1982/1983 Fiscal Year
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CITY OF OKEECHOBEE, FLORIDA
FINANCIAL STATEMENTS
Year Ended September 30, 1983
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CITY OF OKEECHOBEE, FLORIDA
FINANCIAL STATEMENTS
Year Ended September 30, 1983
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TABLE OF CONTENTS
page
Accountants' Opinion
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Combined Balance Sheet - All Fund Types and Accounts Groups
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Combined Statement of Revenues, Expenditures and changes
in Fund Balances - All Governmental Fund Types
5
Combined Statement of Revenues, Expenditures and changes
in Fund Balances - Budget and Actual - General and
Special Revenue Fund Types
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Combined Statement of Revenues, Expenses and Changes in
Retained Earnings/Fund Balances - All Proprietary
Fund Types and Pension Trust Funds
8
Combined Statement of Changes in Financial position -
All Proprietary Fund Types and Pension Trust Funds
10
Notes to Financial Statements
11
Supplementary Information to Financial Statements:
Accountants' Opinion on Supplementary Information
23
General Fund:
Schedule of Revenues (Budget and Actual)
24
schedule of Expenditures (Budget and Actual)
26
Pension Trust Funds:
Combining Balance Sheet
29
Combining Statement of Revenues, Expenses and
Changes in Fund Balances
30
Combining Statement of changes in Financial Position
31
CITY OF OKEECHOBEE, FLORIDA
FINANCIAL STATEMENTS
Year Ended September 30, 1983
TABLE OF CONTENTS - Continued
page
Supplementary Information to Financial Statements: (Cont'd)
Special Revenue Fund - Federal Revenue Sharing Trust Fund -
Statement of Revenues and Expenditures (Budget and Actual)
32
Debt Service Fund - Statement of Revenues and Expenditures
(Budget and Actual)
33
Water and Sewer Enterprise Fund - Schedule of Changes in
Reserve Accounts
34
Statistical Information:
Accountants' Report on Statistical Information
35
Summary of Insurance coverage
36
Schedule of Assessed values, Tax Levies and Rates -
Last Ten Years
37
Schedule of Certain Revenues and Utility Customers - Last Ten Years
38
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427 North Magnolia Avenue
p. 0. Box 3031
Orlando, Florida 32802
(305) 423-3426
700 20th Street
P. 0. Box 249
Vero Beach, Florida 32961
(305) 562-4158
305 East North Park Street
P. 0. Box 368
Okeechobee, Florida 33472
(813) 763-0214
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200 North West Avenue l
P. O. Box 247
Belle Glade, Florida 33430
(305) 996.5525
October 26, 1983
To The Honorable Mayor and Members
of the City Council
City of Okeechobee
Okeechobee, Florida
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We have examined the combined financial statements of the
City of Okeechobee, Florida as of and for the year ended September 30,
1983, as listed in the foregoing table of contents. Our examination
was made in accordance with generally accepted auditing standards
and, accordingly, included such tests of the accounting records and
such other auditing procedures as we considered necessary in the cir-
cumstances, except as stated in the following paragraph.
The City has not maintained adequate detail records in support
of the cost of the water and sewer utility plant in service (carrying
value of $3,381,554 at September 30, 1983) and land and improv~ments,
buildings and improvements, furnishings and equipment, and rolling stock
included in the general fixed asset group of accounts (carrying value
of $1,416,753 at September 30, 1983) and we were unable to obtain suf~
ficient supporting documentation to form an opinion with respect to
the stated cost of these items acquired in years prior to october 1,
1981 or the accumulated depreciation applicable to the water and s<ewer
utility plant in service at September 30, 1983 or the provision for de~
preciation for the year then ended. Accordingly, we are unable to ex~
press, and we do not express an opinion on the accompanying financial
statements of the Water and Sewer Fund and the gene,ral fixed assets
group of accounts.
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In our op1n10n, the financial statements referred to above,
other than the Water and Sewer Fund and the general fixed assets group
of accounts, present fairly the financial position of the City of
Okeechobee, Florida, at September 30, 1983, and the results of its
operations and the changes in financial position of its fiduciary pension
trust fund types for the year then ended, in conformity with generally
accepted accounting principles applied on a basis consistent with that
of the preceding y~~r.
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Certified ~lic Accountants
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ASSETS
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cash, including $35,577 in interest bearing
accounts
Investments (Note 1)
Receivables (Less allowances for doubtful
accounts) :
Customer accounts, less allowances of
$3,120 (Note 1)
Due from other governmental agencies
Accrued interest
Due from other funds
Fuel inventories (Note 1)
Restricted assets: (Notes 5 and 6)
Cash
Investments (Note 1)
property, plant and equipment, net (Where
applicable) of accumulated depreciation (Note 2)
Amount available in Debt Service Fund
Amount to be provided for retirement of
general long-term debt
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Total assets
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CITY OF OKEECHOBEE, FLORIDA
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
September 30, 1983
Governmental Fund Types
Revenue Debt
General Shari~ Service
$ 17,096
283,520
$ 57
102,133
Proprietary
Fund
Water
and Sewer
$ 81,208
432,418
71,716
823
15,489
26,775
89,390
3,381,554
$4,099,373
Note: The accompanying Notes to Financial Statements are an integral part of this statement.
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$ 1,211
65,940
9,719
19,679
844
5,948
11 , 654
$327,937
$86,830
$103,034
Fiduciary
Funds
Employee
Pension
Trust Funds
$ 35,084
586,000
$621,084
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Account
General
Fixed
Assets
$
1,416,753
$1,416,753
Groups
General
Long-
Term Debt
$
97,340
428,846
$526,186
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Total
(Memorandum
Qnly)
$ . 134,656
1,470,011
81,435
19,679
1,667
21,437
11,654
26,775
89,390
4,798,307
97,340
428,846
$7,181,197
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CITY OF OKEECHOBEE, FLORIDA
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS - Continued
September 30, 1983
LIABILITIES AND FUND EQUITY
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Liabilities:
Accounts payable
Contracts payable
Customer deposits
payable from restricted assets:
Accrued interest on bonds payable
Current portion of bonds payable
Matured bond interest coupons
Matured bonds and interest coupons
Due to other funds
Deferred revenues
Long-term indebtedness (Notes 1 and 3)
Total liabilities
Fund Equity:
Contributed capital (Note 4)
Investment in general fixed assets
Retained earnings:
Reserved'for -
Revenue bond retirement (Note 5)
Depreciation fund (Note 6)
Unreserved
Fund balances:
Reserved for -
Employees' retirement system
Debt service (Note 3)
Undesignated
Total fund equity
Total liabilities and fund equity
Note: The accompanying Notes to Financial Statements are an integral part of this statement.
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CITY OF OKEECHOBEE, FLORIDA
COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES _
ALL GOVERNMENTAL FUND TYPES
particulars
Revenues:
Taxes
Intergovernmental
Charges for services (Note 1)
Licenses and permits
Fines and forfeitures
Interest income
Miscellaneous
Total revenues
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Expendi ture s :
Public safety
General government
Transportation
physical environment
Health, human services
parks and recreation
Intragovernment service - Public works
Debt service:
Principal retirement
Interest charges
Professional fees
Total expenditures
Excess (Deficiency) of Revenues Over Expenditures
Other Financing Sources (Uses):
Proceeds from long-term debt
Operating transfers in
Operating transfers out
Total other financing sources (Uses)
Year Ended September 30, 1983
Excess (Deficiency) of Revenues and Other Financing
Sources Over Expenditures and Other Uses (carried forward)
General
$ 538,163
464,418
272,230
54,974
20,493
25,091
21,985
1,397,354
759,656
255,524
389,792
198,804
15,489
2,783
22,431
1,644,479
( 247,125)
95,000
89,640
184,640
( 62,485)
Revenue
Sharing
$
76,949
4,663
81,612
81,612
( 90,446)
( 90,446)
( 8,834)
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Debt
Service
$ 9,040
10,713
19,753
15,000
24,150
500
39 , 650
( 19,897)
( 19,897)
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Total
(Memorandum
Only)
$ 547,203
541,367
272 ,230
54,974
20,493
40,467
21,985
1,498,719
759,656
255,524
389,792
198,804
15,489
2,783
22,431
(
15,000
24,150
500
1,684,129
185,410)
95,000
89,640
( 90,446)
94, 194
(
91,216)
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CITY OF OKEECHOBEE, FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES _
ALL GOVERNMENTAL FUND TYPES - Continued
Year Ended September 30, 1983
particulars
Total
Revenue Debt (Memorandum
General Sharing Service Only)
( 62,485) ( 8,834) ( 19,897) ( 91,216)
322,131 95,664 117,237 535,032
$ 259,646 $86,830 $ 97,340 $ 443,816
Excess (Deficiency) of Revenues and Other Financing
Sources Over Expenditures and Other Uses (Brought forward)
Fund Balances September 30, 1982
Fund Balances, September 30, 1983
Note: The accompanying Notes to Financial Statements are an integral part of this statement.
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CITY OF OKEECHOBEE, FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES _
BUDGET AND AcrUAL - GENERAL AND SPECIAL REVENUE FUND TYPES
Year Ended September 30, 1983
General Fund Revenue Sharing Totals (Memorandum Only)
Variance Variance Variance
Favorable Favorable Favorable
Particulars Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable)
Revenues:
Taxes $ 517,500 $ 538,163 $20,663 $ $ $ $ 517,500 $ 538 ;1163 $20,663
Intergovernmental 482,350 464,418 ( 17,932) 80,000 7 6 , 949 ( 3,051) 562,350 541 P 6 7 ( 20, 983 )
Charges for services 261,546 272 ,230 10,684 261,546 272,230 10,684
Licenses and permits 33,610 54,974 21,364 33,610 54,974 21,364
Fines and forfeitures 20,800 20,493 ( 307) 20,800 20,493 ( 307)
Interest income 50,000 25,091 ( 24,909) 4,663 4,663 50,000 29,754 ( 20,246)
Miscellaneous 13 ,850 21,985 8,135 13,850 21,985 8,135
Total revenue 1,379,656 1,397,354 17,698 80,000 81,612 1,612 1,459,656 1,478,966 19,310
Expenditures:
Public safety 699,974 759,656 ( 59,682) 699,974 759,656 ( 59,682)
General government 278,484 255,524 22,960 278,484 255,524 22,960
Transportation 378,275 389,792 ( 11,517) 378,275 389,792 ( 11,517)
physical environment 188,000 198,804 ( 10,804) 188,000 198,804 ( 10,804)
Health, human services 20,844 15,489 5,355 20,844 15,489 5,355
parks and recreation 29,921 2,783 27,138 29,921 2,783 27,138
Intragovernment service - Public works 24,314 22,431 1 , 883 24,314 22,431 1,883
Total expenditures 1,619,812 1,644,479 ( 24,667) 1,619,812 1,644,479 ( 24,667)
Excess (Deficiency) of revenues over expenditures ( 240,156) ( 247,125) ( 6,969) 80,000 81,612 1,612 ( 160,156) ( 165,513) ( 5,357)
Other financing sources (Uses):
Proceeds from long-term debt 95,000 95,000 95,000 95,000
Operating transfers in 140,226 89,640 ( 50,586) 140,226 89,640 ( 50,586)
Operating transfers out ( 80,000) ( 90,446) ( 10,446) ( 80,000) ( 90,446) ( 10,446)
Total other financing sources (Us es) 1401226 1841..640 44,414 U~OOO) ( 90,446) ( 10,446) 60,226 94 , 194 33 , 968
Excess (Deficiency) of revenues and other financing
sources over expenditures and other uses ( 99~930) ( 62,485) 37,445 ( 8,834) ( 8,834) ( 99,930) ( 71,319) 28,611
Fund balances, September 30, 1982 322~131 322-1.,131. 95,664 95.664 417,795 417,795
Fund balances, September 30, 1983 $ 222,201 $ 259,646 $37,445 $95,664 $86,830 ($ 8,834) $ 317,865 $ 346,476 $28,611
Note:
The accompanying Notes to Financial Statements are an integral part of this statement.
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CITY OF OKEECHOBEE, FLORIDA
COMBINED STATEMENT OF REVENUES. EXPENSES AND CHANGES IN RETAINED
EARNINGS/FUND BALANCES - ALL PROPRIETARY FUND-TYPES AND EMPL0YEEPENSION TRUST FUNDS
Year Ended September 30, 1983
particulars
Proprietary
Fund
Water
and Sewer
Revenues:
charges for services
Interest income
Contributions
Other operating income
Total operating revenues
Expenses:
Personal services j
Contractual services'
Depreciation
Materials and operating supplies'
Utilities
Rentals and leases,
Insurance
Repairs and maintenance -
Administrative supplies and expense
Contribution refunds
Retirement benefits paid
General Fund administrative charge (Note 1)
Total operating expenses
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Operating income (Loss)
Nonoperating income (Expense):
Interest income
Interest expense
Impact fees
Miscellaneous
Total nonoperating income, net
Income before operating transfers
Operating transfers in
Net income (Carried forward)
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Fiduciary
Funds
Employee
Pension
Trust Funds
$
53,268
104,591
157,859
10,590
1,371
11 , 961
145,898
145,898
145,898
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Total
(Memorandum
only)
$ 889,586
53,268
104,591
342
1,047,787
316,046
23,953
123,277
142,220
78,533
629
12,454
138,676
9,196
10,590
1,371
53 ,471
910,416
137 ,371
52,912
( 23,226)
26,775
12,010
68,471
205,842
806
206,648
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CITY OF OKEECHOBEE, FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED
EARNINGS/FUND BALANCES - ALL PROPRIETARY FUND TYPES 'AND EMPLOYEE PENSION TRUST FUNDS _
Continued
Year Ended September 30, 1983
Particulars
Fiduciary
Proprietary Funds
Fund Employee Total
Water Pension (Memorandum
and Sewer Trust Funds only)
60,750 145,898 206,648
1,333,813 475J 186 1,808,992
$1,394,563 $621,084 $2,015,647
Net income (Brought forward)
Retained earnings/fund balanCE at September 30, 1982
Retained earnings/fund balance, September 30, 1983
Summary of retained earnings/fund balance
reserved for =
Revenue bond retirement
Depreciation fund
Employee retirement system
Unreserved
$ 33,600 $ $ 33,600
41,760 41,760
621,084 621,084
1,319,203 1 ,319,203
$1,394,563 $621,084 $2,015,647
Note: The accompanying Notes to Financial Statements are an integral part of this statement.
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CITY OF OKEECHOBEE, FLORIDA
COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION
ALL PROPRIETARY FUND TYPES AND PENSION TRUST FUNDS
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Year Ended September 30, 1983
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Proprietary
Fund
Water
and Sewer
Particulars
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Sources of Working Capital:
Net income for the year
Add: Charges which did not use working capital:
Depreciation
Working capital provided by operations
Contributed capital
Total sources of working capital
$ 60,750
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123,277
184,027
25,163
209,190
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Uses of Working Capital:
Reclassification of long-term debt to short-term
Purchases of property, plant and equipment
Payments of long-term debt
Increase in restricted assets
Total uses of working capital
1,000
304,620
25,000
33,550
364,170
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Increase (Decrease) in working capital
($154,980)
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Elements of Increase (Decrease) in Working Capital:
Increase (Decrease) in current assets:
Cash
Investments
Accounts receivable
Due from other funds
Total
Increase (Decrease) in current liabilities:
Accounts payable
Notes payable
Accrued interest
Customers' deposits
Due to terminated employees
Total
($ 90,657)
( 13,080)
( 44,707)
6,399
( 142,045)
1,667
1,000
( 484)
10,752
12,935
Increase (Decrease) in working capital
($154,980)
Fiduciary
Funds
Employee
Pension
Trust Funds
$145,898
145,898
145,898
$145,898
$ 11,322
138,986
( 4,724)
145,584
( 314)
( 314)
$145,898
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Total
(Memorandum
only)
$206,648
123,277
329,925
25,163
355,088
1,000
304,620
25,000
33,550
364,170
($ 9,082)
($ 79,335)
125,906
( 44,707)
1,675
3,539
1,667
1,000
( 484)
10,752
C 314)
12,621
($ 9,082)
Note: The accompanying Notes to Financial Statements are an integral part of this statement.
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CITY OF OKEECHOBEE, FLORIDA
NOTES TO FINANq:.AL STATEMENTS
Year Ended September 30, 1983
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Note 1 - Description of Funds and Summary of Significant Accounting Policies:
It is the policy of the City of Okeechobee to conform its accounting
policies to generally accepted accounting principles applicable to governmental
units. The following is a summary of the more significant principles and
practices used in the preparation of these financial statements.
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Fund Accounting - The accounts of the City are organized on the basis
of funds and groups of accounts, each of which is considered to be a separate
accounting entity. The operations of each fund are accounted for by providing
a separate set of self-balancing accounts which comprise its assets, liabilities,
fund balances/retained earnings, revenues and expenditures/expenses. The various
funds are grouped by type in the financial statements as follows:
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General Fund - The General Fund accounts for all transactions not
required to be accounted for in another fund. All general property taxes,
franchise fees, utilities taxes, licenses, fees and fines are recorded in
this fund. Operational expenditures and capital outlays of general govern-
ment, public safety, public services and other departments are paid for
through this fund.
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Reimbursements to General Fund for Administrative Charges - General
government expenditures include certain administrative costs of operating the
City's water and sewer system. Such costs include accounting, collections,
data processing, etc. Since a direct cost allocation plan has not been
devised, City management personnel have estimated and charged the water and
sewer operations $53,471 for the year ended September 30, 1983, which amount
is included in revenue in the general fund as charges for services.
Federal Revenue Sharing Fund - The Federal Revenue Sharing Fund is
used to account for monies received under State and Local Fiscal Assistance
Act of 1972, as amended, and related expenditures.
Debt Service Fund - The Debt Service Fund is used to account for
the receipt of property taxes levied to pay the principal and interest on
the City's general obligation bonds.
ProQrietary Fund - Proprietary funds are used to account for the
financing of services to the general public where the intent of the governing
body is that the costs (all expenses including depreciation) of providing
certain goods and services be financed or recovered primarily through user
charges. The proprietary fund used by the City is the Water and Sewer
System, which accounts for the construction, operation and maintenance of
the City-owned water and sewer system.
Fiduciary Fund - The Fiduciary Fund is used to account for the
assets held by the City as trustee for the administration of the police,
firemen and general employees pension trust plans.
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CITY OF OKEECHOBEE. FLORIDA
NOTES~TO FINANCIAL STATEMENTS - Continued
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Year Ended September 30, 1983
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Note 1 - Description of Funds and Summary of Significant Accounting policies:
(Cont'd)
General Fixed Assets Group of Accounts - This group of accounts is
used to maintain control and cost information on City-owned property, plant
and equipment other than those of the proprietary fund.
General Long-Term Debt Group of Accounts - This group of accounts
is used to record long-term debt which is backed by the full faith and credit
of the City and other long-term debt which is secured by general fund revenues
and the proceeds of which are not used in proprietary fund activity.
Memorandum Totals - The columns captioned "Total - Memorandum Only"
are not necessary for a fair presentation of the financial statements, but
are presented as additional memorandum data and do not present consolidated
financial information.
Measurement Focus - Governmental (General, Federal Revenue Sharing and
Debt Service) fund types are accounted for on a "financial flow" basis. Ac-
cordingly, only current assets and current liabilities are included on their
balance sheets, and the reported fund balances provide an indication of available
spendable or appropriable resources. Operating statements report increases
(revenues) and decreases (expenditures) in available spendable resources.
Propri€:tary (Enterprise) and Nonexpendable Pension Trust fund types
are accounted for on a "cost of services" basis. Accordingly, all assets and
liabilities are included on their balance sheets and the reported fund equities
provide an indication of the economic net worth of the funds. Operating state-
ments report increases (revenues) and decreases (expenses) in total economic
net worth.
Appropriations and other commitments are recognized as designations
or reserves of fund balance or retained earnings at the end of the fiscal year.
These items are recognized as expenditures or expenses in the period in which
the actual goods or services are received and a liability is incurred.
Funds which are similar by type but not homogeneous are combined.
Interfund transactions and balances are not eliminated on funds which are com-
bined rather than consolidated.
Basis of Accounting - Basis of Accounting refers to when revenues and
expenditures are recognized in the accounts and reported in the financial
statements. Basis of accounting relates to the timing of the measurements made,
regardless of the measurement focus applied.
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CITY OF OKEECHOBEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30, 1983
Note 1 - Description of Funds anQ~Summary of Si~nificant Accounting policies:
(Cont'd)
All governmental funds are accounted for using the modified accrual
basis of accounting. Revenues are recognized when they become measurable and
available as net current assets. Uncollected ad valorem taxes are not recorded
as revenues because, although measurable, they are not available until collected.
Accounts receivable for refuse collection and interest on investments are
recorded as revenues as earned.
Expenditures are generally recognized, under the modified accrual basis,
in the accounting period in which the liability is incurred. Exceptions to the
rule include accumulated unpaid employee vacation and sick pay, and principal
and interest on general long-term debt which is recognized when due.
proprietary Funds and Pension Trust Funds are accounted for on the
accrual basis. Revenues are recognized when earned and expenses are recognized
when they are incurred. Unbi11ed water and sewer utility service revenues
($27,000 at September 30, 1983) are recorded at year end.
Budgets - The City enacts an annual budget, by ordinance, after con-
ducting the required public hearings. The budget adopted is on a basis consistent
with the accounting principles followed by the City.
Budgets presented in the accompanying financial statements include all
amendments made to the original adopted budget.
Investments - Investments, consisting of certificates of deposit and
repurchase agreements are stated at cost which approximates market.
pr~erty, plant and Equi~ent - property, plant and equipment acquired
for general governmental purposes are recorded as expenditures in the General
Fund and capitalized at cost in the general fixed assets group of accounts. No
depreciation has been provided on general fixed assets. The utility plant and
equipment utilized in the .City's water and sewer system is stated at cost.
Additions, improvements and Expenditures that significantly extend the life of
an asset are capitalized.
Repairs and maintenance costs which do not extend the lives of assets
are charged to operations when incurred. Depreciation has been provided
principally at a composite rate of 2-1/2%.
t
Inventories - Inventories of motor fuels are stated at cost determined
on a first-in, first-out basis.
r==---~-----==_:=:::=~-":-=-::::::::::::-_~::-:
14
CITY OF OKEECHOBEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30, 1983
".
Note 2 - Property, plant and Equlpment:
The carrying value. of property, plant and equipment recorded in the
water and sewer fund at September 30, 1983 was as follows:
t
,
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,
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I
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~
~
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.
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.
Utility plant in service -
Balance, September 30, 1982
Acquired during the year ended
September 30, 1983 (Including
construction-in-progress in the
amount of $131,592)
Total
Less: Accumulated depreciation
$4,242,229
304,620
4,546,849
1!..165L295
Net book value
$3,381,554
The carrying value of property, plant and equipment at September 30,
1982 included $4,127,219 in carrying value of assets acquired prior to October 1,
1981. Depreciation expense for the year ended September 30, 1983 was $123,277.
Construction-in-progress in the amount of $131,592 at September 30, 1983
primarily represents engineering fees associated with a new wastewater treatment
facility to be constructed by the City, (See Note 8).
A summary of changes in General Fixed Assets follows:
Balance Balance
October 1L 1982 Additions Retirements SeQtember 30, 1983
Land and improvements
Buildings and
improvements
Furnishings and equipment
Rolling stock
$ 536,695
$127,881
$
$ 664,577
133,748
200,718
_l~~~52
85,368
7,962
~._~4 ~568
42-647
219,116
208,680
324 L38Q
Total
$1,175,620
$245,779
$4,647
$1,416,753
.----J
i
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I
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l
.~
~
15
CITY OF OKEECHOBEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30, 1983
Note 3 - Long-Term Indebtedness:
Long-term indebtedness at September 30, 1983 was composed of the
following:
particulars Amount
General Long-Term Debt
$480,500 Original issue General Obligation
Bonds, due in annual installments of
$15,000 to $35,000 through July 1, 1996
Notes and capitalized lease obligation:
7% capital improvement notes to a bank,
due $9,500 semiannually plus interest,
through May, 1988 secured by and payable
from a pledge of the City's share of
one half cent Florida State sales tax
8% capital improvement note to a bank,
due $9,167 annually, plus interest,
through 1988; collateralized by funds
other than ad valorem taxes
8.5% Installment note, due $1,123 monthly
including interest through January 1,
1987; collateralized by equipment
capitalized lease obligation, payable $275
monthly including interest at 18% through
November, 1986
$95,000
45,833
37,585
$340,000
7,768 186,186
$526,186
Total general long-term debt
particulars
Revenue Bonds
$350,000 original issue 1958 Water and
Sewer Serial Bonds, due in annual install-
ments of $14,000 to $23,000 through
July 1, 1988; interest at 4-1/2%
$400,000 original issue 1972 Water and
Sewer Serial Bonds, due in annual
installments of $5,000 to $24,000
through January 1, 2012; interest at 5%
Total revenue bonds
Amount
$100,000
360,000
$460,000
rr====-"==-~-=----====-"--cc--cc===" '" ~ -c-_-c~
II
16l!
I
CITY OF OKEECHOBEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30, 1983
Note 3 - Long-Term Indebtedness:'" (Cont 'd)
Outstanding general obligation bonds above are redeemable at the option
of the City on any interest date by payment of a premium of 3 percent through
1986; 2 percent between 1986-91 and 1 percent after July 1, 1991. Interest is
payable at 7.5 percent on bonds maturing through 1982; at 6.75 percent for bonds
maturing 1983 through 1990; at 6.875 percent for bonds maturing 1991 through
1995, and at 6.75 percent for bonds maturing in 1996.
The 1958 water and sewer revenue bonds are secured by the net revenues
of the water and sewer system and utilities service taxes. The bonds are re-
deemable in whole or in part in inverse order of maturity on any interest date
at par and accrued interest plus a redemption premium of 4-1/2%.
The 1972 water and sewer revenue bonds are secured by a pledge of the
net revenues of the water and sewer system and cigarette taxes. The bonds are
subordinate to the outstanding 1958 water and sewer revenue bonds and are re-
deemable in whole or in part in inverse order on any interest date at par and
accrued interest.
A summary of the changes in all long-term debt above for the year ended
September 30, 1983 is as follows:
,,~..^--
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.
.
.
.
.
.
.
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.
.
.
II
~_~=-=======-_=~-~-~ccccc._==-~'. -~~.-"=c-='-c-cc~=--c-c_~
171
I
CITY OF OKEECHOBEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30, 1983
Note 3 - Long-Term Indebtedness; (Cont'd)
proprietary
Water and Sewer
Revenue Bonds
1972
Series Total
Total
Long-Term
Debt
General
Obligation
Bonds
General Long-Term Debt
Notes and
capitalized
Lease
Total
1958
Series
Balance, September 30, 1982
$355,000
$113 , 254
$468,254
$119,000
$366,000 $485,000
$953,254
Additions
95,000
95,000
95,000
Balance, September 30, 1983
15,000
$340,000
22,068
$186,186
37,068
$526,186
19,000
6,000
$360,000
25,000
$460,000
62,068
$986,186
payments during the year
$100,000
Annual principal requirements for the
next five years are as follows:
Year ended September 30,
1984
1985
1986
1987
1988
Thereafter
Total
$ 20,000 $ 40,889 $ 60,889 $ 20,000 $ 6,000 $ 26,000 $ 86,889
20,000 42,232 62,232 21,000 6,000 27,000 89,282
20,000 43,737 63,737 22,000 6,000 28,000 91,737
20,000 31,163 51,163 23,000 7,000 30,000 81,163
25,000 28,165 53,165 14,000 7,000 21,000 74,165
235,000 235,000 328,000 328,000 563.000
$340,000 $186,186 $526,186 $100,000 $360,000 $460,000 $986,186
=~~c-J
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~
,
.
.
CITY OF OKEECHOBEE, FLORIDA
NOTES TO FINANCIAL . STATEMENTS ~. Continued
Note 3 - Long-Term Indebtedness: (Cont'd)
The annual requirements to amortize all debt
outstanding as of September 30, 1983, including interest
payments totalling $561,044 are as follows:
Year ended September 30,
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Total
Year Ended September 30, 1983
General Long-Term Debt
General Notes and
Obligation Capitalized
Bonds Lease Total
.. proprietary
Water and Sewer
Revenue Bonds
1958 1972
Series Series Total
$ 43,138 $ 56,063 $ 99,201 $ 24,500
41,788 52,872 94,660 24,600
40,437 50,809 91,246 24,655
39,087 36,732 75,819 24,665
42,738 29,816 72.,554 14,630
41,050 41,050
39,363 39,363
37,675 37,675
40,956 40,956
38,894 38,894
36,831 36,831
39,769 39,769
37,362 37,362
$519,088
$226,292
$745,380
$113,050
.~._='.'.'~-~'C=..'--
181
I
Total
Long-T.erm
Debt
$ 24,000 $ 48,500 $ 147,701
23,700 48,300 142,960
23,400 48,055 139,301
24,100 48,765 124,584
23,750 38,380 110,934
23,400 23,400 64,450
24,050 24,050 63,413
23,650 23,650 61,325
24,250 24,250 65,206
23,800 23,800 62,694
24 ,350 24,350 61,181
23,850 23,850 63,619
24,350 24,350 61,712
23,800 23,800 23,800
24,250 24,250 24,250
23,650 23,650 23,650
24,050 24,050 24,050
23,400 23,400 23,400
23,750 23,750 23,750
23,050 23,050 23,050
23,350 23,350 23,350
22,600 22,600 22,600
22,850 22,850 2;2,850
23,050 23,05(J SO
23,200 23, 0
23,300 23,
24,350 24-
24,300 2
25,2QQ
$688,800
~
r~-- "-
CITY OF OKEECHOBEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30, 1983
Note 3 - Long-Term Indebtedness: ~ont'd)
At September 30, 1983, there was $97,340 available in the Debt
Service Fund to service the general obligation bonds.
Note 4 - Contributed Capital:
The source and additions to contributed capital are as follows:
Source
Balance Balance
September 30, 1982 Additions SeEtember 30, 1983
$ 221,413 $25,163 $ 246,576
338,761 338,761
71,160 71,160
417,740 417 , 740
619,572 619,572
100,000 100,000
275,000 275,000
$2,043,646 $25,163 $2,068,809
Connection fees
Developers
Federal grant
Local Public Works Grant
Federal Revenue Sharing Funds
General Fund
Okeechobee Beach Water
Association
Total
Note 5 - Revenue Bond Reserve and Retirement Funds:
The 1958 and 1972 Water and Sewer 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 addition, 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, 1983, the amounts required and the amounts
on deposit are as follows:
1958 Revenue 1972 Revenue
Bonds Bonds Total
Maximum reserve $24,500 $23, L.UO $47,900
Deposits for bond principal and
interest requirements 6,125 18,000 24,125
Balance of construction funds
required to be deposited in
Sinking Fund 2 ,380 2,380
Reserve Balance - September 30,
1983 $30,625 $43,780 $74,405
At September 30, 1983 amounts included in restricted assets (cash and
investments) in the accompanying combined balance sheet for these requirements
totalled $74,405.
11
19 I
fW
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-
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20
CITY OF OKEECHOBEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30, 1983
Note 6 - Depreciation Fund:
The 1958 Water and Sewer Revenue Bond Resolution requires that a De-
preciation Fund be maintained. The minimum amount required is 5% of gross water
and sewer revenues collected during the preceding calendar year. The Fund may
be used, with the approval of the City Council, to pay for capital additio~s or
unforeseen emergencies. At September 30, 1983, investments included as restricted
assets in the accompanying combined balance sheet for the Depreciation Fund
totalled $41,760.
..
~
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~
~
.
Note 7 - Pension plans:
The City has three pension plans covering substantially all the City's
regular employees. Total pension expense for the year was $30,139 including,
with respect to the general employees benefit plan, amortization of past service
cost over a 33 year period. It is the City's policy to fund pension expense as
determined by actuarial valuation. Mandatory employee contributions to the
plans are at the rate of 5% of earnings. Accumulated employee contributions
totalled $177,674 at September 30, 1983 as follows:
General
Police
Fire
$119,721
41,162
16,791
Total
$177 ,674
The plans covering the City's firefighters and police officers are
also funded by the State of Florida from a tax on fire insurance premiums
collected. State contributions to these plans totalled $6,123 and $19,168,
respectively, during the year ended September 30, 1983.
A summary of the actuarial present value of accumulated plan benefits
and plan net assets as of October I, 1982 (the most recent valuation date) is as
follows:
General Po lice Fire
Vested Benefits:
Members currently receiving payments $ 14,993 $ $
Other members 119 , 631 49,231 13,163
Total vested benefits 134,624 49,231 13,163
Non-Vested Benefits 18,446 3,737 761
Total Actuarial Present Value of Accumulated
plan Benefits $153.070 $ 52,,968 $13,924
Net Assets Available for Benefits $235,622 $173,430 $66,134
Actuarial Assumed Investment Rate of Return 6% 6% 6%
- - -
21
CITY OF OKEECHOBEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30, 1983
~ .~~
Note 7 - Pension plans: (Contrd)
Principal actuarial assumptions used in the valuation above are sum-
marized as follows:
Mortality - The 1951 Group Annuity Mortality Table projected by
Scale C to 1970 (regraduated); females set back 5 years.
\>,
Interest - 6% per year compounded annually, net expenses.
Retirement Age - 60 for police officers and firefighters, 65 for all
other employees, immediately if over assumed retirement age.
SatarYlncreases - 5/~ per year urttil the assumed retirement age.
Funding Method - Frozen Entry Age Actuarial Cost Method.
Note 8 - Commitments and Contingencies:
Commitments - On April 18, 1983, the City passed an ordinance authori-
zing issuance of bonds not to exceed $3,212,900 for improvements to the City's
wastewater treatment and collection systems. Proceeds of the bond issue are to
be used in the refunding of the City's 1958 Revenue Bonds and for construction
costs. As of September 30, 1983, the bonds had not been issued.
On October 3, 1983, in the City Council's regular meeting, application
for a loan from Farmer's Home Administration totaling $2,212,900 and a grant from
the Environmental Protection Agency totaling $33,080 in connection with the pro-
ject was approved by the City Council.
Litigation - The City is plaintiff in a suit seeking reconstruction or
replacement of a c1earwel1 at an estimated cost of $500,000. It is anticipated
that future judgments will be in the City's favor.
Lease Obligation - The City is obligated under a noncancellable capital
lease for certain office equipment. The lease expires in November, 1986 at which
time the equipment becomes the property of the City upon payment of $1. The cost
of the equipment ($10,832) has been capitalized as furnishings and equipment in
General Fixed Assets. Future lease payments required have been included in Note 4
(principal payments, notes and capitalized lease).
Accrued Vacation and Sick Leave Benefits - Full-time and permanent
employees accrue a paid vacation period ranging from six days after six months
of continuous service up to 20 days after fifteen years of service. Unused
vacation may be accumulated up to a maximum of thirty days.
Sick leave for employees is accumulated at the rate of 12 days per
year. payment for unused sick leave upon termination of employment may be made
for employees with 10 years or more of continuous service at a rate of 25% of
the unused sick leave balance.
22
CITY OF OKEECHOBEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30, 1983
~
Note 8 - Commitments and Contingencies: (Cont'd)
Accumulated unpaid vacation and sick pay to which employees would be
entitled upon termination totalled $41,194 and $10,863, respectively, at
September 30, 1983. Vacation and sick leave benefits are charged to expense as
paid by the City.
~t/ f/fldey gc-i~
~~~~UvnLJ
427 North Magnolia Avenue
p. 0. Box 3031
Orlando, Florida 32802
(305) 423-3426
700 20th Street
P. 0. Box 249
Vera Beach, Florida 32961
(305) 562-4158
305 East North Park Street
P. 0. Box 368
Okeechobee, Florida 33472
(813) 763-0214
~ .~~
200 North West Avenue L
p. 0. Box 247
Belle Glade, Florida 33430
(305) 996-5525
October 26, 1983
To the Honorable Mayor and
Members of the City Council
City of Okeechobee
Okeechobee, Florida
Our examination of the combined financial statements of the
City of Okeechobee, Florida was made primarily for the purpose of
forming the opinion included on page 1 of this report. The data
contained in pages 24 to 38 in this report are presented for purposes
of additional analysis and are not a required part of the combined
financial statements of the City of Okeechobee, Florida. The in-
formation has been subjected to the audit procedures applied in the
examination of the combined financial statements and in our opinion,
is fairly stated in all material respects in relation to the combined
financial statements taken as a whole.
23
CITY OF OKEECHOBEE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES
(Budget and Actual)
Year Ended September 30, 1983
~.
Taxes:
Ad valorem taxes
Franchise fees
Utility service taxes
Variance
Favorable
Budget Actual (Unfavorable)
$ 250,000 $ 266,430 $16,430
148,500 152,921 4,421
119,000 118,812 ( 188)
517,500 538,163 20,663
Intergovernmental Revenues:
State shared revenue:
Cigarette tax
State revenue sharing
Mobile home licenses
1/2(; Sales tax
Alcoholic beverage licenses
Gasoline tax refund
Shared revenues from other
local units:
Road and bridge
County occupational licenses
Dual tax - County
80,000 77 ,333 ( 2,667)
176,000 176,013 13
1,000 1,707 707
90,000 75,914 ( 14,086)
800 1,326 526
1,000 1,331 331
16,318 15,829 ( 489)
4,000 4,325 325
113,232 110,640 ( 2,592)
482,350 464,418 ( 17,932)
7,200 7,200
200,000 210,793 10,793
54,346 54,237 ( 109)
261,546 272,230 10,684
25,000 35,768 10,768
6,610 14,836 8,226
2,000 4,370 2}.}70
33,610 54,974 21,364
20,000 19,488 ( 512)
500 1,005 505
300 ( 300)
20,800 20,493 ( 307)
Charges for Services:
Fire protection service
Sanitation fees
Miscellaneous
Licenses and Permits:
occupational licenses
Building permits
Competency cards
Fines and Forfeitures:
Court fines
police education
Code enforcement fines
24
----------
.------
CITY OF OKEECHOBEE, FLORIDA
GENERA L FUND
SCHEDULE OF REVENUES - Continued
(Budget and Actual)
Year Ended September 30, 1983
>c-
"
Budget
Actual
Variance
Favorable
(unfavorable)
Interest Earnings
50,000
25,091
(~, 909)
Miscellaneous:
State Street Sign Grant 10,050 10,050
Other 1,000 5,966 4,966
Sale of assets 2,751 2,751
Rents and royalties 2,800 2,775 25)
Refunds of prior year expenditures 443 443
13 , 850 21,985 8,135
Total $1,379,656 $1,397,354 $17,698
25
CITY OF OKEECHOBEE} FLORIDA
GENERAL FUND
SCHEDULE OF EXPENDITURES
(Budget and Actual)
Year Ended September 30, 1983
..
Budget
Actual
Variance
Favorable
(Unfavorable)
Public Safety:
Law enforcement:
Personal services $ 334,586 $ 337,725 ($ 3,139)
Operating expenses 72,975 59,487 13 ,488
capital out lay _-14,500 100,780 ( 86,280)
Total law enforcement 422,061 497,992 ( 75,931)
Fire control:
Personal services 153,859 142,625 11,234
Operating expenses 61,801 57,060 4,741
capital outlay 21,000 19,844 1,156
Total fire control 236,660 219,529 17,131
Protective inspections:
Personal services 33,215 35,787 ( 2,572)
Operating expenses 7,538 6,054 1,484
Capital outlay 500 294 206
Total protective inspections 41,253 42,135 ( 882)
Total public safety 699,974 759,656 ( 59,682)
General Government:
Legislative:
Personal services 23,320 21,103 2,217
Operating expenses 28,072 30,074 ( 2,002)
Capital outlay 5,222 61 5,161
Total legislative 56,614 51,238 5,376
Executive:
Personal services 47,454 47,946 ( 492)
Operating expenses 9,597 7,798 1,799
Capital outlay 121 83 38
Total executive 57 ,172 55,827 1,345
Financial and Administrative:
Personal services 93,491 93,221 270
Operating expenses 41,522 32,377 9,145
Capital outlay 21,220 15,994 5,226
Total financial and administrative 156,233 141,592 14,641
26
CITY OF OKEECHOBEE, FLORIDA
GENERAL FUND
SCHEDULE OF EXPENDITURES - Continued
(Budget and Actual)
Year Ended September 30, 1983
..
Budget
General Government: (Cont'd)
Comprehensive planning:
Personal services
Operating expenses
capital outlay
Total comprehensive planning
Judicial:
Personal services
Operating expenses
Capital outlay
Total judicial
Total general government
1,500
3,565
5,065
2,100
1,300
3,400
278,484
Transportation:
Road and street facilities:
Personal services
Operating expenses
Capital outlay
Total transportation, road
and street facilities
120,815
107,032
150,428
378,275
Physical Environment:
Garbage/solid waste control services:
Personal services
Operating expenses
Capital outlay
Total physical environment,
solid waste services
188,000
188,000
Human Services:
Health:
Personal services
Operating expenses
Capital outlay
Total human services, health
2,154
18,390
300
20,844
Actual
1,475
2,460
3,935
1,575
1,357
2,932
255,524
123,879
109,054
156,859
389,792
198,804
198,804
60
15,429
15,489
Variance
Favorable
(Unfavorable)
25
1,105
1,130
525
( 57)
468
22,960
( 3,064)
( 2,022)
( 6,431)
( 11,517)
( 10,804)
( 10,804)
2,094
2 , 961
300
5,355
27
4-
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29 l
I
CITY OF OKEECHOBEE, FLORIDA
PENSION TRUST FUNDS
COMBINING BALANCE SHEET
September 30, 1983
I
.
.
.
.
.
Police General
Officers' Firemen's Employees'
Retirement Retirement Retirement
ASSETS Fund Fund Fund _Total
Cash $ 8,884 $ 5,661 $ 20,539 $ 35, 084
Investments in savings certificates and
savings accounts (At cost, which
approximates market) 212,000 79,000 295,000 586,000
$220,884 $84,661 $315,539 $621,084
LIABILITIES AND FUND BALANCES
Liabilities:
Due to terminated employees $ $ $ $
I,
Fund balances: II
II
Reserved for retirement 220,884 84,661 315,539 621,084 II
$220,884 $84,661 $315,539 $621,084
I
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II
II
II
II
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II
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- - --- -. --_.,------:-::::-~--:::-==~-:-:-~~-=::_--:_--:,:--::--:-:-=-~-~:~-:-:-==-~:-====--~-'-
--~~
30
CITY OF OKEECHOBEE, FLORIDA
PENSION TRUST FUNDS
COMBINING STATEMENT OF REVENUES. EXPENS~S
AND CHANGES IN FUND BAL~NCES
Year Ended September 30, 1983
I
Police General
Officers' Firemen's Employees'
Retirement Retirement Retirement
Particulars Fund Fund Fund Total
Revenues:
State tax on insurance premiums $ 19,168 $ 6,123 $ $ 25,291
Employer's contributions 30,138 30,138
Employees' contributions 11,273 5,213 3 2 , 676 49,162
Interest earnings 19,163 7,191 26,914 53,268
Total revenues 49,604 18,527 89,728 157,859
Expens~:
Employees' contribution refunds 2,150 8,440 10,590
Retirement benefits paid 1,371 1,371
Professional fee
--
Total expenses 2~50 9,811 11,961
Revenues over (Under) expenses 47,454 18,527 79,917 145,898
Fund Balances, September 30, 1982 173,430 66,134 235,622 475,186
Fund Balances, September 30, 1983 $220,884 $84,661 $315,539 $621,084
I
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,
-==============~-
C~_ --- ---_ - -_ __ J
~=-,~~=,===-=-~-- ---------
31
CITY OF OKEECHOBEE, FLORIDA
PENSION TRUST FUNDS
COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION
Year Ended September 30, 1983
Police General
Officers' Firemen's Employees'
Retirement Retirement Retirement
Particulars Fund Fund Fund Total
Sources of Working Capital:
Excess of revenues over (Under) expenses -
Working capital provided by operattons $47,454 $18,527 $79,917 $145,898
Uses of Working Capital
Increase (Decrease) in working capital $47,454 $18,527 $79,917 $145,898
Elements of Increase in Working capital:
Cash $ 3,459 ($ 7,469) $15,332 $ 11,322
Investments, at cost 43,995 25,996 68,995 138,986
Due to employees 314 314
Due from other funds ( 4,724) ( 4,724)
Increase (Decrease) in working capital $47,454 $18,527 $79,917 $145,898
--===========-=-=:..-~
--.U
CITY OF OKEECHOBEE, FLORIDA
SPECIAL REVENUE FUND - FEDERAL REVENUE SHARING TRUST FUND
STATEMENT OF REVENUES AND EXPENDITURES
(Budget and Actual)
Year Ended September 30, 1983
~, - ~~
Particulars
Variance
Favorable
Budget Actual (Unfavorable)
$80,000 $76,949 ($ 3,051)
4,663 4,663
80,000 81,612 1,612
80,000 86,612 1,612
80,000 90,446 ( 10,446)
$ ($ 8,834) ($ 8,834)
Revenues:
Revenue sharing entitlements
Interest earnings
Total revenues
Expenditures
Revenues over expenditures
Other Financing Uses:
Operating transfers out
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CITY OF OKEECHOBEE, FLORIDA
DEBT SERVICE FUND
STATEMENT OF REVENUES AND EXPENDITURES
(Budget and Actual)
Year Ended September 30, 1983
<.
Variance
Favorable
Particulars Budget Actual l.Unfavorab1e}
Revenues:
Ad valorem taxes $ 7,973 $ 9,040 $1,067
Interest income 4,500 10,713 __6,213
Total revenues 12,473 19,753 7,280
Expenditures:
Bond principal retirements 15,000 15,000
Bond interest expense 24,150 24,150
Professional fees 500 500
Total expenditures 39,650 39,650
Expenditures over revenues ($27,177) ($19,897) $7,280
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CITY OF OKEECHOBEE, FLORIDA
WATER AND SEWER ENTERPRISE FUND
SCHEDULE OF CHANGES IN RESERVE ACCOUNTS
Year Ended September 30, 1983
Bond Reserve and
Retirement Fund
Total Depreciation Current Maximum
Reserved Fund Total Maturities Reserve
Balance - September 30, 1982 $106,940 $32,491 $74,449 $26,694 ~47,755
Additions
From Operat ing Fund:
Depreciation fund requirement 5,665 5,665
Bond principal requirement 26,000 26,000 26,000
Bond interest requirement 23,655 23,655 23,655
Interest earned on investment 7,627 3,604 4,023 4,023
Total additions 62,947 9,269 53,678 49,655 4 , 023
Deductions
payments for:
Bond principal 25,000 25,000 25,000
Bond interest 24,715 24,715 24,715
Transfer to Revenue Fund 4,007 4,007 129 3,878
Total deductions 53 , 722 53 , 722 49,844 3,878
Total 116,165 41,760 74,405 $26,505 $47,900
Liabilities payable
From restricted assets:
Matured bond interest coupons $ 180 $ $ 180
Current portion of bonds payable 26,000 26,000
Accrued interest 14,625 14,625
40,805 40,805
Balance - September 30, 1983 $ 75,360 $41,760 $33,600
35
Yft!~~gcf!~
~~~~~
427 North Magnolia Avenue
p. 0. Box 3031
Orlando, Florida 32802
(305) 423-3426
700 20th Street
P. 0. Box 249
Vero Beach, Florida 32961
(305) 562-4158
,-
305 East North Park Street
P. 0. Box 368
Okeechobee, Florida 33472
(813) 763-0214
200 North West Avenue l
p. 0. Box 247
Belle Glade, Florida 33430
(305) 996-5525
October 26, 1983
To the Honorable Mayor and
Members of the City Council
City of Okeechobee
Okeechobee, Florida
Our examination of the financial statements of the City of
Okeechobee, Florida was made for the purpose of forming the opinion on
the combined financial statements taken as a whole included else-
where herein.
The accompanying statistical information is presented for
additional analysis purposes and is not a required part of the
combined financial statements.
This information has not been subjected to the audit pro-
cedures that were applied in the examination of the combined financial
statements. Accordingly, we express no opinion on the statistical
information.
~~
'Certified P~ic Accountants
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CITY OF OKEECHOBEE, FLORIDA
SUMMARY OF INSURANCE COVERAGE
September 30, 1983
".
Description
Coverage
Fire and Extended Coverage:
Buildings and contents (90 Percent co-insurance _
$100 Deductible)
$1,682,780
Comprehensive General Liability:
Bodily injury
Property damage
Personal injury liability
300,000
300,000
300,000
Law Enforcement Liability:
Bodily injury, personal injury, property damage
($100 Deductible)
500/1,000,000
Workers' Compensation and Employer's Liability
Statutory Rates
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Vehicular Equipment:
Bodily injury
Property damage
Uninsured motorist
Collision ($100 Deductible)
Comprehensive ($50 Deductible)
100/300,000
50,000
35,000
ACV
ACV
Scheduled Property Floater ($250 Deductible)
242,687
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
Disability - Total
Disability - partial
10,000
5,000
100
50
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CITY OF OKEECHOBEE, FLORIDA
SCHEDULE OF ASSESSED VALUES. TAX LEVIES
AND RATES - LAST TEN YEARS
Real Personal Homestead
Year Property ... Total Exempt ion
. 'Eroperty
1983 $54,725,644 $12,102,101 $66,827,745 $17,665,060
1982 57,589,660 10,664,660 68,254,320 14,162,210
1981 57,036,510 10,475,123 67,511,633 14,061,980
1980 51,225,720 9,725,167 60,950,887 5,173,430
1979 34,756,690 8,787,664 43,544,354 5,034,700
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
Tax Levy and Applicable Rates
Levies Rates
Debt General
Debt General Service Government
Year Service Government Mills Mills
1983 $12,674 $261,497 .150 3 . 913
1982 8,668 291,007 .127 4.250
1981 8,574 286,924 .127 4.250
1980 36 , 3 86 335,209 .58 5.500
1979 40,248 179,780 .83 4.137
1978 41,852 168,054 .88 3.940
1977 43,989 157,519 1.11 4.510
1976 35,090 145,732 1.11 4.610
1975 37,848 135,945 1.11 4.590
1974 51,542 123,475 1.65 4.590
37
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38
CITY OF OKEECHOBEE, FLORIDA
SCHEDULE OF CERTAIN REVENUES AND UTILITY CUSTOMERS
LAST TEN YEARS
Revenues - other Than Property Taxes - General Fund
State
Revenue Fire
Sharing occupational Utility Fines and Franchise Department Anti-Recession
Year (Note) Licenses Taxes Forfeitures Fee Permits Interest payment Fund Miscellaneous
1983 $329,260 $40,138 $118,812 $20,493 $152,921 $14,836 $25,091 $ $ $21,985
1982 251,194 32,175 114,551 23,031 154,823 10,493 64,132 :.. 43,250
1981 257,325 22,228 108,286 13,813 137,759 23,459 69,536 4,240
1980 243,055 20,084 100,857 19,827 110,587 12,995 61,733 ,. 1,671
1979 251,212 20,551 93,107 18,125 93,232 10,856 76,173 2,035
1978 243,923 17,974 92,458 18,317 87,758 7,401 54,990 7,776 25,863 7,076
1977 235,839 18,783 82,858 24,817 72 , 821 8,349 49,860 35,000 51,084 16,662
1976 243,536 17,491 80,779 46,477 54,324 9,065 43,099 15,000 3,737
1975 237,607 15,725 68,100 42,202 103,703 8,530 31,801 15,000 6,456
1974 210,969 20,106 69,560 52,964 37,330 10,694 20,912 13 ,750 4,653
Connection
Sewer charges Water Water Water Total
Service Water Delinquent Interest on (In Aid of Hydrant Meters in Meters Meters Non- Water Unmetered Sewer
Year Charges Billings Charges Miscellaneous Investments Construction) Rental Operation Cut Off Operative Meters CUstomers Connections
1983 $130,189' $712,251 -/ $20,146" $11,219 $52,912 $25,163 $27,000 3,102 370 3,472 462
1982 109,448 701,272 17,372 22,324 73,181 13 ,400 27,000 3,129 130 13 3,272 462
1981 82,359 569,905 12,228 6,647 70,738 24,525 27,000 2,979 222 13 3,214 459
1980 79,453 535,973 9,580 6,732 53,657 15,650 23,280 2,849 272 1 3,122 450
1979 66,844 494,849 9,280 5,557 33,288 23,4,60 22,440 2,738 286 13 3 ,037 430
1978 59,724 436,451 9,140 3,658 30 , 961 19,975 25,000 2,612 236 19 2,867 428
1977 59,506 413,666 10,220 2,838 18,225 13,660 25,000 2,454 281 6 2,741 10 424
1976 49,867 357,349 7,404 47,046 14,289 10,965 25,000 2 , 3 94 268 1 2,663 29 423
1975 33,034 249,405 6,514 3,266 13,056 9,400 25,000 2,353 234 11 2,598 410
1974 35,181 244,293 6,430 2,988 12,073 13,467 25,000 2,228 267 1 2,496 392
Note - Includes additional two-cent cigarette tax and 1/2 cent sales tax.
--.--- .._----_.-.._--_.,--_._~---_._-_..__.-
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CITY OF OKEECHOBEE, FL. !'!
MANAGEMENT LETTE!
Year Ended September 30..
..", "I 'l I'! ,,'
rt!~~gc~~
~~~~
427 North Magnolia Avenue
p. 0. Box 3031
Orlando, Florida 32802
(305) 423-3426
700 20th Street
P. O. Box 249
Vero Beach, Florida 32961
(305) 562-4158
..
305 East North Park Street
P. 0. Box 368
Okeechobee, Florida 33472
(813) 763-0214
200 North West Avenue L
p. 0. Box 247
Belle Glade, Florida 33430
(305) 996-5525
October 26, 1983
To the Honorable Mayor and Members
of the City Counsel
City of Okeechobee
Okeechobee, Florida
We have examined the combined financial statements of the
City of Okeechobee as of and for the year ended September 30, 1983,
and have issued our report thereon dated October 26, 1983. As part
of our examination, we made a study and evaluation of the City's
system of internal accounting control to the extent we considered
necessary to evaluate the system as required by generally accepted
auditing standards. The purpose of our study and evaluation was to
determine the nature, timing, and the extent of the auditing pro-
cedures necessary for expressing an opinion on the City's financial
statements. Our study and evaluation was more limited than would
be necessary to express an opinion on the system of internal account-
ing control taken as a whole.
Management of the City of Okeechobee is responsible for
establishing and maintaining a system of internal accounting control.
In fulfilling this responsibility, estimates and judgments by man-
agement are required to assess the expected benefits and related
costs of control procedures. The objectives of a system are to
provide management with reasonable, but not absolute, assurance that
assets are safeguarded against loss from unauthorized use or dis-
position, and that transactions are executed in accordance with
management's authorization and recorded properly to permit the prep-
aration of financial statements in accordance with generally accepted
accounting principles.
2
Limitations in any system of internal
irregulE'rities may nevertheless occur
'ojection of any evaluation of the system
:0 the riBk that procedures may become
in conditions or that the degree of
; may detl~riorate.
ltion madl~ for the limited purpose
lph would not necessarily disclose all
;tem. ACI:ordingly, we do not express
lternal aecounting control of the City
~. Howevl~r, our study and evaluation
::ions that we believe result in more
it errors or irregularities in amounts
ition to the financial statements of the
md not b,~ detected within a timely
?sses an? set forth in the accompanying
t filed with the Department of Banking
)n 218.32, Florida Statutes (as amended)
30. 1983 is in agreement with the combined
J for the year ended September 30. 1983
?inion dated October 26. 1983, as dis-
nded solely for the use of the Honorable
counsel and the Department of Banking
used for any other purpose.
~~~
Cel~t[fied ~H
CITY OF OKEECHOBEE, FLORIDA
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COMMENTS ON ACCOUNTING PROCEDURES AND
INTERNAL ACCOUNTING CONTROLS
....
The matters in this memorandum have been discussed with administrative
personnel. We would be pleased to discuss our comments at your convenience if
further clarification is desired or if we may be of assistance in connection with
these matters. This memorandum is organized into the following sections:
Particulars
Page
Fixed Assets Accounting
Accounting Systems Development
Cash Disbursements
Payroll
Subsidiary Records
Investments
3
4
5
5
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6
Fixed Assets Accounting
The City has not maintained adequate detail records in support of the
recorded cost of the water and sewer plant in service or the amounts included
in the General Fixed Assets Group of Accounts and we were unable to obtain suf-
ficient supporting documentation to form an opinion with respect to (a) the
stated cost of property items acquired in years prior to October 1, 1981 or
(b) the accumulated depreciation applicable to the water and sewer utility plant
in service at September 30, 1983 or the provision for the year then ended.
Responsibility for maintaining details of property items should be
assumed by accounting personnel and implementation of property accounting pro-
cedures should begin with current year additions. To the extent historical
cost data is not available for certain old items, engineering data may be used
to establish replacement values or other appropriate bases for establishing
detail property records. While financial statement presentation of certain
capital assets (roads, streets, sidewalks, etc.) considered in the public domain
is optional, detailed property records for such items should still be maintained.
The current edition of the MFOA publication, Governmental Accounting, Auditing
and Financial Reporting (GAAFR) provides substantial information as to the con-
tent and maintenance of detailed property records.
Accumulated depreciation applicable to the recorded cost of the water
and sewer utility plant in service has been computed at a composite rate of
2-1/2%, or an average useful life of 40 years. The propriety of this rate
should be re-evaluated based on information developed by the detailed property
records discussed above.
-
4
City of Okeechobee. Florida
Comments on Accounting Procedures
and Internal Accounting Controls
Fixed Assets Accounting (Cant'd)
Amounts recorded in the General Fixed Assets Group of Accounts at
September 30. 1983 totaled $1.416.753 of which $884.654 was added subsequent to
October 1. 1979. Accordingly. details supporting a significant portion of the
aggregate property balance could be obtained by analyzing the expenditures for
capital outlays over a three-year period. Paid vendor invoices could be exam-
ined to obtain sufficient details to establish detailed property records for
each significant item over a reasonable minimum amount established by appro-
priate management personnel.
Consideration should also be given to a complete physical inventory
of those property items susceptible to observation and identification. The
listings prepared as a result of this work should be integrated with the
analyses of capital expenditures above.
Formal procedures for reporting property retirements should also be
adopted. Descriptions and other identifying data (such as tag numbers. loca-
tion. etc.) should be reported to accounting personnel on a timely basis in
order that appropriate entries to record the retirements can be made as applic-
able.
Accounting Systems Development
Our review of the City's data processing system disclosed the follow-
ing:
1. The City's utility and payroll software applications operate in-
dependently from the City's general ledger software application
necessitating manual accumulation of utility billings. adjust-
ments. collections and payroll information for posting the
general ledger accounts. The City should consider having the
necessary software modifications to fully integrate its utility
and payroll programs to its general ledger system.
2. It is our understanding that the City presently relies on its
hardware supplier. NCR. for equipment back-up in the event of
equipment failure. To assure equipment back-up in the event
an equipment failure occurs which threatens to seriously disrupt
computer operations. the City should consider entering into an
agreement with a user having a similar equipment configuration
for reciprocal equipment back-up.
3. Documentation of the City's utility program is incomplete at this
time. The City should request its software consultant to pro-
vide a complete operating manual which would include a narrative
description of the various components of the system as well as
a flow chart of the system.
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City of Okeechobee. Florida
Comments on Accounting Procedures
and Internal Accounting Controls
Accounting Systems D~velopment (Cont'd)
4. To prevent loss of data through equipment failure. the City should
consider instituting a program of routinely copying data and
storing the copy in a secure location. If such a program were
instituted on a weekly basis. reconstruction time of data files
caused by equipment failure would be limited to a maximum period
of 5 business days.
5. In discussions with Mr. Ron Barbour of NCR. it is our understanding
that two systems modifications are due to be released in Decem-
ber. 1983 which will improve data processing operations. They
are as follows:
A. The ability to operate in multi-periods. This feature will
enable the City to record financial transactions for
periods without having to close a prior month or fiscal
year.
B. A modification of the general ledger system to enable the
posting of adjustments to both balance sheet accounts
and revenue/expenditure accounts without having to gen-
erate complex entries.
Cash Disbursements
1. When using the encumbrance system to record purchase orders. addi-
tional care should be exercised in the recording of purchase
orders. Our work disclosed that purchase orders paid by manual
checks were not always removed from the encumbrance accounts.
2. To prevent the possibility of duplicate payment of invoices. all
items contained in paid bill files should be effectively can-
celled.
Payroll
Our tests of payroll procedures disclosed that employee files did not
always include the original or copy of payroll deduction authorizations.
Subsidiary Records
1. Procedures should be instituted to reconcile the utility monthly
status report totals with general ledger accounts receivable
totals.
2. The detail of utility customer deposits should be reconciled with
general ledger accounts on a monthly basis. It is our under-
standing that utility department personnel are in the process
of updating customer deposit records by matching receipts to the
deposit information contained within the utility program.
6
City of Okeechobee, Florida
Comments on Accounting Procedures
and Internal Accounting Controls
Cash Investments
~
The City has follo~ea. the practice of investing surplus cash in in-
terest bearing accounts to provide additional income for use in its operations.
In addition to investing surplus cash in interest accounts, the City should
consider having interest bearing checking accounts for all checking accounts
currently in use.
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