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VILLAGE OF TEQUESTA COUNCIL MEMBERS 2017
From left to right: Council Member Thomas Paterno, Council Member Vince Arena,
Mayor Abby Brennan, Vice -Mayor Frank D'Ambra, Council Member Steve Okun
VILLAGE OF TEQUESTA, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Prepared By
Finance Department
The Village of Tequesta, Florida
VILLAGE OF TEQUESTA, FLORIDA
TABLE OF CONTENTS
I. INTRODUCTORY SECTION
Letter of Transmittal i -iii
Certificate of Achievement for Excellence in Financial Reporting iv
Organization Chart v
List of Principal Officials vi
II. FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT 1-3
MANAGEMENT'S DISCUSSION AND ANALYSIS (Required Supplementary Information) 4-18
BASIC FINANCIAL STATEMENTS
Government -Wide Financial Statements
97
Statement of Net Position
19
Statement of Activities
20
Fund Financial Statements
99
Balance Sheet — Governmental Funds
21
Reconciliation of the Balance Sheet of Governmental Funds to the
101
Statement of Net Position
22
Statement of Revenues, Expenditures and Changes in Fund Balances
102
Governmental Funds
23
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
104
Balances of Governmental Funds to the Statement of Activities
24
Statement of Net Position Proprietary Funds
25
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
26
Statement of Cash Flows Proprietary Funds
27
Statement of Fiduciary Net Position Fiduciary Funds
28
Statement of Changes in Fiduciary Net Position Fiduciary Funds
29
Notes to Basic Financial Statements
30-96
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule General Fund
97
Note to the Budgetary Comparison Schedule
98
Firefighters' Pension Trust Fund
Schedule of Changes in the Village's Net Pension Liability and Related Ratios
99
Schedule of Village Contributions
100
Schedule of Investment Returns
101
Police Officers' Pension Trust Fund
Schedule of Changes in the Village's Net Pension Liability and Related Ratios
102
Schedule of Village Contributions
103
Schedule of Investment Returns
104
General Employees' Pension Trust Fund
Schedule of Changes in the Village's Net Pension Liability and Related Ratios
105
Schedule of Village Contributions
106
Schedule of Investment Returns
107
Schedule of Funding Progress - Other Post Employment Benefits
108
Schedule of Village's Proportionate Share of the Net Pension Liability
Florida Retirement System Pension
109
Schedule of the Village's Proportionate Share of the Net Pension Liability
Retiree Health Insurance Subsidiary Program
110
Schedule of the Village's Contributions Florida Retirement System Pension Plan
111
Schedule of the Village's Contributions Retiree Health Insurance Subsidy Program
112
VILLAGE OF TEQUESTA, FLORIDA
TABLE OF CONTENTS
II. FINANCIAL SECTION (CONTINUED)
SUPPLEMENTARY INFORMATION
120
Combining and Individual Fund Statements and Schedules
121-122
Combining Balance Sheet Nonmajor Governmental Funds
113
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
124
Nonmajor Governmental Funds
114
Budgetary Comparison Schedule Special Law Enforcement Trust Fund
115
Budgetary Comparison Schedule Capital Improvement Fund
116
Budgetary Comparison Schedule Capital Projects Fund
117
Combining Statement of Fiduciary Net Position
118
Combining Statement of Changes in Fiduciary Net Position
119
III. STATISTICAL SECTION
Net Position by Component
120
Changes in Net Position
121-122
Fund Balances, Governmental Funds
123
Changes in Fund Balances, Governmental Funds
124
Assessed and Estimated Actual Value of Taxable Property
125
Property Tax Rates — All Direct and Overlapping Governments
126
Principal Property Taxpayers
127
Property Tax Levies and Collections
128
Ratios of Outstanding Debt by Type
139
Ratio of Net Outstanding Debt to Assessed Value and Net Bonded Debt
Per Capita
130
Computation of Legal Debt Margin
131
Direct and Overlapping Governmental Activities Debt
132
Pledged -Revenue Coverage Revenue Bonds - 1994
133
Demographic and Economic Statistics
134
Principal Employers Palm Beach County
135
Full -time -Equivalent Village Government Employees by Function/Program
136
Operating Indicators by Function/Program
137
Capital Asset Statistics by Function/Program
138
IV. REPORTING SECTION
Independent Auditors' Report on Compliance and on Internal Control over Financial
Reporting and on Compliance and Other Matters based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards 139-140
Management Letter in Accordance with the Rules of the Auditor General of the
State of Florida 141-142
Independent Accountants' Report On Compliance Pursuant To Section 218.415
Florida Statutes 143
March 29, 2018
To the Honorable Mayor,
Members of the Village Council
And Citizens of the Village of Tequesta, Florida
345 Tequesta Drive
Tequesta, FL 33469-0273
(561) 768-0424
www. Tegaresta. org
Florida law requires that every general purpose local government publish, within nine months of the close of each
fiscal year, a complete set of audited financial statements. This report is published to fulfill that requirement for
the fiscal year ended September 30, 2017.
Management assumes full responsibility for the completeness and reliability of the information contained in this
report, based upon a comprehensive framework of internal control that it has established for this purpose. Because
the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather
than absolute, assurance that the financial statements are free of any material misstatements.
Marcum LLP, Certified Public Accountants, have issued an unmodified ("clean") opinion on the Village of
Tequesta's financial statements for the fiscal year ended September 30, 2017. The independent auditors' report is
located at the front of the financial section of this report.
Management's discussion and analysis (MD&A) immediately follows the independent auditors' report and
provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements
this letter of transmittal and should be read in conjunction with it.
PROFILE OF THE VILLAGE OF TEQUESTA
The Village of Tequesta, Florida (the Village) is a municipal corporation organized June 4, 1957 pursuant to
Special Act 57-1915, Laws of Florida. It is approximately 2 square miles and is located in northern Palm Beach
County, Florida. It is almost completely built-out/developed.
The Village's growth potential is restricted by the natural boundaries of the Atlantic Ocean to the east, the
Loxahatchee River to the west, the Town of Jupiter to the south and Martin County to the north. It is empowered
by state statute to extend its corporate limits by annexation, which it has done from time to time.
The Village has a Council -Manager form of government. Policy-making and legislative authority are vested in
an elected governing body of the Village consisting of a five -member Village Council. Council members are
elected at large and select a Mayor at their first organizational meeting each year. Council members serve two-
year terms, with three members elected every other year. The Village Council appoints the Village of Tequesta's
manager, who is responsible for hiring all Village employees.
The Village provides a full range of services, including police and fire protection; building inspections; licenses
and permits; the construction and maintenance of streets and other infrastructure, recreational and cultural
activities, water services, storm water operations and contracts for residential refuse and recycling services.
The Council is required to adopt an initial budget prior to the beginning of the fiscal year October 1. This annual
budget serves as the foundation for the Village of Tequesta's financial planning and control. The budget is
prepared by fund, function (e.g., public safety), and department (e.g., police) and is adopted by fund total.
Departments may transfer resources within a department with the approval of the budget officer and the Village
Manager. Transfers between departments require budget amendments be approved by the Village Council, while
changes to the total fund budget requires approval of the Village Council by resolution.
Local Economy
The Village, located in Palm Beach County, is the third most populous county in the State of Florida
(approximately 1.44 million). The latest population estimate prepared by the Bureau of Economic and Business
Research, University of Florida indicates that current population of the Village of Tequesta is 5,731. Tequesta is
home to middle to upper-income suburban families; has a small commercial area and no major industries located
within its boundaries. It is home to a number of assisted living facilities, private schools and a high-end treatment
center.
According to the Bureau of Labor Statistics, U.S. Department of Labor, over the past year, 43 states, including
Florida, had job growth from a year earlier. The national unemployment rate for September 2017 was 4.7% with
the unemployment rate in Florida at 4.6%. The unemployment rate for Palm Beach County at the fiscal year end
was 3.7%. According to analysis by Florida TaxWatch and CarcerSource Palm Beach County, "...candidates are
leaving existing jobs for better positions and those who have been out of the labor force are returning to
employment" which indicates economic growth.
According to the U.S. Census Bureau, the median household income for Tequesta was $54,730 which continues
to be significantly higher than Florida as a whole ($48,900). Tequesta continues to see a positive change in the
housing market as property values continue to increase, another indicator of a growing economy. Per the Palm
Beach County Property Appraiser's Office, gross taxable value for calculating ad valorem proceeds increased
from $930 million during fiscal year 2016 to $1.020 billion used to calculate 2017 revenues. Based upon these
indicators, the Village is developing its operating budget with the expectation that the economy will continue to
improve and that there will be a steady increase in property values over the next few years.
Long -Term Financial Planning and Major Initiatives
The continued goal of the Village is to maintain a consistently high quality of services to the residents, while
protecting the assets, the level of service and the quality of life that the residents have come to expect. It is the
result of hard work by the Village staff, and fiscally sound, responsible decisions by the Village Council that
allows the Village to meet service demands while minimizing the financial burden on its residents. The Village is
very fortunate to have a citizenry that is active on many boards and committees, a working staff that has shown
its willingness to take on additional responsibilities, an expanded workload and very importantly, a Village
Council that is very responsive to the needs of the residents and staff and who donate so much of their time to this
community.
The Village's primary focus is providing exceptional municipal services to its residents in the most efficient and
cost effected manner possible. Continued economic challenges require innovative approaches on both sides of the
balance sheet. Efforts to expand contractual services to generate additional revenue should continue to be
considered.
11
The Village continues researching ways to control the growing cost of health care and post-retirement benefits
and has implemented changes and negotiated concessions with the current bargaining units. The Village continues
to discuss options with the three collective bargaining units to control the cost of post-retirement benefits.
MAJOR INITIATIVES
• Continue to explore alternative revenue sources, at both the state and federal level, with the
assistance of a professional Iobbyist.
• Continue to find ways to reduce the cost of health care and retirement costs.
• Implement a 6 -year capital improvement /capital replacement plan.
• To keep on track with maintenance and improvements outlined in a utility revenue sufficiency and
rate adequacy study to meet the Village's objectives for a sustained high quality utility service by
providing a stable funding plan.
• Develop plans and specifications for the construction of the new Community Center.
• Implement 5 -year automatic read meters and technology for the Village Water Utility.
Relevant financial Policies
The Village has adopted a comprehensive set of financial policies. The Village implemented new ERP software
in August of 2017. This implementation has allowed Department Heads to have more information in real time to
control their budgets. It has streamlined the financial process and moved the Village closer to a paperless
organization.
AWARDS AND ACKNOWLEDGEMENTS
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in
Financial Reporting to the Village for its comprehensive annual financial report for the fiscal year ended
September 30, 2016. This was the thirty-fourth consecutive year that the Village has received this prestigious
award. The Village must publish an easily readable and efficiently organized comprehensive annual financial
report. This report satisfied both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year. We believe that our current comprehensive annual
financial report will continue 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 would not have been possible without the efficient and dedicated services of the
entire staff of the Village's finance department. We would like to express our appreciation to all members of the
department who assisted and contributed to the preparation of this report.
In closing, we must also acknowledge the Mayor and Council for their unfailing support for maintaining the
highest standards of professionalism in the management of the Village's finances.
Respectfully submitted,
Michael R. Couzzo, Jr.
Village Manager
C�26A
Finance Director
III
IV
VILLAGE OF TEQUESTA, FLORIDA
ORGANIZATION CHART
SEPTEMBER 30, 2017
VILLAGE OF TEQUESTA, FLORIDA
LIST OF PRINCIPAL OFFICIALS
Abby Brennan
Frank D'Ambra
Steve Okun
Thomas Paterno
Vince Arena
SEPTEMBER 30, 2017
VILLAGE COUNCIL
VILLAGE OFFICIALS
Michael R. Couzzo, Jr.
Corbett, White, Davis & Ashton, PA
Lori McWilliams, MMC
Christopher Quirk, CPA
Joel Medina
Christopher L. Elg
NZ Consultants, Inc.
Jose Rodriques
Michael R. Couzzo, Jr.
Greg Corbitt
Merlene Reid, MS, SPHR
Mayor
Vice -Mayor
Councilmember
Councilmember
Councilmember
Village Manager
Village Attorney
Village Clerk
Finance Director
Fire Chief
Police Chief
Planning and Zoning Director
Acting Building Official
Utilities/Public Works Director
Parks and Recreation Director
Human Resources Director
VILLAGE INDEPENDENT AUDITORS
Marcum LLP
vi
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT
MARCUM
ACCOUNTANTS y ADVISORS
INDEPENDENT AUDITORS' REPORT
To The Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, each major fund, and the aggregate remaining fund information of the
Village of Tequesta, Florida (the Village) as of and for the fiscal year ended September 30, 2017
and the related notes to the financial statements, which collectively comprise the Village's basic
financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud and error.
Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors'
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the entity's preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity's internal control.
Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
IN I
MARCUMGROUP
MEMBER
Marcum LLP 525 Okeechobee Boulevard ■ Suite 750 ■ West Palm Beach, Florida 33401 ■ Phone 561.653.7300 ■ Fax 561.653.7301 marcumllp.com
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major
fund, and the aggregate remaining fund information of the Village of Tequesta, Florida as of
September 30, 2017 and the respective changes in financial position and, where applicable, cash
flows thereof for the fiscal year then ended in accordance with accounting principles generally
accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis and the budgetary comparison schedule, schedules of
changes in net pension liability (assets) and related ratios, contributions, investment returns,
funding progress, proportionate share of the net pension liability — Florida Retirement System
Pension and Retiree Health Insurance Subsidy Program on pages 4-18 and 97-112 be presented to
supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board who considers
it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency
with management's responses to our inquiries, the basic financial statements, and other knowledge
we obtained during our audit of the basic financial statements. We do not express an opinion or
provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Village's basic financial statements. The combining and individual fund
statements and schedules, the introductory and statistical sections are presented for purposes of
additional analysis and are not a required part of the basic financial statements.
2
The combining and individual fund statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other
records used to prepare the basic financial statements. Such information has been subjected to
the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements or to the
basic financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the
combining and individual fund statements and schedules are fairly stated, in all material respects,
in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements, and accordingly, we do not express an
opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March
29, 2018 on our consideration of the Village's internal control over financial reporting and on
our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is solely to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on the effectiveness of the Village's internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering Village's internal control over financial
reporting and compliance.
°y lc L L?
West Palm Beach, Florida
March 29, 2018
3
MANAGEMENT'S DISCUSSION AND ANALYSIS
(MD&A)
Management's Discussion and Analysis 2017
Village of Tequesta, Florida
Management's Discussion and Analysis
As management of the Village of Tequesta, we offer readers of the Village's financial statements this
narrative overview and analysis of the financial activities of the Village for the fiscal year ended September
30, 2017. We encourage readers to consider the information presented here in conjunction with the
additional information that we have furnished in the letter of transmittal found on pages i to iii of this report.
Financial Highlights
• The assets and deferred outflows of resources of the Village of Tequesta exceeded its liabilities and
deferred inflows of resources at the close of the most recent fiscal year by $31,919,629. Of total net
position, 22.1% ($7,040,985) is unrestricted and may be used to meet the ongoing obligations to the
citizens and creditors.
• The Village of Tequesta's total net position increased during the current period. Governmental
activities changed net position by $53,722. The business -type activities net position increased by
$523,260 due mainly to the increase in water usage.
• At the close of the current fiscal year, the Village of Tequesta's governmental funds reported a
change in combined fund balances of $(26,622).
• At the end of the current fiscal year, unrestricted fund balance (the total of the committed, assigned,
and unassigned components of fund balance) reported in the general fund was $2,692,943.
• The Village of Tequesta's total outstanding noncurrent liabilities decreased $(858,647) due mainly to
current year principal payments.
• The Village did not expend $750,000 or more in federal awards or state financial assistance in the
fiscal year ended September 30, 2017 and therefore did not meet the threshold for a single audit
according to the Florida Single Audit Act (section 215.97 F.S.) or OMB Uniform Guidance.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Village of Tequesta's basic
financial statements. The Village's basic financial statements consist of three components: 1)
government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements.
This report also includes supplementary information intended to furnish additional detail to support the basic
financial statements themselves.
Government -wide Financial Statements: The government -wide financial statements are designed to provide
readers with a broad overview of the Village of Tequesta's finances, in a manner similar to a private -sector
business.
The statement of net position presents financial information on all of the Village of Tequesta's assets,
liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over
time, increases or decreases in net position may serve as a useful indicator of whether the financial position
of the Village of Tequesta is improving or deteriorating.
ALI
Management's Discussion and Analysis 2017
The statement of activities presents information showing how the Village of Tequesta's net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cashflows. Thus, revenues and expenses
are reported in this statement for some items that will result in cash flows in future fiscal periods (e.g.,
uncollected taxes and earned but unused vacation leave).
Both of the government -wide financial statements distinguish functions of the Village of Tequesta that are
principally supported by taxes and intergovernmental revenues (governmental activities) from other functions
that are intended to recover all or a significant portion of their costs through user fees and charges
(business -type activities). The governmental activities of the Village includes general government, public
safety, transportation and leisure services. The business -type activities of the Village includes water,
stormwater and refuse and recycling.
The government -wide financial statements can be found on pages 19-20 of this report.
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The Village of Tequesta, like other
state and local governments, uses fund accounting to ensure and demonstrate compliance with finance related
legal requirements. All of the funds of the Village of Tequesta can be divided into three categories:
governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds. Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government -wide financial statements. However, unlike the government -wide
financial statements, governmental fund financial statements focus on near-term inflows and ou flows of
spendable resources, as well as on balances of spendable resources available at the end of the fiscal year.
Such information may be useful in assessing a government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial statements,
it is useful to compare the information presented for governmental funds with similar information presented
for governmental activities in the government -wide financial statements. By doing so, readers may better
understand the long-term impact of the government's near-term financing decisions. Both the governmental
fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund
balances provide a reconciliation to facilitate this comparison between governmental funds and governmental
activities.
The Village of Tequesta maintains four individual governmental funds. Information is presented separately
in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures,
and changes in fund balance for the General Fund which is considered a major fund. Data from the other
three governmental funds is combined into a single aggregated presentation. Individual fund data for each of
these non -major governmental funds is provided in the form of combining statements in the combining and
individual fund statements and schedules section of this report.
The Village of Tequesta adopts an annual appropriated budget for its governmental funds. A budgetary
comparison statement has been provided for the general fund to demonstrate compliance with this budget.
The Village of Tequesta's governmental fund financial statements can be found on pages 21-24 of this report.
Proprietary Funds. The Village of Tequesta maintains one type of proprietary fund — enterprise funds.
Enterprise funds are used to report the same functions presented as business -type activities in the
government -wide financial statements. The Village of Tequesta uses enterprise funds to account for its
water, stormwater, and refuse and recycling funds.
Management's Discussion and Analysis 2017
Proprietary funds provide the same type of information as the government -wide financial statements, only in
more detail. The proprietary fund financial statements provide separate information for the Water fund and
the Stormwater Fund, major funds, as well as the Refuse and Recycling fund, a nonmajor fund.
The basic proprietary fund financial statements can be found on pages 25-27 of this report.
Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the
Village. Fiduciary funds are not reported in the government -wide financial statement because the resources
of those funds are not available to support the Village's own programs. The accounting used for fiduciary
funds is much like that used for proprietary funds.
The Village of Tequesta maintains one type of fiduciary fund — a Pension trust fund which is used to report
resources held in trust for retirees and beneficiaries covered by the Public Safety Pension Plan (which
includes the Firefighters' Pension Trust Fund and the Police Officers' Pension Trust Fund) and the General
Employees' Pension Plan.
The fiduciary fund financial statements can be found on pages 28-29 of this report.
Notes to basic financial statements: The notes provide additional information that is necessary to acquire a
full understanding of the data provided in the government -wide and fund financial statements. The notes to
the basic financial statements can be found on pages 30-96 of this report.
Other information: In addition to the basic financial statements and accompanying notes, this report also
presents certain required supplementary information concerning the Village of Tequesta's progress in
funding its obligation to provide pension benefits and OPEB benefits to its employees, as well as the
Village's net pension liability (assets) and related ratios, contributions and pension investment returns.
Required supplementary information can be found on pages 97-112 of this report.
The combining statements referred to earlier in connection with non -major governmental funds and fiduciary
funds are presented immediately following the required supplementary information on pensions and OPEB.
Combining and individual fund statements and schedules can be found on pages 113-119 of this report.
Government -wide Overall Financial Analysis
Net position over time, may serve as a useful indicator of a government's financial position. In the case of
the Village of Tequesta, assets and deferred outflows of resources exceeded liabilities and deferred inflows at
the close of the most recent fiscal year. This change is discussed below.
Village of Tequesta's Total Net Position
The Village of Tequesta's total assets and deferred outflows exceeded total liabilities and deferred inflows by
$31,919,629 at the close of the 2017 fiscal year. Net Position in governmental activities recorded a change of
0.42%. The Village's business -type activities recorded a 2.84% change in total net position. The majority of
this change was due to a change of current and other assets by $(40,839) and investment in capital assets of
$832,043.
'urrent and other assets
'apital assets, net
Total assets
'otal deferred outflows of
resources
Management's Discussion and Analysis
2017
S 6,257,700 S 5,969,662 S 6,551,983 S 6,627,007 S 12,809,683 S 12,596,669
12,098,060 12,463,825 17,065,712 17,014,504 29,163,772 29,478,329
18,355,760 18,433,487 23,617,695 23,641,511 41,973,455 42,074,998
1,801,913 1,419,601 536,853 487,159 2,338,766 1,906,760
oncurrent liabilities
5,176,601
5,673,775
4,666,268
5,027,741
9,842,869
10,701,516
ther liabilities
826,333
572,304
375,852
532,365
1,202,185
1,104,669
Total liabilities
6,002,934
6,246,079
5,042,120
5,560,106
11,045,054
11,806,185
Dtal deferred inflows ofresources
1,197,025
703,017
150,513
129,909
1,347,538
832,926
et position
et investment in
capital assets
10,023,291
9,948,379
13,078,584
12,321,453
23,101,875
22,269,832
estricted
1,776,769
1,343,543
-
-
1,776,769
1,343,543
nrestricted
1,157,654
1,612,070
5,883,331
6,117,202
7,040,985
7,729,272
Total net position S
12,957,714 S
12,903,992 S
18,961,915 S
18,438,655 S
31,919,629 S
31,342,647
The largest portion of the Village's total net position (72.4%) represents investments in capital assets (e.g.,
land, buildings, machinery and equipment), less any related outstanding debt and deferred inflows/outflows
used to acquire those assets. The Village uses these capital assets to provide services to citizens;
consequently, they are not available for future spending. Although the Village's investment in its capital
assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be
provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
An additional portion of the Village of Tequesta's net position (4.9%) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of $7,040,985 is unrestricted and may
be used to meet the government's ongoing obligations to its citizens and creditors.
At the end of the current fiscal year, the Village of Tequesta is able to report positive balances in all
categories of net position, both for the government as a whole, as well as for its separate governmental and
business -type activities. The same situation held true for the prior fiscal year.
VA
Management's Discussion and Analysis 2017
Restricted
Unrestricted
Net Investinents in
capital assets
Village of Tequesta
Net Position
$- $10,000,000 $20,000,000 $30,000,000
■2016
■201-
-ogram Revenues:
Charges for Services
Operating Grants & Contributions
eneral Revenues:
Ad valorem Taxes
Other Taxes
Franchise fees on gross receipts
Unrestricted intergovernmental
Unrestricted investment earnings
Gain on sale of capital assets
Other Miscellaneous
Total Revenue
General government
Public safety
Transportation
Leisure Services
hiterest expense/other fiscal charges
Water utility services
Stormwater services
Refuse & recycling services
otal Expenses
ease (decrease) in net position
position - beginning
position - ending
Management's Discussion and Analysis
Village of Tequesta's Changes in Net Position
2017
$ 2,725,162 $ 2,618,282 $ 6,321,176 $ 5,642,301 $ 9,046,338 $ 8,260,583
33,892 83,333 - 33,892 83,333
6,098,723
5,683,707
6,098,723
5,683,707
1,512,354
1,271,278
1,512,354
1,271,278
452,496
449,126
452,496
449,126
830,570
822,390
830,570
822,390
15,605
8,465
28,064 14,601 43,669
23,066
9,336
9,336
663,524
32,676
50,164
30,796 25,408 63,472
75,572
11,710,814
10,986,745
6,380,036 5,682,310 18,090,850
16,669,055
2;201,162
1,918,843
2,201,162
1,918,843
7,004,196
7,270,731
7,004,196
7,270,731
1,650,162
1,381,760
1,650,162
1,381,760
690,068
663,524
690,068
663,524
111,504
117,709
194,583
225,335
306,087
343,044
-
-
4,844,157
4,501,514
4,844,157
4,501,514
-
338,758
490,405
338,758
490,405
-
479,278
489,874
479,278
489,874
11,657,092
11,352,567
5,856,776
5,707,128
17,513,868
17,059,695
53,722 (365,822) 523,260 (24,818) 576,982 (390,640
$ 12,903,992 $ 13,269,812 $ 18,438,655 $ 18463475 $ 31,342,647 $ 31,733,287
$ 12,957,714 $ 12,903,990 $ 18,961,915 $ 18,438,657 $ 31,919,629 $ 31,342,647
For fiscal year ending September 30, 2017, the Village of Tequesta's overall net position increased from the
prior fiscal year. While revenues increased in both governmental activities and business -type activities
revenues exceeded expenses for FYE 9-30-2017 by $576,982. Revenues increased in business -type activities
due mainly to an increase in water rates. As mentioned above, the largest changes were due to an increase in
pension expense (NPL) and consumption of capital assets.
Governmental Activities - Expenses and Program Revenues
Governmental activities. Overall program revenues increased from the prior year due to increases in
property values and permit fees allowing for an overall increase in net position of $53,722.
X
Management's Discussion and Analysis 2017
Expenses and Program Revenues - Governmental Activities
in Thousands
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
■ Revenues ■ Expenses
The Village's programs/functions include General Government, Public Safety, Transportation and Leisure
Services. The net cost shows the extent to which the Village's general revenues support each of the Village's
programs/functions. The net cost of all governmental activities this year was $8,898,038, a 3% increase from
the prior period. The largest increase in net cost was from the function of transportation which increased
$268,402 (19%). As shown on the Statement of Activities, the functions directly benefiting from the
programs generated revenue of approximately $2.8 million with $8.9 million financed through general
revenues.
10
Management's Discussion and Analysis 2017
The following is a comparison of revenues by source for governmental activities for fiscal year 2017 and
2016.
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
Revenues by Source - Governmental Activities
in Thousands
z
Business -type Activities. The Village of Tequesta's business -type activities reported operating revenues
exceeding expenses by $-. Non-operating revenues were $58,860. This resulted in a change in net position of
$523,260 from the prior year.
11
Management's Discussion and Analysis 2017
Total Revenues/Expenses - Business -Type Activities
in Thousands
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
Water Utility Refuse & Recycling Stoixnwater Utility
■ Revenue ■ Expenses
As shown in the chart below, revenues from charges for services reported in business -type activities
increased $678,875 from the prior year. Increased rates in the Water Utility resulted in increased revenues of
9% ($660,810) from the prior year. Refuse and Recycling and Stormwater Utility reported smaller increases
in revenues (1% and 4%). Non-operating income includes investment earnings which doubled, as well as
miscellaneous revenue from payments for the construction portion of the Tropic Vista water extension.
Revenues by Source - Business -Type Activities
in Thousands
$7,000
$6,000
$5,000
$4,000 2016
$3,000
$2,000
2017 2016
$1,000
$0
Charges for Services Noll -operating
12
Management's Discussion and Analysis 2017
Financial Analysis of the Village's Funds
As noted earlier, the Village of Tequesta uses fund accounting to ensure and demonstrate compliance with
finance -related legal requirements.
Governmental funds: The focus of the Village's governmental funds is to provide information on near-term
inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Village's
financing requirements. In particular, unassigned fund balance may serve as a useful measure of a
government's net resources available for discretionary use as they represent the portion of fund balance
which has not yet been limited to use for a particular purpose by either an external party, the Village of
Tequesta itself, or a group or individual that has been delegated authority to assign resources for use for
particular purposes by the Village of Tequesta's Council.
At September 30, 2017 the Village of Tequesta's governmental funds reported total combined fund balances
of $4,741,903. $1,478,525 (31 %) of the combined governmental fund balances is unassigned and is available
for spending at the Village's discretion. Approximately 27% is assigned with the largest portion ($1 million)
assigned for hurricane/disaster emergency. Approximately $1.8 million is restricted for a particular purpose
(i.e. debt service, Law Enforcement Trust funds, etc.). $212,042 is in nonspendable form (i.e. inventories,
prepaid items, etc.). Total combined fund balances have increased 0.56% from the prior year.
2016
2017
Governmental Funds
Components of Fund Balance
September 30, 2017 and 2016
$0 $500,000 $1,000,000$1,500,000$2,000,000$2,500,000
Non spendable
■ Restricted
■ Assigned
■ Unassigned
13
Management's Discussion and Analysis 2017
The General Fund is the chief operating fund of the Village of Tequesta. At the end of the current fiscal year
total fund balance was $4,345,896, an increase of $35,634 from the prior year. Unassigned fund balance of
$1,478,525, decreased 29% from the prior year. As a measure of the General Fund's liquidity, it may be
useful to compare both unassigned fund balance and total fund balance to total fund expenditures.
Unassigned fund balance represents approximately 13% of fiscal year 2016 General Fund expenditures and
total fund balance represents approximately 38% of total expenditures. The Village of Tequesta adopted a
policy to keep unassigned fund balance at a minimum of two months (17%) of expenditures.
2016
2017
General Fund
Components of Fund Balance
September 30, 2017 and 2016
$0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000
Nonspendable.
■ Restricted
■ Assigned
■ Unassigned
14
Management's Discussion and Analysis
2017
The amount of General Fund revenue by type, their percent of the total and the amount of change compared
to last fiscal year are shown in the following schedule:
General Fund Revenues -by Source
valorem taxes
$ 6,098,723
ier taxes
1,512,354
urges for services
1,272,994
;rgovernmental
836,780
agovernmental
561,350
nchise fees
452,496
enses and permits
646,126
its and Royalties
203,965
es and forfeitures
32,743
;c., grants and contributions
68,342
estment earnings
15,605
Total Revenue
$ 11,701,478
52.1%
$ 415,016
7.3%
12.9%
241,076
19.0%
10.9%
26,693
2.1%
7.2%
10,790
1.3%
4.8%
11,000
2.0%
3.9%
3,370
0.8%
5.5%
91,535
16.5%
1.7%
5,283
2.7%
0.3%
(23,201)
-41.5%
0.6%
(39,780)
-36.8%
0.1%
7,140
84.3%
100%
$ 748,922
6.8%
$ 5,683,707
1,271,278
1,246,301
825,990
550,350
449,126
554,591
198,682
55,944
108,122
8.465
$ 10,952,556
As noted in the table above, total General Fund revenues increased $748,922 (6.8%). The two largest
increases were due to: 1) increased property values resulting in increased revenue from ad valorem taxes and
2) increased permit fees which is indicative of the cyclical nature of this revenue.
Expenditures in the General Fund are shown in the following schedule:
Public Safety $
6,630,534
57.3%
$ 476,225
7.7%
$ 6,154,309
General government
2,104,039
18.2%
292,262
16.1%
1,811,777
Transportation
1,306,439
11.3%
277,727
27.0%
1,028,712
Leisure services
629,764
5.4%
20,755
3.4%
609,009
Debt service
552,180
4.8%
(1,359)
-0.2%
553,539
Capital outlay
346,224
3.0%
85,033
32.6%
261,191
Total expenditures $
11,569,180
100%
$ 1,150,643
11.0%
$ 10,418,537
Total General fund expenditures increased from the prior year 11.0%. Only expenditures in public safety and
for capital outlay reported decreases. The increase in capital outlay $85,033 was mainly due to capital
projects funded and reported in the capital projects fund rather than the general fund. The decreases were
offset by increases in expenditures in the functions of. general government, transportation and leisure
services. The cost of debt decreased .1% from the prior year due to principle payments offset by capital
15
Management's Discussion and Analysis 2017
leases entered into during the year. Below is a graphic presentation of how the Village expends funds and
how they compare to the prior period.
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
2417
2016
General Fund - Expenditures by Source
in Thousands
��� �fi tiG�y Geo
v �
Ending fund balances for the Capital Projects Fund is $4,313 and the Capital Improvement fund is $55,836 at
September 30, 2017. Fund balances in both funds are assigned for capital projects/improvements. The
Capital Projects Fund and the Capital Improvement Fund receive revenue from capital grants and transfers -in
from other funds.
General Fund Budgetary Highlights
The General Fund original budget was increased by $612,163. Major areas that increased were in General
government, Public safety and Capital Outlay.
Proprietary funds: The Village's proprietary funds provide the same type of information found in the
government -wide financial statements, but in more detail.
L[:
Management's Discussion and Analysis
2017
The table below summarizes the operating income (loss) and the change in net position for each of the
Village's proprietary funds. At the end of the year, total net position of the proprietary funds was
$18,961,915 a decrease of $523,260 from the prior period as shown below. Other factors concerning the
finances of this major fund have already been addressed in the discussion of the Village's business -type
activities.
Operating Income (Loss)
Change in Net Position
2017
2016
2017
2016
Water $ 643,148 $
324,981
$ 505,358 $
138,433
Stormwater 1,360
(165,400)
3,243
(164,333
Refuse and Recycling 14,475
927
14,659
1,082
$ 658,983 $
160,508
$ 523,260 $
(24,818
Capital Assets and Debt Administration
Capital assets: The Village's capital assets for its governmental and business -type activities total
$29,163,772 (net accumulated depreciation) as of September 30, 2017. The Village acquired $1,330
thousand in assets during the year and disposed of $325 thousand during the year.
Additional information on the Village's capital assets can be found in Note 3 D., Capital Assets, starting on
page 52 of this report.
Land $ 634,017 $ 634,017 $ 83,335 $ 83,335 $ 717,352 $ 717,352
Construction in progress 7,915 31,505 - 837,117 7,915 868,622
Buildings
8,043,526
8,043,526
979,512
979,512
9,023,038
9,023,038
hnprovements
2,394,434
2,385,930
58,720
58,720
2,453,154
2,444,650
Infrastructure
4,614,815
4,614,815
34,108,994
32,596,845
38,723,809
37,211,660
Machinery & Equipment
4,486,247
4,374,107
1,833,281
1,778,302
6,319,528
6,152,409
Intangibles
307,599
201,377
129,096
48,649
436,695
250,026
Other - K-9
25,763
25,763
-
-
25,763
25,763
Total capital assets
20,514,316
20,311,040
37,192,938
36,382,480
57,707,254
56,693,520
Less accumulated depreciation
(8,416,256)
(7,847,215)
(20,127,226)
(19,367,976)
(28,543,482)
(27,215,191)
Total capital assets, net
$ 12,098,060 $
12,463,825
$ 17,065,712
$ 17,014,504 $
29,163,772
$ 29,478,329
17
Management's Discussion and Analysis
2017
Noncurrent liabilities: At the end of the current fiscal year, the Village had a total of $9,842,869 of
noncurrent liabilities. The largest portion are debt instruments in the form of promissory notes with Bank of
America that are secured by general revenue sources. The table below summarizes the Village's debt
position.
In implementing GASB No. 68 in 2015, the Village recognized a net pension liability (NPL) of $2,483,968.
The Village is presenting the NPL as a separate component of the noncurrent liabilities on the face of the
financial statements to present more clearly the Village's long-term pension obligations. A more detailed
explanation can be found in Note 3.K — Noncurrent Liabilities starting on page 92.
Notes payable
$ 1,674,029
$ 1,968,023
$ 4,244,561
$ 4,592,420
$ 5,918,590
$ 6,560,443
Capital leases
400;739
547,423
-
-
400,739
547,423
Compensated absences
534,608
517,571
155,433
163,108
690,041
680,679
Net OPEB Obligation
262,234
230,126
83,657
73,415
345,891
303,541
Noncurrent Liabilities
2,871,610
3,263,143
4,483,651
4,828,943
7,355,261
8,092,086
Net Pension Liability
2,304,991
2,410,632
182,617
198,798
2,487,608
2,609,430
Total Noncurrent Liabilities
$ 5,176,601
$ 5,673,775
$ 4,666,268
$ 5,027,741
$ 9,842,869
$ 10,701,516
Economic Factors and Next Year's Budgets and Rates
The following economic factors currently affect the Village of Tequesta and were considered in developing
the 2016-2017 fiscal year budgets.
• The Village Council's decision to hold the millage rate at 6.292 as the Village expects property values
to rise.
• There has been a positive move in the housing market, new home construction is increasing and
inventory of homes has decreased significantly from the prior period. The Village is experiencing
increased revenues from permits as remaining inventory in commercial areas develop.
• Interest rates remained low as the Federal Reserve continues to remain slow in taking any action to
raise rates significantly.
• Revenues from sales taxes increased from the prior year and the State of Florida continues to work to
capture online sales taxes.
• The CPI remains lower than 2%, (the number the federal government is looking for).
• The U.S. Gross Domestic Product has been growing at a 1.9%.
• The Village of Tequesta's water rates increased 10% during the year to fund capital needs.
Requests for Information
This financial report is designed to provide a general overview of the Village of Tequesta's finances for all
those with an interest in the government's finances. Questions concerning any of the information provided in
this report or requests for additional financial information should be addressed to the Village of Tequesta,
Finance Department, 345 Tequesta Drive, Tequesta, Florida 33469.
W
BASIC FINANCIAL STATEMENTS
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF NET POSITION
SEPTEMBER 30, 2017
Assets
Cash
Investments
Receivables, net
Inventories
Prepaid items
Net pension asset
Capital assets not being depreciated
Capital assets being depreciated, net
Total Assets
Deferred Outflows of Resources
Deferred outflows - pensions
Deferred charge on refunding
Total Deferred Outflows of Resources
Liabilities
Accounts payable
Accrued liabilities
Customer deposits
Unearned revenue
Due to other governments
Noncurrent liabilities:
Due within one year
Due m more than one year
Net OPEB obligation
Net pension liability due within one year
Net pension liability due in more than one year
Total Liabilities
Deferred Inflows of Resources
Deferred inflows - pensions
Total Deferred Inflows of Resources
Net Position
Net investment in capital assets
Restricted:
Infrastructure
Debt Service
Building
Law Enforcement
Unrestricted
Total Net Position
Business -
Governmental type
Activities Activities Total
$ 2,346,689 $
1,760,321 $
4,107,010
2,576,601
3,973,588
6,550,189
432,904
637,103
1,070,007
34,204
129,015
163,219
177,838
51,956
229,794
689,464
-
689,464
641,932
83,335
725,267
11,456,128
16,982,377
28,438,505
18,355,760
23,617,695
41,973,455
1,801,913
279,420
2,081,333
-
257,433
257,433
1,801,913
536,853
2,338,766
306,691
273,850
580,541
225,694
67,890
293,584
-
33,933
33,933
287,959
-
287,959
5,989
179
6,168
470,414
376,778
847,192
2,138,962
4,023,216
6,162,178
262,234
83,657
345,891
2,738
902
3,640
2,302,253
181,715
2,483,968
6,002,934
5,042,120
11,045,054
1,197,025 150,513 1,347,538
1,197,025 150,513 1,347,538
10,023,291 13,078,584 23,101,875
219,565 219,565
429,616 429,616
791,730 791,730
335,858 - 335,858
1,157,654 5,883,331 7,040,985
$ 12,957,714 $ 18,961,915 $ 31,919,629
The accompanying notes are an integral part of these financial statements.
IM
Functions/Programs
Primary Government
Governmental Activities
General government
Public safety
Transportation
Leisure services
Interest on long-term debt
Total governmental activities
Business -type Activities
Water
Stonnwater utility
Refuse and Recycling
Total business -type activities
Total primary government
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Program Revenues
Operating Capital Grants
Charges for Grants and and
Expenses Services Contributions Contributions
Net (Expense) Revenue and
Changes in Net Position
Primary Government
Governmental Business -type
Activities Activities Total
S 2,201,162 S
865,589 S
- S - S (1,335,573) S S
(1,335,573)
7,004,196
1,775,824
10,235 23,657 (5,194,480)
(5,194,480)
1,650,162
-
- - (1,650,162)
(1,650,162)
690,068
83,749
(606,319)
(606,319)
111,504
-
- - (111,504)
(111,504)
11,657,092
2,725,162
10,235 23,657 (8,898,038)
(8,898,038)
5,038,740 5,487,305
448,565
448,565
338,758 340,118
1,360
1,360
479,278 493,753
14,475
14,475
5,856,776 6,321,176
- -
464,400
464,400
S 17,513,868 S 9,046,338 S
10,235 S 23,657 (8,898,038)
464,400
(8,433,638)
General Revenues
Ad valorem taxes
6,098,723
-
6,098,723
Utility taxes
685,516
685,516
Communication service tax
296,106
296,106
Insurance premium taxes
148,963
148,963
Infrustmcture surtax
282,840
282,840
Business taxes
98,929
98,929
Franchise fees based on gross receipts
452,496
452,496
Unrestricted intergovernmental revenues
830,570
-
830,570
Unrestricted investment earnings
15,605
28,064
43,669
Gain on sale of capital assets
9,336
-
9,336
Miscellaneous revenues
32,676
30,796
63,472
Total general revenues
8,951,760
58,860
9,010,620
Change in net position
53,722
523,260
576,982
Net Position - Beginning
12,903,992
18,438,655
31,342,647
Net Position - Ending
S 12,957,714 S
18,961,915 S
31,919,629
The accompanying notes are an integral part of'these financial statements.
VILLAGE OF TEQUESTA, FLORIDA
Assets
Cash
Investments
Receivables, net
Inventories
Prepaid items
Total Assets
Liabilities
Accounts payable
Accrued liabilities
Unearned revenue
Due to other governments
Total Liabilities
Fund Balances
Nonspendable:
Inventories
Prepaid items
Restricted:
Infrastructure
Debt Service
Building
Law Enforcement
Assigned to:
Subsequent years budget
Hurricane disaster emergency
Capital Projects
Unassigned:
General Fund
Total Fund Balances
Total Liabilities and Fund Balances
BALANCESHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2017
Other Total
General Governmental Governmental
Fund Funds Funds
$ 1,902,682 $
444,007 $ 2,346,689
2,576,601
- 2,576,601
432,904
- 432,904
34,204
- 34,204
177,838
- 177,838
$ 5,124,229 $
444,007 $ 5,568,236
$ 258,691 $
48,000 $ 306,691
225,694
- 225,694
287,959
- 287,959
5,989
- 5,989
778,333
48,000 826,333
34,204
- 34,204
177,838
- 177,838
219,565 - 219,565
429,616 - 429,616
791,730 - 791,730
- 335,858 335,858
214,418 - 214,418
1,000,000 - 1,000,000
- 60,149 60,149
1,478,525 - 1,478,525
4,345,896 396,007 4,741,903
$ 5,124,229 $ 444,007 $ 5,568,236
The accompanying notes are an integral part of these financial statements.
21
VILLAGE OF TEQUESTA, FLORIDA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2017
Amounts reported for governmental activities in the statement of net position are
different because:
Total Fund Balances - Governmental Funds $ 4,741,903
Net pension asset is not considered to represent a financial asset in
the governmental funds. 689,464
Net capital assets used in the governmental activities are not financial resources
and, therefore are not reported in the governmental funds. 12,098,060
Deferred outflows of resources related to pension transactions not reported
in the governmental funds. 1,801,913
Deferred inflows of resources related to pension transactions not recognized
in the governmental funds. (1,197,025)
Long-term liabilities, including notes payable, are not due and payable in the
current period and, therefore, are not reported in the governmental funds. (2,609,376)
Net OPEB obligation is not due and payable in the current period and, therefore,
not reported in the governmental funds. (262,234)
Net pension liability is not due and payable in the current period and,
therefore, not reported in the funds. (2,304,991)
Net Position of Governmental Activities $ 12,957,714
The accompanying notes are an integral part of these financial statements.
22
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Expenditures
Current:
General government
Public safety
Transportation
Leisure services
Capital outlay
Debt service:
Principal
Interest
Fiscal Charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Proceeds on sale of capital assets
Total other financing sources (uses)
Total other financing sources (uses)
Net change in fund balances
Fund Balances - Beginning
Fund Balances - Ending
2,104,039
Other
Total
2,173 6,632,707
General Governmental
Governmental
629,764
Fund Funds
Funds
Revenues
106,000
9,336
Ad valorem taxes
$ 6,098,723 $ -
$ 6,098,723
Other taxes
1,512,354 -
1,512,354
Charges for services
1,272,994 -
1,272,994
Intergovernmental
836,780 -
836,780
Intragovernmental
561,350 -
561,350
Licenses and permits
646,126 -
646,126
Franchise fees
452,496 -
452,496
Rents and royalties
203,965 -
203,965
Miscellaneous
40,660 -
40,660
Fines and forfeitures
32,743 -
32,743
Grants, contributions and donations
27,682 -
27,682
Investment earnings
15,605 -
15,605
Total Revenues
11,701,478 -
11,701,478
Expenditures
Current:
General government
Public safety
Transportation
Leisure services
Capital outlay
Debt service:
Principal
Interest
Fiscal Charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Proceeds on sale of capital assets
Total other financing sources (uses)
Total other financing sources (uses)
Net change in fund balances
Fund Balances - Beginning
Fund Balances - Ending
2,104,039
- 2,104,039
6,630,534
2,173 6,632,707
1,306,439
156,083 1,462,522
629,764
- 629,764
346,224
10,000 356,224
440,676
- 440,676
92,164
- 92,164
19,340
- 19,340
11,569,180
168,256 11,737,436
132,298 (168,256) (35,958)
-
106,000
106,000
(106,000)
-
(106,000)
9,336
-
9,336
(96,664)
106,000
9,336
(96,664)
106,000
9,336
35,634
(62,256)
(26,622)
4,310,262
458,263
4,768,525
$ 4,345,896 $
396,007 $
4,741,903
The accompanying notes are an integral part of these financial statements.
23
VILLAGE OF TEQUESTA, FLORIDA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Amounts reported for governmental activities in the statement of activities
(Page 20) are different because:
Net change in fund balances - total governmental funds (Page 23)
Governmental funds report capital outlay as expenditures. However, in the
statement of activities, the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense. This is the
amount by which capital outlay exceeded depreciation in the current period.
The details of the difference are as follows:
Capital outlay 356,224
Depreciation expense (721,989)
Net Adjustment
The issuance of long-term debt provides current financial resources to
governmental funds, while the repayment of the principal of long-term debt
consumes the current financial resources of governmental funds. Neither
transaction, however, has any effect on net position.
Payment on notes payable 293,993
Payment on capital lease 146,684
Some expenses reported in the statement of activities do not require the
use of current financial resources and, therefore, are not reported as
expenditures in governmental funds:
The details of the difference are as follows:
Compensated absences (17,037)
Net OPEB obligation (32,108)
Net pension liabilities 54,577
Change in net position of governmental activities (Page 20)
(26,622)
(365,765)
440,677
5,432
$ 53,722
The accompanying notes are an integral part of these financial statements.
24
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2017
The accompanying notes are an integral part of these financial statements.
25
Business -type Activities
Nonmajor
Water
Refuse &
Fund
Stormwater
Recycling
Total
Assets
Current Assets:
Cash
$ 825,831
$ 799,757 $
134,733
$ 1,760,321
Investments
3,609,837
357,186
6,565
3,973,588
Receivables, net
629,889
2,239
4,975
637,103
Inventories
128,450
565
-
129,015
Prepaid items
50,360
1,596
-
51,956
Total Current Assets
5,244,367
1,161,343
146,273
6,551,983
Non-current Assets:
Capital assets not being depreciated
83,335
-
-
83,335
Capital assets being depreciated, net
15,745,990
1,236,387
16,982,377
Total Non -Current Assets
15,829,325
1,236,387
17,065,712
Total Assets
21,073,692
2,397,730
146,273
23,617,695
Deferred Outflows of Resources
Deferred outflows - pensions
265,205
14,215
-
279,420
Deferred charge on refunding
257,433
-
257,433
Total Deferred Outflows of Resources
522,638
14,215
-
536,853
Liabilities
Current Liabilities:
Accounts payable
$ 220,661
$ 13,898 $
39,291
$ 273,850
Accrued liabilities
65,036
2,854
-
67,890
Customer deposits
33,933
-
33,933
Compensated absences - current
15,000
15,000
Due to other governments
179
179
Notes payable - current
361,778
361,778
Net pension liability - current
902
-
-
902
Total Current Liabilities
697,489
16,752
39,291
753,532
Noncurrent Liabilities:
Compensated absences
139,973
460
-
140,433
Notes payable
3,882,783
-
3,882,783
Net pension liability
181,588
127
181,715
Net OPEB obligation
74,809
8,848
83,657
Total Noncurrent Liabilities
4,279,153
9,435
-
4,288,588
Total Liabilities
4,976,642
26,187
39,291
5,042,120
Deferred Inflows of Resources
Deferred inflows - pensions
145,724
4,789
-
150,513
Total Deferred Inflows of Resources
145,724
4,789
150,513
Net Position
Net investment in capital assets
11,842,197
1,236,387
-
13,078,584
Unrestricted
4,631,767
1,144,582
106,982
5,883,331
Total Net Position
$ 16,473,964
$ 2,380,969 $
106,982
$ 18,961,915
The accompanying notes are an integral part of these financial statements.
25
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Business -type Activities
Nonmaj or
Water Refuse &
Fund Stormwater Recycling Total
Operating Revenues
Charges for services:
Metered water sale
$ 5,426,753 $
$
$
5,426,753
Tap fees
60,552
60,552
Stormwater fees
-
340,118
340,118
Refuse and recycling fees
-
-
493,753
493,753
Total Operating Revenues
5,487,305
340,118
493,753
6,321,176
Operating Expenses
Cost of sales and services:
Plant production
1,895,138
37,701
-
1,932,839
Distribution
1,068,482
-
1,068,482
Stormwater
-
181,060
-
181,060
Purchased services
-
-
471,678
471,678
Management services
540,800
12,950
7,600
561,350
Administration
515,665
-
-
515,665
Depreciation
824,072
107,047
-
931,119
Total Operating Expenses
4,844,157
338,758
479,278
5,662,193
Operating Income
643,148
1,360
14,475
658,983
Non -Operating Revenues (Expenses)
Miscellaneous revenue
30,796
-
-
30,796
Investment earnings
25,997
1,883
184
28,064
Interest expense
(166,878)
-
-
(166,878)
Other fiscal charges
(27,705)
-
-
(27,705)
Total Non -Operating Revenues (Expenses)
(137,790)
1,883
184
(135,723)
Change in Net Position
505,358
3,243
14,659
523,260
Net Position - Beginning
15,968,606
2,377,726
92,323
18,438,655
Net Position - Ending
$ 16,473,964 $
2,380,969 $
106,982 $
18,961,915
The accompanying notes are an integral part of these financial statements.
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Business-tvoe Activities
Refuse
Water Storm Water Non Major
Fund Fund Fund Totals
Cash Flows from Operating Activities
Cash received from customers, governments and other funds $ 5,353,853 $ 339,979 $ 493,224 $ 6,187,056
Cash paid to suppliers (2,372,995) (105,011) (370,118) (2,848,124)
Cash paid to employees (1,865,106) (123,314) (110,292) (2,098,712)
Net Cash Provided by Operating Activities
Cash Flows from Capital and Related Financing Activities
Acquisition and construction of capital assets
Principal payments on long-term debt
Interest and fiscal charges paid
Net Cash (Used in) Capital and Related Financing Activities
Cash Flows from Investing Activities
Interest and micsellaneous income
Purchase of investments
Net Cash Provided by (Used in) Investing Activities
Net Increase (Decrease) in Cash
Cash - Beginning
Cash - Ending
Adjustments to Reconcile Operating Income to Net
Cash Provided by Operating Activities
Operating income
Adjustments to reconcile operating income to net
cash provided by operating activities:
Depreciation
Changes in operating assets, liabilities and deferred inflows/
outflows of resources:
(Increase) decrease in:
Accounts receivable
Inventories
Deferred outflow of resources
Net pension asset
Prepaid items
Increase (decrease)in:
Accounts payable
Accrued liabilities
Customer deposits
Compensated absences
Deferred inflows of resources
Net pension liability
Due to other governments
Net OPEB obligation
Net Cash Provided by Operating Activities
1,115,752 111,654 12,814 1,240,220
(870,783) (349,606)
(1,220,389)
(347,859)
(347,859)
(194,583)
(194,583)
(1,413,225) (349,606)
(1,762,831)
56,793
(3,590,823)
1,883
-
485
-
59,161
(3,590,823)
(3,534,030)
1,883
485
(3,531,662)
(3,831,503)
(236,069)
13,299
(4,054,273)
4,657,334
1,035,826
121,434
5,814,594
$ 825,831
$ 799,757 $
134,733
$ 1,760,321
$ 643,148 $
1,360 $
14,475 $ 658,983
824,072
107,047
- 931,119
(133,452)
(139)
(829) (134,420)
(38,057)
(21)
- (38,078)
(49,388)
(306)
(49,694)
31,188
3,142
34,330
1,245
(1,691)
(446)
(219,381)
(415)
(832) (220,628)
47,628
-
- 47,628
2,701
-
2,701
(6,902)
227
(6,675)
21,845
1,240
23,085
(16,308)
-
(16,308)
(1,746)
127
(1,619)
9,159
1,083
- 10,242
$ 1,115,752 $
111,654 $
12,814 $ 1,240,220
The accompanying notes are an itegral part of these financial statements.
27
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2017
Assets
Cash and cash equivalents
Investments
Equities
Fixed Income
Real Estate Fund
Total investments
Prepaid items
Contributions receivable
Accrued interest
Total Assets
Liabilities
Accounts payable
Total Liabilities
Net Position Restricted for Pension Benefits
Pension
Trust
Funds
$ 417,123
12,287,760
4,382,299
1,617,289
18,287,348
26,216
32,794
16,277
18,779,758
34,555
34,555
$ 18,745,203
The accompanying notes are an integral part of this statement
W
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Pension
Trust
n A -
Additions
Contributions:
Employer (including State) $ 705,337
Employee 239,923
Total Contributions 945,260
Investment Earnings
Net increase (decrease) in fair value of investments 254,390
Gain on sale of investments 1,102,209
Interest earnings 631,088
1,987,687
Less investment expenses (93,260)
Net Investment Earnings 1,894,427
Miscellaneous 262
Total Additions 2,839,949
Deductions
Benefits paid 233,372
Refund of contributions 15,362
Administrative expenses 74,873
Total Deductions 323,607
Change in Net Position 2,516,342
Net Position Restricted for Pension Benefits
Beginning 16,228,861
Ending $ 18,745,203
The accompanying notes are an integral part of this statement
at
NOTES TO BASIC FINANCIAL STATEMENTS
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Note 1— Summary of Significant Accounting Policies
A. Description of Government -Wide Financial Statements
The government -wide financial statements (i.e. the statement of net position and the statement of
activities) report information on all non -fiduciary activities of the primary government and any
component units. All fiduciary funds are presented separately. Governmental activities, which
normally are supported by taxes, intergovernmental revenues, and other non-exchange transactions,
are reported separately from business -type activities, which rely to a significant extent on fees and
charges to external customers for support.
B. Reporting Entity
The Village of Tequesta, Florida (the Village) is a municipal corporation organized in 1957
pursuant to Special Act 57-1915, Laws of Florida. The Village has a Council -Manager form of
government governed by a five (5) member Council elected at large. Each year, the Council
appoints one of its members Mayor, to serve at the pleasure of Council for one year. The Village's
major operations include public safety (police, fire rescue/EMS, building and code enforcement),
transportation (streets and roads), leisure services (culture and recreation), water, stormwater,
refuse & recycling services and general and administrative.
The definition of the financial reporting entity is based upon the concept that elected officials are
accountable to their constituents for their actions. One of the objectives of financial reporting is to
provide users of financial statements with a basis for assessing the accountability of the elected
officials. The financial reporting entity consists of the Village, organizations for which the Village
is financially accountable and other organizations for which the nature and significance of their
relationship with the Village are such that exclusion would cause the reporting entity's financial
statements to be misleading or incomplete. The Village is financially accountable for a component
unit if it appoints a voting majority of the organization's governing board and it is able to impose
its will on that organization or there is a potential for the organization to provide specific financial
benefits to, or impose specific financial burdens on the Village. The Village has no component
units to report.
C. Basis of Presentation — Government -Wide Financial Statements
While separate government -wide and fund financial statements are presented, they are interrelated.
Both sets of statements distinguish between the governmental and business -type activities of the
Village. The governmental activities column incorporates data from governmental funds while
business -types activities incorporate data from the Village's enterprise funds. Separate financial
statements are provided for governmental funds, proprietary funds, and fiduciary funds, even
though the latter are excluded from the government -wide financial statements.
[CSI
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
As a general rule, the effect of interfund activity has been eliminated from the government -wide
financial statements. Exceptions to this general rule are payments in lieu of taxes where the
amounts are reasonably equivalent in value to the interfund services provided and other charges
between the Village's water and various other functions of the government. Elimination of these
charges would distort the direct costs and program revenues reported for the various functions
concerned.
The Statement of Net Position reports all financial and capital resources of the Village's
governmental and business -type activities. Governmental activities are those supported by taxes
and intergovernmental revenues. Business -type activities rely to a significant extent on fees and
charges for support. The Statement of Activities demonstrates the degree to which the direct
expenses of a given function or segment are offset by program revenues. Direct expenses are those
that are clearly identifiable with a specific function or segment. Program revenues include 1)
charges for goods or services that are recovered directly from customers for services rendered and
2) grants and contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among program
revenues are reported instead as general revenues.
D. Basis of Presentation — Fund Financial Statements
The fund financial statements provide information about the Village's funds, including its fiduciary
funds. Separate statements for each fund category — governmental, proprietary and fiduciary — are
presented. The emphasis of fund financial statements is on major governmental and enterprise
funds, each displayed in a separate column. All remaining governmental and enterprise funds are
aggregated and reported as nonmajor funds. Major individual governmental and enterprise funds
are reported as separate columns in the fund financial statements. Fiduciary funds are presented
apart from major and nonmajor funds.
The Village reports the following major governmental fund:
The General Fund is the Village's primary operating fund. It accounts for all financial resources
of the general government, except those accounted for in another fund.
The Village reports the following major enterprise funds:
The Water Fund, which accounts for the activities of the water utility, which includes the
processing and distribution of potable water to Village residents and some surrounding
communities, and the Stormwater Utility Fund, which accounts for the construction and
maintenance of the Village's stormwater system.
Additionally, the Village reports the following fund type:
The pension trust funds account for the activities of the Public Safety Employees' and the
General Employees' Pension Trust Funds, which accumulate resources for pension benefit
payments to qualified employees.
31
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
During the course of operations, the Village has activity between funds for various purposes. Any
residual balances outstanding at year end are reported as due from/to other funds (short-term) and
advances to/from other funds (long-term). While these balances are reported in fund financial
statements, certain eliminations are made in the preparation of the government -wide financial
statements. Balances between the funds included in governmental activities are eliminated so that
only the net amount is included as internal balances in the governmental activities column.
Similarly, balances between the funds included in the business -type activities (i.e., the enterprise
funds) are eliminated so that only the net amount is included as internal balances in the
business -type activities column.
Further, certain activity occurs during the year involving transfers of resources between funds. In
fund financial statements these amounts are reported at gross amounts as transfers in/out. While
reported in fund financial statements, certain eliminations are made in the preparation of the
government -wide financial statements. Transfers between the funds included in governmental
activities are eliminated so that only the net amount is included as transfers in the governmental
activities column. Similarly, balances between the funds included in business -type activities are
eliminated so that only the net amount is included as transfers in the business -type activities
column.
E. Measurement Focus and Basis of Accounting
The accounting and financial reporting treatment is determined by the applicable measurement
focus and basis of accounting. Measurement focus indicates the type of resources being measured
such as current financial resources or economic resources. The basis of accounting indicates the
timing of transactions or events for recognition in the financial statements.
The government -wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.
Property taxes are recognized as revenues in the year for which they are levied. Grants and similar
items are recognized as revenue as soon as all eligibility requirements imposed by the provider have
been met.
The governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon
as they are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current
period. For this purpose, the Village considers revenues to be available if they are collected within
60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability
is incurred, as under accrual accounting. However, debt service expenditures, as well as
expenditures related to compensated absences, and claims and judgments, are recorded only when
payment is due. Capital asset acquisitions are reported as expenditures in governmental funds.
Issuance of long-term debt and acquisitions under capital leases are reported as other financing
sources.
0
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the current fiscal
period are all considered to be susceptible to accrual and so have been recognized as revenues of
the current fiscal period. Entitlements are recorded as revenues when all eligibility requirements are
met, including any time requirements, and the amount is received during the period or within the
availability period for this revenue source (within 60 days of year-end). Expenditure driven grants
are recognized as revenue when the qualifying expenditures have been incurred and all other
eligibility requirements have been met, and the amount is received during the period or within the
availability period for this revenue source (within 60 days of year-end). All other revenue items are
considered to be measurable and available only when cash is received by the Village.
The proprietary funds are reported using the economic resources measurement focus and the
accrual basis of accounting for reporting its assets and liabilities and deferred inflows and outflows
of resources (as described previously).
The pension trust funds are reported on the accrual basis of accounting. Plan member and state
contributions are recognized as revenues in the period that the contributions are due. Employer
contributions to each Plan are recognized when due and the employer has made a formal
commitment to provide the contributions. Benefits and refunds are recognized when due and
payable in accordance with the terms of the plan. All plan investments are reported at fair value at
the last reported sales price on the last business day of the fiscal year, except for a money market
fund which is reported at amortized cost; securities traded in the over-the-counter market and listed
securities for which no sales were reported on that date are valued at the last reported bid price.
Securities without an established fair value are reported at estimated fair value. Purchases and
sales of securities are recorded on a trade -date basis.
F. Budgetary Information
1. Budgetary Basis of Accounting
Annual budgets are adopted on a basis consistent with generally accepted accounting principles.
The appropriated budget is prepared by fund, function and department. Per established procedures
approved by the Village Council, the designated budget officer may approve a department head's
request to transfer appropriations between accounts, within a department. Although the Village
Council requires all inter -department budget amendments to go before the Village Council, the
budget was adopted on a fund basis and the legal level of budgetary control is at that level. What
this means is that any amendments that change the total fund's budget requires the Village Council
to approve it in the same manner that the original budget was approved — by resolution.
Appropriations in all budgeted funds lapse at the end of the fiscal year even if they have related
encumbrances. Encumbrances are commitments related to unperformed (executory) contracts for
goods or services (i.e., purchase orders, contracts, and commitments). Encumbrance accounting is
utilized to the extent necessary to assure effective budgetary control and accountability and to
facilitate effective cash planning and control. While all appropriations and encumbrances lapse at
year end, valid outstanding encumbrances (those for which performance under the executor
contract is expected in the next year) are re -appropriated and become part of the subsequent year's
budget pursuant to state regulations.
911
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
G. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance
1. Cash
The Village's cash is considered to be cash on hand and demand deposits.
2. Investments
Investments for the Village are reported at fair value, except for the position in the State Board of
Administration Investment Pool (SBA). Fair value is defined as the price that would be received to
sell an asset or paid to transfer a liability in an orderly transaction between market participants at
the measurement date. The SBA administers Florida PRIME and is governed by Chapter 19-7 of
the Florida Administrative Code and Chapters 218 and 215 of the Florida Statutes. These rules
provide guidance and establish the policies and general operating procedures for the administration
of the Florida PRIME. Florida PRIME invests in a pool of investments whereby the Village owns
a share of the respective pool, not the underlying securities. GASB issued Statement No. 79.
Certain External Investment Pools and Pool Participants establishing criteria for an external
investment pool to qualify to report at amortized cost. Florida PRIME is exempt from the GASB
No. 72 fair value hierarchy disclosures and reports at amortized cost.
3. Inventories and Prepaid Items
Inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories consist of
expendable supplies and water distribution repair parts. The cost of such inventories is recorded as
expenditures/expenses when consumed rather than when purchased.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded
as prepaid items in both the government -wide and fund financial statements. The cost of prepaid
items is recorded as expenditures/expenses when consumed rather than when purchased.
4. Capital Assets
Capital assets, which include property, plant, equipment, infrastructure and intangible assets (e.g.
roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or
business -type activities column in the government -wide financial statements. Capital assets, except
for infrastructure and intangible assets, are defined by the Village as assets with an initial,
individual cost of more than $1,000 and an estimated useful life in excess of two years. For
infrastructure and intangible assets the same estimated minimum useful life is used (in excess of
two years), but only those projects that cost more than $25,000 are reported as capital assets. In
the case of the initial capitalization of general infrastructure assets (i.e., those reported by
governmental activities), the Village chose not to capitalize infrastructure acquired in fiscal years
ending prior to September 30, 2004. As the Village constructs or acquires additional capital assets
each period they are capitalized and reported at historical cost. The reported value excludes normal
maintenance and repairs which are essentially amounts spent in relation to capital assets that do not
increase the capacity or efficiency of the item or increase its estimated useful life. Donated capital
assets are recorded at their acquisition value at the date of donation.
92
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Interest incurred during the construction phase of capital assets of enterprise funds is included as
part of the capitalized value of the assets constructed. The amount of interest capitalized depends
on the specific circumstances and is not applied to the governmental funds or the government -wide
governmental activities. There was no interest capitalized in 2017.
Land and construction in progress are not depreciated. The other property, plant, equipment, and
infrastructure of the primary government are depreciated using the straight line method over the
following estimated useful lives:
Buildings
20
— 40 years
Improvements
20
— 50 years
Infrastructure
20
— 50 years
Machinery and equipment
5
— 15 years
Intangibles
5
— 20 years
5. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position reports a separate section for deferred outflows
of resources. This separate financial statement element represents a consumption of net position
that applies to a future period(s) and will not be recognized as an outflow of resources
(expense/expenditure) until then. The Village has two items that qualify for reporting in this
category. They are; 1) Deferred outflows related to pensions and; 2) Deferred charge on refunding
resulting from the difference in the carrying value of refunded debt and its reacquisition price, and
is amortized over the shorter of the life of the refunded or refunding debt. These items are reported
in the government -wide statement of net position and the statement of net position of the
proprietary funds.
In addition to liabilities, the statement of net position reports a separate section for deferred inflows
of resources. This separate financial statement element represents an acquisition of net position
that applies to a future period(s) and will not be recognized as an inflow of resources (revenue)
until that time. The Village has one type of item that qualifies for reporting in this category -
Deferred inflows related to pensions. This item is reported in the government -wide statement of net
position and the statement of net position of the proprietary funds.
6. Net Position Flow Assumption
Sometimes the Village will fund outlays for a particular purpose from both restricted and
unrestricted resources (e.g. restricted bond or grant proceeds). In order to calculate the amounts to
report as restricted net position and unrestricted net position, in the government -wide and
proprietary fund financial statements, a flow assumption must be made about the order in which
the resources are considered to be applied. It is the Village's policy to consider restricted net
position to have been depleted before unrestricted net position is applied.
7. Fund Balance Flow Assumptions
Sometimes the Village will fund outlays for a particular purpose from both restricted and
unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to
calculate the amounts to report as restricted, committed, assigned and unassigned fund balance in
the governmental fund financial statements a flow assumption must be made about the order in
35
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
which the resources are considered to be applied. It is the Village's policy to consider restricted
fund balance to have been depleted before using any of the components of unrestricted fund
balance. Further, when the components of unrestricted fund balance can be used for the same
purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned
fund balance is applied last.
8. Fund Balance Policies
The Village classifies fund balance in accordance with GASB Statement No.54 Fund Balance
Reporting and Governmental Fund Type Definitions. This statement enhances the usefulness of
fund balance information by providing clearer fund balance classifications that can be more
consistently applied and by clarifying the existing governmental fund type definitions. In the fund
financial statements, governmental funds report classifications that comprise a hierarchy based
primarily on the extent to which the Village is bound to honor constrains of the specific purposes
for which amounts in those funds can be spent.
The Village reports the following fund classifications:
Nonspendable fund balance. Nonspendable fund balances are amounts that can not be spent
because they are either not in spendable form such as inventory or legally or contractually required
to be maintained intact such as a perpetual trust.
Restricted fund balance. Restricted fund balances are amounts that are constrained by the
imposition externally by creditors, grantors, or laws or regulations of other governmental agencies
or imposed by law through constitutional provisions or enabling legislation.
Committed fund balance. Those amounts can only be used for specific purposes determined by a
formal action of the government's highest level of decision-making authority. The Village Council
is the highest level of decision-making authority for the Village that can, by adoption of an
ordinance or resolution equally binding and of equal decision-making authority, prior to the end of
the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance or
resolution remains in place until a similar action is taken (the adoption of another ordinance or
resolution) to remove or revise the limitation.
Assigned fund balance. Amounts in the assigned fund balance classification are intended to be
used by the Village for specific purposes but do not meet the criteria to be classified as committed.
The Village Council (Council) has, by adopting a fund balance policy, authorized the Village
Manager and/or the Finance Director to assign fund balance. The Council may also assign fund
balance as it does when appropriating fund balance to cover a gap between estimated revenue and
appropriations in the subsequent year's appropriated budget. Unlike commitments, assignments
generally only exist temporarily. In other words, an additional action does not normally have to be
taken for the removal of an assignment. Conversely, as discussed above, an additional action is
essential to either remove or revise a commitment.
Unassigned fund balance. Unassigned fund balance represents fund balance that has not been
assigned to other funds and that has not been restricted, committed, or assigned to specific
purposes within the general fund.
98
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
H. Revenues and Expenditures/Expenses
1. Program Revenues
Amounts reported as program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function
or segment and 2) grants and contributions (including special assessments) that are restricted to
meeting the operational or capital requirements of a particular function or segment. All taxes,
including those dedicated for specific purposes, and other internally dedicated resources are
reported as general revenues rather than as program revenues.
2. Property Taxes
Property tax collections are governed by Chapter 197, Florida Statutes. Property taxes are based
on assessed property value at January 1st as determined by the Palm Beach County Property
Appraiser. The Village sets the property tax millage rate in September. The Palm Beach County
Tax Collector bills and collects all property taxes levied within the County. Florida Statutes limit
the county -wide millage rate to a maximum of 10 mills, excluding voter -approved debt service
millage rates. The millage rate for the Village in fiscal year 2017 was 6.2920 mills. Tax bills are
mailed out November 1st and discounts are available for payments made in the following months;
November 4%, December 3%, January 2% and February 1%. Taxes become delinquent on April
1st. The owner of a tax certificate may at any time after taxes have been delinquent (April 1), for
two years, file an application for a tax deed sale. Tax deeds are issued to the highest bidder for the
property which is sold at public auction.
The Tax Collector remits current taxes collected through four distributions to the Village in the
first two months of the tax year and one distribution each month thereafter. The Village recognizes
property tax revenue in the period in which they are levied. The Tax Collector pays the Village
interest on monies held from day of collection to day of distribution.
3. Compensated Absences
Vacation
The Village's policy permits employees to accumulate earned but unused vacation benefits, which
are eligible for payment upon separation from the Village's service up to the maximum allowable
limit. The liability for such leave is reported as incurred in the government -wide and proprietary
fund financial statements. A liability for those amounts is recorded in the governmental funds only
if the liability has matured as a result of employee resignations or retirements. The liability for
compensated absences includes salary -related benefits, where applicable.
Sick Leave
The Village's policy permits employees to accumulate unused sick leave up to a maximum amount
approved by Council. Upon termination, this leave is eligible for payment at percentages
determined by years of service. The liability for such leave is reported as incurred in the
government -wide and proprietary fund financial statements when the liability has matured. A
liability for those amounts is recorded in the governmental funds only if the liability has matured as
a result of employee resignations or retirements.
W
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
4. Proprietary Funds Operating and Non -Operating Revenues and Expenses
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The
principal operating revenues of the water fund, refuse and recycling fund and stormwater fund are
charges to customers for sales and services. The water fund also recognizes as operating revenue,
the portion of tap fees intended to recover the cost of connecting new customers to the system.
Operating expenses for the enterprise funds include the cost of sales and services, administrative
expenses and depreciation on capital assets. All revenues and expenses not meeting this definition
are reported as non-operating revenues and expenses.
L Use of Estimates
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and assumptions
that affect certain reported amounts of assets and deferred outflows of resources and liabilities and
deferred inflows of resources and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenditures/expenses during the
reporting period. Actual results could differ from those estimates.
9N
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Note 2 — Reconciliation of Government -Wide and Fund Financial Statements
A. Explanation of Certain Differences Between the Governmental Fund
Balance Sheet and the Government -wide Statement of Net Position
The governmental fund balance sheet includes a reconciliation between fund balance — total
governmental funds and net position — governmental activities as reported in the
government -wide statement of net position. One element of that reconciliation explains that
"capital assets used in governmental activities are not financial resources and, therefore are not
reported in the funds." The amount of this reconciling element is $12,098,060 as explained in
the following detail (additional details shown in Note 3.D.):
Capital assets not being depreciated:
Land $ 634,017
Construction in progress 7,915
Capital assets being depreciated:
Buildings, net 5,317,253
Improvements other than buildings, net 1,107,054
Infrastructure, net 3,780,371
Machinery and equipment, net 1,142,968
Intangible, net 95,601
Other K-9, net 12,881
Net Adjustment to Increase Fund Balance -
Total Governmental Funds to Arrive at
Net Position - Governmental Activities $ 12,098,060
Another element of that reconciliation explains that "long-term liabilities, including bonds/notes
payable, are not due and payable in the current period and therefore are not reported in the funds."
The details of this $2,609,376 difference are as follows:
Note payable $ 1,674,029
Capital leases 400,739
Compensated absences 534,608
Net Adjustment to Reduce Fund Balance -
Total Governmental Funds to Arrive at
Net Position — Governmental Activities $ 2,609,376
K1vi
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Note 3 — Detailed Notes on All Activities and Funds
A. Cash Deposits with Financial Institution
Custodial credit risk -deposits. In the case of deposits, this is the risk that in the event of a bank
failure, the government's deposits may not be returned to it. All of the Village's deposits are held in
qualified public depositories pursuant to State of Florida Statutes, Chapter 280, Florida Security for
Public Deposits Act. Under the Act, every qualified public depository shall deposit with the
Treasurer eligible collateral of the depository to be held subject to his or her order. The pledging
level may range from 25% to 200% of the average monthly balance of public deposits depending
upon the depository's financial condition and establishment period. All collateral must be deposited
with an approved financial institution. Any potential losses to public depositors are covered by
applicable deposit insurance, sale of securities pledged as collateral and, if necessary, assessments
against other qualified public depositories of the same type as the depository in default. At
September 30, 2017, none of the Village's primary bank balances were exposed to custodial credit
risk.
B. Investments
The Village has adopted an investment policy in accordance with Florida Statutes and is authorized
to invest in obligations of the U.S. Treasury, its agencies and instrumentalities, certificates of
deposit, the State Board of Administration Investment Pool, any intergovernmental investment
pools authorized pursuant to Chapter 163 of the Florida Statutes, SEC registered money market
funds with the highest credit quality rating from a nationally recognized rating agency, and
securities of any interest in any open-end or closed-end management type investment company or
investment trust registered under the Investment Company Act of 1940, provided that the portfolio
is limited to obligations of U.S. government, its agencies and instrumentalities and to repurchase
agreements fully collateralized by such U.S. government obligations and provided that such
investment company or investment trust takes delivery of such collateral either directly or through
an authorized custodian.
The State Board of Administration (SBA) administers the Florida PRIME investment pool which is
governed by Chapter 19-7 of the Florida Administrative Code and Chapters 218 and 215 of the
Florida Statutes. The Florida PRIME is not a registrant with the Securities and Exchange
Commission (SEC). As a participant, the Village invests in a pool of investments owning a share of
the pool, not the underlying securities. The fair value of the Village's participation is the same as
the value of the pool shares. The investments in the Florida PRIME are reported at amortized cost
and not insured by FDIC or any other governmental agency.
GASB issued Statement No. 79, Certain External Investment Pool and Pool participants
establishing criteria for an external investment pool to qualify to report at amortized cost. Florida
PRIME is exempt from the GASB No. 72 fair value hierarchy disclosures and reports at amortized
cost.
CII
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
As of September 30, 2017, the Village had the following demand deposits and investments:
Weighted Credit
Average Rating Percent
Reported
Deposits and Investments Value Maturity (S&P) Distribution
SBA -Florida PRIME
Demand deposits
$ 6,550,189 51 days AAAm 61.46%
4,107,010
Total Deposits and Investments $ 10,657,199
38.54%
100%
Interest Rate Risk — The Village does not have a formal investment policy that limits investment
maturities as a means of managing its exposure to fair value losses arising from increasing interest
rates nor do they have any investments that are subject to interest rate risk.
Credit Risk - The Village does not have a written investment policy and, therefore, follows Florida
Statue 218.415(17). The Village invests surplus funds in the State Board of Administration
Investment Pool. The Florida PRIME is rated by Standard and Poor's.
Concentration of Credit Risk — Disclosure is required when the percentage of investments is 5% or
more in any one issuer. At September 30, 2017, the Village only invests in an external investment
pool and therefore is not subject to concentration of credit risk.
Custodial Credit Risk - The risk that, in the event of the failure of the counter party, the Village
will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party. At this time, the Village is only invested in the State Board of
Administration of Florida (SBA) investment pool.
41
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Investment Pools and Pool Participants
With regard to SBA - Florida PRIME redemption dates, Chapter 218.409(8) (a), Florida Statutes,
states, "The principal, and any part thereof, of each account constituting the trust fund is subject to
payment at any time from the moneys in the trust fund. However, the Executive Director may, in
good faith, on the occurrence of an event that has a material impact on liquidity or operations of the
trust fund, for 48 hours limit contributions to or withdrawals from the trust fund to ensure that the
Board can invest moneys entrusted to it in exercising its fiduciary responsibility. Such action must
be immediately disclosed to all participants, the Trustees, the Joint Legislative Auditing
Committee, the Investment Advisory Council, and the Participant Local Government Advisory
Council. The Trustees shall convene an emergency meeting as soon as practicable from the time the
Executive Director has instituted such measures and review the necessity of those measures. If the
Trustees are unable to convene an emergency meeting before the expiration of the 48-hour
moratorium on contributions and withdrawals, the Executive Director may extend the moratorium
until the Trustees are able to meet to review the necessity for the moratorium. If the Trustees agree
with such measures, the Trustees shall vote to continue the measures for up to an additional 15
days. The Trustees must convene and vote to continue any such measures before the expiration of
the time limit set, but in no case may the time limit set by the Trustees exceed 15 days."
With regard to liquidity fees, Florida Statute 218.409(4) provides authority for the SBA to impose
penalties for early withdrawal, subject to disclosure in the enrollment materials of the amount and
purpose of such fees. At present, no such disclosure has been made.
As of September 30, 2017, there were no redemption fees or maximum transaction amounts, or any
other requirements that serve to limit a participant's daily access to 100 percent of their account
value.
Investments — Public Safety Pension Trust Fund
Investment Policy Statement
The Public Safety Pension Board of Trustees, as fiduciaries, adopts an Investment Policy Statement
and directs that it applies to all assets under their control. It is the Board's intention to review the
policy at least annually subsequent to the actuarial report and to amend this statement to reflect any
changes in philosophy, objectives, or guidelines. When the Investment Manager feels that the
specific objectives defined in the statement cannot be met, or the guidelines constrict performance,
the Investment Manager will present a formal modified investment policy statement to the Board of
Trustees at a meeting for the Board's review. Once the Board has adopted, the new investment
policy goes into effect 31 days after it has been filed with the State of Florida. There were no
changes to the Investment Policy Statement for the fiscal year ended September 30, 2017 and the
investments of the Public Safety Trust Fund were in compliance with the investment policy.
90
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Fair Value Hierarchy
The Plan categorizes its fair value measurement within the fair value hierarchy established by
generally accepted accounting principles. The hierarchy is based on valuation input used to
measure the fair value of an asset:
Level 1 - investments reflect unadjusted quoted prices in active markets for identical assets;
Level 2 - investments reflect prices that are based on inputs that are either directly or indirectly
observable for an asset (including quoted prices for similar assets), which may include
inputs in markets that are not considered to be active;
Level 3 - investments reflect prices based upon unobservable inputs for an asset.
The investment pricing transparency determines the category within the hierarchy and should not
be observed at the investment risk. The custodian bank's (primary external pricing vendors) quoted
prices were used to determine level classification based on the fair value hierarchy.
Debt and equity securities classified as Level 1 of the fair value hierarchy are valued using quoted
prices at September 30, 2017 (or the most recent market close date if the markets are closed on
September 30) in active markets. This includes common stock, equity mutual funds and fixed
income funds.
Debt securities are valued using pricing inputs that reflect the assumptions market participants
would use to price an asset or liability and are developed based on market data obtained from
sources independent of the reporting equity (Level 2). This includes U.S. Treasury bonds and notes,
U.S. agencies, mortgage backed securities, municipal bonds and corporate obligations, including
asset backed securities.
The Real Estate Fund - this fund enters into real estate partnerships with various joint venture
partners. Fair value represents the Fund's share of the net asset value of the investment. The fund
had no outstanding commitments.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
As of September 30, 2017 the Public Safety Pension Trust Fund has the following recurring fair
value instruments:
Quoted Prices in Significant
Active Markets for Significant Unobservable
Identical Assets Observable Inputs Inputs
9/30/17 (Level 1) (Level 2) (Level 3)
Equities
Common stocks $
1,700,368 $
1,700,368 $
- $
Mutual funds equities
7,348,899
7,348,899
Total equity
9,049,267
9,049,267
Fixed income
Corporate bonds
778,081
778,081
U.S. Agencies
1,228,083
1,228,083
U.S. Treasury Bills
568,363
568,363
Bond mutual fund
660,508
660,508
Total fixed income
3,235,035
660,508
2,574,527
Total investments at fair value $
12,284,302 $
9,709,775 $
2,574,527 $
Investments at net asset value Redemption Redemption Notice
(NAV) Frequency Period
Real Estate Fund 1,242,619 Quarterly 30 days
Total investments $ 13,526,921
E
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
As of September 30, 2017, the Village of Tequesta's Public Safety Pension Trust Fund had the
following demand deposits and investments:
Weighted
Credit
Reported
Average
Rating
Percent
Percent of
Value
Maturity
(Moody)
Distribution
Net Position
Cash $
21,752
0.16%
-
Short Term Money Market Fund
238,500
1.73%
1.73%
Total Cash and Cash
Equivalents
260,252
Equities
Common Stocks
1,700,368
12.33%
12.31%
Mutual Funds
7,348,899
53.30%
53.21%
Total Equities
9,049,267
Fixed Income
Corporate Bonds:
1.32 years
Bonds
263,467
Al
1.91%
1.91%
Bonds
152,550
A2
1.11%
1.10%
Bonds
296,926
A3
2.15%
2.15%
Bonds
65,138
Aal
0.47%
0.47%
U.S. Government Bonds
568,363
4.12%
4.12%
U.S. Agencies
1,228,083
6.31 years
Aaa
8.91%
8.89%
Bond Fund
660,508
4.79%
4.78%
Total Fixed Income
3,235,035
Real Estate Fund
1,242,619
9.01%
9.00%
Total investments
13,526,921
Total cash and investments $
13,787,173
100.00%
99.67%
Interest Rate Risk - the risk that changes in interest rates will adversely affect the fair value of an
investment in debt securities. Generally, the longer the time to maturity the greater the exposure.
The Plan does not have a formal policy relating to interest rate risk, however;
• The established performance objectives require investment maturities to provide sufficient
liquidity to pay obligations as they become due.
• At September 30, 2017, there were no direct investments in debt instruments. However,
there were investments in mutual funds that included debt instruments in their portfolio.
Credit Risk - the risk that a debt issuer will not fulfill its obligations. The investment policy limits
credit risk by requiring that:
• Fixed income investments must hold a rating in one of the four highest classifications by a
major rating service.
• Equities must be traded on a national exchange.
• Money market investments must hold a minimum rating of Standard & Poor's Al or
Moody's P1.
45
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Concentration of Credit Risk - the risk of loss attributed to the magnitude of an investment in a
single issuer. The investment policy limits exposure to this risk by:
• Limiting investments in common stock, capital stock or convertible stock of any one
issuing company or aggregate of any one issuing company to 5% of the outstanding capital
stock of the company.
• Limiting the value of corporate bonds issued by any single corporation to not more than 5%
of the total fund.
• Limiting investments in corporate common stock and convertible bonds (not to exceed 70%
of the fund assets at fair value). Mortgage-backed securities issued by non-government
entities are limited to 15% of the fixed income portfolio.
• Limiting investments in foreign securities (not to exceed 25% of the value at cost of the
fund).
Custodial Credit Risk - the risk that, in the event of the failure of the counterparty, the government
will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party. The Plan's investment policy limits exposure to this risk by:
Requiring all securities to be held with a third party custodian.
Requiring security transactions between a broker/dealer and the custodian involving the
purchase or sale of securities by transfer of money or securities are made on a "delivery vs.
payment" basis to ensure that the custodian will have the security or money, as appropriate,
in hand at the conclusion of the transaction.
Foreign Currency Risk - is the risk of an investment's value changing due to changes in currency
exchange rates. Exposure to foreign currency risk is low as:
• Foreign investments are through ADR's (shares listed in the U.S.), mutual funds (registered
in the U.S.), or Yankee bonds (denominated in U.S. dollars should not to exceed 5% of total
fund).
• The investment policy permits a maximum of 25% of the fair value of the fund securities to
be invested in foreign securities.
• At September 30, 2017, 15.64% of the fair value of the fund was invested in international
mutual funds.
• All the international securities are denominated in U.S. dollars. There is no foreign currency
risk.
Money Weighted Rate of Return and Target Allocation
For the fiscal years ended September 30, 2017 and 2016, the overall annual money -weighted rate of
return (long-term expected real rate of return) on the Public Safety Pension Plan investments (both
Police Officers' and Firefighters') was 10.58% and 7.69% respectively. The money -weighted rate
of return expresses investment performance, net of investment manager and consultant expenses
adjusted for the changing amounts actually invested.
The long-term expected rate of return on pension plan investments, shown below by asset class, is
developed using best -estimate ranges of expected future real rates of return (expected returns, net
of pension plan investment expenses and inflation). These ranges are combined to produce the long
term expected rate of return by weighting the expected future real rates of return by the target asset
allocation percentage and by adding expected inflation.
C[:
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Best estimates of arithmetic real rates of return for each major asset class included in the target
asset allocation as well as the
long-term expected real rate of return as of September 30, 2017 and
2016 are as follows:
2.5%
Diversified Fixed Income
Long -Term Expected Real
0%-10%
Target Rate of Return
Asset Class
Allocation Range 2017 2016
Domestic Equity
50% 45%-55% 7.5% 7.5%
International Equity
15% 10%-20% 8.5% 8.5%
Total Equities
65% 60%-70%
Domestic Core Fixed Income
20%
15%-25%
2.5%
2.5%
Diversified Fixed Income
5%
0%-10%
3.5%
3.5%
Total Fixed Income
25%
20%-30%
Core Real Estate
10%
5%-15%
4.5%
4.5%
Investments — General Employees' Pension Trust Fund
Investment Policy Statement
The General Employees' Pension Board of Trustees, as fiduciaries, adopts an Investment Policy
Statement and directs that it applies to all assets under their control. It is the Board's intention to
review the policy at least annually subsequent to the actuarial report and to amend this statement to
reflect any changes in philosophy, objectives, or guidelines. When the Investment Manager feels
that the specific objectives defined in the statement cannot be met, or the guidelines constrict
performance, the Investment Manager will present a formal modified investment policy statement
to the Board of Trustees at a meeting for the Board's review. Once the Board has adopted, the new
investment policy goes into effect 31 days after it has been filed with the State of Florida. There
were no changes to the Investment Policy Statement for the fiscal year ended September 30, 2017
and investments of the General Employees' Pension Trust Fund were in compliance with the
investment policy.
Fair Value Hierarchy
The Plan categorizes its fair value measurement within the fair value hierarchy established by
generally accepted accounting principles. The hierarchy is based on valuation input used to
measure the fair value of an asset:
Level 1 - investments reflect unadjusted quoted prices in active markets for identical assets;
Level 2 - investments reflect prices that are based on inputs that are either directly or indirectly
observable for an asset (including quoted prices for similar assets), which may include
inputs in markets that are not considered to be active;
Level 3 - investments reflect prices based upon unobservable inputs for an asset.
The investment pricing transparency determines the category within the hierarchy and should not
be observed at the investment risk. The custodian bank's (primary external pricing vendors) quoted
prices were used to determine level classification based on the fair value hierarchy.
EVA
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Debt and equity securities classified as Level 1 of the fair value hierarchy are valued using quoted
prices at September 30, 2017 (or the most recent market close date if the markets are closed on
September 30) in active markets. This includes common stock, mutual funds and fixed income
funds.
Debt securities are valued using pricing inputs that reflect the assumptions market participants
would use to price an asset or liability and are developed based on market data obtained from
sources independent of the reporting equity (Level 2). This includes U.S. Treasury bonds and notes,
U.S. agencies, mortgage backed securities, municipal bonds and corporate obligations, including
asset backed securities.
The Real Estate Fund - this fund enters into real estate partnerships with various joint venture
partners. Fair value represents the Fund's share of the net asset value of the investment. The fund
had no outstanding commitments.
As of September 30, 2017 the General Employees' Pension Trust Fund has the following recurring
fair value instruments:
Quoted Prices in
Significant
Significant
Active Markets for
Observable
Unobserva
Identical Assets
Inputs
ble Inputs
9/30/17 (Level 1)
(Level 2)
(Level 3)
Equities
Common stocks $ 1,252,323 $ 1,252,323 $
Mutual funds equities 1,986,170 1,986,170
Total equities 3,238,493 3,238,493
Fixed income
Corporate bonds
360,298
360,298
U.S. Treasury bills
181,788
181,788
U.S. Agences
259,945
259,945
Bond mutual fund
240,275
240,275
Exchange traded funds
104,958
104,958
Total fixed income
1,147,264
345,233
802,031
Total investments at fair value $
4,385,757 $
3,583,726 $
802,031 $ -
Investments at net asset value
Redemption
Redemption
(NAV)
Frequency
Notice Period
Real Estate Fund
374,670
Quarterly
30 days
Total investments $
4,760,427
M
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
At September 30, 2017, the Village of Tequesta's General Employees' Pension Trust Fund had the
following demand deposits and investments:
Weighted Credit Percent
Reported Average Rating Percent of Net
Value Maturity (Moody) Distribution Position
Cash
$ 105,871
2.15%
2.15%
Short Term Money Market Fund
51,000
1.04%
1.03%
Total Cash and Cash equivalents
156,871
Equities
Common stocks
1,252,323
25.47%
25.38%
Mutual funds
1,986,170
40.39%
40.25%
Total Equities
3,238,493
Fixed Income
Corporate Bonds:
7.89 years
Bonds
25,201
A2
0.51%
0.51%
Bonds
122,219
A3
2.49%
2.48%
Bonds
54,114
Baal
1.10%
1.10%
Bonds
117,135
Baa2
2.38%
2.37%
Bonds
41,629
Baa3
0.85%
0.84%
ETF - Exchange Traded Fund
104,958
2.13%
3.68%
U.S. Government Bonds
181,788
3.70%
2.13%
U.S. Agencies
259,945 6.10 years
Aaa
5.29%
5.27%
Mutual Fund
240,275
4.89%
4.87%
Total Fixed Income
1,147,264
Real Estate Fund
374,670
7.62%
7.59%
Total Investments
4,760,427
Total Cash and Investments
$ 4,917,298
100.00%
99.65%
Interest Rate Risk - the risk that changes in interest rates will adversely affect the fair value of an
investment in debt securities. Generally, the longer the time to maturity, the greater the exposure.
The Plan does not have a formal policy relating to interest rate risk, however;
• The established performance objectives require investment maturities to provide sufficient
liquidity to pay obligations as they become due.
• At September 30, 2017, the weighted average maturity in years for each investment type is
included in the preceding table and ranges from 6.10 to 7.89 years.
Credit Risk - the risk that a debt issuer will not fulfill its obligations.
The Plan limits exposure that a debt issuer will not fulfill its obligations by limiting investments
made or held in the fund to:
• Obligations issued by the U.S. Government or obligations guaranteed as to principal and
interest by the U.S. government or by an agency of the U.S. Government;
CLQ
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Bonds, stocks, or commingled funds administered by national or state banks, or other
evidences or indebtedness, issued or guaranteed by a corporation organized under the laws of
the United States, any state or organized territory of the United States, or District of
Columbia provided that the securities meet the following ranking criteria:
o Fixed income investments holding a rating in one of the four highest classifications by a
major rating service.
o Equities that are traded on a National Exchange.
Concentration of Credit Risk - the risk of loss attributed to the magnitude of an investment in a
single issuer. The Plan's investment policy limits exposure by:
• Limiting investments in common stock or capital stock of any one issuing company or
aggregate of any one issuing company to 5% of the outstanding capital stock of the company.
• Limiting the value of bonds issued by any single corporation not to exceed 10% of the total
fund.
• Limiting investments in corporate common stock and convertible bonds not to exceed 70%
of the fund assets at fair value.
• Limiting investments in foreign securities not to exceed 25% of the fair value of the fund.
Custodial Credit Risk — the risk that, in the event of the failure of the counterparty, the government
will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party. The Plan's investment policy limits exposure to this risk by:
Requiring all securities to be held by a third party custodian in the name of the Plan. As of
September 30, 2017, the Plan's investment portfolio was held with a third -party custodian.
Requiring securities transactions between a broker-dealer and the custodian involving
purchase or sale of securities by the transfer of money or securities to be made on a "delivery
vs. payment" basis to ensure that the custodian will have the security or money in hand at the
conclusion of the transaction.
Foreign Currency Risk - is the risk of an investment's value changing due to changes in currency
exchange rates. Exposure to foreign currency risk is low as:
• Foreign investments are through ADR's (shares listed in the U.S.), mutual funds (registered
in the U.S.), or Yankee bonds (traded in U.S. dollars).
• The investment policy permits a maximum of 25% of the fair value of the fund securities
(including equities and fixed income securities) to be invested in foreign securities.
• At September 30, 2017, 15.5% of the fair value of the fund was invested in international
equity mutual fund.
• All the international securities are denominated in U.S. dollars. There is no foreign currency
risk.
Money Weighted Rate of Return and Target Allocation
For the fiscal years ended September 30, 2017 and 2016, the overall annual money -weighted rate of
return (long-term expected real rate of return) on the General Employees' Pension Plan investments
was 12.52% and 3.97% respectively. The money -weighted rate of return expresses investment
performance, net of investment manager and consultant expenses adjusted for the changing
amounts actually invested.
50
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
The long-term expected rate of return on pension plan investments, shown below by asset class, is
developed using best -estimate ranges of expected future real rates of return (expected returns, net
of pension plan investment expenses and inflation). These ranges are combined to produce the long
term expected rate of return by weighting the expected future real rates of return by the target asset
allocation percentage and by adding expected inflation.
Best estimates of arithmetic real rates of return for each major asset class included in the target
asset allocation as well as the long-term expected real rate of return as of September 30, 2017 and
2016 are as follows:
Long -Term Expected Real
C. Receivables
Below is the detail of receivables for the general, water, and nonmajor enterprise fund including the
applicable allowances for uncollectible accounts:
Storm- Nonmajor
General Water water Funds Total
Accounts $ 223,188 $ 632,503 $ - $ 2,068 $ 857,759
Intergovernmental 178,492 265 2,239 2,907 183,903
Other taxes 48,504 - - - 48,504
Gross receivables 450,184 632,768 2,239 4,975 1,090,166
Less: allowance for
uncollectibles (17,280) (2,879) - - (20,159)
Net Total Receivables $ 432,904 $ 629,889 $ 2,239 $ 4,975 $1,070,007
51
Target
Rate of Return
Asset Class
Allocation
Range
2017
2016
Domestic Equity
50%
45%-55%
7.5%
7.5%
International Equity
15%
10%-20%
8.5%
8.5%
Total Equities
65%
60%-70%
Domestic Core Fixed Income
20%
15%-25%
2.5%
2.5%
Diversified Fixed Income
5%
0%-10%
3.5%
3.5%
Total Fixed Income
25%
20%-30%
Core Real Estate
10%
5%-15%
4.5%
4.5%
C. Receivables
Below is the detail of receivables for the general, water, and nonmajor enterprise fund including the
applicable allowances for uncollectible accounts:
Storm- Nonmajor
General Water water Funds Total
Accounts $ 223,188 $ 632,503 $ - $ 2,068 $ 857,759
Intergovernmental 178,492 265 2,239 2,907 183,903
Other taxes 48,504 - - - 48,504
Gross receivables 450,184 632,768 2,239 4,975 1,090,166
Less: allowance for
uncollectibles (17,280) (2,879) - - (20,159)
Net Total Receivables $ 432,904 $ 629,889 $ 2,239 $ 4,975 $1,070,007
51
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
D. Capital Assets
Capital assets activity for the fiscal year ended September 30, 2017, was as follows:
Beginning Ending
Balance Additions Deductions Balance
Governmental Activities
Capital assets not being depreciated:
Land $ 634,017 $ - $ - $ 634,017
Construction -in -progress 31,505 7,915 (31,505) 7,915
Total Capital Assets Not Being Depreciated 665,522 7,915 (31,505) 641,932
Capital assets being depreciated:
Buildings
8,043,526
-
8,043,526
Improvements other than buildings
2,385,930
8,504
2,394,434
Infrastructure
4,614,815
-
4,614,815
Machinery and equipment
4,374,107
265,088
(152,948)
4,486,247
Intangibles
201,377
106,222
307,599
Other K-9
25,763
-
25,763
Total Capital Assets Being Depreciated
19,645,518
379,814
(152,948)
19,872,384
1819
Less accumulated depreciation for:
Buildings
(2,525,182)
(201,091)
(2,726,273)
Improvements other than buildings
(1,197,522)
(89,858)
(1,287,380)
Infrastructure
(724,019)
(110,425)
(834,444)
Machinery and equipment
(3,206,737)
(289,490)
152,948
(3,343,279)
Intangibles
(184,553)
(27,445)
-
(211,998)
Other K-9
(9,202)
(3,680)
-
(12,882)
Total Accumulated Depreciation
(7,847,215)
(721,989)
152,948
(8,416,256)
Total Capital Assets Being Depreciated, Net
11,798,303
(342,175)
-
11,456,128
Governmental Activities Capital Assets, Net
$ 12,463,825
$ (334,260) $
(31,505)
$ 12,098,060
Depreciation expense was charged to the functions/programs of the governmental activities of the
Village as follows:
Governmental Activities
General government $ 95,503
Public safety 388,222
Transportation 183,961
Leisure services 54,303
Total Depreciation Expense - Governmental Activities $ 721,989
52
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Beginning
Balance
Business -type Activities:
Capital assets not being depreciated:
Land $ 83,335 $
Construction in progress 837,117
Total Capital Assets Not Being
Depreciated 920,452
Capital assets being depreciated:
Buildings
Improvements other than buildings
Infrastructure
Machinery & Equipment
Intangible
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings
Improvements other than buildings
Infrastructure
Machinery & Equipment
Intangible
Ending
Additions Deductions Balance
- $ - $ 83,335
- (837,117) -
- (837,117) 83,335
979,512
-
- 979,512
58,720
-
- 58,720
32,596,845
1,682,549
(170,400) 34,108,994
1,778,302
56,448
(1,469) 1,833,281
48,649
80,447
- 129,096
35,462,028
1,819,444
(171,869) 37,109,603
(671,582)
(20,440)
(692,022)
(22,314)
(2,349)
- (24,663)
(17,331,211) (713,477) 170,400 (17,874,288)
(1,338,004) (177,078) 1,469 (1,513,613)
(4,865) (17,775) - (22,640)
Total Accumulated Depreciation (19,367,976) (931,119) 171,869 (20,127,226)
Total Capital Assets Being
Depreciated, Net 16,094,052 888,325 - 16,982,377
Business -type Activity Capital Assets,
Net $ 17,014,504 $ 888,325 $ (837,117) $ 17,065,712
Depreciation expense charged to the water and stormwater funds of the business -type activities was
$931,119.
53
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
E. Accrued Liabilities
Accrued liabilities reported by governmental funds at September 30, 2017, were as follows:
Salary and employee benefits
Other
Total Accrued Liabilities
F. Pension Obligations
Florida Retirement System (FRS) - a Statewide Local Government Employees' Retirement
System (SLGERS)
General Information. Full time employees hired before January 1, 1996 are eligible to participate in
the Florida Retirement System (FRS), as provided by Chapters 121 and 112, Florida Statutes, a
cost-sharing, multiple -employer defined benefit plan administered by the State Board of
Administration ("SBA"). The FRS provides retirement and disability benefits, annual cost of living
adjustments and death benefits to plan members and beneficiaries. A post -employment health
insurance subsidy is also provided to eligible employees. Benefits are established by Chapter 121,
Florida Statutes and Chapter 22B, Florida Administrative Code. Amendments to the law can only
be made by an act of the Florida Legislature.
The State of Florida issues a publicly available financial report that includes financial statements
and required supplementary information for the FRS. The latest available report may be obtained
by writing to the State of Florida Division of Retirement, Department of Management Services,
P.O. Box 9000, Tallahassee, Florida 32315-9000 or visiting the website at
www.dms.Myflorida.com/workforce operations/retiremept/publications.
Plan Description: The FRS is a cost-sharing multiple -employer defined benefit pension plan, with a
Deferred Retirement Option Program ("DROP") for eligible employees.
Benefits Provided — Benefits under the Pension Plan are computed on the basis of age, average final
compensation, and service credit. For Pension Plan members enrolled before July 1, 2011: Regular
class members who retire at or after age 62 with at least six years of credited service or 30 years of
service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.6%
of their final average compensation based on the five highest years of salary, for each year of
credited service. Vested members with less than 30 years of service may retire before age 62 and
receive reduced retirement benefits. Special Risk Administrative Support class members who retire
at or after age 55 with a least six years of credited service or 25 years of service regardless of age
are entitled to a retirement benefit payable monthly for life, equal to 1.6% of their final average
compensation based on the five highest years of salary, for each year of credited service. Special
Risk class members (sworn law enforcement officers, firefighters, and correctional officers) who
retire at or after age 55 with at least six years of credited service, or with 25 years of service
54
Total
General
Governmental
Fund
Funds
$ 220,704
$ 220,704
4,990
4,990
$ 225,694
$ 225,694
Florida Retirement System (FRS) - a Statewide Local Government Employees' Retirement
System (SLGERS)
General Information. Full time employees hired before January 1, 1996 are eligible to participate in
the Florida Retirement System (FRS), as provided by Chapters 121 and 112, Florida Statutes, a
cost-sharing, multiple -employer defined benefit plan administered by the State Board of
Administration ("SBA"). The FRS provides retirement and disability benefits, annual cost of living
adjustments and death benefits to plan members and beneficiaries. A post -employment health
insurance subsidy is also provided to eligible employees. Benefits are established by Chapter 121,
Florida Statutes and Chapter 22B, Florida Administrative Code. Amendments to the law can only
be made by an act of the Florida Legislature.
The State of Florida issues a publicly available financial report that includes financial statements
and required supplementary information for the FRS. The latest available report may be obtained
by writing to the State of Florida Division of Retirement, Department of Management Services,
P.O. Box 9000, Tallahassee, Florida 32315-9000 or visiting the website at
www.dms.Myflorida.com/workforce operations/retiremept/publications.
Plan Description: The FRS is a cost-sharing multiple -employer defined benefit pension plan, with a
Deferred Retirement Option Program ("DROP") for eligible employees.
Benefits Provided — Benefits under the Pension Plan are computed on the basis of age, average final
compensation, and service credit. For Pension Plan members enrolled before July 1, 2011: Regular
class members who retire at or after age 62 with at least six years of credited service or 30 years of
service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.6%
of their final average compensation based on the five highest years of salary, for each year of
credited service. Vested members with less than 30 years of service may retire before age 62 and
receive reduced retirement benefits. Special Risk Administrative Support class members who retire
at or after age 55 with a least six years of credited service or 25 years of service regardless of age
are entitled to a retirement benefit payable monthly for life, equal to 1.6% of their final average
compensation based on the five highest years of salary, for each year of credited service. Special
Risk class members (sworn law enforcement officers, firefighters, and correctional officers) who
retire at or after age 55 with at least six years of credited service, or with 25 years of service
54
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
regardless of age, are entitled to a retirement benefit payable monthly for life, equal to 3.0% of their
final average compensation based on the five highest years of salary for each year of credited
service. Senior Management Service class members who retire at or after age 62 with at least six
years of credited service or 30 years of service regardless of age are entitled to a retirement benefit
payable monthly for life, equal to 2.0% of their final average compensation based on the five
highest years of salary for each year of credited service. Elected Officers' class members who retire
at or after age 62 with at least six years of credited service or 30 years of service regardless of age
are entitled to a retirement benefit payable monthly for life, equal to 3.0% (3.33% for judges and
justices) of their final average compensation based on the five highest years of salary for each year
of credited service.
For Plan members enrolled on or after July, 2011, the vesting requirement is extended to eight years
of credited service for all these members and increasing normal retirement to age 65 or 33 years of
service regardless of age for Regular, Senior Management Service, and Elected Officers' class
members, and to age 60 or 30 years of service regardless of age for Special Risk and Special Risk
Administrative Support class members. Also, the final average compensation for all these members
will be based on the eight highest years of salary.
As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the Pension
Plan before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual
cost -of -living adjustment is three percent per year. If the member is initially enrolled before July 1,
2011, and has service credit on or after July 1, 2011, there is an individually calculated
cost -of -living adjustment. The annual cost -of -living adjustment is a proportion of three percent
determined by dividing the sum of the pre -July 2011 service credit by the total service credit at
retirement multiplied by three percent. Plan members initially enrolled on or after July 1, 2011,
will not have a cost -of -living adjustment after retirement.
In addition to the above benefits, the DROP program allows eligible members to defer receipt of
monthly retirement benefit payments while continuing employment with a FRS employer for a
period not to exceed 60 months after electing to participate. Deferred monthly benefits are held in
the FRS Trust Fund and accrue interest. There are no required contributions by DROP participants.
Contributions — Effective July 1, 2011, all enrolled members of the FRS, other than DROP
participants, are required to contribute three percent of their salary to the FRS. In addition to
member contributions, governmental employers are required to make contributions to the FRS
based on state-wide contribution rates established by the Florida Legislature. These rates are
updated as of July 1 of each year. Contribution rates during the 2016-2017 fiscal year were as
follows:
Class Employee Employer (1)
Regular 3% 5.80%
Special Risk 3% 20.85%
Special Risk Administrative Support 3% 26.34%
Elected County, City Officers' 3% 40.75%
Senior Management Service 3% 20.05%
DROP participants - 11.33%
Reemployed Retiree (2) (2)
55
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Notes: (1) This rates include the normal cost and unfunded actuarial liability contributions but do
not include the 1.66 percent contribution for the Retiree Health Insurance Subsidy and
the fee of 0.06 percent for administration of the FRS Investment Plan and provision of
educational tools for both plans.
(2) Contribution rates are dependent upon retirement class in which reemployed.
The Village's total contributions to the Pension Plan totaled $49,477 for the fiscal year ended
September 30, 2017. This excludes the HIS defined benefit pension plan contributions.
Pension Liabilities, Pension Expense, Deferred Outflows of Resources, and Deferred Inflows
of Resources
The total pension liability for the FRS was determined by an actuarial valuation as of the valuation
date of July 1, 2017, calculated based on the discount rate and actuarial assumptions below. The
total pension liability is calculated using the Individual Entry Age Normal cost allocation method,
which differs from the Ultimate Entry Age Normal cost allocation method used in the actuarial
valuation for funding purposes for the System. The net pension liability was measured as of June
30, 2017.
At September 30, 2017, the Village reported a liability of $561,097 for its proportionate share of
the Pension Plan's net pension liability. The Village's proportionate share of the net pension
liability was based on the Village's 2016-2017 fiscal year contributions relative to the 2015-2016
fiscal year contributions of all participating members. At June 30, 2017 Measurement Date, the
Village's proportionate share was 0.001896924%, which was a decrease of 0.00037% from its
proportionate share measure as of June 30, 2016.
For the fiscal year ended September 30, 2017, the Village recognized pension expense of $93,454
as follows:
Service Cost
$ 39,338
Interest Cost
236,815
Effect of Plan Changes
1,749
Effect of economic/demographic gains or losses
(difference between expected and actuarial experience)
10,620
Effect of assumptions changes or inputs
37,657
Member contributions
(14,129)
Projected investment earnings
(199,780)
Changes in proportion and differences between
contributions and proportionate share of contributions
Net difference between projected and actual investment earnings
(19,164)
Administrative expenses
348
Total
$ 93,454
We
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
In addition, the Village reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following sources:
Deferred Inflows/Outflows of Resources
Effect of economic/demographic gains or losses
(differences between expected and actual experience)
Effect of assumptions changes or inputs
Changes in proportion and differences between
contributions and proportionate share of contributions
Net differences between projected and actual investment
earnings
Village Pension Plan contributions subsequent to
the measurement date
Total
Deferred
Deferred
Inflows
Outflows
2019
23,357
$ (3,108) $
51,495
-
188,568
(170,912)
3,769
(13,905)
-
-
10,250
$ (187,925) $
254,082
The deferred outflows of resources related to the Pension Plan contributions subsequent to the
measurement date, totaling $10,250 will be recognized as a reduction of the net pension liability in
the fiscal year ended September 30, 2018.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related
to the Pension Plan will be recognized in pension expense as follows:
Fiscal Year
Ending
Amount
2018
$ (24,911)
2019
23,357
2020
20,416
2021
(2,122)
2022
28,756
Thereafter
10,411
$ 55,907
Discount Rate
The discount rate used to measure the total pension liability was 7.10%. The Pension Plan's
fiduciary net position was projected to be available to make all projected future benefit payments of
current active and inactive employees. Therefore, the discount rate for calculating the total pension
liability is equal to the long-term expected rate of return.
Discount rate 7.10%
Long-term expected rate of return, net of investment expense 7.10%
Municipal bond rate N/A
57
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Actuarial Assumptions
The actuarial assumptions that determined the total pension liability as of June 30, 2017, were
based on the results of an actuarial experience study for the period July 1, 2008 — June 30, 2013.
Valuation Date
Measurement date
Inflation
Salary increases including inflation
Mortality
Actuarial cost method
July 1, 2017
June 30, 2017
2.60%
3.25%
Generational RP -2000 with Projection Scale BB
Individual Entry Age
Sensitivity Analysis
The following presents the Village's portion of the net pension liability of the FRS, calculated
using the discount rate of 7.10%, as well as what the FRS's net pension liability would be if it were
calculated using a discount rate that is one percentage point lower (6.10%) or one percentage point
higher (8.10%) than the current rate.
1 % Current 1 %
Decrease Discount Rate Increase
6.10% 7.10% 8.10%
Village's proportionate share of
net pension liability $ 1,015,552 $ 561,097 $ 183,796
Long -Term Expected Rate of Return
The long-term expected rate of return assumpion of 7.10% on Pension Plan investments was not
based on historical returns, but instead is based on a forward -look capital market economic model.
The allocation policy's description of each asset class was used to map the target allocation to the
asset classes shown below. Each asset class assumption is based on a consistent set of underlying
assumptions and includes an adjustment for the inflation assumption. The target allocation and best
estimated of arithmetic and geometric real rates of return for each major asset class are summarized
in the following table:
Assumed Inflation - Mean
2.6% 1.9%
W
Compound
Annual
Annual
Target
Arithmetic
(Geometric)
Standard
Asset Class
Allocation
Return
Return
Deviation
Cash
1%
3.0%
3.0%
1.8%
Fixed income
18%
4.5%
4.4%
4.2%
Global equity
53%
7.8%
6.6%
17.0%
Real estate
10%
6.6%
5.9%
12.8%
Private equity
6%
11.5%
7.8%
30.0%
Strategic investments
12%
6.1%
5.6%
9.7%
Assumed Inflation - Mean
2.6% 1.9%
W
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Pension Plan Fiduciary Net Position — Detailed information regarding the Pension Plan's fiduciary
net position is available in the separately issued FRS Pension Plan and Other State -Administered
Systems Comprehensive Annual Financial Report.
Payables to the Pension Plan — At September 30, 2017 the Village reported a payable in the
amount of $1,051 employee and $6,022 employer for outstanding contributions to the Pension Plan,
both FRS and Retiree Health Insurance Subsidy (HIS).
The Retiree Health Insurance Subsidy (HIS) Program
Plan Description — HIS Program is a cost-sharing multiple -employer defined benefit pension plan
established under Section 112.363, Florida Statutes. The Florida Legislature establishes and
amends the contribution requirements and benefit terms of the HIS Program. The benefit is a
monthly payment to assist retirees of state -administered retirement systems in paying their health
insurance costs and is administered by the Department of Management Services, Division of
Retirement.
Benefits Provided — For the fiscal year ended June 30, 2017, eligible retirees and beneficiaries
received a monthly HIS payment equal to the number of years of creditable service completed at the
time of retirement multiplied by $5. The payments are at least $30 but not more than $150 per
month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS benefit, a
retiree under a state -administered retirement system must provide proof of eligible health insurance
coverage, which can include Medicare.
Contributions — For the fiscal year ended June 30, 2017, the contribution rate was 1.66% of payroll
pursuant to section 112.363, Florida Statutes. HIS contributions are deposited in a separate trust
fund from wich HIS payments are authorized.
The Village's total contributions to the HIS Plan totaled $6,501 for the fiscal year ended September
30, 2017.
Pension Liabilities, Pension Expense, Deferred Outflows of Resources, and Deferred Inflows
of Resources
Actuarial valuations for the HIS Program are conducted biennially. The July 1, 2016, HIS valuation
is the most recent valuation and was used to develop the liabilities for June 30, 2017.
At September 30, 2017, the Village reported a liability of $129,440 for its proportionate share of
the Pension Plan's net pension liability, of which $3,640 represents Village's net pension liability
due withi one year. The Village's proportionate share of the net pension liability was based on the
Village's 2016-17 fiscal year contributions relative to the 2015-16 fiscal year contributions of all
participating members. At June 30, 2017, the Village's proportionate share was 0.001210575%,
which was a decrease of 0.00039% from its proportionate share measured as of June 30, 2016.
The total pension liability was determined by an actuarial valuation as of the valuation date,
calculated based on the discount rate and actuarial assumptions below, and was then projected to
the measurement date. Any significant changes during this period have been reflected as prescribed
by GASB No. 67.
Ut
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
For the fiscal year ended September 30, 2017, the Village recognized pension expense of $9,845 as
follows:
Service Cost
Interest Cost
Effect of Plan Changes
Effect of economic/demographic gains or losses
(difference between expected and actuarial experience)
Effect of assumptions changes or inputs
Member contributions
Projected investment earnings
Changes in proportion and differences between
contributions and proportionate share of contributions
Net difference between projected and actual investment earnings
Administrative expenses
Total
$ 3,687
4,085
(52)
2,140
(50)
33
2
$ 9,845
In addition, the Village reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following sources:
Deferred Deferred
Deferred Inflows/Outflows of Resources Inflows Outflows
Effect of economic/demographic gains or losses
(differences between expected and actual experience)
Effect of assumptions changes or inputs
Changes in proportion and differences between
contributions and proportionate share of contributions
Net differences between projected and actual investment
earnings
Village Pension Plan contributions subsequent to
the measurement date
Total
$ (270) $ -
(11,193) 18,195
(75,165) -
- 72
- 1,395
$ (86,628) $ 19,662
The deferred outflows of resources related to the HIS Plan, totaling $1,395 resulting from Village
contributions to the HIS Plan subsequent to the measurement date, will be recognized as a
reduction of the net pension liability in the fiscal year ended September 30, 2018. Other amounts
reported as deferred outflows of resources and deferred inflows of resources related to the HIS
CII
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Plan will be recognized in pension expense as follows:
Fiscal Year
Ending
Amount
2018
$ (13,955)
2019
(13,968)
2020
(13,974)
2021
(11,334)
2022
(6,865)
Thereafter
(8,265)
$ (68,361)
Discount Rate
The discount rate used to measure the total pension liability was 3.58%. In general, the discount
rate for calculating the total pension liability is equal to the single rate equivalent to discounting at
the long-term expected rate of return for benefit payments prior to the projected depletion date.
Because the HIS benefit is essentially funded on a pay-as-you-go basis, the depletion date is
considered to be immediate. The single equivalent discount rate is equal to the municipal bond rate
selected by the FRS Actuarial Assumption Conference. The Bond Buyer General Obligation
20 -Bond Municipal Bond Index was adopted as the applicable municipal bond index.
Discount rate 3.58%
Long-term expected rate of return, net of investment expense N/A
Bond Buyer General Obligation 20 -Bond Municipal Bond Index 3.58%
Actuarial Assumptions
The actuarial assumptions that determined the total pension liability as of June 30, 2017, were
based on certain results of an actuarial experience study of the FRS for the period July 1, 2008 -
June 30, 2013.
Valuation Date
Measurement date
Inflation
Salary increases including inflation
Mortality
Actuarial cost method
July 1, 2016
June 30, 2017
2.60%
3.25%
Generational RP -2000 with Projection Scale BB;
details in valuation report
Individual Entry Age
C'i
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Sensitivity Analysis
The following presents the net pension liability of the HIS, calculated using the discount rate of
3.58%, as well as what the HIS's net pension liability would be if it were calculated using a
discount rate that is one percentage point lower (2.58%) or one percentage point higher (4.58%)
than the current rate.
1% Current 1%
Decrease Discount Rate Increase
2.58% 3.58% 4.58%
Village's proportionate share of
net pension liability $ 147,708 $ 129,440 $ 114,224
Pension Plan Fiduciary Net Position - Detailed information regarding the HIS Plan's fiduciary net
position is available in the separately issued FRS Pension Plan and Other State -Administered
Systems Comprehensive Annual Financial Report.
The Village of Tequesta Single -Employer Defined Benefit Pension Plans
Overview: The Village maintains two single -employer defined benefit pension plans, the Public
Safety Officers' Pension Trust Fund and the General Employees' Pension Trust Fund. The sole
administration of and responsibility for the proper operation of the retirement system is vested in
The Board of Trustees. The defined benefit pension plans do not issue stand alone financial
statements.
General Employees' Pension Board consists of five Trustees. Two are legal residents of the
municipality, appointed by the Village Council, and two are the full time General Employee
members. The fifth Trustee is selected by a majority vote of the other Trustees.
Public Safety Board consists of five Trustees. Two are legal residents of the municipality,
appointed by the Village Council, one is a full time police officer member, and one is full time
firefighter member. The fifth Trustee is selected by a majority vote of the other Trustees.
The Public Safety Officers' Pension Trust Fund receives contributions that may not be used to pay
benefits of all employee classes, therefore, two separate trust funds, the Firefighters' Pension Trust
Fund (FPTF) and the Police Officers' Pension Trust Fund (PPTF) are reflected separately in the
financial statements, as well as the General Employee's Trust Fund (GPTF).
Effective February 1, 2013, the PPTF was not available to new employees, however, Police
officers, who began work with the Village after February 1, 2013 are able to participate in a defined
contribution plan (described in note 3F below).
Membership in the Village of Tequesta's defined benefit pension plans as of the actuarial valuation
date of October 1, 2016:
reN
FPTF
PPTF
GPTF
Number of:
Retirees and beneficiaries
4
2
3
Inactive, nonretired members
1
3
2
Active members
17
4
47
Total
22
9
52
reN
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Funding Policies are presented below under each of the plans.
Actuarial Assumptions and Net Pension Liability (NPL)
The actuarial valuation of the liabilities for the FPTF, PPTF and GPTF as of the September 30,
2016 measurement date were determined as of the beginning of the year, October 1, 2015 (based on
actuarial valuation results as reported in the October 1, 2015 actuarial valuation). Using a
measurement date of September 30, 2016 allows for timelier reporting at the end of the year. The
GPTF report was dated January 12, 2016 and the FPTF and PPTF reports were dated August 1,
2016. These liabilities are used for GASB Statement No. 68 reporting for the reporting period
ending September 30, 2017.
The total pension liability for the Village's defined benefit pension plans was determined using the
following actuarial methods and assumptions, applied to all prior periods included in the
measurement period. Actuarially determined contribution rates are calculated as of October 1, two
years prior to the end of the fiscal year in which contributions are reported. If significant changes
occur during the year, such as benefit changes or changes in assumptions or methods, these would
be noted in the footnotes.
Pension Expense
Fiscal Year Ended September 30, 2017
Based on Measurement Period Ended September 30, 2016
Service Cost
Interest on the Total Pension Liability
Current -Period benefit Changes
Employee Contributions (made negative for
additions here)
Projected Earnings on Plan Investments (made
negative for additions here)
Administrative Expense
Other Changes in Total Pension Liability
Recognition of Outflow (Inflow) of Recourses
due to Liabilities
Recognition of Outflow (Inflow) of Recourses
due to Assets
Total Pension Expense
FPTF
FPTF
PPTF
GPTF
Actuarial Valuation Date
Oct. 1, 2015
Oct. 1, 2015
Oct. 1, 2015
Measurement Date of the net pension liability
Sep. 30, 2016
Sep. 30, 2016
Sep. 30, 2016
Village's Fiscal Year Ended Date for Reporting
(232,888)
(277,063)
27,450
Purposes
Sep. 30, 2017
Sep. 30, 2017
Sep. 30, 2017
Date of the Actuarial Report
Jan. 12, 2016
Aug. 1, 2016
Aug. 1, 2016
Pension Expense
Fiscal Year Ended September 30, 2017
Based on Measurement Period Ended September 30, 2016
Service Cost
Interest on the Total Pension Liability
Current -Period benefit Changes
Employee Contributions (made negative for
additions here)
Projected Earnings on Plan Investments (made
negative for additions here)
Administrative Expense
Other Changes in Total Pension Liability
Recognition of Outflow (Inflow) of Recourses
due to Liabilities
Recognition of Outflow (Inflow) of Recourses
due to Assets
Total Pension Expense
FPTF
PPTF
GPTF
$ 348,504 $
110,495 $
359,231
778,642
201,452
285,954
(68,982)
(17,067)
(134,829)
(623,228)
(232,888)
(277,063)
27,450
27,026
44,359
731
(84,927)
(26,652)
100,403 25,845 58,445
$ 563,520 $ 29,936 $ 309,445
roil
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
The deferred outflow of resources, resulting from the Village's contributions to the Plans
subsequent to the measurement date of September 30, 2016 will be recognized as a reduction of the
Village's net pension liability in the fiscal year ended September 30, 2018. The Village reported
deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources:
Fire:
Deferred Outflows Deferred Inflows
of Resources of Resources
Difference between expected and actual experience $ 79,487 $ (347,533)
Changes in assumptions -
Net difference between projected and actual
earnings on pension plan investments 587,825 (16,105)
Contribution subsequent to measurement date 358,578
Total $ 1,025,890 $ (363,638)
Police:
Difference between expected and actual experience $
Changes in assumptions
Net difference between projected and actual
earnings on pension plan investments
Contribution subsequent to measurement date
Total $
General:
Difference between expected and actual experience $
Changes in assumptions
Net difference between projected and actual
earnings on pension plan investments
Contribution subsequent to measurement date
Total $
Deferred Outflows Deferred Inflows
of Resources of Resources
- $ (461,381)
188,775 (62,124)
41,223
229,998 $ (523,505)
Deferred Outflows Deferred Inflows
of Resources of Resources
- $ (149,976)
246,174 (35,866)
305,529
551,703 $ (185,842)
CZ!
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Net Deferred Inflows and Deferred Outflows of Resources by Year to be Recognized in
Future Pension Expenses
Net Deferred Inflows and Outflows of
Resources
Year Ending September 30, FPTF PPTF GPTF
2018
2019
2020
2021
2022
Thereafter
Total
Net Pension Liability (Asset)
$ 101,134 $ (59,082) $ 31,793
101,133
(59,083)
31,791
109,184
(57,465)
49,725
3,513
(99,651)
(9,609)
725
(59,449)
(26,652)
(12,015)
-
(16,716)
$ 303,674 $ (334,730) $ 60,332
Below is a summary of components of the net pension liability (asset), by Plan, which was
measured as of September 30, 2016 (measurement date in accordance with GASB Statement No.
68).
Fire Police General
Measurement Year Ended September 30, 2016 2016 2016
Total Pension Liability
Plan Net Position
Net Pension Liability (Asset)
Plan Net Position as a % of Total
Pension Liability
$ 10,597,615 $ 2,696,683 $ 4,042,171
8,827,021 3,386,147 4,015,694
$ 1,770,594 $ (689,464) $ 26,477
83.29% 125.57% 99.34%
rev
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
In accordance with GASB Statement No. 67, information as of September 30, 2017 has been
disclosed:
Fire Police General
Measurement Year Ended September 30, 2017 2017 2017
Total Pension Liability
$ 11,276,747 $
2,590,022 $
4,947,123
Plan Net Position
10,055,100
3,754,955
4,935,148
Net Pension Liability (Asset)
$ 1,221,647 $
(1,164,933) $
11,975
Plan Net Position as a % of Total
Pension Liability 89.17% 144.98% 99.76%
Below is a detail of the net changes in pension liability (asset):
FIREFIGHTERS' PENSION TRUST
CHANGES IN NET PENSION LIABILITY
Balances at September 30, 2015
Changes for the year:
Service cost
Interest
Benefit changes
Differences between expected
and actual experience
Contributions - employer
Contributions - state
Contributions - employee
Net investment Income
'Benefit payments, including refunds
of employee contributions
Administrative expense
Other (increase in State reserves)
Net Changes
Balances at September 30, 2016
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability (Asset)
$ 10,252,464 $ 8,401,715 $ 1,850,749
348,504 -
778,642 -
300,255 -
(401,835) -
- 60,162
394,709
- 68,982
- 609,318
(438,149) (438,149)
(27,450)
(242,266) (242,266)
345,151 $ 425,306
$ 10,597,615 8,827,021 $
348,504
778,642
300,255
(401,835)
(60,162)
(394,709)
(68,982)
(609,318)
27,450
(80,155)
1.770.594
CS:
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
POLICE OFFICERS' PENSION TRUST
CHANGES IN NET PENSION LIABILITY (ASSET)
Balances at September 30, 2015
Changes for the year:
Service cost
Interest
Changes of Assumptions
Differences between expected
and actual experience
Contributions - employer
Contributions - state
Contributions - members
Net investment income
Benefit payments, including refunds
of employee contributions
Administrative expense
Net changes
Balances at September 30, 2016
(226,384) - (226,384)
- 38,638 (38,638)
- 17,067 (17,067)
- 306,504 (306,504)
(79,746) (79,746)
- (27,026)
81,280 255,437
$ 2,696,683 $ 3,386,147 $
27,026
174,157
689,464
CS
Increase (Decrease)
Total Pension
Plan Fiduciary
Net Pension
Liability
Net Position
Liability (Asset)
$ 2,615,403
$ 3,130,710 $
(515,307)
110,495
-
110,495
201,452
-
201,452
75,463
-
75,463
(226,384) - (226,384)
- 38,638 (38,638)
- 17,067 (17,067)
- 306,504 (306,504)
(79,746) (79,746)
- (27,026)
81,280 255,437
$ 2,696,683 $ 3,386,147 $
27,026
174,157
689,464
CS
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
GENERAL EMPLOYEES' PENSION TRUST
CHANGES IN NET PENSION LIABILITY
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
Balances at September 30, 2015 $ 3,469,898 $ 3,564,490 $ (94,592)
Changes for the year:
Service cost
Interest
Differences between expected
and actual experience
Contributions - employer
Contributions - member
Net investment income
Benefit payments, including refunds
of employee contributions
Administrative expense
Net changes
Balances at September 30, 2016
359,231 - 359,231
285,954 - 285,954
(40,094) - (40,094)
- 201,704 (201,704)
- 134,829 (134,829)
- 191,848 (191,848)
(32,818) (32,818) -
- (44,359) 44,359
572,273 451,204 121,069
$ 4,042,171 $ 4,015,694 $ 26,477
Sensitivity of the Net Pension Liability (Asset) to Changes in the Discount Rate
A single discount rate of 7% as of September 30, 2017 and 7.5% for 2016 was used to measure the
total pension liability. This single discount rate was based on the expected rate of return on pension
plan investments of 7%. The projection of cash flows used to determine this single discount rate
assumed that plan member contributions will be made at the current contribution rate and that
employer contributions will be made at rates equal to the difference between the total actuarially
determined contribution rates and the member rate. Based on these assumptions, the pension plan's
fiduciary net position was projected to be available to make all projected future benefit payments of
current plan members. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the total pension
liability.
rfN
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Regarding the sensitivity of the net pension liability to changes in the single discount rate, the table
below presents the plan's net pension liability, calculated using a single discount rate of 7.50% and
7% as well as what the plan's net pension liability would be if it were calculated using a single
discount rate that is 1 -percentage -point lower or 1 -percentage -point higher (amounts in parenthesis
represent a net pension asset).
Firefighters' $ 3,114,908 $ 1,770,594 $ 644,432
Police Officers' (347,386) (689,464) (970,907)
General Employees' 565,614 26,477 (424,457)
In accordance with GASB Statement No. 67, information as of September 30, 2016 has been
disclosed:
Current Single
1,221,647 $
1%
Discount Rate
1 %
Decrease
Assumption
Increase
Fiscal Year Ended September 30, 2016 6.50%
7.50%
8.50%
Firefighters' $ 3,114,908 $ 1,770,594 $ 644,432
Police Officers' (347,386) (689,464) (970,907)
General Employees' 565,614 26,477 (424,457)
In accordance with GASB Statement No. 67, information as of September 30, 2016 has been
disclosed:
Firefighters'
Current Single
1,221,647 $
1%
Discount Rate
1 %
Decrease
Assumption
Increase
Fiscal Year Ended September 30, 2017 6.00%
7.00%
8.00%
Firefighters'
$ 2,650,334 $
1,221,647 $
26,342
Police Officers'
(856,458)
(1,164,933)
(1,417,779)
General Employees'
689,209
11,975
(554,219)
Village of Tequesta Public Safety Employees' Pension Plan (PSEPP)
Summary of Plan Provisions
A. Ordinances
The Plan was established under the Code of Ordinances for the Village of Tequesta, Florida,
Chapter 2, Article 111, Division 1, Section 2-61 (b), and was most recently amended under
Ordinance No. 15-15, passed and adopted on August 13, 2015. The Plan is also governed by
certain provisions of Chapter 175, Florida Statutes, Part VII, Chapter 112, Florida Statutes and the
Internal Revenue Code
B. Effective Date
Adopted August 13, 2015
C. Plan Year
October 1 through September 30
C:yvj
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
D. Type of Plan
Qualified, governmental defined benefit retirement plan; for GASB purposes it is a single employer
plan.
E. Eligibility Requirements
All full-time police officers hired before February 1, 2013 and all full-time firefighters are eligible
for membership on the date of employment.
F. Credited Service
Service is measured as the total number of years and completed months of a year as a police officer
or firefighter with the Village. No service is credited for any periods of employment for which the
member received a refund of their contributions.
G. Compensation
Total cash remuneration for services rendered as a police officer or firefighter. For firefighters and
police officers hired before October 1, 2010, overtime hours are limited to 300 hours per year,
effective October 1, 2013 for firefighters and October 1, 2014 for police officers. For firefighters
and police officers hired before October 1, 2010, payments for unused leave earned after October
1, 2013 for firefighters and October 1, 2014 for police officers are excluded from pensionable
salary. For firefighters hired on or after October 1, 2010, fixed monthly remuneration including
regular earnings, vacation pay and sick pay but excluding lump sum payments, overtime, bonuses,
incentives and longevity.
H. Average Final Compensation (AFC)
The average of Compensation over the highest 5 years during the last 10 years of Credited Service.
I. Normal Retirement
Eligibility - A member may retire on the first day of the month coincident with or next following
the earlier of:
(1) age 55 and 6 years of Credited Service (10 years of Credited Service for firefighters hired
on or after August 14, 2015), or
(2) age 52 and 25 years of Credited Service.
Benefit - For police officers and firefighters hired before August 14, 2015 firefighters:
70
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Credited Service only prior to September 1, 2015) (this section is being clarified to state, "for
police officers hired before February 2013 and firefighters hired before August 14, 2015.
3.0% of AFC multiplied by the first 6 years of Credited Service, plus
3.5% of AFC multiplied by the next 4 years of Credited Service, plus
4.0% of AFC multiplied by the next 5 years of Credited Service, plus
3.0% of AFC multiplied by the next 6 years of Credited Service, plus
2.0% of AFC multiplied by the next 4 years of Credited Service, plus
3.0% of AFC multiplied by all years of Credited Service over 25 years
I. Normal Retirement
For firefighters hired before August 14, 2015, Credited Service on or after September 1, 2015:
3.0% of AFC multiplied by years of Credited Service
For firefighters hired on or after August 14, 2015:
2.0% of AFC multiplied by the first 10 years of Credited Service
2.5% of AFC multiplied by all years of Credited Service over 10 years
Normal Form of Benefit - 10 Years Certain and Life thereafter; other options are also available.
COLA: None
Supplemental Benefit - All retirees and beneficiaries
supplemental benefit equal to $20 for each year of
maximum of $600. The supplemental benefit ceases
member or beneficiary.
J. Early Retirement
receiving pension benefits will be paid a
the member's Credited Service up to a
upon the later of the death of the retired
Eligibility - A member may elect to retire earlier than the Normal Retirement Eligibility upon
attainment of age 50 and 6 years of Credited Service (10 years of Credited Service for firefighters
hired on or after August 14, 2015).
Benefit - The Normal Retirement Benefit is reduced by 3.0% for each year by which the Early
Retirement date precedes the Normal Retirement date.
Normal Form of Benefit - 10 Years Certain and Life thereafter; other options are also available.
COLA: None
Supplemental Benefit - All retirees and beneficiaries
supplemental benefit equal to $20 for each year o
maximum of $600. The supplemental benefit ceases
member or beneficiary.
receiving pension benefits will be paid a
the member's Credited Service up to a
upon the later of the death of the retired
71
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
K. Delayed Retirement
Same as Normal Retirement taking into account compensation earned and service credited until the
date of actual retirement.
L. Service Connected Disability
Eligibility - Any member who becomes totally and permanently disabled and unable to render
useful and efficient service to the Village as a result from an act occurring in the performance of
service for the Village is immediately eligible for a disability benefit.
Benefit - The accrued Normal Retirement Benefit taking into account compensation earned and
service credited as of the date of disability with a minimum benefit equal to 42% of AFC.
Normal Form of Benefit - 10 Years Certain and Life thereafter.
COLA: None
Supplemental Benefit - All retirees and beneficiaries receiving pension benefits will be paid a
supplemental benefit equal to $20 for each year of the member's Credited Service up to a
maximum of $600. The supplemental benefit ceases upon the later of the death of the retired
member or beneficiary.
M. Non -Service Connected Disability
Eligibility - Any member who becomes totally and permanently disabled and unable to render
useful and efficient service to the Village is immediately eligible for a disability benefit.
Benefit - The accrued Normal Retirement Benefit taking into account compensation earned and
service credited as of the date of disability with a minimum benefit equal to 25% of AFC.
Normal Form of Benefit - 10 Years Certain and Life thereafter.
COLA: None
Supplemental Benefit - All retirees and beneficiaries receiving pension benefits will be paid a
supplemental benefit equal to $20 for each year of the member's Credited Service up to a
maximum of $600. The supplemental benefit ceases upon the later of the death of the retired
member or beneficiary.
N. Death in the Line of Duty
Eligibility - Members are eligible for survivor benefits regardless of Credited Service.
Benefit - The member's spouse or dependent child will receive the 50% of the member's AFC as of
the date of death.
Normal Form of Benefit - Payable for the life of the beneficiary.
72
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
COLA: None
Supplemental Benefit - All retirees and beneficiaries receiving pension benefits will be paid a
supplemental benefit equal to $20 for each year of the member's Credited Service up to a
maximum of $600. The supplemental benefit ceases upon the later of the death of the retired
member or beneficiary.
O. Other Pre -Retirement Death
Eligibility - Members are eligible for survivor benefits after the completion of 6 or more years of
Credited Service (10 years of Credited Service for firefighters hired on or after August 14, 2015).
Benefit - The beneficiary will receive the actuarial equivalent of the member's accrued Normal
Retirement Benefit taking into account compensation earned and service credited as of the date of
death.
Normal Form of Benefit - Payable for the life of the beneficiary.
COLA: None
Supplemental Benefit - All retirees and beneficiaries receiving pension benefits will be paid a
supplemental benefit equal to $20 for each year of the member's Credited Service up to a
maximum of $600. The supplemental benefit ceases upon the later of the death of the retired
member or beneficiary.
The beneficiary of a plan member with less than 6 years of Credited Service (10 years of Credited
Service for firefighters hired on or after August 14, 2015) at the time of death will receive a refund
of the member's accumulated contributions.
P. Post Retirement Death
Benefit determined by the form of benefit elected upon retirement.
Q. Optional Forms
In lieu of electing the Normal Form of benefit, the optional forms of benefits available to all
retirees are the Life Annuity option or the 50%, 66 2/3%, 75% and 100% Joint and Survivor
options.
R. Vested Termination
Eligibility - A member has earned a non -forfeitable right to Plan benefits after the completion of 6
years of Credited Service (10 years of Credited Service for firefighters hired on or after August 14,
2015).
Benefit - The benefit is the member's accrued Normal Retirement Benefit as of the date of
termination. Benefit begins on the member's Normal Retirement date. Alternatively, members can
elect a reduced Early Retirement benefit any time after age 50.
73
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Normal Form of Benefit - 10 Years Certain and Life thereafter; other options are also available.
COLA: None
Supplemental Benefit - Once in pay status, all retirees and beneficiaries receiving pension benefits
will be paid a supplemental benefit equal to $20 for each year of the member's Credited Service up
to a maximum of $600. The supplemental benefit ceases upon the later of the death of the retired
member or beneficiary.
Members terminating employment with less than 6 years of Credited Service (10 years of Credited
Service for firefighters hired on or after August 14, 2015) will receive a refund of their own
accumulated contributions.
S. Refunds
Eligibility - All members terminating employment with less than 6 years of Credited Service (10
years of Credited Service for firefighters on or after August 14, 2015) are eligible. Optionally,
vested members (those with 6 or more years of Credited Service — 10 years of Credited Service for
firefighters hired on or after August 14, 2015) may elect a refund in lieu of the vested benefits
otherwise due.
Benefit - Refund of the member's contributions.
T. Member Contributions
5% of Compensation for police officers and for firefighters through the fiscal year ending
September 30, 2016; 5.5% of Compensation for firefighters beginning in the fiscal year ending
September 30, 2017; thereafter, 6% of Compensation for firefighters. Employee contributions for
firefighters would revert back to 5% of Compensation if the Village opts out of participation in
Chapter 175.
U. State Contributions
Chapter 185 Premium Tax Revenue: None.
Chapter 175 Premium Tax Revenue: The Village is permitted to use all annual Chapter 175
revenue as a credit toward the Required Employer Contribution and to apply the Chapter 175
reserve of $545,142 to reduce the Required Employer Contributions for the fiscal years ending
September 30, 2016 through September 30, 2018, as determined by the Village.
V. Employer Contributions
Any additional amount determined by the actuary needed to fund the plan properly according to
State laws.
74
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
W. Cost of Living Increases
Not Applicable
X. 13th Check
Not Applicable
Y. Deferred Retirement Option Plan
Eligibility - Plan members who have met one of the following criteria are eligible for the DROP:
(1) age 55 and 6 years of Credited Service (10 years of Credited Service for firefighters hired
on or after August 14, 2015), or
(2) age 52 and 25 years of Credited Service.
Members must make a written election to participate in the DROP before the 27th year of
employment.
Benefit - The member's Credited Service and AFC are frozen upon entry into the DROP. The
monthly retirement benefit as described under Normal Retirement is calculated based upon the
frozen Credited Service and AFC. Firefighters have the optional sell back of vacation and sick
leave when entering the DROP.
Maximum DROP Period - The earlier of 5 years of participation in the DROP or 30 years of
employment.
There is one DROP plan participant with the assets balance rollforward of $292,172 at fiscal year
ending September 30, 2017.
Y. Deferred Retirement Option Plan
Interest Credited - The member's DROP account is credited on September 30 of each year with
investment earnings or losses at the same rate earned by the pension fund less any administrative
expenses. The interest rate will not be less than 0% nor greater than 7.5%.
Normal Form of Benefit - Lump Sum; other options are also available.
COLA: None
Z. Other Ancillary Benefits
There are no ancillary retirement type benefits not required by statutes but which might be deemed
a Village of Tequesta Public Safety Officers' Pension Trust Fund liability if continued beyond the
availability of funding by the current funding source.
75
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
AA. Changes from Previous Valuation
The results as of October 1, 2014 reflect Ordinance No. 1-15 (adopted March 12, 2015) and
Ordinance No. 15-15 (adopted August 13, 2015) as summarized on the next page.
Changes under Ordinance No. 1-15
• Payments for unused leave earned after October 1, 2013 for fighters and October 1, 2014 for
police officers are excluded from pensionable salary.
• Effective October 1, 2013 for firefighters and October 1, 2014 for police officers, overtime
hours are limited to 300 hours per year.
The Actuarial Impact Statement dated February 12, 2015 measured the financial effect of this
Ordinance.
Changes under Ordinance No. 15-15
For Firefighters:
• The benefit multiplier for current active members is changed to a flat 3% prospectively.
• The benefit multiplier for future new members is changed to 2% for the first ten years of
service and 2.5% thereafter.
• The vesting period is changed to ten years for future new members.
• The employee contribution rate is increased from 5% to 5.5% for the fiscal year ending
September 30, 2017 and to 6% thereafter. The employee contribution rate would revert back
to 5% if the Village opts out of participation in Chapter 175.
• The optional sell back of vacation and sick leave is allowed upon entering the DROP. For sick
leave, 25% of the available balance could be sold back for members with less than ten years
of service and 50% of the available balance could be sold back for members with at least ten
years of service. The maximum accrual of sick leave is 1,600 hours. For vacation leave, 100%
of the available balance could be sold back, with a maximum accrual of 320 hours.
• The Village is permitted to use all annual Chapter 175 reserve of $545,142 to reduce the
Required Employer contributions for the fiscal years ending September 30, 2016 through
September 30, 2018, as determined by the Village.
• The interest rate credited to DROP accounts continues to be the same as the net Pension Plan
rate of return; however, the rate credited cannot be less than 0% nor greater than 7.5%.
The Actuarial Impact Statement dated June 28, 2015 measured the financial effect of this
Ordinance.
Funding Policy. The contribution requirements of plan members and the Village are established
and may be amended by the Village Council. As explained above, plan members, with the
exception of DROP participants, are required to contribute a percentage of their annual covered
salary, the Village is permitted to use Chapter 175 revenue and the Village is required to contribute
at an actuarially determined rate. The employer contribution rate for the measurements ending
September 30, 2015 is 19.66% for police officers and 31.38% for firefighters. The amount of
insurance premium taxes collected and remitted to the Plan totaled $152,443 for fiscal year ended
September 30, 2016.
at
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
The Firefighters' Pension Trust Fund (part of the PSEPP) does not issue separate stand-alone
financial statements. Included below are the Statement of Fiduciary Net Position and the Statement
of Changes in Fiduciary Net Position as of and for the fiscal year ended September 30, 2017.
FIREFIGHTERS' PENSION TRUST FUND
STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2017
Assets
Cash and cash equivalents $ 186,715
Investments
Equities 6,587,464
Fixed income 2,354,909
Real Estate Funds 904,606
Total investments 9,846,979
Prepaid items 15,442
Contributions receivable 11,114
Accrued interest receivable 6,983
Total Assets 10,067,233
Liabilities
Accounts payable 12,133
Total Liabilities 12,133
Net Position Restricted for
Pension Benefits $ 10,055,100
77
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
FIREFIGHTERS' PENSION TRUST FUND
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30. 2017
Additions
Contributions:
Employer (including State) $ 358,577
Employee 79,564
Total Contributions 438,141
Investment earnings
Net (decrease) in fair of investments
(25,589)
Gain on sale of investments
657,131
Interest earnings
377,947
Total investment earnings
1,009,489
Less investment expenses
(35,237)
Net investment earnings
974,252
Miscellaneous
131
Total Additions
1,412,524
Deductions
Benefits paid 163,805
Refund of contributions 1,851
Administrative expenses 18,789
Total Deductions 184,445
Change in Net Position 1,228,079
Net Position Restricted for
Pension Benefits
Beginning 8,827,021
Ending $ 10,055,100
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
The Police Officers' Pension Trust Fund (part of the PSEPP) does not issue separate stand-alone
financial statements. Included below are the Statement of Fiduciary Net Position and the Statement
of Changes in Fiduciary Net Position as of and for the fiscal year ended September 30, 2017.
POLICE OFFICERS' PENSION TRUST FUND
STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30.2017
Assets
Cash and cash equivalents $ 73,537
Investments
Equities 2,461,803
Fixed income 880,126
Real Estate Funds 338,013
Total investments 3,679,942
Prepaid items 4,100
Contributions receivable 4,224
Accrued interest receivable 2,609
Total Assets 3,764,412
Liabilities
Accounts payable 9,457
Total Liabilities 9,457
Net Position Restricted for
Pension Benefits $ 3,754,955
M�
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
POLICE OFFICERS' PENSION TRUST FUND
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Additions
Contributions:
Employer $ 40,829
Employee 16,998
Total Contributions 57,827
Investment earnings
Net (decrease) in fair value of investments
(11,767)
Gain on sale of investments
250,801
Interest earnings
144,068
Total investment earnings
383,102
Less investment expenses
(25,756)
Net investment earnings
357,346
Miscellaneous
131
Total Additions
415,304
Deductions
Benefits paid 27,708
Administrative expenses 18,788
Total Deductions 46,496
Change in Net Position 368,808
Net Position Restricted for
Pension Benefits
Beginning 3,3 86,147
Ending $ 3,754,955
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
General Employees' Pension Plan
S. Ordinances
The Plan was established under the Code of Ordinances for the Village of Tequesta, Florida,
Chapter 2, Article 111, Division 1, Section 2-61 (a), and was most recently amended under Ordinance
No. 11-11 passed and adopted on June 9, 2011. The Plan is also governed by certain provisions of
Part VII, Chapter 112, Florida Statutes and the Internal Revenue Code.
T. Effective Date
December 11, 2003
U. Plan Year
October 1 through September 30
V. Type of Plan
Qualified, governmental defined benefit retirement plan; for GASB purposes it is a single employer
plan.
W. Eligibility Requirements
All full-time general employees who are not classified as police officers or firefighters are eligible
for membership on the date of employment.
X. Credited Service
Service is measured as the total number of years and completed months of a year as a general
employee with the Village. No service is credited for any periods of employment for which the
member received a refund of their contributions.
Y. Compensation
Base compensation including regular earnings, vacation pay, sick pay, plus all tax-deferred items of
income, but excluding any lump sum payments, overtime, bonuses and longevity bonus.
Z. Average Final Compensation (AFC)
The average of Compensation over the highest 5 years during the last 10 years of Credited Service;
does not include lump sum payments of unused leave.
E:i
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
AA. Normal Retirement
Eligibility - A member may retire on the first day of the month coincident with or next following the
earlier of:
(1) age 62, or
(2) 30 years of Credited Service regardless of age.
Benefit - 2.0% of AFC multiplied by Credited Service with a maximum benefit equal to 100% of
AFC.
Normal Form of Benefit - 10 Years Certain and Life thereafter; other options are also available.
COLA: None
BB. Early Retirement
Eligibility - A member may elect to retire earlier than the Normal Retirement Eligibility upon
attainment of age 50 and 6 years of Credited Service.
Benefit - The Normal Retirement Benefit is reduced by 5.0% for each year by which the Early
Retirement date precedes the Normal Retirement date.
Normal Form of Benefit - 10 Years Certain and Life thereafter; other options are also available.
COLA: None
CC. Delayed Retirement
Same as Normal Retirement taking into account compensation earned and service credited until the
date of actual retirement.
DD. Service Connected Disability
Eligibility - Any member who becomes totally and permanently disabled and unable to render useful
and efficient service to the Village as a result from an act occurring in the performance of service
for the Village is immediately eligible for a disability benefit.
Benefit -The accrued Normal Retirement Benefit taking into account compensation earned and
service credited as of the date of disability with a minimum benefit equal to 42% of AFC.
Normal Form of Benefit - 10 Years Certain and Life thereafter.
COLA: None
EX
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
EE. Non -Service Connected Disability
Eligibility - Any member who has 6 years of Credited Service and becomes totally and permanently
disabled and unable to render useful and efficient service to the Village is immediately eligible for a
disability benefit.
Benefit -The accrued Normal Retirement Benefit taking into account compensation earned and
service credited as of the date of disability with a minimum benefit equal to 25% of AFC.
Normal Form of Benefit - 10 Years Certain and Life thereafter.
COLA: None
FF. Death in the Line of Duty
Eligibility - Members are eligible for survivor benefits after the completion of 6 or more years of
Credited Service.
Benefit - The beneficiary will receive the member's accrued Normal Retirement Benefit taking into
account compensation earned and service credited as of the date of death. The benefit is payable at
the member's Normal Retirement date.
Normal Form of Benefit - 10 Years Certain
COLA: None
The beneficiary of a plan member with less than 6 years of Credited Service at the time of death will
receive a refund of the member's accumulated contributions with interest.
GG. Other Pre -Retirement Death
Eligibility - Members are eligible for survivor benefits after the completion of 6 or more years of
Credited Service.
Benefit - The beneficiary will receive the member's accrued Normal Retirement Benefit taking into
account compensation earned and service credited as of the date of death. The benefit is payable at
the member's Normal Retirement date.
Normal Form of Benefit - 10 Years Certain
COLA: None
The beneficiary of a plan member with less than 6 years of Credited Service at the time of death will
receive a refund of the member's accumulated contributions with interest.
HH. Post Retirement Death
Benefit determined by the form of benefit elected upon retirement.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
II. Optional Forms
In lieu of electing the Normal Form of benefit, the optional forms of benefits available to all retirees
are the Life Annuity option or the 50%, 66 2/3%, 75% and 100% Joint and Survivor options.
JJ. Vested Termination
Eligibility - A member has earned a non -forfeitable right to Plan benefits after the completion of 6
years of Credited Service.
Benefit - The benefit is the member's accrued Normal Retirement Benefit as of the date of
termination. Benefit begins on the member's Normal Retirement date. Alternatively, members can
elect a reduced Early Retirement benefit any time after age 50.
Normal Form of Benefit - 10 Years Certain and Life thereafter; other options are also available.
COLA: None
Members terminating employment with less than 6 years of Credited Service will receive a refund
of their own accumulated contributions with interest.
KK. Refunds
Eligibility - All members terminating employment with less than 6 years of Credited Service are
eligible. Optionally, vested members (those with 6 or more years of Credited Service) may elect a
refund in lieu of the vested benefits otherwise due.
Benefit - Refund of the member's contributions with interest. Interest is currently credited at a rate
of 3%.
LL. Member Contributions
5% of Compensation
MM. Employer Contributions
Any additional amount determined by the actuary needed to fund the plan properly according to
State laws.
NN. Cost of Living Increases
Not Applicable
00. 13th Check
Not Applicable
E:2!
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
PP. Deferred Retirement Option Plan
Not Applicable
QQ. Other Ancillary Benefits
There are no ancillary retirement type benefits not required by statutes but which might be deemed a
Village of Tequesta General Employees' Pension Trust Fund liability if continued beyond the
availability of funding by the current funding source.
RR. Changes from Previous Valuation
There have been no changes since the last valuation.
The General Employees' Pension Trust Fund does not issue separate stand-alone financial
statements. Included below are the Statement of Fiduciary Net Position and the Statement of
Changes in Fiduciary Net Position as of and for the fiscal year ended September 30, 2017.
GENERAL EMPLOYEES' PENSION TRUST FUND
STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2017
Assets
Cash and cash equivalents $ 156,871
Investments
Equities 3,238,493
Fixed income 1,147,264
Real Estate Funds 374,670
Total investments 4,760,427
Prepaid items 6,674
Contributions receivable 17,456
Accrued interest receivable 6,685
Total Assets 4,948,113
Liabilities
Accounts payable 12,965
Total Liabilities 12,965
Net Position Restricted for
Pension Benefits $ 4,935,148
E:9
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
GENERAL EMPLOYEES' PENSION TRUST FUND
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Additions
Contributions:
Employer $ 305,931
Employee 143,361
Total Contributions 449,292
Investment earnings
Net increase in fair value of investments
291,746
Gain on sale of investments
194,277
Interest earnings
109,073
Total investment earnings
595,096
Less investment expenses
(32,267)
Net investment earnings
562,829
Total Additions
1,012,121
Deductions
Benefits paid
41,859
Refunds of contributions
13,511
Administrative expenses
37,296
Total Deductions
92,666
Change in Net Position 919,455
Net Position Restricted for
Pension Benefits
Beginning 4,015,693
Ending $ 4,935,148
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
The following summarizes the pension related amounts for the pension plans as of the indicated
measurement date:
General Employees'
Pension Trust Fund
Firefighters Pension
Trust Fund
Police Pension Trust
Fund
FRS
HIS
Total
Measurement Net Pension Net Pension
Date Asset Liability
9/30/16 $ $ 26,477 $
9/30/16 1,770,594
Deferred
Deferred
Pension
Outflow of
Inflow of
Expense
Resources
Resources
9,845
$ 551,703 $
185,842 $
309,445
1,025,889
363,638
563,520
9/30/16 689,464 229,997
523,505
29,936
6/30/17 561,097 254,082
187,925
93,454
6/30/17 129,440 19,662
86,628
9,845
$ 689,464 $ 2,487,608 $ $ 2,081,333 $
1,347,538 $
1,006,200
Village of Tequesta Defined Contribution Plan
The Village Single -Employer Defined Contribution Plan (the Plan) was established on February 1,
2013 with and effective date of March 1, 2013. The Plan is a 401(a) money purchase plan in the
form of the Empower Retirement Governmental Money Purchase Plan and Trust (The Plan) with
assets of the Plan held in trust for the exclusive benefit of the Plan participants and their
beneficiaries. The assets shall be invested in the Plan and shall not be diverted to any other purpose.
The employer's beneficial ownership of Plan assets held in the Empower Retirement Trust shall be
held for the further exclusive benefit of the Plan participants. The Village Manager is the
coordinator for the Plan and is authorized to execute all necessary agreements with the Empower
Retirement Trust incidental to the administration of the Plan. The Village serves as Trustee under
the Plan.
In a defined contribution plan, benefits depend solely on amounts contributed to the Plan plus
investment earnings.
The Plan covers Police officers hired after February 1, 2013. Employees must designate a
mandatory participation contribution between the range of 1 to 12% for the Plan year as a condition
of participation in the Plan. The participant shall not have the right to discontinue or vary the rate
after becoming a Plan participant. Newly eligible employees have an election window of 30 days
from the date of eligibility to make the election to participate in the mandatory contribution portion
of the Plan which will begin the first of the month following the end of the election window. This
election is irrevocable and remains in force until the employee terminates employment or ceases to
be eligible to participate in the Plan.
The Village is required to match employee contributions up to a maximum contribution of 5%.
Employees are immediately vested in the Plan. Plan provisions are established and may be amended
by the Village.
The Village does not hold or administer resources of the Plan and consequently, the Plan does not
meet the requirements for inclusion in the Village's financial statements. The Plan does not issue a
stand-alone financial report. The fair value of the Plan assets at September 30, 2017 was $312,570.
Employee contributions to the Plan for fiscal year ended September 30, 2017 were $39,183; the
Village's contribution was $70,530.
[IMA
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
G. Other Postemployment Benefit (OPER) Obligations
Village of Tequesta's Other Postemployment Benefits Plan
Plan Description. The Village provides an optional single -employer defined benefit
post -employment healthcare plan to eligible individuals. The plan allows its employees and their
beneficiaries, at their own cost, to continue to obtain health, dental and other insurance benefits
upon retirement. The benefits of the plan conform to Florida Statutes, which are the legal authority
for the plan. The plan has no assets and does not issue a separate financial report.
Funding Policy. The Village does not directly make a contribution to a health plan on behalf of
retirees. However, retirees and their beneficiaries can purchase from the Village's healthcare
provider the same health plan, at the same group rates as are charged to the Village for active
employees. Under GASB Statement No. 45, the Village is required to calculate an offset to the cost
of these benefits as an employer contribution, based upon an implicit rate subsidy prepared by the
Village's actuary. This offset equals the total age-adjusted costs paid by the Village for its active
employees for coverage of the retirees and their dependents for the year net of the retiree's own
payments for the year. The annual other post -employment benefit cost is calculated based on the
annual required contribution (ARC) of the employer, an amount actuarially determined in
accordance with GASB Statement No. 45. The ARC represents a level of funding that, if paid on
an ongoing basis, is projected to cover the current cost of the benefit. Any unfunded actuarial
liabilities are amortized over a period not to exceed thirty years.
The annual OPEB cost for the Village for the current year and the related information for the fiscal
year ended September 30, 2017 is as follows:
Required Contribution Rates
Employer Pay-as-you-go
Plan members N/A
Actuarial Methods and Assumptions
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far in the future. Examples include
assumptions about future employment and termination, mortality, and healthcare cost trends.
Amounts determined regarding the funded status of the plan and the annual required contributions
of the employer are subject to continual revisions as such actual results are compared with past
expectations and new estimates are made about the future. Projections of benefits for financial
reporting purposes are based on the substantive plan provisions, as understood by the employer and
participating members, and include the types of benefits provided at the time of each valuation and
the historical pattern of sharing of benefit costs between the employer and participating members.
The actuarial methods and assumptions used include techniques that are designed to reduce the
effect of short term volatility in actuarial accrued liabilities and actuarial value of assets, consistent
with the long-term perspective of the calculations.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Annual OPEB Cost and Net OPEB Obligation
Annual OPEB Cost
Annual Required Contribution (ARC) $ 81,087
Interest on Net OPEB obligation 9,106
Adjustment to ARC (10,118)
Total Annual OPEB Cost $ 80,075
Net OPEB Obligation
Annual OPEB Cost $
80,075
Employer Contributions
(37,725)
Increase in Net OPEB Obligation
42,350
Net OPEB obligation (beginning of year)
303,541
Net OPEB Obligation (End of Year) $
345,891
The funded status of the Plan as of October 1, 2015, the most recent actuarial
valuation date is as
follows:
Cost Contributed
Schedule of Funding Progress
2015
Actuarial Unfunded
UAAL As %
Actuarial Accrued AAL Funded Covered
of Covered
Value of Liability (UAAL) (2) - Ratio Payroll
Payroll
Assets (AAL) (1) (1)/(2) (4)
(3)/(4)
303,541
$ - $ 599,693 $ 599,693 0% $ 5,695,712
10.50%
Schedule of Employer Contributions
Fiscal Year
Percentage of
Ended
Annual
Amount
Annual OPEB
Net OPEB
9/30
OPEB Cost
Contributed
Cost Contributed
Obligation
2015
$ 56,000
$ 14,000
25%
$ 259,000
2016
77,303
32,762
42%
303,541
2017
80,075
37,725
47%
345,891
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Fiscal year end
Valuation date
Mortality table
Actuarial cost method
General Price Inflation Rate
Discount Rate
Amortization method
Select health coast trends
Ultimate health cost trend
Payroll Growth Rate
H. Construction Commitments
Actuarial Assumptions
September 30, 2017
October 1, 2015
PR2000 Combined Healthy
Entry Age Normal
2.80%
3.00%
30 years
5.8% for f/y/e 2017, 5.80% for 2018 until 2024
4.25%
3.00%
The Village had no significant construction commitments as of September 30, 2017.
Inter -Local Agreement
On December 20, 1994, the Village entered into an Inter -local agreement with Palm Beach County.
Per the agreement, Palm Beach County provided for partial funding, land acquisition and design
and construction of a branch library within Tequesta. Upon completion of the project, the library
was leased to Palm Beach County for 50 years for an annual rent of one dollar. In the event the
Village terminates the lease before the end of 50 years, the Village must reimburse Palm Beach
County a depreciated value using a useful life of 25 years based on an initial value of $405,000
calculated on a straight-line basis.
L Contracted Services —Re fuse and Recycling Collection
The Village entered into a solid waste and recyclable collection agreement with Waste
Management Inc. of Florida on September 13, 2007 for a period of five years beginning October 1,
2007 and expiring September 30, 2013. With this agreement the Village granted Waste
Management the exclusive franchise for solid waste collection of residential, commercial, industrial
and roll -off refuse, recycling and vegetative waste. The Village, on August 5, 2010, entered into
the first amendment to the agreement separating the diesel fuel and collection components of the
rate allowing for separate calculation of an annual increase. The annual change in the collection
component is determined using the CPI (June to June) while the annual change in the fuel
component is determined using the change in the cost of diesel fuel determined by reference to
EIA/DOE website that reports average prices. Effective September 30, 2010 the Village entered
into a second amendment to the agreement extending the term of the current agreement and
additional five (5) years from October 1, 2013 and expiring September 30, 2017.
The Village entered into new agreement with Waste Management, Inc of Florida with the initial
term for a period of eight years beginning October 1, 2017 and optional renewal for one additional
five year period.
J. Risk Management
The Village is exposed to various risks of loss related to torts, theft of, damage to and destruction
of assets, errors and omissions, injuries to employees and natural disasters. While the Village
01
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
cannot anticipate the areas in which potential claims may arise, the Village purchases commercial
insurance to protect against areas of possible exposure germane to municipal entities such as
property, liability, automobile, workers' compensation, crime, storage tank, inland marine and
railroad coverage. Deductibles and limits vary by coverage and are secured based upon the
Village's tolerance of risk retention in each area.
At the Village Council's direction, the property deductible of $100,000 is applicable for all perils
excluding hurricane/windstorm damage. The Florida Municipal Insurance Trust (FMIT) applies a
named storm deductible of 5% of the 100% value of real and personal property, personal property
of others in our care, custody and control values at the time of loss or damage at the locations
where the damage occurred, subject to the policy deductible, whichever is greater. The Village
continues to self -insure all properties valued under $100,000. FMIT issued members in good
standing a return of premium credit. The Village received a total credit of $7,487 related to policy
year 2015/2016.
The Village remains fully insured with the FMIT for workers' compensation coverage with
statutory limits. Premiums are based upon risk class and remuneration of covered employees
adjusted by an experience modification factor which includes three prior years of claims history.
At the end of each fiscal year, the plan is audited and the Village can either receive a return of
premium or be required to pay additional premium base upon actual versus estimated payroll.
FMIT's final audit for fiscal year 2014/2015 resulted in the Village being refunded a total of $7,279
in fiscal year 2017. Additionally, $9,396 was refunded in fiscal year 2017 related to 2015/2016
policy.
There were no significant changes in insurance coverage from coverage in prior years. Settled
claims have not exceeded the commercial coverage in any of the past three fiscal years.
K Lease Obligations
Capital Lease - Fire Equipment
The Village entered into a Master Equipment Lease Purchase agreement with Community First
National Bank in the amount of $132,774 with funding on January 5, 2016 for the financing of fire
equipment. The applicable interest rate is 2.889% and interest and principal payments are due
annually on January 5th. This is a four (4) year lease with five (5) payments.
The following is the schedule of the of the future minimum lease payments under this capital lease
arrangement at September 30, 2017:
Fiscal Year Ending September 30:
Amount
2018
$ 28,089
2019
28,089
2020
28,089
Total minimum lease payments
84,267
Less amount representing interest
(4,646)
Present value of Future Minimum Lease Payments
$ 79,621
U
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Capital Lease- Fire Pumper
The Village entered into a capital lease with SunTrust in the amount of $432,844 with funding on
October 29, 2013 for the financing of a fire pumper. The applicable interest rate is 2.423% and
interest and principal payments are due annually on November 11th. This is a nine (9) year lease
with ten (10) payments.
The following is a schedule of the future minimum lease payments under this capital lease
arrangement at September 30, 2017:
Fiscal Year Ending September 30:
Amount
2018
$ 48,135
2019
48,135
2020
48,135
2021
48,135
2022
48,135
2023
48,132
Total minimum lease payments
288,807
Less amount representing interest
(22,998)
Present Value of Future Minimum Lease Payments $ 265,809
Capital Lease — Police Vehicles
The Village entered into a 36 -month capital lease with First Capital Leasing in the amount of
$240,658 with funding on May 15, 2015 for the financing of seven (7) Ford Police Interceptors
with up -fitting. The applicable interest rate is 3.007% (effective rate 3.049%) and interest and
principal payments are due on the first of each month. The lease was subsequently assigned to KS
StateBank.
The following is a schedule of the future minimum lease payments under the capital lease
arrangement at September 30, 2017:
Fiscal Year Ending September 30: Amount
2018 $ 55,934
Total minimum lease payments 55,934
Less amount representing interest (625)
Present Value of Future Minimum Lease Payments $ 55,309
ffj
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
L. Long -Term Liabilities
Promissory Notes
The Village issues long-term debt to provide funds for the acquisition and construction of major
capital facilities. Promissory notes have been signed for both governmental and business -type
activities. These notes mature in 5 to 11 years and have interest rates from 3.685% to 4.96% per
year. Notes outstanding at September 30, 2017 are as follows:
Outstanding
Signed Original Interest Final September 30,
Promissory Notes Payable Date Borrowing Rate Maturity 2017
Government Activities
Public Improvements/P.S. Building 9/13/2002 $ 5,000,000 4.28% 9/13/2022 $ 1,674,030
Business -type Activities
Water Plant Expansion 6/30/2004 $ 645,170 4.96% 4/1/2021 $ 153,895
Public Improvement (Refunding) 7/14/2008 6,554,935 3.69% 3/1/2028 4,090,666
Total Business -type Activities $ 4,244,561
Legal Debt Margin
The Village is subject to a bonded debt limitation of 10% of total assessed value. The final gross
taxable value at September 30, 2017 was $1,002,224,986. As of September 30, 2017 the Village
did not exceed the debt limit of $100,222,499.
Changes in Long -Term Liabilities
Changes in the Village's long-term liabilities for the fiscal year ended September 30, 2017 are as
follows:
Governmental Activities
Beginning Ending Due Within
Balance Additions Deletions Balance One Year
Governmental Activities
Note Payable - 2002 $ 1,968,023 $ $ 293,993 $ 1,674,030 $ 306,825
Capital leases 547,423 146,684 400,739 122,789
Compensated absences 517,571 116,159 99,123 534,607 40,800
Total Governmental Activities $ 3,033,017 $ 116,159 $ 539,800 $ 2,609,376 $ 470,414
* For governmental activities, the liability for compensated absences is liquidated by the general fund.
0
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Business -tune Activities
The debt service requirements for the Village's notes are as follows:
Governmental Activities
Fiscal Year Ending
September 30:
2018
2019
2020
2021
2022
Total
Business -type Activities
Promissory Notes
Principal
Beginning
Balance
Additions Deletions
Ending
Balance
Due Within
One Year
Business -type Activities
320,218
52,283
372,501
334,196
Note Payable (2004)
$ 188,895
$ $ 35,000 $
153,895
$ 37,000
Note Payable (2008)
4,403,525
312,859
4,090,666
324,778
Compensated absences
163,108
17,234 24,909
155,433
15,000
Total Business -type Activities
$ 4,755,528
$ 17,234 $ 372,768 $
4,399,994
$ 376,778
The debt service requirements for the Village's notes are as follows:
Governmental Activities
Fiscal Year Ending
September 30:
2018
2019
2020
2021
2022
Total
Business -type Activities
Promissory Notes
Principal
Interest
Total
$ 306,825 $
65,676 $
372,501
320,218
52,283
372,501
334,196
38,306
372,502
348,783
23,718
372,501
364,008
8,494
372,502
$ 1,674,030 $
188,477 $
1,862,507
Promissory Notes
Fiscal Year Ending
Business -type Activities
September 30:
Principal
Interest
Total
2018
$ 361,778
$ 153,956 $
515,734
2019
375,203
152,121
527,324
2020
388,466
125,366
513,832
2021
397,999
109,757
507,756
2022
376,729
94,117
470,846
2023-2027
2,112,095
16,563
2,128,658
2028
232,291
1,819
234,110
Total
$ 4,244,561
$ 653,699 $
4,898,260
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Total Primary Government Debt
Fiscal Year Ending
September 30:
2018
2019
2020
2021
2022
2022-2026
2027-2028
Total
M. Fund Balance
Total Primary Government Debt
Principal
Interest
Total
$ 668,603 $
219,632 $
888,235
695,421
204,404
899,825
722,662
163,672
886,334
746,782
133,475
880,257
740,736
102,611
843,347
2,112,095
16,563
2,128,658
232,291
1,819
234,110
$ 5,918,590 $ 842,176 $ 6,760,766
Minimum Fund Balance Policy
The Village Council has adopted a financial policy to maintain a minimum level of unassigned fund
balance in the general fund. The target level is set at two months of general fund annual revenues
(approximately 16.7%). This amount is intended to provide fiscal stability when economic
downturns and other unexpected events occur. If fund balance falls below the minimum target level
because it has been used, essentially as a "revenue" source, as dictated by current circumstances,
the policy provides for actions to replenish the amount to the minimum target level. Generally,
replenishment is to occur within a three-year period.
At September 30, 2017 the unassigned fund balance was below the minimum target level
(approximately 12.6%).
X Interfund Transfers
The composition of interfund transfers for the fiscal year ended September 30, 2017 is as follows:
Interfund Transfers
Transfers In
Capital
Improvement
Transfers Out Fund Total
General Fund (1) $ 106,000 $ 106,000
Total Interfund Transfers $ 106,000 $ 106,000
(1) Transfer is to fund road improvements.
Ul
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
O. Joint Ventures
The Village, in conjunction with six other municipalities, organized a consortium to provide mutual
fire and emergency aid. The consortium is known as the Northern Area Mutual Aid Consortium
(NAMAC). During 1999, the consortium purchased equipment and supplies as well as collected
contributions. The consortium does not issue separate financial statements. The Village has not
been obligated to contribute any funds to the consortium since its inception in 1999.
Wi
REQUIRED SUPPLEMENTARY INFORMATION
VILLAGE OF TEQUESTA, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
See note to budgetary comparison schedule.
M
Variance
with Final
Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Revenues
Ad valorem taxes
$ 6,104,400 $
6,104,400 $
6,098,723
$ (5,677)
Other taxes
1,180,100
1,180,100
1,512,354
332,254
Charges for services
1,136,150
1,219,654
1,272,994
53,340
Intergovernmental
874,100
874,100
836,780
(37,320)
Intragovernmental
561,350
561,350
561,350
-
Licenses and permits
502,000
502,000
646,126
144,126
Franchise fees
462,000
462,000
452,496
(9,504)
Rents and royalties
203,000
203,000
203,965
965
Miscellaneous
17,050
17,050
40,660
23,610
Fines and forfeitures
65,000
65,000
32,743
(32,257)
Grants, contributions and donations
4,750
82,250
27,682
(54,568)
Investment earnings
5,000
5,000
15,605
10,605
Total Revenues
11,114,900
11,275,904
11,701,478
425,574
Expenditures
Current:
General government
1,988,650
2,143,307
2,104,039
39,268
Public safety
6,504,350
6,648,252
6,630,534
17,718
Transportation
1,192,700
1,247,679
1,306,439
(58,760)
Leisure services
613,900
640,174
629,764
10,410
Capital outlay
415,250
557,955
346,224
211,731
Debt service:
Principal
443,300
443,300
440,676
2,624
Interest
91,600
91,600
92,164
(564)
Fiscal Charges
19,800
19,800
19,340
460
Total Expenditures
11,269,550
11,792,067
11,569,180
222,887
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(154,650)
(516,163)
132,298
648,461
Other Financing Sources (Uses)
Transfers out
(106,000)
(106,000)
(106,000)
-
Proceeds on sale of capital assets
10,000
10,000
9,336
(664)
Total Other Financing Sources (Uses)
(96,000)
(96,000)
(96,664)
(664)
Net Change in Fund Balances
(250,650)
(612,163)
35,634
647,797
Fund Balances - Beginning
3,987,146
3,987,146
4,310,262
323,116
Fund Balances - Ending
$ 3,736,496 $
3,374,983 $
4,345,896
$ 970,913
See note to budgetary comparison schedule.
M
VILLAGE OF TEQUESTA, FLORIDA
NOTE TO THE BUDGETARY COMPARISON SCHEDULE
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Note 1 — Budgets and Budgetary Accounting
The Village is required to present a budget to actual comparison for the general fund and
any major special revenue fund with a legally adopted annual budget. The Village may not
include nonmajor special revenue funds, or funds of other fund types. This fiscal year, the
Village presents this schedule for the general fund only.
Budgets are adopted on a basis consistent with accounting principles generally accepted in
the United States of America. For budgeting purposes, current year encumbrances are not
treated as expenditures.
All budgets are legally enacted through passage of a resolution. Although the Village
Council requires all inter -department budget amendments to go before the Village Council
for approval, the budget was adopted on a fund basis and the legal level of budgetary
control is at that level. What this means is that any amendment that changes the fund's total
budget requires the Village Council to approve it in the same manner that the original
budget was approved — by resolution.
The original budget is the budget in place at the start of the fiscal year, which includes all of
the following
The budget passed by the Village Council
+Subsequent amendments made prior to the start of the fiscal year
+Carryovers from the previous year
=Original budget
The anal budget includes all adjustments to the budget applicable to the fiscal year, even if
they take place after the close of the fiscal year.
During the year, total supplemental appropriations of $522,517 were adopted for the
General Fund. Appropriations are legally controlled at the fund level and expenditures may
not legally exceed budgeted appropriations at that level.
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND
RELATED RATIOS
FIREFIGHTERS' PENSION TRUST FUND
Fiscal Year Ended September 30,
Total Pension Lability
Service cost
Interest
Changes of benefit terms
Difference between expected and actual experience
Changes of assumptions
Benefit payments, including refunds of
member contributions
Refunds
Other
Net Change in Total Pension Liability
Total Pension Liability - Beginning
Total Pension Liability - Ending (a)
Plan Fiduciary Net Position
Contributions - employer
Contributions - employer (from State)*
Contributions - member
Net Investment income
Benefit payments
Refunds
Administrative expense
Other (Use of State Contribution Reserve)
Net Change in Plan Fiduciary Net Position
Plan Fiduciary Net Position - Beginning
Plan Fiduciary Net Position - Ending (b)
Net Pension Liability - Ending (a) - (b)
Plan Fiduciary Net Position as a Percentage of
Total Pension Liability
Covered Employee Payroll*
Net Pension Liability as a Percentage of
Employee Payroll
2017 2016 2015 2014
$ 366,393 $
348,504 $
334,559 $ 312,030
788,885
778,642
679,400 582,897
-
-
318,787 -
(22,327)
(401,835)
108,010 450
(136,724)
300,255
-
(163,805)
(438,149)
(61,913)
(53,637)
(1,852)
-
-
-
(151,438)
(242,266)
118,555
30,162
679,132
345,151
1,497,398
871,902
10,597,615
10,252,464
8,755,066
7,883,164
$ 11,276,747 $
10,597,615 $
10,252,464 $
8,755,066
$ 209,615 $
60,162 $
335,771 $
351,652
300,401
394,709
189,010
100,617
79,564
68,982
64,721
65,803
974,383
609,318
77,213
567,786
(163,805)
(438,149)
(61,913)
(53,637)
(1,852)
-
-
-
(18,789)
(27,450)
(27,290)
(18,921)
(151,438)
(242,266)
-
-
1,228,079
425,306
577,512
1,013,300
8,827,021
8,401,715
7,824,203
6,810,903
$ 10,055,100 $ 8,827,021 $ 8,401,715 $ 7,824,203
$ 1,221,647 $ 1,770,594 $ 1,850,749 $ 930,863
89.17% 83.29% 81.95% 89.37%
$ 1,446,616 $ 1,379,650 $ 1,294,416 $ 1,316,060
84.45% 128.34% 142.98% 70.73%
*$242,266 in State Contribution Reserve was used to offset the Village's contribution requirement for fiscal year ending 2016 as
per the collective bargaining agreement.
This schedule is presented as required, however, until a full 10 -year trend is compiled, the Village is only presenting information
for those years for which information is available.
NVE
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF VILLAGE CONTRIBUTIONS
FIREFIGHTERS' PENSION TRUST FUND
Fiscal Year Actuarially Contribution Covered Actual
Ended Determined Actual Deficiency Employee Contribution as a %
September 30, Contribution Contribution (Excess) Payroll of Covered Payroll
2014 $ 416,665 $
422,107 $
(5,442) $ 1,316,060
32.07%
2015 403,211
406,226
(3,015) 1,294,416
31.38%
2016 454,871
454,871
- 1,379,650
32.97%
2017 498,504
510,016
(11,512) 1,446,616
35.26%
Notes to Schedule
Valuation Date
10/1/2015
Actuarially determined contribution rates are calculated as of October 1, which is two years prior
to the end of the fiscal year in which contributions are reported.
Methods and assumptions used to determined contribution rates:
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Inflation
Salary increases
Investment rate of return
Entry age normal
Level dollar, closed
20 years
5 -year smoothed market
3.00%
6.0% including inflation
7.25%
Retirement age 100% upon reaching normal retirement age.
Probability of early retirement is 5% or each year
eligible.
Mortality RP -2000 Combined Healthy Participant Mortality
Table for males and females with mortality
improvement projected to all future years using
Scale AA
Other information See discussion of valuation results in the October 1, 2015
Actuarial Valuation report, dated August 1, 2016
This schedule is presented as required, however, until a full 10 -year trend is compiled, information is
presented for those years available.
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF INVESTMENT RETURNS
FIREFIGHTERS' PENSION TRUST FUND
Fiscal Year Ended September 30, 2017 2016 2015
Annual money -weighted rate of return, net of investment
expenses 10.58% 7.69% 0.38%
This schedule is presented as required, however, until a full 10 -year trend is compiled, the Village is
only presenting information for those years for which information is available.
2014
7.46%
101
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY AND
RELATED RATIOS
POLICE OFFICERS' PENSION TRUST FUND
Fiscal Year Ended September 30,
Total Pension Lability
Service cost
Interest
Changes of benefit terms
Difference between expected and actual experience
Changes of assumptions
Benefit payments
Refunds
Net Change in Total Pension Liability
Total Pension Liability - Beginning
Total Pension Liability - Ending (a)
Plan Fiduciary Net Position
Contributions - employer
Contributions - non -employer contributing entity
Contributions - member
Net Investment income
Benefit payments
Refunds
Administrative expense
Net Change in Plan Fiduciary Net Position
Plan Fiduciary Net Position - Beginning
Plan Fiduciary Net Position - Ending (b)
Net Pension Asset - Ending (a) - (b)
Plan Fiduciary Net Position as a Percentage of Total
Pension Liability (Asset)
Covered Employee Payroll
Net Pension Liability (Asset) as a Percentage of
Covered -Employee Payroll
2017 2016 2015 2014
$ $ 80,711 $
110,495 $
126,703 $
161,156
200,356
201,452
213,603
169,526
16,998
-
(39,467)
-
(329,387)
(226,384)
(391,613)
-
(30,633)
75,463
-
-
(27,708)
(27,708)
(30,312)
(10,073)
-
(52,038)
-
(43,331)
(106,661)
81,280
(121,086)
277,278
2,696,683
2,615,403
2,736,489
2,459,211
$ 2,590,022 $
2,696,683 $
2,615,403 $
2,736,489
$ $ 40,829 $
38,638 $
80,782 $
111,164
-
-
-
25,888
16,998
17,067
20,545
357,477
306,504
20,718
219,219
(27,708)
(27,708)
(30,312)
(10,073)
-
(52,038)
-
(43,331)
(18,788)
(27,026)
(27,967)
(18,677)
368,808
255,437
63,766
284,190
3,386,147
3,130,710
3,066,944
2,782,754
3,754,955
3,386,147
3,130,710
3,066,944
$ (1,164,933)$
(689,464)$
(515,307)$
(330,455)
144.98% 125.57% 119.70% 112.08%
$ 339,957 $ 341,342 $ 410,897 $ 517,760
-342.67% -201.99% -125.41% -63.82%
This schedule is presented as required, however, until a full 10 -year trend is compiled, the Village is
only presenting information for those years for which information is available.
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF VILLAGE CONTRIBUTIONS
POLICE OFFICERS' PENSION TRUST FUND
Fiscal Year
Actuarially
Contribution
Covered
Actual
Ended
Determined
Actual Deficiency
Employee
Contribution as a %
September 30,
Contribution
Contribution (Excess)
Payroll
of Covered Payroll
2014 $ 111,164 $
111,164 $
- $ 517,760
21.47%
2015 80,782
80,782
- 410,897
19.66%
2016 37,377
38,638
(1,261) 341,342
11.32%
2017 40,659
40,829
(170) 339,957
12.01°%
Notes to Schedule
Valuation Date
10/1/2015
Actuarially determined contribution rates are calculated as of October 1, which is two years
prior to the end of the fiscal year in which contributions are reported.
Methods and assumptions used to determined contribution rates:
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Inflation
Salary increases
Investment rate of return
Retirement age
Entry age normal
Level dollar, closed
20 years
5 -year smoothed market
3.00%
6.0% including inflation
7.25%
100% upon reaching normal retirement age. Probability of
early retirement is 5% or each year eligible.
Mortality RP -2000 Combined Healthy Participant Mortality Table for
males and females with mortality improvement projected to
all future years using Scale AA
Other Information: See discussion of valuation results in the October 1, 2015
Actuarial Valuation report, dated August 1, 2016
This schedule is presented as required, however, until a full 10 -year trend is compiled, information
is presented for those years available.
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF INVESTMENT RETURNS
POLICE OFFICERS' PENSION TRUST FUND
Fiscal Year Ended September 30, 2017 2016 2015 2014
Annual money -weighted rate of return, net of investment
expenses 10.58% 7.69% 0.38% 7.46%
This schedule is presented as required, however, until a full 10 -year trend is compiled, the Village is
only presenting information for those years for which information is available.
[[IZ!
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY AND
RELATED RATIOS
GENERAL EMPLOYEE'S PENSION TRUST FUND
Fiscal Year Ended September 30,
Total Pension Lability
Service cost
Interest
Benefit changes
Difference between actual & expected experience
Assumption changes
Benefit payments
Refunds
Net Change in Total Pension Liability
Total Pension Liability - Beginning
Total Pension Liability - Ending (a)
Plan Fiduciary Net Position
Contributions - employer and state
Contributions - non -employer contributing entity
Contributions - member
Net investment income
Benefit payments
Refunds
Administrative expense
Net Change in Plan Fiduciary Net Position
Plan Fiduciary Net Position - Beginning
Plan Fiduciary Net Position - Ending (b)
Net Pension Asset - Ending (a) - (b)
Plan Fiduciary Net Position as a Percentage
of Total Pension Liability
Covered Employee Payroll
Net Pension Liability as a Percentage
of covered Employee Payroll
2017 2016 2015 2014
$ $ 380,051 $
359,231 $
300,325 $
278,029
329,590
285,954
253,701
216,124
(112,103)
(40,094)
(157,539)
-
362,784
-
-
-
(41,859)
(16,657)
(11,918)
(8,534)
(13,511)
(16,161)
(5,959)
(4,454)
904,952
572,273
378,610
481,165
4,042,171
3,469,898
3,091,288
2,610,123
$ 4,947,123 $
4,042,171 $
3,469,898 $
3,091,288
$ $ 305,931 $ 201,704 $ 194,376 $ 184,627
143,361
134,829
115,288
100,560
562,828
191,848
(36,136)
308,314
(41,859)
(16,657)
(11,918)
(8,534)
(13,511)
(16,161)
(5,959)
(4,454)
(37,296)
(44,359)
(38,098)
(25,678)
919,454
451,204
217,553
554,835
4,015,694
3,564,490
3,346,937
2,792,102
$ 4,935,148 $
4,015,694 $
3,564,490 $
3,346,937
$ 11,975 $ 26,477 $ (94,592) $ (255,649)
99.76% 99.34% 102.73% 108.27%
$ 2,867,220 $ 2,696,572 $ 2,305,760 $ 2,011,191
0.42% 0.98% -4.10% -12.71%
This schedule is presented as required, however, until a full 10 -year trend is compiled, the Village is
only presenting information for those years for which information is available.
105
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF VILLAGE CONTRIBUTIONS
GENERAL EMPLOYEES' PENSION TRUST FUND
Fiscal Year
Actuarially
Contribution
Covered
Actual
Ended
Determined
Actual Deficiency
Employee
Contribution as a %
September 30,
Contribution
Contribution (Excess)
Payroll
od Covered Payroll
2014 $ 184,627 $
184,627 $
- $ 2,011,191
9.18%
2015 194,376
194,376
- 2,305,760
8.43%
2016 201,704
201,704
- 2,696,572
7.48%
2017 235,972
305,931
(69,959) 2,867,220
10.67%
Notes to Schedule
Valuation Date
10/1/2015
Actuarially determined contribution rates are calculated as of October 1, which is two years prior
to the end of the fiscal year in which contributions are reported.
Methods and assumptions used to determined contribution rates:
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Inflation
Salary increases
Investment rate of return
Rate of retirement
Mortality
Other information
Aggregate method
N/A
N/A
5 -year smoothed market
3.00%
6.0% including inflation
7.50%
100% when first eligible for normal retirement; 5% for each
year eligible for early retirement.
RP -2000 Combined Healthy Participant Mortality Table for
males and females with mortality improvement projected to
all future years using Scale AA
See discussion of valuation results from the October 1, 2015
Actuarial Valuation report.
This schedule is presented as required, however, until a full 10 -year trend is compiled, the Village
is only presenting information for those years for which information is available.
110
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF INVESTMENT RETURNS
GENERAL EMPLOYEES' PENSION TRUST FUND
Fiscal Year Ended September 30,
2017
2016
2015
Annual money -weighted rate of return, net of investment expenses
12.52%
3.97%
-2.11%
This schedule is presented as required, however, until a full 10 -year trend is compiled, information is
presented for those years available, the Village is only representing information for those years for
wich information is available.
101A
2014
9.73%
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS
OTHER POST -EMPLOYMENT BENEFITS
Note: See Note 3.G Other Post -Employment Benefit (OPER) Obligations
[[1Y:3
Unfunded
Actuarial
(a)
Accrued
Actuarial
Actuarial
Unfunded
Liability as a %
Actuarial
Value of
Accrued
Actuarial
Funded
Covered
Covered
Valuation Date
Assets
Liability (AAL)
Liability
Ratio
Payroll
Payroll
October 1, 2009
$ -
$ 484,000
$ 484,000
0%
$ 4,111,000
11.8%
October 1, 2014
-
380,000
380,000
0%
5,218,000
7.3%
October 1, 2015
-
599,693
599,693
0%
5,695,712
10.5%
Note: See Note 3.G Other Post -Employment Benefit (OPER) Obligations
[[1Y:3
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
FLORIDA RETIREMENT SYSTEM (FRS)
SCHEDULE OF PROPORTIONATE CHANGES IN THE NET PENSION LIABILITY
2017 2016 2015 2014 2013
Proportion of the net pension liability (asset) 0.00189% 0.00227% 0.00223% 0.00291% 0.00397%
Proportionate share of the net pension liability (asset) $ 561,097 $ 572,594 $ 287,876 $ 177,517 $ 683,841
Covered -employee payroll
Proportionate share of the net pension liability (asset)
as a percentage of its covered -employee payroll
Plan fiduciary net position as a percentage of the
total pension liability
391,643 451,085 484,772 569,299 651,093
143.27% 126.94% 59.38% 31.18% 105.03%
83.89% 84.88% 92.00% 96.09% 88.54%
* The amounts presented for each fiscal year were determined as of 6/30.
(1) This schedule is presented as required, however, until a full 10 -year trend is compiled,
information is presented for only those years for which information is available.
(2) Refer to GASB No. 68, § 8 l - the information in this schedule determined as of the Village's most
recent fiscal year.
1111t
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
HEALTH INSURANCE SUBSIDY PROGRAM (HIS)
SCHEDULE OF PROPORTIONATE CHANGES IN THE NET PENSION LIABILITY
* The amounts presented for each fiscal year were determined as of 6/30.
(1) This schedule is presented as required, however, until a full 10 -year trend is compiled,
information is presented for only those years for which information is available.
(2) Refer to GASB No. 68, § 8 l - the information in this schedule determined as of the Village's most
recent fiscal year.
110
2017
2016
2015
2014
2013
Proportion of the net pension liability (asset)
0.00121%
0.00160%
0.00168%
0.00214%
0.00247%
Proportionate share of the net pension liability (asset) $
129,440
$ 186,087 $
171,031 $
200,044$
214,766
Covered -employee payroll
391,643
451,085
484,772
569,299
651,093
Proportionate share of the net pension liability (asset)
as a percentage of its covered -employee payroll
33.05%
41.25%
35.28%
35.14%
32.99%
Plan fiduciary net position as a percentage of the
total pension liability
1.64%
0.97%
0.50%
0.99%
178.00%
* The amounts presented for each fiscal year were determined as of 6/30.
(1) This schedule is presented as required, however, until a full 10 -year trend is compiled,
information is presented for only those years for which information is available.
(2) Refer to GASB No. 68, § 8 l - the information in this schedule determined as of the Village's most
recent fiscal year.
110
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
FLORIDA RETIREMENT SYSTEM (FRS)
SCHEDULE OF VILLAGE CONTRIBUTIONS
2017 2016 2015 2014 2013
Contractually required contribution $ 47,988$ 62,966$ 43,642$ 58,404$ 72,698
Contributions in relation to the contractually
required contribution (47,988) (62,966) (43,642) (58,404) (72,698)
Contribution deficiency (excess)
Covered -employee payroll
Contributions as a percentage of covered -
employee payroll
$ 382,869 $ 451,085 $ 484,772 $ 569,299 $ 651,093
12.53% 13.96% 9.00% 10.26% 11.17%
(1) This schedule is presented as required, however, until a full 10 -year trend is
compiled, information is presented for only those years for which information is available.
(2) Refer to GASB No. 68, 81b - the information in this schedule determined as of the
Village's most recent fiscal year.
111
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
HEALTH INSURANCE SUBSIDY PROGRAM (HIS)
SCHEDULE OF VILLAGE CONTRIBUTIONS
2017 2016 2015 2014 2013
Contractually required contribution $ 6,356$ 7,488 $ 5,381 $ 6,832$ 8,204
Contributions in relation to the contractually
required contribution (6,356) (7,488) (5,381) (6,832) (8,204)
Contribution deficiency (excess) $ - $ - $ - $ - $ -
Covered -employee payroll $ 382,869 $ 451,085 $ 484,772 $ 569,299 $ 651,093
Contributions as a percentage of covered -
employee payroll 1.66% 1.66% 1.11% 1.20% 1.26%
(1) This schedule is presented as required, however, until a full 10 -year trend is
compiled, information is presented for only those years for which information is available.
(2) Refer to GASB No. 68, 81b - the information in this schedule determined as of the
Village's most recent fiscal year.
112
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
NONMAJOR GOVERNMENTAL FUNDS
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Special revenue funds are used to account for specific revenue sources that are restricted,
committed, or assigned to expenditures for particular purposes.
Special Law Enforcement Trust Fund — This fund accounts for forfeitures received by the
Police Department. Forfeitures obtained locally are expended as prescribed by Florida Statute
Chapter 932.704. Forfeitures obtained through federal programs are expended according to the
Department of Justice Asset Forfeiture Program.
Capital Projects Funds
Capital Projects Fund are used to account for and report financial resources that are restricted,
committed or assigned to expenditures for capital outlays including the acquisition or
construction of capital facilities and other capital assets. The use of the capital projects fund type
is permitted rather than mandated for financial reporting purposes. Capital projects funds can be
a valuable management tool for multi-year projects.
Capital Improvement Fund — This fund is used to account for the maintenance and upkeep of
the Village's general infrastructure (such as roads, bridges, sidewalks and storm water drainage
systems) and streetscape beautification projects.
Capital Projects Fund — This fund accounts for the acquisition or construction of major capital
projects, other than those financed by proprietary fund types.
VILLAGE OF TEQUESTA, FLORIDA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2017
Special
Revenue
Capital Projects
Cash
$ 335,858 $
103,836 $
Total
Special Law
Capital Capital
Nonmajor
Enforcement
Improvement Projects
Governmental
Fund
Fund Fund
Funds
Assets
Cash
$ 335,858 $
103,836 $
4,313 $
444,007
Total Assets
$ 335,858 $
103,836 $
4,313 $
444,007
Liabilities and Fund Balances
Liabilities
Accounts payable
-
48,000
-
48,000
Total Liabilities
-
48,000
-
48,000
Fund Balances
Restricted for:
Law Enforcement
335,858
-
-
335,858
Assigned to:
Capital Projects
-
55,836
4,313
60,149
Total Fund Balances
335,858
55,836
4,313
396,007
Total Liabilities and Fund Balances
$ 335,858 $
103,836 $
4,313 $
444,007
113
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Special Revenue
Capital Projects
- $
- $ -
Expenditures
Total
Special Law
Capital Capital
Nonmajor
Enforcement
Improvement Projects
Governmental
Fund
Fund Fund
Funds
Revenues
$ - $
- $
- $ -
Expenditures
Current:
Public safety
2,173
-
- 2,173
Transportation
-
156,083
- 156,083
Capital outlay
10,000
-
- 10,000
Total Expenditures
12,173
156,083
- 168,256
Excess (Deficiency) of Revenues
Over Expenditures
(12,173)
(156,083)
- (168,256)
Other Financing Sources (Uses)
Transfers in
-
106,000
- 106,000
Net Change in Fund Balances
(12,173)
(50,083)
- (62,256)
Fund Balances - Beginning of Year
348,031
105,919
4,313 458,263
Fund Balances - End of Year
$ 335,858 $
55,836 $
4,313 $ 396,007
114
VILLAGE OF TEQUESTA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
SPECIAL LAW ENFORCEMENT TRUST FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Budgeted Amounts
Original Final
Variance
with Final
Budget
Actual Positive
Amounts (Negative)
Revenues $ - $ - $ - $
Expenditures
Public safety
$ $ 2,326 $
2,173 $
153
Capital outlay
181,400
10,000
171,400
Total Expenditures
183,726
12,173
171,553
Net Change in Fund Balance
(183,726)
(12,173)
171,553
Fund Balance - Beginning
348,031 348,031
348,031
-
Fund Balance - Ending
$ 348,031 $ 164,305 $
335,858 $
171,553
115
VILLAGE OF TEQUESTA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
CAPITAL IMPROVEMENT FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Revenues
Expenditures
Transportation
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources
Transfers in
Net Change in Fund Balance
Fund Balance - Beginning
Fund Balance - Ending
Budgeted Amounts
Original Final
Variance
with Final
Budget
Actual Positive
Amounts (Negative)
$ 106,000 $ 156,147 $ 156,083 $ 64
106,000 156,147 156,083 64
(106,000) (156,147) (156,083) 64
106,000 106,000 106,000 -
- (50,147) (50,083) 64
105,919 105,919 105,919 -
$ 105,919 $ 55,772 $ 55,836 $ 64
116
VILLAGE OF TEQUESTA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
CAPITAL PROJECTS FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
117
Variance
with Final
Budget
Budgeted Amounts
Actual
Positive
Original Final
Amounts
(Negative)
Revenues
Fines and forfeitures
$ $ $
$
Total Revenues
Expenditures
Public safety
Total Expenditures
Net Change in Fund Balance
Fund Balance - Beginning
4,314 4,314
4,313
(1)
Fund Balance - Ending
$ 4,314 $ 4,314 $
4,313
$ (1)
117
FIDUCIARY FUNDS
FIDUCIARY FUNDS
Fiduciary funds are used to report assets held in a trustee or agency capacity for others and
therefore cannot be used to support the government's own programs. Pension trust funds are
fiduciary funds that are used to report resources required to be held in trust for the members and
beneficiaries of defined benefit pension plans, defined contribution plans, other post -employment
benefit plans, or other employee benefit plans. The Village accounts for two defined benefit
plans (Public Safety reports separate trust funds for Police Officers and Firefighters) and a
separate fund is reported for each individual trust fund. The three trust funds are as follows:
Firefighters' Pension Trust Fund — This fund accounts for the accumulation of resources and
for contributions and benefits of the firefighter employees.
Police Officers' Pension Trust Fund — This fund accounts for the accumulation of resources
and for contributions and benefits of the police employees hired prior to February 1, 2013.
General Employees' Pension Trust Fund — This fund accounts for the accumulation of
resources and for contributions and benefits for the general employees of the Village.
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2017
Net Position Restricted for
Pension Benefits $ 10,055,100 $ 3,754,955 $ 4,935,148 $ 18,745,203
118
Police
General
Firefighters'
Officers'
Employees'
Pension
Pension
Pension
Trust Fund
Trust Fund
Trust Fund
Total
Assets
Cash and cash equivalents
$ 186,715 $
73,537 $
156,871 $
417,123
Investments
Equities
6,587,464
2,461,803
3,238,493
12,287,760
Fixed Income
2,354,909
880,126
1,147,264
4,382,299
Real Estate Fund
904,606
338,013
374,670
1,617,289
Total investments
9,846,979
3,679,942
4,760,427
18,287,348
Prepaid items
15,442
4,100
6,674
26,216
Contributions receivable
11,114
4,224
17,456
32,794
Accrued interest
6,983
2,609
6,685
16,277
Total Assets
10,067,233
3,764,412
4,948,113
18,779,758
Liabilities
Accounts payable
12,133
9,457
12,965
34,555
Total Liabilities
12,133
9,457
12,965
34,555
Net Position Restricted for
Pension Benefits $ 10,055,100 $ 3,754,955 $ 4,935,148 $ 18,745,203
118
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Additions
Contributions:
Employer (including State)
Employee
Total Contributions
Investment Earnings
Net increase (decrease) in fair
value of investments
Gain on sale of investments
Interest earnings
Total investment earnings
Less investment expenses
Net Investment earnings
Miscellaneous
Total Additions
Deductions
Benefits paid
Refund of contributions
Administrative expenses
Total Deductions
Change in Net Position
Net Position Restricted for
Pension Benefits
Beginning
Ending
Police
General
Firefighters' Officers'
Employees'
Pension Pension
Pension
Trust Fund Trust Fund
Trust Fund Total
$ 358,577 $
40,829 $
305,931 $
705,337
79,564
16,998
143,361
239,923
438,141
57,827
449,292
945,260
(25,589)
(11,767)
291,746
254,390
657,131
250,801
194,277
1,102,209
377,947
144,068
109,073
631,088
1,009,489
383,102
595,096
1,987,687
(35,237)
(25,756)
(32,267)
(93,260)
974,252
357,346
562,829
1,894,427
131
131
-
262
1,412,524
415,304
1,012,121
2,839,949
163,805
27,708 41,859
233,372
1,851
- 13,511
15,362
18,789
18,788 37,296
74,873
1,596,969 461,800 1,104,787 3,163,556
1,228,079 368,808 919,455 2,516,342
8,827,021 3,386,147 4,015,693 16,228,861
$ 10,055,100 $ 3,754,955 $ 4,935,148 $ 18,745,203
119
STATISTICAL SECTION
No Text
STATISTICAL SECTION
This part of the Village of Tequesta's Comprehensive Annual Financial Report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information says about the Village's overall financial
health.
Contents
Page
Financial Trends
These schedules contain trend information to help the reader understand how the
Village's financial performance and well-being have changed over time. 120-124
Revenue Capacity
These schedules contain information to help the reader assess the Village's most
significant local revenue source, the property tax. 125-128
Debt Capacity
These schedules present information to help the reader assess the affordability of the
Village's current levels of outstanding debt and the Town's ability to issue additional
debt in the future. 129-133
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the Village's financial activities take
place. 134-135
Operating Information
These schedules contain service and infrastructure data to help the reader understand
how the information in the Village's financial report relates to the services the
Village provides and the activities it performs. 136-138
Sources: Unless other wise noted, the information in these schedules is derived from the
Comprehensive Annual Financial Reports for the relevant year.
VILLAGE OF TEQUESTA, FLORIDA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Note: The Village implemented GASB Statement No.63 during the fiscal year ended September 30, 2013 and utilized the new tenninclogy for allyear, presented.
120
2008
2009
2010
2011
2012
2013
2014
2015
.2016
2017
Governmental Activities
Net investinent in capital assets
$
6,959,332
$ 7,330,897
$ 7,525,570
$ 10,730,256
$ 10,591,778
$ 10,261,476
$ 10,284,849
$ 10,058,956
$ 9,948,379
$ 10,023,291
Restricted
-
-
-
-
579,809
579,320
940,739
1,572,614
1,343,543
1,776,769
Unrestricted
6,459,522
6,218,462
5,306,661
4,442,410
3,510,237
3,011,737
2,739,726
1,638,243
1,612,070
1,157,654
Total Governmental Activities Net Position
$
13,418,854
$ 13,549,359
$ 12,832,231
$ 15,172,666
$ 14,681,824
$ 13,852,533
$ 13,965,314
$ 13,269,813
$ 12,903,992
$ 12,957,714
Business -type Activities:
Net investment in capital assets
$
14,082,989
$ 13,713,525
$ 13,037,012
$ 14,673,046
$ 14,718,841
$ 14,167,067
$ 13,402,412
$ 12,681,504
$ 12,321,453
$ 13,078,584
Restricted
-
-
-
-
-
-
-
-
-
-
Unrestricted
3,581,512
3,997,271
4,975,318
4,315,056
4,884,793
5,408,598
5,632,617
5,781,969
6,117,202
5,883,331
Total Business -type Activities Net Position
$
17,664,501
$ 17,710,796
$ 18,012,330
$ 18,988,102
$ 19,603,634
$ 19,575,665
$ 19,035,029
$ 18,463,473
$ 18,438,655
$ 18,961,915
Primary government:
Net investment in capital assets
$
21,042,321
$ 21,044,422
$ 20,562,582
$ 25,403,302
$ 25,310,619
$ 24,428,543
$ 23,687,261
$ 22,740,460
$ 22,269,832
$ 23,101,875
Restricted
-
-
-
-
579,809
579,320
940,739
1,572,614
1,343,543
1,776,769
Unrestricted
10,041,034
10,215,733
10,281,979
8,757,466
8,395,030
8,420,335
8,372,343
7,420,212
7,729,272
7,040,985
Total Governmental Activities Net Position
$
31,083,355
$ 31,260,155
$ 30,844,561
$ 34,160,768
$ 34,285,458
$ 33,428,198
$ 33,000,343
$ 31,733,286
$ 31,342,647
$ 31,919,629
Note: The Village implemented GASB Statement No.63 during the fiscal year ended September 30, 2013 and utilized the new tenninclogy for allyear, presented.
120
VILLAGE OF TEQUESTA, FLORIDA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Expenditures
Go -ental activities:
General government
S
1,344,038
S 1,501,344
S 1,503,750
S
1,591,575
S
1,629,115
S 1,642,948
S 1,770,326
S 1,714,571
S 1,918,843
S 2,201,162
Public safety
5,784,245
5,807,477
6,313,835
5,989,357
6,210,365
6,207,866
6,222,408
5,812,114
7,270,731
7,004,196
Transportation
736,844
774,966
843,960
857,456
898,458
1,049,062
1,009,693
1,161,613
1,381,760
1,650,162
Leisure scrviccs
539,450
639,590
710,685
635,671
635,110
640,513
583,445
566,585
663,524
690,068
Int- on long-term debt
206,126
180,770
169,792
158,685
146,868
135,204
114,398
124,331
117,709
111,504
Total Governmental Activities Expenditures
8,610,703
8,904,147
9,542,022
9,232,744
9,519,916
9,675,593
9,700,270
9,379,214
11,352,567
11,657,092
Busmcss-type activities:
Water
3,760,426
3,907,950
3,989,517
3,829,330
4,017,097
4,204,955
4,782,022
4,911,816
4,726,849
5,038,740
Stormwater
215,163
226,498
223,421
194,331
207,526
221,283
279,051
262,413
490,405
338,758
Rcfusc and recycling
420,081
444,449
431,156
444,302
468,637
484,165
489,977
499,670
489,874
479,278
Total Business -type Activities Expenses
4,395,670
4,578,897
4,644,094
4,467,963
4,693,260
4,910,403
5,551,050
5,673,899
5,707,128
5,856,776
Total Primary Government Program Expenses
S
13,006,373
S 13,483,044
S 14,186,116
S
13,700,707
S
14,213,176
S 14,585,996
S 15,251,320
S 15,053,113
S 17,059,695
S 17,513,868
Program Revenues
Gownion,nital activities:
Charge for scrviccs:
Gcncral government
S
475,244
S 302,182
S 316,816
S
568,452
S
742,438
S 695,801
S 694,220
S 786,792
S 814,596
S 865,589
Public safety
863,391
783,774
899,639
1,283,728
1,270,308
1,142,593
1,755,652
1,563,375
1,734,116
1,775,824
Transportation
12
-
-
-
-
4,480
-
-
-
-
Uisureservi
50,219
72,487
92,003
77,955
71,939
86,349
76,918
67,777
69,570
83,749
Operating grants and contributions
18,711
67,842
24,354
58,746
60,260
95,145
63,148
48,300
9,505
10,235
Capital grants and contributions
57,736
100,000
2,689,626
119,200
73,828
23,657
Total Governmental Activities Program Revenues
1,465,313
1,226,285
1,432,812
4,678,507
2,264,145
2,024,368
2,589,938
2,466,244
2,701,615
2,759,054
Business -type Activities
Charges for scrviccs:
Water
3,463,564
3,863,439
4,076,132
4,585,287
4,436,958
4,018,755
4,155,865
4,422,030
4,826,495
5,487,305
Stormwater
299,729
314,569
313,126
314,264
323,193
323,513
323,363
319,993
325,005
340,118
Rcfusc and recycling
402,439
414,312
414,657
436,142
487,392
482,422
480,795
478,616
490,801
493,753
Community development
-
-
-
-
-
-
-
-
-
-
Operating grants and contributions
-
-
51,511
-
-
-
-
-
-
-
Capital grants and contributions
-
-
-
-
-
-
-
-
-
-
Total Business -type Activities Program Revenues
4,165,732
4,592,320
4,855,426
5,335,693
5,247,543
4,824,690
4,960,023
5,220,639
5,642,301
6,321,176
Total Primary Government Program Revenues
S
5,631,045
S 5,818,605
S 6,288,238
S
10,014,200
S
7,511,688
S 6,849,058
S 7,549,961
S 7,686,883
S $343,916
S 9,080,230
Net (Expense) Revenue
Gownion,mal activities
S
(7,145,390)
S (7,677,862)
S (8,109,210)
S
(4,554,237)
S
(7,255,771)
S (7,651,225)
S (7,110,332)
S (6,912,970)
S (8,650,952)
S (8,898,038)
Business -type activities
(229,938)
13,423
211,332
867,730
554;283
(85,713)
(591,027)
(453,260)
(64,827)
464,400
Total Primary Government Net Expense
S
(7,375,328)
S (7,664,439)
S (7,897,878)
S
(3,686,507)
S
(6,701,488)
S (7,736,938)
S (7,701,359)
S (7,366,230)
S (8,715,779)
S (8,433,638)
Now: The Village implemented GASB Statement No. 63 during
the fiscal year
ended September
30, 2013 and utiIi-d
the new terminology
for
all years presented.
121
General Revenues
Governmental activities:
Taxes:
Property taxes
Other taxes
Franchise fees based on gross receipts
Unrestricted intergovernmental
Unrestricted investment earnings
Miscellaneous revenues
Gain on sale of capital assets
Transfers
Total Governmental Revenues and transfers
Business -type Activities
Unrestricted Investment earnings
Miscellaneous revenues
Transfers
Total Business -type Activities
Total Primary Government
Change in net position:
Governmental activities
Business -type activities
Total Primary Government
VILLAGE OF TEQUESTA, FLORIDA
CHANGES IN NET POSITION (CONTINUED)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
2008 2009 2010 2011 2012 2013
2014 2015 2016 2017
$ 5,661,200 $ 5,173,808 $ 4,643,816 $ 4,341,668 $ 4,268,732 $ 4,339,215 $ 4,767,948 $ 5,275,411 $ 5,683,707 $ 6,098,723
1,123,272 1,285,063 1,315,006 1,266,681 1,235,941 1,266,929 1,216,100 1,304,312 1,271,278 1,512,354
462,296 466,541 435,766 412,441 393,734 380,160 401,859 462,312 449,126 452,496
783,034 702,616 717,673 724,400 718,277 735,924 770,616 811,044 822,390 830,570
152,602 8,725 71,067 32,775 49,173 22,316 13,184 7,139 8,465 15,605
37,621 171,614 208,754 116,707 99,072 77,390 53,406 17,739 27,041 32,676
- - - - - - - 13,073 23,123 9,336
120,600 - - - - - - - - -
8,340,625 7,808,367 7,392,082 6,894,672 6,764,929 6,821,934 7,223,113 7,891,030 8,285,130 8,951,760
86,811
(9,208)
49,973
28,074
30,448
20,727
14,976
9,986
14,601
28,064
39,955
42,080
40,229
79,968
30,801
37,017
35,415
20,432
25,408
30,796
(120,600)
-
-
-
-
-
-
-
-
-
6,166
32,872
90,202
108,042
61,249
57,744
50,391
30,418
40,009
58,860
8,346,791
7,841,239
7,482,284
7,002,714
6,826,178
6,879,678
7,273,504
7,921,448
8,325,139
9,010,620
1,195,235 130,505 (717,128) 2,340,435 (490,842) (829,291) 112,781 978,059 (365,822) 53,722
(223,772) 46,295 301,534 975,772 615,532 (27,969) (540,636) (422,842) (24,818) 523,260
$ 971,463 $ 176,800 $ (415,594) $ 3,316,207 $ 124,690 $ (857,260) $ (427,855) $ 555,217 $ (390,640) $ 576,982
Note: The Village implemented GASB Statement No.63 during the fiscal year ended September 30, 2013 and utilized the new terminology for all years presented.
122
VILLAGE OF TEQUESTA, FLORIDA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
ACCRUAL BASIS OF
Note: The Village implemented GASB Statement No. 54 for the fiscal year ended September 30, 2011
123
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
General Fund
Reserved
$ 82,197
$ 383,766
$ 129,394
$ -
$ -
$ -
$ -
$ -
$ -
$ -
Unreserved
5,180,611
4,296,418
3,846,418
-
-
-
-
-
-
-
Nonspendable
-
-
-
228,049
178,478
144,581
207,869
161,036
174,985
212,042
Restricted
-
-
-
419,591
549,034
575,287
668,050
790,582
995,512
1,440,911
Assigned
-
-
-
1,372,125
1,481,792
1,000,000
1,013,600
1,010,978
1,060,578
1,214,418
Unassigned
2,009,180
1,487,198
1,921,295
1,714,008
2,024,550
2,079,187
1,478,525
Total General Fund
$ 5,262,808
$ 4,680,184
$ 3,975,812
$ 4,028,945
$ 3,696,502
$ 3,641,163
$ 3,603,527
$ 3,987,146
$ 4,310,262
$ 4,345,896
All Other Governmental Funds
Reserved
12,752
29,508
117,838
-
-
-
-
-
-
-
Unreserved, reported in:
Special revenue fund
391,527
22,037
21,072
-
-
-
-
-
-
-
Capital Projects funds
803,511
1,502,939
1,366,119
-
-
-
-
-
-
-
Restricted
-
-
-
45,771
30,775
4,033
291,654
286,965
348,031
335,858
Assigned
646,977
608,377
159,726
9,726
16,441
110,232
60,149
Total Other Governmental Funds
$ 1,207,790
$ 1,554,484
$ 1,505,029
$ 692,748
$ 639,152
$ 163,759
$ 301,380
$ 303,406
$ 458,263
$ 396,007
Note: The Village implemented GASB Statement No. 54 for the fiscal year ended September 30, 2011
123
Rcv
Taxe
Tn[ergovennnetrtal
Franchise fees
Charges Por services
Tntragovennn-W
G,-,-,,ibutions and donations
Lice-, .,d permits
i-
-Fite, and forfeit
Miscellaneous
R-, .,d royalties
TntTo, fees
Total Rcvcnocs
Expenditures
Cnrrelt[:
Gelteral govennnelt[
Public sakty
Traftsporta[ion
Leice
m s
Capital outlay
Debt service:
P'i-ipal
interest
Fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Finnncing Snorces (Uses)
T, -fern
T,.,,fers-out
Capital lease atntception
Otter proceeds
Total Other Finnncing Snorces (Uses)
Na Chnngc in Fond Bxlnnccs
Debt Service ns n Percentage of
Nnncapital Expcnditores
124
VILLAGE OF TEQUESTA, FLORIDA
CHANGES IN FUND
BALANCES
OF GOVERNMENTAL FUNDS
LAST TEN
FISCAL YEARS
(MODIFIED
ACCRUAL
BASIS OF ACCOUNTING)
3008
3009
3010
3011
3013
3013
3014
3015
3016
3017
S 6,871,639
S 6,458,871
S 5,958,833
S 5,608349 S
5,504,673 S
5,606,144
S 5,984,048
S 6,579,733
S 6,954,985
S 7,611,077
783,034
734375
839,110
776,500
755,793
751738
816333
841,950
835,990
836,780
463396
466,541
435,766
411441
393,734
380,160
401,859
463313
449,136
451496
574,937
597,369
687333
858,639
948395
901,659
1,103496
1,193143
1346,301
1373994
380,100
393990
307,740
333,110
503,163
503,709
519,188
534,416
550350
561,350
76,448
37,583
-
-
136,944
61,185
31,166
17394
79,733
37,683
399,059
311,371
379,835
333913
417,703
330,569
433,438
346,539
554,591
646,136
153603
8,735
71,067
33775
49,173
33316
1 3, 184
7,139
8,465
15,605
40,779
34,877
31,731
304,373
57,539
43187
319,598
150333
67,010
33743
38,343
80,603
63009
141,903
86,064
98341
64,855
30,017
38389
40,660
103,637
130,596
161,493
163651
167,636
147303
136,906
193356
198,683
303,965
3575
851
18,357
9,685338
9,034,653
8,834,894
8,883,553
9,039,073
8,846301
9,813,051
10,344301
10,963,633
11,701,478
1330,338
1,373,158
1341,475
1,410,417
1,469,615
1,538314
1,614,391
1,615339
1,811,777
3104,039
5,439,303
5,411,745
5,530,734
5,565,091
5,903568
5,903479
5,900,978
6,301,180
6,154,309
6,633707
693553
710384
738333
714,934
735,833
879,169
858,787
1010,136
1303,513
1,463533
467,740
563714
619340
548,739
553003
561,938
507,069
537,333
609,009
639,764
357373
753980
594,334
973,810
335,689
130399
831340
399,457
309399
356,334
573743
378,831
384,833
371035
383537
347,809
306,411
334,630
438,048
440,676
300,336
171397
159,506
148,186
137,037
135,054
114398
113,986
106,848
93164
5,890
9,473
10,356
10,499
9,841
11,870
13736
10345
18,643
19340
8,855,973
9,370,583
9,578,731
9,643,701
9,415,113
9377,033
10,145,910
10,313386
10,641546
11737,436
839365
(335,930)
(753,837)
(759,148)
(386,040)
(530,731)
(333859)
131,915
333076
(35,958)
934300
1,643813
373,549
350,000
351300
430,440
150,000
85,000
366,800
106,000
(803,700)
(1,643813)
(373,549)
(350,000)
(351,300)
(430,440)
(I 50,000)
(85,000)
(366,800)
(106,000)
-
-
-
-
-
-
433844
353,730
133774
-
33,133
9336
120,600
-
-
-
-
-
433844
353,730
155,897
9336
$ 949,965
S (335,930)
S (753,837)
S (759,148) S
(386,040) S
(530,731)
S 99,985
S 385,645
S 477,973
$ (36,633)
8,99%
538%
4,95%
4,84%
4,62%
4,03%
4,52%
437%
5,18%
4,68%
124
VILLAGE OF TEQUESTA, FLORIDA
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Centrally
Real Pronerty Personal Pronertv Assessed Prot
Total
Estimated
Estimated
Estimated
Estimated
Actual "Just"
Actual 'Just"
Value as
Actual 'Just"
Taxable
Direct
Taxable
Value of
Taxable
Value of
Taxable
Fiscal Year Ended
Assessed
Taxable
Assessed
Taxable
Assessed
September 30
Value
Property
Value
Property
Value
2008 $
992,309,662
$ 1,410,466,330
$ 24,589,752
$ 27,733,698
$ 489,214 $
2009
905,243,765
1,263,380,924
20,238,412
26,800,875
724,859
2010
813,253,151
1,087,782,592
19,867,770
25,872,707
713,541
2011
759,663,152
990,741,690
20,087,425
26,205,842
471,680
2012
746,532,525
972,735,340
17,997,653
23,646,754
487,407
2013
760,886,279
985,098,719
17 464,955
23,010389
1,559,808
2014
797,213,933
1,036,624,755
17,442,002
22,943,347
1,675,609
2015
844,999,610
1,154,086,000
17,344,269
22,968,598
1,593,192
2016
909,292,932
1,269,361,269
19,880,161
25,574,708
1,810,329
2017
978 487,013
1,404,754,183
21837763
27,617,131
1,900 210
Source: Palm Beach County
Property Appraiser's office:
Form DR -403V
Revised Recapitulation
of the Ad Valorem
Rolls of Tequesta,
Palm Beach
County Florida
Total
Estimated
Estimated
Assessed
Actual "Just"
Actual "Just"
Value as
Value of
Taxable
Direct
Value of
Percentage of
Taxable
Assessed
Tax
Taxable
Actual
Property
Value
Rate
Property
Value
489,214
$ 1,017,388,628
5.7671
$ 1,438,689,242
71%
730,883
926,207,036
5.7671
1,290,912 682
72%
718,791
833,834,462
5.7671
1,114,374,090
75%
476,546
780,222,257
5.7671
1,017,424,078
77%
491,873
765,017,585
5.7671
996,873,967
77%
1,564811
779,911,042
5.7671
1,009673,919
77%
1,680,227
816,331,544
6.0500
1,061,248,329
77%
1,832,732
863,937,071
6.2920
1,178,887,330
73%
1,837,722
930,983,422
6.2920
1,296,773,699
72%
1,907953
1,002224986
6.2920
1,434279267
70%
125
VILLAGE OF TEQUESTA, FLORIDA
PROPERTY TAX RATES - ALL DIRECT AND OVERLAPPING GOVERNMENTS
(Per $1,000 of Assessed Value)
LAST TEN FISCAL YEARS
126
Direct Rates
Overlapping Rates (1)
S. Florida
Jupiter
Fl. Island
Children's
County
Fiscal Year Ended
Village
County
Everglades
School
County
Water Mgmt.
Inlet
Nay. District
Services
Health Care
September 30
Rate
County
Debt
Construction
District
Library
District
District
(FIND)
Council
District
2008
5.7671
3.7811
0.2002
0.0894
7.3560
0.5441
0.5346
0.0909
0.0345
0.5823
0.8900
2009
5.7671
3.7811
0.1845
0.0894
7.2510
0.5427
0.5346
0.1000
0.0345
0.6009
0.9975
2010
5.7671
4.3440
0.2174
0.0894
7.9830
0.5518
0.5346
0.1253
0.0345
0.6898
1.1451
2011
5.7671
4.7500
0.2460
0.0894
8.1540
0.6069
0.5346
0.1364
0.0345
0.7513
1.1451
2012
5.7671
4.7815
0.2110
0.0624
8.1800
0.6081
0.1785
0.1364
0.0345
0.7475
1.1250
2013
5.7671
4.7815
0.2087
0.0613
7.7780
0.6066
0.1757
0.1364
0.0345
0.7300
1.1220
2014
6.0500
4.7815
0.2037
0.0587
7.5860
0.6065
0.1685
0.1364
0.0345
0.7025
1.0800
2015
6.2920
4.7815
0.1914
0.0548
7.5940
0.6024
0.1577
0.1285
0.0345
0.6745
1.0800
2016
6.2920
4.7815
0.1462
0.0506
7.5120
0.5985
0.1459
0.1216
0.0320
0.6677
1.0426
2017
6.2920
4.7815
0.1327
0.0471
7.0700
0.5933
0.1359
0.1145
0.0320
0.6833
0.8993
(1) Overlapping rates are those of local and
county governments
that apply to property owners
within the Village of Tequesta.
Sources: Palm Beach
County Property Appraiser's office
126
VILLAGE OF TEQUESTA, FLORIDA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
Source: Palm Beach County Tax Collector's System, tax year 2017
127
2017
2008
Percentage of
Percentage of
Taxable
Total Village
Taxable
Total Village
Assessed
Taxable
Assessed
Taxable
Taxpayer
Value
Rank
Value
Value
Rank
Value
Tamwest Realty, Inc (County Line Plaza)
$ 22,616,882
1
2.26%
$ 19,415,557
1
1.91%
GHM Tequesta Holdings, LLC
15,658,517
2
1.56%
DDR S.E. Tequesta, LLC (Teq. Shoppes)
13,500,612
3
1.35%
9,000,000
2
0.88%
RCMRJV, LLC
10,852,162
4
1.08%
7,400,000
4
0.73%
Terrace Communities Tequesta, LLC
8,126,541
5
0.81%
7,693,231
3
0.76%
Florida Power & Light Co.
8,110,296
6
0.81%
ALS North America, Inc.
5,876,367
7
0.59%
SLO ML LLC
5,215,741
8
0.52%
5,260,477
6
0.52%
Taylor William B.
4,146,061
9
0.41%
Elliot Edward W JR
4,092,121
10
0.41%
Royal Tequesta LLC
5,278,909
5
0.52%
Casa Del Sol of Tequesta, LLC
5,257,610
7
0.52%
JMZ Tequesta Properties, INC
5,157,852
8
0.51%
AHC Purchaser Inc
4,822,561
9
0.47%
Tequesta Country Club
4,430,714
10
0.44%
Total
$ 98,195,300
9.80%
$ 73,716,911
7.26%
Source: Palm Beach County Tax Collector's System, tax year 2017
127
VILLAGE OF TEQUESTA, FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Taxes
Collected within the
Collections
96.6% $
Fiscal Year Levied for
Fiscal Year of the Levy
in
Total Collections to Date (2)
Ended for the Fiscal
Percentage
Subsequent
Percentage
September 30. Year (1)
Amount of Levv
Years
Amount of Levv
2008 $
5,863,796 $
5,663,439
96.6% $
11,089 $
5,674,528
96.8%
2009
5,341,529
5,162,044
96.6%
24,896
5,186,940
97.1%
2010
4,809,222
4,627,732
96.2%
13,079
4,640,811
96.5%
2011
4,513,447
4,338,395
96.1%
22,498 *
4,360,893
96.6%
2012
4,425,793
4,254,037
96.1%
17,343
4,271,380
96.5%
2013
4,502,727
4,337,570
96.3%
21,690
4,359,260
96.8%
2014
4,946,692
4,755,463
96.1%
14,121
4,769,584
96.4%
2015
5,437,423
5,237,859
96.3%
5,185
5,243,044
96.4%
2016
5,866,490
5,651,698
96.3%
4
5,651,702
96.3%
2017
6,314,407
6,083,598
96.3%
--
6,083,598
96.3%
(1) The tax levied in a fiscal year is based on the taxable value ofthe prior year
(2) Includes discounts taken by property taxpayers.
*Break down by the years for this amount was not available.
Source: Palm Beach County Tax Collector's office.
128
VILLAGE OF TEQUESTA, FLORIDA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Note: Details regarding the Village's outstanding debt can be found in the notes to the financial statements.
129
Governmental Activities
Business -type Activities
Total
Percentage
Fiscal Year Ended
Revenue Notes
Capital
Revenue Notes
Primary
of Personal
Per
September 30
Bonds Payable
Leases
Bonds Payable
Government
Income
Capita
2008
$ 3,917,908 $
225,398
$ 6,929,640
$ 11,072,946
3.39%
1,877
2009
3,709,027
155,448
6,668,462
10,532,937
3.03%
1,794
2010
3,491,028
88,613
6,405,528
9,985,169
3.04%
1,774
2011
3,263,515
45,092
6,132,618
9,441,225
2.92%
1,677
2012
3,026,070
-
5,849,788
8,875,858
2.94%
1,572
2013
2,778,261
-
5,553,570
8,331,831
2.65%
1,474
2014
2,519,635
385,059
5,245,703
8,150,397
2.50%
1,448
2015
2,249,720
561,001
4,925,818
7,736,539
2.37%
1,366
2016
1,968,023
547,423
4,592,420
7,107,866
1.81%
1,247
2017
1,674,030
400,739
4,244,561
6,319,330
1.53%
1,103
Note: Details regarding the Village's outstanding debt can be found in the notes to the financial statements.
129
VILLAGE OF TEQUESTA, FLORIDA
RATIO OF NET OUTSTANDING DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS
(1) Florida Estimates of Population - Bureau of Economic and Business research, University of Florida.
(2) Form DR -422 "Certificate of Final Taxable Value"
130
(2)
Assessed
(A)
(B)
(A - B)
Ratio of Net
Net
Value of
Gross
Debt Service
Net
O/S Debt to
Outstanding
Fiscal Year Ended
(1)
Taxable
Outstanding
Funds
Outstanding
Value of
Debt
September 30,
Population
Property
Debt
Available
(O/S) Debt
Taxable Property
Per Capita
2008
5,898 S
1,017,388,628 S
11,072,946
S 369,490
S 10,703,456
1.05%
1,815
2009
5,872
926,207,036
10,532,937
-
10,532,937
1.14%
1,794
2010
5,629
833,906,426
9,985,171
9,985,171
1.20%
1,774
2011
5,629
780,222,257
9,441,225
9,441,225
1.21%
1,677
2012
5,646
765,017,585
8,875,858
8,875,858
1.16%
1,572
2013
5,652
779,911,042
8,331,831
8,331,831
1.07%
1,474
2014
5,629
816,331,544
8,150,397
8,150,397
1.00%
1,448
2015
5,665
863,937,071
7,736,539
7,736,539
0.90%
1,366
2016
5,699
930,983,422
7,107,866
7,107,866
0.76%
1,247
2017
5,731
1,002,224,986
6,319,330
6,319,330
0.63%
1,103
(1) Florida Estimates of Population - Bureau of Economic and Business research, University of Florida.
(2) Form DR -422 "Certificate of Final Taxable Value"
130
VILLAGE OF TEQUESTA, FLORIDA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Total Assessed Value (1) $ 1,002,224,986
Legal Debt Margin
Debt limitation - 10% of total assessed value (2) 100,222,499
Total bonded debt outstanding - -
Less amount in debt service fund -
Total Debt Applicable to Limitation -
Legal Debt Margin $ 100,222,499
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Debt Limit $ 93,130,772 $ 83,442,520 $ 83,390,643 $ 78,022,226 $ 76,501,759 $ 77,991,104 $ 81,633,154 $ 86,393,707 $ 93,098,342 $ 100,222,499
Total Net Debt Applicable to Limit - - - - - - - - - -
Legal debt margin $ 93,130,772 $ 83,442,520 $ 83,390,643 $ 78,022,226 $ 76,501,759 $ 77,991,104 $ 81,633,154 $ 86,393,707 $ 93,098,342 $ 100,222,499
Total Net Debt Applicable to Limit
as a Percentage of Debt Limit 0.00%
(1) Form DR -422 "Certificate of Final Taxable Value"
(2) Village of Tequesta Charter Section 5.02 Limitations
0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
131
VILLAGE OF TEQUESTA, FLORIDA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF SEPTEMBER 30, 2017
(a) Sources: Palm Beach County and PBC School Board
Note: For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values.
Applicable percentages were estimated by determining the portion of the Village taxable assessed value and dividing it by the PBC taxable
assessed value. (Data provided by the PBC Property Appraiser's Office)
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Village of Tequesta. This schedule
estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the Village of
Tequesta. This process recognizes that, when considering the Village's ability to issue and repay long-term debt, the entire debt burden
borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident and
therefore responsible for repaying the debt of each overlapping government.
132
Estimate
Estimate
Share of
Net
Percentage
Direct and
Debt
Applicable to
Overlapping
Governmental Unit
Outstanding
Tequesta
Debt
(a)
(b)
OVERLAPPING
Palm Beach County
$ 103,305,000
0.61%
$ 630,161
P.B.C. School Board
11,396,000
0.61%
69,516
Subtotal, overlapping debt
699,676
DIRECT DEBT
Village of Tequesta
2,074,769
100.00%
2,074,769
Total direct and overlapping debt
$ 2,774,445
(a) Sources: Palm Beach County and PBC School Board
Note: For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values.
Applicable percentages were estimated by determining the portion of the Village taxable assessed value and dividing it by the PBC taxable
assessed value. (Data provided by the PBC Property Appraiser's Office)
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Village of Tequesta. This schedule
estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the Village of
Tequesta. This process recognizes that, when considering the Village's ability to issue and repay long-term debt, the entire debt burden
borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident and
therefore responsible for repaying the debt of each overlapping government.
132
VILLAGE OF TEQUESTA, FLORIDA
PLEDGED -REVENUE COVERAGE
Note: Details regarding the Village's outstanding debt can be found in the notes to the financial statements.
(1) Pledged revenues include franchise fees, licenses and permits from Fund 101.
Fund 101 closed in fiscal year 2009.
(2) Debt paid in full in fiscal year 2008.
133
LAST TEN FISCAL YEARS
Net
Fiscal
Pledged
Less: Available
Debt Service (2)
Year
Revenues (1)
Expenditures Revenue
Principal Interest Coverage
2008
515,700
275,836 239,864
259,846 15,990 0.87%
2009
-
- -
- - -
2010
2011
2012
2013
2014
2015
2016
2017
Note: Details regarding the Village's outstanding debt can be found in the notes to the financial statements.
(1) Pledged revenues include franchise fees, licenses and permits from Fund 101.
Fund 101 closed in fiscal year 2009.
(2) Debt paid in full in fiscal year 2008.
133
VILLAGE OF TEQUESTA, FLORIDA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Fiscal Population Personal
Year (1) Income (2
Per
Palm Beach
Capita
County
Personal
Median Unemployment
Income (2)
Aee (3) Rate (4)
2008
5,898 $
326,224,278
$ 55,311
47.5
7.3%
2009
5,872
347,311,184
59,147
47.5
9.7%
2010
5,629
328,497,182
58,358
47.5
11.4%
2011
5,629
323,447,969
57,461
49.9
11.0%
2012
5,646
302,061,000
53,500
49.9
9.2%
2013
5,652
314,409,456
55,628
49.9
7.1%
2014
5,629
326,397,565
57,985
49.9
6.0%
2015
5,665
379,067,810
66,914
49.9
5.3%
2016
5,699
391,766,357
68,743
49.9
5.2%
2017
5,731
412,322,526
71,946
49.9
3.7%
Sources:
(1) Florida Estimates of Population - Bureau of Economic and Business research, University of Florida.
(2) US Department of Commerce, Bureau of Economic Analysis, Regional Economic
Information System.
(3) U.S. Census Bureau, 2010 Census
(4) U.S. Department of Labor, Bureau of Labor Statistics, Labor Market Statistics Center,
Local Area Unemployment Statistics Program
134
VILLAGE OF TEQUESTA, FLORIDA
PRINCIPAL EMPLOYERS - PALM BEACH COUNTY
CURRENT YEAR AND NINE YEARS AGO
2017 2008
53,098 N/A 56,809 N/A
Source: Business Development Board of Palm Beach County
Employment information for the Town is not available
Information for year 2008 is not available, information for the year 2009 is used
135
Percentage of
Percentage of
Total County
Total County
Employer
Employees
Rank
Employment
Employees
Rank
Employment
Palm Beach County School Board
21,200
1
N/A
21,718
1
N/A
Tenet Healthcare Corporation
6,136
2
N/A
4,500
3
N/A
Palm Beach County Government
5,928
3
N/A
11,319
2
N/A
NextEra Energy / Florida Power & Light
4,021
4
N/A
3,632
4
N/A
Hospital Corporation of America (HCA)
3,550
5
N/A
3,395
5
N/A
Boca Raton Regional Hospital
2,800
6
N/A
2,100
10
N/A
Florida Atlantic University
2,761
7
N/A
2,838
7
N/A
Veterans Health Administration
2,468
8
N/A
2,207
8
N/A
Bethesda Health, Inc
2,200
9
N/A
Office Depot (Headquarters)
2,034
10
N/A
2,100
9
N/A
Jupiter Medical Center
Wackenhut Corporation
3,000
6
N/A
53,098 N/A 56,809 N/A
Source: Business Development Board of Palm Beach County
Employment information for the Town is not available
Information for year 2008 is not available, information for the year 2009 is used
135
VILLAGE OF TEQUESTA, FLORIDA
FULL-TIME EMPLOYEES BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Function/Program
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Governmental Activities
General government
15.0
15.0
10.0
10.5
10.5
11.5
10.5
10.3
10.3
10.8
Public safety
50.0
49.0
50.0
49.0
50.0
53.0
51.0
51.0
52.0
53.0
Transportation
4.0
4.0
4.0
4.0
4.0
5.0
5.0
5.9
6.9
8.1
Leisure services
3.0
3.0
3.0
3.0
3.0
3.0
3.0
3.0
3.0
3.0
Total Governmental Activities
72.0
71.0
67.0
66.5
67.5
72.5
69,5
70.2
72.2
74.9
Business -type Activities
Water
15.0
16.0
15.0
14.5
14.5
16.5
16.5
18.6
18.6
20.4
Stormwater
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.2
2.2
1.7
Total Business -type Activities
16.0
17.0
16.0
15.5
15.5
17.5
17.5
19.8
20.8
22.1
Total Primary Government
88.0
88.0
83.0
82.0
83.0
90.0
87.0
90.0
93.0
97.0
Source: Village of Tequesta Human Resource Department
Notes: A full-time employee is scheduled to work 2,088 hours per year (including vacation and sick leave).
Full -time -equivalent employment is calculated by dividing total labor hours by 2,088.
136
VILLAGE OF TEQUESTA, FLORIDA
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
137
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Governmental Activities
General govermnent
Registered voters
4,439
4,612
4,505
4,543
4,676
4,854
4,702
4,634
4,813
4,017
Public safety:
No. of full-time certified police officers
17
18
17
19
11
* 18
20
19
18
19
No. of calls received
3,535
3,533
3,178
3,266
3,272
3,571
3,548
3,853
3,109
3,442
No. ofarrests
224
251
296
204
129
136
168
174
94
108
No. ofparking violations
171
131
124
82
149
328
120
207
61
39
No. ofincident numbers issued
965
887
881
595
622
691
725
552
345
312
Fire department:
No. of full-time certified firefighters
20
21
21
22
21
21
18
22
22
22
No. ofemergencyresponses
1,143
1,189
1,043
1,096
1,155
1,372
1,197
1,291
1,409
1,286
No. oftransports
621
651
562
622
695
675
693
1,006
817
722
No. offires extinguished/alarms
522
538
481
474
460
697
504
285
254
309
No. ofinspections
435
476
480
462
495
539
713
499
654
742
Building, zoning:
No. ofbuilding permits issued
906
784
812
800
883
914
929
1,034
1,583
1,755
No. ofbuilding inspections conducted
2,039
1,771
1,579
1,728
1,931
2,176
2,201
1,705
2,472
3,017
Leisure services:
No. of Spring Classes
8
8
10
10
10
10
8
8
12
10
No. of Suimner Classes
4
5
4
4
4
4
4
4
4
4
No. ofMovies
4
4
3
3
3
3
4
3
3
3
Business -type Activities
Water:
No. ofcustomers
4,968
4,983
4,982
5,019
4,996
5,037
5,039
5,038
5,055
5,042
Average daily consumption
2.351 mg
2.175 mg
2.175 mg
2.698 mg
2.550 mg
2.454 mg
2.422 mg
2.500 mg
2.600 mg
2.700 mg
Sources: Various Village departments
* The number is much lower than the year before due to increased
number
of reserve officers to cover for the full-time officers
that left the
department
during the FY 2012.
137
VILLAGE OF TEQUESTA, FLORIDA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Function/Prouram 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Governmental Activities
General government:
Municipal center 1 1
1
1
1
1
1
1
1
1
Public safety
Police:
No. of stations 1 1
1
1
1
1
1
1
1
1
No. of patrol units 7 9
15
15
11
10
11
10
12
10
Fire:
No. ofstations 1 1
1
1
1
1
1
1
1
1
No. of ambulances 2 2
3
3
3
3
3
2
2
2
No. ofpumpers 2 2
3
3
3
3
3
3
3
2
Transportation:
Miles of street lane miles 43 *24
24
24
24
24
24
24
24
24
No. ofbridges 1 1
1
1
1
1
1
1
1
1
Leisure services
No.ofparls 3 4
4
5
5
5
6 **
6
6
6
No. ofpark acreage 48 50
53
54
54
54
62 **
62
62
62
No. ofplaygrounds 2 2
2
2
2
2
2
2
2
2
No. ofbaseball/softball diamonds 3 3
3
3
3
3
3
3
3
3
No. ofskate-parks 1 1
1
1
1
1
1
1
1
1
Business -type activities:
Water:
Miles of water mains 72 72
73
72
72
73
73
73
77
77
No. offire hydrants 430 430
430
430
430
433
409
430
456
435
Storage capacity (thousands of gallons) 3,250 3,250
3,250
3,250
3,250
2,750
2,750
2,750
2,750
2,750
Sources: Various Village departments
This report is presenting the revised method in calculating the miles of street
lane
** The green area has been identified as a park (Linear/Green Mile park)
19H
REPORTING SECTION
MARCUM
ACCOUNTANTS ADVISORS
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
We have audited, in accordance with the auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States, the financial
statements of the governmental activities, the business -type activities, each major fund, and the
aggregate remaining fund information of the Village of Tequesta (the Village), as of and for the
fiscal year ended September 30, 2017 and the related notes to the financial statements, which
collectively comprise the Village's basic financial statements, and have issued our report
thereon dated March 29, 2018.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Village's
internal control over financial reporting (internal control) to determine the audit procedures that
are appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the Village's
internal control. Accordingly, we do not express an opinion on the effectiveness of the Village's
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct, misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable
possibility that a material misstatement of the entity's financial statements will not be prevented,
or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
IN
MARCUMGROUP
MEMBER
139
Marcum LLP 525 Okeechobee Boulevard ■ Suite 750 ■ West Palm Beach, Florida 33401 ■ Phone 561.653.7300 ■ Fax 561.653.7301 marcumllp.com
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Village's financial statements are
free from material misstatement, we performed tests of its compliance with certain provisions of
laws, regulations, contracts, and grant agreements, noncompliance with which could have a
direct and material effect on the determination of financial statement amounts. However,
providing an opinion on compliance with those provisions was not an objective of our audit, and
accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing
Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
the Village's internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the entity's
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
?�k «f
West Palm Beach, FL
March 29, 2018
MARCUM
ACCOUNTANTS ADVISORS
MANAGEMENT LETTER IN ACCORDANCE WITH THE RULES OF THE
AUDITOR GENERAL OF THE STATE OF FLORIDA
To The Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
Report on the Financial Statements
We have audited the financial statements of the Village of Tequesta, Florida (the Village), as of
and for the fiscal year ended September 30, 2017, and have issued our report thereon dated
March 29, 2018.
Auditors' Responsibility
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of
the Florida Auditor General.
Other Reporting Requirements
We have issued our Independent Auditors' Report on Internal Control over Financial Reporting
and Compliance and Other Matters Based on an Audit of the Financial Statements Performed in
Accordance with Government Auditing Standards and Independent Accountants' Report on an
examination conducted in accordance with AICPA Professional Standards, AT -C Section 315,
regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor
General. Disclosures in those reports, which are dated March 29, 2018, should be considered in
conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i)l., Rules of the Auditor General, requires that we determine whether or not
corrective actions have been taken to address findings and recommendations made in the
preceding annual financial audit report. There were no recommendations made in the preceding
annual financial audit report.
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and
legal authority for the primary government and each component unit of the reporting entity be
disclosed in this management letter, unless disclosed in the notes to the financial statements. The
Village was incorporated in 1957 by laws of Florida 57-1915. There are no component units
related to the Village.
IN 141
MARCUMGROUP
MEMBER
Marcum LLP 525 Okeechobee Boulevard Suite 750 ■ West Palm Beach, Florida 33401 ■ Phone 561.653.7300 ■ Fax 561.653.7301 marcumllp.com
Financial Condition and Management
Section 10.554(1)(i)5.a. and 10.556 (7), Rules of the Auditor General, require that we apply
appropriate procedures and communicate the results of our determination as to whether or not the
Village has met one or more of the conditions described in Section 218.503(l), Florida Statutes,
and identification of the specific condition(s) met. In connection with our audit, we determined
that the Village did not meet any of the conditions described in Section 218.503(l), Florida
Statutes.
Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied
financial condition assessment procedures for the Village. It is management's responsibility to
monitor the Village's financial condition, and our financial condition assessment was based in
part on representations made by management and the review of financial information provided
by same. This assessment was done as of the fiscal year end.
Section 10.554(1)(1)2., Rules of the Auditor General, requires that we communicate any
recommendations to improve financial management. In connection with our audit, we did not have
any such recommendations.
Annual Financial Report
Sections 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, require us to apply
appropriate procedures and communicate the results of our determination as to whether the
annual financial report for the Village for the fiscal year ended September 30, 2017, filed with
the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes,
is in agreement with the annual financial audit report for the fiscal year ended September 30,
2017. In connection with our audit, we determined that these two reports were in agreement.
Additional Matters
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance
with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to
have occurred, that have an effect on the financial statements that is less than material but which
warrants the attention of those charged with governance. In connection with our audit, we did not
note any such findings.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the Florida
Auditor General, Federal and other granting agencies, Village Council, and management, and is
not intended to be and should not be used by anyone other than these specified parties.
ahN41_ LL?
West Palm Beach, FL
March 29, 2018
142
MARCUM
ACCOUNTANTS ADVISORS
INDEPENDENT ACCOUNTANTS' REPORT ON COMPLIANCE PURSUANT TO
SECTION 218.415 FLORIDA STATUTES
To The Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
We have examined the Village of Tequesta's (the Village) compliance with Section 218.415
Florida Statutes for the fiscal year ended September 30, 2017. Management is responsible for the
Village's compliance with the specified requirements. Our responsibility is to express an opinion
on the Village's compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants. Those standards require that we plan and
perform the examination to obtain reasonable assurance about whether the Village complied, in
all material respects, with the specified requirements referenced above. An examination involves
performing procedures to obtain evidence about whether the Village complied with the specified
requirements. The nature, timing, and extent of the procedures selected depend on our judgment,
including an assessment of the risks of material noncompliance, whether due to fraud or error.
We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable
basis for our opinion.
Our examination does not provide a legal determination on the Village's compliance with
specified requirements.
In our opinion, the Village complied, in all material respects, with Section 218.415 Florida
Statutes for the fiscal year ended September 30, 2017.
This report is intended to describe our testing of compliance with Section 218.415 Florida
Statutes and it is not suitable for any other purpose.
West Palm Beach, FL
March 29, 2018
IN
M/ARCUM GROUP
MEMBER
Marcum LLP 525 Okeechobee Boulevard Suite 750 ■ West Palm Beach, Florida 33401 ■ Phone 561.653.7300 ■ Fax 561.653.7301
143
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