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
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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
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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
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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.
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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
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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.
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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
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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
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Agenda Item #4.
FINANCIAL SECTION
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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.
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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
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3
Agenda Item #4.
MANAGEMENT'S DISCUSSION AND ANALYSIS
(MD&A)
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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
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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
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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.
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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.
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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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Page 165 of 501
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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.
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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
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