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HomeMy WebLinkAboutDocumentation_Regular_Tab 04_4/14/2022Agenda Item #4. Regular Council STAFF MEMO Meeting: Regular Council - Apr 14 2022 Staff Contact: Jeffery Snyder Department: Finance Accept the Annual Comprehensive Financial Report Year End September 30, 2021 The Finance Department has completed the Annual Comprehensive Financial Report (ACFR) - formerly called the Comprehensive Annual Financial Report, (CAFR). This name change has been required by the Government Finance Officers Association which is responsible for the Certificate of Achievement for Excellence in Financial Reporting which the Village has received for 39 consecutive years. The state requires that the ACFR be audited by an independent CPA Firm annually. The Village hired a new firm for the Fiscal Year (FY) 2021. Our new auditor's Mauldin and Jenkins will have a brief presentation of the results of the Village's year and the results of the audit. There will be a representative available for questions. This document and any attachments may be reproduced upon request in an alternative format by completing our Accessibility Feedback Form, sending an e-mail to the Village Clerk or calling 561-768-0443. BUDGETED AMOUNT: N/A AVAILABLE AMOUNT: N/A EXPENDITURE AMOUNT: N/A Additional Budgetary Information: Funding Source(s): N/A N/A Staff recommends accepting the FY 2021 ACFR. 2021 Financial Statements - Village of Teauesta ADA Teauesta Presentation Page 13 of 501 • ,►�' :.. � � �" ji �t ►.- �3��� _ ate' '-ur r _ _ Agenda Item #4. 2021 Village of Tequesta Council L to R: Council Member Bruce Prince, Mayor Frank D'Ambra III, Vice -Mayor Kyle Stone, Council Member Molly Young, Council Member Laurie Brandon Page 15 of 501 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Prepared By Finance Department The Village of Tequesta, Florida Page 16 of 501 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA TABLE OF CONTENTS I. INTRODUCTORY SECTION Letter of Transmittal i-v Certificate of Achievement for Excellence in Financial Reporting vi Organization Chart vii List of Principal Officials viii 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 30-99 REQUIRED SUPPLEMENTARY INFORMATION Budgetary Comparison Schedule— General Fund 100 Note to the Budgetary Comparison Schedule 101 Firefighters' Pension Trust Fund Schedule of Changes in the Village's Net Pension Liability and Related Ratios 102 Schedule of Village Contributions 103 Schedule of Investment Returns 104 Police Officers' Pension Trust Fund Schedule of Changes in the Village's Net Pension Asset and Related Ratios 105 Schedule of Village Contributions 106 Schedule of Investment Returns 107 General Employees' Pension Trust Fund Schedule of Changes in the Village's Net Pension Liability (Asset) and Related Ratios 108 Schedule of Village Contributions 109 Schedule of Investment Returns 110 Schedule of Changes in Total OPEB Liability and Related Ratios III Schedule of Village's Proportionate Share of the Net Pension Liability — Florida Retirement System Pension 112 Schedule of the Village's Proportionate Share of the Net Pension Liability — Retiree Health Insurance Subsidiary Program 113 Schedule of the Village's Contributions — Florida Retirement System Pension Plan 114 Schedule of the Village's Contributions — Retiree Health Insurance Subsidy Program 115 Page 17 of 501 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA TABLE OF CONTENTS 11. FINANCIAL SECTION (CONTINUED) SUPPLEMENTARY INFORMATION Combining and Individual Fund Statements and Schedules Combining Balance Sheet — Nonmajor Governmental Funds 116 Combining Statement of Revenues, Expenditures and Changes in Fund Balances — Nonmajor Governmental Funds 117 Budgetary Comparison Schedule — Building Fund 118 Budgetary Comparison Schedule — Special Law Enforcement Trust Fund 119 Budgetary Comparison Schedule — Capital Improvement Fund 120 Budgetary Comparison Schedule — Capital Projects Fund 121 Combining Statement of Fiduciary Net Position 122 Combining Statement of Changes in Fiduciary Net Position 123 III. STATISTICAL SECTION Net Position by Component 124 Changes in Net Position 125-126 Fund Balances, Governmental Funds 127 Changes in Fund Balances, Governmental Funds 128 Assessed and Estimated Actual Value of Taxable Property 129 Property Tax Rates — All Direct and Overlapping Governments 130 Principal Property Taxpayers 131 Property Tax Levies and Collections 132 Ratios of Outstanding Debt by Type 133 Ratio of Net Outstanding Debt to Assessed Value and Net Bonded Debt Per Capita 134 Computation of Legal Debt Margin 135 Direct and Overlapping Governmental Activities Debt 136 Demographic and Economic Statistics 137 Principal Employers — Palm Beach County 138 Full -time -Equivalent Village Government Employees by Function/Program 139 Operating Indicators by Function/Program 140 Capital Asset Statistics by Function/Program 141 TV. 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 142-143 Independent Auditor's Report on Compliance for each Major Federal Program and on Internal Control over Compliance 144-145 Schedule of Expenditures of Federal Awards and State Financial Assistance 146 Notes to the Schedule of Expenditures of Federal Awards and State Financial Assistance 147 Schedule of Findings, Questioned Costs and Responses 148-150 Management Letter in Accordance with the Rules of the Auditor General of the State of Florida 151-152 Independent Accountants' Report On Compliance Pursuant To Section 218.415 Florida Statutes 153 Page 18 of 501 Agenda Item #4. INTRODUCTORY SECTION Page 19 of 501 Agenda Item #4. Village of Tequesta 345 Tequesta Drive Tequesta, FL 33469 9� H COU March 16, 2022 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 Annual Comprehensive Financial Report of the Village of Tequesta, Florida (the Village), for the fiscal year ended September 30, 2021. 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 Annual Comprehensive 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. Mauldin & Jenkins, Certified Public Accountants, have issued an unmodified ("clean") opinion on the Village of Tequesta's financial statements for the fiscal year ended September 30, 2021. The independent auditors' report is located at the front of the financial section of this report. Management's discussion and analysis (MD&A) immediately follows the independent auditors' report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it. Page 20 of 501 Agenda Item #4. 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. Services Provided 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. Accounting and Internal Control Management of the City is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with Page 21 of 501 11 Agenda Item #4. accounting principles generally accepted in the United States of America. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. Single Audit As a recipient of federal, state and county financial assistance, the Village is also responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. The Village was subject to an audit in accordance with the Uniform Guidance or the Florida Single Audit Act for the fiscal year ended September 30, 2021 under the provisions of the U.S. Office of Management and Budget Compliance Supplement (Uniform Guidance) and the Rules of the Auditor General, State of Florida. The information related to the Single Audit, including the schedule of expenditure of federal awards and state projects, schedule of findings and questioned costs, and auditors' reports on the internal control over compliance and compliance with applicable laws and regulations are included in a separate report. This report disclosed no instances of material weaknesses in internal control over financial reporting and over compliance, or significant violations of applicable laws and regulations. Budgetary Controls The Council is required to adopt an initial budget prior to the beginning of the fiscal year October 1. In accordance with state laws the Approved Budget is posted on the Village's website within 30 days of adoption. This annual budget serves as the foundation for the Village of Tequesta's financial planning and control. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the Village's governing body. Activities of the General Fund, Special Revenue Funds, and Capital Project Funds are included in the annual appropriated budget. 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. The Village maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Encumbered amounts lapse at year-end. However, encumbrances generally are re -appropriated as part of the following year's budget adoption. Local Economy and COVID-19 impact The Village, located in Palm Beach County, which is the third most populous county in the State of Florida (approximately 1.5 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 6,152. 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. Below is a new forecast for the state's economy by Florida Economic Estimating Conference met on December 20, 2021. COVID-19 economic disruption will still be evident over the next few years, however, the new forecast solidifies the outlook for a sustained recovery from the pandemic. While all Florida industries were impacted by the pandemic, Florida's leisure and hospitality industry has a longer -term impact. The total number of tourists declined nearly 70% from the prior year in the second quarter of 2020. After that dramatic drop, tourism managed to recover to 96% of the last full pre-COVID quarter by the third quarter of calendar year 2021. The Conference expects growth during Fiscal Year 2021-22, with a projected overall increase of 36% from the extremely suppressed level in Fiscal Year 2020-21. Page 22 of 501 iii Agenda Item #4. The Conference highlighted the substantial risk arising from the current inflationary pressures on its outlook for consumer spending. The State's unemployment rate dropped to 5.1% by December 2020 and 4.5% by November 2021. The Conference expects it to average 4.3% in Fiscal Year 2021-22. The rate continues its downward drift until it reaches 3.4% in the 2022-23 and 2023-24 fiscal years, after which it slowly rises to plateau at 4%. Another important element of a state's economic health is personal income growth. In the first quarter of the 2021 calendar year, Florida's personal income growth shot up 65.1%, largely due to two different federal stimulus and relief programs converging in the quarter. As the federal support measures began to expire, the state's personal income plummeted to an annualized -19.6% in the second quarter of the 2021 calendar year to produce a final growth rate for the 2020-21 fiscal year of 7.5%, the highest rate since 2015. Thereafter, annual growth rates are expected to remain solidly at or above 4%. The housing market thrived as the federal funds rate neared zero and pushed interest rates to historical lows. Housing starts grew by 21% in Fiscal Year 2020-21, and they are projected to grow by another 5.6% in Fiscal Year 2021-22. 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 $1.173 billion during fiscal year 2020 to $1.227 billion used to calculate fiscal year 2021 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 opportunities and partnerships in an effort to control cost while improving services and equipment. MAJOR INITIATIVES • Continue to explore alternative revenue sources, at both the state and federal level, with the assistance of grant writers and other professional consultant services. • Develop long-term funding strategy for Parks and Green Spaces. • Strengthen our relationships with local businesses to recruit and retain businesses in the Village. • Plan and fund long-term Building Maintenance program. • Develop a sustainable business plan for the new Recreation Center. • Progress annual street maintenance program. • 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. Page 23 of 501 iv Agenda Item #4. AWARDS AND ACKNOWLEDGEMENTS The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Village for its annual comprehensive financial report for the fiscal year ended September 30, 2020. This was the thirty-ninth consecutive year that the Village has received this prestigious award. The Village must publish an easily readable and efficiently organized annual comprehensive 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 annual comprehensive 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 completion 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, •mn, CPM Village Manager Hugh B. Dunkley, CPA, CGFO Finance Director v Page 24 of 501 Agenda Item #4. Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Village of Tequesta Florida For its Annual Comprehensive Financial Report For the Fiscal Year Ended September 30, 2020 Executive Director/CEO vi Page 25 of 501 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA ORGANIZATION CHART SEPTEMBER 30, 2021 vii Page 26 of 501 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA Frank D'Ambra, III Kyle Stone Laurie Brandon Bruce Prince Molly Young LIST OF PRINCIPAL OFFICIALS SEPTEMBER 30, 2021 VILLAGE COUNCIL VILLAGE OFFICIALS Jeremy Allen, CPM Corbett, White, Davis & Ashton, PA Lori McWilliams, MMC Hugh Dunkley, CPA, CGFO Jim Trube Gus Medina Merlene Reid, Ed.D., SPHR NZ Consultants, Inc. Jose Rodriguez Greg Corbitt Matthew Hammond, PE Mayor Vice -Mayor Councilmember Councilmember Councilmember Village Manager Village Attorney Village Clerk Finance Director Fire Chief Police Chief Human Resources Director Planning and Zoning Director Building Director Parks and Recreation Director Utilities Director VILLAGE INDEPENDENT AUDITORS Mauldin & Jenkins, LLC Page 27 of 501 Agenda Item #4. FINANCIAL SECTION Page 28 of 501 Agenda Item #4. INDEPENDENT AUDITORS' REPORT Page 29 of 501 A � AULDIN & ENKINS CPAs & ADVISORS INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor, Village Council and Village Manager Village of Tequesta, Florida Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the Village of Tequesta, Florida (the "Village"), as of and for the year ended September 30, 2021, 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. Auditor's 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 auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 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, 2021, and the respective changes in financial position and, where applicable, cash flows thereof, for the year then ended in accordance with accounting principles generally accepted in the United States of America. 1401 MANATEE AVENUE WEST, SUITE 1200 • BRADENTON, FLORIDA 34205 • 941-747-4483 • 855-891-0070 • FAX 941-747-6035 • www.mjepa.com Members of The American Institute of Certified Public Accountants Page 30 Of 50 Agenda Item #4. 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 General Fund Budgetary Comparison Schedule, the Schedule of Changes in the Net Pension Liability (Asset) and Related Ratios, the Schedule of Village Contributions, the Schedule of Investment Returns, the Schedule of Changes in the Total OPEB Liability and Related Ratios, and the Schedules of Proportionate Share of the Net Pension Liability (on pages 96 through 111) be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village's basic financial statements. The combining and individual fund statements and schedules and the introductory and statistical sections are presented for purposes of additional analysis and are not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and is also not a required part of the basic financial statements of the Village. The combining and individual fund statements and schedules and the Schedule of Expenditures of Federal Awards 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 auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund statements and schedules and the Schedule of Expenditures of Federal Awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Page 31 of 501 2 Agenda Item #4. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 16, 2022, 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. Bradenton, Florida March 16, 2022 qaac&t, , 0��e Page 32 of 501 3 Agenda Item #4. MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) Page 33 of 501 Agenda Item #4. Management's Discussion and Analysis 2021 Village of Tequesta, Florida Management's Discussion and Analysis As management of the Village of Tequesta, we offer readers of the Village's financial statements this narrative overview and analysis of the financial activities of the Village for the fiscal year ended September 30, 2021. 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 Hip-h1h!hts • 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 $40,053,018. Of total net position, 38.6% ($15,473,139) 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 increased by $4,107,315. The business -type activities net position increased by $831,157, due mainly to an increase in connection fees for new developments as well as a decrease in expenses for the Water Distribution Division due to completion of the automated meter reading project. • At the close of the current fiscal year, the Village of Tequesta's governmental funds reported a change in combined fund balances of $5,632,894. • At the end of the current fiscal year, total fund balance for the general fund was $6,206,380, or 46.6% of general fund operating expenditures and other financing uses. Of this balance, $732,800 was non -spendable for inventories and prepaid expenditures; $561,007 was restricted for debt service and $500,000 was committed to hurricane/disaster relief; $55,709 was assigned for the subsequent year's budget; and $4,356,864, or 32.7% of general fund operating expenditures and other financing uses was unassigned. At the end of the fiscal year, unrestricted fund balance (the total of the committed, assigned and unassigned components of fund balance) reported in the general fund was $4,912,573. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the Village of Tequesta's basic financial statements. The Village's basic financial statements consist of three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also includes supplementary information intended to furnish additional detail to support the basic financial statements themselves. Government -wide Financial Statements: The government -wide financial statements are designed to provide readers with a broad overview of the Village of Tequesta's finances, in a manner similar to a private -sector business. The statement of net position presents financial information on all of the Village of Tequesta's assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over Page 34 of 501 4 Agenda Item #4. Management's Discussion and Analysis 2021 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 cashflows. Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government -wide financial statements distinguish functions of the Village of Tequesta that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the Village includes general government, public safety, transportation and leisure services. The business -type activities of the Village includes water, stormwater and refuse and recycling. The government -wide financial statements can be found on pages 19-20 of this report. Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Village of Tequesta, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. All of the funds of the Village of Tequesta can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near-terin inflows and outflows 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 and Capital Projects Fund which are considered major funds. Data from the other three governmental funds is combined into a single aggregated presentation. Individual fund data for each of these non -major governmental funds is provided in the form of combining statements in the combining and individual fund statements and schedules section of this report. The Village of Tequesta adopts an annual appropriated budget for its governmental funds. A budgetary comparison schedule has been provided for the General Fund to demonstrate compliance with this budget. The Village of Tequesta's governmental fund financial statements can be found on pages 21-24 of this report. Proprietary Funds. The Village of Tequesta maintains one type of proprietary fund — enterprise funds. Enterprise funds are used to report the same functions presented as business -type activities in the Page 35 of 501 5 Agenda Item #4. Management's Discussion and Analysis 2021 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 nonmajor fund. The basic proprietary fund financial statements can be found on pages 25-27 of this report. Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the Village. Fiduciary funds are not reported in the government -wide financial statement because the resources of those funds are not available to support the Village's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The Village of Tequesta maintains one type of fiduciary fund — a Pension trust fund which is used to report resources held in trust for retirees and beneficiaries covered by the Public Safety Pension Plan (which includes the Firefighters' Pension Trust Fund and the Police Officers' Pension Trust Fund) and the General Employees' Pension Plan. The fiduciary fund financial statements can be found on pages 28-29 of this report. Notes to basic financial statements: The notes provide additional information that is necessary to acquire a full understanding of the data provided in the government -wide and fund financial statements. The notes to the basic financial statements can be found on pages 30-99 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 100-115 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 $40,053,018 at the close of the 2021 fiscal year. Net Position in governmental activities recorded an increase of 30.08%. The Village's business -type activities recorded a 3.87% increase in total net position. The majority of this change was due to a change of current and other assets by $6,210,643 as well as an increase in capital assets of $4,289,665. Noncurrent liabilities also increased by $6,404,154. The increase in current and other assets as well as the increase in non -current liabilities were primarily related to the issuance of long-term notes for construction of a new community center at Constitution Park. Page 36 of 501 6 Agenda Item #4. Management's Discussion and Analysis 2021 Current and other assets $ 12.907,656 $ 6,697,013 $ 7,637,085 $ 7,978,407 $ 20,544,741 $ 14,675,420 Capital assets, net 15,854,015 11,564,350 18,133,873 17,423,098 33,987,888 28,987,448 Total assets 28,761,671 18,261,363 25,770,958 25,401,505 54,532,629 43,662,868 Total deterred outflows of resources 2,078,861 2,301,042 573,963 562,687 2,652.824 2,863,729 Noncurrent liabilities 10,754,387 4,350,233 3,166,641 3,626,914 13,921,028 7,977,147 Other liabilities 1,500,104 1,209,304 396,547 708,784 1,896,651 1,918,088 Total liabilities 12,254,491 5,559,537 3,563,188 4,335,698 15,817,679 9,895,235 Total deferred inflows oft esources 825,347 1,349,489 489,409 167,327 1,314,756 1,516,916 Net position Net investment in capital assets 7,103,735 10,473,238 15,470,616 14,166,351 22,574,351 24,639,589 Restricted Infrastructure 59,172 240,480 - - 59,172 240,480 Debt Service 561,007 420,583 376,728 397,997 937,735 818,580 Building 864,932 652,977 - - 864,932 652,877 Law Enforcement 143,689 84,976 - - 143,689 84,976 Unrestricted 9,028,159 1,781,225 6,444,990 6,896,819 15,473,139 8,678,044 Total not position $ 17,760,694 $ 13,653,379 $ 22,292,324 $ 21,461.167 $ 40,053,018 $ 35,114,546 The largest portion of the Village's total net position (56.4%) 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 (5.0%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of $15,473,139 is unrestricted and maybe 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 37 of 501 7 Agenda Item #4. Management's Discussion and Analysis 2021 Restricted Unrestricted Net Investment in capital assets Village of Tequesta Components of Net Position $- $10,000,000 $20,000,000 $30,000,000 ■ 2020 ■ 2021 Page 38 of 501 Agenda Item #4. Management's Discussion and Analysis 2021 Revenues: Program Revenues: Charges for Services Operating Grants & Contributions Capital Grants & Contributions General Revenues: Ad valorem Taxes Other Taxes Franchise fees on gross receipts Unrestricted intergovernmental Unrestricted investment earnings Gain (loss) on sale of capital assets Other Miscellaneous Total Revenues Expenses: General government Public safety Transportation Leisure Services Interest expense/other fiscal charges Water utility services Stormwater services Refuse & recycling services Total Expenses Village of Tequesta's Changes in Net Position $ 4,358,422 $ 2,729,630 $ 7,578,612 $ 7,290,781 $ 11,937,034 $ 10,020,411 1,739,997 113,992 - - 1,739,997 113,992 - - 19,157 19,157 - 7,848,744 7,497,093 - 7,848,744 7,497,093 1,966,890 1,711,817 1,966,890 1,711,817 509,963 447,682 509,963 447,682 901,243 807,939 - 901,243 807,939 13,296 54,602 7,917 59,333 21,213 113,935 26,524 21,976 29,834 - 56,358 21,976 547949 19,996 64,074 46.014 119,023 66,010 17,420,028 13,404,727 7,699,594 7,396,128 25,119,622 20,800,855 3,121,260 2,353,750 3,121,260 2,353,750 7,507,748 8,806,935 7,507,748 8,806,935 1,944,570 1,496,229 1,944,570 1,496,229 701,364 675,172 701,364 675,172 59,662 44,058 131,391 146,800 191,053 190,858 - - 5,679,124 5,817,402 5,679,124 5,817,402 524,732 453,776 524,732 453,776 - - 511,299 496,619 511,299 496,619 13,334,604 13,376,144 6,846,546 6,914,597 20,181,150 20,290,741 Increase in net position before transfers 4,085,424 28,583 853,048 481,531 4,938,472 510,114 Transfers 21,891 - (21,891) - - Increase in net position 4,107,315 29,583 831,157 $ 481,531 4,938,472 510,114 Netposition- beginning 13,653,379 13,624,796 21,461,167 20,979,636 35,114,546 34,604,432 Net position - ending $ 17,760,694 $ 13,653,379 $ 22,292,324 $ 21,461,167 $ 40,053,018 $ 35,114,546 For fiscal year ended September 30, 2021, the Village of Tequesta's overall net position increased from the prior fiscal year. Revenues increased in the governmental activities as well as in business -type activities. Combined entitywide revenues exceeded expenses for fiscal year ended September 30, 2021 by $4,938,472. Revenues increased in governmental activities as a result of increased property taxes, increased building permit/land development fees and increased intergovernmental revenues. Revenues increased in business -type activities due mainly to an increase in connection fees related to new residential developments. Governmental Activities - Expenses and Program/General Revenues Governmental activities. As previously stated, overall revenue from governmental activities increased from the prior year due to an increase in property tax revenue, intergovernmental revenue, and building permit/land development fees. The increase in property tax revenue was primarily due to increases in property values. These increases allowed for an overall increase in net position of $4,107,315. Page 39 of 501 9 Agenda Item #4. Management's Discussion and Analysis 2021 Expenses and Program/General Revenues - Governmental Activities In Thousands $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 ■ Revenues ■ Expenses The Village's programs/functions include General Government, Public Safety, Transportation and Leisure Services. The net cost shows the extent to which the Village's general revenues support each of the Village's programs/functions. The net cost of all governmental activities this year was $7,236,185, a 31.30% decrease from the prior period. The largest decrease in net cost was from the function of public safety due to an increase in charges for services as well as an increase in operating grants and contributions related to the COVID-19 pandemic. Increases in building permit, fire plan review and fire transport fees also led to the decrease in net cost for this function. As shown on the Statement of Activities, the functions directly benefiting from the programs generated revenue of $6,098,419 with $11,343,500 financed through general revenues. Page 40 of 501 10 Agenda Item #4. Management's Discussion and Analysis 2021 The following is a comparison of revenues by source for governmental activities for fiscal year 2021 and 2020. Revenues by Source - Governmental Activities In Thousands $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 Owe a�a �s tit` 4t`� tili� G �• P G,�at4O O°t��• ,b� J°t�y Gtat' Business -type Activities. The Village of Tequesta's business -type activities reported operating revenues exceeding expenses by $751,223. Non -operating revenues were $79,934. This resulted in an increase in net position of $831,157 from the prior year. Total Revenues/Expenses - Business -Type Activities in Thousands $7,000 $6,000 $5,000 $4.000 $3,000 $2,000 $1,000 $0 Water Utility Refuse & Recycling Stormwater Utility ■Revenue ■Expenses As shown in the chart below, revenues from charges for services reported in business -type activities increased $287,831 from the prior year. Decreased water sales in the Water Utility Fund resulted in decreased operating revenues of 4.9% or $312,040 from the prior year. The Stormwater Utility reported increases in revenues of 4.1% and Refuse and Recycling revenues remained fairly constant. Non -operating income includes investment earnings, loss on disposal of capital assets, as well as capital connection fees. Page 41 of 501 11 Agenda Item #4. Management's Discussion and Analysis 2021 This revenue category increased by 537.8% from the previous fiscal year due to an increase in capital connection fees from new residential developments. Revenues by Source - Business -Type Activities In Thousands $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2'000 2021 2020 $1,000 $0 Charges for Services Non -operating 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, 2021 the Village of Tequesta's governmental funds reported total combined fund balances of $10,143,193. $4,356,864 (43%) of the combined governmental fund balances is unassigned and is available for spending at the Village's discretion. Approximately 33.5% or $3,399,922 is assigned or committed, with the largest portion assigned to subsequent year's budget. Approximately $1.6 million is restricted for a particular purpose (i.e. debt service, Law Enforcement Trust funds, etc.). $757,607 is in nonspendable form (i.e. inventories, prepaid items, etc.). Total combined fund balances have increased 124.89% from the prior year. Page 42 of 501 12 Agenda Item #4. Management's Discussion and Analysis 2021 Governmental Funds Components of Fund Balance September 30, 2021 and 2020 2020 ■ Committed vonspendable Restricted ■ Assigned ■ Unassigned 2021 $0$1,000,000$2,000,000$3,000,000$4,000,000$5,000,000 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 $6,206,380, an increase of $2,811,911 from the prior year. Unassigned fund balance of $4,356,864, increased by 131% 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 33% of fiscal year 2021 General Fund expenditures and total fund balance represents approximately 47% of total expenditures. The Village of Tequesta adopted a policy to keep unassigned fund balance at a minimum of two months (17%) of expenditures. Page 43 of 501 13 Agenda Item #4. Management's Discussion and Analysis 2021 General Fund Components of Fund Balance September 30, 2021 and 2020 ■ Committed Nonspendable. ■ Restricted ■ Assigned ■ Unassigned 14 Page 44 of 501 Agenda Item #4. Management's Discussion and Analysis 2021 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 $ 7,848,744 47.9% $ 351,651 4.7% $ 7,497,093 Other taxes 1,966,890 12.0% 255,073 14.9% 1,711,817 Charges for services 2,081,958 12.7% 694,491 50.1% 1,387,467 Intergovernmental 2,639,327 16.1% 1,823,459 223.5% 815,868 Intragovernmental 1,031,297 6.3% 305,861 42.2% 725,436 Franchise fees 509,963 3.1% 62,281 13.9% 447,682 Licenses and permits 1,050 -% 370 54.4% 680 Rents and Royalties 227,006 1.4% 8,075 3.7% 218,931 Fines and forfeitures 22,806 0.1% 11,098 94.8% 11,708 Misc. grants and contributions 55,049 0.3% (66,690) (54.8)% 121,739 Investment earnings 7,550 % (40,515) (84.3)% 48,065 Total Revenue $ 16,391,640 100% $ 3,405,154 26.2% $ 12,986,486 As noted in the table above, total General Fund revenues increased by $3,405,154 (26.2%). The largest changes were due to: 1) increased ad valorem tax revenue resulting from increased property values; 2) increased fire plan review/land development fees due to new residential developments; 3) increased intragovernmental revenue stemming from increased administrative fees to the Water and Stormwater utility enterprise funds; and 4) increased intergovernmental revenue due to recognition of grant revenue under the American Rescue Plan Act funding. Expenditures in the General Fund are shown in the following schedule: General government $ 2,690,661 20.2% $ 483,040 21.9% $ 2,207,621 Public Safety 7,463,648 56.2% 78,043 1.1% 7,385,605 Transportation 1,403,950 10.6% 94,900 7.2% 1,309,050 Leisure services 606,363 4.6% 3,095 0.5% 603,268 Debt service 489,759 3.7% 33,641 7.4% 456,118 Capital outlay 634,329 4.8% 335,601 112.3% 298,728 Total expenditures $ 13,288,710 100% $ 1,028,320 8.4% $ 12,260,390 Total General fund expenditures increased from the prior year by 8.4%. The increase of $483,040 or 21.9% in General Government expenditures was primarily due to re -allocation of the operating costs for the Finance and Information Technology departments to better track the costs of operations. These costs were previously allocated amongst various departments benefiting from the services of these two departments. The increase Page 45 of 501 15 Agenda Item #4. Management's Discussion and Analysis 2021 in capital outlay of $335,601 or 112.3% is mainly due to the purchase of an ambulance and acquisition of computer hardware. Below is a graphical presentation of how the Village expends funds and how they compare to the prior period. 2021 2020 General Fund - Expenditures by Source In Thousands $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 ,°e, oNO 0 The fund balance of the City's Capital Projects fund Major Fund increased by $2,493,828 from the prior year, as a result of issuance of debt to finance the construction of the new community center at Constitution Park. This fund also had increased expenditures of $4,706,308 from the prior year due primarily to costs incurred in connection with the community center project. At September 30, 2021, ending fund balances for the Non -major Special Revenue funds are as follows: Building Fund - $876,387; Special Law Enforcement Fund - $157,041. The ending fund balances in the Non -major Capital Projects Fund are as follows: Capital Improvement Fund - $353,291. 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 Improvement Fund receives revenue primarily from capital grants and transfers -in from other funds. General Fund Budgetary Highlights The General Fund original budgeted expenditures were increased by $511,063, which was partly funded from unassigned fund balance, interdepartmental transfers and intergovernmental revenues. The increased expenditures related to acquisition of an ambulance as well as additional operating costs for general government and public safety. The Fire Department exceeded its amended budget by $42,040. This overexpenditure was covered by budgetary savings in other general fund departments. Page 46 of 501 16 Agenda Item #4. Management's Discussion and Analysis 2021 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 $22,292,324 an increase of $831,157 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. Water Stormwater Refuse and Recycling Income 2021 $ 418,690 (64,013) (24,656) $ 330,021 Capital Assets and Debt Administration 2020 $ 622,281 (21,421) (8,745) $ 592,115 Change in Net Position 2021 2020 $ 913,413 $ 502,833 (57,963) (13,241) (24,293) (8,061) $ 831,157 $ 481,531 Capital assets: The Village's capital assets for its governmental and business -type activities total $33,987,888 (net accumulated depreciation) as of September 30, 2021. The Village acquired $6,926,114 in assets during the year and disposed of $1,147,376 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 $ 634,017 $ 83,335 $ 83,335 $ 717,352 Construction in progress 4,536,072 99,047 216,730 - 4,752,802 Buildings 8,004,908 8,043,526 972,980 979,512 8,977,888 Improvements 2,509,454 2,424,606 58,720 58,720 2,568,174 Infrastructure 5,223,601 5,138,363 37,644,930 36,414,112 42,868,531 Machinery & Equipment 4,654,716 4,797,293 2,110,855 2,200,049 6,765,571 Intangibles 274,455 274,455 129,096 129,096 403,551 Other - K-9 20,549 20,549 - - 20,549 Total capital assets 25,857,772 21,430,856 41,216,646 39,864,824 67,074,418 Less accumulated depreciation (110,003,757) (9,866,506) (23,082,773) (22,441,726) (33,086,530) Total capital assets, net $ 15,854,015 $ 11,564,350 $ 18,133,873 $ 17,423,098 $ 33,987,888 $ 717,352 98,047 9,023,038 2,483,326 41,552,475 6,997,342 403,551 20.549 61,295,680 (32,308,232 $ 28,987,448 17 Page 47 of 501 Agenda Item #4. Management's Discussion and Analysis 2021 Noncurrent liabilities noncurrent liabilities. America that are se( position. At the end of the current fiscal year, the Village had a total of $13,921,028 of The largest portion are debt instruments in the form of promissory notes with Bank of ured by general revenue sources. The table below summarizes the Village's debt In accordance with GASB Statements No's. 68 and 75, the Village recognized a net pension liability (NPL) of $2,069,473 and a total OPEB liability of $447,273, 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 $ 7.254,007 $ 712,790 $ 2,721,115 $ 3,119,112 $ 9,975,122 $ 3,831,902 Capital leases 493,543 256,234 - - 493,543 256,234 Compensated absences 791,398 782,847 144,219 169,177 935,617 952,024 Total OPEB Liability 344,733 295,386 102,540 94,864 447,273 390,250 Noncurrent Liabilities 8,883,681 2,047,257 2,967,874 3,383,153 11,851,555 5,430,410 Net Pension Liability 1,870,706 2,302,976 198,767 243,761 2,069,473 2,546,737 Total Noncurrent Liabilities $ 10,754,387 $ 4,350,233 $ 3,166,641 $ 3,626,914 $ 13,921,028 $ 7,977,147 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 2021-2022 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 5.63%. • Projected Cost of Living Adjustment (COLA) increase of 2.00% (Plus Step) for Fire Union members; 3.00% for Police employees; 3.02% 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 U.S. Real Gross Domestic Product increased by 5.7% in calendar year 2021, in contrast to a decrease of 3.5% during calendar year 2020. • The Village of Tequesta's proposed water rate increase of 3.5% to fund capital needs. • Proposed increase of 3.5% in refuse and recycling rates. • Proposed increase of 10.0% in stormwater rates. 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. Page 48 of 501 18 Agenda Item #4. BASIC FINANCIAL STATEMENTS Page 49 of 501 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30, 2021 Assets Cash Investments Receivables, net Inventories Prepaid items Net pension asset Capital assets not being depreciated Capital assets being depreciated, net Total Assets Deferred Outflows of Resources Deferred outflows - pensions Deferred outflows - OPEB Deferred charge on refunding Total Deferred Outflows of Resources Liabilities Accounts payable Accrued liabilities Retainage payable Customer deposits Unearned revenue Due to other governments Noncurrent liabilities: Due within one year Due in more than one year Total OPEB liability due in more than one year Net pension liability due in more than one year Total Liabilities Deferred Inflows of Resources Deferred inflows - pensions Total Deferred Inflows of Resources Net Position Net investment in capital assets Restricted: Infrastructure Debt Service Building Law Enforcement Unrestricted Total Net Position Business - Governmental type Activities Activities Total $ 10,205,206 $ 6,414,786 $ 16,619,992 24,598 40,659 65,257 655,886 862,628 1,518,514 77,475 223,773 301,248 680,132 95,239 775,371 1,264,359 - 1,264,359 5,170,089 300,065 5,470,154 10,683,926 17,833,808 28,517,734 28,761,671 25,770,958 54,532,629 2,063,257 424,224 2,487,481 15,604 4,640 20,244 - 145,099 145,099 2,078,861 573,963 2,652,824 1,119,818 316,294 1,436,112 96,802 30,329 127,131 141,553 - 141,553 - 49,672 49,672 136,992 - 136,992 4,939 252 5,191 823,863 391,728 1,215,591 7,715,085 2,473,606 10,188,691 344,733 102,540 447,273 1,870,706 198,767 2,069,473 12,254,491 3,563,188 15,817,679 825,347 489,409 1,314,756 825,347 489,409 1,314,756 7,103,735 15,470,616 22,574,351 59,172 - 59,172 561,007 376,728 937,735 864,932 - 864,932 143,689 - 143,689 9,028,159 6,444,980 15,473,139 $ 17,760,694 $ 22,292,324 $ 40,053,018 The accompanying notes are an integral part of these financial statements. Page 50 of 501 19 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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 $ 3,121,260 $ 1,930,346 $ 15,381 $ - $ (1,175,533) $ $ (1,175,533) Public safety 7,507,748 2,416,823 1,627,348 63,568 (3,400,009) (3,400,009) Transportation 1,944,570 - 31,396 - (1,913,174) (1,913,174) Leisure services 701364 11,253 2,304 (687,807) (687,807) Interest on long-term debt 59,662 - - - (59,662) (59,662) Total governmental activities 13,334,604 4,358,422 1,676,429 63,568 (7,236,185) (7,236,185) Business -type Activities Water 5,810,515 6,641,698 3,542 - 834,725 834,725 Stormwater utility 524,732 450,271 15,615 (58,846) (58,846) Refuse and Recycling 511,299 486,643 - (24,656) (24,656) Total business -type activities 6,846,546 7.578,612 19,157 751,223 751,223 Total primary government $ 20,181,150 $ 11,937,034 $ 1,695,586 $ 63,568 (7,236,185) 751,223 (6,484,962) General Revenues Ad valorem taxes Utility taxes Communication service tax Insurance premium taxes Infrastructure surtax Business taxes Franchise fees based on gross receipts Unrestricted intergovernmental revenues Unrestricted investment earnings Gain on sale of capital assets Miscellaneous revenues Transfers Total general revenues Change in net position Net Position - Beginning Net Position - Ending 7,848,744 7,848,744 820,638 820,638 302,743 302,743 284,927 284,927 473,106 473,106 85,476 85,476 509,963 509,963 901,243 901,243 13,296 7,917 21,213 26,524 29,834 56,358 54,949 64,074 119,023 21,891 (21,891) - 11,343,500 79,934 11,423,434 4,107,315 831,157 4,938,472 13,653,379 21,461,167 35,114,546 S 17,760,694 S 22,292,324 $ 40,053,018 The accompanying notes are an integral part of these financial statements. 20 Page 51 of 501 Agenda Item #4. Assets Cash Investments Receivables, net Inventories Prepaid items Total Assets Liabilities Accounts payable Accrued liabilities Retainage payable Unearned revenue Due to other governments Total Liabilities Fund Balances Nonspendable: Inventories Prepaid items Restricted: Infrastructure Debt Service Building Law Enforcement Committed to: Disaster Reserve Capital Projects Assigned to: Capital Projects Subsequent years budget Unassigned: General Fund Total Fund Balances Total Liabilities and Fund Balances VILLAGE OF TEQUESTA, FLORIDA BALANCESHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2021 Nonmajor Total General Capital Governmental Governmental Fund Projects Funds Funds $ 5,284,320 $ 3,537,484 $ 1,383,402 $ 10,205,206 24,598 - - 24,598 655,245 145 496 655,886 77,386 - 89 77,475 655,414 - 24,718 680,132 $ 6,696,963 $ 3,537,629 $ 1,408,705 $ 11,643,297 $ 260,466 $ 845,982 $ 13,370 $ 1,119,818 91,928 - 4,874 96,802 - 141,553 - 141,553 136,992 - - 136,992 1,197 - 3,742 4,939 490,583 987,535 21,986 1,500,104 77,386 - 89 77,475 655,414 - 24,718 680,132 - - 59,172 59,172 561,007 - - 561,007 - - 864,932 864,932 - - 143,689 143,689 500,000 - - 500,000 - - 262,429 262,429 - 191,456 31,690 223,146 55,709 2,358,638 - 2,414,347 4,356,864 - - 4,356,864 6,206,380 2,550,094 1,386,719 10,143,193 $ 6,696,963 $ 3,537,629 $ 1,408,705 $ 11,643,297 The accompanying notes are an integral part of these financial statements. Page 52 of 501 21 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION SEPTEMBER 30, 2021 Amounts reported for governmental activities in the statement of net position are different because: Total Fund Balances - Governmental Funds $ 10,143,193 Net pension asset is not considered to represent a financial asset in the governmental funds. 1,264,359 Net capital assets used in the governmental activities are not financial resources and, therefore are not reported in the governmental funds. 15,854,015 Deferred outflows of resources related to pensions and OPEB transactions not reported in the governmental funds. 2,078,861 Deferred inflows of resources related to pension transactions not recognized in the governmental funds. (825,347) Long-term liabilities, including notes payable, are not due and payable in the current period and, therefore, are not reported in the governmental funds. (8,538,948) Total OPEB liability is not due and payable in the current period and, therefore, not reported in the governmental funds. (344,733) Net pension liability is not due and payable in the current period and, therefore, not reported in the funds. (1,870,706) Net Position of Governmental Activities $ 17,760,694 The accompanying notes are an integral part of these financial statements. Page 53 of 501 22 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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 General Capital Fund Projects Nonmajor Total Governmental Governmental Funds Funds $ 7,848,744 $ - $ - $ 7,848,744 1,966,890 - - 1,966,890 2,081,958 - 31,554 2,113,512 2,639,327 - 1,813 2,641,140 1,031,297 - - 1,031,297 1,050 - 871,235 872,285 509,963 - - 509,963 227,006 - - 227,006 54,949 - - 54,949 22,806 - 91,516 114,322 100 - - 100 7,550 4,133 1,613 13,296 16,391,640 4,133 997,731 17,393,504 2,690,661 - - 2,690,661 7,463,648 - 642,398 8,106,046 1,403,950 236,329 99,763 1,740,042 606,363 30,000 3,600 639,963 634,329 4,538,026 178,822 5,351,177 430,097 - - 430,097 59,662 - - 59,662 13,288,710 4,804,355 924,583 19,017,648 3,102,930 (4,800,222) 73,148 (1,624,144) 31,994 404,050 460,110 896,154 (668,160) - (206,103) (874,263) 26,524 - - 26,524 318,623 6,890,000 - 7,208,623 (291,019) 7,294,050 254,007 7,257,038 (291,019) 7,294,050 254,007 7,257,038 2,811,911 2,493,828 327,155 5,632,894 3,394,469 56,266 1,059,564 4,510,299 $ 6,206,380 $ 2,550,094 $ 1,386,719 $ 10,143,193 The accompanying notes are an integral part of these financial statements. Page 54 of 501 23 Agenda Item #4. 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, 2021 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances - total governmental funds 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 Depreciation/amortization expense The effect of transactions involving capital assets as follows: Disposition of capital asset 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. Issuance of note payable Proceeds from capital lease Payment on notes payable Payment on capital lease 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 Total OPEB liability Net pension related Change in net position of governmental activities 5,351,177 (808,694) $ 5,632,894 4,542,483 (252,818) (252,818) (6,890,000) (318,623) 348,783 81,314 (6,778,526) (8,552) (48,156) 1,019,990 963,282 $ 4,107,315 The accompanying notes are an integral part of these financial statements. Page 55 of 501 24 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30.2021 Business -type Activities Nonmajor Water Refuse & Fund Storm -water Recycling Total Assets Current Assets: Cash $ 6,258,898 $ 23,476 S 132,412 $ 6,414,786 Investments 40,659 - - 40,659 Receivables, net 839,780 19,095 3,753 862,628 Due from other funds 45,000 - - 45,000 Inventories 223,433 340 - 223,773 Prepaid items 94,042 1,197 - 95,239 Total Current Assets 7,501,812 44,108 136,165 7,682,085 Non -current Assets: Capital assets not being depreciated 300,065 - - 300,065 Capital assets being depreciated, net 15,813,294 2,020,514 - 17,833,808 Total Non -Current Assets 16,113,359 2,020,514 - 18,133,873 Total Assets 23,615,171 2,064,622 136,165 25,815,958 Deferred Outflows of Resources Deferred outflows - pensions 398,731 25,493 - 424,224 Deferred outflows - OPEB 4,274 366 - 4,640 Deferred charge on refunding 145,099 - - 145,099 Total Deferred Outflows of Resources 548,104 25,859 - 573,963 Liabilities Current Liabilities: Accounts payable $ 232,314 $ 42,099 $ 41,881 $ 316,294 Accrued liabilities 28,888 1,441 - 30,329 Due to other funds - 45,000 - 45,000 Customer deposits 49,672 - - 49,672 Compensated absences 15,000 - - 15,000 Due to other governments 252 - - 252 Notes payable 376,728 - - 376,728 Total Current Liabilities 702,854 88,540 41,881 833,275 Noncurrent Liabilities: Compensated absences 127,123 2,096 - 129,219 Notes payable 2,344,387 - - 2,344,387 Net pension liability 194,183 4,584 - 198,767 Total OPEB liability 94,451 8,089 - 102,540 Total Noncurrent Liabilities 2,760,144 14,769 - 21774,913 Total Liabilities 3,462,998 103,309 41,881 3,608,188 Deferred Inflows of Resources Deferred inflows - pensions 478,636 10,773 - 489,409 Total Deferred Inflows of Resources 478,636 10,773 - 489,409 Net Position Net investment in capital assets 13,475,617 1,994,999 - 15,470,616 Restricted: Debt Service 376,728 - - 376,728 Unrestricted 6,369,296 (18,600) 94,284 6,444,980 Total Net Position $ 20,221,641 $ 1,976,399 S 94,284 S 22,292,324 The accompanying notes are an integral part of these financial statempW e 56 of 50 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Operating Revenues Charges for services: Metered water sale Stormwater fees Refuse and recycling fees Total Operating Revenues Operating Expenses Cost of sales and services: Plant production Distribution Stormwater Purchased services Management senTices Administration Depreciation/amortization Total Operating Expenses Operating Income (Loss) Non -Operating Revenues (Expenses) Investment earnings Interest expense Loss on disposal of capital assets Capital contributions - fees Capital contributions - grants Transfers out Miscellaneous revenue Total Non -Operating Revenues (Expenses) Change in Net Position Net Position - Beginning Net Position - Ending Business -type Activities N onmaj or Water Refuse & Fund Stormwater Recycling Total $ 6,058,053 $ - $ - $ 6,058,053 - 450,271 - 450,271 - - 486,643 486,643 6,058,053 450,271 486,643 6,994,967 2,282,039 - - 2,282,039 1,316,189 - - 1,316,189 - 296,038 - 296,038 - - 502,749 502,749 836,872 85,873 8,550 931,295 522,683 - - 522,683 681,580 132,373 - 813,953 5,639,363 514,284 511,299 6,664,946 418,690 (64,013) (24,656) 330,021 6,671 883 363 7,917 (131,391) - - (131,391) (9,927) (10,448) - (20,375) 583,645 - - 583,645 3,542 15,615 - 19,157 (21,891) - - (21,891) 64,074 - - 64,074 494,723 6,050 363 501,136 913,413 (57,963) (24,293) 831,157 19,308,228 2,034,362 118,577 21,461,167 $ 20,221,641 $ 1,976,399 $ 94,284 $ 22,292,324 The accompanying notes are an integral part of these financial statements. Page 57 of 501 26 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Business -type Activities Water Storm Water Refuse Fund Fund Nomnajor Fund Totals Cash Flows from Operating Activities Cash received from customers, governments and other funds $ 6,264,907 $ 449,781 $ 485,939 $ 7,200,627 Cash paid to suppliers (2,800,637) (518,346) (510,084) (3,829,067) Cash paid to employees (1,970,992) (139,158) - (2,110,150) Net Cash Provided by (Used in) Operating Activities 1,493,278 (207,723) (24,145) 1,261,410 Cash Flows from Non Capital Financing Activities Transfers to other funds (66,891) - - (66,891) Transfers from other funds - 45,000 - 45,000 Net Cash Provided by (Used in) Non Capital Financing Activities (66,891) 45,000 - (21,891) Cash Flows from Capital and Related Financing Activities Acquisition and construction of capital assets (758,820) (816,117) - (1,574,937) Cash received from sale of capital assets 29,834 - - 29,834 Capital contributions - grants 3,542 - - 3,542 Capital contributions - tap fees 583,645 - - 583,645 Principal payments on long-term debt (397,997) - - (397,997) Interest paid (110,755) - - (110,755) Net Cash Used in Capital and Related Financing Activities (650,551) (816,117) - (1,466,668) Cash Flows from Investing Activities Interest and micsellaneous income Sale of investments Net Cash Provided by Investing Activities Net Change in Cash and Cash Equivalents Cash and Cash Equivalents - Beginning Cash and Cash Equivalents - Ending Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by (Used in) Operating Activities Operating income (loss) Adjustments to reconcile operating Income (Loss) to net cash provided by (used in) operating activities: Depreciation/Amortization Changes in operating assets, liabilities and deferred inflows/ outflows of resources: (Increase) decrease in: Accounts receivable Due from other governments Inventories Deferred outflow of resources Prepaid items Increase (decrease)in: 70,745 883 363 71,991 (63) - - (63) 70,682 883 363 71.928 846,518 (977,957) (23,782) (155,221) 5,412,380 1,001,433 156,194 6,570,007 $ 6,258,898 $ 23,476 $ 132,412 $ 6,414,786 $ 418,690 $ (64,013) $ 681,580 132,373 (24,656) $ 330,021 - 813,953 197,138 - (704) 196,434 - (490) - (490) 29,381 118 - 29,499 (31,771) (1,972) - (33,743) (23,168) (496) - (23,664) Accounts payable 9,630 (276,321) 1,215 (265,476) Accrued liabilities (51,581) (2,971) - (54,552) Customer deposits 9,716 - - 9,716 Compensated absences (26,041) 1,083 - (24,958) Deferred inflows of resources 321,856 226 - 322,082 Net pension liability (48,703) 3,709 - (44,994) Due to other governments (94) - - (94) Total OPEB liability 6,645 1,031 - 7,676 Net Cash Provided by (Used in) Operating Activities $ 1,493,278 $ (207,723) $ (24,145) $� 501 The a2epnipanying notes are an integral .of part of these financial st ements. Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30, 2021 Pension Trust Funds Assets Cash and cash equivalents $ 737,453 Investments Equities 22,300,342 Fixed Income 6,519,823 Real Estate Fund 3,273,523 Total investments 32,093,688 Accounts receivable 12,535 Contributions receivable 65,705 Accrued interest receivable 27,820 Prepaid items 36,375 Total Assets 32,973,576 Liabilities Accounts payable 43,595 Due to broker 164,936 Deferred inflows 43,272 Total Liabilities 251,803 Net Position Restricted for Pension Benefits $ 32,721,773 The accompanying notes are an integral part of these statement. Page 59 of 501 28 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Pension Trust r , Additions Contributions: State of Florida $ 284,927 Employer 891,205 Employee 352,244 Total Contributions 1,528,376 Investment Earnings Net appreciation in fair value of investments 5,903,014 Loss on sale of investments (803,557) Interest and dividends 399,404 5,498,861 Less investment expenses (106,106) Net Investment Earnings 5,392,755 Miscellaneous 392 Total Additions 6,921,523 Deductions Benefits paid 444,368 Refund of contributions 18,820 Administrative expenses 95,844 Total Deductions 559,032 Change in Net Position 6,362,491 Net Position Restricted for Pension Benefits Beginning of year 26,359,282 End of year $ 32,721,773 The accompanying notes are an integral part of these statement. Page 60 of 501 29 Agenda Item #4. NOTES TO BASIC FINANCIAL STATEMENTS Page 61 of 501 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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 62 of 501 30 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 charges would distort the direct costs and program revenues reported for the various functions concerned. The Statement of Net Position reports all financial and capital resources of the Village's governmental and business -type activities. Governmental activities are those supported by taxes and intergovernmental revenues. Business -type activities rely to a significant extent on fees and charges for support. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges for goods or services that are recovered directly from customers for services rendered and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. D. Basis of Presentation — Fund Financial Statements The fund financial statements provide information about the Village's funds, including its fiduciary funds. Separate statements for each fund category — governmental, proprietary and fiduciary — are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. Major individual governmental and enterprise funds are reported as separate columns in the fund financial statements. Fiduciary funds are presented apart from major and nonmajor funds. The Village reports the following major governmental fund: The General Fund is the Village's primary operating fund. It accounts for all financial resources of the general government, except those accounted for in another fund. The Capital Projects Fund accounts for acquisition or construction of major capital projects, other than those financed by proprietary fund types. 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 Page 63 of 501 31 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 only the net amount is included as internal balances in the governmental activities column. Similarly, balances between the funds included in the business -type activities (i.e., the enterprise funds) are eliminated so that only the net amount is included as internal balances in the business -type activities column. Further, certain activity occurs during the year involving transfers of resources between funds. In fund financial statements these amounts are reported at gross amounts as transfers in/out. While reported in fund financial statements, certain eliminations are made in the preparation of the government -wide financial statements. Transfers between the funds included in governmental activities are eliminated so that only the net amount is included as transfers in the governmental activities column. Similarly, balances between the funds included in business -type activities are eliminated so that only the net amount is included as transfers in the business -type activities column. E. Measurement Focus and Basis of Accounting The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements. The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Village considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, and claims and judgments, are recorded only when payment is due. Capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt and acquisitions under capital leases are reported as other financing sources. 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 64 of 501 32 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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 flair 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 the department level. 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 executory contract is expected in the next year) are re -appropriated and become part of the subsequent year's budget pursuant to state regulations. Page 65 of 501 33 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 G. Assets, Liabilities, Deferred Outflows/InfZows 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 $5,000 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 66 of 501 34 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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 — 40 years Infrastructure 20 — 50 years Machinery and equipment 5 — 15 years Intangibles 5 — 20 years Other 5 — 15 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 67 of 501 35 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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 68 of 501 36 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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 2021 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 69 of 501 37 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 4. Proprietary Funds Operating and Non -Operating Revenues and Expenses Proprietary funds distinguish operating revenues and expenses from non -operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the water fund, refuse and recycling fund and stormwater fund are charges to customers for sales and services. The water fund also recognizes as operating revenue, the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for the enterprise funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non -operating revenues and expenses. L Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and deferred outflows of resources and liabilities and deferred inflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. J. Implementation of new GASB Pronouncements In January 2017, GASB issued Statement No. 84, Fiduciary Activities, which is effective for the Village for the fiscal year that ended September 30, 2021. The objective of this Statement is to improve guidance regarding what constitutes fiduciary activities for accounting and financial reporting purposes, the recognition of liabilities to beneficiaries, and how fiduciary activities should be reported. The adoption of this statement did not impact the Village's financial position or results of operations. In June 2018, GASB issued Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period, which is effective for the Village beginning with the fiscal year that ended September 30, 2021. The objectives of this Statement are (1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred before the end of a construction period. The adoption of GASB Statement No. 89 did not impact the Village's financial position or results of operations. In August 2018, GASB issued Statement No. 90, Majority Equity Interests - an Amendment of GASB Statements No.14 and No. 61, which is effective for the Village beginning with the fiscal year that ended September 30, 2021. The primary objectives of this Statement are to improve the consistency and comparability of reporting a government's majority equity interest in a legally separate organization and to improve the relevance of financial statement information component units. The adoption of GASB Statement No. 90 did not impact the Village's financial position or results of operations. The Village implemented GASB Statement No. 98, The Annual Comprehensive Financial Report, during fiscal year 2021. This Statement establishes the term "annual comprehensive financial report" and its acronym ACFR. That new term and acronym replace instances of comprehensive Page 70 of 501 38 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 annual financial report and its acronym in generally accepted accounting principles for state and local governments. This Statement was developed in response to concerns raised by stakeholders that the common pronunciation of the acronym for comprehensive annual financial report sounds like a profoundly objectionable racial slur. This Statement's introduction of the new term is founded on a commitment to promoting inclusiveness. The implementation of this pronouncement did not result in any financial impact to the Village. K. New GASB Pronouncements Not Yet Adopted In June 2017, GASB issued Statement No. 87, Leases, which will be effective for the Village beginning with its fiscal year ending September 30, 2022. This Statement outlines new guidance that establishes a single approach to accounting for and reporting leases by state and local governments. The goal is to better align reporting these leases with their particular situations, as well as provide greater transparency and usefulness of financial statements. In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations, which will be effective for the Village beginning with its fiscal year ending September 30, 2023. This standard will provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosure. This standard is not expected to impact the Village's financial statements. In January 2020, GASB issued Statement No. 92, Omnibus 2020, which will be effective for the Village beginning with its fiscal year ending September 30, 2022. This standard will enhance comparability in accounting and financial reporting and will improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. This Statement addresses a variety of topics and includes specific provisions about the following: (1) The effective date of Statement No. 87, Leases, and Implementation Guide No. 2019-3, Leases, for interim financial reports; (2) Reporting of intra-entity transfers of assets between a primary government employer and a component unit defined benefit pension plan or defined benefit other postemployment benefit (OPEB) plan; (3) The applicability of Statements No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of ' GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68, as amended, and No. 74, Financial Reporting_ for Post -employment Benefit Plans Other Than Pension Plans, as amended, to reporting assets accumulated for post -employment benefits; (4) The applicability of certain requirements of Statement No. 84, Fiduciary Activities, to post -employment benefit arrangements; (5) Measurement of liabilities (and assets, if any) related to asset retirement obligations (ARO's) in a government acquisition; (6) Reporting by public entity risk pools for amounts that are recoverable from reinsurers or excess insurers; (7) Reference to nonrecurring fair value measurements of assets Page 71 of 501 39 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 or liabilities in authoritative literature; (8) Terminology used to refer to derivative instruments. This standard is not expected to impact the Village's financial statements. In March 2020, GASB issued Statement No. 93, Replacement of Interbank Offered Rates, which will be effective for the Village beginning with its year ending year end September 30, 2022, with the exception of the removal of LIBOR as an appropriate benchmark interest rate which will become effective September 30, 2023. The objective of this Statement is to address accounting and financial reporting implications that result from the replacement of an Interbank Offered Rate. This Statement achieves that objective by: (1) Providing exceptions for certain hedging derivative instruments to the hedge accounting termination provisions when an IBOR is replaced as the reference rate of the hedging derivative instrument's variable payment; (2) Clarifying the hedge accounting termination provisions when a hedged item is amended to replace the reference rate; (3) Clarifying that the uncertainty related to the continued availability of IBOR's does not, by itself, affect the assessment of whether the occurrence of a hedged expected transaction is probable; (4) Removing LIBOR as an appropriate benchmark interest rate for the qualitative evaluation of the effectiveness of an interest rate swap; (5) Identifying a Secured Overnight Financing Rate and the Effective Federal Funds Rate as appropriate benchmark interest rates for the qualitative evaluation of the effectiveness of an interest rate swap; (6) Clarifying the definition of reference rate, as it is used in Statement 53, as amended. This standard is not expected to impact the Village's financial statements. In April 2020, GASB issued Statement No. 94, Public -Private and Public -Public Partnerships and Availability Payment Arrangements, which will be effective for the Village beginning with its fiscal year ending September 30, 2023. The objective of this Statement is to improve financial reporting by addressing issues related to public -private and public -public partnership arrangements (PPP's). This Statement also provides guidance for accounting and financial reporting for availability payment arrangements (APA's). The requirements of this Statement will improve financial reporting by establishing the definitions of PPP's and APA's and providing uniform guidance on accounting and financial reporting for transactions that meet those definitions. This standard is not expected to impact the Village's financial statements. In May 2020, the GASB issued Statement No. 96, Subscription -Based Information Technology Arrangements, which will be effective for the Village beginning with its fiscal year ending September 30, 2023. The objective of this Statement is to improve financial reporting by establishing a definition for SBITA's and providing uniform guidance for accounting and financial reporting for transactions that meet that definition. That definition and uniform guidance will result in greater consistency in practice. Establishing the capitalization criteria for implementation costs also will reduce diversity and improve comparability in financial reporting by governments. This Statement also will enhance the relevance and reliability of a government's financial statements by requiring a government to report a subscription asset and subscription liability for a SBITA and to disclose essential information about the arrangement. The disclosures will allow users to understand the scale and important aspects of a government's SBITA activities and evaluate a government's obligations and assets resulting from SBITA's. This standard is not expected to impact the Village's financial statements. Page 72 of 501 40 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 In June 2020, GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans — An Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32, which will be effective for the Village beginning with its fiscal year ending September 30, 2022. The objective of this Statement is to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other post -employment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. This standard is not expected to impact the Village's financial statements. Page 73 of 501 41 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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 $15,854,015 as explained in the following detail (additional details shown in Note 3.D.): Capital assets not being depreciated: Land $ 634,017 Construction in progress 4,536,072 Capital assets being depreciated: Buildings, net 4,491,518 Improvements other than buildings, net 904,067 Infrastructure, net 3,927,475 Machinery and equipment, net 1,339,963 Intangibles, net 10,629 Other K-9, net 10,274 Net Adjustment to Increase Fund Balance - Total Governmental Funds to Arrive at Net Position - Governmental Activities $ 15,854,015 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 $8,538,948 difference are as follows: Note payable Capital leases Compensated absences Net Adjustment to Reduce Fund Balance - Total Governmental Funds to Arrive at Net Position — Governmental Activities $ 7,254,007 493,543 791,398 $ 8,538,948 42 Page 74 of 501 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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, 2021, 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 75 of 501 43 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 As of September 30, 2021, 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 65,257 49 days Demand deposits 16,619,992 Total Deposits and Investments $ 16,685,249 AAAm 0.39% 99.61 % 100% Interest Rate Risk - Interest rate risk exists when there is a possibility that changes in interest rates could adversely affect an investment's fair value. The Village's investment policy limits investments to the following: (1) at least 80% of the portfolio shall mature within one year and (2) on any given date, not more than 10% of the portfolio shall mature beyond five years. Credit Risk - Credit risk exists when there is a possibility that the issuer or other counter -party to an investment transaction may be unable to fulfill its obligations. The Village's investment policy allows investments in U.S. Government -sponsored agencies and enterprises, commercial paper, the Florida PRIME investment pool, interlocal investment pools. The Village invests surplus funds in Florida PRIME Investment Pool. The Florida PRIME is rated by Standard & Poor's. The rating for this investment pool was within policy guidelines. 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, 2021, 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 76 of 501 44 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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, 2021, 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, 2021. 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, 2021 (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 77 of 501 45 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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, 2021 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 9/30/2021 (Level1) (Level2) (Level3) Equities Mutual funds equities $ 16,529,424 $ 16,529,424 Total equity 16,529,424 16,529,424 Fixed income Corporate bonds 901,391 901,391 U.S. Agencies 1,204,546 1,204,546 U.S. Government bonds 1,580,868 1,580,868 Bond mutual fund 781,257 781,257 Total fixed income 4,468,062 781,257 3,686,805 Total investments at fair value 20,997,486 $ 17,310,681 $ 3,686,805 $ - Investment at net asset value Redemption Redemption Notice (NAV) Frequency Period Real Estate Fund 2,372,635 Quarterly 30 days Total investments $ 23,370,121 Page 78 of 501 46 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 As of September 30, 2021, the Village of Tequesta's Public Safety Pension Trust Fund had the following demand deposits and investments: Weighted Credit Reported Average Rating Percent Percent of Value Maturity (Moody) Distribution Net Position Cash $ 23,462 0.10% -% Short -Term Money Market Fund 563,490 2.35% 2.36% Total Cash and Cash Equivalents 586,952 Equities Mutual Funds 16,529424 69.00% 69.33% Total Equities 16,529,424 Fixed Income Corporate Bonds: 1.75 years Bonds U.S. Government Bonds U.S. Agencies Bond Mutual Fund Total Fixed Income Real Estate Fund Total investments Total cash and investments 309,126 4,468,062 2,372,635 23,370,121 $ 23,957,073 Al A2 A3 3.38 years Aaa 1.29% 1.30% 1.91% 1.92% 0.56% 0.56% 6.60% 6.63% 5.03% 5.05% 3.26% 3.28% 9.90% 9.95% 100.00% 100.48% Interest Rate Risk - the risk that changes in interest rates will adversely affect the fair value of an investment in debt securities. Generally, the longer the time to maturity the greater the exposure. The Plan does not have a formal policy relating to interest rate risk, however; The established performance objectives require investment maturities to provide sufficient liquidity to pay obligations as they become due. At September 30, 2021, 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 1. • At September 30, 2021, the weighted average maturity in years for each investment type is included in the preceding table and ranges from 1.75 to 3.38 years. Page 79 of 501 47 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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 parry 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, 2021, 18.69% 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, 2021 and 2020, 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 20.27% and 8.30%. 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. Page 80 of 501 48 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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, 2021 and 2020 are as follows: Long -Term Expected Real Target Rate of Return Asset Class Allocation Range 2021 2020 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, 2021 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, 2021 (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 81 of 501 49 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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, 2021 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 9/30/21 (Level1) (Level2) (Level3) Equities Common stocks $ 2,195,943 $ 2,195,943 $ - Mutual funds equities 3,574,975 3,574,975 Total equities 5,770,918 5,770,918 Fixed income Corporate bonds 646,832 646,832 U.S. Government bonds 266,191 266,191 U.S. Agences 256,316 256,316 Bond mutual fund 357,943 357,943 Exchange traded funds 524,479 524,479 Total fixed income 2,051,761 882,422 1,169,339 Total investments at fair value 7,822,679 $ 6,653,340 $ 1,169,339 $ - Investment at net asset value Redemption Redemption (NAV) Frequency Notice Period Real Estate Fund 900,888 Quarterly 30 days Total investments $ 9,723,567 Page 82 of 501 50 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 At September 30, 2021, the Village of Tequesta's General Employees 'Pension Trust Fund had the following demand deposits and investments: Weighted Credit Percent Reported Average Rating Percent of Net Value Maturity (Moody) Distribution Position Cash $ 15,501 0.17% 0.17% Short Term Money Market Fund 135,000 1.52% 1.52% Total Cash and Cash equivalents 150,501 Equities Common stocks 2,195,943 24.75% 24.73% Mutual funds 3,574,975 40.29% 40.26% Total Equities 5,770,918 Fixed Income Corporate Bonds: 1.50 years Bonds 52,157 Al 0.59% 0.59% Bonds 188,397 A2 2.12% 2.12% Bonds 188,636 A3 2.13% 2.12% Bonds 217,642 Baa 2.45% 2.45% ETF - Exchange Traded Fund 524,479 5.91 % 5.91 % U.S. Government Bonds 266,191 3.00% 3.00% U.S. Agencies 256,316 1.19 years Aaa 2.89% 2.89% Mutual Fund 357,943 4.03% 4.03% Total Fixed Income 2,051,761 Real Estate Fund 900,888 10.15% 10.15% Total Investments 8,723,567 Total Cash and Investments $ 8,874,068 100.00% 99.95% Interest Rate Risk - the risk that changes in interest rates will adversely affect the fair value of an investment in debt securities. Generally, the longer the time to maturity, the greater the exposure. The Plan does not have a formal policy relating to interest rate risk, however: • The established performance objectives require investment maturities to provide sufficient liquidity to pay obligations as they become due. • At September 30, 2021, the weighted average maturity in years for each investment type is included in the preceding table and ranges from 1.19 to 1.50 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. o Equities that are traded on a National Exchange. Page 83 of 501 51 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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, 2021, 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, 2021, 18.81% 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, 2021 and 2020, the overall annual money -weighted rate of return (long-term expected real rate of return) on the General Employees' Pension Plan investments was 19.38% and 8.83% 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. Page 84 of 501 52 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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, 2021 and 2020 are as follows: Long -Term Expected Real Target Rate of Return Asset Class Allocation Range 2021 2020 Domestic Equity 50% 45%-55% 7.5% 7.5% International Equity 15% 10%-20% 8.5% 8.5% Total Equities 65% 60%-70% Domestic Core Fixed Income 20% 15%-25% 2.5% 2.5% Diversified Fixed Income 5% 0%-10% 3.5% 3.5% Total Fixed Income 25% 20%-30% Core Real Estate 10% 5%-15% 4.5% 4.5% C. Receivables Below is the detail of receivables for the general, water, and nonmajor governmental and enterprise funds including the applicable allowances for uncollectible accounts: Capital Storm- Nonmajor General Projects Water water Funds Total Accounts $ 470,608 $ 145 $ 841,980 $ - $ 1,694 $ 1,314,427 Francise fees 46,458 - - - - 46,458 Intergovernmental 185,694 - 679 19,095 2,555 208,023 Other taxes 54,696 - - - - 54,696 Gross receivables 757,456 145 842,659 19,095 4,249 1,623,604 Less: allowance for uncollectibles (102,211) - (2,879) - - (105,090) Net Total Receivables $ 655,245 $ 145 $ 839,780 $ 19,095 $ 4,249 $ 1,518,514 Page 85 of 501 53 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 D. Capital Assets Capital assets activity for the fiscal year ended September 30, 2021, 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 98,047 4,438,025 4,536,072 Total Capital Assets Not Being Depreciated/Amortized 732,064 4,438,025 5,170,089 Capital assets being depreciated/amortized: Buildings 8,043,526 - (38,618) 8,004,908 Improvements other than buildings 2,424,606 135,000 (50,152) 2,509,454 hifrastn cture 5,138,363 126,459 (41,220) 5,223,601 Machinery and equipment 4,797,293 651,694 (794,271) 4,654,716 Intangibles 274,455 - 274,455 Other K-9 20,549 20,549 Total Capital Assets Being Depreciated/Amortized 20,698,792 913,152 (924,261) 20,687,683 Less accumulated depreciation/amortization for Buildings (3,329,540) (200,123) 16,273 (3,513,390) Improvements other than buildings (1,548,407) (87,616) 30,636 (1,605,387) Infrastructure (1,191,895) (126,965) 22,734 (1,296,126) Machinery and equipment (3,546,742) (369,811) 601,800 (3,314,753) Intangibles (242,583) (21,243) - (263,826) Other K-9 (7,339) (2,936) - (10,275) Total Accumulated Depreciation/Amortization (9,866,506) (808,694) 671,443 (10,003,757) Total Capital Assets Being Depreciated/Amortized, Net 10,832,286 104,458 (252,818) 10,683,926 Governmental Activities Capital Assets, Net $ 11,564,350 $ 4,542,483 $ (252,818) $ 15,854,015 Depreciation/amortization expense was charged to the functions/programs of the governmental activities of the Village as follows: Governmental Activities General government $ 118,166 Public safety 442,156 Transportation 185,779 Leisure services 62,593 Total Depreciation/Amortization Expense - Governmental Activities $ 808,694 Page 86 of 501 54 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Begriming Ending Balance Additions Deductions Balance Business -type Activities: Capital assets not being depreciated/amortized: Land $ 83,335 $ - $ - $ 83,335 Construction in progress - 216,730 - 216,730 Total Capital Assets Not Being Depreciated/Amortized 83,335 216,730 - 300,065 Capital assets being depreciated/amortized: Buildings 979,512 - (6,532) 972,980 Improvements other than buildings 58,720 - - 58,720 Infrastructure 36,414,112 1,257,956 (27,138) 37,644,930 Machinery & Equipment 2,200,049 100,251 (189,445) 2,110,855 Intangibles 129,096 - - 129,096 Total capital assets being depreciated/amortized 39,781,489 1,358,207 (223,115) 40,916,581 Less accumulated depreciation/amortization for Buildings (738,146) (15,211) 4,633 (748,724) Improvements other than buildings (31,709) (2,349) - (34,058) Infrastructure (19,709,490) (685,151) 3,099 (20,391,542) Machinery & Equipment (1,862,279) (90,286) 165,174 (1,787,391) Intangibles (100,102) (20,956) - (121,058) Total Accumulated Depreciation/Amortization (22,441,726) (813,953) 172,906 (23,082,773) Total Capital Assets Being Depreciated/Amortized, Net 17,339,763 544,254 (50,209) 17,833,808 Business -type Activity Capital Assets, Net $ 17,423,098 $ 760,984 $ (50,209) $ 18,133,873 Depreciation/amortization expense charged to the water and stormwater funds of the business -type activities was $813,953. The depreciation/amortization expense breakdown by activity is as follows: Water utility $ 681,580 Stormwater 132,373 Total depreciation/amortization expence $ 813,953 Page 87 of 501 55 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 E. Accrued Liabilities Accrued liabilities reported by governmental funds at September 30, 2021, were as follows: Salary and employee benefits Other Total Accrued Liabilities F. Pension Obligations Other Total General Governmental Governmental Fund Funds Funds $ 88,354 $ 4,874 $ 93,228 3,574 - 3,574 $ 91,928 $ 4,874 $ 96,802 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 9000, 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 compensation based on the five highest years of salary, for each year of credited service. Special Page 88 of 501 56 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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 89 of 501 57 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Contribution rates during the 2020-2021 fiscal year were as follows: Class Employee Employer (1) Total Regular 3% 8.28% 11.28% Special Risk 3% 22.73% 25.73% Special Risk Administrative Support 3% 34.12% 37.12% Elected Officers' Judges 3% 38.01% 41.01% Governor, Lt.Governor, Cabinet, Legistrators, State Attorneys, Public Defenders 3% 57.19% 60.19% Elected County, City Officers' 3% 47.46% 50.46% Senior Management Service 3% 25.57% 28.57% DROP participants - 15.32% 15.32% Reemployed Retiree (2) (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 $44,150 for the fiscal year ended September 30, 2021. 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, 2021 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, 2021. At September 30, 2021, the Village reported a liability of $101,680 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 2020-2021 fiscal year contributions relative to the 2019-2020 fiscal year contributions of all participating members. At the June 30, 2021 Measurement Date, the Village's proportionate share was 0.001346068, which was a decrease of 0.0003083 from its proportionate share measured as of June 30, 2020. Page 90 of 501 58 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 For the fiscal year ended September 30, 2021, the Village recognized pension expense of $(33) as follows: Service Cost $ 35,650 Interest Cost 184,589 Effect of economic/demographic gains or losses (difference between expected and actuarial experience) 9,608 Effect of assumptions changes or inputs 36,040 Member contributions (10,183) Projected investment earnings (144,538) Net difference between projected and actual investment earnings (111,491) Administrative expenses 292 Total $ (33) In addition, the Village reported deferred outflow of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Deferred Outflows/Inflows of Resources Outflows Inflows Effect of economic/demographic gains or losses (differences between expected and actual experience) $ 17,428 $ - Effect of assumptions changes or inputs 69,575 - Changes in proportion and differences between contributions and proportionate share of contributions 13,318 116,893 Net differences between projected and actual investment earnings - 354,736 Village Pension Plan contributions subsequent to the measurement date 7,399 - Total $ 107,720 $ 471,629 The deferred outflows of resources related to the Pension Plan contributions subsequent to the measurement date, totaling $7,399 will be recognized as a reduction of the net pension liability in the fiscal year ended September 30, 2022. Page 91 of 501 59 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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 2022 (65,397) 2023 (76,259) 2024 (101,013) 2025 (129,441) 2026 802 $ (371,308) 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, 2021, were based on the results of an actuarial experience study for the period July 1, 2013 — June 30, 2018. Valuation Date July 1, 2021 Measurement date June 30, 2021 Inflation 2.40% Salary increases including inflation 3.25% Mortality PUB-2010 base table varies by member category and sex, projected generationally with Scale MP-2018 details in valuation report Actuarial cost method 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 $ 454,720 $ 101,680 $ (193,422) Page 92 of 501 60 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Long -Term Expected Rate of Return The long-term expected rate of return assumption of 6.80% on consists of two building block components: 1) an inferred real (in excess of inflation) return of 4.30%, which is consistent with the 4.17% real return from the capital market outlook model developed by the FRS consulting actuary Milliman: and 2) a long-term average annual inflation assumption of 2.40% as adopted in October 2021 by the FRS Actuarial Assumption Conference. In the opinion of the FRS consulting actuary both components and the overall 6.80%return assumption were determined to be reasonable and appropriate per Actuarial Standards of Practice. The 6.80% reported investment return assumption chosen by the 2021 FRS Actuarial Assumption Conference for funding policy purpose. The table below contains a summary of Milliman's assumptions for each of the asset class in which the plan was invested at the time based on the long-term target asset allocation. Each asset class assumption is based on a consistent set of underlying assumptions and includes an adjustment for the inflation assumption. This assumptions are not based on historical returns, but instead are based on a forward -looking capital market economic model. Compound Annual Annual Target Arithmetic (Geometric) Standard Asset Class Allocation Return Return Deviation Cash 1.0% 2.1% 2.1% 1.1% Fixed income 20.0% 3.8% 3.7% 3.3% Global equity 54.2% 8.2% 6.7% 17.8% Real estate 10.3% 7.1 % 6.2% 13.8% Private equity 10.8% 11.7% 8.5% 26.4% Strategic investments 3.7% 5.7% 5.4% 8.4% Assumed Inflation - Mean 2.4% 1.2% 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. Parable's to the Pension Plan — At September 30, 2021 the Village reported a payable in the amount of $3,437 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 H 2.363, 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 eligible retirees and surviving beneficiaries of state -administered retirement systems in paying their health insurance costs and is administered by the Department of Management Services, Division of Retirement. Page 93 of 501 61 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Benefits Provided — For the fiscal year ended June 30, 2021, 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 one of the state -administered retirement system must provide proof of eligible health insurance coverage, which may include Medicare. Contributions — For the fiscal year ended June 30, 2021, 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 $4,602 for the fiscal year ended September 30, 2021. 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, 2021. 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, 2021, the Village reported a liability of $107,220 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 2020-2021 fiscal year contributions relative to the 2019-2020 fiscal year contributions of all participating members. At June 30, 2021, the Village's proportionate share was 0.000874089%, which was a decrease of 0.0000258% from its proportionate share measured as of June 30, 2020. 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, 2021, the Village recognized pension expense of $7,610 as follows: Service Cost $ 2,453 Interest Cost 2,436 Effect of economic/demographic gains or losses (difference between expected and actuarial experience) 740 Effect of assumptions changes or inputs 2,015 Projected investment earnings (80) Net difference between projected and actual investment earnings 44 Administrative expenses 2 Total $ 7,610 Page 94 of 501 62 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 In addition, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Deferred Outflows/Inflows of Resources Outflows Inflows 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 $ 3,588 $ 45 8,425 4,418 - 34,651 112 - 736 - Total $ 12,861 $ 39,114 The deferred outflows of resources related to the HIS Plan, totaling $736 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, 2022. 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 2022 2023 2024 2025 2026 Thereafter Amount $ (7,434) (2,368) (4,886) (6,486) (4,851) (964) $ (26,989) Discount Rate The discount rate used to measure the total pension liability was 2.16%. 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 95 of 501 63 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Discount rate 2.16% Long-term expected rate of return, net of investment expense N/A Bond Buyer General Obligation 20-Bond Municipal Bond Index 2.16% Actuarial Assumptions The actuarial assumptions that determined the total pension liability as of June 30, 2021, were based on certain results of an actuarial experience study of the FRS for the period July 1, 2013 - June 30, 2018. Valuation Date July 1, 2020 Measurement date June 30, 2021 Inflation 2.40% Salary increases including inflation 3.25% Mortality Generational PUB-2010 with Projection Scale MP-2018; details in valuation report Actuarial cost method Individual Entry Age Sensitivity Analysis The following presents the net pension liability of the HIS, calculated using the discount rate of 2.16%, 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 (1.16%) or one percentage point higher (3.16%) than the current rate. 1 % Current 1 % Decrease Discount Rate Increase 1.16% 2.16% 3.16% Village's proportionate share of net pension liability $ 123,957 $ 107,220 $ 93,508 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. Page 96 of 501 64 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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, 2020: FPTF PPTF GPTF Number of: Inactive members or beneficiaries currently receiving benefits 6 3 9 Inactive members entitled to but not yet receiving benefits 1 2 9 Active members 20 16 47 Total 27 21 65 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, 2020 measurement date were determined as of the beginning of the year, October 1, 2019 (based on actuarial valuation results as reported in the October 1, 2019 actuarial valuation). Using a measurement date of September 30, 2020 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, 2021. 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, 2019 Oct. 1, 2019 Oct. 1, 2019 Measurement Date of the net pension liability Sep. 30, 2020 Sep. 30, 2020 Sep. 30, 2020 Village's Fiscal Year Ended Date for Reporting Purposes Sep. 30, 2021 Sep. 30, 2021 Sep. 30, 2021 Page 97 of 501 65 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Pension Expense Fiscal Year Ended September 30, 2021 Based on Measurement Period Ended September 30, 2020 FPTF PPTF GPTF Service Cost Interest on the Total Pension Liability Current -Period Benefit Changes Employee Contributions (made negative for additions here) Projected Earnings on Plan Investments (made negative for additions here) Administrative Expense Other Changes in Plan Fiduciary Net Position (Contributions Transferred from 401(a) Plan) Other Changes in Total Pension Liability (Increase in State Contribution Reserve) Recognition of Outflow (Inflow) of Recourses due to Liabilities Recognition of Outflow (Inflow) of Recourses due to Assets Total Pension Expense $ 447,688 $ 304,219 $ 547,702 951,218 345,149 468,322 (6,147) - - (101,983) (70,327) (180,175) (826,357) (397,026) (445,395) 25,874 25,874 54,652 - 202,087 - - (202,087) - 85,439 (171,078) 31,637 (56,503) (29,142) (43,763) $ 519,229 S 7,669 $ 432,980 Page 98 of 501 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 The deferred outflow of resources, resulting from the Village's contributions to the Plans subsequent to the measurement date of September 30, 2020 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 Contribution subsequent to measurement date Total General: Difference between expected and actual experience Changes in assumptions Net difference between projected and actual earnings on pension plan investments Contribution subsequent to measurement date Total Deferred Outflows Deferred Inflows of of Resources Resources $ 363,621 $ 168,984 361,440 58,596 - 42,897 603,862 - $ 1,328,923 $ 270,477 Deferred Outflows Deferred Inflows of of Resources Resources $ 11,903 $ 229,548 73,975 749 - 1,219 192,268 $ 278,146 $ 231,516 Deferred Outflows Deferred Inflows of of Resources Resources $ 122,677 $ 196,786 257,151 - - 105,234 380,003 - $ 759,831 $ 302,020 67 Page 99 of 501 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Net Deferred Inflows and Deferred Outflows of Resources by Year to be Recognized in Future Pension Expenses Net Deferred Inflows and Outflows of Resources Fiscal Year Ending September 30, FPTF 2022 $ 26,146 2023 83,945 2024 128,789 2025 68,490 2026 77,884 Thereafter 69,330 Total $ 454,584 Net Pension Liability (Asset) PPTF GPTF $ (80,994) $ (29,171) 6,580 30,988 9,696 51,058 (30,116) (15,540) (14,112) 26,123 (36,692) 14,350 $ 145,638) $ 77,808 Below is a summary of components of the net pension liability (asset), by Plan, which was measured as of September 30, 2020 (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 2020 2020 2020 $ 14,767,838 $ 4,906,802 $ 7,280,856 13,058,965 6,171,161 7,129,156 $ 1,708,873 $ (1,264,359) $ 151,700 88.43% 125.77% 97.92% Page 100 of 501 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 In accordance with GASB Statement No. 67, information as of September 30, 2021 has been disclosed: 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 2021 2021 2021 $ 15,707,456 $ 5,225,838 $ 7,609,284 16,221,717 7,621,215 8,878,841 $ (514,261) $ (2,395,377) $ (1,269,557) 103.27% 145.84% 116.68% Below is a detail of the net changes in pension liability (asset): FIREFIGHTERS' PENSION TRUST CHANGES IN NET PENSION LIABILITY Balances at September 30, 2019 Changes for the year: Service cost Interest Changes of benefit terms Differences between expected and actual experience Changes in assumptions Contributions - employer Contributions - state Contributions - employee Net investment Income 'Benefit payments, including refunds of employee contributions Administrative expense Net Changes Balances at September 30, 2020 Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability $ 13,253,864 $ 11,572,288 $ 1,681,576 447,688 - 447,688 951,218 - 951,218 (6,147) - (6,147) 346,662 - 346,662 - 443,018 (443,018) - 171,940 (171,940) - 101,983 (101,983) - 1,021,057 (1,021,057) (225,447) (225,447) - - (25,874) 25,874 1,513,974 1,486,677 27,297 $ 14,767,838 $ 13,058,965 $ 1,708,873 Page 101 of 501 69 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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, 2019 $ 4,672,055 $ 5,649,465 $ (977,410) Changes for the year: Service cost 304,219 - 304,219 Tnterest 345,149 - 345,149 Changes of benefit terms - - - Differences between expected and actual experience (121,364) - (121,364) Changes of assumptions - - - Contributions - employer - - - Contributions - employer (from state) - 293,462 (293,462) Contributions - members - 70,327 (70,327) Net investment income - 477,038 (477,038) Benefit payments, including refunds of employee contributions (91,170) (91,170) - Administrative expense - (25,874) 25,874 Other (202,087) (202,087) - Net changes 234,747 521,696 (286,949) Balances at September 30, 2020 $ 4,906,802 $ 6,171,161 $ (1,264,359) Page 102 of 501 70 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 GENERAL EMPLOYEES' PENSION TRUST CHANGES IN NET PENSION LIABILITY Balances at September 30, 2019 Changes for the year: Service cost Interest Differences between expected and actual experience Changes of Assumptions Contributions - employer Contributions - member Net investment income Benefit payments, including refunds of employee contributions Administrative expense Net changes Balances at September 30, 2020 Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability $ 6,249,987 $ 6,211,730 $ 38,257 547,702 468,322 101,865 127,729 (214,749) 1,030,869 391,341 180,175 615,311 (214,749) (54,652) 917,426 547,702 468,322 101,865 (391,341) (180,175) (615,311) 54,652 113,443 $ 7,280,856 $ 7,129,156 $ 151,700 Sensitivity of the Net Pension Liability (Asset) to Changes in the Discount Rate A single discount rate of 7.00% as of September 30, 2021, same as of September 30, 2020, 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, 2021 same as of September 30, 2020. This single discount rate was based on the expected rate of return on pension plan investments of 6.5% for both years. 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 103 of 501 71 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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, 2020 6.00% 7.00% 8.00% Firefighters' $ 3,554,789 $ 1,708,873 $ 164,620 Police Officers' (637,394) (1,264,359) (1,773,219) Current Single Discount Rate 1% Decrease Assumption Increase Fiscal Year Ended September 30, 2020 5.50% 6.50% 7.50% General Employees' $ 1,181,143 $ 151,700 $ (701,396) In accordance with GASB Statement No. 67, information as of September 30, 2021 has been disclosed: Current Single 1% Discount Rate 1% Decrease Assumption Increase Fiscal Year Ended September 30, 2021 6.00% 7.00% 8.00% Firefighters' $ 1,274,086 $ (514,261) $ (2,103,715) Police Officers' (1,752,614) (2,395,377) (2,925,012) Current Single Discount Rate 1% Decrease Assumption Increase Fiscal Year Ended September 30, 2021 5.50% 6.50% 7.50% General Employees' $ (243,276) $ (1,269,557) $ (2,124,635) 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 I1I, 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 Page 104 of 501 72 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 certain provisions of Chapters 175 and 185, Florida Statutes, Part VI1, Chapter 112, Florida Statutes and the Internal Revenue Code. 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 1, 2013 for firefighters and October 1, 2014 for police officers are excluded from pensionable salary. For firefighters hired on or after October 1, 2010, fixed monthly remuneration including regular earnings, vacation pay and sick pay but excluding lump sum payments, overtime, bonuses, incentives and longevity. H. Average Final Compensation (AFC) The average of Compensation over the highest 5 years during the last 10 years of Credited Service. 1. 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. Page 105 of 501 73 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Benefit - For police officers hired before February 1, 2013 and firefighters hired before August 14, 2015 (firefighters: Credited Service only prior 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. Page 106 of 501 74 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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 supplemental benefit equal to $20 for each year o maximum of $600. The supplemental benefit ceases member or beneficiary. M. Non -Service Connected Disability receiving pension benefits will be paid a the member's Credited Service up to a upon the later of the death of the retired Eligibility - 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. Page 107 of 501 75 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 COLA: None Supplemental Benefit - All retirees and beneficiaries receiving pension benefits will be paid a supplemental benefit equal to $20 for each year of the member's Credited Service up to a maximum of $600. The supplemental benefit ceases upon the later of the death of the retired member or beneficiary. O. Other Pre -Retirement Death Eligibility - Members are eligible for survivor benefits after the completion of 6 or more years of Credited Service (10 years of Credited Service for firefighters hired on or after August 14, 2015). Benefit - The beneficiary will receive the actuarial equivalent of the member's accrued Normal Retirement Benefit taking into account compensation earned and service credited as of the date of death. Normal Form of Benefit - Payable for the life of the beneficiary. COLA: None Supplemental Benefit - All retirees and beneficiaries receiving pension benefits will be paid a supplemental benefit equal to $20 for each year of the member's Credited Service up to a maximum of $600. The supplemental benefit ceases upon the later of the death of the retired member or beneficiary. The beneficiary of a plan member with less than 6 years of Credited Service (10 years of Credited Service for firefighters hired on or after August 14, 2015) at the time of death will receive a refund of the member's accumulated contributions. P. Post Retirement Death Benefit determined by the form of benefit elected upon retirement. Q. Optional Forms In lieu of electing the Normal Form of benefit, the optional forms of benefits available to all retirees are the Life Annuity option or the 50%, 66 2/3%, 75% and 100% Joint and Survivor options. R. Vested Termination Eligibility - A member has earned a non -forfeitable right to Plan benefits after the completion of 6 years of Credited Service (10 years of Credited Service for firefighters hired on or after August 14, 2015). Benefit - The benefit is the member's accrued Normal Retirement Benefit as of the date of termination. Benefit begins on the member's Normal Retirement date. Alternatively, members can elect a reduced Early Retirement benefit any time after age 50. Page 108 of 501 76 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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 $512,395 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 109 of 501 77 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 W. Cost of Living Increases Not Applicable X. 13th Check Not Applicable Y. Deferred Retirement Option Plan Eligibility - Plan members who have met one of the following criteria are eligible for the DROP: (1) age 55 and 6 years of Credited Service (10 years of Credited Service for firefighters hired on or after August 14, 2015), or (2) age 52 and 25 years of Credited Service. Members must make a written election to participate in the DROP before the 27th year of employment. Benefit - The member's Credited Service and AFC are frozen upon entry into the DROP. The monthly retirement benefit as described under Normal Retirement is calculated based upon the frozen Credited Service and AFC. Firefighters have the optional sell back of vacation and sick leave when entering the DROP. Maximum DROP Period - The earlier of 5 years of participation in the DROP or 30 years of employment. There are three DROP plan participants with the assets balance rollforward of $859,265 at fiscal year ending September 30, 2021. 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 110 of 501 78 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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, 2021. FIREFIGHTERS' PENSION TRUST FUND STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30, 2021 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 Due to broker Total Liabilities Deferred Inflows of Resourses Deferred inflows Total Deferred Inflows of Resourses Net Position Restricted for Pension Benefits $ 399,680 11,257,174 3,042,922 1,615,856 15.915.952 25,754 12,362 18,066 16,371,814 11,482 95,343 106,825 43,272 43,272 $ 16,221,717 79 Page 111 of 501 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 FIREFIGHTERS' PENSION TRUST FUND STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Additions Contributions: State of Florida Employer Employee Total Contributions Investment earnings Net appreciation in fair value of investment Loss on sale of investments Interest and dividends Total investment earnings Less investment expenses Net investment earnings Miscellaneous Total Additions Deductions Benefits paid Administrative expenses Total Deductions Change in Net Position Net Position Restricted for Pension Benefits Beginning of year End of year S 193,278 410,584 104,656 708J18 2,925,996 (384,567) 193,186 2,734,615 (37,012) 2,697,603 3,406,121 216,799 26,570 243,369 3,162,752 13,058,965 S 16,221,717 Page 112 of 501 80 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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, 2021. POLICE OFFICERS' PENSION TRUST FUND STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30, 2021 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 $ 187,272 5,272,250 1,425,140 756,779 7,454,169 12,535 9,597 5,793 4,091 7,673,457 7,588 44,654 52,242 $ 7,621,215 Page 113 of 501 81 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 POLICE OFFICERS' PENSION TRUST FUND STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Additions Contributions: State of Forida $ 91,649 Employer 100,618 Employee 75,796 Total Contributions 268,063 Investment earnings Net appreciation in fair value of investments 1,373,894 Loss on sale of investments (179,827) Interest and dividends 90,549 Total investment earnings 1,284,616 Less investment expenses (24,782) Net investment earnings 1,259,834 Total Additions 1,527,897 Deductions Benefits paid 49,095 Administrative expenses 28,748 Total Deductions 77,843 Change in Net Position 1,450,054 Net Position Restricted for Pension Benefits Beginning of year 6,171,161 End of year $ 7,621,215 Page 114 of 501 82 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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 11, 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. Page 115 of 501 83 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 1. 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 116 of 501 84 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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 117 of 501 85 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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 Page 118 of 501 86 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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, 2021. GENERAL EMPLOYEES' PENSION TRUST FUND STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30.2021 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 Due to broker Total Liabilities Net Position Restricted for Pension Benefits $ 150,501 5,770,918 2,051,761 900,888 8,723,567 30,354 9,665 14,218 8,928,305 24,525 24,939 49,464 Page 119 of 501 87 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 GENERAL EMPLOYEES' PENSION TRUST FUND STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Additions Contributions: Employer S 380,003 Employee 171,792 Total Contributions 551,795 Investment earnings Net appreciator in fair value of investments 1,603,124 Loss on sale of investments (239,163) Interest and dividends 115,669 Total investment earnings 1,479,630 Less investment expenses (44,312) Net investment earnings 1,435,318 Miscellaneous 392 Total Additions 1,987,505 Deductions Benefits paid 178,474 Refunds of contributions 18,820 Administrative expenses 40,526 Total Deductions 237,820 Change in Net Position 1,749,685 Net Position Restricted for Pension Benefits Beginning of year 7,129,156 End of year S 8,878,841 Page 120 of 501 88 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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 9/30/20 $ 151,700 $ 759,831 $ 302,020 $ 432,980 Firefighters Pension Trust Fund 9/30/20 1,708,873 1,328,923 270,477 519,229 Police Pension Trust Fund 9/30/20 1,264,359 278,146 231,516 7,669 FRS 6/30/21 101,680 107,720 471,629 (33) "is 6/30/21 107,220 12,861 39,114 7,610 Total $ 1,264,359 $ 2,069,473 $ 2,487,481 $ 1,314,756 $ 967,455 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, 2021 was $182,492. Employee contributions to the Plan for fiscal year ended September 30, 2021 were S12,418; the Village's contributions were $26,593. Page 121 of 501 89 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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, 2020: 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, 2021, the Village reported an OPEB liability of $447,273 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 and rolled forward to the September 30, 2020 measurement date. Page 122 of 501 90 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 For the fiscal year ended September 30, 2021, the Village recognized OPEB expense of $(57,023). Total OPEB Liability - Beginning (September 30, 2019) $ 390,250 Service cost 57,961 Interest on the Total OPEB Liability 12,064 Changes in assumptions and other inputs 6,038 Benefit payments (19,040) Net change in Total OPEB Liability 57,023 Total OPEB Liability - Ending (September 30, 2020) $ 447,273 In addition, the Village reported an outflow of resources due to the benefits paid after the measurement date in the amount of $20,244. 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, 2020 Roll forward procedures The Total OPEB Liability was rolled forwadr twelve months from the Valuation Date to the Measurement Date usind standard actuarial techniques. Actuarial Cost Method Entry age normal Inflation 2.25 % Discount Rate 2.41% Salaty Increase 6.00% Retirement Age Varies based on several factors including plan -specific 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%. Other infornation Notes Changes in assumptions and other inputs include the change in the discount rate from 2.75% at the beginning of the measurement period to 2.41% as of September 30, 2020. This change is reflected in the Schedule of Changes in Total OPEB Liability. There were no benefit changes during the year. Page 123 of 501 91 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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 roll -forward calculation, the municipal bond rate is 2.41% (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 2.75% 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 2.41%, 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 1.41% Assumption 2.41 % 1 % Increase 3.41% Village's OPEB liability $ 460,040 $ 447,273 $ 428,112 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 $ 400,637 $ 447,273 $ 501,265 Page 124 of 501 92 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 H. Construction and Other Commitments The Village has active construction projects as of September 30, 2021. The projects include various water, stormwater, architect services for the new recreation facility. At year end, The Village had the following significant related to uncompleted contacts for construction and equipment: Description Remaining Commitment Governmental Activities Major funds General Fund Capital Projects Fund (recreation facility) Total Major Funds Non -Major Funds Total Governmental Activities Business -type Activities Major funds Water Utility (variety of projects) Total Major Funds Non -Major Funds - Stormwater (variety of projects) Total Business -type Activities 55,710 2,217,084 2,272,794 2,272,794 461,549 461,549 47,352 508,901 Loan proceeds are used to fund Govermnental commitments and Business -type 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. L Contracted Services —Refuse and Recycling Collection The Village's agreement with Waste Management, Inc. of Florida is for 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. Page 125 of 501 93 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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. 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 $8,456 related to policy year 2019/2020. 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 2020/2021 resulted in the Village owing a total of $4,934, due to payroll changes that impacted the workers' compensation premium. K. Lease Obligations Capital Lease - Computer Equipment The Village entered into a master equipment lease with Truist Bank, a North Carolina banking corporation in the amount of $168,390 with funding on February 18, 2021 for the financing of computer hardware equipment. The applicable interest rate is 1.670% and interest and principal payments are due annually on February 18th. This is a three (3) year lease with three (3) payments. Lease maturing at February 18, 2024. The following is the schedule of the of the future minimum lease payments under this capital lease arrangement at September 30, 2021: Fiscal Year Ending September 30: Amount 2022 $ 58,015 2023 58,015 2024 58,015 Total minimum lease payments 174,045 Less amount presenting interest (5,655) Present Value of Future Minimum Lease Payments $ 168,390 Page 126 of 501 94 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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, 2021: Fiscal Year Ending September 30: Amount 2022 $ 53,785 2023 53,785 2024 53,785 2025 56,251 2026 27,815 Total minimum lease payments 245,421 Less amount presenting interest (20,335) Present Value of Future Minimum Lease Payments $ 225,086 Capital Lease — Police Tasers The Village entered into a 60-month capital lease with Axon Enterprise, Inc. in the amount of $31,100 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, 2021: Fiscal Year Ending September 30: 2022 Amount $ 6,620 Total minimum lease payments 6,620 Present Value of Future Minimum Lease Payments $ 6,620 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 9/30/2021. 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 1lth. 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, 2021: Page 127 of 501 95 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Fiscal Year Ending September 30: 2022 2023 Total minimum lease payments Less amount representing interest Present Value of Future Minimum Lease Payments L. Long -Term Liabilities Amount 48,794 48,794 97,588 (4,141) $ 93,447 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 1 to 18 years and have interest rates from 2.18% to 4.28% per year. The outstanding notes from direct borrowings and direct placements related to governmental activities of $7,254,007 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 notcholder may declare all outstanding amounts become immediately due. The Village's outstanding notes from direct borrowings related to its business -type activities of $2,721,115 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. The Notes outstanding at September 30, 2021 are as follows: Signed Original Interest Final Outstanding Promissory Notes Payable Date Borrowing Rate Maturity 9/30/2021 Government Activities Capital Improvements/Rec. Building 1/21/2021 $ 6,890,000 Public Improvements/P.S. Building 9/13/2002 5,000,000 Total Government Activities Business -type Activities Water Plant Expansion 6/30/2004 $ 645,170 Public Improvement (Refunding) 7/14/2008 6,554,935 Total Business -type Activities 2.18% 10/01/2040 $ 6,890,000 4.28% 9/13/2022 364,007 $ 7,254,007 4.96% 4/1/2021 $ - 3.69% 3/l/2028 2,721,115 $ 2,721,115 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, 2021 was $1,199,138,192. As of September 30, 2021 the Village did not exceed the debt limit of $119,913,819. Changes in Long -Term Liabilities Changes in the Village's long-term liabilities for the fiscal year ended September 30, 2021 are as follows: Page 128 of 501 96 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Governmental Activities Beginning Ending Due Within Balance Additions Deletions Balance One Year Governmental Activities Note Payable - 2021 $ - $ 6,890,000 $ - $ 6,890,000 $ 197,000 Note Payable - 2002 712,790 - 348,783 364,007 364,007 Capital leases 256,234 318,623 81,314 493,543 157,066 Compensated absences 782,847 166,650 158,098 791,398 105,790 Total Governmental Activities $ 1,751,871 $ 7,375,273 $ 588,195 $ 8,538,948 $ 823,863 * For governmental activities, the liability for compensated absences and pension 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) $ 36,895 $ - $ 36,895 $ - $ - Note Payable (2008) 3,082,217 - 361,102 2,721,115 376,728 Compensated absences 169,177 1,083 26,041 144,219 15,000 Total Business -type Activities $ 3,288,289 $ 1,083 $ 424,038 $ 2,865,334 $ 391,728 The debt service requirements for the Village's notes are as follows: Governmental Activities Fiscal Year Ending September 30: 2022 2023 2024 2025 2026 2027-2041 Total Business -type Activities Fiscal Year Ending September 30: 2022 2023 2024 2025 2026 2027-2028 Total Promissory Notes Principal Interest Total $ 561,007 $ 156,549 $ 717,556 288,000 142,768 430,768 294,000 136,424 430,424 301,000 129,939 430,939 307,000 123,312 430,312 5,503,000 948,028 6,451,028 $ 7,254,007 $ 1,637,020 $ 8,891,027 Promissory Notes Principal Interest Total $ 376,728 $ 94,117 $ 470,845 391,823 79,732 471,555 406,556 64,977 471,533 420,915 49,309 $ 470,224 437,238 33,273 $ 470,511 687,855 18,382 706,237 $ 2,721,115 $ 339,790 $ 3,060,905 Page 129 of 501 97 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Total Primary Government Debt Fiscal Year Ending September 30: 2022 2023 2024 2025 2026 2027-2041 Total M. Fund Balance Total Primary Government Debt Principal Interest Total $ 937,736 $ 250,666 $ 1,188,402 679,823 222,501 902,324 700,556 201,401 901,957 721,915 179,248 901,163 744,238 156,585 900,823 6,190,854 966,409 7,157,263 $ 9,975,122 $ 1,976,810 $ 11,951,932 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 (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. At September 30, 2021 the unassigned fund balance of the general fund was 32.70% and is above the ininintum target level. It is a 18.54% increase compared to the prior fiscal year. N. Interfund Transfers The composition of interfund transfers for the fiscal year ended September 30, 2021 is as follows: Interfund Transfers Transfers In Capital Capital General Fund Improvement Fund Projects Fund Total Transfers Out (1) (2) (2) General Fund Building Fund Capital Improvement Fund Water Fund Total Interfund Transfers 10,103 21,891 $ 31,994 460,110 $ 208,050 196,000 $ 460,110 $ 404,050 $ 668,160 10,103 196,000 21,891 $ 896,154 (1) Project costs participation from other funds. (2) Transfer is to restrict infrastructure and utility tax to fund capital projects and improvements. Page 130 of 501 98 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 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. Page 131 of 501 99 Agenda Item #4. REQUIRED SUPPLEMENTARY INFORMATION Page 132 of 501 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA REQUIRED SUPPLEMENTARY INFORI\IATION BUDGETARY COMPARISON SCHEDULE GENERAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues Ad valorem taxes $ 7,690,000 S 7,690,000 $ 7,848,744 $ 158,744 Other taxes 1,784,150 1,784,150 1,966,890 182,740 Charges for services 1,427,150 1,428,950 2,081,958 653,008 Intergovernmental 868,350 1,078,952 2,639,327 1,560,375 Intragovernmental 1,031,250 1,031,250 1,031,297 47 Licenses and permits 500 500 1,050 550 Franchise fees 462,000 462,000 509,963 47,963 Rents and royalties 228,800 228,800 227,006 (1,794) Miscellaneous 20,700 20,700 54,949 34,249 Fines and forfeitures 18,500 18,500 22,806 4,306 Grants, contributions and donations 1,600 1,600 100 (1,500) Investment earnings 62,000 62,000 7,550 (54,450) Total Revenues 13,595,000 13,807,402 16,391,640 2,584,238 Expenditures Council 64,100 64,100 53,870 10,230 Manager 293,650 293,650 292,053 1,597 Human resources 366,900 364,900 341,470 23,430 Clerk 347,250 347,250 316,736 30,514 Finance 691,700 691,700 685,343 6,357 Legal 180,000 201,050 195,445 5,605 Comprehensive planning 164,000 164,000 157,626 6,374 General government 276,700 302,600 252,415 50,185 Information technology 442,650 442,650 395,703 46,947 Police 3,242,250 3,272,716 3,182,379 90,337 Code enforcement 91,250 91,250 84,949 6,301 Fire 4,009,950 4,117,984 4,196,320 (78,336) Public works 1,489,000 1,481,128 1,403,950 77,178 Parks and recreation 670,100 660,000 606,363 53,637 Capital outlay 521,500 884,585 634,329 250,256 Debt service: Principal 494,350 476,850 430,097 46,753 Interest 47,750 76,956 59,662 17,294 Total Expenditures 13,393,100 13,933,369 13,288,710 644,659 Excess (Deficiency) of Revenues Over Expenditures 201,900 (125,967) 3,102,930 3,228,897 Other Financing Sources (Uses) Transfers in - - 311,994 31,994 Transfers out (642,300) (613,094) (668,160) (55,066) Proceeds on sale of capital assets 44,400 44,400 26,524 (17,876) Issuance of debt 396,000 396,000 318,623 (77,377) Total Other Financing Sources (Uses) (201,900) (172,694) (291,019) (118,325) Net Change in Fund Balance - (298,661) 2,81 1,911 3,110,572 Fund Balance - Beginning 3,394,469 3,394,469 3,394,469 - Fund Balance - Ending $ 3,394,469 S 3,095,808 $ 6,206,380 $ 3,110,572 See note to budgetary comparison sclle&p 133 Of 501 100 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA NOTE TO THE BUDGETARY COMPARISON SCHEDULE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Note 1— Budgets and Budgetary Accounting The Village is required to present a budget to actual comparison for the general fund and any major special revenue fund with a legally adopted annual budget. The Village may not include nonmajor special revenue funds, or funds of other fund types. This fiscal year, the Village presents this schedule for the general fund only. Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. For budgeting purposes, current year encumbrances are not treated as expenditures. All budgets are legally enacted through passage of a resolution. Although the Village Council requires all inter -department budget amendments to go before the Village Council for approval, the budget was adopted on a fund basis. 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 buds is the budget in place at the start of the fiscal year, which includes all of the following: The budget passed by the Village Council +Subsequent amendments made prior to the start of the fiscal year +Carryovers from the previous year =Original budget The flnal budge includes all adjustments to the budget applicable to the fiscal year, even if they take place after the close of the fiscal year. During the year, total supplemental appropriations of $511,063 were adopted for the General Fund. Appropriations are legally controlled at the department level and expenditures may not legally exceed budgeted appropriations at that level. Page 134 of 501 101 Agenda Item #4. 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 2021 2020 2019 2018 2017 2016 2015 2014 $ 470,979 $ 447,688 $ 333,395 $ 392,933 $ 366,393 $ 349,504 $ 334,559 $ 312,030 1,059,130 951,218 878,984 827,256 788,885 778,642 679,400 582,897 - (6,147) 22,243 - - - 318,787 - (50,743) 346,662 (41,742) 71,910 (22,327) (401,835) 108,010 450 (322,948) - 378,870 - (136,724) 300,255 - (216,799) (216,799) (216,799) (518,495) (163,805) (438,149) (61,913) (53,637) - (8,649) (1,852) - - (151,438) (1517438) (242,266) 118,555 30,162 939,618 1,513,974 1,354,951 622,166 679,132 345,151 1,497,398 871,902 14,767,838 13,253,864 11,898,913 11,276,747 10,597,615 10,252,464 8,755,066 7,883,164 $ 15,707,456 $ 14,767,838 $ 13,253,864 $ 11,898,913 $ 11,276,747 $ 10,597,615 $ 10,252,464 $ 8,755,066 $ 410,585 $ 443,018 $ 332,559 $ 182,198 $ 209,615 $ 60,162 $ 335,771 $ 351,652 193,278 171,939 156,424 307,956 300,401 394,709 189,010 100,617 104,656 101,983 94,343 90,424 79,564 68,982 64,721 65,803 2,697,602 1,021,058 358,277 943,640 974,383 609,318 77,213 567,786 (216,799) (216,799) (216,799) (518,495) (163,805) (438,149) (61,913) (53,637) (8,648) (1,852) (26,570) (25,874) (30,043) (31,858) (18,789) (27,450) (27,290) (18,921) - - - (151,438) (151,438) (242,266) - - 3,162,752 1,486,677 694,761 822,427 1,228,079 425,306 577,512 1,013,300 13,058,965 11,572,288 10,877,527 10,055,100 8,827,021 9,401,715 7,824,203 6,810,903 $ 16,221.717 $ 13,058,965 $ 11,572,288 $ 10,877,527 $ 10,055,100 $ 8,827,021 $ 8,401,715 $ 7,824,203 $ (514,261) $ 1,708,873 $ 1,681,576 $ 1,021,386 $ 1,221,647 $ 1,770,594 $ 1,850,749 $ 930,863 103.27% 88.43% 87.31% 91.42% 89.17% 83.29% 81.95% 89.37% $ 1,744,261 $ 1,699,718 $ 1,572,385 $ 1,507,072 $ 1,446,616 $ 1,379,650 $ 1,294,416 $ 1,316,060 (29.48)% 100.54% 10694% 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. Page 135 of 501 102 Agenda Item #4. 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 $ 416,665 $ 422,107 S (5,442) $ 1,316,060 32.07% 2015 403,211 406,226 (3,015) 1,294,416 31.38% 2016 454,871 454,871 - 1,379,650 32.97% 2017 498,504 510,016 (11,512) 1,446,616 35.26% 2018 485,729 490,154 (4,425) 1,507,072 32.52% 2019 474,074 488,983 (14,909) 1,572,385 31.10% 2020 614,958 614,958 - 1,699,718 36.18% 2021 603,863 647,135 (43,272) 1,744,261 37.10% Notes to Schedule Valuation Date 10/1/2019 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 norinal 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, 2018 Actuarial Valuation Report, as mandated by Chapter 112.63, Florida Statutes. Other information See discussion of valuation results in the October 1, 2019 Actuarial Valuation report, dated January 31, 2020. This schedule is presented as required, however, until a full 10-year trend is compiled, information is presented for those years available. Page 136 of 501 103 Agenda Item #4. VILLAGE OF TEQUESTA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF INVESTMENT RETURNS FIREFIGHTERS' PENSION TRUST FUND Fiscal Year Ended September 30, 2021 2020 2019 2018 2017 2016 2015 2014 Annual money -weighted rate of return, net of investment expenses 20.27% 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. Page 137 of 501 104 Agenda Item #4. 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, Total Pension Lability Seivice cost Interest Benefit changes Difference between expected and actual experience Changes of assumptions Benefit payments Refunds Other (increase in State contribution reserve) 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) 4 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 2021 2020 2019 2018 2017 2016 2015 2014 $ 327,856 $ 304,219 $ 100,925 $ 98,621 $ 80,711 $ 110,495 $ 126,703 $ 161,156 364,708 345,149 215,318 193,922 200,356 201,452 213,603 t69,526 - - 821,933 - - - (39,467) (135,030) (121,364) (85,146) 34,217 (329,387) (226,384) (391,613) (87.966) 120,973 - (30,633) 75,463 (49,095) (49,095) (40,184) (27,708) (27,708) (27,708) (30,312) (10,073) - (42,075) - (52,038) (43,331) (101,437) (202,087) 649,262 - - - 319,036 234,747 1,782,981 299,052 (106,661) 81,280 (121,086) 277,278 4,906,802 4,672,055 2,889,074 2,590,022 2,696,683 2,615,403 2,736,489 2,459,211 $ 5,225,938 $ 4,906,802 $ 4,672,055 $ 2,889,074 $ 2,590,022 $ 2,696,683 $ 2,615,403 $ 2,736,489 $ 100,619 $ - $ 317,338 $ 175,116 $ 40,829 $ 38,638 $ 80,782 $ 111,164 193,086 293,462 649,262 - - - - - 75,796 70,327 65,446 31,338 16,998 17,067 20,545 25,888 1,259,833 477,038 143,441 344,620 357,477 306,504 20,718 219,219 (49,095) (49,095) (40,184) (27,708) (27,708) (27,708) (30,312) (10,073) - (42,075) (52,038) - (43,331) (28,748) (25,874) (30,034) (31,858) (18,788) (27,026) (27,967) (18,677) (101,437) (202,087) 297,733 * - - - - - 1,450,054 521,696 1,403,002 491,508 368,808 255,437 63,766 284,190 6,171,161 5,649,465 4,246,463 3,754,955 3,386,147 3,130,710 3,066,944 2,782,754 $ 7,621,215 $ 6,171,161 $ 5,649,465 $ 4,246,463 $ 3,754,955 $ 3,386,147 $ 3,130,710 $ 3,066,944 $ (2,395.377) $ (1,264,359) $ (977,410) $ (1,357,389) $ (1,164,933) $ (689,464) $ (515,307) $ (330,455) 145.84`90 125.77% 120.92% 146.98% 144.98% 125.57% 119.70% 112.08% $ 1,304,196 $ 1,229,934 $ 1,153,957 $ 582,166 $ 339,957 $ 341,342 $ 410,897 $ 517,760 (183.67)% (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 and 2021. ** 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. Page 138 of 501 105 Agenda Item #4. 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 $ 111,164 $ 111,164 $ - $ 517,760 21.47% 2015 80,782 80,782 - 410,897 19.66% 2016 37,377 38,638 (1,261) 341,342 11.32% 2017 40,659 40,829 (170) 339,957 12.01% 2018 175,116 175,116 - 582,166 30.08% 2019 317,338 317,338 - 1,153,957 27.50% 2020 293,462 293,462 - 1,229,934 23.86% 2021 293,705 293,705 - 1,304,196 22.52% Notes to Schedule Valuation Date 10/01/2019 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, 2018 Actuarial Valuation Report, as mandated by Chapter 112.63, Florida Statutes. Other Information: See discussion of valuation results in the October 1, 2019 Actuarial Valuation report, dated January 31, 2020 This schedule is presented as required, however, until a full 10-year trend is compiled, information is presented for those years available. Page 139 of 501 106 Agenda Item #4. VILLAGE OF TEQUESTA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF INVESTMENT RETURNS POLICE OFFICERS' PENSION TRUST FUND Fiscal Year Ended September 30, 2021 2020 2019 2018 2017 2016 2015 2014 Annual money -weighted rate of return, net of investment expenses 20.27% 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. Page 140 of 501 107 Agenda Item #4. 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, 2021 2020 2019 2018 2017 2016 2015 2014 Total Pension Lability Service cost $ 470,535 $ 547,702 $ 461,164 $ 447,305 $ 380,051 $ 359,231 $ 300,325 $ 278,029 Interest 497,428 468,322 425,911 373,859 329,590 285,954 253,701 216,124 Benefit changes - - - - - - Difference between actual and expected experience (332,590) 101,865 (156,013) 66,509 (112,103) (40,094) (157,539) Assumption changes (109,651) 127,729 - 362,784 - Benefit payments (178,474) (161,419) (160,588) (79,332) (41,959) (16,657) (11,918) (8,534) Refunds (18,820) (53,330) (48,114) (27,837) (13,511) (16,161) (5,959) (4,454) Net Change in Total Pension Liability 328,428 1,030,869 522,360 780,504 904,952 572,273 378,610 481,165 Total Pension Liability - Beginning 7,280,856 6,249,987 5,727,627 4,947,123 4,042,171 3,469,898 3,091,288 2,610,123 Total Pension Liability - Ending (a) $ 7,609,284 $ 7,280.856 $ 6,249,987 $ 5,727,627 $ 4,947,123 $ 4,042,171 $ 3,469,898 $ 3,091,288 Plan Fiduciary Net Position Contributions - employer and State $ 380,003 $ 391,341 $ 362,848 $ 350,412 $ 305,931 $ 201,704 $ 194,376 $ 184,627 Contributions - member 171,792 180,175 161,553 156,434 143,361 134,829 115,288 100,560 Net investment income 1,435,710 615,311 235,519 417,228 562,828 191,848 (36,136) 308,314 Benefit payments (178,474) (161,419) (160,588) (79,332) (41,859) (16,657) (11,918) (8,534) Refunds (18,820) (53,330) (48,114) (27,837) (13,511) (16,161) (5,959) (4,454) Administrative expense (40,526) (54,652) (48,241) (43,300) (37,296) (44,359) (38,098) (25,678) Net Change in Plan Fiduciary Net Position 1,749,685 917,426 502,977 773,605 919,454 451,204 217,553 554,835 Plan Fiduciary Net Position - Beginning 7,129,156 6,211,730 5,708,753 4,935,148 4,015,694 3,564,490 3,346,937 2,792,102 Plan Fiduciary Net Position - Ending (b) $ 8,878,841 $ 7,129,156 $ 6,211,730 $ 5,708,753 $ 4,935,148 $ 4,015,694 $ 3,564,490 $ 3,346,937 Net Pension Liability (Asset) - Ending (a) - (b) $ (1,269,557) $ 151,700 $ 38,257 $ 18,874 $ 11,975 $ 26,477 $ (94,592) $ (255,649) Plan Fiduciary Net Position as a Percentage of Total Pension Liability 116.68% 97.92% 99.39% 99.67% 99.76% 99.34% 102.73% 108.27% Covered Payroll $ 3,435,840 $ 3,603,500 $ 3,231,060 $ 3,128,680 $ 2,867,220 $ 2,696,572 $ 2,305,760 $ 2,011,191 Net Pension Liability (Asset) as a Percentage of Covered Payroll (36.95)% 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. Page 141 of 501 108 Agenda Item #4. VILLAGE OF TEQUESTA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF VILLAGE CONTRIBUTIONS GENERAL EMPLOYEES' 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 $ 184,627 $ 184,627 $ - $ 2,011,191 9.18% 2015 194,376 194,376 - 2,305,760 8.43% 2016 201,704 201,704 - 2,696,572 7.48% 2017 235,972 305,931 (69,959) 2,867,220 10.67% 2018 350,412 350,412 - 3,128,680 11.20% 2019 362,848 362,848 - 3,231,060 11.23% 2020 391,341 391,341 - 3,603,500 10.86% 2021 380,003 380,003 - 3,435,840 11.06% Notes to Schedule Valuation Date 10/01/2019 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 2.25% Salary increases 4.75% to 5.50%, including inflation, based on years of service. Investment rate of return 6.50% Retirement age 100% if eligible for normal retirement before age 62, else age based from 30% at age 62 to 100% at age 70; 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. These are the same rates used for a Regular Class members of the FRS in the July 1, 2018 Actuarial Valuation Report, as mandated by Chapter 112.63, Florida Statutes. Other information See discussion of valuation results from the October 1, 2019 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. Page 142 of 501 109 Agenda Item #4. VILLAGE OF TEQUESTA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF INVESTMENT RETURNS GENERAL EMPLOYEES' PENSION TRUST FUND Fiscal Year Ended September 30, 2021 2020 2019 2018 2017 2016 2015 2014 Annual money -weighted rate of return, net of investment expenses 19.38% 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 wick information is available. Page 143 of 501 110 Agenda Item #4. 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 2020 2019 2018 2017 $ 57,961 $ 50,439 $ 51,371 $ 53,040 12,064 25,960 22,929 19,739 - (309,165) - - 6,038 12,964 (13,500) (14,020) (19,040) (34,636) (39,712) (37,725) 57,023 (254,438) 21,088 21,034 390,250 644,688 623,600 602,566 $ 447,273 $ 390,250 $ 644,688 $ 623,600 $ 7,597,995 $ 7,284,363 $ 6,694,984 $ 5,708,842 5.89% 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 2.41% from 2.75%. 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% 2029 4.75% Ultimate health cost trend 4.00% Salary increases 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. Page 144 of 501 111 Agenda Item #4. VILLAGE OF TEQUESTA REQUIRED SUPPLEMENTARY INFORMATION FLORIDA RETIREMENT SYSTEM (FRS) SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY Fiscal Year Ended June 30, 2021 2020 2019 2018 2017 2016 2015 2014 2013 Proportion of the net pension liability 0.00135% 0.00165% 0.00158% 0.00166% 0.00189% 0.00227% 0.00223% 0.00291% 0.00397% Proportionate share of the net pension liability $ 101,680 $ 717,034 $ 543,212 $ 501,303 $ 561,097 $ 572,594 $ 287,876 $ 177,517 $ 683,841 Covered payroll $ 297,735 $ 222,110 $ 285,622 $ 369,696 $ 391,643 $ 492,907 $ 508,785 $ 635,666 $ 716,621 Proportionate share of the net pension liability as a percentage of its covered payroll 34.15% 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 96.40% 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. Page 145 of 501 112 Agenda Item #4. 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, 2021 2020 2019 2018 2017 2016 2015 2014 2013 Proportion of the net pension liability 0.00087% 0.00090% 0.00094% 0.00113% 0.00121% 0.00160% 0.00168% 0.00214% 0.00247% Proportionate share of the net pension liability $ 107,220 $ 109,870 $ 104,854 $ 119,802 $ 129,440 $ 196,087 $ 171,031 $ 200,044 $ 214,766 Covered payroll $ 297,735 $ 222,110 $ 285,622 $ 369,696 $ 391,643 $ 492,907 $ 508,785 $ 635,666 $ 716,621 Proportionate share of the net pension liability as a percentage of its covered payroll 36.01% 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 3.56% 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. Page 146 of 501 113 Agenda Item #4. VILLAGE OF TEQUESTA REQUIRED SUPPLEMENTARY INFORMATION FLORIDA RETIREMENT SYSTEM (FRS) SCHEDULE OF VILLAGE CONTRIBUTIONS Fiscal Year Ended September 30, 2021 2020 2019 2018 2017 2016 2015 2014 2013 Contractually required contribution $ 44,150 $ 58,313 $ 52,059 $ 48,540 $ 47,988 $ 62,966 $ 43,642 $ 58,404 $ 72,698 Contributions in relation to the contractually required contribution (44,150) (58,313) (52,059) (48,540) (47,988) (62,966) (43,642) (58,404) (72,698) Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - Covered payroll $ 277,220 $ 233,492 $ 261,899 $ 362,908 $ 382,869 $ 451,085 $ 484,772 $ 569,299 $ 651,093 Contributions as a percentage of covered payroll 15.93% 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. Page 147 of 501 114 Agenda Item #4. VILLAGE OF TEQUESTA REQUIRED SUPPLEMENTARY INFORMATION HEALTH INSURANCE SUBSIDY PROGRAM (HIS) SCHEDULE OF VILLAGE CONTRIBUTIONS Fiscal Year Ended September 30, 2021 2020 2019 2018 2017 2016 2015 2014 2013 Contractually required contribution $ 4,602 $ 3,876 $ 4,348 $ 6,024 $ 6,356 $ 7,488 $ 5,381 $ 6,832 $ 8,204 Contributions in relation to the conractually required contribution (4,602) (3,876) (4,348) (6,024) (6,356) (7,488) (5,381) (6,832) (8,204) Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - Covered payroll $ 277,220 $ 233,482 $ 261,899 $ 362,908 $ 382,869 $ 451,085 $ 484,772 $ 569,299 $ 651,093 Contributions as a percentage of covered payroll 1.66% 1.66% 1.66% 1.66% 1.66% 1.66% 1.11% 1.20% 1.26% The infonnation 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. Page 148 of 501 115 Agenda Item #4. COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Page 149 of 501 Agenda Item #4. NONMAJOR GOVERNMENTAL FUNDS Page 150 of 501 Agenda Item #4. 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 Improvement Fund Capital Improvement 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 improvement fund type is permitted rather than mandated for financial reporting purposes. Capital improvement 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. Page 151 of 501 Agenda Item #4. Assets Cash Receivables, net Inventories Prepaid items Total Assets Liabilities and Fund Balances Liabilities Accounts payable Accrued liabilities Due to other governments Total Liabilities Fund Balances Nonspendable: Inventories Prepaid Items Restricted for: Infrastructure Building Law Enforcement Capital Projects Assigned to: VILLAGE OF TEQUESTA, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2021 Capital Special Revenue Projects Total Special Law Capital Nonmajor Building Enforcement Improvement Governmental Fund Fund Fund Funds $ 882,805 $ 145,433 $ 355,164 $ 1,383,402 485 6 5 496 89 - - 89 11,366 13,352 - 24,718 $ 894,745 $ 158,791 $ 355,169 $ 1,408,705 9,742 1,750 1,878 13,370 4,874 - - 4,874 3,742 - - 3,742 18,358 1,750 1,878 21,986 89 - - 89 11,366 13,352 - 24,718 - - 59,172 59,172 864,932 - - 864,932 - 143,689 - 143,689 - - 262,429 262,429 Capital Projects - - 31,690 31,690 Total Fund Balances 876,387 157,041 353,291 1,386,719 Total Liabilities and Fund Balances $ 894,745 $ 158,791 $ 355,169 $ 1,408,705 Page 152 of 501 116 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONNIAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Charges for services Intergovernmental Licenses and permits Fines and forfeitures Investment earnings Revenues Expenditures Current: Public safety Transportation Leisure services Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over (Under) 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 Nonmajor Building Enforcement Improvement Governmental Fund Fund Fund Funds $ 31,554 $ - $ - $ 31,554 1,813 - - 1,813 871,235 - - 871,235 - 91,516 - 91,516 1,135 131 347 1,613 905,737 91,647 347 997,731 622,816 19,582 - 642,398 - - 99,763 99,763 - - 3,600 3,600 52,364 - 126,458 178,822 675,180 19,582 229,821 924,583 230,557 72,065 (229,474) 73,148 - - 460,110 460,110 (10,103) - (196,000) (206,103) (10,103) - 264,110 254,007 220,454 72,065 34,636 327,155 655,933 84,976 318,655 1,059,564 $ 876,387 $ 157,041 $ 353,291 $ 1,386,719 Page 153 of 501 117 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA BUDGETARY COMPARISON SCHEDULE BUILDING FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Revenues Charges for services Intergovernmental Licenses and permits Investment earnings Total Revenues Expenditures Public safety Capital outlay Total Expenditures (Deficiency) of Revenues Under Expenditures Other Financing Sources Transfers out Issuance of debt Total Other Financing Sources Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) 31,554 $ 31,554 - 1,813 1,813 - 505,000 805,000 871,235 66,235 - - 1,135 1,135 505,000 806,813 905,737 98,924 651,950 652,650 622,816 29,834 19,800 64,800 52,364 12,436 671,750 717,450 675,180 42,270 (166,750) 89,363 230,557 141,194 - - (10,103) (10,103) 19,800 19,800 - (19,800) 19,800 19,800 (10,103) (29,903) (146,950) 109,163 220,454 111,291 655,933 655,933 655,933 - $ 508,983 $ 765,096 $ 876,387 $ 111,291 Page 154 of 501 118 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA BUDGETARY COMPARISON SCHEDULE SPECIAL LAW ENFORCEMENT TRUST FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Revenues Fines and forfeitures Investment earnings Total Revenues Expenditures Public safety 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) 91,516 $ 91,516 - - 131 131 - - 91,647 91,647 - 35,744 19,582 16,162 - 9,441 - 9,441 - 45,185 19,582 25,603 - (45,185) 72,065 117,250 84,976 84,976 84,976 - $ 84,976 $ 39,791 $ 157,041 $ 117,250 Page 155 of 501 119 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA BUDGETARY COMPARISON SCHEDULE CAPITAL IMPROVEMENT FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Revenues Investment earnings Total Revenues Expenditures Transportation Leisure services Capital outlay Total Expenditures (Deficiency) of Revenues Under Expenditures Other Financing Sources Transfers in Transfers out Total Other Financing Sources Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budgeted Amounts Original Final Variance with Final Budget Actual Positive Amounts (Negative) $ 5,200 $ 5,200 $ 347 $ (4,853) 5,200 5,200 347 (4,853) 329,100 84,600 99,763 (15,163) - - 3,600 (3,600) 208,000 197,500 126,458 71,042 537,100 282,100 229,821 52,279 (531,900) (276,900) (229,474) 47,426 434,250 405,044 460,110 55,066 - (196,000) (196,000) - 434,250 209,044 264,110 55,066 (97,650) (67,856) 34,636 102,492 318,655 318,655 318,655 - S 221,005 S 250,799 S 353,291 S 102,492 120 Page 156 of 501 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA BUDGETARY COMPARISON SCHEDULE CAPITAL PROJECTS FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues Investment earnings $ - $ - $ 4,133 $ 4,133 Total Revenues - - 4,133 4,133 Expenditures Public works - 255,000 236,329 18,671 Parks and recreation - 30,000 30,000 - Capital outlay 208,050 6,800,613 4,538,026 2,262,587 Total Expenditures 208,050 7,085,613 4,804,355 2,281,258 (Deficiency) of Revenues Under Expenditures (208,050) (7,085,613) (4,800,222) 2,285,391 Other Financing Sources Transfers in 208,050 404,050 404,050 - Issuance of debt - 6,890,000 6,890,000 - Total Other Financing Sources 208,050 7,294,050 7,294,050 - Net Change in Fund Balance - 208,437 2,493,828 2,285,391 Fund Balance - Beginning 56,266 56,266 56,266 - Fund Balance - Ending $ 56,266 $ 264,703 $ 2,550,094 $ 2,285,391 Page 157 of 501 121 Agenda Item #4. FIDUCIARY FUNDS Page 158 of 501 Agenda Item #4. 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. Page 159 of 501 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA COMBINING STATEMENT OF FIDUCIARY NET POSITION 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 Deferred Inflows of Resources Deferred inflows Total Deferred Inflows of Resouces Net Position Restricted for Pension Benefits SEPTEMBER 30, 2021 Police General Firefighters' Officers' Employees' Pension Pension Pension Trust Fund Trust Fund Trust Fund Total $ 399,680 $ 187,272 $ 150,501 $ 737,453 11,257,174 5,272,250 5,770,918 22,300,342 3,042,922 1,425,140 2,051,761 6,519,823 1,615,856 756,779 900,888 3,273,523 15,915,952 7,454,169 8,723,567 32,093,688 - 12,535 - 12,535 25,754 9,597 30,354 65,705 12,362 5,793 9,665 27,820 18,066 4,091 14,218 36,375 16,371,814 7,673,457 8,928,305 32,973,576 11,482 7,588 24,525 43,595 95,343 44,654 24,939 164,936 106,825 52,242 49,464 208,531 43,272 - - 43,272 43,272 - 43,272 $ 16,221,717 $ 7,621,215 $ 8,878,841 $ 32,721,773 Page 160 of 501 122 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Additions Contributions: State of Florida Employer Employee Total Contributions Investment Earnings Net appreciation in fair value of investments Loss 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 Police General Firefighters' Officers' Employees' Pension Pension Pension Trust Fund Trust Fund Trust Fund Total $ 193,278 $ 91,649 $ - $ 284,927 410,584 100,618 380,003 891,205 104,656 75,796 171,792 352,244 708,518 268,063 551,795 1,528,376 2,925,996 1,373,894 1,603,124 5,903,014 (384,567) (179,827) (239,163) (803,557) 193,186 90,549 115,669 399,404 2,734,615 1,284,616 1,479,630 5,498,861 (37,012) (24,782) (44,312) (106,106) 2,697,603 1,259,834 1,435,318 5,392,755 - - 392 392 3,406,121 1,527,897 1,987,505 6,921,523 216,799 49,095 178,474 444,368 - - 18,820 18,820 26,570 28,748 40,526 95,844 243,369 77,843 237,820 559,032 3,162,752 1,450,054 1,749,685 6,362,491 13,058,965 6,171,161 7,129,156 26,359,282 $ 16,221,717 $ 7,621,215 $ 8,878,841 $ 32,721,773 Page 161 of 501 123 Agenda Item #4. STATISTICAL SECTION Page 162 of 501 Agenda Item #4. 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. 124-128 Revenue Capacity These schedules contain information to help the reader assess the Village's most significant local revenue source, the property tax. 129-132 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. 133-136 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. 137-138 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. 139-141 Sources: Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual Financial Reports for the relevant year. Page 163 of 501 Agenda Item #4. 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IC 01 r- O M O m 7 M 10 M M r- N 1p r --i N Vl W V D1 N Q\ l0 M l O fry - GC n V In In vi N In l0 oo x r 01 In v oo In v C� In In In 10 V O r- N_ CT 0A ,-. r- O N 171 O O O v1 N r n 00 \:J 't O r cV 1p O n 01 V V 01 Ol In 1p vi O N MIn �n N 01 W O �n -� M 1p r- O N N 01 7 7 lip GO r r- CC In t V �n r- 00 00 �. 7 l0 O 0\ M N In ' r- O 7 O M 10 CA In0 0 O M -� CT a1 h h 0 7 M CA M W lD M 01 N 01 In M l0 M r- x 10 N Q1 00 Cl l0 N M lC r- 1p 0` r- V7 VO �c V l0 N r N x — In lC M 01 N "0 O C` V1 V -zt M N lG 01 n'Y M CT 7 V1 n .--i N 7 In r` ) F!3 EO GO; 69 O N •--i O O O N ' 00 CD 00 V1 M Cl M V7 N N �n -� M 1p l0 01 N l0 M N CT O N 01 01 V7 AO M U1 In In. O 01 O oo C` OO In �n CT In C` 10 00 In N 00 01 0 r` N "I-�n N to � m t 01 'r In In .-. cS, v r` yj s9 s 6v M V] M V1 M OC 01 In 10 O 01 'n N --i M �n 41 N •--i � O\ U.J N � M M l� �n � \C O N � 01 V1 N CF l0 In Oc M, N C, In IC r\ n 00 C1 N .-- lD N N V C\. l0 N "t 10 V? 69 69 69 Efi l0 r- 10 r- 00 In 01 N rn I0 n m O m l0 O �_ In dl 01 7 c» 00 01 00 In_M N O --i O Q\ LD In n _ V1 7 -- O lG O, 7 n n lD .-. LD InN 00 V v1 In O In O N 10 N r- N N 7 In 171 7 V ^� ~ N K 'n A Ef3 69 A EA d L y OL.i z p 7 d hA dyU [. .. J Q on d IJ 75 c y pp3 y CFE U �' A CA C.i A ai ca chi 'i 'a 0 .R CJ oA a E oUC70..F-lC)u F � F F W PL,� FC�i OaU � FCC FCC z�� F N Page 165 of 501 Agenda 9 m N O N 0 O N CCi O N O N N O N V O M M IC a l� 00 41 N N a V1 00 69 M h N Ol N z 10 17, 00 M O O1 l- O= 10a" as M O O h O1 � � l0 N 64 .0 V O O V O Q` O \O V1 V M O 10 Q\ m N O1 M N 7 O\ .--� Gn N V1 O1 N O l� M CO N N O h N Q V'1 M 1 69 a1 M ,r V to 7 '-- 64 m U( O V N M U' GO M N l� '-- 64 rA Vj M Ol C1 �D M C\ O1 N N M 't '--' 69 a y O\ O OMO oc CMi� V M V O m M Oc M M O M V V1 Vl Cf 1z, Vi Io oc O In V1 C O O aoi N �O 01 n N M N N W O V7 n M xi l� l N �O V1 N N Vl In In Oc M l� Vi 00 — JO 10, 01 a, m JD _C 69 C lO O O N O N N 00 0 00 o ri cn O d` O 'n v1 x a, o rn C, ca o ONC rq � x o0 6� 00 00 O1 O O OC N V G`. N V1 6� IC C\ M V1 OC M V) 00 M V O M N O V) 69 N'. N V l� 01 vJ rJ Ol N N M �A ' O, 00 N NIn O 01 d`. 7 �Xi N •�� x V1 '0O V O O JO p V ID O � � L Y w C R y 'O C. R � y � y CDF N Page 166 of 501 Agenda Item #4. N O N O O N A Z C^ a 0 N 00 N o A O N H O W Q N O cr FUG a Pa GL A OO M O N N 0 N l� rn N N IO �O 00 O CA M C1 V IO N M E� 4H f3 EA -Mo7It c N 00 O �D O lO OC �n M O O O 00 01 N O O1 Oc O1 1-, N 7 V1 N OC M O` 69 I 6511 69 I f3 O1 ' 69 I 6/-.II EA I A x OO N c I ,--' II O M Oc N rA C, ^ OI NII I M N O 'n CC O 'r M N '/i O CC N M M 59 I us II E11 I bn N - N a v v o o oo v-i v-i o �o y3 69 6/-i 69 O O 00 O — N 7 69 59 69 69 11O N ' W O o 1.0 O rn N o 64 I b411 EH I f3 N O h N M ^y M; 64 I EH II b4 I fH M ' V' C> 7 t` O N V 69 b9 b4 69 r .may 7 GO 00 C, Cli M O M b4 I b9ll ff3 I EH "O b 7 C Uy w c � L Page 167 of 501 Agenda Item #4. N 0 O N O N G` O N A z w O N � � z F z a ✓' W w � W � C Q F U .y N � w C7 O � z f„ ON V N_ O N 7 p In N l- O 1) C N Ol D I 7 "O N M l- !` N , oo 7 c M 7� t o M V �O f. 01 O xC\ N O �O .-- 01 v1 N -� O �c 7 �O l� o, \O 7 h N 1-1 M a, pp vi=o;ff;- ci rr;v r m o�oo .� C, C, v � 00�`r cv ri 00 7 0 �--i M r- �--� �--i N N 00 �O "n ^i O o0 ,--i N a, M 01 o V m h '�O -� l- '.p M In N 01 tv O N In M O o0 N N M M N o0 1. c O x --i O o0 h In M In D -� 1c o0 00 M \o r- O O O, cl 00 \O Vf 7 0 OC h V, O In Ic-� �D InC--r- C, d, O l- a h O^ rt oo N O 0G In OC a O v1 O O V1 -- 64 � EA M N O r- O N r- N 4, \O M O 01 l� Vf O O, O 0 M Dv M V� \c .--i � h' t� 7 7 n o o IO 7 C1i 17 l0 O "c 1 "1 � In �O x I N l.O N C1 �n Vi o0 Cl r- 7 Vl O O O h M 01 l- V' lc V1 M M l� r- M In N M O Cl Vt O` N O M N N �O -t V1 M cJ to Ic l� T N In M o0 N ^- O o0 V N �c �c -- N l� � vi V O 'Ic N V N l- N of V1 - O M 7 h N N N N ;7, 7 � N 69 H rr- "n N a, O 1n M n In M o 0, kn H M O o` ^i N V In Q, O M M O N V'+ N Vl 00 N O V N M M N l� O --i o0 N �D �c �c l0 M ,c M o\ O l- M N o0 O Q\ N O o0 h O1 "n O l� 'S In Gl N O CO M V� N h N c Vl Vf -1 _r O` N c r vh N l� 69 6R M L7 N O Gl V O �n l� N MI'l V cIn rc� D �N� r In c'c c; --i M Vl �c N V^ M T C Ic O O M V NIn ": V ''D M "Y a- M l� M 0 0 N In In In O_ Cl N N l Q, M al 41 l �c O o -t In In a 00o Now Mo 000c M N �o�oo M tr�� O 00 V'1 O oo�N rn o0 W w 4 Q; Q; 7 x r o0 00 In Zt M 1- o, N M V'; N c-- Q, GO 7 N In M Ic 17, M f` In c M N Vl O M 00 N N V1 f1 GO 7 00 O O M M [\ M In In l� �c Q1 M •--i V Vl N 01 V O ^i N M --i ^i M OG In DD o0 M o1 lo Co 14C oc V o0 in 41 00 N o0 c, In C,�n �-- 01 l� OC .c Q` M V1 O O V o0 N M oc In 00 O U 41 Vl C, c M .-. 01 m Q, 41 V O N O O i •�- o N �D V1 O �C 00 O O ^ h �c M Q, M M Uf l� ^� In M M M M M �--i O\ M 00 O 00 O r r O Uf N O --i M --i O N N o0 1� 1p oc N o1 ^ O l� �n r- l� C 0 0 O 7 O In O O �U M N't D1 �'F Uf l� M 4` V1 M ^ � N O r ''n N , O - ,--i eY lV I- N .--� M M V1 N N It M V1 G M N h M N M 01 Ic l N o0 M N c, t t` r- N � a1 M � '3 7 o c- fn v� �c L l m - Q1 t` �-- Vl G �D N O � In 1= 'c vl 00 O In � M oo M N In N r c1 'n O In Q\ 7 O N r. t o0 n l- M O, V'1 •--i 7 O lo O N In M V Q` r V') M Y M oc N M y V O 3 : d � •�" ^C iC V y '� � 7 N y is �' � C f11 y W C L p 00 C, q4 3n � tILI wU c7aa� w�rx� UC] O O �4F Fo WU � W �hF � z Az x N Page 168 of 501 Agenda Item #4. ice. Q � T y a w O ¢�y a 1r-0 N 0O1 1.0 M_ 10 01 01 cn M �O N al 7 01 l� r- 00 l� h � In 00 N 0 00 10 N 00 l� N M M 00 k fl. l0 O, 00 7 l0 01 N ^ O1 M al r7 N b9 131 101 u7 u7 Ic Irl I'D In N --i N ID Cl 7 M 00 In O In l� v� M O M ^ cC � P3 1O l�Ic M a1 O O ^ ^ N b4 _ M--� l� N N M 01 - IO '"d l- --� N m N �n In a, 7 M .,., U y 01 c M M O M 7 cy s4 -O l— 00 O\ N 0� y 'd O O O O, N O G1 7 00 M N N O O N c rz O, M M O O O O M M x 00 7 n o n oo a a 17 O, ay o 00 00 In 0O10 1:71 o n o N 00_ 00 �r �c O N O 01 D\ O, v7 � Ql V7 ,— 00 N l— W J H a N N N N N N N N N N A O" y M In N Ol M 01 ^ 01 to W In In O lG lO I0 O 7 01 0 X ;d 17 7 7 K, ll oA M o0 01 y s4 p cJ G`• M 1n Vl O N 7 In O 1G Oc O O 10 N 'd O N ^ N n 01 r y ti M 01 N W �D V'1 7 00 01 O LL'i .� N O N In yr 7 O, V 7, N 0 cC cC 0�1 0M1 O N V V In 1O a m In 0v M o N m 7 l- 01 ^ N l� M ^ M --i N o0 01 10 T U V� N G1 �D G1 O 7 1G O 01 � U U M CID -�O1 O1 00 'IO 1� 01 01 U �i R b tC V7 CD N 01 N 7 7 n ^ .yn 1L` O r 7 O1 x Q1 O 01 r- 10 r O, C, O O 7 01 T y yC. CC � 01 � y 7 U Q � O � W y £7 F N M 7 11 1D h m 01 O c3 O O O C O O O O O O y N N N N N N N N N N � a y � y U N Page 169 of 501 Agenda Item #4. on W r� T O U 4. knNooNq,o��� N�ocoo�oc M O\ O 41 Oc WO O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O V V V) O\ N 'T G O O O O O O O O O Y O N N r v) 1- 01 C\ O\ ,^-i 00 Ln oC I-- In al al O r .lCy ,Vly M �D v'; M N N N N N N O O O O O O O O O O c�3 N y lC lG N oo M d\ O O� M z+" O O O O 01 Ol oc CT oc oo �D lc lc Vr kr) v) v) V'1 kn v) y O 00 oc � o � h OC G1 t` � � \O p lr� V? v? o r-� Lr� 7 O � � � r- 14:1 Ic � � 0 0 0 0 0 0 0 0 0 0 G G O O O O O o 0 0 oo r— NV' O G O O O O O O O O O Z)c Oc 00 00 Go Oc Oc w w 00 O O O O O O N N N al al �O lC v) G1 01 Ol d, CT N N 1-: G N N N N N 1-o 1-1� V1 V1 V. 1O �O �c �c IC \O �lO O O O O O O O O O O N N N N N N N N N N Page 170 of 501 Agenda Item #4. �y o � 0 0 0 0 0 l V-, N O O O 000 C, M y O y O kr`t O 00 -- tr U �cl O l M 0" GO OC O 00 l N O 0? �� M M M Mkr X .M-i ff3 b4 0 0 0 0 0 0 0 0 01 00 l� l— l-- \lC — N M t V-) 1�0 � Oo d1 O kr N _ O 0o Oo 00 O Page 171 of 501 Agenda Item #4. N� `..� �00000000a O n. F." O _ r N N O 't 0Oo cc Y n In ° 1 M 00 � ^y � � M, GO 00 l� ti M M C5 O O U �+ o 0 0 0 0 0 0 o y N M M M M CAC T 01 rya �' O r; 1 0o co O O, 00 y I y ,j Y I� In ,G 't � v 00 Q, AO O� to 00 Z 00 M -tm Cl M V1 p U O N M l— N "6 O � zT co U ° y o c Cl. C> c 6N1 N C0 0 00 � cNv r U l� l� "O t -7t - M N � Vr v N o "O 4 l- cn O c -t -t Q1 00 4 ° a u >11 Y u x '� 7, ) y N_ �_ in � 00 01 O U cC O _M O O O O O O O O O ^ ^ o Page 172 of 501 Agenda Item #4. N O z w N�t OD r- M�t OD V N V'� M N .--i O1 OD Vr 1- 69 c o 0 0 0 0 0 0 0 0 N N N N --� --� --� •--� O •--� x — l-- a1 �c O a, O l— Ln V'1 M O1 M �-C M M 11C M Vr OO OO M In OO M d1 c+l — O Vl — O �C l— 01 r- M Oc OO l� M ul M O — N OO OO lC oc M ,--� r-: x OO 00 l-- l-- 59 OO O M 00 O "t 7 OO r--O N �O OO 00 h in oo "Zt Ll r- 01 M Vl V7 N 't N � C, -� V-) N O, t OD O ,-ti N OO V) N 0, V7 N OO Vr1 — r-- Vl Vi V7 M M M N 6S N O N M V7 01 M� --� O l Oc \O M x O l N L a f93 O - v11 O M O� \C O l- t� �C M N N M O Oo 01 O �C OO O; Q 00 l N 4 N M zt y7 I-C r-- OD C, O O O O O O O O O O O N N N N N N N N N N Page 173 of 501 Agenda Item #4. V) 7J J V w N 't 0e �c l— M �t 00 110 cV (f} O O O O O O O O O O Cl O O, r— 1.0 in cM CIO 00 t— ( , "o O o0 0 Lr) I-G M M V( M \O 09 W M cc M O, AO l� M 00 c0 N 00 00 �,c Oc M � M V> l� O 00 cc c0 r- r- � V) IZT � O 69 00 o �c o 00 o t Ln Vl M K1 lc M M Vp 09 OG M M W) M 00 M O, M Vp Ln l— 6, l-- M 00 00 l� M M O .--i N 00 00 �lc c0 M M V> l� O Go cC oo l l `O in 4 4 O ss N ' N "O 0, t �c '--� ,n ItIt L N c0 M't M O 4 N (4 O, M O --� M M 00 N l� — �c --i G, M 0, O, N l— l z O, M O N O N r- l-- � l 00 00 G, Els N C, V') a, � r--O I N M O O O O O O O O O O N N N N N N N N N N N Page 174 of 501 Agenda Item #4 N a Sl a a b y C O -oft h 0 0 0 0 0 O 0 0 0 0 0 O O 0 O O 0 0 0 c � O O O O N � R � � N � O cue G W N O � C O a J a on Page 175 of 501 Agenda Item #4. by NIC ry� Y Y ~ bO C7 y U Y U O >C �r cC OO O OC OO � O bU c6 • � Y � � � � `� � it 'b O p O ct Cam,.,kn U �..i M tb Vx O N U tal U U Gp LZ U VI V~ O U E �� bq ¢ cd by A Y cd bQ Gr U N O '0 N U 9 O 2ct cC Y Y D y N O ct O V� N ro 3 i) o i _'At° � ' o a M as U P1 w° ca8 0poPy Page 176 of 501 Agenda Item #4. ���� o000000000 N O M N l-- N \O ¢' Ol r-- "0 V.) V) M M M \c ..d O w M 4� o � t tc a, a1 a, a1 a1 a1 a � � U �J U N U OCC V') M O o0 00 N 0n O Q ym dl Ol Ol F- N-,zt C U a OU u kn kn � 00 00 cr o o kn o oo O N \,o oca ct O vn o0 MV) -� O N �O i O O O "C O a1 "C�,c N M C \,O p ~ M \O 00 M M M M M M 't't 7t l/'1 U M C/I O U v N uo U OON C13 kn O 4� U p 00 0o Oc a cz U 03 m cz a .� A 'd Q cad N M V)11C r- 00 O', O -- U o 0 0 0 0 0 0 0 0 0 w �D w Page 177 of 501 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA PRINCIPAL EMPLOYERS - PALM BEACH COUNTY CURRENT YEAR AND NINE YEARS AGO 2021 2012 Percentage of Percentage of Total County Total County Employer (seivice providing) Employees Rank Employment Employees Rank Employment Palm Beach County School District 22,600 1 N/A 20,755 1 N/A Tenet Coastal Division Palm Beach County 6,505 2 N/A 6,100 3 N/A Palm Beach County Board of County Commissioners 5,686 3 N/A 11,626 2 N/A NextEra Energy, Inc. (Hdgtts) / Florida Power & Light 5,119 4 N/A 3,635 4 N/A Florida Atlantic University 3,133 5 N/A 2,776 5 N/A Boca Raton Regional Hospital 3,052 6 N/A 2,250 8 Veterans Health Administration 3,000 7 N/A 2,207 9 N/A Hospital Corporation of America (HCA) 2,806 * 8 N/A 2,714 6 N/A The Breakers 2,300 9 1,800 10 Bethesda Hospital East/West 2,282 * 10 N/A 2,391 7 56,483 N/A 56,254 N/A Source: Business Development Board of Palm Beach County Employment information for the Town is not available N/A = not available * Updated figures unavailable at date of publication. Page 178 of 501 138 Agenda Item #4. Oc 01 O M O N l� N M 041 O �O N O N D M 00 N M 001 O �O N O � M GO •--i � � 14 y.��� � o C7 H cc H F Page 179 of 501 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Governmental Activities General government Registered voters 4,676 4,854 4,702 4,634 4,813 4,017 4,951 5,056 5,204 4,971 Public safety: No. of full-time certified police officers 11 * 18 20 19 18 19 19 19 19 20 No. of calls received 3,272 3,571 3,548 3,853 3,109 3,442 3,443 3,614 3,571 2,375 No. of arrests 129 136 168 174 94 108 69 61 46 40 No. of parking violations 149 328 120 207 61 39 20 48 48 34 No. of incident numbers issued 622 691 725 552 345 312 254 259 t 81 280 Fire department: No. of full-time certified firefighters 21 21 18 22 22 22 22 21 21 21 No. of emergency responses 1,155 1,372 1,197 1,291 1,409 1,296 1,227 1,168 1,226 1,186 No. of transports 695 675 693 1,006 817 722 724 721 1,017 684 No. of fires extinguished/alarms 460 697 504 285 254 309 267 206 323 263 No. of inspections 495 539 713 499 654 742 608 767 405 558 Building, zoning: No. of building permits issued 883 914 929 1,034 1,583 1,755 1,356 1,226 1,198 1,412 No. of building inspections conducted 1,931 2,176 2,201 1,705 2,472 3,017 2,634 2,649 2,611 2,429 Leisure services: No. of Spring Classes 10 10 8 8 12 10 10 10 7 4 No. of Summer Classes 4 4 4 4 4 4 4 4 - 1 No. of Movies 3 3 4 3 3 3 3 2 - - Business -type Activities Water: No. of customers 4,996 5,037 5,039 5,038 5,055 5,042 5,087 5,084 5,070 5,070 Average daily consumption 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 2.573 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. Page 180 of 501 140 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS Function/Program 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 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 11 10 11 10 12 10 12 11 11 12 Fire: No. of stations 1 1 1 1 1 1 1 1 2 1 No. of ambulances 3 3 3 2 2 2 2 2 2 2 No. of pumpers 3 3 3 3 3 2 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 6* 6 6 7 7 7 7 7 No. of park acreage 54 54 62 * 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 73 73 73 77 77 77 77 72 74 No. of fire hydrants 430 433 409 430 456 435 435 435 579 580 3,250 2,750 2,750 2,750 2,750 2,750 2,750 2,750 2,750 2,750 Storage capacity (thousands of gallons) Sources: Various Village departments * The green area has been identified as a park (Linear/Green Mile park) Page 181 of 501 141 Agenda Item #4. REPORTING SECTION Page 182 of 501 Item #4. A � AULDIN & ENHINS CPAs & ADVISORS INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor, Village Council and Village Manager Village of Tequesta, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business - type activities, each major fund, and the aggregate remaining fund inforination of the Village of Tequesta, Florida (the "Village"), as of and for the year ended September 30, 2021, and the related notes to the financial statements, which collectively comprise the City's basic financial statements and have issued our report thereon dated March 16, 2022. 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 opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Village's internal control. Accordingly, we do not express an opinion on the effectiveness of the Village's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 1401 MANATEE AVENUE WEST, SUITE 1200 • BRADENTON, FLORIDA 34205 • 941-747-4483 • 855-891-0070 • FAX 941-747-6035 • www.mjcpa.com Members of The American Institute of Certified Public Accountants Page 183 Of 50 Agenda Item #4. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Village's financial statements are free of 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 results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Bradenton, Florida March 16, 2022 qa,4a� , x0ee- Page 184 of 501 143 Item #4. A � AULDIN & ENHINS CPAs & ADVISORS INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the Honorable Mayor, Village Council and Village Manager Village of Tequesta, Florida Report on Compliance for Each Major Federal Program We have audited the Village of Tequesta, Florida's (the "Village") compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Village's major federal program for the year ended September 30, 2021. The Village's major federal program is identified in the summary of auditor's results section of the accompanying Schedule of Findings and Questioned Costs. Management's Responsibility Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal program. Auditor's Responsibility Our responsibility is to express an opinion on compliance for the Village's major federal program based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance 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 the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Village's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for the major federal program. However, our audit does not provide a legal determination of the Village's compliance. Opinion on Each Major Federal Program In our opinion, the Village complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect its major federal program for the year ended September 30, 2021. 1401 MANATEE AVENUE WEST, SUITE 1200 • BRADENTON, FLORIDA 34205 • 941-747-4483 • 855-891-0070 • FAX 941-747-6035 • www.mjcpa.com Members of The American Institute of Certified Public Accountants Page 185 Of 50 Agenda Item #4. Report on Internal Control Over Compliance Management of the Village, is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Village's internal control over compliance with the types of requirements that could have a direct and material effect the major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance the major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Village's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Bradenton, Florida March 16, 2022 Page 186 of 501 145 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Pass Federal Through Pass Through CFDA Entity Program Title Organization Number Number Expenditures Federal Awards U.S. Department of Justice Coronavirus Emergency Supplemental Funding Florida Department of Law Enforcement 16.034 2021-CESF-PALM-I-C9-033 48,824.26 Edward Byrne Memorial Justice Assistance Grant Program N/A 16.738 1,138.50 Equitable Sharing Program N/A 16.922 - Total U.S. Department of Justice 49,962.76 U.S. Department of Treasury Equitable Sharing Program N/A 21.016 19,582.25 Palm Beach County Board of County Coronavirus Relief Fund (CARES Act) Comm. 21.019 132,938.94 Coronavirus State and Local Fiscal Recovery Funds (ARPA) Florida Division of Emergency Mgmt 21.027 Y5306 1,537,120.00 Total U.S. Department of Treasury 1,689,641.19 TOTAL FEDERAL FINANCIAL ASSISTANCE 1,739,603.95 State Financial Assistance Florida Dent. of Environmental Protection Statewide Surface Water Restoration and Wastewater Projects N/A 37.039 NS080 $ 15,615 $ 15,615 Florida Dept. of Health County EMS Grant Program Palm Beach County BOCC 64.005 N/A $ 13,605 $ 13,605 TOTAL STATE FINANCIAL FINANCIAL ASSISTANCE $ 29,220 Page 187 of 501 146 Agenda Item #4. VILLAGE OF TEQUESTA, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND SATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Note 1 - Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the Federal award activity of the Village of Tequesta, Florida (the Village) under programs of the Federal government for the fiscal year ended September 30, 2021. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Village. Note 2 - Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Note 3 - Contingency The grant revenue amounts received are subject to audit and adjustment. If any expenditures are disallowed by a grantor agency as a result of such an audit, any claim for reimbursement to the grantor agencies would become a liability of the Village. In the opinion of management, all grant expenditures are in compliance with the terms of the grant agreements and applicable federal and state laws and regulations. Page 188 of 501 147 Agenda Item #4. VILLAGE OF TEQEUSTA, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 SECTION I SUMMARY OF AUDIT RESULTS Financial Statements Type of auditor's report issued Internal control over financial reporting: Material weaknesses identified? Significant deficiencies identified not considered to be material weaknesses? Noncompliance material to financial statements noted? Federal Programs Internal control over major federal programs: Material weaknesses identified? Significant deficiencies identified not considered to be material weaknesses? Type of auditor's report issued on compliance for major federal programs? Any audit findings disclosed that are required to Be reported in accordance with Uniform Guidance? CFDA Number 21.027 Dollar threshold used to distinguish between Type A and Type B federal programs: Auditee qualified as low -risk auditee? Unmodified yes X no yes X none reported yes X no yes X no yes X none reported Unmodified yes X no Name of Federal Program or Cluster U.S. Department of the Treasury - Coronavirus Relief Fund $750,000 yes X no State Financial Assistance Proiects There was not an audit of major state financial assistance projects as of September 30, 2021 due to the total amount expended being less than $750,000. None reported. SECTION II FINANCIAL STATEMENT FINDINGS AND RESPONSES 148 Page 189 of 501 Agenda Item #4. VILLAGE OF TEQEUSTA, FLORIDA None noted. Not applicable. SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 SECTION III FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS SECTION IV STATE PROJECTS FINDINGS AND QUESTIONED COSTS Page 190 of 501 149 Agenda Item #4. VILLAGE OF TEQEUSTA, FLORIDA None noted. SCHEDULE OF FINDINGS AND RESPONSES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 STATUS OF PRIOR YEAR AUDIT FINDINGS Page 191 of 501 150 A ends Item #4. AULDIN & ENKINS CPAs & ADVISORS INDEPENDENT AUDITOR'S MANAGEMENT LETTER 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, 2021, and have issued our report thereon dated March 16, 2022. Auditor's 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; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance); and Chapter 10.550, Rules of the Auditor General. Other Reporting Requirements We have issued our Independent Auditor's Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; Independent Auditor's Report on Compliance for Each Major Federal Program and Report on Internal Control over Compliance; Schedule of Findings and Questioned Costs; and Independent Accountant's 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 and schedule, which are dated March 16, 2022, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., 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. Recommendation number MLC 2019-002 was addressed and corrected by the Village during 2021. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. The Village was incorporated in 1957 by laws of Florida 57-1915. There are no component units related to the Village. 1401 MANATEE AVENUE WEST, SUITE 1200 • BRADENTON, FLORIDA 34205 • 941-747-4483 • 855-891-0070 • FAX 941-747-6035 • xA-ww.mjcpa.com Members of The American Institute of Certified Public Accountants Page 192 Of 50 Agenda Item #4. Financial Condition and Management Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, requires 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 to identify 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 the review of financial information provided by same. 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 not have any such recommendations. 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, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, federal and other granting agencies, the Mayor and Members of the Village Council, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. Bradenton, Florida March 16, 2022 qaac&t, , 0� �e_ Page 193 of 501 152 Agenda Item #4. AULDIN & ENKINSow CPAs & ADVISORS INDEPENDENT ACCOUNTANT'S REPORT To the Honorable Mayor, Village Council and Village Manager Village of Tequesta, Florida We have examined the Village of Tequesta, Florida's (the "Village") compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2021. Management is responsible for the Village's compliance with those 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 and, accordingly, included examining, on a test basis, evidence about the Village's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides 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 the aforementioned requirements for the year ended September 30, 2021. This report is intended solely for the information and use of the Village and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. ladc6t, , x0ee Bradenton, Florida March 16, 2022 1401 MANATEE AVENUE WEST, SUITE 1200 • BRADENTON, FLORIDA 34205 • 941-747-4483 • 855-891-0070 • FAX 941-747-6035 • sstivw.mjcpa.com Members of The American Institute of Certified Public Accountants Page 194 Of 50 Agenda Item #4. T 70 L. 0 u C 4- 0 1 0) LL OHO Z N 0 ~ H H W z = W F- N - W 0 a Q a c oc 0 J LL N W cr LLI LL 0 W J J_ W H Agenda Item M bA Q Z v L a, C: LL O U Lj Q L I _0 W M =3 C: N O C •� O G O _U E a F= 0 O O U � N N O � cr a) O oC c0') c0') c0') a Ll N O H N OTC v N N Q � O of ti CL 3 Q �--+ W a=i o E a— Ey O U O Ln Ln N ~ Cf c0') do Page 19 0 Agenda Item V J J 06 N D c U O +' ate-+ N O U N �' (/ X W W }' O (U +-+ p — c a--+ U 4-j ELn — U Q E C a o 4A o � a) Q O U +-� � M Qj N on a+ 4-1 � a) E o (1) !, u 4 J O 00 _E X Q �, Q O LL (rj O N E C: can }, U L c6 u N N O L.L O M N � w O O N U > L V) _ � O N `0 Q W c % U C) L a-j E i > OQj + i p O O N 0 a--' O L N cn N U L p O 4-j LU U � O i QL �_ > O Q cB — _0 p L Q 4-J N i M d 4-1 a) E L O cn O Q N bn ) O N � U E- Q v V f6 C: if O N E L if O f.D L N O p C6 U 4J 0 c6 Q CD Page 1 � E Agenda Item 4 0 N M �U O 4- hA O O O Q U (3) ra Q �U a-+ M L C: M iz U N M U C: C: O 4-J M U N X �C: W M i 0 O +1 E E L U a O � N O }' ca U � U M .N fB Q co O .N U N a-J i N v bn O Co O (B O LL a-+ i f6 Q 4-J N c DC i +j O M cn N I..L � o2S N Q 0 O V Ln V a-+ a-+ f6 Ln M +j N Q O a-1 M E L- O c U M Q C6 U N N N Of O M E L- 0 Ln v 76 ca iz 0 w H � o O ev L i OTC v Q a. 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