The URL can be used to link to this page

Audit Report 09.30.1976 ~. '....... CITY OF OKEECHOBEE. FLORIDA FINANCIAL STATEMENTS September 30, 1976 -, . . McALPIN, CURTIS & O'HAIRE, Cl:fltT,".I:O ,"UaLle ACCOUNTANTS f I. CITY OF OKEECHOBEE. FLORIDA FINANCIAL STATEMENTS September 30, 1976 MAYOR - COUNCIL .., Mayor Audley Dunham' Council - President Russell V. Domer Council - Vice President E. H. Hunt Councilman Lavon Bass Councilman Edward W. Douglas Councilman Clifford L. Betts, Jr. ADMINISTRATIVE City Clerk Sandra Bennett City Attorney David Conlon Municipal Judge Aud1ey Dunham Superintendent - Water and Sewer Department L. C. Fortner, Jr. Chief of Police Edward Chisholm Chief of Fire Department 01en Godwin Building Inspector Richard B. Spray McALPIN, CURTIS & O'HAIRE, CIl...TIP....O ~U.LIC ACCOVNTANT'S - Page 1 CITY OF OKEECHOBEE. FLORIDA FINANCIAL STATEMENTS r [ [ ~ ~ t ~ ,- r- 1= i= i- I- I September 30, 1976 TABLE OF CONTENTS ~. Page ~...... Accountants' Report 2 General Fund: Balance Sheet Statement of Revenues, Expenditures and Change in Fund Balance 3 4 Federal Revenue Sharing Trust Fund: Balance Sheet Statement of Revenues, Expenditures and Change in Fund Balance 5 6 Debt Service Fund: Balance Sheet Statement of Revenues, Expenditures and Change in Fund Balance 7 8 Statement of General Long-Term Debt 9 Statement of General Fixed Assets 10 Water and Sewer Fund: Balance Sheet Statement of Changes in Retained Earnings Statement of Revenues and Expenses Statement of Changes in Financial Position 11 12 13 14 Notes to Financial Statements 15 Statement to Bondholders 17 1= Other Financial Information: Accountants' Report on Other Financial Information Schedule of General Fund Expenditures Compared with Budget Schedule of Changes in Reserve Accounts Schedule of General Bonded Debt and Interest to Maturity Schedule of 1958 Water and Sewer Revenue Bonds and Interest to Naturity Schedule of 1972 Water and Sewer Revenue Bonds and Interest to Naturity Schedule of Inter-Fund Accounts Schedule of Insurance Coverage Statistical Tables 18 19 21 22 23 i- I- 24 25 26 27 :- McALPIN. CURTIS 8: Q'HAIRE. CERT'f"IEO PVBLIC A.CCOUNTANTS -' ___.._L,__-.-'~-~ Page 2 McALPIN, CURTIS & O'HAIRE CERTIFIED PUBLIC ACCOUNTANTS P. O. BOX 3346 FORT PIERCE. FLORIDA 33490 l~ IRA M. McALPIN. JR.. C.P.A. LYMAN B. CURTIS, C.P,A. THOMAS F. O'HAIRE. C.P.A. S. THOMAS HAMILTON, JR., C.P.A. SAMUEL R. PETERKIN. JR.. C.P.A. JOHN O. MORAN, C.P.A. 16 1_ b n. 0 December 21, 1976 ~. '...... Honorable Mayor and City Council City of Okeechobee Okeechobee, Florida I.~ 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, 1976 listed in the foregoing Table of Contents. Our examination was made in accordance with generally accepted auditing stan- dards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circum- stances. We made a similar examination for the year ended September 30, 1975. t i I~ r~ ! The City does not maintain detailed records of the Water and Sewer Property or General Fixed Assets nor is adequate control main- tained over capital additions and retirements, particularly as with re- gard to items constructed by the City. We do not know, and it is im- practical 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 op1n10n, 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, 1976 and the results of their operation for the year then ended in conformity with generally accepted accounting principles applied on a basis con- sistent with that of the preceding year. I~ 7z-t~~,~' cj-o'li~ McAlpin, Curtis & O'Haire Certified Public Accountants -1 .. "1 . .. . ... . .. . ... r ~ L - [ ,~ .... 'l , J -1 ".,....' ~-~~,~~-- '..~.....""""- """". ~ .< CITY OF OKEECHOBEE. FLORIDA GENERAL FUND BALANCE SHEET September 30, 1976 and 1975 ~', ASSETS cash Certificates of Deposit Due from Water and Sewer Fund Due from Federal Revenue Sharing Trust Fund Inventory - motor fuels Taxes receivable Delinquent street and sewer liens Less estimated uncollectible taxes and liens TOTAL ASSETS LIABILITIES AND FUND BALANCE Liabilities Accounts payable Contracts payable Employee payroll deductions Due to Debt Service Fund Total Liabilities Fund Balance Unappropriated TOTAL LIABILITIES AND FUND BALANCE See Notes to Financial Statements .,..,---~ 1976 $ 52,165.65 775,000.00 59,970.61 1,366.17 34,996.29 2,768.34 (37,764.63) $888.502.43 $ 13,754.90 2,541.06 134.96 $ 16,430.92 872,071.51 $888,502.43 Page 3 1975 $122,665.51 592,245.09 64,956.92 9.38 480.34 35,019.88 2,768.34 (37,788.22) $780.357.24 $ 7,405.02 1,198.44 2,177.80 1,262.46 $ 12,043.72 768,313.52 $780.357.24 McALPIN. CURTIS & O'HAIRE. CI:RTIP".O ....,.LIC ACCOUMTA"T'J Page 4 CITY OF OKEECHOBEE. FLORIDA GENERAL FUND STATDlENT OF REVENlJES. EXPENDITURES AND CHANGE IN FUND BALANCE Years Ended September 30, 1976 and 1975 ", 1976 1975 Actual Budget Actual $140,583.79 $ 124,000.00 $127,944. III 190,687.00 176,000.00 176,013.0C 52,849.07 47,000.00 61,594.72 17,491.84 15,000.00 15,725.57 80,779.18 71,000.00 68,100.08 46,477 .54 - 50,000.00 42,202.16 15,000.00 15,000.00 15,000.00 5,115.90 4,000.00 4,720.20 54,324.46 61,000.00 103,703.29 3,950.00 3,500.00 3,810.00 2,592.10 2,500.00 2,785.84 593.40 200.00 243.50 43 , 651.11 25,552.00 35,228.70 $654,095.39 $ 594,752.00 $657,071.20 $ 75,116.55 $ 71 , 115 .00 $ 52,421.83 271,394.13 272,390.78 218,201. 72 114,127.50 139,450.00 128,169.91 9,203.30 9,900.00 8,373.69 80,495.92 639,331.49 55,324.60 $550,337.40 $1,132,187.27 $462,491. 75 $103,757.99 $ (537,435.27) $194,579.45 768,313.52 573,734.07 $872.071.51 $768.313.52 Revenues Property taxes State revenue sharing funds Additional cigarette tax Occupational licenses Utility taxes Fines and forfeitures Fire Department payment - Okeechobee County Building permits Franchise fee Competency cards Mobile home license fees Humane Department fees Interest and miscellaneous Total Revenues Expenditures General government Public safety Public works Health and welfare Miscellaneous Total Expenditures Excess of Revenues Over Expenditures Fund Balance - October 1 Fund Balance - September 30 See Notes to Financial Statements ~ Cash Certificate of Deposit Liabilities Due to General Fund Fund Balance CITY OF OKEECHOBEE. FLORIDA FEDERAL REVENUE SHARING TRUST FUND BALANCE SHEET September 30, 1976 and 1975 ASSETS ~, TOTAL ASSETS LIABILITIES AND FUND BALANCE TOTAL LIABILITIES AND F1JND BALANCE See Notes to Financial Statements 1976 $ 2,751.20 285,560.00 $288.311.20 Page 5 1975 $ 1,951.13 169,000.00 $170.951.13 $ 9 . 38 $288;3l1.20 170,941.75 $288.311.20 $170.951.13 McALPIN. CURTIS Be O'HAIRE. c:<<litTI"'.D ~.l..'C ACCOU"TA"TS CITY OF OKEECHOBEE, FLORIDA FEDERAL REVENUE SHARING TRUST FUND Page 6 STATEHENT OF REVThlJES. EXPENDITURES AND CHANGE IN FUND BALAJ.'1CE Years Ended September 30, 1976 and 1975 ", Revenues Federal Revenue Sharing Interest income Expenditures Excess of Revenues Over Expenditures Fund Balance - October 1 Fund Balance - September 30 See Notes to Financial Statements 1976 1975 $106,675.00 $130,748.00 10,694.45 3,928.84 $117,369.45 $l34,676.84 -0- -0- $117,369.45 $134,676.84 170,941. 75 36,264.91 $288.3l1.20 $170.941. 75 Il.A_!\1 ~I~ rllgTI<: A n''-IAI'''t=' .......-r.....n .U.LI~ AccaUNTAI\I CITY OF OKEECHOBEE. FLORIDA DEBT SERVICE FUND BALANCE SHEET September 30, 1976 and 1975 ~', ASSETS Cash Certificate of Deposit Due from General Fund TOTAL ASSETS LIABILITIES AND FUND BALANCE Liabilities Matured bonds and coupons outstanding Fund Balance TOTAL LIABILITIES AND FUND BALANCE See Notes to Financial Statements 1976 $ 4,443.79 100,330.06 134.96 $104.908.81 $ 2,012.00 102,896.81 $104.908.81 Page 7 1975 $ 675.78 99,664.06 1,262.46 $101. 602.30 $ 2,012.00 99,590.30 $101. 602.30 CITY OF OKEECHOBEE. FLORIDA DEBT SERVICE FUND STATE}1ENT OF REVD.-rm:S. EXPENDITURES AND CHANGE IN FUND BALANCE Years Ended September 30, 1976 and 1975 See Notes to Financial Statements Page 8 "~ '~-"~ ~,....~""""-".--,,-"',~--~.'._.~-- ~ CITY OF OKEECHOBEE, FLORIDA STAT~ffiNT OF GENERAL LONG-TERM DEBT September 30, 1976 and 1975 Amounts Available And To Be Provid~(t For The Payment of General Bonded Debt Refunding Bonds of 1971: Amounts available in Debt Service Fund Amount to be provided Total Available And To Be provided General Bonded Debt Refunding Bonds of 1971: Principal amount Interest to maturity Total General Bonded Debt See Notes to Financial Statements 1976 $102,896.81 708.490.69 $811. 387.50 $440,000.00 371,387.50 $811.387.50 Page 9 1975 $ 99,590.30 753,072.20 $852.662.50 $450,000.00 402,662.50 $852.662.50 I'~-- I I - Page 10 CITY OF OKEECHOBEE. FLORIDA STATEMENT OF GENERAL FIXED ASSETS' Year Ended September 30, 1976 Balance Net September 30, 1975 Additions Balance September 30, 1976 Land and Improvements Real estate - lot adjoining City Hall Lot - elevated tank Improvements - well and sprinkler system - City Hall Parks and sanitary system Dog Pound City streets, sidewalks, roads and culverts ! , $ 6,000.00 2,000.00 $ 6,000.00 2,000.00 3 , 841. 30 23,877.09 2,080.74 3,841.30 23,877 .09 2,080.74 74,138.14 $111,937.27 74,138.14 $111,937.27 Buildings and Improvements Bandstand $ 1,046.75 $ 1,046.75 Utility garage 20,548.65 20,548.65 City Hall 44,164.88 44,164.88 Fire Station 23,407.80 23,407.80 $ 89,168.08 $ 89,168.08 Furnishings and Equipment City Clerk's office $ 10,020.73 $ 8,759.75 $ 18,780.48 Parks Department 1,677.18 1,677.18 Police Department 4,830.79 4,830.79 Mobile and base radio units 17,109.92 17,109.92 Traffic lights 9,614.00 9,614.00 Fire Department 14,525.09 1,362.00 15,887.09 Street Department 1,065.89 1,065.89 Mayor r s office 517.76 517.76 Director of Public Works office 721. 68 721. 68 $ 60,083.04 $10,121. 75 $ 70,204.79 Ro 11 ing Stock Fire trucks $ 48,174.31 $ 48,174.31 Police cars 21,672.00 $ 6,957.66 28,629.66 Dog Warden 750.00 1,876.36 2,626.36 Parks and Street Department 71,797.03 6,470.00 78,267.03 $142,393.34 $15,304.02 $157,697.36 Total General Fixed Assets $403,581. 73 $25.425.77 $429.007.50 See Notes to Financial Statements McALPIN, CURTIS 8:: O'HAIRE. C."T,..r.o lfO.LIC ACCOUNTAM'n -:=,..~~=:---- - - -..~,:"_.~_.__.----.." CITY OF OKEECHOBEE, FLORIDA WATER AND SE\<i'ER FUND BALANCE SHEET September 30, 1976 and 1975 ~, ASSETS 1 1976 1975 Current Assets Cash $ 90,234.06 $ 78,095.92 Certificates of Deposit 169,593.57 163,635.09 Accounts receivable (Note 5) 92,766.83 25,038.l0 Less provision for uncollectible accounts (3,942.74) (7,081.21) Acc~ed interest receivable 2,107.42 1,307.22 Due from Revenue Bond Reserve and Retirement Fund 255.37 209.58 Total Current Assets $ 351,014.51 $ 261,204.70 Restricted Assets Revenue Bond Reserve and Retirement Fund (Note 2) Cash Certificates of Deposit $ 27,307.92 48,400.00 Revenue Bond Depreciation Fund (Note 3) Investments 27,366.59 Construction Fund Cash Total Restricted Assets $ 103,074.51 Utility plant Plant, property and equipment Less accumulated depreciation Net Utility Plant $2,076,641.33 (502,500.41) $1,574,140.92 TOTAL ASSETS $2.028.229.94 See Notes to Financial Statements $ 23,432.08 48,400.00 25,416.64 63,970.60 $ 161,219.32 $1,946,422.22 (450,584.37) $l,495,837.85 $1.918.261.87 ~', LIABILITIES Current Liabilities Accounts payable Accrued payroll deductions Accrued interest on contracts Due to General Fund Current portion of contracts payable Water deposits Escrow deposit Total Current Liabilities (Payable From Restricted Assets) Current contracts payable Matured interest coupons Due to General Fund Due to Revenue Fund Total Total Current Liabilities Long-Term Debt (Note 4) Revenue Bonds - Series 1958 Revenue Bonds - 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 Retained Earnings TOTAL LIABILITIES 1976 $ 5,945.33 1,251.42 59,970.61 9,630.16 60,195.06 870.25 $ 137,862.83 $ 720.00 255.37 $ 975.37 $ 138,838.20 $ 218,000.00 394,000.00 32,286.67 (9,630.l6) $ 634,656.51 $ 74,732.55 25,000.00 2,366.59 $ 102,099.14 1,152,636.09 $2.028.229.94 Page 11 1975 $ 7,296.96 992.42 351. 38 59,970.61 18,239.77 57,066.55 $ 143,917.69 $ 39,363.72 4,986.31 209.58 $ 44,559.61 $ 188,477 .30 $ 232,000.00 397,000.00 50,891. 87 (18,239.77) $ 661,652.10 $ 71,622.50 25,000.00 416.64 $ 97,039.14 971,093.33 $1. 918.261. 87 CITY OF OKEECHOBEE. FLORIDA WATER AND SEHER FUND STATEHENT OF CHANGES IN RETAINED EARNINGS Years Ended September 30, 1976 and 1975 l'. 1976 Balance - October 1 $ 971~093.33 Additions (Deductions) Net income (loss) Contributions in aid of construction Increase in debt service requirements Interest earned and retained in Depreciation Fund Excess balance in Depreciation Fund transferred to Revenue Fund Additional amount transferred from Revenue Fund to Bond Reserve Fund 157 ~221.21 29 ~ 381. 55 (3,110.05) (1,949.95) Balance - September 30 $1.152.636.09 See Notes to Financiaf Statements .... Page 12 1975 $949,225.83 (4,8l9.78) 9,400.00 (l,174.03) (416.64) 38,767.95 (19,890.00) $971. 093.33 Page 13 CITY OF OKEECHOBEE. FLORIDA WATER AND SEWER FUND STATEMENT OF REVENUES AND EXPENSES Years Ended September 30, 1976 and 1975 ~', Net Income (Loss) 1976 1975 $357,349.39 $249,405.84 49,867.13 33,034.97 25,000.00 25,000.00 7,404.38 6,514.81 14,289.21 13,056.35 47,046.20 3,266.75 $500,956.31 $330,278.72 $127,320.89 $112,683.05 8,565.38 6,765.62 3,658.33 2,148.59 40,998.90 34,961. 24 14,826.56 18,175.33 4,515.27 5,142.13 28,062.74 46,707.94 7,441. 33 5,820.66 2,100.75 8,048.68 6,007.86 7,741.12 3,046.86 2,966.33 2,890.20 741. 44 1,750.00 1,263.12 7,786.94 1,442.95 1,542.70 ./ $260,514.71 $254,608.20 $240,441.60 $ 75,670.52 .......$ 51,916.04 $ 48,660.56 30,241.18 29,874.20 ".. 1,063.17 1,955.54 $ 83,220.39 $ 80,490.30 $157.221.21 $ (4.819.78) Revenues Water sales Sewer charges Hydrant rental Penalties and delinquent fees Interest on investments Miscellaneous (Note 5) Total Revenues Operating Expenses Salaries and wages Payroll 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 See Notes to Financial Statements CITY OF OKEECHOBEE. FLORIDA \.JATER AND SEWER FUND Page 11+ STATm.lENT OF CHAi'IGES IN FINANCIAL POSITION Years Ended September 30, 1976 and 1975 ", Sources of Working Capital Net income (loss) Expenses not requiring outlay of working capital: Depreciation Contributions in aid of construction Decrease in restricted assets Total Sources of Working Capital Uses of Working Capital Additions to Utility plant Decrease in liabilities payable from restricted assets Payment on long-term debt Total Uses of Working Capital Increase (Decrease) in Working Capital 1976 1975 $157,221. 21 $ (4,819.78) 51,916.04 48,660.56 29,381. 55 9,400.00 58,144.81 17,427.73 $296,663.61 $ 70,668.51 $130,219.11 $ 44,523.32 43,584.24 140.45 26,995.59 34,136.08 $200,798.94 ~ 78,799.85 $ 95.864.67 $ ( 8 . 131. 34 ) Increase (Decrease) in Working Capital Consists of Increase (Decrease) in Current Assets: Cash $ 12,138.14 $(16,277.93) Certificates of Deposit 5,958.48 18,635.09 Accounts receivable 70,867.20 (8,687.58) Accrued interest receivable 800.20 209.30 Due from other funds 45.79 84.55 Increase (Decrease) in Current Assets $ 89,809.81 $ (6,036.57) Increase (Decrease) in Current Liabilities: Accounts payable $ (l, 351. 63) $ (3,232.76) Accrued payroll deductions 259.00 (12.l6) Accrued interest on contracts (351. 38) (351. 95) Current portion of long-term debt (8,609.61) 626.36 Water deposits 3,128.51 5,065.28 Escrow deposits 870.25 Increase (Decrease) in Current Liabilities ~ (6,054.86) $ 2,094.77 Increase (Decrease) in Working Capital $ 95.864.67 $ (8 .131. 34' See Notes to Financial Statements Page 15 CITY OF OKEECHOBEE. FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 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 basis follows: 1. Revenues are recorded as received in cash except for (a) Revenues susceptible to accrual and (b) Material revenues not received at normal time of receipt. 2. Expenditures are recorded on an accrual basis. Investments - Investments are stated at cost. General General general general Fixed Assets - General fixed Fund at the time of purchase. fixed asset group of accounts. fixed assets. assets are recorded as expenditures in the Such assets are capitalized at cost in the No depreciation has been provided on the Utility Plant - Utility Plant is stated at cost. Depreciation was computed on a composite annual rate of 2-1/2%. Note 2 - 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, 1976, the amount required and the amount on deposit in the 1958 Revenue Bond Sinking Fund is as follows: Matured interest coupons 50% of interest due January 1, 1977 25% of bond principal due July 1, 1977 Maximum reserve (bond principal and interest due 1981) Reserve Balance Due to Revenue Fund $ 720.00 2,452.50 3,750.00 24,975.0Q, $31,897.50 125.00 Cash Balance $32.022.50 The 1972 Revenue Bond Ordinance requires, among other things, monthly deposits equal to one-twelfth of the next annual bond principal and interest payment. In addition, $390.00 is to be deposited monthly in the reserve account in the Sinking Fund until a maximum of $23,400.00 is on deposit. During the year, the City satisfied this pro- vision of the ordinance. At September 30, 1976, the amount required and the amount on deposit in the 1972 Revenue Bond Sinking Fund is as follows: Page 16 CITY OF OKEECHOBEE, FLORIDA NOTES TO FINk~CIAL STATEMENTS (CONTINUED) September 30, 1976 Note 2 - Revenue Bond Reserve and Retirement Funds (Continued) ~~. ",-: Balance of construction funds 75% of bond principal and interest due January 1, 1977 Maximum reserve Reserve Balance Due to Revenue Fund $ 2,380.05 l7,775.00 23,400.00 $43,555.05 130.37 Cash Balance $43.685.42 Note 3 - Depreciation Fund The 1958 Revenue Bond Ordinance requires that a Depreciation Fund of $25,000.00 be maintained. The Fund may be used, with approval of the City Council, to pay for capital additions or unforeseen emergencies. At September 30, 1976, the Fund was $2,366.59 in excess of requirements. Note 4 - Long-Term Debt Details concerning the 1958 Revenue Bonds and the 1972 Revenue Bonds are shown on pages 23 and 24 respectively 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 indebtedness. The balance of the contract was $20,500.54 at September 30, 1976 and the payments during the year totaled $1,937.47. 2. The balance due on the Ernest Evans contract for the Wilcox Shores and Okeechobee Estates extension was $11,786.13 at September 30, 1976. The balance is payable in monthly install- ments of $686.31, which includes interest at 6%. Note 5 - Refund From Florida Power and Light Company During the period October 18, 1973 to August 13, 1976, Florida Power and Light Company erroneously computed the monthly billings for electrical consumption at the Water Department. Total overpayments by the City totaled $53,089.06 for the period involved. Settlement of the overpayment was made by credits issued for the billings of September 15, 1976 and October 14, 1976, totaling $3,762.09 and a check on November 4, 1976 for $49,326.97. The overpayment applying to the period ending September 30, 1976 of $51,155.92 has been included in accounts receivable and the overpayment $34,842.65 applying to the period prior to October 1, 1975 has been included in miscellaneous revenues on the financial statements. Page 17 McALPIN, CURTIS & O'HAIRE CERTIFIED PUBL.IC ACCOUNTANTS P. 0, BOX 3346 FORT PIERCE. FLORIDA 33450 IRA M. McALPIN. JR.. C.P.A. LYMAN B. CURTIS. C.P.A. THOMAS F. O'HAIRE. C.P.A. S. THOMAS HAMILTON. JR.. C.P.A. SAMUEL R. PETERKIN, JR.. C.P,A. JOHN O. MORAN, C.P.A. December 2l, 1976 ", Honorable Mayor and City ofOkeechobee Okeechobee, Florida City Council We have examined the financial statements of the City of Okeechobee, Florida for the year ended September 30, 1976 and have issued our report thereon under date of December 21, 1976. 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. .. 'n1c~. ~-r()'/J4M.e McAlpin Curtis & 0 'Haire ' Certified Public Accountants i- I I Page 18 McALPIN, CURTIS & O'HAIRE CERTIFIED PUBLIC ACCOUNTANTS P. O. BOX 3346 FORT PIERCE, FL.ORIOA 33450 IRA M. McAl.PIN. JR.. C.P.A. December 21, 1976 LYMAN B. CURTIS. C.P.A. THOMAS F. O'HAIRE. C.P.A. t., S. THOMAS HAMILTON. JR.. C.P.A, SAMUEL R. PETERKIN. JR., C.P.A JOHN D. MORAN. C.P.A. 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 infor- mation 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. . . ~~Zh~~r:-O't~ Certified Public Accountants I I I -~' -....... Page 19 CITY OF OKEECHOBEE, FLORIDA GENERAL FUND SCHEDULE OF EXPENDITURES COMPARED WITH BUDGET Year Ended September 30, 1976 Actual Budget General Government City Council salaries $ 5,400.00 $ 5,400.00 City Council expense 3,600.00 3,600.00 Mayor's salary 1,200.00 1,200.00 Mayor's expense 1,200.00 1,200.00 Mayor's office expense 119.67 100.00 Audit fee 2,287.50 2,175.00 Board of Adjustment 1,500.00 1,500.00 City Attorney salary 9,000.00 9,000.00 City Attorney expense 300.00 Attorney special fees 2,000.00 Fee for revising ordinances 1,000.00 3,500.00 City C1erk's salary 10,100.00 10,100.00 Deputy City Clerk's salary 8,099.84 7,740.00' Deputy Clerk trainee 738.36 City Clerk's office expense 3,569.93 2,000.00 City Clerk's office equipment 8,759.75 4,500.00 Telephone and telegraph 4,509.93 4,300.00 City Hall operation and maintenance 10,598.83 7,500.00 New construction and additions 3,432.74 5,000.00 $ 75,116.55 $ 71,115.00 Public Safety Police Department salaries $126,354.96 $ 121,300.00 Police incentive pay 1,130.00 1,300.00 Police Department expense 30,898.80 30,000.00 Indian River Community Crime Lab 1,958.97 1,886.78 Police Department equipment and vehicles 10,839.66 5,000.00 Communications expense 2,487.96 2,500.00 Fire Department salaries 43,341.55 42,770.00 Fire Department expense 15,532.91 11,710.00 Fire Department demand charge 25,000.00 25,000.00 Fire Department equipment 17,550.00 Fire Department walkie-talkies 1,362.00 1,104.00 Building official salary 10,099.84 9,740.00 Building official expense allowance 2,000.00 2,080.00 Building official office expense 387.48 250.00 Civil Defense 200.00 $271,394.13 $ 272,390.78 Public Works Director of Public Works secretary salary $ 3,929.92 $ 3,750.00 Director of Public Works expense and equipment 271.17 500.00 Street Department salaries 46,043.30 56,000.00 CITY OF OKEECHOBEE. FLORIDA Page 20 GENERAL FUND SCHEDULE OF EXPENDITIJRES COMPARED WITH BUDGET (CONTINUED) Year Ended September 30, 1976 Actual Budget Public Horks (Continuedf" !" ."": Street Department expense $ 25,564.19 $ 35,000.00 Street Department equipment 6,470.00 8,000.00 Refuse collection 9,599.97 9,200.00 Street lighting 22,248.95 27,000.00 $114,127.50 $ 139,450.00 Health and Welfare Humane officer salary $ 8,164.34 $ 7,900.00 Animal Pound expense 1,038.96 2,000.00 $ 9,203.30 $ 9,900.00 Miscellaneous Donations $ 1,500.00 $ 1,500.00 Utilities 2,764.88 1,700.00 Health insurance 7,228.83 5,650.00 General insurance 19,180.81 15,000.00 Payroll taxes 15,978.98 16,000.00 Unemployment taxes 858.26 1,000.00 City Clerk retirement 4,738.76 4,739.25 Pension Plan payments 3,882.00 3,882.00 Employee Christmas bonds 465.00 465.00 Overtime 15,136.62 4,000.00 Condemnation proceedings 500.00 Nerit salaries 1,156.53 11,700.00 Contingencies 7,605.25 35,000.00 Transfer to Hater and Sewer Fund 538,195.24 $ 80,495.92 $ 639,331.49 Total $550.337.40 $1.132 .187 . 27 McALPIN. CURTIS 8: O'HAIRE. C:CRTI,,",aD PU_LIC ACCOUNT" Page 21 CITY OF OKEECHOBEE. FLORIDA WATER AND SEi.JER FUND SCHEDULE OF CHANGES IN RESERVE ACCOUNTS Year Ended September 30, 1976 ~', Balance - October 1, 1975 Total $ 97,039.14 Bond Reserve and Retirement Fund Current Maxinnnn Depreciation Maturities Reserve Fund $23,247.50 $48,375.00 $25,416.64 Additions From Operating Fund Bond principal requirements Bond interest requirements Bond construction fund Interest earned on investments Total Additions $ 18,000.00 $18,000.00 29,971.18 29,971.18 2,380.05 2,380.05 5,448.07 $ 3,498.12 $ 1,949.95 $ 55,799.30 $50,351.23 $ 3,498.12 $ 1,949.95 Deductions Payments for Bond principal Bond interest Transfer to Revenue Fund Total Deductions $ 17,000.00 $17,000.00 30,241.18 30,241.18 3,498.12 $ 3,498.12 $ 50,739.30 $47 , 241.18 $ 3,498.12 $102.099.14 $26.357.55 $48.375.00 $27.366.59 Balance - September 30, 1976 Page 22 CITY OF OKEECHOBEE. FLORIDA SCHEDULE OF GENERAL BONDED DEBT AND INTEREST TO MATURITY September 30, 1976 Principal Interest Total Principal and Interest Payments Due for Year Ended September'30 ... 1977 $ 10,000.00 $ 30,525.00 $ 40,525.00 1978 15,000.00 29,775.00 44,775.00 1979 15,000.00 28,650.00 43,650.00 1980 15,000.00 27,525.00 42,525.00 1981 15,000.00 26,400.00 41,400.00 1982 15,000.00 25,275.00 40,275.00 1983 15,000.00 24,150.00 39,150.00 1984 20,000.00 23,137.50 43,137.50 1985 20,000.00 21,787.50 41,787.50 1986 20,000.00 20,437.50 40,437.50 1987 20,000.00 19,087.50 39,087.50 1988 25,000.00 17,737.50 42,737.50 1889 25,000.00 16,050.00 41,050.00 1990 25,000.00 14,362.50 39,362.50 1991 25,000.00 12,675.00 37,675.00 1992 30,000.00 10,956.25 40,956.25 1993 30,000.00 8,893.75 38,893.75 1994 30,000.00 6,831.25 36,831. 25 1995 35,000.00 4,768.75 39,768.75 1996 35,000.00 2,362.50 37,362.50 Total $440.000.00 $371. 387 .50 $811.387.50 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. McALPIN. CURTIS Be O'HAIRE. CEATIP'I"O PUBI..Jl; ACCOUNT""'1 Page 23 CITY OF OKEECHOBEE. FLORIDA SCHEDULE OF 1958 WATER M"D SEWER REVENUE BONDS AND INTEREST TO MATURITY September 30, 1976 ~', Principal and Interest Payments Due for Year Ended September 30 Princ~ Interest Total Total $ 15,000.00 $ 9,810.00 $ 24,810.00 15,000.00 9,135.00 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 $218.000.00 $66.690.00 $284,690.00 1977 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%. Page 24 CITY OF OKEECHOBEE. FLORIDA SCHEDULE OF 1972 WATER AND SEWER REVENUE BONDS Ai'ID INTEREST TO HATURITY September 30, 1976 Principal Interest Total Principal and Interest Payments Due for Year Ended Sept~ber ~~ 1977 $ 4,000.00 $ 19,700.00 $ 23,700.00 1978 4,000.00 19,500.00 23,500.00 1979 5,000.00 19,300.00 24,300.00 1980 5,000.00 19,050.00 24,050.00 1981 5,000.00 18,800.00 23,800.00 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 1985 6,000.00 17,700.00 23,700.00 1986 6,000.00 17,400.00 23,400.00 1987 7,000.00 17,100.00 24,100.00 1988 7,000.00 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 13,000.00 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 $394.000.00 $462.000.00 $856.000.00 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 subordinatl 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. McALPIN. CURTIS Be O'HAIRE, CEATI"'"!!:D PV....IC Ac:c:our r Page 25 CITY OF OKEECHOBEE. FLORIDA SCHEDULE OF INTER-FUND ACCOUNTS September 30, 1976 Due From Due To General Fund ", Water and Sewer Fund $59,970.61 Debt Service Fund $ 134.96 Debt Service Fund General Fund 134.96 Water and Sewer Fund General Fund 59,970.61 Revenue Bond Reserve and Retirement Fund - Revenue Fund 255.37 255.37 Total $60.360.94 $60.360.94 CITY OF OKEECHOBEE. FLORIDA SCHEDULE OF INSURANCE COVERAGE September 30, 1976 Description Fire and extended coveragg City Hall (80% Co-Insuranc~)~ Water Department buildings Comprehensive General Liability Bodily injury Property damage Medical payments Workmen's Compensation and Employer's Liability Vehicular Equipment Bodily injury Property damage Collision ($50 deductible) Comprehensive Public Officials Bonds City Clerk Other employees Police Department - Personal Injury Liability False arrest, libel, etc. Police and Full-time Firemen Accidental death Volunteer Firemen Accidental death Medical payments Weekly indemnity Page 26 Coverage 100,000 77,000 300,000 50,000 500/10,000 Statutory rates 50/100,000 25,000 ACV ACV 15,000 15,000 250/500,000 20,000 10,000 2,500 50 McALPIN. CURTIS 8: Q'HAIRE. CC"'T'''II:D PU.LIC ACCOUNTANT' Page 27 CITY OF OKEECHOBEE, FLORIDA STATISTICAL TABLES ASSESSED VALUE OF ALL TAXABLE PROPERTY Tax Rolls for Years 1967 Through 1976 ". Real -, Personal Homestead Year Property Property Total Exemption 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 1968 9,564,155 2,510,451 12,074,606 2,633,660 1967 9,455,220 2,488,438 11,943,658 2,659,495 Tax Levy and Applicable Rates Levies Rates Debt General I Debt General Service Government I Year Service Government Mills Mills 1976 $35,090.00 $145,732.00 1.11 4.61 1975 37,848.00 135,945.00 1.11 4.59 1974 51,542.00 123,475.00 1.65 4.59 I 1973 47,181.00 112,113.00 1.65 4.50 1972 55,653.85 107,292.63 3 7 1971 49,347.04 80,511.84 3 6 1970 31,520.16 77,351.29 2 6 1969 29,868.70 61,268.10 2 5 1968 29,416.54 60,144.93 2 5 1967 29,206.30 59,718.30 2 5 r I ! CITY OF OKEECHOBEE. FLORIDA STATISTICAL TABLES OTHER GENERAL FUND AND HATER-SEHER REVENUES FISCAL YEARS 1967-1976 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 1976 $243,536.07 $17,491.84 $80,779.18 $46,477.54 $ 54,324.46 1975 237,607.72 15,725.57 68,100.08 42,202.16 103,703.29 1974 210,969.97 20,106.85 69,560.16 52,964.07 37,330.73 1973 188,309.30 4,758.82 32,953.74 1972 211,865.86 24,944.43. 23,529.30 29,189.51 1971 159,956.76 10,220.06 33,315.35 23,663.52 1970 137,369.11 8,446.76 27,346.53 21,012.19 1969 116,597.18 7,605.38 31,670.20 19,167.08 1968 103,969.03 8,082.27 9,317.39 16,566.53 1967 85,110.05 7,3l7.27 16,093.19 15,880.21 Hater and Sewer System Revenues Sewer Service Hater Delinquent Charges Billings Charges Miscellaneous 1976 $49,867.13 $357,349.39 $7,404.38 $47,046.20 1975 33,034.97 249,405.84 6,514.81 3,266.75 1974 35,181.05 244,293.41 6,430.76 2,988.53 1973 24,658.51 168,080.50 3,412.90 1,139.43 1972 30,922.35 185,747.67 3,820.90 2,585.82 1971 23,659.43 133,019.45 367.00 1,762.75 1970 21,868.10 115,438.63 164.00 690.40 1969 22,152.00 105,889.68 177 . 00 101.00 1968 21,131.11 98,672.14 333.00 10.20 1967 21,346.11 95,399.58 90.00 829.19 Hater Hater Hater Total Meters in Meters Meters Non- Water Urnnetered Sewer Operation Cut Off Operative Meters Customers Connections 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 l,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 1968 1,374 170 4 1,548 25 305 1967 1,297 168 II 1,476 23 301 Page 28 Fire Department Permits Interest Payment Miscellaneous $ 9,065.90 $43,099.11 $15,000.00 $3,737.49 8,530.20 31,801. 90 15,000.00 6,456.14 10,694.18 20,912.42 13,750.00 4,653.94 6,185.85 9,691.59 12,500.00 4,908.98 6,496.55 13,331.04 11,000.00 2,355.59 6,240.11 8,330.99 1,945.63 3,019.50 8,331.00 1,757.24 1,285.00 4,581.00 1,916.16 1,916.50 4,546.37 1,007.87 1,716.80 3,357.66 1,143.51 $l4,289.21 13,056.35 12,073.39 7,975.93 12,639.30 7,639.25 7,639.22 4,139.22 2,588.47 3,544.51 Connection Charges (In Aid of Construction) $lO,965.00 9,400.00 13,467.00 12,685.00 19,135.00 7,535.00 4,015.00 2,050.00 3,215.00 2,755.00 Hydrant Rental Utility Taxes Interest on Investments $25,000.00 25,000.00 25,000.00 $44,878.07 52,415.52 45,976.04 42,733.23 38,610.54 33,802.29 30,832.2l 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.