ML20082Q301
| ML20082Q301 | |
| Person / Time | |
|---|---|
| Site: | Crystal River  |
| Issue date: | 12/31/1994 |
| From: | AFFILIATION NOT ASSIGNED |
| To: | |
| Shared Package | |
| ML20082Q295 | List: |
| References | |
| NUDOCS 9504280144 | |
| Download: ML20082Q301 (147) | |
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CITY OF BUSHNELL, FLORIDA ANNUAL FINANCIAL REPORT AND AUDITOR'S REPORT September 30,1994 1
i 9504280144 950424 PDR I ADOCK 05000302 i PDR 1
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CITY OF BUSHNELL, FLORIDA i
GENERAL PURPOSE FINANCIAL STATEMENTS FOR TIIE FISCAL YEAR ENDED SEPTEMBER 30,199; '
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l, CITY OF BUSHNELL, FLORIDA CITY COUNCIL AND OFFICIALS SEPTEMBER 30, 1994 i Mayor-Councilman . . . . . . . . . . . Joseph P. Strickland, Jr.
Vice-Mayor . . . . . . . . . . . . . . . . . . . . . Emory Guess Councilman . . . . . . . . . ... . . . . . . . . . . Dale Swain Councilman . . . . . . . . . . . . . . . . . . . Billy Williams Councilnan . . . . . . . . . . . . . . . . . . . Margaret Thies '
City Manager . . . . . . . . . . . . . . . . . . . Vicente Ruano ,
City Clerk' . . . . . . . . . . . . . . . . . . Judith C. Muller -
City Attorney . . . . . . . . . . . . . . . . James E. Wade, III ,
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CITY OF BUSENELL, FLORIDA GENERAL PURPOSE FINANCIAL STATENENTS SEPTEMBER 30, 1994 TABLE OF CONTENTS Pace Number INTRODUCTORY SECTION
} City Council and Officials i l
Table of Contents ii-iv FINANCIAL SECTION Independent Auditor's Report 1-2 General Purpose Financial Statements:
Combined Balance Sheet--All Fund Types and Account Groups 3-4 Combined Statement of Revenues, Expenditures, and Changes in Fund Balances--All Governmental Fund Types 5 Combined Statement of Revenues, Expenditures, and Changes in Fund Balances--Budget and Actual--General and Special Revenue Funds 6 l
Combined Statement of Revenues, Expenses, and l Changes in Retained Earnings--All Proprietary i l
Fund Types 7 l Combined Statement of Cash Flows-- All I Proprietary Fund Types 8 Notes to Financial Statements 9-23 Combining and Individual Fund Financial Statements:
General FuDd 1
Comparative Balance Sheets 24 '
Comparative Statement of Revenues, Expenditures and Changes in Fund Balance 25 ii
TABLE OF CONTENTS (Continued) Pace Number Comparative Statement of Revenues, Expenditures, .
and Changes in Fund Balances--Budget and Actual 26-27 l l
Statement of Revenues--Budget and Actual 28-29 Statement of Expenditures--Budget and Actual 30-34 Special Revenue Funds:
Comparative Balance Sheet 35 -
Comparative Statement of Revenues, Expenditures, ;
and Changes in Fund Balances 36 Statement of Revenues, Expenditures, and Changes '
in Fund Balance - Budget and Actual 37 i
Enterorise Funds ;
Combining Balance Sheet 38-40 ,
Combining Statement of Revenues, Expenses f and Changes in Retained Earnings (Deficit) 41 j l'
Combining Statement of Cash Flows 42-43 Schedule of Revenues, Expenses and Changes in Retained Earnings - budget and Actual Electric Fund 44 Schedule of Revenues, Expenses and Changes in Retained Earnings - Budget and Actual l Water Fund 45 ;
Schedule of Revenues, Expenses and Changes in Retained Earnings - Budget and Actual Sanitation Fund 46 Acency Fund Comparative Balance Sheet 47 Statement of Changes in Assets and Liabilities 48 j i
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TABLE OF CONTENTS (Continued) Pace Number i
SUPPLENENTARY INFORNATION AUDITOR'S CONPLIANCE REPORTS Independent Auditor's Report on Compliance Based on an Audit of General Purpose Financial Statements Performed in Accordance with Government Auditing Standards 49 -
AUDITOR'S INTERNAL CONTROL REPORTS Independent Auditor's Report on Internal Control I Structure in Accordance with Government Auditing
- Standards 50-51 Auditor's Letter to Management 52-53 :
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FINANCIAL SECTION
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t 3425 Lake Center Dr., Ste.1 David Logan, CPA PA Mount Dora, FL 32757
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Certified Public Accountant ) 383-35 %
Fax (904) 383-5441 I
INDEPENDENT AUDITOR'S REPORT Honorable Mayor and Members of the City Council City of Bushnell :
Bushnell, Florida P
I have audited the accompanying general purpose financial statements of the City of Bushnell, Florida, as of and for the year ended September 30,1994, as listed in the Table '
of Contents. These financial statements are the responsibility of the City of Bushnell's i management. My responsibility is to express an opinion on these financial statements based -
on my audit. ;
Except as discussed in the following paragraph, I conducted my audit in acc~ordance with !
generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of .
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a ;
reasonable basis for my opinion.
I was unable to examine sufficient evidential matter to determine if property, plant and ,
equipment and the provisions for depreciation recorded in the Enterprise Funds and the l fixed assets recorded in the general fixed assets account group are fairly presented at cost or estimated historical cost, due to insufficient detail within the City's property records.
In my opinion, except for the effects of such adjustments, if any, as might have been i determined to be necessary had I been able to determine the propriety of amounts recorded '
as property, plant and equipment and the provisions' for depreciation in the Enterprise Funds and the propriety of amounts recorded as fixed assets in the general fixed assets j account group, the general purpose financial statements referred to above present fairly in 'j all material respects, the financial position of the City of Bushnell, Florida, as of September '
30, 1994, and the results of its operations and the changes in financial position of its proprietary fund types for the year then ended, in conformity with generally accepted accounting principles.
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Honorable Mayor and Members '
of the City Council Page 2 My audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining, individual fund, and individual account group _
financial statements and schedules listed in the Table of Contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements !
of the City of Bushnell, Florida. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in my opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole.
Mfega<,c/A PA .
David Logan, CPA PA Mount Dora, Florida February 4,1995 l
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GENERAL PURPOSE FINANCIAL STATEMENTS I
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Exhibit 1 CITY OF BUSHNELL, FLORIDA (Psga 1 of 2)
COMBINED BALANCE SHEET--ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 1994 (WITS COMPARATIVE TOTALS FOR SEPTEMBER 30, 1993)
GOVERNMENTAL PROPRIETARY FIDUCIARY ACCOUNT GROUPS FUND TYPES FUND TYPE FUND TYPE GENERAL GENERAL TOTALS SPECIAL AGENCY FIXED LONG TERM (MEMORANDUM ONLY)
GEN xAL REVENUE ENTERPRISE FUND ASSETS DEBT 1994 1993 ASSETS AND OTHER DEBITS Assets:
Cash $ 442,538 $ 2,782 $ 394,041 $ 2,169 $ $ $ 841,530 $ 707,059 Receivables:
Taxes 32,112 32,112 40,813 Accounts (Net of allowance for uncollectibles - $2,000) 263,679 263,679 241,735 Intergovernmental -
51,548 Lue From Other Funds 21,678 17,470 39,148 15,059 Inventories, at Cost 548 76,904 77,432 68,215 Restricted Assets:
Cash and Investments 297,000 439,362 736,362 752,716 Property and Equipment, at Cost (Net, where applicable, of accumulated depreciation) 2,522,795 1,560,345 4,083,140 3,891,689 w Other Assets 11,602 11,602 12,219 Other Debits:
Amount to be Provided for Retirement of General Long-Term Debt 300,219 300,219 236,871 Total Assets and Other Debits $ 496,876 $ 299,782 $ 3,725,853 $ 2,169 $ 1,560,345 $ 300,219 $ 6,385,244 $ 6,017,924 I
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l See Accompanying Notes to Financial Statements I , , . . - _ . . . . . . , . - .- , , _
Eahibit l' CITY OF BUSRNELL, FLORIDA ( P&O3 2 of 2 ) -
COMBINED BALANCE SHEET--ALL FUND TYPES AND ACCOUNT GRCUPS SEPTEMEER 30, 1994 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1993)
GCVERNMENTAL PROPRIETARY FIDUCIARY ACCOUNT GROUPS FUND TYPES FUND TYPE FUND TYPE GENERAL GENERAL TOTALS SPECIAL AGENCY FIXED LONG TERM (MEMJRANDUM ONLY)
GENERAL REVENUE ENTERPRISE FUND ASSETS DEBT 1994 1993 LIABILITIES, ECUITY AND OTHER CREDITS Liabilities:
Accounts Payable $ 56,969 $ $ 104.544 $ $ $ $ 161,513 $ 249,344 Acerued Liabilities 12,360 12,009 24,369 19,454 Compensated Absences Payable 27,538 46,843 74,381 59,535 Due to other funds 17,470 17,470 15,059 Deferred Revenue 1,743 1,743 2,272 Deposits 875 1,500 2,169 4,544 5,124 Payable From Restricted Assets:
Customer Deposits 66,435 66,435 61,121 Accrued Interest Payable 7,483 7,483 8,578 Revenue Bonds Payable 35,000 35,000 30,000 Long Term Revenue Bonds Payable - i Series 1976 ( Net) 165,880 165,880 199,856 s Notes Payable 537,038 253,376 790,414 775,166 Total Liabilities 71,947 1,500, 973,397 2,169 - 300,219 1,349,232 1,425,509 Equity and Other Credits:
Contributed Capital 1,132,137 1,132,137 1,130,112 Investment in General Fixed Assets 1,560,345 1,560,345 1,394,046 Retained Earnings:
Reserved 330,444 330,444 370,965 Unreserved 1,289,875 1,289,875 1,033,369 Fund Balances:
Reserved 19,563 295,500 315,063 375,481 Unreserved 405,366 2,782 408,148 288,442 Total Equity and Other Credits 424,929 298,282 2,752,456 -
1,560,345 - 5,036,012 4,592,415 Total Liabilities, Equity and other credits $ 496,876 $ 2e9,782 $ 3,725,853 $ 2,169 $ 1,560,345 8 300,219 $ 6,385,244 $ 6,017,924 See Accompanying Notes to Financial Statements
CITY OF BUSHNELLo FLORIDA Exhibit 2
. COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES--ALL GOVERNMENTAL FUND TYPES
-YEARS ENDED SEPTEMBER 30, 1994 (WITH COMPARATIVE TOTALS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1993)
TOTALS SPECIAL (EEMORANDUM ONLY)
GENERAL REVENUE 1994 1993 Revenues:
Taxes S 469,928 $ $ 469,928 $ 407,466 Licenses & Permits 23,748 23,748 21,039 Intergovernmental 364,562 364,562 658,040 ,
Charges for Services 1,752 1,752 1,632. ]
Fines & Forfeits 44,038 44,038 53,826 Miscellaneous Revenue 45,032 30,780 75,812 71,841 Total Revenues 949,060 30,780 979,840 1,213,844 Expenditures General Government 294,711 294,711 208,491 Public Safety 458,547 458,547 417,381 Physical Environment 8,474 15,725 24,199 28,749 Transportation 279,891 279,891 132,729 Economic Environment 13,000 13,000 333,512 Culture & Recreation 217,257 217,257 '173,512
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Total Expenditures 1,271,880 15,725 1,287,605 1,294,374 Excess (Deficiency) of Revenues Over (Under)
Expenditures (322,820) 15,055 (307,765) (80,530)
Other Financing Sources .
Operating Transfers In 217,000 217,000 217,000 l Loan Proceeds- 150,000 150,000 -
Total Other Financing Sources 367,000 - 367,000. 217,000 Excess (Deficiency) of Revenues and other Financing Sources Over other Expenditures 44,180 15,055 59,235 136,470 Fund Balances October 1 380,696 283,227 663,923 527,617 Increase (Decrease) in Inventory Reserves 53 53 (164)
Fund Balances September 30 $ 424,929_ S 258,282 $ 723,211 S 66?,923 See Accompanying Notes to Financial Statements 5
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CITY OF BUSHNELL, FLORIDA Exhibit 3 COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN-FUND BALANCES--BUDGET AND ACTUAL -
GENERAL AND SPECIAL REVENUE FUNDS ,
YEAR ENDED SEPTEMBER 30, 1994 I GENERAL FUND SPECIAL REVENUE FUNDS l VARIANCE VARIANCE .
I FAVORABLE FAVORABLE BUDGETED ACTUAL (UNFAVORABLE) BUDGETED ACTUAL ( UNFAVORABLE)
Revenupas Taxes $ 443,850 $ 469,928 $ 26,078 $ $ $ -
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'Licsnsas and Permits 22,120 23,748 1,628 - i Intergovernmental 344,121 364,562 20,441 -
chargos for Services 1,700 1,752 52 -
t Finos and Forfeits 41,500 44,038 2,538 -
f Miscellaneous Revenue 111,150 45,032 (66,118) 27,600 30,780 3,180 ]
Total Revenues 964,441 949,060 (15,381) 27,600 30,780 3,180 t
Exp:nditures:
Osascal Government 292,710 294,711 (2,001) -
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Public Safety. 514,222 458,547 55,675 -
l Physical Environment 12,215 8,474 3,741 15,000 15,725 (725) i Transportation 278,527 279,891 (1,364) -
Economic Environment 12,000 13,000 (1,000) - >
Culture and Recreation 228,662 217,257 11,405 -
Total Expenditures 1,338,336 1,271,880 66,456- 15,000 15,725 (725) i Excess (Deficiency) of Revenues over (Under) Expenditures (373,895) (322,820) 51,075 12,600 15,055 2,455 !
Othsr Financing Sourcest .
Opsrating Transfers In 367,000 367,000 - -
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Excess (Deficiency) of Revenues f and other Financing Sources !
Over Expenditures (6,895) 44,180 51,075 12,600 15,055 2,455 Fund Balances October 1 235,373 380,696 145,323 283,227 283,227 -
Increase (Decrease) in Reserves 53 53 :
t Fund Balances September 30 $ 228,478 $ 424,929 $ 196,451 $ 295,827 $ 298,282 $ '2,455 I
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See Accompanying Notes to Financial Statements ;
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CITY OF BUSHNELL, FLORIDA Exhibit 4 COMBINED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS--ALL PROPRIETARY FUND TYPES ,
YEAR ENDED SEPTEMBER 30, 1994 (WITH COMPARATIVE TOTALS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1993) 1994 1993 Operating Revenues Charges for Services S 1,937,996 S 1,842,713 Operating Expenses:
Purchased Power 807,403 813,797 Salaries 194,008 184,808 Employee Benefits 91,921 80,769 Professional Services 48,592 41,372 Operating Supplies 31,187 53,637 Other Current Charges 84,031 64,271 Depreciation 140,842 112,490 Landfill 91,347 62,846 Total Operating Expenses 1,489,331 1,413,990 Operating Income 448,665 428,723 Non-Operating Revenue (Expense):
Interest Earned 24,167 22,188 Interest Expense and Fiscal Charges (39,847) (41,224)
Total Non-Operating Revenues (Expense) (15, 6820) (19,036)
Income Before Transfers 432,985 409,687 operating Transfers (Out) (217,000) (217,000)
Net Income 215,985 192,687 Retained Earnings, October 1 1,404,334 1,211,647 Retained Earnings, September 30 $ 1,620,319 S 1,404,334
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See Accompanying Notes to Financial Statements 7
l CITY OF BUSHNELL, FLORIDA Exhibit 5 COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES THE YEAR ENDED SEPTEMBER 30, 1994 (WITH COMPARATIVE TOTALS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1993)
ENTERPRISE 1994 1993 Cach Flows From Operating Activities:
Cash Received From Customers, including cash Deposits S 1,942,943 $ 1,830,865 Cash Paid to Suppliers (1,203,348) (1,098,403)
Cash Paid to Employees (187,306) (180,634)
Cash Deposits Returned to Customers (21,078) (20,578)
Net Cash Provided By Operating Activities 531,211 531,250 Cach Flows From Noncapital Financing Activities:
Capital contributions - Customers 2,026 7,281 Operating Transfers out (217,000) (217,000)
Received From (Paid To) Other Funds (538) 538 Net Cash Used In Noncapital Financing Activities (215,512) (209,181)
C2ch Flows From Capital and Related Financing Activities:
Loan Proceeds -
155,880 Purchase of Property and Equipment (165,991) (329,200)
Principal Paymen".s (67,852) (199,099)
Interest Paid (40,942) (43,413)
Net Cash Provided By Capital and Related Financing Activities (274,785) (415,912)
Cach Flows From Investing Activities:
Receipt of Interest 24,168 22,188 Net Cash Provided By Investing Activities 24,168 22,188 Nat Increase (Decrease) In cash 65,082 (71,655)
Cach, October 1 758,321 839,976 l Cash, September 30 S 833,403 S 768,321 R3 conciliation of Operating Income to Net Cash Provided By Operating Activities:
Operating Income S 448,665 S 428,723 Adjustments to Reconcile Operating Income to Net Cash Provided By Operating Activities:
Depreciation Expense 140,842 112,490 Decrease in Accounts Receivable (21,446) (38,984)
(Increase) in Inventory (9,184) 7,369 (Increase) in Accounts Payable (42,568) 18,235 Increase in Accrued Liabilities 3,852 (6,848) l (Decrease) in Accumulated Compensated Absences 5,736 3,707 i Net (Decrease) in Customer Deposits 5,314 6,558 Total Adjuntments 82,546 102,527 Nst Cash Provided by Operating Activities S 531,211 S 531,250 See Accompanying Notes to Financial Statements 8
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Il NOTT3 TL ?TNANCIAL STATEMENTS I
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l CITY OF BUSHNELL, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1994 NOTE 1
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES The City of Bushnell, Florida was incorporated in 1957. The City operates under a council-manager form of government and provides services to its residents in many areas, including public safety (police and fire), highways and streets, utilities, sanitation, culture-recreation, public improvements, and general administrative services.
The financial statements of the City of Bushnell, Florida have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting princi-ples. The more significant of the City of Bushnell, Florida's accounting principles are described below:
A. Reporting Entity In evaluating how to define the government for financial reporting purposes, management has considered all potential component units.
The decision to include a potential component unit in the reporting entity was made by applying the criteria set forth in Statement No.
14 of the Governmental Accounting Standards Board - The Financial Reportino Entity. The definition of the reporting entity is based primarily on the notion of financial accountability. The city is' financially accountable for the organizations that make up its legal entity. It is also financially accountable for legally separate organizations if its officials appoint a voting majority of the organization's governing body and either it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the City. The City may also be financially accountable for governmental organizations that are fiscally dependent on it. Based upon the application for these criteria, the following is a brief review of each potential component unit addressed in defining the city's reporting entity:
Evercreen Cemeterv Fund:
A Board of Trustees was created by City ordinance and is appointed by the City Council to administer the affairs of Evergreen Cemetery. One member of City Council must be on the osard of Trustees. The Board is authorized to sell cemetery lots and to invest proceeds which are legally restricted by ordinance. The principal is not subject to expenditure and the interest can be used only for operations, maintenance and improvement of the cemetery. The Evergreen Cemetery is blended revenue fund.
into the City's reporting entity within a special B. Fund Accounting The City uses funds and account groups to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain govern-ment functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. Funds are classified into three categories governmental, proprietary and fiduciary. Each category, in turn, is divided into separate " fund types".
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CITY CF CU HNELL, FLORIDA NOTE 3 TO FINANCIAL STATEMENT 3 SEPTEMBER 30, 1994 NOTE 1
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (Continued) I Governmental Funds are used to account for all or most of a government's general activities.
Governmental funds of the City are as follows:
General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial !
I resources, except those required to be accounted for in another fund. i special Revenue Fund - The Special Revenue Fund is used to account for the proceeds of specific revenue sources (other l than expendable trusts, or for major capital projects) that i are legally' restricted to expenditures for specific purposes. ;
Proprietary funds are used to account for activities similar to those found in private sector, where the determination of net income is necessary or useful to sound financial administration.
Froprietary funds of the city are as follows:
Enterprise Funds - The Enterprise Funds are used to account for activities that are operated in a manner similar to private businesses where the cost of providing goods and services are primarily recovered through user charges.
Fiduciary funds are used to account for assets held on behalf of outside parties, including other governments,' or on behalf of other funds within the government. Agency funds generally are used to ace unt for assets that the government holds on behalf of others as their agent.
An account group, unlike a fund, is a financial reporting device designed to provide accountability for certain assets and .11abili-ties that are not recorded in the funds because they do not directly affect net expendable available financial resources.
Account Groups maintained by the City are as follows:
General Fixed Assets - Accounts for property and equipment not used in proprietary fund operations or accounted for in trust funds.
l General Long-Term Debt - Accounts for unmatured principal of l
long- term general obligation indebtedness that is not a specific liability of a Proprietary or Fiduciary Fund.
C. Basis of Accounting The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet.
Operating statements of these funds present increases (i.e.,
revenues and other financing sources) and decreases (i.e. , expenses and other financial uses) in net current assets.
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CITY CF CUZHNELL, FLORIDA NOTE 3 TO FINANCIAL CTATEMENTS SEPTEMBER 30, 1994 NME 1
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
All proprietary funds are accounted for on a flow of economic l resources measurement focus. With this measurement focus, all l assets and all liabilities associated with the operation of these funds are included on the balance sheet. Fund equity (i.e., net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund-type operating statements i present increases (e.g., revenues) and decreases (e.g., expenses) l in not total assets.
The modified accrual basis of accounting is used by all govern-mental fund types and agency funds. Under the modified accrual i basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available).
" Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Billing cycles of the proprietary funds which overlap September 30 are pro-rated based upon meter reading dates. j Expenditures are recorded when the related fund liability is incurred. Principal and interest on general long-term debt are recorded as fund liabilities when due.
The following revenues are considered to be susceptible to accrual:
Cigarette Tax State Revenue Sharing Proceeds Mobile Home License Tax Alcoholic Beverage License Tax Half Cent Sales Tax i Property Taxes Franchise Taxes Utility Service Taxes Interest Revenue {
I The accrual basis of accounting is utilized by proprietary fund l types. Under this method, revenues are recorded when earned and expenses tcw recorded at the time liabilities are incurred.
The City reps.ts deferred revenue on its combined balance sheet. I Deferred revenues arise when a potential revenue does not meet both the " measurable" and "available" criteria for recognition in the current period. Deferred revenues also arise when resources are received by t. 's government before it has a legal claim to them, as when grant moraes are received prior to the incurrence of qualify-ing expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the government has a legal claim to the resources, the liability for deferred revenue is removed from the combined balance sheet and revenue is recognized.
D. Budgets Budgets are adopted on a basis consistent with generally accepted accounting principles, except that the provision for depreciation expense is not included in the budget of the proprietary funds.
Annual appropriated budgets are adopted for the general fund.
Annual appropriations lapse at fiscal year end.
Encumbrance accounting, under which purchase orders, contracts, and other commitments are recorded as expenditures in order to reserve that portion of the applicable appropriation is not employed by the City for budgetary purposes.
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CITY CF BUIENELL, FLORIDA NOTES TO FINANCIAL STATEMENTS r SEPTEMBER 30, 1994 l
NOTE 1
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (Continued) [
E. Cash and Cash Equivalents cash includes amounts in demand deposits as well as short-term investments with a maturity date within three months of the date ,
acquired by the government. ;
F. Short-Tern Interfund Receivables /Payables During tne course of operations, numerous transactions occur .
between individual funds for goods provided or services rendered. l These receivables and payables are classified as "due to/from other funds" on the balance sheet.
G. Inventory ,
Inventories held by the Enterprise Funds are stated at cost or f market, whichever is lower. ;
H. Prepaid Items i Payments made to vendors for service that will benefit periods beyond September 30, 1994 are recorded as prepaid items.
I. Property, Plant and Equipment Property, plant and equipment used in governmental fund type operations are eccounted for in the General Fixed Assets Account Group, rather than in governmental funds. No depreciation has been provided on such propert-r, plant and equipment.
All property, plant and equipment are valued at historical cost or estimated historical cost if actual historical cost is not 5 available. Donated property, plant and equipment are valued at '
their estimated fair value on the date donated.
The City has adopted the accounting policy of not capitalizing
" infrastructure" general fixed assets (road, bridges, curbs and ;
gutter, streets and sidewalks, drainage system, lighting systems and similar assets that ate immovable and of value only to the !
City). :
Depreciation is provided in the enterprise fund in amounts ,
sufficient to relate the cost of the depreciable assets to operations over their estimated service lives on the stra*ght-line basis. The service lives by type of asset are as follows:
Useful Life In Years ,
Electric Utility Fund Distribution Plant 25-40 years Structures and Improvements 32 years Equipment 6-12 years Investment in Crystal River #3 Nuclear Plant 28 years Water Utility Fund ;
Distribution Plant 25-101 years Building 50 years Equipment 25 years Sanitation Fur' Equipment 7 years 12 I i
CITY OF BUSHNELL, FLORIDA NOTES 30 FINANCIAL STATEMENTS SEPTEMBER 10, 1994 NOTE 1
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
J. Bond Discounts / Issuance Costs Bond discounts and issuance costs for proprietary fund types are deferred and amortized over the term of the bonds using a straight-line amortization method which produce results not significantly different from the interest method. Bond discounts are presented as a reduction of the face amount of bonds payable whereas issuance costs are recorded as deferred charges.
K. Compensated Absences Vested or accumulated vacation leave that is expected to be liquidated with expendable available financial resources is reported as an expenditure and a fund liability of the governmental fund that will pay it. Amounts of vested or accumulated vacation leave that are not axpected to be liquidated with expendable available financial resources are reported in the general long-term debt account group. No expenditure is reported for these amounts.
Vested or accumulated vacation leave of proprietary funds is recorded as an expense and liability of those funds as the benefits accrue to employees. In accordance with the provisions of Statement of Financial Accounting Standards No. 43, accounting for compen-sated absences, no liability is recorded for nonvesting accumulat-ing rights to receive sick pay benefits. Hc: ever, a liability is recognized for that portion of accumulating sick leave benefits that is estimated will be taken as " terminal leave" prior to retirement.
L. Interfund Transactions Quasi-external transactions are accounted for as revenues, expenditures or expenses. Transactions that constitute reimburse-ments to a fund for expenditures / expenses initially made from it that are properly applicable to another fund, are recorded as l
expenditures / expenses in the reimbursing fund and as reductions of expenditures / expenses in the fund that is reimbursed.
All other interfund transactions, except quasi-external transac-tions and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as operating transfers.
M. Grants - Proprietary Funds Unrestricted grants, entitlements or shared revenues received are reported as non-operating revenues. Such resources externally restricted for capital acquisitions or construction are reported as contributed capital. Operating expenses include depreciation on all depreciable fixed assets (including those financed by grants).
N. Water Line Extension Charges Water line extension charges are made to customers to cover the full cost of the addition. Such charges are recorded as an equity contribution. Costs of the extension are reported as property and equipment and depreciated over the estimated useful life of the asset.
13
CITY CF BU_:HNELL, FLORIDA NOTES TO FINANCIAL STATEMENT 3 SEPTEMBER 30, 1994 NOTE 1
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
O. Fund Equity Contributed capital is recorded in proprietary funds that have received capital grants or contributions from developers, customers or other funds. Reserves represent those portions of fund equity not appropriable for expenditures or legally segregated for a specific future use.
P. Total Columns on Combined Statements--Overview Total columns on the combined statements - overview are captioned Memorandum Only to indicate they are presented only to facilitate financial analysis. Data in these columns are not comparable to a consolidation. Interfund transactions are not eliminated.
Q. Comparative Data comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the government's financial position and operations. However, comparativo data have not been presented in all statements because their inclusion would make certain state-ments unduly complex and difficult to understand.
NOTE 2 LEGAL COMPLIANCE - BUDGETS Prior to October 1, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing October 1. The operating budget includes proposed expenditures and the means of financing them. After submission of the proposed operating budget, workshops are held and public hearings are conducted to obtain taxpayer comments. Prior to October 1, the budget is legally enacted through passage of a resolution. Any transfers of budgeted amounts between departments within any fund and any revisions that alter the total expenditures of any fund must be approved by the Council.
Budgeted amounts presented agree with the original adopted budget as amended during the year by City Council.
NOTE 3 DEPOSITS AND INVESTMENTS Deposits - At year end, the carrying amount of the city's deposits was
$1,280,213 and the bank balance was $1,295,534. All of the bank balance was covered by federal depository insurance or by a state collateral insurance pool held by the Treasurer, State of Florida, in the Public Deposit Security Trust Fund established in accordance with Chapter 280 of the Florida Statutes.
Investments - The City's investments are categorized as either (1) insured or registered or for which the securities are held by the City or its agent in the city's name, (2) uninsured and unregistered for which the securities are held by the broker's or dealer's trust department or agent in the city's name, or (3) uninsured and unregistered for which the securities are held by the broker or dealer, or by its trust department or agent but not in the government's name.
14
CITY OF BUSHNELL, FLORIDA NOTES TO FZNANCIAL STATEMENTS SEPTEMBER 30, 1994 NOTE 3 DEPOSITS AND INVESTMENTS (Continued)
Cateoories Carrying Market 1 2 3 Amount Value Certificates of Deposits $297,000 $ - S - $297,000 $297,000 NOTE 4 RECEIVABLES Under Florida law, the assessment of all properties and the collection of all county, municipal and school board property taxes are consoli-dated in the offices of the County Property Appraiser and the County Tax Collector. The laws of the State regulating tax assessment are also designed to assure a consistent property valuation method state wide. State statutes permit municipalities to levy property taxes at a rate of up to 10 mills. The millage rate assessed by the city for the fiscal year ended September 30, 1994, was 2.70.
All property is assessed according to its fair market value on January 1 of each year. Each assessment roll is submitted to the Executive Director of the State Department of Revenue for review to determine if '
~~
the rolls meet all of the appropriate requirements of State statues.
The current year taxes for the fiscal year, beginning October 1, are billed in the month of November and are due no later than March 31.
On April 1, all unpaid amounts become delinquent and are subject to 4 interest and penalties. Discounts are allowed for early payment as follows:
November 4%
December 3%
January 2%
February 1%
March 0%
Delinquent taxes on real property bear interest of 18% per year. On or prior to June 1 of the following tax year, certificates are sold for all delinquent taxes on real property. After sale, tax certificates bear interest of 18% per year or at any lower rate bid by the buyer.
Application for a tax deed on any unredeemed tax certificates may be made by +ha cartificate holder after a period of two years.
Delinquent taxes on personal property bear interest of 18% per year until the tax is satisfied either by seizure and sale of the property or by the five year statute of limitations.
The amount of delinquent or uncollected property taxes at year end was immaterial. The City's Tax Calendar is as follows:
Valuation Date: January 1 Levy Dates November 1 Due Date: March 31., succeeding Year Lien Date April 1, Succeeding Year NOTE 5 BOND SERVICE REQUIREMENTS / RESTRICTED ASSETS NUCLEAR DECOMMISSIONING - The Florida Public Service Commission requires utilities to set aside monies to pay the estimated future cost of dismantling or decommissioning nuclear power plants. The City has set aside such monies in a custody account with a third party trustee.
15
CITY CF BUIHNELL, FIARIDA NOTE 3 TO FINANCIAL STATENENTS SEPTEMBER 30, 1994 NOTE 5 BOND SERVICE REQUIREMENTS / RESTRICTED ASSETS (Continued)
UTILITIES SYSTEM REVENUE BONDS SERIES 1976 As of September 30, 1994, bond service requirements are current. The ;
following is a summary of the restricted assets related to the ,
Utilities System Revenue Bonds Series 1976.
Revenue Bonde Debt Service - The City deposits cash monthly into e a separate account to fund upcoming principal and interest payments in accordance with the bond resolution. Such cash and investments are reported as restricted assets.
Renewal and Replacement - The bond resolution requires a monthly deposit for renewal and replacement (extensions, enlargements or additions to, or the replacement of capital assets of the facili-ties and emergency repairs thereto or unusual costs of operation and maintenance). The required monthly contribution is computed t at 1/12 of 9 percent of the prior year's gross revenue, however, r no further deposits are required when the balance on hand equals 10 percent of the outstanding principal balance of the revenue bonds.
CUSTOMER DEPOSITS ,
Customer deposits have been restricted to indicate ~the amount is not available for the financing of current utility operations.
NOTE 6 PROPERTY, PLANT AND EQUIPMENT A summary of changes in general fixed assets follows:
BALANCE BALANCE 10/1/93 ADDITIONS DISPOSALS 9/30/94 Land S 283,909 $156,754 S 750 $ 439,913 Buildings 166,587 6,660 -
173,247 Improvements 287,856 8,496 944 295,408 Machinery and Equipment 655,294 124,02]_ 127,540 651,777
$1,393,646 $295,933 $129,22 S1,560,345 A summary of Proprietary Fund Type property v1 equipment at September 30, 1994 follows:
ELECTRIC WATER UTILITY UTILITY SANITATION FUND FUND FUND TOTAL Land S 2,300 $ 18,090 $ -
S 20,390 Distribution Plant 1,143,859 725,550 -
1,PA9,409 Buildings 214,487 134,435 -
346,022 Equipment 206,967 768,410 190,486 1,165,863 Crystal River #3 Investment 312.209 - - 312,209 1,879,822 1,646,485 190,486 3,716,793 >
Accumulated Depreciation (658,465) (431,452) (104,081) (1,193,998) ,
$1,221,357 $1,215,033 $ 86,405 S 2,522,795 16
CITY CF EUZENELL, FIARIDA '
NOTE 3 TO FINANCIAL STATEMENTJ ;
SEPTEMBER 30, 1994 NOTE 7 IDNG-TERM DEBT The following is a summary of the bonds payable and general long-term debt:
Proorietary Fund Lono-Term Debt t I
Utilities System Revenue Bonds Series 1976 - $500,000 The 1976 bonds are coupon bonds in denominations of $5,000 each and are collateralized by a pledge of the gross revenues of the utilities system.
The bond liability is recorded according to use of the original -
proceeds as follows - Electric Utility Fund 86 percent; Water Utility Fund 14 percent. Combined bond maturities and interest rates are as follows:
TOTAL MATURITY COUPON PRINCIPAL -
APRIL 1 RATE AMOUNT Term Bonds 1995 7.3% 35,000 1996 7.3% 35,000 1997 7.3% 40,000 ,
1998 7.3% 45,000 WATER ELECTRIC I 1999 7.3% 50,000 FUND FUND Total Principal Balance outstanding $205,000 $28,700 $176,300 Less: Unamortized Discount and Issue Costs (4,120) (574) (3,546)
S200,880 $28,126 $172,754 Total Remaining Interest S 40,333 $ 5,647 5 34,686 The term bonds due in 1999 are subject to mandatory redemption by lot in the amounts listed above.
Water Fund - Florida Municipal Power Acency - Initial Pooled Loan Proiect The City has entered into a financing agreement with the Florida Municipal Power Agency (FmPA). Interest is payable monthly at a variable rate (currently 3.0% plus a 1.25% administration fee) and principal is due as follows:
Year Ended Electric Water Total September 30 Fund Fund Principal 1995 S 21,838 $ 13,162 S 35,000 !'
1996 21,838 13,162 35,000 1997 26,205 13,795 40,000 1998 26,205 13,795 40,000 1999 26,205 18,795 45,000 i 2000 30,573 19,427 50,000 l 2001 30,573 19,427 50,000 l 2002 153 14,847 15,000 2003 15,000 15,000 ,
2004 20,000 20,000 2005 20,000 20,000 2006 20,000 20,000 .
2007 20,000 20,000 l 2008 25,000 25,000 1 2009 25,000 25,000 l 2010 25,000 25,000 1 2011 26,000 26,000 l
$183,590 $322,410 S506,000 17
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CITY CF BUZENELL, FLORIDA NOTES 'to FINANCIAL STATEMENTS SEPTEMBER 30, 1994 I
I '
NOTE 7 LONG-TERN DEBT (Continued)
Water Fund Mortoace Note Pavable - Bennie Harrison The following is a schedule of the mortgage note payable to Bennie Harrison e Remaining Prin' cidal Interest 1995 $1,000 $ . 13'O 1996 1,000 65
$2,000 $ 195 l Principal and interest (at 61/2%) are due annually on January 31. The balance is collateralized by Water Fund land. ,
PRINCIPAL BALANCE GENERAL LONG-TERM DEBT 9/30/94 i Note Payable - Bank, unsecured, due in monthly payments of $1,597, including -
interest at 5%. S148,095 i
Accumulated unpaio vacation & sick pay accrual 46,843 Capital lease obligation, collateralized by a fire truck (with a cost carrying value l of $123,000), due in semi-annual installments y of $8,771 which includes interest at 7.2% 105,281 S300,219 l During the year ended September 30, 1994, the following changes '
occurred in the liability reported in the general long-term debt ;
account group:
BALANCE PRINCIPAL BALANCE !
10/1/93 ADDITIONS REDUCTION 9/30/94 Note S 70,930 $148,095 $70,930 $148,095 ,
Notes Payable 1,954 -
1,954 -
Accumulated unpaid vacation and sick ;
pay accrual 37,733 9,110 -
46,843 Capitalized lease obligations 126,254 - 20,973 105,281
$236,871 S157,205 $93,857 $300,219 [
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CITY CF BU;ENELL, FLORIDA NOTE 3 TO FINANCIAL STATEMENT 3 SEPTEMBER 30, 1994 NOTE 7 LONG-TERM DEBT (Continued)
The following is a schedule of the maturity of the Note Payable - Banks Year Ended September 30 Interest Princioal Total Payments 1995 $ 7,129 $ 12,029- $ 19,158 1996. 6,514 12,644 19,158 1997 5,867- 13,291 19,158 1998 5,187 13,971 19,158 1999 4,472 14,686 19,158 2000 3,721 15,437 19,158 ~
2001 2,931 16,227 19,158 2002 2,101 17,057 19,158 2003 1,228 17,930 19,158 2004 325 14,782 15,107
$39,475 $148,054 $187,529 The following is a schedule of maturity of capital leases entered into by the City:
Year Ended September 30 Interest Principal Total Payments 1995 $ 7,401 $ 10,140 $ 17,541 1996 6,657 10,884 17,541 1997 5,860 11,681 17,541 1998 5,003 12,538 17,541 1999 4,085 13,456 17,541 2000-2002 6,042 46,582 52.624
$35,048 $105,281 $140,329 NOTE 8 COMPENSATED ABSENCES Accumulated unpaid vacation and sick pay benefits are accrued when incurred in proprietary funds. Such amounts are not accrued in govern-mental funds. At September 30, 1994, the general long-term debt group of accounts included $46,843 in vacation and sick pay.
Accumulated unpaid vacation and sick pay in Enterprise Funds are as follows:
9/30/94 9/30/93 Electric Utility Fund $14,413 $11,857 Water Utility Fund 10,365 6,576 Sanitation Fund 2,759 1,369
$27,537 $21,802 City policy as of September 30, 1994, is to allow up to a maximum accumulation of 1,040 hours4.62963e-4 days <br />0.0111 hours <br />6.613757e-5 weeks <br />1.522e-5 months <br /> of sick leave. Upon voluntary termination 50 percent of the accumulated hours are paid to the employee (75 percent for long-term employees with twenty or more years of full-time service). The City accrues 100 percent of unpaid vacation pay and 50 percent of accumulated unpaid sick pay at the employee's current pay rate.
19
CITY CF BUSENELI., FI4RIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1994 NOTE 9 ELECTRIC POWER AGREEMENTS Crystal River Power Unit #3 Participation Agreement:
The City is a participant in an agreement with Florida Power Corpora-tion which was entered into on July 31, 1975. Under terms of the agreement, the City acquired a 0.0388% ownership interest and genera-tion entitlement share in the nuclear steam electric generating unit.
Participants are entitled to energy output of the unit based upon their respective generation entitlement share.
Florida Municipal Power Agency:
The City is a member of the Florida Municipal Power Agency (FmPA) which is a joint action agency formed by a number of Florida municipalities for the purpose of providing electric power alternatives for its members.
FMPA is a nonprofit, joint action agency. Formed pursuant to Florida Statutes, FMPA has the authority to undertake joint power supply projects and to issue tax-exempt bonds or other obligations to finance or refinance the costs of such projects.
Due to the diverse needs of Florida's municipal electric systems, FMFA was established as a project-oriented agency. Under this structure, each member has the option whether or not to participate in a project.
Members may choose to participate in more than one project; however, each of the Agency's five projects is independent from the others, and no revenues or funds available from one project can be used to pay the costs of any other project.
The City has elected to participate in the "All Requirements Project",
which supplies all the City's power requirements including load regula-tion. In addition, the City has elected participation in the " Pooled Loan Project" in which FMPA issues debt with members,.then loans the money to individual systems to finanen utility related projects.
NOTE 10 PENSION FUND All full-time employees participate in the State of Florida Retirement System, a multiple employer Public Employee Retirement System (PERS).
The Florida Retirement System provides retirement, disability, or death benefits to 126,763 retirees statewide and has 552,581 members. The Summary Plan Description of the Florida Retirement System should be referred to for a complete plan description.
The payroll for employees covered by the System for the year ended September 30, 1994 was approximately $521,908; the City's total payroll was approximately $562,041.
Regular class employees, which includes all employees except law enforcement officers and firefighters who have attained age 62 completing 10 or more years of service, or regardless of age completing 30 years of service are eligible for retirement benefits. The calcula-tion of monthly benefits is based on average final compensation (AFC) as defined in the plan. Retirement benefits range from 1.60% of AFC per year of service to 1.68% of AFC based upon retirement age or length of service.
Special risk class employees, which includes law enforcement officers and firefighters who have attained age 55 completing 10 years of special risk service, or age 52 with 25 years special risk service, or 25 years continuous special risk service regardless of age, or 30 years of any creditable service regardless of age are eligible for retirement 20
CITY CF BUZHNELL, FLORIDA NOTES TO FINANCIAL STATEMENT 3 SEPTEMBER 30, 1994 NOTE 10 PENSION FUND (Continued) l benefits. The calculation of monthly benefits is based on AFC and range from 2.00% per year of service to 3.00% of AFC based upon service period.
Active employees who become disabled and have completed the length of service as defined in the plan receive a minimum benefit of 42% of AFC for in-line-of-duty and 25% of AFC for regular disability.
If an active employee dies in the line-of-duty, a member's spouse will receive a monthly benefit of one-half the member's monthly salary at death for his or her lifetime until remarriage. If the spouse dies without remarrying, the benefit will continue to the memoer's children until the youngest reaches age 18, or until married, if earlier. If employee is terminated by death other than in-line-of-duty before completion of 10 years of service, the designated beneficiary will receive a refund of any retirement contributions. If the member has 10 or more years of service, the surviving spouse or eligible beneficiary may receive a refund of contributions paid by the member or a lifetime monthly benefit calculated as though the member had retired on the date of death.
Retirement coverage is employee non-contributory. Employers pay all contributions. Employer contributions effective January 1, 1993 were j 17.27% for regular members, 20.55% for senior management, and 27.14% )
for special risk members, and totalled S107,214 for the fiscal year ended September 30, 1994.
The " pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases, estimated to be payable in the future as a result of employee service to date. The measure is the actuarial present value of credited projected benefits and is intended to help users assess the System's funding status on a going-concern basis, assess progress comparisons among PERS and employers. The System does not make separate measurements of assets and pension benefit obligation for individual employers. The pension benefit obligation at July 1, 1993 (the date of the latest actuarial valuation) for the System as a whole was $39.7 billion. The System's net assets available for benefits on that date (valued at market) were $29.1 billion, leaving an unfunded pension benefit obligation of $10.6 billion. The city's fiscal year 1994 contribution as a percent of total contributions required of all participating entities has not been determined.
Ten year historical trend information presenting progress in accumulat-ing sufficient assets to pay benefits when due is presented in the PERS June 30, 1993 Annual Report.
NOTE 11 OTHER DISCLOSURES Deficit Retained Earninos of Individual Funds: None e
Seament Infonpation for Enterprise Funds:
The City maintains three enterprise funds which provide electric, water and sanitation services. Segment information as of September 30, 1994 is as follows:
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CITY CF BUSENELL, FLORIDA NOTES TO FINANCIAL STATENENTS SEPTEMBER 30, 1994 i
NOTE 11 OTHER DISCIASURES (Continued)
ELECTRIC WATER UTILITY UTILITY SANITATION FUND FUND FUND TOTAL I Operating Revenues $1,443,086 $ 280,391 S214,519 S1,937,996 f
Depreciation 72,912 51,690 16,240 140,842 Operating Income (Loss) 351,699 81,087 15,879 448,665 Operating Transfers i In (Out) (187,000)_ (20,000) (10,000) (217,000) l Net Income (Loss) 162,610 47,606 5,769 215,985 j Current Year capital contributions - 2,026 - 2,026 l Total Assets 2,158,483 1,400,540 166,e30 3,725,853 :
Net Working capital 357,759 129,013 60,000 546,772 i Bonds Payable - Net [
Payable from i Operating Revenues 97,906 15,938 -
113,844 [
Total Equity S1,603,651 $1,023,678 $125,127 $2,752,456 7 Interfund Receivable /Pavables ,
Receivable Pavable i
General Fund S S
Water Utility Fund 17,470 -
Electric Utility Fund -
$17.470 ;
$17,470 $17.470 Interfund Transfers: I 1H QUI ceneral Fund $217,000 $ -
Electric Fund -
187,000 !
Water Utility Fund -
20,000 ,
Sanitation Fund - 10,000 ;
i
$217,000 $217,000 !
Allowances for Doubtful Accounts: )
Electric Utility Fund S 1,000 Water Utility Fund 500 Sanitation Fund 500 S 2,000 i
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k CITY CF BUIENELL, FLORIDA i NOTE 3 TO FINANCIAL CTATENENT3 SEFTENBER 30, 1994 ,
i NOTE 11 OTRER DISCLOSURES (Continued) .
Excess of Expenditures Over Acoropriations in Individual Funds:
- BUDGET ACTUAL VARIANCE Evergreen Cemetery Fund S 15,000 15,725 $
S (725) i Excess of Ooeratino Exoenses Over Anoropriations in Individual Funds:
Electric Fund $1,023,984 S1,091,387 S (67,403)
Water Fund 155,804 155,804 (43,500)
Sanitation Fund 175,448 198,640 (23,192) i S1,355,236 S1,489,33J Sgg) ;
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COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS
V.
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GENERAL FUND i
I The General Fund is used to account for resources tradition- .I ally associated with governments which are not required to be accounted for in another fund. The General Fund receives a ,
greater variety and number of taxes than any other fund. The City of Bushnell, Florida General Fund directly services general long term debt.
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CITY OF BUSHNELL, FLORIDA A-1 GENERAL FUND COMPARATIVE BALANCE SHEETS SEPTEMBER'30, 1994 AND 1993 ,
lji!jiL4 1993 .
ASSETS -!
Cach $ 442,538 $' 386,010 Utility Taxes and Franchise Fees Receivable 32,112 ;40,813
'Lua From Other Governments 21,678 51,548 ,
'Dum From Other Funds 538 Inventories, at Cost 548 495 Total Assets S 496,876 $ 479,404 LIABILITIES AND FUND BALANCES Liabilities:
Accounts Payable $ 56,969 $' 84,158 Accrued Liabilities 12,360 11,298- ,
Deposits 875 980 .
t Deferred Revenue 1,743 2,272 ;
Total Liabilities 71,947 98,708 Fund Balances: >
Reserve for Petty:. Cash 650 650 Reserve for Inventories 548 495 '
Reserve for Drug Interdiction 18,365 43,948 !
Reserve for Transportation - 48,336 Fund Balance--Unreserved 405 366. 287,267 Total Fund Balances 424,929 380,696 }
Total Liabilities and Fund Balances S 496,876 $ 479,404 l I'
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- CITY OF BUSHNELL, FLORIDA A-2 GENERAL FUND COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES YEARS ENDED SEPTEMBER 30, 1994 AND 1993 1994 J3jL Revenues
l Taxes S 469,928 S 407,466 Licenses and Permits 23,748 21,039 Intergovernmental 364,562 372,417 Charges for Services 1,752 1,632 Fines and Forfeits 44,038 53,826 Miscellaneous Revenue 45,032 45,126 Total Revenues 949,060 901,506 Expenditures General Government 294,711 208,491 Public Safety 458,547 417,381 Physical Environment 8,474 9,964 Transportation 279,891 132,729 Economic Environment 13,000 11,000 Culture and Recreation 217,257 173,512 Total Expenditures 1,271,880 953,077 Excess (Deficiency) of Revenues Over (Under) Expenditures (322,820) (51,571)
Other Financing Sources:
Operating Transfers In:
Electric Utility Fund 187,000 187,000 Water Utility Fund 20,000 20,000 Sanitation Fund 10,000 10,000 Loan Proceeds 150,000 -
Total Other Financing Sources 367,000 217,000 Excess (Deficiency) of Revenues and other Financing Sources Over (Under) Expenditures 44,180 165,429 Fund Balances October 1 380,696 215,431 Increase (Decrease) in Reserves 53 (164)
Fund Balances September 30 $ 424,929 $ 380,696 25 u
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A-3 CITY OF BUSHNELL, FLORIDA (Prge 1 cf 2)
GENERAL FUND COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES--BUDGET AND ACTUAL YEARS ENDED SEPTEMBER 30, 1994 AND 1993 VARIANCE VARIANCE 1994 FAVORABLE 1993 FAVORABLE BUDGETED ACTUAL fUNFAVORABLE) BUDGETED ACTUAL fUNFAVORABLE)
Revenues:
Taxes S 443,850 $ 469,928 $ 26,078 $ 380,252 $ 407,466 $ 27,214 Licenses and Permits 22,120 23,748 1,628 16,207 21,039 4,832 Intergovernmental 344,121 36/ 20,441 316,918 372,417 55,499 Charges for Services 1,700 1,.. 52 1,700 1,632 (68)
Fines and Forfeits 41,500 44,038 2,538 19,000 53,826 34,826 Miscellaneous Revenue 111,150 45,032 (66,118) 47,000 45,126 _ l,874) f Total Pevenues 964,441 949,060 (15,381) 781,077 901,506 120,429 y Expenditurest O'
General Government 292,710 294,711 (2,001) 214,613 208,491 6,122 Public Safety 514,222 458,547 55,675 418,336 417,381 955 Physical Environment 12,215 8,474 3,741 11,600 9,964 1,636 Transportation 278,527 279,891 (1,364) 148,251 132,729 15,522 Economic Environment 12,000 13,000 (1,000) 11,000 11,000 -
Culture and Recreation 228,667_ 217,257 11,405 174,335 173,512 823 Total Expenditures 1,338,336 1,271,880 66,456 978,135 953,077 25,058 Excess (Deficiency) of Revenues Over (Under) Expenditures (3"i3,895) (322,820) 51,075 (197,058) (51,571)~ 145,487
A-3' CITY OF BUS! GELL, FLOR 2DA (Page 2 of 2) l GENERAL FUND COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES--BUDGET AND ACTUAL YEARS ENDED SEPTEMBER 30, 1994 AND 1993 VARIANCE VARIANCE
< 1994 FAVORABLE 1993 FAVORABLE BUDGETED ACTUAL fUNFAVORABLE) BUDGETED ACTUAL fUNFAVORABLE1 Other Financing Sources: 7 Operating Transfers In:
Electric Utility Fund S 187,000 $ 187,000 5 -
S 187,000 $ 187,000 $ -
Water Utility Fund 20,000 20,000 -
20,000 20,000 -
Sanitation Fund 10,000 10,000 - 10,000 10,000 -
Loan Proceeds (Land) 150,000 150,000 - - - -
Total other Financing Sources 367,000 367,000 - 217,000 __ 217,000 -
Excess (Deficiency) of Revenues
- and Other Financing Sources U Over (Under) Expenditures (6,895) 44,180 51,075 19,942 165,429 145,487 Fund Balances October 1 235,373 380,696 145,323 215,431 215,431 -
Increase (Decrease) in Reserves -
53 53 -
(164) (164)
Fund Balances September 30 $ 228,478 $ 424,929 S 196,451 S 235,373 S 380,696 S 145,323 s
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1 A-4 CITY OF BUSHNELL, FLORIDA (Page 1 of 2).
GENERAL FUND STATEMENT OF REVENUES BUDGET AND ACTUAL YEAR ENDED SEPTEMBER 30, 1994 I
'(WITH COMPARATIVE ACTUAL RESULTS FOR THE YEAR ENDED SEPTEMBER 30, 1993)
VARIANCE . PRIOR }
FAVORABLE YEAR !
REVENUE BUDGETED ACTUAL' (UNFAVORABLE) ACTUAL Taxes Ad valorem 5 88,795 $ 90,213 $ 1,418 $ 87,871 f Ssics Use and Gas Taxes 112,500 117,845 5,345 92,175 .
Frenchise Fees :
Tolophone 1,660 1,634 (26) 1,652 !
Electric 43,800 48,292 4,492 44,796 l Cable TV 5,670 5,924 254 5,613 ,
Utility Service Taxes: {
Talephone 37,500 43,838 6,338 30,188 i Gas 11,300 13,308 2,008 12,825 ;
Electric 51,200 57,073 5,873 52,277 Fuel Oil 25 -
(25) 9 i City Utility Tax 86,000 86,089 89 74,570 City Utilities Surcharge 5,400 5,712 312 5,490 -;
i Total Taxes 443,850 469,928 26,078 407,466 ;
Licenses and Permits: [
Occupational Licenses 4,100 5,422 1,322 4,690 f Building Permits 18,000 18,263 263 16,326 ,
Othar 20 63 43 23 [
l Total Licenses and Permits 22,120 23,748 1,628 21,039 Intercovernmental Revenues '
- Two. Cent Cigarette Tax 14,657 16,826 2,169 15,133
- _ State Revenue Sharing 49,681 54,847 5,166 53,310 ;
- Mobile Home Licenses 4,500 5,679 1,179 4,726 !
l Alcoholic Beverage License 800 528 (272) 848 j Seven Cent Sales Tax 52,500 53,976 1,476 5'i,401 .
, County Fire Fee 48,333 48,333 - 48,886 !
State Grant - - -
6,330 .f Share of County j occupational License 2,600 2,778 178 2,621 .j Rabate on Municipal Vehicles 800 1,119 319 616
.Sumter County Two Cent Gas Tax 170,250 180,476 10,226 182,546-j Total Intergovernmental Revenue S 344,121 S 364,562 $ 20,441 $ 372,417 I
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A-4 CITY OF BUSHNELL, FLORIDA (Page 2 of 2)
GENERAL FUND STATEMENT OF REVENUES BUDGET AND ACTUAL YEAR ENDED SEPTEMBER 30, 1994 (WITH COMPARATIVE ACTUAL RESULTS FOR THE YEAR ENDED SEPTEMBER 30, 1993) l VARIANCE PRIOR l FAVORABLE YEAR REVENUE BUDGETED ACTUAL 11JNFAVORABLE) ACTUAL Charoes For Services Mowing Fees S 1,700 $ 1,752 S 52 S 1,632 I
Total Charges For Services 1,700 1,752 52 1,632 Fines and Forfeitures Fines and Forfeitures 22,000 24,359 2,359 16,515 j Police Education 500 690 190 510 !
I Drug Interdiction 19,000 18,989 (11) 36,801 i Total Fines and Forfeitures 41,500 44,038 2,538 53,826 i
Miscellaneous Revenues i Interest Earned 8,500 9,008 508 6,391 Rent 4,000 3,956 (44) 3,478 i Miscellaneous 15,400 18,800 3,400 35,257
)
Sale of Assets 83,250 13,268 (69,982) -
l 111,150 45,032 (66,118) 45,126 Total Revenue S 964,441 S 949,060 S (15,381) S 901,506 l
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i A-5 CITY OF BUSHNELL, FLORIDA (Page 1 of 5) ,
GENERAL FUND STATEMENT OF EXPENDITURES BUDGET AND ACTUAL YEAR ENDED SEPTEPBER 30, 1994 l (WITH COMPARATIVE ACTUAL RESULTS FOR THE YEAR ENDED SEPTEMBER 30, 1993) ;
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VARIANCE PRIOR FUNCTION / ACTIVITY / FAVORABLE YEAR ,
SUBACTIVITY/ OBJECT BUDGETED bCTUAL fUNFAVORABLE) ACTUAL General Government' Services: '
Legislative Council Fees 13,000 S $ 13,050 $ (50) $ 10,650 (
General Insurance 2,150 1,975 175 2,486 l Aid to Private Agency 1,000 925 75 700 Total Legislative 16,150 15,950 200 13,836 Financial and Administratives Executive Salary 80,104 80,397 (293) 76,732 Regular Salary 20,676 20,974 (298) 19,852 ,
Deferred compensation 400 338 62 260 FICA Taxes 7,710 7,009
{
701 7,431 ~
Retirement 20,361 22,057 (1,696) 18,304 i Workmen's compensation 859 3,436 (2,577) 508 (
Group Insurance 11,625 11,489 136 12,379 Professional Services 6,000 4,821 1,179
(
1,097 ;
Accounting & Auditing 5,200 5,212 (12) 2,724 i contractual Services 7,150 5,920 1,230 4,804 Travel & Per Diem 3,100 2,310 790 1,729 Communication Services 2,100 2,156 (56) 2,000 Utilities 2,500 3,169 '
(669) 2,738 Ganeral Insurance 2,690 1,660 1,030 1,443 j Other current Charges 5,060 5,725 (665) 4,887 .
office Supplies 1,800 2,590 (790) -1,592 Operating Supplies 4,200 8,045 (3,845) 5,955 Rapair & Maintenance 750 443 307 219 l Books, Publvcations and Memberships 750 810 (60) 1,125 t capital Outlay 73,000 67,628 5,372 15,860 !
Dsbt Services Principal -
1,926 (1,926) -
Interest -
1,266 (1,266) -
Total Financial and Administrative 256,035 259,381 (3,346) 181,639 Lsgal Counsel 20,525 19,380 1,145 13,016 Total General Government Services S 292,710 $ 294,711 S (2,001) S 208,491 30 1
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A-5 -
CITY OF BUSHNELL, FLORIDA (Page 2 of 5)
-GENERAL FUND STATEMENT OF EXPENDITURES ,
BUDGET AND ACTUAL !
YEAR ENDED SEPTEMBER 30, 1994 (WITH COMPARATIVE ACTUAL RESULTS FOR THE YEAR ENDED SEPTEMBER 30, 1993) l VARIANCE PRIOR FUNCTION / ACTIVITY / FAVOKABLE YEAR ;
SUBACTIVITY/ OBJECT BUDGETED ACTUAL (UNFAVORABLE) ACTUAL .
e Public Safety:
Police Department:
Executive Salaries S 37,700 $ 37,835 S (135) S 35,031 i Regular Salaries 122,970 119,086 3,884 119,454 !
Other Salaries 5,500 4,897 603 272 !
Holiday Pay 5,700 6,327 (627) 6,017 -
Incentive Pay 3,500 3,697 (197) 3,388 FICA Taxes 13,148 12,653 495 12,636 '
Retirement contributions 45,125 46,570 (1,445) 41,240 Group Insurance 26,091 25,922 169 25,513 Workmen's compensation 12,330 9,995 2,335 5,082 contraccual Services 7,500 7,012 488 7,040 Tra<el & Per Diem 3,000 2,276 724 2,529 i conuunication and Phone 2,500 2,633 (133) 2,172 j Utilities 3,500 3,381 119 3,509 '
Insurance--General 16,775 16,775 -
6,017 Repair & Maintenance 5,700 2,137 3,563 6,748 other current Charges 10,570 6,975 3,595 30,188 Office supplies 1,000 313 687 199 Operating Supplies 17,000 20,297 (3,297) 16,603 l Police Education 1,200 969 231 815 i Books and Memberships 1,800 163 1,637 922 l Capital outlay 50,250 49,463 787 6,798 Debt Serv _ ice:
Principal 1,954 1,938 16 24,139 i Interest 45 106 (61) 10,996 l Total Police Department S 394,858 5 381,420 S 13,438 $ 367,308 1
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A-5 CITY OF BUSHNELL, FLORIDA (Page 3 of 5)
GENERAL FUND STATEMENT OF EXPENDITURES BUDGET AND ACTUAL YEAR ENDED SEPTEMBER 30, 1994 (WITH COMPARATIVE ACTUAL RESULTS FOR THE YEAR ENDED SEPTEMBER 30, 1993)
VARIANCE PRIOR FUNCTION / ACTIVITY / FAVORABLE YEAR SUBACTIVITY/ OBJECT BUDGETED ACTUAL (UNFAVORABLE) ACTUAL Fire Department Executive Salaries 4,189 S $ 4,204 $ (15) $ 3,891 ,
Personal Allowances 12,400 8,284 4,116 8,738 FICA Taxes 320 309 11 298 Retirement 1,156 1,243 (87) 1,105 Groun Insurance 393 393 -
394 Workmsn's Compensation 2,319 1,562 757 2,033 contractual Services 350 240 110 292 Communication Services 700 978 (278) 643 Insurance 5,376 5,789 (413) 3,414 R2 pairs & Maintenance 4,000 3,135 865 1,379 Other current Charges 400 178 222 723 Books and Memberships 700 50 650 651 Operating Supplies 11,750 4,317 7,433 8,201 Travel & Per Diem 650 -
650 321 School & Training 1,400 30 1,370 1,358 Capital Outlay 10,585 5,990 4,595 5,688 Dsbt Service:
Principal 20,972 16,333 4,639 -
j Interest 9,063 4,931 4,132 -
Total Fire Department 86,723 57,966 28,757 39,129 Building Inspector:
R: gular Salaries 19,000 11,886 7,114 6,906 FICA Taxes 1,454 851 603 528 R5tirement 3,360 1,040 2,320 2 croup Insurance 4,127 1,712 2,415 -
Safety Inspections 1,000 804 196 319 j Travel & Per Diem 800 2,254 '
(454) 2,880 Operating Supplies 2,500 b57 1,943 -
Books & Memberships 400 1,057 (657) 309 Total Building Inspector 32,641 19,161 13,480 10,944
. Total Public Safety $ 514,222 $ 458,547 $ 55,675 $ 417,381 4
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A-S CITY OF BUSHNELL, FLORIDA (Page 4 of 5)
GENERAL FUND STATEMENT OF EXPENDITURES BUDGET AND ACTUAL '
YEAR ENDED SEPTEMBER 30, 1994 (WITH COMPARATIVE ACTUAL RESULTS FOR THE YEAR ENDED SEPTEMBER 30, 1993)
VARIANCE PRIOR j FUNCTION / ACTIVITY / FAVORABLE YEAR SUBACTIVITY/ OBJECT BUDGETED ACTUAL fUNFAVORABLE) ACTUAL Physical Environment * [
Cemetery: I Professional Services S 1,415 $ 2,025 S (610) S 635 Utility Service 8,500 4,249 4,351 7,029 Aid to Governmental Agencies 2,000 1,500 500 2,000 Aid to Private Organizations 300 800 (500) 300 Total Physical Environment 12,215 8,474 3,741. 9,964 i Transportation: ;
Road & Street Department:
Executive Salary 15,500 15,000 500 9,378 Regular Salary 21,500 21,180 320 16,242 !
Other Salaries 1,870 1,658 212 202 FICA Taxes 2,400 2,811 (411) 1,829 ,
Retirement Contributions 5,900 6,048 (148) 3,595 Group Insurance 7,200 6,305 895 5,184 Workmen's compensation 849 2,499 (1,650) 773 '
General Insurance - - - 1,119 ,
Professional Services 18,000 7,540 10,460 -
Contractual Services 13,000 25,976' (12,976) 6,793 General Insurance 1,700 2,398 (698) -
Repairs & Maintenance 7,100 7,805 (705) 4,656 i Other Current Charges 300 214 86 213 Operating Supplies 10,500 11,584 (1,084) 3,564 Street Lights - Electricity 32,708 33,410 (702) 32,022 j Capital outlay 140,000 135,463 4,537 47,159 Total Transportation 278,527 279,891 , (1,364) 132,729 Economic Environment: 1 Miscellaneous contribution l Sumter County Industrial !
Development Authority 12,000 11,000 (1,000) 11,000 l Total Economic Environment S 12,000 $ 13,000 $ (1,000) $ 11,000 ,
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A-5 CITY OF BUSHNELL, FLORIDA (Page 5 of 5)
GENERAL FUND STATEMENT OF EXPENDITURES BUDGET AND ACTUAL YEAR ENDED SEPTEMBER 30, 1994 (WITH COMPARATIVE ACTUAL RESULTS FOR THE YEAR ENDED SEPTEMBER 30, 1993)
VARIANCE PRIOR FUNCTION / ACTIVITY / FAVORABLE YEAR SUBACTIVITY/ OBJECT BUDGETED ACTUAL (UNFAVORABLE) ACTUAL f
1 Culture and Recreations Library:
Aid to Private Organizations S 6,000 $ 5,500 $ 500 6,000 Utility Services 475 495 (20) 385 l
Total Library 6,475 5,995 480 6,385 Pcrks & Recreation:
Executive Salary 11,250 9,134 2,116 8,004 Rigular Salaries 14,224 10,241 3,983 13,880 Other Salaries 750 251 499 618 FICA Taxes 2,006 1,434 572 1,719 R;tirement Contributions 4,707 3,937 770 3,424 Group Insurance 5,126 3,952 1,174 4,501 l Workmen's compensation 2,457 937 1,520 1,599 Contractual Services 7,500 7,332 168 6,462 Professional Services 300 -
300 -
1 Utilities 11,250 12,775 (1,525) 10,842 Rantals 1,400 512 888 1,270 Rspairs & Maintenance 2,000 1,267 733 1,479 Other Current Charges 2,200 2,230 (30) 2,765 Operating Supplies 11,000 10,711 289 10,858 Gsneral Insurance 2,522 922 1,600 1,740 Capital Outlay 50,000 54,752 (4,752) 67,654 Dzbt Service:
Principal 72,000 70,930 1,070 7,410 l Interest 3,162 2,637 525 3,224 Total Parks and Recreation 203,854 193,954 9,900 147,449 Special Events:
Contracted Services 7,500 7,455 45 7,010 Other Current Charges 4,833 5,163 (330) 4,372 Operating Supplies 6,000 4,690 1,310 8,296 3
Total Special E*ents 18,333 17,308 1,025 19,678 Total Culture and Recreation 228,662 217,257 11,405 173,512 Total Expenditures S 1,338,336 $ 1,271,880 S 66,456 953,077 34
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SPECIAL REVENUE FUND FINANCIAL STATEMENTS Evergreen Cemetery Fund
. ..+ ,,+ .. . . . . ~ .. . - .- - - -
CITY OF BUSHNELL, FLORIDA B-1 l EVERGREEN CEMETERY FUND COMPARATIVE BALANCE SHEET }
SEPTEMBER 30, 1994 AND 1993 ;.
l 1914 1995 l ASSETS -
Ccch S. 2,782 S 2,900 !
R3stricted Assets: !
-Cash and Investments 297,000 282,052- i S 299,782 S 284,952 I i
LIABILITIES AND FUND BALANCES !
Liabilities: l Deposits S 1,500 $ 1,725 ,
Fund Balances
- Reserved: Perpetual Care 295,500 280,327 ;
Unreserved 2,782 2,900 !
h 298,282 283,227 !
r TOTAL LIABILITIES AND FUND BALANCES S 299,782 $ 284,952 t
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.I CITY OF BUSHNELL, IT.DRIDA . B-2 EVERGREEN CEMETERY FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEARS ENDED SEPTEMBER 30, 1994 AND 1993 l'
1994 1993
- Revenues ;
contributions S 9,342 S 8,127 r Sale of cemetery Lots 6,300 4,400 Interest Earned 14,343 13,998 Memorial Gifts and Trust 795 190 Total Revenues 30,780 26,715 Expenditures ,
Operating and Maintenance 15,725 18,785 Total Expenditures 15,725 18,785 Excess of Revenues Over Expenditures 15,055 7,930 Fund Balances October 1 283,227- 275,297 l l
Fund Balances September 30 $ 298,282 S 283,227 t
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CITY OF BUSHNELL, FLORIDA 'B - 3 EVERGREEN CEMETERY FUND i STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET & ACTUAL '
FOR THE YEAR ENDED SEPTEMBER 30, 1994 i
i i
VARIANCE FAVORABLE ,
BUDGETED ACTUAL fUNFAVORABLE) .
Rsvenuest -
Contributions S 8,000 $ 9,342 S 1,342 i Sale of cemetery Lots 4,400 6,300 1,900 Interest Earned 15,000 14,343 (657) ,
Memorial Gifts and Trust 200 795 595 Total Revenues 27,600 30,780 3,180 t i
Expenditures:
Operating and Maintenance 15,000 15,725 (725) ,
t Total Expenditures 15,000 15,725 (725)
~
Excess of Revenues Over Expenditures $ 13,600 15,055 S 2,455 f
Fund Balances October 1 283,227 -
Fund Balances September 30 $ 298,282 9
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ENTERPkISE FUNDS Enterprise Funds are used to account for operations (a) that' are financed and operated in a manner similar to private business enterprises--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; or (b) where the governing body has decided ;
that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, account-ability, or other purposes. Certain administrative expenses are paid by the General Fund.
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CITY OF BUSHNELL, FLORIDA (Pag 3 1 of.3).
ENTERPRISE FUNDS COMBINING BALANCE SHEET SEPTEMBER-30, 1994 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1993)
ELECTRIC WATER TOTALS UTILITY UTILITY SANITATION SEPTEMBER 30 FUND FUND FUND 1994 1993 ASSETS Current Assets:
Cash and Cash Equivalents S 236,208 S 100,802 $ 57,031 S 394,041 $ '297,657 Customer Accounts Receivable 209,038 32,747 23,894 265,679 243,735 Allowance for Doubtful Accounts (1,000) (500) (500) (2,000) (2,000)
Due From Other Funds -
17,470 -~ 17,470 14,521-Inventories, at Cost 60,969 15,935 - 76,904 67,720
! Total Current Assets 505,215 166,454 80,425 752,094 621,633 Restricted Assets:
Cash and Cash Equivalents:
m Nuclear Decommissioning 54,557 - -
54,557 48,595 Debt Service 78,394 12,762 -
91,156 96,090 Renewal and Replacement 221,922 - -
221,922 264,051 Customer Deposits 71,727 - - 71,727 _ _61,928 Total Restricted Assets 426,600 12,762 - 439,362 470,664
. Property and Equipment, at Cost:
} Utility Plant in Service 1,879,822 1,646,487 190,486 3,716,795 3,569,578 Accumulated Depreciation (658,465) (431,454) (104,081) (1,194,000) (1,071,935)
Total Property and Equipment (Net of Accumulated Depreciation) 1,221,357 1,215,033 86,405 2,522,795 2,497,643 i
Other Assets:
Loan Cost (Net) 5,311 6,291 - 11,602 12,219 Total Assets S 2,158,483 S 1,400,540 S 166,830 $ 3,725,853 $ 3,602,159
_ . _ . ____.__________.m..__ ___ _ _m._ _ m _ _ ______.m . - _ _ _ _ _ _ - _ _ , , + , , , - . - - . , . . , . , . - - . . . , , , - w -r ..r,,.s av-- 4,~~ ,. -,,-rv....,,,s
C-1 CITY OF BUSHNELL, FLORIDA ~(Page 2 of 3)
ENTERPRISE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1994 *
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1993)
ELECTRIC WATER TOTALS UTILITY UTILITY SANITATION SEPTEMBER 30 FUND FUND FUND 1994 1993
- LIABILITIES AND FUND EOUITY Current Liabilities
Accounts Payable S 85,720 $ 9,697 S 9,127 $ 104,544 S 147,113 Accrued Liabilities 8,563 2,667 779 12,009 8,156 Compensated Absences Payable 13,865 10,914 2,759 -27,538 21,802 I Due to Other Funds 17,470 - - 17,470 15,059 i Current Portion of Note Payable 21,838 14,163 7,760 43,761 38,395 Total Current Liabilities 147,456 37,441 20,425 205,322 230,525 Current Liabilities (Payable From w Restricted Assets):
c Customer Deposits 66,435 - - 66,435 61,121 Accrued Interest Payable 6,435 1,048 - 7,483 8,578 Current Portion of Bonds Payable 30,100 4,900 - 35,000 30,000 i
Total Current Liabilities (Payable From Restricted Assets) 102,970 5,948 - 108,918 99,699 Long Term Liabilities:
Revenue Bonds Series 1976 (Net of Current Portion and Discount) 142,654 23,226 - -165,880 199,856 Long Term Portion of Note Payable 1,000. 21,278 22,278 31,633 Note Payable - FmPa 161,752 309,247 - 470,999 506,000 Total Long Term Liabilities 304,406 333,473 21,278 659,157 737,489 Total Liabilities 554,832 376,862 41,703 973,397 1,067,713
. - . _ _ . _ . . _ . _ _ _ . . _ _ . _ . - . _ _ _ _ - . . - . __ .- - _- . _.. _ . _ . . . _ . - . - - - . - - . ._. .. - _ . - , . . . - - c- . - _ , - -
C-1 CITY OF BUSHNELL, FLORIDA (Pcge 3 cf 3)
ENTERPRISE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1994 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1993)
ELECTRIC WATER TOTALS UTILITY UTILITY SANITATION SEPTEMBER 30 FUND FUND FUND 1994 1993 LIABILITIES AND FUND EOUITY (Continued)
Fund Equity:
Contributed Capital 5 176,381 S 926,307 $ 29,449 $ 1,132,137 $ 1,130,112 Retained Earnings (Deficit):
Reserved 323,630 6,814 - 330,444 370,965 Unreserved 1,103,640 90,557 _ 95,678 1,289,875 1,033,369 Total Retained Earnings 1,427,270 97,371 95,678 1,620,319 1,404,334 Total Fund Equity 1,603,651 1,023,678 125,127 2,752,456 2,534,446 Total Liabilities and Fund Equity S 2,158,483 S 1,400,540 $ 166,830 5 3,725,853 S 3,602,159
CITY OF BUSHNELL, FLORIDA C-2 COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS (DEFICIT) - ENTERPRISE FUNDS YEAR ENDED SEPTEMBER 30, 1994 (WITH COMPARATIVE TOTALS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1993)
ELECTRIC WATER TOTALS UTILITY UTILITY SANITATION SEPTEMBER 30 FUND FUND FUND 1994 1993 Operating Revenues:
Charge for Services S 1,443,086 $ 280,391 $ 214,519 $ 1,937,996 $ 1,842,713 Operating Expenses:
Purchased Power 807,403 - - 807,403 813,797 Salaries 95,475 64,661 33,872 194,008 184,808 Employee Benefits 39,930 29,286 22,705 91,921 80,769 l Professional Services 27,439 17,267 3,886 48,592 41,372 l Operating Supplies 11,045 9,756 10,386 31,167 53,637 other Current Charges 37,183 26,644 20,204 84,031 64,271 Depreciation 72,912 51,690 16,240 140,842 112,490 Landfill - - 91,347 91,347 62,846 Total Operating Expenses 1,091,387 199,304 198,640 1,489,331 1,<;13,990 0
Operating Income (Loss) 351,699 81,087 15,879 448,665 428,723
( Non-Operating Revenues (Expense):
Interest Earned 21,065 2,182 920 24,167 22,188 1 Interest Expense (23,154) (15,663) (1,030) (39,847) (41,224)
Total Non-Operating Revenues (Expense) (2,089) (13,481) (110) (15,680) (19,036)
Operating Income (Loss) Before Transfers 349,610 67,606 15,769 432,985 409,687 l
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Operating Transfers (Out) (187,000) (20,000) (10,000) (217,000) (217,000)
Net Income (Loss) 162,610 47,606 5,769 215,985 192,687-Retained Earnings October 1 1,264,660 49,765 89,909 1,404,334 1,211,647 Retained Earnings (Deficit)
September 30 $ 1,427,270 $ 97,371 S 95,678 $ 1,620,319 $ 1,404,334
N CITY OF BUSHNELL, FLORIDA (Page 1 of 2)
ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 1994 (WITH COMPARATIVE TOTALS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1993)
ELECTRIC WATER TOTALS UTILITY UTILITY SANITATION SEPTEMBER 30 FUND FUND FUND 1994 1993 Cash Flows From Operating Activities:
Cash Received From Customers, including Cash Deposits S 1,459,442 S 273,208 S 210,293 S 1,942,943 $ 1,830,865 Cash Paid to Suppliers (954,256) (100,255) (148,837) (1,203,348) (1,098,403)
Cash Paid to Employees (92,501) (62,323) (32,482) (187,306) (180,634)
Cash Deposits Returned to Customers (21,078) - -
(21,078) (20,578)
Net Cash Provided By Operating Activities 391,607 110,630 28,974 531,211 531,250 Cash Flows From Noncapital Financing Activities:
Capital contributions - Customers - 2,026 -
2,026 7,281 Received From (Paid To) Other Funds 2,410 (2,948) -
(538) 538 Operating Transfers Out (187,000) (20,000) (10,000) -(217,000) (217,000) 3 Net Cash Used In Noncapital M Financing Activities (184,590) (20,922) (10,000) (215,512) (209,181)
Cash Flows From Capital and Related Financing Activities:
Loan Proceeds - - - - 155,800 Purchase of Property and Equipment (83,432) (78,564) (3,995) (165,991) (329,200)
Principal Payments (42,149) (17,713) (7,990) (67,852) (199,099)
Interest Paid (24,096) (15,816) (1,030) (40,942) (43,413)
Net Cash Provided By (Used In) Capital and Related Financing Activities (149,677) (112,093) (13,015) (274,785) (415,912)
Cash Flows From Investing Activities:
Receipt of Interest and Dividends 21,066 2,182 920 24,168 22,188 Net Cash Provided By Investing Activities 21,066 2,182 920 24,168 22,188 Net Increase (Decrease) In Cash 78,406 (20,203) 6,879 65,082 (71,655)
Cash, October 1 584,402 133,767 50,152 768,321 839,976 Cash, September 30 $ 662,808 $ 113,564 $ 57,031 S 833,403 S 768,321
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ELECTRIC WATER TOTALS UTILITY UTILITY SANITATION SEPTEMBER 30 FUND FUND FUND 1994 1993 Reconciliation of Operating Income to Net Cash Provided By Operating Activities:
Operating Income (Loss) S 351,699 $ 81,087 $ 15,879 $ 448,665 $ 428,723 Adjustments to Reconcile Operating Income to Net Cash Provided By Operating Activitiest Depreciation 72,912 51,690 16,240 140,842 112,490 Change in Assets and Liabilities (Increase) Decrease in Accounts Receivable (10,037) (7,183) (4,226) (21,446) (38,984)
(Increase) Decrease in Inventory (6,831) (2,353) -
(9,184) 7,369 Increase (Decrease) in Accounts Payable ,(26,102) (16,154) (312) (42,568) 18,235 Increace (Decrease) in Accrued Liabilities 2,644 1,205 3 3,852 *
(6,848)
Increase (Decrease) in Compensated Absences Payable 2,008 2,338 1,390 5,736 3,707 8 Net Increase (Decrease) in Customer Deposit 5,314 - - 5,314 6,558 Total Adjustments 39,908 29,543 13,095 82,546 102,527 Net Cash Provided by Operating Activities S 391,607 $ 110,630 S 28,974 S 531,211 $ 531,250
CITY OF BUSHNELL, FLORIDA C-4 SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS - BUDGET AND ACTUAL ELECTRIC FUND YEAR ENDED SEPTEMBER 30, 1994 (WITH COMPARATIVE TOTALS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1993)
VARIANCE PRIOR FAVORABLE YEAR BUDGETED ACTUAL (UNFAVORABLE) ACTUAL Opercting Revenues Ch rge for Services S 1,359,597 $ 1,443,086 S 83,489 $ 1,402,282 Opercting Expenses:
Purchased Power 797,692 807,403 (9,711) 813,797 Snicries 93,955 95,475 (1,520) 89,107 Employee Benefits 43,888 39,930 3,958 36,016 Professional Services 27,300 27,439 (139) 27,725 Operating Supplies 14,000 11,045 2,955 32,674 Oth2r current Charges 47,149 37,183 9,966 24,067 DIpreciation - 72,912 (72,912) 60,629 Total Operating Expenses 1,023,984 1,091,387 (67,403) 1,084,015 Operating Income 335,613 351,699 16,086 318,267 Non-Operating Revenues (Expense):
Interest Earned 16,000 21,065 5,065 18,887 Interest Expense (27,601) (23,154) 4,447 (24,441)
Total Non-Operating Revenues (Expense) (11,601) (2,089) 9,512 (5,554)
Operating Income Before Transfers 324,012 349,610 25,598 312,713 i
opercting Transfers (Out) (187,000) (187,000) -
(187,000)
Nst Income S 137,012 162,610 S 25,598 125,713 RItcined Earnings October 1 1,264,660 1,138,947 '
i R3tained Earnings (Deficit)
Saptonber 30 S 1,427,270 S 1,264,660 ;
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CITY OF BUSHNELL, FLORIDA C-5 SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS - BUDGET AND ACTUAL WATER FUND YEAR ENDED SEPTEMBER 30, 1994 (WITH COMPARATIVE TOTALS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1993)
VARIANCE PRIOR FAVORABLE YEAR BUDGETED ACTUAL (UNFAVORABLE) ACTUAL Operating Revenues:
Charge for Services S 264,565 S 280,391 S 15,826 S 274,478 1
Operating Expenses:
Salaries 62,856 64,661 (1,805) 64,103 Employee Benefits 29,498 29,286 212 26,611 Professional Services 21,300 17,267 4,033 12,026 Operating Supplies -
9,756 (9,756) 12,688 Other Current Charges 42,150 26,644 15,506 30,412 Depreciation - 51,690 (51,690) 46,515 Total Operating Expenses 155,804 199,304 (43,500) 192,355 Operating Income (Loss) 108,761 81,087 (27,674) 82,123 Non-Operating Revenues (Expense):
Interest Earned 2,750 2,182 (568) 2,168 Interest Expense (24,149) (15,663) 8,486 (15,985)
Total Non-Operating Revenues (Expenses) (21,399) (13,481) 7,918 (13,817)
Operating Income (Loss) Before Transfers 87,362 67,606 (19,756) 68,306 Operating Transfers (Out) (20,000) (20,000) -
(20,000)
Not Income (Loss) S 67,362 47,606 S (19,756) 48,306 Retained Earnings October 1 49,765 1,459 Retained Earnings (Deficit)
September 30 $ 97,371 S 49,765 45
CITY OF BUSHNELL, FLORIDA C-6 SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS - BUDGET AND ACTUAL SANITATION FUND YEAR ENDED SEPTEMBER 30, 1994 (WITH COMPARATIVE TOTALS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1993)
VARIANCE PRIOR FAVORABLE YEAR BUDGETED ACTUAL (UNFAVORABLE) ACTUAL Opercting Revenues Charge for Services S 201,725 S 214,519 $ 12,794 S 165,953 Operating Expenses:
Salaries 37,248 33,872 3,376 31,598 Employee Benefits 22,800 22,705 95 18,142 Professional Services 2,000 3,886 (1,886) 1,621 Operating Supplies 8,500 10,386 (1,886) 8,275 Othsr current Charges 11,900 20,204 (8,304) 9,792 D:preciation -
16,240 (16,240) 5,346 Landfill 93,000 91,347 1,653 62,846 Total Operating Expenses 175,448 198,640 (23,192) 137,620 Operating Income (Loss) 26,277 15,879 (10,398) 28,333 Non-Operating Revenues (Expense):
Intarest Earned 1,400 920 (480) 1,133 Interest Expense (1,597) (1,030) 567 (798)
Total Non-Operating Revenues (Expenses) (197) (110) 87 335 Operating Income (Loss) Before Trtnsfers 26,080 15,769 (10,311) 28,668 operating Transfers (Out) (10,000) (10,000) -
(10,000)
Nst Income S 16,080 5,769 $ (10,311) 18,668 i Rstained Earnings October 1 89,909 71,241 Rstained Earnings (Deficit)
Szptember 30 $ 93,678 $ 89,909 i
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AGENCY PUND FINANCIAL STATEMENTS Bail Bond Fund Employee Deferred Compensation Fund I
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CITY OF BUSHNELL, FLORIDA D1 AGENCY FUND - BAIL BOND FUND BALANCE SHEET SEPTEMBER 30,--1994 (WITH COMPARATIVE TOTALS FOR' SEPTEMBER 30, 1993)
L SEPTEMBER 30 f 1994 1993 ASSETS Cash S 2,169 $ 2,419
' Total Assets $ 2,169 $ 2,419-t b
i LIABILITIES c
. Liabili'les:
Deposits S, 2,169 $ 2,419 Total Liabilities $ 2,169 S 2,419 r
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i CITY OF BUSHNELL, FLORIDA D - 2' f AGENCY FUND - EMPLOYEE DEFERRED COMPENSATION FUND f
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES '
FOR THE YEAR ENDED SEPTEMBER 30, 1994 ;
I I
Investments S 25,027 ,
i Deferred Compensation Payable i Beginning Balance 10,828 I Add: Employee Contributions S 13,596 Income on Investments 1,124 {
Less: Administrative Costs (8)
Withdrawals and Terminations (513) -14,199 :
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Total Deferred Compensation Payable Ending Balance $ 25,027 l
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SUPPLEMENTARY INFORMATION
i 3425 Lake Center Dr., Ste.1 D vid Logan, CPA PA Mount Dora. FL 32757 Certified Public Accountant I Fax (904 383 5441 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE BASED ON AN AUDIT OF GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMEhT AUDITING STANDARDS Honorable Mayor and Members of the City Council City of Bushnell, Florida
=
I have audited the general-purpose financial statements of the City of Bushnell, Florida, as of and for the year ended September 30,1994, and have issued my report thereon dated February 4,1995.
I conducted my audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to the City of Bushnell, Florida, is the responsibility of the City of Bushnell, Florida's management. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, I performed tests of the City of Bushnell, Florida's compliance with certain provisions of laws, regulations, contracts, and grants. However, the objective of my audit of the general-purpose financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, I do not express such an opinion.
The results of my tests indicate that, with respect to the items tested, the City of Bushnell, Florida, complied, in all material respects, with provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to my attention that caused me to believe that the City of Bushnell, Florida, had not complied, in all material respects, with those provisions. I noted no immaterial instances of noncompliance.
This report is intended for the information of the management, and the City Ccancil. However, this report is a matter of public record and its distribution is not limited.
iCl tiff David Logan, CPA PA Mount Dora, Florida February 4,1995 49
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3425 Lake Center Dr., Ste.1 David Logan, CPA PA Mount Dora, FL 32757 Certified Public Accountant I F 0 383 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS Honorabic Mayor and Members of the City Council City of Bushnell, Borida I have audited the general-purpose financial statements of the City of Bushnell, Borida, as of and for the year ended September 30,1994, and have issued my report thereon dated February 4,1995.
I conducted my audit in accordance with generally accepted auditing standards and Government
! Auditing Standanis, issued by the Comptroller General of the United States. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
l
} In planning and performing my audit of the general-purpose financial statements of the City of-i Bushnell, Morida, for the year ended September 30,1994, I considered its internal control structure in order to determine my auditing procedures for the purpose of expressing my opinion on the general-purpose financial statements and not to provide assurance on the internal control structure.
The management of the City of Bushnell, Borida is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgements by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general-purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also,
.- projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and i operation of policies and procedures may deteriorate.
For the purpose of this report, I have classified the significant internal control structure policies and I procedures in the following categories:
- 1. Cash Receipts
- 2. Utility Billing
- 3. Payroll
- 4. Purchasing and Inventory Control
- 5. Property and Equipment
- 6. Budgetary Control
- 7. General Accounting Procedures 1
50 L- _ _ _ ___ _ _ _. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
I
Honorable Mayor and Members of the City Council Page 2 For all of the internal control structure categories listed above, I obtained an understanding of the ,
design of relevant policies and procedures and whether they have been placed in operation, and I assessed control risk.
I noted certain matters involving the internal control structure and its operation that I consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to my attention relating to rignificant deficiencies in the design or operation of the internal control structure that, in my judgement, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general-purpose financial statements.
PROPERTY AND EDUIPMENT- ENTERPRISE FUNDS
- 1. FINDING - The City has not established an adequate accounting system for property and equipment and related depreciation. Depreciation is calculated in group total with no provision for current year additions. A system to monitor and record asset disposals is not in place.
- 2. Recommendation - Detail property and equipment records should be automated and a system set up to more accurately calculate and record depreciation on individual assets.
The property custodian should monitor additions and disposals and provide information to the accounting department for entry into the detail records.
A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be materialin relation to the general-purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
My consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, I believe none of the reportable conditions described above is a material weakness.
I also noted other matters involving the internal control structure and its operation that I have reported to the management of the City of Bushnell, Florida, in a separate letter dated February 4, 1995.
This report is intended for the information of management, and the City Council. However, this report is a matter of public record and its distribution is not limited.
mC& &
David Imgan, CPA PA Mount Dora, Florida February 4,1995 51
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3425 Lake Center Dr., Ste.1 David Logan, CPA PA Mount Dora, FL 32757 i
' Certified Public Accountant I F 9 383-5441 INDEPENDENT AUDITOR'S LETTER TO MANAGEMENT ,
Honorable Mayor and Members of the City Council City of Bushnell, Florida I have audited the general-purpose financial statements of the City of Bushnell, Florida, as of and ,
for the year ended September 30,1994, as listed in the Table of Contents, and have issued my report !
thereon dated February 4,1995. I have also issued the INDEPENDENT AUDITOR'S REPORT ,
ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH " GOVERNMENT '
AUDITING STANDARDS" separately from this report. !
The following comments are pursuant to the Rules of the Auditor General Chapter 10.550:
- 1. No irregularities were reported in the prcceding annual financial audit report.
- 2. Recommendations made in the preceding year's annual financial audit have been followed except for fronerty and Eauipment recommendations. i
- 3. The City of Bushnell is not, nor at any time during the fiscal year in a state of financial emergency as a consequence of conditions described in Section 218.503(1). Florida Statutes. ;
- 4. Recommendations to improve the present financial management accounting procedures and .
internal controls are as follows:
A. Reconciliation of Utility Customer Accounts Receivable !
Findine - Detailed billing records are not being reconciled to the generalledger cach {
month. As a result, year end balances did not agree to detail records.
Recommendation - The City should establish a routine procedure to agree general ledger to detail billing records. .
B. Customer Deposits ,
Findine - The customer deposit cash account held an amount in excess of the actual liability for customer deposits at year end.
Recommendation - The customer deposit cash account should be maintained as a separate non-interest bearing account used only for customer deposit transactions.
'Ile month end balance should be reconciled to the actual detail customer deposit records and to the general ledger liability account.
52
l lionorable Mayor and Members of the City Council Page 2
- 5. Violation of laws, rules, and regulation discovered within the scope of the financial audit which may or may not materially affect the financial statements: NONE
- 6. Illegal or improper expenditures discovered within the scope of the financial audit which do or do not materially affect the financial statement: NONE
- 7. Other matters requiring correction which may or may not materially affect the financial statements:
A. Improper or inadequate accounting procedures. NONE B. Failures to properly record financial transactions. NONE C. The financial report filed with the Florida Department of Banking And Finance pursuant to Section 218.32(1)(b) is in agreement with the annual financial audit report for the year ended September 30,1994.
D. Other inaccuracies, irregularities, shortages, and defalcations discovered: NONE
- 8. Official title and legal authority by which created and governed:
City of Bushnell, Florida - General Law Evergreen Cemetery Fund - Ordinance This report is intended solely for the use of management, the City Council and State of Florida Auditor General and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report, which is a matter of public record.
mM .
,C/@ $
David Logan, CPA PA Mount Dora, Florida February 4,1995 53
r FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORTS CITV OF ALACHUA ALACHUA, FLORIDA SEFFEMBER 30,1994 I
]
FINANCIAL STATEMENTS
- AND INDEPENDENT AUDITORS' REPORT CITY OF ALACHUA ALACHUA, FLORIDA SEPTEMBER 30,1994 CONTENTS Page
)
Independent Auditon' Report 1-2 General Purpose Financial Statements Combined Balance Sheet - All Fund Types and Account Groups 3-4 Combined Statement of Revenues, Expenditures
)
and Changes in Fund Balances - All Governmental Fund Types 5 4
Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General and Debt Service Fund 6 Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types 7 Combined Statement of Cash Flows - All i
Proprietary Fund Types 8-10 Notes to Financial Statements 11-38 Accompanying Infonnation - Combining and Individual
, Fund Statements General Fund Balance Sheets 39 Statement of Revenues - Budget and Actual 40 Statement of Expenditures - Budget and Actual 41-42 Proprietary Funds Combining Balance Sheet 43-44 Combining Statement of Revenues, Expenses and Changes in Retained Earnings 45
. Combining Statement of Cash Flows 46-48 i
Purvis Gray &
Company INDEPENDENT AUDITORS' REPORT Honorable Mayor and City Commission City of Alachua Alachua, Florida We have audited the accompanying general purpose financial statements of the City of Alachua, Florida as of September 30,1994 and for the year then ended, as listed in the table of contents. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget (OMB) Circular A-128, Audits of State and Local Governments. Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not obtain sufficient evidential matter to determine if property, plant and equipment recorded in the Proprietary Fund Types is fairly presented at cost or estimated historical cost, due to insufficient detail within the City's property records.
In our opinion, except for the effects of such adjustments, if any, as might have been determined to be necessary had we been able to determine the propriety of amounts recorded as property, plant and equipment in the Proprietary Fund Types, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Alachua, Florida as of September 30,1994, and the results of its operations ar.d the cash flows of its Proprietary Fund Types for the year then ended in conformity with generally accepted accounting principles.
Certified Public Actwntants P.O. Box 23999
- 222 N.E.1st Street
- Gainesville, Florida 32602 * (904)378-2461 Laurel Ridge Professional Center
- 2347 5.E.17th Street
- Ocala, Florida 34471
- 1904) 732-3872 1415 Piedmont Drive, East, Suite 2
- Tallahassee, Florida 32312 * (904) 385-0554 MEM8tk5 Of AMtRCAN AND FLORIDA INSTrrUTES OF CERTIFIED PUBLIC ACCOUNT ANTS MEMBIR OF AMERICAN INSTITUTE OF Cf RTifIED PUBLIC ACCOUNTANTS PRIVAft COMPANits AND 5.E C. PILACTICE SECTIONS
Honorable Mayor and City Commission City of Alachua Alachua, Florida INDEPENDENT AUDITORS' REPORT (Concluded)
Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund financial statements listed in the table of contents are presented for purposes of additional analysis and are not a required pan of the general purpose financial statements of the City of Alachua, Florida. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, except for the effect of such adjustments, if any, related to the matter discussed in the third paragraph, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
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December 1,1994
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Gainesville, Florida f l
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i GENERAL PURPOSE FINANCIAL STATEMENTS These basic statements provide a summary overview of the financial position of all funds and account !
groups as well as the operating results of all funds and cash flows of the Proprietary Fund Type. They also serve as an introduction to and summary of the more detailed statements included in the ,
accompanying information section.
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COMBINED CALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30,1994 CITY OF ALACHUA, FLORIDA Governmental Account Groups Fund Types Proprietary Fiduciary General General Totals Special Debt Fund Type Fund Type Fixed Imag-Term (Memorandum Only)
General Revenue Service Enterprise Agency Assets Debt 1994 1993 Aswts Cash and Cash Equivalents $ 87,192 3 37,366 $ 52,649 $ 43,330 $ 220,537 $ 145,779 Investments 105,500 92.922 $ 104,708 303,130 198,022 Receivables (Net of Allowances For Uncollectibles Parenthetically Indicated):
Taxes and Special Assessments 12,700 22,940 35,640 11,369 Accounts ($45,309) 558,416 558,416 553,042 Accrued Interest and Penalties 264 264 264 Other Receivables 7,731 52,511 60,242 23,602 Due From Other Funds 333,341 333,341 26,089 Due From Other Governments 48,758 48,758 30,833 Inventory of Utility Supplies 206,132 206,132 183,368 Prepaid Expenses 57,866 61,037 118,903 108,565 Unbilled Revenue 161,799 161,799 148,582 Restricted Assets:
Cash and Cash Equivalents 611,812 611,812 760,250 Investments 2,455,598 2,455,598 2,761,360 Accrued Interest 6,234 6,234 8,857 Property, Plant and Equipment -
Cost Less Accumulated Depreciation For Proprietary Fund Type: Cost For General Fixed Assets Account Group I1,150,574 $ 2,914,952 14.065,526 13,992,940 Unamortized Bond Issue Costs 476,443 476,443 476,589 Amount Available For Retirement of General Long-Term Debt $ 145,571 145,571 132.237 Amount to be Provided For Retirement of General long-Term Debt 1,486.916 1,486,916 1,517,480 Total Assets $ 320.011 5 37,366 $ 145,571 $ 16,140,167 $ 104,708 $ 2,914,952 $ 1,632,487 $ 21,295,262 $ 21,079,228 See accompanying notes.
3
COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS SEP' EMBER 30,1994 CITY OF ALACHUA, FLORIDA (Concluded)
Governmental Account Groups Fund Types Proprietary Fiducary General General Tetsis Special Debt Fund Type Fund Type Mmed Long-Terin ('L _ - i.. Only)
General Revenue Service Enterprise Agency Assets Debt 1994 1993 Liabilkies and Fund Equky Liabilkies Cash Overdraft 5 231,420 $ 231,420 $ 293,386 Accounts Paysble $ 113,350 215,547 328,897 300,738 Other Accrued Expenses 10.573 22.591 33,164 28,426 Due to Other Funds 333,341 333,341 26,089 Payable From Restricted Assets:
Accrued Interest 469,605 469.605 430,159 Current Portion of Bonds Payable 220,000 220,000 189,000 Customer Deposits 119,405 119,405 115,801 Deferred Revenues and Credits 9,979 387,135 397,114 380,668 Note Payable - Other $ 17,690 17,690 0 Note Payable - Arcadia 1,165,000 1,165,000 1,200,000 Note Payable - FLGFA 389,689 389,689 400,709 Revenue Bonds Payable 14.589,256 14,589,256 14,796,782 Accrued Compensated Absences 42.341 60,108 102,449 83.771 Deferred Corepensation $ 104,708 104,708 0 Total LisbDities 133,902 $ 0 $ 0 16,630,641 104,708 1 0 1,632,487 18.501.738 18,245,529 Fund Equky Contributed Capital 1,865,485 1,865,485 1,865,485 Investment in General Fixed Assets 2,914,952 2,914,952 2,875,070 Retained Earnings:
Reserved For Debt Service and Contingencies 606.6 % 606,6 % 606.236 Unreserved (2,%2,655) (2,%2,655) (2,848,378)
Fund Balances.
Reserved 233,661 145,571 379,232 382,598 Designated 10,706 10,706 8,549 Undesignated (58,258) 37,366 (20,892) (55,861)
Total Fund Equky 186.109 37.366 145,571 (490.474) 0 2,914,952 0 2,793.524 2,833,699 Total Liabilities and Fund Equity $ 320.011 $ 37,366 $ 145,571 $ 16.140,167 $ 104.708 $ 2.914,952 $ I,632,487 $ 21,295.262 $ 21.079,228 See accompanying notes, 4
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l COMCINED STATEMENT OF REVENUES2 EXPENDITURES AND CIIANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES FOR TIIE YEAR ENDED SEITEMBER 30,1994 CITY OF ALACIIUA, FLORIDA i
l Governaiental Fund Types Totals Special Debt (Menneranduin Only)
General Revenue Service 1994 1993 l Revenues Taxes and Special Assessments $ 1,171,445 $ 8,397 $ 0 $ 1,179,842 $ 1,079,648 Licenses and Permits 55,610 0 0 55,610 42,781 1
Intergovernmental 409.441 0 0 409,441 338,335 Charges For Services 113,637 0 0 113.637 47,750 Fines and Forfeitures 97,067 0 0 97,067 37,607 Interest and Miscellaneous 39,428 0 2,819 42,247 43,487 Total Revenues 1,886,628 8,397 2.819 1,897,844 1,589,608 Expenditures Current:
General Government 378,224 0 0 378,224 367,010 Public Safety 1,142,399 0 0 1,142,399 % 3,758 Physical Environment 59,032 0 0 59,032 70,000 Transportation 265,566 0 0 265,566 262,%1 Parks and Recreation 136,770 0 0 136,770 128,097 Debt service 0 0 108.175 108,175 114,004 (Total Expenditures) (1,981,991) 0 (108,175) (2,090,166) (1,904,930)
Excess (Deficiency) of Revenues Over (Under) Expenditures (95,363) 8,397 (105,356) (192,322) (315,322)
Other Financing Sources (Uses)
Transfers in 178,113 0 118,690 2 % ,803 303,782 Transfers Out (118,690) 0 0 (118,690) (121,826)
Proceeds Facen New Debt 19,000 0 0 19,000 0 Proceeds From Refunding Debt 0 0 0 0 1,181,693 Transfer to Refunding Escrow 0 0 0 0 (1,052,681)
Bond issue Costs 0 0 0 0 (36,091)
Total Other Financing Sources (Uses) 78,423 0 118,690 197.113 274,877 Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses (16,940) 8,397 13,334 4,791 (40,445)
Fund Balances, Beginning of Year:
As Originally Reported 203,049 0 132,237 335,286 375,731 Adjustment 0 28,% 9 0 28,% 9 0 As Restated 203,049 28,% 9 132.237 364,255 375,731 Fund Balances, End of Year $ 186,109 $ 37,366 5 145,571 5 369,046 5 335,286 See accompanying notes.
5
COMBINED STA'IEMENT OF REVENUES, EXPENDITURES AND CHANCES IN FUND BALANCES - BUDGET AND ACTUAL CENERAL AND DEBT SERVICE FUND FOR THE YEAR ENDED SEPTEMBER 30,1994 CITY OF ALACHUA, FLORIDA General Fund Debt Service Fund Totals Favorabk Favorable C1..a - __ " . Only)
Budget Actual , Unfavorable)
( Budget Actual (Unfavorable) 1994 1993 Revenues Taxes $ 1,142,364 $ 1,171,445 $ 29,081 $ 0 $ 0 $ 0 $ 1,171,445 $ 1,079,648 Licenses and Permits 52,100 55,610 3,510 0 0 0 55,610 42,781 Intergovernmental 415,030 409,441 (5,589) 0 0 0 409,441 338,335 Charges For Services 46,200 113,637 67,437 0 0 0 113,637 47,750 -
Fines and Forfeitures 78,600 97,067 18,467 0 0 0 97,067 37.607 Interest and Miscellaneous 53,000 39,428 (13.572) 0 2,819 2.819 42,247 43,487 Total Revenues 1,787,294 1.886,628 99,334 0 2,819 2,819 1,889,447 1,589,608 Expenditures Current:
General Government 395,404 378,224 17,180 0 0 0 378,224 367,010 Public Safety 1,018,955 1,142,399 (123,444) 0 0 0 1,142,399 % 3,758 Physical Environment 71,509 59,032 12,477 0 0 0 59,032 70,000 Transportation 282,901 265,566 17,335 0 0 0 265,566 262,061 Parks and Recreation 126,400 136,770 (10.370) 0 0 0 136,770 128,097 D-bt Scrvice 0 0 0 118,690 (108,175) 10,515 108,175 114,004 (Total Expenditures) (1,895.169) (1,981,991) (86,822) (118,690) (108,175) 10.515 (2,090,166) (1,904,930)
Excess (Deficiency) of Revenues Over (Under) Expenditures (107.875) (95,363) 12,512 (118,690) (105,356) 13,334 (200,719) (315,322)
Other Financing Sources (Uses)
Transfers In 178,113 178,113 0 118,690 118,690 0 2 % ,803 303,782 Transfers Out (118,180) (118,690) (510) 0 0 0 (118,690) (121,826)
Proceeds From Refunding Debt 0 0 0 0 0 0 0 1,181.693 Proceeds From New Debt 19.000 19,000 0 0 0 0 19.000 0 Transfer to Refunding Escrow 0 0 0 0 0 0 0 (1,052,681)
Bond Issue Costs 0 0 0 0 0 0 0 (36,091)
Total Other Financing Sources (Uses) 78,933 78,423 (510) 118,690 118,690 0 197.113 274,877 Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses $ (28,942) (16,940) $ 12,002 $ 0 13,334 $ 13,334 (3,606) (40,445)
Fund Balances, Beginning of Year 203,049 132.237 335,286 375.731 Fund Balancr i,d of Year $ 186,109 $ 145,571 $ 331,680 $ 335,286 See accompanying notes, 6
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARhMGS ALL PROPRIETARY FUND TYPES FOR THE YEAR ENDED SEPTEMBER 30,1994 CITY OF ALACHUA, FLORIDA Total Proprietary (Memorandum Fund Type Only)
Enterprise 1993 i Operating Revenues $ 5,312,109 5 4,862,052 Operating Expenses Power Production Expense 2,743,333 2,714,354 Treatment 228,615 200,497 Distribution and Collection 330,250 267,613 Warehousing 55,979 40,853 Customer Accounts 158,121 144,509 General and Administrative 300,625 268,926 Depreciation 444,501 391,832 Taxes 104,439 101,901 (Total Operating Expenses) (4,365,863) (4,130,485)
Operating Income 946,246 731,567 Nonoperating Revenue (Expenses)
Operating Grant 0 8,070 laterest income 104,021 100,445 Interest on Long-Term Debt (965,457) (878,220)
Amortization of Bond Issue Costs (20,884) (17,214)
Miscellaneous income 370 360 Total Nonoperating Revenue (Expenses) (881,950) (786,559)
Income (Loss) Before Opera lag Transfers 64,2 % (54,992)
(Operating Transfers Out) (178,113) (181,956)
Net (Loss) Before Extraordinary item (113,817) (236,948)
Extraordinary Item - (Loss) on Advance Refunding of Long-Term Debt 0 (1,185,197)
Net (Loss) (113,817) (1,422,145)
Retained Earnings (Deficit), Beginning of Year (2,242,142) (819,997)
Retained Earnings (Deficit), End of Year $ (2,355,959) $ (2,242,142)
See accompanying notes, i
7
I I
J COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES FOR THE YEAR ENDED SEPI' EMBER 30,1994 CITY OF ALACHUA, FLORIDA Total Proprietary (Memorandum Fund Type Only)
Enterprise 1993 Cash Flows From Operating Activities Operating Income $ 946,246 $ 731,567 Adjustments to Reconcile Operating Income to Net Cash Provided By Operations:
Depreciation of Plant 444,501 391,832 Amortization (Return) of Decommissioning Costs 3,586 (984)
Provision For Losses on Accounts Receivable 16,000 18,450 Change in Current Assets - (Increase) Decrease:
Accounts Receivable and Unbilled Revenue (78,022) (130,594)
Inventory (Net of Material Salvaged From Retirements of $5,479) (17,285) 15,423 Prepaid Power Costs (34,654) 30,629 Other Prepaid Expenses 3,771 (12,837)
Cha' ige in Current Liabilities - Increase (Decrease):
Accounts Payable and Other Accrued Expenses (21,797) (24,383)
Customer Deposits 3,604 1,688 Net Cash Provided By Operating Activities 1,265,950 1,020,791 Cash Flows From Noncapital Financing Activities Operating Grant 0 8,070 Miscellaneous Income 370 360 Operating Transfers Out to Other Funds (178,113) (201,956)
Operating Transfers in From Other Funds 0 20,000 Net Cash (Used In) Noncapital Financing Activities (177,743) (173,526)
Cash Flows From Capital and Related Financing Activities Extension and Replacement of Plant - Net of Contributions Received in Aid of Construction (481,414) (304,459)
Plant Removal Costs (1,270) (2,366)
Principal Payments on Bonds (189,000) (173,000)
Proceeds From New Bond Issues 0 1,059,632 Interest Paid (913,537) (814,798)
Bond Issue Costs (20,738) (14,230)
Operating Transfers Out to Other Funds (154,089) (49,480)
Operating Transfers in From Other Funds 154,089 49,480 Net Cash (Used In) Capital and Related Financing Activities (1,605.959) (249,221)
See accompanying notes.
8
4 I
COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES FOR THE YEAR ENDED SEPTEMBER 30,1994 CITY OF ALACHUA, FLORIDA (Continued)
Total Proprietary (Memorandum J Fund Type Only) _
)
Enterprise 1993 Cash Flows From Investing Actidties Investments Purchased $ (1,271,239) $ (2,418,372)
Investments Matured 1,577,001 1,521,757 Interest income 116,475 114,055 Net Cash Provided By (Used In) Investing Activities 422,237 (782.560)
Net (Decrease) in Cash, Cash Overdraft and Cash Equivalents (95,515) (184,516)
Cash, Cash Overdraft and Cash F 4 dvalents, October 1,1993 519,237 703,753 Cash, Cash Overdraft and Cash Equivalents, September 30,1994 $ 423,722 $ 519,237 Reconciliation of Cash, Cash Overdraft and Cash Equivalents (Above) to Combined Balance Sheet Captions on Combined Balance Sheet Cash and Cash Equivalents $ 43,330 $ 0 Restricted Assets - Cash and Cash Equivalents 611,812 1,079,436 (Cash Overdraft) (231,420) (560,199)
Total $ 423,722 5 519,237 See accompanying notes.
9
f COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FOND TYPES FOR THE YEAR ENDED SEPTEMBER 30,1994 CITY OF ALACHUA, FLORIDA (Concluded)
Total Proprietary (Memorandum Fund Type Only)
Enterpnse 1993 Schedule of Noncash Investing and Financing Transactions
~
Bond Issue and Refunding Par Amount of Bonds, Issued $ 0 $ 9,000,000 (OriginalIssue Discount) 0 (96,311)
(Issue Costs) 0 (404,605)
(Cash Transferred to Escrow) 0 (7,439,452)
Net Proceeds From New Bond Issue $ 0 $ 1,059,632 Components of Loss on Refunding Principal Amount of Refunded Bonds $ 0 $ 6,536,328 (Unamortized Discount) 0 (78,296)
Accumulated Appreciation - Capital Appreciation Bonds 0 102,316 (Unamortized Bond Issue Costs) 0 (315,092)
Accrued Interest on Refunding 0 8,999 (Cash Transferred to Escrow) 0 (7,439,452)
(Loss) on Refunding $ 0 $ (1,185,197)
Purchase of Turkey Creek Water and Wastewater System Purchase Price $ 0 $ 1,300,000 (Bonds Issued) 0 (1,300,000)
Net Cash Paid $ 0 $ 0 New Special Assessments Increase in Receivable $ 22,940 $ 0 (Increase in Deferred Credit) (22,940)
Nd $ 0 $ 0 See accompanying notes.
10 l
l
NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FLORIDA I
Note 1 - Summary of Significant Accounting Policies ,
The City of Alachua, Florida (the City) is a political subdivision of the State of Florida located in Alachua County. The legislative branch of the City is composed of a five-member elected commission. The City Commission is governed by the City Charter and by state and local laws and regulations. The City Commission is responsible for the establishment and adoption of policy. The execution of such policy is the responsibility of the Commission-appointed City Manager.
The City's major operations include various utility services - electric, water and wastewater as well as police protection, road and street maintenance, parks, recreation and other general ,
government services. The City contracts with Alachua County for the provision of fire service at a fixed cost to the City which is renegotiated annually. The City leases the fire station and equipment to the County at no cost. Sanitation services are provided by a private company, but billed by the City to its customers, The City retains an administrative fee on ,
sanitation services.
The accounting policies of the City conform to generally accepted accounting principles as applicable to governments. The following is a summary of the more significant accounting policies.
Reporting Entity As outlined in GASB Statement No.14, 7he Reporting Entiry, effective for financial statements for periods beginning after December 15, 1992, the financial reporting entity consists of the primary government, organizations for which the primary government is financially accountable, and other organizations whose exclusion would cause the reponing entity's financial statements to be misleading or incomplete. Each potential component unit is individually evaluated using specific criteria outlined in SGAS No.14, to determine whether the entity a) is part of the primary government; b) a component unit which should be included in the reporting entity (blended or discretely presented); or c) an organization which should be excluded from the reporting entity entirely. The principal criteria for classifying a potential component unit include a) the legal separateness of the organization, and b) the financial accountability of the primary government for the potential component unit resulting from either the primary government's ability to impose its will on the potential component unit or the potential component unit's fiscal dependency on the primary government. Based upon the application of these criteria, the following is a brief review of each potential component unit addressed in defining the City's reporting entity.
m Community Redevelopment Agency The Community Redevelopment Agency (the Agency) was created by the City of Alachua Commission in 1982. In evaluating this potential component unit, it was determined that the Agency is not a separate legal entity as it generally cannot transact business in its own name and, therefore, should be included as part of the primary government for reporting purposes. The Agency is presented in the general purpose financial statements of the City as a Special Revenue Fund.
11 r
NOTES TO FINANCIAL STATEMENTS CITY OF ALACIIUA, FLORIDA (Continued)
Note 1 - Summary of Significant Accounting Policies (Continued)
Reporting Entity (Concluded) e Public Finance Authority For Affordable liousing (the Authority)
This potential component unit was created by the City Commission in 1992. The Authority is a separate legal entity capable of suing and being sued and able to purchase property in its own name. By charter, the Authority's Board is composed of the City Commission and the Commission has oversight over all financial activities. Accordingly, the Authority is a component unit of the City. There have been no financial transactions in the Authority during 1994, or since its creation; therefore, no amounts related to the Authority are reported in the accompanying general purpose financial statements.
Fund Accounting The City's accounting records are organized and operated on a fund basis. A fund is defined as a fiscal and accounting entity, with a self-balancing set of accounts recording all financial resources with all related liabilities, reserves and residual entities, or balances or changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives. Amounts received from or payable to other funds are shown in the accounts of an individual fund and separately presented in the accompanying general purpose financial statements until liquidated by payment or an interfund transfer.
The following fund types and account groups are used in accounting for the financial operations of the City.
Governmental Fund Types a General Fund - to account for all financial resources not properly accounted for in another fund.
s Special Revenue Fund - to account for the proceeds of specific revenue resources (other than special assessments, expendable trusts, or major capital projects) that are legally restricted to expenditures for specified purposes. The City uses this fund to account for the activities of the Community Red:velopment Agency.
a Debt Service Fund - to account for the accumulation of resources and payment of general obligation bond principal and interest from these resources. The City uses the Debt Service Fund to account for the accumulation of resources and the payment of principal and interest on the Gulf Breeze and FLGFA loans.
Proprietary Fund Type a Enterprise Funds - to account for operations that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. The City's electric, water and wastewater utility services are accounted for in these funds. In addition, a new fund for Turkey Creek water and wastewater utility services was established in 1993.
12
I NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FLORIDA (Continued)
Note 1 - Summary of Significant Accounting Policies (Continued)
Fund Accounting (Concluded)
Fiduciary Fund Types e Agency Fund - to account for assets held by the City as an agent for other individuals, private organizations, other governments, and/or other funds. The City employees' deferred compensation plan is accounted for in this fund.
Account Groups a The Account Groups are used to establish accounting control and accountability for l
the government's general fixed assets and general long-term debt. These account groups are not considered funds since they do not reflect available financial resources !
and related liabilities.
Measurement Focus The accounting and reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are determined by its measurement focus. Governmental Fund Types are accounted for on a " spending" or " financial flow" measurement focus. This means that only current assets and current liabilities are generally included on the balance sheet. The reported fund balance (net current assets) is considered a measure of "available spendable resources." Governmental Fund Type operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, such statements are said to present a summary of sources and uses of "available spendable resources" during a period.
Fixed assets used in Governmental Fund Type operations (general fixed assets) are accounted for in the General Fixed Assets Account Group, rather than in governmental funds, and long-term liabilities expected to be financed from Governmental Fund Types are accounted for in the General Long-Term Debt Account Group.
The Proprietary Fund Types are accounted for on a cost of services or " capital maintenance" measurement focus. This means that all assets and all liabilities (whether cunent or noncurrent) associated with its activity are included on the balance sheet. The reported fund equity (net total assets) is segregated into contributions and retained earnings components.
The Proprietary Fund Type operating statements present increases (revenues) and decreases (expenses) in net total assets.
The Fiduciary Fund Type for the City, an Agency Fund, is custodial in nature and does not involve measurement of results of operations.
13
NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FLORIDA (Continued)
Note I - Summary of Significant Accounting Policies (Continued)
Basis of Accounting The Governmental Fund Types are maintained on the modified accrual basis of accounting.
Under this method of accounting, revenues are generally recognized when they become measurable and available as net current assets. Revenues which are susceptible to accrual, i.e., being recorded when earned, include property and utility taxes, refuse collection fees and lot clearing and certain other fees. Expenditures are generally recorded on an accrual basis, i.e., when incurred, except as follows: r a Principal and interest on long-term debt are recognized when due; e accumulated vacation and sick pay is not recorded in the General Fund since the current '
amount is immaterial.
The Proprietary Fund Types are maintained on the accrual basis of accounting. This method of accounting relates costs and expenditures to the period in which benefit: of the outlays are received. It is intended to provide an accurate matching of these benefits with associated revenues. Under the accrual basis of accounting, revenues are recognized when earned and measurable, and expenses are recognized when incurred.
Budgeting The City's procedures in preparing and adopting the annual budget are as follows:
m The City Manager is responsible for preparing a proposed operating budget for the upcoming year prior to September 30 that includes estimated revenues, proposed expenditures, and other financing sources and uses, a Public hearings are held to obtain taxpayer comments and suggestions. The budget is enacted through passage of a resolution, which sets spending limits by department.
a The City Manager is authorized to transfer budgeted amounts within any department in any fund, but may not revi;e total departmental expenditures without the approval of the City Commission. The budgetary information for all governmental fund types in the Combined Statement of Revenues, Expenditures and Changes in Fund Balances is reported as amended.
m Budgets are adopted on a basis consistent with generally accepted accounting principles.
Appropriations lapse at the end of the year. Encumbrances are not recorded.
e The budgets for governmental funds which include the General Fund and Debt Service Fund that were either adopted or amended during the year by the City Commission were prepared on the same basis of accounting utilized by those specific fund types.
Comparisons of budgetary data to actual are not required to be reported for proprietary fund types. There was no budget adopted for the Special Revenue Fund.
14
NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FLORIDA (Continued)
Note 1 - Summary of Significant Accounting Policies (Continued)
Receivables Customer accounts receivable are recorded at their net realizable value reduced by an allowance for uncollectible accounts. Property taxes receivable are recorded, if material, offset by deferred revenue for the amount which is not measurable and available at September 30,1994.
Inventory Inventory in the General Fund is charged to expenditures when purchased. Inventory in the Proprietary Fund Types consists of supplies held for repairs or capital improvements, plus nuclear fuel.
Property, Plant and Equipment and Depreciation Property, plant and equipment in the Proprietary Fund Types are recorded at historical cost or at fair market value on the date donated. Ordinary maintenance and repairs are charged to expenses as incurred.
Provision has been made for the depreciation of such property, plant and equipment using the straight-line method with a half-year convention. The straight-line rate is computed using the period of years considered as the normal service life of the property. Such rates are as follows:
Nuclear Plant and Equipment 2.7% to 3.6%
Electric Distribution Plan 2% to 4%
Water Plant 3% to 10%
Wastewater Plant 2.5 %
Other Equipment 10% to 20%
Construction work in progress is not depreciated until completed and placed into service.
Utility plant acquired through grants is depreciated along with other utility plant purchased or constructed.
All other property and equipment owned by the City is reflected at cost in the General Fixed ,
Assets Account Group and shown as an expenditure in the fund purchasing the property or i equipment. Certain improvements such as streets, sidewalks z.nd other infrastructure assets i are capitalized along with other general fixed assets. No provision for depreciation is made l for any general fixed assets.
Bond Discount and Issue Costs Amortization 1 The bond issue costs on the Utility Revenue Bonds of 1993 and 1986 are being amortized l over the lives of the bonds using the straight-line method. The bond discounts on the Utility l Revenue Bonds are being amortized over the life of the bonds using the effective interest l method.
15 i
i
NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FLORIDA (Continued)
Note 1 - Summary of Significant Accounting Policies (Continued)
Capitalized Interest During Construction The City accounts for capitalized interest during construction in accordance with Statement of Financial Accounting Standards No. 34, Capitalization ofInterest Costs, and Statement No. 62, Capitalization of Interest Cost in Situations Invoking Cenain Tax-Exempt Borrowings and Certain Gifts and Grants. No interest expense was capitalized during 1994 on construction-in-progress in any fund or account group.
Long-Term Liabilities Because of their spending measurement focus, expenditure recognition for governmental fund types is limited to exclude amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type liabilities. They are instead reported as liabilities in the General Long-Term Debt Account Group.
Compensated Absences The City accrues accumulated unpaid vacation and sick pay when incurred, if material, in the Proprietary Funds and the General Long-Term Debt Account Group. Amounts representing the current liability for unused annual and sick leave in governmental fund types are immaterial. Therefore, the entire liability for governmental fund types is recorded in the General Long-Term Debt Account Group.
Personnel policies allow permanent, full-time employees to accumulate a maximum of twenty-five days vacation leave and sixty days sick leave. One week of vacation time is granted if sixty days sick leave is accumulated. Employees are paid the balance of their accumulated vacation leave, in full, upon termination. Also upon termination, employees are paid the balance of their accumulated sick leave, up to a maximum of eighty hours.
Revenue Recognition Utility revenues are recognized when customers are billed unless there has been a significant change in meter reading rates. In that event, unbilled or deferred revenues are recorded for consistency.
Restricted grant revenues which are received, but not expended, are recorded as deferred revenues in the liability section of the balance sheet.
Property Taxes Under Florida law, the assessment of all properties and the collection of all county, municipal and school board property taxes are consolidated in the offices of the County Property Appraiser and County Tax Collector. The laws of the state regulating tax assessments are also designed to assure a consistent property valuation method state-wide. State Statutes permit municipalities to levy property taxes at a rate of up to 10.00 mills. The City's millage rate for the 1994 fiscal year was 5.50 mills.
16
NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FLORIDA (Continued)
Note 1 - Summary of Significant Accounting Policies (Concluded)
Property Taxes (Concluded)
The tax levy of the City is established by the City Commission prior to October 1 of each year and the Alachua County Property Appraiser incorporates the City millages into the total ,
tax levy, which includes the County and the County School Board tax requirements.
All propeny is reassessed according to its fair market value January 1 of each year. Each assessment roll is submitted to the Executive Director of the State Department of Revenue for review to determine if the rolls meet all of the appropriate requirements of State Statutes.
All taxes are levied on November 1 of each year or as soon thereafter as the assessment roll is certified and delivered to the County Tax Collector. All unpaid taxes become delinquent on April 1 following the year in which they are assessed. Discounts are allowed for early payment at the rate of 4% in the month of November,3% in the month of December,2%
in the month of January, and 1% in the month of February. The taxes paid in March are without discount.
On or prior to June 1 following the tax year, certificates are sold for ali delinquent taxes on real property. After sale, tax certificates bear interest of 18 % per year or at any lower rate bid by the buyer. Application for a tax deed on any unredeemed tax certificates may be made by the certificate holder after a period of two years. Unsold certificates are held by the County. ,
Delinquent taxes on personal property bear interest at 18% per year until the tax is satisfied ,
either by seizure and sale of the propeny or by the five-year statute of limitations.
Total Columns on the Combined Statements Total columns on the combined statements are captioned " Totals (Memorandum Only)" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or cash flows in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation.
Interfund eliminations have not been made in the aggregation of this data. The totals for 1993 are presented for the purpose of additional analysis and are not a required part of the general purpose financial statements.
Note 2 - Deposits and Investments All monies collected by the City are required to be deposited in accordance with the laws of the State of Florida. Siate Statutes authorize the City to invest in the following:
e Direct obligations of, or obligations guaranteed by, the U.S. Government; e Interest-bearing time deposits or savings accounts in qualified institutions; a Obligations of the Federal Farm Credit Banks; e Obligations of the Federal National Mortgage Association; and a The Local Government Surplus Funds Trust Fund.
I 17
NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FLORIDA (Continued)
Note 2 - Deposits and Investments (Continued)
Deposits At year end, the carrying amount of the City's deposits was a net overdraft position of
$32,919 and the bank balance was $251,798. All deposits of the City are maintained in qualified public depositories. In addition, the City had $474,617 deposited with a fiscal agent as of September 30,1994 for the payment of revenue bond and other interest on October 1.
The Florida Security for Public Deposits Act; Chapter 280 of the Florida Statutes, provides that qualified public depositories must maintain eligible collateral having a market value equal to 50% of the average daily balance for each month of all public deposits in excess of any applicable deposit insurance held by the depository during the twelve months immediately preceding the date of any computation of the balance. As such, the depository is not required to hold collateral in the City's name nor specify which collateral is held for the City's benefit. In the event of default, the Public Deposit Security Trust Fund, as created under the laws of the State of Florida, would be required to pay the City for any deposits not covered by depository insurance or collateral pledged by the depository as previously described.
Investments Investments are carried at cost or amortized cost. The carrying amount and market value of investments owned by the City of Alachua at September 30,1994 was as follows:
Carrying Market Type of Investment Amount Value Ceruficates of Deposit,2.50% to 4.10% Interest, Varying Maturities Through October 11,1995 $ 1,894,421 $ 1,894,421 State Board of Administration of Florida Local Government Pooled Investment Account, Variable Interest Rate (4.19%
at September 30,1994) 159,231 159,231 Florida Municipal Power Agency (FMPA) CR-3 Pooled Investment
- 103,301 97,507 Account United States Treasury Bonds, $575,000 Par Value,7.625%
Interest, Maturing February 15,2007 563,376 564,758 City of Arcadia - Debt Service Reserve 92,922 92,922 ICMA Deferred Compensation Account 104.708 104.708 Total $ 2,917,959 $ 2.913.547 All the above investments are insured or registered, or held by the City or its agent in the City's name. The State Board of Administration's deposits in Tallahassee are maintained in an investment pool which invests primarily in commercial paper, repurchase agreements, bankers acceptance notes and U.S. Government obligations. The FMPA account represents a 2.2214 % interest in an investment pool which invests primarily in mid-and long-term U.S.
Government obligations. The securities in the pool are registered in the name of SunBank, N.A. as trustee for the FMPA (CR-3) participants. The City of Arcadia debt service reserve account is an investment pool held by the Trustee for the City of Arcadia bond issue, which is invested in FNMA mortgage notes. The ICMA deferred compensation account is an investment pool managed by the International City Managers Association.
18
NOTES TO FINANCIAL STA'IEMENTS CITY OF ALACHUA, FLORIDA (Continued)
Note 2 - Deposits and Investments (Concluded)
Investments (Concluded)
The State Bc.rd of Administration account is classified with " Cash and Cash Equivalents" on the balance sheets because the investment has an original maturity of ninety days or less, Note 3 - Inventory ,
l Inventory in the proprietary fund types at September 30,1994 consists of the following: '
Electric Utility Supplies $ 107,953 Watc/ Sewer Supplies 22,391 Nuclear Fuel $2,915 Nuclear Plant Materials Inventory 22,873 Total $ 206,151 The utility supplies and plant inventory are valued at cost as determined by the average unit cost method. The City's portion of nuclear fuel inventory at the CR-3 nuclear generating -
facility is recorded at amortized cost.
Note 4 - Detail of Property, Plant and Equipment General Fixed Assets Account Group A summary of changes in general fixed assets for the year follows:
Balance (Removals and Balance 10/1/93 Additions Adjustments) 9/30/94 City Park - Structures and improvements 5 19,885 5 05 05 19,885 City IIall - Building 157,625 0 0 157,625 City llall - Equipment, Furnishings and Vehicles 68,505 0 0 68,505 Fire Station 72,169 0 0 72,169 Police Station 69.094 0 0 69,094 Rolling Green - Land and Buildings 647,699 0 0 647,699 Rolling Green - Improvemer'*, 14,653 0 0 14,653 Parking Lots Land 43,189 0 0 43,189 Street Paving and Sidewalks 994,189 0 0 994,189 Fire Trucks and Other Equipment 178,865 0 0 178,865 Mosquito Spraying Equipment 8,725 0 0 8,725 Land - Other 147,791 24,000 0 171,791 Police Department - Cars and Equipment 283,662 1,693 0 285,355 Streets and Roads Equipment 76,048 6,925 0 82,973 Misce!!aneous 11,709 0 0 11,709 Parks and Recreation - Equipment 30,107 0 0 30,107 Physical Environment - Equipment $1,155 7.264 0 58,419 Total Property, Plant and Equipment - At Cost $ 2,875,070 $ 39,882 $ 05 2.914,952 19
I i
c NOTES TO FINANCIAL STATEMENTS i CITY OF ALACHUA, FLORIDA i (Continued)
- Note 4 - Detail of N,gity, Plant and Equipment (Concluded)
Proprietary Fund Types A summary of property, plant and equipment in the proprie:ary fund types at September 30, 1994 follows:
t Nuclear Generating Plant and Equipment $ 572,827 ;
Electric Distribution Plant and Equipment 5,466,087 Water Plant and Equipment 3,229,903 Wastewater Plant and Equipment 4,677,471 Turkey Creek Water and Wastewater Plant and Equipment 1,368, % 8 15,315,256 (Accumulated Depreciation) (4,164,682) ,
Total Utility Plant - Cost less
{
Accumulated Depreciation $ 11,150,574 4
Nuclear generating plant and equipment represents the cost of the City's 0779% undivided j interest in tue Dorida Power Corporation CR-3.
4 Note 5 - Long-Tenn Debt I 4
l- General Long-Tenn Debt :
- The following tabulation summarizes the changes in the City's general long-term debt account ;
group during the year ended September 30,1994: ;
1 Balance New (Principal Balance i 10/1/93 Debt Pald) 9/30/94 l City of Arcadia, Florida, l Dedicated Poolloca! l Government Revenue Bonds, ;
- Series 1993 $ 1,200D30 $ 0 $ (35,000) $ 1,165,000 l Florida local Government !
Finance Authority, Govemment Unit lean i
- Program 400,709 0 (11,020) 389,689 Note Payable - Other 0 19,000 (1,310) 17,690 Compensated Absences 49,008 11,100 0 60,108 l
)
, Total $ 1.649,717 $ 30.100 $ (47,330) $ 1,632,487 -l l
20
NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FLORIDA (Continued)
Note 5 - Inng-Tenn Debt (Continued)
General Long-Term Debt (Continued)
City of Arcadia, Morida -Dedicated Pool Local Government Revenue Bonds, Series 1993 On July 1,1993, the City of Alachua, Florida executed a loan agreement with the City of Arcadia, Florida (the Sponsor), and NationsBank of Florida, N.A. (the Trustee), to borrow S1,200,000 from the Sponsor's $45,455,000 IM Government Revence Bonds, Series 1993, r Dedicated Pool. The Sponsor issued the bonds on August 10, 1993 and deposited the proceeds with the Trustee to fund the pool, available to governmental entities for financing and refinancing certain qualified projects.
The City of Alachua used the proceeds to refinance the balance due on a loan from the City of Gulf Breeze. The City of Arcadia loan is evidenced by a Governmental Unit Note, which is payable solely from the City's Local Option Gas Tax revenues and Guaranteed Entitlement Revenues (the Pledged Revenues).
The loan agreement required the establishment of the following accounts:
Revenue To collect the Pledged Revenues.
Sinking To accumulate sufficient monies to pay interest on the next semiannual interest date (December 1 and June 1), to pay principal coming due annually and to make required " Reserve Payments," if any.
Reserve To initially accumulate the maximum annual debt service requirement of
$92,922.
In accordance with the loan agreement, money on deposit in the revenue wat must be disbursed in the following order: i a To satisfy current debt service requirements of the note; e to provide for the Reserve Payments, if any, when due (in the event the Reserve Account is insufficient);
e to the payment of any additional Parity Bonds; a to the payment of any junior lien obligations; and a for any other lawful purpose.
i 21 ,
I
NOTES TO FINANCIAL STATEMENTS CITY OF ALACIIUA, FLORIDA (Continued)
Note 5 - Long-Term Debt (Continued)
General Long-Term Debt (Continued)
City of Arcadia, Florida - Dedicated Pool Local Government Revenue Bonds, Series 1993 (Concluded)
The note carries a true interest cost rate of 5.375% and matures on December 1,2014. The following tabulation summarizes remaining interest and principal payment requirements of the note:
Fiscal Year Ending September 30 Principal Interest Total 1995 $ 35,000 $ 55,985 $ 90,985 1996 35,000 54,846 89,846 1997 35,000 53,576 88,576 1998 40,000 52,122 92,122 1999 40,000 50,503 90,503 Thereafter 980,000 491,580 1,471,580 Total $ 1,165,000 $ 758,612 $ 1,923,612 Florida Local Government Finance Authority - Government Unit Loan Program On September 26,1990, the City adopted Resolution R-90-17 authorizing the borrowing of
$425,000 from the Florida Local Government Finance Authority (FLGFA), Governmental Unit Loan Program, to provide funds for the repayment of a $300,000 General Obligation Note to First National Bank of Alachua, Florida, and to finance certain other qualified projects, primarily street improvements. FLGFA, a public body corporate and politic of the State of Florida (the Sponsor) had issued $427,500,000 Government Unit Loan Program Revenue Bonds, Series 1986 A through E on December 1,1986, and deposited the proceeds with Sun Bank (the Trustee) for the purpose of financing or refinancing qualified projects for any public agency of a state or local government. The loan is evidenced by a Governmental Unit Note which is payable solely from the City's Half-Cent Sales Tax Revenues (the Pledged Revenues).
The loan agreement required the establishment of the following accounts:
Loan Fund To receive the proceeds of the loan and disburse the project costs.
Revenue Fund To collect the Pledged Revenues.
Sinking Fund To accumulate sufficient monies to make the next debt service payment.
22
NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FLORIDA (Continued)
Note 5 - Long-Term Debt (Continued)
General Long-Tenn Debt (Concluded)
Florida Local Govenunent Finance Authority - Govenunent Unit Loan Program (Concluded)
In accordance with the loan agreement, money on deposit in the Revenue Fund must be disbursed in the following order:
a To satisfy current debt service requirements of the note; a to the payment of any additional Parity Bonds; a to the payment of any junior lien obligations; and a for any other lawful purpose.
The note is payable over 305 months beginning November 1,1990 at a variable interest rate (4.63% at September 30,1994). The following tabulation summarizes remaining interest and principal payment requirements of the note, assuming an interest rate of 4.63% for the remaining term:
Fiscal Year Ending September 30 Principal Interest Total 1995 $ 10,837 $ 17,814 $ 28,651 1996 11,349 17,302 28,651 1997 11,886 16,765 28,651 1998 12,448 16,203 28,651 ,
1999 13,037 15,614 28,651 Thereafter 330,132 142,611 472,743 Total $ 389,689 $ 226,309 $ 615,998 Note Payable - Other This unsecured note is payable over sixty months beginning May 6,1994 at $385 per month, ;
including 8% interest. l l
General Long-Term Debt - Summary The following tabulation indicates the principal retirement of general long-term debt by fiscal !
year:
i 23
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NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FLORIDA (Continued)
Note 5 - Long-Term Debt (Continued)
General Long-Tenn Debt - Summary (Concluded)
Note Fiscal Year Ending Gulf Payable - Total ;
September 30 Breeze FLGFA Other Principal
!$3 $ 35,000 $ 10,837 $ 3,328 $ 49,165 1996 35,000 11,349 3,605 49,954 l 1997 35,000 11,886 3,904 50,790 1998 40,000 12,448 4,228 56,676 1999 40,000 13,037 2,625 55,662 Thereafter 980,000 330,132 0 1,310,132 Total $ 1,165,000 $ 389,689 $ 17,690 $ 1,572,379 Proprietary Fund Types Utility Acquisition Bonds, Series 1993 On September 23,1993, the City signed a Memorandum of Interest to purchase a private water and wastewater system in the Turkey Creek recreational residential community in Alachua. The memorandum bound the City to the $1,300,000 purchase price and set the effective date of the sale, including the transfer of property and customer balances, as of September 23, 1993. Specific details of the transfer were still pending at September 30, 1994.
On October 18, 1993, the City adopted Resolution R-93-24 authorizing the issuance of
$1,300,000 Utility Acquisition Bonds, Series 1993 (the 1994 Bonds) to provide the necessary funds for the acquisition. The bonds are secured by the gross revenues of the combined electric, water and wastewater utility systems of the City, but is subordinate to the secured interests of the bondholders in the other outstanding revenue bonds of the City.
The bonds were issued without premium or discount and are payable at 7% interest, with interest payable semiannually beginning April 1,1994 and principal payable annually beginning Or.ober 1,1994.
24
NOTES TO FINANCIAL STATFAfENTS CITY OF ALACHUA, FLORIDA (Continued)
Note 5 - Long-Term Debt (Continued)
Proprietary Fund Types (Continued)
Utility Acquisition Bonds, Sedes 1993 (Concluded)
The following tabulation summarizes principal and interest payments on the 1994 bonds:
Fiscal Year Ending ,
September 30 _ Pdncipal Interest Total 1995 $ 20,000 $ 90,300 $ 110,300 1996 20,000 88,900 108,900 1997 25,000 87,325 112,325 1998 25,000 85,575 110,575 1999 25,000 83,825 108,825 2000 30,000 81,900 111,900 2001 30,000 79,800 109,800 2002 35,000 77,525 112,525 2003 35,000 75,075 110,075 2004 40,000 72,450 112,450 2005 40,000 69,650 109,650 2006 45,000 66,675 111,675 2007 45,000 63,525 108,525 2008 50,000 60,200 110,200 2009 55,000 56,525 111,525 2010 55,000 52,675 107,675 2011 60,000 48,650 108,650 2012 65,000 44,275 109,275 2013 70,000 39,550 109,550 2014 75,000 34,475 109,475 2015 80,000 29,050 109,050 2016 85,000 23,275 108,275 2017 90,000 17,150 107,150 2018 95,000 10,675 105,675 2019 105,000 3,675 108,675 Total $ 1,300,000 $ 1,442,700 $ 2,742,700 1
25
NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FLORIDA (Continued)
Note 5 - Long-Term Debt (Continued)
Proprietary Fund Types (Continued)
Utility Refunding Revenue Bonds, Series 1993 '
On March 31, 1993, the City adopted Resolution R-93-3, authorizing the issuance of ,
$9,500,000 Utility Refunding Revenue Bonds, Series 1993. The bonds were issued at a par amount of $9,000,000 to provide a portion of the funds required: a) to advance refund the City's outstanding Utility Revenue Bonds, Series 1990 and a portion of the City's outstanding Utility Refunding Revenue Bonds, Series 1986; b) to construct and install certain facilities constituting water and wastewater capital improvements; and c) to pay a portion of the costs of issuance.
Gross revenues of the system, plus utilities service taxes are pledged as collateral for the revenue bonds on a parity and rank equally as to lien on, and source and security for payment with the City's outstanding Series 1979 bonds and the remaining Series 1986 bonds.
The $9,000,000 issue consists of $1,355,000 of serial bonds maturing from 1994 to 2009, i with stated interest rates of 3% to 5.5%, $1,635,000-5.625% Term Bonds due April 1, !
2012, sold at a price of 98.5% of par and $6,010,000-5.75% Term Bonds, due April 1, 2020 at 99% of par. The Term Bonds are subject to mandatory redemption prior to their !
stated maturity dates as shown below. ;
interest is payable semiannually on each April 1 and October 1, with principal due annually on October 1. The following tabulation summarizes principal and interest payments on the 1993 bonds.
Fiscal Year Ending September 30 Principal Interest Total 1995 $ 15,000 $ 508,990 $ $23,990 1996 20,000 508,435 528,435 l 1997 15,000 507,635 522,635 1998 20,000 506,990 526,990 l 1999 20,000 506,090 526,090 '
2000 20,000 505,150 525,150 l 2001 25,000 504,190 529,190 2002 25,000 502, % 5 527, % 5 2003 20,000 501,715 521,715 2004 25,000 500,695 525,695 2005 25,000 499,395 524,395 2006 25,000 498,070 523,070 2007 390,000 486,726 876,726 2008 205,000 479,666 684,666 2009 490,000 464,494 954,494
)
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NOTES TO FINANCIAL STATEMENTS CITY OF ALACIIUA, FLORIDA (Continued)
Note 5 - Long-Tenn Debt (Continued)
Proprietary Fund Types (Continued)
Utility Refunding Revenue Bonds, Series 1993 (Concluded)
Fiscal Year Ending September 30 Principal Interest Total 2010 $ 515,000 $ 437,544 5 952,544 2011 545,000 408,575 953,575 2012 575,000 377,919 952,919 2013 610,000 345,575 955,575 2014 640,000 310,500 950,500 2015 680,000 273,700 953,700 2016 720,000 234,600 954,600 2017 760,000 193,200 953,200 2018 805,000 149,500 954,500 2019 850,000 103.213 953.213 2020 945,000 54,337 999,337 Total $ 8,985,000 $ 10,369,869 $ 19,354,869 Allocated Between Proprietary Funds Unamortized Carrying Par Discount Value Electric Fund 5 6,178,841 $ (61,375) $ 6,117,466 Wastewater Fund 1,685,945 (16,747) 1,669,198 Turkey Creek Fund 1,120,214 (11,127) 1,109,087 Total $ 8,985,000 $ (89,249) $ 8,895,751 The 1993 bonds are considered additional Parity Bonds, issued under the authority of Original Resolution R-86-10 (which authorized the issuance of the Utility Refunding Revenue Bonds of 1986), The covenants and pledges contained in the Original Resolution regarding the establishment and maintenance of various funds and accounts for the 1986 bonds are applicable to the 1993 bonds. The Reserve Account established in the Original Resolution is applicable pro-rata to the 1993 bonds, and the payments made into said Reserve Account are increased proportionately to provide a reserve for both the 1993 bonds and the remaining 1986 bonds equal to the maximum annual combined bond service requirement, in addition to the refunding proceeds, $1,003,318 was deposited into a Construction Fund established by the bond resolution to be used for water and wastewater capital improvements.
Utility Refunding Revenue Bonds of 1986 On May 19,1986, the City adopted a resolution to issue the Utilities Refunding Revenue Bonds . Series 1986. These bonds were issued pursuant to a multi-purpose plan including the advance refunding of certain of the City's utility refunding and revenue bonds, The refunding portion of the proceeds was deposited in an irrevocable trust with an escrow agent 27
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NOTES TO FINANCIAL STATEMENTS l CITY OF ALACHUA, FLORIDA !
(Conshnued) !
I Note 5 - Long-Tenn Debt (Ceniinmed) l t
Propdetary Fund Types (Continued)
Utility Refunding Revenue Bon % of 1986 (Continued) to provide for all future debt service payments on the refunded bonds. As a result, the 1983 !
bonds and all other refunded bonds are considered to be defeased, and the trust account assets j and liabilities of the defeased bonds are not included in the financial statements of the City i of Alachua, Florida.
The 1986 bonds were issued on a parity and rank equally as to lien on and source and l security for payment from gross revenues and excise taxes as the Utilities Revenue Bond of 1979. Gross revenues of the electric, water and wastewater utility systems, plus utilities service taxes are pledged as collateral for the refunding bonds which have a coupon rate ,
ranging from 6.15% to 7.80%.
The $7,750,000 issue consisted of $1,795,000 of serial bonds maturing from 1991 to 2000, and $5,955,000 of term bonds,~$2,495,000 due in 2007 and $3,460,000 due in 2016, but which are subject to mandatory redemption in earlier years as tabulated below at no premium.
All of the outstanding term bonds due in 2016, with the exception of $255,000, subject to mandatory redemption in 2008, were advance refunded through the issuance of the
$9,000,000 Utility Refunding Revenue Bonds, Series 1993.
The following tabulation summarizes remaining interest and principal payment requirements of the 1986 issue:
Fiscal Year Ending September 30 Principal Interest Total 1995 $ 170,000 $ 304,469 $ 474,469 1996 180,000 292,379 472,379 1997 195,000 279,259 474,259 1998 205,000 264,731 469,731 1999 225,000 249,151 474,151 2000 245,000 231,995 476,995 2001 255,000 213,252 468,252 2002 275,000 193,490 468,490 2003 300,000 172.177 472,177 2004 320,000 148,928 468,928 2005 350,000 124,128 474,128 2006 375,000 95,002 470,002 2007 620,000 67,940 687,940 2008 255,000 19,890 274,890 Total $ 3,970,000 $ 2,656,791 $ 6,626,791 28
l NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FLORIDA (Continued)
Note 5 - Long-Term Debt (Continued)
Proprietary Fund Types (Continued)
Utility Refunding Revenue Bonds of 1986 (Concluded)
Aliocated Between Proprietary Funds Unamortized Carrying Par Discount Value -
Electric Fund $ 2,157,695 - $ (27,988) $ 2,129,707 Wastewater Fund 1,812,305 (23,507) 1,788,798 Total $ 3,970,000 $ (51,495) $ 3,918,505 The bond resolution required the establishment of the following accounts:
Revenue To collect electric, water and wastewater revenues.
Operation and Maintenance To pay for cost of operation and maintenance of the utility i system.
Bond and Interest Sinking To accumulate sufficient monies to pay interest on the next semiannual interest date (October 1 and April 1) and to pay principal coming due on serial bonds.
Bond Amortization To accumulate monies for payment of amonization installments coming due on term bonds.
Reserve To accumulate monies to (1) pay cost of repairs and replacement to utility system; (2) pay for improvements to i the system; (3) pay bond principal and interest when other l accounts are insufficient. '
In accordance with the bond resolution, operating revenues from the utility system must be disbursed in the following order-e To satisfy current debt service requirements of serial and term bonds; s to fund a reserve account equal to the maximum annual bond service requirement; e to meet operating and maintenance expenses before depreciation; a for any other lawful purpose.
4 Utilities Revenue Bond of 1979 On August 6,1979, the City adopted a resolution to issue the Utilities Revenue Bond of 1979. The bond was issued on December 17, 1979, to partially finance the cost of the construction of additions to the utility system. :
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NOTES TO FINANCIAL STATEMENTS
- CITY OF ALACIIUA, FLORIDA (Continued)
Note 5 - Long-Term Debt (Continued)
Proprietary Fund Types (Continued)
Utilities Revenue Bond of 1979 (Concluded)
Net utility revenues and utilities service taxes are pledged as collateral for the revenue bond which has a coupon rate of 5%. The lien on revenues by the 1979 bond is equal to the Utilities Refunding Revenue Bonds of 1986 and 1993. Amounts deposited in the revenue fund created by the bond resolution must be disbursed in the following order:
m To meet operating expenses.
e To satisfy debt service requirements.
e To fund a reserve account to be used for repairs, improvements and to satisfy debt '
service.
The issue consists of $830,800 of Serial Bonds - $135,800 of which has been paid and the remainder which matures as indicated in the following schedule:
Fiscal Year Ending September 30 Principal Interest Total 1995 $ 15,000 $ 34,750 $ 49,750 l 1996 15,000 34,000 49,000 1997 16,000 33,250 49,250 1998 17,000 32,450 49,450 1999 18,000 31,600 49,600 2000 18,000 30,700 48,700 2001 19,000 29,800 48,800 2002 21,000 28,850 49,850 2003 21,000 27,800 48,800 2004 23,000 26,750 49,750 l
2005 24,000 25,600 49,600 2006 25,000 24,400 49,400 2007 26,000 23,150 49,150 2008 27,000 21,850 48,850 2009 29,000 20,500 49,500 2010 30,000 19,050 49,050 l 2011 32,000 17,550 49,550 2012 33,000 15,950 48,950 2013 35,000 14,300 49,300 2014 37,000 12,550 49,550 2015 38,000 10,700 48,700 2016 40,000 8,800 48,800 2017 43,000 6,800 49,800 ;
2018 45,000 4,650 49,650 2019 48,000 2,400 50,400 Total $ 695,000 $ 538,200 $ 1,233,200 30 l
NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FLORIDA (Continued)
Note 5 - Long-Term Debt (Concluded)
Proprietary Fund Types (Concluded) l Utility Revenue Bond of 1979 (Concluded)
Summary of Principal Matudties Required For Next Five Years on Long-Tenn Debt Principal Required During Hscal Year Ending September 30 -
1995 1996 1997 1998 1999 General long-Term Debt $ 49,165 $ 49,954 $ 50,790 $ 56,676 5 55,662 Utility Acquisition Bonds, ,
Series 1993 20,000 20,000 25,000 25,000 25,000 Utility Refunding Revenue Bonds, Series 1993 15,000 20,000 15,000 20,000 20,000 Utility Refunding Revenue Bonds, i
Series 1986 170,000 180,000 195,000 205,000 225,000 '
Utility Revenue Bond, Series 1979 15,000 15,000 16,000 17,000 18,000 Total 5 269,165 $ 284,954 $ 301,790 $ 323,676 $ 343,662 Interest Interest paid (Governmental Fund Types) or accrued (Enterprise Funds) amounted to $62,155 .
in the Debt Service Fund, $616 in the General Fund and $957,738 in the Proprietary Fund Types (including amortization of bond discounts) for the fiscal year ended September 30, 1994. All interest in the Proprietary Fund Types was charged to interest expense.
Note 6 - Prior Period Adjustment Beginning fund balance in the Special Revenue Fund has been restated to aeport the balance i in the cash account of the Community Redevelopment Agency at September 30,1993. The activity of the Agency was erroneously excluded from the financial statements of the City prior to that date. t Note 7 - Restricted Assets The required balances and the actual carrying values of the restricted asset accounts in the Enterprise Funds at September 30,1994 are as follows:
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i NOTES TO FINANCIAL STATEMENTS :
CITY OF ALACIIUA, FLORIDA l (Continued) l Note 7 - Restricted Assets (Concluded) l Electric Water Wastewater Turkey Creek Totals Required Actual Required Actual Regelred Actual Required Actual Required Actual Revsoue Bond Accounts:
Construcuan Account 5 50.632 1 16,948 $ 0 $ 0 $ 0 1 0 $ 932.812 $ 620,000 $ 983.444 5 636.948 smkmg Fund 261,995 272,495 24,875 0 237,234 288.789 65,500 65,500 589,604 626,784 >
' Reserve Account 217,995 217,995 43,320 40,000 731,841 731,841 57,165 57,165 1,050,321 1,047,001 ,
Bond Amoruzanon Account 0 0 0 0 563,376 563.376 0 0 563.376 563,376 Irderest Recesvable 0 0 0 0 0 6,234 0 0 0 6,234 spectl Assesunent Accounts 134,977 90.000 0 0 0 0 0 0 134.977 90,000 Customer Deposits 119,405 0 0 0 0 0 0 0 0 119.405 CR-3 Decomnussiomns Account 103,30) 103,301 0 0 0 0 0 0 103,301 103,301 Impact Fee Fund 41.921 0 0 0 0 0 0 0 41,921 0 Total Required 5 930.226 5 68.195 51,532.451 5 1.055.477 5 3.586.349 Total Actual $ 700,739 --
$ 40.000 $1.590,24C ' 5 742,665 $3.073,644 The deficiencies in the various restricted asset accounts are the result of the City utilizing these funds for operating expenditures in violation of bond covenants, contractual agreements and City ordinances.
It is the City's policy to record all debt service cash accounts related to the 1990 issue in the electric fund, the 1986 issue in the Wastewater Fund, and the 1979 issue in the Water Fund.
Cash accounts relating to the 1993 issue have been allocated to the electric fund (if related !
to the refunding of the 1990 issue), the wastewater fund (if related to the refunding of the 1986 issue) and to the Turkey Creek fund (if new money).
Special assessment accounts are recorded in both the General Fund and Electric Fund based on the required expenditure provisions of the original ordinance. The Electric Fund's required portion of the restricted special assessment account is offset by a deferred credit in the liability section of the balance sheet which will be amortized against plant-in-service as improvements are constructed.
The CR-3 Decommissioning Account is required by state law to accumulate funds for the City's share of the decommissioning costs of the CR-3 nuclear power plant, The City's contribution to this account was $3,586 plus interest during 1993, The required cash balance ;
in the decommissioning account is offset by a deferred credit on the balance sheet.
The Impact Fee Fund represents prepaid impact fees and is also offset by a deferred credit. l 1
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NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FLORIDA (Continued)
Note 8 - Interfund Receivables and Payables Interfund transactions are normally recorded through a consolidated cash account instead of interfund receivables and payables. Following is a summary of interfund receivables and payable at September 30,1994:
Due From Due To Amount Enterprise - Turkey Creek - Water /
Wastewater (Operating Account) Enterprise - Electric $ 20,529 Enterprise - Electric Enterprise Turkey Creek -
Waste / Wastewater (Construction Account) 312,812 Total 5 333,341 Following is a summary of interfund transfers during 1994:
Transfers in Governmental Enterprise Debt Transfers Out General Service Water Total Governmental ,
General $ 0 $ 118,690 $ 0$ 118,690 )
Enterprise Electric:
Capital Financing 0 0 154,089 154,089 Noncapital Financing 178,113 0 0 178,113 I Totals $ 178,113 $ 118,690 $ 154,089 5 450,892
}
l l Note 9 - Fund Balances - Reserves and Designations Fund balances are reserved and designated within the governmental fund types as follows:
Debt General Service Reserved Special Assessments:
Roads and Streets $ 61,750 $ 0 l Recreation 1,287 0 Fire Service 54,311 0 ,
Police Services 1,021 0 Prepaid Expenses 57,866 0 Police Education 631 0 Fire Station Improvements 56,795 0 Debt Service 0 145,571 Total Reserved Fund Balances $ 233,661 $ 145,571 Designated Police Operations $ 10,706 $ 0 33
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NOTES TO FINANCIAL STATEMENTS !
CITY OF ALACHUA, FLORIDA l (Continued) i 1
Note 9 - Fund Balances - Reserves and Designations (Concluded)
Reserves earmark a portion of fund equity as (1) not available for appropriation or expenditure, or (2) legally restricted to a specific future use. Designations of fund equity i represent management's tentative spending plan. l Note 10 - Changes in Fund Equity - Enterprise Funds Following is a summary of the changes in fund equity - enterprise funds for the year ended September 30,1994: i Fund Equity - October 1,1993 $ (376,657)
Net (Loss) - All Enterprise Funds (113,817) i Fund Equity - September 30,1994 $ (490,474) i Note 11 - Excess of Expenditures Over Budget and Deficit Equity Balances For excesses of actual expenditures over budgeted appropriations for governmental fund 2
types, please see page 6 of the financial statements.
I I
The following individual funds show deficit equity balances at September 30,1994 in the l amounts shown:
1 Fund Type Deficit General Undesignated Fund Balance $ 58,258 Enterprise Electric Unreserved Retained Earnings 3,193,305 Wastewater Unreserved Retained Earnings 734,982 Turkey Creek Water / Wastewater Unreserved Retained Earnings 40,679 Note 12 - Segment Information - Proprietary Fund Types Turkey Creek Water /
Electric Water Wastewater Wastewater Fund Fund Fund Fund Operating Revenues $ 4,413,342 $ 248,611 $ 411.092 $ 239,064 Depreciation 183,311 99,407 122,294 39,489 Operating income (less) 888,680 (71,709) 11,378 117,897 Nonoperating Revenues (Expenses) (531,534) (34,028) (175,244) (141,144)
Operating Transfers in (Out) (332,202) 0 154,089 0 34 l 1
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NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FLORIDA (Continued)
Note 12 - Segment Information - Proprietary Fund Types (Concluded)
Turkey Creek Water /
Electric Water Wastewater Wastewater Fund Fund Fund Fund Net Income (loss) $ 24,944 $ (105,737) $ (9,777) $ (23,247)
Property, Plant and Equipment Additions 253,846 7,489 156,689 68,967 Contributions - Current Year 5,577 0 0 0 Net Working Capital 428,798 26,878 (237,688) 292,283 Total Assets 6,394,829 2,228,843 5,050,329 2,466,166 Bonds Payable - 1.ong-Term Portion 8,144,463 680,000 3,377,576 2,387,217 Total Equity (3,193,305) 1,506,113 1,237,397 (40,679)
Total Retained Earmngs (Deficit) (3,193,305) 1,049,631 (171,606) (40,679)
Note 13 - Electric Power Agreements City of Gainesville The City entered into a wholesale electric service contract with the City of Gainesville, Florida, on January 21,1987, for the purchase of the majority of the City's electric power requirements beginning January 6,1988. The City constructed a 138 x 69 - 12.47Y/7.2kV substation to receive the power, which was placed into operation on that date. The substation is located in such a manner that the City has reasonable access to the transmission lines of both the City of Gainesville and Florida Power Corporation. A portion of the substation is owned by the City of Gainesville. The initial term of the contract was five years, with options for additional annual extensions. The contract was renegotiated on October 2,1992 and extended for an additional fifteen years, beginning December 31,1992. Provisions in ,
the contract allow for price adjustments for increases and decreases in the City of Gainesville's fuel and operating costs. Total payments to the City of Gainesville for 1994 were $2,505,805.
Crystal River Unit #3 Participation Agreement The City is a participant in an agreement with Florida Power Corporation which was entered into on July 31, 1975. Under terms of the agreement, the City acquired an 0.0779%
ownership interest and generation entitlement share in the nuclear steam electric generating unit. Participants are entitled to energy output of the unit based upon their respective generation entitlement share.
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NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FLORIDA (Continued)
Note 13 - Electric Power Agreements (Concluded)
Florida Power Corporation has been appointed by the participants to act as their agent and has sole authority to manage, control, maintain and operate the unit. Operating costs of the unit, in general, are shared in proportion to each generation entitlement share on a monthly basis. Common and external facilities of the generating unit are solely owned by Florida Power Corporation and participants share in the operating and maintenance expenses of such facilities. Nuclear fuel payments and capital acquisition costs are required of participants in advance. Total payments for 1994 were $158,500.
The City's share of plant decommissioning costs to be paid during the years 2015 through 2022 is being accumulated in an account administered by the Florida Municipal Power Agency (FMPA). FMPA has determined the appropriate account balance to be $103,301 at September 30,1994. The cash account is offset by a deferred credit on the balance sheet of
$103,301 at September 30,1994.
St. Lucie No. 2 Power Purchase Agreement The City has negotiated a long-term agreement with Florida Power and Light Corporation through the Florida Municipal Power Agency to purchase .3044 megawatts of generating capacity and a corresponding amount of energy monthly from the St. Lucie No. 2 nuclear generating plant. The plant became operational in 1984. Total payments for 1994 were
$149,182.
The City has signed certain documents with Florida Municipal Power Agency relating to the St. Lucie Project that provide that if the agency defaults on certain bond payments, the City would be required to satisfy payment on their share (.431%) of the bonds. The par amount of the outstanding bonds at September 30,1994 was approximately $300 million.
Note 14 - Defined Benefit Pension Plan All full-time employees of the City of Alachua participate in the Florida State Retirement System (the System), a multiple-employer defined benefit public retirement system. The payroll for employees covered by the System for the year ended September 30,1994 was
$399,404 for special risk employees, $80,438 for senior management and $774,509 for all other employees. The City's total payroll for all employees was $1,360,804.
All full-time employees of the City are eligible to participate in the System. Special risk employees who retire at or after age 55, with ten years of creditable service, and all other employees who retire at or after age 62, with ten years of creditable service, are entitled to a retirement benefit, payable monthly for life, equal to the product of: (1) average monthly compensation in the highest five years of creditable service; (2) creditable service during the 36
_ , - . . _ = _ - .-
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NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FLORIDA (Continued) '
Note 14 - Defined Benefit Pension Plan (Concluded) appropriate period; and (3) the appropriate benefit percentage. Benefits fully vest on ' I reaching ten years of service. Vested employees may retire after ten years of creditable service and receive reduced retirement benefits. The System also provides death and disability benefits. Benefits are established by Florida Statute. j The City is required by Florida Statute to contribute 27.59% of special risk,23.63%' of senior management and 17.66% of all other employee earnings during calendar year 1994 ;
(27.62%, 21.03% and 17.75%, respectively, for calendar year 1993). The contribution l requirement for the year ended September 30,1994 was $265,670; $110,228 for special risk employees, $18,486 for senior management and $136,956 for all other employees.
The " pension benefit obligation" is a standardized disclosure measure of the present value of .
pension benefits, adjusted for the effects of projected salary increases and step-rate benefits, l estimated to be payable in the futme as a result of employee service to date. The measure, 1 which is the actuarial present value of credited projected benefits, is intended to help users assess the System's funding status on a going-concern basis, assess progress made in D accumulating sufficient assets to pay benefits when due, and make comparisons among PERS and employees. The System does not make special measurements of assets and pension >
benefit obligation for individual employers. The pension benefit obligation at June 30,1993 i (the latest actuarial valuation) for the System as a whole was $39.7 billion. The System's net assets available for benefits on that date (at cost) were $29.1 billion.(market was $34.7 billion), leaving an unfunded pension benefit obligation of $10.6 billion ($5.0 billion at market). The City's 1994 contribution represented less than 1% of total contributions required of all participating entities.
Ten-year historical trend information showing the System's progress in accumulating sufficient assets to pay benefits when due is not presently available. However, historical '
trend information commencing with 1986 is present in the System's June 30,1993 annual i financial report.
i Note 15 - Deferred Compensation Plan i The City offers its employees a deferred compensation plan created in accordance with !
Internal Revenue Code Section 457. The plan, available to all City employees, permits them ,
to defer a portion of their salary until future years. The deferred compensation is not !
available to employees until termination, retirement, death, or unforeseeable emergencies. .,
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NOTES TO FINANCIAL STATENENTS CITY OF ALACHUA, FLORIDA (Concluded)
Note 15 - Deferred Compensation Plan (Concluded)
All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the City (without being restricted to the provisions of the benefits under the plan), subject only to the claims of the City's general creditors. Participants' rights under the plan are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant.
The City has no liability for losses under the plan, but does have the duty of due care that would be required of any ordinary prudent investor. The City believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future.
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1 ACCOMPANYING INFORMATION 1
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t COMBINING AND INDIVIDUAL FUND STATEMENTS !
i These statements provide a more detailed view of the " General Purpose Financial Statements" presented ;
in the previous section. Combining statements are presented when there is more than one fund of a given l fund type. An individual fund statement is presented for the General Fund to provide detail budgetary comparisons.
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BALANCE SHEETS GENERAL FUND SEPTEMBER 30,1994 AND 1993 CITY OF ALACHUA, FLORIDA 1994 1993 Assets Cash in Bank, including Certificates of Deposit:
Police Department Trust Fund $ 10,706 $ 8,549 Alachua Meadows Account 105,500 105,500 Other 76,486 45,142 Receivables:
Utility Taxes 12,700 11,369 Accrued Interest 264 264 Other 7,731 14,523 Due From Other Governments 48,758 30,833 Prepaid Expenses 57,866 78,411 Total Assets 320,011 294,591 Uabilities and Fund Balance Liabilities Accounts Payable 113,350 76,916 Accrued Expenses 10,573 4,996 Occupational Licenses Collected in Advance 9,979 9,630 Total Liabilities 133,902 91,542 Fund Balance Reserved For Prepaic Expenses 57,866 78,411 Reserved For Police .'iducation 631 0 Reserved For Specia. Assessment Expenditures 118,369 116,809 ,
Reserved For Fire 'itation Improvements 56,795 55,141 !
Designated For Police Department Operations 10,706 8,549 Undesignated (58,258) (55,861)
Total Fund Balance 186,109 203,049 i Total Liabilities and Fund Balance $ 320,011 $ 294,591 "
i 39 l
STATEMENT OF REVENUES - BUDGET AND ACTUAL GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30,1994, WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTFMBER 30,1993 CITY OF ALACHUA, FLORIDA 1994 1993 Variance Favorable Budget Actual (Unfavorable) Actual Revenues Taxes Property Taxes - Current $ 607,244 5 613,229 $ 5,985 $ 550,729 Property Taxes - Delinquent 15,000 5,977 (9,023) 10,064 Franchise Fees 23,000 30,169 7.169 22,883 Utility Taxes 390,000 421,891 31,891 391,784 local Option Gas Taxes 107,120 100,179 (6,941) 104,187 Total Taxes 1,142,364 1,171,445 29,081 1,079,647 Ilcenses and Permits Occupational Licenses 18,000 17,012 (988) 16,532 Building Permits 34,100 38,598 4,498 26,249 Total Licenses and Permits 52,100 55,610 3,510 42,781 Intergovernmental Federal Grants:
FEMA 0 0 0 8,070 Alachua County School Board (D.A.R.E.) 15,000 15,000 0 0 Alachua County (CCPO) 49,500 44,086 (5,414) 0 Total Federal Grants 64,500 59,086 (5,414) 8,070 State Grants:
Solid Waste 9,792 9.792 0 14.189 State-Shared Reveaue:
Cigarette Tax 14,404 14,327 (77) 14,214 State Revenue Sharing 106,631 111,396 4.765 112,015 Mobile Home Licenses 4,000 4,306 306 3,290 Alcoholic Beverage Tax 6,000 4,785 (1,215) 3,804 Half-Cent Sales Tax 207,203 202,335 (4,868) 179,765 Rebate on Municipal Vehicles 2,500 3,414 914 2.989 Total State-Shared Revenue 340,738 340,563 (175) 316,077 Total Intergovernmental 415,030 409,441 (5,589) 338,336 Charges For Services Police Services 0 70,332 70,332 0 Zoning Fees 1,600 832 (768) 1,056 Sanitation Revenue 16,000 14,245 (1,755) 18,803 Penalty Revenue 3,600 3.475 (125) 3,591 Mosquito Spraying 25,000 24,753 (247) 24,300 Total Charges For Services 46,200 113,637 67.437 47,750 Fines and Forfeitures Court Fines 78.600 97,067 18,467 37,607 Miscellaneous Interest 11,000 10,614 (386) 15,848 Miscellaneous Revenue 17,000 5,555 (11,445) 2,865 Sports Center Revenue 25,000 23,237 (1,763) 24,753 Administrative Fee 0 22 22 22 Total Miscellaneous 53,000 39,428 (13,572) 43,488 Total Revenues 5 1,787,294 5 1,886,628 5 99,334 5 1,589,609 I
40
STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL i GENERAL FUND :
FOR THE YEAR ENDED SEITEMBER 30,1994, WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30,1993 CITY OF ALACHUA, FLORIDA 1994 1993 Variance Favorable Budget Actual (Unfavorable) Actual Expenditures Current:
General Government Legislative:
Personal Services S 42,500 $ 44,344 $ (1,844) $ 42,225 Operations 24,865 18,681 6,184 16,123 Capital Outlay 500 498 2 0
'Iotal legislative 67,865 63,523 4,342 58,348 Executive:
Personal Services 47,513 49,119 (1,606) 51,645 Operations 12,951 11,949 1,002 14,110 Total Executive 60,464 61,068 (604) 65,755 Finance and Administration:
Personal Services 57,666 66,190 (8,524) 57,159 Operations 41,751 35,899 5,852 35,683 ;
Capital Outlay 0 170 (170) 0 l Total Finance and Administration 99,417 102,259 (2,842) 92,842 l 1egal and Code Enforcement: l Personal Services 17,852 12,129 5,723 16,581 Operations 41,585 40,179 1,406 42,533 Total legal and Code Enforcement 59,437 52,308 7.129 59,114 I Comprehensive Planning:
Personal Services 31,181 18,064 13,117 31,127 Operations 32,290 31,941 349 32,523 Total Comprehensive Planning 63,471 50,005 13,466 63,650 Other General Government:
Operations 19,250 23,134 (3,884) 27,301 Capital Outlay 24,000 24,000 0 0 Debt Service 1,500 1,927 (427) 0 Total Other General Government 44,750 49,%1 (4,311) 27,301 Total General Government 395.404 378.224 17,180 367,010 Public Safety I Law Enforcernent:
Personal Services 731,211 849,524 (118,313) 676,552 Operations 121,913 133,470 (11,557) 110,176 Capital Outlay 4,625 2,318 2,307 26,383 Total Law Enforcement 857,749 985,312 (127,563) 813,111 l
41 1
4 STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30,1994, WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30,1993 CITY OF ALACHUA, FLORIDA (Concluded) 1994 1993 Variance Favorable Budget Actual (Unfavorable) Actual Expenditures (Concluded)
Public Safety (Concluded)
Fire Control:
Operations $ 134,427 $ 134,019 $ 408 $ 128,788 Protective 1nspections:
Operations 14.350 14,691 (341) 12,432 Other Public Safety:
Personal Services 9,259 5,061 4,198 6,510 Operations 3,170 3,316 (146) 2.918 Total Other Public Safety 12,429 8,377 4,052 9,428 Total Public Safety 1,018,955 1,142,399 (123,444) 963,759 Physical Environment Personal Services 42,287 33,315 8,972 32,564 Operations 29,222 19,313 9,909 22,937 Capital Outlay 0 6,404 (6.404) 14,500 Total Physical Environment 71,509 59,032 12,477 70,001 Transportation Personal Services 153,906 137,877 16,029 138,501 Operations 128,995 126,489 2,506 118,687 Capital Outlay 0 1,200 (1,200) 4,873 Total Transportation 282,901 265,566 17,335 262,061 Parks and Recreation Personal Services 63,083 65,052 (1,969) 60,617 Operations 61,717 64,454 (2,737) 59,038 Capital Outlay 1,600 7.264 (5,664) 8,441 Total Parks s nd Recreation 126,400 136,770 (10,370) 128,096 Total Expenditures $ 1,895,169 $ 1,981,991 $ (86.822) $ 1,790.927 42
COM;INING CALANCE SHEET PROPRIETARY FUNDS SEITEMBER 30,1994, %TrH COMPARATIVE TOTALS FOR TIIE YEAR ENDED SEITEMBER 30,1993 CITY OF ALACIIUA, FLORIDA Turkey Creek Water / Totals Electric Water Wastewater Wastewater 1994 1993 Assets Current Assets Cash and Cash Equivalents $ 28,488 $ 14,842 $ 43,330 $ 52,373 Receivables (Net of Allowance For Uncollectibles as Parenthetically Indicated):
Accounts ($45,309) 558,416 558,416 553,042 Special Assessments 22,940 22,940 0 Other Receivables 52,511 52,511 9,079 Due From Other Funds 20,529 $ 312,812 333,341 26,089 Inventory, At Cost 183,741 22,391 206,132 183,368 Prepaid Power Costs 38,845 38,845 4,191 Other Prepaid Expenses 22,192 22,192 25, % 3 Unbilled Revenue 161,799 161,799 148,582 Total Current Assets 1,089,461 37,233 $ 0 312,812 1,439,506 1,002,687 Restricted Assets Cash and Cash Equivalents 289,443 256,869 65,500 611,812 760,250 investments 411,2 % 40,000 1,327,137 677,165 2,455,598 2,761,360 Accrued Interest 6,234 6,234 8,857 Total Restricted Assets 700,739 40,000 1,590,240 742,665 3,073,644 3,530,467 Property, Plant and Equipment Utility Plant in Service 6,038,914 3,229,903 4,677,471 1,319,012 15,265,300 14,833,842 (Accumulated Depreciation) (1,714,130) (1,078,293) (1,332,769) (39,490) (4,164,682) (3,715,972)
Construction in Progress 49,956 49,956 0 Total Property, Plant and Equipment -
Cost Less Depreciation 4,324,784 2,151,610 3,344,702 1,329,478 11,150,574 11,117,870 Other Assets Unamortized Bond issue Costs 279,845 0 115,387 81,211 476,443 476,589 Total Assets $ 6,394,829 $ 2,228,843 $ 5,050,329 $ 2,466,166 $ 16.140,167 $ 16,127,613 43
COMBINING BALANCE SHEET PROPRIETARY FUNDS SEI"IT31BER 30,1994, M1TH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTF3fBER 30,1993 CITY OF ALACIIUA, FLORIDA (Concluded)
Turkey Creek Water / Totals Electric Water Wastewater Wastewater 1994 1993 IJabilities and Finut Equity Current IJabilities, Payable Freni Current Assets Cash Oventraft 5 231,420 $ 231,420 $ 293,388 Accounts Payable $ 215.547 215,547 223,822 Other Accrued Expenses 22.591 22.591 23,428 Deferred Credits aral Developer Deposits 83,150 $ 845 83,995 104,255 Due to Other Funds 312,812 $ 20,529 333,348 26,089 Accrued Compensated Absences 26,563 9,510 6,268 42,341 34,763 Total Current IJabilities, Payable From Current Assets 660,663 10,355 237,688 20,529 929,235 705,745 Current IJabilities, Payable From Restricted Assets Accrued Imerest 257,753 17,375 117.248 77,229 459,605 430,159 Bonds Payable - Current Portior 102,710 15,000 80,420 21,870 220,000 189,000 Customer Deposits 119,405 119,405 115,801 Total Current IJabilities, Payable From Restricted Assets 479,868 32.375 197,668 99,099 809,010 734.960 I.mng-Term IJabeities Deferred Credit - CR-3 Decommissioning Costs 103,301 103,301 91,443 Deferred Contributions - Special Assessments 157,917 157,917 133,418 Deferred Contribution - Impact Fee 4I,922 41,922 41,922 Utdaties Revenue Bond of 1979,less Current Portion 680,000 680,000 695,000 Utility Refunding Revenue Bonds of 1986, Less Current Portion 2,037,312 I,711,192 3,748,504 3,910,738 Utihty Revenue Bonds of 1993, less Current Portion 6,107,151 1,666,384 1,107,217 8,880,752 8.891,044 Utility Revenue Bonds of 1994, less Current Portion 1,280,000 1,280,000 1.300,000 Total lmig-Term IJabilities 8.447,603 680,000 3,377,576 2,387.217 14.892.3 % 15.063,565 Total Liabilities 9.588.134 722,730 3,812,932 2,506,845 16,630,641~ 16,504,270 Fund Equity Contributions:
Customers 36,774 924,325 %I,099 %I,099 Capital Project Fund 37,758 37,758 37,758 EDA and IIUD 135,050 304,278 439,328 439,328 Farmersllome Administration 246,900 180,400 427.300 427,300 Total Contributions 0 456,482 1,409,003 0 1,865.485 1,865,485 Retained Earnings:
Reserved For Debt Service and Contingencies 0 43,320 563,376 0 606,696 606,236 Unreserved (3,193,305) 1,006,311 (734,982) (40,679) (2,962.655) (2,848,378)
Total Retained Earnings (Deficit) (3,193.305) 1,049,631 (171,606) (40,679) (2,355,959) (2,242,142)
Total Fund Equity (3,193,305) I,506,i13 1.237,397 140,679) (490.474) (376,657)
TotalIJabilities and Find Equity $ 6.394,829 $ 2.228,843 $ 5.050,329 $ 2,466,166 $ 16.140,167 $ 16.127,613 44
COMBINING STATEMENT OF REVENUES, EXPENSES AND C11ANGES IN RETAINED EARNINGS PROPRIETARY FUNDS FOR THE YEAR ENDED SEITEMBER 30,1994, MTTH COMPARATIVE TOTALS FOR THE YEAR ENDED SEITEMBER 30,1993 CITY OF ALACHUA, FLORIDA Turkey Creek i Water / Tetak ')
E.lectric _ Water Wastewater Wastewater 1994 1993 Operating Revenues IJtihty Billings $ 4,378,756 6 230,880 $ 408.191 $ 191.385 $ 5,209,212 3 4,819.025 Ilookup Charges and Other 34,586 17,731 2,901 47,679 102,897 43,027 Total Operating Revenues 4.413,342 248,611 411.092 239,% 4 5,312,109 4,862,052 Operating Expenses )
Electric Power Expenses
- Nuclear Power Generation and Transmission 92.119 0 0 0 92,119 131,715 I Purchased Pbwer and Other 2,651,214 0 0 0 2,651,214 2,582,639 I Treatment 0 55.420 120,761 52,434 228,615 200,497 Distribution and Collection 216.696 43,074 51,232 19,248 330,250 267,613 Warehousing 38,153 12,482 5,344 0 55,979 49,853 Customer Accounts 83,763 41,222 33,I34 2 158,121 144,509 j General and Administrative 154, % 7 68,715 66,949 9,994 300,625 268,926 f
Depreciation 183,311 99,407 122,294 39,489 444,501 391.832 l
Taxes 104,439 0 0 0 104,439 101,901 (Total Operating Espenses) (3,524,662) (320,320) (399,714) (128,167) (4,365,863) (4,130.485)
Operating Incoene (Isss) 888.680 pI,709) i1,378 117,897 946,246 731,567 Nonoperating Revenues (Expenses)
Operating Grant 0 0 0 0 0 8,070 Interest Income 9.702 1.072 76,050 17,197 104,021 100,445 Interest and Fiscal Charges (530.037) (35,L00) (245,246) (155,074) (965,457) (878,220)
Amortization of Bond issue Costs (11,569) 0 (6,048) (3,267) (20,884) (17,214)
Miscellaneous income 370 0 0 0 370 360 Total t' ., ... ting Revenues (Expenses) (531,534) (34,028) [ (175,244) (141,144) (881,950) G86,559)
Incoene (Loss) Before Operating Transfers 357,146 (105.737) , (163,866) (23,247) 64,2 % (54,992)
Operating Transfers In (Out)
Transfers In 0 0 154,089 0 154,089 69,480 Transfers Out (332.202) 0 0 0 (332,202) (251,436)
Total Operating Transfers In (Ov0 (332,202) 0 ] 154,089 0 (178,113) (181,956)
Net income (Less) Before Extraordinary item 24,944 (105.737) (9,777) (23,247) (113,817) (236,948)
Extraordinary item (Isss) on Advance Refunding of Long-Term Debt 0 0 0 0 0 (1,185,197)
Net acome (less) 24,944 (105,737) (9,777) (23,247) (113,817) (1,422.145)
Retained Earnings (Defick), Beginning of Year (3,218,249) 1,155.368 (161,829) (17,432) (2,242,142) (819,997)
Retained Earnings (Deficit), End of Year 3 (3,193.305) $ l.049,631 $ (471,606) $ (40,679) $ (2,355,959) $ (2,242,142) 45
COMBINING STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED SEITEMBER 30,1994, WITH COMPARATIVE TOTALS FOR YEAR ENDED SEITEMBER 30,1993 CITY OF AIACHUA, FLORIDA Testey Creek Water / Totals Electric Water Wastewater Wastewater 1994 1993 Cash Hows Frtan Operating Activities .
Operating income (Imss) $ 888,680 $ 01,709) $ 11,378 $ 117,897 $ 946,246 $ 731,567 Adjustments to Reconcile Operating income (less) to Net Cash Provided By Operations:
Depreciation of Plant 183,311 99,407 122,294 39,489 444,501 391,832 Amortization (Return) of Decommissioning Costs 3,586 0 0 0 3,586 (984)
Provision For lesses on Accounts Receivable 16,000 0 0 0 16,000 18,450 Change in Current Assets - (Increase) Decrease:
Accounts Receivable and Unbilled Revenue (78,022) 0 0 0 (78,022) (130,594)
Inventory (Net of Material Salvaged From Retirements of $5,479) (5,501) (11,784) 0 0 (17,285) 15,423 Prepaid Pour Costs (34,654) 0 0 0 (34,654) 30,629 Other Prepaid Expenses 3,771 0 0 0 3,771 (12,837)
Change in Liabilities - Increase (Decrease):
Accounts Payable and Other Accrued Expenses (24,958) 2,422 739 0 (21,797) (24,383)
Customer Deposits 3,604 0 0 0 3,604 1,688 Net Cash Provided By Operating Activitics 955,817 18,336 134,411 157,386 1,265,950 1,020,791 Cash Hows Frinn Noncapital Financing Activities Operating Grant 0 0 0 0 0 8,070 Miscellaneous Income 370 0 0 0 370 360 Operating Transfers:
Out to Other Funds (178,113) 0 0 0 (178,113) (201,956)
In From Other Funds 0 0 0 0 0 20,000 Imans (To) From Other Fund 318,372 0 0 (318,372) 0 0 Net Cash (Used In) Noncapital Hnancing Activities 140,629 0 0 (318.372) (177,743) (173,526) l l
l 46 l
l
_ _ . - - _ _ - - - - -_.__*-a__ si-- - - _, - e -w-w-,-g + + + - - Nwr 4-- - -w- --. M -ery=
COMBINING STA'IY. MENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30,1994, MTITI i COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30,1993 CITY OF ALACHUA, FLORIDA (Continued)
Turkey Creek Water / Totals Electric Water Wastewater Wastewater 1994 1993 Cash Hows From Capital and Related Financing Activities Extension and Replacement of Plant, Net of Contributions Received in Aid of Construction $ (248,269) $ (7.489) $ (156,689) $ (68,%7) $ (481,414) $ (304,459)
Plant Removal Costs (1,270) 0 0 0 (1,270) (2,366)
Principal Payments on Bonds (97,935) (14,000) (75,195) (1,870) (189,000) (173,000)
Proceeds From New Bond Issue 0 0 0 0 0 1,059,632 Interest Paid (519,546) (35,450) (281,283) (77,258) (913,537) (814,798)
Bond issue Costs 0 0 0 (20,738) (20,738) (14,230)
Operating Transfers:
Out to Other Funds (154,089) 0 0 0 (154,089) (49,480)
In From Other Funds 0 0 154,089 0 154,089 49,489 Net Cash (Used In) Capital and Related Financing Activities (1,021.109) (56,939) (359,078) (168,833) (1,605,959) (249,221)
Cash Hows Fran Investing Activities !
Investments Purchased (319,853) (40,000) (764,221) (147,165) (1,271,239) (2,418,372)
Investments Matured 307,995 40,000 731,841 497,165 1,577,001 1,521,757 Interest Received 19,533 1,072 78,673 _ 17,197 116,475 114,055 Net Cash Provided By (Used In) Investing Activities 7,675 1,072 46,293 367,197 422.237 (782,560)
Net (Decrease) Increase in Cash, Cash OverdraR and Cash Equivalents 83,012 (37,531) (178,374', 37,378 (95,515) (184,516)
Cash, Cash Overdraft and Cash Equivalents, October 1,1993 234,919 52,373 203,823 28,122 519,237 703.753 Cash, Cash Overdraft and Cash Equivalents, September 30,1994 $ 317,931 $ 14,842 $ 25,449 $ 65,500 $ 423,722 $ 519,237 Reconciliation of Cash, Cash Overdraft and Cash Equivalents (Above) to Combining Balance Sheet Captions on Combining Balance Sheet Cash and Cash Equivalents $ 26,805 $ 24,328 $ (51,133) $ 0$ 0 $- O t Restricted Assets - Cash and Cash Equivalents 768,313 28,045 254,956 28,122 1,079,436 948,176 (Cash Overdraft) (560,199) 0 0 0 (560,199) (244,423) i Total 5 234,919 $ 52,373 $ 203,823 $ 28,122 $ 519,237 $ 703,753 I
- 47
COMBINING STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 300 1994, MTITI COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30,1993 CITY OF ALACHUA, FLORIDA (Concluded)
Turkey Creek Water / Totals Electric Water Wastewater Wastewater 1994 1993 Schedule of Noncash Investing and Financing Transactions Bond Issue and Refunding Par Amount of Bonds Issued $ 0$ 0$ 0$ 0$ 0$ 9,000,000 (Original Issue Discount) 0 0 0 0 0 (96,311)
(Issue Costs) 0 0 0 0 0 (404,605)
(Cash Transferred to Escrow) 0 0 0 0 0 (7.439,452)
Net Premi From New Bond Issue $ 0$ 0$ 0$ 0$ 0$ 1,059,632 Components of loss on Refunding:
Principal Amount of Refunded Bonds $ 0$ 0$ 0$ 0$ 0$ 6,536,328 (Unamortized Discount) 0 0 0 0 0 (78,2%)
Accumulated Appreciation - Capital Appreciation Bonds 0 0 0 0 0 102,316 (Unamortized Bond Issue Costs) 0 0 0 0 0 (315,092)
Accrued Interest at Refunding 0 0 0 0 0 8,999 Net Transferred to Escrow 0 0 0 0 0 (7,439,452)
(Loss) on Refunding $ 0$ 0$ 0$ 0$ 0 $ (1,185,197)
Purchase of Turkey Creek Water and Wastewater System Purchase Price $ 0$ 0$ 0$ 0$ 0$ 1,300,000 (Bonds Issued) 0 0 0 0 0 (1,300,000)
Nd Cmh hid $ 0$ 0$ 0$ 0$ 0$ 0 New Special Assessments Increase in Receivable $ 22,940 $ 0$ 0$ 0$ 22,940 $ 0 (Increase in Deferred Credit) (22,940) 0 0 0 (22,940) 0 Nd S 0$ 0$ 0$ 0$ 0$ 0 l
48
4 4
O SEMIN0LE ELECTRIC COOPERATIVE, INC.
CONSOLIDATED FINANCIAL STATEMENTS December 31,1994 1
I i
Suite 2800 Telephone B13 223 7577 (CD North Ashley Sitaet j 5
P.O. Box 2640 i Tampa, FL 336012640
.?f*iCC II51[CT$lOllSC LLP Report ofIndepen/Jens Certified Public Accountants February 22,1995 To the Board of Trustees Seminole Electric Cooperative, Inc.
In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of revenue and expenses and patronage capital and of cash flows present fairly, in all material respects, the financial position of Seminole Electric Cooperative, Inc. and its subsidiary (the Cooperative) at Decemler 31,1994 and 1993, and the results of their operations and their cash flows for the years then ended in conformity with generally accepted accounting principles. These financial statements are the responsibility of the Cooperative's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with generally accepted auditing standards ,
and the financial audit requirements of the government auditing standards issued by the Comptroller General of the United States. These standards require that we plan ,
and perform the audit to obtain reasonable assurance about whether the financial !
statements are free of material misstatement. An audit includes examining, on a test ;
basis, evidence supporting the amounts and disclosures in the financial statements, l assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above.
w c s.mv kb i Tampa, Florida l i
4 SEMINOLE ELECTRIC PDOPERATIVE, INC, CONSOLIDATED BALANCE SHEETS December 31, 1994 1993 ASSETS Utility plant:
Plant in service $ 842,146,085 $ 815,921,407 Construction work in progress 7,371,516 23.074,979 849,517,601 838,996,386 Less accumulated depreciation and amortization (243,332,961) (218,446,792)
Utility plant, net 606.184,640 620,549,594 Investments:
Investments in associated organizations 16,627,688 16,942,777 Funds held by trustees 17,408.057 17.128,928 Total investments 34,035,745 34,071,7QE Current assets:
Cash and cash equivalents 38,591,395 48,573,462 Receivables, principally for sales of electricity 17,571,700 23,083,899 Inventories, at average cost:
Materials and supplies 17,165,963 15,858,097 Fuel 24,695,032 28,528,250 Prepayments and other 3,821,754 416,205 Total current assets 101,845,844 116.459,913 Deferred charges 77.733,953 35,013.099
$ 819,800,182 $ 806.094,311 The accompanying notes are an integral part of these financial statements.
I
{'
l l
SEMINOLE ELECTRIC COOPERATIVE, INC, CONSOLIDATED BALANCE SHEETS December 31, .I i
1994 1993 i EOUITY AND LIABILITIES :
Equity:
Memberships $ 1,100 $ 1,100 I Patronage capital 57,804,334 56,276,952 Donated capital 31,615 31.615 Total equity 57.837,049 56,309,667 Long-term liabilities:
Long-term debt 629,135,446 605,040,494 !
Obligations under capital leases 28,086,248 29,848,072 :
Other 3,000,898 123,585 j Total long-term liabilities 660,222.592 635,012.151 i Current liabilities:
Current portion of: ?
Long-term debt 12,953,971 8,354,452 Obligations under capital leases 1,761,824 1,308,498 :
Accounts payable 13,859,882 22,999,658 Other accrued liabilities 39.976.489 42,721,580 Total current liabilities 68,552.166 75.384.188 Deferred gain on sale-leaseback i of plant 21.177,542 22.593.311 !
Other deferred credits 12.010,833 16,794,994 Commitments and contingencies '
(Notes 10 and 11) i
$ 819,800,182 $ 806,094.311 i
h i
The accompanying notes are an integral part l' of these financial statements.
i
?
i
o f
0 SEMINOLE ELECTRIC COOPERATIVE. INC.
CONSOLIDATED STATEMENTS OF REVENUE AND EXPENSES !
AND PATRONAGE CAPITAL For the years ended December 31, 1994 1993 Operating revenue $ 481.488.949 $ 497.196.677 Operating expenses:
Operation:
Fuel 166,109,945 166,476,028 Other production expenses 35,444,099 35,525,075 Purchased power 130,068,689 134,772,770 Transmission 20,376,832 23,626,092 l Administrative and general 17,660,784 15,989,465 !
Depreciation and amortization 28,356,489 27,460,892 '
Lease of coal-fired plant 29,183,078 29,010,322 Taxes, primarily property 11.179.951 10.695.171 438.379.867 443.555.815 -
Operating margins before interest charges 43,109,082 53,640,862 Interest expense net of amounts capitalized 41.860.001 47.862.919 ,
Operating margins 1,249,081 5,777,943 Patronage capital credits 86.708 49.445 l Net operating margins 1,335,789 5,827,388 !
Nonoperating income / (expense) : l Interest income 3,318,736 4,053,939 i Other income /(expense), net 1.442.740 ( 865.029)
Margins before cumulative effect of accounting change 6,097,265 9,016,298 l
i Cumulative effect on prior years of :
change in accounting principle: !
Postretirement and postemployment l
benefits other than pensions ( 2.315.808) ---
l Net margins 3,781,457 9,016,298 Patronage capital, beginning of year 56,276,952 50,758,540
! Patronage capital retirements ( 2.254.075) ( 3.497.886) l Patronage capital, end of year S 57.804.334 $ 56.276.952 i
i The accompanying notes are an integral part l
of these financial statements.
SEMINOLE ELECTRIC COOPERATIVE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended December 31, 1994 1993 Cash flows from operating activities:
Net margins $ 3,781,457 $ 9,016.298 Adjustments to reconcile to cash:
Depreciation and amortization 31,242,125 28,352,547 Provision for postretirement benefits 2,702,200 -----
Lease expense / lease payment difference ( 3,210,336) ( 788,388)
Change in assets and liabilities:
Receivables 5,512,199 ( 4,605,974)
Inventories 2,525,352 ( 5,026,524)
Prepayments and other ( 3,405,549) 407,133 Deferred charges ( 1,701,273) ( 2,371,134)
Other long-term liabilities 175,113 ( 74,353) ,
Accounts payable ( 9,139,776) 809,902 Other accrued liabilities ( 4,542,717) 12.446,368 Total adjustments 20,157,338 29.149.577 Net cash provided by operating activities 23.938,795 38,165,875 Cash flows from investing activities:
Utility plant additions (11,632,288) (41,670,816)
Long-term liquidations /(investments) ( 39,068) 93.380 Net cash used in investing activities (11,671.356) (41,577,436)
Cash flows from financing activities:
Payments of patronage capital credits ( 2,254,075) ( 3,497,886)
Payments of long-term debt (10,507,810) ( 5,973,542)
Payments of repricing penalties ( 8,179,123) ( 4,749,331)
Payments of capital lease obligations ( 1,308.498) ( 1,193.419)
Net cash used in financing activities (22,249,506) (15.414.178) l Net decreare in cash and cash equivalents ( 9,982,067) (18,825,739)
, Cash and cash equivalents, beginning of year 48,573,462 C7,399,201 Cash and cash equivalents, end of year $38,591,395 $48,573,462 Supplemental disclosure of, cash flow information:
Interest paid $41,264,387 $37,865,474 Supplemental schedule of noncash financing activities:
Seminole refinanced certain long-term debt on March 31, 1994. As a result, related prepayment penalties were deferred and long-term debt was increased in the amount of $39,202,281.
The accompanying notes are an integral part of these financial statements.
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2 SEMINOLE ELECTRIC COOPERATIVE. INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS l
l NOTE 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. Seminole's rates are established by its Board of Trustees, which is composed of representatives from each member cooperative.
Seminole constructed and operates two coal-fired generating facilities (Seminole Unit No.1 and Unit No. 2) near Palatka, Florida with approximately 625 megawatts of net output per unit. These units are connected to the Florida bulk power supply grid through Seminole's 230 kV transmission lines and associated facilities. Both units commenced commercial operation in 1984.
Seminole holds a 1.6994% undivided ownership interest in the Crystal River Unit No. 3 (CR3) nuclear power plant operated by Florida Power Corporation. Seminole also owns various transmission facilities connecting Seminole to an Independent Power Producer (IPP) as well as individual members to the Florida bulk power grid.
NOTE 2 - SUMMUtY OF SIGNIFICANT ACCOUNTING POLICIES:
Seminole complies with the Uniform System of Accounts as prescribed by the Rural Utilities Service (RUS), formerly the Rural Electrification Administration. The accounting policies and practices applied by Seminole in the determination of rates are also employed for financial reporting purposes.
The consolidated financial statements include the results of operations and financial position of Seminole and Acuera Corp.
(Acuera), a wholly owned subsidiary. All intercompany transactions have been eliminated.
Utility Plant Utility plant owned by Seminole is stated at original cost. Such cost includes applicable supervisory and overhead cost, plus net interest charged during construction. The amounts of interest capitalized during 1994 and 1993 were $876,772 and $2,131,344, respectively. 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. Certain leased transportation equipment is valued at the total net present value of minimum lease payments.
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ODeratino Revenue Seminole has wholesale power contracts with each of its members, +
whereby the members must purchase all electric power and energy which .
the member shall require for its system within the State of Florida from Seminole to the extent that Seminole shall have such power, energy and facilities available. The only exception relates to contracts between several members and the Southeastern Power Administration, which provides less than 2% of the total energy required by all members.
Operating revenue consists primarily of sales of electric power and energy by Seminole and a facilities use charge for Seminole's transmission lines serving a single member cooperative. Member revenues include amounts resulting from a fuel and purchased power adjustment clause which provides for billings to reflect increases or decreases in fuel and fuel related purchased power costs. The adjustment factor is based on costs projected by Seminole for a ,
twelve-month period. Any overrecovery or underrecovery of costs plus '
an interest factor are to be refunded or billed to the members semi-annually. Overrecoveries of $12,314,032 and $9,545,744 at December 31, 1994 and 1993, respectively, are recorded as accrued liabilities until refunded.
Included in operating revenue are approximately $469 million and $479 million of revenue from members for the years ended December 31, 1994 and 1993, respectively, of which approximately $15 million and $19 million are included in receivables at December 31, 1994 and 1993, respectively.
Deoreciation and Amortization Seminole provides for depreciation on owned utility plant using composite rates applied annually on a straight-line basis that will amortize the original cost of depreciable property over its estimated useful life. The rates for 1994 and 1993 were as follows:
1994 1993 Coal-fired production plant 3.10% 3.10%
Transmission plant 2.75% 2.75% :
General plant 7.13% 7.46%
Nuclear production plant 4.51% 4.53%
Depreciation expense amounted to $23,606,778 and $22,743,076 for 1994 and 1993, respectively.
Improvements to the leased coal-fired plant are amortized over the :
remaining life of the base lease term. The related composite l amortization rates were 5.65% and 5.57% for 1994 and 1993, respectively.
Amortization of leased assets under capital leases amounted to
$1,351,793 and $1,205,836 in 1994 and 1993, respectively.
Amortization of Deferred Gain Deferred gain on sale-leaseback of plant is being amortized on a straight-line basis over the base lease term of 25 years commencing in 1985 and is reflected as a reduction of operating expenses.
Deferred Charoes Deferred charges primarily consisted of unamortized debt costs and related prepayment and repricing penalties, and costs associated with a load management incentive fee program. These costs will be recovered primarily through rates over various amortization periods ranging up to twenty-one years.
Deferred charges also included depreciation and interest on certain common transmission lines and production facilities incurred prior to commercial operation of Seminole Unit No. 2. The unamortized amounts at December 31, 1994 and 1993 were approximately $6.9 million and $8.3 million, respectively. Such deferrals are being recovered in rates charged to members over a ten year period through a phase-in plan. Amortization of these deferred charges included in depreciation and amortization expense, amounted to approximately $1.4 million for both years 1994 and 1993.
Deferred Credits At December 31, 1994 and 1993, deferred credits primarily included deferred lease expense which represents the difference between cash payments and expense recognized on a straight-line basis related to the operating lease of certain generating facilities and a reserve for CR3 decommissioning costs.
Cash Ecuivalents Seminole considers all short-term, highly liquid investments with an original maturity of 3 months or less to be cash equivalents.
Reclassifications Certain reclassifications have been made to the 1993 statements to conform to current classifications. There were no changes in net margins as previously reported.
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NOTE 3 - UTILITY PLANT- !
December 31. .
.. 1994 1993 j Owned property: _ . i Coal-fired plant $ 592,162,389 $ 590,355,540 i
' Transmission plant 157,386,796 135,222,011 ,
General plant 19,180,115 18,988,909 !
Nuclear plant, including fuel 18.355.464 17.577.594 I 787,084,764 762,144,054 -!
-Transportation equipment under !
capital leases 39,365,058 39,365,058 t Leasehold improvements of coal-fired plant 15.696.263 14.412.295 ,
842,146,085 815,921,407 Construction work in progress 7.371.516 23.074.979 849.517.601 838.996.386 Accumulated depreciation and amortization (231,283,263) (208,563,122) .
Accumulated amortization of leased assets ( 9,712,575) ( 8,360,782) l Accumulated amortization ,
of leasehold improvements ( 2.337.123) ( 1.522.888) ;
(243.332.961) (218.446.792) i
$ 606.184.640 $ 620.549.594 :
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NOTE 4 - INVESTMENTS:
December 31, 1994 1993 Investments in associated organizations:
National Rural Utilities Cooperative Finance Corporation (CFC):
Membership $ 1,000 $ 1,000 Capital Term Certificates 1,834,027 1,545,168 Subordinated Term Certificates 14,263,780 14,793,643 Patronage Capital Certificates 412,667 404,518 National Bank for Cooperatives (CoBank) 20,854 92,788 Other 95.360 105.660
$ 16,627,688 $ 16,942,777 Funds held by trustees:
Pollution control bond funds $ 15,158,205 $ 15,103,811 Nuclear Decommissioning Trust Fund 2.249.852 2.025.117
$ 17,408.057 $ 17.128,928 Investments in capital and subordinated term certificates and patronage capital certificates are considered to be held-to-maturity due to their nature and are carried at cost determined by specific identification.
It is not practicable to estimate the fair value of CFC capital term certificates due to the nature and maturity of these investments.
Of these investments, $1,401,516 are required as a condition of membership and of loans provided to Seminole by CFC. Of the
$1,834,027 and $1,545,168 carrying amounts at December 31, 1994 and 1993, respectively, $63,307 matures in 2075 and $918,124 matures in 2080. Both of these amounts pay 5% annual interest. Additionally,
$364,283 matures in 2017 and pays 3% annual interest and $55,802 bears no interest and amortizes through 2019. An additional non-interest bearing investment in these certificates maturing in 2005 totaling $432,511 and $143,652 at December 31, 1994 and 1993, respectively, with investments of approximately $144,000 to be made semi-annually through July 2000, relates to an agreement between Seminole, CFC and the National Cooperative Services Corporation (NCSC, an affiliate of CFC) (see Note 11).
Investments in CFC subordinated term certificates are required as a condition of guarantees provided to others by CFC on behalf of Seminole and are generally priced at market rates at the time of issuance. These investments bear interest at various rates with a combined average of approximately 9.54% and 9.45% in 1994 and 1993, respectively. At December 31, 1994 and 1993, the estimated fair values of these investments of approximately $17 million and $19
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million, respectively, are based on the current rates offered by CFC for this type of required investment.
Funds held by trustees are recorded at amortized cost and are considered to be held-to-maturity. At December 31, 1994 and 1993, the estimated fair values of funds held by trustees of approximately
$16 million and $17 million, respectively, is based on quoted market prices for the securities held by the trustees.
NOTE 5 - LONG-TERM LIABILITIES: ,
Lona-Term Debt December 31, 1994 1993 First mortgage notes payable to ,
Federal Financing Bank (FFB), ,
guaranteed by RUS, principal due in '
various installments through 2020, interest at adjustable and fixed rates, currently 4.752% to 10.789% $ 480,061,899 $ 448,960,533 !
First mortgage notes payable to ,
RUS, principal due in various installments through ;
2019, interest at 5% 4,943,731 5,078,019 Pollution control revenue bonds, payable to the Putnam County Development Authority, guaranteed by CFC, principal due in various installments through 2014, interest at adjustable rates, currently 5.55% and 3.75% 149,250,000 151,450,000 First mortgage notes payable to CFC, principal due in various installments through 2019, interest at adjustable rates, currently 6.20% and 9.50% 7.833.787 7.906.394 642,089,417 613,394,946 Less current portion ( 12.953.971) ( 8.354.452) 4
$ 629.135.446 $ 605.040.494 ,
4 The estimated maturities and annual sinking fund requirements of all long-term debt, at current interest rates for the four years subsequent to December 31, 1995, are presented below:
Annual Maturities Year ending and Sinking Fund pr ember 31. __ Recuirements 1996 $ 14,125,691 1997 $ 14,975,838 1998 $ 15,977,086 1999 $ 16,855,036 On January 3, 1995, Seminole refinanced $72.4 million of its long-term debt in accordance with provisions of the related FFB notes.
Refinancing penalties of $7.4 million and fees of $.2 million were incurred. The refinancing penalties were financed by an increase in the outstanding balance of the refinanced debt. These refinancing penalties and fees will be included in deferred charges along with the refinancing and repricing penalties previously incurred and will be amortized over the remaining life of the repriced or refinanced debt. Taking into consideration the ef fects of this refinancing, the annual maturities of all long-term debt for the five years subsequent to December 31, 1994, are presented below:
Annual Maturities Year ending and Sinking Fund December 31. Recuirements 1995 $ 14,175,166 '
1996 $ 15,062,441 1997 $ 15,931,901 1998 $ 16,933,428 1999 $ 17,829,431 Substantially all owned assets and leasehold interests are pledged as collateral for the above menticned debt to the United States of America (RUS and FFB) and CFC.
At December 31,1994 and 1993, the estimated fair values of long-term debt including current portion, are approximately $623 million and
$689 million, respectively. For Seminole's long term debt with interest rates fixed to final maturity, excluding FFB debt refinanced on January 3, 1995, and for that portion that is subject to interest rate adjustment more than six months from year end, fair value is estimated based on the present value of the underlying cashflows.
For FFB debt refinanced on January 3, 1995, the fair value was determined to be the carrying amount of the debt at December 31, 1994 plus refinancing penalties incurred on said refinancing. For that portion of long-term debt that reprices to market rates at intervals c
< l l l of six months or less, the carrying amount has been used as a reasonable estimate of fair value. 1 i
Oblications Under Capital Leases At December 31, 1994, Seminole was obligated under certain capital 1 leases of transportation equipment for which base lease terms expire on various dates through 2005. The following is a schedule of future lease payments under these leases together with the present value of the net minimum lease payments as of December 31, 1994:
Year ending December 31.
1995 $ 4,523,511 1996 4,640,641 1997 4,640,640 1998 4,640,640 i 1999 4,640,640 Later years 23.888.021 l
Total minimum lease payments 46,974,093 Less amount representing interest (17.126.021)
Present value of minimum lease payments 29,848,072 Less current principal portion ( 1.761.821)
$ 28.086.248 These transportation equipment leases provide for renewals and options to purchase at fair market value at various dates or upon expiration.
Payments under these transportation equipment leases totaled
$4,201,372 each year for 1994 and 1993, respectively. These payments were included as a cost of fuel inventory and expensed based on the tons of coal burned throughout the year.
NOTE 6 - NET MARGINS AND EOUITY RESTRICTIONS:
Under provisions of the RUS mortgage, until total equity equals or exceeds forty percent of total assets, the distribution of capital contributed by members is limited generally to twenty-five percent of patronage capital and margins of the next preceding year where, af ter giving effect to such distribution, the total equity will equal ;
or exceed twenty percent of total assets. Distributions may be made, however, in such amounts as may be approved by RUS through waiver of the aforementioned restrictions. Such distributions to members totaled $2,254,075 and $3,497,886 in 1994 and 1993, representing amounts equal to 25% of 1993 and 1992 net margins, respectively.
The RUS mortgage requires Seminole to design its' wholesale rates with ,
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a view towards maintaining, on a calendar year basis, a Times Interest Earned Ratio (as defined) of not less'than 1.0 and a Debt Service Coverage Ratio (as defined) of not less than 1.0. An RUS stipulation arising from the sale of tax benefits requires Seminole to design its wnolesale rates to provide an annual Times Interest Earned Ratio (as defined) of not less than 1.05.
In 1994 and 1993, Seminole achieved a Times Interest Earned Ratio (as defined) of 1.08 and 1.16, respectively, and a Debt Service Coverage Ratio (as defined) of 1.33 and 1.44, respectively.
NOTE 7 - LINES OF CREDIT:
Seminole has available lines of credit totaling $100 million of which none were drawn at December 31, 1994. RUS policy governs use of these funds.
NOTE 8 - INCOME TAXES:
Seminole is a non-exempt cooperative subject to federal and state income taxes and files a consolidated return. As a cooperative, Seminole is entitled to exclude from taxable income those margins assigned to members as patronage credits.
Seminole's ratemaking methods provide that income taxes are recognized as expense and are recovered through rates when currently payable. In addition, income tax credits are accounted for as a reduction of taxes currently payable in the period utilized.
Temporary differences in certain items of income and expense for tax and financial reporting purposes result primarily from depreciation, amortization and sale-leaseback of plant. In 1994 and 1993, income tax losses resulted after the application of net operating loss carryforwards. However, due to the alternative minimum tax (AMT) provisions enacted by the Tax Reform Act of 1986, Seminole was limited in 1994 and 1993 in using net operating loss carryforwards, which resulted in payment of federal AMT liabilities of approximately
$200,000 and $155,000, respectively. AMT was charged to operations in 1994 and 1993. At December 31, 1994, net operating losses and income tax credits of approximately $198 million and $13 million are available to offset future taxable income and tax liabilities, respectively, through 2006 and 2001.
Effective January 1, 1993, Seminole adopted Statement of Financial Accounting Standards (SFAS) No. 109, " Accounting for Income Taxes".
This statement required certain : snges in the way Seminole accounts for income taxes, including a rey Arement to record an asset related to cumulative temporary differences and the establishment of the related income tax liability. Seminole has recorded the following noncurrent deferred tax asset, valuation allowance and liability in 1994 and 1993:
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1994 1993 Noncurrent deferred tax asset $ 187,000,000 $ 194,000,000 Less: valuation allowance ( 13,000,000) ( 13.000,000)
Net noncurrent deferred tax asset 174,000,000 181,000,000 Noncurrent deferred tax liability 174.000.000 181.000.000 Net noncurrent deferred tax asset / liability $ $ '
The noncurrent deferred tax asset reflects deductible temporary differences and loss carryforwards at statutory rates plus investment tax credits and AMT credits. A valuation allowance has been recorded in each year to reduce total deferred tax assets relating to investment tax credits and AMT credits since their realizability does not appear likely. The noncurrent deferred tax liability reflects taxable temporary differences at ctatutory rates. The adoption of this statement had no effect on the results of operations.
NOTE 9 - EMPLOYEE BENEFITS:
Substantially all Seminole employees participate in the National Rural Electric Cooperative Association (NRECA) Retirement and Security Program (the Program), a defined benefit pension plan qualified under Section 401 and tax exempt under Section 501(a) of the Internal Revenue Code. Seminole had accrued for pension expense amounts 1,
equal to the annual contributions to the Program until July 1987, when a moratorium on contributions went into effect due to reaching full funding limitation. The moratorium on employer contributions ended in November 1994. Employer contributions in 1994 amounted to $460,757. In this multi-employer plan, which is available to all member cooperatives of NRECA, the accumulated benefits and plan assets are not determined or allocated separately by individual employer.
Employees retiring on or after age 55 receive the benefit of being allowed to continue, at their expense, health care coverage under Seminole's group plan. In addition, these retirees may use a portion of their accumulated unused sick pay to apply toward these medical insurance premiums. In 1994, Seminole adopted SFAS No. 106
" Employers' Accounting for Postretirement Benefits Other than Pensions". In accordance with the newly adopted standard, Seminole elected to immediately recognize as a charge to income the transition obligation determined as of January 1, 1994 of $2,270,214 including the effect of alternative minimum tax of $44,514 which is reported as the cumulative effect of a change in accounting principle.
Management intends to fund the plan as health care premiums are required to be paid.
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The following sets forth the plan's funded status reconciled with !
amounts reported in Seminole's consolidated balance sheets at l December 31, 1994.
l Accumulated postretirement benefit obligation (APBO) :
Active plan participants not yet fully eligible $ 2,284,485 .
Fully eligible active plan participants 262,007 Retirees and dependents 99,460 Other plan participants 8,348 i Total APBO $ 2,654.300 [
Plan assets at fair value $ 4 Accunnlated postretirement benefit obligation in t excess of plan assets 2,654,300 Less unrecognized transition obligation Accrued postretirement benefit liability $ 2.654.300 Net periodic postretirement benefit cost for 1994 included the ,
following components:
Service cost $ 263,500 f Interest cost on accumulated benefit obligation 165,100 Amortization of unrecognized prior service cost f i
Net periodic postretirement benefit cost $ 428.600 i A 9.0% increase in the cost of covered health care benefits was assumed for 1994. This rate is assumed to decrease incrementally to ;
5.5% after eight years and remain at that level thereafter. The i health care cost trend rate assumption has a significant effect on 1 the amounts reported. For example, a 1% increase in the health care trend rate would increase the accumulated postretirement benefit obligation by $226,427 at year-end 1994 and net periodic cost by
$31,716 for the year. The weighted average discount rate and rate of compensation increase used in determining the accumulated post-retirement benefit obligation were 7.5% and 5.5%, respectively.
In 1994, Seminole also adopted SFAS No. 112 " Employers' Accounting for Postemployment Benefits". Seminole recognized the effect of initially applying this financial standard in the amount of $45,594 including the effects of alternative minimum tax of $894 as a charge to income which is included in the cumulative effect of a change in accounting principle. :
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t NOTE 10 - OPERATING LEASES:
At December 31, 1994, Seminole was obligated under certain leases of generating facilities and transportation equipment for which base lease terms expire on various dates through 2009. The lease of the generating facilities contains a variable interest rate component that could affect future lease payments. Base rental obligations under these leases are payable as follows:
Year ending December 31, 1995 $ 37,980,289 1996 $ 38,740,893 1997 $ 39,120,015 1998 $ 39,527,743 '
1999 $ 40,240,699 Thereafter $ 384,519,798 These leases provide for renewals and options to purchase at fair market value at various dates or upon expiration.
Rental payments for these transportation equipment leases totaled
$4,570,517 for 1994 and $4,583,555 for 1993. These payments were ;
included as a cost of fuel inventory and expensed based on the tons of coal burned throughout the year.
NOTE 31 - COMMITMENTS AND CONTINGENCIES:
Seminole is purchasing most of the coal for the plant under long-term contracts expiring in 1995 and 2010. Contract terms specify minimum annual purchase commitments, subject to force majeure conditions, and prices, which are subject to adjustment for changes in costs. In addition, Seminole has long-term contracts expiring through 2010 for '
transportation of substantially all coal purchases. Contract terms include a minimum cost as determined by a base quantity of tons j shipped and prices, which are subject to adjustment for changes in costs. Total charges under these long-term contracts were approximately $118 million and $117 million in 1994 and 1993, I respectively.
Seminole has established an external Nuclear Decommissioning Trust Fund (NDTF) in compliance with regulations prescribed by the Nuclear Regulatory Commission. The fund balance of approximately $2.3 million represents Seminole's cumulative share of the estimated sinking fund reserve required to decommission CR3. Prospectively, annual cash deposits will be made to the NDTF representing Seminole's annual share of the projected sinking fund requirements. These ,
amounts will be recovered from members through rates annually. Based i upon a study completed in 1986 and updated in 1993, Seminole's total j share of the projected cost of decommissioning is approximately $3.7
e million in 1993 dollars, and decommissioning expenditures are expected to occur over a nine year period ending in the year 2023.
In January 1993, Seminole began purchasing power from an IPP under a long-term agreement. This twenty year agreement requires the purchase of 295 megawatts of capacity by Seminole from a generating station that was constructed and is being operated by the IPP on a site leased from Acuera. During the initial ten years of the agreement, Seminole is required to purchase an additional 145 megawatts of capacity to be supplied by the IPP from an existing coal-fired generating facility. Under the terms of the agreement Seminole will receive this capacity on a first call basis, subject to certain restrictions as to its use. Seminole is obligated to make annual "take or pay" capacity payments of approximately $34 million over the initial ten years and approximately $21 million over the final ten years of the agreement. Total charges under this long-term contract were approximately $43 million and $46 million in 1994 and 1993, respectively.
In 1993, Seminole entered into an agreement with the Jacksonville Electric Authority (JEA) in which JEA provided Seminole with 15 megawatts of firm capacity in 1994. The initial term of the contract is through 2001, with the capacity commitment increasing to 52 megawatts in January 1995. This "take or pay" contract obligates Seminole to make capacity payments totaling approximately $16 million over the initial term. Total charges under this long-term contract were approximately $328 thousand in 1994, which are expected to increase to approximately $1.9 million beginning in 1995.
During 1993, Seminole entered into an agreement with CFC and NCSC whereby, beginning in 1994, Seminole will receive the periodic net proceeds and certain other rights related to the NCSC refinancing of its debt associated with certain transportation equipment leases with a variable rate financing by CFC. In exchange, Seminole is at risk to make net payments to CFC in the event that the variable rate on the CFC internal funding, currently 6.25%, averages more than 10.5% l over the 11 year life of the agreement. The periodic net proceeds :
or payments will be credited or recovered through the fuel '
adjustment clause.
In January 1994, Seminole entered into an agreement with the Orlando Utilities Commission (OUC) in which OUC will provide Seminole with 75 megawatts of firm capacity beginning in January 1996 and continuing through May 31, 2004. Additionally, Seminole has exercised the option with OUC for an additional 50 megawatts of firm capacity for the years 1997 through 2000. Seminole's minimum obligation over the terms of this "take or pay" agreement is projected to be $44.8 million.
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i Seminole is a party to litigation involving various claims arising in the normal course of business. In the opinion of management, the ultimate resolution of these matters will not materially affect Seminole's financial statements.
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