ML19309E148

Annual Financial Rept 1978

ML19309E148
Person / Time
Site:	Crystal River
Issue date:	04/15/1980
From:	SEMINOLE ELECTRIC COOPERATIVE, INC.
To:
Shared Package
ML19309E142	List: ML19309E140 ML19309E148 ML19309E151 ML19309E155 ML19309E160 ML19309E165 ML19309E172 ML19309E174
References
NUDOCS 8004180469
Download: ML19309E148 (66)

Text

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mMmLE 1978 Annual Report l boopC A imonma-o l

up, opie Pulling

• Together"

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ON THEINSIDE

] A Cooperative Effort Brings Results says

i President Vern Eveland in his letter on Page 1.

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1978 Progress improves Our Prospects according to Executive Vice President Harry W.

Wright in the interview on Page 2.

1 Project Construction Set To Start this year on Seminole Unit 1 as described on Page 5 The Board of Trustees elected at the Annual Meeting are listed on Page 6.

7

.;.;.c ' t Seminole Registers Another Year of Progress

^ as detailed in this summary review of 1978.

s T Page 7.

1 E,

A Profile in Cooperation presents a brief description of Seminole, its member-owners, its ,

history and purpose on Page 10. l

\J Around the System provides a quick glimpse of member system activities last year. Page 12.

r. r Financial Statements and Notes for 1978 begin

{ on Page 13.

• - Information of General Interest appears on the inside back cover.

On the Cover g -- ~

" People pulhng together"is the message illustrated by this group of Seminole employees in a photograph outhned by the Cooperative's new logo. The l Seminole staff has been growing tomeet increasing demands of g

h operations and a massive power -

8 plant project.

To The Members: dependence on wholesale power possible cost." A major step toward The Annual Report this year from outside suppliers cannot achieving that objective will be highlights the theme of " people pulling continue.We also realize that every construction of the two 600-megawatt together.' This phrase expresses in effort must be made to bring spiraling generating units by 1935. We made simple terms the underlying principle costs of service under tighter control. great strides again in 1978. We are of the cooperative program and the Finally, we recognize that by providing maintaining the tight schedule aimed Seminole organization. Allof us are our own generation we are helping not at breaking ground for the first unit by united in the belief that people can only our own members, but all the end of:his year. Such success band togetherto promote their Floridians. It is obvious that all State does not occur by accident. In these collective welfare. utilities - private, municipal and difficult times, power plant projects Each of our member's systems cooperative - must contribute to face innumerable obstacles, any one demonstratein their own right the energy solutions as much as possible. of which can-and often does-success of the cooperative idea in The burden of financing cannot be bring delays and even postpone-Florida. Since the founding of the handled by one segment alone. ments. Regulatory complications, first cooperative in 1937, they have When ruralFlorida had only !egal entanglements, intervention provided ever-increasing numbers of scattered and inadequate electric and shifting energy policies pose people with economicaland reliable service, we met the challenge of senous threats to the best plans and electric service. About one million bringing ample and reliable power to most diligent efforts. Our progress so people around the State now depend almost everyone. In this tradition, we faris a tribute to the quality and I

on cooperative electric power. During have regrouped. The activiation of performance of the Seminole manage-the past four decades, rural Florida Seminole represents our determination ment and staff and the support has been almost totally electrified. to controlour energy destiny We now they received from the member But, with the recent energy crunch, can demonstate the compelling cooperatives. It also can be attributed I

we face new problems and power of a coordinated effort by to our having established responsible challenges. Concerns about our future people helping themselves. positions on social, environmental electric supply, skyrocketing energy I said in the Annual Reportlast year and public issues. But, there remains costs, and rapid system growth have that Seminole's objective is "to provide another factor which seems most become immediate and severe. our member-owners with adequate, predominant. Every trustee on our We know that our almost total reliable electric energy at the lowest Board has recognized the absolute necessity of beginning to provide our own source of electricity. We know this ThC PRESIDENT REPORTS venture is crucial to our existence. The A f project will test our determination, ability and persistence in attempting to assure the energy supplies of all We must cont nue to move resolutely and rapidlyin our mutual

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pursuit of building self-reliance.

W . We can look back on a year of great success. But it is more in the Seminole

,. u i ~, 1 j ] ,[7  % spirit tolook ahead. The coming year

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7 will take measure of our organization

' k i and Board.The strength of the

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.W f- cooperative concept can again be l ,MW demonstrated by making this project a p, w u %g' d reality We should never forget that ,

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. people pu!!ing together can create a ggy powerful force.

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Vern G. Eveland President ,

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In this interview, Executive Vice preventive action. If problems occur, environmentaland socialvalues we President and General Manager 11arry we act immediately to settle them. will stay on course with this vitally W. Wright expresses satisfaction with We are keeping our schedule for needed power plant to serve our Seminole's overall success the past contracts on equipment, fuel supplies member cooperatives.

year. He also cautions that we are and services. These considerations What other efforts stand out as entering the most cntical period for encourage optimism, but these are particularly significant?

organizational development and complex and unpredictable times. In a complex project of this l

project progress. I am cautiously confident. But, our magnitude, of course, every success How would you assess progress progress has mainly bolstered my -even small ones-is important.

on the Seminole project to date? determination to intensify our efforts lo that respect,I consider progress

( Regulatory and licensing approval and press even harder toward the on the many plant-related contracts for a major power plant has to be goalof starting construction by the encouraging. But, our signings of considered an uncertain prospect at end of the year. contracts for turbine generators, best. But, by any reasonable measure, What do you consider the major steam boilers, project labor, and coal our prospects have improved with accomplishment of the past year? supplies are particularly significant.

each passing month. We have In addition to those already Are you satisfied about the current successfully met State zoning and mentioned, I believe that continued state of the Seminole organization?

land use requirements, receiving the backing of our efforts and objectives I have been very pleased about final and unanimous approval from the by the Board and the public have Seminole's overall development. We Governor and his Cabinet this past been the m.:st gratifying. This support have continued to build a productive March. We are continuing to fulfill ultimately will determine the project's staff with a ccmmitment to getting regulatory demands related to the Site success or failure. I like to think that results. We still operate under a Certification Hearings schedu!ed for our organizationaland operating management by objectives approach:

June. We are working closely with approach has been responsible for setting precise objectives and Federal, State and local government gaining and maintaining this support. deadlines, then regularly measuring agencies to assure compliance with I certainly believe that if you do things success or failure. This system, every procedural, environmental and right you establish your own c edibuy I believe, accounts for the activist documentary rule. We try to anticipate and respect. If we continue to shuw nature of our organization and the potential problems and take concern for broad public, achievement orientation of our employees. We have been adding VIEWS FROM THE GENERAL MANAGER employees with similar quaidies in a carefully planned manner as 98 necessary to meet operating and project needs.

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,, August -one month ahead of schedule. Then, in November, we People Pulling h ;' e ,

O N?d submitted another application with the Together l ,

C EPA for a permit covering discharge of ahnhsaMs d j p. .Q plant waste water. By the way, our staff j 4 .j has been commended several times a We se Wli@ Wether to C assure themselves of reliable and

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thoroughness of our applications.

mutual effort led to the formation of a e Anotherimportant achievement was jo n!!y owned generation and gq '

.d the agreement we obtained from EPA transrnissica cooperative called yg and REA to hold public hearings p*Q%

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Seminole Electric.

And at Seminole, the staff also must

' ull together to make these power Did the past year bring any supplies available. The belief that A . ~ . ,

new problems? people can get things done if they

% Perhaps the shutdown of Crystal work together explains the basic

[g, River 3, and resulting cost increases cooperative concept. It also provides b m __. u m a for our members, was the leading problem. This breakdown interfered a theme for this report on Seminole's recent past and current prospects.

Have our dealings with regulatory with efforts to hold down member ,

agencies been satisfactory? wholesale power costs. On the other hand, we settled two rate cases for Regulatory relationships always are difficult. For one thing, the regulations a total of $5.6 million less than the in general are extremely complex, utilities requested. Member refunds of numerous and fluctuating In addition, over $1.5 million already have been --

the number of agencies involved is made from the first case and refunds great -literally dozens in o>ir case are still due for the second.

alone. The process at times appears What future matters are uppermost almost overwhelming. Nevertheless, in your mind?

we have established good rapport We have three extremely cntical and with the regulatory bodies affecting inter.related tasks ahead of us in the the project. I think they have come to next few months. We must get the believe that Seminole intends to meet Semino!e project certified. We must both the letter and the spint of the have our financing approved and rules. Where disagreements have arranged. And we have to start plant . 3 f -

arisen, we have settled them as much construction. And, that requires ,3m as possible in the best interests of continued and method: cal building of =

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all parties. Without question, the a high quality staff to meet the regulatory process is over- demanding tasks ahead We have complicated, often contradictory kept the project on track until now.

Even the agencies themselves if we remain alert and mutually recognize the problems and normally supportive, we will be successful.

l make good-fa;th efforts to be fair l and reasonable.

( What were some notable regulatory events last year?

I already discussed the situation with land use and site certification.

l We also submitted in May a permit l

application for air quahty and pollution g-l control systems with the EPA (Environmental Protection Agency)

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We also filed the final environmental assessment with the DER (Departmentof Environmental Regulation) and the REA (Rural Electnfication Administration)in.

3

i Construction WorkIncre::ses l During 1978, Seminole began making significant expenditures for environmental anal/ses of the a!!emative sites for its proposed generating plants. In addition, several transmission line projects were initiated j to meet future power requirements of our members.

These expenditures accounted for the significant increase in construction work in progress during the year.

Despite the serious mechanical failure at the Crystal River 3 plant, causing the unit to be off-line in 1978 for nearly six months, Seminole ended last year with net operating margins of $53,270. Total equities increased to

$157,768 as of December 31, Summary of Financial Highlights 1978 1977

, Operating Revenues $ 6,003,560 $ 3,125,169 j Operating Expenses 5,201,513 2,416,234

Interest Expense 748,777 650,979 Net Operating Margins 53,270 57,956 Net Plant 13,514,968 9,188,570

Construction Work

! in Progress 5,161,799 854,538 Total Assets 14,994,071 11,591,570 Total Equities 157,368 89,378 i

a a FunanClalReview Seminole transmission line pmmew* ~~- + =

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Ir e plant ed Seminole E iet.inc smoke particles tiue gas 'scrut;t >ers' to E vronmenta Regulation the U S tgrr eratang staton ,ndudes two remove suiphur omle' a tall 675 tc ot f nvironmenta: Protection Agency the fiOO megawatt un.ts L maust:ve stud es sLtck to disperse en'ss4ons into the Rural E ectntit ition Administration the Gf ; >utent,al ptant k x:atior is narroAed the upper atmosphere and o Ohng towers L J S Arms Corps ut E nqineers and Choe , to tour - A th one t;eing to ehminate warm Aater d sc harges ses,er a's .ther f edera' and State ehn A ta'ed later or, ensaanmental C< >nstruction on Unit 1 is scheduled tr agenm- T he imot Am meet grour u b Ihe f na sehton u ai site .n i t egin in Nowmber of 19 79 and tc , he au o+ t* e latest and enost stnngent Putr um D,unty A as t;ased on further c onipieted n 1983 The set und un.; As, e"vronmentai requiations at the ret,4 s er h :ntt , al ar, R nd suitatAt y of it e tolkJA the test tr/t wo years Alth f erlera' tnd State hels ren u r nt x; agert utses li i' sit jated a >n,niercu' oper ition set f( >r 1985 At in ;ng t' 4 > St J9 ;r: , R"ser at(>ut si- that fin e the o >mbined output of 12 nie ' u irtn < st Pci.h a near b;stAo mean k,k 3 Aatts would o e"t at;< k /

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1 OFFICERS l Vern G. Eveland, President; Star Rt., Box 280, Eustis, FL Peace River Electric Cooperative,Inc. l

! 32726 Richard L. Maenpaa; Wauchula, FL l Juhan L. Folsom, Vice-President; PO. Box 8 Chiefland, FL A. L Carman; Indian Lake Estates, FL j 32626 (Alternate) Robert Hamson; Arcadia, FL Leon E. Weaver, Sec]Treas; PO. Box 901, Quincy, FL 32351 Sumter Electric Cooperative,Inc. l l

l John J. Sisler; Leesburg, FL l

TRUSTEES V. G. Eveland; Eustis, FL Central Florida Electric Cooperative,Inc. (Alternate) Rufus Pace; Tavares, FL Julian L. Folsom; Chiefland, FL Suwannee Valley Electric Cooperative,Inc.

Joseph Sabel, Yankeetown, FL i

Arnold E. Smith; Live Oak, FL

(Alternate) H. E. Mills

Chiefland, FL C. F Hart; Mayo, FL l Clay Electric Cooperative,Inc. (Alternate) A, L. Ward; McAlpin, FL E. I Martin; Keystone Heights, FL Talquin Electric Cooperative,Inc.

l Zedra W. Hamilton; Brooker, FL Leon E. Weaver; Quincy, FL j (Alternate) Dick Surrency; Hawthorne, FL P W. Shelfer; Havana, FL Glades Electric Cooperative,Inc. (Alternate) Adrian C. Fletcher; Greensboro, FL A. C. Houston; Moore Haven, FL Tri-County Electric Cooperative,Inc.

O.N. Sykes; Moore Haven, FL M. C. Burnett; Greenville, FL (Alternate) Rodney Durrance; Lake Placid, FL.*

Ralph Williams; Madison, FL Lee County Electric Cooperative,Inc. (Alternate) Mack D. Sessions; Perry, FL James D. Sherfey; N Ft. Myers, FL Withiacoochee River Electric Cooperative,Inc.

Fred H. Smith; Marco Island, FL Billy E. Brown; Dade City FL (Alternate) Jeannette C. Hayford, Captiva, FL Don Porter: Zephyrhills, FL Okefenoke Rural Electric Membership Corporation (Alternate) Richard Strickland; inverness, FL Pete J. Gibson: Waynesville, GA J. D Burnsed G!en St. Mary, FL

• replaces D. D. Cunningham of Lake Placid  !

( Alternate) Frank E. Kearns; Callahan, FL who died this March (1979) after more than two years of Board Service SEMINOLE ELECTRIC COOPERATIVE, INC.

Board of Trustees President Vern Eveland addresses me-w "

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The Organization Devalopa Plant Project Shows Progress Ji'

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Mary Ann Fast, Secretary to the

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1 pollution control systems as required Another major regulatory event negotiations, the increase was by the U.S. Environmental Protection began last October with the State trimmed from the initial request of over

l Agency (EPA). In August, a month Hearings on land use and zoning. $6.1 million, or over 13 percent to less ahead of schedule, the Cooperative The purpose was to determineif the than $3 million, or 6.8 percent (based submitted its formal Environmental location of the Seminole plant and all on the 1978 test year). The refunds are i Analysis for site certification to the associated transmission line corridors pending until the settlement receives Flonda Department of Environmental complied with localland use and Federal Energy Regulatory Regulation (DER) and the Rural zoning ordinances for each county Commission approval. In the previous Electnfication Administration (REA). and city involved. An agency's case, Florida Power Corporation This report represented a year-long procedural error caused this hearing to (FPC) settled for an increase * $2.5 effort to assess all ecological, be continued until some outstanding million below its original request, as hydrological, geological, environmental, issues were resolved. The hearings calculated on a annual basis. Refunds demographic and socio-economic were finally closed in December of over $1.5 million were shared by aspects of the plant. The results, without reconvening. Finally, this members on a pro-rated basis.

contained in four large volumes, will March, the Governor and his Cabinet be the focus of the Site Certif: cation unanimously approved the findings Transmission Work Hearing scheduled to begin on June of the Hearings Officer that these Approval by REA of nearly $4

4. This hearing essentially will be the facilities were in compliance. million in lo ns covering nine projects )

final State regulatory step before the The last major application, the one allowed Seminole to proceed with site can be approved for plant concerning discharge of plant water important new transmission line construction by the Governor and his construction in member temtory. The ,

effluents (for the National Pollution '

Cabinet. The REA must prepare a final Discharge Elimination System Permit), projects, which are in various stages environrnental impa'ct statement for was filed with the EPA in November. of planning or construction, will approvals frcm the various Federal continue until mid-year. Seminole also agencies. Both the REA and EPA have Rate Cases Bring Member Refund has applied to the Department of agreed to hold public hearings Refunds to member cooperatives Energy for a grant to assist in simultaneously with the DER on resulted from two rate cases pursued rennovation of a hydro-electric plant at June 4. by Seminole. The latest settlement Talquin Dam. A feasibility study by the involved rate increases imposed by Cooperative's staff and consultant Florida Power and Light (FP&L)in proved favorable for this project. The March of 1978. After extensive

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proposed waterintake, a  :

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facility, located at Jackson Bluffs, had J Int Actlan Mirka Other1978 municipal and cooperative. It also f

been turned over to the State by Efforts introduced in 1978 a power brokerage Florida Power Corporation several Seminole joined with five other system, which allows more years ago. utilities in a feasibility study for a economical power sales and coal-slurry pipeline. The study proved purchases among utilities. It already Crystal River Plant Shutdown favorable to a proposal by Florida Gas has saved Florida consumers millions

( A six-month shutdown of the CR-3 Company and Bechtel Engineering to of dollars in energy costs. Seminole plant caused a temporary jump in bring coal from Illinois and Kentucky was involved in numerous FCG member power costs during 1978. into Florida. Seminole has contracts activities, programs and committees l

The 825-megawatt nuclear unit for coalfrom MAPCO mines in these throughout 1978. One major effort returned to commercial service in late areas. Another consortium led by was development of an Energy September. It had been down since Fluor Pioneer and Dames & Moore Conservation Plan. It was submitted to March, about a year after its initial also has undertaken a study for a the Governor as the first in the nation start-up in 1977, for repairs of damage similar pipeline project. The Board to be completed under new Federal caused by a malfunction. This plant approved a resolution early this year requirements.

was again taken out of service in Apnl expressing interest 'n being a user of 1979 for routine refueling requiring and, possibly, an equity owner in about six weeks. these projects.

Negotiations for part ownership of Seminole also has extensive another nuclear facility continued in involvement with other utilities through 1978 and early this year. Seminole has a unique and nationally recognized been trying to reach an agreement organization - the Florida Electric with FP&L for a six percent share Power Coordinating Group (FCG).

of the St. Lucie ll Plant now under This association promotes coordinated, construction. The Cooperative also central, statewide action and has been negotiating with FPC on information exchanges among all generation support services to back Florida utilities - investor-owned, up the Seminole units. A similar agreement already exists for CR-3 and would be needed for St. Lucie ll.

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Project brought a 69 kVline to this stubstation at Duette in Peace '

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1. TALOUIN ELECTRIC COOPERATIVE

2. TRI-COUNTY ELECTRIC COOPERATIVE 34 ,

3. SUWANNEE VALLEY ELECTRIC COOPERATIVE Sumterville. FL10

4. OKEFENOKE ELECTRIC COOPERATIVE '

5. CLAY ELECTRIC COOPERATIVE

6. GLADES ELECTRIC COOPERATIVE Dade City FL 9'

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7. LEE COUNTY ELECTRIC COOPERATIVE , s_

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9. WITHLACOOCHEE PlVEP RECTRIC COOPERATIVE

10. SUMTER ELECTRIC COO &RATIVE emuuss p "

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11. CENTRAL FLORIDA ELECTRIC COOPERATIVE Wauchula, FL 8 -

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12. SEMINOLE ELECTRIC COOPERATIVE eresso

13. SEMINOLE PLANT SITE h #

14. CRYSTAL RIVER PLANT E Shaded area shows counties woth member Isas/ Y?

consumers.notservceareas 7 7 THE SEMINOLE STOR(

A Profi ein Cooperation Seminole Electnc Cooperative and negotiation helped them achieve more the member's electrical needs. This its 11 member-owners provide reasonable rates. study demonstrated both feasibility concretetestimonytothe powerof By late 1973, however, rapidly rising and considerable cost savings for cooperation. Each cooperative that energy costs and uncertainties about members. After additional research created Seminole in 1948 consists of future supply caused the cooperatives into all practical alternatives, the members who are not just energy to reconsider Seminole's purpose. decision was made to construct two consumers. They are people joined They then established contracts 600-megawatt, coal-fired units at a site tcgether to provide themselves with designating Seminole as their power near Palatka.

essential electric service. They also supplier. At present, Seminole has When both units are operating in are the ultimate owner and governing almost no self generation. It owns 1985, Seminole will be providing its bodyof theCooperative.They about 14 megawatts of the output from members with about half of their 4 annually elect their Board of Trustees a plant operated by a private utility it projected requirements. By that time, to carry out the Cooperative's policy alsoisnegotiating forabouta efforts will be underway to meet  :

administraton.The Board,intum, 50-megawatt ownership in another additionalenergyneedsof the elects officers and appoints a plant. And, the Cooperative has system.

manager to run the operation. applied with the U.S. Department of Seminole's member cooperatives )

In similar fashion, these Energy for renovating a hydroelectric represent a combined totalof nearly cooperatives own and govem plant at Jackson Bluffs. 300,000 member households. Almost Seminole.They formed Seminole Currently, Seminole buys about 99% one million people in 47 counties initially to handle rate negotiations for ofits power through wholesale throughout Florida depend on l power purchased by members from purchases. For this reason, the cooperative power.They recognize  !

other utility companies. Collective Cooperative performed a that strength lies in their cooperation comprehensive studyinto the and their Seminole connection.

feasibility of supplying a larger part of 10 T Y D

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Seminole Member Cooperatives and Managers T;lquin Electric Clay Electric Withlacoochee River Cooperative,Inc. Cooperative,Inc. Electric Cooperative,Inc.

Quincy, Florida Keystone Heights, Florida Dade City, Florida Leon F Weaver E.I Martin Billy E. Brown Tri-County Electric Glades Electric Sumter Electric Cooperative,Inc. Cooperative,Inc. Cooperative,Inc.

Madison, Florida Moore Haven, Florida Sumterville, Florida M. C. Burnett A. C. Houston John J. Sisler Suwannee Valley Lee County Electric Central Florida Electric Cooperative,Inc. Cooperative,Inc. Electric Cooperative,Inc.

Live Oak, Florida North Fort Myers, Florida Chiefland, Florida Arnold E. Smith James D. Sherfey Julian L. Folsom Okefenoke Rural Peace River Electric Electric Membership Corporation Cooperative,Inc.

Nahunta, Georgia Wauchula, Florida Pete J. Gibson Richard L Maenpaa Member Systems Register Growth

! Every cooperative in the Seminole system registered significant growth in the number of consumers and the miles of lines added to serve their members. The combined increase in the members amounted to almost 20,000, or over seven percent,and about 400 miles in additional distribution lines. Almost 300,000 member families now depend on these cooperatives for their electric service.

Selected Statistics of Member Systems (As of December 31)

Poeco 1978 Centrol Clay Glades Lee Okefonoke River Sumter Suwannes Telquin Tri County W1tNechoochee Total Fullisme Employees 78 327 55 277 70 72 145 50 135 75 293 1.577 Number of Consumers 12.084 60.590 7.542 55.082 12.703 11.006 34.562 9.260 23.337 8.844 53.745 288.755 increase o Customers 622 2.263 415 5.750 607 575 1.929 378 1.007 285 5.703 19.534 Total wes Energized 2.351 7.704 1 689 2.818 2.095 1.855 4.126 2.544 2.777 2.089 3.455 33.503 Number of Consumers Per Mde of Lme 5 8 4 20 6 6 8 4 8 4 16 9 Wes ot tre Added 83 155 40 148 70 31 126 50 (473) 42 121 393 Average MontNy Resdent a, Revenue 37 94 44 17 35 27 42 40 40 83 40 87 42 89 44 17 44 40 40 04 4211 42.47(t) l Average MontNy Rescent.a! KWH 624 889 714 958 928 743 772 845 874 644 748 833(1)

Total Equey as a % of Assets 25 9% 27 5% 31 5 % 35 8 % 24 7% 18 7 % 18 7 % 16 4 % 37.1% 19 0 % 15 1 % 25 2 %(1) 1977 l Full-7me Employees 79 319 51 281 69 69 154 49 122 65 273 1.531 l Numberof Consumers 11.462 58.327 7.127 49 132 12.096 10.431 32.633 8.882 22.330 8.559 48.042 269.221 increase m Customers 402 2.848 33 4.443 514 306 1.311 297 901 190 4.105 15.350 2.268 7.549 1.649 2.670 2.025 1.824 4.000 2.494 3 250 2.047 3.334 33.110 Total Wes Ene@ red Number of Consumers Per We of Lee 5 8 4 18 6 6 8 4 7 4 14 8 l l

l Wes of Lme Added 58 154 49 134 58 25 98 44 63 34 104 821 Average MontNy Resdential Revenue 35 39 40 13 3 13 38 79 39 15 36 54 39 50 41 62 39 58 34 64 38.88 38 91(1)

Average MontNv Resedential KWH 617 858 749 917 924 706 749 846 869 634 735 811(1)

Total Equity as a % of Assets 23 5% 271% 36 2 % 31 9 % 23 4% 17 5 % 17 0 % 17.5 % 37 2% 18 1 % 13 1 % 23.8%(1)

Source Annual F,nancial & Statisical Report (REA Form 7 and Ta) (1)Weeghted Mrege 1

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A last year for Clay Electric Cooperative, which is head-quartered in Keystone Heights northeast of Gainesville.

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The largest custori.sr of Sumter Electric Cooperative during the past year was the Dixie Lime and Stone Company in Sumterville.

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Aft:r SuwInnee Valley Electric Cooperative's1978 annual meeting, General Manager Arnold Smith (left)and President C. F. Hart (right) posed for a photograph with Seminole's Harry Wright,who I

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Electric Membership Corporation, f '{ j headquartered in Nahunta, Georgia.

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l 13

SEMINOLE ELECTRIC COOPERATIVE, INC.

Balance Sheets, December 31,1978 and 1977 ASSETS 1978 1977 Utility plant (Notes 2,3 and 6):

At originalcost $ 8,944,098 $ 8,615,875 Construction work in progress 5,161,799 854,538 14,105,897 9,470,413 Less accumulated depreciation (606,410) (298,253)

Acquisition adjustment, less amortization 15,481 16,410 Net plant 13,514,968 9,188,570 Nuclear fuel,less amortization 328,166 440,834 Nuclear fuelin process of refinement and enrichment 388,114 104,822 Utility plant, net 14,231,248 9,734,226 Investments in associated organizations, at cost 57,997 29,628 Current assets:

Cash 42,028 72,688 Refund receivable (Note 4) - 1,191,602 Accounts receivable 131,507 162,775 Accounts receivable, other 23,438 -

Accrued unbilled revenues 262,344 303,712 Prepayments 6,696 10,634 Totalcurrent assets 466,013 1,741,411 Deferred charges (Note 10) 238,813 86,305

$14,994,071 $11,591,570 EQUITY AND LIABILITIES 1978 1977 Equity (Note 5):

Memberships $ 1,200 $ 1,200 Patronage capital 218,131 164,861 Other margins and equities (deficits) (Note 13) (79,882) (94,602)

Donated capital 17,919 17,919 Totalequities 157,368 89,378 Long-term debt (Note 6):

Federal Financing Bank notes 8,931,000 8,931,000 Advances from members 248,800 248,800 REA note payable (including in 1978, $10,077 due within one year) 278,985 278,985 Totallong-term debt 9,458,785 9.458,785 Currentliabilities:

Short-term borrowings from associated organization (Note 7) 3,915,000 1,455,198 Accounts payable 1,169,481 500,165 Retained percentages payable 198,594 -

Taxes and interest accrued 79,856 48,164 Other current and accrued liabilities 14,987 39,880 Totalcurrent liabilities 5,377,918 2,043,407 Commitments and contingencies (Note 12)

See accompanying notes. ' ' '

14

Statemento of Operation 3 for the years ended December 31,1978 and 1977 1978 1977 Operating revenues and patronage capital (Note 2) $6,003,560 $3,125,169 Operating expenses:

Operation:

Fuel 113,287 187,654 Other production expenses (Note 8) 337,708 190,936 Purchased power 3,671,760 1,081,234 Transmission 369,536 284,571 Administrative and general 238,014 214,876 Maintenance 8,313 4,199 Depreciation and amortization (Note 2) 309,161 247,516 Taxes (Note 9) 150,730 99,385 Other(Nota 10) 3,004 105.863 5,201,513 2,416,234 Operating margins before interest charges 802,047 708,935 Interest charges:

Interest on long-term debt 743,631 746,072 Interest on debt to associated organization 198,458 41,012 Other 733 3,058 Less interest charged to construction (Note 2) (194,045) (139,163) 748,777 650,979 Net operating margins 53,270 57,956 Nonoperating margins:

Interest income 14,720 37,878 Net margins $ 67,990 $ 95,834 See accompanyng notes.

l Statements of Changes of Patronage Capitai and Other Margins and Equities (Deficits) for the years ended December 31,1978 and 1977 Other Margins and Patronage Equities Capital (Deficits) Total Balance, December 31,1976 $106.905 $(132,480) $(25,575)

Net margins,1977 57,956 37,878 95,834 Balance, December 31,1977 $164,861 $( 94,602) $ 70,259 Balance, December 31,1977, as previously reported $107,889 $( 97,514) $ 10,375 Adjustment (Note 13) 56,972 2,912 59,884 As restated, December 31,1977 164,861 ( 94,602) 70,259 Net margins,1978 53,270 14,720 67,990 Balance, December 31,1978 $218,131 $( 79,882) $138.249 See accompanying notes.

Etatements of Changes in Financial Position for the years ended December 31,1978 and 1977 1978 1977 Funds provided by:

Operations:

Net margins $ 67,990 $ 95,834 Add (deduct) items not affecting working capital:

Depreciation and amortization of plant 309,161 247,516 Amortization of nuclear fJel(Note 2) 112,668 187,654 Interest charged to construction (194,045) (139,163)

Total funds provided by operations 295,774 391,841 Advances from Federal Financing Bank - 205,000

$ 295,774 $ 596,841 Funds used for:

Property additions, net of interest charged to construction 4,568,544 923,464 Payments on long-term debt - 7,749 increase in investments 28,369 13,872 increase in deferred charges 308,770 -

Increase (decrease) in working capital (4,609,909) (348,244)

$ 295,774 $ 596,841 Other changes in working capital consist of:

Increase (decrease) in current assets:

Cash $ (30,660) $ (37,445)

Refund receivable (1,191,602) 1,191.455 Accounts receivable (7,830) 144,252 Accrued unbilled revenues (41,368) 239,722 Prepayments (3,938) 3.938 (1,275,398) 1,541,922 Decrease (increase) in current liabilities:

Short-term borrowings from associated organization (2,459,802) (1,390,042)

Accounts payable (867,910) (425,089)

Taxes and interest accrued (31,692) (45,553)

Other current and accrued liabilities 24,893 (29,482)

(3,334,511) (1,890,166)

Decrease in working capital $(4,609,909) $ (348,244)

See accompanying notes.

l l

l I

16

Notes to Financial Statements

1. The Cooperative:

Seminole Electric Cooperative, Inc. (Seminole) is a generation and transmission cocoerative. It is responsible for meeting the electric power and energy needs of its eleven (11) distribution cooperative members operating within the State of Florida.

At the present time, the only Seminole-owned resource for supplying its members' electric power and energy requirements is its 1.6994% undivided ownership interest in the Crystal River Unit #3 (CR3) nuclear power plant operated by Florida Power Corporation. The balance of its members' needs are supplied by wholesale purchases of electricity from other power suppliers.

In order to supply a larger share of its members' projected needs, Seminole is planning to construct two (2) new generating facilities (Seminole Unit 1 and Unit 2) with approximately 600 megawatts output per unit. As prescribed by Federal and state power plant licensing requirements, Seminole has completed an environmental assessment and filed for certification of a plant site near Palatka, Florida as a prerequisite to beginning construction on the project.

2. Summary of Significant Accounting Policies:

Seminole maintains its accounts in accordance with po!!cies prescribed or permitted by the Rural Electrification Administration (REA), which conform with generally accepted accounting principles in all material respects.

The more significant of these policies are as follows:

A) Utility Plant - Utility plant is stated at original cost. Such cost includes applicable supervisory and overhead cost, plus interest charged during construction (See Note 2-E).

The cost of maintenance and repairs, including renewals of minor items of property, is charged to operating expt 1se. The cost of replacement of depreciable property units, as distinguished from minor items, is charged to utility plant. The cost of units replaced or retired, including cost of removal, net of any salvage value, is charged to accumulated depreciation.

B) Operating Revenues and Patronage Capital -Seminole has wholesale power contracts with each of its members whereby the members must purchase all electric power and energy which the member shall require for its system within the State of Florida to the extent that Seminole shall have uch power and energy and facilities available; provided, however, that the member shall have the right to continue to purchase power under any existing contract with a supplier other than Seminole during the remainder of the terms of these existing contracts or until such time as Seminole requests these contracts be terminated. Payments received and disbursed by Seminole on behalf of its members under these existing contracts are not recognized either as a revenue or as a cost.

Operating revenues and patronage capital consist of billings for sales of electric powe.. hy Seminole to its members together with a member adjustment factor. Revenues and patronage capital are accrued monthly, to match costs incurred in generation at CR3 or billings received for purchased power.

C) Depreciation - Seminole provides for depreciation using the straightline method at annual rates which will amortize the original cost of depreciable property over its estimated useful service life. The rates for 1978 and 1977 were as follows:

1978 1977 Nuclear production plant 3.S % 3.6%

Treiismission plant 2.75 % 2.6%

Generalplant 12.2 % 12.3 %

The nuclear production plant rates include an estimated negative salvage value of 12% representing estimated cost of removal and disposal.

D) Amortization of Nuclear Fuel-The cost of nuclear fuelis amortized to fuel expense based on the quantity of heat produced for generation of electric energy in relation to the quantity of heat expected to be produced over the life of the nuclear fue! core.

Although there is no facility presently in operation to process spent nuclear fuel and it may be necessary to store spent nuclear fuel for an indefinite period, no provision has been made in these statements for these costs.

17 L

E) Capitalization of interest -In accordance with procedures permitted under the Uniform System of Accounts prescribed by the REA, a portion of interest on borrowed funds, at rates of approximately 9.8% and 8.17% for 1978 and 1977, respectively, is capitalized as a component of the cost of construction work in process, and is reflected as a reduction of interest expense.

3. Utility Plant:

The original cost of Utility Plant at December 31,1978 and 1977, was as fotbws:

1978 1977 Ownership (1.6994%) in nuclear plant $ 8,139,751 $8,190,179 Transmission plant 752,334 396,327 Generalplant 52,013 29,369 8,944,098 8,615,875 Construction workin progress 5.161,799 854,538

$14,105,897 $9,470,413 Construction work in progress at December 31,1978 consists mainly of engineering and site selection costs relevant to Seminole Unit 1 and engineering and construction costs on several transmission line projects. The amount at December 31,1977 consisted mainly of engineering costs relevant to Seminole Unit 1. Substantially all of the Utility Plant assets are pledged as collateral for the REA mortgage notes and CFC loans.

4. Refund Receivable:

At December 31,1977, this amount consists of a receivable from Florida Power Corporation representing a refund of certain amounts paid by Semino!e during 1977. The refund is primarily a result of a Federal Energy Regulatory Commission Order approving a wholesale rate agreement negotiated and agreed to by Florida Power Corporation and its wholesale power customers in June of 1977. The refund, including interest at 9% per annum, was paid to Seminole during 1978.

5. Return of Equity Restrictions:

Under provisions of the agreements relating to the REA mortgage notes, until the total of equities and margins equals or exceeds forty percent of total assets, the return by Seminole to members of capital contributed is limited generally to twenty-five percent of the patronage capital or margins received by Seminole in the next preced,ng year.

6. Long-Term Debt: ,

Federal Financing Bank notes payable are guaranteed by the REA and bear interest at rates ranging from 7.442% j to 8.215%. The notes are for a thirty-five year period, with the first principal payment due in 1983. Interest on the  ;

mortgage notes is payable quarterly and will approximate $734,000 for 1979 based upon debt outstanding at  :

December 31,1978. j Advances from members represent amounts advanced, unsecured, with no definite due date and without interest. I The REA note payable is due in 2008 and is payable in quarterly installments of approximately $4,400 including interest at 5%. These installments were not made by Seminole during 1978 due to delays in REA approvals. When these approvals are received, both the 1978 and 1979 installments will be due. This two-year amount is reflected in 1 the 1978 payments due within one year. Interest has been accrued.

In December 1978, Seminole received approval from the i stational Rural Utilities Cooperative Finance Corporation i of their application for a 60-million dollar Intermediate-Terrr Loan. This loan is for a period of five years and is to be used for initial expenditures on Seminole Units 1 and 2. As of February 28,1979, the loan had not been executed l

l 18

7. Short-Term Borrowings From Associated Organization:

The amount shown on the balance sheet at December 31,1978 represents amounts owed to the National Rural Utilities Cooperative Finance Corporation (CFC) under a total line of credit of $12,000,000. The interest rate is the prime rate, as defined, plus %% (11.75% at December 31,1978). The line of credit expires March 8,1979. On January 19,1979, prior to the expiration of this line of credit, Seminole secured a new line with the CFC for the same amount for an additional year commencing January,1979. The interest rate will be the prime rate, as defined, plus %%.

8. Other Production Expenses:

Other prcduction expenses consist of CR3 operating costs which represent Seminole's portion of all expenses incurred by Florida Power Corporation attributable to the operation of CR3 and property recordable in accordance with the operating expense instructions and in appropriate accounts as set forth in the Uniform System of Accounts. These payments are made to Florida Power Corporation in accordance with the Crystal River Unit #3 Participation Agreement.

9. Taxes:

Seminole files income tax retums with the Intemal Revenue Service as an organization exempt from Federal income taxes under applicable provisions of the Internal Revenue Code. Tax expense represents property, gross receipts and payroll taxes.

10. Write-Off of Deferred Charges:

During 1977, Seminole wrote off approximately $104,500, which represented an investment in an intervention proceeding entered into to secure participation in a proposed Flonda Power & Light Company nuclear power plant to be located in South Dade County, Florida. Florida Power & Light cancelled the proposed plant. Of the

$104,500 written off, approximately $86,000 was incurred and deferred prior to 1977.

At December 31,1978, deferred charges consist primarily of costs associated with securing a supply of coal for the planned Seminole generating units. Additional amounts consist of the costs incurred in negotiating possible joint ownership participation in a Florida Power & Ught Company nuclear unit presently under construction.

11. Retirement Plan:

Substantially all employees are covered by a pension plan which is funded through participation in a National Rural Electric Cooperative Association (NRECA) group plan. Pension costs were approximately $34,950 and

$11,450 for the years ended December 31,1978 and 1977, respectively

12. Commitments and Contingencies:

A) Construction -Seminole anticipates making expenditures of approximately $23.5 million for Seminole Unit 1 and 2 project related activities during 1979. The largest portion of these anticipated expenditures will not occur until the final authorization to begin construction has been received by Seminole from the appropriate authorities. (See Note t)

In addition, Seminole anticipates the expenditure of approximately $1.7 million during 1979 for transmission facilities to meet the needs of its member systems and serve to connect the proposed generating units to the Florida bulk power supply grid.

B) Capital Term Certificates -Seminole is obligated to purchase, in October 1979, Capital Term Certificates (CTC) of the National Rural Utilities Cooperative Finance Corporation in the amount of approximately $48,000.

Further, it is obligated to purchase, based on anticipated revenues, CTC's during the years 1980 through l 1984, as follows:

1980 -$60,000 1983-$ 80,000 1981 -$69,000 1984 -$974,000 1982 -$74,000 I It is anticipated that Seminole Unit 1, will be in operation for at least six months during 1983.

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13. Restatement of Prior Year's Financial Statements:

The financial statements at December 31,1977 and for the year then ended have been restated from amounts previously reported to reflect a correction of errors in billings from Florida Power Corporation regarding CR3 power and operating expenses for that year.

The effect of these changes are as follows:

As Previously As Reported Adjustment Restated Balance sheet:

Refund receivable $1,131,718 $59,884 $1,191,602 Patronage capital and other margins and equities (deficit) $ 10,375 $59,884 $ 70,259 Statement of operations:

Operating revenues and patronage capital $3,077,504 $47,665 $3,125,169 Operating expenses _$2,425,541 $(9,307) $2,416,234 Net operating margin $ 984 $56,972 $ 57,956 Interestincome $ 34,966 $ 2,912 $ 37,878 Net margins $ 35,950 $59,884 $ 95,834 Report ofIndependent Certified Public Accountants Board of Trusteet.,

Seminole Electric Cooperative, Inc.:

We have examined the balance sheets of Seminole Electric Cooperative, Inc. as of December 31,1978 and 1977, and the related statements of operations, changes of patronage capital and other margins and equities (deficits), and changes in financial position for the years then ended. Our examinatons were made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.

In our opinion, the financial statements referred to above present fairly the financial position of Seminole Electric Cooperative, Inc. as of December 31,1978 and 1977 and the results of its operations and the changes in its financial position for the years then ended, in conformity with generally accepted accounting principles applied on a consistent basis. The financial statements for 1977 have been restated as described in Note 13.

COOPERS & LYBRAND Certified Public Accountants l

Tampa, Florida February 28,1979 20

i l

Direct:rcf Acc untingand Seminsle Bo:rd cf Tru; tees l Settilriole'S Staff Directors Meetings Directorof Procurement-Joe Finance-PaulCurry has been with l

Seminole since 1976. He holds a B A. Seminole Board Meetings are Casey began with the Cooperativein l degree from the University of Florida normally scheduled on the second i 1978. He gained his experience with the U.S. Air Force, the State of and a B.S. degree from the University Wednesdayof themonth.The

( following schedule is tentative and Connecticut, and BechtelPower of South Florida.

Corporation, subject to Board vote.

. -j May 3,1979 Tallahassee

~1 June 20,1979 Jacksonville M July 11,1979 Tampa l August 8,1979 Tampa )

< September 12,1979 Tampa October 10,1979 Tampa

} ..

4 November 14,1979 Tampa 2 December 12,1979 Fort Myers January 9,1980 Tampa Directorof Public Affairs-Larry February 13,1980 Tampa Newellcame with Seminofe last year. March 12,1980 Tampa Directorof Engineering-Bob His 17 years of experience in pubhc April 9,1980 Tallahassee Claussen started with Seminole in information, communications and 1976. His 15-year career in electric Seminole Annual Meeting power engineenng includes corporate relabons include 13 years in the utihty industry The election of trustees and officers experience in utihty consulting and takes place at the Annual Meeting to with another Florida utility. be held in conjunction with the regular j Board Meeting on February 13,1980.

~] I Corporate Counsel l

lb ' '

L. Robert Frank, attorney at law,

[

• Allen Dell Frank & Trinkle, l

P.O. Box 2011, Tampa, Florida 33601 b

• Consulting Engineers Burns & Roe, Inc.,

M 5520 Los Santos Way, Jacksonville, Florida 32211 Project Director-Tom Crumbsh

• 9 *'

joined Seminolein 1977. He hm inlate August,Seminolelosta valuable staff member with the death Southern Engineering Company, 16-year background in c:,ostruction of Bill Rapp, Director of Procurement. 1000 Crescent Avenue, NE, management includhg eight years He joined Seminole in January of 1978. Atlanta, Georgia 30309 in utikty and power plant projects.

He was responsible for a number EnvironmentalConsultants of important contnbutions to Seminole Dames & More, Suite 200, and its purchasing operations 455 E. Paces Ferry Road, including help with negotiation of Atlanta, Georgia 30305 contract terms beneficial to all system Headquarters Offices members. He is survived by his wife Seminole Electric Cooperative, Inc.,

Delores, two sons and a daughter. 2410 E. Busch Boulevard, Tampa,

{ Florida 33612 (813)933-7406 l

l l

SEMINOLE ELECTRIC '

i COOPEAATIVE

INCORPORATED 1

2410 East Busch Boulevard Tampa, Florida 33612

" Cooperative Generation -

a new factor in Florida's electric energy supplies"

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PURVIS, GRAY AND COMPANY Auenecaw smorrruts os. CERTIFIED PUDLtC ACCOUNTANTS eassamans or

• "#8 POST OFf"lCC DOM 999 322 NORTHEAST lef STREET g , , , g, C.C.C. PnAcTecs secteowe TER.EPHONE 37e adel AREA CODE 804 Caerverno pumuc ACcoWMT ANTo GAINESVILLC. FLORfDA 32602 s

AUDITORS' REPORT llonorable City Commission City of Cainesville Gainesville, Florida

' We have examined the general purpose financial statements of the City of Cainesville, Florida, of contents. for the fiscal year ended September 30, 1979, as listed in the foregoing table Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and other auditing procedures as we considered necessary in the circumstances.

In our opinion, the financial statements referred to above present fairly the financial position es of September of the various funds end account groups of the City of Gainesville, Florida, 30, 1979, and the results of operations of such funds and, where appli-cabic, changes in financial position for the years then ended, in conformity with gener-ally accepted accounting principles applied on a basis consistent with that of the pre-coeding year after giving retroactive effect to the change, with which we concur, in the method of accounting for reserves and certain capital and operating grants as described in Note 2 to the financial statements.

The accompanying supplemental information as identified in the foregoing table of contents and the columns on the accompanying combined financial statements captioned " Total (Memorandum Only)" are not necessary for a fair presentation of the financial statements, but are presented as additional analytical data. The supplemental information has been subjected to the tests and other auditing procedures applied in the examination of the financial statements referred to above and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

l Jsnuary 2,1980 g

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__y 4 CITY OF CAINESVILLE, FLORIDA l

UTILITY FUNDS Utility funds are known as proprietary funds and are established to account for the

' financing of self-supporting activities of governmental units which render electric,

, water and sewer services on a user charge basis to the general public.

Budget comparisons are not shown in the following financial statements, because the principal exceptions to the use of budgetary accounting sanctioned by generally ac-cepted accounting principles include enterprise or utility funds where demands for service and management flexibility outweigh the advantages of traditional budget control.

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C0!!BINING BA1ANCE SilEET UTILITY FUNDS SEPTE!1lWR 30, 1979 ]

CITY OF GAINESVILLE, FI,0RIDA ASSETS ELECTRIC FUND CURRENT ASSETS $ 308,112 l Cash Accounts Receivable (Net of Allowance For U1 collectible 5,893,679 Accounts; $988,520 in 1979 and $562,179 in 1978) (See Note Below) 0 Other Receivables 49,474 Duc From Other Funds (See Note Below) 14,031 Prepaid Exper.acs 2,717,037 Fuel and Supplies Inventories 1,219,931 Settlements With Fuel Suppliers 10,202,264_

TOTAL CURRENT ASSETS f

RESTRICTED ASSETS 0 g Capital Facilities - Cash and Investments 136,247 $

Utility Deposits - Cash and Investments 18,854,799 Sinking Funds - Cash and Investments Construction Trust Funds: 39,909,689 Cash and Investments Utility Plant Improvement Fund:

Cash, Investments and Receivables (Including $48,302 85,157 l Duc From Other Funds) 950,649 P 11aterials Inventories 59,936,541 TOTAL RESTRICTED ASSETS UTILITY PIANT 115,086,952 Utility Plant In Service 3,742,755 Completed Plant Not Classified 118,829,707 (30,091.526)

Accumulated Provision For Depreciation and Amortization 88,738,181 Construction Work in Progress 68,931,623 [

157,669,804 L TOTAL UTILITY PLANT - Cost Less Depreciation and Amortization

(

OTilER ASSETS 86,119 [

Miscellaneous Deferred Debits 708,319 Unamortized Bond Discount 1,408,500 Settlements With Fuel Suppliers 2,202,938 TOTAL OTilER ASSETS

$230,011,547 TOTAL ASSETS NOTE - All customer receivables for electric, water and sewer charges are recorded in the Electric Utility Fund. Amounts billed for water and scwcr charges are re-corded as due from the Electric Fund in tifose respective funds. Allowances for uncollectible water and sewer charges are reficcted above as credit balances in accounts receivabic.

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(AS RESTATED) 1979 1978 TOTAL TOTAL WATER SEWER ALL ALL FUND FUND FUNDS FUNDS

~

$ 78,591 $ 88,400 475,103

$ $ 353,516

( 109,704) ( 70,846) 5,713,129 O

6,385,873 O O 14,854 413,731 555,021 1,018,226 887,408 1,320 1,240 16,591 49,512 0 0 2,717,037 2,356,467 0 0 1,219,931 0 383,938 573,815 11,160,017 10,047,63,0

. 1,700 422,547 424,247 325,840 0 0

' 136,247 1,236,721 1,928,405 1,068,708 21,851,912 18,644,015 0 0 39,909,689 41,368,138 24,338 13,013 1,163,394 122,508 39,649 60,300 2,174,343 3,117,837 1,564,568 1,945,542 64,618,946 63,559,905 39,346,006 34,104,725 6,859 188,537,683 179,262,201 17,193,488 20,943,102 39,352,865 20,824,340 51,298,213 209,480,785 (10,017,742) 200,086,541 (9,236,060) (49,345,328) (44,015,616) 29,335,123 42,062,153 903,265 160,135,457 156,070,925 1,101,436 70,936,324 30,238,388 43,163,589 36,508,490 231,071,781 192,579,415 33,301 190,542 309,962 591,122 0 0 708,319 384,377 0 0 33,301 1,408,500 2,817,000 190,542 2,426,781 3,792,499

$ 33,773,464 $45,492,514 $309,277,525 $269,979,449 (Continued).

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l COMBINING BALANCE SilEET UTILITY FUNDS  !

SEPTEMBER 30, 1979 CITY OF GAINESVILLE, FLORIDA (Concluded)

LIABILITIES, DEFERRED CREDITS, CONTRIBUTIONS AND RETAINED EARNINGS ELECTRIC FUND CURRENT LI ABILITIES '

Payable From Current Assets: $ 2,986,805 Accounts Payable 286,362 Accrued Liabilities 1,743,425 Due To Other Funds (See Note Below) 5,016,592 Payable From Restricted Assets: 1,254,904 3,484,049 Utility Deposits Accrued Interest Payable 0 ll[

Current Portion of Long-Term Debt Construction Trust Funds - Accounts, Contracts and Retainages 3,384,699 Payable Utility Plant Improvement Fund - Accounts Payable (Including ___

1G3,138

$12,990 Due To Other Funds) 8,306,790 '

13,323,382 TOTAL CURRENT LIABILITIES LONG-TERM LIABILITIES 120,425,170 Utilities System Revenue Bonds Payable Bond Anticipation Notes Payable 50,000,000 O

f Electric and Water Revenue Certificates Payable O Sewer Revenue Certificates Payable 0 Electric, Water and Sewer Revenue Bonds Payable 0 .

Deferred Contracts Payable To Developers 0 Subordinated Revenue Certificates Payabic _

_ 170,425,170 TOTAL LONG-TERM LIABILITIES 2,628,421 .

DEFERRED CREDITS 186,376,983 TOTAL LIABILITIES AND DEFERRED CREDITS CONTRIBUTIONS IN AID OF CONSTRUCTION 0 Utility Plant Contributed By Municipality 0 -

Federal Grants in Aid of Construction Contributions From Customers and Developers: 0 Plant Contributed By Developers 0 ,

Front Footage, Meter Installation and Other Connections Charges 0 Capital Facilities Charges 0 TOTAL CONTRIBUTIONS IN AID OF CONSTRUCTION -

RETAINED EARNINGS 15,370,750 Reserved For Debt Service 28,263,814 Unappropriated (Deficit) 43,634,564 TOTAL RETAINED EARNINGS (DEFICIT)

TOTAL LIABILITIES, DEFERRED CREDITS, CONTRIBUTIONS AND $230,011,547 g RETAINED EARNINGS r.

NOTE - All customer receivables for electric, water and sewe'r charges are recorded in the Electric Fund. Amounts billed for water and sewer charges are shown as due to those respective funds from the Electric Fund above. \

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ING 1;g (AS RESTATli

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[} 1979 TOTAL ALL 1978 TOTAL ALL SEWER f6?] -

WATER FUND FUND FUNDS FUNDS e

72,725 $ 3,144,646 $ 1,385,7:

$ 85,116 $

419,9:

324,101 mI 17,426 20,313 6,231 1,755,165 1,652,01

-3 . 5,509 3,457,7' 5,223,912 Ik ),,. '

103,051 99,269 3

3] 1 0 326,269 299,148 0 1,254,904 4,109,466 1,236,7 2,306,7

.3 I ] 0 0 0 3,023,0

.$)

0 3,384,699 1,664,3 0

18,058 395,346 225,1

$I ~

194,150 9,144,415 8,456,0 i# 520,419 317,206 14,368,327 11,913,7 7r

$ hf 628,470 416,475 15,429,305 14,145,525 150,000,000

(! 0 0 50',000,000 iQ 0 8,267,0 Mi }! l 0 0

0 0 0 1,310,0 0 0 168,765,0 f{ })I-l 0 0 0 0 1,2 0 0 178,6 0

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! 15,429,305 0

14,145,525 0

200,000,000 2,628,431 178,521,8 2,939,8 14,562,000 216,996,758 193,375,l-j j _16,057,775 0 3,974,496 3,974,496 3,974,l 4

' ] -

0 12,131,631 12,131,631 12,131,(

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~5l- 526,038 11,910,219 2,802,346 12,436,257 10,141,441 7,942,:

9,437,:

,  ! 7,339,095 1,575,348 2,637,471 1,866,:

'i 1,062,123 8,927,256 32,394,040 41,321,296 35,352,J 7

1,602,136 769,560 17,742,446 13,314,.

i 33,217,025 27,937, 4.

7,186,297 (2,233,086)

(1,463,526) 50,959,471 41,251,t 8,788,433

$309,277,5_25 $269,979,;

_- I p $33,773 M $45_,492,514 4

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COMBINING STATEMENT OF REVENUE AND ' EXPENSE AND RETAINED EARNINGS UTILITY FUNDS FOR Tile FISCAL YEAR ENDED SEPTEMBER 30, 1979 -

CITY OF GAINESVILLE, FLORIDA ELECTRIC FUND OPERATING REVENUES Sales and Service Charges $ 34,318,322 Other Operating Revenue 1,104,021 TOTAL OPERATING REVENUES 35,422,343 OPERATING EXPENSES BEFORE DEPRECIATION AND AMORTIZATION Operations and Maintenance 17,134,128 Administrative and General 3,599,122 (TOTAL OPERATING EXPENSES BEFORE DEPRECIATION AND AMORTIZATION) (20,733,250)

OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION 14,689,093 (DEPRECIATION AND AMORTIZATION) ( 3,364,254)

OPERATING INCOME 11,324,839 NONOPERATING REVENUE .

Interest 4,773,736 NONOPERATING EXPENSE (Interest) ( 7,081,264)

INCOME (LOSS) BEFORE EXTRAORDINARY ITEM AND OPERATING TRANSFER 9,017,311 ,

I EXTRAORDINARY ITEM - GAIN ON ADVANCE REFUNDING OF LONG-TERM DEBT 2,893,900 INCOME (LOSS) BEFORE OPERATING TRANSFER 11,911,211 (OPERATING TRANSFER TO GENERAL FUND) ( 3,950,004)

NET INCOME (LOSS) RETAINED 7,961,207 RETAINED EARNINGS (DEFICIT), BEGINNING

As Previously Reported 28,471,982 Accounting Adjustments 8,244,873 As Restated 36,716,855.

11onoperating Contributions ( 1,043,498)

RETAINED EARNINGS (DEFICIT), ENDING $ 43,634,564 l

(AS RESTATED) 1979 1978 r, TOTAL TOTAL j WATER SEWER ALL ALL

' FU; IDS FUND FUND FUNDS

! $ 4,151,344 $ 4,233,476 $ 42,703,142 $ 41,770,824 80,409 7,426 1,191,856 1,005,524, 4,231,753 4,240,902 43,894,998 42,776,348 1,416,268 1,423,068 19,973,464- 18,760,810 1,228,987 1,039,537 5,867,646 5,834,559 a

(2,645,255) (2,462,605) (25,841,110) (24,595,369) i 1,586,498 1,778,297 18,053,888 18,180,979

, ( 962,906) (1,116,566) ( 5,443,726) ( 5,333,815) 623,592 661,731 12,610,162 12,847,164 232,288 176,244 5,182,268 2,270,221

( 979,869) ( 961,759) ( 9,022,892) ( 7,411,807)

( 123,989) ( 123,784) 8,769,538 7,705,578 1,942,448 51,753 4,888,101 0 1,818,459 ( 72,031) 13,657,639 7,705,578 0 0 ( 3,950,004) ( 3,087,449) 1,818,459 ( '72,031) 9,707,635 4,618,129 4,7'86,287 (3,077,235) 30,181,034 29,456,635 1,668,436 1,157,493 11,070,802 7,177,073 6,454,723 (1,919,742) 41,251,836 36,633,708 515,251 ' 528,247 0 0

$ 8,788,433 $(1,463 2 526). $ 50,959,471_ $ 41,251,837 L

COMBINING STATEMENT OF CllANGES IN FINANCIAL POSITION UTILITY FUNDS F0k TIIE FISCAL YEAR ENDED SEPTEMBER 30, 1979 CITY OF GAINESVILLE, FLORIDA ELECTRIC FUND SOURCE OF WORKING CAPITAL Income (Loss) Before Extraordinary Item $ 5,067,307 Items Not Requiring Outlay of Working Capital:

Depreciation and Amortization 3,599,631 Working Capital Provided From Operations Before Extraordinary Item 8,666,938 Extraordinary Item 2,893,900 Working Capital Provided From Operations 11,560,838 -

Contributions From Customers and Developers 0 Federal Grants in Aid of Construction 0 Nonoperating Contributions ( 1,043,498)

Increase (Decrease) in Current Liabilities Payable From Restricted Assets 1,582,944 Decrease (Increase) in Miscellaneous Deferred Debits 258,071 Decrease in Settlements With Fuel Suppliers (Long-Term) 1,408,500 Proceeds of Long-Term Liabilities 120,425,170 Materials Salvaged 107,561 TOTAL SOURCE OF WORKING CAPITAL 134,299,586 ,

USE OF WORKING CAPITAL Property, Plant and Equipment Additions:

Utility Plant in Service 2,690,061 Construction Work in Progress 34,518,613 Plant Removal Costs 132,721 Increase in Restricted Assets 2,469,846 Long-Term Debt Refunded 94,409,934 Payment on Long-Term Liabilities 178,659 Decrease in Deferred Credits 224,226 Increase in Unamortized Bond Discount 341,792 Refund of Contribution By Developer 0 (TOTAL USE OF WORKING CAPITAL) (134,965,902_)

( 666,316)

(DECREASE) INCREASE IN WORKING CAPITAL (BELOW)

C11ANGES IN WORKING CAPITAL BY COMPONENT Current Assets - Increase (Decrease):

Cash 118,771 Receivables (All) ( 579,756)

Due From Other Funds 49,278 Prepaid Expenses ( 28,012)

Inventories 360,570 Short-Term Investments 0 Settlements With Fuel Suppliers 1,219,931 Current Liabilities - Decrease (Increase):

Accounts Payable ( 1,776,975)

Accrued Liabilities 73,438 Due to Other Funds ( 103,561)

(DECREASE) INCREASE IN WORKING CAPITAL (ABOVE) $( 666,316) 1979 1978 TOTAL TOTAL 7

WATER SEWER ALL ALL FUND FUND FUNDS FUNDS

$( 123,989) $( 123,784) $ 4,819,534 $ 4,618 1;'.9 3

1,005,102 1,186,845 5,791,578 5,543,504 881,113 1,063,061 10,611,112 10,161,633 1,942,448 51,753 4,888,101 0 2,823,561 1,114,814 15,499,213 10,161,633 1,378,945 4,590,179 5,969,124 1,425,421 0 0 0 499,067 515,251 528,247 0 0 j ( 512,521) ( 382,051) 688,372 ( 2,515,166)

( 1,721) ( 995) 255,355 ( 505,233) 0 0 1,408,500 0 15,429,305 14,145,525 150,000,000 50,000,000 1,102 0 108,663 235,112 19,633,922 19,995,719 173,929,227 59,300,834 2,309,594 3,987,626 8,987,281 4,611,733

( 391,748) 1,101,436 35,228',301 12,075,442 650 0 133,371 216,640

( 691,529) ( 719,276) 1,059,041 38,103,251 18,615,938 15,316,078 128,342,000 0 0 1,200 179,859 3,111,252 87,146 0 311,372 360,756 0 0 341,792 0

- 0 0 0 62,500 (19,930,051) (19,687,064) (174,583,017) (58,541,574)

( 296,129) 308,655 ( 653,790) 759,260 3,526 ( 710) 121,587 179,054

( 70,173) ( 37,669) ( 687,598) 1,449,083

( 209,144) 290,684 130,818 18,740

( 3,739) ( 1,170) ( 32,921) 7,879 0 0 360,570 177,145 0 0 0 ( 180,000) 0 0 1,219,931 (. 582,892)

( 24,969) 43,034 ( 1,758,910) 400,043 6,059 16,333 95,830 ( 97,217) 2,311 ( 1,847) ( 103,097) ( 612,575)

$( 296,129) $ 308,655 $( 653,790) $ 759,620 t

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STATEMENTS OF NET REVENUES IN ACCORDANCE WITil BOND ORDINANCES COMBINED UTILLTY FUNDS FOR Tile FISCAL YEARS ENDED SEPTEMBER 30, 1979 AND 1978 CITY OF GAINESVILLE, FLORIDA 1979 1978 GROSS REVENUES Sales of Electricity $34,318,322 $33,386,372 Other Electric Operating Revenue 1,104,021 985,028 Interest income - Electric Fund (Note 2) 1,377,676 917,608 Gross Electric Revenues 36,800,019 35,289,008 Sales of Water 4,151,344 4,236,227 Ciher Water Operating Revenue (Note 1) 933,316 1,017,303 Interest Income - Water Fund (Note 2) 234,025 135 544 Gross Water Revenues 5,318,685 5,387, Sewer Service Charges 4,233,476 4,056,051 Other Sewer Operating Revenue (Note 1) 629,771 520,789 Interest Income - Sewer Fund (Note 2) 145,197 Gross Sewer Revenues -

177,730 __4,722,037 5,040,977_

TOTAL GROSS REVENUES 47,159,681 45,400,119 OPERATING EXPENSES BEFORE DEPRECIATION AND AMORTIZATION Electric Fund:

Operations and Maintenance 17,134,128 16,173,510 Administrative and General (Note 3) 3,599,122 3,596,485 Electric Fa l Expenses .20,733,250 19,769,995 Water Fund; Operations and Maintenance 1,416,268 1,296,614 Administrative and General (Note 3) 1,229,997 1,240,303 Water Fund Expenses 2,646,265 2,536,917 Sewer Fund:

Operations and Maintenance 1,423,068 1,290,687 Administrative and General (Note 3) 1,040,079 1,039,431 Sewer Fund Expenses 2,463,147 2,330,118 (TOTAL OPERATING EXPENSES BEFORE DEPRECIATION AND AMORTIZATION) (25,842,662) (24,637,030)

NET REVENUES IN ACCORDANCE WITH BOND ORDINANCES Electric 16,066,769 15,519,013 Water 2,672,420 2,852,157 Sewer 2,577,830 2,391,919 TOTAL NET REVENUES IN ACCORDANCE WITH BOND ORDINANCES $21,317,019 12_0,763,089 NOTE 1 - Other water a-d sewer operating revenues include t ertain connections charges as revenues in accordance with bond ordinances, which is not in accordance with generally accepted accounting principics.

NOTE 2 - Interest . income does not include $3,392,837 in 1979, and $1,071,871 in 1978, for interest earned on investments in the construction trust funds which can only be used for capital improvements or transferred to the additional reserve in the electric, water and sewer sinking fund.

NOTE 3 - Charges for an inver.iory of utility plant properties are expensed in full tbove in the period incurred 1.n accordance with an interpretation of bond ordinancas by the City's legal counsel. These charges are reflected on the financial statercents which a*.c in accordance with generally accepted accounting principles as deferred debits and are being amortized over ten years.

l STATEMENTS OF NET REVENUES IN ACC01DAMCE WITl BOND ORDINANCES ELECTRIC UTILITY FUND FOR Tile FISCAL YEARS ENDED SEPTEMBER 30, 1979 AND 1978 CITY OF GAINESVILLE, FLORIDA 1979 1978 OPERATING REVENUES

' Sales of Electricity Residentini Sales $ 11,073,097 $ 10,801,439 Commercial and General Power 11,566,870 11,150,316 i Fuel Adjustment 9,936,917 10,602,048 Street and Traffic Lighting 444,204 395,467 Bulk Power Sales 1,297,234 437,102 j

Total Sales of Electricity 34.318,322 33,386,372 l,

Other Operating Revenues

,, Maintenance of Traffic and Street Lighting 57,701 51,673 Service Charges 323,742 176,588 Utility Surcharges 564,640 613,198 Pole Rentals 67,045 43,303

, Miscellaneous 90,893 100,266 Total Other Operating Revenues 1,104,021 985,028

TOTAL OPERATING REVENUES 35,422,343 34,371,400 i<

OPERATING EXPENSES BEFORE DEPRECIATION

.. AND AMORTIZATION Operations and Maintenance Power Production 15,718,562 14,763,410 Transmission 251,228 247,693 Distribution 1,164,338 1,162,407

, Total Operations and laintenance 17,134,128 16,173,510 Administrative and General Customers' Accounts 703,267 801,303 Administrative and General 2,895,855 2,795,182 Total Administrative and General 3,599,122 3,596,485 (TOTAL OPERATING EXPENSES BEFORE DEPRECIATION AND AMORTIZATION) (20,733,250) (19,769,995)

OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION 14,689,093 14,601,405 INTEREST INCOME 1,377,676 917,608

. NET REVENUES IN ACCORDANCE WITH BOND ORDINANCES $ 16,066,769 $ 15,519,013 NOTE 1 - Charges for an inventory of utility plant properties are expensed in full above in the period incurred in accordance with an interpretation of bond ordinances by the City's legal counsel. These charges are reflected on the financial state-nents which are in accordance with generally accepted accounting principics as deferred debits and are being amortized over ten years.

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i STATDIENTS OF NET REVENUES IN ACCORDANCE WITil BOND ORDINANCES WATER UTILITY FUND FOR Tile FISCAL YEARS ENDED SEPTEMBER 30, 1979 ANP 1978 CITY OF GAINESVILLE, FLORIDA 1979 1978 OPERATING REVENUES Sales of Water General Customers $ 3,202,304 $ 3,302,061 University of Florida 513,093 517,446 Fire Protection 329,926 285,345 Electric Plant 106,021 131,375 Total Sales of Water 4,151,344 4,236,227 Other Operating Revenues Utility Surcharges 75,166 92,175 Miscellaneous 5,243 9,413 Capital Facilities Charges (Notes 1 and 2 Below) 298,050 265,300 Front Footage, Meter Installation, and Other Connection Charges (Note 2 Below) 554,857 650,415 Total Other Operating Revenues 933,316 1,017,303 TOTAL OPERATING REVENUES 5,084,660 5,253,530 OPERATING EXPENSES BEFORE DEPRECIATION AND AMORTIZATION Operations and Maintenance Source of Supply Expense 8,884 9,036 Pumping Expense 489,485 430,600 Water Treatment Expense 596,697 540,950 Transmission and Distribution Expense 321,202 316,028.

Total Operations and >bintenance 1,416,268 1,296,614 Administrative and General Customers' Accounts 376,542 363,605 Administrative and General 852,445 849,620 Inventory of Plant Assets By Consulting 1,010 27,078 Engineers (Note 3) 1,229,997 1,240,303 Total Administrative and General *

(TOTAL OPERATING EXPENSES BEFORE DEPRECIATION (2,646,265) (2,536,917)

AND AMORTIZATION)

OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION 2,438,395 2,716,613 .

234,025 135,544 INTEREST INCOME NET REVENUES IN ACCORDANCE WITil BOND ORDINANCES $ 2,672,420 $ 2,852,157 NOTE 1 - Funds received by the City as water capital facilities charges may be used only for capital improvement pertaining to the water system or for debt service re-quirements in connection with such capital improvements.

l NOTE 2 - Capital facilities, front footage, meter installation, an'd other connections l charges are revenues in accordance with bond ordinances, but not in accordance with generally accepted accounting princip1cs.

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! NOTE 3 - Charges for an inventory of utility plant properties are expensed in full above

! in the period incurred in accordance with an interpretation of bond ordinances by the City's legal counsel. These charges are reflected on the financial state-ments which are in accordance with generally accepted accounting principles as deferred debits 2nd are being amortized over ten years.

STATEMENTS OT NET REVENUES IN ACCORDANCE WITH BOND ORDINANCES SEWER UTILITY FUND FOR THE FISCAL YEARS ENDED SEPTEMBER 30, 1979 AND 1978 CITY OF GAINESVILLE, FLORIDA 1979 1978 f OPERATING REVENUES Sewer Service Charges Sanitary Sewer Billings $ 4,233,476 $ 4,056,051 Other Operating Revenues Miscellaneous 7,426 11,083 Capital Facilities Charges (Notes 1 and 2 Below) 473,134 386,490

, Front Footage and Other Connection Charges

~'

(Note 2 Below) 149,211 123,216 Total Other Operating Revenues 629,771 520,789

~~

TOTAL OPERATING REVENUES 4,863,247 4,576,840 OPERATING EXPENSES BEFORE DEPRECIATION

, AND AMORTIZATION Operations and Maintenance

)' Collection Expense Pumping Expense 329,939 242,328 274,070 197,376 Treatment and Disposal Expense 850,801 819,241

f. }' Total Operations and Maintenance 1,423,068 1,290,687 l

Administrative and General Customers' Accounts 241,985 255,404 i Administrative and General 797,553 769,446 Inventory of Plant Assets By Consulting Engineers (Note 3) 541 14,581 Total Administrative and General 1,040,079 1,039,431 (TOTAL OPERATING EXPENSES BEFORE DEPRECIATION AND AMORTIZATION) (2,463,147) (2,330,118)

OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION 2,400,100 2,246,722 INTEREST INCOME 177,730 145,197 ji NET REVENUES IN ACCORDANCE WITH BOND ORDINANCES $ 2,577,830 S 2,391,919 i

NOTE 1 - Fundt, received by the City as sewer capital facilities charges may be used only for :apital improvements pertaining to the sewer system or for debt service re-quirements in connection with such capital improvements.

l: NOTE 2 - Capital facilities, front footage, and other connections charges are revenues in nacordance with bond ordinances, but not in accordance with generally accept-ed accounting principles.

! NOTE 3 - Charges for an inventory of utility plant properties are expensed in full above in the period incurred in accordance with an interpretation of bond ordinances by the City's. legal counsel. These charges are reflected on the financial state-ments which are in accordance with generally accepted accounting principles as ,

deferred debits and are being amortized over ten years.

1 6

. ~ _ -

SCllEDULE OF UTILITY Pl. ANT PROPERTIES COMBINED UTILITY FUNDS SEPTEMllER 30, 1979 CITY OF GAINESVILLE, FLORIDA BALANCE 9-30-78 AS  ;

PREVIOUSLY REPORTED ELECTRIC UTILITY FUND Production Plant $ 61,370,124 t Euclear Fuel 617,645 1 Transmission and Distribution Plant 49,129,058 General and Common Plant 6,064,763 i Unclassified Plant In Service 1,723,003 Construction Work In Progress 37,113 Plant Acquisition Adjustment 0 TOTAL ELECTRIC UTILITY FUND 118,941,706 WATER UTILITY FUND Supply, Pumping and Treatment Plant 11,922,389 Transmission and Distribution Plant 24,068,813 General Plant 916,763 Unclassified Plant In Service 272,758 TOTAL WATER UTILITY FUND 37,180,723 SEWER UTILITY FUND Pumping and Treatment Plant 5,800,180 Collection Plant 22,356,533

'i General Plant 1,288,555, Unclassified Electric Plant In Service 17,213,728 Construction Work In Progress 763,354 TOTAL SEWER UTILITY FUND 47,422,350 CONSTRUCTION TRUST FUNDS Construction Work In Progress For:

Electric Utility Fund 33,268,457 UTILITY PLANT IMPE0VEMENT FUND Construction Work In Progress For:

Electric Utility Fund 1,144,553 Water Utility Fund ,

1,295,013 Sewer Utility Fund 0 TOTAL UTILITY PLANT IMPROVEMENT FUND 2,439,566 TOTALS $239,252,802 i

b

.c UTILITY PLANT PROPERTIES BALANCE

l 9-30-78 AS

i ACCOUNTING PREVIOUSLY SALES AND BALANCE I

ADJUSTMENT RESTATED ADDITIONS RETIREMENTS 9-30-79 r- t

$(7,164,815) $ 54,205,309 $ 9,739 $ 54,215,048 7 l

871,243 617,645 253,598

, 3,001,242 52,130,300 1,878,679 $321,242 53,687,737

( 109,050) 5,955,713 369,982 27,984 6,297,711 ,

1,819,790 3,542,793 199,963 3,742,756 37,113 ( 37,113) 0 0 15,213 15,213 q,

i. (2,452,833) 116,488,873 2,690,061 349,226 118,829,708 r

tm 4 11,923,421 1 11,922,389 1,032 24,068,813 2,395,771 4,765 26,459,819 r 916,763 46,003 962,766

( 132,687) 140,071 (133,212) 6,859

( 132,687) 37,048,036 2,309,594 4,765 39,352,865 5,800,180 125,202 17,000 5,908,382 22,356,533 , 4,470,679 22,512 26,804,700 1,288,555 103,088 1,391,643

( 72,252) 17,141,476 52,011 17,193,487 763,3,24 (763,354) 0

( 72,252) 47,350,098 3,987,626 39,512 51,298,212 33,268,457 33,969,738 67,238,195 1,144,553 548,87.i 1,693,428 1,295,013 (391,74t) 903,265 0 1,101,436 1,101,436 2,439,566 1,258,563 3,698,129

$(2,657,772) $236,595,030 $44,215,582, $393,503 $280,417,109

J SCllEDULE OF ACCUMUI.ATED DEPltECTATTON AND AMORTIZATION COMBINED UTILITY FUNDS SEPTEMBER 30, 1979 i CITY OF CAINESVILLE, FLORIDA >

BALANCE i 9-30-78 AS PREVIOUSLY 4

REPORTED ELECTRIC UTILITY FUND Production Plant $15,838,997 i Nuclear Fuel 169,103 ,

i Transmission and Distribution Plant 9,236,146 ,

I General and Common Plant 2,064,409 ,

Unclassified Plant In Service 0 Construction Work'In Progress O Plant Acquisition Adjustment 0 !

TOTAL ELECTRIC UTILITY FUND 27,308,655 F 4

WATER UTILITY FUND

Supply, Pumping and Treatment Plant 2,153,384 Transmission and Distribution Plant 6,351,926 General Plant 510,427 Unclassified Plant In Service 5,455 TOTAL WATER UTILITY FUND 9,021,192 SEWER UTILITY FUND l j Pumping and Treatment Plant 1,820,474 Collection Plant '

5,343,526 General Plant 603,085 ,

Unclassified Electric Plant In Service 333,006 (

Construction Work In Progress 0 TOTAL SEWER UTILITY FUND 8,100,091 TOTALS $44,429,938 f

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i ACCUMULATED PROVISION FOR DEPRECIATION AND AMORTIZATION BALANCE DEPRECIATION ACCOUNTING 9-30-78 AS AND SALES AND BALANCE ADJUSTMENT RESTATED AMORTIZATION RETIREMENTS 9-30-79

! $(907,993) $14,931,004 $1,697,441 $16,628,445 169,103 135,752 304,855-r- 470,153 9,706,299 1,414,869 $349,427 10,771,741 l 23,517 2,087,926 323,517 24,958 2,386,485 0 0

_ 0 0 l 0 0 Ii (414,323) 26,894,332 3,571,579 374,385 30,091,526

[, 2,153,384 335,186 2,488,570 6,351,926 .

581,396 4,312 6,929,010 r' 510,427 80,567 590,994

{ 5,455 3,713 9,168 9,021,192 1,000,862 4,312 10,017,742

[

1,820,474 193,613 17,000 1,997,087 '

5,343,526 505,586 22,512 5,826,600 603,085 130,587 733,672 333,006 345,695 678,701 0 0 8,100,091 1,175,481 39,512 9,236,060

$(414,323) $44,015,615 $5,747,922 $415,209 $49,345,328 i.

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- City of Kissimmee, Florida NOTES TO FINANCIAL STATEMENTS September 30, 1978 NOTE A -

SUMMARY

OF SIGNIFICANT ACCOUNTING POLICIES The City of Kissimmee maintains its accounting in accordance with the principles and policies set forth by the National Committee / Council on Governmental Accounting as well as generally accepted accounting principles as promulgated by the American Institute of Certified Public Accountants and Financial Accounting Standards Board. The annual oper-ating budget serves as the legal authorization for expenditures.

FUND ACCOUNTING A governmental accounting system should make it possible (1) to show that all applicable legal provisions have been complied with and (2) to determine fairly and with full disclosure, the financial position and results of financial operations of the various funds of the City.

In order to accomplish these goals, and in response to specific legal provisions, the City's accounting records are organized and operated on a fund basis. A fund is defined as a fiscal and accounting entity, with a self-balancing set of accounts recording cash and other financial resources together with all related liabilities, residual equities, or balances and changes therein, which are segregated for the purpose of carrying on the specific activities, or attaining certain objectives in accordance with special regulations, restrictions or limitations.

Amounts receivable from or payable to other funds, are shown in the accounts of each fund and separately presented in the financial state-ments until liquidated by payment or interfund transfer.

The following types of funds are used in accounting for the finan-cial operations of the City of Kissimmee:

Governmental Funds

1. General Fund to account for all financial resources not properly accounted for in another fund;

2. Special Revenue Funds to account for the proceeds of specific revenue sources (other than Special Assessments, Expendable Trusts or for major capital projects) that are legally restricted to expenditure for specified purpose.

3. Capital Projects Fund to account for the financial resources to be used for acquisition or construction of major capital facilities, (other than those financed by Proprietary Funds, Special Assessments Fund and Trust Funds) .

4. Debt Service Fund to account for the accumulation of resources and the payment of principal and interest for general long term debt.

5. Special Assessment Funds to account for the financing of public improvements or services deemed to benefit the proper-ties against which special assessments are levied.

• City of Kissimmee, Florida NOTES FO FINANCIAL STATEMENTS September 30, 1978 NOTE A -

SUMMARY

OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

FUND ACCOUNTING (Con't.)

Proprietary Funds

6. Enterprise Funds--to account for operations (a) that are financed and operated in a manner similar to private.

business enterprises--where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through '

user charges; or (b) where the governing body has decided that periodic determination or revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accounta-bility or other purposes.

Fiduciary Funds i

7. Trust and Agency Funds--to account for assets held by a governmental unit in a trustee capacity as an agent for individuals, private organizations, other governmental units and/or other funds. These include (a) Expendable Trust Funds, (b) Non-expendable Trust Funds, (c) Pension ,

Trust Funds and (d) Agency Funds.

Account Groups ,

Tl$e Account Groups are used to establish accounting '

control and accountability for the government's general fixed assets and the unmatured principal of its general long-term debt (General Fixed Assets and General Long-Tem Debt Account Groups) . These are not considered funds as they do not reflect available financial resources and related liabilities.

BASIS OF ACCOUNTING The Governmental Funds are maintained on the modified ~ accrual basis of accounting. Under this method of accounting, revenues are generally recognized when they become measurable and available. Revenues which are susceptible to accrual are as follows:

Property Taxes Garbage and Trash Fees Interest

. City of Kissimmee, Florida NOTES TO FINANCIAL STATEMENTS September 30, 1978 L NOTE A -

SUMMARY

OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

BASIS OF ACCOUNTING (Con' t.)

Other revenues are not susceptible to accrual since they do not meet the criteria of measurable and available. Expenditures are generally recorded as the liabilities are incurred, if measurable, except for accrued annual and other leave, which is considered an expenditure when due. An encum-brance system is employed to account for any commitments resulting from approved purchase orders and contracts. Encumbrances are not treated as expenditures nor as liabilities when initially recorded. Under this method, outstanding encumbrances at year end are reported as reservations of fund balance for subsequent year expenditure based on the encumbered appropriation carried ever, t

The Proprietary Funds are maintained on the accrual basis of accounting. This method of accounting relates cost and expenditures to the time period in which benefits of the outlays are received. It is intended to provide an accurate matching ot these benefits with associ-ated revenues. Revenues are recognized when they have been earned and are measurable; expenses are recognized when they are incurred, if measurable.

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

The Fiduciary Funds are maintained on the accounting basis consist-ent with fund accounting measurement objectives. Non-expendable Trust and Pension Trust Funds should be accounted for on the accrual basis; Expendable Trust Funds should be accounted for on the modified accrual basis. Agency Fund assets and liabilities should be accounted for on the modified accrual basis.

Budgets, when presented, have been prepared on the same basis of accounting as that reflected above for each fund, except for ereum-brances. Encumbrances are part of the overall budgetary process and ,

thus, are shown along side of the actual expenditures when a comparison with budget is necessary. ,

t All fixed assets of the City, (other than those recorded in the Proprietary Funds or Trust Funds) are General Fixed Assets. These i assets belong to the City, as a whole, rather than to any one of the City's individual funds and are accounted for by placing them in a single, self-balancing group of accounts called the General Fixed Assets Group of Accounts. The acquisition of'these assets by the City is accounted for as an expenditure in the fund in which it is made and also, as in increase in the General Fixed Assets Group of Accounts.

I City of Kissimmee, Florida NOTES 'IO FINANCIAL STATEMFNTS September 30, 1978 '

NOTE A -

SUMMARY

OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

BASIS OF ACCOUNTING (Con't.)

All long-term liabilities (other than those recorded in the Proprietary Funds and Trust Funds) are General Long-Term Debts. These liabilities belong to the City, as a whole, and are accounted for by placing them in a single self-balancing group of accounts called General Long-Term Debt.

REVENUE RECOGNITION Utility (Electric, Water, Sewer and Utility Taxes) operating revenues are generally recognized on the basis of cycle billings lendered monthly. The cycle with the meter reading date closest to September 30, is selected as the cutoff for accrual purposes. Tne City does not accrue revenues for services delivered during'the next fiscal year that have not been read or billed by September 30.

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

INVENTORIES Supplies and fossil fuel inventories are stated at the lower of cost (determined on the first-in, first-cut method) or market. Inven-tories in the Governmental Funds are accounted for by the consumption method, wherein inventories are charged as expenditures when used.

l FIXED ASSETS, DEPRECIATION AND AMORTIZATION Fixed assets owned by the City, except those recorded in the Proprietary Funds and Trust Funds, are reflected at cost in the General ,

Fixed Assets Group of Accounts. Certain improvements such as streets, bridges, sidewalks, curbs, drainage systems and lighting systems are not recorded in the accounting records in conformance with the recommen -

dation of the American Institute of Certified Public Accountant's Audit '

Guide - Audits of[ State and Local Governmental Units. No provision for depreciation is made for the general fixed assets.

Fixed assets in the Proprietary Funds and Trust Funds are recorded at cost, including any applicable, significant labor charges. Costs of depreciable property retired or replaced, are removed from the fixed assets and are charged to accumulated depreciation. All expenditures for maintenance and repairs of property and the cost of replacement City of Kissimmee, Florida NOTES TO FINANCIAL STATEMENTS September 30, 1978 NOTE A -

SUMMARY

OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

FIXED ASSETS, DEPRECIATION AND AMORTIZATION (Con't.)

items determined to be less than units of property, are charged to operating expenses. Depreciation has been computed using the straight line method over the useful lives of the assets.

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

NUCLEAR FUEL Amortization of nuclear fuel is based on the cost, which is pro-rated by fuel assembly batch in accordance with the termal energy that each assembly produces. Due to the uncertain future of the nuclear ,

fuel reprocessing industry and government approvals for reprocessing and plutonium recycling, the City is estimating no value for residual credits or costs for future reprocessing.

PENSION PLANS The City has three pension plans covering substantially all^the full time employees. General employees are covered by a plan estab-lished during 1968, that was amended and restated in 1975. Employees of the Police and Fire Departments were enrolled in separate retirement plans adopted by the City effective January 1, 1976, superceding the previous State established plans. Annual costs of the pension plans are actuarially computed and include amortization of past service costs over a period of 30 years for the general employee's plan and 40 years for the Police and Fire plans. General employees contribute 4% of their annual salary to their plan. The City's policy is to fund the annual pension costs in the annual budget. (See Note C to Financial Statements.)

CONTRIBUTED CAPITAL FROM PRIVATE SOURCES Developers advance monies to the City to cover estimated costs of constructing utility distribution facilities to and within-their development. Upon receipt, these monies are credited to a liability account. Depending on the number of residential customers added to these distribution facilities, some, all or none of their advance is ,

returned during a three-year period. Repayment of monies are deducted from the original amount advanced. Any advance monies remaining, after the three-year period has expired, are credited to Contributed Capital.

l l

City of Kissinnee, Florida i NOTES 'IO FINANCIAL STATEMENTS j September 30, 1978 -

NOTE A -

SUMMARY

OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

RESERVES Governmental Funds and Certain Fiduciary Funds Reserves are used to indicate that a portion of the fund balance is not appropriable for expenditure or is legally segregated for a specific future use. Usage of reserves has been limited to the following items: ,

1. Reserve for Encumbrances - indicates portion of the fund balance that has been segregated for expenditure ,

upon vendor performance. This reflects items that have been ordered or committed for at year end which j have not been received nor paid for. (See BASIS OF ACCOUNTING for description of encumbrances.)

2. Reserve for Advances (Specific Fund) - indicates portion of the fund balance that has been segregated l for a long-term (more than one year) advance to {

another fund. Amount is unavailable for appropriation  ;

for at least one year.

Proprietary Funds and Certain Fiduciary Funds [

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

1. Reserve for Bond Debt Service - restricted for Current servicing of the~ revenue bonds.

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

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

Reserves are also shown to segregate the fund bal'ance of the Pension Trust Funds as being legally available only for payment of retirement benefits.

NOTE B - FULL CASH DEFEASANCE ADVANCE REFUNDING BOND ISSUE In January, 1978, the City issued $38,925,000 of bond issues for purposes of advance refunding all of its Electric, Water and Sewer Revenue Bonds and providing additional construction funds. An escrow agreement was entered into with Exchange Bank of Tampa and $30,408,600 was deposited in book-entry U.S. Treasury Obligations - State and Local

. City of Kissimmee, Florida NOTES 'IO FINANCIAL STATEMENTS September 30, 1978 NOTE B - FULL CASIl DEFEASANCE ADVANCE REFUNDING BOND ISSUE (Continued)

Government Series which will mature at such times and in such amounts to pay all principal and interest on the refunded bon /,s. Additional construction funds were also obtained from the new issues for the following purposes:

t Electric Fund Installation of second main transformer in power plant substation and construction of a 230 KV tie line with the Orlando Utilities Commission $ 4,407,778 Water and Sewer Fund Construction of four primary water feeders, two main sewer collector lines, purchase of land for effluent disposal site for projected regional sewer plant 1,982,000 Total Construction Funds S 6,389,778 Under the terms of the refunding bond resolution, the Water System will now be combined with the Sewer System.

Refunded Revenue Certificates, as of January 4, 1978:

Electric and Water Fund:

Issue Year Principal Interest 1963 $ 2,950,000 $ 1,022,375 1967 1,520,000 904,710 1970 932,900 1971 850,000 1,202,500 1971-A 685,000 498,315 1973 3,445,000 3,526,325 1975 3,900,000 4,711,605 14,282,900 11,865,830 Sewer Fund:

Issue Year 1954 $ 210,000 $ 30,265 1965 610,000 306,205 1977 State Bond, Series F 1,490,000 1,613,320 2,310,000 1,949,790 Total $16,592,900 $13,815,620 Total Principal and Interest $30,408,520

. City of Kissimmee, Florida s NOTES TO FINANCIAL STATEMENTS September 30, 1978 NOTE B - FULL CASH DEFEASANCE ADVANCE REFUNDING BOND ISSUE (Continued)

Refunding Revenue Bonds, as of January 4, 1978:

Electric Revenue Bonds, Series A $18,400,000 Water and Sewer Bonds, Series A 5,525,000 Special Obligation Bonds, Series 1977 15,000,000 Total $38,925,000 Savings realized to the City through the refunding program were as follows:

Discounted at Aggregate 5.99% (Present Value)

Electric Fund $ 2,099,602 $ 1,006,683 Water & Sewer Fund 650,414 264,426 Total _$ 2,750,016 $ 1,271,109 Additional savings will be realized over the term of the bond issue through release of certain restrictive covenants, such as accumulation of funds, investment policies, etc.

American Institute of Certified Public Accountants in its Statement of Position 78-5, issued June 30, 1978, sets forth criteria for deter-mining defeasance (legal satisfaction of debt under terms of a defeas-ance provision). It is the opinion of management that all the criteria have been met and therefore, in accordance with the Statement, we have not included any of the old debt (refunded bonds) in the financial statements.

This Statement of Position also requires a calculation of the gain /

loss on the refunding program based on the net increase / decrease of principal. This calculation is as follows:

Electric Water and Sewer Net New Bonds Issued $16,146,428 $2,972,286 Net Old Bonds Refunded 15,570,666 3,116,287 Loss (Gain) $ 575,762 'S (144,001)

The above calculation is simply a " bookkeeping type entry" to remove the old bonds and replace with the new bonds. It is management's opinion, however, that this calculation does not fairly present the gain / loss transaction. Management feels instead that the change in total aggregate debt service provides a more accurate determination of the gain (savings) involved. Consequently, the savings figure presented above in this footnote of $2,750,016 (or $1,271,109 as discounted)

. .~ - . - - -,

!- i I

City of Kissimmee, Florida NOTES TO FINANCIAL STATEMENTS f

September 30, 1978 r

f NOTE B - FULL CASH DEFEASANCE ADVANCE REFUNDING BOND ISSUE (Continued) reflect the true gain (savings) of the refunding transaction. However, e in order to be in compliance with applicable authoritative literature, the gain / loss as calculated above under Statement of Position 78-5 has been made, recorded in the accounting records and is reflected as an extraordinary item on the Statements of Revenue and Expense of both the  ;

Electric Fund and Water and Sewer Fund.

NOTE C - LITIGATION SETTLEMENT - FLORIDA GAS TRANSMISSION COMPANY AND AMOCO PRODUCTION COMPANY i i In 1968, eight cities of which Kissinnee was one, filed a petition j j to intervene in Federal Power Commission (FPC) proceedings opposing l

. Florida Gas Transmission Company's (FGT) request to convert a 882 mile- '

natural gas pipeline to a pipeline providing petroleum products. An agreement was reached in 1972, wherein the cities were to receive ,

natural gas under preferred interruptable contracts, as available.

Subsequently, the cities complained that FGT violated the contracts by ,

failing to use their best efforts in obtaining sufficient amounts of l

. gas to prevent curtailment of gas deliveries to the cities. In December, f j 1975, the U.S. District Court in Miami gave the cities a favorable l

' ruling, forcing FGT to abide by the 1972 Agreement. Shortly thereafter, ,

the cities complained that FGT violated the contracts by g'iving a higher priority to one of their affiliate companies and that they did not use

, their best efforts,to obtain gas for the pipeline. Additionally, FGT r and Amoco had joined together and ir.plenented a series of agreements l l over a number of years which deprived FGT's customers of significant gas [

t reserves.  !

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On July 12, 1977, concurrent Settlement Agreements were reached with both Florida Gas Transmission Company and Amoco Production Company _

providing for a cash settlement of $3 million and $15 million worth of gas, over four years, for the eight cities. The $15 million worth of 4 gas is calculated based on FGT providing at least 20.6 million mmbtus l

of Amoco gas at the rate of at least 72.820 per mmbtu less than the  !

) equivalent cost of oil for that month. Should this differential not i

i be maintained, or at least 20.6 million mmbtus of gas not be delivered, i then a cash settlement will be made. Kissinnee received $163,178 on  !

November 21, 1977, as its share of the $3 million cash settlement, less legal costs. The receipt of the $163,178 has been reflected as an Extraordinary Income item in the Statement of Revenue, Expenses and Changes in the Fund Balance for'the Electric Fund. Estimated gas bene- l l fits are' expected to be $1.5 - $1.75 million over the four-year period which will be reflected in lower operating costs and operating revenues.

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City of Kissimmee, Florida NOTES 'IO FINANCIAL STATEMENTS September, 30, 1978 NOTE D - LITIGATION SETTLEMENT - COLT INDUSTRIES AND SMITH & GILLESPIE On March 16, 1978, the City accepted the Settlement Agreements offered by Colt Industries and Smith & Gillespie engineers as an out of court settlement for a lawsuit filed by the City on February 22, 1977.

Terms of the Agreements provide that Colt Industries will re-manufacture the two diesel engines (electrical generating capacity 5,500 kilowatts) in question, to its current performance standards for a cost of $274,925, towards which Colt will contribute $125,000, leaving a not cost to the City of $149,925. Colt has agreed to perform additional work, as requested by the City, for $37,775. The City will also incur an approxi-mate $102,000 in engineering costs and expenses for removal and re-installation. The total cost to the City will be $289,700. Smith &

Gillespie have contributed $63,000 in cash as their share of the settle-ment, leaving the net total cost to the City as approximately $226,700.

Value of the re-manufactured engines will be approximately $1.25 million.

Receipt of the $63,000 has been reflected as an Extraordinary Income item in the Statement of Revenue, Expenses and Changes in Fund Balance for the Electric Fund.

The two diesel engines (Numbers 12 and 13) were installed by Colt on January,1969 after being recommended by Smith & Gillespie to the City. Since 1970, the city experienced significant problems with the operation and performance of the engines, including excessive vibration, failure to operate continuously, excessive repairs and downtime and fires. During this subsequent time, assurances were received from both~

Colt and Smith & Gillespie that these problems would be corrected. On November 5, 1975, electrical consulting engineers, Reynolds, Smith &

Hills, were engaged to perform a preliminary investigation of these two engines. From their report of June 1,1976, the following conclusions were made:

(a) Colt had negligently designed, manufactured, assembled, constructed, tested and installed the engines and they were not fit for the intended purpose; (b) Colt and Smith & Gillespie had breached their duties to the City; (c) Colt and Smith & Gillespie conspired to have Colt awarded the engine bid and have the bid accepted, even though its proposal and engines furnished were not in compliance with the specifications; (d) Colt and Smith & Gillespie had fraudulently concealed these facts from the city.

As a result of this report, a lawsuit was filed in the Circuit Court on February 22, 1977, alleging eleven counts of wrongful acts against both Colt and Smith & Gillespie with claims totaling in excess of one million dollars.

l [ nd

City of Kissimmee, Florida NOTES TO FIFANCIAL STATEMENTS September 30, 1978 NOTE E - PENSION FUNDS GENERAL EMPIDYEE'S PENSION FUND An actuarial study done as of Janua*.y 1, 1978, reflected a net actuarial deficiency of $1,477,889, which is being funded over 30 years.

Present value of the actuarially computed vested benefits exceeded the pension fund assets by $312,517 at January 1, 1978. Total pension expenditure for the year was $252,459, which includes both normal cost and amortization of the actuarial deficiency.

MUNICIPAL POLICE OFFICER'S RETIREMENT FUND An actuarial study done as of January 1, 1978, reflected a net actuarial deficiency of $220,183, which is being funded over 40 years.

Pension fund assets exceeded the present value of the actuarially computed vested benefits by $196,390 at January 1,1978. Total pension expenditure for the year was $63,229, which includes both normal cost and amortization of the actuarial deficiency.

MUNICIPAL FIREMEN'S PENSION TRUST FUND An actuarial study done as of January 1,1978, reflected a net actuarial deficiency of $138,359, which is being funded over 40 years.

Pension fund assets exceeded the present value of the actuarially computed vested benefits by $72,401 at January 1, 1978. Total pension expenditure for the year was $37,316, which includes both normal cost and amortization of the actuarial deficiency.

NOTE F - CONTINGENT LIABILITIES The City is contingently liable for accumulated and unpaid vacation leave and sick leave. Current policy allows each employee to accumulate up to 20 days of vacation leave. Time accrued beyond that is forfeited.

Majority of employees utilize their annual accrual of vacation leave during the year accrued. Employees are allowed to accumulate up to 60 days of sick leave. Time accrued beyond that is paid to the employees every year at the rate of one-half pay. Approximately 14% of employees are currently at the accumulated 60 day limit. It is the opinion of management that the accumulated leaves at September 30, 1978, are not material and have not been reflected as an expenditure during the year.

NOTE G - SUBSEQUENT EVENTS On December 18, 1978, the City issued $171,000 of limited obliga-tion bonds for a special tax district for purposes of improvement in the downtown area. These bonds are secured by the pledge of the 5 mill tax from the district. Interest rates range from 5.25 to 6.0 over the 15 year maturity.

City of Kissimmee, Florida NOTES 'IO FINANCIAL STATEMENTS September 30, 1978 NOTE H - BOND SERVICE REQUIREMENTS TO BE PAID BY ENTERPRISE FUNDS Electric Water and Airport Payable in Revenue Bonds Sewer Revenues Revenue Bonds FY 1977 __

Bonds 1977 1971 1978/79 $ 1,168,708.88 $ 356,094.37 $ 29,047.50 1979/80 1,166,071.38 360,571.26 28,397.50 1980/81 1,166,299.50 354,391.26 27,772.50 1981/82 1,156,734.13 362,324.63 27,185.00 1982/83 1,150,212.50 364,725.13 31,466.25 1983/84 1,147,950.01 362,253.75 30,603.75 1984/85 1,149,125.00 359,591.25 29,741,25 1985/86 1,148,203.13 361,319.38 28,878.75 1986/87 1,145,565.63 362,285.00 28,016.25 1987/88 1,152,368.76 358,023.13 32,010.00 1988/89 1,160,643.76 361,222.50 30,860.00 1989/90 1,168,581.26 359,397.50 29,695.00 1990/91 1,164,698.76 357,057.50 28,515.00 1991/92 1,164,321.26 359,317.50 32,187.50 1992/93 1,167,018.76 356,037.50 30,700.00 1993/94 1,162,817.51 357,263.75 29,200.00 1994/95 1,167,016.26 357,877.50 32,550.00 1995/96 1,164,055.01 357,868.75 30,825.00 1996/97 1,164,033.76 357,227.50 1997/98 1,161,921.26 355,943.75 1998/99 1,162,408.76 358,870.00 1999/2000 1,164,458.76 360,732.50 2000/01 1,163,431.26 356,625.00 2001/02 1,164,838.76 361,805.00 2002/03 1,094,393.76 336,272.50 2003/04 1,089,233.76 340,882.50 2004/05 1,091,223.76 334,495.30 2005/06 1,090,221.26' 337,395.00 2006/07 1,090,941.26 339,155.00 2007/08 544,671.88 169,881.25 Totals ,$,3135L 169. 74 _$10,476.906.96_ .$.537.651.25 ENTERPRISE FUNDS Enterprise Funds are to account for operations (a) that are financed and operated in a manner similar to private business enterprises--where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination or revenues  ;

earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes.

I i

i 6

e

City of Kissimmee, Florida COMBINING BALANCE SHEET - ENTERPRISE FUNDS September 30, 1978

[

Electric Water And Total ASSETS Utilities Sewer Airport Enterprise Fund Fund Fund Funds CURRENT ASSETS Cash $ 41,004 $ 30,221 $ (24,168) $ 47,057 Cash with Fiscal Agent 60,690 - - 60,690 Investments (Note A) 326,325 - - 326,325 Accrued Interest Receivable 26,250 5,810 - 32,060 Accounts Receivable 1,251,476 17,961 4,986 1,274,423 Less Allowance for Doubtful Accounts , (32,691) - -

(32,691).

Due from Other Governments ...- 111,671 3,150 114,821 ,

Inventory (Note A) 534,811 39,993 .__574,804 3 I

Prepaid Expenses 34,269 5,911 2,296 42,476' l Total Current Assets 2,242,134 211,567 (13,736) 2,439,965 RESTRICTED ASSETS Revenue Bond Debt Service Cash 2,165 2,913 - 5,078 Revenue Bond Amortization Investments (Note A) 605,426 158,799 - 764,225 Interest Receivable 68,965 1,525 - 70,490 Revenue Bond Reserve Cash 1,513 3,102 582 5,197 Investments (Note A) 1,180,079 369,346 35,759 1,585,184 Interest Receivable - -

670 670 Revenue Bond Contingency Cash 6,779 5,000 - 11,779 Investments (Note A) 693,221 370,000 - 1,063,221 Revenue Bond Construction Cash 69,519 129,522 - 199,041 Investment . (Note A) 4,339,625 1,223,994 100,493 5,664,112 Interest Receivable 38,137 8,895 365 47,397 Customer Deposits Cash 14,184 - -

14,184 Investments (Note A) 576,698 - - 576,698 Interest Receivable 3,513 - - 3,513 Total Restricted Assets 7,599,824 2,273,096 137,869 10,010,789 UTILITY PLANT IN SERVICE Property, Plant, Equipment (Note A) 21,194,796 6,691,172 803,623 28,689,591 Less Accumulated Depreciation (6,573,791) (1,264,316) (349,698) (8,187,805)

Construction in Progress 997,893 12,239 1,675 1,011,807 Inventory-Nuclear Fuel (Not)-

(Note A) 168,462 - - 168,462 Total Utility Plant In Service 15,787,360 5,439,095 455,600 21,682,055 OTHER ASSETS Bond Issue-Costs (Net) (Note A) 647,762 189,728 8,691 846,181 Master Plan Costs (Net) - - 47,802 47,802 Total Other Assets 647,762 189,728 56,493 893,983

'IOTAL ASSETS $26,277,080_ j_8,_ll3,486 J 63_6_,2_26_ _$35,026,792 l

The accompanying notes are an integral part of this statement.

t - . . , . - ,

Electric Water And Total LIABILITIES Utilities Sewer Airport Enterprise Fund Fund Fund Funds CURRENT LIABILITIES Accounts Payable $ 496,769 $ 16,360 $ 5,087 $ 518,216 Taxes Payable 67,678 1,997 897. 70,572 Accrued Salaries 32,044 11,260 849 44,153 Extension Deposits Payable (Note A) 89,975 1,270 - 91,245 Total Current Liabilities 686,466 30,887 6,833 724,186 CURRENT RESTRICTED LIABILITIES Accrued Interest on Deposits 37,797 - - 37,797 Retainage Payable 60,299 - - 60,299 Customer Deposits 552,130 - - 552,130 Revenue Bonds Payable - -

10,000 10,000 Accrued Interest on Bonds - - 6,458 6,458

'Ibtal Current Restricted Liabilities 650,226 - 16,458 666,684 REVENUE BONDS PAYABLE Revenue Bonds Payable 18,400,000 5,525,000 320,000 24,245,000 Less Unamortized Bond Discount (Note A) (355,733) (106,817) (2,577) (465,127)

Total Revenue Bonds Payable 18,044,267 5,418,183 317,423 23,779,873 TOTAL LIABILITIES 19,380,959 5,449,070 340,714 25,170,743 MUNICIPAL EQUITY Contributed Capital:

Contributed by Governments -

327,000 450,616 777,616 Contributed by Private Sources ,

375,753 -

375,753 Contributed by Other Funds -

626,245 114,356 740,601

'Ibtal Contributed Capital -

1,328,998 564,972 1,893,970 Retained Earnings:

Reserved for:

Bond Debt Service 2,165 2,913 -

5,078 Bond Retirement 1,181,592 372,448 37,011 1,591,051 Bond Contingency 700,000 375,000 - 1,075,000

'Ibtal Reserved 1,883,757 750,361 37,011 2,671,129 Unreserved (Deficit) 5,012,364 585,057 (306,471) 5,290,950

'Ibtal Retained Earnings (Deficit) 6,896,121 1,335,418 (269,460) 7,962,079

'IOTAL MUNICIPAL EQUITY 6,896,121 2,664,416 295,512 9,856,049

'IOTAL LIABILITIES AND MUNICIPAL EQUITY $26,277,080 $ 8,113,486 S 636,2_26_ g 026,792

City of Kissimmee, Florida COMBINING STATEMENT OF OPERATIONS AND CHANGES IN RETAINED EARNINGS ENTERPRISE FUNDS For the Fiscal Year Ended September 30, 1978 Electric Water And Utilities Sewer Airport Fund Fund Fund Total OPERATING REVENUES:

~

Charges for services $9,055,288 $1,434,179 $ 57,896 S10,547,363 OPERATING EXPENSES:

Operation and maintenance 6,828,890 806,693 65,668 7,701,251 Depreciation 687,140 100,118 68,459 855,717 Total Operating Expenses 7,516,030 906,811 134,127 8,556,968 Operating Income (Loss) 1,539,258 527,368 (76,231) 1,990,395 NON-OPERATING REVENUES (EXPENSES):

Interest revenue 711,441 143,981 8,901 864,323 Interest / amortization expense (961,448) (266,445) (20,119) (1,248,012)

Extraordinary income (Notes B,C,D) 226,178 144,001 -

370,179 Extraordinary expense (Ncte B) (575,762) - -

(575,762)

Total Non-Operating Revenues (Expenses) (599,591) 21,537 (11,218) (589,272)

Income (Loss) Before Operating Transfers 939,667 548,905 (87,449) 1,401,123 OPERATING TRANSFERS:

Operating transfers in -

39,882 29,697 E9,579 Operating transfers out (800,000) - -

(800,000)

Total Operating Transfers (800,000) 39,882 29,697 (730,421)

Not Income 139,667 588,787 (57,752) 670,702 RETAINED EARNINGS - OCTOBER 1, 1977 7,430,700 72,385 (211,708) 7,291,377 Adjustments to Retained Earnings:

Transfer of equity - result of reorganization of fund structure-In (out) (Note B) (674,246) 674,246 -

RETAINED EARNINGS -

SEPTEMBER 30, 1978 $6,896,121 _$1,335,418 $ (269,460) $ 7,962,079 The accompanying notes are an integral part of this statement.

City of Kissimmee, Florida COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION - ENTERPRISE FUNDS For the Fiscal Year Ended September 30, 1978 Electric Water And Utilities Sewer Airport Fund Fund Fund Total SOURCES OF WORKING CAPITAL:

Operations:

Net income (loss) before extraordinary items $ 139,667 $ 588,787 $ (57,752) $ 670,702 Items not (providing) requiring working capital:

Depreciation / amortization 764,871 110,591 69,096 944,558' Loss (gain) on bond refunding 575,762 (144,001) - 431,761 Working capital provided by operations 1,480,300 555,377 11,344 2,047,021 Proceeds from sale of bonds 18,032,000 5,414,500 -

23,446,500 Contributions -

1,521 10,800 12,321 Reorganization of Water and Sewer Utilities Fund (Net) - 492,531 - 492,531 Total Sources of Working Capital 19,512,300 6,463,929 22,144 25,998,373 USES OF WORKING CAPITAL: r Acquisition of fixed assets 1,336,758 772,955 30,060 2,139,773 Retirement of long term debt 15,907,750 3,132,250 10,000 19,050,000 Payment of bond costs 670,099 196,271 - 866,370 Reorganization of Water and Sewer Utilities Fund 550,765 - -

550,765 Total Uses of Working Capital 18,465,372 4,101,476 40,060 22,606,908 Net Increase (Decrease) in Working Capital j_l,046,928 12,362,453 $ (17,916) $ 3,391,465 ELEMENTS OF NET INCREASE (DECREASE)

IN WORKING CAPITAL Cash $ (76,476) $ 101,186 $ (12,166) $ 12,544 Investments 402,387 1,972,704 (4,765) 2,370,326 Accounts receivable 354,620 123,847 922 479,389 Inventory 36,792 33,732 -

70,524 ,

Prepaid expenses 10,364 1,289 749 12,402 Interest receivable 73,523 16,230 1,035 90,788 Accounts payable (177,600) (15,466) (3,425) (196,491)

Tax liabilities (11,779) (712) (494) (12,985)

Salaries payable 2,078 (4,237) 12 (2,147)

Deposits payable (85,658) (1,270) -

(86,928)

Revenue bonds payable 205,000 47,000 -

252,000 Interest payable 313,677 30,955 216 344,848 Due to other funds - 57,195 - 57,195 Net Increase (Decrease) in Working Capital $ 1,046,928 j_2,362,453 J (17,916) $ 3,391,465 The accompanying notes are an integral part of this statement.

- City of Kissimmee, Florida ELECTRIC UTILITY FUND STATEMENT OF REVENUE AND EXPENSE - BUDGETED AND ACTUAL For the Fiscal Year Ended September 30, 1978 Actual Budget Over(Under)

(Revised) Actual Budget OPERATING REVENUES:

Metered electric sales $9,034,000 $8,583,985 $ (450,015)

Public street and highway lighting 46,000 48,402 2,402 Inter-departmental sales 192,600 201,021 8,421 Sales to other cities 125,000 91,117 (33,883)

Other electric revenues 54,500 130,763 76,263 Total Operating Revenues 9,452,100 9,055,288 (396,812)

OPERATING EXPENSES:

Operations 5,956,056 6,828,890 872,834 Depreciation (Note A) 600,000 687,140 87,140 Total Operating Expenses 6,556,056 7,516,030 959,974 Operating Income 2,896,044 1,539,258 (1,356,786)

NON-OPERATING REVENUES (EXPENSES)

Interest revenue 100,000 711,441 611,441 Interest / amortization expense (1,498,270) (961,448) 536,822 Extraordinary income (Note C,D) 5,700 226,178 220,478 Extraordinary expense (Note B) (575,762) (575,762)

Total Non-Operating Revenues (Expenses) (1,392,570) (599,591)- '792,979' Income Before Operating Transfers _1,503,474 939,667 (563,807)

OPERATING TRANSFERS:

Operating transfer to General Fund (800,000) (800,000) NET INCOME $ 703,474 $ 139,667 $ (563,807) i i

l l

The accompanying notes are an integral part of this statement.

City of Kissimmee, Florida ELECTRIC UTILITY FUND SCHEDULE OF OPERATING EXPENSES - BUDGETED AND ACTUAL For the Fiscal Year Ended September 30, 1978 Actual Budget Over (Under)

Electric Operating Expenses (Revised) Actual Budget NUCLEAR POWER GENERATION Operation Supervision and engineering $ 7,500 $ 12,658 $ 5,158 Nuclear fuel 85,500 40,979 (44,521)

Coolants and water 3,000 669 (2,331)

Steam 9,000 12,319- 3,319 Steam from other sources -

578 578 Electric 5,000 3,948 (1,052)

Miscellaneous nuclear power 17,000 25,342 8,342 Rents 7,200 7,274 74 Maintenance Supervision and engineering 5,800 7,978 2,178 Structures 1,000 4,106 3,106 Reactor plant equipment 3,000 16,943 13,943 Electric plant 3,500 13,507 10,007 Miscellaneous nuclear plant 1,000 5,411 4,411 Total Nuclear Generation 148,500 151,712 3,212 OTHER POWER GENERATION Operation Supervision and engineering 11,605 12,653 1,048 Fuel - diesel 1,080,000 529,504 (550,496)

Fuel - natural gas 80,000 964,216 884,216 Generation 151,392 322,165 170,773 Miscellaneous other power generation 20,232 19,510 (722)

Maintenance Supervision and engineering 20,839 17,478 (3,361)

Structures 65,167 41,499 (23,668)

Generating and electric plant 256,107 347,908 91,801 Total Other Power Generation 1,685,342 2,254,933 569,591 OTHER POWER SUPPLY Purchased power 2,402,100 2,907,283 505,183 l System control and load dispatching 1,500 1,453 (47)

Total Other Power Supply 2,403,600 '2,908,736 505,136 City of Kissimmee, Florida ELECTRIC UTILITY FUND SCHEDULE OF OPERATING EXPENSES - BUDGETED AND ACTUAL (Continued)

For the Fiscal Year Ended September 30, 1978 Actual Budget' Over(Under)

Electric Operating Expenses (Revised) Actual Budget TRANSMISSION Operation Transmission of electricity by others S $ 51,482 $ 51,482 Rents 700 198 (502)

Maintenance Station equipment 20,543 49,423 28,880 i Total Transmission 21,243 101,103 79,860 DISTRIBtTTION Operation Supervision and engineering 5,693 8,453 2,760 Overhead line 17,639 13,437 (4,202)

Underground line 9,611 8,485 (1,126)

Street lighting 99,006 57,896 (41,110)

Meter 49,472 48,017 (1,455)

Customer installation 4,765 4,765 Miscellaneous distribution 26,212 23,967 (2,245)

Rent 700 (700)

Maintenance Supervision and engineering 7,260 8,262 1,002 Overhead line 217,129 .167,279 (49,850)

Underground line 42,558 13,668 (28,890) -

Total Distribution 480,045 354,229 (125,816)

CUS'IOMER ACCOUNTS Operation Supervision 16,000 14,330 (1,670)

Meter reading 41,196 39,794 (1,402)

Customer records and collections 81,283 63,612 (17,671)

Uncollectible accounts 31,071 31,071 Total Customer Accounts 138,479 148,807 10,328 SALES Advertising 1,750 433 (1,317)

Tctal Sales 1,750 433 (1,317)

City of Kissimmee, Florida ELECTRIC UTILITY FUND SCHEDULE OF OPERATING EXPENSES - BUDGETED AND ACTUAL (Continued)

For the Fiscal Year Ended September 30, 1978 Actual Budget Over(Under)

Electric Operating Expenses (Revised) Actual Budget ADMINISTRATIVE AND GENERAL Administrative and general salaries $ 51,497 $ 51,688 $ 191 office supplies and expenses 13,350 13,358 8 Outside services employees 306,469 315,040 8,571 Property insurance 50,766 48,819 (1,947)

Injuries and damages 26,460 ~27,318 858 Employee pensions and benefits 200,083 158,479 (41,604)

Regulatory commission 2,400 1,371 (1,029)

Miscellaneous' general 2,000 2,494 494 Rents 1,000 484 (516)

Adjustments and contingencies 66,372 94,758 28,386 Taxes otLer than income 184,200 174,345 (9,855)

Interest on customer service deposits 50,000 15,516 (34,484)

Non-recurring expenditures 122,500 5,267 (117,233)

Total Administrative and General 1,077,097 908,937 (168,160)

'IOTAL ELECTRIC CPERATING EXPENSES J5,956,056 $6,828 3 $ 872,834

l 1

City of Kissimmee, Florida ELECTRIC UTILITY FUND SCHEDULE OF FIXED ASSETS AND DEPRECIATION For the Fiscal Year Ended September 30, 1978 ASSETS Balance Adjustments Additions Balance October 1, & Reclassi- And September 30,.

1977 fications Deletions 1978 ELECTRIC PROPERTIES:

Nuclear Production S 2,963,322 $ (24,004) $ - $ 2,939,318 other Production 7,047,579 - - 7,047,579 Transmission Plant 1,083,978 - - 1,083,978 Distribution Plant 8,457,360 - 449,184 8,906,544 General 590,038 -

17,599 607,637 Plant Held For Futurc Use 609,740 - - 609,740

_$20,752,017 $ (24,004) $466,783 $21,194,796 w

j . ._

l ACCUMULATED DEPRECIATION ,

Balance Adjustments Balance Net October 1, & Reclassi- September 30, Asset 1978 fications Depreciation 1978 Rate ,

, Value J

$ $ (720) $ 88,895 31 $ 88,175 $ 2,851,143 2,312,789 -

208,937 3s 2,521,726 4,525,853 160,627 -

26,769 2-2.9% 187,396 896,582 3,161,059 -

328,432 2.5-4% 3,489,491 5,417,053 r

217,799 -

29,564 3-10% 247,363 360,274 34,377 -

5,263 24 39,640 570,100 151 886,651 ,$_(720) $687,860 $6,573,791 $14,621,005 t

a I

l

City of Kissimmes, Florida -

COMBINED SCHEDULE OF BONDS PAYABLE - ALL SERIES September 30, 1978 Amount of Balance original Sept. 30, Description Issue 1977 ELECTRIC AND WATER REVENUE CERTIFICATES:

1963 Electric and Water Refunding Improvement Revenue Certificates, 3.5% - 3.8% interest rates, payable in annual installments of $110,000 To $240,000 maturing in 1993 $ 4,475,000 $ 3,085,000 1967 Electric and Water Improvement Revenue Cerfificates, 4% - 5% interest rates, payable in annual installments of

$30,000 to $355,000 maturing in 1995 1,770,000 1,560,000 1970 Electric and Water Improvement Revenue Certificates, 6% - 6.6% interest rates, payable in annual installments of

$10,000 to $535,000 maturing in 2001 3,500,000 3,410,000 1971 Electric and Water Improvement Revenue Certificates, 5.6% - 5.65% interest rates, payable in annual installments of

$90,000 to $600,000 maturing in 2003 850,000 850,000 1971-A Electric and Water Improvement Revenue Certificates, 5.5% - 6.5% ir.terest rates, payable in annual installments of

$10,000 to $60,000 maturing in 1997 750,000 700,000 1973 Electric and Water Improvement Revenue Refunding Certificates 5.5% interest rates, payable in annual installments of

$50,000 to $550,000 maturing in 2000 3,445,000 3,445,000 1975 Electric and Water Improvement Revenue Certificates, 6.0% - 6.75% interest rates, payable in annual installments of

$50,000 to $770,000 maturing in 2003 3,900,000 3,900,000, TOTAL ELECTRIC AND WATER REVENUE CERTIFICATES 16,950,000 ELECTRIC REVENUE BONDS:

1977 Electric Revenue Bonds, Series A 4.8% - 5.5% interest rates, payable in annual Installments of $215 - $370,000 maturing in 1998 18,400,000 TOTAL ELECTRIC REVENUE BONDS $ .~ -

Refunded /

I Iss ed Retired Balance

! Duri g During Sept. 30, Due Within Due After FY 77/ 9, FY 77/78 1978 One Yr.ar One Year i

l i

$ 3,085,000 $ $ -

1,560,000 - -

3,410,000 - -

850,000 - -

700,000 - -

3,445,000 - -

3,900,000 - -

16,950,000 - -

18,400,000 18,400,000 18,400,000

$18,400,000 ~$ -0 ,

$18,400,000 $ $18,400,000

City of Kissimmee, Florida ,

' ~

COMBINED SCHEDULE OF BONDS PAYABLE - ALL SERIES (Continued)

September- 30, 1978

• Amount of Balance original Sept. 30, Description Issue 1977 SEWER REVENUE CERTIFICATES AND BOND LC.W PAYABLE:

. 1954 Sewer Utility Revenue Certificates 3.0% - 3.1% interest rates, payable ,

2 in annual installments of $22,000 to

$29,000 maturing in 1985 $ 525,000 $ 232,000 ,

i 1965 Sewer Utility Revenue Certificates 3.8%,- 4.0% interest rates, payable in' annual, installments of $10,000 to 700,000 620,000

$55,000 maturing in 1996 1977 State of Florida, Pollution Control Bonds, Series F, $60,000,000 5.4% - 5.6% '

interest rates, payable in annual installments maturing in 2009 - City of Kissimmee bond loan payable for partial share at same rates $15,000 1,490,000 to $105,000 in annual installments 1,490,000 2,342,000

'IOTAL SEWER REVENUE CERTIFICATES WATER AND SEWER REVENUE BONDS:

1977 Water and Sewer Revenue Bonds, Series A 4.8% - 5.5% interest rates, payable in annual '

installments of $65 - $115,000 maturing in 1998 5,525,000 ~

TOTAL WATER AND SEWER REVENUE BONDS s

AIRPORT REVENUE BONDS:

1971 Airport Revenue Bonds, 5.5% - 6.5% interest

• rates, Payable in annual installments of $10,000 340,000 to $30,000 maturing in 1995 350,000 340,000

'IOTAL AIRPORT REVENUE BONDS _

19,632,000 COMBINED 'IOTALS l

l l

Refunded /

Issued Retired Balance During During Sept. 30, Due Within Due After ,

FY 77/78 FY 77/78 1978 One Year One Year S

$ 232,000 $ $ -

- 620,000 - -

- 1,490,000 - -

2,342,000 .- -

5,525,000 5,525,000 5,525,000 ,

5,525,000 5,525,000 5,525,000 i.

10,000 330,000 10,000 320,000 10,000 330,000 10,000 320,000_ l 21,925,00q E1Q2Aaq 24,255,00Q 10.000 24,245,000

- ..