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Audit Report - 1988-1989 ~~ ~- CITY OF ~aoatic $'eac~i - ~feytida FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT ' SEPTEMBER 30, 1989 1 1 1 CITY OF ~4tla.tilc b'eaek - ~laatda P. o. Box x6 ATLANTIC BEACH. PLORB)A 38233 TELEPHONE 1901 2193396 February 23, 1990 M E M O R A N D U M TO: Kim D. Leinbach, City Manager FROM: Harry E. Royal, Pinance Director In response to the auditors' management letter on internal control, I would like to offer the following comments: Internal Control Neaknesses: 1. Customer Accounts Receivable and Deposits This weakness has existed for many years and is directly related to our utility billing software and limited staff in the Pinance Department. I have noted the auditors' recommendation concerning data processing applications and, as you know, have hired a computer consultant to analyze the City's options with regard to both computer software and hardware. 2. Compliance with Gran[ Contracts The reimbursement error noted by the auditor 1s the firs[ error of this type brought [o my attention. In the future, I would recommend designating the department head who Ss most directly affected by the grant ae the individual responsible for monitoring grant compliance. Compliance Violations: 1. I believe the personnel violations of [he type noted by the auditor occur infrequently, but the Personnel office of [he City will continue [o monitor [he employees leave records to prevent future occurrences. ~~~S:4, Ocher Recommendations: The other zecommendations the auditors made in chelr management letter have been reviewed and passed an to the appropria [e department or employee, where applicable. I will see that each recommendation is given due consideration. Sincerely, rry ~1 Pinance Director HRR/dst. n~,~S~~ 1 1 1 a PINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT CITY OF ATLANTIC BEACH ATLANTIC BEACN, FLORIDA SEPTElflfER 30, 1989 1 1 FINANCIAL STATEFffiiTS AND INDEPENDENT AUDITORS' REPORT CITY OF ATLANTIC BEACH ATLANTIC BEACN, FLORIDA SEPTEMBER 30, 1989 CONTENTS PAGE INDEPENDENT AUDITORS' REPORT 1 GENERAL PURPOSE FINANCIAL STATEMENTS Combined Balance Sheet - A11 Fund Types and Account Groups 2 - 3 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types and Expendable Trust Funds 4 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Governmental Fund Types S - 6 Combined Statement of Revenues, Expenses and Changes in Retained Earnings/Fund Balance - All Proprietary Fund Types and Pensfon Trust Fund 7 Combined Statement of Changes in Financial Position - A11 Proprietary Fund Types and Pensfon Trust Fund g Notes to Financial Statements q _ 27 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES General Pund Schedule of Expenditures - Budge[ and Actual 28 - 29 Special Revenue Funds Combining Balance Sheet 30 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance 31 Enterprise Funde - Proprietary Pund Types Combining Balance Sheet 32 - 33 Combining Statement of Revenues, Expenses and Changes in Re [wined Earnings 34 - 35 Combining Statement of Changes in Pinancial Position 36 - 37 Fiduciary Funde Combining Balance Sheet 38 FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT CITY OP ATLANTIC BEACR ATLANTIC BEACH, FLORIDA SEPTEMBER 30, 1989 CONTENTS (Concluded) PAGE STATISTICAL SECTION {Unaudited) ' Pension Revenues By Source and Expenses By Type 39 Computed Penalon Contribution Comparative Schedule 40 ' Analysis of Pension Funding Progreso 41 w INDEPENDENT AUDITORS' REPORT ' Honorable lfayor, City Commission and City Manager City of Atlantic Beach Atlantic Beach, Florida Ne Gave audited the accompanying general purpose financial statements of the City of Atlantic Beach, Florida, as of and for the year ended September 30, ' 1989, as listed 1n the accompanying [able of contents. These general purpose financial statements are [he reaponslb ility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and G_overnmenc Auditing Standards, issued by the Comptroller General of the ' United States. Those standards require [hat we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of macertal misstatement. An audit includes examining, on a teat basis, evidence supporting the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe [hat our audit provides a reasonable basis for our opinion. ' In our opinion, the general purpose Financial statements referred to above present fairly, in all material respects, [he financial position of [he City of Atlantic Beach, Florida, a[ September 30, 1989. and the results of its operations and Che changes in financial position of the proprietary fund types and similar trust funds for the year then ended, in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on [he general purpose financial statements taken as a whole. The combining and individual fund statements and schedule listed in the foregoing table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the ' auditing procedures applied in our audit of the general purpose financial sta temen[s and, Sn our opinion, is fairly stated in all material respects when considered in relation co the general purposes financial statements taken as a whole. The financial statements of the City of Atlantic Beach, Florida, ae of September 30, 1988, were audited by other auditors whose report dated January 16, 1989 expressed an unqualified opinion on the general purpose financial statements, and the combining and individual fund s[atementa and ' schedules. Cemi(ied Public A<courdanls P.O. Box 23999 • i22 N.E. 1s151reet • Gainesville, Florida 32602 • (90913762467 Laurel Ridge Prolessional Center • 2347 iE. 17th Street • Ocala, florida 32671 •1904) ]72-IBR v04 MelropoM1lan Blvd., Suite 7 • Tallahassee, Florida J230B • 190113850554 MI W145 U4 ANt41CAV AVO II W IOA I.YSIn U!(f (H C[4 tl,l(O W111C MC W NIANIS MlMat4 nl 4M14~U41\Stl nil! M CIR Onto NanC ACCW V NV rf MryAI(CONMNOf A D f ( C. MACnCf HCIgYf w 1 r f Honorable Mayor, City Commission and City Manager City of Atlantic Beach Atlantic Beach, Florida INDEPENDENT AUDITORS' REPORT (Concluded) The scat istical section, ae listed 1n the foregoing table of contents, has not been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, accordingly, ve ezpreae no opinion. December 20, 1989 Gainesville, Plorida _I_ COMBINED BALANCE SNEET ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, l9 9 CITY OF ATLANTIC BEACH, FLORIDA ASSETS Cash and Investments Cash in Eacrov Accounts Receivable Inventories Due From Other Governments Due From Other Funds Deposits Prepaid Expenses Other CurrenC Aeaets Restricted Assets: Cash and Investments Invested Cash Gith Fiscal Agent Conatruc[ion in Progress Property, Plant and Equipment - Net Intangible Asset - Right to Future Revenues - Net Amount Available in the Debt Service Pund For Payment of Long-Term Debt Amount to be Provided Pot Payment of Long-Term Deb[ Amount to be Provided Por Payment of Long-Term Portion of Compensated Absences TOTAL ASSETS GOVERNMENTAL FUND TYPES SPECIAL DEET CAPITAL GENERAL REVENUE SERVICE PROJECTS 800,835 ;692,689 ;33,529 ;3,856,654 308,014 290,618 52,338 40,702 137,079 5,000 49,132 f L.643.O1b ~ 3~3Q1 317 S?2 See accompanying notes. _2- 1 r PROPRIETARY FIDUCIARY FUND TYPES FUND TYPES ACCOUNT GROUPS TRUST GENERAL GENERAL TOTALS AND LONG-TERN FIId'D (MEMORANDUM ONLY) ENTERPRISE AGENCY OBLIGATIONS ASSETS 1989 1988 2,120,455 ; 2,319,362 S 9,823,524 ; 5,325,911 308,014 0 188,974 479,592 425,205 38,376 90,714 92,783 64,705 53,179 158,586 84,298 Sl,lll 188,190 8,418 5,000 5,000 49,132 109,630 9,753 9,753 10,034 2,424,554 2,424,554 1,711,858 400,448 400,448 186,073 595,141 j 6,130 601,271 246,462 12,441,087 2,874,599 L5,315.686 14,461,608 441,667 441,667 0 S 33,529 33,529 28,665 4,873,879 4,873,879 1,060,495 103,780 103,780 89,182 518.776.271 S 2.372.541 S 5.911.188 52.880.729 335.307.319 323.845.622 (Continued) See accompanying notes. _2_ COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 1989 CITY OF ATLANTIC BEACH, FLORIDA (Concluded) LIABILITIES Accounts Payable and Accrued Liabilities a Due to Other Funds Curren[ Portion of Revenue Bonds Payable Deferred Grant Reveaues Curren[ Liabilities (Payable From Restricted AaseCS): Revenue Bonds Payable Accrued Interesc Payable Revenue Bands Payable - Long-Term Portion Deposits Deferred Compensation Installment Notes General Obligation Bonds Notes Payable - Gulf Breeze Accrued Compensated Absences - Long-Term GOVERNMENTAL £UND TYPES SPECIAL DEBT CAPITAL GENERAL REVENUE SERVICE PROJECTS 105,706 ¢ 8.002 130,352 5,000 S 16,032 129,077 TOTAL LIABILITIES 110,708 L38,354 ¢ 0 145,109 FOND EQUITY Contributed Capital Investment in General Fixed Aeaets Retained Earnings: Reserved For Renewals and Replacements Reserved For Deb[ Service Other Reserves Unreserved ReCaiaed Earnings Fund Balances: Reserved Por Payment of Long-Term Cebt Reserved Por Prepaid Expenses Reserved For Inventories Reserved For Police Training and Investigations Reserved For Retirement Other Reserves Unreserved Fund Balances TOTAL FUND EQUITY TOTAL LIABILITIES AND FUND EQUITY 83,606 148,308 33,529 49,132 52,336 151,880 446,729 3,515,213 1,195.352 196,332 1,532,308 595,037 33,529 3,711,545 ¢I.643.016 ¢733.391 ¢33.529 ¢3.856.654 See accompanylag notes. -3- 1 S i 1 r 1 PROPRIETARY FIDUCIARY FUND TYPES FUND TYPES ACCOUNT GROUPS TRUST GENERAL GENERAL TOTALS AND LONG-TERN FIXED (MElfOP.ANDUH ONLY) ENTERPRISE AGENCY OBLIGATIONS ASSETS 1989 1988 $ 334,645 ; 450 ; 456,835 ; 380,447 51,111 188,190 8,418 0 3,368 130,352 0 70,000 70,000 60,000 50,123 50,123 27,338 4,483,700 ; 759,263 5,242,963 4,667,885 280,259 285,259 230,999 77,201 77,201 66,719 396,145 396,145 0 192,000 192,000 217,000 3.560,000 3,560,000 0 103,780 103,780 89,182 5,269,838 77,651 5,011,186 ; 0 10,752,848 5.751,356 6,123,866 6,123,866 5,067,915 2,880,729 2,880,729 2,727,326 2,170,376 2,170,376 1,383,055 336,240 336,240 295,214 227,263 227,263 132,025 4,648,688 4,648,688 4,835,695 265,443 28,665 49,132 109,630 52,338 48,512 1,667 1,667 5,614 2,293,223 2,293,223 1,888,636 4,113,822 434,213 1,391,684 L,137,760 13,506,433 2,294,890 0 2,880,729 24,554,471 18,094,266 318.776.271 f 2.372.541 S 5.011.188 52.880.7 535.307.319 323.845.622 See accompanying notes. -3- i 1 1 REVENUES Taxes Licenses and Permits Stale Shared Revenues Other Intergovernmental Revenues Charges For Services Fines and Forfeitures Interest Income Miscellaneous Revenue TOTAL REVENUES EXPENDITURES Current General Government Public Safety Physical Environment Transportation Culture and Recreation Internal Services Deb[ Service: Principal Retirement Interest and Fiscal Charges Capital Outlay (TOTAL EXPENDITURES) EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURf,ES (USES) Loan Proceeds Proceeds on Installment Obligations (Loan Financing Coste) Operating Transfers In (Operating Transfers Out) TOTAL OTNER FINANCING SOURCES (USES) EXCESS (DEFICIENCY) OP REVENUES AND OTNER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES PUND BALANCES, BEGIb"NING OP YEAR PUFD BALANCES, EbD OP YEAR See accompanying notes. -4- 1 1 FIDUCIARY GOVERNMENTAL FUND TYPES FUND TOTALS SPECIAL DEBT CAPITAL EXPENDABLE (41E1fORANDUM ONLY) GENERAL REVENUE SERVICE PROJECTS TROST 1989 1988 $1,153,940 f 40,232 S 1,194,172 $ 1,164,956 159,106 0 159,106 519.799 917,081 f 344,628 0 1,261,909 899,512 12,115 73,989 0 86,104 16,510 2,712 0 0 2,712 4,620 76,300 0 0 ; 11,309 67,609 107,458 121,245 8,901 3,285 S 400,043 236 533,710 100,319 28,357 0 0 0 2,250 30,607 56,723 2,470,856 427,718 43.517 400,043 13.795 3.355,929 2,869,897 733,279 2,362 0 0 0 735,641 694,780 1,465,800 0 0 0 17,742 1,483,542 1,263,279 0 82,211 0 0 0 82,211 0 454,377 0 0 0 0 454,377 401,439 119,113 28,829 0 0 0 147,942 103,788 50,575 0 0 0 0 50,575 40,895 0 0 151,377 0 0 151,377 139,997 0 0 172,820 0 0 172,820 54,816 0 0 0 186,916 0 186,916 807,412 (2,823,144) (113,402) (324,197) (186,916) ( 17,742) (3,465,401) (3,506,406) ( 352,288) 314,316 (280,680) 213,127 ( 3,947) ( 109,472) ( 636,509) 0 0 0 3,560,000 0 3,560,000 0 409,625 0 0 0 0 409,625 407,211 0 0 0 ( 80,308) 0 ( 80,308) 0 331,982 35.232 285,544 68,469 0 721,227 872,072 ' ( 220,203) (68,469) 0 ( 102,714) 0 ( 391,386) ( 563,571) 521,404 ( 33,237) 285,544 3,445,447 0 4,219,158 715,712 169,116 281,079 4,864 3,658,574 ( 3.947) 4,109,686 79,203 ' 1,363,192 313,958 28,665 52,971 5,614 1,764,400 1,685,197 ;1.532 6 ; 595.037 S 33.529 53.711.545 f 1.667 f 5.874.086 x.764.400 See accompanying notes. ! -4 GENERAL FUND VARIAI7CE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES Tares ; 1,176,955 § 1,153,940 {( 23,015) Licenses and Permits 133,500 159,106 25,606 S[a[e Shared Revenues 967,396 917,081 ( $0,315) Other Intergovernmental Revenue 15,500 12,115 ( 3,385) Charges Por Services 4,200 2,712 ( L,4R8) Fines and Forfeitures 95,000 76,300 ( 18,700) Interest Income 90,000 121,245 31,245 Miscellaneous Revenue 12,475 28,357 15,882 TOTAL REVENUES 2,495,026 2,470,856 ( 24,170) EXPENDITUREB Current: General Government 805,072 733,219 71,793 Public Safety 1,518,441 1,465,800 52,641 Physical Environment 0 0 0 Transportation 471,678 454,377 17,301 Culture and Recreation 121,996 119,113 2,885 Internal Services 51,070 50,575 495 Debt Service: Principal R¢tirement 0 0 0 Interest and Fiscal Charges 0 0 0 Capital Outlay 0 0 0 (TOTAL EXPENDITURES) (2,968,259) (2,823,144) 145,115 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES ( 473,233) ( 352,288) 120,945 OTNER FINANCING SOURCES (USES) Loan Proceeds 0 0 0 Proceeds From Installment Obligations 104,625 409,625 305,000 (Loan Financing Costs) 0 0 0 Operating Transfers In 373,482 331,982 ( 41,500) (Operating Transfers Out) ( 436,616) ( 220,203) 216,413 TOTAL OTHER FINANCING SOURCES (USES) 41,491 521,404 479,913 EXCESS (DEFICIENCY) OP REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES ( 431,742) PUND BALANCES, OCTOBER 1, 1988 1,229,043 FUND BALANCES, SEPTEMBER 30, 1989 S 797.301 See accompanying notes. r r A r 169,116 600,858 1,363,192 134,149 S 1.532.308 S 735.007 ' -S- ' SPECIAL REVENUE FUNDS VARIANCE FAVORABLE BUUGET ACTUAL (UNFAVORABLE) 5 360,000 S 344,828 S( 15,172) 205,000 73,989 ( 131,011) 0 0 0 0 0 0 0 8,901 8,901 0 0 0 565,000 427,718 ( 137,282) 2,400 2,362 38 0 0 0 90,600 82,211 8,389 0 0 0 155.000 28,829 126,171 0 0 0 0 0 0 0 0 0 0 0 0 (248,000) (113,402) 134,598 317,000 314,316 ( 2,684) 0 0 0 0 0 0 0 0 0 43,000 35,232 ( 7,768) (396,500) ( 68,469) 328,031 (353,500) ( 33,237) 320,263 ( 36,500) 281,079 317,579 DEBT SERVICE FUND VAALANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) S 39,178 3 40,232 S 1,054 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,000 3,285 2,285 0 0 0 40,178 43,517 3,339 0 0 0 0 0 0 0 0 0 o a o 0 0 0 0 0 0 182,860 151,377 31,483 189,108 172,820 16,288 0 0 0 (371,966) (324,197) 47,771 (331,790) (260,680) 51,110 0 0 0 0 0 0 0 0 0 331,791 285,544 ( 46,247) 0 0 0 33(,791 285,544 ( 46,247) 1 4,864 4,863 213,880 313,958 100,078 26,561 28,665 2,104 ¢ 17J~$0 ,{_fJ'~ ~ ~_4I7.657 S 26.562 S 33.529 S 6.967 (Continued) See accompanying Dotes. _~ CAPITAL PR07ECTS FUNDS VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES Taxes Llcenses and Permits State Shared Revenues Other Intergovernmental Revenue Charges For Services Fines and Forfeitures Interest Lncome ; 250,000 ; 400,043 ; 150,043 Miscellaneous Revenue 0 0 0 TOTAL REVENUES 250,000 400,043 150,043 EXPENDITURES Current: General Government 0 0 0 Public Safety 0 0 0 Physical Environment 0 0 0 Transportation 0 0 0 Culture and Recreation 0 0 0 Internal Services 0 0 0 Debt Service: Princlpal Retirement 0 0 0 Interest and FSSCal Charges 0 0 0 Capital Outlay 4,120,003 186,916 3,933,087 (TOTAL EXPENDITURES) (4,120,003) ( 186,916) 3,933,087 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (3,870,003) 213,127 4,083,130 OTHER FINANCING SOURCES (USES) Loan Proceeds 3,566,100 3,560,000 ( 6,100) Proceeds From Installment Obliga[lon s 0 0 0 (Loan Financing Coats) ( 96,097) ( 80,308) 15,789 Ope racing Transfers In 400,000 68,469 ( 331,531) (Operating Transfers Ou[) ( 102,715) ( 102,714) 1 TOTAL OTHER FINANCING SOURCES (USES) 3,767,288 3,445,447 ( 321,841) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCLNG SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES ( 102,715) 3,658,574 3,761,289 FUND BALANCES, OC70BER 1, 1988 39,797 52,971 13,174 FUND BALANCES, SEPTEMBER 70, 1989 f( 62.918) ; 3.711.545 f 3.774.463 See accompanying notes. -6- TOTALS (NEMORANDUN ONLY) VARIANCE FAVORABLE BUDGET ACTUAL (UNPAVORABLE) 1,216,133 ; 1,194,172 ;( 21,961) 133,500 159,106 25,606 1,327,396 1,261,909 ( 65,487) 220,500 86,104 ( 134,396) 4,200 2,712 ( 1,486) 95,000 76,300 ( 18,700) 341,000 533,474 192,474 12,475 28,357 15,882 3,350,204 3,342,134 ( 8,070) 807,472 735,641 71,831 1,518,441 1,465,800 52,641 90,600 82,211 8,389 471,678 454,377 17,301 276,998 147,942 129,056 51,070 50,575 495 182,860 151,377 31,483 189,108 172,820 16,288 4,120,003 186,916 3,933,087 (7,708,230) (3,447,659) 4,260,571 (4,358.026) ( LO5, 525) 4,252,501 3,566,100 3,560,000 ( 6,100) 104,625 409,625 305.000 ( 96,097) ( 80,308) 15,789 1,148,273 721,227 ( 427,046) ( 935,831) ( 391,386) 544,445 3,787,070 4,219.158 432,088 ( 570,956) 4,113,633 4,684,589 1,509,281 1,758,786 249,505 ; 938.325 ; 5.872.419 ; 4.934.094 See accompanying notes. _~ COlBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS/FUND BALANCE ALL PROPRIETARY FUND TYPES AND PENSION TRUST FUND FOR THE FISCAL YEAR ENDED SEPTEPIDER 30, 1989 CITY OF ATLANTIC BEACN, FLORIDA OPERATING REVENUES Customer Charges Employer's Contributions Employee's Contributions Slate Contributions Earnings on Investments Other Income TOTAL OPERATING REVENUES OPERATING EXPENSES Personal Services Contractual Services Supplies Repairs and Nain[enance Heat, Light and Pover Depreciation Amortization Other Expenses Retirement Benefits (TOTAL OPERATING EXPENSES) OPERATING INCOME NONOPERATING INCOME (EXPENSES) Sewer Rehabilitation Grant Connec cion Charges Sever Generation Charges Interest Income (Interest Expense) (Loss) on Asset Disposal TOTAL NONOPERATING INCOME NET INCOME BEFORE OPERATING TRANSPERS OTHER FINANCING SOURCES (USES) Operating Transfers In (Operating Transfers Out) TOTAL OTHER FINANCING SOURCES (USES) NET INCOME DEPRECIATION ON FIXED ASSETS ACQUIRED BY SHARED REVENUES EXTERNALLY RESTRICTED FOR CAPITAL ACQUISITIONS INCREASE IN RETAINED EARNINGS/FUND BALANCE RETAZNED EARNINGS/FUND BALANCE, BEGINNING OF YEAR RETAINED EARNINGS/PUND BALANCE, END OP YEAR See accompanying notes. _~_ 1 PROPRIETARY FLDIICIARY FUNDS FUND TOTAL S PENSION (MEMORANDUM ONLY) ENTERPRISE TRUST 1989 1988 S 2,859,791 ; 2,859,791 ; 2,430,517 0 ; 114,106 114,106 126,740 0 18,710 18,710 12,327 0 53,179 53,179 47,738 0 299,990 299,990 68,814 149,296 0 149,296 62,689 3,009,087 485,985 3,495,072 2,748,825 720,975 0 720,975 677,643 270,655 0 270,655 248,676 148,702 0 148,702 210,743 577,692 0 577,692 220,308 l97, 750 0 197,750 198,712 521,843 0 521,843 443,651 58,333 0 58,333 0 L31,200 3,546 134,746 71,087 0 79,992 79,992 62,840 (2,627,150) ( 83,536) (2,710,688) (2,133,860) 381,937 402,447 784,384 614,965 196,354 0 196,354 0 193,861 0 193,861 384,415 95,238 0 95,238 92,634 399,658 0 399,658 294,471 ( 375,807) 0 ( 375,607) ( 348,095) ( 4,409) 0 ( 4,409) 0 504,895 0 504,895 423,425 886,832 402,447 1,289,279 1,038,390 0 2,140 2,140 1,070 ( 331,982) 0 ( 331,982) ( 309,571) ( 331,982) 2,140 ( 329,842) ( 308,501) 554,850 404,58) 959,437 729,889 161,728 0 181,728 157,134 736,578 404,587 1,141,165 687,023 6,645,989 1,886,636 8,534,625 7,647,602 ; 7.382.567 52.293.223 t 9.675.790 S 8.534.625 See accompanying notes. _7_ COHBINED STATEMENT OF CHANGES IN FINANCIAL POSITION ALL PROPRIETARY FUND TYPES AND PENSION TRUST FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1989 CITY OF ATLANTIC BEACH, FLORIDA SOURCE OF WORKING CAPITAL Ne[ Income Item Not Requiring Outlay of Working Capital: Depreciation Amortization Working Capital Provided By Operations Property, Plant and Equipment Disposals Increase in Contributed Capital Decrease in Restricted Assets Nev Oebt Increase in Curren[ Liabilities Payable From Restricted Assets TOTAL SOURCE OF NORKING CAPITAL USE OF WORKING CAPITAL Acquisition of Property, Plant and Equipment Acquisition of Rights to Future Revenues Increase in Restricted Assets Reduction of Bonds Payable Decrease in Interest Payable From Res[ric ted Assets (TOTAL USE OF WORKING CAPITAL) INCREASE IN WORKING CAPITAL (BELOW) CHANGES IN WORKING CAPITAL HY COI~@ONENT Current Assets - Increase (Decrease): Cash and Investments Accounts Receivable Inventories Due From Other Funds Due Prom Other Governments Other Current Assets Current Liabilities - Decrease (Increase): Accounts Payable and Accrued Liabilities Due to Other Funds Customer Deposits Current Portion Revenue Hood Payable INCREASE IN WORKING CAPITAL (ABOVE) See accompanying noces. _g_ r 1 r r 1 PROPRIETARY FIDUCIARY FUNDS PUND TOTALS P}I:SION (MENORANDUH ONLY) ENTERPRISE TRUST 1989 1988 554,850 ; 404,587 S 959,437 ; 729,889 521,843 0 521,943 443,651 58,333 0 58,333 0 1,135,026 404,587 1,539,613 1,173,540 29,409 0 29,409 0 1,237,679 0 1,237,679 263,513 49,971 0 49,971 338,867 895,000 0 895,000 0 29,000 0 29,000 0 3,376,085 404,587 3,780,672 1,775,920 1,606,736 0 1,606,736 888,954 500,000 0 500,000 0 977,042 0 977,042 L54,32I 202,025 0 202,025 176,890 1,215 0 1,215 211,253 (3,287,018) 0 (3,287,018) (1,431,418) 89.067 404.587 493.654 344.502 195,085 399,146 594,231 432,751 9,908 0 9,908 45,603 ( 5,895) 0 ( 5,895) ( 7,690) 51,131 0 51,111 0 64,705 5,441 70,146 0 ( 281) 0 ( 281) 5,493 ( 123,563) 0 ( 123,563) ( 74,538) ( 51,111) 0 ( 51,111) 0 ( 54,260) 0 ( 54,260) ( 57,349] 3,368 0 3,368 232 E 89.067 } 404.587 3 493.654 S 344.502 See accompanying notes. _g_ NOTES TO FINANCIAL STATEMENTS CITY OF ATLANTIC REACH, PLORIDA NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Atlantic Beach, Florida (the "City"), is incorporated and operates under a form of government which comprises an elected City Commission (four Commissioners and a Mayor-Commissioner) and provides, under [he adminia tra tion of an appointed City Manager, the following services: public safety (police and fire), public works (streets and infrastructure), recreation, sanitation, planning, zoning, eater and sever services and general administrative services. This report includes the financial statements of all [he funds and account groups required to account for those financial activities which are administered by and under the jurisdiction of the Mayor and [he City Commfss ion. The accounting policies of the City conform to generally accepted accounting principles as applicable to governments. The following is a summary of the more signlf icant policies used in the preparation of these financial statements. Fund Accounting The accounts of the Ci[y are organized on the basis of funds or account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for using a separate set of self-balancing accounts which comprise its assets, liabilities, fund equities, revenue and expenditures or expenses. The various funds are grouped by type in the financial statements. The following fund types and account groups are used by the City: Governmental Funds: General Fund - The General Fund is the general operating fund of the City. Ic is used to account for all financial resources, except chose required to be accounted for in another fund. Special Revenue Funds - The Special Revenue Funds are used to account for the proceeds of specific revenue sources (ocher than major capital projects) [hat are legally rea[ric ted [o expenditures For specified purposes. Debt Service Fund - The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, long-term debt principal, interest and related costs ocher than obligations payable from the operations of the Enterprise Funds. Capital Projects Funds - Capital Projects Punds are used to account for the financial resources to be used for the acquisition or construct ion of major capital facilities (other than those financed by Enterprise and Special Revenue Funds). Proprietary Fund: Enterprise Funds - Enterprise Funds are used to account for water, sever and sanitation operations which are financed and operated in a manner similar io private business enterprises. (Continued) -q- 1 1 ' NOTES TO FINANCIAL STATEMENTS CITY OF ATLANTIC BEACH, FLORIDA ' (Continued) NOTE L - SUMMARY OP SIGNIFICANT ACCOUNTING POLICIES (Continued) Fund Accounting (Concluded) Proprietary Fund: (Concluded) Enterprise Funds (Concluded) - The costs of providing goods or services to the general public are financed or recovered primarily through user charges. Fiduciary Fund: ' Trust and Agency Funds - Trust Funds are used [o account for assets held as a trustee or agent 6y the City for others. The Pension Trust Fund is accounted for in essentially the same ' manner as Proprietary Funds. The Expendable Trust Fund is accounted for in essentially the same manner ae Governmental Funds. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of ' operations. Account Groups: General Long-Term Obligations Account Group - This account group is used to account for the outstanding principal balances of long-term debt and other long-term liabilities other than those payable from the operations of [he Enterprise Funds. General Fired Asset Account Group - Thia account group is used ' to account for all fixed assets of the Ci[y other than those accounted for in the Enterprise Funds. ' Basis of Accounting The accounting and reporting treatment applied to a fund is determined by its measurement focus. All Governmental Funds and Expendable Trust ' Funds are accounted for on a spending or "financial floe" measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Their repotted fund balance (net current saes ts) is considered a measure of "available ' spendable resources." Governmental Fund operating statements present increases (revenues and other financial sources) and decreases (expenditures and other financing uses) in net current assets. ' The Governmental Fund Types, Expendable Truac Fund and Agency Pund use the modified accrual balls of accounting. Under the modified accrual ' basis, revenues are recognized in [he accounting period in which they become available and measurable. Expenditures, other than interest on general long-term deb[ which is recorded when due, are recognized in the accounting period when incurred. ' All Proprietary Punds and the Pension Trust Fund are accounted for on a toe[ of services or "capital maintenance" measurement focus. This means chat all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets, Their reported fund equity (net total assets) Se segregated Into contributed capital and retained earnings components. Proprietary Pund Type operating etatementa present increases (revenues) and decreases (expenses) in net total assets. ' (Continued) _(O_ NOTES TO FINANCIAL STATE!ffiiT5 CITY OF ATLANTIC BEACH, FLORIDA (Continued) NOTE 1 - SUIBMRY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of Accounting (Concluded) The Proprietary Fund Types and Pension Trust Fund use the accrual basis of accounting. Revenue is recognized when earned and expenses are recognized when incurred. Water, sever and sanitation services are billed to customers in advance on a quarterly cycle. A receivable is recorded a[ year end for unpaid (delinquent) billings less an allowance for those considered uncollec[ible. Budgets General governmental revenue and expenditures accounted for in budgetary funds are controlled by a budgetary accounting system in accordance with various legal requirements which govern the City's operations. Budgets are monitored a[ varying levels of classification detail, however, expenditures cannot Legally exceed total appropriations a[ the individual fund level. The Ci[y currently does not use an encumbrance accounting system. Budgets have been adopted for all Governmental Funds (General, Special Revenue, Debc Service and Capital Pcoj acts Funds). The CSty Hanager is authorized to transfer budgeted amounts within departments within any fund, however, any revisions that increase the total expenditures of any department or fund must be approved by the City Commission. All necessary supplemental appropriations were adopted by the City Commission as part of a quarterly budget review process and are included in the reported budgetary data. The budget presented on the Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget is prepared on the GAAP basis. Cash and Investments Except where prohibited, cash resources of the individual funds are combined co farm a pool of cash and investments. Investments in the Pooled Caeh Fund consist primarily of invested cash and certificates of deposit which mature in one year or less plus cash invested with [he S[a[e Board of Administration. Interest income earned on the pooled cash and investments ie distributed to the appropriate funds based on the average monthly balance of Snvestmen[s in each fund. Cash and investments in the Agency Fund represent employee deferred compensation which Ss managed by the International City Hanagers' Association (ICNA). Investments are valued at coat, except for the investments of the deferred compensation and pension trust funds, which are valued at market (see Note 2). 1 1 1 Race Svablea ' Receivables are recorded at their net realizable value. There ie no allowance for uncollectible accounts at September 30, 1989. (Continued) ' -11- r w r r r NOTES TO FINANCIAL STATE14~iTS CITY OP ATLINTIC BEACH, FLORIDA (Continued) NOTE 1 - SUMIARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Inventories Inventories consisting principally of expendable materials. supplies and Euel are determined by physical count at the City's year-end and are valued at the lover of cos[ (first-in, first-out) or market. During the year, inventory in the General Fund is recorded ae an expenditure at the time of purchase (purchase method) and converted to the consumpilon method for financial statement purposes. The inventory balance reported is offset by a fund balance reserve which indicates [hat i[ does not constitute "available spendable resources" even though 1t is a component of net current assets. Restricted Assets Certain enterprise fund assets are required [o be segregated from other current assets due to various bond indenture agreements and City Ordinances. These aeaets are legally restricted for specific purposes, such as debt service, new canetruc[ion, and renewals and replacements. Accounting For Pixed Assets Proprietary Fund capital expenditures made for revenue-producing assets, which are employed So operations [hat are accounted for in the Proprietary Funds, are capitalized at historical costa and depreciated using the straighC-line method over [hair estimated useful lives as follows: Buildings and Improvements Improvements Ocher Than Buildings Equipment 40 Years IO - 50 Yeats 3 - 40 Years Contributed assets are recorded at fair market value at the date of contribution. Depreciation recognized on aeaets acquired or constructed through resources externally restricted for capital acquisitions is closed to the appropriate contributed fund equity account. General Fixed Assets Account Groups are fixed assets used in governmental fund type operations and are accounted far in the General Fixed Aase to Account Group, rather than in governmental funds. All fixed aeaets are valued at historical cos[. Donated fixed aeaets are valued at their estimated fair value on the date donated. No depreciation has been provided on general fixed aeaets. Public domain ("infrae[ructure") general fixed case is such as streets and sidewalks that are generally immovable and of value only [o the City of Atlantic Beach have no[ been capitalized. _lp_ (Continued) NOTES TO FINANCIAL. STATEMENTS CITY OF ATLANTIC BFACH, FIABIDA (Continued) NOTE 1 - SUMNARY OF SIGNIPICANT ACCOUNTING POLICIES (Continued) Accounting Por Long-Term Obligations Long-term obligations, general obligation or revenue bonds, used to finance enterprise fund operations and payable from revenue of the enterprise funds are recorded in the applicable fund. General obligation bonds artd ocher forms of long-term obligations supported by general revenue are ohltgations of the Ci[y as a whole and no[ its individual constituent funds. Accordingly, such unma[ured obligations of the Clty are accounted for in the General Long-Term Obligations Account Group (see Note 4). The notes payable to the CS[y of Gulf Breeze, Plorida are recorded in the General Long-Term Obligatlons Account Group until the City determines which funds will benefit from [he expenditures and repay the obligations. The City estimates approximately 63Z of the proceeds will be used for street and drainage projects, 37X for water and sewer improvements. The City has not determined which funds will repay the obligations. Compensated Absences Accumulated unpaid vacation and sick pay are accrued when incurred in proprietary funds. The amount of accumulated vacation and sick pay recorded Sn the governmental funds is that amount, adjusted to current salary costs, which is expected [o be liquidated with expendable available financial resources. Only [he current portion Ss reflected Sn [he funds. The remainder of the liability ie reported in the Cenecal Long-Term Obligations Account Group. The guidelines of Financial Accounting Standards Board Statement No. 43 were applied in determining the liabillty for both governmental and proprietary funds. Revenue Recognition Utility revenues are recognized when received and adjua [ed to [he accrual basis for financial report Sng. Restricted gran[ revenues, which axe received but not expended are recorded as deferred revenues. Grant revenues receivable are recorded when reimbursable expenditures on those grants have been Sncurred but not reimbursed. Property Taxes The assessment of all properties and the collection of all property taxes are made through [he Property Appraiser and Tax Collector of the City of Jacksonville. General property taxes are recorded as received in cash, which approximates taxes levied, less discounts, fot the current fiscal year. Taxes are levied on November 1 of each year. All [axes become ,:alinquent on April 1 of [he following year. Discounts are allowed for early payment. On or prior to June 1, certificates bearing interest at lBZ are sold for all uncollected real property taxes. Unsold certlfica tes are held by the CSty of Jacksonville. (Continued) -13- t t10TES TO FINANCIAL STATElffHTS CITY OF ATLANTIC BEACH, FLORIDA ' (Continued) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Concluded) In[erfund Transactions During the course of normal operations, the City has various transactions between Funds to cone cruet assets and comply with local ' ordinances and other legal restrictions. These transactions are reflected as operating transfers (see Note 8). Pension Plans The Ci[y accounts for its pension plans under Financial Accounting Standards Board Statement No. 35 "Accounting and Reporting by Defined ' Benefit Pension Plana". The pension plans cover substantially all of [he City's full-time employees. The City records pension coats in Che period salaries are earned. Pension expense includes normal cos[ plus amortization of past service coat over 25 years (see Noce 6). ' Deferred Compensation Plan This City reports its Internal Revenue Code Section 457 deferred compensation plan as an agency fund in accordance with Governmental Accounting Standards Board Statement No. 2 (see Note 7). Contributed Capital ' Contributed capital in the proprietary fund types represent contributions from other funds, developers, and federal, state and local grant programs. Coo[ributions are used primarily for capital ' outlay projects and are recognized ae increases in equity in the period they are earned or received. ' Reserve of Fund Balances and Retained Earnings Reserves recorded in the governmental funds represent portions of fund balance which cannot be appropriated for expenditures or which have been segregated for specific Future uses. The amount included in ' "Other Reserves" in the General Fund represents the unexpended portion of the Convention Development Tax revenues. The reserved fund balance in the Special Revenue Fund le for payment of long-term deb[ ' ($148,308) and for road and street expenditures ($446,729). The rase rved fund balance in [he Capital Pzoj act Fund is reserved for major eater, sever, streets and drainage projects. ' Reserves recorded in the enterprise funds are created by the exls[ence of assets restricted for debt service, construction, renewals and replacements. The "Other Reserves" of $227,263 are the State Revenue ' Generation Charges reserved for future sever plant expansion. Total Columns on Combined StaCemente ' Total columns on the Combined Financial Statements are captioned "Memorandum Only" to Indicate [hat they are presented only to Facilitate financial analysis. Data in Chase columns do no[ present f inanclal position, results of operations, or changes in financial ' position in conformity with generally accepted accounting principles. Neither 1s such data comparable [o a consolidation. Interfund ellminatlons have no[ been made in the aggregation of [hie data. -14- (Continued) NOTE 2 - NOTES TO FINANCIAL STATEMENTS CITY OF ATLANTIC BEACH, FLORIDA (Continued) AND INVESTMENTS (Continued) The City maintains a cash and investment pool that is designed for use by all funds, except for [hose monies which are periodically transferred [o [he pension custodian and the deferred compensation plan administrators. In addition, investments are separately held and individually accounted for by several of the City's funds where contractual arrangements and bond covenants provide for and require such arrangements. The deposits and investments of the pension trust fund which have been transferred to the pension custodians are held separately from those of other Ci[y funds and are required to be administered by an investment advisor. At September 30, 1989, the carrying amount of cash on hand and on deposit with banks, including interest-bearing deposits vas ;143,316, and the related bank balance was ;818,138. Monies which are placed on deposit with financial Snstitutions in the form of demand deposit accounts, time deposit accounts and certificates of deposit are defined as public deposits. All of the City's public deposits are held in qualified public depositories pursuant [o State of Florida Statutes, Chapter 280, "Plorida Security for Public Deposits Act". Under the Act, all qualified public depositories are required to pledge eligible collateral having a market value equal to or greater than the average daily or monthly balance of all public deposits, times the depository's collateral pledging level. The pledging level may range from SOS to 125X depending upon the depository's financial condition and establishment period. All Collateral moat be deposited with an approved financial institution. Any losses [o public depositors are covered by applicable deposit insurance, sale of securities pledged as collateral and, if necessary, assessments against other qualified public depositories of the same type ae the depository in default. The City's investment practices are also governed by Chapter 280, Florida Statutes, which allows the City to invest in certificaiea of deposit, money market certificates, obligations of the U.S. Treasury, its agencies and instrumentalities, repurchase and reverse repurchase agreements collateralized by U.S. securities, and [he Slate Board of Administration. The pension trust funds are also authorized to invest in corporate bonds, preferred stocks, common stocks, and mutual funds. Cash and investments a[ September 30, 1989, are categorized in accordance with CASB S[atemen[ No. 3 to indicate the level of risk assumed by the Clty. The cer[if icatee of deposits are considered to be category one credit risk deposits, which means chat they are insured or cola [e ralized with securities held by the City's agent in [he City's name. The pension investments held by Sun Bank Trust Department are considered to be category one credit risk investments, which means [hat they are fully insured (;100,000 per participant). -15- (Continued) 1 1 ' NOTES TO FINANCIAL STATEMENTS CITY OF ATLANTIC BEACH, FLORIDA ' (Continued) NOTE 2 - CASH AND INVESTNENTS (Concluded) ' The deposits and investments with state agencies and [he International City Managers' Association (deferred compensation) are rtot classified by credit risk since [hey axe held by independent agencies. There were no violations of the legal or contractual provisions fox deposits and investments. ' The total cash and investment balance of the following items: City £s comprised of the CASN ' Petty Cash on Nand S 400 Savings and Noney Narks[ Accounts 143,316 TOTAL CASH 143,716 CERTIFICATES OF DEPOSIT Certificates of Depoaft Ni[h Local Banks: 180 Day Maturities or Leee 2,738,367 PENSION TRUST INVESTMENTS Short-Term Treasury Portfolio L2,144 High Grade Bond Fund 1,523,040 Corporate Equity Fund 683,56! TOTAL PENSION TRUST INVESTMENT 2,218,745 INVESTMENTS Investments Pith ICMA 77,201 Invested Cash in Escrow and Cash Hith Ffaca l Agent 708,462 ' Investment With State Board of Administrati on 7,070,049 TOTAL INVESTMENTS 7,855,712 TOTAL CASN AND INNEST!!0>NTS 12,956,540 ' (RESTRICTED CASH AND INVESTMENTS) (2,825,002) TOTAL UNRESTRICTED CASH AND INVESTMENTS ;10.131.538 ' NOTE 3 - PROPERTY, PLANT AND EQUIPNPNT A summary of changes In general fixed assets follows: ' BALANCE BALANCE OCTOBER 1, SEPTEMBER 30, 1988 ADDITIONB DISPOSALS 1989 Land ; 403.868 ; 0 S 0 ; 403,868 Buildings 1,050,294 28.829 0 1,079.123 Improvements Other Than Buildings 441,318 100 0 441,418 Equipment 831,846 188,202 ( 69,858) 950,190 Construction in Progress 0 6,130 0 6,130 ' TOTAL PROPERTY, PLANT AND EQUIYP,ENT ;2.727.326 f 223.261 S( 69.858) S 2.880.729 (Continued) ' -16- NOTES TO FINANCIAL STATElOiNTS CITY OF' ATLANTIC BEACH, FLORIDA (Continued) NOTE 3 - PROPERTY, PLANT AND EQUIPMENT (Concluded) A summary of fixed assets of [he Enterprise Funds a[ September 30, 1989, follows: Land Buildings Improvements Other Than Buildings Improvements From Joint Venture Machinery and Equipment (Accumulated (Depreciation) Construction-in-Progress BUCCANEER DISTRICT OAK HARBOR TOTAL WATER SE17ER SANITATION WATER SEWER WATER SEWER ENTERPRISE FUND FUND FUND FUND FUND FUND FUND FUNDS ; 65,557 ; 26,681 ; 117,799 ; 210,037 393,718 505,685 92,531 182,829 1,174,763 1,704,563 5.603,067 1,561,644 3,143,043 ; 127,414 ; 272,586 12,412,317 U 616,802 111,026 163,741 f 524,158 2,209,307 6,954,852 524,158 ( 821,014) (1,335,291) (198,332; 1,388,293 5,619,561 325,826 500,498 25,082 0 51.888.791 f 5.644.643 f 325.826 0 0 0 0 616,802 43,422 33,409 0 1,940 877,696 1,724,278 3,477,080 127,414 274,526 15,291,615 ( 164,239) (331,652) 0 0 ( 2,850,528) 1,560,039 3,145,428 127,414 274,526 12,441,087 0 0 5,775 63,786 595,141 fl_560.039 53.145.428 1 1 9 f 338 12 ; 13.0 6 22 NOTE 4 - LONG-TERM OBLIGATION the following is a summary of the long-term obligations of the City of the year ended September 30, 1959: GENERAL LONG-TERN OBLIGATIONS ENTERPRISE GENERAL ACCRUED FUNDS REVENUE OBLIGATION NOTEB INSTALLMENT COl~ENSATED REVENUE BONDS BONDS PAYABLE NOTES ABSENCES BONDS TOTAL OBLTGATIONS PAYABLE AT OCTOBER 1, 1988: ; 872,160 ; 217,000 ; 0 ; 0 ; 89,182 ; 3,859,094 ; 5,037,436 New Debt 3,560,000 409,625 14,598 900,000 4,884,223 Principal Retired (11'1,897) ( 25,000) 0 ( 13,480) 0 ( 205,394) ( 356,771) OBLIGATIONS PAYABLE AT SEPTElOSER 30, 1989 f 759_263 ~ 192.000 ;J~60.000 } 396.145 £_ 103.780 f 4.5 00 ; 9.564.888 -17- NOTES TO FINANCIAL STATEHIIiTS CITY OF ATLANTIC BEACH, FLORIDA ' (Continued) NOTE 4 - LONG-TERN OBLIGATIONS (Continued) ' Bonds payable at September 30, 1989, are comprised of t he following individual issues: Genetal Obligation Bonds: ' 1971 Sever System Serial Bonds, Payable in Annual Ivatallmenta of ;25,000 to ;40,000 Principal Plus Semi-Annual Interest a[ S.75S Through 1995. ; 192,000 Revenue Bonds: 1985 Buccaneer District Pater and Sewer Serial ' Bands, Payable in Annual Installments of Principal and Semi-Annual Installments of Interest at 9S Through 2000. Total Payments are Approximately ;340,000 Annually. 2,363,700 ' Slate Pollution Control Bonds, Series "Q", Payable in Annual Installments of ;50,000 of Principal ' and Semi-Annual Installments of Interest a[ 8S Through 2000. Total Payments are Approximately ;175,000 Annually. 1,290,000 1985 Florida Hunic ipal Loan Council Pooled Loan Program Revenue Bonds Payable in Quarterly Ivstallmenca of ;30,371 Plus Interest Through 1995. Bearing Interest at a Variable Rate (Approximately 7.OZ at September 30, 1989) 759,263 1989 Oak Harbor and Sewer District Revenue Bonds, Payable in Annual Installments of Principal and ' Semi-Annual Installments of Interest at 8S Through 2015. Total Payments are Approximately ;80,000 Annually. 900,000 ' TOTAL BONDS PAYABLE ;5.504.963 ' Notes Payable: Notes payable at September 30, 1989, are comprised of the following: ' City of Gulf Breeze, Florida, Local Government Loan Pool Program, Government Uni[ Note, Payable in Annual Installments of Principal and Semi-Annual Installments of Interest at a Floating Ra[e Increasing From 6.SOI to 6.BSX Over tF.e Term of the Note. Total Payments Are Approximately ;225,000 Annually. ' The No[e 16 Secured By The City's UCiliCy Service Taxes and The Local Option Gae Taxes. ;1,400,000 ' (Coot ivued) -18- NOTES TO FINANCIAL STATEMENTS CLTY OF ATLANTIC BEACH, FLORIDA (Continued) NOTE 4 - LONG-TERM OBLIGATIONS (Continued) Notes Payable: (Concluded) City of Gulf Breeze, Florida, Local Government Loan Pool Program, Government Unit No[e, Payable in Mnual Installments of Principal and Semi-Mnual Installments of Interest at a Floating Rate Increasing From 7.402 to 7.703 Over The Term of The Note. Total Payments Are Approximately {195,000 Mnually. The Note is Secured By The City's Utility Service Taxes. 52.160,000 Installment Note, General Electric Fleet Services, Inc. Payable in Monthly Installments of 53,283 Including Interest at 8.13. 99,453 Installment Note, General Electric Fleet Services, Inc. Payable in N,on[hly Installments of ;6,199 Including Interest at 8.13. 296,692 TOTAL NOTES PAYABLE 33.956.145 The annual requirements to amortize all debts outstanding at September 30, 1989, are as follows: YEAR GENERAL LONG-TERN OBLIGATIONS ENDING ACCOUNT GROUP 9/30 PRINCIPAL INTEREST TOTAL 1990 ; 398,953 ; 337,867 E 736,820 1991 432,798 312,303 745,101 1992 447,192 282,137 729,329 1993 427,625 252,273 679,898 1994 451,987 222,611 674,598 Thereafter 2,748,853 1,936,698 4,685,551 TOTAL #4.907.408 $3.343.889 58.251.297 ENTERPRISE FUNDS PRINCIPAL INTEREST TOTAL 3 70,000 ; 282,857 5 352,857 219,600 377,501 597,101 241,800 357,963 599,763 259,900 336,476 596,376 284,300 313,348 597,648 3,478,100 2,024,655 5,502,755 34.553.700 33.692.800 38.246.500 General obligation bonds (1971 series) of the Long-Term Obligations Account Group represent bonds issued by the City for conetructlon, improvements and exteneiona to the City's sewer system. These bonds were issued ae general obligations of [he CS[y and, therefore, are not obligations of the individual En [erprise (sever) Pund. During 1985, the City obtained a State Bond Loan which 1s administered by the State Board of Administration and secured by State Pollution Control Bonds, Series "q", co support funding for improvement and expansion of its sewer system. These bonds are payable from pledged revenues derived from the opera[Sone of the sewer system. Under the terms of the agreement, the City may later pledge additional legal and available Lunde to repay the loan, ae 1[ deems appropriate. e 1 1 -19- (Continued) ' NOTES TO FINANCIAL STATEMENTS CITY OF ATLANTIC BEACH, FLORIDA ' (Continued) NOTE 4 - LONG-TERM OBLIGATIONS (Concluded) ' During 1985. the City issued revenue bonds to acquire an additional water and sever system. These bonds are payable from the net revenues of [he Buccaneer District Hater and Sewer System and are not general ' obligations of [he City. During 1986, the City elected [o participate in the Florida Municipal ' Loan Council Pooled Loan Program (Revenue Bonds, Series 1985). Under this program the City is eligible to borrow up to ;1,070,510 to be used to finance capital pro,j acts. Through September 30, 1989, the City has borrowed 51,070,510 of which the entire amount is included as an obligation of [he General Long-Term Obligations Account Croup. The amortization schedule above includes interest on these obligations at an assumed race of 7.OE, which approximates the actual rate at ' September 30, 1969 (the actual rate is variable). During 1989, the Gity issued additional revenue bonds to acquire the ' Oak Harbor District Haler and Sever System. These bonds are payable from the net revenues of this system and are not general obligations of the City. ' Revenue bonds of the Enterprise Punde contain various terms and covenants which require [he City to maintain adequate user rates and to account for the deposit and diabursemen[ of revenues Sn accordance ' with established priorities. As of September 30, 1989, [he Ci[y was substantially in compliance with all such covenants. ' Interest incurred during the year ended September 30, 1989 was 5172,820 in the Debc Service Fund and 5375,807 in the Enterprise Funds. All the interest vas charged to expense during the year. ' NOTE 5 - PURCHASE OF OAK HARBOR SYSTEH On Parch 1, 1989, the City purchased the eater distribution and saver ' callectlon systems from the Oak Itarbar Hater and Sewer District of 5900,000. The acquisition was financed with the proceeds from the Oak Harbor bond issue. The purchase price was in excess of the Eair value ' of the fixed assets acquired. The City has allocated 5400,000 [o the purchase price of the fixed assets and 5500,000 to the rights to future revenues from this area. The Sn[angible asset is befog amortized over flue years using the straight-line method. ' Amortiza[Son expense for 1989 was fb8, 333. The unamortized balance at September 30, 1989 was ;441,667. ' NOTE 6 - EMPLOYEE BENEFITS The CSty has three separate defined benefit single-employer pension plans (General Employees', Police and PSref lghtere') which cover ' substantially all of its employees. The City accounts for the plane as pension [rust funds. ' (Continued) -20- NOTES TO FINANCIAL STATEMENTS CITY OF ATLANTIC BEACR, FLORIDA (Continued) NOTE 6 - E[7PLOYEE BENEFITS (Continued) General Employees' Pension Plan All City employees, except for police, firefighters and part-time employees, are covered under [he General Employees' Pension Plan. Current membership at September 30, 1989, is comprised of the fallowing: Retirees and eenef is caries Currently Receiving Benefits IO Vested Terminated Employees 3 Active Employees: Fully-Vested 27 Nan-Vested 43 TOTAL Employees attaining the age of 60 and completing five or more continuous years of service, are entitled to a monthly benefit of 2.25X aF their average monthly earnings as defined in the plan for each year of continuous service. Active employees who become disabled receive benefits computed as regular ce[ixement benefits. If an active employee dies, hie designated beneficiary receives payments computed as regular ret ixement benefits. If a member's employment is terminated before he becomes eligible for any other benefits under this plan, he shall receive a refund of his member contributions. If a member terminates his employmenC either voluntarily or by lawful discharge after the completion of at least five years of continuous service, but before becoming eligible for retirement under this plan, he shall be entitled to a deferred vested benefit. The deferred vested benefit shall be based on monthly earnings and continuous service as of the termination date. The General Employees' Pension PLan was established pursuant [o City Ordinance adopted in 1975 by the City Commission. The plan is also governed by certain provisions of Chapter 112, Florida Sta[utea. The plan is administered by the Board of Trustees. Police and Firefighters' Retirement System Current membership in the Police and Plrefightera' Retirement System is comprised of the fallowing: Retirees and Beneficiaries Currently Receiving Benefits 4 Vested Terminated Employees 4 Active Employees: Fully-Vested 1R Non-Vested l2 TOTAL j~ (Continued) -21- 1 1 NOTES TO FINANCIAL STATEMENTS CITY OF ATLANTIC BEACH, FLORIDA ' (Continued) NOTE 6 - EMPLOYEE BENEFITS (Continued) ' Police and Firefighters' Retirement System (Concluded) Employees attaining the age of 60 and completing five or more continuous years of service, are entitled to a monthly benefit at 2.4X of their average monthly earnings as defied in the plan for each year of continuous service. Active employees who become disabled receive benefits computed as regular retirement benefits. If an acCive employee dies, his/her designated beneficiary receives payments computed as regular retirement benefits. IF a member's employment is terminated before he/she becomes eligible for any ocher benefits under this plan, he/she shall receive a refund of his/her member contribution. ' If a member terminates his/her employment either voluntarily or by lawful discharge after the completion of at least five years of continuous service, but before becoming eligible for retirement under ' this plan, he/she shall be entitled to a deferred vested benefit. The deferred vested benefit shall be based on monthly earnings and continuous service as of the termination date. ' The Police and Firefighters' Pension Plan was established pursuant [o City Ordinance adopted in 1975 by the Ci[y Commission. The plan is also governed by certain provisions of Chapters 175 and 185, Florida ' Statutes. The plan is administered by the Board of Trustees. Summary of Slgnif lcanC Accounting Policies and Plan Asset Matters 1 1 1 Investments and investment Income: Investments for [he plans are SniCially recorded on [he trade date. Investments are valued ac fair market value. Market values of investments are valued a[ the last reported sales price on the last business day of the year from published sources. Investment policies are determined by the Board of Trustees and are implemented by iaveatmen[ advisors. Earnings on investments represent realized gains and losses and the effects of adjusting the investment portfolio to Fair market value at fiscal year end. Inveetmenca as of September 30, 1989, are ae follows: Corporate Equity Pund High Grade Bond Fund Short-Term Treasury Portfolio TOTAL FAIR NAItKBT COST VALOE i 563,148 ; 683,561 1,520,000 1,523,040 12,144 12,144 ~~095.292 ; 2.218.745 Related Party Traneactiona: There are no related party transactions recorded for any of the place. (Continued) -22- NOTES TO FINANCIAL STATEMENTS CITY OF ATLANTIC BEACH, FLORIDA (Continued) NOTE 6 - EMPLOYEE BENEFITS (Continued) Summary of Significant Accounting Policies and Plan Asset Natters (Continued) Funding S[a tus and Progress: The amount shown be low as the "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases, estimated to be payable in [he future as a result of employee service [o date. This measure is the ac [uarfal-determined present value using the credited projected benefits method and is intended to (i) help users assess the plan's funding status on s going-concern basis, (11) assess progress being made in accumulating sufficient assets [o pay benefits when due, and (iii) alloy for comparisons among public employee retirement plans. The measure is independent of the actuarial funding method used to determine contributions to the plan. The pension benefit obligation vas determined as part of an actuarial valuation of the plan as of September 30, 1988. Significant actuarial assumptions used in determining the pension benefit obligation include (a) a rate of return on the investment of present and future assets of BI per year compounded annually, (b) projected salary increases of 6Z per year compounded annually, attributable to Inflation, (c) additional projected salary increases ranging from O.OS to 3.Oi per year, depending on age, attributable to seniority/merit; and (d) the assumption that benefits will not increase after retirement. A[ September 30, 1988, [he unfunded pension benefit obligations are as follows: Pension Benefit Ubligation: Retirees and Beneficiaries Currently Receiving Benefits Terminated Employees Not Yet Receiving Benefits Current Employees: Accumulated Employee Contri- butions, Inc lading Allocated Investment Income Employer Financed - Vested Employer Financed - Nonveeted To [al Pension Benefit Obligation Net Aaseta Available Por Benefits (At HarkeC) Unfunded (Overfunded) Pensfon Benefit Obligation GENERAL POLICE FIRE ; 397,870 ; 143,642 ; 72,562 53,913 8,803 51,616 6,905 4,238 1,733 586,740 339,559 97,461 69,142 57,976 25,549 1,114,570 554,218 248,921 ( 898,109) (666,160) (324,366) 1 f(111.942) f( 75.445) During the year ended September 30, 1988, the plans experienced a net change of ;214,473 in the pension benefit obligation. Of this change, ;13,035 vas attributable to changes in benefit obligations. (Continued) _23_ 1 1 1 1 1 1 t 1 NOTES TO FINANCIAL STATEMENTS CITY OF ATLANTIC BEACN, FLORIDA (Continued) NOTE 6 - EMPLOYEE BENEFITS (Concluded) Summary of Significant Accounting Policies and Plan Assets Matters (CO¢C laded) Contributions Required and Contributions Made Por All Plana The City s funding policy provides for periodic employer contributions at actuarially-determined rates that, expressed as percentages of annual covered payroll, are designed to accumulate sufficient asseCa Co pay benefits vhen due. The normal cost and actuarial accrued liability is determined using a¢ entry age actuarial funding method. Unfunded actuarial accrued liabilities are being amortized as a level percent of payroll over a period of 23 years. During the year ended September 30, 1989, contributions totalling ;185,995 (;167,285 employer and 518,710 employee) were made in accordance with contribution requirements determined by an actuarial valuation of the plan as of September 30, 1987. Significant actuarial assumptions used to compute contribution requirements were the same ae [hose used to compute the standardized measure of the pension benefit obligation. Historical Trend Information - All Plans Net Assets as a Percentage of Pension Benefit Obligation Unfunded Pension Benefit 06ligation ae a Percentage of Annual Covered Payroll Contributions Expressed as a Percentage of Annual Covered Payroll: General Police Fire 1985 1986 1987 1988 109.95 113.35 99.55 96.55 0.05 0.05 .65 1.75 9.315 9.535 9.175 9.245 11.615 14.395 9.155 8.365 11.855 15.065 7.715 7.845 Ten-year historical trend information, designed to provide information ' about [he City's progress made in accumulating sufficient assets to pay benefits vhen due, Ss presented in the statistical section of this report. NOTE 7 - DEPERRED COMPENSATION PLAN ' The Ci[y offers its employees a deferred compensation plan created 1n accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portio¢ of their salary until future years. The deferred compensation Se not ' available to employees until termination, retirement, death, or unforeseeable emergencies. -24- NOTES TO FINANCIAL STATEMENTS CITY OF ATLANTIC BEACH, PLORIDA (Continued) NOTE 7 - DEFERRED COMPENSATION PLAN (Concluded) All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available co the employee or other beneficiary) solely the property and rights of the City (without being restricted to the provisions of benefits under the plan), subject only to the claims of She CS[y's general creditors. Participants' rights under the plan are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account £or each participant. It is [he opinion of the City's legal counsel that [he City has no liability for losses under the plan but does have the duty of due care that would be required of any ordinary prudent investor. The City believes that it ie unlikely that it will use the assets to satisfy the claims of general creditors in [he future. NOTE 8 - INTERFUND TRANSACTIONS RECONCILIATION A summary of interfund transfers during she fiscal year ended September 30, 1984, is as follows: TRANBPERS T0: Transfers From: General Special Revenue Capital Projects Enterprise TOTAL TRUST SPECIAL CAPITAL DEBT AND GENERAL REVENUE PROJECTS SERVICE ENTERPRISE AGENCY TOTAL ;35.232 ;182,830 ; 0 ;2,140 5220,202 0 ; 68,469 0 0 0 68,469 0 0 102,714 0 0 102,714 ;331,982 0 0 0 0 0 331,982 ;331.98 35 2 2 6; 8.469 2 44 £__ 0 2 40 S72~i,_367 A summary of interfund receivable/payables at September 30, 1989, is ae follows: DUE TO• SPECLAL CAPITAL GENERAL REVENUE PROJECTS ENTERPRISE TOTAL Due From: General ; 0 ; 0 f 0 Special Revenue ; 8,002 0 0 8,002 Capital Proj acts 129,077 0 0 129,077 Enterprise 0 0 0 ; 51,111 51,111 TOTAL 5137.079 J~ ~ f 51.111 1 1 (Continued) - 25- 1 ~ . ~ . ~ ....... ~ r ~ .... NOTES TO PINANCIAL STATEMENTS CITY OP ATLANTIC BEACH, FLORIDA (Continued) NOTE 9 - SEGMENT INFORiIATION FOR ENTERPRISE FUNDS The City has established separate Enterprise Funds [o account for eater, sever and sanitation services. Segment information for [he City's Enterprise Funds for the year ended September 30. 1989, ie ae follova: HATER PUND Operating Revenues S 316,023 Depreciation and Amortization 80,285 Operating Income (Loss) ( 1,264) Operating Grants C Nan-Operating Income (Expense) 106,599 Operating Transfers In (Out) ( 22,134) Net Income (Loss) 83.201 Net Property, Plan[ and Equipment 1,888,791 Intangible Assets 0 Ne[ Horking Capital 287,702 Property, Plan[ and Equipment Additions 452,082 Contributions 177,998 Long-Term Debt U Total Equity 2,176,493 Total Asaecs 2,487,515 BUCCANEER DISTRICT OAR HARBOR DISTRICT TOTAL SEWER SANITATION WATER SEVER WATER SEVER ENTERPRISE FUND FUND FUND PUND FUND PUND PUNDS 879,143 ; 623,912 ; 321,566 S 734,011 S 36,100 S 98,332 S 3.009,087 253,003 36,778 51 ,f129 100,748 18,58L 39,752 580,176 ( 363,494) 159,241 144,423 397,937 1,802 43,292 381,937 196,354 0 0 0 0 0 196,354 448,710 731 ( 22,417) 11,815 ( 12,247) ( 28,296) 504,895 ( 139,309) ( 105,785) ( 18,680) ( 34,064) ( 5,775) ( 6,235) ( 331,982) ( 54,093) 54,187 103,326 375,688 ( 16,220) 8,761 554,850 5,644,643 325,826 1,560,039 3,145,428 133,189 338,312 13,036,228 0 0 0 0 140,686 300,981 441,667 740,573 ( 15,075) 145,471 672,231 ( 4,409) ( 19,134) (,807,359 151,578 223,408 159,630 148,537 133,189 338,312 1,606,736 495,615 0 144,178 419,888 0 0 1,237.679 1,225,000 0 775,939 1,587,761 285,088 609,912 4,483,700 6,603,964 310,751 1,060,691 3,361,993 ( 16,220) 8,761 13,506.433 8,006,564 342,018 1,954,288 4,955,870 325,958 704,058 18,776.271 -26- NOTES TO PINANCIAL STATEMENTS CITY OF ATLANTIC BEACB, FLORIDA (Concluded) NOTE 10 - JOINT VENTURE Irt 1985, pursuant to as interlocal agreement authorized by Section , 163.01, Florida SCatu[es, the City joined with the City of Jacksonville Beach, Florida, and the Ci[y of Neptune Beach, Florida Co construct sad operate effluent outfall lines and disposal facilities, , togecher with all the lands, righC-of-ways, easements, and other entitlements necessary for the construction and use thereof. The construction of the outfall lines and disposal facilities were ' funded by the municipalities in the following proportions: Atlantic Beach 33.065 Jacksonville Beach 55.78E Neptune Beach 11.16E TOTAL 100.00E , Each City has recorded its share of the project in its ovn financial statements. The City recorded ire portion of the joint venture (approximately ;290,000) in [he property accounts of the City's Sever , Fund. The City also records approximately ;325,000 of additional property purchased with grant proceeds from the Florida Department of Environmental Reguletlon since [he grant for [he outfall Linea was awarded to [he City of Atlantic Beach. Therefore, the [o Cal cos[ of ' the joint venture on the C1ty'e books is approximately $615,000. The project vas completed in 1986 and depreciation (using [he straight-line method over 25 years) began in 1987. ' The City of Atlantic Beach provides all accounting and purchasing services for the join[ venture. Reps lr and maintenance of the outfall ' lines and disposal of the facilities will be shared by the participating municipalities in the percentages noted above. No repair and maintenance expenses related to the join[ venture were Sncurred in 1989. ' _27 ' ' CDMBINING AND INDIVIDUAL FUND STATEMENTS ' AND SCHIDULES Combining financial statements provide a more detailed view of the "General Purpose Financial Statemenca" presented in the preceding subsection. Individual statements and schedules, although no[ necessary are fair presentation in conformity with generally accepted accounting principles, are presented to provide greater detail and comparative financial information for certain fund types. GENERAL FOND The Ceveral Fund is the general operating Eund of [he Ci[y. IC is used [o ' account for all financial resources, except those required to be accounted for in another fund. 1 1 1 SCHEDOLE OF EXPENDITURES BUDGET AND ACTUAL GENERAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1989, KITH COHPARAI'IVE TOTALS FOR SEPTEMBER 30, 1988 CITY OF ATLANTIC BEACH, FLORIDA 1969 1988 VARIANCE PAVORABLE BUDGET ACTUAL (UNFAVORABLE) ACTUAL EXPENDITURES General Govemmen[: Legislatlve Personal Services ; 24,615 ; 20,971 S 3,644 ; 21,728 Operating Expenses 4,250 2,722 L,528 2,531 Total Legislative 28,865 23.693 5,172 24,259 Executive Personal Services 89,487 89,213 274 78,602 Operating Expenses 8,005 6,943 1,062 6,133 Capital Outlay 5,049 5,041 8 3,136 Total Executive 102,541 101,197 1,344 87,871 Pinance and Administration Personal Services 152,441 150,357 2,084 104,787 Operating Expenses 16,125 15,508 617 10,130 Capital Outlay 8,400 8,379 21 3,052 Total Pinance and Administration 17 b,9b6 174,244 2,722 117,969 Legal Counsel Personal Services 604 595 9 1,069 Operating Expenses 86,800 86,753 47 92,797 Total Legal Counsel 87,404 87,348 56 93,866 Planning and Zonin¢ Personal Services 19,496 18,208 1,288 16,144 Operating Expenses 43,075 26,552 16,523 1,816 Capital Outlay 255 232 23 2,267 Total Planning and Zoning 62,826 44,992 17,834 20,227 Code Enforcement Operating Expenses 5,000 2,789 2,211 2,272 Capital Outlay 600 591 9 1,800 Total Code Enforcement 5,600 3,380 2,220 4,072 City Clerk Personal Services 56,327 47,574 10,753 56,105 Operating Expenses 15,244 7,593 7,651 13,211 Capital Outlay 1,318 1,153 165 11,562 Total City Clerk 74,889 56,320 18,569 80,878 Other Genetal Government Personal Services 16,543 15,077 1,466 2,757 Operating Expanses 182,984 161,281 21,703 140,379 Capital Outlay 65,954 65,747 207 43,499 Grants and Aids 500 0 500 0 Total Ocher General Government 265,981 242,105 23,876 186,635 Total General Government 805,072 733,279 71,793 615,777 (Continued) -28- SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL GENERAL FUND FOR THE FISCAL YEAR ENDED SEPTElOIER 30, 1989, WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1988 CITY OF ATLANTIC BEACH, FLORIDA (Concluded) EXPENDITURES (Concluded) Public Safely: Lav Enforcement Personal Services Operating Expenses Capital Outlay Total Lav Enforcement Fire Control Personal Services Operatiog Expenses Capital Outlay Total Fire Control Protective IneDeLC ions Personal Services Operating Expenses Capital Outlay Total Protective Inspections Total Public Safety 1989 1988 VARIANCE FAVORABLE BllDGET ACTUAL (UNFAVORABLE) ACTUAL 876,854 $ 872,452 107,225 106,749 137,154 137,154 1,121,233 1,116,355 298,018 274,303 37,820 27,855 13.921 4,993 349,759 307,151 23,554 20,801 23,640 21,261 255 232 47,449 42,294 1,518,441 1,465,800 5 4,402 476 0 4,878 23,715 9,965 8,928 42,608 2,753 2,379 23 5,155 52,641 TransDDZ8t1on: Roads and Streets Personal Services Operating Expenses Capital Outlay Total Transportation 229,448 218,582 193,880 187,636 48,350 48,159 471,678 454,377 10,86b 6,244 191 17,301 Culture/Recreation: Parka and Recreation Personal Services Operating Expenses Capital Outlay Total Culture/Recreation 54,507 52,973 53,101 51,777 14,390 14,363 121,998 119,113 1,534 1,324 27 2,885 Internal Services: Personal Services Operating Expenses Capital Outlay Total Internal Services TOTAL EXPENDITURES 47,795 47,358 2,480 2,422 795 795 51,070 50,575 52.968.259 32.823.144 -29- 437 58 0 495 3 145.115 b 768,372 110,732 26,625 905,729 302,242 29,128 7,096 338,466 36,617 5,697 1,471 43,785 1,287,980 242,308 138,778 20,353 401,439 45,183 44,583 14,022 103,788 40,528 365 0 40,893 b2.449.877 1 1 1 1 SPECIAL. REVENUE FUNDS Special Revenue Punds are used to account for the proceeds of specific revenue sources (other than special asseesmente or major capital projects) that are legally restricted to expenditures for specified purposes. COMBINING BALANCE SHEET , SPECIAL REVENUE FUNDS SEPTEMBER 30, 1989, KITH COF~ARATIVE TOTALS FOR SEPTElIDER 30, 1988 CITY OF ATLANTIC BEACfI, FLORIDA ASSET S Cash and Investments Due From Other Governments , TOTAL ASSETS ' LIABILITIES AND PUND BALANCES LIABILITIE S Accounts Payable Due to Other Funds ' Deferred Revenues TOTAL LIABILITIES ' FUND BALANCES Reserved for Debt Service Reserved for Roads and Streec Expenditures , TOTAL FUND BALANCES ' TOTAL LIABILITIES AND FUND BALANCES -30. , 1 1 LOCAL OPTION GAS TAX 1989 1988 E562,337 3286,700 32,700 27,258 _595.037 1 958 RECREATION HISCELLANE005 GRANT GRANTS 1989 1988 1989 1988 5130,352 S O S O j 0 0 0 8,002 9,302 130.352 0 8.002 9.302 TOTALS 1989 1968 1692,689 E286,700 40,702 36,560 733.391 2 0 0 0 0 0 0 884 0 884 0 0 0 0 0 8,002 8,418 8,002 8,418 0 130,352 0 0 0 130,352 0 0 0 130,352 0 8 002 9 302 1 , , 38,354 9,302 148,308 0 0 0 0 0 148,308 0 446,729 313,958 0 0 0 0 446,729 313,958 595,037 313,958 0 0 0 0 595,037 313,958 i 595.037 £3~1 .2~@ 1 0 3 2 ~ 0 f 8.002 ;_ 9.302 5733.391 5323.260 -30- REVENUES Intergovernmental Revenue; Slate Shared Revenues Slate Grants City of .Tacksonville Gran[ Interesc Income TOTAL REVENUES EXPE[~TIITURES General Governmenc Physical Environment Culture and Recrea[ion (TOTAL EXPENDITURES) EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPEttDISURES OTHER FINANCING SOURCES (USES) Operating Transfers In (Operating Transfers Out) TOTAL OTHER FINANCING SOURCES (USES) EXCESS (DEFICIENCY) OP REVENUES AND OTHER FINANCING SOURCEE OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCES - BEGINNING OF YEAR FUND BALANCES - END OF YEAR -3l- r t 1 1 1 1 LOCAL OPTION RECREATION MISCELLANEOUS GAS TAX GRANT GRANTS TOTALS 1989 1988 1989 1988 1989 1988 1989 1988 ;344,828 ;353,017 ; 0 ; 0 ; 0 i 0 ;344,828 5353,017 0 0 0 0 49,341 21,481 49,341 21,481 0 0 24,648 0 0 0 24,648 0 4,720 0 4,181 0 0 0 8,901 0 349,548 353,017 28,829 0 49,341 21,481 427,718 374,498 0 0 0 0 2,362 32,365 2,362 32,365 0 0 0 0 82,211 0 82,211 0 0 0 28,829 0 0 0 28,829 0 0 0 (28,829) 0 (84,573) (32,365) (113,402) (32,365) 349,548 753,017 0 0 (35,232) (10,884) 314,316 342,133 0 0 0 0 35,232 L0,884 35,232 10,884 (68,469) (261,451) 0 0 0 0 (68,469) (261,451) (68,469) (261,451) 0 0 35,232 10,884 33,237) (250,567) 281,079 91,566 0 0 0 0 281,079 91,566 313,958 222,392 0 0 0 0 313,958 222,392 5595.037 5313.958 S 0 ~~ ;; it ~4 5595.0 I. 5313.95$ -31- EtrrEgpelse FUND Enterprise Funds are used [o account for operations that are financed and operated in a manner similar to private business enterprises, where the intent is that the coats (expenses, including depreciation) of providing goods or services to [he general public, on a continuing basis, be financed oz recovered primarily through user charges. COMBINING BALANCE SNEET ENTERPRISE FUNDS SEPTElIDER 30, 1989. WITH CON3ARATIVE TOTALS FOR SEPTEPIDER 30, 1988 CITY OF ATLANTIC BEACN, FLORIDA ASSETS Cash and Investments Accounts Receivable Inventor tea Due From Other Funds Due Prom Other Governments Other Current Assets Restricted Assets: Cash and Investments Cash in Escrow and Ni[h Fiscal Agents Conatructioa in Progress Property, Plant and EquipmenC - Net Intangible Asset - Right to Future Revenues - Net TOTAL ASSETS LIABILITIES AND PUND EQUITY LIABILITIES Current Liabilities (Payable Fzom Current Assets): Accounts Payable and Accrued Liabilities Due to Other Funds Current Portion of Revenue Honda Payable Customer Deposits Current Liabilities (Payable From Restricted Assets): Revenue Bonds Payable Interest Payable Revenue Bonds Payable - Long-Term Portion TOTAL LIABILITIES FUND EQUITY Contrlbu[ed Capital Retained Earnings: Reserved For Renewals and Rep lacementa Reserved For Debt Service O[het Reserves Unreserved TOTAL FUND EQUITY TOTAL LIABILITIES AND PUh9 EQUITY -32- WATER FUND 1989 1988 § 523,630 ; 451,197 43,821 44,670 30,884 38,778 0 0 0 0 389 670 0 49,971 0 0 500,498 93,419 1,388,293 1,423,575 r 0 0 2.487.515 2.102.280 143,818 26,773 0 0 0 3,368 167,204 138,220 0 0 0 0 0 18,625 311,022 186,986 1,016,351 876,386 0 49,672 0 0 0 0 1,160,142 989,236 2,176,493 1,915,294 2.467.515 52.102.280 e r 1 1 1 SEWER FUND 1989 1988 S 697,157 f 858,395 54,605 53,487 0 0 1,219 0 64,705 0 9,364 9,364 1,134,423 759,656 400,448 186,073 25,082 0 5,619,561 5,746,068 0 0 8.006.564 7.613.0 BUCCANEER DISTRICT WATER FUND SEWER FUND 1989 1988 1989 1988 E 215,578 § 145,318 S 628,341 S 300,271 34,284 29,066 43,771 46,778 7,492 2,377 0 3,116 5,775 0 6,235 0 0 0 0 0 0 0 0 0 131,120 103,238 1,132,095 798,993 0 0 0 0 0 105,223 0 47,820 1,560,039 1,346,215 3,145,428 3,049,819 0 0 0 0 1.954.288 1.731.437 4.955.870 4.246.797 86,477 73,263 6,444 14,023 6,116 9,728 0 0 1,219 0 0 0 0 0 0 0 0 0 0 0 109.995 87,779 0 0 65,000 60,000 0 0 0 0 26,123 27,338 0 0 0 0 1,225.000 1,290,000 775,939 816,448 1,587,761 1,670,652 1,402,600 1,450,601 893,597 918,250 1,593,877 1,680,380 3,237,200 2,847,736 546,489 413,624 1,323,826 930,169 907,161 431,152 131,120 103,238 1,132,095 798,993 309,324 295,214 0 0 0 0 227,263 132,025 0 0 0 0 1,923,016 2,456,315 383,082 296,325 906,072 837,255 6,603,964 6,162,442 1,060,691 813.187 3,361,993 2,566,417 38.006.564 57.613.043 f1.954.288 f1.731.437 34.955.870 f4.246.797 ' (Continued) -32- COMBINING BALANCE SHEET ENTERPRISE FUNDS SEPTEMBER 30, 1989, WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1988 CITY OF ATLANTIC BEACH, FLORIDA (Concluded) OAK HARBOR assETs Cash and Investments Accounts Receivable Inventories Due Prom Other Punde Due From Other Governments Other Current Assets Restricted Assets: Cash and Investments Invested Cash With Fiscal Agents Construction in Progress Property, Plant and Equipment - Net Intangible Asset - Right to Future Revenues - Ne[ TOTAL ASSETS LIABILITIES AND FUND EQUITY LIABILITIES Current Liabilities (Payable From Current Asaete): Accounts Payable and Accrued Liabilities Due to Other Funds Current Portion of Revenue Bonds Payable Customer Deposits Current Liabilities (Payable From Restricted Assets): Revenue Bonds Payable Interest Payable Revenue Bonds Payable - Long-Term Portion TOTAL LIABILITIES FUND EQUITY Contributed Capital Retained Earnings: Reserved For Renewals and Replacements Reserved For Debt Service Other Reserves Unreserved TOTAL FUND EQUITY TOTAL LIABILITIES AND FUND EQUITY -33- WATER FUND 1989 1988 $ 40,483 ; 0 2,987 0 0 0 0 0 0 0 0 0 8,613 0 0 0 5,775 0 127,414 0 140,686 0 325.958 0 1,162 0 43,657 0 0 0 3,060 0 1,593 0 7,618 0 285,088 0 342,178 0 0 0 0 0 8,613 0 0 0 ( 24,833) 0 ( 16,220) 0 S 325.958 1 1 e DISTRICT SEWER FUND SANITATION FUND TOTALS 1989 1988 1989 1988 1989 1988 S 3,516 S 0 ; 11,750E 170,189 E 2,120,455 S 1,925,370 5,064 0 4,442 5,065 188,974 179,066 0 0 0 0 36,376 44,271 37,882 0 0 0 51,111 0 0 0 0 0 64,705 0 0 0 0 0 9,753 10,034 16,303 0 0 0 2,424,554 1,711,858 0 0 0 0 400,448 186,073 63,786 0 0 0 595,141 246,462 274,526 0 325,826 168,605 12,441,087 11,734,282 300,981 0 0 0 441,667 0 704.058 0 342.018 343.859 18.776.271 16.037.4(6 59,361 0 31,267 87,295 334,645 211,082 6,235 0 0 0 51,111 0 0 0 0 0 0 3,368 0 0 0 0 280,259 225,999 3,407 0 0 0 70,000 60,000 16,382 0 0 0 50,123 27,338 609,912 0 0 0 4,483,700 3,795,725 695,297 0 31,267 87,295 5,269,838 4,323,512 0 0 0 0 6,123,866 5,067,915 0 0 0 0 2,170,376 1,383,055 18,303 0 0 0 336,240 295,214 0 0 0 0 227,263 132,025 ( 9,542) 0 310,751 256,564 4,648,688 4,835,695 8,761 0 310,751 256.564 13.506,433 11,713.904 $ 704.058 S 0 E 342.018 5343.859 f 18.776.271 -33- OPERATING REVENUES Customer Charges Other Income TOTAL OPERATING REVENUES OPERATING EXPENSES Personal Services Contractual Services Supplies Repairs and Maintenance Heat, Light and Pover Depreciation Amortization Other Expenses (TOTAL OPERATING EXPENSES) OPERATING INCOME (LOSS) NONOPERATING INCOME (EXPENSE) Sewer Rehabilitation Grant Connection Charges Sever Generation Charge Interest Income (Interest Expense) (Lose) on Asset Disposals TOTAL NONOPERATING INCOME (EXPENSE) NET INCOME (LOSS) BEFORE OPERATING TRANSFERS OTHER FINANCING SOURCES (IISES) Operating Transfers In (Out) NET INCOME (LOSS) DEPRECIATION ON FIXED ASSETS ACQUIRED BY SHARED REVENUES EXTERNALLY RESTRICTED FOR CAPITAL ACQUISITIONS INCREASE (DECREASE) IN RETAINED EARNINGS RETAINED EARNINGS, BEGINNING OF YEAR RETAINED EARNINGS, END OF YEAR -34- WATER FUND 1989 1988 S 300,894 E 293,545 15.129 19.644 316,023 313,189 125,146 122,074 5.200 10,340 32,301 56.124 12,943 11,351 29,184 32,095 80,285 76,627 0 0 32,228 19,618 ( 317,287) ( 328,229) ( 1,264) ( 15,040) 0 0 41,945 53,313 0 0 66,087 36,399 ( 1,433) ( 1,391) 0 0 106,599 88,321 105,335 73,281 ( 22,134) ( 19,256) 83,201 54,025 38,033 35,970 121,234 89,995 1,038,908 948,913 51.160.142 51.038.908 1 1 1 1 BUCCANEER DISTRICT SEVER FUND WATER FUND SEWER FUND 1989 1988 1989 1968 1989 1988 S 860,885 ; 843,494 ; 298,592 ; 237,438 ; 704,816 ; 613,117 18,258 6,732 22,974 29,882 29,195 6,431 879,143 850,226 321,566 267,320 734,011 619,548 L67, 605 193,619 58,685 37.670 63,328 40,820 113,402 94,148 20,054 54,403 77,215 69,160 52,402 74,639 20,609 32,154 14,446 20,468 508,032 177,890 6,658 3.424 19,059 8,329 114,833 118,093 6,113 7,203 43,354 41,321 253,003 194,246 51,029 44.440 100,748 97,823 0 0 0 0 0 0 33,360 32,731 13,995 4.578 17,924 8,364 (1,242,637) ( 885,366) ( 177,143) ( 183.872) ( 336,074) ( 286,285) ( 363,494) ( 35,140) 144,423 83.448 397,937 333,263 196,354 0 0 0 0 0 99,377 135,630 21,939 31,651 30,600 163,821 95,238 92,634 0 0 0 0 165,876 139,591 29.124 23.103 131,574 80,364 ( 108,135) ( 112,650) ( 73,480) ( 76,834) ( 150,359) ( 157,220) 0 0 0 0 0 0 448,730 255,205 ( 22,417) ( 22,080) 11,815 86,965 85,216 220,065 122,006 61,368 409,752 420,228 ( 139,309) ( 145,842) ( 18,680) 7.085 ( 34,064) ( 82,768) ( 54,093) 74,223 103,326 68,453 375,688 777,460 106,151 86,958 11,313 10.448 26,231 23,758 52,058 161,181 1i4,639 78.901 401,919 361,218 3,314,706 3,153,525 399,563 320,662 1,636,248 1,275.030 f 3.366.764 )3.314.796 ~ 4 ; 399.563 f2.036. 167 8.636.248 (Continued) -34- OPERATING REVENUES Cuatomex Charges Other Income TOTAL OPERATING REVENUES OPERATING EXPENSES Personal Services Contractual Services Supplies Repairs and Maintenance Heat, Light and Paver Depreciation Amortization Other Expenses (TOTAL OPERATING EXPENSES) OPERATING INCOME (LOSS) NONOPERATING INCOME (EXPENSE) Sever Rehabilitacion Gran[ Connection Charges Sever Generation Charge Interest Income (Interest Expense) (LO66) on Asset Disposals TOTAL NONOPERATING INCOME (EXPENSE) NET INCOME (LOSS) BEFORE OPERATING TRANSPERS OTNER FINANCING SOURCES (USES) Operating Transfers In (Out) NET INCOME (LOSS) DEPRECIATION ON FIXED ASSETS ACQUIRED BY SHARED REVENUES EXTERNALLY RESTRICTED FOP. CAPITAL ACQUISITIONS INCREASE (DECREASE) IN RETAINED EARNINGS RETAINED EARNINGS, BEGINNING OP YEAR RETAINED EARNINGS, END OP YEAR -35- OAE HARBOR 1989 1968 ; 1b,693 ; D 19.407 0 36.100 0 0 0 8,874 0 2,961 0 1,772 0 1,605 0 0 0 18.561 0 505 0 ( 34,298) 0 1,802 0 0 0 0 0 0 0 1,259 0 ( 13.506) 0 0 0 ( 12.247) 0 ( 10,445) 0 ( 5,775) 0 ( 16.220) 0 0 0 ( 16,220) 0 0 0 S( 16.220) S 0 1 DISTRICT SEVER FUND SANITATION FUND TOTALS 1989 1988 1989 1986 1989 1988 5 60,450 ; O f 617,461 f 442,923 f 2,859,791 E 2,430,517 37,882 0 6,451 0 149,296 62,689 98,332 0 623,912 442,923 3,009.087 2,493,206 0 0 306,211 283,460 720,975 677,643 7,382 0 38,528 20,825 270,655 248,876 2,288 0 23,695 27,358 148,702 210,743 2,374 0 26,854 19,314 577,692 220,308 2,661 0 0 0 197,750 198,712 0 0 36,778 30,515 521,843 443,651 39,752 0 0 0 58,333 0 583 0 32,605 5.796 131,200 71,087 ( 55,040) 0 ( 464,671) (387,268) (2,627,150) (2,071,020) 43,292 0 159,241 55.655 381,937 422,186 0 0 0 0 196,354 0 0 0 0 0 193,861 384,415 0 0 0 0 95,238 92,634 598 0 5,140 15,014 399.656 294,471 ( 26,894) 0 0 0 ( 375,807) ( 348,095) 0 0 ( 4,409) 0 ( 4,409) 0 ( 28,296) 0 731 L5, 014 504,895 423,425 14,996 0 159,972 70,669 886,832 845,611 ( 6,235) 0 ( 105,785) ( 68,790) ( 331,982) ( 309.571) 8,761 0 54,187 1,879 554,850 536,040 0 0 0 0 181,728 157,134 8,761 0 54,187 1,879 736,578 693.174 0 0 256,564 254,685 6,645,989 5,952,815 ~_ 8.761 f O S 310.751 S 256.564 S 7.382.567 S 6.645.989 -35- COMBINING BTATELMENT OF CHANGEB IN FINANCIAL POSITION ' ENTERPRISE FUNDS SEPTEMBER 30, 1989, WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1988 , CITY OF ATLANTIC BEACH, PLORIDA WATER FUND ' 1989 1988 SOURCE OF WORKING CAPITAL Net Income (Loss) § 83,201 § 54,025 ' Expense Not Requiring Outlay of Working Capital: Depreciation 80,285 76,627 Amortization 0 0 Total Working Capital Provided By Operations 163,486 130,652 Property, Plant and Equipment Disposals 0 0 Increase in Contrlbuted Capital 177,998 61,910 Decrease 1n Restricted Assets 49,971 74,587 , Nev Oebt 0 0 Increase in Current Liabilities Payable From Res[ric ted Assets 0 0 TOTAL SOURCE OF WORKING CAPITAL 391,455 267,149 USE OF WORKING CAPITAL Acquisition of Property, Plant and Equipment 452,082 191,256 Acquisition of Righ[e to Future Revenues 0 0 Increase in Re stric [ed Assets 0 0 , Fieduccion of Bonds Payable 18,625 3,390 Decrease in Interest Payable From Restricted Assets 0 0 , (TOTAL USE OF WORKING CAPITAL) ( 470,707) ( 194,646) IN WORKING CAPITAL (BELOW) INCREASE DECREASE ( 79 252) 72 503 , ( ) . . CHANGES IN WORKING CAPITAL BY COMPONENT , Current Assets - Increase (Decrease): Cash and Investments 72,433 113,870 Accounts Receivable ( 849) ( 2,102) Inventory ( 7,894) ( 7,690) Due From Ocher Punds 0 0 Due From Other Governments 0 0 Other Current Assets ( 281) 0 , Current Liabilities - (Increase) Decrease: Accounts Payable and Accrued Liabilities ( 117,045) ( 9,818) Due to Ocher Funds 0 0 ' Customer Deposits ( 28,984) ( 21,989) Current Fortson Revenue Bond Payable 3,368 232 INCREASE (UECREASE) IN WORKING CAPITAL (ABOVE) ¢( 79.252) f 72.503 t 1 -36- , e 1 BUCCANEER DISTRICT SEWER FUND WATER FI1ND SEWER FUND 1989 1988 1989 1988 1989 1988 ;< 54,093) ; 74,223 ; 703,326 ; 68,453 ; 375,688 ; 337,460 253,003 194,246 SL,029 44,440 100,748 97,823 D 0 D D 0 0 198,910 268,469 154,355 112,893 476,436 435,283 0 0 0 0 0 0 495,615 $8,255 144,178 32,894 419,888 80,454 0 181,689 0 62,591 0 0 0 0 0 0 0 0 0 0 0 0 0 p 694,525 538,413 298,533 228,378 896,324 515,737 151,578 356,028 159,630 L79,268 148,537 92,212 0 0 0 0 0 0 589,142 0 27,882 0 333,102 154,321 60.000 60,000 40,509 37,259 82,891 76,241 1,215 211,253 0 0 0 0 ( 801,935) ( 627,281) 228,021) ( 216,527) 564,530) ( 322,774) _( 107.410) ( 161,238) 1,118 0 1,219 64,705 0 ( 13,214) 0 0 0 S( 107.410) ( 88.868) 70.512 11.851 331.794 192.963 ( 65.251) 70,260 49,106 ( 8,547) 5,218 ( 11) 0 5,115 0 0 5,775 0 0 0 0 0 0 2,377 ( 15,070) 7,579 ( 4,261) 0 ( 1,219) 0 0 ( 22,21fi) ( 35,360) 0 0 0 ;( 88.868) j___JQ~S ; 11.851 328,070 ( 3,007) ( 3,116) 6,235 0 0 3,612 0 0 0 ;S"--- '1'' -~-~- 166,383 7,075 0 0 0 3,116 16,389 0 0 0 -36- 13 9?-963 (Continued) CONBINING STATEMENT OF CHANGES IN FINANCIAL POSITION ENTERPRISE FUNDS SEPTEN,BER 30, 1989. WITH CONPARATIVE TOTALS FOR SEPTEMEER 30, 1988 CITY OF ATLANTIC BEACH, FLORIDA (Concluded) SOURCE OF WORKING CAPITAL Net Income (Loss) Expense No[ Requiring Outlay of Working Capital: Depreciation Amortization Total Working Capital Provided By Operatiwne Property, Plant and Equipment Disposals Increase in Contribuced Capital Decrease in Restricted Asaeta New Debt Increase in Curren[ Liabilities Payable From Restricted Assets TOTAL SOURCE OF WORKING CAPITAL USE OF WORKING CAPITAL Acquisition of Property, Plant and Equipment Acquisition of Rights Co Future Revenues Increase in Restricted Aaseta Reduction of Bonds Payable Decrease in Interest Payable From Restricted Assets (TOTAL USE OF WORKING CAPITAL) INCREASE (DECREASE) IN WORKING CAPITAL (BELOW) CHANGES IN WORKING CAPITAL BY COMPONENT Current Assets - Increase (Decrease): Cash and Investments Accounts Receivable Inventory Due Prom Other Funds Due From Other Governments Other Current Assets Current Liabilities - (Increase) Decrease: Accounts Payable and Acczued Liabilit iea Due to Other Funds Customer Deposits Current PorCion Revenue Bond Payable INCREASE (DECREASE) IN WORKING CAPITAL (ABOVE) -37- OAK HARBOR WATER FUND 1989 1988 ;( 16,220) ; 0 0 0 18,581 0 2,361 0 0 0 0 0 0 0 285,088 0 9.211 0 296,660 0 1 1 1 133,189 0 159,267 0 ' 8,613 0 0 0 0 0 ( 30L,069) 0 ( 4.409) 0 40,483 0 2,987 0 0 0 0 0 0 0 0 0 ( 1,162) 0 ( 43,657) 0 ( 3,060) 0 0 f( 4.409) f 0 0 1 DISTRICT SEf7ER FUND SANITATION FUND TOTALS 1989 1988 1989 1988 1989 1988 ' ; 8,761 ; 0 ; 54,187 ; 1,879 S 554,850 S 536,040 0 39,752 0 0 36,778 0 30,515 0 521,843 58,333 443,651 0 48,513 0 90,965 32,394 1,135,026 979,691 0 0 29,409 0 29,409 0 0 0 0 0 1,237,679 263,513 0 0 0 0 49,971 338,867 609,912 0 0 0 895,000 0 ' 19,789 0 0 0 29,000 0 678,214 0 120,374 32,394 3,376,085 1,582,071 338,312 0 223,408 70,190 1,606,736 888,954 340,733 0 0 0 500,000 0 ' 18,303 0 0 0 977,042 154,321 0 0 0 0 202,025 176,890 ' 0 0 0 0 1,215 211,253 ( 697,348) 0 ( 223,408) ( 70,190) (3,287,018) (1,431,418) ' ( 19 134) 0 ( 103 034 ( . . ) 37.796) 89.067 150.653 ' 3,516 5,064 0 0 ( 158,439) ( 623) 22,532 1,450 195,085 9,908 286,640 ( 2,135) 0 0 0 0 ( 5,895) ( 7,690) 37,882 0 0 0 51,111 0 0 0 0 0 64,705 0 0 0 0 0 ( 281) 5,493 ' ( 59,361) ( 6,235) 0 0 56,028 ( 0 61,778) 0 ( 123,563) ( 51,111) ( 74,536) 0 0 0 0 0 ( 54,260) ( 54,349) 0 0 0 0 3,368 232 ;( 19.134) S 0 t( 103.034) S( 37.796) S 89.067 S 150.653 -37- FIDUCIARY FUNDS ' Piduclary funds are used to account fot assets held by the City in a trustee ' capacity or as an agent for individuals, private organizations, other governments, and/or other funds. 1 1 CONBINING BALANCE SNEET PIDUCL9RY FUND TYPES ALL FIDUCIARY FUNDS SEPTEMBER 30, 1989, WITH COlSARATIVE TOTALS FOR SEPTEMBER 30, 1988 CITY OF ATLANTIC BEACH, FLORIDA PENSION TRUST 1989 1988 ASSETS Caah and Investments $2,240,044 $1,840,898 Accounts Receivable 0 0 Due From Other Governments 53,179 47,738 TOTAL ASSETS 2.293.223 1.888.636 LIABILITIES AND FUND BALANCES LIABILITIES Accounts Payable 0 0 Deferred Compensation 0 0 TOTAL LIABILITIES 0 0 FUND BALANCES Reserved Por Police Training and Investigations 0 0 Reserved For Retirement 2,293,223 1,888,636 TOTAL fl1ND BALANCES 2,293,223 1,888,636 TOTAL LIABILITIES AND FUND BALANCES 52.293.223 51.888.636 -38- Cl 1 1 1 1 1 EXPENDABLE TRUST 1989 1988 S 2,117 5 5,584 0 30 0 0 2.117 5.614 450 0 0 0 450 0 1,667 5,614 0 0 1,667 5,614 2 11 14 AGENCY - LCNA 1989 1988 S 77,201 ; 66,719 0 0 0 0 721 6 71 0 p 77,201 66,719 77,201 66,719 0 p 0 p 0 0 7 1 f 66.719 -38- TOTALS 1969 1988 52,319,362 $1,913,201 0 30 53,179 47,738 2.372.541 1.960.969 450 0 77,201 66,719 77,651 66,719 1,667 5,614 2,293,223 1,888,636 2,294,890 L,894, 250 2 2 ~1 ,-g~ STATISTICAL SECTION Statistical schedules differ from financial atateme¢ta because they usually cover more than one fiscal year and may present nonaccounting data. 1 PENSION REVENUES BY SOURCE AND EXPENSES BY TYPE LAST TEN FISCAL YEARS CITY OF ATLANTIC BEACH, FLORIDA 1989 AMOUNT PERCENT 1988 1987 1966 PENSION REVENUES Contributions: Hember ; 18,710 3.85 ; 12,327 ; 4,205 City 114,106 23.5 126,740 76,884 ; 79.518 State - Police 38,576 7.9 35,140 32,614 25,246 State - Firefighters 14,603 3.0 L2,598 10,397 9,417 Investment Interest and Dividends 11,863 2.4 8,197 104,619 114,340 Cain or (Loss) 288,127 59.4 60,617 0 0 Correction 0 0 0 0 0 TOTAL REVENUES 4 5 8 1005 5225.619 f228.719 22 1 PENSION EXPENDITURES Benefits Paid ; 63,538 1005 ; 62,840 ; 53,796 ; 50,792 Administrative Expenses 0 0 0 0 0 TOTAL EXPENDITURES f 83.538 1005 6S 2.840 S 50.792 -39- 1985 1984 1983 1982 1981 1980 S 81,338 21.217 # 74,696 18 631 $ 63,939 1 ; 91,086 5101,123 S 69,539 8,204 , 16,856 5,123 5,246 12,102 4 670 10,537 10,735 , 4,188 3,876 119,272 (34,526) 103,048 0 91,719 89,997 66,431 46,184 0 0 0 0 0 0 0 0 0 3,786 1 50 21 22 17 027 1 7 E 79 182 2 1 4 3 3 .120 49,368 0 S 40,341 S 30,894 S 14,980 S 10,079 ; 9 330 0 0 2,040 0 , 0 4 8 40 41 0 4 17 0 1 0 L2.7~ _39_ COMPUTED PENSION CONTRIBUTION COMPARATIVE SCHEDULE ' LAST TEN FISCAL YEARS CITY OF ATLANTIC BEACd, FLORIDA CONTRIBUTION RATES FISCAL YEAR VALUATION pS PERCENTS OF DOLLAR CONTRIBUTION ENDING DATE VALUATION PAYROLL VALUATION FOR FISCAL YEAR SEPTEMBER 30 SEPTEMBER 30 GENERAL POLICE FIRE PAYROLL COMPUTED ACTUAL 1981 1979 13.19 14.71 16.03 ; 718,363 ; 99,732 ;115.848 , 1982 1980* 14.03 15.07 16.65 691,693 107,858 107,858 1983 1981* 9.91 12.31 13.34 696,719 83,765 84,308 1984 1982 9.36 12.38 13.23 781,763 91,451 110r 175 , 1985 1983 9.31 11.61 11.85 892,194 100,690 110x759 1986 1984 9.53 14.39 15.06 930,007 119,857 114x181 1987 1985* 9.17 9.15 7.71 1,138,958 111,550 119,895 1988 1986 9.24 8.36 7.64 1,277,843 122,759 174,478 1989 1987* 9.69 10.32 10.49 1,454,243 158,314 0 1990 1988* 9,20 11.55 9.36 1,716,170 184,687 0 * After changes in benefit provisions and/or ac[uarial experience estimates. 1 1 -40- , ' ANALYSIS OF PENSION FUNDING PROGRES S LAST TEN FISCAL YEARS CITY OF ATLANTIC BEACH. FLORIDA (6) UNFUNDED ' (1) (2) (4) PBO AS A NET ASSETS PENSION (3) UNFUNDED (5) PERCENTAGE FISCAL YEAR ENDING AVAILABLE FOR BENEFIT PERCENT (FUNDED) OBLIGATION FUNDED PBO ANNUAL COVERED OF COVESIED PAYROLL SEPTEMBER 30 BENEFITS (PBO) (1)/(2) (2)-(1) PAYROLL (4)/(5) 1979 ; 400,000 ; 598,000 66.95 ;198,000 ; 718,000 27.65 ' 1980* 525,000 768,000 68.4 243,000 692,000 35.1 1981* 697,000 848,000 82.2 151,000 697,000 21.7 1982 878,000 914,000 96.1 36,000 782,000 4.6 1983 1,023,000 1,012,000 101.1 ( 11,000) 892,000 0.0 ' 1984 1,196,000 ** ** ** 930,000 ** 1985* 1,342,000 1,221,000 109.9 (121,000) 1,139,000 0.0 ' 1986 1987* 1,520,000 1,695,000 1,341,000 113.3 (179,000) 1,703,000 99.5 8,000 1,278,000 1,454,000 0.0 0.6 1988* 1,889,000 1,918,000 98.5 29,000 1,716,000 1.7 * After changes in benefit provisions and/or actuarial experience estimates. ** Not available from ECS, Inc. actuarial valuation report. ' Malysis of the dollar amounts of net aseeta available for benefi ts, pension benefit obligation, and unfunded pension benefit obligation in Ssola tion can be misleading. Expressing the net aseeta available fox bene fits as a percentage of ' [he pension benefit obligation provides one indication of the syst em's funded status on a going-concern basis. Malyais of this percentage over time indicates whether the system is becoming financially stronger or xeaker. ' Generally, the greater this percentage, the stronger the system. The unfunded pension benefit obligation and annual covered payroll are both affected by inflation. Expressing the unfunded pension benefit obligation ae a percentage of annual covered payroll approximately adjusts for the effects of inflation and ' aids analysis of the progress being made in accumulating saff iclent assets to pay benefits when due. Generally, the smaller Chia percentage, the stronger [he system. -41-