Audit Report - 2000-2001FINANCIAL STATEMENTS
AND
INDEPENDENT AUDITORS' REPORTS
CITY OF ATLANTIC BEACH
ATLANTIC BEACH, FLORIDA
SEPTEMBER 30, 2001
FINANCIAL STATEMENTS
AND
INDEPENDENT AUDITORS' REPORTS
CITY OF ATLANTIC BEACH
ATLANTIC BEACH, FLORIDA
SEPTEMBER 30, 2001
CONTENTS
Page
Independent Auditors' Report 1-2
General-Purpose Financial Statements
Combined Balance Sheet -All Fund Types
and Account Groups 3-4
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances -All Governmental
Fund Types and Expendable Trust Fund 5
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances -Budget and
Actual -All Governmental Fund Types 6-7
Combined Statement of Revenues, Expenses and
Changes in Retained Earnings -All Proprietary
Fund Types 8
Combined Statement of Cash Flows -All Proprietary
Fund Types 9-10
Combined Statement of Changes in Plan Net Assets -
Pension Trust Funds 11
Notes to Financial Statements 12-29
Required Supplementary Information
Schedules of Funding Progress 30
Schedules of Contributions From Employer and Others 31
Combining and Individual Fund Statements and Schedules
General Fund
Schedule of Expenditures -Budget and Actual 32-33
Special Revenue Funds
Combining Balance Sheet 34-35
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances 36-37
FINANCIAL STATEMENTS
AND
INDEPENDENT AUDITORS' REPORTS
CITY OF ATLANTIC BEACH
ATLANTIC BEACH, FLORIDA
SEPTEMBER 30, 2001
CONTENTS
(Continued)
Page
Combining and Individual Fund Statements and Schedules
(Concluded)
Proprietary Fund Types -Enterprise Funds
Combining Balance Sheet 38-40
Combining Statement of Revenues, Expenses and
Changes in Retained Earnings 41-43
Combining Statement of Cash Flows 44-49
Schedules of Net Revenues in Accordance With Bond
Resolutions 50
Fiduciary Fund Types
Combining Balance Sheet 51
Combining Statement of Plan Net Assets -Pension
Trust Funds 52
Additional Information
Bond Covenant Continuing Disclosures
Selected Financial Information and Operating
Data Regarding the System:
Historical Revenues and Expenses 53
Major Utility Customers (Unaudited) 54
Summary of Water Usage (Unaudited) 55
Summary of Wastewater Treatment (Unaudited):
Atlantic Beach Sewer Division 56
Buccaneer Sewer Division 57
Other Bond Covenant Disclosures:
Utility Service Tax Collections 58
Ad Valorem Tax Collections 58
Other Pension Schedules
Computed Pension Contribution Comparative Schedule 59
Pension Revenues By Source and Expenses By Type 60
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FINANCIAL STATEMENTS
AND
INDEPENDENT AUDITORS' REPORTS
t ..~
CITY OF ATLANTIC BEACH
ATLANTIC BEACH, FLORIDA
SEPTEMBER 30, 2001
CONTENTS
(Concluded)
Additional Elements of Report Prepared in Accordance With
Government Auditing Standards, Issued By the Comptroller
General of the United States; the Office of Management and
Budget (OMB) Circular A-133; and the Rules of the Auditor
General of the State of Florida
Page
1. Schedule of Expenditures of Federal Awards and State
Financial Assistance 61
Independent Auditors' Report on Compliance and on Internal
Control Over Financial Reporting Based on an Audit of
General-Purpose Financial Statements Performed in Accordance
With Government Auditing Standards 62-63
C Independent Auditors' Report on Compliance With Requirements
Applicable to Each Major Program and Internal Control Over
Compliance in Accordance With OMB Circular A-133 64-65
Schedule of Findings and Questioned Costs in Accordance With
OMB Circular A-133 66-68
Summary Schedule of Prior Audit Findings in Accordance With
OMB Circular A-133 69
Corrective Action Plan in Accordance With OMB Circular A-133 70-72
Management Letter 73-74
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INDEPENDENT AUDITORS' REPORT
Honorable Mayor, City Commission and City Manager
City of Atlantic Beach
Atlantic Beach, Florida
G ay
Company
'~' We have audited the accompanying general-purpose financial statements of the City of Atlantic Beach,
Florida as of September 30, 2001, and for the year then ended, as listed in the accompanying table of
contents. These general-purpose financial statements are the responsibility of the City's management.
~"' Our responsibility is to express an opinion on these general-purpose financial statements based on our
audit.
'('~' We conducted our audit in accordance with auditing standards generally accepted in the United States of
1 America and the standards applicable to financial audits contained in Government Auditing Standards,
~,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the general-purpose financial statements
I are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
- amounts and disclosures in the general-purpose financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the
overall general-purpose financial statement presentation. We believe that our audit provides a reasonable
` ~ basis for our opinion.
In our opinion, the general-purpose financial statements referred to above present fairly, in all material
respects, the financial position of the City of Atlantic Beach, Florida as of September 30, 2001, and the
results of its operations and the cash flows of its proprietary fund types for the year then ended in
conformity with accounting principles generally accepted in the United States of America.
r,,,, In accordance with Government Auditing Standards, we have also issued a report dated November 21,
2001, on our consideration of the City of Atlantic Beach, Florida's compliance and on internal control
{ ~ over financial reporting based on an audit of general-purpose financial statements performed in
accordance with Government Auditing Standards. That report is an integral part of an audit performed
in accordance with Government Auditing Standards and should be read in conjunction with this report in
considering the results of our audit.
Certified Public Accountants
P.O. Box 23999. 222 N.E. 1st Street • Gainesville, Florida 32602 • (352) 378-2461 • FAX (352) 378-2505
Laurel Ridge Professional Center • 2347 S.E. 17th Street • Ocala, Florida 34471 • (352) 732.3872 • FAX (352) 732-0542
t 443 East College Avenue • Tallahassee, Florida 32301 • (850) 224-7144 • FAX (850) 224-1762
1727 2n0 Street • Sarasota, Florida 34236 • (941) 365-3774 • FAX (941) 365-0238
~. MEMBERS OF AMERICAN AND FLORIDA INSTITUTES OF CERTIFIED PUBLIC ACCOUNTANTS
J MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES AND S.E.C. PRACTICE SECTIONS
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Honorable Mayor, City Commission and City Manager
,~ City of Atlantic Beach
Atlantic Beach, Florida
INDEPENDENT AUDITORS' REPORT
(Concluded)
` " Our audit was made for the purpose of forming an opinion on the general-purpose financial statements
taken as a whole. The combining and individual fund statements and schedules listed in the table of
contents, as well as the schedule of expenditures of federal awards and state financial assistance, as
required by the U.S. Office of Management and Budget, Circular A-133, Audits of States, Loca!
Governments, and Non-Profit Organizations, and Chapter 10.550, Rules of the Auditor General of the
State of Florida are presented for purposes of additional analysis and are not a required part of the
general-purpose financial statements of the City of Atlantic Beach, Florida. Such information has been
subjected to the auditing procedures applied in the audit of the general-purpose financial statements and,
"~ in our opinion, is fairly presented in all material respects in relation to the general-purpose financial
statements taken as a whole.
The required supplementary information presented on pages 30 and 31 is not a required part of the
t general-purpose financial statements but is supplementary information required by the Governmental
Accounting Standards Board. We have applied certain limited procedures, which consisted principally
~"' of inquiries of management regarding the methods of measurement and presentation of the supplementary
~ information. However, we did not audit the information and do not express an opinion on it.
November 21, 2001 G~~Y C~/~
Gainesville, Florida
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GENERAL-PURPOSE FINANCIAL STATEMENTS
These basic statements provide a summary overview of the financial position of all funds and account
groups, as well as the operating results of all funds and cash flows of the proprietary fund types. They
also serve as an introduction to and summary of the more detailed statements and schedules included in
the accompanying information section.
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COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 2001
CITY OF ATLANTIC BEACH, FLORIDA
Fiduciary Account Groups
Governmental Fund Types Proprietary Fund Types Fund Types General General Totals
Special Debt Capital Internal Tmst and Long-Term Fixed (Memorandum Only)
General Revenue Service Protects Enterprise • Service Agency Obligations Assets 2001 2000
Assets
Cash and Cash Equivalents S 5,101,711 $ 2,233,890 S 121,132 S 467,123 S 6,554,099 S 56,127 S 247,970 S 14,782,052 3 13,343,162
Investments 8,891,138 8,891,138 8,860,069
Accounts Receivable (Net of Allowances) 214,656 338,171 552,827 592,338
Special Assessment Receivable -
Current 64,500 64,500 75,000
Note Receivable - Cutrent 10,362 10,362 10,362
Due From Other Funds 50,238 50,238 98,843
Due From Other Govetnmenu 174,816 149,458 34,555 358,829 783,223
Inventories 11,933 5,761 17,694 69,227
Other Current Assets 23,661 23,661 25,343
Restricted Assets:
Cash and Cash Equivalents .6,725,363 6,725,363 7,910,819
Interest Receivable 0 188,872
Special Assessment Receivable -
Long-Term 327,908 327,908 388,899
Note Receivable -Long-Tenn .56,992 56,992 67,354
Other Noncurrent Assets 18,800 18,800 0
Property, Plant and Equipment -
Net 27,701,940 241,382 S 8,308,285 36,251,607 29,877,699
Construction-in-Progress 1,945,919 416,888 2,362,807 7,548,537
Unamortized Loan Costs 419,612 419,612 438,552
Amount Available in Other Funds
For Payment of Long-Term Debt S 121,132 121,132 117,853
Amount to be Provided For
Payment of Long-Term Debt 1,183,580 1,183,580 1,342,241
Amount to be Provided For
Payment of Long-Term Portion
of Compensated Absences 259,681 259,681 246,914
Total Assets S 5.553,354 3 2,383,348 S 121.132 S 501,678 S 44,193,088 S 297,509 S 9,139,108 S 1,564,393 S 8,725,173 S 72,478,783 S 71,985,307
See accompanying notes.
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COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 2001
CITY OF ATLANTIC BEACH, FLORIDA
(Concluded)
Liabilities and Ftmd Equity
Liabilities
Accounts Payable and Accrued Liabilities 3 284,414 S 15,661
Due to Other Funds 50,238
Due to Other Governments 487
Deposits
Deferred Revenue 10,000
Current Liabilities (Payable From
Restricted Assets):
S 9,790 S 219,309 S 82,456 S 36,460
394,604
81,745
S 648,099 S 539,678
50,238 98,843
487 0
394,604 300,570
91,745 52,408
. Accounts Payable 48,257 48,257 63,018 .'.
Revenue Bonds Payable -Current
Portion 498,385 498,385. 476,318 :.
Interest Payable 591,119 591,119 600,941
Revenue Bonds Payable 21,523,181 S 1,304,712 22,827,893. 23,449,167
Accrued Compensated Absences 83,708 72,059 259,681 415,448 374,258
.
Total LIabilities 284,901 75,899 S 0 9,790 23,440,308 154,515 36,460 1,564,393 S 0 25,566,266 _
25,955,201
Fund Equity ~~
Contributed Capital 6,914,071 6,914,071 6,748,937 ~ .
Investment in General Fined Assets 8,725,173 8,725,173 9,087,267
Retained Earnings:
Reserved For Renewal and Replacement 500,000 500,000 500,000
Reserved For Debt Service 1,080,606 1,080,606 1,068,706
Unreserved Retained Earnings 12,258,103 142,994 12,401,097 12,659,246
Fund Balances:
Reserved For Payment of Long-Term
Debt 121,132 121,132 117,853
Reserved For Police Training and
Other Expenditures 170,956 170,956 178,458
Reserved For Retirement 8,931,692 8,931,692 8,925,648
Other Reserves 11,933 2,307,449 282,481 2,601,863 1,945,290
Unreserved Fund Balances 5,256,520 209,407 5,465,927 4,798,701
Total Fund Equity 5,268,453 2,307,449 121,132 491,888 20,752,780 142,994 9,102,648 0 8,725,173 46,912,517 46,030,106
Total L[abilities and Fund Equity 5,553,354 2,383,348 121,132 501,678 44,193,088 297,509 9,139,108 1,564,393 8,725,173 S 72,478,783 71,985,307
See accompanying notes.
Fiduciary Account Groups
Governmental Fund Types Proprietary Fund Types Fund Types General General Totals
Special Debt Capital Internal Trust and Long-Term Fixed (Memorandum Oely)
General Revenue Service Projects Enterprise Service Agency Obligations Assets 2001 2000
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COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2001
CITY OF ATLANTIC BEACH, FLORIDA
Revenues
Taxes
Licenses and Permits
State-Shared Revenues
Other Intergovernmental Revenues
Charges For Services
Fines and Forfeitures
Interest Income
Miscellaneous Revenues
Total Revenues
Expenditures
Current:
General Government
Public Safety
Transportation
Culture and Recreation
Debt Service:
Principal Retirement
Interest and Fiscal Charges
Capital Outlay
(Total Expenditures)
Excess (Deficiency) of Revenues Over ([lnder) Expenditures
Other Financing Sources (Uses)
Operating Transfers In
Operating Transfers Out
Total Other Financing Sources (Uses)
Excess (Deficiency) of Revenues and Other Financing Sources
Over (Under) Expenditures and Other Financing Uses
Fund Balances, Beginning of Year
Fund Balances, End of Year
Fiduciary
Governmental Fu nd Types Fund Totals
Special Debt Capital Expendable (Memorandum Only)
General Revenue Service Projects Trust 2001 2000
$ 3,327,241 $ 916,776 $ 0 $ 0 $ 0 $ 4,244,017 $ 3,576,832
259,805 0 0 0 0 259,805 231,357
1,529,339 0 0 0 0 1,529,339 1,544,583
468,563 364,511 0 59,376 0 892,450 740,410
111,083 0 0 0 0 111,083 143,896
173,960 0 0 0 71,852 245,812 162,615
258,008 86,202 4,303 24,730 8,459 381,702 397,887
89,266 5,089 0 31,325 0 125,680 82,545
6,217,265 1,372,578 4,303 115,431 80,311 7,789,888 6,880,125
625,532 346,386 0 0 0 971,918 664,884
3,572,258 50,291 0 0 78,314 3,700,863 3,547,184
727,239 105,816 0 0 0 833,055 1,389,751
1,028,674 0 0 0 0 1,028,674 470,117
0 0 155,382 0 0 155,382 160,636
0 0 64,893 0 0 64,893 71,944
0 0 0 146,770 0 146,770 628,439
(5,953,703) (502,493) (220,275) (146,770) (78,314) (6,901,555) (6,932,955)
-
562
263 870,085 (215,972) (31,339) 1,997 888,333 (52,830)
,
611,630 9,544 219,251 0 0 840,425 1,222,828
(327,679) (72,004) 0 0 (9,499) (409,182) (662,538)
283,951 (62,460) 219,251 0 (9,499) 431,243 560,290
547,513 807,625 3,279 (31,339) (7.502) 1,319,576 507,460
4,720,940 1,499,824 117,853 523,227 178,458 7,040,302 6,532,842
$ 5,268,453 $ 2,307,449 $ 121,132 $ 491,888 $ 170,956 $8,359,878 $7,040,302
See accompanying notes.
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COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
ALL GOVERNMENTAL FUND TYPES
FOR THE YEAR ENDED SEPTEMBER 30, 2001
CITY OF ATLANTIC BEACH, FLORIDA Page 1 of Z Pages
General Fund Special Revenue Funds Debt Service Fund
Variance Variance Variance
Favorable Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable)
Revenues
Taxes $ 3,193,267 $ 3,327,241 $ 133,974 $ 783,388 S 916,776 $ 133,388 $ 0 $ 0 $ 0
Licenses and Petmits 215,023 259,805 44,782 0 0 0 0 0 0
State-Shared Revenues 1,619,363 1,529,339 (90,024) 0 0 0 0 0 0
Other Intergovernmental Revenues 456,928 468,563 11,635 397,531 364,511 (33,020) 0 0 0
Charges For Services 114,721 111,083 (3,638) 0 0 0 0 0 0
Fines and Forfeitures 113,716 173,960 60,244 0 0 0 0 0 0
Interest Income 190,000 258,008 68,008 74,890 86,202 11,312 3,725 4,303 578
Miscellaneous Revenue 72,364 89,266 16,902 8,150 5,089 (3,061) 0 0 0
Total Revenues 5,975,382 6,217,265 241,883 1,263,959 1,372,578 108,619 3,725 4,303 578
Expenditures
Current: _
General Government 698,365 625,532 72,833 395,677 346,386 49,291 0 0 0
Public Safety 3,690,084 3,572,258 117,826 54,139 50,291 3,848 0 0 0
Transportation 716,874 727.239 (10,365) 1,580,001 105,816 1,474,185 0 0 0
Culture and Recreation 1,394,726 1,028,674 366,052 0 0 0 0 0 ~ 0
Debt Service:
Principal Retirement 0 0 0 0 0 0 155,327 155,382 (55)
Interest and Fiscal Charges 0 0 0 0 0 0 64,959 64,893 66
Capital Outlay 0 0 0 0 0 0 0 0 0
(Total Expenditures) (6,500,049) (5,953,703) 546,346 (2,029,817) (502,493) 1,527,324
(220,286)
(220,275)
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Excess (Deficiency) of Revenues Over (Under)
Expenditures (524,667) 263,562 788,229 (765,858) 870,085 1,635,943 (216,561
(215,972)
589
Other Financing Sources (Uses)
Operating Transfers In 600,000 611,630 11,630 10,636 9,544 (1,092) 219,251 219,251 0
Operating Transfers Out (345,465) (327,679) 17,786 (71,959) (72,004) (45) 0 0 0
Total Other Financing Sources (Uses) 245,535 283,951 29,416 (61,323) (62,460) (1,137) 219,251 219,251 0
Excess (Deficiency) of Revenues and Other
Financing Sources Over (Under) Expenditures
and Other Financing Uses (270,132) 547,513 817,645 (827,181) 807,625 1,634,806 2,690 3,279 589
Fund Balances, October 1, 2000 270,132 4,720,940 4,450,808 827,181 1,499,824 672,643 0 117,853 117,853
Fund Balances, September 30, 2001 $ 0 S 5,268,453 $ 5,268,453 $ 0 $ 2,307,449 $ 2,307,449 $ 2,690 $ 121,132 $ 118,442
See accompanying notes.
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COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
ALL GOVERNMENTAL FUND TYPES
FOR THE YEAR ENDED SEPTEMBER 30, 2001
CITY OF ATLANTIC BEACH, FLORIDA Page 2 of 2 Pages
Revenues
Taxes
Licenses and Permits
State-Shared Revenues
Other Intergovernmental Revenues
Charges For Services
Fines and Forfeitures
Interest Income
Miscellaneous Revenue
Total Revenues
Expenditures
Current:
General Government
Public Safety
Transportation
Culture and Recreation
Debt Service:
Principal Retirement
Interest and Fiscal Charges
Capital Outlay
(Total Expenditures)
Excess (Deficiency) of Revenues Over (Under)
Expenditures
Other Financing Sources (Uses)
Operating Transfers In
Operating Transfers Out
Total Other Financing Sources (Uses)
Excess (Deficiency) of Revenues and Other
Financing Sources Over (Under) Expenditures
and Other Financing Uses
Fund Balances, October 1, 2000
Fund Balances, September 30, 2001
Capital Projects Funds Totals (1liemorandum Only)
Variance Variance
Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
$ 0 $ 0 $ 0 $ 3,976,655 $ 4,244,017 $ 267,362
0 0 0 215,023 259,805 44,782
0 0 0 1,619,363 1,529,339 (90,024)
290,000 59,376 (230,624) 1,144,459 892,450 (252,009)
0 0 0 114,721 111,083 (3,638)
0 0 0 113,716 173,960 60,244
16,000 24,730 8,730 284,615 373,243 88,628
40,000 31,325 (8,675) 120,514 125,680 5,166
346,000 115,431 (230,569) 7,589,066 7,709,577 120,511
0 0 0 1,094,042 971,918 122,124
0 0 0 3,744,223 3,622,549 121,674
0 0 0 2,296,875 833,055 1,463,820
0 0 0 1,394,726 1,028,674 366,052
0 0 0 155,327 155,382 (55)
0 0 0 64,959 64,893 66
655,238 146,770 508,468 655,238 146,770 508,468
(655,238) (146,770) 508,468 (9,405,390) (6,823,241) (2,582,149)
(309,238) (31,339) 277,899 (1,816,324) 886,336 2,702,660
0 0 0 829,887 840,425 10,538
0 0 0 (417,424) (399,683) 17,741
0 0 0 412,463 440,742 28,279
(309,238) (31,339) 277,899 (1,403,861) 1,327,078 2,730,939
309,238 523,227 213,989 1,403,861 6,861,844 5,457,983
$ 0 $ 491,888 $ 491,888 $ 0 $ 8,188,922 $ 8,188,922
See accompanying notes.
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COMBINED STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS
ALL PROPRIETARY FUND TYPES
FOR THE YEAR ENDED SEPTEMBER 30, 2001
CITY OF ATLANTIC BEACH, FLORIDA
Operating Revenues
Interfund Charges
Customer Charges
Other Income
Total Operating Revenues
Operating Expenses
Personal Services
- Contractual Services
~ Supplies
Repairs and Maintenance
r Heat, Light and Power
Depreciation
Other Expenses
(Total Operating Expenses)
Operating Income (Loss)
Nonoperating (Expense) Income
l Connection Charges
Sewer Generation Charges
Interest Income
Interest Expense
Amortization of Loan Costs
Total Nonoperating (Expense) Income
} Net Income (boss) Before Operating Transfers
1 Other Financing (Uses) Sources
Operating Transfers In
Operating Transfers Out
Total Other Financing (Uses) Sources
Net (Loss) Income
Depreciation on Fixed Assets Acquired By State-
Shared Revenues Externally Restricted For
Capital Acquisition
(Decrease) Increase in Retained Earnings
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1 Retained Earnings, Beginning of Year
~r"- Retained Earnings, End of Year
Totals
Internal (Memorandum Only)
Enterprise Service 2001 2000
$ 0 $ 1,723,714 $ 1,723,714 $ 1,644,655
6,458,551 0 6,458,551 6,202,161
322,013 0 322,013 418,164
6,780,564 1,723,714 8,504,278 8,264,980
1,127,457 1,223,789 2,351,246 2,123,741
1,926,249 224,342 2,150,591 1,742,742
322,944 45,641 368,585 312,943
169,118 45,280 214,398 201,654
388,815 7,357 396,172 380,854
1,352,180 46,669 1,398,849 1,262,178
1,231,285 211,953 1,443,238 1,403,870
(6,518,048) (1,805,031) (8,323,079) (7,427,982)
262,516 (81,317) 181,199 836,998
252,562 0 252,562 187,786
137,965 0 137,965 135,465
415,172 0 415,172 494,505
(1,000,423) 0 (1,000,423) (788,653)
(19,690) 0 (19,690) (18,940)
(214,414) 0 (214,414) 10,163
48,102 (81,317) (33,215) 847,161
0 155,796 155,796 47,898
(600,000) 0 (600,000) (654,508)
(600,000) 155,796 (444,204) (606,610)
(551,898) 74,479 (477,419) 240,551
231,170 0 231,170 232,365
(320,728) 74,479 (246,249) 472,916
14,159,437 68,515 14,227,952 13,755,036
$ 13,838,709 $ 142,994 $ 13,981,703 $ 14,227,952
See accompanying notes.
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COMBINED STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES
FOR THE YEAR ENDED SEPTEMBER 30, 2001
CITY OF ATLANTIC BEACH, FLORIDA
Cash Flows From Operating Activities
Operating Income (Loss)
Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided By (Used In) Operating Activities:
Depreciation and Amortization
Loss on Disposals
Changes in Assets - (Increase) Decrease:
Accounts Receivable
Due From Other Governments
Inventory
Changes in Liabilities -Increase (Decrease):
Accounts Payable and Accrued Liabilities
Customer Deposits
Deferred Revenue
Net Cash Provided By (Used In) Operating
Activities
Cash Flows From Noncapital Financing Activities
Connection Charges
Sewer Generation Charges
Operating Transfers In From Other Funds
Operating Transfers Out to Other Funds
Net Cash (Used In) Provided By Noncapital
Financing Activities
Cash Flows From Capital and Related Financing
Activities
Change in Interest Receivable
Collections on Note Receivable
Collections on Special Assessments
Contributed Capital
Property, Plant and Equipment Additions
Principal Payments on Bonds and Notes Payable
Interest Paid
Nct Cash (Used In) Capital and Related
Financing Activities
Cash Flows From Investing Activities
Interest Income
Net (Decrease) Increase in Cash and Cash
Equivalents
Cash and Cash Equivalents, Beginning of Year
Cash and Cash Equivalents, End of Year
Totals
Internal (Memorandum Only)
Enterprise Service 2001 2000
$ 262,516 $ (81,317) $ 181,199 $ 836,998
1,371,870 46,669 1,418,539 1,281,118
137,101 0 137,101 0
(6,035) 0 (6,035) 77,502
375,000 0 375,000 (375,000)
51,769 0 51,769 (7,521)
50,854 29,891 80,745 (547,938)
94,034 0 94,034 1,223
29,337 0 29,337 (43,529)
2,366,446 (4,757) 2,361,689 1,222,853
252,562 0 252,562 187,786
137,965 0 137,965 135,465
0 155,796 155,796 47,898
(600,000) 0 (600,000) (654,508)
(209,473) 155,796 (53,677) (283,359)
184,420 0 184,520 73,543
10,362 0 10,362 10,363
71,491 0 71,491 74,975
396,303 0 396,303 433,731
(2,924,528) (143,606) (3,068,134) (2,941,729)
(476,318) 0 (476,318) (473,926)
(1,010,245) 0 (1,010,245) (798,001)
(3,748,415) (143,606) (3,892,021) (3,621,044)
396,372 0 396,372 494,505
(1,195,070) 7,433 (1,187,637) (2,187,045)
14,474,532 48,694 14,523,226 16,710,271
$ 13,279,462 $ 56,127 $ 13,335,589 $ 14,523,226
See accompanying notes.
9
COMBINED STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES
FOR THE YEAR ENDED SEPTEMBER 30, 2001
CITY OF ATLANTIC BEACH, FLORIDA
(Concluded)
Balance Sheet Components of Cash and
Cash Equivalents
Cash and Cash Equivalents
Restricted Assets:
Cash and Cash Equivalents
Total Cash and Cash Equivalents -End
of Year
Noncash Activity
Net Capitalized Interest Expense (Income)
Totals
Internal (Memorandum Only)
Enterprise Service 2001 2000
$ 6,554,099 $ 56,127 $ 6,610,226 $ 6,612,407
6,725.363 0 6,725,363 7,910,819
$ 13,279,462 $ 56,127 $ 13,335,589 $ 14,523,226
$ (86,918) $ 0 $ (86,918) $ 72.697
See accompanying notes.
10
COMBINED STATEMENT OF CHANGES IN PLAN NET ASSETS
PENSION TRUST FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2001
CITY OF ATLANTIC BEACH, FLORIDA
General
Employees' Police Totals
Retirement Retirement (Memorandum Only)
Plan Plan 2001 2000
Additions
Contributions:
Employer
Employee
State of Florida
Total Contributions
Net Investment (Loss) Income
Operating Transfers In
Total Additions
Deductions
Benefits
Refunds of Contributions
Administrative Expense
(Total Deductions)
Net (Decrease) Increase
Transfer of Firc Fighters' Pension
to City of Jacksonville, Florida
Net Assets Held in Trust For Pension
Benefits, Beginning of Year
Net Assets Held in Trust For Pension
Benefits, End of Year
$ 266,148 $ 113,534 $ 379,682 $ 375,434
53,186 19,280 72,466 72,356
0 69,557 69,557 66,107
319,334 202,371 521,705 513,897
(72,564) 10,089 (62,475) 572,030
14,077 10,514 24,591 46,320
260,847 222,974 483,821 1,132,247
225,232 168,340 393,572 361,892
3,268 171 3,439 23,465
39,379 41,387 80,766 103,719
(267,879) (209,898) (477,777) (489,076)
(7,032) 13,076 6,044 643,171
0 0 0 (1,615,927)
5,124,484 3,801,164 8,925,648 9,898,404
$ 5,117,452 $ 3,814,240 $ 8,931,692 $ 8,925,648
See accompanying notes.
11
NOTES TO FINANCIAL STATEMENTS
CITY OF ATLANTIC BEACH, FLORIDA
Note 1 - Summary of Significant Accounting Policies
The City of Atlantic Beach, Florida (the City) is incorporated and operates under a form of
government which comprises an elected City Commission (four Commissioners and a
Mayor-Commissioner) and provides, under the administration of an appointed City Manager,
the following services: public safety, public works (streets and infrastructure), recreation,
r sanitation, stormwater, planning, zoning, water and sewer services, and general and
E ~ administrative services.
The accounting policies of the City conform to generally accepted accounting principles as
applicable to governments. The following is a summary of the more significant policies used
in the preparation of these financial statements.
Reporting Entity
As outlined in Governmental Accounting Standards Board (GASB) Statement No. 14, The
Reporting Entity, the financial reporting entity consists of the primary government,
organizations for which the primary government is financially accountable, and other
organizations whose exclusions would cause the reporting entity's financial statements to be
misleading or incomplete. Each potential component unit is individually evaluated using
specific criteria outlined in GASB Statement No. 14, to determine whether the entity is: a)
part of the primary government; b) a component unit which should be included in the
reporting entity (blended or discreetly presented); or c) an organization which should be
excluded from the reporting entity entirely. The principal criteria for classifying a potential
component unit include the legal separateness of the organization, the financial accountability
of the primary government for the potential component unit resulting from either the primary
government's ability to impose its will on the potential component unit, or the potential
component unit's fiscal dependency on the primary government. Based upon the application
of these criteria, the City has no component units.
Fund Accounting
The accounts of the City are organized on the basis of funds or account groups, each of
which is considered a separate accounting entity. The operations of each fund are accounted
for using a separate set of self-balancing accounts which comprise its assets, liabilities, fund
equities, revenues and expenditures. The various funds are grouped by type in the financial
statements. The following fund types and account groups are used by the City:
^ Governmental Fund Types
General Fund -The general fund is the general operating fund of the City. It is used
to account for all financial resources, except those required to be accounted for in
another fund.
Special Revenue Funds -The special revenue funds are used to account for the proceeds
~` of specific revenue sources (other than major capital projects or expendable trusts) that
1
are legally restricted to expenditures for specified purposes.
12
NOTES TO FINANCIAL STATEMENTS "'
CITY OF ATLANTIC BEACH, FLORIDA
(Continued)
Note 1 - Summary of Significant Accounting Policies (Continued)
Fund Accounting (Continued) --
^ Governmental Fund Types (Concluded)
Debt Service Fund -The debt service fund is used to account for the accumulation of
resources for, and the payment of, long-term debt principal, interest and related costs
other than obligations payable from the operations of the proprietary fund types.
Capital Projects Funds -Capital projects funds are used to account for the financial
resources to be used for the acquisition or construction of major capital facilities (other
than those financed by proprietary fund types and special revenue funds).
^ Proprietary Fund Types
Enterprise Funds -The City maintains two enterprise funds; the utility fund and the
sanitation fund. The utility fund is comprised of the following systems and accounts:
• Water System -Used to account for activities of the water system.
• Sewer System -Used to account for activities of the sewer system.
• stormwater System -Used to account for activities of the stormwater system.
• Bond Construction Account -Used to account for expenditures of utility revenue
bond proceeds for water, sewer, and stormwater system capital projects.
The sanitation fund accounts for the activities of the sanitation system. The enterprise
funds are financed and operated in a manner similar to private business enterprises. The
costs of providing goods or services to the general public are financed or recovered
primarily through user charges.
Internal Service Funds - Internal service funds are used to account for the financing
of goods or services provided by central services departments to other departments of
the City on a cost reimbursement basis.
^ Fiduciary Fund Type
Trust Funds -Trust funds are used to account for assets held as a trustee or agent by
the City for others. The pension trust funds are accounted for in essentially the same
manner as proprietary funds. The expendable trust fund is accounted for in essentially
the same manner as governmental funds.
13
r
~~
NOTES TO FINANCIAL STATEMENTS
CITY OF ATLANTIC BEACH, FLORIDA
(Continued)
Note 1 - Summary of Significant Accounting Policies (Continued)
Fund Accounting (Concluded)
^ Account Groups
General Long-Term Obligations Account Group -This account group is used to
account for the outstanding principal balances of long-term debt and other long-term
liabilities other than those payable from the operations of the enterprise funds.
General Fixed Asset Account Group -This account group is used to account for all
fixed assets of the City other than those accounted for in the proprietary fund types.
t . Basis of Accounting and Measurement Focus
The accounting and reporting treatment applied to a fund is determined by its measurement
focus. All governmental funds and expendable trust funds are accounted for on a spending
or "financial flow" measurement focus. This means that only current assets and current
liabilities are generally included on their balance sheets. Their reported fund balance (net
j""' current assets) is considered a measure of "available spendable resources." Governmental
fund operating statements present increases (revenues and other financial sources) and
decreases (expenditures and other financing uses) in net current assets.
The governmental fund types and expendable trust fund use the modified accrual basis of
accounting. Under the modified accrual basis, revenues are recognized in the accounting
period in which they become measurable and available. "Measurable" means that the
~ amount of the transaction can be determined; "available" means the revenue must be
collectible within the current period or soon enough thereafter to be used to pay liabilities
of the current period. Expenditures, other than interest on general long-term debt which is
recorded when due, are recognized in the accounting period when incurred.
~^ All proprietary funds and the pension trust funds are accounted for on a cost of services or
1 "capital maintenance" measurement focus. This means that all assets and all liabilities
(whether current or noncurrent) associated with their activity are included on their balance
sheets. Their reported fund equity (net total assets) is segregated into contributed capital and
retained earnings components. Proprietary fund type operating statements present increases
(revenues) and decreases (expenses) in net total assets.
The proprietary fund types and pension trust funds use the accrual basis of accounting.
Revenue is recognized when earned and expenses are recognized when incurred. Water,
sewer, sanitation and stormwater services are billed to customers in advance, with excess
consumption charges billed in arrears. Revenues billed in advance are deferred. A
receivable is recorded at year end for unpaid billings plus unbilled amounts less an allowance
for those amounts considered uncollectible.
14
NOTES TO FINANCIAL STATEMENTS
CITY OF ATLANTIC BEACH, FLORIDA
(Continued)
Note 1 - Summary of Significant Accounting Policies (Continued)
Basis of Accounting and Measurement Focus (Concluded) ~'
Proprietary fund types follow all applicable GASB pronouncements as well as the following
pronouncements issued on or before November 30, 1989, unless those pronouncements
conflict with or contradict GASB pronouncements: --
^ Financial Accounting Standards Board (FASB) Statements and Interpretations;
^ Accounting Principles Board (APB) Opinions; and
^ Accounting Research Bulletins.
Pursuant to GASB Statement No. 20, the City has elected not to apply all FASB Statements
and Interpretations issued after November 30, 1989, to its proprietary fund type activities.
Budgets
General governmental revenue and expenditures accounted for in budgetary funds are
controlled by a budgetary accounting system in accordance with various legal requirements
which govern the City's operations. Budgets are monitored at varying levels of classification
detail; however, expenditures cannot legally exceed total appropriations at the individual
iand level. Encumbrances are recorded. Unexpended items which are unencumbered at
year end must be reappropriated in the subsequent year.
Budgets are adopted for all governmental funds (general, special revenue, debt service and
capital projects funds). The City Manager is authorized to transfer budgeted amounts within
departments within any fund; however, any revisions that increase the total expenditures of
any department or fund must be approved by the City Commission. All necessary
supplemental appropriations are adopted by the City Commission and are included in the
reported budgetary data. The budget presented on the combined statement of revenues,
expenditures and changes in fund balances -budget and actual -all governmental fund types
is prepared on the generally accepted accounting principles (GAAP) basis.
Cash and Investments
Except where prohibited, cash resources of the individual funds are combined to form a pool
of cash and investments. Investments in the pooled cash fund consist primarily of cash
invested with the State Board of Administration. Interest income earned on the pooled cash
and investments is distributed to the appropriate funds based on the average monthly balance
of investments in each fund.
Investments are valued at fair market value (see note 2).
For the purposes of the statement of cash flows, the City considers cash and cash equivalents
to include cash and investments with an original maturity of three months or less.
15
r
NOTES TO FINANCIAL STATEMENTS
CITY OF ATLANTIC BEACH, FLORIDA
(Continued)
Note 1 - Summary of Significant Accounting Policies (Continued)
Receivables
~; Receivables are recorded at their net realizable value. The allowance for uncollectible
accounts and assessments at September 30, 2001, in the enterprise funds is $326,247.
Inventories
• Inventories consisting principally of expendable materials, supplies and fuel are determined
by physical count at the City's year end on an annual basis and are valued at the lower of
cost (first-in, first-out) or market. The inventory balance reported is offset by a fund
balance reserve which indicates that it does not constitute "available spendable resources"
even though it is a component of net current assets.
Restricted Assets
Certain enterprise fund assets are required to be segregated from other current assets due to
various bond indenture agreements and City Ordinances. These assets are legally restricted
for specific purposes, such as debt service, new construction, and renewals and
replacements.
Accounting For Fixed Assets
Proprietary fund capital expenditures made for revenue-producing assets, which are
employed in operations that are accounted for in the proprietary funds, are capitalized at
historical costs and depreciated using the straight-line method over their estimated useful
lives as follows:
Buildings and Improvements 10-40 Years
Improvements Other Than Buildings 10-50 Years
Equipment 3-40 Years
Contributed assets are recorded at fair market value at the date of contribution. Depreciation
recognized on assets acquired or constructed through resources externally restricted for
capital acquisitions is closed to the appropriate contributed capital (fund equity) account.
General fixed assets are fixed assets used in governmental fund type operations and are
f accounted for in the general fixed assets account group rather than in governmental funds.
t All purchased fixed assets are valued at historical cost. Donated fixed assets are valued at
their estimated fair value on the date donated. No depreciation has been provided on general
fixed assets. Public domain ("infrastructure") general fixed assets such as streets and
sidewalks that are generally immovable and of value only to the City have not been
r capitalized.
1
16
NOTES TO FINANCIAL STATEMENTS
CITY OF ATLANTIC BEACH, FLORIDA
(Continued)
Note 1 - Summary of Significant Accounting Policies (Continued)
Accounting For Long-Term Obligations
Long-term obligations, including general obligation or revenue bonds used to finance
enterprise fund operations and payable from revenue of the enterprise funds, are recorded
in the applicable fund. General obligation bonds and other forms of long-term obligations --
supported by general revenue are obligations of the City as a whole and not its individual
constituent funds. Accordingly, such unmatured obligations of the City are accounted for
in the general long-term obligations account group (see note 6). _
Compensated Absences
Accumulated unpaid vacation and sick pay are accrued when incurred in the proprietary type ,_,.
funds and the general long-term obligations account group. The guidelines of GASB
Statement No. 16 were applied in determining the liability for both governmental and
proprietary fund types. _.
Revenue Recognition
Utility revenues are reported on the accrual basis in the accompanying financial statements.
Restricted grant revenues, which are received but not expended are recorded as deferred
revenues. Grant revenues receivable are recorded when reimbursable expenditures on those
grants have been incurred but not reimbursed.
Property Taxes
The assessment of all properties and the collection of all property taxes are made through
the Property Appraiser and Tax Collector of the City of Jacksonville, Florida. General
property taxes are recorded as received, in cash, which approximates taxes levied less
discounts for the current fiscal year.
Taxes are levied on November 1 of each year. All taxes become delinquent on April 1 of
the following year. Discounts are allowed for early payment. On or prior to June 1,
interest-bearing certificates are sold for all uncollected real property taxes. Unsold
certificates are held by the City of Jacksonville, Florida.
Interfund Transactions
During the course of normal operations, the City has various transactions between funds to
construct assets and comply with local ordinances and other legal restrictions. These
transactions are reflected as operating transfers (see note 8). In addition, certain transfers
have been made between systems and accounts of the utility enterprise fund as required by
bond covenants. These transactions are accounted for as capital transfers on the combining
statements of the utility fund.
Contributed Capital
Contributed capital in the proprietary fund types represents contributions from other funds,
developers, and federal, state and local grant programs. Contributions are used primarily
for capital outlay projects and are recognized as increases in equity in the period they are
earned or received.
17
I
NOTES TO FINANCIAL STATEMENTS
CITY OF ATLANTIC BEACH, FLORIDA
(Continued)
Note 1 - Summary of Significant Accounting Policies (Concluded)
Reserves of Fund Balances and Retained Earnings
Reserves recorded in the governmental funds represent portions of fund balance which
cannot be appropriated for expenditures or which have been segregated for specific future
uses. Governmental fund reserves at September 30, 2001, are as follows:
~ Special Revenue Funds
Road and Street Expenditures $2,168,072
Tourism and Recreation 128,264
Tree Replacement 3,166
Public Safety 7,947
Total Special Revenue Funds $2,307,449
Capital Projects Fund
{~ Streets and Drainage Projects $ 200,070
Tourism and Recreation 82,411
Total Capital Projects Funds $ 282,481
General Fund
Inventory $ 11,933
fi
Reserves recorded in the enterprise funds are created by the existence of assets restricted for
r.-. debt service, construction, and renewals and replacements. The City Commission may also
designate certain amounts of year end fund balance for various projects.
Total Columns on Combined Statements
Total columns on the combined financial statements are captioned "Totals (Memorandum
Only)" to indicate that they are presented only to facilitate financial analysis. The data in
these columns does not present financial position, results of operations, or cash flows in
conformity with generally accepted accounting principles. Neither is such data comparable
to a consolidation. Interfund eliminations have not been made in the aggregate of this data.
The totals for 2000 are presented for the purpose of additional analysis and are not a
required part of the general-purpose financial statements.
Note 2 - Cash and Investments
The City maintains a cash and investment pool that is designed for use by all funds, except
for those monies which are periodically transferred to the pension custodian. In addition,
investments are separately held and individually accounted for by several of the City's funds
where contractual arrangements and bond covenants provide for and require such
arrangements. The deposits and investments of the pension trust funds which have been
transferred to the pension custodian are held separately from those of other City funds and
are required to be administered by an investment manager.
18
NOTES TO FINANCIAL STATEMENTS
CITY OF ATLANTIC BEACH, FLORIDA
(Continued)
Note 2 - Cash and Investments (Continued)
At September 30, 2001, the carrying amount of cash on hand and on deposit with banks,
including interest-bearing deposits was $33,001, and the related bank balance was $31,051.
Monies which are placed on deposit with financial institutions in the form of demand deposit
accounts, time deposit accounts and certificates of deposit are defined as public deposits.
All of the City's public deposits are held in qualified public depositories pursuant to Florida
Statutes, Chapter 280, "Florida Security for Public Deposits Act." Under the Act, all
qualified public depositories are required to pledge eligible collateral having a market value
equal to or greater than the average daily or monthly balance of all public deposits, times
the depository's collateral pledged level. The pledging level may range from 50% to 125%
depending upon the depository's financial condition and establishment period. All collateral
must be deposited with an approved financial institution.
Any losses to public depositors are covered by applicable deposit insurance, sale of securities
pledged as collateral and, if necessary, assessments against other qualified public depositories
of the same type as the depository in default. Accordingly, all deposits are considered
category one credit risk under GASB Statement No. 3.
The City's investment practices are also governed by Florida Statutes, which allow the City
to invest in certificates of deposit, money market certificates, obligations of the U.S.
Treasury, its agencies and instrumentalities, repurchase and reverse repurchase agreements
collateralized by U.S. securities, and the State Board of Administration. The pension trust
funds are also authorized to invest in corporate bonds, preferred stocks, common stocks, and
mutual funds.
Cash and investments at September 30, 2001, are categorized in accordance with GASB
Statement No. 3 to indicate the level of risk assumed by the City. The pension investments
held by SunTrust Trust Department and Merrill Lynch are considered to be category one
credit risk investments, which means that they are fully insured ($100,000 per participant).
The deposits and investments with state agencies are not classified by credit risk since they
are held by independent agencies. The Bank of America Repurchase Agreement is invested
in treasury funds and is not classified by credit risk since this is a mutual fund. There were
no violations of the legal or contractual provisions for deposits and investments.
The total cash and investment balance of the City at September 30, 2001, is comprised of
the following items:
Cash
Petty Cash on Hand
Checking
Total Cash
$ 1,950
31,051
33.001
19
~~
NOTES TO FINANCIAL STATEMENTS
t CITY OF ATLANTIC BEACH, FLORIDA
t (Continued)
Note 2 - Cash and Investments (Concluded)
Pension Trust Investments
SunTrust Short-Term Treasury Portfolio
SunTrust High-Grade Equity Fund
SunTrust High-Grade Equity Income Fund
SunTrust High-Grade Bond Fund
Merrill Lynch International Mutual Fund
Total Pension Trust Investments
r
Other Investments
Bank of America Repurchase Agreement
Investment With State Boazd of Administration
Total Other Investments
Total Cash and Investments
(Restricted Cash and Investments)
Total Unrestricted Cash and Investments
$ 84,042
2,083,868
1,954,398
3,992,925
775,905
8,891,138
1,350,900
20,123,514
21,474,414
30,398,553
(6,725,363)
$ 23,673,190
Restricted cash and investments at September 30, 2001, in the enterprise funds follows:
i
Enterprise Fund
Utility Fund
Note 3 - Special Assessments
Renewal and
Replacement
$ 500,000 $
Construction Debt
Account Service Total
5,144,757 $ 1,080,606 $ 6,725,363
During 1991, the City imposed a special assessment on residents in a certain area of the City
• known as "Section H" to recover a portion of the costs of water and wastewater
improvements constructed by the City in that area. Assessments are payable in equal annual
installments over twenty years plus interest at 5.35%. Initial assessments are based on front
footage.
r During 1998, the Ciry imposed a special assessment on residents in a certain area of the City
(, known as "Beach Avenue" to recover the costs of sewer improvements constructed by the
City in that area. Assessments are payable in equal annual installments over twelve years
;i"' plus interest at 6.00%. Initial assessments are based on front footage.
The City imposed other special assessments on residents in certain areas of the City known
as "Ocean Grove Unit 2," "Dewees," and "Seminole" to recover the cost of water and
wastewater improvements constructed by the City in those areas. Assessments are payable
in equal annual installments over twelve years plus interest. Initial assessments are based
ri on front footage.
20
NOTES TO FINANCIAL STATEMENTS
CITY OF ATLANTIC BEACH, FLORIDA
(Continued)
Note 3 -
Note 4 -
Special Assessments (Concluded)
Following is a summary of the outstanding balances at September 30, 2001:
Beach
Section H Avenue Other
Assessment Assessments Assessments Total
Principal Receivable,
September 30, 2001 $ 325,526 $ 39,360 $ 27,522 $ 392,408
(Current Portion) (51,290) (7,500) (5,710) (64,500)
Principal Receivable -
Noncurrent $274,236 $ 31,860 $ 21,812 $327,908
Note Receivable
During 1993, the City signed an agreement with a new mobile home park customer which
allowed the customer to pay its sewer connection fee over an extended period. An initial
down payment of $20,000 was received in 1993 on the total connection fee of $175,432.
Per agreement, the remainder will be paid in 180 equal installments of $863.51 beginning
April 1, 1993, with no interest ($10,362 was received during 2001). The City has reserved
the right to terminate service in the event of nonpayment.
Following is a summary of the outstanding balance at September 30, 2001:
Principal Receivable, September 30, 2001 $ 67,354
(Current Portion) (10,362)
Principal Receivable -Noncurrent $ 56,992
Note 5 - Property, Plant and Equipment
A summary of changes in general fixed assets follows:
Balance Transfers
10/1100 Additions (Disposals) In/(Out) 9/30/01
Land 3 1,516,855 S 87,371 S 0 $ 0 3 1,604,226
Buildings 2,885,897 132,776 0 0 3,018,673
Improvements Other Than Buildings 1,257,980 0 (1,006) 830,853 2,087,827
Equipment 2,404,535 570,557 (1,377,533) 0 1,597,559
Construction-in-Progress 1,022,000 364,899 0 (970,011) 416,888
Total Property, Plant and
Equipment 3 9,087,267 ~ 1,155,603 S (1,378,539) S (139,158) 3 8,725,173
Net transfers out of general fixed assets represents enterprise fund assets constructed in
capital projects funds and transferred out when completed.
21
ttr
i'
r
NOTES TO FINANCIAL STATEMENTS
CITY OF ATLANTIC BEACH, FLORIDA
(Continued)
Note 5 - Property, Plant and Equipment (Concluded)
A summary of fixed assets of the enterprise funds at September 30, 2001, follows:
r
Land
Intangible Plant
Buildings
Improvements Other
Than Buildings
Machinery and
Equipment
(Accumulated
Depreciation)
t^ Construction-in-
Progress
Totals
Utility Fund
Bond Total Total
Water Sewer Stormwater Construction Utility Sanitation Enterprise
System System System Account Fund Fund Funds
51,865 S 697,634 ~ 0 S 0 749,499 ~ 0 S 749,499
0 0 205,302 0 205,302 0 205,302
516.932 3,811,621 0 0 4,328,553 0 4,328,553
11,445,630 21.391,637 1,388,681 0 34,225,948 0 34,225,948
418.441 513,926 150,630 0 1,082,998 15,709 1,098,706
(4,250,566) (8,550,648) (95,720) 0 (12,896,934) (9,134) (12,906,068)
19,163 523,937 129,724 1,273,095 1,945,919 0 1,945,919
S 8,201,465 S 18,388,107 S 1,778,617 S 1,273,095 S 29,641.285 S 6,575 S 29,647,859
Note 6 - Long-Term Obligations
The following is a summary of the long-term obligations of the City for the year ended
September 30, 2001:
Obligations Payable at October 1, 2000
(Principal Retired)
Obligations Payable at September 30, 2001
Bonds Payable
Bonds payable are comprised of the following:
General
Long-Term Proprietary
Obligations Fund Types
Revenue Revenue
Bonds Bonds Total
$ 1,460,094 $ 22,977,007 $ 24,437,101
(155,382) (476,318) (631,700)
$ 1,304,712 $ 22,500,689 $ 23,805,401
Utilities System Revenue Bonds, Series 1996
1996 Utility System Revenue Bonds, Payable in Annual
Installments of Principal and Semiannual Installments
of Interest Through October 1, 2025, Bearing Coupon
Rates of 3.90% to 5.50%, Secured Solely by a Pledge
of and Lien on Net System Revenues and Certain Other
Revenues as Defined in the Bond Ordinances.
$ 21,605,000
22
NOTES TO FINANCIAL STATEMENTS
CITY OF ATLANTIC BEACH, FLORIDA
(Continued)
Note 6 -
Long-Term Obligations (Concluded)
Bonds Payable (Concluded)
SunTrust Revenue Bonds, Series 1995
1995 Capital Improvement Bonds, Payable in Quarterly
Installments of Principal and Interest Through
January 1, 2006, Bearing Coupon Rates of 4.40% to
5.85%. $ 587,876
SunTrust Revenue Refunding Bonds, Series 1999
1999 Capital Improvement Revenue Refunding Bonds,
Payable in Annual Installments of Principal and
Semiannual Installments of Interest at a Rate of 4.20%.
The Note is Secured By the City's Utility Service Taxes. 1,612,525
Total Bonds Payable 23,805,401
(Unamortized Discount) (463,730)
(iJnamortized Refunding Loss) (15,393)
Net Bonds Payable $ 23,326,278
Reported on balance sheet as follows:
General Long-Term Obligations $ 1,304,712
Revenue Bonds -Current Portion 498,385
Revenue Bonds -Noncurrent Portion 21,523,181
Net Bonds Payable $ 23,326,278
The annual requirements to amortize all long-term obligations outstanding at September 30,
2001, are as follows:
General Long-Term Obligations
Account Group
9/30 Principal Interest Total
2002 $ 162,345 58,015 220,360
2003 169,738 50,214 219,952
2004 177,552 41,968 219,520
2005 188,175 32,754 220,929
2006 121,550 23,042 144,592
Thereafter 485,352 85,855 571,207
Total $ 1,304,712 $ 291,848 $ 1,596,560
Proprietary Fund Types
Principal Interest Total
$ 498,385 1,183,801 1,682,186
520,218 1,161,268 1,681,486
541,915 1,137,345 1,679,260
571,164 1,134,768 1,705,932
592,557 1,084,373 1,676,930
19,776,450 12,443,149 32,219,599
$ 22,500,689 $ 18,144,704 $ 40,645,393
Interest
Interest paid or incurred during the year ended September 30, 2001, was $64,951 in the debt
service fund, and $1,204,865 in the enterprise funds. Of the amount incurred in the
enterprise funds, $199,367 was capitalized. In addition, interest earnings of $286,285 were
capitalized.
23
{;
NOTES TO FINANCIAL STATEMENTS
CITY OF ATLANTIC BEACH, FLORIDA
(Continued)
Note 7 - Defined Benefit Pension Plans
Plan Descriptions and Contribution Information
The Ciry maintains two separate single-employer pension plans, one for police officers and
one for general employees, which cover substantially all full-time City employees.
Membership of each plan consists of the following at September 30, 2000, the date of the
latest actuarial valuation:
Retirees and Beneficiaries Receiving Benefits
Terminated Plan Members Entitled to But Not
Yet Receiving Benefits
Active Plan Members
Total
General
Employees Police
26 8
11 3
71 27
108 38
General Employees' Retirement Plan
^ Plan Description -The General Employees' Retirement Plan provides retirement,
disability and death benefits to plan members and their beneficiaries. The City
Commission has the authority to establish and amend the benefit provisions of the plan.
^ Contributions -The City is required to contribute at an actuarially determined rate. Plan
members are required to contribute 2.0% of their annual covered salary. Contribution
requirements are established by City Code, which may be amended by the City
Commission. Administrative costs of the General Employees' Retirement Plan are funded
by a transfer from the City's general fund.
Police Retirement Plan
^ Plan Description -The Police Retirement Plan provides retirement, disability and death
benefits to plan members and their beneficiaries. The Police Retirement Plan is governed
by the Policemen's Pension Board of Trustees, although the City Commission retains the
authority to establish and amend the benefit provisions of the plan.
^ Contributions -Plan members are required to contribute 1.0% (4.815% for nonunion
participants) of their annual covered salary. The City is required to contribute at
actuarially determined rates, if State of Florida contributions are not sufficient. Per City
Code, the City Commission may amend established contribution requirements.
Administrative costs are funded by a transfer from the City's general fund.
24
NOTES TO FINANCIAL STATEMENTS
CITY OF ATLANTIC BEACH, FLORIDA
(Continued)
Note 7 - Defined Benefit Pension Plans (Concluded)
Annual Pension Costs and Net Pension Obligation
The City's annual pension cost and net pension obligation to the General Employees' and
Police Retirement Plans for the current year were as follows:
General
Employees Police
Annual Required Contribution (ARC) $ 266,148 $ 183,091
Interest on Net Pension Obligation 0 0
Adjustment to ARC 0 0
Annual Pension Cost 266,148 183,091
(Contributions Made) (266,148) (183,091)
Net Pension Obligation, End of Year $ 0 $ 0
Other Pension Plan Information
The annual required contributions for the current year were determined as part of the
September 30, 2000, actuarial valuations for the General Employees' and Police Retirement
Plans using the individual entry age actuarial cost method. The actuarial assumptions
include an 8.0% rate of return on investments and projected salary increases, which range
from 5.5 % to 11.8 % for both plans. The assumptions did not include postretirement benefit
increases.
The actuarial value of assets was determined using market value and a funding value
adjustment for both plans. The unfunded actuarial accrued liabilities are being amortized
over remaining amortization periods of 8 to 27 years.
Three-Year Trend Information
Fiscal Year Ended
Annual
Pension
Cost (APC)
Percentage
of APC
Contributed
Net
Pension
Obligation
General Employees
September 30, 1999 $ 257,597 100% $ 0
September 30, 2000 259,414 100% 0
September 30, 2001 266,148 100% 0
Police
September 30, 1999 $ 168,846 100% $ 0
September 30, 2000 179,988 100% 0
September 30, 2001 183,091 100% 0
25
NOTES TO FINANCIAL STATEMENTS
CITY OF ATLANTIC BEACH, FLORIDA
(Continued)
Note 8 - Interfund Transactions Reconciliation
A summary of interfund transfers during the fiscal year ended September 30, 2001, is as
follows:
Transfers Out
(~ General Fund
( General Fund
General Fund
General Fund
Total General Fund
Special Revenue Funds
~"' Local Option Gas Tax
t Pursuit Termination Grant
Total Special Revenue Funds
Enterprise Funds
C Utility Fund
Sanitation Fund
r-• Total Enterprise Funds
Trust Funds
Police Trust Fund
Police Pension Trust
Total Trust Funds
Total
Amount Fund Receiving Transfer
$ 147,292 Debt Service
24,591 Pension Trust
155,796 Internal Service
327,679
71,959 Debt Service
45 DUI Enforcement Grant
72,004
400,000 General Fund
200,000 General Fund
600,000
9,499 Special Revenue -Police Grants
11,630 General Fund
21,129
$ 1,020,812
A summary of interfund receivables/payables due from/to the general fund at September 30,
2001, is as follows: '
t Due From/To Special Revenue Funds
t Miscellaneous Grants
CDBG
Total
$ 9,516
40,722
$ 50,238
Note 9 - Changes in Contributed Capital
t.
Following is a summary of changes in contributed capital for the year ended September 30,
~' 2001:
Balance, October 1, 2000
Additions:
Water Improvements
Wastewater Improvements
(Amortization)
Balance, September 30, 2001
26
$ 6,748,937
139,158
257,146
(231,170)
$ 6,914,071
NOTES TO FINANCIAL STATEMENTS
CITY OF ATLANTIC BEACH, FLORIDA
(Continued)
Note 10 - Segment Information For Enterprise Funds
The City has established a utility enterprise fund to account for water, sewer, and
stormwater services, along with bond construction expenditures. In addition, the City
maintains a separate enterprise fund to account for sanitation services. Segment information
for the City's enterprise funds for the year ended September 30, 2001, is as follows:
Total
Utility Sanitation Enterprise
Fund Fund Funds
Operating Revenues $ 5,606,230 $ 1,174,334 $ 6,780,564
Depreciation 1,349,944 2,236 1,352,180
Operating (Loss) Income (1,532) 264,048 262,516
Nonoperating (Loss) Income (242,909) 28,495 (214,414)
Net Operating Transfers (Out) (400,000) (200,000) (600,000)
Net (Loss) Income (644,441) 92,543 (551,898)
Net Property, Plant and Equipment 27,695,365 6,575 27,701,940
Special Assessment Receivable -
Long-Term 327,908 0 327,908
Net Working Capital 5,635,238 581,950 6,217,188
Property, Plant and Equipment Additions 2,921,828 2,700 2,924,528
Long-Term Debt 21,523,181 0 21,523,181
Total Equity 20,164,255 588,525 20,752,780
Total Assets 43,538,728 654,360 44,193,088
Note 11 - Joint Venture
In 1985, pursuant to an interlocal agreement authorized by Section 163.01, Florida Statutes,
the City joined with the City of Jacksonville Beach, Florida, and the City of Neptune Beach,
Florida, to construct and operate effluent outfall lines and disposal facilities, together with
all the lands, right-of--ways, easements, and other entitlements necessary for the construction
and use thereof.
The construction of the outfall lines and disposal facilities were funded by the municipalities
in the following proportions:
Atlantic Beach 33.30%
Jacksonville Beach 50.00%
Neptune Beach 16.70%
Total 100.00%
27
r
NOTES TO FINANCIAL STATEMENTS
CITY OF ATLANTIC BEACH, FLORIDA
(Continued)
Note 11 - Joint Venture (Concluded)
Each city has recorded its share of the project in its own financial statements. The City
recorded its portion of the joint venture (approximately $290,000) in the property accounts
of the City's sewer fund. The City also recorded approximately $325,000 of additional
property purchased with grant proceeds from the Florida Department of Environmental
Protection since the grant for the outfall lines was awarded to the City. Therefore, the total
cost of the joint venture on the City's books is approximately $615,000. The project was
completed in 1986 and depreciation (using the straight-line method over 25 years) began in
1987.
The City provides all accounting and purchasing services for the joint venture. Repair and
maintenance of the outfall lines and disposal of the facilities will be shared by the
participating municipalities in the percentages noted above. During 2001, $84,800 was
expended related to this project.
Note 12 - Commitments
As of September 30, 2001, the City had outstanding commitments on contracts in progress
as follows:
Unexpended
Contract
Project Type Amounts
Water System Improvements $ 204,012
Wastewater System Improvements 1,316,711
Stormwater System Improvements 398,460
General Government Improvements 735,773
1 ~ The City is also required to maintain certain debt service coverage ratios in accordance with
bond resolutions. As of September 30, 2001, and during the year then ended , the Ciry was
in compliance with those ratios.
,.
Note 13 - Contingencies
The City is a defendant in several lawsuits which arose in the ordinary course of the City's
business. It is the City's position that the probability is unlikely that material amounts will
ever be payable as a result of these proceedings.
28
NOTES TO FINANCIAL STATEMENTS -
CITY OF ATLANTIC BEACH, FLORIDA
(Concluded)
Note 14 - Risk Management
The Ciry is exposed to various risks of loss related to torts; theft of, damage to and
destruction of assets; errors and omissions; and natural disasters for which the City carries
commercial insurance. Insurance against losses are provided through the Florida League of
Cities, Inc. and Risk Management Associates, Inc. for the following types of risk:
^ Workers' Compensation and Employer's Liability
^ Automobile Liability
^ Automobile Physical Damage
^ Accidental Death and Dismemberment
^ General Liability r-
^ Public Officials' Liability
^ Property Coverage
The City's coverage for workers' compensation is under a retrospectively rated policy.
Premiums are accrued based on the ultimate cost to-date of the City's experience for this
type of risk.
29
REQUIRED SUPPLEMENTARY INFORMATION
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF ATLANTIC BEACH, FLORIDA
SCHEDULES OF FUNDING PROGRESS
Employees' Retirement Plan****
(Dollar Amounts are in Thousands)
('A
(2) (3) (4) (~ (6) UAAL as
(1) Actuarial Entry Age Normal Unfunded Actuarial Funded Annual Percentage
Valuation Value of Actuarial Accrued Accrued Liability Ratio Covered of Payroll
Date Assets (AVA) Lability (AAL) (UAAL) (3)-(2) (2)1(3) Payroll (4)/(6)
9/30/94 S 4,549 S 6,061 S 1,512 75.1% S 3,068 49.39b
9/30195 5,546 7,200 1,654 77.0% 3,054 54.2%
9/30/96 6,517 8,290 1,773 78.6% 3,107 57.1%
9/30/97 • 7,435 9,275 1,840 80.2% 3,305 55.7%
9/30/98 •• 8,457 10,404 1,947 81.3% 3,609 53.9%
9/30/98'•• 7,127 9,144 2,017 77.9% 3,007 67.1%
General Employees' Retirement Plan
(Dollar Amounts are in Thousands)
(~
(2) (3) (4) (S) (6) UAAL as
(1) Actuarial Entry Age Normal Unfunded Actuarial Funded Annual Percentage
Valuation Value of Actuarial Accrued Accrued Liability Ratio Covered of Payroll
Nate Assets (AVA) Liability (AAL) (UAAL) (3)-(2) (2)/(3) Payroll (4)/(~
9/30/99 S 4,650 S 5,796 S 1,146 80.2% S 2,185 52.4%
9/30/00 5,229 6,462 1,233 80.9% 2,330 52.9%
Police Retirement Plan
(Dollar Amounts are in Thousands)
rn
(1) (3) (4) (S) (6) UAAL as
(1) Actuarial Entry. Age Normal Unfunded Actuarial Funded Annual Percentage
Valuation Value of Actuarial Accrued Accrued Liability Ratio Covered of Payroll
Date Assets (AVA) Liability (AAL) (UAAL) (3)-(2) (2)/(3) Payroll (4)/(~
9/30/99 S 3,393 S 4,089 S 696 83.0% S 1,018 68.4%
9130/00 3,791 4,615 824 82.1% 1,213 67.9%
* The actuarial value of assets used before plan year September 30, 1997, was at market value; the asset
method used after that date was the funding value.
** Including fire fighters.
*** Excluding fire fighters.
**** Prior to creation of separate pension plans for police and general employees.
Analysis of the dollar amounts of actuarial value of assets, actuarial accrued liability, or unfunded actuarial
accrued liability in isolation can be misleading. Expressing the actuarial value of assets as a percentage of
the actuarial accrued liability provides one indication of the system's funded status on a going concern basis.
Analysis of this percentage over time indicates whether the system is becoming financially stronger or
r weaker. Generally, the greater this percentage, the stronger the plan. The unfunded actuarial accrued
l liability and annual covered payroll are both affected by inflation. Expressing the unfunded actuarial accrued
liability as a percentage of covered payroll approximately adjusts for the effects of inflation and aids analysis
(~' of the progress being made in accumulating sufficient assets to pay benefits when due. Generally, the
smaller this percentage, the stronger the plan.
30
r
I
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF ATLANTIC BEACH, FLORIDA
SCHEDULES OF CONTRIBUTIONS FROM EMPLOYER AND OTHERS
Employees' Retirement Plan*
Annual
Year Required
Ended Contributed Percentage
9/30 (ARC) Contributed
1999 $ 460, 819 104
1998 441,972 109%
1997 419,766 105
1996 420,591 100%
1995 326,284 100%
1994 271,518 101%
General Employees' Retirement Plan
Annual
Year Required
Ended Contributed Percentage
9130 (ARC) Contributed
2001 $ 266,148 100%
2000 259,414 100
Police Retirement Plan
Annual
Year Required
Ended Contributed Percentage
9/30 (ARC) Contributed
2001 $ 183,091 100%
2000 179,988 100
* Prior to creation of separate pension plans for police and general employees.
The information presented in the required supplementary schedules was determined as part of the actuarial
valuation at the dates indicated. Additional information for the general employees' and police retirement
plans as of the latest actuarial valuation follows:
Valuation Date
Actuarial Cost Method
Amortization Method
Remaining Amortization Period
Asset Valuation Method
Actuarial Assumptions
Investment Rate of Return
Projected Salary Increases
Inflation
September 30, 2000
Entry Age Actuarial Cost Method
Level Percent of Payroll, Closed
8 to 27 Years
Market Value Through September 30, 1997, and Funding
Value After September 30, 1997
8.00
0% to 6.30%
5.50%
31
r
r
r
COMBINIIVG AND INDIVIDUAL FUND STATEMENTS
AND SCHEDULES
Combining financial statements provide a more detailed view of the "general-purpose financial statements"
presented in the preceding subsection.
Individual statements and schedules, although not necessary for a fair presentation in conformity with
generally accepted accounting principles, are presented to provide greater detail and comparative financial
information for certain fund types.
1.
. SCHEDULE OF EXPENDITURES
BUDGET AND ACTUAL
GENERAL FUND
~- FOR THE YEAR ENDED SEPTEMBER 30, 2001,
.i WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000
CITY OF ATLANTIC BEACH, FLORIDA
r
Expenditures
~~ General Government
Legislative:
Personal Services
~ Operating Expenses
Total Legislative
Legal Counsel:
Personal Services
Operating Expenses
Total Legal Counsel
Planning and Zoning:
Personal Services
Operating Expenses
r Total Planning and Zoning
City Clerk:
Personal Services
~' Operating Expenses
~, Capital Outlay
Total City Clerk
Other General Government:
Personal Services
Operating Expenses
r Capital Outlay
Total Other General Government
1 Total General Government
~" Public Safety
Law Enforcement:
Personal Services
Operating Expenses
Capital Outlay
Total Law Enforcement
2001
Variance
Favorable
Budget Actual (Unfavorable)
~~
Lifeguards:
Personal Services
1 Operating Expenses
Capital Outlay
Total Lifeguards
r
~,
$ 36,732 $ 37,730 $ (998) $ 19,208
9,657 7,491 2,166 3,427
46,389 45,221 1,168 22,635
10,870 10,619 251 9,058
108,000 98,949 9,051 46,694
118,870 109,568 9,302 55,752
85,675 78,113 7,562 81,621
16,893 15,566 1,327 13,258
102,568 93,679 8,889 94,879
122,518 117,571 4,947 110,667
57,026 43,196 13,830 48,743 .
3,295 4,251 (956) 4,973
182,839 165,018 17,821 164,383
0 0 0 80,142
218,219 186,398 31,821 146,671
29,480 25,648. 3,832 19,870
247,699 212,046 35,653 246,683
698,365 625,532 72,833 584,332
1,895,924 1,846,697 49,227 1,787,217
408,709 381,475 27,234 442,248
45,581 46,631 (1,050) 49,842
2,350,214 2,274,803 75,411 2,279,307
111,093 111,270 (177) 106,350
30,647 26,022 4,625 17,789
2,370 0 2,370 0
144,110 137,292 6,818 124,139
32
r
SCHEDULE OF EXPENDITURES
BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2001,
WITH C OMPARATIVE TOTALS FOR SEPTEMBER 30, 2000
CITY OF ATLANTIC BEACH, FLORIDA
(Concluded)
2001 2000
Variance .--_
Favorable
Budget Actual (Unfavorable) Actual
Expenditures (Concluded)
Public Safety (Concluded)
Fire Control:
Personal Services $ 9,625 $ 10,776 $ (1,151) $ 10,544 _
Operating Expenses 754,116 760,643 (6,527) 743,271
Capital Outlay 0 0 0 0
Total Fire Control 763,741 771,419 (7,678) 753,815
Animal Control:
Personal Services 59,422 58,992. 430 54,579 -
Operating Expenses 23,320 19,315 4,005 16,366
Capital Outlay 4,624 4,524 100 0 -
Total Animal Control 87,366 82,831 4,535 70,945
Code Enforcement:
Personal Services 41,223 39,052 2,171 46,056
Operating Expenses 19,842 13,926 5,916 18,964
Capital Outlay 2,000 1,953 47 0
Total Code Enforcement 63,065 54,931 8,134 65,020 ,
Building Inspections:
Personal Services 181,045 160,546 20,499 92,501
Operating Expenses 78,528 72,009 6,519 72,676
Capital Outlay 22,015 18,427 3,588 1,968
Total Building Inspections 281,588 250,982 30,606 167,145
Total Public Safety 3,690,084 3,572,258 117,826 3,460,371
Transportation
Personal Services 226,125 231,641 (5,516) 350,507
Operating Expenses 416,797 423,625 (6,828) 548,335 ._
Capital Outlay 73,952 71,973 1,979 180,820
Grants and Aids 0 0 0 3,000
Total Transportation 716,874 727,239 (10,365) 1,082,662
Culture/Recreation
Parks and Recreations:
Personal Services 378,587 303,112 75,475 193,293 ,_
Operating Expenses 413,089 391,444 21,645 260,777
Capital Outlay 543,500 283,433 260,067 0
Grants and Aids 59,550 50,685 8,865 16,047
Total Culture/Recreation 1,394,726 1,028,674 366,052 470,117 .-
Total Expenditures $ 6,500,049 $ 5,953,703 $ 546,346 $ 5,597,482
33
SPECIAL REVENUE FUNDS
Assets
Cash and Cash Equivalents
Due From Other Governments
Total Assets
Liabilities and Fund Balances
Liabilities
Accounts Payable
Due to Other Funds
Deferred Revenue
Total Liabilities
Fund Balances
Reserved For Roads and Street Expenditures
Reserved For Tourism and Recreation
Reserved For Tree Replacement
Reserved For Public Safety
Total Fund Balances
Total Liabilities and Fund Balances
COMBINING BALANCE SHEET
SPECIAL REVENUE FUNDS
SEPTEMBER 30, 2001,
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000
CITY OF ATLANTIC BEACH, FLORIDA
Page 1 of Z Pages
Tree Local Option Miscellaneous
Replacement Gas Tax Grants
2001 2000 2001 2000 2001 2000
$ 3,166 $ 22,955 $1,792,721 $1,385,114 $ 100 $ 500
0 0 41,000 42,056 40,884 68,451
3,166 22,955 1,833,721 1,427,170 40,984 68,951
0 946 15,132 0 0 0
0 0 0 0 40,722 68,289
0 0 0 0 0 0
0 946 15,132 0 40,722 68,289
0 0 1,818,589 1,427,170 262 162
0 0 0 0 0 500
3,166 22,009 0 0 0 0
0 0 0 0 0 0
3,166 22,009 1,818,589 1,427,170 262 662
$ 3,166 $ 22,955 $1,833,721 $1,427,170 $ 40,984 $ 68,951
34
COMBINING BALANCE SHEET
SPECIAL REVENUE FUNDS
SEPTEMBER 30, 2001,
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000
CITY OF ATLANTIC BEACH, FLORIDA Page 2 of 2 Pages
Assets
Cash and Cash Equivalents
Due From Other Governments
Total Assets
Liabilities and Fund Balances
Liabilities
Accounts Payable
Due to Other Funds
Deferred Revenue
Total Liabilities
Fund Balances
Reserved For Roads and Street Expenditures
Reserved For Tourism and Recreation
Reserved For Tree Replacement
Reserved For Public Safety
Total Fund Balances
Total Liabilities and Fund Balances
Convention Half-Cent
Development Tax Sales Tax Police Grants Totals
2001 2000 2001 2000 2001 2000 2001 2000
$ 121,705 $ 45,360 $ 298,250 $ 0 $ 17,948 $ 45 $ 2,233,890 $ 1,453,974
6,559 1,790 50,971 0 10,044 34,820 149,458 147,117
128,264 47,150 349,221 0 27,992 $ 34,865 2,383,348 1,601,091
0 0 0 0 529 1,478 15,661 2,424
0 0 0 0 9,516 30,554 50,238 98,843
0 0 0 0 10,000 0 10,000 0
0 0 0 0 20,045 32,032 75,899 101,267
0 0 349,221 0 0 0 2,168,072 1,427,332
128,264 47,150 0 0 0 0 128,264 47,650
0 0 0 0 0 0 3,166 22,009
0 0 0 0 7,947 2,833 7,947 2,833
128,264 47,150 349,221 0 7,947 2,833 2,307,449 1,499,824
$ 128,264 $ 47,150 $ 349,221 $ 0 $ 27,992 $ 34,865 $ 2,383,348 $ 1,601,091
35
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2001,
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000
CITY OF ATLANTIC BEACH, FLORIDA
Revenues
Taxes
Intergovernmental Revenues:
Federal Grants
State Grants
Miscellaneous
Interest Income
Total Revenues
Expenditures
General Government
Public Safety
Transportation
(ToWI Expenditures)
(Deficiency) Excess of Revenues (Under) Over Expenditures
Other Financing Sources (Uses)
Operating Transfers In
Operating Transfers Out
Total Other Financing Sources (Uses)
(Deficiency) Excess of Revenues and Other Financing Sources
(Under) Over Expenditures and Other Financing Uses
Fund Balances -Beginning of Year
Fund Balances -End of Year
Page 1 of 2 Pages
Tree Local Option Miscellaneous
Replacement Gas Tax Grants
2001 2000 2001 2000 2001 2000
$ 0 $ 0 $ 490,057 $ 481,274 $ 0 $ 0
0 0 0 0 318,764 75,028
0 0 0 0 0 0
1,939 4,392 0 0 3,150 0
0 0 79,137 80,839 0 0
1,939 4,392 569,194 562,113 321,914 75,028
20,782 4,686 0 0 322,314 74,866
0 0 0 0 0 0
0 0 105,816 307,089 0 0
(20,782) (4,686) (105,816) (307,089) (322,314) (74,866)
(18,843) (294) 463,378 255,024 (400) 162
0 0 0 0 0 500
0 0 (71,959) (84,114) 0 0
0 0 (71,959) (84,114) 0 500
(18,843) (294) 391,419 170,910 (400) 662
22,009 22,303 1,427,170 1,256,260 662 0
$ 3,166 $ 22,009 $ 1,818,589 $ 1,427,170 $ 262 $ 662
36
T I T ~ ~ ~ f f~ i I I f
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2001,
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000
CITY OF ATLANTIC BEACH, FLORIDA Page 2 of 2 Pages
Revenues
Taxes
Intergovernmental Revenues:
Federal Grants
State Grants
Miscellaneous
Interest Income
Total Revenues
Expenditures
General Government
Public Safety
Transportation
(Total Expenditures)
(Deficiency) Excess of Revenues (Under) Over Expenditures
Other Financing Sources ([Tses)
Operating Transfers In
Operating Transfers Out
Total Other Financing Sources (Uses)
(Deficiency) Excess of Revenues and Other Financing Sources
(Under) Over Expenditures and Other Financing Uses
Fund Balances -Beginning of Year
Fund Balances -End of Year
Convention Half-Cent
Development Tax Sales Tax Police Grants Totals
2001 2000 2001 2000 2001 2000 2001. 2000
$ 80,667 $ 54,744 $ 346,052 $ 0 $ 0 $ 0 $ 916,776 $ 536,018
0 0 0 0 11,720 20,940 330,484 95,968
0 0 0 0 34,027 30,840 34,027 30,840
0 0 0 0 0 0 5,089 4,392
3,737 4,667 3,169 0 159 44 86,202 85,550
84,404 59,411 349,221 0 45,906 51,824 1,372,578 752,768
3,290 1,000 0 0 0 0 346,386 80,552
0 0 0 0 50,291 64,246 50,291 64,246
0 0 0 0 0 0 105,816 307,089
(3,290) (1,000) 0 0 (50,291) (64,246) (502,493) (451,887)
81,114 58,411 349,221 0 (4,385) (12,422) 870,085 300,881
0 0 0 0 9,544 6,125 9,544 6,625
0 (158,808) 0 0 (45) (1,540) (72,004) (244,462)
0 (158,808) 0 0 9,499 4,585 (62,460) (237,837)
81,114 (100,397) 349,221 0 5,114 (7,837) 807,625 63,044
47,150 147,547 0 0 2,833 10,670 1,499,824 1,436,780
$ 128,264 $ 47,150 $ 349,221 $ 0 $ 7,947 $ 2,833 $ 2,307,449 $ 1,499,824
37
PROPRIETARY FUND TYPES -
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
PROPRIETARY FUND TYPES -ENTERPRISE FUNDS
SEPTEMBER 30, 2001,
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000
CITY OF ATLANTIC BEACH, FLORIDA Page 1 of 3 Pages
Assets
Cash and Cash Equivalenu
Accounu Receivable
Due From Other Governmenu
Inventories
Special Assessment Receivable -Current
Note Receivable -Current
Other current Asseu
Restricted Asseu:
Cash and Cash Equivalenu
Interest Receivable
Construction in Progress
Property, Plant and Equipment -Net
Special Assessment Receivable -Long-Term
Note Receivable -Long-Term
Arbitrage Rebate
Unamortized Loan Cosu
Total Assets
Liabilities and Fund Equity
Liabilities
Current Liabilities (Payable From Current Asseu):
Accounu Payable and Accrued Liabilities
Customer Deposiu
Deferred Revenue
Accrued Compensated Absence
Current Liabilities (Payable From Restricted Asseu):
Accounu Payable
Interest Payable
Revenue Donds Payable -Current Portion
Arbitrage Liability
Revenue Bonds Payable
Total Liabilities
Fund Equity
Contributed Capital
Retained Earnings:
Reserved For Renewai and Replacement
Reserved For Debt Service
Unreserved
Total Fund Equity
Total Liabilities and Fund Equity
Water System Sewer System
2001 2000 2001 2000
~ 2,002,163 S 1,806,220 S 3,758,334 S 3,643,589
131,144 128,800 185,983 184,694
0 0 0 350,000
0 18,300 5,761 39,230
25,000 23,000 39,500 52,000
0 0 10,362 10,362
10,000 8,665 13,661 16,678
470,794 468,268 922,606 915,218
0 0 0
19,163 705,698 523,937 686,934
8,182,302 6,589,935 17,864,170 14,413,835
111,480 145,258 216,428 243,641
0 0 56,992 67,354
0 0 18,800 0
97,902 102,385 255,562 267,084
11,049,948 9,996,529 23,872,096 20,890,619
57,468 32,050 65,924 122,180
394,604 300,570 0 0
13,086 52,408 68,659 0
26,532 23,907 57,176 43,769
0 0 0 0
116,500 118,545 368,803 374,909
108,047 103,331 308,948 295,255
0 0 0 0
4,326,612 4,428,119 13,411,221 13,699,924
5,042,849 5,058,930 14,280,731 14,536,037
1,685,175 1,620,321 5,203,896 5,103,616
250,000 250,000 250,000 250,000
220,794 218,268 672,606 665,218
3,851,130 2,849,010 3,464,863 335,748
6,007,099 4,937,599 9,591,365 6,354,582
11,049,948 9,996,529 S 23,872,096 3 20,890,619
38
COMBINING BALANCE SHEET
PROPRIETARY FUND TYPES -ENTERPRISE FUNDS
SEPTEMBER 30, 2001,
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000
CITY OF ATLANTIC BEACH, FLORIDA Page 2 of 3 Pages
Stormwater System Bond Construction Account Total Utility Fund
2001 2000 2001 2000 2001 2000
Assets
Cash and Cash Equivalents S 163,047 S 639,010 S O S O S 5,923,544 S 6,088,819
Accounts Receivable 3,814 3,540 0 0 320,941 317
034
Due From Other Governments 0 25,000 0 0 0 ,
375,000
Inventories 0 0 0 0 5,761 57
530
Special Assessment Receivable - Curnnt 0 0 0 0 64,500 ,
75
000
Note Receivable -Current 0 0 0 0 10,362 ,
10
362
Other Current Assets 0 0 0 0 23,661 ,
25,343
Restricted Assets:
Cash and Cash Equivalents 187,206 185,220 5,144,757 6,342,113 6,725,363 7,910,819
Interest Receivable 0 0 0 188,872 0 188
872
Construction in Progress 129,724 328,218 1,273,095 4,805,687 1,945,919 ,
6,526,537
Property, Plant and Equipment -Net 1,648,893 658,106 0 0 27,695,365 21,661
876
Special Assessment Receivable -Long-Term 0 0 0 0 327,908 ,
388,899
Note Receivable -Long-Term 0 0 0 0 56,992 67
354
Arbitrage Rebate 0 0 0 0 18,800 ,
0
Unamortized Loan Costs 66,148 69,083 0 0 419,612 438
552
Total Assets 2,198,832 1,908,177 6,417,852 11,336,672 43,538,728 ,
44,131
997
Liabilities and Fund Equity ,
Liabilities
Current Liabilities (Payable From Current Assets):
Accounts Payable and Accrued Liabilities 30,082 0 0 0 153,474 154,230
Customer Deposits 0 0 0 0 394,604 300
570
Deferred Revenue 0 0 0 0 81,745 ,
52,408
Accrued Compensated Absences 0 0 0 0 83,708 67
676
Current Liabilities (Payable From Restricted Assets): ,
Accounts Payable 0 0 48,257 63,018 48,257 63
018
Interest Payable 105,816 107,487 0 0 591,119 ,
600,941
Revenue Bonds Payable - Curnnt Portion 81,390 77.732 0 0 498,385 476,318
Arbitrage Liability 0 0 0 15,371 0 15,371
Revenue Bonds Payable 3,785,348 3,861,030 0 0 21,523,181 21,989
073
Total Liabilities 4,002,636 4,046,249 48,257 78,389 23,374,473 ,
23,719
605
Fund Equity ,
Contributed Capital 25,000 25,000 0 0 6,914,071 6,748
937
Retained Earnings: ,
Reserved For Renewal and Replacement 0 0 0 0 500,000 500
000
Reserved For Debt Service 187,206 185,220 0 0 1,080,606 ,
1,068
706
Unreserved (2,016,010) (2,348,292) 6,369,595 11,258,283 11,669,578 ,
12,094
749
Total Fund Equity (1,803,804) (2,138,072) 6,369,595 11,258,283 20,164,255 ,
20,412
392
Total Liabilities and Fund Equity S 2,198.832 1,908,177 6,417,852 S ,
11,336,672 43,538,728 44,131,997
39
COMBINING BALANCE SHEET
PROPRIETARY FUND TYPES -ENTERPRISE FUNDS
SEPTEMBER 30, 2001,
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000
CITY OF ATLANTIC BEACH, FLORIDA Page 3 of 3 Pages
Sanitation Fund Totals
2001 2000 2001 2000
Assets
Cash and Cash Equivalents
Accounts Receivable
Due From Other Governments
Inventories
Special Assessment Receivable -Current
Note Receivable - Curcent
Other Current Assets
Restricted Assets:
Cash and Cash Equivalents
Interest Receivable
Construction-in-Progress
Property, Plant and Equipment -Net
Special Assessment Receivable • Long-Term
Note Receivable -Long-Term
Arbitrage Rebate
Unamortized Loan Costs
Total Assets
Liabilities and Fund Equity
Liabilities
Current Liabilities (Payable From Current Assets):
Accounts Payable and Accrued Liabilities
Customer Deposits
Deferred Revenue
Accrued Compensated Absences
Curcent Liabilities (Payable From Restricted Assets):
Accounts Payable
Interest Payable
Revenue Bonds Payable -Current Portion
Arbitrage Liability
Revenue Bonds Payabte
Total Liabilities
Fund Equity
Contributed Capital
Retained Earnings:
Reserved For Renewal and Replacement
Reserved For Debt Service
Unreserved
Total Fund Equity
Total Liabilities and Fund Equity
S 630,555 S 474,894 S 6,554,099 S 6,563,713-
17,230 15,102 338,171 332,136
0 0 0 375,000
0 0 5,761 57,530
0 0 64,500 75,000
0 0 10,362 10,362
0 0 23,661 25,343
0 0 6,725,363 7,910,819
0 0 0 188,872
0 0 1,945,919 6,526,537
6,575 6,111 27,701,940 21,667,987
0 0 327,908 388,899
0 0 56,992 67,354
0 0 18,800 0
0 0 419,612 438,552
654,360 496,107 44,193,088 44,628,104
65,835 125 219,309 154,355
0 0 394,604 300,570
0 0 81,745 52,408
0 0 83,708 67,676
0 0 48,257 .63,018
0 0 591,119 600,941
0 0 498,385 476,318
0 0 0 15,371
0 0 21,523,181 21,989,073
65,835 125 23,440,308 23,719,730
0 0 6,914,071 6,748,937
0 0 500,000 500,000
0 0 1,080,606 1,068,706
588,525 495,982 12,258,103 12,590,731
588,525 495,982 20,752,780 20,908,374
3 654,360 S 496,107 44,193,088 44,628,104
40
1 f 1
~ - i ~ I- >~ I ~ I I ~ I. I
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
PROPRIETARY FUND TYPES -ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2001, WITH
COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000
CITY OF ATLANTIC BEACH, FLORIDA Page 1 of 3 Pages
Water System Sewer Syst em
2001 2000 2001 2000
Operating Revenues
Customer Charges S 1,831,038 S 1,775,381 S 3,187,825 S 3,031,393
Other Income 231,298 363,435 54,850 34,021
Total Operating Revenues 2,062,336 2,138,816 3,242,675 3,065,414
Operating Expenses
Personal Services 446,168 468,024 569,694 566,176
Contractual Services 336,810 210,800 691,909 544,736
Supplies 138,422 167,126 156,707 111,446
Repairs and Maintenance 56,258
~ 64,450 103,520 57,145
Heat, Light and Power 74,246 78,835 314,569 294,723
Depreciarion 442,536 408,855 848,914 763,751
Other Expenses 381,287 488,616 702,681 603,298
(Total Operating Expenses) (1,875,727) (1,886,70 (3,387,994) (2,941,27
Operating Income (Loss) 186,609 252,110 (145,319) 124,139
Nonoperating Income (Expense)
Connection Charges 82,129 59,634 170,433 128,152
Sewer Generation Charges 0 0 137,965 135,465
Interest Income 123,274 135,249 236,332 277,093"
(Interest Expense) (199,190
)
(224,940)
(675,041)
(539,817)
(Amortization of Loan Costs) (4,627) (4,483) (11.991) (11,523)
Total Nonoperating income (Expense) 1,586 (34,540) (142,302) (10,630)
Net Income (boss) Before Transfers 188,195 217,570
(287,621)
113,509
Other Financing Sources (Uses)
Operating Transfers In 0 5,915 0 21,312
Operaring Transfers Out (140,000
)
(215,60
)
)
(209,33
7)
Capital Transfers In 900,15 0 3 617,471 0
Capital Transfers Out (18,003) (35,269) (90,213) (239,012)
Total Other Financing Sources (Uses) 742,147 (244,959) 3,267.258 (427,037)
Net Income (Loss) 930,342 (27,389) 2,979,637 (313,528)
Deprectatlon on Fixed Assets Acquired By
Shared Revenues Externally Restricted
For Capital Acquisitiotu 74,304 73,255 156,866 159,110
Increase (Decrease)tn Retained Earnings 1,004,646 45,866 3,136,503 (154,418)
Retained Earnings (Deficit), Beginning of Year 3,317,278 3,271,412 1,250,966 1,405,384
Retained Earnings (Deficit), End of Year 3 4,321,924 S 3,317,278 3 4,387,469 1,250,966
41
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
PROPRIETARY FUND TYPES -ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2001, WITH
COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000
CITY OF ATLANTIC BEACH, FLORIDA Page 2 of 3 Pages
Operating Revenues
Customer Charges
Other Income
Total Operating Revenues
Operating Expenses
Personal Services
Contractual Services
Supplies
Repairs and Maintenance
Heat, Light and Power
Depreciation
Other Expenses
(Total Operating Expenses)
Operating Income (Loss)
Nonoperating Income (Expense)
Connection Charges
Sewer Generation Charges
Interest Income
(Interest Expense)
(Amortization of Loan Costs)
Total Nonoperating Income (Expense)
Net Income (Loss) Before Transfers
Other Financing Sources (Uses)
Operating Transfers In
Operating Transfers Out
Capital Transfers In
Capital Transfers Out
Total Other Financing Sources (Uses)
Net Income (Loss)
Depreciation on Fixed Assets Acquired By
Shared Revenues Externally Restricted
For Capital AcquLsitions
Increase (Decrease)In Retained Earnings
Retained Earnings (Deficit), Beginning of Year
Retained Earnings (Deficit), End of Year
Stormwater System Bond Construction Account Total Utility Fund
2001 2000 2001 2000 2001 2000
$ 268,383 $ 246,975 $ 0 $ 0 $ 5,287,246 $ 5,053,749
32,836 0 0 0 318,984 397,456
301,219 246,975 0 0 5,606,230 5,451,205
106,742 0 0 0 1,122,604 1,034,200
102,278 4,250 0 0 1,130,997 759,786
27,815 0 0 0 322,944 278.572
9,340 0 0 0 169,118 121,595
0 0 0 0 388,815 373,558
58,494 50,250 0 0 1,349,944 1,222,856
39,372 2,533 0 0 1,123,340 1,094,447
(344,041) (57,033) 0 0 (5,607,762) (4,885,014)
(42,822) 189,942 0 0 (1,532) 566,191
0 0 0 0 252,562 187,786
0 0 0 0 137,965 135,465
27,071 53,022 0 0 386,677 465,364
(126,192) (23,896) 0 0 (1,000,423) (788,653)
(3,072) (2,934) 0 0 (19,690) (18,940)
(102,193) 26,192 0 0 (242,909) (18,978)
(145,015) 216,134 0 0 (244,441) 547,213
0 0 0 0 0 27,227
0 (1,015) 0 0 (400,000) (425,957)
570,433 0 199,367 471,310 5,287,421 471,310
(91,150) (197,029) (5,088,055) 0 (5,287,421) (471,310)
479,283 (198,044) (4,888,688) 471,310 (400,000) (398,730)
334,268 18,090 (4,888,688) 471,310 (644,441) 148,483
0 0 0 0 231,170 232,365
334,268 18,090 (4,888,688) 471,310 (413,271) 380,848
(2,163,072) (2,181,162) 11,258,283 10,786,973 13,663,455 13,282,607
$ (1,828,804) $ (2,163,072) $ 6,369,595 $ 11,258,283 13,250,184 13,663,455
42
i } } } ~ r ' l
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
PROPRIETARY FUND TYPES -ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2001, WITH
COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30 , 2000
CITY OF ATLANTIC BEACH, FLORIDA Page 3 of 3 Pages
Sanitation Fuad Totals
2001 2000 2001 2000
Operating Revenues
Customer Charges S 1,171,305 S 1,148,412 S 6,458,551 S 6
202
161
Other Income 3,029 19,736 322,013 ,
,
417
192
Tota! Operating Revenues 1,174,334 1,168,148 6,780,564 ,
6
619
353
Operating Expenses ,
,
Personal Services 4,853 4,108 1,127,457 1,038
308
Contractual Services 795,252 753,983 1,926,249 ,
1,513,769
Supplies
Repairs and Maintenance 0 0 322,944 278,572
Heat, Light and Power 0
~ 0 0 169,118 121,595
Depreciation 0 388,815 373,558
Other Expenses 2,236 2,331 1,352,180 1,225,187
(Total Operating Expenses) 107,945 108,794 1,231,285 1,203,241
Operating Income (Loss) (910,286) (869,216) (6,518,048) (5,754,230)
Nonoperating Income (Expense) 264,048 298,932 262,516 865,123
,_
Connection Charges 0 0 252,562 187
786
Sewer Generation Charges 0 0 137,965 ,
135
465
Interest Income
28,495
29,141
415,172 ,
494,505
(Intemt Expense) 0 0 (1,000,423) (788,653)
(Amortization of Loan Costs) 0 0 (19,690) (18,940)
Total Nonoperating Income (Expense) 28,495 29,141 (214,414) 10
163
Net Income (Loss) Before Transfers 292,543 328,073 48,102 ,
875
286
Other Financing Sources (Uses) ,
,
Operating Transfers In 0 0 0 27
227
Operating Transfers Out
(200,000)
(228,551)
(600,000) ,
(654,508)
Capital Transfers In 0 0 5,287,421 471
310
Capital Transfers Out 0 0 (5,287,421) ,
(471.310)
Total Other Financing Saurces (Uses) (200,000) (228,551) (600,000) (627
281)
Net Income (Loss) 92,543 99,522 (551,898) ,
248
005
Depreciation on Fund Assets Acquired By ,
Shared Revenues Externally Restricted
For Capital Acquisitions 0 0 231,170 232
365
Increase (Decrease)in Retained Earnings 92,543 99,522 (320,728) ,
480
370
Retained Earnings (Deficit), Beginning of Year 495,982 396,460 14,159,437 ,
13,679
067
Retained Earnings (Deficit), End of Year S 588,525 3 ,
495,982 13,838,709 14,159,437
43
COMBII~IING STATEMENT OF CASH FLOWS
PROPRIETARY FUND TYPES -ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2001, WITH
COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000
CITY OF ATLANTIC BEACH, FLORIDA
Cash Flows From Operating Activities
Operating Income (Loss)
Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided By (Used In) Operating Activities:
Depreciarion and Amortization
Loss on Disposals
Changes in Assets - (Increase) Decrease:
Accounts Receivable
Due From Other Governments
Inventory
Changes in Liabilities -Increase (Decrease):
Accounts Payable and Accrued Liabilities
Customer Deposits
Deferred Revenue
Net Cash Provided By (Used In) Operating Activities
Cash Flows From Noncapital Furancing Activities
Connection Charges
Sewer Generation Charges
(Operating Transfers Out to Other Funds)
Operating Transfers In From Other Funds
Net Cash (Used In) Provided By Noncapital FInanctng Activities
Cash Flows From Capital and Related F'mancing Activities
Change in Interest Receivable
Collections on Note Receivable
Collections on Special Assessments
(Property, Plant and Equipment Additions)
Contributed Capital
(Principal Payments on Bonds and Note Payable)
(Interest Paid, Net of Capitalized Interest)
Capital Transfers In
(Capital Transfers Out)
Net Cash (Used In) Provided By Capital and Related
F'urancing Activities
Cash Flows From Investing Activities
Interest Income
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents, Beginning of Year
Cash and Cash Equivalents, End of Year
44
Page 1 of 6 Pages
Water System Sewer System
2001 2000 2001 2000
S 186,609 S 252,110 3 (145,319) 3 124,139
447,163 413,338 860,905 775,274
42,954 0 94,147 0
(2,344) 59,088 (1,289) (576)
0 0 350,000 (350,000)
18,300 13,309 33,469 (20,830)
28,043 (98,385) (42,849) (194,180)
94,034 1,223 0 0
(39,322) (43,529) 68,659 0
775,437 597,154 1,217,723 333,827
82,129 59,634 170,433 128,152
0 0 137,965 135,465
(140,000) (215,605) (260,000) (209,337)
0 5,915 0 21,312
(57,871) (150,056) 48,398 75,592
(1,335) 12,827 (3,017) 12,566
0 0 10,362 10,363
31,778 23,105 39,713 51,870
(1,389,553) (674,038) (4,216,579) (717,567)
139,158 0 257,145 408,731
(103,331) (105,766) (295,255) (293,171)
(201,235) (226,949) (681,147) (545,619)
900,150 0 3,617,471 0
(18,003) (35,269) (90,213) (239,012)
(642,371) (1,006,090) (1,361,520] (1,311,8341
123,274 135,249 217,532 277,093
198,469 (423,743) 122,133 (625,327)
2,274,488 2,698,231 4,558,807 5,184,134
2,472,957 2,274,488 3 4,680,940 4,558,807
i ~ ~ I ~ I I t f
~ '.~ ,_'] '_l _~1 ..~} ~ .~ .~~ ...~..? ~`-~ `-~'i "1 ~~:-.~ -_~ ..._.._T ..._.~ `mi`l "1
COMBINING STATEMENT OF CASH FLOWS
PROPRIETARY FUND TYPES -ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2001, WITH
COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000
CITY OF ATLANTIC BEACH, FLORIDA Page 2 of 6 Pages
Cash Flows From Operating Acttvities
Operating Income (Loss)
Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided By (Used In) Operating Activities:
Depreciation and Amortization
Loss on Disposals
Changes in Assets - (Increase) Decrease:
Accounts Receivable
Due From Other Governments
Inventory
Changes in Liabilities -Increase (Decrease):
Accounts Payable and Accrued Liabilities
Customer Deposits
Defernd Revenue
Net Cash Provided By (Used In) Operating Activities
Cash Flows From Noncapita] Financing Activities
Connection Charges
Sewer Generation Charges
(Operating Transfers Out to Other Funds)
Operating Transfers In From Other Funds
Net Cash (Used In) Provided By Noncapita] Financing Activities
Cash Flows From Capital and Related Financing AMivities
Change in Interest Receivable
Collections on Note Receivable
Collections on Special Assessments
(Property, Plant and Equipment Additions)
Contributed Capital
(Principal Payments on Bonds and Note Payable)
(Interest Paid, Net of Capitalized Interest)
Capital Transfers In
(Capital Transfers Out)
Net Cash (Used In) Provided By Capital and Related
Financing Activities
Cash Flows From Investing Activities
Interest Income
Net Imrease (Decrease) In Cash and Cash Equivalents
Cash and Cash Equfvalerrts, Beginning of Year
Cash and Cash Equivalents, End of Year
Stormwater System Bond Construct[on Account Total Utility Fund
2001 2000 2001 2000 2001 2000
S (42,822) E 189,942 S 0 3 0 3 (1,332) S 366,191
61,366 33,184 0 0 1,369,634 1,241.796
0 0 0 0 137,101 0
(274) 2,017 0 0 (3,907) 60,529
. 25,000 (23,000) 0 0 373,000 (373,000)
0 0 0 0 51,769 (7,521)
30,082 (2,698) (30,132) (173,067) (14,836) (468,330)
0 0 0 0 94,034 1.223
0 0 0 0 29,337 (43,529): ~_
73,332 217,443 (30,132) (173,067) 2,036,380 973,339 ':
0 0 0 0 232,362 187.786
0 0 0 0 137,963 133,463
0 (1,013) 0 0 (400,000) (425,937)
0 0 0 0 0 27,227 _
0 (1,013) 0 0 (9,473) (75,479)-
0 0 188,872 48,130 184,320 73,343
0 0 0 0 10,362 10,363
0 0 0 0 71,491 74,973
(848,288) (291,629) 3,532,592 (1,248,338) (2,921,828) (2,931,392)
0 23,000 0 0 396,303 433,731
(77,732) (74,989) 0 0 (476,318) (473,926)
(127,863) (23,433) 0 0 (1,010,245) (798,001)
370,433 0 199,367 471,310 3,287,421 471,310
(91,150) (197,029) (5,088,035) 0 (3,287,421) (471,310)
(574,600) (364,080) (1,167,224) (728,898) (3,743,71 (3,610,907)
27,071 53,022 0 0 367,877 463,364
(473,977) (294,628) (1,197,336) (901.965) (1,350,731) (2,243,663)
824,230 1,118,838 6,342,113 7,244,078 13,999,638 16,243,301
S 330,233 X824,230 3,144,737 S 6,342,113 12,648,907 S 13,999,638
45
COMBI1~tING STATEMENT OF CASH FLOWS
PROPRIETARY FUND TYPES -ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2001, WITH
COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000
CITY OF ATLANTIC BEACH, FLORIDA
Cash Flows From Operating Activities
Operating Income (Loss)
Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided By (Used In) Operating Acrivities:
Depreciation and Amortization
Loss on Disposals
Changes in Assets - (Increase) Decrease:
Accounts Receivable
Due From Other Governments
Inventory
Changes in Liabilities -Increase (Decrease):
Accounts Payable and Accrued Liabilities
Customer Deposits
Defen-ed Revenue
Net Cash Provided By (Used In) Operat[ng Act(vltles
Cash Flows From Noacapital Financing Activities
Connection Charges
Sewer Generation Charges
(Operating Transfers Out to Other Funds)
Operating Transfers In From Other Funds
Net Cash (Used In) Provided By Noncapltal Financing Activities
Cash Flows From Capital and Related Financing Activit[es
Changes in Interest Receivable
Collections on Note Receivable
Collections on Special Assessments
(Property, Plant and Equipment Additions)
Contributed Capital
(Principal Payments on Bonds and Note Payable)
(Interest Paid, Net of Capitalized Interest)
Capital Transfer In
(Capital Transfers Out)
Net Cash (Used In) Provided By Capital and Related
Fhiancing Activities
Cash Flows From Investing Activities
Interest Income
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents, Beginning of Year
Cash and Cash Equivalents, End of Year
46
Page 3 of 6 Pages
Sanitation Fund Totals
2nf11 20011 2001 2000
$ 264,048 $ 298,932 $ 262,516 $ 865,123
2,236 2,331 1,371,870 1,244,127
0 0 137,101 0
(2,128) 14,585 (6,035) 75,114
0 0 375,000 (375,000)
0 0 51,769 (7,521)
65,710 (58,964) 50,854 (527,299)
0 0 94,034 1,223
0 0 29,337 (43,529)
329,866 256,879 2,366,446 1,232,238
0 0 252,562 187,786
0 0 137,965 135,465
(200,000) (228,551) (600,000) (654,508)
0 0 0 27,227
(200,000) (228,551) (209,473) (304,030)
0 0 184,520 73,543
0 0 10,362 10,363
0 0 71,491 74,975
(2,700) (2,699) (2,924,528) (2,934,291)
0 0 396,303 433,731
0 0 (476,318) (473,926)
0 0 (1,010,245) (798,001)
0 0 5,287,421 471,310
0 0 (5,287.421) (471,310)
(2,700) (2,699) (3,748,415) (3,613,606)
28,495 29,141 396,372 494,505
155,661 54,770 (1,195,070) (2,190,893)
474,894 420,124 14,474,532 16,665,425
$ 630,555 $ 474,894 S 13,279,462 $ 14,474,532
1 ~ 1
COMBINING STATEMENT OF CASH FLOWS
PROPRIETARY FUND TYPES -ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2001, WITH
COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000
CITY OF ATLANTIC BEACH, FLORIDA Page 4 of 6 Pages
Water System Sewer System
Balance Sheet Components of Cash and Cash Equivalents
Cash and Cash Equivalents
Restricted Assets:
Cash and Cash Equivalents
Total Cash and Cash Equivalents, End o[ Year
Noncash Activity
Fined Asset Transfer In (Out)
Capitalized Interest Expense (Income)
S 2,002,163 S 1,806,220 S 3,738,334 S 3,643,589
470,794 4G8,268 922,606 915,218
S 2,472,957 S 2,274,488 S 4,680,940 S 4,558,807
S 900,150 S O S 3,617,472 S 0
S 18,003 S 35,269 S 90,213 S 239,012
47
COMBINING STATEMENT OF CASH FLOWS
PROPRIETARY FUND TYPES -ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2001, WITH
COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000
CITY OF ATLANTIC BEACH, FLORIDA Page 5 of 6 Pages
Stormwater System Bond Construction Account Total Utility Fund
2001 2000 2001 2000 2001 2000
Balance Sheet Components of Cash and Cash Equivalents
Cash and Cash Equivalents
Restricted Assets:
Cash and Cash Equivalents
Total Cash and Cash Equivalents, End of Year
Noncash Activity
Fixed Asset Transfers In (Out)
Capitalized Interest Expense (Income)
S 163,047 S 639,010 S O S O S 5,923,544 3 6,088,819
187,206 185,220 5,144,757 6,342,113 6,725,363 7,910,819
S 350,253 S 824,230 S 5,144,757 S 6,342,113 S 12,648,907 3 13,999,638
S 570,433 3 O S (5,088,05 S O S O S 0
3 91,150 S 197,029 S (286,284) S (398,613) S (86,918) S 72,697
48
COMBINING STATEMENT OF CASH FLOWS
PROPRIETARY FUND TYPES -ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2001, WITH
COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000
CITY OF ATLANTIC BEACH, FLORIDA Page 6 of tf Pages
Sanitation Etmd Totals
2001 2000 2001 2000
Balance Sheet Components of Cash and Cash Equivalents
Cash and Cash Equivalents
Restricted Assets:
Cash and Cash Equivalents
Total Cash and Cash Equivalents, End of Year
Noncash Activity
Fixed Asset Transfers In (Out)
Capitalized Interest Expense (Income)
S 630.555 S 474,894 S 6,554,099 S 6,Sti3,713
0 0 6,725.363 7,910,819
S 630,555 S 474,894 s 13,279,462 S 14,474,532
s o s o s o s o
s O S O s (86,918) S 72,697
49
SCHEDULES OF NET REVENUES IN ACCORDANCE
WITH BOND RESOLUTIONS
ENTERPRISE FUNDS (WATER AND SEWER)
FOR THE YEARS ENDED SEPTEMBER 30, 2001 AND 2000
CITY OF ATLANTIC BEACH, FLORIDA
Gross Revenues
Water $ 2,062,336 $ 2,138,816
Sewer 3,242,675 3,065,414
Connection Charges 252,562 187,786
Interest 359,606 412,342
Total Gross Revenues 5,917,179 5,804,358
Operating Expenses
Personal Services 1,015,862 1,034,200
Contractual Services 1,028,719 755,536
Supplies 295,129 278,572
Repairs and Maintenance 159,778 121,595
Heat, Light and Power 388,815 373,558
Other Expenses 1,083,968 1,091,914
(Total Operating Expenses) (3,972,271) (3,655,375)
Total Net Revenues in Accordance With
Bond Resolutions 1,944,908 2,148,983
Capital Facilities Charges 137,965 135,465
Special Assessments -New 0 0
Net Revenues Plus Capital Facilities Charges and
Special Assessments $ 2,082,873 $ 2;284,448
Debt Service
Interest Paid $ 1,166,228 $ 1,183,770
(Capitalized Interest) (199,367) (471,310)
Principal Paid 425,000 410,000
(Interest Earnings -Sinking Fund) (27,606) (19,922)
Total Debt Service $ 1,364,255 $ 1,102,538
Debt Service Coverage Ratio 1.53 2.07
Debt Service Coverage Ratio Excluding Capital
Facilities Charges 1.43 1.95
Required Debt Service Coverage Ratio 1.10 1.10
Required Debt Service Coverage Ratio, Excluding
Capital Facilities Charges 1.05 .1.05
50
FIDUCIARY FUND TYPES
COMBINING BALANCE SHEET
FIDUCIARY FUND TYPES
ALL FIDUCIARY FUNDS
SEPTEMBER 30, 2001,
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000
CITY OF ATLANTIC BEACH, FLORIDA
Pooled Cash
Payroll Clearing Pension Trust Expendable Trust Totals
2001 2000 2001 2000 2001 2000 2001 2000
Assets
Cash and Cash Equivalents S 36,008 S 28,382 S 41,006 S 69,278 S 170,956 S 178,458 S 247,970 S 276,118
Investments 0 0 8,891,138 8,860,069 0 0 8,891,138 8,860,069
Total Assets 36,008 28,382 8,932,144 8,929,347 170,956 178,458 9,139,108 9,136,187
Liabilities and Fund Balances
Liabilities
Accounts Payable and Accrued Liabilities
Fund Balances
Reserved For Police Training and
Other Expenditures
Reserved For Rerirement
Total Fund Balances
Total Liabilities and Fund Balances
36,008 28,382 452 3,699 0 0 36,460 32,081
0 0 0 0 179,956 178,458 170,956 178,458
0 0 8,931,692 8,925,648 0 0 8,931,692 8,925,648
0 0 8,931,692 8,925,648 170,956 178,458 9,102,648 9,104,106
S 36,008 S 28,382 S 8,932,144 S 8,929,347 S 170,956 S 178,458 S 9,139,108 S 9,136,187
$1
COMBINING STATEMENT OF PLAN NET ASSETS
PENSION TRUST FUNDS
SEPTEMBER 30, 2001
CITY OF ATLANTIC BEACH, FLORIDA
General
Employees' Police
D ef:rmm~n* T?afirnman+
Assets
Cash and Cash Equivalents
Investments
Total Assets
$ 30,649 $ 10,357 $ 41,006
5,087,255 3,803,883 8,891,138
5,117,904 3,814,240 8,932,144
Liabilities and Net Assets
Liabilities
Accounts Payable
Net Assets Held in Trust For Pension Benefits
Total Liabilities and Net Assets
452 0 452
$ 5,117,904 $ 3,814,240 $ 8,932,144
52
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ADDITIONAL INFORMATION
Additional information schedules differ from financi
al statements because they usually cover more than
r.,, one fiscal year and may present nonaccounting data. Certain schedules are unaudited, as marked.
1
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BOND COVENANT CONTINUING DISCLOSURES
Selected Financial Information and Operating Data Regarding the System
Historical Revenues and Expenses
Major Utility Customers (Unaudited)
Summary of Water Usage (Unaudited)
Summary of Wastewater Treatment (Unaudited):
Atlantic Beach Sewer Division
Buccaneer Sewer Division
Other Bond Covenant Disclosures
Utility Service Tax Collections
Ad Valorem Tax Collections
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SELECTED FINANCIAL INFORMATION AND OPERATING DATA
REGARDING THE SYSTEM
Revenues
Operating Revenues
~: Water:
Customer Charges
Miscellaneous Charges
Total Water
Sewer:
Customer Charges
Total Operating Revenues
Nonoperating Revenues
Interest Income:
Water
Sewer
Total Nonoperating Revenues
Total Revenues
Historical Revenues and Expenses
1997 1998 1999 2000 2001
Expenses
Operating Expenses
Water
Sewer
('" Total Operating Expenses
i Administrative and Nondivisional
t Water
Sewer
Total Administrative and Nondivisional
Other Expenses
Total Expenses
Net Revenues
Capital Improvement Charges
Sewer
Net Revenues Available For Debt Service (2)
Nonoperating Income (Expense)
(Interest Expense)
(Loan Amortization)
Total Nonoperating Income (Expense)
Net Income Before Depreciation and
Operating Transfers
$ 1,759,802 $ 1,770,795 $ 1,752,053 $ 1,835,015 $ 1,913,167
332,919 308,630 333,271 363,435 231,298
2,092,721 2,079,425 2,085,324 2,198,450 2,144,465
3,118,621 2,977,937 2,993,178 3,193,566 3,413,108
5,211,342 5,057,362 5,078,502 5,392,016 5,557,573
143,362 186,562 157,038 135,249 123,274
210,270 292,921 271,776 277,093 236,332
353,632 479,483 428,814 412,342 359,606
5,564,974 5,536,845 5,507,316 5,804,358 5,917,179
743,041 774,192 963,064 989,235 1,051,904
1,296,781 1,316,590 1,488,922 1,574,226 1,836,399
(2,039,822) (2,090,782) (2,451,986) (2,563,461) (2,888,303)
343,927 358,145 330,340 309,386 327,196
343,927 388,004 328,671 534,027 564,744
(687,854) (746,149) (659,011) (843,413) (891,940)
(112,756) (233,143) (331,398) (248,501) (192,028)
(2,840,432) (3,070,074) (3,442,395) (3,655,375) (3,972,271)
2,724,542 2,466,771 2,064,921 2,148,983 1,944,908
127,758 295,504 132,109 135,465 137,965
2,852,300 2,762,275 2,197,030 2,284,448 2,082,873
(614,318) (781,217) (797,692) (764,757) (874,231)
(15,383) (15,383) (15,695) (16,006) (16,618)
(629,701) (796,600) (813,387) (780,763) (890,849)
$ 2,222,599 $ 1,965,675 $ 1,383,643 $ 1,503,685 $ 1,192,024
Notes: (1) Line entry for comparison to projected operating results.
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SELECTED FINANCIAL INFORMATION AND OPERATING DATA -
REGARDING THE SYSTEM
Major Utility Customers (Unaudited) -
Set forth is a listing of major customers of the System with annual billings in excess of $20,000, based -
uponbilling records for fiscal year 2001. These customers collectively accounted for approximately 21 ~
of System revenues for 2001.
Major Customer Annual Billings
Naval Off-Base Housing $ 448,296 _
Fleet Landing (Retirement Community) 174,501
Hannah (Regional) Park 126,240
City of Atlantic Beach, Florida 79,027
Admiral's Walk (Mobile Home Park) 62,949
Oaks of Atlantic Beach (Mobile Home Park) 61,185
Sea Turtle Inn (Hotel) 58,518
Sea Oats Plantation (Apartment Complex) 55,786
Arms Property 45,145
Comfort Inn (Hotel) ~ 34,443
Total Fiscal Year 2001 $ 1,146,090
54
SELECTED FINANCIAL INFORMATION AND OPERATING DATA
REGARDING THE SYSTEM
Summary of Water Usage (Unaudited)
Annual Water System Customers Average Annual
Total Percentage Single Unit Multi-Unit Demand Percentage
Year Population Change CAB BUC Total CAB BUC Total (MGD) Change
Historical
1994 22,006 .9% 4,300 2,063 6,363 1,281 1,287 2,568 3.131 8.1
1995 22,259 1.1 % 4,345 2,079 6,424 1,287 1,283 2,570 3.154 .7%
1996 22,857 2.7% 4,504 2,167 6,671 1,491 2,184 3,675 3.237 2.6%
1997 23,445 2.6% 4,709 2,267 6,976 1,506 2,184 3,690 3.175 (1.9)%
1998 23,766 1.4% 4,750 2,280 7,030 1,516 2,184 3,700 3.163 (.4)%
1999 23,866 .4% 4,829 2,270 7,099 1,516 2,184 3,700 3.290 4.0%
2000 (1) 25,913 8.6% 4,956 2,361 7,317 1,560 2,211 3,771 3.294 .1
2001 26,301 1.5% 5,008 2,472 7,480 1,580 2,111 3,691 3.099 (5.9)%
Atlantic Beach Division (CAB)
Buccaneer Division (BUC)
(1) Per 2000 Census, prior and subsequent years are estimated.
55
SELECTED FINANCIAL INFORMATION AND OPERATING DATA
REGARDING THE SYSTEM
Summary of Wastewater Treatment (Unaudited)
Atlantic Beach Sewer Division
Annual Sewer Customers
Percentage Single Multi-
Year Population Change Unit Unit Total
Historical
1994 12,561 .5% 3,744 1,228 4,972
1995 12,802 1.9% 3,815 1,223 5,038
1996 13,202 3.1 % 3,948 1,431 5,379
1997 13,650 3.4% 4,133 1,433 5,566
1998 13,562 (.6)% 4,202 1,458 5,660
1999 13,619 .4% 4,311 1,462 5,773
2000 (1) 13,368 (1.8)% 4,429 1,518 5,947
2001 13,568 1.5% 4,549 1,489 6,038
(1) Per 2000 Census, prior and subsequent years are estimated.
Average Annual
Flow Percentage
(MGD) Change
2.280 4.1 %
2.634 15.5
1.807 (31.4) %
1.639 (9.3)%
1.780 8.6%
1.528 (14.2)
1.622 6.2
1.560 (3.8)
56
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SELECTED FINANCIAL INFORMATION AND OPERATING DATA
REGARDING THE SYSTEM
Summary of Wastewater Treatment (Unaudited)
Buccaneer Sewer Division
Annual Sewer Customers Average Annual
Percentage Single Multi- Flow Percentage
Year Population Change Unit Unit Total (MGD) Change
Historical
1994 9,445 1.4% 2,261 1,178 3,439 1.027 15.0%
1995 9,457 .1 % 2,254 1,174 3,428 1.028 .1
1996 9,655 2.1% 2,329 2,437 4,766 1.009 (1.8)%
1997 9,795 1.5% 2,402 2,437 4,839 1.027 1.8%
1998 10,204 4.2% 2,441 2,461 4,902 1.011 (1.6)%
1999 10,247 .4% 2,489 2,458 4,947 .951 (5.9)%
2000 (1) 11,825 15.4% 2,563 2,491 5,054 .918 (3.5)%
2001 12,002 1.5% 2,378 2,555 4,933 .875 (4.7)%
(1) Per 2000 Census, prior and subsequent years are estimated.
57
OTHER BOND COVENANT DISCLOSURES
Utility Service Tax Collections
(Last Five Years)
Year Electricity Telecom Gas Fuel Oil Total
1997 $ 307,953 $ 144,824 $ 38,228 $ 290 $ 491,295
1998 331,985 153,314 40,693 276 526,268
1999 329,467 175,524 21,826 126 526,943
2000 330,139 203,206 40,721 165 574,231
2001 343,328 189,737 45,056 194 578,315
Ad Valorem Tax Collections
(Last Five Years)
Year Current Delinquent
1997 $ 1,420,033 $ 2,335
1998 1,519,645 5,413
1999 1,757,357 1,175
2000 1,875,702 748
2001 2,094,640 1,466
Total
$ 1,422,368
1,525,058
1,758,532
1,876,450
2,096,106
58
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OTHER PENSION SCHEDULES
Computed Pension Contribution Comparative Schedule
Pension Revenues By Source and Expenses By Type
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COMPUTED PENSION CONTRIBUTION COMPARATIVE SCHEDULE
LAST TEN FISCAL YEARS
CITY OF ATLANTIC BEACH, FLORIDA
Employees' Retirement Plan**
Contribution Rates
Fiscal As Percents of
Year Valuation Valuation Payroll Dollar Contribution
Ending Date Fire Valuation For Fiscal Year
9130 9/30 General Police Fighters Payroll Computed Actual
1992 1990 9.89 12.77 8.85 $ 2,295,583 $ 264,753 $ 266,520
1993 1991* 9.27 11.15 6.46 2,491,992 255,488 268,271
1994 1992 9.02 10.46 6.48 2,755,004 271,518 274,892
1995 1993* 9.57 11.315 10.665 2,964,866 326,284 327,581
1996 1994* 10.85 14.945 13.675 3,067,702 420,591 421,465
1997 1995* 11.12 14.555 15.255 3,053,964 419,766 439,671
1998 1996* 11.99 18.895 5.405 3,106,770 441,972 480,407
1999 1997* 11.94 18.975 6.435 3,305,491 460,819 477,147
2000 1998* 11.58 17.673 N/A 3,007,312 439,433 439,431
General Employees' Retirement Plan
Fiscal
Year Valuation Contribution Rates Dollar Contribution
Ending Date As Percents of Valuation For Fiscal Year
9/30 9/30 Valuation Payroll Payroll Computed Actual
2001 1999 11.24 % $ 2,185,131 $ 266,148 $ 266,148
2002 2000 11.41 % 2,329,877 288,070
Police Retirement Plan
Fiscal
Year
Ending
9/30
2001
2002
Valuation Contribution Rates Dollar Contribution
Date As Percents of Valuation For Fiscal Year
9/30 Valuation Payroll Payroll Computed Actual
1999 .16.70% 1,018,459 183,091 183,091
2000 17.10% 1,213,234 224,812
l * After changes in benefit provisions and/or actuarial experience estimates.
** Prior to creation of separate pension plans for police and general employees.
59
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PENSION REVENUES BY SOURCE AND EXPENSES BY TYPE
LAST TEN FISCAL YEARS
CITY OF ATLANTIC BEACH, FLORIDA
zoos
Amount Percent 2000 1999 1998 1997 1996 1995 1994 1993 1992
Pension Revenues
Contributions:
Member $ 72,466 15.0°,b $ 72,356 $ 86,172 $ 96,549 $ 98,778 $ 111,431 $ 99,115 $ 93,905 $ 28,613 $ 27,717
City 379,682 78.5'% 375,434 358,351 362,340 331,540 329,495 243,429 198,158 194,679 203,568
State -Police 69,557 14.4 63,997 68,048 70,289 68,966 62,426 57,858 49,918 46,880 41,694
State -Fire Fighters 0 0.0% 2,110 50,748 47,778 39,165 29,544 26,294 26,816 26,712 19,118
Investment Interest and
Dividends 123,670 25.6 15,222 9,766 8,290 5,300 4,863 3,887 2,933 3,419 3,170
(Loss) Gain (186,145) (38.5)x, 556,808 839,503 781,553 1,423,586 757,698 823,698 21,828 482,123 368,633
Miscellaneous Revenues 24,591 5.0~ 46,320 47,375 18,747 18,766 12,133 0 0 42 0
Total Pension Revenues $ 483,821 100.04b $ 1,132,247 $ 1,459,963 $ 1,385,546 $ 1,986,101 $ 1,307,590 $1,254,281 $ 393,558 $ 782,468 $ 663,900
Pension Expenditures
Benefits and Refunds Paid $ 397,011 83.1`~i $ 385,357 $ 416,698 $ 400,832 $ 360,891 $ 280,159 $ 257,042 $ 155,842 $ 118,272 $ 89,375
Other Expenses' 80,766 16.9` 103,719 108,447 82,623 70,058 56,329 0 0 0 0
Total Pension Expenditures $ 477,777 100.0;1; $ 489,076 $ 525,145 $ 483,455 $ 430,949 $ 336,488 $ 257,042 $ 155,842 $ 118,272 $ 89,375
* Other expenses shown separate from benefits and refunds since 1995.
60
l I 1 I 1 I I f I i 1 l 1 1 I I I 1 1
ADDITIONAL ELEMENTS OF REPORT. PREPARED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS,
ISSUED BY THE COMPTROLLER GENERAL OF THE UNITED
STATES; THE OFFICE OF MANAGEMENT AND BUDGET {OMB)
CIRCULAR A-133; AND THE RULES OF THE A UDITOR GENERAL
OF THE STATE OF FLORIDA
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SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED SEPTEMBER 30, 2001
CITY OF ATLANTIC BEACH, FLORIDA
Federal State
CFDA CSFA
Number Number Number
U.S. Department of Housing and Urban Development
Passed Through City of Jacksonville, Florida
Community Development Block Grant/Entitlement Grant (FY 2000)
Community Development Block Grant/Entitlement Grant (FY 2001)
U.S. Department of Justice Passed Through Florida
Department of Community Affairs
Jordan Park Community Center II
Jordan Park Community Center III
U.S. Department of Justice Passed Through Florida
Department of Law Enforcement
Local Law Enforcement Block Grant -Police IT Upgrade
U.S. Department of Transportation Passed Through
Florida Department of Transportation
DUI Enforcement Project
Police Department DUI Enforcement Program
Police Department Pedestrian and Bicycle Education
and Enforcement Program
Total Federal Awards
State Financial Assistance
Florida Department of Community Affairs
Emergency Management Preparedness Grant (North Core
City Stormwater and Sewer Construction)
Florida Department of Environmental Protection
Core City Sanitary Sewer Improvements
Total State Financial Assistance
Award City
Amount (Receipts) Expenses Match
14.218 5629-17 (FY 1999-2000) $ 150,000 $ (68,451) $ 0
14.218 5629-21 (FY 2000-2001) 334,072 (277,881) 318,765
16.579 00-CJ-D8-04-26-02-137 15,000 (3,980) 0
16.579 O1-CJ-J1-04-26-02-083 15,000 (8,198) 11,720 $ 3,907
16.592 O1-CJ-2E-04-26-02-084 10,000 (10,000) 0
20.600 JS-00-06-10-01/AH898 36,800 (30,204) 0
20.600 AL-01-05-04-01/AJ707 29,095 (28,140) 28,140
20.600 FB-01-23-11-01/AJ711 10,000 0 6,522
$ (426,854) $ 365,147
52.008 OOCP-07-04-26-02-102 $ 300,000 $ (300,000) $ 231,341 $ 231,341
37.039 SP747110 350,000 (350,000) 0
$ (650,000) $ 231,341
61
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company
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND ON
INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF
GENERAL-PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
("" WITH GOVERNMENT AUDITING STANDARDS
Honorable Mayor, Ciry Commission and City Manager
City of Atlantic Beach
Atlantic Beach, Florida
We have audited the general-purpose financial statements of the City of Atlantic Beach, Florida (the
City), as of and for the year ended September 30, 2001, and have issued our report thereon dated
November 21, 2001. We conducted our audit in accordance with generally accepted auditing standards
and the standards applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether the City's general-purpose financial statements
are free of material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts and grants, noncompliance with which could have a direct and material effect on
the determination of financial statement amounts. However, providing an opinion on compliance with
those provisions was not an objective of our audit and, accordingly, we do not express such an opinion.
t The results of our tests disclosed no instances of noncompliance that are required to be reported under
l Government Auditing Standards. .
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City's internal control over financial reporting
in order to determine our auditing procedures for the purpose of expressing our opinion on the general-
purpose financial statements and not to provide assurance on the internal control over financial reporting.
Our consideration of the internal control over financial reporting would not necessarily disclose all
matters in the internal control over financial reporting that might be material weaknesses. A material
weakness is a condition in which the design or operation of one or more of the internal control
components does not reduce to a relatively low level the risk that misstatements in amounts that would
be material in relation to the general-purpose financial statements being audited may occur and not be
detected within a timely period by employees in the normal course of performing their assigned functions.
We noted no matters involving the internal control over financial reporting and its operation that we
consider to be material weaknesses.
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Certified Public Accountants
P.O. Box 23999.222 N.E.1 st Stroet • Gainesville, Florida 32602 • (352) 378-2461 • FAX (352) 378-2505
Laurel Ridge Professional Center • 2347 S.E. 17th Street • Ocala, Florida 34471 • (352) 732.3872 • FAX (352) 732-0542
443 East College Avenue • Tallahassee, Florida 32301 • (850) 224-7144 • FAX (850) 224-1762
1727 2n0 Street • Sarasota, Florida 34236 • (941) 365-3774 • FAX (941)365-0238
MEMBERS OF AMERK:AN ANO FLORIDA INSTiMES OF CERTIFlED PUBLIC ACCOIRITANIS
MEMBER OR AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOVNTA!!TS PRIVATE COMPAMES ANO S.EC. PRACTICE SECTIONS
62
Honorable Mayor, City Commission and City Manager
City of Atlantic Beach
Atlantic Beach, Florida
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND ON
INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF
GENERAL-PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
(Concluded)
This report is intended solely for the information and use of the Mayor, City Commission, management,
and federal awarding agencies and pass-through entities, and is not intended to be and should not be used
by anyone other than these specified parties.
November 21, 2001 ~Z~
Gainesville, Florida ~r7y~
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INDEPENDENT AUDITORS' REPORT ON COMPLIANCE
WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM
AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE
WITIi OMB CIRCULAR A-133
Honorable Mayor, City Commission and City Manager
City of Atlantic Beach
' ' Atlantic Beach, Florida
C Compliance
We have audited the compliance of the City of Atlantic Beach, Florida with the types of compliance
requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance
Supplement that are applicable to its major federal program for the year ended September 30, 2001. The
` ' City of Atlantic Beach, Florida's major federal program is identified in the summary of auditors' results
section of the accompanying schedule of findings and questioned costs. Compliance with the
t requirements of laws, regulations, contracts and grants applicable to its major federal program is the
t responsibility of the City of Atlantic Beach, Florida's management. Our responsibility is to express an
_ opinion on the City of Atlantic Beach, Florida's compliance based on our audit.
- ~ We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of
States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133
require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance
with the types of compliance requirements referred to above that could have a direct and material effect
on the major federal program occurred. An audit includes examining, on a test basis, evidence about the
City of Atlantic Beach, Florida's compliance with those requirements and performing such other
procedures as we considered necessary in the circumstances. We believe that our audit provides a
reasonable basis for our opinion. Our audit does not provide a legal determination on the City of Atlantic
Beach, Florida's compliance with those requirements.
In our opinion, the City of Atlantic Beach, Florida complied, in all material respects, with the
requirements referred to above that are applicable to its major federal program for the year ended
September 30, 2001. However, the results of our auditing procedures disclosed one instance of
noncompliance with those requirements, which are required to be reported in accordance with OMB
Circular A-133 and which is described in the accompanying schedule of findings and questioned costs
,.. as item 01-1.
Certified Public Accountants
P.O. Box 23999.222 N.E.1 st Stroet • Gainesville, Florida 32602 • (352) 378-2461 • FAX (352) 378-2505
Laurel Ridge Professional Center • 2347 S.E. 17th Stroet • Ocala, Florida 34471 • (352) 732-3872 • FAX (352) 732-0542
443 East College Avenue • Tallahassee, Florida 32301 • (850) 224-7144 • FAX (850) 224-1762
1727 2"° Street • Sarasota, Florida 34236 • (941)365-3774 • FAX (941) 365-0238
MEMBERS OF AMERxJW AND FLORIDA INSTITUTES OF CERTIFlED iVBUC ACCOUNTANTS
MEMBER OF AMERICAN INSTTME OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES ANO B.EC. PRACTICE SECTIONS
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Honorable Mayor, City Commission and City Manager
City of Atlantic Beach
Atlantic Beach, Florida
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE
WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM
AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE
WITH OMB CIRCULAR A-133
(Concluded)
Internal Control Over Compliance
The management of the Ciry of Atlantic Beach, Florida is responsible for establishing and maintaining
! effective internal control over compliance with requirements of laws, regulations, contracts and grants
t applicable to its major federal program. In planning and performing our audit, we considered the City
of Atlantic Beach, Florida's internal control over compliance with requirements that could have a direct
r, and material effect on its major federal program in order to determine our auditing procedures for the
purpose of expressing our opinion on compliance and to test and report on internal .control over
compliance in accordance with OMB Circular A-133.
We noted a certain matter involving the internal control over compliance and its operation that we
consider to be a reportable condition. Reportable conditions involve matters coming to our attention
relating to significant deficiencies in the design or operation of the internal control over compliance that,
in our judgment, could adversely affect the City of Atlantic Beach, Florida's ability to administer a major
federal program in accordance with the applicable requirements of laws, regulations, contracts, and
grants. The reportable condition is described in the accompanying schedule of findings and questioned
costs as item 01-2.
A material weakness is a condition in which the design or operation of one or more of the internal control
components does not reduce to a relatively low level the risk that noncompliance with the applicable
requirements of laws, regulations; contracts, and grants that would be material in relation to a major
federal program being audited may occur and not be detected within a timely period by employees in the
~. normal course of performing their assigned functions. Our consideration of the internal control over
compliance would not necessarily disclose all matters in the internal control that might be reportable
conditions, and accordingly, would not necessarily disclose all reportable conditions that are also
considered to be material weaknesses. However, we believe that the reportable condition described above
is not a material weakness.
This report is intended solely for the information and use of the City Commission, management, and
federal awarding agencies and pass-through entities, and is not intended to be and should not be used by
anyone other than these specified parties.
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November 21, 2001 G~~"~l
Gainesville, Florida l
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SCHEDULE OF FINDINGS AND QUESTIONED COSTS IN
ACCORDANCE WITH OMB CIRCULAR A-133
CITY OF ATLANTIC BEACH, FLORIDA
ATLANTIC BEACH, FLORIDA
1. Summary of Audit Results
I. Type of Audit Report Issued on General-Purpose Financial Statements
Unqualified Opinion
II. Reportable Conditions and/or Material Weaknesses in Internal Control
Audit disclosed no reportable conditions or material weaknesses
III. Noncompliance Material to Auditee General-Purpose Financial Statements
Audit disclosed no material instances of noncompliance
IV. Reportable Conditions and/or Material Weaknesses in Internal Control Over the Major
'r Program
Y One reportable condition disclosed during the audit of internal control over the major federal
award programs is reported in this schedule. The condition is not reported as a material
r"' weakness
V. Type of Audit Report Issued on Compliance With Requirements Applicable to the Major
(" Program
Unqualified Opinion
VI. Audit Findings Relative to Section .510(a) of OMB Circular A-133
Audit findings relative to the major federal award program for the City of Atlantic Beach,
Florida are reported in this schedule
VII. Major Federal Program
U.S. Department of Housing and Urban Development
Passed Through City of Jacksonville, Florida:
Community Development Block Grant/Entitlement Grant (14.218)
VIII. Dollar Threshold Used to Distinguish Between Type A and Type B Programs
$300,000
IX. Auditee Qualification as Low-Risk Auditee
The auditee does not qualify as a low-risk auditee per criteria set forth in Section .530 of
OMB Circular A-133
2. Findings Related to the General-Purpose Financial Statements Required to be Reported Under
GAGAS
The audit disclosed no findings which are required to be reported under GAGAS
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r SCHEDULE OF FINDINGS AND QUESTIONED COSTS IN
ACCORDANCE WITH OMB CIRCULAR A-133
CITY OF ATLANTIC BEACH, FLORIDA
ATLANTIC BEACH, FLORIDA
(Continued)
3. Findings and Questioned Costs For Federal Awards Required to be Reported Under
Section .510(a) of OMB Circular A-133
Questioned
Costs
Findings
` ' Department of Housing and Urban Development
Community Development Block Grant/Entitlement Grant - CFDA
No. 14.218
01-1 Grant No. 5629-21 -Year Ended September 30, 2001
Condition -Documentation of verification of low-to-moderate
income status could not be located for one selected participant. In
addition, verification of income status for four other participants was
not current.
Criteria -Eligibility for the program requires family income to be
~, between low and moderate income levels as determined by the
Department of Housing and Urban Development (HUD).
r; Effect on Condition -The cost of the assistance may be disallowed. $ 114,722
Cause of Condition - It appears that procedures were not in place
to ensure that potential participants requalify for Community
Development Block Grant (CDBG) funds when such income
verification is outdated. Also, documentation was apparently not
filed correctly for the one instance mentioned above.
Recommendation -The City of Atlantic Beach, Florida should again
verify the eligibility of the recipients whose documentation either
could not be located or was outdated.
01-2 Grant No. 5629-21 -Year Ended September 30, 2001
Condition -Monthly status reports were not always being completed
and filed with the City of Jacksonville, Florida (grantor) as required
by the grant agreement.
Criteria -Internal controls should be in place to ensure that all grant
requirements are being adhered to.
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3.
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 1N
ACCORDANCE WITH OMB CIRCULAR A-133
CITY OF ATLANTIC BEACH, FLORIDA
ATLANTIC BEACH, FLORIDA
(Concluded)
and Questioned Costs For Federal Awards Required to be
10(a) of OMB Circular A-133 (Concluded)
Findings (Concluded)
01-2 Grant No. 5629-21 -Year Ended September 30, 2001 (Concluded)
Effect -Failure to complete and/or file monthly status reports on a
timely basis may give cause for further payments to the City being
withheld.
Recommendation - Procedures should be implemented to
appropriately monitor responsible City personnel to ensure that
specific grant requirements are being complied with.
Total Questioned Costs
Under
Questioned
Costs
$ 0
$ 114,722
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SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS IN
:,
ACCORDANCE WITH OMB CIRCULAR A-133
CITY OF ATLANTIC BEACIi, FLORIDA
ATLANTIC BEACH, FLORIDA
1. Status of Prior Audit Findings
There were no prior year audit findings related to federal award programs.
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CITY OFATLANTIC BEACH
800 SEMINOLE ROAD
ATLANTIC BEACH, FLORIDA 32233-5445
TELEPHONE: (904) 247-5800
FAX: (904) 247-5877
SUNCOM: 852-5800
http://ci. aslant ic-beach. fl.us
CORRECTIVE ACTION PLAN
CITY OF ATLANTIC BEACH, FLORIDA
ATLANTIC BEACH, FLORIDA
U.S. Department of Housing and Urban Development
The City of Atlantic Beach, Florida respectfully submits the following corrective action
plan for the year ended September 30, 2001.
Name and address of independent public accounting fine: Purvis Gray & Company
222 N.E. lst Street, Gainesville Florida 32602
Audit Period: October 1.2000 -September 30 2001
Outlined below are the findings and responses to the SCHEDULE OF FINDINGS AND
QUESTIONED COSTS IN ACCORDANCE WITH OMB CIRCULAR A-133 for the
fiscal year ended September 30, 2001. The findings are numbered consistently with the
numbers assigned in the schedule.
FINDINGS -FEDERAL AWARD PROGRAMS AUDITS
Department of Housing and Urban Development
Community Development Block GrantJEntitlement Grant
01-1 Housing Rehabilitation Assistance to Low-to-Moderate Income Persons-
CFDA No. 14.218
Reportable Condition: Documentation of verification of low-to-moderate
income status could not be located for one selected participant. In
addition, verification of income status for four other participants was not
current. Eligibility for the program requires family income to be between
low and moderate-income levels as determined by the Department of
Housing and Urban Development (HUD). The cost of the assistance may
be disallowed.
70
It appears that procedures were not in place to ensure that potential
participants requalify for Community Development Block Grant (CDBG)
funds when such income verification is outdated. Also, documentation
was apparently not filed correctly for the one instance mentioned above.
Recommendation: The City of Atlantic Beach, Florida should again verify
the eligibility of the recipients whose documentation either could not be
located or was outdated.
Action Taken: Since the date of the exit conference, the low-to-moderate
income status has been re-verified and current income verification
documents have been obtained for four of the five recipients referred to in
this finding. The fifth recipient is deceased, and we are conferring with
our City Attorney to determine the proper course of action. Copies of the
documentation received are attached. This documentation supports the
allowability of the cost expended, as it demonstrates that the recipients
qualify under the grant program based on income eligibility. Mortgage
notes were signed by all the recipients prior to inception of the work,
allowing for reimbursement on a pro rata basis within ten years, if the
recipient's eligibility status changes.
I have met with the employee responsible for obtaining the low-to-
moderate income status documentation and discussed the importance of
completing and properly filing this documentation. In the future, I will be
responsible for verifying that the income status documentation is current,
prior to commencement of the rehabilitation work. One copy of the
income verification form will be maintained in the Community
Development Director's office and a second copy will be maintained in
the City Clerk's Office, with the respective grant year contract and other
applicable grant documentation.
O 1-2 Monthly Status Reports-CFDA No. 14.218
Reportable Condition: Monthly status reports were not always being
completed and filed with the City of Jacksonville, Florida (grantor) as
required by the grant agreement. Internal controls should be in place to
ensure that all grant requirements are being adhered to. Failure to
complete and/or file monthly status reports on a timely basis may give
cause for further payments to the City being withheld.
Recommendation: Procedures should be implemented to appropriately
monitor responsible .City personnel to ensure that specific grant
requirements are being complied with.
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i , Action Taken: We concur with the recommendation. The following
procedures will be implemented immediately: The City Manager will
meet with the Community Development Director monthly to review the
l Monthly Status Report. He will initial each report, signifying his review,
prior to submission to the City of Jacksonville HUD office. If a vacancy
f or extended absence occurs in the Community Development Director
t position, the City Manager will immediately notify City of Jacksonville
HUD of any change in grant administration personnel, and the City
f Manager will be responsible for ensuring that the grant requirements are
` complied with.
If the U.S. Department of Housing and Urban Development has questions
regarding this plan, please call me at (904) 247-5800.
C Sincerely yo rs,
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J' Hanson
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MANAGEMENT LETTER
r Honorable Mayor, City Commission and City Manager
1 1 City of Atlantic Beach
Atlantic Beach, Florida
We have audited the general-purpose financial statements of the City of Atlantic Beach, Florida as of and
for the fiscal year ended September 30, 2001, and have issued our report thereon dated November 21,
2001.
We have issued our independent auditors' report on compliance and on internal control over financial
reporting, Independent Auditor's Report on Compliance and Internal Control over Compliance Applicable
to each Major Federal Awards Program, and Schedule of Findings and Questioned Costs based on an
audit of financial statements performed in accordance with Government Auditing Standards and OMB
Circular A-133, Audits of States, Local Goverments, and Non-Profit Organizations, dated November 21,
2001. Disclosures in those reports, if any, should be considered in conjunction with this management
letter.
We conducted our audit in accordance with United States generally accepted auditing standards and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations. Additionally, our audit was conducted in accordance with
the provisions of Chapter 10.550, Rules of the Auditor General, which govern the conduct of local
governmental entity audits performed in the state of Florida and require that certain items be addressed
in this letter.
The Rules of the Auditor General [Section 10.554(1)(g)1.(a)] require that we comment as to whether or
not inaccuracies, shortages, defalcations, fraud, and violations of laws, rules and regulations reported in
the preceding annual financial audit report have been corrected. There were no such matters disclosed
in the preceding audit report.
The Rules of the Auditor General [Section 10.554(1)(g)1.(b)] require that we comment as to whether or
not recommendations made in the preceding annual financial audit report have been followed. There
were no such matters disclosed in the preceding audit report.
The Rules of the Auditor General [Section 10.554(1)(g)2.], require that we determine whether the City
of Atlantic Beach, Florida complied with Section 218.415, Florida Statutes, regarding investment of
public funds. Our audit disclosed no matters requiring comment as outlined in Section 218.415, Florida
Statutes.
Certified Publtc Accountant
P.O. Box 23999.222 N.E.1 st Street • Gainesville, Florida 32602 • (352) 378-2461 • FAX (352) 378-2505
Laurel Ridge Professional Center • 2347 S.E. 17th Street • Ocata, Florida 34471 •(352) 732-3872 • FAX (352) 732-0542
443 East Coliege Avenue • Tallahassee, Florida 32301 • (850) 224-7144 • FAX (850) 224-1762
1727 2n° Street • Sarasota, Florida 34236 • {941) 365.3774 • FAX (941) 365-0238
~+ MEMBERS OF AMERICAN AND FLORIDA INSTITUTES Of CERTIFIED PUBLIC ACCOUNTANTS
Ill MEMBER Of AMERIGH INSTRIJTE OF C1cRTIfIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES ANO S.EC. PRACTICE SECTIONS
73
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l Honorable Mayor and City Council
City of Atlantic Beach
r- Atlantic Beach, Florida
MANAGEMENT LETTER
(Continued)
The Rules o the Auditor General
f [Sections 10.554(1)(g)3.and 4.] require disclosure in the management
letter of the following matters if not already addressed in the auditors' report on compliance and internal
control: recommendations to improve financial management, accounting procedures, and internal
controls; violations of laws, rules, and regulations which may or may not materially affect the financial
statements; illegal or improper expenditures that may or may not materially affect the financial statements;
improper or inadequate accounting procedures (e.g., the omission of required disclosures from the
financial statements), failures to properly record financial transactions; and other inaccuracies, shortages,
and defalcations and instances of fraud discovered by, or that come to the attention of, the auditor. Our
audit disclosed no matters required to be disclosed by the Rules of the Auditor General [Sections
10.554(1)(g)3. and 4.].
The Rules of the Auditor General [Section 10.554(1)(g)5.] also require that the name or official title and
legal authority for the government be disclosed in the management letter, unless disclosed in the notes
to the financial statements. The City was established in 1957, under a charter in accordance with the
~" Laws of Florida 57-1126. There were no component units related to the City of Altantic Beach, Florida.
As required by the Rules of the Auditor General [Section 10.554(1)(g)6.(a)], the scope of our audit
included a review of the provisions of Section 218.503(1), Florida Statutes, "Determination of Financial
Emergency." In connection with our audit, we determined that the City of Atlantic Beach, Florida is not
in a state of financial emergency as a consequence of the conditions described in Section 218.503(1),
r Florida Statutes.
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As required by the Rules of the Auditor General [Section 10.554(1)(g)6.(b)], we determined that the
financial report for the City of Atlantic Beach, Florida for the fiscal year ended September 30, 2001, 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 fiscal year ended September 30, 2001.
[^ The Rules of tJte Auditor General [Section 10.554(1)(g)6.(c)], require that we disclose that we have
applied financial condition assessment procedures pursuant to Rule 10.556(8).
This management letter is intended solely for the information and use of the Mayor, City Commission,
management, the State of Florida, and is not intended to be and should not be used by anyone other than
these specified parties.
November 21, 2001
Gainesville, Florida ~ G~~
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