town of lantana, florida
TOWN OF LANTANA, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT SEPTEMBER 30, 2005
TOWN OF LANTANA, FLORIDA
TABLE OF CONTENTS
PAGE
INTRODUCTORY SECTION Letter of Transmittal List of Principal Officials Organizational Chart GFOA Certificate of Achievement for Excellence in Financial Reporting
i-vi vii viii ix
FINANCIAL SECTION Report of Independent Certified Public Accountants
1-2
Management’s Discussion and Analysis
3-11
BASIC FINANCIAL STATEMENTS: Government-Wide Financial Statements: Statement of Net Assets Statement of Activities Fund Financial Statements: Balance Sheet – Governmental Funds Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of the Governmental Funds to the Statement of Activities Statement of Net Assets – Proprietary Funds Statement of Revenues, Expenses, and Changes in Net Assets – Proprietary Funds Statement of Cash Flows - Proprietary Funds Statement of Fiduciary Net Assets Statement of Changes in Fiduciary Net Assets Notes to Basic Financial Statements REQUIRED SUPPLEMENTARY INFORMATION: Budgetary Comparison Schedule – General Fund Note to Budgetary Comparison Schedules Schedule of Employer Contributions – Police Relief and Pension Fund COMBINING NONMAJOR FUND STATEMENTS AND SCHEDULES: Combining Balance Sheet – Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Nonmajor Governmental Funds
12 13 14 15 16 17 18 19 20 21 22 23-46
47 48 49
50 51 52
TOWN OF LANTANA, FLORIDA
TABLE OF CONTENTS (Continued)
PAGE STATISTICAL SECTION Government-Wide Information: Table I – Government-Wide Expenses by Function Table II – Government-Wide Revenues Fund Information: Table III – General Governmental Expenditures by Function Table IV – General Governmental Revenues by Source Table V – Computation of Direct and Overlapping Bonded Debt - General Obligation Bonds Table VI – Property Tax Levies and Collections Table VII – Assessed and Estimated Actual Value of Taxable Property Table VIII – Ratio of Net Annual Debt Service Requirements for General Bonded Debt to Total General Governmental Expenditures Table IX – Property Tax Rates - Direct and Overlapping Governments Table X – Ratio of Net Debt to Assessed Value and Net Debt per Capita Table XI – Schedule of Water and Sewer Bond Coverage Table XII – Property Value, Construction, and Bank Deposits Table XIII – Principal Taxpayers Table XIV – Schedule of Insurance in Force Table XV – Miscellaneous Statistics
53 54
55 56 57 58 59 60 61 62 63 64 65 66 67-69
COMPLIANCE SECTION Report of Independent Certified Public Accountants on Compliance and on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
70-71
Management Letter in Accordance with the Rules of the Auditor General of the State of Florida
72-73
Report of Independent Certified Public Accountants on Compliance with Requirements Applicable to Each Major Federal Program and on Internal Control over Compliance in Accordance with OMB Circular A-133
74-75
Schedule of Expenditures of Federal Awards
76
Note to Schedule of Expenditures of Federal Awards
77
Summary Schedule of Prior Year Audit Findings
78
Schedule of Findings and Questioned Costs
79
INTRODUCTORY SECTION
TOWN OF LANTANA, FLORIDA LIST OF PRINCIPAL OFFICIALS SEPTEMBER 30, 2005
TITLE
NAME
Mayor
David J. Stewart
Vice Mayor
Ronald S. Edwards
Vice-Mayor Pro-Tem
Thomas Deringer
Council Member
Elizabeth Tennyson
Council Member
Dr. Lynn Moorhouse
Town Manager
Michael Bornstein
Town Attorney
Trela J. White
Town Engineers
Calvin, Giordano and Associates Mathew’s Consulting, Inc. WCG/Neal Shaffner, Inc.
Town Clerk
Darla Levy
Finance and Administrative Services Director
Barbara D. Hastings, C.P.A.
Town Auditors
Rachlin Cohen & Holtz LLP
vii
viii
ix
FINANCIAL SECTION
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
The Honorable Mayor, Members of the Town Council, and Town Manager Town of Lantana, Florida
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Lantana, Florida, (the Town) as of and for the year ended September 30, 2005, which collectively comprise the Town’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Town’s management. Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Lantana Police Relief and Pension Fund, which represents 90.3% and 41.7%, respectively, of the assets and revenues of the aggregate remaining fund information. Those financial statements were audited by other auditors whose reports thereon have been furnished to us, and in our opinion, insofar as it relates to the amounts included for the Lantana Police Relief and Pension Fund, is based on the reports of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Town’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit and the report of other auditors provides a reasonable basis for our opinions. In our opinion, based on our report and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town as of September 30, 2005, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States.
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The Honorable Mayor, Members of the Town Council, and Town Manager Town of Lantana, Florida Page Two
In accordance with Government Auditing Standards, we have also issued a report dated March 3, 2006, on our consideration of the Town’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing over internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. Management’s Discussion and Analysis and the Required Supplementary Information on pages 3 to 11 and 42 to 44 are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements taken as a whole. The introductory section, combining and individual fund financial statements and schedules, and the statistical tables are presented for purposes of additional analysis and are not a required part of the basic financial statements. Similarly, the accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments and Nonprofit Organizations; and is not a required part of the basic financial statements. The combining and individual fund financial statements and schedules and the schedule of expenditures of federal awards have been subjected to the auditing procedures applied by us and other auditors in the audit of the basic financial statements and, in our opinion, based on our audit and the report of other auditors are presented fairly, in all material respects, in relation to the basic financial statements taken as a whole. The information included in the introductory and statistical sections have not been subjected to auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion on them.
West Palm Beach, Florida March 3, 2006
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MANAGEMENT’S DISCUSSION AND ANALYSIS
The purpose of financial reporting, in general, is to provide the readers of the financial statements with information that will help them make decisions and draw conclusions about an entity. As management of the Town of Lantana (Town), Florida, we offer readers of the Town’s financial statements this narrative overview and analysis of the financial activities of the Town for the fiscal year ended September 30, 2005. We encourage readers to consider the information presented here in conjunction with information that we have furnished in our accompanying transmittal letter beginning on page i, and the accompanying basic financial statements.
FINANCIAL HIGHLIGHTS •
The Town’s net assets at September 30, 2005 were $13 million excluding the amount invested in capital assets. Of this amount, $11 million (unrestricted net assets) may be used to meet the Town’s ongoing obligations to citizens and creditors.
•
Governmental activities net assets were $25.6 million.
•
The total revenues from all sources were $17.6 million.
•
The total cost of all Town programs was $15.2 million.
•
During the year, the Town’s governmental activities revenues exceeded general expenses by $1.9 million.
•
Total revenues and other financing sources in the General Fund exceeded total expenditures and other financing uses by $2.2 million.
•
At the end of the current fiscal year, unreserved and undesignated fund balance for the General Fund was $6.5 million, or 68% of total general fund expenditures. Of this balance, $2.9 million was accumulated due to the sale of Town owned waterfront property. Council has recommended that this amount remain as unrestricted and is not to be used to finance the Town’s operations in future years.
•
The Town issued no new debt during the current fiscal year.
USING THIS ANNUAL REPORT This annual report consists of a series of financial statements. The three components of the financial statements are: (1) Government-wide financial statements, which include the Statement of Net Assets and the Statement of Activities. These statements provide information about the activities of the Town as a whole. (2) Fund financial statements illustrate how these services
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were financed in the short term, as well as what remains for future spending. Fund financial statements also report the Town’s operations in more detail than the government-wide statements by providing information about the Town’s most significant funds. (3) Notes to the financial statements. This is the Town’s third year of implementation of GASB Statement No. 34.
REPORTING THE TOWN AS A WHOLE Statement of Net Assets and the Statement of Activities (Government-wide) A frequently asked question regarding the Town’s financial health is whether the year’s activities contributed positively to the overall financial well-being. The Statement of Net Assets and the Statement of Activities report information about the Town as a whole and about its activities in a way that helps answer this question. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account, regardless of when cash is received or paid. These two statements report the Town’s net assets and changes therein. Net assets, the difference between assets and liabilities, are one way to measure the Town’s financial health, or financial position. Over time, increases or decreases in net assets are an indicator of whether the financial health is improving or deteriorating. The Statement of Net Assets and the Statement of Activities present information about the following: •
Governmental activities – All of the Town’s basic services are considered to be governmental activities, including general government, community development, public safety, public services, library, and recreation. Property taxes, sales taxes, utility taxes, and franchise fees finance most of these activities.
•
Proprietary activities/Business type activities – The Town charges a fee to customers to cover all or most of the cost of the services provided. REPORTING THE TOWN’S MOST SIGNIFICANT FUNDS
Fund Financial Statements The fund financial statements provide detailed information about the most significant funds – not the Town as a whole. Some funds are required to be established by State law. However, management establishes other funds, which aid in the management of money for particular purposes or meet legal responsibilities associated with the use of certain taxes, grants, and other monies. The Town’s three kinds of funds, governmental, proprietary, and fiduciary use different accounting approaches as explained below:
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•
Governmental funds – Most of the Town’s basic services are reported in governmental funds. Governmental funds focus on how resources flow in and out, with the balances remaining at year-end that are available for spending. These funds are reported using an accounting method called the modified accrual accounting method, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the Town’s general governmental operations and the basic services it provides. Governmental fund information shows whether there are more or less financial resources that can be spent in the near future to finance the Town’s programs. The basic governmental fund financial statements can be found on pages 14-17 of this report.
•
Proprietary funds – These fund financial statements consist of a Statement of Net Assets, Statement of Revenues, Expenses, and Changes in Fund Net Assets and Statement of Cash Flows. These statements are prepared on an accounting basis that is similar to the basis used to prepare the government-wide financial statements. The Town uses enterprise funds to account for business-type activities that charge fees to customers for the use of specific goods or services. These funds are used to report the same functions presented as business-type activities in government-wide financial statements. The basic proprietary fund financial statements can be found on pages 18-20 of this report.
•
Fiduciary funds – Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the Town’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on pages 21-22 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. In the case of the Town, assets exceeded liabilities by $33.7 million as compared to $31.3 million for the previous fiscal year. By far, the largest portion of the Town’s net assets (61%) reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment), less any related debt used to acquire those assets that is still outstanding. The Town uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Town’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities.
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Town of Lantana Net Assets (In Thousands) Governmental Activities 2005 2004
Business-type Activities 2005 2004
Total Activities 2005 2004
Assets: Current and other assets Capital assets Total assets
$ 8,624 22,336 $ 30,960
$ 6,704 23,341 $ 30,045
$ 6,422 13,243 $ 19,665
$ 6,303 14,028 $ 20,331
$ 15,046 35,579 $ 50,625
$ 13,007 37,369 $ 50,376
Liabilities: Long-term debt outstanding Other liabilities Total liabilities
$ 4,934 394 5,328
$ 5,405 931 6,336
$ 11,067 529 11,596
$ 11,703 1,043 12,746
$ 16,001 923 16,924
$ 17,108 1,974 19,082
Net assets: Invested in capital assets, net of debt Restricted Unrestricted Total net assets
18,161 221 7,250 $ 25,632
18,648 5,062 $ 23,710
2,560 1,757 3,752 $ 8,069
2,247 3,806 1,532 $ 7,585
20,721 1,978 11,002 $ 33,701
20,895 3,806 6,594 $ 31,295
A portion of the Town’s unrestricted net assets ($2.9 million) represents resources that are requested by Town Council to be set aside as this amount was acquired due to the sale of Town owned property. The balance of unrestricted net assets ($8.1 million) may be used to meet the government’s ongoing obligations to citizens and creditors. For both fiscal years presented, the Town was able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate governmental and business-type activities. There was an increase of $2.4 million in the government’s net assets for the fiscal year compared to $495,000 for the previous fiscal year. Business-type activities accounted for 21% of the total increase compared to 100% for the previous fiscal year. Governmental Activities The governmental activities increased the Town’s net assets by $1.9 million compared to a decrease of $62,000 in the prior year. Key elements of this increase are as follows:
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Town of Lantana Changes in Net Assets (In Thousands) Governmental Activities 2005 2004 Revenues: Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenues: Property taxes Utility taxes Franchise fees based on gross receipts Communications services tax and other taxes Intergovernmental - unrestricted Investment earnings - unrestricted Miscellaneous Total revenues
Business-type Activities 2005 2004
Total Activities 2005 2004
$ 3,274 54 1,424
$ 2,670 54 909
$ 4,722 -
$ 4,567 -
$ 7,996 54 1,424
$ 7,237 54 909
4,404 889 581 1,520 347 226 45 12,764
3,964 839 541 1,454 295 89 35 10,850
142 4,864
81 4,648
4,404 889 581 1,520 347 368 45 17,628
3,964 839 541 1,454 295 170 35 15,498
Expenses: Program expenses: General government Physical environment Public safety Transportation Culture and recreation Interest on long-term debt Utility - water & sewer Total expenses
839 2,428 5,809 908 693 164 10,841
687 1,776 5,746 1,439 1,068 196 10,912
4,381 4,381
4,091 4,091
839 2,428 5,809 908 693 164 4,381 15,222
687 1,776 5,746 1,439 1,068 196 4,091 15,003
Increase (decrease) in net assets Net assets - beginning
1,923 23,710
(62) 23,772
483 7,585
557 7,028
2,406 31,295
495 30,800
$ 8,068
$ 7,585
$ 33,701
$ 31,295
Net assets - ending
$ 25,633
$ 23,710
The Town’s programs include General Government, Public Safety, Physical Environment, Transportation, and Culture and Recreational Services. Each program’s net cost (total cost, less revenues generated by the activities) is presented below. The net cost demonstrates the extent to which the Town’s general taxes support each of the Town’s programs.
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Town of Lantana Governmental Activities (In Thousands) Net Cost of Services 2005 2004
Total Cost of Services 2005 2004 General government Physical environment Public safety Transportation Culture and recreation Interest on long-term debt Total
$
839 2,428 5,809 908 693 164 $ 10,841
$
693 1,775 5,750 1,439 1,140 251 $ 11,048
$
968 $ 492 (899) (931) (5,165) (5,105) (395) (941) (435) (858) (164) (251) $ (6,090) $ (7,594)
The cost of all governmental activities this year was $10.8 million. As shown on the Statement of Activities, those who directly benefited from the programs paid for $4.8 million of this cost, and $8 million was financed through general revenues. Business-type Activities Business-type activities increased the Town’s net assets by $483,000. Net assets of the proprietary fund at September 30, 2005, were $8.1 million. The cost of providing all proprietary (business-type) activities this year was $4.4 million compared to $4.1 million last year. As shown in the Statement of Activities, amounts paid by users of service were $4.7 million compared to $4.6 million last year. This increase in current year revenues is attributed to an increase in water and sewer fees paid by residents.
FINANCIAL ANALYSIS OF THE TOWN’S FUNDS As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds – The focus of the Town’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Town’s financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the Town’s governmental funds reported combined ending fund balances of $8.2 million, compared to $5.6 million last fiscal year. This represents an increase of almost $2.6 million in comparison with the prior year. This large increase is due
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to reimbursements from FEMA and the Town’s insurance carrier for damages sustained due to hurricanes Frances and Jeanne. A significant amount of repairs was not completed by the end of the fiscal year due to difficulties getting contractors. Approximately 80% or $6.6 million of the combined ending fund balances of $8.2 million constitutes unreserved fund balance, which is available for spending at the government’s discretion. The remainder of fund balance is reserved to indicate that it is not available for new spending because it has already been committed. The General Fund is the chief operating fund for the Town. At the end of the current fiscal year, unreserved and undesignated fund balance in the General Fund was $6.5 million, while total fund balance was $7.8 million. As a measure of the General Fund’s liquidity, it may be useful to compare both unreserved fund balance and total fund balance to the total fund expenditures. Unreserved fund balance represents 68% of total General Fund expenditures, while total fund balance represents 82% of that same amount. General Fund Budgetary Highlights Differences between the original budget and the final amended budget were ($1,475,685) and can be briefly summarized as follows: •
Increase due to damages related to hurricanes Frances and Jeanne.
•
Increase in various capital outlay expenditures.
CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets The capital assets of the Town are those assets that are used in the performance of Town functions. Capital assets include equipment, buildings, land, park facilities, etc. The Town has elected to retroactively apply the capitalization requirements of GASB Statement No. 34 to major general infrastructure assets. •
The Town’s investment in capital assets for its governmental and business-type activities as of September 30, 2005, amounts to $35.6 million (net of accumulated depreciation).
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Town of Lantana Capital Assets (In Thousands) Governmental Activities 2005 2004 Land Construction-in-progress Roads and streets Buildings and improvements Furniture, equipment and vehicles Intangible assets Total assets Less accumulated depreciation Total
Business-type Activities 2005 2004
Total Activities 2005 2004
$
110 $ 110 $ 4 $ 4 $ 114 $ 114 4,014 4,014 22,702 22,702 22,702 22,702 5,137 5,097 19,597 15,503 24,734 20,600 3,636 3,375 951 913 4,587 4,288 867 935 867 935 31,585 31,284 21,419 21,369 53,004 52,653 (9,249) (7,943) (8,176) (7,341) (17,425) (15,284) $ 22,336 $ 23,341 $ 13,243 $ 14,028 $ 35,579 $ 37,369
Additional information on the Town’s capital assets can be found in Note 5 of this report. Long-Term Debt Currently, the Town uses debt financing on an as-needed basis each year. At the end of the current fiscal year, the Town had total debt of $15.1 million. None of this amount comprises debt backed by the full faith and credit of the government. Gas tax and water and sewer revenues secure the remaining loans payable. The capital leases are secured by equipment. Town of Lantana Outstanding Debt (In Thousands) Governmental Activities 2005 2004 Bonds, notes and loans payable Obligations under utility agreement Capital leases Total
$ 4,038 136 $ 4,174
$ 4,567 126 $ 4,693
Business-type Activities 2005 2004 $ 10,742 183 $ 10,925
$ 7,278 317 25 $ 7,620
Total Activities 2005 2004 $ 14,780 183 136 $ 15,099
Additional information on the Town’s debt can be found in Note 7 of this report.
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$ 11,845 317 151 $ 12,313
NEXT YEAR’S BUDGET AND ECONOMIC FACTORS During the current fiscal year, unreserved fund balance in the General Fund increased to $7.8 million. The Town Council has recommended that $2.9 million of this amount remain in the General Fund and not be used to balance future year’s budgets. The remaining fund balance is intended to be used for the purchase of hurricane supplies and repairs and to avoid the need to raise taxes or charges during the 2006 fiscal year. In considering the Town’s budget for fiscal year 2005-2006, the Town’s Council and management were conservative as to the growth of revenues and expenditures.
CONTACTING THE TOWN’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the Town’s finances and to show the Town’s accountability for the money it receives and spends. If you have questions about this report or need additional financial information, contact the Town’s Finance Department, at the Town of Lantana, 500 Greynolds Circle, Lantana, Florida 33462.
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BASIC FINANCIAL STATEMENTS
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TOWN OF LANTANA, FLORIDA STATEMENT OF NET ASSETS SEPTEMBER 30, 2005
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Governmental Business-type Activities Activities
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ASSETS Cash and cash equivalents Investments
$ 7,006,]86 $ 2,925,174 $ 9,93],360 1,116,224 1,]16,224 416,091 370,688 786,779 12,205 12,205 58,025 58,025
Receivables (net) Inventories Deferred charges Restricted assets:
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Cash and cash equi valents Net pension asset Capital assets: Nondepreciable: Land
74,234
Depreciable: Roads and streets Buildings and improvements Furniture, equipment and vehicles Intangib]e assets Less accumulated depreciation and amortization Total assets
3,067,907 -
110,367
4,300
22,701,969
-
3,067,907 74,234
114,667
5,136,477 3,636,400
19,596,694 950,623
22,701,969 24,733,171 4,587,023
(9,249,563)
2,354,157 (9,662,880)
2,354,157 (18,912,443)
30,960,590
19,664,688
50,625,278
199,379
146,503 58,861 ]39,552 183,630
345,882 58,861 139,552 210,259 168,133
553,539 4,380,608
735,971 10,33],585
1,289,510 14,712,193
5,328,288
11,596,102
16,924,390
] 8,] 6] ,481 22] ,078 7,249,743
2,559,734 1,757,093 3,751,759
20,721,215 ],978,17] ]] ,001 ,502
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LIABILITIES AND NET ASSETS r I \
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Liabilities: Accounts payable and accrued liabilities Contracts and retainage payable Meter deposits payable Accrued interest payable Unearned revenue Noncurrent liabilities:
26,629 168,133
Due within one year Due in more than one year Total liabilities Net assets: Invested in capital assets, net of related debt Restricted for capital projects Unrestricted Total net assets
$ 25,632,302
See notesto basic financial statements.
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$ 8,068,586
$ 33,700,888
TOWN OF LANTANA, FLORIDA STATEMENT OF ACTIVITIES YEAR ENDED SEPTEMBER 30, 2005
Function/Program
Activities
Program Revenues Operating Capital Grants and Grants and Contributions Contributions
Charges for Services
Expenses
Governmental
Business-type
Activities
Activities
Total
Governmental activities: General government Physical environment Public safety Transportation Culture and recreation Interest on long term debt Total governmental activities Business-type activities: Utility - water and sewer Total business-type activities Total government
$
838,825 2,428,172 5,809,286 908,079 693,299 164,251
$
$1,751,449 772,121 501,851 248,170
-
10,841,912
3,273,591
4,381,072
4,722,012
4,381,072 $ 15,222,984
54,000
4,722,012 $ 7,995,603 $
$
1,305 756,869 142,801 513,264 9,838
$,
967,929
$
- $
(899,182) (5,164,634) (394,815) (435,291)
(164,251) 54,000
1,424,077
54,000 $ 1,424,077
(6,090,244)
(6,090,244)
967,929 (899,182) (5,164,634) (394,815) (435,291) (164,251) (6,090,244)
340,940
340,940
340,940
340,940
340,940
(5,749,304)
General revenues: Property taxes Utility taxes Franchise fees based on gross receipts Communications services tax Other taxes
Intergovernmental - unrestricted Interest on investments - unrestricted Miscellaneous Total general revenues Change in net assets
888,606 580,710 482,655 1,037,701 347,761 . 226,476 44,522
142,630
4,404,452 888,606 580,710 482,655 1,037,701 347,761 369,106 44,522
8,012,883
142,630
8,155,513
1,922,639
483,570
2,406,209
23,709,663 7,585,016 31,294,679 $ 25,632,302 $ 8,068,586 $ 33,700,888
Net assets, beginning of year Net assets, end of year
See notes to basic financial statements. -13-
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4,404,452
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TOWN OF LANTANA, FLORIDA
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BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2005 j1 1 I ,
General
Nonmajor Governmental Funds
,Total Governmental Funds
ASSETS
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$6,638,625 $ 1,116,224
367,561
73,212 314,151 20,739 12,205
2,115 26,613
7,006,186 1,116,224 75,327 340,764 20,739 12,205
$
396,289
$
8,571,445
$ 177,543 $
21,836 20,739
$
199,379 20,739 168,133
$8,175,156
Total assets
$
LIABILITIES AND FUND BALANCES Liabilities:
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Accounts payable and accrued liabilities Due to other funds Unearned revenue
168,133 42,575
345,676
Total liabilities
388,251
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TOWN OF LANTANA, FLORIDA
TABLE OF CONTENTS
PAGE
INTRODUCTORY SECTION Letter of Transmittal List of Principal Officials Organizational Chart GFOA Certificate of Achievement for Excellence in Financial Reporting
i-vi vii viii ix
FINANCIAL SECTION Report of Independent Certified Public Accountants
1-2
Management’s Discussion and Analysis
3-11
BASIC FINANCIAL STATEMENTS: Government-Wide Financial Statements: Statement of Net Assets Statement of Activities Fund Financial Statements: Balance Sheet – Governmental Funds Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of the Governmental Funds to the Statement of Activities Statement of Net Assets – Proprietary Funds Statement of Revenues, Expenses, and Changes in Net Assets – Proprietary Funds Statement of Cash Flows - Proprietary Funds Statement of Fiduciary Net Assets Statement of Changes in Fiduciary Net Assets Notes to Basic Financial Statements REQUIRED SUPPLEMENTARY INFORMATION: Budgetary Comparison Schedule – General Fund Note to Budgetary Comparison Schedules Schedule of Employer Contributions – Police Relief and Pension Fund COMBINING NONMAJOR FUND STATEMENTS AND SCHEDULES: Combining Balance Sheet – Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Nonmajor Governmental Funds
12 13 14 15 16 17 18 19 20 21 22 23-46
47 48 49
50 51 52
TOWN OF LANTANA, FLORIDA
TABLE OF CONTENTS (Continued)
PAGE STATISTICAL SECTION Government-Wide Information: Table I – Government-Wide Expenses by Function Table II – Government-Wide Revenues Fund Information: Table III – General Governmental Expenditures by Function Table IV – General Governmental Revenues by Source Table V – Computation of Direct and Overlapping Bonded Debt - General Obligation Bonds Table VI – Property Tax Levies and Collections Table VII – Assessed and Estimated Actual Value of Taxable Property Table VIII – Ratio of Net Annual Debt Service Requirements for General Bonded Debt to Total General Governmental Expenditures Table IX – Property Tax Rates - Direct and Overlapping Governments Table X – Ratio of Net Debt to Assessed Value and Net Debt per Capita Table XI – Schedule of Water and Sewer Bond Coverage Table XII – Property Value, Construction, and Bank Deposits Table XIII – Principal Taxpayers Table XIV – Schedule of Insurance in Force Table XV – Miscellaneous Statistics
53 54
55 56 57 58 59 60 61 62 63 64 65 66 67-69
COMPLIANCE SECTION Report of Independent Certified Public Accountants on Compliance and on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
70-71
Management Letter in Accordance with the Rules of the Auditor General of the State of Florida
72-73
Report of Independent Certified Public Accountants on Compliance with Requirements Applicable to Each Major Federal Program and on Internal Control over Compliance in Accordance with OMB Circular A-133
74-75
Schedule of Expenditures of Federal Awards
76
Note to Schedule of Expenditures of Federal Awards
77
Summary Schedule of Prior Year Audit Findings
78
Schedule of Findings and Questioned Costs
79
INTRODUCTORY SECTION
TOWN OF LANTANA, FLORIDA LIST OF PRINCIPAL OFFICIALS SEPTEMBER 30, 2005
TITLE
NAME
Mayor
David J. Stewart
Vice Mayor
Ronald S. Edwards
Vice-Mayor Pro-Tem
Thomas Deringer
Council Member
Elizabeth Tennyson
Council Member
Dr. Lynn Moorhouse
Town Manager
Michael Bornstein
Town Attorney
Trela J. White
Town Engineers
Calvin, Giordano and Associates Mathew’s Consulting, Inc. WCG/Neal Shaffner, Inc.
Town Clerk
Darla Levy
Finance and Administrative Services Director
Barbara D. Hastings, C.P.A.
Town Auditors
Rachlin Cohen & Holtz LLP
vii
viii
ix
FINANCIAL SECTION
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
The Honorable Mayor, Members of the Town Council, and Town Manager Town of Lantana, Florida
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Lantana, Florida, (the Town) as of and for the year ended September 30, 2005, which collectively comprise the Town’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Town’s management. Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Lantana Police Relief and Pension Fund, which represents 90.3% and 41.7%, respectively, of the assets and revenues of the aggregate remaining fund information. Those financial statements were audited by other auditors whose reports thereon have been furnished to us, and in our opinion, insofar as it relates to the amounts included for the Lantana Police Relief and Pension Fund, is based on the reports of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Town’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit and the report of other auditors provides a reasonable basis for our opinions. In our opinion, based on our report and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town as of September 30, 2005, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States.
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The Honorable Mayor, Members of the Town Council, and Town Manager Town of Lantana, Florida Page Two
In accordance with Government Auditing Standards, we have also issued a report dated March 3, 2006, on our consideration of the Town’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing over internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. Management’s Discussion and Analysis and the Required Supplementary Information on pages 3 to 11 and 42 to 44 are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements taken as a whole. The introductory section, combining and individual fund financial statements and schedules, and the statistical tables are presented for purposes of additional analysis and are not a required part of the basic financial statements. Similarly, the accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments and Nonprofit Organizations; and is not a required part of the basic financial statements. The combining and individual fund financial statements and schedules and the schedule of expenditures of federal awards have been subjected to the auditing procedures applied by us and other auditors in the audit of the basic financial statements and, in our opinion, based on our audit and the report of other auditors are presented fairly, in all material respects, in relation to the basic financial statements taken as a whole. The information included in the introductory and statistical sections have not been subjected to auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion on them.
West Palm Beach, Florida March 3, 2006
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MANAGEMENT’S DISCUSSION AND ANALYSIS
The purpose of financial reporting, in general, is to provide the readers of the financial statements with information that will help them make decisions and draw conclusions about an entity. As management of the Town of Lantana (Town), Florida, we offer readers of the Town’s financial statements this narrative overview and analysis of the financial activities of the Town for the fiscal year ended September 30, 2005. We encourage readers to consider the information presented here in conjunction with information that we have furnished in our accompanying transmittal letter beginning on page i, and the accompanying basic financial statements.
FINANCIAL HIGHLIGHTS •
The Town’s net assets at September 30, 2005 were $13 million excluding the amount invested in capital assets. Of this amount, $11 million (unrestricted net assets) may be used to meet the Town’s ongoing obligations to citizens and creditors.
•
Governmental activities net assets were $25.6 million.
•
The total revenues from all sources were $17.6 million.
•
The total cost of all Town programs was $15.2 million.
•
During the year, the Town’s governmental activities revenues exceeded general expenses by $1.9 million.
•
Total revenues and other financing sources in the General Fund exceeded total expenditures and other financing uses by $2.2 million.
•
At the end of the current fiscal year, unreserved and undesignated fund balance for the General Fund was $6.5 million, or 68% of total general fund expenditures. Of this balance, $2.9 million was accumulated due to the sale of Town owned waterfront property. Council has recommended that this amount remain as unrestricted and is not to be used to finance the Town’s operations in future years.
•
The Town issued no new debt during the current fiscal year.
USING THIS ANNUAL REPORT This annual report consists of a series of financial statements. The three components of the financial statements are: (1) Government-wide financial statements, which include the Statement of Net Assets and the Statement of Activities. These statements provide information about the activities of the Town as a whole. (2) Fund financial statements illustrate how these services
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were financed in the short term, as well as what remains for future spending. Fund financial statements also report the Town’s operations in more detail than the government-wide statements by providing information about the Town’s most significant funds. (3) Notes to the financial statements. This is the Town’s third year of implementation of GASB Statement No. 34.
REPORTING THE TOWN AS A WHOLE Statement of Net Assets and the Statement of Activities (Government-wide) A frequently asked question regarding the Town’s financial health is whether the year’s activities contributed positively to the overall financial well-being. The Statement of Net Assets and the Statement of Activities report information about the Town as a whole and about its activities in a way that helps answer this question. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account, regardless of when cash is received or paid. These two statements report the Town’s net assets and changes therein. Net assets, the difference between assets and liabilities, are one way to measure the Town’s financial health, or financial position. Over time, increases or decreases in net assets are an indicator of whether the financial health is improving or deteriorating. The Statement of Net Assets and the Statement of Activities present information about the following: •
Governmental activities – All of the Town’s basic services are considered to be governmental activities, including general government, community development, public safety, public services, library, and recreation. Property taxes, sales taxes, utility taxes, and franchise fees finance most of these activities.
•
Proprietary activities/Business type activities – The Town charges a fee to customers to cover all or most of the cost of the services provided. REPORTING THE TOWN’S MOST SIGNIFICANT FUNDS
Fund Financial Statements The fund financial statements provide detailed information about the most significant funds – not the Town as a whole. Some funds are required to be established by State law. However, management establishes other funds, which aid in the management of money for particular purposes or meet legal responsibilities associated with the use of certain taxes, grants, and other monies. The Town’s three kinds of funds, governmental, proprietary, and fiduciary use different accounting approaches as explained below:
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•
Governmental funds – Most of the Town’s basic services are reported in governmental funds. Governmental funds focus on how resources flow in and out, with the balances remaining at year-end that are available for spending. These funds are reported using an accounting method called the modified accrual accounting method, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the Town’s general governmental operations and the basic services it provides. Governmental fund information shows whether there are more or less financial resources that can be spent in the near future to finance the Town’s programs. The basic governmental fund financial statements can be found on pages 14-17 of this report.
•
Proprietary funds – These fund financial statements consist of a Statement of Net Assets, Statement of Revenues, Expenses, and Changes in Fund Net Assets and Statement of Cash Flows. These statements are prepared on an accounting basis that is similar to the basis used to prepare the government-wide financial statements. The Town uses enterprise funds to account for business-type activities that charge fees to customers for the use of specific goods or services. These funds are used to report the same functions presented as business-type activities in government-wide financial statements. The basic proprietary fund financial statements can be found on pages 18-20 of this report.
•
Fiduciary funds – Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the Town’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on pages 21-22 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. In the case of the Town, assets exceeded liabilities by $33.7 million as compared to $31.3 million for the previous fiscal year. By far, the largest portion of the Town’s net assets (61%) reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment), less any related debt used to acquire those assets that is still outstanding. The Town uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Town’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities.
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Town of Lantana Net Assets (In Thousands) Governmental Activities 2005 2004
Business-type Activities 2005 2004
Total Activities 2005 2004
Assets: Current and other assets Capital assets Total assets
$ 8,624 22,336 $ 30,960
$ 6,704 23,341 $ 30,045
$ 6,422 13,243 $ 19,665
$ 6,303 14,028 $ 20,331
$ 15,046 35,579 $ 50,625
$ 13,007 37,369 $ 50,376
Liabilities: Long-term debt outstanding Other liabilities Total liabilities
$ 4,934 394 5,328
$ 5,405 931 6,336
$ 11,067 529 11,596
$ 11,703 1,043 12,746
$ 16,001 923 16,924
$ 17,108 1,974 19,082
Net assets: Invested in capital assets, net of debt Restricted Unrestricted Total net assets
18,161 221 7,250 $ 25,632
18,648 5,062 $ 23,710
2,560 1,757 3,752 $ 8,069
2,247 3,806 1,532 $ 7,585
20,721 1,978 11,002 $ 33,701
20,895 3,806 6,594 $ 31,295
A portion of the Town’s unrestricted net assets ($2.9 million) represents resources that are requested by Town Council to be set aside as this amount was acquired due to the sale of Town owned property. The balance of unrestricted net assets ($8.1 million) may be used to meet the government’s ongoing obligations to citizens and creditors. For both fiscal years presented, the Town was able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate governmental and business-type activities. There was an increase of $2.4 million in the government’s net assets for the fiscal year compared to $495,000 for the previous fiscal year. Business-type activities accounted for 21% of the total increase compared to 100% for the previous fiscal year. Governmental Activities The governmental activities increased the Town’s net assets by $1.9 million compared to a decrease of $62,000 in the prior year. Key elements of this increase are as follows:
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Town of Lantana Changes in Net Assets (In Thousands) Governmental Activities 2005 2004 Revenues: Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenues: Property taxes Utility taxes Franchise fees based on gross receipts Communications services tax and other taxes Intergovernmental - unrestricted Investment earnings - unrestricted Miscellaneous Total revenues
Business-type Activities 2005 2004
Total Activities 2005 2004
$ 3,274 54 1,424
$ 2,670 54 909
$ 4,722 -
$ 4,567 -
$ 7,996 54 1,424
$ 7,237 54 909
4,404 889 581 1,520 347 226 45 12,764
3,964 839 541 1,454 295 89 35 10,850
142 4,864
81 4,648
4,404 889 581 1,520 347 368 45 17,628
3,964 839 541 1,454 295 170 35 15,498
Expenses: Program expenses: General government Physical environment Public safety Transportation Culture and recreation Interest on long-term debt Utility - water & sewer Total expenses
839 2,428 5,809 908 693 164 10,841
687 1,776 5,746 1,439 1,068 196 10,912
4,381 4,381
4,091 4,091
839 2,428 5,809 908 693 164 4,381 15,222
687 1,776 5,746 1,439 1,068 196 4,091 15,003
Increase (decrease) in net assets Net assets - beginning
1,923 23,710
(62) 23,772
483 7,585
557 7,028
2,406 31,295
495 30,800
$ 8,068
$ 7,585
$ 33,701
$ 31,295
Net assets - ending
$ 25,633
$ 23,710
The Town’s programs include General Government, Public Safety, Physical Environment, Transportation, and Culture and Recreational Services. Each program’s net cost (total cost, less revenues generated by the activities) is presented below. The net cost demonstrates the extent to which the Town’s general taxes support each of the Town’s programs.
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Town of Lantana Governmental Activities (In Thousands) Net Cost of Services 2005 2004
Total Cost of Services 2005 2004 General government Physical environment Public safety Transportation Culture and recreation Interest on long-term debt Total
$
839 2,428 5,809 908 693 164 $ 10,841
$
693 1,775 5,750 1,439 1,140 251 $ 11,048
$
968 $ 492 (899) (931) (5,165) (5,105) (395) (941) (435) (858) (164) (251) $ (6,090) $ (7,594)
The cost of all governmental activities this year was $10.8 million. As shown on the Statement of Activities, those who directly benefited from the programs paid for $4.8 million of this cost, and $8 million was financed through general revenues. Business-type Activities Business-type activities increased the Town’s net assets by $483,000. Net assets of the proprietary fund at September 30, 2005, were $8.1 million. The cost of providing all proprietary (business-type) activities this year was $4.4 million compared to $4.1 million last year. As shown in the Statement of Activities, amounts paid by users of service were $4.7 million compared to $4.6 million last year. This increase in current year revenues is attributed to an increase in water and sewer fees paid by residents.
FINANCIAL ANALYSIS OF THE TOWN’S FUNDS As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds – The focus of the Town’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Town’s financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the Town’s governmental funds reported combined ending fund balances of $8.2 million, compared to $5.6 million last fiscal year. This represents an increase of almost $2.6 million in comparison with the prior year. This large increase is due
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to reimbursements from FEMA and the Town’s insurance carrier for damages sustained due to hurricanes Frances and Jeanne. A significant amount of repairs was not completed by the end of the fiscal year due to difficulties getting contractors. Approximately 80% or $6.6 million of the combined ending fund balances of $8.2 million constitutes unreserved fund balance, which is available for spending at the government’s discretion. The remainder of fund balance is reserved to indicate that it is not available for new spending because it has already been committed. The General Fund is the chief operating fund for the Town. At the end of the current fiscal year, unreserved and undesignated fund balance in the General Fund was $6.5 million, while total fund balance was $7.8 million. As a measure of the General Fund’s liquidity, it may be useful to compare both unreserved fund balance and total fund balance to the total fund expenditures. Unreserved fund balance represents 68% of total General Fund expenditures, while total fund balance represents 82% of that same amount. General Fund Budgetary Highlights Differences between the original budget and the final amended budget were ($1,475,685) and can be briefly summarized as follows: •
Increase due to damages related to hurricanes Frances and Jeanne.
•
Increase in various capital outlay expenditures.
CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets The capital assets of the Town are those assets that are used in the performance of Town functions. Capital assets include equipment, buildings, land, park facilities, etc. The Town has elected to retroactively apply the capitalization requirements of GASB Statement No. 34 to major general infrastructure assets. •
The Town’s investment in capital assets for its governmental and business-type activities as of September 30, 2005, amounts to $35.6 million (net of accumulated depreciation).
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Town of Lantana Capital Assets (In Thousands) Governmental Activities 2005 2004 Land Construction-in-progress Roads and streets Buildings and improvements Furniture, equipment and vehicles Intangible assets Total assets Less accumulated depreciation Total
Business-type Activities 2005 2004
Total Activities 2005 2004
$
110 $ 110 $ 4 $ 4 $ 114 $ 114 4,014 4,014 22,702 22,702 22,702 22,702 5,137 5,097 19,597 15,503 24,734 20,600 3,636 3,375 951 913 4,587 4,288 867 935 867 935 31,585 31,284 21,419 21,369 53,004 52,653 (9,249) (7,943) (8,176) (7,341) (17,425) (15,284) $ 22,336 $ 23,341 $ 13,243 $ 14,028 $ 35,579 $ 37,369
Additional information on the Town’s capital assets can be found in Note 5 of this report. Long-Term Debt Currently, the Town uses debt financing on an as-needed basis each year. At the end of the current fiscal year, the Town had total debt of $15.1 million. None of this amount comprises debt backed by the full faith and credit of the government. Gas tax and water and sewer revenues secure the remaining loans payable. The capital leases are secured by equipment. Town of Lantana Outstanding Debt (In Thousands) Governmental Activities 2005 2004 Bonds, notes and loans payable Obligations under utility agreement Capital leases Total
$ 4,038 136 $ 4,174
$ 4,567 126 $ 4,693
Business-type Activities 2005 2004 $ 10,742 183 $ 10,925
$ 7,278 317 25 $ 7,620
Total Activities 2005 2004 $ 14,780 183 136 $ 15,099
Additional information on the Town’s debt can be found in Note 7 of this report.
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$ 11,845 317 151 $ 12,313
NEXT YEAR’S BUDGET AND ECONOMIC FACTORS During the current fiscal year, unreserved fund balance in the General Fund increased to $7.8 million. The Town Council has recommended that $2.9 million of this amount remain in the General Fund and not be used to balance future year’s budgets. The remaining fund balance is intended to be used for the purchase of hurricane supplies and repairs and to avoid the need to raise taxes or charges during the 2006 fiscal year. In considering the Town’s budget for fiscal year 2005-2006, the Town’s Council and management were conservative as to the growth of revenues and expenditures.
CONTACTING THE TOWN’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the Town’s finances and to show the Town’s accountability for the money it receives and spends. If you have questions about this report or need additional financial information, contact the Town’s Finance Department, at the Town of Lantana, 500 Greynolds Circle, Lantana, Florida 33462.
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BASIC FINANCIAL STATEMENTS
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TOWN OF LANTANA, FLORIDA STATEMENT OF NET ASSETS SEPTEMBER 30, 2005
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Governmental Business-type Activities Activities
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ASSETS Cash and cash equivalents Investments
$ 7,006,]86 $ 2,925,174 $ 9,93],360 1,116,224 1,]16,224 416,091 370,688 786,779 12,205 12,205 58,025 58,025
Receivables (net) Inventories Deferred charges Restricted assets:
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Cash and cash equi valents Net pension asset Capital assets: Nondepreciable: Land
74,234
Depreciable: Roads and streets Buildings and improvements Furniture, equipment and vehicles Intangib]e assets Less accumulated depreciation and amortization Total assets
3,067,907 -
110,367
4,300
22,701,969
-
3,067,907 74,234
114,667
5,136,477 3,636,400
19,596,694 950,623
22,701,969 24,733,171 4,587,023
(9,249,563)
2,354,157 (9,662,880)
2,354,157 (18,912,443)
30,960,590
19,664,688
50,625,278
199,379
146,503 58,861 ]39,552 183,630
345,882 58,861 139,552 210,259 168,133
553,539 4,380,608
735,971 10,33],585
1,289,510 14,712,193
5,328,288
11,596,102
16,924,390
] 8,] 6] ,481 22] ,078 7,249,743
2,559,734 1,757,093 3,751,759
20,721,215 ],978,17] ]] ,001 ,502
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LIABILITIES AND NET ASSETS r I \
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Liabilities: Accounts payable and accrued liabilities Contracts and retainage payable Meter deposits payable Accrued interest payable Unearned revenue Noncurrent liabilities:
26,629 168,133
Due within one year Due in more than one year Total liabilities Net assets: Invested in capital assets, net of related debt Restricted for capital projects Unrestricted Total net assets
$ 25,632,302
See notesto basic financial statements.
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$ 8,068,586
$ 33,700,888
TOWN OF LANTANA, FLORIDA STATEMENT OF ACTIVITIES YEAR ENDED SEPTEMBER 30, 2005
Function/Program
Activities
Program Revenues Operating Capital Grants and Grants and Contributions Contributions
Charges for Services
Expenses
Governmental
Business-type
Activities
Activities
Total
Governmental activities: General government Physical environment Public safety Transportation Culture and recreation Interest on long term debt Total governmental activities Business-type activities: Utility - water and sewer Total business-type activities Total government
$
838,825 2,428,172 5,809,286 908,079 693,299 164,251
$
$1,751,449 772,121 501,851 248,170
-
10,841,912
3,273,591
4,381,072
4,722,012
4,381,072 $ 15,222,984
54,000
4,722,012 $ 7,995,603 $
$
1,305 756,869 142,801 513,264 9,838
$,
967,929
$
- $
(899,182) (5,164,634) (394,815) (435,291)
(164,251) 54,000
1,424,077
54,000 $ 1,424,077
(6,090,244)
(6,090,244)
967,929 (899,182) (5,164,634) (394,815) (435,291) (164,251) (6,090,244)
340,940
340,940
340,940
340,940
340,940
(5,749,304)
General revenues: Property taxes Utility taxes Franchise fees based on gross receipts Communications services tax Other taxes
Intergovernmental - unrestricted Interest on investments - unrestricted Miscellaneous Total general revenues Change in net assets
888,606 580,710 482,655 1,037,701 347,761 . 226,476 44,522
142,630
4,404,452 888,606 580,710 482,655 1,037,701 347,761 369,106 44,522
8,012,883
142,630
8,155,513
1,922,639
483,570
2,406,209
23,709,663 7,585,016 31,294,679 $ 25,632,302 $ 8,068,586 $ 33,700,888
Net assets, beginning of year Net assets, end of year
See notes to basic financial statements. -13-
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4,404,452
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TOWN OF LANTANA, FLORIDA
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BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2005 j1 1 I ,
General
Nonmajor Governmental Funds
,Total Governmental Funds
ASSETS
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$6,638,625 $ 1,116,224
367,561
73,212 314,151 20,739 12,205
2,115 26,613
7,006,186 1,116,224 75,327 340,764 20,739 12,205
$
396,289
$
8,571,445
$ 177,543 $
21,836 20,739
$
199,379 20,739 168,133
$8,175,156
Total assets
$
LIABILITIES AND FUND BALANCES Liabilities:
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Accounts payable and accrued liabilities Due to other funds Unearned revenue
168,133 42,575
345,676
Total liabilities
388,251
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