ENTERPRISE FUN D BUD GET A CTUA L VA RIAN CE $236, ,600 13,100 30,322 66,165 25, ,945 (12,t92) 160 (40,000) 14.

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1 EX H IBIT D TAN GIPAH OA PARISH CO UN CIL Am ite,louisiana STATEM ENT OF REVENUES,EXPENSES,AND CHANGES IN RETAINED EARNINGS BUDGET (GAAP BASIS)AND ACTUAL PROPRIETARY FUN D TYPE ForTheYearEnded Decem ber O PERATING RE VEN UES Chargesforservices Otherrevenue TotalOperating Revenues ENTERPRISE FUN D BUD GET A CTUA L VA RIAN CE $236, $230, ($5,103) (5,103) OPERA TING EX PENSES Personnelservices M aterialsand supplies Professionalservices Repairsand m aintenance Otherexpenses Depreciation TotalOperating Expenses 52,600 13,100 30,322 66,165 25, ,438 12,453 33,479 71,024 19, (1,838) 647 (3,157) ~.85~ 6,538 (27,365) (30,034) Operating Income(Loss) 22,945 (12,t92) NON-OPERA TING REVENUES (EXPENSES) Interestincom e Interestexpense Gain (Lo ss)on sale ofassets 160 (40,000) (44,565) (6,250) (48) (4,565) (20,750) TotalNon-Operating Revenues(Expenses) (25,340) (50,703) (25,363) Net(Lo ss)before Operating Transfers Operating transfersin (2,395) (62,895) (60,500) (2,395) (37,895) (35,500) Add depreciation on fixed assetsacquired by donationsthatreducescontributed capital Sale offixed assetsacquired by donation thatreducescontributed capital 32,555 32,555 20, Increase(Decrease)in Retained Earnings (2,395) 15,410 Retained Earnings(Deficit)at Beginning of Year (44,284). (44,284) Retained Earnings(Deficit)atEnd ofyear $ The notesto the financialstatem entsare an integralpartof thisstatem ent

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3 CASH FLOW S FROM OPERATING ACTIVITIES: Operating income (loss) Adjustmentsto reconcilenetoperating income(loss) to netcash provided by operating activities: Depreciation Increase in accountsreceivable Increase in due from otherfunds Increase (decrease)in accountspayable Increase(decrease)in accrued expenses Increase in due to otherfunds Totaladjustments TANGIPAHOA PARISH COUNCIL Am ite,louisiana C O M BIN ED STA TEM EN T O F CA SH FLO W S PRO PRIETA RY FUN D TY PES Forthe YearEnded D ecember Enterprise Fund ($12,192) 52,365 (3,925) (34,039) (25,993) 4,000 (7,592) EX H IBIT F Internal Service Fund $48,804 22,254 (4,000) Netcash provided by (used for)operating activities CASH FLOW S FRO M N ON CA PITAL FINA NCING ACTIVITIES Operating transferout O perating tran sferin Principalrepaym ents Interestpaid Netcash (used for)noncapitalfinancing activities CA SH FLO W S FRO M CA PITA L A N D RELATED FIN AN C IN G A C TIV ITIES: Paym entsforcapitalacquisitions Proceedsfrom sale of assets Proceeds from revenue bonds (19,784) 25,000 (7,079) (44,565) (26,644) (15,841) 14, (25,000) (25,000) (23,168) Netcash provided by (used for)capitaland related financing activities CASH FLOW S FROM INV ESTING ACTIVITIES Interestincom e 28,959 ( Netcash provided by investing activities NET CASH INCREASE (DECREASE)FOR THE YEAR CASH AT BEG INN ING O F Y EAR CA SH AT EN D O F Y EAR RECONCILIATIO N O F CASH U N RESTRICTED RESTRICTED 112 (17,357) $13,738 $11, $ , $66,332 The notesto the financialstatem entsare an integralpartofthis statem ent

4 TA N G IPA H OA PA RISH CO U N CIL A m ite,louisiana N O TES TO FIN A N CIA L STA TEM EN TS A s of and for the Y ear Ended D ecem ber 31,1995 IN TR O D U CTIO N The Tangipahoa Parish C ouncilis the governing authority fortangipahoa Parish and is a political subdivision of the State of Louisiana. The Parish of Tangipahoa operatesundera hom e rule charter and is governed by the "council-president" form of governm ent. A n elected councilof ten m em bers representing the variousdistrictsw ithin the parish constitute the legislative branch of the governm ent and an elected presidentisth e chief executive officerand head of the executive branch. The council and presidentserve fouryearterm sthatexpire in January Louisiana Revised Statute 33:1236 givesthe Tangipahoa Parish Councilvariouspow ers in regulating and directing the affairs of the parish and its inhabitants. The m ore notable of those are the pow er to m ake regulations for its ow n governm ent;to regulate the construction and m aintenance of roads, bridges,and drainage system s;to regulate the sale of alcoholic beverages;and to provide forthe health and w elfare of the poor,disadvantaged,and unem ployed in the parish. Funding to accom plish these tasks is provided by ad valorem and sales taxes,beer and alcoholic beverage perm its,state te,~enue sharing,an6 various other state and federalgrants. Tangipahoa Parish occupies approxim ately 818 square m iles w ith a population of approxim ately 92,000. The parish councilm aintains approxim ately 1100 m iles of roads,550 m iles of w hich are paved and 550 m iles of w hich are gravel. Parish counciloffices are located in the parish courthouse in A m ite,louisiana,w ith road m aintenance facilitieslocated at2 locationsw ithin the parish. SU M M A R Y O F SIG N IFIC AN T A C C O U N T IN G PO LIC IE S A. R E PO R TIN G E N TIT Y A s the governing authority of the parish,for reporting purposes,the Tangipahoa Parish Councilisthe financialreporting entity for Tangipahoa Parish. The financialreporting entity consistsof(a)the primary government(tangipahoa Parish Council),(b)organizationsfor which the primary governm entisfinancially accountable,and (c)otherorganizationsfor w hich the nature and significance of their relationship w ith the prim ary governm entare such that exclusion w ould cause the reporting entity's financialstatem ents to be m isleading or incom plete. GovernmentalAccounting StandardsBoard (GASB)StatementNo.14 established criteria for determ ining w hich com ponent units should be considered part of the Tangipahoa Parish C ouncil for financial reporting purposes. T he basic criterion for including a potential com ponentunitw ith in th e reporting entity isfinancialaccountability. The G A SB has setforth criteria to be considered in determ ining financialaccountability. Thiscriteria includes: 18

5 Tangipahoa Parish C ounc A m ite.louisiana N otes to FinancialStatem ents (C ontinued 1. Appointing avoting majority ofan organization'sgoverning body,and a. The ability of the Tangipahoa Parish Council to im pose its w ill on that organization and/or b. The potentialforthe organization to provide specific financialbenefits to or im pose specific financialburdenson the Tangipahoa Parish Council. 2. O rganizations for w hich the Tangipahoa Parish C ouncildoes notappointa voting majority butarefiscally dependenton thetangipahoaparish Council. 3. O rganizations for w hich the reporting m isleading if data of the organization is significance of the relationship. C om ponentu nit C om m unication D istrictn o.1 G ravity D rainage D istricts: N o.1 N o.4 N o.5 Construction Board ofadjustments & A ppeals Fire Protection D istrictn o.1 G asu tility D istrictn o.1 H ospitalservice D istricts: N o.1 N o.2 IndustrialD evelopm entd istricts: N o.1 N o.2 Recreation D istricts: N o.5 N o.6 Tangipahoa Parish Industrial D evelopm entboard Tangipahoa Parish Library Tangipahoa Parish Planning C om m ission Tangipahoa Parish TouristComm ission entity financial statem ents w ould be not included because of the nature or Based on the previous criteria, the Tangipahoa Parish Council has determ ined that the follow ing com ponentunitsare partof the reporting entity: Fiscal Criteria YearEnd U sed D ecem ber 31 1 D ecem ber31 D ecem ber 31 D ecem ber 31 D ecem ber 31 D ecem ber 31 D ecem ber 31 June 30 Septem ber 30 D ecem ber 31 D ecem ber31 D ecem ber 31 D ecem ber 31 D ecem ber 31 D ecem ber31 D ecem ber 31 D ecem ber 31

6 A m ite.louisiana N ote~ 1o FinancialStatem ents (C ontinued W aterw orksd istricts: N o,8 H usser-loranger Tangipahoa W aterd istrict D ecem ber 31 D ecem ber31 D ecem ber The Tangipahoa Parish Councilhas chosen to issue financial statem ents of the prim ary government (Tangipahoa Parish Council) only;therefore,none of the previously listed com ponentunits are included in the accom panying financialstatem ents. These primary government(tangipahoa Parish Council)financialstatementsinclude allfunds, accountgroups,and organizations for w hich the Tangipahoa Parish Councilm aintains the accounting records. The organizations for w hich the Tangipahoa Parish Councilm aintains the accounting recordsare considered partofthe primary governm ent(tangipahoa Parish Council)and include Fire Protection DistrictNo.2,Recreation DistrictsNo.1and No.2, Tw enty-firstjudicialc rim inalcourtfund,and Sew erage D istrictn o.1. G A SP~Stat.em ent14 provides for ~ e ~,ssuance ~f prim ary governm entfm anclals'~atem ents that are separate from those of the reporting entity. H ow ever, the prim ary governm ent's (Tangipahoa Parish Council)financialstatementsare nota substitute forthe reporting entity's financialstatem ents. The accom panying prim ary governm entfinancialstatem entshave been prepared in conform ity w ith generally accepted accounting principles as applied to governm entalunits. These financialstatem entsare notintended to and do notreporton the reporting entity butratherare intended to reflectonly the financialstatem ents of the prim ary govermnent(tangipahoa Parish Council). C onsidered in the determ ination of com ponent units of the reporting entity w ere the Tangipahoa Parish Sherif,Clerk ofcourt,tax A ssessor,schoolboard,the D istricta ttorney for the T w enty-firstjudiciald istrict,and the various m unicipalities in the parish. Itw as determ ined thatthese governm entalentitiesare notcom ponentunits of the Tangipahoa Parish C ouncilreporting entity because they have separately elected governing bodies,are legally separate,and are fiscally independentof the T angipahoa Parish C ouncil. B. FU N D A C C O U N TIN G The Tangipahoa Parish Counciluses funds and accountgroups to report on its financial position and the results of its operations. Fund accounting is designed to dem onstrate legal com pliance and to aid financialm anagem entby segregating transactions relating to certain governm entfunctions or activities.

7 Tangipahoa Parish Counc A m ite.louisiana N ote~ to FinancialStatem ents (C ontinued A fund is a separate accounting entity w ith a self-balancing setof accounts. O n the other hand,an accountgroup is a financialreporting device designed to provide accountability for certain assets and liabilities thatare notrecorded in the funds because they do notdirectly affectnetexpendable available financialresources. Funds of the Tangipahoa Parish Councilare classified into three categories: governm ental, proprietary,and fiduciary. In turn,each category isdivided into separate fund types. The fund classifications and a description of each existing fund type follow : G overnm entalfunds G overnm entalfunds are used to accountforallorm ostof the Tangipahoa Parish Council's generalactivities,including the collection and disbursem entof specific or legally restricted m onies,the acquisition or construction of generalfixed assets,and the servicing of general long-term debt. G overnm entalfu nds include: G eneralfund--the generaloperating fund of the Tangipahoa Parish Councilwhich accounts for allfinancialresources,exceptthose required to be accounted for in other funds SpecialR evenue Funds--accountfor the proceeds of specific revenue sources thatare legally restricted to expendituresfor specified purposes. D ebtservice Funds--accountfor transactions relating to resources retained and used forth e paym entof principaland intereston those long-term obligationsrecorded in the generallong-term obligations accountgroup. CapitalProjects Funds--accountfor financialresources received and used for the acquisition,constru ction,orim provem entof capitalfacilitiesnotreported in the other governm entalfunds. Proprietary Funds Proprieta ry fundsare used to accountforactivitiessim ilarto th ose found in th e private sector, w here the determ ination of netincom e isnecessary or usefulto sound financialadm inistration. Proprietary funds differ from governm ental funds in that their focus is on incom e m easurem ent,w hich,together w ith the m aintenance of equity, is an im portant financial indicator,proprietary funds include: 21

8 A m ite.louisiall~ N nte~ tn FinancialStatem ent~ (C ontinued Enterprise funds--accountforoperations(a)where the intentofthe governing body is thatthe costs(expenses,including depreciation)ofproviding goodsorservicesto the generalpublic on a continuing basis be financed or recovered prim arily th rough user charges,or(b)where the governing body hasdecided thatperiodic determ ination of revenues earned, expenses incurred, and/or net incom e is appropriate for capital m aintenance,public policy,m anagem entcontrol,accountability,orotherpurposes. The enterprise fund is the Sewerage D istrictn o.1 Fund,established by the parish governing authority under provisions of Louisiana Revised Statute 33:881. The districtisgoverned by a five-m em berboard of com m issioners,w hich isappointed by the parish council. Financing isprovided by userfees, 2 Internalservice funds--accountforthe financing of goodsorservicesprovided by one departm entto otherdepartm ents or go,jernm ents on a cost-reim bursem entbasis. The internalservice fund is the A dm inistrative Fund,established by the councilto renderadm inistrative and accounting servicesto variousfu nds. Itreceivesa fee from each fund based on a com bination of revenues received and services rendered for that fund. Fiduciary Funds Fiduciary fundsare used to accountforassets held on behalf of outside parties,including other goverm nents,oron behalf of otherfundsw ithin the Tangipahoa Parish Council.Fiduciary funds include an agency fu nd w hich accounts for assets thatthe Tangipahoa Parish C ouncil holdson behalfofothersastheiragent. Agency fu ndsare custodialin nature (assetsequal l~abilities)and do notitxvone measurement ofresults ofoperations. C. BA SIS O F A C CO UN TIN G The accounting and financial reporting treatm ent applied to a fund is determ ined by its m easurem ent focus. A llgovernm ental funds are accounted for using a current financial resourcesm easurem entfocus. W ith thism easurem entfocus,only currentassets and current liabilities are generally included on the balance sheet. O perating statem ents of these funds presentincreasesand decreasesin netcurrentassets. The m odified accrualbasisof accounting is used by all governm ental fu nds and agency fu nds. The governm ental funds use the follow ing practices in recording revenues and expenditu res:

9 A m ite.louisiana N otes to FinancialStatem ents (C ontinued R evenues Revenuesare recognized in the accounting period in w hich they becom e both available and m easurable. Licenses and perm its, charges for services, fines and forfeitures, and m iscellaneousrevenuesare recorded asrevenueswhen received in cash. G eneralproperty taxes,self-assessed taxes,and investmentearningsare recorded when earned (when they are measurable and available). Expenditures E xpendituresare recognized in the accounting period in w hich the fund liability is incurred, ifm easurable,exceptexpendituresfordebtservice,prepaid expenses,and otherlong-term obligations w hich are recognized w hen paid. Other Financing Sources(Uses) Transfers between funds thatare notexpected to be repaid (and any other financing source/use)are accounted forasotherfinancing sources(uses). A llproprietary fu ndsare accounted foron a flow of econom ic resources m easurem entfocus and a determ ination of netincom e and capitalm aintenance. W ith thism easurem entfocus,all assetsand allliabilitiesassociated w ith the operation of these fundsare included on the balance sheet. The proprietary funds use the accrualbasisof accounting. R evenues are recognized when earned,and expenses are recognized atthe tim e liabilitiesare incurred. D. BU D G ETS The counciluses the follow ing budgetpractices Prelim inary budgets forthe ensuing yearare prepared by the director of finance during O ctober of each year. D uring N ovem ber,the councilreview sthe proposed budgets and m akeschangesasitdeem sappropriate. The availability of the proposed budgets are then advertised in theofi cialjournal.priorto meeting in December,thecouncil holds a public hearing on the proposed budgets in order to receive com m ents from residents. Changesare m ade to th e proposed budgetsbased on the public hearingsand the desires of the council as a w hole. The budgets are then adopted during the council'sm eeting and noticeispublished in theofi cialjournal. 2 U nexpended appropriations lapse atyear-end and m ustbe reappropriated in the next year's budgetto be expended.

10 A m ite.louisiana 3 4 The council adopted m odified accrualbasis budgets for the G eneral Fund and all specialrevenue funds,exceptforthe Crim inalcourtfund for w hich there w as no budgetadopted. The counciladopted accrualbasisbudgets forthe proprietary funds. Budgetary controlisatthe functionallevel. W ithin functions,th e parish presidenthas the authority to m ake am endm ents as necessary. D uring the year,the councilreceivesquarterly budgetcom parison statem ents thatare used to controlth e operationsof th e parish. The directorof finance presentsnecessary budgetam endmentsto the councilduring the yearwhen,in hisjudgment,actual operations differm aterially from those anticipated in the originalbudget. D uring a regular m eeting the councilreview s the proposed am endm ents,m akes changes as it feelsnecessary,and form ally adoptsthe am endm ents. The adoption of am endm ents isincluded in councilminutespublished in theofficialjournal. Thebudgetfor1995 w as am ended several tim es;the final am ended budget of D ecem ber 26, 1995, is reflected in the accom panying budgetcom parisons. T he follow ing reconciles the revenues,expenditures, and other financing sources (uses)forthe specialrevenue fundsasshown on ExhibitB with the am ountshown on ExhibitC : R evenues -E xhibitb $11,392,086 C rim inalc ourtfu nd Revenues -ExhibitC ( ) $ Expenditures -ExhibitB C rim inalc ourtfu nd Expenditu res -ExhibitC $10,750,968 (406.80B $10:344,167 Otherfinancing sources(uses)- ExhibitB C rim inalc ourtfund $ 111,975 (28.907) Otherfinancing sources(uses)- ExhibitC

11 E. EN C UM BR AN CES The Tangipahoa Parish C ouncildoes notuse encum brance accounting F. CASH AND CASH EQUIVALENTS AND INVESTM ENTS Cash includesam ountsin interest-bearing dem and deposits. Cash equivalentsinclude am ounts invested in the Louisiana A ssetm anagem entpool. U nder state law,the Tangipahoa Parish Councilm ay depositfunds in dem and deposits,interest-bearing dem and deposits,m oney m arketaccounts,ortim e depositsw ith state banksorganized underlouisiana law and national banks having theirprincipaloffices in Louisiana. D uring the yearended D ecem ber31,1995,the Tangipahoa Parish Councilbegan investing fundswith the LouisianaAssetM anagementpool(lam P).LAM P isa cash managementpool initiated by the Louisiana State Treasurer's O ffice. U nderstate law,the Tangipahoa Parish Councilm ay investin U nited Statesbonds,treasury notes,orcertificates. These are classified asinvestm ents if theiroriginalm aturitiesexceed 90 days;how ever,if the originalm aturities are 90 days orless,they are classified ascash equivalents. Investm entsin the deferred com pensation agency fu nd are reported atm arket. G. SH O R T-TERM IN TERFU N D RE CEIV A BLES/PA Y ABLES D uring the course of operations,num erous transactions occurbetw een individualfunds for goods provided or services rendered. These receivablesand payables are classified asdue from otherfundsordue to otherfundson the balance sheet. Short-term interfund loansare classified as interfu nd receivables/payables. H. RE STRICTED A SSETS Restricted cash in Sew erage D istrictn o.1 atd ecem ber31,1995,consists of cash reserved forcontingenciesof$2,436.

12 A m ite.louisiana N a~es to FinancialStatem ents (C ontinued I. FIX ED A SSETS Fixed assets of governm entalfunds are recorded as expenditures atthe tim e purchased or constructed,and the related assetsare capitalized (reported)in the generalfixed assetsaccount group. Public dom ain or infrastru ctures are notcapitalized. The costsof constructing and capping landfill cells and constru cting a sludge treatm ent facility at the landfill are not capitalized. N o depreciation hasbeen provided on generalfixed assets. A llfixed assetsare valued athistoricalcostorestim ated costif historicalcostisnotavailable,exceptfordonated assets w hich are stated attheirm arketvalue on the date donated. Fixed assetsused in the proprietary fund operationsare included on the balance sheetof the funds net of accum ulated depreciation. Interest costs incurred during construction are capitalized. D epreciation of allexhaustible fixed assetsused by proprietary fund operations is charged as an expense against operations. D epreciation has been provided over the estim ated usefullives of the fixed assetsprincipally using the straight-line m ethod. IN TERN A L SERVICE FU N D O fi ce equipm ent EN TERPRISE FU N D Sew er utilities - Treatm entplantsand liftstations Sew erage system m ains and lines 3-7 years years years D epreciation of sew er utilities assets acquired by donation is treated as a reduction of contributed capital. J. C O M PEN SATED ABSEN CES Tile Tangipahoa Parish Councilhasthe follow ing policy relating to vacation and sick leave Parish Councilem ployeesare entitled to certain com pensated absencesbased on their length of em ploym ent and overtim e w orked. V ested com pensated absences are recorded as expenditu res w hen the liability is incurred. Sick leave has not been accrued as the em ployee's rightto sick leave does notvest. The cost of current leave privileges,com puted in accordance w ith G A SB Codification Section C60,is recognized asa current-yearexpenditure in the governm entalfunds w hen leave isactually taken. The costof leave privilegesnotrequiring currentresources,if any, isrecorded in the generallong-term obligations accountgroup. Leave privilegesassociated w ith em ployees of the proprietary fundsare recorded as a fund liability and salary expense.

13 A m ite.louisiana N. A D V A LO REM TA XES A d valorem taxes and related state revenue sharing are recorded in the year the taxes are assessed. A d valorem taxesare assessed on a calendaryearbasis, becom e due on N ovem ber 15 of each year, and becom e delinquent after D ecem ber 31. The taxes are generally collected in D ecem berof the currentyearand January and February of the ensuing year. O. SALES TA X ES O n O ctober3,1992,the votersof Tangipahoa Parish approved a renew alof a one percent parishw ide generalsales and use tax to be levied for the T angipahoa Parish C ouncil. T he proceedsof the tax are dedicated on the basisof 75 percentforroad and bridge m aintenance and the rem aining 25 per centfor generalgovernm entpurposes. The tax as renewed is effective through D ecem ber31,1997. P. TO TA L C O LUM N S O N CO M BINED STA TEM EN TS Totalcolum ns on the com bined statem entsare captioned M em orandum O nly to indicate that they are presented only to facilitate financialanalysis. D ata in these colum ns do notpresent financialposition,results ofoperations,orchangesin financialposition in conform ity w ith generally accepted accounting principles. N eith er is such data com parable to a consolidation. Interfund elim inationshave notbeen m ade in the aggregation of thisdata.

14 A m ite.louisiana N otes to FinancialStatem ents (~ ontinued 2. FUN D D EFIC ITS The follow ing individualfund has a deficitin retained earningsatd ecem ber 31, 1995: Fund D eficit Am oum Enterprise Fund - Sewerage D istrictno.1 $28,874 The deficitw illbe elim inated w ith increased revenues resulting from anticipated increases in the num berof custom ers. A lso,the m onthly sewerfee w asincreased in January 1996, from $16.50 to $ EX PEN D ITUR ES/EX PEN SES -A CTU A L AN D BUD G ET The follow ing individual funds have actual expenditures/expenses over budgeted expenditures/expenses for the year ended D ecem ber 31,1995: Fund Budget A ctual U nfavorable V arianc~ SpecialRevenue Road and Bridge Road and Bridge C ontract Road Lighting D istrictn o Road Lighting D istrictn o R oad Lighting D istrictn o Road Lighting D istrictn o G arbage D istrictn o.1 RuralFire Protection D istrictn o.2 Section 8 V oucher Enterprise Sew erage D istrictn o.1 $3,610,250 2,562,000 1,928 7,720 3,669 6,785 1,955, , , $3,738,724 2,684,477 1,996 7,879 3,686 6,831 1,977, , , $128, , ,622 25, $ $9.766,564 $473~299

15 N otes to FinancialStatem ents (C ontinued 4. LEV IED TA XE S The follow ing is a sum m ary of authorized and levied ad valorem taxes for the year: Authorized Levied Expiration M illage_ M illage D ate Parishw ide taxes: G eneralfund H ealth U nitm aintenance SpecialRevenue Fund D istricttaxes: Specialrevenue funds: Road Lighting D istrictn o.1 R oad L ighting D istrictn o.2 Road Lighting D istrictn o.3 Road Lighting D istrictn o.4 G arbage D istrictn o.1 Fire Protection D istrictn o.2 D ebtservice funds: Road D istricts: N o.101 Sub-D istrictn o. 1 of N o.101 G eneralservice Sub-D istricts: N o.4a N o.5 N o.8 Recreation D istricts: N o.1 N o Variable V ariable V ariable V ariable V ariable V ariable V ariable C onst The differencesbetween authorized and levied m illagesare the resultof the reassessm entof taxable property w ithin the parish required by A rticle 7,Section 23 of the Louisiana C onstitution of 1974.

16 A m ite.louisiana N otes to FinancialStatem ents (C ontinued 5. CASH AND CASH EQUIVALENTS AtDecember31,1995,the Tangipahoa Parish Councilhascash and cash equivalents(book balances) totaling $4,272,631comprised ofthe following: Deposits(see a below) Interest-bearing dem and deposits Investments(see b below) Investm entin Louisiana A ssetm anagem entpool Total $1,220, ,222 $ These deposits are stated atcost,w hich approxim atesm arket. U nderstate law,these deposits (orthe resulting bank balances)mustbe secured by federaldepositinsurance orthe pledge of securities ow ned by the fiscalagentbank. The m arketvalue of the pledged securitiesplusthe federal depositinsurance m ustatalltim es equalthe am ounton depositw ith the fiscalagent. These securitiesare held in th e nam e of the pledging fiscalagentbank in a holding orcustodial bank thatism utually acceptable to both parties. AtDecember31,1995,the Tangipahoa Parish Councilhas$1,981,680 in deposits(collected bank balances). These depositsare secured from risk by $543,467 of federaldepositinsurance, $870,258 ofpledged securitiesheld by the FederalReserve in the nameofthe council(gasb Category 1),and $567,955 ofpledged securitiesheld by the custodialbank in the name ofthe fiscalagentbank (GASB Category 3). Even though the pledged securities identified as G A SB Category 3,above, are considered uncollateralized underthe provisionsof G A SB Statem ent3,louisiana Revised Statu te 39:1229 im posesa statutory requirem enton the custodialbank to advertise and sellth e pledged securities w ithin 10 days of being notified by the Tangipahoa Parish Councilthatthe fiscalagenthas failed to pay deposited fundsupon dem and. b. The investmentin the Louisiana AssetM anagementpool(lam P)is stated atcost,which approxim atesm arket.the LA M P isa cooperative endeavor of localgovernm entalentitiescreated atthe initiative of the Louisiana State Treasurer's O fi ce forthose entitieselecting to poolfunds forinvestm ent. The LA M P isdesigned to com ply w ith the restrictions on investm entby m unicipalities,parishes, and other types of political subdivisions im posed under La.R.S.33:2955. The investm ent advisorisrestricted to m aintaining a dollar-w eighted average portfolio m aturity of notm ore than 90 days. Investm entsin the LAM P are not"deposits" w ithin the m eaning ofth e FederalD eposit Insurance A ctand such investm ents are notinsured. 31

17 T an~inahoa Par A m ite.louisiana R ECEIV A BLES The follow ing isa sum m ary of receivablesatd ecem ber31, 1995 Special G eneral Revenue Fund F~nd~ T axes: A d valorem Salesand use State revenue sharing O ther $300, ,985 59, ,781 D ebt Service Funds $336,327 Proprietary. Fun0~ Intergovernm entalgrants Federal State 8,510 50,000 62,640 A ccounts 202,874 37,288 O ther T otal $ ,446 $ $ A llreceivablesare reported attheirgrossvalue and, where appropriate,are reduced by the estim ated portion thatisexpected to be uncollectible.

18 T aneinahoa Parish C ounc A m ite.louisiana 7. FIXED A SSETS The changes in generalfixed assets follow : Balance January 1, 1995 A dditions C O U N C IL : Land $ 1,700,833 Buildings 11,093,828 M achinery and Equipm ent 3,131,583 O ffice Furniture 302,855 C onstruction in Progress Subtotals C RIM IN A L C O U RT : $ 271,195 2,529,542 1,457, Furniture and Equipment ,684 RECREA TIO N D ISTRICT N O.1: Buildings 501,900 Equipm ent Subtotals RECREA TIO N D ISTRI CT N O.2: Buildings 37,571 Equipm ent Subtotals RU R A L FIR E PR O TECTIO N D ISTRIC T N O.2: Equipment ,904 * $ Balance D ecem ber31 Deductions ,230 80, $ 1,972,028 13,622,740 4,071,400 ** 222, , , ,429 37, SEW ER IM PR OV EM EN TS -CD BG Land 29,422 C onstruction in Progress 121,063 V elm a Sew erage System Subtotals , , , T O TA L S $ * Thisrepresentsland acquired in a prioryearw hich w aspreviously om itted from the generalfixed assets. ** This represents deletions of general fixed assets acquired in the prior year w hich were individually lessthan $500.

19 A m ite.louisiarl~ N otes to FinancialStatem ents (C ontinued A sum m ary of proprietary property,plant,and equipm entfollow s Enterprise Fund Internal Service Fund L and Sew erage collection system Furniture and equipm ent Sub-total Less accum ulated depreciation T otal $ 22,100 1,727,841 1,749,941 ( ) ra~z53~ 143 $ ,249 (49.726) $ D epreciation expense for the yearended D ecem ber31, PEN SIO N PLAN Plan D escription. Substantially allem ployeesof the Tangipahoa Parish Council, exceptfor the districtattorney and assistantdistrictattorneys,are m em bers of the ParochialEm ployees R etirem ent System of Louisiana (System),a cost-sharing,multiple-employer defined benefitpension plan adm inistered by a separate board of trustees. The System iscom posed of two distinctplans, Plan A and Plan ]3,w ith separate assets and benefitprovisions. A llem ployees of the Tangipahoa Parish Councilare m em bersof Plan A. A llperm anentem ployees w orking atleast28 hours per w eek w ho are paid w holly or in partfrom parish fundsand allelected parish officials are eligible to participate in the System. U nder Plan A, em ployeesw ho retire atorafterage 60 w ith atleast10 yearsof creditable service,atorafterage 55 w ith atleast25 yearsof creditable service,oratany age w ith atleast30 yearsof creditable service are entitled to a retirem entbenefit,payable m onthly for life,equalto 3 percentof their final-average salary foreach yearof creditable service. H ow ever,forth ose em ployeesw ho w ere m em bersof the supplem entalplan only before January 1,1980,the benefitisequalto one percentof finalaverage salary plus$24 foreach yearofsupplem ental-plan-only service earned before January 1,1980,plus 3 percentoffinal-average salary for each year of service credited after th e revision date. Finalaveragesalary istheemployee'saverage salary overthe36 consecutiveorjoined monthsthatproduce the highestaverage. Em ployeesw ho term inate w ith atleastthe am ountof creditable service stated

20 N otes to FinancialStatem ents (C ontinued above,and do notw ithdraw theirem ployee contributions,m ay retire atthe agesspecified above and receive the benefitaccrued to theirdate of term ination. The System also providesdeath and disability benefits. Benefits are established or am ended by state statute. The System issuesan annualpublicly available financialreportthatincluded financialstatem entsand required supplem entary inform ation for the System. Thatreportm ay be obtained by w riting to the ParochialEm ployees'retirem entsystem,posto ffice Box 14619,Baton Rouge,Louisiana ,orby calling (504) The districtattorney and assistantdistrictattorneysare m em bers of the Louisiana D istricta ttorneys Retirement System (System),a cost sharing, multiple-employer defined benefitpension plan adm inistered by a separate board of tru stees. A ssistantdistrictattorneys w ho earn,asa m inim um,the am ountpaid by the state forassistantdistrict attorneysand are underthe age of 60 atthe tim e oforiginalem ploym entand alldistrictattorneysare required to participate in the System. Formemberswho joined the System before July 1,1990,and who elected notto be covered by the new provisions,the follow ing applies:a ny m em berw ith 23 or m ore years of creditable service regardlessof age m ay retire w ith a 3 per centbenefitreduction for each yearbelow age 55,provided th atno reduction isapplied if the m em berhas30 orm ore years of service. A ny m em berw ith atleast18 yearsofservice m ay retire atage 55 w ith a 3 percentbenefit reduction for each yearbelow age 60. In addition,any m em ber w ith atleast10 years of service m ay retire atage 60 w ith a 3 percentbenefitreduction foreach yearretiring below the age of 62. The retirem entbenefitisequalto 3 percentof the m em ber'saverage finalcom pensation m ultiplied by the num ber of years of his m em bership service, not to exceed 100 per cent of his average final com pensation. Formemberswho joined the System afterjuly 1,1990,orwho elected to becovered by thenew provisions,the follow ing applies: M em bersare eligible to receive norm alretirem entbenefits if they are age 60 and have 10 years of service credit,are age 55 and have 24 years of service credit,or have 30 years of service creditregardless ofage. The norm alretirem entbenefitisequalto 3.5 percent of the m em ber'sfinal-average com pensation m ultiplied by years of m em bership service. A m em ber iseligible forearly retirem entif he isage 55 and has 18 yearsof service credit. The early retirem ent benefitisequalto the norm alretirem entbenefitreduced 3 percentfor each year the m em berretires in advance of norm al retirem ent age. Benefits m ay not exceed 100 per cent of average final com pensation. The system also provides death and disability benefits. Benefits are established or am ended by state statute. The System issues an annualpublicly available financialreportthatincludesfinancialstatem entsand required supplem entary inform ation forthe System. Thatreportm ay be obtained by w riting to the Louisiana D istrict A ttorneys Retirem ent System,2109 D ecatur Street, N ew O rleans, Louisiana ,orby calling (504)

21 A m ite.louisiana N otes to FinancialStatem ents (C ontinued Funding Policy. U nder Plan A of the ParochialEm ployees Retirem entsystem,m em bers are required by state statu te to contribute 9.5 percentof theirannualcovered salary and the Tangipahoa Parish Councilis required to contribute atan actuarially determ ined rate. The currentrate is 8.0 percentof annualcovered payroll. C ontributionsto the System also include one-fourth of one percent (exceptorleansand EastBaton Rouge Parishes)ofthe taxesshown to becollectible by the tax rolls of each parish. These tax dollarsare divided between Plan A and Plan B based proportionately on the salaries of the active m em bersof each plan. The contribution requirem entsof plan m em bers and the Tangipahoa Parish Councilare established and m ay be am ended by state statute. A sprovided by Louisiana Revised Statute 11:103,the em ployercontributionsare determ ined by actu arialvaluation and are subjectto change each yearbased on the resultsofthe valuation forthe priorfiscalyear.the Tangipahoa Parish Council'scontributionsto the System underplan A forthe yearsending D ecem ber 31,1995,1994,and 1993,were $227,089,$204,353,and $191,712,respectively,equalto the required contributionsforeach year. Plan m em bers of the Louisiana D istricta ttorneysretirem entsystem are required by state statute to contribute 7.0 percentof theirannualcovered salary and the Tangipahoa Parish Council isrequired to contribute atan aetuarially determ ined rate. The currentrate is3.25 percentof annualcovered payroll(was2.5 percentuntiljune 30,1995). Contributionsto thesystem also include.2 percent of th e ad valorem taxes collected throughoutthe state and revenue sharing fundsas appropriated by the legislature. T he contribution requirem ents of plan m em bers and the T angipahoa Parish C ouncil are established and m ay be am ended by state statute. A s provided by Louisiana Revised Statute 11:103,the employercontributionsare determ ined by actuarialvaluation and are subjectto change each year based on the results of the valuation for the prior fiscal year. The T angipahoa Parish Council's contributionsto thesystem forthe yearending December31,1995 was$1,366,equalto the required contributions forthe year. D EFERR ED CO M PEN SATIO N PLAN The T angipahoa Parish C ounciloffers its em ployees tw o deferred com pensation plans created in accordance w ith InternalRevenue Code 457. O ne plan,w ith Public Em ployees Benefits Service C orporation,isavailable to allcouncilem ployeesand perm itsthem to defera portion of theirsalaries untilfuro re years. N o portion of thisdeferred com pensation is paid by the council. T he other plan, w ith State of Louisiana D eferred Com pensation Plan,isavailable only to those em ployeesw ho are notm em bers of the ParochialEm ployeesretirem entsystem of Louisiana. This plan also perm its eligible councilem ployeesto defer a portion of their salariesuntilfutu re years. The councilpays 7.5 % of the eligible em ployees'salariesinto thisplan. The deferred com pensation of both plansisnotavailable to em ployeesuntilterm ination,retirem ent death,or unforeseeable em ergency.

22 T~mgipahoa Parish Counc Am ite.louisiana N nle~ to FinancialStatem ents (C ontinued A llam ountsof com pensation deferred underthe plans,allproperty and rightspurchased w ith those am ounts,and allincome attributable to those am ounts,property,orrightsare (untilpaid orm ade available to the employee orotherbeneficiary)solely the property and rightsofthe council(without being restricted to the provisionsofbenefitsunderthe plans),subjectonly to the claim softhe council'sgeneralcreditors. Participants'rightsunderthe plansare equalto th ose of generalcreditors of the councilin an am ountequalto the fairm arketvalue of the deferred accountforeach participant. Ofthe $984,592,120 in the Public EmployeesBenefitsService Corporation'splan atdecember31, 1995,$48,583 wasapplicable to the councilwhile the remaining $984,543,537 representsthe assets ofthe otherjurisdictionsparticipating in the plan. O f the $167,114,980 in the State of Louisiana D eferred Com pensation Plan atd ecem ber31,1995, $283,759 wasapplicable to the councilwhile the rem aining $166,831,221representsthe assetsofthe otherjurisdictionsparticipating in the plan. 10. C O M PEN SA TED A BSEN C ES A td ecem ber31,1995,em ployeesof the Tangipahoa Parish Councilhave accum ulated and vested $67,070 of em ployee leave benefits,which wascom puted in accordance w ith GA SB Codification Section C60. Ofthisamount,$10,940 isrecorded asan obligation ofthe GeneralFund,and $46,315 is recorded as an obligation of the SpecialR evenue Funds. The leave liability for em ployees of the Enterprise Fund,in the amountof$1,773,and the InternalService Fund,in the amountof $8,042, is accounted forw ithin the funds. 11. LEA SES The councilrecordsitem sundercapitalleasesasassetsand obligations in the accom panying financial statem ents. A td ecem ber 31,1995,the councilhas 6 capitalleases in effectfor equipm ent. The leaseshave an originalrecorded assetam ountof$746,378. Lease obligationsare retired from the Road and Bridge and G arbage D istrictn o.1 SpecialRevenue Funds. The follow ing isa sum m ary of future m inim um lease paym ents,and the presentvalue of the netm inim um lease paym ents asof D ecem ber 31, 1995: FiscalY ear T otalm inim um lease paym ents Less-am ountrepresenting interest $235, , ,938 (22.359) Presentvalue of netm inim um lease paym ents 37

23 Lkm ite.louisiana Nlnt~g In ]~inant~ialstatem ents (C ontim led The councilhasno m ateriallong-term,noncancelable operating lease com m itm ents atd ecem ber JUD G EM EN T PA Y ABLE O n A pril12,1993,an agreem entw asreached w ith the Tangipahoa Parish Library and Fire Protection D istrictn o.2 regarding the paym entof state revenue sharing funds w ithheld from them by the councilin the years The am ountof$975,473,withoutpastorfu ture interest,isto be paid asfollows The councilw illpay a m inimum of$100,000 peryearto Fire Protection DistrictNo.2 and the TangipahoaParish Library Board ofcontroluntilthe amountof$975,473 ispaid in full.ifmore funds are available during any of these years,the councilreserves the rightto pay a higher figure at itsdiscretion. W hen the $975,473 (plusinterestin the eventofdefault)ispaid in full,the existing judgementagainstthecouncilforthisamountwillbe deemed fulfilled and cancelled atthattime. Fire Protection D istrictn o.2 shallbe paid 63.8% of these funds. The D istrictshallfu rtherallocate these funds to the various fire departm entsaccording to theirregular contractpercentagesw ith Fire Protection D istrictn o.2. Tangipahoa Parish Library Board of Controlshallbe paid 36.2% of these fu nds The annualre-paymentamountof$100,000 shallbe m adein four(4)equalinstallmentspayable on M arch 31,June 30,Septem ber30,and D ecem ber31 of each year,beginning w ith M arch 31,1993. If the councildefaults on any installm ent,legalinterestfrom D ecem ber 8,1987,forw ard w illbe reinstated and w illbe due on the rem aining principalow ed under this agreem ent. D efaultis defined as being m ore than 15 days late w ith any one paym ent. The 1995 repaym entof$100,000 wasrecognized asan expenditure ofthe GeneralFund which left a balance of $675,473 atd ecem ber31,1995,w hich isreported asgenerallong-term debt. 13. PA R ISH JA IL A G R E EM EN T A ct859 of the RegularLegislative Session of 1981 authorized the Louisiana State Bond Com m ission to issue $6,750,000 of generalobligation bondsand reim bursable generalobligation bondsto plan, acquire,and constructanew parish jailin TangipahoaParish. TheTangipahoaParish Council,in agreementwith the Louisiana State Bond Cormnission,agreed to provide 30 percent($2,025,000) ofthe bonded debtovera 20-yearperiod atinterestratesranging from 8.5 to 10.7 percent. 38

24 A m ite.louisiana On M ay 1,1994,the Tangipahoa Parish Sherif 'so fi ce paid of three of the fourgeneralobligation bondsfora totalof $1,553,707. The rem aining bond isto be paid by the Sherif 'so fi ce in annualinstallm ents. The 1995 paym ent w as not rem itted untilafter year-end;therefore,the accom panying financial statem ents reflecta receivable from the Sherif 'sofi ce of$9,796 in the Parish JailFund. 14. R EV EN U E BO N D S PA Y A BLE -SEW E RA G E D ISTR IC T N O.1 O n January 6,1993,Sew erage D istrictn o.l of the Parish of Tangipahoa,State of Louisiana, entered into an agreementwith U.S.Departm entofagriculture,farmershome Administration (now known as RuralEconom ic and Community Development/Farm Service Agency) to finance the costof constructing and acquiring im provem entsand extensionsto itsexisting sew erage system through the issuance of sew er revenue bonds. The sew er revenue bondsw ere issued on M arch 3, 1993,asBond No.R-1in the am ountof$733,000 and Bond No.R-2 in the am ountof$67,000,and were sold to the U nited States of A m erica,farm ers H om e A dm inistration. As of December 31,1995,the Sewerage Districthad drawn down $733,000 on Bond R-1 and $67,000 on Bond R-2,fora totalof$800,000. The bondsbear interestatthe rate of 5 5/8% perannum and are payable m onthly overa forty (40) yearperiod. The monthly paymentforbond R-1is$3,900 and forbond R-2 is$356. The bonds are payable solely from revenues to be derived from the operation of the sew erage system and are secured by such revenues. The annualrequirem ents to am ortize allbonds outstanding as of D ecem ber 31, 1995, interestof $1,090,641are asfollows: including 39

25 A m ite.louisiana N otes to FinancialStatem ents (C ontim led R evenue Bonds Y ear Ending Decem ber31 R-._2 Total $ 46,795 46,795 46,795 46,795 46, , , , , , , ~!, $ 4,277 4,277 4,277 4,277 4,277 21,385 21,385 21,385 21,385 21,385 5,885 $ 51,072 51,072 51,072 51,072 51, , , , , , , $ RE V EN U E BO N D R ESO LU TIO N C O VE N AN TS In the resolution dated January 6,1993,authorizing the issuance of$800,000 ofsewerrevenue Bonds,Sew erage D istrictn o.1 obligated itself to abide by the follow ing covenants: M aintain rates w hich w ill always provide revenues in each year sufficient to pay the reasonable and necessary expensesofoperating and m aintaining the System,the principaland interestm aturing on the bonds,allreserves or sinking funds required for such year and all other obligations and indebtedness of the System. Provide revenues in each year that,after paying allreasonable and necessary expenses of operating and m aintaining the System,at least equal to 120% of the largest am ount of principaland interestm aturing on the bonds in any futu re fiscalyear. Shutoff service if delinquentcharge isnotpaid w ithin 30 days C harge a 10 % penalty on alldelinquentaccounts Charge interestnotlessthan 5% perannum on delinquentaccountsafter 10 daysfrom date of delinquency. Charge a residentialrate of$16.50 perm onth

26 A_m ite.louisiana N otesto FinancialStatem ents (Continued Charge a commercialrate of$30.00 perm onth M aintain the System in firstclass repair and w orking order Carry fullinsurance coverage on the System by a com pany licensed in Louisiana H ave booksaudited no later tban 3 m onthsafterthe end of the fiscalyear D o notsell,lease orin any m annerdispose of the System orany substantialpartthereof D o not create or cause to be created any debt, lien, pledge, m ortgage, assignm ent, encum brance,orany otherchargeshaving priority overorparity w ith the lien of the Bonds upon the incom e and revenues of the System pledged as security therefor. D o notgrantany utility franchises O fficers or em ployees in position of authority or in possession of m oney derived from operation of System m ustbe covered by a blanketfidelity or faithfu lperform ance bond. Establish and m aintain the follow ing reserve accounts a) Sinking Fund -depositon orbefore the 20th day ofeach m onth 1/12 of the interest falling due on the nextinterestpaym entdate during the firsttw o years the Bonds are outstanding and,thereafter,a sum equalto the totalam ountof principal and interest falling due on the nextprincipaland interestpaym entdate. b) Reserve Fund -depositon orbefore the 20th day ofeach m onth,com mencing with the mouth following completion of the project,a sum atleastequalto five percent(5%)of the am ountto be paid into the Sinking Fund;these depositsshallcontinue untilsuch tim e asthere hasbeen accum ulated a sum equalto the highestcom bined principaland interest falling due in any yearon the Bonds. c) Contingency Fund -depositon orbefore the 20th day ofeach m onth the sum of $203 N o free services or facilities shallbe furnished to any persons,association of persons,or corporation,public orprivate,oreven to the Issueritself. N o officers or em ployees ofsew erage D istrictn o.1 are covered by a blanketfidelity or faithful perform ance bond.

27 Tangipahoa Parish Couoq Am ite.louisiana N ote~ Io FinancialNIzlernt~nt~ (C'nntinn~.d Sewerage DistrictNo.1had a netoperating lossof$12,192 forthe yearended December31, 1995, and therefore isconsidered notto be in com pliance w ith the requirem ents to m aintain sufficientrates and provide required revenues. A lso,service is shutoffafter60 ratherthan 30 days, and the books w ere audited later than three m onths after the end of the fiscalyear. Farm ers'h om e A dm inistration did notrequire th e establishm entof a Sinking Fund. The D istrictm et the requirem entsof the C ontingency Fund buthasnotestablished a Reserve Fund. The D istrictallow ed som e persons on the recently com pleted V elm a sew erage system to receive services w ithoutpaym ent. 16. CH AN G ES IN G EN ER AL LO N G -TERM O BLIG A TIO N S The follow ing isa sum m ary of the long-term obligation trans actions for th e year ended D ecem ber : Long-Term O bligations Payable 01/01/95 A dditions Long-Term O bligations Payable 12/31/95 GeneralObligation Bonds $1,409,651 $ - $336,790 $1,072,861 FederalLoan 7,787 7,787 C apitalleases 519, , ,579 Judgem entpayable 775, , ,473 E stim ated L iability for Landfill C losure and Postclosure C are Costs Total $3.787,676 $5.960 $

28 ~m ite,louisiana N otes to FinancialStatem ents (C ontinued G eneralobligation bondsarc com prised of the follow ing individualissues $60,000 -issue of1982 to constructa new parish jailfacility,duein annualinstalmentsof$9,796 through D ecem ber 1,2002,w ith interestof10.7 percent. D ebtretirem entpaym entsare m ade by the Tangipahoa Parish Sheriff's O ffice. 37,861 Road D istricts $275,000 -issue of1976 to open,constru ct,and improve public roads,highw ays,and bridgesw ithin D istrictn o. 101,due in annualinstallm entsof$5,000 to $25,000 through D ecem ber 15, 1996,w ith interestat6.0 percent. D ebtretirem entpaym ents are m ade from the R oad D istrict N o. 101 D ebtservice Fund. $275,000 -issue of 1976 to open,constru ct,and im prove public roads,highw ays,and bridgesw ithin Sub-Road D istrictn o.1 of D istrictn o.101,due in annual installm entsof $5,000 to $25,000 through D ecem ber ,w ith interestat6.0 percent. D ebtretirem ent paym entsare m ade from the Sub-Road N o.1 of Road D istrictn o.101 D ebtservice Fund ,000 G eneralservice D istricts $200,000 -issue of 1984 to constructand im prove public roads,highw ays,and bridgesw ithin Sub-D istrictn o.4a due in annualinstallm entsof$5,000 to $20,000 through June 1,2004,w ith interestranging from 9.7 to 11.0 per cent. D ebtretirem entpaym ents are m ade from the G eneralservice Sub-D istrictn o.4a D ebtservice Fund. 100,000 $900,000 -issue of1984 to constru ct,m aintain,and im prove public roads,highw ays,and bridgesw ithin Sub-D istrict N o.5,due in annualinstallm entsof $5,000 to $110,000 through June 1,2004,w ith interestranging from 9.7 to 11.0 percent. D ebtretirem entpaym entsare m ade from the G eneralservice Sub-D istrictn o.5 D ebtservice Fund. 405,000 43