fund S 17.274 S 136.859 5 105.115 5 49.097 TOTALS - ALL ACENCY FU5"JS Assets:

Equity in pooled cash and investments $ 39.141 $ 4.954.252 $ 4.920.396 $ 72.997 Prepaid expecaes -

3.062 -

3.062 Due from other funds 1,351 - 1,351 -

S 40.492 S 4.057.314 5 4.921.??7 S 76.0$o Liabilities:

Accounct payable $ 2.090 $ 542.522 3 542.798 $ 1.814 Taxes to be remitted 19.128 952.959 948.939 23.148 Due to General rund 17.274 136.958 105.135 49.097 Advance from General Fund 2.000 - - 2,000 Net salaries payable -

3.414.236 3,414,236 -

S 40.492 3  ?.046.675 S 3.011.109 5 ?6.059 See accompanying notes to financial statements.

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GENERAL FIXED ASSETS ACCOUNT GROUP 3

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! To account fer fixed assets not used in proprietary fund j operations or accounted for in trust funds.

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-<,m,- .---..-,-,_.,--m, en.n,,. . . , . , , , , - , n,,--, - - ,m.--_-n, -,n, n , . - - - -,,we

CITY OF KISSIMMEE, FLORIDA SCHEDULE OF GENERAL FIXED ASSETS SEPTEMBER 30, 1981 GENERAL FIXED ASSETS (Note 2)

Land S 359,700 Buildings 875,935 Equipment 1,810,917 Improvements other than buildings 320,770 Construction in progress 55,215 TOTAL GENERAL FIXED ASSETS 3 3.422.537 4

INVESTMENT IN GENERAL FIXED ASSETS Amounts invested to October 31, 1971 ,1) S 988,269 Amounts invested after November 1, 1971-General Fund revenues 1,490,940 State and federal grants 543,713 Gifts and contributions 55,539 Capitsi projects 344,076 TOTAL INVESTMENT IN GENERAL FIXED ASSETS S 3.422.537 (1) Investment records are not readily available for years prior to November 1, 1971.

See accompanying notes to financial statements.

110.

- CITY OF KISSIMMEE, FLORIDA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY FOR THE YEAR ENDED SEPTEMBER 30, 1981 BALANCE BALANCE OCTOBER 1, SEPTEMBER 30, FUNCTION AND ACTIVITY 1980 ADDITIONS DELETIONS 1981 GENERAL GOVERNMENT -

City Manager S 46,877 $ 1,544 $ -

$ 48,421 Community development 17,812 1,321 -

19.133 Finance 61,478 32,073 - 93,551 Central services 196,609 _24,415 3,250 217,774' General government buildings 136,873 - - 136,873 TOTAL GENERAL GOVERNMENT $ 459,649 $ 59,353 $ 3,250 $ 515,752 PUBLIC SAFETY Police $ 770,412 $ 133,042 $ 10,446 $ 893,006 Fire 602,917 95,210 1,500 - 69.6,627 Inspection 15,599 4,500 3,000 17,099 TOTAL PUBLIC SAFETY $ 1,388,928 $ 232,752 $ 14,946 $ 1,606,734 PUBLIC WORKS $ 721,653 $ 107,938 $ 36,498 ,$ 793,093 PARKS AND RECREATION $ 427,557 $ 26.683 $ 2,497 $ 451,743 CONSTRUCTION IN PROGRESS $ 15,576 $ 69,437 $ 29,798 $ 55,215 TOTALS $ 3.013.363 S 496.163 3 86.989 S 3.422.537 s

i See accompanying notes to financial statements.

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SCHEDULES

'[

, financial schedules are presented to provide greater detailed information than reported in the preceding financial statements.

This information in many cases has been spread throughout the

[' report and is brought together here for greater clarity. Financial schedules are not necessary for fair presentation in conformity I with Generally Accepted Accounting Principles.

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T CITY OF KISSiteEE. Fl.0RIDA Scill3)UI.E OF FIIFD ASSETS AND DEFRLCI ATipN El.ECTRIC UTILITY EVND FOR TiiE YEAR ENDED SEPTHtBER 30 1988 ASSETS ACCUNUBA1LD IJEPRECI ATION BALANCE ADDITIONS BAJANCE BALANCE BAl.ANCE ,

OCTOBER 1 AND SLl'TENBER 30 OCTOBER I. SEPTENBER 30 NET 1930 DELETIONS 1981 1980 DEPRECIATION RATE 1981 ASSET VALUE Huclear production $ 2.974.040 $ 28.485 $ 3.002.525 $ 265.088 $ 89.170 31 $ 354.258 $' 2.648.267 other production 6.913.909 530.539 7.444.448 2.762.696 204.92t 31 2.967.622 4.476.826 Transmission plant 6.915.137 (169.630) 6.745.507 251.938 166.879 2 - 2.92 418.817 6.326.690 Distribution plant 10.773.163 902.238 11.675.401 4.201.392 411.622 .5 - 41 4.613.014 7.062.387 Cencral 882g 63.777 946,693 311.822 47.965 3 - 10% 359.787 586.906 TOTAL.S Q g .lftg Q M QJ l_21 & b ijl j 7d9]g S 920.}R j_Liljd){ Qhiglg 4 See accompanying notes to financial statements. 4 >=* e i I

Gb CITY OF KISSlHitEE, FIA1RIDA ScalEDULE OF FIXEI) ASSETS AND DEPRECIATION WATER AND SEWiR FUND FOR TiiE YEAR ENDED SEPTEMBER 30, l981 ASSETS ACCUMulA1ED DErWECI ATION BALANCE ADDITIONS B Al.ANCE BALANCE BALANCE OCTOBER 1, AND SEPTEMBER 30, OCTOBER 1 SEPTEMBER 30 hET 8980 del.ETIONS 1981 1960 DEPRECIATION RATE 1981 ASSET WAl.UE WATER FIANT IN SEkVICE Property and plant $ 45,822 $ 19,857 $ 65.679 $ 9,079 $ 916 21 $ 9,995 $ 55,684 Machinery and squipment 57,018 3,588 60,606 24,236 9,446 201 33,682 26.924 tilghlands plant - land 6,000 - 6,000 - - - 6,000 Highlands plant - machinery and equipment 125,408 - 123,408 10,033 2,508 2% 12.541 112,867 Water lines 2,749,494 291,704 3,048,195 592,697 56,538 211 649,235 2,398,960 TOTAL WAIER PLANT IN SERVICE $ 2,983,742 $ 315,146 $ 3.298,8P8 $ 636,045 $ 69,408 $ 705,453 $ 2,593.435 StWEN PIANT IN SERVICE Pre-1954 system $ 398,098 $ -

                                                                     $            398,098 $    300,067 $      5,971     1.5%     $    3D6.018 $      92,060 Land                               663,643         -

663.643 - - - - 663,643 Sewer treatment plants 1,583,667 - 1,583,667 387.856 31,674 22 349,530 1,234,137 liighlands additions 190,051 - 190,051 15,204 3,801 2% 19,005 175,046 Sewage lines 1,115.291 341,818 1,457.109 111,152 12.431 II B23,583 1,333,526 Litt stations 243,913 - 243,913 56,965 4.878 21 61,843 182,070 Equipment 110.611 59.738 170,349 79,429 9,766 20% 88,695 81,654 TUTAL SEWER FIANT IN SERVICE $ 4,305.274 $ 401,556 j_,4,706.830 $ 880,673 $ 68,021 $ 948,694 $ 3.758.136 TOTAL.S 1_L2M.Qll j__ DfuM2 S 8.005.J g 1 _1,31(t,ZJg $ ljld21 L_1,{tg14g Q g[yg See accompanying notes to !!nancial statements.

                                                                                                                                                                         '     e CITY OF KISSIMEE. FLORIDA
 --                                                            SCilEDUI.E OF FlKf D ASSFTS AND DEPRECI ATION A1RPORT FUND FOR THE YEAR ENDED SEPTENBER 30. 1981 ASSETS .                             ACCIMUI.A1ED DFPRECI ATION RECI.ASSIFI-                                 DEPRtCIAil0N BAI.ANCE          CATIONS         BAI.ANCE       BALANCE           AhD               BAI.ANCE OCTOBER l.            AND       SEPTFNBER 30,   OCTOBER !.      R F.Cl.AS S I F I- SEPTFMBER 30        NET 1980          DFl.ETIONS        1981           1980            CATIONS             1988        ASSET VAlt!E I.and                                       $        7,973 $          -
                                                                                         $       7.973 $       -
                                                                                                                                                          $       7.973 1.and improvemeats                                  26,372          (23,335)          3,037        16.265           (16.265)             -

3.037 Buildings 241.526 (225) 241,301 111.703 9.114 120.817 120.484 Runway improvements 526.469 (76,417) 450,052 346.74) (33,550) 313.193 136.859 , leprovements other than buildings 65.419 95.171 160,590 - 61.207 61.207 99,383 Equipment 42,643 (5,078) 37.565 20,553 (5.l40) 15.413 22.152 TOTAL.S $ 910,1QZ $ (9.884) L j l @ $ 495.264 $ 11.JQ W 1q q $ 389,ggg See accompanying notes to finanejal statements. W

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STATISTICAL SECTION , . . J Statistical tabNs differ from financial statements because they usually cover more than one fiscal year and may present non-accounting data. These tables reflect social and economic data, financial trends and the fiscal capacity of the government. 4 S

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                    - . _ . ,              _ . _ _ _ . . , . . . , . - _           -o          ,,                             - .              .         _ , , ,                         _ _ . - - .                           .

MayZimaera Cemfwd PubLc Accountaus To the Honcrable Mavor, City Commissioners and City Manager City of Kissiemee, Florida ACCOUNTA'iTS' REPORT Our examination was made for the purpose of forming an opinion en the combined financial statements taken as a whole and on the cecbining and individual fund financial statements. The accccpanying financial information listed as statistical information in the table of contents is presented for the purposes of additional analysis and is not a required part of the combined financial statecents of the City of Kissittee, Florida. Such information has not been subjected to the auditing procedures applied in the examination of the combined. cc=bining and individual fund financial statements and, accordingly, we express ne cpinion.

        /       ,
              /

Tampa, Flc.ida November 11, 1981 l i ) l 121.

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e O e STATISTICAL INFORMATION

e 1 C2TT OF KISSIMEE, TLORIDA TA3LE 1 CENERAL FUND - EXPENDITURES ST DEPARTMENT (1) , LAST TEN FISCAL TEARS FEDERAL FISCAL TOTAL CITY CITY STATE I.EGAL AarD YEAR tU ENDITURES CCmISSION MANAGER GRAltTS PLANNINC JUDICIAL l 1981(2) $ 4.946.009 $ 4i,719 $ 379,651 3 54,770 $ 67,223 $ 51,883 1980 3,904,432 11,638 97.522 117.539 44,744 12.020 142,591 47.967 11,470 I 1979 3,499,704 13.294 109.052 1979 3.216 559 8,769 98,288 155,063 40,784 15.028 i 1977 2,888,949 7.750 . 84,878 - 50,103 13,143 1976 2.296,916 6,339 80,305 - - 16.499 1 1975 2,099,626 7,941 73,635 - - 20,000 . 1974 1,839.507 8.820 70,805 - - 21,414 1973(3) 1,240,495 4,563 23,970 - - 20.241 f 1972 1,266.812 7.396 25.059 - - 11.169 { (1) Adjusted for division transfers between departments. s (2) Nondepart::lental expensee reclassified and charged to appropriate departments. (3) Tiscal year - 11 months. I O I e 124.

r PUBLIC FARKS/ 3CND EPART-FINANCE SERVICES WORKS P0tICE FIRI INSPECT!CN RECREATICN MENTAL

    $    315.983 $    342.402 $ 1.013.637 $ 1.361.594 3  888.773 $     106.975 $     321.399 $        -

72.617 68.714 732.387 1.041.040 666.537 74.322 262.093 703.259 90.668 71.381 645.106 882.887 375.944 66.915 237.736 804.693 86.003 117.893 479.143 804.316 346.544 71.746 231.190 761.712 80.722 145.954 492.646 704.027 325.352 61.850 204.669 717.855 69.776 87.517 441.722 647.268 271.794 59.564 147.157 441.575 72.397 80.071 462.162 609.415 194.277 58.518 152.875 368.335 56.549 69.280 452.053 476.902 213.824 $7.945 129.470 232.445 37.635 41.719 319.261 292.848 155.058 33.682 64.718 246.800 23.789 34.999 314.301 436.392 138.139 2.'. 958 67.785 193.825 125.

v g CITY OF KISSINIEE, FLORIDA w TABLE 2 GENERAL FUND - REVENUES BY SOURCE I.AST TEN FISCAL YEARS LICENSES CilARGES OTilER FUND FISCAL TOTAL AND INTER- FOR FINES AND MIS- CONTRI-REVENUES TAXES PERMITS GOVERNMENTAL

• SERVICES FORFEITURES CELLANEOUS BUTIONS YEAR 1981 $ 5,199,890 $ 1,149,429 $ 203,507 $ 981,625 $ 287,842 $ 68,568 $ 136,035 $ 2,372,884 1980 4,635,206 1,106,494 157,025 1,151,132 291,310 67,228 224,432 1,637,585 1979 3,733,164 1,000,816 118,872 639,136 186,097 46,275 125,790 1,616,178 1978 3,313,102 995,336 101,339 814,871 152,292 26,864 122,829 1,099,571 l

1977 3,069,280 920,000 84,650 890,392 144,373 30,728 54,089 945,048 1976 2,529,639 962,699 88,190 622,018 137,865 51,482 37,251 630,134 1975 2,314,870 800,264 62,101 603,325 141,402 63,076 77,147 567,555 1974 2,107,880 680,065 81,488 578,738 242,260 63,006 60,558 401,765 1973** 1,531,448 400,748 143,536 518,190 159,557 92,491 23,121 193,805 1972 1,304,205 330,130 156,127 416,144 95,289 84,966 32,314 189,235

• Includes Federal Revenue Sharing Fund transfers.

C* Fiscal year - 11 months.

                                                                                                                                         = .

CITY OF KISSIMMEE, FLORIDA TABLE 3 PROPERTY TAX LEVIES. TAX COLLECTIONS AND ASSESSED VALUATIONS LAST TEN FISCAL YEARS RATIO ASSESSED OF TOTAL VALUATION TOTAL CURRENT PERCENT DELINQUENT TOTAL COLLEC- ACCUMULATED FISCAL (100% AT TAX RATE TAX TAX OF LEVY TAX TAX TION TO DELINQUENT YEAR MARKET) IN MILLS LEVY COLLECTIONS COLLECTED COLLECTIONS COLLECTIONS TAX LEVY TAXES 1980/1981 $199,226,059 5.446 $ 1,084,985 $ 1,061,242 97.8 $ 2,667 $ 1,063,909 98.1 $ 2,402 1979/1980 145,188,232 7.292 1,058,713 1,029,613 97.3 8,8'95 1,038,058 98.1 4,069 1978/1979 139,680,774 7.298 1,019,390 945,914 92.8 14.062 959,976 94.2 15,712 1977/1978 136,644,429 7.305 998,188 952,127 95.4 3,391 955,518 95.7 8,318 1976/1977 129,315,419 7.110 919,433 862,440 93.8 11,226 873,666 95.0 15.343 1975/1976 113,306,000 7.278 824,641 798,139 96.8 140,091 938,230 113.8 36,275 1974/1975 115,688,600 6.763 782,402 773,973 98.9 118,796 892,769 114.1 28,911 1973/1974 95,842,142 7.095 680,000 534,476 78.6 65 534,541 78.6 147,707 1972/1973 50,749,296 8.0 405,994 383,699 94.5 13,142 396,841 97.7 2,183 1971/1972 40,696,457 8.0 325,577 320,788 98.5 6,390 327,178 100.4 3,755 NOTE: State law mandates assessments to be at 100% of market (actual) value. C y

CITY OF KISSIMMEE, FLORIDA TABLE 4 SCHEDULE OF PROPERTY TAX RATES - ALL G7ERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS MILLS ($1 PER S1,000 VALUATION) SOUTH FLORIDA WATER

• FISCAL MANAGEMENT OKEECHOBEE SCHOOL YEAR CITY COUNTRY DISTRICT BASIN LIBRARY BOARD TOTAL 1982 5.061 4.973 .115 .243 .279 7.080 17.751 1981 5.446 4.973 .152 .250 .279 6.332 17,432 1980 7.292 6.265 .160 .262 .331 7.267 21.597 1979 7.298 6.398 .157 .240 -

8.525 22.618 1978 7.305 5.700 .105 .292 - 8.566 21.968 1977 7.410 5.620 .365 - - 8.607 22.002 1976 7.578 5.750 .375 - - 8.687 22.390 1975 6.954 5.380 N/A - - 8.600 20.934 1974 7.360 5.380 N/A - - 9.310 22.050 1973 8.500 5.750 N/A - - 8.830 23.080 128.

CITY OF KISSIMMEE, FLORIDA TABLE 5 SCHEDULE OF SPECIAL ASSESSMENT COLLECTIONS LAST TEN FISCAL YEARS FISCAL YEAR COLLECTIONS i 1981 $ 30,607 1980 7,085 1979 16,318 1978 22,669 1977 25,059 1976 63,264 i 1975 205 1974 8,004 1973 12,155 ' 1972 6,834 l' f NOTE: Special assessments are not a primary source of financing in Kissimmee. t i i i 129.

                ,,        -   ---        ,    ,.,.-e       -. -  -           - - - - - - - - - . .

CITY OF KISSIMMEE, FLORIDA TABLE 6 COMPUTATION OF LEGAL DEBT MARGIN SEPTEMBER 30, 1981 Assessed Value $199.226.059 Debt Limit: 20% of Assessed Value $ 39,845,212 Amount of Debt Outstanding - LEGAL DEBT MARGIN S 39.845.212 The above computation pertains only to general obligation bonds. Revenue bonds, as insued by the Enterprise Funds, do not have a debt limit per se: but rather are restricted by the ability to raise revenue to 1.25 times maximum outstanding debt. As long as that figure is maintained, revenue bonds may be issued without further restrictions. Special obligation or limited obligation bonds, as that issued in December, 1978 by the Municipal Development Board, are not considered as general obligstion debts.

                                                                                      )

130. j

CITY OF KISSIMMEE,. FLORIDA TABLE 7 COMPUTATION OF DIRECT AND OVERLAPPING DEBT l i SEPTEMBER 30, 1981 1 PERCENTAGE AMOUNT APPLICABLE APPLICABLE NET DEBT TO CITY OF TO CITY OF NAME OF GOVERNMENTAL UNIT OUTSTANDING KISSIMMEE KISSIMMEE d DIRECT DEBT s City of Kissimmee S None -% S - OVERLAPPING DEBT School Board of Osceola County General Obligation Debt S 3,400,000 21.50% 731,000 TOTAL AD VALOREM TAX SUPPORTED DEBT S 731.000 ) RATIOS Overall debt to 1981 taxable valuation .3669% Overall debt per capita $41.07 I , (1) Determined by ratio of assessed valuation of property subject to taxation in overlapping unit to valuation of property subject to taxation in City of Kissimmee. I ( I i 131. I

CITY OF KISSIMMEE, Fl.ORIDA U TABLE 8 RATIO OF GENERAL BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA LAST TEN FISCAL YEARS RATIO OF NET DEBT SERVICE BONDED DEBT NET BONDED FISCAL ASSESSED CROSS BONDED MONIES NET BONDED TO ASSESSED DEBT PER YEAR POPULATION VALUE DEBT AVAILABLE DEBT VALUE CAPITA 1981 17,800 est. $199,226,059 $ - 1980 15,487 145,188,232 - - - - - 1979 14,500 e:t. 139,680,774 - - - - - 1978 13,600 est. 136,644,429 - - - - - 1977 12,700 est. 129,315.419 - - - - - 1976 12,080 est. 113,306,000 29,000 3,196 25,804 .02 2.14 1975 11,817 est. 115,688,600 61,000 (1,142) 62,142 .05 5.26 1974 11,426 est. 95,842,142 81,000 401 81,401 .08 7.13 1973 N/A* 50,749,296 104,000 401 104,401 .21 N/A* 1972 N/A* 40,696,457 132,000 4,812 136,812 .34 N/A*

 $N/A represents not available.

 .                                 CITY OF KISSIMMEE, FLORIDA TABLE 9 RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES LAST TEN FISCAL YEARS RATIO OF TOTAL                 DEBT SERVICE OBLIGATION        GENERAL      GENERAL     TO TOTAL FISCAL         GENERAL         DEBT         OBLIGATION     EXPENDI-     GENERAL YEAR         PRINCIPAL      INTEREST     DEBT SERVICE    TURES (1)  EXPENDITURES 1981       S      -

S - S 5,296,792 - 1980 - - - 3,949,634 - 1979 - - - 3,465,289 - 1978 - - - 3,216,559 - 1977 29,000 1,157 30,157 2,919,106 .10 1976 32,000 2,298 34,298 2,331,214 .15 1975 20,000 2,989 22,989 2,122,615 .11 1974 23,000 3,787 26,787 1,866,294 .14 1973 28,000 5,935 33,935 1,274,430 .27 1972 27,000 5,673 32,673 1,299,485 .24 (1) Includes General, Special Revenue and Debt Service Funds. I 133.

CITY OF KISSIMMEE, FLORIDA

• TABLE 10 SCllEDULE OF ELECTRIC AND WATER REVENUE CERTIFICATE COVERAGE **

LAST TEN FISCAL YEARS NET REVENUE AVAILABLE FISCAL FOR DEBT SERVICE REQUIREMENTS DEBT SERVICE PRINCIPAL INTEREST TOTAL COVERACE YEAR REVENUES EXPENSES

                       $ 20,487,748 $ 14,087,782 $ 6,399,966 $                446,813 $    1,391,012 $    1,837,825      3.48 %

1981** 14,954,836 10,776,161 4,178,675 392,038 1,153,300 1,545,338 2.70 1980** 11,201,911 8,070,792 3,131,119 352,338 1,019,850 1,372,188 2.28 1979** 9,766,729 6,828,890 2,937,839 691,737 628,180 1,319,917 2.23 1978** 1977 9,236,705 5,948,805 3,287,900 195,000 945,215 1,140,215 2.88 1976 8.555,726 5,669,043 2,886,683 335,000 864,264 1,199,264 2.41 1975 6,532,669 4,896,188 1,636,481 280,000 799,153 1,079,153 1.52 1974 5,995,954 4,010.536 1,985,418 271,000 809,702 1,080,702 1.84 1973* 3,585,470 2,366,543 1,218,927 247,000 581,689 828,689 1,47 1972 2,684,073 1,798,168 885,905 239,000 593,242 832,242 1.06

• Fiscal year - 11 months.

   ** Prior to 1978, information represents the combined Electric and Water Systems.                 In 1978 Water System has been combined with the Sewer System.

NOTE: Maximum debt service in any subsequent year is $1,385,657.

                                                                                                                                                            = .

CITY OF KISSIMMEE, FLORIDA TABLE 11 SCHEDULE OF WATER AND SEWER UTILITY REVENUE CERTIFICATE COVERAGE IAST TEN FISCAL YEARS NET REVENUE AVAILABLE FISCAL GROSS OPERATING FOR DEBT SERVICE REQUIREMENTS YEAR REVENUES EXPENSES DEBT SERVICE PRINCIPAL INTEREST TOTAL COVERACE 1981 $ 2,143,352 $ 1,142,924 $ 1,000,428 $ 84,362 $ 306,085 $ 390,447 2.82 % 1980 2,062,970 1,058,784 1,004,186 79,400 306,086 385,486 2.60 1979 1,758,694 849,331 909,363 69,476 306,006 375,562 2.42 1978** 1,618,042 806,693 811,349 157,063 84,408 241,471 3.36 1977 559,802 473,997 85,805 32,000 31,611 63,611 1.35 1976 534,187 446,519 87,668 31,000 32,656 63,656 1.38 1975 559,464 391,/48 107,716 30,000 33,671 63,671 2.63 1974 372,616 260.641 111,975 29,000 34,656 63,656 1.76 1973* 278,329 130,541 147,788 29,000 35.656 64,656 2.29 1972 183,799 73,415 110.384 23,000 36,481 59,481 1.86

• Fiscal year - 11 months.

                                           ** In 1978, the Water System has been combined with the Sewer System.

NOTE: Maximum debt service in any subsequent year is $372,448. C Y

l r CITY OF KISSIMMEE, FLORIDA TABLE 12 SCilEDULE OF AIRPORT REVENUE BOND COVERAGE LAST EIGilT FISCAL YEARS NET REVENUE AVAllABLE FISCAL GROSS OPERATING FOR DEBT SERVICE REQUIREMENTS YEAR REVENUES EXPENSES DEBT SERVICE PRINCIPAL INTEREST TOTAL COVERACE 1981 $ 132,270 $ 87,449 $ 44,821 $ 10,000 $ 17,923 $ 27,923 1.61 % 1980 118,384 55,551 62,833 10,000 18,321 28,321 2.22 1979 109,836 76,414 33,422 10,000 19,049 29,049 1.15 1978 96,494 65,668 30,826 10,000 19,698 29,698 1.04 1977 68,891 54,771 14,120 10,000 20,347 30,347 .47 1976 63,488 39,190 24,298 - 20,679 20,673 1.18 1975 60,842 32,363 28,479 - 20,673 20,673 1.38 1974 73,696 22,915 50,781 - 20,673 20,673 2.46 NOTE: Maximum debt service in any subsequent year is $33,450.

a

 .                                  CITY OF KISSIMMEE, FLORIDA TABLE 13 TABLE OF DEMOGRAPHIC STATISTICS                                l CITY OF KISSIMMEE                       OSCEOLA COUNTY **

PERCENT PERCENT YEAR POPULATION INCREASE POPULATION INCREASE POPULATION 1950 4,310 - 11,406 - 1960 6,845 58.8 19,029 66.8 1970 7,119 4.0 25,267 32.8 1976 12,080 est. 69.7 37,676 est. 49.1 1977 12,700 est. 5.1 37,944 est.** .7 1978 13,600 est. 7.1 38,500 est. 1.5 1979 14,500 est. 6.6 42.344 est. 9.9 1980 15,487 7.7 49,287 16.4 1981 17,800 est. 14.9 52,500 est. 6.5 AS PROJECTED

• 1985 20,000 17.6 54,750 16.5 1990 22,000 10.0 62,500 14.2 1995 23,800 8.2 69,900 11.8 2000 25,500 7.1 77,300 10.6 2005 30,000 17.6 87,850 13.6
• East Central Florida Regional Planning Council.

    **0sceola County ranked 35th out of 67 counties in population.

Osceola County has 1,313 square miles which makes it the 6th largest county in Florida. Osceola County has 32.2 people per square mile which is the 43rd largest county in Florida. i AGE DISTRIBUTION OSCEOLA COUNTY STATE OF FLORIDA AGE  % POPULATION  % POPULATION 0-14 23.7 21.1 15-44 32.6 39.4 45-64 22.4 22.0 65 + 21.3 17.5 I i Figures are not maintained for individual cities. l l Prepared from " Florida Estimates of Population - 1980." l 137.

n CITY OF KISSIMMEE, FLORIDA

• TABLE 14 TABLES OF PROPERTY VALUES, CONSTRUCTION AND BANK DEPOSITS - OSCEOLA COUNTY
• FISCAL YEAR PROPERTY VALUES CONSTRUCTION 1981 $1,362,541,674 S 37,753,845 1980 988,111,269 27,173,852 1979 686,203,535 18,049,900 1976 618,771,355 13,825,463 1975 571,796,038 13,460,297 1974 568,004,186 N/A**

1973 568,383,016 N/A** Source: Osceola County Department of Building Inspection. City of Kissimmee Department of Building Inspection. BANK DEPOSITS SAVINGS AND LOAN COMMERCIAL BANKS ASSOCIATIONS PERSONAL DEMAND TIME FISCAL INCOME DEPOSITS DEPOSITS SAVINGS YEAR (MILLIONS) (MILLIONS) (MILLIONS) (MILLIONS) 1981 S N/A** S 62.5 S 102.7 $ 72.2 1980 N/A** 53.2 93.8 88.3 1979 N/A** 45.8 81.9 89.1 1977 N/A** 27.3 46.5 89.7 1976 N/A** 29.2 42.1 84.0 1975 161.8 27.9 35.5 76.1 1974 155.8 28.0 29.5 66.4 1973 141.4 26.1 28.0 62.0 1972 107.4 26.7 20.1 53.1 1971 89.4 21.4 17.5 42.2 1970 76.7 17.4 11.1 33.8 1969 66.5 13.4 8.5 30.0 1968 56.5 12.4 7.3 27.3 1967 47.6 11.3 5.9 24.8

• Figures shown are for entire county since City residents only comprise 35% of the entire county's population. To show figures for only the City would be misleading.

 **N/A represents not available.

138.

1 4

 ,                                  CITY OF KISSlMMEE, FLORIDA TABLE 15 SCHEDULE OF MAJOR TAXPAYERS TAXABLE ASSESSED VALUATION AS OF JANUARY 1, 1981 Florida Telephone Corporation                                    $      17,263,879 Dorado Apartments                                                        7,311,180 Medical Center                                                           6,049,234 4

K-Mart /Publix Shopping Center 4,134,965 Community Hospital (Humana) 3,992,943 Woodside Apartments (Cain) 3,946,232 Outrigger Apartments 3,464,581 Three Fountains Apartments 3.208,786 Mill Creek Mall 3,100,948 Emerald Green Apartments 2,997,919 4 Source: Osceola County Property Appraiser's Office. 139.

CITY OF KISSIMMEE, FLORIDA TABLE 16 MISCELLANEOUS STATISTICAL DATA FORM OF GOVERNMENT Commissioner - Manager DATE OF INCORPORATION PRESENT CHARTER ADOPTED 1883 1965 TERMS OF OFFICE Mayor / Commissioner and 4 Commissioners - Two Years City Manager - Appointed ANNUAL SALARIES OF OFFICERS City Manager. . . . . . . . . .$40,000 Building Director . . . . . . .S30,004 Assistant City Manager. . .. . 32,968 Parks & Recreation Director . 26,208 Finance Director. .. . . . . 28,532 Electric Utilities Director . 35,058 Central services Director . . . 24,037 Water & Sewer Director. . . . 30,316 Planning Director . . . . . . 26,326 Aviation Director . . . . . . 25,980 Police Chief. . . .. . . .. . 29,484 Public Works Director / Fire Chief. . . . .. . . . . 26,260 City Engineer . . . . . .. . 33,592 Personnel / Labor Relations Director. ... . . . . . . 23,884 AREA 0F CITY 10.0 Square Miles - Municipal Boundaries 85 Square Miles - Electric Service Area AREA 0F COUNTY 1,313 Square Miles BUILDING PERMIT ACTIVITY (CITY) YEAR NUMBER AMOUNT 1981 000 S 12,888,719 1980 1,015 21,586,987 1979 840 15,371,899 1978 847 10,900,281 1977 654 10,087,672 1976 656 6,075,542 1975 623 2,248,397 1974 506 5,619,651

          .                   1973          1,055       25,223,063 1972            790       36,141,259 140.

CITY OT KISSI?lMEE. TLORIDA _ TABLE 17 ti:LITT ENTERPRISE TWDS STATISTICAL DATA ELECTRIC UTILITY T W D NET OPERAT- ' INCOME (LOSS) TOTAL ING INCCMZ BEFORE EXTRA-TISCAL NLH3ER OF OPERATINC (LOSS) AFTER ORDINARY YEAR CUSTOKERS(l) REVENUE DEPRECIATION ITEMS (2) 1980/1981 14.507 $ 19.069.330 $ 4.060,939 $ 2.845.585 1979/1980 13.105 14.204.112 2.697.286 , 1.167.851 1978/1979 12.065 10.467.296 1.735.800 676.226 1977/1978 11.680 9.055.288 1.539.238 489.251 1976/1977 10.865 8.476.885 2.232.901 1.052.438 1975/1976 10.348 7.791.590 1.917.169 1.184,729 1974/1975 9.883 5.895.456 763.999 333.319-1973/1974 9.977 5.257.095 871.949 475.903 1972/1973 9.803 3.172.384 940.537 261.910 1971/1972 9.480 2.413.151 385.628 223.746 WATER AND SEVER UTILITIES FUND TISCAL YEAR VATER SEVER WATER SEWTR WATER SEVER WATER  !!'.TR 1980/1981 5.639 4.896 $ 1.551.672(3) $ 271.319(3) $ 647.144(3) 1979/1980 5.155 4.534 1.700.756(3) 514.177(3) 560.081(3) 1978/1979 4.779 4.267 1.758.694(3) 669.988(3) 474.988(3) 1977/1978 4.310 4.012 5 779.964 $ 654.215 $ 434.866 $ 92.502 444.786 1976/1977 4.171 3.187 339.996 413.674 75.807 (111.503) $ 13.677 $ (191.771) 1975/1976 4.021 3.687 356.607 391.706 93.082 (104.814) 3*.533 (168.125) 1974/1975 3.623 3.295 326.390 338.407 108.931 (107.527) 86.264 (164.933) 1973/1974 3.545 3.252 340.676 314.980 161.436 18.654 140.591 (5.314) 1972/1973(4) 3.478 3.176 272.738 243.041 138. G42 80.259 91.720 53.139 1971/1972 3.562 3.244 213.416 124.489 93.938 17.469 85.419 (11.282) (1) Average custemer ccunt for fiscal year. (2) After transfers to/from other funds and accounting change. (3) Combined by consolidation of funds. (4) 11 months - changed by Florida Statute to end September 30th. 141.

                                                                                   \

CI*T'UF KIS3I'O'EE, FLORIDA t TABLE L3 L SCHEDULE OF IN5tRANC::.fN TORCE ' S'iFTEMB ER 30. 1981 TYPE OF CC7ERACE PERSON CCCURRESCE ACCRECATE

                         'N PtERENS vE AUTOMOBILE-GENERAL LIABILITT -                                   4 Camprenensive Generals                     _

4;\ Bodily Injury Liability 5 - 3 1,300.000 $ 1.300,000

                               , Property Damage Liatility. ,                                                         -          1,100.000      1.100,000 Comprehensive Autoschile:

Sodily Injury LiaDL11ty < 1,100,000 1.300.000 -

       \     '

Property. Damage Liability - - , . 1,030.000 - Con ' Liability:

         ?iT'                                nary Liability                                                           -

1.300.000 -

                                           , Damage Liability                                                         -

1.100.000 1,100,000 Pe.. ..a1 Injury Liability - - 1,300,00G Automobile Physical Damage Collision - ACV less $250 deductible Fire and theft - ACV ,

NST!*T*IONAL - FIRI AND EXTENDED COVERAC_S E j Sutisings - $1.C00 deducctbie, 601 co-insurance - - 4.783,200 Personal Property:

                       %         $1.000 deductible. 901 co-insurance                                                  -                  -

899,000

                              ?roperty Floater:

5!0' d' eductible - - 16,857

                              ?olice Equipment
                                 $50 deductible                                                                       -                -            65,000 Contractors Equipment Special Endorsement                                               -                -           145,471 valuable Papers and Records Endorsement                                                 -                -            10,000 Cri=e:
                                  !cside/Cutside -
                                     $250 deductible                                                                  -                -            20,000
                          '0ILER AND VACHINERY - 3 ROAD 3LANKET C0VERACE 34,300 to $30,000 ooject senedule caductible                                           -                -        1.000,000 2C?KERS' COMPENSATION AND EM?LOYER'S LIABILITY                                      S ta tuto ry      Statutory          100,000
                          *.,W !NTCECO'I."* OTTICT!S' CCMFREMENSIVE                                                                                            '
                          ?ac6Ess:NAL L:Astelr1                                                                    250,000           500,000    1.000.000 AIRPORT-4ANCAPK!EPER'S LIABILITY l-                              Scotty injury ana Property Dasage LiabLlity                                             -         1,000,000           -

1 Mangarkeepers Liability: 5:eo deductible 100,000 300.000 -

                           ?' ?LIC IvPLOYEES 3LANKET 30ND l'                                                                                                                                    500,000 Ali employees                                                                           -                             -

, ?OS!?!CN SCPEDCLE city Manager _

                                                                                                                       -             125.000           ,
                           ?'3t.!C OFytCIA?, LIABILITY ilected and Appointed                                                                   -         1,000,000      1.000,000
  .                        ORorP LIFE AND HEALTH - EMPLOYEES                                                           -               -     PER SCHEDULE

( NUCLEAR ?RCPERTY DAMACE AND LIABILITY CCVERACE ' Purcr.ased in cooperation with Florida Power Corporation as a party to the Participatica Agreement. Coverages are andated through Federal regulations and are in addition to those shown above.

                   ,         x a
                                                                                                                                                                 %g Nm 142. ,                                                                                                                                      2
    ,I                              ,.

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o o RACKCROUND Kissimmee began as a tiny trading post and military outpost. After the Civil War, Hamilton Dissten acquired 4,000,000 acres of marshland and plains in the Kissimmee area. He built several sugar plantations and lueber camps and connected them with waterways and narrou gage railroads. l The location of Kissimmee on Lake Tohopekaliga and the coming of the railroad, made the town the natural center of economic activity for this region. By the early 1880's, Kissimee was a boom town and enjoyed fairly rapid growth through the turn of the century. Kissimmee had become an important water / rail transfer point for both travelers and commodities. A relatively significant resort business existed in the late 1800's and early 1900's. The community evolved in response to economic opportunity and geographic conditions. Industrial and warehouse uses were located between the railroad and the lakefront. (A wood products industry continues in this area even today.) The downtown was established on the other side of the tracks but still adjacent to the rail center. A few resort hotels were located downtown or near the lake front. Residential development spread out from the downtown, ger.erally to the west and south. Kissimmee was a well established town by the turn of the century. In fact, most of the major downtown structures that exist today were built during the late 1800's. The great Florida lar.d boom of the early 1900's created another wave of growth. Kissimmee was a city of over 2,700 people by the year 1920. The town became caught up in the land boom and sold municipal bonds to finance new roads and utilities to create new subdivisions. Unfortunately, this was done at the end of the land boom and the growth never came. The vivid memory of sunicipal debt financing growth that never occurred makes even today's residents reluctant to consider municipal bonding as a method of financing the anticipated growth of the town. After the collapse of the Florida land boom, Kissimmee entered a period of very slow growth. The City's population increased by only 500, less than 20% over a twenty-year span 1920 to 1940. During World War II, the Kissimmee Airport was built by the U.S. Army Corps. The military activity was a stimulant to growth and the coumunity grew westward toward the airport. During the 1940's, Kissinsnee 's population increased by 38%. Growth was further stimulated by the establishment of Martin Marietta Company, which marked the beginning of a heavy concentration of jobs in south Orlando. During the 1950's, the city undertook a major ef fort to encourage growth through the attraction of retirees to the community. The construction of Orange Gardens was a result of this effort. Residential growth in other areas of the City was occurring slowly by extending the existing grid street pattern. The success of the retiree-stimulated growth resulted in a population growth of almost 60% during the 1950's. The City's growth came to almost'a complete standstill in the late 1950's and continued that way until the opsning of Disney World in 1971. During the 1960 ' r. , the population of Kissimmee increased by less than 300 people or 4% over a 10-year period. 143. 4

i 9 The opening of Walt Disney World marked the beginning of a period of very rapid growth. The population of Kissiemee increased from 7,100 in 1970 to slightly over 12,000 in 1976, a 70% increase. The City would have grown more, but it was unable to provide sewer and other municipal services needed to suppc,rt growth. In order to accommodate new growth during this period, a major public sewer plant was constructed on Mill Slough north of U.S. 192. This plant has been a major factor in the growth of the northeast area. The growth of the Disney period was different from that experienced in the past. Prior to 1970, residential development was al=ost totally dominated by single family homes. Over 91% of all dwelling units were in structures containing less than four units. Most multi-family housing constructed before 1970 consisted of low income projects built in response to various Federal Programs. The opening of Disney World and its associated economic impact altered the mix of housing types in Kissimmee. Over 2/3 of all dwelling units built since 1970 were located in multi-family p roj ects. These multi-family proj ects contain over 1,700 dwelling units, but consumed less than 125 acres of land. This increase in multi-family housing constituted a significant change in housing types and the social character in the com-munity. The people living in the apartments cre more transient and the stability of the community was threatened. The Disney boom created an increase in commercial activity related to tourism. This impact is generally limited to two areas - the Vine Street restaurant, motel, service area and the Florida turnpike motel concentration area. The long-term impact of Disney World is just beginning to be expressed - the northward direction of growth is now challenged. U.S. 192 (Vine Street) has become the most heavily traveled road in Kissimmee with upwards of 30,000 vehicles a day. The highway is not only a tourist route, but also the access road to a large employment center. Future growth of the City will be oriented to U.S.192. The City of Kissimmee has gone through a major transition. In the 1880's, Kissimmee was considered a major community in Central Florida, its pre-dominance based on agriculture and timber. As the City grew acd attracted more residents, agriculture remained the economic base of Kissimmee. Cattle were introduced into the area in the 1930's to fill a void created by the decline of field crops, but the economy remained firmly rooted in agriculture. Agriculture, however, ceased to be a dominant industry and therefore the conamnity's role in the region declined during the 1920 to 1970 period. In 1970, Kissimmee could best be described as a rural town fairly remote from the metropolitan area. The town looked the part of its nickname "Kow-Town." However, the last eleven years and a small mouse have changed Kissimmee even more than most residents realize. I t. is rapidly becoming a suburban community with a great deal of pride in its "Kow-Town" heritage. I We must recognize that Kistimmee is in an entirely different position to capitalize on regional growth trends in 1981 than it was in 1970. 144

i p In tha early 1970's, Kissimmee's assets were limited - shopping was in l Orlando; residents were few; educational facilities were old and unimpres-sive; and cultural and entertainment opportunities were almost nonexistent. Kissimmee may not be the most sophisticated ss;n11 town in America, but the combination of Disney entertainment and shopping, the Tupperware 1 Auditorium, the Arts Center, new schools and a restaurant bonanza surely takes the town out of the rural class. In fact, more and more people are ( expressing a preference of wanting to live in a small town (near a metro- { politan area) with which they can idencify. Kissimmee's newly acquired assets, combined with the natural outdoor recreational opportunities that have always existed in the ares, maks the City an attractive place to live. The construction of Disney's World Showcase /EPCOT, costing over $700 million, will be the biggest economic. influence on the Orlando metropolitan area during the next ten years. You no longer need to be a pioneer to live in Kissimmee; it is a desirable suburban community. The amount of growth that occurs in Kissimmee during the ner.t ten years is completely dependent on the decisions of private developers and on the ability of the City to provide the facilities necessary to support rapid growth. . i )

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_ ,_ . 7_ . l t e . l P CITY OF GAINESVILLE, FLORIDA , , t COMBINED UTILITY FUNDS - GAINESVTLLE REGIONAL UTILITIES

                       -                                                        FINANCIAL STATEMENTS
     .--                                                                AND SUPPLEMENTARY INFOEMATION 1

I TEARS ENDED SEPTEMBER 30, 1981 AND 1980 with REPORT OF CERTIFIED PUBLIC ACCOUNTANTS e b . o.o 9 l 1 same 6  %%* m W- m r * *^ w

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                      .u           ..                                                                             . . . - - .                             . . - .                    . . _ _ . . . _                . .-   -

CONTENTS

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Report of x.'.ertified public accountants i Financial statements

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Balance sheet Statement of revenue and expense and retained earnings Statement of changes in financial position Notas to financial statements Supplementary information M Combined Utility Funds - Statements of net

              -                                       revenues in accordance with bond ordinance f or yes.rs ended 1977 thru 1981                                                                                                                      -                                  1

[ Electric Utility Fund - Statements of net __ revenues in accordance wi.th bond ordinances 3 i Wa.ter Utility Fund - Statements of net I revenues in accorde.nce with bond ordinances ' Sewer Utility Fund - Statements of net

         .7                                           revenues in accordance with bond ordinances                                                                                                                                              5

[ Schedule of utility plant properties - September 30, 1981 6 Schedule of accumulated depreciation and l'. amortization - September 30, 1981 7 M r i b. j l 1

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l'. _ _. _ _. . _ . . . . _ . ATX;MY@ LNG i~ f ARTHUR YOUNG & COMPANY 1500 INDEPENDENT SOUARE JACKSONVILLE. FLCRIDA 32202 Honorable City Commissioners City of Gainesville Gainesville, Florida 32601 _ We have examined the balance sheet of the combined utility funds L of the City of Gainesville, Florida, at September 30, 1981 and the re],ated statements of revenue and expense and retained earnings, and changes in financial position for the year then ended. Our examination was made in accordance with generally accepted

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auditing standards and, accordingly, included such tests of the accounting reccrds and such other auditing procedures as we r considered necessary in the circumstances. The financial

     ,-                      statements of the combined utility funds of the City of
     ,-                      Gainesville, Florida, for the year ended September 30, 1980, were

_ examined by other auditors,whose report dated December.30, 1980, expressed an unqualified opinion on those statements. In our opinion, the statements mentioned above present fairly the 7 financial position of the combined util.ity funds of the City of L. Gainesville, Florida, at September 30, 1981 and the results of

     ^

operations and changes in financial position for the year then ended. in conformity with generally accepted accounting principles , applied on a basis consistent with that of the preceding year. I" Our examination has been made primarily for the purpose of expressing an opinion on the financial statements, taken.as a whole. The accompanying statements of net revenues in accordance l~ with bond ordinances for the year ended September 30,1981 and l  ;' schedules.of utility plant properties and accumulated depreciation _- and amortization for the year ended September 30, 1981 are presented for analysis purposes and are not necessary .for a fair 1 f f "

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              --         -.n~n                       -                 -~        no-                                   ~              - - ~ *        - - -

2.____ _ _ _ _ _ . _ _. _ _ _ ._ _ 3-+- MRTMM V@FM3

     -                      Honorable City Com=issioners City of Gainesville
      ~

Gainesville, Florida 32601 page 2

         -                  presentation of the financial information referred to in the preceding paragraph. They have been subjected to the tests and other auditing procedures applied in the examination of the j,                     financial statements mentioned above and, in our opinion, except for the reporting of certain revenues in accordance with the City's Trust Indenture in the statement of net revenues in accordance with bond ordinances , whd.ch is a departure ~ from generally accepted accounting principles, are fairly stated in all l                      respects material in relation to the financial statements taken as r                     a whole.

L. The accompanying statements of net revenues in accordance with r' bond ordinances for the four years ended September 30, 1980 were L examined by othe'r auditors whose report dated December 30, 1980

        -                   expressed an unqualifie'd opinion, except for the reporting of L                     certain revenues in accordance with the City's Trust Indenture, r

which is a departure from generally accepted accounting principles. I w WT c d L December 11, 1981 u L L L t w w.

                                                    ._~.-_

_:i'~ ___ q l l a-. b l LIABILITIES AND FUND Ewm 1981 1980 Carrent TAmhi14 ties:

       -                 Accounts Payable and Accrued T Anh414 ties                               S 5,617,099 $ 4,005,436 Due to Otlutr Funds                                                              2,245,834          703,496 Current Liabilities Excluding Band r                              Anticipatico Notes                                                 7,862,933        4,708,932 Band Anticipation Notes Expected to be Ba#inan =4 40,000,000                          -

(Note 3) Total Current T Amhilities 47,862,933 4,708,932

Payable Frcun Bestricted Assets:

Utility Deposits (Note 4) . 1,269,709 1,251,019

       -                 Accrued. Interest Payable                                                       9,769,844        8,461,557 Cbostruction Trust Pands - Acwuuts, C:mtracts and Berninaoaa Payable (Note 7)                                              1,089,598        9,149,009 Utility Plant Improvment Fund - Accounts Payable and Accrued T Amhilities                                               455,880          112,286 c                 Utility Plant Inprovement Fund - Due to 5,334 Other Funds                                                                      6,676 7                           Total T A mhilities Payable Pzun Bestricted Assets                                                 12,591,707     18,979,185 L

Other Liabilities:

     .. -                1 cog-tenn debt - (Note 3)
               ~ --- Utilities System Bevenue Bonds Payable                                           265,000,000     215,000,000
        '                   Bond Anticipation Notes Payable-                                                      -     37,000,000
           .                Ims Unsmortized Band Discount                                               (1,755,750)     (1,575,908)

Total Iong-Term T A=hil4 ties 263,244,250 250,424,092 Deferred Credits (Notes 2 and 8) 4,330,094 2,020,715

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Total i A ahilities 328,028,984 276,132,924 _' Fund Equity: . Cbotributions in Aid of Cbestruction: Utility Plant and FwaiLy, Plant and Equipment u Cbutributed by k nicipality 3,974,496 3,974,496 Federal and State Grants in Aid of Construction 12,131,631 12,100,66'T Cbntribaticos fzun Custcners and Developers: i Plant Contributed by Developers 16,970,098 14,636,100

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     -                           Frent Footage, Meter Installation and Other c                            Connectims Charges                                                  11,263,556      10,905,894 Capital Facilities Charges                                              4,751,940        3,507,548 Total Contributions in Aid of Q:nstruction                                     43,072,321      45,133,765 m                 Betained Earnings:

Beserved for Debt Service (Note 3) 50,115,931 38,620,615

     ..'                     Unappropriated                                                             29,319,066       22,323,568
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Total Betained Ea W. 79,434,997 60,944,183

        -                          Tots 1 Pund Equity                                                  128,507,318    106,077,948 S456,536,302 s382,210,872
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                                                                                                                                                                       -l CITY & GAthwnLLE, Frmma CadBDIED UTIIIIT FDOS - GAINES7IIIE REGIGE, L'17LITIES
    '                                  STATEMENT T HSVENUE RO EKPENSE #D MATNED EARNDGS
    .-                                           Years Ended Septamha'- 30, 1981 and 1980 1981                           1980 Opers. ting Bevanuac:

SLles and Service Qarges $ s ,609,667 355,424,529 Other Operating Revenue 1,488,551 1,307,091 Total Operating Revenues 65,098,218 56,731,620 Operating Expenses:

    '             Operations and Maintanane a                                                             33,751,723                      28,995,183 Wnietive and General                                                                       7,538,830                     6,213,721
                 ~ Depmcia. tion ~ and Amartization                                                          6,260,147                     5,673,738

{' 47,550,700 40,882,642 15,848,978 Operating Incaue 17,547,518 s .. . Neo-Operating Revenue ( M - m ):

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Interest Revenue 12,088,756 8,431,632 1.

             - ---Intenst Expense                                                                      (10,012,564)                       (9,774,823) loss cx1 Sale of Iand                                                                                    -                  (71,075)
 -'~           Total Non-Operating Revenue (%w)                                                              2,076,192                    (1,414,266)

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Inccane Before Extraordinary Itan and

     <-           Operating Transfers                                                                     19,623,710                      14,434,712
     ~

ExtraorrHna7 Item - Settlement of

     ,            Litigatico (Note 8)                                                                        3,450,600                                     -

_- Inccane Before Operating Tansfers 23,074,310 14,434,712 I Operating Transfer to General Fund (4.583,496) (4,450,000) Net Income Retninari 18,490,814 9,984,'712 Betained Ea::nings, Weing 60,944,183 50,959,471 l - Betained Earnings, Ebding $79,434,997 $60,944,183 c. L. l - f See M & nying Notes to Financial Statar==nts. L. y_ h ime ( __

                  ,          ,.        .                _ . ~ _                                 _     .. _          ._                          _ . . _                  __

CI"Y T GAINES7IILE, FLT.IDA CDSINED UTIllTI FUNDS - GAINES7IU.E REGICNAI., LTIIIIIES 1 SIATEMENT T GAN3ES IN FINANCIAL KSITION 4 Years Ended Septa 9N=' 30,1981 and 1980 r 1981 1980 Source of Working Capital: Net Tnmna Before Extraordinary Item S 15,040,214 $ 9,964,712 Items ?bt Requiring Outlay of Working Capital -

                - - - -Depreciation and Aucrtization                                                                          6,496,923 _ 5,974,420 Working Capital Provided Fztzn Operations Befora Ertraordinary Item                                                                                21,537,137       15,959,132 Extraordinary Item                                                                                      3,450,600                         -
         ,                    Working Capital Pmvided From Operations                                                        24,987,737       15,959,132 Fwpea-Ly m =nnaal=                                                                                                 -              149,175
      . ...           ht'-4 ht*4 ans .in A414 n* cnn=truction                                                                 3,938,556       .3,812,469 Increase (Decrease) in Current L4a5414 ties Payable From Restricted Assets                                                                            (6,387,478)          9,834,770
     , ,                Increase in Miscellanecus Deferred Debits                                                            (3,027,233)                (92,053)
                    -tecrease in-Settlecents -Wittr-Fuel-Suppliers                                                           '- 704,250       -

704,250

        '             Proceeds of Iong-Te:m T AaM11 ties                                                                     50,000,000       65,000,000 0:ber (Net)                                                                                                (441,252)              136,116 F'          .-- -Total Sotm e of Working Capital                                                               . A4 774,580- 95,503,859
                                                                                                  ~ ~ ~..        ~

Use of Working Capital: F w gei-Ly, Plant and Equipment Additions 51,586 W 72,568,128

      . _               Tncres.se..in. Bestricted Assets                                                               . 13,139,262           7,190,998
  ,, m                 Payment of Iong-Term iAmMlities .                                                                     37,000,000       13,00u,000                        ,

Decrease (Increase) in Deferred C: edits (2,309,379) 607,716 Increase in UnaN Band m=mmt 343,972 922,318 L Total Use of Working Capital 99,760,201 94,289,160 Increase (Decrease) in Working Capital S(29.985,621) S 1.214.699 _ Changes in Working Capital by C--- - i.: O.trrent Assets - Increase (Decrease): Cash S 1,561,292 5'1,794,638 Receivables .2,987,385 850,158 Due Frcxn Other Funds (308,316) 73,910 i e P2epaid Expenses 182,964 (14,348) Inventaries 6,787,236 (486,197)

        '                  Settlements with Fuel Supplie:s                                                                             (43)            (552,447)

Current Liabilities - Decrease (Increase): Ar mmts Payable (1,460,209) (368,383) !. L. Accrued T.iah41ities (133,566) (170,751) ! - Due to Other Funds 397,636 88,059 L r Bcmd Anticipation Notes (40,000,000) -

   -                           Increase (Decrease) in Warking Capital                                                      S(29.985.621) S 1.214.699 i

I l See Ar evwrnanying Notes to Financ4al Statements. 1 m edP* y-me e- em we ,, , ,,,, 4,m,, ,

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CITY OF GAINESVTTLE, FIDRIDA COMBINED UTILITY FUNDS - GAINESVILLE REGIONAL UTILITIES NOTES TO FINANCIAL STATEMENTS t September 30, 1981 j 1. Summarv of Significan* Accounting Policies Basis of Accounting - The Gainesville Regional Utilities (GRU) consists of the Combined Utility Furds of the City of Ga.inesville, Florida, (City). The GRU uses the accrual be. sis of account $ ng and has adopted the unif orm system of accounts

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prescribed by the Federal E'nergy Regulatory Consnission. The electric, water and sewer funds are combined along with all restricted asset accounts since Utilities System Revenue Bonds (See Note 3) crosc-pledge the revenues of the three funds to the i paycent of those issues.

     -                             Investments - Investments are stated at amortized cort. This me: bod a.djusts cost f or any premium or discount, which is
      '                           amortized over the investment's maturity.
      ,'            . - -    . . Inventories. .. Inventories--a.re. s.tated a.t .cos*.:                 Lost f or L.         ' -

materials -1s- determined using weighted avera.ge unit cost.. Cost of fuel is determined using the last-in, first-out (LIFO)

  .r                              method. Obsolete and unusable items are reduced to estima.ted

[r._._= salvage. values.

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Utility Plant - Property and equipment are recorded at cost, or

             - -         -- estimated -original-.oost..where applicable. .Ma.intenance and

_- repairs are charged to opers. ting expense as incurred. The

             ..        ._ . average-.casr of..depr.eciable plant retired is eliminated from the r-plant accounts, and such cost plus removal expense less salvage t ;_                              is charged to accumulated deprecia. tion.                   Depreciation of Utility
                 . . . . Plant __is. cha.rged. to opera.tions and is computed using i.he
 .-                                straight-line method over a period of years considered as the
 '                                 estima.ted service lif e of the property.. Such depreciation rates b                                 are as follows:

c Electric Plant: l} Production Plant 2.222 - 4.000% Transmission and Distribution Plant 1.724 - 4.000% p" General and Conanon Pla.nt 2.000 - 16.667% t L

 '                                               Vater Plant:

Supply, Pumping, and Treatment Plant 2.000 - 3.704% 3.333%

 , g                                               Distribution Plant                              2.000 -                                              i s                                                 Genera 1 Plant                                  2.000 - 16.667%

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Sewer Plant:

j L- Pumping and Treatment Plant 2.326 - 3.704% , Collection Pla.nt 2.000%

  .                                                General Plant                                   2.000 - 16.667%

Completed Pla.nt Not Classified 0.000 - 3.571% (continued) l

                                             -w+
         , ,. . - e e amen

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           -~r         '-:-                 -                              -          - -                  -        .        ---

e 1 CITY OF GAINESVILLE, FI.DRIDA

        \                             COMBINED UTILITY FUNDS - GAINESVILLE REGIONAL UTILITIES                                                 '
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NOTES TO FINANCIAL STATEMENTS September 30, 1981 L ;

1. Suunnary of Significant Accounting Policies (continued) ,

t i Construction in Progress is not depreciated until completed and , placed into service. Vacatioh a'nd Sick Pay :- The City's policy is to allow limited vesting of employees' vacation and sick pay. The limitation on vacation is determined by the period of employment. Accrued ] -- unused sick leave may be added to an employee's length of service , j  ; at time of retirement for the purpose of computing retirement benefits. Vacation and sick pay s.re expensed as used. ! ' ~i Utility Revenue Recognition - Utility revenues are recorded as i earned. Customers. are b:L11ed monthly f or electric consumption on a cycle ba. sis and unbilled utility revenues are ?.ccrued be. sed on

     .          --the-estias.teda'e- c betwe- % 1 et mare re d hg- da.tes f.or each..

> L cycle and year end. Fuel adjustment revenues are recognized

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based on actua.1 fuel costs. Amounts charged cased on estimated i r costs are adjusted monthly for any differences between the actual

' LQ -                ----an+ esti ma+=d nost.s2.cuceractual.-costs _-are.-known . Such                                             .         .

differences are recorded as deferred debits or credits until used

c. a.s adjustments to billings. This method results in fuel lt

                   --          - ard-justment--eevenue-cecogn& tion- me,tching-aetual.-al-lowable fnel L-                              costs for any particular period.

l .-- [ Interfund Transactions - Interfund transactions and contributions

  *t                              are generally ma.de in accordance with budget ordinances.

t- .Interfund_transaetinne and ha i n n aas.,_.exe a rt divant h4111ngs 3or utility services (see Note 5) and transfers to the General Fund i of the City of Ga.inesville, are elimina.ted for the Combined C Utility Funds. Interfund loans, except loans between construction trust funds, do not bear interest.

  +i L                        Allowance for Funds Used During Construction - An allowance Ior
  ~                                                                                                                                             '

interest on borrowed funds used during construction of 310,860,000 in 1981 and 45,960,000 in 1980 is included in .!u Construction in Progress .and as a reduction of interest expense.

, '                               These amounts are computed by applying to the monthly balance of projects under construction the effective interest rate on the 8

funds borrowed to finance the projects. The effective interest i b, rates ranged from approximately 5.5% - 9.3% in 1981 and 5.5% - l 9.0% in 1980. r

          "                       Amortization - Miscellaneous deferred debits with 1981 balances                                               ,

of S81,085 and $163,461 a.re being amortized on a straight-line basis over 10 years and 20 yes,rs, respectively. Unamortized bond discounts a.nd issuance costs are being amortized over the life of . - the bonds using the interest method. (continued)

                                        .e,   .   - * * = -        ** *

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CITY OF GAINESVILLE, FIDRIDA COMBINED UTILITY FUNDS - GAINESVILLE REGIONAL UTILITIES [: NOTES 'IO FINANCIAL STATEMENTS

e. September 30, 1981 1.

[~ 2. Settlements with Fuel Suppliers t GRU, a.long with seven other cities (" cities") has cutered into

        " - - -                 settlement. ageements and genera-1 mutua1 releases dated July 12, 1977 with Florida Gas Transmission Company (FGT) and with AMOCO Production Company (AMOCO). The settlement agreements r                     are summarized as follows:

L Total - for City of Ga.inesville Eight Cities Share P Initial' Cash Payment From L FGT and AMOCO $ 3,000,000 $ 582,892 Additional Amounts -Payable r __..in.Eithav _Incr.emental

[ AMOCO Ga.s" or " Oil Equivalency Payments":

          -                               FGT                                                                      7,000,000                     1,314,600
                            --- - - . AM_OCO                 . .,,. _ ,,,,, _,_,
                                                                                                     - - ..S.000,000-                 ._ _ .1.,502,400 Total Settlements with
          ,_     - -- ' ~ FGT/ AMOCO                                                        -  - - - - " 318 ,'00 0 , 000 -              -- S3,399,892
     ~

_ . .The abov.e_. Settlement _.agr.eements. provide that. .FGT. And .AMOCD will r pay the " cities" an a. mount not exceeding $15,000,000 to the

    -L                          extent FGT fa11s to de11ver 20.6 mission MMBTuS of 1ncrementa1 AMOCO Gas" to the " cities", at the minimum guaranteed value of e-                    72.82 cents per MMBTU of any shortfall. Any such payments will Y                     be made at scheduled times within a four-year period beginning
   -"                           July 1, 1978. The settlement agreements further provide that FGT
          ,                     and AMOCO will also make " oil equiva.lency payments" to the
                                 " cities" to the extent that the " Incremental AMOCO Gas" delivered L
          --                    to the " cities" in emy month is not :at least 72.82 cents 'less expensive per MMBTU than the " cities" avers.ge cost of oil                                                                                    '

F deliveries in that month until the 20.6 million MMBTUS of [ " Incremental AMOCO Gas" are delivered to the " cities", such payments to be made at scheduled times within the four-year

        ;                       period. Incremental gas valued at $503,040 under the agreement and cash of $1,646,519 has been received by GRU
     --                         through September 30, 1981. GRU's remaining share of payments
         ,.                      to be received by July ', 1982, (in either " Incremental AMOCO

{ Gas" or cash) is $667,441. l (continued) c:

                                                                                                                .            "9 * " *
                    - , - -                                                                                                                                                      a        -+

           .                                               CITY OF GAINESVILLE, FIDRIDA COMBINED UTILITY FUNDS - GAINESVILLE REGIONAL UTILITIES NOTES TO FINANCIAL STATEMENTS

(' September 30, 1981 I.

3. Utility System Revenue Bonds (continued)

Account purpose Reserve and Contingency To accumulate funds for Account contingencies in an amount

       -r                                                                             periodica.117 determined by the

[ consulting engineer of record.

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            -                   Capitalized Interest                                  To receive deposits from bond Account                                           proceeds or the Improvement Account amounting to interest
                                                                  - -- -- pa7ments-due on bonds for a
                                                                  . . -. specidied..per.iod--during.                           -
                                                                        ----- construction of a project not to exceed eighteen months following the date of commercial operation
                                                                   .    .-L  :nrot rthesu.c;ie.ct.- = Transfers are
             ~

made from this account to the Interest Account as interest j- --

                                                                        -- ---payments come due.                        -                         -

i .

                   ..        ...Ba. lance = 4 " *he a bmre_ des cri had =ecann+= wh*rh a 4 included..in                                         _
    .~                         retained earnings at September 30, are as follows:.
            '~

___ 1,,981 1980 f. Interest Account Principal Account S 9,456,448

                                                                                                                    $ 7,767,489 Sinking Fund Acount                                                  19,607,495           8,658,796 i                     Reserve Account                                                       21,854,650         17,394,630 L                     Subordinated Bond Account                                              1,655,904               480,937 Reserve and Contingency Account                                                             686,042               624,265
    !.E L                     Capitalized Interest Account                                           6,625,236         12,156,055 Less Amounts Appropriated For r                         Current Interest Payable                                          (9,769,844)         (8,461,557)

,L iL $50,115,931 S38,620,615 l l l In addition to the above described accounts, the ordinances and l " indenture required the establishment of a Revenue Fund to collect revenues and pay expenses and an Improvement Account wnich is to L (continued) 7 _ . _ _ _ ._ ~. . _ _ . . _ _ _

l n. i. CITY OF GAINESVILLE, FLORIDA COMBINED UTILITY FUNDS - GAINESVILLE REGIONAL UTILITIES { NOTES TO FINANCIAL STATEMENTS rr September 30, 1981 1 1 1 l

   ~

Settlements with Fuel Suppliers (continued) I

   .               2.

In December, 1977, the GRU resolved to pass through to consumers the damages portion of the settlements by reducing fuel adjustment charges subsequent to collections by the GRU from the fuel suppliers; therefore, $1,172,848 at September 30, 1981, and r $1,637,973 at September 30, 1980, are included in Other Deferred i Credits and will be taken into income as fuel adjustment revenues at the times and in the amounts such charges are reduced to the

     , , -              consumers.

3. Utility System Revenue Bonds

    '--f        -+yedstir            11rco ; b;fere- depr;;ictic; plu: c.;-r-te.i; interest-income - ----- -
     ," L .             is pledged on Utilities System Revenue Bonds. The' revenue bond ordinance and trust indenture required the establishinent of the
            ~

following debt service accounts: l' Account Purpose

       ~

Interest Account To accumulate sufficient funds to pa7 7tti- interest coming due on the bonds outstanding after allowing

           ~
                                                                     --       credit for-any -amounts to be transferred from the Capitalized

[ Interest account and the Sinking

     @                                                                      . Fund account.

Principal Account To accumulate sufficient funds to pay principal coming due on serial

         ,                                                                    bonds.

f~ L- Sinking Fund Account To accumulate funds for payment of amortization installments coming g due on term bonds. I~ i Reserve Account To accumulate an amount equal to r the maximum Eggregate bond service i requirement coming due on all

    -                                                                         bonds outstanding during the current or any ensuing fiscal

! I; year.  ; 1 t Subordinated Bond To accumulate funds sufficient to [ Account pay the debt service requirements t on any subordinated bonds.

                                                                              =

(continued)

                                                                                                                               ~                  ~

f_ _ _. . _

                     - -          3.      .. . _ . .                 - - .            ..        ._                                   .-          .-..-..L            - ,

l r

                                                        ~~

i ' CITY OF GAINESVILLE, FIDRIDA i e COMBINED . UTILITY FUNDS - GAINESVILLE REGIONAL UTILITIES NOTES TO FINANCIAL SIATEMENTS

        '"                                                                     September 30, 1981 i

I. , c l 3. Utility System Revenue Bonds (continued) r- - - be used -to .make capi-ta,1. improvements to the Utility System. GRU f' is in compliance at September 30, 1981, with transfer requirements to the Improvement Account. [ The ordinances and indenture provide that the GRU's gross bond

         '                       service requirecent may be reduced by interest income with respect to speci.fied Federa.1. securities that the GRU is T " - nnconditionallytmeitgated to seguire at T 1naximumwchase price

[. under contract, and by amounts of deposits in the Capitalized

              ... . . Int =vant Aren"nt "av enm< 4 # 4 ad_ ban d e ..h af Raptember.3D,.1981,                                                                      .
           --                    future gross and net debt service requirements including interest
                           . . at. 5.5% to. 9.3% for Utilities System Revenue Bonds are (000 omitted):

Capitalized

                                                                                 .._.-_. Contributions                  _..._ Interest and J            -                   Year                                                           ~ to Gioss InvestnEnt              Net
                      - - --Ending                                                  - - ---Sinkin g Fund-              Debt --- Account-             Debt September 30,               Principal             Interest         Account (1)              Service Revenues Service ,,
            ~
;-                               1982                  5       -
                                                                             $16',964       '

3 5,210 ' $22,174 5 6,240 315,934 l 1983 -- 19,260 1,959 21,219 2,130 19,089 i 1984 - 19,260 3 , 0 21, 22,282 2,322 19,960 1985 - 19,260 3,679 22,939 2,596 20,343 I 1986 - 19,260 ~~~ 4,973 -~~24,233 2,940 21,293 1987 19,260 5,546 .24,806 3,383 21,423 [ - 19,260 6,034 25,294 3,872 21,422

- L 1988 -  ;

i -- 1989 - 19,260 5,915 25,175 4,423 20,752 l 1990 3,460 19,260 389 23,109 4,786 18,323 3' 1991 3,680 19,034 22,714 4,803 17,911 l- 1992 3,925 18,793 22,718 4,803 17,915 j p 1993 4,180 18,530 22,710 4,803 17,907

   *                           1994                    4,460                   18,249                              22,709        4,803            17,906

_' 1995 1996 4,765 5,080 17,945 17,620 22.,710 22,700 4,803 4,803 17,907 17,897

   , .I.                         1997                     5,430                  17,270                              22,700        4,803            17,897 l;         t.                     1998                     5,810                  16,896                              22,706        4,803            17,903 1999                     6,215                   16,485                              22,700       4,803            17,897 i

t N 1 r (continued) u

                                                                                                                                        ' - " - ~         ~-

,, , , . _ _ . . .~.--_ --

l

              -~ -                 -- -                    --

CITY OF GAINESVTLLE, FLORIDA

                             '~ ~ ~ COMBINED UTILITY FUNDS"- GAINESVILLE REGIONAL UTILITIES
    . - -                                                           t          NOTES TO FINANCIAL STATEMENTS September 30, 1981 e

i L 3. Utility System Revenue Bonds (continued) o" Capitalized L Contributions Interest and Year to Gross Investment Net

        .--                  -Ending                                            .                                m nH ng Fund. _ Debt. .                           Account __ Debt i                 September 30,                       principal                      Interest Account (1) Service Revenues Service

__ 2000 S 6,655 516,044 $22,699 5 4,803 $17,896 -

  'i                             2001                                       7,125                 15,565                                          22,690             4,803                      17,887 L.                       2002                                       7,645                 15,043                                          22,688             4,803                      17,885 2003                                      8,195                 14,483                                          22,678             4,803                      17,875
   .                             2004 -.             m . - 8 , 7 95. .. .-13 ,-874- -.                                   --     ..                22,.669. ..        4.,803.                    17,866

{; .. .....- 2005 9,440 13,220 22,660 4,803 17,857 2006 10,135 12,518 22,653 4,803 17,850 2007 10,880 11,754 22,634 4,803 17,831 c

              --- - ~200 8( 2)
                                                              -~~~b*6,'59tT ~~~-~10 , 9 27~~ ----- -                                              77 SI2            597693            ^ -'17,819~
         ~

2009 , 11,345 6,459 17,804 17,304 2010 12,210 5,575 17,785 17,785 I. 2011 13,145 4,621 1",766 17,766 [ _ . .. . * " 2012 - -

                                                                    "14,160 - - 3,593- - -                                  -
                                                                                                                                              --17,753-               --
                                                                                                                                                                                        - - - 17,753--

2013 - 15,250 -. 2,486 .. 17,736 . .. 17,736 16,425 1,289 17,714 17,714

     -l'                        .2014      , , ,

Total principal 265,000 .

                       ..Less unamortized discount                                     1,756 Net long-term
                        . debt             ._. . S263,244

[ (1) Required for the purchase of Federal securities under a

   -                                                          forward supply contrs.ct with Citibank, N. A. , of New York
            -                                                 whereby the City agreed to purch.tse such securities from Citibank using the proceeds of amortization installments paid to the Sinking Fund.

q (2) Assumes partial optional redemption of 2014 term bonds in .; ,L. 2008, and that early call provisions of Federal l - securities and term bonds are not exercised.

  'I'                                          Included in current liabilities is $40,000,000 of Bond L. -                                       Anticipation Notes which were issued October 1, 1980 and bear interest at a per annum rate of 7".. The Notes mature April 1, 1982 and are not callable prior to that time. Such notes are secured by a lien on net revenues of the utility funds , junior a.nd subordinated to the lien by Utilities Systems Revenue Bonds, and a first lien on proceeds of future sales of bonds.

GRU expects to refinance the Notes prior to their maturity. (continued)

               , . - . -                g- ,   g.,             ge e a.ny .g yw    ,.                      g        e            -i.,

n 4 - f -, .

__ ~ CITY OF GAINESVILLE, FLORIDA

                                 .. COMBINED. UTILITY FUNDS - GAINESVILLE REGIONAL UTILITIES
           '-                                                              NOTES TO FINANCIAL STATEMENTS September 30, 1981
  -r 1._             4. Utility Deposits c.-....               .Normally, assats-restr.ic.ted. .f or -pa.yment M P414*y deposi,ts equal                        - -

I the liability for such deposits. During 1979, hovaver, the GRU used a portion of such e.ssets for construction of utility plant. Therefore, at September 30, 1981 and 1980, the restricted assets

  ,i                              f or utility deposits do not equal the utilit'j deposits payable.

i_

5...Interfund Direct Utility Billings

   -T-L                       Included in revenues are the following interfund direct billings
                       ._      _ for. utility. services:
                                                                                       .    . . - .             __ _        1981 _ . _ .        1980
           '-                         Sales of Electricity                                                             31,405,528        S1,190,769 Sales of Water                                                                        112,151             123,540 Sewer. Service Charges                                                                 20,231                  3,178
'; -f                                                                                                                                                                                _

1-

   "                                                                                                   - --- SI , 537 , 910              34r317,487
                      - -- --- -Tet,a-1--Revenues                              -
     -i           '
           ;                       Included in expenses are ,the following interfund direct billings for utility services:

1981 1980

     ]" .   ~

Expenses:

                                                                                                                       $ 281,502 S 279,200
     -                                Electric Fund Water Fund                                                                            614,646'             471,413 Sewer Fund                                                                            641,762              566,874
     ~l._
     ~

Total Expenses $1,537,910 S1,317,487 r ,[_. 6. Retirement Plans i. The City sponsors and administers two retirement plans that

    )                               include GRU employees together with other City employees.

, _. The Employees Pension Plan (" Employees Plan"), a defined benefit,  !

   *i                              primarily non-contributory pension plan, covers all employees of                                                                                     l l-the GRU except certain managerial personnel who participate only in'tne Deferred Compensation Plan.

a

              ..                                                                                                                                                                         l (continued)                                l l
             ~                                                                                                                                                                           l
    ~~

_ _ , _ _ _l

              - . - . . .---                                             ..                       .           .                .n.-......-.

t CITY OF.GAINESVILLE, FLORIDA _ COMBINED UTILITY FUNDS - GAINESVILLE REGIONAL UTILITIES E i. NOTES TO 7INANCIAL STATEMENTS

    - r-                                                          September 30, 1981 b..

6. Retirement plans (continued)

Deferred Compensation Trust Fund - As of January 1, 1979,

       ' I'~                    employees in certain management positions were eligible to
           !                    participate in a defined contribution deferred compensation plan managed by the International City Management Association f                           Retirement Corporation 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.~~ Total deferred comp ~ensation cost for the fiscal i

i rears ended SeptembiF YO', 1981 and 1980',' fcir the Utility funds L was approximately $20,000 and $21,000, respectively.

        ~~
                       -     - The City--accounts fer. and.-funds- the. costs _o" .t.he Employees                                                          _.

plan as they accrue. Such costs are based on contribution rates determined by the most recent actuarial valuation. The total

     ,--                        contributions by the City, including amortization of prior ~

, j_ p.- . ma ey L.a ecate. -ford;he year ended- September .-3.0.,_1911--and-19&Q- : .u- .:... . ._-

     '"                        were $774,260 and $1,115,000, respectively. Of these totals, appr rimately $412,000 and $416,000 was contributed by Utility
       -r.

3t - . Funds in.1981.and 1980 -respectively~ .- 6

         . . . . . . _. .The. following .information .for__.the.. Employees _ plan. .is _ as of                                                .-        .

P September 30, 1980, the date of the latest actuarial valuation. I

       ~'

Actuarial present value of

         .,-                       accumulated plan benefits - vested                                             $9,333,483
                                               - non vested                                         445,790 t
                                                                                                 $9,779,273 ll-l l
          ]7 -

Net assets available for I

• benefits $13,379,968 l La Weighted average assumed ra.te of

     ,                              return used to determine the                                                                                              '
 .j" m                             actuarial present value of plan benefits                                                                  g i     I
            -~

F

1. -

(continued) ln 1 - - .

                                                                        -__..--7=_--.                               ,=. _                   ,

  . ~

CITY OF GAINESVILLE, FLORIDA ,,p COMBINED UTILITY FUNDS - GAINESVILLE REGIONAL UTILITIES NOTES TO FINANCIAL STATEMENTS -1 September 30, 1981 lJ

 .. F l i

7. Commitments and Contingencies

~ At September 30, 1981, the GRU was committed under various lf- ' construction contracts with remainin'g balances approximating 39,600,000 of which approximately $1,100,000 is included in I liabilities payable from restricted funds in the accompanying - L combined balance sheet. r . ... Purchase. Commitments Ii As described in Note 3, GRU has contracted to purchase Federal !" securities of approxima.tely $36,727,000 from its sinking fun -

          -                   account. on a scheduled basis through 1989.

' - Contingencies . GRU has entered into an agreement with seven other Florida I y municipalities who operate oil / gas-fired electric generating

m. f acilities and who purchase natural gas to operate such

{ . facilities f rom. Florida Gas Transmission. Company (FGT) . The

  ~p                          cities are collectively resisting the imposition of a new "end-use" gas curtailment plan proposed by the Federal Energy l-                   Regulatory Commission on the FGT pipeline system. As part of the
          ,.                  agreement, the cities have adopted a policy of internal ri                            compensation between themselves that amounts to a voluntary gas curtailment plan. The proposed "end-use" curtailment plan would

['- not uniformly affect all of the cities since smaller cities

          !"                  would receive a higher priority f or allocation of available gas than larger cities. Therefore, to encourage unity in resisting
   ..                          such a curtailment plan, the larger cities agreed to voluntarily compensate the scaller cities when the small cities receive less
 '!                            gas currently than they would have received if they had allowed

[, ~ the "end-use" plan to go into effect. Gas deliveries and any resulting internal compensation are monitored and calculated by

 ,                             an independent consulting engineer. It is anticipated that GRU l
                -              will make cash payments to smaller cities under the agreement,
 "                             and such payments would be reflected as a cost of fuel and                                                                                                       .
           ~

recovered through fuel adjustment charges. The total amount l l u. ultimately to be paid under the terms of the agreement depends on L. future gas deliveries by FGT and is not determinable.

           *.e t

I e se (continued)

i. L.

 ^

i.* CITY OF GAINESVILLE, FIDRIDA COMBINED UTILITY FUNDS - GAINESVILLE REGIONAL UTILITIES

    .7

L NOTES TO FIN.iNC:'AL STATEMENTS 1

    . .g                                                                           September 30, 1981
    '     U                                                                                (Concluded)

TU

   ' L:               8.       Extraordinary Item - Settlement of Litigation r           - - During '1981*, a serttlument waar reached-betwee'n GRU and Florida b                    Power and Light Company ("FPL") on two pending antitrust litigation cases filed in prior years. Significant provisions of this final settlement agreement are as follows:

fq I

a. ) GRU received $5,000,000 in cash from FpL. GRU agreed to pay approximately 31,549,400 in legal and other expen'ses rerated to settlement of the cases. As a

                ,                          result of these payments, GRU and FpL entered into stipulations dismissing the antitrust cases and                                                                            *
           ~~

r . . - Agreeing.not.to.11.tigate_certain.other matters.

  "        l.

b) FPL agreed to establish a 53,000,000 transmission

           ,-                              service credit (credit) for GRU. This credit is

[. --. assignable by .GRTT m m4 chall- ha ap 11.iani nFainst. billings

           "                               from FPL to GRU or its assignee (s) for transmission
                                       - service. In addition', at its option, FPL may settle l

I,

                            . . . ..theJa== 4 "4 ng. balance, oL the. credit.by cash payment or

_.I in any other mutually. agreed form. Interest on the remaining credit balance will accrue qua.rterly at the 13 - week U.S. Treasury Bill rate and be added to the remaining credit balance.

   ){ L~

c) GRU and FpL agree to interconnect their respective I systems and share the costs of such itterconnections L- equally, unless otherwise agreed to. The credit referred to in b above may also be applied against i, GRU's share of the interconnection cost. . m

     ~

Included in the state =ent of revenue and expenses in 1981 is an extraordinary credit of $3,450,600 which represents the

            ~
                                $5,000,000 cash settlement less $1,549,400 legal and other expenses paid. The $3,000,000 credit plus interest accrued
               -                through September 30, 1981 has been recorded as a miscellaneous deferred debit with an offsetting deferred credit because GRU I"
     --                         intends to use the credit as a reduction of their snare of the interconnection costs as provided in e above.
            %e.
     ~_ _____                  _. _          .m_._... . ... _ . . , . ,             _         . . . . -.---.--,;_.    .__--7--,,--+--,7,.          ,_            _ _ _ , ,

e -em~ ..--me, ww- e *- pmw. e w a m---s- m -- -ewa - O

                                     ,                                                                                                              'W O                                                                                                                                                         =
                                                                                                                                          ~

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    =

s.e t r e

      ~

SUPPLEMENTARY INFORMATION - ,a

    \.

o e

   '.4

[

t. . ., *

         =
    'a e .

h ae "49

   % ee e

S w e W

                     , .           o   y     e~**                   M**-             *--W"         * "               * * *            * * *
                           --w-gw-          wm-              =             * --             e                                                  - e.   -

5 .

            -w-.                       *
                               .*=se        4..                                                             _e             m. .

4 CITT CF GAINES77M ?, FIfPJDA -- t  : CC6dBINED UTILITT FUNDS - GAINES7II.lE REGICNAL UTILITIES STATEA2rrS CF NET BE7E21UES U X'CRDANCE TIIH 320 GDINANCES _ Years Ended Septamnar 30,1981,1980,1973,1978, and 19T7 Gross anvenues: ~1 1981 1980 t fales of Electricity $54,219,805 $46,557,849 l i Other Electric Operating Havenue 1,395,168 1,214,010 , Interest Inccans - Electric Fund (Note 2) 2,830,183 1,426,346 . Settlement of Litigatica. 5,000,000 - I Gross Electric Revenues _ 63,445,156 49,198,205 y Sales of Water 4,698,829 4,290,546 l Other Water Operating Hevenue (Note 1) 1,004,773 1,048,674 Interest Incesa - Water Fund (Note 2) 288,538 356,400 - Gross Water Bevenues- 6,022,140 5,695,620 l Sewer Service C2arges 4,691,033 4,576,134 _ Other Sewer Qwrating Revenue (Note 1) 863,346 607,863 Interest Ince== - Sewer Fund (Note 2) 355,636 212,401 - Gross Sewer Revenues 5,910,015 5,396,398 _ Total Gross Pavenues 75,377,311 60,290,223 Operating Expenses Before Depreciaticn and Amortization: Electric Fund: Operations and Maintenance 30,376,C53 26,009,166 -. } A4=4 niatra,tive and General (Note 3) 5,015,152 3,747,490 ' Settlement of Litigation - Iagal E&w 1,549,400 - Electric Fund Expenses 36,940,605 29,756,656 7ater Fund: Operatices and Maintanance 1,644,641 1,453,048 _Wnietive and General (Note 3) 1,141,486 , 1,241,266 Water Fund Expenses 2,786,127 2,694,314 Sewer Fund: Operations and Maintananca 1,731,029 1,532,969 ' w ni e tive and General (Note 3) 1,382,192 1,224,965 Sewer Fund Frmanes 3,113.221 2,757,934 ' Total Operating Trmn=!s Befcre Depreciation and Waticn (42,839,953) g ,2C8,904) j , Net Revenues in Accordance with Bend Ordinances: j  ! Electric 26,504,551 19,441,549 Water 3,236,013 3,001,3C6 , Sewer 2,796,794 2,638,464 i Total Net Favenues in Acccrdance with ' Band OrrHnances $32,537,358 S25,C81,319 Debt Service $15,111,590 $13,014,202 Coverage Patio 2.15 1.93 See Notes On Following Page.

                                                          -              _m-                     --                 -

                     - .      - .-~          _ _ - _       _ . . -     _ _ - - . _ _                   _ _ _ _ _ _ _ . __         . _ _                ._ __

l 1. 0 i '_ . 1M9 1M8 1977

                                     $34,318,322 333,386,372 $31,003,244 r
       'L 1,104,021 1,377,676 985,028 917,608 1,210,463 560,478

. '.. . p i 36,800,019 35,289,008 32,774,185 4,151,344 4,236,227 3,900,255 er - 933,316 1,017,303 1,085,583 234,025 135,544 156,459 {g 5,318,685 5,389,074 5,142,297

      ~[ L-4,233,476 629,771 4,056,051 520,789 3,000,516 510,151 177,730                 145,197                105,148                                                                           <

F F i 5,040,977 4,722,037 3,615,815

  ,      l.
                               .      .47,159,681 .45,400,119 .41,532,297
  ..r~

{' 17,134,128 16,173,510 -16,479,032 3,599,122 3,596,485 2,856,682 r 20,733,250 19,769,995 19,335,714 _r 1,416,268 1,296,614 , 1,492,901

     ~-    .

1,229,997 1,240,303 1,145,904

      ' I"                                 2,646,265                2,536,917              2,638,805 1,423,068                1,290,687              1,010,760 1,040,079                1,039,431                 955,454
           '~'
   "                                       2,463,147                2,330,118              1,966,214                                                                           ,
   .                                                                                                                                                                           l

[_. (25,842,662) (24,637,030) (23,940,733) l 16,066,769 15,519,013 13,438,471 6 2,672,420 2,852,157 2,503,492 L~ 2,577,830 2,391,919 1,649,601 321,317,019 S20,763,089 S17,591,564

                                       $11,995,160 $10,925,411 $ 9,343,235 1.78                    1.90                  1.88 W
     ~__m.___               ..
                                     ._ -_        ._                                         __ _ . :. x - -         - - -

      .. ..            . - - . . . - -           ._               . . . . ..        .                                       .   = - . . ..
         ~

2. CITI & GArm:svul.E FILRIDA CDEINED UTILITY Ft:NDS - GAINES7IIl2 REDICNAL UfILITIES SPAm8 MIS & NET RE7E!ES IN AtTranANCE WIIH BC2D ORDINANCES Piscal Years Ended September 30, 1981, 1980, 1979, 1978, and 1977 (Concluded) u

         . - --(3:)--Other-uter and                       -- %% 4=vwunes include certain ocmnection L                          charges as zevenues in accordance with band oriinanm, which is not in accordance with generally accepted accounting principles.

dI (2) Interest income does not include 38,614,399 in 1981, 36,436,485 in 1980, I -- $3,392,837 in 1979, $1,071,871 in 1978, and $557,793 in 1977, for interest earned on investments in the constructim trust funds and in certain debt F [ service accounts which can m17 ta used for Instricted purposes in

         ! ..                      accordance with bcxxi arriinn                 ,
  ,,7             _.,_(3)_. N==r_for_an.4-w of.utili.ty_ plant.w t a :a= are.=-aad in. full                                               .
  ..t                  .           above .in the period incurred in accordanz with an interpretaticn of bond
    ' ' ~

arriin=e== by the City's legal em=1. These charges are reflected cn the

          ,..                      fi nne4 =1 statements which are in accordance with generally accepted

{ . .___.__.__ a-nW p4 pl r ^# red AaMts-and-aredng =tortized over 10

      ..'-                         years.

7' t

     ~ r -'

i l. W e L-  ;

u. .

M ii L" l .. ., I W

l . _

         ~

3. F CITI 0? GAue.svul.E, FIG.IDA

       '~

SIATDENIS T ET E7EES IN ACCDRDANG WITH IGD CRDINANCS

   ,. -                                                                               vrmTC UIILITY FLN I

1 L Years Ended September 30,1981 and 1980 e-

         ~

1981 1980 Opers. ting Bevenues:

       !~              Sales of Electricity:

Residential Sales $13,300,674 $12,275,966 '

  .,..,_                 t- _. . . = 1 1 .nd t'-1                      Power                                            .     .. . 13,429,265. .12,509,950
    ,l                   Fuel Adjustment                                                                                                     22,291,085         18,247,162 1'                      Street and T a ffic Lighting                                                                                              655,456            4G6,048 Bulk Power Sains                                                                                                       4,543,325        3,058,723 f!

a-Total Sales c#. Electricity 54,219,805 46,557,849

         .,            Other Operating Bovenues:
'j                                                                                                                                                                     92,323 kintananca of Traffic and Street Lighting                                                                      ~~ 97,099 ' ~
          -              Service Charges                                                                                                           467,874            396,254
               -- -- -UtiliLi Sim. barges                                                                                                    - - 134,676--            636,724
   ; f ~--. ..-Pole-Bentals                                                                                     . _ _ . _                           92,956 ..,_ 86,994.         .. .

L-- Miscelhnaous - 2,563 1,715 Settlenent of Litigaticn 5,000,000 - Total Other Operating Bevenues 6,395,168 1,214,010 4 , L.i Total Operating Revenues e0,614,973 47,771,859 2-[ -.. Operating Expenses Before Depreciaticn a.nd Arortization:

     ,,-               Openticos and Maintananca:                                          .

___ ._ Power.Pmtictiert .28,836,210. 24,712,931

          ~

Tr=n d % .n 274,528 249,208

          -              DLstribution                                                                                                           1,265,317        1,047,027
              . . ._ _._ Set +1 ===n+            -

M T 4 ti e*+4 em -T-1 E& . .. 1,549,400 - Total Operations and Maintenance _31,925,453 26,009,166 l ([~ L -- kim4n4=trative and General:

    , c'                  Chstemers' Accounts                                                                                                      641,410            698,718 j[                   Administrative and General                                                                                             4,373,742        3,048,772
    ~

Total Admin 4=trative and General 5,015,152 3,747,490 (Total Operating Frnanaam Befcre Depreciation

  -ly )'.                            and Anortizaticx1)                                                                                     (36,940,605) (29,756,656) 23,674,368        18,015,203 iL

[' Operating inmm Before Depreciaticn and Anortization Interest Incare 2,830,183 1,426,346 L r Net Revenues in Accordance with Ebnd Ordinances $26,504,551 $19,441,549 L 6* L -- - -

   ~                                                                                     ..

                     ..             . . . . .                        . _ . .                . _ . . _              . _ _ . _ . . ~                        _ _ _        ._
                                                                                   .                         t 4.
         -                                                                       CITY & GAINES7ILE, FIMIDA L

STATNirS TM IE7D,~JES IN ACCIRDANG WI"3 H2iD CBDINANCES WATER UTILIIT FUND r~ l' t Years Ended Septantm- 30, 1981 and 1980 i

        !~

1981 1960 [ operating Bevenues: .,,

  .e                      atles of Water:
 -F                         General Custmars                                                                                                                     $4,000,587 $3,862,377 '

Fin Protecticn 541,798 356,855 Electric Plant 76,444 71,314

    'T                    Total Sales of Water.                                                                                                                    4,698,829 ,4,290,54Cf i;

Other Operating Bevenues: fb Utility Sm2arges 92,963 81,131

   '                                                                                                                                                                        420                   5,610 t>                   Miscellanmens Capital Facilities Qarges (Notes 1 cad 2 Below)                                                                                         533,053                    337,600 T;,                       Fwui. Fmtzge,-thrter-Instr 11rtictr; and Otber- -- -                                                                      -                    -    -                 -

Q:enection Charges (Note 2 Below) 408,337 624,333

                                                                                                                                                  ~~-~~

l .r Total'Other Operating Bevenum 1,034,773 1,048,674 ' T'**1 *4"! W M8 .. . . . _ . _ .. _ 5 733 M ~._5,339,220...

         -             operating h-a=== Before Depreciaticn and Amortization:

h ei rwie, and W4ntananem- ~

                           " Source of Supply 'rn-n==                                                                                          *

• 5,218 7,213 b'*-- . - -- 634,884- - 520,688 g g % .n ._

,-? Water T2satment hv s 715,177 686,273 4 L Tranani==1cxt and DistriktW 7& i \ 289,362 238,874

          ;- __. Tetal Operaticos-and-Maintanant* -                                                    --      ,- s - - - - - ----                                 13644,641        -1,453,048

! k Ad=fniatrative and General: !~ - --Qstmars' -Accounts -

                                                                                                                                                       --          -.232,150                    322,175
         '-                   Adminiatrative and General                                                                                                              909,336                   919,091 lL :'                                      .

Total Ad=4n4=trative and General 1,141,486 1,241,266

    ,I                              (Total Operating 9=== Before Depreciaticn

.;L and Anortization) (2,786,127) (2,694,314) (-

         "              Operating Inccane Before Ikpreciaticn and Amartizaticn                                                                                     2,947,475               2,644,906

.I, Interest Income 288,538 356,400 L '_ -Net Bovenues in Accordance with Btnd Orriinam= S3,236,013 S3.001,306 l h' ,* Note 1 - Funds received by the City as water capital fariHties charges may be used

         *~'

coly for capital 1,wm =t per*=4 ning to the water system or for debt service requiruntnts in connecticn with such capital 1,w-i.. L. Note 2 - Capital faciMties, front footage, meter instalhtion, and other connection

          "-                              charges are revenues in accordance with bond ordinances, but not in acccedance with generally accepted accounting principles.

s. t *

                            -             . . - -            . -,: _         ~ .       . , . ., .a         z     ;
                                                                                                                                                  ._: ;                        ;_ ~.                .. _    _

l ( UTILITIES COMMISSION ( CITY OF NEW SMYRNA BEACH, FLORIDA FINANCI AL STATEMENTS [ September- 30, 1981 [ 1 OFFICI ALS { Dennis D. Higginbotham, Chairman [ Richard M. Canfield, Vice-Chairman Paul D. Roche, Secretary-Treasurer Barbara L. Bidwell, Assistant Secretary-Treasurer - ( James A. Pence, Commissioner [ DIRECTOR OF UTILITIES CONTROLLER B. W. Wait,111, P.E. R. Ronald Hagen [ ATTORNEY John F. Bolt, Esquire [ [ [ INDEPENDENT AUDITORS [ Firm of Brent Millikan, Certified Public Accountants, P. A. [ [

                                             -i-(    ..   . ..    .

_ _ - - - - - - - - - - - - - - - - - - - - _ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ~ - - - - - - - - I L UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA TABLE OF CONTENTS I L REFERENCE PAGE Certificate of Conformance ................................. iii L CENER AL PURPOSE FIN ANCI AL STATEMENTS A u d i t o r s ' R e po r t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 ( BalanceSheet........................................... Statement 1 2-3 Statement of Revenues, Expenses and Changes in R et ai n ed Ea r ni n gs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Statement 2 14 [ Statement of Changes in Financial Position .. . . . . . . . . . . . . . Statement 3 5-6 L Notes to the Financial Statements ....................... 7-18 NOTE FOR ADDITIONAL INFORMATION [ The Utilities Commission, City of New Smyrna Beach, Florida, has prepar ed a t comprehensive annual financial report. This report contains detailed information whic.h is not found in the general purpose financial statements. The comprehensive annual financial report may be obtained by writing the Utilities Commission at f Post Office Box 519, 120 Sams Avenue, New Smyrna Beach, Florida 32069. { l

                                                                                                                                                                                                                                   -ii-

[ i UTILITIES COMMISSION { CITY OF NEW SMYRNA BEACH, FLORIDA CERTIFICATE OF CONFORMANCE AWARDED SEPTEMBER 30, 1980 l 1  ! A Certificate of Conformance is awarded by the Municipal i Finance Officers Association of the United States and Canada only to the governmental units whose financial report is judged to conform substantially to the high standards for financial reporting established by the Association. These standards are contained in publications of the National Council on Governmental Accounting. It is management's belief that the financial statements contained herein continue to conform with these standards. I I I I I I I I I

I I Cer.. .:1::1Ca :e g 0:- lI Con:!ormance in .~1DanCla. I Repor:ing Presented to ig Utiities Commission, City of New Smyrna Beaca, Eorida I Forits Comprehensive Annual I Financial Report for the Fiscal Year Ended September 30,1980 A Certificate of Conformance in Financial Reporting is presented by the MunicipalFinance Officers Association of the United States and Canada to governmental units and public employee retirement systems whose comprehensive annual financial reports (CAFR's) are judg2d to substantially conform to program standards. I #52% y g g A ic nt lL Yuf ,! l , .a / I Executive Director j g -iii-b

a GLOSSARY OF TERMINOLOGY FOR STATEMENT 1 THROUGH STATEMENT 3 GENERAL PURFOSE FINANCIAL STATEMENTS These basic financial statements provide a summary overview of the financial position as well as the operating results of the Utilities Commission. l l I I

E E E AUDITORS' REPORT [ [ [

'=='==q I

1 l

                                                                                                                 ._ 77 l

[ Confa'.A/4< .'du aat,ab, .}.W MEMBERS OF 205 MAGNOttA SD LrT POST OFF CE BOX 1226 NEW SMf RNA bE A' H. Ft GP DA 32069 TELEPHONE (904) 4271333 PRIVATE COMPAN.ES FRACT'CE SECT;ON AMEHILAN 6NSTITUTE OF CPA S FLORIDA INSTITUTE OF C A S [ [ Utilities Commission L City of New Smyrna Beach New Smyrna Beach, Florida AUDITORS' REPORT [ We have examined the balance sheets of the Utilities Commission, City of New Smyrna Beach, Florida as of September 30, 1981, and 1980, and the related statements of revenues, expenses and chane as in retained earnings, and changes in financial position for the years then ended. Our examinations were made in accordance with generally accepted auditing [ standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. [ In our opinion, the financial statements referred to above present fair.'if the financial position of the Utilities Commission, City of New Smyrna Beach, Florida at September 30, 1981, and 1980, and the results of its [ operations and the changes in its financial position for the years then ended, in conformity with generally accepted accounting principles which have been applied on a consistent basis.

                                                                                    ?
                                                                        /

h New Smyrna Beach, Florida February 12, 1982 [ [

UTILITIES COMMISSION Statement 1 CITY OF NEW SMYRNA BEACH, F LORIDA BALANCE SHEETS September 30, 1981 and 1980 ASSETS 1981 1980 UTILITY PLANT:(Note 1) in Service: Electric system $20,505,788 $18,881,714 Water system 6,474,029 6,628,459 Pollution control system 4,301,497 4,797,209

                                                              $31,281,314   $30,307,382 Less: Allowance for depreciation and amortization             10,481,736     9,694,090 20,799,578    20,613,292   E Construction work in progress                                  6,848,554     2,761,165 E

TOTAL UTILITY PLANT $27,648,132 $23,374,457 RESTRICTED ASSETS: (Note 3) Debt Service Funds $ 2,192,090 $ 2, 8 7,552 Renewal and Replacement Funds 282,838 176,467 Construction Funds 3,384,921 7,414,024 g Customers' Deposits 645,912 365,430 3 TOTAL RESTRICTED ASSETS $ 6,508,761 $10,123,473 CURRENT ASSETS: Cash $ 559,037 $ 450,583 Accounts receivable (net of allowance of $92,219 and $39,000 for doubtful accounts) 887,895 1,069,403 Unbilled accounts receivable (Note 1) 655,747 501,024 Due from other governments 538,979 381,821 Notes receivable 3,996 3,057 Inventory of materials and supplies (Note 1) 929,545 871,235 Prepaid expenses and other assets 67,889 74,063 Accrued interest receivable 23,643 - Assessments receivable 22,171 15,329 TOTAL CURRENT ASSETS $ 3,688,902 $ 3,366,515 DEFERRED CHARCES AND OTHER ASSETS: Unamortized debt expense (Note 1, $ 333,836 $ 333,836 Deferred charges and other assets 46,570 82,035 Loan to the City library fund 16,000 20,000 Notes receivable - noncurrent 8,133 - Assessments receivable - noncurrent 72,965 2,173 TOTAL DEFERRED CHARCES l AND OTHER ASSETS $ 477,504 $ 438,044 E l TOTAL ASSETS $38,323,299 $37,302,489 1 The accompanying notes arc on integral part of the financial statements. [ - LIABILITIES AND FUND EQUITY 1981 1980 FUND EQUITY: Retained Earnings: I Reserved for net restricted assets (Note 1 f, 3) $ 4,772,022 $ 8,713,518 Unreserved 5,617,101 742,102 TOTAL FUND EQUITY $10,389,123 $ 9,455,620 LONG-TERM DEBT: Revenue certificates payable (Note 2) $25,810,000 $25,810,000 I Less: Unamortized debt discount

                                                       $25,255,085 554,915                   554,915
                                                                                                                     $25,255,085 Deferred liabilitics                                                                                           -

35,625 TOTAL LONC-TERM DEBT $25,255,085 $25,290,710 CURRENT LIABILITIES: Overnight cash overdrafts $

                                                                                                                     $    354,605 I    Accounts payable Accrued liabilities 641,374 193,822 585,857 90,217 Due to other governments                                                                     107,156                 115,525
                                                       $                                         942,352             $ 1,146,204 CURRENT LI ABILITIES (Payable from restricted assets):

I Accounts payable Customers' Deposits

                                                       $ 1,147,324 589,415
                                                                                                                     $    844,566 565,389
                                                       $ 1,736,739                                                   $ 1,409,955 TOTAL CURRENT LI ABILITIES                     $ 2,679,091                                                   $ 2,556,159 l       TOTAL LI ABILITIES                             $27,934,176                                                   $27,846,869 I

I I I I TOTAL LIABILITIES AND FUND EQUITY $38,323,299 $37,302,489 l l _ r UTILITIES COMMISSION Statement 2 L CITY OF NEW SMYRNA BEACH, FLORIDA STATEMENT OF REVENUES, EXPENSES AND CHANCES IN [ RETAINED EARNINGS For the Years Ended September 30, 1981 and 1903 1981 1980 OPERATING REVENUES: Sales $11,894,457 $10,063,347 [ Other revenues 91,331 70,711 TOTAL OPERATING REVENUES $11,985,788 $10,134,058 OPERATING EXPENSES: Production expenses $ 5,744,288 $ 5,347,656 Transmission, distribution and collection 1,113,301 980,960 Customer accounting 304,241 259,025 Administrative and general 1,612,993 1,213,890 Required payments to the City of { New Smyrna Beach, (Note 4) 705,868 598,205 State utilities tax 57,196 55,155 Depreciation 1,008,326 962,197 TOTAL OPERATING EXPENSES $10,546,213 $ 9,417,088 OPERATING INCOME $ 1,439,575 $ 716,970 ADD: NONOPERATING REVENUE:

-     Interest earnings                                                                                                  $ 1,010,548      $ 1,153,818 0ther income                                                                                                            222,106          170,107 TOTAL NONOPERATING REVENUE                                                                                      $ 1,232,654      $ 1,323,925 TOTAL INCOME                                                                                                    $ 2,672,229      $ 2,040,895 LESS:    NONOPERATING EXPENSE:

[ Interest and debt expense $ 1,527,731 $ 1,703,960 Loss on retirement of fixed assets 210,995, -

 ~

TOTAL NONOPERATING EXPENSE $ 1,738,726 $ 1,703,960 NET INCOME $ 933,503 $ 336,935 RETAINED EARNINGS - Beginning of year 9,455,620 9,118,685 RETAINED EARNINGS - End of year $10,389,123 $ 9,455,620 [ [ The accompanying notes are an integral part of the financial statements.

1 l UTILITIES COMMISSION Statement 3 CITY OF NEW SMYRNA BEACH, FLORIDA Page 1 of 2 STATEMENT OF CHANGES IN FINANCIAL POSITION For the Years Ended September 30, 1981 and 1980 1981 1980 SOURCES OF WORKING CAPITAL: Operations : Net income $ 933,503 $ 336,935 Items not requiring working capital: Depreciation 1,008,326 962,197 Amortization of nuclear fuel cost 78,305 72,764 Loss on retirement of fixed assets 210,995 - TOTAL FROM OPERATIONS $ 2,231,129 $ 1,371,896 Proceeds from retirement of fixed assets 6,406 - Contributions in aid of constructions 3,931,424 2,691,114 Decrease in restricted assets 3,614,712 1,627,539 I increase in liabilities payable from restricted assets 326,784 858,840 Other 4,000 7,057 TOTAL SOURCES OF WORKING CAPITAL $10,114,455 $ 6,556,446 USES OF WORKING CAPITAL: I Additions to utility plant increase in a deferred charge

                                                                                       $ 9,509,131 160
                                                                                                       $ 5,652,134 46,410 Increase in noncurrent receivables                                                       78,925              -

TOTAL USES OF WORKING CAPITAL $ 9,588,216 $ 5,698,544 NET INCREASE IN WORKING CAPITAL $ 526,239 $ 857,902 I I I I I - The accompanying notes are on integral part of the financial statements. b [ UTILITIES COMMISSION Statement 3 CITY OF NEW SMYRNA BEACH, FLORIDA Page 2 of 2 STATEMENT OF CHANGES IN FINANCIAL POSITION [ For the Years Ended September 30, 1981 and 1980 m ( 1981 1980 increase Increase { (Decrease) (Decrease) ELEMENTS OF NET INCREASE IN WORKING CAPITAL: [ Cash $ 108,454 $ 324,326 Accounts receivable ( 181,508) 456,426 Unbilled accounts receivable 154,723 94,149 Notes receivable 939 ( 2,183) Inventory of materials and supplies 58,310 198,113 Prepaid expenses ( 6,174) ( 12,182) [ Accrued interest receivable 23,643 - Assessments receivable 6,842 ( 1,506) Due from Florida Power and Light Company - ( 49,265) Due from other governments 157,158 381,821 [-- Cash overdrafts 354,605 ( 354,605) Accounts payable ( 55,517) ( 119,932) Accrued expenses ( 103,605) ( 22,330) [. Due to other governments 8,369 ( 34,930) NET INCREASE IN WORKING CAPITAL S 526,239 $ 857,902 [ Financing and investing activities not affecting working capital: 1981 Decrease in deferred charges of $35,625 and a corresponding decrease of $35,625 in deferred liabilities. 1980 Ecase in deferred charges of $2,487 and a corresponding decrease of $2,487 ( in deferred liabilities. [ [ [ [ [- The accompanying notes are on integral part of the financial statements. T - - - - >

m E u [ NOTES TO THE FINANCI AL STATEfAENTS [ [ [ [ [ [ [ [ [ [ [ [ [ [ m---- -

UTILITIES COMMISSION [ CITY OF NEW SMYRN A BEACH, FLORIDA - NOTES TO THE FINANCI AL STATEMENTS September 30, 1981 Page 1 of 12 ,3

1.

SUMMARY

OF SIGNIFICANT ACCOUNTING POLICIES I The accounting policies of 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 Federal Energy Regulatory Commission, and the National Council on Governmental Accounting. The following is a summary of the significant policies: Reporting Entity The Utilities Commission, City of New Smyrna Beach, Florida, was created in 1967 through the passage of Chapter 67-1754, Laws of Florida, Special Acts of 1967 (House Bill 1669) which amended the Charter of the City of New Smyrna Beach, I Florida, to create the Utilities Commission, City of New Smyrria Beach. The special act was approved by a referendum vote of the people. Pursuant to Chapter 67-1754, , the Commission has full and exclusive authority to the extent permitted by law over the management, operation and control of the City's electric, water and pollution - control utilities system. Fund Accounting On May 28, 1975, the Utilities Commission, City of New Smyrna Beach, Florida, passed Resolution Number 16-75, which established the electric, water and pollution control systems as a single utility fund. This utility fund is accounted for as an I enterprise fund. Enterprise funds are used to account for operations that are financed and operated in a mwner where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the - general public on a continuing basis be financed or recovered primarily through user charges. Basis of Accounting Basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. The Utilities Commission, City of New Smyrna Beach, utilizes the accrual basis of - accounting. .;y utilizing this method, revenues are recognized when they are _ i carned, and expenses are recognized as they are incurred. Unbilled electric, water and pollution control utility service receivables are recorded at year end so as to provide a better matching of service revenues and the costs of providing the 1 ~ service. 1 Budget and Budgetary Accounting An annual budget was adopted 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 the accrual method of budgeting, c revenues and expenses are budgeted for specific periods of time and are recorded as incurred, along with acquired assets, without regard to the date of receipts, I or payment of cash. staff and authorized Budget appropriations are prepared by the administrative by resolution by the Utilities Commission. Budgetary control is exercised at the departmental level. During the fiscal year ended September 30, 1981, the Utilities Commission, City of New Smyrna Beach, incurred operating expenses in excess of appropriations in the following departments on the next page: .

UTILITIES COMMISSION { CITY OF NEW SMYRNA BEACH, FLORIDA NOTES TO THE FINANCIAL STATEMENTS September 30, 1981 Page 2 of 12

1.

SUMMARY

OF SIGNIFICANT ACCOUNTING POLICIES: (continued) p Budget and Budgetary Accounting (continued) L (Over) Total Under Appropriated Actual Budnet Electric $ 8,498,500 $ 8,550,293 $( 51,793) Water 1,087,600 1,196,096 (108,496) Pollution Control 841,000 799,824 41,176 TOTAL $10,427,100 $10,546,213 $( 119,113) Utility Plant The cost of additions, replacements, and renewals of units of property is 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. Maintenance and repairs of property and replacements and renewals of items determined to be less than units of property, are charged to operating expenses--maintenance. t Depreciation is provided for by utilization of the straight-line method calculated on a service-life basis to amortize the cost over the assets' economic estimated useful lives which are as follows: Electric System: Production plant: Steam production 20-35 years Nuclear production 22 years Diesel production 25-35 years Transmission plant 24-33 years Distribution plant: Underground conduit 60 years Other distribution plant 19-33 years General Plant: Structures and improvements 50 years Other general plant 10-36 years Water System: Source of supply plant 50 years Pumping plant 25-33 years Water treatment plant 50 years Transmission and distribution plant: Transmission and distribution plant 50-67 years Meters and meter installations 25 years General Plant: Structures and imprcvements 50 years Other general plant 6-25 years I _g_

UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA f NOTES TO THE FINANCIAL STATEMENTS S::ptember 30, 1981 Page 3 of 12 ( 1.

SUMMARY

OF SIGNIFICANT ACCOUN1ING POLICIES: (continued) Utility Plant (continued) Pollution control system: Collection plant 25-50 years Pumping plant Structures and improvements 50 years Pumping equip nent 25 years Treatment and disposal plant 25 years General plant 10-12 years Depreciation expense for the year by function was as follows: [ Year Ended 9-30-81 9-30-80 Electric system $ 762,319' $ 719,461 [ Water system 134,598 133,702 Pollution control system 111,409 109,034 ( TOTAL $1,008,326 $ 962,197 Capitalized Interest ( lt is the policy of the Commission to capitalize construction period interest in accordance with Financial Accounting Standards Board Opinion No. 34. During the year, interest expense totaling $1,836,930 was incurred by the Utilitie, Commission of which $309,199 was appropriately capitalized as construction period [ interest. Contributions in Aid of Construction ( Contributions in aid of electric plant construction have been credited to the electric plant accounts in accordance with accepted industry practice established by the Federal Energy Regulatory Comn.ission (formerly the Federal Power Commission). ( Water and Pollution Control contributions in aid of construction, including connection fees and tap charges, are also treated as reductions to plant accounts. The following is a summary of the contributions credited to the Fixed Asset Accounts: Contributions Original in Aid of Net ( Utility Plant in Service Electric $20,753,941 $ 248,153 $20,505,788 Water 7,759,279 1,285,250 6,474,029 {. Pollution Control 4,912,724 611,227 4,301,497 TOTAL $33,425,944 $2,144,630 $31,281,314 [ Construction Work in Progress Electric $ 964,737 $ -

                                                                                                                                                                                                   $    964,737 Water                                                                                     1,900,765                                          -

1,900,765 ( Pollution Control 9,802,683 5,819,631 3,983,052 TOTAL $12,668,185 $5,819,631 $ 6,848,554 [ GRAND TOTAL $46,094,129 $7,964,261 $38,129,868

                                                                                                                                    ~ 9~             _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _                  _ ._ _

UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA [ NOTES TO THE FINANCI AL STATEMENTS September 30, 1981 Page 4 of 12

1.

SUMMARY

OF SIGNIFICANT ACCOUNTING POLICIES: (continued) r Rates, Revenues and Fuel Expense Revenues are recognized based on monthly cycle billings to customers. The rate schedules are approved by the Utilities Commission. The electric rate schedule I contains a fuel adjustment clause which reflects the cost of fuel as well as the energy and fuel components of purchased power. Generally, the effects arc reflected in customer billings about two months after the changes occur. The cost I 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. Investments Investments are stated at amortized cost. Inventory of Materials and Supplies The inventory is priced at cost by the use of the "first-in, first-out" method of accounting. Electric line transformers, electric meters, water meters and replacement units for the steam and diesel generating plants, are classified as utility plant in accordance with accepted industry practices set forth by the National Association of Regulatery Utility Commissions. Deferred Charges - Long-Term Debt I Costs relating to the issuance of Utilities System Revenue Refunding and improvement Certificates, Series 1978, are being amortized using the bonds outstanding method. Reserves Reserves are used to record a portion of retained earnings which must be segregated for some future use and which is, therefore, not availab!e for further appropriation or expenditure. Compensated Employee Absences I Accumulated unpaid vacation and other employee benefit amounts, except for sick pay, are accrued when the expense is incurred. The commitment for accumulated unpaid sick pay is not recorded as incurred since the Commission does not provide I for the employees' vesting of accumulated sick pay benefits.

2. LONG-TERM DEBT Revenue certificates / bends outstanding at September 30, 1981, and 1980, are as follows:

                                                                                           ,           Balances Due at 9-30-81              9-30-80 Waterwork's and Electric:                                                                        (000 omitted)

I Series 1955 - 3.75% due 1993 Outstanding Principal $1,031 $1,062 Les:, amounts to be retired by Trustee (1,031) $ (1,062) $ ~ UTILITIES COMMidSION CITY OF NEW SMYRNA BEACH, FLORIDA NOTES TO THE FINANCI AL STATEMENTS S:ptember 30, 1981 Page 5 of 12

2. LONG-TERM DEBT : (continued)

Balances Due at _ 9-30-81 9-30-80 (000 omitted) _ Waterworks and Electric: (continued) Series 1962 Refunding - 3.5% due serially to 1987 and $35,000 in 1999 ~ Outstanding principal $ 428 $ 493 Less amounts to be retired by Trustee ( 428) $ ( 493) $ Series 1962 - 3.9% to 4.2% due ~ serially to 2000 m Outstanding principal $2,005 $2,040 Less amounts to be retired by Teustee (2,005) $ (2,040) $ E Series 1965 - 4.2% and 4.25% due serially to 2004 Outstanding principal $7,085 $2,110 Less amounts to be retired by Trustee (2,085) $ ( 2,110,) $ Sewer: Series S - 1963 - 3.9% due serially to 2002 Outstanding principal $ 450 $ 465 Less amounts to be retired by Trustee ( 450) $ ( 465) $ Series T - 1963 - 4.0% due 2003 Outstanding principal $1,006 $1,038 Less amounts to be retired by Trustee (1,008) $ (1,038) $ Series B - 1965 - 3.7% to 4.1% due serially to 2003 Outstanding principal C 560 $ 575 Less amounts to be retired by Trustee ( 560) $ ( 575) $ Utilities:

Series 1975 - 3.75% to 6.2% due serially to 2004 Outstanding principal $2,830 $2,880 Less amounts to be retired by Trustee (2,830) $ (2,880) $ Series 1975A - 5.0% to 6.6% due serially to 2005 I Outstanding principal Less amounts to be retired by Trustee

                                                                   $3,775 (3,775)                                                                $                                                                                                                                                       $3,850 (3,850)     $                           Series 1976 - 4. 5% to 5. 3% due serially to 1986 Outstanding principal                    $ 340                                                                            $ 420 Less amounts to be retired by Trustee   (                      340)                                            $     (    420)   $                                                                                                                                   _ _ _- ___-_____-___ - _ -__- ___- -___-___-___- - _______________-

UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA NOTES TO THE FINANCI AL STATEMENTS September 30, 1981 Page 6 of 12 ( 2. LONG-TERM DEBT: (continued)

       '-~

Balances Due at 9-30-81 9-30-80 L (ooo omitted) Water and Sewer Revenue General Obligation Eonds: Series 1974 - 7.2% to 7.5% due [ serially to 2004 Outstanding principal $6,090 $6,200 Less amounts ta be retired by Trustee (6,090) $ (6,200) $ Series 1976 - 4.5% to 6.2% due serially to 2001 Outstanding principal $6,090 $6,200 { Less amounts to be retired by Trustee (6,090) (6,200) $ Utilities System Revenue Refunding [ and improverr. tnt Certificates: Series 1978 Outstanding principal $25,810 $25,810 $25,810 $25,810 TOTAL $25,810 $25,810 On August 29, 1978, the Utilities Commission provided for the advance refunding of the following revenue certificates / bonds which will be referred to thereafter as refunded revenue bonds: Waterworks and E!ectric: S eries 1955 - 3.75% due serially to 1993 Series 1962 refunoing - 3.596 due serially to 1987 and $35,000 in 1999 _ Series 1962 - 3.9% to 4.2% due serially to 2000 Series 1965 - 4.2% and 4.25% due serially to 2004 Sewer: { Series S - 1963 - 3.9% due serially to 2002 Series T - 1963 - 4.0% due in 2003 Series B - 1965 - 3.7% to 4.1% due serially - to 2003 Utilities: Series 1975 - 3.75% to 6.2% due serially to 2004 [ Series 1975A - 5.0% to 6.6% due serially to 2005 Series 1976 - 4.5% to 5.3% due serially to 1986 { Water and Sewer Revenue General Obligation Bonds: Series 1976 - 4.5% to 6.2% due serially to 2001 The refunding of the refunded revenue bonds was provided for by the sale of [ $25,810,003 Utilities System Revenue Refunding and improvement Certificates, Series 1973 and $22,3B5,000 Special Obligation Certificates, Series 1978. From the proceeds of the sale of the two issues, sufficient monies were deposited into an [ irrevocable escrow account to be invested in United States obligations that, together with the interest earned thereon, will provide sufficient funds for the payment of [

UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA NOTES TO THE FINANCI AL STATEMENTS Sep_tember 30, 1981 Page 7 of 12

2. LONG-TERM DEBT : (continued) maturing principal and interest on the Utilities System Revenue Refunding and improvement Certificates and the $22,335,000 Special Obligation Certificates, Series I 1978. The proceeds of the bond sale also provided for the funding of the reserve fund, an amount which equaled the maximum annual debt service requirement and provided over six million dollars 'for the acquisition, construction, additions and improvements to the utility system. The refunded revenue bonds and certificates are treated as extinguished debts in the accompanying financial statements as explained in this note. Thr debt service requirements of the Utilities System Revenue Refunding and Im, ovements Certificates, Series 1973 are funded monthly from the Revenue Fund by paying one-sixth of all interest coming due on certificates on the next semi-annual interest payment date and one-sixth or one-twelfth of all principal maturing on the serial certificate on the next semi-annual or annual maturity date. The Utilities System Revenue Refunding and improvement Certificates, Series 1978 Bond Resolution provides that the certificates shall be secured forthwith equally and ratably by the first lien on and a pledge of the net revenues of the system.

The authorization for the Utilities System Revenue Refunding and improvement Certificates, Series 1978, provides that the Utilities Commission will not issue additional obligations except for the construction and acquisition of additions, l extensions and improvements to the system or for refunding purposes and except l upon the conditions provided in the authorizing resolution. l Under the terms of the long-term debt agreement, the Commission has agreed to meintain certain restricted funds (See Note 3) and to comply with the covenants contained. in such agreements. Certain of these agreements contain the following l provisions relating to the rights of the obligation holder: f "Any Holder of Ce. tificates or any coupoTs appertaining thereto 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 I all rights, including the right to the appointment of a receiver, existing under the laws of the State of 17orida, 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." The current maturities of long-tern debt at September 30, were as follows: September 30, 1981 1980 Utilities System Revenue Refunding and improvement Certificates, Series 1978 $160,000 $ -

1 3 UTILITIES COMMISSION [~ CITY OF NEW SMYRNA BEACH, FLORIDA L NOTES TO THE FINANCIAL STATEMENTS September 30, 1981 Page 8__of 12 r L 2. LONC-TERM DEBT : (continued) The schedules of debt service requirements to maturity on the $25,810,000 Utilities System Revenue Refunding and improvement Certificates is as follows: r Payment Coupon Total [ Date 04-1-82 $ Principal 160,000 5.350% Rate Interest 883,033 Requirements

                                                                                                                                                   $ 1,043,033 10-1-82       165,000                                    5.350                                                   878,753             1,043,753 04-1-83       170,000                                    5.450                                                  d74,339              1,044,339

{ 10-1-83 175,000 5.450 869,707 1,044,707 04-1-84 175,000 5.550 864,938 1,039,938 r 10-1-84 180,000 5.550 860,082 1,040,082 L 04-1-85 185,000 5.650 855,087 1,040,087 10-1-85 195,000 5.650 849,861 1,044,861 04-1-86 200,000 5.750 844,352 1,044,352 [ 10-1-86 04-1-87 205,000 210,000 5.750 5.900 838,602 832,708 1,043,602 1,042,708 10-1-87 215,000 5.900 826,513 1,041,513 04-1-88 220,000 6.000 820,171 1,040,171 { 10-1-88 230,000 6.000 813,571 1,043,571 04-1-89 235,000 6.100 806,671 1,041,671 p 10-1-89 245,000 6.100 799,503 1,044,503 L 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 6.300 { 04-1-3 275,000 285,000 6.350 767,873 759,211 1,042,873 1,044,211 10-1-92 290,G00 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 1,041,42h 10-1-94 330,000 7.000 710,234 1,040,234 [ 04-1-95 10-1-95 345,000 355,000 7.000 7.000 698,684 686,609 1,043,584 1,041,609 04-1-95 370,000 7.000 ' 674,184 1,044,184 { 10-1-96 04-1-97 380,000 395,000 7.000 7.000 661,234 647,934 1,041,234 1,042,934 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 04-1-99 455,000 7.000 589,659 1,044,659 10-1-93 470,000 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 04-1-01 570,000 7.000 522,809 1,042,809 10-1-01 7.000 { 04-1-02 540,000 555,000 7.000 504,609 485,709 1,044,609 1,040,709 10-1-02 575,000 7.000 466,285 1,041,285 04-1-03 7.000 [ 10-1-03 595,000 615,000 7.000 446,160 425,335 1,041,160 1,040,335 04-1-04 640,000 7.125 403,810 1,043,810 [

~ UTILITI.'.S COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA NOTES TO THE FINANCIAL STATEMENTS September 30, _1981 Page 9 of 12 5 2. LONG-TERM DEBT : (continued) - Payment Coupon Total _ Date Principal Rate Interest Requirements 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 1,043,094 033 0 6 735,000 7.125 307,800 1,042,800 ~ 10-1-06 760,000 7.125 281,616 1, 0111, 61 6 04-1-07 79U,000 7.125 254,541 1,044,541 10-1-07 815,000 7.125 226,397 1,041,397 04-1-08 845,000 7.125 197,363 1,042,363 10-1-08 875,000 7.125 167,259 1,042,259 04-1-09 905,000 7.125 136,088 1,041,088 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 35,803 1,040,803

                                                                                                                                                                                           =
                                                         $25,810,000                                                             $34,647,420           $60,457,420 m

L ' in accordance with generally accepted accounting principles the $22,335,000 Special Obligation Certificates, Series 1978, which were issued as a part of the advance E refunding is not a liability of the Utilities Commission because the interest and L principal payments will be serviced by the First National Banl' of Florida, Tampa, Florida, from the earnings and proceeds of the advance refunding which were placed r in irrevocable trust funds.

3. RESTRICTED ASSETS l Restricted assets consist of the following:

September 30, 1981 l Accrued September I interest 30, 1980 Cash f ovestments Receivable Total Total Utilities System Revenue - ~ f Refunding and improvement Certificates, Series 1978 Fund: Sinking Fund $ 3,214 $ 27,603 $ 219 $ 31,036 $ 23,550 Reserve Fund 3, 6 0') 2,129,858 27,596 2,161,054 2,144,002 Renewal and Replacement I Fund Construction Fund 282,838 846,870 2,409,883-128,168 282,838 3,384,921 176,467 7,414,024

                                                                                          $1,136,522 $4,567,344 $155,983 $5,859,849 $ 9,758,043 Customers' Deposits                                                                   185,079                                    439,347      24,486          648,912       365,430 TOTAL                                                                        $1,321,601                   $5,006,691                  $180,469 $6,508,761
                                                                                                                                                                               $10,123,473 The investments cc,nsist of United States Treasury obligations and certificates of deposit. The cash includes $1,250,000 invested overnight in a commercial bank repurchase agreement at September 30, 1981.

l L - UTILITIES COMMISSION L CITY OF NEW SMYRNA BEACH, FLORIDA NOTES TO THE FINANCI AL STATEMENTS September 30, 1981 Page 10 of 12 L'

4. REQUIRED PAYMENT TO THE CITY OF NEW SMYRNA BEACH, FI ORIDA The legislation that created the Utilities Commission requires the Commission to pay

[ to the general fund of the City of New Smyrna Beach, Florida, 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 L certificates.

5. SEGMENT INFORMATION L

The Utilities Commission provides electric, water- and pollution control services to the public. In accordance with NCGA Interpretation No. 2, the following is a summary ( of the segment information for the electric, water and pollution control systems. Pollution Electric Water Control ( System System System Total Operating Revenues $ 9,810,442 $ 1,154,658 $ 1,020,688 $11,985,788 Depreciation and Amortization 762,319 134,598 111,409 1,008,326 h Operating income (loss) 1,260,149 ( 41,438) 220,864 1,439,575 Required payments to City of New Smyrna Beach 576,058 69,156 60,654 705,868 Net income (loss) 71,171) 91,897 ( Contributions in aid of 912,777 ( 933,503 Construction 24,826 274,129 3,632,469 3,931,424 Utility plant acquisitions 1,345,768 1,805,622 6,357,741 9,509,131 [ Utility plant retirements ( 219,983) - ( 296,403) ( 516,386) Net working capital 1,689,141 284,840 772,569 2,746,550 Total assets 18,842,048 9,371,142 10,110,109 38,323,299 ( Revenue Certificates Payable - Fund Equity 12,448,163 4,939,104 6,955,795 3,325,904 6,406,O'42 2,124,115 25,810,000 10,389,123

6. EMPLOYEES' PENSION PLAN

{ The Utilities Commission, City of New Smyrna Beach, Florida, has provided a pension plan for all its employees which assets are included in the Florida Retirement System

 ~
 -       of the State of Florida. 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 contributions, employer contributions and income from the investment of accumulated funds. Recent amendments require that the plan be non-contributory for the employees. The act { also provides that, should the accumulated funds in the fund at any time be insufficient to meet and p,ay the benefits due, the Commission shall supplement the funds _

   ;     by an appropriation from current funds, or from any revenues which may :awfully be used for said purposes, in an amount sufficient to make up the deficiency.

The actual . contributions and contribution rates in effect for the year ended September 30, 1981, were as follows on the next page: [ -

UTILITIES COMMISSION f CITY OF NEW SMYRNA BEACH, FLORIDA NOTES TO THE FINANCI AL STATEMENTS Se_ptember 30, 1981 Page 11 of 12

6. EMPLOYEES' PENSION PLAN : (continued) f Employer's Contributions $215,697 Regular Special Risk

( Employees Employees Percent of Employee's Gross Earnings Normal cost 5.12% 10.30% { Past service cost 3.98 3.65 TOTAL 9.10% 13.95% The most recent actuarial information concerning the Florida Retirement System is set forth below : Most recent valuation date July 1, 1980 Actuarial cost method used Entry age-normal cost Unfunded prior service cost $4,323,005,000 { Period of amortization 30 years Interest rate used in determining costs 83% Total assets of pension fund $3,867,514,000 [ Valuation basis of assets Bonds - amortized cost Stocks - market value [ 7. COMPENSATED EMPLOYEE ABSENCES It is the Utilities Commission's policy to grant employees annual vacation lea"e and compensated sick leave. As of September 30, 1981, the Utilities Commission has a { potential commitment for accumulated sick pay benefits of $304,079.

8. 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.

9. COMMITMENTS f Grant Programs: The Utilities Commission has participated in different federally L assisted grant programs during the year, principal of which are the Environmental Protection Agency programs and Comprehensive Employment Training Act. These programs are subject to program compliance audits by the grantors or their

( representatives. The auditr of these programs for or including the year ended September 30, 1981, have not yet been conducted. Accordingly, the Utilities Commission's compliance with applicable grant requirements will be established at some future date. The amount, if any, of expenditures which may be disallowed [ by the granting agencies cannot be determined at this time although the Utilities Commission expects such amounts, if any, to be immaterial. [ L UTILITIES COMMISSION [ CITY OF NEW SMYRNA BEACH, FLORIDA

  . NOTES TO THE FINANCI AL STATEMENTS September 30, 1981                                                                                                                               Page 12 of 12
   ~

F L. 9. COMMITMENTS : (continued) p Construction Work in Progress: As of September 30. 1981, approximately $3.98 million L of construction work in progress consisted primarily of the engineering, planning and construction costs associated with the expansion of the pollution control treatment plant and expansion of the sewer collection system to serve areas presently without [ service. Approximately $1.90 million consists primarily of planning, engineering and construction costs associated with the acquisition and drilling of new raw water supply wells and the construction of water main transmission lines necessary to link the new [~ -wellfield.. to the Commission's- water treatment - facilities. As a result of these ongoing " construction activities, the Utilities Commission has unrecognized construction contract commitments of approximately $470,000 (pollution control) and $169,000 (water) of p which approximately $352,500 will be funded by grants from the Environmental L Protection Agency. E [ [ [ [ [. [ [ [ [ l [ - _ ~ _ . _ - . _ _ _ _ . _ - - - - . . _ _ . . _ . . - _ - - _ - - - . _ - - _ - - - _ - -

- CONTENTS L u

~

Pages Accountants' Report

~

1 Financial Statements: Balance Sheets 2 Statements of Revenue and Expenses 3 1 l-Statements of Changes in Patronage Capital and Other Margins and Equities (Deficits) 4 Statements of Changes in Financial Position 5 Notes to Financial Statements 6-12 l lI 1 1 I l I l l

[ COOPERS & LY B R A N D CERTIFIED PUBLIC ACCOUNTANTS [ A MEMBER FIRM OF COOPERS 8. LYBRAND (INTERNATIONAL) [ [ [ Board of Trustees Seminole Electric Cooperative, Inc.: l [ We have examined the balance sheets of Seminole Electric Cooperative, Inc. as of December 31, 1981 and 1980, and the related statements of revenue and expenses, chanles in patronage capital and other margins and [ equities (deficits), and changes in financial position for the years then ended. Our examinations were made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting h records and such other auditing procedures as we considered necessary in the circumstances. { In our opinion, the financial statements referred to above present fairly the financial position of Seminole Electric Cooperative, Inc. as of December 31, 1981 and 1980, and the results of its operations and the p changes in its financial position for the years then ended, in conformity L with generally accepted accounting principles applied on a consistent basis.

            #pf                                                             ~R

[ Tampa, Florida March 3, 1982 E E L 1 F - _ _ ---- - --_- -

7 O R R R R R R R R M M M M M M M M _O F SEMINOLE I;.ECTRIC COOPERATIVE, INC. BALANCT, SHEE'.1, December 31,1981 and 1980 ASSETS (Note 5) 1981 1980 EQUITY AND LIABILITIES 1981 1980 Utility plant, at original cost Equity (Note 6): (Notes 2, 3 and 5): Plant in service $ 12,841,952 $10,269,024 Construction work in progress 366,569,553 79,791,324 Memberships $ 1,200 $ 1,200 379,411,505 90,060,348 Patronage capital 616,237 597,713 Less accumulated depreciation (1,683,461) (1,289,256) Other margins and equities (deficit) (12.293) (75,215) Acquisition adjustment, less amartization 12,699 13,624 Donated capital 17,919 17,919 377,740,743 88,784,716 Total equity 623,063 541,617 Nuclear fuel, less amortization 827,724 561,712 Nuclear fuel in process of refinement end enrichment 908,516 570,619 Long-term liabilities (Note 5): Utility plant, net 379,476,983 89,917,047 Construction payables 74,060,429 15,928,944 Long-term debt 400,381,047 76,369,647 livsstments, at cost: Investments in associated 474,441,476 92,298,591 organizations (Note 4) 387,136 256,245 Pollution control funds held oy t rustee Current liabilities: including accrued interest of

           $3,575,565 (Note 5)                     93,545,180                -

Note payable (Note 7) 2,206,763 - 93,932,316 256,245 Accounts payable 6,436,443 3,689,046 Taxes, other than income, and interest  ! Current assets; accrued 1,123,599 467,023

Cash 16,835 169,831 Other current and accrued liabilities 204,958 92,388

! Temporary cash investments - 2,190,000 , Rscalvables, principally for sales i ( cf electricity 2,904,402 1,440,113 Total current liabilities 9,971,763 4,248,457 Unbilled revenues 2,259,307 1,487,426 Mit9tiels and supplies, at cost 239,184 131,668 l Pr,spsyments and other 914,097 145,023 1 Total current assets 6,333,825 5,564,261 Commitments (Notes 4 and 12) Defstrsd charges (Note 10) 5,293,178 1,351,112

                                                $485,036,302       $97,088,665                                                      $485,036,302     $97,088,665 See accompanying notes.

2

6 STATEMENTS OF REVENUE AND EXPENSES for the years ended December 31, 1981 and 1980 1981 1980 Operating revenues (Note 2) $35,259,725 $17,649,900 Operating expenses: Operation: Fuel 214,892 177,656 Other production expenses (Note 8) 970,816 805,287 Purchased power 31,099,961 13,943,058 Transmission 453,419 452,330 Administrative and general 1,015,543 632,242 Depreciation and amortization (Note 2) 370,322 362,939 Taxes other than income 195,457 176,128 other 18,846 39,659 34,339,256 16,589,299 Operating margins before interest charges 920,469 1,060,601 Interest charges: Long-term obligations 25,796,529 4,226,660 Current obligations 224,767 412,548 other 5,706 15,874 Less interest charged to construction (Note 2) (25,106,631) (3,731,669) 920,371 923,413 Operating margins 98 137,188 Patronage capital credits 18,426 82,600 Net operating margins 18,524 219,788 Non-operating margins, net 62,922 2,027 Net margins S 81,446 S 221,815 l I 1 I l See accompanying notes. 3

STATEMENTS OF CHANGES IN PATRONAGE CAPITAL AND OTHER MARGINS AND EQUITIES (DEFICITS) for the years ended December 31, 1981 and 1980 Other Margins _ and Patronage Equities _ Capital (Deficits) Total Balance, December 31, 1979

                                               $377,925        $(77,242)   $300,683 Net margins, 1980                    219,788          2,027            221,815 Balance, December 31, 1980               597,713        (75,215)          522,498 Net margins, 1981                     18,524         62,922                   81,446 Balance, December 31, 1981             $616,237        M93)        $603,944 7

w W w h witusius huummme m W w L 4 F i .

STATEMENTS OF CHANGES IN FINANCIAL POSITION for the years ended becember 31, 1981 and 1980 { _ . . 1981 1980 Funds provided by: { Operations: Net margins $ 81,446 $ 221,815 Add items not affecting working capital: { Depreciation and amortization of plant Amortization of nuclear fuel (Note 2) 370,322 212,836 362,939 176,393 Total funds provided by operations 664,604 761,147 Increase in icng-term debt 324,016,000 61,496,000 Increase in construction payables 58,131,485 15,156,666 { Decrease in working capital 4,953,742 -

                                                         $387.765,831                   $77,413,813 p   Funds used for:

L Property additions, including net interest charged to construction $290,143,094 $64,719,081 Payments on long-term debt 4,600 4,376 [ Increase in investments 93,676,071 130,978 Increase in deferred charges 3,942,066 606,610 Increase in working capital - 11,952,768 { $387,765,831 $77,413,813 Changes in components of working capital: . Increase (decrease) in current assets: Cash and temporary cash investments $ (2,342,996) $ 2,241,435 Peceivables, principally for sales of electricity 1,464,089 1,228,033 { Unbilled revenues Materials and supplies 771,881 107,516 733,234 (229,083) Prepayments and other 769,074 (47,395) { 769,564 3,926,224 Increase (decrease) in current liabilities: p Note payable 2,206,763 (9,688,000) L Accounts payable 2,747,397 1,690,918 Taxes, other than income, and interest accrued 656,576 (93,501) { ' Other current and accrued liabilities 112,570 5,723,306 64,039 (8,026,544) Increase (decrease) in working capital $ (4,953,742) $11,952,768. E See accompanying notes. 5 F . -

{ NOTES TO FINANCIAL STATEMENTS

1. The Cooperative:

Seminole Electric Cooperative, Inc. (Seminole) is a generation and transmission cooperative. It is responsible for meeting the electric {. power and energy needs of its eleven distribution cooperative members operating within the State of Florida, p At the present time, the Seminole-owned resources for supplying L its members' electric power and energy requirements are its 1.6994% undivided ownership interest in the Crystal River Unit #3 (CR3) nuclear power plant operated by Florida Power Corporation, and various [ transmission lines connecting individual members to other power suppliers. The balance of its members' needs are supplied by wholesale purchases of electricity from other power suppliers. In order to supply a larger share of its members' projected needs, Seminole is constructing two new generating facilities (Seminole p Unit 1 and Unit 2) near Palatka, Florida, with approximately 600 L megawatts of output per unit. These units will be connected to the Florida bulk power supply grid through several 230 kv transmission lines and associated facilities, also being constructed by Seminole. I { Site certification was received on September 18, 1979, and construc-tion commenced on October 1, 1979. It is anticipated that Seminole Unit I will become operational in mid year 1983 and Unit 2 in early { 1985.

2. Summary of Significant Accounting Policies:

Seminole maintains its accounts in accordance with policies prescribed or permitted by the Rural Electrification Administration (REA). The more significant accounting policies are as follows: (A) Utility Plant - Utility plant is stated at original cost. Such cost includes applicable supervisory and overhead cost, plus net interest charged during construction (See Note 2-E). The cost of maintenance and repairs, including renewals of minor items of property, is charged to operating expense. The cost of replacement of depreciable property units, as distinguished from minor items, is charged to utility plant. The cost of units {- replaced or retired, including cost of removal, net of any salvage value, is charged to accumulated depreciation. Income p taxes related to capitalized income derived from investment of L unexpended construction funds have been charged to construction work in progress. p (B) Operating Revenues - Seminole has wholesale power contracts with L each of its members, whereby the members must purchase all electric power and energy which the member shall require for its system within the State of Florida to the extent that Seminole h shall have such power and energy and facilities available; provided, however, that the member shall have the right to (Continued) 6 [ . .

s [ NOTES TO FINANCIAL STATEMENTS, Continued {

2. Summary of Significant Accounting Policies, continued:

continue to purchase power under any existing contract with a supplier other than Seminole during the remainder of the terms of these existing contracts or until such time as Seminole [ requests these contracts be terminated. Paymenta received and disbursed by Seminole on behalf of its members under these existing contracts are not recognized either as a revenue or as ( a cost. Operating revenues consist of billings for sales of electric power by Seminole to its members, a member adjustment factor, ( and a facilities use charge for Seminole's transmission lines servicing a single member cooperative. Revenues and patronage capital are accrued to match costs incurred in generation {. at CR3 and transmission line ownership or billings received for purchased power. (C) Depreciation - Seminole provides for depreciation using the straight-line method at annual rates which will amortize the original cost of depreciable property over its estimated useful service life. The rates for 1981 and 1980 were as follows: 1981 1980 Nuclear production plant 3.6% 3.6% Transmission plant 2.75% 2.75% [ General plant 13.1% 13.2% The nuclear production plant rates include an estimated negative { salvage value of 12%, representing estimated cost of removal and disposal. (D) Amortization of Nuclear Fuel - The cost of nuclear fuel is [ amortized to fuel expense based on the quantity of heat produced for generation of electric energy in relation to the quantity of heat expected to be produced over the life of the nuclear fuel ( core. Although there is no facility presently in operation to process spent nuclear fuel and it may be necessary to store spent nuclear ( fuel for an indefinite neriod, no provision has been made in these statements for these costs. { (E) Capitalization of Interest - In accordance with procedures permitted under the Uniform System of Accounts prescribed by the REA, a portion of interest on borrowed funds, at average rates of approximately 11.8% and 11.6% for 1981 and 1980, respectively, [ is capitalized as a component of the cost of construction work in progress, and is reflected as a reduction of interest expense. Interest earned on unexpended construction funds (net of related ( income taxes) is credited to construction work in progress. (Continued) 7 (. .

b [- l l NOTES TO FINANCIAL STATEMENTS, Continued [ 2. Summary of Significant Accounting Policies, contin nd: { (F) Reclassifications - Certain reclassifications have been made to the 1980 statements to conform to current classifications. There were no changes in net margins as previously reported.

3. Utility Plant:

( The original cost of utility plant at December 31, 1981 and 1980, was as follows: 1981 1980 { Ownership (1.6994%) in nucler.r plant S 8,200,800 $ 8,207,535 Transmission plant 4,128,617 1,797,494 [ General plant 512,535 12,841,952 263,995 10,269,024 Construction work in progress 366,569,553 79,791,324

                                                  $379,411,505                                        $90,060,348

4. Investments in Associated Organizations:

Investments in associated organizations at December 31, 1981 and ( 1980, consisted of the following: 1981 1980 Florida Rural Electric Cooperative Association S 10,786 $ 10,786 National Rural Utilities Cooperative [- - Finance Corporation (CFC): Membership 1,000 1,000 Capital Term Certificates (CTC) 224,150 111,685 ( Patronage Capital Certificates Other 145,055 6,145 132,751 23

                                                        $387,136                                            $256,245

{ E L F (Continued) L. 8 E

h [ NOTES TO FINANCIAL STATEMENTS, Continued {

4. Investments in Associated Organization, continued:

Seminole is obligated to purchase CTC's issued by CFC through 1984. Based on anticipated revenues, Seminole's future obligation for { purchase of CTC's will be as follows: and 1984, $974,000. 1982, $74,000; 1983, S80,000; [ These certificates mature beginning in 2025 and bear interest at the rate of 3% annually.

5. Long-Term Liabilities:

(A) Construction Payables - Construction payables consisted of unsecured obligations due vendors and contractors, accrued interest payable on loan advances used in construction, and { income taxes payable. Such amounts are generally financed through long-term borrowings; accordingly, construction payables are classified as long-term liabilities. (B) Long-Term Debt - At December 31, 1981 and 1980, long-term debt consisted of:

                                                                              '           9 First mortgage note payable to Federal Financing Bank (FFB), guaranteed by REA, due 2011, interest payable quarterly at 7.442% to 8.215%, first principal payment due in 1983                              $ 8,931,000 $ 8,931,000

[ First mortgage note payable to REA, due 2008, payable in quarterly installments of approxi-mately $4,400 including interest at 5%, ( $4,834 of principal due in 1982 260,247 264,847 First mortgage note payable to REA, due 2014, interest payable quarterly at 5%, ( $35,611 of principal due in 1982 3,729,000 2,887,000 First mortgage note payable to FFB guaranteed by REA, interest payable ( quarterly at 8.397% to 16.245%, due 1982 through 1984 (See below) 262,162,000 64,038,000 First mortgage note payable to REA, due 2015, [ interest payable quarterly at 5%, first principal payment due in 1983 50,000 - Pollution control revenue bonds, series 1981M, [ payable to the Putnam County Development Authority, guaranteed by CFC, due June 15, 1984, interest payable semi-annually at ( 9.25% 75,000,000 - (Continued) { 9 f u

l l l NOTES TO FINANCIAL STATEMENTS, Continued ( 5. Long-Term Liabilities, continued: I Pollution control revenue bonds, Series 1981V, payable to the Putnam County 1981 1980 Development Authority guaranteed by CFC, due October 1, 1984, interest payable semi-annually at 11.5% $ 50,000,000 $ - Advances from members, unsecured, with no interest or due date 248,800 248,800 l 1400,381 047 3 S76,369.647 In September 1979, Seminole received a commitment from FFB and REA for a loan in the amount of $1,104,388,000 to be used for long-term financing of the Seminole Unit 1, Unit 2 and related transmission facilities. The loan is guaranteed by REA. f Under the terms of the Loan Commitment Agreement, dated August 14, 1974, between FFB and REA, all advances are subject to the approval of REA. The maturity date of each advance may be not less than two years, nor more than seven years, after the date of the advance; provided, however, at t e option of the borrower, such maturity dates I may be extended for a period of 34 years from the end of the year in which advances were made. Interest on each advance shall be the respective rate established at the time of the advance, or upon extension shall be the rate established at that time. l The scheduled maturities of the $262,162,000 advanced from FFB at December 31, 1981, are as follows: 1982 - $ 31,744,000 1983 - S 70,946,000 1984 - $159,472,000 l It is anticipated that these amounts together with future additional borrowings from FFB will be extended to the maximum maturity dates. l The Putnam County Development Authority (Florida) issued two series of Pollution Control Revenue Bonds amounting to $125,000,000 for use by Seminole to finance the construction of certain pollution control facilities at the Seminole Plant Units No. I and 2. Seminole is required to pay an amount equal to the interest and principal amounts, when due, relating to the issues. Under the terms of the Trust Indenture relating to the bonds, the proceeds from the issues l are deposited with the Trustee, who disburses amounts as the various pollution control projects are constructed. l l (Continued) l 10 l

[ NOTES TO FINANCIAL STATEMENTS, Continued

5. Long-Term Liabilities, continued:

During 1981 interest income of approximately $7 million was earned [ on the unexpended proceeds of the pollution control revenue bonds and has been recorded (net of related income taxes) as a reduction of construction work in progress. The maturities of all long-term debt, after giving effect to the maximum extensions under current financing agreements for the five years subsequent to December 31, 1981, are presented below: Year ended December 31, Annual Maturities [ 1982 $ 40,445 L 1983 $ 55,718 1984 $125,152,210 1985 $ 165,403 ( 1986 $ 177,270 Substantially all assets are pledged as collateral for the above mentioned debt to the United States of America (REA and FFB) and [ CFC.

6. Return of Equity Restrictions:

Under provision of the agreements relating to the REA mortgage notes, until the total of equities and margins equals or exceeds forty ( 9ercent of total assets, the distribution of capital contributed by members is limited generally to twenty-five percent of patronage capital and margins of the next preceding year where, after giving ef fect to such distribution, the total equity will equal or exceed twenty percent of total assets, r 7. Note Payable - CFC Line of Credit: ( At December 31, 1981, there was $2,206,763 drawn under one of two lines of credit with CFC which together totaled $95 million. The ( interest rate is approximately the prime rate, as defined. Use of these funds is permitted only for REA approved projects.

8. Other Production Expenses:

Other production expenses consist of CR3 operating and maintenance costs, which represent Seminole's portion of all expenses incurred by ( Florida Power Corporation attributable to the operation of CR3 and properly recordable in accordance with the operating expense instruc-tions and in appropriate accounts as set forth in the Uniform System ( of Accounts. These payments are made to Florida Power Corporation in accordance with the Crystal River Unit #3 Participation Agreement, r 11

( { NOTES TO FINANCIAL STATEMENTS, Continued [

9. State and Federal Income Taxes:

( For 1980, Seminole was exempt from Federal income taxes under the provisions of Section 501(c)(12) of the Internal Revenue Code. For 1981, Seminole became subject to State and Federal income taxes because of the amount of nanmember income earned. Income taxes l' of $785,000 for 1981, af ter the application of investment tax credits of $394,000, have been charged to construction work in progress. Such taxes have reduced the interest earned on invest- [ ments which was credited to construction work in progress.

10. Deferred Charges:

At December 31, 1981, deferred charges included approximately

      $2,721,000 of unamortized debt expense. Additional amounts consist

[ of costs incurred in negotiating possible joint ownership partici-L pation in a Florida Power and Light Company nuclear unit presently under construction, costs associated with securing the supply and transportation of coal for the plannad Seminole generating units and ( other miscellaneous deferrals.

11. Retirement Plan:

[ Substantially all employees are covered by a pension plan which is funded through participation in a National Rural Electric Cooperative Association group plan. Pension costs were approximately $233,000 [ and $145,000 for the years ended December 31, 1981 and 1980, respec-tively. Information with regard to Seminole's portion of actuarial present value of vested and nonvested accumulated plan benefits and ( plan net assets available for benefits is not available.

12. Commitments:

Seminole has commitments for completion of Units 1 and 2 amounting to approximately $234,201,000, $173,069,000 and $67,324,000 for 1982, 1983 and 1984, respectively. In addition, Seminole anticipates the expenditure of approximately j

      $16 million during 1982 for transmission facilities to meet the

( needs of its member systems and setve to connect the proposed generating units to the Florida bulk power supply grid.

13. Litigation:

Certain lawsuits are pending against Seminole. In the opinion of management, all such matters are without merit or involve such amounts as would not have a materially adverse effect on the accom-panying financial statements. 12 j}}