comprehensive annual financial report - City of St. Petersburg

CITY OF ST. PETERSBURG, FL
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – (Continued)
Jointly Governed Organization - Tampa Bay Water Authority (TBWA): The TBWA was
organized in 1998, by an inter-local agreement pursuant to Chapter 98-402 of the Florida Statutes
between the counties of Hillsborough, Pasco and Pinellas and the cities of St. Petersburg, New
Port Richey, and Tampa, Florida (the members). The purpose of the Authority is to develop
regional water supplies and to supply water to its members at a wholesale price. The TBWA is
the reorganized West Coast Regional Water Supply Authority with a governing board of nine
voting members, two from each of the county governments and one from each of the city
governments. The City of St. Petersburg for the fiscal year ended September 30, 2010, had a
related party transaction with the TBWA as follows: The City paid $26,794,757 for water
purchases, and received $998,964 in interest and $674,810 of principal on the TBWA contract
receivable. The remaining principal in the TBWA contract receivable is $19,566,500.
B. Government-Wide and Fund Financial Statements
The basic financial statements consist of the government city-wide financial statements and fund financial
statements. Both sets of statements distinguish between the governmental and business-type activities of
the City.
Government financial statements include a Statement of Net Assets and a Statement of Activities. These
statements report on the government as a whole, both the primary government and its component units,
and provide a consolidated financial picture of the government. As part of the consolidation process,
inter-fund activities are eliminated to avoid distorted financial results. The amounts reported as internal
balances represent the residual amounts due between governmental and business-type activities.
Fiduciary funds of the government are not included in this presentation since these resources are not
available for general government funding purposes. The Statement of Net Assets reports all financial and
capital resources of St. Petersburg’s governmental and business-type activities. It is presented in a net
assets format (assets less liabilities equal net assets) and shown with three components: amounts
invested in capital assets, net of related debt; restricted net assets and unrestricted net assets. The
Statement of Activities reports functional categories of programs provided by the City and demonstrates
how and to what degree those programs are supported by specific revenues.
Program revenues are classified into three categories: charges for services, operating grants and
contributions and capital grants and contributions. Charges for services refer to direct recovery from
customers for services rendered. Grants and contributions refer to revenue restricted for specific
programs whose use may be restricted further to operational or capital items. The general revenues
sections displays revenues collected that help support all functions of the government.
The fund financial statements follow and report additional and detailed information about the City of St.
Petersburg’s operations for major funds individually and nonmajor funds in the aggregate for
governmental, proprietary and fiduciary funds. A reconciliation is provided that converts the results of
governmental fund accounting to the government wide presentation.
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