ML20108C734
| ML20108C734 | |
| Person / Time | |
|---|---|
| Site: | Crystal River  |
| Issue date: | 09/30/1995 |
| From: | Martin J AFFILIATION NOT ASSIGNED |
| To: | |
| Shared Package | |
| ML20108C682 | List: |
| References | |
| NUDOCS 9605070118 | |
| Download: ML20108C734 (67) | |
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ilj Utilities Commission, lI .
City of New Smyrna Beach, Florida
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, Comprehensive Annual Financial Report
} (A Component Unit of the City of New Smyrna Beach, Florida) (
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- September 30,1995 and1994
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l Utilities Commission, l City of New Smyrna Beach, Florida l (A Component Unit of the City of New smyrna Beach, Florida)
Comprehensive Annual Financial Report For the Fiscal Year Ended September 30,1995 and 1994 UTILITIES COMMISSIONERS James U. Martin, Chairman Carolyn F. Bosiger, Vice Chairman Raymond E. Custer, Secretary-Treasurer Peter E. Mallory, Assistant Secretary-Treasurer James A. Pence, Commissioner l
ACTING DIRECTOR OF UTILITIES Walter C. Davis 1
CONTROLLER Charles S. Mitchell, CPA LEGAL COUNSEL INDEPENDENT AUDITORS Bolt, Spence & Hall, P.A. Brent Millikan & Company, P.A.
TABLE OF CONTENTS COMPREHENSIVE ANNUAL FINANCIAL REPORT 4..h 30,1995 and 1994 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FLORIDA Reference Eggga Introductor Tide Page . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...................... . . . . . .y Section Organization Cnart ................. I
................................. iii Certificate of Achievement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv letter of Transmittal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v-x Financial Section Independent Auditors' Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... 1 Financial Statements:
Comparative Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Statement 1 2-3 Statements of Revenue, Expenses, and Changes in Retamed Earmn Statement 2
............. 4 Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . .gs ............... Statement 3 5 Notes to the Financial Statements . . . . . . . . . . . . . . . . ..................... 6-16 Supplemental Detail Information of the Utility Systems:
Schedule of Revenue, Expenses and Changes in Retained Earnings . . . . . . . . . . . ... Schedule 1 17 Schedule of Revenue, Receipts, Expenses and Disbursements - Budget and Actual- Electric System (Non-GAAP Budgetary Basis) . . . . . . . . . . . . . . . . . . . Schedule 2 18 Schedule of Revenue, Receipts, Expenses and Disbursements - Budget and Actual - Water System (Non-GAAP Budgetary Basis) . . . . . . . . . . . . . . . . . . . . Schedule 3 19 Schedule of Revenue, Receipts, Expenses and Disbursements - Budget and Actual- Pollution Control System (Non-GAAP Budgetary Basis) ............ Schedule 4 20 Schedule of Revenue, Receipts, Expenses and Disbursements - Budget and Actual - Water Reuse System (Non-GAAP Budgetary Basis) ............... Schedule 5 21 Schedule of Operating Expenses - Electric System . . . . . . . . . . . . . . . . . . . . . . . . . . Schedule 6 22 Schedule of Operating Expenses - Water System . . . . . . . . . . . . . . . . . . . . . . . . . . . . Schedule 7 23 Schedule of Operating Expenses - Pollution Control System . . . . . . . . . . . . . . . . . . . . Schedule 8 24 Schedule of Operating Expenses - Water Reuse System . . . . . . . . . . . . . . . . . . . . . . . Schedule 9 25 Schedule ofInterest Earnings
........................................ Schedule 10 26 Schedule of Debt Service Requirements to Maturity . . . . . . . . . . . . . . . . . . . . . . . . . Schedule 11 27-29 Statistical Section Schedule of Expenses by Function - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . Tabic ! 30-31 Schedule of Revenues by Source - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . Table 11 32-33 Demographic Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Table til 34 Property Value, Construction, and Bank Deposits - Last Ten Fiscal Years ........ Table IV 35 Schedule of Insurance in Force . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...... ....... Table V 36 Ten Largest Electric Customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Table VI 37 Ten Largest Water Customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Table VII 38 Schedule of Revenue Certificate Coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Table Vill 39 Supplemental Audit Reports Independent Auditors' Report on Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Independent Auditors' Report on laternal Control Structure . . . . . . . . . . . . . . . . . . . . . . . .
41-42 M anagement Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43-46 ii y 44 +
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1 ORGANIZATION CHART l I
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ORGANIZATION CHART l UTILITIES COMMISSION, CITY OF NEW SMYkNA BEACH, FLORIDA NEW SMYIG A BEACH. FLORIDA I
Utilities Commissioners Professional Director Commission Consultants of Utilities Attorney Electric Finance Depaitment Department I
i Water, Engmeenng Pollution Control, Department Water Reuse Department
.... Denotes appointment autitority l
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l CERTIFICATE OF ACHIEVEMENT For the year ended September 30,1994 i
l The Government Finance Ofcers Association ofthe United States and Canada (GFOA) awarded a Ceni)icate of Achievementfor Excellence in Financial Reponing to the Utilities Conunission, City of New Smyrna Beach, Florida, for its Component Unit Financial Reportfor thejscal year ended September 30,1994.
In order to be awarded a Cemfcate of Achievement, a governmental unit must publish an easily readable and efciently organized comprehensive annualfnancial report, whose contents confonn to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements.
A Cemfcare ofAchievement is validfor a period ofone year only.
Management believes that this repon continues to conform to i Cernfcase ofAchievement Progmm standards.
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i CERTIFICATE OF ACillEVEMENT 2 For the Year Ended September 30,1994 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACll, FLORIDA NEW SMYRNA BEACil, FLORIDA 1 i
Certificate cd l Acaievement l dor Exce: ence i
In Financia i Reporting l Presented to l Utilities Commission, City of New Smyrna Beach, Florida
- sr its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30,1994 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Govemment Finance Officers Association of the United States and Canada to govemment units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in govemment accounting and financial reporting.
m ,l President 1
smExecutive Director l
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UTILITIES COMMISSION
- CITY OF NEW SMYRNA BEACH FLORIDA ,
ELECTRIC, WATER. POLLUTION CONTR9L Post Office Boa 100 200 Canal St.
New Smyrna Beach, Florida 32170-01C 4 (904) 427 1361 3 November 10,1995 To the Chairman and Members of the Utilities Commission City of New Smyrna Beach, Florida b Comprehensive Annual Financial Report of the Utilities Commission, City of New Smyrna Beach, Florida, for the fiscal years ended September 30,1995 and 1994, is hereby submitted. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the Utilities Commission. To the best of our knowledge and belief, the enclosed data are accurate in all material aspects and are reported in a manner designed to present fairly the fmancial position and results of operations of the Utilities Commission.
All disclosures necessary to enable the reader to gain the maximum understanding of the Utilities Commission's Purncial affairs have been included.
' Ibis financial report is presented in four sections: introductory, financial, statistical, and compliance (Auditor General of the State of Florida). L introductory section includes this transmittal letter, the Utilities Commission's organization chart, a list of principal officials, the table of contents and a reproduction of the Certificate of Achievement for Excellence in Financial Reponing for 1994. The fmancial section includes the basic fmancial statements and the independent auditors' report on the financial statements. The statistical section includes selected financial and demographic information, generally presented on a multi-year basis, and selected ten-year historical fmancial m' formation.
h Utilities Commission is required to be audited in accordance with Chapter 10-500, Rules of the Auditor General of the State ofFlorida. Information related to this audit, fmdings and recommendations, and auditors' reports on the internal control structure and com;liance with applicable laws and regulations, are included in the compliance section of this report.
REPORTING ENTITY AND SERVICES PROVIDED h funds and entities related to the operation of the Utilities Commission which are included in these financial statements are a mmmewd unit of the City of New Smyma Beach, Florida, and an integral part of the City's reporting entity. The Comprehensive Annual Financial Report of the Utilities Commission is issued separately to provide a comprehensive financial reponing summary and presentation to the Utilities Commission and its revenue certificate holders.
Audited financial statemmes of the Commission's oversight unit (City of New Smyrna Beach, Florida), are available upon request from the City of New Smyrna Beach,210 Sams Avenue, New Smyrna Beach, Florida,32168.
h Utilities Commission, City of New Smyma Beach, Florida, piovides a full range of electric, water, pollution control and water truse se: vices to its customers both inside and outside the city limits. These activities are fully accounted for in this fmancial report.
ECONOMIC CONDITION AND OUTLOOK
& economic condition and outlook of the Utilities Conunission have continually improved during the past several years due in large part to the controlled development of residential and commercial properties which in turn has increased the Commission's quality customer base. In addition, substantial increases in the local tourism, light manufacturing, and service related business industries have had a positive effect on the area's employment statistics.
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To the Chainnan and Members of the Utilities Commission i i
City of New Smyrna Beach, Florida i November 10,1995 '
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MAJOR INITIATIVES i i
& Commission has established a CaptalImprovements Plan (Plan) through 1999. b capital expenditures of this Plan t are scharkitari to be funded through a e-- ' * : of connectum fees, Renewal and Replacement Fund proceeds, a podion of the proceeds of mvenue certificates issued in August,1992, and other funding. These capital improvement plans are !
- in =<lreann to the annual capital requirements for routine extensions of existing utility facilities to serve new customers. .
l Significant system improvements contemplated in the Plan consist of the following:
e Voltage conversion fem 4 kV to 23 kV of the Commission's 4 kV electric system in the mainland downtown area; I
o Western area expansion of the water system plant in the Interstate 95-State Road 44 area; i
e . Constmetion of a western 6 MGD pollution control facility; !
Expansion of force mains and lift stations to link with the western pollution control facility; Development and construction of additions to the water reuse system which consists of high service pumpmg facilities, extension of the transmission system to connect to the western pollution control facility, and !
transmission lines to provide irrigation service to prospective customers; and !
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- Major storage facilities for the water reuse system are under investigation for storage of recla*uned water in a
. joint project between the Commission and the St. Johns River Water Management District.
t Commission forecasts for the electric, water, pollution control, and water reuse systems indicate that the existing major
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facilities are adequate to accommodate the expected growth during the five year period of the Plan.
FINANCIALINFORMATION !
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Management of the Caminission is responsible for establishing and maintaining an internal control structure designed to ,
ensure that the assets of the Commission are protected from loss, theft or misuse and to ensure that adequate accounting l data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting '
principles. b internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met, b concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the j benents likely to be derived; and (2) the v=hwma of costs and benefits requires estimates and judgements by management.
[ I Budgeting Controls
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'Ibe Utilities Commission snawams an integrated system of budgetary contmls b objective of these budgetary controls is to ensure compliance with legal provisions embodied in the approved annual budget. The operating activities of the j electric, water, pollution control and water reuse systems are included in the annual budget. b level of budgetary ;
contml (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established by function j and activity within each individual operating system. W Commission also rnairemins a separate encumbrance accounting i system as one technique of accomplishing budgetary control. This system is used exclusively to maintain budgetary control and is not utilized for purposes of presenting financial statenwnts prepared in accordance with generally accepted accounting principles.
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To the Chairman and Members '
t of the Utilities Commission City of New Smyrna Beach, Florida November 10,1995 i
Page 3 As is demonstrated by the fmancial statements and schedules in the fmancial section of this report, the Utilities Commission continues to meet its responsibility for sound fmancial management.
L Utility Operation,r i
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' -- whh Resolution No.16-75, the electric, water and pollution control systems are accounted for as a single l
enterprise fund. As of September 30,1995, the Utilities Commission served 20,055 electric customers,16,148 water ,
customers and 13,762 pollution control customers. Service totals for the last five years are summarized below:
! l Pollution i Fiscal Electric Water Control ygat Accrume=
Accounts Accounta l
- 1991 ................................ 18,835 9,865 7,754 l 1992 ................................ 19,264 l' 10,100 7,875
! 1993 ................................ 19,5 % 10,378 8,051 l 1994 ................................ 19,907 10,618 8,188 l 1995 ................................ 20,055 16,148 13,762 h increase in customers for 1995 was the reeuk of a change in the method of billing water and pollution control services f:r muki-family customers, which were previously billed as a single utility customer.
b current year's operating revenues from the combined utilities systems totaled $33.14 million, an increase of 5.4%
over last year's $31.45 million. This increase was the combined result of overall, but steady, consumption increases and '
from a change in the method of billing for multi-family customers previously billed as single utility customers. b amount of revenue from various soun:es and the increases (decreases) over last year are shown in the following tabulation:
1995 Increase Amount Percent Over 1994 Source of Oneratine Revenue (000's) of Total (000's) l Electric system ......................... $ 25,612 77.30 % 1,259 i Water system .......................... 3,972 11.99 % 49 i Pollution control system ................... 3,168 9.56 % 5 Water reuse system ...................... 383 1.15 % 374 Totals ........... ............... $ 33.135 100.00 % 1.687 1 i
I h current year's operating expenses from the combined utilities system totaled $29.8 million, an increase of 4.9% over last year's amount of $28.4 nulhon. Increases in the levels of expenses for the individual systems over the preceding year are shown in the following tabulation:
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i To the Chainnan and Members of the Utilities Commission City of New Smyrna Beach, Florida ,
November 10,1995 #
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1995 Increase Amount Percent Over 1994 i Onerwine Frnense by Function (000's) of Total (000's)
Electric system ......................... $ 23.186 77.90 % 867 :
Water system .......................... 3,383 11.37 % 185 l Pollution control system ................... 3,064 10.29 % 285 Water reuse system ...................... 132 0.44 % 16 Totals ........................... $ ,E265 _19Q305p. _,.,L313 Debt Administmrion b revenue certificate debt coverage ratio is a useful indicator of the Utilities Commission's debt position. The revenue certificate coverage has continued to remain strong over the past three years even in years of debt issuance as is summarized in the following in the following three year tabulation:
1995 1094 1993 i Operating revenues ................... $ 33,135,452 31,448,283 31,651,212 Interest and other income ............... 1,117,899 773,740 640.895 Connection fees . . . . . . . . . . . . . . . . . . . . . . 798,090 727,054 1,521,443 J Assessment collections ................. 3.106 (301) 5.576 i Revenues per certificate resolution . . . . . . 35,054,547 32,948,776 33,819,126 Cost of Operation and Maintenance, net of depreciation and required payments to City . . . 24.481.770 23.310.206 23.% 2.055 Net revenues per certificate resolution ... 10.572.777 9.638.570 9.857.071 Annual debt service requirement ........... 5.521.252 5.518.144 4.795.962 Coverage ratio . . . . . . . . . . . . . . . . . . . 1.91 Times 1.75 Times 2.06 Times l l
b Commission's revenue certificate coverage ratio for each of the last ten fiscal years is presented in Table VIII of the i accompanying financial report.
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As of September 30,1995, the Utilities Commission had outstanding $64,010,000 of revenue certificates payable. All of these obligations are secured by a first lien on and a pledge of the net revenues of the system.
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To the Chairman and Members of the Utilities Commission City of New Smyrna Beach, Florida November 10,1995 Page5 i b Commission's outstanding revenue certificates ratings from Moody's, and Standard & Poor's as follows:
i Moodv's E*-~I=d & Poor's Utilities System Revenue Refunding and improvement Certificates, Series 1978 A A-Utilities System Refunding Revenue Certificates, Series 1987 l Ana AAA (AMBAC Insured)
Unlities System Revenue Certificates, Series 1992 Ana AAA (FGIC Insured)
Utilities System Refunding Revenue Certificates, Series 1993 Ana AAA (FGIC Insured) b debt service requirements on these obligations sie detailed in the notes to the financial statements. 1 Cash hianagement Cash temporarily idle during the year was invested through the use of a competitive bid procedure in shoit-term time deposits and medaan short-term investments. Shorter investment periods were utilized by the Utilities Commission due ;
to the rapid changes and uncertamties ofintemet rates experienced during the fiscal year. & amount of interest earned during the year was $%2,466, of which $200,260 was credited to reduce capitahzed interest expense for the year, b Commission's cash and investments on hand at September 30,1995 and 1994, totaled $17.6 million and $17.9 j million, respectively, b individual components are as follows: !
1995 1994 Current assets:
Operating cash and cash equivalents ................ $ 1.250.833 1.284.959 Restricted assets:
Debt service funds ............................ 8,642,831 8,626,984 Renewal and replacement funds ................... 3,426,167 3,209,265 i Construction funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, % 7,953 2,554,940 ;
Customer deposits ............................ 1,008,581 970,565 )
CR.3 decommissioning fund . . . . . . . . . . . . . . . . . . . . . . 898,370 845,412 ;
Contingency fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 420.949 395.863 l 16.364.851 16.603.029 Total cash and investments . . . . . . . . . . . . . . . . . . . . $ 17.615.684 17.887 388 l
h Commission's investment policy is to mimmize credit and market risks while maintaining a competitive yield on its I portfolio. Accordingly, deposits were either insured by fa ,d depository insurance or collaterahzed in accordance with the Monda Securay for Public Deposits Act (the "Act '
.ollateral on deposits was held either by the Commission.
or by the State of Flonda in accordance with the applic ,s Wsions of the Act. All of the Commission's investments
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held at year-end are classified in the category oflowest m * (backed exclusively by the full faith and credit of the U. S. government) as defined by the Governmental Accot g Standards Board, i
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i To the Chainnan and Members of the Utilities Com.nission City of New Smyrna Beach, Florida November 10,1995 ,
Page 6 OTHER INFORMATION Independent Audit Resolution Number 28-78 and other local and state statutes require an annual audit of the books of account, financial secords and transactions of all admmistrative departments of the Utilities Commission by an independent cenified public accountant selected by the Utilities Commission. The accounting firm of Brent Millikan & Company, P.A., Certified Public Ac. tants, was selected by the Commission to satisfy this requirement. Their independent auditors' report on the financian tatements and schedules of the Commission has been included in the fmancial section this report.
Awards - Certificate ofAchievement The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Utilities Commission, City of New Smyrna Beach, Florida, for its component unit fmancial report for the fiscal year ended September 30,1994. We are also g_.se proud of the fact that we have been awarded with this Certificate for the seventeenth consecutive year.
In order to be awarded a Certificate of Achievement, the Commission must publish an easily readahle and efficiently organized component unit annual financial report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements.
6 A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform ,
to Certificate of Achievement Program requirements, and we are submitting it to GFOA to determine its eligibility for ,
another certificate. '
Acknowledgments
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The preparation of this report on a timely basis could not have been accomplished without the efficient and dedicated i services of the entire staff of the Finance Department. Each member of the department has our sincere appreciation for the contributions made in the preparation of this report.
1 We would also like to thank the individual members of the Utili t ies Commission for their interest, support, and leadership in planning and conducting the financial operations of the Utilities Commission in a most responsible and progressive manner.
Respectfully submitted, y>/
alter C. Davis Charles S. Mitchell, CPA !
Acting Director of Utilities Controller l l
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FINANCIAL SECTION l This section is composed of thefollowing:
l Independent Auditors' Report FinancialStatements l Supplemental Financial Information i
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INDEPENDENT AUDITORS' REPORT l l
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INDEPENDENT AUDITORS' REPORT To the Honorable Chairman and Commissioners j Utilities Commission, City of New Smyrna Beach, Florida New Smyrna Beach, Florida l
We have audited the accompanying balance sheets of Utilities Commission, City of New Smyrna Beach, Florida, as of September 30,1995 and 1994, and the related statements of revenues, expenses and changes in retained earmngs, and ,
cash flows for the years then ended. These fmancial statements are the responsibility of Utilities Commission, City of !
l New Smyrna Beach, Florida's management. Our responsibility is to express an opinion on these fmancial statements i based on our audits.
! 1 l We conducted our audits in accordance with generally accepted auditing standards and Government Auditing Standard.r, j i
l issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to i obtain reasonable assurance about whether the fmancial statements are free of material misstatement. An audi exammmg, on a test basis, evidence supporting the amounts and disclosures in the fmancial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall fmancial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of i Utilities Commission, City of New Smyrna Beach, Florida, as of September 30,1995 and 1994, and the results ofits operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.
l Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The
! supplemental schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements of Utilities Commission, City of New Smyrna Beach, Florida. Such infonnation, except for the statistical data, has been subjected to the auditing procedures applied in the audit of the basic fmancial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. The statistical data has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on it.
In connection with our audit, nothing came to our attention that caused us to believe that Utilities Commission, City of New Smyrna Beach, Florida, was not in compliance with any of the terms, covenants, provisions, or conditions of section 16 of Resolution No. 28-78, dated June 30,1978, as amended. However, it should be noted that our audit was not directed primarily toward obtaining knowledge of such noncompliance.
New Smyrna Beach, Florida November 10,1995 R (diLM.f4 1
205 MAGNOLIA ST.
- NEW SMYRNA BEACil, FL 32168 + (904) 427-1333
- FAX (904) 427-5823
- MEMBE R: American lastitute of Certified PuMic Accountants and AICPA Private Companies Practice Section
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I 1 FINANCIAL STATEMENTS l
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COMPARATIVE BALANCE SHEETS September 30,1995 and 1994 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA I
NEW SMYRNA BEACH, FLORIDA l
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1995 1994 !
Utility Plant: .
El e c tri c plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 55,677,614 54,395,142 Waterplant........................................................................ 27,198,249 24,035,322 l
Pollution control plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,337,222 18,882,285 l
3 Wate r reuse plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,816,822 3,103,065 l
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Ge ne ral plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9,104,315
. 8.947,042 '
l Less: accumulated depreciation and amortization .......... ..................
~IFI3E22T 109,362,855- l 40,877,320) (37,590,277_) !
' 8~156~90T 71,772,579 j Construc tion work in progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,246,511 6,184,167 l l Utility plant, net of accumulated depreciation and amortization ...... 82,503,413 77,956,746 l
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Cash and cash equivale nts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,993,651 11,640,529 Investme nts, at cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,371,200
.................. .............. 4, % 2,500 1
Total restricted asse ts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16,364,851 ...... 16,603,029 l
Current Assets:
! Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,250,833 1,284,959 A ccrued interest receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..124,395 ...... 117,400 Accounts recei vable (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,558,037 .......... 1,081,586 Unbilled a ccount.s receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,778,747 ........... 2,063,574 Inve ntories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,627,476 . . . . . . . . . . . . . . . .891,568 Prepaid expenses and othe r asse ts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139,104 167,822 Assessments re ceivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....... . . . . . . . . . . . . . 76,442 ............ 78,654 Total current asse ts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,555,034 ....... 5,685,563 Deferred Charges and Other Assets:
Unamo rti zed debt expe nse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 642,657 6 % ,579 To tal asse ts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2. . $_107,06.5 955 100,941 917 l
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The accompanying notes are an integral part of the financial statements.
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I Statement 1 4
LIABILITIES AND UTILITYEQUITY 1995 1994 Utility Equity:
Contributed capi tal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 31,204,791 24,249,253 Retained Earnings:
Reserved for restricted debt service funds................................... 5,011,924 5,044,426 U nre se rved (de ficit ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .447,199 .......... (203,893)
- 5,75912T 4,840 53T l
j Total utility equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,663,914 29,089,786
- Long-Term Debt:
Revenue certificates payable (net of current portion) ...... .................. 62,290,000 64,010,000 Less: unamortized discount on revenue certificates and note payable ..... (1,434,192) (1,547,164)
Total long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,855,808 62,462,836 l Restricted Fund Liabilities:
Revenue certificates payable (current portion) ................................. 1,720,000 1,630,000 A ccrued interest payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,910,907 1,952,558 i Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
63,127 391,689 Customers ' deposi ts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,008,581 970,565 Deferred credits:
Allowance for de commissioning costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,048,370 845,413 1 l Allowance for arbitrage reba te . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 101,591 2
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, Total restricted fund liabilities . . . . . . . .. . . . . . ... .............. ..... .. ..... . . 5,750,985 5,891,816 l Current Liabilities: I Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,481,643 1,459,558 Accrued habili ties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 893,333 ....... 785,221 ,
D ue to other governments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 644,133 610,382 i
- Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3,019,109 .. 2,855,161 Other Noncurrent Liabilities
, D e fe rred compensa ted absences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 653,249 560,211 De ferred credi ts - othe r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .122,890 ... 82,107 Total othe r noncurre nt liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 776,139 642,318 Total liabili ti es . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,402,041
..... 71,852,131 Total liabilities and utility equity ................ ........ ................. $ 107.065,955 100,941.917 3
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STATEMENTS OF REVENUE, EXPENSES AND Statement 2
! CIIANGES IN RETAINED EARNINGS
! For the Fiscal Years Ended September 30,1995 and 1994 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FLORIDA 1
1995 1994 l
l Operating Revenue:
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' Sales.................................................................................. $ 32,844,658 31,149,242 O the r reve nue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290,794 ...... 299,041 Total operating revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,135,452 31,448,283 Operating Expenses:
Prod uction expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,736,225 15,514,926 Transmission, distribution, and sewage collection and treatment .. ........ 3,433,468 2,937,195 Custome r a ccounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 808,391 811, % 3 Administra tive and general . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,300,729 4,015,134 Required payments to the City of New Smyrna Beach ....................... 1,945,294 1,922,423 Depre ciation and decommissioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,540,923 3,210,370 Total opccating e xpenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,765,030 28,412,011 Ope ra ting i ncome . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,370,422 3,036.272_
Nonoperating Revenue (Expense):
I nterest earni ngs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 762,206 495,971 ,
l O the r i n come . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .355,693 ...... 277,769 !
Inte rest and debt expense . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . (3,791,166) (3,458,792) l O ther e x penses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (45,577) (37,154)
Loss on disposal of asse ts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (32,988) (80,537)
Total nonoperating (expe nse). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,751,832) (2,802,743) l t
Ne t i ncome (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .618,590 233,529 Retained earnings, beginning o f yea r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,840,533 4,607,004 Re tained earnings, end o f year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5.459,123_ 4.84_0,533 l
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STATEMENTS OF CASH FLOV/S For the Fiscal Years Ended September 30,1995 and 1994 Statement 3 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FLORIDA 1995 1994 Cash Flows From Operating Activities:
Operati ng income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,370,422 .....$ 3,036,272 Adjustments to reconcile operating income to net cash provided by operating activities:
Depreciation, amortization and decommissionin ...................... 3,628,669 3,269,129 Provision for losses on receivables ...............g 66,000 61,000 Nonopera ting revenue (e xpense) . . . . . . . . . . . . . . . . . ........................ . . . . . . . . . . . . . . . . . . . . . . . . . 310,118 240,615 Decrease (increase) in operating assets:
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .(1,257,624) ...... 817,612 Assessme nts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2,212 ......... (302)
Inve ntories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(735,908) . . . . . . . . . . . . . . (39,242)
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .... . . . . . . . 28,718 36,415 increase (decrease) in operating liabilities:
Accounts payabl e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (306,477) 83,067 Due to other governme nts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,751 (60,517)
Customer deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,016 37,954 Other liabili tses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241,933 ........... (18.200)
Net cash provided by (used in) operating activities ..................... 5,419,830 7,463,803 Cash Flows From Capital and Related Financing Activities:
Debt reduction outlays . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,630,000) (1,050,000)
, Contributed capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....... . . . . . . . . . . . . . 1,003,745 1,042,287 l
Proceeds from r, ale of property and equipment ................................. 4,065 63,287 Acquisition and construction of capital assets ............... ................... (2,159,435) ~ (4,528,334)
I nteres t paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(3,921,%5)
(3,795,147)
Net cash provided by (used in) capital and rela ted financing a c tivities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,703,590) (8,267,907)
Cash Flows From Investing Activities:
Purchase of investment securitie s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(5,950,000) .......... (4,500,000)
Proceeds from sale and maturities of investment securities .... 3,541,300 1,038,800 Interest re ceived . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............... . . . . . . . . . . . . . . .1,011,456 . . . . . . . . . . . . . . .677,100 t
! Net cash provided by (used in) investing activities ...................... (1,397,244) (2,784,100)
Net increase (decrease) in cash and cash equivalents ................... (2,681,004) (3,588,204)
Cash and cash equivalents, beginning of year ..................................... 12,925,488 16,513,692 Cash and cash equivalents, end of year ............................................. $ 10J44.484 12_,925 48.8_
, Noncash Capital and Related Financing Activities:
- Acquisition of capital assets . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . .. . $ (5,9_5_l,7.92) 0 J
Contributed capi tal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,95IJ92_ 0_
- The accompanying notes are an integral part of the financial statements.
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NOTES TO THE FINANCIAL STATEMENTS l
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NOTES TO TIIE FINANCIAL STATEMENTS September 30,1995 and 1994 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FLORIDA Note It General Summary The accounting policies of the Utilities Commission, City of New Smyrna Beach, Florida, (the ' Utilities of Commission") conform to the generally accepted accounting principles as promulgated by the American Significant Institute of Certified Public Accountants, the Financial Accounting Standards Board, the Governmental Accounting Accounting Standants Board, and the Federal Energy Regulatory Commission.
Polices Reporting Entity The Utilities Commission, was created in 1967 through the passage of Chapter 67-1754, laws of Florida, Special Acts of 1%7 (House Bill 1669) which amended the Charter of the City of New Smyrna Beach, Florida, to create the Utilities Commission. In a referendum held October 2,1984, City voters approved amendments to the City Charter establishing criteria requiring the funds and entities related to the operation of the Utilities Commission be included as a component unit of the City of New Smyrna Beach, Florida, and an integral part of the City's reporting entity. The basic financial statements are incorporated in the City's Comprehensive Annual Financial Report as an enterprise fund activity.
In 1983, the Utilities Commission entered into a participation agreement with Florida Municipal Power Agency (FMPA) for an entitlement share of electric capacity and electric energy from FMPA's undivided ownership interest in Florida Power and Light Company's St. I2icie Unit No. 2, a nuclear generating unit. The Utilities Commission's role in the agreement is limited to that of a participant contractually obligated to purchase electric capacity and electric energy. The agreement between the Utilities Commission and FMPA does not meet the criteria for inclusion within the reporting entity of the Utilities Commission. The agreement specifically provides that the arrangement is not ajoint venture and neither FMPA nor the other utilities which entered into pesticipation agreements with FMPA for entitlement shares from FMPA's undivided ownership interest in St. I lancie Unit No. 2 are accounting for the agreement as a joint venture. Accordingly, the Utilities Commission is not accounting for the agreement as a joint venture.
Basis ofAccounting Basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the fmancial statements. It relates to the timing of the measurements made, regardless of the measurement focus applied. 'Ihe Utilities Commission utilizes the accrual basis of accounting. By utilizing this method, revenues are recognized when they are camed, ar d expenses are recognized as they are incurred. Unbilled utility service receivables are recorded so as to provide a better matching of service revenues and the costs of providing the service. Based on the accounting and reporting standards set forth in Government Accounting Standards Board (GASB) Statement No. 20,
- Accounting and Financial Reporting for Proprietary Funds and Other GovernmentalEntities that use Pttprietary Fund Accounting,' the Utilities Commission has opted to apply on)y those accounting and reporting pronouncements issued by the GASB subsequent to November 30,1989.
Budget and Budgetary Accounting An annual budget was adopted for the electric, water, pollution control and water reuse utility systems. The budget was adopted on a basis consistent with generally accepted accounting principles (GAAP) except that certain other cash receipts and payments are treated as budgetary items to maintain effective fiscal and <
budgetary control over the collection and disposition of all commission resources. Specific budgetary control l is exercised over internal operating transfers to restricted funds, payments of principal on long-term debt obligations, and collections of contributed capital which are recognized in the budget as additions and/or deductions to reconcile budgeted net cash receipts to reported net income (loss) for each system. Budget appropriations are prepared by the administrative staff and approved as provided by law by the Utilities l Commission. Budgetary control is exercised at the departmental level. Budget amendments, if any, can be requested by the Director of Utilities. However, all budget amendments must be approved by the Utilities Conunission. Unexpended appropriations for operations lapse at year end. No supplemental appropriations were required for the current year.
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NOTES TO TIIE FINANCIAL STATEMENTS (Continued)
September 30,1995 and 1994 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACll, FLORIDA NEW SMYRNA BEACII FLORIDA Note 1: Cash and Cash Equivalents Summary The Utilities Commission invests all cash balances in interest bearing accounts. Eamings from these of investments are appropriately allocated to the investing fund accounts based upon the investment equity and are Significant used, where applicable, to finance general Utilities Commission operations. For purposes of the statement of Accounting cash flows, the Utilities Commission considers all highly liquid debt instruments purchased with original Polices maturity dates of three months or less to be cash equivalents.
(Continued)
Investments Investments are recorded at cost or amortized cost, which approximates market. Adjustments are made to cost, for any premium or discount, which is amortized over the maturity of the investment.
Receivables Accounts receivable have been reported net of an allowance for uncollectible accounts which has been provided based upon management's analysis of historical trends. Utility operating revenues are recognized on the basis of cycle billingr rendered monthly. Unbilled accounts receivable are acemed at September 30th, to recognize the sales revenues earned between the last meter reading date made through the eral of the year.
Inventories Inventories are priced at cost by the use of the "first-in, first-out" method of accounting. The effect of this method is to flow the costs of the materials and supplies in the order in which they are purchased and to assign a balance sheet inventory valuation more nearly at current replacement value. Electric line transformers, electric meters, and replacement units for the generating plants are classified as utility plant in accordance with accepted industry practices set forth by the National Association of Regulatory Utilities Commissioners (NARUC).
Unamorti:ed Debt Discount and Expenses Revenue certificate discounts and issuance costs are deferred and amortized over the term of the bonds using the bond outstanding method which approximates the interest method. Unamortized revenue certificate discounts are presented in aggregate in the financial statements as a reduction of the carrying cost of the related long-term debt. Unamortized debt issuance costs are presented as other assets.
Restricted Assets Proceeds from debt, funds required to be set aside for the payment of revenue bonds debt service and contingencies, and other specific assets set aside for restricted purposes which cannot be used for routine operations are classified as restricted assets since their exclusive use is limited by applicable bond covenants and other legal indentures.
Utility Plant Utility plant is stated at historical or estimated historical cost. The costs of additions, replacements, and renewals of units of property are added to utility plant. The cost (estimated, if not known) of units of property retired, less net salvage, is charged to accumulated depreciation and the appropriate asset account. Donated utility plant is stated at its estimated fair market valur on the date donated.
Maintenance and repairs of property and replacements and renewals ofitems determined to be less than units of property, are charged to operating expense as incurred. Construction period interest is capitalized net of interest earned on unexpended construction funds in accordance with the applicable provisions of Financial Accounting Standard Number 62 and, therefore, depreciated over the remauung useful lives of the related assets.
Depreciation is provided for by utilization of the straight line method (half-year convention in year of acquisition) calculated on a service life basis to amortize the cost of the assets over their economic estimated useful lives which are as follows:
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NOTES TO THE FINANCI AL STATEMENTS (Continued)
M..hs 30,1995 and 1994 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEActi. FLORIDA Note I:
Years Summary Electric System:
of Production plant:
Significant Nuclear production ................................ 27 Accounting Diesel production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-40 Polices Transmission plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30-55 (Continued) Distribution plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28-45 General ple .t:
Structures and improvements . . . . . . . . . . . . . . . . . . . . . . . . . 40 Other general plant ............................... 5-20 Water System:
Source of supply plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25-50 Pumping plant ..................................... 35 Water treatment plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40-50 Transmission and distribution plant . . . . . . . . . . . . . . . . . . . . . . . . 25-50 General plant:
Stmetures and improvements . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Other general plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10-35 Pollution Control System:
Collection plant .................................... 35-50 Pumping plant:
Structures and improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Pumping equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Treatment and disposal plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25-40 General plau . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10-50 Common Plant:
Structures and improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Other general plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-15 Water Reuse System:
Stmetures and improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Transmission and distribution plant . . . . . . . . . . . . . . . . . . . . . . . . 50 CompensatedAbsences "Ihe portion of employee payroll costs paid subsequent to year.end attributable to services performed prior to year.end is recorded and recognized as a current liability. Employees earn annual vacation leave at the rate of 80 hours9.259259e-4 days <br />0.0222 hours <br />1.322751e-4 weeks <br />3.044e-5 months <br /> per year for one through five years of service and 80 hours9.259259e-4 days <br />0.0222 hours <br />1.322751e-4 weeks <br />3.044e-5 months <br /> plus eight hours for each two years service over the first five years to a manmum of 160 hours0.00185 days <br />0.0444 hours <br />2.645503e-4 weeks <br />6.088e-5 months <br /> per year. All outstanding vacation leave is payable upon termination. Employees accumulate ten hours (eight hours prior to July 1,1986) of sick leave credit for each month on regular pay status. Employees make an irrevocable election regarding the accumulation of credits and the amounts of credits which can be received upon termination. One option provides for the payment of all unused sick leave at 75 percent of the existing pay rate at termination. The second option requires the ' banking" of at least 240 accumulated hours. Hours accumulated in excess of 240 hours0.00278 days <br />0.0667 hours <br />3.968254e-4 weeks <br />9.132e-5 months <br /> will be paid annually at 75 percent of the preceding July 1st pay rate.
Deferred Credits and Operating Reserves The reserve for nuclear re-fueling and maintenance outage is an operating reserve established to account for the estimated charges to be incurred for the removal and installation of nuclear fuel assemblies. Charges are made against the reserve at the time the actual re-fueling takes place. The reserve for nuclear plant decommissioning costs was established to acconut for the estimated costs of nuclear plant decommissioning.
Charges against the reaerve will be made at the actual time of decommissioning.
8
--. - - . - - . - -. =_. --
1 l
NOTES TO TIIE FINANCI AL STATEMENTS (Continued) 1 September 30,1995 and 1994 l UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACli, FLORIDA NEW SMYRNA BEACil, FLORIDA 1
Note It Contributed Capital Summary Contributions of capital to a proprietary fund from any source received are recorded in an appropriately of captioned contributed capital account.
Significant Accounting Reserves I Polsces Funded reserves are used to record a portion of retained earnings which must be segregated for some future (Continued) use and which are, therefore, not available for further appropriation or expenditure.
Rates, Revenues and FuelExpense Revenues are recognized based on monthly cycle billings to customers. W rate schedules are approved by the Utilities Commission b electric rate schedule contains an energy cost adjustment clause which reflects the cost of fuel as well as the energy and fuel components of purchased power. Generally, the effect of the increases and/or decreases in the cost of energy is recovered over a four month period and is detemuned as the difference between actual applicable fuel costs and the costs actually billed during the same period b cost of nuclear fuel is amortized to fuel expense based on the quantity of heat produced for generation of electric energy in relation to the quantity of heat expected to be produced over the life of the nuclear fuel core.
Note 2: Pursuant to the applicable provisions of Chapter 2F0, Florida Statutes, De Florida Securityfor Public Depariis Cash Act ("the Act"), the State of Florida, Department of Insurance, Bureau of Collateral Securities, and the Deposits Department of Tnasury have established specific requirements relative to the security and collateralization for I and public deposits. Accordingly, banks qualifying as a public depository in the State of Florida must adopt the I investments necessary procedures outlined in these statutes and meet all of the requirements of this chapter to be designated by the State Trersurer as eligible to receive deposits from municipal depositors. Collateral having a market value equal to 50% of the average daily balance for each month of all public deposits in excess of any applicable depository insurance is required to be pledged or deposited with the State Treasurer to secure such deposits. Additional collateral, up to a maximum of 125% may be required if deemed necessary under the conditions set forth in the Act. Securities eligible to be pledged as collateral are generally limited to obligations of the United States govemment and any state thereof and are held in the name of the State Treasurer's office.
Compliance with the provisions of Chapter 280, Florida Statutes, is monitored by the Department ofInsurance.
Deposits At September 30,1995 and 1994, the, carrying amounts of the Utilities Commission's deposits, including certificates of deposit, were $13,412,950 and $12,205,499, respectively. The September 30,1995, bank balance was $14,135,171 of which $200,000 was covered by federal depositoiy insurance and $13,935,171 was secured in accordance with the statutory provisions of the Act. Included in the carrying amount of Commission deposits is $5,850 in petty cash and change funds.
Investments W Utilities Commission's investment policies are governed by state statutes and local resolution. Allowable investment instruments include: bonds, notes, certificates ofindebtedness, treasury bills, or other securities which are guaranteed by the full faith and credit of the United States of America, interest bearing savings accounts, interest bearing certificates of deposit and interest bearing time deposits. At September 30,1995, the Commission's investments included United States Treasury State and Imcal Government (SLGS) Bonds and overnight investments in money market funds which were secured by U. S. Treasury obligations. The investments are categorized to give an indication of the level of risk assumed by the Commission at year-erxt. 1 Category 1 includes investments that are insured, registered, or collateralized under the applicable sections of the Act, or for which the securities are held by the Commission or its agent in the Commission's name.
Category 2 includes urunsured and unregistemd investments for which the securities are held by the banks' trust departments or agents in the Commission's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the banks, or by their trust departments or agents but not in the Commission's name.
1 9
. _ - - _ . -.... ~ ~ - .. . . . - ,.- - .. _ . _ - _ .... -
NOTES TO THE FINANCIAL STATEMENTS (Continued)
?. ---:-; 30,1995 and 1994 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FLORIDA
! Note 2: At September 30,1995, the Commission's cash and investments are categorized as follows:
Cash Deposits Carrying Market and Tvne of Inv=t-.ie Catenorv 1 Category 2 Catasarv 3 Value Yahia lavedawats i (Continued) U.S. Treasury State and Local Government
{ Series (S145) Bonds . . . . . . . . . . . $ 421,200 0 0 421,200 421,200 ;
Repurchase agreements . . . . . . . . . . . . 0 0 3.781.533 3.781.533 3.746.112 i Totals . . . . . . . . . . . . . . . . . . . . . $_4. 2L200 0 3.,21Lil3 ,jJg,222 .!L1.6L332 :
Note 3: A summary of net accounts receivable at W=har 30, is a follows:
Accounts
\
Receivable 1995 1994 l- Billed customer accounts receivable ........................ $ 1,560,020 1,127,078 Notes receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 915 '
Due from other governments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54.951 0 t
I 1,614,971 1,127,993 !
less: allowance for doubtful accounts . . . . . . . . . . . . . . . . . . . . . . . (56.934) (46.407) i Totals....................................... $ IELQ22 LDEL536 l
l Note 4: A summary of restricted assets at September 30, is as follows:
i Restricted Assets Deposits / Accrued - 1995 1994 i Cash Investment Iggerggi Totals Total i
Debt Service Funds:
, 1978 Sinking Fund ....... $ 0 1,041,622 0 1,041,622 1,040,249
! 1978 Reserve Fund . . . . . . . 0 2,047,395 0 2,047,395 2,047,395 l 1987 Sinking Fund . . . . . . . 0 367,529 0 367,529 367,424 l 1987 Reserve Fund . . . . . . . 0 740,200 0 740,200 740,200 l
1992 Sinking Fund ....... 0 615,529 0 615,529 608,810 1992 Reserve Fund . . . . . . . 0 1,074,200 0 1,074,200 1,074,200 1993 Sinking Fund ....... 0 1,101,227 0 1,101,227 1,093,577 1993 Reserve Fund . . . . . . . 0 1.655.129 0 1.655.129 1.655.129 0 8.642.831 0 8.642.831 8.626.984 Renewal and Replacement Funds:
Res. No. 28-78 ......... 1,056,523 1,000,000 10,251 2,066,774 1,462,269 Connection Fee Fund . . . . . . 859.393 500.000 0 1.359.393 1.746.946 1.915.916 1.500.000 10.251 3.426.167 3.209.265 Construction Funds:
1992 Certificates ........ 957,144 1,000,000 10,809 1, % 7,953 2,554,940
- Customer deposits ......... 754,730 250,000 3,851 1,008,581 970,565
! CR-3 decommissioning Fund .. 196,372 700,000 1,998 898,370 845,412
! Contingency Fund ......... 419.278 0 1.671 420.949 2 863 4
{ Totals .............
$ 4.242.44Q M 28.580 AfQfM21 15 603 022 to 1
. , . - ,,m. n,w .,-e . , - - - - - . , e,-
NOTES TO TIIE FINANCI AL STATEMENTS (Continued)
September 30,1995 and 1994 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FLORIDA Note 5: A summary of utility plant at September 30, is as follows:
Utility Pollution Water Mant EhE1ng Water Control Egnas Common 1222 LOSi I.and and land rights . . . $ 1,672.728 477.145 220.433 0 591.906 2,962.212 2,937,870 5tructures and improvements . 2,600,142 5,081.353 4.129.765 1,614.522 2.763,925 16.189.707 16.110,054 Production plant. nuclear fuel and treatmeo* plant . .. 11.006,827 5.758,749 4,230.732 0 0 21.046.307 20.908,332 Tran.anission. distribution, and collectwo and arcannent plant 39,990.281 15.881,002 14,706,292 2.202,300 0 72.779,876 63,393.764 Other general plant and equipment 407.636 0 0 0 5.748.484 6.156.1?O .,,,,,,1,QQ.3,16 55,677.614 27.198,249 23,337,222 3.816.822 9.104,315 119.134,222 109,362,856 Accumulated depreciation .. (?? 700.931) (6.372.7'4) (7.604.6231 (180.047) (4.018.9051 (40.877.3?o) (37.6?0.277) 32,976,683 20.825,525 15,732.599 3,636,775 5,085.320 78,256,902 71,742,579 Construction in progrees 1.121.231 1.?!8.135 167.400 $ 51.779 _ 1.192.966 4.246.511 6.184.167 Utility plant, net . . $ 34.007.914 22.043.660 15.804.909 g , 6,278,786 82.503.413 77.9'6.746 Capitalized interest on outstanding tax-exempt revenue certificates charged (credited) to projects during constmetion was $55,782 and $500,127, for 1995 and 1994, respectively (net of interest earned on unexpended long-term debt proceeds totaling $200,260 and $165,961, respectively).
Note 6: A summary oflong-term debt outstanding at September 30, is as follows:
IAng-Term Debt 122.5 1204 Utilities System Revenue Refunding and Improvement Certificates, Series 1978-with $8,080,000 (7.00%) and $11,335,000 (7.125%)
term certificates due in 2003 and 2010, respectively ..... .... $ 19,415,000 20,090,000 Utilities System Refunding Revenue Certificates, Series 1987--6.00 %
to 6.70% due serially to 2001, with $2,790,000 (7.00%) and
$2,080,000 (7.10%) bonds due in 2007 and 2011, respectively .... 6,770,000 7,025,000 Utilities System Revenue Certificates, Series 1992--4.10% to 5.60%
due serially to 2004, with $515,000 (5.35%), $1,020,000 (5.80%)
$1,230,000 (6.00%) and $10,160,000 (6.00%) term bonds due in 2002,2007,2010, and 2013, respectively .................. 14,760,000 14,935,000 Utilities System Refunding Revenue Certificates, Series 1993-3.20% to 5.25% due serially to 2011, with $3,685,000 (5.00%) and $6,245,000 (5.00%) term bonds due in 2014 and 2019, respectively . . . . . ... 23.065.000 23.590.000 64,010,000 65,640,000 Iess: unamortized debt discount .......................... (1.434.192) (1.547.164) 62.575.808 M.002.836 lems: current maturities:
Series 1978 Certificates ...... ......... ............. 725,000 675,000 Series 1987 Certificates ................. ........ ... 270,000 255,000 Series 1992 Certificates ............... ..... ........ 185,000 175,000 Series 1993 Certificates ..................... ....... 540.000 525.000 1.720.000 1.630.000 Total long-term debt, net .. ....................... $ .60.855.803 _62.462.836 11
NOTES TO THE FINANCIAL STATEMENTS (Castinued)
September 30,1995 and 1994 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FLORIDA Note 6:
h authonzation for the outstandmg 1978 Certificates and all subsequent issues (collectively referred to as the
, Imag-Term
" Certificates") provides that the Commission will not issue additional obligations except for the construction Debt and acquisition of additions, extensions and improvements to the system or for refunding purposes and ex (Continued) upon the parity conditions provided in the authorizing resolution. h certificates are payable from and secured by a first lien upon and pledge of the net revenues derived from the operation of the system. &
Certificates do not constitute general indebtedness of the Commission or the City of New Smyrna Beach, Florida (City), and the City is not obligated to levy any taxes for the payment thereof.
Under the terms of its long-term debt agreements, the Commission has agreed to mamtam certain restricted funds and to comply with the covenants contained in such agreements which require specific actions to be taken by the Commission. Certain of these agreements contain the following provision relating to the right of the obligation holder:
"Any holder of certificates or any coupons appertauung thereto issued under the provision hereof or any trustee acting for the holders of such certificates may by suit, action, mandamus or other proceedings in any court of competent jurisdiction, protect and enforce any and all rights, including the right to the appointment of a receiver, existing under the laws of the State of Florida, or granted and contained herein, and may enforce and compel the performance of all duties herein required or by any applicable statutes to be performed by the Commission or by any officer thereof. Nothing herein, however, shallbe construed to grant to any holder of the certificates any lien on any real property of the Commission or the City."
The aggregate annual debt service requirements in each of the next five years are as follows: $5,521,015 -
1996; $5,517,799 - 1997; $5,520,854 - 1998; $5,524,458 - 1999; $5,518,912 - 2000; and $80,695,633 -
thereafter. ,
Note 7: la prior years, the Utilities Commission defensed centain ofits outstanding utilities revenue certificates (and Prior certain general obligation bonds of the City of New Smyrna Beach, Florida), originally issued for the System 3
j Years' and payable from revenues derived from the operation of the utilities systems by placing the proceeds of new Defensance certificates in irmvocable trusts to provide for all future debt service payments on the defeased of Debt ' certificates / bonds. Accordingly, the trust account assets and the liabilities for the defessed bonds are not included in the accompanying financial statements. hy include the following at September 30, !
1221 1924 1978 Refunding:
Series 1%2 refunding-3.5% due through 1999 . . . . . . . . . . . $ 35,000 35,000 l Series 1%2-3.9% to 4.2% due through 2000 . . . . . . . . . . . . 1,010,000 1,230,000 Series 1%5-4.2% to 4.25% due through 2004 . . . . . . . . . . . . 1,650,000 1,690,000 Series S-1963-3.9% due through 2002 . . . . . . . . . . . . . . . . . 170,000 195,000 Series T-l%3-4.0% due through 2003 . . . . . . . . . . . . . . . . . 493,000 543,000 Series B-1965-3.7% to 4.1% due through 2003 . . . . . . . . . . . 290,000 315,000 Series 1975-3.75% to 6.2% due through 2004 . . . . . . . . . . . 1,580,000 1,680,000 Series 1975A-5.0% to 6.6% due through 2005 . . . . . . . . . . 2,275,000 2,405,000 Series 1976-4.5% to 6.2% d.ue through 2001 . . . . . . . . . . . . 2,675,000 3,080,000 1993 Refunding:
Series 1986-6.00% to 7.25% due through 1996 call date . . . . . 5,770,000 5,890,000 Series 1990-6.10% to 7.10% due through 1998 call date . . . . . 14,275,000 14,475,000 12 m1 r -wr---
! l NOTES TO THE FINANCI AL STATEMENTS (Contin 3ed) l l September 30,1995 and 1994 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA
! 1 NEW %MYRNA BEAf'll, FLORIDA '
Note 8: b following is a summary of changes in contributed capital:
Contributed )
j Capital Customer Federal Customer Contnbudona Grants Assessments Totals l Balances, September 30,1993 .......... $ 14,182,326 7,306,904 1,717,736 23,206,966 Additions ..................... 1.042.287 0 0 1.042.287 l Balances, September 30,1994 .......... 15,224,613 7,306,904 1,717,736 24,249,253 Additions ..................... 6.775.538 0 0 6.775.538 Balances, September 30,1995 .......... $ 22.000.151 7.306.004 1.717.736 31.024.791 l
Note 9: h legislation that created the Utilities Commission requires it to pay to the general fund of the City of New Required Smyrna Beach a sum equal to six percent (6%) of the gross revenues from utilities under Commission control.
Pay:nent This payment is subordinate to the debt service requirement of all utilities revenue certificates and is recorded To City as a quasi-extemal transaction for financial reporting purposes. The amount paid to the City totaled $1,945,294 and $1,922,423 for the years ended September 30,1995 and 1994, respectively. N balances due to the City 4 at September 30,1995 and 1994, totaled $367,911 and $338,209, respectively.
Note 10: b Commission contributes to the Florida Retirement System of the State of Florida, a cost-sharing, multiple. 1 Employee employer public employee retirement system created in December,1970, that acts as a common investment and i
Pension i.ai6a,aive agent for municipalities and other qualifying political subdivisions in the State of Florida. b Plan Commission's payroll for employees covered by the System for the year ended September 30,1995, was
$5,593,503. Total payroll for the year was $5,698,691.
All full-time employees are eligible to participate in the system, which also provides for death and disability benefits. Benefits fully vest on reaching 10 years of creditable service and are computed on the basis of agas, average final compensation, and service credit. Average Final Compensation (AFC) is the average of the five highest fiscal years of earnmgs. Each year of service is expressed as a percentage of AFC. b total percentage value received is determined by calculating the total value of all service, which is based on the retirement plan to which the member belonged when the service was earned as follows: l Regular Class Retirement up to age 62 or 30 years service . . 1.60% l Retirement at age 63 or 31 years service . . . . 1.63 %
Retirement at age 64 or 32 years service . . . . 1.65%
Retirement at age 65 or 33 years service . . . . 1.68%
. SpecialRisk Class Service from 12/100 through 9/30n4 . . . . . . 2.00%
Service from 10/1/74 through 9/30n8 . . . . . . 3.00%
Service from 10/1n8 through 12/31/88 . . . . . 2.00%
Service from 1/1/89 through 12/31/89 . . . . . . 2.20%
Service from 1/1/90 through 12/31/90 . . . . . . 2.40%
Service from 1/1/91 through 12/31/91. . . . . . 2.60%
! Service from 1/1/92 through 12/31/92 . . . . . . 2.80%
Service on or aner 1/1/93 . . . . . . . . . . . . . 3.00 %
1 13
NOTES TO THE FINANCIAL STATEMENTS (C:stiaued)
September 30,1995 and 1994 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA l
NEW SMYRNA BEACH, FLORIDA Note 10: The funding methods and deternunation of benefits payable are provided in the variou acts of the Florida Employee legislature, which created the fund, including subsequent amendments thereto. In previous years, these acts Pension provided, in general, that funds were to be accumulated from employee contributions, employer contributions, Plat- State appropriations and income from investments of accumulated funds. The act also pmvides that, should (Continued) the accumulated funds in the fund at any time be insufficient to meet and pay the benefits due, the employer shall supplement the funds by an appropriation from current funds, or from any revenues which may lawfully be used for said purposes, in an amount sufficient to make up the deficiency.
The Commission's contribution to the plan dunng the year ended September 30,1995, totaled $984,130, which s was 17.10% (regular class) of the qualifying compensation for the period from October 1,1994 through I December 31,1994, and 16.91% for the period from January 1,1995 through September 30,1995. W l representative amount of the Comnussion's contribution to the plan was not provided by the plan administrator, i
however, it was not significant in relation to the total contributions required of all participating entities (approximately $2.93 billion). bre were no employee contributions made during the year. i h
- pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary inemases and step-rate benefits, estimated to be payable in the future 4
as a result of employee service to date. h measure is the actuarial present value of credited projected benefits and is intended to help users (1) assess the Florida Rauement System's funding status on a going-concern basis, .
(2) assess progress made in accumulating sufficient assets to pay benefits when due, and (3) make comparisons among Public Employee Retirement Systems and employers. b measure is independent of and should not
{
i he confused with the actuanal funding method used to determine contributions to the system. i i
The plan does not make separate measurements of assets and pension benefit obligations for individual employers. b estimated pension benefit obligation at July 1,1995, was computed based upon assumptions determmed through an independent actuarial valuation performed as of July 1,1995, in accordance with Governmental Accounting Standards Board Statement No. 5. Significant actuarial assumptions used in the valuation include (a) a rate of return on the investment of present and future assets of 8 percent per year can=n t~t annually; (b) projected annual salary increases of 7.5 percent per year compounded annually, (c) payroll growth of 7.0 percent per year, and (d) post-retirement benefit increases of 3 percent per year.
The total unfunded pension benefit obligation (estimated) applicable to the Commission's employees is not i
separately detennined by the actuary. At July 1,1995, the unfunded pension benefit obligation of the Florida Retirement System was $5.728 billion, which is computed as follows:
Amount P. ndan Benefit Obbdon (000.000 Omitted)
Annuitants and vested terminated employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15.479 Current Employees:
Accumulated member contributions ............................... 400 Employer-financed Vested Benefits ............................... 27,114 Employer-financed Non-vested Benefits ............................ 4.311 Total Pension Benefit Obligation ................................... 47,304 Net Assets available for benefits _ at actuarial value (amortized cost is $37,524; market value is $45,223) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.576 Unfunded Pension Benefit Obligation ............................. .. $ 5.728 1
Ten-year historical trend information showing the Florida Retirement System's progress in accumulatmg i
sufficient assets to pay benefits when due is not presently available from the State of Florida, Department of I
- Administration, Division of Retirement.
14
. l
I NOTES TO Tine FINANCIAL STATEMENTS (Ccatinued)
September 30,1995 and 1994 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLOPJDA NEW SMYRNA BEACif, FLORIDA l
Note 10: The following data is provided as part of the biennial actuarial valuation to meet the requirements of GASB Employee Statement No. 5, and includes data for valuation years only, beginning with fiscal year 1986-1987, the first year Pension for which it was available:
Plan (Continued) Analysis of Funding Progress I (000's Omitted)
Net Assets Unfunded Obligations Available Pension Pension Annual As Percent Fiscal For Benefit Percent Benefit Covered of Covered Xcat Benefits Obhation Funded Oblication Payroll Payroll I 1986-1987 $13,977,000 $20,819,000 67.1 % $6,842,000 $9,353,674 73.2 %
1988-1989 17,558,662 27,369,885 64.2 % 9,811,223 10,846,531 90.5 %
1990-1991 23,365,936 33,818,867 69.1 % 10,452,931 13,061,619 80.0 %
1992-1993 31,693,000 39,685,000 79.9 % 7,992,000 14,562,000 54.9 %
1994-1995 41,576,000 47,304,000 87.9 % 5,728,000 16,281,000 35.2 %
Note 11: The following is a summary of the segment information for the Commission's individual utility systems:
Segment Information Pollution Water <
Electric Water Control Reuse System System System System Iolal l
Operating revenue . . . . . . . . . $ 25,612,207 3,972,005 3,I68,544 382,696 33,135,452 I Depreciation / decommissioning . 2,088,556 686,909 6 % ,258 69,200 3,540,923 Operating income (loss) . . . . . 2,426,648 588,488 104,686 250,600 3,370,422 I Required payments to City ... 1,499,615 246,124 198,430 1,125 1,945,294 Net income (loss) . ....... 1,163,897 (287,157) (258,478) 10,328 618,590 Contributed capital . . . . . . . . . 1,124,877 10,949,277 19,130,637 0 31,204,791 Utility plant acquisitions . . . . . 899,568 2,238,830 4,563,447 465,165 8,167,010 ,
Utility plant retirements ..... 218,067 109,414 5,819 0 333,300 Revenue certificates payable .. 32,282,429 18,437,502 7,830,212 5,459,857 64,010,000 i Utility equity . . . . . . . .... 8,995,328 12,240,007 16,116,218 (687,639) 36,663,914 Total assets ............. 52,059,991 29,542,544 20,111,980 5,351,440 107,065,955 Note 12: "Ihe Commission is engaged in routine litigation incidental to the conduct of its utilities affairs, in the opinion i legal of legal counsel to the Commission, no legal procew'ings are pending or threatened against the Commission l Matters which are not covered by applicable insurance which would inhibit the Commission's ability to perform its ,
operations or materially affect its financial condition. ;
Note 13: The Commission, acting through the Florida Municipal Power Agency (FMPA), the Utilities Commission is Commitments a participant in a portion of Florida Power and Light Company's (FPL) St. lecie Unit No. 2, a nuclear '
generating unit. FMPA originally acquired an 8.806% urufivided ownership interest of St. Lucie No. 2 together with rights to receive electric capacity and electric energy under a reliability exchange agreement. The Commission's participation provides for a 9.884% entitlement share of FMPA's ownership interest. A reliability exchange agreement provides for FMPA's exchanging 50% ofits share of the output from St. lxcie No. 2 for a like amount from FPL's exclusively owned St. lecie No. I to mitigate the potential for economic loss resulting from the extended or permanent outage or early retirement of St. Lucie No. 2. ,
15
f l
NOTES TO THE FINANCIAL STATEMENTS (Centi ved)
Septernher 30,1995 and 1994 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACll, FLORIDA Note 13:
The Commission, as a participant, has also entered into a power sales contmet which requires payment on Ccmmitments "takeand pay" basis for the Commission's entitlement share of the project capability for the St. Imcie Project (Continued) for each month during any portion of which electric capacity and electric energy are available to the Commission from the St. Imcie Project, including electric capacity and electric energy under the reliability exchange agreement with FPL. In the event payment is not required for any month under the Commission's power sales contract, it is required to make payment for such month under its project support contract on a "take-or-pay" basis. The payment under the project support contract would be the amount the Utilities Commission would have been required to pay under its power sales contract for such month if any electric I capacity and electric energy from the St. lxcie Project had been made available to them. As a result of these agreements, the Commission is obligated to provide payments of approximately $3.7 million annually.
Based on an updated engineering report dated February 20,1995, the Commission's anticipated share of deconunissioning costs applicable to its participation in Florida Power Corporation's (FPC) Crystal River Unit No. 3, a nuclear generating unit, is expected to be approximately $10.9 million at its expected date of decommissioning in 2016. An operating reserve was established to provide advanced funding for these j
estimated future costs. Funding of the reserve began in 1985. The balance in the fund, plus the interest earned thereon, are expected to be sufficient to meet the Commission's portion of the estimated future decommiss*oning costs. The provision for decommissioning expense recognized during the years ended September 30,1995 and 1994, totaled $202,957 and $30,988, respectively.
During 1995, the Commission had additional unrecogmzed construction contract commitments of approximately
$2.5 million for utility plant expansion and upgrading.
On July 12,1995, the Commission authorized th; validation and issuance of revenue certificates in an amount not to exceed $65 million, for the purpose of financing anticipated sewage treatment plant improvements of $35 million and for the purpose of refunding the Series 1978 Revenue Certificates and the Series 1987 Refunding Certificates, including issuance costs thereof in an amount not to exceed $30 million. Since that date, steps have been taken to secure appraisals and cost analyses on the proposed improvements.
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i SUPPLEMENTAL INFORMATION i
This section is ccmposed of the following:
Supplemental Detail Financial Information ofthe Electric System, Water System, Pollution ControlSystem and Water ,
Reuse System j Statistical Section !
These schedules provide a more detailed new of the " Basic Financial Fsatements " presented in the preceding subsection. >
Resoi &.a Numbers 16-75 and 28-78, as amended, established the elecinc, unter, pollution control, and water reuse systems as '
a single enterprise fund. These schedules are presented to provide detailed informa: ion on the individual utility systems and to present the budgetary comparisons that are not necessaryfor a fair presentation in conformity with generally accepted accounting principles.
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SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS Schedule 1 F r the Fiscal Year Ended September 30,1995 With Comparative Actual Amounts for the Fiscal Year Ended September 30,1994 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FIDRIDA NEW SMYRNA BEACH, FIDRIDA i
s Pollution Water Totals Electric Water Control Reuse 1995 1994 Operating Revenue:
Sales........................................... $ 25,437,942 3,868,771 3,155,249 382,6 % 32,844,658 31,149,242 Other revenues . . . .. . .. .. . . . . . . .. . . . . .. . . . . . 174,265 103,234 13,295 0 290,794 299,041 Total operating revenue ........ . ... 25,612,207 3,972,005 3,168,544 382,6 % 33,135,452 31,448,283 !
Operating Expenses:
Production er.pensee ................. ....... 14,828,640 907,585 0 0 15,736,225 15,514,926 )
Transmission, distribution, and sewage 1
c:llection and treatment ................ 1,770,137 394,865 1,207,350 61,116 3,433,468 2,937,195 l Customer accounting ........................ 499,242 191,918 I 117,231 0 808,391 811, % 3 l Administrative and general ................ 2,499,369 956,116 844,589 655 4,300,729 4,015,134 j Required payments to the City of
- Nzw Smyrna Beach .......... ........... 1,499,615 246,124 198,430 1,125 1,945,294 1,922,423 l Depreciation and decommissioning . .... 2,088,556 686,909 6 % ,258 69,200 3,540,923 3,210,370 Total operating expenses ............ 23,185,559 3,383,517 3,063,858 132,096 29,765,030 28,412,011 Operating income (loss) . ........... 2,426,648 588,488 104,686 250,600 3,370,422 3,036.272 Nonoperating Revenue (Expenses)
Int: rest earnings .. .. . .................... . . 384,652 228,964 136,080 12,510 762,206 495,971 Other income . . . . .... .. . . . . . . . . . . . .. .. . . . . . 301,416 52,179 2,098 0 355,693 277,769 Int: rest and debt ex (1,905,793) (1,126,257) (506,334)
Other expenses ..... (252,782) (3,791,166) (3,458,792)
. . . pense
..... (~ 0,073) (30,878) (4,626) 0 (45,577) (37,154)
Gain (less) on disposal of assets ......... (32,953) 347 0 (32,988)
(382) (80,537) j Total nonoperating revenue ......... (1,262,751) (875,645) (373,164) (240,272) (2,751,832) (2,802.743)
Net income (loss) ..................... 1,163,897 (287,157) (268,478) 10,328 618,590 233,529 !
Retained earnings, beginning of year ....... !
6,706,553 1,577,887 (2,745.941) (697,966) 4,840,533 4,607,004 Retained earmngs, end of year ............... $ 7,870.450 J290,730,13_,014.419) (687,638) 1 4_59 123 4,840J33 l
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SCHEDULE OF REVENUE, RECEIFTS, EX1'ENSES AND DISBURSEMENTS - Schedule 2 BUDGET AND ACTUAL - EIECTRIC SYSTEM (NON-GAAP BUDGETARY BASIS)
For the Fiscal Year Ended September 30,1995 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FLORIDA Variance Favorable Budget Actual (Unfavorable)
Revenue and Receipts:
Direct Sales:
Electri c sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 24,950,970 24,877,234 (73,736)
Other re venues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197,500 174,265 (23,235)
Nonoperating revenue:
Inte rest earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220,275 384,652 164,3T/
Me te r deposit interest e xpe nse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 (31,250) (31,250) ,
Other revenues (expenses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165,000 291,343 126,343 Total revenue and re ceipts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,533,745 25,6 % ,244 162,499 Operating Expenses:
Power produ ction and fuel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,324,256 14,828,640 495,616 Transmission and distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,450,049 1,770,137 (320,088)
Cus tome r accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 498,376 499,242 (866)
Adminis tra tive and general . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . 2,565,302 2,499,369 65,933 Required payments to the Cit 1,506,958 1,499,615 7,343 Decommissioning expense....y of New Smyrna Beach ......... 0
................ ...... ................ 202,957 (202,957)
Total opera ting expe nses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,344,941 21,299,960 44,981 Net revenue and receipts .. ... . .... . . ... . . . . . . . . . . . .. . . . ... . 4,188,804 4,396,284 207,480 Operating Transfers In (Out):
Sinking Funds:
1978 Ce rti fi cates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,005,737)
.. (1,005,737) 0 198 7 Certifi cates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (330,728) (330,728) 0 ;
1992 Certifica tes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(537,254) (537,254) 0 1993 Ce rti fi cates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (885,921) 885,921) 0 (2,759,640) , 59 640) 0 Renewal and Replacement Funds:
Required contribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,429,164) (1,429,164) 0 Total ope rating transfe rs (out). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,188,804) (4,188,804) 0 Budgeted net cash receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0 207,430 2.07.480 Additions (Deductions) Required to Reconcile Net Cash Receipts to Net income (GAAP Basis):
Unbilled re ve nue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 687,321 Capitalized nuclear ' plant improvements recovery charges ..... (126,F 3)
Prmcipal portion of required Sinking Fund transfers ............ 838,L17 Ex cess Sinking Fund transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131,504 Net transfers to Renewal and Replacement Fund ................ 1,429,164 Gain (loss) on disposal of property and equipment .............. (32,953)
Depreciation and decommissioning ....................... ........ (1,885,599)
Amortiza tion of debt expe nse . . . . . . . . . . . . .. . ... . . . .. . .. . . . .. .. . . (84,924) 95641T N e t i n co m e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $_l,_1.6_3,897 18
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l l SCHEDULE OF REVENUE, RECEllTS, EXPENSES AND DISBURSEMENTS - Schedule 3 i
BUDGET AND ACTUAL - WATER SYSTEM (NON-GAAP BUDGETARY BASIS) l For the Fiscal Year Ended September 30,1995 l UTIIII1ES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA l NEW SMYRNA BEACH, FLORIDA i
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Variance Favorable >
Budget Actual (Unfavorable)
Revenue and Receipts:
Direct Sales:
Water sal es . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ . . 3,678,851 3,855,735 176,884 Other revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....... . . . . . . . . . .105,000
....... 103,234 (1,766)
Nonoperating revenue:
Interest earmn gs . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . 164,000 228, % 4 64, % 4 Meter deposit Interest exynse.......................... . ..... j 0 (5,859) (5,859) t Other revenues (expenses) . .............. .................. 17,500 21,301 3,801 Connection fees . . . . . . . . . . . . . .. . . . . . . . .. . . . . . . .. . . .. .... . . . . . . . .295,959
........ 361,477 65,518 l Meter setting installation charget .............. ................... 85,000 138,845 53,845 l Total revenue and receipts . ... .......... .. .................. 4,346,310 4,703,697 357,387 Operating Expenses:
Water production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 929,552 907,585 21, % 7 l Transmission and distnbution ... .......... ...................... 374,404 394,865 (20,461)
Customer accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 % ,899 191,918 4,981 Administrative and general . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 995,705 956,116 39,589 Required payments to the City of New Smyrna Beach ........ 236,066 246,124 (10,058) l Total operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,732,626 2.6 % ,608 36,018
, Net revenue and receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,613,684 2,007,089 393,405 i
Operating Transfers In (Out):
Sinking Funds:
1 197 8 Certi ficates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (561,987) (561,987) 0 1987 Certi ficates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (352,776) (352,776) 0
- 1992 Certi ficates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (142,263) (142,263) 0 i 1993 Certificates ............... ........... . ....... .......... 572,881 (572,881) 0 (1(,62K9D7))
(1,629 907) 0 Renewal and Replacement Funds: '
l Required contribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (310,143) (310,143) 0 Restricted fund contribution .. ............ ............ ......... . (295,959) (361,477) (65,518)
(606,102) (671,620) (65,518)
Restwted fund contribution for operations ...................... 622,325 622,325 0 Total operat'ng transfers (out)....... ....................... (1,613,684) (1,679,202) (65,518) l Budgeted net cash receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0 327,887 3274 87
! Additions (Deductions) Required to Reconcile Net Cash
!. Receipts to Net income (GAAP Basis): i Unbilled revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. . 13,036 l Connection fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (361,477) )
Meter setting installation charges .......~....... ........... .... (138,845)
Principal portion of required Sinking Fund transfers .......... 525,894 I Excess Sinking Fund transfers ........... ...... ....... ..... ... .. .. 34,821
- Net transfers to Renewal and Replacement Fund ............... 47,295 Gain (loss) on disposal of property and equY nent ............. 347 Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............ (686,909)
Amortization of debt expense ...... ... .. ........... .... .. . . ... . . (51,20j6 (615F44)
J Net (l o ss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (2.87 15_7_)
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SCHEDULE OF REVENUE, RECEHTS, EXPENSES AND DISBURSEMENTS - Schedule 4 ;
BUDGET AND ACTUAL - POLLUTION CONTROL SYSTEM (NON GAAP BUDGETARY BASIS) v For the Fiscal Year Ended September 30,1995 U'ITIJTIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FLORIDA Variance !
Favorable i Budget Actual (psfavorable) !
Revenue and Receipts:
- Direct Sales:
Pollution control charges . . . . . . . ... . . . . . . . . . .. . . . . . . . . . . . . . . . . . . $ 2,991,086 3,140,975 149,889 ,
Other revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . ... . .. . . .. . . . . . . . . . . 10,000 13,295 3,295 !
Nonoperating revenue:
Interest earnmgs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92,813 136,080 43,267 '
Meter deposit interest expense. . . . . . . . .. . . . .. . . . . . . . . . . . . . . . . . . . 0 (1,953) (1,953)
Other revenues (expenses) . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . .. . . . . 6,000 (2,528) (8,528) ;
Connection fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . .. . . .. . . . . . 264,578 297,768 33,190 -
Total revenue and receipts ................................... 3,364,477 3,583,637 219,160 b
Operating Expenses.
Collection and treatment system ..... ............................. 1,172,486 1,207,350 (34,864)
Customer accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . 120,219 117,231 2,988 Ad ministrati ve and general . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . 770,217 844,589 (74.372) ;
Required payments to the City of New Smyrna Beach ........ 189,846 198,430 _ (8,584) i i
Total operating e xpenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,252,76S 2,367,600 (114,832) I Net revenue and receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . 1,111,709 1,216,037 104,328 )
Operating Transfers In (Out):
Sinking Funds:
1978 Certi ficates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . (517,570) (517,570) 0 ]
1987 Certi ficates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (51,446) (51,445) 0 '
1992 Certi ficates . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . .. . . . . . . . (127,201) (127,201) 0 1993 Certi ficates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (53,531) (53,531) 0 (749,7W) (749,748) 0 Renewal and Replacement Funds: l' Required contribution . .. . . . . .. . ... . . . ... .. .. ................... (302,519) (302,519) 0 Restricted fund contribution ................................. .. _ (264,578) (297,768) (33,190)-
(567 097) (600,287) (3TT90) ,
t Restricted Fund contribution for operations ..................... 260,311 260,311 0 Water Reuse System contribution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (55,175) (55,175) 0 {
t Total operating transfers (out)............................... (1,111,709) (1,144,899) (33,190)
Budgeted net cash receipts ... ...... .......................... $ 0 71,138 71J38_
Additions (Deductions) Required to Reconcile Net Cash Receipts to Net Income (GAAP Basis):
Unbilled revenue . . .. . . . . . .. . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,274 Connection fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (297,768)
Principal portion of required Sinking Fund transfers .......... 231,999 Excess Sinking Fund transfers ... .... ...... ... ................... . 31,135 .
Net transfers to Renewal and Replacement Fund ............... 339,976 Transfer to Water Reuse System................................... 55,175 Gain (loss) on disposal of property and equipment ..... ....... (382)
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6%,258)
Amortization of debt expense .... .............. .................... (17,767)
(339,616)
Net (ioss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $_(268,478) l 20
f SCHEDULE OF REVENUE, RECEIPTS, EXPENSES AND DISBURSEMENTS - Schedule 5 i
EUDGET For the FiscalAND Year Ended ACTUAL September - WATER 30,1995 REUSE SYSTEM (NON-GAAP BUDGETARY BASIS)
UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FLORIDA l
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Variance Favorable Budget Actual (Unfavorable)
- Revenue and Receipts
i Direct Sales:
Reuse water sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32, . . .%
. . 9. . $ 18,746 (14,223)
Reuse subsidy surcharge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353,597 363,407 9,810 Nonoperating revenue:
Interest earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,912 12,510 (5,402)
Other revenues (expenses) . . . . . . .. . .... . .. ... . . .... . ..... . ... .. . 0 0 0 Total revenue and receipts ...... . . ... .. . . . ... . . ... .. . .. . . . . . 404,478 394,663 (9,815)
Operating Expenses:
Transmission and distribution s 63,906 i Customer accounting . . . . . ........................ . . . . . . .ystem . . ............. . . . . . . . . . . . . . . . . .0. . . . . . 61,116
... 2,790 0 0 l Administrative and general . . .. . . . . ... .. .. . ...... ... ....... . . . . . . . . . 3,800 655 3,145 l Required payments to the City of New Smyrna Beach .. . .... 1,978 1,125 853 Total opera ting expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 .... 69,684 62,8 %
.. 6,788 Net revenue and receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 334,794 331,767 (3,027)
Operating Transfers In (Out):
Sinking Funds:
1992 Certi fica tes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(239,337) .... (239,337) 0 1993 Cet tificates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (150 ...... (150,120) 0 l (3S8,120)57) (3W,~157) 0 Renewal and Replacement Funds:
Required Contribution. . . . . . . . . . . . . . . .. . . . . . . . . ... . . . . . . . . . . . . . . . . . . .
(512) (512) 0 l Pollution Control System contribution for operations..... ...... 55,175 55,175 0 Tot.J operating transfers (out)...... ......................... (334,794) (334,794) 0 l Budge ted net cash receipts . . .. . .. . . . . . . . . .... . . ............... $ 0 (3,027) (3,0J2 Additions (Deductions) Required to Reconcile Net Cash Receipts to Net Income (GAAP Basis):
Unbilled revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 543 Principal portion of required Sinking Fund transfers ............ 91,090 Excess Sinking Fund transfe rs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,582 Deprecia ti on . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (69,200) i Amortization of debt expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,997) i Net Transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (54,663) 13 355-Ne t (los s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,328 21 l
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SCIIEDULE OF OPERATING EXPENSES- Schedule 6 ELECTRIC SYSTEM For the Fiscal Years Ended September 30,1995 and 1994 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA t NEW SMYRNA BEACH, FLORIDA 1995 1994 Power Production and Fuel:
Nuclear Power Generation:
Fuel............................................................................... $ 140,703 89,747 Operation........................................................................ 467,886 402,988 Mainte na nce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280,859 ...... 337,568 Diesel Power Generation:
Fuel............................................................................... 177,643 14,574 ,
Operation......................................................................... 191,429 362,795 i Main tena nce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,025 .... 19,913 '
Oiher Power Supply:
Purchased powe r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,160,082 13,047,054 System control and load dispatching .......................................... 356,013 368,524 14,828 640- 14,643 f6T Transmission and Distribution:
Operation............................................................................. 1,285,032 1,092,097 Mai n te nance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 485,105
.... 296,276 1,770~,T3T ' 1,38'837T Customer Accounting:
Operation.......................................................................... 499,242 499,414 Administrative and General: E Operation............................................................................. 2,313,512 2,263,570 M ai nte nance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .I85,857
.... 164,018 2,4993 69- 2,427J88-Required Payments to the City of New Smyrna Beach ..' ........................ 1,499,615 1,498,049 Depreciation and de commissioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,088,556 1,862,874 Total operating e xpenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $__2_3 a 185.559 22_,319,461 22
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SCHEDULE OF OPERATING EXPENSES- Schedule 7 WATER SYSTEM _
For the Fiscal Years Ended September 30,1995 and 1994 i UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FLORIDA 1995 1994 Water Production:
Source of Supp!y: ,
Operation........................................................................ $ 64,250 55,206 Mainte nance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17,864 . . . . . . . . . . . . 21,045 Pumping:
Operation......................................................................... 149,890 148,718 Mainte nance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,609 . . . . . . . . . . . . . 3,102 Water Treatment:
Operation........................................................................ 661,490 636,048 Main te nance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7,482 . . . . . . . . . . . . .7,644 907,585- 87T,763-Transmission and Distribution:
Operation............................................................................. 361,174 352,154 Mai nte nance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,691 . . . . . . . . . . . . .20,720 39E865- 372~874-Customer Accounting:
Operation............................................................................. 191,918 193,703 Administrative and General:
Operation............................................................................ 874,575 821,945 Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81,541 . . . . . . . . . . . . .51. . 781 956TTE 873h2E Required Payments to the City of New Smyrna Beach ............. ........ . .. 246,124 234,256 Depre cia tion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . '. . . . . . . . . . . . . . . . . . . . .686,909
.. 651,195 Total operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 31 383,517 3.197.517 l
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SCIIEDULE OF OPERATING EXPENSES- Schedule 8 POLLUTION CONTROL SYSTEh!
For the Fiscal Years Ended September 30,1995 and 1994 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FLORIDA 1995 1994 Collection and Treatment System:
Collection and Pumping:
Operation................................................................ $ 133,056 351,234 Main te nance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .308,744 .. 48,685 Treatment and Disposal:
Operation....................................................................... 738,401 694,031 Main te na nce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,149 ... -24,312 1,207~350- 1,IIL262-Customer Accounting:
Operation....................................................................... I17,231 118,846 Administrative and General:
Operation.................................................................. 807,317 685,368 Main te nanc e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,272 ... 26,347 844,589- 711,7I5-Required Payments to the City of New Smyrna Beach ............. ....... .... 198,430 189,707 D ep r e cia tio n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 696,258 640,802 Total operating expenses . . . . ... ... . . . . . . . . . . .. . . . . . . . . . . . ... . . $ 3.063,858 2.,779J32_
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i SCHEDULE OF OPERATING EXPENSES- Schedule 9 WATER REUSE SYSTEM For the Fiscal Years Ended September 30,1995 and 1994 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FLORIDA I l
1995 1994 Transmission and Distribution System: !
Operation........................................................................... S 59,831 57,415 '
Mai nte na nce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1,285 ........... 271 61,116 57,686' ,
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Administrative and General: '
Operation............................................................................. 655 2,105 Mainte na nce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0. . . . . . . 0 655 2,lD5' l
Required Payments to the City of New Smyrna Beach ........................... 1,125 411 1 1
Depre ci a tio n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69,200 55,499 Total ope rating e xpenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 132.096 115,701 ;
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SCHEDULE OF INTEREST EARNINGS Schedule 10 For the Fiscal Years Ended September 30,1995 and 1994 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FLORIDA ,
1995 1994 Interest Earnings By Source:
From Investments:
Si nki ng funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 349,255 231,404 Rene wal and repla ce ment funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186,683 134,943 Custo mers' deposi ts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,059 39,383 Other............................................................................. 140,382 70,242 739 379- 475 972~
From Assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,827 19,999 ,
To M interest earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 762,206 495.971 !
l Interest Earnings By System:
Ele c tric system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 384,652 236,089 Wa ter sys te m . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228,964 152,955 Pollution control syste m . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136,080 100,089 ,
Wa te r reuse syste m . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,510 6,838 !
4 Total inte rest earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 762,2 1 495.971 l i
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SCIIEDULE OF DEBT SERVICE REQUIREMENTS TO AfATURITY Schedule 11 F:r the Fiscal Year Ended September 30,1995 Page 1 of 3 UTIIJTIES COMMISSION, CITY OF NEW SMYRNA BEACH, FIDRIDA NEW SMYRNA BEACH, FIDRIDA Utilities System Revenue Refunding Utilities System and Improvement Certificates Refunding Revenue Certificates Series 1978 Series 1987 Pcyment Total Principal Total Date Principal Interest Requirements Amount Interest Requirements 10/01/95 $ 355,000 686,609 1,G41,609 0 232,528 232,528 G4/01/96 370,000 674,184 1,044,184 270,000 232,528 10/01/96 502,528 380,000 661,234 1,041,234 0 224,428 04/01/97 224,428 395,000 647,934 1,042,934 285,000 224,428 509,428 10/01/97 410,000 634,109 1,044,109 0 215,593 215,593 G4/01/98 425,000 619,759 1,044,759 305,000 215,593 520,593 10/01/98 435,000 6N,884 1,039,884 0 205,833 205,833 G4/01/99 455,000 589,659 1,044,659 325,000 205,833 530,833 10/01/99 470,000 573,734 1,043,734 0 195,270 195,270 04/01/2000 485,000 557,284 1,042,284 345,000 195,270 540,270 10/01/2000 500,000 540,309 1,040,309 0 183,885 183,885 G4/01/2001 520,000 522,809 1,042,809 370,000 183,885 553,885 10/01/2001 540,000 504,609 1,044,609 0 171,490 171,490 04/01/2002 555,000 485,709 1,040,709 390,000 171,490 561,490 10/01/2002 575,000 466,284 1,041,284 0 157,840 157,840 04/01/2003 595,000 446,159 1,041,159 420,000 157,840 577,840 10/01/2003 615,000 425,334 1,G40,334 0 143,140 143,140 04/01/20M 640,000 403,809 1,G43,809 445,000 143,140 588,140 10/01/20G4 660,000 381,009 1,041,009 0 127,565 127,565 04/01/2005 685,000 357,497 1,042,497 480,000 127,565 607,565 10/01/2005 710,000 333,094 1,G43,094 0 110,765 110,765 04/01/2006 735,000 307,800 1,G42,800 510,000 110,765 10/01/2006 620,765 760,000 281,616 1,441,616 0 92,915 92,915 G4/01/2007 790,000 254,541 1,G44,541 545,000 92,915 637,915 10/01/2007 815,000 226,397 1,041,397 0 73,840 73,840 04/01/2008 845,000 197,363 1,042,363 585,000 73,840 658,840 10/01/2008 875,000 167,259 1,G42,259 0 53,073 53,073 04/01/2009 905,000 136,088 1,041,088 630,000 53,073 683,073 10/01/2009 940,000 103,847 1,043,847 0 30,708 30,708 G4/01/2010 970,000 70,359 1,040,359 670,000 30,708 700,708 10/01/2010 1,005,000 35,803 1,040,803 0 6,923 6,923 G4/01/2011 0 0 0 195,000 6,923 201,923 10/01/2011 0 0 0 0 0 0 G4/01/2012 ' O 0 0 0 0 0 10/01/2012 0 0 0 0 0 0 04/01/2013 0 0 0 0 0 0 10/11/2013 0 0 0 0 0 0 04'J1/2014 0 0 0 0 0 0 E/01/2014 0 0 0 0 0 0 G4/01/2015 0 0 0 0 0 0 10/01/2015 0 0 0 0 0 0 G4/01/2016 0 0 0 0 0 0 10/01/2016 0 0 0 0 0 0 04/01/2017 0 0 0 0 0 0 10/01/2017 0 0 0 0 0 0 G4/01/2018 0 0 0 0 0 0 10/01/2018 0 0 0 0 0 0 04/01/2019 0 0 0 0 0 0 10/01/2019 0 0 0 0 0 0 TOTAL $ 19d15,000 12,891 0_85_ 32,312,085 6,770,000 4,451,592_ ll,22L592 I
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SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY Schedule 11 For the Fiscal Year Ended September 30,1995 Page 2 of 3 UTIllTIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FIDRIDA Utilities System Utilities System Revenue Certificates Refunding Revenue Certificates )
Series 1992 Series 1993 Payment Principal Total Principal Total Date Amount Interest Requirements Amount Interest Requirements 10/01/95 $ 185,000 430,528 615,528 540,000 561,226 1,101,226 04/01/ % 0 426,735 426,735 f
0 552,586 552,586 1 10/01/ % 195,000 426,735 621,735 555,000 552,586 1,107,586 04/01/97 0 422,494 422,494 0 542,874 542,874 10/01/97 200,000 422,494 622,494 575,000 542,874 1,117,874 04/01/98 0 417,944 417,944 0 531,949 531,949 1 10/01/98 215,000 417,944 632,944 595,000 531,949 1,126,949 I 04/01/99 0 412,730 412,730 0 519,751 519,751 10/01/99 225,000 412,730 637,730 620,000 519,751 1,139,751 04/01/2000 0 407,161 407,161 0 506,421 506,421 10/01/2000 230,000 407,161 637,161 655,000 506,421 1,161,421 04/01/2001 0 401,2 % 401,296 0 491,684 491,684 "
10/01/2001 245,000 401,2 % 646,2 % 680,000 491,684 1,171,684 04/01/2002 0 394,743 394,743 0 475,959 475,959 10/01/2002 270,000 394,743 664,743 710,000 475,959 1,18f 959 04/01/2003 0 387,520 387,520 0 459,096 459,096 10/01/2003 280,000 387,520 667,520 745,000 459,096 1,204,096 04/01/2004 0 379,820 379,820 0 441,216 441,216 10/01/2004 305,000 379,820 684,820 775,000 441,216 1,216,216 04/01/2005 0 371,280 371,280 0 421,841 421,841 10/01/2005 320,000 371,280 691,280 815,000 421,841 1,236,841 04/01/2006 0 362,000 362,000 0 401,466 401,466 10/01/2006 340,000 362,000 702,000 860,000 401,466 1,261,466 04/01/2007 0 352,140 352,140 0 379,536 379,536 10/01/2007 360,000 352,140 712,140 905,000 379,536 1,284,536 04/01/2008 0 341,700 341,700 0 356,006 356,006 10/01/2008 385,000 341,700 726,700 950,000 356,006 1,306,006 04/01/2009 0 330,150 330,150 0 331,069 331,069 10/01/2009 405,000 330,150 735,150 1,000,000 331,069 1,331,069 04/01/2010 0 318,000 318,000 0 304,819 304,819 10/01/2010 440,000 318,000 758,000 1,050,000 304,819 1,354,819 04/01/2011 0 304,800 304,800 0 277,256 277,256 10/01/2011 3,060,000 304,800 3,364,800 1,105,000 277,256 1,382,256 1 04/01/2012 0 213,000 213,000 0 248,250 248,250 10/01/2012 3,445,000 213,000 3,658,000 1,170,000 248,250 1,418,250 04/01/2013 0 109,650 109,650 0 219,000 219,000 10/01/2013 3,655,000 109,650 3,764,650 1,225,000 219,000 1,444,000 04/01/2014 l 0 0 0 0 188,375 188,375 10/01/2014 0 0 0 1,290,000 188,375 1,478,375 04/01/2015 0 0 0 0 156,125 156,125 -
10/01/2015 0 0 0 1,350,000 156,125 1,506,125 04/01/2016 l 0 0 0 0 122,375 122,375 '
10/01/2016 0 0 0 1,160,000 122,375 1,282,375 04/01/2017 0 0 0 0 93,375 93,375 ;
10/01/2017 0 0 0 1,205,000 93,375 1,298,375 !
04/01/2018 0 0 0 0 63,250 63,250 10/01/2018 0 0 0 1,245,000 63,250 1,303,250 04/01/2019 0 0 0 0 32,125 32,125 10/01/2019 0 0 0 1,285,000 32,125 1,317,125 TOTAL $ 14,7_60,_000_ 13,.136,854_ 27,8_96,854_ 23,065,000 16,794.2034 _ 39,859,034 28
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' SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY Schedule 11 For the Fiscal For the Fiscal Year Ended September 30,1995 Page 3 of 3 III'ILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FLORIDA Total Debt Service Requirements to Maturity l - All Certificates -
Payment Principal Total Date Amount Interest Requirements 10/01/95 $ 1,080,000 1,910,891 2,990,891 04/01/ % 640,000 1,886,033 2,526,033 10/01/ % 1,130,000 1,864,983 2,994,983
, 04/01/97 680,000 1,837,730 2,517,730 l l 10/01/97 1,185,000 1,815,070 3,000,070 04/01/98 730,000 1,785,245 2,515,245 10/01/98 1,245,000 1,760,610 3,005,610 04/01/99 780,000 1,727,973 2,507,973 10/01/99 1,315,000 1,701,485 3,016,485 04/01/2000 830,000 1,666,136 2,496,136 10/01/2000 1,385,000 1,637,776 3,022,776 04/01/2001 890,000 1,599,674 2,489,674 10/01/2001 1,465,000 1,569,079 3,034,079 04/01/2002 945,000 1,527,901 2,472,901 10/01/2002 1,555,000 1,494,826 3,049,826 l 04/01/2003 1,015,000 1,450,615 2,465,615 l 10/01/2003 1,640,000 1,415,090 3,055,090 04/01/2004 1,085,000 1,367,985 2,452,985 1 10/01/2004 1,740,000 1,329,610 3,069,610 '
04/01/2005 1,165,000 1,278,183 2,443,183 10/01/2005 1,845,000 1,236,980 3,081,980 04/01/2006 1,245,000 1,182,031 2,427,031 l 10/01/2006 1,960,000 1,137,997 3,097,997 04/01/2007 1,335,000 1,079,132 2,414,132 10/01/2007 2,080,000 1,031,913 3,111,913 04/01/2008 1,430,000 % 8,909 2,398,909 10/01/2008 2,210,000 918,038 3,128,038 l 04/01/2009 1,535,000 850,380 2,385,380 1
10/01/2009 2,345,000 795,774 3,140,774 04/01/2010 1,640,000 723,886 2,363,886 10/01/2010 2,495,000 665,545 3,160,545 04/01/2011 195,000 588,979 783,979 10/01/2011 4,165,000 582,056 4,747,056 04/01/2012 0 461,250 461,250 10/01/2012 4,615,000 461,250 5,076,250 04/01/2013 0 328,650 328,650 10/01/2013 4,880,000 328,650 5,208,650 04/01/2014 0 188,375 188,375 10/01/2014 1,290,000 188,375 1,478,375
- 04/01/2015 0 156,125 156,125 l 10/01/2015 1,350,000 156,125 1,506,125 04/01/2016 ,
0 122,375 122,375 i 10/01/2016 1,160,000 122,375 1,282,375 l 04/01/2017 0 93,375 93,375 10/01/2017 1,205,000 93,375 1,298,375 04/01/2018 0 63,250 63,250 l
10/01/2018 1,245,000 63,250 1,308,250 04/01/2019 0 32,125 32,125 10/01/2019 1,285,000 32,125 1,317,125 TOTAL $ 64,010 000_ 47,279,565 111,2_89,565_
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STATISTICAL SECTION Statistical tables diferfromfnancial statements because they usually cover more than onefscalyear and may present non-accounting data. These tables reject social and economic data andpnancial trends of the Utilities Commission, Oty ofNew Smyma Beach, Florida.
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SCHEDULE OF EXPENSES BY FUNCTION LAST TEN FISCAL YEARS September 30, U11LITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FIDRIDA NEW SMYRNA BEACH, FLORIDA l
Operating Required Transmission, Payments Distribution Administrative to City of Fiscal Total Production and Customer and New Smyrna i Year Expenses Expenses Collection Accounting General Beach l
1986 $ 21,451,417 10,599,170 2,044,229 565,057 2,581,264 1,209,499 1987 $ 24,012,890 11,918,184 2,430,767 614,138 2,856,752 1,301,571 i
l l 1988 $ 25,687,082 12,681,390 2,657,153 647,001 2,888,994 1,481,102 I 1989 $ 27,368,501 13,793,020 2,795,429 660,210 3,025,338 1,589,082 1990 $ 29,666,505 14,971,670 2,856,957 721,935 3,541,852 1,781,241 1991 $ 30,650,259 15,718,072 2,989,885 753,860 3,856,593 1,785,889 1992 $ 30,884,894 15,831,890 2,750,121 790,405 3, % 7,885 1,818,257 1993 $ 32,066,964 16,033,390 2,930,222 811,560 4,088,053 1,878,058 l 1994 $ 31,988,494 15,514,926 2,937,195 811,963 4,015,134 1,922,423 l l
1995 $ 33,634,761 15,736,225 3,433,468 808,391 4,300,729 1,945,294 I
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Table I Expenses Nonoperating Expenses Interest State . Depreciation Total and Other Total Utilities and Operating Debt Nonoperating Nonoperating Tax Decommissioning Expense Expense Expense Expenses 241,059 1,706,287 18,946,565 2,421,468 83,384 2,504,852 243,184 1,929,252 21,293,848 2,583,191 135,851 2,719,042 291,187 2,218,323 22,865,150 2,775,470 46,462 2,821,932 308,843 2,322,753 24,494,675 2,737,217 136,609 2,873,826 321,159 2,447,565 26,642,379 2,781,553 242,573 3,024,126 0 2,616,987 27,721,286 2,840,798 88,175 2,928,973 0 2,788,649 27,947,207 2,876,926 60,761 2,937,687 0 2,988,477 28,729,760 3,250,343 66,861 3,317,204 0 3,210,370 28,412,011 3,458,792 117,691 3,576,483 0 3,540,923 29,765,030 3,791,166 78,565 3,869,731 31
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SCHEDULE OF REVENUES BY SOURCE LAST TEN FISCAL YEARS September 30, LTTIllTIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FIERIDA Operating Revenues Pollution Water Total Fiscal Total Electric Water Control Reuse Operating Year Revenues System System System System Revenue l
1986 $ 21,204,306 15,743,029 2,735,021 1,754, % 3 0 20,233,013
, 1987 $ 23,575,256 17,714,974 2,925,916 1,831,044 0 22,471,934 i
f 1988 $ 25,269,603 19,467,476 3,050,904 1,924,385 0 . 24,442,765 1989 $ 27,431,708 20,841,500 3,184,987 2,390,120 0 26,416,607 1990 $ 29,103,071 22,362,293 3,305,107 2,444,813 0 ' 8,112,213 2
1991 $ 30,989,578 24,261,715 3,414,240 2,437,303 0 30,113,258 1992 $ 31,115,463 24,116,658 3,618,061 2,575,895 0 30,310,614 l 1993 32,292,107 24,880,055
$ 3,938,507 2,826,245 6,405 31,651,212 1994 $ 32,222,023 24,352,192 3,923,279 3,165,162 7,650 31,448,283 1995 34,253,351 25,612,207
( $ 3,972,005 3,168,544 382,696 33,135,452 1
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Table II l
Nonoperating Revenues l
1
' Total i Interest Other Nonoperating Earnings Income Revenue 818,337 152,956 - 971,293 665,119 438,203 1,103,322 668,355 158,483 826,838 818,148 1 % ,953 1,015,101 801,086 189,772 990,858 6 % ,413 179,907 876,320 595,302 209,547 804,849 370,830 270,065 640,895 495,971 277,769 773,740 t
762,200 355,693 1,117,899 t
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DEMOGRAPHIC STATISTICS Table III LAST TEN FISCAL YEARS September 30, UTIllTIES COM)llSSION, CITY OF NEW SMYRNA BEACH, FLDRIDA NEW SMYRNA BEACH, FIDRIDA New 5myrna County Beach's Per County School Estimated Capita Unemployment School Percent Fiscal Population Income Rate Enrollment Attendance Year (1) (3) (4) (5) (5) 1986 15,000 (2) 11,719 5.0% 4,123 %.0%
1987 15,344 13,895 4.9% 4,219 %.0%
1988 15,647 14,494 4.4% 4,240 94.0 %
1989 17,266 15,266 4.5 % 4,445 95.0 %
1990 18,600 (6) 15,648 5.6% 4,488 %.0%
1991 16,543 (3) 16,122 7.3% 4,663 95.0 % l 1992 17,084 (3) 16,635 8.3 % 4,852 %.0%
1993 17,231 16,706 6.6% 5,009 %.0%
1994 17,989 N/A 6.4% 5,053 96.0 %
1995 17,853 N/A 4.9% 5,348 %.0%
l (1) Obtained from University of Florida, Bureau of Economics and Bus' mess Research.
(2) Estimated, actual amounts not available l (3) Obtained from U.S. Department of Commerce, Bureau of Economic Analysis. I (4) Obtained from State of Florida, Department of Labor and Employment Security (Post 1993 data not avslable)
(5) Obtamed from Volusia County School Board - includes grades K-12.
l (6) Obtamed from City of New Smyrna Beach 1990 Comprehensive Land Use Plan.
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1
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS (4) Table IV LAST TEN FISCAL YEARS September 30, UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FIDRIDA NEW SMYRNA BEACH, FIDRIDA Savings Dollar and Property Number Value Bank loan Assessed of of Deposits Deposits Value Fiscal Permits Construction (2) (2) (3)
Year (1) ($000's) ($000's) ($000's) ($000's) 1986 2,286 26,096 192,712 251,404 711,561 1987 2,501 26,927 185,428 306,928 763,718 1988 2,246 30,640 190,477 284,244 834,038 1989 2,502 23,382 244,312 228,568 894,694 l
1990 2,416 27,492 310,746 285,541 975,234 l i
1991 2,333 22,310 379,110 300,960 1,030,656 i 1992 2,391 18,909 426,878 317,964 1,094,024 1993 2,421 28,848 331,036 331,636 1,117,205 1994 2,266 18,103 397,165 (5) 303,670 (5) 1,149,931 1995 2,177 33,581 309,509 234,524 (6) 1,199,523 (1) Obtained from City of New Smyrna Beach Building Department.
(2) Obtained from inquiry of officials of banks and savings and loan associations.
(3) Obtained from Volusia County Finance Department.
(4) The above data is related exclusively to area within the municipal limits of the City of New Smyrna Beach.
(5) Deposit information aAer 1993 does not include deposits from bank and savings and loan branches which are located outside the municipal boundaries of the City of New Smyrna Beach. Prior to 1994, branch deposits were based on regional banking / savings and loan center totals which included branches located outside of the City. Prior year data cannot be easily segregated due to the large number of banking changes / mergers
' that have occured during the last ten years.
(6) Deposit information after 1994 reflects a partial shifting of deposits to a new branch office located outside the municipallimits of the City of New Smyrna Beach.
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SCHEDULE OF INSURANCE IN FORCE Table V September 30,1995 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FLORIDA Coverage and Policy Policy Insuring Company Number Period Details of Coverage Liability Limits Comprehensive General Liabinty:
Penco/ITT Hartford 21CESQC1261 12/01/94 Combined bodily injury $2,000,000 with $5,000 12/01/95 and property damage deductible Business Auto:
Penco/ITT Hartford 21UESQC1262 12/01/94 L.iability $1,000,000 bodily injury and 12/01/95 property combined Comprehensive Actual cash value less
$250 deductible Collision Actual cash value less
$500 deductible Uninsured Motorist $100,000 No fault Statutory Business Property:
American Guarantee and Liability CPP330867009 12/01/94 Buildings and contents $16,623,428 with $10,000 Insurance Co. 12/01/95 deductible (agreed value)
Valuable papers / records $100,000 with $500 deductible Contractors equipment $588,711 with $2,500 deductibl Computer equipment $160,000 with $500 deductible Crime:
Aetna Casualty and Surety Co. 35BY100725570 12/01/94 Employee crime $100,000 aggregate, $1,000 BCA 12/01/95 deductible Money and securities $60,000 Counterfeit currency $5,000 Depositors' forgery $100,000 Boiler and Machinery:
Great Northern Insurance Co. 7827-44-32 09/30/95 Breakdown due to acciden $5,000,000 with $10,000 09/30/96 deductible Flood Insurance:
Capital Assurance Company,Inc. 366-2016745 09/02/95 Building $771,000 09/02/96 Contents $1,000,000 Deductible $10,000 Nuclear Energy Damage: '
, American Nuclear Insurance and 94P147 10/09/94 Primary property $500 million Mutual Atomic Energy Liability 10/09/95 Underwriters and Nuclear UX94-015&X94015 11/15/94 Excess property $1.400 billion i Insurance Ltd. 11/15/95 (Excess of $500 million)
('Ihese amounts represent the NF195&MF91 01/01/95 Primary liability $200 million totalinsurance coverage for 01/01/96 Florida Power Corporation's Crystal NS347&MS65 12/31/94 Suppliers and transporters $200 million River nuclear plant, of which the 12/31/95 liability Commission owns a 0.05608% N35&M35 01/01/95 Secondary financial $30 million per occurrence undivided ownership interest) 01/01/96 protection NW103&MW62 01/01/95 Master Workers Torts $200 million aggregate 01/01/96 Public Official / Employee i.iabiity:
Corregis Insurance Organizations $24-202131-7 07/28/95 Liability $1,000,000 Retentions-$10,000 07/28/96 per loss Workers' Compensation:
Florida Municipal Self-Insurers' 109 10/01/94 Statutory coverage Statutory Fund 10/01/95 Employer's liability $100,000 Pollution Liability: 1 Florida Petroleum Liability insurance FPL - 5899089 07/10/95 Liability - fuel spillage $2,000,000 aggregate 07/10/96 $500 deductible 36
+
TEN LARGEST ELECTRIC CUSTOMERS Table VI September 30,1995 UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FIDRIDA NEW SMYRNA BEACH, FIDRIDA Kilowatt Hour Sales Revenues Billed Percent Percent (kWh) of of (000's) Total Amount Total
- 1. Bert Fish Medical Center........................ 5,018 1.68 % $374,502 1.51 % ,
- 2. I Publix Food Store (#2019100).................. 2,862 0.% % 214,650 0.86 %
- 3. Publix Food Store (#2033500).......... ...... 2,709 0.91 % 200,508 0.81 %
- 4. Utilities Commission (Pollution plant)......... 2,643 0.88 % 199,231 0.80 %
- 5. Board of Public Instruction (New Smyrna Beach High School)... ........ 2,444 0.82 % 197,602 0.79 %
1
- 6. Wal-Mart (#01-1079).......... ........... ... .. 2,121 0.71 % 162,471 0.65 %
- 7. Food Lion (#829)... .... . . ..... .......... ...... .. 2,070 0.69 % 154,920 0.62 %
- 8. Winn Dixie Store (#2302)......... .............. 2,033 0.68 % 150,204 0.60 %
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- 9. Board of Public Instmetion (New Smyrna Beach Middle School).......... 2,017 0.67 % 180,878 0.73 % l
- 10. K-M art . , . . . . . . . . . . . . . . . . . . 2,012 0.67 % 153,024 0.62 %
Totals . . .. . . . . .. . . . .. . . .. . . . . . . . .. . . . . . . . . _.25E9_ 8.67 % $1.987,990 7.99 %
37
. - . .. _ . _ _ - _ - - . , -- .... - , _ _ . _ . . . _ _ ..a.a -- - - - . , . - . . . _ .- -- - -
l j TEN LARGEST WATER CUSTOMERS September 30,1995 Table VII l l l UTil.lTIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA NEW SMYRNA BEACH, FLORIDA 1
l Consumption Revenues Billed Percent Percent Gallons - of of (000's) Total Amount Total
- 1. Sea Woods Homeowners' Association........... 20,877 1.61 % $33,516 0.83 %
- 2. Board of Public Instruction......................... 20,456 1.58 % 41,912 1.04 % j l 3. Federal Housing Authority... ..................... 17,597 1.36 % 31,890 0.79 %
i
- 4. Bert Fish Medical Center........ ... . ....... .... 16,683 1.28 % 27,127 0.67 %
- 5. The Inlet Condominium. . . . . . . . . .. .. . . .. . . . . . . . . . . . . 11,142 0.86 % 16,027 0.40 %
- 6. Oceanview Nursing Home... ................... 11,035 0.85 % 17,303 1 0.43 % <
- 7. Islander Beach lodge............ ... ...... ..... . 10,651 0.82 % 20,180 0.50 %
- 8. Errol By The Sea Condondnium................. 10,137 21,048 l 0.78 % 0.52 %
- 9. Pelican Condominium Association............... 9,273 0.71 % 15,038 0.37 % !
- 10. Cedar Dunes Homeowners' Association........ 8,991 0.69 % 15,412 0.38 % !
Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . ._136,842 10.54 % 5.93 %
$239Mi3_
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SCllEDULE OF REVENUE CERTIFICATE COVERAGE LAST TEN FISCAL YEARS Table Vill September 30, I UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORID A l NEW SMYRNA BEACH, FLORIDA l
1995 1994 1993 1992 1991 Gross Revenue Per Certificate Resolution:
Operating revenues . ....................... . . . .. $ 33,135,452 31,448,283 31,651,212 30,310,614 30,113,258 Interest and other income (excluding construction fund interest earnings) . .. .. . 1,117,899 773,740 640,895 804,849 876,320 Connection fees . . . . . . . . . . . . . . . . . . . . . . . . . . 798,090 727,054 1,521,443 761,039 756,866 Assessment collections ....... .. ...... .... . .... 3,106 (301) 5,576 13,152 36,239 Gross revenue per certificate resolution ..... 35,054,547 32,948,776 33,819.126 31,889,654 31,782,683 Expenses Per Certificate Resolution:
Operating expenses . ........... ... ..... . ...... 29,765,030 28,412,011 28,729,760 27,947,207 27,721,286 loss: Depreciation expense ....................... (3,337,966) (3,179,382) (2,889,647) (2,675,521) (2,495,369)
Required payments to the City . .. ... (1,945,294) (1,922,423) (1,878,058) (1,818,257) (1,785,889)
Expenses per certificate resolution . 24,481.770 23,310,206 23,962,055 23,453,429 23,440,028 Income available for debt service .. ......... $__1_0,572,7_Z7_ 9,638J70_ __9,851071 8.436,225 8.342,651 Annual Debt Service Requirements:
Principal .. . ............ .....................$ 1,680,000 1,595,000 1,015,000 1,080,000 1,020,000 Interest (less accrued interest) (1) .. ........... . 3,841,252 3,923,144 3,780,962 3,266,873 3.5*0.972 Annual debt service requirements . . ......$ 5.521,252_ 5,518,1_44_ 4.79 1 962_ 4.M6,871 4,170.9.72 Coverage ratio (Times) . ...... .... ... .... . 1,91 1.71 2.06_ 1,91 1.81 1990 1989 1988 1987 1986 I Grcos Revenue Per Certificate Resolution:
Operating revenues ..... ............... ..... ..... $ 28,112,213 26,416,607 24,442,765 22,471,934 20,233,013 Interest and other income (excluding construction fund interest camin 990,858 1,008,728 820,417 813,360 876,820 Connection fees ....... .. . .... ...gs) . ... .... 1,001,968 806,571 756,976 1,180,590 958,390 Assessment collections .... ... . . .... . . .. .... 45,828 69,750 71,284 101,891 190,943 Gross revenue per certificate resolution ..... 30,150,867 28,301,656 26,091,442 24,567,775 22,259.166 l
i Expenses Per Certificate Resolution:
Operating expenses ... .... ....... .... ...... ..... !
26,642,379 24,494,675 22,865,150 21,293,848 18,946,565 I Less: Depreciation expense .......... . . . . . . . (2,328,833) (2,212,241) (2,119,675) (1,885,382) (1,674,114) 1 Required payments to the City .. . ... . (1.781,24!) (1,589,082) (1,481,102) (1,301,571) (11209,499) l Expenses per cestificate resolution . ... . _ 22,532,305 20,693,352 19,264,373 18,106,895 16,062,952 l
Incoma available for debt service ... .... .... $.__1618,562 7,608.304_ 6,827.062_ 6A60,BS0_ J,196,2M_ !
Annual Debt Service Requirements:
Principal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 805,000 765,000 725,000 l
515,000 495,000 l Interest (less accrued inte' rest) (1) ... ........ .. 2,553,281 2,597,110 2,637,382 2,660,317 2,362,465 l
Annual debt service requirements . ...... .. $ 3,158,28L __AM2.110_ ___1362J82_ 3.17L111 _2,8514.65_ . I Coverage ratio (Times) .... .. .... . ..... . 2.21 101 l
__.2.26_
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l (1) Interest expense for the fiscal years ended September 30,1993,1992, and 1990, is stated net of $613,763, $222,792 and $783,778 respectively, in interest expense which was funded from the proceeds of the issuance of revenue certificates.
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SUPPLEMENTAL AUDIT REPORTS 1
l l 1 BRENT MILLIKAN & COMPANY, PaA.
CERTIFIED PUBLIC ACCOUNTANTS INDEPEUDENT AUDITORS' REPORT ON COMPLIANCE willi LAWS AND REGULATIONS BASED ON AN AUDIT OF FINANCIAL FTATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS l
L To the Honorable Chairman and Commissioners Utilities Commission, City of New Smyrna Beach, Florida
! New Smyrna Beach, Florida l We have audited the financial statements of Utilities Commission, City of New Smyrna Beach, Florida, as of and for the year ended September 30,1995, and have issued our report thereon
! dated November 10,1995.
l l
We conducted our audit in accordance with generally accepted auditing standards and Government l Auditing Standards, issued by the Comptroller General of the United States. Those standards l require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. l l
l Compliance with laws, mgulations, contracts, and grants applicable to Utilities Commission, City l
. of New Smyrna Beach, Florida, is the responsibility of Utilities Commission, City of New '
Smyrna Beach, Florida's management. As pan of obtaining reasonable assurance about whether the financial statements am fme of material misstatement, we performed tests of the Commission's l compliance with such provisions of laws, regulations, contracts, and grants. However, the l
objective of our audit of the financial statements was not to provide an opinion on overall compliance with such pmvisions. Accordingly, we do not express such an opinion.
The msults of our tests disclosed no instances of noncompliance that are required to be reponed herein under Government Auditing Standards.
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l This repon is intended for the information of the Utilities Commission, management, and applicable federal and state regulatory bodies. This restriction is not intended to limit the distribution of this repon, which is a matter of public record.
h .,
New Smyrna Beach, Florida November 10,1995 40 l
l 20s MAGNOLIA ST.
- HEW SMYRN A BEACH, FL 32168 + (904) 427-1333 + FAX (904) 427-5823 MEMBLR: Anwrican Insmute of Certifwd Public Ascountants and AICPA Private Companies Practice fwction l
1
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4'. ( t s BRENT MILLIKAN & COMPANY, P.A.
CERTIFIED PUBLIC ACCOUNTANTS INDEPENIENT AUDITORS' RFPORT ON INTERNAL CONTROL .
STRUCTURE RELATED MATTERS NOTED IN A FINANCIAL l STATEMENT AUDIT CONDUCTED IN ACCORDANCE WITII GOVERNMENTAUDITING STANDARDS l
i To $a Honorable Chainnan and Commissioners Utilities Commission, City of New Smyrna Beach, Florida New Smyrna Beach, Florida We have audited the financial statements of Utilities Commission, City of New Smyrna Beach, Florida, as of and for the year ended September 30,1995, and have issued our report thereon dated November 10,1995.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
The management of Utilities Commission, City of New Smyma Beach, Florida, is responsible for establishing and maintaining an internal control stmeture. In fulfilling this responsibility, estimates andjudgements by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structum are to pmvide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition and that transactions are executed in acconlance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of l inherent limitations in any internal contml structure, errors or irregularities may nevertheless i
occur and not be detected. Also, pmjection of any evaluation of the structure to future periods l
is subject to the risk that procedures may become inadequate because of changes in conditions or '
l that the effectiveness of the design and operation of policies and pmcedures may deteriorate.
In planning and performing our audit of the financial statements of Utilities Commission, City of l New Smyrna Beach, Florida, for the year ended September 30, 1995, we obtained an '
understanding of the intemal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and pmcedures and whether they have 41 20s MAGNOLIA ST. + NEW SMYRNA BEACH, FL 32168 + (904) 4271333 + FAX (904) 427-sS23
' MEMBER:Amencen Institute of Certified Putilic Accountants and AICPA Private Compenses Practice bectmn
To the Honorable Chairman and Commissioners 1 j
Utilities Commission, City of New Smyrna Beach, Florida i
Page 2 of 2 been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide an opinion on the internal control stmeture. Accordingly, we do not express such an opinion.
i Our consideration of the internal control stmeture would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of one or more of the internal control stmeture elements does not reduce to a mlatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be a material weakness as defined above.
! However, we noted other matters involving the intemal control stmeture and its operation that we have reported to the management of Utilities Commission, City of New Smyma Beach, Florida, in a separate letter dated November 10,1995.
This report is intended for the information of the Utilities Commission, management, and applicable federal and state regulatory bodies. This restriction is not intended to limit the i
distribution of this report, which is a matter of public record.
)
i New Smyrna Beach, Florida November 10,1995 l
1 4,
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BRENT MILLIKAN & COMPANY, P.A.
CERTIFt.ED PUBLIC ACCOUNTANTS MANAC9ENT COMMENTS To the Honorable Chairman and Commissioners Utilities Commission, City of New Smyrna Beach, Florida New Smyrna Beach, Florida l
We have audited the financial statements of Utilities Commission, City of New Smyrna Beach, Florida, as of and for the year ended September 30,1995, and have issued our report thereon dated November 10,1995.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the I financial statements are free of material misstatement.
In planning and performing our audit of the financial statements of Utilities Commission, City of New Smyrna Beach, Flo.-ida, for the year ended September 30, 1995, we considered the Commission's internal control stmeture in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assumnce on the internal control stmeture. As a result, no weaknesses in procedures and controls came to our attention which are required to be retx)rted.
We are submitting for your consideration the accompanying recommen,dations designed to help Utilities Commission, City of New Smyma Beach, Florida, improve the intemal control structure and achieve operational efficiencies (in Exhibit A attached). We have also tested your operations for compliance with applicable laws and are providing additional comments required to be included by reason of the Rules of the Auditor General of the State of Florida. After you have l received our comments, we will be pleased to discuss funher any questions you may have.
This repon is intended for the information of the Utilities Commission, management, and i applicable federal and state regulatory bodies. This restriction is not intended to limit the distribution of this report, which is a matter of public record.
t New Smyma Beach, Florida December 15,1995 l
43 l 205 MAGNOLIA ST.
- NEW SMYRNA BEACH, FL 32168 * (904) 427-1333
- FAX (904) 427-5823 mn Am, nun io.n . orc,nir o Poi,Hc Anoununts and AICFA Pnnw Companies Puchu Subun l l
l
i Exhibit A
! Management Comments l Page 1 of 3 l Prior Year Findings and Recommendations l The recommendations made in the preceding year were appropriately implemented and/or resolved to our satisfaction.
Current Year Findings and Recommendations -
The following items are present for your consideration.
Nuclear Plant Decommissioning During 1995, officials of Florida Power Corpor.' tion conducted a study to more precisely estimate the anticipated future costs to decommission its Crystal River Unit #3 Nuclear Generating Facility (of which the Utilities Commission owns a 0.5608% undivided working interest). Pursuant to their report dated February 20,1995, it was determined that I their previous decommissioning cost estimates were substantially below the revised cost l
' estimates it now believes will be incurred to fully decommission the facility. Subsequent to the release of that report, officials of the Florida Public Service Commission met, considered the findings of the report, and ordered that procedures be implemented to require the funding of an operating reserve sufficient to finance the anticipated l decommissioning costs. As a result of the FPSC's formal actions, the Utilities 3 Commission (via their ownership of a working interest in the FPC generating plant) is required to provide for the advance funding of their share of these future costs.
l 1
l In prior years, the Commission voluntarily provided for the advance funding of a portion l o rtheir pro-rata share of CR-3's estimated decommissioning costs even when actual funding of the costs was not required. Since the revised cost estimates have indicated that the Commission's future annual funding requirements will be substantially greater than amounts anticipated in prior years, and since steps have been formalized by the FPSC to make these annual funding requirements mandatory for all participants, it is apparent that procedures will need to be implemented to provide for the estimated prior years' funding shortfalls along with the 1996 mandatory funding requirement.
In order to properly plan for and budget future funding requirements for this estimated liability, we strongly recommend that the Commission obtain the results of the Standard 1
Order, scheduled to be issued by the Florida Public Service Commission on May 7,1996
[ Dockets No. 941350-H and 941352-H], to determine if there will be any revisions in the estimates known at this time and that the Commission continue to monitor Florida Power Corporation's actions in submitting rate case cost studies in the future, t
N
l Exhibit A Management Comments (Continued)
Page 2 of 3 Contributions in Aid of Constnterion During the current year, the estimated cumulative costs associated with the nonreciprocal transfers of utility property (originally constmeted by community developers under '
development agreements which require the Commission to take over the utility facilities subsequent to their constmetion) were capitalized as contributed components of utility l plant. These costs were identified since pmcedures were implemented to formally track these types of contributions subsequent to the adoption of Financial Accounting Standards j Board Statement No.116, Accounting For Contributions Received and Contributions '
Made, (which does not become effective until the FY1996 fiscal year). As a result of the i early implementation of these pmcedures, the capitalization value of utility piant will ;
! continue to be greater than its original cost, which increases future depreciation expense '
and the amounts which must be recovered fmm utility rates to offset the increased "non-cash" expenditures created from the nonreciprocal transfers.
t In prior years, similar contributions of utility plant property conveyed to the Commission were not significant in relation to the organization as a whole and were, therefore, not l capitalized. However, due to the significance of the current year utility plant additions, i all costs associated with assets constructed under developer agreements were appmpriately t capitalized by the Commission. >
i We believe tnat formal steps should be considered to monitor all outstanding development agreements and external development pmject status reports for the purpose of identifying ,
the effective service dates of all completed construction projects with utility plant assets which are expected to be transferred to the Commission upon completion. Such a system i could help identify all potential projects, the value of the donated utility plant, and the l effective date of the nonreciprocal transfer of the asset to the Commi aon (the effective date the assets are placed in service for capitalization purposes). !
Florida Department of Bankine and Finance Financial Re_n ort The financial report required to be filed with the Florida Department of Banking and Finance pursuant to Section 218.32 (1)(b), Florida Statutes, has not yet been completed by the Commission's oversight unit (City of New Smyrna Beach, Florida, Unit ID#251) at the time of submitting this ,
report. Upon completion of the financial report, we will compare the report with the financial audit ,
report and state our findings, if any, in an amended or supplemental management letter.
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Exhibit A Management Comments (Continued)
Page 3 of 3 Determination of Financial Fmergency - Section 218.503(1). F.S.
Nothing came to our attention which indicated that the Utilities Commission, City of New Smyrna Beach, Florida, is, or during the year ended September 30,1995, was in a state of financial emergency as a consequence of conditions described in Section 218.503(1), F.S.
The Renodina Entity The Utilities Commission, City of New Smyrna Beach, Florida, was created, established and incorporated under Chapter 67-1754, Laws of Florida, Special Acts of 1967 (H.B.1669) which l amended the Charter of the City of New Smyrna Beach, Florida, to create the Utilities l
Commission, and is further govemed by state and local laws and mgulations. The mport.ing entity ;
includes all those separately administered organizations / departments that are under the control of or dependent on the Commission. Control or dependence is determined on the basis of budget l adoption, taxing authority, funding and appointment of the respective governing board in
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accordance with Government Accounting Standards Board Statement Number 14, The Financial Reporting Entity. Based upon the application of the above mentioned criteria, there are no !
potential component units of the Commission.
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