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Fiscal Year 1984 & 1985 MONROE COUNTY,FLORIDA CARD SOUND ROAD AND BRIDGE TOLL FACILITY FINANCIAL STATEMENTS SEPTEMBER 30, 1985 AND 1984 KEW & ROSASCO CERTIFIED PUBLIC ACCOUNTANTS CONTENTS Pa e Independent Auditors' Opinion 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 1 KEMP & ROSASCO Certified Publie Aeeountants 1438 KENNEDY DR. #12 LUANI PLAZA a P. O. BOX 1529 KEY WEST, FL 33041-1529 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. RCSASCO, Jr., C.P.A. CERTIFIED PUBLIC ACCOUNTANTS MARVA E. GREEN, C.P.A. JOSEPH W. HENDERSON, 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, 1985 and 1984, 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, 1985 and 1984, 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® Kemp & Rosasco Certified Public Accountants February 21 , 1986 C�-O\ M N� h� O N n N d CD M O-O m O M �O O� M �O h O\ M h O Off', NE C N M ID 10 ct t- Itl N O h CO W 4 M M N M 7 N m- ol h h N O n Nl O� O ol N M m i11 co N 1O M O Itl d' I^�' M' --1p 1[1 W I-N co n O tin O N co ul O\ �00 N h.. W O M M M O�O N V I'- �+l 1� N•-lO lD N N i11 M N M O N O N 10'. N O N O M a h N'o O CO I[l lD-of O� •7. N � M T co t N N � W N E � C } >- n E u W } N (D U � } a) w C > f0 10 w - L Q O L W - a p a N >-v N W: J .. 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L 3 i- 1 +c L } N L .c I- - tO V O ~ C In V L �p C U J 10 to L L U< -U-<p U O N O L N U D" a J MONROE COU"dTY, FLORIDA CARD SOUND ROAD AND BRIDGE TOLL FACILITY STATEMENTS OF REVENUES, EXPENSES AND FUND EQUITY FOR THE YEARS ENDED SEPTEMBER 30, 1985 AND 1984 1985 1984 Operating Revenues - Tolls $ 686,693 606,436 Operating Expenses: Personal services 136,517 19,962 Depreciation 46,042 453,986 Repairs and maintenance 16,276 38,799 Operations 30JI231 21 ,60 Professional services 19,219 15,855 Total Operating Expenses 2.48,285 252,232 Operating Income 438 408 354,20 Nonoperating Revenue (Expense) : Interest income 43,242 29,565 Interest expense and paying agent fees (61 ,308) (78,355) Gain (Loss) on redemption of bonds ( 16,595) 4,232 Total Nonoperating Revenue (Expense) (34,661 ) (441558) Net Income 403,747 309,646 Fund Equity, October 1 998,938 689,292 Fund Equity, September 30 $ 1 ,402,685 998,938 The accompanying notes are an integral part of these financial statements. -3- M01"IROE COUNTY FLORIDA CARD SOUND ROAD AND TOLL BRIDGE FACILITY STATEMENTS OF CHANGES IN FINANCIAL POSITION FOR THE YEARS ENDED SEPTEMBERJO 1985 AND 1984 1985 1984 Sources of Working Capital : Operations: Net Income $ 403,747 $ 309,646 Items not requiring current outlay of working capital : Depreciation 46,042 45,986 Amortization of discounts on bonds 7,565 .....11838 Working Capital Provided By Operations $ 457,354 $ 357.0470 Uses of Working Capital : ( Increase) Decrease in liabilities payable from restricted assets: Interest $ 2.0108 $ 552 Revenue bonds 440,000 115,000 Contracts payable 4,456 (6_1762) Total Decrease in Liabilities Payable from Restricted Assets 446,564 108.0790 Increase in restricted assets 8.0276 250.0237 Property additions 795 188 Increase (Decrease) in working capital 1,759 1_?745 Total Uses of Working Capital $ 457,394 $ 360.0960 Increase (Decrease) in Components of Working Capital : Cash $ (11,296) $ 141- 117 Accounts receivable 424 36 Accounts payable 141-220 ( 15.0898) Accrued annual leave ( 1 589) Net Decrease in Working Capital $ 1 .0759 $ (1 .0745) The accompanying notes are an integral part of these financial statements. -4- MONROE COUNTY, FLORIDA CARD SOUND ROAD AND TOLL BRIDGE FACILITY NOTES TO FINANCIAL STATEMENTS SEPTEBER 30, 1985 AND 1984 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES General - The Monroe County Card Sound Road and Bridge Toll Facility (the "Bridget') is an instrumentality of Monroe County (the "County") authorized to own and operate the Monroe County Card Sound Bridge. Basis of Accounting - 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: Description 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- MONROE COUNTY, FLORIDA CARD SOUND ROAD AND BRIDGE TOLL FACILITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1985 AND 1984 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, 1985 and 1984, as required and defined by the System, approximated $ 12,698 and $ 10,878 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® MONROE COUNTY, FLORIDA CARD SOUND ROAD AND BRIDGE TOLL FACILITY COMPUTATIONS OF TOLL REQUIREMENTS PURSUANT TO INDENTURE AGREEMENT DATED JU E 17, 1967, ARTICLE 111 , SECTION .04 (A) FOR THE YEARS ENDED SEPTEMBER 30, 195 AND 194 1985 1984 125 of interest expense $ 74,669 94,354 Bond principal amortization requirements 68,750 97,307 Cost of operations and maintenance 202,243 206,246 Renewal and replacement fund transfer i5,000 15,000 Annual tolls required 360,662 412,907 Actual collections 686,693 606,436 Excess for the year 326,031 193,529 Cumulative deficiency, October 1 799,806 993,335 Cumulative deficiency, September 30 $ 4733,775 $ 799, 06 -7- KEMP !Ed ROSASCO Certified Public Accountants 1438 xEmmenY DR. #l2 LUAN! PLAZA e P. 0. BOX 1529 KEY vvE5r' F| 33041-1529 ORWSaA. KEMP. C.P.x. (305) 2942581 mEmaEm OF AmE0CAN INSTITUTE VVM. 0. KEwP, [P.A. AND FLORIDAm\ INSTITUTE OF CERTIFIED pVsu|C ACCOUNTANTS PETER L. R��*5[o' Jr., [�P�x� mAow\ E EREGN. C.P.A. JOSGpx W. n5wD5R5Om' 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, 1985 and 1984 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 21 , 1986° 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, 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 1l1 of the Indenture Agreement, we have examined the accompanying computation of fo| | requirements for the years ended September 30° 1985 and 1984. In our opinion, the computation has been made in accordance with relevant provision of the Indenture Agreement. � 64�' T 0����. ' Kemp & Rosaaoo Certified Public Accountants February 21 , 1986 -o-