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Audit Report 09.30.1978 1 - CITY OF OKEECHOBEE, FLORIDA FINANCIAL STATEMENTS September 30, 1978 McALPIN CURrie; & Ar;.c;orIATF"- CFRTIFlrn PllRllr ...rrr'llII\JT.........n. ...... CITY OF OKEECHOBEE, FLORIDA CITY OFFICIALS September 30, 1978 MAYOR - COUNCIL Mayor Council - President Council - Vice-President Councilman Councilman Councilman Audley Dunham Russell V. Domer Edward W. Douglas Lavon Bass Lytle Raulerson J. H. Knight ADMINISTRATIVE City Clerk - Acting City Attorney Superintendent - Water and Sewer Department Acting Chief of Police Chief of Fire Department Building Inspector Sylvia Christian David Conlon L. C. Fortner, Jr. Larry Mobley Olen Godwin Richard B. Spray McALPIN CURTIS & ASSOCIATES. CERTIFIED PUBLIC ACCOUNTANTS ~ CITY OF OKEECHOBEE, FLORIDA FINANCIAL STATEMENTS September 30, 1978 TABLE OF CONTENTS Page Accountants' Report 1 Financial Section Combined Balance Sheet - All Fund Types and Account Groups 2 Combined Statement of Revenues, Expenditures, Transfers and Chmlges in Fund Balances 3 Combined Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances - Budget and Actual - General and Special Revenue Fund Types 4 Water and Sewer Fund Balance Sheet Statement of Revenues, Expenses and Changes in Retained Earnings Statement of Changes in Financial Position 5 6 7 Statement of Changes in General Fixed Assets 8 Statement of Changes in General Long-Term Debt 9 Notes to Financial Statements 10 Other Financial Information Accountants' Report on Other Financial Information Statement to Bondholders Schedule of General Fund Revenues - Budget and Actual Schedule of Fund Revenues - Budget and Actual Federal Revenue Sharing Fund Debt Service Fund Schedule of General Fund Expenditures - Budget and Actual Schedule of Fund Expenditures and Transfers - Budget and Actual Federal Revenue Sharing Fund Debt Service Fund Schedule of Changes in Reserve Accounts - Water and Sewer Fund 12 13 14 15 15 16 19 19 20 Statistical Tables Schedule of Bond Principal and Interest to Maturity General Obligation Bonds 1958 Water and Sewer Revenue Bonds 1972 W~ter and Sewer Revenue Bonds Schedule of Insurance Coverage Schedule of Assessed Values, Tax Levies and Rates _ Last Ten Years Schedule of Revenues and Utility Customers - Last Ten Years 21 22 23 24 25 26 McAlPIN CLJRTI<\ ^' A c,s.nrl A T!:<:' rJ:DTltICr..... ,n. ,... & ,...,..........._.. .__ - McALPIN, CURTIS & ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS IRA M. McALPIN, JR., C.P.A. LYMAN B. CURTIS, C.P.A. L. LEE THOMAS, C.P.A. GERALD ^. DiBARTOLOMEO, JR., C.P.A. ROBERT W. SUMMERHA YS, JR., C.P.A. 111 ORANGE AVENUE P.O. BOX 3346 FORT PIERCE, FLORIDA 33450 (305) 461-6120 Honorable Mayor and City Council City of Okeechobee Okeechobee, Florida We have examined the financial statements of the various funds and account groups of the City of Okeechobee, Florida at September 30, 1978 and for the year then ended, as listed in the financial section of the foregoing Table of Contents (Pages 1 to 20, inclusive). 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. The City does not maintain detailed records of the Water and Sewer Property or General Fixed Assets, nor is adequate control maintained over capital additions and retirements, particularly as with regard to items constructed by the City. We do not know, and it is impractical to ascertain, if the recorded cost of property and equipment in the Water and Sewer Fund and in the Statement of General Fixed Assets is a fair presentation of the cost of the City investment in Fixed Assets. In our opinion, except for the effect of the lack of records and con- trols on the assets and net income in the Water and Sewer Fund and assets in the Statement of General Fixed Assets, the aforementioned financial statements present fairly the financial position of the various funds and account groups of the City of Okeechobee, Florida at September 30, 1978 and the results of operations of such funds and the changes in financial position of the Water and Sewer Fund for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. jr;c~fl!g:,~' ~~~ J McA1p. , Curtis & Associates Certified Public Accountants November 8~ 1978 - 1 - r- - -"._-- CITY OF OKEECHOBEE, FLORIDA cor>mINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS September 30, 1978 Assets Cash Certificates of Deposit Accounts receivable Taxes receivable Leins receivable Allowance for estimated uncollectib1es Due from other funds Inventory Accrued interest receivable Utility Plant General fixed assets Accumulated depreciation Amount available in Debt Service Fund Amount to be provided for retirement of general long-term debt Total Assets Liabilities and Fund Equity Liabiliti.es Accounts payable Employee payroll deductions Contracts payable Water deposits Escrow deposits Due to other funds Deferred revenues Matured bonds and interest coupons Revenue bonds payable (Note 2) General obligation bonds payable (Note 3) Total Liabilities Fund Equity Investments in general fixed assets Contributed capital (Note 4) Retained earnings: Reserve for Revenue Bond Retirement (Note 5) Reserve for Depreciation Fund (Note 6) Unreserved Fund Balance: Designated for Debt Service Undesignated Total Fund Equity Total Liabilities and Fund Equity See Notes to Financial Statements. - 2 - - - l I I I . General Fund Types Federal Revenue Sharing $ 33,281 130, 640 General $105,986 875,011 34,997 2, 768 (37,765) 1,912 $982~909 $ 7,513 4,189 135 10,227 22,064 $163,921 Debt Service $ 6,951 106,030 135 $113,116 $ 2,012 2,012 111,104 960,845 $163,921 960,845 163 , 921 111,104 $982.909 $163.921 $113.116 I I I I I I I II I ,I I I I I I I I I 1 I I I Proprietary Fund Types Account Groups Total General General (Memorandum Only) Water and Fixed L~ng-Tenn September 30, Se\ver Assets . Debt 1978 1977 $ 219,745 $ 365,963 $ 288,987 420,156 C'. 1,531,837 1,291,090 45,6720) 45,672 177,975 34,997 34,997 (3,943)") 2, 7 68 2 , 7 68 (41,708) (41,707) 135 30,276 1,912 1, 914 477 477 870 3,164,283 ~~ 3,164,283 2,508,161 $504,675 504,675 469,470 (644,312) (644,312) (565,204) $111 , 104 111,104 105,855 303,896 303,896 324,145 $3.202.078 $504,675 ~415,000 $5.381,699 $4.629,597 $ 11,299 $ 18,812 $ 11,876 1,825 6,014 5,688 97,079 97,079 57,391 69,883 69,883 64,970 11,270 11,270 870 135 30,276 10,227 90 2,102 2,507 574 OOO/zs ~Ji 574,000 593,000 ,. -- $415,000 l.15 , 000 430,000 765,446 ':""1- 415,000 1,204,522 1,196,578 $504,674 504,675 469,470 1,385,668 1,385,668 873,212 75,095~ 75,095 74,414 31,767 / :'- 31,767 29,479 944,102' 944,102 860,333 111,104 105,855 1,124,766 1,020,256 2,436,632 504,675 4,177,177 3,433,019 $3.202.078 004.675 $415.000 $5.381.699 ~.629.597 MeAt piN CUR liS & ASSOCl~TlS, CFRIIFIW PUBLIC ACCQt;NT\NTS r I - .=- CITY OF OKEECHOBEE, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND Ct~GES IN FUND BALANCES GOVERNMENTAL FUND TYPES year Ended September 30, 1978 General Fund Revenues Taxes Licenses and permits Intergovernmental revenues Charges for services Fines and forfeitures Miscellaneous Total Revenues $334,116 25,375 275,218 7,893 18 , 317 56,517 717,436 Expenditures General government Public safety Physical environment Transportation Human services Culture and recreation Debt Service: Principal retirement Interest and fiscal charges Total Expenditures 201,421 363,700 12,150 113,462 10,779 701,512 Transfers Transfers to Water and Sewer Fund Total Expenditures and Transfers 701,512 Excess (Deficiency) of Revenues Over Expenditures and Transfers 15,924 Fund Balance - October 1, 1977 944,921 $960,845 Fund Balance - September 30, 1978 See Notes to Financial Statements. - 3 - - 'or Federal Revenue Sharing Fund $110,875 5,640 116,515 27,929 27,929 88,586 75,335 $163,921 - ....... Debt Service Fund $ 42,955 7,369 50,324 15,000 30,075 45,075 45,075 5,249 105,855 $111,104 ~ ~ ~ I I Total (Memorandum Only) ~ September 30, 1978 1977 ~ $ 377,071 $ 331,691 25,375 27 ,132 386,093 403,007 I 7,893 36,370 .~ 18,317 24 , 817 69,526 69,324 I 884,275 892,341 I 201,421 195,226 363,700 340,772 12,150 13,330 I 113,462 100,220 10,779 10,821 3,500 I 15,000 10,000 30,075 30,825 I 746,587 704,694 I 27,929 324,816 774,516 1,029,510 I 109,759 (137,169) I 1 , 126,111 1,263,280 $1,235.870 $1,126.111 I I I I I] I] McALPIN CURTIS & ASSOCIATES. CERTIfIED PUBLIC ACCOUNT^'HS CITY OF OKEECHOBEE, FLORIDA COMBINED STATEHENT OF REVENUES, EXPENDI~URES, TRANSFERS AND C1lhu.'1GES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUND TYPES Year Ended September 30, 1978 Budget Revenues Taxes Licenses.and permits Intergovernmental revenues Charges for services Fines and forfeitures Misce 11aneous Total Revenues $304,000 25,500 319,100 70,100 19,700 37,000 77 5,400 Expenditures General government Public safety Physical environment Transportation Human services Contingencies Total Expenditures 207;232 447,898 12,000 133,210 12,339 25,000 837,679 Transfers Transfers to Water and Sewer Fund Total Expenditures and Transfers 837,679 Excess (Deficiency) of Revenues Over Expenditures and Transfers (62,279) Fund Balance - October I, 1977 944,921 $882.642 Fund Balance - September 30, 1978 See Notes to Financial Statements. - 4 - General Fund Actual $334,116 25,375 275,218 7,893 18,317 56,517 717,436 201,421 363,700 12,150 113,462 10,779 701,512 701,512 15,924 Over (Under) Budget $ 30,116 (125) (43,882) (62,207) (1,383) 19,517 (57,964) (5,811) (84,198) 150 ( 1 9 , 748 ) (1,560) (25,000) (136,167) (136,167) 78,203 944,921 $960,845 ~ 78.203 ~ ~ ~ I I Federal Revenue Sharing Fund Total I Over OMemorandum Only) Over (Under) (Under) Budget Actual Budget Budget Actual Budget I $ 304,000 $ 334,116 $ 30,116 I 25,500 25,375 (125) I $101,000 $110,875 $ 9,875 420,100 386,093 (34,007) 70,100 7,893 (62,207) 19,700 18,317 (1,383) 3,000 5,640 2,640 40,000 62,157 22,157 104,000 116,515 12,515 879,400 833,951 (45,449) 207,232 201,421 (5,811) 447,898 363,700 (84,198) 12,000 12,150 150 133,210 113,462 (19,748) 12,389 10,779 (1,560) 25,000 (25,000) 837,679 701,512 (136,167) 179,230 27,929 (151,301) 179,230 27,929 (151,301) 179,230 27 , 929 (151,301) 1,016,909 729 ,441 (287,468) (75,230) 88,586 163,816 (137,509) 104,510 242,019 75,335 75,335 1,020,256 1,020,256 $ 105 $163,921 $ 163,816 $ 882,747 $1.124.766 $ 242,019 MrAIPIr\: rllPTlC R. ACCAr'I'Trc- r.....,.-.r.rw~ ~.._.._ ._____ _ r i ~_.- CITY OF OKEECHOBEE, FLORIDA WATER AND SE\~ER FUND BALANCE SHEET September 30, 1978 ASSETS Current Assets Cash Certificates of Deposit Accounts receivable Less allowance for uncollectible accounts Accrued interest receivable Due from Revenue Bond Reserve and Retirement Fund Totai Current Assets Restricted Assets Revenue Bond Reserve and Retirement Fund Cash Certificates of Deposit Revenue Bond Depreciation Fund (Note 6) Certificates of Deposit Total Restricted Assets Utility Plant Plant, property and equipment Less accumulated depreciation Net Utility Plant TOTAL ASSETS See Notes to Financial Statements. - 5 - $ 192,835 339,989 45,672 (3,943) 477 125 26,910 48,400 31,767 3,164,283 644,312 ~ $ 575,155 107,077 2,519,971 $3,202,203 LIABILITIES AND FUND EQUITY Current Liabilities Accounts payable Accrued payroll deductions Contracts payable Current portion of long-term debt Water deposits Escrow deposits Current Liabilinies (Payable From Restricted Assets) Matured interest coupons Due to Revenue Fund Total Current Liabilities Long-Tenn Debt Revenue Bonds - Series 1958 (Note 2) Revenue Bonds - Series 1972 (Note 2) Contract payable Less current portion Total Long-Tenn Debt Fund Equity Contributed capital (Note 4) Retained earnings: Reserves: Revenue bond requirements (Note 5) Depreciation Fund (Note 6) Unreserved Total Fund Equity TOTAL LIABILITIES AND FUND EQUITY $ 75,095 31,767 944,102 -.. $ 11,299 1,825 82,982 3,700 69,883 11,270 180,959 90 125 215 $ 181,174 188,000 386,000 14,097 588,097 3,700 584,397 1,385,668 1,050,964 2,436,632 $3,202.203 McAlPH CURTIS & Assocl~TEs. CEP.TlfI'O PUBLIC ACCOU,"lA"TS ~ ~ CITY OF OKEECHOBEE, FLORIDA WATER AND SEWER FUND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS Year Ended September 30, 1978 Revenues Water sales Sewer charges Hydrant rental Penalties Interest earnings Miscellaneous Total Revenues Operating Expenses Salaries and wages Payroll taxes Group insurance Chemicals Materials and supplies Truck expense Electricity General insurance Repairs Office expense Legal and audit Engineering fees Pension plan contribution Telephone Miscellaneous Total Operating Expenses $146,999 9,269 4,756 58,848 17,647 3,953 40,183 13,609 13,815 5,556 4,054 40 , 011 5,000 1,576 5,107 Operating Income Other Deductions Depreciation Interest - revenue bonds Interest - other Total Other Deductions 79,107 28,635 71 Net Income Retained Earnings - October 1, 1977 Retained Earnings - September 30, 1978 See Notes to Financial Statements. - 6 - $ 436,451 59,724 25,000 9,140 30,961 3,658 564,934 370,383 194,551 107,813 86,738 964,226 $1,050.964 McALPIN CURTIS & ASSOCIATES, CEp.Tlrrm Pl'BI.lC ACCOUNTANT> r I I 1 ., 1T "",,.. ._,........""",,,.. - - CITY OF OKEECllOBEE, FLORIDA HATER AND SEWER FUND STATE}lliNT OF CHANGES IN FINANCIAL POSITION Year Ended September 30, 1978 Sources of Working Capital Net income Expense not requiring outlay of working capital - depreciation Working Capital Provided By Operations Contributed capital Total Sources of Working Capital Decrease in Working Capital $ 86,738 79,107 165,845 512,456 678,301 656,122 2,520 450 23.713 682,805 $ 41504 Uses of Working Capital Additions to utility plant Increase in restricted assets Decrease in liabilities payable from restricted assets Payments on long-term debt Total Uses of \~orking Capital Decrease in Working Capital Consists of Increase (Decrease) in Current Assets Cash Certificates of Deposit Accounts receivable Accrued interest receivable Due from Revenue Bond Reserve and Retirement Fund $ 101,428 61,608 (132,303) (106) (45) 30,582 Increase (Decrease) in Current Liabilities Accounts payable Accrued payroll deductions Contracts payable Due to General Fund Current portion of long-term debt Water deposits Escrow deposits 5,174 169 47,443 (29,971) (3,042) 4,913 10.400 35,086 Decrease in Working Capital $ 4,504 See Notes to Financial Statements. - 7 - McALPIN CURTIS & ASSOCIATES, CERTIFIED rL:BUC ACCOUNTANTS - - CITY OF OKEECHOBEE, FLORIDA STATEMENT OF CHANGES IN GENERAL FIXED ASSETS Year Ended September 30, 1978 Balance Balance OctQQer 1, 1977 Additions Retirements Septembe+ 30, 1978 Land and improvements $111,937: $16,775 $128,712 Buildings and improvements 97,233 97,233 Furnishings and equipment 98 , 317 10,856 109,173 Rolling stock 161,983 11,474 $3,900 169,557 Total $469,470 $39.105 $3,900 $504,675 See Notes to Financial Statements. - 8 - McALPIN CURTIS & ASSOCIATES. CERTlFIW PUBliC ACCOUNTANTS r ~ CITY OF OKEECHOBEE, FLORIDA STATEMENT OF CHANGES IN GENERAL LONG-TERM DEBT Year Ended September 30, 1978 General Obligation Debt Service Balartce Bonds Fund Balance October 1, 1977 Retired Operations September 30, 1978 Amount available in Debt Service Fund $105,855 $ 5,249 $111,104 Amounts to be provided for retirement of long-term debt 324,145 $15,000 (5,249) 303,896 Total Available and To Be Provided $430,000 $15,000 $ $415,000 General Obligation Debt Payable $430,000 $15,000 $ $415,000 See Notes to Financial Statements. - 9 - ~Ar ^ I PI"-l rIII1T!t. 1.. .b..c:.cr-.rl.& Trc. r~C'TI,"I~n flllRllr ArrnllJrrtJTAJrr,JT( i I I I I I I I I I I I I .." , ""1111' CITY OF OKEECHOBEE, FLORIDA NOTES TO Flll'ft..NCIAL STATEMENTS September 30, 1978 Note 1 - Significant Accounting Policies Bases of Accounting - The accrual basis of accounting is followed for the Water and Sewer Fund. All other funds -follow ,the modified accrual basis. Investments - Investments in certificates of deposit are stated at cost. General Fixed Assets - General fixed assets are recorded as expenditures in the General Fund at the time of purchase and capitalized at cost in the general fixed asset group of accounts. Utility Plant - Additions to Utility Plant are stated at cost. Depreciation is computed on a composite annual rate of 2-1/2%. Note 2 - Revenue Bonds Payable The 1958 Water and Sewer Revenue Bonds are secured by a pledge of net revenues of the Water and Sewer System and the utility taxes. The bonds bear interest at the rate of 4-1/2% and are due in annual principal installments ranging from $16,000 to $23,000 with the final payment due in 1988. The 1972 Water and Sewer Revenue Bonds are secured by a pledge of net revenues of the Water and Sewer System and cigarette taxes. The bonds bear interest at the rate of 5% and are due in annual principal installments ranging from $5,000 to $24,000 with the final payment due in 2012. Note 3 - General Obligation Bonds Payable The general obligation bonds are secured by the full faith and credit of the City. The bonds are being retired by a levy of ad valorem taxes. The bonds bear interest at rates varying between 6.75% - 7.5% and are due in annual principal installments ranging from $15,000 to $35,000 with the final payment due in 1996. Note 4 - Contributed Capital The source and additions to contributed capital are as follows: Balance Balance Source October 1, 1977 Additions September 30, 1978 Connection fees $124,403 $ 19,975 $ 144,378 Developers 22,280 21,230 43,510 Federal grant 71,160 71,160 Local Public Works Grant 385,478 385,478 Federal Revenue Sharing Funds 413,213 27,929 441,142 General Fund 100,000 100,000 Okeechobee Beach Water Association 142,156 57,844 200,000 Total $873.212 $512.456 $1,385,668 - 10 - r- I ,~- - CITY OF OKEECHOBEE, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 1978 Note 5 - Revenue Bond Reserve and Retirement Funds The 1958 and 1972 Water and Sew~r Revenue Bond Ordinances require, among other things, deposits on a monthly basis, of amounts, necessary to provide for semi-annual interest and annual principal requirements. In ~ddition, the 1958 Revenue Bond Ordinance requires a reserve equal to the largest annual bond principal and interest payment while the 1972 Revenue Bond Ordinance requires a reserve of $23,400. At September 30, 1978, the amounts required and the amounts on deposit are as follows: Cash Balance - September 30, 1978 1958 Revenue 1972 Revenue Bonds Bonds $24,975 $23,400 6, 115 18,225 90 2,380 " 31,180 44,005 125 $31,305 $44.005 Maximum reserve Deposits for bond principal and interest requirements Matured interest coupons Balance of contruction funds required to be deposited in Sinking Fund Reserve Balance - September 30, 1978 Due to Revenue Fund Note 6 - Depreciation Fund The 1958 Water and Sewer Revenue Bond Ordinance requires that a Depreciation Fund of $25,000 be maintained. The Fund may be used, with the approval of the City Council, to pay for capital additions or unforeseen emergencies. At September 30, 1978, the Fund was $6,767 in excess of requirements. Note 7 - Pensions The City has three pension plans, which cover substantially all employees except the City Council, Mayor, and City Attorney. The total pension expense for the year 1978 was $12,500. The plans are funded with whole life insurance policies and an auxiliary fund to provide the required pension payments. Contributions are based on level premium funding. The actuarially computed value of vested benefits for all plans has not been determined. The plan year for the pension funds ends December 31 and annual reports are issued on that basis. - 11 - #\AI AI PIl'J rl tUTllO. R. Ac:(.nrIA"n:c::. .[UTlt"u'"", DI1Ull. ....-rr\l th.JTA"'TC McALPIN, CURTIS & ASSOCIATES CERTIfiED PUBLIC ACCOUNTANTS IRA M. McALPIN, JR., C.P.A. LYMAN B. CURTIS, C.P.A. l. lEE THOMAS, CPA GERAlD A. DiBARTOLOMEO, JR., C.P.A. ROBERT W. SUMMERHAYS, JR., C.P.A. 111 ORANGE AVENUE P.O. BOX 3346 FORT PIERCE, FLORIDA 33450 (305) 461-6120 Honorable Mayor and City Council City of Okeechobee Okeechobee, Florida Our examination of the financial statements of the City of Okeechobee, Florida was made primarily for the purpose of formulating an opinion on the financial statements taken as a whole. The information presented on Pages 13 through 20 inclusive, although not considered necessary for a fair presentation of financial position, results of operations, and changes in financial position in conformity with generally accepted accounting principles, is presented for supplementary analysis purposes. This information has been subjected to the audit procedures applied in our examination of the financial statements and is, in our opinion, fairly stated in all material respects in relation to the basic finan- cial statements taken as a whole. 111~~/~oI'~~ McAlp~n, Curt~s & Assoc~ates Certified Public Accountants November 8, 1978 - 12 - r I I I McALPIN, CURTIS & ASSOCIATES CERTifiED PUBLIC ACCOUNTANTS IRA M. McALPIN, JR., C.P.A. lYMAN B. CURTIS, C.P.A. l. l~E THOMAS, C.P.A. GERALD A. DiBARTOLOMEO, JR., C.P.A. ROBERT W. SUMMERHAYS, JR., C.P.A. 111 ORANGE AV-ENUE P.O, BOX 3346 FORT PIERCE, FLORIDA 33450 (305) 461-6120 Honorable Mayor and City Council City of Okeechobee Okeechobee, Florida We have examined the financial statements of the various funds and account groups of the City of Okeechobee, Florida for the year ended September 30, 1978. Our examination was made in accordance with gen- erally accepted auditing standards and accordingly included such tests of the-accounting records and such other auditing procedures as we con- sidered necessary in the circumstances. I I The ordinance authorizing the issuance of the 1958 Water and Sewer Revenue Bonds requires that the audit contain an analysis regarding the adequacy of the acts of the City and its officers in carrying out the requirements of the resolution. Among the requirements of the ordinance are the following: (1) Money in the Sinking Fund in excess of the amount of interest and principal coming due in the ensuing twelve months may be invested in direct obligations or guaranteed securities of the United States of America. ~ I ~ ~ (2) Allor any part of the Depreciation Fund may be invested in direct obligations or guaranteed securities of the United States of America. The investments made from the Sinking Fund and Depreciation Fund during the year were in certificates of deposit in the Okeechobee County Bank and First Federal Savings and Loan Association of Okeechobee County. Nothing came to our attention that caused us to believe that any other requirements of the 1958 Water and Sewer Revenue Bond Ordinance were not complied with. However, it should be noted that our examination was not directed primarily toward obtaining knowledge of such non- compliance. f11c~,~-f~ McAlp~n, Curt~s & Assoc~ates Certified Public Accountants 1 \ November 8, 1978 - 13 - r -,.. CITY OF OKEECHOBEE, FLORIDA SCHEDULE OF GENERAL FUND REVENUES - BUDGET AND ACTUAL Year Ended September 30, 1978 Licenses and Permits Occupational licenses Building permits Competency cards Over (Under) Budget Actual Budget $149,000 $153,900 $ 4,900 75,000 87 , 7 58 12,758 80,000 92,458 12,458 304,000 334,116 30,116 18,500 17,974 (526 ) 3,500 4,276 776 3,500 3,125 (375) 25,500 25,375 (125) Taxes - Ad valorem taxes Franchise fees Utility service taxes Intergovernmental Revenues Federal grants LEAA funds Anti-recession funds State shared revenue Cigarette tax State revenue sharing Mobile home licenses Homestead Exemption Trust Fund Alcoholic beverage licenses Gasoline tax refund Total 5,432 5,432 80,000 25,863 (54,137) 60,000 60,439 439 176,000 176,007 7 1,800 1,492 (308) 3,672 3,672 1,163 1,163 1,300 1,150 . (150) 319,100 275,218 (43,882) 69,200 7,776 (61,424) 900 117 (783) 70,100 7,893 (62,207) 19,000 17,616 (1,384) 700 701 1 19,700 18,317 (1,383) 35,000 54,990 19,990 2,000 1,527 (473) 37,000 56,517 19 ,517 $775.400 $717 ,436 W7.964) Charges for Services Fire protection service Humane Department fees Fines and Forfeitures Court fines Police education Miscellaneous Interest earnings Other - 14 - ^'-ArAIO'....l rllOTIC g. A'C:.cnrIATI:C rr:OTII::u:n.DI,Dllr .ft.rrr'llllo.JT.l"-lTc: CITY OF OKEECHOBEE, FLORIDA SCHEDULE OF FUND REVENUES - BUDGET AND ACTUAL Year Ended September 30, 1978 Federal Revenue Sharing Funcl. Intergovernmental Revenue Federal revenue sharing proceeds Miscellaneous Interest earnings Total Debt Service Fund Taxes Ad valorem taxes Miscellaneous Interest earnings Total - 15 - Over (Under) Budget Actual Budget $101,000 $110,875 $ 9,875 3,000 5,640 2,640 Sl04.000 S116,5l5 $12,515 $ 38,157 $ 42,955 $ 4,798 5,600 $ 43,757 7,369 $ 50,324 1,769 $ 6.567 ..A_A.._h.r..____ _ A_____. ___ _ ,..... '" CITY OF OKEECHOBEE, FLORIDA SCHEDULE OF GENERAl.. FUND EXPENDITURES - BUDGET AND ACTUAL Year Ended September 30, 1978 General Government Legislative City Council salaries City Council expense Executive City Clerk's salary City Clerk's expense City Clerk's office expense City Cler~'s capital outlay Financial and Administrative Mayor's salary Deputy Clerks' salaries City Clerk's office - overtime Mayor's expense Mayor's office expense Audit fee Board of Adjustment fees Legal Counsel City Attorney's salary City Attorney's expense Attorney special fees Comprehensive Planning and Zoning Professional fees Other Other General Governmental Services Telephone and telegraph City Hall operation and maintenance New construction and additions Department of Public Works Secretary salary Department of Public Works office expense Termite control Election expense Donations Utilities Health insurance Disability insurance General insurance Payroll taxes Unemployment taxes City Clerk's retirement Pension plan payments Employee Christmas bonus - 16 - Budget $ 5,400 5,640 11 , 040 10,100 2,860 3,000 5,300 21,260 1,200 17,722 500 1,440 100 3,000 1,500 25,462 9,000 300 2,000 11 , 300 11,000 11 , 000 5,300 10,500 17 ,500 4,703 300 73 5,000 2,300 9,700 1,500 32,000 24,000 1,000 4,739 7,500 555 Actual $ 5,400 5,757 11,157 4,693 2,238 3,817 5,098 15,846 1,200 20,409 1,173 1,440 6 5,000 1,500 30,728 9,000 217 1,038 10,255 5,655 1,104 6,759 6,641 7,599 17,985 4,703 342 163 63 6,000 2,556 10,454 1,177 31,317 21,754 39 4,739 7,500 525 Over (Under) Budget $ 117 117 (5,407) (622) 817 (202) (5,414) 2,687 673 (94) 2,000 5,266 (83) (962) (1,045) (5,345) 1 , 104 (4,241) 1,341 (2,901) 485 42 90 63 1,000 256 754 (323) (683) (2,246) (961) (30) .. A,~ A . ~.., r. ............ .. A. .,..."'.-. ....-.-.. , '.n.....-...". n. ,nllr .oI.rrnllo..J'rIt.h.lT<;. ry ~l' I i i CITY OF OKEECHOBEE, FLORIDA SCHEDULE OF GENERAL FUND EXPENDITURES - BUDGET AND ACTUAL (CONTINUED) Year Ended September 30, 1978 Total - General Government Over (Under) Budget Actual Budget $ 500 $ $ (500) 2,500 2,500 619 619 127,170 126,676 i(~jJ~f ) 207,232 201,421 (5,811) General Government (Continued) Other General Governmental Services (Continued) Condemnation proceedings Consolidation study Other Public Safety _ Law Enforcement Salaries Overtime Incentive pay Education Investigation Operating expense Crime lab Connnunications Capital outlay Protective Inspections Building official salary Expense allowance Office expense 202,040 171,717 (30,323) 6,500 5,419 (1,081) 3,900 2,156 (1,744) 700 272 (428) 400 134 (266) 33,000 26,881 (6,119) 2,030 4,049 2,019 3,000 3,894 894 14,000 13,194 (806 ) 265,570 227,716 (37,854) 79,272 72,041 (7,231) 13,500 7,178 (6,322) 30,000 13,590 (16,l~1O) 20,000 4,038 (15,962) 25,000 25,000 167,772 121,847 (45,925) 11,826 11,826 2,080 2,087 7 450 224 (226 ) 14,356 14,137 (219) 200 (200) 447,898 363,700 (84,198) Fire Control Salaries Overtime Operating expense Capital outlay Hydrant demand charge Emergency and Disaster Relief Services Civil Defense Total - Public Safety Physical Environment Garbage/Solid Waste Control Services Refuse collection 12,000 12,150 150 Tre.nsporta tion Road and Street Facilities Salaries Overtime Operating expense Capi tal outlay Street lighting 65,610 48,885 (16,725) 2,500 2,185 (315) 29,000 27,806 (1,194) 2,000 (2,000) 34,100 34,586 486 133,210 113,462 (19,748) - 17 - r CITY OF OKEECHOBEE, FLORIDA SCHEDULE OF GENERAL FUND EXPENDITURES - BUDGET AND ACTU.J\L (CONTII\TUED) Year Ended September 30, 1978 Budget Human Services Health Humane Office salary Animal Pound expense $ 9,839 2,500 12,339 Contingencies 25,000 Actual $ 9,838 941 10,779 Over (Under) Budget $ (1) (1,559) (1,560) (25,000) Total - General Fund $837,679 $701,512 $(136,167) - 18 - CITY OF OKEECHOBEE, FLORIDA SCHEDULE OF FUND EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL Year Ended September 30, 1978 Federal Revenue Sharing Fuhd Transfers Transfers to Water and Sewer Fund Debt Service Fund Principal Retirement Interest Fiscal agent's. fee Total I I - 19 - . Budget $179.230 $ 15,000 29,775 300 $ 45,075 Actual S27.929 $15,000 29,775 300 S45.075 Over (Under) Budget S151. 301 $ S CITY OF OKEECHOBEE, FLORIDA WATER AND Sffi-lER FUND SCHEDULE OF CHANGES IN RESERVE ACCOUNTS Year Ended September 30, 1978 Total Balance - October 1, 1977 $103,893 Additions From Operating Fund: Bond principal requirements Bond i~terest requirements Interest earned on investments Total Additions 20,000 28,316 5,954 54,270 Deductions Payments for: Bond principal Bond interest Transfer to Revenue Fund Total Deductions 19,000 28,635 3,666 51,301 S106,862 Balance - September 30, 1978 ] I - 20 - Bond Reserve and Retirement Fund Current Maximum Maturities Reserve $26,039 20,000 28,316 48,316 19,000 28,635 47,635 S26,720 $48,375 3,509 3,509 3,509 3,509 S48.375 Depreciation Fund $29,479 2,445 2,445 157 157 S31. 767 CITY OF OKEECHOBEE. FLORIDA SCHEDULE OF GENERAL OBLIGATION BONDED DEBT AND INTEREST TO MATURITY September 30, 1978 Principal Interest Total Principal and Interest Payments Due for Year Ended September 30 1979 $ 15,000 $ 28,650 $ 43,650 1980 15,000 27,525 42,525 1981 15,000 26,400 41,400 1982 15,000 25,275 40,275 1983 15,000 24,150 39,150 1984 20,000 23,138 43,138 1985 20,000 21,788 41 , 788 -1986 20,000 20,437 40,437 1987 20,000 19,087 39,087 1988 25,000 17,738 42,738 1989 25,000 16,050 41,050 1990 25,000 14,363 39,363 1991 25,000 12,675 37,675 1992 30,000 10,956 40,956 1993 30,000 8,894 38,894 1994 30,000 6,831 36,831 1995 35,000 4,769 39,769 1996 35,000 2,362 37,362 Total $415,000 $311 , 088 $726,088 Bonds maturing ~-1996 are redeemable at the option of the City on any interest date by payment of a premium of 3% between 1982-86; 2% between 1986-91 and 1% after July 1, 1991. Interest is payable at 7.5% on bonds maturing tllrough 1982; at 6.75% for bonds maturing 1983 through 1990; at 6.875% for bonds maturing 1991 through 1995, and at 6.75% for bonds maturing in 1996. - 21 - r I CITY OF OKEECHOBEE, FLORIDA SCHEDULE OF 1958 HATER AND SEWER REVENUE BONDS AND INTEREST TO MATURITY September 30, 1978 J)! u Principal and Interest Payments Due for Year Ended September 30 1979 $ 16,000' $ 8,460 $ 24,460 1980 17,000 .,. 7,740 24,740 1981 18 , 000 ... 6, 975 24, 975 1982 18,000 6,165 24,165 1983 19,000 5,355 24,355 1984 20,000 4,500 24,500 1985 21,000 3,600 24,600 1986 22,000 2,655 24,655 1987 23,000 1,665 24,665 1988 14,000 630 14,630 Total .$l88.000 $47.745 $235 , 7.!t.2 Principal Interest Total The bonds bear interest at the rate of 4-1/2% and are secured by the net revenues of the Water and Sewer System and the utility taxes. The bonds are redeemable 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%. - 22 - r I I ~..~- - CITY OF OKEEC1l0BEE, FLORIDA SCHEDULE OF 1972 WATER AND SE'iIER REVENUE BOl\TDS AND INTEREST TO MATURITY September 30, 1978 Principal and Interest Payments Due for Year Ended September 30 1979 $ 5,000 $ 19,300 24,300 1980 _? , 000 19,050 1.4,050 1981 .2,000 18,800 23,800 1982 5,000 18 ,5.50 23,550 1983 6,000 18,300 24,300 1984 6,000 18,000 24,000 1985 6,000 17,700 23,700 1986 6,000 17,400 23,400 1987 7,000 17,100 24,100 1988 7,000 16,750 23,750 1989 7,000 16,400 23,400 1990 8,000 16,050 24,050 1991 8,000 15,650 23,650 1992 9,000 15,250 24,250 1993 9,000 14,800 23,800 1994 10,000 14,350 24,350 1995 10,000 13,850 23,850 1996 11 , 000 13,350 24,350 1997 11,000 12,800 23,800 1998 12,000 12,250 24,250 1999 12,000 11 , 650 23,650 2000 13 , 000 11,050 24,050 2001 13 , 000 10,400 23,400 2002 14,000 9,750 23,750 2003 14 , 000 9,050 23,050 2004 15,000 8,350 23,350 2005 15,000 7,600 22,600 2006 16,000 6,850 22,850 2007 17,000 6,050 23,050 2008 18,000 5,200 23,200 2009 19,000 4,300 23,300 2010 21,000 3,350 24,350 2011 22,000 2,300 24,300 2012 24,000 1,200 25,2.00 Total $386,000 ~422.800 g808.800 Principal Interest Total The bonds bear interest at the rate of 5% and 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. The bonds are redeemable in ,mole or in part in inverse order on any interest payment date at par and accrued interest. - 23 - CITY OF OKEECHOBEE, FLORIDA SCHEDULE OF INSURANCE COVERAGE September 30, 1978 Description Coverage Fire and Extended Coverage City Hall (80% Co-Insurance) Water Department buildings 100,000 77,000 Comprehensive General Liability Bodily injury Property damage Medical payments Personal injury liability 300,000 50,000 500/10,000 300,000 Law Enforcement Liability Bodily injury, personal injury, property damage First Aid Punitive damages 150/300,000 5/25,000 5/25,000 Workmen's Compensation and Employer's Liability Statutory Rates Vehicular Equipment Bodily injury Property damage Collision ($100 deductible) Comprehensive ($50 deductible) 100/300,000 50,000 ACV ACV Scheduled Property Floater ($100 deductible) ACV Public Officials Bonds City Clerk Other employees 15,000 15,000 Police and Full-Time Firemen Accidental death 20,000 Volunteer Firemen Accidental death Medical payments Weekly indemnity 10,000 2,500 100 - 24 - I r I ~ CITY OF OKEECHOBEE, FLORIDA SCtillDULE OF ASSESSED VALUES TAX LEVIES AND RATES - LAST TEN YEARS Real Personal Homestead Year Property Property. Total Exemp tion 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 1975 23,630,191 5,987,420 29,617,611 4,479,230 1974 22,237,112 4,668,340 26,905,452 4,336,100 1973 21,760,494 3,153,530 24,914,024 3,680,710 1972 12,295,670 3,031,848 15,327,518 3,223,765 1971 11,119,065 2,299,576 13,418,641 3,030,375 1970 10,612,610 2,279,271 12,891,881 2,868,200 1969 10,276,593 2,120,593 12,397,186 2,680,735 Tax Levy and Applicable Rates Levies Rates Debt General Debt General Service Government Year Service Government Mills Mills , ~, ," 1978 $41,852 $168,054 .88 3.94 ,. ,v 1977 43,989 157,519 1.11 4.51 -", " 1976 35,090 145,732 1.11 4.61 1975 37,848 135, 945 1.11 4.59 1974 51,542 123,475 1.65 4.59 1973 47,181 112, 113 1.65 4.50 1972 55,653 107,292 3.00 7.00 1971 49,347 80,511 3.00 6.00 1970 31,520 77,351 2.00 6.00 1969 29,868 61,268 2.00 5.00 - 25 - r-' CITY OF OKEECHOBEE, FLORIDA SCHEDULE OF REVENUES AND UTILITY CUSTOMERS LAST TEN YEARS Revenues - Other State Revenue Year Sharing Occupational Utili ty Fines and Franchise (Note 2) (Note 3) Licenses Taxes Forfeitures Fee 1978 $243,923 $17,974 $92,458 $18,317 $ 87;758 1977 235,839 18,783 82,858 24,817 72,821 1976 243,536 17,491 80,779 46,477 54,324 1975 237,607 15,725 68,100 42,202 103,703 1974 210,969 20,106 69,560 52,964 37,330 1973 188,309 4 , 758 32,953 1972 211 ,865 24,944 23,529 29,189 1971 159,956 10,220 33,315 23,663 1970 137 ,369 8,446 27,346 21,012 1969 116,597 7,605 31,670 19,167 Water and Sewer System Revenues Sewer Service Water De linquent Charges Billings Charges Miscellaneous 1978 $59,724 $436,451 $ 9,140 $ 3,658 1977 59,506 413,666 10,220 2,838 1976 49,867 357,349 7,404 47,046 1975 33,034 249,405 6,514 3,266 1974 35,181 244,293 6,430 '2,988 1973 24,658 168,080 3,412 1,139 1972 30,922 185,747 3,820 2,585 1971 23,659 133,019 367 1,762 1970 21,868 115,438 164 690 1969 22,152 105,889 177 101 Water Water Water Total Meters in Meters Meters Non- Water Unmetered Sewer Operation Cut Off Operative Meters Customers Connections 1978 2,612 236 19 2,867 428 1977 2,454 281 6 2,741 10 424 1976 2,394 268 1 2,663 29 423 1975 2,353 234 11 2,598 410 1974 2,228 267 1 2,496 392 1973 2,219 177 2,396 376 1972 1,854 159 2,013 370 1971 1,669 160 1,829 9 352 1970 1,513 107 1,620 21 313 1969 1,440 85 8 1,533 24 309 - 26 - McALPIN CURIIS & ASSOCIATES, CERTifiED PUBLIC ACCOl Fire Department Anti-Recession Permits Interest Payment Fund Miscellaneous $7~401 $54,990 $ 7,776 $25,863 $ 7,076 8,349 49,860 35,000 51,084 16,662 9,065 43,099 15,000 3,737 8,530 31 , 801 15,000 6,456 10,694 20 ~ 912 13,750 4,653 6,185 9,691 12,500 4, 908 6,496 13,331 11 , 000 2,355 6,240 8,330 1,945 3,019 8,331 1,757 1,285 4,581 1,916 Connection Charges Interest on (In Aid of Hydrant Utility Invesbnents Construction) Rental T axe s $30,961 $19,975 $25,000 18,225 13,660 25,000 14,289 10,965 25,000 13,056 9,400 25,000 12,073 13,467 25,000 7 ,975 12,685 $44,878 12,639 19,135 52,415 7,639 7,535 45,976 7,639 4,015 42,733 4,139 2,050 38,610 Note 1 Amounts for years prior to 1974 have been reclassified to correspond with subsequent years. Note 2 - Amounts reported for 1974 and subsequent are for the twelve months ended September 30. Amounts reported for 1973 are for the nine months ended September 30. Amounts reported for 1972 and prior are for the twelve months ended December 31. Note 3 - Includes additional two-cent cigarette tax.