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Fiscal Year 1982 & 1983 4 MONROE COUNTY, FLORIDA ' CARD SOUND ROAD AND BRIDGE TOLL FACILITY FINANCIAL STATEMENTS SEPTEMBER 30, 1983 AND 1982 Y KEMP 8 ROSASCO CERTIFIED PUBLIC ACCOUNTANTS 4 CONTENTS Page i Independent Auditors' Opinion 1 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 'Y a KEMP f4 ROSASCO Certified Public Accountants 1438 KENtJE DV DR. MEMBER OF AMERICAN INSTITUTE ORVIS M. KEMP, C.P.A. #12 LUANl PLAZA 1• P. O. BOX 309 AND FLORIDA INSTITUTE OF WM. O. KEMP, C.P.A. KEY WEST, FL 33041 0309 CERTIFIED PUBLIC ACCOUNTANTS PETER L. ROSASCO, Jr., C.P.A. (305) 294.2581 MARVA E. GREEN, 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, 1983 and 1982, and the related State- ments of Revenues, Expenses, and Fund Equity, and Changes in Financial Posi- tion 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 considered 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, 1983 and 1982, 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- 'y 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. 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N } N E m >•1] > t U n m 4- 0 E'o O } } O N U O } c - + N L O L +L C m L O N O yr n•- d F - L }s > L Ul N > U N O m•- U U O:U C¢0 1L tY M J MONROE COUNTY, FLORIDA CARD SOUND ROAD AND BRIDGE TOLL FACILITY STATEMENTS OF REVENUES, EXPENSES AND FUND EQUITY FOR THE YEARS ENDED SEPTEMBER 30, 1983 AND 1982 1983 1982 Operating Revenues - Tolls $ 396,223 $ 377,465 Operating Expenses: Personal services 122,806 113,631 Professional services 34,078 32,759 Repairs and maintenance 3,519 91,034 Depreciation 66, 145 66,219 Total Operating Expenses 226,548 303,643 Operating Income 169,675 73,822 Nonoperating Revenue ( Expense) : Interest income 20,734 22,060 Interest expense & paying agent fees (83,032) (88, 171) Other 5,669 28,813 Total Nonoperating Revenue (Expense) (56,629) (37,298) Net Income 113,046 36,524 ' Fund Equity, October 1 576,246 539,722 Fund Equity, September 30 $ 689,292 $ 576,246 • The accompanying notes are an integral part of these financial statements. i -3_ MONROE COUNTY, FLORIDA CARD SOUND ROAD AND TOLL BRIDGE FACILITY STATEMENTS OF CHANGES IN FINANCIAL POSITION FOR THE YEARS ENDED SEPTEMBER 30, 1983 AND 1982 1983 1982 Sources of Working Capital : Operations:Net Income $ 113,046 $ 36,524 Items not requiring current outlay of working capital : Depreciation 66, 145 66,219 Amortization of discounts on bonds 1,908 3,290 Working Capital Provided By Operations 181 ,099 106,033 Decrease in working capital - 1 Total Sources of Working Capital $ 181,099 $ 106,034 Uses of Working Capital : Decrease in liabilities payable from restricted assets: Interest $ 239 $ 767 Revenue bonds 55,000 155,000 Total Decrease in Liabilities Payable from Restricted Assets 55,239 155,767 Increase (Decrease) in restricted assets 125,860 (49,791) Property additions - 58 Total Uses of Working Capital 8 181 ,099 $ 106,034 Increase (Decrease) In Components of Working Capital : Cash S 2, 525 $ 394 Accounts payable (2,525) 395 (Decrease) In Working Capital $ - $ ( 1) The accompanying notes are an integral part of these financial statements. -4- MONROE COUNTY, FLORIDA CARD SOUND ROAD AND BRIDGE TOLL FACILITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1983 AND 1982 NOTE 1 - 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 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 sufficient 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 amor- tization, 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, 1983 AND 1982 • 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, 1983 and 1982, as required and defined by the System, approximated $ 10,662 and $ 9,992 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 $4.3 billion as of July 1, 1980, 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. 1 -6- MONROE COUNTY, FLORIDA CARD SOUND ROAD AND BRIDGE TOLL FACILITY COMPUTATIONS OF TOLL REQUIREMENTS PURSUANT TO INDENTURE AGREEMENT DATED JUNE 17, 1967, ARTICLE 111, SECTION 3.04 (A) FOR THE YEARS ENDED SEPTEMBER 30, 1983 AND 1932 1983 1982 125% of Interest expense $ 103,790 $ 110,214 Bond principal amortization requirements 98,571 153,253 Cost of operations and maintenance 160,403 237,424 Renewal and replacement fund transfer 15,000 15,000 Annual tolls required 377,764 515,891 Actual collections 396,223 377,465 Excess (Deficiency) for the year 18,459 ( 138,426) Cumulative deficiency, October 1 1 ,011,794 873,368 Cumulative deficiency, September 30 $ 993,335 $ 1 ,011,794 _7_ KEMP £4 ROSASCO Certified Public Accountants 1438 KENNEDY DR. MEMBER OF AMERICAN INSTITUTE ORVIS M. KEMP, C.P.A. #12 LUANI PLAZA • P. O. BOX 309 WM. O. KEMP, C.P.A. KEY WEST, FL 33041-0309 AND FLORIDA INSTITUTE OF PETER L. ROSASCO, Jr., C.P.A. (305) 294-2581 CERTIFIED PUBLIC ACCOUNTANTS MARVA E. GREEN, 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, 1983 and 1982 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 10, 1984. 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, 1983 and 1982. In our opinion, the computation has been made in accordance with relevant provision of the Indenture Agreement, and such com- putation shows a deficiency in the amount of toll collections at the Bridge for the year ended September 30, 1982. However, it should be noted that toll rates have been increased in accordance with the recommendation of the con- sulting engineers so as to correct the delticiency. 40isirdelleerI • Kemp 8 Rosasco Certified Public Accountants February 10, 1984