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HomeMy WebLinkAbout01-29-1981 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 29 January 1981 at 5:15 p.m., City Administration Building, 387 Fairhope Avenue, Fairhope, Alabama, for the purpose of reviewing the 1979-1980 Fiscal Year Audit Report. Cou cilmember Councilmember Counci member Counci member m--- . 1 1111 FAY" - - 61 ;� , qav� 4- (29 January 1981) 252 The City Council, City of Fairhope, met in special session at 5:15 p.m., City Administration Building, 387 Fairhope Avenue, Fairhope, Alabama 36532, on Thursday, 29 January 1981. The purpose of this meeting was to review the 1979-1980 Fiscal Year Audit Report. Present were Mayor James P. Nix; Councilmembers Roy C. White, Trisha Nelson, and C. 0. McCawley; City Clerk Evelyn Phillips and City Accountant Richard Dtrming. Representing the City's Auditing Firm, Parker, Fickling, and Jordan, P.C., was Mr. Ken Hanak and Mr. Tom Fickling. After reviewing and discussing the report, Councilman McCawley commended the Auditors for their work and moved the Report be accepted. Seconded by Councilwoman Nelson, motion passed unanitmusly. Meeting was adjourned. (4� J`W-�g- Qu�� City Cler CITY OF FAIRHOPE, ALABAMA FINANCIAL STATEMENTS SEPTEMBER 30, 1980 PARKER, FICKLING & JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. CITY OF FAIRHOPE, ALABAMA SEPTEMBER 30, 1980 TABLE OF CONTENTS Page Accountants' opinion 1 General Purpose Financial Statements - combined statements overview: Combined balance sheet - all fund types and account groups 3 - 4 Combining balance sheet - all special revenue funds 5 Combined statement of revenues, expenditures and changes in fund balnces - General, Special Revenue and Special Assessment Fund types 6 Combined statement of revenues, expenditures and changes in fund balances - budget and actual - General, Special Revenue and Special Asssessment Fund types 7 Combining balance sheet - All Proprietary Fund types 8 - 9 Combined statement of income and retained earnings all Proprietary Fund types 10 - 11 Combined statement of changes in financial position all Proprietary Fund types 12 - 13 Account Groups General Fixed Assets Statement of general fixed assets 14 Statement of changes in general fixed assets 15 General Long Term Debt Statement of general long term debt 16 Notes to the financial statements 17 - 29 (continued) PARKER, FICKLING & JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. CITY OF FAIRHOPE, ALABAMA SEPTEMBER 30, 1980 TABLE OF CONTENTS (continued) Page Supporting Schedules: Additional financial information Individual Fund and Account Group Financial Statements 30 General Fund Balance sheet 31 Statement of changes in fund balance 32 Statement of revenues - actual and budget 33 Statement of expenditures - actual and budget 34 - 37 Special Revenue Funds: Federal Revenue Sharing Fund Balance sheet 38 Statement of revenue, expenditures and changes in fund balance - actual and budget 39 Civic Center Fund Balance sheet 40 Statement of revenue, expenditures and changes in fund balance - actual and budget 41 Recreation Operating Fund Balance sheet 42 Statement of revenue, expenditures and changes in fund balance - actual and budget 43 - 44 Recreation Capital Improvement Fund Balance sheet 45 Statement of revenue, expenditures and changes in fund balance - actual and budget 46 Special Assessment Fund Balance sheet 47 Statement of revenue, expenditures and changes in fund balance - actual and budget 48 Proprietary Funds Enterprise Funds: Electric Fund Balance sheet 49 Statement of income and retained earnings - actual and budget 50 (continued) PARKER, FICKLING 8 JORDAN; CERTIFIED PUBLIC ACCOUNTANTS, P.C. CITY OF FAIRHOPE, ALABAMA SEPTEMBER 30, 1980 TABLE OF CONTENTS (continued) Proprietary Funds (continued): Enterprise Funds: Natural Gas Fund Balance sheet Statement of income and retained earnings - actual and budget Water and Wastewater Fund Balance sheet Statement of income and retained earnings - actual and budget Page 51 52 53 54 PARKER, FICKLING 8 JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. I PARKER, FICKLING & JORDAN, P.C. CERTIFIED PUBLIC ACCOUNTANTS FAIRHOPE, ALABAMA SAMUEL F. PARKER LESLIE T. FICKLING H. ALLEN JORDAN MEMBER, AMERICAN INSTITUTE OF XAVIER A. HARTMANN. III CERTIFIED PUBLIC ACCOUNTANTS J. KENNETH HANAK DONALD G. CHASTAIN ACCOUNTANTS' OPINION December 2, 1980 Honorable James P. Nix, Mayor and Members of the City Council City of Fairhope, Alabama We have examined the combined financial statements of the City of Fairhope, Alabama and the combining, individual fund, and account group financial statements of the City of Fairhope, Alabama as of and for the year ended September 30, 1980, as listed in the table of contents. 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. The accompanying financial statements do not include the assets, liabilities, or revenues and expenditures of the Fairhope Public Library Board of the City of Fairhope, Alabama. The financial statements of the Fairhope Public Library Board are submitted under separate cover. In our opinion, the combined financial statements referred to above present fairly the financial position of the City of Fairhope, Alabama at September 30, 1980, and the results of its operations and changes in financial position of its proprietary fund types for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Also, in our opinion, the combining, individual fund, and account group financial statements referred to above present fairly the financial position of the individual fund and account groups of the City of Fairhope, Alabama at September 30, 1980, and the results of operations of such funds and changes in financial position of individual proprietary funds for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. (continued) PARKER, FICKLING & JORDAN. CERTIFIED PUBLIC ACCOUNTANTS. P.C. Our examination was made for the purpose of forming an opinion on the combined financial statements taken as a whole and on the combining, individual fund, and account group financial statements. The accompanying financial infor- mation listed as supporting schedules on the table of contents is presented for purposes of additional analysis and is not a required part of the combined financial statements of the City of Fairhope, Alabama. The information has been subjected to the auditing procedures applied in the examination of - the combined, combining, individual fund, and account group financial statements and, in our opinion, is fairly stated in all material respects in relation to the combined financial statements taken as a whole. Certified Public Accountants PARKER, FICKLING & JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. CITY OF FAIRHOPE, ALABAMA ALL FUND TYPES AND ACCOUNT GROUPS COMBINED BALANCE SHEET • SEPTEMBER 30, 1980 Governmental Fund Types Special Special ASSETS General Revenue Assessment CASH: First National Bank of Baldwin County $ 222,952 $ 93,346 $ 198,246 Sinking Fund - Merchants National Bank of Mobile 30,414 62,358 On hand 150 RECEIVABLES (net of allowance for uncollectible): Utility customers Miscellaneous 4,000 Federal Emergency Management Agency 180,933 Federal Disaster Assistance Administration 28,631 Federal Aviation Administration 40,733 State of Alabama 6,879 Street improvement assessments 29,201 MATERIALS INVENTORIES PREPAID OPERATING EXPENSES DUE FROM THE OTHER FUNDS OF THE CITY OF FAIRHOPE SINKING FUNDS - Restricted cash and invest- ments, Merchants National Bank of Mobile PROPERTY, PLANT AND EQUIPMENT: Land, buildings and other improvements Vehicles and equipment Plant and distribution system Construction in progress Accumulated depreciation UNAMORTIZED DEBT COST UNAMORTIZED DEFERRED PLANT MAINTENANCE AMOUNT AVAILABLE IN DEBT SERVICE FUNDS AMOUNT TO BE PROVIDED FOR RETIREMENT OF GENERAL LONG TERM DEBT TOTAL ASSETS 261,446 212,744 $1,018,083 (continued) 2,940 3,156 443,838 $ 96,286 $ 707,598 PARKER, FICKLING & JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 3 Proprietary Account Groups Fund Types General General Fixed Long Term Enterprise Assets Debt $ 851,554 $ $ 89,303 274,996 36,236 2,750 53,345 165,062 23,345 Eliminations (261,446) Totals (Memorandum Only) September 30, 1980 1979 $ 1,366,098 $ 1,233,211 182,075 137,982 150 250 274,996 273,387 46,332 32,884 183,683 171,576 81,976 63,463 40,733 50,683 6,879 - 473,039 339,644 165,062 218,720 23,345 23,136 242,612 242,612 257,011 3,938,196 3,938,196 3,418,604 317,656 460,464 778,120 706,851 8,332,357 8,332,357 7,940,843 212,744 235,995 (2,712,836) (2,712,836) (2,492,005) 14,384 14,384 16,287 25,454 25,454 31,945 75,473 75,473 47,876 999,827 999,827 1,012,424 $7,716,218 $4,398,660 $1,075,300 $ (261,446) $14,750,699 $13,720,767 (continued) The notes to the financial statements are an integral part of this statement. PARKER, FICKLING 8 JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. CITY OF FAIRHOPE, ALABAMA ALL FUND TYPES AND ACCOUNT GROUPS COMBINED BALANCE SHEET SEPTEMBER 30, 1980 LIABILITIES AND FUND EQUITY LIABILITIES Accounts payable, trade Contracts payable Accrued expenses and taxes: Payroll taxes Employees' retirement Interest Utility taxes Town of Daphne All other CUSTOMER DEPOSITS DUE TO THE FUNDS OF THE CITY OF FAIRHOPE NOTE PAYABLE - First National Bank of Baldwin County NOTE PAYABLE - McGowin Trusts GENERAL OBLIGATION BONDS, WARRANTS AND MORTGAGE PAYABLE REVENUE BONDS AND GENERAL OBLIGATION WARRANTS PAYABLE TOTAL LIABILITIES FUND EQUITY Contributed capital: United States Government Customers and developers, etc. Investment in general fixed assets Retained earnings Fund balance TOTAL FUND EQUITY TOTAL LIABILITIES AND FUND EQUITY Governmental Fund Types Special Special General Revenue Assessment $ 72,777 $ 517 $ 71,281 8,648 142 8,200 582 80 118,095 146,001 49,466 584,700 356,955 739 702,795 661,128 95,547 4,803 661,128 95,547 4,803 $1,018,083 $ 96,286 $ 707,598 PARKER, FICKLING 8 JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 4 Proprietary Account Groups Totals Fund Types General General (Memorandum Only) Fixed Long Term September 30, Enterprise Assets Debt Eliminations 1980 1979 $ 375,462 $ $ $ $ 448,756 $ 433,653 71,281 98,650 6,786 15,576 31,254 6,806 15,006 16,450 33,604 33,604 35,340 17,416 17,416 13,827 17,844 17,844 4,177 210 792 11,460 249,769 249,769 208,506 143,271 (261,446) - - 146,001 - 49,466 - 1,075,300 1,660,000 1,685,000 2,147,000 2,147,000 2,279,000 2,998,168 - 1,075,300 (261,446) 4,872,511 4,817,317 1,069,106 1,069,106 1,053,300 534,045 534,045 460,234 4,398,660 4,398,660 3,850,372 3,114,899 3,114,899 2,846,718 761,478 692,826 4,718,050 4,398,660 9,878,188 8,903,450 $7,716,218 $4,398,660 $1,075,300 $ (261,446) $14,750,699 $13,720,767 The notes to the financial statements are an integral part of this statement. PARKER, FICKLING 8 JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C.. CITY OF FAIRHOPE, ALABAMA ALL SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1980 ASSETS CASH In First National Bank of Baldwin County On hand RECEIVABLES CIGARETTE STAMP INVENTORY TOTAL ASSETS LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable, trade Payroll taxes payable Payable - City of Fairhope General Fund TOTAL LIABILITIES FUND BALANCE TOTAL LIABILITIES AND FUND BALANCE Revenue Civic Recreation Recreation Sharing Center Operating Improvement $ 1 $ 53,786 $ 16,789 $ 22,770 491 2,449 $ 1 $ 53,786 $ 17,280 $ 25,219 $ $ $ 517 $ 142 80 739 1 53,786 16,541 25,219 $ 1 $ 53,786 $ 17,280 $ 25,219 PARKER, FICKLING & JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 5 1980 $ 93,346 2,940 $ 96,286 $ 517 142 80 739 95,547 $ 96,286 Totals (Memorandum Only) September 30, 1,277 $ 64,035 53,748 $ 64,035 The notes to the financial statements are an integral part of .this statement. PARKER, FICKLING 8 JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. CITY OF FAIRHOPE, ALABAMA GOVERNMENTAL FUNDS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED SEPTEMBER 30, 1980 REVENUES Taxes Licenses and permits Fines and forfeitures State of Alabama United States Government Interest and rents Charges for services Other revenue Loan proceeds disbursed Transfers from Utility Funds Transfer from General Fund Transfer from other funds Total revenues EXPENDITURES General government Beach department Sanitation department Police department Fire department Street department Staff agencies and other Debt service payments Principal Interest Other expenditures Transfers to other governmental fund types Recreation department Total expenditures EXCESS REVENUES OVER EXPENDITURES FUND BALANCE (DEFICIT) AT BEGINNING OF YEAR 1977-1978 Assessment rolls Transfer of completed construction of special assessments Loan proceeds FUND BALANCE AT END OF YEAR Governmental Fund Types Special Special General Revenue Assessment $ 251,117 $ 83,943 $ 167,347 64,537 85,211 19,108 597,330 51,698 36,870 6,618 36,889 104,245 114,002 5,187 70,000 584,843 50,000 7,000 2,075,502 223,554 36,889 212,268 15,884 96,173 313,338 102,865 569,613� 101227 51,697 40,000 15,000 491476 14,028 35,732 607,286 503000 73000 94,030 2,067,130 181,755 35,732 8,372 41,799 1,157 652,756 53,748 (13,678) 257,613 (240,289) $ 661,128 $ 95,547 $ 4,803 PARKER, FICKLING & JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 0 Totals Inter Fund (Memorandum Only) Revenue Year ended September 30, Eliminations 1980 1979 $ $ 335,060 $ 283,721 167,347 148,012 64,537 74,001 104,319 103,271 649,028 300,949 80,377 44,297 104,245 99,579 119,189 105,003 70,000 149,852 584,843 390,000 (50,000) - - (7,000) - - (57,000) 2,278,945- 1,698,685 212,268 190,222 15,884 12,615 96,173 112,254 313,338 268,522 102,865 67,807 569,613 382,015 61,924 70,845 55,000 55,000 99,236 80,418 607,286 337,711 (57,000) - - 94,030 119,335 (57,000) 2,227,617 1,696,744 51,328 1,941 692,826 546,437 2572613 416,150 (240,289) (432,150) 160,448 $ - $ 761,478 $ 692,826 The notes to the financial statements are an integral part of this statement. PARKER, FICKLING 8 JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. CITY OF FAIRHOPE, ALABAMA GENERAL, SPECIAL REVENUE AND SPECIAL ASSESSMENT FUNDS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1980 General Fund Special Revenue Funds ver ver (Under) (Under) Actual Budget Budget Actual Budget Budget REVENUES Taxes $ 251,117 $ 241,393 $ 9,724 $ 83,943 $ 76,280 $ 7,663 Licenses and permits 167,347 155,700 11,647 Fines and forfeitures State of Alabama 64,537 85,211 70,000 70,085 (5,463) 15,126 19,108 19,108 United States Government 597,330 - 597,330 51,698 6,618 51,700 (2) 6,618 Interest and rents 36,870 35,220 1,650 Charges for services Other 104,245 114,002 100,200 33,300 4,045 80,702 5,187 5,060 127 revenue Loan proceeds 70,000 - 70,000 Transfers from Utility Funds Transfer from General Fund 584,843 456,000 128,843 50,000 100,000 (50,000) Transfer from other funds 7,000 7,000 Total revenues 2,075,502 1,161,898 913,604 223,554 233,040 (9,486) EXPENDITURES General government 212,268 164,325 47,943 Beach department 15,884 10,429 5,455 Sanitation department 96,173 72,000 24,173 Police department 313,338 298,290 15,048 Fire department 102,865 79,625 23,240 Street department 569,613 333,752 235,861 Staff agencies and other 10,227 6,794 3,433 51,697 51,700 (3) Debt service payments Principal 40,000 40,000 - 15,000 15,000 - Interest 49,476 49,368 108 14,028 14,263 (2 Other expenditures 607,286 - 607,286 Transfers to other governmental fund types 50,000 100,000 (50,000) 7,000 - 7,0 Recreation department 94,030 49,530 44,5 0 Total expenditures 2,067,130 1,154,583 912,547 181,755 130,493 51,262 EXCESS OF REVENUE OVER EXPENDITURES 8,372 7,315 1,057 41,799 102,547 (60,748) FUND BALANCE (DEFICIT) AT BEGINNING OF YEAR 652,756 652,756 - 53,748 53,748 - 1977-1978 ASSESSMENT ROLLS TRANSFER OF COMPLETED CONSTRUCTION OF SPECIAL ASSESSMENTS FUND BALANCE AT END OF YEAR 661,128 $ 660,071 $ 1,057 S 55.547 $ 156,295 $ (60,748) PARKER, FICKLING & JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. Special Assessment Fund ever (Under) Actual Budget Budget 36,889 38,000 (1,111) 36,889 38,000 (1,111) 35,732 35,732 - 35,732 35,732 - 1,157 2,268 (1,111) (13,678) (13,678) - 257,613 - 257,613 (240,289) - (240,289) $ 4,803 $ (11,410) $ 16,213 TOTALS (Memorandum Only) Inter -fund Over Revenue (Under) Eliminations Actual Budget Budget $ $ 335,060 $ 317,673 $ 17,387 167,347 155,700 11,647 64,537 70,000 (5,463) 104,319 70,085 34,234 649,028 51,700 597,328 80,377 73,220 7,157 104,245 100,200 4,045 119,189 38,360 80,829 70,000 - 70,000 584,843 456,000 128,843 (50,000) - - - (7,000) - - - (57,000) 2,278,945 1,332,938 946,007 212,268 164,325 47,943 15,884 10,429 5,455 96,173 72,000 24,173 313,338 298,290 15,048 102,865 79,625 23,240 569,613 333,752 235,861 61,924 58,494 3,430 55,000 55,000 - 99,236 99,363 (127) 607,286 - 607,286 (57,000) - - - 94,030 49,530 44,500 (57,000) 2,227,617 1,220,808 1,006,809 - 51,328 112,130 (60,802) 692,826 692,826 - 257,613 - 257,613 (240,289) - (240,289) S - S 761.478 S 804.956 $ (43,478) PARKER, FICKLING & JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. CITY OF FAIRHOPE, ALBAMA ALL PROPRIETARY FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1980 Water and Electric Natural Gas- Wastewater ASSETS Fund Fund Fund CURRENT ASSETS Cash in First National Bank of Baldwin County: Operating accounts $ 257,051 $ 176,907 $ 18,662 Interest bearing accounts 232,502 92,656 40,439 Construction accounts 459 Sinking fund accounts 13,433 19,445 Cash in Merchants National Bank of Mobile, bond sinking funds 44,700 44,603 502,986 314,263 123,608 Receivables: Utility customers 271,599 26,036 Federal agencies 22,135 6,662 27,298 Other receivables -4,381 13,197 18,658 Allowance for uncollectible accounts (19,703) (1,860) (1,076) 278,412 44,035 44,880 Materials inventories 80,629 47,515 36,918 Prepaid operating expenses 7,690 9,821 5,834 Total current assets 869,717 415,634 211,240 SINKING FUNDS - Restricted cash Merchants National Bank of Mobile - reserve and replacement funds 153,930 88,682 PROPERTY, PLANT AND EQUIPMENT (at cost) Plant and distribution system 2,444,974 1,432,898 4,454,485 Vehicles and equipment 156,639 112,009 49,008 2,601,613 1,544,907 4,503,493 Accumulated depreciation (761,647) (824,029) (1,127,160) Property, plant and equipment - net 1,839,966 720,878 3,376,333 OTHER ASSETS Unamortized debt cost 1,066 13,318 Unamortized deferred plant maintenance 25,454 Inter fund receivables 129,722 11,626 Total other assets 1,066 129,722 50,398 TOTAL ASSETS $2,710,749 $1,420,164 $3,726,653 PARKER, FICKLING 9 JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 0 Totals (Memorandum Only) September 30, Eliminations 1980 1979 $ $ 452,620 $ 389,364 365,597 215,183 459 19,975 32,878 30,468 89,303 86,103 940,857 741,093 297,635 287,963 56,095 182,813 36,236 21,985 (22,639) (14,576) 367,327 478,185 165,062 217,443 23,345 23,136 1,496,591 1,459,857 242,612 257,011 8,332,357 7,940,843 317,656 275,083 8,650,013 8,215,926 (2,712,836) (2,492,005) 5,937,177 5,723,921 14,384 16,287 25,454 31,945 (141,348) - (141,348) 39,838 48,232 $ (141,348) $7,716,218 $7,489,021 (continued) The notes to the financial statements are an integral part of this statement. PARKER, FICKLING & JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. CITY OF FAIRHOPE, ALABAMA' ALL PROPRIETARY FUNDS COMBINING BALANCE SHEET (CONTINUED) SEPTEMBER 30, 1980 Water and Electric Natural Gas Wastewater LIABILITIES AND CAPITALIZATION Fund Fund Fund CURRENT LIABILITIES Accounts payable, trade $ 310,840 $ 48,993 $ 15,629 Accrued expenses and taxes: Payroll taxes 3,202 1,638 1,946 Employees' retirement 2,742 1,796 2,268 Interest 4,186 7,200 22,218 Salaries Utility taxes 17,416' Employees withholdings 112 19 79 Town of Daphne 17,844 27,658 28,497 26,511 Customer deposits 210,694 39,075 Revenue bonds 'and general obligation warrants payable 32,000 45,000 60,000 Total current liabilities 581,192 122,490 141,215 NON CURRENT LIABILITIES Revenue bonds and general obligation warrants payable. 290,000 495,000 1,225,000 Interfund payables 218,182 14,483 51,954 Total non current liabilities 508,182 509,483 1,276,954' Total liabilities 1,089,374 631,973 1,418,169 CAPITALIZATION Contributions in aid of construction: Unted States Government 1,069,106 Customers and developers 84,233 72,055 377,757 Retained earnings 1,537,142 716,136 861,621 Total capitalization 1,621,375 788,191 2,308,484 TOTAL LIABILITIES AND CAPITALIZATION $2,710,749 � $1,420,164 T $3,726,653 PARKER, FICKLING & JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 0 Eliminations E Totals (Memorandum Only) September 30, 1980 1979 $ 375,462 $ 355,769 6,786 13,345 6,806 8,961 33,604 35,340 9,991 17,416 13,827 210 761 17,844 4,177 82,666 86,402 249,769 208,506 137,000 132,000 844,897 782,677 2,010,000 2,147,000 (141,348) 143,271 199,092 (141,348) 2,153,271 2,346,092 (141,348) 2,998,168 3,128,769 1,069,106 1,053,300 534,045 460,234 3,114,899 2,846,718 4,718,050 4,360,252 $ (141,348) $7,716,218 $7,489,021 The notes to the financial statements are an integral part of this statement. PARKER, FICKLING 6 JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. CITY OF FAIRHOPE, ALABAMA ALL PROPRIETARY FUND TYPES COMBINED STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED SEPTEMBER 30, 1980 Water and Electric Natural Gas Wastewater Fund Fund Fund OPERATING REVENUES Utility services $2,439,541 $1,602,658 $ 548,015 Other charges, sales and receipts 43,189 3,207 15,123 Total operating revenues 2,482,730 1,605,865 563,138 OPERATING EXPENSES Cost of utilities sold 1,779,169 960,994 62,359 Operating, maintenance and administrative salaries 180,343 111,717 140,354 Operation and maintenance of plant 21,585 11,955 77,643 Gasoline and oil 9,362 8,914 6,468 Vehicle and equipment repairs 8,163 5,172 5,129 Audit fees 2,100 2,100 2,100 Accounting services 2,400 1,800 1,800 Bad debts 7,073 1,000 Christmas bonuses 700 450 600 Bond issue expense 185 885 Computer services 6,352 5,106 5,455 Dues and memberships 9,877 3,561 123 Electric energy furnished City of Fairhope 23,288 Engineering services 13,299 7,358 4,841 Insurance,.casualty 22,286 17,140 16,756 Insurance, employees group 13,289 6,292 10,781 Legal fees 205 442 Miscellaneous 519 9 377 Office supplies and postage 6,163 4,392 1,472 Payroll taxes 13,930 7,807 9,506 Professional services 120 Employees' retirement 13,393 6,492 11,091 Telephone 3,552 2,778 4,147 Rental 607 1,150 Surveyor 100 Travel, training and school 2,387 1,707 583 Uniforms 562 293 374 Trustee fees 580 1,626 Distribution of joint revenue 6,300 Utilities 1,260 Total operating expenses 2,140,704 1,175,482 366,062 EARNINGS FROM OPERATIONS BEFORE DEPRECIATION 342,026• 430,383 197,076 Depreciation 80,448 48,747 119,069 EARNINGS FROM OPERATIONS (carried forward) $ 261,578 $ 381,636 $ 78,007 PARKER, FICKLING & JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. Totals (Memorandum Year ended Sept( 1 9R(1 $4,590,214 61,519 4,651,733 2,802,522 432,414 111,183 24,744 18,464 6,300 6,000 8,073 1,750 1,070 16,913 13,561 23,288 25,498 56,182 30,362 647 905 12,027 31,243 120 30,976 10,477 1,757 100 4,677 1,229 2,206 6,300 1,260 3,682,248 969,485 248,264 $ 721,221 The notes to the financial statements are an in PARKER, PICKLING 6 JORDAN, CERTIFIED .......� .._. CITY OF FAIRHOPE, ALABAMA ALL PROPRIETARY FUND TYPES COMBINED STATEMENT OF INCOME AND RETAINED EARNINGS (CONTINUED) FOR THE YEAR ENDED SEPTEMBER 30, 1980 Electric Natural Gas Fund Fund EARNINGS FROM OPERATIONS (brought forward) $ 261,578 $ 381,636 OTHER (DEDUCTIONS) INCOME Interest expense Interest earned Earnings transferred to the General Fund of the City of Fairhope Purchased natural gas refunds for prior years Transfer to General Fund for street resurfacing Extraordinary losses: Flood damage repair cost Federal assistance for flood damage Hurricane damage direct repair cost Federal assistance for hurricane damage Reimbursement Red Cross Total other (deductions) income NET EARNINGS (LOSS) Retained earnings at beginning of year RETAINED EARNINGS AT END OF YEAR Water and Wastewater Fund $ 78,007 (17,985) (21,850 (71,300) 21,599 27,334 11,915 (218,000) (218,000) (20,000) 180,462 (128,843) (13,535) 9,301 (67,490) (898) (1,305) 77,882 (6,976) 4,656 (203,572) (168,779) (80,690) 58,006 212,857 (2,683) 1,479,136 503,279 864,304 $1,537,142 $ 716,136 $ 861,621 PARKER, FICKLING & JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 11 Totals (Memorandum 0; Year ended Septei 1980 $ 721,221 (111,143) 60,848 (456,000) 180,462 (128,843) (13,535) 9,301 (69,693) 70,906 4,656 (453,041) 268,180 2,846,719 $3,114,899 The notes to the financial statements are an intf PARKER, FICKLING 6 JORDAN, CERTIFIED F _. CITY OF FAIRHOPE, ALABAMA ALL PROPRIETARY FUND TYPES COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION FOR THE YEAR ENDED SEPTEMBER 30, 1980 SOURCES OF WORKING CAPITAL From operations: Net earnings (loss) Add charges to earnings not requiring current working capital, depreciation and amortization Working capital provided by operations Proceeds of warrant issue Contributions and grants in aid of construction Disposal of equipment Decrease (increase) in interfund receivables Decrease (increase) in sinking funds Total sources of working capital USES OF WORKING CAPITAL Acquisition of property, plant and equipment Reduction of long term debt Increase in deferred expense Decrease (increase) in interfund payables Total uses of working capital INCREASE (DECREASE) IN WORKING CAPITAL Electric Natural Gas Water and Wastewater Fund $ 58,006 $ 212,857 $ (2,683) 80,633 48,747 127,279 138,639 261,604 124,596 36,410 14,483 38,725 5,715 13,195 7,351 (11,626) 1,138 13,261 188,244 290,291 164,956 350,857 28,172 88,207 32,000 45,000 60,000 (11,876) 9,377 67,240 370,981 82,549 215,447 $ (182,737) $ 207,742 $ (50,491) PARKER, FICKLING & JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 12 Totals (Memorandum Only) Year ended September 30, 1980 1979 $ 268,180 256,659 524,839 89,618 5,715 8,920 14,399 643,491 467,236 137,000 64,741 668,977 $ (25,486) (continued) 66,356 (5,545) 585,994 132,000 4,148 189,932 912,074 $ 250,320 The notes to the financial statements are an integral part of this statement. PARKER, FICKLING d JORDAN. CERTIFIED PUBLIC ACCOUNTANTS, P.C. CITY OF FAIRHOPE, ALABAMA ALL PROPRIETARY FUND TYPES COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION (CONTINUED) FOR THE YEAR ENDED SEPTEMBER 30, 1980 NET CHANGES IN ELEMENTS OF WORKING CAPITAL — INCREASES (DECREASES) CURRENT ASSETS: Cash Receivables Inventories Prepaid expenses Increase (decrease) in current assets CURRENT LIABILITIES Accounts payable, trade Accrued expenses General obligation note payable Customer deposits Revenue bonds and general obligation warrants payable Increase (decrease) in current liabilities INCREASE (DECREASE) IN WORKING CAPITAL Water and Electric Natural Gas Wastewater Fund Fund Fund $ 42,583 $ 196,890 $ (39,709) (135,597) 19,333 5,406 (62,723) 5,899 4,443 (10) 269 (50) (155,747) 222,391 (29,910) 12,000 835 6,858 (9,173) 8,814 (3,377) 22,163 19,100 2,000 5,000 (2,000) 26,990 14,649 20,581 $ (182,737) $ 207,742 $ (50,491) PARKER, FICKLING 8 JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 13 Total: (Memorandur Year ended Sept 1980 $ 199,764 (110,858) (52,381) 209 $ 36,734 19,693 (3,736) 41,263 5,000 62,220 $ (25,486) The notes to the financial statements are an in PARKER, FICKLING 8 JORDAN, CERTIFIEL . . 14 CITY OF FAIRHOPE, ALABAMA STATEMENT OF GENERAL FIXED ASSETS SEPTEMBER 30, 1980 AND 1979 ASSETS Land and buildings Municipal beach and pier Municipal airport Street paving and improvements Municipal fishing dock Equipment Recreational facilities TOTAL GENERAL FIXED ASSETS INVESTMENT INVESTMENT IN GENERAL FIXED ASSETS AT BEGINNING OF YEAR Add: Acquisitions during the current year Less: Retirement during the current year INVESTMENT IN GENERAL FIXED ASSETS AT END OF YEAR 1980 1979 $ 255,333 $ 250,842 644,719 644,719 661,716 510,449 1,680,600 1,362,605 29,572 29,572 460,464 431,768 666,256 620,417 $4,398,660 $3,850,372 $3,850,372 $3,408,993 554,221 465,028 4,404,593 3,874,021 5,933 23,649 $4,398,660 $3,850,372 The notes to the financial statements are an integral part of this statement. PARKER. FICKLING i JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 15 CITY OF FAIRHOPE, ALABAMA STATEMENT OF CHANGES IN GENERAL FIXED ASSETS FOR THE YEAR ENDED SEPTEMBER 30, 1980 General General Fixed Assets Fixed Assets Oct.1,1979 Additions Retirements Sept.30,1980 LAND AND BUILDINGS Park property $ 1,000 $ $ $ 1,000 City garage property 29,090 29,090 Sundry property 8,106 8,106 City administration building 82,792 1,934 84,726 Police and fire station 64,682 2,557 67,239 City garage and warehouse 45,974 45,974 Civic Center building 17,198 17,198 City pound 2,000 2,000 250,842 4,491 255,333 MUNICIPAL BEACH AND PIER 644,719 644,719 MUNICIPAL AIRPORT 510,449 151,267 661,716 MUNICIPAL FISHING DOCK 29,572 29,572 STREET PAVING AND IMPROVEMENTS 1,362,605 317,995 1,680,600 EQUIPMENT Police Department 59,230 15,993 5,933 69,290 Fire Department 88,113 3,363 91,476 Street Department 221,495 10,316 231,811 General Government 24,273 3,605 27,878 Sanitation Department 38,657 1,352 40,009 431,.768 34,629 5,933 460,464 RECREATIONAL FACILITIES Land 64,000 64,000 Stimpson Field 79,312 45,839 125,151 Tennis courts 25,033 25,033 Swimming pools 103,186 103,186 Bath houses and restrooms 31,597 31,597 Equipment 5,518 5,518 Fencing 15,856 15,856 Young Street building 3,667 3,667 Football stadium and buildings 292,248 292,248 620,417 45,839 666,256 TOTALS $3,850,372 $ 554,221 $ 5,933 $4,398,660 The notes to the financial statements are an integral part of this statement. PARKER, FICKLING B JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 16 CITY OF FAIRHOPE, ALABAMA STATEMENT OF GENERAL LONG TERM DEBT SEPTEMBER 30, 1980 AND 1979 AMOUNT AVAILABLE AND TO BE PROVIDED FOR THE PAYMENT OF GENERAL LONG TERM DEBT 1980 Amount available in debt service funds $ 75,473 Amount to be provided 999,827 TOTAL AVAILABLE AND TO BE PROVIDED $1,075,300 1979 $ 47,876 1,012,424 $1,060,300 GENERAL LONG TERM DEBT OUTSTANDING 1980 1979 General obligation refunding warrants (dated June 30, 1975) $ 450,000 $ 490,000 General obligation recreational warrants (dated July 1, 1976) 245,000 260,000 General obligation various purpose warrants (dated December 1, 1978) 535,000 535,000 General obligation public improvements bonds (dated December 1, 1978) 360,000 400,000 Mortgage payable, First National Bank of Baldwin County (dated August 27, 1980) 70,000 - Total general obligation warrants and bonds 1,660,000 1,685,000 Less bonds and warrants payable by Special Assessment Fund: Portion of general obligation various purpose warrants (dated December 1, 1978) 224,700 224,700 General obligation public improvement bonds (dated December 1, 1978) 360,000 400,000 Total 584,700 624,700 TOTAL GENERAL LONG TERM DEBT OUTSTANDING $1,075,300 $1,060,300 r The notes to the financial statements are an integral part of this statement. PARKER, FICKLING i JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 17 CITY OF FAIRHOPE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1980 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Purposes of Funds and Account Groups - The City utilizes the following funds account groups: 1. The General Fund is used to account for all revenues and ex- penditures applicable to the general operations of city government which are not properly accounted for in another fund. All general operating revenues which are not restricted or designated as to use by outside sources are recorded in the General Fund. 2. Special Revenue Funds are operating funds for which the use of revenues is restricted or designated by outside sources, and to account for revenue derived from specific taxes or other specific resource to finance particular functions or activi- ties of government. 3. Special Assessment Fund is used to account for special assess- ments levied to finance public improvements. 4. The Electric Fund, Natural Gas Fund and Water and Wastewater Fund, which are Enterprise Funds, are used to account for the operations of the utilities, related debt, property, plant and equipment. S. The General Fixed Assets Account Group is used to account for fixed assets required for general city purposes. 6. The General Long Term Debt Account Group is used to account for the outstanding principal balances of General Long Term Debt, .not accounted for in the Enterprise Funds and Special Assess- ment Fund. Basis of Accounting: 1. General Fund, Special Revenue Fund and Special Assessment Fund - The accounts of the governmental funds are maintained on the 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 they are both measurable and available or have not. been received at the normal time of receipt. 2. Enterprise Funds - The accounts of the Utility Funds are main- tained on the accrual basis, revenues are recorded when earned and liabilities when they are incurred. PARKER. FICKLING 3 JORDAN. CERTIFIED PUBLIC ACCOUNTANTS, P.C. 18 CITY OF FAIRHOPE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1980 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 2. Enterprise Funds (continued) Property, plant and equipment - Additions, improvements and renewals are capitalized at cost. Maintenance and repairs are charged to expense as incurred. Depreciation is provided us- ing 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 pur- chases at face value, the utility receivables of the Natural Gas Fund and 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 issue cost and discount - Issuance expenses on long term debt are deferred and amortized, on the bonds outstanding method, over the terms of the related issues. Deferred charges - Expenditures for operation and maintenance which will benefit future periods are amortized over the periods benefited. 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. 3. General Fixed Assets Account Group - Fixed assets acquired or constructed for general governmental services are recorded as expenditures in the funds making the expenditure and capita- lized at cost in the General Fixed Assets Account Group. No provision is being made for depreciation. Retired assets are removed at their respective cost. PARKER. FICKLING B JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 19 CITY OF FAIRHOPE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1980 NOTE 2 RETIREMENT PLAN The City has a funded contributory retirement' plan, which went into effect January 1, 1980, with the Employees' Retirement System of Alabama. All new employees (if they meet age requirements) of the City must become members -of the retirement plan. Monthly contri- butions to the plan for current and past service costs are based on actuarial estimates prepared by the Employees' Retirement System of Alabama. Employees contribute 5% of their regular salary and the City's contribution rate for the year ended September 30, 1980 was 11.75% of the salary. The City at September 30, 1980 also had a retirement plan with New England Mutual Life Insurance Company. The City Council, on October 22, 1979, approved termination of the retirement plan with New England Life effective July 1, 1979. The employees that were participating in the New England Life re- tirement plan became participants of the Alabama State Retirement Plan. The City was in the process of liquidating the plan assets with New England Life. NOTE 3 COMBINED BALANCE SHEET - INTERPRETATION OF "TOTAL MEMORANDUM ONLY" COLUMN ' Amounts in the "Total Memorandum Only" column represent the mathe- matical summing of the combined balance sheet line items of the fund types and account groups included therein. Because these fund types and account groups utilize different bases of accounting, amounts in the "Total" column do not necessarily represent compara- rable total resources available for spending or appropriation. The "Total" column usually includes an amount which, while classified as an asset, is not an asset in the usual sense. The caption "Amounts to be provided" represents only the amount of future revenues required to liquidate existing debt recorded in the long-term debt account group. NOTE 4 ELIMINATIONS For analysis purposes, interfund receivables, payables, revenues and transfers in the combined financial statements were elimina- ted. PARKER, FICKLING & JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 20 CITY OF FAIRHOPE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1980 NOTE 5 STREET IMPROVEMENT ASSESSMENTS RECEIVABLE Street improvement assessment receivables as of September 30, consisted of unpaid assessments from the following years: September 30, Year 1980 1979 1962 $ 151 $ 151 1963 1,449 1,449 1966 868 868 1970 5,434 7,262 1974 21,299 25,763 1977-1978 443,838 304,151 TOTAL $473,039 $339,644 NOTE 6 GENERAL FUND - CASH IN FIRST NATIONAL BANK OF BALDWIN COUNTY The General Fund's cash in the First National Bank of Baldwin County at September 30, consisted of the following balances: September 30, 1980 1979 General operating $ 39,435 $ 15,107 Payroll 400 400 Airport - checking 4,151 2,871 Airport - certificates of -deposit 40,000 . Beach revenue - checking 476 19,465 Beach revenue - savings 25,144 - Flood disaster 17,523 31,059 Parking authority 4,987 4,987 Municipal fountain - savings 2,450 2,325 Industrial park - savings 4,660 4,421 State gasoline tax 15,227 12,025 Warrant - checking account 2 10,360 Warrant - savings account. 70,800 - Warrant - certificates of deposit - 195,506 Sinking fund - 1975 G. 0. Warrants 37,697 36,033 TOTAL $222,952 $374,559 NOTE 7 FEDERAL REVENUE SHARING FUNDS The City of Fairhope's Federal revenue sharing funds received during the fiscal years ended September 30, 1980 and 1979 were expended to the City of Fairhope Public Library Board for operating and maintenance of the Fairhope Public Library. PARKER, FICKLING B JORDAN, CERTIFIED PUBLIC ACCOUNTANTS. P.C. 21 CITY OF FAIRHOPE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1980 NOTE 8 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. Property owners were assessed for their share of the cost. Also, on completion of the project the cost of the street paving was transferred to the General Fixed Assets Fund and the water and sewer improvements were transferred to the Water and Wastewater Fund. NOTE 9 SINKING FUNDS - PROPRIETARY FUNDS The cash and investments in these sinking funds are restricted as to their use in accordance with their respective indentures. The amounts in the various sinking funds was as follows at September 30: September 30, 1980 1979 1950 series $ - $ 14,061 1953 series 32,418 '30,191 1961 series 255,310 254,225 1972 series 36,797 37,247 1973 series 19,445 18,216 1978 series 7,390 7,390 General obligation warrants 13,433 12,252 Total $364,793 $373,582 NOTE 10 REVENUE BONDS AND WARRANTS PAYABLE - PROPRIETARY FUNDS September 30, 1980 1979 'Electric Fund (a) General obligation electric warrants dated August 22, 1973, interest rate 5.2% payable semi annually, remaining principal payable July 1, 1981 through July 1, 1988 Current $ 32,000 Non current 290,000 Total 322,000 (continued) $ 30,000 322,000 352,000 PARKER, FICKLING d JORDAN, CERTIFIED PUBLIC'ACCOUNTANTS, P.C. 22 CITY OF FAIRHOPE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1980 NOTE 10 REVENUE BONDS AND WARRANTS PAYABLE - PROPRIETARY FUNDS (continued) September 30, 1980 1979 Natural Gas Fund (a) First mortgage gas, water and waste- water revenue bonds, 1961 series, dated December 1, 1961,.interest rate 4% on $540,000, payable semi annually, remaining principal payable December 1, 1980 through December 1, 1991 Current $ 45,000 $ 40,000 Non current 495,000 540,000 Total 540,000 580,000 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 - 12,000 Non current - - Total -0- 12,000 (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 10,000 -0- Non current- 25,000 35,000 Total 35,000 35,000 (c) First mortgage water and wastewater revenue bonds, 1972 series, dated December 1, 1972, interest rate 4 1/2 to 5%, on $270,000 and 5 to 5.3% on $440,000, payable semi annually, remaining principal payable December 1, 1980 through December 1, 1994 Current 30,000 30,000 Non current 680,000 710,000 Total 710,000 740,000 PARKER, FICKLING d JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 23 CITY OF FAIRHOPE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1980 NOTE 10 REVENUE BONDS AND WARRANTS PAYBLE - PROPRIETARY FUNDS (continued) September 30, 1980 1979 (d) Special obligation wastewater revenue Bonds, Alabama Pollution Control Finance Authority, 1973 series, dated January 1, 1973, interest rate 5.5% on $40,000 and 5.9% on $140,000, payable semi annually, remaining principal payable January 1, 1981 through January 1, 1989 Current $ 20,000 $ 20,000 Non current 160,000 180,000 Total 180,000 200,000 (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 -0- -0- Non current 360,000 360,000 Total 360,000 360,000 TOTAL BONDS AND WARRANTS PAYABLE - PROPRIETARY FUNDS $2,147,000 $2,279,000 NOTE 11 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 retired 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. The mortgage payable to First National Bank of Baldwin County is secured by certain parcels of land located at the City of Fairhope Municipal Airport. PARKER, FICKLING 9 JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 24 CITY OF FAIRHOPE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1980 NOTE 12 SUMMARY OF ALL LONG TERM DEBT OUTSTANDING - ALL FUNDS September 30, 1980 1979 General obligation electric warrants $ 322,000 $ 352,000 First mortgage revenue bonds - 1961 series 540,000 580,000 First mortgage revenue bonds - 1950 series - 12,000 First mortgage revenue bonds - 1953 series 35,000 35,000 First mortgage revenue bonds - 1972 series 710,000 740,000 Special obligation revenue bonds - 1973 series 180,000 200,000 Revenue bonds - 1978 series 360,000 360,000 Mortgage - First National bank of Baldwin County 70,000 - General obligation refunding warrants (6-30-75) 450,000 490,000 General obligation recreational warrants (7-1-76) 245,000 260,000 General obligation various purpose warrants (12-1-78) 535,000 535,000 General obligation public improvement bonds (12-1-78) 360•,000 400,000 TOTAL LONG TERM DEBT OUTSTANDING - ALL FUNDS $3,807,000 $3,964,000 PARKER, FICKLING t JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. CITY OF FAIRHOPE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1980 NOTE 13 SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY The' following is a summary of debt service requirements to matur- ity of general long term debt of the General, Special Revenue and Special Assessment Funds: General Obligation Refunding Warrants Total Fiscal Interest (Memorandum Year Principal Rate Interest Only) 1981 $ 40,000 6.25% $ 28,125 $ 68,125 1982 40,000 6.25 25,625 65,625 1983 40,000 6.25 23,125 63,125 1984 40,000 6.25 20,625 60,625 1985 40,000 6.25 18,125 58,125 1986 50,000 6.25 15,625 65,625 1987 50,000 6.25 12,500 62,500 1988 50,000 6.25 9,375 59,375 1989 50,000 6.25 6,250 56,250 1990 50,000 6.25 -3,125 53,125 1991 - - - - TOTALS $450,000 $162,500 $612,500 General Obligation Various Purpose Warrants Total Fiscal Interest (Memorandum Year Principal Rate Interest Only) 1981 $ 50,000 5.5% $ 30,940 $ 80,940 1982 50,000 5.7 28,140 78,140 1983 50,000 5.8 25,265 75,265 1984 55,000 5.9 22,193 77,193 1985 55,000 6 18,920 73,920 1986 55,000 6.25 15,551 70,551 1987 55,000 6.25 12,113 67,113 1988 55,000 6.25 8,677 63,677 1989 55,000 6.3 5,225 60,225 1990 55,000 6.35 1,746 56,746 1991 - - - - TOTALS $535,000 $168,770 $703,770 PARKER, FICKLING 8 JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. d 25 1, Mortgage Payable, First National Bank of Baldwin County Total Fiscal Interest (Memorandum Year Principal Rate Interest Only) 1981 $ - 6 1 2% $ 4,550 $ 4,550 1982 70,000 6 1/2 4,550 74,550 $ 70,000 $ 9,100 $ 79,100 General Obligation Recreational Warrants Interest Principal Rate Total (Memorandum Interest Only) $ 15,000 5.25% $ 13,362 $ 28,362 15,000 5.25 12,462 27,462 20,000 5.25 11,675 31,675 20,000 5.25 10,625 30,625 20,000 5.25 9,575 29,575 20,000 5.5 8,525 28,525 25,000 5.5 7,425 32,425 25,000 5.5 6,050 31,050 25,000 5.5 4,675 29,675 30,000 5.5 3;300 33,300 30,000 5.5 1,650 31,650 : $245,000 $ 89,324 $334,324 General Obligation Public Total General Obligation Improvement Bonds Principal and Interest Total Total Interest (Memorandum Total Total (Memorandum Principal Rate Interest Only) Principal Interest Only) $ 40,000 5.8% $ 19,840 $ 59,840 $ 145,000 $ 96,817 $ 241,817 40,000 5.8 17,520 57,520 215,000 88,297 303,297 40,000 5.8 15,200 55,200 150,000 75,265 225,265 40,000 5.8 12,880 52,880 155,000 66,323 221,323 40,000 5.8 10,560 50,560 155,000 57,180 212,180 40,000 5.8 8,240 48,240 165,000 47,941 212,941 40,000 5.8 5,920 45,920 170,000 37,958 207,958 40,000 5.9 3,580 43,580 170,000 27,682 197,682 40,000 6 1,200 41,200 170,000 17,350 187,350 - - - - 135,000 8,171 143,171 - - - - 30,000 1,650 31,650 $360,000 $ 94,940 $454,940 $1,660,000 $524,634 $2,184,634 PARKER, FICKLING & JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 26 CITY OF FAIRHOPE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1980 NOTE 14 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 $ 25,000 Crime and employee dishonesty $ 25,000 NOTE 15 PROPERTY, PLANT AND EQUIPMENT - PROPRIETARY FUNDS Changes during the year in property, plant and equipment were as follows: Natural Water and Electric Gas Wastewater Fund Fund Fund Balance, October 1, 1979 $2,275,593 $1,522,450 $4,417,883 Additions: Self constructed: Labor 25,108 16,238 14,353 Material 250,329 9,291 48,102 Contracted engineering 7,017 21,076 Vehicles and equipment purchases 68,402 2,643 4,675 Equipment retired (24,836) (5,715) (2,596) BALANCE, SEPTEMBER 30, 1980 $2,601,613 $1,544,907 $4,503,493 PARKER, FICKLING i JORDAN. CERTIFIED PUBLIC ACCOUNTANTS. P.C. 27 CITY OF FAIRHOPE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1980 NOTE 16 INFORMATION REQUIRED BY BOND INDENTURES Natural Water and Electric Gas Wastewater Fund Fund Fund A. The following information provided by City employees: Number of customers 3,422 4,120 3,807 Number of metered customers 3,422 4,120 3,807 Number of unmetered customers -0- -0- -0- Number of wastewater connections 2,741 B. All requirements of the respective bond indentures appeared to have been com- plied with by the City. NOTE 17 SALARIES - PROPRIETARY FUNDS The following is a summary of employees' salaries by Utility Fund for the years ended September 30, 1980 and 1979: Natural Water and Electric Gas Wastewater Fund Fund Fund Year ended September 30, 1980: Total salaries $224,209 $128,544 $155,007 Less: Salaries capitalized for plant additions (25,108) (16,238) (14,353) Salaries charged to hurricane expense (18,758) (589) (300) Amount of salaries charged to operations $180,343 $111,717 $140,354 Year ended September 30, 1979: Total salaries $197,787 $113,421 $132,636 Less: Salaries capitalized for plant additions (18,460) (9,860) (14,469) Salaries charged to hurricane expense (21,950) (444) (971) Amount of salaries charged to operations $157,377 $103,117 $117,196 PARKER, FICKLING 6 JORDAN, CERTIFIED PUBLIC ACCOUNTANTS. P.C. 28 CITY OF FAIRHOPE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1980 NOTE 18 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 Wastewater 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 19 DEPRECIATION The rates used in recording depreciation of plant and equipment of the utility funds are annual straight line rates as follows: Electric system 3.0% Natural gas system 2.5%6 Water and wastewater system 2.5% Vehicles and equipment 12.5% to 16.7% NOTE 20 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 estimated the cost of repairs to total approximately $430,000. 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 repairs will qualify for reimbursement. All repair costs were recorded in the period incurred and Federal reimburse- ment 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 uninsured 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 reimbursment accrued in the amounts approved on the assistance commitments. FEMA is reimbursing the City for direct costs and some overhead expenses. PARKER, FICKLING d JORDAN, CERTIFIED PUBLIC ACCOUNTANTS. P.C. M CITY OF FAIRHOPE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1980 NOTE 21 LITIGATION At September 30, 1980, the City of Fairhope was a defendant in three lawsuits. On suit was brought by Hilda Claire Oaks naming as defendants the City of Fairhope, along with the Board of Trustees of the Fairhope Public Library and ten individuals. Ms. Oaks was the former director/librarian of the Fairhope Public Library. Her suit alleges sex discrimination and violation of plaintiff's first and fourteenth amendment rights under Federal law and, under state law, alleges defamation, civil conspiracy and breach of con- tract. Ms. Oaks' suit seeks compensatory damages of $100,000 and punitive damages of $200.000. The suit also seeks a declaratory judgement that the City of Fairhope violated the non-discrimination provisions of the Federal Revenue Sharing Act. Legal counsel for the City of Fairhope was of the opinion that the allegations did not involve Revenue Sharing Funds. On October 15, 1980, a U. S. District judge dismissed the plain- tiff's claims for alleged violation of liberty and property made under the fourteenth amendment as well as her state law claim for breach of contract. All other claims remain before the court for decision. Two other small suits brought against the City of Fairhope involve a vehicle accident and a personal injury while jogging, both of which are being defended for the. City of Fairhope by its insurance carrier. The Mayor and City Council are confident of a favorable outcome on all three suits. NOTE 22 FINANCIAL STATEMENTS NOT INCLUDED The financial statements of the City of Fairhope Public Library Board are not included in this report. The financial statements of the Public Library Board are being submitted under separate cover. 0 PARKER, FICKLING & JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 30 SUPPORTING SCHEDULES ADDITIONAL FINANCIAL INDIVIDUAL FUND AND FINANCIAL STATEMENTS PARKER, FICKLING d JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 31 CITY OF FAIRHOPE, ALABAMA GENERAL FUND BALANCE SHEET SEPTEMBER 30, 1980 AND 1979 ASSETS 1980 1979 CASH On hand $ 150 $ 200 In First National Bank of Baldwin County 222,952 374,559 In Merchants National Bank of Mobile 30,414 6,248 Total 253,516 381,007 RECEIVABLES Street improvement assessments 29,201 35,493 Federal Disaster Assistance Administration 28,631 19,418 Federal Emergency Management Agency 180,933 32,808 Federal Aviation Administration 40,733 50,683 ' State of Alabama 6,879 - Miscellaneous receivables 5,355 7,150 Due from other funds of the City of Fairhope: 1977-1978 Public Improvement Assessment Fund 118,095 96,041 Electric Fund 122,798 115,677 Natural Gas Fund 14,483 23,860 Water and Wastewater Fund 5,990 59,555 Recreation Fund 80 1,224 Allowance for doubtful accounts (1,355) (1,355) Total 551,823 440,554 CONSTRUCTION WORK IN PROGRESS Sewer line construction 212,744 - TOTAL ASSETS $1,018,083 $ 821,561 LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable, trade $ 72,777 $ 69,400 Contracts payable 71,281 73,878 Payroll taxes payable 8,648 17,330 Employees' retirement payable 8,200 7,489 Sundry payables 582 708 General obligation note payable - First National Bank of Baldwin County 146,001 - Note payable, McGowin Trusts 49,466 - TOTAL LIABILITIES 356,955 168,805 FUND BALANCE 661,128 652,756 TOTAL LIABILITIES AND FUND BALANCE $1,018,083 $ 821,561 The notes to the financial statements are an integral part of this statement. PARKER, FICKLING & JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. J// 32 CITY OF FAIRHOPE, ALABAMA GENERAL FUND STATEMENT OF CHANGES IN FUND BALANCE FOR THE YEARS ENDED SEPTEMBER 30, 1980 AND L979 1980 1979 FUND BALANCE AT BEGINNING OF YEAR $ 652,756 $ 466,869 General Fund revenues 2,075,502 1,509,599 General Fund expenditures 2,067,130 1,484,160 8,372 25,439 Proceeds of general obligation various purpose warrants, dated December 1, 1978 310,300 Less amount expended during year as General Fund expenditures (149,852) — 160,448 FUND BALANCE AT END OF YEAR $ 661,128 $ 652,756 The notes to the financial statements are an integral part of this statement. PARKER, FICKLING 9 JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. CITY OF FAIRHOPE, ALABAMA GENERAL FUND STATEMENT OF REVENUES WITH FISCAL YEAR ENDED SEPTEMBER 30, 1980 BUDGET FOR THE YEARS ENDED SEPTEMBER 30, 1980 AND 1979 1980 1979 Over Under) Actual Budget Budget Actual LOCAL TAXES Real estate $ 165,156 $ 164,193. $ 963 $ 125,840 Automobile tags and tax 36,286 40,000 (3,714) 39.,943 Beer tax 30,396 26,000 4,396 25,671 Liquor tax 18,812 11,000 7,812 12,422 Dog tax 467 200 267 186 Total 251,117 241,393 9,724 _ 204,062 LICENSES AND PERMITS Business licenses 115,585 110,000 5,585 101,059 Beer and liquor licenses 1,106 700 406 730 Job license fees 2,755 2,000 755 2,175 Building permits 9,171 9,000 171 10,777 Rezoning permits 907 1,000 (93) 892 Insurance company franchise 36,232 33,000 3,232 32,379 Cable T. V. franchise 1,591 - 1,591 - Total 167,347 155,700 11,647 148,012 FINES AND FORFEITURES 64,537 70,000 (5,463) 74,001 STATE OF ALABAMA State gasoline tax 29,993 30,000 (7) 31,553 Share of state liquor profits 15,809 17,000 (1,191) 14,801 Financial institution excise tax 30,546 22,000 8,546 21,068 Motor vehicle licenses 1,754 1,000 - 754 1,755 Oil production privilege tax 230 85 145 106 Grant, LEPA - - - 1,828 Grant, airport project 6,879 - 6,879 - Grant, parking revolving - - - 200 Total 85,211 70,085 15,126 71,311 UNITED STATES GOVERNMENT Federal Aviation Administration 101,951 - 101,951 50,683 Federal Emergency Management Agency 486,166 - 486,166 32,808 Federal Disaster Assistance Administration 9,213 - 9,213 171,443 Total 597,330 - 597,330 254,934 PARKER, FICKLING 3 JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.0 33 1980 1979 Over Under Actual Budget Budget Actual INTEREST AND RENTS Interest - bank deposits $ 19,316 $ 16,000 $ 3,316 $ 16,296 Interest - street assessments 1,766 2,200 (434) 2,466 Municipal airport lease 6,371 6,500 (129) 7,890 Municipal pier lease 3,914 3,700 214 3,809 Fishing dock stall rentals 3,890 5,400 (1,510) 3,174 Other rents 1,613 1,420 193 1,365 Total 36,870 35,220 1,650 35,000 CHARGES FOR SERVICES Sanitation collection 103,955 100,000 3,955 99,366 Dog pound fees 290 200 90 213 Total 104,245 100,200 4,045 99,579 OTHER REVENUES Beach revenue 22,036 21,000 1,036 21,619 Donations: Fairhope Single Tax Colony 40,000 - 40,000 34,539 Baldwin Square Shopping Center 8,900 - 8,900 Sale of fixed assets - - - 14,742 Grant, South Alabama Regional Planning Commission 2,424 4,100 (1,676) 4,424 Qualifying fees 750 - 750 - Insurance claims 22,601 - 22,601 - Sales of materials and miscellaneous income 17,291 8,200 9,091 7,524 Total 114,002 33,300 80,702 82,848 LOAN PROCEEDS DISBURSED 70,000 - 70,000 149,852 TRANSFERS FROM UTILILTY FUNDS Electric Fund 218,000 218,000 - 205,000 Natural Gas Fund 218,000 218,000 - 185,000 Natural Gas Fund - street - resurfacing 128,843 - 128,843 - Water and Wastewater Fund 20,000 20,000 - - Total 584,843 456,000 128,843 390,000 TOTAL REVENUE $2,075,502. $1,161,898 $ 913,604 $1,509,599 The notes to the financial statements are an integral part of this statement. PARKER, FICKLING 8 JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 34 CITY OF FAIRHOPE, ALABAMA GENERAL FUND STATEMENT OF EXPENDITURES WITH FISCAL YEAR ENDED SEPTEMBER 30, 1980 BUDGET FOR THE YEARS ENDED SEPTEMBER 30, 1980 AND 1979 1980 1979 Over Under Actual Budget Budget Actual GENERAL GOVERNMENT Salaries: Mayor and council $ 8,400 $ 8,400 $ - $ 9,100 City clerk and assistants 17,975 29,900 (11,925) 14,338 Building inspector, janitor and mechanics 27,633 19,150 8,483 17,166 City attorney 3,000 3,900 (900) 3,000 City judge 5,108 4,800 308 4,330 Convention, travel and continuing eduation 8,087 3,900 4,187 4,291 Audit fees 2,950 4,000 (1,050) 4,000 Accounting services 3,000 2,700 300 2,750 Legal fees 7,352 3,000 4,352 28,442 General supplies and maintenance 7,718 12,600 (4,882) 11,858 Office supplies and postage 8,199 6,600 1,599 6,444 Telephone 73875 5,500 2,375 5,742 Computer service 1,390 1,200 190 1,163 Publications in newspaper 1,452 1,500 (48) 2,088 Dues and memberships 5,048 5,000 48 43863 Insurance, casualty 285368 27,000 13368 27,674 Colony rent 922 13000 (78) 922 Payroll taxes 3,330 3,536 (206) 2,467 Employees' retirement 2,963 6,270 (3,307) 2,380 Employees' medical insurance 7,124 6,494 630 4,994 Municipal airport operating expenses 7,346 23500 4,846, 3,766 Property reappraisal program 21,000 - 21,000 - Engineering fees 750 - 750 305 Professional services 1,369 - 13369 3,806 Employees' Christmas bonus 3,000 2,775 225 - Miscellaneous 959 1,500 (541) 1,529 Shuttle bus expense 3,391 500 2,891 1,602 Freight 268 300 (32) 238 Musak 300 300 - 300 Warrant issue costs - - - 14,191 Maintenance - Adult Recreation Center 175 - 175 492 Maintenance - Fishermans Wharf 3,448 - 3,448 100 Maintenance - Health Center 180 - 180 - Maintenance - Civic Center 151 - 151 - Election expense 3,094 - 3,094 - Municipal code 1,500 - 1,500 - Trustee fees 1,403 - 1,403 - Fireworks donation 500 - 500 - Capital purchases 5,540 - 5,540 5,881 Total $ 212,268 $ 164,325 $ 47,943 $ 190,222 - continued) The notes to the financial statements are an integral part of this statement. PARKER. FICKLING A JORDAN. CERTIFIED PUBLIC ACCOUNTANTS, P.C. 35 CITY OF FAIRHOPE, ALABAMA GENERAL FUND STATEMENT OF EXPENDITURES WITH FISCAL YEAR ENDED SEPTEMBER 30, 1980 BUDGET FOR THE YEARS ENDED SEPTEMBER 30, 1980 AND 1979 1980 1979 Ov(Under) er Actual Budget Budget Actual BEACH DEPARTMENT Salaries $ 7,611 $ 7,000 $ 611 $ 7,344 Beach repairs and maintenance 5,676 3,000 2,676 3,495 Beach decals 2,130 - 2,130 1,320 Payroll taxes 467 429 38 456 Transfer to Recreation Fund - - - 3,000 Total 15,884 10,429 5,455 15,615 SANITATION DEPARTMENT Sanitation contract 83,888 72,000 11,888 73,597 Landfill charges 7,533 - 7,533 - Rent 3,400 - 3,400 - Capital purchases 1,352 - 1,352 38,657 Total 96,173 72,000 24,173 112,254 POLICE DEPARTMENT Salaries 206,176 195,000 11,176 178,473 Gasoline and oil 16,803 14,000 2,803 14,335 Auto repairs and maintenance 7,541 6,500 1,041 6,644 Maintenance of radio equipment 935 1,000 (65) 512 Jail and police supplies 5,740 3,700 2,040 3,831 Uniforms 2,399 2,500 (101) 2,019 Training 121 600 (479) 803 Police annuity and driver education funds 3,973 4,200 (227) 4,216 Prisoners' meals 1,120 850 270 890 Payroll taxes 12,639 11,954 685 11,262 Employees' retirement 8,101 22,620 (14,519) 13,272 Employees' medical insurance 19,893 15,361 4,532 12,095 NCIC data system 2,400 2,400 - 3,064 Liability insurance 3,738 3,105 633 4,140 Miscellaneous 181 500 (319) 464 Repairs and general maintenance 5,585 1,000 4,585 2,839 Capital purchases 15,993 13,000 2,993 9,663 Total 313,338 298,290 15,048 268,522 (continued) The notes to the financial statements are an integral part of this statement. PARKER, FICKLING & JORDAN. CERTIFIED PUBLIC ACCOUNTANTS, P.C. 36 CITY OF FAIRHOPE, ALABAMA GENERAL FUND STATEMENT OF EXPENDITURES WITH FISCAL YEAR ENDED SEPTEMBER 30, 1980 BUDGET FOR THE YEARS ENDED SEPTEMBER 30, 1980 AND 1979 1980 1979 Over (Under) Actual Budget Budget Actual FIRE DEPARTMENT Salaries $ 59,079 $ 49,320 $ 9,759 $ 46,320 Gasoline and oil 2,155 1,200 955 1,204 Supplies 7,258 4,500 2,758 4,633 Vehicle and equipment repairs 9,815 4,000 5,815 3,322 Repairs and general maintenance 2,452 2,452 443 Training 2,025 2,400 (375) 2,310 Insurance - Volunteer Fire Dept. 675 700 (25) 675 Liability insurance 1,576 1,576 Miscellaneous 2 100 (98) 96 Payroll taxes 3,622 3,023 599 2,922 Employees' retirement 3,810 5,721 (1,911) 1,876 Employees' medical insurance 4,476 4,661 (185) 3,670 Capital purchases 5,920 4,000 1,920 336 Total 102,865 79,625 23,240 67,807 STREET DEPARTMENT Salaries 178,618 160,000 18,618 153,589 Gasoline and oil 31,173 20,000 11,173 22,900 Repairs and maintenance - Vehicles and equipment 67,126 34,000 33,126 42,238 Materials and supplies 36,667 47,000 (10,333) 35,495 Equipment rental - 2,000 (2,000) 6,167 Uniforms 705 600 105 665 Payroll taxes 10,949 9,808 1,141 93707 Employees' retirement 11,389 18,560 (7,171) 10,472 Employees' medical insurance 16,121 16,784 (663) 13,216 Capital purchases 33,344 25,000 8,344 87,566 Street resurfacing 128,843 - 128,843 - Morphy Avenue street project 54,678 - 54,678 - Total 569,613 333,752 235,861 382,015 (continued) The notes to the financial statements are an integral part of this statement. PARKER, FICKLING 6 JORDAN. CERTIFIED PUBLIC ACCOUNTANTS. P.C. 37 CITY OF FAIRHOPE, ALABAMA GENERAL FUND STATEMENT OF EXPENDITURES WITH FISCAL YEAR ENDED SEPTEMBER 30, 1980 BUDGET FOR THE YEARS ENDED SEPTEMBER 30, 1980 AND 1979 STAFF AGENCIES AND OTHER: Staff agencies: Planning Board Industrial Board Other Fairhope Public Library: Monthly transfer Salaries and other expenses Baldwin County Mental Health Baldwin County Civil Defense Total DEBT SERVICE General obligation warrants Interest Total OTHER EXPENDITURES Municipal Airport: Runway strengthening project Land acquisition and additional improvements Transfer to Civic Center Fund Extraordinary losses: Flood damage repair cost Hurricane damage repair cost Total TOTAL EXPENDITURES 1980 1979 Over Under Actual Budget Budget Actual $ 197 $ 250 $ (53) $ 207 - - - 75 6,403 6,400 3 12,085 745 - 745 8,119 2,738 - 2,738 4,200 144 144 - 144 10,227 6,794 3,433 24,830 40,000 40,000 - 40,000 49,476 49,368 108 45,184 89,476 89,368 108 85,184 193910 - 19,910 50,683 151,267 - 1513267 - 50,000 .100,000 (50,000) - 11,517 - 11,517 2623198 424,592 - 424,592 24,830 6573286 100,000 557,286 337,711 $2,06� $1,15�4,55833 $ 9112,547 $1,484,160 The notes -to the financial statements are an integral part of this statement. PARKER, FICKLING & JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 38 CITY OF FAIRHOPE, ALABAMA SPECIAL REVENUE FUND FEDERAL REVENUE SHARING FUND BALANCE SHEET SEPTEMBER 30, 1980 AND 1979 ASSETS CASH In First National Bank of Baldwin County TOTAL ASSETS LIABILITIES AND FUND BALANCE LIABILITIES FUND BALANCE TOTAL LIABILITIES AND FUND BALANCE 1980 1979 $ 1 $ - $ 1 $ - 1 - The notes to the financial statements are an integral part of this statement. PARKER, FICKLING 8 JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 39 CITY OF FAIRHOPE, ALABAMA FEDERAL REVENUE SHARING FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE WITH FISCAL YEAR ENDED SEPTEMBER 30, 1980 BUDGET FOR THE YEARS ENDED SEPTEMBER 30, 1980 AND 1979• REVENUE Federal Entitlement - U. S. Revenue Sharing EXPENDITURES Transfers to the Fairhope Public Library Board EXCESS REVENUE OVER (UNDER) EXPENDITURES FUND BALANCE AT BEGINNING OF YEAR FUND BALANCE AT END OF YEAR 1980 1979 Over (Under) Actual Budget Budget Actual $ 51,698 $ 51,700 $ (2) $ 46,015 51,697 51,700 (3) 46,015 1 - 1 - $ 1 $ - $ 1 $ - The notes to the financial statements are an integral part of this statement. PARKER, FICKLING i JORDAN, CERTIFIED PUBLIC ACCOUNTANTS. P.C. 40 CITY OF FAIRHOPE, ALABAMA SPECIAL REVENUE FUND CIVIC CENTER FUND BALANCE SHEET SEPTEMBER 30, 1980 ASSETS CASH Cash in First National Bank of Baldwin County, savings account $ 53,786 TOTAL ASSETS $ 53,786 LIABILITIES AND FUND BALANCE LIABILITIES FUND BALANCE $ 53,786 IL TOTAL LIABILITIES AND FUND BALANCE $ 53,786 The notes to the financial statements are an integral part of this statement. PARKER, FICKLING & JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 41 CITY OF FAIRHOPE, ALABAMA CIVIC CENTER FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGE IN FUND BALANCE WITH FISCAL YEAR ENDED SEPTEMBER 30, 1980 BUDGET FOR THE YEAR ENDED SEPTEMBER 30, 1980 1980 Over (Under) Actual Budget Budget REVENUE Transfers from General Fund of the City of Fairhope $ 50,000 $100,000 $(50,000) Interest earned 3,786 - 3,786 Total revenue 53,786 100,000 (46,214) EXPENDITURES - - - EXCESS REVENUE OVER EXPENDITURES 53,786 100,000 (46,214) FUND BALANCE AT BEGINNING OF YEAR - ' FUND BALANCE AT END OF YEAR $ 53,786 $100;000 $(46,214) The notes to the financial statements are an integral part of this statement. PARKER, FICKLING 8 JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 42 CITY OF FAIRHOPE, ALABAMA SPECIAL REVENUE FUND RECREATION OPERATING FUND BALANCE SHEET SEPTEMBER 30,.1980 ASSETS 1980 1979 Cash On hand $ - $ 50 In First National Bank of Baldwin County 16,789 16,274 Accounts receivable 491 491 Cigarette stamp inventory - 1,277 TOTAL ASSETS $ 17,280 $ 18,092 LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable, trade 517 2,539 Payroll taxes payable 142 579 Due to City of Fairhope - General Fund 80 1,224 TOTAL LIABILITIES 739 4,342 FUND BALANCE (DEFICIT) 16,541 13,750 TOTAL LIABILITIES AND FUND BALANCE $ 17,280 $ 18,092 The notes to the financial statements are an integral part of this statement. PARKER, FICKLING d JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 43 CITY OF FAIRHOPE, ALABAMA SPECIAL REVENUE FUND RECREATION OPERATING FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE WITH YEAR ENDED SEPTEMBER 30, 1980 BUDGET FOR THE YEARS ENDED SEPTEMBER 30, 1980 AND 1979 REVENUES Cigarette tax Beer tax Recreation programs Parking at stadium Miscellaneous Transfer from General Fund Interest earned Rental football stadium Total revenues EXPENDITURES Salaries Payroll taxes Athletic equipment Repairs and maintenance Supplies Telephone and utilities Cost of cigarette stamps Gasoline and oil Audit Accounting services Adult and tourist recreation program Tennis director Young Street art program Young Street assistants Colony rent Rental Football parking attendants Miscellaneous Insurance Civic Center Capital purchases Clean up crews Adult program director Directors' expenses Transfers to Recreation 1980 1979 Over (Under) Actual Budget Budget Actual $ 20,830 $ 24,150 $ (3,320) $ 22,486 30,388 22,130 8,258 26,366 840 5,060 (4,220) 2,060 4,347 4,347 831 - 11 - 3,000 577 577 1,000 1,000 57,982 51,340 6,642 54,754 12,958 16,100 (3,142) 10,933 794 1,050 (256) 693 1,377 1,100 277 947 13,422 6,820 6,602 8,455 493 3,600 (3,107) 3,784 2,438 2,200 238 2,098 3,869 2,300 1,569 1,607 1,025 550 475 436 350 300 50 500 600 600 - 550 2,700 900 2,249 1,580 1,400 108 349 150 825 604 2,700 900 300 2,400 3,355 560 320 375 4,000 Improvement Fund 7,000 TOTAL EXPENDITURES (carried forward) 55,191 49,530 PARKER, FICKLING 9 JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. - (300) (2,400) (1,106) 1,020 1,400 (212) (26) (4,000) 150 825 604 7,000 5,661 3,255 825 300 225 2,236 510 494 282 341 52 38,523 44 CITY OF FAIRHOPE, ALABAMA SPECIAL REVENUE FUND RECREATION OPERATING FUND STATEMENT OF REVENUE, EXPENDITURES -AND CHANGES IN FUND BALANCE WITH YEAR ENDED SEPTEMBER 30, 1980 BUDGET FOR THE YEARS ENDED SEPTEMBER 30, 1980 AND 1979 1980 Over (Under) Actual Budget Budget TOTAL EXPENDITURES (brought forward)$ 55,191 $ 49,530 $ 5,661 1979 Actual $ 38,523 EXCESS REVENUES OVER EXPENDITURES 2,791 1,810 981 16,231 FUND BALANCE (DEFICIT) AT BEGINNING OF YEAR 13,750 13,750 - (2,481) FUND BALANCE AT END OF YEAR $ 16,541 $ 15,560 $ 981 $ 13,750 The notes to the financial statements are an integral part of this statement. PARKER, FICKLING & JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 45 CITY OF FAIRHOPE, ALABAMA SPECIAL REVENUE FUND RECREATION CAPITAL IMPROVEMENT FUND BALANCE SHEET SEPTEMBER 30, 1980 AND 1979 ASSETS 1980 1979 CASH IN FIRST NATIONAL BANK OF BALDWIN COUNTY: Recreation Project Improvement - checking $ 3,252 $ 26,367 Recreation Project Improvement - savings 12,156 11,532 Sinking Fund, general obligation recreational warrants 7,362 5,595 Total cash 22,770 43,494 RECEIVABLE - Fairhope High School 2,449 2,449 TOTAL ASSETS $ 25,219 $ 45,943 LIABILITIES AND FUND BALANCE LIABILITIES Accounts payble, trade $ - $ 5,945 FUND BALANCE 25,219 39,998 TOTAL LIABILITIES AND FUND BALANCE $ 25,219 $ 45,943 The notes to the financial statements are an integral part of this statement. PARKER, FICKLING & JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 46 CITY OF FAIRHOPE, ALABAMA SPECIAL REVENUE FUND RECREATION CAPITAL IMPROVEMENT FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE WITH YEAR ENDED SEPTEMBER 30, 1980 BUDGET FOR THE YEARS ENDED SEPTEMBER 30, 1980 AND 1979 REVENUES Cigarette tax Beer tax Parking at football stadium Interest earned Rental - stadium Grant, State of Alabama Donated salaries - other Funds of City Donated services Transfer from Recreation operating Total revenue EXPENDITURES Debt service, principal Debt service, interest Stimpson Field project Miscellaneous Improvements - Civic Center Total expenditures EXCESS REVENUE OVER (UNDER) EXPENDITURES FUND BALANCE AT BEGINNING OF YEAR FUND BALANCE AT END OF YEAR 1980 1979 Over Under Actual Budget Budget Actual $ 12,466 $ 13,000 $ (534) $ 13,230 20,259 17,000 3,259 17,577 1,255 19,108 7,000 60,088 15,000 14,028 45,839 74,867 (14,779) 39,998 $ 25,219 30,000 15,000 14,263 29,263 737 39,998 $ 40,735 1,255 19,108 7,000 30,088 (235) 45,839 45,604 (15,516) $ (15,516) 821 1,920 400 31,960 9,002 10,251 85,161 15,000 15,400 79,312 14 1,486 111,212 (26,051) 66,049 $ 39,998 The notes to the financial statements are an integral part of this statement. PARKER, FICKLING & JORDAN. CERTIFIED PUBLIC ACCOUNTANTS, P.C. 47 CITY.OF FAIRHOPE, ALABAMA SPECIAL ASSESSMENT FUND 1977 - 1978 PUBLIC IMPROVEMENT ASSESSMENT FUND BALANCE SHEET SEPTEMBER 30, 1980 AND 1979 ASSETS 1980 1979 CASH In First National Bank of Baldwin County: Checking account $ 3,472 $ 2,053 Savings account 16,999 41,841 Certificate of deposit 177,775 100,000 In Merchants National Bank of Mobile: Bond sinking funds 62,358 45,631 Total 260,604 189,525 RECEIVABLES 1977 - 1978 assessments 443,838 304,151 Accrued interest on certificate of deposit 3,156 2,164 Total 446,994 306,315 FIXED ASSETS Construction work in progress - 235,995 TOTAL ASSETS $ 707,598 $ 731,835 LIABILITIES AND FUND BALANCE LIABILITIES Contracts payable $ - $ 24,772 Due to City of Fairhope General Fund 118,095 96,041 General obligation public improvement bonds payable 360,000 400,000 General obligation various purpose warrants payable 224,700 224,700 TOTAL LIABILITIES 702,795 745,513 FUND BALANCE (DEFICIT) 4,803 (13,678) TOTAL LIABILITIES AND FUND BALANCE $ 707,598 $ 731,835 The notes to the financial statements are, an integral part of this statement. PARKER, FICKLING & JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 48 CITY OF FAIRHOPE, ALABAMA SPECIAL ASSESSMENT FUND 1977 - 1978 PUBLIC IMPROVEMENT ASSESSMENT FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE WITH FISCAL YEAR ENDED SEPTEMBER 30, 1980 BUDGET FOR THE YEARS ENDED SEPTEMBER 30, 1980 AND 1979 REVENUE Interest earned: Assessments Bank deposits Total revenue EXPENDITURES Debt service, interest EXCESS REVENUE OVER (UNDER) EXPENDITURES FUND BALANCE (DEFICIT) AT BEGINNING OF YEAR ADD: 1977 - 1978 Assessment roll LESS: Transfer of completed street construction to General Fixed Assets Transfer of completed water and wastewater improvements to Water and Wastewater Fund FUND BALANCE (DEFICIT) AT END OF YEAR 1980 1979 Over (Under Actual Budget Budget Actual $ 24,439 $ 25,000 $ (561) $ 477 12,450 13,000 (550) 5,679 36,889 38,000 (1,111) 6,156 35,732 35,732 - 19,834 1,157 (13,678) 257,613 2451092 240,289 2,268 (13,678) 11,410) (1,111) (13,678) 16,000 257,613 256,502 240,289 240,289 - 240,289 416,150 418,472 242,034 190,116 432,150 $ 4,803 $ (11,410) $ 16,213 $ (13,678) The notes to the financial statements are an integral part of this statement. PARKER, FICKLING 8 JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. CITY OF FAIRHOPE, ALABAMA ELECTRIC FUND BALANCE SHEET SEPTEMBER 30, 1980 AND 1979 ASSETS 1980 1979 CURRENT ASSETS Cash in First National Bank of Baldwin County: Operating account $ 257,051 $ 234,597 Passbook savings accounts 92,502 67,165 Certificate of deposit 140,000 146,389 Sinking fund - general obligation electric warrants 13,433 12,252 502,986 460,403 Receivables: Utility customers 271,599 279,190 Federal Disaster Assistance Administration 22,135 12,835 Federal Emergency Management Agency - 129,042 Accrued interest 2,565 3,088 Miscellaneous 1,816 2,484 Allowance for uncollectible accounts (19,703) (12,630) 278,412 414,009 Materials inventories 80,629 143,352 Prepaid operating expenses 7,690 7,700 Total current assets 869,717 1,025,464 PROPERTY, PLANT AND EQUIPMENT (at cost) Electric plant and distribution system 2,444,974 2,162,520 Vehicles and equipment 156,639 113,073 2,601,613 2,275,593 Accumulated depreciation (761,647) (706,035) Total property, plant and equipment - net 1,839,966 1,569,558 OTHER ASSETS Unamortized debt issue cost 1,066 1,250 Accounts receivable, City of Fairhope, Water and Wastewater Fund - 13,195 Total other assets 1,066 14,445 TOTAL ASSETS $2,710,749 $2,609,467 PARKER, FICKLING & JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 49 LIABILITIES AND CAPITALIZATION 1980 1979 CURRENT LIABILITIES Accounts payable, trade $ 310,840 $ 298,840 Accrued expenses and taxes: Payroll taxes 3,202 5,687 Utility taxes 17,416 13,827 Employees' retirement contribution 2,742 2,605 Interest 4,186 4,576 Salaries - 9,991 Insurance withholding 112 145 27,658 36,831 Customer deposits 210,694 188,531 General obligation electric warrants 32,000 30,000 Total current liabilities 581,192 554,202 NON CURRENT LIABILITIES General obligation electric warrants 290,000 322,000 Accounts payable, City of Fairhope: General Fund 122,798 115,677 Natural Gas Fund 83,758 90,629 Water and Wastewater Fund 11,626 - Total non current liabilities 508,182 528,306 Total liabilities 1,089,374 1,082,508 CAPITALIZATION Contributions in aid of construction 84,233 47,823 Retained earnings 1,537,142 1,479,136 Total capitalization 1,621,375 1,526,959 TOTAL LIABILITIES AND CAPITALIZATION $2,710,749 $2,609,467 The notes to the financial statements are an integral part of this statement. PARKER, FICKLING R JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. CITY OF FAIRHOPE, ALABAMA ELECTRIC FUND STATEMENT OF INCOME AND RETAINED EARNINGS WITH YEAR ENDED SEPTEMBER 30, 1980 BUDGET FOR THE YEARS ENDED SEPTEMBER 30, 1980 AND 1979 1980 Over Under Actual Budget Budget 1979 Actual OPERATING REVENUE Sales of electric energy $2,439,541 $2,340,000 $ 99,541 $2,212,570 Other charges, sales and receipts 43,189 32,800 10,389 27,802 Total operating revenues 2,482,730 2,372,800 109,930 2,240,372 OPERATING EXPENSES Purchased power Operating, maintenance and administrative salaries Audit fees Accounting services Bad debts Bond issue expense Christmas bonuses Computer services Electric energy furnished other divisions of the City Dues and memberships Engineering services Gasoline and oil Insurance - casualty Insurance - employees' group Legal fees Plant maintenance and operating supplies Maintenance vehicles and equipment Miscellaneous Office supplies and postage Payroll taxes Professional services Employees' retirement Rental Telephone Travel, training and school Uniforms Total operating expense EARNINGS FROM OPERATIONS BEFORE DEPRECIATION Depreciation 1,779,169 1,646,000 133,169 1,516,452 180,343 183,600 (3,257) 157,377 2,100 3,700 (1,600) 2,600 2,400 1,800 600 2,200 7,073 1,000 6,073 8,154 185 - 185 185 700 650 50 5,350 6,352 5,400 952 5,706 23,288 17,000 6,288 19,047 9,877 8,400 1,477 7,934 13,299 10,500 2,799 9,989 9,362 5,700 3,662 7,368 22,286 18,000 4,286 21,394 13,289 13,000 289 10,092 - - 76 21,585• 22,000- (415) 11,524 8,163 10,000 (1,837) 14,667 519 1,000 (481) 593 6,163 9,000 (2,837) 6,989 13,930 13,000 930 11,482 120 - 120 120 13,393 19,800 (6,407) 8,400 607 1,500 (893) 8,175 3,552 3,500 52 3,503 2,387 2,100 287 1,723 562 400 162 448 2,140,704 1,997,050 143,654 1,841,548 342,026 375,750 (33,724) 398,824 80,448 58,000 22,448 71,051 EARNINGS FROM OPERATIONS (carried forward) 261,578 317,750 (56,172) 327,773 PARKER, FICKLING 8 JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 50 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 Red Cross - reimbursement for hurricane expenses Total other (deductions) income NET INCOME Retained earnings at beginning of year RETAINED EARNINGS AT END OF YEAR 1980 1979 Over Under) Actual Budget Budget Acutal $ 261,578 $ 317,750 $ (56,172) $ 327,773 (17,985) (17,900) (85) (19,398) 21,599 21,599 17,226 (218,000) (218,000) - (205,000) (13,535) 13,535 (15,844) 9,301 9,301 12,835 (67,490) 67,490 (123,261) 77,882 77,882 129,042 4,656 4,656 (203,572) (235,900) (32,328) (204,400) 58,006 81,850 (23,844) 123,373 1,479,136 1,479,136 - 1,355,763 $1,537,142 $1,560,986 $ (23,844) $1,479,136 The notes to the financial statements are an integral part of this statement. PARKER, FICKLING 8 JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. CITY OF FAIRHOPE, ALABAMA NATURAL GAS FUND BALANCE SHEET SEPTEMBER 30, 1980 AND 1979 ASSETS CURRENT ASSETS Cash in First National Bank of Baldwin County: Operating accounts Savings account Cash in Merchants National Bank of Mobile, bond sinking fund Receivables Accrued interest Bulk gas customer - Town of Daphne Federal Disaster Assistance Administration Federal Emergency Management Agency Miscellaneous Allowance for doubtful accounts Materials inventories Prepaid operating expenses Total current assets SINKING FUNDS Merchants National Bank of Mobile, first mortgage revenue bonds, 1961 series, reserve and replacement funds PROPERTY, PLANT AND EQUIPMENT (at cost) Natural gas plant and distribution system Vehicles and equipment Accumulated depreciation Total property, plant and equipment - net 1980 $ 176,907 92,656 1979 $ 76,323 44,700 41,050 314,263 117,373 5,146 26,036 5,091 1,571 8,051 (1,860) 44,035 47,515 9,821 415,634 8,773 5,091 8,547 3,161 (870) 24,702 41,616 9,552 193,243 153,930 155,068 1,432,898 1,407,369 112,009 115,081 1,544,907 1,522,450 (824,029) (775,282) 720,878 747,168 OTHER ASSETS Accounts receivable, City of Fairhope: Electric Fund 83,758 90,629 Waste and Wastewater Fund 45,964 46,444 Total other assets 129,722 137,073 TOTAL ASSETS $1,420,164 $1,232,552 The notes to the financial statements are an integral part of this statement. PARKER, FICKLING & JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. LIABILITIES AND CAPITALIZAITON 1980 1979 CURRENT LIABILITIES Accounts payable, trade $ 48,993 $ 48,158 Accrued expenses and taxes: Town of Daphne 17,844 4,177 Payroll taxes 1,638 3,527 Employees' retirement contribution 1,796 4,208 Interest 7,200 7,717 Insurance withholding 19 54 28,497 19,683 First mortgage revenue bonds, 1961 series 45,000 40,000 Total current liabilities 122,490 107,,841 NON CURRENT LIABILITIES First mortgage revenue bonds, 1961 series 495,000 540,000 Accounts payable, City of Fairhope, General Fund 14,483 23,860 Total non current liabilities 509,483 563,860 Total liabilities 631,973 671,701 CAPITALIZATION Contributions in aid of construction 72,055 57,572 Retained earnings 716,136 503,279 Total capitalization 788,191 560,851 TOTAL LIABILITIES AND CAPITALIZATION $1,420,164 $1,232,552 The notes to the financial statements are an integral part of this statement. PARKER, FICKLING 9 JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. CITY OF FAIRHOPE, ALABAMA NATURAL GAS FUND STATEMENT OF INCOME AND RETAINED EARNINGS WITH YEAR ENDED SEPTEMBER 30, 1980 BUDGET FOR THE YEARS ENDED SEPTEMBER 30, 1980 AND 1979 1980 er 1979 Ov(Under) Actual Budget Budget Actual_ OPERATING REVENUES Sales of natural gas $1,602,658 $1,885,000 $ (282,342) $1,375,084 Miscellaneous sales and receipts 3,207 1,000 2,207 9,786 Total operating revenues 1,605,865 1,886,000 (280,135) 1,384,870 OPERATING EXPENSES Natural gas purchases Operating, maintenance and administrative salaries Audit fees Accounting services Bad debts Christmas bonuses Computer services Dues and memberships Engineering services Gasoline and oil Insurance - casualty Insurance - employees group Legal fees Plant maintenance and operating supplies Maintenance - vehicles and equipment Miscellaneous Office supplies and postage Payroll taxes Employees' retirement Surveyor Telephone Utilities Travel, training and school Trustee fees Uniforms Distribution of joint revenue Total operating expenses EARNINGS FROM OPERATIONS BEFORE DEPRECIATION Depreciation EARNINGS FROM OPERATIONS (carried forward) 960,994 1,284,000 (323,006) 840,047 111,717 121,300 (9,583) 103,117 2,100 2,600 (500) 2,600 1,800 3,000 (1,200) 1,650 1,000 - 1,000 - 450 500 (50) 7 5,106 4,400 706 4,321 3,561 3,000 561 3,504 7,358 10,000 (2,642) 8,374 8,914 6,500 2,414 6,594 17,140 27,000 (9,860) 17,290 6,292 6,900 (608) 5,619 205 - 205 148 11,955 21,000 (9,045) 13,618 5,172 4,500 672 4,796 9 1,000 (991) 737 4,392 3,700 692 3,909 7,807 7,344 463 7,278 6,492 14,400 (7,908) 4,600 100 - 100 150 2,778 6,000 (3,222) 5,870 1,260 2,000 (740) 1,627 1,707 2,000 (293) 1,703 580 - 580 620 293 500 (207) 324 6,300 4,200 2,100 4,177 1,175,482 1,535,844 (360,362) 1,042,673 430,383 350,156 80,227 342,197 48,747 41,000 7,747 55,193 $ 381,636 $ 309,156 $ 72,480 $ 287,004 PARKER, FICKLING & JORDAN. CERTIFIED PUBLIC ACCOUNTANTS, P.C. 52 EARNINGS FROM OPERATIONS (brought forward) OTHER (DEDUCTIONS) INCOME Interest expense Interest earned Earnings transferred to the General Fund'of the City of Fairhope Purchased natural gas refunds for prior years Transfers to General Fund for street resurfacing 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) income NET EARNINGS RETAINED EARNINGS AT BEGINNING OF YEAR RETAINED EARNINGS AT END OF YEAR 1980 1979 Over Under) Actual Budget Budget Actual $ 381,636 $ 309,156 $ 72,480 $ 287,004 (21,858) (22,000) (142) (23,409) 27,334 10,000 17,334 10,102 (218,000) (218,000) - (185,000) 180,462 180,462 - (128,843) 128,843 - (6,364) 5,091 (898) 898 (8,547) (6,976) 6,976 8,547 (168,779) (230,000) (61,221) (199,580) 212,857 79,156 133,701 87,424 503,279 503,279 - 415,855 $ 716,136 $ 582,435 $ 133,701 $ 503,279 The notes to the financial statements are an integral part of this statement. PARKER, FICKLING d JORDAN. CERTIFIED PUBLIC ACCOUNTANTS, P.C. . CITY OF FAIRHOPE, ALABAMA WATER AND WASTEWATER FUND BALANCE SHEET SEPTEMBER 30, 1980 AND 1979 ASSETS 1980 1979 CURRENT ASSETS Cash in First National Bank of Baldwin County: Operating account $ 18,662 $ 78,444 Passbook savings accounts 40,439 1,629 Construction accounts 459 19,975 Bond sinking fund 19,445 18,216 Cash in Merchants National Bank of Mobile, bond sinking fund 44,603 45,053 123,608 163,317 Receivables: Federal Disaster Assistance Administration 26,119 26,119 Federal Emergency Management Agency 1,179 1,179 Miscellaneous 12,364 10,552 Accrued interest 2,894 - Deposits on equipment 3,400 2,700 Allowance for doubtful accounts (1,076) (1,076) 44,880 39,474 Materials inventories 36,918 32,475 Prepaid operating expenses 5,834 5,884 Total current assets 211,240 241,150 SINKING FUNDS Merchants National Bank of Mobile Reserve and replacement funds PROPERTY, PLANT AND EQUIPMENT (at cost) Water and wastewater systems Vehicles and equipment Accumulated depreciation Total property, plant and equipment - net OTHER ASSETS Unamortized debt cost Unamortized deferred plant maintenance Receivable - Electric Fund Total other assets TOTAL ASSETS 88,682 101,943 4,454,485 4,370,954 49,008 46,929 4,503,493 4,417,883 (1,127,160) (1,010,688) 3,376,333 3,407,195 13,318 25,454 11,626 50,398 $3,726,653 15,037 31,945 46,982 $3,797,270 PARKER, FICKLING & JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 53 LIABILITIES AND CAPITALIZATION CURRENT LIABILITIES Accounts payable, trade Accrued expenses and taxes: 1980 - 1979 $ 15,629 $ 8,771 Payroll taxes 1,946 4,131 Employees' retirement contribution 2,268 2,148 Interest 22,218 23,047 Insurance and employee withholding 79 562 26,511 29,888 Customers' deposits 39,075 19,975 First mortgage revenue bonds payable 60,000 62,000 Total current liabilities 141,215 120,634 NON CURRENT LIABILITIES First mortgage revenue bonds payable 1,225,000 1,285,000 Accounts payable, City of Fairhope: General Fund 5,990 59,555 Electric Fund - 13,195 Natural Gas Fund 45,964 46,444 51,954 119,194 Total non current liabilities 1,276,954 1,404,194 Total liabilities 1,418,169 1,524,828 CAPITALIZATION Contributions in aid of construction: United States Government 1,069,106 1,053,300 Customers and developers 377,757 354,838 Retained earnings 861,621 864,304 Total capitalization 2,308,484 2,272,442 TOTAL LIABILITIES AND CAPITALIZATION $3,726,653 $3,797,270 The notes to the financial statements are an integral part of this statement. PARKER, FICKLING B JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. CITY OF FAIRHOPE, ALABAMA WATER AND WASTEWATER FUND STATEMENT OF INCOME AND RETAINED EARNINGS WITH YEAR ENDED SEPTEMBER 30, 1980 BUDGET FOR THE YEARS ENDED SEPTEMBER 30, 1980 AND 1979 1980 Over (Under) Actual Budget Budget OPERATING REVENUES Sales of water $ 413,433 $ 360,000 $ 53,433 Wastewater charges 134,582 124,000 10,582 Other charges, sales and receipts- 15,123 17,300 (2,177) Total operating revenues 563,138 501,300 61,838 OPERATING EXPENSES Electric power Operating, maintenance and administrative salaries Audit fees Accounting services Bad debts Bond issue expense Christmas bonuses Computer services Legal Dues and memberships Engineering services Gasoline and oil Insurance - casualty Insurance - employees' group Plant maintenance and operating supplies Maintenance -vehicles and equipment Miscellaneous Office supplies and postage Payroll taxes Professional services Employees' retirement Rental Telephone Travel, training and school Uniforms Surveyor Trustee fees Total operating expenses EARNINGS FROM OPERATIONS BEFORE DEPRECIATION Depreciation 1979 Actual $ 364,612 125,404 19,170 509,186 62,359 51,000 11,359 54,520 140,354 133,700 6,654 117,196 2,100 2,975 (875) 2,600 1,800 1,500 300 2,025 1,000 (1,000) - 885 - 885 882 600 550 50 - 5,455 4,400 1,055 4,852 442 - 442 - 123 210 (87) -26 4,841 1,500 3,341 3,587 6,468 4,400 2,068 4,819 16,756 15,000 1,756 17,765 10,781 10,400 381 83183 77,643 44,000 33,643 52,732 5,129 7,000 (1,871) 7,070 377 1,000 (623) 574 1,472 3,000 (1,528) 2,922 9,506 7,100 2,406 8,270 - - 539 11,091 13,550 (2,459) 4,600 1,150 - 1,150 - 4,147 4,200 (53) 4,200 583 1,000 (417) 701 374 400 (26) 391 - - 575 1,626 2,485 (859) 1,865 366,062 310,370 55,692 300,894 197,076 190,930 6,146 208,292 119,069 85,000 34,069 111,831 EARNINGS FROM OPERATIONS (carried forward) $ 78,007 $ 105,930 $ (27,923) $ 96,461 PARKER, FICKLING & JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 54 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 damages repair cost Federal assistance for flood damage Hurricane damage repair cost Federal assistance for hurricane damage TOTAL OTHER (DEDUCTIONS) INCOME NET INCOME (LOSS_) RETAINED EARNINGS AT BEGINNING OF YEAR RETAINED EARNINGS AT END OF YEAR 1980 Over (Under) Actual Budget Budget $ 78,007 $ 105,930 $ 27,923 (71,300) (71,770) (470) 11,915 8,000 3,915 (20,000) (1,305) (80,690) (2,683) (20,000) (83,770) 22,160 864,304 864,304 1,305 (3,080) (24,843) 1979 Actual $ 96,461 (71,099) 9,102 (32,649) 26,119 (1,531) 1,179 (68,879) 27,582 836,722 $ 861,621 $ 886,464 $ (24,843) $ 864,304 The notes to the financial statements are an integral part of this statement. PARKER, FICKLING d JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. FAIRHOPE PUBLIC LIBRARY FINANCIAL STATEMENTS SEPTEMBER 30, 1980 PARKER, FICKLING & JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. FAIRHOPE PUBLIC LIBRARY SEPTENBER 30, 1980 CONTENTS Page Accountants' opinion 1 Financial statements: Statement of assets,, liabilities and fund balance 2 Statement of changes in fund balance 3 Statement of cash receipts and cash disbursements 4 Notes to the financial statements 5 PARKER, FICKLING & JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. I PARKER, FICKLING & JORDAN, P.C. CERTIFIED PUBLIC ACCOUNTANTS FAIRHOPE, ALABAMA SAMUEL F. PARKER LESLIE T. FICKLING H. ALLEN JORDAN XAVIER A. HARTMANN, III J. KENNETH HANAK DONALD G. CHASTAIN ACCOUNTANTS' OPINION December 24, 1980 Fairhope Public Library Fairhope, Alabama MEMBER, AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS We have examined the statement of assets, liabilites and fund balances of the Fairhope Public Library as of September 30, 1980 and 1979 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 included 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, 1980 and 1979,_arising from cash_ transactions and the revenues collected and expenditures made by it during the years then ended on a consistent basis. Certified Public Accountants PARKER, FICKLING & JORDAN. CERTIFIED PUBLIC ACCOUNTANTS, P.C. 2 FAIRHOPE PUBLIC LIBRARY STATEMENT OF ASSETS, LIABILITIES AND FUND BALANCE SEPTEMBER 30, 1980 AND 1979 ASSETS 1980 1979 CASH •Fist National Bank of Baldwin County $ 5,800 $ 7,755 Baldwin County Savings and Loan Association: Savings account - regular 5,107 4,834 Equipment Replacement Fund Savings 1,628 942 Certificate of deposit 222148 20,000 Total cash 34,683 33,531 RECEIVABLE City of Fairhope (Note 1) 1,088 2,865 TOTAL ASSETS $ 35,771 $- 36,396 LIABILITIES AND FUND BALANCES LIABILITIES Employees' payroll taxes withheld $ 5 $ 1,659 FUND BALANCE 35,766 34,737 LIABILITIES AND FUND BALANCE $ 35,771 $ 36,396 See notes to the financial statements. PARKER, FICKLING & JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 3 FAIRHOPE PUBLIC LIBRARY STATEMENT OF CHANGES IN FUND BALANCE FOR THE YEARS ENDED SEPTEMBER 30, 1980 AND 1979 1980 1979 Over (Under) 01 Actual Budget Budget Actual FUND BALANCE, AT BEGINNING OF YEAR $34,737 $34,737 $ -0- $11,919 Add; Excess cash receipts over cash disbursements 1,029 206 823 22,818 FUND BALANCE, AT END OF YEAR $35,766 $34,943 $ 823 $34,737 See notes to the financial statements. PARKER, FICKLING 8 JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 4 FAIRHOPE PUBLIC LIBRARY STATEMENT OF CASH RECEIPTS AND CASH DISBURSEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 1980 AND 1979 1980 1979 Over (Under) Actual Budget Budget Actual RECEIPTS City of Fairhope $58,100 $58,100 $ -0- $58,100 Fines 12664 23,000 (336) 2,051 Lost books 70 -0- 70 57 Gifts and memorials 13,298 4,000 (22702) 12243 Friends of the Fairhope Library -0- -0- -0- 10$08 Estate of Ford Patterson -0- -0- -0- 20,000 Copier receipts 3$29 2,000 11329 2,503 Meeting room rent 455 500 (45) 410 Memberships - out of city 1,177 1,500 (323) 1,117 Interest income 23,507 -0- 2$07 302 Miscellaneous income 83 -0- 83 359 Total receipts 68,683 68,100 583 96,650 DISBURSEMENTS Salaries 302275 303,775 (500) 36,897 Payroll taxes 2$13 1,887 626 2,109 Book purchases 14,470 13,000 1,470 132806 Periodicals 2,864 22000 864 1,857 Supplies and postage 3,421 3,000 421 32708 Telephone 612 800 (188) '792 Utilities 32457 3,600 (143) 3,013 Repairs and maintenance 957 12000 (43) 591 Janitorial service 12200 131300 (100) 1,200 Audit 300 300 -0- 300 Dues and registration 91 200 (109) 208 Miscellaneous 225 300 (75) 326 Travel expense 204 1,000 (796) 13,146 Audio visual and film circuit 2,806 2,800 6 131763 Accounting and legal fees 13,200 1,200 -0- 12223 Furniture and equipment (Note 4) 1,291 1,000 291 4,893 Rent 462 462 -0- -0- Children's programs 585 500 85 -0- Insurance, casualty 85 2,570 (2,485) -0- Publicity 163 200 (37) -0- Employees' hospitalization insurance 89 -0- 89 -0- Employees' retirement 384 -0- 384 -0- Total disbursements 67,654 67,894 (240) 73,832 EXCESS CASH RECEIPTS OVER DISBURSEMENTS $ 1,029 $ 206 $ 823 $22,818 See notes to the financial statements. PARKER, FICKLING 6 JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. 5 1 FAIRHOPE PUBLIC LIBRARY NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1980 NOTE 1 RECEIPTS, FRIENDS OF THE FAIRHOPE LIBRARY During the fiscal year ended September 30, 1979, The Friends of the Fairhope Library contributed a total of $10,508 to the Fairhope Public Library. Of this amount, $7,508 was to be expended for specific purposes. At the regular meeting of the Library Board on November 15, 1979, the Board accepted the final report on these expenditures. NOTE 2 RECEIPTS, ESTATE OF FORD PATTERSON The estate of Ford Patterson donated $20,000 to the Fairhope Public Library in July, 1979. These funds were deposited with Baldwin County Savings and Loan Association in a Money Market Certificate. NOTE 3 RECEIVABLE, CITY OF FAIRHOPE The receivable from the City of Fairhope at September 30, 1980 and 1979 represents the balances due from the monthly appropriation for September 1980 and 1979 respectively. NOTE 4 FURNITURE AND EQUIPMENT ,PURCHASES Equipment purchases for the year ended September 30, 1980 consisted of the following: Equipment Amount Tape player and projector $ 213 Children's record player 93 Rockwell calculator 125 Lens 235 Microfilm file 625 TOTAL $1.291 PARKER, FICKLING & JORDAN, CERTIFIED PUBLIC ACCOUNTANTS, P.C. END OF 19.79-1980 AUDIT REPORT