HomeMy WebLinkAboutDocumentation_Regular_Tab 02_5/13/2021Agenda Item #2.
Regular Council
STAFF MEMO
Meeting: Regular Council - May 13 2021
Staff Contact: Hugh Dunkley, Finance Director Department: Finance
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Approve FY2020 Comprehensive Annual Financial Report Presentation by Marcum LLP
SUMMARY: -j
Presentation of the FY2020 Comprehensive Annual Financial Report (AFR) by independent CPA firm
of Marcum LLP.
ATTACHMENTS:
Tequesta 2020 Issued Report-ADA
Page 9 of 496
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Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Prepared By
Finance Department
The Village of Tequesta, Florida
Page 12 of 496
Agenda Item #2. VILLAGE OF TEQUESTA, FLORIDA
TABLE OF CONTENTS
I. INTRODUCTORY SECTION
Letter of Transmittal i-iv
Certificate of Achievement for Excellence in Financial Reporting v
Organization Chart vi
List of Principal Officials vii
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
Statement of Net Position
19
Statement of Activities
20
Fund Financial Statements
Balance Sheet — Governmental Funds
21
Reconciliation of the Balance Sheet of Governmental Funds to the
Statement of Net Position
22
Statement of Revenues, Expenditures and Changes in Fund Balances —
Governmental Funds
23
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
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
30-95
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule — General Fund
96
Note to the Budgetary Comparison Schedule
97
Firefighters' Pension Trust Fund
Schedule of Changes in the Village's Net Pension Liability and Related Ratios
98
Schedule of Village Contributions
99
Schedule of Investment Returns
100
Police Officers' Pension Trust Fund
Schedule of Changes in the Village's Net Pension Asset and Related Ratios
101
Schedule of Village Contributions
102
Schedule of Investment Returns
103
General Employees' Pension Trust Fund
Schedule of Changes in the Village's Net Pension Liability (Asset) and Related Ratios
104
Schedule of Village Contributions
105
Schedule of Investment Returns
106
Schedule of Changes in Total OPEB Liability and Related Ratios
107
Schedule of Village's Proportionate Share of the Net Pension Liability —
Florida Retirement System Pension
108
Schedule of the Village's Proportionate Share of the Net Pension Liability —
Retiree Health Insurance Subsidiary Program
109
Schedule of the Village's Contributions — Florida Retirement System Pension Plan
110
Schedule of the Village's Contributions — Retiree Health Insurance Subsidy Program
111
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Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
TABLE OF CONTENTS
II. FINANCIAL SECTION (CONTINUED)
SUPPLEMENTARY INFORMATION
Combining and Individual Fund Statements and Schedules
Combining Balance Sheet — Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
Budgetary Comparison Schedule — Building Fund
Budgetary Comparison Schedule — Special Law Enforcement Trust Fund
Budgetary Comparison Schedule — Capital Improvement Fund
Budgetary Comparison Schedule — Capital Projects Fund
Combining Statement of Fiduciary Net Position
Combining Statement of Changes in Fiduciary Net Position
III. STATISTICAL SECTION
Net Position by Component
Changes in Net Position
Fund Balances, Governmental Funds
Changes in Fund Balances, Governmental Funds
Assessed and Estimated Actual Value of Taxable Property
Property Tax Rates — All Direct and Overlapping Governments
Principal Property Taxpayers
Property Tax Levies and Collections
Ratios of Outstanding Debt by Type
Ratio of Net Outstanding Debt to Assessed Value and Net Bonded Debt
Per Capita
Computation of Legal Debt Margin
Direct and Overlapping Governmental Activities Debt
Demographic and Economic Statistics
Principal Employers — Palm Beach County
Full -time -Equivalent Village Government Employees by Function/Program
Operating Indicators by Function/Program
Capital Asset Statistics by Function/Program
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
Management Letter in Accordance with the Rules of the Auditor General of the
State of Florida
Independent Accountants' Report On Compliance Pursuant To Section 218.415
Florida Statutes
112-113
114
115
116
117
118
119-120
121
122
123-124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140-141
142-145
Hull
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Agenda Item #2.
INTRODUCTORY SECTION
Page 15 of 496
Agenda Item #2.
Village of Tequesta
345 Tequesta Drive
,•,
Tequesta.. FL 33469
March 31, 2021
To the Honorable Mayor,
Members of the Village Council
And Citizens of the Village of Tequesta, Florida
561-768-0700
www.tequesta.org
We are pleased to submit the Comprehensive Annual Financial Report of the Village of Tequesta, Florida
(the Village), for the fiscal year ended September 30, 2020.
This report provides the Village's Council, staff, our citizens, and other interested parties with detailed
information concerning the financial condition and activities of the Village government. State law requires
that all general-purpose local governments annually publish a complete set of financial statements within
nine months of the close of each fiscal year. The financial statements are presented in conformity with
generally accepted accounting principles (GAAP) and audited in accordance with generally accepted
auditing standards and government auditing standards by an independent auditing firm.
We believe that this report complies with these requirements and continues to present the Village's strong
tradition of full financial disclosure. This philosophy is reflected by the informative financial analysis, the
exhibits and statistical tables included herein.
The role of the Comprehensive Annual Financial Report is to assist in making economic, social and political
decisions and to assist in assessing accountability to the citizenry by:
Comparing actual financial results with the legally adopted budget, where appropriate;
Assessing financial condition and results of operations;
Assisting in determining compliance with finance related laws, rules and regulations; and
Assisting in evaluating the efficiency and effectiveness of Village operations.
Responsibility for both the accuracy of the presented data and the completeness and fairness of the
presentation, including all disclosures, rests with the management of the Village. We believe the data, as
presented, is accurate in all material respects; that it is presented in a manner designed to present fairly the
financial position and results of operations of the Village; and that all disclosures necessary to enable the
reader to gain an understanding of the Village's financial activity have been included.
Marcum LLP, Certified Public AccoLintants, have issued an unmodified ("clean") opinion on the Village
of Tequesta's financial statements for the fiscal year ended September 30, 2020. 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 introdLiction, overview, and analysis of the basic financial statements. MD&A
complements this letter of transmittal and should be read in conjunction with it.
Page 16 of 496
Agenda Item #2.
THE VILLAGE OF TEQUESTA
Profile
The Village of Tequesta, Florida is a municipal corporation organized on 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 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 utility 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. The legal level of budgetary control is therefore at the department level.
Local Economy and COVID-19 impact
The Village, located in Palm Beach County, is the third most populous county in the State of Florida
(approximately 1.47 million residents). The latest population estimate prepared by the Bureau of Economic
and Business Research, University of Florida indicates that the current population of the Village of Tequesta
is 5,874. 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.
11
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Agenda Item #2.
The negative adjustments to the state's economy forecast resulted from the Coronavirus outbreak. Since
July 2020, economic activity has slightly recovered as consumers redirected spending from the hard-hit
service sector to purchases of goods, with some spending down the atypically large savings that built up
during the pandemic. While all Florida industries have been impacted in the near term, Florida's leisure
and hospitality industry has a longer -term impact. The total number of tourists declined by 60.3 percent
from the prior year in the second quarter of 2020 and managed to recover to 3 5.4 percent of the prior year's
level.
The State's unemployment rate spiked to 13.8 percent in April 2020, dropped back to 6.4 percent by October
2020, notably better than the 6.9 percent for the nation as a whole. The unemployment rate for Palm Beach
County at the fiscal year end was 6.2 percent. The prediction is that the rate continues to decrease until it
reaches 3.7 percent from FY 2025-26 though FY 2027-28.
Another important element of a state's economic health is personal income growth. Florida's personal
income growth increased by 26.7 percent at an annual rate in the second quarter of 2020, due largely to the
various federal stimulus and relief programs. Growth remains positive (+2.3 percent) for the 2020-21 fiscal
year. Going forward, personal income is projected to decline by -1.1 percent in FY 2021-22 and then recover
by +4.5 percent in FY 2022-23.
The housing market has shown resiliency in the face of the pandemic. It continues to trudge forward,
although slowing from the stronger growth in the first half of FY 2019-20. Tequesta continues to see a
positive increase in property values. Per the Palm Beach County Property Appraiser's Office, gross taxable
value for calculating ad valorem proceeds increased from $1.123 billion during fiscal year 2019 to $1.173
billion used to calculate fiscal year 2020 revenues.
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 perhaps most 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 effective 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.
The Village continues to explore grant funding options and partnerships in an effort to control cost while
improving services and equipment.
MAJOR INITIATIVES
• Prepare a 5-year capital improvement /capital replacement plan and sustainable financing plan.
• Make upgrades to the Water Treatment Plant, which includes energy conservation projects, to
provide safe, reliable, cost-effective and environmentally responsible potable water.
• Maintain a reliable drinking water supply by rehabilitating upper Floridian aquifer wells and
construct a new surficial well.
• To advance a long-range plan for the replacement of the aging water distribution system.
• Develop a sustainable business plan for the new Community Center.
• Long --term road and sidewalk improvement plan.
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Agenda Item #2.
Continue to explore alternative revenLie sources, at both the state and federal level, with the
assistance of grant writers and other professional consultant services.
Develop and execute annexation strategy.
Continue to explore ways to reduce the cost of health care while sLlstaining sought after- benefits.
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, 2019. This was the thirty-eight 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 as well as the support of the other Village departments.
Special appreciation is also extended to Ms. Tatiana Racanati, Assistant Finance Director, whose dedicated
service made the cornpletion of this report all the more possible.
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,
e emy Allen, CPM
Ilage Manager
Hugh B. Dunkley, CPA, CGFO
Finance Director
Pag�v19 of 496
Agenda Item #2.
Government Finance Officers Association
Certificate of
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Achievement
for Excellence
i19
n Financial
Reporting
Presented to
Village of Tequesta
Florida
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
September 31, 2619
Executive Director/CEO
Pagcy20 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
ORGANIZATION CHART
SEPTEMBER 30, 2020
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Pagck l of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
LIST OF PRINCIPAL OFFICIALS
SEPTEMBER 30, 2020
VILLAGE COUNCIL
Abby Brennan
Mayor
Kyle Stone
Vice -Mayor
Laurie Brandon
Councilmember
Frank D'Ambra
Councilmember
Bruce Prince
Councilmember
VILLAGE OFFICIALS
Jeremy Allen, CPM
Village Manager
Corbett, White, Davis & Ashton,
PA Village Attorney
Lori McWilliams, MMC
Village Clerk
Hugh Dunkley, CPA, CGFO
Finance Director
Jim Trube
Fire Chief
Gus Medina
Police Chief
Merlene Reid, Ed.D., SPHR
Human Resources Director
NZ Consultants, Inc.
Planning and Zoning Director
Jose Rodriguez
Building Director
Greg Corbitt
Parks and Recreation Director
Matthew Hammond, PE
Utilities Director
VILLAGE INDEPENDENT AUDITORS
Marcum LLP
Pagcyik of 496
Agenda Item #2.
FINANCIAL SECTION
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Agenda Item #2.
INDEPENDENT AUDITORS'REPORT
Page 24 of 496
Agenda Item #2. CUM
ACCOUNTANTS 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 maj or 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,
2020, 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 or 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 Village'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 Village'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.
1
MARCUMGROUP
MEMBER
Marcum ALP 525 Okeechobee Boulevard Suite 750 West Palm Beach, Florida 33401 Phone 561.653.7300 Fax 561.653.7301 ■ PWn2!!P&W96
Agenda Item #2.
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, as of September 30,
2020, 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 on pages 4 through 18, the budgetary comparison
schedule, the schedules of changes in the net pension liability (asset) and related ratios, the
schedules of village contributions, the schedules of investment returns, the schedule of changes
in total OPEB liability and related ratios and schedules of proportionate share of the net pension
liability on pages 96 through III 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.
Supplementary and 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.
The combining and individual fund statements and schedules are the responsibility of
management and were derived from and relates 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
2
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Agenda Item #2.
auditing standards generally accepted in the United States of America by us and other auditors.
In our opinion, based on our audit and the procedures performed as described above, 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 it.
Other Reporting Required by Government Auditing standards
In accordance with Government Auditing Standards, we have also issued our report dated
March 31, 2021 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 the Village's internal control
over financial reporting and compliance.
A"Y O&N4k L 1, �
West Palm Beach, Florida
March 31, 2021
3
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Agenda Item #2.
MANAGEMENT'S DISCUSSION AND ANALYSIS
(MD&A)
Page 28 of 496
Agenda Item #2.
Management's Discussion and Analysis 2020
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
301 2020. 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 iv of this report.
Financial Hi2hli2hts
• 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 $35,114,546. Of total net
position, 24.7% ($8,678,044) 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. Net position for
governmental activities changed by $28,583. The business -type activities net position increased by
$481,531 due mainly to increase in water rates.
• At the close of the current fiscal year, the Village of Tequesta's governmental funds reported a
change in combined fund balances of $159,958.
• 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 $2,682,965.
• Total deferred outflows of resources increased by $513,453 primarily as a result of changes in
assumptions as well as net differences between projected and actual earnings for the Fire Pension
Plan.
• Other liabilities decreased by $622,711 from the previous year due primarily to employer pension
contributions payable to the Police Pension Plan at the previous year-end.
• The Village did not expend $750,000 or more in federal awards or state financial assistance in the
fiscal year ended September 30, 2020 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.
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Agenda Item #2.
Management's Discussion and Analysis 2020
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.
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 cash flows. 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 five 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 balances for the General Fund which is considered a major fund. Data from the other
four 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.
Page 30 of 496
Agenda Item #2.
Management's Discussion and Analysis 2020
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.
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 nonmaj or 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 30-95 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 (asset) and related ratios, contributions and pension investment returns.
Required supplementary information can be found on pages 96-111 of this report.
The combining and individual fund statements and schedules 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 112-121 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
$35,114,546 at the close of the 2020 fiscal year. Net Position in governmental activities recorded an increase
of 0.21 %. The Village's business -type activities recorded a 2.30% increase in total net position. The majority
of this change was due to a change of current and other assets by $(1,214,745). Other liabilities also
decreased by $622,711, as well as an increase of $513,453 in deferred outflows of resources and a decrease
of $387,497 of deferred inflows of resources related to pensions. As noted previously, the decrease in Other
Page 31 of 496
Agenda Item #2.
Management's Discussion and Analysis 2020
liabilities was due mainly to a decrease in employer pension contributions payable to the Police Pension Plan
at the end of the prior year.
Current and other assets
Capital assets, net
Total assets
Total deferred outflows of
resources
Noncurrent liabilities
Other liabilities
Total liabilities
Total deferred inflows of resources
Net position
Net investment in
capital assets
Restricted
Infrastructure
Debt Service
Building
Law Enforcement
Unrestricted
Total net position
$ 6,697,013
$ 7,310,056
$ 7,978,407
$ 8,580,109
$ 14,675,420
$ 15,890,165
11,564,350
11,746,340
17,423,098
16,968,979
28,987,448
28,715,319
18,261,363
l%0561396
25,401,505
251549,088
43021868
4405,484
2,301,042
1,838,104
562,687
512,172
2,863,729
2,350,276
4,350,233
3,957,976
3,626,914
3,948,240
7,977,147
7,906,216
1,209,304
1,602,326
708,784
938,473
1,918,088
2,540,799
5,559,537
5,560,302
4,335,698
4,886,713
9,895,235
10,447,015
1,349,489 1,709,402 167,327 194,911 1,516,816 1,904,313
10,473,238 10,4701562 14,166,351 131012,584 241639,589 23,483,146
240,480
4221754
2401480
422,754
420,583
411,570 397,997
818,580
411,570
652,877
1,151,130
652,877
1,151,130
84,976
81,991
84,976
81,991
1,781,225
1,086,789 6,896,819 7,967,052
8,678,044
9,053,841
$ 13,653,379
$ 13,624,796 $ 21,461,167 $ 20,979,636
$ 35,114,546
$ 34,604,432
The largest portion of the Village's total net position (70.2%) represents investments in capital assets (e.g.,
land, buildings, machinery and equipment), less depreciation and 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 (5. 1 %) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of $8,678,044 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.
Page 32 of 496
Agenda Item #2.
Management's Discussion and Analysis 2020
I'Macre ofTequesta
Components of Netpositio8
Page 33 of 496
Agenda Item #2.
Management's Discussion and Analysis
2020
Village of Tequesta's Changes in Net Position
Revenues:
Program Revenues:
Charges for Services
$ 2,729,630
$ 219271244
$ 7,290,781
$ 7,090,985
$ 1010201411
$ 10,018,229
Operating Grants & Contributions
113,992
33,737
-
-
1131992
331737
General Revenues:
Ad valorem Taxes
7,497,093
600,483
-
-
7,497,093
600,483
Other Taxes
1,711,817
2,222,910
-
-
1,711,817
2,222,910
Franchise fees on gross receipts
44702
467,670
-
-
44702
467,670
Unrestricted intergovernmental
8071)939
861,647
-
-
807,939
8611647
Unrestricted investment earnings
5402
133,769
59,333
147,356
1131935
281,125
Gain on sale of capital assets
21,976
241597
-
21222
211976
26,819
Other Miscellaneous
19,996
279131
46,014
375290
669010
641421
Total Revenues
13,404,727
1314999188
71396,128
7,277,853
2018009855
20,7771041
Expenses:
General government
2,353,750
214119174
-
-
213535750
2,4111174
Public safety
806,935
814551155
-
-
818061935
8,4551155
Transportation
1,496,229
1,436,674
-
-
1,496,229
1,436,674
Leisure Services
675,172
7719783
-
-
6751172
7711783
Interest expense/other fiscal charges
44,058
7103
14600
179,008
190,858
2501811
Water utility services
-
-
5,817,402
4,900,236
5,817,402
4,900,236
Stormwater services
-
-
453,776
485,566
453,776
485,566
Refuse & recycling services
-
-
496,619
4801)268
4961619
4801268
Total Expenses
1313765144
1311465589
619145597
6,0455078
2012905741
19,1911667
Increase in net position
28,583
352,599
481,531
1,232,775
5101114
1,585,374
Net position - beginning
13,624,796
13,2721197
20,979,636
19,746,861
34041432
33,019,058
Net position - ending $ 13,653,379 $ 1316241796 $ 2114611167 $ 20,979,636 $ 3511141546 $ 34041432
For fiscal year ended September 30, 2020, the Village of Tequesta's overall net position increased from the
prior fiscal year. While revenues decreased slightly in the governmental activities and increased in the
business -type activities, combined entitywide revenues exceeded expenses for fiscal year ended September
30, 2020 by $510,114. Revenues increased in business -type activities due mainly to an increase in water
rates.
Governmental Activities — Expenses and Program/General Revenues
Governmental activities. Overall revenue from governmental activities decreased slightly from the prior
year due to the net effects of an increase in property tax revenue, which was largely offset by decreases in
permit fees and insurance premium tax funds received from the State of Florida for the Police Pension Plan.
The increase in property tax revenue was primarily due to increases in property values, while the decrease in
permit fees was mainly attributable to the effects of the COVID-19 pandemic. These increases allowed for
an overall increase in net position of $28,583.
Page 34 of 496
Agenda Item #2.
Management's Discussion and Analysis
2020
Expenses and Pros aiu elier.-A Rex-eatie- ��-et������t�L _���i��i�i��
iij Thotisaad
ener al 0 ov i amT on ad on
■ R eveuue s _ v_ pet -,,se S
e I -::Lae �htere st on L -
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 $10,532,522, a 3.41 % increase
from the prior period. The largest increase in net cost was from the function of public safety due to an
increase in expenditures for salary increases in accordance with collective bargaining agreements; an increase
in fire pension contributions as well as increases in expenses related to the COVID-19 pandemic. As shown
on the Statement of Activities, the functions directly benefiting from the programs generated revenue of
$2,843,622 with $10,561,105 financed through general revenues.
Pam 35 of 496
Agenda Item #2.
Management's Discussion and Analysis 2020
The following is a comparison of revenues by source for governmental activities for fiscal year 2020 and
2019.
e ve a ues hv. S uurc e- Gore r n rn a n to L Ac th-itie s-
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.Syr
Business -type Activities. The Village of Tequesta's business -type activities reported operating revenues
exceeding expenses by $376,184. Non -operating revenues were $105,347. This resulted in an increase in net
position of $481,531 from the prior year.
Pack 36 of 496
Agenda Item #2.
Management's Discussion and Analysis
2020
S 7,000
�Fr,
J — L` L' L•
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T o L i l Re ven ti es.-T—x j)en ses - B ti sin ess-- Ty1) e _ c ( ixzt ies
in Thoti-si-incls
j C. M%
FL etuse & R e L L11fzz
Ex pense
As shown in the chart below, revenues from charges for services reported in business -type activities
increased $199,796 from the prior year. Increased water rates in the water Utility resulted in increased
revenues of 4.7% or $196,815 from the prior year. The Stormwater Utility reported increases in revenues of
0.4% and Refuse and Recycling revenues remained fairly constant. Non -operating income includes
investment earnings which decreased by 43.4%, as well as miscellaneous revenue from payments for the
construction portion of the Tropic Vista water extension.
S71.GOO
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Re ven ti es by o urc e - B ti sin ess- Ty-) e _ c t iilt ies
is Thotis,-iads
91
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Chu ge 5 f0f S eni sae 5 m-op efating
Pack 37 of 496
Agenda Item #2.
Management's Discussion and Analysis 2020
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 be used 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, 2020 the Village of Tequesta's governmental funds reported total combined fund balances
of $4,510,299. $11884,304 (42%) of the combined governmental fund balances is unassigned and is available
for spending at the Village's discretion. Approximately 20.7% or $933,102 is assigned or committed, with
the largest portion committed to hurricane/disaster emergency. Approximately $1.4 million is restricted for a
particular purpose (i.e. debt service, Law Enforcement Trust funds, etc.). $293,977 is in nonspendable form
(i.e. inventories, prepaid items, etc.). Total combined fund balances have increased 3.68% from the prior
year.
Go,%-ernmental Funds -
Components of Fore Balance
Septem.her 30, 2020 and 2019
2019
2020
■ Committed
■Nonspendable
n Restricted
■ Assigned
■ Unassigned
Pace 38 of 496
Agenda Item #2.
Management's Discussion and Analysis 2020
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 $3,394,469, a decrease of $275,960 from the prior year. Unassigned fund balance of
$1,884,304, increased by 27% 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 15% of fiscal year 2020 General Fund expenditures and
total fund balance represents approximately 28% of total expenditures. The Village of Tequesta adopted a
policy to keep unassigned fund balance at a minimum of two months (17%) of expenditures.
Generaffund
Coin j)oaent.s of Fund Ba[aace
e1teiuber 30, 2Oand2019
■ C onimitte d
■ ssi gie d
Umssigned
Pac39 of 496
Agenda Item #2.
Management's Discussion and Analysis
2020
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
Ad valorem taxes
$ 7,497,093
57.7%
$ 6961610
10.2%
$ 6,800,483
Other taxes
1,711,817
13.2%
(511,093)
(23.0)%
212221910
Charges for services
1,387,467
10.7%
1111300
8.7%
1,276,167
Intergovernmental
815,868
6.3%
(53,724)
(6.2)%
869,592
Intragovernmental
725,436
5.6%
281836
4.1 %
6961600
Franchise fees
44702
3.4%
(19,988)
(4.3)%
4671670
Licenses and permits
680
-%
(652,817)
(99.9)%
6531497
Rents and Royalties
218,931
1.7%
51441
2.5%
213,490
Fines and forfeitures
111708
0.1%
(75,782)
(86.6)%
871490
Misc. grants and contributions
121,739
0.9%
691982
135.2%
51,757
Investment earnings
48,065
0.4%
(85,130)
(63.9)%
133,195
Total Revenue
$ 12,986,486
100%
$ (486,365)
(3.6)%
$ 13,472,851
As noted in the table above, total General Fund revenues decreased by $486,365 ((3.6)%). The largest
changes were due to: 1) increased ad valorem tax revenue resulting from increased property values; 2)
decreased "other taxes" as a result of decreased insurance premium tax funds received from the state due to
re -opening of the Police Pension Plan during the prior fiscal year; and (3) decreased licenses and permits due
to the creation of a new Building Fund, a non-maj or Special Revenue fund.
Expenditures in the General Fund are shown in the following schedule:
Public Safety $
713855605
60.2%
$ (1,044,218)
(12.4)%
$ 81429,823
General
government
2,2071621
18.0%
(68,279)
(3.0)%
2,275,900
Transportation
1,309,050
10.7%
76,825
6.2%
1,232,225
Leisure services
603,268
4.9%
(47,381)
(7.3)%
650,649
Debt service
456,118
3.7%
(11 ,54 1)
(2.5)%
467,659
Capital outlay
298,728
2.4%
421128
16.4%
2561600
Total expenditures $
12,260,390
100%
$ (1,052,466)
(7.9)%
$ 13,3121856
Total General fund expenditures decreased from the prior year by 7.9%. The decrease of $1,044,218 or
12.4% in Public Safety was primarily due to the transfer of the Building Department functions to a new
non-maj or special revenue fund as well as decreased contributions to the Police Pension Fund, since less
insurance premium tax funds were received during the fiscal year from the State of Florida.
Pace 40 of 496
Agenda Item #2.
Management's Discussion and Analysis 2020
Below is a graphical presentation of how the Village expends funds and how they compare to the prior
period.
enar ai Fuod - Exileuditur'es by Bourne
in Thous a ads
r. 0%
L
.:.r. 0%=I _
raw
L_
At September 30, 2020, ending fund balances for the Non -major Special Revenue funds are as follows:
Building Fund - $655,933; Special Law Enforcement Fund - $84,976. The ending fund balances in the
Non -major Capital Projects Fund are as follows: Capital Improvement Fund - $318,655; Capital Projects
Fund - $56,266. Fund balances in these funds are restricted or assigned for capital projects/improvements;
public safety/enforcement of the building code. The Building Fund derives its revenue primarily from
building permit fees, while the Special Law Enforcement Fund receive its revenue from the U.S. Department
of Justice from asset forfeitures/seizures. 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 budgeted expenditures were decreased by $400,535. The Public Safety budget
decreased by $501,477 as a result of a transfer of the Building Department to its own Special Revenue fund.
Proprietary funds: The Village's proprietary funds provide the same type of information found in the
government -wide financial statements, but in more detail.
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
$21,461,167 an increase of $481,531 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.
Pad6 41 of 496
Agenda Item #2.
Management's Discussion and Analysis
2020
Operating Income (Loss)
Change in Net Position
2020
2019
2020
2019
Water $ 6221281
$ 1,288,042
$ 502,833
$ 112561234
Stormwater (21,421)
(54,752)
(13,241)
(31,998)
Refuse and Recycling (81745)
61625
(8,061)
89539
$ 5921115
$ 1,239,915
$ 481,531
$ 1,232,775
Capital Assets and Debt Administration
Capital assets: The Village's capital assets for its governmental and business -type activities total
$28,987,448 (net accumulated depreciation) as of September 30, 2020. The Village acquired $3,206,158 in
assets during the year and disposed of $384,553 during the year.
Additional information on the Village's capital assets can be found in Note 3D, Capital Assets, starting on
page 51 of this report.
Land
$ 634,017
$ 6341017
$ 831335
$ 83,335
$ 7171352
$ 717,352
Construction in progress
98,047
21517
-
1121200
98,047
1,214,597
Buildings
8,0435526
8,0431526
9791512
979,512
910231038
91)023,038
Improvements
2,42406
2,4241606
58,720
58,720
2,483,326
2,483,326
Infrastructure
5,138,363
4,9651348
36,414,112
34,192,913
411552,475
39,158,261
Machinery & Equipment
4,7971293
417301380
2,2001049
11935,101
6,9971342
605,481
Intangibles
274,455
2741455
129,096
1291096
4031551
4031551
Other - K-9
20,549
20,549
-
-
201549
20,549
Total capital assets
211430,856
2110951398
3904,824
381590,757
61,29500
5906,155
Less accumulated depreciation
(9,866,506)
(9,349,058)
(22,441,726)
(21,62 1 ,778)
(32,308,232)
(30,970,836'
Total capital assets, net
$ 11)564,350
$ 1117461340
$ 17,4231098
$ 161968,979
$ 28,9871448
$ 28,715,319
Pack 42 of 496
Agenda Item #2.
Management's Discussion and Analysis 2020
Noncurrent liabilities: At the end of the current fiscal year, the Village had a total of $7,977,147 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 accordance with GASB Statements No's. 68 and 75, the Village recognized a net pension liability (NPL) of
$2,546,737 and a total OPEB liability of $390,250, respectively. The Village is presenting the NPL and
OPEB liability as separate components of the noncurrent liabilities on the face of the financial statements to
present more clearly the Village's long-term pension and other post -employment benefit obligations. A more
detailed explanation can be found in Note 3.K — Noncurrent Liabilities.
Notes payable
$ 712,790
$ 110465986
$ 3,119,112
$ 35507,580
$ 398311902
$ 4,554,566
Capital leases
256,234
2281793
-
-
2561234
228,793
Compensated absences
782,847
656,329
169,177
133,514
9521024
789,843
Total OPEB Liability
295,386
4961276
94,864
148,412
3901250
64408
Noncurrent Liabilities
2,047,257
214281384
3,383,153
31789,506
51430,410
6,217,890
Net Pension Liability
253021976
11529,592
243,761
1585734
21546,737
108,326
Total Noncurrent Liabilities
$ 4,350,233
$ 359571976
$ 3,62615914
$ 359481240
$ 7,9771147
$ 7,906,216
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 2020-2021 fiscal year budget:
• The Village Council's decision to keep the millage rate constant at 6.6290.
• Increase in gross taxable value of properties of 4.2%.
• Projected Cost of Living Adjustment (COLA) increase of 3.85% for Fire Union members; 4.00% for
Police employees; 3.08% for Communications workers of America Union; 3.00% for all other
non -union employees.
• Interest rates have remained low as the Federal Reserve continues to monitor the progress of the
economy amidst the COVID-19 pandemic.
• The CPI remains lower than 3 %
• The U.S. Real Gross Domestic Product decreased by 3.5% during calendar year 2020.
• The Village of Tequesta's proposed water rate increase of 3.5% 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.
Pack 43 of 496
Agenda Item #2.
BASIC FINANCIAL STATEMENTS
Page 44 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF NET POSITION
SEPTEMBER 30, 2020
Business -
Governmental
type
Activities
Activities
Total
Assets
Cash
$ 416461188 $
6,57007 $
111216,195
Investments
24,559
40,596
65,155
Receivables, net
754,879
1,042,957
1,797,836
Inventories
64,580
253,272
317,852
Prepaid items
2291397
71,575
300,972
Net pension asset
9771410
-
977,410
Capital assets not being depreciated
732,064
831)335
8151)399
Capital assets being depreciated, net
105832,286
17,339,763
281172,049
Total Assets
18,261,363
25,401,505
431662,868
Deferred Outflows of Resources
Deferred outflows - pensions
2,286,629
390,494
2,677,123
Deferred outflows - OPEB
14,413
41627
19,040
Deferred charge on refunding
-
167,566
167,566
Total Deferred Outflows of Resources
2,3011042
5621687
203,729
Liabilities
Accounts payable
440,596
581,770
110221366
Accrued liabilities
5911730
86,712
678,442
Customer deposits
-
39,956
39,956
Unearned revenue
172,420
-
172,420
Due to other governments
41558
346
4,904
Noncurrent liabilities:
Due within one year
522,782
412,997
935,779
Due in more than one year
1,229,089
2,875,292
4,104,381
Total OPEB liability
295,386
9404
390,250
Net pension liability
2,302,976
243,761
21546,737
Total Liabilities
5,559,537
4,335,698
91895,235
Deferred Inflows of Resources
Deferred inflows - pensions
1,349,489
1671327
19516,816
Total Deferred Inflows of Resources
1,349,489
167,327
11516,816
Net Position
Net investment in capital assets
10,473,238
14,1661351
241639,589
Restricted:
Infrastructure
240,480
-
240,480
Debt Service
4201583
3971997
8181580
Building
652,877
-
652,877
Law Enforcement
841976
-
84,976
Unrestricted
1,781,225
6,896,819
81678,044
Total Net Position
$ 13,653,379 $
21,461,167 $
35,114,546
The accompanying notes are an integral part of these financial statements.
Pack 45 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Net (Expense) Revenue and
Program Revenues Changes in Net Position
Primary Government
Operating Capital Grants
Charges for Grants and and Governmental Business -type
Functions/Programs
Expenses
Services
Contributions Contributions
Activities
Activities
Total
Primary Government
Governmental Activities
General government
$ 21353,750 $
11150,219 $
- $ - $
(1,203,531) $
- $
(1,203,531)
Public safety
81806,935
1,55209
105,492 8,500
(7,140,934)
-
(7,140,934)
Transportation
11496,229
-
- -
(1,496,229)
-
(1,496,229)
Leisure services
675,172
27,402
- -
(647,770)
-
(647,770)
Interest on long-term debt
44,058
-
- -
(44,058)
-
(44,058)
Total governmental activities
13,376,144
2,729,630
105,492 85500
(10,532,522)
-
(10,532,522)
Business -type Activities
Water
51964,202
61370,552
- -
-
406,350
4061350
Stormwater utility
453,776
4329355
- -
-
(21,421)
(21,421)
Refuse and Recycling
496,619
4875874
- -
-
(8,745)
(8,745)
Total business -type activities
619141597
71290,781
- -
-
376,184
3761184
Total primary government
$ 201290,741 $
1010201411 $
1051)492 $ 85500
(10,532,522)
376,184
(10,156,338)
General Revenues
Ad valorem taxes
Utility taxes
Communication service tax
Insurance premium taxes
Infrustructure surtax
Business taxes
Franchise fees based on gross receipts
Unrestricted intergovernmental revenues
Unrestricted investment earnings
Gain on sale of capital assets
Miscellaneous revenues
Total general revenues
Change in net position
Net Position - Beginning
Net Position - Ending
7,4971093
-
714971093
645,267
-
6451267
302,967
-
302,967
263,315
-
263,315
404,870
-
404,870
95,398
-
959398
447,682
-
4471682
8071939
-
8071939
541602
59,333
1131935
21,976
-
219976
19,996
46,014
661010
10,561,105
1059347
1016661452
28,583
481,531
5101114
$ 131)653,379 $ 21,461,167 $ 3511141546
The accompanying notes are an integral part of these financial statements.
za w 97-k,,46 of 491,
tv I �;; F
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
BALANCESHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2020
Other
Total
General
Governmental
Governmental
Fund
Funds
Funds
Assets
Cash
$
314871221
$
111581967
$
4,646,188
Investments
24,559
-
24,559
Receivables, net
754,874
5
754,879
Inventories
64,379
201
64,580
Prepaid items
226,542
21855
2291397
Total Assets
$
4,5571575
$
111621028
$
5171903
Liabilities
Accounts payable
$
4131069
$
27,527
$
4401596
Accrued liabilities
5761429
15,301
591,730
Unearned revenue
172,420
-
172,420
Due to other governments
1,18 8
3, 3 7 0
4,558
Total Liabilities
1,1631106
46,198
11209,304
Fund Balances
Nonspendable:
Inventories
641379
201
64,580
Prepaid items
2261542
2,855
229,397
Restricted:
Infrastructure
-
240,480
240,480
Debt Service
4201583
-
420,583
Building
-
652,877
652,877
Law Enforcement
-
841976
84,976
Committed to:
Disaster Reserve
5001000
-
5001000
Capital Projects
-
46,485
46,485
Assigned to:
Capital Projects
-
41,393
41,393
Subsequent years budget
29801
46,563
345,224
Unassigned:
General Fund
104,304
-
1,884,304
Total Fund Balances
3,394,469
1,115,830
4,510,299
Total Liabilities and Fund Balances
$
4,5571575
$
11162,028
$
5171903
The accompanying notes are an integral part of these financial statements.
Pack 47 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2020
Amounts reported for governmental activities in the statement of net position are
different because:
Total Fund Balances - Governmental Funds $ 4,510,299
Net pension asset is not considered to represent a financial asset in
the governmental funds. 977,410
Net capital assets used in the governmental activities are not financial resources
and, therefore are not reported in the governmental funds. 111564,350
Deferred outflows of resources related to pensions and OPEB transactions not reported
in the governmental funds. 2,301,042
Deferred inflows of resources related to pension transactions not recognized
in the governmental funds. (I,349,489)
Long-term liabilities, including notes payable, are not due and payable in the
current period and, therefore, are not reported in the governmental funds. (1,7511871)
Total OPEB liability is not due and payable in the current period and, therefore,
not reported in the governmental funds. (295,386)
Net pension liability is not due and payable in the current period and,
therefore, not reported in the funds. (21302,976)
Net Position of Governmental Activities $ 1316531379
The accompanying notes are an integral part of thesefinancial statements.
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Other Total
General Governmental Governmental
Revenues
Ad valorem taxes
Other taxes
Charges for services
Intergovernmental
Intragovernmental
Licenses and permits
Franchise fees
Rents and royalties
Miscellaneous
Fines and forfeitures
Grants, contributions and donations
Investment earnings
Total Revenues
Expenditures
Current:
General government
Public safety
Transportation
Leisure services
Capital outlay
Debt service:
Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Proceeds on sale of capital assets
Issuance of debt
Total other financing sources (uses)
Total other financing sources (uses)
Net change in fund balances
Fund Balances - Beginning
Fund Balances - Ending
$ 7,4971093 $
- $
714971093
1,711,817
-
11711,817
1,3871467
215
1138702
815,868
-
815,868
7251436
-
725,436
680
3851193
3851873
4471682
-
4471682
218,931
-
2181931
191941
55
191996
111708
-
11,708
101,798
4,265
1061063
481065
6,537
5402
12,9861486
396,265
1313821751
2,2071621
-
21207,621
7,3 85,605
6681401
8,05406
1,3091050
-
11309,050
603,268
-
6031268
2981728
421,283
720,011
4121060
-
412,060
44,05 8
-
44,05 8
121)260,390
1,089,684
131350,074
7261096
(693,419)
32,677
1951378
1,3241715
11520,093
(1,3241715)
(195,378)
(15520,093)
211976
-
21,976
105,305
-
1051305
(1,0021056)
1,129,337
127,281
(1,0021056)
11129,337
127,281
(275,960)
4351918
1591958
316701429
6791912
4,3501341
$ 3,3941469 $
1,115,830 $
41510,299
The accompanying notes are an integral part of these financial statements.
Pace 49 of 496
Agenda Item #2.
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, 2020
Amounts reported for governmental activities in the statement of activities
are different because:
Net change in fund balances - total governmental funds $ 159,958
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/amortization in the current period.
The details of the difference are as follows:
Capital outlay 720,011
Depreciation/amortization expense (899,484) (179,473)
The effect of transactions involvin capital assets as follows:
Disposition of capital asset (21516) (21516)
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.
Proceeds for capital lease (105,305)
Payment on notes payable 334,196
Payment on capital lease 779864 3061755
Some revenues and expenses reported in the statement of activities do not
require the use of current financial resources and, therefore, are not
reported in governmental funds:
The details of the difference are as follows:
Compensated absences (126,518)
Total OPEB liability 18040
Net pension liability (318,263) (256,141)
Change in net position of governmental activities $ 28,583
The accompanying notes are an integral part of thesefinancial statements.
Pa9ff 50 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2020
Business -type Activities
Nonmaj or
Water Refuse &
Fund Stormwater Recycling Total
Assets
Current Assets:
Cash
$ 51412,380 $
1,001,433 $
156,194
$ 61570,007
Investments
40,596
-
-
40,596
Receivables, net
1,0361918
21990
3,049
1,042,957
Inventories
252,814
458
-
253,272
Prepaid items
70,874
701
-
71,575
Total Current Assets
61813,582
1,005,582
159,243
7,978,407
Non -current Assets:
Capital assets not being depreciated
831335
-
-
83,335
Capital assets being depreciated, net
151992,545
1,347,218
-
17,339,763
Total Non -Current Assets
16107500
1,347,218
-
17,423,098
Total Assets
2218891462
2,3521800
159,243
251401,505
Deferred Outflows of Resources
Deferred outflows - pensions
366,951
231543
-
390,494
Deferred outflows - OPEB
4,283
344
-
4,627
Deferred charge on refunding
1671566
-
-
1671566
Total Deferred Outflows of Resources
538,800
231887
-
562,687
Liabilities
Current Liabilities:
Accounts payable
$ 22204 $
318,420 $
4006
$ 581,770
Accrued liabilities
821300
41412
-
86,712
Customer deposits
39,956
-
-
39,956
Compensated absences
1500
-
-
15,000
Due to other governments
346
-
-
346
Notes payable
397,997
-
-
397,997
Net pension liability
315
-
-
315
Total Current Liabilities
7581598
3221832
409666
111229096
Noncurrent Liabilities:
Compensated absences
1531164
11013
-
154,177
Notes payable
2,721,115
-
-
2,721,115
Net pension liability
242,571
875
-
243,446
Total OPEB liability
8706
7,058
-
9404
Total Noncurrent Liabilities
31204,656
81946
-
3521302
Total Liabilities
3,963,254
331,778
4006
4,335,698
Deferred Inflows of Resources
Deferred inflows - pensions
156,780
101547
-
167,327
Total Deferred Inflows of Resources
1569780
101547
-
1671327
Net Position
Net investment in capital assets
1311121193
1,0541158
-
14,166,351
Restricted:
Debt Service
3975997
-
-
397,997
Unrestricted
59798,038
980,204
118,577
6,896,819
Total Net Position
$ 191308,228 $
2,0341362 $
118,577
$ 21,461,167
The accompanyingnotes are an inte ral art o these financial statemPAC,74 51 of 496
g p f .%
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Operating Revenues
Charges for services:
Metered water sale
Tap fees
Stormwater fees
Refuse and recycling fees
Total Operating Revenues
Operating Expenses
Cost of sales and services:
Plant production
Distribution
Stormwater
Purchased services
Management services
Administration
Depreciation/amortization
Total Operating Expenses
Operating Income (Loss)
Non -Operating Revenues (Expenses)
Miscellaneous revenue
Investment earnings
Interest expense
Legal settlement
Total Non -Operating Revenues (Expenses)
Change in Net Position
Net Position - Beginning
Net Position - Ending
Business -type Activities
Nonmaj or
Water Refuse &
Fund Stormwater Recycling Total
$ 61288,962 $
- $
- $
6,288,962
81,131
-
-
81,131
-
4321355
-
432,355
-
-
4871874
487,874
613701093
4321355
487,874
71290,322
1187609
-
-
1187609
15719,865
-
-
1,719,865
-
3191181
-
319,181
-
-
488,171
488,171
598,596
141292
8,448
621,336
853,617
-
-
853,617
699,645
120,303
-
819,948
517471812
453,776
496,619
6,698,207
6221281
(21,421)
(8,745)
592,115
46,473
-
-
46,473
501469
81180
684
59,333
(146,800)
-
-
(146,800)
(69,590)
-
-
(69,590)
(119,448)
81180
684
(110,584)
502,833
(13,241)
(8,061)
4811531
1818059395
210471603
126,638
209979,636
$ 19,3089228 $
210341362 $
1181577 $
219461,167
The accompanying notes are an integral part of these financial statements.
Pao 52 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Business -type Activities
Water
Storm Water
Refuse
Fund
Fund
Non Major Fund
Totals
Cash Flows from Operating Activities
Cash received from customers, governments and other funds
$ 6,190,293
$ 433,017
$ 4881066
$ 7,111,376
Cash paid to suppliers
(3,632,305)
(174,241)
(455,953)
(4,262,499)
Cash paid to employees
(2,0641309)
(126,570)
-
(2,190,879)
Net Cash Provided by Operating Activities
493,679
1321206
32,113
657,998
Cash Flows from Capital and Related Financing Activities
Acquisition and construction of capital assets (834,479) (182,393)
Principal payments on long-term debt (388,468) -
Interest paid (146,800) -
Net Cash Used in Capital and Related Financing Activities (1,369,747) (182,393)
Cash Flows from Investing Activities
Interest and micsellaneous income
Sale of investments
Net Cash Provided by Investing Activities
Net Increase in Cash and Cash Equivalents
Cash and Cash Equivalents - Beginning
Cash and Cash Equivalents - Ending
Adjustments to Reconcile Operating Income to Net
Cash Provided by Operating Activities
Operating income (loss)
Adjustments to reconcile operating Income to net
cash provided by operating activities:
Depreciation/Amortization
Changes in operating assets, liabilities and deferred inflows/
outflows of resources:
(Increase) decrease in:
Accounts receivable
Inventories
Deferred outflow of resources
Prepaid items
Increase (decrease) in:
Accounts payable
Accrued liabilities
Customer deposits
Compensated absences
Deferred inflows of resources
Net pension liability
Due to other governments
Total OPEB liability
Net Cash Provided by Operating Activities
27,352 81180
ncc -nA nI I Inn
- (1,016,872)
- (388,468)
- (146,800)
(1,552,140)
684 36,216
701094 6,236,797
5,282,946 9191289 70,778 6,2731013
41406,878 869,102 102,891 5,3781871
11005,502 1321331 531303 111911136
m A 1 n nn1'% m I nnI Ann m I Z"i 7 n A rt, �_ t-�1-11 nn-r
$ 622,281 $ (21,421) $
6991645 120,303
(81745) $ 592,115
- 819,948
(183,708) 662
192 (182,854)
(71,319) 74
- (71,245)
(46,577) (3,938)
- (50,515)
(2,764) 639
- (2,125)
(577,589) 39,810
6,260
50
3,908
-
36,824
(1,161)
(28,484)
900
84,381
646
11
-
(49,190)
(41358) _
$ 493,679 $
1321206 $
405666 (497,113)
- 6,310
- 3,908
- 35,663
- (27,584)
- 85,027
- 11
- (53,548)
321113 $ 657,998
The accompanying notes are an integral part of these financial statements.
Pack 53 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2020
Assets
Cash and cash equivalents
Investments
Equities
Fixed Income
Real Estate Fund
Total investments
Accounts receivable
Contributions receivable
Accrued interest receivable
Prepaid items
Total Assets
Liabilities
Accounts payable
Due to broker
Total Liabilities
Net Position Restricted for Pension Benefits
Pension
Trust
Funds
$ 338,597
1755921785
6,147N4
1,917,373
25,658,082
288,566
71J34
22,316
35,331
26,414M26
33J22
21, 622
54,744
The accompanying notes are an integral part of these statement.
Pack 54 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Additions
Contributions:
Pension
Trust
State of Florida $ 263,314
Employer 834,359
Employee 352,485
Total Contributions 1,45 0,15 8
Investment Earnings
Net appreciation in fair value of investments 11622,813
Gain on sale of investments 1391121
Interest and dividends 442.227
-I- - .,
Less investment expenses (93,107)
Net Investment Earnings 2,111,054
Miscellaneous 2.354
Total Additions 3,563,566
Deductions
Benefits paid 4271313
Refund of contributions 104,053
Administrative expenses 106,401
Total Deductions 637,767
Change in Net Position 21925,799
Net Position Restricted for Pension Benefits
Beginning of year 231433,483
End of year $ 2613591282
The accompanying notes are an integral part of these statement.
Pack 55 of 496
Agenda Item #2.
NOTES TO BASIC FINANCIAL STATEMENTS
Page 56 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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, or has operational responsibility.
The Village has no component units to report.
The financial statements of the Village have been prepared in conformity with accounting
principles generally accepted in the United States of America (U.S. GAAP) as applied to
governmental units. The Governmental Accounting Standards Board (GASB) is the accepted
standard -setting body for establishing governmental accounting and financial reporting principles.
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 -type 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.
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
Page 57 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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 nonmaj or 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 nonmaj or 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' (Police and
Fire) and the General Employees' Pension Trust Funds, which accumulate resources for pension
benefit payments to qualified employees.
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
Page 58 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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.
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.
Page 59 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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,
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.
Page 60 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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 215 and 218 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. Florida PRIME is reported at
amortized cost and is exempt from the GASB No. 72 fair value hierarchy disclosures.
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 $1,000 or more and an estimated useful life in excess of one year. For
infrastructure and intangible assets the same estimated minimum useful life is used (in excess of
one year), 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.
Page 61 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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 three items that qualify for reporting in this
category. They are; 1) Deferred outflows related to pensions; 2) Deferred outflows related to
OPEB; and 3) 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
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.
Page 62 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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 constraint 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 cannot 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.
The General Fund is the only fund that reports a positive unassigned fund balance amount. The
other governmental funds may report negative unassigned fund balance if that fund's expenditures
incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to
those purposes.
Page 63 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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 2020 was 6.6290 mills. Tax bills are
mailed out November 1 st 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.
Page 64 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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.
I. 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.
J. Implementation of new GASB Statement
The Village of Tequesta implemented GASB Statement No. 83, Certain Asset Retirement
Obligations, during fiscal year 2020. This Statement establishes criteria for determining the timing
and pattern of recognition of a liability and a corresponding deferred outflow of resources for
certain asset retirement obligations (ARO's). An ARO is a legally enforceable liability associated
with the retirement of a tangible capital asset. The implementation of this pronouncement did not
result in a financial impact to the Village.
Page 65 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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 $11,564,350 as explained in
the following detail (additional details shown in Note 3.D.):
Capital assets not being depreciated:
Land
$ 6341017
Construction in progress
98,047
Capital assets being depreciated:
Buildings, net
4,713,986
Improvements other than buildings, net
876,199
Infrastructure, net
3,946,468
Machinery and equipment, net
1,250,551
Intangibles, net
311872
Other K-9, net
131210
Net Adjustment to Increase Fund Balance -
Total Governmental Funds to Arrive at
Net Position - Governmental Activities $ 11,564,350
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 $1, 751, 871 difference are as follows:
Note payable $ 712,790
Capital leases 2561234
Compensated absences 782,847
Net Adjustment to Reduce Fund Balance -
Total Governmental Funds to Arrive at
Net Position — Governmental Activities $ 1,751,871
z 66 of 49i
t,
•
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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, 2020, 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 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 Statement No. 79, Certain External Investment Pool and Pool participants establishes
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.
Page 67 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
As of September 30, 2020, the Village had the following demand deposits and investments:
Weighted Credit
Average Rating Percent
Deposits and Investments Reported Value Maturity (S&P) Distribution
SBA -Florida PRIME $ 65,155 48 days AAAm 0.58%
Demand deposits
Total Deposits and Investments
11,216,195 99.42%
$ 11,281,350
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 or 5% or more of total investments. At September 30, 2020, 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.
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."
Page 68 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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, 2020, there were no redemption fees, 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, 2020. The
investments of the Public Safety 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.
Debt and equity securities classified as Level 1 of the fair value hierarchy are valued using quoted
prices at September 30, 2020 (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 bond
mutual 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). It is valued using a matrix pricing technique.
Matrix pricing values securities based on the securities relationship to benchmark quoted prices.
This includes U.S. Treasury bonds and notes, U.S. agencies, mortgage backed securities, municipal
bonds and corporate obligations, including asset backed securities.
Page 69 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
The Real Estate Fund -this fund enters into real estate partnerships with various joint venture
partners. The portfolio is valued quarterly at net asset value (NAV). Investments valued at NAV are
excluded from the fair value hierarchy because the valuation is not based on actual market inputs
but rather is quantified using the fund's reported NAV. The fund had no outstanding commitments.
As of September 30, 2020 the Public Safety Pension Trust Fund has the following recurring fair
value investments:
Quoted Prices in Significant
Active Markets for Significant Unobservable
Identical Assets Observable Inputs Inputs
9/30/2020 (Level 1) (Level 2) (Level 3)
Equities
Mutual funds equities $
1217491980 $
1217491980
Total equity
1217491980
1217491980
Fixed income
Corporate bonds
211061836
2,106,836
U.S. Agencies
112571485
1,257,485
U.S. Government bonds
3811991
381,991
Bond mutual fund
7191941
7191941
Total fixed income
41466,253
7191941
3,746,312
Total investments at fair value
1712161233 $
13,469,921 $
317461312 $ -
Investment at net asset value Redemption Redemption Notice
(NAV) Frequency Period
Real Estate Fund 113871119 Quarterly 30 days
Total investments $ 18031352
Page 70 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
As of September 30, 2020, the Village of Tequesta's Public Safety Pension Trust Fund had the
following demand deposits and investments:
Cash
Short -Term Money Market Fund
Total Cash and Cash
Equivalents
Equities
Mutual Funds
Total Equities
Fixed Income
Corporate Bonds:
Bonds
Bonds
U.S. Government Bonds
U.S. Agencies
Bond Mutual Fund
Total Fixed Income
Real Estate Fund
Total investments
Total cash and investments
Weighted
Credit
Reported Average
Rating Percent
Percent of
Value Maturity
(Moody) Distribution
Net Position
$ 231419
0.12%
-%
273.500
1.45%
1.42%
296,919
1 1? Tan aQn
121, /4!),v SU
67.46% 66.30%
8.08 years
8071058 A2
4.27%
4.20%
1,2991778 A3
6.88%
6.76%
3811991
2.02%
1.99%
112571485 2.88 years Aaa
6.65%
6.54%
719,941
3.81 %
3.74%
4,466,253
1,3871119
7.34%
7.21%
Q tin1z IsI
1 Z51VUU12, / 1
100.00% 98.28%
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 obi ectives require investment maturities to provide sufficient
liquidity to pay obligations as they become due.
• At September 30, 2020, 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 P I.
Page 71 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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 plan 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, 2020, 18.77% of the fair value of the fund was invested in international
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, 2020 and 2019, 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 8.30% and 2.93%. 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.
Pag-"e`� 72 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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, 2020 and
2019 are as follows:
Long -Term Expected Real
Target
Rate of Return
Asset Class
Allocation
Range
2020 2019
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, 2020
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 as 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, 2020 (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.
Page 73 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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). It is valued using a matrix pricing technique.
Matrix pricing values securities based on the securities relationship to benchmark quoted prices.
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. The portfolio is valued quarterly at net asset value. Investments valued at NAV are
excluded from the fair value hierarchy because the valuation is not based on actual market inputs
but rather is quantified using the fund's reported NAV. The fund had no outstanding commitments.
As of September 30, 2020 the General Employees' Pension Trust Fund has the following recurring
fair value investments:
Quoted Prices in
Significant
Significant
Active Markets for
Observable
Unobservable
Identical Assets
Inputs
Inputs
9/3 0/20
(Level 1)
(Level 2)
(Level 3 )
Equities
Common stocks $
1,916,672
$ 11916,672
$ -
Mutual funds equities
219261133
219261133
Total equities
418421805
418421805
Fixed income
Corporate bonds
4791666
479,666
U.S. Government bonds
2761005
27605
U.S. Agences
2411079
241M79
Bond mutual fund
264,297
2641297
Exchange traded funds
4201624
420,624
Total fixed income
116811671
684,921
9961750
Total investments at fair value
615241476
$ 51527,726
$ 9969750
$ -
Investment at net asset value Redemption Redemption
(NAV) Frequency Notice Period
Real Estate Fund 5301254 Quarterly 30 days
Total investments $ 7,0541730
Page 74 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
At September 30, 2020, the Village of Tequesta's General Employees' Pension Trust Fund had the
following demand deposits and investments:
Cash
Short Term Money Market Fund
Total Cash and Cash equivalents
Equities
Common stocks
Mutual funds
Total Equities
Fixed Income
Corporate Bonds:
Bonds
Bonds
Bonds
Bonds
Bonds
Bonds
ETF - Exchange Traded Fund
U.S. Government Bonds
U.S. Agencies
Mutual Fund
Total Fixed Income
Real Estate Fund
Total Investments
Total Cash and Investments
Weighted Credit Percent
Reported Average Rating Percent of Net
Value Maturity (Moody) Distribution Position
$ 15,178
0.21%
0.21%
261500
0.37%
0.37%
41,678
1,916,672
27.01%
26.88%
21926,133
41.23%
41.04%
4,842,805
4.15 years
25,041
Al
0.35%
0.35%
551964
A2
0.79%
0.79%
2211303
A3
3.12%
3.10%
1371451
Baal
1.94%
1.93%
26,517
Baa3
0.37%
0.37%
131390
N/A
0.19%
0.19%
4201624
5.93%
5.90%
27605
3.89%
3.87%
2411079 5.56 years
Aaa
3.40%
3.38%
2641297
3.72%
3.71 %
11681,671
5301254
7.47%
7.44%
710541730
$ 710961408
100.00%
99.54%
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 obi ectives require investment maturities to provide sufficient
liquidity to pay obligations as they become due.
• At September 30, 2020, the weighted average maturity in years for each investment type is
included in the preceding table and ranges from 4.15 to 5.56 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;
• 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.
Page 75 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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 plan 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, 2020, 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, 20, 18.06% of the fair value of the fund was invested in international
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, 2020 and 2019, the overall annual money -weighted rate of
return (long-term expected real rate of return) on the General Employees' Pension Plan investments
was 8.83% and 3.36% 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.
Pa� 76 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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, 2020 and
2019 are as follows:
Long -Term Expected Real
Target
Rate of Return
Asset Class
Allocation
Range
2020 2019
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 nonmaj or governmental and enterprise
funds including the applicable allowances for uncollectible accounts:
Storm- Nonmajor
General Water water Funds Total
Accounts
$ 2641879
$ 11039,314 $ - $
- $ 11304,193
Intergovernmental
412,327
483 21990
3,054 418,854
Other taxes
94,948
- -
- 94,948
Gross receivables
7721154
11039,797 21990
31054 11817,995
Less: allowance for
uncollectibles
(17,280)
(21879) -
- (20,159)
Net Total Receivables $ 754,874 $ 11036,918 $ 21990 $ 31054 $ 11797,836
Page 77 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
D. Capital Assets
Capital assets activity for the fiscal year ended September 30, 2020, was as follows:
Beginning Ending
Balance Additions Deductions Balance
Governmental Activities
Capital assets not being depreciated/amortized:
Land $ 634,017 $ - $ - $ 634,017
Construction -in -progress 2,517 981047 (2,517) 981047
Total Capital Assets Not Being Depreciated/Amortized
636,534
98,047 (2,517)
732,064
Capital assets being depreciated/amortized:
Buildings
8,043,526
- -
8,043,526
Improvements other than buildings
2,42406
- -
2142406
Infrastructure
41965,348
1739015 -
59138,363
Machinery and equipment
4,730,380
4485949 (382,036)
45797,293
Intangibles
2741455
- -
2749455
Other K-9
20,549
- -
20,549
Total Capital Assets Being Depreciated/Amortized
20,45804
6211964 (382,036)
20,698,792
Less accumulated depreciation/amortization for:
Buildings
(3,128,452)
(201,088)
- (3,329,540)
Improvements other than buildings
(1,462,002)
(86,405)
- (1,548,407)
Infrastructure
(1,065,809)
(126,086)
- (1,191,895)
Machinery and equipment
(3,467,051)
(461,727)
382,036 (3,546,742)
Intangibles
(221,340)
(21,243)
- (242,583)
Other K-9
(4,404)
(2,935)
- (7,339)
Total Accumulated Depreciation/Amortization
(9,349,058)
(899,484)
382,036 (9,866,506)
Total Capital Assets Being Depreciated/Amortized, Net
11,10906
(277,520)
- 101832,286
Governmental Activities Capital Assets, Net
$ 11,746,340
$ (179,473)
$ (2,517) $ 11,564,350
Depreciation/amortization expense was charged to the functions/programs of the governmental
activities of the Village as follows:
Governmental Activities
General government $ 1151402
Public safety 5221952
Transportation 1981211
Leisure services 621919
Total Depreciation/Amortization Expense - Governmental Activities $ 899,484
Page 78 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Beginning Ending
Balance Additions Deductions Balance
Business -type Activities:
Capital assets not being depreciated/amortized:
Land
$ 83,335
$ -
$ - $ 83,335
Construction in progress
1,212,080
-
(I,212,080) -
Total Capital Assets Not Being Depreciated/Amortized
1,295,415
-
(I,212,080) 83,335
Capital assets being depreciated/amortized:
Buildings
979,512
-
- 979,512
Improvements other than buildings
58,720
-
- 581)720
Infrastructure
34,192,913
2,221,199
- 3 6,414,112
Machinery & Equipment
15935,101
2641948
- 21200,049
Intangibles
1291096
-
- 129,096
Total capital assets being depreciated/amortized
37,2951342
214861147
- 39,781,489
Less accumulated depreciation/amortization for:
Buildings
(722,771)
(15,375)
- (738,146)
Improvements other than buildings
(29,361)
(2,348)
- (31,709)
Infrastructure
(19,055,199)
(654,291)
- (19,709,490)
Machinery & Equipment
(I,740,165)
(122,114)
- (I,862,279)
Intangibles
(74,282)
(25, 820)
- (100,102)
Total Accumulated Depreciation/Amortization
(21,621,778)
(819,948)
- (22,441,726)
Total Capital Assets Being Depreciated/Amortized, Net
1596731564
116669199
- 1713391)763
Business -type Activity Capital Assets, Net $ 16,968,979 $ 116661199 $ (1,212,080) $ 17,423,098
Depreciation/amortization expense charged to the water and stormwater funds of the business -type
activities was $819,948. The depreciation/amortization expense breakdown by activity is as follows:
Water utility $ 6991645
Stormwater 120,303
Total depreciation/amortization expence $ 819,948
Page 79 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
E. Accrued Liabilities
Accrued liabilities reported by governmental funds at September 30, 2020, were as follows:
Other
Total
General
Governmental
Governmental
Fund
Funds
Funds
Salary and employee benefits
$ 3101371
$ 15,301
$ 3251672
Employer pension State distribution
263,315
-
2631315
Other
2,743
-
2,743
Total Accrued Liabilities
$ 576,429
$ 151301
$ 5919730
F. Pension Obligations
Florida Retirement System (FRS) - a Statewide Local Government Employees' Retirement
System (SLGERS)
General Information. The FRS was established and administered in accordance with Chapter 121,
Florida Statutes, effective December 1, 1970.
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 90001 Tallahassee, Florida 32315-9000 or visiting the website at
ww.dms.myflorida.com/workforce operations/retirement/publications.
Plan Description: The FRS is a cost -sharing multiple -employer qualified 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
Page 80 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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
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.
Page 81 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Contribution rates during the 2019-2020 fiscal year were as follows:
Class
Employee
Employer (1)
Regular
3%
6.54%
Special Risk
3%
23.76%
Special Risk Administrative Support
3%
36.87%
Elected Officers'
Judges
3%
40.28%
Governor, Lt.Governor, Cabinet, Legistrators,
State Attorneys, Public Defenders
3%
54.31 %
Elected County, City Officers'
3%
47.10%
Senior Management Service
3%
23.69%
DROP participants
-
12.94%
Reemployed Retiree
(2)
(2)
Notes: (i) These 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 $58,313 for the fiscal year ended
September 30, 2020. 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 the plan's actuary and reported in the
plan's GASB 67 valuation as of June 30, 2020 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. The net pension liability was measured as of June 30, 2020.
At September 30, 2020, the Village reported a liability of $717,034 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 2019-2020 fiscal year contributions relative to the 2018-2019
fiscal year contributions of all participating members. At the June 30, 2020 Measurement Date, the
Village's proportionate share was 0.0016543 84, which was an increase of 0.000077% from its
proportionate share measured as of June 30, 2019.
Page 82 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
For the fiscal year ended September 30, 2020, the Village recognized pension expense of $150,583
as follows:
Service Cost $ 431799
Interest Cost 2221661
Effect of economic/demographic gains or losses
(difference between expected and actuarial experience) 131420
Effect of assumptions changes or inputs 451285
Member contributions (12,382)
Projected investment earnings (182,602)
Net difference between projected and actual investment earnings 201045
Administrative expenses 357
Total $ 150,583
In addition, the Village reported deferred outflow 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) $ - $ 27,442
Effect of assumptions changes or inputs - 1291806
Changes in proportion and differences between
contributions and proportionate share of
contributions (60,686) 171502
Net differences between projected and actual
investment
earnings - 4203
Village Pension Plan contributions subsequent to
the measurement date - 141530
Total $ (60,686) $ 231,973
The deferred outflows of resources related to the Pension Plan contributions subsequent to the
measurement date, totaling $14,530 will be recognized as a reduction of the net pension liability in
the fiscal year ended September 30, 2021.
Page 83 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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
2021
221135
2022
491645
2023
451063
2024
301604
2025
9,310
Thereafter
-
Discount Rate
The discount rate used to measure the total pension liability was 6.80%. 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 if future experience follows assumptions and the Actuarially
Determined Contribution is contributed in full each year.. Therefore, the discount rate for calculating
the total pension liability is equal to the long-term expected rate of return.
Discount rate 6.80%
Long-term expected rate of return, net of investment expense 6.80%
Municipal bond rate N/A
Actuarial Assumptions
The actuarial assumptions that determined the total pension liability as of June 30, 2020, were based on
the results of an actuarial experience study for the period July 1, 2013 — June 30, 2018.
Valuation Date
Measurement date
Inflation
Salary increases including inflation
Mortality
Actuarial cost method
July 1, 2020
June 30, 2020
2.40%
3.25%
PUB-2010 base table varies by member category and sex,
projected generationally with Scale MP-2018 details in
valuation report
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 6.80%, 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 (5.80%) or one percentage point
higher (7.80%) than the current rate.
1 % Current 1 %
Decrease Discount Rate Increase
5.80% 6.80% 7.80%
Village's proportionate share of
net pension liability $ 11144,983 $ 717,034 $ 3591610
Page 84 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Long -Term Expected Rate of Return
The long-term expected rate of return assumption of 6.80% on Pension Plan investments 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:
Compound
Annual
Annual
Target
Arithmetic
(Geometric)
Standard
Asset Class
Allocation
Return
Return
Deviation
Cash
1.0%
2.2%
2.2%
1.2%
Fixed income
19.0%
3.0%
2.9%
3.5%
Global equity
54.2%
8.0%
6.7%
17.1 %
Real estate
10.3%
6.4%
5.8%
11.7%
Private equity
11.1 %
10.8%
8.1 %
25.7%
Strategic investments
4.4%
5.5%
5.3%
6.9%
Assumed Inflation - Mean
2.4%
1.7%
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, 2020 the Village reported a payable in the
amount of $592 employee and $6,962 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, 2020, eligible retirees and beneficiaries
received a monthly HIS payment equal to the number of years of creditable service credited at
retirement multiplied by $5. The minimum payment is $30 and maximum payment is $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.
Page 85 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Contributions — For the fiscal year ended June 30, 2020, 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 which HIS payments are authorized.
The Village's total contributions to the HIS Plan totaled $4,348 for the fiscal year ended September
30, 2020.
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, 2020, HIS valuation
is the most recent valuation and was used to develop the liabilities for June 30, 2020. Liabilities
originally calculated as of the actuarial valuation date have been recalculated as of a later GASB
Measurement Date using standard actuarial roll forward procedures. The discount rates used at the
two liability measurement dates differ due to changes in the applicable municipal bond index
between dates.
At September 30, 2020, the Village reported a liability of $109,870 for its proportionate share of
the Pension Plan's net pension liability, of which $1,145 represents Village's net pension liability
due within one year due to the pension's plan fiduciary net position being less than the amount of
benefit payments expected to be paid within one year. The Village's proportionate share of the net
pension liability was based on the Village's 2019-2020 fiscal year contributions relative to the
2018-2019 fiscal year contributions of all participating members. At June 30, 2020, the Village's
proportionate share was 0.0008998%, which was a decrease of 0.000037% from its proportionate
share measured as of June 30, 2019.
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 67.
For the fiscal year ended September 30, 2020, the Village recognized pension expense of $9,042 as
follows:
Service Cost $ 21389
Interest Cost 31623
Effect of economic/demographic gains or losses
(difference between expected and actuarial experience) 762
Effect of assumptions changes or inputs 21339
Member contributions (3)
Projected investment earnings (106)
Net difference between projected and actual investment earnings 36
Administrative expenses 2
Total $ 91042
Page 86 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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
$ (85) $ 41494
(6,388) 115814
(49,613) -
- 88
- 1,271
Total $ (56,086) $ 17,667
The deferred outflows of resources related to the HIS Plan, totaling $1,271 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, 2021. Other amounts
reported as deferred outflows of resources and deferred inflows of resources related to the HIS
Plan will be recognized in pension expense as follows:
Fiscal Year Ending
Amount
2021
$ (14fi30)
2022
(91916)
2023
(91400)
2024
(41230)
2025
(11821)
Thereafter
307
$ (39,690)
Discount Rate
The discount rate used to measure the total pension liability was 2.21 %. In general, the discount
rate for calculating the total pension liability under GASB 67 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 discount rates
used at the two dates differ due to changes in the applicable municipal bond index.
Page 87 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Discount rate 2.21 %
Long-term expected rate of return, net of investment expense N/A
Bond Buyer General Obligation 20-Bond Municipal Bond Index 2.21 %
Actuarial Assumptions
The actuarial assumptions that determined the total pension liability as of June 30, 2020, were
based on certain results of an actuarial experience study of the FRS for the period July 1, 2013 -
June 30, 2018.
Valuation Date
Measurement date
Inflation
Salary increases including inflation
Mortality
Actuarial cost method
July 1, 2020
June 30, 2020
2.40%
3.25%
Generational PUB-2010 with Projection Scale MP-2018;
details in valuation report
Individual Entry Age
Sensitivity Analysis
The following presents the net pension liability of the HIS, calculated using the discount rate of
2.21 %, 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 (1.21%) or one percentage point higher (3.21%)
than the current rate.
1 % Current 1 %
Decrease Discount Rate Increase
1.21% 2.21% 3.21%
Village's proportionate share of
net pension liability $ 12705 $ 109,870 $ 95,845
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.
All full-time general employees who are not classified as police officers or firefighters are eligible
for membership in the General Employees' Pension Plan on the date of employment. The General
Employees' Pension Board consists of five Trustees. Two are legal residents of the municipality,
appointed by the Village Council, and two are full time General Employee members. The fifth
Trustee is selected by a majority vote of the other Trustees.
The 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.
w ="9916,01 no UL099
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
All full-time police officers and all full-time firefighters are eligible for membership in the Public
Safety Officers' Pension Plan on the date of employment. 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).
Membership in the Village of Tequesta's defined benefit pension plans as of the actuarial valuation
date of October 1, 2019:
FPTF
PPTF
GPTF
Number of:
Inactive members or beneficiaries currently receiving benefits
6
3
8
Inactive members entitled to but not yet receiving benefits
1
3
7
Active members
20
17
56
Total
27
23
71
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,
2019 measurement date were determined as of the beginning of the year, October 1, 2018 (based on
actuarial valuation results as reported in the October 1, 2018 actuarial valuation). Using a
measurement date of September 30, 2019 allows for timelier reporting at the end of the year. These
liabilities are used for GASB Statement No. 68 reporting for the reporting fiscal year ending
September 30, 2020.
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.
FPTF PPTF GPTF
Actuarial Valuation Date Oct. 1, 2018 Oct. 1, 2018 Oct. 1, 2018
Measurement Date of the net pension liability Sep. 30, 2019 Sep. 30, 2019 Sep. 30, 2019
Village's Fiscal Year Ended Date for
Reporting Purposes Sep. 30, 2020 Sep. 30, 2020 Sep. 30, 2020
Page 89 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Pension Expense
Fiscal Year Ended September 30, 2020
Based on Measurement Period Ended September 30, 2019
FPTF PPTF GPTF
Service Cost $
333,395 $
1001925 $
461,164
Interest on the Total Pension Liability
878,984
215,318
425,911
Current -Period Benefit Changes
22,243
821,833
-
Employee Contributions (made negative for
additions here)
(94,343)
(65,446)
(161,553)
Projected Earnings on Plan Investments (made
negative for additions here)
(800,818)
(329,992)
(408,974)
Administrative Expense
301043
30,034
48,241
Other Changes in Plan Fiduciary Net Position
(Contributions Transferred from 401(a) Plan)
-
(297,733)
-
Other Changes in Total Pension Liability
(Increase in State Contribution Reserve)
-
649,262
-
Recognition of Outflow (Inflow) of Recourses
due to Liabilities
39,217
(156,966)
(4,237)
Recognition of Outflow (Inflow) of Recourses
due to Assets
881108
291046
49,554
Total Pension Expense $ 496,829 $ 996,281 $ 410J 06
Page 90 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
The deferred outflow of resources, resulting from the Village's contributions to the Plans
subsequent to the measurement date of September 30, 2019 will be recognized as a reduction of the
Village's net pension liability in the fiscal year ended September 30, 2021.
The Village reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Fire:
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
Police:
Difference between expected and actual experience
Changes in assumptions
Net difference between projected and actual
earnings on pension plan investments
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
of Resources Resources
$ 87,767 $
23201
459,420
78,128
3561815
261,515
443,018
-
$ 11347,020 $
572,444
Deferred Outflows Deferred Inflows of
of Resources
Resources
$ 19,341
$
3201601
115,347
8,220
149,241
99,590
$ 283,929
$
428,411
Deferred Outflows
Deferred Inflows of
of Resources
Resources
$ 46,655
$
264,301
202,731
-
15507
13408
391,341
-
$ 796,534
$
399,189
Page 91 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Net Deferred Inflows and Deferred Outflows of Resources by Year to be Recognized in
Future Pension Expenses
Fiscal Year Ending September 30,
2021
2022
2023
2024
2025
Thereafter
Total
Net Deferred Inflows and Outflows of
Resources
FPTF
PPTF
GPTF
$ 21,654
$ (170,106)
$ (14,017)
181864
(509880)
(31,062)
7603
361694
29,097
1211507
391810
49,167
61,208
-
(17,430)
311662
-
(91751)
$ 331,558
$ (144,482)
$ 61004
Net Pension Liability (Asset)
Below is a summary of components of the net pension liability (asset), by Plan, which was
measured as of September 30, 2019 (measurement date in accordance with GASB Statement No.
68).
Measurement Date September 30,
Total Pension Liability
Plan Net Position
Net Pension Liability (Asset)
Plan Net Position as a % of Total
Pension Liability
Fire Police General
$ 13,25304 $ 41672,055 $ 612491987
87.31% 120.92% 99.39%
Pao 92 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
In accordance with GASB Statement No. 67, information as of September 30, 2020 has been
disclosed:
Fire
Police
General
Measurement Date September 30,
2020
2020
2020
Total Pension Liability
$ 14,767,838
$ 4190602
$ 71280,856
Plan Net Position
13,058,965
61171,161
711291156
Net Pension Liability (Asset)
$ 1,708,873
$ (11264,359)
$ 151,700
Plan Net Position as a % of Total
Pension Liability
88.43% 125.77%
97.92%
Below is a detail of the net changes in pension liability (asset):
FIREFIGHTERS' PENSION TRUST
CHANGES IN NET PENSION LIABILITY
Increase (Decrease)
Total Pension
Plan Fiduciary
Net Pension
Liability
Net Position
Liability
Balances at September 30, 2018
$ 115898,913
$ 1018771527 $
1,021,386
Changes for the year:
Service cost
333,395
-
3331395
Interest
878,984
-
8781984
Changes of benefit terms
22,243
-
22,243
Differences between expected
and actual experience
(41 ,742)
-
(415742)
Changes in assumptions
378,870
-
3781870
Contributions - employer
-
332,559
(332,559)
Contributions - state
-
1561424
(15 6,424)
Contributions - employee
-
94,343
(945343)
Net investment Income
-
358,277
(358,277)
'Benefit payments, including refunds
of employee contributions
(216,799)
(216,799)
-
Administrative expense
-
(30,043)
30,043
Net Changes
1,354,951
$ 6941761
660,190
Balances at September 30, 2019
$ 13,25304
111572,288 $
11681,576
Page 93 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
POLICE OFFICERS' PENSION TRUST
CHANGES IN NET PENSION ASSET
Increase (Decrease)
Total Pension
Plan Fiduciary
Net Pension
Liability
Net Position
Asset
Balances at September 30, 2018
$ 258891074
$ 41246,463 $
(113579389)
Changes for the year:
Service cost
100,925
-
100,925
Interest
215,318
-
2151318
Changes of benefit terms
821,833
-
821,833
Differences between expected
and actual experience
(85J46)
-
(859146)
Changes of assumptions
120,973
-
120,973
Contributions - employer
-
317,338
(317,338)
Contributions - employer (from state)
-
649,262
(649,262)
Contributions - members
-
65,446
(65,446)
Net investment income
-
143,441
(143 ,44 1)
Benefit payments, including refunds
of employee contributions
(40, 184)
(40,184)
-
Administrative expense
-
(30,034)
301034
Other
649,262
297,733
3511529
Net changes
11782,981
1140302
3791979
Balances at September 30, 2019
$ 41672,055
$ 51649,465 $
(977,41 0)
Page 94 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
GENERAL EMPLOYEES' PENSION TRUST
CHANGES IN NET PENSION LIABILITY
Balances at September 30, 2018
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
Refunds
Administrative expense
Net changes
Balances at September 30, 2019
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
$ 5,727,627 $ 51708,753 $ 18,874
4611164
425,911
4611164
425,911
(156,013) - (156,013)
- 362,848 (362,848)
- 161,553 (161,553)
- 235,519 (235,519)
(160,588) (160,588)
(48, 114) (48, 114)
- (48,241)
5221360 5021977
48,241
191383
6,2491987 $ 65211,730 $ 381257
Sensitivity of the Net Pension Liability (Asset) to Changes in the Discount Rate
A single discount rate of 7.00% as of September 30, 2020, same as of September 30, 2019, was
used to measure the total pension liability for the Police Officers' and Firefighters' Pension trusts.
This single discount rate was based on the expected rate of return on pension plan investments of
7.00%. A discount rate of 6.50% was used to measure total pension liability for the General
Employees' Pension Trust as of September 30, 2020 and 7.00% for 2019. This single discount rate
was based on the expected rate of return on pension plan investments of 6.5% and 7.00%
accordingly. 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.
Page 95 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Regarding the sensitivity of the net pension liability to changes in the single discount rate, the
tables below present the plan's net pension liability, calculated using a single discount rate of
7.00% (for the Police Officers' and Firefighters' Pension trusts) and 6.50% (for the General
Employees' Pension Trust) 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).
Current Single
1 % Discount Rate 1 %
Decrease Assumption Increase
Fiscal Year Ended September 30, 2019 6.00% 7.00% 8.00%
Firefighters' $ 3,3801383 $ 1011576 $ 260,724
Police Officers' (427,381) (997,41 0) (1,427,328)
General Employees' $ 874,673 $ 38,257 $ (660,199)
In accordance with GASB Statement No. 67, information as of September 30, 2020 has been
disclosed:
Current Single
1 %
Discount Rate
1 %
Decrease
Assumption
Increase
Fiscal Year Ended September 30, 2020
6.00%
7.00%
8.00%
Firefighters'
$ 3,5541789
$ 1,708,873
$ 164,620
Police Officers'
(637,394)
(1>4,359)
(I,773,219)
Current Single
Discount Rate
1 %
Decrease
Assumption
Increase
Fiscal Year Ended September 30, 2020
5.50%
6.50%
7.50%
General Employees' $ 111811143 $ 1511700 $ (701 ,396)
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 III, Division 1, Section 2-61 (b), and was most recently amended under
Ordinance No. 02-19 , passed and adopted on March 14, 2019. The Plan is also governed by
certain provisions of Chapters 175 and 185, Florida Statutes, Part VII, Chapter 112, Florida
Statutes and the Internal Revenue Code.
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
B. Effective Date
Adopted March 14, 2019
C. Plan Year
October 1 through September 30
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 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
11 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.
Pa6O 97 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Benefit -For police officers hired before February 1, 2013 and firefighters hired before August 14,
2015 (firefighters: Credited Service onlyprior to September 1, 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
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 police officers hired on or after February 1, 2013 and firefighters hired on or after August 14,
2015:
2.75% of AFC multiplied by all years of Credited Service
Normal Form of Benefit - 10 Years Certain and Life thereafter; other options are also available.
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.
J. 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 (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 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.
Pa64 98 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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.
Pa�� 99 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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 anon -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.
Page'� 00 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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 hired before February 1, 2013 and 6% of compensation for
police officers hired on or after February 1, 2013. Five (5) percent of compensation 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: The Village is permitted to use all annual Chapter 185
revenue as a credit toward the Required Employer Contribution and to apply the Chapter 185
reserve of $613,832 as an offset to the Required Employer Contribution.
Chapter 175 Premium Tax Revenue: The Village is permitted to use all annual Chapter 175
revenue as a credit toward the Required Employer Contribution.
V. Employer Contributions
Any additional amount determined by the actuary needed to fund the plan properly according to
State laws.
Page's 01 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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 freighters 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 are two DROP plan participants with the assets balance rollforward of $464,403 at fiscal
year ending September 30, 2020.
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.
Page'� 02 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
AA. Changes from Previous Valuation
None
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, 2020.
FIREFIGHTERS' PENSION TRUST FUND
STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2020
Assets
Cash and cash equivalents
$ 1991893
Investments
Equities
065,406
Fixed income
3103 513 93
Real Estate Funds
942,770
Total investments
12,643,569
Accounts receivable
171,940
Contributions receivable
401315
Accrued interest receivable
101061
Prepaid items
181067
Total Assets
1303,845
Liabilities
Accounts payable
101184
Due to broker
141696
Total Liabilities 241880
Net Position Restricted for
Pension Benefits $ 1310581965
Page'� 03 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
FIREFIGHTERS' PENSION TRUST FUND
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Additions
Contributions:
State of Florida
$ 171,939
Employer
4431018
Employee
1011983
Total Contributions
716,940
Investment earnings
Net appreciation in fair value of investment
7639139
Gain on sale of investments
781198
Interest and dividends
2121077
Total investment earnings
110531414
Less investment expenses
(32,392)
Net investment earnings
110211022
Miscellaneous
36
Total Additions
117371998
Deductions
Benefits paid
216,799
Refund of contributions
81648
Administrative expenses
251874
Total Deductions
2511321
Change in Net Position
154865677
Net Position Restricted for
Pension Benefits
Beginning of year
1115721288
End of year
$ 13105 81965
Page's 04 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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, 2020.
POLICE OFFICERS' PENSION TRUST FUND
STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2020
Assets
Cash and cash equivalents
Investments
Equities
Fixed income
Real Estate Funds
Total investments
Accounts receivable
Contributions receivable
Accrued interest receivable
Prepaid items
Total Assets
Liabilities
Accounts payable
Due to broker
Total Liabilities
Net Position Restricted for
Pension Benefits
$ 971026
410841574
1,430,860
4441349
519591783
1161626
31454
41742
41091
6,1851722
71635
61926
141561
$ 611711161
Page's 05 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
POLICE OFFICERS' PENSION TRUST FUND
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Additions
Contributions:
State of Forida
$ 911375
Employee
70,327
Total Contributions
1611702
Investment earnings
Net appreciation in fair value of investments
359,510
Gain on sale of investments
371676
Interest and dividends
1021393
Total investment earnings
4991579
Less investment expenses
(22,573)
Net investment earnings
4771006
Miscellaneous
32
Total Additions
6381740
Deductions
Benefits paid
491095
Refund of contributions
42,075
Administrative expenses
251874
Total Deductions
1171044
Change in Net Position 5211696
Net Position Restricted for
Pension Benefits
Beginning of year 516491465
End of year $ 611711161
Page79 06 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
General Employees' Pension Plan
A. Ordinances
The Plan was established under the Code of Ordinances for the Village of Tequesta, Florida,
Chapter 2, Article III, 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.
B. Effective Date
December I I , 2003
C. Plan Year
October 1 through September 30
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 general employees who are not classified as police officers or 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 general
employee with the Village. No service is credited for any periods of employment for which the
member received a refund of their contributions.
G. 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.
H. 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.
Pag(M 07 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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 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
J. 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
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
Page � 08 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
M. 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
N. 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.
0. 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.
P. Post Retirement Death
Benefit determined by the form of benefit elected upon retirement.
Page 09 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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.
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.
S. 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%.
T. Member Contributions
5% of Compensation
U. Employer Contributions
Any additional amount determined by the actuary needed to fund the plan properly according to
State laws.
V. Cost of Living Increases
Not Applicable
W. 13th Check
Not Applicable
Pagel 10 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
X. Deferred Retirement Option Plan
Not Applicable
Y. 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.
Z. 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, 2020.
GENERAL EMPLOYEES' PENSION TRUST FUND
STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2020
Assets
Cash and cash equivalents
Investments
Equities
Fixed income
Real Estate Funds
Total investments
Contributions receivable
Accrued interest receivable
Prepaid items
Total Assets
Liabilities
Accounts payable
Total Liabilities
Net Position Restricted for
Pension Benefits
$ 41,678
418421805
116811671
5301254
710541730
27,365
7,513
13,173
711441459
15,303
15,303
7.129.156
Pag64111 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
GENERAL EMPLOYEES' PENSION TRUST FUND
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Additions
Contributions:
Employer
$ 3911341
Employee
1801175
Total Contributions
5711516
Investment earnings
Net appreciaton in fair value of investments
5001164
Gain on sale of investments
231247
Interest and dividends
1271757
Total investment earnings
6511168
Less investment expenses
(38,142)
Net investment earnings
6131026
Miscellaneous
21286
Total Additions
111861828
Deductions
Benefits paid
1611419
Refunds of contributions
531330
Administrative expenses
541653
Total Deductions
2691402
Change in Net Position
9171426
Net Position Restricted for
Pension Benefits
Beginning of year
612111730
End of year
$ 711291156
PagO12 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
The following summarizes the pension related amounts for the pension plans as of the indicated
measurement date:
Net Pension
Deferred
Deferred
Pension
Measurement
Net Pension
Liability
Outflow of
Inflow of
Expense
Date
Asset
Resources
Resources
General Employees'
Pension Trust Fund
9/30/19
$ 38,257
$ 796,534
$ 3991189
$ 410J06
Firefighters Pension Trust
Fund
9/30/19
1011576
113471020
572,444
496,829
Police Pension Trust Fund
9/30/19
977,410
283,929
428,411
996,281
FRS
6/30/20
7171034
2311973
601686
1501583
HIS
6/30/20
1091870
171667
5606
9,042
Total
$ 9779410
$ 2,546,737
$ 216779123
$ 1,516,816
$ 290621)841
Village of Tequesta Defined Contribution Plan
The Village Single -Employer Defined Contribution Plan (the Plan) was established on February 1,
2013 with an 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 covered the Police Chief and Assistant Police Chief. 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 contributes 10% of compensation. 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, 2020 was $142,825.
Employee contributions to the Plan for fiscal year ended September 30, 2020 were $12,398; the
Village's contributions were $26,561.
PagO 13 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
G. Other Postemployment Benefits (OPEB)
Village of Tequesta's Other Postemployment Benefits Plan
Plan description. The Village of Tequesta provides health insurance benefits to its retired employees
through a single -employer plan administered by the Village. Pursuant to the provisions of Section
112.0801, Florida Statutes, former employees who retire from the Village and eligible dependents may
continue to participate in the Village's fully -insured benefit plan for medical insurance coverage. The
Village subsidizes the premium rates paid by retirees by allowing them to participate in the plan at
reduced or blended group (implicitly subsidized) premium rates for both active and retired employees.
These rates provide an implicit subsidy for retirees because, on an actuarial basis, their current and
future claims are expected to result in higher costs to the plan on average than those of active
employees. The benefits provided under this defined benefit plan are provided until the retiree's
attainment of age 65 (or until such time at which retiree discontinues coverage under the Village
sponsored plans, if earlier).
Funding Policy. The Village's Other Post -Employment Benefits are unfunded (pay-as-you-go basis).
That is, the Village does not have a separate Trust Fund to make contributions to advance -fund the
obligation. Current and future retirees are required to pay 100% of the blended premium to continue
coverage under the Village's group health insurance program.
Summary of Membership Information. The following table provides a summary of the number of
participants in the plan at the measurement date of September 30, 2019:
Inactive members or beneficiaries currently receiving benefits 4
Inactive members entitled to but not yet receiving benefits 0
Active members 100
Total
104
OPEB Liability, Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources
The Village recognizes the OPEB liability and the OPEB expense in the financial statements, along
with the related deferred outflows and inflows of resources. The OPEB liability is the difference
between the total OPEB liability and the plan's fiduciary net position. Since the plan is currently
unfunded, the net OPEB liability is equal to and reported as total OPEB liability.
At September 30, 2020, the Village reported an OPEB liability of $390,250 that is based on an
Alternative Measurement Method calculation performed as of a valuation date of September 30, 2019
and measurement date of September 30, 2019.
PagP14 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
For the fiscal year ended September 30, 2020, the Village recognized OPEB expense of $254,438.
Total OPEB Liability -Beginning (September 30, 2018) $ 6441688
Service cost 501439
Interest on the Total OPEB Liability 251960
Difference between expected and actuarial experience of the
Total OPEB Liability (309J65)
Changes in assumptions and other inputs 121964
Benefit payments (34fi36)
Net change in Total OPEB Liability (254,438)
Total OPEB Liability -Ending (September 30, 2019) $ 3905250
In addition, the Village reported an outflow of resources due to the benefits paid after the measurement
date in the amount of $19,040. There were no deferred inflows related to OPEB.
Actuarial methods, assumptions and other inputs. The total OPEB liability was determined using
Alternative Measurement Method (AMM) as authorized by GASB Statement No. 75.
Valuation Date September 30, 2019
Measurement Date September 30, 2019
Actuarial Cost Method Entry age normal
Inflation 2.25 %
Discount Rate 2.75%
Salaty Increase 6.00%
Retirement Age Varies based on several factors including plan -specified
retirement eligibility provisions and experiences
Mortality PR-2000 Combined Healthy Participant mortality tables, projected the
year 2000 using Projection Scale AA
Healthcare Cost Trend Rates 6.50% for FY beginning 2020, 6.25% for FY beginning 2021 and
then gradually decreasing to an ultimate trend rate of 4.00% in 2029
Other infornation
Notes Changes in assumptions and other inputs reflected in the schedule of
changes in the Total OPEB Liability include:
- discount rate changed to 2.75% (from 3.83%)
- premiums were updated based on information provided
- updated inflation and healthcare cost trend rates as described above
There were no benefit changes during the year.
PagO15 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and plan members) and include the types of benefits provided at the time
of each AMM calculation and the historical pattern of sharing of benefit costs between the employer
and plan members to that point. The methods and assumptions used include techniques that are
designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial
value of assets, consistent with the long-term perspective of the calculations.
As authorized by GASB Statement No. 75, the Alternative Measurement Method allows to use
simplifications of certain assumptions in measuring the costs and liabilities.
Discount Rate
For plans that do not have formal assets, the discount rate is equal to the tax-exempt municipal bond
rate based on an index of 20-year general obligation bonds with an average AA credit rating as of the
measurement date. For the purpose of this AMM calculation, the municipal bond rate is 2.75% (based
on the daily rate of Fidelity's "20-Year Municipal GO AA Index" closest to but not later than the
measurement date). The discount rate was 3.83% as of the beginning of the measurement year.
Sensitivity of Total OPEB Liability
Regarding the sensitivity of the total OPEB liability to changes in the discount rate, the following
presents the plan's total OPEB liability, calculated using a discount rate of 2.75%, as well as what
the plan's total OPEB liability would be if it were calculated using a discount rate that is one
percent lower or one percent higher.
Sensitivity of Total OPEB Liability to the Discount Rate Assumption
Current Discount Rate
1% Decrease
1.75%
Assumption
2.75%
1 % Increase
3.75%
Village's OPEB liability $ 400,637 $ 390,250 $ 373,795
Regarding the sensitivity of the total OPEB liability to changes in the healthcare cost trend rates,
the following presents the plan's total OPEB liability, calculated using the assumed trend rates as
well as what the plan's total OPEB liability would be if it were calculated using a trend rate (6.5%)
that is one percent lower or one percent higher.
Sensitivity of Total OPEB Liability to the Healthcare Cost Trend Rate Assumption
Current Healthcare Cost
1 % Decrease Trend Rate Assumption 1 % Increase
5.5% 6.5% 7.5%
Village's OPEB liability $ 3521607 $ 3901250 $ 4331710
PagO 16 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
H. Construction and Other Commitments
The Village has active construction projects as of September 30, 2020. The projects include various
water, stormwater, architect services for the new recreation facility and purchase of a new fire
rescue vehicle. At year end, The Village had the following significant related to uncompleted
contacts for construction and equipment:
Description Remaining Commitment
Governmental Funds:
2020 Fire rescue vehicle $ 2981661
Architect services for new recreation facility 461563
3451224
Business -type Activities:
Water utility projects 6501962
Stormwater projects 23 3163 0
$ 8841592
All commitments are financed from existing Village resources.
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.
I. Contracted Services —Refuse and Recycling Collection
The Village entered into a new agreement with Waste Management, Inc. of Florida with the initial
term for a period of eight years beginning October 1, 2017 and ending September 30, 2025 with
optional renewal for one additional five year period. 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 annual change in the collection component
is determined using the Water, Sewer, and Trash Collection CPI published monthly by The Bureau
of Labor Statistics during the most recent previous twelve consecutive months period beginning on
April 1 and ending March 31.
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
cannot anticipate the areas in which potential claims may arise, it 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, statutory
accidental death and dismemberment, firefighter cancer program coverage, and railroad coverage.
Deductibles and limits vary by coverage and are secured based upon the Village's tolerance of risk
retention in each area.
Pag8q 17 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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 property claims up to $100,000 via a policy deductible. FMIT issued
members in good standing a return of premium credit. The Village received a total credit of $7,369
related to policy year 2018/2019.
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 2019/2020 resulted in the Village being refunded a total of $8,456
in fiscal year 2021.
K. Lease Obligations
Capital Lease -Police Fleet
The Village entered into a capital lease with Enterprise Fleet Management Trust in the amount of
$105,305 with funding on September 18, 2020 for the financing of three Dodge Durango vehicles.
The applicable interest rate is 3.15% and interest and principal payments are due monthly. This is a
five (5) year lease with sixty (60) payments.
The following is the schedule of the of the future minimum lease payments under this capital lease
arrangement at September 30, 2020:
Fiscal Year Ending September 30:
Amount
2021
$ 24,019
2022
241019
2023
24,019
2024
241019
2025
26,596
Total minimum lease payments
122,672
Less amount presenting interest
(17,857)
Present Value of Future Minimum Lease Payments
$ 104,815
Capital Lease — Police Tasers
The Village entered into a 60-month capital lease with Axon Enterprise, Inc. in the amount of
$311100 with funding on September 18, 2018 for the financing of twenty (20) tasers. The payments
are due annually.
The following is the schedule of the future minimum lease payments under this capital lease
arrangement at September 30, 2020:
Fiscal Year Ending September 30: Amount
2021 $ 6,620
2022 6,620
Total minimum lease payments
Present Value of Future Minimum Lease Payments
13,240
$ 13,240
Pag8�18 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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. The lease matured on 01/05/2020 and paid off at fiscal year ending
9/30/2020.
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 l lth. This is a nine (9) year lease
with ten (10) payments.
Pursuant to Section 4.4(b) of the Agreement, the interest rate automatically increased from 2.42%
to 2.94%, effective as of January 1, 2018, due to a decrease in the maximum federal corporate
income tax rate.
The following is a new schedule of the future minimum lease payments under this capital lease
arrangement at September 30, 2020:
Fiscal Year Ending September 30:
Amount
2021
$ 481794
2022
481794
2023
481794
Total minimum lease payments
1461382
Less amount representing interest
(81203)
Present Value of Future Minimum Lease Payments
$ 13 8,179
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 4 to 10 years and have interest rates from 3.685% to 4.96% per year. The outstanding
notes from direct borrowings and direct placements related to governmental activities of $712,790
contain events of default and remedies whereby failure of the Village to pay the principal and interest
on any debt when due or failure to observe and perform any covenant or condition applicable to the
various Village obligations, constitutes an "event of default." Upon the occurrence of any event of
default, the noteholder may declare all outstanding amounts become immediately due.
The Village's outstanding notes from direct borrowings related to its business -type activities of
$3,119,112 are secured by pledged revenues of the water utility system or by a pledge of a covenant to
budget and appropriate non -ad valorem revenues. These notes contain (1) a provision that, in an event
of default, the timing of repayment of outstanding amounts may become immediately due if pledged
revenues during the fiscal year are less than 120% of debt service requirements for that year and (2) a
provision that if the Village is unable to make payment, outstanding amounts may become due
immediately.
Pagel 19 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
The Notes outstanding at September 30, 2020 are as follows:
Signed
Original
Interest
Final
Outstanding
Promissory Notes Payable
Date
Borrowing
Rate
Maturity
9/30/2020
Government Activities
Public Improvements/P.S. Building
9/13/2002
$ 5,000,000
4.28%
9/13/2022
$ 7121790
Business -type Activities
Water Plant Expansion
6/30/2004
$ 6451170
4.96%
4/1/2021
$ 369895
Public Improvement (Refunding)
7/14/2008
61554,935
3.69%
3/1/2028
3021217
Total Business -type Activities
$ 311191112
Legal Debt Margin
The Village is subject to a bonded debt limitation of 10% of total assessed value of taxable real
property. The final gross taxable value at September 30, 2020 was $1,151,534,124. As of September 30,
2020 the Village did not exceed the debt limit of $115,153,412.
Changes in Long -Term Liabilities
Changes in the Village's long-term liabilities for the fiscal year ended September 30, 2020 are as
follows:
Governmental Activities
Beginning
Balance
Additions
Deletions
Ending
Balance
Due Within
One Year
Governmental Activities
Note Payable - 2002
$ 1,046,986
$ -
$ 334,196
$ 712,790
$ 348,783
Capital leases
228,793
1051305
7704
256,234
71,799
Compensated absences
656,329
224,160
97,642
782,847
102,200
Total Governmental Activities
$ 1,932,108
$ 329,465
$ 509,702
$ 1,751,871
$ 522,782
* For governmental activities, the liability for
compensated absences, pension and OPEB liabilities are
liquidated by the general fund.
Business -type Activities
Beginning
Ending
Due Within
Balance
Additions
Deletions
Balance
One Year
Business -type Activities
Note Payable (2004)
$ 771895
$ -
$ 411000 $
361895
$ 36,895
Note Payable (2008)
3,42906
-
3471469
302,217
361,102
Compensated absences
133,513
36,127
463
169,177
15,000
Total Business -type Activities
$ 3,6411094
$ 36,127
$ 388,932 $
3,288,289
$ 412,997
Pagel 20 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
The debt service requirements for the Village's notes are as follows:
Governmental Activities
Fiscal Year Ending Promissory Notes
September 30: Principal Interest Total
2021 $ 3481783 $ 231718 $ 3721501
2022 3641007 81494 372,501
Total $ 7121790 $ 32,212 $ 74502
Business -type Activities
Promissory Notes
Fiscal Year Ending
Business
-type Activities
September 30:
Principal
Interest
Total
2021
$ 397,999
$ 1091757 $
5071756
2022
3761729
941117
470,846
2023
3911823
791732
4711555
2024
4061556
641977
471,533
2025
420,915
49,309 $
470,224
2026-2028
111251090
511655
111761745
Total
$ 311191112
$ 4491547 $
315681659
Total Primary Government Debt
Fiscal Year Ending
Total Primary Government Debt
September 30:
Principal
Interest
Total
2021
$ 7461782 $
1331475 $
8801257
2022
7401736
1021611
8431347
2023
3911823
791732
4711555
2024
4061556
641977
4711533
2025
4201915
491309
2026-2028
11125,090
511656
1,1761746
Total
$ 318311902 $
4811760 $
4,3131662
M. Fund Balance
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 operating
expenditures over annual revenues (approximately 17%). 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.
PageQ1 21 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
At September 30, 2020 the unassigned fund balance was below the minimum target level - 14.16%,
which is a 3.23% increase compared to the prior fiscal year. Management continues to propose and
implement measures to cover the shortfall in unassigned fund balance.
N. Interfund Transfers
The composition of interfund transfers for the fiscal year ended September 30, 2020 is as follows:
Interfund Transfers
Transfers In
Capital
Improvement
Fund General Fund Building Fund Total
Transfers Out (1) (2) (3 )
General Fund $ 173,585 $ - $ 1,1511130 $ 1,324,715
Building Fund - 1951378 - 195,378
Total Interfund Transfers $ 1731585 $ 1951378 $ 1,1511130 $ 155205093
(1) Transfer is to restrict infrastructure tax to fund capital projects and improvements.
(2) Indirect costs reimbursement.
(3) Transfer of restricted building fund balance to its own fund.
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.
P. Subsequent events
On January 21, 2021, the Village entered into a loan agreement with Sterling National Bank for the
issuance of Capital Improvement Revenue Note, Series 2021 in an amount of $6,890,000 over 20
years. The proceeds of this loan will provide for (i) cost of issuance; (ii) construction of a new
community center; (iii) street and sidewalk improvements; (iv) other miscellaneous public safety
and public works improvements; and (v) other parks and recreational improvements. The issue
provides for semi-annual principal and interest payments at an interest rate of 2.18% with a final
maturity date of October 1, 2040.
On February 18, 2021, the Village entered into a 3-year equipment lease financing arrangement
with Truist Bank for the acquisition of computer hardware in connection with its SAN (Storage
Area Network) Project. The total amount financed was $168,3 89.09 at an interest rate of 1.67%.
Principal and interest payments are made annually with a final maturity date of February 18, 2024.
PagO 22 of 496
Agenda Item #2.
REQUIRED SUPPLEMENTARY INFORMATION
Page 123 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Revenues
Ad valorem taxes
Other taxes
Charges for services
Intergovernmental
Intragovernmental
Licenses and permits
Franchise fees
Rents and royalties
Miscellaneous
Fines and forfeitures
Grants, contributions and donations
Investment earnings
Total Revenues
Expenditures
Current:
General government
Public safety
Transportation
Leisure services
Capital outlay
Debt service:
Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Proceeds on sale of capital assets
Issuance of debt
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance - Beginning
Fund Balance - Ending
Variance
with Final
Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 7,482,400 $
7,482,400 $
115471900
116391276
11410,950
1,420,950
888,300
888,300
7251450
7251450
7375100
-
460,000
4601000
2211600
2211600
509750
501750
161000
161000
51000
551000
1300,450 13,074,726
213691350
213731389
799641180
714621703
11405 5400
114001035
6861950
6851250
5101000
5951059
411,620 4271061
7,497,093 $ 14,693
11711,817
72,541
1,387,467
(33,483)
815,868
(72,432)
7251436
(14)
680
680
44702
(12,318)
2181931
(2,669)
19,941
(30,809)
11,708
(4,292)
1011798
46,798
48,065
(66,935)
12,986,486 (88,240)
2,2071621
165,768
7113851605
771098
1,309,050
90,985
603,268
81,982
298,728
296,331
412,060 151001
2681450
831261
7261096
64211835
-
1951378
195,378
-
(127,100)
(127,100)
(1,324,715)
(I,197,615)
151000
301689
21,976
(81713)
-
96,505
105,305
8,800
(112,100)
1951472
(11002,056)
(1,197,528)
1561350
2781733
(275,960)
(554,693)
316701429
316701429
3,6701429
-
$ 318261779 $
319491162 $
31394,469 $
(554,693)
See note to budgetary comparison schedule.
PageM 24 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
NOTE TO THE BUDGETARY COMPARISON SCHEDULE
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
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 nonmaj or 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. However, the legal level of budgetary
control is at the department level What this means is that any amendment that changes the
department's total budget requires the Village Council to approve it in the same manner that
the original budget was approved — by resolution.
The original budret 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 (encumbrances)
=Original budget
The final buds 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 fiscal year, there were no supplemental appropriations. Appropriations are
legally controlled at the department level and expenditures may not legally exceed budgeted
appropriations at that level.
Page 25 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND
RELATED RATIOS
Measurement Date, September 30,
Total Pension Lability
Service cost
Interest
Changes of benefit terms
Difference between expected and actual
experience
Changes of assumptions
Benefit payments
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 Payroll
Net Pension Liability as a Percentage of
Covered Payroll
FIREFIGHTERS' PENSION TRUST FUND
2020 2019 2018 2017 2016 2015 2014
$ 44708 $ 3331395 $ 392,933 $ 3661393 $ 3481504 $ 334,559 $ 312,030
951,218 8781984 827,256 78805 778,642 679,400 5821897
(6,147) 221243 - - - 3181787 -
34602
(41,742)
71,910
(22,327)
(401,835)
108,010
450
-
3781870
-
(136,724)
3001255
-
(216,799)
(216,799)
(518,495)
(163,805)
(438,149)
(61,913)
(53,637)
(8,648)
-
(11852)
-
-
-
(151,438)
(151,438)
(242,266)
1181555
301162
11513,974
113541951
6221166
679,132
3451151
1,497,398
8711902
13,25304
1118981913
11,276,747
101597,615
1012521464
8,755,066
718831164
$ 141767,838 $ 1352531864 $ 1118981913 $ 111276,747 $ 101)5971615 $ 10,2521464 $ 81755,066
$ 443,018 $
3321559 $
182,198 $
209,615 $
60,162 $
335,771 $
351,652
171,939
1561424
3071956
3001401
3941709
1891010
1001617
10083
941343
901424
79,564
68,982
64,721
651803
11021 M58
3581277
9431640
9741383
6091318
77,213
5671786
(216,799)
(216,799)
(518,495)
(163,805)
(438,149)
(61,913)
(53,637)
(8,648)
-
-
(I,852)
-
-
-
(25,874)
(30,043)
(31,858)
(18,789)
(27,450)
(27,290)
(18,921)
-
-
(151,438)
(151,438)
(242,266)
1,486,677
694,761
8225427
1,228,079
4251306
5771512
15013,300
111572,288
1018771527
10,055,100
81827,021
8,401,715
7,8241203
618101903
$ 13,058,965 $ 111572,288 $ 10,877,527 $ 10,055,100 $ 8,827,021 $ 8,401,715 $ 7,824,203
$ 1,708,873 $ 11681,576 $ 110211386 $ 11221,647 $ 11770,594 $ 1,8501749 $ 93003
88.43% 87.31% 91.42% 89.17% 83.29% 81.95% 89.37%
$ 1,699,718 $ 1,572,385 $ 1,507,072 $ 11446,616 $ 1,3791650 $ 1,294,416 $ 11316,060
100.54% 106.94% 67.77% 84.45% 128.34% 142.98% 70.73%
*State Contribution Reserve was used to offset the Village's contribution requirements for the fiscal year ending 2016, 2017 and 2018.
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.
Pag(91 26 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF VILLAGE CONTRIBUTIONS
FIREFIGHTERS' PENSION TRUST FUND
Fiscal Year
Ended
September 30,
Actuarially
Determined
Contribution
Actual
Contribution
Contribution
Deficiency
(Excess)
Covered
Payroll
Actual
Contribution as a %
of Covered Payroll
2014 $
41605
$ 4221107
$ (5,442) $
11316,060
32.07%
2015
4031211
4061226
(3,015)
11294,416
31.38%
2016
4545871
454,871
-
1,379,650
32.97%
2017
498,504
510,016
(11,512)
1,446,616
35.26%
2018
4851729
490,154
(41425)
1,507,072
32.52%
2019
4741074
4881983
(14,909)
115721385
31.10%
2020
6149958
614,958
-
11699,718
36.18%
Notes to Schedule
Valuation Date
10/1/2018
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
Entry age normal
Amortization method
Level dollar, closed
Remaining amortization period
20 years
Asset valuation method
5-year smoothed market
Inflation
2.50%
Salary increases
6.0%, including inflation
Investment rate of return
7.00%
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 pre -retirement mortality) and the PR-2000 Mortality
Table for Annuitants (for post -retirement mortality), with mortality
improvements projected to all future years after 2000 using Scale
BB. For males, the base mortality rates include a 90% blue collar
adjustment and a 10% white collar adjustment. For females, the
base mortality rates include a 100% white collar adjustment. Same
rates used for a Special Risk Class members of the FRS in the July
1, 2017 Actuarial Valuation Report, as mandated by Chapter
112.63, Florida Statutes.
Other information
See discussion of valuation results in the October 1, 2018 Actuarial
Valuation report, dated March 20, 2019.
This schedule is presented as required, however, until a full 10-year trend is compiled, information is
presented for those years available.
PageN 27 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF INVESTMENT RETURNS
FIREFIGHTERS' PENSION TRUST FUND
Fiscal Year Ended September 30, 2020 2019 2018 2017 2016 2015 2014
Annual money -weighted rate of return, net of
investment expenses 8.30% 2.93% 8.92% 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.
Pa�q 28 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION ASSET AND
RELATED RATIOS
POLICE OFFICERS' PENSION TRUST FUND
Measurement Date, September 30,
2020 2019 2018 2017 2016 2015 2014
Total Pension Lability
Service cost
$ 304,219
$ 100,925
$ 98,621 $
80,711 $
1101495 $
126,703 $
1611156
Interest
345,149
215,318
1931922
200,356
201,452
21303
169,526
Benefit changes
-
821,833
-
-
-
(39,467)
-
Difference between expected and actual
experience
(121,364)
(85,146)
34,217
(329,387)
(226,384)
(391,613)
-
Changes of assumptions
-
120,973
-
(30,633)
75,463
-
-
Benefit payments
(49,095)
(40,184)
(27,708)
(27,708)
(27,708)
(30,312)
(10,073)
Refunds
(42,075)
-
(52,038)
(43,331)
Other (increase in State contribution reserve)
(202,087)
649,262
-
-
-
-
-
Net Change in Total Pension Liability
234,747
11782,981
299,052
(106,661)
811280
(121,086)
277,278
Total Pension Liability - Beginning
4,6721055
209,074
215901022
20603
216151403
2,736,489
214599211
Total Pension Liability - Ending (a)
$ 4,90602
$ 4,672,055
$ 209,074 $
2,590,022 $
216961683 $
2,615,403 $
2,736,489
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 Asset - Ending (a) - (b)
Plan Fiduciary Net Position as a Percentage
of Total Pension Liability
Covered Payroll
Net Pension Asset as a Percentage of
Covered Payroll
$ -
$ 3171338
$ 1751116 $
40,829 $
38,638 $
801)782 $
111,164
2931462
649,262
-
-
-
-
-
70,327
65,446
31,338
16,998
17,067
20,545
25,888
477,038
143,441
344,620
357,477
3061504
20,718
2191219
(49,095)
(40,184)
(27,708)
(27,708)
(27,708)
(30,312)
(10,073)
(42,075)
-
-
-
(52,038)
-
(43,331)
(25,874)
(30,034)
(31,858)
(18,788)
(27,026)
(27,967)
(18,677)
(202,087)
297,733
-
-
-
-
-
521,696
1140302
4911508
36808
255,437
63,766
2841190
51M9,465
41246,463
317541955
3,3861)147
311301710
3,066,944
257821754
$ 6,171,161
$ 5,649,465
$ 4,2461463 $
3,754,955 $
3,3 86,147 $
3,130,710 $
3,0661944
$(1,264,359) $ (977,410) $(1,357,389) $(1,164,933) $ (689,464) $ (515,307) $ (330,455)
125.77% 120.92% 146.98% 144.98% 125.57% 119.70% 112.08%
$ 1,229,934 $ 11153,957 $ 5821166 $ 339,957 $ 3411342 $ 4101897 $ 5171760
(102.80)% (84.70)% (233.16)% (342.67)% (201.99)% (125.41)% (63.82)%
* State contribution reserve was used to offset the Village's contribution requirements for fiscal year ending 2020.
* * Transers from 401(a) plan.
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.
Pam � 29 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF VILLAGE CONTRIBUTIONS
POLICE OFFICERS' PENSION TRUST FUND
Fiscal Year Actuarially Contribution Actual
Ended Determined Actual Deficiency Covered Contribution as a %
September 30, Contribution Contribution (Excess) Payroll of Covered Payroll
2014
$ 1111164 $
1111164 $
- $ 517,760
21.47%
2015
801782
80,782
- 410,897
19.66%
2016
37,377
38,638
(I>1) 341,342
11.32%
2017
40,659
401829
(170) 339,957
12.01%
2018
1751116
1751116
- 582,166
30.08%
2019
3175338
3171338
- 11153,957
27.50%
2020
293,462 *
2931462
- 11229,934
23.86%
Notes to Schedule
*The actual employer contribution consists of the annual state contribution of $91,375 and the
Chapter 185 reserve balance of $202,087.
Valuation Date
10/01/2018
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
Entry age normal
Amortization method
Level dollar, closed
Remaining amortization period
20 years
Asset valuation method
5-year smoothed market
Inflation
2.50%
Salary increases
6.0%, including inflation
Investment rate of return
7.00%
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 pre -retirement mortality) and the PR-2000 Mortality
Table for Annuitants (for post -retirement mortality), with mortality
improvements projected to all future years after 2000 using Scale
BB. For males, the base mortality rates include a 90% blue collar
adjustment and a 10% white collar adjustment. For females, the base
mortality rates include a 100% white collar adjustment. Same rates
used for a Special Risk Class members of the FRS in the July 1,
2017 Actuarial Valuation Report, as mandated by Chapter 112.63,
Florida Statutes.
Other Information:
See discussion of valuation results in the October 1, 2018 Actuarial
Valuation report, dated March 20, 2019
This schedule is presented as required, however,
until a full 10-year trend is compiled, information is presented for those
years available.
Pa�� 30 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF INVESTMENT RETURNS
POLICE OFFICERS' PENSION TRUST FUND
Fiscal Year Ended September 30, 2020 2019 2018 2017 2016 2015 2014
Annual money -weighted rate of return, net of
investment expenses 8.30% 2.93% 8.92% 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.
Pa�� 31 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY (ASSET) AND
RELATED RATIOS
GENERAL EMPLOYEES' PENSION TRUST FUND
Measurement Date, September 30,
Total Pension Lability
Service cost
Interest
Benefit changes
Difference between actual and 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
2020 2019 2018 2017 2016 2015 2014
$ 547,702 $ 461,164 $ 4471305 $ 380,051 $ 3591231 $ 300,325 $ 2781029
468,322 425,911 373,859 329,590 285,954 253,701 216,124
1011865 (156,013) 66,509 (112,103) (40,094) (157,539) -
127,729 - - 362,784 - - -
(161,419) (160,588) (79,332) (41,859) (16,657) (11,918) (8,534)
(53,330) (48,114) (27,837) (13,511) (16,161) (5,959) (41454)
1,0301869 522,360 7801504 904,952 5721273 3781610 4811165
6,249,987 51727,627 4,9471123 4,042,171 31469,898 3,091,288 216101123
$ 7,280,856 $ 612491987 $ 517271627 $ 4,947,123 $ 41042,171 $ 3,469,898 $ 310911288
Contributions - employer and State
$ 391,341
$ 362,848
$ 350,412
$ 305,931
$ 201,704
$ 194,376
$ 1841627
Contributions - member
180,175
161,553
156,434
143,361
134,829
115,288
100,560
Net investment income
615,311
235,519
417,228
562,828
191,848
(36,136)
308,314
Benefit payments
(161,419)
(160,588)
(79,332)
(41,859)
(16,657)
(11,918)
(8,534)
Refunds
(53,330)
(48,114)
(27,837)
(13,511)
(16,161)
(5,959)
(41454)
Administrative expense
(54,652)
(48,241)
(43,300)
(37,296)
(44,359)
(38,098)
(25,678)
Net Change in Plan Fiduciary Net Position
917,426
502,977
77305
919,454
4511204
217,553
554,835
Plan Fiduciary Net Position - Beginning
6,211,730
51708,753
4,9351148
45015,694
3,564,490
3,346,937
217921102
Plan Fiduciary Net Position - Ending (b)
$ 7,129,156
$ 65211,730
$ 5,7081753
$ 4,935,148
$ 45015,694
$ 3,564,490
$ 313465937
Net Pension Liability (Asset) - Ending (a) - (b)
$ 151,700
$ 38,257
$ 181874
$ 11,975
$ 261477
$ (94,592) $ (255,649)
Plan Fiduciary Net Position as a Percentage
of Total Pension Liability
97.92%
99.39%
99.67%
99.76%
99.34%
102.73%
108.27%
Covered Payroll
$ 303,500
$ 31231,060
$ 3112800
$ 218675220
$ 2,6965572
$ 2,305,760
$ 2,011,191
Net Pension Liability (Asset) as a Percentage
of Covered Payroll
4.21%
1.18%
0.60%
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.
Pa�1 32 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF VILLAGE CONTRIBUTIONS
GENERAL EMPLOYEES' PENSION TRUST FUND
Fiscal Year Actuarially Contribution Actual
Ended Determined Actual Deficiency Covered Contribution as a %
September 30, Contribution Contribution (Excess) Payroll of Covered Payroll
2014
$ 1841627 $
1841627 $
- $ 21011,191
9.18%
2015
1941376
194,376
- 21305,760
8.43%
2016
2011704
201,704
- 21696,572
7.48%
2017
235,972
3051931
(69,959) 2,867,220
10.67%
2018
3501412
3501412
- 311281680
11.20%
2019
3621848
362,848
- 31231,060
11.23%
2020
3919341
3911341
- 396039500
10.86%
Notes to Schedule
Valuation Date
10/01/2018
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
Aggregate method
Amortization method
N/A
Remaining amortization period
N/A
Asset valuation method
5-year smoothed market
Inflation
2.50%
Salary increases
6.0%, including inflation
Investment rate of return
7.00%
Rate of retirement
100% when first eligible for normal retirement; 5% for each year eligible
for early retirement.
Mortality
RP-2000 Combined Healthy Participant Mortality
Table (for pre -retirement mortality) and the PR-2000 Mortality Table for
Annuitants (for post -retirement mortality), with mortality improvements
projected to all future years after 2000 using Scale BB.
For males, the base mortality rates include a 50% blue collar adjustment and a
50% white collar adjustment. For females, the base mortality rates include a
100% white collar adjustment. Same rates used for a Regular Class members
of the FRS in the July 1, 2017 Actuarial Valuation Report, as mandated by
Chapter 112.63, Florida Statutes.
Other information
See discussion of valuation results from the October 1, 2018 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.
Pa�� 33 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF INVESTMENT RETURNS
GENERAL EMPLOYEES' PENSION TRUST FUND
Fiscal Year Ended September 30,
Annual money -weighted rate of return, net of
investment expenses
2020 2019 2018 2017 2016 2015 2014
8.83% 3.36% 7.28% 12.52% 3.97% (2.11)% 9.73%
This schedule is presented as required, however, until a full 10-year trend is compiled, the Village is only
representing information for those years for wich information is available.
Pa�� 34 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND
RELATED RATIOUS
OTHER POST -EMPLOYMENT BENEFITS
Measurement Date, September 30,
Total OPEB Lability
Service cost
Interest
Difference between expected and actual experience
Changes of assumptions and other inputs
Benefit payments
Net Change in Total OPEB Liability
Total OPEB Liability - Beginning
Total OPEB Liability - Ending
Covered - Employee Payroll
Total OPEB Liability as a percentage of Covered
Payroll
Notes to Schedule
2019 2018 2017
$ 501439 $
51,371 $
531040
251960
22,929
191739
(309,165)
-
-
12,964
(13,500)
(14,020)
(34,636)
(39,712)
(37,725)
(254,438)
2108
21,034
644,688
623,600
602,566
$ 390,250 $ 64408 $ 62300
$ 7,284,363 $ 604,984 $ 5,7081842
5.36% 9.63% 10.92%
Changes of benefit terms. There were no benefit changes during the year.
Changes of assmptions. Changes of assumptions and other inputs reflect the effect of changes in the
discount rate each period. Discount rate changed to 2.75% from 3.83%.
The following is a select health cost trends:
FY Beginning
2020
6.50%
2021
6.25%
2022
6.00%
2023
5.75%
2024
5.50%
2025
5.50%
2026
5.25%
2027
5.25%
2028
5.00%
Ultimate health cost trend
4.00%
Salary Scale 6.00%
The Village of Tequesta implemented GASB Statement No.75 in fiscal year ending 9/30/218 with a measurement date of
9/30/2017. 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.
Pa�� 35 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
FLORIDA RETIREMENT SYSTEM (FRS)
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
Fiscal Year Ended June 30,
2020
2019
2018
2017
2016
2015
2014
2013
Proportion of the net pension liability
0.00165%
0.00158%
0.00166%
0.00189%
0.00227%
0.00223%
0.00291%
0.00397%
Proportionate share of the net pension
liability
$ 717,034
$ 543,212
$ 501,303
$ 561,097
$ 572,594
$ 2871876
$ 177,517
$ 6831841
Covered payroll
$ 222J 10
$ 2859622
$ 369,696
$ 3919643
$ 492,907
$ 508,785
$ 63506
$ 716,621
Proportionate share of the net pension
liability
as a percentage of its covered payroll
322.83%
190.19%
135.60%
143.27%
116.17%
56.58%
27.93%
95.43%
Plan fiduciary net position as a percentage
of the total pension liability
78.85%
82.61%
84.26%
83.89%
84.88%
92.00%
96.09%
88.54%
The amounts presented for each fiscal year were determined as of 6/30.
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.
Pa�1 36 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
HEALTH INSURANCE SUBSIDY PROGRAM (HIS)
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
Fiscal Year Ended June 30,
2020
2019
2018
2017
2016
2015
2014
2013
Proportion of the net pension liability
0.00090%
0.00094%
0.00113%
0.00121%
0.00160%
0.00168%
0.00214%
0.00247%
Proportionate share of the net pension
liability
$ 109,870
$ 1041854
$ 11902
$ 1291440
$ 18607
$ 171,031
$ 200,044
$ 214,766
Covered payroll
$ 222,110
$ 285,622
$ 369,696
$ 391,643
$ 492,907
$ 508,785
$ 63506
$ 716,621
Proportionate share of the net pension
liability
as a percentage of its covered payroll
49.47%
36.71%
32.41%
33.05%
37.75%
33.62%
31.47%
29.97%
Plan fiduciary net position as a percentage
of the total pension liability
3.00%
2.63%
2.15%
1.64%
0.97%
0.50%
0.99%
178.00%
The amounts presented for each fiscal year were determined as of 6/30.
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.
Pa�9 37 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
FLORIDA RETIREMENT SYSTEM (FRS)
SCHEDULE OF VILLAGE CONTRIBUTIONS
Fiscal Year Ended September 30,
2020
2019
2018
2017
2016
2015
2014
2013
Contractually required contribution
$ 581313
$ 521059
$ 481540
$ 471988
$ 621966
$ 431642
$ 581404
$ 721698
Contributions in relation to the
contractually required contribution
(58,313)
(52,059)
(48,540)
(47,988)
(62,966)
(43,642)
(58,404)
(72,698)
Contribution deficiency (excess)
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
Covered payroll
$ 2331482
$ 261,899
$ 362,908
$ 3821869
$ 4511085
$ 484,772
$ 569,299
$ 6511093
Contributions as a percentage of covered
payroll
24.98%
19.88%
13.38%
12.53%
13.96%
9.00%
10.26%
11.17%
The information in this schedule determined as of the Village's most recent fiscal year.
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.
Pad q 38 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
HEALTH INSURANCE SUBSIDY PROGRAM (HIS)
SCHEDULE OF VILLAGE CONTRIBUTIONS
Fiscal Year Ended September 30,
2020
2019
2018
2017
2016
2015
2014
2013
Contractually required contribution
$ 3,876
$ 41348
$ 6,024
$ 61356
$ 7,488
$ 51381
$ 6,832
$ 81204
Contributions in relation to the
conractually required contribution
(3,876)
(41348)
(6,024)
(61356)
(7,488)
(51381)
(6,832)
(81204)
Contribution deficiency (excess)
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
Covered payroll
$ 2331482
$ 261,899
$ 362,908
$ 3821869
$ 4511085
$ 484,772
$ 569,299
$ 6511093
Contributions as a percentage of covered
payroll
1.66%
1.66%
1.66%
1.66%
1.66%
1.11%
1.20%
1.26%
The information in this schedule determined as of the Village's most recent fiscal year.
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.
Pad � 39 of 496
Agenda Item #2.
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
Page 140 of 496
Agenda Item #2.
NONMAJOR GOVERNMENTAL FUNDS
Page 141 of 496
Agenda Item #2.
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Special revenue funds are used to account for specific revenue sources that are restricted to
expenditures for particular purposes.
Building Fund - This fund accounts for permit fees required on all public or private buildings,
structures, and facilities. The revenue obtained shall be used solely for carrying out
responsibilities in enforcing Florida Building Code.
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 Funds 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.
Pacjd �42 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2020
Special Revenue Capital Projects
Total
Special Law Capital Capital Nonmaj or
Building Enforcement Improvement Proj ects Governmental
Assets
Cash $ 685,023 $ 84,976 $ 32003 $ 68,965 $ 1,158,967
Receivables, net 5 - - - 5
Inventories 201 - - - 201
Prepaid items 21855 - - - 21855
Total Assets $ 68804 $ 84,976 $ 3201003 $ 681965 $ 1,1621028
Liabilities and Fund Balances
Liabilities
Accounts payable
131480
- 11348
121699
27,527
Accrued liabilities
151301
- -
-
15,301
Due to other governments
31370
- -
-
31370
Total Liabilities
321151
- 11348
121699
461198
Fund Balances
Nonspendable Inventories
201
- -
-
201
Nonspendable Prepaid Items
2,855
- -
-
2,855
Restricted for:
Infrastructure
-
- 2401480
-
2401480
Building
6521877
- -
-
652,877
Law Enforcement
-
84,976 -
-
84,976
Capital Projects
-
- 46,485
-
461485
Commited to:
Assigned to:
Capital Projects
-
- 31,690
91703
411393
Subsequent years budget
-
- -
461563
461563
Total Fund Balances
655,933
84,976 3181655
561266
1,115,830
Total Liabilities and Fund Balances $
6881084 $
84,976 $ 3201003 $
681965 $
1,162,028
Pam � 43 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Charges for services
Licenses and permits
Miscellaneous
Grants, contributions and donations
Investment earnings
Revenues
Expenditures
Current:
Public safety
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances - Beginning of Year
Fund Balances - End of Year
Special Revenue
Capital Projects
Total
Special Law
Capital Capital
Nonmaj or
Building Enforcement
Improvement Proj ects
Governmental
Fund Fund
Fund Fund
Funds
$ 215 $ -
$ - $ -
$ 215
385,193 -
- -
385,193
55 -
- -
55
- 4,265
- -
4,265
2,821 232
3,484 -
6,537
66609 1,512 - - 668,401
21,214 - 302,022 981047 421,283
6881103 11512 3021022 981047 110891684
(299,819) 2,985 (298,538) (98,047) (693,419)
L 151 J 30 - 1731585 - 1,324,715
(195,378) - - - (1951,378)
VJJ,7JJ L,,70J k1G1-F,70J) t70,V`F /) `FJJ,710
$ 6551933 $ 84,976 $ 3181655 $ 561266 $ 1,1151830
Pacjd 144 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
BUILDING FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Revenues
Charges for services
Licenses and permits
Miscellaneous
Investment earnings
Total Revenues
Expenditures
Public safety
Capital outlay
Total Expenditures
(Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance - Beginning
Fund Balance - Ending
Variance
with Final
Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
215 $
215
- 50800
3851193
(122,807)
- -
55
55
- -
2,821
2,821
- 5081000
3885284
(119,716)
- 6901291
6661889
23,402
- 261500
21,214
5,286
- 7161791
6881103
2808
- (208,791)
(299,819)
(91,028)
- -
1,151,130
1,151,130
- (195,378)
(195,378)
-
- (195,378)
955,752
1,151,130
- (404,169)
655,933
1,060,102
$ - $ (404,169) $
655,933 $
1,060,102
Pam � 45 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
SPECIAL LAW ENFORCEMENT TRUST FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Variance
with Final
Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues
Grants, contributions and donations $ - $ - $ 4,265 $ 4,265
Investment earnings
Total Revenues
Expenditures
Public safety
Capital outlay
Total Expenditures
Net Change in Fund Balance
Fund Balance - Beginning
Fund Balance - Ending
- 2,296
- 2,296
- (21296)
$ 871034 $ 84,738 $
4,497 4,497
1,512 784
1,512 784
21985 5,281
81,991 (5,043)
Pam � 46 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
CAPITAL IMPROVEMENT FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Variance
with Final
Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues
Investment earnings
Total Revenues
Expenditures
Capital outlay
Total Expenditures
(Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses)
Transfers in
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance - Beginning
Fund Balance - Ending
- - 31484 3,484
- 349,775 3021022 47,753
- 3491775 3021022 47,753
- (349,775) (298,538) 51,237
127,100
127,100
127,100 1731585 46,485
1271100
(222,675)
(124,953)
97,722
4751919
4751919
4431608
(32,311)
$ 603,019 $
2531244 $
318,655
$ 65,411
Pam � 47 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
CAPITAL PROJECTS FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Revenues
Expenditures
Leisure services
Capital outlay
Total Expenditures
Net Change in Fund Balance
Fund Balance - Beginning
Fund Balance - Ending
Variance
with Final
Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 15400 $
- $
- $
-
-
1541000
98,047
55,953
1549000
1541000
98,047
551953
(154,000)
(154,000)
(98,047)
551953
(45,686)
(45,686)
154,313
199,999
$ (199,686) $
(199,686) $
56,266 $
255,952
Pam 148 of 496
Agenda Item #2.
FIDUCIARY FUNDS
Page 149 of 496
Agenda Item #2.
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.
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.
Pam 9 50 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2020
Assets
Cash and cash equivalents
Investments
Equities
Fixed Income
Real Estate Fund
Total investments
Accounts receivable
Contributions receivable
Accrued interest receivable
Prepaid items
Total Assets
Liabilities
Accounts payable
Due to broker
Total Liabilities
Net Position Restricted for
Pension Benefits
Police General
Firefighters' Officers' Employees'
Pension Pension Pension
Trust Fund Trust Fund Trust Fund Total
$ 199,893 $ 97M26 $ 411678 $ 338,597
81665,406 4041574 418421805 171592,785
3M35,393 1,43000 L6811671 6,147,924
12,643,569 5,959,783 7,0541730 25,65802
1719940
1161626
- 288,566
40,315
31454
271365 71,134
1061
41742
7,513 22,316
181067
41091
131173 35,331
10J84
71635
151303 33J22
1406
61926
- 21,622
2400
141561
151303 54,744
$ 13M58,965 $ 6J71 J61 $ 7J291156 $ 26,359,282
Pa�q 51 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
Police
General
Firefighters' Officers'
Employees'
Pension Pension
Pension
Additions
Contributions:
State of Florida
Employer
Employee
Total Contributions
Investment Earnings
Net appreciation in fair value of
investments
Gain on sale of investments
Interest and dividends
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 of year
End of year
$ 171,939 $
911375 $
-
$ 263,314
4431018
-
391,341
834,359
1011983
70,327
180,175
352,485
716,940
1611702
571,516
114501158
763,139
3591510
500,164
1,622,813
78,198
371676
23,247
139,121
2121077
1021393
1271757
442,227
11053,414
4991579
6511168
212041161
(32,392)
(22,573)
(38,142)
(93J07)
110211022
4771006
613,026
2,1111054
36
32
2,286
2,354
117371998
6381740
1,1861828
3,5631566
2161799
491095
1611419
427,313
81648
421075
53,330
104,053
251874
251874
54,653
106,401
2515321
1171044
269,402
637,767
11486,677
5211696
917,426
2,925,799
M572,288
5164%465
6,211,730
231433,483
$ 1310581965 $
611711161 $
7,129,156
$ 261359,282
Pam � 52 of 496
Agenda Item #2.
STATISTICAL SECTION
Page 153 of 496
Agenda Item #2.
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. 122-126
Revenue Capacity
These schedules contain information to help the reader assess the Village's most significant
local revenue source, the property tax. 127-130
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. 131-134
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. 135-136
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. 137-139
Sources: Unless otherwise noted, the information in these schedules is derived from the
Comprehensive Annual Financial Reports for the relevant year.
Page 154 of 496
Agenda Item #2.
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Page 165 of 496
Agenda Item #2
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Page 167 of 496
Agenda Item #2.
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Page 168 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
PRINCIPAL EMPLOYERS - PALM BEACH COUNTY
CURRENT YEAR AND NINE YEARS AGO
2020 2011**
Percentage of
Percentage of
Total County
Total County
Employer
Employees
Rank
Employment
Employees
Rank
Employment
Palm Beach County School Board
22,049
1
N/A
21,718
1
N/A
Tenet Coastal Division Palm Beach County
61505
2
N/A
5,127
3
N/A
Palm Beach County Government
51438
3
N/A
111381
2
N/A
NextEra Energy / Florida Power & Light
41807
4
N/A
3,658
5
N/A
Florida Atlantic University
21898
5
N/A
2,776
7
N/A
Hospital Corporation of America (HCA)
206 *
6
N/A
41150
4
N/A
Boca Raton Regional Hospital
21800 *
7
N/A
Veterans Health Administration
21700 *
8
N/A
2,205
9
N/A
The Breakers
21300
9
Bethesda Health, Inc
21282 *
10
N/A
2,300
8
Wackenhut Corporation
300
6
N/A
Boca Raton Resort and Club
29200
10
N/A
54,585
N/A
58,515
N/A
Source: Business Development Board ofPalm Beach County
Employment information for the Town is not available
N/A = not available
* Updated figures unavailable at date of publication.
** Updated figures for 2011 not published, information used updated 3/2010.
PacjW�69 of 496
Agenda Item #2.
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Page 170 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Governmental Activities
General government
Registered voters
41543
4,676
4,854
4,702
41634
4,813
41017
41951
5,056
51204
Public safety:
No. of full-time certified police officers
19
11 *
18
20
19
18
19
19
19
19
No. of calls received
3,266
31272
31571
3,548
31853
3,109
3,442
31443
3,614
31571
No. of arrests
204
129
136
168
174
94
108
69
61
46
No. of parking violations
82
149
328
120
207
61
39
20
48
48
No. of incident numbers issued
595
622
691
725
552
345
312
254
259
181
Fire department:
No. of full-time certified firefighters
22
21
21
18
22
22
22
22
21
21
No. of emergency responses
1,096
1,155
1,372
11197
11291
1,409
1,286
11227
1,168
1,226
No. of transports
622
695
675
693
11006
817
722
724
721
11017
No. of fires extinguished/alarms
474
460
697
504
285
254
309
267
206
15
No. of inspections
462
495
539
713
499
654
742
608
767
405
Building, zoning:
No. of building permits issued
800
883
914
929
11034
1,583
19755
11356
1,226
11198
No. of building inspections conducted
1,728
1,931
21176
2,201
1,705
2,472
31017
21634
2,649
2,611
Leisure services:
No. of Spring Classes
10
10
10
8
8
12
10
10
10
7
No. of Summer Classes
4
4
4
4
4
4
4
4
4
-
No. of Movies
3
3
3
4
3
3
3
3
2
-
Business -type Activities
Water:
No. of customers
51019
41996
51037
5,039
51038
51055
5,042
59087
5,084
59070
Average daily consumption
2.698 mg 2.550 mg
2.454 mg 2.422 mg
2.500 mg 2.600 mg 2.700 mg 2.781 mg 2.642 mg 2.656 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.
PacjW 171 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Function/Program
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
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
15
11
10
11
10
12
10
12
11
11
Fire:
No. of stations
1
1
1
1
1
1
1
1
1
2
No. of ambulances
3
3
3
3
2
2
2
2
2
2
No. of pumpers
3
3
3
3
3
3
2
2
2
2
Transportation:
Miles of street lane miles
24
24
24
24
24
24
24
24
24
24
No. of bridges
1
1
1
1
1
1
1
1
1
1
Leisure services
No. of parks
5
5
5
6*
6
6
7
7
7
7
No. of park acreage
54
54
54
62 *
62
62
62
62
62
62
No. of playgrounds
2
2
2
2
2
2
2
2
2
2
No. of baseball/softball diamonds
3
3
3
3
3
3
3
3
3
3
No. of skate -parks
1
1
1
1
1
1
1
1
1
1
Business -type activities:
Water:
Miles of water mains
72
72
73
73
73
77
77
77
77
72
No. of fire hydrants
430
430
433
409
430
456
435
435
435
579
31250
31250
29750
29750
21750
21750
2,750
21750
21750
21750
Storage capacity (thousands of gallons)
Sources: Various Village departments
* The green area has been identified as a park (Linear/Green Mile park)
PacjW972 of 496
Agenda Item #2.
REPORTING SECTION
Page 173 of 496
Agenda Item #2. CUM
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 ma j or 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, 2020, 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 31, 2021.
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) as a basis for designing 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 Village'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.
140
MARCUM GROUP
MEMBER
Marcum ALP 525 Okeechobee Boulevard Suite 750 West Palm Beach, Florida 33401 Phone 561.653.7300 Fax 561.653.7301 Pffff9"AP&W96
Agenda Item #2.
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.
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 financial statements. 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 result 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 Village's
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
`Y avd"c LL f
West Palm Beach, Florida
March 31, 2021
141
Page 175 of 496
Agenda Item #2. CUM
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, 2020, and have issued our report thereon dated
March 31, 2021.
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 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 31, 2021, should be considered in
conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(01., 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. The status of recommendations made in the preceding
annual financial audit report have been addressed in the accompanying Appendix A to this
report.
Official Title and Legal Authority
Section 10.554(1)(1)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.
142
MARCUM GROUP
MEMBER
Marcum ALP 525 Okeechobee Boulevard Suite 750 West Palm Beach, Florida 33401 Phone 561.653.7300 Fax 561.653.7301 Pffff9"?11P&W96
Agenda Item #2.
Financial Condition and Management
Section 10.554(1)(1)5.a. 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 or not the
Village has met one or more of the conditions described in Section 218.503(1), 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(1), Florida
Statutes.
Pursuant to Sections 10.554(1)(i)5.b. 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 review of financial information provided by
same. Our assessment was performed as of the fiscal year end.
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any
recommendations to improve financial management. In connection with our audit, we did
identify an item reported in the accompanying Appendix A.
Additional Matters
Section 10.554(1)(i)3 ., Rules of the Auditor General, requires us to communicate 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, please
see the accompanying Appendix A.
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, the Mayor and the Village Council, and
applicable management, and is not intended to be and should not be used by anyone other than
these specified parties.
W 0,WiC L I- �
West Palm Beach, FL
March 31, 2021
143
Page 177 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
APPENDIX A — CURRENT YEAR AND PRIOR YEARS RECOMMENDATIONS TO
IMPROVE FINANCIAL MANAGEMENT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
MLC 2019-001—UTILITY BILLING RATES
Prior Year's Observation
During our utility billings and collections testing, Marcum noted discrepancies between the
authorized/approved utility rates being charged/billed to customers. The exception related to the
"W2C-3/4" and "fond -Condos" (represents approximately codings still being charged the rates
that were effective October 1, 2017 versus that rates that were approved to be effective October
11 2018. These two account codes represent approximately 4.6% of total accounts as of
September 30, 2019. All utility bills should be processed with the authorized rates listed in the
appropriate Ordinance approved by Village Council. Improper billing rates could create "over-
billing(s)" and "under-billing(s)"; in this case, an under billing.
Prior Year's Recommendation
Marcum recommends that an internal control be developed to ensure that accurate data is input
into the utility billing system. Authorized rates used by the Utility Billing Division, should be
reviewed and compared against the corresponding Ordinance(s). This should reduce the
incidence of discrepancies between the authorized rates and the rates charged/billed on the
Village customer's utility bills. Additionally, if feasible and allowed by law, the Village should
consider trying to recover any under billing.
Management's Response in the Prior Year
The Village has since reviewed the authorized rate for all customers and has put procedures in
place to periodically review changes that are made by the Customer Service Division. The
Utilities Director will be responsible for reviewing changes that are made by subordinate staff.
Current Year's Status
The Village has since addressed this observation.
144
Page 178 of 496
Agenda Item #2.
VILLAGE OF TEQUESTA, FLORIDA
APPENDIX A — CURRENT YEAR AND PRIOR YEARS RECOMMENDATIONS TO
IMPROVE FINANCIAL MANAGEMENT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
MLC 2019-002 —MINIMUM FUND BALANCE POLICY
Prior Year's Observation
The Village Council adopted a fund balance policy in order to maintain a minimum level of
unassigned fund balance in the general fund. The target level is set a two months of general fund
operating expenditures. If the minimum fund balance falls below that required of the policy, the
Village has three (3) fiscal years in order to replenish the unassigned fund balance. Since
September 3, 2017, the unassigned fund balance has been below the minimum target level.
Prior Year's Recommendation
Essentially, by September 30, 2020, the unassigned fund balance should be replenished to
comply with the minimum fund balance policy. However, given the current pandemic, the
Village may fall short of its policy and should revisit its policy and/or the upcoming budget so to
not fall too far below its policy.
Management's Response in the Prior Year
During the budgeting process for the upcoming fiscal year, Management proposed several
measures to address the shortfall in the unassigned fund balance.
Current Year's Status
Recommendation remains the same as prior year noted above.
Management's Response in the Current Year
During the budgeting process for the upcoming fiscal year, Management will continue to impose
the measures that have been previously included, and propose any necessary additional
measures, to address the shortfall in the unassigned fund balance.
145
Page 179 of 496
Agenda Item #2.
MtRcum
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, 2020. 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, 2020.
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.
PYa&&14,C L I- �
West Palm Beach, FL
March 31, 2021
M/\RCUM GROUP
MEMBER
146
Marcum LLP 525 Okeechobee Boulevard Suite 750 West Palm Beach, Florida 33401
Phone 561.653.7300 Fax 561.653.7301 P'1'gN1'dP$96