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Home My WebLink About01-23-1980 Special MeetingSTATE OF ALABAMA COUNTY OF BALDWIN X We, the undersigned members of the Fairhope City Council, do hereby waive notice of a special called meeting to be held January 23, 1980 at 5:00 p.m., City Administration Building, 387 Fairhope Avenue, Fairhope, Alabama., for the purpose of reviewing the Annual Audit for the Fiscal Year 1978-79. 7 1 /l i . i? 4'�w = " A�'z Counci _ r 0 Attest i City Ctork 136 (Jan 23.'80) The City Council, City of Fairhope, met in special session at 5:00 p.m., 387 Fairhope Avenue, City Administration Building, Fairhope, Alabama. 36532, on Wednesday; 23 January 1980. The purpose of this meeting was to review the 1978-79 Annual Audit as prepared by Parker & White, P.A., which had been accepted by the Council in regular session on January 14th. Present were Mayor James P. Nix; Councilmehbers Jack A. Stipes, Sam E. Box, Sr,. Trisha Nelson and C.O. McCawley; City Clerk Evelyn Phillips. Councilman David E. Bishop could not be present. Mr. Ken Hanak, Mr. Pete White, and Mrs. Arla Kern, representing Parker & White, reviewed each section of the Audit with the Council. The Council expressed their appreciation for a well -prepared and presented Audit. No further action was taken. Meeting was duly adjourned. THE CITY OF FAIRHOPE, ALABAMA GENERAL GOVERNMENT AUDIT REPORT SEPTEMBER 30, 1979 PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS. P.C. CITY OF FAIRHOPE, ALABAMA GENERAL GOVERNMENT AUDIT REPORT SEPTEMBER 30, 1979 CONTENTS Accountants' opinion Financial statements: Consolidated statement of financial position - General Government General Fund Statement of financial position Statement of changes in fund balance Statement of revenue Statement of expenditures 1977-1978 Public Improvement Assessment Fund Statement of financial position Statement of changes in fund balance Statement of revenue and expenditures General fixed assets Statement of general fixed assets Statement of changes in general fixed assets Statement of general long term debt Summary of debt service requirements to maturity Notes to the financial statements Page 1 2 3 4 5 6 10 11 12 13 14 15 UP 17 PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS. P.C. SAMUEL F. PARKER DEWEY E. WHITE LESLIE T. FICKLING H. ALLEN JORDAN XAVIER A. HARTMANN. III J. KENNETH HANAK 1 PARKER AND WHITE, P.C. CERTIFIED PUBLIC ACCOUNTANTS FOLEY, ALABAMA ACCOUNTANTS' OPINION December 5, 1979 Honorable James P. Nix, Mayor and Members of the City Council City of Fairhope, Alabama MEMBER, AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS We have examined the consolidated and individual statements of financial position of the General Government, General Fund and the 1977-1978 Public Improve- ment Assessment Fund, the statement of general fixed assets and the statement of general long term debt of the City of Fairhope, Alabama as of September 30, 1979 and 1978 and the related statements of revenue and expenditures and statements of changes in fund balance 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. The accompanying financial statements do not include the assets and liabilities or operating results of the Utility Funds and Recreation Fund of the City of Fairhope, Alabama. In our opinion the accompanying financial statements referred to above present fairly the financial position of the General Government of the City of Fairhope, Alabama at September 30, 1979 and 1978 and the results of its operations for the years then ended, in conformity with generally accepted accounting principles applicable to governmental entities, on a basis consistently applied. Certified Public Accountants PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS. P.C. 2 CITY OF FAIRHOPE, ALABAMA CONSOLIDATED STATEMENT OF FINANCIAL POSITION GENERAL GOVERNMENT SEPTEMBER 30, 1979 AND 1978 ASSETS 1979 1978 CASH On hand $ 200 $ 150 In First National Bank of Baldwin County (Note 3) 518,453 257,785 In Merchants National Bank of Mobile 51,879 - 570,532 257,935 RECEIVABLES Street improvement assessments (Note 2) 339,644 44,499 Federal Disaster Assistance Administration 19,418 12,679 Federal Emergency Management Agency 32,808 - Federal Aviation Administration 50,683 - Due from other funds of the City of Fairhope: Electric Fund 115,677 168,040 Natural Gas Fund 23,860 75,866 Water and Wastewater Fund 59,555 78,761 Recreation Fund 1,224 813 All other receivables 9,314 6,864 Allowance for doubtful accounts (1,355) (1,500) 650,828 386,022 FIXED ASSETS Construction work in progress 234,995 502,287 General fixed assets 3,850,331 3,408,993 4,086,326 3,911,280 TOTAL ASSETS $5,307.686 $4,555,237 LIABILITIES AND FUND BALANCE LIABILITIES General obligation notes payable $ - $ 486,672 Accounts payable, trade 69,400 22,338 Contracts payable 98,650 81,901 Accrued expenses payable 25,485 72,422 General obligation warrants and bonds payable (Note 5) 1,685,000 805,000 TOTAL LIABILITIES 1,878,535 1,468,333 FUND BALANCES 3,429,151 3,086,904 TOTAL LIABILITIES AND FUND BALANCES $5,307,686 $4,555,237 See notes to financial statements. PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS. P.C. CITY OF FAIRHOPE, ALABAMA GENERAL FUND STATEMENT OF FINANCIAL POSITION SEPTEMBER 30, 1979 AND 1978 ASSETS 1979 1978 CASH On hand $ 200 $ 150 In First National Bank of Baldwin County 374,559 244,589 In Merchants National Bank of Mobile 6,248 - 381,007 244,739 RECEIVABLES Street improvement assessments 35,493 44,499 Federal Disaster Assistance Administration 19,418 12,679 Federal Emergency Management Agency 32,808 - Federal Aviation Administration 50,683 - Due from other funds of the City of Fairhope: 1977-1978 Public Improvement Assessment Fund 96,041 - Electric Fund 115,677 168,040 Natural Gas Fund 23,860 75,866 Water and Wastewater Fund 59,555 78,761 Recreation Fund 1,224 813 All other receivables 7,150 6,864 Allowance for doubtful accounts (1,355) (1,500) 440,554 386,022 TOTAL ASSETS $ 821,561 $ 630.761 LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable, trade $ 69,400 $ 22,338 Contracts payable 73,878 34,156 Payroll taxes payable 17,330 14,163- Employees' retirement payable 7,489 45,980 Sundry payables 666 50 General obligation note payable - 44,714 Due to 1977-1978 Public Improvement Assessment Fund - 2,449 TOTAL LIABILITIES 168,763 163,850 FUND BALANCE 652,798 466,911 TOTAL LIABILITIES AND FUND BALANCE $ 821,561 $ 630,761 See notes to financial statements. PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS. P.C. CITY OF FAIRHOPE, ALABAMA GENERAL FUND STATEMENT OF CHANGES IN FUND BALANCE FOR THE YEARS ENDED SEPTEMBER 30, 1979 AND 1978 1979 1978 FUND BALANCE AT BEGINNING OF YEAR $ 466,911 $ 482,138 Add: Proceeds of general obligation various purpose warrants, dated Decmeber 1, 1978 Less: Amount expended during year as General Fund expenditures General Fund revenues General Fund expenditures FUND BALANCE, AT END OF YEAR 310,300 (149,852) 160,448 1,555,614 1,530,175 25,439 $ 652,798 See notes to financial statements. PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS P.C. 1,324,530 1,339,757 (15,227) $ 466,911 CITY OF FAIRHOPE, ALABAMA GENERAL FUND STATEMENT OF REVENUE FOR THE YEARS ENDED SEPTEMBER 30, 1979 AND 1978 1979 1978 PROPERTY TAXES Real estate $ 125,840 121,189 Motor vehicle 39,943 38,775 165,783 159,964 LOCAL TAXES Beer tax 25,671 26,132 Liquor tax 12,422 10,790 Dog tax . I 186 286 38,279 37,208 LICENSES AND PERMITS Business licenses 101,059 91,925 Beer and liquor licenses 730 495 Job license fees 2,175 1,707 Building permits 10,777 7,398 Rezoning permits 892 741 Insurance company franchises 32,379 25,725 - 148,012 127,991 FINES AND FORFEITURES 74,001 51,640 STATE OF ALABAMA State gasoline tax 31,553 31,786 Share of state liquor profits 14,801 14,471 Financial institution excise tax 21,068 29,221 Motor vehicle licenses 1,755 1,508 Oil production privilege tax 106 90 Grant, Law Enforcement Protection Agency 1,828 -0- Grant, Airport Project -0- 33,000 Grant, parking revolving 200 -0- 71,311 110,076 UNITED STATES GOVERNMENT Federal Revenue Sharing 46,015 42,298 Federal Aviation Administration 50,683 317,128 Federal Anti -recession -0 2,840 Federal Emergency Managment Agency 32,808 -0- Federal Disaster Assistance Administration 171,443 12,679 300,949 374,945 (continued) PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS. P.C. 5 1979 1978 INTEREST AND RENTS Interest - bank deposits $ 16,296 $ 2,949 Interest - street improvement assessments 2,466 2,705 Municipal airport lease 7,890 4,187 Municipal pier lease 3,809 4,431 Fishing dock stall rentals 3,174 5,151 Other rents 1,365 1,220 35,000 20,643 CHARGES FOR SERVICES Sanitation collection 99,366 97,138 Dog pound fees 213 1,008 99,579 98,146 OTHER REVENUE Beach revenue 21,619 23,536 Donations: Fairhope Single Tax Colony 34,539 5,000 Sale of fixed assets 14,742 -0- Grant, South Alabama Regional Planning Commission 4,424 7,500 Miscellaneous income 7,524 7,048 82,848 43,084 LOAN PROCEEDS DISBURSED 149,852 -0- TRANSFERS FROM UTILITY FUNDS Electric Fund 205,000 160,000 Natural Gas Fund 185,000 140,833 390,000 300,833 TOTAL REVENUE $1.555.614 $1.324.530 See notes to financial statements. PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS. P.C. CITY OF FAIRHOPE, ALABAMA GENERAL FUND STATEMENT OF EXPENDITURES FOR THE YEARS ENDED SEPTEMBER 30, 1979 AND 1978 1979 1978 GENERAL GOVERNMENT Salaries: Mayor and Council $ 91100 $ 9,600 City Clerk and assistants 14,338 16,292 Surveyor, building inspector, janitor and mechanics 17J66 16,804 City attorney 3,000 3,000 City judge 4,330 3,700 Convention and travel expenses 2,953 2,571 Audit fees 4.,000 6,050 Accounting services 2,750 220 Legal fees 28,442 1,597 General supplies and maintenance 11,858 15,398 Office supplies and postage 6,444 7,948 Telephone 5,742 5,441 Computer service 1,163 1,147 Automobile travel allowances 1,338 1,451 Publications in newspaper 2,088 2,994 Dues and memberships 4,863 3,780 Insurance, casualty 27,674 20,799 Colony rent 922 1,184 Payroll taxes 2,467 2,426 Employees' retirement expense 2,380 2,380 Employees' medical insurance 4,994 4,670 Municipal airport operating expenses 3,766 2,556 Sanitaion contract and expenses 73,597 67,160 Baldwin County property reappraisal program - 1,113 Bad debts expense - 3,223 Engineering fees 305 541 Professional services 3,806 2,786 Employees' Christmas bonus - 2,775 Ad valorem tax refund - 2,976 Eastern Shore Chamber of Commerce - 1,200 Miscellaneous 1,529 2,874 Freight 238 42 Shuttle bus expense 1,602 - Musak 300 200 WArrant issue costs 14,191 - Maintenance - Adult Recreation Center 492 - Maintenance - Fisherman's Wharf 100 717 Casual labor - football games - 438 257,938 218,053 (continued) See notes to financial statements. PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS. P.C. 7 1979 1978 BEACH DEPARTMENT Salaries $ 7,344 $ 7,421 Beach repairs and maintenance 3,495 6,360 Beach decals 1,320 - Payroll taxes 456 453 Transfer to Recreation Fund 3,000 - 15,615 14,234 POLICE DEPARTMENT Salaries 178,473 156,447 Automobile expenses 20,979 19,074 Maintenance of radio equipment 512 459 Jail and police supplies 3,831 3,766 Uniforms 2,019 4,262 Training 803 645 Police annuity and driver education funds 4,216 2,684 Prisoners' meals 890 1,003 Payroll taxes 11,262 9,523 Employees' retirement expense 13,272 13,272 Employees' medical insurance 12,095 11,307 NCIC data system 3,064 - Liability insurance 4,140 3,652 Miscellaneous 464 368 Repairs and general maintenance 2,839 936 258,859 227,398 FIRE DEPARTMENT Salaries 46,320 39,200 Gasoline and oil 1,204 784 Supplies 4,633 5,170 Vehicle and equipment repairs 3,322 2,157 Repairs and general maintenance 443 - Training 2,310 498 Insurance - Volunteer Fire Dept. 675 675 Miscellaneous 96 250 Payroll taxes 2,922 2,381 Employees' retirement expense 1,876 1,876 Employees' medical insurance 3,670 3,430 67,471 56,421 (continued) See notes to financial statements. PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS. P.C. STREET DEPARTMENT Salaries Gasoline and oil Repairs and maintenance Materials and supplies Equipment rental Uniforms Payroll taxes - vehicles and equipment Employees' retirement expense Employees' medical insurance STAFF AGENCIES AND APPROPRIATIONS Staff agencies: Planning board Industrial board Appropriations: Fairhope Ambulance Service Fairhope Public Library: Monthly appropriation Salaries and other expenses Baldwin County Mental Health Baldwin County Civil Defense DEBT SERVICE General obligation warrants Interest OTHER EXPENDITURES Municipal airport - runway strengthening project Extraordinary losses: (Note 6) Flood damage repair cost Hurricane damage repair cost 1979 1978 $ 153,589 $ 129,711 22,900 16,124 42,238 43,182 35,495 35,732 6,167 13,094 665 312 9,707 7,890 10,472 10,472 13,216 12,355 294,449 268,872 207 235 75 - 4,000 58,100 51,359 8,119 6,074 4,200 4,200 144 108 70,845 65,976 (continued) See notes to financial statements. PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS. P.C. 40,000 40,000 45,184 35,625 85,184 75,625 50,683 325,686 262,198 15,849 24,830 - 337,711 341,535 1979 CAPITAL EXPENDITURES General Government: Remodeling Adult and Tourist Recreation Center $ 3,580 Office furniture, fixtures and equipment 2,301 Police Department: Two automobiles. 9,206 Office furniture and equipment 457 Fire Department: Equipment 336 Street Department: Drainage pipe and materials for sidewalks 28,123 Two dump trucks 36,944 Tractor 18,356 Various other equipment 4,143 Sanitation Department: Garbage transfer station 10,367 Trailer 28,290 Total capital purchases prior year: Municipal airport - General Government - Police Department - Fire Department - Street Department - 142,103 TOTAL EXPENDITURES $1,530,175 See notes to financial statements. PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS P.C. R 1978 40,000 9,423 15,522 3,632 3,066 71,643 $1,339,757 10 CITY OF FAIRHOPE, ALABAMA 1977-1978 PUBLIC IMPROVEMENT ASSESSMENT FUND STATEMENT OF FINANCIAL POSITION SEPTEMBER 30, 1979 AND 1978 ASSETS 1979 1978 CASH In First National Bank of Baldwin County: Checking account $ 2,053 $ 13,196 Savings account 41,841 - Certificate of deposit 100,000 In Merchants National Bank of Mobile: Bond sinking funds 45,631 - 189,525 13,196 RECEIVABLES 1977-1978 assessments 304,151 - City of Fairhope, General Fund - 2,449 Accrued interest 2,164 - 306,315 2,449 FIXED ASSETS Construction work in progress 235,995 502,287 TOTAL ASSETS $ 731.835 $ 517.932 LIABILITIES AND FUND BALANCE LIABILITIES General obligation notes payable - First National Bank of Baldwin County $ - $ 441,958 Contracts payable 24,772 47,745 Accrued interest payable - 12,229 Due to City of Fairhope General Fund 96,041 - General obligation public improvement bonds payable 400,000 - General obligation various purpose warrants payable 224,700 - TOTAL LIABILITIES 745,513 501,932 FUND BALANCE (DEFICIT) (13,678) 16,000 TOTAL LIABILITIES AND FUND BALANCE $ 731.835 $ 517.932 See notes to financial statements. PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS. P.C. 11 CITY OF FAIRHOPE, ALABAMA 1977-1978 PUBLIC IMPROVEMENT ASSESSMENT FUND STATEMENT OF CHANGES IN FUND BALANCE FOR THE YEARS ENDED SEPTEMBER 30, 1979 AND 1978 FUND BALANCE AT BEGINNING OF YEAR Add: 1977-1978 assessments roll Less: Excess expenditures over revenue Transfer of completed street construction to General Fund, General Fixed Assets Transfer of completed water and wastewater improvements to Water and Wastewater Fund FUND BALANCE (DEFICIT) AT END OF YEAR 1979 1978 $ 16,000 $ - 416,150 16,000 13,678 - 242,034 - 190,116 - (445,828) - $ (13,678) $ 16,000 See notes to financial statements. PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS P.C. 12 CITY OF FAIRHOPE, ALABAMA 1977-1978 PUBLIC IMPROVEMENT ASSESSMENT FUND STATEMENT OF REVENUE AND EXPENDITURES FOR THE YEAR ENDED SEPTEMBER 30, 1979 REVENUE Interest income: Bank deposits Assessments Total revenue EXPENDITURES Debt service, interest EXCESS EXPENDITURES OVER REVENUE See notes to financial statements. PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS. P.C. $ 5,679 477 6,156 19,834 $ (13,678) 13 CITY OF FAIRHOPE, ALABAMA GENERAL GOVERNMENT. STATEMENT OF GENERAL FIXED ASSETS SEPTEMBER 30, 1979 ASSETS Land and buildings $ 250,842 Municipal beach and pier 644,719 Municipal airport 510,449 Street paving and improvements 1,362,564 Municipal fishing dock 29,572 Equipment 431,768 Recreational facilities 620,417 TOTAL GENERAL FIXED ASSETS $j.850.331 INVESTMENT INVESTMENT IN GENERAL FIXED ASSETS OCTOBER 1, 1978 $3,408,993 Add: Acquisitions during the current year 464,987 3,873,980 Less: Retirement during the current year 23,649 INVESTMENT IN GENERAL FIXED ASSETS SEPTEMBER 30, 1979 $3.850,331 See notes to financial statements. PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS. P.C. 14 CITY OF FAIRHOPE, ALABAMA GENERAL GOVERNMENT STATEMENT OF CHANGES IN GENERAL FIXED ASSETS FOR THE YEAR ENDED SEPTEMBER 30, 1979 LAND AND BUILDINGS Park property City garage property Sundry property City administration building Police and fire station City garage and warehouse Civic Center building City pound MUNICIPAL BEACH AND PIER MUNICIPAL AIRPORT MUNICIPAL FISHING DOCK STREET PAVING AND IMPROVEMENTS EQUIPMENT Police Department Fire Department Street Department General Government Sanitation Department RECREATIONAL FACILITIES Land Stimpson Field Tennis courts Swimming pools Bath houses and restrooms Equipment Fencing Young Street building Football stadium and General Fixed Assets Oct.l, 1978 Additions $ 1,000 $ 29,090 8,106 82,792 64,682 45,974 12,080 2,000 245,724 644,719 522,449 29,572 1,092,407 5,118 5,118 270,157 6 12,000 General Fixed Assets Sept.30,1979 $ 1,000 29,090 8,106 82,792 64,682 45,974 17,198 2,000 250,842 644,719 510,449 29,572 1,362,564 60,404 9,663 10,837 59,230 87,777 336 88,113 162,052 59,443 221,495 22,289 2,301 317 24,273 -0- 38,657 38,657 332,522 110,400 11,154 431,768 64,000 64,000 79,312 79,312 25,033 25,033 103,186 103,186 31,597 31,597 6,013 495 5,518 15,856 15,856 3,667 3,667 buildings 292,248 541,600 79,312 TOTALS $3.408 M $ 464.987 See notes to financial statements. PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS. P.C. 292,248 495 620,417 $ 23.649 $3.850.331 15 CITY OF FAIRHOPE, ALABAMA GENERAL GOVERNMENT STATEMENT OF GENERAL LONG TERM DEBT SEPTEMBER 30, 1979 AMOUNT AVAILABLE AND TO BE PROVIDED FOR THE PAYMENT OF GENERAL LONG TERM DEBT September 30, 1979 1978 Amount available in debt service funds $ 93,506 $ 51,308 Amount to be provided 1,591,494 753,692 TOTAL AVAILABLE AND TO BE PROVIDED $1.685,000 $ 805,000 GENERAL LONG TERM DEBT OUTSTANDING (Note 5) September 30, 1979 1978 General obligation refunding warrants (Dated June 30, 1975) $ 490,000 General obligation recreational warrants (Dated July 1, 1976) 260,060 General obligation various purposes warrants (Dated December 1, 1978) (Note 5) 535,000 General obligation public improvement bonds (Dated December 1, 1978) (Note 5) 400,000 TOTAL GENERAL LONG TERM DEBT OUTSTANDING $1,685.000 See notes to financial statements. PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS. P.C. $ 530,000 275,000 -0- -0- $ 805,000 CITY OF FAIRHOPE, ALABAMA GENERAL GOVERNMENT SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY SEPTEMBER 30, 1979 General Obligation Refunding Warrants Fiscal Total Year Principal Interest Requirements 1980 $ 40,000 $ 30,625 $ 70,625 1981 40,000 28,125 68,125 1982 40,000 25,625 65,625 1983 40,000 23,125 63,125 1984 40,000 20,625 60,625 1985 40,000 18,125 58,125 1986 50,000 15,625 65,625 1987 50,000 12,500 62,500 1988 50,000 9,375 59,375 1989 50,000 6,250 56,250 1990 50,000 3,125 53,125 1991 TOTALS $ 490,000 $ 193,125 $ 683.125 General Obligation Various Purpose Warrants Fiscal Total Year Principal Interest Requirements 1980 $ - $ 32,315 $ 32,315 1981 50,000 30,940 80,940 1982 50,000 28,140 78,140 1983 50,000 25,265 75,265 1984 55,000 22,193 77,193 1985 55,000 18,920 73,920 1986 55,000 15,551 70,551 1987 55,000 12,113 67,113 1988 55,000 8,677 63,677 1989 55,000 5,225 60,225 1990 55,000 1,746 56,746 1991 TOTALS $ 535,000 $ 201,085 $ 736,085 PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS. P.0 16 General Obligation Recreational Warrants Principal $ 15,000 15,000 15,000 20,000 20,000 20,000 20,000 25,000 25,000 25,000 30,000 30,000 $ 260,000 General Obligation Public Improvement -Bonds Principal $ 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 Interest $ 22,160 19,840 17,520 15,200' 12,880 10,560 8,240 5,920 3,580 1,200 Interest $ 14,262 13,362 12,462 11,675 10,625 9,575 8,525 7,425 6,050 4,675 3,300 1,650 Total Requirements $ 29,262 28,362 27,462 31,675 30,625 29,575 28,525 32,425 31,050 29,675 33,300 31,650 $ 103,586 $ 363,586 Total Requirements $ 62,160 59,840 57,520 55,200 52,880 50,560 48,240 45,920 43,580 41,200 $ 400.000 $__ 117,100 $ 517.100 See notes -to financial statements. Total General Obligation Principal and Interest Total Principal $ 95,000 145,000 145,000 150,000 155,000 155,000 165,000 170,000 170,000 170,000 135,000 30,000 $1,685,000 Total Interest $ 99,362 92,267 83,747 75,265 66,323 57,180 47,941 37,958 27,682. 17,350 8,171 1,650 $ 614,896 Total Debt Service Requirements $ 194,362 237,267 228,747 225,265 221,323 212,180 212,941 207,958 197,682 187,350 143,171 31,650 $2,299,896 PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS. P.C. 17 CITY OF FAIRHOPE, ALABAMA GENERAL GOVERNMENT NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1979 NOTE 1 SLT.%MRY OF SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies followed in the preparation of these financial statements. A. Basis of accounting The accounts of the General Fund are maintained and the accompanying financial statements have been prepared on a modified accrual basis. Under the modified accrual basis, expenditures other than accrued interest on general long term debt are recorded at the time liabilities are incurred and revenues are generally recorded when received in cash, except for certain revenues which are accrued when earned. B. The financial statements of the General Fund do not include the financial statements of the Utility Fund, the Recreation Fund or the Library Board Fund of the City of Fairhope. C. Valuation of fixed assets Capital acquisitions by the General Fund are recorded as an expenditure of the fund in the year of purchase. The asset is then recorded at cost in the General Fixed asset accounts. No provision is made for depreciation of fixed assets. Retired assets are removed at their respective costs. D. Proceeds of long term loans Proceeds of long term loans are recorded as an increase of the fund balance in the year of the loan. The liabilities, however, are carried in a separate Long Term Debt Fund. The cost of debt service, both interest and principal retirement, is charged as an expenditure in the year of payment. E. Retirement plan The City has a funded contributory retirement plan available to substantially all employees after specified periods of service and attainment of minimum age requirements. Annual contributions to the plan for current and past service costs are based on acturial estimates of the plan trustee, New England Mutual Life Insurance'Company. Contributions to the plan are accrued and expensed during the year in which the liability is incurred. Past service costs are being amortized over a 30 year period. PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS. ► C 18 I NOTE 2 STREET IMPROVaIENT ASSESSMENTS RECEIVABLE Street improvement assessment receivables as of September 30 consisted of unpaid assessments from the following years: - September 30, Year 1979 1978 1962 $ 151 $ 197 1963 1,449 1,449 1966 868 971 1970 , 7,262 10,068 1974 25,763 31,814 1977 304,151 - TOTALS $ 339.644 $ 44.499 NOTE 3 CASH IN BANK Cash in the First National Bank of Baldwin County consisted of the following balances applicable to the General Government at September.30: 1979 1978 Restricted accounts: Gasoline tax $ 12,025 Federal revenue sharing -0- Non restricted accounts: General operating 15,107 Payroll 400 Airport - checking and certificates of deposit 42,871 Beach revenue 19,465 1977-1978 street improvement project 2,053 Flood disaster 31,059 Senior citizens construction -0- Parking authority 4,987 Municipal fountain - savings 2,325 Industrial park - savings 4,421 Street assessments - savings 41,841 Certificate of deposit - street assessments 100,000 1978 warrant checking account 10,360 Certificate of deposit - warrant proceeds 195,506 Debt service accounts: Sinking fund, 1975 general obligation warrants 36,033 TOTALS $ 518,453 (continued) $ 52,187 (1,807) 25,570 2,472 30,721 13,292 13,196 148 4,529 4,987 2,210 4,203 -0- 60,000 -0- -0- 46 , 077 $ 257,785 PARKER AND WHITE. CERTIFIED PU9lIC ACCOUNTANTS P C. 19 NOTE 3 CASH IN BANK (continued) Cash in the gasoline tax and Federal revenue sharing accounts can be expended only for purposes approved by Federal and State regulations. Expendi- tures from these restricted accounts for the period covered by the accompanying statements were, in our opinion, in accordance with applicable regulations. The City of Fairhope's Federal revenue sharing funds and Federal anti recession funds received in fiscal years ended September 30, 1979 and 1978 were expended to the Fairhope Public Library Board for operating and maintenance of the Fairhope Public Library. NOTE 4 1977-1978 PUBLIC IMPROVEMENT ASSESSMENT FUND The 1977-1978 Public Improvement Assessment Fund was initiated to accumulate the cost of paving and water and sewer improvements and to assess and, collect assessments on the completed project. A portion of the project was still under construction at September 30, 1979. Property owners are assessed for their share of the cost. Also, on completion of the project the cost of the street paving is transferred to the General Fixed Assets Fund and the water and sewer improvements are transferred to the Water and Wastewater Fund. NOTE 5 GENERAL OBLIGATION LONG TERM DEBT The general obligation refunding, recreational and various purposes warrants and general obligation public improvement bonds are general obligations of the City of Fairhope, Alabama and are secured by a pledge of its full faith and credit. The general obligation 'recreational warrants and interest are being re- tired with the funds from the Recreation Capital Improvement Fund in the Recreation Fund. The general obligation public improvement bonds and $224,700 of the general obligation various purpose warrants principal and interest are being retired with funds from the 1977-1978 Public Improvement Assessment Fund. On December 28, 1978 the City issued $535,000 of general obligation various purpose warrants for the purpose of constructing certain street and water and sewer improvements,.repairing storm damage to streets, purchase certain equip- ment, purchase a garbage transfer station and to construct improvements to the City's electric system. On February 6, 1979 the City issued $400,000 of general obligation public improvement warrants for the purpose of retiring a general obligation note payable of $400,000 which was incurred to provide interim financing for construction of street and water and sewer improvements. PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS. P.C. 20 NOTE 6 EXTRAORDINARY LOSSES: Flood disaster - On July 26, 1978 the City experienced a severe and damaging rainfall. Flooding caused extensive damage'to City streets and utility systems. City estimates as to the cost of street systems repairs total approximately $300,000. Eighty per cent of qualifying expenditures for repairs will be reimbursed by Federal disaster assistance. Approved assistance commitments reflect that most of the City's street repairs will qualify for reimbursement. All repair costs were recorded in the period in- curred and Federal reimbursement was accrued at eighty per cent of those costs, which were considered to qualify for reimbursement. Hurricane disaster - On September 12 and 13, 1979 the City sustained considerable damage to its utility systems, buildings and recreational facilities when Hurricane Frederic struck the area. The Federal Emergency Management Agency is to reimburse the City for all un- insured costs related to restoring the City's utility systems, buildings and certain other facilities to their pre -hurricane condition. All repair costs were recorded in the period incurred and Federal reimbursement accrued in the amounts approved on the assistance commitments. FEMA is reimbursing the City for direct costs and some overhead expenses. NOTE 7 LITIGATION The City of Fairhope is involved as a defendent, in several 'cases. In the opinion of legal counsel for the City, the ultimate outcome of these pending proceedings will not have a materially adverse effect on its financial statements. L PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS. P.0 THE UTILITY FUNDS OF THE CITY OF FAIRHOPE, ALABAMA AUDIT REPORT SEPTEMBER 30, 1979 PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS. P.C. THE UTILITY FUNDS OF THE CITY OF FAIRHOPE, ALABAMA AUDIT REPORT SEPTEMBER 30, 1979 CONTENTS Accountants' opinion Consolidated statement of financial position Consolidated statement of operations and retained earnings Consolidated statement of changes in financial position Electric fund, statement of financial position Electric fund, statement of operations Natural gas fund, statement of financial position Natural gas fund, statement of operations Water and wastewater fund, statement of financial position Water and wastewater fund, statement of operations Notes to the financial statements Page 1 N 3 4 5 6 7 91 9 10 11 PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS. P.0 SAMUEL F. PARKER DEWEY E. WHITE LESLIE T. FICKLINO H. ALLEN JORDAN XAVIER A. HARTMANN. III J. KENNETH HANAK 1 PARKER AND WHITE, P.C. CERTIFIED PUBLIC ACCOUNTANTS FOLEY, ALABAMA ACCOUNTANTS' OPINION December 5, 1979 The Honorable James P. Nix, Mayor and Members of the City Council City of Fairhope, Alabama MEMBER, AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS We have examined the consolidated and individual statements of financial position of the Utility Funds of the City of Fairhope, Alabama as of September 30, 1979 and 1978 and the related consolidated statements of operations and retained earnings and changes in financial position and the individual statements of operations for the years then ended. Our exam- ination 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 accompanying financial statements referred to above present fairly the financial position of the Utility Funds of the City of Fairhope, Alabama as of September 30, 1979 and 1978 and the results of their operations and changes in financial position for the years then ended, in conformity with generally accepted accounting principles consistently applied. Certified Public Accountants PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS. P.C. THE UTILITY FUNDS OF THE CITY OF FAIRHOPE, ALABAMA CONSOLIDATED STATEMENT OF FINANCIAL POSITION SEPTEMBER 30, 1979 AND 1978 ASSETS 1979 1978 CURRENT ASSETS Cash in First National Bank of Baldwin County: Operating accounts $ 389,364 $ 469,781 Interest bearing accounts 215,183 182,019 Construction accounts 19,975 21,550 Sinking fund accounts 30,468 35,487 Cash in Merchants National Bank of Mobile, bond sinking funds 86,103 75,751 741,093 784,588 Receivables: Utility customers 283,786 239,812 Federal agencies 182,813 47,924 Other receivables 21,985 28,640 Allowance for uncollectible accounts (14,576) (42,408) 474,008 273,968 Materials inventories' 217,443 139,463 Prepaid operating expenses 23,136 22,862 Total current assets 1,455,680 1,220,881 SINKING FUNDS Merchants National Bank of Mobile, reserve and replacement funds 257,011 251,466 PROPERTY, PLANT AND EQUIPMENT (at cost) Electric system 2,275,593 2,141,188 Natural gas system 1,522,450 1,492,276 Water and wastewater system 4,417,883 4,012,340 8,215,926 7,645,804 Accumulated depreciation (2,492,005) (2,269,802) Total property, plant and equipment - net 5,723,921 5,376,002 OTHER ASSETS Unamortized debt cost 16,287 14,038 Unamortized deferred plant maintenance 31,945 38,436 Total other assets 48,232 52,474 TOTAL ASSETS $7,484,844 $6,900,823 PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS. P.C. f) CURRENT LIABILITIES Accounts payable, trade LIABILITIES AND CAPITALIZATION 1979 $ 355,769 Accrued expenses and taxes: Payroll taxes Employees retirement contribution Interest Salaries Utility taxes Employee withholdings General obligation note payable First National Bank of Baldwin County Customer deposits Revenue bonds and general obligation warrants payable (Note 3) Total current liabilities NON CURRENT LIABILITIES Revenue bonds and general obligations warrants payable (Note 3) Due General Fund of City of Fairhope Total non current liabilities Total liabilities CAPITALIZATION Contributions and grants in aid of construction Retained earnings Total capitalization TOTAL LIABILITIES AND CAPITALIZATION See notes to financial statements. 13,345 8,961 35,340 9,991 13,827 761 82,225 208,506 132,000 778,500 2,147,000 199,092 2,346,092 3,124,592 1,513,534 2,846,718 4,360,252 $7,484,844 1978 $ 2572025 11,571 27,790 29,683 12,716 81,760 151,250 178,986 125,000 794,021 1,919,000 322,668 2,241,668 3,035,689 1,256,795 2,608,339 3,865,134 $6,900,823 PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS. P.C. THE UTILITY FUNDS OF THE CITY OF FAIRHOPE, ALABAMA CONSOLIDATED STATEMENT OF OPERATIONS AND RETAINED EARNINGS FOR THE YEARS ENDED SEPTEMBER 30, 1979 AND 1978 1979 1978 OPERATING REVENUES Electric fund $2,240,372 $2,126,193 Natural gas fund 1,384,870 1,340,529 Water and wastewater fund 509,186 435,330 Total operating revenues 4,134,428 3,902,052 OPERATING EXPENSES Cost of utilities sold 2,411,019 2,256,092 Operating, maintenance and administrative salaries 377,690 343,879 Operation and maintenance of plant and equipment 123,188 136,802 Depreciation 238,075 212,967 Audit and accounting services 13,675 11,010 Bad debts 8,154 18,221 Christmas bonuses 5,350 1,650 Bond issue expense 1,067 811 Computer services 14,879 14,111 Dues and memberships 11,464 12,820 Electric energy furnished City of Fairhope 19,047 17,788 Engineering services 21,950 19,624 Insurance 80,343 83,627 Legal fees 224 - Miscellaneous 1,904 45,781 Office supplies and postage 13,820 11,257 Payroll taxes 27,030 23,252 Professional services 659 - Employees retirement contribution 17,600 17,166 Telephone 13,573 6,421 Rental 8,175 2,517 Surveyor 725 300 Travel, training and school 4,127 2,907 Uniforms 1,163 1,648 Plant removal cost - 6,114 Trustee fees 22485 12634 U. S. Environmental Pollution Agency - 13,600 Late charges - 22573 Distribution of joint revenue 4,177 2,149 Utilities 1,627 1,484 Total operating expenses 3,4232190 3,215,205 EARNINGS FROM OPERATIONS (carried forward) $ 711,238 $ 686,847 PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS. P.C. 3 EARNINGS FROM OPERATIONS (brought forward) OTHER DEDUCTIONS (INCOME) Interest expense Interest earned Earnings transferred to the General Fund of the City of Fairhope Extraordinary losses: Flood damage repair cost Federal assistance for flood damage Hurricane damage direct repair cost Federal assistance for hurricane damage Total other deductions NET EARNINGS RETAINED EARNINGS AT BEGINNING OF YEAR RETAINED EARNINGS AT END OF YEAR See notes to financial statements. 1979 1978 $ 711,238 $ 686,847 113,906 101,125 (36,430) (29,909) 390,000 300,833 54,857 59,902 (44,045) (47,924) 133,339 - (138,768) - 472,859 384,027 238,379 302,820 22608,339 2,305,519 $2,846,718 $2,608,339 PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS. P.C. THE UTILITY FUNDS OF THE CITY OF FAIRHOPE, ALABAMA CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION FOR THE YEARS ENDED SEPTEMBER 30, 1979 AND 1978 WORKING CAPITAL WAS PROVIDED BY From operations: Net earnings Add non cash charges to earnings depreciation and amortization Total provided by operations Decrease in non current liabilities Contributions and grants in aid of construction Energy cost refunds for prior years Total working capital provided WORKING CAPITAL WAS USED FOR Additions to property, plant and equipment Increase in sinking funds Increase in deferred expenses Total working capital used INCREASE IN WORKING CAPITAL WORKING CAPITAL CHANGES - INCREASE (DECREASE) Current assets: Cash Receivables Inventories Prepaid expenses Current liabilities: Accounts and accrued expenses General obligation note payable Customer deposits Revenue bonds and general obligation warrants payable INCREASE IN WORKING CAPITAL 1979 $ 238,379 246,465 1978 $ 302,820 214,611 484,844 517,431 104,424 (47,068) 256,739 57,746 - 17,999 846,007 546,108 585,994 508,213 5,545 (24,906) 4,148 38,948 5952687 522,255 $ 250,320 $ 23,853 (43,495) 307,356 200,040 11,153 77,980 (25,070) 274 2,267 234,799 295,706 995,209 763,718 (151,250) 151,250 29,520 41,885 7,000 2,000 (15,521) 271,853 $ 250,320 $ 23,853 See notes to financial statements. PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS. P.C. CITY OF FAIRHOPE, ALABAMA ELECTRIC FUND STATEMENT OF FINANCIAL POSITION SEPTEMBER 301 1979 AND 1978 ASSETS 1979 1978 CURRENT ASSETS Cash in First National Bank of Baldwin County: Operating account $ 234,597 $ 337,389 Passbook savings accounts 67,165 55,470 Certificate of deposit 146,389 125,000 Sinking fund general obligation electric warrants 1231252 18,782 460,403 5362641 Receivables: Utility customers 279,190 230,205 Federal Disaster Assistance Administration 12,835 23,800 Federal Emergency Management Agency 129,042 - Accrued interest 3,088 - Miscellaneous 2,484 11,013 Allowance for uncollectible accounts (12,630) (39,908) 414,009 225,110 Materials inventories 143,352 78,892 Prepaid operating expenses 7,700 6,575 Total current assets 1,025,464 847,218 PROPERTY, PLANT AND EQUIPMENT (at cost) Electric plant and distribution system 2,162,520 2,030,683 Vehicles and equipment 1133073 1102505 2,275,593 2,141,188 Accumulated depreciation (706,035) (634,984) Total property, plant and equipment - net 1,569,558 1,506,204 OTHER ASSETS Unamortized debt issue cost 13,250 131435 Accounts receivable, City of Fairhope, Water and Wastewater fund 13,195 73,496 Total other assets 14,445 74,931 TOTAL ASSETS $2,609,467 $2,428,353 PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS. P.0 5 LIABILITIES AND CAPITALIZATION CURRENT LIABILITIES Accounts payable, trade Accrued expenses and taxes: Payroll taxes Utility taxes Employees' retirement contribution Interest Salaries Insurance withholding Customer deposits General obligation electric warrants Total current liabilities NON CURRENT LIABILITIES General obligation electric warrants Accounts payable, City of Fairhope: General fund Natural gas fund Total non current liabilities Total liabilities CAPITALIZATION Contributions in aid of construction Retained earnings Total capitalization TOTAL LIABILITIES AND CAPITALIZATION See notes to financial statements. 1979 1978 $ 298,840 5,687 13,827 2,605 4,576 9,991 145 36.831 188.531 W f 554,202 322,000 115,677 90,629 528,306 1,082,508 47,823 1,479,136 1,526,959 $2 60 67 $ 200,481 5,298 12,716 12,787 4,940 35,741 157,436 28,000 421,658 352,000 168,041 96,064 616,105 1,037,763 34,826 1,355,764 1,390,590 $2,428,353 PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS. P.C. CITY OF FAIRHOPE, ALABAMA ELECTRIC FUND STATEMENT OF OPERATIONS FOR THE YEARS ENDED SEPTEMBER 3010 1979 AND 1978 1979 1978 OPERATING REVENUE Sales of electric energy 2,212,570 23,093,978 Other charges, sales and receipts 27,802 3211215 Total operating revenues $2,240,372 $2,126,193 OPERATING EXPENSES Purchased power 1,516,452 1,303,650 Operating, maintenance and administrative salaries 157,377 138,141 Audit fees 2,600 3,450 Accounting 'services 2,200 220 Bad debts 8,154 16,086 Bond issue expense 185 185 Christmas bonuses 5,350 700 Computer services 5,706 5,299 Depreciation 71,051 67,822 Electric energy furnished other divisions of the City 19,047 17,788 Dues'and memberships 7,934 8,190 Engineering services 9,989 7,023 Gasoline and oil 7,368 5,099 Insurance - casualty 21,394 16,589 Insurance - employees' group 1011092 8,933 Legal fees 76 - Plant maintenance and operating supplies 11,524 31,099 Maintenance vehicles and equipment 14,667 2,132 Miscellaneous 593 1,807 Office supplies and postage 6,989 6,727 Payroll taxes 11,482 9,809 Professional services 120 - Employees' retirement contribution 8,400 8,400 Rental 8,175 2,517 Telephone 3,503 2,206 Travel, training and school 1,723 1,112 Uniforms 448 - Late charges - 2,573 Total operating expenses 1,912,599 11667,557 EARNINGS FROM OPERATIONS (carried forward) $ 327,773 $ 458,636 PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS. P.C. R EARNINGS FROM OPERATIONS (brought forward) OTHER DEDUCTIONS (INCOME) Interest expense Interest earned Earnings transferred to the General Fund of the City of Fairhope Extraordinary losses: Flood damage repair cost Federal assistance for flood damage Hurricane damage direct repair costs Federal assistance for hurricane damage Total other deductions NET EARNINGS See notes to financial statements, 1979 1978 $ 327,773 $ 458,636 19,398 20,784 (17,226) (11,674) 205,000 160,000 15,844 29,747 (12,835) (23,800) 123,261 (129,042) 204,400 175,057 $ 123,373 $ 283,579 -ARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS. P.C. C CITY OF FAIRHOPE, ALABAMA NATURAL GAS FUND STATEMENT OF FINANCIAL POSITION SEPTEMBER 30, 1979 AND 1978 ASSETS 1979 1978 CURRENT ASSETS Cash in First National Bank of Baldwin County, operating accounts $ 76,323 $ 68,968 Cash in Merchants National Bank of Mobile, bond sinking fund 41,050 41,631 ,117,373 110,599 Receivables Bulk gas customer 4,596 3,806 Federal Disaster Assistance Administration 5,091 - Federal Emergency Management Agency 8,547 - Miscellaneous 3,161 6,966 Allowance for doubtful accounts (870) (1,000) 20,525 9,772 Materials inventories 41,616 28,704 Prepaid operating expenses 9,552 9,791 Total current assets 1892066 158,866 SINKING FUNDS Merchants National Bank of Mobile, first mortgage revenue bonds, 1961 series, reserve and replacement funds 155,068 144,966 PROPERTY, PLANT AND EQUIPMENT (at cost) Natural gas plant and distribution system 1,407,369 131380,370 Vehicles and equipment. 115,081 111,906 1,522,450 1,492,276 Accumulated depreciation (775,282) (733,136) Total property, plant and equipment - net 747,168 759,140 OTHER ASSETS Accounts receivable, City of Fairhope; Electric Fund 90,629 96,064 Waste and wastewater fund 46,444 47,064 Total other assets 137,073 143,128 TOTAL ASSETS $1,228,375 $1,206,100 PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS. P.0 6l LIABILITIES AND CAPITALIZATION CURRENT LIABILITIES Accounts payable, trade Accrued expenses and taxes: Payroll taxes Employees retirement contribution Interest Insurance withholding First mortgage revenue bonds, 1961 series Total current liabilities NON CURRENT LIABILITIES First mortgage revenue bonds, 1961 series Accounts payable, City of Fairhope, General fund Total non current liabilities Total liabilities CAPITALIZATION Contributions in aid of construction Retained earnings Total capitalization TOTAL LIABILITIES AND CAPITALIZATION See notes to financial statements. 1979 $ 48,158 3,527 4,208 7,717 54 15,506 40,000 103,664 540,000 23,860 563,860 667,524 57,572 503,279 560,851 1978 $ 32,596 2,901 7,263 8,232 18,396 40,000 90,992 5802000 75,866 655,866 746,858 43,389 415,853 459,242 $1,228,375 $1,206�100 PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS. P.C. CITY OF FAIRHOPE, ALABAMA NATURAL GAS FUND STATEMENT OF OPERATIONS FOR THE YEARS ENDED SEPTEMBER 30, 1979 AND 1978 1979 1978 OPERATING REVENUES Sales of natural gas $1,375,084 $1,338,041 Miscellaneous sales and receipts 9,786 2,488 Total operating revenues 1,384,870 1,340,529 OPERATING EXPENSES Natural gas purchases 840,047 902,209 Operating, maintenance and administrative salaries 103,117 96,786 Audit fees 23,600 3,450 Accounting services 1,650 220 Bad debts - 837 Christmas bonuses - 400 Computer services 4,321 4,478 Depreciation 555,193 45,898 Dues and memberships 3,504 3,989 Engineering services 8,374 12,207 Gasoline and oil 610594 5,642 Insurance - casualty 17,290 28,539 Insurance - employees' group 5,619 5,999 Legal fees 148 - Plant maintenance and operating supplies 13,618 16,351 Maintenance vehicles and equipment 4,796 2,650 Miscellaneous r 737 1,476 Office supplies and postage 3,909 2,530 Payroll taxes 7,278 62337 Employees' retirement contribution 4,600 4,383 Surveyor 150 150 Telephone 5,870 1,742 Utilities 1,627 1,484 Travel,training and school 1,703 1,345 Trustee fees 620 660 Uniforms 324 532 Distribution of joint revenue 4,177 21149 Total operating expenses 1,097,866 1,152,443 EARNINGS FROM OPERATIONS (carried forward) $ 287,004 $ 188,086 PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS, P.0 E:3 EARNINGS FROM OPERATIONS (brought forward) OTHER DEDUCTIONS (INCOME) Interest expense Interest earned Earnings transferred to the General Fund of the City of Fairhope Extraordinary losses: Flood damage repair cost Federal assistance for flood damage Hurricane damage, repair cost and loss natural gas Federal assistance for hurricane damage Total other deductions NET EARNINGS See notes to financial statements. 1979 1978 $ 287,004 $ 188,086 23,409 24,958 (10,102) (9,783) 185,000 140,833 6,364 - (5,091) - 8,547 (8,547) - 199,580 1565,008 $ 87,424 $ 32,078 PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS. P.C. CITY OF FAIRHOPE, ALABAMA WATER AND WASTEWATER FUND STATEMENT OF FINANCIAL POSITION SEPTEMBER 30, 1979 AND 1978 ASSETS 1979 1978 CURRENT ASSETS Cash in First National Bank of Baldwin County: Operating account $ 78,444 $ 63,424 Passbook savings accounts 1,629 1,549 Construction accounts 19,975 21,550 Bond sinking fund 18,216 16,705 Cash in Merchants National Bank of Mobile, bond sinking funds 45,053 34,120 163,317 137,348 Receivables: Federal Disaster Assistance Administration 26,119 24,124 Federal Emergency Management Agency 1,179 - Miscellaneous 10,552 102661 West Baldwin Water Authority - 5,801 Deposits on equipment 2,700 - Allowance for doubtful accounts (1,076) (1,500) 39,474 39,086 Materials inventories 323,475 31,867 Prepaid operating expenses 5,884 62496 Total current assets 241,150 214,797 S INKING 1TNDS Merchants National Bank of Mobile Reserve and replacement funds 1012943 106,500 PROPERTY, PLANT AND EQUIPMENT (at cost) Water and wastewater systems 4,370,954 3,969,780 Vehicles and equipment 46,929 42,560 4,417,883 4,012,340 Accumulated depreciation (1,010,688) (901,682) Total property, plant and equipment - net 3,407,195 3,110,658 OTHER ASSETS Unamortized debt cost 15,037 12,603 Unamortized deferred plant maintenance 31,945 38,436 Total other assets 46,982 51)039 TOTAL ASSETS $3,797,270 $3,482,994 PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS. P.C. G] LIABILITIES AND CAPITALIZATION 'CURRENT LIABILITIES Accounts payable, trade Accrued expenses and taxes: Payroll taxes Employees' retirement contribution Interest Insurance and employee withholding General obligation note payable, First National Bank of Baldwin County Customers' deposits First mortgage revenue bonds.payable Total current liabilities NON CURRENT LIABILITIES First mortgage revenue bonds payable Accounts payable, City of Fairhope: General fund Electric fund Natural gas fund Total non current liabilities Total liabilities CAPITALIZATION Contributions and grants in aid of construction Retained earnings Total capitalization 1979 $ 8,771 4,131 2,14.8 23,047 562 29,888 19,975 62,000 1202634 1,285,000 59,555 13,195 46,444 119.194 1.404.194 1,524,828 1,408,1'38 864,304 2,272,442 TOTAL LIABILITIES AND CAPITALIZATION $j See notes to financial statements. PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS. P.C. 1978 . $ 23,94 3,372 7,740 16,511 27,623 151,250 21,550 57,000 281,371 987,000 78,761 73,496 47,064 199,321 1,186,321 1,467,692 1,178,580 836,722 2,015,302 CITY OF FAIRHOPE, ALABAMA WATER AND WASTEWATER FUND. STATEMENT OF OPERATIONS FOR THE YEARS ENDED SEPTEMBER 30, 1979 AND 1978 1979 1978 OPERATING REVENUES $ 364,612 $ 293,316 Sales of water Wastewater charges 125,404 120,335 Other charges, sales and receipts 19,170 21,679 Total operating revenues 509,186 435,330 OPERATING EXPENSES 54,520 50,233 Electric power Operating, maintenance and 117,196 108,952 administrative salaries Audit fees 21P600 3,450 Accounting services 22025 220 Bad debts - 1,298 Bond issue expense 882 626 550 Christmas bonuses 4,852 4,334 Computer services 111,831 99,247 Depreciation 26 641 Dues and memberships 3,587 394 Engineering services 4,819 3,550 Gasoline and oil 17,765 16,587 Insurance - casualty Insurance - employees' group 8,183 6,980 Plant maintenance and operating supplies 52,732 67,718 Maintenance vehicles and equipment 7,070 2,561 Miscellaneous 574 1,498 Office supplies and postage 2,922 22000 Payroll taxes 8,270 7_106 Professional services Employees' retirement contribution 539 _ 4,600 4,383 Telephone 4,200 2,473 Travel, training and school 701 391 450 1,116 Uniforms - 62114 Plant removal cost 575 150 Surveyor 1,865 974 Trustee fees - 12600 U. S. Environmental Pollution Agency Total operating expenses 412,725 395,205 EARNINGS FROM OPERATIONS (carried forward) $ 96,461 $ 402125 PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS. P.C. W EARNINGS FROM OPERATIONS (brought forward) OTHER DEDUCTIONS (INCOME) Interest expense Interest earned Extraordinary losses: Flood damage repair cost Federal assistance for flood damage Hurricane damage direct repair cost Federal assistance for hurricane damage Total other deductions NET EARNINGS (LOSS) See notes to financial statements. - 1979 1978 $ 96,461 $ 40,125 71,099 55,383 (9,102) (8,452) 323-649 30,155 (262119) (24,124) 1,531 (1,179) 68,879 52,962 $ 27,582 $ (12,837) -ARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 11 THE UTILITY FUNDS OF THE CITY OF FAIRHOPE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS . SEPTEMBER 30, 1979 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounts of the Utility Funds are maintained and the accompanying financial statements have been prepared on the accrual basis of accounting. Property, plant and equipment - Additions, improvements and renewals are capitalized at cost. Maintenance and repairs are charged to expense, as incurred. Depreciation is provided using the straight-line method over the estimated useful lives of the assets. Retired plant and equipment are removed from the accounts at their respective costs. Receivables from utility customers - The electric fund purchases, at face value, the utility receivables of the natural gas fund and the water and wastewater fund. Purchase is made at the time customers are billed. Inventories - Materials and supplies inventories are valued at cost and consist largely of items to be used to construct and maintain utility plant. Debt expense and discount - Issuance and discount expenses on long term debt are deferred and amortized, on the bonds outstanding method, over the terms of the related issues. Contributions in aid of construction - Non refundable payments from customers and governmental agencies for the purpose of construction of utility plant, to which the City retains title, are capitalized, with no effect on revenues. Deferred charges - Expenditures for operation and maintenance which will benefit future periods are amortized over the periods benefited. Retirement plan - The City has a funded contributory retirement plan available to substantially all employees after specified periods of service and attainment of minimum age requirements. Annual contributions to the plan for current and past service costs are based on acturial estimates of the plan trustee, New England Mutual Life Insurance Company. Contributions to the plan are accrued and expensed during the year in which the liability is incurred, Past service costs are being amortized over a 30 year period. PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS P.C. 12 NOTE 2 SINKING FUNDS The amounts in the various sinking funds was as follows at September 30: 1979 1978 1950 series $ 14,061 $ 37,805 1953 series 30,191 28,323 1961 series 254,225 186,597 1972 series 37,247 74,492 1973 series 18,216 16211705 1978 series 7,390 -0- General obligation warrants 12,252 18,782 Total S 373,582 S 362,704 NOTE 3 REVENUE BONDS AND WARRANTS PAYABLE Electric Fund (a) General obligation electric warrants dated August 22, 1973, interest rate 5.2% payable semi annually, remaining principal payable July 1, 1980 through July 1, 1988 Current Non current Natural Gas Fund (a) First mortgage gas, water and waste- water revenue bonds, 1961 series, dated December 1, 1961, interest rate 3 7/8% on 40,000 and 47. on 540,000, payable semi annually, remaining principal payable December 1, 1979 through December 1, 1991 Current Non current (continued) September 30, 1979 1978 30,000 28,000 322,000 352,000 352,000 380,000 402000 40,000 540,000 580,000 580,000 620,000 PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS. P.C. 13 NOTE 3 REVENUE BONDS AND WARRANTS PAYABLE (continued) Water and Wastewater Fund (a) First mortgage water and waste- water revenue bonds, 1950 series, dated July 1, 1950, interest rate 3 1/2% payable semi annually, remaining principal payable July 1, 1980 Current Non current (b) First mortgage water and wastewater revenue bonds, 1953 series, dated December 14, 1953, interest rate 4 3/4% payable semi annually, re- maining principal payable January 1, 1981 through 1984 Current Non current (c) First mortgage water and wastewater revenue bonds, 1972 series, dated December 1, 1972, interest rate 4 1/2 to 5%, on 300,000 and 5 to 5.3% on 440,000, payable semi annually, remining principal payable December 1, 1979 through December 1, 1994 Current Non current (d) Special obligation wastewater revenue bonds, Alabama Pollution Control Finance Authority, 1973 series, dated January 1, 1973, interest rate 5.5% on 60,000 and 5.9% on 140,000, payable semi annually, remaining principal payable January 1, 1980 through January 1, 1989 Current Non current September 30, 1979 1978 12,000 -0- -0- 35,000 35,000 30,000 710,000 740,000 20,000 1801000 200,000 12,000 12,000 -0- 35,000 35,000 25,000 740,000 765,000 20,000 200,000 220,000 (continued) PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS. P.C. 14 NOTE 3 REVENUE BONDS AND WARRANTS PAYABLE (continued) (e) Water, gas and wastewater revenue bonds, series 1978 dated December 1, 1978, interest rate 6% on 75,000 and 6.2% on 285,000, payable semi annually, principal payable December 1, 1987 through December 1, 1994 Current Non current TOTAL BONDS AND WARRANTS PAYABLE NOTE 4 EXTRAORDINARY LOSSES September 30, 1979 1978 -0- 360,000 3602000 $2,279,000 -0- - 0- -0- $2,044,000 Flood disaster - On July 26, 1978 the City experienced a severe and damaging rainfall. Flooding caused extensive damage to City streets and utility systems. City estimates as to the cost of utility systems repairs total approximately $130,000. Eighty per cent of qualifying expenditures for repairs will be reimbursed by Federal disaster assistance. Approved assistance commitments reflect that most of the City's utility repairs will qualify for reimbursement. All repair costs are being recorded in the period incurred and assistance reimbursement accrued at 80 per cent of those costs considered to be qualified expenditures. Hurricane disaster - On September 12 and 13, 1979 the City sustained considerable damage to its utility systems, buildings and recreational facilities when Hurricane Frederic struck the area. The Federal Emergency Management Agency is to reimburse the City for all un- insured costs related to restoring the City's utility systems, buildings, etc. to their pre hurricane condition. All repair costs are being recorded in the period incurred and assistance reimbursement accrued in the amounts approved based on assistance commitments. FEMA is reimbursing the City for direct costs and some overhead expenses. PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS P.C. 15 J NOTE 5 ELECTRIC ENERGY FURNISHED OTHER DIVISIONS The selling price of electric energy delivered without charge by the Electric Fund to various other funds (except the Water and Waste Water Fund), boards and offices of the City of Fairhope is charged to the Electric Fund.'s operations as electric energy furnished other divisions of the City of Fairhope. The Water and Wastewater Fund purchases at cost from the Electric Fund, electric energy it receives. NOTE 6 DEPRECIATION The rates used in recording depreciation of plant and equipment of the utility funds are annual straight line rates as follows: Electric system 3.Mo Natural gas system 2.5% Water and wastewater' system 2.5% Vehicles and equipment 12.5% to 16.7% NOTE 7 FINANCIAL STATEMENTS NOT INCLUDED The financial statements in this report are those of the City of Fairhope's Utility Funds only and do not include the assets and liabilities or revenues and expenditures of the General Government or the Recreation Fund _ of the City of Fairhope. NOTE 8 LITIGATION Inquiry as to the Utility Fund's involvement in litigation was made to the City's legal counsel. The response to this inquiry indicated there was no material litigation involving the Utility Funds as of the date of this report. PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS. P.C. 16 NOTE 9 INSURANCE COVERAGE The insurance coverage of the City applicable to the Utility Funds is approximately as follows: Electric facilities: Electrical sub stations $ 418,000 Natural gas facilities: Pump houses, odorizing equipment, regulating stations and equipment $ 14,000 Water and wastewater facilities: Water tanks, lift stations and contents, filter plant building and equipment, pressure filter, pump houses, sewer plant and equipment $ 400,000 Comprehensive general liability $ 500,000 Vehicle bodily injury and property damage liability $ 250,000 Crime and employee dishonesty $ 25,000 NOTE 10 CURRENT YEAR ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT Balance October'l, 1978 Additions: Self constructed: Labor Material Contracted construction Vehicles and equipment purchases Electrical lines.purchased West Baldwin water system purchased Water and wastewater system con- structed under street program Equipment retired Natural Water and Electric Gas Wastewater Fund Fund Fund $2,141,188 $1,492,276 $4,012,340 18,460 9,860 14,469 103,416 17,140 55,963 33,673 3,321 16,221 7,194 9,208 106,953 190,116 (13,047) (2,825) BALANCE SEPTEMBER 30, 1979 $21275,593 $1,522,450 $A,417,883 PARKER AND WHITE, CERTIFIED PUBIC ACCOUNTANTS. P.C. 17 NOTE 11 INFORMATION REQUIRED BY BONA INDENTURES Electric Fund A. The following information provided by City employees: Natural Water and Gas Wastewater Fund Fund Number of customers 3,308 4,045 3,631 Number of metered customers 3,308 4,045 3,629' Number of unmetered customers -0- -0- 2 Number of wastewater connections 2,587 B. All requirements of the respective bond indentures appeared to have compiled with by the City. NOTE 12 SALARIES The following is a summary of employees' salaries by Utility Fund for the years ended September 30, 1979 and 1978: Electric Fund Year ended September 30, 1979: Total salaries $ 197,787 Less: Salaries capitalized for plant additions (18,460) Salaries charged to hurricane expense (21,95 0) Amount of salaries charged to operations $ 157,377 Year ended September 30, 1978: Total salaries $ 164,127 Less: Salaries capitalized for plant additions (25,986) Amount of salaries charged to operations $ 138,141 Natural Gas Fund $ 113,421 (9,860) (444 ) $ 103,117 $ 104,087 (7,301) $ 96,786 Water and Wastewater - - $ 132,636 (14,469) (971) $ 117,196 $ 114,498 (5,546) $ 108,952 PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS. P.C. THE RECREATION FUND OF THE CITY OF FAIRHOPE, ALABAMA AUDIT REPORT SEPTEMBER 30, 1979 PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS. P.C. THE RECREATION FUND OF THE CITY OF FAIRHOPE, ALABAMA M AUDIT REPORT SEPTEMBER 30, 1979 CONTENTS Page Accountants' opinion, 1 Financial statements: Consolidated statements: Statement of financial position 2 Statement of changes in fund balance 3 Statement of revenue and expenditures 4 Recreation Operating Fund: Statement of financial position 5 Statement of changes in fund balance 6 Statement of revenue and expenditures 7 Recreation Capital Improvement Fund: Statement of financial position 8 Statement of changes in fund balance 9 Statement of revenue and expenditures 10 Notes to the financial statements 11 PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS. P.0 1 SAMUEL F. PARKER DEWEY E. WHITE LESLIE T. FICKLING H. ALLEN JORDAN XAVIER A. HARTMANN. III J. KENNETH HANAK PARKER A N D WHITE, P. C. CERTIFIED PUBLIC ACCOUNTANTS FOLEY. ALABAMA ACCOUNTANTS' OPINION December 5, 1979 Honorable James P. Nix, Mayor, and Members of the City Council City of Fairhope, Alabama MEMBER. AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS We have examined the consolidated and individual statements of financial position of the Recreation Fund of the City of Fairhope, Alabama as of September 30, 1979 and 1978 and the related consolidated statements of revenue and expenditures and changes in fund balance and the individual statements of revenue and expenditures and changes in fund balance 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 accompanying financial 'statements referred to above present fairly the financial position of the Recreation Fund of the City of Fairhope, Alabama at September 30, 1979 and 1978 and the results of its operations for the years then ended, in conformity with generally accepted accounting principles applicable to governmental entities, on a basis consistently applied. Certified Public Accountants PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS. P.C. 2 THE RECREATION FUND OF THE CITY OF FAIRHOPE, ALABAMA CONSOLIDATED STATEMENT OF FINANCIAL POSITION SEPTEMBER 30, 1979 AND 1978 ASSETS Cash: On hand In First National Bank of Baldwin County: Recreation Operating Fund Recreation Capital Improvement Fund Total cash Accounts receivable - miscellaneous Receivable - Fairhope High School Cigarette stamp inventory TOTAL ASSETS LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable, trade Payroll taxes payable Due to City of Fairhope - General•Fund TOTAL LIABILITIES FUND BALANCE TOTAL LIABILITIES AND FUND BALANCE See notes to the financial statements. PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS P C. 1979 1978 $ 50 $ 75 16,274 1,032 43,494 61,150 59,818 62,257 491 794 2,449 2,449 1,277 399 $ 64,035 $ 65,899 $ 8,484 $ 682 579 836 1,224 813 10,287 2,331 53,748 63,568 $ 64,035 $ 65,899 3 THE RECREATION FUND OF THE CITY OF FAIRHOPE, ALABAMA CONSOLIDATED STATEMENT OF CHANGES IN FUND BALANCE FOR THE YEARS ENDED SEPTEMBER 30, 1979 AND 1978 FUND BALANCE, AT BEGINNING OF YEAR Add: Excess of revenue over expenditures Less: Excess of expenditures over revenue FUND BALANCE, AT END OF YEAR See notes to the financial statements. PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS. P C. 1979 $ 63,568 (9,820) $ 53.748 1978 $ . 56,210 7,358 $ 63.568 4 THE RECREATION FUND OF THE CITY OF FAIRHOPE, ALABAMA CONSOLIDATED STATEMENT OF REVENUE AND EXPENDITURES FOR THE YEARS ENDED SEPTEMBER 30, 1979 AND 1978 REVENUE Cigarette tax Beer tax Swimming pool admissions, swimming lessons and concessions Little League registration fees and sponsors Reserved seat sales Parking Interest Miscellaneous Transfer from General Fund Grant, State of Alabama Donated salaries - other Funds of City Donated services Total revenue EXPENDITURES Salaries Payroll taxes Athletic uniforms and equipment Repairs and maintenance Supplies Utilities and telephone Cost of cigarette stamps sold Gasoline and oil Audit Accounting services Adult and tourist recreation program Tennis director Umpires Young Street art program Young Street assistants Debt service, principal Debt service, interest Capital expenditures Directors and assistant expenses Colony rent Rental Professional services Football parking attendants Stimpson Field project All other expenditures Total expenditures EXCESS OF REVENUE OVER EXPENDITURES EXCESS OF EXPENDITURES OVER REVENUE See notes to the financial statements. PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS P C. 1979 $ 35,716 43,943 2,060 1,652 1,920 411 3,000 31,960 9,002 10,251 139,915 10,933 693 947 8,455 3,784 2,098 1,607 436 500 550 3,255 825 300 225 15,000 15,400 1,538 2,236 510 494 79,312 623 149,735 $ (9,820) 1978 $ 36,001 42,297 4,306 1,050 2,069 2,344 2,554 1,774 92,395 23,752 1,596 4,349 4,393 5,072 1,755 1,532 150 900 2,700 975 102 302 15,000 -16,200 449 361 1,926 513 735 480 766 914 85,037 $ 7,358 5 THE RECREATION FUND OF THE CITY OF FAIRHOPE, ALABAMA RECREATION OPERATING FUND STATEMENT OF FINANCIAL POSITION SEPTEMBER 30, 1979 AND 1978 ASSETS 1979 1978 Cash: On hand $ 50 $ 75 In First National Bank of Baldwin County 16,274 1,032 Accounts receivable . 491 794 Cigarette stamp inventory 1,277 399 TOTAL ASSETS $ 18,092 $ 2,300 LIABILITIES.AND FUND BALANCE LIABILITIES Accounts payable, trade $ 2,539 $ 682 Payroll taxes payable 579 836 Due to City of Fairhope - General Fund 1,224 813 Due to Recreation Capital Improvement Fund - 2,450 TOTAL LIABILITIES 4,342 4,781 FUND BALANCE (DEFICIT) 13,750 (2,481) TOTAL LIABILITIES AND FUND BALANCE $ 18,092 $ 2,300 0 See notes to the financial statements. PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS P C. 6 THE RECREATION FUND OF THE CITY OF FAIRHOPE, ALABAMA RECREATION OPERATING FUND STATEMENT OF CHANGES IN FUND BALANCE FOR THE YEARS ENDED SEPTEMBER 30, 1979 AND 1978 FUND BALANCE (DEFICIT), AT BEGINNING OF YEAR Add: Excess of revenue over expenditures FUND BALANCE (DEFICIT), AT END OF YEAR See notes to the financial statements. PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS. P.C. 1979 $ (2,481) 16,231 1978 $ (5,256) 2,775 $ 13.750 $ 2 481) THE RECREATION FUND OF THE CITY OF FAIRHOPE, ALABAMA RECREATION OPERATING FUND STATEMENT OF REVENUE AND EXPENDITURES FOR THE YEARS ENDED SEPTEMBER 30, 1979 AND 1978 REVENUE Cigarette tax Beer tax Swimming pool admissions, swimming lessons and concessions Little League registration fees and sponsors Parking at football stadium Miscellaneous Transfer from General Fund Total revenue EXPENDITURES Salaries Payroll taxes Athletic uniforms and equipment Repairs and maintenance Supplies Utilities and telephone Cost of cigarette stamps sold Gasoline and oil .Audit Accounting services Adult and tourist recreation program Tennis director Umpires Young Street art program Young Street assistants Colony rent Directors and assistant expenses Rental Football parking attendants Capital purchases Trophies Miscellaneous Insurance Civic center Total expenditures EXCESS OF REVENUE OVER EXPENDITURES 1979, 1978 $ 22,486 $ 22,501 26,366 25,565 2,060 4,306 - 1,050 831 100 11 1,474 3,000 - 54;754 54,996 10,933 23,752 693 1,596 947 4,349 8,455 4,393 3,784 5,072 2,098 1,755 1,607 1,532 436 150 500 900 550 - 3,255 2,700 825 975 - 102 300 302 225 - 2,236 1,926 - 361 510 513 494 480 - 449 - 601 282 313 341 - 52 See notes to the financial statements. PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS P C. 38,523 52,221 $ 16,231 $ 2,775 8 THE RECREATION FUND OF THE CITY OF FAIRHOPE, ALABAMA RECREATION CAPITAL IMPROVEMENT FUND STATEMENT OF FINANCIAL POSITION SEPTEMBER 30, 1979 AND 1978 ASSETS Cash in First National Bank of Baldwin County: Recreation Project Improvement - checking Recreation Project Improvement = savings Sinking Fund, general obligation recreational warrants Total cash Receivable - Recreation Operating Fund Receivable - Fairhope High School TOTAL ASSETS LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable, trade 100 11 : 160041�I TOTAL LIABILITIES AND FUND BALANCE See notes to the financial statements. PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS P C. 1979 1978 $ 26,367 $ 10,930 11,532 44,989 5,595 5,231 43,494 61,150 - 2,450 2,449 25,449 $ 45,943 $ 66,049 5,945 - 39,998 66,049 $ 45,943 $ 66,049 9 THE RECREATION FUND OF THE CITY OF FAIRHOPE, ALABAMA RECREATION CAPITAL IMPROVEMENT FUND STATEMENT OF CHANGES IN FUND BALANCE FOR THE YEARS ENDED SEPTEMBER 30, 1979 AND 1978 FUND BALANCE, AT BEGINNING OF YEAR Add: Excess of revenue over expenditures Less: Excess of expenditures over revenue FUND BALANCE, AT END OF YEAR See notes to the financial statements. PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS P C. 1979 1978 $ 66,049 $ 61,466 4,583 (26,051) $ 39,998 $ 66,049 t. 10 THE RECREATION FUND OF THE CITY OF FAIRHOPE, ALABAMA RECREATION CAPITAL IMPROVEMENT FUND STATEMENT OF REVENUE AND EXPENDITURES FOR THE YEARS ENDED SEPTEMBER 30, 1979 AND 1978 1979 1978 REVENUE Cigarette tax $ 13,230 $ 13,500 Beer tax 17,577 16,732 Reserved seat sales - 2,069 Parking at football stadium 821 2,244 Interest earned 1,920 2,554 Rental stadium 400 300 Grant, State of Alabama 31,960 - Donated salaries, other Funds of City 9,002 - Donated services 10,251 - Total revenue 85,161 37,399 EXPENDITURES Debt service, principal 15,000 15,000 Debt service, interest 15,400 16,200 Professional services - 735 Stimpson Field project 79,312 766 Miscellaneous 14 115 Improvements - Civic center 1,486 - Total expenditures 111,212 32,816 EXCESS OF REVENUE OVER EXPENDITURES $ 4,583 EXCESS OF EXPENDITURES OVER REVENUE $ 26 051) See notes to the financial statements. PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS P C. THE RECREATION FUND OF THE CITY OF FAIRHOPE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1979 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies followed in the preparation of these financial statements: A. Basis of Accounting The accounts of the Recreation Fund are maintained and the accompanying financial statements have been prepared on a modified accrual basis. Under the modified accrual basis, expenditures are recorded at the time liabilities are incurred and revenues are recorded when received in cash, except for certain revenues which are accrued when earned. B. Recording of fixed assets Recreational facilities and equipment are recorded on the books of the General Government's General Fixed Asset Account., C. Recording of long term debt General obligation recreational warrants are recorded on the books of the General Government's General Long Term Debt. NOTE 2 RECREATION CAPITAL IMPROVEMENT FUND The Recreation Capital Improvement Fund was established by the City Council and Recreation Board for the purpose of receiving and disbursing funds . for the purpose of funding costs of providing public parks and recreational areas in the City and refunding of general obligation recreational warrants, a debt of the City, incurred for payment of a portion of said costs. NOTE 3 FINANCIAL STATEMENTS NOT INCLUDED The financial statements in this report are those of Fairhope's Recreation Fund only and do not include the assets or revenues and expenditures of the General Government or the of the City of Fairhope. the City of and liabilities Utility Funds PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS P C. FAIRHOPE PUBLIC LIBRARY AUDIT REPORT SEPTEMBER 30, 1979 PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS P.C. FAIRHOPE PUBLIC LIBRARY SEPTEMBER 30, 1979 CONTENTS Accountants' opinion Financial statements: Statement of assets, liabilities and fund balance Statement of changes in fund balance Statement of cash receipts and cash disbursements Notes to the financial statements Page 1 2 3 4 5. PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS, P C. 1 PARKER AND WHITE, P.C. CERTIFIED PUBLIC ACCOUNTANTS FOLEY. ALABAMA SAMUEL F. PARKER DEWEY E. WHITE LESLIE T. FICKLINO H. ALLEN JORDAN XAVIER A. HARTMANN. I11 J. KENNETH HANAK ACCOUNTANTS' OPINION December 6, 1979 Fairhope Public Library Fairhope, Alabama MEMBER. AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS We have examined the statement of assets, liabilities and fund balances of the Fairhope Public Library as of September 30, 1979 and 1978 and the related statements of changes in fund balance and cash receipts and cash disbursements for the years then ended. Our examination was made in accordance with generally accepted auditing standards and accordingly include such tests of the accounting records and such other auditing procedures"as we considered necessary in the circumstances. The accompanying statements were prepared on the cash basis of accounting. In our opinion, the aforementioned statements present fairly the assets, liabilities and fund balance of the Fairhope Public Library at September 30, 1979 and 1978, arising from cash transactions and the revenues collected and expenditures made by it during the years then ended on a con- sistent basis. /P4&A& 410""W Certified Public Accountants PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS. P.C. 2 FAIRHOPE PUBLIC LIBRARY STATEMENT OF ASSETS, LIABILITIES AND FUND BALANCE SEPTEMBER 30, 1979 AND 1978 ASSETS CASH First National Bank of Baldwin County Baldwin County Savings and Loan Association: Savings account Equipment Replacement Fund Certificate of deposit Total cash RECEIVABLE City of Fairhope (Note 3) TOTAL ASSETS 1979 1978 $ 7,755.11 $ 6,935.90 4,833.48 5,170.77 942.30 377.86 20,000.00 -0- 33,530.89 12,484.53 2,865.01 -0- $ 36,395.90 $ 12,484.53 LIABILITIES AND FUND BALANCES LIABILITIES Employees' payroll taxes withheld $ 1,659.28 $ 565.64 FUND BALANCE 34,736.62 11,918.89 LIABILITIES AND FUND BALANCE $ 36,395.90 $ 12,484.53 0 ti See notes to the financial statements. PARKER AND WHITE. CERTIFIED PUBLIC ACCOUNTANTS. P C. 3 FAIRHOPE PUBLIC LIBRARY STATEMENT OF CHANGES IN FUND BALANCE FOR THE YEARS ENDED SEPTEMBER 30, 1979 AND 1978 FUND BALANCE, AT BEGINNING OF YEAR Add: Excess cash receipts over cash disbursements FUND BALANCE, AT END OF YEAR 1979 $ 11,918.89 $ 10,383.71 22,817.73 1,535.18 $ 34,736.62 $ 11,918.89 See notes to the financial statements. PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS P C. 4 FAIRHOPE PUBLIC LIBRARY STATEMENT OF CASH RECEIPTS AND CASH DISBURSEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 1979 AND 1978 RECEIPTS City of Fairhope Fines Lost books Gifts and memorials Friends of the Fairhope Library (Note 1) Estate of Ford Patterson (Note 2) Copier receipts Meeting room rent Memberships - out of City Interest income Miscellaneous income Book rentals Total receipts DISBURSEMENTS Salaries Payroll taxes Book purchases Periodicals Supplies Telephone Utilities Repairq and maintenance Janitorial service Audit Dues and registration Miscellaneous Travel expense Audio visual Accounting and legal fees Furniture and equipment: Desk 3M 500M :ficrofilm Reader/Printer Stand for Reader/Printer Various other items A. B. Dick copier Typewriter Gloss letter board Book rental contract Total disbursements EXCESS CASH RECEIPTS OVER DISBURSEMENTS "01MG, $ 58,100.04 2,050.77 57.02 1,243.38 10,508.16 20,000.00 2,503.31 410.00 1,116.50 302.15 358.55 -0- .96,649.88 36,897.21 2,108.72 13,806.44 1,856.57 3,708.18 791.93 3,012.91 591.07 1,200.00 300.00 208.00 325.83 1,146.33 1,762.95 1,222.80 233.75 4,398.16 205.00 56.30 -0- -0- -0- _n_ 73,832.15 I UR 51,359.04 2,035.41 105.52 1,483.50 -0- -0- 1,578.04 1,221.00 33.50 279.05 428.01 683.26 59,206.33 29,279.00 1,781.42 8,777.89 1,274.84 2,253.45 705.44 3,437.06 1,822.53 -0- 275.00 711.00 344.75 950.18 1,577.27 960.00 -0- -0- -0- 127.87 1,795.00 680.00 101.70 816.75 57,671.15 $ 22,817.73 $ 1,535.18 See notes to the financial statements. PARKER AND WHITE, CERTIFIED PUBLIC ACCOUNTANTS. P.C. 5 FAIRHOPE PUBLIC LIBRARY NOTES -TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1979 NOTE 1 RECEIPTS, 7RIENDS OF THE FAIRHOPE LIBRARY The Friends of the Fairhope Library made the following contributions to the Fairhope Public Library during the current period: On November 15, 1978 - $3,000.00 On April 11, 1979 - $7,508.16. This contribution is to be expended for purchases as follows: 3M 500M Microfilm Reader/Printer with stand and paper $ 4,608.16 Periodicals on microfilm 1,000.00 Microfilm cabinet 500.00 Materials for document preservation 450.00 A V equipment 200.00 Collection development literature 400.00 Summer reading program for children 100.00 Honorarium Fund for the children's program 250.00 TOTAL $ 7,508.16 NOTE 2 RECEIPTS, ESTATE OF FORD PATTERSON The estate of Ford Patterson donated $20,000 to the Fairhope Public Library in July of the current period. This money was invested in a six month, 92% interest, certificate of deposit at Baldwin County Savings and Loan Association. NOTE 3 RECEIVABLE, CITY OF FAIRHOPE The receivable from the City of Fairhope, represents the balance due for the monthly appropriation for September, 1979. PARKER AND WHITE. CERTIFIEO PUBLIC ACCOUNTANTS P C.