ML20217Q486
| ML20217Q486 | |
| Person / Time | |
|---|---|
| Site: | Crystal River  |
| Issue date: | 12/31/1996 |
| From: | Hord R, Welsh J KISSIMMEE UTILITY AUTHORITY |
| To: | |
| Shared Package | |
| ML20008A309 | List: |
| References | |
| NUDOCS 9709030147 | |
| Download: ML20217Q486 (117) | |
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,uaout HUA ,
Contents KCA owns,cperates and manages the rnunkipal electrk system esthe the cpermg body d KUA roruts of sa memrxrs. The Mayor d ided t,y tt e Cny of K.wmmee in 1901. Compared to other muniopai!yevned . Krdmmee es a notevoteg Fr Olio menea lhe 5 voting merders are Letter frorn the Authority 2 dettric utet4 K04 e the Ah largest in Flonda KUNs 261 empicyees sene a nominated by the Eoard and rat 6ed Ly the Ory Commesen.
KUA has invested meons of delxs in an inftetra.irture - power pinn Our Year in Review 5 gros.mt.dy 41000 customers in Kis9einee aoj surrourujmg area. l -
KUA ons and operates the iby B Haasei Genert.ing % tam and the Cane ; sute.tationt imes and other fsdites - ta suppxt eronomic gnxvth and ph
- Report of indsAt land Fower Psk and has ownership interests in Orlando Utates Cemnuwon's <reatxin througiout as serwe area hkO furtis H boton Energy Center cod fired Unds 1 & 2 and lafian River The region we serve oNers a funtde twe.s envwenment that 541; orts Accountants 17 (ombuston Mtane Umts A and B, flanda Power Corporaco's (fPO Crys:A l a daerse customer tw in aditen.tfe area ne wrw bo.As a swil doekwpj her tukar Umt flo. 3;and Honda Power & tight Corr i 51 lurie trarnportaten neterk that yeedes e_wy access to dhtent points by h.ghway. Selected Finarxial Data 18 tulear Und tJo 2. KUKs total generating capanty is Ic . a UAM . til. orad.
Notes to the Firurtal Statements 25
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i in recent yeart federal and state initiathe , to deregulate the energy l fac6ty feauras maay new d--m tha wig heip us wne our tvuomers market and intmdure tempetition have afterad the way utilities approach their l ' bettet The e enhancements hdude a drhe up perment de;rshy mcre l businest we have begun taking staps to ensure our success in a more competi- cornment pa4 nq and a more accessible cdhiering areaf tive rmronme rt. .
- in 1995 we made good progres in our strat%y to pos, tion the taisty for . Community Growth l the fut se. Some employae tearns worted to implement recommendations
- Essenmee conteues to empenenre v:brant growth, driven by Gordai made through our employee suggntion program. Other teams tarkkd new l attractive dimate.catural beauts and eeptional cuakty of life. In 1?N we projecit , added LOOO new custemen bnngmg our total custorer bee to pr>t cer
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/dl wo:ted with one goalin nm. ' - to help make KifA more ef'icient, ! O,000.
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more cost effective and rnere customarfocused - .
Looking to the Future j Developing Vision and Mission 4atements Dactricityls KUKs business,and we're good at it. We have sta*,hed a
- During 1996 we adopted Tormi misuon and i.ision statement,one tha e solid record d parsarmance in a rapdy c'sanging and uncertain industry TV l - --
. wi8 guide our team d261 errpkves. . actions a: ready taken, as we3 as these now underway, podien its to contme to 1 Our mis 90n is"to provide reliable l be a lesder in the elecinc utility industry in the years aheal
, and economical ser ices to our custom- - Prepanng our utility has not been without challenges. tti toeg5.and a
( p g y, ers wbde partnering with the commu- - l tabe tene. Bat.the employa spho are the futured KUA are coming owni to
., , ' ,% nity and the e'mrerrnent." Our vision is l understand and embrare our ne-way oPoing businest Todas we're begin-
"to be the riuht utikty, providing the . ning to see the successful emergance of a new KUA.
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- . %C.MM i choenet ArkwtfHordOonwtfdmmfMnsorgAffameylrwmed4pnerdDarwfcWhe45ayer; T% pn y=ar we opened the doors f WOed i >=mes c wemre,* s GearegWagogrq MmycM Amtspr $wepy. , jg g peg (g$tgmg( $gryi(g (ggtg[, yhg *
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. 1 The Right Utility.The Right Servkes.The htight Time."
OurYear its Review industry is ertering an era d unp ecedented compeution. The passage of the Competaive pnces teamwort, and customer satMaction - the g:rniptes l Ltional Energy Po5cy kt of 1992 set the stage for the restructuring and partid that guided us to success in the earty 1990s - are the strengths we are deregijaton cf the electric utility industry.grerJy opamng the indu.try to new buddmg on to stay a preferred energy suppher in a new era of competiton and . Competitive forces in an effort to kwer prires and enharne servues. dereguisten.
- M*ur does this men for KU4? R meaas that retaining large customers or this section highlights actions we took in 1906 to take advantage of our *
. key accounts is more important than evet and more ,
st:engths in the changing ut&ty' industry The photographs and brief stor;es ; chahnging the loss of a few bay accounts can lead to a h h illustrate our ongoing efforts in achieving superior customer satisfxton, l " death spirar'in whrh the fled costs d a utihty snust be IfMD .1 - l paid by a detreasirig number of consumeri dnvir'q g!ces up E h5#^ Celebrating a Decade of Excellence l and %rcing more customers out of our service aret The .@dik N g At the be.jinnmg of f Y 1996 KUA celebrated its tenth armnersary as a creation of KUVs Key kcounts Program is a method of m- 1A - 4 ~ q r wmen,e- osa4 separate authority ft was bad in 1983 that the Oty Comrmssion estabbshed an ' dealing with key customers who have been ilentified as Ad Hoc Commatee to esplete the concept of creatmg a separate ut.! sty authonty . being signifkant to the wrvivd and success of KUA. Ibe Ad Hoc Committee presented its evaluation in 1984 and the City Commis-l The under'ying phdosopty and strategy for Kurs Key - son a;: proved the cha ter in 1985. Ia'er that year the voters of Krssimmee
- kcounts Program is based upon four pnmary assumptons:
accepted the Charter by a 240-1 margin, effective October 1,1985. 1. Customer loy3!!y will not outweigh a sign /icant long-To mart the anniverpary KUA hosted a putlic open house at its Crroil l term price dJfererre. A customer's loyalty is serendary to Street fac4rty on October 4.1995. Over 350 nr tomers enjoyed a catered buffet. l the miomer's met bottom Ene there' ore.the strategy of ente tsment, energy exhibatt and tours of the 'energy contmhenter and KUA is to provide customers mtb specif.c,value added dqtal nuppeg divi ion of our Engineenrig department. Employees gathered services that will contnbute to their kmq term pc/aabikty. It on October 10 to maA the anniversary with a badyard barbecue. . is imperative that we have an in depth know! edge of our ' customers and the pmdurts and/or services that they of'er in New Key Accounts Program ; order to provide va!ue-added servires to these a:storners on - g g 17)6 ruled the aesten of KUts innovative Key Accounts Program. A'ter an ongoing basis. only a year in emtence, the prograrn is already compiling some impressive l 2. KUA may cot be abb to consistently corripete head to head with oder - statres. Among them is the fact that 211 of our targest customers were ! utihues on pice. Competing on price aione is a scif4efeating approach. If all of s, , , . personMy stef by a Key Acounts Program" team'in 1996. And that isjust the margm is lost to gin and retain the custorve,the resources needed to the begenia4 . -service the customer are also lost. KUA beheves that competing on overall IPut rs rhepurpac of KU4's Key krounts /mgrairr? The electric utifity ; service to the customer is rmth enore rea!istg. , 5
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, 1 The customer win recognize real I in the electric utility industry.
- d' y .- .? vabe-added services provided to them 4-J,.c ^ -
by KUA. As we begin to deve!cp
- The Shopping Cart Brigade , ,
*JX. . , 1 J relatiorships with our customers the l KUA and its field service penennei bagan prowi,g a riew service to many T~ m ., m
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,4 - } c 44 customers wi# begm to recognize the l d its large comnwrcia' customers in 1996, The new service is just one d a g -,e
-- - wgg q.g s - r- . . * ;. / value of an ongoing relationship with growing number d vabe-added services bemg developed by KUA
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When KUA representatives met with the generd manags of a locd iaget
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- :f@g .; A KUA has most d the ferassary
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- Eecause KUA vehides routmaly dnve throughout the area. KUA managers 4 aW. ' aaounts are already in phre and *- offered to assist Target by allowing utsty employees to pick up the carts and
.i_ ~ ' _ _ . avaibble atirUA One function dour
- r turr. them as time a! lows The se se was e panded to indude local I Key Anounts Programis toidently l supermarkets and other retail estab!ishments in Kissimmee.
,these resources and develop a format for utilizing them. . The program requires minm:al resources on KUA) part,but provides a" good
;,,, ,,,; " To enhance our Key Accounts Program in 1997 we have teamed with the l oeighbor' service to our custorrert Econormc Development Commission of Mid Florida to provide added series to our customers. These ser*es include financid assktance. employee traimog/ Customer Service Reps Host Spanish Radb Show workforce development,research assistance govemment assistance and other . Rep <esentatives from our Customer Relatibns department began hostmg a tas incentnes.
- senes of mninute radio shows in 1996 on WIN-1080 AM. Kihirnme(s KUA management is currently considering the deveiopment of a MaActing l Spanish only rade statson. The empkyas take cds from in. teres and answer
' department tc, furthef assist with the Key Account Program and other market- l questions ranging from initiaton of electric.serse anc energy conservarian to ing e# orts Staffmg would begie in FY 199& , !' customer fmandal sernes and special utJity programt As KUA emplopes meet with their key anount customert they are building key relationships in the business community. These visits are aho KUA Joins Florida Mtinicipal Power Pool prime opportunites for KUA empbyees to buikt repar and improve relation- .. Effective January 1.1994 KUA joined the florida Muniapal Power Pool ships for the utility. *
. . (IMPP) on a one-year trial bas:s.
It is said that the best defense is often a good offense. ty having a Key l , Kur joined other participants atready in the progrant Gry of tuand. - Anounts Program in place KUA ndi be b'etter positioned for future changes
- Florida Municipd Power Agenry.and the Orlando Ut$ ties Commission.
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- The Right Utility.The Right Services.The Right Time.*
the IMPP a . group of ublities whkh have"paded* their electric generat- l [httricalWorkers00fW1 ing rescutes together to satisfy their combined power needs, By joimog the IMit KUA hopes to redure its overaS cost of powec DisasterDrillDay , , in the IMPP the resources of all members are selected and dispatched to in prepa' ration for the hurrene season and to better [ ' Ls. utnf, the power needs of the pool at the beest cost.1here are two immediate ; prapare employees for the effects d a natural disastet KUA
- held its first ever Disnier Dria Day on Apri 4. ,
benefas from iWP.
- The main c,bjecties of the dr.8 were to test eme gency .
Fust, KUA will have access to the bwest cost power available m the pool , , Second. K3A wiil receive 50% of the savuigs wbkh result when the IMPP uses ewipment, meas.se re<ponse times and evaluate cnmmuni-our gerieration facEties to satisfy its power r*quirements. l cationswithmtheutitty. l - Eve y effor: was made to create a dnaster 1.ke settkto Statewide Outage Leaves Customers in Da rk simulate actual procedures that would be foDowed dunng a 1 hank to the quxk response of our empbyees,11.000 customers of KUA humcane or other naturat daster 1o enhance the authentic-were withcut power eniy 15 rninutes r a ter a largerale outage hit the state on
- ity of the dnli, KUA shut down power to its ahtrative the mornag of March 12. _ l offkes and energy corrtrol cerner to sintiate an outage.
q At just past NO am an electncal disturbance occuned in the central and l During the 8 hour disaster driD, empkws legged western portions of the state. There were some trammi'.Jon overloads on the hundreds of trouble cA. repaired Wraged" power linet D0 kV eiwincal system in the state wikh initiated the opemng of severat , filled sandbags at both power plants, simulated emergency transmrsson circuits This caused a cascading effect on the other B0 W l emplye rescues prepared hundreds of mea!s for the
- empbyees involved in the driu, and coordinated communica-circuts.
Areas effected by the outage included Kissimmee,the Orlando areafrystal f tions with other local emergency agencies Resultsof the w6 gy, R:ver,G aia. Det and. take Wales,It Meade, Avon Pai, and the area north of it.
- c.dl were evaluated by management on AprH 5 and enhancemeats were made ,
- to KUKs disa',ter recovery plan pdor to the start of hurricane season on June 1.
Myers ahich errompasses 30 of,$arasota and the lampa Bay area. The relay protecten program that KUA has in piare dong with the quick
- New Board RoomHonors Attomey response of our line crews pspatchers and engineering persormel helped
. restore power to our customers by 7.18 am. l- KUKs new Board Room was ofMdy named the Erinson Board Room in l 1996,thanks to a prodamatan by the KUA 50eed of D ectors. .
' At its April'24 meetirg the Board ofMal'y designated the board room in EmployeesVote to Keep Union '
KU4 unit employees gathered on March 26 and voted 54-53 to continue f recognition of the over 25 years of service that Edward Brimon has provided to cdlectne bigaining representatxm with the intematenal Brotherhood of
- the Oty of Kissimmee and KUA. A bronze plaque at the entrafke to the room 9 .
eiiir The Right Utility.The Right Servites.The IOght Time."
. , acknow'edges the new rame designation l tmergency pub 6c information system. The system is designed to up0te
. . residents in the event of a hurricane through the use of recorded messages.
Student Att Corstest !* Should a hurricane strike the Cewal fiorida area, widespread damage wi# b an effort to increase public awamiess of energy consertation, EUA force KUA to concentrate on restoring power to aiwal services (hospitals, poke, sponsored an at contest for aL thid founh and f.fth grade students in its . fire fghting facilM etc.). Subsequent repairs wiH be made in descending service area. A jury of ernpioyees selected fmru the entries thirteen ll3) ; ordet based on the number of customers impacted by each repair. artworks that were featured in KUKs 1996 Calends of Energy Conser.ation.
- Throughout this repair phase.particularly dding the first few days.it may Every student who subnutted atwork was honcred with a letter of - be diHicult for customers to reach KUA by telephone 'occause of the espected apprecia: ion, a staad prize, and a copy ci the iua <olor caierniar. The thirteen . high miume of ca,is. The message system wigprovide customers with aa wmners also received a 6fty do#ar U15avings Bond. (alenbrs were distr > l altanate source of tiraefy information on the progress of power restoration
, ! uted free of charge to vea teachers and principais, and to the customers cf KUA. ! throughoutourservicearea.
The recording is activated as sono as a hurricane warning is posted in - t .. -, Dedication of CaneislandWarehouse ; Central fkwida and wi# remin active as long as the community emergency A new warehouseAraming farihty at the Cane Nand Power Park was *. exists. .
, _ _ _ _ - . ~ . _ _ _f ___
dedicated on May 9. The warehouse '; The system is designed to handle as many as 1,500 calls per hour. l CommunitySupport
. parts and equipment used in the
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operation and maictenance of the power l Kt4 knows it takes more than Ju51 talk to estabiish and maintain r pm-
,. g, 5 Pl ant The trainbg faciEty provides sible corporate citizenship. It takes action. KUA has an established track record f ,e
- 3 adequate meetmg space for ongoing . for making a d.fference in the community we serve through a multitude of
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["k employee trainicg f regulac active programs ar'd initiatives that reach out to the comrnunity
;- , , w,3y7 T j fe L The facility was compieted at a ccst ; contribute to a clean heaftby environment .
5 C-'O t.L " i ; $. ? . ' of $540.000 - M less than what was
- Litue league Basebd, junior softhd teams, science fass and educauonal ea --
.. _i..~M ' budgeted for the project.
{ p ograms are just some of the organizations that recene fmancial and spinted
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#;'%, , Emergency Public trlormation l To enhance EUAs competdive positen and to increase pub 6c awareres of lN$dt 3Mg * ,[A ?.3 System ' .* ' the uGry's ongeing commitmen't to the community. the KUA Board of Duettors i ._'. M ,
,s:t-i KUA teamed with the Orladfo adopted a comrpnity organizations / events sponsorship program in 1996.
, Sentinel in 1996 to aeate a free . Under the neis program KUA now accepts sponsonhip requests from
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Th'e Right Utility.The Right Services.The Right Time." commur.'ty and civic onanizaticet Spectships usudy provide EUA wth l ' and martained its (twmtment to the edwation of our youth. Ey prmidog recognita:a in the form of disrAay adete;ng signaga, plaauet ptarardt ard/or free rescurces for educators, we can ensure an efergy Eterate,better educated other means of appropriate reiognron. future wort force. In an enort to enrich the classroom p ograms and increash Kt% supports e# orts imdving education. community > civic cents and studants'eneg awarenest Kim offers a variety of energy < elated educata f
- tesourtes to support teaching obrctrvet
( organitatens, arts. culture. humar9 ties. environment. sa ety. teanh! human - servires, and ecorsmic d7elopment. ; We exwraga educators to make 'un wse of the resources ano programs ~ in 199r>.we contributed $11.780 to the following org3neations- ; o#ered, and we ws be glad to arewer any teacher!admim.trer erstent ,
^
- Our w b site on the intera t features inf ormation on publicatiorg tans, !
Osrecia High School - loder for a Lmfxy'pmgram
- CommunityWion.Inc.- Pityram 5nding l posters,along with upcoming teacher proyams/wtdshopt .y-Gaw-smece** f Kissemmee Youth footb4 teague - Team sponsorshig gnl/ l Thee materia's and services ar= ofered free 4<harga.upon M Qp - - 4 l
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fournarvrit sportsor teacher request,to d whools in Osceola County.
~ - Sundancers Kissimmee twMing Champens - Cop spcvnorshp . Through the enarts of area texhers,with our sesources g,
- 6fWC Kissimmee Anniers - Golffournament spomor *
, the stents wm be better prapa ed to be wrse enegy D' * , _
Krssimmee/Osceola County Chamber of Commerte - Ewn & frway
- consumers and to fare the challenges d our energy future. D " '
Mtts in the Carn sponsorship _ y .
- CDMPACT-fundraivog banquet ,
Fourth cOuty Celebration @wa4 .p 3 Kissimmee Pnl ice Department - Chanry goff tournavynt l fcs the first time.KUA partkipated in the Oty of-ik -
- Osceola County Rotary Oub - Scholarship Eowf sporrsor Np l Kissimmee's Otd fa' honed fourth of July Celebraten at
- foundation for Oscaola Education - Scholarshp golf tmrrumer t idefrort Park
- Neptune Middle School - fiansportata sporeorshp for Nationathriv . During the evant KUA empicyees assembled and Honry Soricry dhtrhited mer 5.000 sports betles and tcd oc 1.200
- Rotary Gub of Kissimmee - Geat florida Shotnout sporsorship ; photographs of chodren and adults dressed up as line
- Oty of Kissimmee - fourth ofk)(elebration for 1997 ; worters - coraplete wth hard hats and utirity umforms.
Osceola Centar for the Arts - Wa Osceola corporare sponsorshp ' l KUNs exhht also featured energy conserution drsplays,
- Kissimmee/Osceola Gnnty Chamber of Commerce- Schofarships for l free preted material on EUA programs and services.and free leadership Osceola Counrigeogram l promotionat it*ms
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KUA has contmued its involvement with the K-11 education rommornty
- KUNs new Gr.tomer Service Center openad for busmess on August 12 # tar 13 e
a l* a $2 mWian renovation d the existing admimstration faciky. The old facky . sesource materiah on tours danroom speakerr.ad audio /whud presentatet was located in downtown Kissanmee at 8 Broadway.
- j
. The new facihty. located on the fet fLxr'of the administrative oMces at l HordSubstationDedicated )
y01 W Carrou Street. features many enhancements that help us serve our l On Se;:tember 18,the KUA Board d Duerters dfda!!y dedicated the j customars better induding a driveip payment depository more converdent
- Richard LHard Substaten. The substation. located just east of the Carrog Street l
~
partr4 anti a more accessitde cashiering area. An open house of tne foaky facity. honors the wort of Mr Hard who was instrumentiin.the creation d the was h'dd on September 18. l Authority and contmues to serve on our Board today . l 1he 8 Broadway facdit/ was sold to the Oty d Kissunmee and now houses
- the fundraising branch dthe Florida . ' N$ve Board Member ,
l
' fY 1906 maied the end of11 ye of serwe to theutility by DtGeorge t% - Governor's Council on Phydcal Fitness f ;g [.y 'A 4 .g ~~
and Sports.
- Gant.
It aho marted the amval of our newest board member - Bdly 1Rafston.
*
- Ot Gart was recognued for Ns service with a framed photo ofr the Boa'ia
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4 ,y ? UnitedWay GoalReached KUA hard har,a lamp handcraft ed by an employee,and a prorlamatsn officia:ly i . <;$' .i. , l . } *1
. Thants to the generosity and l designating the perimeter road at the Cane island Power Part as Gant Aranue. ,
h Nw Jh - c h
'Jl- 1 volunteet efforts of our enployees, EUA l Mr Rahton jcans KUA a'ter a recent retirement from lackheed Martio ,
' c f- .M reached its 1995 Uruted Way campaign . where he serwd 15 'years in senior management. He holds a Bachelor of K '. .
goald59A00. The money raised was a 50ence degree frem icias Tech University and a Master's degree from the
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20% increase over 1994's told and the
- Florida Institute of Technology.
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highest contpbution ever raised by KUA * .
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- KUA-Sponsored Softbal1 Complex I .. employees. ,
$..5 Ny i . a -- Togather the empicyees d KUA Beating out more estabbhed cornplanesthe Oscaela County Softha8 Hordsdstadun'Dedconon - rahed funds that win coctoue to prowde l romple, was recognized in i996 by the mienai softbas Assodation as the
- needed support to our community. Anmely more than 41000 residents of l f.fth busiest compier in the paten.
Osceola County are helped by Umted Way agenne. The compier cest Osceata County $3 imilion to build.some of whicie carbe WUA through its tnpartite agreement with the Coun'y and Ccy The We!corne BackTexhers Expo , agreement anows EUA to share its revenue it.v the enhancement of parts and Oa August 21. KUA co4pansored the annual"Wekome Each teachers Espo" l reneationd programs utilized by KUA customers in the unecorporated areas of for Osceola County educatn The annual event drew over 1.500 elementary. l f4ceola County Total KUA contrtutons in 1996 reached nearty $1 milien. middle and high school teachers and admirstr tors KUA prculed free funds frun this agreement have ahe beest uvd to construct the Cay's , The Right Utility.The Right Services.The Right Time."
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The Right Utility.The Right Services.The Right Time." f. Firnity Aqu.ec Center,the Ngtune Road tske path,and commurey parks in ' l for maintaining an evceGera sakty recerd w6n the poiver puduction divra beth Buenaventura takes and intercession City l The sectrad award recognizes employee safet, le our fagineer% fewve.
. Matenah Management. and Penennet & ksk Management degiments.
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Good Neighbor Program Kurs Good Neighbor Program is a voluntry progrin developed to anist = OtherAwards , ctrtomers in paying thEir KUA utdity bdh dunng times of financid harothip or
- 1996 was another award vweing year for KA We recessed the foaowing personal emergenry.
- recogmtiort through the generosi'y of our m 2fA L deriduals and fendies who Annual Report Contest - Award d Eneilence 1
fred a cmis m 19% were as .isted thwe the Good Neighbor Program. A l American Pubk her Associarm tetd d $3E036 mas contnbuted to tha fund in 19% l Award for PutIuation f weneme - Power feeemployee nevrJette nu4 eee w<o su A3 donatons coHerted through the Good %ghbor I "Ughtmg the my"commurmy servue ad rampaign
- i. ummm wemmm 69,,,,, sie,.,ede,thenum,n5 Couyta l cem co,,c,p,5 ,
4Y * , le local United Way agerty. Golden image Awaid - KUA . *Aorning hute empkw news service.
-
- 1996(alendar of fnergy Consemth
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d OntheWorldWideWeb
- norafa PbMr A-lates Anorurm
~.w l i 1 - tw %i-r J KUA bepn rea t4ng out to its customers in a new way Compreheneve AnmMeamid Report Ausd in 19% - throu9h theWurid W4e Wet Our web she l. (cernmant Tnance O&ers Amnarm
~, features answers to some of the most frequenUy aded l Distinguished Budget Presentate AwFd questions as well as currect job openings and bid contraa . 6ererwent France 05cers Amerm it aho features special hurricane preparedness information . tmaga Awards - KUA Mernic; finute.17M Cakndar d Energy -
and a fist d all Osteola Coun'y emergency shelters. Conservaten,(ane h ad Aner rad A Patre@ with the KUKs address k htto//www state 8 us/kua.
- Emironmet wdeo
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. Citando Area Chaptec rede n' M Reistas Amuta FMEI5afetyAwards *
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KUA was the recipient d two safety an ards issued by The Right Utility.The Right Services- = _'))]
, , , _ y_ . . ~ ~ - ~ - the florida Municipd flectric Assocwtion (TMEA). l The%ghtTirra."
The awrds recognize our achievement d no lost tirne . We wJI contmue to rneet the energy needs d our customers in a safe.
' " * ~ - "' accidents in two ..psrate categories nnha the utdity reliatde.iompetnively prired,and cetomerforused manner. Aiong nah that.
One awmd nas givee to our Power Suppfy derrtment ; we wis continue to stnve to make our part of the worki a better plye. el
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- d Reporto endependerrt Accountants .
Beard of Drectors l* - Kinhmee utsty Authoriiy , W have adted the accompanying balante sheets of the Erssimmee accounting pnrKrias. tuty Authonty as of Saptember 30.19% and 1995,and the reiated statements in accordance with (mamment Audieng SWMs, we have aho hsued a of revenue.ewpenses ard changas in arctumdated reinvested earmnpa-3 rash report dated Nov=mber 27,19% on our corrsideration d the Kissimmee L%ty fbws for the years then ended. Thasa financial swements are the respor Mty A ;honty's internd control structure and a report dated Neverrter 27,19% on of the Authority's manageinent. Our responsibdity is to evpress an opinim on
- its compfme wkh laws and regulatiors.
these fu Ancid staternents based on c 1 au6ts. l* Dur auct was corducted for the purprie of forrmeg an opinen orr the tmc , We conducted our audits in acrordance with generdy acceptad auditing , futancid statements taken as a whole. The int >% and stathticalsectums standards and foerntet Auditing Randanfs issued by the fornptroikr l are presentad for purpows of additwial anaryvs and are not a raquired pat of Generalof the Umted States. Thosa standards reouire that we plan and pa form .
- the be f.nate statements. Such irforrnaten has not been subjected to the the audit to obtain reasonable assurarxe abrut whether the fmandal state- l aud. ting procedures apoli.'d in the audit of the be fmancal statements and.
ments are free of matenal misstatement. An audit indades esamirg on a arrordux;fy, we erpress no epimon on it. test basis, evidence supporting the amounts and disdosures in the financid e stnementt An audit aho inrfudes assessing the accounting principles used ; foopm&1ybrandLLP. and signiftant estanates made by manigement, as wel as ev4uating the
- evenil financid statement presenation. We betieve that our auSts prmide a l Tampa. florida reasonab'e bAis fcr our opinion. l Ncnerbari7,1N6 .
In our opirson, the fmancial statements referrad to above prewnt fairty. in l. al; materid respects the fcanrid position of the Kissimmee Utlkty Authonry as . of Septerur 30,1996 and 1995, and the rasults ofits operations and its cash fews far the years than ended in conformity with ganeraffy acceptad . f7 1
i l OPER ATING HIGHLIGHTS . Sulf MEIR 30, % INCREASE ~ SEPTEMSIR 30, % INCRI ASE . ftfCTRIC OPERAT10N5 . 1996 1995 (DECREA5f) .ElftTRIC OPERAliOv5 1996, 1995 (DfCRfASI) I fin Doliars) . (In Dollars) OPERAf!NG REVENUf 572,193.294 566,847,847 80% l SY51fM PI A5 DEMAND (MW) 218 195 11 8 % SEtfrifD OPERA 11NG [1 PIN 5f 5 101At INERGY 5Atf5 (MWM) 699.484 842J94 67%
$32.234,567 529,249,117
- 453,513 412,695 fuel and Punhased Power 10 7% ResdentW (MWH) 99%
515,178J83 514,669.870 *
- 445,971 430,099 Departmental Operations - 3.5% Commerciauladustrial(MWH) 37%
IN1[Rf 51 PfVENUf5 55,079,920 55,421.949 43% . AVERAGE MONTHtY CUSTOMERS 41,410 40,137 2M INTEREST EXPEN5[ 55,923,162 56,061,061 -23% dentW 33,433
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.- Commerciauladustrial 7,981 7,855 , 1.6%
DEBT SERVICE COVERAGE 2.86 312 -11.2%' l AVE RAGE MONTHtY RES!DENTIAL USAGE (MnH) 1.130 1.061
- fARN:NGS BEFORE CUMULATIVE *
- fIIfCl OfACCOUNTING(HANGE ~58,104,027 59,575,615 -15.4% *
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PAfMIN1510 OTHER GOVERNMENTS 56.497,637 - 56.094,693 6 f,% ; 1m ME DM M - 1,m W 62 M UT!tlif Pt ANT (Net) 5173J55,018 5165,909J70 '41% mm 2,W 2m -303 5119J85,921 5111,681,984 k iOUliv . 73% *
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. NaturalGas 59% 59% 00%
LONG-1[RM DfBT $230,204,245 5234,612.120 -1.9% f Coal 35 % 31 % 12.9%' 10TAL ASSETS 5379J02,848 5374J67J50 1.3% l. tbclear 6% -10%
-40.0%
TOTAL f.f1 Alt SAtf5 569J13,000 564.174,000 ~ 8.6% ; Nf1INTRGY FOR LOAD (MWH) 945,504 897,082 5.4% Residential 536,146.000 532,508.000 11.5 % Net Generation (MWH) '443,202 494.924 ~ -10.5%,
- 405,406 23 M CommerciaUindustrial 533,489,000 531,666,000 58% Po =rPurchases(MWM) 502.302
; $sles for Resale (MWH) 0 (1248) l -
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FIN ANCI AL HIGHLl{sHTS Os Thousands of Del!ars) 1995-96 1994 95 . 1993-94 1991-93
- 1991-92 CITM1WG INCOME 10,369 11,635 9313 7343 9.685
# 5,080 5,422 4,167 OPfRATING REVENUES: l INVISTFINT INCOME 1064 1244 Rnidential 536,246 532,508 532,320 $31,021 529,621
- WCOME EUORE.
Generaf Servicas 10,571 9J40 9,465 8,476 7,891 m1ERE51 CHARGIS - 15.449 17,057 14,080 10,407 12,9 3 . General 5ervkes - Demand 15,217 14,638 15,287 14J04 14,988
- 4,996
- H55 tNTEREST OtARGES GenerN Servkes - Large Demand 4,560 ' 5.174 5,120 4181 Surcharge 1,834 IJ88 1,222 Outdoor th3h ting - 871 800 - 742 669 500 Interdepartmental 5 ales 140 122 114 97 Sales for Resale 0 0 , 0 5 355 l 101AL MEffRED sat [5 69J13 64,174 64,332 60,119 58,414 f
OTHIR REVENUE 5 2.480 1,6'71 1,366 1,144 1,274
, . ETFEG OF A CHANGE IN 101At 0PERAltNG REVINUES . 72,193 66,848 ' 65,698 61,263 59,698
- EMNTE MCirtE
- 9,576 6,014 1,181 5,466
, 8.104 gg7,gg ggg, f WMULAklVE EFTIG N A CHANGE IN 31,359 25,898
. OR THE EHEN Euel rad Furthased Power 32.234 29,249 29.016 Operating and MaintenarKe 15,179 - 14,670 14387 14,489' 14.445 ; , 0 0 0 0 16362 Depreciation and Amortizat on 10J03 8,683 7,509 6,875 6,563 l (UMULAllVE EFFECT OF A CHANGE intergovernmentalTransfers 6,498 6,095 SJ88 5197 5,053 IN ACCOL5 TING FOR CONTRiett1ED Costs to be Recovertd l CAPITAL from Future Revenues ~(2J89) (1484) (3,158) (2,257) (1,946) REINVESTID EADENG5 58.104 59,576 56,014 $1,181 531 [28 101AL OPERA 11NG DFINSES 61,825 55J13 55J85 53,910 50,053
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- TRANSFERS 7,0Dr M $5245 gmy g 7, ,_ WQ' g 60 4Y : iSh ARl
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- 4 KISSIMMEE UTILITY AUTHORITY ;
BALANCE SHEETS ~ l SEPTEMBER 30,1996 AND 1995 A55E15 1906 1095 A5 SETS gentinuedt 19M Icos UTititY F1 ANT - * ;
- OfRER A55E15 Froper'y. plant and eqtepment $234.849378 $208.200.448 less:aMumulated drereciation (75.062.436) (65.0f1MI) . Unamortized bond tests 2.522J71 2,655,070
' 19.7304T ~143.IU.HT
- Onamortized loss on rearquired debt 22J04.057 23.443.(%4 Construction in pr ress 13.484.37? 22,485,468 Inventory-nuclea uel 483J03 183.535 . Other 960J33 131 627 TOTAL Ulitlly PtANI 173J55,018
- 165.p9370 , 59J21J00 TOTAL OTHER ASSEf 5 57191.749 RESTRKTED ASSETS
- Cash and tash equivalents 25J03,106 38.588.902 TOTAL A55E15 5379.707.848 $374.767J50 investments 42,182.928 40354.666
- Interest receivable 357,512 !75,442 TC!At RE51PX1ED A55115 79,519.010 DESIGNATED A55E15 68.243.5 44 f The anompanying notas are ar. integral part of t*e finarvial statements Cash and cash equivalents 8,240.676 10,163.598
- Investments 36.498.037 33.74?.635 Interest rMeivable 373,160 348.155 .
deferred compensation plan assets 2,131.984 1.760,257
- 47.243,857
- TOTAL DE51GNA1ED ASSETS 46.021.645 GIRRENT A55E15 (ash and cash equivalents 6.477J46 7J53.018 .
' investments 7,000.000 4J50.000
- interest receivable 106.139 70.895 .
Aaounts receivable 10J13170 6.331,145 . Less. aliowaxe for doubtful aucunts . (197J83) (178,285) . inventory 6,244378 5,095342
- Employee aovarnes 14)816 114.077 Prepaid crpanses 129.685 34.972 .
Due from other governments 65J76 54.012 ,
- 26.025,576 *
- TOTAL (URRENT A55E15 30.738.717 ,
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KISSIMMEE UTILITY AUTHORITY .; BALANCE SHEETS l-SEPTEMBER 30,1996 AND 1995 * {Continesed) , CAh14Ll?ATION AND LIAElttilES 1996 1995 . CAPifAll?A110N AND tlABlullIS tconfmued) 1996 1995 (APGAll?ATiON
. DESIGNAlfD UAER3Tif5 (PAYALE FROM DESIGNATED AS'5E15)
Anumulated reinvested
- Doe to employees under deferred tempensation plan 2.131.984
- IJ60.257 earnings - Reserved for debt service 5 20.271.150 5 20.271.150
- Other 32C5360 Jp' 755
- Unreserved 99.514J71 ,
91.410J44,
- 101At ACCUMutATED -
l TOTAL DE$iGN4ffD UA6k!T!ES (PArAB1E FROM DESIGNATED ASSETS) - 6 017344 5 359.012 RiitNE5ffD EARNINGS 119J85.921 111.681.894
- 11AE!Lillf5 l
(UMfNT UAEiUTif 5 [PAYAElf Tit 0M CUPENT A55E15) Accounts payable . 3.902.951 3.878.374 LONG-TERM Of 51 Due to other goverereents . 1.190.645 1,078.941 Revenue bonds payable 239.545,000 Accrued compensated absences 8i2.691 739J47 234.905.000 lew unamortized bond discount (43 00.755) (4.93).880) l* Defened cost dpw adjustent 7,552 477JM Inergy conservates test recovery
- 29.303 148,123 lofAt LONG-1ERM DEET 230.204.245 234.612.120
- Other ucrued E4biiities 653A 4 ".970 01HfR LONG-TERM tlABillTIES 120.387 127.848 TOTAL CURRENT LIAbflliif5 l
* (PAYAElf TROM(URRINT ASSETS) 6 636 460 6.740J59 (UR5tf N1 llAElullES (PAYAELE Fit 0M RI51RK1ED A55fi5) ' funent portion of revenue bonds 4.640,000 2.865;000
- 101At UAElfIllES ' 259.916.927 263.035.856 Accrued interest pryable - revenue bonds 6J37.908 6.813J58 N
Advances for (opstructen 1.189,223 197.446 l AW CONMNT UApuT15 NES 10 & 11) Custorner deposits 2.857.218 ^ 2.889.471 l TOTAL fAPITAti?ATION AND UAEilliiES 5379.702.A48 5374.767J50 Accounts payable from construtten funds 14,142 1,180,842
- Other 1,50d.000 *'
- 1.500.000 ,
- The anornpanying notes are an integral part of these furancial statements.
- TMAL CURRfNT tlABIU1!ES l ,
(14 FABLE FROM Rf51RICifD ASSETS) 16.938.491 16.2a6.517
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1 1 KISSIMMEE UTILITY AUTHORITY STATCMENTS OF REVENUE, EXPENSES AND CHAfiGES IN l ACCUM'UI.ATED REINVESTED EARNINGS FOR THE YEARS ENDED SEPTEMBER 30,1996 AND 1995 *
. e 1?96 199; ,
1996 1805 . _ - e i OPERATING REVEtJUf 5 l N0*l0PERAlmG REVENUE (EXPIN5[5] ' l Metered sales 5 69.713,364 5 64.173.826 .l liiterest rewoue 5%e9.920 ' 5.421.949 Otta operating revanues 2.479.930 2.674,011* Interest erpense f5,923.162) - f6.061.061)
' Other (1.421.233) (1.420.077) l
, 101AL OP[RAldG REVINUf5 12.193,294 _66.847.347 .
- l. TOTAL NON0 PIRATING REVINt'E ([1 PIN 5ES) - f2.264 475) JTf,1J3 OP[ RATING f1 PIN 5ES 17J63,243 16M3.962 REl'MSTED i ARN;?G 8.104.027- 9.575.615
' Power generation ^
Purttused power 20.407.110 18J75.611 , ACCtTULATED RDNVEli[D EARN:?lG5 A1 - 1rarc 'mion/Distnbi: tion 1362.109 2.905.367 ElGINNMG OF YEAR 111.68' 894 101.105.279 Administrative and ganeral 1 280.786 6.144.049
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Intergowrnmental transfers 6.497.637 6.094.693 - ACCLTitLATED REifM5'1[D [kRNINGS AT Depredation and amortization . 10.702.958 8.682.955 ItJD Of IT AR 5119.785.971 5111.6FIM4 Cost to be recovered from frure revenue J1J89.151) (3.4f3.5?8'1 f 101A1 OP[RAltNG fIPIr6ES 61.8243 91 55J13.043
. The arren panying notes are an integral part of these finarxialsta'ementt e <
10.368.502 11.634.804
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i i I 1 KISSIMMEE UTILITY AUTHORITY < STATEMENTS OF CASH FLOWS :* ' FOR THE YEARS ENDED SEPTEMBER 30,1996 AND 1995, , 1991 _ 1995 1906 1995 CASH fl0W5 TROM OPERAilNG AGMilf 5 (ASH FIDWSIROM CAP 11AL AND RfLAlfD FINENONG AGMTIES. fperatsg hcome , $10.368.502 5114 34.804 'l Acquisitior, of capital assets and nuclear fuei i17,772.934) (28J32.521) .
- Advances for constructen & advances from co+wnas 4A31500 , 8.868,649 ADM51 VENTS 10 Rf CONGLE RDNVESTfD EARNING 510 NET Pnna. pal paid on reverse bonds 0J65.000) (2.630,000)
CASH FROV!DED BY OPEP ATING AGMilES: .
. Interest paid on revenue bonds (13,553.707) (13.6a4,933}
Deptrciation and amortintion 10JC2.958 8.682.955 . bierest on customer and Gty of Kissimmee deposits (125,415) (113.651) . Cost to be recovered from future revenue (2J89.151) (3,483.594) NET CASH (f5ED TOR (APITAL & AftATED Fl*lANG*lG ACIMTIES 0 9.666.993) (35.695.456)
- CHANGES IN CURR&D A55f15 O!KREASEl/DEfRIASE ,
AND t!AEttillES ONCREA50/DECRIASE: . CASH FLOWS FROM INVESTING AGMilES , Accounts reieivable.Det (2.412.627) (276.674) . Purchase ofinvestment securites - (4 [.250.000) (20.255.0501 trnentory II.138,636) (499 963) . Proceeds from maturities ofinvestmeert securities 40 402. 4 0 33.4d2.400 Ernployee advances (35J39) (31,481) e interest en irrvestments 6.923J34 8.a06J67 Other assets (914.230) ' (1s 043) . . (!.851) I Due frorn other governments (11.364) - - Deferred cost of power adjustment (470.152) 107.581
- NE1!!KREASEl'DICRf3SE)IN CASH AND CASH EQUNALENTS (16.083.9W) -
7.335.402 fnergy conservatica cost recovery (118.820) 146.039 . Aaounts payabie 544.337 CASH AO CASH E00NAlffTS AT (1.142.123) Due to otrer govemments E[ GINNING OF YE AR ._16E5 5m1 49.170.116 111J04 5.632 fustomer deposits (32.253) 57.656 540 411.578 $5e505.518 Other aurued liabihties 1J47p;0 , (1.192.309), . l (ASH AND CASH EQUNALENTS AT END OF YEAR
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CNr designated liabihties . 286.605 536254 - NET (ASH PROVIDED,8Y GPERAllNG AGMilf 5, 13.506.869 16.306 691 W Npanpng notes am an Wegd padW.naMal staniwa
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* , e NOTES TO THE/1N ANCI AL STATEMENTS s . - YE ARS ENDED SEPT'E%IBER 30/1p96 AND 1995 -
e
* ' Commission (TP50 has authority to segulate tie ef-ct ic rate structures of muniopal ut Aties e ,
- 1.
SUMMARY
OF $1G,NIFICANT ACCOUNTING POLICIES
' Ma. It hed that%1e structures ara ricady distinguishable from the total amount of Entity Defirrition revenues which a particular utihty may receie frorn rates,and that distincten has thus far baan The auempanying finamial statements p eserrt the financial poution,results of operaties l arefulfy made 'ry the TP5C.
and cash flows of the Kissimmee Utsty Authority (KUA)in anordante with Gowrnmental g gp ,
.g Aucunting $tandards Coard Statement (GA58) No.14,*1he Financial Reporting inty the l g gg g g g gg g reporting entuy for the KPA includes ali fuxtrons in whkh the EUA exercises finamial l* g g gg aucuotabihty Finandal anountability is defined as appointment of a vot;ng snajcwity of the ; g g 7p$ g g component unit's board,and either a) the ability to impose will by the pnmary governmerit. .
cr b) the pesubility that the component unit will provide a financial benefit to or impose a Operations of the KUA arf subjact to emironmental ragulations by fedaral,este and local financial bur (=n on the primary governmant. As a result of applying the above reporting entity
- authontias and to roning pgulations by local authontes. federal and state standards and criterir., no other temp %ent units exist i'r which the KUA hn any finarxial accountabi!;ty whkh t TWmm W %
would require indusion in the Kurs financial statements. ng Wtive. re ulattiry and judrial aton respecting the standards and pr9tedu'et Ibe aucunting ud reportseg poikies of the KUA conform with the aucunting ruits M a & d presuibed by the GA55. N KUA has elected uncer G458 No. 20 "Arrounting end finanna! w;11 atways remain subjact to the regulations currently in effert or will always be in compliance Reportmg h Proprietary funds and Other Governmental Entities that Use ProprWary fund l* g, Acrounting,* to apply all appikable GASB pronouncements, as well as all appikable Financial An inability 1J fomply with environmental standards or deadIines Could result in redufed Anounting Standards Board (TA5B) Statements and interpretation issued on or before operring levels or ton picte shadown of individual electric ganerstmg umts not in temphame. November 30.1989,evrept for those that conflict with or tor 4radict GASB pronournementi Furtharmore, temp 5ance with environmental staadards or deadlines may substantial:y increwe Ibe KUA was created effective Octob-r 1, Ulr5 by the Gty t,f Emimmee Ordinance #1285 ca;stal and operating testi adepted on february 19.1985 and raidied by the voters on March 26,1935. The KUA Board l rBoard) has 6 membert The Mayor of the Oty of Kinimmer is a rion.votir g Es-Offxio member. l l sosis of Accounting the 5 voring mergbers are comina ed by th The KUA mamtains its aucunts on an anrual basis in aaordance with generdy acept d t Board and ratifeed by the Oty Cornssion. The l Kl>A has endusive jurisdgtson. control and management of the elettric ut6ty. Under the aucuntag princip!cs. The anounts are substantially in conformity wch aneunnng prirwiplas dermition of GA5B No.14. the KUA is property exduded from the Gty of Krnimmee\ fm emial and methods presa2 bed by the federal Energy Regulatory Comrmnion and cher regulatory statements. l autecrit.et Regulation
- Budget Anording to rursting laws of the State ofI)orida,the sin rnembers of the KUA aht as the
"' ' #* #' * ## "9 regulatory authority for the establishment of electric ratet The florida Pubhc Savke
- The KUA follows these proredures in estabirshing the budgat-
< 25 9
i i t The President wd Generd Manager sutmts tc ^*
- card of Dwettors a proposed ; Utsfity Pfant operateg budcat fr r the ensumg fvd yast. N c: peg budget indudas proposed ! Property. plant and egt. ;NeCre stated at cmt =%n pwchmed or corstrurtei c<panddures and the sounes of funds to imarxe them.
DepWen is pmv+d useg th. stragt Bee retSed The esa= rated use8el ties of the
- 2. Durmg several worbbopintuch are open to the puMc.the staf'acd Board of varwvs cleses d deprmat,;e p eperty. plant an % went are as fattees-Duector's d&uss and reme tSe subrmttad budget. A pn%c near.eg rs conducted to ; y w ,,, 33g g,33g obtain ratepayer (tenairts.
- Trasr wse b4 to 50
- 3. The budyt is approvad by the Board d Dwetters and beco=as the havs for ; pg ,,,,,, ;ff ,, 337 ,
cparations for the ensumg fud yeat ' Wd 64m Jh the prewdent and General Managar is authonted to approve a2 tmdgat transfe s and 44 - ; g g g ,,,,ime and W Nag senend dm % dme interdepartmentd transfers are reported to the Board of Duetters monthly. Budget
! %M 2 opere-w WM TW dW dWw m e amendments wNch incr=ase the adopted budget are appe:ned by the Board of Dwertock Both
; ,f g,,,ghd fmm i =mor m is ctsgd to e M Die ens de W or M budyt transfers and budget arcendments were made dunng the fised yeat 0parata evpense ; gp t,g g % ,g g ,,, g g g g,,gd to wWad de budgats lapse at year end. Capiti projects are budgeted for the proj~t IJe rather than for the ;
- cunent fvd y*ar. The unexpended porte of project bud 7t1 do eat lapse kotJ ee corriuses ; N8CI'8'I"'I "
of the project. ,; 4.norteses of cutlear fuel is besed om (M whh is proratad by bei aswm!4y bech e Costs to be R? covered from Future Revenue "$" "'h N Y"A '""5' ' **' W" W" O **'9
, I mc peTNb for residad futre dhpesd rats in ad&uos to estreuted laSor and weste bund the KMs efectnc rates are estaWhed based upon N$t servece and cash operateg ,
renaments 9epredaten and other non cash aems are not conudered in the ret of seawe ! costs , caltulation. Thrs results in timmg dSerene bewean =Sem costs are indudad o' tSe l #"""W ratemAng prmess versus when cmts are in6:nei Costs to be r=rovered f om bture ravapue l* Imemory is stated at weir,%'.ed acage cost-corsat prindpdly of the d*f'cence betwaen deptar.ation and the amorteaten 4 the gain and low on bond re'undir:g and the debt prinopal rarpraments induded a the deermmaten of Ucamortized Sond Costs - rates. The recognition in income of outstandag amouras associed with msts to be eatovered ! Unamurtued bond drounts and issuawe sts ce long term dett aa amorteed over the from future revenue wJ! coiaode with the mdnion of these amounts in rates charg=d to l Me of the issue on a stramht4pe basas The KUA con 9 der =d the e%tve int-est m-thed of customers Th$ r*thod =es adopted in accordance with Statement of feancial Acrountag ! amortang bond d scounts and detaranead that so matend d5erence sawits from the Standards (5f A5) No 71. Accountog for the Ufets of Certain Types of Regulaton~rs erder to contmued use cf the st:aeght be snathocL
~
refect the e<oaomics of regulatc= in the determeaten dreevastad earnegs. 1
. . Unamortizedloss of Reacquired Debt Revenues ,
Uumortued giers or lones os re4ndad debt ce ar icrtead to mcome over the samawang
' 1he KUA accrues base ravanua for services rendered tet unbsid to prov+ a doser W & = deh ww mm Ws M Wwm Ww%ams and matthmg of revenues and espemes.
'" #" N b q 26
, 9 , -,. -m -- . -h.%- -%
- e- - ~~ - - - - - - - -
. <l Reserv" , owed to the Cay of hv'mee no appementaty SaiKO aad 143.4:9 a* Sap en bar RIP %
A perten of actwr,uthed re mested caregs has baan reserwd fa tM highest navnes 8"8 I"5 8"59"tW 1 debt se:wre is any year. Ttus manmen ottw he fisoi year 2018. ,
.The EA conatts reveues ce beW of the Cey # Es.mmea for Oty of Essenice dq I ser*es indudeg water.ww.t. soled waste and scaty taes. !be Cay of kwrmee ahe Advances for Construction ; par'orms proteg sarvires for the EA. The amew:t paid to the C4 ef Esinena, by the KilA
' Itt UA K retenes knds frorn developers for electnc Ene eneesens and imm towers of ! I's stay mwe rnanoes M prinung same and me ewwknaeus Seas e35 the Cane island U.Ws I ami 2. These funds a e recorded as r=dwtens to grms plant tcats aaJ ; appraem6y H13f>.W a-d W1.M.c00 for Wars ended Saptaa bar 30.1n6 aM amort; zed over the Me of related assets. I 1975 8"P""*4 IN 8"**"t '"ad to tM Cay of Esssaamae was ammimmely $200R
~
_ ; and $114.KC at Septembar 30.1906 and I?'5 respettnefy. Deferred Cost of Power Adjustment l The KUA per'eres certae custorier eisted mvices for the C4 of Lssnnmee for w% 6 the Dafarred cost of pown adpstmart raprasents the KUTs cost of penar adpsstm&t rewmaas OI E' # *@"""#i M# # "*"
$aptember 30.1 % and 1905,resettme+y. The amount owed by the Ccy of 0*samaa to t'e colietted but fer whd costs have not been incurred or tests that have bree a'tr ed.but fer
- E* **' ***'me@M and ra4M a SeptW30. M and 1&pW w8w%t of pcmer a#ntment rnews have not teas collectai Energy Conservation Cost' Recovery Cash ared Cash Equivalents E.nergy corservaten cost enevery reproents t' Ess enegy conservation test sewouas Cash and (ad eqwvalerrts intfude short -term. fJghly liquid W that we Wa@ myth bows asunts chasm wW eng.nal aaW tW toilettet but for whd tots have net been intuned or costs that haw been irtw ai but for ;
esd enegy conservaion test ryove, rnanuai h,ve om baen toantat a ***5 " '""*"c=a' d "P**** *n**"$2' 5'a' 5**'d d Ad""a*** *=' I and the carrymg amourt of the KUss deposes with hantiaiircutmes. Pay'ments to the City of Kissinsmee :
- N '" +
Ey charts the KUA is racwed to pa) to the Oty of Kissanmee a nonnum of $614 ps 1.000 KWh. itns payment is treated as an cpeatog and maictenance ewpame in the ; le anedance wsfM5B k 16/kroumog for Cornpanssad Absences!the E4 aumas Stat-cents of Revenna, bpames and Changas in krumulated Reinvested Earnings The totaf
- a Ea%ty for W nc% to W ter pansauas for futw ah w% tenaie amount pid to the Cay of Kissir mee was approvime!y $5.5%D00 and $5.191100 for tM ; (t*ditens are met. The EA has not permah ser is it lega3y saquwad tc, acturmiate years ended September 30. I006 and I??S.mptttiv fr. The amour:t owed to the Oty of
- awpaedaW aWW bantial rec =ates to %ndate this cb59 ation. Atordmg'y the Labuy a
Emennee was approvimatefy 5045.300 and $911.4t'C at Saptember 30.1096 and 1905 fer carrpassmed absum is WW {unst LiaMtes (Payabie frong Current Assa s) e the r*spartivaty
- MN"Pyeg baiante shaats.
The EA collects ravenues from ratepayers who Fve cuts:de the Gty of Kesanmee whd
- Non Cash Activities termponds to the Gty of Kissimmee Utdity Tar. The KUA has agreed so transfar ;
twemy -rne partem of thee rav ws repetted to th* 0ty of Ussiemee f;r res and ; acouiutes atapta nsets af appron-r,ty $rn.000 weaeinduced e accums pavse Raaaaten use. The total amount paid to the Cay of Kissimmee was appreinata+y $453.400 ; as cf September 30. I'?5. krer$ng4 this een cash tramation has he.o ambd from tM and $420J00 fer the years andad September 30,1?% and iso 5.repertney The ameum ; aton pariing Statements of Cash Dows 4 27
I
+
Reclassifications , The ita*t:tas ano remnre dapeutones of pubk funds to prowde coRatera; estimmth at For comparabity purposas certam reclasskates has* been made to the 1995 notes to ieast caual a 50 pertest of he t averaga d-dy b4arge d a!I pub 6c depewts m ewen of depesst the finanoa! stataments to conform enth the 1996 sotes to :% financal statemests. Wuran Aq less om emed by t% W;cd swuntas and W insurwWW assessed by the State Treasurer and pard by other quaiAed pubk depowtores. Risk Management l The wapents of the M tmat cash. tash nn% instmaats and &
- meivable at their re*pertne carryi J amounts ar Sept =mber 30.1a06 and TMS are as foAws.
The KUA is ciposed to various rish of Ms teiated to torts; theft of. damage in and ; destructs of assew errors and omissions;enjunes to empkyes;and natural d6a ters. The KUA l 1996 Ecstncted Dessia'ed Unrestrw1ad Tot 4 has estatinhed a Eo irnurance re>Jve to account for and fiaante its armrmred nsts oficss for
- Cash & Cash the transmnsen and distnbute systam. The reserve bearwe is approvimataty 52.3N.600 and l Egisaients $25.701106 $ 8.240.676 S& 477.746 540.421.528 52.297.600 for the years ended September 30,1996 and 1995, respectivdy The Comance ; kruestments 42.182.928 314c8.037 7.000.000 85.660. % 5 reserve is the KUts bast estimate based spon amiabre informsion and s erreased by interest ; interest R&evabie 357,512 373.160 106.239 836.911 carrnogs The KUA purchases commertial insurme for a3 other nsb of loss.inciusng general ; , TOTALS 568.243.546 545.111.873 511531935 5126 9M 404 -
liabsty. edess sabity. workers t empansaten, property insurance. crtricyee hea!!h. life and ; antdent insurante. Settled claims have not eweeded the corr.mercial coverage insurance is pay
- 1995 of the pnt three fiscal years- *
' Cash & Cash l Equaasants $38.583.902 Sic.16L598 57.751018 5%.505313 Invastments 43.3R%6 3L749MS 4.750.000 78E4.301
- 2. CASH, CASH EQUIVALENTS, INVESTMENTS Interest Acces ble 575.4 2 149.155 70 res 904.412 AND INTEREST ECEIVABLE . . im5 57a5p oro .su 3 1333 sty 37 nj si n 3x ytt F;onda Statutes, the KUA 0:arter and the EUA Inestment Foky authere= the investment *
- The level of crad,t rist assignad to investments are de r med and summarund as fdars.
of eness funds m time deposits or savegs accounts of finanrul inst:tsstes apprtmed by.e * . Category 1 - Insured or regnteed with setunties neti by the KLM or its atmt en the State Tressuret; oblgaterrs of Ustad States (overnment agancies.tertam irntruments gwunteed by the U1 Government tne State Board of Admamstratea (SBA) Fool, bankers
- Csagory 2 - Urmnurad and unragsterei m.th seruntes held by the etwtavartn trust xceptwes. and commerrial paper. Revenue Bond Covenants aho restnet the type and
!* department or agant in the KUrs same.
matur: ties ofinvestments in the rectured trust funds (see riote 10). '
,. g .
Investments feniudsg daferred compansaten plaa assets) are reterded at rest. Deferred *
- dapartmant or age;u but not in the KUts earne_
(cmpernation plaa assets are stated at readet vabe Me Mate 9). AdPraments a*e made to
- test for any prennums or dnrounts, Premiums and descounts are amorteed over the k fe of the mvestments esmg the straght kne method.
toestments must be in the KONs name and represerted by bank trust recepts whwh l , enu
- rate the sarious secuntias hail
- l. ,
a _ _ _ _ _ _ _ , . - _ _ _ _ - - . _ _ . _ - ~ ~ ' ' '
- e 1995 * , Cnegory of Rnh 1996 _ 1995 (000's) . 1 2 3 Tetararkat Vaive Debt sence Reserve SE71.150 SE71.150 U1Gevarement Suwities -
349 - 349 . 349 Setmg fed 11.377.908 ?.678.75F cihntrwwtd Swwces ' 84.381 , 951 85.332 84.3?3 ; Constrwim Fund 22.474.177 27.'e U 51 Totd investmots $700 M y $#5 671 584 779 Capitare=d kr:erest 7.614J33 15.226.it41 Renewal. RaptaceM9t & kwu I 1.500.000 1.500.t00 1995 Advamas fe+ Comtrwten 1.182.2 3 **7ed6 U.S Gova crmant Satunts - 368 - 368 368 ; Cerotrar Depouts 2 727.218 2.8Fe)71 Ullnstrumental Saurities _7J7 54 , 832 _78.486 77.524 Crystai bar Unit #3 Derommeswmag 857.C37 F36.* 2 l Totd lavastmants $77.69 $368 $F12 577 F54 577 P17 10 tat 56r.243.546 5 93neto The baiame in the SEA was apprtmmatefy $39.091.000 ad $%.476.000 at September 30 C'=rtre October 1.1994,the Board of Dmters app' wad a radavytates of a terten d 1996 and 1995 epettiely,and is tdateraEzad in accordarme wth Tkmda Statutes. A2 ! the 1M3 bond pmds (sea Me R ihrs radevenate was e Eau d Waseg Mm ra=5 investments are ddivered to the SENs casted, bak and haid for the SENs arrount art 7deg
. to meer e cmts amated W W Caae W pretMt.
to ther instrwtions. Report *wse agmemants rew:t entrely from a bar4mg services ag amact recunng ; 4. DESIGNATED ASSETS ; overmght pagurthase agreamatrts of servites guarantead by the Umted States (marmaar;t- Certam dessgaations are made in the Tsantid rarerb dweg the Mcd y=ar to Wrtfy a The uke of rapurthee ag=rets hatd a th the KUKs depos! tory bank was apprwm:ataty p,!rts dWad omem W rm h* Mad 2 M b
, $776.000 and $430.000 it Septamber 30.10% red .Jos.rrsontively Rapwchase apaments
- w'< m b a W W Weed m a WW 30.1N6 send i'm5 re held in the area of the KUNs dape9 tory bent. The mastm:m repwrtase agr**mant was mciuded the f6owiry 53.112.0G) and $27,119.000 for 19% and IM5.respectiva+y l ,
At Saptembar 30.1096 and 1905 the tabeg amount of the Kurs dapests wO feaxid
* ~ N IH inst 4utes was app +ericistaty 55$2J00 and ($147,000t respnt;waty.ami the bank balance !
Caed hm W R6'6 ; W.633J.6 was app oemataty $%2.a00 and $347.500,raspa tivafy. AA bart ba;anc*s a e fu2y est: rad in
. Ce hmaam 2.3W WM accordance wo Flor.da 5 stu'e 280, wSkb estabhshed the rnt hiple imaxid imtetstea
- b " " " ""9 2M2 M#I2
. Corn!> pad Cyde Rfactenance 2.080.597 ??'.d55 gg,,,j g
. De'ened Compaesaties 2.131.534 -
1.760JA ud 547.2e te# $45,02M
- 3. RESTRICTED A55ET5' {
~
Resinnem m ru+ i merdame .o bond resoiutm uerxts.o deveo;m er3 .: the rwa muni wt , agmy tmrat ec-=a s we womart w w mordue - e uwa*, Restor, Comwan ma res a,d re;um Restead amit *h tonsist of (ash. cash etavalants enestmants and intarest raraivable at Septembar 30.1**6 aaf - 1995 ir dudad the faow ev 9
l NOTE 5. PROPERTY, PLANT AND EQUIPMENT l 7. PARTICIPATION AND POWER SUPPLY AGREEMENTS Freper+y. plant and equrpment is corr pnsed of the folloeirT The Ku is paty to t*e % p,mine mid pows e em a septer ros
,1996 1995
- 3019E ~
Nelear Producten 5 5.116.568 $ $.01!.592 *
- A. Cane Islarsd Project (the Project!
, steam Producten 68.493.601 54.023.116
- Dunng 1992.the EUA enteved into a Partsripates Agreement with the i b'P4 for the prt Other Production 67,14J160 60.% 3.359 Transmmen Plant 31,400,837 29.726.g33 ; constmcten ownekwp and eperates of the Crs Cane island Proyect. The Prorat is 'ocated
- at Cane Island.14 miles west of the Kurs ewi.teg service temrory en 900 anes of fani Da.tnbuten Plant 44,03s.824 41.522.009 General ~ 18.659.292 17.262.s29 ; The Propt h owned and operated by the KUA. The ag earrest testAed in a 50 pecent .
sesTOTAt" 234.849.378 208.209.443 ,l *="*rsNp in g-nespng faciktes conumcted on tSs sne begmmng ==th the Arst mmt, a
- 40 61** combusten turbine which began torm-rcial eparanoe on Jamsary 1. i?9s. The less: AccumtJated Dap eciaten
~
(7s 062.4 % ) (6sM681) 10TAf. $ 1s9.786 942 $ 14114037 ; second und is appremmately 120 AM and is a combs'ed cycle ernt w'uch began romnaacal - l cperatmo en June 1.1995-
- 6. CONSTRUCTION PRO 3ECT INTEREST COST j 8. Stantos Energy Center Unit No. f ISEC TJ Oa January 27.1993.the Board of Du.< tors einted to restruaure the prtct funds to knd in 1954.the KUA entered into a Partripses Agreamt w:th Orlando Utrtes tapitalized interest en the Kmireme Utaty Authorey Dectric5ystem i. gisce; and ; Commmion f0VO to youwe a 4 #193% (2Cfr#) an6v+d ownerstnp icterest in sK 1 and
- to patripate ia the use of related tom ca and ertemai facaties The KUA aruun d its sher-Resnong Revem.e sands. series 1991. Thrs electx was effectne begmmng with tne nsua-e
. of the nonds ne a eeettive dunns the caostruten penod f the gas twim. , c,.e n.- l d
- src rommon f**tes Mar-d te its owner +p of src 1. The capuny and enegy 4 on june d. im.the KuA issued the acctnc synem i .a.a and Reseang w l* the Kcts ow=-sw icteres ia sK is transmed t'ncugh outuransmma fxates to Bonds sen-s 1993. The porton of the respeine bonds etatog to the fun 6ng of system ,
the Kurs transmission faitities sK l ii part of the stanten f.eg, centet which immiv.d improvements is apprommatefy 77% and 54% for exh seres.respectne4y. to accordanre with ; the dtv4cpmaet of an %,wd, 3.200 ac e plant site located apprommseh 20 m5es sFas No 11.the KUA capdafized approerely $7.680.100 for the yaars ended september 30 l- northeast of the Cay of Kmmm ee. In additico to sK 1.the stanton Ensgv Cemeris capabie '
- of storarnodateg thrae more amts w>th a total capanty a the stentos Energy Centre d 1996 and 1995. The EUA wi# ta:Ptalize interest erpeme en the arsount of approumstaly
$7.616Ao for the year en6ng septembe 30.1997. ; app omme 2000 int Exh pamcpant in the pnint naanced ther shse of the con
- independentfy and so LtdLtv evists for the dabt sennre recp.;nad tw t?* other parxipett The KU4 capitalizes.as part of toestructen tests. interest earmngs ca men es held in the
- Ti e Kcts ben r.t in the Agr-ement is the ado.d nsaabat, orcap,,t, and e,.re, of the construrton fund. accogmrion of this it-rn ,s a contra, ton to the utar, piant is consiste t ,
- feste threugh its parteipeen in future enegy parthased and it does not otherwese with the current arcountmg adopted under sras No. 71 (see note it The Kua capita!ized interest income o' approximatety $1.665.300 aad s1.972.800 in 1936 and 109s. respectw y ; maimain an engxng financial interest or re pwshbry for the pront. starrtre Esergy Cente
, ; began comrr cidal eparatens on July 1.1937. The K!M Uoes not ever6se sign /waht ip%eace
; . or control over operatiry or fiespcial poda es of OLC s
. ~
e O O a M b
-,e------- - - - - - - = = -
E %-WWS
- s
- e r W!
v C Crysraf River t/ nit No.J fCR3) Nmetead for the transfer d approcraately 50% # the Cay of **omesterfs Pe, - f
*~
fati&acent Share of the iMPA SEC 1 and the SEC 2 Pwerts. W EL'A argurad 8 le 1775.the LOA emared irno a Partripatm Ar** ment with florda Power Corporaten
- powar emitiment 9ae in SEC 1.apprommaFy Sa6 N and 8.244?% power ec --
7 4t (f PO to pu chase a .6754% amrmdad intarest in thew 806 set N radaar powered e,ectric *
- b
- share in SEC 2.appMmmaie*y 7 6 W. As a met of the Cty of Memestea(s Pows generating piant dawgnated Crystat Rrvar t5mt Ma3. The EUA is 14*d for its share of _*
- letWmert Share tracsfer Age ==mant d tM fVF4 MC 1 PicPt.KUA was rac sead te 7 epeisbeg and capital tests. Capd4 tosts are itxluded is Prt.perty.F.am and Emapment
- g ma-bune tN Gy of Romasraad fer equity Ands previous,'y paid in the amewm #
- and cperating costs are induded as power generation evpenses.The KUNs bene'it a the '
- apprt=matet 5829.300. Th* emary fund pad is serordad as as ether anet and es ame-tdd e
. ' Agreen. cat is the added avadatey of iapaaty and erergy d the faciktes t' cough its * ,GF
- oc the ramameg Er ed SEC 1. -
'participatec in future energy purd.ases and it daas not otherwne massac an orgneg
- the EUA has a tetd pews estilement share bf 32 5773%.approuwnatey 30 4 FK e
- rswriahntarest cire garsMty for the project 'The KUA does act evartise sagmficant in%ance SEC 2 and a tot 4 powar ertsuamant f. ara of 12.195%. apprtsmae150 6 M in SEC 1.
or teatrol over te, e eparatmg er fmamaf po6 des of IPC. Costs encriated weh tr*w agr=arem are irwindad is pard #ed power espem The trA de-s act e.arnse ugmrwa=t eic .uance w comrw ewe t% cparxeg or rmw pa.wm # D. Indian Rn.rer Cornbarstion Turbm.e ; ,
~ 's1983.the KUA entered uno a Pa tkrpaten Agraanent with OUC to arvare a 111% *
(111 W) endisdad owaarWp interest is tne iniatt Enrer (mbustee furtFne and ; koe of the partripates agr**mants to =Swh the EUA is a party maat the entera d a partiripate in tSe erw of r4,ted etwon and ertarcal facWtes. Id partopaat in the *
, . jrvat reture as apedfed under GA5B Na 14. The EUA lacts eparabonal tectrW cwe the sic t poject feanted their sha e d the cost ind=pendantfypd no sa%ty evnts for the dabt ; CR3 and indian Eet -
serwre required by the other partopantt The KUNs baaef:t is the Ag *=ecat is th* addad ; Acamreg to tSe partwvaren agm each partenpant must provide its ows feaareg availa%ty of tapacity and energy of the facihties thrtnagh its participateen en
- and eadr partspams'sttre of aupmses for eparatens of the piants aseindudad in t+*
futura ecargy putthasas and it does not othewhe vraintain a r cogoing finanda irrte est er ; m +4ppeat.pg enames ofits ens meme s: cant. The amounts of WRV T aat 4 e mpor6Mty fx the project,The EUA dces not evmne 9gnoirant in%ence er fortrol over ; servire for CR3 and indas R, var de not indude the (Mt of temmes and esternal farkes far the opeateg er f.nancial pohties of OLE ; wh.ch partenpants pay oc cages to the eparatog entay. krunulated deprMaten en utsty
* - plant in sarwre es detemned by each parteipaat ba<ed es t$c r deprma:=a inathods and E. Tforida Asunicipal Pourer Agency (FAfPA) ,,m ,m ,,g,g y _
- IAwg is a sameary of tN m pger annata shara of the noneparated pu'cy ewred in 1081.the EUA entered irto a Powar Supply Arwesitee Agreement ith tM fW8L The EUA is to rerer=e arpremimen'y 7 m of pow" frtus the St tune curiear pown praat : p' ant 58 SaFt*=b" W la I?CL the EUA emared into a secced Power Sepply Argurwtm Ag aement weh the 1996 SIC 1 CR3 ladiast8.ner FL*PA The EUA is to retme 16 4537% power em:t) ment apprormatahr til W. in Stameo g pg,,;,3,,,,, gygg,.g $y g ggy inargy Cemn twa 2 (sic a StC 2 t.ag,uomnarde opere n o. une 1. is. : w t,,,o.,,,gau,, r3. atny,,, %,,.,,,
in I??S.the KUA ceteras into a Transfer Agn=mant with the Gy of tde Worth for tSe
- Net F.am in W $14N1 Sim W 5g .
mnsfy d a disa Gy ef taa wutvs vare d the rvPA SrC 2 rmint tw m moned the Gy of La6e Wortvs 2 2441% power entsment 9.are le SEC 2.approwrarafy L6 W ! . AMtenails.is in5 the KUA ema ed into alraesfer Areament mth the Gy of 3r O I
% or e. Dr i995 . l tNay Nnt irt Servke 510.424.596 55 011.592 52.731,082 ; 21MD - G IRED MMt0Lt FArR0ll tew Accum.Depracaten (4.757.25D (2.897.354) (%7.931) l fM Nnt in Servve 515.667.343 52.114.238, 52.163.101 Cmerad Papo8 5 8f59.245 5 7.146J%0 .
l
- Wrmd Cets 5 9J6.935 11 6 % 5 87292 121 %
NOTE 8. PENSIONS Ec pinyar Centre 5 936.935 n 6% 5 87292 tQ the m en picye.s partop.te 6. a muit:se4mpicyar cost star.g netireme-i No for A9 N' AC'"'"'II'58 "'thod was stas:=d for tSase saiu.nen. The sgn/k 't both etap oyaes of the City of Kiswnmae and the KUA (Plas). The Na was estabsshed set l'A8
. nsumptas are-and amended and restated in 1975 to cover substantdy 48 fua time empinym ewept Cay of
*. 1. t#e entapry is cairidated useg the 19?3 Grmg Annety portahty TaNe Osnmmee poike c'fkers and fke0gWrs. Aarned ee ts of the plan are attuariacy corapided ,
1 An interest return of m wrnpanM amnaady-ac2 aiuce snortizaten of pa,1 servke costs over a 30 te 40 year p*riod tegemng Imary 1 ;
. 3. 'A salary maase d 6% per y=x 1974. An actuarai study was ronducted as of knuary 1,1995 and October 1.1M 1he tat 4e below shows relevant data for the Nn as a whole and fev the 03ss portes
. As d Mober 1.1% Wan erMai 7H w a a tota aMm .
. tem damwe 517.301.370. Of these !:=mbm the KSA ervicyaas e 282 wt>ere tho was aalable:
TOTAL PLAN 1996 1995 NfuMad Accruedliab. - 5 5.603.083 l * -
. of th* fAowwg Ndueof Assets $16.061.527 522.871.934 .
tested Senefits 518.673.533 513.623.660 l wnvested Be'ne'its 5 1.611.539 - 5 1.6;1.082 l memal Costs 5 2.013.111 5 i.932.302 Iboud er piovaes memng beWes 7
% CE % DF 101AE , 101At .
KUA'S PORTION 1996 PLAN 1995 FLAT! ! wm.ested m Nested Genehts ~ 5 6347.613 46 0% 5 5.*M339 43 4 % . 711 Emvested Genefits - 5 793.902 - 491 % 5 791,1 % ?8 F% l - Wrmd Costs 5 936.935 46.5 % 5 872.692
+
45.2 % ! of trad-ted serwce. Elepbdcy for early retnement is attamed a ace 55 ar:d compleuos of to
! years of cr=d,ted servre. The No aho prevides fer disabdtry :=twement and a d*ah beWA.
- l TM Kurs cepenbuten is tahdmed by tv actuary based on membershigi There are l r o errployee coat,butmas made to the Nn.The adm rnstrane tmt of the Nn is decated
! proportmnatefy betwean tN City of Kissannee se the EUA and pauf wparsety As of Octater l 1.1995 the pewon beWs cbbgrace was tairutated as foGewt
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, ; R* fund.cg and revenue bends outstanding at Saptembs 30.1906 and 1905 conust of th=
The Ki'A adt at d times estabtsh, fix.prescnbe and tof.ett rates and chegas for the ; fraowcq send and te at bondr serwes and fac@es furnshed by the Decrx System whxh.togather mth other income.are ; , ,
- TetAt Or#AAL reasonably espacted to yield ammai Net kevenues in each Tmd Year at least equi to 125% ,
of the bond service requirement in the Sond Year mhich ends cne day a'ter such Fised Year. DE5CRiFTK)N rATURITY AE0tmi 1996 1*as D farfy raderaption: ; Dectric Resemea 10/01/12 1 66.020.000 5 57.520.000 $ 19.610.000 The bend ordmarxe prowies for earty redampton cf cutstaading tonds escapt origed , ; Bonds Seres 1937 hsee discount bonds, at cd ratn scyog f om 100% to 102% of the instruments ~face
- 440%-680% -
value dapendent upon the cd date. Oreged issue discount bonds may be radaemad earfy An;10n , at td rates of 80% to 100% of the face value dependent upon the ca3 date. g 7 g E inwstment restrict'ens- Refundeg Revanve (1) Funds of the Sinking fund. Bond Amortirate fund.Reme Fund and Renaud, ;, Reptrecent & Improwmant Fund are rnirad to be coatmuously secured in the same ; - manner as municipal deposits of funds are required to be sme=d by t% tam of the State ; ,3 of Florvia,and * (2) P.temes ce deposit in the Sinking Fund and the Eond Amorteaten fund thd be kv~ 4";5 & IMU8 I IWM Id5 M M ids M M W #9 *** 8 - invasted only in dmt obf*gstens of or obisatwas on m%ch the prmcipal and interest se guaraateed by the Urnted Stat'es of Amerga and which do not parmd redempten 308hSene5 W3
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prior to matunty at the opte of the KWL Momes on daposit is the Revenue Fund. 3 90% - Sm Resarse Fund and Renewal ReplaceNent & Ly wa..: Tund may be irrvasted as da 300 described above as well as in the focowirg obhgations rating as Tor battar from
- 5 21.165.000 21.110.000 21.165.000 Refundmg Revenue 10/01/17 Mood (s Investors Servve, lac,tarek time deposits rapresented by certdicates of deprit * *
- Eondt Senas I?93 and bankers acceptancet repurchase agreemerts, commercial paper ehrh has the * -
A 320% - 530% , inghest investment grade rating and shares of investment compames which iciest .4n; ion , onntipdp in Unned States government securces. + .
- 1ctd Amount Outstanding 23tS45.000 242.410.000 test Geent Portoe toeg Tarm Datt _ f4.640 000) f2.865.000)
- 5 734 a05 000 $ 739 ses coe Total ,
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~
e Mmimum ~ ; provisien for payment of wth assessment to be made over trme as necessary to brmt the - Empnate Annual ; payment in any one year to no more than 540 r%%on per incidect. The KUts share of these
- anenments would be approvimate!y $1.702.000 ard $270,000.mpettivety for CR3 and Data _ Commitment Odando Utihtes Commisson (OUC) ~ 2004 $ 1.055.400 ; $1,925.000 and $305,000.mpactreety for St.tucie.
Florida Power Corporation (fPC) 1998 1.451.100 ; The EUA has recorded a Rabaty at Septemter 30.1996 and 19?5 of appronunateiy FMPA (5L tucie.5EC 1,5EC 2 Projacts) NFli 9.633,900 * $131,500 a7d $133.600.respectruefy.of =brh appronimaiety $120.400 and $127.800, florida 6as Trarnmnson ffGT) NONt 3.531.500 ; respecto.e4 is longwerm and'a relatad deferred charge for its estimated portion of the rosts for 10 tat . 5 15.671.000 ; the deromrmssiomog and decontaminat;oo of the Unked States Department of Energy sudear
; feal enrirhment fxiiitie's as providad for by the Natenal Energ, Policy Act of 1902 (Energy Act)
Seseral of tne contraa are flexMe and anow the EUA to contract more capac.ty for a short ; for its .6754*E share of Crystaf her #3. The Energy Act states,among other things.the utthtees time if demand increases more sharply than at:tiopated.or if the Kurs generateg resources ;_ wth mriear reactors =4 torrmbute an aggraga e total of $150 mdes annua 2y. bned upon an become unavailable In such an event.the mimmum annual commitment would innease in
- anenment, for a penod of Gfteen years,up to a total of $215 b4on (in 1892 dc4ars), for such proports to the mcreased capacity purchnei The charges pad to OUC and fPC are' recorded ; decommissoning and decontamication tosts The Energy Act aho provides that these tests ara as pur(hased power whde charges paid to FGT are recorded as power generaten evpens s. ; a"necenary aad reasonable current cost of fuel and shan be fdy recoverable in rmes in aa lhe K0A owns a porten of florida Power Corporation's nuclear power plant at Crystal bet. ; jurrsdetions in tM same manner as other fuel costC The EUA intends to rerover these defened fionda. Ihn plant is scheduled to be decommessoned beg;emng in the year 2015 and en6 rag ; test th.ough the 'ests of Power Atustmaet (Lw 2022 The KUA will be Sable for approntmately 5861.000 in decommissoning rests in 1989 ; On %9 ember 30.1903, a gas turbine was in the process of bemg delivered to the KUts dean in June 1988. the Nudear Regulatory Commission (NRC) raq:nred utthties to provide ; Caae h!and site wh*n it was struck by an Amtrak Trara. At the t;me of the arcidant,dein' ery had finarrial anurante that decommruionmg funds would be su*' cent and available when reded ; not baen made to the KUA cor had the umt been anepted by the KUA tine to the gas turbine for ERC requered decomminiorring actmi es. On July 12.19W the KUA and the FFPA entered ; had passed to the KUA. however Geeeral ficctnc retained the mk d ioss artil the turbme was into an agraement whereby the fMPA would act as agent for the EUA and certam other CR3
- anepted by the EUA. On May 16.1995.the moona:Transpcrtatmo Safety Boafd determined
. ~
parropants to coor6nate the admtarstration of a trust funi Contributes to this trust fund are ; that the prchable cause of the accdent was the fadure of the transport to.npany to notefy the not avadhle to the KUA for any other purpose exept the decommhsiomng of CRL The KUts ; ra.iroad K5X) in advance of its intent to cron the radroad tre and to ensure through CSX tf at carrsag %hace in tNs Trust at September 30.19% and 1995 includmg interest croings was .* it was safe to do sa. On hvember 21.1916 a jury in U S. fed-ral Court fouad that EUA was not approumatefy 5957,000 and 5887.000.respecuvely futu e contritutes mili be made to this a mponsible for the arodent. A contrartud e abrhty is stin outstariding where EUA could be held trust anount as needed beed oc updated cost estimates and trust fund earnings.
- respons:ble, howavet this matter is on appeal and managamcat feels the outcome will be As a rewit of their ownershrp interest in CR3 and St Lucie purchase power agreement the .
- favorable to KUA. In the opinion of ma:tagament.the resclute of any further lawsuits ud act KUA n subject so the Prd Anderson Act abich was ensted to prowde finandal protection for ; have a matenal effect on the fmancial position of the KUA.
the pubhc in the event of a nudear power plant acodent. The first byer of financid protection ;' wa* the purchase of $200 mdhon of public habatty irnurante from pools of commercid insurers.
- The serand byar of finaxial protection is prow!ded under an edustry retrospective pay' ment plan. Under that plan, owners are subject to an anenment of $252 mitten per incident wah *
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I l g M FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' RWPORTS CITY OF ALACHUA ALACHUA, FLORIDA - SEPTEMBER 30,1996 4 E E 1-
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_ . _ - ~- - - . _ _ _ _ _ _ . . - FINANCIAL STA'!EMENTS AND INDEPENDENT AUDITORS' REPORTS CITY OF ALACHUA ALACHUA, FLORIDA ! SEPTEMBER 30,1996 - CONTENTS j Page Independent Auditors' Rerest 12 General Purpw , Flamar4=1 Statenents ! Combined Balance Sheet All Fund Types ard i= Account Groups 3 '
- Combined Statement of Revenues, Expenditures and Changes in Fund Balances . All Governmental Fund Types S .
Combined Statement of Revenues Expenditures and Changes in Fund Balances '- Budget and , Actual - General and Debt Service Funds 6 ' Combined Statement of Revenues Expenses . and Changes in Retained Earnings All i Proprietary Fund T) pes 7 Combined Statement of Cash Flows ' All Proprietary Fund Types '8-9 Notes to Financial Statements 10 37 - Accompanying Information Combining and Individual- ! Fund Statements General Fmut Balance Sheets . 38. Statement of Revenues Budget and Actual 39-40 ; Statemen! of Expenditures - Budget and Actua! 41-42 i Proprietary Funds
- Combining Balance Sheet 43 44
. Combining Statement of Revenues, Expenses and Changes in Retained Earnings ~ 45 Special Revenue Funds ,
Combining Balance Sheet . _ 46-4 Combining Statement of Revenues, Expenditures and , Caanges in Fund Balances 47
# - s - ,, w , --, -.mwe,m-,e s --
; FINANCIAL STATEMEN11B ,
i, AND
! INDEPENDENT AUDITORS' REPORTS -
- 4 CITY OF ALACHUA !
; ALACHUA, FLORIDA )
- SEPTEMBER 30,1996 i I
3 ,
- CON'IENTS
( (Conclauled) Page Additional Elements of Report Pnpared in Accordance With Govemment Auditing Standaads, Issued By the Comptrolier' General of the United Statest the Provisions of the Omcc ,. of Management and Budget (OMB) Circular A 128 and the - V Rules of the Auditor Geneml of the State of Florida Independent Auditors' Report on Schedule of Federal I-and State Ilmancial Assistance 48
.l Schedule of Federal'and State Financial Assistance 49 I..
h Independent Audhors' Report on Internal Control :
, Structure Based on an Audit of General Purpose '
- . Financial Statements Perfonned in Accanlance
- Whk Government Auditing Standards 50-52 ,
~ Independent Auditon' Report 'on Compliance Based osa - ,
an Audh of General Pur Kee Financial Statements i t Perfonned in Accordance With Govemment Auditing Standards $3 55
. Independent Audhors' Report on the Internal Control Structum - '
- Used in Administering Federal Financial Assistance
. Programs 56-39' Independent Audhors' Report on Compliance With the General :
- - Regulewnents Applicable to Federal Financial Assistance Programs . 60-61
- , independent Audhors' Report on Compliance With Specific Requirements Appliedle to Ncamajor Federal Financial
, Assistance Program Transactions 62-63 Independent Auditon' Report on Compliance With Requirunents . ' Applicable to State Grants and Aids Appropriations 64 :
- Management 14ter 65-69' 1
' Management's Response 70 I
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Purvis GrayR Coiirpany i
~ INDEPENDENT AUDITORS' REPORT Honorable Mayor and City Commission
. City of Alachua
. Alachua, Florida We have audited the accompanying general purpose financial statements of the City of Alachua, Florida as of September 30,1996, and for the year then ended, as lieted in the table of contents. These general L pureose financial statements are the responsibility of the City of Alachua, Florida's management.' Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally l accepted auditing standards; Government Auditing Standards, issued by the Comptroller Oeneral of the United States; and the provisions of Office of Management and Budget (OMB) Circular A 128, Audits of State and Local Governments. - Those standards and OMB Circular A 128 require that we plan and perfonn the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement, An audit includes examining, on a test basis, evidence supporting the . amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, :s wcu es waluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our. opinion. We did not obtain sufficient evidential matter to determine if property, plant and equipment recorded in
- the proprietary fund types is fairly presented at cost or estimated historical cost, due to insufficient detail within the Cityof Alachua,~ Florida's property records, in our opinion, except for the effects of such adjustments, if any, as might have been determined to be
.necessary had_we been able to detennine the propriety of amounts recorded as propeny, plant and equipment in the proprietary fund types, the general purpose financial statements referred to above present fairly, in all material respects,.the financial position of the City of Alachua, Florida as of
. September 30,1996, and the results of its operations and the cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. l 1
' CettlAed Public Accountants P.0, Box 23999
- 222 N.E.1st Street
- Gainesville, Florida 32602 * (352)'378 2461 Laurel Ridge ProfessionalCenter
- 2347 S.E 17th Street
- OCala, Florida 34471
- t352) 732 3872
; 1413 Piedrnont Drive, East, Suite 2
- Tallahassee, Florida 32312 3 (904) 385-0554
- FAX (904) 385 9801 MEMelt10F AMitCAN AND FlotIDAIN5tt?Vit5Of Cit 1WND PUbuC ACCOUNTANil Mtuett CW AMttsCAN INSTITUtt Of Cittrit0 PV9UC ACCOUNTANT 5 ParVAft COMPANIll AND $ t C. PRACTCt llCTIONS 1
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- Monorable Mayor and City Commission , .
E , LCity of Alachua - i L. Alachua, Florida - l, I-
- I i
INDEPENDENT AUDI1DRS' REPORT .
- (Concludedy 1 !
r I-L- Our audit.was made for the purpose of forming an opinion on the general purpose financial statenwnts ! taken as a whole. The combining and Individual fund statements listed in the table of contents are d preented for purposes of additional analysis and are not a required part of the general purpose financial ;
~
- statements of the City of Alachua, Florida. Such Information has.been subjected to the auditing (procedures applied in the audit of the gerwral purpose financial statements and, in our opinion, except q for the effect of such adjustments, if any, related to the matter dixussed in the third paragraph, is fairly .
o , ; p. resented in all material respects in relation to the general purpose financial statements taken as a whole.- >! in accordance with Gowrnment NuditIng Standards, we have also issued a repost dated February 14, l
'1997, on our consideration of the City of Alachua, Florida's internal control structure and a report dated 1 l
. February 14,1997,~ on hs compliance with laws aul regulations. -
t 3 iy
-February 14, 1997 um # /
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- - GENERAL. PURPOSE FINANCIAL STATEMENTS .
~
These basic statements provide a summary overview of the financial position of all funds and account . Lgroups as well as the operating results of all funds'and cash flows of the proprietary fund types.L They - Lalso serve es an introduction to and summary of the 'more detailed statements included in the - < accompanying information section. M i w n 4 1
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COMEDhtD BALANCE SW ' ' x
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y s < - ALL FUND TYPES AND ACCOUNT GROUFS SEFIDaME 30,1996 _. CITY OF AIACHUA, F14RIDA
~
~
Ge W Accommt Groups Fumd Types Proprimemry FW Gemarat General Teamh Specist Duk - ' F und Types . Fmed Type _ Fined " . IAmt-T.rus - _ ' (Ksamamenus Outy) Generet , amue ser A seenrprise Agamey Assens new a9ss ms Assets ]" Cash and Cash Equwaleses ;$- 4.887 $ . 51.063 $ - 63.189 $ - I18.028 S' - 397.167 3 -274.022 4 Invesensenes 105.500 92.922 125.047 $ , 98.197 421.666 ' 439,461 f.ecervables(Net of Allowances , For UncoIIectibles . 1 m indhcased): Tames and SpW Assessments - 21.489 ' -22.320 43.899 42.722 ~i Accouses (542.24@ 51.441 559.641 611.082 ' 714.958_ AccruedInneres and l Penahes 0 264 Oeer Receivables , . 3.510 17.557 _ 21,067 27.491 Due Fren: Odier Funds 325.490 525.490 273.022
- . Due Freen Odier Goversunemas 91.560 160.3f7 .
251.957 104.045 s ~ Invensory et Utility Supplies 206.808 206.808 196.674 Prepom! Expenses 70.453 162.985 233.438 108.053' Umbined Revenue 253.071- 253.tF71 210.2M
. Restricted Assets: .
Cash and Cash Equivalents 715.91I 715.911 434.721 -1 Invesenenes I.779.039 I.779.039 1.954.404 Accrued Inneres: 5.480 5.480 7.057-Property. Plant and Egmpeneur ' *l Cost less Accumulmeed ,;
. Deprecasesom Fcr Propreesary Fund Types: Cost For General
. Fir-d Assets Account Group 11.886.967 3.124.274 15.011.241 14.656.012
~
- Useseostued Bond Issue Cors 1 434.554 434.554 455.499 -
Annount Avadable kr Retaresnest of General
. Imag-Term Debt 5 1%.III 156.111 150.88Z Asmount to be Provided For Retrement of General teng-Term Debt I.436.265 1.4 % .265 1.516.280
.Tetil Aseres ;$ 348.840 $ 211.460 5 1 % .111 5- -16.972.898- 5 98.197- $ 3.124.274 . $ I.592.376 - $ 22.50s.1 % $ 21.%5.794 it
!, see accornpanying notes. 3
. .- . _ . .. .___,.m_. ._
COMBINED BALANCE SmtET ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30,1996 CITY OF ALACHUA, FIDRIDA ' (c = '- ":") Goverimmental Accumme Grumps - Fund Types Proprietary Fhtsciary General General - Teesis Specist Debt Fund Types - . Fund Type Flued Imag-Taran N O nly) Generat nevenue Service Esserprise Agemey ' Ammets Dett 1996- 1995 IJabelties and Fund Equity IJanenses Accounts Payable '$'. 239.660 $ 113.501 5 550.159 5 903.320 $ 632.228 Other Accrued Empemes 22.975 22.975 27.456 Due so Osber Funds 16.795 31.744 476.951 ' 525.490 273.022-Payable From Resencned Assets: Accrued Inserest 454.173 454.173 462.31r7 Current Pbrtson of Bonds Payabie 251.001 251.001 235.001 Cussemer Deposits 137.205 137.205 125.910 11.499 15.152 226.952 ' 253.603 245.931 Deferred Revenues and Credits 86.981 5 10.757 ,7.738 14.361 Nose Payable- Other Nose Payable- Arcadio 1.095.000 '1.095.000 1.130.000
- Note Payable - Sales Tax 370.849 370.849 308 ) o9 Note Payable - First Nauenni Bank 54.298 54.'A 10.516 Revenue Bonds Payable 14.125.410 14.125.410 14.365.730 55.302 61.472 116,774 104.227 Accrued Compensaned Absences S 98.197 98,197 117.787 Deferred Compensanon Total thasedes 267.954 800.397 1 ., J If, 387.109 98.197 5 0 1.592.376 18.506.033 18.193.045 Fund Equity Contributed Capital * .147.939 2.147.939 1.365.485 Invesanent in General Fined Assets 3.124.274 3.124.274 3.023.120 Retamed Earness-Reserved For Debt Service and Corningeneses 605.248 605.248 604.312
.(2.167.398) (2.167.398) (2.520.653)
Unreserved Fund Balances 60.249 156.111 216.360 2C3.813 Reserved 4.887 4.887 5.160 . Designated 51.063 66.813 186.512 Undesignated 15.750 Total Fund Equity 80.886 51.063 156.111 5815.789 0 3.124.274 0 3.995.123 3.372.74* TotalIJabilities and Fund Equity 3 348.840 $ 211.460 5 156.111 1 16.972.898 $ 98.197 5 3.124.274 3 1.592.376 $ 22.504.156 3 21.565.794
~See wwing notes.
4
P - . . .. .
- 4 T'
COMBINED STATEMENT OF REVENUES, EXPENDI1URES AND l CHANGES IN NUND BALANCES A J IL GOVEItNMENTAL NUND TYPES FOR 'I1EE YEAR ENDED SEPTEMEB2 30,19M l i CITY OF ALACHUA, FLORIDA W Fund Types Teesk . Specht - DeGut sas==== andsma Omby)
- General Revenue Service 1996 3995 -
Revenues
$ 1.368.108 5 0 $ ~ -- 0 $ 1.368.108 $ Lt.288.*13 TaxesL 84,908 52.662 ,
- 84.908' 0 0-Licenses and Perants 608.371 184.503 0- 792.874 ' 495.666 Insergovernmental 133.503- 0 0 133.503 ' .133.062 Charges For Services 64.576 0- 0 64.576 94.541 Fines and Forfemures Interest and Miscellaneous ~41393 ' l.262 5311 47.966 68.648
- 2.300,159 185.765 5,311 2.491.935 + 2.163.492
~ Total Revemmes
~^
F. a-(. Oltrent 'O O 479.505 386.549 p General Cevernament 479.505 I.447.397 0 '. 0 I.447.397 1.341.133 Public Safety 35.602 0 0 35.602 45.325 Physacal Enviroasnent 360.469 184.503 0: 544.972 303.701
-T e 147.171 0 0 147.171 184.012 Pari:.ind Recreatson 0- 'O 127.tr26 127.826 121.495 Dets Serrsce
~^
(2.470.144) (184.503) (127.826) (2.782.473) (2.382.215) (Tegel F , Q. (Deficiency) Estess of Revenues
-^
(169.285) 1.262 (122.515) (290.538) (238.723) (Under) Over F 7.- o 10tleer F8=== rimy Sources (Uses) 178.113 0 "127.744 ' 305.857 '297.399 Transfers In (127.744) 0 0 (127.744) (119.286) Transfers Out O O O 0- 393.000 Proceeds Front New Dels 0 0- 0 0 70.516 Proceeds From Capaallease 0 0- 0 0 (382.520) Payments on Current Refundmig , 0
'O O O^ (8.947) .
Bond Issue Costs 50.369 0. 127.744 178.113 230.162 Total Other Fa- cing Sources (Ums) - (Deficiency) Encess of Revenues and Other~~ Financing Sources (Under) Over E ,-- o (2I8.916) 1.262 5.229 (112.425) 31.439 and OtIner Finsecing Uses l'9,802 49.801 150.1t82 - 400.485 369.006 Fund ama==res, Regimming of Year
- Fund Balmaces, End of Year ' $- 80.886 $ 51.063 $ 156.111 $ 288.000 $ 400.485
- See accompan}% not.s.
5
= _ . .
.~ , . _._ . ... _ . . .
. , . . 4 . _ .
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^
CON STAN OF N N AM CHANGES IN FUND BALANCES'- BUDGET AND ACWAL .
~
. GENERAL AND DEBT SERVICE FUNDS .
'J FOR TIE YEAR ENDED N 41996 - '
CTIY OF ALACHUA, FLORIDA Genermi Fund Debt Servlee Famed '
' ~
Variamee Varemmer ' Teambs
, - Feverskee Feverehte h'Omly) -
med8et Acessi consk.ormhao modset Anemmi (uman.nembas a996 - asse
- - Revemmes
~ d Taaes- 3 ^ ' t.296.6 3 $ 1.368.108- $ 71.438 3'- ~0 $ 0 1- 0 $ 1.368.188 L 3 - 1.277.2e6 Licenses and Perames 78.000 - 84.908 ' - ' 6.908 0 0- .0 84.908 - 82.682 Imeergoveranaental 741.427 608.371 "(133.056)' 0 :0 0- C08.371: '495.606 - Charges For Services 127.300 133.503 6.203 0' 0 0 133.5t!3 133.052-
, Fuses and Forfemures 180.000 ' 64.5M - 0 15.424) 0 e' ,
'0 64.5M 98.541 laserest and MisceBaneous 54.010 - 41.303 0 2.617) 0 5.311 5311- 46.104 67.350 a
- . Teemi Revemmes 2.477.407 2.300.859 ' O M.548) 0 - -
5.311 5,31I 2JO6.Il0 2.151.057 :I b yg , s Current
- General Government 395.830 479.505 (83.675) 0. '0- -
0 479.505 " 306.549-4 Public Safety ~ 1.566.884 'I.447.397- t19.487 . 0 0 0 1.447.397 ~ 1.341.133 - l Physical Envirosenest 48J03 .' 35.602 , 12.701- 0 0 0. 35.602 45.325 7 Transportation 323.773 .360.469 (36.696) 0 l0- 0 360.409 - 303.701 Parks and Recreation 135.636 ~ I47.171 ' 0 1.535) - 0: 'O O '147.171 ' 184.012 Debt Service 0 0 0 113.1 % 127.826' (9.650) 127.826 121.495 (TeemiF , - , - (2.410.426) (2.470.144)- 282 Ol8.lM) 0 27.826) - (9.650) (2.597.97ED (2J82.215) (DeGelency) d Revemmes 'j
- (Under) E , . .. 6.981 - 0 69.285) 0 76.266) 018.1M) ~ 022.515) (4J39) (291.300) (231.158)
- OmerPhimmeims s .neces(u ) .
Transfers In 178.113 178.113 0 118.1M : 127.744 9.568 305.857 297.399 i
- TransfersOut - . 018.1%) ? (127.744) - (9.568) 0 0 0 (127.744) (119.236)-
Proceeds Frora Refunding Debt 0 0- 0' 0 0~ 0 0 393. WOO Proceeds Froso Capital 1 Asses 0. 0 0 0 0 0 0 70.516 Paynients en Current Refundsmg 0 0 0' O O 0 0' -(382.520) Bond Issue Costs : 0 _ -0 0 0 0 0 0 (8.967* Total Otiner Flammesmg Seerees j' (Uses) 59.937 - 50369 (9.568) I18.1 % 127.744 9.568 178.113 - 250.162
- (Dediciemey) Encess d Revemmes j : and Osimer Fa===rier Searces
?- - (Under) Over Empemesures med . 4 Oeiner FI=== ring Uses - .$ 66.913 (118.916) $' 0 85.834) $i 0 5.229 $ .5.229 (113.687) 19.004 j Feed Eminaces, Begimming d Year, 199.802 150.882. 350.684 -331.e40 Famd Balantes, End d Year ' >
$ 80.886 3 156.111 - -5 236.9F7 3 350.604-6.
i ( .
COMBINED STATEMENT OF REVENUES, EXPENSES AND L CIIANGES IN RETAINED EARNINGS ! ALL PROPRIETARY FUND TYPES FOR TIIE YEAR ENDED SEPTEMBER 30,1996 l CITY OF ALACIIUA, FLORIDA Total Proprietary (Memorandum Fund Ty pes Only) Enterprise 1995 Operating Revenues 5 6,198,(M2 ~ $ 5,644,363 ! Operating Expenses Power Production Expense 3,252,270 2,849,207 , Treatment __ 244,601 229,952 ! Distribution and Collection 322,632 295,267 I - Warehousing 56,740 59,128 l Customer Accounts 184,111 163,186' l General and Administrative 267,196 242,996 l Depreciation 480,691 463,018 i Taxes 120,840 112.575-(Total Operating Expenses) (4,929,081) (4,415.329)
= Operating Income 1,268.961 1,229,034 Nonoperating Revenue (Expenses)
Special Assessments 0 134,977 Connection Charges 92,981 80,356 Interest income 129,148 143,696 Interest on Long Term Debt (938,202) (949,750) Amortization of Bond Issue Costs (20,944) (20,945) Miscells.neous Income 360 363 E Total Nonoperating Revenue (Expenses) (736,657) (611.303) Income Before Operating Transfers 532,304 617,731 (Operating Transfers Out) (178,113) '(178,113) Net Income 354,191 439,618 Retained Eamings (Deficit), Beginning of Year (1,916,341) (2,355,959) Retained Eamings (Dencit), End of Year $ (1,562,150) $ (1,916,341) See accompanying notes. 7
=---
1 I
,. . COMBINED STATEMENT OF CASH FLOWS l ALL PROPRIETARY FUND TYPES FOR TIIE YEAR ENDED SEPTEMBER 30,1996 CITY OF ALACHUA, FLORIDA Total Proprietary (Memorandum Fumi Types Only)
Enterpdse 1995 Cash Flows From Operating Activkies Operating income. $ 1,268,%1 $ 1,229,034
' Adjustments to Reconcile Operating income to Net Cash Provided By Operating Activities: l Depreciation of Plant. 480.691 463,018
' Amortization of Deconunissioning Costs 0 3,586 Provision For Losses on Accounts Receivable 22.955 _18,100 Change in Current Assets - (Increase) Decrease: ,
Accounts Receivable and Unbilled Revenue 49,140 118,509 Due From Other Funds (16,795) 0 inventory (Net of Material Salvaged From Retirements of $9,371) (763) 14,744 Prepaid Power Costs - (126,959) 26,914 Other Prepaid Expenses 1,530 (3,433) , Change in Current Liabilities . Increase (Decrease): Accounts Payable and Other Accrued Expenses 283.109 (279,298) Customer Deposits 11,295 6,505 : Net Cash Provided By Operating Activities 1,973,164 1,$97,679 Cash llows From Noncapital Financing Activities Connection Charges - 92,981 80,356 Miscellaneous income 360- 363 Operating Transfers In From Other Funds 0 10,200 Operating Transfers Out to Other Funds (178.113) (188,313)' Net Cash (Used In) Noncapital Financing Activities (84,772) (91,nM) Cash Flows From Capital and Related Financing Activities Extension and Replacement of Plant - Net of Contributions Received in Aid of Construction . (455,887) (947,671) Plant Removal Costs - ' (5,795) (2,949)
. Principal Payments on BWs (235,000) (220,000) ~ Note Proceeds . 103,000 _ 0 g Principal Payments on Notes (16,019). O i Interest Paid (935,556) (945,672)
Operating Transfers Out to Other Funds (107,000) (109,793) Operating Transfers in From Other Funds 107,000 109,793 Net Cash (Used In) Capital and Related Financing Activities _ 1,545,257) ( (2,116,292) See accompanying notes. 8
COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES FOR THE YEAR ENDED SEITEMDER 30,1996 CITY OF ALACHUA, FLORIDA
. (Concluded)
Total Proprietary (hiemorandum Fund Ty pes Only) Enterp:1se- 1995 Cash Flows From Investing Activitim Investments Purchased $ (1,190,753) $ (1,379,100) Investments Matured 1,364,363 1,757,001 Interest Income 140,264 151.314 Net Cash Provided By Investing Activities 313,874 529,215 Net Increase (Decrease) in Cash, Cash l Overdraft and Cash Equivalents 657,009 (86,792) l Cash, Cash Overdraft and Cash Equivalents, October 1,1995 336,9L 423,722 . Cash, Cash Overdraft and Cash Equivclents, September 30,1996 $ 993.939 $ 336,930 Reconcillation of Cash, Cash Overdraft and Cash Equivalenis (Above) to Combined Balance Sheet Captions on Combined Balance Sheet Cash, Cash Overdraft and Cash Equivalents $ 278,028 $ (97,791) Restricted Assets . Cash and Cash Equivalents 715,911 434,721 Total $ 993.939 $ 336,930 Schedule of Noncash Investing and Financing Activities Contributed Assets $ 282,454 $ 0 See accompanying notes. 9-l
y 1 NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FLORIDA Note 1 - Sumnsary of Significant Accounting Policies The City of Alachua, Florida (the City) is a political subdivision of the State of Florida located in Alachua County. The legislative branch of the City is composed of a five-member elected commission. The City Commission is governed by the City Chaner and by state and local laws and regulations. The City Commission is responsible for the L.*ablishment and _ adoption of policy. _ The execution of such policy is the responsibility of the Conanission-appointed City Manager. The City's major operations include various utility services - electric, water and wastewater as well as police protection, road and street maintenance, parks, recreation and other general
- - government services. The City contracts with Alachua County for the provision of fire l
service at a fixed cost to the City which is renegotiated annually. The City leases the fire station arxl equiprnent to Alachua County at no cost. Sanitation services are provided by a private company, but billed by the City to its custonwrs. The City retains an administrative fee on sanitation services. l l . ! The accounting policles of the City conform to generally accepted accounting principles as applicable to governments. The following is a sumnury of the more significant accounting policies. Reporting Entity _ _ As outlined in Governmental Accounting Standards Board (GASB) Statement No.14. The
- Reponing Entity, effective for financial statements for periods beginning after December 15 1992, the fmancial reporting entity consists of the primary govemment, organintions for which the primary government is financially accountable, and other organlutions whose exclusion would cause the reporting entity's financial statements to be_ misleading or incomplete. Each potential component unit is indl.vidually evaluated using specific criteria ,
outlined in GASB Statement _No.14, _to determine whether the entity is: a) part of the i
> primary government; b) a component unit which should be included in the reporting entity
- (blended or discretely presented); or c) an organintion which should be excluded from the reporting entity entirely. The principal criteria for classifying a potential component unit include a) the legal separateness of the organiation, and b) the financial accountability of the primary government for the potential component unit resuhing from either the primary government's ability to impose its will on the potential component unit or the potential-component unit's fiscal dependency on the primary government. Based upon the application of these criteria, the following is a brief review of each potential component unit addressed in defining the City's reporting entity, e ' Conununity Redevelopment ' Agency The_ Community Redevelopment Agency (the Agency) was created by the City L Commission in 1982. In evaluating this potential component unit, it was determined that 5 the Agency is not a separate legal entity as it gene. rally cannot transact business in its own name and, therefore, should be included as part of the primary government for reporting ,
- purposes.' The Agency is presented in the general purpose financial statements of the City 4 . _ as a special revenue fund.
10
y. NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA FLORIDA (Continued) Note 1 - Summary of Significant Accounting Policies (Continued) Repoding Entity (Concluded) a Public Finance Authority For Affordable llous'ng (the Authority) l This potential component unit was created by the City Conunission in 1993. The Authority is a separate legal entity capable of suing and being sued, and able to purchase property in itu own name. By charter, the Authority's Board is composed of the City Commission and the City Commission has oversight over all financial activities. . Accordingly, the Authority is a component unit of the City. There have been no financial transactions in the Authority during 1996, or since its cteation; therefore, no amounts related to the Authority are reported in the accompanying general purpose financial statements. Fimd Accounting The City's accounting records are organized and operated on a fund basis. A fund is deilned , as a fiscal and accounting entity, with a self balancing set of accounts recording all financial l resources with all related liabilities, reserves and residual entitles, or balances or changes therein, which'are segregated for the purpose of carrying on specific activities or attaining-certain objectives. Amounts received from or payable to other funds are shown in the i accounts of an individual fund and separately presented in the accompanying general purpose financial statements until liquidated by payment or an it,terfund transfer. The following fund types and account groups are used in accounting for. the financial operations of the City. _ m Governmental Fur.J Types
- General Fund - to account for all financial resources not properly accounted for in another fund,
- Special Revenue Fund to account for the proceeds of specific revenue resources (other than special assessments ' expendable trusts, or major capital projects) that are ,
legally restricted to expenditures for specified purposes. The City uses this fund to account for the activities of the Agency.
- Debt Service Fund to account for the accumulation of resources and payment of general obligation bond principal and interest from these resources. The City uses the
. debt service fund to account for the accumulation of resources and the payment of principal and interest on the Gulf Breeze and FLGFA loans.
.n Proprietary Fund Types
-* . Enterprise Funds to account for operations that are financed and operated'in a manner similar to private business enterprises where the intent of the governing body is that costs of providing goods or services to the general public on a continuing basis I
be financed or recovered primarily through user charges. The City's electric, water and wastewater utility services are accounted for in these funds. In addition, a new fund for Turkey Creek water and wastewater utility services was established in 1993. 11
-4
. ; qa w
, , q , ,
. . c ; NOTES TO FINANCIAL STATEMENTS CITY OF'ALACHUA, FLORIDA J *
(Condnued) '
' ,~ .
1 Note I : Summary of Sisidftcant Accdanting Policies (Condamed)
; Fund Accounting (Concluded)' . ,
j. 1 ~ = a Fiduciary Fund Type Agency;. Fund l to account fc: assets held by the. City as. an agent _ for:other Mindividuals, private organizations, other governments, and/or other funds. ; The City employees' deferred compensation plan is accounted for in this fund. ' m Account Groups ' ,
". "* The Account Groups are used to establish accounting' control and accountability for
^ the City's general fixed. assets and general long-term' debt. - These account groups are not considered funds since they do not reflect available financial resources and related -
' liabilities. -
Measurement Focus- . The accoun'ing and reporting treatment applied to the fixed assets and long term liabilities - w associated with a fund are determined by its measurement focus. ' Governmental fund types 1
- are accounted for on a " spending". or " financial flow" measuremt'it focus. This means that ;
,only current assets and current liabilities are generally include,1 on the balance sheet. . The ,
L reported fund balance (net current assets) is considered a measure .of "available spendable p resources." Governmental fund type operating statements present increases (revenues and H
- ~
other financing sources) and decreases (expenditures and other financing uses) in net current C #
; assets. Accordingly, such statements are said to present a summary af sources and uses of -
"available spendable resources" during a period. l
- FixSd assets used in governmental fund' type operations (general fixed assets) ate accounted for in the general fixed assets account group, rather than in governmental fu'nds, and long .
- term liabilities expected to be financed from governmental fund types are accounted for in;
~
i the general long-term . debt account group.
~!
." . The proprietary fund tppes are accounted for on a " cost of services" or " capital maintenance", a ' ; measurement: focus. This means'that all' assets and.all liabilities (whether currentLor l
' nencurrent) associated with its activity are included on the balance sheet. The reported fund - !
. equity;(net total assets) is segregated into contributions and retained earnings components.
T ; _The proprietary fund type operating statements present increases (revenues) and decreases K .4 (expenses) in net total assets. Fe 4 The fiduciary fund type for the City, an agency fund, is' custodial'in~ nature and does not. ;
,f - involve measurement of results of operations.
4 6 t j, 1T , y 4 r 1 I 1.
~~
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't' ,
4 7
1 I NOTES TO FINANCIAL STATEMENTS b- CITY OF ALACHUA, FLORIDA (Continued) Note 1 - Summary of Significant Accounting Policies (Continued) i Basis of Accounting The governmental fund types are maintained on the modified accrual basis of accounting. Under this method of accounting, revenues are generally recognized when they become measurable and available as net current assets. Revenues which are susceptible to accrual, i.e., being recorded when earned, include property and utility taxes, refuse collection fees - and lot clearing, and certain other fees. Expenditures are generally recorded on an accrual basis, i.e., when incurred, except as follows: a Principal and interesi on long-term debt are recognized when due; and
. e accumulated vacation and sick pay is not recorded in the general fund since the current amount is immaterial.
The proprietary fund types are maintained on the accrual basis of accounting. This method of accounting relates costs and expenditures to the period in which benefits of the outlays are received. It is intended to provide an accurate matching of these benefits with associated revenues. Under the accrual basis of accounting, revenues.are recognized when earned and measurable, and expenses are recognized when incurred. 4 Proprietary fund types follow all applicable GASB pronouncements, as well as the following pronouncements issued on or before November 30, 1989,- unless those pronouncements conflict with or contradict GASB pronouncements: a Financial Accounting Standards Board (FASB) Statements and Interpretations; a Accounting Principles Board (APB) Opinions; and a : Accounting Research Bulletms, Pursuant to GASB Statement No. 26, the City has elected not to apply all GASB Statements and Intepretations issued after November 30,1989, to its proprietary fund type activities. Budgeting The City's procedures in preparing and adopting the annual budget are as follows: a The City Manager is responsible for preparing a proposed operating budget for the
. upcoming-year prior to September 30 that includes estimated revenues, proposed -
expenditures, and other financing sources and uses. m Public hearings are held to obtain taxpayer comments and suggestions. The budget is enacted through passage of a resolution, which sets spending limits'by department, a The City Manager is authorized to transfer budgeted amounts within any department in
. any fund, but may not revise total departmental expenditures without the approval of the City Commission. The budgetary information for all governmental fund types in the
, combined statement of revenues, expenditures and changes in fund balances is reported as amended.
13
NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FLORIDA
. (ontinued)
Note 1 - Summary of Significant Accounting Policies (Continued)
' Budgeting (Comiuded) .
e Budgets are adopted on a basis consistent with generally accepted accounting' principles.
- Appropriations lapse at the end of the year. Encumbrances are not recorded.
a The budgets for governmental funds which include the general fund and debt service fund that were either adopted or amended during the year by_ the City Commission were s
. prepared on-the same. basis of accounting utilized by those specific fund types.
Comparisons of budgetary data to actual are not required to be reported for proprietary fund types. . There was no budgct adopted for the special revenue fund. General fund appropriations for the fiscal year, as originally adopted, were $2,451,512 and as amended were $2,S88,606. Receivables
~
Customer accounts receivable are recorded at their net realizable value reduced by an allowance for uncollectible accounts. Property taxes receivable are recorded, if material, offset by deferred revenue for the amount.which is not measurable and available at September 30,1996. Inventory fNentory in the general fund is charged to expenditures when purchased. . Inventory in the proprietary fund types consists of supplies held for repairs or capital improvements, plus
. nuclear fuel.
Property, Plant and Equipment and Depitcia' tion .
- 4 Property, plant and equipment in the proprietary fund types are recorded at historical cost or at fair market value on the date donated. Ordinary maintenance and repairs are charged -
to expenses as incurred. Provision has been made for the depreciation of such property, plant and equipment using the straight-line method with a half-year convention. The straight-line rate is computed using - the period of years considered as the normal service life of the property. Such rates are as follows: Nuclear Plant and Equipment ' 2.7% to 3.6% 1 , Electric Distribution Plan -2% to 4% c - Water Plant 3% to 10% Wastewater Plant - 2.5 % Other Equipment - 10% to 20% Cons ruction work in progress is not depreciated until completed and placed into service. Utility plant acquired through grants is depreciated along with other utility plant purchased or constructed. 1 14
NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FLORIDA l (Continued) Note 1 . Sununary of Significant Accounting Policies (Continued) Property, Plant and Equipment and Depreciation (Concluded)
. All other property and equipment owned by the City is reflected at cost in the general fixed assets account group and shown as an expenditure in the fund purchasing the property or equipment.- Certain improvements such as streets, sidewalks and other infrastructure assets are capitalized along with other general fixed assets. No provision for depreciation is made for any general fixed assets.
Bond Discount and Issue Costs Amortization The bond issue costs on the Utility Revenue Bonds of 1993 and 1986 are being amortized over the lives of the bonds using the straight line method. The bond discounts on the Utility Revenue Bonds are being amortized over the life of the bonds using the effective interest method. Capitalized Interest During Construction The City accounts for capitalized interest during construction in accordance with Statement of Financial Accounting Standards No. 34, Capitalization ofInterest Costs, and Statement No. 62, Capitalization of Interest Cost in Situations involving Certain Tax-Erempt-Borrowings and Certain Gifts and Grants. No interest expense was capitalized during 1996 on construction-in-progress in any fund or account group. Long-Term Liabilities Because of their spending measurement focus, expenditure recognition for governmental fund types is limited to exclude amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund a
- type liabilities. They are instead reported as liabilities in the general long-term debt account group.
Compensated Absences
;, The City accrues accumulated unpaid vacation and sick pay when incurred, if material, in -
the proprietary funds and the general long-term debt account group. Amounts representing the current-liability for unused annual and sick leave in governmental fund types are immaterial. Therefore, the entire liability for governmental fund types is recorded in the general long-term debt account group. Personnel policies allow permanent, full-time employees to accumulate a maximum' of i
- twenty-five days vacation leave and sixty days sick leave. One week of vacation time is granted if sixty days sick leave is accumulated. Employees are paid the balance of their ,
accumulated vacation leave, in full, upon termination. Also upon termination, employees are paid the balance of their accumulated sick leave, up to a maximum of eighty hours. 15 1
NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FLORIDA (Continued) Note 1.- - Summary of Significant Accounting Policies (Continued) 4 Revenue Recognition Utility revenues are recognized when customers are billed unless there has been a significant change in meter reading rates, in that event, unbilled or deferred revenues are recorded for I consistency, ! Restricted grant revenues which are received, but not expended, are recorded as deferred revenues in the liability section of the balance sheet. Property Taxes . Under Florida law, the assessment of all properties and the collection of all county, municipal - s and school board property taxes are consolidated in the offices of the County Property Appraiser and County Tax Collector. The laws of the state regulating tax assessments are
~
also designed to assure a consistent property valuation method statewide. Florida Statutes permit municipalities to levy property taxes at a rate of up to 10.00 mills. The City's r'lage rate for the 1996 fiscal year was 5.50 mills, The tax levy of the City is established by the City Commission prior to October 1 of each4 - year and the Alachua County Property Appraiser incorporates the City millages M the total tax levy, which includes the County and the County School Board tax requirem, t. All property is reassessed according to its fair market value January 1 of each year. Each : assessment roll is submitted to the Executive Director of the Florida Department of Revenue for review to determine if the rolls meet all of the appropriate requirements of Florida Statutes. - All taxes are levted on November l'of each year or as soon thereafter as the assessment roll is certified and delivered to the County Tax Collector. All unpaid taxes become delinquent on April 1 following the year in which they are assessed. Discounts are allowed for early payment at the rate of 4%'in the month of November, 3% in the month 'of December, 2% in the month of January, and 1% in the month of February,. The taxes paid in March are without discount. On or prior to June I following the tax year, certificates are sold for all delinquent taxes on real property. After sale, tax certificates bear interest of 18% per year or at any lower rate 1 - bid by the buyer. Application for a tax deed on any unredeemed tax certificates may be made by the certificate holder after a period of r 9 years. Unsold certificates are held by-the County. L Delinquent taxes on personal property bear interest.at 18% per year until the tax is satisfied
- either by seizure and sale of the property or by the five-year statute of limitations.
, 16
-... . .- ,.- . - -. - --e..,, - --.. .- . .. - . --
+
. , [ - NOTES TO FINANCIAL STATEMENTS <
CITY OF ALACHUA, FLORIDA; (Condased) _ . a Note 11 h=-ary of ~_ - Accounting Policies (Concluded)1 4
/ . 1 Total.Colunas on tiie C=himad Statements . . . .. .. . _
iTotal columns on the combined statements 'are captioned " Totals (Memorandum Only)" to ,
- indicate that they are presented only to facilitate financial analysis.; Data in these columns :'
Ldo not present financial position, results of operations, or cash flows in conformity with:
; generally accepted accounting principles. Neither is such data comparable to a consolidation.
. . Interfund~ eliminations have not been made in the aggregation of.this data. The totals for : ,
1 1995 are presented for the purpose of additional analysis and are not a required part of the 7 ~ i.: . , general purpose financial statements.- c
}L
- Note 2M Deposits and Investments ,
'All monies collected by the City are required to be deposited in accordance with the laws of - .
< Lthe State of Florida. Florida Statutes authorize the City to invest in the following: . ._..
m . Direct obligations of, or obligations guaranteed by, the U.S. Government;
. m Interest-bearing time deposits or savings accounts in qualified institutions; . <
u Obligations of the Federal Farm Credit Banks;
, e - Obligations of the Federal National Mortgage Association; and :
u , The Local Government Surplus Funds Trust Fund.' i . t At year end, the carrying amount of the City's deposits was $1,715,415 and the. bank balance was $1,715,538. All deposits of the City are maintained _in qualifi_ed public depositories.
" : In addition, the City had $393,447 deposited with a fiscal agent as of September 30,1996, .
=v for the payment of revenue bonds and other interest on October 1; .
The Florida Security for Public Deposits Act; Chapter 280 ~of the Florida Statutes, provides. that qualified public depositories must maintain eligible collateral having a market value equal ' to 50% of the average daily balance for each month of all public deposits in excess of any .
. applicable deposit insurance held by the depository during the twelve months.immediately~
preceding the date of kny computation of the balance. As such, the depository is~not required to hold collateral in'the Cry's name nor specify=which collateral is held for the City's _. ' benefit. In the event of default,~ the Public Deposit Security Trust Fund, as created under the +
', laws of the State of Florida, would be required to pay the City for any deposits not covered -
M -
~ ~
by depository insurance or collateral pledged by the depository as previously described. . t
- _] ;
* + ,
y .{ - X
- i 7.-
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~
- NOTES TO FINANCIAL STATEMENTS
, - CITY OF ALACHUA, FLORIDA (Continued)
Note 2 -- Deposits and Investments (Concluded) Investments investmbats are carried at cost ot amortized cost. The carrying amount and' market value of investments owned by the City at geptember 30,1996, was as follows: Carrying Market Typr of Investment - Amount Value State Board of Administration of Florida Local
~
l Government Pooled Investment Account, Variable _ Interest Rate (5.68% at September 30,1996)' $' 323,684 $ 323,684 . Florida Municipal Power Agency (FMPA) CR-3.
- Pooled Investment Account 124,870 124,870
. United States Treasury Bonds, $575,000 Par Value,
- 7 625% Interest, Maturing February 15,2007 565,248 603,750 City of Arcadia - Debt Service Reserve 92,922 ' 92,922
__ICMA Deferred Compensation Account 98,197 98,197 Totals - $ 1,204,921 $ 1,243,423
- The State Board of Administration's deposits in Tallahassee are maintained in an investment pool which invests primarily-in commercial paper, repurchase agreements, bankers' acceptance notes and U.S. Government obligations. The FMPA. account represents a 2.1714% interest in an investment pool which invests primarily in mid. and long term U.S.
Government obligations, The' securities in the pool are registered in the name of SunTrust,
- N.A., as trustee for the FMPA (CR 3) participants. The U.S. Treasury Bonds are insured O or registered, or held by the City or its agent in the City's name. The City of Arcadia debt
. service reserve account is an investment pool held by the Trustee for the City of Arcadia ,
bond issue, which is invested 'n FNMA mortgage notes. The ICMA deferred compensation account is an investment pool managed by the International City Managers Association. The' State Board of Administration account is classified with ." cash and cash' equivalents" on
, the balance sheet because the investment has an original maturity of ninety days or less.
Note 3 - Inventory Inventory in the proprietary fund types at September 30,1996, consists of the following:
$ 119,848
' Electric Utility Supplies Water / Sewer Supplies 16,113 .
. Nuclear Fuel 50,580 Nuclear Plant Materials Inventory 20.267
. Total $ 206,808 18-
NOTES TO FINANCIAL STATEMENTS CITY OF ALACllUA, FLORIDA (Continued) Note 3 - - Inventory (Concluded) The utility supplies and plant inventory are valued at cost as determined by the average unit' cost method The City's portion of nuclear fuel inventory at the CR-3 nuclear generating
' facility is recorded at amortized cost, Note 4 - Detail of Property, Plant and Equipment General Fixed Assets Accounting Group A summary of changes in gene > "xed assets for the year follows:
Balance Removals and ' Balance 10/1/95- Additions Adjustments 9/30/96 City Park Structures and improvements - $ 19,885 $ 1,300- $- 0$ 21,185 City Hall Building- '157,625 0 0 157,625 City 11:11 Equipment,' . [~ Furnishings and Vehicles 68,505 24,831 (25,169) 68,167 l- Fire Station 72,169 0 0- 72,169 l- Police Station - 69,094 0 0 69,094 l Rolling Green Land and Buildings 698,624 0 0 698,624 Rolling Green Improvements 14,65s -0
- 0 14,653 Parking Lots Land 43,189 -0 0 43,189 Street Paving and Sidewalks 994,189 32,867 0 1,027,056 Fire Trucks and Other Equipment 178,865 - 0. 0- 178,865
- Mosquito Spraying Equipment 8,725 0 0 - 8,725 Land Other 171,791 0 0- 171,791 Police Department - Cars and
' Equipment 335,183 46,505 0- 381,688 Streets and Roads Equipment 82,973 14,822- -0 97,795 '
Miscellaneous 11,709- 0 0~ 11,709 Parks and Recreation - Equipment - 23,652 0 5,998 29,650 Public ' Works - Equipment
- Physical Environment - 13,175 0 -0 13,175 Equipment 59,114- 0- 0 59,114.
Total Property, Plant and Equipment - At Cost $ 3,023,120 $' - 120.325 $ (19,171) $ 3.124,274 19
, NOTES TO FINANCIAL STATF3fENTS CITY OF ALACIIUA, FLORIDA (Continued)
Note d'- - Detail of Property, Plant and Equipment (Concluded) Proprietary Fund Types A summary of property, plant and equipment in the pr(prietary fund types at September 30, 1996, follows: Nuclear Generating Plant and Equipment S 603,874 Electric Distribution Plant and Equipment 5,936,418 Water Plant and Equipment' 3,626,803 Wastewater Plant and Equipment 4,673,284-Turkey Creek Water and Wastewater Plant and Equipment 2,123,213 16, % 3,592 (Accumulated Depreciation) (5,076,625)
- Total Utility Plant - Cost Less Accumulated Depreciation $ 11,886,967 Nuclear generating plant and equipment represents the cost of the City's 0.0779% undivided interest in the Florida Power Corporation CR-3.
, Note 5 - Long-Term Debt -
General Long-Tenn Debt The following tabulation summarizes the changes in the City's general long term debt account group during the year ended September 30,1996: Balance New .( Principal - Balance 10/1/95 Debt Paid) 9/30/% City of Arcadia, Florida, Dedicated Pool Local Govern-ment Revenue Bonds, Series
. 1993- .
.$1,130,000 $ 0$ (35,000) $1,095,000 Sales Tax Revenue Note, Series 1995l . ~
388,709 0 (17,860). 370,849-4 . Note Payable - First National Bank 70,516 0 (16,218) 54,298- _ Note Payable - Other ' 14,361 0 - (3,604) 10,757 , Compensated Absences 63,556 0 (2,084) - 61,472 Totals $1,667,142 $ 0$ (74,766) $1,592,376 20
NOTES TO FINANCIAL STATEMENTS CITY OF ALACIIUA, FLORIDA (Continued) Note 5 - Long-Term Debt (Continued) General Long-Term Debt (Continued) a City of Arcadia, Florida - Dedicated Pool Local Government Revenue Bonds, Series 1993
,On July 1,1993, the City executed a loan agreement with the City of Arcadia, Florida (the Sponsor), and NationsBank of Florida, N.A. (the Trustee), to borrow $1,200,000 ,
from the Sponsor's.$45,455,000 Local Government Revenue Bonds, Series 1993, Dedicated Pool. The Sponsor issued the bonds on August 10,1993, and deposited the proceeds with the Trustee to fund the pool, available to governmental entities for, financing and refinancing certain qualified projects. During 1996, the Trustee was changed to Bank of New York.
' The City used the proceeds to refinance the balance due on a loan from the City of Gulf Breeze, originally issued to finance street and drainage improvements. The City of Arcadia loan is evidenced by a Governmental Unit Note, which is payable solely from the City's laal option gas tax revenues and guaranteed entitlement revenues (the Pledged Revenues), r The loan agreement required the establishment of the following accounts:
Revenue To collect the pledged revenues. Sinking To accumulate sufficient monies to pay interest on the next semiannual interest date (December 1 and June 1), to pay principal coming due annually and to make required ' reserve payments," if any.
- Reserve - To initially accumulate the maximum annual debt service requirement of
- $92,922.'
In accordance with the loan agreement, money on deposit in the revenue account must
- be disbursed in the following order:
.* To satisfy current debt service requirements of the note;
- to provide for the reserve payments, if any, when due (in the event the reserve account is insufficient);
- to the payment of any additional parity bonds;
- to the payment of any junior lien obligations; and a for any other lawful purpose.
21
~ NOTES TO FINANCIAL STATEMENTS CITY OF ALACIfUA, %ORIDA (Contint.ed) Note 5 ' - Long-Term Debt (Continued) General Long-Tenn Debt (Continued) e ~ City of Arcadia, Flodda - Dedicated Pool Local Government Revenue Bonds, Sedes 1993 (Concluded) . . The note carries a true interest cost rate of 5.375% and matures on December 1,2014. The; following tabulation summarizes remaining principal and interest payment requirements of the note: Fiscal Year Ending September 30 Principal _ Interest Total l 1997 5 35,000 $ $3,578 $ - 88,578 1998 40,000 52,122 ~ 92,122 1999 40,000 50,503' 90,503 2000- 35,000 48,930 '83,930 2001 40,000 47,298 87,298 Thereafter 905,000 395,351 1,300,351 Totals $1,095,000 $ 647,782 $1,742,782 m . Sales Tax Revenue Note, Series 1995 On May 24,1995, the City adopted Resolution R-95-9, atithorizing the issuance of a -
$400 000 Sales Tax Revenue Note, Series 1995. The note was issued at the par amount of $393,000, and used to refinance the City's outstanding FLGFA loan, plus pay note-
. issuance and loan redemption costs.
The note is secured by a lien upon tne pledge of the City's local government half-cent - sales tax, Principal and interest are payable on the first of each month in level monthly installments for fifteen years. Interest accrues at a fixed rate of 5.20% (based on a 360 day year) for the first five years of the note, and is reset on June 1,2000 and June 1, 2005, to the five-year U.S. Treasury index on those dates. . The City may prepay the note in whole or in part, at any time, without petulty. Following is a tabulation of the remaining principal and interest requirements of the note
- (interest requirements assume a 5.20% rate throughout the entire term):
Fiscal Year Ending September 30 Princ' pal Interest Total 1997 .$- 18,881 $ 19,098 $ 37,979-1998 19,901 '18,078 37,979 1999' 20,976 17,003 37,979 2000 22,108 15,871 37,979
'2001 23,303 14,676 37,979 Thereafter - 265,680 -66,554 332,234 Totals $ 370,849 $ 151,280 $ $22,129 22
) NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FLORfDA (Continued) e Long-Tenn Debt (Continued) General Long-Term Debt (Concluded) _ Note Payabi. First National Bank of Alachua . This unsecureu aote is payable over forty-eight months beginning October 18,1995, at -
$1,638 per month including 5.35% interest. The proceeds were used to purchase four
. chicles.-
i e iote Payable - Other . , his unsecured note is payable over sixty months beginning May 6,1994, at $385 per ' inth including 8% interest. Genet 1 Long-Tenn Debt - Summary The following tabulation indicates the pnncipal retirement of general long'-term debt by fiscal - l year (excluding compensate'i absences): i 1995 City of Sales Tax Fiscal Year Ending Arcadia Revenue Notes Total September 30 Loan Note Payable Principal 1997 $ 35,000 $ - 18,881 $ 21,033 $ 74,9I4 1998 40,000 19,901 22,310 - _82,211-1999 40,000 20,976 21,712 82,688 e 2000- 35,000 22,108 0 57,108 2001 40,000 23,303- 0 63,303 Thereafter 905,000 - 265,680 0- 1,170,680 Totals $ 1,095,000 $ 370,849 $ 65,055 $ 1,530,904 Proprietary Fund Types a Utility Acquisition Bonds, Series 1993 On October 18,1993, the City adopted Resolution R-93-24 authorizing the issuance of
$1,300,000 Utility Acquisition Bonds, Series 1993 (the 1994 bonds) to provide the neces.sary funds for the acquisition of the private water and wastewater systems in the Turkey Creek recreational residential community in the City, The bonds are secured by the gross revenues of the combined electric, water and wastewater utility systems'of the City, but is subordinate to_ the secured interests of: the bondholders in the other outstanding revenue bonds of the City.
The bonds were issued without premium or discount and are payable at 7 % interest, with
~
interest payable semiannually beginning April 1,1994, and principal payable annually beginning October 1,1994. 23
' NOTES TO FINANCIAL STATEMENTS
' CITY _ OF ALACHUA, FLORIDA (Continued)
. NoteI5 ' Long-Term Debt (Continued)
~
- - Propritary Fund Types (Continued) e Utility' Acquisition Bonds, Series 1993 (Continued)
The following tabulation summarizes principal and interest payments on the 1994 bonds: , Fiscal Year Ending ' September 30- Principal Interest Total 1997- 3 25,000 $ 87,325 $ 112,325 , 1998 25,000 85,575 110,575
,. .1999- 25,000 83,825 108,825
'2000 30,000 81,900 111,9001 2001 30,000 79,800 109,800 2002 . 35,000 77,525 112,525 2003 - 35,000_ 75,075 110,075-2004 40,000 72,450 112,450 2005 40,000. 69,650 109,650 '
2006- 45,000 66,675 111:675 2007 45,000 63,525 108,525 2008 50,000 60,200 110,200 - 2009- 55,000 56,525 111,525 2010 55,000 52,675 107,675 2011 60,000 48,650 108,650 2012 65,000 '44,273 109,275-2013 70,000 39,550 109,550 2014 75,000 34,475 '109,475 2015 . 80,000 29,050 - 109,050 ^ 2016 85,000 23,275 108,275 2017 90,000 _17,150 107,150 2018 95,000 10,675. 105,675 2019 105,000 '3,675 108,675 Totals .$ 1,260,000 $ 1,263,500 '.$ 2,523.500 m Utility Refunding Revenue Bonds, Series 1993 . On March 31, 1993, the City adopted Resolution R-93-3, authorizing the issuance of
.59,500,000 Utility Refunding Revenue Bonds, Series 1993. The bonds were issued at
. a par amount of $9,000,000 to provide a portion of the funds required: a) to advance
- refund the City's outstanding Utility Revenue Bonds, Series 1990 and a portion of the _
City's outstandinF Utility Ref'-'iding Revenue Bonds, Series 1986; b) to construct and install certain facilities constituting water and wastewater capital improvements; and c)
- to pay a portion of the costs of issuance.
L Gross revenues of the system, plus utilities service taxes are pledged as collateral for the revenue bonds on a parity.and rank equally as to lien on, and source and security for payment with the City's outstanding Series 1979 bonds and the remaining Series 1986 bonds, i 24
L NOTES TO FINANCIAL STATEMFA'TS c CITY OF ALACHUA, FLORIDA-
- (Continued)
Note 5 ' Long-Tersn Debt (Continued) i-Proprietary Fund Types (Continued) . m Utility Refunding Revenue Bonds, Series 1993 (Concluded) The $9,000,000 issue consists of $1,355,000 of serial bonds maturing from 1994.to 2009, with stated interest rates of 3% to 5.5%I $1,635,000-5,625% Term Bonds'due
- April 1,2012, sold at a price of 98.5% of par; and $6,010,000-5,75% Term Bonds, due April _1, 2020, at 99% of par, The Term Bonds are subject to mandatory redemption prior to their stated maturity dates as shown below, Interest is payable semiannually on each' April 1 and October 1, with principal due annually on October 1. The following tabulation summarizes principal and interest payments on the 1993 bonds.-
Fiscal Year Ending
~ September 30 Principal Interest Total 1997 5 !$,000 S 507,635 5 522,635-1998 20,000 506,990 526,990 1999 20,000 506,090 526,090 2000- 20,000 505,150 - 525,150 2001 25,000_ 504,190 529,190
~2002 -25,000- 502,%$_ $27,965 2003 20,000 501,715 521,715 2004 25,000 500,695 525,695 2005- 25,000 499,395 _ _ $24,395 2006 25,000 - 498,070 523,070 2007 390,000 486,726- 876,726 4 2003 205,000 479,666 684,666-2009- 490,000 464,494 954,494 2010 515,000 - 437,544- 952,544 i
-2011 545,000 - 408,575 953,575
-2012 575,000 377,919 952,919 2013 610,000- 345,575 955,575 2014 640,000 310,500 950,500 2015 680,000 273,700 953,700 2016 720,000 234.600 954,600 2017 760,000 193,200 953,200 2018- 805,000 .149,500 954,500 2019 850,000 103,213 953,213 2020 945,000 -54,337 999,337 Totals -$ 8,LO,000 $ 9.352,444 $ 18,302,444 i i
4 ' i 25
}
i NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FLORIDA (Continued)
-- Note 5 - Long-Term Debt (Continued)1 Proprietary Fund Types (Continued) a Utility Refunding Revenue Bonds, Sedes 1993 (Concluded)
- Allocated Between Proprietary Funds
-(Unamortised . Carrying
-Par Discount) Value Electric Fund $ 6,154,772 5 (54,900) S 6,099,872
. Wastewater Fund 1,679,378- - (14,980) '~ 1,664,398 Turkey Creek Fund 1,115.850 (9,953) 1,105,897 Totals 3 8,950.000 $ (79,833) $ 8.870.167 The 1993 bonds are considered additional parity bonds, issued under the authority of Original Resolution R-86-10 (which authorized the issuance of the Utility Refunding Revenue Bonds of 1986). Tha covenants and pledges contained in the original resolution ;
regarding the establishment and maintenance of various funds and accounts for the 1986 bonds are applicable to the 1993 bonds. The reserve account established in the original , resolution is applicable pro rata to the 1993 bonds, and the payments made into said reserve account are increased proportionately to provide a reserve for both the 1993 - bonds and the remaining 1986 bonds equal to the maximum annual combined bond service requirement. . In addition to the refunding proceeds, $1,003,318 was deposited into a construction fund established by the bond tesolution and used primarily for water and wastewater capital improvements, a Utility Refunding Revenue Bonds of 1986 . On May 19,1986, the City ' adopted a resolution to' issue the Utilities Refunding Revenue Bonds, Series 1986; These bonds were issued pursuant to a multi-purpose plan including the advance refunding of certain of the City's utility refunding and revenue bonds. The refunding portion of the proceeds was deposited in an ir evocable trust with an escrow agent to provide for all future debt service payments on the refunded bonds. - As a result, the 1983 bonds and all other refunded bonds are conside-d h. Se defeased, and the trust account assets and liabilities of the defeased bonds are not included in the financial statements of the City. The 1986 bonds were issued on a parity and rank equally as to tien on'and source and - security for payment from gross revenues and excise taxes as the Utilities Revenue Bond of 1979. Gross revenues of the electric, water and was ewater utility systems, plus utilities service taxes are pledged as collateral for the refunding bonds which have a _ coupon rate ranging from 6.15% to 7.80%. 26
NOTES TO FINANCIAL STATEMENTS CITY OF ALACIIUA, FLORIDA (Continued) Note 5 Long Tenn Debt (Continued) .
. Proprietary Fund Types (Continued) a Utility Refunding Revenue Bonds of 1986 (Continued) .
The $7,750,000 issue consisted of $1,795,000 of serial bonds maturing from 1991 to 2000, and $5,955,000 of term bonds; $2,495,000 due in 2007 and $3,460,000 due in 2016, but which are subject to mandatory redemption in earlier years as tabulated below at no premium. All of the outstanding term bonds due in 2016, with the exception of $255,000, subject to mandatory redemption in 2008, were advance refunded through the issuance of the
$9,000,000 Utility Refunding Revenue Bonds, Series 1993, The following tabulation summarizes remaining principal- and interest payment requirements of the 1986 issue:
t Fiscal Year Ending September 30 Principal Interest Total . , 1997 5 195,000 5 279,259 S 474,259 I L 1998 205,000 264,731 469,731 L 1999 225,000 249,151 474,151 2000 245,000 231,995 '476,995 2001 255,000 213,252 _468,252 2002 -275,000 193,490 '468,490 2003: 300,000 172,177 472,177-2004 320,000 . 148,928 468,928 2005 350,000 124,128 474,128 2006 375,000 95,002 470,002.
'2007 620,000 67,940 687,940 2008 255,000 19,890 274,890 Tota!s S 3,620,000 $ 2,059,943 $ 5,679,943 Allocated Between Proprietaiy Funds-.
.-(Unamortized Carrying Par Discount) Value Electric Fund . $ 1,%7,470 $ (21,065) $ 1,946,405 Was:cwater Fund 1,652,530 (17,692) 1,634.838
- Totals $ 3,620,000 $ (38,757) $ 3,581,243 27 l
NOTES TO FINANCIAL STATEMENTS CIT 5' OF ALACHUA, FLORIDA (Continued) Note 5 - ; Long-Tenn Debt (Continued)
= Propdetary Fund Types (Continued)-
a Utility Refunding Revenue Bonds of 1986 (Concluded).- The bond resolution required the establishment of the following accounts: Revenue To collect electric, water and wastewate: revenues.
- Operation and Maintenance To pay for cost of operation and maintenance of the utility system.
Bond and Interest Sinking - To accumulate sufficient monies to pay interest on the l next semiannual interest date (October 1 and April 1) and to pay principal coming due on serial bonds. Bond Amortization - To accumulate monies for payment of amortization ! -installments coming due on term bonds. Reserve To accumulate monies; to (1) pay cost of repairs.and replacement to utility system; (2) pay for improvemer.ts L to the system; and (3) pay bond principal and interest (* L when other accounts 'are insufficient. I' , In sccordance with the bond resolution, operating revenues from the utility system must
= be disbursed in the following order:
- To sati.sfy curreni debt service requirements of serial and term bonds;
- to fund a reserve account equal to the maximum annual bond service requirement;
- to meet operating End maintenance expenses before depreciation; and
- for any other lawful purpose.
m - Utilities Revenue Bond of 1979 On August 6,1979, the City adopted a resolutio a to issue the Utilities Revenue Bond of 1979. The bond was issued on December 17,1979, to partially finance the cost of the construction of additions to the utility system.
> Net utility revenues and utilities service taxes are pledged as collateral for the revenue bond which has a coupon rate of 5%. The lien on revenues by the 1979 bond is equal to the Utilities Refunding Revenue Bonds of 1986 and 1993. Amounts deposited in the revenue fund created by the bond resolution must be disbursed in the.following~ order:
28
NOTES TO FINANCIAL STATEMFETS CITY OF ALACHUA, FLORIDA (Continued)
' Note 5 - Long-Term Debt (Continued)
- Proprietary Fund Types (Continued) n . Utilities Revenue Bond of 1979 (Continued)
* : To meet operating expenses;
- to satisfy debt service requirements; and a to fund a reserve account to be used for repairs, improvements and to satisfy debt service.
The issue consists of $830,800 of Serial Bonds $165,800 of which has been paid and i the remainder which matures as indicated in the following schedule: ) , Fiscal Year Fauling l . September 30 Prindpal . Interest Total 1997 $ 16,000 $ 33,250 $ 49,250 1998~ 17,000 32,450 49,450-1999- 18,000 31,600 49,600 2000 18,000 30,700 48,700 2001 19,000 29,800 48,800 2002 21,000 :28,850 49,850 2003 21,000 27,800 48,800 2004 23,000 - 26,750 49,750 2005 24,000 25,600 49,600 2006 ' 25,000 24,400 49,400 2007 26,000 23,150 49,150 2008 .27,000 21,850 48,850 2009 29,000 20,500 49,500 2010 30,000 19,050 -49,050
,2011. -32,000 17,550 49,550 l 2012 33,000 15,950 48,950
'2013 35,000 14,300 49,300 !
2014 37,000 12,550 49,550 2015 38,000 10,700- 48,700 2016.-. 40,000 8,800 48,800-2017 43,000- 6,800 49,800 2018 45,000 '4,650 49,650 2019 48,000 - 2.400 50,400 Totals $- 665,000 $ 469J5U $ -'1,134,450 29
NOTES TO FINANCfAL STATEMENTS CITY OF ALACIIUA, FLORIDA (Continued) Note 5 - Long Term Debt (Concluded) ' Proprietary Fund Types (Concluded) e Utility Revenue Bond of 1979 (Concluded) Summary of Principal Maturities Required For Next Five Years on Long-Term Debt Principal Required During Fiscal Year Ending September 30 1996 1997 1998- 1999 2000 General long-Term Debt - F 74,914 $ 82.211 $- 82,688 $ 57,108 $ - 63,303 Utility Acquisition Bonds,
' Series 1993 25,000 M,000 25,000 ' 30,000 - 30,000
' Utility Refunding Revenue
- Bonds, Series 1993 15,000 = 20,000 20,000 20,000 25,000-
. Utility Refunding Revenue .
Bonds, Series 1986 195,000 - 205,000 225,000 . 245,000 255,000 Utility Revenue Bond, - Series 1979 16,000 17,000 18,000 18,000 19,000 Note Payab!c - First National Bank 33,400 35.240 18,341 0 0 Totals S 359,314 5 384,451 $ 389,029 $ 370,108 $ 392,303
~
m Note Payable - First National Bank of Alachua ' This unsecured note dated March 26,1996, for $103,000 is payable over thirty-six months beginning April 26,'19%, at $3,105 per month including 5,30% interest. The proceeds were used to purchase computer equipment cnd pay operating expenses, m Interest Interest paid (governmental fund types) or accrued (enterprise funds)' amounted to
$74,966 in the debt service fund, $3,851 in the general fund and $933,611 in the proprietary fund types (including amortization of bond discounts) for the' fiscal year
' ended September 30,1996. All interest in the proprietary fund types was charged to interest expense, Note 6 -: Restricted Assets The required balances and the actual carrying values of the restricted asset accounts in the enterprise funds at September 30,1996, are as follows:
l 30
s s , n NOTES TO FINANCIAL STATEMENTS I 1 CITY OF ALACHUA, FLORIDA'
^
4 - . (Continuaf)[
' ~
Note 6 -: Restrkted Assets (Co$cladaf)' . N Y 4 Blacerb her__ Westewater TWlwy Creek - - Twels
-'f < _. Requise( Actual Required Actant Required Actant Required ~ Actual Required : Actual Reesame ased -> 4 . .-
, swing Fund -- , . $ 261,317 8 . M3,tle $ 24.615 $ . 0 $ 237.129 $ 3M,970 $ 64,100 $ 125,t22 $ $67,171 5 715,910 -
hoserve Aesount ' 217,995'- - 217,995 = 43,320 ' 40,000 731,041 731,841; $7,165 57,165 1.050.321 1,047,001 . ,,
. Rossi Amoruseance Accousa C= 0 0' -0 [MS.248 M5,248 0 '0 565.248 !M,248
~~
4
'm--
Cumanut Depoelm 135,325 0 0 ~ 0- 0 0 _0 0 135,325 -0;
' Ca S t-
, I ,
_ s Aeoount J * . 124,870 124,870 0 0 0- 0 0 0- .124.870 124.870 >
' impost rue Pumd ; 41,921 41,92t ' '0 0 0- - 0 _j 0 ~ 41,921.- - 41,921 Total Required ' $ 781.428. $ 67.945 9~ _ $2.568.856 -
- Teeni Aatual c - $ 638.004 . $ - 40.000 $1,634.059 $ 182,287 $2.494.950 -~ .
~
- lt is the City's policy to record all debt service cash accounts related to the 1990 issue in the m electric fund, the' 1986 issue in the wastewater fund, and the 1979 ime in Ae water fund !
, Cash accounts relating to the 1993 issue have been' allocated to the electric fulsd (if related .
to the refunding of the 1990 issue), the wastewater fund (if related to the^ refunding of the > 1986 issue) and to the Turkey Creek fund (if new money), , j
; The CR 3 D=nadenioning' Account is required by state l'aw to accumulate funds for the -
City's share of the decommissioning costs of the CR-3 nuclear power plant. The City's .
' contribution to this account was $3,586 plus interest during 1996. The required cash balance .
~
"in'the Mmmissioning account is offset by a deferred credit on the balance' sheet. ,
_- The impact fee fund represents prepaid impact fees and is also offset by a deferred credit.
; Note 7 - - Interfund Receivatdes and Piyables ,
- Interfund trtnsactions are normally recorded through a consolidated cash account instead of
-. ' liderfund receivables and payablesF Following is a summary of interf.md receivables and.-
, payables at September 30,1996: Due Freen - Due To - . Amount
.. Enterprise - rurkey Creek . Water / Wastewater - Eiterprise - Electric . 5- ;67,094 Enterprise . Wastewater : Enterprise .- Electric 441,601 .,
General Fund . Enterprise J Electric 16,795 ' Total $ 525,490 4 31 T. YY
~
y
l NOTES TO FINANCIAI, STATEMENTS CITY OF ALACHUA, FLORIDA = (Continued) Note 7 Interfund Receivables and Payables (Concluded) Following is a summary of interfund transfers during 1996: Transfers Out Transfers In Governmental Enterprise Debt General Service Water Total
; Governmental General $ 0 $ 127,744 $ 0 $ 127,744'
- Enterprise Electric:
- Noncapital Financing . .
178,113' 0 0 178,113 - Turkey Creek Water / Wastewater'
,_ Capital Financing 0 0 107,000 107,000 Totals $ 178,113 $ 127,744 $ 107,000 $ 412,857
- Note 8 - : Fund Balances - Reserved and Designated -
~
Fund balances are reserved and designated within the governmental fund types as follows: Debt General - Service Reserved Fire Station' improvements . $ 60,249_ $ 0 Debt Service- 0 -156.111 Total Reserved Fund Balances .$ 60,249 $ 156,111 -
- Designated.
Police Operations 14,887 -$
$ J Reserves earmark a portion of fund equity as L1) not'available for r.ppropriation or expenditure; or 2) legally restricted to a specific future use, Designations of fund equity-represent management's tentative spending plan.
- Note'9.- Changes in Fund Equity - Enterprise Funds 1 Following is a summary of the changes in fund equity - enterprise funds for the year ended September 30,1996:
- Fund Equity' - October 1,1995 $ - (50,856)
Net Income - All Enterprise Funds 354,191 Contributed Assets 282,454 Fund Equity - September 30,1996 $ 585,789 ~ 32 1 1
NOTES TO FINANCIAL STATEMENTS CITY OF ALACIIUA, FLORIDA (Continued)
. Note 10.- Excess of Expenditunes Over Budget and Deficit Equity Balances For excesses of actual expenditures over budgeted appropriations for governmental fund types, please see page 6 of the financial statements.
The following individual fund shows deficit equity balances at September 30,1996, in the amounts shown: Fund Type - Deficit Enterprise Electric Unreserved Retained Earnings S 2,043,648 Wastewater _ Unreserved Retained Earnings 340,694 i Turkey Creek Water / Wastewater Unreserved Retained Earnings 220,760 Note 11'- Segment Infonnation - Proprietary Fund Types Turkey Creek
- Water /
Electric Water Wastewater Wastewater Fund Fund Fund Fund Operating Revenues $ 5,234,754 $ 269,904 5 451,612 $ 241,772 Depreciation 205,981 106,170 124,680 43,860 Operating income (Loss) 1,183,750 (93,551) 34,379_ 144,383 Nonoperating Revenues (Expenses) ($16,902) 7,893- (131,057) -(96,591) ' Operating Transfers In (Out) (178,113) ~ 107,000 0 (107,000)- Net income (Loss) 488,735 -21,342 (96,678) (59,208) Property, Plant and Equipment - Additions 325,655 402,545 4,987 5,231 Contributions Current Year 77- 282,454 0 0 Net Working Capital 1,298,323 72,544 (364,495) (32,052)-
. Total Assets 7,309,164 2,477,273 4,930,229 2,256,232
~
Bonds Payable - 14ng Term Portion 7,929,979 649,000 3,207,404 2,339,027 s Total Equity (2,043,648) 1,781,888 1,068,309 (220,760) Total Retained Earnings (Deficit) (2,043,648) 1,N2,952 (340,694) (220,760) Note 12 - Electric Power Agreements City of Gainesville . The City entered into a wholesale electric' service contract with the City of Gainesville, Florida, on January 21,1987,' for the purchase of the majority of the City's electric power requirements beginning January 6,1988. ' The City constructed a 138 x 69 - 12.47Y/7.2kV substation to receive the power, which was placed into operation on that date. The substation is located in such a manner that the City has reasonable access to the transmission lines of both the City of Gainesville and Florida Power Corporation. A portion of the substation is 35 I
f
, NOTES TO FINANCIAL STATEMENTS CITY OF ALACHUA, FLORIDA (Continued)
- Note 12y Electric Power Agreements (Concluded)-
owned by the City of Gainesville. The initial term of the contract was five years, with options for additional' ant lal extensions. The contract was tenegotiated on October 2,1992, and extended for an additional fifteen years, beginning on December 31,1992. Provisions in the contract allow for price adjustments for increases and decreases in the City of' JGainesville's fuel and operating costs. ; Total payments to the City of_Gainesville for 1996 ~
' were $2,938,457.
Crystal River Unit #3 Participation Agreement The City is a participant in an agreement with Florida Power Corporat!on which was entered . Into on July 31,1975. -Under terms of the agreement,- the' City acquired an 0.0779%
' ownership interest and generation entitlement share in the nuclear steam electric generating unit. ' Participants are entitled to energy output of.the unit based upon their respective generation entitlement share.
, Flonla Power Corporation has been appointed by the participants to act as their agent and l_ has scle authority to manage, control, maintain and operate the unit. Operating costs of the unit, in Beneral, are shared in proportion to each generation entitlement share on a monthly.. basis. Common and external facilities of the generating unit are solely owned by Florida
- Power Corporation and participants share in the operating and maintenance expenses of such facilities. Nuclear fuel payments and capital acquisition costs are required of participants in ;
advance. Total payments for 1996 were $163,018. p The City's share of plant decommissioning costs to be paid during the years 2015 through 2022 is being accumulated in an account administered by the FMPA. FMPA has determined the appropriate account balance to be $124,870 at September 30,1996. The cash account
. y
-is offset by a deferred credit on the balance sheet of $124,870 at September 30,1996, '
St. Lucie No. 2 Power Purchase -Agreement The City has negotiated a long-term agreement with Florida ^ Power and Light Corporation through the FMPA to purchase .3044 megawatts of generatkg capacity and a corresponding
- amount of energy monthly from the St. Lucie No, 2 nuclear generating plant.- The plant
, became operational in 1984. Total payments for 1996 were $147,731,
, The City has signed certain dmuments with FMPA relating to the St. Lucie Project that provide that if the agency defaults on certain bond payments,- the City would be requin.d to
-- satisfy payment on their share ( 431%) of the bonds. The par amount of the outstnding bonds at September 30,1996, was approximately $300 million.
Note 13 - Defined Benefit Pension Plan < All fu!I-time employees of the City participate'in the Florida State Retirement System (the
, System), a multiple-employer defined benefit public retirement system. The payroll for employees covered by the System for the year ended September 30,19%, was 34
.1
.q m
j u f. NOTES 'IU FINANCIAL STATEMENTS
' CITY OF ALACHUA, FLORIDA (Continued)
, Note 13 -1 Denned Benent Pension Plan (Concluded)-
~
" ;$1,439,828 for alllother ' employees. The City's total payroll for all employees was
$1,620,836.
4:' .
?All full-time employees *of the City are eligible to participate in the System. _Special risk = .
J employees who retire at or after age 55, with ten years of creditable service; and all other -
-. employees who retire at or after age 62, with ten years of creditable service, are enutled to
. - a retirement benefit, payable monthly for life; equal to the product of: (1) average monthly 1 compensation in the highest five years of creditable service; (2) creditable service during the ,
appropriate period; and-(3) the. appropriate' benefit percentage < Benefits' fully vest on - d
, reaching ten yean of service. LVested employees may retire after ten years of creditable
-4 '
= service and receive' reduced retirement benefits, The System also provides death and1 1 disability benefits. Benefits are established by Florida Statute.
The Cit _ is required by Florida Statute to contribute 27.10% of special risk,22.24% of.
- senior management, and 17,43% of all other employee camings during calendar year 1996 L(27.49%; 24.54%; and 17.57% respectively, for calendar year' 1995).- The contribution -
requirement foi the year ended September 30,1996, was $302,290. - .
'Ihe " pension benefit obligation" is a standardized disclosure measure of the present value of-
- pension benefits, adjusted for the effects of projected salary increases and step-rate. benefits, H estimated to be payable in the future as a result of employee service to date. The measure, which is the actuarial present value of credited projected benefits, is intended to help users assess the System's funding status on a going concern basis,L assess progress:made.in accumulating sufficient assets to pay benefits when due, and make comparisons among PERS ,
1 and employees. The. System does not make special measurements lof. assets and pension benefit obligation for individual employers. The pension benefit obligation at June 30,- 1995, .
< for the System as a whole, determined through an actuarial valuation performed as' of that ;
date, was $47.3 billion. The System's net assets available for benefits on that date (valued
-at cost and at market) were $37.5 billion and $45.2 billion, respectively, leaving an unfunded
, pension benefit obligation at cost and market of $9.8 and $2.1 billion / respectively. - The w City's 1996 contribution represented less than i% 'of total contributions required'of all 4
participating entities.- . 1 .
^ a, Ten-year historical trend "information showing thel System's: progress in accumulating , -
x
; sufficient assets to pay benefits when due is,not presently available. However, historical
. i L trend information commencing with 1986-87. is present in the System's June 30,1995, annual y > financial report and will become more informative as data is developed'and presented for-
. each subsequent year.
t , , j Compliance Violatiou f_ Reports submitted to the Florida Retirement System (FRS) during 1996 contained errors and, accordingly, required payments to the FRS during 1996 totalling $23,438 were not made.
- That amount has been accrued as' a ' liability in the' accompanying combined financial statements.:
35 i
~
t'
+ +
4
S NOTES TO FINANCIAL STATEMENTS
. CITY OF ALACHUA, FLORIDA (Continued) ,
^
Note 14 . Deferred Compensation Plan The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, pennits them to defer a portion of their salary until future years.- The deferred compensation is not '
- available to employees until termination, retirement, death, or unforeseeable emergencies.
= All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until
- paid or made available to the employee or other beneficiary) solely the property and rights of the City (without being restricted to the provisions of the benefits under the plan), subject only to the claims of the City's general creditors. Participants' rights under the plan are l: equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant.
L The City has no liability for losses under the plan, but does have the duty of due care that would be required of any ordinary prudent investor. The City believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future, Note 15 - Risk Management.
- r. The City is exposed to various risk of loss related to torts; theft of, damage to and I destruction of assets; errors and omissions; and natural disasters for which the City carries s
insurance. Insurance against losses are provided for the following types of risk with the following carriers: - a Florida League of Cities, Inc. m 1 Workers' Compensation and Employer's Liability' m General Liabliity and Automobile Liability - a Real and Personal Property Damage a Automobile Physical Damage Hilb, Rogal and Hamilton Company of Gainesville, Florida,'Inc'. m Public Employees' Blanket Bond
. m Boiler and Machinery Policy - Electric Submtion a Public Official Liability .
m Law Enforcement Officers' Professional Liability and Other Mandated Coverage a ' Accidental Death and Dismemberment-m Auxiliary Reserve Policy
^
- Hunt Insurance Group, Inc. .
m Law Enforcement Officers' Professional Liability 36 k
rs x
~
p : NOTES TO FINANCIAL STATEMENTS p CITY OF ALACHUA, FLORIDA (Concluded)
-- 1
~
; Note 15 J Risk Manag==d (Cenduded) .
The City's coverage for_ workers'; compensation is under a retrospectively rated poli $y. Premiums are accrued based on the ultimate _ cost to date of the City's experience for this type -
~
- - . of risk. -
, The City's coverage for law enforcement ofUcers' professional liability administered by Hunt
- Insurance Group, Inc. is through the Florida Police Chiefs' Self-Insurance Fund. The nature
- of .the. City's participation;in this public entity- risk pool,' _ including the rights - and.
responsibilities of the City and the pool h' ave not been determined.- ,
; Note'16 ' contingendes
~
,. Suhp?ar to September 30,-1996, auditors of the City's federal grant programs , ported.
that the City was unable to obtain documentation that all amounts reported as expended under: the COPS-MORE grant program _ had actually been' incurred, and was unable to verify that '
, the matching requirements of that program had been satisfied. In addition,' the' auditors _,
reported that the grant contract was signed by all parties, and all expenditures were incurred s, i
- after the grant period had expired. No liability has been accrued ~in the accompanying -
; financial statements for amounts, if any, due back to the grantor agency. The City estimates
- the amount will not exceed $10,000,- !
. . Arbitrage calculations are required and have not been performed on certain debt issues of the '
City Violations of arbige reporting requirements could affect the' tax-exempt status of the City's bonds. No liability has been accrued in the accompanying financial statements because 1 the amount, if any, cannot be easily estimated. . The agreement with Alachua County, Fiorida concerning the provision of fire services for:
= 1996, reautred the City to expend _ $50,000 on certain fire station improvements by December 31,1995, or return the same amount tothe County with interest, by April l',' 1996.~ Neither, of these actions were taken during 1996. ; Due to uncertainty surrounding Alachun County _'s future action, the City has continued to reserve fund balance for these amounts, and has not - u
--- accrued any obligation in the accompanying financial statements.-
)
~, - l >
e - 37 s 4 i :-'..- - - - .. _____.m_m...m m.m...... ~
__ . _ - . , _ _ _ _ _ _ _ . . _ _ _ _ _ - . , , , _ . _ s___,,,._,.-_____,.-_-_-____,,-,,__ f a 4 ACCOMPANYING IhTORMATION i
$'5 e,
~ .
a 4 h# . d
~
, i L.
;j COMBINING AND' INDIVIDUAL-FUND STATEMENTS
- These statements provide a more detailed view of the " general purpose financial statements", presented ,
in the previous sxtiori. Combinh .tatements t are presented when there is more than one fund of a given ;
- fund type. - An individual fund statement is presented for the general fund to provide detail budgetary -
-comparisons.
1 k T t 6 4 5 6 i 3 J 4
.y .
+
- i. BALANCE SHEETS GENERAL FUND SEPTEMBER 30,1996 AND 1995 CITY OF ALACHUA, FLORIDA 19N 1995 l :- Assets Cash in bank, incloding Certificates of Deposit:
. Police Department Tnist Fund $ 4,887 $ 5,160 Alachua Meadows Account 105,!00 105,500
, O'her 0 270,559 I . Receivables: . Customer Accounts 51,441 0 Utility Taxes 21,489 -19,782: Accrued Interest - 0 264 Other' 3.510 18,588 Due From Other Governments 91.560 92,378 Prepaid Expenses . 70,453 70 497 Total Assets 348,840' 582,728
. W Untdlities and Fund Balance umbilities
' Due to Other Funds 16,795 -0 Accounts Payable -
239,660 374,035 , Occupational Licenses Collected in Advance 1,1,499 8,891 Total WaNiities 267,954 _ 362,026 Fund natance Reserved For Fire Station improvements 60,249 57,931 Designated For Police Department Operations 4,887 5,K0 Undesignated 15,750 136,711
. Total Fund Balance 80,886 199,802 s Total Umbilities and Fund Balance $ 348,840. $ ' 582,728 38 s.
_._._.__....-,.._.u_. . . . , . . . . . _ . . _ _ . . _ . . . _ . - _ _ _ _ _ . -
STATEhfENT OF REVENUES . RUDGET AND ACTUAL ! GENFRAL FUND FOR Tile YEAR ENDED SEPTEhlBER 30,1996, WITII COhfPARATIVE ACTUAL Ah10UNTS FOR Tile YEAR ENDED SEPTEh1HER 30,1995 CITY OF ALACilUA., FLORIDA 1996 1995 Variance Fatorable Budget Actual (Unfatorable) Actual Revenues Taxes Propeny Taxes Cunent 5 740,670 $ 747,771 $ 7.101 5 683,975 , Proper *y Taxes Delinquent 5,000 85 (4,915) 2,667 Franchise Fees 28,000 49,042 21,042 33,057 Utility Taxes 415,000 459,152 44,152 451,240 1.acal Option Gas Taxes 108,000 112,058 4,058 106,307 Total Taxes 1,296,673 1,368,165 - 71,438 1,277,246 Licenses and Permits Occupational Licenses - 18,000 18,467 467 19,901 - Building Permits 60,000 66,441 6,441 62,761 Total Licenses and Pennla 78,000 84,908 6,908 82,662 Intergovernmental 1 Federal Grants: U.S. Department of Justice COPS - Phase I 198,270 89,649 (108,621) 79,798
.U.S. Department of Justice COPS -
FAST 22,000 30,228 8,228 7,919 Alachua County School Board (D.A.R.E.) 21,600 21,600 0 0 Alachua County (CCPO) 59,247 0 '(59,247) 397 U.S. Department of Justice COPS MORE O 28,147 28,141 0 Total Federal Grants 301.117 169,624 (131,493) 88.114 State Grants: DCA Sports Grant 0 0 0 27,600 Solid Waste 9,447. 4,232 (5,215) 9,458 Florida Department of Commerce - Division of Economic Development 36,000 34,367 ' (1,633) 0 Total State Grants 45,447 38,599 (6,840) 37,058 , State-Shared Revenue: Cigarette Tax . 15,454 14,248 (1,206) 14,585 State Revenue Sharing 115,192 125,823 10,631 122,993 Mobile llome Licenses 3,400 4.442' 1,042 2,989 Alcoholle Beverage Tax 5,500 4,458 (1,042) 4,187 Half-Cent Sales Tax 252,317 248,113 (4,204) 224,806 Rebate on Munic: pal Vehicles 3,000 3,064 64 934 Total State-Shared Revenue 394,863 400,148 5,285 370,494 l Total Intergovernmental 741,427 608,371 (133,056) 495,666 l 39
f t STATEMENT OF REVENUFJ!i . BUDGET AND ACTUAL GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30,1996, WITH COMPARATIVE ACTUAL AMOUNTS FOR Tile YEAR ENDED SEPTEMBER 30,1995 l CITY OF ALACHUA, FLORIDA (Concluded) 1996 1995 Yattance Favorable Budget Actual (Unfavorable) Actual Revenues (Concluded) t Charges For Smices Police Services 5 72,600 $ 72,101 $ (499) $ 71,051 Zoning Fees 8,000 7,471 ($29) 10,325
- Sanitation Revenue 18,000 23,046 5,046 22,473-Penalty Revenue ~ 3,700 4,797 1,097 4,173 Mosquito Spraying 25,000 26,088 1,088 25,040 -
Total Charges For Services 127.305 133,503 6,203, 133,062 Fines and Forfeitures Court Fines 180,000 64,576 (115,424) 94,541 Miscellaneous - Interest - 10,000 11.581' 1,581. 10,231 Miscellaneous Revenue 19,010 4,689 (14,32 !) ~ 6,934 Sports Center Revenue 25,000 11,994 (13,006) 16,313
- Administrative Fee . 0 629 629 174 Contributions and Donations . 0 12,500 12,500 28,241 Total Miscellaneous $4,010 - 41,393 (12,6[7) 61,893;-
Total Revenues 5 2.477,43_ $ 2,300,859 $ (176,548) $ 2,145,070
.6)
?
STATEMENT OF EXPENDITURES BUDGET AND ACTUAL GENERAL FUND FOR TIIE YEAR ENDED SEPTEMBER 30,1996, WITil COMPARATIVE ACTUAL AMOUNTS FOR TIIE YEAR ENDED SEPTEMBER 30,1995 l CITY OF ALACIIUA, FLORIDA 1996 1995 Verlance j Favorable i Budget Actual (Unfavorable) Actual l Expenditures Current: General Government Legislative Personal Services $ 44,600 $ $0,431 $ (5,831) $ $2.769 ) Ogerations 29,012 14,627 14,385 19,854 i Capital Outlay 0 5,580 (5,580) 0 Total Legislative 73,617 70,6Ill 2,974 72,623 Executlte Personal Services $2,161 44,255 7,906 41,506 Operations 15,087 14,262 825 15,864 Capital Outlay 0 603- (603) 0 Total Executive 67,248 59,120 8.128 57,370 ' Finance and Administration:
' Personal Services 65,435 99,314 - (33,879)- 77,064 Operations 40,711 38,141 2,570 42,874 Capital Outlay 0 18,648 (18,648) 0 Total Hnance and Administration 106,146 156,103 (49,957) 119,938 Legal and Code Enforcement Personal Services 9,810 17,568 (7,758) 8,068 Operations ,
43,935 43,892 43 46,731 Total Legal and Code Enforcement -
$3,745 61,460 (7,73) 54,799 Comprehensive Planning Personal Services 28,% 5 48,524 (19.559) 33,041 Operations _ 34,575 40,520 (5,945) 27,162 Total Comprehensive Planning 63,540 89,044 (25,504) 60,203 Other General Government Personal Services 0 8,894 (8,894) 0 Operations 26,739 29,623 (2,884) 16,993 Debt Service 4,800 4,623 177 4,623 Total Other General Government 31,$39 43,140 (i1,601) 21,616 Total General Government 395,830 479,505 (83,675) 386,549 Public Safety Law Enforcement:
Personal Services 1,195,887 1,004,177 191,710 903,940 Operations 132,171 195,018 .(62,847) 187,314 Capital Outlay 5,400 18,906 (13,506) 59,741 Debt Service 15,802 15,017 785 0 Total Law Enforcement 1,349,260 1,233,118 116,142 1,150,995 41
STATDIENT OF EXPENDITURES . HUDGET AND ACTUAL GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30,1996, WITil COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30,1995 CITY OF ALACilUA, FLORIDA (Concluded) i 1996 1995 Variance favorable l Expenditures (Concladd) Currents (Concludd) Public Safety (Concluded) ' Fire Control: l Operations $ 166,800 $ 166,472 $ 328 $ 145,604 Protectit e laspections: Operations 42,500 38,701 3.799 37,998 Other hablic Safety: Personal Services 5,304 6,227 (923) 3,408-Operations _ 3,020 2,879 141 3,128 Total Other Public Safety 8,324 9,106 (182) 6,536 Total Public Safety 1,566,8 9 1,447,397 119,487 1,341,133 Physical Environment Personal Services 30,226 17,473 12,753 23,316' Operations _ 18,077 -18,129 (52) 22,009 Total Phyalcal Ens tronment 48,303 35,602 12,701 45,325
- Transportation Personal Services 159,$71 170,545 (10,974) 154,688.
Operations 114,835 138,019 (23,184) 135,838-- Capital Outlay 49,367 51,905 (2,538) ' 13,175 Total Transrortation 323,773 360,469 (36,6%) 303,701 Paris and Recreation Personal Services . 67,I49 75,444 (8,295) 68.515 Operations 65,987 70,427 (4,440) 64,572 Capital Outlay 2,500 -1.300 1,200 50,925 Total Parks and Recreation 135,636 147,171 (i1,535) 184,012 Total Expenditures $ 2,470,426 5 2,470,144 $' 282 $ 2,260,720 42
COMBINING BALANCE SHFJT
' FROPRIETARY Fl]NDS SEFIEMBER 30,1996, WITH COMPARATIVE TOTALS FDR THE YEAR ENDED SEFIEMBER 30,1995 CITY OF ALACIRIA, FIDRIDA Tartey Creek l Waterf Tesets morte w.eer w .m ser wane ser Im n,es Assets Current Assues Cam and Ca* Eg=vaiens s 235.267 s 39.463 s 3.298 s 278.a 8 s (97.m)
Invesmens 90.Os7 s 35.000 :25.0c7 123.292 Recewables (Net of A50wance For Unconecables as Pareneheocany andcame Accomes (545.248) 478.973 29.848 30.820 559.64 714.968 Specul Assessments 22.320 22J20 22.940 Oiher Recewables 17.557 17.537 8.903 Due Frean Oiher Funds $25.490 523.490 273.022 Invensory. At Cost 190.695 16.113 206.808 196.674 Prepaid Power Costs 138.890 138.890 t1.931 Oiher Prepeal Expenses 24.095 24.095 25.625 Unbined Revenue 253.071 253.071 210.237 TotalCurrent Assets 1.976.405 85.424 85.82D 3.298 2.150.947 B.489.tupt Restricted Assets Cash and Cash Equeraients 253.818 336.970 125.123 715.911 434.721 inveseness 384.786 40.000 1.297.Os9 57.164 1.7n.039 a.954.40s Accmed Innerest 5.480 5.480 7.057 Total Restricted Assets 638.e04 403100 t.639.539 182.287 2.910.430 2.396.882 Property, Phant and Equipseema Utility Flam in Semce 6.540.292 3.626.803 4.673.284 2.123.213 16,963.592 16.262.727 (Accomedaned4_ ) (2.101.662) (1.274.954 (1.572.887) (127.122) (5.076.623 (4.630.033 Teest Property, Flaut and Egadpuseus - Cent ime 4m
- 4.438.630 2.351.849 3.1003 97 1.946.091 11.886.967 11.632.892 Other Assets Unaniortired Bond Issue Costs 255.525 0 10s.473 74.556 434.554 455.499 Total Aswts S 7.309.164 $ 2.477.273 $ 4.930.229 3 2.256.232 $ 16.972.898 $ 15.974.374 43
COMBLNING BALANCE SHEET PROPRIETARY FUNDS SEPTEMBER 30,1996, MTIE COMPARATIVE TOTAIS FOR THE YEAR ENDED SEFI' EMBER 30,1995 l 1 CITY OF ALACHUA, FLORIDA i 1 (AY& ) i Turtry Cmk l Waeerf Totals I Wastewater 1996 1995 l E3ectric Water , Wastewater IJabilities amt Fiand Equity Carrent IJabilities, Payable Froes Curred Assets 37 . p $ 1 350.159 $ 258.193 Acceurns Payable 3. 40 0 Note Payable - Cunera Poman 33.400 m er - - n.m =.,75 37.840 27.456 56.847 36.995 3 845 Deferred Credas and Developer Deposas 273.022
$ 441.601 $ 33.350 476.951 Due so Odser Funds 55302 4J.671 f 34.553 12.035 8.714 Accrued CW Absences 678.082 12.830 450.315 35.350 3.176.627 656.189 Total Current f % PayaNe Fresa Currend Assets Camut Lisbetles, Payable Fnum Restricted Assets 462.207 250.435 I6.625 111.368 75.745 454.173 Accrued Irmrest 26.870 251.001 235.001 116.298 16.000 91.833 Bonds Payable - Canent Pomos 137.205 125.910 135.325 830 1.000 '
Casanner Depossa 842J79 82).I i 8 Total CurreM IJabiEties. Payable Frans Restricted Assets 302.054 33.505 204 M 1G2.615 j i Emme-Tenn IJabilities 33.581 0 Note Payable - First National Bank 53.581 124.870 124.870 t15.333 l ,' Deferred Credst - CR-3 E _ -- . Costs 7' W 22.320 22.940 l l Defened Contribuenons-Specist Assessrnents 41.922 l 4a.922 41.922 Defened Contributiove-Ingact Fee 649.000 665.000 l 449.000 l Utgities Revenne Bond of 1979.1 mss Caness Pomne 3.575.272 f 1.840.423 I.545.820 3 386.243
. Utdity Refundmg Revenue Bonds of 1986. Less Corrent Portwa 8.855.167 8.865.458 l
6.089.556 1.661.584 1.104.027 Utility Revenue Bondsof 1993.1 ss Caners Pomon 1.235.000 1.235.000 1.260.000 f Utdity Revenue Boeufs of 1994. Less Cunent Po tnoe l 649.000 3.207.404 2.339.027 14.368.103 14.545.923 Total Laag-Terme Liebsides 8.I72.672 695.385 3.561.920 2.476.992 16387.109 16.025.230 9.352.812 Total Liabilities Fund Equity C== b . 36.774 924J25 961.099 %1.099 Cassomers 37.758 37.758 37.758 Capital Project Fund 439.328 43932F 135.050 304.278 EDA and HUD 427.300 427.300 246.900 180.400 l Farmers Home Adunnistratans 282.454 282.454 0 Other 0 2.147 539 1J65.485 0 738S M I.409.003 Total Contributmas Retained Earmngr 605.248 604J12 l 4.000 565.248 Reserved For Debt Service and C-v.~i. (905.942) (220.760) (2.167395 (2.520.653 (2.043.648) 1.002.932 Unreserved (220.760) (t.562.150 (t.916J41) (2.043.648) 1.042.952 (340.694) l Total Retained Ear ungs(Defen) 585.789 (50.856) (2.043.648) 1.781.858 1.068.300 (220.7to) Total Fund Equity 2.256.232 $ 16.972.895 $ 15.974J74 5 7.309.164 $ 2.477.273 $ 4.930.229 $ T. tar IJabiisses med Fined Equiry 44
COMBINING STATEMENT OF REVENUES, EXPENSES ANT) CHANGES IN RETAINED EARNINGS PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30,1996, MTIH 1 COMPARATIVE TOTAIS FOR THE YEAR ENDED dt.rar21BER 30,1995 l CITY OF ALACHUA. FLORIDA i Turkey Creek l Water / Totals Electric Water Wastewater Wastewater 1996 1995 Operating Revenues Utility Billings $ 5.181.602 $ 269.904 3 451.612 5 241.772 3 6.144.890 $ 5.594.751 j Ilookup Charges and 0:her 53.152 0 0 0 53.152 49.612 j ' Tot.at Operating Revenues 5.234.754 269.904 451.612 5.644.363 241.772 _ 6.198.042 j Operating Expenses Electric Power Expenses: Nuclear Power Generation and Transmission 145.844 0 0 0 145.844 292.158 Purchased Power and 06er 3.106.426 0 0 0 3.106.426 2.557.049 j Treatment 0 64.404 141.151 39.046 244.601 229 352 ' Distribution and Collecnon 203.522 64.610 45.859 8.641 322.632 295.267 Warehousing 34.339 15.107 7.294 0 56.740 59.128 Customer Accounts 95.104 50.07) 38S34 0 184.111 163.186 i General and Administrative 138.948 63.091 59.315 5.842 267.1 % 242 3 96 Depreciation 205.981 106.170 124.680 43.860 480.691 463.018 l Taxes 120.840 0 0 0 120.840 112.575 ) (Total Operating Expenses) (4.051.004) 0 63.455) (417.233) (97.389) (4.929.081) (4.415.329) Operating Income (Isss) 1.183.750 (93.551) 34.379 144J83 1.268.961 1.229.034 i Nonoperating Revenues (Expenses) Special Assessments 0 0 0 0 0 134.977 Connection Charges -0 39.669 4.142 49.170 92.981 83356 Interest Income . 17.037 1.849 100.566 9.694 129.148 143.696 Interest and Fecal Charges (521.549) 0 3.625) (230.901) (152.127) (938.202) (949.750) Amortization of Bond Issue Costs (12.750) 0 (4.866) 0.328) CD.944) CO.915) Miscellaneous income 360 0 0 0 360 363 Total Nonoperating Revenues (Expenses) (516.902) 7.893 (131.057) (%.591) (736.657) (611.303) Income (Iess) Before Operating Transfers 666.848 (85.658) (%.678) 47.792 532.308 617.731 Operating Transfers In (Out) Transfers In 0 107.000 0 0 107.000 119.993 Transfers Out (178.113) 0 0 (107.000) C85.Il3) C98.106) Total Operating Transfers In (Out) (178.113) 107.0m) 0 (107.000) (178.113) (178.!!3) Net Income fless) 488.735 21.342 (96.678) (59.208) 354.191 439.618 Retained Earnings (Deficit), Beginning of Year (2.532J83) 1.021.6!0 C44.016) (161.552) (1.916341) (2355.059) Retained Earnings (Defleit), End of Year $ (2.043.648) $ 1.042.952 $ 040.694) $ C20.760) $ (1.562.150) $ (1.916.341) 45
COMIt!NING !!ALANCE SilEET SPECIAL REVENUE FUNDS FOR TiiE YEAR ENDED SEPTEh!!!ER 30,1996, WITII COh!PARATIVE TOTALS FOR TILE YEAR ENDED SEPTEh!!!ER 30,1995 CITY OF ALACl!UA I'LORIDA Community Totals CDBG Redevelopment 1196 'lVB Assets Cash and Cash Equivalents $ $1,063 $ $1,063 $ 38,134 Duc From other Governments 5 145,245 15,152 160,397 11,667 Total Assets 211,460 1453 66.215 49,801 Liabilities Accounts Payable ll3,K)! -113,501 0 l Deferred Revenues and Credits 15,152 15,152 0 Due to Other Funds 31,744 31,744 0 Total IJabilities 145,245 15,152 160,397 0 Fund Balances Undesignated 0 $1,063 51,063 49,801 Total Liabilities and Fund Balances 5 145,245 $ 66,215 $ 211,460 $ 49,801 46
l Coh!BINING STATEh!ENT OF REVENUES, EXPENDITURES AND CitANGES IN FUND BALANCES SPECIAL REVENUE FUNDS FOR TIE YFAR ENDED SEITEhtBER 30,1996, WITil COhtPARATIVE TOTALS FOR TIIE YEAR ENDED SEPTEhtBER 30,1995 CITY OF ALACIlUA, FLORIDA Community Totals CDilG Redevelopment 1956 1995 Revenues
' Taxes $ 0 $ 0 $ 0 $ 11,667 Interest and Miscellaneous 0 1,262 1,262 768 Grant Revenue 184,503 0 184,503 0 Total Revenues 184 S03 1,262 185,765 12,435 Engenditures Current:
Transportation (184,503) 0 (184,503) O Excess of Retenues Over Espenditures 0 1,262 1,262 12,435 Fund Balances, lleginning of Year 0 49,801 49,801 37,366 Fund Balances, End of Year $ 0 $ 51,063 $ 51,063 $ 49,801 47
l l ADDITIONAL ELEMENTS OF REPORT PREPARED IN ACCORDANCE WITII GOVERNhfENT AUDITING STANDARDS, ISSUED BY TIIE COh1PTROLLER GENERAL OF TIIE UNITED STATES; TIIE PROVISIONS OF TIIE OFFICE OF h1ANAGEMENT AND BUDGET (OMB) CIRCULAR A-128; AND TIIE RULES OF TIIE AUDITOR GENERAL OF TIIE STATE OF FLORIDA
Purvis Gray & Company INDEPENDENT AUDITORS' REPORT ON SCIIEDULE OF FEDERAL AND STATE FINANCIAL ASSISTANCE l lionorable Mayor and City Commission City of Alachua Alachua, Florida l We have audited the general purpose financial statements of the City of Alachua, Florida for the year ended September 30,1996, and have issued our report thereon dated February 14,1997. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards; Gorcenment Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (OMB) Circular A 128, Audits of State ar.d Local Governmenta. Those standards and OMB Circular A 128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material missta'.ement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for vur opinion. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the City of Alachua, Florida, taken as a whole. The accompanying schedule of federal and state financial assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. The information in that schedule has bec.) subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly pesented in all material respects in relation to the general purpose financial statements taken as a whole. G nesv lie rida ,46 ) / M/* ' Certified Public Accountants P.O. Box 23999
- 222 N.E.1st Street
- Cainesville, Florida 32602 * (352) 378 2461 Laurel Ridge Professional Center
- 2347 S.E.17th $;reet
- OCala, Florida 34471 * (352) 732 3872 1415 Piedmont Drive, tast, $uite 2
- Tallahassee, Flcirida 32312 * (904) 385 0554
- FAX (904) 385 9801 MEM8tRbOf AMitCAN ANO FloeiO4 tNstiTUttlOF CttflFitD *VltC ACCOUNTANil Mtu8tt OF AMitlCAN INiflTVit Or CltTWit0 PutttC ACCOUNTANTS PtivAft COMPANeti ANO 5 i C Pt ACtict itC1cNS 48 i.............._....
SCIIEDULE OF FEDERAL AND STATE FINANCIAL ASSLSTANCE FOR THE YEAR ENDED SEPTEMBER 30,1996 CITY OF AIACIIUA, FLORIDA Revenue Recognized (Expenditures Recogniard) CFDA Pass-Thrvegh Award State / Total (State / (Total Number Grantor's Number Amount Federal Match Revenne FederaD (Match) Fw;___ ":m o) l Federal Financial Assistance j 1 U.S. Department of Ilousing and Urban Development Community Development Block i Grant Program
- 14.219 %DB-1E-03-11-02-N24 5 600.000 5 I&*.503 5 0$ 184.503 $ (184.503) $ 0$ (184.503)
U.S. Department of Justice Community-Onented Policing Services - Phase I 16_580 95-DM-BX@l9 198.270 89.9 9 33.935 123.584 (89.M9) 03.935) (123.584) Community-Oriented Policing Services - FAST 16.580 95-CF-WX-3100 252.498 30.228 23.799 54.027 0 0.223) (23.799) (54.027) Ccmmunity Oriented Policing Services - MORE 16.580 96-CM-WX-IC22 39.205 28,147 9.283 37.530 (28.147) (9.383) (37.530) Total U.S. Department of Justice 148,024 67.117 215.141 (148.024) (67.117) (215.141) Total Federal Financial Assistance 332.527 67.117 399.M4 (332.527) (67.117) 099.M4) State Financial Assistance Florida Department of Commerce, Division of Economic Devefooment Highway Deceleration Ime N/A 95/9501B 36.000 ,, 34.367 0 34.367 0 4.367) 0 0 4.367) Total Federal and State Financial Assistance 5 366.894 5 67.117 5 434.011 $ (366.894) $ (67.117) 5 (434.011)
- Denotes state grants and aids .ppnwiixin1.
49
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O e .
- A f
Purvis Gray & Company INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL STRUCTURE BASED ON AN AUDIT OF GENERAL PURPOSE F!NANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITil GOVERNMENT AUDITING STANDARDS lionorable Mayor and City Commission City of Alachua Alachua, Florida We have au'lited the general purpose financial statements of the City of Alachua, Florida as of and for the year ended September 30,1996, and have issued our report thereon dated February 14,1997. In our l report, our opinion was qualified because we were unable to obtain sufficient evidential matter to detennine if property, plant and equipment recorded in the proprietary fund types was fairly presented at cost or estimated historical cost, due to insufficient detail within the City's property records. We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (OMB) Circular A 128, Audits qf State and Local Governments. Those standards and OMB Circular A 128 require the we plan and perfonn the audit to obtain reasonable assurance about whethe7 the general purpose financial statements are free of material misstatement. The management of the City of Alachua, Florida is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments 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 managemen,'s authorization and recorded properly to pennit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may occome inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedure: may deteriorate, in planning and performing our audit of the general purpose financial statements of the City of Alachua, Florida for the year ended September 30,1996, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expre tsing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. Certified Public Accountants P.O. Box 23999
- 222 N.E. Ist Street
- Cainewille. Florida 32602 * (352) 278 2461 Laurel Ridge Profellional Center
- 2347 S.E.17th Street
- OCata, Florida 34471 e t152) 732 3872 1415 Piedmont Drive. Ealt. Suite 2 + Tallahallee, Florida 32312 + (904) 385 0554
- F/ X 1904) 385 9801 Mtuattlot AMitCAN ANDFlotlOAINlfitUtilOf CitTWitDNBLC ACCOUNTANil Mtutta Of AuttCAN INltitutt OF CIRTwit0 PustC ACCOUNTANT $ P4fv Aft CouPANtti AND $ t C. Pt AC Ct SICTIONS 50
lionorable Mayor and City Commission City of Alachua Alachua, Florida INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL STRUCTURE BASED ON AN AUDIT OF GE?'ERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITil GOVERNMENT AUDITING STANDARDS (Continued) We noted certain matters involving the internal control stmeture and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public l Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the City of Alachua, Florida's ability to record, process, summarire, and report financial data consistent with the assertions of management in the general purpose financial statements. They are as follows: o Reconcillation Procedures
- l In preceding audits, we noted that the City had not been reconciling certain accounts on the books of the City to the supporting subsidiary records. For the most part, the two most significant accounts, operating cash and utility accounts receivable were reconciled monthly during 1996.
Ilowever, in these two significant areas, the September 1996 amounts, and subsequent months after year-end were not reconciled due to complications involved in the conversion to a new computer system. In addition, accounts payable, long-term debt, miscellaneous cash and receivable accounts, and certain other accounts were not reconciled to the subsidiary records on a timely basis during 1996. These reconciliations would be normal control procedures to assure the accurate processing of monthly and annual financial information. We again recommend reconciliations of all subsidiary records to control accounts be performed on a timely basis at the end of each month. O Segregation of Duties Due to recent changes in the Finance Department personnel, as well as reassignments of job duties, we recommend the City review and document its accounting procedures and controls over cash receipts, disbursements, utility billing, payroll, and purchasing. Discussions with management indicate that this process has already begun. We are available to assist at your request. O Computer Problems Complications arose during the conversion of the City's financial records to new computer hardware and software, beghming in September 1996. Although the new system appears to be able to meet the City's needs, City personnel did not receive adequate training on the new system and were not provided appropriate oversight during and after the conversion. As a result, accounts and transactions went unrecorded, misrecorded, and unreconciled for several months. Most of the problems have now been resolved and the significant records balanced. Ilowever, the Finance Department continues to require oversight and assistance, especially in nonroutine areas. We encourage the City to continue to monitor these activities and to work with the new Finance Director on these matters.
- Condition reported in preceding annual financial audit report, and not corrected in full during 1996.
51
lionorable Mayor and City Commission City of Alachua Alachua, Florida INDEPENDENT AUDITORS' RFPORT ON INTERNALS CONTROL STRUCTURE IIASED ON AN AUDIT OF GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITil GOVERNMENT AUDITING STANDARDS (Concluded) I A material weakness is a reportable 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 irregularltles in amounts that would be material in relation to the general purpose financial statements i being audited may occur and not be detected within a timely period by employees in the normal coutse of performing their assigned functions. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. Ilowever, we believe all the reportable conditions described above to be material weaknesses. These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the financial statements of the City of Alachua, Florida for the year ended September 30,1996. Additionally, we noted other matters involving the internal control structure and its operation that are not material weaknesses and reportable conditions, and have included thes: comments and recommendations in our management letter" dated February 14, 1997. This report is intended for the information of the City Commission, management, and officials of applicable federal and state agencies, flowever, this report is a matter of public record and its distribution is not limited. February 14, 1997
- Gainesville, Florida 1Mj @
i 52
Purvis Gr_ay & Lompany INDEPENDENT AUDITORS' REPORT ON COMPLIANCE IIASED ON AN AUDIT OF GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITil GOVERNMENT AUDITING STANDARDS lionorable Mayor and City Commission City of Alachua l Alachua, Florida l We have audited the general purpose financial statements of the City of Alachua, Florida as of and for the year ended September 30,1996, and have issued our report thereon dc.ted February 14,1997. In our report, our opinion was qualified because we were unable to obtain sufficient evidential matter to determine if property, plant and equipment recorded in the proprietary fund types were fairly presented at cost or estimated historical cost, due to insufficient detail within the City's property records. We conducted our audit in accordance with generally accepted auditing standards; Gorcenment Auditing Standards, issued by the Comptroller Oeneral of the United States; and the provisions of Office of Management and Budget I.OMB) Circular A-128, Audits of State and Local Governments. Those standards and OMB Circular A 128 reyulte that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. Compliance with laws, regulations, contracts, and grants applicable to the City of Alachua, Florida is the responsibility of the City's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the City's compliance with certain provisions of inws, regulations, contracts, and grants. However, the objective of cur audit of the general purpose financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. Material instances of noncompliance consist of failures to follow requirements, or violations of prohibitions, contained in statutes, regulations, contracts, or grants that cause us to conclude that the 3gregation of the misstatements resulting frorn those failures or violations is material to the general srpose financial statements. The results of our tests of compliance disclosed the following material instances of noncompliance, c - Arbitrage Compliance
- As reported in preceding audits, arbitrage calculations are required and not being performed on certain debt issues of the City, Since no calculations hsve been made, it was impossible to determine whether apons to the federal government were delinquent, and whether penalties had been incurred.
Violations of arbitrage reporting tequirements could affect the tax exempt status of your bonds. We recommend this luue receive your highest priority. Certitled PubilC Accountants P.O. Box 23999 + 222 N.E.1st Street
- Gainesville, Florida 32602 * (352) 378 2461 1.aurel Ridge Professional Center
- 2347 SL 17th Street
- Ocala, Florida 34471 * (352) 732 3872 1415 Piedmont Dr've, East. Suite 2
- Tallahassee, Florida 32312 * (904) 385 0554
- FAX (904) 385 9801 MEMst#5of AMitCAN ANDFLott0A tNsTITUTtsof CttTiritoPUBLIC ACCovNTANTS Mtutra of AMtRCAN IN5flivit CW CiaTrigo pusLIC ACCOUNT ANil PtivAf t COMPANitt AND $ t C. PtACTICI SECTIONS 53
Ilonorable Mayor and City Conunission City of Alachua Alachua, Florida INDEPENDENT AUDITORS' REPORT ON COMPLIANCE BASED ON AN AUDIT OF GENERAL PURPOSE FINANCIAL STA*1DIENTS PERFORMED IN ACCORDANCE WITil GOVERNMENT AUhlTING STANDARDS (Continued) a Fire Contract The agreement with Alachua County, Florida, concerning the provision of fire services requires de City to expend $50,000 on certain fire station improvements by December 31,1995, or return the same amount to the County with interest, by April 1,1996. Neither of these actions appear to have been taken. We recommend the City resolve this matter with the County. l o Retirement System Payments Dming the audit, we noted certain enors on reports submitted to the Florida Retirement System (FRS). In the two months during 1996, which had three pay periods,the retirement payment due for the third pay period was inadvertently omitted from the return. Accordingly, the City owes
$23,437.55 to the FRS We recommend amended returns be filed and the amount remitted to the FRS immediately, o Restricted Cash Shortages - Prior Year
- In preceding audits, we reported shortages in certain restricted cash balances in both the general fund and enterprise funds at September 30,1995, which were in violation of bond and other covenants.
At September 30, 1996, the City had adequate amounts of cash on hand to fund any remaining restricted cash deficiencies, although in a few instances, the required amounts had not actually been deposited into the reserve accounts. The required and actual balances for all restricted cash accounts are reported in the notes to the audited financial statements on par,e 31. We recommend the City fund all restricted cash accounts to their required levels. in addition, we recommend the City continue to monitor its cash position monthly, and continue to restrict expenditures to only essential products and services.
- Conditions reported in preceding annual financial audit report, and not corrected in full during 1996.
We considered these material instances of noncompliance in forming our opinion on whether the City's 1996 general purpose financial statements are presented fairly, in all material respects, in confonuity with generally accepted accounting principles, and this report does not affect our report dated February 14,
' 1997, on those financial statements.
Except as described above, the results of our tests of compliance indicate that, with respect to the items tested, the City of Alachua, Florida complied, in all material respects, with the provisions referred to in the third paragraph of this report, and with respect to items not tested, nothing came to our attention that caused us to believe that the City of Alachua, Florida had not complied, in all material respects, with those provisions. 54
I lionorable Mayor and City Commission City of Alte,hua Alachua, Florida - INDEPENDENT AUDITORS' REPORT ON COMPLIANCE BASED ON AN AUDIT OF GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITII GOVERNMENT Al/DITING STANDARDS (ConcludeQ i llowever, we noted one immaterial instance of noncompliance that we have reported in our
- management letter" dated February 14, 1997, and one instance of noncompliance related to a federal financial assistance program, which we have included in our independent auditors' report on compliance with specific requirements applicable to nonmajor federal financial assistance program transactions, also dated February 14, 1997.
This report is intended for the information of the City Commission, management, and applicable federal and state agencies. Ilowever, this report is a matter of public record and its distribution is not limited. February 14,1997 Gainesville, Florida 'M ' N VN #. // 55
Purvis Gray & Company INDEPENDENT AUDITORS' REPORT ON TIIE INTERNAL CONTROL STRUCTURE USED IN ADhlINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAhlS lionorable hinyor and City Commission City of Alachua Alachua, Florida , We have audited the general purpose financial statements of the City of Alachua Florida as of and for the year ended September 30,1996, and have issued our report thereon dated February 14,1997, in our report, our opinion was qualified because 've were unable to obtain sufficient evidential matter to determine if property, plant and equipment recorded in the proprietary fund types were fairly presented at cost or estimated historical cost, due to insufficient detail within the City's pnperty records. l We conducted our audits in accordance with generally accepted auditing standards; Government Auditing l Standards, issued by the Comptroller General of the United States; and Office of Management and Budget l (OMD) Circular A 128, Audits of State and Local Governments. Those standards and OMB Circular A 128 requim that we plan and perform the audits to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. In planning and performing our audits for the year ended September 30,1996, we considered the City of Alachua, Florida's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the City of Alachua, Florida's general purpose financial statements and to report on the internal control structure in accordance with OMB Circular A 128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated February 14, 1997. The management of the City of Alachua, Florida is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estir"ates and judgments 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, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, Certified Public Accountants P.O. Box 23999 + 222 N.E.1st Street
- Calnesville, Florida 32602 + 052Li8 2461 Laurel Ridge Professional Center
- 2347 5.E.17th Street + OCala, Florida 34471 + (352) 732 3872 1415 Piedmont Drive. East, Suite 2 e Tallahanee, Florida 32312 + (904) 385 0554
- FAX (904) 385 9801 MtusitS OF AWRCAN AND FlotIDA IN5ffruitlOF CitfWitO PUttsC ACCOUNTANil Mtullt OF AMERCAN IN5tiTUTE OF CIRTNED PVttC ACCOUNTANil PRIVATE COMPAN45 AND $ t c Pancitt stCTsDNS 56
lionorable hf ayor and City Commission City of Alachua-Alachua, Florida INDEPENDENT AUDITORS' REPORT ON TIIE INTERNAL CONTROL STRUC'IURE USED IN ADhflNISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAh!S (Continued) Irregularities or instances of noncompliance may neveitheless occur and not be detected. Also, projection of any evaluatic,n of the stmeture to future periods is subject to the risk that procedures may become inadequate beenuse of changes !.t conditions or that the effectiveness of the design and operation of policies and pn>cedures may deteriorate. For the purgue of this report, we havt, c)assified the signincant internal control structure policies and proMures usixi in administering federai f nancial assistance programs in the following categories: General Requirements Specific Requirements Political Activity Types of Services Davis-Bacon Act blatchir.g. Level of Effor' Civil Rights or Earmarking Cash hianagement Reporting Federal Finarial Reports Allowable Costs / Cost Principles Drug Free Vorkplace Act Administrative Requirements For all of the internal control stmeture categories listed above, we obtained an understarding of the design of rtlevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. During 'he year ended September 30,1996, the City of Alachua, Flor:da had no major federal financial assistance programs and expended 55% of its total federal financial assistance under thu following nonmajor federal financial assistance program: a CFDA Number 14.219 - Community Development Block Grant (CDBG) We perfortaed tests cicontrols as required by Oh1B Circular A 128, to evaluate the effectiveness of the design and operation of internal control structure polkie, .md procedures that we considered releva.it to preventinh or detecting material concompliance with specific requirements, general requirements, and requirements governing claims for advances and reimbursements and amounts claimed or used for matching that are appheable to the aforementioned nonmajor program. Our procedures were less in scope than would be necessary to rer ser an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. 57
lionorable Mayor and City Commission City of Alachua Alachua, Florida INDEPENDENT AUDITORS' REPORT ON Tile INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS (Continued) We noted a certain matter involving the internal control structure and its operation that we consider to be a reponable condition under standards established by the American Institute of Certified Public l Accountants. Reportable conditions involve matters coming to our attention relating to significant i deficiencies in the design or operation of the intern-1 control structure that, in our judgment, could adversely affect the City of Alachua, Florida's ability to administer federal financial assistance programs in accordance with applicable laws and regulations. That matter was as follows: l 0 Grants Separate Fund' l In the preceding audit, we recommended the City evaluate the need for separate funds and accounts for the City's grant activities. During 1996, this separate accounting was required, but not done for the CDBO. In respome to a Department of Community Affaits field audit in December 1996, tha City hired us to prepare the necessary entries to transfer CDDG activities to their own fund. Although this requirement has now been satisfied for the CD130, we again recc.nmend that similar procedures be developed for the City's other grards, in addition, we recommend grant fund budgets be approved by Commission Ordinance in the same manner as other activities of the City, in the future, we also recommend the City reconcile grant reimbursement reports to actual expenditures before filing these reports.
- Condition reported in the preceding annual financial audit report, and not corrected in full during 1996.
A material weakness is a reportable condition in which the design or operation of one or more of the intemal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control structure policies and procedures used in administering federal financial assistance programs would not necessarily disclose all matters in the internal control structure that mig' M reportable conditions and, accordingly, would not necessarily disclose all reportable conditior.a irn are also considered to be material weaknesses as defined above, llowever, we believe the reportable condition described above is a material weakness. This condition was considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the financial statements of the City of Alachua, Florida for the year ended September 30,1996. In addition, we did note other matters involving the internal control structure and its operation that we have reported to the management of the City of Alachua, Florida, in our " management letter" dated Febmary 14, 1997. 58
lionorable Mayor and City Commission City of Alachua Alachua, Florida INDEPENDENT AUDITORS' REPORT ON Tile INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS l (Concluded) . This report is intended for the infonnation of the City Commission, managemen , and officials of l applicable federal and state agencies. Ilowever, this report is a matter of public record and its distribution is not limited.
/
a -r7 February 14, 1997 e.,_,,,e. ,,o,,d. , 59
Purvis Gray & Company INDEPENDEh'T AUDITORS' REPORT ON COhtPLIANCE WITil Tile GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAhtS lionorable hinyor and City Commission City of Alachua Alachua, Florida We have audited the general purpose financial statements of the City of Alachua, Florida fot the year ended September 30,1996, and have issued our report thereon dated February 14, 1997. In our report, our opinion was qualified because we were unable to obtain sufficient evidential matter to determine if property, plant and equipment recorded in the proprietary fund types were fairly presented at cost or estimated historical cost, due to insufficient detail within the City's property records. We have applied procedures to test the City of Alachua, Florida's compliance with the following requirements applicable to its federal financial assistance programs, which are identified in the schedule of fedtral and state financial assistance, for the year ended September 30,1996: o Political Activity a Davis Bacon Act a Civil Rights a Cash hianagement a Federal Financial Reports o Allowable Costs / Cost Principles o Drug Free Workplace Act o- Administrative Requirements Our procedurcs were limited to the applicable procedures described in the Office of hianagement and Dudget's Compliance Supplementfor Single Audits of State and Local Governments. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the City of Alachua, Florida's compliance with the requhements listed in the preceding paragraph. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the City of Alachua Florida had not complied, in all material respects, with those requirements. Certified Public Accountants P.0, Box 23999
- 222 N.E.1st Street
- Calnesville. Florida 32602 * (352) 378 2461 t.aurel Ridge Professional Center
- 2347 S.E.17th Street
- OCata, Florida 34471
- t352) 732 3872 1415 Piedmont Drive, East, Suite 2
- Tallahalsee, Florida 32312 * (904) 385-0554
- FAX (904) 385 9801 Mtutitlof AMitCAN AND FtDatDA tN5TITV1tlO8 CttfifitD PVtLIC ACCOUNTANil Mtu8tt Of AMERICAN INSTITUTt Of ClAfifitD PVOLIC ACCOUNfANTS PtivATi COMPANitt AND li C.PitACTitt 5ECTONs 60
lionorable h!ayor and City Commission City of Alachua Alachua, Florida INDEltNDENT AUDITORS' REPORT ON COhfPLIANCE WITil Tile GENERAL REQUIREntENTS APPLICABLE TO FEDERAL, FINANCIAL ASSISTANCE PROGRAh15 (Concluded) This report is intended for the information of the City Commission, management, and officials of applicable federal and state agencies, lloweve- this report is a matter of public record and its distribution is not limited. February 14, 1997 Gainesville, Florida ,/ / 1 61
Purvis Gray & Company INDEPENDENT AUDITORS' REPORT ON COktPLIANCE WITil SPECIFIC REQUIREhlENTS APPLICABLE TO NONh1AJOR l FEDERAL FINANCIAL ASSISTANCE PROGRAh! TRANSACTIONS l lionorable hinyor and City Commission City of Alachua Alachua, Florida We have audited the general purpose financ't! statements of the City of Alachua, Florida as of and for the year ended September 30,1996, and have issued our report thereon dated February 14,1997. In our report, our opinion was qualified because we were unable to obtain suffielent evidential matter to determine if property, plant and equipment recorded in the proprietary fund types were fairly presented l at cost or estimated historical cost, due to insufficient detall within the City's property records. In connection with our audit of the general purpose financial statements of the City of Alachua, Florida and with our consideration of the City of Alachua, Florida's internal control structure used to administer federal financial assistance programs, as required by Office of hianagement and Budget (OhiB) Circular A 128, Audits qf State and Local Gm'ernments, we selected certain transactions applicable to certain nonmajor federal financial assistance programs for the year ended September 30,1996. As required by Oh1B Circular A 128, we have performed auditing procedures to test compliance with the requirements governing types of services 1.llowed or unallowed; matching, level of effort or caimarking; reporting; claims for advance: and reimbursements; and amounts claimed or used for matching that are applicable to those transactions. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the City of Alachua, Florida's compliance with these requirements. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the City of Alachua, Florida had not complied, in all material respects, with those requirements. !!owever, the results of our procedures disclosed one instance of noncompliance with those requirements which was not material to tha general purpose financial statements, but which was material to the nonmajor program. That instance was as follows: Certified Public Accountants P.O. Box 23999
- 222 N.E.1st Street
- Gainesville, Florida 32602 * (352) 378 2461 Laurel Ridge Professional Center
- 2347 S.E.17th Street
- OCala, Florida 34471 * (352) 732 3872
.1415 Piedmont Drive. East, Suite 2
- Tallahassee, Florida 3D12 * (904) 385 0554
- FAX (904) 385 9801 MIM8ttSOf AMitlCAN AND rtOtfD4IN5ftfvttiCW Citif tlD PU8teC ACCOUNTANTS Mf ugti Of AMitaCAN IN571TVil Of CitTWi(D PVOLIC ACCOUNTANT 1 PtfVAtl COMPANiil AND s t C Pt4CtlCt ifCTIONS
, 62
, lionorable Mayor and City Commission City of Alachua Alachua Florida INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITil S?ECIFIC REQUIREMENTS APPLICA31.E TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS (Concluded) o Grant Expenditures l We were unable to obtain documentation that all amounts reported as expended under the $39,205 COPS MORE grant program had actt a!.', been incittred, and we were unable to verify that the matching requirements of that program had been satisfied. In addition, the grsnt contract was signed by all parties, and all expenditures were incurred after the grant period had expired. Therefore, we were unable to determine the precise amount of unallowable or questioned costs. We recommend the City obtain the appropriate documentation for all federal and matching expenditures under this program, and refile an amended report with the grantor agency, if actual expenditures differ from the amounts originally reported. This report is intended for the informat ion of the City Commisalon, management, and officials of applicable federal and state agencies llowever, this report is a matter of public record and its distribution is not limited. February 14, 1997 - Gainesville, Florida g j M Os 63
Purvis Gray & Company INDJPENDENT AUDITORS' REPORT ON COh1PLIANCE WITII REQUIREMENTS APPLICABLE TO STATE GRANTS AND AIDS APPROPRIATIONS lionorable Mayor and City Commission City of Alachua Alachua, Florida We have audited the general purpose financial statements of the City of Alachua, Florida as of September 30,1996, and for the year then ended, and have issued our report thereon dated February 14, 1997, In our report, our opinion was qualified because we were unable to obtain sufficient evidential matter to determine if property, plant and equipment recorded in the proprietary fund types were fairly presented at cost or estimated historical cost, due to insufficient detail within the City's propeny records. 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 statements are free of material misstatement. Compliance with laws, regulations, contracts, and grants applicable to the City of Alachua, Florida is the responsibility of management. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of the City of Alachua, Florida's compliance with certain provision oflaws, regulations, r . ntracts, and grants applicable to state grants and aids appropriations identitled in the schedule of federal and state financial assistance, pursuant to Section 216,349, Florida Statutes, and Chapter 10.600, Rules of the Auditor General, llowever, 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 or Chapter 10.600, Rules of the Auditor C=neral. This report is intended for the information of the City Commission, management, and officials of applicable state and federal 63encies. Ilowever, this report is a matter of public record and its distribution is not limited. a s lie F o da .M y M D Certified Public Accountants P.O. Box 23999
- 222 N.C.1st Street
- Calnesville, Florida 32602 * (352)378 2461 Laurel Ridge Professional Center
- 2347 S.E.17th Street
- OCata, Florida 34471 * (352) 732 3872 1415 Piedmont Drive, East Suite 2
- Tallahassee, Horida 32312 * (904) 385 0554
- FAX (904) 385 9801 MEM3tt$ Of AMERICAN ANDFtORIDAINSTITUttlOf CLRTrit0 PUtttC ACCOUNTANTS MM** " htit CAN IN5flTVYt of CittPitD PVltlC ACCOUNT ANTS Ptiv Af t COMPANatl AND i t C. PEACilCE SECTIONS 64
Purvis Gray & _ Co_mpany MANAGEMENT LETTER lionorable Mayor and City Commission City of Alachua Alachua, Florida We have audited the financial statements of the City of Alachua, Florida, as of and for the fiscal year h ended September 30; 1996, and have issued our report thereon dated February 14, 1997. In our report, our opinion was qualified because we were unaHe to obtain sufficient evidential matter to determine if property, plant and equipment recorded in the proprietary fund types were fairly presented at cost or estimated historical cost, due to insufficient detail within the City's property records. We have issued our independent auditors' report on internal' control structure and our independent auditors' report on compliance with laws and regulations both dated February 14, 1997. Disclasures in ? those reports, if any, should be considered in con) action with this management letter. We conducted our audit in accordance with generally accepted atiditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Additionally, our audit was csuducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General, which govern the conduct ofIc.:al yovernmental entity audits performed in the state of Florida and require that certain items be addressed in this letter. The Rules of the Auditor Gener, t t M - 10.554(1)(f)l.) require that we ccmment as to whether or not inaccuracles, irregularities, shotos det,mtions, and/or violations of laws, tules, egulations, and wn ractuel provisions reported in the preceriing annual financial audit report have been corrected. Items of thh nature, which have not been corrected, are indicated by asterisk (*) in various reports in preceding . p;,es of this document. The Rules of the Auditor General (Section 10.554(1)(f)2.) require that we also comment as to whether or not rxommendations made in the preceding annual financial audit report have been followed. Prior year recommendations which have not been implemented in full are indicated by asterisk (*) in this letter. As required by the Rules of the Auditor General (Section 10.554(1)(f)3.), the scope of our audit included a review of the provisions of Section 218.503(1), Florida Statutes, " Determination of Financial Emergency." :In connection with ^ur audit, we determined that although the City of Alachua Florida, technically satisfied one of the financial emergency conditions described in Section 218.503(1), Florida
- Statutes, it was our opinion that the City is not in a financial emergency at September 30,1996. This concludon was determined as follows:'
Certified Public Accountants P.0, Box 23999 e 222 N.E. Ist Street
- Gainesville, Florida 32602 * (352) 378-2461 Laurel Ridp Profe$sional Center
- 2347 S.E.17th Street
- Ocala, Florida 34471 * (352) 732 3872 l
1415 Piedmont Drive, East, Suite 2
- Tallahassee, Florida 32312 * (904) 385 0554
- FAX (904) 385-9801 '
MEMitk5 OF AMIRICAN AND FLOR 0A BNSTITUTilOF CERTIFitD PUSUC ACCOUNTANT 5 MtwatR OF AMERICAN INSTITUTE OF CERTIFtt0 PUSUC ACCOUNTANT 1 PRrvAft COMPANit$ AND 5 t C. PRACTict SECTioN5 65 '
a _ e I
% 3 , f Honorable Mayor and City Commission'
( ' ; City of Alachua, Floridai 1 - ~ JAlachua, Florida!
= ~
MANAGEMENT LETTER o , (Continued)I , O C Rules of the Auditor General, Chapter 10' 554(1)(f)(3) require us to state whether the City of Alachua,- Florida, is in a state of financial emergency'as a consequence of conditions described in Section l
- 218.503(1), Florida Statutes.L One of the conditions described in that statute include " budget deficits ;
; for two successive years."1The definition of a " budget deficit" is determined by the Auditor General- '
. and has been revised three times in the last four years. The current definklon for a " budget deficit" s
- is as follows: .
31 A
- budget deficit" eilsts when an unreserved or total fund balance or retained earnings deficit L -
exists for which sufficient resources of the local governmental entity are not available to cover the -- ( . : deficit and the local-governmental entity had not,;through hs budget process, made sufficient O' increases in revenues or reductions in expenditures (expenses) to prevent the occurrence of the ' f' deficit..." ' ~ The City's combined balance sheet reported a t'o tal unreserved retained earnings deficit of $2,167,398 atf September' 30,51996lf and a' total unreserved- retained earnings deficit- of, $2,520,653 at
, ' September 30,1995. x Accordingly, the City does have total retained earnings deficits for two suwde years ;In addition, the City does not have " sufficient resources to cover"- a $2 million
&M :nd will not have in the near future) Therefore, the City of Alachua, Florida, appears to sCfy Ac revised definition of a budget deficit. -
. It should be noted, however, that these deficits were generated in large part, by three bond refundings c >
- over the last fourteen years which generated economic gains to the City,= but produced accounting losses totalling $2,753,615. . The nature of refunding transactions is such that economic gains ofter. ,
result in accounting losses. It is our opi_nion that economic gains of this type should not cause the
. City.to be placed in a " financial emergency" sta'us3 t Considering this, and reported utility fund net income of $354,119 for 1996 and $439,618 for 1995 (the two best years in'the last fourteen years),
swe concluded that the City of Alachua, Florida, is' not in a4 state' of financial emergency ats 7September 30,1996.' However..we would advise the City to buget and conduct its' activities to [ knprove its financial poshion to every extent possible. L As required by the Rules of the Auditor General (Section 10.554(1)(f)4.), we determined that the financial
)informati6n for the City of Alachua, Florida, for the fiscal year ended September 30.1996, included in g' : the financial report filed with the Florida Department of Banking and Finance pursuant to Section 218.32,-
7 Florida' Statutes, ~ls in agreement:with' the-annual financial audit report for the fiscal' year ended
< September 30,1996.-
$ The Rules of the Auditor General (Sections-10.554(1)(f)6., 7., 8., and 9.) require disclosure in ths management letter of the following matters if not already addressed in the auditors' reports on the internal
-66 b ?
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Honorable Mayor and City Commission? a y L City of Alachua, Florida L - ' J Alachua, FloridaL , x ,
+ ;
4
' ~
MANAGEMENT LETTER ;
.c
' (Condnued) '
j 1 control structure or compliance: ' recommendations to _ improve _ financial management, accounting .. . procedures', and internai controls; violations of laws, rules, and regulations which may ~or may not j:" (materiallyiaffect the financial statements:-illegal or improper expenditures which may or may not materially affect the financial statements;: improper or inadequate accounting procedures (e.g., the i
; ctnission of required disclosures from the financial statements); failures to properly record financial ,
c ^ [ transactions; and other inaccuracies, irregularities, shortages, and defalcations discovered by the auditor. - -! LCertain of these matters are disclosed on the preceding pages in internal control and compliance reports, i
. In addition, we have the following observations and recommendations:-- -
[Q Gainesville' Regional Utilities (GRU) Contract * ' In preceding audits, we questioned the calculation methodology of the transmission and backup
- , energy charge on the City's power bill from GRU, under Section 9 of the GRU contract - We 'also > i
~ questioned the calculation methodology of the " alternate calculation" of this charge (the Exhibit 4 method), specifically.the rationale for a ratchet charge in a backup energy contract. We have not E s been satisfied that these charges are being calculated appropriately. In' addition, overall cost of power
'under the GRU contract appears high compared to industry statistics ($0.0517 per kwh purchased)c tWe recommend the City approach GRU for an explanation of the transmission and backup energy
- ' charge, and to solicit possible relief in the overall cost of power to the City, O Grants - Audit Fees * - ~
h As reported in preceding _ audits, since all federal and state' grant programs require special audit .
~
i procedures to be done in accordance with Government Auditing Standards, the' Single Audit' Act of - _ 1984, or other rules and regulations; many of these grants will reimburse the City for audit fees or other indirect costs incurred by the City. Despite our recommendations, no provision for audit fees
- . - has been included in.any recent grant to the City. We again recommend the City pursue this a
~ possibility when negotiating grant contracts.- '
1 . 9 Personnel PayLRaines , ? ; We were unable to locate a current PBA contract, and a current po_licy for other employees regarding a the appropriate methodology for calculating merit Llongevity,n and step. raises. Based on L documentation we did have,- it appeared that minor errors may have been made in the calculation of
?certain raises,' We recommend the City review this matter and formalize procedures and contracts
- in this area.
W Property and Equipment Records - . l The property and _ equipment subsidiary records of the C.ty were transferred from Lotus spreadsheets . <
- ; to the new computer system during conversion. _ Hwever, no additions ~or disposals have been posted lto this system for 1996'or 1997. We reccmmend t.te City establish procedures for updating and maintaining these property records, -
1. 67 f t w t g h w , ,,n- y +-p. ~ ~ e - - , -a , , p. me, - . + , - ->+,9
Honorable Mayor and City Commission - City of dkchua. Florida
- Alachua, Flotida MANAGEMENT LETTER (Continued)
. O Sales Tax
- In preceding audits, we reported that there was an ovmpayment of approximately $7,691 of sales tax for January to May of 1993, We recommended the City seek a refund for this amount, which has
. not been done. We encourage the City to' follow up on this matter.
~
cC Redevelopment It .is our understanding '. hat the 1996 community redevelopment taxes due the City totalling
$15,151.70 are being held by the Alachua County Tax Collector pending receipt of a legal description of the redevelopment area and cenain other information requested of the City in a letter dated October - 17,1996. We recommend the City follow up on this matter in order to access these available funds, i c Wastewater Overdraft The City's wastewater fund operates at a loss annually and has accumulated an overdraft position in.
its unrestricted cash of $441,601 at September 30,1996. The City maintains operating cash for all funds in a pooled cash account, so the overdraft position represents amounts due other funds of the City, not amounts due the bank. However, we recommend this interfund.Ilability be eliminated l through Commission action by authorizing one-time and annual transfers from other funds to support these losses. The alternative would be to raise wastewater rates so that the fund is self supporting. O General Fund Operations The general fund experienced an operating loss (excess of expenditures over revenues) of $118,916 - for the year ended September 30,1996. This loss was due primarily to fines revenues and cenain
. other revenues falling shon of budgeted amounts. The loss climinated any reserves which the general
, fund had accumulated over the last two years, and left an unreserved fund balance in the general futid
. at September 30,1996, of only $15,750,- In preceding audits, we recommended the City attempt to boost general fund reserves to a level which could cover contingencies, at least $300,000. We again make that recommendation, and also recommend the City monitor actual results versus budgeted amounts on a monthly basis. Revenue shortfalls must be met by reductions in appropriations.
O Conduit Debt and Defeased Debt
- Beginning next year, the City will be required to disclose information on certain conduit debt issues of the City. In general, conduit debt represents debt issued by the City for the benefit of a third party, e.g., hxiustrial development bonds. We recommend the City assemble this information for the upcoming year. In_ addition, we also recommend the City assemble similar information on
'defeased debt issues, also a required disclosure.'
d 68-
Honorable Mayor and City Commission City of Alachua, Florida
. Alachua, Florida MANAGEMENT LE' ITER (Concluded) .
The Rules of the Auditor General (Section 10.554(1)(f)l0.) also require that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed
- in t!'e management leiter, unless disclosed in the notes to the financial statements. The City of Alachuac Florida, was established in 1908 under the legal authority of Chapter 165. Florida Statutes, in addition,
. the annual financial audit report for the City of ~Alachua, Florida, also includes the accounts and.
transactions of the following component unit: Component Unit Presentation Legal Authority Public Finance Authority for Affordable Housing Blended - Chapter 189 Florida Statutes i Furthermore, the annual financial audit report for the City of Alachua, Florida, also includes the accounts
; and transactions of the following. entity, which does not satisfy the definition of a component entity because it is not legally eeparate from the City.
Entity Presentation City of Alachua Redevelopment Agency Biended - J This management letter is intended for the information of the City of Alachua, Florida, management, and the State of Florida, However, this report is a matter of public record and its distribution is not limited. . .We wish to take this opportunity to thank you and your staff for the cooperation and courtesies extended to us during the course of our audit. -Please let us know if you have any questions or comments concerning this letter, our accompanying reports, or other matters. = February 14, 1997 O Gainesville, Florida - , 6v}AAML) ; . 9 4 69
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/ 9 [ $N(([ i j' ALA0HUA COUNTY, FLORIDA
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P.O. BOX 9 ALACHUA. FLORIDA 32616 0009 .. 904/462 1231 DEPARTMENT Finance Director FA_X 904/4021985 June 30,1997 The Honorable Charles L Lester, Auditor General
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Office of the Auditor General P.0, Box 1735 Tallahassee, FI; 32302-1735
Dear Mr,
Lester: H
. Please find enclosed two copies of the Financial Statements and Independent Auditors' Reports for the City of Alachua as of 09/30/96. These reports were approved and accepted by the City Commission on June 2"',1997.
Our City accepts the findings of our external Auditors', and the City Commission, Management, and staff -
- are making positive changes to implement these findings. As the new Finance Director for the City, it is
. my responsibility to implement corrections and improvements to the City's financial procedures, and I have already seen to the correction of many items mentioned in the Audit Report.
Please be advised that the City Commission and City Management, along with our extemal Audnors, do - not feel that the City should be considered in a financial emergency at this time.- The City has previously L been considered to be in a financial emergency due to the appearance of a " budget deficit".which would satisfy the current definition in FSS 218.503(1). It should be noted, however, that these deficits were-generated in large part by three bond refundings over the last fourteen years which ' generated economic gains to the City, but produced accounting losses.' Please reference the Management Letter, pages 65-67,
' that explains this in detail.
Please contact me if you require further clarification. Sincerely,- isa Absher Finance Director C.H. HATHCOCK. SR. Mayor JAMES A. LEWIS 1 JIMMY SWICK ll PATRICK MURPHY . ORIEN A. HILLS Wce Maynt' Commissioner Commissioner Commissioner
- CH ARLE0 M. MORRIS NEIL A. MALPHURS City Manager . -City Attorney}}