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Audit Report 09.30.1977 r -- ". CITY OF OKEECHOBEE. FLORIDA FINANCIAL STATEMENTS September 30, 1977 and 1976 McALPIN CURTIS & AS:'OClATES, CERTIFIED PUBLIC ACCOUNTANTS CITY OF OKEECHOBEE, FLORIDA CITY OFFICIALS - II I - September 30, 1977 ~;OR - COUNCIL Mayor Aud1ey Dunham Council - President Russell V. Domer Council - Vice-President Edward W. Douglas Councilman Lavon Bass Councilman Lytle Raulerson I . - I - I I - I - . ~ - I I Councilman J. H. Knight ADMINISTRATIVE City Clerk Sandra Bennett City Attorney David Conlon Superintendent - Water and Sewer Department L. C. Fortner, Jr. Acting Chief of Police Larry Mobley Chief of Fire Department Olen Godwin Building Inspector Richard B. Spray McALPIN CURTI"'!I.. Ac;s,nrIATI=<;, rJ:g.T1j;I~n PflAllr ArrnllJr\JT.Uun. r I I I I I I I I I I I I I I I I I I I I I I 'I CITY OF OKEECHOBEE, FLORIDA FINANCIAL STATEMENTS September 30, 1977 and 1976 TABLE OF CONTENTS ~'. Page Accountants' Report 1 General Fund: Balance Sheets Statements of Revenues, Expenditures and Changes in Fund Balance 2 3 Federal Revenue Sharing Trust Fund: Balance Sheets Statements of Revenues, Transfers and Changes in Fund Balance 4 5 Debt Service Fund: Balance Sheets Statements of Revenues, Expenditures and Changes in Fund Balance 6 7 Statements of General Long-Term Debt 8 Statements of General Fixed Assets 9 Water and Sewer Fund: Balance Sheets Statements of Changes in Retained Earnings Statements of Revenues and Expenses Statements of Changes in Financial Position 10 11 12 13 Notes to Financial Statements 14 Statement to Bondholders 17 Other Financial Information: Accountants' Report on Other Financial Information Schedule of General Fund Expenditures Compared wi th Budget Schedule of Changes in Reserve Accounts Schedule of Changes in General Fixed Assets Schedule of General Bonded Debt and Interest to Maturity Schedule of 1958 Water and Sewer Revenue Bonds and Interest to Maturity Schedule of 1972 Water and Sewer Revenue Bonds and Interest to Maturity Schedule of Inter-Fund Accounts Schedule of Insurance Coverage Statistical Tables 18 19 21 22 23 24 25 26 27 28 McALPI.'1 CURTIS & ASSOCIATES, CERTIFIED PUBLIC ACCOUNTMHS r I I I I I I , I I I I I I I I I I I I I I I .,. 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 A. DiBARTOLOMEO, JR., C.P.A. ROBERT W. SUMMER HAYS, 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 for the years ended September 30, 1977 and 1976 listed in the foregoing Table of Contents. Our examinations were 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 controls 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 of the City of Okeechobee, Florida at September 30, 1977 and 1976 and the results of their operation for the years then ended in conformity with generally accepted accounting principles applied on a consistent basis. 1J1,,~~.~r~~ McAlp~ , Curt~s & Associates Certified Public Accountants November 4, 1977 - 1 - r ~ CITY OF OKEECHOBEE. FLORIDA GENERAL FUND BALANCE SHEETS September 30, 1977 and 1976 ~. 'ASSETS TOTAL ASSETS 1977 1976 $ 88,452 $ 52,166 834,500 775,000 29,971 59,971 1,915 1,366 34,996 34,996 2,768 2,768 (37 ,764) (37,764) $954.838 $888,503 Cash Certificates of Deposit Due from Water and Sewer Fund Inventory - motor fuels Taxes receivable Delinquent street and sewer liens Less estimated uncollectible taxes and liens LIABILITIES AND FUND BALANCE Liabil i ties Accounts payable Employee payroll deductions Due to Debt Service Fund Total Liabilities TOTAL LIABILITIES AND FUND BALANCE $ 5,750 $ 13, 755 4,032 2,541 135 l35 $ 9,917 $ 16,431 944,921 872,072 $954,838 $888,503 Fund Balance Unappropriated See Notes to Financial Statements. - 2 - McALPIN CUR flS & ASSOCIATES, CERTIFIED PUBliC ACCOl"'or ~NIS - CITY OF OKEECHOBEE, FLORIDA GENERAL FUND STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Years Ended September 30, 1977 and 1976 .... 1977 1976 Actual Budget Actual Revenues Property taxes $140,645 $141,442 $140,584 State revenue sharing 176,013 176,000 190,687 Additional cigarette tax 59,826 47,000 52,849 Occupational licenses 18,783 16,850 17 ,492 Utility taxes 82,858 80,000 80, 77 9 Fines and forfeitures 24, 817 50,000 46,478 Fire Department payment - Okeechobee County 35,000 20,000 15,000 LEAA support funds 8,874 l3,034 -0- Franchise fee 72,82l 58,000 54,324 Building permits 4,799 3,500 5,116 Competency cards 3,550 3,000 3,950 Mobile home license fees 2,358 2,500 2,592 Motor fuel tax refund 1,l57 1,400 -0- Anti-recession funds 5l,084 -0- -0- Humane Department fees l,370 200 593 Interest 49,860 30,000 43,099 Miscellaneous 2,903 2,000 552 Total Revenues $736,718 $644,926 $654,095 Expenditures General government $ 83,785 $ 89,150 $ 75,117 Public safety 336,908 346,651 271,394 Public works 120,953 139,975 114, 127 Health and welfare 10,82l 11,110 9,203 Miscellaneous ll1 ,402 110,265 80 ,496 Total Expenditures $663,869 $697,15l $550,337 Excess of Revenues $ 72,849 $(52,225) $103,758 Fund Balance - Beginning of Year 872,072 768,3l4 Fund Balance - End of Year $944.921 $872.072 See Notes to Financial Statements. - 3 - McALPIN CUR [IS I'. ASSOCIATES. CERTIFIED PUBLIC ACCOUNTANTS r I I I I I I I I I Cash Certificate of Deposit Liabilities Fund Balance CITY OF OKEECHOBEE, FLORIDA FEDERAL REVENUE SHARING TRUST FUND September BALANCE SHEETS 30, 1977 and 1976 ~'. ASSETS TOTAL ASSET,S LIAB ILITIES AND FUND BALANCE See Notes to Financial Statements. TOTAL LIABILITIES AND FUND BALANCE - 4 - 1977 $ 75,335 -0- $ 75,335 $ -0- 75,335 $ 75.335 - 1976 $ 2,751 285,560 $288,311 $ -0- 288,311 $288~311 McALPIN CURTIS & ASSOCIA ns, CtRTlFIED PUBliC ACCOUNTANTS ..... CITY OF OKEECHOBEE. FLORIDA FEDERAL REVENUE SHARING TRUST FUND STATEMENTS OF REVENUES. TRANSFERS AND CHANGES IN FUND BALANCE Years Ended September 30, 1977 and 1976 ~. 1977 1976 Revenues Federal Revenue Sharing $ 100,86l $106,675 Interest income 10 , 979 10,694 Total Revenues $ 111,840 $117,369 Transfers Water and Sewer Fund 324,816 -0- Excess of Revenues (Transfers) $(212,976) $117,369 Fund Balance - Beginning of Yea~ 288 , 311 l70,942 Fund Balance - End of Year $ 75.335 $288.311 See Notes to Financial Statements. - 5 - McALPIN CURTIS & ASSOCIATES. CERTIFIW PUBliC ~.CCOl:~T^Nrs Cash Certificate of Deposit Accrued interest receivable Due from General Fund CITY OF OKEE CHO BEE , FLORIDA DEBT SERVICE FUND BALANCE SHEETS September 30, 1977 and 1976 ASSETS ... TOTAL ASSETS 1977 1976 $ 7 , 115 $ 4,444 100,330 100,330 287 -0- 135 135 $107.867 $104,909 LIABILITIES AND FUND BALANCE Liabilities Matured bonds and coupons outstanding Fund Balance $ 2,012 $ 2,012 105,855 $l07.867 102,897 $104.909 TOTAL LIABILITIES AND FUND BALANCE See Notes to Financial Statements. - 6 - McALPIN CURTIS & AssoCi A TES, CERTlFIHl PUBLIC ACCOUNTANTS CITY OF OKEECHOBEE, FLORIDA DEBT SERVICE FUND STATEMENTS OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE Years Ended September 30, 1977 and 1976 ~. 1977 1976 Revenues to,,':. Taxes collected $ 38,159 $ 38,762 Interest income 5,624 6,120 Total Revenues $ 43,783 $ 44,882 Expenditures Bonds retired $ 10,000 $ 10,000 Interest on bonds 30,525 31,275 Fiscal agent's fee 300 300 Total Expenditures $ 40,825 $ 41,575 Excess of Revenues $ 2,958 $ 3,307 Fund Balance - Beginning of Year 102,897 99,590 Fund Balance - End of Year $105.855 $102.897 See Notes to Financial Statements. - 7 - McALPIN CURTIS & ASSOCIATES, CERTlFlfO PUBLIC ACCOUNTANTS r - CITY OF OKEECHOBEE, FLORIDA STATEMENTS OF GENERAL LONG-TERM DEBT September 30. 1977 and 1976 I I I I I I I I I I I t I I I J I t I 1977 Amounts Available And To Be Provided For The Payment of General ~onde~~ebt Refunding Bonds of 1971: . Amount available in Debt Service Fund Amount to be provided $105,855 665,007 $770.862 Total Available And To Be Provided General Bonded Debt Refunding Bonds of 1971: Principal amount Interest to maturity $430,000 340,862 $770.862 Total General Bonded Debt See Notes to Financial Statements. - 8 - McALPIN CURTIS & ASSOCIA'i'ES. CERTIFIED PUBLIC ACCOUNTANTS 1976 $l02,897 708,491 $811.388 $440,000 371,388 $811.388 I I 1111ll1.lIlmmm~IIII"~. Land and improvements Buildings and improvements Furnishings and equipment Rolling stock Total General Fixed Assets CITY OF OKEECHOBEE, . nOR IDA STATEMENTS OF GENERAL FIXED ASSETS September 30, 1977 and 1976 1977 ... $111,937 97,233 98,317 161,983 $469.470 See Notes to Financial Statements. - 9 - - ,..,.. 1976 $111,937 89,168 70,205 157 ,697 $429.007 McALPIN CURTIS & ASSOCI^ TES. CERTIFIW PUBLIC ^CCQUNT^NTS '.....- ~ CITY OF OKEECHOBEE,- FLORIDA WATER AND SEWER FUND BALANCE SHEETS September 30, 1977 and 1976 ASSETS ... 1977 1976 Current Assets Cash $ 91,407 $ 90,234 Certificates of Deposit 278,381 169,594 Accounts receivable (Note 2) 177 ,975 92,767 Less allowance for uncollectible accounts (3,943) (3 , 94 3 ) Accrued interest receivable 583 2,107 Due from Revenue Bond Reserve and Retirement Fund 170 255 Total Current Assets $ 544,573 $ 351,014 Restricted Assets Revenue Bond Reserve and Retirement Fund (Note 3) Cash Certificates of Deposit Revenue Bond Depreciation Fund Investments Total Restricted Assets $ 27,308 48,400 27,367 $ 103,075 Utility Plant Plant, property and equipment Less accumulated depreciation Net Utility Plant $2,508,l6l (565,204) $1,942,957 $2,076,64l (502,500) $1,574,14l TOTAL ASSETS $ 2 ,592 , 087 $2,028.230 See Notes to Financial Statements - 10 - McALPIN CURTIS & ASSOCIATES, CERTIFiED PUBLIC ^CCOUNT^NTS I ... '\..~ LIABILITIES, RESERVES , CONTRIBUTIONS AND RETAINED EARNINGS Current Liabilities Accounts payable Accrued payroll deductions Due to General Fund Contract payable Current portion of long-term debt Water deposits Escrow deposit Current Liabilities (Payable From Restricted Assets) Matured interest coupons Due to Revenue Fund Total Current Liabilities Long-Term Debt (Note 5) Revenue Bonds - Series 1958 Revenue Bond - Series 1972 Contracts payable Less current portion Total Long-Term Debt Reserves Revenue Bond Reserve and Retirement Fund Depreciation Fund Required maximum balance Excess of maximum balance Total Reserves Contributions (Note 6) Retained Earnings TOTAL LIABILITIES, RESERVES, CONTRIBUTIONS AND RETAINED EARNINGS 1977 $ 6,126 1,656 29,971 35,539 6,274 64,970-- 870 $ 145,874 $ 495 170 $ 665 $ 146,539 $ 203,000 390,000 21,852 $ 6l4,852 (6,742) $ 608,110 $ 74,414 25,000 4,479 $ l03,893 873,212 860,333 $2,592.087 1976 $ 5,945 1,251 59, 971 -0- 9,630 60,195 870 $ 137,862 $ 720 255 $ 975 $ 138,837 $ 218,000 394,000 32,287 $ 644 , 287 (9,630) $ 634,657 $ 74,733 25,000 2,367 $ 102,100 392,640 759,996 $2,028.230 . McALPIN CURTIS & ASSOCIATES. CERTIfiED PUBLIC ACCOUNTANTS CITY OF OKEECHOBEE. FLORIDA WATER AND SEWER FUND STATEMENTS OF CHANGES IN RETAINED EARNINGS Years Ended September 30, 1977 and 1976 ... . Balance - Beginning of Year Additions (Deductions) Net income Change in debt service requirements Interest earned and retained in Depreciation Fund Balance - End of Year See Notes to Financial Statements. - 11 - - 1977 1976 $759,996 $607,835 102,130 157,221 319 (3,110) (2.112) (1,950) $860.333 $759,996 McALPIN CURTIS & ASSOCIATES. CERTIfIED PUBliC ACCOUNTANTS r I I I I I I I I I I I I I I CITY OF OKEECHOBEE, FLORIDA WATER AND SEWER FUND STATEMENTS OF REVENUES AND EXPENSES Years Ended September 30, 1977 and 1976 Revenues Water sales Sewer charges Hydrant rental Penalties and delinquent Interest on investments Miscellaneous (Note 2) Total Revenues ~. ~....,,: fees Operating Expenses Salaries and wages Payro 11 taxes Group insurance Chemicals Materials and supplies Truck expense Electricity General insurance Repairs Office expense Professional fees Provision for uncollectible accounts Pension Plan contributions Miscellaneous Telephone Total Operating Expenses Net Operating Income Other Deductions Depreciation Interest - revenue bonds Interest - contracts Total Other Deductions Net Income See Notes to Financial Statements. - l2 - - 1977 1976 $413,666 $357,349 59,506 49,867 25,000 25,000 10,220 7,405 18,225 14,289 2,838 47,046 $529,455 $500,956 $147,972 $127,321 8,575 8,565 4,855 3,658 50,852 40,999 14,272 14,827 4,933 4,515 37)322 28,063 l6,573 7,441 31,439 2,10l 6,353 6,008 2,500 3,047 -0- 2,890 2,405 1 ,750 4,928 7,787 1,635 1,543 $334,614 $260,515 $194,84l $240,441 $ 62,704 $ 51, 916 29,510 30,241 497 1,063 $ 92 , 711 $ 83,220 $102,130 ~157L~2l McALPIN CUR liS & ASSOCIA TES, CERflflED PUilllC ACCOUNTANTS CITY OF OKEECHOBEE, FLORIDA WATER AND SEWER FUND STATEMENTS OF CHANGES IN FINANCIAL POSITION Years Ended September 30, 1977 and 1976 Sources of Working Capital Net income Expense not requiring outlay of working capital - depreciation Contributions Decrease in restricted assets Total Sources of Working Capital ... , $,"-~ Uses of Working Capital Additions to Utility Plant Decrease in liabilities payable from restricted-assets Increase in restricted assets Payments on long-term debt Total Uses of Working Capital Increase in Working Capital Increase in Working Capital Consists of Increase (Decrease) in Current Assets Cash Certificates of Deposit Accounts receivable Accrued interest receivable Due from other funds Increase (Decrease) in Current Liabilities Accounts payable Accrued payroll deductions Accrued interest on contracts Contracts payable Due to general funds Current portion of long-term debt Water deposits Escrow deposit Increase in Working Capital See Notes to Financial Statements. - 13 - 1977 1976 $102,130 $157,22l 62,704 51,916 480,572 29,382 -0- 58.145 $645,406 $296,664 $431,520 $130,219 310 43,584 1,482 -0- 26,547 26,996 $459.859 $200,799 $185.547 $ 95,865 $ 1,173 $ 12,138 108,787 5,959 85,208 70,867 (1,524) 800 (85) 46 $193,559 $ 89,810 $ 181 405 -0- 35,539 (30,000) (2,888) 4,775 -0- $ 8,012 -- $ (l,352) 259 (351) -0- -0- (8,610) 3,129 870 $ (6,055) $185,547 $ 95.865 McAI.PIN CURTIS & ASSOCl^TES. CERTIfiED PlJ811C ^CCOU"T^~TS r ~ CITY OF OKEECHOBEE, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 1977 and 1976 Note 1 - Significant Accounting Policies Bases of Accounting - The accrual basis of accounting is followed for the Water and Sewer Fund. All other funds use the modified accrual basis. A summary of the modi- fications to the accrual basi~'fol~~: 1. Revenues are recorded as received in cash except for: (a) Revenues susceptible to accrual and (b) Material amounts of revenue not received at normal time of receipt. 2. Expenditures are recorded on an accrual basis. Investments - Investments are stated at cost. General Fixed Assets - General Fund at the time of purchase. fixed asset group of accounts. assets. fixed assets are recorded ~s expenditures in the General Such assets are capitalized at cost in the general No depreciation has been provided on the general fixed Utility Plant - Additions to Utility Plant are stated at cost. Depreciation was computed on a composite annual rate of 2-1/2%. Note 2 - Accounts Receivable The Okeechobee Beach Water Association has agreed to contribute $200,000 to assist in the financing of certain improvements and extensions to the water system. At Septem- ber 30, 1977~ the Association's share of the cost of contract work completed was $142,156. Accounts receivable at September 30, 1976 include $51,156 representing overpayments to Florida Power and Light Company during the period October 18, 1973 to August 13, 1976. The overpayments of $34,843, applying to the period prior to October 1, 1975, were included in miscellaneous revenues on the financial statements for the year ended September 30, 1976. Note 3 - Revenue Bond Reserve and Retirement Funds The 1958 Revenue Bond Ordinance requires, among other things, monthly deposits equal to one-sixth of the next interest requirement and one-twelfth of the next bond princi- pal requirement. In addition, a reserve equal to the largest annual bond principal and interest payment is to be maintained. At September 30, 1977 and 1976, the amounts required and the amounts on deposit in the 1958 Revenue Bond Sinking Fund are as follows: Cash Balance - September 30 1977 1976 $ 495 $ 720 2,284 2,452 3,750 3,750 24,975 24 , 975 $31,504 $31,897 125 125 $31,629 $32,022 Matured interest coupons 50% of next interest requirement 25% of next bond principal requirement Maximum reserve (bond principal and interest due 1981) Reserve Balance - September 30 Due to Revenue Fund - 14 - McALPIN CURTIS & ASSOCIAl [S. CERTIFIED PUBUC ACCOUNTANTS r I I I I I I I I I I I I I I I I I I I I I I ~ CITY OF OKEECHOBEE, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 1977 and 1976 Note 3 - Revenue Bond Reserve and Retirement Funds (Continued) The 1972 Revenue Bond Ordinance, re~uires, among other things, monthly deposits equal to one-twelfth of the next annual bond principal and interest payment. The ordinance also requires that a reserve account of $23,400 be maintained in the Sinking Fund. At September 30, 1977 and 1976, the amounts required and the amounts on deposit in the 1972 Revenue Bond Sinking Fund are as follows: Cash Balance - September 30 1977 1976 $17,625 $17,775 23,400 23,400 2,380 2,380 $43,405 $43,555 45 130 $43,450 $43,685 75% of next annual bond and interest requirement Maximum reserve Balance of construction funds required to be deposited in Sinking Fund Reserve Balance - September 30 Due to Revenue Fund Note 4 - Depreciation Fund The 1958 Revenue Bond Ordinance requires that a Depreciation Fund of $25,000 be main- tained. The Fund may be used, with approval of the City Council, to pay for capital additions or unforeseen emergencies. At September 30, 1977, the Fund was $4,479 (1976 - $2,367) in excess of requirements. Note 5 - Long-Term Debt Details concerning the 1958 and 1972 Water and Sewer Revenue Bonds are shown on Pages 24 and 25 of this report. Contracts payable consist of the following: 1. The contract with the Okeechobee County Board of Education is being paid by applying fifty percent of the water charges to the indebted- ness. The balance of the contract was $17,805 at September 30, 1977 (1976 - $20;500). 2. The balance due on the Ernest Evans contract for the Wilcox Shores and Okeechobee Estates extention was $4,047 at September 30, 1977 (1976 - $11,786). The required monthly payment is $686, which includes interest at 6%. Note 6 - Contributions The Water and Sewer Fund was established as an enterprise fund on the records of the City in 1958. Contributions in aid of construction since that date are shmvn as follows: - l5 - McALPIN CURTIS & ASSOCIATES. URTlfIED PuBLIC ACCOliNTANiS ~ - - ~ . . CITY OF OKEECHOBEE. FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 1977 and 1976 Note 6 - Contributions (Continued) Source B"alance September 30', '1.975 $ 99,838 3,863 71,160 100,000 Contributions Year Ended September 30 1977 1976 Balance September 30, 1977 $l24,403 22,280 71,160 100,000 $ 13,600 $10,965 18,417 Connection fees Developers Federal grant General Fund Federal Revenue Sharing Funds Okeechobee Beach Water Association 88,397 324,816 413,213 142,156 ~873.212 142,156 ~~ $29.382 Total $363.258 In prior years, contributions in aid of construction were reported as part of retained earnings. On the balance sheet at September 30, 1976 and the statement of retained earnings for the year ended September 30, 1976, the amounts have been restated to show the contributions as a separate account. Note 7 - Pensions The City has three pension plans, which cover substantially all employees except the City Council and Mayor. The total pension expense for the year 1977 was $7,156 (l976 - $5,632). 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. - 16 - McALPIN CURTIS & ASSOCl^TES. CERTIFIED PUBliC ^CCOUNT^NTS --. I I [ I I I I I l 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 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 We have examined the financial statements of the City of Okeechobee, Florida for the year ended September 30, 1977 and have issued our report thereon under date of November 4, 1977. 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. (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. We obtained no knowledge that any other requirements of the 1958 Water and Sewer Revenue Bond ordinance were not complied with. ??t:~(CuJM ~~ Mc~lp~n, Curt~s & Assoc~ates Certified Public Accountants November 4, 1977 - l7 - 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 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 hereinafter, 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 financial statements taken as a whole. !Jtc~,~~~ McAlp~n, Curt~s & Assoc~ates Certified Public Accountants November 4, 1977 - 18 - CITY OF OKEECHOBEE. FLORIDA GENERAL FUND SCHEDULE OF EXPENDITURES COMPARED WITH BUDGET Year Ended September 30, 1977 Public Safety Police Department salaries Police incentive pay Police Department - walkie-talkies Police Department expense Police Department investigation Indian River College Crime Lab Police Department equipment and vehicles Communications expense Fire Department salaries Fire Department expense Fire hydrant demand charge Building official's salary Building official's expense allowance Building official's office expense Civil Defense $154,444 1,960 l5,059 27,337 48 1,078 11,858 2,337 57,226 26,814 25,000 11,161 2,040 546 -0- $336,908 Public Works Director of Public Works secretary salary Director of Public Works expense and equipment Street Department salaries $ 4,439 2,354 47,055 - 19 - $165,000 2,700 13,720 32,000 400 2,156 6,500 l,500 56,465 27,500 25,000 10,950 2,080 480 200 $346,651 $ 4,355 300 58,620 McALPIN CURTIS & ASSOCIATES, CERTIFIED PUBLIC ACCOUNTANTS r --". CITY OF OKEECHOBEE, FLORIDA GENERAL FUND SCHEDULE OF EXPENDITURES COMPARED WITH BUDGET (CONTINUED) Year Ended September 30, 1977 ~. Actual Budget $ 24, 627 $ 35,000 610 700 -0- 2,000 13,330 12,000 28,538 27 ,000 $120,953 $139,975 $ 9,440 $ 9, 110 1,381 2,000 $ lO,82l $ 11,110 $ 134 $ 400 4,000 4,000 2,142 1,700 8,562 9,100 1,398 1,250 34,336 22,000 19,608 20,000 23 1,300 4,830 4,739 4,751 4,751 525 525 22,829 15,000 -0- 500 8,264 25,000 $111,402 $110,265 $663.869 $697_151 Public Works (Continued) Street Department expense Termite control Street Department equipment Refuse collection Street lighting and electricity Health and Welfare Humane officer's salary Animal Pound expense Miscellaneous Election expense Donations Utilities Health insurance Disability insurance General insurance Payroll taxes Unemployment taxes City Clerk's retirement Pension Plan payments Employees' Christmas bonus Overtime Condemnation proceedings Contingencies Total - 20 - McALPIN CURTIS & ASSOCIATES. CERTIFIED PUBLIC ACCOUNTANTS r Ii i CITY OF OKEECHOBEE, FLORIDA WATER AND SEWER FUND SCHEDULE OF CHANGES IN RESERVE ACCOUNTS Year Ended September 30, 1977 ", Total Bond Reserve and Retirement Fund Current Maximum Depreciation Maturities Reserve Fund Balance - October l, 1976 $102,100 $26,358 $48,375 $27,367 Additions From Operating Fund: Bond principal requirements Bond interest requirements Interest earned on investments Total Additions $ 19,000 29,191 5 , 977 $ 54,l68 $19,0.00 29,191 $48,191 $ 3,509 $ 3,509 $ 2,468 $ 2,468 Deductions paymen ts for: Bond principal Bond interest Transfer to Revenue Fund Total Deductions $ 19,000 $19,000 29,510 29,510 3,865 $ 3,509 $ 356 $ 52,375 $48,510 $ 3,509 $ 356 $103.893 $26,039 $48.375 $29.479 Balance - September 30, 1977 - 2l - r I! Ii Ii i CITY OF OKEECHOBEE, FLORIDA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS Year Ended September 30, 1977 Balance Balance September Net September t., 30, 1976 Additions 30, 1977 Land and Improvements Real estate - lot adjoining City Hall $ 6,000 $ 6,000 Lot - elevated tank 2,000 2,000 Improvements - well and sprinkler system 3,841 3,841 Parks and sanitary system 23,877 23,877 Dog Pound 2,081 2,081 City streets, sidewalks, roads and culverts 74, 138 74 , 138 $111,937 $111,937 ~ui1dings and Improvements Bandstand $ l,047 $ 1,047 Uti li ty garage 20,548 20,548 City Hall 44,165 $ 8,065 52,230 Fire Station 23,408 23,408 $ 89,168 $ 8,065 $ 97 ,233 Furnishings and Equipment City Clerkls office $ 18,780 $ 286 $ 19,066 Parks Department 1,677 1,677 Police Department 4,831 16,935 21,766 Mobile and base radio units 17,110 17,110 Traffic lights 9,614 9,614 Fire Department 15,887 5,090 20,977 Street Department 1,066 118 1,184 Mayor's office 518 518 Director of Public Works' office 722 5,683 6,405 $ 70,205 $28,112 $ 98 , 317 Rolling Stock Fire trucks Police cars Dog warden Parks and Street Department $ 4, 286 $40,463 $ 48,l74 32,916 2,626 78.267 $161,983 $469,470 Total $ 48,174 28,630 2,626 78,267 $157,697 $429.007 $ 4,286 - 22 - I CITY OF OKEECHOBEE, FLORIDA --~ SCHEDULE OF GENERAL BONDED DEBT AND INTEREST TO MATURITY September 30, 1977 Principal Principal and Interest Payments Due for Year Ended September 30 ... 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 $ 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 20,000.00 20,000.00 20,000.00 20,000.00 25,000.00 25,000.00 25,000.00 25,000.00 30,000.00 30,000.00 30,000.00 35,000.00 35.000.00 $430,000.00 Total Interest Total $ 29,775.00 $ 44,775.00 28,650.00 43,650.00 27,525.00 42,525.00 26,400.00 41,400.00 25,275.00 40,275.00 24,l50.00 39,150.00 23,137.50 43,137.50 21,787.50 41,787.50 20,437.50 40,437.50 19,087.50 39,087.50 17,737.50 42,737.50 1,6,050.00 41,050.00 14,362.50 39,362.50 12,675.00 37,675.00 10,956.25 40,956.25 8,893.75 38,893.75 6,831.25 36,831. 25 4 ,768 .75 39,768.75 2,362.50 37,362.50 $340,862.50 $770,862.50 Bonds maturing 1982-1996 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 through 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. - 23 - McALPIN CURTIS & ASSOCl^TES. CERTIFIED PUBLIC ACCOUNTANTS r I' I I \ CITY OF OKEECHOBEE. FLORIDA SCHEDULE OF 1958 WATER AND SEWER REVENUE BONDS AND INTEREST TO MATURITY September 30. 1977 Principal Interest Total Principal and Interest. Payments Due for Year Ended September 30 Total $ 1,5,000. 00' $ 9,135.00f $ 24,135.00 16,000.00' 8,460.00' 24,460.00 17,000.00 .' 7,740.00 24,740.00 18,000.00 6,975.00 24,975.00 18,000.00 6,165.00 24,165.00 19,000.00 5,355.00 24,355.00 20,000.00 4,500.00 24,500.00 21,000.00 3,600.00 24,600.00 22,000.00 2,655.00 24,655.00 23)000.00 1,665.00 24,665.00 14,000.00 630.00 14.630.00 $203,000.00 $56.880~00 $259,880.00 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 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%. - 24 - .. A_.&. ......, r. ,nT.r . A CCI"V"'I.l..TItC. rCDTU:n:n PI IRII'- A("rOUNTANTS r ! CITY OF OKEECHOBEE, FLORIDA SCHEDULE OF 1972 WATER AND SEWER REVENUE BONDS AND INTEREST TO MATURITY September 30, 1977 Principal Interest Total Principal and Interest Payments Due for Year Ended September 30 i 1978 $ 4,000.00 $ 19,500.00 $ 23,500.00 I 1979 5,000.00 19,300.00 24,300.00 I 1980 5,000.00 19,050.00 24,050.00 I 1981 5,000.00 18,800.00 23,800.00 I 1982 5,000.00 18,550.00 23,550.00 ! 1983 6,000.00 18,300.00 24,300.00 1984 6,000.00 18,000.00 24,000.00 I 1985 6,000.00 17,700.00 23,700.00 1986 6,000.00 17,400.00 23,400.00 I 1987 7,000.00 17,100.00 24,100.00 I 1988 6,000.00 16,750.00 23,750.00 1989 7,000.00 16,400.00 23,400.00 1990 8,000.00 16,050.00 24,050.00 1991 8,000.00 15,650.00 23,650.00 1992 9,000.00 15,250.00 24,250.00 1993 9,000.00 14,800.00 23,800.00 1994 10,000.00 14,350.00 24,350.00 1995 10,000.00 13,850.00 23,850.00 1996 11,000.00 13,350.00 24,350.00 1997 11,000.00 12,800.00 23,800.00 1998 12,000.00 12,250.00 24,250.00 1999 12,000.00 11,650.00 23,650.00 2000 13,000.00 11,050.00 24,050.00 2001 l3,000.00 10,400.00 23,400.00 2002 14,000.00 9,750.00 23,750.00 2003 14,000.00 9,050.00 23,050.00 2004 15,000.00 8,350.00 23,350.00 2005 15,000.00 7,600.00 22,600.00 2006 16,000.00 6,850.00 22,850.00 2007 17,000.00 6,050.00 23,050.00 2008 18,000.00 5,200.00 23,200.00 2009 19,000.00 4,300.00 23,300.00 2010 21,000.00 3,350.00 24,350.00 2011 22,000.00 2,300.00 24,300.00 2012 24,000.00 1,200.00 25,200.00 Total $390.000.00 $442,300.00 $832,300.00 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 whole or in part in inverse order on any interest payment date at par and accrued interest. - 25 - r. .__._ _ A ___..... ....... _.._............. ....,.... II"" ......rt""\llIo.JT...1o.JTC r I i CITY OF OKEECHOBEE, FLORIDA SCHEDULE OF INTER-FUND ACCOUNTS September 30, 1977 Due From Due To General Fund ". Water and Sewer Fund $29,970 Debt Service Fund $ 135 Debt Service Fund General Fund 135 Water and Sewer Fund General Fund 29,970 Revenue Bond Reserve and Retirement Fund - Revenue Fund 170 170 Total $30,275 $30,275 - 26 - ,-.. .__._.. A __....._. .....-r.. _........."'... DIIDII'" ..rrrulh.lTAIo.tTllO. CITY OF OKEECHOBEE , FLORIDA SCHEDULE OF INSm~CE COVERAGE September 30, 1977 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 300,000 50,000 500/10,000 Workmen's Compensation and Employer's Liability Statutory rates Vehicular Equipment Bodily inj ury Property damage Collision ($100 deductible) Comprehensive 100/500,000 50,000 ACV ACV Public Officials Bonds City Clerk Other employees 15,000 15,000 Police Department - Personal Injury Liability False arrest, libel, etc. 250/500,000 Police and Full-Time Firemen Accidental death 20,000 Volunteer Firemen Accidental death Medical payments Weekly indemnity 10,000 2,500 100 - 27 - r I CITY OF OKEECHOBEE, FLORIDA STATISTICAL TABLES ASSESSED VALUE OF ALL TAXABLE PROPERTY Tax Rolls for Years 1968 Through 1977 Real Personal Homestead Year Property Property Total Exemption 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 I 1970 10,612,610 2,279,271 12,891,881 2,868,200 1969 10,276,593 2,l20,593 12,397,186 2,680,735 1968 9,564,155 2,510,451 12,074,606 2,633,660 I I , Tax Levy and Applicable Rates I Levies Rates Debt General I Debt General Service Government Year Service Government Mills MilLs I i 1977 $43,989 $157 ,519 1.11 4.51 I 1976 35,090 145,732 1.11 4.61 1975 37,848 l35,945 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 l07,292 3 7 1971 49,347 80,5l1 3 6 1970 31,520 77 ,351 2 6 1969 29,868 61,268 2 5 1968 29,416 60,l44 2 5 - 28 - ... .. _ A. ~.~. r. ....-r.... . ArC',....r-I...TCC r.c:OTIClcn PllAl rr A(lOIINTAN1S CITY OF OKEECHOBEE, FLORIDA STATISTICAL TABLES OTHER GENERAL FUND AND WATER-SEWER REVENUES FISCAL YEARS 1968-1977 Revenues - Other Than Property Taxes - General Fund (Note 1) .... ~...~ State Revenue Year Sharing Operational Utility Fines and Franchise (Note 2) (Note 3) Licenses Taxes Forfeitures Fee 1977 $235,839 $l8,783 $82,858 $ 24 ,817 $ 72,821 1976 243,536 l7,49l 80,779 46,477 54,324 1975 237,607 15 ,725 68,100 42,202 l03,703 1974 210,969 20,l06 69,560 52,964 37,330 1973 188,309 4,758 32,953 1972 211,865 24 , 944 23,529 29,189 1971 l59,956 10,220 33,315 . 23,663 1970 137,369 8,446 27,346 21,012 1969 116,597 7,605 31,670 19,167 1968 103,969 8,082 9,317 16,566 Water and Sewer System Revenues Sewer Service Water Delinquent Charges Billings Charges Miscellaneous 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 1968 21,131 98,672 333 10 Water Water Water Total Meters in Meters Meters Non- Water Unmetered Sewer Operation Cut Off Operative Meters Customers Connections 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 l60 1,829 9 352 1970 1,513 107 1,620 21 313 1969 1,440 85 8 1,533 24 309 1968 1,374 l70 4 1,548 25 305 - 29 - J..ArAlftllrt.. rIIDTIC.1l.. ACc.nrl.&TCc. r':OTltltnDllallr ..rrruu..,T......tTC ~. - .'....... Fire Department Ant i- Rece s s i on Permits Interest Payment Fund Miscellaneous $ 8,349 $49,860 $35,000 $ 5l ,084 $16,662 9,065 43,099 15,000 3,737 8,530 31,8Gl 15,000 6,456 10,694 20,912 l3,750 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 1,916 4,546 1,007 Connection Charges Interest on (In Aid of Hydrant Utility Investments Construction) Rental Taxes $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 2,588 3,215 33,802 Note 1 - Amounts for years prior to 1974 have been reclassified to correspond with 1974 and 1975. Note 2 - Amounts reported for 1974 and 1975 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.