1982/1983 Fiscal Year Audit 1
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CITY OF OKEECHOBEE, FLORIDA
' MANAGEMENT LETTER
Year Ended September 30, 1983
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ICITY OF OKEECHOBEE, FLORIDA
IAUDIT REPORT
REVENUE SHARING FUNDS
I 1 Account Number 10-2-047-001
Year Ended September 30, 1983
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-e Yaler
1 427 North Magnolia Avenue 305 East North Park Street
P.O.Box 3031 P.O.Box 368
Orlando,Florida 32802 Okeechobee,Florida 33472
' (305)423-3426 (813)763-0214
700 20th Street 200 North West Avenue L
P.O.Box 249 P.O.Box 247
Vero Beach,Florida 32961 Belle Glade,Florida 33430
(305)562-4158 (305)996-5525
' October 26, 1983
To the Honorable City Council
' City of Okeechobee
Okeechobee, Florida
' We have examined the combined financial statements of the
City of Okeechobee, Florida, as of and for the year ended September 30,
' 1983 and have issued our report thereon dated October 26, 1983, which
report included a disclaimer of opinion with respect to the in-
dividual financial statements of the Water and Sewer Fund and the
' general fixed assets group of accounts. Our examination was made in
accordance with generally accepted auditing standards, and accordingly,
included such tests of the accounting records and such other auditing
procedures as we considered necessary in the circumstances.
In connection with our examination, we also (1) performed
tests of compliance with the Revenue Sharing Act and regulations as
detailed in the Commentary on the Audit Requirements of the 1980
Amendments to the State and Local Fiscal Assistance Act issued by
the Office of Revenue Sharing, U. S. Department of the Treasury, and
1 (2) compared the data on the appropriate Bureau of Census Form RS-8
for the year ended September 30, 1981 (the most recent year for which
Form RS-8 was available) with the audited financial statements of the
City of Okeechobee as reported on by McAlpin, Curtis and Associates,
1 Certified Public Accountants, Ft, Pierce, Florida in their report
dated January 26, 1982.
In our opinion, for the items tested, the City of Okeechobee,
Florida complied with the aforementioned provisions of the Revenue
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I Sharing Act and regulations. Further, based on our examination and the
procedures referred to above, nothing came to our attention to indicate
that the City of Okeechobee, Florida had not complied with the afore-
' mentioned provisions of the Revenue Sharing Act and regulations.
Certified 411c Accountants
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y/7-e) G a 7/ r?. ---e/
lic/ , , /
427 North Magnolia Avenue 305 East North Park Street
P.O.Box 3031 P.O.Box368
Orlando,Florida 32802 Okeechobee,Florida 33472
(305)423-3426 (813)763-0214
' 700 20th Street
P.O.Box 249 200 North West Avenue L
P.O.Box247
Vero Beach,Florida 32961 Belle Glade,Florida 33430
(305)562-4158 (305)996-5525
October 26, 1983
To the Honorable Mayor and Members
of the City Counsel
' City of Okeechobee
Okeechobee, Florida
We have examined the combined financial statements of the
City of Okeechobee as of and for the year ended September 30, 1983,
' and have issued our report thereon dated October 26, 1983. As part
of our examination, we made a study and evaluation of the City's
system of internal accounting control to the extent we considered
' necessary to evaluate the system as required by generally accepted
auditing standards. The purpose of our study and evaluation. was to
determine the nature, timing, and the extent of the auditing pro-
' cedures necessary for expressing an opinion on the City's financial
statements. Our study and evaluation was more limited than would
be necessary to express an opinion on the system of internal account-
ing control taken as a whole.
' Management of the City of Okeechobee is responsible for
establishing and maintaining a system of internal accounting control.
' In fulfilling this responsibility, estimates and judgments by man-
agement are required to assess the expected benefits and related
costs of control procedures. The objectives of a system are to
' provide management with reasonable, but not absolute, assurance that
assets are safeguarded against loss from unauthorized use or dis-
position, and that transactions are executed in accordance with
management's authorization and recorded properly to permit the prep-
aration of financial statements in accordance with generally accepted
accounting principles.
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Because of inherent limitations in any system of internal
' accounting control, errors or irregularities may nevertheless occur
and not be detected. Also, projection of any evaluation of the system
to future periods is subject to the risk that procedures may become
inadequate because of changes in conditions or that the degree of
compliance Nith the procedures may deteriorate.
Our study and evaluation made for the limited purpose
' described in the first paragraph would not necessarily disclose all
material weaknesses in the system. Accordingly, we do not express
an opinion on the system of internal accounting control of the City
' of Okeechobee taken as a whole. However, our study and evaluation
disclosed the following conditions that we believe result in more
than a relatively low risk that errors or irregularities in amounts
that would be material in relation to the financial statements of the
' City of Okeechobee may occur and not be detected within a timely
period. These material weaknesses are set forth in the accompanying
memorandum.
The financial report filed with the Department of Banking
and Finance pursuant to Section 218.32, Florida Statutes (as amended)
for the year ended September 30, 1983 is in agreement with the combined
financial statements as of and for the year ended September 30, 1983
covered by our Accountants' Opinion dated October 26, 1983, as dis-
cussed above.
' This report is intended solely for the use of the Honorable
Mayor and members of the city counsel and the Department of Banking
and Finance and should not be used for any other purpose.
Certif ied 1 i ccountants
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CITY OF OKEECHOBEE, FLORIDA
IICOMMENTS ON ACCOUNTING PROCEDURES AND
INTERNAL ACCOUNTING CONTROLS
I The matters in this memorandum have been discussed with administrative
personnel. We would be pleased to discuss our comments at your convenience if
further clarification is desired or if we may be of assistance in connection with
these matters. This memorandum is organized into the following sections:
Particulars Page
I Fixed Assets Accounting 3
Accounting Systems Development 4
Cash Disbursements 5
Payroll 5
I Subsidiary Records 5
Investments 6
I Fixed Assets Accounting
The City has not maintained adequate detail records in support of the
recorded cost of the water and sewer plant in service or the amounts included
II in the General Fixed Assets Group of Accounts and we were unable to obtain suf-
ficient supporting documentation to form an opinion with respect to (a) the
stated cost of property items acquired in years prior to October 1, 1981 or
(b) the accumulated depreciation applicable to the water and sewer utility plant
Iin service at September 30, 1983 or the provision for the year then ended.
Responsibility for maintaining details of property items should be
I assumed by accounting personnel and implementation of property accounting pro-
cedures should begin with current year additions. To the extent historical
cost data is not available for certain old items, engineering data may be used
Ito establish replacement values or other appropriate bases for establishing
detail property records. While financial statement presentation of certain
capital assets (roads, streets, sidewalks, etc.) considered in the public domain
is optional, detailed property records for such items should still be maintained.
I The current edition of the MFOA publication, Governmental Accounting, Auditing
and Financial Reporting (GAAFR) provides substantial information as to the con-
tent and maintenance of detailed property records.
IAccumulated depreciation applicable to the recorded cost of the water
and sewer utility plant in service has been computed at a composite rate of
I 2-1/2%, or an average useful life of 40 years. The propriety of this rate
should be re-evaluated based on information developed by the detailed property
records discussed above.
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City of Okeechobee, Florida
Comments on Accounting Procedures
and Internal Accounting Controls
Fixed Assets Accounting (Cont'd)
' Amounts recorded in the General Fixed Assets Group of Accounts at
September 30, 1983 totaled $1,416, 753 of which $884,654 was added subsequent to
October 1, 1979. Accordingly, details supporting a significant portion of the
' aggregate property balance could be obtained by analyzing the expenditures for
capital outlays over a three-year period. Paid vendor invoices could be exam-
ined to obtain sufficient details to establish detailed property records for
each significant item over a reasonable minimum amount established by appro-
priate management personnel.
Consideration should also be given to a complete physical inventory
of those property items susceptible to observation and identification. The
listings prepared as a result of this work should be integrated with the
analyses of capital expenditures above.
Formal procedures for reporting property retirements should also be
1 adopted. Descriptions and other identifying data (such as tag numbers, loca-
tion, etc.) should be reported to accounting personnel on a timely basis in
order that appropriate entries to record the retirements can be made as applic-
able.
' Accounting Systems Development
Our review of the City's data processing system disclosed the follow-
ing:
' 1. The City's utility and payroll software applications operate in-
dependently from the City's general ledger software application
necessitating manual accumulation of utility billings, adjust-
' ments, collections and payroll information for posting the
general ledger accounts. The City should consider having the
necessary software modifications to fully integrate its utility
and payroll programs to its general ledger system.
2. It is our understanding that the City presently relies on its
hardware supplier, NCR, for equipment back-up in the event of
equipment failure. To assure equipment back-up in the event
an equipment failure occurs which threatens to seriously disrupt
computer operations, the City should consider entering into an
' agreement with a user having a similar equipment configuration
for reciprocal equipment back-up.
' 3. Documentation of the City's utility program is incomplete at this
time. The City should request its software consultant to pro-
vide a complete operating manual which would include a narrative
description of the various components of the system as well as
' a flow chart of the system.
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' 1 City of Okeechobee, Florida
Comments on Accounting Procedures
and Internal Accounting Controls
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Accounting Systems Development (Cont'd)
I 4. To prevent loss of data through equipment failure, the City should
consider instituting a program of routinely copying data and
storing the copy in a secure location. If such a program were
I instituted on a weekly basis, reconstruction time of data files
caused by equipment failure would be limited to a maximum period
of 5 business days.
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I 5. In discussions with Mr. Ron Barbour of NCR, it is our understanding
that two systems modifications are due to be released in Decem-
ber, 1983 which will improve data processing operations. They
are as follows:
I A. The ability to operate in multi-periods. This feature will
I enable the City to record financial transactions for
periods without having to close a prior month or fiscal
year.
II II B. A modification of the general ledger system to enable the
posting of adjustments to both balance sheet accounts
and revenue/expenditure accounts without having to gen-
erate complex entries.
II Cash Disbursements
1. When using the encumbrance system to record purchase orders, addi-
' tional care should be exercised in the recording of purchase
orders. Our work disclosed that purchase orders paid by manual
checks were not always removed from the encumbrance accounts.
2. To prevent the possibility of duplicate payment of invoices, all
items contained in paid bill files should be effectively can-
celled.
' 1 Payroll
Our tests of payroll procedures disclosed that employee files did not
Ij always include the original or copy of payroll deduction authorizations.
Subsidiary Records
1. Procedures should be instituted to reconcile the utility monthly
status report totals with general ledger accounts receivable 1
totals.
II 2. The detail of utility customer deposits should be reconciled with
general ledger accounts on a monthly basis. It is our under-
standing that utility department personnel are in the process
I of updating customer deposit records by matching receipts to the
deposit information contained within the utility program.
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1 City of Okeechobee, Florida
Comments on Accounting Procedures
and Internal Accounting Controls
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Cash Investments
1 The City has followed the practice of investing surplus cash in in-
terest bearing accounts to provide additional income for use in its operations.
In addition to investing surplus cash in interest accounts, the City should
consider having interest bearing checking accounts for all checking accounts
currently in use.
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' CITY OF OKEECHOBEE, FLORIDA
FINANCIAL STATEMENTS
' Year Ended September 30, 1983
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ICITY OF OKEECHOBEE, FLORIDA
FINANCIAL STATEMENTS
IIYear Ended September 30, 1983
CITY COUNCIL I
Edward W. Douglas
I Mayor, Chairman
James H. Knight Oakland Chapman 11
ICouncilmember, Vice Chairman Councilmember
Dowling Watford Oscar Thomas
IICouncilmember Councilmember
IADMINISTRATIVE
Richard C. Fellows 1
ICity Administrator
Bonnie S . Thomas, CMC David Conlon
ICity Clerk City Attorney I
Larry Mobley L. C. Fortner, Jr.
Chief of Police Director of Public Works
IILouis K. Tomey II J. M. Westbrook
Chief of Fire Department Building Inspector
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CITY OF OKEECHOBEE, FLORIDA
I FINANCIAL STATEMENTS
IYear Ended September 30, 1983
IITABLE OF CONTENTS
page
IAccountants ' Opinion 1
ICombined Balance Sheet - All Fund Types and Accounts Groups 3
Combined Statement of Revenues, Expenditures and Changes
in Fund Balances - All Governmental Fund Types 5
IICombined Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual - General and
ISpecial Revenue Fund Types 7
Combined Statement of Revenues, Expenses and Changes in
I Retained Earnings/Fund Balances - All Proprietary
Fund Types and Pension Trust Funds 8
Combined Statement of Changes in Financial Position
IAll Proprietary Fund Types and Pension Trust Funds 10
Notes to Financial Statements 11
ISupplementary Information to Financial Statements:
Accountants' Opinion on Supplementary Information 23
IIGeneral Fund:
IISchedule of Revenues (Budget and Actual) 24
Schedule of Expenditures (Budget and Actual) 26
IIPension Trust Funds:
Combining Balance Sheet 29
IICombining Statement of Revenues, Expenses and
Changes in Fund Balances 30
IICombining Statement of Changes in Financial Position 31
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' CITY OF OKEECHOBEE, FLORIDA
FINANCIAL STATEMENTS
' Year Ended September 30, 1983
' TABLE OF CONTENTS - Continued
Page
' Supplementary Information to Financial Statements: (Cont'd)
' Special Revenue Fund - Federal Revenue Sharing Trust Fund -
Statement of Revenues and Expenditures (Budget and Actual) 32
' Debt Service Fund - Statement of Revenues and Expenditures
(Budget and Actual) 33
Water and Sewer Enterprise Fund - Schedule of Changes in
' Reserve Accounts 34
Statistical Information:
' Accountants' Report on Statistical Information 35
Summary of Insurance Coverage 36
Schedule of Assessed Values, Tax Levies and Rates -
Last Ten Years 37
Schedule of Certain Revenues and Utility Customers - Last Ten Years 38
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e,
1 427 North Magnolia Avenue 305 East North Park Street
P.O.Box 3031 P.O.Box368
Orlando,Florida 32802 Okeechobee,Florida 33472
1 (305)423-3426 (813)763-0214
700 20th Street 200 North West Avenue L
P.O.Box 249 P.O.Box 247
Vero Beach,Florida 32961 Belle Glade,Florida 33430
1 (305)562-4158 (305)996-5525
October 26, 1983
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To The Honorable Mayor and Members
1 of the City Council
City of Okeechobee
Okeechobee, Florida
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We have examined the combined financial statements of the
1 City of Okeechobee, Florida as of and for the year ended September 30,
1983, as listed in the foregoing table of contents. Our examination
was made in accordance with generally accepted auditing standards
' and, accordingly, included such tests of the accounting records and
such other auditing procedures as we considered necessary in the cir-
cumstances, except as stated in the following paragraph.
1 The City has not maintained adequate detail records in support
of the cost of the water and sewer utility plant in service (carrying
value of $3,381,554 at September 30, 1983) and land and improvements,
buildings and improvements, furnishings and equipment, and rolling stock
included in the general fixed asset group of accounts (carrying value
of $1,416,753 at September 30, 1983) and we were unable to obtain suf-
ficient supporting documentation to form an opinion with respect to
1 the stated cost of these items acquired in years prior to October 1,
1981 or the accumulated depreciation applicable to the water and sewer
utility plant in service at September 30, 1983 or the provision for de-
1 preciation for the year then ended. Accordingly, we are unable to ex-
press, and we do not express an opinion on the accompanying financial
statements of the Water and Sewer Fund and the general fixed assets
group of accounts.
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In our opinion, the financial statements referred to above,
' other than the Water and Sewer Fund and the general fixed assets group
of accounts, present fairly the financial position of the City of
Okeechobee, Florida, at September 30, 1983, and the results of its
operations and the changes in financial position of its fiduciary pension
trust fund types for the year then ended, in conformity with generally
accepted accounting principles applied on a basis consistent with that
of the preceding year.
Certified Pt lic Accountants
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I CITY OF OKEECHOBEE, FLORIDA
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
September 30, 1983
Fiduciary
Proprietary Funds Account Groups
Governmental Fund Types Fund Employee General General Total
Revenue Debt Water Pension Fixed Long- (Memorandum
ASSETS General Sharing Service and Sewer Trust Funds Assets Term Debt Only)
Cash, including $35,577 in interest bearing
accounts $ 17,096 $ 1,211 $ 57 $ 81,208 $ 35,084 $ - $ - $ 134,656
Investments (Note 1) 283,520 65,940 102,133 432,418 586,000 - - 1,470,011
Receivables (Less allowances for doubtful
accounts) :
Customer accounts, less allowances of
$3,120 (Note 1) 9,719 - - 71,716 - - - 81,435
Due from other governmental agencies - 19,679 - - - - - 19,679
Accrued interest - - 844 823 - - - 1,667
Due from other funds 5,948 - - 15,489 - - - 21,437
Fuel inventories (Note 1) 11,654 - - - - - - 11,654
Restricted assets: (Notes 5 and 6)
Cash - - - 26,775 - - - 26,775
Investments (Note 1) - - - 89,390 - - - 89,390
Property, plant and equipment, net (Where
applicable) of accumulated depreciation (Note 2) - - - 3,381,554 - 1,416,753 - 4,798,307
Amount available in Debt Service Fund - - - - - - 97,340 97,340
Amount to be provided for retirement of
general long-term debt - - - - 428,846 428,846
Total assets $327,937 $86,830 $103,034 $4,099,373 $621,084 $1,416,753 $526,186 $7,181,197
Note: The accompanying Notes to Financial Statements are an integral part of this statement.
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CITY OF OKEECHOBEE, FLORIDA
COMBINED BALANCE SHEET I
ALL FUND TYPES AND ACCOUNT GROUPS - Continued , ,
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September 30, 1983
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Fiduciary
Proprietary Funds Account Groups
Governmental Fund Types Fund Employee General General Total ]
Revenue Debt Water Pension Fixed Long- (Memorandum
General Sharing Service and Sewer Trust Funds Assets Term Debt Only)
$ 24,785 $ - $ - $ 14,943 $ - $ - $ - $ 39,728
- - - 42,494 - - - 42,494
- - - 103,759 - - - 103,759
- - - 14,625 - - - 14,625
- - - 26,000 - - - 26,000
- - - 180 - - - 180
- - 2,012 - - - - 2,012 1
17,755 - 3,682 - - - - 21,437
25,751 - - - - - - 25,751
- - - 434,000 - - 526,186 960,186
68,291 - 5,694 636,001 - - 526,186 1,236,172
- - - 2,068,809 - - - 2,068,809 '
- - - - 1,416,753 - 1,416,753
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- - - 33,600 - - - 33,600
- - - 41,760 - - - 41,760
- - - 1,319,203 - - - 1,319,203 '
- - - - 621,084 - - 621,084
- - 97,340 - - - - 97,340 ' ,
259,646 86,830 - - - - - 346,476 1
259,646 86,830 97,340 3,463,372 621,084 1,416,753 - 5,945,025
$327,937 $86,830 $103,034 $4,099,373 $621,084 $1,416,753 $526,186 $7,181,197
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CITY OF OKEECHOBEE, FLORIDA
COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES -
ALL GOVERNMENTAL FUND TYPES
Year Ended September 30, 1983
Total
Revenue Debt (Memorandum
particulars General Sharing Service Only)
Revenues:
Taxes $ 538,163 $ - $ 9,040 $ 547,203
Intergovernmental 464,418 76,949 - 541,367
Charges for services (Note 1) 272,230 - - 272 ,230
Licenses and permits 54,974 - - 54,974
Fines and forfeitures 20,493 - - 20,493
Interest income 25,091 4,663 10,713 40,467
Miscellaneous 21,985 - - 21,985
Total revenues 1,397,354 81,612 19,753 1,498,719
Expenditures:
Public safety 759,656 - - 759,656
General government 255,524 - - 255,524
Transportation 389,792 - - 389,792
Physical environment 198,804 - - 198,804
Health, human services 15,489 - - 15,489
parks and recreation 2,783 - - 2,783
Intragovernment service - Public works 22,431 - - 22,431
Debt service:
Principal retirement - - 15,000 15,000
Interest charges - - 24,150 24,150
I Professional fees - - 500 500
Total expenditures 1,644,479 - 39,650 1,684,129
Excess (Deficiency) of Revenues Over Expenditures ( 247,125) 81,612 ( 19,897) ( 185,410)
Other Financing Sources (Uses) :
Proceeds from long-term debt 95,000 - - 95,000
Operating transfers in 89,640 - - 89,640
Operating transfers out - 9( 0,446) - ( 90,446)
Total other financing sources (Uses) 184 L____640 (.1912.L1_§.) - 94,194
Excess (Deficiency) of Revenues and Other Financing
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Sources Over Expenditures and Other Uses (Carried forward) ( 62,485) ( 8,834) ( 19,897) ( 91,216)
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jj CITY OF OKEECHOBEE, FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
ALL GOVERNMENTAL FUND TYPES - Continued
Year Ended September 30, 1983
Total
Revenue Debt (Memorandum
particulars General Sharing Service Only)
Excess (Deficiency) of Revenues and Other Financing
Sources Over Expenditures and Other Uses (Brought forward) ( 62,485) ( 8,834) ( 19,897) ( 91,216)
Fund Balances September 30, 1982 322,131 95,664 117,237 535,032
Fund Balances, September 30, 1983 $ 259,646 $86,830 $ 97,340
$ 443,816
Note: The accompanying Notes to Financial Statements are an integral part of this statement.
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CITY OF OKEECHOBEE, FLORIDA
COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL - GENERAL AND SPECIAL REVENUE FUND TYPES
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Year Ended September 30, 1983
General Fund Revenue Sharing Totals (Memorandum Only)
Variance Variance Variance
particulars Favorable Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable)
Revenues:
Taxes $ 517,500 $ 538,163 $20,663 $ - $ - $ - $ 517,500 $ 538,163 $20,663 1
Intergovernmental 482,350 464,418 ( 17,932) 80,000 76,949 ( 3,051) 562,350 541,367 ( 20,983)
Charges for services 261,546 272,230 10,684 - - - 261,546 272,230 10,684
Licenses and permits 33,610 54,974 21,364 - - - 33,610 54,974 21,364
Fines and forfeitures 20,800 20,493 ( 307) - - - 20,800 20,493 ( 307)
Interest income 50,000 25,091 ( 24,909) - 4,663 4,663 50,000 29,754 ( 20,246)
Miscellaneous 13,850 21,985 8,135 - - - 13,850 21,985 8,135
Total revenue 1,379,656 1,397,354 17,698 80,000 81,612 1,612 1,459,656 1,478,966 19,310
Expenditures:
Public safety 699,974 759,656 ( 59,682) - - - 699,974 759,656 ( 59,682)
General government 278,484 255,524 22,960 - - - 278,484 255,524 22,960
Transportation 378,275 389,792 ( 11,517) - - - 378,275 389,792 ( 11,517)
Physical environment 188,000 198,804 ( 10,804) - - - 188,000 198,804 ( 10,804)
Health, human services 20,844 15,489 5,355 - - - 20,844 15,489 5,355
Parks and recreation 29,921 2,783 27,138 - - - 29,921 2,783 27,138
Intragovernment service - Public works 24 314 22,431 1 883 - - - 24 314 22 431 1
883
Total expenditures 1,619,812 1,644,479 24,667) - - - 1,619,812 1,644,479 24,667)
1 Excess (Deficiency) of revenues over expenditures ( 240,156) ( 247,125) ( 6,969) 80,000 81,612 1,612 ( 160,156) ( 165,513) ( 5,357)
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Other financin g sources (Uses): i
1 Proceeds from long-term debt - 95,000 95,000 - - - - 95,000 95,000
Operating transfers in 140,226 89,640 ( 50,586) - - - 140,226 89,640 ( 50,586)
Operating transfers out - - - ( 80,000) ( 90,446) ( 10,446) ( 80,000) ( 90,446) ( 10,446)
union Total other financing sources (Uses) 140,226 184,640 44,414 8 000) ( 90,446) ( 10,446) 60,226 94,194 33,968
Excess (Deficiency) of revenues and other financing
sources over expenditures and other uses ( 99,930) ( 62,485) 37,445 - ( 8,834) ( 8,834) ( 99,930) ( 71,319) 28,611
Fund balances, September 30, 1982 322,131 322,131 - 95,664 95,664 - 417,795 417,795 -
Fund balances, September 30, 1983 222 201 259 646
P � $ $ $37,445 $95,664 $86,830 ($ 8,834) $ 317,865 $ 346,476
$28,611
Note: The accompanying Notes to Financial Statements are an integral part of this statement.
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CITY OF OKEECHOBEE, FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED
1 EARNINGS/FUND BALANCES - ALL PROPRIETARY FUND TYPES AND EMPLOYEE PENSION TRUST FUNDS
1, Year Ended September 30, 1983
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Fiduciary
Proprietary Funds
Fund Employee Total
Water Pension (Memorandum
particulars and Sewer Trust Funds Only)
Revenues:
Charges for services $ 889,586 $ - $ 889,586
Interest income - 53,268 53,268
Contributions - 104,591 104,591
Other operating income 342 - 342
Total operating revenues 889,928 157,859 1,047,787
Expenses:
Personal services 316,046 - 316,046
Contractual services 23,953 - 23,953
Depreciation 123,277 - 123,277
Materials and operating supplies 142,220 - 142,220
Utilities 78,533 - 78,533
Rentals and leases 629 - 629
Insurance 12,454 - 12,454
Repairs and maintenance 138,676 - 138,676
Administrative supplies and expense 9,196 - 9,196
Contribution refunds - 10,590 10,590
Retirement benefits paid - 1,371 1,371
General Fund administrative charge (Note 1) 53,471 - 53,471
Total operating expenses 898 455 11,961 910,416
Operating income (Loss) ( 8,527) 145,898 137,371
Nonoperating income (Expense) :
Interest income 52,912 - 52,912
Interest expense ( 23,226) - ( 23,226)
Impact fees 26,775 - 26,775
Miscellaneous __ 12 - 12,010
1 Total nonoperating income, net __ 68,471 - 68,471
Income before operating transfers 59,944 145,898 205,842
Operating transfers in 806 - 806
Net income (Carried forward) 60,750 145,898 206,648
I 9
CITY OF OKEECHOBEE, FLORIDA
COMBINED STATEMENT OF REVENUES EXPENSES AND CHANGES IN RETAINED
EARNINGS/FUND BALANCES ALL PROPRIETARY FUND TYPES AND EMPLOYEE PENSION TRUST FUNDS -
Cont
Continued - -- --- - - -- - - --
Year Ended September 30, 1983
Fiduciary
Proprietary Funds®
Fund Employee Total
Water Pension (Memorandum
particulars and Sewer Trust Funds Only)
Net income (Brought forward) 60,750 145,898 206,648
Retained earnings/fund balance at September 30, 1982 1,333,813 475,186 1,808,999
Retained earnings/fund balance, September 30, 1983 $1,394,563 $621,084 $2,015,647
Summary of retained earnings/fund balance
reserved for -
Revenue bond retirement $ 33,600 $ - $ 33,600
Depreciation fund 41,760 - 41,760
Employee retirement system - 621,084 621,084
Unreserved 1,319,203 - 1,319,203
$1,394,563 $621,084 $2,015,647
Note: The accompanying Notes to Financial Statements are an integral part of this statement.
10
CITY OF OKEECHOBEE, FLORIDA
COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION
ALL PROPRIETARY FUND TYPES AND PENSION TRUST FUNDS
Year Ended September 30, 1983
Fiduciary
Proprietary Funds
Fund Employee Total
Particulars Water Pension (Memorandum
and Sewer Trust Funds Only)
Sources of Working Capital:
Net income for the year $ 60,750 $145,898 $206,648
Add: Charges which did not use working capital:
Depreciation 123,277 - 123,277
Working capital provided by operations 184,027 145,898 329,925
Contributed capital 25,163 - 25,163
Total sources of working capital 209,190 145,898 355,088
Uses of Working Capital:
Reclassification of long-term debt to short-term 1,000 - 1,000
Purchases of property, plant and equipment 304,620 - 304,620
Payments of long-term debt 25,000 - 25,000
Increase in restricted assets 33,550 - 33,550
Total uses of working capital 364,170 - 364,170
Increase (Decrease) in working capital ($154,980) $145,898 ($ 9,082)
Elements of Increase Decrease in Workin: Capital:
Increase (Decrease) in current assets:
Cash ($ 90,657) $ 11,322
($ 79,335)
Investments ( 13,080) 138,986 125,906
Accounts receivable ( 44,707) - ( 44,707)
Due from other funds 6,399 ( 4,724) 1,675
Total 142 045) 145,584 3,539
Increase (Decrease) in current liabilities:
Accounts payable 1,667 - 1,667
Notes payable 1,000 000 - 1,000 000
Accrued interest ( 484) - ( 484)
Customers' deposits 10,752 - 10,752
Due to terminated employees - ( 314) ( 314)
Total 12,935 ( 314) 12,621
� I
Increase (Decrease) in working capital ($154,980) $145,898 ($ 9,082)
Note: The accompanying Notes to Financial Statements are an integral part of this statement.
(
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11
CITY OF OKEECHOBEE, FLORIDA
' NOTES TO FINANCIAL STATEMENTS
' Year Ended September 30, 1983
' Note 1 - Descri.tion of Funds and Summar of Si:nificant Accountin: Policies:
It is the policy of the City of Okeechobee to conform its accounting
' policies to generally accepted accounting principles applicable to governmental
units. The following is a summary of the more significant principles and
practices used in the preparation of these financial statements.
' Fund Accounting - The accounts of the City are organized on the basis
of funds and groups of accounts, each of which is considered to be a separate
accounting entity. The operations of each fund are accounted for by providing
' a separate set of self-balancing accounts which comprise its assets, liabilities,
fund balances/retained earnings, revenues and expenditures/expenses. The various
funds are grouped by type in the financial statements as follows:
' General Fund - The General Fund accounts for all transactions not
required to be accounted for in another fund. All general property taxes,
franchise fees, utilities taxes, licenses, fees and fines are recorded in
' this fund. Operational expenditures and capital outlays of general govern-
ment, public safety, public services and other departments are paid for
through this fund.
Reimbursements to General Fund for Administrative Char:es - General
government expenditures include certain administrative costs of operating the
City's water and sewer system. Such costs include accounting, collections,
' data processing, etc. Since a direct cost allocation plan has not been
devised, City management personnel have estimated and charged the water and
sewer operations $53,471 for the year ended September 30, 1983, which amount
' is included in revenue in the general fund as charges for services.
Federal Revenue Sharing Fund The Federal Revenue Sharing Fund is
used to account for monies received under State and Local Fiscal Assistance
' Act of 1972, as amended, and related expenditures.
Debt Service Fund - The Debt Service Fund is used to account for
the receipt of property taxes levied to pay the principal and interest on
the City's general obligation bonds.
Proprietary Fund - 'Proprietary funds are used to account for the
' financing of services to the general public where the intent of the governing
body is that the costs (all expenses including depreciation) of providing
certain goods and services be financed or recovered primarily through user
' charges. The proprietary fund used by the City is the Water and Sewer
System, which accounts for the construction, operation and maintenance of
the City-owned water and sewer system.
II Fiduciary Fund - The Fiduciary Fund is used to account for the
assets held by the City as trustee for the administration of the police,
firemen and general employees pension trust plans.
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CITY OF OKEECHOBEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30, 1983
' Note 1 - Descri.tion of Funds and Summar of Si:nificant Policies:
(Cont'd)
' General Fixed Assets Grout of Accounts - This group of accounts is
used to maintain control and cost information on City-owned property, plant
and equipment other than those of the proprietary fund.
' General Lon:-Term Debt Grou. of Accounts - This group of accounts
is used to record long-term debt which is backed by the full faith and credit
' of the City and other long-term debt which is secured by general fund revenues
and the proceeds of which are not used in proprietary fund activity.
Memorandum Totals - The columns captioned "Total - Memorandum Only"
are not necessary for a fair presentation of the financial statements, but
are presented as additional memorandum data and do not present consolidated
financial information.
Measurement Focus - Governmental (General, Federal 1: :venue Sharing and
Debt Service) fund types are accounted for on a "financial flow" basis. Ac-
cordingly, only current assets and current liabilities are included on their
' balance sheets, and the reported fund balances provide an indication of available
spendable or appropriable resources. Operating statements report increases
(revenues) and decreases (expenditures) in available spendable resources.
' Proprietary (Enterprise) and Nonexpendable Pension Trust fund types
are accounted for on a "cost of services" basis. Accordingly, all assets and
liabilities are included on their balance sheets and the reported fund equities
' provide an indication of the economic net worth of the funds. Operating state-
ments report increases (revenues) and decreases (expenses) in total economic
net worth.
Appropriations and other commitments are recognized as designations
or reserves of fund balance or retained earnings at the end of the fiscal year.
' These items are recognized as expenditures or expenses in the period in which
the actual goods or services are received and a liability is incurred.
Funds which are similar by type but not homogeneous are combined.
' Interfund transactions and balances are not eliminated on funds which are com-
bined rather than consolidated.
' Basis of Accounting - Basis of Accounting refers to when revenues and
expenditures are recognized in the accounts and reported in the financial
statements. Basis of accounting relates to the timing of the measurements made,
regardless of the measurement focus applied.
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' CITY OF OKEECHOBEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30, 1983
' Note 1 - Description of Funds and Summary of Significant Accounting Policies:
(Cont'd)
' f All governmental funds are accounted for using the modified accrual
basis of accounting. Revenues are recognized when they become measurable and
available as net current assets. Uncollected ad valorem taxes are not recorded
' as revenues because, although measurable, they are not available until collected.
Accounts receivable for refuse collection and interest on investments are
recorded as revenues as earned.
Expenditures are generally recognized, under the modified accrual basis,
in the accounting period in which the liability is incurred. Exceptions to the
rule include accumulated unpaid employee vacation and sick pay, and principal
and interest on general long-term debt which is recognized when due.
Proprietary Funds and Pension Trust Funds are accounted for on the
accrual basis. Revenues are recognized when earned and expenses are recognized
when they are incurred. Unbilled water and sewer utility service revenues
($27,000 at September 30, 1983) are recorded at year end.
Budgets - The City enacts an annual budget, by ordinance, after con-
ducting the required public hearings. The budget adopted is on a basis consistent
with the accounting principles followed by the City.
Budgets presented in the accompanying financial statements include all
amendments made to the original adopted budget.
' Investments - Investments, consisting of certificates of deposit and
repurchase agreements are stated at cost which approximates market.
' Property, Plant and Equipment - Property, plant and equipment acquired
for general governmental purposes are recorded as expenditures in the General
Fund and capitalized at cost in the general fixed assets group of accounts. No
' depreciation has been provided on general fixed assets. The utility plant and
equipment utilized in the City 's water and sewer system is stated at. cost.
Additions, improvements and expenditures that significantly extend the life of
an asset are capitalized.
Repairs and maintenance costs which do not extend the lives of assets
are charged to operations when incurred. Depreciation has been provided
principally at a composite rate of 2-1/27.
I
Inventories - Inventories of motor fuels are stated at cost determined
on a first-in, first-out basis.
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CITY OF OKEECHOBEE, FLORIDA
INOTES TO FINANCIAL STATEMENTS - Continued
IIYear Ended September 30, 1983
IINote 2 - Property, Plant and Equipment:
The carrying value of property, plant and equipment recorded in the
j water and sewer fund at September 30, 1983 was as follows:
II Utility plant in service -
Balance, September 30, 1982 $4,242,229
II Acquired during the year ended
September 30, 1983 (Including
construction-in-progress in the
amount of $131,592) 304,620
I Total 4,546,849
Less : Accumulated depreciation 1,165,295
INet book value $3,381,554 1
The carrying value of property, plant and equipment at September 30,
I 1982 included $4,127 ,219 in carrying value of assets acquired prior to October 1,
1981. Depreciation expense for the year ended September 30, 1983 was $123,277.
Construction-in-progress in the amount of $131,592 at September 30, 1983
IIprimarily represents engineering fees associated with a new wastewater treatment
facility to be constructed by the City, (See Note 8) .
I
IA summary of changes in General Fixed Assets follows: 1
Balance Balance i
II
Oc 1
tober , 1982 Additions Retirements September 30, 1983 I
Land and improvements $ 536,695 $127,881 $ - $ 664,577
Buildings and
I improvements 133,748 85,368 - 219,116
Furnishings and equipment 200,718 7,962 208,680
Rolling stock 304,459 24,568 4,647 324,380
I 1, Total $1,175,620 $245,779 $4,647 $1,416,753
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' CITY OF OKEECHOBEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30, 1983
' Note 3 - Long-Term Indebtedness:
Long-term indebtedness at September 30, 1983 was composed of the
following:
' particulars Amount
' General Long-Term Debt
$480,500 Original issue General Obligation
Bonds, due in annual installments of
' $15,000 to $35,000 through July 1, 1996 $340,000
Notes and capitalized lease obligation:
7% Capital improvement notes to a bank,
due $9,500 semiannually plus interest,
' through May, 1988 secured by and payable
from a pledge of the City's share of
one half cent Florida State sales tax $95,000
' 8% Capital improvement note to a bank,
due $9,167 annually, plus interest,
through 1988; collateralized by funds
' other than ad valorem taxes 45,833
8.5% Installment note, due $1,123 monthly
including interest through January 1,
1987; collateralized by equipment 37,585
Capitalized lease obligation, payable $275
monthly including interest at 18% through
November, 1986 7,768 186,186
Total general long-term debt $526,186
Particulars Amount
' Revenue Bonds
$350,000 Original issue 1958 Water and
' Sewer Serial Bonds, due in annual install-
ments of $14,000 to $23,000 through
July 1, 1988; interest at 4-1/2% $100,000
$400,000 Original issue 1972 Water and
Sewer Serial Bonds, due in annual
installments of $5,000 to $24,000
' through January 1, 2012; interest at 5% 360,000
Total revenue bonds $460,000
16
CITY OF OKEECHOBEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
' Year Ended September 30, 1983
' Note 3 - Long-Term Indebtedness: (Cont'd)
Outstanding general obligation bonds above are redeemable at the option
of the City on any interest date by payment of a premium of 3 percent through
' 1986; 2 percent between 1986-91 and 1 percent after July 1, 1991. Interest is
payable at 7.5 percent on bonds maturing through 1982; at 6.75 percent for bonds
maturing 1983 through 1990; at 6.875 percent for bonds maturing 1991 through
' 1995, and at 6.75 percent for bonds maturing in 1996.
The 1958 water and sewer revenue bonds are secured by the net revenues
of the water and sewer system and utilities service taxes. The bonds are re-
deemable in whole or in part in inverse order of maturity on any interest date
at par and accrued interest plus a redemption premium of 4-1/2%.
The 1972 water and sewer revenue bonds are secured by a pledge of the
net revenues of the water and sewer system and cigarette taxes. The bonds are
subordinate to the outstanding 1958 water and sewer revenue bonds and are re-
deemable in whole or in part in inverse order on any interest date at par and
accrued interest.
A summary of the changes in all long-term debt above for the year ended
' September 30, 1983 is as follows: 1
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CITY OF OKEECHOBEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30, 1983
Note 3 - Long-Term Indebtedness: (Cont'd)
Proprietary
General Long-Term Debt Water and Sewer
General Notes and Revenue Bonds Total
Obligation Capitalized 1958 1972 Long-Term
Bonds Lease Total Series Series Total Debt
Balance, September 30, 1982 $355,000 $113,254 $468,254 $119,000 $366,000 $485,000 $953,254
Additions - 95,000 95,000 - - - 95,000
payments during the year 15,000 22,068 37,068 19,000 6,000 25,000 62-.- --I068
Balance, September 30, 1983 $340,000 $186,186 $526,186 $100,000 $360,000 $460,000 $986,186
II
Annual principal requirements for the
next five years are as follows:
Year ended September 30,
1984 $ 20,000 $ 40,889 $ 60,889 $ 20,000 $ 6,000 $ 26,000 $ 86,889
1985 20,000 42,232 62,232 21,000 6,000 27,000 89,282
1986 20,000 43,737 63,737 22,000 6,000 28,000 91,737
1 1987 20,000 31,163 51,163 23,000 7,000 30,000 81,163
1988 25,000 28,165 53,165 14,000 7,000 21,000 74,165
Thereafter 235,000 - 235,000 - 328,000 328,000 563,000
Total $340,000 $186,186 $526,186 $100,000 $360,000 $460,000 $986,186
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CITY OF OKEECHOBEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30, 1983
Note 3 - Long-Term Indebtedness: (Cont'd)
Proprietary
General Long-Term Debt Water and Sewer
General Notes and Revenue Bonds Total
Obligation Capitalized 1958 1972 Long-Term
Bonds Lease Total Series Series Total Debt
The annual requirements to amortize all debt
outstanding as of September 30, 1983, including interest
payments totalling $561,044 are as follows:
Year ended September 30,
1984 $ 43,138 $ 56,063 $ 99,201 $ 24,500 $ 24,000 $ 48,500 $ 147,701
1985 41,788 52,872 94,660 24,600 23,700 48,300 142,960
1986 40,437 50,809 91,246 24,655 23,400 48,055 139,301
1987 39,087 36,732 75,819 24,665 24,100 48,765 124,584
1988 42,738 29,816 72,554 14,630 23,750 38,380 110,934
1989 41,050 - 41,050 - 23,400 23,400 64,450
1990 39,363 - 39,363 - 24,050 24,050 63,413
1991 37,675 - 37,675 - 23,650 23,650 61,325
a 1992 40,956 - 40,956 - 24,250 24,250 65,206
1993 38,894 - 38,894 - 23,800 23,800 62,694
1994 36,831 - 36,831 - 24,350 24,350 61,181
1995 39,769 - 39,769 - 23,850 23,850 63,619
1996 37,362 - 37,362 - 24,350 24,350 61,712
1997 - - - - 23,800 23,800 23,800
1998 - - - - 24,250 24,250 24,250
1999 - - - - 23,650 23,650 23,650
2000 - - - - 24,050 24,050 24,050
2001 - - - 23,400 23,400 23,400
1 2002 - - - - 23,750 23,750 23,750
1 2003 - - - - 23,050 23,050 23,050
2004 - - - - 23,350 23,350 23,350
2005 - - - - 22,600 22,600 22,600
2006 - - - - 22,850 22,850 22,850
2007 - - - - 23,050 23,050 23,050
2008 - - - - 23,200 23,200 23,200
2009 - - - - 23,300 23,300 23,300
2010 - - - - 24,350 24,350 24,350
2011 - - - - 24,300 24,300 24,300
2012 - - - - 25,200 25,200 25,200
1i Total $519,088 $226,292 $745,380 $113,050 $688,800 $801,850 $1,547,230
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CITY OF OKEECHOBEE, FLORIDA
II Continued
NOTES TO FINANCIAL STATEMENTS - C
Year Ended September 30, 1983
II 1
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Note 3 - Long-Term Indebtedness: (Coned)
I At September 30, 1983, there was $97,340 available in the Debt
Service Fund to service the general obligation bonds.
I ■ Note 4 - Contributed Capital:
The source and additions to contributed capital are as follows:
II ' Balance Balance
Source September 30, 1982 Additions September 30, 1983
Connection fees $
221,413 $25,163 $ 246,576
Developers 338,761 338,761
Federal grant 71,160 - 71,160
I Local Public Works Grant 417,740 - 417,740
Federal Revenue Sharing Funds 619,572 619,572
General Fund 100,000 - 100,000
Okeechobee Beach Water
Association 275,000 - 275,000
I Total $2,043,646 $25,163 $2,068,809
II 1
Note 5 - Revenue Bond Reserve and Retirement Funds:
The 1958 and 1972 Water and Sewer Revenue Bond Ordinances require,
II ■ among other things, deposits on a monthly basis, of amounts necessary to provide
for semi-annual interest and annual principal requirements. In addition, the
1958 Revenue Bond Ordinance requires a reserve equal to the largest annual bond
Iprincipal and interest payment while the 1972 Revenue Bond Ordinance requires
a reserve of $23,400. At September 30, 1983, the amounts required and the amounts
on deposit are as follows:
I '
1958 Revenue 1972 Revenue
Bonds Bonds Total
11
I Maximum reserve $24,500 $23,=,j0 $47,900
Deposits for bond principal and
interest requirements 6,125 18,000 24.,125 '
II 1 Balance of construction funds -
required to be deposited in
Sinking Fund 2,380 2,380 ,
i
I Reserve Balance - September 30,
1983 $30,625 $43,780 $74,405
II I
At September 30, 1983 amounts included in restricted assets (cash and
investments) in the accompanying combined balance sheet for these requirements
j totalled $74,405.
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CITY OF OKEECHOBEE, FLORIDA
rNOTES TO FINANCIAL STATEMENTS - Continued
1
IIYear Ended September 30, 1983
II i
Note 6 - Depreciation Fund:
The 1958 Water and Sewer Revenue Bond Resolution requires that a De-
preciation Fund be maintained. The minimum amount required is 5% of gross water
collected during the preceding calendar year. The Fund may
and sewer revenues g P
to pay for capital additions or
I be used, with the approval of the City Council, o p y p
unforeseen emergencies. At September 30, 1983, investments included as restricted
I assets in the accompanying combined balance sheet for the Depreciation Fund
totalled $41,760.
Note 7 - Pension Plans:
II 1 The City has three pension plans covering substantially all the City's
regular employees. Total pension expense for the year was $30,139 including,
1 with respect to the general employees benefit plan, amortization of past service
cost over a 33 year period. It is the City's policy to fund pension expense as
determined by actuarial valuation. Mandatory employee contributions to the
'
plans are at the rate of 5°1 of earnings. Accumulated employee contributions II
totalled $177,674 at September 30, 1983 as follows:
II General $119,721
Police 41,162
IFire 16,791
Total $177,674 To 1 177 1$ I
II 1
The plans covering the City's firefighters and police officers are
also funded by the State of Florida from a tax on fire insurance premiums
II collected. State contributions to these plans totalled $6,123 and $19,168,
respectively, during the year ended September 30, 1983.
A summary of the actuarial present value of accumulated plan benefits ,,
II and plan net assets as of October 1, 1982 (the most recent valuation date) is as
follows:
General Police Fire
I Vested Benefits: J
Members currently receiving payments $ 14,993 $ -
$
Other members _ 119,631 49,231 13,163 I
IITotal vested benefits 134,624 49,231 13,163
Non-Vested Benefits 18,446 3,737 761
IITotal Actuarial present Value of Accumulated
plan Benefits $153,070 $ 52,968 $13,924
I �
Net Assets Available for Benefits _____
$235,622 $173,430 $66,134
IIActuarial Assumed Investment Rate of Return 6% 6% 6%
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II CITY OF OKEECHOBEE, FLORIDA
I i
ii NOTES TO FINANCIAL STATEMENTS - Continued I
1 I
1 Year Ended September 30, 1983
1 Note 7 - Pension Plans: (Coned)
Principal actuarial assumptions used in the valuation above are sum-
marized as follows:
Mortality - The 1951 Group Annuity Mortality Table Projected by
Scale C to 1970 (regraduated) ; females set back 5 years.
IIInterest - 6% per year compounded annually, net expenses:4
I Retirement Age - 60 for police officers and firefighters, 65 for all
other employees, immediately if over assumed retirement age.
IISalary ;Increases - 5% per year until the assumed retirement age.
! Funding Method - Frozen Entry Age Actuarial Cost Method.
II I
Note 8 - Commitments and Contingencies:
I Commitments On April 18, 1983, the City passed an ordinance authori-
zing issuance of bonds not to exceed $3,212,900 for improvements to the City's
I I wastewater treatment and collection systems. Proceeds of the bond issue are to
I be used in the refunding of the City's 1958 Revenue Bonds and for construction
costs. As of September 30, 1983, the bonds had not been issued.
II I
On October 3, 1983, in the City Council's regular meeting, application
for a loan from Farmer's Home Administration totaling $2,212,900 and a grant from
' the Environmental Protection Agency totaling $33,080 in connection with the pro-
i
ject was approved by the City Council.
r Litigation - The City is plaintiff in a suit seeking reconstruction or
II replacement of a clearwell at an estimated cost of $500,000. It is anticipated
that future judgments will be in the City's favor.
ILease Obligation - The City is obligated under a noncancellable capital certain office equipment. The lease expires in November, 1986 at which 1
time the equipment becomes the property of the City upon payment of $1. The cost
1 of the equipment ($10,832) has been capitalized as furnishings and equipment in
I General Fixed Assets. Future lease payments required have been included in Note 4
(principal payments, notes and capitalized lease) .
I Accrued Vacation and Sick Leave Benefits - Full-time and permanent
r employees accrue a paid vacation period ranging from six days after six months 1
of continuous service up to 20 days after fifteen years of service. Unused
IIr vacation may be accumulated up to a maximum of thirty days.
Sick leave for employees is accumulated at the rate of 12 days per
year. Payment for unused sick leave upon termination of employment may be made
II I for employees with 10 years or more of continuous service at a rate of 25% of
' the unused sick leave balance.
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CITY OF OKEECHOBEE, FLORIDA
is
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30, 1983
'I'I
Note 8 - Commitments and Contingencies: (Cont'd)
Accumulated unpaid vacation and sick pay to which employees would be
' entitled upon termination totalled $41,194 and $10,863, respectively, at
September 30, 1983. Vacation and sick leave benefits are charged to expense as
I'I paid by the City.
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SUPPLEMENTARY INFORMATION
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' 23
-e / If?' .--e/
i
427 North Magnolia Avenue 305 East North Park Street
P.O.Box 3031 P.O.Box368
Orlando,Florida 32802 Okeechobee,Florida 33472
(305)423-3426 (813)763-0214
700 20th Street
P.O.Box 249 200 North West Avenue L
Vero Beach,Florida 32961 P.Florida Box 430
(305)562-4158 Belle Glade,0n 33430
' (305)996-5525
October 26, 1983
' To the Honorable Mayor and
Members of the City Council
City of Okeechobee
Okeechobee, Florida
Our examination of the combined financial statements of the
City of Okeechobee, Florida was made primarily for the purpose of
forming the opinion included on page 1 of this report. The data
contained in pages 24 to 38 in this report are presented for purposes
of additional analysis and are not a required part of the combined
financial statements of the City of Okeechobee, Florida. The in-
formation has been subjected to the audit procedures applied in the
examination of the combined financial statements and in our opinion,
is fairly stated in all material respects in relation to the combined
financial statements taken as a whole.
Certified Pub,i.ic Accountants
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24
I CITY OF OKEECHOBEE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES
IIit (Budget and Actual)
Year Ended September 30, 1983
I
h Variance
I
Favorable
Budget Actual (Unfavorable)
Taxes:
II 1 Ad valorem taxes $ 250,000 $ 266,430 $16,430
j Franchise fees 148,500 152,921 4,421
i Utility service taxes 119,000 118,812 ( 188)
517,500 538,163 20,663
1 Intergovernmental Revenues:
State shared revenue:
II
Cigarette tax 80,000 77,333 ( 2,667)
State revenue sharing 176,000 176,013 13
J Mobile home licenses 1,000 1,707 707
II
1/2c Sales tax 90,000 75,914 ( 14,086)
Alcoholic beverage licenses 800 1,326 526
Gasoline tax refund 1,000 1,331 331
Shared revenues from other
1 local units:
Road and bridge 16,318 15,829 ( 489)
County occupational licenses 4,000 4,325 325
1 Dual tax - County 113,232
482,350 110,640 (__L522)
464,418 1( 7,932)
Charges for Services: -
II Fire protection service 7,200 7,200
Sanitation fees 200,000 210,793 10,793
Miscellaneous 54,346 54,237 ( 109)
II261,546 272,230 10,684
Licenses and Permits:
II Occupational licenses 25,000 35,768 10,768
Building permits 6,610 14,836 8,226
Competency cards 2,000 4,370 2,370
33,610 54,974 21,364
IIFines and Forfeitures:
Court fines 20,000 19,488 ( 512)
II Police education 500 1,005 505
(
Code enforcement fines 300 300)
20,800 20,493 ( 307)
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CITY OF OKEECHOBEE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES -- Continued
(Budget and Actual)
Year Ended September 30, 1983
1
Variance
I Favorable
Actual
Budget �Unfavorab_]
IIInterest Earnings 50,000 25,091 ( 24,909)
Miscellaneous :
I I State Street Sign Grant 10,050 10,050 -
Other 1,000 5,966 4,966
Sale of assets 2,751 2,751
Rents and royalties 2,800 2,775 ( 25)
I ' Refunds of prior year expenditures - 443 443
8
13,850 21,985 ,135
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Total $1,379,656 $1,397,354 $17,698
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CITY OF OKEECHOBEE,■ FLORIDA
GENERAL FUND
SCHEDULE OF EXPENDITURES
1 (Budget and Actual)
Year Ended September 30, 1983
II
1 Variance
II 1
Favorable
Budget Actual (Unfavorable)
,
II I public Safety:
Law enforcement:
Personal services $ 334,586 $ 337,725 ($ 3,139)
Operating expenses 72,975 59,487 13,488
1 I Capital outlay 14,500 100,780 ( 86,280)■ Total law enforcement 422,061 497,992 ( 75,931)
Fire control:
II Personal services 153,859 142,625 11,234
Operating expenses 61,801 57,060 4,741
Capital outlay 21,000 19,844 1,156
I Total fire control 236,660 219,529 17,131
I it Protective inspections:
Personal services 33,215 35,787 ( 2,572)
1 Operating expenses 7,538 6,054 1,484
II
Capital outlay 500 294 206
Total protective inspections 41,253 42,135 ( 882)
Total public safety 699,974 759,656 ( 59,682)
IGeneral Government:
Legislative:
Personal services 23,320 21,103 2,217
II Operating expenses 28,072 30,074 ( 2,002)
Capital outlay 5,222 61 5,161
Total legislative 56,614 51,238 5,376 ■
Executive:
I Personal services 47,454 47,946 ( 492)
Operating expenses 9,597 7,798 1,799 I
Capital outlay 121 83 38
I jl Total executive 57,172 55,827 1,345
Financial and Administrative:
I Personal services 93,491 93,221 270
Operating expenses 41,522 32,377 9,145
Capital outlay 21,220 15,994 5,226
Total financial and administrative 156,233 141,592 14,641
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CITY OF OKEECHOBEE, FLORIDA
IGENERAL FUND
ll SCHEDULE OF EXPENDITURES - Continued
1 (Budget and Actual)
Year Ended September 30, 1983
II I
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'I Variance
I
■ Budget Actual Favorable
(Unfavorable)
I General Government: (Contd)
Comprehensive planning:
1I Personal services 1,500 1,475 25
Operating expenses 3,565 2,460 1,105
II Capital outlay - - -
Total comprehensive planning 5,065 3,935 1,130
Judicial:
Personal services 2,100 1,575 525
Operating expenses 1,300 1,357 ( 57)
Capital outlay - - -
Total judicial 3,400 2,932 468
Total general government 278,484 255L524 22,960
Transportation:
1 Road and street facilities:
Personal services 120,815 123,879 ( 3,064)
Operating expenses 107,032 109,054 ( 2,022)
I Capital outlay 150,428 156,859 ( 6,431)
Total transportation, road
and street facilities 378,275 389,792 ( 11,517)
II Physical Environment:
Garbage/solid waste control services:
Personal services - - -
1 Operating expenses 188,000 198,804 ( 10,804)
-Capital outlay
Total physical environment,
Isolid waste services 188,000 198,804 ( 10,804)
Human Services:
Health: I
I Personal services 2,154 60
15,429 2,094
Operating expenses 18,390 29 2,961
Capital outlay 300 - 300
IITotal human services, health 20,844 15,489 5,355
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i CITY OF OKEECHOBEE, FLORIDA
IGENERAL FUND
SCHEDULE OF EXPENDITURES - Continued
I/ 1 (Budget and Acutal)
1 i
Year Ended September 30, 1983
I {
Variance
I/ I
Favorable
Budget Actual (Unfavorable)
I } Culture/Recreation:
Parks and recreation:
Personal services - - -
Operating expenses - - -
Capital outlay
29,921 2,783 27,138
Total culture/recreation,
parks and recreation 29,921 2,783 27,138
IIIntragovernment Services:
Public Works:
I Personal services 21,014 20,800 214
Operating expenses 2,650 1,570 1,080
Capital outlay 650 61 589
Total intragovernment services,
Ipublic works 24,314 22,431 1,883
Total expenditures $1,619,812 $1,644,479 ($24,667)
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CITY OF OKEECHOBEE, FLORIDA
PENSION TRUST FUNDS
COMBINING BALANCE SHEET
September 30, 1983
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Police General
Officers ' Firemen's Employees'
Retirement Retirement Retirement
ASSETS Fund Fund Fund Total
Cash $ 8,884 $ 5,661 $ 20,539 $ 35,084
Investments in savings certificates and
savings accounts (At cost, which
approximates market) 212,000 79,000 295,000 586,000
$220,884 $84,661 $315,539 $621,084
LIABILITIES AND FUND BALANCES
Liabilities:
Due to terminated employees $ - $ - $ - $ -
Fund balances:
Reserved for retirement 220,884 84,661 315,539 621,084
$220,884 $84,661 $315,539 $621,084
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CITY OF OKEECHOBEE, FLORIDA
PENSION TRUST FUNDS
COMBINING STATEMENT OF REV__ENUES EXPENSES
AND CHANGES IN FUND BALANCES
Year Ended September 30, 1983
Police General
Officers' Firemen's Employees'
Retirement Retirement Retirement
Particulars Fund Fund Fund Total
Revenues:
State tax on insurance premiums $ 19,168 $ 6,123 $ - $ 25,291
Employer's contributions - - 30,138 30,138
Employees ' contributions 11,273 5,213 32,676 49,162
Interest earnings 19,163 7,191 26,914 53,268
Total revenues 49,604 18,527 89,728 157,859
Expenses:
Employees ' contribution refunds 2,150 - 8,440 10,590
Retirement benefits paid - - 1,371 1,371
Professional fee - - - -
Total expenses 2,150 - 9,811 11,961
Revenues over (Under) expenses 47,454 18,527 79,917 145,898
Fund Balances, September 30, 1982 173,430 66134 235,622 475,186
Fund Balances, September 30, 1983 $220,884 $84,661 $315,539 $621,084
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CITY OF OKEECHOBEE, FLORIDA
PENSION TRUST FUNDS
COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION
Year Ended September 30, 1983
Police General
Officers ' Firemen's Employees'
Retirement Retirement Retirement
particulars Fund Fund Fund Total
Sources of Working Capital:
Excess of revenues over (Under) expenses -
Working capital provided by operations $47,454 $18,527 $79,917 $145,898
Uses of Working Capital - - - -
Increase (Decrease) in working capital $47,454 $18,527 $79,917 $145,898
Elements of Increase in Working Capital:
Cash $ 3,459 ($ 7,469) $15,332 $ 11,322
Investments, at cost 43,995 25,996 68,995 138,986
Due to employees - - 314 314
Due from other funds - - ( 4,724) ( 4,724)
Increase (Decrease) in working capital $47,454 $18,527 $79,917 $145,898
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CITY OF OKEECHOBEE, FLORIDA
SPECIAL REVENUE FUND - FEDERAL REVENUE SHARING TRUST FUND
STATEMENT OF REVENUES AND EXPENDITURES
(Budget and Actual)
Year Ended September 30, 1983
Variarce
Favorable
Particulars Budget Actual (Unfavorable)
Revenues:
Revenue sharing entitlements $80,000 $76,949 ($ 3,051)
Interest earnings - 4,663 4,663
Total revenues 80,000 81,612 1,612
Expenditures - - -
Revenues over expenditures 80,000 86,612 1,612
Other Financing Uses:
Operating transfers out 80,000 90,446 ( 10,446)
Revenues over expenditures $ - ($ 8,834) ($ 8,834)
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CITY OF OKEECHOBEE, FLORIDA
DEBT SERVICE FUND
STATEMENT OF REVENUES AND EXPENDITURES
(Budget and Actual)
it
Year Ended September 30, 1983
! i
Variance
Favorable
P articulars Budget Actua l (Unfavorable
)
Revenues:
Ad valorem taxes $ 7,973 $ 9,040 $1,067
Interest income 4,500 10,713 6 213
Total revenues 12,473 19,753 7,280
Expenditures:
Bond principal retirements 15,000 15,000
Bond interest expense 24,150 24,150 -
Professional fees 500 500
Total expenditures 39,650 39,650
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Expenditures over revenues ($27,177) ($19,897) $7,280
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CITY OF OKEECHOBEE, FLORIDA
WATER AND SEWER ENTERPRISE FUND
SCHEDULE OF CHANGES IN RESERVE ACCOUNTS
Year Ended September 30, 1983
Bond Reserve and
Retirement Fund
Total Depreciation Current Maximum
Reserved Fund Total Maturities Reserve
Balance - September 30, 1982 $106,940 $32,491 $74,449 $26,694 $47,755
Additions
From Operating Fund:
Depreciation fund requirement 5,665 5,665 - - -
Bond principal requirement 26,000 - 26,000 26,000 -
Bond interest requirement 23,655 - 23,655 23,655 -
li Interest earned on investment 7,627 3,604 4,023 - 4,023
Total additions 62, 947 9,269 53,678 49,655 4,023
Deductions
payments for:
Bond principal 25,000 - 25,000 25,000 -
Bond interest 24,715 - 24,715 24,715 -
Transfer to Revenue Fund 4,007 - 4,007 129 3,878
Total deductions 53,722 - 53,722 49,844 3,878
Total 116,165 41,760 74,405 $26,505 $47,900
Liabilities payable
From restricted assets:
Matured bond interest coupons $ 180 $ - $ 180
Current portion of bonds payable 26,000 - 26,000
Accrued interest 14,625 - 14,625
40,805 - 40,805
Balance - September 30, 1983 $ 75,360 $41,760 $33,600
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S TAT I S TI CAL I NFORMATI ON
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W(e.gla,,47/
427 North Magnolia Avenue
P.O.Box 3031 305 East North Park Street
Orlando,Florida 32802 . Box 472
(305)423-3426 Okeechobee,Florida F
(813)763-0214-0214
700 20th Street
P.O.Box 249 200 North West Avenue L
Vero Beach,Florida 32961 P.Florida Box 247
(305)562-4158 Belle Glade,(305) 9 33430
1 (305)996-5525
October 26, 1983
i
To the Honorable Mayor and
Members of the City Council
City of Okeechobee
Okeechobee, Florida
I
Our examination of the financial statements of the City of
' Okeechobee, Florida was made for the purpose of forming the opinion on
the combined financial statements taken as a whole included else-
where herein.
The accompanying statistical information is presented for
additional analysis purposes and is not a required part of the
combined financial statements.
1 This information has not been subjected to the audit pro-
cedures that were applied in the examination of the combined financial
1 statements. Accordingly, we express no opinion on the statistical
information.
Certified Pu is Accountants
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CITY OF OKEECHOBEE, FLORIDA
I SUMMARY OF INSURANCE COVERAGE
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September 30, 1983
11 1 Description Coverage
Fire and Extended Coverage:
I Buildings and contents (90 Percent co-insurance -
$100 Deductible) $1,682,780
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Comprehensive General Liability:
II Bodily injury 300,000
Property damage 300,000
Personal injury liability 300,000
ILaw Enforcement Liability:
Bodily injury, personal injury, property damage
II 1 ($100 Deductible) 500/1,000,000
Workers' Compensation and Employer's Liability Statutory Rates
II ! Vehicular Equipment:
Bodily injury 100/300,000
Property damage 50,000
I Uninsured motorist 35,000
Collision ($100 Deductible) ACV
Comprehensive ($50 Deductible) ACV
I , Scheduled Property Floater ($250 Deductible)
242,687
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Public Officials Bonds:
City Clerk 15,000
II Other employees 15,000
police and Full-Time Firemen:
Accidental death 20,000
Volunteer Firemen:
I Accidental death 10,000
Medical payments 5,000
Disability - Total 100
IIDisability - Partial 50
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CITY OF OKEECHOBEE, FLORIDA
1 SCHEDULE OF ASSESSED VALUES, TAX LEVIES
AND RATES - LAST TEN YEARS
1
Real Personal Homestead
IIYear Property Property Total Exemption
1983 $54,725,644 $12,102,101 $66,827,745 $17,665,060
II 1982 57,589,660 10,664,660 68,254,320
67,511,633 14,162,210
1981 57,036,510 10,475,123 14,061,980
1980 51,225,720 9,725,167 60,950,887 5,173,430
1979 34,756,690 8,787,664 43,544,354 5,034,700
II 1978 34,065,350 8,587,844 42,653,194 4,905,430
1977 28,053,703 6,872,990 34,926,693 4,702,690
1976 24,370,665 7,241,590 31,612,255 4,585,570
II 1975 23,630,191 5,987,420 29,617,611
26,905,452 4,479,230
1974 22,237,112 4,668,340 4,336,100
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Tax Levy and Applicable Rates
Levies Rates
I Debt General
Debt General Service Government
Year Service Government Mills Mills
II1983 $12,674 $261,497 .150 3.913
1982 8,668 291,007 .127 4.250
1981 8,574 286,924 .127 4.250
II 1980 36,386 335,209 .58 5.500
1979 40,248 179,780 .83 4.137
1978 41,852 168,054 .88 3.940
II 1977 43,989 157,519
145,732 1.11 4.510
1976 35,090 1.11 4.610
1975 37,848 135,945 1.11 4.590
II1974 51,542 123,475 1.65 4.590
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CITY OF OKEECHOBEE, FLORIDA
SCHEDULE OF CERTAIN REVENUES AND UTILITY CUSTOMERS
LAST TEN YEARS
Revenues - Other Than Property Taxes - General Fund
State
Revenue
Fire
Sharing Occupational Utility Fines and Franchise Department Anti-Recession
Year (Note) Licenses Taxes Forfeitures Fee Permits Interest Payment Fund Miscellaneous
1983 $329,260 $40,138 $118,812 $20,493 $152,921 $14,836 $25,091 $ - $ - $21,985
1982 251,194 32,175 114,551 23,031 154,823 10,493 64,132 - - 43,250
1981 257,325 22,228 108,286 13,813 137,759 23,459 69,536 - - 4,240
1980 243,055 20,084 100,857 19,827 110,587 12,995 61,733 - - 1,671
1979 251,212 20,551 93,107 18,125 93,232 10,856 76,173 - - 2,035
1978 243,923 17,974 92,458 18,317 87,758 7,401 54,990 7,776 25,863 7,076
1977 235,839 18,783 82,858 24,817 72,821 8,349 49,860 35,000 51,084 16,662
1976 243,536 17,491 80,779 46,477 54,324 9,065 43,099 15,000 - 3,737
1975 237,607 15,725 68,100 42,202 103,703 8,530 31,801 15,000 - 6,456
1974 210,969 20,106 69,560 52,964 37,330 10,694 20,912 13,750 - 4,653
Connection
Sewer Charges Water Water Water Total
Service Water Delinquent Interest on (In Aid of Hydrant Meters in Meters Meters Non- Water Unmetered Sewer
Year Charges Billings Charges Miscellaneous Investments Construction) Rental Operation Cut Off Operative Meters Customers Connections
1983 $130,189 $712,251 $20,146 $11,219 $52,912 $25,163 $27,000 3,102 370 - 3,472 - 462
1982 109,448 701,272 17,372 22,324 73,181 13,400 27,000 3,129 130 13 3,272 - 462
1981 82,359 569,905 12,228 6,647 70,738 24,525 27,000 2,979 222 13 3,214 - 459
1980 79,453 535,973 9,580 6,732 53,657 15,650 23,280 2,849 272 1 3,122 - 450
I 1979 66,844 494,849 9,280 5,557 33,288 23,460 22,440 2,738 286 13 3,037 - 430
1978 59,724 436,451 9,140 3,658 30,961 19,975 25,000 2,612 236 19 2,867 - 428
1977 59,506 413,666 10,220 2,838 18,225 13,660 25,000 2,454 281 6 2,741 10 424
1976 49,867 357,349 7,404 47,046 14,289 10,965 25,000 2,394 268 1 2,663 29 423
1975 33,034 249,405 6,514 3,266 13,056 9,400 25,000 2,353 234 11 2,598 - 410
1974 35,181 244,293 6,430 2,988 12,073 13,467 25,000 2,228 267 1 2,496 - 392
' Note - Includes additional two-cent cigarette tax and 1/2 cent sales tax.
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