Audit Report - 1986-19871
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CITY OF
1'~tlaoti.C ~iae~e - ~lezlda
ANNUAL FINANCIAL REPORT
SEPTEMBER 30, 1987
Delatte
Naski~+Sells
Ci:i!1~ rj
Deloitte
Haskins-Sells
Cenltied Public Accountants
Suite 1240
200 West Forsyth Sveet
Jacksonville. Florida 32202-4371
~904~ 354-a333
ITT Tele.: 4995642
Honorable Mayor and December 31, 1987
City Commissioners
City of Atlantic Beach, Florida
Dear Sirs:
We have examined the general purpose financial statements
of the City of Atlantic Beach, Florida (the 'City") for the
year ended September 30, 1987, and have issued our report
thereon dated December 31, 1987. Our examination was made
in accordance with generally accepted auditing standards
and the standards for financial and compliance audits
contained in the Standards for Audit of Governmental
by the U. S. General Accounting Office and, accordingly,
included such tests of the accounting records and such
other auditing procedures as we considered necessary in the
circumstances.
REPORT ON INTERNAL ACCOUNTING CONTROL
As part of our examination, we made a study and evaluation
of the system of internal accounting control of the City.
For the purpose of this report, we have classified the
significant internal accounting controls in the following
categories: cash receipts and disbursements, investments,
receivables, budgets, fixed assets, payroll, purchasing,
grants, debt administration and general ledger. Our study
included all the control categories listed above. The
purpose of our study and evaluation was to determine the
nature, timing and extent of the auditing procedures
necessary for ezpressing an opinion on the entity's
financial statements. Our study and evaluation was more
limited than would be necessary to express an opinion on
the system of internal accounting control taken as a whole
or on any of the categories of controls identified above.
The management of the City is responsible for establishing
and maintaining a system of internal accounting control.
In fulfilling this responsibility, estimates and judgments
by management are required to assess the ezpected benefits
and related costs of control procedures. The objectives of
a system are to provide management with reasonable, but not
absolute, assurance that assets are safeguarded against
loss Erom unauthorized use or disposition, and that
transactions are ezecuted in accordance with management's
authorization and recorded properly to permit the
preparation of financial statements in accordance with
generally accepted accounting principles. Because of
inherent limitations in any system of internal accounting
control, errors or irregularities may nevertheless occur
and not be detected. Also, projection of any evaluation of
the system to future periods is subject to the risk that
procedures may become inadequate because of changes in
conditions or that the degree of compliance with the
procedures may deteriorate.
Our study and evaluation made for the limited purpose
described in the second paragraph would not necessarily
disclose all material weaknesses in the system.
Accordingly, we do not ezpress an opinion on the system of
internal accounting control of the City taken as a whole or
any of the categories of controls identified in the second
paragraph. However, our study and evaluation disclosed no
condition that we believe is a material weakness.
Our study and evaluation did, however, disclose the
attached matters that, although not considered by us to be
material weaknesses, are weaknesses in internal accounting
control Eor which corrective action might be taken.
REPORT ON COMPLIANCE
The management of the City is responsible for the City's
compliance with laws and regulations. In connection with
our ezamination referred to in the first paragraph, we
selected and tested transactions and records to determine
the City's compliance with laws and regulations
noncompliance with which could have a material effect on
the general purpose financial statements of the City.
The results of our tests indicate that for the items
tested, the City complied with those provisions of laws and
regulations noncompliance with which could have a material
effect on the general purpose financial statements.
Nothing came to our attention that caused us to believe
that for the items not tested the City was not in
compliance with laws or regulations noncompliance with
which could have a material effect on the City•s general
purpose financial statements.
This report is intended solely for the use of management of
the City, the City Co'msission, and the Auditor General of
the State of Florida and should not be used for any other
purpose. This restriction is not intended to limit the
distribution of this report which, upon acceptance by the
City Comsission, is a matter of public record.
Yours truly,
DELOITTE HASRINS & SELLS
During the year ended September 30, 1987, all
recommendations brought to the attention of management in
the management letter for the year ended September 30, 1986
were addressed with the ezception of the following:
Pindina - The City does not presently use an encumbrance
accounting system in its Governmental Fund Types and other
budgeted funds.
Background - The City presently manages its ezpenditure
budgets by comparison of actual ezpenditures incurred to
budgeted amounts. This requires considerable judgment as
total ezpenditures approach their budgets in that the
Finance Department must accumulate and manually determine
the eztent of outstanding and in-process purchase orders
and estimate emergency ezpenditures. An encumbrance system
is a widely-used and valuable tool in this process. with
an encumbrance accounting system, the initial accounting
for ezpenditures begins with the purchase order or request
which is recorded on the system as an appropriation prior
to the actual a:penditure. This allows for more efficient
management of budgets as outstanding purchase orders
representing encumbered funds are recorded and accumulated
on the system.
Recommendation - The City should study the feasibility of
establishing an encumbrance accounting system over
ezpenditures in Governmental Pund Types and other Budgeted
funds.
During the ezamination of the financial statements as of
and for the year ended September 30, 1987 the following
conditions were noted:
INVERTORY
Finding - The City had an inventory consulting study done
in April 1987. Since that time the City has begun
implementing those recommendations. The following
recommendations have yet to be implemented by the City:
Recommendations:
A centralized Public Works inventory location should be
established which would include water and sewer parts
inventory.
An oil pump lock should be purchased and the pump
should be locked when not in use.
The stock room at the water plant should be locked and
materials removed should be logged out by part number,
quantity, and employee's name.
Water and sewer pipes and valves should be secured and
the water pipes should be segregated from the sewer
pipes.
PAYROLL
Finding - During the 19B7 fiscal year, the City instituted
a time clock requirement for all personnel. The time clock
procedures have been clarified several times during the
year through personnel memorandums. We recommend that the
City further improve the time clock process by implementing
the following comments.
Reconmendations•
All time clock policies and procedures need to be
consolidated into one document and be added to the City
personnel manuals at the Wert printing.
The policies should require employees and department
supervisors to sign time cards before submitting them
to the payroll department. Department supervisors
should also be required to initial any hand-written
entries on a time card.
Any overtime work should be accounted for on the time
card, including weekend work when the time clock is not
accessible and approved by the supervisor.
Public works time cards should be controlled by a
single individual who hands out time cards to the
proper employees and controls the time cards at times
other than clock-in, clock-out times.
The Rules of the Auditor General, State of Florida, require
that this report be filed with the Auditor General together
with audited financial statements.
Chapter 10.550, Rules of the Auditor General - Local
Government Entity Audits further require that this report
specifically address, but not be limited to, the matters
described in Rule 10.554(1)(K). Accordingly, in connection
with our ezamination of the financial statements of the
City, for the year ended September 30, 1987, we report the
following:
1. No irregularities were reported in the preceding
ezamination.
2. All recommendations made by us in connection with the
preceding annual financial audit have been followed or
adequately addressed except as noted in Section I of
this report.
3. Recommendations, if any, to improve present financial
management, accounting procedures and internal
accounting controls are addressed in this report.
4. During the course of our ezamination, nothing came to
our attention to cause us to believe that the City:
a) was in violation of laws,
rules and regulations;
b) made any illegal expenditures.
However, it should be noted that our ezamination was not
directed primarily towards obtaining knowledge of all
possible violations or improprieties and our study (and
therefore our procedures and tests) were limited as
described in the second and sixth paragraphs of this
report.
5. No improper accounting procedures were found within the
scope of our financial audit. Circumstances, if any,
involving the adequacy of accounting procedures are
addressed in this report.
6. No failures to properly record financial transactions
were found within the scope of our financial audit.
No inaccuracies, irregularities, shortages or
defalcations were discovered in the scope of our
ezamination.
The financial report for the year ended September 30,
1987 filed with the Department of Banking and Finance
pursuant to Section 218.32, Florida Statutes, is in
agreement with the annual financial audit report for the
same period.
In connection with our ezamination of the general
purpose financial statements of the City, for the year
ended September 30, 1987, in accordance with the
standards for financial and compliance audits contained
in the Standards for Audit of Governmental
Organizations. Programs. Activities. and Functions,
issued by the U.S. General Accounting Office; the Single
Audit Act of 1989; and the provisions of OMB Circular
A-128, Audits of State and Local Governments, we noted
no instances of noncompliance with laws and regulations
related to federal programs.
• e • • : w • • s
CITY OF
~YEa.rtic Geaelc - ~louda
]l6 ace.AN ROULF.VARD
P. U. RU%R6
ATLANTIC REACII. FIgRH)A 622J3
TELEPHONE I96i1 R193J"+
February 19, 1988
DLM 1! RAAI r )M
To: Richard L. Fe tZows, City Manager
From: Narr•y E. Royal, Finance Director
Irt response to ti]e auditors' management letter on
ir]terrotnL control, I would Like to offer the foLLowi>ag
Comments:
S +^r..vr ~L wwA>~,r„ SYCT M
To reiterate that I stated in response to LASL year's
management letter, an enat]mbrance system would provide
ggreater control over the issuance of otn• purchase orders.
However, in our City the i.ssunnce of purchase orders
gene>-a Zly only becomes a oritticaZ factor close to year end.
My persortaL experience with encumbrance has given me the
imp>•ession that they require a considerable amount aF effort
to mnintain. Given tits present growth rate, the Cicy of
Atlnrteic Beaeh will eventually need an encumbrmtce system.
Therefore, as soon as we install certain other system
upgrades that should create sufficient time to maintain such
a system, I isend to begin deveLoppting an encumbrance system
that will meet the City's needs. We have not been able to
insta Zl aLL of the upggrades during the ast year but we have
already begun the preliminary work needed for these apgrades.
IMDEHTOR}'
The 7'ublic Works Department ie stiLZ in the process of
limp Zementing the auditors recommendations that are FeastbZe
at this time.
PAYR(1LL
The time clocY. problems referred to by the auditors relate
epeciFicaLZy to Cite Pub Lia WorY.s Department. They are
currently being addressed by the Publte Works Department.
Si c~ere Ly,
Harry E. ~ ynL
Finance Director
HER/ksm
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CITY OP ATLANTIC BSACB
ANNUAL FINANCIAL BEPOBT
POR THE FISCAL YEAR ENDED SBPTEt~ER 30, 1987
Pane
Auditors' Opinion 3
General Purooae Financial Statemeata
Combined Balance Sheet - All Pund Types sad
Account Groups 5
Combined Statement of Revenues, Ezpenditurea and
Changes in Puad ealaacea - All Governmental Pund
Types and Ezpeadeble Trust Punda 30
Combined Statement of Raveauea, Ezpendituras and
Changea in Pund Balancers - Budget end Actual
(GAAP Basin) - A31 Government Pund Types 12
Combined Statement of Revenues, 6zpeasea and Changes
in Eetained Earnings/Pund Balance - All
Proprietary Yund Types sad Penaioa Trust Pund 14
Combined Statement of Changea is Financial Position -
All Proprietary Pund Types and Pension Trust Pund 15
No tea to Financial Statemeata
Combining and Individual Pund Statements 17
General Pund
Schedule of Ezpeadituree - Budget and Actual
Special Re
e 'F
d
35
venu
un
s
Combining Balance Sheet
38
Combining Statement of Raveauea, E:penditurea,
and Changea in Pund Balance
P iota
P d T - Eat
i P d 39
y
D
Combining Balance Sheet q2
Combining Statement of Revenues, ¢zpeaaea sad Changea
in Retained P,arnings 44
Combining Statement of Changea in Financial Position
Fid
iar
P
d 46
y
ua
uc
a
Combining Balance Sheet
49
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Statistical Sectioa
Passion Revenues by Source and 6zpeases by Type 53
Computed Pension Contribution Comparative Schedule 54
Analysis of Pension Pundiag Progress - Last Tan Years 55
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1 Deloitte
i Haskins-Sells
1 Certifietl Public Accountants Suite 1240
200 West Forsyth Street
Jacksonville. Floritla 32202-4371
~9%) 354-8333
1 ITT Telex: 4995%2
Ai1DITORR' OPINION
1 Ronorable Mayor, City Commission
and City Manager
1 City of Atlantic Beach, Plorida
We have ezamiaed the general purpose financial etatemeats of the City of
1 Atlantic Beach, Plorida, as of and for the year ended September 30, 1987,
as listed is the foregoing table of contents. Our ezamiaation vas made is
accordance with generally accepted auditing etaadarde and, accordingly,
included such teats of the accounting records and auc6 other auditing
1 procedures as re considered necessary is the circumstaacea.
In our opinion, the general purpose financial etatemeats referred to above
1 present fairly the financial poaitioa of the City of Atlantic Beach,
Plorida, at Beptember 30, 1987, and the results of its operations and the
chaagea in financial poaitioa of its proprietary fund types and peaaion
trust fund for the year then ended, in conformity with generally accepted
1 accounting principles applied on a baaia coasiateat with that of the
preceding year.
1 Our ezamiaation was made for the purpose of forming an opinion on the
general purpose financial atatementa of the City of Atlantic Beach,
Plorida taken as a whole. The combining and individual fund financial
1 statements listed in the table of contents are presented for purposes of
additional analysis and are not a required part of the general purpose
financial atatementa of the City of Atlantic Beach, Plorida. Such
information has been subjected to the auditing procedures applied in the
1 examination of the general pu[posa financial statements sad, is our
opinion, is fairly stated in all material respects in relation to the
general purpose financial statements taken as a whole.
1 The statistical section, as listed is the table of contents, has not been
subjected to the auditing procedures applied is the examination of the
general purpose financial atatementa and, accordingly, we a:press no
1 opinion.
1 ~~,~ 4yOalCh.o ~~
1 December 31, 1987
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' ~~FNS'S~n3 Pt7RPOSS FINANCIAr TATE~NT
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1 oor~oso
CITY OF ATLANTIC BEACH, FLORIDA
CONBINEO BALANCE SHEET
ALL FUND TYPES ANO ACCOUNT GROUPS
Govermentsl Good Tvoes
Special Oebt EiDi tat
Notes n r l R v n rvi Proieets
ASSETS
[ash and investments 2 (1,130,689 (198,727 f23,5d8 (103.983
Other cash and fnvestants
Accounts receivable 263.619
Allorance for doubtful accounts
Inventories 27,895
Due from other governcents 32,566
Due frog other funds 8 3,665
Deposi is 5,000
Prepaid expenses 86,666 380
Other assets
RestrictW assets:
Cash and invsctments 2
Invested cash ri th ftscal agent 2
Due from other governants
ConstrucH On in Drogross 3
property. plank and
equipemnt -net 3
AMUnt available in the
debt service fund for
payant of long-tern debt
Mount to be provided for
payment of long-tarn bonds
Mount to be provided for
payment of long-tern
portion of capensated
absences
TOTAL ASSETS 51"517"352 fjj]aj~ fj~s jg ttOk gBa
See notes to financial statements.
(continued)
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Proprietary Fiduciary
Lund Tvoes Lund Tvges Account Grouos
Expandable General General Totalz
and Pension Long-Tern fixed (M d 0 1 1
En terorise Trust Obligations Assets ~Z ~(
(1,638,730 (/,709,960 (4.805,637 (3,775.844
84,626 84,626
199,201 24 462,844 346,082
(18,000) (18,000)
~•~ 70,363 63,217
32,564 25.611
3.485 25,614
5,000 5.000
87,044 61,760
10,034 10,034 10,034
1,657,818 1,657,818 1,605,510
310,923 310.923 693.705
113,.'36 113.736 351,322
1,130,100 1,130,100 995,871
10,405,302 2,271,790 12,677,132 10,062,236
23,860 23.860 23.874
789.941 789,941 535,880
515.494.352
51.794.610 99.249
tgla Ocn
52.2]1.790 99.249
an _acn,asc 5 77.726
18.659.219
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CITY OF ATUNT[C BEACH, LLO0.IDA
COMBINED BALANCE SNEET
ALL FLNO TYRES AND ACCOUNT GROUpS (Continued)
Notes
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Geverrnental fund Tvoes '
Special Debt Capital
0enerai R°vanue 6erviea Protects
LIABILITIES Ak0 FUND EQUITY
LIABILITIES:
Accounts Dayable and
accrued slabs li tf es f %,992 S 6,410 f 67 f 95,5%
Due to other funds 3,086
Current portion of revenue
bonds payable 4
Current liabilities (payable
from restricted assets):
Accounts payable
Contracts payable
Revenue bonds payable 4
Accrued interest payable
Revenue bonds payable -
long-tern portion d
Oepott tt 6,OOD
Deferred compensation 6
General obligation bonds 4
Revenue bonds payable
Accrued compensated absences.
long-tern 4 _
Total liabilities lal.99z 8"899 _~Z 95.5%
fl1ND EQUITY:
Contributed caDi tai
Investment in general fixed assets
Retained earnings:
Reserved for ren¢wAls
and replaceswnts
Reserved for debt service
Reserved for construc[i on
Unreserved retained earnings
Fund balances:
Resa rved for Daynent of
long-Leon debt 23,861
Reserved for prepaid espenses 86,664
Reserved for inventories 27,895
Reserved for police training
and invests 9ati ons
Reserved for yeti ranenk
Other reserves 82,658
Unreserved fund balances 1.218.103 222.392 8.387
Total fund equity 1.015.360 222.392 23.861 _ 8.387
TOTAL LIABILITIES AND fIRLD EQUITY 37 17 as Stal X91 fj~8 t10'+ 9Ba
See notes to financt al statments.
(j~1:)~9.3 "B"
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Proprietary Fiduciary
Fund Tvpes Fund Tvoes AcCOUnt Groups
Expendable General General
and Pension Long-Tern Fixed
Enteror5 se Trvst Oblf nations Assets
S 136,541
3.600
103,810
111,339
55,000
28,438
3.972,615
168,650
f 84.626
5262.000
551,801
99.249
4.580.000 84.626 913.050
4,961,537
12,271,790
1,444,830
227,484
111,571
4,168,930
15,197
1,694,787
10.914.352 1709.984
(15.444.352 fl.]^4.610
2.271.790
f97~.050 52.2]1.790
Totals
(Mesa randun Onlvl
~Z ~$¢
f 334,613 f 242,194
3,485 25,614
3.600 2,219
103,816 101,114
111,339 45,093
55,000 145,500
28,038 155.638
3,972,615 4,135.080
173,650 124,387
84,626
262,000 307,000
551,801 252,754
99.249 77.726
5.784.230 S.fi 14.119
4,961,537 3,658.713
2,277,790 1,571,017
1,444,830 1,268,547
227,484 222,291
111,571 712,055
4,168,930 2,417,664
23,861 23,876
86.664 61,760
27,895 19.086
15.197 25.875
1,694,787 1,514.864
82,658
1.448.922 1.544.364
16.566.)26
922.1s0.aca 13 045.110
S1A.6S9.239
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CITY OF ATLANTIC BEACH, LLORIDA
CONNED STATEMENT OF REVENUES, EXPENDITURES AND CWINGFS IN FUND BALANCES
ALL GOVERNMENTAL FlIND TYPES AND E%PENDABLE TRUST FUNDS
FOR THE YEAR FISCAL ENDED SEPTEMBER 30. 1987
G t 1 F d T
Special Oebt [api tal
Notes n r 7 Revenue Sa rvice Protects
Revenues:
Tales f 654,390 (314,561 (61,550
L;cens es and parni is 509,819
Federal shared revenues flg7
State shared revenues 772,100 20,908
Other intergovermentsi revenues 13.604
Charges for services 3,139
ii nes and forfeitures 96.404
Court cost
Confiscated property
Interest intone 88,241 1,845 1,577
Miscellaneous revenue 26.712
Total revenues 2.164.409 338.195 1 7
Expenditures:
Currant:
General goverment 755,287 20,908
Publtc safety 1,134,429
Aoads and streets 411,456
Intergovermantal services 36,671
Parks and recreation 53,389
Oebt service:
Principal reti repent 67,864
Interest and fiscal charges 34,897
Capital Outlay f633.792
Total expenditures 2.389 232 20.908 1 7 1 633.792
Excess of revenues over (under)
expenditures (224.823) l7 (39.634) (6;3.792)
Other financ inq sources (uses):
8ontl proceeds 315.601
Operating transfers in 8 ;47,360 39,621 92,169
Operating transfers (out) 8 (39.621) 5153.252)
Total other finanN ng sources (uses) 307.739 (153.252) 39.621 407.770
Excess of revenues and other sou rtes
over (under) expenditures and
other uses 82,916 164,035 (13) (226.022)
FunE balances, October 1, 1986 1.332.444 58 357 23.874 234.409
Fund balances. SeDtenber 30, 1987 C1.41c x60 ~~Z S 23.861 S R.38)
See notes to financial statements.
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fiduciary
land Totals
Eapendabl• (Meno randun Onlv)
T~~ .T.f ]3BI ~E
(1,030,501 f 609,773
509,819 486,790
881 48,612
793,008 758,653
13,604 15,427
3,139 3,137
96,400 90,253
f 407 OOJ 4,252
1,127 1,127 1,763
1,098 92,761 96,349
_ 26.712 17.229
2.632 2.558.363 2.732.238
776,195 517,544
13,310 1,147,739 925,823
411,456 427,891
34.671 19,821
53.389 79,913
67,864 42,000
3d,897 21.870
_ 633.792 169 226
1 1 3.760.003 2.204.088
1 7 ) 1591.640) (71.850)
315.601 247,798
479,150 328,097
(192.873) (20.703)
601.878 555.186
(70,678) 10.238 463,336
25 875 1.674.959 1.191.623
S 1 S 197 ~..~+,~ f 7.674.959
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CITY OF ATLANTIC BEACH, iIOR(DA
COMBINED STATEMENT OF REVENUES. FXPFNOITURES ANO CHANGES IN FUID BALANCES
BUDGET (GAAP GASIS) AND ACTUAL
ALL GOVERNMENTAL fUNO TYPES
FOR THE iISGL YEAR ENDED SEPTEMBER 30. 1987
Genoral Fund SoeeS al Ravenna Funds
Variance Variance
favorable Favorable
Budeet Actual (Unfave rabl a) Bud°et Aetual (Unfavo ra61e1
Revenues:
Tases f 558,800 f 654,390 f 95.590 (288.000 (314,561 f26,561
Licenses and pewits 445.300 509,819 61,519
Federal shared revenues 881 881
State shared revenues 795,417 772,100 (23,317) 21,424 20,908 (516)
Other intergovarmental revenue 13,000 13,604 604
Charges for services 17,200 3,139 (14,061)
Fines and forfeitures 60,000 96,404 36,404
Special asiessernts
Interest incpne 60,000 88,241 28,241 1,845 1,845
Xiscellaneous revenue 17.083 26.712 9.629
Total revenues 1.966.800 X160.409 197.609 1 1 338.195 26.045
Expenditures:
Current:
General goverment 830,709 755,287
Public safety 1,166,831 1,134,429
Reads and streets 429,015 411,456
]ntragovermental services 34,685 34,671
Parks and recreation 53,412 53,389
Debt service:
Principal reti recant
Interest and fiscal charges
Capital outlay
Total expend( lures 2.514.652 2.389 232
Excess of revenues over
(under) expendi [ores (547.852) (224.823)
Other financing sources (uses):
Bond procaedc
Operating transfers in 3p,360 347,360
Operating transfers (au t) (113.510) (39.621)
Total other finan<i ng
sources (uses) 233.850 307.739
Excess of revenues and other
sources over (under)
eapendi [o res and other uses (314,002) 82,916
fund balances. October 1, 1986 1.332.444 1.332.444
fund balances, September 30,
7987 21.078.442 S
See notes to financial ttatenenls
75,422 21,124 20,908 516
32,402
17,559
14
23
1 4 21.424 za.9DS 516
323.029 290.726 317.287 ~,~)
73.889 (34s.De3) (153.252) 195"831
23.8&2 (349.083) 1153.152) 1 t
398,918 (58,357) 164,035 222,392
58.357 58.357
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Totals
Oebt Service Pond goital Prot ects land ( Menorandun O nly)
Variance Variance Va ri ante
Favorable Favorable Favorable
Budget Actoal (Unfavorable) 8udaet gs.L9a1 (Unfavorable) 8odaat Stus1 LUnfavorable)
563,323 S 61,550 S (1,773) 5910,123 (1,030,501 5120,378
445,300 509.819 64,519
881 881
816,841 793.008 (23,833)
13,000 13,604 601
17,200 3,139 (14,061)
60.000 96,401 36,404
S 150,000 f(150,000) 150,000 (150,000)
1,500 1,577 77 63,345 91,663 28,318
17.083 26.712 9.629
66.823 1 7 (1.696) 150.000 (150.000) 2.493.773 2.565.731 71.958
852,133 .776.195 75,938
1,166,831 1,134,429 32,402
429.015 411,456 17,559
34,685 34,671 14
53.412 53,389 23
105,375 67,864 37,511 705,375 67,864 37,511
53.190 34,897 18,293 53,190 34,897 18,293
1.270.100 633.792 636.308 1.270.100 633.792 636.308
158 5§~ 1~$~j¢1 55.604 1.270.100 633.792 636.308 3.964.741 3.146.693 818.048
742) (39.634) 54.108 (1.120.100) (fi33.792) 486.308 (1.470.968) (580.962) 890.OOfi
430,746 315,601 (115,145) 430,746 315,601 (115.145)
93.742 39,621 (54,121) 288,000 92,169 (195.831) 729,102 479,150 (249,952)
(462.593) (192.873) 269.720
~~ 39.621 I54. 121) 718.746 77 (310.9]6) 697.255 601.878 (95.377)
(13) (13) (401,354) (226,022) 175,332 (773,713) 20,916 794,629
_ ?3.@74 ~2 ,Q74
f 23.9]j S 23.Bfi1 S 234.409
(13) S (166.945) 234.409
S 8.387 S 1.649.084
1]5.332 t e7c a71 1.649.084
S1.fi70.000 S 794"fi29
- 13 -
CITY OF ATLANTIC BGCH, FLORI dt
COMBINED STATEMENT OF REVENUES, IXPENSES AND CHANGES IN RETAINED EARNINGS/NND BALANCE
ALL PROPRIETARY i18i0 TYPES AND PENSION TRUST fU(D
FOR THE FISGL YEAR ENDED SEPT ENBER 30 1987
ProPri etary fiduciary
Goods Fund
Totals
Pension (Menorand un Onlvl
NgjRa Enterorise trust ~ ]9$~
CperaH ng revenues:
Customer charges f2,261,400 f 2,261,400 f1,897,607
Employe r•s contributions 5 f 76,884 76,884 79,518
Employee's contributions 5 4,205 4,205
State contributions 5 03,011 43,011 34,663
Earnings on invettnants 101,619 _
104,619 114,3/0
Other intone 95.8% 95.8% 104.73,}
Total operating revenues 2.357.2% 228.719 2.586.075 2.230.851
Operating espenses:
Personal services 511,647 511,647 457,397
Contractual services 429,376 429,376 322,103
Supplies 97,240 97,240 155,355
Repairs and naintanance 95,292 95,292 86,336
Heat, light and powr 175,765 175,765 137,705
Depreciation 353.379 353,379 237,361
Other expenses 76,113 76.113 55,536
Rati repent benefits 5 53.7% 53.7% 50,792
Total operati n9 espenses 1.738.812 53.7% 1.792.608 1.502.583
Operating intone 618.480 174.923 793.407 728.268
Non-operating intone (espenses):
Conn action charges 924,176 921,176 1,303,411
Sever generation charge 89.585 89,585 43.130
Interest intone 236,091 236,091 245,645
Oonati ons 18 406
interest espense (361.638) (361.638) (372.610)
Total non-operating income 888.214 888.214 7.237.982
Net intone before operating transfers 1.506.698 174.923 1.681.621 1.966.250
Ope raN ng transfers (out) (286.277) (286.277) (307.388)
Net intone 1,220,421 174,923 1,395.344 1,658,862
Add depreciation on fised assees acquf red
by shared revenues externally rettri cted
for capital ac9uisi li ons 111.837 111.837 44.517
Increase in retained earnings/fund balance 1,332,258 174,923 1,507,181 1,703.379
Retained earnf ngs/fund balance,
October 1, 1986 4.620.557 1.519.864 6.140.421 4.137.042
Retained earnings/fund balance,
September 30, 1987
Sea notes to financial statements
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CITY OF ATLANTIC BEACH, iLORIOA
COMBINED STATEMENT OF CHANGES IN iINANCIAL POSITION
ALL PROPRIETARY NNO TYPES AND PENSION TRUST FUND
FOR THE FISCAL YFAR ENDED SEPTEMBER 30 19A7
Proprietary Fiduciary
Funds Fund
Totals
Pension (Memorandum Only)
EnterO rise Trust
financial resources rare provided by:
Operations:
Net incom
Item not regviHn9 rorking capital during
the period -depreciation
Morking capital provided by operations
Increase in coot ri bated capital
Decrease in restri <ted assets
Oispos al of property, plant and equipment
Increase in long-tem debt
Increase in current liabilities
payable from restricted atsets
Total sources of rorking capital
iinanct al resources rere used for:
Acqui sf ti on of property, plant and equipment
Increase in restricted assets
Reduction of bonds payable
Oec rease in current It obi lilies payable
from rest ri<ted assets
Total uses of rorking capital
Net increase in rorking capital
Changes in Caaponents of Morking Capital:
Increase (decrease) in <urren[ assets:
[ash and investments
Accounts receivable
Alloran<e for doubtful accounts
Inventortas
Other current assets
Increase in current assets
(increase) decrease in current liabilities:
Accounts payable and accrued liabilities
Interest payable
Customer deposits
Current portion revenue bond payable
(Increase) in current liabilities
Increase in rorking capital
See notes to financial statments.
(1,220,421 (174,923
353.379
1,573,800 174,923
1,414,661
786,455
73.946
3.8A8.862 174.923
2,401,791
218,394
162,465
222 500
3.005.150
s s43.71z 5174.923
f 897,457 5174.923
47,320
ne,ooD)
2,335
929.112 174,Qj~
(34,758)
(49,261)
(1.381)
(85.480)
~~ S17q,g2i
- 15 -
51.395,344 =1,658,862
353 379 237 3b1
1,748,723 1,B%,223
1,414,661 2,380,185
786,455 679,150
1,451
27,799
73.946 234 779
4.023.785 5.219.587
2,401,797 4,177,741
218,394 680,806
162,465 145,500
222.500
3.005 150 5.006.047
<7 019 6ac S 215.560
51,072,380 S 208,260
47,320 47,133
(le.ooo)
2,335 545
1.104 035
(34,758) (39,704)
37,217
(49,261)
(1.381) (37.578)
(85.400) (40 065)
f 1.018.635 S 215.540
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CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OP SIGNIFICANT ACCOUNTING POLICIRS
The City of Atlantic Beach, Florida ([he "City") is incorporated and
operates under a form of government which comprises an elected City
Commission (four Commisaioaers and a Mayor-commissioner) and provides, under
the admiaiatration of n eppoiated City Manager, the folloviag aervicea:
public safety (police and fire), public rocks (atreeta and infrastructure),
recreation, sanitation, planing, zoning, vale[ and serer services sad
general administrative aervicea.
The folloviag is a summary of the more aigaificant policies used is the
preparation of these financial statements.
A. YUND A00021NTING
The accosts of the City era organised oa the basis of fads or aceou¢t
groups, each of which is coaaiderad a separate accosting entity. The
operations of each fund are accosted for uainq a separate set of
self-balancing accosts rhich comprise its aaaeta, liabilities, fad
equities, revenue and ezpenditurea or ezpenaea. The various fads are
grouped by type is the finnciel atatemeata. The folloviag fad types
nd accost groups are used by the City:
Gove t 1 P d
General Pund - The Genezal Psd is the general operating fad of the
City. It is used to account for all financial reaoureea ezcept those
required to be accosted for in another fad.
Special Revenue P d - The Special Revenue Psds are used to account
fot the proceeds Of apacific revenue soutcea (other than major capital
projects) that are legally restricted to ezpenditurea for specified
purposes.
Debt Service Yund - The Debt Service Psd is used to accost for the
accumulation of reaourcea for, nd the payment oE, long-term debt
principal, interest sad related costa other than boada payable from
the operations of the enterprise fade.
aoi al Proi P~~A _ Capital projects Funds are used to account for
financial reaourcea to be used for the acquisition or construction of
major capital facilities (other than those financed by proprietary sad
special revenue funds).
- 17 -
i~JJiJ~
CITY OF ATLANTIC BEACB, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Prop 'eta Pund
Enterprt se F ds - Enterprise Punda are uaed to account for eater,
sewer and sanitation operations which are financed and operated in a
mamer similar to private buaiaeaa eaterpriaea. The coats of
providing goads or aervicea to the general public are financed or
recovered primarily through user charges.
Ptduciarv Puud
Trust and AaenFl. Punda - Trust Puads are used to account for aaaeta
held as a trustee or agent by tke City for others. The Peasioa Trust
Pund is accounted for in eaaeatially the name manner as proprietary
funds. The Ezpeadable Trust Puad is accounted for in essentially the
soma manner as governmental funds. Agency fuada are custodial is
nature (aaaeta equal liabilities) sad do not involve measurement of
results of operations.
1
O 1 L a-T 061' 3 A - Thia account i
group
s
used to account for the outataadinq
princ
ipal balances of
long-term ,
debt and other long-term liabilities other thaw those payable from the
operations of the enterprise funds.
Gene al PS ed A= t A - Thie account group is uaed to '
account Eor all fized aaaeta of the City other than those accounted
Eor is the Eatetpriae Punda.
~ '
B. 3)ASI
OP A CCOS„nrrING
The accounting and reporting treatment applied to a fund is determined by
its measurement focus. All Governmental Punda and E:pendable Trust Puadn
are accounted for on a spending or "flaaacial Elor" measurement focus.
This means that only current assets and current liabilities are generally
included oa their balance sheets. Their reported fund balance (net
current assets) is considered a measure of "available spendable
resources." Governmental fund operating atatemeata preaeat iacreaaee
(revenues sad other financial sources) and decreases (ezpeadi [urea and
other financing uses) is net current aaaeta. Accordingly, they are said
to present a summary of sources sad uses of "available spendable
resources" during a period.
The Governmental Puad Types sad [ha Ezpendable Trust Puad use Che
modified accrual basis of accounting. Under the modified accrual baaia,
zevenuea are recognized in the accounting period in rhich they become
available and measurable. ¢speadi[urea, cthar thaq in[erea[ on general
long-term debt rhich is recorded vhea due, are recognized is the
accounting period rhea incurred.
- 18 -
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CITY OF ATLANTIC BEACH, FLORIDA
' NOTES TO PINANCIAL STATEMENTS
SEPTEMBER 30. 19a]
1 All Proprietary Punds sad the Peasioa Trust Pund are accounted for oa a
cost of services or "capital maintenance" measurement Eocus. This means
that all assets sad all liabilities (whether current oc son-current)
' associated with their activity are included oa their balance sheets.
Their reported fund equity (set total assets) is segregated into
contributed capital and retailed earnings components. Proprietary fund
type operating statements present increases (revenues) sad decreases
' (expenses) in net total assets.
The Proprietary Fuad Types and Peasioa Trust Puad use the accrual basis
' of accounting. Revenue is recognized when earned and ezpeases are
recognised when incurred. Water, sewer and sanitation services are
billed to customers in advance on a quarterly cycle. A receivable is
recorded at year end for unpaid (delinquent) billings less an allowance
Eor those considered uacollectible.
C. BUDGETB
' General gover~nental revenue sad ezpenditures accounted for is budgetary
funds are controlled by a budgetary accounting system is accordance with
' various legal requirements which govern the City's operations. The City
currently does not use an eaeumbrance accounting system.
Budgets have been adopted for all Gover~nental Ponds (General, Special
' Revenue, Debt Service and Capital Projects Punds). The City Manager is
authorised to trmsfer budgeted amounts within departments within any
fund, however, any revisions that increase the total ezpeadituree of any
' department or fund moat 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 oa the Combined Statement
' of Revenues, Bzpenditures sad Changes in Puad Balance - Actual and Budget
- is prepared on a CAAP basis.
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D. CASH AND__ INVESTMEHRyC
Investments are stated at cost which approzimates market. Except where
prohibited, cash resources of the individual funds are combined to form a
pool of cash and investments. Isvestmenta in the Pooled Cash Puad
consist primarily of invested cash sad certificates of deposit which
mature in one year or less. Interest income earned oa the pooled cash
sad investments is distributed to the appropriate funds based on the
average monthly balance of investments is each fund. "Other cash sad
inves tmests" repreaesta employee deferred compensation whtth is managed
by the International City Managers Association (ICMA).
In addition to their equities in the pooled cash fund, cash of the
Enterprise and Pension Trust Punds includes interest bearing deposits
held by the State Board of Administration which aza restricted as Co
their use.
- 19 -
CITY OF ATLANTIC HEACH, PLOBIDA
NOTES TO FINANCIAL STATElBNTS
E. INVRNTORIRS
Inventories coasiat principally of expendable materials, supplies and
fuel and era valued at the lover of coat (first-in, first-out) or market.
Inventory in the General Fund is recorded ae an ezpeaditure at the time
of purchase (purchase method). The inventory balance reported is offset
by a fund balance reserve rhich indicates that it does not coaetitute
"available spendable resources" even though it is a component of net
current asaeta.
F.
Certain enterprise fund aaaets are rewired to ba segregated from other
current asaeta due to various bond indenture agreements and City
Ordiaancea. These asaeta era legally restricted for specific puzpoaea,
auc6 as debt service, ner construction, and reaerale and replacements.
G. AC O IN- POR YI D c Tc
Proprietary Yunda - Capital espenditurea made fez revenue-producing
asaeta, which are employed io oparetiona that are accounted for in the
proprietary funds, are capitalized at historical coats and depreciated
using the straight-line method over their estimated useful liven as
follova:
Buildiaga and improvements 00 years
Improvements other than buildings 10 - 50 years
Equipment 3 - AO years
Contributed assets era recorded at fair market value at the date of
Contribution. Depreciation recognized on asaeta acquired or constructed
through reaourcea externally restricted for capital acquisitions is
closed to the appropriate contributed fund equity account.
eneral Pized Aaae a A •a ro:o - Pized asaeta used in govermiental
fund type operations are accounted for is the General PS:ed Aa9eta
Account Group, rather Chan in governmental funds. All fized aaseta are
valued at historical coat. Donated fized asaeta are valued at their
estimated Eair value on the date donated. No depreciation has been
provided on general fized asaeta. publSc domain ("iafraatructure")
general fized aaseta such as streets sad aideralka that ace generally
immovable and of value only to the City of Atlantic Beach have not been
capitalized.
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CITY OP ATLANTIC BEACN, PLOHIDA
NOTES TO FINANCIAL STATEt•D;NTS
H. ACCOCOrrING POR LONG-TER.w OB I •aTrnuc
Long-term obligations, general obligation or revenue bonds, used to
finance proprietary fund operations and payable from revenue of the
proprietary funds are recorded is the applicable Eund. General
obligation bonds and other forma of long-term obligatioan supported by
general revenue are obligations of the City ae a thole sad not its
individual constituent Eunds. Accordingly, each unmatured obligations of
the City are accounted for in the General Long-Term Obligations Account
Group.
I. GENERAL LONG-TE[Cw COMPENSATED AHSEN
Accumulated unpaid vacation and nick pay are accrued when incurred in
proprietary funds. The amount of accumulated vacation and sick pay
recorded in the governmental funds is that amount, adj anted to currant
salary costs, which is expected to be liquidated with ezpeadable
available financial resources. Only the currant portion is reflected is
the fundn. Tha remainder of the liability is reported in the General
Long-Term Obligations Account Group. The guidelines of Financial
Accounting Stmdarda Board Ste[emeat No. 43 rare applied in detemiaiaq
the liability for both governmeatal and proprietary funds.
J. PROPERTY 7AXE5
The aseeasment of all propwrties sad the collection of all property [azea
are made through the Property Appraiser and Taz Collector of the City of
Jacksonville. General property taxes are recorded as received in cash,
which approximates ta:ea levied, leas diacounta, for the current fiscal
year.
R. 1NTERPUND TRANSACTIONS
Duriaq the course of normal operations, the City has various tranaactiona
betreen fundn to construct assets and comply with local ordinances sad
other legal restrictions. These transactions are reflected as operating
transfers.
L. PENSION TRUST FUNDS AND PENSION EXPE cP
The City accounts for its Pension Plans under Financial Accounting
Standards Board (PASB) Statement No. 35 "Accounting and Reporting by
Defined Benefit Pension Plana". The pension plane cover aubataatially
all of the City's full time employees. The City records penaioa coa[a in
the period salaries are earned. Pension ezpeaee includes normal coat
plus amortization of past service coat over 25 years.
- 21 -
~;U:)iOb
CITY OF ATLANTIC BSACN, PLOHIDA ,
NOTBS TO FINANCIAL STATElQ:NTS '
SHPT@7~@R 30. 1987
M. DSP@@@HD COMP@NSATION PLAN '
This City reports its Internal Heveaue Code Seetion 957 deferred
compensation plan as m agency fund is nccordance rith Governmental '
Accounting Standards Board (GASH) Statement No. 2.
N. CONSHIBLR@D CADI'i' r.
Contributed capital in the proprietary Eund types raprsaant contributioaa
from other fuada, developers, and Pederal, State and local grant
programs. Contribu tions are used primarily for capital outlay projects
and era recognized
as iacreaaea in equity in the
period they are earned '
or received.
O. H@SYHVB OY H N S H@TAINBD NIN c
Heaervas recorded is the governmental funds repreaeat portioaa of fund
balance rhich cannot ba appropriated for e:peaditurea or rhich have been ,
aegragated for specific future uaea.
@eaervea recorded in the eatarpriae funds are created by the eziateaca of ,
asaeta restricted Eor debt service, coaatruction, renerals and
replacements.
P. TOT r 0 tuyc ON OMBIN@D cTATP.t~NTc
Total columaa oa the Combined Piaeacial 6tatemsata are captioned
"Memorandum Only" to indicate that they are presented only to facilitate
financial analysis. Data in these columns do no[ present financial
poaitlon, reaulta of operatioaa, or changes in finmcial position in
conformity rith generally accepted accounting principles. Neither is
such data comparable to a coaaolidatioa. Intarfuad elimiaatioaa have not
been made in the aggregation of thin data.
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CITY OF ATLANTIC BEACH, PLORIDA
' NOTEB TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1987
' 2. CASH AND INVESTMENTS
Cash Depoaita:
' At year-end, [he carrying amount of the City's deposita was 5293,467 and the
bank balance wan 5889,661. Depoaita is benka and saviaga and loans are
collateralized as public funds through a State procedure provided for in
' Chapter 280, Florida Statutes. Financial inatitutiona qualifying as public
depositories place with the State Hoard of Administration eecuritiea which
have a market value equal to 50 percent of the average daily balances for
' each month of all public deposita is e:ceea of any applicable deposit
insurance. The Public Deposit Security Trust Pund has a procedure [o
allocate and recover losses is the event of a default or insolvency. Nhen
public deposits are made in accordance with Chapter 280, ao public depositor
shall be liable for nay loss thereof.
Iave stmeats:
' The City's investment practices are governed by Chapter 280, Florida
Statutes. AC September 30, 1987 the Ci[y'n inveatmente consisted of
certificates of deposita and iaveatmeats with state agencies. Market values
approzimated book values at September 30, 1987.
The certificates of deposita era considered to be category one credit rink
investments, which means they are insured or collateralised with securities
held Dy the City's agent is the City's name. The deposita sad investments
with state agencies are not included or classi Eied by credit risk since they
' are held by an independent agency. There were no violations of the legal or
contractual provisions for deposits and investmeata.
The total cash and investment balance of the City is comprised of the
' Following items:
Petty cash on hand S 400
' Savings and money market accounts 293.067
Total cash 293,467
' Certificates of deposit with local banks:
31-90 days maturity 318,223
91-180 days maturity 312,863
181-360 days maturity 2,192,122
' Total certificates of deposit 2,823,208
Invented cash with fiscal agent 399,435
' Investment with State Board of Administration 3,258,269
Total investmeata 6,480,911
Total cash and investments 6,774,378
' Less: restricted cash and iaves[meata 1,968,791
Total unrestricted cash sad investments f4,e0S, 6'+7
' - 23 -
vU:~ t (JG
CITY OP ATLANTIC HBACN, FLORIDA '
NOTES TO FINANCIAL STATE1d8NT5
SEPTE?IBER 30 1987
3. PROPERTY, PLANT AND EOUIP)ffiNT '
A summarp of chaagea is general fized aaaeta follows:
Balance, Balance,
October 1, September 30,
1986 Aaditione DelelSona 1987
Land f 143,702 5221,566 { _ E 365,268 '
Buildiags 329,071 381,744 - 710,815
Improvements other '
than Duildinga 441,318 - 441,318
Equipment 656.927 +17.323 19.861
- 754,389
Total E1. 571.018 '
~~ E19.861 E2.271.]9D
A summary of fized assets of the Enterprise Punde at September 30, 1997
follova:
Total
avatar $ewr $ani tattoo Buccaneer Di zt ri c! Enterprise
FJLO- Fund Fund wabr Funds $twr Funds Funds
Land S - S 65.SSJ S - S 26,681 f 117,799 f 210,03)
euf idin9s 393,718 505,685 - 27,004 53,356 979,763 '
Iagravenents other
than bui ldi nys 1,568,145 4,099,253 - 1,331,695 3,026,856 70,025,9x9
Islprovewents '
f row ioint
venture - 616.802 - - - 616,802
Machinery and
e4uipwant 10x,604 93,252 306,529 - - 50x,385 '
Less - accunulated
depreciation (664.102) (888.0x2) if 77.599) (68.770) (133 081) 1 1 )
Total E1.M .a6c E4"d92.511] 5128.930 51.316.610 t+ 0~ a10~ ,
Constructioa is progreea for the Eaterpriae Fuada is as '
follovs:
Committed '
Ezpeadad to Federal Required
Pro Sect September 30, Sewer and State Future
Authori a i 1987 Pund Pundina pins°c;na ,
Sever system
improvements E2. 248. 780 E1.091.780 ~~ 546.4c2 ~& '
t '
CITY OF ATLANTIC BEACH, PGORIDA
NOTBS TO FINANCIAL STATEMENTS
4. LCNG-TERM OBLIGATIONS
The following is a summary of the long-term obligations of the City foz the
year ended September 30, 1987:
General Enterprise
Lon e-T Obl' ti lands
Gemral Accrued
Revenue Obligation Capensated Revenue
B_~gd3_ Bands Absences ands Total
Obligations payable at
October 1, 1986 (252,754 5307,000 577,726 54,282,799 34,920,279
Ner Bonds Issued:
1985 Florida Municipal Loan
Council Pooled Loan
Program Revenue Bands 321,971 321,911
Oebt principal paid (22,864) (45,000) - (251,584) (319,448)
Net increase in compensated
absences _ 21.523 -
21,523
Obli gall ons payable at
$epteMer 30, 1987 f551.801 f2R2.000 299.249 se _0,1 is t~ 9 • z6c
Bonds payable at September 30, 1987 are corepriaed of the following
individual issues:
General obligation boada:
1958 Sewer System aerial bonds, payable in annual
instalments of 520,000 plus interest tbrough
1988, bearing intereat at 3.8\ S 20,000
1972 Sewer System serial boada, payable is annual
instalments of 522,000 to E40,000 plus interest
through 1995, bearing intereat at 5.75\ 242,000
Revenue boada:
1985 Buccaneer District Mater and Sewer serial bonds,
payable is equal annual instalments of priacipaI
and interest of approximately E347,500 through
2000, bearing intereat at 9\ 2,600,600
State Pollution Control Boada, Series '•Q", payable
in annual iaatalmeata of E50,000 to =190,000
plus interest through 2000, bearing intereat at 8\ 1,405,000
1985 Plorida Municipal Loaa Council Pooled Loaa
Program Revenue Ronda payable in annual
instalments of 569,284 to 539,000 plus intereat
through 1995, bearing interest at a variable
rate (approximating 6.5\ at September 30, 1987): 577,416
Total fia.ea5.o16
- 25 -
CITY OP ATLANTIC BEACH, YLOEIDA
NOTES TO PINANCIAL STATEl~NTS
The annual rsquiremente to amortize all debts outstanding at September 30,
1987, are as follorst
General Loag-Term Obligations
Year Ending Account G[oun rnt@~prise Pund~
September 30 principal Interest Total principal Interest Total
1988 8 94,492 S 49,495E 143,987 5 80,615 S 232,584 S 313,199
1989 94,284 43,701 137,985 173,500 338,296 511,796
1990 99,284 37,572 131,856 188,400 322,776 511,176
1991 99,284 31,444 130,728 209,600 305,901 515,501
1993 99,284 24,991 124,275 231,800 287,163 518,963
Thereafter 332.173 36.913 369.OBfi 3 .147.300 1 .384.880 4 ,532.180
Total 5813.801 5224.116 51.037.917 54.031.215 22.B71.fi00 56.902.815
General obligation boada of the Long-Tern Obligations Account Group represent
bonds issued by the City for construction of (1958 aeries) and later
improvements and ez[ensions to (1971 aerien) the City's serer ayatem. These
bonds rare issued as general obligations of the City and, therefore, era pat
obligations of the individual Enterprise (Serer) fund.
Duriaq 1985, the City obtained a State Bond Loan rhich is administered Dy the
State Board of Administration and secured by State Pollution Control Boada,
Series "0", to support fmdiag for improvement sad e:paneion of its serer
system. These bonds are payable from pledged revenues derived Erom the
operations of the sewer ayatem. Under eha terms of the agreement, the City
may later pledge additional legal and available funds to repay the loan, as it
deems appropriate.
During 1985, the City issued revenue bonds to acquire as additional voter and
serer ayatem. Theca boada are payable from the net revenues of the Buccaneer
District Hater and Serer Syatam and are not general obliga[ione of the City.
Duriaq 1986, the City elected to participate is the Plorida Municipal Loan
Council Pooled Loan Program (Sevenue Boada, Seziea 1985). Under thin program
the City is eligible to horror up to 51,070,510 to be used to finance capital
projects. Through September 30, 1987 the City has borrored 5577,416 of which
approzimately 5~ is included as as obligation of the Enterprise Pund rith the
remainder as an obligation of the Lonq-Term Obligations Account Group. The
amortization schedule above includes interest on these obligatioan at an
assumed rate of 6.5\, which approzima[ea the actual rata at September 30, 1987
(the actual rate is variable).
In November 1987, subsequent to the fiscal year end, the City of Atlantic
Beach borroxed as additional 5224,977 from the Plorida Municipal Loaa Program.
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CITY OF ATLANTIC BEACB, PLOHIDA
NOTSS TO YINANCIAL STATE!ffiNiS
I $EPTEMBEH 30. 1967
I Revenue bonds of the Snterpriae Funds contain various [arms and covenants
which require the City to maintain adequate user cafes and to account Eor
the deposit sad disbursement of revenues in accordance with established
priorities. As of September 30, 1987, the City was eubatantially in
I compliance with such covana~ta.
S. EMPLOYEE BENEFITS
I The City maintains Nrsa single employer Publie Employees Hetirement
Systems. Thera is one non-contributory defined benefit pension play
I (General 6mployeea' Hetirement Plaa) and two contributory defined benefit
pension plena (Police Offieera' end Pirefightars• Hetiremeat Plms). These
retirement plena are accounted for is Che City's Penaioa Trust Yund. Total
pension eapenae for all funds dozing the year ended September 30, 1987 vas
I 553,796. The City's peaaion contribution ie computed using accepted
actuarial methods sad, except for the effeeta of plan amendments, if say, is
not ezpected to increase materially is the future in relation to total
I payroll ezpease. Employees are fully vented after 10 years.
A. PENSION BENEPIT OBLIGATION
I The amount shown below as the "pension benefit obligation" is a standardised
disclosure measure of the present value o[ pension benefits, adjuatad for
the effects of projected salary inereeees, estimated [o be papabls in the
I future as a result of employee service to date. Ths measure is the
actuarial present value of credited projected benefits and is intended to
help users aseeas the aystem•s funding statue oa a going-concern basis,
anaesa progzena being made in accumulating sufficient asaete to pay DaneEits
I rhea due, and alloy for comparisons among public employes retirement
syatema. Tba measure is independent of the actuarial funding method used [o
determine contributions to the system.
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CITY OP ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
The peaeioa benefit obligation wee determined as part of as actuarial
valuation of the plan as of September 30, 1986. Significant actuarial
aaaumptiona used in determining the panaioa benefit obligation include (a) a
rate of return on the investment of preaeat and future aeaete o[ a pecceat
per year compounded amually, (b) projected salary increases of 6 percent
per year compounded annually, attributable to inflation, (c) additional
projected salary increaeea ranging from 0.0 to 3.0 percent per year,
depending on age, attributable to seniority/merit, and (d) the aaaumptioa
that benefits rill not increaaa after retirement. At September 30, 1986,
the asseta is e:cesa of the peaeioa benefit obligation were {179,330,
determined as follora:
General Police
Emploveea Officara Pitefimbtera
Pension Benefit Obligations
Retirees and beneficiaries currently
receiving benefits
Terminated employaea not yet
receiving beaefita
Current employees:
Accumulated employee coatributioaa
including allocated investment
income
6mployez financed - Vented
Employer financed - Noa-vented
Total Pension Benefit Obligation
Net assets available for beaefita,
at coat (market value rae same
as cost)
Assets in ezcesa of or (less) than
the Pension Benefit Obligation
5326,495 S 52,026 S 64,016
45,687 54,513 26,659
none none none
339,621 173,475 49,708
116,958 54,167 37.179
828,761 334,181 177,592
729.132 523.427 267.305
E(gq"62g) E1B9.29fi S a~.713
During the year ended September 30, 1986 the plan s:psrienced a net cbanga
of 5119,325 in the peaeioa benefit obligation. There were no plan
amendments or chaagea in actuarial aeaumptions.
B. CONTRIBCm'IONS REO IRED ONTRIB rrION (See StatiatiCal Section)
The City's funding policy provides Eor periodic employer contributions at
actuarially determined rates that, ezpreaaed as percentages of annual
covered payroll, are designed to accumulate sufficient asseta to pay
benefits when due. Tha normal cost and actuarial accrued liability are
determined using an entry age actuarial funding method. Unfunded
actuarial accrued liabi litiea are being amortized as a level percent of
payroll over a period of 25 years.
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CITY OF ATLANTIC HEACR, FLORIDA
NOTSS TO FINANCIAL STAT@R6NTS
SEPTEt~RR 30. 1987
'
boring tae year ended September 30, 1987 contributions totaling 1124,100
' (576,884 employer, (4,205 employee, and (43,011 state) rare made in
aceordmce rith contribution requirements determined by m actuarial
valuation of tae plm ae of September 30, 1985. Sigaificmt actuarial
' assmptiona used to compute contribution requirements rare the name as
those used to compute tae s[mdardised measure of tae pmaioa benefit
obligation.
6. DSPERRED COMPSNSATIOR PLAN
t
The City offers its employees a deferred compensation plm scented in
accordance ri th Inieraal Revenue Code Section 957. Tas p]m, available to
all City 6mployeea, permits them to defer a portion of their salary until
future yearn. The deferred compeaaation is not available to employees until
termination, retizemsn4 death, or untoraeeabls emergency.
All amounts of compeaaation deferred under the plm, ell property and rights
purehaaad r1 [h those emamte, and all ineame ettributaDla [o [hose amounts,
property, or rights are (until paid or mods available to the employee or
other beneficiary) aolelp the property and rights of the City (rithout Dsing
restricted to tae proviaioas of bensfi[a under the plm), aubjact mlp to
the claims of the City's general craditora. Participmta• rights under tae
plm ere equal to those of general creditors of tea City in m amount equal
to the Eair market value of the deferred accomt Eor each participant.
IC in the opinion of tae City legal comael
for loaaea under the plm but does nave the
required of m ordinary prudent investor.
unlikely that it rill ues the asaeta to
craditora in the future.
fast the Citp hoe no liability
duty of due care that could be
Taa City believes [hat it is
satisfy the claims of ge¢aral
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CITY OP AThANTIC HBACH, nOeIDA
NOTES TO FINANCIAL STATBMBNTS
SEPTEMBER 30. 1987
7. SBG!ffiNT INFORMATION PO8 ENTBRPRISB FUNDS
Tae City bee satabliaaed aeparete Bntsrprias Pllada to account for water,
newer sad sanitation aervicea. Segment inEOrmation for tea City's
enterprise Puada for We year ended September 30, 1987 is ea folloras
Total
Buccanee r Di stri et Sanitati an Enterprise
water fund Sewer Fund Mater Fund Sewr Lund Fund funds
Operating revenues f 326,168 S 835,978 f 232,120 S 549,551 S 413,179 52,357,296
Oevreciati on 70,218 139,976 38,475 73,510 31,190 353,379
Operating incase (loss) 36,588 111,307 96,351 275,854 98,384 618,484
Non-operating intone
(expense) 101,836 370,235 42,736 363,635 9,772 888,210
OperaHn9 transfers in
(out) (47,740) (132,591) 16.725 (74,295) (48,376) (286,277)
Net incase (loss) 90,684 348,951 155.812 565,191 59.780 1,220,121
Net property, plant and
equtpeent 1,402,365 4,492,507 1,316.610 3,060,430 028,930 10,405,341
Net worki n9 capital 293,781 927,487 63,108 147,471 125,755 1,557,605
Long-tern debt 22,015 1,350,000 853.707 1,746,893 3,972,615
total equf ty 1,799,359 5,999,965 711,840 2,148,503 254,685 10,914,352
Total assets 1,958,160 7,706.749 1,627,728 3,921,513 280,202 15,490,352
8. INSERPUND TRANSACTIONS EECONCILIATION
A suomary of interfund tranefera during the fiscal year ended September 30,
1987, is as follows:
Traaafers tos
Capital Dabt
General Ptoiacta Service Total
Tranafar from•
Eaterpriaa 5286,277 S - 5 - 5286,277
General - - 39,621 39,621
Special Revenue fi1.OB3 92,169 153.252
Total 547-~fi0 592.169 ~l E479-1 n0
Tae interEund receivable/payable at September 30, 1957, wan betraen tea
General Pund and the Miacellaneoua Graata apeci al revenue fund.
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CITY OP ATLANTIC HEACN, FLORIDA
' NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30. 1987
9. JOINT VENTURE
Tn 1985, pursuant to as interlocal agreement authorised by Florida Ststutes
Section 163.01, the City joined rich the City o[ Jacksonville Beach and the
City of Neptune Beach to conatzuct and operate effluent outfall linen and
disposal Eacilitiea, together rith all the lands, right-oE-rays, easements,
and other entitlements accessary for the construction and use [hereof.
' The construction of the outfall lines and disposal Eacilitiea vets Funded Dy
the municipalities to the folloriaq proportions:
Atlantic Beach 33.06\
Jacksonville Beach 55.78\
Neptune Beach 11"161
Total 100.00\
Each City has recorded its share of the project is its own financial
' statements. The City recorded its portion of the joint venture
(approzimately 5290,000) is the property accounts of the City's Sewer Pund.
The City also racorda approzimately 5325,000 of additional property
purchased rich grant proceeds from the Florida Department of Environmental
Regulation nines the grant for the outfall lines van awarded to the City of
Atlantic Beach. Therefore, the total value of the joint venture on the
City's books is approzimately 4615,000. The project ran completed in 1986
sad depreciation (using [he straight-line method over 25 years) began is
]987.
The City of Atlantic Beach provides all accounting and purchasing aervicea
for the join[ venture. Repair and maintenance of the outfall lines and
disposal of the Eacilitiea rill be shared by the participating
muaicipalitiee in the percentages noted above. No repair and maintenance
ezpenses re]a[ed to the joint venture raze incurred in 1987,
10. NEGATED PARTIES
The Superintendent of public Norka is a former owner of the Buccaneer Water
6 Sewer Plant. Aa~a former owner, he is nor the holder of a bond which wan
issued by the City in 1985 to purchase Hueeaneer Hater 6 Sexer. During 1987
he received 522,800 to principal and 523,643 is interest from the City.
11. SUBSEgUENT EVENTS
The pension fund began inventing in marketable equity securities 3n October
1987 just prior to the October stock market fall. By December 31, 1987,
' some of the October losses had been recovered and the net unrealised lose
(on the 51,625,000 originally invested with the money manager) wan
approzimately 547,000 (which is leas than 3\ of invested funds).
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CDl~INING AND INDIVIDUAL SSASSMENiS
AND SCNEDULSS
Combining financial statementa provide a more detailed view of [be "General
Purpose Financial Statements" presented is the preceding subsection.
Individual statementa and achedulea, although not aecesaary for fair
presentation is conformity with Generally Accepted Accounting principles,
are presented to provide greater detail and comparative financial
information for certain fund types.
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General Pund 1
0
The General Pund is the general operating fund of the Citp. It is used to '
account for all financial raaourcea azcept those required Co be accounted
fot is another fund.
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Citt OF ATLANTIC BGCX, iLORIDA
' GENEGL M1D
SCXEWIE OF IXPIXD[TURES - BUDGET AND ACTUAL
fOR THE FISGL YEAR FNOEO SEPTEMBER 30 1987 ( ith ti t t ' f ! - 0 79 I
Variance
Favorable 1986
Budaat petual (Unfavorable) petual
GENERAL GOVERNMENT:
Legislature:
Personal servicet S 22,454 S 21,187 S 1,267 S 20,378
Other servt<es aM charges 4.000 1.110 2.890 2.299
Total 1e91 stature 26.454 22.297 4.157 22.677
Executive:
Personal services 71,116 70.832 284 63,249
Other services and charges 5.490 5.139 351 6.848
Total executive 76.606 75.971 635 70.097
Financial:
Personal services 186,347 174,480 11,867 154,305
Other services and charges 45.179 31.756 13.123 34.637
Total financi ai 231.526 206.236 25.290 188.942
General servfcas:
Personal services 76,506 70,954 5.552 917
Other services and charges 419.617 379.829 39.788 234.917
Total general services 496.123 450.783
45.390
235.828
TOTAL GENERAL GOVERNMENT 830.709 755.287 75.422 517.54q
Public safety:
Personal sarvi ces 939,223 919,179 20,044 760,335
Other services and Charges 227.608 215.250 12.358 156.369
letal public safety 1.166.831 1.130.429 32.402 976.704
Roads and streets:
Personal sarvicas 287,515 276,351 11,764 243,501
Other services and charges 141.500 735.105 6.395 784.390
Total roads and streets 429.015 411.056 17.559 427.891
Intra9evarmental services:
Personal services 33,760 33,751 9 17,269
Other services and charges 925 920 _~r 2.552
Total tntra9ovenmmntal services 34.685 34.671 ~ 19.821
Parks and recreation:
Personal sarvi ces 20,477 20,456 79
Other services and charges 32.935 32.931 ~ 45.761
Totsl parks and recreation 53.412 53.389 ~~ 45.761
TOTAL EXPENDITURES t slq 6s S .'+89 2a2 212c a 0 51.927.721
See notes to finand al statements.
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Spacial Revenue Yunde are used to accomt for the proceada of spscific revenue
sources (other than special anaesaments or major capital projects) that are
legally restricted Co e:panditurea for specified purposes.
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CITY OF ATLANTIC BEACH, iLORIDA
SPECIAL REVENUE FUNDS -
COMBINING BAIANtE SHEET
SEPTEIieER 30. 1987 (ri th cam ti t ! 1 f a teN n0 198fi1
Local Option Federal Misnllaneous
Gas Tar Revenue Sharma -Grants Tntats
1242 12$Z 12$4 1492 394 >93Z >Y~
ASSETS
Cash and inras tarnis
Due froe other gaverments
Total assets
LIABILITIES AND Fl1N0 BALANfES
Li abi li lies:
Accounts Dayable
Due to other fulls
Total liabilities
Fund Balances - Unreserve0
Total liabilities and fund btlances
See notes !o financial stateearnts.
f195,739 (59,212 (2,988 f198,727 f59,212
26.65; 11 f25.614 32.564 25 614
5222.392 Z- 553.212 59.933 f2t 614 3231.241 393affi4
f 855 (5.114 f 5.414 f 855
- 3.485 325.414 3.485 25.614
-~55 8.899 25.61d 8.899 34,._44
3222,342 58.357 222.392 5B •357
3222.332 5~ 354aW fB.9$3 325.919 3231.7$1 384.924
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CITY Oi ATLANTIC BEACH, FLORIDA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF 0.EVENUE, E%PFNDITURES, AND CHANGES IN NND BALANCE
FOR THE FISCAL YE!R ENDED SEPTE~9ER 30. 1987 frith eamarative total s for Sao teM 30 1986)
Local Optl on federal Miscell aneous
Gas Taw gevenue Shari na Gra nts To tals
38Z 3@Z 3@6 3@Z 386 36Z 3@6
Revenues:
Ta+es (314,581 5314,581
Federal shared rwenues f 881 :48,612 881 (48,812
State shared revenues 520,908 525,614 20,908 25,610
Interest incaaN 1.845 2.627 1.845 2.627
Total revenues 13 4.516 2.72fi 51.239 20.908 25.614 338.195 76.853
E+pendi [ores:
General goverment 20.908 20.908
Parks and recreation 34,152 34,152
Capital outlay 1 4 13.470
Total expenditures 1 47 20.90E 34.152 20.908 47.622
Excess of revenues over (under)
expends to ras 314.561 2.726 37.769 (8.538) 317.287 29.231
Othor financing sources (uses):
Operati ny transbrs fn 8,538 8,538
Oparati ne transfers (out) (92.169) (61.08;) (10.288) (153.252 ) (10.288)
Total other financing sources (uses) (92.169) (61.08;) 110,288) 8.539 (153.252) (1.750)
Excess of revenues and other sources
over expenditures and other uses 222,392 (58,357) 27,481 164,035 27,481
Fund balances, October 1, 1988 58.357 30.876
fund balances, SepteMer 30, 1987 t S lSR lC7 ~ ~z 558.357
See notes to financial statenenl:.
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Eaterpriae Fuadn
Enterprise Puada are used to account for operations that are financed and
operated is a manner similar to private buaineaa anterpriaea, where the
intent is that the costa (ezpenaen, including depreciation) of providing
' goods or aervicea to the gemrel public oa a continuing baaia be financed or
recovered primarily through veer charges.
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CITY OF ATLANTIC BEACH, FLORIDA
ENTE0.PRISE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30. 1987 frith c t' t t l f 5 tesbe 30 19 1
Vatar fend
1~ 14@Q
ASSETS
Cash and investnnts f 337,327
Accounts receiwble 45,772
Allorance for doubtful accounts
Inventories 46.468
Total currant assets 430.567
Other assets 670
Restricted assets:
Cash and lnvestwnts 124,558
Invested cash ri th fiscal agents
Dua from other gove rnnen is
Construction in progress
P ropertY, Plant and e9uipnent -net 1.402.365
Total assets 1.95n 160
LIABILITIES ANO FlaiO E ITY
Current li obi li Li as (payable from
Current assets):
Accounts payable and accrued ii obi li ti es f 16,955
Current portion of revenue bonds paY+bla 3,600
Custaepr deposi is 116.231
Current lfabili ti es (payable from
restricted assets):
Accounts payable
Contracts payable
Revenue bonds payable
Acc rub interest Payable
Due to other funds
Revenue Bonds Dayable - long-tem portion 22 015
Total liabilities 158.801
fund Equf ty:
Lontri bated capital 85p~4/6
Retained earnings:
Reserved f9r renerals and roplacaments 124,5$8
Reserved for debt service
Reserved far construcLi on
Unreserved 824.354
Total retained earnings 948,0);
Total fund equity 7,7gg,;5g
Total liabillti es and fund equity 51.958.160
See notes to financial ztaLements.
f 252,515
38,520
44.131
670
73,601
Sewr FuM
~Z >~
f 923,646 f 362,782
62,034 53,50
985.680
9,364
702,759
310,923
113,738
1,091,780
4.492.507
7 JOfi.749
416.429
9,364
868.815
693,705
351,322
829,294
3.500.781
56"669.]40
f 12,691 f 58,193 f 52,931
2,219
95,746
103,814 101,114
111,339 45,093
55.000 50,000
28,d38 29,438
ems. xu ism.DDD 1.405.000
136.236 1.706 784 1.683.57fi
764,273 2,846,448 2,243.824
73,601 489,771 753,381
227,480 222,291
111,571 712,555
751.582 2.324.699 1.054.113
825.183 3.153.525 •70 40
1.589.456
tl ]c69
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euecaneer District
Sanitation Fvnd Mater Fund Sewer Lund Totals
>~ >~ 34b? 1~$¢ 348Z 3454 ]4.@Z 3484
(147,657 f 69,673 f 96.212 f 19,281 f 133,888 f 37,023 f 1,638.730 f 741,274
3.615 1,634 35,777 20,127 51.003 37,950 199,201 151,878
(6,700) (17,300) (18.000)
66.468 44.131
151.272 71.307 125.289 39.408 173.591 74.973 1.866.399 937.283
10,034 10,034
185,829 177,015 6M,672 486,049 1,657,818 1,605,510
310,923 693,705
113.736 351,322
38.320 166,517 1,130,100 995,811
128.930 137.741 1.316.610 1.157.611 3.064.930 _2.378.831 10.405.342 8.491.219
S28C.20Z szn9.B4e 51.627.728 (1.374.034 t'__ g2~ f3.194.37L sts.a94.3s2 513.084.884
f 25,577 f 14,143 f 9,782 f 9,001 f 26,117 f 13,017 f 136,SM f 101,783
3,600 2,219
52,119 23,641 168,650 119,387
103,814 101,114
111,339 45,093
31,353 64,147 55.000 145,500
41,366 84,634 28,438 155.438
853.707 887.812 1.746.893 1.816.688 3.972.615 4.135.080
17 14.143 915.888 993.173 1.773.010 1.978.486 4.580.000 4.805.fi 14
391,178 221,849 873.473 428,767 4,961,537 3.658,713
185,829 104,297 644,672 337 ,2fi8 1,444,830 1,268,547
227,484 222,291
111,577 712,555
_],$4.¢85 194.905 134.833 54.715 630.358 361.849 4.168.930 2.417.164
254.685 194.905 320.662 159.012 1.275.030 fi99.117 5.952.815 4.620.557
~,¢4 85 194.905 711.840 380.881 2.148.503 1.127.884 10.914 352 8.279.270
~j~,jpj 5209.048 51.627.729 51.374.034 <a g 7 cla 53.106.370 111.494.852 (13.086.884
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CITY OF ATLANTIC BFACN, FLORIDA
ENTERPRISE LANDS
COMBINING STATEMENT OF REVENUES, IXPENSES AND CNAN6E5 IN pETAINEO EARNINGS
fOR THE fISGL YEaR ENDED <EPTEMBER ng 1987 (ith tt ! c 1 f a•..zw... an +eect
VaLr land Seve r land
>~ ]~ iS.@1 ]~
Operating revenues:
Custaner charg4s (292,189 f284,B3D f 834,268 S 775,669
Other {ncame 33.679 39.571 1.710 1.083
Total operating avenues 326.168 X4.401 835.978 776.752
Operating eapanses:
Personal services 113,033 105,147 tb3,684 148,507
Contra<tuat services 20,996 24,853 182,606 39,894
Supplies 15.038 77,552 53,415 51,671
Repairs xnd maintenance 11,682 15,109 57,226 51.195
Heat, light and porer 28,793 30,611 101,038 101,323
Depreciation 70,228 56,987 139,978 57,120
Other aspanses 19.810 12.969 26.730 30.538
Total operating aspanses 289.580 323.228 724.671 480.248
Operating incosr (loss) 36.588 1.173 111.307 296.504
Non-operating incap (expense):
[onnectfon Charges 74,910 71,930 258,265 301,825
Sorer genarati on charge 89,565 43,130
Interest income 28,409 26,071 139,135 182,883
Contributions and danati ons 7,000 11,406
Interest ezDense (1.483) (160) (116.750) !120.450)
Total non-operating incaaw 1_Q1,$j¢ 1 1 370.235 418.794
Net intaM (loss) before operating Iran sfe rz 1]~,,$j4 106.011 481.542 715.298
Operating transfers in (out) (47.740) (63.000) (132.591) (134.388)
Net fncame (loss) 90,684 43,014 348,951 580,910
Add depreciaN on on ftaed assets
acquired by shared revenues estarnally
restri trod for capital acquisitions 33•Qa6 28.925 fit 23d 15.592
Increase fn retained earnings 123.730 71,939 417,185 596,502
Retained Earnings, October 1, 1988 825.183 753.244 2,742.340 2.145.838
Retained Earnings, Septeeber 38. 1987
See notes to finan<i at statements.
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S
euecanur Oistri e[
SaniGNOn Fund Yabr land Sawr Fund Totals
1482 955 952 985 1452 955 1492 995
f413.d79 f323,350 f195.596 f128,152 f 525,588 f 385.606 f2,261,400 f1,897,607
36.524 M 0§Q 23.983 19.500 95.896 104.723
413.479 ana asn 232.720 172.721 549.551 405.1Ofi 2.357.29fi 2.002.330
234,930 203,743 511,647 457,397
1,977 84,668 86,792 739,129 170,564 d29,376 322,103
18,787 25.877 255 97,240 155.355
23,566 14,993 809 897 2.009 4,142 95.292 86,336
2,863 191 43,075 5,580 175,765 137,705
31,190 33,388 38,475 30,295 73.510 59,571 353,379 237,361
4.W5 fi.346 8.956 1.862 15.974 3.819 76.113 55.534
315.095 284 347 135.769 120.292 273.697 243 676 1.738.812 1.451.791
98.384 39.003 96.351 52.429 275.854 161.430 618.484 550.539
107,610 182,549 483,391 747,107 924,176 1,303,411
89.585 43,130
9,772 5,860 15,029 3,636 43,746 27,195 236,091 245,645
18,406
(79.903) (82.725) (163.502) (169.275) (361.638) (372 610)
9.772 S.BfiO 47 Z39 1~,'~9Q 363.635 605.027 888.214 1.237.982
19a•ls6 J01 553 14.992 155.889 fi39.489 766.457 7.506.698 1.788.521
(48.376) 1`13,455) 16.725 24.000 (74.295) (81.000) (286.277) (307.388)
59,780 (8,137) 155,812 179,889 565,194 685,457 1,220,421 1,481,133
5.838 10.719 111.837 44.517
59,780 (8,137) 161,650 179.889 575,913 685,457 1,332,258 1,525,650
194.905 203.042 1 1 (20,877) 699.117 13.6fi0 4.620.557 3.094.907
[ ce 68c 1139.905 L715.552 3159.012 51.275.030 5_543.]11 35.952.815 59.fi20"557
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CITY OF ATL4MIC BGCH, iLOR[G
ENJERDRISE LANDS
COMBINING STATFIIFNT OF CHANGES IN FINANCIAL POSITION
i0R THE FISGL YFAR ENOEO SEPTFlIBER 30, 1987
ivlth ceanarative tot 1 f th dad z twb 30 1986)
Nabr FwM Satyr Fund
~I ]98Q 1~ ~~
Financial resources very provided by:
Operati ms:
Net inceeN (loss) f 90.684 f 43,O1d f 348,951 f 580,910
Oepnciati on 70.228 56.987 139.976 57.120
Vorking capf tai provided by operations 160,912 100,001 488,927 638,030
Increase fn coniri bated capital 119,219 123,617 664,850 1,605,952
Decrease in nstri cted assets 786,455 679,150
Ofsposi ti on of property, plant and eW ipewnt
Increase fn long-tem debt 27,7gg
Increase in current liabilities
payable frm restricted assets 73 g~ yg 662
Total seurws of corking capital 1 i 41 2.014.178 2.981.794
Financial resources vacs used for:
AcWisition of proDerLY. plant and a9uipnent 156,338 209,560 1,394,188 2.960,188
Increase in nttri cted asseb 50,957 63,125
Reduction of bonds payable 3,565 55.000
Oecraase in current liabilities
payable frm rettri trod assets 1.000 50 000
Total uses of wrking capital _71$.860 272.685 1.450.188 3.010.188
increase (decrease) in rorki n9 capital S 6~ S121.26p) f ua ggp s iza.3a)
Changes in Conponsnts of Norking Capital;
Increase (decrease) in current assets:
Cash and investueants f 84,812 f 1,182 f 560.864 f (23,230)
A«ounts re<oi vable 8,252 2,781 8,386 31,195
Allovan<e for doubtful accounts
Inventory 2,335 545
Other current assets 1333)
Increase (decrease) in current assets 95.399 4.508 569.250 7.632
(Increase) decrease in current li abili tips:
Accounts payable and accrual li abf ll ti es (4,263) (2,337) (5,260) (36,026)
Interest payable
Custawr d4posl is (20,484) (23,439)
Current portion revenue bond payabl• (1.381)
(Increase) decrease in currant liabi llti es (26.128) !25.776) (5.260) (36.0261
Increase (decrease) in vorki ng caDi tat
Sea notes to financial stateants.
_46_
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__ Bete,". of c i t
Sani tatien Fund VaGr Fund Swv Fund Tetals
1987 ~ ~Z )~Q >~ >~ 1~ >~
f 59,780 f (8,13)) (155,812 (179,889 f 565,194 f 685,457 (1,220,421 (1,481,133
~1 .]QQ 33.388 47 10.295 73.510 59.571 353.379 _237.361
90.970 25,251 194,287 210,180 638.704 745,028 1,573.800 1,718,496
175.167 221,819 455,425 628,767 1,414,661 2,380,185
786,455 679,150
1,451 1,451
27,799
57.743 118
374 73
946 234
779
. . .
90.970 26.702 ~3.¢$ 4,~{ 77 1.094.129 1.292.169 3.848.862 5.041.858
22,379 15,168 197,474 268,761 631,412 724,081 2,401,791 4,177,741
8,814 162,039 158,623 455,642 218,396 680,806
34,105 31,353 69,795 64,147 162,465 145,500
72.719 748.781 222
500
.
22.379 ~¢ 1 11 462.133 1
OO8
fi 11 1
243
873 3
005
150 5
004
017
f fib c91 S l1.c34 S u.341 a 7 c"i .
.
S 85.518 .
.
S 49.296 .
.
S 843.712 .
.
S 3]"911
f 77,985 f 19.825 f 78,930 f 15,%5 f %,868 f 18.789 f 897,457 f 30,531
1,980 (4,045) 15.649 12,184 13,053 5,018 47,320 47,133
(6,700) (11,300) (18,000)
2,335 545
(333)
79.%5 15.780 85.879 18.149 98.619 21.807 929.112 77.876
(11,374) (4,246) (760) 1,496 (13,101) 1,411 (34,758) (39,704)
12,139 25.078 37,217
(28,777) (14,139) (49,261) (37,578)
(1.]81)
1_L ~.17~)
3 68"591 ~.j?¢)
i l1.s34 12$.53.2)
3 56.3,2 ~4` @)
S z7.fi43 (13.101)
s es.sl9 26.489
3 48.296 (85.400)
f ea3.77z f40.Ofi5)
f 37.e11
-n-
~f~J:i i~...~
Piduciary funds are used to account for assets held by Che City in a truataa '
capacity or ae an agent for iadividuala, private organisation, other '
governments, and/or other fmda.
1
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r
CITY OF ATLANTIC eEACN, FLORIDA
COMBINING BALANCE SHEET
FIDUCIARY FIAT TYPES
ALL FIDUCIARY fWDS
SFPTEIBER 30. 1987 (vi th eoroarati va totals fer SemtsM n0 19861
Pension Trust EsoendabL Trua Amnev - I[MA Totals
3@Z 9flft 14@Z 14$5 19.@L 19.@2 >~
ASSETS
CasF. and invastawnts 51,694,787 (1,519,864 515.173 525.108 31,709,960 51,544,972
Other cash and
investments 584,626 84,626
Accounts receivable ~¢ 767 24 767
Total assets 51.694.787 S1.S19.fi64 515.19] yyy,B7i f8g,yjQ 51.794.610 S1 uc 7a9
LIABILITIES AND FWD BAIAUrEc
LIABTLITI ES:
Deferred
cosgensati on ~6 S 84.626
Total liabilities 584.626 i 84.526
NND BALANCES:
Reserved for Police
training a1W
invests gsti ens 315,197 (25,875 f 15,197 f 25,875
Reserved for
yeti renenL 51.694.787 51.579.861 1.694.787 1.519.861
Total liabilities
and fund balances 51.694 JB7 51.519.864 515.19] S15.B]5 ~ ft"7pg.9P1 51.545.]39
Sea notes to financial statements.
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STATISTICAL SECTION
' Statistical nchedulae differ from tiaanciel etatemeats bacauna
they usually cover more thaw one fiscal yser sad may praneat
aoaaccountiag data.
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CETY OF A7IAN71C BEACH
PENSION REVENUES 8Y $WRCE AND EXPENSES BY TYPE
PENSION REVENUES:
Contributions:
Mee6er
r ey
State - Police
State - ii refi9hters
Investment interest and dividends
Gain or {lass)
Correction
Total Revenues
PENSION EXPENDITURES:
Benefits paid
Adninist rata ve e+penses
Total E+penditures
1987
Aao n P r n 38li ~S 125_ 1Q@~ 7952 1451 1~ 7272'
f 4.205 2Y f - f - f - f - f - f - f - f -
76,884 33 79,518 81,338 74,688 63,939 91,086 101,123 69,539 74,237
32,614 14 25,246 21,217 18,631 15,123 12,102 10,537 10.735 9,275
10,397 5 9,477 8,204 16,856 5,246 4,670 4, 1B8 3,876 3,462
104,619 46 114,340 119,272 103,048 91,719 89,997 66,431 46,184 28,434
_ _ _ (31.526) - _ _ _ _ _
- -- - 3.786
S22B.7i9 ]Jlaz 322fl.,i21 2195 5115 2113a123 2»6.OP7 2197 ,BSS 21@1.214 2tv 12n 2115.408
f 53,796 IOtK f 50,792 (49,368 f 40,341 f 30,894 f 14,980 f 10,079 f 9,330 f 9.331
- _-_2..94 - i.60Z
(33.196 100 S w.79z 2.14.359 2.9Q.311 L1Q.949 2.11.420 L14.Y13 I~.,i3G 11L431
r Actuarial data for 1978 did not itemize revenues by source or a+penses by type.
-53 -
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CITY OF ATIANFIC BEACH
COMPUTED PENSION CONIRIBU710N COMPARATIVE $CHEOULE
Fiscal Contribution Rates
Year Valuation As Percents of Dollar Contribution
End{ny Oate Val u att on Pay roll Valuation Fer Fis eal Year
SeotwAer 30 $eoteMar 30 Ge^. p°l +=• EUj pay rnl7 ~py~ ~_
1979 1977 15.13% 17. 31% 16.991 f 545,956 f 86,763 f 86.974
1980 1978• 13.32 15 .02 15.14 595,610 82,838 84,150
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. 37 13.34 696,719 83,765 84,308
1981 1982 9.36 12. 38 13.23 781,763 91,151 110,175
1985 1983 9.31 11. 61 11.85 892,194 100,690 110,759
1986 1984 9.53 14. 39 15.06 930,007 119,857 714,181
1987 1985' 9.17 9. 15 7.71 1,138.958 111,550 124,100
1988 1986 9.21 8. 36 7.81 1,277,813 122,759
' AfUr changes in benefit prwisi ons and/or actuarial eaperimq estierUS.
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1 CITP OP ATLANTIC BBACH
ANALYSIS OP PRNSION FUNDING PROGRESS
LAST TSN FISCAL YEARS (in Lh nda)
' (1) (2) (3) (4) (5) (a)
Piacal Pension Unfunded Unfunded PSO
Year Net Assets Benefit Percent (Funded) Annual as a Peroentsge
Endiaq Available Obligation Funded PBO Covered of Covered Payroll
September 30 for Benefits fPRG) 11)/(2) f2 )_(1) Payroll (4)x(5)
' 1977
1978• E 207
297 S 463
493 44.7\
60.2 S 256
196 = 546
596 46.9
1979
400
598
66.9
198
718 32.9
27.6
1980+ 525 768 68.4 243 692 35.1
~' 1981+ 697 848 82.2 151 697 21,7
1982 878 914 96.1 36 782 q,a
1983 1,023 1,012 101.1 (11) 892 0.0
1984 1,196 / i / 930 /
'
1985+
1,392
1,221
109.9
(121)
1,139 -
1986 1,520 1,341 113.3 (179) 1,278 _
' + After changes in benefi t proviaiona and/or actuarial ezparience eatimatea.
/ Not avail able from ECS, Inc. actua rial valuation report.
1
1
Analyaia of the dollar amounts of net aaaete available Eor beneEita,
pension, benefit obligation, and unfunded pension benefit obligation in
isolation can be misleading. S:preaaing the net aaaete available for
benefits as a percentage of the pension benefit obligation provides one
indication of the ayatem'a funded status on a going-concern basis. Analyaia
of Chia percentage over Cime iadicatea whaUer the sya [em is becoming
financially atrongar or weaker. Generally, the greater Chia percentage, the
atrongar the system. The unfunded penaion benefit obligation and annual
covered payroll are both affected by inflation. ¢:pressing the unfunded
penaion benefit obligation as a percentage of annual covered payroll
approzimately adjusts for the effects of inflation sad aids analysis of the
progress being made in accumulating sufficient aaaete to pay beaefita when
due. Generally, the amallar [his percentage, the stronger the system.
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~ Deloitte
Haskins+Sel~
1-- - - _ ___ _ _-
Certihed Public Pcwuntants
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CITY OF ATLAR'[IC BBACH, FLORIDA
Single Audi[ Report
for the Fiscal Year ended
September 30, 1987
CITY OP ATLANTIC BEACH
SINGLE AUDIT REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1987
TABLE OF CONTENTS
pace
Auditors' Opiaioa
General Purpose Pinancial ems 3
Combined Balance Sheet - All Pund Types and
Account Groups d
Combined Statement of Revenuea, Espeaditurea and
Changes in Fund Balances - A31 Governmental Pund
Types and Ezpendable Trust Punda 10
Comhined Statement of Revenues, ¢zpenditurea and
Changan in Pund Balances - Budget and Actual
(GAAP Hasis) - All Government Puad Types 12
Combined Statement of Revenuea, Ezpensea and Chaagea
in Retained Earniaga/Puad Balance - All
Proprietary Pund Types and Pension Trust Puad lq
Combined Statement of Changes in Piaaactal Poaitioa -
All Proprietary Pund Types and Pension Ttuat Pund 15
Notes to Pinancial Statements 17
Re t P de 1 d o t
Reports on Supplementary Information of Federal and
State Pinancial Asaiatance 35
Schedule of Federal and State Pinancial Asaiatance 3g
Note to Schedule of Federal and State Pinancial Asaiatance 41
Compliance Report Based oa an Ezamination of General
Purpoae Pinancial Statements Performed in Accordance
With the Standards for Audit Issued by the General
Accounting Office 43
Report on Compliance with Laws and Regulatioaa Related to
Major sad Nonmajor Federal Pinancial Aaaistance Programs 45
Report on Interual Accounting Controls Based on a Study
and Evaluation Made as a Part of as E:amination of
the General Purpose Pinancial Statemea[a 49
Report on Internal Controls (Accounting Bad Administrative) -
Based on a Study sad Evaluation Made as a Par[ of an
E:aminatioa of the General Purpoae Pinancial Statements
and Additional Testa Required by the Slagle Audit Act 53
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Deloitte
Haskins+Sells
Certified Public Accountants
Suite 1240
200 West Forsyth Street
Jacksonville. Florida 32202-4371
X9041354-8333
ITT Telex: 4995642
Honorable Mayor, City Coamiaaioa
and City Mmagar
City of Atlmtic Beach, Florida
We have ezamined th general purpose finmcial atatamsnta of Che City of
Atlmtic Beach, Florida, as of and for the year ended September 30, 1987,
as tinted is the foregoing table of coataata. Our ezaminatloa ran made is
accordmce rift generally accepted auditing etmdarda and, accordingly,
included each testa of tae accounting reeorda and each other auditing
procedures ae re considered aeceaaary is the eircmetmcea.
In our opinion, tae general purpose finmcial atatemente referred to above
present fairly the finmcial poaitioa of the City of Atlmtic Beaca,
Florida, at September 30, 1987, and the results o[ its operatioaa and the
ehmgee is finmcial position of its proprietary fmd types and panaioa
truer fmd for the yaer then ended, is conformity with generally eccapted
accomting principles applied oa a basis eoaaiateat with tact of the
preceding year.
~lj~Q.~ ~(Vj~ 9 -17JCY7
December 31, 1987
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GEN ~ si. P mPOSE FIN N I i TA NT
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CITY OF ATLANTIC BFACN, FLORIDA
COXB[NED BALANCE SHEET
ALL (i1N0 TYPES ANO ACCOUNT GROUPS
ASSETS
[ash and investewnts
Other cash and investnentz
Accounts rasaivabl•
Allowance for doubtful accounts
Inventories
Oue from other govarmpnts
Due frM other funds
Devetttt
Prepaid expenses
Other assets
Restr;ctad assets:
[ash and investMnts
Invested cash Nth fitcal agent
Oue fran other 9overnants
[onttrucRSOn in progress
Property, plant and
e9ui pennt - net
Aewunt avaf fable in the
debt service fund for
paynvnt of long-tern debt
Mount ka he provided for
payepnt of long-tarn bonds
Mount tm be Drovidad for
paysuent of luny-tarn
portion of canpensated
absences
TOTAL ASSETS
See notes to financial statements.
Notes
2
8
2
2
3
3
GoverMental Fund Tvoes
SpaN al Oeht CaDi tat
n r v n Service Prn facts
(1,130,689 5198,727 523,548 =103,983
263.619
27,895
32,564
3,485
s,ogD
86.664 380
(coot; nuad)
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Proprietary Fiduciary
Fund Tvo¢s Fund ivoas peeount Gr¢u¢s
Expendable General Gtn4ral Totals
and Pension Long-T¢rn Fi x¢d (Menorandu n Onlvl
Enterori sa Trust ObH tati¢ns Assets ]~7 7,~
(1,638,730 (1,704,960 (4,805,637 f3,775,8p
64,626 84,626
199,201 24 462,844 346,082
t le,aa91 ~ la,oool
~•~ 74,363 63,217
32,564 25,614
3,485 25.614
5,000 5,000
87,044 61,760
10,034 10,034 10.034
1,657,818 1,657,818 1,605,510
310,923 310,923 693,705
773,736 113,736 351,322
1,130,100 1,130,100 995,671
10,405,342 2,271,790 12,677,132 10,062,236
23.860 23,860 23,874
789.941 789.941 535.880
tls 4~ o....~}a..
Si.]^.610 99.249
fs]~ 12.21 .790 99.249
<22.asn,as6 7].726
t18.659.P2o
_7_
CITY OF ATLANTIC BFACN, FLORIDA
COMBINED BALANCE SNEET
ALL FUND 7YPE5 AND ACCOUNT GRWP$ (Continued)
Govervrmntal Fund Tv
Special Oebt Capital
Nmtes Ltet[21 R°venue Serviea Der 1652
LIABILITIES AND FUND EWITY
LIABILITIES:
Accounts DaYabl• and
accrued liabilities f %.992 f 5,414 f 67 f 95,5%
Due to other funds 3,485
Current Dortion of revenue
bonds D+Yable 4
Current li abi 11 ti es (payable
from rastritted assets):
Accounts payable
Contracts payable
Revenue bonds DaYabl• 4
Accrued interest payable
Revenue bondc payable -
long-Gra portion 4
Oeposi is 5,000
Defirrad caepmsatfon 6
General obligation boMS 4
Revenue boMS Datable
Accrued ceeDensatld absences,
long-ten 4
Total li abi llti oz
101.992
8.899 ~Z _
95.596
FiMD EQUITY:
[ontri butW caDittl
Investment in general fixed assets
Retained earnings:
Reserved for ranwalz
and replacements
Reserved far debt service
Reserved for conztructfon
Unreserved retained grni ngs
Fund bal antes:
Reserved for payment of
todg-tare debt 23,861
Reserved for prepaid eapenus 86,664
Reserved for invantori es 27,895
Rese rvW for pplice training
and investigations
Reserved for yeti repent
Other reserves 82,658
Unreserved fund balances 1.218.143 'L22.392 8.387
Total fund e9ui tY 1.415.360 222.392 23.861 8.387
TOTAL LIABILITIES AND NND EQUITY 31"517"352 f231"2~ ~fl 5103"98;
See notes to financial stataeents.
0~~>034 -B
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Proprietary Fiduciary
land Tvoas Fund Tvoes Aeceunt Gro cos
EsDendabL General General Totals
and Pension Lonp-Ten Fiaad (Menorandun 0 1 1
Enterprise Trus! Obii aattens Assets i~z
f 136.564 f 331,613 S 242,194
3,485 25,514
3,800 3,800 2,219
103,814 103,814 101,116
111,339 171,339 45,093
55,000 55,000 145,500
28,438 28,438 155,438
3,972,815 3,972,815 4,135,080
168,850 173,850 124,387
f 84,626 81,626
(262,000 262,000 307,000
551,801 551,801 252,756
4.580.000
84 626 99.249 99.249
~, 1(~ 5.784 230 ]7.726
5.614.119
6,%7,537 q,%1,537 3,658,713
(2,27{,790 2,271,790 1,571,017
1,444,830 1,440,830 1,268,547
227,484 227,480 222,291
111,571 111,571 711.055
4,168,930 d,168,930 2,417.664
23,861 23,874
86,664 61,760
27,895 19,086
15,197 15.197 25,875
1,694,787 1,694,787 1,519.864
82,658
1.448.922 1.544,364
10.914.352 1.709.984 2.271.790 16.566.126 /3.O45.i1Q
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CITY OF ATLANTIC BFACH, FLORIDA
COMBINED STATFMFM OF REVENUES, E1(PENDITURES AND CHANGES IN FLND BALANCES
ALL CAVERNMENTAL FlIIA TYPES AND E%PENOABLE TRUST LANDS
fQR THE YFAR FISGL ENDED SEPTEMBER 30. 1987
Govermental land Twes
Spacial Debt Capital
Notes General Rov°nua Serviee Proieels
Revenues:
Tayes f 654,390 f31/,561 (61,550
Licenses and pesmi is 509,819
federal shared revenues 887
State shared revenues 772,100 20.908
Other intergovermental revenues 13,604
Charges for services 3.139
Ffnes and forfai lures 96,404
Court cost
Confiscated property
Interest intone 88,241 1,845 1,577
Miscellaneous revenue 26.712
total revenues 2.164.409 338.195 63.127
Evpendi Cures:
Current:
General goverment 755,287 20,908
Public safety 1,134,429
Roads and st sets 411,456
Intergoverrenental services 34,671
Parks aM recreation 53,389
Debt service:
Principal ntirenen! 67,864
Interest and fiscal charges 34,897
Capital outlay (633.792
Total espendi lures 2.389.232 20.908 7 1 633.792
Evicess of revenues over (under)
eapendituret (224.823) 317.287 (39.634) (633.792)
Other financing sources (uses):
Bond proceeds 315,601
Operating transrars in 8 307,360 39.621 92,169
Operating transfers (out) 8 (39.621) (153.252)
Total other financtng sources (uses) 307.739 (15;.252) 39.621 407.770
Es<est of revenues aiM other sources
over (under) expenditures and
other uses 82,916 164,035 (13) (226.022)
Fund balances, October 1, 1986
Fund balances. September 30, 1987
See notes to financial statments
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Fiduciary
Fund Totals
Expendable 7Meswrandum Onlvl
INSt tsgi 1pg¢
(1.030,501 f 609.773
509,879 486,790
881 48,612
793,008 758,653
13,804 15,427
3,139 3,137
96,404 90,253
f 407 407 4,zsz
1,127 1,127 1,763
1,098 92,761 98,349
_ 26.772 17.229
2.632 2.589.363 2.132.238
776,195 517,541
13,370 7,147,739 925,823
411,456 427,891
34.671 19,821
53,389 79,913
67,864 42,000
34,897 21,870
633.792 169.226
13.310 3.160.003 2.204 088
1 7 ) (591.640) (71.850)
315,601 247,798
479,150 328,091
(192.873) (20.703)
fi01 878 555 186
(10,678) 10,238 483,336
25.875
f 15.197 1.671 959
61.685.197 7.191.623
31.5]4.959
_77 _
CITY OF ATLANTIC BEACN, FLORIDA
COMBINED STATEMENT OF REVENUES, IXPENDITURES AND CHANGES IN i1M0 BALANCES
BUDGET (GAAP GASIS) ANO ACTUAL
ALL GOVERNMENTAL FUND TYPES
FOR THE FISCAL YEAR ENDED SEPTE MBER 30. 198 7
Gemral Fund Soe d tl Revenue lands
Variansv Varf once
Bud
t
l {
t
A iavorabl•
U
f
bl
3
d
B
t Favarabl•
t
l (U
f
bl
)
A
Revenues: oe c
ua n
avora
e u
ge c
ua
n
avora
e
Taxes S 558,800 S 654,390 S 95,590 :288,000 5314,561 526,561
Licenses and pe~eits 445,300 509,879 64,519
Federal shared revenues 881 881
State shared revenues 795,417 772,100 (23,317) 21,424 20,908 (516)
Other inter9overmental revenue 13,000 13,606 604
Charges for services 17,200 3,139 (14,%1)
Fines and ferfei lures 60,000 %,404 36,404
Special assessments
Interest income 60,000 88,241 28,2/1 1,865 1,845
Miscellaneous revenue 17.083 26.712 9.629 _
Total revenues 1.966.800 2.161.409 1 7 312.150 338.195 26.065
Expenditures:
Current:
General goverment 830,709 755,287
Public safety 1,168,831 1,131,429
Roads and streets 429,015 411,658
Intra9ovarmental services 36,885 34,871
Parks and recreation 53,412 53,389
Debt service:
Principal rats raewnt
Interest and fiscal charges
Capital outlay
Total expenditures 2.510.652 2.389.232
Excess of revenues over
(under) expends lures _(~Q.852) (221.823)
Other financing sources (uses):
Bond proceeds
Operating transfers in 317,380 317,360
Operating transfers (out) (113.510) (39.821)
Total other financing
sources (uses) 233.850 307.739
Excess of revenues and other
sources over (under)
expend( CU res and other uses (314,002) 82,918
Fund balances, October 1, 1986 1.332.444 1.332.444
Fund balances. SapteMer 30,
7987 S1"°le"aaz 51"415.360
See notes to financial statements
75,422 21,424 20,908 516
32,402
17,559
14
23
125.420 21.424 20.908 576
73.889 (349.083) (153.2521 195.831
73.889 (309.083) (153.252) 195.831
3%,918 (58,357) 164.035 222,392
58.357 58.357
1
1
1
1
e
1
Total[
Oebt Serviee Fund [aaital Protects i~ d (8emrandun Onl )
Variance Wriancs Variance
Farorabl• Favorable Favorable
9udeet 8cwa1 SOnfavorablel Budget Actual lUnfavorable) Budget Aelu+l (Onfavorable)
(63,323 f 61,550 f (1,773) (910,123 =1,030,501 f120,378
445.300 509,819 64,519
881 881
816,841 793,008 (23,833)
13.000 13,604 604
17.200 3,139 (14,061)
60.000 %.404 36.404
f 150,000 =(150,000) 150,000 (150,000)
1,500 1,577 77 63,345 91,663 28,318
17.083 26.712 9.629
~4 8Z3 ~ (1.6%) 150.000 (150.000) 2.493.773 2.565.731 71.958
852,133 .778,195 75,938
1,188,831 1,134,429 32,402
429.015 411,458 17,559
34,685 34,671 14
53,412 53,389 23
105,375 67,864 37,511 105.375 67,864 37,511
53,190 34,897 18,293 53,190
1
270
100 633
792 63fi
30B 34,897 18,293
.
.
.
.
1.270.100
158.565 1 7 1 55 804 1.270.100 633.792 636.308 3.964 741 633.792
3.746.693 636.308
818.048
(93.742) _144.$34) 54.108 (1.720.700) (633.792) 486.308 (}.470.968) I580.g~) 890.OOb
130,748 315.601 (115,145) 430.746 315.601 (115,145)
93,742 39,821 (54,121) 288,000 92,189 (195,831) 729,102 479,150 (249,952)
(462.593) (192.873) 269.720
93.742 39.621 (54.121) 718.746 407 770 (310.976) 697.255 b01.878 (95 377)
(13) (13) (401,354) (226,022) 175,332 (773,713) 20,916 794,629
23.874 23.874 234.409 234.gQ4 1.699.084 1.649.084
~~ S 23"8 f (13) f(166.9451 f p.3B7 S 175.332 f B]G 3]I 31.670.OOn l 7
- 13 -
OUJO39
CITY Oi ATLANTIC BFACM, FLORIDA
COMBINED STATEMENT OF REVENUES, IXPENSES AND CINNGES IN RETAINED EARNINGS/f U/0 BAWICE
ALL PROPRIETARY T11N0 TYPES AND PENSION TRUST fUNO
FyR THE FISCAL YEAR ENDED SEPTEMBER 30 1%7
Proprietary Fiduciary
FwMS fund
Totals
PmHon (Mexwrandun Onlvl
yR3la En brmris• Trvst ~ 1~
ODeraliny revenues:
Customer charges
F.ployer~s contributions
Employee's contributions
State contri buts one
Earnings on inves tnents
Other intone
Total opa tali ng revenues
Operating expenses:
Personal services
Contractual services
supplies
Repairs and mintenance
Heat, light and Dover
Depreciation
Other ezpmu[
Reti renlnt benefits
Total oDerati n9 explnscs
Operating Sncone
Non-ope rats ng incana (expenses):
Connection charges
Sewer genarati on charge
Interest intone
Oonati ons
Interest expense
Total non-operating intone
Net incca before operating transfers
Operating transfers (out)
Net fncane
Add dep reci aLi on on fixed assets ac9ui red
by shared nvmws erternally nstrictea
for caDi cal ac9ufsf lions
Increase in retaSned earnings/fund balance
Retained earnings/fund balance,
October 1, 1986
Retained earnings/fund balance,
September 30, 1987
See nobs to financf al sUtemnts.
52,261,400 f 2,261,400 (1,897,607
5 S 76.884 76,881 79,518
5 4,205 d,205
5 43,011 43,011 34,663
104,619 104,619 111,340
95.8% 95.8% lOd.72n
- 2.357.2% 228.719 2.585.O1s o- 230.8
511,647 511,647 d57,397
429,376 429,376 322,103
97.240 97.240 155,355
95.292 95,292 86.336
175.765 175,765 137,705
353,379 353,379 237,361
76,113 76,173 55.534
5 53.7% 53.7% 50.792
1.738.812
618
484 53.7% 1.792.608 1.502.583
.
924,176 174.923 793.407
924,176 728.268
1,303,411
89,585 89,585 43,130
236,091 236,091 245.645
18,406
(361.638) (361.638) (372.610)
888.21d 888 214 1.237.982
1.506.698 174.923 1.681.621 1.966.250
(286.277) (286.277) (307.388)
1,220,421 174,923 1,395,341 1,658,862
111.837 111.837 44.517
1,332,258 174,923 1,507,181 1,703,379
4.620.557 1.519.860 6.140.421 4.437.042
f5 9S B1R 51.69d.]N7 SZa49Z.SOZ S4a~9(L]21
r
1
OfjS~J ,(i 1+
CITY OF ATUNTIC BFACN, iLORIDA
' COMBINED STAT EVENT OF CHANGES IN RN4NC[Al POSITION
All PROPR{ETARY FUND TYPE$ AMD PENSION TRN$T NNO
TM F Y R PT R 1
'
ProDrtetary Fiducf ary
lands Fund
rotalt
Pension (Meawrand O t )
Enterori sa 1'y $t JgB7 1986
1
a
Financial resources wra Orovi dad by:
Operations:
Net fncoM
Item not re4ui ri ng wrking capital durtng
the perlpd -depreciation
Yorking capf tal prori ded by operations
{ncreasa in contributed capital
Oecreass fn restricted assets
Disposal of property, plant and equipannt
Increase in long-tern debt
Increase in current li abili ttes
payable fran rostric bd assets
TaGI sources of wrking capf Cal
Financial resaurus wre used for:
Acpui si Lion of PropartY, plant and e9uipwnt
tncreasa 1n restricted ast¢tt
Reduction of bonds payable
Oet rease in current tiabilities payable
from restricted assets
Total uses of wrki n9 capi lei
Nat increase Sn wrking capital
Changes in Caaponents of Morki nq Capital:
Increase (dacreate) in current assets:
Cash and inveslnentt
4<counts receivable
411orance for doubtful accounts
Inventori as
Other current assets
Increase {n current assets
(Increase) decrease in current li abili ties:
Accounts payable and accrved iiabili ti es
Interest payable
Custoner deDOSits
Current portf on revenue bond payable
(Increase) in current liabilities
Increase in wrking capf Cal
Sev notes to financial sta taavnts.
51,220.421 (174,923
353.379
1,573.800 174,923
1,414,661
786,455
(1,395,344 f1,658,862
353.379 2a7.a61
a
~l
2,401,791
218,394
162,465
222.500
3.005.150
1~93.Z12 ~~
{ 897.457 5174,923
47,320
(18,000)
2,335
929.112 174.923
(34,758)
(49,261)
(1.381)
(85.400)
1~93.Z12 5174.923
1,748,723 1,8%,223
1,414,681 2,380,185
786,455 679,150
1,451
27,799
4.023.785 5.219.587
2,401,791 4,177,741
218,394 680,806
162,465 145,500
222.500
3.005.150 5.004.047
t7 019 6ac 1...215.596
(1,072,380 f 208,260
47,320 47,133
(18,000)
1,335 545
(333)
1.104.035 255.60$
(34,758) (39,704)
37,217
(49.261)
(1.381) (l7 Sj~)
(85.100) (40.(164)
11.615.535 1 15 5I(1
- 15 -
Tbis page intantionallp left blink. ,
1
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1
CITY OP ATLANTIC HEACN, FLORIDA
NOTES TO PINANCIAL STATEMENTS
1. SDMMAEY OP SIGNIPICAHT ACCOUNTING POLICIES
The City of Atlantic Beach, Plorida (the "City") in incorporated and
operates under a form of government which comprises an elected City
Commiaaioa (four Commisnionera and a Mayor-commieaioner) and provides, under
the admiaiatration of as appointed City Manager, the folloviag aerviceas
public safety ipolice and Eire), public rorta (atraeta and infrastructure ),
recreation, aanitatioa, planning, coning, valor and serer services and
general administrative services.
The folloviag is a summery of the more significant pallcian used is the
preparation of these financial atatemeata.
A. fl A O nlTrwn
The accounts of the City are orgeniaed oa the baaie of funds or account
groupa, each of rhich is considered a separate accountipg entity. The
operations of each fund are accounted for using a separate net of
self-balancing accounts rhich comprise its aaaets, liabilities, fund
equities, revenue and ezpeadituree or e:peaaea. The various Eunda are
grouped by type in the financial atatemeata. The tolloriag fund types
and account groupa are used by the Cityt
Gore[ t 1 P d
Geaerai Puad - The General Yund is the general operating fund of the
City. It in used to account for all financial reaourcea a:ceps those
required to be accounted for in another fund.
Spaci 1 He a P nd - The Speeial Eeveaue Punda are used to account
for the proceeds of specific revenue eouzcea (other than major capital
projects) that are legally restricted to eapenditurea for specified
purposes.
pebt Service Puad - The Debt Service Pund is used to account for the
accumulation of reaourcea for, and the payment of, long-term debt
principal, interest and related coats other than bonds payable from
the operations of the ea[erpriae funds.
Capital pros a P•ad - Capital Projects Punda are used to account for
financial reaourcea to be used for the acquiaitioa or construction of
major capital facilities (other than those financed by proprietary and
special revenue funds).
- 17 -
~J ii "~J
CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30. 1987
¢aterpriae Fonda - Saterprisa punda are used to account for eater,
newer and sanitation operations rhic4 ere financed and operated in a
mamer similar to privets Dueineas eaterprisea. The coats of
providing goods or aervieea to the geaerel public era financed or
recovered primarily through user charges.
F'd c' P d
Trust sad A~+ P. d - Trust Yunde are used to account for assets
Geld as a true tee or agent Dy the City for others. The Peaeion Trust
Pond ie accounted for in eaaeatially the same meaner as proprietary
fuada. The Ezpeadeble Trust Pund in accounted for in eaaentially the
same manner as governmental funds. Agency funds era custodial in
nature (aasats equal liabilities) and do not involve measurement o[
rasulta of operatioaa.
General Lona-Term Obli a i A - Thia account group is
used to account for the outstanding principal balances of long-term
debt and other long-term liabilities other than those payable Ezom the
operations of the enterprise funds.
General Pized A A ono - Thin account group is used to
account for all fi:ad aseeta of the City other than those accounted
for in [ha 6nterpriae Puads.
B. BA I~ OF A 0 nrrIN-
The accounting and reporting treetmeat applied to a fund is determined by
its measurement focus. All Governmental Punda and ezpendable Trust Yunda
are accounted for on a apeadinq or "financial floe" measurement focus.
This means that only current aaeeta sad current liabilities are generally
included oa [hair balance eheeta. Their reported food balance (net
current assets) is considered a measure of "available spendable
resources." Governmental fund operating atatemeats present iacreeaea
(revenues and other financial sources) sad decreases (ezpeaditurea and
other financing uses) in net current aaeeta. Accordingly, they are said
to present a aummazy of sources and uses of "available spendable
resources" during a period.
The Governmental pond Types and the Ezpendable Trust Yund use the
modified accrual baaia of accounting. Under the modified accrual baaia,
revenues are recognized in the accounting period is which Ney become
available and measurable. ezpenditurea, other than interest on general
long-term debt which is recorded whoa due, are recognized in the
accounting period rhea incurred.
1)~):J'~''~ t
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0
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1
CITY OP ATLANTIC BEACH, PLORIDA
NOTES TO FINANCIAL STATEMENTS
BEPTEMBER 30. 1987
All Proprietary Yunde end the Peaaioa Trust Fund are accounted for on a
coat of aervicea or "capital maintenance" measurement focus. Thin mesas
that all assets and ell liabilities (whether current or non-currant)
' associated with their activity are included on their balance sheets.
Their reported food equity (net total aeaeta) is segregated into
contributed capital sad retained earnings compoaenta. Proprietary fund
type operating statements present increases (revenues) sad decreases
(e:penaea) in net total aasete.
The Proprietary Fund Types and Peaaion Trust Puad use the accrual basin
' of accounting. Bevenue ie recogaiaed when earned and ezpeaeea are
recogaiaed when incurred. Water, sever and aaaitatioa aervicea are
billed to customers in advance on a quarterly cycle. A receivable is
recorded at year sad for unpaid (delinquent) billiaga lase an allorance
for those considered uacollectible.
C. wyyyy~r
' General governmental revenue and ezpendituree accounted Eor is budgetary
fuada are controlled by a budgetary accounting ayatem is accordance with
various legal raquiremanta which govern the Citp'a operations. The City
currently does not use an encumbrance accounting ayatem.
eudgeta have been adopted for all Governnental Puada (General, Special
' Revenue, Debt Service and Capital Projects Puada). The City Manager is
authorized to traaafer budgeted amounts within departmeata within nay
fund, however, any reviaioaa that increase the total ezpeaditurea of any
department or fund moat ba approved by Che City Commieaion. All
necessary supplemental appropriatioaa wars adopted by the City Commission
ae part of a quarterly budget revier process and are included in the
reported budgetary data. The budget presented on the Combined Statement
' of Revenues, Ezpenditurea and Changes is Puad Balance - Actual and Budget
- is prepared on a GAAP basis.
' D. A H INV cTMCBTc
Investments are stated at coat which approzimatea market. E:cept where
prohibited, cash resources of the individual funds are combined to form a
pool of cash and invantmenta. Inveatmenta in the Pooled Caah Puad
conaiat primarily of invested cash and certi Eicatea of dapoait rhich
mature in one year or lass. Interest income earned on the pooled cash
' and investments is dia[ributed to the appropriate fuada based on the
average monthly balance of iaveatmeata in each fund. "Other cae6 and
investments" represeata employee deferred compensation which is managed
' by the International City Managers Association (ICMA).
In addition to their equities in the pooled cash fund, cash of the
Enterprise and Pension Trust Punde iacludea interest bearing depoaita
' held by the Stara Board of Administration which are restricted as to
their use.
' - 19 - _
i,'~i7~iiO
CITY OF ATLANTIC BEACH, FLORIDA
NOTBS TO FINANCIAL STATEMENTS
SEPTEMBBB 30. 1997
e. IN9EHTORlEs
Inveatoriea coaeiat principally of aspsndabla materials, supplies and
fuel and are valued at the lover of coat (fire[-ia, fire[-out) or market.
Inventory is Ue Geaerel Pond is recorded as m espeadlture at the time
of purchase (purchase method). Tha inventory balance reported is offset
by a fund balance reserve rhich indicates Chat it does not coaatitute
"available spendable reaourcea" even though it la a component of net
current assets.
P. $ESTRICTED ASSBTc
Certain enterprise fund aeseta era rewired to bs asgragstsd from other
current aaeeta due to various bond indenture agreements sad City
Ordinances. These asaeie era legally restricted for specific purposes,
such ae debt service, acv construction, and ranarals and replaeemeate.
G. ACCOUNTING POR YI%ED AcSETS
proprietar,~ Pi~~da _ Capital espeaditurss made for revenue-producing
aaaets, which are employed is operations that era accounted for is the
proprietary funds, are capitalised at historical costa and depreciated
uaiag the straight-line method over their estimated useful lives as
followas
Buildings and improvements 40 years
Improvements other than buildiaga 10 - 50 years
Equipment 3 - q0 yearn
Contributed aaeeta are recorded at fair market value a[ eha date of
contribution. Depreciation recognized on aaeeta acquired or coaatzucted
through reaourcea externally restricted for capital acquiaitione ie
closed to the appropriate contributed fund equity account.
General Ptzed Aaa is A co - Pied assets used in governmental
fund type operations are accounted for in the General Yized Aaeeta
Account Group, rather than in governmental funds. All fired aaeeta are
valued at historical coat. Donated fizad aeseta are valued at their
estimated fair value on the data donated. No depreciation bas been
provided oa general fazed aaeeta. Public domain ("infrastructure")
general fizad aeseta such an ntreeta and nidevalka that are generally
inrnovable and of value only to the City of Atlantic Beach have not been
capitalized.
r,n ;!1!Ei - ZO -
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1
CITY OF ATWNTIC BBACH, PLORIDA
NOTBS TO PINAMCIAL STATB!ffiNTS
BBPTBt~BB 30. 1987
H. BSCOUNTING FOB LONC-TBRN OBLIGATIONS
Long-term obligatioae, general obligation or revenue bonds, used to
finance proprietary fund operationa end payable Erom revenue of the
proprietary funds are recorded in the applicable Eund. General
obligation boada and other forme of long-term obligatioaa supported by
general revenue are obligatioae of the Citp ae a whole and not its
individual eonatituent funda. Accordingly, eucb unmatured obligatioaa of
the City are accounted for in the Cameral Loag-Term Obligations Account
Group.
I. At LON TE ONP N AT D Rc PAYA !R
Accumulated unpaid vacation sad sick pay ere accrued when incurred is
proprietary funda. The amount of accumulated vacation and sick pay
recorded in the govaramentel funda is that amount, adjusted to currant
salary coats, which is ezpacted to be liquidated with espeadable
available Financial reaourcea. Only the currant portion is reflected in
the funda. The remainder of the liability is reported in the General
Long-Term ODligationa ACCOanC Group. The guidelines of Pinancial
Accounting Standards Board Statement No. 43 were applied Sa determiaiag
the liability for both governmental and proprietary Eunda.
J. PROPBRTY TAXBS
The aaaeaement of all properties and the collection of ell property ta:as
are made through the Property Appraiser sad Ta: Collector of the Citp of
Jackaoaville. Gaaarel property terse era recorded as received in cssh,
which approzimatea ta:ee levied, lean discounts, for the current fiscal
year.
R. INTBRPUND T
During the course aE normal operationa, the City has various tranaections
between funds to construct assets and comply with local ordinances and
other legal reatrictiona. These traasactione era reflected an operating
transfers.
L. aBNeION TRUST PLarDS 1rD PPNSION BXPBNSB
The Ci[y accounts for its Pension Plans wader Pineacial Accounting
Standards Hoard (PASS) Statement No. 35 "Accounting sad Reporting Dy
Defined Benefit Peaaion Plana". The peaaion plena cover aubetentially
all of the City's full time employees. The City records peaaion coats in
the period salaries era earned. Pension ezpease includes normal cost
plus amortization of peat service coat over 25 yearn.
- 21 -
~~, ~ i-t
~; (l.r
CITY OP ATLANTIC BHAC$, PLOHIDA
NOTHS TO FINANCIAL STAT6I~NTS
sePTHMBHH 30. 1987
N.
DHPHR&HD CONPHNSATION PI~r ,
'
iDia City reports its Internal Heveaue Code 6ection 457 deferred
compsasstion plm ee m agency fmd is aceordmce rith Govermrontal
Accomtiag Stmdazda Board (GASH) Statement Mo. 2. '
N. CONTBIB *zHD aIT r
Contributed capital in the proprietary fund types represent contriDUtiona
from other fmda, developers, and Yadarai, State and local grmt
programs. Contributions are used primarily for capital outlay projects
and are racogniaed as increases in equity is the period they are earned
or received.
O. RESHBV6 OF B N NHTAI6 a•IN 8 '
Beservea recorded is the govarnaieatal Cmds represent portions of fmd
balmca vhicb cemot be appzoprinted for ezpeaditures or vhieh have been
segregated for specific future uses. ,
Heservea recorded in Che eaterpriae Emda era created Dp the azietaaca of
assets rsatricted for debt aervica, construction, reasrala and '
replacements.
P. TOTAr_ COL aniS ON iNPD TATEMHNTS '
Total columns oa tDe Combined Piamcial 6tatsmeats are captioned
"Mamormdm Oaly' to indicate that they era preaeated only to facilitate
finmcial malyaie. Data is these column do not preaeat finmcial '
position, results of operations, or chmgea in finmcial position in
conformity with generally accepted accomtiag principles. Neither is
each data compareDle to a consolidation. Iatezfmd elimiaatioaa have not ,
been made in the aggrega[ioa of this data.
CITY OP ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMEEH 30. 1987
' 2. CASH AND IN9ESTMENTS
Cash Deposits:
' At year-end, the carrpiaq amount of the City's depoai to vas 8293,467 and the
bank balance vas 5689,661. Deposits in banks and naviaga and loans era
' colla[eralised as public funds through a State procedure provided for in
Chapter 280, Florida Statutes. Financial iaatitutioae qualiEyiaq as public
depositories place with the State Hoard of Administration aecuritiee rhich
have a market value equal to 50 percent of the average daily balances Eor
each month of all public deposits in ezcaaa of any applicable depoai[
insurance. Tha Public Deposit Security Trust Pund has a procedure to
allocate and recover lo9aea in Che event of a default or insolvency. Nhea
' public depoaita are made in accordance with Chapter 280, no public depositor
shall be liable for any los6 thereof.
Inveatmeata:
The City's investment practices are governed by Chapter 280, Florida
Statutes. At September 30, 1987 the City's inveatmenta consisted of
' certificates of depoaita and investments with stets agencies. Market values
appro:imeted book values at September 30, 1987.
' The certificates of deposits era considered to bs category one credit risk
inveatmenta, rhich means Chep are insured or collateraliaed rith aecuritiee
held by the City's agent in the City's name. The depoaita and iaveatawnta
with state agencies are aoL included or classified by credit risk since Chap
are Geld by an independent agency. There vets ao violations of the legal or
contractual provisions Eor depoaita and investments.
' The total cash sad iaveetmant balance of the City is comprised of the
folloving items:
Petty cash on hand E 400
' Savings and sassy market accounts _ 293,087
Total cash 293,467
' Certificates of deposit with local banks:
31-90 days maturity
318,223
91-180 days maturity 312,863
181-360 days maturity 2,192,122
Total certificates of deposit 2,823,20E
Invested cash vi[6 fiscal agent 399,435
Investment with State Board of Admiaiatratioa 3,258,268
' Total iaven[meata 6,480,911
' Total cash and inveatmsata
Leas: restricted cash sad investments 6,774,378
1.968,741
TO Cal untesttiC tad cash and iave atnleat6 E4.ED5, 637
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CITY OP ATLANTIC BHACB, FLORIDA
NOTES TO FINANCIAL STATB)&N1'6
SHPTH!®H8 30. 1987
3. P80PHRTY, PLANT AND HDDIpM6NT'
A aummasp of changes is general fized aaseta follors:
Balance, Balazce,
October 1,
1986
Additions Dalationa September 30,
1987
Land j 143,702 1221,566 = - i 365,268
euildiage 329,071 381,744 - 710,815
Improvemeata other
than buildings 441,318 - - 441,318
Hquipmeat 656.927 117.323 19,861 754.389
Total f1.571.018 f720.633 f19.BR1 E2_271.790
A suamary of fized assets o[ the Hatsrprise Funds et Beptember 30, 1987
followa:
Total
VaHr Sarar $ani tattoo -Buccaneer Dist i t EnGrprise
FuM Fund Fund Mater Funds Sewr Funds FwMs
Lane f - f 65,557 f - f 26,681 f 117,799 f 210,037
8ui !dings 393,718 505,685 - 27,004 53,356 979,763
Isgrovenents other
than buildings 1,568,145 4,099,253 - 1,331,695 3,026,856 10.025,949
Inproveernts
froe ioint
venture - 676,802 - _
- 616,802
Machinery and
e9ufDegnt 104,604 93,252 306,529 - - 504,385
Lazs - accueglated
deDreciati on l6W.102) !888.042) (177.599) !68.770) (13iDA1) (1.431.594)
Total
Conatructioa in progress for [he ¢ntsrpriae Puada is as
Eollora:
Committed
Bzpended to Federal Hequi red
Project September 30, Serer and State Putara
Authorization 1987 L+ygd Puadina Ptnancinq
Sewer system
imprOVemeat9 f1.2a6.7AD f1.D91.780 jyy,~ ,4e E 8SlyC
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CITY OF ATLANTIC BEACR, PLO@IDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1987
4. LONG-TERM OHLIGATIORS
Tae Eolloving is n euemary of the long-taro obligations of the City for the
year ended September 30, 19872
General Enterpri sa
Lono-Tarv Obli anti ons Funds
General Accrued
Revenue Obligation Conpensated Revenue
_@gn~,Z_ Bonds Absences @onds Totsl
ObligaHanz payable at
October 1, 1986 (252,754 f307,000 (77,726 (4,282,799 54,920,279
Nev Bonds Issued:
1985 Florida Municipal loan
Council pooled Loan
pragran Revenue Bonds 321,911 321,911
Debt prinei pal paid (22,864) (45,000) - (251,584) (;19,448)
Net increase :n compensated
absences - 21.523 21.523
Obligations payable at
5eptanber 3D, 1987 (451 801 ~ ~ Sa.n31.215 iq.944"26B
Bonds payable at September 30, 1987 are comprised o£ the folloviaq
individual iesueaz
General obligation bondaz
1958 Sewer System aerial bonds, payable in annual
iaatalnlenta of (20,000 plan interest tarough
1988, bearing inierant at 3.B\ f 20,000
1971 Sever System aerial boade, payable 1a annual
iastalnlenta of 522,000 to (40,000 plus interest
through 1995, bearing interact at 5.75\ 242,000
Revenue bands:
1985 Buccaneer District Meter and Sever aerial bonds,
payable is equal annual iaatalmeata of principal
and interest of approzimately 5347,500 through
2000, bearing iatereat at 9\ 2,600,600
State Pollution Control Bonds, Series "Q", payable
is annual inatalmm~ta of 550,000 to f190,000
plus iatereat through 2000, bearing interest at B\ 1,405,000
1985 Florida Municipal Loan Council Pooled Loan
Program Heveaue Honda payable in amual
inatalmenta of (69,284 to 539,000 plus iatereat
through 1995, bearing interest at a variable
rate (approzimating 6.5- at September 30, 1987)2 577.416
TO[al 54.845.016
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CITY OP ATLANTIC BEACH, PLOBIDA
NOTES TO FINANCIAL SSATENBNTS
The annual requirements to emorti:e nll debts outstanding at September 3D,
1987, are es follovsi
General Lonq-Tare Obligatioaa
Year Ending A~couat Orn~ Eat r rise P~ada
September 30 principal Interest gpgl principal Interest Total
1988 S 99,492 S 49,495 S 143,987 f 80,615 i 232,584 S 313,199
1989 94,284 43,701 137,985 173,500 338,296 511,796
1990 94,284 37,572 131,856 1BB,i00 322,776 512,176
1991 99,384 31,444 130,728 209,600 305,901 515,501
1993 99,284 24,991 126,275 231,800 287,163 518,963
Thereafter 332.173 36.913 369.086 3 ,147.300 L , 384.880 4 .532.180
Total t~l f226.11fi11fi E1.037.917 E4.031.214 52.871.600 E6.902.B1G
General obligation bonds of the Loaq-Term ODligations Account Group represent
bonds issued by the City for conatruetion of (1958 aeries) and later
improvements and e:tanaioaa to (1971 asriea) the City's never ayatem. These
bonds rare iaeued as general obligetiona of the Citp end, tDarafore, are not
obligations of the individual Entarpriae (Sever) fund.
During 1985, the City oDtainad a State Bond Loan rhich i• administered Dy We
State Board of Administration and aecurad by Stets Pollution Control Bonds,
Series "4", to support funding for improvement and ezpaaeioa of its aevar
system, These bonds era payable Erom pledged revanuea derived from the
operations of the aevar ayatem. Under the terms of the agreement, the City
may later pledge additional legal and available funds to repay the loan, as it
deems appropriate.
During 1985, the City iaeued revenue bonds to acquire an additional rater and
newer ayatem. These Ronda are payable from the net revenues of the Buccaneer
District water and Serer System end ere not general obligatioaa of the Citp.
Duziaq 1986, the City elected to participate 1n the Florida Municipal Loan
Council Pooled Loan Program (Revenue Bonds, Sariea 1985). Under this program
the City is eligible to horror up to fi, 070,510 to be used to Einanee capital
projects. Through September 30, 1987 the City has borrowed f577,416 of rhich
approzimately 50 to included as as obligation of the Eaterpriae Pund riW the
remainder as an obligation of the Lonq-Term Obligations Account Group. The
amortization schedule above includes iatereat on these obligations at an
assumed rata of b.54, which approzimatee the actual rate at September 30, 3987
(the actual rate is variable).
In November 1987, subsequent to the fiscal year sad, the City of Atlantic
Beach borrowed an additional 5224,977 from the Florida Municipal Loaa program.
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CITY OP ATLANTIC BHACN, PLOHIDA
NOTBS TO FINANCIAL STATHMHNI'S
SePTElO7HN 30. 1987
Haveaue bonds of the Hntsrpriss Funds contain various terms and covenants
whicD require the City to maintain adaquete user rotes sad to account Eor
the deposit and disbursement of revenues in accordance witb eataDlished
priorities. As of September 30, 1987, the City res subatea[ially !n
compliance vitD each covenants.
5. SMPLOYHH H&NHPITS
' The City maiateian three single employer Public Hmployeaa Retirement
Systems. Thera is one non-contributory defined benefit pension plan
' (General employees' Retirement Plan) and tro contributory defined benefit
pension plane (Police Officers' and Firefighters' Retirement Plane). Tbeae
retirement plena are accounted for in the City's Peaaioa trust Pwd. Total
peaaion ezpenae for all funds during the pear ended September 30, 1987 res
' 553,796. The Citp's pension contribution is computed using accepted
actuarial methods and, ezcapt for the effects of plm amendments, iE nay, in
not azpectad to increase materially is the future in relation to total
' payroll ezpease. 6mployeoe are fully vented after 10 years.
A. PENSION BHNHPIT OBLIGATION
' TDe amomt show below as the "pension benefit obligation" is a standardised
diacloaure measure of the preaeat value of penaioa benefits, adjusted for
the effacta of projected salary increases, estimated to be payable in the
future en a result of employee service to data. Tha meaaura is tbs
actuarial preaeat value of credited projected banaflta and is intended to
Delp users saaaas cDe system's funding statue oa a going-concern Daaie,
aaneas progrean being made in accumulating sufficient anaetn to pay benefits
' when due, and allor !or comparisoaa among public employee retirement
ayetema. The measure is independent of the actuarial funding method used to
determine coatriDutioaa to cDe ayatam.
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CITY OP ATLANTIC BHACe, PLOBIDA
NOTES TO YINANCIAL STATH!ffiNYS
SEPTEMBER 30. 1987
The penaioa benefit obligation ras determined as part of an actuarial
valuation of the plan as of September 30, 1986. Significant actuarial
aaaumptiona used is determining the pension benefit obligation include (a) e
rate of return oa tbs investment of present and future aaeats of a percent
per year compounded annually, (b) projected aelary increases of 6 percent
par year compounded annually, attributable to inflation, (c) additional
projected aalazy increases ranging from 0.0 Co 3.0 percent per year,
depending on age, attributable to seniority/merit, and (d) the assumption
that benefits will not iacreaae after retirement. At September 30, 1986,
the aeaeta is arcane of the pension benefit obligation rare 5179,330,
date~3ned as follows
Pension Benefit Obligations
Retirees and Deaeficiaries currently
receiving beaefita
Terminated employees not yet
receiving benefits
Currant employeeas
Accumulated employee coatributioaa
including allocated iaveatmeat
income
Employer financed - Yeatsd
Employer financed - Noa-vented
Total Pension Benefit Obligation
Het aaeats availaDla for Denefita,
at coat (market value vas same
as coat)
Assets is ezcesa of or (less) thaw
the Peasioa Benefit Obligation
General Police
~yloveen Officers PireEightera
5326,495 S 52,026 { 64,016
45,687 54,513 26,689
none none none
339,621 173,475 49,708
116.958 54.167 37.179
828,761 334,181 177,592
729.132 523.427 267.305
S(99. 629) S1fi 9.24fi S ao.713
During the year ended September 30, 1986 the plan ezperiancad a net change
of 8119,325 is the penaioa benefit obligation. There were no plan
ameadmenta or changes is actuarial aaaumptiona.
B. CONTRIB ITION REO IR D ONTRIB ~7'ION (BBB Statistical Section)
The City's funding policy provides for periodic employer coatributioaa at
actuarially determined rates that, azpreaaed as percentages of annual
covered payroll, are designed to accumulate auEficiant assets Co pay
beaefita when due. The normal cost and actuarial accrued liability are
determined using an entry age actuarial funding method. UBEunded
actuarial accrued liabi litiea are being amortized as a level percent of
payroll over a period of 25 years.
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' CITY OP ATLANTIC BE71CH, PLOQIDA
NOT66 TO [INANCIAL 527178146928
S9PTEl03B9 30. 1997
1 During We year ended September 30. 1987 contributions totaling =12{,100
(576,884 employer, 5{,205 employee, and 543,011 state) vsre mods in
accordmce with contribution requirements determined Dp m actuarial
veluetioa of tae plm as of 6sptember 30, 1985. Sigaificmt actuarial
aaaumptioaa used to compute contribution requirements were the same as
those used to compute the atmdasdised measure of the pension benefit
obligation.
6. D9PB898D COMPENSATION PLAN
' The Citp offers itn employees a deferred compensation plm created !n
accordance rite Internal 8evaaus Code Sactloa {87. She plan, available to
all City Eaployees, permits them to defer a portion of their salary until
future pears. The deferred compsnaatioa is not available to employees until
' termination, retirement, death, or mforeseabla emergency.
All amomts of compensation deferred under the plan, all property and rights
purchased rit6 thoaa amomts, and all income attributeDle to shoes amounts,
property, or rights ors (until paid or made availaDls to the employee or
other beneEiciarp) aolalp the property and righU of the Citp (ritaout being
restricted to the provisions of bsnsfita under chs p3m), subject only Co
' the claims of the City's general craditora. Participmta' rights order the
plm ors equal to those o[ general creditors of the City in m amount equal
Co the fair market velua of the deferred accomt Eor oath particlpmt.
' It ie the opinion of the Citp legal comael that the Citp hoe no liability
Eor looses under [hs plm but doss have the duty of dun cars that xould be
required of m ordinary prudent investor. The Citp believes tact it is
' mllkely tact it rill use the aasete to satiety the claims o[ general
creditors is tae future.
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CITY Ol ATLAtll'IC BEACH, lLOHIDA
MOTES TO FINANCIAL 6iATRffiNT6
SEP1'El10E8 30. 1997
7. SBG74HNT INlO8F01TION lOH 61llEHP@ISE FUNDS
Tba City Las established aaparata Enterprise Puada to account for castes,
serer end eaaitation aervicee. Segment information for the City'a
Enterprise Funds for the yesr ended September 30, 1987 la as follorsl
Total
Buccaneer bistrtct Sanitstian Enterprise
Voter Lund $ewr Fund Yater Fund Sever FeM Fund Lands
Operating revenues S 326,168 f 835.978 S 232,120 S 549,551 1 613,179 52.357,2%
Deprac/ati on 70,228 139,976 38,175 73,510 31,190 353,379
Operating intone (toss) 36.588 111,307 96,351 275,854 98,384 618,484
Non-oPeratin9 intone
(asDense) 101,836 370,235 42,736 363,635 9,772 888,214
Operating transf4rs in
(out) (47,740) (132,591) 16,725 (74,295) f4B,376) (286,277)
Net intone (loss) 90,684 348,951 155,812 565,194 59.780 1,220,121
Wt property. plant and
equlpMnt 1,402,365 4,492,507 1,316,610 3,064,930 128,930 10,405.342
Net wrking capital 293,781 927,487 63,108 147,474 125,755 1,557,605
Long-terw debt 22,015 1,350,000 853,707 1,746,893 3,972,615
Total equity 1,799,359 5,999,965 711,840 2,748,503 250,685 10,914,352
Total assets 1,958,160 7,706,749 1,627,728 3.921,513 2&1,202 15,494,352
B. INTEHPUND TRANSACTIONS HECONCILIATIOH
A auomarp of interfund transfers during tbs fiscal year ended September 30,
2987, is ea follorar
Transfers to _
Capital Debt
General Proiec[e eel Total
Transfer froms
Enterprise 1286,277 f - { _ 1288,277
General - - 39,821 39,821
Special Hevenue 81,083 92.189 _ s~~~?
Total en47 na0 ee 169 "~6~1 E479.1s0
The interfund receivable/payable at September 30, 1987, ran betrasn tLs
General land and the Niacellanaous Grants spacial revenue fund.
1
CITY OP ATLANTIC BRACH, FLORIDA
' NOTHS TO FINANCIAL STATEMENT6
SEPTEMBER 30. 1987
9. JOINT VHNTUHB
' Ia 1985. pureumt to m ia[erlocal agreement authorised Dy Ploride Stntutes
Section 163.01, [he City joined rith the City of Jacknoavilla Beach and the
City of Neptune Beach to conn[ruct and operate affluent ovtfall lines and
disposal facilities, together xith all rile lmde, right-of-ways, eaaameata,
and other entitlements necessary for the construction and vas thereof.
The construction of the ovtfall linen and disposal facilities xere funded by
the mmicipalitiea in the following proportioaa:
Atlm[ic Beach 33.06
Jacksonville Reach 55.78
Neptune Beach 11.16\
Total 100"00\
Each City has recorded its abare of the project in its om fiamcia3
' statements. The City recorded its portion of the joint venture
(approzimately 5290,000) in the property accomta of the City's Sexer Pmd.
The City also records approzimately 5325,000 of additional property
purchased rit6 grmt proceeds from the Florida Department of Enviromgatal
Regulation since the grmt for [ha ovtfall lines ran ararded to the City of
Atlantic Beach. Therefore, the total value of the joint venture oa the
City's books in approzimately E615,000. The project ran completed in 1986
and depreciation (using the straight-lino method over 25 yearn) began in
1987.
The City of Atlm[ic Beach provides all accounting and purchasing aervieea
for Che joint venture. Repair and maiateamce of the ovtfall linen and
disposal of the facilities will be shared by the participating
municipalities in the perceatagen noted above. No repair and mainteamce
ezpeasea related to the joint venture rare incurred in 1987.
10. RHLATED PARTIES
' The Superintendent of Public Norka is a former omen of the Buccaneer Water
6 Sexer Plant. As a former omer, he is now the holder of a bond which van
' issued by the City in 1985 to purchase Buccaneer Water S Sever. During 1987
he received 512,800 in principal and 523,693 in interest from the City.
11. SUBSEQUENT EVENTS
' The pension fund began investing in marketable equity aecuritiea is October
1987 just prior to the October ntoek market fall. By December 31, 1987,
soma of the October losse^ had been recovered and the net unrealized loan
(oa the 51,625,000 originally invented rich the money manager) wan
appro:imately E47,000 (which ie less than 3~ of invented funds).
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REPORTS ON YEDERAL AND
STATE YINANCIAL ASSISTANC$
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Deloitte
Haskins+Sells
Certified public Accountants
So the Honorable wambera of the City Commiaaioaers,
City of Atlantic Baeeh, Plorida
Suite 7240
200 West ForsNh Street
Jacksonville. Florida 32202-0371
(904) 354-8333
ITT telex: 4995Fy12
we nave a:amiaed the general purpoaa financial atatemeats of tae Citp of
Atlantic Beaea, Plorida, for the year ended September 30, 1987, and nave
issued our report thereon dated December 31, 1987. Our ezamiaation of
each general purpose Financial statements vas made is accordance vita
generally accepted auditing standards sad the atandarda for financial
and compliance audits toatained in the Standards for Audit of
Govermnental Organisations. Programs. Activities. awd Puactieas, issued
by the U. S. General Accounting Office, end accordingly, included auca
tests of the accounting records end such other auditing procedures as ve
considered aeceaeary is tae circumatancas.
Our ezamination ran made for Che purpose of forming m opinion oa the
general purpose financial statements taken as a rhole. Tha accompanying
Schedule of Federal and State Pinaacial Assistance is presented for
purpoaea of additional aaalyaia end is not a required part of the
general purpose financial statements. tae information in that schedule
line bean aubjactsd to the sudlting procedures applied is tae •:amiaation
of tae general purpose financial statements and, is our opinion, is
fairly steted in ell material raapeets in relation to the general
purpose financial atatsateats taken as a whole.
December 31, 1957
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CITY OP ATLANTIC BEACH, PLORIDA
SCIIEDULS OF PEDERAL AND STATB PINANCIAL
ASSISTANCE '
FOR TRB PISC~ YEAP END[D SEPTEMBER 30 198'
BEGINNING ,
PEDERAL
PROGRAM FUND
BALANCE AT
GRANT AGENCY/GRANT TITLE
GRANT ID NO./GRANT PERIOD CPDA
~B AWARD
AMOUNT OCTOBER 1,
1986
pgDERAL DIRECT ASSISTANCE
impartment of Treanurv '
Revenue Sharing IDf10-2-016-001 '
Period ending: EP16 21.3 E 57,264 E 7,119
Revenue Sharing ID/10-2-017-001
Period endings EP17
21.3
98,612
1 a9 '
Eavi[onmental Protection Aaencv
Naatevater Treatment Construction
ID fC120747-030
Period Ending: 2/88
TOTAL PEDERAL DIRECT ASSISTANCE
66.418 51,258,789 24.488
STATE OP PLOeIDA GRANTS
F3 'd D oartme t E Eo d t 1
Reauletion
Naatevater Treatment Construction
ID (747040
Period Endings 2/87 N/A 5693,326 530.582
Plorida Department of Community
Affairs
Local Government Comprehenaive Planning
Aasiatance
ID /87-LP-03-04-26-02-096
Period Ending: 9/87 N/A E 17,224
Local Government Comprehenaive Planning
Aasiatance
ID f87-LP-03-09-26-02-220
Period Endings 9/87 E 4,200
TOTAL STATE OY PLORIDA GRANTS call Gpf
SEE NOTES TO SCHEDULE OP PEDEBAL AND STATE PINANCIAL ASSISTANCE ~a~vai
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RBVEND6 RBCOGNIZSD
FSDSRAL/ CITY INTSRBST TOTAL
STATE NATCNING INCOME REV¢NUg
ENDING
PDND
BALANCB AT
SEPTSMBSR 30,
EXPBNDITDREe 1987
S - S - S - S - E 7,119
881 - x,845 2.726 53, 9fi5
881 - 1.845 2.726 61.084
S -
17,224 - - - 17.224
4.200 - - - a,200
E 21.424 f 33.983 f - f _ f 85.989 f
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CITY OF ATLANTIC BEACH, PLORIDA
NOTE TO SCHEDULE OP PEDERAL AND
STATE FINANCIAL ASSISTANCE
POE THE FISCAL YEAR ENDBD SEPTEMBER 30. 10 7
1. DEPAeTMENT OF ENVIROlDOINTAL REGULATIONS DISCLOSURE HEpUIREMENTS
During the fiscal year ended September 30, 1987, the City completed the
construction of Sts wastewater treatment plant which wan funded in part
by a grant from the Plorida Department of Environmental Regulation. The
total project budget and Che current year revenue and ezpenditurea are
as follove:
Beginning Balance
Revenue:
City of Atlantic Beach
State of Plorida
Total eevenue
Ezpenditures:
Construction costa
Administration
Land structures, right-of-ways
Planning and design
Project inspection fees
Project performance aervicea, operation
sad maintenance maauala
Other eagineoriag fees
Audit aervicea
Contingency
Total Ezpendi[ures
Ending Balance
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567,267 33,983
693.326
1.260.593 33,983
1;151,232 30,416
5,476 -
69,943 30,582
23,816 2,768
2,775 751
7,351 48
1.260.593 64.565
S - S
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0~50E3
1 Deloitte
Haskins~Selis
1
Certified Public Accountants Suite 1240
1 200 West Forsyth Street
Jacksonville. Floritla 32202-4377
19041 354-8333
1 ITT Telea: 4995642
1o Wa Honorable Membsra of the City Commiaaioners,
1 Clty of Atlantic Beach, plorids
i We have a:amiasd the general purpose financial statemeate of the City of
Atlantic Beach, Ylorida, (the "City") for the year ended September 30,
1 1987, sad have iaauad our report thereon dated December 31, 1987. Our
examination vas made in accordance ritb geuerallp accepted auditing
atandarda and Ws standards of financial and compliance audits contained
1 is the St d da f A•eit f r 1 Ozq i ion v
A t+uiti d r.a ti a, iaauad by Ws II.S. General Accounting Office,
and accordingly, included aucb tests of the accounting racorda and such
other auditing procedures as re considered nsceaaarp in the
1 circmataatea.
lha mamgemeat of the Citp of Atlantic Beach 3s rsaponaibls for the
1 Citp'a compliance rith lava and ragulatioua. In connection rlta our
ezamiaatioa referred to above, rs selected and Cested [zanaaetiona end
racorda Co determine Che Citp'a compliance with lava sad regulatioaa
1 noacoaipliaacs rith rhich could have n material effect oa the general
purpose Financial statements of tea City.
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tae raaults of our tests indicate test [or the itama tasted, the Citp of
Atlantic Beach, Florida, complied rith those proviatons of lava sad
regulations noacoapliencs rith rhich could have a material effect on the
general purpoas financial atatesents. Nothing came to our atteattaa
that caused ua to believe that for the items not tasted tea City of
Atlantic Beach, Florida, rsa not is compliance rith Lars or regulations
noacomplimce vita mica could have a material effect on tea City's
general purpose financial atatemanta.
.__J,p~p,~ C~t~dLl,._,cl~p~j
December 31, 1987
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i Deloitte
1 Haskins,-Sells
Certified Public Accouma Ms
1
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1 To Che Honorable Nembere of the Citp Commissioners,
City of Atlantic Beach, Florida
Suite 1240
200 West Forsyth Sveel
Jacksonville. Floeida 32202-4371
190413548333
ITT Telex: 4995642
1 We have e:amiaed the general purpose financial staCemante of the City of
Atlantic Beech, Ylorida, ([ha "City") for Che pear ended September 30,
1987, and have iaeued our report thereon dated December 31, 1987. Our
1 e:aminatioa ran made in accordance ri[h generally accepted auditing
standards; the standards for [innaeial and coapliaaca audits contained
in the Standards for Audit of Governmental Organiz ti Prory~am_;
_
Activities, and Puactiaae, iaeued by the D.S. General Aecomtiag OEficet
1 the Single Audit Act of 19841 and the provisions of OlID Circular A-128,
A dl to of ctat d L 1 Go r M t and accordi~ly, included such
testa of the accounting records and such other auditing procedures an re
1 considered necessary in the circumstsacea.
1'hs aanagameat of the Citp in responeibls for the City's compliance rith
lave and regulations. In connection rich the ezamination referred to
1 above, w aslected and tasted traaesctions sad racorda from each major
federal and state financial anaiatance program sad certain aomlejor
1 federal and state financial assiatanca programs. 17u purpose of our
tenting of traaaaetioas and records from those federal sad state
financial aaniataace programs ran to obtain raaeonable asavrance that
the Citp had, is ell mstarial reapacts, admiais[end major programs, and
1 ezecuted the tested noasajor program traasactiaas, in compliance rich
lava sad regulations, including those pertaining to [iaanciel reports
sad claims for advancen and raiotbursemeats, aoacompliaata rich which re
believe could hove a material e[fect oa the allorabilitp of program
1 ezpandituraa.
Ia our opinion, for ehs year ended September 30, 1987, the City
1 administered each of its major federal end state financial aasiatance
programs is compliance, is all material raapects, rich Sara and
regulations, including Chose pertaining to financial reports sad claims
for advances cad reimbursements, non-compliance rich rhich rs believe
1 could have a material effect oa the ellorebility of program sspendi[ures.
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iha nsulta of our teetinq of trmaactime and racorda wlwtad tros
nomajor Gdersl aad etaG !lnmeiel aseietmce programs indicsts tDat
for the trmssetima sad records tested the Citp complied rit6 tee
lsw and requlstfoaa referred to show. Our Gstinq we more lisiGd
' thm mould De aacsatarp to szprase m opiaim oa rhether the Citp
sdministered those progzms is eosplimca is all material raspsets
rith [hose law and rsgulatioaa noncomplimce rith rhich w believe
O could hsvs a material affect oa the allaraDilitp of progrm
eapsndituras; howvar, with respect to the lrmaactione and raeords
that more not tested Dp ua, nothing cane to our atteatlon to ~iadieats
' Chet tee Cip had not complied ritb lsrs and regulations.
' ~n~ ~ R ~Q)C.O'J
' December 31, 1987
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~% Vi ~) ~~ i '~ ,
1 Deloitte
~ Haskins-Sells
CenlLed Public Accountams Suite 1240
' 20o well Fosym sveel
Jacksonville. FloriOa 32202-4371
f904135a~&333
ITT Telex: 4995642
So the Honorable Members of the City Commiaeioaars,
City o[ Atlmtic eeecD, Plorida
Ne have e:aminad Che general purpose financial statements o[ Ws City
of Atlmtic Beaeb, Plorida, (the "City") for tae year ended September
30, 1987, and nave isauad our report taeraon dated December 31, 1987.
Aa pert of our ezmiaation, re made a atudp and evaluation of tae
system of internal accounting control of the Citp to the extent re
coaaidersd neceaaary to evaluate the apstem as required by geasrsllp
accepted eudtting atmdards and the stmdards for financial complimce
audits contained iv the U.S. General Accounting Otfice Btmdarda for
Aud+t f Gov tal O gasi s[i Proa A ti iti s n
' Puvetiova. ForTthe purpose of thin report, rs have claaaifiad tae
significant internal accounting coa[rola in the folloring categories:
cash receipts and diaburaemsnta, investments, receivables, budgets,
fired enacts, payroll, purchaaiag, grmts, debt administration and
general ledger. Dur study included all of the control categorise
listed above. 'ras purpose of our study end evalwtion ras to
determine tae nature, Liming, and extent of tae auditing procadurea
neceaearp for e:preaaiag m opinion oa tae City's financial
atatemente. Our study and eveluetion ran more limited than mold bs
necessary to ezprean m opinion on the system of internal accomtinq
' control taken as a Thole or on my of the categories of controls
identified above.
The amagemeat of the Citp of Atiaatle Beaca, Florida, is responsible
' for establishing and maintaining a apstem of iatsrael accomtiag
control. In fulfilling Cala respoaaiblilty, estimates and judgmeata
by mmageewnt are required to saseas the expected bsnafita and related
costa of control procedures. the objectives of a sya[am are to
provide mmagament vita raaeonabla, but not absolute, aasurmee teat
aaaata are safeguarded against loos from unautaorized uas or
' diapoaition, and Caat trmaactiona era executed in accordance rich
managemeat'a authorlaation and recorded properly to permit tae
preparation of financial atntements in accordmce rich generally
accepted accounting principles. Because of inaerent 1Loitations in
' my ayntem of internal nccounting control, errors or irregularities
may nevertaelese occur and not be detected. Also, projection of my
evaluatoa of tae apstem to future periods is subject to the rink [bat
' procsdurea may become inadequate becauas of chaagee in conditions or
that the degree of compliance rich the procedures may deteriorate.
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Our etude and evaluation aade for the 1Lited purpose described is the
first paragraph mould not necusarilp disclose all material wskwsses
in cbe epstem. Accordioglp, w do not espraas an opinion on the spsGm
of internal accounting control of the Citp o[ Atlantic Beach, Rorida,
taken as a rbola or oa any o[ the estegoriss of controls identified in
the first paragraph. Howwr, our etude end avsluatioa diseloee~ ao
condition that w believe to be s materiel wetness.
1Lis report is inGnded solely for CBs we of the Citp of Atlantic
eeseb, Florida, and tLe 6nviromaatsl Protection Agency (the cognisant
audit agency) end abould not be uesd for any other purpoea. ~7'hie
restriction 3a not intended to licit the distribution of this report
rhicb, upon accaptaace Dp the Cltp Cossissionera and the 6nviranwntal
Protection Agancp, ie a matter of public record.
~~•1X ~~ Q +~J
December 31, 1987
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1 Deloitte
Haskins-rSells
1-- _ __ - __ _----
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Lenrfi¢d Pu bbc Acco~ntanls 9vite 1240
200 West Forsyth Street
Jacksonville. Florida 32202-4371
(904) 359A333
ITT Telez: 4995642
20 the Honorable Nembsrs oL Ns Citp Coaoissioners
Citp oL Atlantic Beach, Florida
Ns beve ezamined the general puzpoaa financial atatemeata of the City of
Atlantic BeacA, Ploride, (the ^City") for Na peat ended September 30,
1987, end beve isauad our report Nareon dated Oacember 31, 1987. Aa
part of our ezamiaatioa, w cads a atudp and evaluation of the intaraal
control systems, including the appliesbls intaraal administrative
controls, used is administering federal tiaaacisl assistance programs to
the eztent rs considered necessary to evaluate the spatsu ea required by
gaaerallp accepted auditing steadazds, Chs standards Eor [insncial and
cospllenca audits contained is the St Ada a Eo A•att t C r -m 1
Oraanizetieas. Proara.:.a. Activities, a"d lenc ions, issued Dy the Q.S.
General Accounting Ofties, the Single Audit Act of 1984, sad the
provisions of 0)ffi Circulsr A-128, Audits of State ~d al Gover ^!~n -,
Poz the purpose of Nit report, w bare classified Ns sigaiticant
internal accomtiag and administrative controls vaed in administering
federal financial aasistascs programs is Ns folloriuJ categories:
Aeeomting Controls:
Cash receipts end disbursements, iavestaafate, rsceivablaa, budgets,
fired aaaeta, payroll, puzcbasinq, grants, debt sdmiaistratioa,
sad general ledger.
Adminiatrativs Controls:
General Sequirementa - Political activitp, Davis-Bacon Act,
Civil sights, cash management,
relocation assistance sad Yadsral
tinaacial reports.
Specific sequiremeate - types of services, aligibillty,
matchiui level oI effort, reporting,
special requirements (NS Citp bas no
sub-recipients or indirect cost
allocation aya[am).
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The mmegament o[ the City of Atlantic Beach, [lorida, is raaponsiDle for
esteblieainq and maiotainiaq internal control systems used in
adminietsriag federal !lasaclal essietanca programs. Ia fulfilliaq that
reapoasibilitp, estimates and judgmeata by mmagemsae are required to
aaaeas the szpactad benefits sad related costs of eoatrol~procadurea.
The objectives of internal control systems uaad is administering federal
financial assistance programs ere to provide maaageaient rit6 reasoaaDls,
Dut not abaoluta, esaurmce [hat, with raapact to federal financial
aasiatanca programs, resource uaa ie consistent riU lava, regulstioas,
and policiaai resources era eafaguardad against rests, lose, and misuse)
sad ralieble data are obtained, maintained, sad fairly disclosed is
reports.
Becauaa of inherent limitations is nap aystam of internal accounting and
adminia[rativa controls used in adainistariaq federal financial
assistance programs, errors or irregularities may neverthalasa occur sad
not be detected. Also, projection of anp evaluation of the aystema to
future periods is subject to the risk that procaduraa may becoae
inadequate because of changes in conditions or tact the degree of
compliance with tae procedures may deteriorate.
Our study included all of the applicable control categories listed
above. During the year ended September 30, 1987, the szpandad 94\ of its
total federal financial aasistaaee under major federal financial
aasiatmce programs. Nith respect to internal control nystems used is
' administering major federal financial assistance programs, our study end
evaluation included considering the types of ~arrors and irraqularitias
tact could occur, determining tae iatarnal control procedures tact should
' prevent or detect each errors and irregularities, determining rhathar Cho
aecaeaarp procedures are prescribed and era being Lollovsd satisfactorily,
sad evaluetiaq any weaknesses.
Nith reapact to the iatarnal control systems used solely in administering
the nomajor federal financial assistmce programs of the City, our study
and evaluation van limited to a preliminary ravier of the aystams to
' obtain an understanding of the control eavironmaa[ sad the floc of
trananetloaa through the accounting system. Our etude and evaluation of
the internal control systems used solely is administering tae aonmajor
federal financial assistance programs o[ the City did not aztend beyond
' this preliminary ravier pease.
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Our study and waluetloa ras sere liaibd rhea could W aecesssrp to
' esprsss m opinion oa the internal control apatms wad in sdslniseerinq
the federal finmeial aasistmce pzogrens of the Citp o[ Atlmtic Beach,
Florida. Accordingly, re do not szprese m opinion oa the internal control
' apstsss wad in adsinLGrinq the teMrsl flnmeisl assistmw progrms of
the Citp of Atlmtic Beach, ilorids. Further, re do mt esQress m opialon
on Us internal control apatms used is adainistesing the wejor [adaral
finmcial assistmcs progrma of the Cicp of Atlmtic Basch, Florida.
Also, our ezmination, made in aceordmce ritb the staaderde wntioaad
above, could not nscaasarilp disclose saterial reakaesses is the internal
' control apatesa uaad aolslp in administering noamajor (adaral Cinmcial
assistmce progzms.
Howvsr, our study end svalwtioa and our a:miwtloa disclosed m
coaditlon that w believe to be a material wetness Lo relation [o a
federal finmeial aasiatmca progrm of the Citp of Atlmtic Baaeh,
Florida.
Ibis report is intended aolely for the use of tbs Citp oL Atlmtic Beaeb,
Florids, and the Bnvironmantal Protection Ageacq (the cognismt audit
' agency), and should not ba used for mp other purpose. this restriction is
not iatmded to limit the distribution of this report, which, upon
acceptmce by the Citp Coaoissioners o[ Atlmtic Beaeb, Florida, and the
Bavironmsatal Protection Agsncp, is a salter of public neord.
December 31, 1987
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