ML20138H193
| ML20138H193 | |
| Person / Time | |
|---|---|
| Site: | Crystal River  |
| Issue date: | 09/30/1996 |
| From: | Montalvo R, Vaden R AFFILIATION NOT ASSIGNED |
| To: | |
| Shared Package | |
| ML20138H133 | List:
|
| References | |
| NUDOCS 9705070106 | |
| Download: ML20138H193 (62) | |
Text
. _ - - - . - - - - . - _ - - - - _ - - - _ - _ _ -
l I
- Utilities Commission, I
City of New Smyrna Beach, Florida I
1 I
I
<< x I "
l
_ / .
I
,. s. '-l l _i J d g _~ 5> h
-u M g h I
- I Comprehensive Annual Financial Report (A Component Unit of the City of New Smyrna Beach, Florida)
I September 30,1996 and 1995
.I !
I :n' na8ME%2 1
.m j
I i
Utilities Commission, City of New Smyrna Beach, Florida (A Component Unit of the City of New Smyrna Beach, Fknida)
Compreltensive Annual FinancialReport For the Fiscal Years Ended September 30,1996 and 1995 UTILITIES COMMISSIONERS Raymond E. Custer, Chairman l l
Peter E. Mallory, Vice Chairman Carolyn F. Bosiger, Secretary-Treasurer James U. Martin, Assistant Secretary-Treasurer William F. Feger, III, CPA, Commissioner DIRECTOR OF UTILITIES Ronald L. Vaden l
CONTROLLER Roberto O. Montalvo, CPA 1
I LEGAL COUNSEL INDEPENDENT AUDITORS Bolt, Spence & Hall, P.A. Brent Millikan & Company, P.A. l
TABLE OF CONTENTS COMPRElIENSIVE ANMUAL FINANCIAL REPORT September 30,1996 cnd 1995 UTI!JTIES COMMISSION, CITY OF NEW SMYRNA BEACII, RORIDA MEW SMYRNA BEAClI, RORIDA Reference DEu introductory Section Title Page ,
1 Organization Chart ,
iii Certificate of Achievement ,
iv Letter of Transmittal .
. . v.x Financial Section Independent Auditors' Report ,
I Financial Statements:
Comperative llalance Sheets , Statement 1 2-3 Statements of Revenue, Expenses, and Changes in Retained Earnings . . Statement 2 4 Statements of Cash I' lows . .
Statement 3 5 Notes to the Financial Statements . .
6-17 Supplemental Detailinformation of the Utility Systems:
Schedule of Revenue, Expenses and Changes in Retained Earnings . Schedule 1 18 Schedule of Revenue, Receipts, Expenses and Disbursements - Budget and Actual- Electric System (Non4AAP Budgetary Basis) . Schedule 2 19 Schedule of Revenue, Receipts, Expenses and Disbursements - Budget and Actual - Water System (Non4AAP Budgetary Basis) Schedule 3 20 Schedule of Revenue, Receipts, Expenses and Ihsbursements - Budget and Actual Pollution Control System (Non-OAAP Budgetary Basis) Schedule 4 2i Schedule of Revenue, Receipts, Expenses and Disbursements Budget and Actual - Water Reuse System (Non-GAAP Budgetary Basis) . Schedule 5 22 Schedule of Operating Expenses - Electric System Schedule 6 23 Schedule ofOperating Expenses Water System . . . Schedule 7 24 Schedule of Operating Expenses Pollution Control System . , Schedule 8 25 Schedule of Operating Expenses - Water Reuse System Schedule 9 26 Schedule ofInterest Eamings ,
Schedule 10 27 Schedule of Debt Servi:e Requirements to Maturity . Schedule 11 28-31 Statistical Section l Schedule of Expenses by Function - Last Ten Fiscal Years , Table 1 32-33 Schedule of Revenues by Source Last Ten Fiscal Years Table 11 3435 Demographic Statistics Table Ill 36 Property Value, Construction, and Bank Deposits - Last Ten Fiscal Years . Table IV 37 Schedule ofinsurance in Force . . Table V 38 Ten Largest Electric Customers Table VI 39 Ten Largest Water Customers . Table VII 40 Schedule of Revenue Certificate Coversge . Table VIII 41 :
llistorical Peak Demand and Electric Sptem Net Energy Requirements, Water Demand, and Sewage Flows . l TableIX 42 l Utility Rate Schedule - Electric Service . Table X 43 Utility Rate Schedule - Water Service . Table XI 44 l Utility Rate Schedule - Pollution Control and Water Reuse Service Table XII 45 4 l
Supplemental Audit Reports Independent Auditors' Report on Compliance . . 46 Independent Auditors' Report on Internal Control Structure 47-48 Management Comments . 49-51 ii
l l
l l
1 ORGANIZA TION CHART l
l l
l l
l l
l
ORGANIZATION CllART IJITLITIES COMMISSION, CITY OF NEW SMYRNA BEACll, FLORIDA NEW SMYRNA HEACll, FLORIDA Utilities Commissioners l
Professional ........... Director ........... Commission Consultants ofUtilities Attorney Water System Personnel / ,
Engineering Finance Electric Pollution Control Operations / Public Relations l Operations Water Reuse Generation Risk Management Water Environmental Accounting Transmission / Production / System Engineering Distribution Treatment Operations Operations Pollution Electrical Customer fleet Control Generation Engineering Service Maintenance Treatment Operations Management Water Information Substation & Reuse Systems / Relay Maintenanc< Treatment Meter Operatiom amma Water Materials Distribution Management Field Operations Sewer Collection Field Operations iii
1 i l l l l
I l
l l
l CERTIFICATE OFACHIEVEMENT l
For the year ended September 30,1995 l
l The Government Finance Officers Association of the UnitedStates and Canada (GFOA) awarded a Certificate of Achievementfor Excellencein MnancialReponing to the Utilities Commission, City of New Smyrna Beach, Florida, for its Component Unit Financial :
Reportfc>r thefiscalyear endedSeptember 30,1995.
In order to be awardeda Certificate ofAchievement, a governmental unit must publish an easily readable and efficiently organi:ed comprehensive annualfinancial report, whose contents confonn to program standards. Such reports must satish both generally accepted accounting principles and applicable legal requirements. l A Certificate ofAchievement is validfor aperiod of oneyear only.
Management believes that this report continues to conform to Cert:Jicate ofAchievement Program standards.
)
l l
4 1
I
CERTIFICATE OP ACilIEVEMENT For the Yezr Ended September 30,1995 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACII, FLORIDA NEW SMYRNA BEACII, FLORIDA Certi:!icate of Acaievement for Exce. ence In Financia Reporting Presented to Utilities Commission, City of New Smyrna Beaca, F oric a For its Comprehensive Annual Financial Report for the Fiscal Year Ended i
September 30,1995 l A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting.
Umg 1 _*
O&"% Preside
?
sur.
Executive Director i IV l
I l
l l
l I
1 i
LETTER OF TRANSMITTAL }
4 i
I l
1 1
1 l
l l
UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA j
ELECTRIC, WATER, POLLUTION CONTROL I%st Office Box 100 200 Canal St.
New Smyrna Beach, Florida 32170 0100 '
(904) 427 1361 $
l l
November 22,1996 To the Chairman and Members of the Utilities Commission City of New Smyrna Beach, Florida The Comprehensive Annual Financial Report of the Utilities Commission, City of New Smyma Beach, Florida, for the fiscal years ended September 30,19% and 1995,is hereby submitted. Responsibility for both the accuracy of the presented data )
and the completeness and faimess of the presentation, including all disclosures, rests with the Utilities Commission To the best of our knowledge and belief, the enckml data are accurate in all material aspects and are reponed in a manner designed to present fairly the financial position and results of operations of the Utilities Commission. All disclosures necessary to enable the reader to gain the maximum understanding of the Utilities Commission's financial affairs have been included.
This financial report is presented in four sections: introductory, financial, statistical, and compliance (Auditor General of the State ofFlonda). The introductoiy section includes this transmittal letter, the Utilities Commission's organization chart, a list of principal oflicials, the table of contents and a reproduction of the Cenificate of Achievement for Excellence in Financial Reponing for 1995. The fmancial section includes the basic financial statements and the independent auditors' report on the financial statements. Le statistical section includes selected financial and demographic information, generally presented on a multi-year basis, and selected ten-year historical financial infonnation.
The Utibtics Commission is required to be audited in accordance with Chapter 10-500, Rules of the Auditor General of the State of Fhirida. hifonnation relatal to this audit, findmgs and recomrnendations, and auditors' reports on the intemal contml structure and compliance with applicable laws and regulations, are included in the compliance section of this repon.
REPORTING ENTITY AND SERVICES PROVIDED The Utilities Commission, City of New Smyrna Beach, Florida, provides a full range of electric, water, pollution control and water reuse services to its customers both inside and outside the city limits. These activities are fully accounted for in this financial report.
The funds and entities related to the operation of the Utilities Commission which are included in these fmancial statements are a component unit of the City of New Smyrna Beach, Florida, and an integral part of the City's reporting entity. The Comprehensive Armual Financial Report of the Utilities Commission is issued separately to provide a comprehensive financial repoiting summary and presentation to the Utilities Commission and its revenue certificate holders Audited financial statements of th: Commission's oversight unit (City of New Smyrna Beach, Florida), are available upon request from the City of New Smyrna Beach,210 Sams Avenue, New Smyrna Beach, Florida,32168.
ECONOMIC CONDITION AND OUTLOOK Re economic condition and outlook of the Utilities Commission have continually improved during the past several years due in large part to the controlled development of residential and commercial propeities which in turn has increased the j Comnussion's quahty customer base. In addition, substantial increases in the local tourism, light marmfacturing, and service l related business industries have had a positive efTect on the area's employment statistics.
I I
V
To the Chairman and Members i of the Utilities Commission City of New Smyrna 13each, Florida November 22,1996 Page 2 MAJOR INITIATIVES ne Commission has established a Capital Improvements Plan (Plan) through 2001. The capital expenditures of this Plan are schululed to be funded through a combination of connection fees, Renewal and Replacement Fund proceeds, a ponion of the proceeds of revenue certificates issued in August,1992, and other funding. These capital improvement plans are in addition to the annual capital requirements for routine extensions of existing utility facihties to serve new customers.
Significant system improvements contemplated in the Plan consist of the following:
- Voltage conversion from 4 kV to 23 kV of the Commission's 4 kV electric system in the mainland downtown area,
- Western area expansion of the water system plant in the Interstate 95-State Road 44 area,
- Constmetion of a western 6 MOD pollution control facility;
- Expansion ofihree mains and lift stations to link with the westem pollution control facility;
- Development and construction of additions to the water reuse system which consists of high senice pumping facilities, extension of the transmission system to connect to the western pollution control facility, and transmission lines to provide irrigation senice to prospective customers, and Commission forecasts fbr the electric, water, pollution control, and water reuse systems indicate that the existing major facilities are adequate to accommodate the expected growth during the five year period of the Plan.
FINANCIALINFORMATION Management of the Corrunission is responsible for establishing and maintaining an internal control structure designed to ;
ensure that the assets of the Commission are protected from loss, theft or misuse and to ensure that adequate accounting data !
is compiled to allow thr the preparation of financial statements in conformity with generally accepted accounting principles.
The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met.
The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived, and (2) the valuation of costs and benefits requires estimates and judgements by management.
Budgeting Controls nc Utilities Commission maintains an integrated system of budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the approved annual budget. The operating activities of the electric, water, pollution control and water reuse systems are included in the annual budget. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established by function and activity within each individual operating system. The Commission also maintains a separate encumbrance accounting system as one l technique of accomplishing budgetary control. This system is used exclusively to maintain budgetary control and is not l utilized for purposes of presenting financial statements prepared in accordance with generally accepted accounting I principles.
As is demonstrated by the financial statements and schedules in the financial section of this report, the Utilities Commission continues to meet its responsibility fbr sound financial management.
i vi l l
1
l To the Chairman and Members of the Utilities Commission '
City:4 New Smyma Beach, Florida Navember 22,1996 Page 3 Utdity Operations 1
in compliance with Resolution No.16-75, the electric, water and pollution control systems ce accounted for as a single enterprise fund. As of September 30,1996, the Utilities Commission served 20,139 electric customers,16,275 water customers,14,017 pollution control customers, and 165 reclaimed water customers. Service totals for the last five years are summarized below:
Pollution Reclaimed Fiscal Electric Water Control Water I
Yggt Accounts Accounts Accounts Accounts 1992 . . . 19,264 10,100 7,875 -
1993 .. . 19,596 10,378 8,051 -
1994 . , 19,907 10,618 8,188 20 j 1995 (*) . , . 20,055 16,148 13,762 105 ;
1996 . . 20,139 16,275 14,017 165 l
(*) The increase in customers experienced in 1995 was the result of a change in the method of billing water and I pollution control services for multi-family customers, which were previously billed as a single utility customer. !
The currmt year's operating revenue fmm the combined utilities systems totaled $33.76 million, an increase of 1.9% over
! last year's $33.14 million. 'lhis iacrease was the combined result of overall, but steady, increases in customer consumption during the fiscal year. The amount of revenue from various sources and the increases over last year are shown in the following tabulation:
I 1996 Increase ;
Amount Percent Over 1995 )
Source of Operatine Revenue (000's) ofTotal (000's)
Electric system . . . . $ 25,873 76.63 % 261 Water system , , . 4,146 12.28 % 174 '
Pollution control system , 3,332 9.87 % 164 Water reuse system ,
412 1.22 % 29 Totals $ , 232fi3. 100 00% 6M
'lhe cturent year's operating expenses from the combined utilities system totaled $29.3 million, a decrease of 1.5% below last year's amount of $29.8 million. This decrease is the combined result of new expense control measures implemented during the fiscal year. Increases and (decn:ases) in the levels of expenses for the individual systems over the preceding year are shown in the following tabulation:
I vii
To the Chiirman and Members of the Utilities Commission City of New Smyrna Beach, Florida November 22,1996 Page 4 Over 1996 (Under)
Amount Percent 1995 Oneratine Exnense by Function (000's) ofTotal (000's)
Electric system $ 22,744 77.58 % (442)
Water system . .. 3,412 11.64 % 29 Pollution control system . 3,001 10.24 % (63)
Water reuse system . 159 0.54 % 27 Totals . . . S , 29,316 100 00% J4M)
DebtAdministratwn The revenue certificate debt coverage ratio is a useful indicator of the Utilities Commission's debt position. The revenue ccitificate coverage has continued to remain strong over the past three years even in years of debt issuance as is summarized in the following in the following three year tabulation:
_.[2.95 1995 1994 Operating revenues .. .. . $ 33,763,090 33,135,452 31,448,283 Interest and other income . 1,076,766 1,117,899 773,740 Capacity and other fees .. 1,383,945 798,090 727,054 Assessment collections , , 1.331 3.106 (301)
Revenues per certificate resolution 36,225,132 35,054,547 32,948,776 Cost of Operation and Maintenance, net of depreciation and required payments to City 23.853.373 24.481.770 23.310.206 Net revenues per certificate resolution 12.371.759 10.572.777 9.638.570 Annual debt senice requirement 5.542.574 5.521.252 5.518.144 Coverage ratio 2 23 Times 1.91 Times 1.75 Times As of September 30,1996, the Utilities Commission had outstanding $63.31 million of revenue certificates payable. All of these obligations are secured by a first lien on and a pledge of the net revenues of the system.
On August 15,19% the Commission issued $26,210,000 in Utilities System Refunding Revenue Certificates, Series 1996, to advance refund $18,690,000 of outstanding 1978 Series Certificates and $6,500,000 of outstanding 1987 Series Certificates. The net proceeds of the transaction were tued to purchase U.S. govemment securities sufficient to redeem all principal, interest, and call redemption premiums on the 1978 Series and 1987 Series Certificates upon their October 1, 199 , call date and to pay a transferred proceeds penalty associated with the restructuring of the escrow fund presiously established with the initial issuance of the 1978 Series Certificates. As a result of the advance refunding, the Commission reduced its aggregate debt service payments by almost $4.2 million over the next 15 years and obtained an economic gain (ddrerence between the present values of the old and new debt senice payments, adjusted for old and new sinking funds on hand) of $2.1 million (as is described more fully in Note 6 to the financial statements).
viii
To the Chainnan and Members of the Utilities Commission City of New Smyrna Beach, Florida November 22,1996 Page 5 The Commission's outstanding revenue cenificates ratings from Moody's, Standard & Poor's, and Fitch's as follows:
Moody's Standard & Poor's LLgh's Utilities System Revenue Certificates, Series 1992 Ana AAA (FGIC Insured) -
Utilities System Refunding Revenue Certificates, Series 1993 Ana AAA (FGIC Insured) - I Utilities System Refunding Revenue Certificates, Senes 1996 -
AAA (AMBAC Insured) AAA The debt service requirements on these obligations are detailed in the notes to the financial statements.
Cash Management Cash temporarily idle during the year was invested through the use of a competitive bid procedure in shon-tenn time deposits and medium short-tenn investments. Shorter investment periods were utilized by the Utilities Commission due to the rapid changes and uncedainties ofinterest rates experienced during the fiscal year. The amount ofinterest camed during the year was $996,021, of which $171,376 was credited to reduce capitalized interest expense for the year.
The Conunission's cash and investments on hand at September 30,1996 and 1995, totaled $18.6 million and $17.6 million, respectively, The individual components are as follows:
1996 1995 Current assets:
Operating cash and cash equivalents . . $ 1.667.600 1.250.833 Restricted assets:
Debt senice funds . 7,939,483 8,642,831 Renewal and replacement funds . . . 3,731,600 3,426,167 Construction funds . . . . 583,125 1,967,953 Customer deposits . , . 1,023,920 1,008,581 CR-3 decommissioning fund . . 1,245,542 898,370 Mandate pollution control plant fund .. 863,221 0 Rate stabilization fund 1.532.965 420.949 l
_16.919.856 16.364.851 l l
Total cash and investments $ l
. . I8.587.416 17.615.68.3 The Conunission's investment policy is to minimize credit and market risks while maintaining a competitive yield on its portfolio. Accordingly, deposits were either insured by federal depository insurance or collateralized in accordance with the Florida Security for Public Deposits Act (the "Act"). All collateral on deposits was held either by the Commission, or I by the State of Florida in accordance with the applicable provisions of the Act. All of the Commission's investments held at year-end are classified in the category oflowest credit risk (backed exclusively by the full faith and credit of the U. S.
govemment) as defined by the Governmental Accounting Standards Board.
ix
l l
To the Ch irman and Members l of the Utilities Commission I city of New Smyrna Beach, Florida November 22,1996 {
Pagc6 1
0111ER INFORMATION IndependentAudit Resolution Number 28-78 and other local and state statutes require an annual audit of the books of account financial records and transactions of all administrative departments of the Utilities Commission by an independent certified public accountant selected by the Utilities Commission. The accounting firm of Brent Millikan & Company, P.A., Certified Public Acxxiuntants, was selected by the Commission to satisfy this requirement. Their independent auditors' report on the fimancial statements and schedules of the Commission has been included in the financial section this report.
1 Awards - Certificate ofAchievement
'Ihe Govemment Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Utilities Commission, City of New Smyrna Beach, Florida, for its component unit financial report for the fiscal year ended September 30,1995. We are also quite proud of the fact that we have been awarded with this Certificate fbr the eighteenth consecutive year.
In order to be awarded a Certificate of Achievement, the Commission must publish an easily readable and efliciently organized component unit annual financial report, whose contents confonn to program standards. Such reports must satisfy both generally accepted accounting principles and applicable leFal requirements.
A Certificate ofAchievement is valid for a period of one ycar only. We believe our cun ent report cor,tinues to conform to Certificate of Achievement Program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate.
Acknowledgments The preparation of this report on a timely basis could not have been accomplished without the efiicient and dedicated senices of the entire staffof the Finance Department. Each member of the department has our sincere appreciation for the contributions made in the preparation of this report. i i
We would also like to thank the individual members of the Utilities Commission fbr their interest, support, and leadership in planning and conducting the financial operations of the Udlities Commission in a most responsible and progressive manner.
Respectfully submitted, b c b /o wb l Ronald L. Vaden Roberto O. Montalvo, 'PA l Director of Utilities Controller l l
I l
1 X
l
i .
I l
i 1 l I
1 i
- i. l 1 )
i- ;
4 i
d j 1 1
2- ,
1 -
i FINANCIAL SECTION 1
,I i This section is composed of thefollowing:
l l-huleperufent Auditors' Report 4
j.
FinancialStatements
.i -
l SupplementalFimmcialInformation i
I I
t i
4 i
i 1
4 , 3 a: "
- i INDEPENDENTA UDITORS' REPORT 1
4 F
i h
}
)
k 7
. BRENT MILLIKAN & COMPANY, P.A. .
CERTIFIED PUBLIC ACCOUNTANTS '
INDEPENDENT AUDITORS' REPORT i To the lionorable Chainnan and Commissioners i j Utilities Commission,
- City ofNew Smyrna Beach, Florida New Smyma Beach, Florida We have audited the accompanying balance sheets of Utilities Commission, City of New Smyrna Beach, Florida, as of September 30,19% and 1995, and the related statements of revenues, expenses and changes in retained earnings, and cash ,
, flows for the years then ended. These financial statements are the responsibility of Utilities Commission, City of New l l Smyrna Beach, Florida's management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards and Gowrnment Auditing Standards, !
i issued by the Comptmiler General of the Unital States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supportmg 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 presenv> ion. We believe that our audits provide a reasonable basis for our opinion.
, In our opinion, tr. financial statements referred to above present fairly, in all material respects, the financial position of Utilities Commission, City of New Smyrna Beach, Florida, as of September 30,1996 and 1995, and the results ofits operations and its cash flows for the years then ended in confonnity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated November 22,1996, on our i consideration of Utilities Commission, City of New Smyma Beach, Florida's internal control stmeture and a repon dated November 22,1996 on its compliance with laws and regulations.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules Ested in the table of contents are presented for purposes of additional arzalysis and are not a required 1
- part of the basic financial ste.tements of Utilities Commission, City of New Sm)Tna Beach, Florida. Such information, except l for the statistical data, has been subjected to the auditing procedures applied in the audit of the basic financial statements and,in our opinion,is fairly stated in all material respects in relation to the basic financial statements taken as a whole. The 4
statistical data has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on it.
In cannecticn with our audit, nothing came to our attention that caused us to believe that Utilities Commission, City of New Smyma Beach, Florida, was not in compliance with any of the terms, covenants, provisions, or conditions of section 16 of Resolution No. 28-78, dated June 30,1"78, as amended. However, it should be noted that our audit was not directed primarily toward obtaining knowledge of such noncompliance.
New Smyrna Beach, Florida November 22,1996 l
1 j 205 MAGNOLIA ST.
- NEW SMYRNA BEACl1, FL 32168 = (904) 427-1333 + FAX (904) 427-5823 MLMBER: Amerwan Institute of Cert fled Pubhc Accountants and AKTA Private Companie. Practice hectiovi
I l
l 1
l FINANCIAL STA TEMENTS
1 1
COMPARATIVE CALANCE SHEETS September 30,1996 and 1995 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FLORIDA ASSETS 1996 1995 ;
Utility Plant:
Efe c tri c plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 56,848,537 55,677,614 Waterplant......................................................................... 28,292,647 27,198,249 Pollution control plant ... ......................................................... 23,521,591 23,337,222 Water reuse plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,517,993 3,816,822 General plan t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 251 418 9,104 315 722,%32,,186~ ~r19 134,,222~
Less: accumulated depreciatiore and amortization ............................. [.$4,074,957 (40,877,320
~ ~ 78 357,229) 78 256,902)
Construction work in progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . . . . . . . . . . . . . . 4,723,089 4,246,511 Utility plant, net of accumulated depreciation and amortization ...... 83,080,318 82,503,413 Restricted Assets: '
Cash and cash equivale nts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,542,156 8,993,651 Investme nts, a t cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.377,700 7,371,200 Total restricted asse ts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16,919,856
...... 16,364,851 Current Assets:
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,667,600 1,250,833 Accrued inte rest receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .139,611 ..... 124,395 Accounts recei vable (ne t) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,661,242 ..... 1,558,037 Unbilled accounts receivable ............ ............... ............ 1,873,170 2,778,747 i n ve n tori es . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . ..... . . . . . . .1,622,995
. . . . . . . . . . . . . .1,627,476 Prepaid e xpenses and other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,084 139,104 Assessments re cei ve ble . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,689 ..... 76,442 Total curre nt assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,190,391 .... 7,555,034 Deferred Charges and Other As' sets:
Unamortized debt expe nse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 703,865 642,657 Defe rred amount on ad vance re funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,491,663 0 Total de ferred charges and othe r asse ts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,195,528 642,657 To tal asse ts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . m . . . $_109 386,093 107,065,9_55__
The accompanying notes are an integral part of the financial statements.
2
1 1
r.
I a
l i
l I
i l
4 s
1
?
Y l
p F
=
9
^
. t, I
i 6
)
i a
i i
f I
i i
I s
I i
(
O t
h i
3 e
-t I
i f
a i
i h
r f
5 h
4
~
+
I r
b e
I l
r
.-, - . --, , - - , , - . ,, , - - - , ,- - - ----, , . --~, - - - - , _,, , w. -- , .~ . , . ~, , , , - . , , ..ye -, ..-7--,. . , , . . -, --n, e
1 Statement 1 LIABILITIES AND UTILITYEQUITY 1
1996 1995 1
Utility Equity: 1 Contributed capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 32,804,356 31,204,791 Retained Earnings:
Reserved for restricted debt service funds................................... 4,868,056 5,011,924 ,
Unre se rved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2,323,932 . . . . . . . . . . . . . . . . 447,199
.. i 7,T9T,988- 5,459,123' '
Total utility equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,996,344 36,663,914 Long-Term Debt:
Revenue certificates payable (net of current portion) ......................... 61,630,000 62,290,000 Less: unamortized debt discount. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(1,190,294) ...... (1,434,192)
Total long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,439,706 60,855,808 i
Restricted Fund Liabilities: '
Revenue certificates payable (current Accrued interest payable . . . ........................................ . . . . .. . . . portion) . . . . . . . . . . . 1,680,000 1,720,000
. . . . . . . . . . . 1,910,907 1,391,427 ...........
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...... . . . . . . . . .. . . . . 163,359
. 63,127 Customers ' deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,023,920 1,008,581 Deferred allowance for decommissioning costs ... ... . .................... 1,245,542 1,048,370 Total restricted fund liabilities ............. ... .................... .... 5,504,248 5,750,985 Current Liabilities:
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,588,731 1,481,643 Accrued liabili ties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .745,169 ......... 893,333 Due to other gove rnme nts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . 674,390 644,133 t
Total current liabili ties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,008,290 ..... 3,019,109 l Other Noncurrent Liabilities:
Deferred compensated absences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 381,781 653,249 i Deferred credits - other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55,724 .... 122,890 l 1
Total other noncurrent liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437,505 776,139 Total liabili ti es . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69,389,749 ........ 70,402,041 i Total liabilities and u tility equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 109.386,0_93_ 107.065,955 3
STATEMENTS OF REVENUE, EXPENSES AND Statement 2 CHANGES IN RETAINED EARhTNGS For the Fiscal Years Ended September 30,1996 and 1995 !
UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FI.ORIDA NEW SMYRNA BEACH, FLORIDA l
i 1996 1995 l Operating Revenue:
Sales.................................................................................. $ 33,466,952 32,844,658 ;
Othe r reve nue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. .% . ,138 290,794 Total operating revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,763,090 33,135,452 Operating Expenses:
Prod uction e x penses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,004,020 15,736,225 !
Transmission, distribution, and sewage collection and treatment ........... 3,053,810 3,433,468 i Customer accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 819,986 808,391 Administra tive and general . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,778,385 4,300,729 !
Required payments to the City of New Smyrna Beach ....................... 2,076,104 1,945,294 i Depreciation and decommissioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,583,478 3,540,923 i.
Total operating expe nses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,315,783 29,765,030 Operati ng income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,447,307 3,370,422 Nonoperating Revenue (Expense):
I nterest earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 824,645 762,206 O the r i nco me . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .252,121 ..... 355,693 Interest and debt expe nse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,731,690) (3,791,166)
O the r e x pe nses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (20,647) (45,577) ,
Loss on disposal of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (38,871) (32,988) '
Total nonoperating (expense). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,714,442) (2,751,832)
Netincome.................................................................. 1,732,865 618,590 Retained earnings , beginning of year . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _5J59,123 4,840,533 Re tained earnings, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,191,988 5.459.123 L
F The accompanying notes are an integral part of the financial statements.
4
STATEMENTS OF CASH FLOWS Statesnent 3 For the Fiscal Years Ended September 30,1996 and 1995 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FLORIDA 1996 1995 Cash Flows From Operating Activities:
Opera ting income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,447,307 3,370,422 Adjustments to reconcile operating income to net cash provided by operating activities:
Depreciation, amortization and decommissioning .................. ... 3,847,681 3,628,669 Provision for losses on receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89,769 66,000 Nonope rating revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231,474 310,118 Decrease (increase) in operating assets:
A ccounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (192,974) (542,451)
Unbilled accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 905,577 (715,173)
Assessments and interest receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14,463) 2,212 I nve ntories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,481 (735,908)
Pre paid expe nses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,980) 28,718 Increase (decrease) in operating liabilities:
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207,320 (3%,477)
Due to other governments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....... . 30,257 33,751 Customer deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,339 38,016 Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (148,164) 108,112 Deferred liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (338,634) 133,821 Net cash provided by operating activities ................................. 9,073,990 5,419,830 Cash Flows From Capital and Related Financing Activities:
Debt reduction outlays . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,720,000) (1,630,000)
Amount paid in advance refunding. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (880,7%) 0 Contributed capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,483,084 1,003,745 Proceeds from sale of property and equipment ................................. 10,209 4,%5 Acquisition and construction of capital assets ................................... (3,959,749) (2,159,435)
I nte re st paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,030,987) (3,921,%5)
Net cash provided by (used in) capital and related financing a:tivities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9,098,239) (6,703,590)
Cash Flows From investing Activities:
Purchase of inve stme nt securi ties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,500,000) (5,950,000)
Proceeds from sale and maturities of investment securities ................... 7,493,500 3,541,300 I ntere st re ce ived . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 996,021 1,011,456 Net cash provided by (used in) investing activities ....... .............. 4,989,521 (1,397,244j Net increase (decrease) in cash and cash equivalents ................... 4,%5,272 (2,681,004)
Cash and cash equivalents, beginning of year ...... ..... ............. ..... .... 10,244,484 12,925,488 Cash and cash equivalents, e nd of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,209.756 _ 10,244.484 Noncash Capital and Related Financing Activities:
Acquisition of capital assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $__(116 481) (5,9512 92)
Contributed capi tal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 116, 4_81 5 951 7_92 The accompanying notes are an integral part of the financial statements.
5
\
i
l NOTES TO TIIE FINANCIAL STATEMENTS i
.m -
---e.a. m esp dr e.d@l$a,r a ,m e.d.64& ama
't
+
5 e
i I
f i
.l P
k 6
i I
a
" +
6 i
i I
t 6
I f
?
i 5
)
f P
f I
t i
i e
5 i
P 6
+
. i d
I '
,f I
l
- a. g
't l f f, .
'.l I P
- 1. :
t
(
5 .
U ,
d i
- 11. - !
?
i i
i, I'
e 4 I h
a f.
6, -
J i
'l s - y,y,,,..,,,,m, y. ,.,. , . . , , n,ry.,_ y., ,--p.y,, , .,e
)
NOTES TO THE FINANCIAL STATEMENTS September 30,1996 and 1995
, UTILITILS COMMISSION, CITY OF NEW SMYRNA BEACII, FLORIDA NEW SMYRNA BEACII, FLORIDA I l
l l Note Is General Summary The accounting policies of the Utilities Commission, City of New Smyma Beach, Florida, (the " Utilities i of Commission") confonn to the generally accepted accounting principles as promulgated by the American Institute Significant of Certified Public Accountants, the Financial Accounting Standards Board, the Govemmental Accounting Accounting Standards Board, and the Federal Energy Regulatory Commission. !
Polices <
- Reporting Entity l %e Utilities Commission, was created in 1%7 through the passage of Chapter 67-1754, Laws of Florida, Special !
Acts of 1%7 (llouse Bill 1669) which amended the Charter of the City of New Sm>Tna Beach, Florida, to create ;
the Utilities Commission. In a referendum held October 2,1984, City voters approved amendments to the City
- Chader establishing criteria requiring the funds and entities related to the operation of the Utilities Commission be included as a component unit of the City of New Smyrna Beach, Florida, and an integral part of the City's I i reponing entity. The basic financial statements are incorporated in the City's Comprehensive Annual Financial l Report as an enterprise fund actisity.
i
! In 1983, the Utilities Commission entered into a panicipation agreement with Florida Municipal Power Agency (FMPA) for an entitlement share of electric capacity and electric energy from FMPA's undivided ownership i interest in Florida Power and Light Company's St. Lucie Unit No. 2, a nuclear generating unit. The Utilities i Comnussion's role in the agreement is limited to that of a participant contractually obligated to purchase electric ;
capacity and electric energy. The agreement between the Utilities Commission and FMPA does not meet the ;
j critena for inclusion within the irporting entity of the Utilities Commission. The agreement specifically provides j that the arrangement is not ajoint venture and neither FMPA nor the other utilities which entered into participation
- agreements with FMPA for entitlement shares from FMPA's undivided ownership interest in St. Lucie Unit No.
2 are accounting for the agreement as ajoint venture. Accordingly, the Utilities Commission is not accounting i for the agreement as ajoint venture.
b Basss ofAccounting j Basis of accounting refers to when revenues and expenses are recogmzed in the accounts and reported in the financial statements. It relates to the timing of the measurements made, regardless of the measurement focus applied. The Utilities Commission utilizes the accrual basis of accounting. By utilizing tMs method, revenues are recognized when they are earned, and expenses are recognized as they are incurred. Unbilled utility sersice
. receivables are recorded so as 'o provide a better matching of service revenues and the costs of prosiding the i service. Based on the accounting and reporting standards set forth in Govemment Accounting Standards Board i (GASB) Statement No. 20, " Accounting and Financial Reporting for Pmprietary Funds and Other 1
GovernmentalEntities that use Pmprietary FundAccounting," the Utilities Commission has opted to apply only those accounting and reporting pronouncements issued by the GASB subsequent to November 30,1989.
i Budget andBudgetaryAccounting An annual budget was adopted for the electric, water, pollution control and water reuse utility systems. The j budget was adopted on a basis consistent with generally accepted accounting principles (GAAP) except that j certain other cash receipts and payments are treated as budgetary items to maintain efTective fiscal and budgetary l control over the collection and disposition of all commission resources. Specific budgetary control is exercised l over internal operating transfers to restricted funds, payments of principal on long-tenn debt obligations, and
! collections ofcontributed capital which are recogmzed in the budget as additions and/or deductions to reconcile
- budgeted net cash nxcipts to reported net income (loss) for each system. Budget appropriations are prepared by e the administrative staff and approved as provided by law by the Utilities Commission. Budgetary control is exercised at the departmental level. Budget amendments, if any, can be requested by the Director of Utilities. j llowever, all budget amendments must be approved by the Utilities Commission. Unexpended appropriations !
for operations lapse at year end. No supplemental appropriations were required for the current year. j 1
l 1
l
1 NOTES TO THE FINANCIAL STATEMENTS (Continued)
September 30,1996 and 1995 UTI1JflES COMMISSION, CITY OF NEW SMYRNA BEACII, FLORIDA ;
NEW SMYRNA3EACH, FLORIDA Note 1s Cash and Cash Equivalents Summary The Utilities Commission invests all cash balances in interest bearing accounts. Earnmgs from these investments of are appropriately allocated to the investing fund accounts based upon the investment equity and are used, where Significant applicable, to finance general Utilities Commission operations. For purposes of the statement of cash flows, the Accounting Utilities Cannussion censiders all highly liquid debt instruments purchased with original maturity dates of three Polices months or less to be cash equivalents.
(Continued)
Investments Investments are recorded at cost or amortized cost, which approximates market. Adjustments are made to cost, for any premium or discount, which is amortized over the maturity of the investment Receivables Accounts mceivable have been reported net of an allowance for uncollectible accounts which has been provided based upon management's analysis of historical trends. Utility operating revenues are recognized on the basis of cycle billings rendered monthly. Unbilled accounts receivable are accmed at September 30th, to recognize the sales revenues camed between the last meter reading date made through the end of the year.
Inventories Inventories are priced at cost by the use of the "first-in, first-out" method of accounting. The effect of this method is to flow the costs of the materials and supplies in the order in which they are purchased and to assign a balance sheet inventory valuation more nearly at current replacement value. Electric line transformers, electric meters, and replacement units for the generating plants are classified as utility plant in accordance with accepted industr practices set forth by the National Association of Regulatory Utilities Commissioners (NARUC).
UnamortizedDebt Discount, Issuance Expenses, andDeferredAmountfrom Refunding 1 Original issue discounts, issuance expenses, and deferred amounts from refundings of utilities certificates are l appropriately deferred and amortized over the remaining terms of the applicable revenue certificate issues (or life of the old debt, whichever is shorter, for deferred amounts from refundings) using the bonds outstanding method which approximates the interest method. Unamortized revenue certificate discounts are presented in aggregate i in the fmancial statements as a reduction of the carrying cost of the related long-term debt. Unamortized debt issuance costs and deferred amounts from refundings are presented as other assets.
RntrictedAssets '
haceeds from debt, funds required to be set aside for the payment of revenue bonds debt service and contingencies, and other specific assets set aside for restricted purposes which cannot be used for routine operations are classified as restricted assets since their exclusive use is limited by applicable bond covenants and other legalindentures.
Utility Plant Utility plant is stated at historical or estimated historical cost. The costs of additions, replacements, and renewals of units of pmperty are added to utility plant. The cost (estimated, if not known) of units of property retired, less net salvage, is charged to accumulated depreciation and the appropriate asset account. Donated utility plant is stated at its estimated fair market value on the date donated.
Maintenance and repairs ofproperty and replacements and renewals ofitems determmed to be less than units of property, are charged to operating expense as incurred. Construction period interest is capitalized net ofinterest camed on unexpended construction funds in accordance with the applicable provisions of Financial Accounting Standard Number 62 and, therefore, depreciated over the remaining useful lives of the related assets.
7
.. , . .--. . - . . -_ - -- . - . . - -- . . ~ .. - . - - . _
, l l
. NOTES TO THE FINANCIAL STATEMENTS (Lentinued)
- September 30,1996 and 1995
, UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACII, FLORIDA
! Note 1: Depreciation is provided for by utdi7ation of the straight line method (half-year convention in year of acquisition)
Summary calculated on a senice life basis to amortize the cost of the assets over their economic estimated useful lives which of are as follows:
Signincaat i Accounting XEats Polices Electric System:
(Continued) Production plant:
Nuclear production . .... ..... .. . . . . 27 Diesel production . . ... . . . . .. . .. 20-40 Transmission plant . . . . .. ...... ... 30-55 Distribution plant . ..... .. .. . . .. . 28-45 General plant:
Structures and improvements . . . . . . 40 Other general plant . . . . .. . 5-20
. Water System:
] Source of supply plant . . . . .. . 25-50
, Pumping plant .. . . . 35 l Watertreatmentplant . . . . . . . 40-50 i Transmission and distribution plant . . . . 25-50 General plant:
l Structures and improvements . .. . . 35
- Other general plant . .. . . 10-35
- Pollution Control System
Collectionplant . . . .. ... . .. .. . . 35-50 i
Pumping plant:
1 Structures and improvements .. 50 1
- Pumping equipment . . . . . . . . . . 25 i Treatment and disposal plant . . . . . .. . 25-40 Generalplant . . . . . . 10 50 ;
Common Plant:
Structures and improvements , , .. . 35 i
.l Other general plant . . . . .. .. . 5-15 i l Water Reuse System: )
. Structures and improvements . . . .. 50 1 ]
Transmission and distribution plant . .. . . .. .. .. .. 50 i CompensatedAbsences l The portion of employee payroll costs paid subsequent to year-end attributable to services performed prior to
- year-end is recorded and recognized as a current liability. Employees earn annual vacation leave at the rate of 80
. hours per year for one thmugh five years of service and 80 hours9.259259e-4 days <br />0.0222 hours <br />1.322751e-4 weeks <br />3.044e-5 months <br /> plus eight hours for each two years service over the first five years to a maximum of 160 hours0.00185 days <br />0.0444 hours <br />2.645503e-4 weeks <br />6.088e-5 months <br /> per year. All outstanding vacation leave is payable upon ;
termination. Employees accumulate ten hours of sick leave credit for each month on regular pay status. I
- Employees make an irrevocable election regarding the accumulation of credits and the amounts of credits which l can be re ived upon temunation. One option provides for the payment of 75 percent of unused sick leave at the l existing pay rate at termination. The second option requires the " banking" of at least 240 accumulated hours.
Hours accumulated in excess of 240 hours0.00278 days <br />0.0667 hours <br />3.968254e-4 weeks <br />9.132e-5 months <br /> will be paid annually at 75 percent of the preceding July Ist pay rate.
O Deferred Credits and Operating Reserves lhe reserve for nuclear re-fueling and maintenance outage is an operating reserve established to account for the j estimated charges to be incurred for the removal and installation of nuclear fuel assemblies. Charges are made I against the reserve at the time the actual re-fueling takes place.
8 l
l 1
- . . ~ .- . . .. . -- -- - -
l NOTES TO THE FINANCIAL STATEMENTS (Continued)
[ September 30,1996 and 1995 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA DEACll, FLORIDA Note 1: ne reserve for nuclear plant L.. ..uioning costs was established to account for the estimated costs ofnuclear -
Summary plant 4-. bing Amounts charged to expense annually (and appwpriately credited to deferred allowance '
of for decommissioning costs) are based on estimated future decommissioning costs in accordance with Federal Significant Energy Regulatory Commission requirements. Charges against the reserve will be made at the actual time of Accounting decommissioning.
Polices (Continued) ContributedCapital 1 Contributions ofcapital to a proprietary fund from any source received are recorded in an appropriately captioned contributed capital account.
Reserves Funded reserves are used to record a portion ofretained earnings which must be segregated for some future use and which are, therefore, not available for further appropriation or expenditure.
Use ofEstimates Management uses estimates and assumptions in preparing financial statements in accordance with generally ,
accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure ofcontingent assets and liabilities, and the reported revenue and expenses. Actual results could vary from the estimates assumed in preparing the fmancial statements. '
Rates, Revenues andFuelExpense Revenues are recogruzed based on monthly cycle billings to customers. The rate schedules are approv ni by the ,
Utihties Commission. Le electric rate schedule contains an energy cost adjustment clause which refieds the cost of fuel as well as the energy and fuel components ofpurchased power. Generally, the effect of the increasu and/or i decirases in the cost ofenergy is recovered over a four month period and is determined as the ddrerence between actual applicable fuel costs and the costs actually billed during the same period. The cost of nuclear fuel is l amortized to fuel expense based on the quantity of heat produced for generation of electric energy in relation to the quantity of heat expected to be produced over the life of the nuclear fuel core.
Note 2: Pursuant to the applicable provisions of Chapter 280, Florida Statutes, The Florida Securityfor Public Deposits Cash Act ("the Act"), the State ofFlorida, Department ofInsurance, Bureau of Collateral Securities, and the Department Deposits of Treasury have established specific requunnents relative to the security and collateralization for public deposits.
and Accordmgly, banks qualifying as a public depository in the State ofFlorida must adopt the necessary procedures l Investments outhned in these statutes and meet all of the requirements of this chapter to be designated by the State Treasurer i as eligible to receive deposits from municipal depositors. Collateral having a market value equal to 50% of the average daily balance for each month of all public deposits in excess of any applicable depository insurance is required to be pledged or deposited with the State Treasurer to secure such deposits. Additional collateral, up to a maximum of125% may be required if deemed necessary under the conditions set forth in the Act. Securities eligible to be pledged as collateral are generally limited to obligations of the United States govemment and any state thereof and are held in the name of the State Treasurer's office. Compliance with the provisions of Chapter 1 280, Florida Statutes, is monitored by the Department ofInsurance.
Deposits At September 30,1996 and 1995, the canying amounts of the Utilities Commission's deposits, including ccstificates ofdeposit, were $13,597,987 and $ 13,412,950, respectively. The September 30,1996, bank balance was $14,717,153 ofwhich $100,000 was covered by federal depository insurance and $14,617,153 was secured in accordance with the statutory provisions of the Act. Included in the carrying amount of Commission deposits is $8,450 in petty cash and change funds.
9 l
.~ . - - - . - . - - . - . - - . _ - - . . - - - - - - - . _ - . . . - .
NOTES TO THE FINANCIAL STATEM ENTS (Continued)
- September 30,1996 cad 1995 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACil, FLORIDA I NEW SMYRNA BEACil, FLORIDA i
Note 2r invesenents
! Cash The Utilities Conunission's investment policies are governed by state statutes and local resolution Allowable l Deposits investmmt instruments include: bonds, notes, certificates of indebtedness, treasury billJ or other securities which
. and are guaranteed by the full faith and credit of the United States of America, interest bearing savings accounts, I2 Vestments interest bearing certificates of deposit and interest bearing time deposits. At September 30,1996, the !
(Continued) Commission's investments included United States Treasury State and Local Govemment (SLOS) Bonds and ;
ovemight investments in money market funds which were secured by U. S. Treasury obligations. The investmen5
- are categorized to give an indication of the level of risk assumed by the Commission at year-end. Category 1
- includes investments that are insured, registered, or collateralized under the applicable sections of the Act, or for
- which the securities are held by the Commission or its agent in die Commission's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the banks' trust departments or agents i
in the Conumssion's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the banks, or by their trust departments or agents but not in the Commission's name.
l At September 30,1996, the Commission's cash and investments are categorized as follows:
Carrying Market i i Tyne ofInvestment Catenorv 1 Catecorv 2 Catecorv 3 Value Value 1
I U.S. Treasury State and Local Govemment i Series (SLGS) Bonds . $ 377,700 0 0 377,700 377,700
) Repurchase agreements . . .. 0 0 4.589.331 4.589.331 4.561.780 Totals $ 377.700 0 4.589.331 4.967.031 4.939.480
}
l Note 3: A summary of net accounts receivable at September 30, is as follows: l Accounts 1996 1995 j Receivable ;
] Billed customer accounts receivable . $ 1,718,733 1,560,020 l
- Due from other governments 0 54.951 l
4 1,718,733 1,614,971 I Less: allowance for doubtful accounts .. . (57.491) (56.934)
{ .
Totals .. . . .. $ 1.661.242 1.558.037 10
l NOTES TO TIIE FINANCIAL STATEMENTS (Continued) l September 30,1996 and 1995 l UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACll, FLORIDA .
l NEW SMYRNA BEACII, FLORIDA l
Note 4: A summary of restricted assets at September 30, is as follows:
l Restricted Assete Deposits / Accrued 1996 1995 I Cash Investment Interest _ Totals Total I Debt service funds:
1978 Sinking Fund . . $ 0 0 0 0 1,041,622 1978 Reserve Fund . 0 0 0 0 2,047,395 I 1987 Sinking Fund , , 0 0 0 0 367,529 l 1987 Reserve Fund . 0 0 0 0 740,200 i
1992 Sinking Fund . . , 0 621,736 0 621,736 615,529 1992 Reserve Fund , , 0 1,074,200 0 1,074,200 1,074,200 1993 Sinking Fund 0 1,107,587 0 1,107,587 1,101,227 1993 Reselve Fund , 0 1,655,129 0 1,655,129 1,655,129 1996 Sinking Fund 0 877,104 0 877,104 0 1996 Reserve Fund 0 2.603.727 0 2.603.727 0 0 7.939.483 0 7.939.483 8.642.831 Renewal and replacement funds:
Res. No. 28-78 2,653,208 0 13,160 2,666,368 2,066,774 ,
Capacity fee fund 1.065.232 0 0 1.065.232 1.359.393 !
3.718.440 0 13.160 3.731.600 3.426.167 Construction funds:
1992 Certificates 580,458 0 2,667 583,125
)
1,957,953 l
Customer deposits , , 1,020,267 0 3,653 1,023,920 1,008,581 CR-3 decommissioning fund 1,241,930 0 3,612 1,245,542 898,370 Mandate pollution control plant fund 860,618 0 2,603 863,221 0 Rr*.e stabilization fund , , 1.527.758 0 5.207 1.532.965 420.949 Totals $ 8.949.471 7.939.483 30 902 16.919.856 J6.364.851 Note 5: A summary of utility plant at September 30, is as follows: )
Utility l Pouuuan water Plant Eintric .Esisr c.salml Esms common L922 L921 Land and larul nghts . $ 1,672.728 487,145 220,433 0 591,906 2,972,212 2,962.212 Structures and improvements . . . . 2,599,605 5,087,586 4,166,017 1,679,190 2,767,111 16,299,509 16,189,707 l Productaan plant, nuclear fuel and I treatment plant . . ... , 11,373,930 5,772,278 4,290,873 0 (, 21,437,081 21,046,307 i Transnuasion, distnbubon, and collecuan and tresunent plant . 40,794,638 16,945,638 14,844,268 2,838,803 0 75,423,347 72,7 3,876 other general plant and equipment , 407 616 0 0 0 5.892.401 2 01gH 6_156.120 1 56,848,537 28,292.647 23,521,591 4,517,993 9,251,418 122,432,186 119,134.222 Accumulated depreciaban (24 195 916) (6.941.319) (8.213.788) (263.5201 Jg/14jf) (44.074_957) (40_877.320) 32,652,621 21,351,328 15,307,803 4,254,473 4,791,004 78,357,229 78,256,902 Construction m progress . 1.241.710 615.619 1.187.180 457 808 1.225.772 4 721 089 4.246.511 tjuhty plant, net $ ).J9_4.jl] gog 16 494 983 4 707 78] 6 016.776 81.080.318 8M01413 Capitalized interest on outstanding tax-exempt revenue cenificates charged (credited) to projects during construction was $ 18,557 and $55,782, for 1996 and 1995, respectively (net ofinterest earned on unexpended long-term debt proceeds totaling $171,376 and $200,260, respectively).
I1 l
i
NOTES T@TIIE FINANCIAL STATEMENTS (Continued)
September 30,1996 and 1995 UTILITIES COMMISSION, CITY OFNEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACII,RORIDA Note 6: A summary oflong-term debt outstanding at September 30, is as follows:
leng-Term Debt
]325 J3.25 Utilities System Revenue Refunding and improvement Certificates, Series 1978-- 7.00% and 7.125% certificates due through 2010 . $ 0 19,415,000 Utilities System Refunding Revenue Certificates, Series 1987--6.00%
to 7.10% certificates due through 2011. . . .. . 0 6,770,000 Utilities System Revenue Certificates, Series 1992--4.10% to 5.60%
due serially to 2004, with $515,000 (5.35%), $1,020,000 (5.80%)
$ 1,230,000 (6.00%) and $10,160,000 (6.00%) term bonds due in 2002,2007,2010, and 2013, respectively .. . 14,575,000 14,760,000 Utilities System Refunding Revenue Certificates, Series 1993--3.20% to 5.25% doe serially to 2011, with $3,685,000 (5.00%) and $6,245,000 (5.00%) term bonds due in 2014 and 2019, respectively 22,525,000 23,065,000 Utilities System Refunding Revenue Certificates, Series 1996--4.10% to 5.30% due serially to 2011 26.210.000 0
63,310,000 64,010,000 Less: unamortized debt discount .
(1.190.294) (1.434.192) 62.119.706 62.575.808 Less: current maturities:
Series 1978 Certificates 0 725,000 ;
Series 1987 Certificates . .
0 270,000 Series 1992 Certificates . . 195,000 185,000 Series 1993 Certificates . . 555,000 540,000 Series 1996 Certificates .
930.000 0 1.680.000 1.720.000 Total long-term debt, net
$ 60.439.706 .fA855 808 The authorization for the outstanding 1978 Certificates and all subsequent issues (collectively referred to as the
" Certificates) provides that the Commission will not issue additional obligations except for the constmetion and I acquisition of additions, extensions and improvements to the system or for refunding purposes and except upon I the parity conditions provided in the authorizing resolution. The Certificates are payable from and secured by a first lien upon and pledge of the net revenues derived from the operation of the system. The Certificates do not constitute generalindebtedness of the Commission or the City of New Smyrna Beach, Florida (City), and the City l is not obligated to levy any taxes for the payment thereof.
Under the terms ofits long-term debt agreements, the Commission has agreed to maintain certain restricted funds and to comply with the covenants contained in such agreements which require specific actions to be taken by the !
Commission. Certain of these agreements contain the following provision relating to the right of the obligation !
holder:
"Any holder of certificates or any coupons appertaining thereto issued under the prosisjon hereof or any tmstee acting for the holders of such certificates may by suit, action, mandamus or other procmhngs in any comt of competent jurisdiction, protect and enforce any and all rights, including the right to the appointment of a receiver, existing undei the laws of the State of Florida, or granted and contairal herein, and may enforce and compel the performance of all duties herein required or by any applicable statutes to be perfonned by the Commission or by any officer thereof. Nothing herein, however, shall be construed to grant to any holder of the certificates any lien on any real property of the Commission or the City.
12
NOTES TO THE FINANCIAL STATEMENTS (Continued)
September 30,1996 and 1995 )
UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACII, FLORIDA NEW SMYRNA BEACII, FLORIDA Note 6r On August 15,19%, the Commission issued $26,210,000 in Utilities System Refunding Revenue Certificates, Long-Term Series 1996, with an average interest rate of 4.72% to advance refund $18,690,000 of outstanding 1978 Series Debt Certificates with an average interest rate of 7.1% and $6,500,000 of outstanding 1987 Series Certificates with an (Continued) average interest rate of 6.9%. The net proceeds of $26.02 million (after payment of $2%,893 in underwriting fees, insurance, and other issuance costs) plus $868,526 in excess 1978 and 1987 sinking fund monies were used to purchase $26,386,878 in U.S. govemment securities and to pay a $505,014 transferred proceeds penalty at the date of closing. The U.S. government securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the 1978 and 1987 cenificates through October 1,19%, when the 1978 and 1987 Series certificates will be called for complete redemption. As a result, the 1978 and 1987 Series certificates are considered to be defeased and the liability for those certificates has been removed at August 15, 1996.
Although the advance refunding resulted in the recognition of a deferred loss on advance refunding in the amount af$1,513,137 (which will be amortized over the life of the refunding certificates) for the year ended September 30,1996, the Commission in effect reduced its aggregate debt service payments by almost $4.2 million over the next 15 years and obtained an economic gain (difference between the present values of the old and new debt senice payments, adjusted for old and new sinking funds on hand) of $2.1 million.
The aggregate annual debt smice requirements in each of the next five years are as follows: $5,083,448 - 1997;
$5,309,403 - 1998; $5,309,348 - 1999; $5,317,215 - 2000; $5,307,235 - 2001; and $72,876,568 - thereafter. ,
Note 7r In prior years, the Utilities Commission defeased certam ofits outstanding utilities revenue certificates (and certam Prior general obligation bonds of the City of New Smyma Beach, Florida), originally issued for the System and payable Years' from revenues derived from the operation of the utilities systems by placing the proceeds ofnew certificates in Defeasance urevocable trusts to provide for all future debt senice payments on the defeased certificates / bonds. Accordingly, 4 of Debt the trust account assets and the liabilities for the defeased bonds are not included in the accompanying financial statements. They include the following at September 30, 122fi 1221 1978 Refunding:
Series 1962 refunding-3.5% due through 1999 . $ 35,000 35,000 Series 1962-3.9% to 4.2% due through 2000 . . . .. 780,000 1,010,000 Series 1965--4.2% to 4.25% due through 2004 .. . 1,610,000 1,650,000 Series S-1%3--3.9% due through 2002 . . . . 150,000 170,000 Series T 1963--4.0% due through 2003 .. . . 438,000 493,000 Series B-1965--3.7% to 4.1% due through 2003 .. 260,000 290,000 Series 1975--3.75% to 6.2% due through 2004 . . . . . . 1,470,000 1,580,000 Series 1975A--5.0% to 6.6% due through 2005 . . 2,140,000 2,275,000 Series 1976--4.5% to 6.2% due through 2001 .. 2,245,000 2,675,000 1993 Refunding:
Series 1990--6.10% to 7.10% due through 10/98 call date . 14,065,000 14,275,000 1996 Refunding:
Series 1978-7.00% to 7,125% due through 10/96 call date . I8,310,000 0 Series 1987--6.00% to 7.10% due through 10/96 call date 6,500,000 0 13
._ - ~ - _. - _ - - . . . - - - ~ ~ . .. -- =. -- -.
NOTES TO TH E FINANCIAL STATEM ENTS (Continued)
September 30,1996 and 1995 1
UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH,110RIDA i NEW SMYRNA BEACH, FLORIDA I
Note 8: The following is a summary of changes in contributed capital:
Contributed 4 . Capital Customer Federal Customer 2 Contributions fKants Assessments Totals 1
Balances, September 30,1994 . . ........ $ 15,224,613 7,306,904 1,717,736 24,249,253 i
Additions ........ . .... ... 6.955.538 0 0 6.955.538 Balances, September 30,1995 . . . .. . . . . . . . 22,180,151 7,306,904 1,717,736 31,204,791
, Additions . . . .... . ... ..... 1.599.565 0 0 1.599.565 Balances, September 30,19% . .. $ 21222,2.15 3 1.717.736 n20425 i
4 i Note 9: The legislation that created the Utilities Commission requires it to pay to the general fund of the City of New Required Smyma Beach a sum equal to six percent (6%) of the gross revenues from utilities under Commission control.
I. Payment ' This payment is subordinate to the debt service requirement of all utilities revenue certificates and is recorded as To City a quasi <:xtemal transaction fcr fmancial reportmg purposes. The amount paid to the City totaled $2,076,104 and 1 $1,945,294 for the years ended September 30,19% and 1995, respectively. The balances due to the City at September 30,1996 and 1995, totaled $397,626 and $367,911, respectively. i i
j Note 10: The Commission contributes to the Florida Retirement System of the State ofFlorida, a cost sharing, multiple-
! Employee employer public employee retirement system created in December,1970, that acts as a common investment and Pension administrative agent for municipalities and other qualifying political subdisisions in the State of Florida. The
- Plan Commission's payroll for employees covered by the System for the year ended September 30,19%, was
$5,228,872. Total payrc.il for the year was $5,757,537.
I All full-time employees are eligible to participate in the system, which also prosides for death and disability benefits. Benefits fully vest on reaching 10 years of creditable senice and are computed on the basis of age,
!- average fmal compensation, and senice credit. Average Final Compensation (AFC) is the average of the five i highest fiscal yeans of earnings. Each year of senice is expressed as a percentage of AFC. The total percentage j value received is determmed by calculating the total value of all senice, which is based on the retirement plan 3 to which the member belonged when the senice was earned as follows:
1-Regular Class l Retirement up to age 62 or 30 years senice . . 1.60 %
- Retirement at age 63 or 31 years senice . 1.63 %
Retirement at age 64 or 32 years senice . . 1.65%
{ Retirement at age 65 or 33 years senice 1.68 %
- SpecialRisk Class
- Service from 12/1n0 through 9/30n4 . 2.00 %
Senice from 10/104 through 9/30n8 . . . 3.00 %
Senice from 10/108 through 12/31/88 . .. 2.00 %
l Service from 1/1/89 through 12/31/89 . . . 2.20 %
, Service from 1/1/90 through 12/31/90 . . 2.40%
4 Senice from 1/1/91 through 12/31/91 .. 2.60 %
Service from 1/1/92 through 12/31/92 . . . 2.80 %
j Service on or after 1/1/93 3.00 %
14 d
. . - - . ~ .. - . - - - - - ~ . _ - = . _- - .. . . __
NOTES TO THE FINANCIAL STATEMENTS (Continued)
September 30,19% and 1995 i l UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACII, FLORIDA l l NEW SMYRNA BEACII, FLORIDA l
Note 10: The funding methods and detennmation of benefits payable are provided in the various acts of the Florida ,
Employee Legislature, which created the fund, including subsequent amendments thereto. In previous years, these acts Pension provided, in general, that funds were to be accumulated from employee contributions, employer contributions, I Plan State appropriations and income from investments of accumult.ted funds. The act also provides that, should the (Continued) accumulated funds in the fund at any time be insafficient to meet and pay the benefits due, the employer shall l supplement the funds by an appropriation from current funds, or from any revenues which may lawfully be used j for said purposes, in an amount sufficient to make up the deficiency.
l l
[ The Commission's contribution to the plan during the year ended September 30,19%, totaled $919,453, which i was 16.91% (regular class) of the qualifying compensation for the period from October 1,1995 through i December 31,1995, and 17.00% for the period from January 1,19% through September 30,1996. The representative amount of the Commission's contribution to the plan was not provided by the plan administrator, ,
however, it was not significant in relation to the total contributions required of all participating entities !
(approximately $2.93 billion). There were no employee contributions made during the year.
The " pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, j adjusted for the efrects of projected salary increases and step-rate benefits, 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 l and is intended to help users (1) assess the Florida Retirement System's funding status on a going-concem basis, J (2) assess progress made in accumulating suflicient assets to pay benefits when due, and (3) make comparisons among Public Employee Retirement Systems and employers. The measure is independent of and should not be confused with the actuarial funding method used to determine contributions to the system.
'Ihe plan does r.ot make separate measurements of assets and pension benefit obligations for individual employers.
The estimated peasion benefit obligation at July 1,1995, was computed based upon assumptions detemuned through an independent actuarial valuation performed as of July 1,1995, in accordance with Govemmental Accounting Standards Board Statement No. 5. Significant actuarial assumptions used in the valuation include (a) a rate of retum on the investment of present and future assets of 8 percent per year compounded annually; (b) projected annual salary increases of 7.5 percent per year compounded annually, (c) payroll growth of 7.0 percent per year, and (d) post-retirement benefit increases of 3 percent per year.
The total unfunded pension benefit obligation (estimated) applicable to the Commission's employees is not separately determined by the actuary. At July 1,1995, the unfunded pension benefit obligation of the Florida Retirement System was $5.728 billion, which is computed as follows:
Amount Pension Benefit Oblication (000.000 Omitted)
Annuitants and vested ternunated employees .. ... . . ... . $ 15,479 i Current Employees:
Accumulated member contributions . .. . 400 Employer-financed Vested Benefits . . . . . . . . . . . 27,114 Employer-financed Non-vested Benefits . . . . . .. .. 4.311 Total Pension Benefit Obligation . .. . . 47,304 Net Assets available for benefits at actuarial value (amortized cost is $37,524; market value is S45,223) . .. . . . . . . . ., 41.576 Unfunded Pension Benefit Obligation ... .. . . . $ 5.7E Ten-year historical trend information showing the Florida Retirement System's progress in accumulating sufficient assets to pay benefits when due is not presently available from the State of Florida, Department of Administration, Division ofRetirement.
i 15
NOTh J TO THE FINANCIAL STATEMENTS (Continued)
September 30,1996 and 1995 s
UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA ,
NEW SMYRNA BEACII. FLORIDA '
Note 10: The following data is provided as part of the biennial actuarial valuation to meet the requirements of GASB l Employee Statement No. 5, and includes data for valuation years only, beginning with fiscal year 1986-1987, the first year i Pension for which it was available:
l Plan '
(Continued) Analysis of Funding Progress I (000's Omitted) ,
l Net Assets Unfunded Obligations !
Available Pension Pension Annual As Percent Fiscal For Benefit Percent Benefit Covered ofCovered
.Ysar Benefits Oblication Funded Oblication Payroll Egnp.ll 1986-1987 $13,977,000 $20,819,000 67.1 % $6,842,000 $9,353,674 73.2%
1988-1989 17,558,662 27,369,885 64.2 % 9,811,223 10,846,531 90.5 %
1990-1991 23,365,936 33,818,867 69.1% 10,452,931 13,%1,619 80.0 %
1992-1993 31,693,000 39,685,000 79.9% 7,992,000 14,562,000 54.9%
1994-1995 41,576,000 47,304,000 87.9 % 5,728,000 16,281,000 35.2%
Note 11: The following is a summary of the segment information for the Commission's individual utility systems:
Segment IIformation Pollution Water Electric Water Control Reuse System System System System Intgl j i
Operating revenue . $ 25,872,665 4,145,975 3,332,543 411,907 33,763,090 Depreciation / decommissioning . 2,036,669 715,240 748,096 83,473 3,583,478 l-Operating income . 3,128,597 733,904 332,034 252,772 4,447,307 Required payments to City . . 1,609,406 256,106 208,474 2,118 2,076,104 Net income (loss) . 1,813,372 (116,704) 75,545 (39,348) 1,732,865 Contributed capital . 1,224,015 11,327,338 20,238,004 15,000 32,804,357 Utility plant acquisitions 1,529,689 1,167,846 219,502 701,171 3,618,208 Utility plant retirements . 270,505 36,673 13,067 0 320,245 Revenue certificates payable . 32,174,019 18,636,286 6,301,611 6,198,084 63,310,000 Utility equity ... 10,907,837 12,501,364 17,299,130 (711,986) 39,996,345 Total assets . . 52,639,191 29,677,763 21,383,171 5,685,968 109,386,093 Note 12: "Ihe Commission is engaged in routine litigation incidental to the conduct afits utilities affairs. In the opinion of legal legal counsel to the Commission, no legal proceedings are pending or threatened against the Commission which Matters cre not covered by applicable insurance which would inhibit the Commission's ability to perform its operations or materially affect its financial condition.
Note 13: The Commission, acting through the Florida Municipal Power Agency (FMPA), the Utilities Commission is a Commitments participant in a portion of Florida Power and Light Company's (FPL) St. Lucie Unit No. 2, a nuclear generating unit. FMPA originally acquired an 8.806% undivided ownership interest of St. Lucie No. 2 together with rights to receive electric capacity and electric energy under a reliability exchange agreement. The Commission's participation provides for a 9.884% entitlement share of FMPA's ownership interest. A reliability exchange agreement provides for FMPA's exchanging 50% ofits share of the output from St. Lucie No. 2 for a like amount from FPL's exclusively owned St. Lucie No. I to mitigate the potential for economic loss resulting from the extended or permanent outage or early retirement of St. Lucie No. 2.
16
NOTES TO THE FINANCIAL STATEMENTS (Continued)
September 30,1996 and 1995 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACil, FIDRIDA ,
NEW SMYRNA BEACII, FLORIDA l Note 13: The Commission, as a participant, has also entered into a power sales contract which requires payment on a Commitments "take-and pey" basis for the Commission's entitlement share of the project capability for the St. Lucie Project for (Continued) each month during any portion of which elwtric capacity and electric energy are available to the Commission from the St. Lucie Project, including electric capacity and electric energy under the reliability exchange agreement with ;
FPL. In the event payment is not required for any month under 'ae Commission's power sales contract, it is required to make payment for such month under its project n.pport contract on a "take-or-pay" basis. The i payment under the project suppoit contract would be the amount the Utilities Commission would have been required to pay under its pown sales contract for such month if any electric capacity and electric energy from the St. Lucie Project had been made available to them. As a result of these agreements, the Commission is obligated to provide payments of approximately $3.9 million annually.
Based on an updated engineering report dated Febmary 20,1995, the Commission's anticipated share of decommissioning costs applicable to its participation in Florida Power Corporation's (FPC) Crystal River Unit No. 3, a nuclear generating unit, is expected to be approximately $10.9 million at its expected date of decommissioning in 2016. An operating teserve was established to proside advanced funding for these estimated future costs. Funding of the reserve began in 1985. The balance in the fund, plus the interest earned thereon, are expwted to be sufficient to meet the Commission's portion of the estimated future decommissioning costs. The ,
provision for duuuuussioning expensc arcognized during the years ended September 30,1996 and 1995, totaled
$197,172 and $202,957, respectively.
The Commission has entered into an amended consent order agreement with the Florida Department of Environmental Protection to construct a 6 MGD advanced wastewater treatment plant by the year 2000. In :
addition to the constmetion of a new wastewater treatment plant west of the city, the Commission plans to continue !
expansion of it's reclaimed water effluent disposal system which will be integrated with the new wastewater treatment facilities and expand its raw wastewater transmission system, inlcluding pump stations, and to be ;
interconnected with the new wastewater treatment plant. The estimated total project construction cost is $27.5 ;
million, ofwhich $8.7 million will be financed from existing cash funds, and $18.8 million from the proceeds of long-term debt. The Commission is currently in the process of negotiating a long-term capital financing ,
arrangement with the State Revolving Fund.
l During 19%, the Commission had additional unrecogmzed constmetion contract commitments of approximately
$2.0 million for utility plant expansion and upgrading. '
i 1
17 I
l i
l SUPPLEMENTAL INFORMATION This section is composed of the following:
Supplemental Detail Financial Information of the Electric System, Water System, !
Pollution ControlSystem and Water Reuse System ,
StatisticalSection These schedules proside a more detailed view of the "Bc Financial Statements" presented in the preceding subsection.
Resolution Numbers 16-75 and 28-78, as amended, established the electric, wter, pollution control, and unter reuse systems as a single enterprise fund. These schedules are presented to pmside detailed infonnation on the individual utility systems and to present the budgetary comparisons that are not necessaryfor a fair presentation in conformity with generally accepted accounting principles.
d l
SCHEDULE OF REVENUES, EXPENSES AND Schedule 1 CHANGES IN RETAINED EARNINGS For the Fiscal Year Ended September 30,1996 With Comparative Actual Amounts for the Fiscal Year Ended September 30,1995 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FI.DRIDA NEW SMYRNA BEACH, FLDRIDA Pollution Water Totals Electric Water Comrol Reuse '"'1996 1995 -
, Operating Revenue:
Sales............................................ $ 25,6%,159 4,043,027 3,315,859 411,907 33,466,952 32,844,658 i l Other revenues . . . . . .. . . .. . . . . . . . . . . .. . . . . . . . . 176,506 102,948 16,684 0 2 % ,138 290,794 I Total operating revenue .............. 25,872,665 4,145,975 3,332,543 411,907 33,763,090 33,135,452 l
Operating Expenses:
Production expenses .... .................... 15,063,729 940,291 0 0 16,004,020 15,736,225 Transmission, distribution, and sewage collection and treatment ......... ...... 1,364,508 413,068 1.207,688 68,546 3,053,810 3,433,468 Customer accounting . ........... ......... 508,557 191,521 119,908 0 819,986 808,391 Admmistrative and general .............. 2,161,199 895,845 716,343 4,998 3,778,385 4,300,729 ;
Required payments to the City of i Nsw Smyma Beach ...................... 1,609,406 256,106 208,474 2,118 2,076,104 1,945,294 l Depreciation and decommissioning .. ... 2,036,669 715,240 748,096 83,473 3,583,478 3,540,923 Total operating expenses ............ 22,744,068 3,412,G71 3,000,509 159,135 29,315,783 29,765,030 i Operating income.......... ........... 3,128,597 733,904 332,024 252,772 4,447,307 3,370,422 l
Nonoperating Revenue (Expenses): 1 Interest earmngs .... ... .... ..... . ...... .. . 425,570 227,388 160,314 11,373 824,645 762,206 Other income . . . . . . . . . . . . . . . . . . . . . .. . .. . . . 199,101 39,N8 13,972 0 252,121 355,693 laterost and debt expense .................. (1,895,445) (1,112,594) (420,158) (303,493) (3,731,690) (3,791,166)
Other expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,333) (8,221) (10,093) 0 (20,647) (45,577)
Gain (loss) on disposal of assets ......... (42,118) 3,771 (524) 0 _ (38,871) (32,988)
Total nonoperating revenue ...... .. (1,315,225) (850,608) (256,489) (292,120) (2,714,442) ___ (2,751,832)
Net income (loss) ..................... 1,813,372 (116,704) 75,545 (39,348) 1,732,865 618,590 Retamed earnings, beginning of year ....... 7,870,450 1,290,730 (3,014,419) (687,638) 5,459,123 4,840,533 Retained earnings, end of year ............... $_1683 822 1,174,026 _(2,938,874) (726,986) 7,191 9_88_
t 5 459 1123_
1 1
18 l.
SCHEDULE OF REVENUE, RECEIPTS, EXPENSES AND DIS ~URSEMENTS - Schedule 2 BUDGET AND ACTUAL - ELECTRIC SYSTEM (NON-GAAP BUDGETARY BASIS)
For the Fiscal Year Ended September 30,1996 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FLORIDA Variance Favorable Budget Actual (Unfavorable)
Revenue and Receipts:
Direct Sales:
Electri c sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 24,916,938 26,733,672 1,816,734 Othe r reve nues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202,000 176,506 (25,494)
Nonoperating revenue:
Interest ea rnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290,000 425,570 135,570 Meter deposit mterest expense. . ........... ................. . .. . 0 (41,877) (41,877)
Other revenues (e xpenses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190,000 1%,768 6,768 Total revenue and receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,598,938 27,490,639 1,891,701 Operating Expenses:
Power production and fuel ............... .. .... .. ...... . .. . ..... . . 14,888,678 14,866,557 22,121 Transnussion and distribution ........................ ... .......... 1,504,450 1,364,508 139,942 Customer accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 524,971 508,557 16,414 ;
Administrative a nd ge ne ral . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,671,445 2,161,199 510,246 Required payments to the City of New Smyrna Beach ..... ... 1,505,216 1,609,406 (104,190)
Decomnu,s siom ng expense... . . . . . . .... . .. . . . . . . . .. . . .. . . . . . . . . . . 0 197,172 (197,172)
Total operating e xpe nses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,094,760 20,707,399 387,361 Net re ve nue a nd receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,504,178 6,783,240 2,279,062 Operating Transfers In (Out):
Sinking Funds:
1978 Certi ficates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,005,797) (838,402) 167,395 1987 Certi ficates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (330,505) (275,466) 55,039 1992 Ce rti ficates . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (557,471) (557,471) 0 l 1993 Certi ficates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (884,706) (884,706) 0 i 1996 Ce rti ficates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 (295,227) (295,22 7E778 479) 72 85T,272) (7279 Renewal and Replacement Funds:
Required contributi on . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,725,699) (1,725,699) 0 Restricted fund contribution to Rate Stabilization Fund ........ 0 (1,094,681) (1,094,681)
Total operating transfers (out)............... ................. (4,504,178) -(5,671,652) (1,167,474)
Budgeted net cash receipts . . ...... . ... .......... . .. . ... .. .. $ 0 T,TTI~58F 1.111,588 Additions (Deductions) Required to Reconcile Net Cash Receipts to Net income (GAAP Basis):
Unbilled reve nue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (938,375)
Capitalized nuclear plant improvements recovery charges ..... (99,138)
Principal portion of required Sinking Fund transfers ........... 886,039 .
Excess Sinking Fund transfers ........ . . .. . ... . ..... ...... .. .. .... 203,897 l Net transfers to Renewal and Replacement Fund ............... 1,725,699 l Net transfers to Rate Stabilization Fund........................... 1,094,681 i Gain (loss) on disposal of property and equipment ............. (42,118)
Depreciation and decomnussiomng. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,036,669)
Amortization of debt expense and loss on refunding......... .. (92,232
-~70F784)
N e t income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $_1,813,372 19
., - .- - - _ - . . _. - - - . - - -=_
Y
- SCHEDULE OF REVENUE, RECE1FTS, EXPENSES AND DISBURSEMENTS - Schah 3 BUDGET AND ACIVAL - WATER SYSTEM (NON-G AAP BUDGl?TARY BASIS)
For the Fiscal Year Mad September 30,1996 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FLORIDA Variance Favorable Budget Actual (Unfavorabic)
Revenue and Receipts:
Direct Sales:
Water sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$. .3,740,850 ..... 4,214,885 474,035 Other revcaues .. .. . . . ... . . . . . . .. . . .. .. . . . . . . .. . . .. .... . .. . . .... . 110,000
... 102,948 G,052)
Nonoperating revenue:
I nterest earmngs . . .. . . . .. .. .. . .. . . . ... . . .... . . . . ... . . . . . . . . . . . . ... . . 200,000 227,388 27,388 Meter deposit Interest expense.. . . . .. . . . . . . . . . . . . . . . . .. . . .. .. ... .. O G,852) G,852)
Other revenues (expenses) .......... . .. . .. .. ........ ... ........... 15,000 30,827 15,827 Capacity and other fees . .. .. . .. . . . .... . . . .. . . . . ... . . . . .. .. . . . . .. . . .. . 268,661 239,947 (28,714)
Meter setting installation charges ........................ . ........ 100,000 69,065 (30,935) a Total revenue and receipts ............................ ......... 4.434,511 4,877,208 442,697
- Operating Expenses:
Water production .. . .. . . .. . . .. . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .. . . . .. . . 949,529 940,291 9,238 j Transmission and distribution . . . . . . . . .. . . . . . .. . . . .. .. . . . ... . .. ... . . . 426,845 413,068 13,777
- Customer accounting . . . . . . . .. . . . .. . . . . . . . .. . . . . . . . . . . . . .. . . . . . . . . . . . . .
' 209,363 191,521 17,842 Administrative and general . .. .... .............. .................... . 1,039,189 895,845 143,344 Required payments to the City of New Smyrna Beach ... ..... 240,106 256,106 (16,000)
Total operating expenses ... ...... ........ ...... .............. 2,865,032 2,6 % ,831 168.201 l Net revenue and receipts .... .. . ....... ..... .... .. .. .. ... . ... 1,569,479 2,t80,377 610,898 Operating Transfers In (Out):
Sinking Funds:
1978 Cenificates . . . . . . . . . .. . . . . . .. . . . . . . . . . .. . . . . . .. . . . . . . . . . . . . (562,020) (468,483) 93,537 1987 Certificates . . . . . .. . . ... . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .. .. . . . . (352,539) (293,830) 58,709 4
1992 Cenificates . . . .. . . .. .. . . . .. . .. . . . . . . . . . . ... . . . . . .. . . .. . . .. . . (170,796) (170,7%) 0 1993 Cenificates .. . .. . . . . . . . . . . . .. .. .. . . .. . . . . . . . . .. . . . . . . . . .. . . . . . . . . (572,095) (572,143) (48) 1996 Certificates . . . . . . ... . . . . .. . . . .. . . . . . . . .. . . . . . . . . .. . . . . . . . . . . . . 0 02030_) (202u030}
(1,657,450) , , B2) (49,832)
Renewal and Replacement Funds:
Requ ired contribution . . . . . . . . . . . . .. . . . . . . .. .. . . . .. . .. . . . . . . . . . . . . . (222,953) (222,953) 0 4 Restricted fund contribution ........... ..................... .... (268,661) (239,947) 28,714 (49T,614) (462,900) 28,714~
i Restricted fund contribution for operations ........................ 531,045 531,045 0 4
Restricted fund contribution to Rate Stabilization Fund.......... 0 (126,313) (126,313)
Total operat ng transfers (out)....................... ......... (1,618,019) (1,765,450) (147,431)
Budgeted net cash receipts .................................... $__(48,540) 414,927 463,4_67_
Additions (Deductions) Required to Reconcile Net Cash
, Receipts to Net Income (GAAP Basis):
Unbilled revenue. . . . . . . . . . . . .. .. . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . (171,858)
Capacity and other fees . . . . . . . . .. . . . ... . .. . . . . . .. . ... . . .. . . . .. . . . . . . . . (239,947)
. Meter setting installation charges ......... .......................... (69,065) 1 Principal portion of required Sinking Fund transfers ..... ...... 558,344
=
Excess Sinking Fund transfers ......................... ............ 101,025 l Net transfers to Renewal and Replacement Fund ................ (68,145)
Net transfers to Rate Stabilization Fund .......................... 126,313 Gain (loss) on disposal of property and equipment ............... 3,771 Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . G15,240)
Amortization of debt expense and loss on refunding ............. ( 829]
--(53 31)
Net (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (116,7()t) 20
SCHEDULE OF REVENUE, RECEH'fS, EXPENSES AND DIS'URSEMENTS - Schedule 4 BUDGET AND ACTUAL - POLLUTION CONTROL SYhTEM (NON-GAAP BUDGETARY BASIS)
For the Fiscal Year Ended September 30,1996 UT111I1ES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FLORIDA Variance -
Favorable Budget Actual (Unfavorable)
Revenue and Receipts:
Direct Sales:
Pollution control charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,214,489 3,486,440 271,951 Other revenues . . . . . . . . . . . . . . . . . . . . .. . . . . . . . ... . . . .. . . .. . .. . . . . . . . . . 10,000 16,684 6,684 Nonoperating revenue:
Interest earnings . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000 160,314 60,314 Meter deposit interest expense...... ....... ... ...... .......... .... 0 (2,617) (2,617) ,
Other revenues (expenses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000 3,879 (4,121)
Capacity and other fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166,398 140,001 (26,397)
Total revenue and receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,498,887 3,804,701 305,814 Operating Expenses:
Collection and treatment system ...................... ............. . 1,262,378 1,207,688 54,690 Customer accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130,618 119,908 10,710 Administrative and general . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 747,066 716,343 30,723 Required payments to the City of New Smyrna Beach .......... 203,802 208,474 (4,672)
Total operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,343,864 2,252,413 91,451 !
Net revenue and receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,155,023 1,552,288 397,265 Operating Transfers in (Out): ;
Sinking Funds:
197 8 Certificates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (517,601) (431,456) 86,145 ;
1987 Certi ficates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (51,412) (42,850) 8,562 ,
1992 Certi ficates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (20,655) (20,655) 0 1993 Certi ficates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (53,458) (53,462) (4) 1996 Certi ficates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 (125,716) (125,716)
(643,126) (674,139) (31,013) i Renewal and Replacement Funds:
Required contribution . .. .. ...... ... ........... ..... . .... .. ..... . .. (212,070) (212,070) 0 Restricted fund contribution ... .......... . ....... . ......... .. . ... (166,398) (140,001) 26,397 (37F468-) (352 071) 26,39T r
Restricted Fund contribution to Rate Stabilization Fund......... 0 (138,053) (138,053)
Total operating transfers (out). . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . (1,021,594) (1,164,263) (142,669)
Budgeted net cash receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 133,429_ 388,025 25_4,5_96_
Additions (Deductions) Required to Reconcile Net Cash Receipts to Net Income (GAAP Basis):
Unbilled revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (170,581)
=
Capacity and other fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (140,001)
Principal portion of required Sinking Fund transfers ............ 227,288 Excess Sinking Fund transfers ...... .... .... ...... .. ..... .. . .. ... 47,833 Net transfers to Renewal and Replacement Fund ......... ....... 352,071 Net transfers to Rate Stabilization Fund ........................... 138,053 Gain (loss) on disposal of property and equipment .............. (524)
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (748,096)
Amortization o f debt expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (18,523)
(312,480)
Net inco me . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..... .. $ 75_,545 21 i t
SCHEDULE OF U, VENUE, RECEIPTS, EXPENSES AND DISBURSEMENTS - Schedule 5 EUDGET AND ACTUAL - WATER REUSE SYSTEM (NON-GAAP BUDGETARY BASIS)
For the Fiscal Year Ended September 30,1996 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FLORIDA Variance Favorable Budget Actual (Unfavorable)
Revenue and Receipts:
Direct Sales:
R euse water sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 59,910 35,328 (24,582)
Reuse subsidy surcharge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 363,130 374,379 11,249 Nonoperating revenue:
Interest earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 11,373 (8,627)
- Total revenue and receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 443,040 421,080 (21,960)
Operating Expenses:
Transmission and distribution system .............................. 65,960 68,546 (2,586) l Administrative and ge neral . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,300 4,998 3,302 i Required payments to the City of New Smyrna Beach ......... 3,595 2,118 1,477 1 Total operating e xpenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77,855 75,662 2,193 ,
1 Net revenue and receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 365,185 345,418 (19,767)
Operating Transfers In (Out):
Sinking Funds:
1992 Certificates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (299,548) (299,548) 0 )
1993 Certi fi ca tes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (149 914 (149,926) (12)
(44 , (449,474~ ) (12) 1 l
Renewal and Replacement Funds:
Required Contribu tion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (612) (612) 0 Total operating transfers (out). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . (450,074) (450,086) (12)
Budgeted net cash receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (84_1889) (104,668) (19,77_9_)
Additions (Deductions) Required to Reconcile Net Cash Receipts to Net Income (GAAP Basis):
U nbilled reve nue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,200 Principal portion of required Sinking Fund transfers ... ........ 105,829 Excess Sinking Fund transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,275 Net transfers to Renewal and Replacement Fund ................ 612 Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (83,473)
Amortization of debt expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4 3 Ne t (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ R9,348) l l
l i
22 l
. .- ~ ~ _ - -_ - .-- - . - - - - - . - - - . - - . . - -
f SmRnUM OF OPERATING EXPENSES- Schedule 6 EMCTRIC SYSTEM For the Fiscal Years Ended September 30,1996 and 1995 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA
- NEW SMYRNA BEACH, FLORIDA ,
I I
1996 1995 Power Production and Fuel:
Nuclear Power Generation:
Fuel................................................................................ $ 82,4 % 140,703 Operation......................................................................... 469,403 467,886 Mainte na nce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .311,243.... 280,859 Diesel Power Generation: !
Fuel............................................................................... 32,673 33,458 Operation......................................................................... 167,354 191,429 Mai nte nance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .I18,842
.. 198,210 Other Power Supply:
Purchased power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,522,661 13,160,082 System control and load dispatching . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 359 057 356 15~063,,729 1432M,013 1
Transmission t.nd Distribution:
- Operation............................................................................. 1,050,168 1,285,032 !
Mainte nance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .314,340
. 485 1,364,508~ 1,770i,105 37 Customer Accounting:
Operation............................................................................. 508,557 499,242 :
Administrative and General: -
Operation............................................................................ 2,004,719 2,313,512 Mainte nance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .156,480 ..... 185,857 2,16T,I99~ 2,499 369- l Required Payments to the City of New Smyrna Beach ........................... 1,609,406 1,499,615 ,
Deprecia tion and de commissioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,036,669 2,088,556 Total operating e xpe nse s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 22,744,068 23,185J5_9 23
i SCHEDULE OF OPERATING EXPENSES- Schedule 7 WATER SYSTEM For the Fiscal Years Ended September 30,1996 ard 1995 l UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FLORIDA i
1 1
1996 1995 Water Production: 1 Source of Supply: I Operation......................................................................... $ 60,689 64,250 Mainte na nce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,890 17,864 Pumping:
Operation......................................................................... 168,149 149,890 l Mainte na nce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,583 6,609 Water Treatment:
Operation........................................................................ 680,901 661,490 Mainte nance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 079 7 482 9M29F 90885-Transmission and Distribution:
Operation............................................................................. 379,176 361,174 -
Mai nte na nce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,892 33,691 I 413,068- 394,86[
Customer Accounting: ,
Operation............................................................................. 191,521 191,918 1
\
Administrative and General: '
Operation............................................................................ 827,267 874,575 i Mai nte nance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 5 81 541 '
898~7845- 956hT6-Required Payments to the City of New Smyrna Beach ........................... 256,106 246,124 De pr ecia tio n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 715,240 _ , 686,909 Total operating e xpe nses . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3 412,071 3,383,517 24
SCHEDULE OF OPERATING EXPENSES. Schedule 8 I
POLLUTION CONTROL SYSTEM For the Fiscal Years Ended Septembcr 30,1996 and 1995 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FLORIDA 1996 1995 Collection and Treatment System:
Collection and Pumping:
Operation......................................................................... $ 425,050 389,888 -
Mainte nance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,304 51,912 Treatment and Disposal:
- Operr. tion......................................................................... 730,148 738,401 Mai nte nance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I8 "
. 186 27 149 1,207*688- 1,207*35CT Customer Accounting:
Operation............................................................................. I19,908 117,231 Administrative and General:
Operation............................................................................ 667,518 807,317 Mai nte na nce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,825 .. 37 272 716,343- 8T4,,589~
Required Payments to the City of New Smyrna Beach ................... ....... 208,474 198,430 D e p re cia ti o n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 748,096 6 % ,258 Total ope rating e xpe nse s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,000,509 3,063,8_58 l
l l
25 I
i i
i W -
SCHEDULE OF OPERATING EXPENSES- Schedule 9 WATER REUSE SYSTEM For the Fiscal Years Ended September 30,1996 and 1995 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FLORIDA 4
J 1996 1995 Transmission and Distribution System: i Operation.............................................................................S 65,361 59,831 Mainte nance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,185 . . . . . . . . . . . . . 1,285 ,
4 68,546 61,ITE 1 Administrative and General- 1 Operation............................................................................. 4,998 655 i Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0. . . . . . . . 0 1 4,99 0 655~ j Required Payments to the City of New Smyrna Beach ........................... 2,118 1,125 j Depre ciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83,473 69,200
'~
Total ope rating e xpenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ I 159.135 132m09_6 1 i
I i
i I
]
1 f
4 1
.t i
.i i
i 26
-. .- . -_. - - _ = - . - - . - _ .-- -
1 SCHEDULE OFINTEREST EARNINGS Schedule 10 1 For the Fiscal Years Ended September 30,1996 and 1995 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA >
NEW SMYRNA BEACH, FLORIDA 1996 1995 Interest Earnings By Source:
From Investments:
Sinking funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 351,824 349,255 Rene wal and replacement funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205,598 186,683 Customers' deposi ts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61,946 63,059 Other................................................................................ 181,324 140 382 800,692' 739379~ i i
From Assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,953 22,827 Total inte rest earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 824,645 762206_
Interest Earnings By System:
Ele c tri c sy ste m . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 425,570 384,652 i Wa ter sy s te m . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227,388 228,964 Pollution control system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160,314 136,080 Wa ter reuse syste m . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I1,373 12,510 Total inte rest earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 824,645 76220_6 I
s 27 1
. . - . - . . _ - -. - - _ . . _ . - . -- . . . ~ - - _ - .-- _. _-.-.-
l 1-l
' SCHEDUIE OF DEBT SERVICE REQUIREMENTS TO MATURITY Schedule 11 For the Fiscal Year Ended September 30,1996 Page 1 of 4 UTillTIES COMMISSION, CITY OF NEW SMYRNA BEACH, FIDRIDA NEW SMYRNA BEACH, FIDRIDA Utilities System Ravenue Ce:tificates Series 1992 Payment Principal Coupon Total Date Amount Rate Interest Requirements 10/01/ % $195,000.00 4.350 % $426,735.00 $621,735.00 04/01/97 0.00 422,493.75 422,493.75 l 10/01/97 200,000.00 4.550 % 422,493.75 622,493.75 1 04/01/98 0.00 417,943.75 417,943.75 f 10/01/98 215,000.00 4.850 % 417,943.75 632,943.75
! 04/01/99 0.00 412,730.00 412,730.00 l 10/01/99 225,000.00 4.950 % 412,730.00 637,730.00 i
04/01/2000 0.00 407,161.25 407,161.25 10/01/2000 230,000.00 5.100 % 407,161.25 637,161.25 i_ 04/01/2001 0.00 401,2 %.25 401,2 %.25 10/01/2001 245,000.00 5.350 % 401,296.25 646,2 % .25 04/01/2002 0.00 394,742,50 394,742.50 10/01/2002 270,000.00 5.350 % 394,742.50 664,742.50 l 04/01/2003 0.00 387,520.00 387,520.00 l 10/01/2003 280,000.00 5.500 % 387,520.00 667,520.00 l 04/01/2004 0.00 379,820.00 379,820.00 l l
10/01/2004 305,000.00 5.600 % 379,820.00 684,820.00 l 04/01/2005 0.00 371,280.00 371,280.00 '
10/01/2005 320,000.00 5.800 % 371,280.00 691,280.00 04/01/2006 0.00 362,000.00 362,000 00 10/01/2006 340,000.00 5.800 % 362,000.00 702,000.00 04/01/2007 0.00 352,140.00 352,140.00 10/01/2007 360,000.00 5.800 % 352,140.00 712,140.00 04/01/2008 0.00 341,700.00 341,700.00 10/01/2008 385,000.00 6.000 % 341,700.00 726,700.00 04/01/2009 0.00 330,150.00 330,150.00 10/01/2009 405,000.00 6.000 % 330,150.00 735,150.00 M/01/2010 0.00 318,000.00 318,000.00 10/01/2010 440,000.00 6.000 % 318,000.00 758,000.00 04/01/2011 0.00 304,800.00 304,800.00 10/01/2011 3,060,000.00 6.000 % 304,800.00 3,364,800.00 04/01/2012 0.00 213,000.00 213,000.00 10/01/2012 3,445,000.00 6.000 % 213,000.00 3,658,000.00 04/01/2013 0.00 109,650.00 109,650.00 10/01/2013 3,655,000.00 6.000 % 109,650.00 3,764,650.00 04/01/2014 0.00 0.00 0.00 10/01/2014 0.00 0.00 0.00 04/01/2015 0.00 0.00 0.00 10/01/2015 0.00 0.00 0.00 04/01/2016 0.00 0.00 0.00 )
10/01/2016 0.00 0.00 0.00 l 04/01/2017 0.00 0.00 0.00 10/01/2017 0.00 0.00 0.00
, 04/01/2018 0.00 0.00 0.00 l
10/01/2018 0.00 0.00 0.00 04/01/2019 0.00 0.00 0.00 10/01/2019 0.00 0.00 0.00 ,
l
,_,_}l4,575 000.00 1 $12,279,590.00 $26J54,590.00 l
l 1
28 l
i l
1 1
l SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY Schedule 11 !
For the Fiscal Year Ended WWr 30,1996 Page 2 of 4
, ImllTIES COMMISSION, CITY OF NEW SMYRNA BEACH, FIDRIDA NEW SMYRNA BEACH, FIDRIDA Utilities System Refunding Revenue Cestificates Series 1993 Payment Principal Coupon Total ,
Date Amount Rate Interest Requirements ;
10/01/96 $555,000.00 3.500 % $552,586.25 $1,107,586.25 04/01/97 0.00 542,873.75 542,r73.75 ,
10/01/97 575,000.00 3.800 % 542,873.75 1,117,873.75 04/01/98 0.00 531,948.75 531,948.75 ,
10/01/98 595,000.00 4.100 % 531,948.75 1,126,948.75 04/01/99 0.00 519,751.25 519,751.25 1 10/01/99 620,000.00 4.300 % 519,751.25 1,139,751.25 04/01/2000 0.00 506,421.25 506,421.25 10/01/2000 655,000.00 4.500 % 506,421.25 1,161,421.25 04/01/2001 0.00 491,683.75 491,683.75 ;
10/01/2001 680,000.00 4.625 % 491,683.75 1,171,683.75 04/01/2002 0.00 475,958.75 475,958.75 10/01/2002 710,000.00 4.750 % 475,958.75 1,185,958.75 04/01/2003 0.00 459,096.25 459,096.25 10/01/2003 745,000.00 4.800 % 459,096.25 1,204,096.25 04/01/2004 0.00 441,216.25 441,216.25 10/01/2004 775,000.00 5.000 % 441,216.25 1,216,216.25 04/01/2005 0.00 421,841.25 421,841.25 10/01/2005 815,000.00 5.000 % 421,841.25 1,236,841.25 04/01/2006 0.00 401,466.25 401,466.25
- 10/01/2006 860,000.00 5.100 % 401,466.25 1,261,466.25 04/01/2007 0.00 379,536.25 379,536.25 10/01/2007 905,000.00 5.200 % 379,536.25 1,284,536.25 04/01/2008 0.00 356,006.25 356,006.25 10/01/2008 950,000.00 5.250 % 356,006.25 1,306,006.25 04/01/2009 0.00 331,068.75 331,068.75 10/01/2009 1,000,000.00 5.250 % 331,068.75 1,331,068.75 04/01/2010 0.00 304,818.75 304,818.75 3 10/01/2010 1,050,000.00 5.250 % 304,818.75 1,354,818.75 '
04/01/2011 0.00 277,256.25 277,256.25 10/01/2011 1,105,000.00 5.250 % 277,256.25 1,382,256.25 04/01/2012 0.00 248,250.00 248,250.00 10/01/2012 1,170,000.00 5.000 % 248,250.00 1,418,250.00 04/01/2013 0.00 219,000.00 219,000.00 10/01/2013 1,225,000.00 5.000 % 219,000.00 1,444,000.00 04/01/2014 0.00 188,375.00 188,375.00 10/01/2014 1,290,000.00 5.000 % 188,375.00 1,478,375.00 04/01/2015 0.00 156,125.00 156,125.00 10/01/2015 1,350,000.00 5.000 % 156,125.00 1,506,125.00 04/01/2016 0.00 122,375.00 122,375.00 !
10/01/2016 1,160,000.00 5.000 % 122,375.00 1,282,375.00 1 04/01/2017 0.00 93,375.00 93,375.00 '
10/01/2017 1,205,000.00 5.000 % 93,375.00 1,298,375.00 -
04/01/2018 0.00 63,250.00 63,250.00 10/01/2018 1,2 0 ,000.00 5.000 % 63,250.00 1,308,250.00 04/01/2019 0.00 32,125.00 32,125.00 10/01/2019 1,285,000.00 5.000 % 32,125.00 1,317,125.00
$22,5_25,000.00 $15,6.a80 223.75 $3_8J05,223.75 29
i SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY Schedule 11
. For the Fiscal Year Ended September 30,1996 Page 3 of 4 UTIllTIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLDRIDA NEW SMYRNA BEACH, FLORIDA l
4 Utilities System Refunding Revenue Certificates q Series 1996 Payment Principal Coupon Total
- Date Amount Rate Interest Requirements 10/01/ % $465,000.00 4.100 % $412,103.33 $877,103.33 j 04/01/97 465,000.00 4.100 % 608,622.50 1,073,622.50
-! 10/01/97 705,000.00 4.100 % 599,090.00 1,304,090.00 4 04/01/98 715,000.00 4.100 % $84,637.50 1,299,637.50 10/01/98 730,000.00 4.100 % 569,980.00 1,299,980.00 j 04/01/99 745,000.00 4.200 % 555,015.00 1,300,015.00 10/01/99 760.000.00 4.200 % 539,370.00 1,299,370.00 04/01/2000 780,000.00 4.300 % 523,410.00 1,303,410.00 i 10/01/2000 795,000.00 4.300 % 506,640.00 1,301,640.00 04/01/2001 810,000.00 4.400 % 489,547.50 1,299,547.50 10/01/2001 825,000.00 4.400 % 471,727.50 1,2 % ,727.50
! 04/01/2002 845,000.00 4.500 % 453,577.50 1,298,577.50 i 10/01/2002 880,000.00 4.500 % 434,565.00 1,314,565.00 04/01/2003 870,000.00 4.600 % 414,765.00 1,284,765.00 3
10/01/2003 900,000.00 4.600 % 394,755.00 1,294,755.00 j 04/01/2004 925,000.00 4.700 % 374,055.00 1,299,055.00 q 10/01/2004 970,000.00 4.700 % 352,317.50 1,322,317.50 04/01/2005 945,000.00 4.800 % 329,522.50 1,274,522.50
- 10/01/2005 990,000.00 4.800 % 306,842.50 1,2 % ,842.50 04/01/2006 1,015,000.00 4.900 % 283,082.50 1,298,082.50 10/01/2006 1,040,000.00 4.900 % 258,215.00 1,298,215.00 s 04/01/2007 1,065,000.00 5.000 % 232,735.00 1,297,735.00 10/01/2007 1,090,000.00 5.000 % 206,110.00 1,296,110.00
- 04/01r2008 1,120,000.00 5.100 % 178,860.00 1,298,860.00 10/01/2008 1,150,000.00 5.100 % 150,300.00 1,300,300.00 04/01/2009 1,175,000.00 5.200 % 120,975.00 1,295,975.00
. 10/01f2009 1,205,000.00 5.200 % 90,425.00 1,295,425.00
! 04/01/2010 1,240,000.00 5.300 % 59,095.00 1,299,095.00
(
10/01/2010 490,000.00 5.300 % 26,235.00 $16,235.00 04/01/2011 500,000.00 5.300 % 13,250.00 513,250.00 4 10/01/2011 0.00 0.00 0.00
! 04/01/2012 0.00 0.00 0.00 1 10/01/2012 0.00 0.00 0.00 04/01f2013 0.00 0.00 0.00
- 10/01/2013 0.00 0.00 0.00 i 04/01/2014 0.00 0.00 0.00 1 10/01f2014 0.00 0.00 0.00 04/01/2015 0.00 0.00 0.00 10/01/2015 0.00 0.00 0.00 04/01/2016 0.00 0.00 0.00
- 10/01/2016 0.00 0.00 0.00 I 04/01/2017 0.00 0.00 0.00 10/01/2017 0.00 0.00 0.00 l 04/01/2018 0.00 0.00 0.00 1
10/01/2018 0.00 0.00 0.00
- 04/01/2019 0.00 0.00 0.00 10/01/2019 0.00 0.00 0.00
$26,210,000.00 $10,539,825.83 $36J49,825J3_
30
n SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY Schedule 11 j For the Fiscal Year Ended September 30,1996 Pige 4 of 4 '
UTIIJTIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FLORIDA Total Debt Service Requirements l to Maturity '
- A11 Certificates -
Payment Principal Total Date Amount Interest Requirements 10/01/96 $1,215,000.00 $1,391,424.58 $2,606,424.58 04/01/97 465,000.00 1,573,990.00 2,038,990.00 10/01/97 1,480,000.00 1,564,457.50 3,044,457.50 04/01/98 715,000.00 1,534,530.00 2,249,530.00 10/01/98 1,540,000.00 1,519,872.50 3,059,872.50 ;
04/01/99 745,000.00 1,487,4 % .25 2,232,4 % .25 10/01/99 1,605,000.00 1,471,851.25 3,076,851.25 04/01/2000 780,000.00 1,436,992.50 2,216,992.50 10/01/2000 1,680,000.00 1,420,222.50 3,100,222.50 04/01/2001 810,000.00 1,382,527.50 2,192,527.50 10/01/2001 1,750,000.00 1,364,707.50 3,114,707.50 04/01/2002 845,000.00 1,324,278.75 2,169,278.75 10/01/2002 1,860,000.00 1,305,266.25 3,165,266.25 j 04/01/2003 870,000.00 1,261,381.25 2,131,381.25 '
10/01/2003 1,925,000.00 1,241,371.25 3,166,371.25 04/01/2004 925,000.00 1,195,091.25 2,120,091.25 10/01/2004 2,050,000.00 1,173,353.75 3,223,353.75 04/01/2005 945,000.00 1,122,643.75 2,067,643.75 10/01/2005 2,125,000.00 1,099,% 3.75 3,224, % 3.75 04/01/2006 1,015,000.00 1,046,548.75 2,061,548.75 10/01/2006 2,240,000.00 1,021,681.25 3,261,681.25 ;
04/01/2007 1,065,000.00 964,411.25 2,029,411.25 10/01/2007 2,355,000.00 937,786.25 3,292,786.25 04/01/2008 1,120,000.00 876,566.25 1,996,566.25 10/01/2008 2,485,000.00 848,006.25 3,333,006.25 04/01/2009 1,175,000.00 782,193.75 1,957,193.75 10/01/2009 2,610,000.00 751,643.75 3,361,643.75 l 04/01/2010 1,240,000.00 681,913.75 1,921,913.75 j 10/01/2010 1,980,000.00 649,053.75 2,629,053.75 04/01/2011 500,000.00 595,306.25 1,095,306.25 ,
10/01/2011 4,165,000.00 582,056.25 4,747,056.25 04/01/2012 0.00 461,250.00 461,250.00 10/01/2012 4,615,000.00 461,250.00 5,076,250.00 04/01/2013 0.00 328,650.00 328,650.00 10/01/2013 4,880,000.00 328,650.00 5,208,650.00 04/01/2014 0.00 188,375.00 188,375.00 10/01/2014 1,290,000.00 188,37'.00 1,478,375.00 04/01/2015 0.00 156,125.00 156,125.00 10/01/2015 1,350,000.00 156,125.00 1,506,125.00 04/01/2016 0.00 122,375.00 122,375.00 10/01/2016 1,160,000.00 122,375.00 1,282,375.00 04/01/2017 0.00 93,375.00 93,375.00 10/01/2017 1,205,000.00 93,375.00 1,298,375.00 04/01/2018 0.00 63,250.00 63,250.00 10/01/2018 1,245,000.00 63,250.00 1,308,250.00 04/01/2019 0.00 32,125.00 32,125.00 10/01/2019 1,285,000.00 32,125.00 1,317,125.00
$63,310.000.00 $38,49_9,639.58 $101,809,639.58 31
STATISTICAL SECTION Statistical tables diferfromjnancial statements because they usually cover more than onejscalyear end may present non-accounting data. These tables reject social and economic data andpnancial trends of the Utilities Commission, City ofNew Smyrna Beach, Florida.
SCHEDULE OF EXPENSES BY FUNCTION LAST TEN FISCAL YEARS l September 30, UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FIDRIDA NFW SMYRNA BEACH, FIDRIDA Operating Required Transmission, Payments Distribution Administrative to City of Fiscal Total Production and Customer and New Smyrna Year Expenses Expenses Collection Accounting General N eh 1987 $ 24,012,890 11,918,184 2,430,767 614,138 2,856,752 1,301,571 1988 $ 25,687,082 12,681,390 2,657,153 647,001 2,888,994 1,481,102 1989 $ 27,368,501 13,793,020 2,795,429 660,210 3,025,338 1,589,082 1990 $ 29,666,505 14,971,670 2,856,957 721,935 3,541,852 1,781,241 1991 $ 30,650,259 15,718,072 2,989,885 753,860 3,856,593 1,785,889 1992 $ 30,884,894 15,831,890 2,750,121 790,405 3, % 7,885 1,818,257 1993 $ 32,046,964 16,033,390 2,930,222 811,560 4,088,053 1,878,058 1994 $ 31,988,494 15,514,926 2,937,195 811, % 3 4,015,134 1,922,423 1995 $ 33,634,761 15,736,225 3,433,468 808,391 4,300,729 1,945,294 1996 $ 33,068,120 16,004,020 3,053,810 819,986 3,778,385 2,076,104 32
s Table I i
>1 i
Expenses Nonoperating Expenses Interest j State Depreciation Total and Other Total Utilities and Operating Debt Nonoperating Nonoperating
- Tax Deconunissioning Expense Expense Expense Expenses s 243,184 1,929,252 21,293,848 2,583,191 135,851 2,719,042
! 291,187 2,218,323 22,865,150 2,775,470 46,462 2,821,932 308,843 2,322,753 24,494,675 2,737,217 136,609 2,873,826 321,159 2,447,565 26,642,379 2,781,553 242,573 3,024,126 i 0 2,616,987 27,721,286 2,840,798 88,175 2,928,973 4
0 2,788,649 27,947,207 2,876,926 60,761 2,937,687 l
0 2,988,477 28,729,760 3,250,343 66,861 3,317,204
, 0 3,210,370 28,412,011 3,458,792 117,691 3,576,483
- O 3,540,923 29,765,030 3,791,166 78,565 3,869,731 l 0 3,583,478 29,315,783 3,731,690 20,647 3,752,337 l
4 l
t
(
- s 33
l l
I SCHEDULE OF REVENUES F;Y SOURCE
, LAST TEN FISCAL YEARS l September 30, UTILflTES COMMISSION, CITY OF NEW SMYRNA BEACH, FIDRIDA NEW SMYRNA BEACH, FIDRIDA i I
l l 1 i
Operating Revenues l
Pollution Water Total Fiscal Total Electric Water Control Reuse Operating Year Revenues System System System System Revenue j
l l
1987 $ 23,575,256 17,714,974 2,925,916 1,831,044 0 22,471,934 1988 $ 25,269,603 19,46' i f6 3,050,904 1,924,385 0 24,442,765 1989 $ 27,431,708 20,84 .aJ0 3,184,987 2,390,120 0 26,416,607 1990 $ 29,103,071 22,362,293 3,305,107 2,444,813 0 28,112,213 1 1991 $ 30,989,578 24,261,715 3,414,240 2,437,303 0 30,113,258 1992 $ 31,115,463 24,116,658 3,618,061 2,575,895 0 30,310,614 I 1993 $ 32,292,107 24,880,055 3,938,507 2,826,245 6,405 31,651,212 1994 $ 32,222,023 24,352,192 3,923,279 3,165,162 7,650 31,448,283 1995 $ 34,253,351 25,612,207 3,972,005 3,168,544 382,6 % 33,135,452 1996 $ 34,839,856 25,872,665 4,145,975 3,332,543 411,907 33,763,090 1
{
l l
34 l
t i f i
Table II !
r b
l Nonoperating Revenues Totd !
l Interest Other Nonoperating l Earnings income Revenue i
1 665,119 438,103 1,103,322 668,355 158,483 826,838 8
818,148 196,953 1,015,101 801,086 189,772 990,858 -
696,413 179,907 876,320 595,302 209,547 804,849 ,
i 370,830 270,065 640,895 495,971 277,769 773,740 762,206 355,693 1,117,899
+
1,076,766 i 824,645 252,121 l
1 1
4 i
i 1
l I'
1 35
DEMOGRAPIIIC STATISTICS l Table III I LAST TEN FISCAL YEARS September 30, UTillTIES COMMISSION, CITY OF NEW SMYRNA BEACH, FIDRIDA 4 NEW SMYRNA BEACH, FLORIDA 1
New Smyrna County
, Beach's Per County School 1
Estimated Capita Unemployment School Percent 4 Fiscal Population Income Rate Enrollment Attendance Year (1) (2) (3) (4) (4) 1987 15,344 $13,895 4.9 % 4,219 %.0%
1988 15,647 $14,494 4.4% 4,240 94.0 %
J 1989 17,266 $15,266 4.5% 4,445 95.0 %
1990 18,600 $15,648 5.6% 4,488 %.0%
1991 16,543 $16,122 7.3% 4,663 95.0 %
1992 17,084 $16,635 8.3% 4,852 %.0%
- 1993 17,231 $16,706 6.6% 5,009 %.0%
1994 17,989 $17,778 6.4% 5,053 %.0%
1995 17,853 N/A 4.9% 5,348 % 0%
1996 18,239 N/A 4.5 % 4,978 96.0 %
(1) Obtamed from University of Florida, Bureau of Economics arxl Business Research.
(2) Obtained from U.S. Department of Commerce, Bureau of Economic Analysis.
(3) Obtamed from State of Florida, Department of Labor and Employment Security.
(4) Obtained from Volusia County School Board -includes grades K-12, 36
l PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS (4) Tal .JV LAST TEN FISCAL YEARS September 30, UTIIlTIES COMMISSION, CITY OF NEW SMYRNA BEACH, FIDRIDA NEW SMYRNA BEACH, FIDRIDA 1
Savings Dollar and Property Number Value Bank loan Assessed
' of of Deposits Deposits Value Fiscal Permits Construction (2) (2) (3)
Year (1) ($000's) ($000's) ($000's) ($000's) l 2,501 $26,927 $185,428 $306,928 $763,718 f 1987 1 2,246 $30,640 $190,477 $284,244 $834,038 1988 2,502 $23,382 $244,312 $228,568 $894,694 i 1989 2,416 $27,492 $310,746 $285,541 $975,234 1990 2,333 $22,310 $379,110 $300,960 $1,030,656 j 1991 2,391 $18,909 $426,878 $317,964 $1,094,024 1992 2,421 $28,848 $531,036 $331,636 $1,117,205 1 1993 a
1994 2,266 $18,103 $397,165 (5) $303,670 (5) $1,149,931 t
1995 2,177 $33,581 $304,421 (6) $233,412 (6) $1,199,523 1996 2,561 $23,785 $321,772 (6) $228,108 (6) $1,231,515 ,
4 J
(1) Obtained from City of New Smyrna Beach Building Department.
(2) Obtained from inquiry of officials of banks and savings and loan associations.
(3) Obtained from Volusia County Finance Depadment.
(4) The above data is related exclusively to area within the municipal limits of the City of New Smyrna Beach.
(5) Deposit information after 1993 does not include deposits from bank and savings and loan branches which nre located outside the municipal boundaries of the City of New Smyrna Beach. Prior to 1994, branch deposits were based on regional banking / savings and loan center totals which included branches located outside of the City. Prior year data cannot be easily segregated due to the large number of banking changes / mergers that have occured during the last ten years.
(6) Deposit information obtamed from Florida Bankers Association.
37
SCHEDULE OF INSURANCE IN FORCE Tcble V September 30,1996 LTTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FLORIDA Coverage end Policy Policy I wring Company Number Period Details of Coverag.e Liability Limits Comprehe.nsive General Liabiity:
Titan Indemnity Co. 10GLO2420 01/01/96 Combined bodily irpury $3,000,000 with $5,000 01/01/97 and property damage deductible Business Auto:
Titan Indemnity Co. 35BA04479 01/01/96 Liability $1,000,000 bodily irdury and 01/01/97 pmperty combined Comprehensive Actual cash value less
$250 deductible Collision Actual cash value less
$500 deductible No fault Statutory Business Pmperty:
Florida League of Cities / Florida Self- FMIT 400 10/01/95 Buildings and contents $16,838,918 with $10,000 Insurers Fund 09/30/96 deductible (agreed value)
Valuable papers / records $100,000 with $100 deductible Contractors equipment $544,274 with $2,500 deductible Computer equipment $160,000 with $500 deductible Crime:
Florida League of Cities /Aetna 23S101004004 12/01/95 Employee crime $100,000 aggregate, $1,000 Casualty and Surety Co. 12/01/ % deductible Money and securities $60,000 Counterfeit currency (included)
Depositors' forgery $100,000 Boiler and Machinery:
Great Northern insurance Co. 7827-44-32 01/01/ % Breakdowr due to accident $5,000,000 with $10,000 Chubb Gruup Insurance Co. 01/01/97 deductible Flood Insurance:
Capital Assurance Company, Inc. 366-2016745 09/02/ % Building $771,000 09/02/97 Contents $1,000,000 Deductible $10,000 Nuclear Energy Damage:
American Nuclear Insurance and 95P147 10/09/95 Primary property $500 million Mutual Atomic Energy Liability 10/09/ %
Underwriters and Nuclear UX94-015&X9401511/15/95 Excess pmperty $1.400 bdlion Insurance Ltd. I1/15/ % (Excess of $500 million)
(These amounts represent the NF195&MF91 01/01/96 Primary liability $200 milhon total insurance coverage for 01/01/97 Florida Power Corporation's Crystal NS347AMS65 01/01/96 Suppliers and transporters $200 million River nuclear plant, of which the 01/01/97 liability Commission owns a 0.05608 K. N35&M35 01/01/96 Sewndary financial $3C million per occurrence undivided ownership interest) 01/01/97 protection NW103&MW62 01/01/96 Master Workers Torts $200 million aggregate 01/01/97 Public Official / Employee Lianiity:
Corregis Insurance Orgamzations $24-2021317 07/28/ % Liability $1,000,000 Retentions-$10,000 07/28/97 per loss Workers' Compensation:
Florida Municipal Self-insurers' 109 10/01/95 Statutory coverage Statutory Fund 09/30/ % Employer's liability $100,000 Pollution Liability:
Florida Petroleum Liability Inscrunce FPL - 5879089 07/10/ % Liability - fuel spillage $2,000,000 aggregate 07/10/97 $500 deductible 38
TEN LARGEST ELECTRIC CUSTOMERS Table VI 4
September 30,1996 UTIllTIES COMMISSION, CITY OF NEW SMYRNA BEACH, FIDRIDA NEW SMYRNA BEACH, FIDRIDA
)
Kilowatt Hour Sales Revenues Billed i Percent Percent l (kWh) of of (000's) Total Amount Total
- 1. Bert Fish Medical Center........................ 5,636 1.80 % $432,462 1.62 %
l
- 2. Publix Food Store (#2019100).................. 2,979 0.95 % 227,344 0.85 %
- 3. Utilities Commission (Pollution plant)......... 2,709 0.86 % 208,781 0.78 %
- 4. Publix Food Store (#2033500).................. 2,673 0.85 % 205,618 0.77 %
- 5. Reddy Ice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,326 0.74 % 179,338 0.67 %
- 6. Wal-Mart (#01-1079).... ........................ 2,291 0.73 % 178,779 0.67 %
- 7. Food Ijon (#829). .... .... . . . ...... .. . .. .... ...... . 2,141 0.68 % 162,825 0.61 %
- 8. Board of Public Instruction 1 (New Smyrna Beach Middle School).......... 2,107 0.67 % 192,140 0.72 % I
- 9. Board of Public Instruction (New Smyrna Beach High School)............. 2,062 0.66 % 176,238 0.66 %
- 10. K-Mart............................................. 1,944 0.62 % 153,148 0.57 %
Totals......................................... 26,868 8.56 % $2,116,673_ 7.92 %
i 39
1 i
i TEN LARGEST WATER CUSTDMERS Table VII September 30,1996 )
1 UTIIJTIES COMMISSION, CITY OF NEW SMYRNA BEACH, FIDRIDA i NEW SMYRNA BEACH, FIDRIDA :
1 Consumption Revenues Billed Percent Percent Gallons of of (000's) Total Amount Total
- 1. Board of Public Instruction 16,844 1.25 % $35,523 0.85 %
- 2. Federal Housing Authority......................... 16,445 1.22 % 38,466 0.92 %
- 3. Bert Fish Medical Center........................... 15,950 1.18 % 28,042 0.67 %
- 4. Sea Woods Homeowners Association............ 15,078 1.12 % 28,197 0.67 %
- 5. Errol by the Sea Condominium Association.... 12,726 0.94 % 19,700 0.47 %
- 6. The inlet Condominium Associaiton.............. 11,856 0.88 % 17,392 0.42 %
- 7. Oceanview Nursing Home.......................... 9,653 0.72 % 16,709 0.40 %
- 8. Pelican Condominium Association................ 9,615 0.71 % 13,188 0.31 %
- 9. Islander Beach 1odge................................ 8,171 0.61 % 15,931 0.38 % ;
- 10. Quail Hollow Association, Ild. ................... 7,899 0.59 % 10,3 % 0.25 % i Totals............................................ 124,237 9.22 % $223 tS4_4 5.34 %
l l
I 1
i 40 l
t f
I SCIIEDULE OF REVENUE CERTIFICATE COVERAGE Table Vill LAST TEN FISCAL YEARS ,
September 30 )
U TILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FLORIDA ,
l 1996 1995 1994 1993 1992 Gross Revenue Per Certificate Resolution:
Operating revenues .. ..................... ... ... . $ 33,763,090 33,135,452 31,448,283 31,651,212 30,310,614 Interest and other income (excluding construction fund interest earnings) . . .. ... 1,076,766 1,117,b99 773,740 640,895 804,849 Capacity and other fees ........... ... .... ...... 1,383,945 798,090 727,054 1,521,443 761,039 Assessment collections ............ . .... ......... 1,331 3,106 (301) 5,576 13,152 Gross revenue per certificate resolution . .. 36,225,132 35,054,547 32,948,776 33,819,126 _ 31,889,654 Expenses Per Certificate Resolution:
Operaung expenses .... . ... . .. . . . . . . . . . . . . 29,315,783 29,765,030 28,412,011 28,729,760 27,947,207 Less: Depreciation expense .... .................. (3,386,306) (3,337,966) (3,179,382) (2,889,647) (2,675,521)
Required payments to the City ... ... . (2,076,104) (1,945,294) (1,922,423) (1,8781058) (1.818,257)
Expenses per certificate resolution ........... 23,853,373 24,481,770 23,310,206 23,962,055 23,453,429 Income avallable for debt service .. .. ....... $__12,32119_ __10JJ21712_ M61570_ 9tB_52,0]L 8,436_,225_
Annual Debt Service Requiremets:
Principal... .. ..............................$ 1,855,000 1,680,000 1,595,000 1,015,000 1,080,000 Interest (less accrued interest) (1) ............... 3,687,574 3,841,252 3,923,144 3,780,962 3,266_,873_
Annual Obt service requirements . .... . . $ 5,542,574_ _ _ 5,521,252_ 5.118.144_ _ 4,725a62_ 4.346.813_
Coverage ratio (Times) .. .... . . . . . . . . . .
2,23_ __ IJL 1.75_ __2,06_ 1&4_
1991 1990 1989 1988 1987 Gruss Revenue Per Certificate Resolution:
Operating revenues .... . ................ ..... .... $ 30,113,258 28,112,213 26,416,607 24,442,765 22,471,934 Interest and other income (excluding construction fund interest earnings) ...... .. 876,320 990,858 1,008,728 820,417 813,360 Capacity and other fees ..... ...... . . . ........ 756,866 1,001,968 806,571 756,976 1,180,590 Assessment collections .... .. ..... .. ..... ....... 36,239 45,828 69,750 71,284 101,891 Gross revenue per certificate resolution ..... 31,782,683 30,150,867 28,301,656 26,091,442 24,567,775 Expenses Per Certificate Resolution:
Operating expenses .. .. . .. ............. .. .. .. 27,721,286 26,642,379 24,494,675 22,865,150 21,293,848 Lass: Depreciation expense ............. .. (2,495,369) (2,328,833) (2,212,241) (2,119,675) (1,885,382)
Required payments to the City ... . . . (1,785,889) (1,781,241) (1,589,082) (1,481.102) (1,301,571)
Expenses per certificate resolution .......... 23,440,028 222 532,305 20,693,352 19.264,373_ 18,106,895 income available for debt service ... ..... . 5 8,342,655_ 7,618,5_61 7,608,104_ 6,821069_ 6,4h0,880_
Annual Debt Service Requirements:
Principal . . . . . . . . . . . . . . . .. . . . . . . . . . . ... .. .. . .. ..$ 1,020,000 805,000 765,000 725,000 515,000 Interest (less accrued interest) (1) . . .. . . . . 3,550,972 2,553,281 2,597,110 2,637,382 2,660,317 Annual debt scavice requirements .. . . .. $ 4.510,972. 3,33B,281 .____A362,110. 3,362,3.82_ 3,125,M7_
Coverage ratio (Times) .... . . . . . . . . . . . . 1,81 2.22_ 2.26_ 2.01 _ 1 03.
(1) Interest expense for the fiscal years ended September 30,1993,1992, and 1990, is stated net of $613,763, $222,792 and $783,778 respectively, in interest expense which was funded from the proceeds of the issuance of revenue certificates.
41
i HIS1YMtICAL PEAK DEMAND AND ELEC11 TIC SYSTEM NET ENHtGY REQUIREMDrIS, TaldeIX WA1Dt DEMAND, AND SEWAGE MDWS LAST TD4 HSCAL YEAltS Sepwatwr 30, U111I11ES COMMISSION, CTIY OF NEW SMYRNA BEACH, FIDRIDA NEW SMYRNA BEACH, FLORIDA EIICTRIC SYSTEM WATER SYSTEM POLLU110N COfftltOL (WAs i tw ATER) SY5!EM Net Annual Annual Maximum Average Minimum Total Maximum Average Minimum Total r Energy Annual Peak Increase Daily Daily Daily Ar.aual Daily Daily Daily Annual ;
Fiscal Requirements Increase Demand (Decrease) Flow Flow Flow Production Flow Flow Flow Produmon Year (kWh) % (kW) % (MGD) (MGD) (MGD) (MGD) (MGD) tMGD) (MGD) (MGD) 1987 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 1988 256,808,000 - 62,500 -
5.28 3.71 2.48 1,352 2.38 1.87 1.30 682 1989 268,162,000 4.4 72,500 16.0 5.78 3.91 2.49 1,426 4.51 (2) 1.91 1.37 697 1990 282,184,000 5.2 78,200 7.9 6.22 4.00 2.46 1,461 2.93 2.31 1.50 843 i 1991 286,118,000 1.4 75,300 (3.7) 5.13 3.75 2.36 1,366 3.23 2.65 2.29 968 1992 287,167,000 0.4 70,600 (6.2) 6.06 3.75 2.30 1,373 2.91 2.44 2.13 896 1993 292,485,000 1.9 72,100 2.1 5.89 4.02 2.55 1,470 2.98 2.53 2.18 925 1994 301,883,000 3.2 69.900 (3.1) 5.83 3.84 2.12 1,400 3.16 2.68 1.72 979 1995 318,962,000 5.7 88,300 26.3 6.14 4.19 2.62 1,457 3.59 2.88 1.65 1,053 t
1996 331,282,000 3.9 89,200 1.0 6.18 4.30 2.85 1,572 4.43 2.77 2.07 1,016 ,
(1) The above information is provided pursuant to the requirements of Section 2(B) of the Commission's Contmaing Disclosure Certificate issued on August 15, 1996. '
(2) Attributable to excessive rain received in one 24 hour2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> period.
t t
42 I
. . _ - _ . - . .. - - _ . . ._ . .- . . - = _ _ . _ . , - .
i UtillTY RATE SCHEDULE - Table X ELECTRIC SERVICE September 30,1996 UTillTIES COMMISSION, CITY OF NEW SMYRNA BEACH, FIDRIDA NEW SMYRNA BEACH, FIDRIDA Effective: October 1,1996 Electric System Rate Scladule:
Resklential Service - Monthly Rate Customer Charge: Single Phase Service $5.65 Three Phase Service $7.85 Energy Charge: All kWh per month at: $0.07281 per kWh (plus fuel and purchased power cost adjustment)
General Service - Non-Demand - Monthly Rate Customer Charge: Single Phase Service $6.05 Three Phase Service $8.85 Energy Charge: All kWh per month at: $0.07439 per kWh (plus fuel and purchased power cost adjustment)
General Service - Demand - Monthly Rate Customer Charge: $33.50 Demand Charge: All kW of billing demand $5.80 per kW Energy Charge: All kWh per month at: $0.05677 per kWh (plus fuel and purchased power cost adjustment)
Fuel and Purchased Power Cost Adjustment Clause:
The Fuel and Purchased Power Cost Adjustment Clause (FPPCA ') is an integral component of the monthly l charges, and is designed to allow for accurate billing of fluctuating applicable fuel and purchased power costs.
in order to min *unize changes in customer billings, the FPPCAC is developed on a twelve month projected basis, with provision to 'true-up" any over or under recovery of any applicable fuel and purchased power cost in each subsequent twelve month period. A provision is provided in the clause for the FPPCAC to be modified if significant circumstances arise during the twelve month billing cycle. 'Ihe adjustment for the twelve month period ending October 1,1996 is $ per 1,000 kWh.
(1) The above information is provided pursuant to the requirements of Section 2(B) of the Commission's l Continuing Disclosure Certificate which was issued on August 15,1996 in conjunction with the sale of $26,210,000 Utilities Refunding Revenue Certificates, Series 1996.
43 1
1 UTILITY RATE SCHEDULE. Table XI WATER SERVICE
~
September 30,1996 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FLORIDA a
Meter Base Reuse Billing Total 4
Size Facility Subsidy Charge Monthly 1
(Inches) Charge Charge Monthly Billing l Residential Service (2): 5/8" $ 8.85 $ 0.90 $ 1.90 $ 11.65 + Gallonage Charge Single Family 1" 22.15 2.25 1.90 $ 26.30 + Gallonage Charge 1 1/2" 44.25 4.50 1.90 $ 50.65 + Gallonage Charge i 2" 70.80 7.20 1.90 $ 79.90 + Gallonage Charge 3" 141.60 14.40 1.90 $ 157.90 + Gallonage Charge 4" 221.25 22.50 1.90 $ 245.65 + Gallonage Charge
- 6" 442.50 45.00 1.90 $ 489.40 + Gallonage Cnarge
, 8" 708.00 72.00 1.90 $ 781.90 + Gallonage Charge 4
Gallenage Charge /1,000 Gallons Block 1 Block 2 Block 3
$1.05 $1.25 $1.70 Monthly Rate Blocks (Gallons)
Block 1 Block 2 Block 3 All Meter Sizes 0-7000 7001-14000 14001 and over l Base Reuse Billing Total Billing Facility Subsidy Charge Monthly Account Charge Charge Monthly Billing Mulit-Family Each Unit $ 8.85 $ 0.90 $ 0.00 $ 9.75 Master Meter 0.00 0.00 1.90 $ 1.90 + Gallonage Charge @
$1.05 per KG - all usage irrigation and Non-Residential (2): " (Same Minimum and Gallonage Charges as Residential) "
Meter Size Blorkl Block.2 Blockl 5/8" 0 - 7,000 7,001 - 14,000 14,001 and above 1" 0 - 15,000 15,001 - 40,000 40,001 and above 1 1/2" 0 - 30,000 30,001 - 75,000 75,001 and above 2" 0 - 50,000 50,001 - 100,000 100,001 and above 3" 0 -100,000 100,001 - 200,000 200,001 and above 4" 0 -200,000 200,001 - 400,000 400,001 and above 6" 0 -300,000 300,001 - 600,000 600,001 and above 8" 0 -600,000 600,001 - 1,000,000 1,000,001 and above (1) The above information is provided pursuant to the requirements of Section 2(B) of the Commission's Continuing Disclosure Certificate which was issued on August 15,1996 in conjunction with the sale of $26,210,000 Utilities Refunding Revenue Certificates, Series 1996.
(2) A surcharge of twenty-five percent (25%) is added to bills of users outside the City limits.
44
UT113TY RATE SCHEDULE - Table XII i POLLUTION CONTROL AND WATER REUSE SERVICE l September 30,1996 UTIIJTIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FIDRIDA Pollution Control Rate Schedule Residential, (Single-Family) and Non-Residential (2):
Gallonage Meter Base Reuse Billing Charge Total Size Facility Subsidy Charge Per Monthly Charge Charge Monthly KG Billing (Inches) 5/8" $ 9.35 $ 1.05 $ 1.50 $ 1.55 $ 11.90 + Gallonage Charge 1" 23.40 2.65 1.50 1.55 $ 27.55 + Gallonage Charge 11/2" 46.75 5.25 1.50 1.55 $ 53.50 + Gallonage Charge 2" 74.80 8.40 1.50 1.55 $ 84.70 + Gallonage Charge 3" 149.60 16.80 1.50 1.55 $ 167.90 + Gallonage Charge 4" 233.75 26.25 1.50 1.55 $ 261.50 + Gallonage Charge 6" 467.50 $2.50 1.50 1.55 $ $21.50 + Gallonage Charge 8" 748.00 84.00 1.50 1.55 $ 833.50 + Gallonage Charge I
Multi-Family (2)-
Each Unit $ 9.35 1.05 0.00 0.00 $ 10.40 Master Meter 0.00 0.00 1.50 1.55 $ 1.50 + Gallonage Charge ,
Reclaimed Water Rate Schedule:
Meter Minimum Flow Size Monthly Charge (Inches) Charge per KG Primary Tier Rate: Service: 5/8" X 3/4" $ 10.00 N/A l' 25.00 N/A 11/2" 50.00 N/A i
Metered: 2" 0.00 $ 0.10 1 3" 0.00 0.10 )
4" 0.00 0.10 (
6" 0.00 0.10 Secondary Tier Rate: $10.80/ acre / month for metered users whose anticipated capacity exceeds 100,000 gallons per day and which must provide a minimum of three (3) days of wet weather storage for the minimum flow rate of 1,900 gallons / acre / day on an annual average (1) 'Ihe above information is provided pursuant to the requirements of Section 2(B) of the Commission's Continuing Disclosure Certificate which was issued on August 15,1996 in conjunction with the sale of $26,210,000 Utilities Refunding Revenue Certificates, Series 1996.
(2) A surcharge of twenty-five percent (25%) is added to bills of users outside the City limits.
45
-e 1
I I
l 1
I I
I l
l 1
SUPPLEMENTAL AUDIT REPORTS 1
i l
l 1
l
BRENT MILLIKAN & COMPANY, P.A.
CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH LAWS !
AND REGULATIONS BASED ON AN AUDIT OF FINANCIAL STATEMENTS l PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITINGSTANDARDS To the Honorable Chairman and Commissioners Utilities Commission, City of New Smyrna Beach, Florida New Smyrna Beach, Florida We have audited the financial statements of Utilities Commission, City of New Smyma Beach, Florida, as ofand for the year ended September 30,1996, and have issued our report thereon dated November 22,1996.
We conducted our 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 we plan and perform the audit to obtain reasonable assurance about whether the financial l statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to Utilities Commission, City of New Smyrna Beach, Florida, is the responsibility of Utilities Commission, City of New Smyma Beach, Florida's management. As part ofobtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of the Commission's compliance with such provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions.
Accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.
This report is intended for the information of the Utilities Commission, management, and applicable federal and state regulatory bodies. This restriction is not intended to limit the distribution of this report, which is a matter of public record.
0 9 .,
New Smyrna Beach, Florida November 22,1996 ,
i i
i
! 46 l l
20s MAGNOLIA ST.
- NEW SMYRNA BEACll, fL 32168 * (904)4271333
- FAX (904)427-s823 MEMBER; American laatitute of Certified PuNic Accountants and AKT A Private Companien Practre %ethn
BRENT MILLIKAN & COMPANY, P.A.
CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL STRUCTURE RELATED MATTERS NOTED IN A FINANCIAL STATEMENT AUDIT CONDUCTED IN ACCORDANCE WITII GOVERNMENTAUDITINGSTANDARDS i
To the Honorable Chairman and Commissioners Utilities Commission, City of New Smyrna Beach, Florida New Smyrna Beach, Florida i
We have audited the fmancial statements of Utilities Commission, City of New Smyrna Beach, Florida, as ofand for the year ended September 30,1996, and have issued our report thereon dated November 22,1996.
j We conducted our audit in accordance with generally accepted auditing standards and Government AuditingStandants, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
The management of Utilities Commission, City of New Smyrna Beach, Florida, is responsible for establishing and maintaining an internal control structure. In fidfilling 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 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 ofthe stmeture 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 operation of policies and procedures may deteriorate.
s In planning and performing our audit of the financial statements of Utilities Commission, City of New Smyrna Beach, Florida, for the year ended September 30,1996, we obtained an understanding of the internal control stmeture. With respect to the internal control structure, we obtained an un 'erstanding of the design of relevant policies and procedures and whether they have 47 205 MAGNOLI A ST
- NEW SMYRNA BEACH, FL 32168 + (904) 427-1333
- FAX (904) 427-sS23 MEMBE R: Amesan Institute of Certified Public Accountants and AICPA Prhate Companies Practwe Section
To the Honorable Chairman and Commissioners Utilities Commission, City ofNew Smyrna Beach, Florida Page 2 of 2 l
l been placed in operation, and we assessed control risk in order to determine our auditing procedures
{
for the purpose of expressing our opinion on the financial statements and not to provide an opinion i on the internal control stmeture. Accordingly, we do not express such an opinion.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control stmeture that might be material weaknesses under standards established by the American Institute ofCertified Public Accountants. A material weakness is a condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the 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. We noted no matters involving the intemal control structure and its operation that we consider to be a material weakness as defined above.
However, we noted other matters involving the internal control stmeture and its operation that we have reported to the management of Utilities Commission, City of New Smyrna Beach, Florida, in a separate letter dated November 22,1996.
This report is intended for the information of the Utilities Commission, management, and anplicable federal and state regulatory bodies. This restriction is not intended to limit the distribution of this report, which is a matter of public record.
New Smyrna Beach, Florida B~J&M., %
l November 22,1996 i
1 48
1 L
- s. .
BRENT MILLIKAN & COMPANY, P.A.
CERTIFIED PUBLIC ACCOUNTANTS MANAGEMENT COMMENTS To the Honorable Chairman and Commissioners Utilities Commission, City of New Smyrna Beach, Florida New Smyrna Beach, Florida We have audited the financial statements of Utilities Commission, City of New Smyrna Beach, Florida, as ofand for the year ended September 30,1996, and have issued our report thereon dated November 22,1996.
. We conducted our audit in accordance with generally accepted auditing standards and Government AuditingStamfardr, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
In planning and performing our audit of the financial statements of Utilities Commission, City of New Smyrna Beach, Florida, for the year ended September 30,1996, we considered the Commission's intemal control stmeture in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control structure.
As a result, no weaknesses in procedures and controls came to our attention which are required to be reported.
We are submitting for your consideration the accompanying recommendations designed to help Utilities Commission, City ofNew Smyrna Beach, Florida, improve the internal control structure and achieve operational efficiencies (in Exhibit A attached). We have also tested your operations for compliance with applicable laws and are providing additional comments required to be included by reason of the Rules of the Auditor General of the State of Florida. After you have received our comments, we will be pleased to discuss further any questions you may have.
This report is intended for the information of the Utilities Commission, management, and applicable federal and state regulatory bodies. This restriction is not intended to limit the distribution of this report, which is a matter of public record.
h--- _ Y. h., k.
New Smyrna Beach, Florida November 22,1996
)
49 205 MAGNOLIA ST.
- NEW SMYRNA BEACli, fL 32168 * (904) 427-1333 FAX (904) 427-5823 MrMBI R; Amencan Institute of Certified Put*Iic Accountants and AICPA Private (empanies Practice Section l
Exhibit A Management Comments Page 1 of 2 Prior Year Findings and Recommendations The recommendations made in the preceding year were appropriately implemented and/or resolved to our satisfaction.
Current Year Findings and Recommendations l Tb following items are presented for your consideration.
l Gnh Management i
Presently, the Utilities Commission maintains several separate bank accounts which consist l ofrestricted and unrestricted funds. Due to the large number ofindividual accounts and the significant number of interbank transfers among those accounts, we noted that more administrative effbrt is required to control and to account for the various interfund activities.
One of the procedures to maxmuze efliciency and effectiveness in managing cash is to " pool" several accounts together into one account. This " pooling" of accounts can result in a reduced number of physical transactions between accounts and a reduced number of bank statements to be reconciled each month. Also, an immediate benefit could be realized in savings resulting from discounted costs of services furnished by the financialinsitution. We recognize that certain accounts are maintained separately by law or contract but, in our opinion the number of accounts maintained by the Commission could be reduced to a more managable number.
It is our understanding that the Commission has recently solicited proposals for banking senice agreements with area financial institutions and as a result of the responses to date have considered taking such measures to reduce the number of accounts maintained. We believe j this positive outcome will lead to a more efficient and effective cash managment of the i Commission's banking resources.
Debt Service Reserve Alternatives Subsequent to the issuance of the 1996 Series Refunding Revenue Certificates in August, 1996, we discussed with management the concept of purchasing debt service reserve j insurance in the form of a surety bond, with the aim of freeing-up current debt service reserve funds presently set-aside for meeting these obligations pursuant to covenants of the
! outstanding Revenue Certificates. If successfully implemented, the Commission may be able
- to obtain cash funds (possibly in excess of$5 million) which could be used in conjvaction with your present wastewater plant expansion plans, thereby reducing the need to obtain external financing of this amount.
50
Exhibit A
- Management Comments (Continued)
Page 2 of 2
) We understand that the Commission has continued to explore several options to accomplish this objective, many ofwhich are very expensive. We strongly recommend that you continue to pursue your actions to ultimately release these restricted funds so that they can be used in ,
lieu of having to obtain additional external financing.
Florida Department of Banking and Finance Financial Report The financial report required to be filed with the Florida Department of Banking and Finance pursuant to Section 218.32 (1)(b), Florida Statutes, has not yet been completed by the Commission's i oversight unit (City of New Smyrna Beach, Florida, Unit ID#251) at the time of submitting this repon. Upen completion of the financial report, we will compare the report with the financial audit report and state our findings, if any, in an amended or supplemental management letter.
Determination of Financial Emereency - Serlion 218.503(1). F.S Nothing came to our attention which indicated that the Utilities Commission, City of New Smyrna Beach, Florida, is, or during the year ended September 30,1996, was in a state of financial emergency ,
as a consequence of condit ons described in Section 218.503(1), F.S. i 1
l 1
I l
i 51