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Fiscal Year 1983 & 1984 MONROE COUNTY, FLORIDA CARD cOUkn ROAD AND BRIDGE TOLL FACILITY FINANCIAL. STATEMENTS SEPT MBE 30, 1984 AND 1983, KEW & ROSASCO CERTIFIED PUBLIC ACCOUNTANV��—. CONTENTS 2_qe Independent Auditors' Opinion I Financial Statements: Balance Sheets 2 Statements of Revenues, Expenses and Fund Equity 3 Statements of Changes in Financial Position 4 Notes to Financial Statements 5-6 Supplemental Schedule - Computations of Toll Requirements 7 Bond Compliance Letter 8 KE OSASCO Certified Public Accountants 1438 KENNEDY D . #12 LUANI PLAZA * P. O. BOX 309 KEY WEST, FL 33041-0309 ORVIS M. KEMP, C.P.A. (305) 294-2581 MEMBER OF AMERICAN INSTITUTE WM. O. KEMP, C.P.A. AND FLORIDA INSTITUTE OF PETER L. ROSASCO, Jr., C.P.A. CERTIFIED PUBLIC ACCOUNTANTS MARVA E. GREEN, C.P.A. DEREK PARKER, C.P.A. Honorable Members of the Board of County Commissioners Monroe County, Florida: We have examined the Balance Sheets of Monroe County Card Sound Road and Bridge Toll Facility as of September 30, 1984 and 1983, and the related Statements of Revenues, Expenses, and Fund Equity, and Changes in Financial Position for the years then ended® 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 con- sidered necessary in the circumstances® In our opinion, the financial statements referred to above, present fairly the financial position of Monroe County Card Sound Road and Bridge Toll Facility as of September 30, 1984 and 1983, and the results of its operations and changes in its financial position for the years then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Our examination was made for the purpose of forming an opinion on the finan- cial statements taken as a whole® The supplemental schedule of Computations of Toll Requirements is presented for additional analysis and is not a required part of the financial statements® Such information has been sub- jected to the auditing procedures applied in the examination of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole® I/ Kemp & Rosasco Certified Public Accountants February 14, 1985 10 10 N O N V N 01 N V 00 (D Itl 10 to O M C\ O) ONNC N O c0 I 1 oO I tb c0 O M N O M M 0 M N t0 O N IP r m a, M h r M M M 10 r m D\ N N s9 b9 i O r d (0 ib 10 O r O` r O O� M 10 10 r c- r 1(\ N O r of co d° M~ M N M V N ol r O t h r N O ICE M O. 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L 0 U 0 m m m a L m C U O m m L LU U p N U—¢p OOc V) fl U L � MONROE COUNTY., FLORIDA CARD SOUND ROAD AND BRIDGE TOLL FACILITY STATEMENTS OF REVENUES L_EXPENSES AND_FUND_EQUITY FOR-'THE YEARS ENDED SEPTEMBER 30,_ 1984 AND 1983 1984 1983 Operating Revenues - Tolls $ _606�436 $ 396,223 Operating Expenses: Personal services 1293,962 1223,806 Depreciation 45,986 66, 145 Repairs and maintenance 38,799 3,519 Operations 21 ,630 - Professional services 15,855 34 078 Total Operating Expenses 252,232 226,58 Operating Income 354 204 169 675 Nonoperating Revenue (Expense) : Interest income 29,565 20,734 Interest expense and paying agent fees (78,355) (83,032) Other 4,232 5,669 Total Nonoperating Revenue (Expense) (44,558) (56 629) Net Income 309,646 113,046 Fund Equity, October 1 689,292 576,246 Fund Equity, September 30 $ 9983,938 689.9292 The accompanying notes are an integral part of these financial statements® -3- MONROE COUNTY FLORIDA CARO SOUND ROAD AND TOLL, BRIDGE FACILITY STATEMENTS OF CHANGES IN FINANCIAL POSITION FOR THE YEARS._ENDED..SE,P,TSEMBE-R 30 1984 AND 1983 1984 1983 Sources of Working Capital ® Operations: Net Income 309,646 $ 113,046 Items not requiring current outlay of working capital : Depreciation 45,986 66,15 Amortization of discounts on bonds I_L838 1j908 Working Capital Provided By Operations 357,470 181,099 Decrease in working capital 1_1745 - Total Sources of Working Capital $ 359,215 $ 181 ,099 Uses of Working Capital : ( Increase) Decrease in liabilities payable from restricted assets: Interest $ 551 239 Revenue bonds 115,000 55,000 Contracts payable (6.761 ) - Total Decrease in Liabilities Payable from Restricted Assets 108,790 55,239 Increase in restricted assets 250,237 125,860 Property additions M - Total Uses of Working Capital $ 359,215 $ 181 ,099 Increase (Decrease) in Components of Working Capital : Cash $ 14, 117 $ 2,525 Due from other funds 36 - Accounts payable ( 15,898) (2,525) Accrued annual leave Net Decrease in Working Capital $ ( IJ,745) $ The accompanying notes are an integral part of these financial statements® -4- MONROE COIIE FLnRInA CARD SOUND ROAD AND TOLL BRIDGE FACILITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1984 AND 1983 NOTE I ® SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES General ® The Monroe County Card Sound Road and Bridge Toll Facility (the "Bridge") is an instrumentality of Monroe County (the "County") authorized to own and operate the Monroe County Card Sound Bridge. Basis of Accountin The Bridge follows the accrual basis of accounting. Restricted Assets ® Assets that are designated for specified purposes under revenue bond provisions (Note 2) are included in the accompanying balance sheets as restricted assets. Depreciation ® Depreciation is provided using the straight-line method and the following estimated useful lives: DesSLjkjj2L Years Roads and bridges 50 Equipment 5-10 Discount on Bonds Payable - Discounts on revenue bonds payable are amor- tized using the straight-line method over the maturities of the related bonds. NOTE 2 ® LONG-TERM DEBT The Bridge is authorized to issue revenue bonds for the purpose of constructing and improving Card Sound Road and Bridge. Such revenue bonds are payable solely from the revenue generated by the Bridge and do not constitute a general obligation of the County. An interest rate of 5.75% per annum is payable semi-annually on the entire term bond issue, which matures September 1, 1997. Under the terms of the trust agreement relating to the revenue bonds, the Bridge is required to establish and collect tolls which will be suf- ficient at all times to pay 125% of the interest becoming due on such bonds in such year, pay the annual installment of principal required to amortize the principal of such bonds according to a standard table of bond amortization, create and maintain reserves for such purposes, and pay the costs of maintaining and operating Card Sound Road and Bridge. Any excess revenues must be set aside to repurchase bonds prior to maturity. -5- KA A 1-MR-E COUNTY FLORIDA CARD SOUND ROAD AND BRIDGE TOLL FACILITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,_ 19B4 AND 19B3 NOTE 3 ® PENSION PLAN The County participates in the Florida Retirement System (the "System") which covers substantially all of the County's full-time employees. Presently, the System does not require contributions from covered employees. Pension costs for Bridge employees for the years ended September 30, 19B4 and 19B3, as required and defined by the System, approximated $ 10,B78 and $ 10,662 respectively. Contributions of all participating agencies throughout the State of Florida are pooled to fund accrued benefits under the System. System officials have reported that the System has an actuarially computed unfunded past service liability of approximately $6.5 billion as of July 1 , 1983, the latest valuation date of the plan. This amount represents an obligation of the System and not of the participating agencies. The most recent actuarial study indicates that, if certain assumptions are realized and certain increases to the contribution rates are made, this unfunded past service will be liquidated within 30 years. -6- dROE COUNTY, FLORIDA CARD SOUND ROAD AND BRIDGE TOLL FACILITY COMPUTATIONS OF TOLL REQU IP.E""E".TS PURSUANT TO INDENTURE AGREEMENT DATED JUNE 17, 196®l, ARTICLE 111 , SECTION 3.04 (A) FOR THE YEARS ENDED SEPTEMBER 30, 1984 AND 1983 194 1983 15 of interest expense $ 94,354 $ 103,790 Bond principal amortization requirements 97,307 9 ,571 Cost of operations and maintenance 206,246 160,403 Renewal and replacement fund transfer 15 000 15,000 Annual tolls required 41 ,907 377,74 Actual collections 606,436 396,23 Excess for the year 193,529 18,459 Cumulative deficiency, October 1 993,335 1,011 ,794 Cumulative deficiency, September 30 $ 799, 06 $ 993,335 -7- KENIP �d ROSASCO Certified Public Accountants 1438 KENNEDY DR. #12 LUANI PLAZA 9 P. 0. BOX 309 KEY WEST, FL 33041-0309 ORVIS M. KEMP, C.P.A. (305) 294-2581 MEMBER OF AMERICAN INSTITUTE WM. O. KEMP, C.P.A. AND FLORIDA INSTITUTE OF PETER L. ROSASCO, Jr., C.P.A. CERTIFIED PUBLIC ACCOUNTANTS MARVA I. GREEN, C.P.A. DEREK PARKER, C.P.A. Honorable Members of the Board of County Commissioners Monroe County, Florida Dear Sirs® We have examined the balance sheets of Monroe County Card Sound Road and Bridge Toll Facility (the "Bridge") as of September 30, 1984 and 1983 and the related statements of revenues and expenses and fund equity and of changes in financial position for the years then ended and have rendered our opinion thereon dated February 14, 1985. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In connection with our examination and with the exception of the item men- tioned below, nothing came to our attention that caused us to believe that the Bridge was not in compliance with any of the terms covenants, provisions or conditions of Section 3.04, Article 111 , of the Indenture Agreement dated June 17, 1967, relating to the Bridge Revenue Bonds® However, it should be noted that our examination was not conducted primarily towards obtaining knowledge of such noncompliance. Pursuant to Section 3.04(A), Article 111 of the Indenture Agreement, we have examined the accompanying computation of toll requirements for the years ended September 30, 1984 and 1983. In our opinion, the computation has been made in accordance with relevant provision of the Indenture Agreement® 4X10 p6jJ411 Kemp & Rosasco Certified Public Accountants February 14, 1985