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Finance Department |
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Finance Department |
Financial Summary
Financial Summary for the Fiscal Year Ended September 30, 2006
[General Information] [Economic Condition and Outlook] [Cash Management]
[Other Information] [Acknowledgements] [Finance Home]
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(Requires Adobe Acrobat Reader)
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The Town of Longboat Key is a political subdivision of the State of Florida and is a barrier island community situated off the mainland cities of Sarasota and Bradenton on Florida's West Coast. The Town covers 4.75 square miles and is located in both Sarasota and Manatee Counties. The Town includes two dependent special districts consisting of Longboat Key Beach Erosion Control District A and Longboat Key Beach Erosion Control District B. The Town was incorporated in 1955. A revised charter was approved by the voters in 1998.
The Town has a Commission/Manager form of government. Seven Commissioners are elected for two year terms. The appointed Mayor is the Commission's presiding officer. Elections are held annually with either four or three seats to be decided upon. The Town has five election districts and two At Large Commission seats. The Town Manager is appointed by the Commission and administers the daily operations of the Town through appointed department heads.
The citizens enjoy a full range of services including Police, Fire, Ambulance, Streets, Parks, Public Improvements, Planning, Zoning and General Administrative Services. The Town also operates a town wide water and sewer transmission system. The Town purchases its water and waste treatment from Manatee County. Sanitation, electric, telephone, gas and cable television services are provided by franchisees.
Economic Condition and Outlook
Economic factors for which many other cities and counties are vitally concerned (e.g., unemployment and commercial/industrial growth) do not have the same weight in a Town that is more than 95% built out and most citizens are retired. However, Longboat Key has gained national recognition as a premier community; in the process the Town has experienced rapid growth over the last decade; in that time it has added more than $3 billion to assessed values. In 1996 the assessed value of property on Longboat Key was $1.96 billion with a functional population estimated at 19,410. In 2006 the assessed value of the property was $6.56 billion with a functional population estimated at 23,525.
For a retrospective comparison in 1974 the assessed value of the property was only $113,440,790 or 1.7% of the 2006 value. Longboat Key is in a good position to maintain its status among the finest communities in the world.
The Town has adopted a formal investment policy that defines authorized investment instruments similar to those articulated in the Florida Statutes. These types of investments emphasize protection of principal and liquidity. The finance department monitors the daily cash needs and invests the Town's portfolio, maximizing investment returns while protecting the principal in accordance with the written investment policies. However, the pension fund assets are invested by a third party money manager, and the activity of the money manager is monitored by a professional consultant.
For most of 2006 interest rates at the State Board of Administration (SBA) exceeded two-year government instruments. Thus, most of the Town's funds were invested with the SBA. Additionally, the SBA offers same-day cash, same-day investments, free wire fees and other advantages. The average interest rate for fiscal year 2006 was 4.73%.
Independent Audit.
Chapter 11.45 Florida Statutes, requires an independent certified public accountant's financial audit of cities and counties in the state. The requirement has been met for the fiscal year ended September 30, 2004, and the opinion of the auditors has been included in this report. In addition to meeting the requirement set forth in the state statutes, when applicable the audits are designed to meet the requirements of the federal Single Audit Act of 1984 and related OMB Circular A-128. The auditors' reports on the general purpose financial statements and combining and individual fund statements and schedules are included in the financial section of this report.MD&A.
Governmental accounting and auditing principles requires that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A).
(MD&A Requires Adobe Acrobat Reader)
Awards.
The Government Finance Officers Association and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Town of Longboat Key, Florida for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2006. This was the 26th consecutive year that the government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.A Certificate of Achievement is valid for a period of one year only. We believe our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate.
The preparation of this report on a timely basis could not have been accomplished without the efficient and dedicated services of the entire staff of the Finance Department. We take this opportunity to express appreciation to the entire staff for their tireless attention to detail which makes compiling this report all the easier.
The staff of Shinn & Company, P.A. is appreciated for their comments and advice.
Also, our thanks to members of the Town Commission for their support in planning and guiding the financial affairs of the Town in a responsible and progressive manner.
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