Audit Report - 1996-19971
1
pia-~Ct r~p~~
CITY OF
~rtic b~'` eatl - ~~v~ida
FINANCIAL STATEMENTS
AND
INDEPENDENT AUDITORS' REPORT
SEPTEMBER 30, 1997
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Febmary 10, 1998
Honorable Mayor and City Commission
City of Atlantic Beach
800 Seminole Road
Atlantic Brach, FL 32233
Dear Sirs and Madam
I was asked [o prepare a summary of the audit presentation made to the Commission on February 9,
1998. Statement of Auditing Standards No. 61 and Government Auditing Standards require the
auditors to inform the City's audit committee or Ciry Commission about certain matters relating to the
scope and results of the annual financial audit. This required communication is being made in
compliance with those standards and to assist the City Commission in overseeing management's
financial reporting and disclosure process.
Auditors' Responsibilities Under Generally Accepted Auditing Standards (GRAS)
The auditors should inform the audit committee or City Commission about the relative ruponsibilities
of the auditors and the City. In addition, the auditors should discuss their review of internal controls.
The financial statements are the responsibility of management. Our audits were performed in
accordance with GAAS which provide for reasonable, rather than absolute, assurance that the financial
statements are free of material misstatement It is our responsibility to express an opinion on the
accuracy of these financial statements based on our audit. We have issued an unqualified opinion on
the City's financial statemens for the year ended September 30, 1997.
As part of our audit, we obtained a sufficient understanding of internal controls [o plan our audit and to
determine the nature, timing and extent of testing performed.
Auditors' Responsibilities Under Goverrunemt Auditing Standards (GAS)
In addition to the GAAS responsibilities, we are required to issue [main reports, schedules, 2nd letters
on our consideration of the City's internal controls, the City's compliance with certain laws,
regulations, contracts, and grant provisions, the City's current year revenues and expenditures for all
federal and state grant programs, and certain other matters as required by the Auditor General of the
State of Florida. These reports, schedules, and letters begin on page 65 of the City's Financial
Statements and Independent Auditors' Repot (the "Annual Report). Our reports disclosed no material
weaknesses in internal controls and no material compliance violations or grant noncompliance.
Significant Accounting Policies
The auditors should inform the audit contmiuee or City Commission about the selection of or changes
in significant accounting policies or their application, including the methods used to acwunt for
significant unusual transactions.
Certified Public Accountants
PU. Hr~s 239Y9 • 21l N.E. 7s15net1 • Gainesville, gnrida 32602 • 17521 3ia-2J61 • iAX 115[1 578-25nS
~nl Md~ii/X~'niV/~u•\I)IIlFIU11\tnll'lla,%[IYIRii llP 0.IN u1i•~~1\:4
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Honorable Mayor and City Commission
City of Atlantic Beach
Atlantic Beach, FL -2- Febmary 10, 1998
Significant accounting policies are disclosed in the Annual Report, pages t2-18. There were no
significant unusual transactions.
Management Judgments and Accounting Estimates
The auditors should infomt the audit committee or Ciry Commission about significant accounting
estimates, the process used by management in formulating those estimates, and the auditor's
conclusions regarding the reasonableness of those es['unates.
Significam estimates are involved in the City's accounting for depreciation, uncollectible receivables,
and unbilled revenues. For these accounts, management has recorded their best estimate in the
financial statements, and we concur with that estimate.
Significant Audit Adjustments
The auditors should inform the audit committee or City Commission about significant audit adjustments
which may no[ have been detected except through the auditing procedures performed. During the
audit, we proposed entries m aceme certain revenues, capitalize interest costs, capitalize fixed asset
additions in the Bond Constmction fund, adjust other bond-related accounts and make other minor
reclassifications and adjustments. Most of these adjustments were anticipated by management, and all
were made with their consent.
Other Worrnation to Documents Containing Audited Financial Statements
We have read the Bond Covenant Continuing Disclosure uhedules marked "Unaudited" in the Annual
Report, and found no incorsistencies with [he audited infmrrnation.
Disagreements With Management
None.
Consultation With Olher Accountants
None.
Major Issues Discussed With Management Prior to Retention
None.
Difficulties Encountered in Perforaning the Audit
None. Excellent coopetatinn from management and staff.
Material Fraud, Ettors, Irregularities, or Illega3 Acts
None found.
Financial Highlights
The financial highlights presented below and at the Febmary 9 Commission meeting are not required
disclosures, but were presented as a brief review of significant figures in the Annual Repot.
On page 6, the General Fund reposed a "net income" for the year ended September 30, 1997 of
$417,531, compared to a budgeted deficit of 5104,153, a favorable variance of 5521,684. All General
Honorable Mayor and City Commission
Ciry of Atlantic Beach
Atlantic Beach, FL -3- February t0, 1998
Fund departments were under budget for a total of $338,931 attd General Fund revenues exceeded
budgeted amounts by $169,192. At September 30, 1997, the General Fund had a fund balance of
$3,314,435.
Also on page 6, the City's Special Revenue Ftmds show a fund balance at September 30, 1997 of
$688,096, of which 5547,884 is reserved for gas tax expendimres, $99,283 for convention
development tax expendimres, and $40,929 for debt service.
On page 7, the City's Capital Projects Fords report a fund balance at September 30, 1997 of
5546,287, of which 5200,000 is reserved for land wnservation.
Page 8 shows the operating results of the Ciry's Enterprise Funds (water, sewer, stormwater and
sanitation, its Internal Service Funds, and its Pension Funds. The combined Pension Funds contain
fund balances of 38,072,324 at September 30, 1997, an increase of 51,555,152 over the prior year.
Investment earnings were SI,428.886, appeox'vnately a 20% remm for the year.
The Enterprise Funds reported a net income of $1,430,713 before transfers and $830,713 aher
transfers, down approximately $4GO,B00 from the prior yeas A detail by fund appears on page 43.
Operating revenues increased over the prior year approximately $270,1100 (fiscal 96 was the last year
of automatic water and sewer rate increases), personal services decreased, and repairs, utilities costs,
and debt service increased. In addition, net income does not reflect capitalized interest costs of
$632,705 or interest earnings of 5574,793, principal due, or capital expenditures which would need to
be considered in a cash basis or budget analysis.
We hope this information assists you in your review of the City's audited financial statements for the
year ended September 30, 1997. Please let us know if we can be of further assistance.
Sincerely,
PURVIS, GRAY AND COMPANY
7oseph J. Welch, C.P.A.
Audit Partner
IIW/abb
cc: Mr. Tim Iarboe, City Manager
FINANCW. STATEMENTS
AND
INDEPENDENT AUDITORS'REPORTS
1
CITY OF ATLANTIC BEACH
ATLANTIC BEACFi~ FLORIDA
SEPTEMBER 30, 1997
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FINANCIAL STATEMENTS
AND
INDEPENDENT AUDITORS' REPORTS
CITY OF ATLANTIC BEACH
ATLANTIC BEACH, FLORH)A
SEPTEMBER 30, 1997
CONTEN75
Page
Independent Audttors' Report 1-2
General-Purpose Finandal Statements
Combined Balance Sheet - AB Fund Types
and Account Groups 3d
Combined Statement of Revenues, Expendimrce
and Changce in Fund Balances -All Governmental
Fund Types and Expendable Trust Funds 5
Combined Satement of Revenece, Expendhurce
and Changce in Fund Balaacce -Budget and
Actual -All Governmental Fund Types 6-7
Combined Statement of Revenues. Expenses and
Changce in Retained EamingsfFund Balances -
All Proprietary Fund Types and Pension Trust
Fund 8-9
Combined Statement of Cash Flows -Proprietary
Fund Types -Enterprise 10-11
Notes to Financial Statements 12-33
Combining and Individual Fund Statements end Srd:~ :;• to
General Fund
Schedule of Expenditures -Budget atd Actual 34-35
Special Revenue Funds
Combining Balance Sheet 36
Combining Statement of Revenue, Expenditurce
and Changes in Fund Balances 37
Capital Projects Funds
Combining Balance Sheet 38
Combining Statement of Revenue, Expenditurce
and Changes in Fund Balances 39
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FINANCIAL STATEMENTS
AND
INDEPENDENT AUDITORS' REPORTS
CITY OF ATLANTIC BEACH
ATLANTIC BEACH, FLORH)A
SEPTEMBER 30, 1997
CO.YTENTS
(Contlrtued)
Page
Combining and Individual Fund Statements and Schedule
(Concluded)
Enterprise Funds -Proprietary Fund Types
Combining Balance Shell 40-02
Combining Statement of Revenues, Expenses and
Changes in Retained Earnings 43-05
Combining Statement of Cash Flows 4(r5I
Schedule of Net Revenues in Aceordance With Bond
Resolutions 52
Fiduciary Funds
Combining Balance Sheet 53
Combining Balance Sheet -Pension Trust Fund 54
Combining Statement of Revenue, Expenses and Changes
in Fund Balat~e 55
Additional Information
Pension Schedules
Pension Revenues By Source and Expenses By Type 56
Computed Pension Convibution Comparative Schedule 57
Analysis of Pension Funding Progress Sg
Bond Covenant Continuing pisclosures
Selected Financial Information and Operating
Data Regarding the System:
Historical Revenue and Expense 59
Major Utility Customers (Unaudited) ti0
Summary or Water Usage (Unaudited) 61
Summary of Wastewater Production (Unaudited):
Atlantic Beach Sewer Division 62
Buccaneer/Oak Harbor Sewer Division 63
Report on Sewerage System CapKal Improvement Account
Independent Accountants' Repott 64
1
FINANCIAL STATEMENTS
AND
INDEPENDENT AUDITORS' REPORTS
CITY OF ATLANTIC BEACH
ATLANTIC BEACH, FLORIDA
SEPTFd11BER 30, 1997
CONTENTS
(Concluded)
Page
Additional Elements of Report Prepared In Acardance Wtth
Government Auditing Siandaids, Loved By the Comptroller
General of the United States and the Rules of the Auditor
Genera! of the State of Florida
Sdiedule of Expenditures of Federal Awards 65
Independent Auditors' Report on Internal Control Strodure
Based on an Audit of General-Purpose Finandal Statements
Performed in Aaordance Wlth Government Auditing Standards 66-67
Independent Audttors' Report on Compliance Wtth Laws
and Regulations Hosed on an Audtt of General-Purpose
Financial Statements Performed N Accordance With
Government Auditing Standmds fig
Independent Auditors' Report on Examination of ManagemenNs
Assertion About Compliance With Specified Requtrements 69
Management Letter 70-71
Management Response 72
C~
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' INDEPENDENT AUDITORS' REPORT
' Honorable Mayor, City Commission and City Manager
' City of Atlantic Beach
Atlantic Bezch, Florida
We love audited the accompanying general-purpose financial statements of the City of Atlantic Beach,
' Florida az of September 30, 199'1, and for the year then ended, az listed in the accompanying table of
contents. These general-purpose financial statements are the responsibility of the City's management.
Our resporsibility is to express an opinion on these general-purpose financial statements based on our
' audit.
We condoned our audit in accordance with generally accepted auditing standards and the standards
applicable [o financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States. Tbose standards require that we plan and perform the audit to obtain
reazonable 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 weB az evaluating the overall general-
' purpose financial statement presentation. We believe that our audit provides a reazonable bazis for our
opinion.
' In our opinion, the general-purpose financial statements referred to in the firs[ paragraph present fairly,
in all material respects, the financial position of the City of Atlantic Beach. Florida az of September 30,
1997, and the results of its operations and the cazh flows of its proprietary fund types and nonexpendable
' trust fund for the year then ended in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated December 9,
' 1997, on our consideration of the City of Atlantic Beach, Florida's internal wnvol structure and a report
also dated December 9, 1997, on its compliance with laws and regulatiotu.
c•runw Poa¢ Ar:comdanra
P.O. Box 21999.222 N.E. tat Street • Gainsavire. Florida 32602 • (752) 77&2161 • FAX (752) 77&2505
Laurol Rope Prolessional Center • 2317 S.E. /7N Street • Ocab, Faxida 3N77 . (352) 7723672 • FAX (35I) 772-0512
' M7 East Colbpe Arenw • TaaaMSSee. Fbraa 32707. (850) 22a77U • FA%I650) 221-1762
2677 R+g6M 8aubvard, Ural 10&B • Sanwb, Fbrid• 31276 • (911) 3ES3771 • FA% (W t) 365-0236
.ureraaarNUrieuonoaio.aermrr[sot crara~fnruelx: •ocaarrnrs
1FlMflt OIUEIYY MirINFCFCF11iertDR4lC•OCdMtMfe MNAtECf/iANFl IJOIfC IN.CfKE exCigMa
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Honorable Mayor, City Commission and Ciry Manager
City of Atlantic Beach
Atlantic Beach, Florida
INDEPENDENT AUDI7'OR.F' REPORT
(Concluded)
Our audit was conducted for the purpose of forming an opinion on the general-purpose financial
satements taken az a whole. The wmbining and individual fund financial statcments and schedule of
expenditures of federal awards listed m the table of contemn, az well az the pension schedules and bond
covenant wminuing disclosures, are presented for purposes of additional analysis and are not a required
part of the geceral-purpose financial statements. Such information, except the portion marked
'unaudited,' on which we express no opinion, has ban subjected [o tbe auditing procedures applied in
the audit of the geceral-purpose financial stazements and, in our minion, is fa'vly stated in all material
respects when considered in [elation to the general-purpose financial stazements taken as a whole.
December 9, 1997 ~ ~ d ~~~
Gainesville, Florida ~i t,tr~r '~~ lJ.fl -- /-
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GENERAL-PURPOSE FINANCIAL STATEMENTS
These basic statements provide a summary overview of the fmancial position of all funds and account
groups, az well az the operating results of all funds and cash flows of the proprietary fund types. They
also serve az an introduction to and summary of the more detailed statements incWded in the
accompanying information section.
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 1997
CITY OF ATLANTIC BEACH, FLORIDA
PldtRd»9y Acmm/ Groups
Cmeeme6lal Fiord
Types ProprMaryP®d Types Ftmd rYPes (.e6en1 Ge6en1 T91ab
S DeDI Gp Imeroal T9mt and lacq•Te9m Fked (Memon6d®OOIy)
Asset Cenenl McOa Senke Projects F.olerysbe Senla Aget197 ObRgalbm A55da 1997 19%
Cash and Caab Pquivalu6 s 2,98,171 f 613,601 f 1],x20 f 317,762 f 1,863,992 S 6]0,88 f 9,663,060 f 7,737,3x6
lmrnmenu 7,9x1,324 ],9M,51{ 6,420,260
Auwds Reaivabk Ma of ABoraem) 263,120 370,332 x33,6]2 ]M,601
Spaial A,xwomtRCaivlblC-
Cotma 3{.091 71.094 7x.838
Nde Resivabk- Ntrtd 10,362 Id,162 10,362
Duc Pmm OIM1R Pn119i 69,131 40,108 109,339 69,271
Due Fmm Cxlw Gweemraas 239,212 102,201 761,N1 119,212
fmnaorirs 22,569 ]1,0]6 93,603 62,166
Dcpouts 3.009 5.009 3.009
F1cP+b F.vFcmr 300 f 21,5]3 25,015 13,062
plre Nrtn Auda 50.])6 50.]36 50.86
ReaViaed Aeaga:
Ca,h a,tl Cash Pquivalyda 11,921,506 11,921,506 17,636,0]5
Ca,h WiN Final Afed 603.790 607.]90 701,122
Ibarn Rcaivabc 2]6,036 216,456 35],912
Spxul Aawemne Reaivabk-
lonx-rum 609.717 609,71] 69],Ola
Nbc Rtssivabe - Iung Tum %,4' 1 %,Nl 1%,x03
Pmaetly, Pan aM PgOilmirnt-
Nd 21.267,672 123,130 f 6,]62,]94 7!;172,116 28,]SU,699
CuonmdaM,aPmgraa 7,623,139 371,98 1,19x,m1 1,/)D,141
Ummon's<6 Loan CoYa 465,111 1x5,413 4%,]76
Artwb Available in pM Ponds
Por Paymo6 of lung-Tum Debt f x1,719 81,]19 111,696
Ammon b be PlmiMd Pm
Payman of long-Term Deb 1.661,016 1,6M,016 2,312,516
AnnuN to 6c FrovW W Fm
Paymcb of LonB~Tam Portion
arCmnpematoS Absen¢a 22).62) 223.x21 208,301
7dal A5seb f 3,517.018 f ]15,802 S ~].620 S SS7,F70 S N,692,68b f 116,83 f 8,655,282 f 2,192,566 f 7,157,726 f 67,735,U9 f 61,639,909
See accompanying noes.
3
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COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 1997
CITY OF ATLANTIC BEACH, FLORIDA
(Concluded)
Iiaulida a9d Pod P.gaay
IbWRi
a
Amway Pagable and AaaueSlfa6ilifw
1 761.2411 1,180
Duero00ax Pueda 40,106 50,326
Due b OJax Govmwmla 205
DaPodb 5,959
De[aad Rwaaa: 3,000
G,md Iiab0ilia (Paga6k Pmm
ReaRiaYN Aaaa):
f 7.563 3 130,113 S 73,616 S 5,708
11,901
261,231
A,561
S 322.761 f 611,761
109,339 69,711
205 0
256,310 335,164
45.561 23,920
Amum Payable 130,109 110,309 276,279
Nacs Rgable-Cr+lf Bav< 30,130 30,550 27,773
tacaeat Rn6k 607.790 607.790 701.121
Dc1ertW CompuuaYOn 516,766 516,766 M7,172
IamOn,ca aM l.mac Oblipliom 16,)20 f 165,921 161,2{1 351,]75
Rwaue BOMSPa)abk 21,246,432 99],776 21,240,110 23,707,67A
Nan Payable- Culf Itrme 960,361 609,066 1,769,450 1,057,271
Acaual Campnualed Abaarea-
Im¢-Tam 227.627 227.823 106.305
igal l2ab0ides 231.61) 57,706 ~ 0 7,563 21,366,700 106A31 322,496 ,191, S 0 37, ,537 26,190,515
Prod Fg9ky
Cwaaibukd GpiW 6,766,012 6,766.012 6,990.417
Imewnce b Gcrcnl Furd Aatla 7,15],716 7,151,316 6,660,936
Raaine6 Pvviga:
RamW Pw Ra,cval and Replaocmaa 2.000.000 1.000.000 2,000,000
Raaved Pw Deb Swim 1,118,311 1,116,541 21,676
Vmrxrvd Adainei PVVi,ga 10,239,105 19,674 10,279,279 W,121,041
Port. Balamm:
RaavW Pw Payara of So,Y-Tam bete 10.929 43,610 U,719 365,316
Raavad Pw Pdice Tni~un6 and
Udv Fipagiam 1.436 11.961 60,462 63.372 707.942
Raaned Pw Raian,ea 8,072,721 6.072,714 6,517,171
Odv Raervm 2).069 607,16] 215,657 905.913 127,077
Un,amcd Pund Rahnm 3,289,940 169,106 3,579.016 1,015,796
TaW Faad Pgdry 3,714,413 666,096 47,620 316,287 10,123,966 79,874 6,132,766 0 1,117,326 40,046,612 36,149,79{
ToW ILlalble and Prod PNd4 S J,N7,OM 5 743,802 IJ,610 S 35],6/0 M,692,668 f 146.713 8,655,262 ~ 7,157,326 67,733,119 61,6)9,909
Rdo9laq Aanmt Cmaps
Cmenm,enulPwd Types !'IWakuq Prod Types Feed Types Ceaiual Geuenl Taub
l Ikfd Gpiul I~eaeal Trmlaed I,oog-Team Plied (Me4mnnd®Oely)
Geoenl Reamue Seayke Prolecu Emeryrbe Seeks Agea7 ObOgaUOm AbSISS 1997 1!6
See accompanying notes.
4
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES RQ FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997
CITY OF ATLANTIC BEACH, FLORIDA
Fldutiary
Gorenmmtal Paad Types Paad Totals
Special Dept CapYal Expendahk (Memorandum ony)
Genenl R<rnoe Serrke Projects Trust 1997 19%
Rernues
Tura S 2.463.338 S 510,782 S O S O S 0 52,974,120 22,890,880
Lianas am Pttmitt 212,396 0 D 0 0 212,396 203,243
Sate-Shand Revem,.• 1.267,620 0 0 0 0 1,267,620 L245,941
Other ldergovemnunul Revenues 398,536 72,725 0 289,105 0 759,966 687,841
CHrga Por Services 82,999 0 0 0 0 82,999 69,122
PiW and Porfeaurca 85,375 0 0 0 48.750 134,725 187.356
Intertat Income 172,7/6 25,735 1.343 21,335 2,757 223,546 180.090
Miscellarcau Revenue 126,350 0 0 0 0 126.350 115,473
Trial Remnues 4.809,J90 608,142 1,343 310,490 51,507 5,761.122 5,595,896
Eryendltures
Cuneta:
Cxcenl Gov<rnoxut 585,698 82,369 0 0 0 668,067 655,191
public Safety 2,934,969 19,941 0 0 24,870 2,979,780 3,088,503
Tnmponffion 652,950 0 0 0 0 652,950 648,949
Culture aM Recrnuon 313,395 0 0 0 0 313,395 338,080
Deb Service:
Pisipal RGiremers 0 0 485,449 0 0 485,449 1.160,847
Ideren aM Fi.cal Charges 0 0 130,672 0 0 130,672 150,696
Gpiul Omhy 0 0 0 195,060 0 195,060 690,695
(TOtaI Expead'dara) (4,487,012) (102,710) (fi1fi,121) (195,060) (7.4,870) (5,425,373) (6,732,911)
Ertea~ (Defiekac7) o/ Ranuq Oyer Nodtr) Expeod'4ures 322,378 506,132 (614,778) 115,380 26,637 J55,749 (1,137,015)
Other Financing Sources Nets)
Loan Proceeds 0 0 0 0 0 0 1,462,500
Openting Tnm&n In 607,200 4,985 516,90E 180,379 0 7,309,466 2,179.053
Openting TnmPon Out (512,097) (208,985) 0 0 (7,200) (228.732) (1,541,186)
Taal OtherFWncing Sourus Nsn) 95,153 (204.000) 516,S02 180.779 Q.200) 581,234 2,100,367
Extess (Deikkoq) of Rernoes and Other PWaoeing Sourm
Oyer Nader) Expeoditum and Other Fimntiag Uw 417,SJ1 302.132 (97,876) 295,759 19.437 936,983 963,352
Food Balances, Begioaiog of Year 2,896,909 385,964 141,696 250,528 41.025 3,7!6,117 2,752,765
Pund Balaoto, Eod of Ynr S J,314,435 S 688,096 S 4J,8211 S 546,287 S 60.462 54,653,100 53,716,117
See accompanying notes.
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Rerenua
Tua
Licevus and IkrmEa
SmteSharcd Acvemv
Other (mergwer®enrsl Rweoue
Charges Por Services
Fmer avd Porfeimrca
Imerest lvcvme
Misallaveow R<vemle
Toni Rermva
Expeuditvro
Curren:
Gercnl Gweramem
Public Safety
Tnmportaaon
Cuhurc aM Reereatiw
Ded service:
Prircigl Redrcmem
Iaerca and Fixal Chargu
Gpml Omlay
(Trial Expendtlara)
Excev (Defxkvey) of Rnevua Oyer Nuder)
ErycudRura
Other Fiuaveng Sovrcu Nw)
Openung Thor&n Ia
Opentivg Tnmfen Out
Toni Other Fnmcivg Sovrca Nw)
Fxceu (Delkkucf) of Rereova and Other
Piuaoriag Soured Oyer Nuder) Eapevd'avro
avd Other FinaMing Uxr
Puud Balavca, OHOhtr 1, 1996
Pond Banuca. September 30, 1997
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
ALL GOVERNMENTAL FUND TYPES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997
CITY OF ATLANTIC BEACH, FLORH)A Page I aj2 Pages
Gnenl Puud Special Rermve Puud Debt Serrke Foud
Variaoee Varlaon Varlavice
Paronbk Faronbk Faronbk
Bu et A<mal Naloronbk) Budget Actual Nufarorobk) Budget A ctual Nvfaronbk)
S 2,465,079 52,463,338 S (1.741) f 455.252 S 510,782 S 55,530 S 0$ 0 S 0
170,000 212,396 42.396 0 0 0 0 0 0
1,228.345 1,267,620 39,275 0 0 0 0 0 0
d43,t59 398,576 (44,623) 167,770 72,325 (95,445) 0 0 0
109.304 82,999 (26,305) 0 0 0 0 0 0
83,500 85,375 1,875 0 0 0 0 0 0
110,000 172,776 62,776 0 25,335 25,335 0 1,343 1,343
30,811 _ 126,350 95,539 0 0 0 0 0 0
d,640,198 9,809,790 169,192 623,022 608,442 (14,580) 0 1,347 1,343
637,702 585,698 48,004 66,847 82,369 (15,522) 0 0 0
3,187,961 2,934,969 252,992 2d,575 19,991 4,6M 0 0 0
715,569 652,950 62,619 D 0 0 0 0 0
336,711 317,395 25,316 0 0 0 0 0 0
0 0 0 U 0 0 483,729 485,149 (1,720)
0 0 0 0 0 0 131,174 130,672 502
0 0 0 0 0 0 0 0 0
(4,875,943) (4,487,012) 388,931 (91,422) (102,310) (10,888) (614,903) (616,121) (1.218)
(215,745) 322,378 558,123 531,600 506,132 (25,466) (614,903) (614,778) 125
613,dOD 607,200 (6,60D) 5,690 4,965 (905) 516,902 516,902 0
_ (482,208) (512,047) (29,839) (240,585) (208,985) 37,600 0 0 0
131,592 95,153 (76,d39) (234,695) (204,000) 30,695 516,902 516,902 0
(104,153) 417,531 521,684 296,905 302,]72 5,227 (98,001) (97,876) 125
0 2,896,904 2,896,904 0 785,969 365,964 0 141,696 141,696
S (104.153) 53,314,435 S 3,418,588 S 296,905 S 688,096 S 391,191 S (96,001) S 43,820 S 141,821
See accompanying notes.
6
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANCES IN FUND BALANCES -BUDGET AND ACTUAL
ALL GOVERNMENTAL FUND TYPES
FOR TFIE FISCAL YEAR ENDED SEPTEMBER 30, 1997
CITY OF ATLANTIC BEACH, FLORH)A Page 2 df 2 Pages
CapYal Ikoletla Foods Took (Memorandum Only)
Varknee Variance
Parmabk Faronhk
Bodges Atluai Nnfaron6k) Budget Actual Nofaronhk)
Rereuues
Tun S O f O f 0 52,920,371 32,974,120 S 53,789
Licensees and P<rmes 0 0 0 170,000 212,396 42,396
Sate-Shared Revenues 0 0 0 1,228,345 1,267,620 39,275
OOser lvtergwetomesul Revenue 289,105 289,105 0 900,034 759,966 (160.068)
Charge Por Servkn 0 0 0 109,304 82,999 !16.305)
Pine sod Porfeeurea 0 0 0 83,500 85.375 1,875
Imertu lncwro 5,000 21,335 16,335 115,000 220,789 105,789
Miueluneom Revevue 0 0 0 30,811 326.350 95,539
Told Rerenaes 294.105 310.410 16.335 5,557,725 5,729,615 172,290
RzpendRures
Cunen:
General Gwecnmem 0 0 0 700,519 668.067 32,482
Public Safuy 0 0 0 3.212,536 2,954,910 257,626
Tnmporuuon 0 0 0 715,569 652,950 62,619
CuBUm and Recna6on 0 0 0 378,711 Jll,395 25,316
Debt Service:
Principal Ruiremett 0 0 0 483,729 455,449 (1,721q
Inurtn and Piscal Charge 0 0 0 131,174 130,672 501
Capful Om1aY 183,554 195,060 (11,506) 187,SSd (95,060 (11,506)
(TWI Rrymd@ura) (IBl,55q (195,060) (11,506) (5,765,822) (5,400,503) 365,319
Rzuss Nefkkuc7) of Rereoon Oren Nndn)
Rxpeuditurn 110,551 IIS,J80 4,829 (208,497) 329,112 577,609
Older Pouncing Sources Nses)
Operating Tnmfen lu 140,271 180,379 40,108 1,276,863 1,309,466 72,603
Openung Tnmfen Out 0 _ 0 0 (Y22,793) (721,032) 1,761
TWI ONe- FNanc:ag Soarcn (Use) 160,271 180,J79 40,108 559,070 588,4M 74,361
Rzcess (Ddkkne7) of Rernon and Other
Pmancmg Sauna Oyer Nnder) BzpeodRorn
and Other Flnanciog Uses 250,822 295,759 44,937 345,573 917,516 571,973
Puud Balances, October 1, 1996 0 250.528 730,528 0 3,675,092 3,675,092
Fond Balances, Segember 30, 1997 S 250,822 f 546.287 f 295,465 f 345,573 54,592.636 S 6,257,065
See accompanying nae.5.
~ ~ ~ ~ ~ O ~ ~ ~ ~ ~ ~ r ~ ~ ~ ~ ~ ~
r a v ~ ~ r s ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ r
COMBINED STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS/FUND BALANCES
ALL PROPRIETARY FUND TYPES AND PENSION TRUST FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997
CITY OF ATLANTIC BEACH, FLORIDA
Operating Revenues
(aerfum Chargm
Glummer Charges
Pmployer's CoWibmiom
Enployw' Conlrideiom
Slam Couribmiam
Parniogs on Imntnx0u
pher Income
Total Operating Reveoon
OpenOng e8peusea
Persoml Services
Cotanclml Serviw
Supplies
Repairs aM Maitlemnte
Heal. Light std Power
Deprecudon
gher expemra
Retirtmoa Beafila aM Refunds
(fdai Operating a:pen.e,)
Operating Income
NoooperaHng Iowme (Expeo4ea)
Comnction Charges
Sewer Gtnendon Charge
IGC.~sst Ioc[mm
Irtereu expeme
Amon'vaGon of Lma cons
Total NoooperaHng Intome (Expeuaea)
Nel Income Before Operanng Tramfen
F7dodar7
Proprktary Fuods Pand Tolals
Iolereal Pensbo pdemorandom Duly)
eoltrpr4re Senke Trort 1997 1996
S O S 1,276,789 S 0 S 1,276,789 S 1.207.788
5,822,712 0 0 5,822,712 5,604,702
0 0 371,510 331,340 329,495
0 0 98,7/8 98,776 111,431
0 0 106,131 708,131 91,970
0 0 1,428,886 1,428,886 802,69)
370,151 0 0 350,151 296.793
6,172,863 1,276,789 1,9b7,335 9,416,987 8,445,070
879,895 936,5]7 0 1,816,432 1,829,303
889,658 28,179 63,751 987,588 968,004
247,198 62,185 170 309,353 288,900
485.080 79,963 0 504,043 323,603
366.111 5,315 0 371,456 266,282
1,092,346 32,302 0 I,I1A,648 987,162
972.440 171,088 6,137 1,149,665 1,061,592
0 0 360,891 360,891 280,159
(4,911.758) (1,275.569) (430,949) (6.618,276) (6,003,005)
1.261,103 1,220 1,336,386 2,796,711 2,442,063
326,696 0 0 328,896 439,993
127,758 0 0 127,758 126,478
456,442 0 0 456,442 337,587
(725,170 (1.221p 0 Q26.39q (323,521)
(18,317) 0 0 (18,317) (8,906)
169,506 (1,21Aq 0 168,388 371,631
1,430,713
0 1,536,386 2.967.099 2,813,696
See accompanying notes.
8
COMBINED STATEMENT OF REVENUES, EXPENSES AND
CHANCES IN RETAINED EARNINGS/FUND BALANCES
ALL PROPRIETARY FUND TYPES AND PENSION TRUST FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997
CITY OF ATLANTIC BEACH, FI.OR[DA
(Cpttcluded)
Other Floaaeivg Soonea Nan)
Opendng Tmmfm In
Opentiug Tremfen Out
Tonl Other Fuumelag Sonrea Naa)
Net Iocoou
DepreWfba oo FMed Asxn Acgo4ed B7 Slate+Shared
Ramon Bn<roaB7 Reatrkted Por Gphai Acgold0oa
locreax to Relalned EardogyFnod Balaocea
Renfoed RarniugyFond Balanea, Beglooivg of Yeu
Rehiued RarulogelFund Balaoeea, Rod of Year
Pidorlsry
Proprknq Fmd~ Fand Touts
Inlenul Pendon (Memoraudom Od7)
Eolerprhe Seale Trmt 1997 19%
S O S O S 18,766 S 18,766 S 12,133
(600.000) 0 0 (600.000) (650.000)
(600.000) 0 18.766 (581.234) (637,867)
830,713 0 1,555,152 2,385.865 2,175,829
222,357 0 0 222.387 222,387
1.053,100 0 1,555,152 2,805,252 2,398,216
12,304,Bi6 39,674 6,517,172 18,561.892 16,063.676
S 17.357,916 E 39,874 S 8,072.324 S 21,470.140E 18,861,891
See accompanying notes.
9
r r r ~s r r r r r ~r r. r.. ~r r r r
r-
L~
' COMBINED STATEMENT OF CASH FLOWS
PROPRIETARY FUND TYPES-ENTERPRISE
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997
CITY OF ATLANTIC BEACH, FLORH)A
Cash Flows Fram Opentiog A,div[tid
Opentivg lucome
Adjmweda so Recoacik Opensing Iucome to
' NU Cash Provided By Opendom:
Deprtcktion of Plaas
Chaagm in Auw - Osxrtase) Decrtase:
Acceuds Rev)vabk
Due Pram Other Gwemmeda
PRpaid P.xpemes
lavedmy
Chaagea in LsabiWks - Increase (Deesrau):
' Avouds Ryabk and Avsued I.iabisab•
Customer Depmas
Due m Qher Gwenmeds
Deferted Revemss
' Due to OOu:r Puads
Net Cash Provided BI Operadag Adivgks
' Gsh Fbws From Noaraphal Flaaadag Actlvkka
COOKCIIOY C6rrgt9
Sewtt Genentioe. Char6ea
Opentiug Trawlers Om m OIMr Puads
' Net Cuh Nsed Ia) Naoraphal Ffoaxiag
Actirhka
Cash Fbws From Gpilzl aad Related Finaathsg
AeOvBks
Revenue Bose Proceeds
Nate Proceeds
' Loan Cosa
CoOeuiom w Iderest Revivable
Collediom oa NoR Revivable
Coliect:om w Special Assvsmeds
Property, Pled sod P.quipmed Additiom
Prircipal Paymeds w Boods aad Noes Payable
IOIeRaI Hld
Net Cash Nsed Ia) Provided B7 GpBal aad
Rehkd Fiaaatfug AG'nhka
Cash Fbws From IosesOag AWvhks
Imertst Income
1997 1996
Iukraal (1lfemonndum
Eaterprlx Sereke Talal Onll)
S 1.261.105 S 1,220 3 1,262,325 S 1,442.766
1,092.346 32,302 1,124,648 987,162
()5,267) 0 (75,267) 76,158
0 0 0 5,950
o (~A.s74> (u,s7a) la,3ao
(12,039) 0 (12,039) 0
(146,516) (725) (147,241) (274,934)
(46,854) 0 (48,854) 30.873
0 0 0 (2,600)
27,140 0 27,140 (10,571)
0 14,905 14,905 0
2,097,915 23.128 2,121,043 2,269,096
32.,896 0 328.896 639.993
127,758 0 127,758 128,478
(600.000) 0 (600.000) (650.000)
(143,346) 0 (143,346) (83,529)
0 0 0 22,330,662
0 0 0 2,526,551
(4.994) 0 (4.994) (414.690)
79,886 0 79,886 5,737
10,362 0 10,362 10,362
62,065 0 82,065 102,769
(2,870,039) (1,823) (2,887,882) (5,233,717)
(27,713) (17,538) (45,311) (1,871.975)
(1,326,666) (1,220) (1,327.888) (267,916)
(4.057,181) (26,581) (4,083,762) 11.155,543
1,031,235 0 1,031,235 337,587
Net (Deveax) laaease m Cash and Cash
Egohakab (1.07),371) (3,453) (1,074,830) 13,678,699
Gsh aad Gsh EgaFakata, October 1, 1996 18,162.617 3,453 18,466,070 4,787,371
Cash aad Cash Pquhakats, Sepltmlxr 30, 1997 3 17,391,210 3 0 S 17,391,210 S 16,466.0'70
See accompanying notes.
IO
COMBINED STATEMENT OF CASH FLOWS
PROPRIETARY FUND TYPES-ENTERPRISE
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997
CITY OF ATLANTIC BEACH, FLORH)A
(Concluded)
Balaote Sheet Componevu oI Cash and
Cash Fgviralenu
Cash am Cash P4nivelem
RestrinN Asses:
Gah and Gsh Pquivaknu
Gsh 9ltah PnGI Agem
ToW Cash avd Cash Fgvlralevu -Pad
of Year
Noveash AsYisY7
Gpiulized Iourtac Pspemt
Re-mve Bond Proceeds
Pat
)
AecNW Imertst
Net Proceeds
1997 1996
Interval Qdemeraodnm
Enterprlte Serrke 7ofa1 Do17)
f /.865,942 f 0 5 4,865,948 f 3,925,573
11,91L508 0 11,921,506 13,836,075
603,790 0 603,790 704,422
S 17,391,240 f O f 17,391,210 f 18,466,070
S 57,852 S O S 57,852 S 10,249
S O f O S O f 22.835,000
0 0 0 (635,380)
0 0 0 130,822
S O f O S 0 S 22,330,412
Sce accompanying no16s.
r
r
11 '
NOTES TO FINANCIAL STATEMENTS
' CITY OF ATLANTIC BEACH, FLORIDA
e Note 1 - Summery of Significant Accounting Polldes
The City of Atlantic Beach, Florida (the City) is incorporated and operates under a form of
' government which comprises an elected City Commission (four Commissioners and a
Mayor-Commissioner) and provides, under the administration of an appointed City Manager,
the following services: public safety (police and fire), public works (streets and
' infrasavcture), recreation, sanitation, stormwater, planning, zoning, water and sewer
services, and general and administrative services.
' The accounting policies of the City conform to generally accepted accounting principles as
applicable to governments. The following fr a summary of the more significant policies used
in the prepazation of these financial statements.
Reporting Entity
As outlined in Goverrunental Accounting Standards Board (GASB) Statement No. 14, The
Reporting Entity, the financial reporting entity consists of the primary governrrtent,
organizations for which the primary govertunent is financially accountable, a,>d other
organizations whose exclusions would cause the reporting entity's financial statements to be
misleading or incomplete. Fach potential component unit is individually evaluated using
specific criteria outlined in GASB Statement No. 14, to determine whether the entity is: a)
part of the prirnary government; b) a component unit which shoui6 be included in the
reporting entity (blended or discreetly presented); or c) an organization which should be
excluded from the reporting entity entirely. The principal criteria for classifying a potential
component unit include the legal separateness of the organiration, the financial accountability
of the primary government for the potential component unit resulting from either the primary
1 government's ability to impose its will on the potential componem unit, or the potential
component unit's fiscal dependency on the primary government. Based upon the application
of these criteria, the City has no component units.
Fund Accounting
The accounts of the City are organized on the basis of funds or account groups, each of
which is considered a separate accounting entity. The operations of each fund are accounted
for using a separate set of self-balancing accounts which comprise its assets, liabilities, fund
equities, revenues and expenditures. The various funds are grouped by type in the financial
' statements. The following fund types and account groups are used by the City.
^ Governmental Fund Types
General Fund -The general fund is the general operazing fund of the City. It is used
to aaount for all financial resources, except those required [o be accounted for in
another fund.
' Special Revenue Funds -The special revenue funds are used to account for the proceeds
of speck revenue sources (other than major capital projects or expendable trusts) that
are legally restricted to expenditures for specified purpous.
IJ
12
1
Note 1 -
NOTES TO FINANCIAL STATEitdENTS
CITY OF ATLANTIC BEACH, FLORIDA
(Continued)
Summary of Significant Accounting Policies (Condrrued)
Fund Accounting (COndnued)
^ Governmental Fund Types (Concluded)
DeM 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 obhgations payable from the operations of the proprietary fund types.
Capital Projects Funds -Capital projects funds aze used to account for the financial
resources to be used for the acquisition or conswction of major capita facilities (other
than those financed by proprietary fund types and special revenue funds).
^ Proprietary Fund Types
Enterprise Funds -The Ciry maintains two enterprise funds; the utility fund and the
sanitation fund. The utility fund is comprsed on the following systems and accounts.
^ Water System -Used to aceoum for aUivifies of the water system.
^ Sewer Sys±em -Used to account for aMivities of the sewer system.
^ Stormwater System -Used to account for activities of the stotmwater system.
^ Bond Construction Account -Used to account for expenditures of utility revenue
bond consttnttion account proceeds for wattt, sewer, and stormwater system capital
projects.
^ Bond Capitalized interest Account -Used to account for certain debt service
paymrntr on utility revenue bonds, using bond proceeds resviaed for that purpose.
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
costr of providing goods or services to the general public are financed or recovered
primarily through user charges.
Internal Servke Funds - Internal service furls 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 Types
Trust and Agency Funds -Trust funds are used to account for assets held as a trustee
or agent by the Ciry for others. The pension wst fund is accounted for in essentially
the same manner as proprietary funds. The expendable trust fund tr accounted for in
essentially the same manner as governmental funds. Agency funds are custodial in
nature (assets etryat liabilities) and do not involve measuremrnt of results of operations.
13
i
0
' NOTES TO FINANCIAL STATEMENTS
CITY OF ATLANTIC BEACH, PLORH)A
(Continued)
' Note t - Summary o[ Signlflcant Account[ng Policies (Continued)
Fund Accounting (Concluded)
^ Account Groups
General Long-Term Obligations Account Group -This atxount 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.
' Genera! Fined Asset Account Group -This account group is used to account for all
fixed azsets of the City other than those aceounted for in the proprietary fund types.
Basis of Accounting and Measurement Fates
The accounting and reporting treatment applied to a fund is determined by its measurement
focus. All governmental funds and expendable wst funds are aaounted for on a spending
' or 'financial flow' meazurement focus. This means that only current assets and current
liabilities are generally included on their balance sheets. Their reported fund balance (net
current users) is considered a meazure of 'available spendable resources.' Govermnental
fund operating statements present increases (revenues and other financial sources) and
decreazes (expenditures and other firuncing uses) in net current assets.
The governmental fund types, expendable wst fund and agency funds use the modified
accrual basis of accounting. Under the modified accrual bazis, revenues are recognized in
the accounting period in which they become measurable and available. 'Meazurable' means
that the amount of the transaMion can be determined; 'available" means the revenue must
be collectible within the current period or soon enough thereafter to be used to pay liabilities
of the current period. Expenditures, other than interest on general long-term debt which is
recorded when due, are recognized in the accounting period when incurred.
All proprietary funds and the pension wst fund are accounted for on a cost of services or
"capital maintertance' meazurement focus. This means that all assets and all liabilities
' (whether current or noncurrent) azsociated 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 increazes
(revenues) and decreazes (expenses) in net total assets.
The proprietary fund types and pension wst fund use the accrual bazis of accounting.
' Revenue is recognized when earned and experues are recognized when incurred. Water,
sewer, sanitation and stormwacer services are billed to customers in advance on a quanerly
cycle, with excess 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 considered unwllectible.
Proprietary fund types follow all applicable GASB pronouncements as well as the following
pronouncements issued on or before November 30, 1989, unless those pronouncements
conFlim with or convadict GASB pronouncements:
1 14
Note 1 -
NOTES TO FINANCIAL STATEMENTS
C[TY OF ATLANTIC BEACH, FLORIDA
(Cantmued)
Summary o[ Significant Accounting Policies (Continued)
Basis of Accounting and Measurement Focus (ConNuded)
^ Financial Accounting Standards Board (FASB) Statements and Interpretations;
^ Aaounting 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, m its proprietary fund type activities.
Budgets
General gmvernmenal revenue and expendimres 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 az varying levels of classification
devil; however, expenditures canna legally exceed total appropriations at the individual
fund level. Encumbrances are not recorded. Unexpended items at year end must be
reappropriatal in the subsequent year.
Budgets have been adopted for all governmental funds (geceral, special revenue, debt service
and capital projects funds). The City Manager is authorized to transfer budgeted amounts
within deparunents within any fund; however, any revisions that increase the total
expenditures of any depamcem or fund must be approved by the City Commission. All
necessary supplemental appropriations were adopted by the City Commission as part of a
quarterly budget review process and are included in the reported budgetary data. The budget
presented on the combined stamment 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 combiced to form a pool
of cash and investments. Investments in the pooled cash fund consist primarily of invested
cash and certificates of deposit which mature in one year or less plus 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 cost, except for the investments of the deferral compensazion and
pension trust funds, which are valued at market (see note 2).
For the purposes of the statement of cuh flows, the City considers cash and cash equivalents
[o include cash and investments with an original maturity of three months or less.
Receivables
Receivables are recorded at their net realizable value. The allowance far uncolleMible
accounts and assessments at September 30, 1997, in the enterprise funds is 5378,729.
IS
1
1
1
i
NOTES TO FINANCIAL STATEIYfENTS
' CITY OF ATLANTIC BEACH, FLORIDA
(Continued)
' Note I - Summary of SigntOrant Accounting Policies (Continued)
Inventories
' Inventories consisting principally of expendable materials, supplies and fuel are determined
by physical count at the City's year end on a bi-awual bazis and are valued at the lower of
cost (first-in, first-out) or market.
1 During the year, inventory in the general fund fr recorded az an expenditure at the time of
purchaze (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 no[ 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 agrcemenu and City Ordinances. These azsets are Iegatly restricted
' for specific purposes, such az debt service, new comswctioq and renewals and
replacements.
Accounting For Fiaed Assets
Proprietary fund capital excendimres made for revenue-producing azsets, which are
employed in operations that are accounted for in the proprietary funds, are capitalized at
' historical costs and depreciated using the straight-line method over their estimated useful
lives az follows:
' Buildings and Improvements 40 Years
Improvements Other Than Buildings 10-50 Years
Equipment 3-40 Years
' Conributed azsets are recorded at fair market value at the date of contribution. Depreciation
recognized on azsets acquired or conswcted through resources externally resricted for
' capital acquisitions is closed to the appropriate contributed capital (fund equity) aceount.
General fixed azsets are fixed azsets used in governmental fund type operations and are
accounted for in the general fixed azsets 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 bas been provided on general
fazed assets. Public domain ('infrastructure') general feed azsets such az streets and
' sidewalks that are generally immovable and of value only to the City have not been
capitalized.
' 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 rewrded
' in the applicable fund. General obligation bonds and other forms of long-term obligations
supported by general revenue are obligations of the City az a whole and not its individual
16
1
Note 1 -
NOTES TO FINANCIAL STATE11dEN7'S
CITY OF ATLANTIC BEACN, FLORIDA
(Cartanued)
Summary of Significant Accounting Policies (Continued)
Accounting For Long-Term Obligations (Concluded)
consument funds. Accordingly, such umnamred obligations of the City are aceounted for
in the general long-term obligations account group (see note ~.
Compensated Absences
Accumulated unpaid vacation and sick pay are accmed when incurred in the enterprise funds
and the general long-term obligations accoum 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 recorded when received and adjusted to the accrual bazis for financial
reporting. Restrided grant revenues, which are received but not expended are recorded az
deferred revenues. Grant revenues receivable are recorded when reimbursable expenditures
on those grants have been incurred but na reimbursed.
Properly Taxes
The azsessment of all properties and the collection of all property taxes are made through
the Property Appraiser and Tax Colledor of the City of lacksonvBle, Florida. General
property taxes are recorded az received, in cash, which approximates razes levied less
discounts for the current fiscal year.
Taxes are levied on November 1 of each year. All taxes became delinquent on April 1 of
the following year. Discounts are allowed for early payment. On or prior to June 1,
cenificates bearing interest ar 18~ are sold for all uncolleded real property taxes. Umold
certificates are held by the City of Jacksonville, Florida.
Interfund Transad(ons
During the course of normal operations, the City haz various transactions between funds to
construct assets and comply with local ordinances and other legal restrictions. These
vansadions are refleded az operating vamfers (see note 9). In addition, certain vansfers
have been made between systems and accounts of the utility enterprise fund az required by
bond covenants. These vansadions are accounted for az capital transfers on the combining
statements of the utility fund.
Pension Plans
The City accounts for its pension plans under FASB Statement No. 35, Accoruuing and
Reporting by Defined Benefit Pension Pfau. The pension plans cover substantially all of
the City's full-time employees. The City rewrds pension costs in the period salaries are
earned. Pension expense includes normal cost plus amortization of past urvice cost over
twenty-five years (see note 7).
17
i
1
1
1
' NOTFS TO FINANCIAL STATEMENTS
CITY OF ATLANTIC BEACH, FLORIDA
(Continued)
Note 1 - Summary of Significant Accounting Policies (Concluded)
' Deferred Compensation Plan
The City reports its Internal Revenue Cude Section 457 defemd compensation plan as an
agency fund in accordance with GASB Statemene No. 2 (see nme 8).
' Contributed Capital
Convibuted capital in the proprietary fund types represents convibutions from other funds,
developers, and federal, state and local grant programs. Convibutions are used primarily
' for capital outlay projects and are recognized as increases in equity in the period they are
earned or received.
Reserve of Fund Balances and Retained Earnings
Reserves recorded in the governmental funds represent portions of turd balance which
cannot be appropriated for ezpendimres or which have been segregated for specific furore
' uses. The reserved fund balance in the special revenue funds is for payment of long-term
debt (540,929), road and street ezpendimres (5547,884), and tourism development
(599,283), The reserved fund balance in the capital projects funds is reserved for svcets and
' drainage projects (533,697), tourism development (52,000), police (521,484), and land
conservation (E200,(100). The reserved fund balance in the general fund is reserved for
police vaining (51,426), inventory (522,569) and prepaid expenses (5500).
' Reserves recorder in the enterprise funds aze created by the existence of assets resvicted for
debt service, conswction, renewals and replacements.
Total Columns on Combined Statements
Total columns on the combined financial statements are captioned 'Totals (Memorandum
Only)" to indicate that they are presented only [o facilitate financial analysis. Data in these
' columns do not present financial position, results of operations, or rash Flows in conformity
with generally accepted accounting principles. Neither is such data comparable to a
consolidation Interfund eliminations have not bcen made in the aggregate of this data. The
' totals for 1996 are presented for the purpose of additional analysis and are not a required
pan of the general-purpose financial statements.
' Note 2 - Cash and Investments
The City maintains a cash and investment pool that is designed for use by all funds, except
fo: !hose monies which are periodically vansfered to the pension custodian and the defered
compensation plan adminisvators. In addition, investments are separately held ard
individually accounted for by several of the City's funds where wruractuai artangements and
bond covenants provide for and require such arrangements. The deposits and investments
of the pension Wst fund which have been Vansferted to the pension tarstodian are held
separately from those of other City funds and are required to be administered by an
' investment manager.
IB
Note 2 -
NOTES TO FINANCIAL STATEMENTS
CITY OF ATLANTIC BEACH, FLORH)A
(Continued)
Cash and Investments (Continued)
At September 30, 1997, the carrying amount of cash on hand and on deposit with banks,
including interest-bearing deposits was E83,346, and the related bank balance waz E80,896.
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 Pubhe 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 instimGon.
Any losses to public depositors are covered by applicable deposit insurance, sale of securities
pledged az collateral and, if necessary, assessments against other qualified public depositories
of the same type az 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 Stamtes, which
allows the City to invest ta cert~cates of deposit, money market certificates, obligations of
the U.S. Treasury, its agencies and instrumentalities, repurchase and reverse repurchaze
agrcements co0ateralized by U.S. securities, and the State Board of Adminisvation. The
pension wst funds aze also authorized to invest in corporate bonds, preferred stocks,
common stocks, and mutual funds.
Cash and investments at September 30, 1997, 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 Tmst Departtnent are considered to be category one credit risk
investments, which means that they are fully insured (E 100,000 per participanq. The
deposits and investments with state agencies, and the International City Managers'
Association (deferred compensation) are not clazsified by credit risk since they are held by
independent agencies. The Barnett Bank Repurchase Agrcement is invested in the Barnett
Emerald Treasury Fund and is not clazsified 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
wnswction expenditures. The City receives a guaranteed 5.75 interest rate. AMBAC
can repurchase the investments and 'exchange" them for other investments az long az the
market value is at least I04~ 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 az they are held by a third party custodial agent. At September 30, 1997,
these investments had a cost of E8,774,344 and a market value of E9,470,949.
19
i
i
Note 2
NOTES TO FINANCIAL STATEMENTS
C[TY OF ATLANTIC BEACH, FLORIDA
(Confirmed)
Cash and Investments (Concluded)
The total cash and investment balance of the City at September 30, 1997, is comprised of
the following items:
Cash
Petry Cash on Hand
Checking
Cash With Fiscal Agem
Total Cash
Pension Trust Investmens
Shoff-Term Treasury Portfolio
High-Grade Equity Fuod
High-Grade Equity Ireome Fund
High-Grade Bond Fund
Total Pension Trust Invesfarertls
Investnauls
AMBAC Capita Funding Irc. Repurchase Agreemem
Barrett Batik Repurchase Agreemem
Barnett Emerald Trcanrry Fund
' Iuvaomem~ With ICMA
Invatmcm With Sate Boazd of Administradon
Total lnvestnwdt
' ToW Cash and Investments
(Restricted Cash and Investnrptts)
Tofa1 Unralriged Cash and ]nvrslments
E 2,45[1
80,896
603,790
687,136
222
2,119,783
2,102,970
3.761,549
7,984,524
8.774,344
590,853
155
516,788
11,6(9,082
29,485,746
30,172.882
(12,525,298)
17,b47,584
Restricted cash and investments at September 30, 1997, in the enterprise funds follows:
Debt Service
Renewal and Construction Sinking Gulf
Replaceamd Aaormt Fund Breeze Total
Emerprlse Fund
Utility Fund E 2,1100,000E 6,772,416 E 1,701,753E 51.129 S 12,525,298
Note 3 - Special Assessment
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 waziewater
improvements conswcted by the City in that area. Assessments are payable in equal annual
installments over twenty years plus interest at 8.65%. Initial assessments are based on front
footage.
During 1993, the City imposed a special assessment on residents in a certain area of Ne City
known az "Ocean Grwe Unit 2' to recover the cost of water and waztewater improvements
constructed by the City in that area. Assessmems are payable N equal annual installments
over twelve years plus interest at 5.91 ~. Initial assessments are based on front footage.
20
NOTES TO FINANCIAL STATEMENTS
CITY OF ATLANTIC BEACH, FLORIDA
(Continued)
Note 3 - Special Assessment (Concluded)
Following is a summary of the outstanding balance at September 30, 1997:
Ocean Grove
Section H Unit 2
Assessment Assessment Total
Principal Receivable, September 30,
1997 S 563,848 S 79,993 5 643,841
(Cturent Portion) (21,868) (12,226) (34,094)
Prinrlpel Receivable -Noncurrent 541,980 67,767 609,747
Note 4 - Note Receivable
During 1993, the City signed an agreement with a new mobile home park customer which
allowed the customer m pay its sewer connection foe over as extended period. An initial
down payment of 520,000 waz received in 1993 on the total connection fee of 5175,432.
Per agrcemem, the remainder wi6 be paid in 180 equal installments of 5863.51 6egiming
April 1, 1993, with no interest (510,362 waz received during 1997). The City has reserved
the right to terminate service in the event of nonpaymem.
Following is a summary of the outstanding balance at September 30, 1997:
Prircipal Receivable, September 30, 1997 S 108,803
(Current Porion) (10,3b2)
PrinUpal Recelvabk -Noncurrent 98,441
Note 5 - Property, Plant and Equipment
A summary of changes in general filed assets follows:
Balance Balance
10/1/96 AddRions (
Dix ~sell
) 9/30/97
Land 808,851 5 ~
0 5 ~
~
0 08,851
Buildings 2,475,203 8,727 0 2,483,930
Improvements Outer Than
Buildings 776,404 112,564 0 888,968
Equipment 2,339,536 290,790 (29,681) 2,600,645
Construction-in-Progress 280,960 93,968 0 -374,932
Total Property, Plant and - ~
Equipment S 6,680,958 S 506,049 S (29,681) S 7,157,326
21
i
i
NOTES TO FINANCIAL STATE[YTENTS
' CITY OF ATLANTIC BEACH, FLORIDA
(Continued)
' Note 5 - Property, Ptant and Equipment (Concluded)
A summary of fixed assets of the enterprise funds at September 30, 1997, follows:
' '
()a
alr 1'mW
ema
BmA Gfaatlnd T9w Taal
t Wale anln Smmwec C9m1+On{W taalm uouq f wurlm Ratvprlse
scum scum srslm ~ an9.1 ~ fine PaWt
1~ S 31,663 f 691,831 f O f O f OS 7{6,]16 f O f ]16,]16
Iaao6ial Plea 0 0 291,]15 0 0 191,]43 0 191,715
' Buildin8l 166,219 1,729,511 0 0 0 1,213,790 0 {,213,790
Mpoveme161
OOr1 ITIn
BuiMie81 7,667,226 15,110,916 210,211 0 0 21,528,351 0 17,526,353
' Machioc,y W
E9uipmem 331,000 621,558 120,825 0 0 1,0]3,361 123,931 1,199,3)9
(Aav,mblcd
' Dcgcdauon)
Comwaioo-io- (2,]68,3892 (5,712,670) (95,251) 0 0 (8,606,5131 (10],553) (8,]11,066)
Ihopm 250,613 607,236 221,262 2JN,006 0 1,823,139 0 J,621,U9
76615 f 6,236,586 3 15.321,2)2 S 768,]89 f 2,7N,006 S O S 23,072,61] f 18,3% S 23,091,011
N
6 L
T
Obli
i
ote
- ong-
erm
gat
ons
' The following is a summary of the long-term obligations of the City for the year ended
September 30, 1997:
' G®ad t.m8-Tam 0682a09es
IatoBmm PropLfaq
Nan A woea f~A TrW
Relmle Nqn and l.me Cmpm5al98 Naa I.me Rnme
' IlooQS P.L,bk olrgaum ,w ,a,1o enask o Ro.a row
onacaaom Pnaae
at Oa9b5r 1, 1996 51,092,101 f 1,016,2% S 31s,317 f 208,301 f 1.016,707 f 1s,65a fn,21S,22/ f25,93z,J01
Na D165 0 0 0 0 0 0 0 0
' (Prinbpll t{dl(~) (98,626) (17],n7) (149,3%) IS,Sn (17,77]) (1],574) 0 (513,276)
I%uwn A,eafaM 0 0 0 0 0 0 71,108 SI,20a
06aea[bm Palabk
at Sepm6v J0,
t997 9%,na eo9,o6a 16s,9a zv,az7 Lolo.97/ Ia,)zo n.z/6,a: zs./6a.n1
Lbmo101/8
DiSCwm 0 0 0 0 0 0 388,366 386,366
T9n1 I,wg-Tam
ODabatlonl S 991,778 f 609,066 f 163,%I f 223,623 f 1,010,934 f 18,120 fn,d)3,000 516,056,8/2
1
22
Note 6 -
NOTES TO FINANCIAL SPATEMENTS
C[TY OF ATLANTIC BEACH, FLORIDA
(Continued)
Long-Term Obligations (COnbnued)
Bonds and Notes Payable and Lease Obligations
Bonds and notes payable and lease obligations aze comprised of the following:
Utilities System Revenue Bonds, Series 1996
1996 Utility System Revenue Bonds, Payable in Annual
Installments of Principal and Semiamual Installments
of Interest Through October 1, 2025, Bearing Coupon
Rates of 3.90% to 5.50%, Secured Solety by a Pledge
of and Lien on Net System Revenues and Certain Other
Revenues as Defined in the Bond Ordinances.
Sun7Yust Revenue Bond
1996 Capital Improvement Bonds, Payable in Quarterly
Installments of Principal and Interest Though
January 1, 2006, Bearing Coupon Rates of 4.40% to
S.SS%.
Notes Payable end !.ease Obligalions
City of Gulf Breeze, Florida Local Government Loan Pool
Program, Government Unit Note, Payable in Annual
Installments of Principal and Semiannual Installments
of Interest at a FloaCmg Rate Increasing From 7.40%
to 7.70% Over the Term of the Nme. ToW Payments are
Approximately S19S,000 Annually. The Note is Secured By
the City's Utility Service Tases.
Capital Ixzse, Barnett Bank, Payable in Monthly Installments
of S8,9761ncluding Interest at 4.89%. The Ixase Obligation
is Secured By Equipment Costing 5300,1700.
Lease Purchase, SunTrust, Payable in Monthly Installments of
S4,S36 Including Interest at 5.60% Through May 1998. The
lxase Obligation is Secured By Equipment Costing
Approximately SIS0,000.
Lease Purchase, IBM Corporation, Payable in Monthly
Installments of S1,S63 Including Interest at 4.375% Through
October 1998. The Ixase Obligation is Secured By Computer
Equipment Costing SS2,646.
Total Bonds and Notes Payable and Lease Obligations
23
S 22,246,432
993,778
1,820,000
130,357
35,564
18,320
S 25,244,45]
i
1
1
NOTES TO FINANCIAL STATEMENTS
CITY OF ATLANTiC BEACH, FLORIDA
(Continued)
' Note b - Long-Tenn Obligations (Continued)
Bands and Notes Payable and Lease Obllgalions (Concluded)
' The annual requirements to amortize all debts outstanding (excludin g accrued compe2ated
absences) at September 30, 1997, are as follows:
General Long-Term 060gatfo~
Actoum Group Proprietary Fund Types
9/30 Principal Interest Total Priori Interest Total
1996 E 266,307 E 111,358 S 377,665 E 66,870 f 1.284.805 S 1.333.675
1999 159,656 101,265 260,921 428.327 7.273,566 7,701,893
2000 139,496 94,763 234,279 446.105 1.254,976 1.701,081
2001 146.638 87,563 234,181 463.882 1,734,646 1,696,528
2002 158.378 79.627 274,005 486.659 1.212,638 1.699,297
' Thereaaer 1,102,290 394,582 1.496,872 21.990.411 17.169,760 39,160,171
Tohl E 1,968,765 E 869,158 S 2,837,923 S 73,864.254 E 23,430,391 567,294,645
' Utilities System Revenue Bonds, Series 1996
On November 13, 1995, the City adopted Ordinance No. IS-95-7, which was supplemented
on March 11, 1996, by Ordinance No. 15-96-8 (collectively, the 'Bond Ordinance'),
authorizing the issuance of the City's Utilities System Revenue Bonds, Series 1996 (the "1996
Bonds'), in a principal amount not to exexd 524,500,000. The prxeeds of the bond issue
are to be used solely to (i) pay costs of certain water, sewer and stormwater capital projects;
(ii) refinance certain existing debt of the City (the Barnett note): (iii) fund the necessary debt
service reserves; (iv) pay the premium for policies of bond insurance and debt service reserve
fund policy insurance; (v) allow for underwriter's and original issue discount upon sale of the
Bonds; and (vi) pay costs of issuance.
The 1996 Bonds were dated March 1, 1996, and issued in the par amount of 522,835,000 on
March 26, 1996. Interest is payable semiannually each October I and April 1, with principal
payable annually each October 1. The issue consists of (a) 56,745,000 Serial Bonds maturing
in amounts of 5395,000 to 5680,0(10 each October 1, from October t, 1998 through
' Ocober 1, 2010, at coupon rates varying from 3.90 to 5.40%; and (b) 516,090,000 of
5.50% term bond due on October 1, 2016 and October 1, 2025, but subjtxt to mandatory
redemption from October 1, 2011 on, at no premium. In addition, there are provisions for
' optional eazly redemption at a premium of up to 2%.
The 1996 Bonds are limited special obligations of the City, the principal of and interest on
which are payable from and secured solely by a pledge of and lien on the net revenues of the
' combined water, sewer, and stormwater system, az defined in the Bond Ordinance.
Terms of the Bond Ordinance required the payment of bold insurance and debt service
' reserve fund policy insurance, as well as the establishment of vazious funds and accounu on
the books of the City, including the project fund, revenue fund, sinking fund, bond
amortization account, renewal and replacement fund, aid rate stab0ization fund, among
others. All required funds and aceounts have been established and appropriately funded as
' of September 30, 1997.
24
NOTES TO FINANCIAL STATEMENTS
CITY OF ATLANTIC BEACH, FLORIDA
(Continued)
Note 6 - Long-Term Obligations (Canrfuded)
Interest
lnterest paid or intuited during the year ended September 30, 1997, was 5130,672 in the debt
service fund, E1,357,876 in the enterprise funds, and E1,220 in the internal service fund.
Of the amount incurred in the encerprix fund, 5632,705 was capitalized. In addition, interest
earnings of 5574,793 waz capitalized.
Note 7 - Employee Benefits
The City has three separate defined benefit singleemployer pensionplans (general employees,
police and fire fighters) which cover substantially all of its employees. The City accounts
for the plans az pension trust funds.
General Employees' Pension Plan
All City employees, except for pobce, fire fighters and part-time employees, are covered
under the general employees' pension plan. Membership is comprised of [be following at
September 30, 1996 (the date of the latest arnrazial valuation):
Retirees and Beneficiaries Currently Receiving Benefits 19
Vested Terminated Employees 5
Active Employees 70
Total 94
Employees attaining the age of 60 and completing five or more years of xrvice aze entitled
to a monhly benefit of 2.65% of their average monthly earnings az defined in the plan for
each yeaz of confiwous xrvice. Active employees with five or more continuous years of
xrvice who become disabled receive brnefits wmputed the same az regular retirement
benefits. If an alive employee dies, his designated beneficiary receives payments computed
the same az regular retirement benefits.
If a member's employment is terminated before he/she becomes eligible for any other benefits
under this plan, he/she shall receive a refund of his/her member conVibufions.
If a member terminates his/her employment either voluntarily or by lawful dixhazge aker the
completion of ar least five years of xrvice, but before becoming eligible for retirement under
this plan, be/she shall be rnti0ed to a deferted vested benefit beginning at age 60. The
deferred vested benefit shall be based on monthly earnings and continuous xrvice az of the
termination date.
The general employees' pension plan waz established pursuant to City Ordinance adopted in
1975 by the City Commission. The plan is also governed by certain provisions of Chapter
112, Florida Stazutes. The plan fi administered by the Hoard of Tmstees.
25
' NOTES TO FINANCIAL STATEMENTS
CITY OF ATLANTIC BEACH, FLORIDA
(Continued)
Note 7 - Employee Benefits (Continued)
' Police and Fire Fighters' Retirement System
Membership in the police and fire fighters' retirement system is comprised of the following
at September 30, 1996:
Fire
Police Fighters Total
Retirees and Beneficiaries Currently Receiving Benefits 6 6 12
Vested Terminated Employees 2 3 5
Active Employees 20 11 31
Total 28 20 48
' Employees attaining the age of 60 and wmpleting five or more years of service, or age 50,
with 20 or more years of service or any age with 25 or more years, aze entitled to a monthly
benefit at 39'0 of their average monthly earnings as defined in the plan for each year of
continuous service. Attive employees with five or more years of service who become
disabled receive benefits computed the same as regular retirement benefits. The service
requirement is waived and the minimum benefit is 4296 of final average salary for police and
fire fighters if disability is incurted in the line of duty. If an active employee dies, his/her
designated beneficiary receives payments computed the same as regular retirement benefits.
' If a member's employment is terminated before be/she becomes eligible for any other
benefits under this plan, belshe shall receive a refund of his/her member contributions.
' If a member terminates his/her employment either voluntarily or by lawful discharge after
the completion of at least five years of service, but before becoming eligible for retirement
under this plan, he/she shall be emided to a deferted vested benefit beginning at age 60.
' The deferred vested benefit shall be based on monthly earnings and continuous service as
of the termination date.
' The police and fire fighters' pension plan was established pursuant to City Ordinance
adopted in 1975 by the Ciry Commission. The plan is also governed by certain provisions
of Chapters 175 and 185, Florida Statutes. The plan E administered by the Board of
' Trustees.
Summary of Significant Accounting Policies and Plan Asset Matters
' Investments and Investment Income
investments for the plans are initially recorded on the wade date. Imestmen[s are valued
' at fair market value. Market values of investments are valued at the last reported sales price
on the last business day of the year from published sources. Investment policies are
determined by the Board of Trustees and are implemented by investment advisors. Earnings
' on investments represent realized gains and losses, attd the effects of adjusting the investment
portfolio to (air market value at fiscal year end.
26
Note 7
NOTES TO FINANCIAL STATEMENTS
CITY OF ATLANTIC BEACH, FLORIDA
(Conrfnued)
Employee Benefits (Continued)
Summary of Significant At:counting Pollcfei and Plan Asset Matters (Conttirucd)
Investments and Investment Income (Concluded)
Investments as of September 30, 1997, are as follows:
Fair Market
Cost Value
SunTrust High-Grade Equity Fund 951,268 2,119,783
SunTrust High-Grade Bond Fund 2,539,603 3,761,549
SunTrust High-Grade Equity Income Fund 1,171,143 2,102,970
Short-Tenn Treasury Portfolio 222 222
Total E 4,661,236 S 7,984,524
Related Party Trensactions
There are no related parry vansactions recorded for any of the plans.
Funding Status and Progress
The amount shown below as the 'pension benefit obligation' is a standardized disclosure
measure of the preseot value of pension benefits, adjusted for the effects of projected salary
increases, estimated to be payable in the future as a result of employce service to date. This
measure is the actuazially-0etermirted present value using the credited projected benefits
method and is intended to (I) help users assess the plan's funding status on a going concern
basis; (2) assess progress being made in accumulating sufficient assets to pay benefits when
due; and (3) allow for comparisons among public employce retirement plans. The measure
is independent of the actuarial funding method used to determitte convibutions to the plan.
The pension benefit obligation was determined as part of an actuarial valuarion of the plan
as of September 30, 1996. Significant aetuarial assumptions used in determining the pension
benefit obligation include (a) a rate of remm on the investment of present and future assets
of 8~ per year compounded annually; (b) projected salary increases of 5.5% per year
compounded annually, attributable to inflation and other causes; (c) additional projected
salary increases ranging from 6.3~ to 0.0% per year, depending on age, atvibutable to
productivity, seniorttylmerit; and (d) the assumption that benefits will nm increase after
retirement.
1
1
1
At September 30, 1996, the pension benefit obligation excceded the net assets by S669,922,
determined as follows: '
General Police Fire
Pension Berretil Oblittetlon '
Redrew and Bercficuries Curtemly
Receiving Bercfits S 1,421,947 E 1,233,074 E 515,754
Terminated Employees Not Yet '
Receiving Bercfits 180,385 40,217 30,414
27 '
1
Note 7 -
1
e
1
NOTES TO FINANCIAL STATEMENTS
CITY OF ATLANTIC BEACH, FLORIDA
(Continued)
Employee Benefits (Cartdnued)
Summary of Significant Atx+ount(ng Policies and Plan Asset Matters (Continued)
Funding Status end Progress (Concluded)
Pemion Benefit Obligation (Concluded)
Cumm Employees:
Au.,®ulated Employee Coouibutioas,
Ircludiag Allocated Iwaunent
locome
Employer-Fnaoced -Vested
Employer-Fioarccd - Nonvesuxt
Total Pension Benefit Obligation
Net Assets Available For Bevel-ds (Al
Markel)
Assets (Under) in Ezcess of the
Pion Benda Obligatiou
General Police Fire
E 131,501 E 122,438 E 29,776
1,658,735 1,522,699 124,512
129,024 2(,394 22,024
3,524,592 2,940,022 722,480
(3,1196,528) (2,402,416) (1,018,227)
E (428,063) E (537,606) E 295,747
During the year ended September 30, 1996, the plan experienced a net increase of
51,002,304 in the pension benefit obligation, of which 592,439 waz attribuuble to changes
in benefit provisions. There were no changes in actuarial assumptions.
Contributions Required and Contributions Nfade For All Plans
The City's funding policy provides for periodic employer contributions at actuazially-
determined rates that, expressed az percentages of annual covered payroll, are designed to
accumulate sufficient azsets to pay benefits when due. The normal cost and actuarial acemed
liability are determined using an entry age acmarial funding method. Unfunded acmarial
acemed liabilities are being amortized az a Icvel percent of payroll over periods of twelve
to thirty years. Member contributors for general employees are 2% of salary, police
4.815 % of salary (2.315 % for the police bargaining unit) and fire fighters 5.555 % of salary.
During the year ended September 30, 1996, wnvibutions totalling 5532,896 (5329,495
employer, 591,970 state, and 5111,431 employee) were made in accordance with
convibution requirements determined by an actuarial valuation of the plan as of
September 30, 1994. The employer (and state) wnvibutions consisted of 5322,872 for
normal costs and adminisvative expenses, and 598,593 for amortization of the unfunded
actuarial accmed liability. Employer convibutions represented 12.64% of active member
covered payroll.
Significant actuarial assumptions used to wmpute convibution requirements were the same
az those used to compute the standardized measure of the pension benefit obligation.
28
Note 7 -
Note S -
NOTES TO FINANCIAL STATEMENTS
CITY OF ATLANTIC BEACH, FLORIDA
(Con[intred)
Employee Benefits (Concluded)
Summary of Significant Accounting Policies and Plan Asset Matters (Concluded)
HLstorical Trend Information -All Plans
Almlysls of Funding Progress
Uufooded Unfooded
NN Atuta Peaaioo (Oyer-Funded) PBO ae a
Fiscal AvaOabk Benelh Pensba Amnal Percentage
Year Endfog For Obligalbn Percent Bmefd Corend o[ Covered
September 30, Beaelitb (PBO) Forded Obngatlon ParroB ParroO
1987 t 1.694.786 S 1,703,]36 99.5% S 8,450 S 1,454,7A3 .6%
1988 3 1,888,635 S (.917,709 98.5% 3 29,074 S 1.716,170 1.7%
3989 S 2,293,223 3 2,199,374 104.3% 3 (93,849)5 1,909,994 -
1990 3 2.466,544 S 2,565,465 96.2% 3 98,921 S 2,295,583 4.3%
1991 S 3.070,254 3 2,821,663 108.8% S (248,591)3 2,491:992 -
1992 S 3.646.919 S 3,218,767 113.3% S (428,356)5 2.755,004 -
1993 5 4,31(,115 S 4,444,056 97.0% 3 132,945 S 2,964,866 4.5%
1944 S 4,548,831 5 5,261,983 86.4% S 7/3,/52 5 3,067,702 23.2%
1995 S 5,516,070 3 6,184,790 89.7% S 638,720 S 3,053,964 20.9%
1996 3 6,517,172 S 7,187,094 90.7% S 669,922 S ?.1136,770 21.6%
Computed ComribuBon Comparati ve Sthedde
ConWbaaon Rates o
Fiscal Perceot o[ Dollar Cantribntlon
Year Fadmg Valoalbo Date Valvathe ParroO Valuatba Par Fiftal Year
September 30, September 30, Geaenl Ponce Ftre Paproll Computed Actnsl
1989 1931 9.h9% 10.32% 10.49% f 1,/54,243 f 158,31/ f 167,785
1990 1964 9.1D% IL53% 9.36% f 1.716,1]0 f 381,6bJ S 166,050
1991 19b9 9.27% 11.76% ].16% f 1,909,991 S 202,961 i 109,59D
[992 1990 9.85% 12.77% 6.85% M,295,583 f 264,733 f 266,52D
1993 1991 9.27% 11.15% 6.46% 52.491,992 f 255,186 S 266,271
1991 1992 9.02A 10.16% 6.48% f T,753,001 f 2]1.518 f 2]4,692
1995 1943 9.37% (1,315% 10.66Ja 52,961,866 S 326.244 S 327,581
1996 1991 10.65% 14,915% 13.675A f 3,067.702 f 120,591 S 421,165
1991 1993 11.12% 11.535% 15.255% f3,053,961 S 419,766 S 09,6]1
1996 1996 11.99% 18.893% 3.405% 53,106,770 f 111.912
Ten-year histories! Vend information, designed to provide information about the City's
progress made in accumulating sufficient assets to pay benefits when due, is reproduced in
fhe additional information section of this report.
Deferred Compensatlon Plan
The City offers its employees a deferred compensation plan created in accordance wi.h
Internal Revenue Code Section 457. The plan, available to all City employees, permits them
to defer a portion of their salary until future years. The deferred compensation is not
available to employees until termination, retirement, death, or unforeseeable emergencies.
29
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NOTES 7b FINANCIAL STATEMENTS
CITY OF ATLANTIC BEACH, FLORIDA
(Continued)
Note 8 - Deferred Compensation Plan (Cone(uded)
All amounts of compensation deferred under the plan, all property and rights purchased with
those amounts, aM all income attributable to those amounts, property, or rights are (umil
paid or made available to the employee or other beneficiary) solely the property and rights
of tht City (without being restricted to [he provisions of the benefits under the plan), subject
only to the claims of the City's general creditors. Participants' rights under the plan aze
equal to those of general creditors of the City in an aznount equal to the fair market value of
the deferred account for each participant.
It is the opinion of the City's legal counsel that the City has no liability for losses under the
plan but does have the duty of due care tbaz would be required of any ordinary prudent
investor. The City believes that it is unlikely that it will uu the assets to satisfy the claims
of general creditors in the future.
Note 9 - Interfund Transagions Remncilfalion
A summary of interfund traasfers during [bc fiscal year ended September 30, 1997, is as
follows:
Transfers Out Amount Fund Receiving Transfer
Gerreral Fund
General Fund S 307,917 Debt Service
General Fund 180,379 Capital Projects -Other Projects
General Fund 18,766 Pension Trust
General Fund 4,985 Special Revenue -Police Grants
Total General Fund SI2,047
Special Revenue Funds
Local Option Gas Tu 208,985 Debt Service
Enlerprtse Funds
Utility Fund 400,000 General
Sanitation 200,000 General
Total Enterprise Funds 600,000
Expendable Trust 7,200 General
Total E 1,328,232
30
NOTES TO FINANCIAL STATEMF.N7S
CITY OF ATLANTIC BEACN, FLORIDA
(Continued)
Note 9 - Interfund Transadions Reoondliation (Concluded)
A summary of interfund receivable/payables due from/to the general fund at September 30,
1997, is as follows:
Due To
Capita Projects Funds f 40,108
Due From
Special Revenue Funds:
Miscellatxau Grants f 44,150
Police Grants 10,376
Internal Service Funds 14,905
Tolal 69,431
Note 10 - Segment Information Por Enterprise Funds
The Ciry has established a utility enterprise fund to account for water, sewer, and stormwater
services, along with bond wnstmexion expenditures and capitalized imerest from bond
proceeds. In addition, the City maintains a separate enterprise fund to account for sanitation
services. Segment information for the City's enterprise funds for the year ended
September 30, 1997, is as follows:
Operann8 Rtvewa
Depreciation
OMra648 Income
Nomperzting lrrome (Expense)
Net Operating Transfers (OOQ
Na Income
Nn Property, Plan and
~Ptnenr
Special Asu.;smrnt Reccivable:
Long-Team
Nn Wmldng Capital
Property, PWnt and Equipment
Additions
Long-Tam Debt
Tool Equity
Taal Assets
Total
LkllNy 5anhation Enterprise
Fwd Fund Funds
5,125,176 f 1,047,687 6,]72,863
1,076,300 16,046 1,092,346
1,090,992 170,113 1,261,105
149,827 19,781 169,608
(400.000) (200,000) (600.000)
840,819 (1Q106) 830,713
21,7A9,474 28,398 2],267,872
609,747 0 609.747
4,701,773 327,714 5,029,487
2,870,059 0 2,870,059
23,226,816 0 23,226,816
]9,779,876 346,112 20,125,988
44,214,163 478,525 44,692.688
31
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Each city has recorded its share of the project in its own financial statements. The Ciry
recorded its portion of the joint venture (approximarely $290,000) in the property accounts
of the City's sewer fund. The City also recorded approximately 5325,000 of additional
property purchased wiUl grant proceeds from the Florida Department of Environmental
Protection since the grant for the outfall lioes was awarded to the City. Therefore, the total
cost of the joim veruure on the City's books is approximately $615,000. The project was
completed in 1986 and depreciation (using the straight-line method over 25 years) began in
1987.
The City provides all atxoundng and purchasing services for the joint venture. Repair and
maintenance of the outfall lines and disposal of the facilities will be shared by the
participating municipalities in the percentages noted above. No repair and maintenance
' ezpen5es related to the joint venture were incurred during 1997.
Note 12 - Commitments
' i
i N
tments on wntracts
progress
ng comm
As of Septsmber 30, 1997, the City had outstand
az follows:
elfleYaea
COOtIiCt ThfOY$tl
lkojecUCOYtnetor Amomt 9/30M
Wafer MaiY Upgrades:
eYStam-7bimes s ls6.na s
las.7a4
lohY Woody, IYC. 393,050 162.961
Sewer Rel;ab:
HnglaW-T1wYU 147,289 116,857
' Stomrws¢r Mayer Phn:
englam-ib®ea 469,557 435,573
Buccaneer WsHewater ImprwerYCd:
PAcr and Maciaw 115,270 711,275
' Beach Avenue:
CaVOway 885.858 752,140
' 32
NOTES TO FINANCIAL STATEMENTS
CITY OF ATLANTIC BEACH, FLORIDA
(Continned)
Note 11 - Joint Venture
In 1985, pursuant to an interlocal agreemrnt authorized by Section 163.OI, Florida Statutes,
the City joined with the City of lacksomille Beach, Florida, and the City of Neptune Beach.
Florida, to construe and operate effluent outfall lines and disposal facilities, together with
all the lands, right-0f-ways, easements, and other entitlements necessary for the wnstrumion
arld use thereof.
The construction of the outfall lines and disposal facilities were funded by the municipalities
in the following proportions:
Atlantic Beach 33.06%
Jacksonville Beach 55.78%
Neptune Beach I t.I6%
Tool 100.00%
1
NOTES TO FINANCIAL STATRMENIS ,
CITY OF ATLANTIC BEACH, FLORIDA
(Concfudedl
Note 13 - Contingencies
The City u a defendant to several lawsuits wldch azose in the ordinary course of the City's
business. It is the City's position that the probability is unlikely that material amounts will
ever be payable as a result of these proceedings.
Note 14 - RLsk Management ,
The City is exposed to various risks of loss related m torts; theft of, damage to and
destmction of assets; errors and omissions; and nanual disasters for which the City carries ,
covunercial insurance. Itnurance against losses are provided through the Florida League of
Cifies, Inc. and Risk Managemem Associates, Inc. for the following types of risk:
^ Workers' Compensation aW Employer's Liability
^ Automobile Liability
^ Automobile Physical Damage
^ Accidental Death and Dismembermem '
^ General Liability
• Public Officials Liability
^ Property Coverage '
The Ciry's coverage for workers' compensation is under a retrospectively rated policy.
Premiums are accmed based on the ultimate cost to dots of the City's experience for this '
type of risk.
33 '
1
' COMBINING AND INDIVIDUAL FUND STATEMENTS
AND SCHEDULE
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Combining financial staretnems provide a more detailed view of the'general-purpose financial statements
presented in the preceding subsection.
Individual statements and schedules, although not necessary for a fair presentation in conformity with
generally accepted accounting principles, are presented to provide greater detail and comparative financial
information for certain fund types.
1
GENERAL FUND
The general fund is the general operating fund of the City. IL is used to account for all financial
resources, except those required to ix accounted for in another fund.
1
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SCHEDULE OF EXPENDITURES
BUDGET AND ACTUAL
GENERAL FU ND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997,
' WITH COMPARATR'E TOTALS FOR SEPTEMBER 30, 1996
CITY OF ATLANTIC BEACH, FLORIDA
1997 1996
Variance
Favorable
' Badgef AUtmi Nnfavorable) Attual
Expeoditurts
Geutual GovernmenLL:
Legislative
Personal Services S 16,343 S 16,270 S 75 S ]6,800
Operating Expeaxs 14,278 9,247 5,031 3,498
Total I.egislalive 30,623 25,517 5,106 20,298
Legal Cotmsd
I Personal Services 5,500 5,471 29 4,977
Operating Expenses 91,300 98,411 (6,911) 65,493
Total Legal Counsel 97.000 103,882 (6,882) 70,470
'
Planning and Zodug
Personal Scrvices 72,290 72,062 228 68,629
' Operating Expenses 10,893 10,378 315 12,475
Capital Outlay 0 0 0 1,540
Total Planniog and Zuning 83,183 82,640 543 82,644
' Cade Enforcenrent
Personal Services 47,000 44,493 2,507 46,110
Operating Expenses 23,644 17,257 6,387 17,031
Capital OuOay 4,020 3,605 415 13,815
Total Cade En[orcenml 74,664 65,355 9,309 76,956
CNy Clerk
' Personal Smites 90,508 89,733 775 84,566
Opern6ng Expeuscs 47,210 36,018 11,142 38,254
Capital Outlay 2,710 2,114 596 20,074
' Total City Clerk 140,426 127,865 12,563 142,894
Other General Covemotent
' Personal Scrvices 6,759 6,677 82 33
Opendng Expenses 194,117 169,338 24,779 120,371
Capital OuOay 6,428 3,91A 2,504 2,063
Graots and Aids 500 500 0 0
' Total Other Gctval Govertunerd 207,804 180,439 27,365 122,467
Total General Government 633,702 385,698 46,004 515,729
'
14
SCHEDULE OF EXPENDITURES
BUDGET AND ACTUAL
GENERAL FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997,
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1996
CITY OF ATLANTIC BEACH, FLORH)A
(Concluded)
1997 1996
Variance
Favorebie
Budget AUUaI (Unfavorable) Actual
Expenditures (Concluded)
PubBc SafHy:
Law Enforcanaa
Personal Services f 4596,214 f 1,425,169 f 171,045 S 4507,529
Opertlug Expenses 311,795 277,449 34,346 244,173
GpiW Outlay 42,316 26,124 16,192 138,935
Total law Enformnent 1,950,325 1,728,742 221,583 1,890,637
Fire CoNrol
Persoual Services 780,235 797,665 (17,430) 781,117
Operating Expenses 254,935 223,715 31,220 220,663
GpiW Outlay 89,836 74,918 14,918 9,573
Total fire CoWrol 1,125,006 (,096,298 28,708 1,011,353
Protective Impeclious
Personal Scrvices 76,663 74,160 2,503 72,373
Operating Expenses 35,967 35,769 198 29,453
Capial Outlay 0 0 0 13,815
Total PMeclive Gnpecliora 112,630 109.929 2,701 115,641
Total Public Safety 3,187,961 2,934,969 252,992 3,017,631
Tramportation
Persona! Services 316,3$3 311,176 5,207 288,698
Operating Expeasa 356,733 307,058 51,675 318,490
Gpiul Outlay 40,453 34,716 5,737 41,761
Total Traruportation 715,569 652,950 62,619 648,949
Culttue/Retreation:
Parks and Reveatiorn
Personal Scrvius 154,081 148,141 5,940 152,984
Opertiog Expenus 167,039 147,665 19,374 123,530
Capital Outlay 17,591 17,589 2 61,566
Total Culture/Reaeation 338,711 313,395 25,316 338,080
Total Expendlt~ f 4,875,943 i 4,487,012 S 388,931 f 4,520,389
35
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Special revenue funds are used to account for the proceeds of specific revenue sources (oNer than special
assessments or major capi[z projects) that are legally restricted to expenditures for specified purposes.
1
COMBINING BALANCE SHEET
SPECIAL REVENUE FUNDS
SEPTEMBER 30, 1997,
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1996
CITY OF ATLANTIC BEACH, FLORIDA
Paving and
Lonl OpBon MtueOaneom CoormOan Dnlmge Impact
Gss Tax Gnats Derebpmmt Tax Pre Seetbo H PoBU Greets Tohls
1997 1996 1997 1996 1997 19% 1997 1996 1997199 -- 1997 1996
Avels
Cssb and levestmeda 5 546.975 S 714,822 S O f 0 5 94.626 S 67,149 S O S O S O S O S 641,601 S 311,971
Due Prom Odxr Goveromcea 39,838 73,993 64,175 141,74) 4.657 0 0 0 13,53( 10,769 102.201 226,505
Total Assets 588,817 318,815 46,175 161,747 99,287 67,149 0 0 13,53( 10,769 745,802 538,676
LIabORfea and Fund Balances
LiatidRiss
Accwes Payable 0 0 25 60,460 0 0 0 0 3.155 282 1,180 60,742
Due to OtMr Pulls 0 0 04,150 78,784 0 0 0 0 10,376 10,487 54,526 69,271
Deferred Revewe 0 0 0 2,499 0 0 0 0 0 0 0 2,499
Trial LIab011ks 0 0 44,175 141.743 0 0 0 0 13,531 10,769 57,706 152.512
Fund Ba6o<es
Reurved Por Deb Service 40.929 227,650 0 0 0 0 0 0 0 0 40.929 223,650
Rexrvcd Por Roads all SOeer Pxpendimrea 547,884 95,165 0 0 0 0 0 0 0 0 597,884 95,145
Rexrved Por Twrism Developmem 0 0 0 0 99,28) 67,119 0 0 0 0 99,283 67,149
Total Fuod Balancn 588,813 118,615 0 0 99,287 fi7,149 0 0 0 0 688,096 785,964
Trial Liabilities and Food Ba6nro S 588,813 S 318,815 5 49.175 S 141,747 S 99,287 5 67,749 S O S 0 5 13,531 S 10.769 f 745,802 f 538,476
36
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCES
SPECIAL REVENUE FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997,
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1996
CITY OF ATLANTIC BEACH, FLORIDA
ParNg and
Lain Optba 81Lxe0aneoaa Coarmtba Draloage ImpaU
Gas Tax Graab Derebpmeot Tax Pee SeUba R Potlee GnaU Tolatt
1 t 1997 19% 1997 1996 1997 1 1 1996 1997 1996
Rermaa
Taxes S 456.376 5 622,141 f O f O S 52,444 S 43,903 f O S O S O S O S 510,782 f 466,095
Inu:rgwernmeaul Revearc:
Pedenl Cnau 0 0 57,369 132,769 0 0 0 0 14,956 37,239 72,325 170,028
Irte:eu Ircome 20,695 11,4b6 0 0 4,690 3,922 0 0 0 0 25,335 15,388
Tdai Rermaa 478,983 433,658 57,369 132.789 57,IN 47,825 0 0 14,956 37,239 606,442 651,511
Eapeodkurn
Gcrcni Gwemmear 0 0 57,369 139,462 25,000 0 0 0 0 0 82,369 139,462
Publk SafUy 0 0 0 0 0 0 0 0 19,941 52,246 19,941 52,246
(Trial Expeadgara) 0 0 (57,369) (139,962) (15,000) 0 0 0 (19,941) (52,24b) (102,310) (191,708)
Excea Nefkkac7) of Rereoaa Ora
Nader) Expeadkara 478.983 433.656 0 (6,671) 32,134 47,825 0 0 (4,985) (15,007) 506,132 459,803
01her Pbuodag Soorea Nan)
Openling Tnm(en Io 0 0 0 6,b77 0 0 0 0 4,965 16,082 4,965 22,755
Openting Tnmfen Out (206.965) (737.554) 0 0 0 (74,600) 0 (65,216) 0 (1.075) (208,985) (478,445)
Trial OIAer FWaadag Soorta Nsa) (208.985) (337,554) 0 6,677 0 04,600) 0 (65,216) 4,485 15,007 (204,000) (455,690)
Eaten Nelkkocy) of Rermaa nerd gLer
Fimactag Sparta Urn Nader) Eapeod'dura
and Other FNaociag Una 2b9,998 96,104 0 0 32,139 (7b,775) 0 (65,216) 0 0 302,132 4,113
Faad tlalaoca - Beglaalag of Yar 718,815 222,711 0 0 67,149 93,924 0 65,216 0 0 365,964 381,851
Paad tlalaom • Eod of Ynr S 588,813 S 718,815 S O S O S 99.283 S 67,149 S O S O f O S O S 666,096 S 385,969
37
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CAPITAL PROJECTS FUNDS
Capital projects funds aze used to account for financial resources to be used for the acquisition or
construction of major capital facilities (other than those financed by proprietary fund types).
1
~ ~ ~ ~ ~ ! ~ ~ r !M ~ r ~ ~ i ~ ~ ~ ~
COMBINING BALANCE SHEET
CAPITAL PROJECTS FUNDS
SEPTEMBER 30, 1997,
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1996
CITY OF ATLANTIC BEACH, FLORIDA
Assets
Cash aM Cash Equivalents
Due From gher Funds
Trial Assets
LiabiliBes and Fund Balances
Liabilties
Contracts Payable
Fund Balances
Reserved Por Police
Reserved For Roads and Streets
Reserved For Tourism Development
Reserved For Land Conservafian
Unreserved
Total Fund Balarces
Section H Other Projects Totals
1997 1996 1997 1996 1997 1996
f 23,406 f 23,406 f 490,356 f 291,142 f 513,762 f 314,548
0 0 40,108 0 40,108 0
23,406 23.406 530,464 291,142 553,870 3:4,548
0 0 7,583 64,020 7,583 64,020
0 0 21,484 65,491 21,484 65,491
23,406 23,406 10,291 12,697 33,697 36,103
0 0 2,000 28,616 2,000 28,616
0 0 200.000 0 200.000 0
0 0 289,106 120,3(8 289,(06 120,318
23,406 23,406 522,881 227,122 546,287 250,528
Total Liabilities and Fund Balances f 23,406 f 23,406 S 530,464 f 291,142 f 533,670 S 314,548
38
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997,
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1996
CITY OF ATLANTIC BEACH, FLORIDA
Revenues
Odxr Intergovert®eo1a1 Revemres
Interest Ircome
Trial Revenues
Expenditures
Capital OuOay
Excess (De7idency) of Revenue Orer
Nnder) Expenditures
Other Fieunting Sources Nse)
Operating Transfers Io
Operating Trnsfers Out
Total Other Financing Sources Nse)
Excess of Revenues and Other Flnancing
Sources Over Expenditure and Other
Finandng Uses
FunJ Balances, Beginning of Year
Fund Balance, End of Year
Secllon H Other Protects Totals
1997 1996 1997 1996 1997 1996
f O f O f 289,105 f 30,000 f 289,105 f 30,000
0 0 21,335 31,281 21,335 31,281
0 0 310,440 61,261 310,440 61,281
0 0 (195,060) (690,695) (195,060) (690,695)
0 0 115,380 (629,414) 115,380 (629,414)
0 0 180,379 607,865 180,379 607,865
0 0 0 78,100 0 78,100
0 0 180,374 685,965 180,379 685,965
0 0 295,759 56,551 295,759 56,551
23,406 23,406 n7,ln 170,571 250,528 193,977
f 23,406 f 23,406 E 522,881 f 227,122 f 546.287 f 250,528
39
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ENTERPRISE FUNDS
' Enterprise (ands are used to account for operations that are financed and operated in a manntt similar
to private business enterprises, where the intent is that the costs (expenses, inctuding depreciation) of
providing goods or services to the general public, on a continuing bazis, be financed or recovered
primarily through user charges.
1
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w w w w w w w w a w~ w w w w w w w w w
COMBINING BALANCE SHEET
PROPRIETARY FUND TYPES -ENTERPRISE FUNDS
SEPTEMBER 30, 1997,
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1996
CITY OF ATLANTIC BEACH, FLORH)A Pace I of 3 Pages
Avtla
Gah aM h,h Pquivakou
Aomow Raeivabk
lnvmkria
Spavl Aaammmt Rlocivabk - Gnat
Nde Rmeivabk- Gamt
pha 111rtnt Auw
Reuiad Aaaer
Cub avx Gab Egaivakm
Coal W iW Fwl ABaY
Imael Raeiva6k
COOWIM1Cn 111 RO$m
Roperty, Pkot aM Fgoilnoeat - Ne
Spaial Aunmlel Rcocivabk -tune-Tam
Nou Rasivabk -lunCTam
Vumafvud loan foaa
TaW Aauls
WDi1Cb 806 PIa16 P.gOIy
IJabilitie
Curlml Liabili0a (Payabk FYm Grtem Aaw):
Aamnu Payabk aM Aom,ed liabililia
Gatana Dryoaiu
Delard Rcvauc
Glmx lubili(e (Payabk P[am Raukled AaeaQ:
Aocwnu Ryabk
Inkreu Ryabk
Nme Paya6k
Rr+aue RonN Payabk
Nate Payabk . Iaq-Tam Portion
T9W IJabllEiu
Pamd PquR7
Conuibokd GPiul
RNirnd Fiminy:
Remod fw Rercwal ad RWkameN
Raavax For Debt Soria
UmMYgI
ToW flmd PquN7
T9W ILhOYIa ad Plmd PgnkY
wre s731® &alv sYatm
5997 5996 1997 5996
1,561,656 f 1,130,006 f
IN,610 ISI,SR
36,100 51,012
II,764 10,839
0 0
21.192 21,192
2,623.4)1 f 2.205,069
370,4M 262,253
36,636 9,985
22,326 15,019
10,362 60,362.
292N 292N
1.321,566 1,020,658 1,827,526 1,028,591
603,790 0 0 0
0 0 0 0
230,615 129,029 607,736 271.859
5987.931 62N,017 14,713.996 15,366,826
245,623 2Tl,MS 361.121 119,563
0 0 98,N7 f0a,M13
111,633 111,89{ 295.891 301.935
10291.126 9,153,214 TI,000, N7 19,999,331
11,763 6x,651 73.913 91212
261251 33o,los o 0
13,561 16,121 0 0
0 0 0 0
601,]9D 0 0 0
12,866 11,713 1],661 Ib,OSd
12]5,761 /,169,766 0,901,]96 13,66229/
113,321 126,107 566.661 561,525
5,672,536 5,1]3,010 11 .161 11,5]1.069
1,76x,931 1,610,174 1,999,065 5,119,933
I.OOD,OW 1.000.000 1.000.000 I,OOD,000
306,640 9,113 609.661 12,533
1.516.931 I,I8D,327 (N9,066) (137.024)
1.611,546 1,030,IN 6,139,663 5,125,162
f 10,291,126 5 9.157,214 f 21,000,11] f 19,999,551
COMBINING BALANCE SHEET
PROPRIETARY FUND TYPES-ENTERPRISE FUNDS
SEPTEMBER 30, 1997,
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1996
CITY OF ATLANTIC BEACH, FLORIDA Pane 2 of 3 Pa;es
Aunts
r..l. ant Gah Egiivakou
AcmuNs Reeir_bk
Onrnbria
Spaial Aasem,cnl Reaeivabk - Gecml
Nde Reaivabk - CmeaA
OJer Grtenl Avila
RaviaW Aaaa:
Cash and Gab Fquivakaa
Cash WiN Fuel ASmI
k0aw Raeivabk
Comuuttion in Pcopea
Ropaty, PIaN ant B9aipnwx - Na
Spakl AsaaamvA Raeiva6k -luny-Tam
Nmc Rrsivable -Lora-Tam
Urunwrt¢W Lmn Cow
T91a1 Ands
I1abBilb mA Herod Pgvlry
I1abilNia
Cartenl L'ubilitiea (Wyabk Rom Grtenl AvW):
Aawnu Papbk a,d Amvd I~abili0a
Cusloma Deyosid
Defaced Faeroe
Curtrnt Lkbilitiea (PaYabk Ran Rewkmd AaWS):
Atta,nO Payable
(Naar Payabk
Nma Ryabk
Rcvrnuc Bach Payabk
Noire Payabk . Lora-Tam Fbrtkn
Toml Liablllia
P®d FgaRY
ConOibuud Gpiul
Ramrod FirNrry:
Racrvd Far Raavnl and RWkamaA
Famed Fur Debt Service
Unreurved
Trial Pu0d Fg9iry
T9W L1abBala ob Frnd RgnRy
skamnardc sYwm Bo0d crostrocam Amuml Band c.pilalucd Snlaal Aawd
1999 1996 199] 1996 1999 1996
264,521 f 205,131 t O S O s O f
u,zu 5,651 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 6,772,416 10,691,151 0 595.475
0 0 0 0 0 704,172
0 0 269,770 31],613 8,156 10,329
221,262 93,326 2.]N,006 723,061 0 0
5{7,527 594,756 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
n,556 79,9m o 0 0 0
1,122,412 962,104 11.]66,192 11.931,627 6,126 1,610.226
2,301 26,b/l
0 0
0 0
0 0 130,3119 276,7)9 0 0
0 0 0 0 0 ]04.42
0 0 0 0 0 0
1.066.672 4,063,164 0 0 0 0
0 0 0 0 0 0
4,071,176 1,090,007 130,309 916X19 0 ]M,422
0 0 0 0 0 0
0 0 0 0 0 0
8,915,764) 8.10].901) 11,655,661
- 11,655,515 61t6 935.501
R,w5.764) (3.10].901) 11.655.551 11.655.516 6.256 935,501
S 1,122,112 f 962.101 f 11.766.191 5 11,91L527 f 8,526 f 1.610.226
41
^~ ~ ~ ~ ~ ~ e ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ s
COMBINING BALANCE SHEET
PROPRIETARY FUND TYPES -ENTERPRISE FUNDS
SEPTEMBER 30, 1997,
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1996
CITY OF ATLANTIC BEACH, FLORIDA Pn6e 3 of 3 Pnges
Attels
Cuh ud Gah FgoMkeu
Attwna Rexiv+bk
Iwmlaria
Spain Av®eal Rcaiv+bk - Curtml
Nae A~iv+bk- CLrtrnl
Oi6a Nrcenl Aue1+
Rwiaed A+v4a:
CW +M C++b Fgoinkal+
G,h Wirb Fuel Agml
Nram Raciv+6k
Cmuuudmn in Progrea+
Property, Pknl+vd Egtiryouril - Nel
apzi+l Avauneol Roceiv+bk -brie-Tam
Norc Ac¢iv+bk -lag-Tam
Urwnort¢W I.wn CaU
T9b1 Asd1
IJabtBlia and Prmd P.gnB7
139bBCies
CLrtmr fi+biliria (P+Y+6k Fan Curcern A++m):
A®um+Ry+bk+nd AaxuW Ii+biliria
Cwmma Depo+iu
Defamd Revaoc
Cmrrnl I.i+bilitin (RY+bk Fran RuViaN Ava41:
Amwnu RY+bk
Inurm Pry+bk
Nda P+Y+bk
Rarnx Bohr Rpbk
Ne1a RY+bk - [ag-Term Portion
Taal I.bbililia
FSmd Pquil7
ConuibalA C+piul
Rained Firning+_
Reswed For Aerr+v+l c7d Repl+rmrml
Raervd Pm Drbl Smioe
Umamd
T9W Pond Pg0iry
Tq+l LIa60Blc d PM Pquiry
ToW UlBity lAod SmFatl0n Md TdJt
1999 7996 1997 1996 1997 1996
f 1,150,035 f 1,343,329 S 115,8M S 378,591 f 1.665,942 f 3,922,120
526,312 N2,506 N,240 52,761 570,552 !95,267
73.036 60.997 0 0 73,036 b0,991
34.09{ 2a.asa o 0 31,099 zb,6sa
10,362 10,362 0 0 10,362 10,362
SO,716 50.736 0 0 50.736 50,7J6
11,921,306 13,636,Q7s 0 0 11,921,506 13,636,O7s
607.N0 701,122 0 0 603.790 709.922
278.036 337,912 D 0 278,056 357,98
3,827,139 1,15],27/ 0 0 3,623,139 1,137,27/
21,219,171 22,209,631 18,398 3{.IN 11,7b7,8R 12,2N,015
b09,7{7 691,018 0 0 609,]!7 69/,ON
9b,N1 108.803 0 0 9b,N: 106,801
483,111 196,7)6 0 0 183,!13 198,736
N,211,163 13,]06,9x1 17b,525 165,416 N,692,66f N,171,73b
118.010 186.709 132,113 109.398 2W,123 296,707
261,251 3)0,105 0 0 2b1,231 130,103
13,361 16,121 0 0 11,561 16,121
110,109 276,719 0 0 130,309 276,279
607,790 704.122 0 0 603.790 701.122
30,550 I7,T13 0 0 30,550 27,773
22,7AbAl2 22.215,921 0 0 22,]A6,132 22,215,121
980,381 I.DID,931 0 0 980,3N ),010,931
21,131,74'1 2{.767.66] 132.113 109,398 21.566.700 21.871.165
6,766,012 6.990.127
6,766,017 6,990,/27
2,000,000 2,OOD,OOD 0 0 2,000,000 2,000,000
1.116,511 21.676 0 0 1,176,311 21,676
9,693,297 9,976.932 316,112 356,216 10,239,103 10,743.170
19,779,8/6 16,939.033 316,112 356,216 20,125,986 19.293.273
S N,211,76J f Q,iW,922 S nasss S 165,616 S N,691,668 f N,ffi,D8
42
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANCES IN RETAINED EARNINGS
PROPRIETARY FUND TYPES-ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 1997, WITH
COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1996
CITY OF ATLANTIC BEACH, FLORH)A Pa;e I of 3 Pa;es
water S7allm sewer 57A®
2m I ) I
OPm80^d Rneeam
Neomn C6a.gm 3 1,8]1,062 S 1,32],]]3 S 2,875,111 3 2,A5,7A3
phrlnaw~n JJ2,91S 277,311 I,7N 12,]62
Tad OprnGq Rneam 2,003,981 1,100,689 2,876,165 2,]88,001
Opnafq Rxpn«m
P<naul8ervion 371,]19 183,012 301,951 517,912
Caannua15m9m 58,908 65,116 62,067 111,885
Supplin 135,309 88,U8 110,072 119,813
Regin aM Maimc,um 112,991 11,962 117,161 112,66/
IIml, lSga an6 Powm 67,911 68,138 702,227 192,631
DcPaeciation 311,730 290,]90 ]13,720 619,116
pM Erprnm 381,817 361,981 118,]9] 7]9,]x5
(iad (IperatioB Erpeosm) (1,118,608) (1,109,08'0 [1.130,891] (2,161,811)
Opnaleg ]same 567,77) 191.602 N5,311 601,166
Nmoprn0ag Inromt 0=rpra<+e1
CoimcUionCbBm 86,]10 73,6]8 212,136 366,155
Seen Genenlion C6aeyn 0 0 127,758 126,1]8
LvneYlrcarc 111,362 120,868 210,2]0 190,106
(Genes Erpcme) (190.199) (17A,028) (121,819) (151,T36)
(AmoAvation of loan COW) (1,22% Q,052) (11,16% (5,12'!)
Taal Naaperueag bcoae ~rpeesel 75,787 ~ 115,202 322,736
Nm bw.e adore Trvden 602,]56 s61,m/ s9o.nl 916,9oz
fJtbr Pbaatied Sonrcm Nam)
Opcning Tnntfmb 191,687 0 623,61] 0
(0wnem Tnmfm (8l (100,00% (lOD,00% (1DD,00% (130.00%
GpiUl Tnafua b 0 110,216 0 1,610,756
Gpiul Tnmfen (bl 0 Q,867,iJ5) 0 (1,561,5167
ToW pLa PfoaecioddWrem Nam) (d,lll) Q,936,9891 121,61] (6,170,79y
Na lame Noss) 591,M3 (1,792,939) 1,011,11A (5,217,8901
Deprecia0m oe PbW Aveb AcgaGel E3
SharM Rneonea RnmeNT RmtMed
Por Capita Acgollfioaa ll s21 71,521 130,866 150,866
Ixreaae (Detmw)b ReWal P,ar®p 665,961 (1,721A38) 1,165,286 (5,09J,02y
Reabel P,enbp (adw4), Bedbdod of Ym 2,189,670 1,311.108 2]3,509 S}68,513
Relabel P,ardep (DdIdO, Pwl dYear 2,853,6N 2,189,690
43
~ ~ r w~ a ~ s ~ r ~ ~r ~ ~ ~ r ~ ~ ~ a
~ ~ ~ ~ ~ ~ r ~ ~ ~ w ~ . ~ ~ ~ r ~ ~
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
PROPRIETARY FUND TYPES -ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 1997, WITH
COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1996
CITY OF ATLANTIC BEACH, FLORIDA Page 2 of 3 Pages
Somm~ter S7aiem Aopd ComlrucObu Aaoaol Bond GpRafae9lIXart8f Atto,ml
3997 1 3 If6f 59n If96
Opentlq Aerme6
cwomer Clu,6n s 2u,64o s z1o.7s6 S o s o f o f o
olnn I~ 140 0 7so 0 0 0
ToW OperNq Rer®rs 241,960 140,TSa 750 0 0 0
Oper6de6 Eapnsea
ee,mml smkn a o 0 0 0 0
cmnanl snv~a, a1,7s9 s2,ebs o 0 0 0
SuPPlia 1,617 911 0 0 0 0
Rcprin aM lAaimwra 72.160 26,17{ 0 0 0 0
Iinl, Iiybt ad Power 0 0 0 0 0 0
Degaiauan /7,210 71,279 0 0 0 0
OWU Expemu 2,116 160 0 0 0 0
(7aW OpvNma Eapeartes) (I6<,682) (116,512) 0 0 0 0
OperlUog teewe 71,298 121,216 750 0 0 0
Nawper6tiog Sxome (E6p®u)
Comufion Chu6n 0 0 0 0 0 0
swn ceacraYOn c7uaw o 0 0 0 0 0
4mwlnmme u,216 lo.eo9 0 0 69,an 40,770
(Idrrta Fipmac) (110,63]) (46,730) 0 0 0 0
cAmml'valioo of loran Cogs) a,93u o,1m o 0 0 0
TaW N9oopuuM8l6camefE8pm3H (100,571) (17,369) 0 69,617 40,130
Ne lacome Bdort Tr~sfere (23.273) 66,8/8 750 0 69,611 40,130
OW V F§~dq :,aarm (Uwl
05walmg TnmRnb 182,112 0 0 0 0 0
Oymtiiq Trwfm Om 0 0 (115) 0 (997,111) 0
Capiul Tnmfvs Ia 0 101,912 0 12,971,661 0 I,M9,0]5
G9NI Tnmfm Qn 0 (1,9/6,153) 0 (1.2a2,31~ 0 (3]3,60p
ioW q6a PNmrbq Sovta (IlSnl 162,412 (3,671,211) (415) 11,633,548 (997,771) 695,17/
Na luooe (Lam) 139,139 (1,766,391) 773 11,635,548 (927,316) 935,601
Oe9rerL0oo w shed Ameb Argoired B7
Sluts Rnermra Enavaa7 RatrMed
for C6paa1 A9yoldtlw 0 0 0 0 0 0
locreax (Derru3e) is Re6i0(d Eu6blp 159,09 (1,766,393) ll5 11,635,518 (927,516)
ReuWd P.uoh6p 10eddd, Be6~g o/Yev p,107,90J) 676,490 11,655,516 0 915,801 0
ReaWed F.ardep (DelR30, Psd of Yeu ~ S p,107,90)) ff 11,6 S 11,655,518 ~ 8,2L6 S 915,E01
44
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANCES IN RETAINED EARNINGS
PROPRIETARY FUND TYPES-ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 1997, WITH
COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTHMBER 30, 1996
CITY OF ATLANTIC REACH, FLORIDA Pale 3 oj3 Poges
Tdal UlilH7 Fuca S4nklibe Fwd TOWS
1897 1986 1987 1 I9f7 19%
(Ipa4m6 Ee.m
CLKOma CTU4a S 4,790,021 S 4,Stl,778 S (,031,669 f 1,41,121 S 3,822,712 S 5,64,702
(IOer lOCO,m ]75,133 286,0]6 11,9% 10,717 350,131 296,791
TOW OpaO{ioB Rttm 5,125,176 {,839,454 I,d],667 1,072,41 6,it2,661 5,901,495
Uvrrtlbg e.p~
Paaoeal Sariaa 876,6]] 9W,9N 1,221 6,912 619,495 907,856
C°m°Wa15e^''°a 102.7N 229,696 687,124 66),1/2 889,658 89],018
dupplia 2Q,198 219,33] 0 I2 2Q,I98 219,379
Ecpdn aM 6511pIr11tO2 462.812 289.600 1,266 2d 464.060 29D,Od
Hal, li461aM Ibva 166,141 1b1,112 0 0 366,191 261
112
~Pnnal'°0 1,076,700 9M,145 16,46 16,990 1,092,346 ,
961,1]3
phrr FiPenv4 602,716 7N,Od 169,714 139,966 972,4{0 90)
9]2
(TOW Optl4mq Eapmter) (4,03{,184) (1.609.4]01 (87]x) (631.224) (4,911,73x) ,
(4,460.694)
Optltli081OC4u< 1.090,992 1,219,981 1]0,11] 220,813 1,261,105 1,410,797
Na0optlNglucmelE6P4a1e)
COnncaaon C7u,ga 138,896 4)9,993 0 0 ]]4,696 439,993
dOVa Qcnaa0on CluBa 12],]36 136,476 0 0 Ii7,75d 126,4]6
1'6~IO'~^K 476,661 762,111 19,]81 IS,dd 456,M2 377,917
Or4raal Fapnue)
' 823,1]p (521,351) 0 0
01.171)
(521,552)
(AUmIvn
vm oflan Cau) (Ib,JI]j (6,906) 0 0 (18,71]) (8
94)
Taal NOmptl#618 IOrooe ~apeee) 149,617 198,11b 19,]41 IS,ed 169,608 ,
413,930
Ntl Iecaee 11408 Tr>omha 1,240,619 1,616,110 169,891 2]6,617 1,410,713 1,6H,]2]
phu PlaacYb $9eftl flhtl)
Opna0n8 Tnmfmb 99],716 0 0 0 997,]46 0
Oprnwq Tramfas CNl (1,391,74q (130.000) 800.000) (200.000) (1,59],71Ej (650.000)
Capful Tnmlm in 0 16,263,850 0 0 0 16,263,850
Capful Tlunfm (M 0 (16,162,650) 0 0 0
(16,362,850)
ToW pb PaOOV108 S9®ctl (Uftl) (400.000) (450,000) 800.000) [100,W0I (600,000) (650.000)
Ntl IOC0®e O.ose) 610,619 1,166,110
(10,106)
76,617
8]0,]13
I,Id,li]
OeRai+IbOw FlOW ASatls ACgo48087
57ure4 Rnm EgtlO687 Rtl4kIM
POr C4pud AegWNbns 222.187 i33,3d7 0 0 221.)81 222
381
it*eme(fNVn3e)iO ErrWr6 P,uoYC I,dJ,2d 1,390,497 (10,106) 36,61] 1,057,IV) .
1,427,114
lftlalO46 Famhg6 (ae11r11), ErCW6O[MYnr 11,948,614 10,356,171 356,216 719,601 12,301,846 10,87/,712
RafabN P.arop(aNtlq, EOd OfYm S I1,OI I,d11 S 11,914,614 I- N6,117. ~ ~ 1~ 2,1(N,616
45
w w w w w w ~^ w w w w w w w w w w w w
COMBINING STATEMENT OF CASH FLOWS
PROPRIETARY FUND TYPES -ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 1997, WITH
COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1996
CITY OF ATLANTIC BEACH, FLORIDA Page / of 6 Pa6ts
wa,n 3]a® Baner 8]m®
U3] u9s Ssn /P3s
G0 Pbn Poem 09ma01a AMYIn
ovemles townie s 36].n) s 191,6oz s 31s3]I s 6x.166
MjoMbrn,a b Pec99cile OPnaGq Ivc9oe
b Na Ga6 PawiON BP Opeamiwa:
UePrtsimiovof Ply fU,]30 290.]90 ]IS}19 619,116
Glacln u AaWa - (IVneaa) Decay.
~^~~`'~ 6.962 (0.966 (13,133) N,wl
Dm Pr^m p=^ ~ ~~' 0 0 0 0
~"em^A 11,612 0 (16.63)) 0
CLm3ea v Iia60itie ~ lsuam (DmaaeY
Aumma Palate aed Acc1v[6 Lia00eie 3]6.399 YI,]69 (1]149) (f69yx6)
Gtloosr Depoita (N,W) 30,1)l 0 0
~~~~ x],110 po}Tp o 0
°ie b o~ GO1t~~ o a.6ao> 0 0
Nel c.i Pro.lbea h opemml ennxle I,u],ea ns,az) ~3 9ol.u]
CaA Plewa Pam Neon9Wl PWmIq Ae1frYW
Coamniw Qmia W.]/O ]lbll ]A2,136 366,3s3
3e~er G:rcntio6 Cbria 0 0 12].]36 1)4A)b
1(Neaabet T:mfm Omb OWelPom) (xOD.000) (100,000) xW.000) x30.000)
Oterliel Tmden V Prom 013e1 Povda 191,631 0 62]1Y1 0
NA fi,6 P,wi6M Bf (Ilae6 Ib NaOUPWI
Pbarclvl AtlhYW ]t,(tt (Ix6,JbZ) '39).116 ZY2,333
Gab Plmn Pam G90a10,6 Me4tN PlOmc~
Aaffa3b
Reveox Bad PlweW 0 /,x66,]6] 0 13,A1}13
None Paaeeda 0 32,x62 0 2,1]1339
Iam Gala (939) (33A]0) 0,1x11 x'n,33a)
ea3..a~oe.oe Iolnea tivmabk o n o 0
ca3wemoo Nate ltaeivaWe o o 10,36: w36x
Cdi¢bomwSply NYaaOtm, 30,913 )9,](q SI,I3x 63A19
Rrapmt3. PLm m6 Pgo"rymc01 A66i1i9m) (JSb3i1 800313) (60,0x1) x.]61}I]l
IPaisip9l Palme9Y of BOOba m6 Nan Pgabki (11,115) IIS1A}3q (I6.Mn (6}30.H7)
(laleam Prix) 0116.10]1 (]0.199) (19-b91) (193.033)
CyiW T,amafm lv 0 0 0 0
GpiW Tramkn ON 0 a.36]33p 0 (1,361313)
Ntl Cai IDaab lo) Pa9rgM D3 G9Ya1 ad ReYW
Phmlcbl AatieYb (333}xl) (IM,6H0 (11].131) (929,10))
G+0 Plwn Pam 3veemyV AMY4a
ImnCM lxome 11)}62 120,363 x103]6 19D,106
Nm loaeam pkenaae) h Cuh aaq Gab Pgd]almb t3>6, 130 6p.699 1311.'x0 103331
Cta6 aed Gi Pquhalm4, Oilier 1. 19% 2, I30AN 1.16].163 3136,630 2,331,M1
Gab aob r•.e Pgvhalm4, 9ePlemhr M, 15'f] 3 3,13],011 f 2.330,161 3 1.331.100 3 3336.630
COMBINING STATEMENT OF CASH FLOWS
PROPRIETARY FUND TYPES -ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 1997, WITH
COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1996
CITY OF ATLANT{C BEACH, FLORIDA Paae 2 of 6 Panes
dlamwaln dla lam Bmd Ctvwoabn Aaaml omi GPWOrM lolemt Acnmt
ISn Is3c ISn ISSC ISn ISSd
GW }lawn SYm Opmlbd Aetlebb
aR^1l°61m'°~ f 11}96 S lit}16 5 l50 S 0 3 0 3 0
Adpfineaa b RaaaRe UPenOD6laome
b Na Caah Paovided Ih Opaa:ou:
Orynciaio9of PYOI e?}M w}» 0 0 0 0
Cbodn b Auw - (Ircenae) Dmeaa:
Anaaa Revivable (2,331) (1}w) 0 0 0 0
Omc peom Clber O9vvommla o 0 0 0 0 0
Imeaop o 0 0 0 0 0
Cbapv b IiabiliYn- Ivcmae lDxmae):
Accooa, P.labb a9d AVmed liabiliDn (213)9) z),19z o o pw.ar) o
aaomer urpow o 0 0 0 0 0
DefeaeN Reveace o 0 o D o 0
Doe b aM C9aermaaa D o o D o D
Na Gm PrmHea lb opmebf AtlMtb .ess edD,3d1 1so D r3o1,ITs) o
Caab Mt fl® NompiW P19axfo6 AeDrY4a
Comrc0ou Cbarsn 0 0 0 0 0 0
Sewn aercnlioa Cbaefn 0 D 0 0 0 0
(Opnaivd Tnmfm OOebpber Poem) 0 0 0 0 (991,)ll) 0
Opcr~liud TnealmbRom OOrr Povm Id3,112 0 0 0 0 0
Na Caab PtwNed !J (Ilse! >a Nmnpml
PlaaaeLK Aairbb IR.112 D 0 0 19'/!.))1) 0
Cash ilan Paom G9WI ad Reload PIOa0de6
AtlhRb
Revewe BOOB Paacvw 0 Ipd0,)10 0 0 0 1)O,d22
Nom provaL 0 0 0 0 0 0
Lom Cow (]iii Idi.iHl D o 0 0
Cdlecliou oo tama Rusivabk 0 0 I1,NI 3,131 II.w) 0
Cdb'liooa w Nae Reaivtlk 0 0 0 0 0 0
CdkcYOUwSpecW Aaaeumeaa 0 0 0 0 0 0
(Plopenl. Plea and Pgaipmcve Ad3ilioa) (12}111 (Id0,Of0) (2.1/2,12q (2,031,110 0 0
(Pnaipal Palmeaaa w Ro9b aD0 Naa Palable) 0 0 D 0 0 0
(menus Pain) (120,46"0 0 0 0 0 0
CyiYl Team(m m 0 0 0 12.931,461 0 1.169.0]3
CgOY Tnmfm Dot 0 p,936,130 0 0 0 0
Na Cmh (Uad IW PmeW6 Rl GPbal and Rebled - -
PbavYaAtlFRln 2)).991) (IS91T'0 Q,6w,1'IA 10.69),13{ 3z,w) 1,399,691
Caeh Plawa Fam Maio{ AeavYW
merta lrcoon I)}16 10,609 511,'!91 0 69,413 0
Na Ircnax (Devreaa) b Cad ami Caab Pgvivab4 39.069 33,)lJ R.i ld,'>13) 10,H1,131 (1,399,690 199,691
Cub a9d CaW PquFakma, Oaaber 1, ISSd 203,131 113,101 IO.d91,1fi 0 1.399,M 0
Crab a9d Cub pgoFalma, B<plemb[r )0, 133] S 261}2l f 203,131 S 4,12,116 S 10,691.131 S 0 S 1}99.691
47
~ ~ s . a ~ r ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
COMBINING STATEMENT OF CASH FLOWS
PROPRIETARY FUND TYPES -ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 1997, WITH
COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1996
CITY OF ATLANTIC BEACH, FLORIDA Page 3 of 6 Pndes
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(1,39J23p 1130.000) 800.000) R6o,o60) (1}9],3311 (630.000)
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36,651 II6AJ1 ROD,000) (200,000) 1113,316) (U}39)
0 22,)30,112 0 0 0 Zl,)b,112
0 1}26}51 O 0 0 2}x6}51
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10,362 10,361 0 0 IO,M2 10,f6x
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8,610,0393 13,193239, 0 0 R,eNp}91 Is,1912391
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0 (N,RMi,4%) 0 0 0 (11.106,936)
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14,06/,036 /,111,663 lJd}91 291,81 14,162b1J 1,]66,Ie1
3 16,913,333 f It,ON,016 3 113,40 1 ]]b}91 f 1],N1210 S 16,162,61]
48
COMBINING STATEMENT OF CASH FLOR'S
PROPRIETARY FUND TYPES-ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 1997, WI7'FI
COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1996
CITY OF ATLANTIC BEACH, FLORIDA Page 4 of 6 Paces
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49
s 1,361,b3a s 1,130,006 i 2.63J,ai1 s 270a,0a9
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S O S 110716 S O f 336,{!1
i 1x1,606 S Q1,I la S 39371) f 206,166
S 0 6 1,3at.afl S O S 11769,392
0 (1x2.120) 0 (393,W9)
0 0 0 0
S O S !766,363 i O f U,e2t,313
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ s ~ o ® r ~
COMBINING STATEMENT OF CASH FLOWS
PROPRIETARY FUND TYPES -ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 1997, WITH
COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1996
CITY OF ATLANTIC BEACH, FLORIDA Pave S of 6 Paves
SYlr,vwller 6) tlen ON CaNmalm Acaml lupd G9WIbed b9enY A~vl
319] V9f 19YI 1316 V39 V39
Ee4vn ®[U C®P~ dCad ad Cuh Pqulrlbou
Cad ~ Gd Cpoivakele
Pncic4d Aue4: f 161.32] S 203,131 3 O f O S O S 0
U,6 nJ Cad P.pirakW 0 0 6,Tf2Ai6 10,391.131 0 693,1]3
Cad W6li,ul ASeLL 0 0 0 0 0 ]03,112
Taal Cad ad Cad P.3draleeb. Prti d Ynr S 161323 S 203,11< S t.iR,116 S 10.691,131 S 0 S 1,399,699
Nmn,6 AtlieYi
F+ed Aatl imRat b (Om)
S
~ O S
O S
(113) f
(1,262,311) S
O S
0
016er tk®himl la(M) S 0 S IOf,912 S 0 S 0 f 0 S (3]3.601)
Capinlv,3ltlnW (ISOme) Papemc 3 113,TR 3 61,013 f (3]1,'!93) 3 (]23.330) 5 O S 0
Rnm !mtl P,a¢e6r
Px f 0 3 1.1]6,321 3 0 E 0 3 0 3 0
(oixaed) 0 (116,111) 0 0 0 0
Accred IdsrtM 0 0 0 0 0 130,6]1
TaW Berm Bm0 hunr4 S O S 1.060,310 3 O S O f O S 130,311
50
coMeEVUVC STATEMENT of cASx Flows
PROPRIETARY FUND TYPES-ENTERPRISE PUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 1997, WITH
COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1996
CITY OF ATLANTIC BEACH, FLORIDA Pace 6 of 6 Pales
iaYl JJfml] /l06 BavYaam Yustl Tabb
Itn 1991 iYl] 3f3f UP9 Vlb
366ea 66M Cmpoem, a(Cad ad c.d Pgolaa3m
Cad a0d CW P9vird)da
R
d
l
d 6
'L' f O.OS0,033 f 3}03}29 S OIS,e3i S 3]6}91 f 1.861902 i 3.922.1]-0
e
,r
e
Ja
.
Csh av0 Cnb Pgairalea4
11,911.fOt
13,tl6,0]3
0
0
11.921.SOt
1),636,0]3
Cub Vfdh Ertl ASN 60).]90 ]Ot,022 0 0 601.'!90 ](M,621
TaW Cub W CW Y90681evU, PUb aS Yar S i6,~3.333 t It.OM,0]b f OIS.tti S )]3,391 f 1],391,210
Nmrad AtlbY]
Feud6W Tnedmb(OW) S O t O S O S O f O f 0
d>rr Noo<a,ATmdmb(Qe) S O f O t 0 3 0 3 O t 0
CapWved issm, aemm)P~enu S 3],652 S 10,209 S O f O S 3],352 3 10,209
Rr,me Emd hare(N
Pu S 0 3 22.833.000 f 0 f O S O S 21,113,000
(DirwW) 0 (613}30) 0 0 0 (633,180)
Aarve0ltlaea 0 110.8]2 0 0 0 I10,R2
Ta5a1 Perms [ad Prvue6, S O S 22JN5,N2 ~ ®0 S 0 S 0 S 22.3JO,N2
51
~ ~ ~ ~ ~ ~ ~ [i ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
SCHEDULE OF NET REVENUES IN ACCORDANCE
WITH BOND RESOLUTIONS
ENTERPRISE FUNDS (WATER AND SEWER)
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997
CITY OF ATLANTIC BEACH, FLORIDA
Gross Revenues
Water S 2,005,981
Sewer 2,876,465
Connection Charges 328,896
Interest (Excluding Special Assessment
Interest) 353,632
Total Gross Revenues 5,564,974
Operating Expenses
Personal Servirxs 876,673
Contractual Services 120,975
Supplies 245,581
Repairs and Maintenance 430,452
Heat, Light and Power 366,141
Other Expenses 800,6]0
(Total Operating Expenses) (2,840,432)
Total Net Revenues in Accordance Wilh
Bond Resolutions 2,724,542
Capital Facilities Charges 127,756
Special Assessments -New 0
Net Revenues Plus Capital Facilities Charges and
Special Asseuments S 2,852,300
Debt Service
Interest Paid S 1,207,580
Principal Paid 0
(Capitalized InteresQ (895,475)
Required Deposits to the Reserve Account or
Renewal and Replacement Fund 0
Interest Earnings -Sinking Fund (69,613)
Total Debt Service 242,292
Debt Service Coverage Ratio 11.24
Debt Service Coverage Rntfo Excluding CapRai
Facilities Charges ] 1,71
52
1
FIDUCIARY FUNDS
Fiduciary funds aze used to account for assets held by the City in a trustee capacity or as an agent for
' individuals, private organizations, other governments, and/or other foods.
1
1
COMBINING BALANCE SHEET
FIDUCIARY FUND TYPES
ALL FIDUCIARY FUNDS
SEPTEMBER 30, 1997,
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1996
CITY OF ATLANTIC BEACH, FLORIDA
I'9We0 cm,md
P87760 (7nriue Pend9~ 7M1 RbpadHhk T3~1 A{nq- 2GNA 79/86
Autl9 1997 1996 199] 7996 1997 1996 1997 1996 1992 1996
CaW a06 CUh PquivslNS f 1,38) f 21,299 f 69.125 S 96,912 S 60,162 f 11,025 S 316,]68 f M],372 f 670,]38 f 329,608
2pYtYVralf 0 0 7,961,521 6,IZ0,260 0 0 0 0 ],961,521 6,120,260
TWtl ASSeb /,363 U,299 8,0/1,619 6,31],172 60,162 /1,011 316,]66 367,171 8,655,262 6,919,868
iJa0filb >m Pamd Wales
Awwnu Pa7abk sM A¢rvrd IistNtin 1,183 21,299 1,)25 0 0 0 0 0 3,]06 21,299
Defartd Cmopnw0o0 0 0 0 0 0 D 516,766 J67,172 316,764 76],372
T9W 1Lblilks 1,163 21,299 1,125 0 0 0 516,786 36],771 522,196 391,6]1
Fl996 W9ecA
Rmcrvtd Pm Pdicc 7}siitinp s06
od,m ~a96~m,e, 0 0 0 0 6o.16z II,MS o 0 6o,16z II,o2s
R9s9rvW Fm Rdinme9t U 0 8,0]2,721 6,517,1]2 0 0 0 0 6,Ott,124 6,51],172
T9181 P1mtl Wbo[76 _ 0 0 d.0]2,J21 6,517,1]2 60,102 11,015 0 0 8,112,]86 6,538,!9]
TIW Iia06itia a8 Plstl Wets f 1,383 f 21,299 f 6,013,619 S 6,517,173 f 60,162 f 11,025 S 516,786 f 767,372 f 6,653,242 S 6,919,666
53
COMBINING BALANCE SHEET
PENSION TRUST FUND
SEPTEMBER 30, 1997
CITY OF ATLANTIC BEACH, FLORIDA
Assets
Cash aad Cash Egaivalen4s
Inveslaxnts
Total Assets
LabBilies and Fwd Balances
IiabuRies
Adminisua[ive Fees Payable
Fwd Balances
Reserved For Retirzmeat
Tafal IJebBitiea and Fwd Balances
Police Fire Ceoaal Total
E (0,657 S 7,110 E 71,358 f 89,125
2,927,965 1,265,825 3,790,734 7,984,524
2,938,622 1,272,935 3,862,092 E 8,073,649
482 _ 206 637 1,325
2,938,140 1,272,729 3,861,455 8,072,324
E 2,938,622 f1,272,935 (3,862,092 E 8,073,649
54
1
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGF3 Qd FUND BALANCE
PENSION TRUST FUND
FOR THE YEAR ENDED SEPTEMBER 30, 1997
CITY OF ATLANTIC BEACH, FLORH)A
PoBce FSre General Total
Operating Revenues
Employer's Con[ributions f 79,808 S 38,194 f 213,538 f 331,540
E:.ployces' Cootributioas 31,259 25,659 41,860 98,778
State Contributions 68,966 39,165 0 I08,i31
Earnings on lnvesmen[s 520,151 222.186 686,549 1,428,886
Total Operating Revm[res 700,184 325,204 941,947 1,967,335
Operating E:proses
Refiremem Bcaefits 144,896 49,226 142,987 337,109
Refunds to Teradna[ed Employees 892 13,500 9,390 23,762
Ober Expenses 25,503 10,894 33,661 70,058
(Total OperatWg E:pmses) (171,291) (73,620) (186,038) (430,449)
Operating Iocome Before Tra~fas
Other Fnandng Sosrtces
Opnafing Transfers In
528,893 251,584 755,909 1,536,386
6,831 2,918 9,017 18,766
Net Income
Fund Balance, Beginning of Year
535,724 254,502 764,926 1,555,152
2,402,416 1,018,227 3,096,529 6,517,172
Fmrd Balarsce, End of Year f 2.936,140 f 1,272,729 f3,661,455 f 8,072,324
SS
I
I
I
I
I
I
I
e
ADDrrIONaI, INFORMATION
I Additional information schedules differ from financial statements becauu they usually cover more thin
one fiscal year and may present nonaccwnting data. Certain schedules are unaudited, as marked.
I
I
I
I
I
I
I
1
PENSION SCHEDULES
' Pension Revenues by Source and Expenses By Type
' Computed Pension Contribution Comparative Schedule
Malysis of Pension Funding Progress
r• . r• r• ~ ~ ~ to . . s ~ ~ «t ~ s ~ s ~
Pnxim Rn®n
Maober
Ctty
8bm- Pdioe
SWe- EiicR4tlas
Ivv~Ynwa IMrY+oO Divl6eaL
Gala or (Lou)
M'ulhomus Revwn
TaW Psalm Rermam
Pm6i9e Ra9m60a7n
Bartm W Rc6W~ Pud
PENSION REVENUES BY SOURCE AND EXPENSES BY TYPE
LAST TEN FISCAL YEARS
CITY OF ATLANTIC BEACH, FLORIDA
1997
Amain Paul 1996 1995 19H 199] 1991 1991 1990 1989 1998
f 93,778 4.9% f 111.411 f 99,113 3 97,903 3 13,61] S 2],717 f 1A,42] 3 21,510 f 18,710 S IT,127
iJ1,5b 16.]% J29,l93 217,929 194,158 194,879 207,564 118,113 171.508 111,106 116,7b
64,966 3.3% 62.126 5],554 19,918 46,680 91,691 /3,149 10,059 ]6,5]6 75,140
39,165 2.0% 19.SM 26.294 26,816 16,]12 19,118 14,013 U,133 14,603 12,398
5,300 .JS /,663 3,dY1 1,973 3,419 3,110 7,461 ],401 11,861 8,191
1,427,546 71.78 757.698 427,698 21,3W 442,123 768,6]3 M9,589 !9.797 233,127 60,617
1x,766 .9% 11,111 0 0 I2 0 0 0 0 0
f 1,986,101 1000% S 1,307.590 f 1,231,281 f 397,338 f 762,163 S 663,900 S 691,169 f 260.791 f !65,983 f 133,619
f 760.391 100.0% f 130,139 f 220,169 S 135,312 f 116,28 3 39,)73 3 89,399 f 89,610 f 37,533 f 61,810
__ e ~ __ __ __ __
56
COMPUTED PENSION CONTRIBUTION COMPARATIVE SCHEDULE
LAST TEN FISCAL YEARS
CITY OF ATLANTIC BEACH, FLORIDA '
Fiscal Contribution Rates
Year
Valuation
As Percents of
Dollar Contribution '
Ending Dete Valuation Payroll Valuation For Fiscal Year
9/30 9/30 General Police Fire Payroll Com uted Actual
1989
1987•
9.69
(0.32
10.49
- 1,454,243
158,314
167,285 ,
1990 1988• 9.20 11.55 9.36 1,716,170 184,687 186,050
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 2,964,866 326,284 327,561
1996 1994' 10.85 14.945 13.675 3,067,702 420,591 421,465
1997 1995' IL12 14.555 15.255 3,053,964 419,766 439,671 '
1998 1996' 11.99 18.895 5.405 3,106,770 441,972
' After changes in benefit provisions and/or actuarial experie~e estimates. 1
57
LJ
1
e
ANALYSIS OF PENSION FUNDING PROGRESS
LASE TEN FISCAL YEARS
CITY OF ATLANTIC BEACH, FLORIDA
(~
' (2) (4) UnNnded PBO
Ftsml (1) Pemion (3) Unfunded (5) u a Perrmlage
Year Net Assets Bendit PermN (Overfunded) Annual oC Covered
Ending Available ObBgaBon Forded PBO Coverrd PsyroB
' 9/JO For Baadlts (PBO) (1)/(2) (2){1) Payroll (4)/(5)
1987•
1988• f 1,694,786
1,888.635 E 4703,236
1,917,709 99.5%
98.5% f 8,450 E
29,074 1,4S4,7A3
1,716.170 0.6%
1.7%
1989 2,293,223 2,199,374 104.3% (93,849) 1,909.994 -
1990 2,466,544 2,565,465 96.2% 98,921 2,295,583 4.3%
1991 3,070,254 2,821,663 108.8% {2{B,S91) 2,491,992 -
1992 3,616,919 3,218,763 113.3% (428,156) 2,755,004 -
1993• 4,311,115 4,444,056 97.0% 132,941 2,964,866 4.5%
1994• 4,548,83! 5,264983 86.4% 733,152 3,067,702 23.2%
1995• 5,546.070 6,184,790 89.7% 638,720 3,053,964 20.9%
1996• 6,517,172 7,187,094 90.7% 669,922 3,106,770 21.6%
' • After changes in benefit provisions andlor actuarial experience estimates.
Analysis of the dollar amounts of ttet azsets available for benefits, pension benefit obligation, and unfunded
' pension benefit obligation in isolation can be misleading. Expressing the net assets available for benefits az
a percentage of the pension benefit obligation provides one indiratlon of the system's funding status on a
going concern basis. Analysis of Ibis percentage over time indicates whether the system is becoming
' financially stronger or weaker. Generally, the greater this percentage, the stronger the system. The
unfunded pension benefit obligation and annual covered payroll are both affemed by inflation. Expressing
the unfunded pension benefit obligation az a percenuge of annual wvered 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 system.
1
1
1
' S8
BOND COVENANT CONTINUING DISCLOSURFS
Selected Financial Information and Operating Data Regarding the System
Historical Revenue and Expenses
Major Utility Ctistomers (Unaudited)
Summary of Water Usage Nnaudited)
Summary of Waztewater Production (Unaudited)
Atlantic Beach Sewer Division
Buccaneer/lhk Harbor Sewer Division
1
1
1
i
1
1
SELECTED FINANCIAL INFORMATION AND OPERATING DATA
REGARDING THE SYSTEM
H[smrkal Revenue avd Eapensea
1993 1994 1995 1996 1997
Re•evun
Operallvg Revevun
Wakr
Customer Charges S 1,104,628 5 1.224.278 S 1,373,750 5 1,527,375 S 1.759,801
Miseellavevm Charge 242,980 325,592 261,944 273,314 332,919
1,347,608 1,549,870 1,635,694 1,800,689 2,092,721
Sewer:
Customer Charge 2.175,957 2,396.50! 2,651,992 3,154,362 3,118,621
Total OperaOag Revevun 3,523,565 3.946.371 4,287,686 4,955,051 5,21],342
Novoperativg Re•enues
lmsrea IrYOme:
Wakr 56.178 32,690 75,437 120,868 143,362
Sewer 134,397 107.119 194,568 190,106 210,270
Total Novopentlvg Revevvn 190,575 740.009 270,025 310,974 353,632
Total Rerevun 3,710,140 4,086,380 4,557,711 5,266,025 5,564,976
Expevsn
Operatlng Expense
Wakr 376,347 663,707 632,406 654,316 763,091
Sewer 1,002,787 1,014,908 1.308,148 1,161,980 1.296,781
Trial OperaOvg Eipevx (L579,184) (1.680,615) (1,940,654)) 1( 839,2961 (2,039,822)
Admivtstn[Fe and Nondirtsbaal
Wakr (t) 0 0 321,087 323,803 343,927
Sewer (q 0 0 322,279 327,803 343,927
Total Admivlstratl•e avd NOVd)visbml 0 0 (643,366) (647,606) (687,854)
Other Enpenses (160,081) (204.551) (143,734) (96,120) 012.756)
Total Expevsn (1.739,263) (1.885.166) (2,729,959) (2,583,022) (2,840,432)
Net Revevun 1,974,873 2,201.214 1,827,757 2,683,003 2,724,542
CapBal Improvement Charge
Wakr (2) 65,729 74,189 59.006 73,638 0
Sewer 114,147 717,175 121.028 126,476 127,758
TOml Capital lmprovemevt Charge 179,876 191,361 160,034 200.116 127,758
Net Rerenues Available Por lkbt Servke p) 2,154,751 2.392.578 2,00),791 2,883,119 2,852,300
Novoperatlvg Income 0?apeose)
Miscellaneous Revemk 0 0 169 0 0
0nerzst Expense) (342,784) (281.253) (336,739) (474,802) (614.318)
(Loan 4mortvaYOn) 0 0 0 (7.479) (13,383)
Total NOVaperativg Income O%apevse) (342.784) (281.231) (336,370) (482,281) (629,701)
N¢t locome Before 1)epredafbv and
Opttatlvg Traasfen S 1,811.967 5 2.111.325 S 1,671,227 S 2,400,838 S 2,222,599
NOTE: (0 Prior to focal year 1995, adminis0arivecosu were carriM by opentiog tnmfen m gercnl fend, and sm Nm na
reRected for prior yen.
(2) Prior m focal year ]997, cvmbinrA wakr wnneraion and wakr npEal facilhies charge Overt shown on Nis line.
Begiming in 1997, N<y were included uder wakr customer cbar8n.
(3) Line enrylor comparison to projcckA openrivg rzsuhs.
59
SELECTED FINANCIAL INFORMATION AND OPERATING DATA
REGARDING THE SYSTEM
Mq~or Utility Customers Nnaudited)
Set forth is a listing of major customers of the System with annual billings N excess of 520,000, based
upon billing records for fiscal year 1997. These customers wlleaively accounted for apprcximately
20.0 of System revenues for 1997.
Major Customer Annual Blliin s
Naval Off-Baze Housing 301,942
Fleet Landing (Retiremem Community) 140,456
Haonah (Regional) Park 128,854
Oaks of Atlantic Beach (Mobile Home Park) 73,805
Atlantic Village (Mobile Home Park) 6q,gg9
Sea Turtle Inn (Hotel) 50,519
Admiral's Walk (Mobile Home Park) 47,134
Sea Oats Plantation (Apartment Complex) 38,198
Comfort Inn (Hoteq 35,585
Mayport Tertace (Apartment Complex) 28,540
Total Fiscal Year 1996 S 909,924
so
1
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1
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1
1
SELECTED FINANCIAL INFORMATION AND OPERATING DATA
REGARDING THE SYSTEM
Summary of Water Usage NnaudBed)
Annual Water System Customers _ Average Annual
Total Percentage Single Unit Multi-Unit Demand Percentage
Year Population Change CAB B/OH Total CAB B/OH Total (MGD) Change
Historical (t)
1991 21,238 2.7% 3.096 0.5%
1992 21,663 2.0% (2) 3,830 1,907 5,737 298 128 426 2.778(7) (10.3)%
1993 21,813 0.7% (3) 3,904 1,916 5,820 306 130 436 2.897 4.3%
1994 22,006 0.9% (3) 3,948 1,924 5,872 313 133 446 3.131 8.1%
1995 22,259 1.2% (4) 4,108 1,933 5,041 321 135 456 3.154 0.7%
1996 (6) 22,857 2.7% (5) 4,282 2,021 6,303 328 133 451 3.237 2.6%
1997 (6) 23,280 1.8% (8) 4,420 2,067 6,487 375 133 508 3.175 (1.9)%
Atlantic Beach Division (C:.B)
Buccancer/Oak Harbor Division (B/OH)
Notes: (q Population projections based on 1990 census data, revised per service area growth in Atlantic Beach, BiOH allocated to years by
estimate
(2) 'Financial Analysis of the Water and Wastewater Utility Systems, Atlantic Beach, Florida,' (OMOber 28, 1992), Purvis, Gray and
Company
(3) Estimates of users are interpolated from 1992 and 1995 data.
(4) From analysis of Atlantic Beach 1995 billing records.
(5) From analysis of Atlantic Beach September 1996 billing records.
(6) Population equals residential growth tithes 2.3 persons per house.
(7) During 1992, Treatment Plant No. 4 war down for repairs, reducing Flows during period by .250 to .300 MGD.
(8) From analysis of Atlantic Beach 1997 billing records.
61
SELECTED FINANCIAL INFORMATION AND OPERATING DATA
REGARDING THE SYSTEM
Summary of Wastewater Production (Unaudited)
Atlantic Bearh Sewer Division
Annual Sewer Customers Average Annual
Percentage Single Multi- Flow Percentage
Year Population Change Unit Unit Totsl (MGD) Change
Historical (1) (7)
1991 12,010 3.2% 1.795 49.6%
1992 12,383 3.I% (2) 3,218 256 3,474 2.158 20.2%
1993 12,495 0.9% (3) 3,323 255 3,578 2.19t 1.5%
1994 12,561 0.5% (3) 3,365 254 3,639 2.280 4.1%
1995 12,802 1.9% (4) 3,610 253 3,863 2.634 15.5%
1996 (6) 13,202 3.1% (5) 3,751 271 4,022 1.807 (31.4)%
1997 (6) 13,650 3.3% 3,899 318 4,217 1.639 (9.29)%
Nmes: (I) 1990 Census data, revised per service area growth records from the Ciry of Atlantic Beach
(2) 'Financial Analysis of the Water and Wastewater Utility Systems, Atlantic Beach, Florida,' (October 28, 1992), Purvis, Gray and
Company
(3) Estimates of users are interpolated from 1992 and 1715 data.
(4) From analysis of Atlantic Beach 1995 billing records.
(5) From analysis of Atlantic Beach September 1996 billing records.
(6) Population Estimate equals residential growth times 2.3 persons per house.
(7) Variation in Oows due to 1&t reduction projects, 1991-92, drought, 1993 and 1994, Flooding in 1995, and projection in 1996 based
on average years, and reBecting impact of 1996 Project ldcl reduction in future.
62
~ ~ ~ ~ r ~ ~ ~ ~ ~ ~ ~ ~ r ~ i r fi ~
SELECTED FINANCIAL INFORMATION AND OPERATING DATA
REGARDING THE SYSTEM
Summary of Wastewater Produdlon
Buccaneer/Oak Harbor Sewer Division
Annual Sewer Customers Average Amual
Percentage Single MuItF Flow Percentage
Year Population Change Unil Unil Total (MGD) Change
Historical (1) (7)
1991 9,229 2.0% 1.008 28.9%
1992 9,280 0.6% (3) l,&t7 113 1,760 0.915 (9.2)%
1993 9,318 0.4% (4) 1,713 I15 1,828 0.893 (2.4)%
1994 9,445 L4%(4) 1,779 118 1,897 1.027 I5.0%
1995 9,457 0.1%(5) 1,845 120 1,965 1.028 0.1%
1996 (2) 9,655 2.1%(6) 1,923 108 2,031 1.009 (1.8)%
1997 (2) 9,795 2.0%(8) 1,984 108 2,092 1,027 1.8%
Notes: (I) 1990 Census data, revised per service area total growth of 175 units per 5 years, allocated by estimate. Taal growth from the City
of Atlantic Beach.
(2) Population Estimate equals residential growth times 2.3 persons per house.
(3) 'Financial Analysis of the Water and Watewater Utility Systems, Atlantic Beach, Florida,' (October 28, 1992), Purvis, Gray and
Company.
(4) Estimates of users are interpolated from 1992 and 1995 data.
(5) From analysis of Atlantic Beach 1995 billing records.
(6) From analysis of Atlantic Beach September 1996 billing records.
(7) Variation of flows due to lack of reliability in Bow measurements and annual rainfall---related I&I fluctuations.
(8) From analysis of Atlantic Beach September 1997 billing records.
63
1
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' REPORT ON SEWERAGE SYSTEM
CAPITAL IMPROVEMENT ACCOiJNT
1 Gay 8 s
1 Compa
1
i
1 ~ INDEPENDENT ACCOUNTANTS'REPORT
1 Honorable Mayor, City Commission and City Manager
City of Atlantic Beach
Atlantic Beach, Florida
1 As part of our audit of the general-purpose financial statements of the City of At1aBGc Beach, Florida (the
City) for the year ended September 30, 1997, we examined the City's Sewerage System Capital
Improvemem Account for the purpose of determining iF it had been maintained in accordance with
1 Chapter 17-501.610, Florida Admnistrative Code, Revewe Generation System. Our examinatioB waz
made in accordance with standards established by the American InstiNte of Certified Public Accountants
and, accordingly, included such procedures az we considered necessary in the circumstances.
1 to our opinioB, the City's Sewerage System Capital Improvement Account was maintained in accordance
with Chapter 17-SOLGIO, Florida Administrative Cade, for the year ended September 30, 1997.
i
1 December 9, 1997 /~ ~~ ~d ~" f 7
Gainesville, Florida syquJ1 _ f 7 Q '
1
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1
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1
1 Grtinb Public AtCOUnbnb
P.O. Box 23999.222 N.E. 1N Slroet • Oalnefvab. fbrCa 32txr3 • (7521778-2181 • FAX 4351137&2•vD•+
1 Laurol RiOpe Prabsaion•I GM<r • 23f7 S.E. []Ih Slrasl • Oub, FbriW 3N7/ . (352) 732-3872 • FA%1352) 732-0Sft
147 Eaft (:oee•p Avenue • Taeahaftea. FbrWa 32301 • (850) 2247tH • FAX (890) 221-7782
2831 fl'pgrnp BOUWant, Un8 t06-B • Sanfga, Fbri0a 3f236 • (W f) 3853771 • FAX (911)385-0278
•uAw w AYFaIf/.M uo r1A+++rf rn~nts ar crosxn n~aUC AcwvrrAxtf
1 YFYarApIfEA~IJI Mn1VR (ICN,II[IFDRIRKKCOVMrAMIa/YIATFCP/ANFf I/Of EC. YMCfKE ffGt4lf
ADDITIONAL ELEMENTS OF REPORT PREPARED IN ACCORDANCE
WITH GOVERN.hfENT AUDITING ST.9NDARDS, ISSUED BY THE
COMPTROLLER GENERAL OF THE UNITED STATES AND
' THE RULES OF TKE AUDITOR GENERAL OF THE STATE OF FLORIDA
i
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SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED SEPTEMBER 30, 1997
CITY OF ATLANTIC BEACH, FLORIDA
u~a Aao®b
AettlnG4U Am(ro4W
PedvY DdmM Weal H)rlarra P,t6r Yev
CPDA Pm-73uwdY Awud Rerooe aad Reraae) 6xpabilo~
Nasbn Gramlerh Nos6or Arow lOH% R rxda3 d1N3A W.apm6tve) 98097 Gdemo)
Pedrnl PfosaW Assblutt
US. De~mt of Hao>fof ao0 U~Er Derebpo®t
Pained 71unq- City' of IrkloerOle, Fb~ido:
Conm,oly Ucrdop,oruldoct GrW/Ctilkmcv GM (P1 %) I4.21d 5692.6 f 156,136 S (179,213) S 139,243 f 0 f 0 f 0 f (139,162)
N.219 5629~U 15],014 0 IJ,191 0 (57,766) N,1]4 0
US. Depu~ml ll JOati,e
Pssed 1LOR6 City of ladbovrWe, PbrN1:
Urvd Corlml and Syncm lmp,oveoed• 16.579 96G-35#2601.15? 40,007 (I,]Id) 1,714 0 0 0 (79,1702
AuumalW lofomuiimbypae Gnnl • 16.379 93CJ.2P#2601-10/ 12,291 0 0 0 0 0 0
Aulamalcd Womntion SydemGM• 16.3]9 9601-iP#2602.169 20,000 (9,051) 9,031 0 0 0 (11,031)
Aulovu,d Wam0oo Sypw Grut• 16.379 97fJfil#2602.101 1],6]0 0 1,125 1,943 (19,911) IJ,571 0
i01d PednY FSeootBl Alddact f (ISO,OIQ f 761,637 f 1,965 f (fi,J09) f $],'103 S (192,]83)
• Sloe of Florida GnNa aM Aida App,op,ia0m,
65
INDEPENDENT AUDITORS' REPORT ON
INTERNAL CONTROL STRUCTURE BASED ON AN AUD[T
OF GENERAL-PURPOSE FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Honorable Mayor, City Commission aM City Manager
City of Atlantic Beach
Atlantic Beach, Florida
We have audited the general-purpose financial statements of the City of Atlantic Beach, Florida for the
' year ended September 30, 1997, and have issued our report thereon dated December 9, 1997.
We have conducted our audit in accordance with generally accepted auditing standards and the standards
applicable to financial audits contained in Government Attduing Standards, issued by the Compvoller
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.
The management of the City of Atlantic Beach, Florida is responsible for establishing and maintaining
an internal conVOl swctttre. In fulfilling this responsibility, estimates and judgments by management
are required to assess the expected benefits and related costs of internal convol swcture policies and
procedures. The objectives of an internal convol swccure are to provide management with reasonable,
but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition,
and that vansactio77s are executed in accordance with management's author'vation and recorded properly
to permit the preparation of financial statements in accordance with generally accepted accounting
principles. Because of inherent limitations in any internal convol swcture, errors or irregularities may
' nevertheless occur and nm be detected. Also, projection of any evaluation of the swcture to furore
periods is subject to the risk that procedures may become inadequate because of changes in conditions
or that the effectiveness of the design and operation of policies and procedures may deteriorate.
In planning and performing our audit of the general-purpose financial statements of the City of Atlantic
Beach, Florida for the year ended September 30, 1997, we obtained an understanding of the internal
' convol swcture. With respect to the internal convol swcture, we obtained an understanding of the
design of relevant policies and procedures and whether they have been placed in operation, and we
assessed convol risk in order to determine our auditing procedures for the purpose of expressing our
' opinion on the general-purpose financial statements and not to provide an opinion on the internal convol
swcture. Accordingly, we do not express such an opinion.
' GNnsO Public AceounlaMs
P.O. Boa 23999. 222 N.E. tat Sveet • Gaineavilb. Fbriea 72602 • (752) 378-2a61 • FAX (352) 3]&2505
Laurel Rieye Profeasknal Center • 274] S.E. 171 Sbeet • Ocab, FbrEa 314fl . (752) 7323(172 • FAX (352) 732-0512
N7 Ent CDlkpe Avenue . T411ahaasee. Fbri0a 32301.((150) 22477/4 • FAX (650) 2141762
t 2831 mn9bq BouMar0. Un9 1068 • $arasw. Fbriea 31138 • (9.71) 3657774 • FAX (911)365-0276
YFWIM1t Of urtMwx/MRdgr. xSrtM(a Di DElfreRD N%K /drA1Ml.Wla
uf"vIU Cf AYFPFIJIMnINECi CnnYiFD NRtlCMG6AnIJlIa rAVAIF U'•oI,wFSNDaEC VMCMEfEC1W5
1
Honorable Mayor, Ciry Commission and City Manager
City of Atlantic Beach
Atlantic Beach, Florida
INDEPENDENT AUDITORS' REPORT ON
' INTERNAL CONTROL STRUCTURE BASED ON AN AUDIT
OF GENERAL-PURPOSE FINANCIAL STATEII7ENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUD7TINC STANDARDS
' (Concluded)
Our consideration of the internal control structure would not necessarity disclose aU matters in the internal
control structure that might be material wealmesses under standards established by the American Institute
of Certified Public Accountants. A material wealmess is a condition in which the desigrt or operation of
one or more of the internal wntrol structure elements does not [educe to a relatively tow level the risk
that errors or irregularities in amounts that would be material in relation to the general-purpose financial
statements being audited may occur and not be detected whhin a timely period by employees in [he
e normal course of performing their assigned functions. We noted no masers involving the internal control
stmcture and its operxGon that we consider to be material weakmsses as defined above.
' This report is intended for the information of the City Commission, management and the State of Florida.
However, this report is a matter of public record and its distribution is nm Bmited.
December 9, 1997 ~~ v ~~ -l~LO~
Gaioesviae, Florida ~'ctill~ /'- o
67
1
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INDEPENDENT AUDITORS
REPORT ON
COMPLIANCE WITH 4AWS AND REGULATIONS BASED ON AN
AUDIT OF GENERAL-PURPOSE FINANCIAL STATEMENTS
I PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDtTJNG STANDARDS
I Honorable Mayor, City Commission and City Manager
City of Atlantic Beach
Atlantic Beach, Florida
I We have audited the general-purpose financial statements of the City of Atlamic Beach, Florida as of and
for the year ended September 30, 1997, and Have issued our report thereon dated December 9, 1997.
I We condumed 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
I General of the United States. Those standards requ've that we plan and perform the audit to obtain
reasonable assurance about whether the general-purpose financial statements are free of material
misstatement.
I Compliance with laws, regulations, comracts, and grants appBcable to the City of Atlantic Beach, Florida
is the responsibility of the City's management. As part of obtaining reasonable assurance about whether
the general-purpose financial statements are free of material misstatement, we performed tests of the
I City's compliance with certain provisions of laws, regulations, contracts, and grants. However, our
objective was not to provide an opinion on overall compliance with such provisions. Accordingly, we
do not express such an opinion.
I The results of our tests disclosed no instances of noncompBance that are requ"ved to be reported under
Governmem Auditing Standards.
I This report is intended for the information of the City Commission, managemem and the State of Florida.
However, this report is a maser of public record and its distribution is not limited.
I
I December 9, 1997 ~) ~~ ~d ~py~y~pQ~G>~
Gainesville, Florida Slj~/. o0
I
I pNfNe PuElle Accountarea
P.O. Boa 13989.222 N.E. ia154ea1 •6aineavab, Fbriea 32601 • (352) 3762181 • FA% (352) 37&2505
Laurel Rifpe PrMesaional CeMar.2317 S.E. 17N Sireal • OcaB. Fbeea 3M71 • (752) 732-9872 • FA% (751) 732-0512
4t3 Eul Coae9e Avenue . TaBanaasea, Fbeea 32701 • (850) 22471N • FA% (850) 2241762
I 1831 ltirgFnB BouWare, Una 1068 • SarasWa, Fbe0a 3/238 • (911) 3863771. FAX (911)385-0278
men a a uur.+uo naw .nmurla ar cwroao wws .cwarrnm
uaaaraaurwn.annncvcur+~ao ru~ic.ccaernxrarwertcwurrts r+osac vucrce eccnan
I ~
INDEPENDENT AUDITORS' REPORT ON EXAMINATION OF MANAGEMENT'S
ASSERTION ABOUT COMPLIANCE WITH SPECIFD?D REQUIREMENTS
' Honorable Mayor, City Commission and City Manager
City of Atlantic Beach
AOantic Beach, Florida
We have examined management's assertion that the City of Atlantic Beach, Florida wmplied with the
allowable cost requirements of the grants and aids appropriations identified in the schedule of
expenditures of federal awards, for the yeaz ended September 30, 1997. Management is responsible for
the City of Atlantic Beach, Florida's compliance with those requirements. Our respoasibility 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 stamlards established by the American Institute of Certified
Public Accountants and, accordingly, included examining, on a test basis, evidrnce about the City's
' 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 dMerminafion on the City's compliance with specified requirements.
' In our opinion, management's asurtion that the City of Atlantic Beach, Florida complied with the
allowable cost requirements of the grants and aids appropriations identified in the schedule of
' expenditures of federal awards during the fiscal year ended September 30, 1997, is fairly stated, in all
material respects.
This report is intended for the information of the Mayor, City Commission, management, and applicable
state and federal agencies. However, this report is a matter of public record and its distribution is not
limited. ^ ~ ,(~
' December 9, 1997 /v/~~ ~/,c~ ~jid .~0~/~
Gainesville, Florida XX// ' • ~.
C1NnW Public AuouMarel
P.O. Box 23999.222 N.E. isl SVeel • Glinesvab, FbriOi 33602 • (352) 3]62161 • FAX (352) 778-2505
Laurol Ni09e Prolessionel Cellar • 2317 S.E. 17N Sbesl • Oa4. Fbriea 3/171 • (352) 732-3672 • FA%(352) 732-0562
' N3 Eaq Cdbp• Awrnw • TaWbassee, Fbri6a 32301 • (850) 21471N • FAX (850) 2241763
3671 Rirpinp t)Ollle'/1b, Un11068 • $vaada, FIOr16f 31236 •(911)3663771 • FAX (911)385-0238
uOreq O.nrlebY.lIDrLQSMMroYItt V ffJrIRfDNFIC •CCOUrr~lri
rEnlrr•vr+/Fiacw.onr~nevcrwreaD ruwt•ccavrr+rrrt wxArlccvussuolrc. nuuce acrors
69
MANAGEII~NT LETTER
Honorable Mayor, City Commission and City Manager
City of Atlantic Beach
' Atlantic Beach, Florida
We have audited the financial statements of the City of Atlantic Beach, Florida az of and for the fiscal
' year ended September 30, 1997, and have issued our report thetroort dated December 9, 1997.
We have issued our independent auditors' report on internal control structure and our independent
' auditors' report of compliance with laws and regulations bout dated December 9, 1997. Disclosures in
those reports, if any, should be considered in conjunction with this management letter.
' We conducted our audit in accordance with generally accepted auditing standards and the standards
applicable to financial audits cortlalned in Government Auditing Standards, issued by the Comptroller
General of the United Sates. Additionally, ottr audit waz conduced in accordance with the provisions
' of Chapter IO.SSO, Rules ojthe Auditor Genera[, which govern the conduct of local goverrunental entity
audits performed in the state of Florida and require that certain items be addressed in this letter.
' The Rules ojthe Auditor General (Section IO.SS4(Ixe)L) require that we comment az to whether or not
irregularities reported in the preceding annual financial audit repot have been corrected. There were no
irregularities disclosed in the preceding annual financial audit report.
' The Rules of the Audiror General (Section IO.SS4(I)(e)2.) require that we coltlrnent az to whether or not
recornmendatinns made in the preceding annual financial audit report have been follaµ~ed. There were
no recommendations made in the preceding annual financial audit report.
As required by the Rufes of the Auditnr Genera( (Section 10.554(1)(e)3.), the scope of our audit included
a review of the provisions of Secion 218.503(1), Florida Statutes, 'Determination of Financial
' Emergency." In connection with our audit, we determined that the City of Atlantic Beach, Florida is not
in a state of financial emergency az a consequence of the conditions described in Section 218.503(1),
Florida Statutes.
' As required by the Rufes of the Audiror Genera! (Section 10.SS4(1)(ept.), we determined that the annual
financial report for the City of Atlantic Beach, Florida for the fiscal year ended September 30, 1997, waz
' filed with the Department of Banking and Finance pursuant to Section 218.32, Florida Samtes, and is
in agreement with the annual financial audit report for the fiscal year ended September 30, 1997.
' GNnaB PuVlic Acwuntarns
P.O. Boa 23999.2Y1 N.E. tat 6Vee1 • Gainesnlb. Fbrka 32602 • (752) 3]&1161 • FA% (352) 37B-2506
Uure~ RiBpa Proleasbnal Canter • 2317 S.E. illh Stroet • lRab. FbrNa 31471 • (352) 7]2-7872 • FA% (352) 732-0612
' NI Eat Collr9a Avenu• • Tslbhaasaa. FbrAa 32307 • (850) 224]711 • FA% (850) 2741762
2831 Rirprrp BoubvaM, Una 1068 • Saraaob, FbriOa 71238 • (911)38'x377/ • FA% (9x71366-0238
•¢amrr<sn.uwriraaorww+c+mmsaraxraw wsucacWia:rum
axrsrr, araurwx«svnnaa•raxraaanwrc•rcaarrurtarwi.rrcaruarauo sac rv.cnce arcroe
70
1
Honorable Mayor, City Commission acrd City Manager
City of Atlantic Beach
Atlantic Beach, Florida
1
1
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1
MANAGEMENT LETTER
(Concluded)
The Rules of the Audlror General (Sections 10.554(1)(e~., 7., 8., and 9.) require disclosure in the
management letter of the following rnatters if no[ aheady addressed in the auditors' reports on the internal
control structure or compliance: 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 which may or may not
materially affect the financial statements; improper or inadequate accamtlng procedures (e.g., the
omission of required disclosures $om the £mancial staements); failures to properly record financial
transactions; and oth.°.r inaccuracies, irregularities, shortages, and defalcations discovered by the auditor.
Our audit disclosed no matters requ'ved to be disclosed by Rules of the Auduor Genera! (Sections
10.554(1)(e)G., 7., 8., and 9.).
This management letter is intended for the information of the City Commission, management, and the
State of Florida. However, this report is a matter of pubfic rewrd and its distribution is not limited.
December 9, 1997 ~~ ~Q!/ LL/9Lt ~~~'
Gainesville, Florida ~ Ui!
71
CITY OF
11t(a+rtlc Sutek - ~losirlct
B00 SE~iL\OLE RU1D
ATLM'iiC BEACH. FIDRa\A JSi1J3u5
'IF.I.EPfIOA'E (90U 2t1J800
FAX (90p 1fFSB0J
January 23, 1998
Honorable Charles Lester
Auditor General, State of Florida
P.O. Box 1735
Tallahassee, Florida 32302
Dear Mr. Lester:
This letter is in response to the Independent AudRors' Management Letter for the City
of Atlantic Beach, Florida for the year ended September 30, 1997. We are happy to
report that the auditors found no reportable conditions.
Thank you for your attention.
Sincerely,
,~nn B. Meuse, CPA
Finance Director
J s R. Jar
C Manager
72