The URL can be used to link to this page

Audit Report - 1999-2000FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORTS CITY OF ATLANTIC BEACH ATLANTIC BEACH, FLORIDA SEPTEMBER 30, 2000 FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORTS CITY OF ATLANTIC BEACH ATLANTIC .BEACH, FLORIDA SEPTEMBER 30, 2000 CONTENTS Independent .Auditors' Report General-Purpose Financial Statements Combined Balance Sheet -All Fund Types and Account Groups Combined Statement of Revenues, .Expenditures . and Changes in Fund Balances -All Governmental Fund Types and Expendable Trust Fund Combined Statement of Revenues, Expenditures ..and Changes in Fund Balances -Budget and . Actual -All Governmental Fund Types Combined Statement of Revenues, Expenses and Changes in Retained Earnings -All Proprietary Fund Types Combined .Statement of Cash Flows -All Proprietary Fund Types Combined Statement of Changes in Plan Net Assets - Pension Trust Funds Notes to Financial Statements Required Supplementary Information Schedules of Funding Progress Schedules 'of Contributions From Employer and Others Combining and Individual Fund Statements and Schedules General Fund Schedule of Expenditures -Budget and Actual Special Revenue Funds Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances Page 1-2 3-4 5 6-7 8 9-10 11 12-29 30 31 32-33 34-35 36-37 FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORTS CITY OF ATLANTIC BEACH ATLANTIC BEACH, FLORIDA SEPTEMBER 30, 2000 CONTENTS (Continued) .Combining and Individual Fund Statements and Schedules (Concluded) Proprietary Fund Types -Enterprise Funds Combining Balance Sheet Combining Statement of Revenues, Expenses and Changes in Retained Earnings Combining Statement of Cash Flows Schedules of Net Revenues in Accordance With Bond Resolutions Fiduciary Fund Types Combining Balance Sheet Additional Information Bond Covenant Continuing Disclosures Selected Financial Information and Operating Data Regarding the System: Historical Revenue 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 Report on Sewerage System Capital Improvement Account Independent Accountants' Report Other Pension Schedules Computed Pension Contribution Comparative Schedule. Pension Revenues By Source and Expenses By Type Page 38-40 41-43 44-49 50 51 52 53 54 55 56 57 57 58 59 60 r-- ~ " ry FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORTS CITY OF ATLANTIC BEACH '" ATLANTIC BEACH, FLORIDA _ SEPTEMBER 30, 2000 r ! CONTENTS (Concluded) . Additional Elements of Report Prepared in Accordance With ~-- Government Auditing Standards; Issued By the Comptroller General of the United States; and the Rules of the Auditor ~- General of the State of Florida Schedule of Expenditures of Federal Awards and State ' ~ Financial Assistance r:. Independent Auditors' Report on Compliance and on Internal . ~. ' Control Over Financial Reporting Based on an Audit of 1,,. General-Purpose Financial Statements Performed in Accordance With Government Auditing Standards ;.; ~ Independent Auditors' Report on Examination of Management's Assertion About Compliance With Specified Requirements Management Letter w Page 61-62 63-64 65 66-67 I INDEPENDENT AUDITORS' REPORT ..• -Honorable Mayor, City Commission and City Manager -City of Atlantic Beach ~, Atlantic Beach, Florida ,-:., We have audited the accompanying general-purpose financial statements of the City of Atlantic Beach, Florida as of September 30, .2000; 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 i audit. 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general-purpose financial statements 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, 2000, and the results of. its operations and the cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. r In accordance with Government Auditing Standards, ;we have also issued a report dated November 17, 2000, 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. .~* P 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 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 i ~ MEMBERS OF AMERICAN ANO FLORIDA INSTIMES OF CERTIFIED PUBUC ACCOUNTANTS ~ MEMBER OF AMERICAN INS7IME OF CERTIFIED PUBUC ACCOUNTANTS PRIVATE COMPAMES ANO S.EC. PRACTICE SECTIONS 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, 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 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 17, .2000 (~~u~~ q~~ ~O7n~G2~~~~ ~~ Gainesville, Florida J`~ ~ r r I 2 r I^ ~., .. .~ r i .»~ I r :_. - ;.. . ~ ~ 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. `,... 1. ~:- . .,.w i r f COMBINED BALANCE SHEET. ALL FUND TYPES-AND ACCOUNT GROUPS SEPTEMBER 30, 2000 CITY OF ATLANTIC BEACH, FLORH)A ' FIduciary Account Groups Governmental Fund Types Proprietary Fun d Types - Fund Types General General Totals Special Debt Capital Internal Trust and Long-Term Fixed (Memorandum Only) General Revenue Service Protects Enterprise Service Agency Obligations Assets 2000 1999 Assets Cash and Cash Equivalents $ 4,338,171 $ 1,453,974 $ 117,853 $ 544,639 $ 6,563,713 $ 48,694 $ 276,118. $ 13,343,162 $ 14,331,577 Investments 0 .8,860,069 8,860,069 9,666,639. Accounts Receivable (Net of Allowances) 260,202 332,136 592,338 671,235 Special Assessment Receivable - Current 75,000 ~ 75,000 105,000 Note Receivable -Current 10,362 10,362 10,362 Due From Other Funds 98,843 98,843 73,998 Due From Other Governments 236,106 147,117 25,000 375,000 783,223 486,492 Inventories 11,697 57,530 69,227 59,307 Other Current Assets 25,343 25,343 50,736 Restricted Assets: Cash and Cash Equivalents 7,910,819 7,910,819 8,817,630 Interest Receivable 188,872 188,872 237,022 Special Assessment Receivable - Long-Term 388,899. _ 388,899 433,874 Note Receivable -Long-Tenn ~ 67,354 67,354 77,717 Property, Plant and Equipment - Net 21,667,987 144,445 $ 8,065,267 29,877,699 30,821,062 Construction-in-Progress 6,526,537 ~ 1,022,000 7,548,537. 4,145,701. Unamortized Loan Costs - 438,552 ' 438,552 457,492 Amount Available in Other Funds For Payment of Long-Term Debt $ 117,853 117,853 121,089 Amount to be Provided For .. Payment of Long-Tenn Debt ~ 1,342,241 1,342,241. 1,499,642' Amount to be Provided For - ' Payment of Long-Term Portion _ of Compensated Absences 246,914 246,914 214,013 Total Assets $ 4,945,019 $ 1,601,091 $ 117,853 $ 569,639 $ 44,628,104 $ 193,139 $ 9,136,187 $ 1,707,008 $ 9,087,267 $ 71,985,307 72,280,588 See accompanying notes. _ 3 COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 2000 - CITY OF ATLANTIC BEACH, FLORIDA (Concluded) - Fiduciary Account Groups Governmental Fund Types Proprietary Fund Types Fund Types General General Totals . Special Debt Capital Internal Trust and Long-Term .. Fined (Memorandum Only) General Revenue Service. Projects Enterprise Service Agency - Obligations Assets . 2000 1999 Liabilities and Fund Equity Liabilities Accounts Payable and Accrued Liabilities $ 224,079 $ 2,424 $ 46,412 $ 169,726 $ 64,956 $ 32,081 ~ $ .539,678 $ - 1,058,115 Due to Other Funds 98,843 98,843 73,998 Due to Other Governments 0 - 270 Deposits - 300,570 300,570 299,347 Defernd Revenue 52,408 - 52,408 95,937 Current Liabilities (Payable From Restricted Assets): Accounts Payable 63,018 63,018 236,085 Revenue Bonds Payable - Cumnt - Portion 476,318 476,318 473,926 Interest Payable ~ 600,941 600,941 610,279 Revenue Bonds Payable 21,989,073 $ 1,460,094 23,449,167 24,053,630 Accrued Compensated Absences - 67,676 59,668 246,914 374,258 324,241 Total Liabilities 224,079 101,267 $ 0 46,412 23,719,730 124,624 32,081 1,707,008 $ 0 25,955,201. 27,225,828 Frmd Equity - Contributed Capital 6,748,937 ' 6,748,937 6,547,571 Investment in General Fined Assets 9,087,267 9,087,267 8,320,907 Retained Earnings: - Reserved For Renewal and Replacement 500,000 500,000.. 500,000 - Reserved For Debt Service 1,068,706 1,068,706. 1,073,552 Unreserved Retained Earnings ~ 12,590,731 68,515 12,659,246 12,181,484 Fund Balances: Reserved For Payment of Long-Term Debt ~ ~ 117,853. 117,853: 121,089 Reserved For Police Training and • Other Expenditures - 178,458 178,458 169,973 Reserved For Retirement 8,925,648 8,925,648 ' 9,898,404 Other Reserves 47,540 1,499,824 397,926 1,945,290 1,675,743 Designated Fund Balances ~ 0 74,673 Unrescrved Fund Balances - 4,673,400 125,301 4,798,701 4,491,364 Total Fund Equity - 4,720,940 1,499,824 117,853 523,227 20,908,374 68,515 9,104,106 . 0 9,087,267 .46,030,106 . 45,054,760 Total Liabilities and Fund Equity • $ 4,945,019 $ 1,601,091 $ 117,853 $ 569,639 $ 44,628,104 $ 193,139 $ 9,136,187 $ • 1,707,008 $ 9,087,267 $ 71,985,307 $ 72,280,588 See accompanying notes. 4 COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND FOR THE YEAR ENDED SEPTEMBER 30, 2000 CITY OF ATLANTIC BEACH, FLORIDA Revenues Taxes Licenses and Permits State-Shared Revenues Other IntergovetmnentalRevenues 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 (T'otal Expenditures) Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Operating Transfers In Operating Transfers Out Proceeds of Refunding Issue Advance Refunding 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 Fund Types Fund Tot als Special Debt Capital Expendable (1~4emorandum Only) General Revenue Service Projects Trust 2000 1999 $ 3,040,814 $ 536,018 $ 0 $ 0 $ 0 $ 3,576,832 $ 3,386,474 ' 231,357 0 0 0 0 231,357 215,920. 1,544,583 0 0 0 0 1,544,583. 1;430,313 351,385 126,808 0 262,217 0 740,410 714,503 143,896 0 0 0 0 143,896 143,853_ 138,043 0 0 0 .24,572 162,615_ 255,006 270,569 85,550 4,847 25,856 11,065 397,887 319,535 78,153 4,392 0 0 0 82,545 44,289 5,798,800 752,768 4,847 288,073 35,637 6,880,125 6,509,893 584,332 80,552. 0 0 0 664,884 _ 731,651 3,460,371 64,246 0 0 22,567 3,547,184 3,452,860 1,082,662 307,089 0 0 0 1,389,751. 1,032,392 470,117 0 0 0 0 470,117 334,357 0 .0 160,636 0 0 160,636 132,803 0 0 71,944 0 0 71,944 69,771 0 0 0 628,439 ~ 0 628,439 539,129 (5,597,482) (451,887) (232,580) (628,439) (22,567) (6,932,955) (6,292,963) 201,318 300,881 (227,733) (340,366) 13,070 (52,830) 216,930- 624,740 6,625 224,497 ' ..365,426. 1,540 1,222,828 1,018,796 (411,951) (244,462) 0 0 (6,125) (662,538) (567,937) 0 0 0 0 0 0 793,433 0 0 0 0 0 0 (793,433) 212,789 (237,837) 224,497 365,426 (4,585) 560,290 450,859 414,107 63,044 (3,236) 25,060 8,485 507,460 667,789 4,306,833 1,436,780- 121,089 498,167 169,973 6,532,842 5,865,053 $ 4,720,940 $ 1,499,824 $ 117,853 $ 523,227 $ 178,458 $ 7,040,302 $ 6,532,842 See accompanying notes. 5 1 ~. ! i { ~ 1~ { f COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL ALL GOVERNMENTAL FUND TYPES - - ~ FOR THE YEAR ENDED SEPTEMBER 30,.2000 CITY OF ATLANTIC BEACH, FLORIDA Revenues Taxes Licenses and Permits State-Shared Revenues Other Intergovetnmenfal Revenue Charges For Services Fines and Forfeitures Interest Income Miscellaneous Revenue Totai 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 (ilnder) Expenditures and Other Financing Uses Fund Balances, October 1, 1999 Fund Balances, September 30, 2000 Page 1 of 2 Pages General Fund Special Revenue Funds Debt Service Fund Variance - Variance Variance Favorable Favorable Favorable Budget Actual (Unfavorable) Budget. Actual (Unfavorable) Budget Actual (Unfavorable) $ 2,909,430 $ 3,040,814 $ 131,384 $ 510,040 $ 536,018 $ 25,978 $ 0 $ 0 $ 0 189,200 231,357 42,157 0 0 0 0 0 0 1,446,494 1,544,583 98,089 0 0 0 0 0 0 456,671 351,385 (105,286) 211,231 126,808 (84,423) 0 0 0 150,675 143,896 (6,779) 0 0 0 0 -0 0 78,000 138,043 60,043 0 0 0 0 0 0 165,000 270,569 105,569 37,000 85,550 48,550 1,000 4,847 3,847 28,710 78,153 49,443 5,000 4,392 (608) 0 0 0 5,424,180 5,798,800 374,620 763,271 752,768 (10,503) 1,000 4,847 3,847 840,367 584,332 256,035. 175,806 80,552 95,254 0 - 0 0 3,599,423 3,460,371 139,052 74,655 64,246 10,409 0 0 0 1,375,609 1,082,662 292,947 457,228 307,089. 150,139 0 0' 0 491,019 470,117 20,902 0' 0 0 0 0 0 0 0 ~0 0 .0 0 160,637 160,636 1 0 0 0 0 0 0 71,955 71,944 11 0 - 0 0 0 0 0 0 0 0 (6,306,418) (5,597,482) 708,936 (707,689) (451,887) 255,802 (232,592) (232,580) 12 (882,238) 201,318 1,083,556 55,582 .300,881 245,299 (231,592) (227,733) . 3,859 624,740 624,740. 0 6,625 6,625 0 224,497 224,497 0 (407,941) (411,951) (4,010) (244,461) (244,462) (1) 0 0 0 216,799 212,789 (4,010) (237,836) (237,837) (1) 224,497 224,497 0 $ (665,439) 414,107 $ 1,079,546 $ (182,254) 63,044 $ 245,298 $ (7,095) (3,236) $ 3,859- 4,306,833 1,436,780 121,089 $ 4,720,940 $ 1,499,824 $ 117,853 See accompanying notes. 6 . Revenues Taxes Licenses and Petntits State-Shared Revenues Other Intergovernmental Revenue 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 Tratsfers 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, 1999 Fund Balances, September 30, 2000 COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL ALL GOVERNMENTAL FUND TYPES FOR THE YEAR ENDED SEPTEMBER 30, 2000 ' CITY OF ATLANTIC BEACH, FLORIDA Page 2 of 2 Pages Capital Projects Funds Totals (Memorandum Only) Variance Variance Favorable Favorable - Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 0 $ 0 $ 0 $ 3,419,470 $ 3,576,832 $ 157,362 0 0 0 ~ 189,200 231,357 .42,157' 0 0 0 1,446,494 1,544,583. 98,089. 262,218 262,217. (1) 930,120 740,410 (189,710) 0 0 0 150,675 143,896 (6,779) 0 0 0 78,000 .138,043 , 60,043 7,500. 25,856 18,356 210,500 386,822 176,322 - 0 0 0 33,710 82,545 48,835 269,718 288,073 18,355 6,458,169 6,844,488 386,319 • 0 0 0 1,016,173 664,884 351,289 . 0 0 0 3,674,078. 3,524,617 149,461 0 0 0 1,832,837 1,389,751 443,086 0 0 0 491,019 470,117 20,902 . 0 0 0 160,637 160,636 1 0 0 0 71,955. 71,944. 11 • 730,431 628,439 101,;'92 730,431 628,439 101,992" (730,431) (628,439) 101,992- (7,977,130) (6,910,388) 1,066,742 (460,713) (340,366) 120,347 (1,518,961) (65,900) 1,453,061 365,426 365,426 0 1,221,288 1,221,288 0 0. 0 0 (652,402) (656,413) (4,011) 365,426 365,426 0 568,886 564,875 (4,011) $ (95,287) 25,060 $ 120,347 $ (950,075) 498,975 $ 1,449,050 498,167 6,362,869 $ 523,227 $ 6,861,844 See accompanying notes 7 r-- ~." 1 ., { r-• i i r- ~, *,,. r- r 1 COMBINED STATEMENT.OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ` ALL PROPRIETARY FUND TYPES FOR THE YEAR ENDED SEPTEMBER 30, 2000 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 Heat, Light and Power Depreciation • Other Expenses (Total Operating Expenses) Operating Income (Loss) Nonoperating Income (Expenses) Connection Charges Sewer Generation Charges Interest Income Interest Expense Loss on Disposal of Fixed Assets . Amortization of Loan Costs Total Nonoperating Income (Expenses) Net Income (Loss) Before Operating Transfers Other Financing Sources (iJses) Operating Transfers In Operating Transfers Out Total Other Financing (Uses) Sources Net Income (Loss) Depreciation on Fixed Assets Acquired By State- Shared Revenues Externally Restricted For Capital Acquisition r-- Increase (Decrease) in Retained Earnings • Retained Earnings, Beginning of Year '" Retained Earnings, End of Year • Totals Internal (Memorandum Only) Enterprise Service ' 2000 1999 $ 0 $ 1,644,655 $ 1,644,655 $ 1,365,172 6,202,161- 0 6,202,161 5,875,318 417,192 ~ 972 418,164 350,283 6,619,353 1,645,627 8,264,980 7,590,773 1,038,308 1,085,433 2,123,741 1,902,735 1,513,769 228,973 1,742,742 1,945,939 278,572 34,371 312,943 336,537 121,595 80,059 201,654 169,488 373,558 7,296 380,854 321,949 1,225,187. 3 6 ,991. .1,262,178 .1,261, 805 1,203,241 .200,629 1,403,870 1,252,241 (5,754,230) (1,673,752) (7,427,982) '(7,190,694) 865,123 (28,125) 836,998 400,079 187,786 0 187,786 213,913 135,465 0 135,465 132,109 494,505 0 494,505 489,715 (788,653) 0 (788,653) (846,433) 0 0 0 ' (15,209) (18,940) 0 (18,940) (18,629) 10,163 0 10,163 (44,534) 875,286 (28,125) 847,161 355,545 27,227 , _ 20,671 47,898 ..'805,707 (654,508) 0 (654,508) (1,293,112) (627,281) 20,671 (606,610) (487,405) 248,005 (7,454) 240,551 (131,860) 232,365 ~ 0 232,365 232,365 480,370 (7,454) 472,916 100,505 13,679,067 75,969 13,755,036 13,654,531 $ 14,159,437 '$ , 68,515 $ 14,227,952 $ 13,755,036 See accompanying notes. ::. 8 COAZBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES FOR THE YEAR ENDED SEPTEMBER 30, .2000 . CITY OF :ATLANTIC. BEACH, FLORIDA Totals Internal (A7iemorandum Only) Enterprise Service 2000 1999 Cash Flows From Operating Activities Operating Income (Loss) $ 865,123 $ (28,125) $ 836,998 $ 400,079 Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided By (Used In) Operations: Depreciation and Amortization 1,244,127 36,991 1,281,118 1,280,434 Changes in Assets - (Increase) Decrease: Accounts"Receivable 75,114 2,388 77,502 33;180. Due From Other Governments (375,000) 0 (375,000) 0 Prepaid Expenses 0 0 0 19,865 Inventory (7,521) ~ 0 (7,521) 21,677 Changes in Liabilities -Increase (Decrease): Accounts Payable and Accrued Liabilities (527,299) (20,639)- (547,938) .661,701 Customer Deposits 1,223 0 1,223 10,902 Deferred Revenue (43,529) ~ . 0 (43,529) 50,943 Net Cash Provided By (Used In) Operating . Activities 1,232,238 (9,385) 1,222,853 2,478,781 Cash Flows From Noncapital hinancing Activities Connection Charges 187,786 0 187,786 213,913 Sewer Generation Charges 135,465 0 135,465 132,109 Operating Transfers In From Other Funds 27,227 20,671. 47,898 805,707 Operating Transfers Out to Other Funds, (654,508) 0 (654,508) (1,293,112) . 1\'et Cash (iJsed In) Provided By Noncapital . Financing Activities ~ (304,030). 20,671 (283,359) (141,383) 'Cash Flows From Capital and Related Financing . Activities Loan Costs 0 0 0 (9,026) Collections on Interest Receivable 73,543 0 73,543 1,086 ' Collections on Note Receivable 10,363 0 10,363 .10,362 Collections on Special Assessments ~ ~ 74,975 0 74,975 108,651 Contributed Capital 433,731 0 433,731 69,399 Property, Plant and Equipment Additions (2,934,291) (7,438) (2,941,729) (2,578,436) Additional Borrowing 0 0 0 1,010,934 Principal Payments on Bonds and Notes Payable (473,926) 0 (473,926) (1,376,751) Interest Paid (798,001) 0 (798,001) (843,956) Net Cash (Used In) Capital and Related Financing Activities (3,613,606) ~ (7,438) (3,621,044) (3,607,737) .Cash Flows From Investing.Activities Interest Income 494,505 0 494,505 489,715 Net (Decccase) Increase in Cash and Cash ~ . Equivalents (2,190,893) 3,848 (2,187,045) (780,624) Cash and Cash Equivalents, Beginning of Year 16,665,425 44,846 16,710,271 17,490,895. Cash and Cash Equivalents, End of Year $ 14,474,532 $ 48,694 $ 14,523,226 $ 16,710,271 See accompanying notes. 9 r - i - COMBINED STATEMENT OF. CASH FLOWS . ALL PROPRIETARY FUND TYPES FOR THE YEAR ENDED SEPTEMBER 30, 2000 ~^ CITY OF ATLANTIC. BEACH, FLORIDA t (Concluded) - Totals ~ Internal (Memorandum Only) - Enterprise Service 2000 1999 Balance Sheet Components of Cash and -~ Cash Equivalents Cash and Cash Equivalents $ 6,563,713 $ 48,694 $ 6,612,407 $ , 7,892,641 Restricted Assets: ~, ~ Cash and Cash Equivalents 7,910,819 0 7,910,819 8,817,630 Total Cash and Cash Equivalents -End -.. of Year $ 14,474,532 $ 48,694 $ 14.523.226 $ 16.710.271 $ 72,697 $ 0 $ 72,697 $ 20,528 See accompanying notes. 10 - NOTES TO FINANCIAL STATEMENTS CITY OF ATLANTIC BEACH, FLORIDA (Continued) Note 1 - .. Summary of Significant Accounting Policies (Continued) Fund Accounting (Continued) "~" • ^ Goverrunental 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 ~tlie 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. - 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 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-tenor 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 . "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 i\'OTES 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 fund level. Encumbrances are recorded. Unexpended items which are unencumbered at year end must lie 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 market, except for the AMBAC investment which is valued at cost (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- f"" ~ NOTES TO FINANCIAL STATEMENTS CITY OF ATLANTIC BEACH, FLORIDA (Continued) ` . ,.-. Note 1 - ~ Summary of Significant Accounting Policies (Continued) r Receivables i Receivables are recorded at their net realizable value. The, allowance for uncollectible accounts and assessments ~at September 30; 2000, in the enterprise funds is $557,048. ~- f r- 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. During the year, inventory in the general fund is recorded as an expenditure at the time of .purchase (purchase method) and converted to the consumption method for financial statement purposes. 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-fine method over their-estimated useful lives as follows: r T`- 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 accounted for in the general fixed assets account group rather than in governmental ,funds. 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 capitalized. 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 rccordcd 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 r" NOTES TO FINANCIAL .STATEMENTS CITY OF ATLANTIC BEACH, FLORIDA . (Continued) ' ~- ~, Note 1 - Summary of Significant Accounting Policies (Concluded) - r-~ 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, 2000, are as follows: ~~ ' Special Revenue Funds r... ~ Road and Street Expenditures - $1,427,332 ~~ ~ Tourism and Recreation 47,650 ' ~ Tree Replacement . , 22,009 ,~' ~ Public Safety 2,833 ~ Total Special Revenue Funds ~ $1,499,824 ~,_, Capital Projects Fund . j Streets and Drainage Projects ~ $ 234,786 Tourism and Recreation ~ 163,140 ' Total Capital Projects Funds $ 397,926 r . General Fund Inventory $ '11,697 ^' ~ Special Event -First Night 35,843 '. Total General Fund $ 47,540 r Reserves recorded in the enterprise funds are created by the existence of assets restricted for `~ debt service, construction, and renewals and replacements. The City Commission may also designate certain amounts of year end fund balance for~various projects. r~ ~ . Total Columns on Combined .Statements Total columns on the combined financial statements are captioned "Totals (Memorandum r-- 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 1999 are presented for the purpose of additional analysis and are not a required part of the general-purpose financial statements. ~"' I 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 i transferred to the pension custodian are held separately from those of other City funds and r,-, are required to be administered by an investment manager. . ` 18 r. NOTES TO FINANCIAL STATEMENTS CITY .OF ATLANTIC BEACH, FLORIDA (Continued) Note 2 - Cash and .Investments (Continued) .. At September 30, 2000, the- carrying amount of cash on hand and on deposit with banks, including interest-bearing deposits was $30,013, and the' related bank balance was $28,063. 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 Chapter 280, Florida Statutes, which allows 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, 2000, 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 NationsBank Repurchase Agreement is invested in . the Nations Treasury Fund 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. On March 26, 1996, in conjunction with the issuance of the City's Utilities System Revenue Bonds, Series, 1996, the City purchased investments (valued at approximately 104 % of cost) from AMBAC Capital under a repurchase agreement which were placed in a custodial account administered by Bank of New York. These funds are drawn down for eligible ' construction expenditures. The City receives a guaranteed 5.75 % interest rate. AMBAC can repurchase the investments and "exchange" them for other investments as long as the market'value is at least 104% to 105% of the City's cost, depending on the type of security. . These investments are government-backed mortgage securities and are considered category one credit risk as they are held by a third party custodial agent. At September 30, 2000, ' these investments had a cost of $6,336,341 and a market value of $6,823,030. 19 r- ,r r r *" r- ~. r r Note 2 - NOTES TO FINANCIAL STATEAZENTS CITY OF ATLANTIC BEACH, FLORIDA (Continued) Cash and Investments (Concluded) . The total cash and investment balance of the City at September 30, 2000, is comprised of the following items: Cash Petty Cash on Hand $ 1,950 Checking 28,063 Total Cash 30,013 Pension Trust Investments SunTrust Short-Term Treasury Portfolio 286,439 SunTrust High-Grade Equity Fund ~ 2,242,418 SunTrust High-Grade Equity Income Fund ~ 1,961,646 SunTrust High-Grade Bond Fund 3,319,364 Merrill Lynch International Mutual Fund 1,050,202 Total Pension Trust Investments 8,860,069 Other Investments AMBAC Capital Funding Inc. Repurchase Agreement 6,336,341 NationsBank Repurchase Agreement 1,205,339 Investment With State Board of Administration 13,682,288 Total Other Investments ' 21,223,968 Total Cash and Investments 30,114,050 (Restricted Cash and Investments) (7,910,819) Total Unrestricted Cash and Investments $ 22,203,231 Restricted cash and investments at September 30, 2000, in the enterp rise funds follows: Enterprise Fund Utility Fund Renewal and Replacement $ 500,000 $ Construction Debt Account Service Total 6,342,113 $ 1,068,706 $ 7,910,819 Note 3 - Special.Assessments 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. During 1998, the City 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 . plus interest at 6.00%. Initial assessments are based on front footage. 20 NOTES TO FINANCIAL STATEMENTS CITY OF ATLANTIC BEACH, FLORIDA (Continued) Note 3 - Special Assessments (Concluded) 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 -` on front footage. Following is a summary of the outstanding balances at September 30, 2000: -- Beach Section H Avenue ~ Other - Assessment Assessments Assessments Total Principal Receivable, September 30, 2000 $ 378,022 $ 46,949 $ 38,928 $ 463,899 _ (Current Portion) ~ (55,290) (14,000) (5,710) (75,000) Principal .Receivable - Noncurrent $ 322,732 $ 32,949 $ 33,218 $ 388,899 Note 4 - 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 2000). 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, 2000: Principal Receivable, September 30, 2000 $ 77,716 (Current Portion) (10,362) Principal Receivable -Noncurrent ~ . $ 67,354 Note 5 - Property, Plant and Equipment A summary of changes in general fixed assets follows: 21 Note 5 - NOTES TO FINANCIAI; STATEMENTS .CITY OF ATLANTIC BEACH, FLORIDA (Continued) Property,. Plant and Equipment (Concluded) Balance Transfers Balance 10/1199 Additions (Disposals) In/(Out) 9130100 Land $ 1,424,707 $ 92,148 $ 0 $ 0 $ .1,516,855 Buildings 2,866,027 19,870 0 0 2,885,897 Improvements Other Than Buildings 1,257,980 0 0 . 0 1,257,980 Equipment 2,401,828 183,965 (181,258) 0 2,404,535 Construction-in-Progress 370,365 651,635 0 0 1,022,000 Total Property, Plant and Equipment $ 8,320,907 $ 947,618 $ - (181,258) $ 0 $ 9,087,267 A summary of fixed assets of the enterprise funds at September 30, 2000, follows: Utility Fund Bond Total Total Rater Sewer Stormwater Construction Utility Sanitation Enterprise System System System Account Fund Fund Funds ' Land $ 51,865 $ 697,634 $ 0 $ 0 $ 749,499 $ 0 $ 749,499 Intangible Plant 0 -0 226,913 0 226,913 0 226,913 .Buildings 504,433 3,750,541 0 0 4,254,974 ~ 0 4,254,974 Improvements Other Than Buildings 9,466,793 17,156,894 490,029_ 0 27,113,716 0 27,113,716 ' Machinery and Equipment 496,945 668,299 120,825 0 1,286,069 31,874 1,317,943 (Accumulated Depreciation) (3,930,101) (7,859,533) ((79,661) 0 (1 1,969,295) (25,763) ((1,995,058). Construction-in- Progress 705,698 686,934 328,218 4,805,687 6,526,537 0 6,526,537 Totals $ 7,295,633 $ 15,100,769 986,324 $ 4,805,687 28,188,413 $ 6,111 $ 28,194,524 Note 6 - . Long-Term Obligations . The following is a summary of the long-term obligations of the City for the year ended September 30, 2000: General Long-Term Obligations Proprietary Absences Fund Types , Revenue Compensated Revenue Bonds Absences Bonds Total Obligations Payable at October 1, 1999 $ 1,620,731 $ 214,013 $ ~ 23,450,933 $ 25,285,677 Additional Borrowing 0 32,901 0 32,901 (Principal Retired) (160,637) 0 (473,926) (634,563) Obligations Payable at September 30, 2000 $ 1,460,094 $ 246,914 $ 22,977,007 $ 24,684,015 22 NOTES TO FINANCIAL STATEMENTS CITY OF ATLANTIC BEACH, FLORIDA . (Continued) Note 6 - Long-Term Obligations (Continued) ~ . Bonds Payable Bonds payable 'are comprised of the following: . 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. $ 22,030,000 _ SunTrust Revenue Bonds, Series 1996 1996 Capital Improvement Bonds, Payable in Quarterly Installments of Principal and Interest Through . January 1, 2006, Bearing Coupon Rates of 4.40% to . _ 5.85 %. 702,189 SunTrust Re~•enue 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. 1,704,912 - Total Bonds Payable 24,437,101 (UnamoTtized Discount) ~ (494,940) (Llnamortized Refunding Loss) (16,676) .... .Net Bonds Payable $ 23,925,485 Reported on balance sheets as follows: General Long-Term Obligations .. $ 1,460,094 Revenue Bonds -Current Portion 476,318 ~ . Revenue Bonds -Noncurrent Portion _ 21,989,073 Net Bonds Payable $ 23,925,485 The annual requirements to amortize all debts outstanding (exclu ding accrued compensated ` absences) at September 30, 2000, are as follows: General Long-Term Obligations ~ - ' Account Group Proprietary Fund Types 9/30 Principal Interest Tota- Principal lntcrest Total 2001 $ 155,327 $ 64,920 $ 220,247 $ 476,318- $ 1,204,822 $ 1,681,140 2002 162,345 58,015 220,360 498,385 1,183,801 1,682,186 2003 , 169,738 50,214 219,952 520,218 1;161,268 1,681,486 2004 177,552 41,968 219,520 541,915 1,137,345 1,679,260 2005 188,175 32,754 .. 220,929 571,164 1,134,768 1,705,932 - Thereafter 606,958 - 108,897 715,855 20,369,007 13,527,523 33,896,530. Total $ 1,460,095 $ 356,768 $ 1,816,863 $ 22,977,007 $ 19,349,527 $ 42,326,534 23 ~ NOTES TO FINANCIAL STATEMENTS CITY OF ATLANTIC BEACH, FLORIDA (Continued) ~ _ i Note 6 - Long-Term Obligations (Concluded) ~- Interest Interest paid or incurred during the year ended September 30, 2000, was $71,944 in the debt ' service fund, and $1;259,963 in the .enterprise funds. Of the amount incurred in the , r... enterprise funds, $471,310 was capitalized. In addition, interest earnings of $398,613 were i capitalized. t,.., Note _7 - Defined Benefit Pension Plans 1 ' Plan Descriptions and Contribution Information ' The City maintains two separate single-employer pension plans, .one for police officers and one for general employees, which cover substantially all full-time City employees.. In addition, the City previously maintained a fire fighters pension plan. On January 27, 2000, . the City transferred the net assets of the fire fighters pension plan to the City of Jacksonville, '~~ Florida's fire pension system. The City's fire fighters had previously become employees of ~ the City of Jacksonville, Florida, which now provides fire protection services within the City limits. r Membership of each plan consists of the following at September 30, 1999, the date of the latest actuarial valuation: r' ~ General Employees Police j" Retirees and Beneficiaries Receiving Benefits 23 8 Terminated Plan Members Entitled to But Not Yet Receiving Benefits 10 3 r-' Active Plan Members ~ - 70 25 r ~ Total 103 36 r-- 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 r.-; 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. r ' 24 .-, ~ _ NOTES TO FINANCIAL STATEMENTS CITY OF ATLANTIC BEACH, FLORIDA . (Continued) Note 7 - Defined Benefit Pension Plans (Continued) Police Retirement Plan (Concluded) ^ 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. 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: Employees ~ Police Annual Required Contribution (ARC) $ 259,414 $ 179,988 Interest on Net Pension Obligation 0 0 Adjustment to ARC 0 0 Annual Pension Cost 259,414 179,988 (Contributions Made) (259,411) (180,020) Net Pension Obligation; Beginning of Year 1 (10,573) Net Pension Obligation, End of Year. $ 4 $ (10,605) Other Pension Plan Information The annual required contributions for the current year were determined as part of the September 30, 1999, 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 9 to 28 years. Three-Year Trend Information Fiscal Year Ended General Employees September 30, 1998 September 30, 1999 September 30, 2000 Annual Pension Cost (APC) $ 250,417 257,597 259;414 Percentage Net of APC Pension Contributed Obligation 100 % $ 1 100 % 1 100 % 4 25 ~ .. NOTES TO FINANCIAL STATEMENTS . CITY OF ATLANTIC BEACH, .FLORIDA (Continued) . r- Note 7 - Defined Benefit Pension Plans (Concluded) _. r Three-Year.-Trend Informatio n (Concluded). t~ ' ~ Annual Percentage Net r-, Pension of APC Pension Fiscal Year Ended Cost (APC) Contributed Obligation Police ~ : September 30, 1998 $ .171,596 100%a $ (10,617) . . September 30, 1999 168,846 100% ~ (10,573) ~ September 30, 2000 ~ 179,988 100% (10,605) Note 8 - Interfund Transactions Reconciliation ,... A summary of interfund transfers during the fiscal year ended September 30, 2000, is as .-.. follows: Transfers Out Amount Fund Receiving Transfer General Fund ''" General Fund $ .140,383 ,Debt Service General Fund 206,618 ,Capital Projects , General Fund 46,320 Pension Trust ~' General Fund 18,130 Internal Service General Fund 500 Special Revenue -Miscellaneous Grants Total General Fund 411,951 r.. _ Special Revenue Funds ' Local Option Gas Tax 84,114 Debt Service Convention Development Tax 158,808 Capital Projects Police Grants, ' 1,540 Police Trust ' Total Special Revenue Funds 244,462 . Enterprise Funds ~ Sanitation Fund 739 Internal Service ,,,, Utility Fund 1,802 Internal Service , Sanitation Fund 20,832 Utility Fund • Utility Fund 417,760 General ~ Sanitation Fund 206,980 General ~ ~ '~ Total Enterprise Funds 648,113 Expendable Trust Fund . r Police Trust Fund 6,125 Special Revenue -Police Grants ~ ~ Total $ 1,310,651 , 26 NOTES TO FINANCIAL STATEMENTS ' CITY OF ATLANTIC BEACH, FLORIDA (Continued) Note 8 - Interfund Transactions Reconciliation (Concluded) A summary of interfund receivables/payables due from/to the general fund at September 30, 2000, is as follows: Due From/To Special Revenue Funds Miscellaneous Grants $ 68,289 . Police Grants 30,554 Total $ 98,843 Note 9 - Changes in Contributed Capital Following is a~summary of changes in contributed capital for the year ended September 30, 2000: Balance, October 1, 1999 $ 6,547,571 Additions: Wastewater Improvements 408,731 Stormwater Improvements 25,000 (Amortization) " (232,365) Balance, September 30, 2000 $ 6,748,937 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 addit ion, 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, 2000, is as follows: Total UtilitySanitation Enterprise Fund Fund Funds Operating Revenues $ 5,451,205 $ 1,168,148 $ 6,619,353 Depreciation ~ 1,222,856 2,331 1,225,187 Operating Income 566,191 298,932 865,123 Nonoperating (Loss) Income. (18,978) 29,141 10,163 Net Operating Transfers (Out) (398,730) (228,551) (627,281) Net (Loss) Income 148,483 99,522 248,005 Net Property, Plant and Equipment ~ 21,661,876 6,111 21,667,987 .. Special Assessment Receivable: . Long-Term 388,899 0 388,899 Net Working Capital 6,374,204 489,871 6,864,075 Property, Plant and Equipment Additions 2,931,592 2,699 2,934,291 Long-Term Debt 21,989,073 0 21,989,073 Total Equity 20,412,392 495,982 20,908,374 Total Assets 44,131,997 496,107 44,628,104 27 NOTES TO FINANCIAL STATEMENTS ' ~ CITY OF ATLANTIC .BEACH, FLORIDA (Continued) ' , r ~ ~ 'Note 11 - Joint Venture r 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 l and use thereof. ~, ~ The construction of the outfall lines and disposal facilities were funded by the municipalities in the following proportions: r,;.,; Atlantic Beach 33.06% Jacksonville Beach 55.78 .Neptune Beach 11.16 Total 100.00% .-. 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 r" cost of the joint venture on the City's books is approximately $615,000. The project was E - completed in 1986 and depreciation (using the straight-line method over 25 years) began in 1987. ~. i '. 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 r- participating municipalities in the percentages noted above. During 2000, no funds were .expended related to this project. . r"' ~ ~ Note 12 - Commitments r-- As of September 30, 2000, the City had outstanding commitments on contracts in progress 1 as follows: Unexpended Contract Project Type ~ Amounts ~ Water System Improvements $ 425,000 ' Wastewater System Improvements 1,700,000 Stormwater System Improvements - ~ 85,000 ~_, Parks and Recreation Projects 30,000 ~~ . ,_„ . 28 .~ NOTES TO FINANCIAL STATEMENTS CITY OF ATLANTIC BEACH, FLORIDA (Concluded) 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 amounfs will ever be payable as a result ~of these proceedings.: Note 14 - Risk 11Zanagement The City 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 bismemberment ' ^ General Liability ^ 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 CI TY OF ATLANTIC BEACH, FLORIDA SCHEDULES OF FUNDING PRO GRESS Employees' Retirement Plan**** . (Dollar Amounts are in Thousands) (7) (2) (3) (4) (5) (6) UAAL as (1) AMuarial Entry Age Normal Unfunded Actuarial Funded Annual Percentage Valuation Value of Actuarial Accrued Accrued Liability Ratio Covered of Payroll Date Assets-(AVA) Liability (AAL) NAAL) (3)-C~) I?)/(3) Payroll (4)/(6) 9/30/94 $ 4,549 $ 6,061 $ 1,512 75.1% $ 3,068. 493% 9/30/95 5,546 7,200 1,654 77.04 3,054 54.24 .9/30/96 6,517 8,290 1,773 78.64 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 • 53.94 9!30/98 *** 7,127 9,144 2,017 77.9% 3,007 67.14 General Employees' Retirement Plan (Dollar Amounts are in Thousands) (~) (2) (3) ' (4) (5) (~ 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) NAAL) C3)-(Z) (2)/(3) Payroll (4)1(6) 09/30/99 $ 4,650 $ 5,796 $ 1,146 80.2% $ 2,185 52.4% Police Retirement Plan (Dollar Amounts are in Thousands) ~) (2) (3) (4) (5) (6) UAAL as (1) Actuarial Entry Age Normal Unfunded Actuarial Funded Annual .Percentage Valuation Value o[ . Actuarial Accrued Accrued Liability Ratio Covered .. of Payroll Date Ascots (AVA) Liability (AAL) (UAAL) (3}-Cl) f2)/(3) Payroll (4)/(~ 09/30/99 $ 3,393 $ 4,089 $ 696 83.0% $ 1,018 68.44 * . The actuarial value of assets used before plan year September 30, 1997, was at market value; the asset method used after that daft; 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 weaker. Generally, the greater this percentage, the stronger the plan... The unfunded actuarial accrued 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 .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 9/30 (ARC) Contributed 2000 $ 259,414 100 % Police Retirement Plan Annual Year Required Ended Contributed Percentage 9/30 (ARC) Contributed 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 September 30, 1999 Actuarial Cost Method Entry .Age Actuarial Cost Method Amortization Method Level Percent of Payroll, Closed Remaining Amortization Period . 9 to 28 Years Asset Valuation Method Market Value Through September 30, 1997, and Funding Value After September 30, 1997 Actuarial Assumptions Investment Rate of Return 8.00% Projected Salary Increases 0% to 6.30% Inflation 5.50 % 31 ,._.. .-. r r I ,, r i t r-- r . r I COMBINING AND INDIVIDUAL FUND STATEMENTS ! AND SCHEDULES ~ Combining financial statements provide a more detailed view of the "general-purpose financial statements" i 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. ~,,.... r- r .-~ ~ . ~ . r^ i r.. .- ..., r- i r t r r-- E i r r ~ GENERAL FUND r t'- r r SCHEDULE OF EXPENDITURES BUDGET.AND ACTUAL GENERAL FUND - FOR THE YEAR ENDED SEPTEMBER 30,~ 2000, WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999 CITY OF ATLANTIC BEACH, FLORH)A - 2000 1999 Variance Favorable - Budget Actual (Unfavorable) AMual Expenditures General -Government: Legislative ~ _ Personal Services $ 19,697. $ 19,208 $ 489 $ ; 16,312 Operating Expenses , 5,929 3,427 2,502 6,724 Total Legislative 25,626 22,635 2,991 23,036 Legal Counsel Personal Services 8,440 9,058 (618) 7,876 Operating Expenses 73,000 46,694 26,306 60,230 - Total Legal Counsel 81,440 55,752 25,688 .68,106 Planning and Zoning ~ - Personal Services. 81,936 81,621 315 77,373 Operating Expenses 21,045 13,258 7,787 11,859 Capital Outlay 0 0 0 2,861 Total Planning and Zoning 102,981 94,879 8,102 92,093 -- City Clerk Personal Services 116,209 110,667 5,542 117,608 Operating Expenses 66,942 48,743 18,199 32,354 Capital Outlay 6,500 4,973 1,527 3,670 Total City Clerk 189,651 164,383 25,268. 153,632 Other General Government Personal Services 0 80,142 (80,142) 0 Operating Expenses ~ 190,169 146,671 43,498 191,758 -- Capital Outlay 250,000 19,870 230,130 49,796 Grants and Aids 500 0 500 0 Total Other General Government 440,669 246,683 193,986 241,554 - Total General Government 840,367 584,332 256,035 578,421 .Public Safety: - Law Enforcement Personal Services 1,882,303 1,841,796 40,507 1,600,049 - Operating Expenses 469,538 458,614. 10,924 334,864 Capital Outlay 57,129 49,842 7,287 101,626 Total Law Enforcement 2,408,970 2,350,252 58,718 2,036,539 _ 32 , *- SCHEDULE OF EXPENDITURES ;' ~ BUDGET AND ACTUAL GENERAL FUND r, FOR THE YEAR ENDED SEPTEMBER 30, 2000, ' WITH COMPARATIVE TOTALS FOR SEPTEM BER 30, 1999 ' CITY OF ATLANTIC BEA CH, FLORIDA (Concluded) 2000 1999 ' Variance ~" Favorable f - Budget Actual (Unfavorable) Actual Expenditures (Concluded) ~"' Public Safety: (Concluded) r- Fire Control ~ ' l Personal Services $ 171,160 $ 116,894 $ 54,266 $ 618,482 ' Operating Expenses 772,373 761,060 11,313 ` 367,161 . Capital Outlay 9,000 0 9,000 116,074 Total Fire Control 952,533 877,954 74,579 1,101,717 ~ , -Code Enforcement '' Personal Services 50,275 46,056 4,219 48,675 Operating Expenses `. 20,389 18,964 1,425 52,646 . Total Code Enforcement 70,664 65,020 5,644 101,321 r Protective Inspections Personal Services 92,202 92,501 ~ (299) 88,268 Operating Expenses 73,086 72,676. 410 44,539 Capital Outlay 1,968 •1,968 0 0 Total Protective Inspections 167,256 167,145 111 132,807 ^ Total Public Safety 3,599,423 3,460,371 139,052 3,372,384 f Transportation Personal Services 386,801 350,507 36,294 374,801 ~, 1 Operating Expenses 706,196 548,335 157,861 351,725 ' Capital Outlay ~ 279,112 180,820 98,292 35,515 Gcants and Aids 3,500 3,000 500 96,874 r" Total Transportation ~ 1,375,609 .1,082,662 292,947 858,915 • Culture/Recreation: .-- E Parks and Recreations ' Personal Services 190,262 193,293 (3,031) 127,765 Operating Expenses 284,097 260,777 23,320 198,265 Capital Outlay 16,660 16,047 613 8,327 • Total Culture/Recreation 491,019 470,117 20,902 334,357 '~' ~ Total Expenditures $ 6,306,418 $ 5,597,482 $ 708,936 $ ..5,144,077 33 .- ... r SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET SPECIAL REVENUE FUNDS SEPTEMBER 30, 2000, WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999 CITY OF ATLANTIC BEACH, FLORIDA Assets Cash and Cash Equivalents Due From Other Governments Total Assets Liabilities and Fund Balances Liabilities Accounts Payable -Due to Other Funds 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 Page 1 of 2 Pages . Tree. Local Option Miscellaneous . Replacement Gas Tax ~ Grants 2000 1999 2000 1999 2000 1999 $ 22,955 $ 22,303 $ 1,385,114 $ 1,192,046 $ ~ 500 $ 0 0 0 42,056 80,867 68,451 72,472 22,955 22,303 1,427,170 1,272,913 68,951 72,472 946 0 0 16,653 0 0 0 0 ~ 0 0 68,289 72,472 946 0 0 16,653 68,289 72,472 0 0 1,427,170 1,256,260 162 0 0 0 0 0 500 0 22,009 22,303 0 0 0 0 0 0 0 0 0 0. 22,009 22,303 1,427,170 1,256,260 662 0 $ 22,955 $ 22,303 $1,427,170 $1,272,913. $ 68,951 $ 72,472 34 - 1 - - 1 I l I I I 1 I i I I I I 1 1 Assets Cash and Cash Equivalents Due From Other Governments Total Assets . Liabilities and Fund Balances Liabilities Accounts Payable Due to Other Funds 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, 2000, WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 , 1999_ CITY OF ATLANTIC BEACH, FLORIDA Page 2 of 2 Pages Watert'ront Convention Florida Development Tax Partnership Police Grants Totals 2000 1999 2000 1999 2000 1999 2000. 1999 $ 45,360 $ 142,016 $ 0 $ 0 $ 45 $ 29,095 $ 1,453,974 $ 1,385,460 1,790 5,531 0 0 34,820 3,937 147,117 162,807 47,150 .147,547 0 0 34,865 33,032 1,601,091 1,548,267 0 0 0 0 1,478 20,836. 2,424 37,489 0 0 0 0 30,554 1,526 98,843 73,998 0 0 0 0 32,032 22,362 101,267 111,487 0 0 .0 0 0 0 1,427,332 1,256,260 47,150 147,547 0 0. 0 0 47,650 147,547 . 0 0 0 0 0. 0 22,009 .22,303 . 0 0 0 0 2,833 10,670 2,833 10,670 47,150 147,547 0 0 2,833 10,670 1,499,824 1,436,780 $ 47,150 $ 147,547 $ 0 $ ~ 0 $ 34,865 $ 33,032 $ 1,601,091 $ 1,548,267 35 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUNDS , FOR THE YEAR ENDED SEPTEMBER 30, 2000, WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999 CITY OF ATLANTIC BEACH, .FLORIDA Page l of 2 Pages Revenues Taxes Intergovernmental Revenue:. Federal Grants State Grants Miscellaneous Interest Income Total Revenues Expenditures General Government Public Safety Transportation (Total Expenditures) (Deficiency) Excess of Revenues (iJnder) 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 Tree Local Option Miscellaneous Replacem ent Gas Tax Grants 2000 1999 2000 1999 2000 1999 • $ 0 $ 0 $ 481,274 $ 458,441 $ 0 $ 0 0 0 0 0 75,028 83,971 0 0 0 0 0 0 4,392 825 0 0 0 0 0 0 80,839. 54,019 0 0 4,392 825 562,113 512,460 75,028 83,971 4,686 0 0 0 74,866 83,971 0 0 0 0 0 0 0 0 307,089 . 173,477 0 0 (4,686) 0 (307,089) (173,477) (74,866) (83,971) (294) 825 255,024 338,983 162 -0 0 0 0 0 500 0 0 0 (84,114) (63,940) 0 0 0 0 (84,114) (63,940) 500 0 (294) 825 170,910 275,043 662 0 22,303 21,478 . 1,256,260 981,217 0 0 $ 22,009 $ 22,303 $ 1,427,170 $ 1,256,260 $ 662 $ 0 36 I 1 I 1 1 I I 1 l I I 1 - COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ' SPECIAL REVENUE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2000, WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999 CITY OF ATLANTIC BEACH, FLORIDA Page Z of 2 Pages. ` Waterfront . Convention Florida Development Tax Partnership Police Grants Totals 2000 1999 2000 1999 2000 1999 2000 1999 Revenues Taxes $ 54,744 $ 60,060 $ 0 $ ' 0 $ 0 $ 0 $ 536,018 $ 518,501 Intergovernmental Revenue: 0 0 0 0 20,940 28,654 95,968 112,625 Federal Grants ~ 0 0 0 0 30,840 0 . 30,840 0 State Grants Miscellaneous 0 0 0 0 0 0 4,392 825 Interest Income 4,667 6,938 0 0 44 366 85,550 61,323 Total Revenues 59,411 66,998 0 0 51,824 29,020 752,768 .693,274 Expenditures General Government 1,000 65,626 0 3,633 0 0 80,552 153,230 Public Safety 0 0 0 0 64,246 43,274 64,246 43,274 Transportation 0 0 0 0 0. 0 307,089 173,477 enditures) l E t T (1,000) (65,626) 0 (3,633) (64,246) (43,274) (451,887) (369,981) xp ( o a (Deficiency) Excess of Revenues (Under) Over Expenditures 58,411 1,372 0 (3,633) (12,422) (14,254) 300,881 323,293 Other Financing Sources (Uses) " 0 0 0 0 125 6 23,288 6,625 23,288 Operating Transfers In Operating Transfers Out (158,808) 0 0 0 , (1,540) (8,228) (244,462) (72,168) Sources (Uses) Financin T t l Oth (158,808) 0 0 0 4,585 15,060 (237,837) (48,880) g er o a (Deficiency) Excess of Revenues and Other Financing Sources ~ • (Under) Over Expenditures and Other Financing Uses (100,397). 1,372 0 (3,633) (7,837) 806 63,044 274,413 of Year innin lances -Be d B F 147,547 146,175 0 3,633 10,670 9,864 1,436,780 .. 1,162,367 g g un a Fund Balances -End of Year $ . 47,150 $ 147,547 $ 0 $ 0 $ 2,833 $ 10,670 $ 1,499,824 $ 1,436,780 37 COMBINING BALANCE SHEET PROPRIETARY FUND TYPES -ENTERPRISE FUNDS SEPTEMBER 30, 2000, WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999 CITY OF ATLANTIC BEACH, FLORIDA Page 1 of 3 Pages Assets Cash and Cash Equivalents Accounts Receivable Due From Other Governments Inventories Special Assessment Receivable - Curnnt Note Receivable -Current 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 Unamortized Loan Costs Total Assets. Liabilities-and Fund Equity Liabilities Current Liabilities (Payable From Curnnt Assets): Accounts Payable and Accrued Liabilities Customer Deposits Deferred Revenue Accrued Compensated Absence Current Liabilities (Payable From Restricted Assets): Accounts Payable Interest Payable Revcnue Bonds Payable -Current Portion Arbitrage Liability Revenue Bonds Payable Total Liabflties Fund Equity Contributed Capital Retained Earnings: Reserved For Renewal and Replacement Reserved For Debt Service . Unreserved Total Ftmd Equity Total Liabilities and Fund Equity 1 I 1 1 I Water System.. Sewer System 2000 1999 2000 1999 $ 1,806,220 $ 2,226,405 $ 3,643,589 $ 4,26b,422 128,800 187,888 184,694 184,118 0 0 350,000 0 18,300 31,609 39,230 18,400 23,000 32,00 52,000 73,000 0 0 10,362. 10,362 8,665 21,492 16,678 29,244 468,268 4X,826 915,218 ~ 917,712 0 0 0 0 705,648 146,289 686,934 37,903 . 6,589,935 6,882,104 14,413,835 15,100,319 145,258• 159,363 243,641 274,511 0 - 0 67,354 77,717 102,385 I06,868 267,084 278,607 9,996,529 10,265,844 20,890,619 21,268,315 32,050 134,535 122,180 ~ 319,843 300,570 299,347 0 0 52,408 95,937 0 0 23,907 19,807. 43,769 40,286 ' 0 0 -0 0 118,545 ~ 120,554. ~ 374,909 380,701 103,331 105,766 295,255 293,171 0 0 0 -0 4,428,119 4,524,910 13,699,924 13,974,935 5,058,930 5,300,856 14,536,037 15,008,936 1,620,321. 1,693,576. 5,103,616. 4,853,995 250,000 250,000 250,000 250,000 218,268 221,826 665,218 667,712 2,849,010 .2,799,586 335,748 487,672 4,937,599 4,964,988 6,354,582 6,259,379 $ 9,996,529 $ 10,265,844 $ 20,890,619 $ 21,268,315 38 l ) l COMBINING BALANCE SHEET • PROPRIETARY FUND TYPES -ENTERPRISE FUNDS .. - SEPTEMBER 30,"2000, WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999 CITY OF ATLANTIC BEACH, FLORIDA Page 2 of 3 Pages Stormwater System Bond Construction Account Total Utility Fund . 2000 1999 2000 1999 2000 1999 Assets Cash and Cash Equivalents ' $ 639,010 $ 934,844 $ 0 $ 0 $ 6,088,819 $ 7,427,671 Accounts Receivable 3,540. 5,557 0 0 317,034 377,563 Due From Other Governments 25,000 0 0 0 0 0 375,000 57 530 0 009 50 Inventories 0 0 0 0 0 0 , 75,000 , 105,000 Special Assessment Receivable - Current 0 0 0 10,362 10 362 Note Receivable -Current . 0 0 0 0 0 25,343 , .50,736 Other Current Assets Restricted Assets: Cash and Cash Equivalents 185,220 184,014 6,342,113 7,244,078 7,910,819 8,817,630 Interest Receivable 0 0 188,872 237,022 188,872 237,022 . Constnrctiori in Progress 328,218 33,815 4,805,687 3,557,329 .6,526,537 • 3,775,336 Property, Plant and Equipment -Net 658,106. 708,356. 0 ~ 0 21,661,876 22,690,779 Special Assessment Receivable -Long-Term 0 0 0 0 388,899 433,874 Note Receivable -Long-Term 0 0 0 0 67,354 77,717. Unamortized Loan Costs 69,083 72,017 0 0 438,552 457,492 Total-Assets 1,908,177 1,938,603 11,336,672 11,038,429 44;131,997 44,511,191 LiabiL'ties and Fund Equity " Liabilities Current Liabilities (Payable From Current Assets): 698 0 2 0 0 154,230 457,076 Accounts Payable and Accrued Liabilities , 0 0 0 300 570 347 299 Customtr Deposits 0 0 0 0 0 , - 52,408 , 95,937 Deferred Revenue 0 0 0 0 67,676 60,093 Accrued Compensated Absences Current Liabilities (Payable From Restricted Assets): 0 0 63,018 236,085 63,018 236,085 Accounts Payable Interest Payable 107,487 109,024 0 " . 0 600,941 610,279 Revenue Bonds Payable -Current Portion 77,732 74,989, 0 0 476,318 473,926 Arbitrage Liability ~ 0 0 15,371 15,371 15,371 15,371 _ Revenue Bonds Payable 3,861,030 3,933,054 0 0 21,989,073 ~ 22,432,899 Total Liabilities 4,046,249 4,119,765 " 78,389 251,456 23,719,605 24,681,013 Fund Equity Contributed Capital 25,000 0 0 0 6,748,937. 6,547,571 Retained Earttings: 0 0 0' 0 500,000 " 500,000 Reserved For Renewal and Replacement 014 - 220 184 185 0 0 1,068,706 . 1,073,552 Reserved For Debt Service , , 365 176) 348 292) (2 (2 11,258,283 10,786,973 12,094,749 .11,709,055 Unreserved Total Fund Equity , , , , (2,138,072) .(2,181,162) 11,258,283" 10,786,973 20,412,392 19,830,178 Total Liabilities and Fund Equity $ 1,908,177 $ 1,938,603 $ .11,336,672 $ 11,038,429 $ 44,131,997 $ 44,511,191- 39 Assets Cash and-Cash Equivalents Accounts Receivable Due From Other Governments Inventories Special Assessment Receivable -Current Note Receivable - Curnnt Other Current Asscts Restricted Assets: Cash and Cash Equivalents Interest Receivable Constntcdon-in-Progress Property, Plant and Equipment -Net Special Assessment Receivable -Long-Term Note Receivable -Long-Teim Unamortized Loan Cosu Total Assets Liabi3ities and Fund Equity LiabiIlties Curnnt Liabilities (Payable From Curnnt Assets): Accounts Payable and Accrued Liabilities Customer Deposits Defernd Revenue Accrued Compensated Absences Curnnt Liabilities (Payable From Restricted Assets): Accounts Payable Interest Payable Revenue Bonds Payable - Curtent Portion Arbitrage Liability Revenue Bonds Payable Total Liabilities Fund Equity Contributed Capital Retained Earningr. Reserved For Renewal and Replacement Reserved For Debt Service Unreserved Total Fund Equity Total Liabilities and Fund Equity 40 COMBINING BALANCE SHEET - PROPRIETARY FUND-TYPES -ENTERPRISE FUNDS SEPTEMBER 30, 2000, WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999 CITY OF ATLANTIC BEACH, • FLORIDA ~ Page 3 of 3 Pages Sanitation Fund Totals - 2000 1999 .2000 1999 $ 474,894 $ 420,124 $ 6,563,713 $ 7,847,795 15,102 29,687 332,136 407,250 0 0 375.000 0 0 0 57,530 50,009 0 0 75,000 105,000 0 0 10,362 10,362 0 0 25,343 50,736 0 0 7,910,819 8,817,630 0 0 188,872 237,022 0~ 0 6,526,537 3,775,336- 6,111 5,743 21,667,987 22,696,522 0 0 388,899. 433,874 0 0 67,354 77,717 0 0 438,552 457,492 496,107 455,554 44,628,104 44,966,745 125 59,094 154,355 516,170 0 0 300,570 299,347 0 0 52,408 95,937 0 0 67,676 60,093 0 0 63,018 236,085 0 0 600,941- 610,279 _ 0 0 476,318 473,926 0 0 15,371 15,371 0 0 21,989,073 22,432,899. 125 59,094 23,719,730 24,740,107 0 0 6,748,937 6,547,571 0 0 500,000 500,000 0 0 1,068,706 1,073,552 495,982 396,460 12,590,731 12,(05,515 495,982 396,460 20,908,374 20,226,638 $ 496,107 $ 455,554 $ 44,628,104 $ 44,966,745 1 I 1 1 I I ti 1 7 1 COMBINING STATEMENT OF REVENUES, EXPENSES AND CIiANGES IN RETAINED EARNINGS PROPRIETARY FUND TYPES -ENTERPRISE FUNDS FOR .THE YEAR ENDED SEPTEMBER 30, 2000, WITH - COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999 ~l 1 CITY OF ATLANTIC BEACH, FLORIDA Page 1 of 3 Pages Water System Sewer System Operating Revenues Customer Charges Other Income Total Operating Revenues Operating Expenses Personal Services Contractual Services Supplies Repairs and Maintenance Beat, Light and Power Depreciation ' Other Expenses (Total Operating Expenses) Operating Income (Loss) Nonoperating Income (F,xperue) Connection Charges , Sewer Generation Charges Interest Income (Interest Expense) (Amortization of Loan Costs) Total Nonoperating (Expense) Income Net Income (Loss) Before Transfers Other Final ncing Sources (Uses) Operating Transfer In Operating Transfers Out Capital Transfer In Capital Transfers Out Total Other Financing (Uses) Sources 1\'et (Loss) Income Depreciation on Fixixed Assets Acquired By Shared Revenues Externally Restricted For Capital Acquisitions Increase (Decrease)in Retained Earnings Retained Earnings (Deficit), Beginning of Year Retained Earnings (Deficit), End of Year $ 1,775,381 $ 1,691,793 $ 3,031,393 $ 2,830,921 363,435 333,271 34,021 8,604 2,138,816 2,025,064 3,065,414 2,839,525 468,024 424,777 566,196 546,728 210,800 269,939 544,736 476,328 167,126 153,184 111,446 149,144 64,450 45,819 57,145 69,295 78,835 69,345 294,723 247,427 408,855 413,693 763,751 760,473 . 488,616 590,204 603,298 .400,205 (1,886,706) (1,966,961) (2,941,275) (2,649,600) 252,110 58,103 124,139 189,925 59,634 60,260 128,152 153,653 0 0 135,465 132,109 135,249 157,038 277,093 27f,776 (224,940) (250,703) (539,817) (546,989) (4,483) (4,352) (11,523) (11,343) . (34,540) (37,757) (10,630) (794) 217,570 20,346 113,509 189,131 5,915 0 21,312 0 (215,605) (546,556) (209,337) (546,556) 0 13,920 0 0 (35,269) (31,179) (239,012) (274,807) (244,959) (563,815). (427,037) (821,363)- . (27,389) (543,469) (313,528) (632,232) 73,255 73,255 159,110 159,110 45,866 (470,214), (154,418) (473,122) 3,271,412 3,741,626 1,405,384 1,878,506 $ 3,317,278 $ 3,271,412 $ 1,250,966 $ 1,405,384 41 COMBINING STATEMENT OF REVENUES, E%PENSES AND CHANGES IN RETAINED EARNINGS PROPRIETARY FUND TYPES -ENTERPRISE FUNDS • FOR THE YEAR ENDED SEPTEMBER 30, 2000, WITH- COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999 CITY OF ATLANTIC BEACH, FLORIDA ~ Page 2 of 3 Pages Stormwater System Bond Construction Account Total Utility Fund 2000 1999 2000 1999 2000 1999 Operating Revenues Customer Charges $ 246,975 $ 248,942 $ 0 $ 0 $ 5,053,749 $ 4,771,656 Other Income 0 SSO ~ 0 0 397,456 342,425 Total Operating Revenues 246,975 249,492 0 0 5,451,205 5,114,081 Operating Expenses 0 0 0 0 1,034,200 971,505 Personal Services Contractual Services 4,250 226,467 0 0 759,786 972,734 Supplies ~ 0 ~ 2,872 0 0 278,572 305,200 Repair and Maintenance 0 3,936 0 0 121,595 119,050 Light and Power Heat 0 0 0 0 373,558. 316,772 , Depreciation 50,250 SQZ50 0 0 1,222,856 1,224,416 Other Expenses ~ 2,533 464 0 0 1,094,447 990,873 (Total Operating Expenses) (57,033) (283,989) 0 0 (4,885,014) (4,900,550) Operating income (Loss) 189,942 (34,497) 0 0 566,191 213,531 Nonoperating Income (Expense) 0 0 ~ 0 0 187,786 213,913 Connection Charges • 0 0 0 0 _135,465. 132,109 Sewer Generation Charges 022 53 40 942. 0 0 465,364 469,756 Interest Income (Interest Expense) , (23,896) , (48,741) - 0 0 (788,653) (846,433) (Amortization of Loan Costs) (2,934) (2,934) 0 0 (18,940) (18,629) Total Nonopecating (Expense) Income. 26,192 (10,733) 0 0 (18,978) (49,284) Net Income (Loss) Before Trarufers 216,134 (45,230) 0 0 547,213 164,247.. Other Financing Sources (Uses) - 0 693 112 0 0 27,227 693,112 OperatingTransfersIn Operating Transfer Out (1,015) , 0 0 0 (425,957) (1,093,112) Capital Transfer In 0 0 471,310 481,139 471,310 495,059 Capital Transfers Out (197,029) (175,153) 0 (13,920) (471,310) • (495,059) Total Other Financing (Uses) Source (198,044) 517,959 471,310 467,219 (398,730) (400,000) Net (Loss) Income 18,090 472,729 471,310 467,219 148,483 (235,753) Depreciation on Fixed Assets Acquired By Shared Revenues Externally Restricted 0 0 0 232 365 365 232 For Capital Acquisitions Increase (Decrease)in Retained Earnings 0 18,090 472,729 471,310 467,219 , 380,848 , (3,388) Retained Earnings (Deficit), Beginning of Year (2,181,162) (2,653,891) 10,786,973 10,319,754 13,282,607 13,285,995. Retained Earnings (Deficit), End of Year $ (2,163,072) $ (2,181,162) $ 11,258,283 $ 10,786,973 $ 13,663,455 $ 13,282,607. 42 COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS • PROPRIETARY FUND TYPES -ENTERPRISE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2000, WITH COMPARATIVE TOTALS FOR THE YEAR ENDED. SEPTEMBER 30, -1999 CITY OF ATLANTIC BEACH, FLORIDA Page 3~of 3 Pages • Sanitation Fund Totals 2000 1999 2000 1999 Operating Revenues Customer Charges $ 1,148,412 $ 1,103,662 $ 6,202,161 $ 5,875,318 Other Income 19,736 5,948 .417,192 348,373 Total Operating Revenues 1,168,148 1,109,610 6,619,353 6,223,691 Operating Expenses Personal Services - 4,108 3,962 1,038,308 975,467 Contractual Services 753,983 741,045 1,513,769 1,713,779 , Supplies 0 0 278,572 305,200 Repair and Maintenance 0 0 . 121,595 119,050 Heat, Light and Power 0 0 373,558 316,772 Depreciation 2,331 1,797 1,225,187 1,226,213 Other Expenses 108,794 109,111 1,203,241 1,099,984 (Total Operating Expenses) (869,216) (855,915) (5,754,230) (5,756,46 " Operating Income (Loss) 298,932 253,695 865,123 467,226 Nonoperating Income (Expense) " Connection Charges 0 0 187,786 213,913 Sewer Generation Charges 0 0 135,465 132,109 Interest Income 29,141 19,959 494,505 489,715 (Interest Expense) 0 - 0. (788,653) (846,433) (Amortization of Loan Costs) 0 0 (18,940) (18,629) Total Nonoperating (Expense) Income 29,141 19,959 10,163 (29,325) Net Income (Loss) Before Transfers 328,073. 273,654 875,286 437,901 Other Furancing Sources (Uses) Operating Transfers In 0 0 27,227 693,112 Operating Transfers Out (228,551) (200,000) (654,508) (1,293,112) Capital Transfers In 0 0 471,310 495,059 Capital Transfers Out 0 0 (471,310) (495,059) Total Other Financing (Uses) Source- (228,551) (200,000) (627,281) (600,000) -Net (Loss) Income 99,522 73,654 248,005 (162,099) Depreciation on Ficed Assets Acquired By Shared Revenues Externally Restricted • For Capital AcqulsitIons 0 0 232,365 232,365 Increase (Decrease)in Retained Earnings 99,522 73,654 480,370 70,266 Retained Earnings (Deficit); Beginning of Year 396,460 322,806 13,679,067 13,608,801 Retained Earnings (Deficit); End oCYear $ 495,982 $ 396,460 $ 14,159,437 $ 13,679,067 43 COMBINING STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPES -ENTERPRISE FUNDS FOR THE ,YEAR ENDED SEPTEMBER 30, 2000, WITH COMPARATIVE .TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999 CITY OF ATLANTIC BEACH, FLORIDA Page 1 of 6 Pages ` Water System Sewer System noon ~nnn 1AAA 1000 Cash Flows From Operating AMivities Operating Income (Loss) Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided By (Used In) Operations: Depreciation and Amortization Changes in Assets - (Increase) Decrease: Accounts Receivable Due From Other Govertiments Inventory Changes in Liabilities- Increase (Decrease): Accounts Payable and Accnted 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 Out to Other Funds) Operating Transfers In From Other Funds Net Cash (Used In) Provided By Noncapital Fntancing Activities Cash Flows From Capital and Related Financing Activities (Loan Costs) Collections on Interest Receivable Collections on Note Receivable Collections on Special Assessments (Property; Plant and Equipment Additions) Contributed Capital (Principal Payments on Bonds and Note Payable) Additional Borrowing (Interest Paid, Net of Capitalized Interest) Capital Transfers In (Capital Transfers Out) - Net Cash (Used In) Provided By Capital and Related Fimancing 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 $ 252,110 $ 58,103 $ 124,139 $ 189,925 413,338 • 418,045 775,274 771,816 59,088. (61,340).. (576) 104,937 . ~ 0 0 (350,000) 0 13,309. (7,805) (20,830) 29,482 (98,38 86,241 (194,180) 273,441 1,223 10,902 0 0 (43,52 50,943 0 0 597,154 555,089 333,827. 1,369,601 '59,634 60,260 128;152 153,653 - 0 0 135,465 132,109 (215,605) (546,556) (209,337) (546,556) 5,915 0 21,312 0 (150,056) (486,296) 75,592 (260,794) . 0 (3,807) 0 (5,219). 12,827 0 12,566 0 0 0 10,363 10,362 23,105. 32,103 51,870 76,548 (674,038) (386,715) (717,567) (401,834) 0 69,399 408,731 0 (105,766) - (495,371) ~ (293,171) (809,135) 0 426,408 0 584,526 (226,949) (246,198) (545,619) (550,382) 0 13,920 ~ 0 0 (35,269) (31,179) (239,012) (274,807) (1,006,090) (621,440) (1,311,839) (1,369,941) 135,249 157,038 277,093 271,776 (423,743) (395,609) (625,327) 10,642 2,698,231 3,093,840 5,184,134 5,173,892 $ 2,274,488 $ 2,698,231 $ 4,558,807 $ 5,184,134 44 i I _ 1 ~ I f 1' I I COMBINING STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPES -ENTERPRISE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2000, WITH " COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999 CITY OF ATLANTIC BEACH, FLORIDA Page 2 of t3 Pages Stormwater System Bond Construction Account Total Utility Fund 2000 1999 2000 1999 2000 1999 Cash Flows From Operating Activities Operating Income (Loss) $ 189,942 $ (34,497) $ 0 $ 0 $ 566,191 $ 213,531 Adjustments to Reconcile Operating Income (Loss) - to Net Cash Provided By (Used [n) Operations: -Depreciation and Amortization 53,184 53,184 0 0 1,241,796 1,243,045 Changes in Assets - (Increase) Decrease: Accounts Receivable 2,017 2,295 0 0 60,529 45,892 Due From Other Governments (25,000) 0 0 0 (375,000) 0 Inventory 0 0 0 0 (7,521) 21,677 Changes in Liabilities -Increase (Dccrease): Accounts Payable and Accrued Liabilities. (2,698) (6,208) (173,067) 247,696 _ (468,330) 601,170 Customer Deposits 0 0 0 0 1,223 10,902 Deferred Revenue ~ 0 0 0 0 (43,529). 50,943 Net Cash Provided By (Used In) Operating Activities 217,445. 14,774 (173,067) 247,696 975,359 2,187,160 Cash Flows From Noncapital Finmancing AMIvities - ConnectionCharges 0 0 0 0 187,786 213,913 Sewer Genendon Charges 0 0 0 0 135,465. 132;109 (Operating Transfers Out to Other Funds) (1,015) 0 0 0 (425,957) (1,093,112) Operating Transfers In From Other Funds 0 693, l 12 0 0 27,227 693,112 Net Cash (Used In) Provided By Noncapital - Financing Activities (1,015) ~ 693,112 0 0 (75,479) (53,97$) Cash Flows From Capital and Related Financing ~ ". Acti~~ties (Loan Costs) 0 0 0 0 0 (9,026) Collections on Interest Receivable 0 0 48,150 1,086 73,543 1,086 Collections on Note Receivable 0 0 0 0 10,363 10,362 Collections on Special Assessments 0 0 0 0 74,975 108,651 (Property, Plarit and Equipment Additions) ~ (291,629) (33,815) (1,248,358) (1,634,031) (2,931,592) ~ (2,456,395) Contributed Capital ~ 25,000 0 0 0 433,731 69,399 (Principal Payments on Bonds and Note Payable) (74,989) (72,245) 0 0 (473,926) (1,376,751) Additional BotTOwing 0 0 0 0 0 1,010,934 . (Interest Paid, Net of Capitalized Interest) (25,433) (47,376] 0 0 (798,001) (843,956) Capital Transfers In 0 0 471,310 481,139 471,310 495,059 (Capital Transfer Out) (197,029) (175,153) 0 (13,920) (471,310) (495,059) Net Cash (Used In) Provided By Capital and Related Financing Activities (564,080) (328,589) (728,898) (1,165,726) (3,610,907) (3,485,696) Cash Flows From Investing Activities Interest Income 53,022 40,942 0 0 465,364 469,756 Net (Decrease)Increasein Cash and Cash Equivalents - (294,628) 420,239. (901,965) (918,030) (2,245,663) (882,758) Cash and Cash Equivalents, Beginning of Year 1,118,858 698,619 7,244,078 8,162,108 16,245,301 17,128,059 Cash and Cash Equivalents, End of Year $ 824,230 $ 1,118,858 $ 6,342,113 $ 7,244,078 $ 13,999,638 $ 16,245,301 1 45 COMBINING STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPES -ENTERPRISE FUNDS FOR THE YEAR ENDED. SEPTEMBER 30, 2000, WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999 CITY OF ATLANTIC BEACH, FLORIDA _ Page 3 of 6 Pages Sanitation Fund Totals ~nnn ~oo0 9nnn 1999 Cash Flows From Operating Activities Operating Income (Loss) Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided By (Used In) Operations: Depreciation and Amortization • 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 Casfi Provided By (Ustd In) Operating Activities Cash Flows From Noncapital 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 Noncapital Financing Activities Cash Flows From Capital and Related Financing Activities (Loan Costs) . Collections on Interest Receivable Collections on Note Receivable Collections on Special Assessments (Property, Plant and Equipment Additions) Contributed Capital (Principal Payments on Bonds and Note Payable) Additional Borrowings (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 (Decrease) Increase in Cash and Cash Equivalents Cash and Cash Equivalents, Beginning of Year Cash and Cash Equivalents, End of Year $ 298,932 $ 253,695 $ 865,123 $ 467,226 . 2,331 1,797 1,244,127 1,244,842 14,585 (10,324) 75,114 35,568 0 0 (375,000) 0 0 0 (7,521) 21,677 (58,969) 520 (527,299) 601,690. 0 0 1,223 10,902 . 0 0 (43,529) 50,943 256,879 245,688 1,232,238 2,432,848 0 0 187,786 213,913 0 0 135,465 132,109. (228,551) (200,000) - (654,508) - (1,293,I1Z) 0 0 27,227 693;112 (228,551) (200,000) (304,030) (253,978) 0 0 0 (9.~6) 0 0 73,543 1,086 0 0 10,363 10,362. 0 0 74,975 108,651 (2,699) (2,650) (2,934,291) (2,459,04 0 0 433,731 69,399 0 0 (473,926) (1,376,751) 0 0 0 1,010,934 0 0 (798,001) (843,956) • 0 0 471,310 495,059 0 0 (471,310) (495,059) (2,699) (2,650) (3,613,606) (3,488,346) 29,141 19,959 494,505 489,715 54,770 62,997 (2,190,893) (819,761) 420,124 357,127 16,665,425 17,485,186 $ 474,894 $ 420,124 $ 14,474,532 $ 16,665,425 46 COMBINING STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPES -ENTERPRISE FUNDS. FOR THE YEAR ENDED SEPTEMBER 30, 2000, WITH COMPARATIVE TOTALS. FOR THE YEAR ENDED SEPTEMBER 30, 1999 CITY OF ATLANTIC BEACH, FLORIDA Page 4 of 6 Pages Water System Sewer System 2000 1999 2000 1999 Balance Sheet Components o[ Cash and Cash Equivalents - Cash and Cash Equivalents $ 1,806,220 $ 2,226,405 $ 3,643,589 $ 4,266,422 Restricted Assets: Cash and Cash Equivalents 468,268 471,826 915,218 917,712 Total Cash and Cash Equivalents, End of Year $ 2,274,488 $ 2,698,231 $ 4,558,807 $ . 5,184,134 - Noncash Activity Fixed Asset Transfers In (Out) $ 0 $ 13,920 $ 0 $ 0 .Capitalized Tnterest Expense (Tncome) $ 35.269 $ 31,179 $ 239,012 $ 274,807 47 COMBINING STATEMENT OF CASH FLOWS ~ " PROPRIETARY FUND TYPES -ENTERPRISE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2000, WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999 CITY OF ATLANTIC BEACH, FLORIDA Page S of 6 Pages Stormwater System Bond Construction Account Total Utility Fund 2000 1999 2000 1999 2000 1999 Balance Sheet Components of Cash and Cash Equivalents . Cash and Cash Equivalents ~ $ 639,010 $ 934,844 $ 0 $ 0 $ 6,088,819 $ .7,427,671 Restricted Assets: Cash and Cash Equivalents 185,220 184,014 6,342,113 7,244,078 7,910,819 8,817,630 Total Cash and Cash Equivalents, End of Year $ 824,230 $ 1,118,858 $ 6,342,113 $ 7,244,078 $ 13,999,638 $ 16,245,301 Noncash Activity - Fixed Asset Transfers In (Out) $ 0 $ 0 $ 0 $ (13,920) $ ~ 0 $ 0 Capitalized Interest Expense (Income) $ 197,029 $ 175,153 $ (398,613) $ (460,611) $ 72,697 $ 20,528 48 COi1~1BINING STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPES -ENTERPRISE FUNDS " FOR THE YEAR ENDED SEPTEMBER 30, 2000, WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999 , CITY OF ATLANTIC BEACH, FLORIDA Page 6 of 6 Pages Sanitation Fund Totals 2000 1999 2(KIO 1999 Balance Sheet Components of Cash and Cash Equivalents Cash and Cash Equivalents $ 474,894 $ 420,124 $ 6,563,713 $ 7,847,795 Restricted Assets: Cash and Cash Equivalenu 0 0 7,910,819 8,817,630 Total Cash and Cash Equivalents, End of Year $ 474,894 $ 420,124. $ 14,474,532 $ .16,665,425 . Noncash Activity Fixed Asset Transfers In (Out) $ 0 $ ~ 0 $ 0 $ 0 Capitalized Interest Expense (Income) - ' $ 0 $ 0 $ 72,697 $ 20,528 SCHEDULES OF NET REVENUES IN ACCORDANCE . WITH BOND RESOLUTIONS ENTERPRISE FUNDS (WATER AND SEWER) 'FOR THE YEARS ENDED SEPTEMBER 30, 2000 AND 1999 • ' CITY OF.ATLANTIC BEACH, FLORIDA 2000 1999 Gross Revenues Water $ 2,138,816 $ 2,025,064 Sewer 3,065,414 2,839,525 Connection Charges 187,786 213,913 Interest ~ 412,342 428,814 Total Gross Revenues 5,804,358 5,507,316 Operating Expenses Personal Services 1,034,200 971,505 Contractual Services 755,536 746,267 .Supplies ~ 278,572 302,328 Repairs and Maintenance 121,595 115,114 Heat, Light and Power 373,558 316,772 Other Expenses 1.091.914 990.409 (Total Operating Expenses) ' Total Net Revenues in Accordance With Bond Resolutions • Capital Facilities Charges •Special Assessments -New Net Revenues Plus Capital Facilities Charges and Special Assessments Debt Service Interest Paid (Capitalized Interest), • Principal Paid (Interest Earnings -Sinking Fund) Total Debt Service Debt Service Coverage Ratio Debt Service Coverage Ratio Excluding Capital Facilities Charges Required Debt Service Coverage Ratio Required Debt Service Coverage Ratio, Excluding Capital Facilities Charges 50 2,148,983 2,064,921 135,465 132,109 $ 1,183,770. $ 1,199;877 (471,310) (481,139) • 410,000 395,000 ,_ (19,922) (28,748) $ 1,102,538 $ 1,084,990 . 2.07 2.02 1.95 1.90 1.10 1.10 1.05 1.05 .- i t .- i C' COMBINING BALANCE SHEET FIDUCIARY FUND TYPES. ALL FIDUCIARY FUNDS • SEPTEMBER 30, 2000, WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999 CITY OF ATLANTIC BEACH; FLORIDA Pooled Cash Payroll Clearing Pension Trust Expendable Trust Totals 2000 1999 2000 1999- 2000 1999 2000 1999 Assets Cash and Cash Equivalents $ 28,382 $ 3,710 $ 69,278 $ 235,045 $ 178,458 $ 170,108 $ 276,118 $ 408,863 Investments 0 0 8,860,069 9,666,639 0 0 8,860,069 9,666,639 Total Assets 28,382 3,710 8,929,347 9,901,684 .178,458 170,108 9,136,187 10,075,502 Liabilities and Fund Balances Liabilities . able and Accrued Liabilities Pa t A 28,382 " 3,710 3,699 3,280 0 135 32,081 7,125 y ccoun s Fund Balances Reserved For Police Training and 0 0 0 0 458 178 169,973 178;458 169,973 Other Expenditures Reserved For Retirement 0 0 8,925,648 9,898,404 , 0 0 8,925,648 9,898,4114 Total Fund Balances 0 0 8,925,648 9,898,404 178,458 169,973 9,104,106 10,068,377 Total Liabilities and Fund Balances $ 28,382 $ 3,710 $ 8,929,347 $ 9,901,684 $ 178,458 $ 170,108 $ 9,136,187 $ 10,075,502 51 r ~, .- r-' ..- t ' ~ ADDITIONAL INFORMATION ,..` ~ Additional information schedules differ .from financial statements because they usually cover more, than ;-.. one fiscal year and may present nonaccounting data. Certain schedules .are unaudited, as marked. °~ r- r- ,. .`- E 1 r,._ i , C ~: ,,,_ ~ BOND COVENANT -CONTINUING DISCLOSURES t f'"' Selected Financial Information and Operating Data Regarding the System Historical Revenue and Expenses ..- r Major Utility Customers (Unaudited) r-- Summary of Water Usage (Unaudited) ' ~ Summary of Wastewater Treatment (Unaudited): r Atlantic Beach Sewer Division • t ,.. Buccaneer Sewer Division ` Other Bond Covenant'Disclosures r- Utility Service Tax Collections i Ad Valorem Tax Collections F r~ ' 1 ... .~- ' ~, r .... r" "` SELECTED FINANCIAL INFORMATION AND OPERATING DATA ~. REGARllING TIC SYSTEM ~ . !`' Historical Revenue and Expenses • 1996 1997 1998 1999 2000 Revenues r... Operating Revenues Water: Customer Charges $ 1,527,375 $ .1,759,802 $ 1,770,795 $ 1,752,053. $ 1,835,015 ... Miscellaneous Charges 273,314 332,919. 308,630 333,271 363,435 t Total Water 1,800,689 2,092,721 2,079,425 2,085,324 2,198,450 ~ Sewer. Customer Charges 3,154,362 3,118,621 2,977,937 2,993,178 3,193,566 r- Total Operating Revenues 4,955,051 5,211,342 5,057,362 5,078,502 5,392,016 Nonoperating Revenues • Interest Income: Water 120,868 143,362 186,562 157,038 135,249 ~^ Sewer 190,106 210,270 292,921. 271,776 277,093 ' Total Nonoperating Revenues 310,974 353,632 479,483 428,814 412,342 { Total Revenues 5,266,025 .5,564,974 .5,536,845. 5,507,316 5,804,358 f" Expenses. Operating Expenses ' Water 654,316 743,041 774,192 963,064 989,235 Sewer 1,184,980 1,296,781 1,316,590. 1,488,922 1,574,226 ~' Total Operating Expenses (1,839,296) (2,039,822) (2,090,782) (2,451,986) (2,563,461) Administrative and Nondivisional ' Water 323,803 343,927 358,145 330,340 309,386 Sewer 323,803 343,927 388,004 328,671 534,027 r- Total Administrative and Nondivisional (647,606) (687,854) (746,149) (659,011) (843,413) l Other Expenses (96,120) (112,756)' (233,143) (331,398). (248,501) Total Expenses (2,583,022) (2,840,432) .(3,070,074) (3,442,395) (3,655,375) C Net Revenues 2,683,003 2,724,542 2,466,771 2,064,921 2,148,983 Capital Improvement Charges +-. Water (1) 73,638 0 0 0 0 Sewer 126,478 127,758 295,504 132,109 135,465. . • Total Capital Improvement Charges 200,116 127,758 .295,504 132,109 135,465 Net Revenues Available For Debt Service (2) 2,883,119 2,852,300 2,762,275 2,197,030 , 2,284,448 ~ Nonoperating Income (Expense) ' (Interest Expense) (474,802) (614,318) (781,217)- (797,692) ..(764,757) '~" (Loan Amortization) (7,479) (15,383) (15,383) (15,695) (16,006) Total Nonoperating Income (Expense) (482,281) (629,701) (796,600) (813,387) (780,763) Net Income Before Depreciation and .Operating Transfers $ •2,400,838 $ 2,222,599 $ 1,965,675 $ 1,383,643 $ 1,503,685 Notes: (1) Prior to fiscal year 1997, combined water connection and water capital•facilities charges were shown on this line. Beginning in 1997, they were included under water customer charges. • (2) Line entry for comparison to projected operating results. 52 SELECTED FINANCIAL INFORMATION .AND OPERATING DATA REGARDING TIIE 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 _ upon billing records for fiscal year 2000. These customers collectively accounted for approximately 19 of System revenues for 2000. Major. Customer Annual Billings Naval Off-Base Housing $ .340,490 Fleet Landing (Retirement Community) 148,794 Hannah (Regional) Park 127,250 ~~ Oaks of Atlantic Beach (Mobile Home Park) 68,318 Atlantic Village (Mobile Home Park) 106,369 •_ Sea Turtle Inn (Hotel) ~ 51,997 - Admiral's Walk (Mobile Home Park) 58,647 • Sea Oats Plantation (Apartment Complex) ~ 68,842 Comfort Inn (Hotel) . 31',031 - Arms Property 43,038 Total Fiscal Year 2000 - $ .1,044,776 - . 53 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 24,508 2.7% 4,956 2,361 7,317 1,560 2,211 , 3,771 3.294 .1 Atlanfic Beach Division (CAB) Buccaneer Division (BUC) ~ - ~ - 54 SELECTED FINANCIAL INFORMATION AND OPERATING DATA REGARDING THE SYSTEM Summary of Wastewater Treatment (iJnaudited) Buccaneer Sewer Division Annual Sewer Customers Percentage Single Multi- " Year ~ Population ~ Change - -Unit Unit .Total _ Historical .1994 9,445 1.4% 2,261 1,178 3,439 .1995 9,457 .1 % 2,254 1,174 3,428 1996 9,655 2.1 % 2,329 2,437 4,766 1997 9,795 1.5% 2,402 2,437 4,839 1998 10,204 4.2% 2,441 2,461. 4,902 1999 10,247 - .4 % 2,489 2,458 4,947 . 2000 10,672 4.1 % 2,563 2,491 5,054 Average Annual Flow Percentage (MGD) Change 1.027 15.0% 1.028 - .1 1.009 (1.8) 1.027 1.8% ' 1.011 (1.6)% .951 (5.9) % .918 (3.5) 56 1 I i I I 1 i I I 1 I ,_ I 1_ 1 i _.1 i i r I '~ • OTHER BOND COVENANT DISCLOSURES 1 Utility Service Tax Collections (Last Five Years) i Year Electricity Telecom Gas Fuel Oil Total .1996 $ 331,896 $ 152,684 $ 36,735 $ 503 $ .521,818 . ~`" 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 t Ad Valorem Tax Collections r- (Last Five Years) r.. Year ' Current Deiinyuent Total '. '1996 $ 1,344,307. $ 844 $ 1,345,151 • 1997 1,420,033 2,335 1',422,368 .,:, . 1998 1,519,b45 5,413 1,525,058 '~ 1999.• 1,757,357 1,175 1,758,532 , 2000.,. 1,875,702 ~ 748 1,876,450 j .... t , ., . t- . `"' , 57 . r REPORT ON SEWERAGE .SYSTEM CAPITAL IMPROVEMENT .ACCOUNT .--- t r INDEPENDENT ACCOUNTANTS' REPORT Honorable Mayor, City Commission and City Manager I City of Atlantic Beach Atlantic Beach, Florida As part of our audit of the general-purpose financial statements of the City of Atlantic Beach,- Florida (the City) for .the year ended September 30, 2000, . we examined the City's Sewerage System Capital ~- Improvement Account for' the purpose of determining if it had been maintained in accordance .with Chapter 17-501.610, Florida Administrative Code, Revenue Generation System. Our examination was made in accordance with standards established by the American Institute of Certified Public Accountants ~ and, accordingly, included such procedures as we considered necessary in the circumstances. In our opinion, the City's Sewerage System'Capital Improvement Account was maintained in accordance ,.~ with Chapter 17-501.610, Florida Administrative Code; for the year ended September 30, 2000. r November 17, 2000 ~ ~ ~~ Gainesville, Florida ~~c,it~t~cJ, /~ GZ~~ r~ ,.- i Certified Public Accountants P.O. Box 23999.222 N.E. 1 st Street • Gainesville, Florida 32602 • (352) 378-2461 • FAX (352) 378-2505 Laurel Ridge Professional Cuter • 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 2i° Street • Sarasota, Florida 34236 • (941) 365-3774 . FAX (941)365-0238 MEMBERS OF AMERICAN AND FLORIDA INSTITUTES OF CERTiFlEO PUBUC ACCOUNTANTS MEMBER OF AMERICAN INSTiME OF CERTIFIED PUBUC ACCOUNTANTS PRNATE COMPANI£5 AND S.E.C. PRACTICE SECTIONS 58 ri < . Computed Pension Contribution Comparative Schedule .-.. Pension Revenues By Source and Expenses By Type r- r .~- r ~-- COMPUTED PENSION CONTRIBUTION COMPARATIVE SCHEDULE LAST TEN FISCAL YEARS CITY OF ATLANTIC BEACH, FLORH)A ,-- i I Employees' Retirement Plan** Contribution Rates Fiscal As Percents of Year Valuation Valuation.Payroll Dollar Contribution Ending Date Fire Valuation For Fiscal Year . 9/30 9/30 General Police Fighters Payroll Computed Actual 1991 1989 9.27 11.76 7.16 $ 1,909,994 $ 202,961 $ 209,590 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 j"' 9/30 9/30 Valuation Payroll Payroll Computed Actual !!, 2001 1999 11.24 % $ 2,185,131 $ 266,148 . r Police Retirement Plan • r _ ~ Fiscal Year Valuation Contribution Rates Dollar Contribution r Ending Date As Percents of Valuation For Fiscal Year 9130 9/30 Valuation Payroll Payroll Computed Actual 2001 1999 16.70% $ 1,018,459 $ 184,305 r r.., . * After changes an benefit provisions and/or actuarial :experience estimates. i ** Prior to creation of se parate pension plans for police and general employees. 59 PENSION REVENUES BY SOURCE AND EXPENSES BY TYPE- LAST TEN FISCAL YEARS , CITY OF ATLANTIC BEACH, FLORIDA igloo Amount Percent 1999 1998 1997 1996 1995 1994 1993 1992 1991 Pension Revenues Contributions: Member $ 72,356 6.4% $ 86,172 $ 96,549 $ 98,778 $ 111,431 $ 99,115 $ 93,905 $ 28,613 $ 27,717 $ 24,427 Ciry 375,434 33.130 358,351 362,340 331,540 329,495 243,429 198,158 194,679 . 203,568 148,428 State -Police 63,997 5.790 68,048 70,289 68,966 62,426 57,858 49,918 46,880 41,694 43,149 State -Fire Fighters 2,110 .250 50,748 47,778 39,165 29,544 26,294 26,816 26,712 19,118 18,013 _ Investment Interest and Dividends 15,222 1.3% 9,766 8,290 5,300 4,863 3,887 2,933 3,419 3,170 7,863 Gain 556,808 49.23'0 839,503 781,553 1,423,586 757,698 823,698 21,828 482,123 368,633 449,589 Miscellaneous Revenues 46,320 4.190 47,375 18,747 18,766 12,133 0 0 42 0 0 Total Pension Revenues $ 1,132,247 100.0` $ 1,459,963 $ 1.385,546 $ 1,986,101 $ 1,307,590 $ 1,254,281 $ 393,558 $ 782,468 $ 663,900 $ 691,469 Pension Expenditures Benefits and Refunds Paid $ 385,357 78.8` $ 416,698 $ 400,832 $ 360,891 $ 280,159 $ 257,042 $ 155,842 $ 118,272 $ 89,375 $ 89,899 Other Expenses* 103,719 21.2 Ho 108,447 82,623 70,058 56,329 0 0 0 0 0 -Total Pension Expenditures $ 489,076 100.090 $ 525,145 $ 483,455 $ 430,949 $ 336,488 $ 257,042 $ 155,842 $ 118,272 $ 89,375 $ 89,899 * Other expenses shown separate from benefits and refunds since 1995. 60 .- .- r'- r r SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE YEAR ENDED SEPTEMBER 30, 2000 CITY OF ATLANTIC BEACH, FLORIDA Federal CFDA Award Number Contract Number Amount (Receiptsl Expenses U.S. Department of Housing and Urban Development Passed Through City of Jacksonville, Florida Community Development Block Grant/EntitlementGrapt Community Development Block Grant/Entitlement Grant U.S. Department of Justice Passed Through Florida ' Department of Community Affairs Jordan Park Community Center I* Jordan Park Community Center II* Atlantic Beach Pursuit Termination Project U.S. Department of Transportation Passed Through Florida Department of Transportation DUI Enforcement Project Federal Emergency DZanagement Agency Public Assistance Grants (Hurricane Floyd)* U.S. Department of Environmental Protection Passed Through Florida Department of Environmental Protection Core City Stormwater Improvements Total Fedcral Awards 14.218 5629-18 (FY 1998-99) $ 150,400 $ (72,634) $ 0 14.218 5629-17 (FY 1999-00) 150,000 (6,415) 74,866 16.579 99-CJ-9M-04-26-02-180 13,680 (3,937) 0 16.579 00-CJ-D8-04-26-02-137 15,000 (7,685) 11,665" 16.592 00-CJ-G3-04-26-02-120 9,275 " (9,275) 9,275 20.600 J8-00-06-10-01/AH898 83.544 00-RM-X-04-26-02-008 36,800 0 30,840. 33,109 (33,109) 33,109 428,450 0 0 $ (133,055) $ ~ 159,755 61 ._.~ SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE " FOR THE YEAR ENDED SEPTEMBER 30; 2000 CITY OF ATLANTIC BEACH, FLORIDA (Concluded) Federal . CFDA Award " Number Contract Number Amount (Receipts) Expenses State Financial Assistance Florida Department of Community Affairs ' Public Assistance Grants N/A 00-RM-X-04-26-02-008 $ 5,306 S (5,306) $ 5,306 Evaluation and Appraisal Report Assistance Program N/A 99-DR-1G-04-26-02-020 10,000 (10,000) 0 Local Mitigation Strategy and Hazard Mitigation Grant N/A 99-LM-4H-04-26-01-016 15,000 (9,000) 0 Emergency Management Preparedness Grant N/A OOCP-07-04-26-02-102 300,000 0 0 Florida Department of Environmental Protection Core City Sewer Project* N/A ~ SP747110 350,000 0 350,000 Duval County Shore Protection Project -Dune Walkover N/A 30,000 0 0 Florida Inland Navigation District Intracoastal Waterway Park (Construction) N/A DU-AB-97-30 164,473 (164,473) 26,331 Dutton Island Conservation Park - Phase L (Design) ~ N/A DU-AB-98-31 25,000 0 10,887 St. John's River Water Aanagement District Stormwater Management's Project Cooperative Cost Share Program (Redesign) _ N/A 99H323 25,000 0 25,000 Stormwater Management's Project Cooperative Cost Share Program (Construction) N/A SD461AA ~ " 20,000 0 0 Total State Financial Assistance $ (188,779) $ 417,524 * Denotes state grants and aids appropriations. 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 ..- j ~ Honorable Mayor, City Commission and City Manager City of Atlantic Beach ~ , Atlantic Beach, Florida ,~-~ t 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, 2000, and have issued our report thereon dated November 17, 2000. 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 r-- those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under 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 I~ 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 t- 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 r consider to be material weaknesses. Grtlfisd 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) ?32-0542 ` 443 East Coliepe Avenue • Taliahaasee, Florida 32301 • (850) 224-7144 • FAX (850) Z24-1762 1727 2n0 Street • Sarasota, Fbrida 34236 • (941) 365-3774 • FAX (941)365-0238 woaeere of ~~ a+sTrnrrs of eexnriEO r~x: ~ceou-rr~xrs r~w~~ co.w~-ees N+o s.ca vwience seenorrs ' 63 .-. Honorable Mayor, City Commission and City Manager City of Atlantic Beach "' Atlantic Beach, Florida INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND ON i ~ INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN .AUDIT OF GENERAL-PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE f WITH GOVERNMENT AUDITING STANDARDS " (Concluded) r 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. 1 " r .November 17, 2000 ( ,,~~ytct.~ •~ ~~ ~_ / ` Gainesville, Florida -~`~ i ~ GZ~~ " r ~, I r I i r _ - .... r-- r Gay Company f"' INDEPENDENT AUDITORS' REPORT ON EXAMINATION OF MANAGEMENT'S ASSERTION ABOUT COMPLIANCE WITH SPECIFIED REQUIREMENTS ~ ~ . ~ Honorable Mayor, City Commission and City Manager City of Atlantic Beach t -- Atlantic Beach, Florida • We have examined management's assertion that the City of Atlantic Beach, Florida (the City) complied ~- with the allowable cost requirements of the grants and aids appropriations identified in the schedule of expenditures of federal awards and state financial assistance, for the year ended September 30, 2000. Management is responsible for the City's compliance with those requirements. Our responsibility is to ._ express an opinion on management's assertion about the City's compliance based on our examination. ` Our examination was made in accordance with standards established by the American Institute of Certified r.,, Public Accountants and, accordingly, included examining, on a test basis, evidence about the City's i ' compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the City's compliance with specified requirements. .-. i In our opinion,.management's assertion that the City complied with the allowable cost requirements of the grants and aids appropriations identified 'in the schedule of expenditures of federal awards and state financial assistance during the fiscal year ended September 30, 2000, is fairly stated, in all material • respects. '"' 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. r ~ . r . November 17, 2000 "~~~e~it~ ~ Gh~ Gainesville, Florida ~^~ Certified Public Accountants ~ P.O. Box 23999.222 N.E.1 st Street • Gainesvitle, 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) ?32-0542 443 East College Avenue • Tallahassee, Fbrida 32301 • (850) 224-7144 • FAX (850) 224-1762 1727 2n0 Street • Sarasota, Fbrida 34236 • (941) 365-3774 • FAX (941)365-0238 r.., r~aeas or iw~iuw ~r+o Ftoao~ ~HSmvres of e~rennm Pueue sccourrrum I t+o+sErt of ~Eruc~w u+smvrE of c~tnfiEO nieuc ~courtrMrts ww~rE caw~wcs Brio s.EC r~cnce sECrons 65 r' ~ MANAGEMENT LETTER ("' - ~ Honorable Mayor, City 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 fiscal year ended September 30, 2000, and have issued our report thereon dated November 17, 2000. ~- We have issued our independent auditors' report on compliance .and on internal control over financial . reporting dated November 17, 2000. Disclosures in that report, if any, should be considered in conjunction with this management letter. r- 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. 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 m the state of Florida and require that certain items be addressed in this letter. j The Rules of the Auditor General [Section 10.554(1)(e)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)(e)1.(b)] require that we comment as to whether 'or ~ not recommendations made in the preceding .annual financial audit report have been followed. The • ' recommendation made in the preceding audit report has been implemented. r' As required by the Rules of the Auditor General [Section 10.554(1)(e)2.], the scope of our audit included C 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 is not in a state of financial ~~ emergency as a consequence of the conditions described in Section 218.503(1), Florida Statutes. r • Certified Public Accountants !" 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 • Ocala, Fiorida 34471 • (352) 732-3872 • FAX (352) 732-0542 443 East Coitege Avenue • Tallahassee, Florida 32301 • (850) 224-7144 • FAX (850) 224.1762 1727 2"• Street • Sarasota, Fiorida 34236 • (941) 365-3774 • FAX (941) 365-0238 r MEMBERS OF AMERICAN AND FLORIDA iNSTIMES ~ CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTiME OF CERTIFIED PUBLIC ACCOUNTANTS PRNATE COMPANIES AND S.EC. PRACTICE SECTIONS ' Gay Company r - Honorable Mayor, City Commission and City Manager City of Atlantic Beach Atlantic Beach, Florida '~ MANAGEMENT LETTER ' 1 (Continued) As required by the Rules of the Auditor General [Section 10.554(1)(e)3.], we determined that the financial r report for the City for the fiscal year ended September 30, 2000, filed with the Florida 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, 2000. ' The Rules of the Auditor General [Section 10.554(1)(e)4.]; require that we determine whether the City 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. The Rules of the Auditor General [Sections 10.554(1)(e)6., 7. and 8.(a), (b), and (c)] 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 r 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 Rules of the Auditor General [Sections 10.554(1)(e)6., 7. and 8.]. The Rules of the Auditor General [Section 10.554(1)(e)9.] 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 Atlantic Beach, Florida. .This management letter is intended for the information and- use of the Mayor, City Commission, r' management, and the State of Florida, and is not intended to be and should not be used by another other i ~ than these specified parties. r' We wish to take this opportunity to thank you and your staff for the cooperation and courtesies extended to us during the course of our audit. Please let us know if you have any questions or comments concerning this letter, our accompanying .reports, or other matters. r i November 17, 2000 ' Gainesville, Florida ~.~%r~'rL~, ~~ (-li`?LZ~ (/ f r-- 67