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Annual Financial Rept for Yr Ending Sept 1978
	ML19309E165
Person / Time
Site:	Crystal River
Issue date:	01/26/1979
From:	; LEESBURG, FL
To:	;
Shared Package
ML19309E142	List: ML19309E140; ML19309E148; ML19309E151; ML19309E155; ML19309E160; ML19309E165; ML19309E172; ML19309E174;
References
	NUDOCS 8004180491
	Download: ML19309E165 (92)
	v • d • e

._ - - _ _ - _ -. __ _____ _ __

l 9

l ANNUAL FINANCIAL REPORT Fiscal Year Ending September 30,1978 City of Leesburg Floride l

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CITY OF LEESBURG, FLORIDA CITY COMMISSIONERS AND OFFICIALS SEPTEMBER 30, 1978 Mayor-Commissioner ............................ Joe H. Sellers Mayor-Commissioner Pro-Tem .................... Charles C. Strickland Commissioner .................................. Jack K. Bradley Commissioner .................................. Burton Brown Commissioner .................................. Edwin M. Merrell City Manager .................................. Calvin E. Glidewell City Clerk / Finance Director ................... James C. Schuster City Attorney ................................. R. Dewey Burnsed I

i BROOKS, BROWN AND SHUMACKER Certified Public Accountants Leesburg, Florida

CITY OF LEESBURG, FIDRIDA Exhibit Report of Certified Public Accountants Financial Statements:

Combined Balance Sheet - All Funds ................ A General Fund - Statement of Revenues, Expenditures, Transfers and Fund Balance ........ B Federal Revenue Sharing Trust Fund-Statement of Revenues, Expenditures, Transfers and Fund Balance ...................... C Special Improvement Fund - Statement of Revenues, Expenditures, Transfers and Fund Balance .................................... D Public Improvement Revenue Certificate Sinking Fund - Statement of Revenues, Expenditures, Transfers and Fund Balance ........ E Capital Projects Fund - Statement of Revenues, Expenditures, Transfers and Fund Balance ................................ F X-Ray Equipment Fund - Statement of Revenue, Expense and Retained Earnings .......... G X-Ray Equipment Fund - Statement of

, Change in Financial Position .................... H

) Utilities Systems Funds - Combined Balance Sheet ................................... I Utilities Systems Funds - Statement of Combined Revenues and Expense ................... J Utilities Systems Funds - Analysis of Changes in Reserves, Contributions and Retained Earnings. K Utilities Systems Funds - Statement of Changes in Combined Financial Position .................. L Employee Retirement Funds - Statement of Cash Receipts and Disbursements ...................... M j Municipal Police Officers' Retirement Trust Fund - Analysis of Changes in Fund Balance and Retirement Reserves ......................... N Municipal Firemen's Retirement Plan - Analysis of Changes in Fund Balance and Retirement Reserves ........................................ O Retirement Plan for General Employees of the City of Leesburg - Analysis of Changes in Fund Balance and Retirement Reserves . . . . . . . . . . . . . . . . . P Statement of General Fixed Assets . . . . . . . . . . . . . . . . . Q Notes to Financial Statements Schedule Supplemental Schedules:

Investments - All Funds ........................... 1 Utilities Revenue Fund - Schedule of Budgeted and Actual Operating. Revenues ................... 2 Utilities Revenue Fund - Schedule of Budgeted and- Actual Operating Expenses (Exclusive of Depreciation) ................................... 3 Utilities Revenue Fund - Schedule of Utility Plant-In-Service and Depreciation ............... 4<

t

I BROOKS, BROWN AND SHUMACKER CERTiflED PUBLIC ACCOUNTANTS 215 North 3rd Street e Leesburg, Florida 32748 Teleptione (904) 7374682 )

MEMSERS: W. THOMAS BROOK 5, C.P.A. ;

B. ALLEN BROWN, )R., C.P.A. I Florida Institute of Certified Pulslic Accountants Anserican Institute of Certified Pulslic Accountants 1. CECIL 5HUMACKER, lit, C.P.A. !

January 26, 1979 l The Honorable City Commissioners, City of Leesburg, Florida We have examined the financial statements of the various funds and account groups of the City of Leesburg, Florida for the year ended September 30, 1978, listed in the foregoing index, except as explained in the following paragraph. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auliting procedures as we considered necessary in the circumstances.

As described in Note 4 we were unable to substantiate the amount due from the Group Annuity Contract carrier for the Municipal Firemen's Retire-ment Plan and Retirement Plan for General Employees. In addition, the un-funded actuarial deficiency of these pension funds has not been determined as of the balance sheet date pending a final accounting by the Group Annuity Contract carrier.

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 substantiate the amount due from the Group Annuity Contract carrier and the unfunded actuarial deficiency of the above mentioned pension funds, the aforementioned financial statements present fairly the financial position of the various funds and account groups of the City of Leesburg, Florida at September 30, 1978, and the results of operations of such funds and the changes in financial position

.of the Utilities System Funds and the X-Ray Equipment Fund for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year, o

Brooks, Brown and Shumacker

CITY OF IJEStBIO. FifPEA CCatBINED BALANCE SIGIT - ALL FUNDS IIRIBIT A SEPPDUER 30, 1979 ECGERIC PUBLIC IEYEI4 PENT AININISTRATION FE2RL IMPNUVEMENT CAPITAL PIEMETS PJNDS E7ENUE REFEWE MUNICIPAL NfMICIPAL ETI1EMENT SHARING CERTIFICATE CUL1 TRAL I-RAT ITTILITIES POLICE FIRDEN'S PMJE FCE CEXERAL r:muran t GENERAL TMJST SINKING llECREATICII DISPIAT EQUIPMDIT SYSTDt RETIRDENT fETIllEMENT CENm f. FIIED I4NG 155f F'JND FMED FUND C'3IPIE.I PACTLITY P"ND F"NDS TiteST P1tD PIAN DtPIETES ASSETS IEBr ASSETS CURMNF ASSETS Cash .............................. . . ..... .. . $ 141.806 $ 36,155 $ - 8 - $ = $ - $ 639,175 $ - $ - $ - $ = $ -

Investmente (Note 1) (Schedule 1) . . . . . . . . . . . 96 598 54,197 - - - - - - - - -

Due From Other Coverments ..... . . . . . . . . . . . . . . . 41,760 19,116 - 6,4% 24.935 - - - - - - -

Amunto Receivsbier Custmer Accounto (Not of Allousnee for Unceusetable Accounts of $14.515) ......... .. - - - - - - 938,709 - - - - -

Other Accounts Receivable (Not 9f A12cusace for Uncellectable Accounts of $36.873) ....... . 23,530 - - - - - 17,874 - - - - -

Not Investment in Direct Financing Imase (Note 3) . . 55,659 - - - - -

Inventory (at First-In. First-Outs Coat 4eneral Fund, Average Cost-Utility Fund)(Wote 1)...... . . 5.519 - - - -

500.622 - - - - -

Amounta Due From Other runde ...... ... ...... . .. 111.6m - - - - - LL7.618 - - - - -

Total Current Assete .. . . . . . . . . e,ao.aao 109.L68 -

6.L96 2k.93 5 55.659 2. %L.018 - - - - -

IESTRICTED A32TS (NCrrE 2):

Cash............................................ 21,724 - 4,984 - - - 482,229 151 27,978 1.538 -

Funds with Fiscal Agent (Note 1) ......... ......... - - - - - - 555,091 - - -

Investmente (Note 1) (Sebedule 1) .. . . . . . . . . . . . - - 80,000 - - - 3,266,uS 343,079 100,330 271,457 - -

Ae ' rued Interest Receivable ... . . .. . .. . . . .. . ...... - - 1,583 - - -

53.332 5,861 1,086 8,205 Sanitary Sewer Aeoesamente Receivable ........... ... - . - - - - 6,678 - -

Ibe Fru Gr%n Anrmity contract Carrier (Note 4) . - = = - -

195,502

- - - 508,997 -

Amounta Ike Fra Other Funde . . ... . . . . . . . . . .. .. . . - - 13,260 - - - 2,000 882 17,347 Annuntas Due Free Federal Coverrment (EPA) ... . . . . - - -

2.385 - -

Amount Receivable Frru Bank o' Clearwater .. . .. ..

18.626 - - - - -

Total Roetricted Aseete .. ..... .. .. . 21.7$ $ - - -

21.72L -

E - - - L .LT .816 349.9'1 M .23 796.582 - -

UTILITY PIANT IN SERFICE (At Coet, Not of Accumulated De.3 rect stans $5,M,.*31)(Note 1) (Sch,dule 4) . - - - - - -

I?.052.975 - - - - -

CEur91Y. FIIED ASSETS (at Cost) (Note 1) (Exhibit Q) . . - - - - - - - -

LQ29.887 CTHER ASSETS:

Pet Investment in Direct Financing Imase (Note 3) ... - - - - - 197,269 - - - - -

Unemor*ised Discount on Series 1977 Utility Revenue -

Bond e (Note 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. - - - - - - 235,219 - - -

Deferred Iseue Coste - Series 1M7 Utility Revenue - -

Bond] (Note 1) . . . . . . . . . . . . . , . . . ........ . .... - - - - - -

222.700 - - - -

Total other Assete . .. . . . . . . . . . . . . - - - - - 1p.h9 457,919 - - - - -

AIGJUNT3 AVAIIABIE FOR CENERAL IINO-TElgt DEBT RETI1EMBIT . . . . . . . . . . , . . . . . . . . . . - - - - - - - - - - - a6 A6A

. AMITr3 TO IE PROFIIEP FOR GENERAL IDIO-TERM IEBT ETIIEMENT ... . . .. . . . , . . . . . . . . . . - - - - - - - = = - -

338.434 TC'rAL ASSETS . . . . . . . . . . . . . . .. $ 6L2 MLL $ 3D9.L68 $ 99.827 $ 6.k96 $ 21.915 $ 252.928 $21.162.?La $ 319.971 $ tL2.211 8 786.582 $ 8.029.8er? $ L25.000 I.IABILITIES. IESIH7ES. FUND B&MNEES AND RETAIED EAfslINL4 CURIENT LIABILITIES:

Public Improvement Revenue Certifiestes -

Amounto Due Within One Year (Note 2) ..... .. . $ - $ =

$ = $ - $ - $ = $ = $ - $ = $ - $ - S 30,000 Mortgage and other Notes Payable - Amounto Due Within One Tear (Note 2) . . .. . . . . . . . . . - - - - - 55,659 - - - - - 2,000 Accounta Payable . . . . . . . . .. . . . ... .. .. .. 91,262 - - - ),219.345 1,007 Accmed Wages and Payroll Tax ....

- - - 5,409 - -

. . . . . . . . . . 70,726 - - - - - - - - - . -

Accrued Interest Payable .. . . . . . . . . . . . . . . . - = = - - 766 354,995 - - - - -

Customer Donosite .. ...... . . . . . . . . . . . . . . .. - - - - - - 343,395 - - - - -

Due sa Other runde . .... . .. .. .. . . . . . . . . . . . . . 16,681 40,161 - 6,496 7 -

714.580 - - 17,193 - -

Prenaid Licensee . . . . . . . . . . ... . . . . . . . 28.683 - - - = = - - - - - -

Custmer Advances for Construction . . . . . . . . . . . - - - - - - 99,654 - - - - -

Other Current Liabilities ............ . .. . .. . 10.891 - - - 26,9- 8 -

11.127 - - - - -

Total Current Mab111 ties . .. .. .. 21a.2Ls E - 6.196 2k.9 5 56.&25 2.761.096 Lam 12.6C

- - .00D DEFERilED IETINCE . .... .... ...... . . . . . . . . . . . - - - - - -

8.678 - - - - =

cp p . .

Fase 1 (Continued)

O c Ju @JU . 3

CITY OF 12XSist'lC. F*.4'RIDA CGIBINED BALANCE SHEET = ALL FUNDS IIRIBIT A SEPT""* 10. 1998 ECJGIC FUBLIC MYIIIf9ENT AIMDEISTRATION FIZERAL DEPluBMENT CAPITAL PE TCS F"NDS MFEMUE lEVENUE IL111CIPAL ElffCIPAL MTIlWWIT SHARDIG CENTIFICATE CULTURAL I. RAY UTILITIES POLICE FI 'S P1AM F0g tammaa r m CENERAL TEST SINEDIG IECMATICEI DISPLAY E3JIPMiff SYSTDt ETIMIENT MTIMlWIT CERERAL FIMD IIEC TW F"uS P'1ED P.11D CtErtII PACILITY Ft1tD P"ND5 TEST P'JMD PIAN BFf m ***M EEur TMA1. AMS (Pmard ) . ... ..... . .. ............... $ 6L2.5LL $ 109.L68 $ 99.827 $ 6. L*6 $ 21.915 8 252.928 $4 mal 2hg 4 1&9.971 $3/mbaln1 8 ?e6.5a2 $ 8.W.M? $ L25.tED v ta nem. nr**1t!. F'3ED BAIANr?.S AND mam EAEfINCS f Pmard).... . . . . . . . . . . . . . . $ 238.2L5 $ LO.161 8 -

$ 6.L% $ 2L.915 8 56.L25 $ 2.7tl.77L $ -

$R $ 22.6M $ . $ 12.000 IDIG-tem IEBf . Ammate Due after One Year (Note 2):

Utiliti es Revenne Bonds . . . . .. . . . .( . . . . . . . . . . . . . . . . . . . . . - 12,020,000 . . . . .

Publi n I.,. . . ^ Revenue Certificates ..... ... . . . . - - - . . . . .

M000 Nortgnes and Other Notes Payable ............... . . - - - . . !99.269 - . . . .

Total Imns. Tern Debt .. ..... .. . .... - - - - - 177.M9 12.020.000 - . . .

ESERVES. CEEf?RIBfffCIES. FUND BAIAIICES, AllD RETAINED EAIBI!!IGS (MFICIT):

Reserves-Reployee Retirement System . .... . .. ... . . . . . . .

212.6 % 577,629 1,24,000 . .

Investment la Generst Piand Assete ...... ...... .... - . - - . . . . . . 8,039,887 -

Reserve for Group Insurance Premium Incrosse .. . ... 21.724 . . . . . . . . . . .

Aseerve for Inventory . ... . . .. . . . . . . . . . . . . . . . . . .. .. . . 5,519 . . . . . . . . . . .

Reserve (Defielt) for Reverme Bond Debi Service ..... . . . . . . ( 11.354,633) . - . . .

Reserve for Revernae Iked Retir=unent ......... . ... . . . . . . . 80f. 957 - . . . .

Reseroe for Revenne Iked ContingencF .. . . . . . . . . . . . . . . . . . 472,036 - - . . .

Reserve for Authorised Construction ........ . ...... . . . . . - 2,089,744 . . . - .

Contributions fran Gastamers and Subdividers ... . . . - . . . - 524,351 . . . - .

Contribution from Federal Goverrament .. .... . . . . . . . . . . - 1,037,935 . . . . -

Pad Balance (Deficit) ... ..... . ......... ..... 377,056 69,3Crt 99,827 - . . 137,279 ( 236,393) ( 500,020) . .

Retained Isrnings (Deficit) ...... . ........ . ......... . . . . .

( .766) 16.09A 586 . - - - .

Total Peeer-es, Contributions, Pund Bizann , and Rossined Earninge ... .... Lot.299 69.scr 99.s27 . .

(J) 9.67e.971 119.971 3kL33di 761.9ao a.ca9.as7 -

TOTAL I.TanTLITIES, ESERTES, CONTRI.

IL*f!ONS, PUlfD BAIANCES AND RETADED EARNINas .. ... . . . . . . . . . . .. . . ........ 4 6L2.5LL $ 109.L6e 8 99.827 8 6.196 8 21.915 4 2s2.92e a2A LA2.?La 8 36tg2 $3l,La&1 8 7e6.5a2 $ s.ca9.arr $ L25.000 Page 2 (Concluded)

J:3

' EXHIBIT B CITY OF LEESBURG, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS, AND FUND BALANCE YEAR ENDED SEPTEMBER 30, 1978 OVER (UNDER)

BUDGET ACTUAL BUDGET REVENUES:

Ad valorem Taxes ................ S 459,550 S 467,852 $ 8,302 Cable TV Franchise .............. 6,500 6,891 391 Telephone Franchise ............. 16,000 17,651 1,651 City Licenses ................... 32,000 35,214 3,214 i County Licenses ................. 18,000 17,403 ( 597)

Building Permits ................ 12,000 16,088 4,088 Plumbing Permits ................ 13,500 4,300 ( 9,200)

Electric Permits ................ 4,100 4,368 268 Gas Permits ..................... 200 238 38 License Permits ................. 700 1,048 348 Dog Licensos'.................... 150 106 (. 44) a License Penalties ............... 600 981 381 Housing Assistance Program ...... 88,850 53,035 ( 35,815)

Federal Anti-Recession Fiscal Assistance Grant .............. 34,204 43,946 9,742 Federal Aid - CETA .............. 150,964 139,292 ( 11,672)

Federal Aid CETA Special Projects ...................... 85,470 55,414 ( 30,056)

Additional Homestead Exemption Trust Fund .................... 9,620 12,435 2,815 Governor's Highway safety Council 53,500 - ( 53,500)

LEAA (Police Communications)

Grant ......................... 10,556 7,586 ( 2,970)

Comprehensive Planning

, Assistance Grant .............. -

10,399 10,399 Meals-on-Wheels Grant ........... 2,500 4,416 1,916 State Revenue Sharing ........... 388,005 387,534 ( 472)

Additional 2C Cigarette Tax ..... 70,100 68,774 ( 1,326)

State Fuel Tax Refunds .......... 8,400 8,556 156 Mobile Home Licenses ............ 16,690 11,297 ( 5,393)

Alcoholic Beverage Licenses ..... 12,000 10,084 ( 1,916)

Lake County Boating Improvement . 6,000 6,000 -

Northwest District Ambulance Tax ................. 170,000 170,000 -

County Road and Bridge Tax ...... 63,000 57,475 ( 5,525)

Sales of Se rvices . . . . . . . . . . . . . . . 750 1,530 780 =j Police Alarm System Sales ....... 5,625 2,825 ( 2,800)

Police Station Revenue .......... 8,000 2,373 ( 5,627)

Prisoner-Room and Board ......... 2,000 6,480 4,480 Fire Station Revenue ............ 200 20 ( 180)

Ambulance ServiceL............... 50,000 67,208 17,208 Miscellaneous Revenue ........... . 1,500~ 212 (' 1,288)

Forward ............ 1,801,235 1,699,031 ( 102,204)

-(Continued) -1

EXHIBIT B CITY OF LEESBURG, FLORIDA STATEMENT OF FlNENUES, EXPENDITURES, TRANSFERS, AND FUND BALANCE - GENERAL FUND, CONTINUED OVER (UNDER)

BUDGET ACTUAL BUDGET REVENUES - (Forward) ............... $1,801,235 $1,699,031 ($102,204)

Paving Construction .............. 5,000 -

( 5,000)

Refuse and Garbage Collection ..................... 300,000 305,610 5,610 Landfill Fees .................... 14,000 13,442 ( 558)

Swimming Pool #1 ................. 5,500 3,641 ( 1,859)

Swimming Pool #2 ................. 1,500 1,863 363 Community Building Revenue . . . . . . . 8,700 7,367 ( 1,333)

Library Revenue .................. 5,300 5,238 ( 62)

Recreation-Citizens Participation. 19.000 26,862 7,862 Recreation Revenue ............... 3,200 718 ( 2,482)

Police Fines ..................... 55,000 69,873 14,873 Forfeitures ...................... 21,000 18,462 ( 2,538)

. Interest Earned .................. 3,000 16,240 13,240 Boathouse Rentals . . . . . . . . . . . . . . . . 480 -

( 480)

Real Estate Rental ............... 3,500 3,200 ( 300)

Airport Rental ................... 10,000 8,554 ( 1,446)

Sale of Aviation Fuel . . . . . . . . . . . . 1,500 1,437 ( 63)

Sales of Property and

! Equipment ...................... 14,000 16,448 2,448 j Insurance Compensation ........... 1,000 1,085 85 Public Works Jobbing ............. 5,000 22,334 17,334 Insurance Rebates . . . . . . . . . . . . . . . . 3,000 13,524 10,524 Other Income ..................... 500 379 ( 121)

Reimbursement by Utility Revenue Fund for Accounting, Billing and Collection Services ....................... 302,413 302,413 -

HUD Grant Revenues ............... - 1,188 1,188 Florida Recreational Develop-ment Assistance Grant .......... - 31,323 31,323 Group Insurance Premium Refund ... - 21,724 21,724 Total Revenues ...... 2,583,828 2,591,956 8,128 TRANSFERS FROM OTHER FUNDS:

Federal Revenue Sharing .......... 106,311 108,237 1,906 Utility Revenue Fund ............. 1,697,067 1,464,013 ( 233,054)

Total Transfers ..... $1,803,378 $1,572,230 ($231,148)

(Continued) -2 4

EXHIBIT B CITY OF LEESBURG, FLORIDA STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS, AND FUND BALANCE - GENERAL FUND, CONTINUED OVER (UNDER)

BUDGET ACTUAL BUDGET l

Total Revenues and Transfers ......... $4,387,206 $4,164,186 ($223,020)

EXPENDITURES:

City Commission .................. 19,950 21,703 1,753 Ordinances and Proceedings ....... 2,850 1,591 ( 1,259)

Elections ........................ 1,400 456 ( 944)

City Manager ..................... 43,775 41,469 ( 2,306)

Boards and Commissions ........... 21,800 14,460 ( 7,340)

City Clerk and Auditor:

General Office ................. 41,784 43,272 1,488 Accounting ....:................ 87,496 69,385 ( 18,111)

Independent Audit .............. 9,800 11,410 1,610 Data Processing ................ 118,122 113,848 ( 4,274)

Customer Service ............... 66,685 62,G42 ( 3,843)

Collections .................... 23,424 24,304 880 Meter Reading .................. 38,136 37,819 ( 317).

City Attorney .................... 30,300 29,358 ( 942)

Personnel ........................ 28,444 28,472 28 Planning ......................... 23,903 35,312 11,409 Statistician ..................... 15,112 15,236 124 Purchasing ....................... 32,149 34,519 2,370 Warehouse ........................ 28,314 27,907 ( 407)

Printing ......................... 12,199 9,638 ( 2,561)

Municipal Building ............... 19,918 16,412 ( 3,506)

Maintenance of Public Buildings ...................... 55,728 80,536 24,808 Rental Property Maintenance ...... 650 -

( 650)

Switchboard ...................... 18,964 18,059 ( 905)

Police Department ................ 587,097 557,739 ( 29,358)

LEAA Regional Police Communications ................. -

8,373 8,373 Police Support Service ........... 35,622 - ( 35,622)

City Jail ........................ 22,341 24,964 2,623 Fire Department .................. 355,810 353,632 ( 2,178)

Inspection Department ............ 34,108 23,428 ( 10,680)

Rescue Service ................... 261,980 192,205 ( 69,775)

Traffic Engineering .............. 19,916 17,115- ( 2,801)

Boat Ramp Improvement ............ 2,850 6,219 3,369 Engineering ...................... 83,603 77,069 ( 6,534)

Cemeteries .......................

2,600 2,481 ( 119)

Lake and Lot Clean Up ............ 31,649 26,606 ( 5,043)

Public Works Office .............. 40,132 53,977 13,845 Street Maintenance ............... 167,311. 147,712 ( 19,599)

Forward ...................... 2,385,922 2,229,528 ( 156,394)

(Continued) -3

l EXHIBIT B CITY OF LEESBURG, FIORIDA STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS, AND FUND BALANCE - GENERAL FUND, CONTINUED OVER (UNDER)

BUDGET ACTUAL BUDGET REVENUES AND TRANSFERS - '

(Forward).......................... $4,387,206 $4,164,186 ($223,020)

EXPENDITURES - (Forward) ............ 2,385,922 2,229,528 ( 156,394)

! Public Works Jobbing .............. 37,390 16,159 ( 21,231)

, Storm Drainage Maintenance ........ 16,244 12,875 ( 3,369)

Street Lighting ................... 70,000 63,867 ( 6,133)

Airport ........................... 21,899 12,697 ( 9,202)

Public Health and Welfare ......... 750 543 ( 207)

Housing Assistance Payments ....... 71,475 62,538 ( 8,937)

Urban Development and Housing Administration .................. 17,375 17,001 ( 374)

Animal Control .................... 12,572 17,159 4,587 Mental Health ..................... 5,500 5,500 -

Recreation ........................ 137,820 166,514 28,694 Swbuming Pools . . . . . . . . . . . . . . . . . . . . 52,850 45,516 ( 7,334)

Community Building ................ 69,121 68,651 ( 470)

Boathouse Projects ................ 61,915 23,351 ( 38,564)

Parks and Canals .................. 215,653 212,172 ( 3,481)

Library ........................... 134,987 135,673 686 S tree t Cleaning . . . . . . . . . . . . . . . . . . . 14,175 14,992 817 1

Refuse and Garbage Collection ...................... 342,372 342,612 240 Landfill .......................... 60,322 64,348 4,026 Retirement System and Employee Benefits ............... 232,775 255,395 22,620 Workman's Compensation Insurance .. 81,650 91,746 10,096 Unemployment Compensation ......... 10,000 8,338 ( 1,662)

Hospitalization and Life Insurance, 114,650 137,293 22,643 Property and Protection Insurance . 73,432 86,959 13,527 Principal and Interest Payments l on General Long Term Debt ....... 31,545 31,420 ( 125)

Warehouse Demolition .............. 10,439 3,687 ( 6,752)

Contingencies:

Salaries and Wages .............. 2,500 -

( 2,500)

Miscellaneous ................... 500 1,553 1,053 Public Relations ................ 1,500 325 ( 1,175)

Support of Civic Organizations .. 18,500 26,170 7,670 Capital Improvements (Note 1) ..... 5,893 5,893

Bad Debt Expense .................. 31,013 31,013 Motor Pool ........................ 90,080 90,080 Total Expenditures $4,305,833 $4,281,568 ($ 24,265)

(Continued) - 4

EXHIBIT B CITY OF LEESBURG, FIDRIDA STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS, AND FUND BALANCE - GENERAL FUND, CONTINUED-OVER

, (UNDER)

BUDGET ACTUAL BUDGET REVENUES AND TRANSFERS -

(Forward) ......................... $4,387,206 $4,164,186 ($223,020,)

EXPENDITURES - (Forward) ............ 4,305,833 4,281,568 ( 24,265)

TRANSFERS TO OTHER FUNDS:

Public Improvement Revenue Certificate Sinking Fund ........ 16,130 16,130 -

EDA Capital Projgets Funds ........ - 7,850 7,850 Total Transfers ....... 16,130 23,980 7,850-Total Expenditures and Transfers ..... 4,321,963 4,305,548 ( 16,415)

EXCESS (DEFICIT) OF REVENUES AND TRANSFERS OVER EXPENDITURES AND TRANSFERS $ 65,243 ($ 141,362) ($ 206,605)

FUND BALANCE, BEGINNING OF YEAR 545,661 FUND BALANCE, END OF YEAR:

Reserve for Inventory $ 5,519 Reserve for Group Insurance Premium Increase 21,724 Fund Balance 377,056' S 404,299 1

i l

See Accompanying Notes.

l l

i I

h (Concluded) -5 i-

EXHIBIT C CITY OF LEESBURG, FLORIDA FEDERAL REVENUE SHARING TRUST FUND STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS, AND FUND BALANCE YEAR ENDED SEPTEMBER 30, 1978

, REVENUES:

Federal Revenue Sharing Allocations .................. $ 76,464 Interest ....................... ___1,455 i

~ Total Revenues . . . . . . . . . . . $ 80,919 EXPENDITURES:

Lounge Furniture ............... 723' Public Works Prcjects .......... 1,450 Meals on Whsels ................ 2,756 Li bz ary Equipment . . . . . . . . . . . . . . 555 D3ck Repairs ................... 864 Fiscellaneous .................. 586

'arking Lot .................... 10,072 Police Excersise Room .......... 1,132 Total Expenditures ....... $ 18,138 TRANSFERS TO OTHER FUNDS:

To General Fund ................ 108,218 To Economic Development Administration Capital Projects Fund - Recreation Building ..................... 13,980' Total Transfers .......... 122,198 Tota] Expenditures and Transfers ............. 140,336 EXCESS (DEFICIT) OF REVENUES OVER EXPENDITURES AND TRANSFERS ..... ( 59,417)

FUND BALANCE BEGINNING OF YEAR ... 128,724 FUND BALANCE END OF YEAR ......... $ 69,307 See Accompanying Notes-

EXHIBIT D CITY OF LEESBURG, FLORIDA SPECIAL IMPROVEMENT FUND STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS, AND FUND BALANCE YEAR ENDED SEPTEMBER 30, 1978 REVENUES:

Interest .................... $ 1,240 EXPENDITURES:

Payment of Long-Term Debt Installment ............... $ 23,816 Interest .................... 433 Miscellaneous ............... 152 Total Expenditures ...... $ 24,401 TRANSFERS TO OTHER FUNDS:

To Economic Development Ad-ministration Capital Projects Fand - Recreation Building .................. 56,007 Total Expenditures and Transfers ....... 80,408 EXCESS (DEFICIT) OF REVENUES OVER EXPENDITURES AND TRANSFERS .. ( 79,168)

FUND BALANCE, BEGINNING OF YEAR 79,168 FUND BALANCE, END OF YEAR ..... $ -

See Accompanying Notes

i i

EXHIBIT E i CITY OF LEESBURG, FIDRIDA PUBLIC IMPROVEMENT REVENUE CERTIFICATE SINKING FUND.

STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND FUND BALANCE YEAR ENDED SEPTEMBER 30, 1978 REVENUES:

Interest ............................... S 5,931 TRANSFERS FROM GENERAL FUND .............. 29,390

, Total Revenues and Transfers ....... $ 35,321 1

4 EXPENDITURES:

Retirement of Public Improvement Revenue Certificates ......................... 30,000 Interest ............................... 17,075 Miscellaneous .......................... 331 Total Expenditures ................. 47,406 EXCESS (DEFICIT) OF REVENUES AND TRANSFERS OVER EXPENDITURES ........... ( 12,085)

FUND BALANCE, BEGINNING OF YEAR ......... 111,912 i

FUND BALANCE, END OF YEAR ............... $ 99,827 4

i 4

I i-4 See Accompanying Notes

EXHIBIT F CITY OF LEESBURG, FLORIDA CAPITAL PROJECTS FUND STATEMENT OF REVENUE, TRANSFERS, EXPENDITURES, AND FUND BALANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1978 CULTURAL RECREATION DISPLAY RECREATION COMPLEX FACILITY BUILDING REVENUE:

Econord c Development Administration Grant Reimbursements (Note 5) ... $ 211,213 $ 155,571 $ TRANSFERS FROM OTHER FUNDS:

From Utility Revenue Fund ......... 58,718 From Special Improvement Fund ..... 56,007 From Federal Revenue Sharing Fund . 13,980 From General Fund ................. 7,856 Total Transfers 136,561 Total Revenue and Transfers 211,213 155,571 136,561 EXPENDITURES:

Project Expenditures (Note 1) 211,213 155,571 136,561 EXCESS OF REVENUES AND TRANSFERS OVER EXPENDITURES ................. - - -

FUND BALANCE BEGINNING OF YEAR ...... - - -

FUND BALANCE END OF YEAR ............ $ -

l l

See Accompanying Notes l

EXHIBIT G CITY OF LEESBURG, FLORIDA X-RAY EQUIPMENT FUND STATEMENT OF REVENUE, EXPENSE AND RETAINED EARNINGS YEAR ENDED SEPTEMBER 30, 1978 OPERATING REVENUES:

Lease Revenues (Note 3) .................................. $ 19,034 NON-OPERATING EXPENSE:

Interest Expense ......................................... 17,781 NET INCOME ................................................. 1,253 RETAINED EARNINGS (DEFICIT),2EGINNING OF YEAR .............. ( 2,019)

RETAINED EARNINGS (DEFICIT), END OF YEAR ($ 766)

See Accompanying Notes

EXHIBIT H l

CITY OF LEESBURG, FIDRIDA l

X-RAY EQUIPMENT FUND

( STATEMENT OF CHANGES IN FINANCIAL POSITICN l YEAR ENDED SEPTEMBER 30, 1978 SOURCE OF FUNDS:

! Net Income .......................................... $ 1,253 Increase in Long Term Debt . . . . . . . . . . . . . . . . . . . . . . . . . . 59,040 Decrease in Long Term Portion of Net Investment in Direct Financing Lease ........................ 4,649 64,942 APPLICATION OF FUNDS:

Payment of Long Term Debt ........................... 42,272 Increase in Working Capital ................... $ 22,670

! REPRESENTED BY:

Increase (Decrease) in Current Assets:

Current Portion of Net Investment in Direct Financing Le a se . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 21,417

! Accounts Receivable ............................... ( 828) l Increase in Current Assets .................... 20,589 Decrease in Current Liabilities:

Due to General Fund ............................... 828 Accrued Interest Payable .......................... 1,253 Decrease in Current Liabilities ............... 2,081 Increase in Working Capital ................... $ 22,670 l

l l

See Accompanying Notes

EINIBIT I UTILITIES SYSTDI FLTDS CmB3ED BA1ANCE SFEET SEP".D0ER 10.19"8 PMAB12 UTILITIES UTILITIES UTILITIES WATER REVENL'E Elr.1EE REVENUE CRYSTAL RESEARCH UTILITIES UTILITIES CERTIFICATE CER*IFICATE RENEWAL AND 1974 IKED RIVER F3 1977 BND AND STS*DI REVDCE $3EDG RESERVE REP 1ACDENT CWSTECTI3 BCSD CONS *ECTIGt DEVElG1GfT WAL F 3D PMD F'HD F"ND P'KD FtTD F'3iD F"ND AST3 CURRENT ASSETS:

Cash................ . . .. . . $ 639,175 $ 639,175 $

g -

g .

g -

g .

I Ascounta haceivable Utiuty Accounto (Met of Allowance for Unco 11ectible Accounta cf $ 14,515 ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 938,709 938,709 - - - . - - .

Other (met of Allowance for Unec11.ctible Recounts of $ 36,8"3 ) . . . - . . . . . . . . . . . . . . . . . . . .. 17,874 17,r74 - - - - . . .

Inventory - ( At Average Cost) (Mote 1) ... .. . 500,M2 500,622 . . - . . . .

Amount) Due fre Cther Funds . . . . .. . LL7.639 LL'M19 - - - . . . .

Total Current Assete .. . . .. 2. 5LL .C 13 2. sLL .c 1B - - - - - - ,

RESTRICTED ASSETS (Note 2):

Cash.................... . ... .. 482,229 - 5,849 13,404 251,1 % 157,342 1,964 12,520 39,996 Funds with Fiscal Agent . . . . . . . . . . . . . . . . . . . . . . . . . . . . 555.091 - 555,091 - - - . . -

Investmente (At Bmok Value) (Note 1 Schedule 1) . . . 3,266,125 3,768 1,503 784,348 301,837 -

204.669 1,MO,000 .

Sanitary Sewer Assesemente . . . . . . . . 8,678 8,144 . 534 . - - - .

Aeerued I..terut . . . . . . . . . . . . ... . . . . 53,332 - - 7,205 1.424 856 374 43,473 .

Amounta b fra Other Fund e . . . . . . . . . . . .. . 2,000 - - - - - - - 2,000 Amount b fra Federal Goverrunent (ITA) .. . 18,M6 18,626 = . - - - - -

j Amount Receivable free Bank of Clearwater . . . .. 21.755 - - - - - - 21.755 .

Total Restricted Assets . . . . . . . . L .LC' . *M 30.539 5t L LL1 805.L91 ssa L15 158.199 23.0M 2.0L?.?a8 L1.996

}

f UTILITY Plairr IN SERTICE (At Cost, get of Acevendated Depreciation of $5,303,331) (Notes 1 and 5) l (Schedule 4 ) . . . . . .. . . . . . . . . . . . . . . .. 17.052.975 17.092.995 - . - - - - -

C1HER ASSETSr Unsoortised Discount on 1W7 Utility Revenue Bonds (Ecu1)........................................ 235,219 - 235,219 - - - - . -

C-ferret Issue Coste-1977 Utility Revernae Bonde (Nota 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222.900 - 222.700 - - - - - -

Total Other Assets .. .. .. .... . . . 457.m - L$7.919 - - - - - -

TOTAL ASSETS . . . . $ 24.4M ?L8 $ 19.627.511 $ 1.C20.1'2 $ 805.L91 $ $ 51.L15 $ 156.198 $ 2M.00' $ 2.CL7.?t9 $ L1.096 LIAFETTTES. FE2F7F.?. C'1cRIFTI'Y3 AND FMA!NED EARNIES CURRul? LIABILITIES.

Account) Payable . . . . ..... .. .... $ 1,219,345 $ 1,219.345 $ - $ - $ -

$ =

Aeerted lateroet ...... . . . .. . 3 % ,995 - 3 % ,995 - - - - - .

Customers' Deposite . . ..... . . . . . . . 343,395 343,395 - - - - - - -

Due to other Funds ........ .. .. .. . 714,580 266.996 . . 82,379 158,198 207,007 - -

Other Current 14 abilities .......... . . . . . 31,127 31.127 - - - . - - . i Custeers' Advances for Construction .. . . . . . . . Co.65L 99.651 - - - . - - -

Total Current Liabilities .... . . . . . . . . . 2.763.046 1. % 0.517 1 st.995 -

87 i'9 1se.1ve 20".0M - -

DEFENtED NEVENUE .. . . . . . . ..... . .. 8.678 8.1LL - 51L - -

I IL10-TENI DEHf - Amount b After One Year (Nete 2):

Utilities Revenue Bonds ....... . .. . . . . . . . . . 12.020.0to - 12.020.000 - - - - - -

RESEREES:

Reserve (Deficit) for Revenue Bond Debt Service . . . ( 11,3 % ,633) - ( 11,3 % ,633) = - - - - -

Reserve for Revenue Boat Retirement . . . . .... 804,957 - -

804.951 - - - - .

Reserve for Revenue Bond Contingency . . . . . . . 472,036 - - - 472,036 - . - -

Ruerve for authorised Construction ........... .. ... 2.oe9.744 - - - - - -

2.04?.74e L1.996 Total Reserves (Defleit) (Exhibit L) .. . . ( 7 9*' M -

( 11.15L .611) ACL.957 L72.016 - -

2.u.7.7Le 41.W6 CCNTRIBUTIONSr Contributions fra Custeers and Subdividers ..... .. 524,351 524,351 - - - - . - -

Contribution fra Federal Government Agency . . 1.017.915 1.017.915 - - - - - - -

Total Contributione (Exhibit L) . .. 1. 5*2.2% 1.S62I286 - - - - - - -

RETAINED EARN 3GS (Exhibit L) . . . . . . . . 16.006.584 16.096.58L - - - - - - -

TOTAL LIABruTIES, RESERVES CGr!RIllUTIONS AND RETAINED EARNDGS ..... $ L462.748 $ 19.629.531 $ 1.020. % 2 $ 805.191 $ 554.415 $ 154.108 $ 2M,0M $ 2.0L7.?L9 $ 11.996 D

o o Ju

]D o D 3'Y 2.A =

See Acecessnytag Notee

p CITY OF 1233110. FLOIL"JA ITTILITIES SYSTDt MDS ERIEIT J STATDIMT OF CGrnwn REHFJES AND EIPDISE YEAR ENDED 'ZF* DEER 10. 1998

. . . . . . . . . ......tFTILITIES RETINCE FUND., ... .......... . . . .

.. . ... .. . . .DEPADIENTS. . . . . . . . . . . . . . . . . . . . . . . . UTII.ITIES UTILITIES UTILITIES PotABE UTTLITIES SANITAHf EVENCE M7ENUE- MTEFJE CETSTAL MTER UTILITIES REVENUE SEER AND CIEIFICAIR CERTIFICAIE e mfM AND 1974 BND RIVER #3 1977 BWD MEAEE m STS!DE FL1tD WASTEWATER SINIING HESERFE IEPLACBIENT CWSTRICTICN BOND COESTEJCTIN DN Tr7TAL TcTal -rXTRIC CAS Wa17.R TEA *1ENT P"WD MD FUND F':ND F"1tD FUND MD

- ofEanTIur, svauss (Scheto2e 2):

herer Sales ...... . . . .. . .. . . . . . .. . . . . 811,268,741 811,268,741 89,761,124 81,507,617 s 3 3 - 3 - - g - g ' -

f hter Sa les . . . . . . . . . . . . . . . . . . . . . . . . . 421.153 421,153 - -

8 -

421,153 3

g - -

- Pe12mtica Aktement Charge .. 4....... 303,828 303,828 - - - 303,828 - - - - - - -

Industrial hete Treatment Chrges ... 31,471 31,471 - - - 31,471 - - - - - - -

Suburban hete Treatment Charges ..... 39,8tr7 39,887 - - - 39,887 - - - - - - -

Other Operating Revermee ............. 221.100 221.100 1*'2.06L 9. M2 _ 1 46 16.888 - s - - - - -

Tota 10perating Revemos. 12.286. lad 12.286. lac 9.913.1a8 1.517.la9 L21.769 , L12.Tk - - - , - - -

OPERLTDIG EIPemm (Exe3nsive of

. Depreciation) (Schedule 3):

Buelear Pauer Operstian .............. 99,974 99,774 - 99,974 - = = - - - - - - -

Purchasee . . . . . . . . . . . . . . . . . . . . . . . 5,188,302 5,188,302 4.347,506 840,796 -

Fuel Charge . .. . ... . . . . . . . . . . . . . .. 2,716,417 2,716,417 2,716,417 - - - - - - - - - -

Pumptag.............................. 131,164 331,164 - - - 131,164 - - - - - - -

Saures of Supply . . .. . ... ... . . . .. .. . 67,409 67,409 - - 67,409 - - - - - - - -

. hter Purification . . .. . . .. .. .. . . . . . 117,M2 117,M2 - - 117,072 - - - - - - = =

L Seongo Treatment . .. . .. ... . .. .. ... . .. . 115,025 115,025 - - - 115,025 - - - - - - -

Distribution Operstian ............ .. 201,299 201,299 38,359 60,957 301,983 - - - - - - - -

Distritation Maintenance .... . ...... 186,238 186,238 148,856 11,998 - 25,384 - - - - - . -

Customer Accountir.g ............ ...... 322,945 322,945 159,157 60,878 70,572 32,33a - - - - - - -

General and Administrative ...........

. Total Opersting Expenses 500.786 500.786 291.022 8L.113 m 9L.L22 - - - - - - .

(Enclusive of Depre-ciation) . .. . .. .. . . . . 9.6L6.611 9.6Ld .611 7.8C3.291 1.058.9L7 386.060 396.333 - - - - - - -

OPERATING IMCGIE (1453) IEFORE DErmCaTIcE . . .. . . . . .. . .. . . . . . .. . . . . . . . 2,639,549 2,639,549 4.229,897 45s,202 37,709 13,741 - - - - - - -

1.e. Deseeetation (note 1) (Schefu3e 4) 615.558 615.558 M9.f?5 56.089 59.341 50.249 - - - - - - -

OrERaTInc Income (IoSS) ............ ... 2.c21.991 2.023.991 1.680.022 t02.nl ( 21.636) ( 16.sce) - - - - - - -

QTian IncGe (EXPENSE):

cain en Advance Debt anfunding (net. 6) 31,196 - - - - - 31,196 - - - - - -

Interest Incces . ... . .. . . . . .... . . . .. 201,600 2.566 706 - - 1,860 10,924 48,360 19,028 37,550 15,319 65.993 1,860 other Incme 91,024 90,803 48,904 439 37,008 4,452 - 221 - -

Other Expens . . .

. . .. . . ( 3,243) - - - - - ( 2,360) ( 258) ( -1a0) ( -17c) ( -275) - -

Interest Expense . . .. . . . . . . . . .. . . . . . . . ( 450,669) - - - - - ( 450,669) - - - - - -

Amortisation of Debt Ieene Costs (note 1) ( 4.906) - - - - -

( 4.906) - - - - - -

Other Ineme (Expense) -

met ....... .... ....... (. 13-.99e) 91.169 L9.610 L39 17.008 6.122 ( tis.81s) - laan is.8c8 22451 nm 65.991 E Nrf IncGs (IaSS)

(ExxisIT n) ............. s 2.88e.993 s 2.117.160 $1.729.612 s LO2.s s2 s 15.1'2 (s 30.196) (s Lis.815) s_ gt.sn s is.8&s s 17.180 s_nm s (s.993 s_ Lagt See Accmpagirig Notes

, J

C"Y OF 12L*R'E. FIfR'tA UTILITIES ST3?DI FL1BDS EIKIBIT E AIALISIS OF CHAM 23 3 K.3ERE3, CNTRI!K'TIONS, AND STAIXED EA]WIDG5 YEAR IN".2D SEPNGER 10. 1999

.... ...... UTILITIES EYBiUE FUND..... ... .. . . . . . . .

UTILITIES MYDrJE TOTAL CNTRIBUTICIss CNTRIBUTIWS UTIMTIES UTIUTIES CERTIFICATE CNTRIBUTIWS Flpt Flut EvniUE REYDIL1 RBGkAL 1974 CRYSTAL 1977 UTIUTIES AND CUSTCERS Fv"N CERTIFICATE CERTIFICATE AMD BCIID RIVER F3 kBD ' FOTAE2 SYSTDI RETAIMED AND GOVERIOGNT RETAIMED SIEEDG RESERT REP 1ACDelf CWSTEUCTION BND m -m HATER T0*AL EA FIE DF"5 5UBCTYTDERS AGENCY (EPA) EAl51 DIGS P3D F"ND P'.113 7"3D FUND FL11D FUND Balance tt Cetober 1,1977:

( Reserves (Detteit) . .......... .. .... . . . . . . . . ($ 7,237,2u) 8 -

8 -

8 - 8 - (8 9,614,519) 8 628,439 8 198,014 4 1,108,140 8 4 4 ,579 4 - 8 28,134 Cont ritati ons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 447,917 447,917 365,382 82,535 - - - - - - - -

Retained Eare.irge . .. . . . . . . . . . . . . ... . .. ........ la .9"?.982 1& .95*'.e82 - - 1&.957.982 - - - - - - -

Total an lance .. . . . .. . . . . .. .. . . .... . . . . e ,1W*8 15.sc 5.?99 3M 142 82.535 1A.n?.esa ( 9.614.519) 626.k39 19f.0.a 1.100. h3 464.5'9 - e.

Add .

Ineresse in Reserve for Arvome Bond Debt Service . 792,015 - - - 792,015 - - - - - -

Increnes in Reserve for Revenue Bond Retinuent .... 128,195 = . - - - 128,195 - - - - -

Increase in Reserve for Arvenue Bond contingency ... 372,849 - - - - - - 372,849 - - - -

Increase in Ameerve far Authorised Construction . . 1,981,755 - - - - - - - - - 1,981,755 -

Increase in Ameerve for Fotable Water Research and Develolment .... . . . . . . . . . . . . .. 12,000 - - - - - - - - - - 12,000 Contributione From:

Custasers and Subdivisere ... .... ... ...... . . . . 158, % 9 158.969 158,969 - - - - - - - - -

- Federst ooverrment Agency (EPA) ........... ...... 955,400 955,400 - 955,400 - - - - - - - -

Wet Income for F! scal Yeer 1978 (Exhibit J) . ... .. 2,304,808 2,u?,360 - - 2,u7,360 - 48,323 18,848 37,380 15,044 65.993 1,860 interfuns Transfers:

Increase in Astained Earnings ........ ...... .... 1.692.813 1.692.918 - - 1.692.F.8 - - - - - - -

Total Additione . . . . . . . . ... .. .. . . ... e.19e.ao9 a. ga.5L7 ise.9 4 9 % . Loo 1.em.178 ?92.015 176.518 391.e97 17.180 A5.QLs 2.0L?.7&8 13.8ho (Deductione):

Increase in Ameerve for Revenue Bond Debt Service ..

Inerosse in asserve for Revenue Bond Retirement ....

Inerusse la Reserve for Revenue Borut Contingency . .

( 2,752,015)

(

128,195) 372,849) (

(

635,701) 128,195) 372,849)

-(

(

635,701 ( 1,960,000) 128,195 372,849

( 156,314)

Imergase in Reserve for Fetable Water itesearch and Deve lossent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 12,000) ( 12,000) - - ( 12,000) - - - - - - -

Net (Ices)for Flecal Year (Exhibit J) ......... .. . ( 415,815) - - - - ( 415,815) - - . . - -

Interfund Transfers:

Deerenee in asservee ....... ... ....... . . . . . . . . . . . 1,692,818 - - - - ( 156,314) - ( M7,675) ( 1,145,520) ( 273,309) - -

To General Fund .. 1,464,013 ( 1,464,013) - - ( 1,464,013) - - - - - - -

To Capi tal Project .Fund..........................

.. .. . . . .. . .. .. . . . .. .. . .. .. .. . *8.7M ( 98.718) - -

( $?.718) - - - - - - -

Total (Doductions) ..... ............. . ..... ( . 6.296.L23 ) ( 2.671.L?t) - -

( 2.t ?1.a?6) ( 2.532.129) -

( u?.t75) ( 1.1A5.520 ( L29.621) - -

Emlance at September 30, 1978:

Ameerves (Defielt) .. .... ...... ... . . . . . ... ( 7,9ert,896) = = - - ( u,354,633) 804,957 472,036 - - 2,047,748 Centributione . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1,562,286 1,562,286 524,351 1,037,935 - - - -

41*996 Retained Barnin8s . . . .. . . .. ... . . .. . . . . . . .. . . . . . 16.096.58L 16.096.58k - - 16.096.58L - - - - - - -

i TOTAL BAIANCE (EIKIBIT I) ..... ............ 8 9.6?O.9'k $17.658.070 $ 42Lui 8 1.017.915 $16.096.58L ($11.151.611) $ BCL.957 $ L*2.c16 8 - 8 -

$2.0L7.7L8 4 11.996 1 See Acehne Notes

,i

T D**]D m a D

A. 1 X =

3 o

EXHIBIT L CITY OF LEESBURG, FIDRIDA UTILITIES SYSTEMS FUNDS STATEMENT OF CHANGES IN COMBINED FINANCIAL POSITION YEAR ENDED SEPTEMBER'30, 1978' l FUNDS PROVIDED BY:

Ne t Income (Exhibit J) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,888,993

~ Expense not Requiring the Outlay of W orking Capital: Dep re cia tion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 615,558 Amortization of Debt Issue Costs ......... 4,906 Amortization of Bond Discount ............ 5,181 Amortization - Other ..................... 39,305 Total From Operations ................ 2,554,443 Disposal of Utility _ Plant in Service at Net

. Book Value ........................................ 17,536 Increase in Contributions in Aid of Construction .... 1,114,369 Increase in Long Term Debt .......................... 2,282,000 Increase in Deferred Revenue ........................ 7,923 Depreciation Capitalized on Construction of Utility Plant in Service .......................... 40,315 Decrease in Working Capital ......................... 388,290 TOTAL ............................ $ 6,404,876 m

FUNDS APPLIED TO:

Additions to Utility Plant in Service ............... $ 2,530,663 Transfers to Other Funds ............................ 1,522,731 Increase in Restricted Assets ....................... 2,010,672 Increase in Other Assets ............................ 340,810 TOTAL ............................ $ 6,404,876 INCREASE (DECREASE) IN WORKING CAPITAL:

Current Assets:

Cash .............................................. ($ 306,286)

Funds with Fiscal Agent ........................... ( 469,121)

Investments ....................................... ( 1,184)

Receivables ....................................... 56,879 Inventory ......................................... 88,237 Due From Other Funds .............................. 390,353 Current Liabilities:

Current Portion of Utilities Revenue Certificates and Mortgage Notes Payable ...................... 185,000 Accounts Payable .................................. ( 85,252)

Accrued Interest. . ................................. (. 70,874)

Customers' Deposits ............................... ( 72,046)

~Due to Other Funds ................................ ( .83,845)

Other Current Liabilities ......................... 79,503 Customers' Advances for Construction .............. ( 99,654)

TOTAL ............................ ($ 388,290) )

,See Accompanying Notes

. i .

EXHIBIT M CITY OF LEESBURG, FIORIDA EMPLOYEE RETIREMENT FUNDS STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS YEAR ENDED SEPTEMBER 30, 1978 MUNICIPAL MUNICIPAL RETIREMENT POLICE OFFICERS FIREMEN'S PLAN FOR 1 RETIREMENT- RETIREMENT GENERAL TRift:T FifMD PT.AN EMPIDYEES CASH BALANCE OCTOBER 1, 1977 ..... $ 28,875 S S RECEIPTS:

4 Transfer of Prior Years' Contributions from General Fund (Note 4) ................. -

69,150 135,857 Employer Contributions -

Current Year .................. -

30,892 117,401 Excess Rmployer Contribution due to Municipal Firemen's Retirement Plan ............... - -

16,742 Employee Contribution -

Current Year .................. 14,512 8,157 -

State of Florida Contributions -

Current Year .................. 30,568 20,331 -

Interest Received ............... 13,414 2,667 6,522 Investments Redeemed ............ 364,435 372,282 369,599 Total Receipts .......... 422,929 503,479 646,121 DISBURSEMENTS:

Investments Purchased ........... 437,927 472,612 641,740 Accrued Interest on Investments Purchased ..................... 5,136 1,304 2,732 Refunds - Resignations .......... 1,789 1,543 -

Annuity Payments ................ 6,401 - -

Administrative Expenses ......... 400 42 111 Total Disbursements ..... 451,653 475,501 644,583 CASH BALANCE SEPTEMBER 30, 1978 $ 151 S 27,978 $ 1,538 See Accompanying Notes i . _ _ _ _ _ _ _ _ _ _ _ _

EXHIBIT N CITY OF LEESBURG, FLORIDA MUNICIPAL POLICE OFFICERS' RETIREMENT TRUST FUND ANALYSIS OF CHANGES IN FUND BALANCE AND RETIREMENT RESERVES YEAR ENDED SEPTEMBER 30, 1978 RESERVE FOR RESERVE FOR FUND EMPLOYEE CONTRIBUTIONS BALANCE CONTRIBUTIONS STATE OF FLORIDA Balances October 1, 1977 .......... $ 133,531 $ 43,110 S 126,372 Additions:

Current Year Contributions ...... -

14,433 30,568 Interest Earnings ............... 18,861 - -

Total Balance and Additions .. 152,392 57,543 _156,940 Deductions: ;

Annuity Payments ................ 6,401 - -

Refunds Resignations ............ -

1,789 -

Administrative Expenses ......... 400 - -

Ioss on Sale of Investments . . . . . 8,312 - -

Total Deductions ............. 15,113 1,789 -

Balances September 30, 1978 ....... $ 137,279 $ 55,754 $ 156,940 See-Accompanying Notes

EXHIBIT O CITY OF I-EESBURG, FLORIDA MUNICIPAL FIREMEN'S RETIREMENT PLAN ANALYSIS OF CHANGES IN FUND BALANCE AND RETIREMENT RESERVES YEAR ENDED SEPTEMBER 30, 1978 ANALYSIS OF CHANGES IN FUND BALANCE FUND BALANCE (DEFICIT)

Balance October 1, 1977 (Note 4) .............. Actuarial Deficiency (Note 4) ................. ($236,393)

Balance (Deficit) September 30, 1978 .......... ($236,393)

ANALYSIS OF' CHANGES IN RETIREMENT RESERVES RESERVE FOR ACTUARIAL CONTRIBUTIONS DEFICIENCY RESERVE FOR STATE OF FIORIDA RESERVE FOR RESERVE FOR RESERVE FOR RESERVE FOR CONTRIBUTION HELD MUNICIPAL UNDISTRIBUTED EMPIDYEE' S EMPIDYER EMPLOYER BY GROUP ANNUITY FIREMEN'S INVESTMENT CONTRIBUTION CONTRIBUTION CONTRIBUTION CONTRACT CARRIER PENSION TRUST INCOME 1

Balances October 1, 1977 (Note 4) $ $ $ $ $ $ -

Additions:

Member Contributions 8,690 - - - - -

. Employer Contributions -

30,850 - - - -

State of Florida Muni-cipal Firemen's Pen-sion Trust Fund contribution - - - - 20,331 -

Interest Earnings - - - - - 2,892 Total Balance.and Additions 8,690 30,850 - -

20,331 2,892 Continued - 1

CITY OF LEESBURG, FLORIDA MUNICIPAL FIREMEN'S RETIREMENT PLAN ANALYSIS OF CHANGES IN FUND BALANCE AND RETIREMENT RESERVES YEAR ENDED SEPTEMBER 30, 1978 ANALYSIS OF CHANGES IN RETIREMENT RESERVES RESERVE FOR ACTUARIAL CONTRIBUTIONS DEFICIENCY RESERVE *FOR STATE OF FIORIDA RESERVE FOR RESERVE FOR RESERVE FOR RESERVE FOR CONTRIBUTION HELD MUNICIPAL UNDISTRIBUTED EMPIOYEE'S EMPLOYER EMPIOYER BY GROUP ANNUITY FIREMEN'S INVESTMENT f CONTRIBUTION CONTRIBUTION CONTRIBUTION CONTRACT CARRIER PENSION TRUST INCOME 1

Total Balance and Additions'(Forward). S 8,690 $ 30,850 $ $ $ 20,331 $ 2,892 Transfers:

L Actuarial. Deficiency (Note 4) - -

236,393 - - -

Transfer of Prior Years Contribution from Gen-eral Fund 10,747 44,607 - -

31,145 -

l Contributions Funded' l Under. Group Annuity Plan-Prior Years (Note 4) - - -

195,502 - -

Total Revised Balances 19,437 75,457 236,393 195,502 51,476 2,892

' Deductions:

Refunds-Resignations ( 2,479) - - - - -

Administrative Expenses ( 1,049)

Balances September,,30,1978$ 16,958 $ 75,457 $ 236,393 $ 195,502 $ 51,476 $ 1,843 i

See Accompanying Notes Concluded - 2

-______ w

EXHIBIT P CITY OF LEESBURG, FLORIDA RETIREMENT PLAN FOR' GENERAL EMPIDYEES OF THE CITY OF LEESBURG ANALYSIS OF CHANGES IN FUND BALANCE AND RETIREMENT RESERVES ACTUARIAL l

DEFICIENCY-RESERVE FOR RESERVE FOR FUND BALANCE EMPLOYER EMPLOYER (DEFICIT) CONTRIBUTION CONTRIBUTION Balance October 1, 1977 ........... S -

S -

I Additions:

Employer Contribution-Current Year .......................... -

117,401 -

Interest Earnings ............... - 7,929 -

Total Balance and Additions -

125,330 -

Transfers:

Actuarial Deficiency (Note 4).... ( 500,020) 500,020 Assets held by Group Annuity Contract Carrier (Note 4) ..... 508,997 Employer Contributions Funded Under Group Annuity Plan -

Previous Years ................ 135,857 Total Revised Balances ..... ( 500 020) 770,184 500,020 Deductions:

Administrative Expenses ......... -

( 5,521) -

l Loss on Investments ............. -

( 683) -

I Balance September 30, 1978 ($ 500,020) S 763,980 $ 500,020 '

See Accompanying Notes l

_ _ _ - - _ _ _ _ _ _ _ _ - - _ _ _ _ - _ 1

l EXHIBIT Q CITY OF LEESBURG, FLORIDA STATEMENT OF GENERAL FIXED ASSETS ,

SEPTEMBER 30, 1978 !

General Fixed Assets:

Land ................................. $ 1,027,182 Buildings ............................ 3,142,106 Improvements Other than Buildings .... 1,450,678 Equipment ............................ 1,899,926 Construction Work-in-Progress ........ 509,995 Total General Fixed Assets ..... $ 8,029,887 Investment in General Fixed Assets From:

General Obligation Bonds and Revenue Certificates ....................... $ 1,245,756 Capital Projects Funds:

Economic Development Administration. 366,784 Utility Revenue Fund ............... 58,718 Special Improvement Fund ........... 62,657 Federal Revenue Sharing Fund ....... 13,980 General Revenue Fund ............... 7,856 Hospital Construction Fund ......... 2,174,204 State, Federal and Local Grants .... 215,666 Federal Revenue Sharing .............. 370,138 General Fund Revenues ................ 3,514,128 Total Investment in General l

Fixed Assets ................. S 8,029,887

(

See Accompanying Notes

CITY OF LEESBURG, FLORIDA NOTES TO COMBINED FINANCIAL STATEMENTS SEPTEMBER 30, 1978 NOTE 1

SUMMARY

OF ACCOUNTING POLICIES The accounting policies of the City of Leesburg, Florida conform to generally accepted accounting policies as applicable to govern-mental units. The following is a summary of the significant policies.

Bases of Accounting:

t The accrual basis of accounting is followed by the X-Ray Equip-ment Fund, Utilities System Funds, Capital Projects Funds, and I

Employee Retirement Funds. All other funds utilize the modified accrual basis of accounting.

Depreciation:

Depreciation on Utility Revenue Fund assets has been computed on a straight-line basis over the estimated useful lives of the assets and made a part of operating expenditures.

Amortization:

Amortization has been computed using the present-value method on Unamortized Discount on the 1977 Utilities Revenue Bonds and the Deferred Issue Costs on the 1977 Bonds.

Investments:

Investments are comprised of time deposits, savings deposits, U.S. Government obligations, U.S. Government agency obligations and long-term corporate bonds. The carrying value of investments is

, stated at original cost which is substantially the same as market value as of September 30, 1978. There have been no significant market fluctuations subsequent to September 30, 1978 through the 4

date of this report.

General Fixed Assets:

General Fixed Assets purchased are recorded as expenditures in the General Fund, Federal Revenue Sharing Trust Fund and Capital k Projects Funds at the time of purchase. Such assets are capitalized at cost in the General Fixed Assets group of accounts. General Fixed Assets include the City's cost of assets of Leesburg General Hospital which is operated by an independent association.

Depreciation is not provided on General Fixed Assets.

(Continued) -1

CITY OF LEESBURG, FLORIDA NOTES TO COMBINED FINANCIAL STATEMENTS, ETC.

NOTE 1

SUMMARY

OF ACCOUNTING POLICIES (Continued)

Inventories:

Inventory held by the Utilities Revenue Fund is priced at average cost which approximates the lower of first-in first-out cost or market.

Inventory shown in the General Fund consists of expendable supplies held for consumption. The amount thereof has been recorded for infor-mation purposes only as an asset, offset by a reserve in an equal amount.

Funds with Fiscal Agent: ;

Utilities revenue certificates maturing on October 1 each year ,

together with interest payments then due are paid to the City's paying (

agent prior to that date. The aforementioned payment is recorded as an asset as of balance sheet date and subsequently as a reduction of utilities revenue certificates and accrued interest payable within the fiscal year of maturity.

Note 2 LONG-TERM DEBT The outstanding issues of public improvement revenue certificates and utilities revenue certificates require the City to transfer cer-tain amounts to reserve accounts based upon subsequent debt service criteria. At September 30, 1978, funding is current related to the debt agreements.

Additionally, the utilities revenue bond agreement provides that an amount equal to 5% of Annual Gross Revenues for the previous fiscal year of the Utilities System, after deducting from such gross revenues a sum equal to one hundred per cent of the fuel adjustment collections and one hundred per cent of the cost of the purchased energy component of purchased electric power and natural gas incurred during the previ-ous fiscal year, shall be deposited into a special account known as ,

the Renewal and Replacement Fund, until there shall be on deposit in such Renewal and Replacement Fund an amount recommended by the Consult-ing Engineers and approved by the City. -The monies in said Renewal '

and Replacement Fund shall be used only for the purpose of paying the cost of extensions, enlargements, or additions to, or the replace-ment of capital assets of the Utility System and emergency repairs thereto.

(Continued) -2

_ - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - _ _ _ _ _ _ _ _ _ _ _ I

CITY OF LEESBURG, FIORIDA NOTES TO COMBINED FINANCIAL STATEMENTS, ETC.

Note 2 IONG-TERM DEBT (Continued)

Collateral and interest rates on long-term debt are as follows:

Interest Collateral Rate Pledged Utilities Revenue Bonds Net Revenues of (final matutity: October the Utility System 1,2005) ................... 6% and all income on investments in the Utility Revenue L

Sinking Fund and Investment Account t

Public Improvements Revenue certificates (final maturity: 4% to 1989) ...................... 4.2% None l

( Mortgage Notes and other notes Certain Real Estate payable - General Long-Term 4% to recorded in General Debt (final maturity: 1995).. 10% Fixed Assets Note Payable - X-Ray Equip-ment (final maturity: 1982) 6.5% None (See Following Page) a i

(Continued) -3

CITY OF LEESBURG, FIDRIDA NOTES TO COMBINED FINANCIAL STATEMENTS, ETC.

UTILITIES SYSTEM X-RAY I Public Mortgage ... FUNDS... EQUIPMENT Fiscal Year Improvement Notes and General Utilities FUND Ending Revenue Notes Iong-Term Revenue Note September 30 Certificates Payable Debt Total Certificates Payable 1979.... $ 30,000 $ 2,000 $ 32,000 -

$ 55,659 1980.... 30,000 2,000 32,000 - 59,364 l d 1981.... 30,000 2,000 32,000 -

63,339 1982.... 30,000 2,000 32,000 -

74,566 (

1983.... 30,000 2,000 32,000 - -

Thereafter.. 250,000 15,000 265,000 $12,020,000 -

TOTAL $ 400,000 $ 25,000 $ 425,000 $12,020,000 $"252,928 i

I i

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l l

(Continued) -4 l

u- _ _ _ _ -

CITY OF LEESBURG, FLORIDA NOTES TO COMBINED FINANCIAL STATEMENTS, ETC.

NOTE 3 NET INVE'TMENT S IN DIRECT FINANCING LEASE The City's leasing operation consists solely of the leasing of ,

X-ray equipment to the City-owned hospital (which is operated by an independent association). The lease is classified as a direct financing lease and expires November 13, 1982. Lease payments of

$5,870 per month are received from the hospital which represents the monthly principal and interest payments due on the note payable for which the City is primarily liable. Beginning in October, 1978 the hospital will make direct payments to the bank. Lease transactions are accounted for in the X-Ray Equipment Fund.

NOTE 4 PENSION PLANS The City has three pension plans for employees as follows:

1. Municipal Police Officers' Retirement Trust Fund

2. Municipal Firemen's Retirement Plan

3. Retirement Plan for General Employees The Firemen's and General Employees Plans were previously held under a group annuity contract with an insurance company. The group annuity contract was terminated as of July 1,1977 and contributions have been held in escrow pending the adoption of revised plans.

A substantial portion of these contributions (which were reported as restricted assets within the General Fund in the previous year) a have been transferred to the Trustee of the revised plans. Each plan is reported as a separate Trust Fund in the current year.

k 2 Revised plans will become effective October 1, 1978 and the assets I held by the group annuity contract carrier (net of accrued benefits) will be transferred to the Trustee. A final accounting has not been

{

l made by the group annuity contract carrier and the amounts due from

' the carrier ($195,502 for Firemen and $508,997 for General Employees)

T are subject to market fluctuations and expense adjustments prior to l transfer. As a result, an actuarial valuation of the two plans is not yet complete for September 30, 1978. The most recent actuarial valua-tions of the Pension Plans are as follow.

I (Continued) -5 l

CITY OF LEESBURG, FLORIDA NOTES TO COMBINED FINANCIAL STATEMENTS, ETC.

NOTE 4 PENSION PLANS (Continued)

MUNICIPAL RETIREMENT MUNICIPAL POLICE FIREMEN'S PLAN FOR OFFICERS' RETIREMENT RETIREMENT GENERAL TRUST FUND PLAN EMPLOYEES Most Recent Valuation Date January 1, 1978 July 1,1977 July 1,1977 Unfunded Actuarial Deficiency (Excess): i Current Plan ($ 77,000) $236,000 $ 500,000 i Revised Plan (effective October 1, 1978) N/A $585,000 $1,077,000 The Employee Retirement System Reserves and Fund Balance reflect the unfunded actuarial deficiency of the Firemen's and General Employees' pension plans prior to revision and as of July 1, 1977.

NOTE 5 CAPITAL PROJECTS FUND The City has received project grants from the Economic Develop-ment Administration, U.S. Department of Commerce as follows:

Recreation Complex ........... $ 267,820 Cultural Display Facility .... 159,180

$ 427,000 The projects were estimated at 97% completion (Recreation Complex) and 61% (Cultural Display Facility) complete as of September 30, 1978.

The remaining grants available for reimbursement are expected to be sufficient to cover the estimated costs to complete the projects. '

NOTE 6 ADVANCE DEBT REFUNDING The City issued $12,020,000 principal amount of Refunding and Capital Improvement Utilities Revenue Bonds, Series 1977, dated April 1, 1978, under the provisions of a Resolution adopted by the City on February 2, 1978, for the purpose of refunding the outstanding

$9,738,000 principal amount of Utilities Revenue Certificates of various series and for the purpose of paying the cost of acquisition and construction of improvements to the utility system. Simultaneously-with the issuance of_the 1977 Bonds, the City issued its Special Obli-gation Bonds, Series 1977A, in order to provide a portion of the funds necessary to accomplish the refunding.

The 1977 Bonds are secured by a first lien on and a pledge of the net revenues of the utility system, and from all income derived from the investment of funds in the Utilities Revenue Sinking Fund - Invest-ment Account.

(Continued) -6 L - - _ _ _ _ _ _ _ _ - . _ i

CITY OF LEESBURG, FLORIDA NOTES TO COMBINED FINANCIAL STATEMENTS, ETC.

NOTE 6 ADVANCE DEBT REFUNDING (Continued)

This was a full cash advance refunding. The Special Obligation Bonds were issued to provide additional funds, which together with the proceeds from the 1977 Bonds, were sufficient to pay the interest, principal an'd any call premiums on the then outstanding $9,738,000 principal amount of Utilities Revenue Certificates, the "old debt".

The "old debt" is serviced by the investments in trust and the revenue bonds are serviced by the entity. The Special Obligation Bonds are serviced by the income earned on the investment in trust.

The investments in trust are direct U.S. Treasury obligations acquired with proceeds of the 1977 Bonds and of the Special Obliga-tion bonds.

The computation of the gain on the advance debt refunding is as follows:

Capital Refunding Improvements Portion Portion Total 1977 Bonds, Principal Amount ................... $10,020,000 $2,000,000 $12,020,000 Issuance Costs and discounts to be deferred and amor-tized over the life of the revenue bonds:

Discount ........... ( 200,400) ( 40,000) ( 240,400)

Issuance Costs ..... ( 227,605) ( -

) ( 227,605)

( 428,005) ( 40,000) ( 468,005)

Net Carrying Value of 1977 Bonds ............... 9,591,995 $1,960,000 $11,551,995 Carrying Amount of "Old Debt" Principal ......... 9,738,000 Unamortized Discount .. ( 114,809) 9,623,191 Gain on Advance Refunding $ 31,196 The Special Obligation Bonds are not included in the calculation of the gain on advance refunding or in the balance sheet, because they will be serviced from the earnings on the proceeds from the advance refunding and do not constitute an obligation of the City.

(Continued) -7

D' CITY OF LEESBURG, FLORIDA NOTES TO COMBINED FINANCIAL STATEMENTS, ETC.

NOTE 6 ADVANCE DEBT REFUNDING (Continued)

The "Old Debt" is not included in the balance sheet as the advance refunding is accounted for as a defeasance transaction in which the "Old Debt" is legally satisfied.

NOTE 7 CONTINGENCIES The City of Leesburg is the defendant in a lawsuit filed by a group of black citizens alleging racial aiscrimination in the use of Federal Revenue Sharing funds. The plaintiff seeks an order to place Federal Pevenue Sharing funds in escrow for pro-viding additional facilities and services to the black residential community. The suit also seeks plaintiff's costs and legal fees.

Provision has not been made in the financial statements for costs to be incurred relative to the lawsuit.

1 f

'1 i

..j i

T i

.(Concluded) i a

BROOKS, BROWN AND SHUMACKER CERTIFIED PUBLIC ACCOUNTANTS 215 North 3rd Street e Leesburg, Florida 32748 Telephone (904) 787-8682 MEMBERS: W. THOMAS BROOKS, C.P.A.

B. ALLEN BROWN, JR., C.P.A.

Florida institute of Certified Public Accountants American Institute of Certified Public Accountants J. CECIL SHUMACKER, Ill, C.P.A.

January 26, 1979 SUPPLEMENTARY SCHEDULES In connection with our examination of the financial statements of the City of Leesburg for the year ended September 30, 1978, we have also examined the additional information presented in the following pages. In our opinion, such information is fairly presented although it is not necessary for a fair presentation of financial position, results of operations or changes in financial position.

f BROOKS, BROWN AND SHUMACKE7 Certified Public Accountants 5

i l

l l

l i

l J

SCHEDULE 1 CITY OF LEESBURG, FLORIDA COMBINED SCHEDULE OF INVESTMENTS - ALL FUNDS SEPTEMBER 30, 1978 TOTAL INTEREST MATURITY PAR UNAMORTIZED UNAMORTIZED . BOOK

---DESCRIPTION OF INVESTMENTS--- RATES DATES VALUE PREMIUMS DISCOUNTS VALUE GENERAL FUND:

Savings Deposit ................................. 5.0% -

$ 96,598 - -

$ 96,598 FEDERAL REVENUE SHARING TRUST FUND:

Savings Deposit ................................. 5.25% -

$ 54,197 - -

$ 54,197 PUBLIC IMPROVEMENT REVENUE CERTIFICATE SINKING FUND:

Time Deposit .................................... 7.85% 1978 $ 80,000 -

$ 80,000 MUNICIPAL POLICE OFFICERS RETIREMENT TRUST FUND:

U.S.. Treasury Note .............................. 6.25% 1979 $ 4,000 - -

S 4,000 Savings Deposit ................................. 5.25% -

50,242 - -

50,242 Savings Deposit ................................. 5.25% -

2,110 - -

2,110 Federal Home Loan Bank Bonds .................... 6.65% 1980 50,000 -

$ 187 49,813 Federal Land' Bank Bonds ......................... 6.15% 1979 50,000 -

484 49,516 U.S. Treasury Note .............................. 7.125% 1982 91,415 - -

91,415 U.S. Treasury Note .............................. 8.35% 1979 46,093 - -

46,093 U.S. Treasury Note .............................. 8.375% 1980 49,890 - -

49,890 Total Municipal Police Officers Retirement Trust Fund ................................ $ 343,750 $ 671 $ 343,079 MUNICIPAL FIREMEN'S RETIREMENT PLAN:

Republic of Texas Corp. Revolving Notes ......... 8.7% 1978 $ 2,000 -

$ 2,000 U.S. Treasury Bills ............................. 7.9% 1978 40,000 -

S 697 39,303 U.S. Treasury Note .............................. 8.2% 1985 25,000 -

352 24,648 U.S. Treasury Note .............................. 8.4% 1988 25,000 -

484 24,516 Phillip Morris, Inc. Corporate Bonds ............ 8.6% 1985 10,000 -

137 9,863 Total Municipal Firemen's Retirement Plan ..... $ 102,000 $ 1,670 $ 100,330 Continued - 1

SCHEDULE 1 CITY OF LEESBURG, FIORIDA C'MBINED O SCHEDULE OF INVESTMENTS - ALL FUNDS TOTAL INTEREST MATURITY PAR UNAMORTIZED UNAMORTIZED BOOK

---DESCRIPTION OF INVESTMENTS--- RATES OATES VALUE PREMIUMS DISCOUNTS VALUE RETIREMENT PLAN'FOR GENERAL EMPLOYEES:

Republic of Texas Corp. Revolving Notes ......... 8.7% 1978 $ 6,000 - -

S 6,000 U.S. Treasury Bills ............................. 7.9% 1978 145,000 - S 2,527 142,473 U.S. Treasury Notes ............................. 8.2% 1985 50,000 -

703 49,297 U.S. Treasury Notes ............................. 8.4% 1988 50,000 -

969 49,031 Phillip Morris, Inc. Corporate Bonds ............ 8.6% 1985 25,000 - 344 24,656 Total Retirement Plan for General Employees .. S 276,000 S 4,543 S 271,457 UTILITIES REVENUE FUND:

-Savings Deposit ................................. 5.25% -

S 3,768 - -

S 3,768 UTILITIES REVENUE CERTIFICATE RESERVE FUND:

U.S. Treasury Bonds ............................. 7.25% 1979 200,000 $ 322 - 200,322 U.S. Treasury Bonds ............................. 4.25% 1985 40,000 -

S 4,547 35,453 U.S. Treasury Bonds ............................. 3.25% 1983 18,000 -

930 17,070 U.S. Treasury Bonds ............................. 3.25% 1983 37,000- - -

37,000 Savings Deposit ................................. 5.25% - 494,503 - - 494,503 Total Utilities Revenue Certificate Reserve Fund ..................................... 789,503 322 5,477 784,348 1977 BOND CONSTRUCTION FUND:

Time Deposit .................................... 7.82% 1978 1,970,000 - - 1,970,000 CRYSTAL RIVER #3 BOND FUND:

Time Deposit .................................... 8.01% 1978 100,000 - - 100,000 Savings Deposit ................................. 5.0% - 104,669 - -

104,669 Total Crystal River #3 Bond Fund ............. 204,669 204,669 UTILITIES REVENUE CERTIFICATE SINKING FUND:

Savings Deposit ................................. 5.25% - 1,119 - -

1,119 Savings Deposit ................................. 5.00% - 384 - -

384 Total Utilities Revenue Certificate Sinking Fund ..................................... 1,503 1,503 Continued - 2

SCHEDULE 1 CITY' OF LEESBURG, FIDRIDA COMBINED SCHEDULE OF IE4 VESTMENTS - ALL FUNDS TOTAL INTEREST MATURITY PAR UNAMORTIZED UNAMORTIZED BOOK,

---DESCRIPTION OF INVESTMENTS--- RATES DATES VALUE PREMIUMS DISCOUNTS VALtJE UTILITIES FUNDS (FOFWARD) $2,969,443 S 322 S 5,477 S2, % 4,288

. UTILITIES REVENUE RENEWAL & REPLACEMENT FUND:

Time Deposit'....................................

8.1% 1978 101,837 - - 101,837 Time' Deposit .................................... 8.01% 1978 200,000 - - 200,000 Total Utilities Revenue Renewal & Replacement Fund ..................................... 301,837 301,837 Total Utility System' Funds (Exhibit 1). $3,271,280 $ 322 $ 5,477 $3,266,125 Concluded - 3

SCHEDULE 2 CITY OF LEESBURG, FLORIDA UTILITIES REVENUE FUND SCHEDULE OF BUDGETED AND ACTUAL OPERATING REVENUES YEAR ENDED SEPTEMBER 30, 1978 OVER (UNDER)

BUDGET ACTUAL BUDGET ELECTRIC DEPARTMENT:

Energy Sales:

Domestic ................. $ 2,632,000 $ 2,233,317 ($ 398,683)

General, Non-Demand ...... 1,838,000 1,633,561 ( 204,439)

General, Demand .......... 860,700 1,237,658 376,958 Domestic' Outdoor Lighting .............. 104,000 84,995 ( 19,005)

Sales to Other Public Authorities ........... 10,000 ( 10,000)

Street and Highway ....... 52,000 63,751 11,751 Penalties ................ 24,000 32,081 8,081 Total Energy Sales ..... 5,520,700 5,285,363 ( 235,337)

Fuel Charge ................ 2,445,550 4,475,761 2,030,211 Other Operating Revenues Pole Rental . . . . . . . . . . . . . . 31,000 30,299 ( 701) service Charge ........... 13,000 17,412 4,412 Underground Electric Service ............... 15,000 4,193 ( 10,807)

Florida Power Rebate ..... 99,731 99,731 Miscellaneous Salvage .... 20,000 20,429 429 Total Other Operating Revenues ............. 79,000 172,064 93,064 Total Electric Department ....... 8,045,250 9,933,188 1,887,938 GAS DEPARTMENT:

Energy Sales:

Residential .............. 673,364 584,241 ( 89,123)

Commerc'ial ............... 189,409 236,100 46,691 Interruptible ............ 197,300 672,014 474,714 Penalties ................ 14,500 15,262 762 Total Energy Sales ..... 1,074,573 1,507,617 433,044 Other Operating Revenues:

Service Charges .......... 17,500 9,532 ( 7,968)

Total Gas Department 1,092,073 1,517,149 425,076 Continued - 1 l

l SCHEDULE 2 CITY OF LEESBURG, FIORIDA SCHEDULE OF' BUDGETED AND ACTUAL OPERATING REVENUES - UTILITIES REVENUE FUND OVER (UNDER)

BUDGET ACTUAL BUDGET WATER DEPARTMENT:

Water Sales:

Residential ............. $ 237,931 $ 239,212 $ 1,281 Commercial and Industrial ............ 161,233 135,268 ( 25,965)

Municipal Water Sales ... 38,896 27,825 ( 11,071)

Penalties ............... 15,000 17,249 2,249 l Sprinkler Service ....... 1,500 1,599 99 Total Water Sales ..... 454,560 421,153 ( 33,407)

Other Operating Revenues Service Charges ......... 17,500 2,616 ( 14,884)

Total Water Department .......... 472,060 423,769 ( 48,291)

WASTEWATER TREATMENT AND SANITARY SEWER DEPARTMENTS Revenues:

Pollution Abatement Charges ............... 305,000 301,173 ( 3,827)

Suburban Waste Treatment Charges ............... 39,350 39,887 537 Service Charges:

Coca-Cola Company ....... 26,800 31,472 4,672 Penalties ............... 3,500 2,654 ( 846)

Total Operating Revenues 374,650 375,186 536 Other Operating Revenues:

Tap-Ins ................. 15,000 25,835 10,835 Sewer Liens ............. 10,000 1,086 ( 8,914)

Sales of Processed Sludge 300 263 ( 37)

Assessments & Extensions. 15,000 9,704 ( 5,296)

Total Other Operating Revenues ............. 40,300 36,888 ( 3,412)

Total Wastewater and Sanitary Sewer Departments ......... 414,950 412,074 ( 2,876)

TOTAL (Exhibit J) .. $10,024,333 $12,286,180 $2,261,847 l

l Concluded - 2 1

SCHEDULE 3 CITY OF LEESBURG, FLORIDA l UTILITIES REVENUE FUND SCHEDULE OF BUDGETED AND ACTUAL OPERATING EXPENSES l (EXCLUSIVE OF DEPRECIATION)

YEAR ENDED SEPTEMBER 30, 1978 l I

OVER I I (UNDER)

BUDGET ACTUAL BUDGET ELECTRIC DEPARTMENT:

Nuclear Power Operation ......... $ __ $ 99,974 $ 99,974 Power Supply:

Normal Rate Charge ............ 2,270,000 3,034,935 764,935 Fuel Charge ................... 2,330,000 2,716,417 386,417 Crystal River Generation ...... 500,000 1,083,424 583,424 Crystal River Transmission .... 150,000 229,147 79,147 Distribution Operation ........ 30,700 38,359 7,659 Distribution Maintenance ...... 151,000 148,856 ( 2,144)

Customer Accounting ........... 145,800 159,157 13,357 General and Administrative .... 302,500 293,022 ( 9,478)

Total Electric Department .. 5,880,000 7,803,291 1,923,291 WATER DEPARTMENT:

Source of Supply ................ 54,587 67,409 12,822 Water Purification .............. 119,520 117,072 ( 2,448)

Distribution Operation........... 92,364 101,983 9,619 Customer Accounting ............. 65,081 70,572 5,491 General and Administrative ...... 29,100 29,024 ( 76)

Total Water Department ..... 360,652 386,060 25,408 CAS DEPARTMENT:

Purchases ....................... 486,460 840,796 354,336 Distribution Operation .......... 66,048 60,957 ( 5,091)

Distribution Maintenance ........ 10,200 11,998 1,798 Customer Accounting ............. 54,467 60,878 6,411 General and Administrative ...... 55,054 84,318 29,264 Total Gas Department ...... 672,229 1,058,947 386,718 WASTEWATER TREA'INENT AND SANITARY SEWER DEPARTMENT:

Pumping ......................... 121,973 _131,164 9,191 Sewage Treatment ................ 118,813 115,025 ( 3,788)

Distribution Maintenance ........ 33,740 25,384 ( 8,356)

Cus tomer Accounting . . . . . . . . . . . . . 32,040 32,338 298 l General and Administrative ...... 97,638 94,422 ( 3,216)

' Total Wastewater Treatment and Sanitary Sewer Dept. 404,204 398,333 ( 5,871)

TOTAL (EXHIBIT J) $ 7,317,085 $9,646,631 $2,329,546

CITY OF LEESBURG, FLORIDA UTILITIES REVENUE FUND SCHEDULE OF UTILITY PLANT IN SERVICE AND DEPRECIATION Schedule 4 FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1978 ASSETS DEPRECIATION BALANCES BALANCES (Beginning (End of DEPRECIATION DEPRECIATION of Year) ADDITIONS DELETIONS Year) TAKEN RATES (4)

ELECTRIC PLANT IIuildings: -

-Warehouse' $ 454,987 $ -

S S 454,987 General Plant 145,801 - - 145,801 City Hall 33,295 - - 33,295 Transformer-Repair Shop - 14,499 - 14,499 Total-Buildings 634,083 14,499 - 648,582 $ 12,794 2,00

'hnprovements Other Than 1$2ildings: -

Nuclear Fuel -

55,393 55,393 27,677 100.00 Crystal River #3 Nuclear Power Plant 4,473,531 212,032 4,685,562 161,047 3.60

-Overhead Conductors and -

Devices 3,987,719 502,583 4,490,302 134,696 3.00 Underground Conductors and Devices- 18,157 5,980 -

24,137 724 3.00 Line Transfomers 1,277,891 119,820 -

1,397,711 41,931 3.00 Distribution Plant 113,089 -

113,089 3,393 3.00 Electric Meters 392,957 33,752 -

426,709 12,801 3.00 Street, Lights.& Signals 458,989 30,381 470 488,901 14,667 3.00 Rental Lights 1,655 -

1,655 50 3.00 Total-Improvements Other Than Buildings 10,723,988 959,941 470 11,683,459 396,986 Machinery & Equipment:

Plant and Test Equipment 45,649 -

65 45,584 2,279 5.00 Tools'and Work Equipment 9,408 20,041 -

29,449 1,472 5.00 Office Equipment 104,522 -

104,522 5,227 5.00 Vehicles 367,827 68,373 16,005 420,195 71,433 17.00 Total Machinery & Equipment 527,406 88,414 16,070 -599,750 80,411 TOTAL ELECTRIC PLANT $11,885,477 $1,062,854 S 16,540 $12,931,791 $490,191 Continued - 1

CITY OF LEESBURG, FLORIDA UTILITIES REVENUE FUND SCHEDULE OF UTILITY PLANT IN SERVICE AND DEPRECIATION Schedule 4 FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1978 ASSETS DEPRECIATION BALANCE BALANCE (Beginning (End of DEPRECIATION DEPRECIATION of Year) ADDITIONS DELETIONS Year) TAKEN RATES (%)

GAS PLANT 16,050 -

S 16,050 Land S $ -

S Euildings:

12,704 - - 12,704 S 225 City Hall Total Buildings 12,704 - - 12,704 225 2.00 Improvements Other Than Buildings:

Natural Gas System 1,322,889 14,468 - 1,337,356 46,429 - - 46,429 Gate Station 116,770 37,391 - 154,162 Gas Meters Total Improvements Other Than Buildings 1,486,088 51,859 - 1,537,947 42,294 2.75 Machinery & Equipment:

System Equipment 35,057 - - 35,057 1,753 5.00 Tools and Shop Equipment 9,334 7,268 - 16,602 830 5.00 Office Equipment 16,949 - - 16,949 847 5.00 59,648 59,648 10,140 17.00

. Vehicles - -

Total Machinery &

120,988 7,268 128,256 13,570 Equipment -

$ 1,635,830 $ 59,127 $ - S 1,694,957 $ 56,089 TOTAL GAS PLANT Continued - 2

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l CITY OF LEESBURG, FLORIDA UTILITIES REVENUE FUND SCHEDULE OF UTILITY PLANT IN SERVICE AND DEPRECIATION SCHEDCa 4 j FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1978 i

ARR F"PR DEPRECIATION BALANCE BALANCE (Beginning (End of DEPRECIATION DEPRECIATION of Year) ADDITIONS DELETIONS Year) TAKEN RATES (%)

WATER PLANT Land $ 5,488 S 26,757 .S -

S 32,245 S -

Buildings:

Pumping Plant 10,094 31,612 -

41,706 834 2.00 Warehouse-Water 22,618 - -

22,618 1,131 5.00 Warehouse-Inprovement 32,699 - -

32,699 612 2.00 City Hall 1,800 - -

1,800 36 2.00 Total Buildings 67,211 31,612 -

98,823 2,613 Improvements Other Than Buildings:

Water Works 1,397,399 - -

1,397,399 27,948 2.00 Water Distribution 19,410 - -

19,410 388 2.00 Fire Hydrants 37,819 4,116 -

41,935 839 2.00 Water Mains 1,621,786 99,121 -

1,720,907 17,209 1.00 Potable Water Wells 1,331 - -

1,331 13 1.00 Well and Spring Pumps 187,798 20,183 -

207,981 4,160 2.00 Total Improvements Other Than Buildings 3,265,543 123,420 -

3,388,963 50,557 Machinery & Equipment:

System Equipment 17,397 - -

17,397 870 5.00 Tools and Shop Equipment 13,993 20,550 -

34,543 1,727 5.00 Office Equipment 5,650 - -

5,650 282 5.00 Vehicles 19,882 -

500 19,382 3,295 17.00 Total Machinery & Equip. 56,922 20,550 500 76,972 6,174 TOTAL WATER PLANT $ 3,395,164 $ 202,339 $ 500 S 3,597,003 S 59,344 Continued - 3

CITY OF LEESBURG, FIORIDA UTILITIES REVENUE FUND SCHEDULE OF UTILITY PLANT IN SERVICE AND DEPRECIATION SCHEDULE 4 FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1978 ASSETS DEPRECIATION BALANCE BALANCE (Beginning (End of DEPRECIATION DEPRECIATION of Year) ADDITIONS DELETIONS Year) TAKEN RATES (%)

WASTEWATER TREATMENT PLANT Land:

Treatment Plant S 45,258 $ -

S -

S 45,258 $

201 Farm 102,350 821,866 - 924,216 Total Land 147,608 821,866 -

969,474 -

tuildings:

Treatment Plant 7,625 - - 7,625 Office 2,310 - -

2,310 Lab 4,315 - -

4,315 Fence 700 - -

700 City Hall 2,699 -

- 2,699 Total Buildings 17,649 - -

17,649 338 2.00 Improvements Other Than Luildings:

201 Plant-Feasibility 129,990 - -

129,990 -

201 Plant-Survey 26,540 342,215 -

368,755 -

Disposal Expansion Plant 1,007,435 - - 1,007.435 20,149 1.00 Total Improvtsents Other Than Buildings 1,163,965 342,215 - 1,506,180 20,149 Machinery & Equipment:

System Equipment 41,443 2,080 240 43,283 2,164 5.00 Office Equipment 8,475 - -

8,475 424 5.00 Vehicles 29,824 10,050 155 39,719 6,752 17.00 Total Machinery & Equipment 79,742 12,130 395 91,477 9,340 TOTAL WASTEWATER PLANT $ 1,408,964 S 1,176,211 S. 395 $ 2,584,780 $ 29,827 Continued - 4

CITY OF LEESBURG, FLORIDA UTILIT..S REVENUE FUND SCHEDULE OF UTILITY PLANf IN SERVICE AND DEPRECIATION SCHEDULE 4 FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1978 ASSETS DEPRECIATION BALAm.m.s asawusr.s (Beginning (End of DEPRECIATION DEPRECIATION of Year) ADDITIONS DELETIONS Year) TAKEN RATES (g)

SEWER SYSTEM Land S 4,573 $ -

$ 4,573 $ -

Buildings:

Truck Shed 7,668 - -

7,668 City Hall 1,800, - -

1,800 Total Buildings 9,468 - -

9,468 180 2.004 Improvements Other Than -

Buildings:

Sewer Lines & Manholes 1,444,326 26,566 - 1,470,892 14,709 1.00 Machinery and Equipment:

System Equipment 33,843 3,565 100 37,308 1,865 5.00 Office Equipment 5,650 - -

5,650 288 5.00 vehicles 19,882 - - 19,882 3,380 17.00 Total Machinery & Equip 59,375 3,565 100 62,840 5,532 TOTAL SEWER PLANT $1,517,742 $ 30,130 $ 100 $1,547,772 20,422 Concluded-5

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l UTILITIES REVENUE FUND

SUMMARY

SCHEDULE OF UTILITY PLANT IN SERVICE AND DEPRECIATION SCHEDULE 4 FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1978

SUMMARY

ASSETS DEPRECIATION BALANCE BALANCE (Beginning (End of DEPRECIATION DEPRECIATION of Year) ADDITIONS DELETIONS Year) TAKEN RATES (%)

Euildings $ 634,083 $ 14,500 S S 648,583 $ 12,794 2.00 Improvements Other Than Buildings 10,723,988 959,941 470 11,683,459 396,986 3.00 to 100 Machinery and Equipment 527,406 88,414 16,070 599,750 80,411 5.00 to 17.00 Total' Electric Plant 11,885,477 1,062,855 16,540 12,931,792 490,191 GAS PLANT:

Land 16,050 16,050 Buildings 12,704 12,704 225 2.00 Improvements Other Than Buildings 1,486,088 51,859 1,537,947 42,294 2.75 Machinery and Equipment 120,988 7,268 128,256 13,570 5.00 to 17.00 Total Gas Plant 1,635,830 59,127 1,694,957 56,089 WATER PIANT:

Land 5,488 26,757 32,245 Buildings 67,211 31,612 98,823 2,613 2.00 to 5.00 Improvements Other Than Buildings 3,265,543 123,420 3,388,963 50,557 1.00 to 2.00 Machinery and Equipment 56,922 20,550 500 76,972 6,175 5.00 to 17.00 Total Water Plant 3,395,164 202,339 500 3,597,003 59,345 WASTEWATER TREATMENT PLANT:

Land 147,608 821,866 969,474 ffulldings 17,649 17,649 338 2.00 Improvements Other Than Buildings 1,007,435 1,007,435 20,149 1.00 Machinery and Equipment 79,742 12,130 395 91,477 9,340 5.00 to 17.00 Construction Work in Progress 156,531 342,215 498,746 Total Wastewater Treat-ment Plant 1,408,965 1,176,211 395 2,584,781 29,827 Continued - 1

CITY OF LEESBURG, FI4RIDA

-UTILITIES REVENUE FUND

SUMMARY

SCHEDULE OF UTILITY PLANT IN SERVICE AND DEPRECIATION SCHEDULE 4 FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1978

SUMMARY

ASSETS DEPRECIATION BALANCE BALANCE (Beginning (End of' DEPRECIATION DEPRECIATION of Year) ADDITIONS DELETIONS Year) TAKEN RATES (%)

Total Electric Plant, Gas Plant, Water Plant and Wastewater Treatment Plant S 18,325,436 S 2,500,532 S 17,435 S 20,808,533 S 635,452 SANITARY SEWER PLANT:

Land 4,573 4,573 Buildings 9,468 9,468 180 2.00 Improvements Other Than Buildings 1,444,326 26,566 1,470,892 14,709 1.00 Machinery and Equipment 59,375 3,565 101 62,840 5,533 5.00 to 17.00 Total Sanitary Sewer Plant S 1,517,742 S 30,131 S 101 S 1,547,773 S 20,422 GRAND TOTALS (Exhibit I ) S 19,843,178 S 2,530,663 $ 17,536 S 22,356,306 S 655,874, Concluded - 2 l

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SEBRING UTILITIES COMMISSION SEBRING, FLORIDA REPORT OF EXAMINATION

{ SEPTEMBER 30, 1979 I

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I I SEBRING UTILITIES COMMISSION SEBRING, FLORIDA REPORT OF EXAMINATION I SEPTEMBER 30, 1979 I COMMISSIONERS AND OFFICERS I Robert G. Pollard, Chai rman Jim Fulton, Secretary Rex E. Bond, Vice Chairman James F. Holsonback, Assistant Secretary Ted Shoemaker, Commissioner J. H. Phillips, General Manager I

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l SEBRING UTILiTIFS C0tVilSS10N SEBRING, FLORIDA l

REPORT OF EXAMINATION SEPTEMBER 30, 1979 l

l TABLE OF CONTENTS i PAGE ACCOUNTANTS' REPORT 1

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l COMPARATIVE BALANCE SHEETS 2 COMPARATIVE STATEMENTS OF RETAINED EARNINGS 3 l "

COMPARATlVE STATEMENTS OF SOURCES OF FUNDS USED FOR CONSTRUCTION 4 COMPARATIVE

SUMMARY

STATEMENTS OF INCOME 5 COMPARATIVE STATEMENTS OF INCOME - ELECTRIC DEPARTMENT 6 COMPARATIVE STATEMENTS OF INCOME - WATER DEPARTMENT 7 COST OF ELECTRIC PLANT OPERATIONS AND FMINTENANCE 8 COMPARATIVE DETAll 0F GENERAL AND ADMINISTRATIVE EXPEriSES 9 NOTES TO THE FINANCIAL STATEMENTS 10 - 13 SUPPLEMENTARY FINANCIAL INFORMATION:

COST OF ELECTRIC PLANT OPERATIONS AND MAINTENANCE:

STEAM PLANT 14 NUCLEAR PLANT 15 DIESEL PLANT 16 I PURCHASED POWER 17

SUMMARY

OF PROPERTY, PLANT AND EqulPMENT 18 I

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l WICKS, BROWN & WILLI AMS I CERTIFIED PUDLIC ACCOUNTANTS t 40 S. Couunnce Avswur, P.O. Don S87 g,,,,

I Cuantas F.Wicus Sannswo, FLonion 33870 Ausnecam Inststuva or C.P.A/S r6enson funeme r C. . A.'s J. RsCManr. GnoWN (813) 382 1157 Fnamn t.. WsLuaus (883) 382-1157 l Sebring Utilities Comnission 368 South Commerce Avenue Sebring, Florida 1

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We hbve examined the balance sheets of Sebring Utilities Commission as of September 30, 1979 and September 30, 1978 and the related statements of retained earnings, sources of funds used for construction, and income for the years then ended.

I Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.

I in our opinion, the accompanying balance sheets, statements of retained earnings, sources of funds used for construction and income present fairly the financial position of Sebring Utilities Commission at September 30, 1979 and September 30, 1978 and the results of its operations and sources of funds used for construction for the years then ended, in conformity with generally accepted accounting principles applied on a consistent basis after giving retroactive effect to the change in the method of accounting for contributions from subdividers and customers as described in Note 3 to the financial statements.

l Y W) Y 4 y pagO Wicks, Efrown f, Williams March 6, 1980 I

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% SEBRiflG UTILITI ES C0litilSS10tl SEBRING, FLORIDA C0fiPAPATIVE BALANCE SHEETS I SEPTEtiBER 30, 1979 AND 1978 1979 1978 ASSETS PROPERTY, PLANT AND EQUlPfiEllT:

Property, plant and equip' ment in service $16,770,241 $15,611,322 Less: Accumulated depreciat ion 5,857,072 5,353,480 Total 10,913,169 10,25/,rA2 Construction work in progress 1,284,598 236,822 Huclear fuel - net 188,972 1s4,605 I Total property, plant and equipment 12,386,739 10,649,269 RESTRICTED ASSETS:

Sinking Fund 786,388 830,788 Renewal and Replacement Fund 113,022 104,753 L Consteruction Fund 564,736 1,643,071 Total restricted assets 1,464,146 2,578,612 E

I CURRENT ASSETS:

Cash 37,789 138,677 Accounts receivable, net of provision for doubtful accounts of $20,718 for 1979 and $32,308 for 1978 756,140 480,111 inventories 403,381 464,597 Accrued interest 5,694 15,638 Prepaid expenses 46,173 38,625 Total current assets 1,249,17/ 1,137,o48 DEFERRED CHARGES:

Unamortized bond expense 196,190 212,156 l

Other deferred charges 77,287 -

Total deferred charges 273,477 212,156 TOTAL ASSETS $11J2Lg $h577.685 g LIABILITIES AND CAPITALIZATION CAPITAll2AT10N:

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Long-term debt.

Revenue bonds payable Unamortized discount

$ 8,280,000 112,400) (

$ 8,400,000 126,000)

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Accrued interest on revenue bonds Revenue certificate payable, less amount due currently 200,000 44,313 Customer deposits 426,599 359,996 I Accrued pension liabilities Total long-term debt 27,590 8,621,789_

2,319 8,680,628 Equity:

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Contributed by City of Sebring Retained earnings Total equity 712,648 4,548,097 5,260,745 712,648 4,216,507 4.929.155 472,367 I

l Contributions in Aid of Construction Total capitalization 613,930_

14,696,464 14,082,150 CURRENT LIABILITIES:

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Current portion of revenue certificate Accounts payable Accrued expenses payable 50,000 556,817 70,258 429,344 66,191 i

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Total current liabilities 677,075 495,535 l 1

j TOTAL LIABILITIES AND CAPITALIZATION $15.373,539 $14,577,685 The notes to the financial statements are an integral part of this statement 2

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SEBRitiG UTILITIES COMMISSION I

l SEBRING, FLORIDA COMPARATIVE STATEMENTS OF RETAINED EARNINGS FOR THE YEARS ENDED SEPTEMBER 30,1979 AND 1978 1979 1978 l

RETAINED EARNINGS - BEGINNING:

As previously reported $4,688,874 $3,659,689 Adjustment (Note 3) ( 472,367) ( 394,189)

As restated 4,216,507 3,265,500 Net income for the year 689.904 1,279,226 l

Transfers to the City of Sebring:

Cash 185,000 165,000 l

1 Receivables balances 173,314 163,219 358,314 328,219 l RETAINED EARNINGS - END OF YEAR $4.548.031 $4 2_16J 02 I

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l SEBRING UTI LITIES C0dMISS10N SEBRING, FLORIDA COMPARATIVE STATEMENTS OF SOURCES OF FUNDS USED FOR CONSTRUCTION FOR THE YEARS ENDED SEFTEMBER 30, 1979 AND 1978 1979 1978 l

SOURCE OF FUNDS:

Funds derived f rom operations:

l Net income for the yea r $ 689,904 $1,279,226 Add: Items charged to net income not requiring cash o tlay Deprecia t ion 543,235 504,328 l Amortization of nuclear fuci 46,203 29,494 I

Bond expense and discount amortization 37,332 10,889 Accrued pension expense 25,273 26,705 l 1,341,947 1.850.642 I

Total funds derived f rom operations (Increase ) decrease in net current assets 70,011 ( 00,926) l Funds from financing and other sources:

1 Net bond proceeds - 1978 series - 8,061,844 Bonds refunded by defeasance - ( 7,297,000)

Proceeds from revenue certificate, less current poition 200,000 -

Accrued interest on bonded debt ( 44,313) ( 60,746)

Bonds redeemed ( 120,000) ( 110,000)

Decrease in unamortized bond expense f rom refunding - 174,769 increase in deferred charges ( 85,053) -

Net decrease (increase) in restricted cash 1,114,1661 ( 1,198,111)

Payrents and commitments to the City of Sebring ( 358,314) ( 328,219)

I Contributions in aid of construction Customer deposits Payment to fund accrued pension 1iability 141,564 66,602

(

78,178 54,469 60,000)

Total I FUNDS USED FOR CONSTRUCTION 914,952

$2_,326,910

( 684,816)

$1,034,900 I CHANGES IN NET CURRENT ASSETS:

Increase (decrease) in current assets:

Cash ($ 100,888) $ 49,247 276,029 22,434)

I Accounts receivable Inventories Accrued interest

(

61,216) 9,944)

(

139,700 9,176 Prepaid expenses 7,548 ( 1,488)

Decrease (increase) in current liabilities:

Current portion of revenue certificate ( 50,000) -

Accounts payable ( 127,473) ( 86,577)

Accrued expenses payable ( 4,067) ( 6,698)

INCREASE (DECREASE) IN NET CURRFNT ASSETS ($ 70,011) $ 80,926 I

The notes to the financial statements are an integral part of tFis statement I 4

E SEBRING UTlLITI ES COMMISSION SEBRING, FLORIDA COMPARATIVE

SUMMARY

STATEMENTS OF INCOME L FOR THE YEARS ENDED SEPTEMBER 30, 1979 AND 1978

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u 1979 1978 NET OPERATING INCOME:

7 Electric department (Page 6) $ 755,686 $ 793,133 Water depa rtment (Page 7) 238,166 115,555 Total net operating income 993,852 908,688 l

INTEREST INCOME (Af ter credit to construction costs of $25,650 in 1979) 157,920 79,967 Totals 1,151,772 988,655 OTHER DEDUCTIONS:

Interest expense (After charge to construction costs of $129,755 in 1979) 439, EA6 412,606 Pension expense - prior years service costs 22,024 20,579 Total other deductions 461,870 433,185 NET INCOME BEFORE EXTRA 0RDINARY ITEM 689,904 555,470 EXTRA 0RDlHARY ITEM:

Gain f rom refunding of revenue bonds (Note 6) - 723,756 NET INCOME $ 689.90ft $1.279.226 1

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[ SEBRING UTILITIES COMMISSION SEBRING, FLORIDA ELECTRI C DEPARTMENT COMPARATIVE STATEMENTS OF INCOME FOR THE YEARS ENDED SEPTEMBER 30, 1979 AND 1978 1979 1978 !

OPERATING REVENUE:

{ Sale of electricity Interdepa rtmental sales

$4,774,111 66,794

$4,357,735 69,183 Miscellaneous sales and services 73,064 86,646 r Total operating revenue 4,913,969 4,513,554 OPERATING EXPENSES:

Plant operations and maintenance (as shown by statement (Page 8)) 3,310,002 2,996,713 L Transmission system operations and maintenance:

Maintenance -

218 Dep rec ia t i on 30,148 30,139 Distribution system operations and maintenance:

Operating expenses:

Distribution circuits 2,333 1,168 Meters 4,247 5,108 I

l Street and rental lighting Maintenance expenses:

Distribution circuits 8,667 68,308 768 70,242 t

Meters 1,447 1,632 I

I Street and rental lighting Depreciation Overhead applied 7,634 202,867 67,576 6,715 175,086 65,454 h FICA, pension and payroll insurance 11,551 11,180 g State utility tax 49,432 56,944

' General and administrative expenses allocated (as shown by statement (Page 9)) 383,675 324,057 I

l Provis ion for uncollectible accounts receivable -

customers Total operating expenses 10,396 4,158,283 24,997 3,720,421 NET OPERATING INCOME $ 7 % .6 86_ $ 793.13_3 l

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SEBRING UTILITIES COMMISSION SEBRING, FLORIDA WATER DEPARTMENT COMPARATIVE STATEMENTS OF INCOME FOR THE YEARS ENDED SEPTEMBER 30,1979 AND 1978 1979 1978 7 OPERATING REVENUE:

L Sale of water $665,839 $526,206 Interdepartmental sales 3,600 3,600 Miscellaneous sales and services 9,611 7,502 Total operating revenue 679,050 537,308 OPERATING EXPENSES:

Production operations and maintenance:

Electricity for pumping 63,806 57,574 Other production operating expense 36,857 36,282 Maintenance expense 5,755 14,383

[ Transmission and distribution operations and maintenance:

Operating expense 9,161 11,170 Maintenance expense 29,973 30,226 Depreciation 119,806 107,432 Overhead applied 37,271 44,008 FICA, pension and payroll insurance 9,07 8 9,642 General and administrative expense allocated (as shown by s tatement (Page 9)) 127,892 108,019 Provision for uncollectible accounts receivable -

customers 1,285 3,017 Total operating expenses 440,884 421,753 NET OPERATING INCOME $238.166 $115.5%

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l SEBRING UTILITIES COMMISSION SEBRING. FLORIDA I COST OF ELECTRIC PLANT OPERATIONS AND MAINTENANCE FOR THE YEARS ENDED SEPTEMBER 30, 1979 AND 1978 l

1979 1978 Amount KWH Sold Amount KWH Sold KWH generated and purchased _109.750.191 106.130.783 l KWH sold and used .91 d0.1.977 ,

94.474.797-Operating supervision and engineering $ 51,921 $.00053 $ 47,029 $.00050 l

Fuel and tubricating oil 2,282,898 .02332 2,048,110 .02168 Other power generation expense 572,172 .00585 472,848 .00501 Maintenance supervision and engineering 27,781 .00028 18,296 .00019 l

Maintenance of structures 4,6 89 .00005 4,589 .00005 Maintenance of grounds 282 .00000 1,960 .00002 Maintenance of generating and electrical equipment 127,252 .00130 111,275 .00118 Depreciation 179,246 .00183 181,749 .00192 Overhead applied 17,862 .00018 15,917 .00017 FICA, pension and group insurance 45,899_ .00047 44,940 .00047 TOTALS $3 _. 310. 002 $ . 033 81 $_2.946.713 $.03119 Percent Percent I KWH 71,172,820 To Gross 64.85%

To Net 67.42%

KWH gene ra ted KWH purchased 38,577,371 35.15 36.54 I Totals 109,750,191 100.00 103.96 Less: Station power 4,183,558 3.81 3.96 105,566,633 100.00 I Less:

Net kiiowatt hours KWH sold and commission usage _97,901,977 96.16 89.20 92.74 lNDICATED LINE LOSSES 7.664.656 6.99% 7.26% !

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SEBRING UTILITIES COMMISS1074 SEBRING, FLORIDA COMPARATIVE DETAIL OF GENERAL AND ADMINISTRATIVE EXPENSES FOR THE YEARS ENDED SEPTEMBER 30, 1979 AND 1978 1979 1978 Administrative and general office salaries $109,406 $101,646 Office expense and supplies 52,442 49,408 Customer records and collection expense 92,587 71,794 Meter reading expense 27,203 22,593 Data processing expense 43,286 37,876 1

Outside services employed 41,627 30,928 l Property insurance and surety bonds 51,693 47,227 FICA, employee pension and group insurance 37,827 28,151 l Office rent 13,939 6,224 Maintenance of general plant 1,749 4 86 l

Depreciation 11,168 9,922 Overhead applied ,

12,477 9,422 Elect ric and water expense 2,988 11,609 l Advertising 2,603 1,041 Miscellaneous expense 10,572 ._3,749 TOTALS $51L161. $43 2 . 07_6_

l ALLOCATION OF GENERAL AND ADMINISTRATIVE EXPENSES:

Electric Department - 75% $383,675 $324,057 l

Water Department - 25% 127,892 108,019 l

TOTALS $51Li61 $432.076 l

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SEBRING UTILITIES COMMISSION SEBRING, FLORIDA NOTES TO THE FINAi4CI AL STATEMENTS SEPTEMBER 30, 1979 I Note 1 - The Sebring Utilities Commission is an independent special district that is incorporated under the laws of the State af Florida.

I Note 2 - Sumary of Significant Accounting Policies-I The financial statements have been prepared on the accrual basis of accounting based upon the Uniform System of Accounts prescribed for electric utilities by the Fedeial Energy Regulator Commission and opon the Uniform System of Accounts for water utilities issued by the I National Association of Regulatory Utility Commissioners.

Property, plant and equipment are stated at cost. Construction costs

,I include payroll and related costs such as taxes, pensions, and other fringe benefits, and allocation of indirect charges for engineering, supervision and transportation expenses. Construction period interest has been capitalized. The assets are depreciated over estimated useful I lives ranging from 5 to 50 years, using the straight-line method of depreciation. A summary of property, plz,at and equipment and accumulated depreciation is included on Page 18 of this report.

I Maintenance is charged in the electric plant accounts at cost, net of estimated energy consumed. The amount consumed is charged to nucicar I fuel expense. Amortization of energy consumed has been determined by the unit-of production riethod, based on engineering estimates. Nuclear fuel expcase does not include a provision for salvage value nor a provision for future disposition costs.

Unbilled utility revenues are accrued based on the estimaged usage between the last meter reading dates and year end.

Inventories are stated at the lower of cost or market. Cost is determined generally on an average cost method, except for fuel inventory costs, which are determined using the last-in, first-out (LIF0) method.

I Reusable materials that have been removed from service are included in inventories at the carrying value of similar new materials.

I lssuance discount and expenses related to the long-term bonded debt; are deferred and amortized over the life of the debentures on the bonds outstanding method.

Note 3 - Contributions in Aid of Construction:

Subdividers and customers are required to pay part of the cost required to I install and connect water lines and services. Prior to the current year such amounts received by the Commission were included in revenue. In order to conform with generally accepted accounting principles, amounts I received in 1979 were credited to the contributions account in the balance sheet. Accordingly, the financial statements for 1978 have been retroactively restated to conform with principles applied in the current year.

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L SEBRING UTILITIES COMMISSION SEBRING, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1979 Note 3 - Contributions in Aid of Construction (Continued):

The effect of the adjustment was to decrease prior year beginning retained p carnings and ending retained earnings by $394,189 and $472,367 respectively, L and to decrease net income for the years ended September 30, 1979 and 1978 by $141,563 and $78,178 respectively.

Note 4 - Long-Term Debt:

Revenue bonds outstanding at September 30, are as follows:

1979 1978 Series of 1978, 5.5% to 6.8% due serially to 2000 $8,280,000_ $8,400,000 in September 1978, the Commission provided for advance refunding of the Series 1964, 1973 and 1975 revenue bonds (Refunded Bonds) by the sale of

{ $8,400,000 Utilities System Revenue Bonds (Series 1978) and $5,670,000 Utilities System Special Obligation Bonds (Series 1978A). From the proceeds of the sale of the two issues, and other sources, sufficient monics were deposited into irrevocable escrow accounts, and invested in United States obligations that will provide sufficient funds for the payment of the maturing principal and interest on the Series 1964, 1973 and 1975 outstanding revenue bonds. The Refunded Bonds have been treated as extinguished debts as explained in Note 6. If for any reason the funds held in escrow are not suf ficient to make payments on the Refunded Bonds, the holders of the bonds will have a claim on net revenues superior to the holders of the 1978 series bonds to the extent required to make up the insufficiency. I l

The Revenue Bonds (Series 1978) are secured by a pledge of the net revenues of the Commission. The Special Obligation Bonds (Series 1978A) are secured by a pledge of the interest to be paid on the escrow funds.

The resolution provided, anong other things, that revenues shall be used as follows (amounts shown are monthly requirements for fiscal 1980):

p First, to pay operating and maintenance expense $338,000 L Next, to debt service fund:

For principal 10,000 For interest 43,763 Next, to the sinking fund:

Reserve (no addition is required, as the reserve is fully funded) -

Next, to fund plant renewals and replacements:

5% of gross plant, excluding generation and transmission plant, for normal improvements 37,065 For emergency and facilities account, expendable only for extraordinary plant renewals 22,556 r

Total monthly requirement $451,384 11

I SEBRING UTILITIES COMMISSION I SEBRING, FLORIDA NOTES TO THE FINANCI AL STATEMENTS SEPTEMBER 30, 1979 I NOTE 4 - Long-Term Debt (Cont'd)

The maturity schedule for the Revenue Bonds (Series 1978) is as follows:

Total I Year Ending October 1 1980 $

Principal Amount 120,000 I n t e res t

$ 525,160 $

Principal and Interest 645,160 g '

1981 130,000 518,560 648,560 130,000 511,4i0 641,4io 5 1982 1983 140,000 504,260 644,260 1984 290,000 496,560 786,560 I 1985 1986 1987 300,000 310,000 330,000 480,320 463,220 445,240 780,320 773,220 775,240

,g 1988 350,000 425,770 775,770

'g 1989 370,000 404,770 774,770 1990 390,000 382,200 772,200 1991 410,000 358,020 768,020 1992 -

430,000 332,190 762,190 1993 460,000 305,100 765,100 1994 490,000 275,660 765,660 lE 1995 520,000 243,8i0 763,8i0 l3 1996 550,000 209,490 759,490 1997 580,000 173,190 753,190

.g 1998 620,000 134,330 754,330

'999 660,000 92,480 752,480 I 2000 700,000 47,600 747,600 TOTALS $ 8.2 80.000 $L329.340 $18i .609. 340 The Revenue Certificates are payable $50,000 annually beginning September 30,

.g 1980, plus interest at 7.25%. The certificates are junior lien to the Revenue Bonds.

E Note 5 - Employee Pension Plan:

j The Commission has a pension plan covering the majority of its employees.

'M Pension expense amounted to $70,189 and $72,789 in 1979 and 1978 respectively, including amortization of prior service costs over forty years. At September 30, 1979, the value of the pension fund was in excess of the actuarially iI computed value of vested benefits. Unfunded prior service cost was approximately $394,500 at September 30, 1979 Note 6 - Extraordinary item:

l In connection with the September 1978 advance refunding of bonds as described l In Note 4, a gain was recognized. The escrow account described in Note 4 is I sufficient in amount so that operating revenues should not be needed to meet debt service requirements on the Refunded Bonds. Accordingly, the transaction has been recognized as a completed refinancing.

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SEBRit1G UTILITIES COMMISS10f4 f10TES TO THE FillAllCIAL STATEMEilTS SEPTEMBER 30, 1979 tiote 7 - Insurance in Force:

Coverage Limits Workmen's Compensation & Employer's Liability $ 500,000 l r Automobile L , Bodily injury - Each Person $1,000,000

- Each Occurrence $1,000,000 Property Damage - Each Occurrence $ 100,000

{ Uninsured Motorist - Each Person

- Each Accident 15,000 30,000 General Liability Bodily injury - Each Occurrence $1,000,000 F Property Damage - Each Occurrence $ 100,000 I Fire, Lightning and Extended Coverages Listed items - 80% Co-Insurance $4,174,400

{ Listed items - 80% Co-insurance $2,536,050 l

l Boiler and Machinery - Each Accident $7,500,000 tJote 8 - Investment of Restricted Funds:

Restricted fund investments are carried at cost. At September 30, 1979, l the Emergency and Facilities Account and the Construction Fund were I

l invested in short-term certificates cf deposit. The Sinking Fund Reserve is invested as follows:

l Cost 9/30/79 Market Value 9/30/79 3/5/G0 U. S. Treasury Bond $178,888 $163,070 $126,911 Federal Farm Credit Bond 607,500 600,000 595,020 Totals $786,388 $763,070 $721,931 l

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I SUPPLEMENTARY FINANCIAL INFORMATION I Dur examination has been made primarily for the purpose of formulating an opinion on the basic financial statements, taken as a whole, and the other data included in this report, although not considered necessary for a fair presentation I of the financial position, results of operations, and sources of funds used for construction in conformity with generally accepted accounting principles, are presented for supplementary analysis purposes.

The additional information in the following pages has been subjected to the audit procedures applied in the examination of the basic financial statements and I is in our opinion fairly stated in all material respects in relation to the basic financial statements taken as a whole.

M.4cb N? wen + A:4YifN-:/

Wicks, Brown & Williams March 6, 1980 I

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I SEBRING UTILITIES COMMISSION I COST OF ELECTRIC PLANT OPERATIONS AND MAINTENANCE - STEAM PLANT YEARS ENDED SEPTEMBER 30, 1979 AND 1978 I Year Ended 9/30/79 Amount KWH Sold Year Ended 9/30/78 Amount KWH Sold KWH generated' 50,713,600 40,879,230 KWH sold and used 44,297,504 35,088,116 Operating supervision and engineering $ 17,676 $.00040 $ 16,684 $.00048 Fuel and lubricating oil 908,230 .02050 676,204 .01927 Other operating expense 155,805 .00352 165,585 .00472 Maintenance supervision and engineering 19,662 .00044 13,008 .00037 Maintenance of structures 2,256 .00005 1,842 .00005 Maintenance of grounds 282 .00001 1,961 .00006 Maintenance of generating and electrical equipment 59,334 .00134 51,719 .00147 Depreciation 68,210 .00154 68,138 .00194 Overhead applied 1,863 .00004 1,770 .00005 FICA, pension and group insurance 31,717 .00072 30,822 .00088 Totals $1,265,035 $.02856 $1,027,733 S.02929 Percent to Percent KWH Gross to Net KWH generated 50,713,600 100.00% 106.17%

Less: Station power 2,948,085 5.81 6.17 Net kilowatt hours. 47,765,515 94.19 100.00 Less: KWH sold and commission usage 44,297,504 87.35 92.74 INDICATED LINE LOSSES 3,468,011 6.84% 7.26%

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4 SEBRING UTILITIES COMMISSION I COST OF ELECTRIC PLANT OPERATIONS AND MAINTENANCE - NUCLEAR PLANT YEARS ENDED SEPTEMBER 30, 1979 AND 1978 I Year Ended 9/30/79 Amount KWH Sold Year Ended 9/30/78 Amount KWH Sold KWH generated 17,603,220 12,152,821 KWH sold and used 15,505,533 10,724,725 I Operating supervision and engineering $ 9,380 $.00060 $ 8,383 S.00078 Fuel and' lubricating oil 46,491 .00300 29,742 .00277 Other operating expense 126,458 .00816 101,183 .00943 I Maintenance supervision and engineering 8,118 .00052 5,288 .00049 Maintenance of structures 1,584 .00010 2,719 .00025 Maintenance of generating and electrical equipment 38,587 .00249 23,750 .00221 Depreciation 74,891 .00483 78,145 .00729 Overhead applied 15,139 .00098 13,337 .00125 Totals $ 320,648 $.02068 $ 262,547 $.02447 Percent to Percent KWH Gross to Net KWH generated 17,603,220 100.00% 105.29%

Less: Station power 883,773 5.02 5.29 Net kilowatt hours 16,719,447 94.98 100.00 Less: KWH sold and commission usage 15,505,533 88.08 92.74 INDICATED LINE LOSSES 1,213,914 6.90% g%

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SEBRING UTILITIES COMMIS3 ION COST OF ELECTRIC PLANT OPERATIONS AND MAINTENANCE - DIESEL PLANT F YEARS ENDED SEPTEMBER 30, 1979 AND 1978 L

Year Ended 9/30/79 Year Ended 9/30/78 g Amount KWH Sold Amount KWH Sold KWH generated 2,856,000 5,507,900 KWH sold and used 2,322,476 4,467,892 Operating supervision and r engineering $ 24,866 $.01071 $ 21,962 $.00492 L -

Fuel and lubricating oil 107,524 .04629 160,333 .03589

( Other operating expense 54,717 .02356 58,187 .01302 Maintenance of structures 849 .00037 28 .00001 Maintenance of generating and electrical equipment 29,331 .01263 35,806 .00801 h Depreciation 36,145 .01556 35,465 .00793 Overhead applied 860 .00037 811 .00018 FICA, pension and group insurance 14,182 .00611 ,

14,117 .00316 Totals $ 268,474 5.11560 $ j 26,709 $.07312 Percent to Percent

( KWH Gross to Net KWH generated 2,856,000 100.00% 114.04%

Less: Station power 351,700 12.31 14.04

[. Net kilowatt hours 2,504,300 87.69 100.00 Less: KWH sold and commission usage 2,322,476 81.32 92.74 INDICATED LINE LOSSES 181,824 6.37% 7.26%

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I SEBRitJG UTI LITI ES COMtilSS10!i I SEBRitJG, FLORI DA COST OF ELECTRIC PLANT OPERAT10 tis AND MAINTErlANCE - PbRCHASED POWER FOR THE YEARS EtIDED SEPTEMBER 30, 1979 AND 1978 1979 1978 Amount KWH Soid Amount KWH Sold i l

l KWH purchased g_Jil7.,Jll, 47.590.832 l

KWH sold and used 35 ~,76.464 44.197.606 Fuel and lubricating oil ?1,220,654 $.03412 $1,181,831 $.02674 l i

Other operating expense 235,191 .00657 147,892 .00335 TOTALS S_1.455.84.5 $ . 04063 $L123.J23. $,03003 !

I Pe rcen t Percent l

_ KWH To Gross To Het KWH purchased 38,577,371 100.00% 100.002 j Less: Station power I

Net kilowatt hours 38,577,371 100.00 100.00 l Less : KWH sold and commission usage 35,776,464 92.74 92.74 INDICATED LINE LOSSES __2.800.907_ 7,263 7.26%

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I I The notes to the financial statements are an integral part of this statement 1

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SEBRING UTILITIES SEBRING, FLC I'

SUMMARY

OF PROPERTY, PLA SEPTEMBER 30J Cos t of Assets Balance 10-1-78 Additions Deductions l

Land $ 213,431 $ 4 , 81 9 $ -

Power plant - diesel 2,439,273 1,403 -

- steam 2,823,960 361

- nuclear 2,072,508 2,029 -

Electric transmission system 904,747 95,285 -

i l Electric distribution system 4,020,338 703,685 27,577 water system 2,586,227 383,752 -

Equi pment 501,013 122,174 12,066 Storage buildings 49,825 32,611 -

Work in progress 236,822 2,082,941 1,182,722 i Nuclear fuel assemblies 154,605 80,570 46,203 l:

L TOTALS $16.002.749 $3.509.630 $1.268.568

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(MMISSION IDA r AND EQUIPMENT 1979 Accumulated Depreciation Net Book Balance Balance Balance Value 9-30-79 10-1-78 Additions Deductions 9-30-79 9-30-79

$ 218,250 $

$ 218,250 2,440,676 1,824,135 36,145 - 1,860,280 580,396 2,024,321 804,189 68,210 - 872,399 1,951,922 2,074,537 112,226 74,891 - 187,117 1,887,420 1,000,032 127,777 30,148 - 157,925 842,107 4,696,446 1,099,722 162,353 27,577 1,234,498 3,461,948 2,969,979 1,067,082 106,988 - 1,174,070 1,795,909 611,121 296,260 61,343 12,066 345,537 265,584 82,436 22,089 3,157 - 25,246 57,190 1,137,041, - - - - 1,137,041 188,972 - - - - 188,972

$ 18.243. 811 $5. 353.480 $543.235 $39.643 $5.857.072 $ 12. 3 86.739

's an integral part of this statement 18

O SEBRING UTILITIES COMMISSION Sebring, Florida REPORT OF EXAMINATION Year Ended September 30, 1978 O

O SEBRING UTILITIES COMMISSION Sebring, Florida REPORT OF EXAMINATION September 30, 1978 COMMISSIONERS AND OFFICERS J. A. Butler, Chairman Rex E. Bond, Secretary Robert G. Pollard, Vice Chairman Jim Fulton, Assistant Secretary

James E. Holsonback, Commissioner J. H. Phillips, General Manager 4

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SEBRING UTILITIES COMMISSION ,

REPORT OF EXAMINATION September 30, 1978 CONTENTS Page Accountants' Report 1 Comparative Balance Sheets 2 Comparative Statements of Retained Earnings 3 Comparative Statements of Sources of Funds Used for Construction 4 Comparative Summary Statements of income 5 Comparative Statements of Income -

Electric Department 6 Comparative Statements of income -

Water Department 7 Cost of Electric Plant Operations and Maintenance 8 Comparative Detail of General and Administraths Expenses 9 Notes to the Financial Statements 10 - 13 Supplementary Financial Information Cost of Electric Plant Operations and Maintenance Steam Plant 14 Diesel Plant 15 Nuclear Plant 16 Purchased Power 17 Summa ry of Property, Plant and Equipment 18 b

Q WICKS & WICKS CERTIFIED PUBLIC ACCOUNTANTS 140 SOUTH COMMERCE AVENUE P. D. BOX 587 SEBRING. FLORIDA 33870 (eta) Sea.t157 CHARLES F. WICKE, C.P.A. LAKE PLACID OFFICE NORMAN W. WICK 5, C.P.A. 19 south MAIN STREET P. D. SDX 1136 (813) 4652835 Sebring Util h ies Commission 368 South Commerce Avenue Sebring, Florida 1

We have examined the balance sheets of Sebring UtI11 ties Com-mission as of September 30, 1978 and September 30, 1977 and the related -

statements of retained earnings, sources of funds used for construction, and income for the years then ended. Our examination was made in accor-dance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.

In our opinion, the accompanying balance sheets, statements of retained earnings, sources of funds used for construction, income and notes to the financial statements present fairly the financial position of Sebring Utilities Commission at September 30, 1978 and September 30, 1977 and the results of Its operations for the years then ended, in conformity with generally accepted accounting principles applied on a consistent basis. ;

Respectfully submitted, ,

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Certified Public Accountants Sebring, Florida .

December 22, 1978 l

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o Members: Amwican Institute of Casilflod hWic Accountants - Awide lastitute d Cwtified PuWie Accountants

C SEBRING UTILITIES COMMISSION ,

l COMPARATIVE BALANCE SHEETS September 30, 1978 and 1977

{

f 9/30/77

, Assets 9/30/78 l Property, Plant and Equipment:

Property, plant and equipment in service $15,611,322.48 $14,627,933.60 Less: Accumulated depreciation 5,353,480.68 4.894,5 % .84 10,257,841.80 9,733,336.76 Total 231,662.88 Construction work in progress 236,822.28 154,604.71 133,190.92 Nuclear fuel - net 10,649,268.79 10,098,190.56 Total property, plant and equipment Restricted Assets: ,

Sinking fund: '

Cash on deposit 505.17 Certificates of deposit 830,788.13 765,027.50 Renewal and replacement fund: ,

Cash on deposit 93.60 20,853.03 Certificates of deposit 104,659.40 110,000.00 Construction fund: 31,417.85 Cash on deposit 43,070.57 Certificates of deposit 1.600,000.00 452,697.03 Total restricted assets 2,578,611.70 1,380.500.58

Current Assets: 89,430.34 I Cash on hand and in bank 138,677.64 Accounts receivable: i Customers, less allowance for uncollectible accounts in 1978 of $31,023 01 and in 1977 -

of $16,554.23 474,980.51 410,569.62l Other, less allowance for uncollectible in ;

1978 of $1,285.45 and in 1977 of $1,285.45 5,129.69 91,974.15i Inventorles 464,597.38 324,897.36:

Accrued interest receivab'e 15,638.29 6,462.16:

Prepaid expenses 38,625.39 40,113 72i Total current assets 1,137,648.90 % 3,447.35i Deferred Charge:

Unamortized bond expense 212,155.75 185,658.86 Total assets $14.577.685.14 $12.627.797.E

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r Equity and Liabilities 9/30/78 9/30/77 Equity:

Contributed by City of Sebring $ 712,647.47 $ 712,647.47 Ratained earnings 4,688,873.22 3,659,688.35 Total equity 5,401,520.69 4,372,335.82 Long-Term Debt: (Note 3)

Funded debt:

Revenue Bonds payable:

- 2,117,000.00 Series of 1964 - 1,990,000.00 Series of 1973 - 3,300,000.00 Series of 1975 Series of 1978 8,400,000.00 -

Less: unamortized discount ( 126,000.00) -

Total funded debt 8,274,000.00 7,407,000.00 44,313.33 105,059.16 Acc rued interest on revenue bonds 359,996.40 305,527.80 Customer utility deposits Accrued pension IIabilities 2,319.47 35,614.07 (Note 6) 7,853,201.03 Total long-term debt 8,680,629.20 Current Liabilities:

Accounts payable 429,344.34 342.767.80 Social security tax payable 8,905.94 6,994.40 State sales tax payable 7.341.39 6,189.77 Accrued state utility tax 15,046.36 17,761.69 Accrued payroll 34,897.22 28,546.84 Total current liabilities 495,535.25 402,260.50 Total equity and liabilities $14.577.685.14 $12.627.797.35 i

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The accompanying notes to the financial state-ments are an integral part of this statement.

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SEBRING UTILITIES COMMISSION COMPARATIVE STATEMENTS OF RETAINED EARNINGS Years Ended September 30, 1978 and 1977 Year Ended Description 9/30/78 9/30/77 Net income for the year $1,357,403.55 $ 649,831.56 Deduct:

i Transfer of utility account receivable balance to the City of Sebring:

Balance at September 30, 1978 160,487.91 -

Balance at September 30, 1977 - 125,880.62 Transfer of miscellaneous account receivable balance to the City of Sebring:

Balance at September 30, 1978 2,730.77 -

Balance at September 30, 1977 - 6,854.47 Transfer of cash to the City of Sebring 165,000.00 150,000.00 Total deductions 328,218.68 282,735.09 Balance of net income for the year, transferred to retained earnings 1,029,184.87 367,096.47 Retained earnings balance, beginning of year 3,659,688.35 3,292,591.88 Retained earnings balance, end of year $4.688.873.22 $3.659.688.35 The accompanying notes to the financial state-O , ments are an integral part of this statement.

SEBRING UTILITIES COMMISSION O COMPARATIVE STATEMENTS OF SOURCES OF FUNDS USED FOR CONSTRUCTION Years Ended September 30, 1978 and 1977 Year Ended Description 9/30/78 9/30/77 Source of Funds:

Funds derived f rom operations:

Net income for the year $1,357,403.55 $ 649,831.56 Add:

Items charged to net income not requiring cash outlay:

Depreciation 504,327.60 446,141.87 ,

Amortization of nuclear fuel 29,494.20 29,964.73 Bond expense and discount amortization 10,889.28 15,134.94 Accrued pension expense 26,705.40 35,614.07 Total funds derived from operations 1,928,820.03 1,176,687.17 Net (Increase) decrease in net current assets (exclusive of short-term debt) ( 80,926.80) ( 92,812.69)

Funds f rom financing and other sources:

Net bond proceeds - 1978 series 8,061,844.25 -

t Bonds refunded by defeasance ( 7,297,000.00) -

Net increase (decrease) in short-term borrowing -

( 270,000.00)

Accrued interest on bonded debt ( 60,745.83) ( 1,300.04)

Bonds redeemed ( 110,000.00) ( 157,000.00)

Decrease in unamortized bond expense from refunding 174,769.58 -

Net decrease (Increase) In restricted cash ( 1,198,111.12) 550,084.16 Payments and commitments to the City of Sebring ( 328,218.68) ( 282,735.09) ;

increase in customer utiiity deposits 54,468.60 57,777.00 Payment to fund accrued pension 1labIIIty ( 60,000.00) ( 111,302.78)

Total ( 762,993.20) ( 214,476.75)

Funds Used For Construction $1.084.900.03 $ 809.397.73 Changes in Net Current Assets (Exclusive of '

Short-Term Debt):

Increase (decrease) in current assets:

Cash on hand and in bank $ 49,247.30 $ l'1,219.55 Accounts receivable - net ( 22,433.57) 153,768.42 inventories 139,700.02 8,547.36 Accrued interest receivable 9,176.13 ( 11,583 26)

Prepaid expenses ( 1,488.33) 11,652.02 Decrease (Increase) In current liabilities:

Accounts payable . ( 86,576.54) ( 68,246.84) '

Social security tax payable ( 1,911.54) ( 1,176.75)

State sales tax payable ( 1,151.62) ( 2,683.49)

Accrued expenses ( 3,635.05) ( 8,684.32)

Net increase in net current assets (exclusive of short-term debt) $ 80.926.80 $ 92.812.69 g The accompanying notes to the financial state-ments are an integral part of this statement.

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SEBRING UTILITIES COMMISSION b COMPARATIVE

SUMMARY

STATEMENTS OF INCOME Years Ended September 30, 1978 and 1977 Year Ended Description 9/30/78 9/30/78 Net Operating income:

Electric department (Page 6) $ 793,132.35 $ 780,369.57 Water department (Page 7) 193,732.17 159,925.91 Total net operating income 986,864.52 940,295.48 Other income:

Allens of Florida recovery (Note 5) - .15,737.23 I nte res t income (af ter credit to construction costs in ' 1977 or $37,541.75) 79,967.27 59,966.72 Total income 1,066,831.79 1,015,999.43 Other Deductions:

Financing expense:

Interest expense 1961 Issue revenue bonds - 3,160.64 1964 issue revenue bonds 69,523.36 76,443.50 1973 issue revenue bonds (af ter charge to construction costs of $16,851.22 in 1977) % ,685.16 92,0 % .24 1975 issue revenue certificates (af ter charge to construction costs of $73,865.76 in 1977) 191,194.90 135,431.45 1978 issue revenue bonds 44,313.33 -

Other . 13,611.10 Amortization of discount and costs of revenue bonds 10,889.28 15,134.94 Total financing expense 3 412,606.03 335,877.87 Pension expense - prior years service cost 20,578.74 30,290.00 Total other deductions 433,184.77 366,167.87 Net income Before Extraordinary items 633,647.02 649,831.56 Extraordinary items:

Gain f rom refunding of revenue bonds (Note 7) 723,756.53 -

Net income $1,357,403.55 $ 649,831.56 1

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I) SEBRING UTILITIES COMMISSION ELECTRIC DEPARTMENT COMPARATIVE STATEMENTS OF INCOME Years Ended September 30, 1978 and 1977 Year Ended Description 9/30/78 9/30/77 Operating Revenue:

Sale of electricity $4,357,725.42 $3,750,993.25 Wholesale - 85,218.43 Interdepartmental sales 69,182.61 72,171.79 Gas supplier recovery (Note 6) - 90,952.00 Miscellaneous sales and services 86,646.12 87,274.54 Total operating revenue E713,554.15 4,086,610.01 ,

Operating Expenses:

Plant operations and maintenance - as shown by statement (Page 8) 2,946,712.68 2,625,738.98 Transmission system operations and maintenance:

Maintenance 217.51 898.06 Dep reciation 30,139.05 30,122.63 Distribution system operations and maintenance:

Operating expense:

Distribution circuits 1,168.70 4,528.41 Mete rs 5,108.27 7,409.69 Street and rental lighting 768.44 166.73 Maintenance expense:

Distribution circuits 70,262.18 58,957.59 l Meters 1,632.00 1,714.23 Street and rental lighting 6,715.47 6,299.50 Depreciation 175,086.23 155,798.31 Overhead applied 65,454.03 42,786.83 FICA, pension and payroll insu rance 11,180.13 8,860,10 State utility tax 56,943.72 55,227.92 General and administrative expense allocated.-

as shown by statement (Page 9) 324,056.79 296,988.81 Provision for uncollectible accounts receivable- '

cus tomers ' 24,996.60 10,742.65 Total operating expenses 3,720,421.80 3,306,240.44 Net Operating income $ 793.132.35 $ 780.369.57 The accompanying notes to the financial state-() ments are an integral part of this statement.

4)> SEBRING UTILITIES COMMISSION WATER DEPARTHENT COMPARATIVE STATEMENTS OF INCOME Years Ended September 30, 1978 and 1977 Year Ended Description 9/30/78 9/30/77 Operating Revenue:

Sale of water $526,205.69 $470,916.60 System charges to customers 21,900.00 15,160.00 t Interdepartmental sales 3,600.00 3,600.00 Miscellaneous sales and service 63,779.91 44,837.46 Total operating revenue 615,485.60 534,514.06 Operating Expenses:

Production operations and maintenance:

Electricity for pumping 57,573.88 62,065.19 Other production operating expense 36,281.64 25,796.60 Maintenance expense 14,382.51 4,710.39 Transmission and distribution operations and maintenance: '

Operating expense 11,170.19 10,765.58 Maintenance expense 30,226.18 25,671.65 i Dep reciation 107,432.22 95,496.68 .'

Overhead applied 44,008.33 39,482.24 FICA, pension and payroll insurance 9,642.48 6,211.00 General and administrative expense allocated -

-as shown by statement (Page 9) 108,018.93 98,996.27 Provision for uncollectible accounts receivable -

customers 3,017.07 1,352.20 Tank supplier settlement - 4,040.35 Total operating expenses 421,753.43 374,588.15 Net Operating inccme $191.732.17 $,1gggggjag!

i i

() The. accompanying notes to the financial state-ments are an integral part of this statement.

O SEBRING UTILITIES COMMISSION COST OF ELECTRIC PLANT OPERATIONS AND MAINTENANCE Years Ended September 30, 1978 and 1977 Year Ended 9/30/78 Year Ended 9/30/77 Description Amount KWH Sold Amount KWH Sold KWH generated and purchased 106.130.783 100.415.898 KWH sold and used 94.474.797 90.448.130 Operating supervision and engineering $ 47,029.34 S.00050 $ 40,477.57 $.00045 Fuel and lubricating oil 2,048,109.55 .02168 1,874,537.51 .02073 Other power generation expense 472,848.04 .00501 408,008. % .00451 Maintenance supervision and engineering 18,295.71 .00019 4,766.16 .00005 Maintenance of structures 4,589.00 .00005 4,586.38 .00005 Maintenance of grounds 1,960.51 .00002 1,374.07 .00002 Maintenance of generating and electrical equipment 111,274.93 .00118 106,706.76 .00118 Depreciation 181,748.56 .00192 140,773.85 .00156 Overhead applied 15,917.47 .00017 7,150.16 .%0C.

FICA, pension and group insurance _ 44.939.57 .00047 37,357.56 .00040 Totals $ g y.712.68 $.03119 $2.625.738.98 S.02903 Percent to Percent to KWH G ross Net ,_

KVH generated 58,539,951 55.16% ' 57.!4%

KWH purchased 47,590,832 44.84 46.78 Total 106.130,783 100.00 104.X Less: Station power 4,398, % 6 4.14 4.32 Net killowatt hours 101,731,817 95.86 100.60 Less: KWH sold and commis-sIon usage 94,474,797 89.02 92.g Indicated line losses 7.257.020 6.84% JJ%

The accompanying notes to the financial state-O ments are an integral part of this statement.

l

() SEBRING UTILITIES COMMISSION 4

COMPARATIVE DETAIL OF GENERAL AND ADMINISTRATIVE EXPENSES Years Ended September 30, 1978 and 1977 Year Ended Description 9/30/78 9/30/77 Administrative and general office salaries $101,645.92 $ 80,068.64 Office expense and supplies 49,408.04 36,051.60 Customer records and collection expense 71,794.28 63,040.71 Meter reading expense 22,593.46 19,830.43 Data processing expense 37,875.93 33,241.86 Outside services employed 30,927.96 52,766.34 Property insurance and surety bonds 47,226.98 48,357.06 FICA, employee pension and group Insurance 28,150.72 23 312.53 Office rent 6,223.92 6,223.92 Maintenance of general plant 486.30 851.87 Depreciation 9,921.54 12.950.40 Overhead applied 9,422.26 5,641.97 Electric and water expense 11,608.73 10,106.60 Advertising 1,041.21 2,810.55 t

Miscellaneous expense 3,748.47 730.60 Totals $432.075.72 $335ggggg d11ocation of general and administrative '

expenses:

Electric department - 75% $324,056.79 $296,988.81 l Water department - 25% 108,018.93 98,996.27 Totals $432.075.72 $M i

The accompanying notes to the financial state--

() .ments are an Integral part of this statement.

() ' SEBRING UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS September 30, 1978 Note 1 - The Sebring Utilities Commission is an enterprise fund of the City of Sebring that is incorporated under the laws of the State of Florida.

Note 2 - Summary of Significant Accounting Policies The financial statements have been prepared on the accrual basis of accounting, recognizing income when earned and expense as incurred. ,

Property, plant and equipment are stated at cost and, in accordance I with industry practice, construction period interest has been cap- !

italized. The assets are depreciated over estimatpd useful IIves using the straight-line method of depreciation. A' summary of pro-perty, plant and equipment and accumulated depreciation is included on Page 18 of this report.

Maintenance is charged with the cost of repairs of property and the plant accounts are charged with the cost of renewals and replace-ments. ;

r Nuclear fuel is carried in the electric plant accounts at cost, net of estimated energy consumed. The amount consumed is charged to nuclear fuel expense. Amortization of energy consumed has been determined by the unit-of-production method, based on engineering estimates. Nuclear fuel expense does not include a provision for ;

salvage value nor a provision for future disposition costs.

Inventories are stated at the lower of cost or market. Cost is determined generally on an average cost method, except for fuel inventory costs, which are determined using the last-In, first-out (LIFO) method. Reusable materials that have been removed from service are included in inventories at the carrying value of similar new materials.

Issuance discount and expenses related to the long-term bonded debt

-are deferred and amortized over the Ilfe of the debentures on the bonds outstanding method.

Note 3 - Long-Term Debt Revenue bonds outstanding at September 30, are as follows:

E)

O SEBRiNo uTitiTiES COMaiSSiON NOTES TO THE FINANCIAL STATEMENTS September 30, 1978 Note 3 - Long-Term Debt (Continued) 1978 1971 Series of 1964, 3% to 3.7%

due serially to 1993 $

- $2,117,000.00 Series of 1973, 4% to 6.5%

due serially to 1995 - 1,990,000.00 Series of 1975, 5.8% to 6.8%

due serially to 1998 - 3,300,000.00 Series of 1978, 5.5% to 6.8%

due serially to 2000 8,400,000.00 -

$8.400.000.00 $7.407.000.00 in September 1978, the Commission provided for advance refunding of the Series 1%4,1973, and 1975 revenue bonds (Refunded Bonds) by the sale of $8,400,000.00 Utilities System Revenue Bonds (Series 1973) and

$5,670,000.00 utilities System Special Obligation Bonds (Series 1978A). ,

From the proceeds of the sale of the two issues, and other sources, sufficient monies were deposited into irrevocable escrow accounts, and invested in United States obilgations that will provide suffi- i cient funds for the payment of the maturing principal and interest on the Series 1%4,1973, and 1975 outstanding revenue bonds. The Refunded Bonds have been treated as extinguished debts as explained in Note 7 The principal and interest requirements of the Refunded Bonds are provided for by the escrow funds, however, if for any reason, the funds held in escrow are not sufficient to make payments on the Refunded Bonds, the holders of the bonds will have a claim on net revenues superior to the holders of the 1978 series bonds to the i extent required to make up the insufficiency.

The Revenue Bonds (Series 1978) are secured bya pledge of the net revenues-of the Commission. The Special Obligation Bonds (Series 1978A) are secured by a pledge of the interest to be paid on (the escrow funds.

Pursuant to the resolution under which the 1978 bonds were Issued, the-Commission deposited monies into the Reserve Account. The Reserve Account is required to be at least equal to the maximum annual prin-

~

cIpal and Interest requirements on the Revenue Bonds (Series 1978).

The Interest earned on the reserve account may not exceed the yield on the bonds, The Reserve Account is included in the Sinking Fund.

1 O~

O SEBRING UTILITIES COMMISSION NOTES TO THE FINANCIAL STATEMENTS September 30, 1978 Note 3 - Long-Term Debt (Continued)

The maturity schedule for the Revenue Bonds (Series 1978) is as follows:

Year Ending Principal Total Principal October 1 Amount inte rest and Interest 1979 $ 120,000.00 $ 576,073.33 $ 6 % ,073.33 1980 120,000.00 525,160.00 645,160.00 1981 130,000.00 518,560.00 648,560.00 1982 130,000.00 511,410.00 641,410.00 1983 140,000.00 504,260.00 644,260.00 1984 290,000.00 4 % ,560.00 786,560.00 1985 300,000.00 480,320.00 780,320.00 1986 310,000.00 563,220.00 773,220.00 1987 330,000.00 445,240.00 775,240.00 1988 350,000.00 425.770.00 775,770.00 .

1989 370,000.00 404,770.00 774,770.00 1990 390,000.00 382,200.00 772,200.00 (

1991 410,000.00 358,020.00 768,020.00 1992 430,000.00 332,190.00 762,190.00 1993 460,000.00 305,100.00 765,100.00 1994 490,000.00 275,660.00 765,660.00 1995 520,000.00 243,810.00 763,810.00 1996 550,000.00 209,490.00 759,490.00 1997 580,000.00 173,190.00 753,190.00 1998 620,000.00 134,330.00 754,330.00 i 1999 660,000.00 92,480.00 752,480.00 2000 700,000.00 47,600.00 747,600.00 TOTAL $ 8,400,000.00 $ 7,905,413.33 $16,305,413.33 The resolution provided that, initially on Issuance of the Revenue Bonds (Series 1978),$100,000.00 be deposited to the Renewal and Replacement Fund, and thereaf ter the Commission deposit monthly one-twelf th the ,

required amount into that account. The amount required to be deposited '

is 5% of the gross plant investment excluding investment in electric generating and transmission facilities ($386,363.05 for fiscal 1979). i The amount of $10,000.00 is required to be deposited monthly into an Emergencv and Facilities Account for sixty months beginning October, 1978, plus beginning in fiscal 1980, one-twelfth of two hundred per- :

centum of any increase in the amount required to be deposited in the Renewal and Replacement Fund.

! The adjusted composite yield on the Revenue Bonds (Series 1978) Is

6.79%, considering the discount on the bonds.

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9

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() SEBRING UTILITIES COMMISSION ,

NOTES TO THE FINANCIAL STATEMENTS September 30, 1978 l 1

Note 4 - Employee Pension Plan .

The Commission has a pension plan covering the majority of its employees. Pension expense amounted to $66,488.75 and $70,189.00 In 1978 and 1977, respectively, including amortization of prior i service costs over forty years. At September 30, 1978, the value .

of the pension fund was in excess of the actuarially computed value

' of vested benefits. Unfunded prior service cost was approximately

$343,000. at September 30, 1977 Note 5 - Allens of Florida Recovery During the years ended September 30, 1974 and 1975, the Commission !

expended approximately $30,000 to repair water lines which had been damaged by Allens of Florida. The cost of the repairs was recorded as a receivable, and a claim was asserted against Allens of Florida. During the year ended September 30, 1975, the $30,000 receivable was written-off as uncollectible and was charged to other deductions. During fiscal 1977, the claim was settled for

$18,721.33, less legal fees.,

Note 6 - Gas Supplier Recovery The Commission, together with seven other municipal utilities, asserted a joint claim against Florida Gas Transmission Company and Amoco Production Company for damages resulting f rom breach of agreements to supply natural gas. The damages were incurred I

during several prior fiscal years. The parties settled their i j dispute July 12,1977. The commission received $90,952.00 in i l November,1977, representing its share of an initial cash settle- !

ment, net of legal fees and estimated future administrative ,

expenses. The Commission's share of the balance payable under the l settlement agreements amounts to approximately $766,000 to be paid In cash or gas equivalents (measured at 72.82 cents per mmbtu) ,

over a four year period beginning In 1978. l l

The $90,952 received in November was reported in electric revenues and in receivables as of September 30, 1977 The balance will be j recognized as income during the fiscal years in which it is real-Ized.

Note 7 - Extraordinary item 4

In connection with the September 1978 advance refunding of bonds as described in Note 3, a gain was recognized in accordance with generally accepted accounting principles. The escrow account des- i cribed in Note 3 is sufficient in amount so that operating revenues ushould not be needed to meet debt service requirements on the Refunded Bonds. Accordingly, the transaction has been recognized as a completed refinancing.

9 w % - - - -

()

SUPPLEMENTARY FINANCIAL INFORMATION Our examination has been made primarily for the purpose of for-mulating an opinion on the basic financial statements, taken as a whole, '

and the other data included in this report, although not considered nec- i essary for a fair presentation of the financial position, results of op-erations, and changes In financial position in conformity with generally accepted accounting principles, are presented for supplementary analysis [

purposes. l The additional Information in the following pages has been sub-Jected to the audit procedures applied in the examination of the basic

' financial statements and is in our opinion fairly stated in all material ,

respects in relation to the basic financial statements taken as a whole.

Respectfully submitted,

/ Q V o<l . 2 Certified Public Accountants Sebring, Florida December 22, 1978 .

e

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- _ _ = _ . __-__ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

I i

l SEBRING UTILITIES COMMISSION j Q

i

! COST OF ELECTRIC PLANT OPERATIONS AND MAINTENANCE - STEAM Pl. ANT I

Years Ended September 30, 1978 and 1977 Year Ended 9/30/78 Year Ended 9/30/77 !

Description Amount KWH Sold Amount KWH Sold 35.683.260 !

KWH generated 40.879.230 KWH sold and used 35.088.116 11.234.807 t

Operating supervision and '

engineering $ 16,683.52 $.00048 $ 16,161.28 $.00052 Fuel and lubricating oil 676,204.35 .01927 693,821.04 .02221 ,

Other operating expense 165,585.41 .00472 136, % 8.21 .00439 '

Maintenance supervision and ,

engineering 13,008.03 .00037 3,504.37 .00011 Maintenance of structures 1,842.29 .00005 3,946.61 .00013 Maintenance of grounds 1,960.51 .00006 1,374.07 .00004 Maintenance of generating and ;

electrical equipment 51,719.36 .00147 61,610.12 .00197-Depreciat ion 68,138.40 .00194 67,865.99 .00217 Overhead applied 1,769.69 .00005 919.10 .00003j FICA, pension and group ,

insurance 30.822.20 .00088 25.275.93 .00081 ,

Totals $1.027.733.76 $m $1.011.446.72 $.d323R Percent to Percent KWH G ross to Net KWH generated 40,879,230 100.00% 1'08.20%' .

Less: Station power 3.097.260 7.58 8.20 Net Kilowatt hours 37,781,970 92.42 100.00 Less: KWH sold and consnission usage 35.088.116 85.83 92.87 j Indicated line losses 2.693.854 6.59% 7.13% !

y

SEBRING UTILITIES COMMISSION

()

COST OF ELECTRIC PLANT OPERATIONS AND MAINTENANCE - DIESEL PLANT Years Ended September 30, 1978 and 1977 Year Ended 9-30-78 Year Ended 9-30-77 Description Amount KWH Sold Amount KWH Sold KWH generated M 8.745.000 KWH sold and used 4.467.892 7.642.176 Operating supervision and engineering $ 21,962.38 $.00492 $ 21,650.65 $.00283 Fuel and lubricating oil 160,333.01 .03589 235,036.95 .03076 t Other operating expense 58,187.60 .01302 59,033.43 .00772

.00004 Maintenance of structu res 27.77 .00001 289.36 Maintenance of generating m d electrical equipment 35,805.65 .00801 39,843.34 .00521 ;

Depreciation 35,464.89 .00793 38,826.80 .00508 Overhead applied 810.61 .00018 439.32 .00006 ,

I flCA, pension and group ,

insurance 14,117.37 .00316 12,081.63 .00158 ,

Totals $M $.07312 $407.201.48 $M l

Pe rcent ' Percent KWH- to Gross to Net 5,507,900 KWH generated 100.00% 114.49%

Les s :', Station power 696.990 12.65 14.49 Net kilowatt hours 4,810,910.

87 35 100.00 Less: KWH sold and commission usage 4,467,892 81.12 92.87 Indicated line losses 343.018 6.23% 7 13%

1 !

('

SEBRING UTILITIES COMMISSI ON

()

COST OF ELECTRIC PLANT OPERATIONS AND MAINTENANCE - NUCLEAR PLANT Years Ended September 30, 1978 and 1977 Year Ended 9-30-78 Year Ended 9-30-77 Description Amount KWH Sold Amount KWH Sold KWH generated 12.152.821 11.904.324 KWH sold and used 10.724.725 10.464.141 Operating supervision and engineering $ 8,383.44 $.00078 $ 2,665.64, $.00025 Fuel and lubricating oil 29,741.61 .00277 30,105.91 .00288 Other operating expense 101,182.99 .00943' 57,891.54 .00554 Maintenance supervision and engineering 5,287.68 .00049 1,261.79 .00012 Maintenance of structures 2,718.94 .00025 350.41 .00003 Maintenance of generating and electrical equipment 23,749.92 .00221 5,253.30 .00050 ,

Depreciation 78,145.27 .00729- 34,081.06 .00326 t

Overhead applied 13,337.17 .00125 5,791.74 .00055 Totals $262.547.02 $.02447 $137.401.39 $.01313 ,

Percent Percent

KWH To Gross To Net KWH generated 12,152,821 100.00% 105.z4%

. Less: Station power 604,716 4.98 ~5.24 Net kilowatt hours - 11,548,105 95.02 100.00 Less: KWH sold and commission usage 10,724,725 88.25 92.87 ,

Indicated line losses 823.380 6.77% 7.13%

I SEBRING UTILITIES COMMISSION

g. ,

COST OF El.ECTRIC PLANT OPERATIONS AND MAI NTENANCE - PURCHASED POWER Years Ended September 30, 1978 and 1977 Year Ended 9-30-78 Year Ended 9-30-77 Description Amount KWH Sold Amount KWH Sold KWH purchased 47.590.832 44.083.314 KWH sold and used 44.197.606 41.107.006 1

Fuel and lubricating oil $1,181,830.58 $.02674 $ 915,573.61 $.02227 Other operating expense 147,892.04 .00335 154,115.78 .00375 Totals $1.329.722.62 $.0 3009 $1.069.689.39 $.02602 l Percent Percent KWH To Gross To Net

KWH purchased $47,590,832 100.00% 100.00%

Less: Station power - -

Net kilowatt hours 47,590,832 100.00 100.00 Less: KWH sold and commiss Ion usage 44,197,606 92.87 92.87 Indicated line losses 3.393.226 7.13% 7.13%

e t

i

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/

/ C..)

p3 */ SEBRING UTILITIES COMMISSION

SUMMARY

OF PROPERTY, PLANT AND EOUIPMENT September 30, 1978 k Cost of Assets Balance Description 10-1-77 Additions Deductions Land $ 35,000.00 $ 178,430.65 $

Power plant - diesel 2,413,457.59 25,815.15 -

- steam 2,819,599.95 4,360.33 -

- nuclear 2,088,405.36 - 15,8 % .98 Electric transmission system 904,747.10 - --

Electric distribution system 3,413,521.07 628,490.14 21,673.14 water system 2,435,983 28 150,244.14 -

Equipment 468,884.73 65,642.72 33,514.50 l

Storage buildings 48,334.52 1,490.37 -

Work in progress 231,662.88 128,633.96 123,474.56

' Nuclear fuel assemblies 133,190.92 50,907.99 29,494.20 Totals $14.992.787.40 $ 1. 2 %.015.45 $224.053.38 t

)

kpP

i Accumulated Depreciation Ne t Book Bolence Ba lance Balance Value 9-30-78 10-1-77 Additions Deductions 9-30-78 9-30-78 3 213,430.65 $ -

$ 213,430.65 2,439,272.74 1,788,670.52 35,464.89 - 1,824,135.41 615,137.33 2,823,960.28 736,050.90 68,138.40 - 804,189.30 2,019,770.98 2,072,508.38 34,081.06 78,145 27 - 112,226.33 1,960,282.05 904,747.10 97,638.23 30,139.05 - 127,777.28 776,969.82 4,020,338.07 978,993.18 142,401.94 21,673.14 1,099,721.98 2,920,616.09 2,586,227.42 969,804.38 97,277.37 - 1,067,081.75 1,519,145.67 501,012.95 269,643.96 50,386.13 23,770.62 296,259.47 204,753.48 49,824.89 19,714.61 2.374.55 - 22,089.16 27,735.73 236,822.28 - - - - 236,822.28 154,604.71 - - - - 154,604.71

$16.002.749.47 $4.894.596.84 $504.327.60 $45.443.76 $5.353.480.68 $10.649.26S123 I

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