HomeMy WebLinkAboutDocumentation_Regular_Tab 03_5/11/2023Agenda Item #3.
Regular Council
STAFF MEMO
Meeting: Regular Council - May 11 2023
Staff Contact: Jeffery Snyder
Department: Finance
Accept the Annual Comprehensive Financial Report (ACFR) Year Ended September 30, 2022
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 40 consecutive
years.
The state requires that the ACFR be audited by an independent CPA Firm annually. This is the second
year that our current auditor has performed the audit of the Village. Our auditor's Mauldin and Jenkins
will have brief presentation of results Village's year audit and will be available 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.
PROJECT NAME: BUDGET: N/A ENCUMBERED: N/A
Proposed: Projected Remaining:
N/A N/A
Staff recommends accepting the FY 2022 ACFR.
FITOMT, TR.W% E
2022 Financial Statements - Village of Teguesta
2022 Board Presentation
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Agenda Item #3.
Village of Tequesta, Florida
Annual Comprehensive Financial Report
For Fiscal Year Ended
September 30, 2022
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Agenda Item #3.
VILLAGE OF TEQUESTA, FLORIDA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
Prepared By
Finance Department
The Village of Tequesta, Florida
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Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA
TABLE OF CONTENTS
1. INTRODUCTORY SECTION
Letter of Transmittal i
Certificate of Achievement for Excellence in Financial Reporting vi
Organization Chart vii
List of Principal Officials viii
11. FINANCIAL SECTION
INDEPENDENT AUDITORS'REPORT
MANAGEMENT'S DISCUSSION AND ANALYSIS (Required Supplementary Information)
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
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule — General Fund
98
Note to the Budgetary Comparison Schedule
99
Firefighters' Pension Trust Fund
Schedule of Changes in the Village's Net Pension Liability and Related Ratios
100
Schedule of Village Contributions
101
Schedule of Investment Returns
102
Police Officers' Pension Trust Fund
Schedule of Changes in the Village's Net Pension Asset and Related Ratios
103
Schedule of Village Contributions
104
Schedule of Investment Returns
105
General Employees' Pension Trust Fund
Schedule of Changes in the Village's Net Pension Liability (Asset) and Related Ratios
106
Schedule of Village Contributions
107
Schedule of Investment Returns
108
Schedule of Changes in Total OPEB Liability and Related Ratios
109
Schedule of Village's Proportionate Share of the Net Pension Liability —
Florida Retirement System Pension
110
Schedule of the Village's Proportionate Share of the Net Pension Liability —
Retiree Health Insurance Subsidiary Program
III
Schedule of the Village's Contributions — Florida Retirement System Pension Plan
112
Schedule of the Village's Contributions — Retiree Health Insurance Subsidy Program
113
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Agenda Item #3.
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
114
Combining Statement of Revenues, Expenditures and Changes in Fund Balances —
Nonmajor Governmental Funds
115
Budgetary Comparison Schedule — Building Fund
116
Budgetary Comparison Schedule — Special Law Enforcement Trust Fund
117
Budgetary Comparison Schedule — Capital Improvement Fund
118
Budgetary Comparison Schedule — Capital Projects Fund
119
Combining Statement of Fiduciary Net Position
120
Combining Statement of Changes in Fiduciary Net Position
121
111. STATISTICAL SECTION
Net Position by Component
122
Changes in Net Position
123
Fund Balances, Governmental Funds
125
Changes in Fund Balances, Governmental Funds
126
Assessed and Estimated Actual Value of Taxable Property
127
Property Tax Rates — All Direct and Overlapping Governments
128
Principal Property Taxpayers
129
Property Tax Levies and Collections
130
Ratios of Outstanding Debt by Type
131
Ratio of Net Outstanding Debt to Assessed Value and Net Bonded Debt
Per Capita
132
Computation of Legal Debt Margin
133
Direct and Overlapping Governmental Activities Debt
134
Demographic and Economic Statistics
135
Principal Employers — Palm Beach County
136
Full -time -Equivalent Village Government Employees by Function/Program
137
Operating Indicators by Function/Program
138
Capital Asset Statistics by Function/Program
139
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
140
Independent Auditor's Report on Compliance for each Major Federal Program and
on Internal Control over Compliance
142
Schedule of Expenditures of Federal Awards
145
Notes to the Schedule of Expenditures of Federal Awards
146
Schedule of Findings, Questioned Costs and Responses
147
Management Letter in Accordance with the Rules of the Auditor General of the
State of Florida
150
Independent Accountants' Report On Compliance Pursuant To Section 218.415
Florida Statutes
152
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Agenda Item #3.
INTRODUCTORY SECTION
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Agenda Item #3.
Village
345 Tequesta Drive
Tequesta, FL 33469
March 15, 2023
of Tecluesta
To the Honorable Mayor,
Members of the Village Council
And Citizens of the Village of Tequesta, Florida
5 61- 7 68-0 700
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, 2022.
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, 2022. 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 #3.
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;
planning; 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 Village is responsible for establishing and maintaining an internal control structure
designed to ensure that the assets of the Village 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 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
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Agenda Item #3.
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.
SingleAudit
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, 2022 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. Department Directors may transfer resources within a department with the
approval of the Village Manager. Transfers between funds or exceeding the amounts appropriated in any
fund require budget amendments be approved by the Village Council. The legal level of budgetary
control is therefore at the fund level.
Local Economy
The Village, located in the north end of 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.
The unemployment rate in the United States was 3.5% as of September 2022 and 4.8% just one year
earlier. This compares to the Florida's unemployment rate was 2.5% as of September 2022 and 3.9%
just one year earlier. Palm Beach County's unemployment rate was 2.6% as of September 2022 and 3.9%
just one year earlier. The future continues to look good for the Village of Tequesta.
The entire country is feeling the effects of significant and prolonged inflation. The CPI increased 8.2%
from September 2021 to 2022 and the corresponding increase from September 2020 to 2021 was 5.4%
which is much higher than the feds goal of keeping inflation around 2%. This is impacting the
purchasing power of the Village and our residents.
The housing market is slowing as the fed works to reduce the high inflation levels. The resulted in
federal funds rates increasing to 4.50% to 4.75% (highest since September 18, 2017) and pushed
mortgage rates much higher 6% to 7%. Housing starts are decreasing (45% in Florida for January 2023
according to the Florida Realtors) in 2023 due to the higher mortgage rates. Tequesta continues to see
rising property values. Per the Palm Beach County Property Appraiser's Office, gross taxable value for
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Agenda Item #3.
calculating ad valorem proceeds increased from $1.221 billion during calendar year 2021 to $1.293
billion during calendar year 2022 revenues. Construction projects in the Village are anticipated to add
approximately 12% to the gross taxable value.
Strategic Plan
The Village of Tequesta Village Council continue to utilize strategic planning to guide the future of the
village. The Strategic plan identifies the four main goals along with strategic objectives and actions to
support overall goals:
• Maintain level of services at the intended level of Operational Excellence.
• Update infrastructure.
• Maintain and enhance the distinctive character and culture of the Village.
• Maintain and strengthen the financial stability of the Village.
The Village Council adopted the following vision for our future:
We will preserve and enhance the unique character, community spirit, small town values, and
superior quality of life for all who reside, visit, and work in the Village of Tequesta.
The Village Council's adopted mission:
The Village of Tequesta's mission is to protect the health, safety, and well-being of the community,
provide exception, fiscally sound, and efficient customer service, uphold the public interest and
advance the community vision.
The Village Council added two new values as part of this year's strategic planning meeting:
0 Excellence.
• Ethics & Transparency.
• Quality of Life.
• Employees.
• Communication — new.
• Compassion — new.
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.
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IV
Agenda Item #3.
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.
• Asking the Village's citizens if they support issuing General Obligation bonds as a long-term
funding strategy for Parks and Green Spaces.
• Strengthen our relationships with local businesses to recruit and retain businesses in the Village.
• Developing a sustainable business plan for the new Recreation Center.
• Continue and enhance the annual street and sidewalk 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.
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, 2021. The Village has received this prestigious award for forty for
consecutive years. 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.
We would like to thank the staff of the Finance Department for their efforts in preparing this report and
all Village departments for their cooperation and assistance throughout the past year. 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.
We also want to thank the Mayor and Village Council for providing leadership and taking necessary
actions to continue a standard of financial excellence for the Village.
Respectfully submitted,
Jeremy Allen, ICMA-CM
Village Manager
Jeff Snyder, CPA, CGMA
Finance Director
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Agenda Item #3.
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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, 2021
Executive Director/CEO
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Agenda Item #3.
VILLAGE OF TEQUESTA, FLORIDA
ORGANIZATION CHART
SEPTEMBER 30, 2022
Vil
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Agenda Item #3.
VILLAGE OF TEQUESTA, FLORIDA
LIST OF PRINCIPAL OFFICIALS
SEPTEMBER 30, 2022
VILLAGE COUNCIL
Mo I ly Young
Kyle Stone
Laurie Brandon
Frank D'Ambra, III
Aaron Johnson
Jeremy Allen, ICMA-CM
Davis & Associates, PA
Lori McWilliams, MMC
Jeffery Snyder, CPA, CGMA
Jim Trube
Gus Medina
Merlene Reid, Ed.D., SPHR
NZ Consultants, Inc.
Jose Rodriguez
Greg Corbitt
Marjorie Craig, PE
Mayor
Vice -Mayor
Councilmember
Councilmember
Councilmember
VILLAGE OFFICIALS
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 #3.
FINANCIAL SECTION
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Agenda Item #3.
INDEPENDENT AUDITORS'REPORT
Page 28 of 2340
Agenda Item #3.
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
Opinions
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, 2022, and the related notes to the financial statements, which collectively
comprise the Village's basic financial statements as listed in the table of contents.
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, 2022, 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.
Basisfor Opinions
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 Goi�ernment Auditing Standards, issued by the
Comptroller General of the United States. Our responsibilities under those standards are further described in the
Auditor's Responsibilities for the Audit of the Financial State I ments section of our report. We are required to be
independent of the Village and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinions.
Emphasis of Matter
As described in Note IJ to the financial statements, as of October 1, 2021, the Village adopted new accounting
guidance, GAS13 Statement No. 87, Leases. Our opinions are not modified with respect to this matter.
Responsibilities qfManagementfor the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with
accounting principles generally accepted in the United States of America, and for 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the Village's ability to continue as a going, concern for
twelve months beyond the financial statement date, including any currently known information that may raise
substantial doubt shortly thereafter.
1401 MANATEE AVENUE WEST, SUITE 1200 - BRADENTON, FLORIDA 34205 - 941-747-4483 - 855-891-0070 - FAX 941-747-6035 - ",Ww.111jcpa.Com
Members of The American Institute of Certified Public Accountants Page 29 of 2340
Agenda Item #3.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that
an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards
will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial
likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based
on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Village's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the Village's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control -related matters that we
identified during the audit.
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 98 through 113) be presented to supplement the basic
financial statements. Such information is the responsibility of management and, 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.
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2
Agenda Item #3.
Supplementary 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 accompanying combining and individual nonmajor fund financial
statements and schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations
Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, are
presented for purposes of additional analysis and are not a required part of the basic financial statements. Such
information is the responsibility of management and was derived from and relates directly to the underlying
accounting and other records used to prepare the basic financial statements. The 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 infori-nation 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 nonmajor fund financial statements 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.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises
the introductory and statistical sections but does not include the basic financial statements and our auditor's report
thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an
opinion or any form of assurance thereon.
in connection with our audit of the basic financial statements, our responsibility is to read the other information and
consider whether a material inconsistency exists between the other information and the basic financial statements, or
the other information otherwise appears to be materially misstated. If, based on the work perforryied, we conclude
that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
in accordance with Government Auditing Standards, we have also issued our report dated March 8, 2023, 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 8, 2023
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3
Agenda Item #3.
MANAGEMENT'S DISCUSSION AND ANALYSIS
(MD&A)
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Agenda Item #3.
Management's Discussion and Analysis 2022
Village of Tequesta, Florida
Management's Discussion and Analysis
As management of the Village of Tequesta, we offer the following narrative overview and analysis of the
financial activities of the Village of Tequesta (Village) for the fiscal year ended September 30, 2022. We
encourage readers to consider this overview and analysis in combination with the basic financial statements,
notes to the financial statements, and the additional information that we have furnished in the letter of
transmittal found on pages i to iv of this report.
Financial Hiphfi2hts
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 $44,353,314. Of total net
position, 16,213,716 (36.6%) is unrestricted and may be used to meet the ongoing obligations to the
citizens and creditors.
The Village's total net position increased during the current period. Net position for governmental
activities increased by $2,995,972, half of which was the recognition of the American Rescue Plan
Act grant that the Village received. The business -type activities net position increased by $1,124,442,
due mainly to modest increases in user fees to fund needed capital improvements in the systems.
At the close of the current fiscal year, the Village's governmental funds reported a change in
combined fund balances of $(256,155) due to a planned spend down of reserves for the completion of
the community center building project.
At the end of the current fiscal year, total fund balance for the general fund was $8,011,879, or
54.9% of general fund operating expenditures and other financing uses. Of this balance, $812,308
was non -spendable for inventories and prepaid expenditures; $288,000 was restricted for debt service
and S500,000 was committed to hurricane/disaster relief; $2,036,098 was assigned for the subsequent
year's budget; and $4,375,473, or 30.0% 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
$6,911,571.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Village's basic financial
statements. The Village's basic financial statements consist of three components: 1) govemment-wide
financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also
contains supplementary information intended to furnish additional detail to support the basic financial
statements themselves.
Government -wide Financial Statements: The government-widefinancial statements are designed to provide
readers with a broad overview of the Village's finances, in a manner similar to a private -sector business.
The statement oJ'net position presents financial information on all of the Village's assets, liabilities, and
deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the Village of
Tequesta is improving or deteriorating.
Page 33 of 2340
4
Agenda Item #3.
Management's Discussion and Analysis 2022
The statement of activities presents information showing how the Village'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 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 (husiness-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 goverriment-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 financial and
legal requirements. All of the funds of the Village can be divided into three categories: governmental funds,
proprietary funds, and fiduciary funds.
Governmental Funds. Governmentalfunds 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 utilize the modified accrual basis of accounting
which focuses on near -term injlo",,s and ouylows oJ'spendahle resources, as well as on balances of'
spendable resources available at the end of the fiscal year. Such information is 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./unds and governmental
activities.
The Village 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-maj or 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 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's governmental fund financial statements can be found on pages 21-24 of this report.
Proprietaty Funds. The Village maintains one type of proprietary fund — enterprise funds. Enterprisefunds
utilize the full accrual basis of accounting which is the same basis used to report the same functions
presented as business -type activities in the govemment-wide financial statements. The Village uses
enterprise funds to account for its water, stormwater, and refuse and recycling funds.
Page 34 of 2340
Agenda Item #3.
Management's Discussion and Analysis 2022
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 maintains one type of fiduciary fund — a Pension trustfund 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 30-97 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'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 98-113 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 114-121 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
$44,353,314 at the close of the 2022 fiscal year. Net Position in governmental activities recorded an increase
of 17.88%. The Village's business -type activities recorded a 5.04% increase in total net position. The
majority of this change was due to a change of current and other assets by $2,910,898 which is a result of
better than anticipated pension returns and the implementation of GASB No.87 on leases provided an
increase in receivables as well as a new entry for deferred inflow leases. The completion of the community
center building resulted in an increase in capital assets of $1,510,627. Noncurrent liabilities also decreased
by $1,964,908.
Page 35 of 2340
Agenda Item #3.
Management's Discussion and Analysis
2022
Current and other assets
Capital assets, net
Total assets
S 15.818,554 S 12,907,656 $ 9,130,155 $ 7,637,085 S 24,948,709 $ 20,544,741
17,364,642 15,854,015 17,980,929 18,133,873 35,345,571 33,987,888
33,183,196 28,761,671 27,111,084 25,770,958 60,294,280 54,532,629
Total deferred outflows of
resources
I �990,09 1
2,078,961
553�740
573,963
2,543.831
2,652,924
Noncurrent liabilities
7,965,616
9,930,524
2,463,697
2,774,913
10,429,313
12,705,437
Other liabilities
1,292,358
2,323,967
850,192
788,275
2,142,550
3,112,242
Total liabilities
9,257,974
12,254,491
3,313,889
3,563,188
12,571,863
15,817,679
Total deferred inflows of resources 4�905,811 825,347 934,169 489�409 5,939,980 1,314,756
Net position
Net investment in
capital assets
10,335.163
7,103,735
15,642,791
15,470,616
25,977,954
22,574,351
Restricted
Infrastructure
568,199
59,172
-
-
568,199
59,172
Debt Service
288,000
561,007
391,822
376,728
679,822
937,735
Building
832,828
864,932
-
-
832,828
864,932
Low Enforcement
90,795
143,689
-
-
80,795
143,689
Unrestricted
8,831,563
9,028,159
7,392,153
6,444,990
16,213,716
15,473,139
Total not position
$ 20,936,548
$ 17,760,694
$ 23,416,766
$ 22,292,324
$ 44,353,314
$ 40,053,018
The largest portion of the Village's total net position (58.6%) 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's net position (4.9%) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of S 16,213,716 is unrestricted and may be used
to meet the government's ongoing obligations to its citizens and creditors.
At the end of the current fiscal year, the Village 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 36 of 2340
7
Agenda Item #3.
Management's Discussion and Analysis 2022
Restricted
Unrestricted
Net Investrnent in
capital assets
Village of Tequesta
Components of Net Position
$- $10,000,000 $20,000,000 $30,000,000
02021
02022
Page 37 of 2340
Agenda Item #3.
Management's Discussion and Analysis
2022
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
3,603,521
4,358,422
$ 7,577,143
$ 7,578,612
$ 11,180,664
$ 11,937,034
1,581,739
1,676,429
-
19,157
1,581,739
1,695,586
61,667
63,568
108,464
-
170,131
63,568
8,260,937
7,848,744
-
8,260,937
7,848,744
2,170,196
1,966,890
2,170,196
1,966,890
5330,165
509,963
530,165
509,963
1,062,1 17
901,243
1,062,117
901,243
58,188
13,296
(6,014)
7,917
52,174
21,213
972
26,524
6,803
29,834
7,775
56,358
23,999
54,949
45,162
64,074
69,161
119,023
17,353,501
17,420,028
7,731,558
7,699,594
25,085,059
25,119,622
2,961,670
3,121,260
2,961,670
3,121,260
7,926,208
7,507,748
7,926,208
7,507�748
1,986,016
1,944,570
1,986,016
1,944,570
1,055,418
701,364
1,055,418
701,364
239.652
59,662
116,584
131�391
356,236
191,053
-
-
5,434,986
5,679,124
5,434,986
5,679,124
715,004
524,732
715,004
524,732
-
-
529,107
511,299
529,107
511,299
14,168,964
13,334,604
6,795,681
6,846,546
20,964,645
20,181,150
Increase in net position before transfers
3,184,537
4,085,424
935,877
853,048 4,120,414 4,938,472
Transfers
(188,565)
21,891
188,565
(21,891) - -
Increase in net position
2,995,972
4,107�315
1,124,442
$ 831,157 4,120�414 4,938,472
Net position - beginning (restated)
17,940,576
13,653,379
22,292,324
21,461,167 40,232,900 35,114,546
Net position - ending S 20,936,548 $ 17,760,694 $ 23,416,766 S 22,292,324 $ 44,353,314 $ 40,053,018
For fiscal year ended September 30, 2022, the Village's overall net position increased from the prior fiscal
year. Revenues increased in the governmental activities as well as in business -type activities. Combined
entity wide revenues exceeded expenses for fiscal year ended September 30, 2022 by $4,120,414. Combined
revenues entity -wide remained rather flat between FY 2021-22 and FY 2020-21 due to increases in ad
valorem taxes (property values appreciating) and decreases in charges for services (reduced plan review fees
for large construction project completion during the year). Revenues increased in business -type activities due
to a modest increase in water utility fees.
Governmental Activities - Expenses and Program/General Revenues
Governmental activities. As previously stated, overall revenue from governmental activities decreased from
the prior year due largely to a reduction in fire plan review fees large project. The increase in property tax
revenue was primarily due to increases in property values. Also significantly impacting the Village's
operation results was the infusion of operating grants, ARPA and COVID-19 funds in the current fiscal year
as well as the prior fiscal year. The results of the Village's operations allowed for an overall increase in net
position of $2,995,972.
Page 38 of 2340
9
Agenda Item #3.
Management's Discussion and Analysis 2022
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
NO
ORevenues NExpenses
The Village's programs/functions include General Government, Public Safety, Transportation and Leisure
Services. The net cost shows the extent to which the Village's general revenues support each of the Village's
programs/functions. The net cost of all governmental activities this year was $8,922,037, a 23.30% increase
from the prior period. Revenues decreases in building permit fees and fire plan review fees (due to a very
large project started in the prior fiscal year) impacted net income for governmental activities. As shown on
the Statement of Activities, the functions directly benefiting from the programs generated revenue of
$5,246,927 with $11,918,009 financed through general revenues.
Page 39 of 2340
10
Agenda Item #3.
Management's Discussion and Analysis 2022
The following is a comparison of revenues by source for governmental activities for fiscal year 2022 and
2021.
Revenues by Source - Governmental Activities
in Thousands
$9,000
$8,000 2021
2022
$7,000
S6,000
S5,000
$4,000
$3,000
$2,000
S1,000
$0 T
p
Cr
Business -type Activities. The Village's business -type activities reported operating revenues exceeding
expenses by $889,926. Non -operating revenues were $234,516. This resulted in an increase in net position of
$1,124,442 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 Stolinwater Utility
ERevenue NExpenses
Page 40 of 2340
Agenda Item #3.
Management's Discussion and Analysis 2022
As shown in the chart below, revenues from charges for services reported in business -type activities
increased by $(1,469) from the prior year. A modest increase in water sales in the Water Utility Fund resulted
in revenues remaining very flat with less than a 1% change. The Stormwater Utility reported increases in
revenues of 8.9% 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. This
revenue category increased by 130.4% from the previous fiscal year due to a transfer of ARTA funds to the
Stormwater Utility fund for a much needed system repairs.
Revenues by Source - Business -Type Activities
in Thousands
$8,000
$7,000
$6,000 202
$5,000 022
$4,000
$3,000
$2,000 2022 2021
$1,000
$0
Charges for Services Nm-operating
Financial Analysis of the Villa2e's Funds
As noted earlier, the Village uses fund accounting to ensure and demonstrate compliance with finance-relatcd
legal requirements.
Governmental funds: The focus of the Village's governMentalfunds 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
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, 2022 the Village's governmental funds reported total combined fund balances of
$10,066,920. $4,375,473 (43%) of the combined governmental fund balances is unassigned and is available
for spending at the Village's discretion. Approximately 30.7% or $3,090,473 is assigned or committed, with
the largest portion assigned to subsequent year's budget. Approximately 17.6 % or $1,769,822 is restricted
for a particular purpose (i.e. debt service, Law Enforcement Trust funds, etc.). $831,152 is in nonspendable
form (i.e. inventories, prepaid items, etc.). Total combined fund balances have decreased 0.75% from the
prior year.
Page 41 of 2340
12
Agenda Item #3.
Management's Discussion and Analysis 2022
2021
2021
Governmental Funds
Components of Fund Balance
September 30, 2022 and 2021
$0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000
• Committed
Nonspenclable
• Restricted
• Assigned
• Unassigned
The General Fund is the chief operating fund of the Village. At the end of the current fiscal year total fund
balance was S8,011,879, an increase of $1,805,499 from the prior year. Unassigned fund balance of
$4,375,473, increased by $18,609 (0.43%) 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 32% of fiscal year 2022 General Fund expenditures and
total fund balance represents approximately 58% of total expenditures. The Village's policy to keep
unassigned fund balance at a minimum of two months (17%) of expenditures.
Page 42 of 2340
13
Agenda Item #3.
Management's Discussion and Analysis 2022
1 2021
2021
Governmental Funds
Components of Fund Balance
September 30, 2022 and 2021
$0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000
• Committed
Nonspendable
• Restricted
• Assigned
• Unassigned
14
Page 43 of 2340
Agenda Item #3.
Management's Discussion and Analysis 2022
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
S 8,260,937
50.1%
$ 412,193
5.3%
$ 7,848,744
Othertaxes
2,170,196
13.2%
203,306
10.3%
1,966,890
Charges for services
1,648,315
10.0%
(433,643)
(20.8)%
2,081,958
Intergovernmental
1,062,117
6.4%
(1,577,210)
(59.8)%
2,639,327
Intragovernmental
856,342
5.2%
(174,955)
(17.0)%
1,031,297
Franchise fees
530,165
3.2%
20,202
4.0%
509,963
Licenses and permits
8,350
0.1%
7,300
695.2%
1,050
Rents and Royalties
231,443
1.4%
4,437
2.0%
227,006
Fines and forfeitures
15,023
0.1%
(7,783)
(34.1)%
22,806
Misc. grants and contributions
1,659,940
10.1%
1,604,891
2915.4%
55,049
Investment earnings
51,163
0.3%
43,613
577.7%
7,550
Total Revenue
$ 16,493,991
100%
$ 102,351
0.6%
$ 16,391,640
As noted in the table above, total General Fund revenues increased by S 102,351 (0.6%). The largest changes
were due to: 1) increased ad valorem tax revenue resulting from increased property values; 2) decreased fire
plan review/land development fees due to new residential developments; 3) decreased indirect cost revenue
recovery stemming from a reduction charged to the Water utility enterprise fund; and 4) recognition of grant
revenue under the American Rescue Plan Act funding was recorded as intergovernmental last year and
miscellaneous grants in current year.
Expenditures in the General Fund are shown in the following schedule:
General government
2,905,106
20.9%
214,445
8.0%
2,690,661
Public Safety
7,602,757
54.8%
139,109
1.9%
7,463,648
Transportation
1,391,122
10.0%
(12,828)
(0.9)%
1,403,950
Leisure services
820,522
5.9%
214,159
35.3%
606,363
Debt service
884,770
6.4%
395,011
80.7%
489,759
Capital outlay
270,273
1.9%
(364,056)
(57.4)%
634,329
Total expenditures
13,874,550
100%
585,840
4.4%
13,288,710
Total General fund expenditures increased from the prior year by $585,840 or 4.4%. Comprehensive
Planning accounted for a significant portion of the general government increase, $130,000 is due to major
development activity. The large change in Leisure services is related to the construction of the new
community center and the costs of relocating and start up for the completed building. The Village's purchase
of an ambulance and acquisition of computer hardware during the prior fiscal year resulted in the decrease of
$364,056 or 57.4%. Below is a graphical presentation of how the Village expends funds and how they
compare to the prior period.
Page 44 of 2340
15
Agenda Item #3.
Management's Discussion and Analysis 2022
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
2022
2021
General Fund - Expenditures by Source
in Thousands
The fund balance of the Village's Capital Projects fund Major Fund decreased by $2,413,716 from the prior
year, as a result of spending the issuance of debt from to complete the construction of the new community
center at Constitution Park. This fund also had decreased expenditures of $2,389,552 from the prior year due
primarily to costs incurred in connection with construction of the community center project.
At September 30, 2022, ending fund balances for the Non -major Special Revenue funds are as follows:
Building Fund - $872,530; Special Law Enforcement Fund - $133,522. The ending fund balances in the
Non -major Capital Projects Fund are as follows: Capital Improvement Fund - S912,61 1. 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 $2,137,500, the majority of which was
for the purchase of two fire trucks which was planned to be funded from a bank loan. Unfortunately the two
fire trucks are casualties of the supply chain issues and will not be completed until fiscal year 2022-23 or
possibly the following year. The General Fund expenditures were less than appropriations by $748,552 or
5.4% when the cost of the fire trucks, $1,865,588 are removed.
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 $23,416,766 an increase of $1,124,442 from the prior period as
Page 45 of 2340
16
Agenda Item #3.
Management's Discussion and Analysis
2022
shown below. Other factors concerning the finances of this major fund have already been addressed in the
discussion of the Village's business -type activities.
Operating
Income (Loss)
Chan2e in Net Position
2022
2021
2022
2021
Water $ 1,144,584
418,690 $
1,174,434
913,413
Storrawater (224,737)
(64,013)
(28,351)
(57,963)
Refuse and Recycling (21,801)
(24,656)
(21,641)
(24,293)
$ 898,046
$ 330,021 $
1,124,442 $
831,157
Capital Assets and Debt Administration
Capital assets: The Village's capital assets for its governmental and business -type activities total
$35,345,571 (net accumulated depreciation) as of September 30, 2022. The Village acquired $3,231,808 in
assets during the year and disposed of $378,175 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
S 634,017
83,335
$ 83,335
717,352
717,352
Construction in progress
18,750
4,536,072
834,115
216,730
852,865
4,752,802
Buildings
14,693,652
8,004,908
972,980
972,980
15,666,632
8,977,888
linprovernents
2,509,454
2,509,454
58,720
58,720
2�569,174
2,568,174
Infrastructure
5,265,715
5,223,601
37,702,900
37,644,930
42,968,615
42,868,531
Machinery & Equipment
4,997,633
4,654,716
2,071,294
2,110,855
7,068,927
6,765,571
Intangibles
-
274,455
48,649
129,096
48,649
403,551
Other - K-9
20,549
20,549
-
-
20,549
20,549
Total capital assets
29,139�770
25,857,772
41,771,993
41,216,646
69,911,763
67,074,418
Less accumulated depreciation
(10,775,128)
(10,003,757)
(23,807,352)
(23,082,773)
(34,582,480)
(33,086,530
Total capital assets, net
17�364,642
S 15,854,015
$ 17,964,641
$ 18,133,873
$ 35,329,283
$ 33,987,888
Page 46 of 2340
17
Agenda Item #3.
Management's Discussion and Analysis
2022
Noncurrent liabilities
noncurrent liabilities.
America that are se(
position.
: At the end of the current fiscal year, the Village had a total of $11,388,940 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
$183,405 and a total OPEB liability of $913,400, 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
$ 6�693,000
$ 7,254,007
$ 2,344,386
$ 2,721,115
$ 9,037,386
$ 9,975,122
Financed purchases
336,478
493,543
-
-
336,478
493,543
Cornponsated absences
72,954
791,398
143,902
144,219
216,856
935,617
Total OPEB Liability
714�574
344,733
198,826
102,540
913,400
447,273
Noncurrent Liabilities
7,817,006
8,883,681
2,687,114
2,967,874
10,504,120
11,851,555
Net Pension Liability
-
1,870,706
183,405
198,767
183,405
2,069,473
Total Noncurrent Liabilities
7,817,006
S 10,754,387
$ 2,870,519
$ 3,166,641
$ 10,687,525
$ 13,921,028
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 2022-2023 fiscal year budget:
• The Village Council's decision to keep the millage rate constant at 6.6290.
• Significant sales in existing homes caused the gross taxable value of properties to increase 14.5%.
Approximately 80% of the residential housing have the homestead exemption.
• Inflation eroding buying power for the Village purchases.
• Interest rates were increasing due to significant inflation which will increase interest earnings for
excess cash.
• The Village Council approved water rate increase of 3.5% to fund capital needs.
• Village Council approved increase of 3.5% in refuse and recycling rates.
• Village Council approved increase of 5.0% 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 47 of 2340
18
Agenda Item #3.
BASIC FINANCIAL STATEMENTS
Page 48 of 2340
Agenda Item #3.
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF NET POSITION
SEPTEMBER 30,2022
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
Accrued interest 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
Deferred inflows - leases
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 q7pe
Activities Activities Total
6,703,821 $
4,937,354 $
11,641,175
2,451,086
2,451,085
4,902,171
2,157,247
925,712
3,082,959
65,637
223,061
288,698
765,515
88,997
854,512
3,675,248
503,946
4,179,194
652,767
917,450
1,570,217
16,711,875
17,063,479
33,775,354
33,t83,196
27,111,084
60,294,280
1,666,803 341,154
2,007,957
323,288 89,954
413,242
- 122,632
122,632
1,990,091 553,740
2,543,831
376,584
362,468
739,052
351,951
36,270
388,221
72,954
-
72,954
-
42,430
42,430
4,300
-
4,300
6,718
2,202
8,920
552,805
406,822
959,627
7,251,042
2,081,466
9,332,508
714,574
198,826
913,400
-
183,405
183,405
9,330,928
3,313,889
12,644,817
3,568,978
934,169 4,503,147
1,336,833
- 1,336,833
4,905,811
934,169 5,839,980
10,335,163 15,642,791 25,977,954
568,199
- 568,199
288,000
391,822 679,822
832,828
- 832,828
80,795
- 80,795
8,831,563
7,382,153 16,213,716
S 20,936,548
23,416,766 44,353,314
The accompanying notes are an integralpart of thesefinancial statements.
Page 49 of 2340
19
Agenda Item #3.
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
Net (Expense) Revenue and
Prograin 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
2,961,670
1,548,158 $
-
-
$ (1,413,512)
$ (1,413,512)
Public safety
7,926,208
2,017,300
1,572,585
61,667
(4,274,656)
(4,274,656)
Transportation
1,986,016
-
8,654
-
(1,977,362)
(1,977,362)
Lei-ure services
1,055,418
38,063
500
(1�016,855)
(1,016,855)
Interest on long-term debt
239,652
-
-
(239,652)
(239,652)
Total governmental activities
14,168,964
3,603,521
1,581,739
6t,667
(8,922,037)
(8,922,037)
Business -type Activities
Water
5,551,570
6,579,570
-
108,464
1,136,464
1,136,464
Storm"ater utility
715,004
490,267
-
(224,737)
(224,737)
Refuse and Recycling
529J07
507,306
-
(21,801)
(21,801)
Total business -type activities
6,795,681
7,577,143
108,464
889,926
889,926
Total primary government
$ 20,964fi45 $
11,180,664 $
1,581,739 $
170,131
(8�922,037)
889,926
(8,032,111)
General Revenues and transfers
General revenues:
Ad valorem taxes
Utility taxes
Communication service tax
Insurance premium taxes
Infrustructure surtax
Business taxes
Franchise fees based on gross receipts
Unrestricted intergovernmental revenues
Unrestricted investment earnings
Gain on sale ofcapital assets
Miscellaneous revenues
Transfers
Total general revenues and transfers
Change in net position
Net Position - Beginning (restated)
Net Position - Ending
8,260,937
8,260,937
888,384
888,384
327,900
327,900
293,595
293,595
568,0337
568,037
92,280
92,280
530,165
530,165
1,062,117
1,062,1 t7
58,188
(6,014)
52,174
972
6,803
7,775
23,999
45,162
69,161
(188,565)
188,565
-
11,918�009
234,516
12,152,525
2,995,972
1,124,442
4,120,414
17,940,576
22,292,324
40,232,900
20,936�548
23,416,766 $
44,353,314
The aeeompanying notes are an integralpart of thesefinaneial statements.
Page 50 of 2340
20
Agenda Item #3.
VILLAGE OF TEQUESTA, FLORIDA
Assets
Cash
Investments
Receivables, net
Inventories
Prepaid items
Total Assets
Liabilities
Accounts payable
Accrued liabilities
Unearned revenue
Due to other governments
Total Liabilities
Deferred Inflows of Resources
Deferred inflows - leases
Total Deferred Inflows of Resources
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
BALANCESHEET
GOVERNMENTALFUNDS
SEPTEMBER 30, 2022
Nonmajor Total
General Capital Governmental Governmental
Fund Projects Funds Funds
$ 4,632,774 $ 136,361 $ 1,934,686 $ 6,703,821
2,451,086 - - 2,451,086
2,157,188 17 42 2,157,247
65,355 - 282 65,637
746,953 - 18,562 765,515
10,053,356 136,378 1,953,572 12,143,306
354,995
21,589 $
376,584
343,952
7,999
351,951
4,300
-
4,300
1,397
5,321
6,718
704,644
34,909
739,553
1,336,833
-
1,336,833
1,336,833
1,336,833
65,355 282 65,637
746,953 18,562 765,515
- - 568,199 568,199
288,000 - - 288,000
- - 832,828 832,828
- 80,795 80,795
500,000 - 500,000
- - 312,722 312,722
- 128,378 31,690 160,068
2,036,098 8,000 73,585 2,117,683
4,375,473 - - 4,375,473
8,011,879 136,378 1,918,663 10,066,920
S 10,053,356 S 136,378 $ 1,953,572 $ 12,143,306
The accompanying notes are an integral part of thesefinancialstatements.
Page 51 of 2340
21
Agenda Item #3.
VILLAGE OF TEQUESTA, FLORIDA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
SEPTEMBER 30,2022
Amounts reported for governmental activities in the statement of net position are
different because:
Total Fund Balances - Governmental Funds
Net pension asset is not considered to represent a financial asset in
the governmental funds.
Net capital assets used in the governmental activities are not financial resources
and, therefore are not reported in the governmental funds.
Deferred outflows of resources related to pensions and OPEB transactions not reported
in the governmental funds.
Deferred inflows of resources related to pension transactions not recognized
in the governmental funds.
Long-term liabilities, including notes payable, are not due and payable in the
current period and, therefore, are not reported in the governmental funds.
Total OPEB liability is not due and payable in the current period and, therefore,
not reported in the governmental funds.
Net Position of Governmental Activities
$ 10,066,920
3,675,248
17,364,642
1,990,091
(3,568,978)
(7,876,801)
(714,574)
$ 20,936,548
The accompanying notes are an integralpart of thesefinancial statements.
Page 52 of 2340
22
Agenda Item #3.
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30.2022
Revenues
Ad valorem taxes
Othertaxes
Charges for services
Intergovernmental
Tntragovernmental
Licenses and permits
Franchise fees
Rents and royalties
Miscellaneous
Fines and forfeitures
Grants, contributions and donations
Investment earnings
Total Revenues
Expenditures
Current:
Leisure services
Public safety
Transportation
General government
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
Total other financing sources (uses)
Net change in fund balances
Fund Balances - Beginning (restated)
Fund Balances - Ending
Nonmajor
Total
General
Capital
Governmental
Governmental
Fund
Proj ects
Funds
Funds
$ 8,260,937 $
-
$
$ 8,260,937
2,170,196
-
2,170,196
1,648,315
-
5,546
1,653,861
1,062,117
-
-
1,062,117
856,342
-
-
856,342
8,350
-
751,857
760,207
530,165
-
-
530,165
2-11,443
-
-
231,44-1
16,534
-
55
16,589
15,023
-
94,055
109,078
1,643,406
-
-
1,643,406
51,163
1,087
5,938
58,188
16,493,991
1,087
857,451
17,352,529
820,522
7,132
-
827,654
7,602,757
-
812,080
8,414,837
1,391,122
255,000
186,149
1,832,271
2,905,106
-
-
2,905,106
270,273
2,152,671
133,509
2,556,453
718,072
-
-
718,072
166,698
-
-
166,698
13,874,550
2,414,803
1,131,738
17,421,091
2,619,441
(2,413,716)
(274,287)
(68,562)
-
-
806,231
806,2311
(994,796)
-
-
(994,796)
972
-
-
972
(993,824)
-
806,231
(187,593)
1,625,617
(2,413,716)
531,944
(256,155)
6,386,262
2,550,094
1,386,719
10,323,075
8,011,879 $
136,378
$ 1,918,663
10,066,920
The accoinpanying notes are an integral part of thesefinancialstatenients.
Page 53 of 2340
23
Agenda Item #3.
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 30,2022
Amounts reported for governmental activities in the statement of activities
are different because:
Net change in fund balances - total governmental funds $ (256,155)
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/amoitization in the current period.
The details of the difference are as follows:
Capital outlay 2,556,453
Depreciation/amottization expense (1,045,826) 1,510,627
The issuance of long-tenn debt provides current financial resources to
governmental funds, while the repayment of the principal of long-term debt
consumes the current financial resources of governmental funds. Neither
transaction, however, has any effect on net position.
Payment on notes payable 561,007
Payment on financed purchases 157,065 718,072
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:
Accrued interest payable
(72,954)
Compensated absences
17,029
Total OPEB liability
(62,156)
Net pension related
1,141,509 1,023,428_
Change in net position of governmental activities
$ 2,995,972
The accompanying notes are an integralpart of'thesefinancial statements.
Page 54 of 2340
24
Agenda Item #3.
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30.2022
Business -type Activities
Nonmajor
Water
Refuse &
Fund
Stormwater
Recycling
Total
Assets
Current Assets:
Cash
4,769,375
54,903 S
113,076
4,937,354
Investments
2,451,085
-
-
2,451,085
Receivables, net
911,791
11,003
2,918
925,712
Inventories
223,012
49
-
223,061
Prepaid items
88,205
792
-
88,997
Total Current Assets
8,443,468
66,747
115,994
8,626,209
Non -current Assets:
Net pension asset
463,787
40,159
-
503,946
Capital assets not being depreciated
911,232
6,218
-
917,450
Capital assets being depreciated, net
15,132,455
1,931,024
-
17,063,479
Total Non -Current Assets
16,507,474
1,977,401
-
18,484,875
Total Assets
24,950,942
2,044,148
115,994
27,111,084
Deferred Outflows of Resources
Deferred outflows - pensions
320,180
20,974
-
341,154
Deferred outflows - OPEB
82,858
7,096
-
89,954
Deferred charge on refunding
122,632
-
-
122,632
Total Deferred Outflows of Resources
525,670
28,070
-
553,740
Liabilities
Current Liabilities:
Accounts payable
255,449 $
63,668
43,351
$ 362,468
Accrued liabilities
34,494
1,776
-
36,270
Customer deposits
42,430
-
-
42,430
Compensated absences
15,000
-
-
15,000
Due to other governments
2,202
-
-
2,202
Notes payable
391,822
-
-
391,822_
Total Current Liabilities
741,397
65,444
43,351
850,192
Noncurrent Liabilities:
Compensated absences
128,261
641
-
129,902
Notes payable
1,952,564
-
-
1,952,564
Net pension liability
183,405
-
-
183,405
Total OPEB liability
183,141
15,685
-
198,826
Total Noncurrent Liabilities
2,447,371
16,326
-
2,463,697
Total Liabilities
3,188,768
81,770
43,351
3,313,889
Deferred Inflows of Resources
Deferred inflows - pensions
891,769
42,400
-
934,169
Total Deferred Inflows of Resources
891,769
42,400
-
934,169
Net Position
Net investment in capital assets
13,769,738
1,873,053
-
15,642,791
Restricted:
Debt Service
391,822
-
-
391,822
Unrestricted
7,234,515
74,995
72,643
7,382,153
Total Net Position
21,396,075 $
1,948,048 $
72,643
$ 23,416,766
The accompanying notes are an integral part of thesefinancial statements.
Page 55 of 2340
25
Agenda Item #3.
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF REVENUES, EXPENSES AND CRANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
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 services
Administration
Depreciation/amortization
Total Operating Expenses
Operating Income (Loss)
Non -Operating Revenues (Expenses)
Investment earnings (loss)
Interest expense
Gain on disposal of capital assets
Transfers in
Miscellaneous revenue
Capital contributions
Total Non -Operating Revenues, Net
Change in Net Position
Net Position - Beginning
Net Position - Ending
Business -type Activities
Nonmajor
Water Refuse &
Fund Stormwater Recycling Total
6,579,570 $ - $ - $ 6,579,570
- 490,267 - 490,267
- 507,306 507,306
6,579,570 490,267 507,306 7,577,143
2,446,029
2,446,029
971,027
-
971,027
-
481,131
-
481,131
-
-
520,400
520,400
655,209
86,413
8,707
750,329
681,882
-
-
681,882
680,839
147,460
-
828,299
5,434,986
715,004
529,107
6,679,097
1,144,584
(224,737)
(21,801)
898,046
(6,242) 68
160 (6,014)
(116,584) -
- (116,584)
6,803 -
- 6,803
- 188,565
- 198,565
37,409 7,753
- 45,162
108,464 -
- 109,464
29,850
196,386
160
226,396
1,174,434
(28,3511)
(21,641)
1,124,442
20,221,641
1,976,399
94,284
22,292,324
$ 21,396,075 $
1,948,048 $
72,643
$ 23,416,766
The accompanying notes are an integralpart of thesefinancial statements.
Page 56 of 2340
26
Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
Business -type Activities
Water
Storm Water
Refuse
Fund
Fund
Nonmajor Fund
Totals
Cash Flows from Operating Activities
Cash received from customers, governments and other funds
$ 6,500,317
$ 498,359
508,141
$ 7,506,817
Cash paid to suppliers
(2,796,963)
(417,389)
(527,637)
(3,741,989)
Cash paid to employees
(1,890,715)
(136,741)
-
(2,027,456)
Net Cash Provided by (Used in) Operating Activities
1,812,639
(55,771)
(19,496)
1,737,372
Cash Flows from Non Capital Financing Activities
Sbort-terrn interfund borrowings 45,000 (45,000) -
Transfers from other funds - 188,565 188,565
Net Cash Provided by Non Capital Financing Activities 45,000 143,565
Cash Flows from Capital and Related Financing Activities
Acquisition and construction of capital assets (611,167) (64,199)
Cash received fi-om sale of capital assets 6,803 -
Capital contributions - grants 108,464 -
Principal payments on long-term debt (376,729) -
Interest paid (95,274) -
Net Cash Used in Capital and Related Financing Activities (967,903) (64,188)
Cash Flows from Investing Activities
Purchase of investments
Interest and miesellancous income
Net Cash Provided by (Used in) 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/Arnortization
Changes in operating assets, liabilities and deferred inflows/
Outflows of resources:
(Increase) decrease in:
Accounts receivable
Inventories
Prepaid items
Increase (decrease) in:
Accounts payable
Accrued liabilities
Customer deposits
Long-term assets/liabilities
Due to other governments
Net Cash Provided by (Used in) Operating Activities
(2,459,341) -
80,082 7,821
188,565
- (675,355)
- 6,803
- 108,464
- (376,729)
- (95,274)
(1,032,091�
- (2,459,341)
160 88.063
(2,379,259) 7,821 160 (2,371,278)
(1,489,523) 31,427 (19,336) (1,477,432)
6,258,898 23,476 132,412 6,414,786
$ 4,769,375 54,903 $ 113,076 $ 4,937,354
$ 1,144,584 $ (224,737) $ (21,801) $ 898,046
680,839
147,460
- 828,299
(72,011)
8,092
835 (63,084)
421
291
- 712
5,837
405
- 6,242
23,135
21,569
1,470 46,174
6,763
335
- 7,098
(7,242)
-
- (7,242)
28,363
(9,186)
- 19,177
1,950
- 1,950
$ 1,812,639 _L_JL5,77IL $ (19,496) $ 1,737,372
Schedule of non -cash capital and related financing activities:
Unrealized loss on investments $ 48,915 $ - $
$ 48,915
The accompanying notes are an integralpart qf thesefinancial statements.
27
Page 57 of 2340
Agenda Item #3.
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30,2022
Pension
Trust
Funds
Assets
Cash and cash equivalents 555,669
Investments
Equities 17,109,363
Fixed Income 6,161,808
Real Estate Fund 3,882,142
Total investments 27,153,313
Contributions receivable
224,133
Accrued interest receivable
38,392
Prepaid items
55,199
Due from broker
240,690
Total Assets 28,267,396
Liabilities
Accounts payable 32,009
Due to broker 11,288
Deferred inflows 92,655
Total Liabilities 135,952
Net Position Restricted for Pension Benefits $ 28,131,444
The accompanying notes are an integralpart of these statement.
Page 58 of 2340
28
Agenda Item #3.
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
Pension
Trust
F1 I n &Z
Additions
Contributions:
State of Florida $ 293,595
Employer 783,931
Employee 366,672
Total Contributions 1,444,198
Investment Earnings
Net appreciation in fair value of investments (5,701,624)
Gain on sale of investments 399,324
Interest and dividends 502,248
(4,800,052)
Less investment expenses (115,901)
Net Investment Earnings (4,915,953)
Total Additions (3,471,755)
Deductions
Benefits paid 584,937
Refund of contributions 423,148
Administrative expenses 110,489
Total Deductions 1,118,574
Change in Net Position (4,590,329)
Net Position Restricted for Pension Benefits
Beginning of year 32,721,773
End of year $ 28,131,444
The accompanying notes are an integralpart of these statement.
Page 59 of 2340
29
Agenda Item #3.
NOTES TO BASIC FINANCIAL STATEMENTS
Page 60 of 2340
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
Note I — 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.
R 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 ofPresentation — 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 61 of 2340
30
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
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-�ype 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 arnong program
revenues are reported instead as general revenues.
D. Basis ofPresentation — 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 nonmaj or funds.
The Village reports the following major governmental fund:
The General Fund is the Village's primary operating fund. It accounts for all financial resources
of the general government, except those accounted for in another fund.
The 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 Stortnivater 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 fiinds account for the activities of the Public Safety Employees' (Police and
Fire) and the General Employees' Pension Trust Funds, which accumulate resources for pension
benefit payments to qualified employees.
During the course of operations, the Village has activity between funds for various purposes. Any
residual balances outstanding at year end are reported as due from/to other funds (short-term) and
advances to/from other funds (long-term). While these balances are reported in fund financial
statements, certain eliminations are made in the preparation of the government -wide financial
statements. Balances between the funds included in governmental activities are eliminated so that
Page 62 of 2340
31
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
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
busiliess-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
ide f ial statements. Transfers between the funds included in governmental
government-wi manci
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 ofAccounting
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 flinancial 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,li)cus 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 governmentalfundfinancial statements are reported using the current financial resources
measurementfocus 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, including lease
liabilities, as well as expenditures related to compensated absences, and claims and judgments, are
recorded only when payment is due. Capital asset acquisitions, including entering into contracts
giving the Village the right to use leased assets, are reported as expenditures in governmental funds.
Issuance of long-term debt and financing through leases are reported as other financing sources.
Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the current fiscal
period are all considered to be susceptible to accrual and so have been recognized as revenues of
the current fiscal period. Entitlements are recorded as revenues when all eligibility requirements are
met, including any time requirements, and the amount is received during the period or within the
availability period for this revenue source (within 60 days of year-end). Expenditure driven grants
are recognized as revenue when the qualifying expenditures have been incurred and all other
eligibility requirements have been met, and the amount is received during the period or within the
availability period for this revenue source (within 60 days of year-end). All other revenue items are
considered to be measurable and available only when cash is received by the Village.
Page 63 of 2340
32
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
The proprietaty 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 trustfunds are reported on the accrual basis of accounting. Plan member and state
contributions are recognized as revenues in the period that the contributions are due. Employer
contributions to each Plan are recognized when due and the employer has made a formal
commitment to provide the contributions. Benefits and refunds are recognized when due and
payable in accordance with the terms of the plan. All plan investments are reported at fair value,
except for a money market fund which is reported at amortized cost; securities traded in the
over-the-counter market and listed securities for which no sales were reported on that date are
valued at the last reported bid price. Securities without an established fair value are reported at
estimated fair value. Purchases and sales of securities are recorded on a trade -date basis.
F. Budgetary Information
1. Budgetary Basis of Accounting
Annual budgets are adopted on a basis consistent with generally accepted accounting principles.
The appropriated budget is prepared by fund, function and department. Per established procedures
approved by the Village Council, the designated budget officer may approve a department head's
request to transfer appropriations between accounts, within a department. Although the Village
Council requires all inter -department budget amendments to go before the Village Council, the
budget was adopted on a fund basis and the legal level of budgetary control is at 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.
G. Assets, Liabilities, Deferred OutflowslInflows of Resources, and Net PositionlFund Balance
1. Cash
The Village's cash is considered to be cash on hand and demand deposits.
2. Investments
The Village has adopted an investment policy in accordance with Section 218.415, Florida Statutes
that allows the Village to invest in relatively low risk securities, such as certificates of deposit,
money market accounts, and U.S. Government Securities and Agencies. Investments are stated at
fair value or amortized cost which approximates fair value.
Page 64 of 2340
33
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
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.
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
Page 65 of 2340
34
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
5. Leases
Lessor
The Village is a lessor for noncancellable leases of certain parcels of real property.
Lease receivable is measured at the commencement date at the present value of payments expected
to be received during the lease term. Subsequently, the lease receivable is reduced by the principal
portion of lease payments received. The deferred inflow of resources is measured as the initial
amount of the lease receivable, adjusted for lease payments received at or before the lease
commencement. Subsequently, the deferred inflow of resources is recognized as revenue over the
life of the lease term.
Lease assets are reported with other capital assets and lease receivables are reported on the balance
sheet and on the statement of net position.
6. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position reports a separate section for deftrred outflows
Of resources. This separate financial statement element represents a consumption of net assets 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 inflovl)s
oj'resources. This separate financial statement element represents an acquisition of net assets that
applies to a future period(s) and will not be recognized as an inflow of resources (revenue) until
that time. The Village has two items that qualifiy for reporting in this category - 1) Deferred
inflows related to pensions and 2) Deferred inflows related to leases. This items reported in the
balance sheet governmental funds and/or government -wide statement of net position and the
statement of net position of the proprietary funds.
7. 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.
8. 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
Page 66 of 2340
35
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
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.
9. Fund Balance Policies
The Village classifies fund balance in accordance with GAS13 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, govemmental 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.
Committedfund 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
Page 67 of 2340
36
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to
those purposes.
H. Revenues and ExpenditureslExpenses
1. Program Revenues
Amounts reported as prograin 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 Ist 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
Village's millage rate to a maximum of 10 mills, excluding voter -approved debt service millage
rates. The millage rate for the Village in fiscal year 2022 was 6.6290 mills. Tax bills are mailed out
November lst 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 Ist. The
owner of a tax certificate may at any time after taxes have been delinquent (April 1), for two years,
file an application for a tax deed sale. Tax deeds are issued to the highest bidder for the property
which is sold at public auction.
The Tax Collector remits current taxes collected through four distributions to the Village in the
first two months of the tax year and one distribution each month thereafter. The Village recognizes
property tax revenue in the period in which they are levied. The Tax Collector pays the Village
interest on monies held from day of collection to day of distribution.
3. Compensated Absences
Vacation
The Village's policy permits employees to accumulate earned but unused vacation benefits, which
are eligible for payment upon separation from the Village's service up to the maximum allowable
limit. The liability for such leave is reported as incurred in the government -wide and proprietary
fund financial statements. A liability for those amounts is recorded in the governmental funds only
if the liability has matured as a result of employee resignations or retirements. The liability for
compensated absences includes salary -related benefits, where applicable.
Sick Leave
The Village's policy permits employees to accumulate unused sick leave up to a maximum amount
approved by Council. Upon termination, this leave is eligible for payment at percentages
determined by years of service. The liability for such leave is reported as incurred in the
government -wide and proprietary fund financial statements when the liability has matured. A
liability for those amounts is recorded in the governmental funds only if the liability has matured as
a result of employee resignations or retirements.
Page 68 of 2340
37
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
4. Proprietary Funds Operating and Non -Operating Revenues and Expenses
Proprietary funds distinguish operating revenues and expenses from lion -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 qf Estim ates
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 June 2017, GASB issued Statement No. 87, Leases, which is 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. The result of implementing this
pronouncement resulted in a $179,882 increase in the fund balance of the Village's General Fund
and similarly increased the governmental activities net position of the Statement of Activities.
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.
The implementation of this pronouncement will not result in any financial impact to the Village.
In January 2020, GASB issued Statement No. 92, Omnibus 2020, which is 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
Page 69 of 2340
38
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
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, Fiduciai-v 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 or
liabilities in authoritative literature; (8) Terminology used to refer to derivative instruments. The
implementation of this pronouncement did not result in any financial impact to the Village.
In March 2020, GASB issued Statement No. 93, Replacement of Interbank f
Q,fered Rates, which is
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. The implementation of this pronouncement did not result in any
financial impact to the Village.
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. The
implementation of this pronouncement did not result in any financial impact to the Village.
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 is 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
Page 70 of 2340
39
Agenda Item #3.
VILLAGE OF TEQUESTAq FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
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. The implementation of this pronouncement did
not result in any financial impact to the Village.
Page 71 of 2340
40
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
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
goveimment-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 $17,364,642 as explained in
the following detail (additional details shown in Note 3.D.):
Capital assets not being depreciated:
Land
634,017
Construction in progress
18,750
Capital assets being depreciated:
Buildings, net
10,812,921
Improvements other than buildings, net
813,751
Infrastructure, net
3,838,690
Machinery and equipment, net
1,239,175
Other K-9, net
7,338
Net Adjustment to Increase Fund Balance -
Total Governmental Funds to Arrive at
Net Position - Governmental Activities 17,364,642
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 $7,876,801 difference are as follows:
Note payable $ 6,693,000
Financed purchases 336,478
Compensated absences 774,369
Accrued interest pyable 72,954
Net Adjustment to Reduce Fund Balance -
Total Governmental Funds to Arrive at
Net Position — Governmental Activities $ 7,876,801
Page 72 of 2340
41
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
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 (QPD) 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, 2022, none of the Village's primary bank balances or certificates of
deposit 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 Florida local government investment pool valance consists of two governmental investment
pools: Florida Cooperative Liquid Assets Securities System (FLCLASS) and Florida Surplus Asset
Fund (FLSAFE). The pools are organized under Florida Statutes Section 163, the Florida lnterlocal
Cooperation Act, by Florida public agencies for the purpose of operating an independent
investment pool for local governments and administered by a Board of Trustees elected by the
participants in the pool. FLCLASS and FLSAFE are operated in a manner consistent with SEC
Rule 2a7 of the Investment Company Act of 1940. Rule 2a7 allows SEC registered mutual funds to
use amortized cost rather than fair value, to report net position used to compute share prices if
certain conditions are met. Those conditions included restrictions on the types of investments held,
restrictions on the term to maturity of individual investments, the dollar weighted average of the
portfolio, requirement for portfolio diversification, and requirement of divestiture considerations in
the event of security downgrades and defaults, plus required actions if the fair value of the portfolio
deviates from amortized costs by a specific amount. The fair value of the position in the pools is
considered to be the same as the Village's account balance (amortized cost) in the pool. These
pools are not insured by FDIC or any other governmental agency.
Page 73 of 2340
42
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
As of September 30, 2022, the Village had the following demand deposits and investments:
Weighted Credit
Average Rating Percent
Deposits and Investments Reported Value Maturity (S&P) Distribution
Demand deposits $ 3,456,816 20.90%
Florida Class
Florida Safe
Total Deposits
Certificates of deposit
US Government Agencies
3,824,020
4,360,339
11,641,175
2,000,000 2.4 years
2,902,171 2.4 years
Total Investments 4,902,171
Total Deposits and Investments $ 16,543,346
AAAm 23.12%
AAAm 26.36%
12.09%
AA 17.54%
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) current operating funds should have maturities of no longer than
24 months and (2) core funds shall have a final maturity of five and one-half (5.5) years or less
from the date of purchase. The overall weighted average duration of principal return for the core
funds shall be less than 3 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
FLCLASS and FLSAFE Investment Pools. Both are rated by Standard & Poor's as AAAm, the
highest rating for 2a7 investment pools.
Concentration of Credit Risk — Maximum investment concentration ranges from 25% for other
municipal bonds to 100% for US Treasuries. At September 30, 2022, the Village's investments
were within the established policy levels for all investments to mitigate this 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 invested in US Government Agencies
held by a third party custodian and the highest rating by S&P for both local government investment
pools; FLCLASS and FLSAFE.
Fair value of Investments - The Village follows the provision of GASB Codification, 150:
Investments, which establishes a framework for measuring the fair value of investments in a fair
value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The
three levels of the fair value hierarchy under GASBC 150 are described below:
Page 74 of 2340
43
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
Level I — 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.
As of September 30, 2022 the Village has the following recurring fair value investments:
Quoted Prices in
Significant
Significant
Active Markets for
Observable
Unobservable
Identical Assets
Inputs
Inputs
9/30/22
(Level 1)
(Level 2)
(Level 3)
Fixed income
U.S. Agencies
S 2,902,172
$
2,902,172
S
Total fixed income
2,902,172
2,902,172
Total investments at fair value
2,902,172
$
2,902,172
Investment at net asset value (NAV)
FL Class
3,824,020
FL Safe
4,360,339
Investment at net asset value (NAV)
8,184,359
Investments at cost
Certificates of deposit (exempt)
2,000,000
Total investments
13,086,531
Demand Deposits
3,456,815
Total cash equivalent and
investments
16,543,346
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, 2022. 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:
Page 75 of 2340
44
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
Level I - 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 I of the fair value hierarchy are valued using quoted
C,
prices at September 30, 2022 (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.
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, 2022 the Public Safety Pension Trust Fund has the following recurring fair
value investments:
Quoted Prices in
Significant
Significant
Active Markets
Observable
Unobservable
for Identical
Inputs
Inputs
9/30/22
Assets (Level 1)
(Level 2)
(Level 3)
Equities
Mutual funds equities
$ 12,570,550
$ 12,570,550
Total equities
12,570,550
12,570,550
Fixed income
Corporate bonds
990,391
890,391
U.S. Government bonds
2,498,405
2,498,405
U.S. Agences
299,240
299,240
Bond mutual fund
639,144
639,144
Total fixed income
4,327,180
639,144
3,688,036
Total investments at fair value
16,897,730
S 13,209,694
3,688,036
Redemption Redemption
Investment at net asset value (NAV) Frequency Notice Period
Real Estate Fund 2,814,046 Quarterly 30 days
Total investments S 19,711,776
Page 76 of 2340
45
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
As of September 30, 2022, 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
36,164
0.18%
-%
Short -Term Money Market Fund
240,000
1.20%
1.18%
Total Cash and Cash
Equivalents
276,164
Equities
Mutual Funds
12,570,550
62.89%
61.65%
Total Equities
12,570,550
Fixed Income
Corporate Bonds:
7. 10 years
Bonds
419,679
Al
2.10%
2.06%
Bonds
265,647
A2
1.33%
1.30%
Bonds
205,065
A3
1.03%
1.01%
U.S. Government Bonds
2,498,405
12.50%
12.25%
U.S. Agencies
299,240
10.96 years
AAA
1.50%
1.47%
Bond Mutual Fund
639,144
3.20%
3.13%
Total Fixed Income
4,327,180
Real Estate Fund
2,814,046
14.08%
13.80%
Total investments
19,711,776
Total cash and investments
19,987,940
100.00%
98.03%
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, 2022, 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, 2022, the weighted average maturity in years for each investment type is
included in the preceding table and ranges from 7. 10 to 10.96 years.
Page 77 of 2340
46
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
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 comnion stock and convertible bonds (not to exceed 70%
of the fund assets at fair value). Mortgage -backed securities issued by non -government
entities are limited to 15% of the fixed income portfolio.
• Limiting investments in foreign securities (not to exceed 25% of the value at cost of the
fund).
Custodial Credit Risk - the risk that, in the event of the failure of the counterparty, the plan will not
be able to recover the value of its investments or collateral securities that are in the possession of an
outside party. The Plan's investment policy limits exposure to this risk by:
Requiring all securities to be held with a third party custodian.
Requiring security transactions between a broker/dealer and the custodian involving the
purchase or sale of securities by transfer of money or securities are made on a "delivery vs.
payment" basis to ensure that the custodian will have the security or money, as appropriate,
in hand at the conclusion of the transaction.
Foreign Currency Risk - is the risk of an investment's value changing due to changes in currency
exchange rates. Exposure to foreign currency risk is low as:
• Foreign investments are through ADR's (shares listed in the U.S.), mutual funds (registered
in the U.S.), or Yankee bonds (denominated in U.S. dollars should not to exceed 5% of total
fund).
• The investment policy permits a maximum of 25% of the fair value of the fund securities to
be invested in foreign securities.
• At September 30, 2022, 15.57% 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, 2022 and 202 1, 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 (15.03)% and 20.27% 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 78 of 2340
47
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
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, 2022 and
2021 are as follows:
Long -Term Expected Real
Target
Rate of Return
Asset Class
Allocation
Range
2022 2021
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%-310%
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
perforinance, 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, 2022
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 I - 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 I of the fair value hierarchy are valued using quoted
prices at September 30, 2022 (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 79 of 2340
48
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
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, 2022 the General Employees' Pension Trust Fund has the following recurring
fair value investments:
Quoted Prices in
Significant
Significant
Active Markets
Observable
Unobservable
for Identical
Inputs
Inputs
9/30/22
Assets (Level 1)
(Level 2)
(Level 3)
Equities
Common stocks
$ 1,802,307
$ 1,802,307
$ -
Mutual funds equities
2,736,506
2,736,506
Total equities
4,538,813
4,538,813
Fixed income
Corporate bonds
559,323
559,323
U.S. Government bonds
331,038
331,038
U.S. Agences
205,653
205,653
Bond mutual fund
294,451
294,451
Exchange traded funds
444,163
444,163
Total fixed income
1,834,628
738,614
1,096,014
Total investments at fair value
6,373,441
$ 5,277,427
1,096,014
$ -
Redemption Redemption
Investment at net asset value (NAV) Frequency Notice Period
Real Estate Fund 1,068,096 Quarterly 30 days
Total investments $ 7,441,537
Page 80 of 2340
49
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
At September 30, 2022, 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
24,006
0.31%
0.31%
Short Tenn Money Market Fund
255,500
3.31%
3.30%
Total Cash and Cash equivalents
279,506
Equities
Common stocks
1,802,307
23.34%
23.28%
Mutual funds
2,736,506
35.44%
35.34%
Total Equities
4,5 3 8,8 13.
Fixed Income
Corporate Bonds:
1.29 years
Bonds
44,249
Al
0.57%
0.57%
Bonds
164,250
A2
2.13%
2.12%
Bonds
119,900
A3
1.55%
1.55%
Bonds
230,924
Baa
2.99%
2.98%
ETF - Exchange Traded Fund
444,163
5.75%
5.74%
U.S. Government Bonds
331,038
4.29%
4.28%
U.S. Agencies
205,653 1.55 years
AAA
2.66%
2.66%
Mutual Fund
294,451
3.81%
3.80%
Total Fixed Income
1,834,628
Real Estate Fund
1,068,096
13.83%
13.80%
Total Investments
7,441,537
Total Cash and Investments
7,721,043
100.00%
99.72%
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, 2022, the weighted average maturity in years for each investment type is
included in the preceding table and ranges from 1.29 to 1.55 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 81 of 2340
50
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
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, 2022, 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 pen -nits 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, 2022, 15.22% 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, 2022 and 2021, the overall annual money -weighted rate of
return (long-term expected real rate of return) on the General Employees' Pension Plan investments
was (15.89)% and 19.38% 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 82 of 2340
51
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
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, 2022 and
2021 are as follows:
Long -Term Expected Real
Target
Rate of Return
Asset Class
Allocation
Range
2022 2021
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- Nonmaj or
General Projects Water water Funds Total
Leases
1,392,707
- $ - $ -
- $ 1,392,707
Accounts
331,982
17 890,665 6
53 1,222,723
Intergovernmental
403,148
- 345 10,997
2,907 417,397
Francise fees
58,752
- - -
- 58,752
Othertaxes
65,894
- -
65,894
Interest
25,827
- 23,660 -
- 49,497
Gross receivables
2,278,310
17 914,670 11,003
2,960 3,206,960
Less: allowance for
uncollectibles
(121,122)
- (2,879) -
- (124,001)
Net Total
Receivables $ 2,157,188 $ 17 $ 911,791 $ 11,003 $ 2,960 $ 3,082,959
Page 83 of 2340
52
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
D. Capital Assets
Capital assets activity for the fiscal year ended September 30, 2022, was as follows:
Beginning Ending
—Balance Additions Deductions Balance
Governmental Activities
Capital assets not being depreciated/amortized:
Land $ 634,017 S - $ 634,017
Construction -in -progress 4,536,072 18,750 (4,536,072) 18,750
Total Capital Assets Not Being Depreciated/Amortized 5,170,089 18,750 (4,536�072) 652,767
Capital assets being depreciated/amortized:
Buildings
Irripyoventents other than buildings
Infrastructure
Machinery and equipment
intangibles
Other K-9
Total Capital Assets Being Depreciated/Amortized
Less accumulated depreciation/ainortization for
8,004,908
6,688,744
14,693,652
2,509,454
-
2,509,454
5,223,601
42,114
5�265,715
4,654,716
342,917
4,997,633
274,455
-
(274,455) -
20,549
20,549
20,687,683
7,073,775
(274,455) 27,487,003
Buildings
(3,513,390)
(367,341)
(3,880,731)
Improvements other than buildings
(1,605,387)
(90,316)
(1,695,703)
infrastructure
(1,296,126)
(130,899)
(1,427,025)
Machinery and equipment
(3,314,753)
(443,705)
(3,758,458)
Intangibles
(263,826)
(10,629)
274,455
Other K-9
(10,275)
(2,936)
- (13,211).
Total Accumulated Depreciation/Amortization
(10,003,757)
(1,045,826)
274,455 (10,775,128)
Total Capital Assets Being Depreciated/Amortized, Net
10,683,926
6,027,949
- 16,711,875
Governmental Activities Capital Assets, Net
15,854,015
6,046,699
(4,536,072) S 17,364,642
Depreciation/amottization expense was charged to the functions/programs of the governmental
activities of the Village as follows:
Governmental Activities
General government S 125,024
Public safety 502,805
Transportation 185,486
Leisure services 232,511
Total Depreciation/Amortization Expense - Governmental Activities $ 1,045,826
Page 84 of 2340
53
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
Beginning Ending
Balance Additions Deductions Balance
Business -type Activities:
Capital assets not being depreciated/amortized:
Land S 83,335 $ S 83,335
Construction in progress 216,730 617,385 834,115
Total Capital Assets Not Being Depreciated/Amortized 300,065 617,385 917,450
Capital assets being depreciated/amortized:
Buildings
Improvements other than buildings
Infrastructure
Machinery and equipment
Intangibles
Leased machinery and equipment
Total capital assets being depreciated/arnortized
Less accumulated depreciation/amoitization for:
Buildings
Improvements other than buildings
Infrastructure
Machinery and equipment
Intangibles
Leased machinery and equipment
972,980
972,980
58,720
-
58,720
37,644,930
57,970
37,702,900
2,094,567
-
(23,273)
2,071,294
129,096
(80,447)
48,649
16,288
16,288
40,916,581
57,970
(103,720)
40,870,831
(748,724)
(15,211)
(763,935)
(34,058)
(2,349)
(36,407)
(20,391,542)
(712,183)
-
(21,103,725)
(1,785,762)
(87,261)
23,273
(1,849,750)
(121,058)
(8,038)
80,447
(48,649)
(1,629)
(3,257)
-
(4,886)
Total Accumulated Depreciation/Amortization (23,082,773) (828,299) 103,720 (23,807,352)
Total Capital Assets Being Depreciated/Amortized, Net 17,833,808 (770,329) - 17,063,479
Business -type Activity Capital Assets, Net S 18,133,873 S (152,944) S 17,980,929
Depreciation/amortization expense charged to the water and stormwater funds of the business -type
activities was $828,299. The depreciation/amortization expense breakdown by activity is as follows:
Water utility S 680,839
Stormwater 147,460
Total depreciation/amortization expence 828,299
Page 85 of 2340
54
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
E. Accrued Liabilities
Accrued liabilities reported by governmental funds at September 30, 2022, were as follows:
Salary and employee benefits
Other
Total Accrued Liabilities
F. Pension Obligations
Other Total
General Governmental Governmental
Fund Funds Funds
$ 332,304 $ 7,999 $ 340,303
11,648 - 11,648
$ 343,952 $ 7,999 $ 351,951
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/12ublications.
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.
Beneflts 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 86 of 2340
55
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
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 12 1. 10 1, 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, both employees and employers are required to contribute to
establish service credit for work performed in a regular established position. Effective July 1,2002,
the Florida Legislature established a unifon-n contribution rate system for the FRS, covering both
the Pension Plan and the Investment Plan.The uniform rates for fiscal year 2021-2022 are as
follows:
Page 87 of 2340
56
Agenda Item #3.
VILLAGE OF TEQUESTAq FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
Class
Employee
Employer (1)
Total
Regular
3%
9.10%
12.10%
Special Risk
3%
24.17%
27.17%
Special Risk Administrative Support
3%
36.04%
39.04%
Elected Officers'
Judges
3%
39.19%
42.19%
Governor, Lt.Govemor, Cabinet, Legistrators,
State Attorneys, Public Defenders
3%
62.01%
65.01%
Elected County, City Officers'
3%
49.07%
52.07%
Senior Management Service
3%
27.29%
30.29%
DROP participants
-
16.68%
16.68%
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 FRS Pension Plan totaled $13,668 for the fiscal year ended
September 30, 2022.
Pension Liabilities, Pension Expense, Deferred Outflows of Resources, and Deferred Inflows
of Resources
The total pension liability for the FRS was detertnined by the plan's actuary and reported in the
plan's GASB 67 valuation as of June 30, 2022, 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, 2022.
At September 30, 2022, the Village reported a liability of $152,863 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 contributions for the year ended June 30, 2022 relative to the
contributions made during the year ended June 30, 2021 of all participating members. At the June
30, 2022 Measurement Date, the Village's proportionate share was 0.000410833, which was a
decrease of 0.0009352% from its proportionate share measured as of June 30, 2021,
Page 88 of 2340
57
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
For the fiscal year ended September 30, 2022, 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) 7,260 $
Effect of assumptions changes or inputs 18,826
Changes in proportion and differences between
contributions and proportionate share of
contributions 9,648 (291,789)
Net differences between projected and actual
investment
earnings 10,094
Village Pension Plan contributions subsequent to
the measurement date 3,539
Total
$ 49,367 $ (291,789)
The deferred outflows of resources related to the Pension Plan contributions subsequent to the
measurement date, totaling $3,539 will be recognized as a reduction of the net pension liability in the
fiscal year ended September 30, 2023.
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
2023
$ (64,305)
2024
(62,273)
2025
(64,628)
2026
(32,793)
2027
(21,962)
$ (245,961)
Discount Rate
The discount rate used to measure the total pension liability was 6.70%. 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 6.70%
Long-term expected rate of return, net of investment expense 6.70%
Municipal bond rate N/A
Page 89 of 2340
58
Agenda Item #3.
VILLAGE OF TEQUESTAq FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
Actuarial Assumptions
The actuarial assumptions that determined the total pension liability as of June 30, 2022, were based on
the results of an actuarial experience study for the period July 1, 2013 — June 30, 2018.
Valuation Date July 1, 2022
Measurement date June 30, 2022
Inflation 2.40%
Salary increases including inflation 3.25%
Mortality PUB-20 10 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 6.70%, 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 (5.70%) or one percentage point
higher (7.70%) than the cuff ent rate.
1% Current I %
Decrease Discount Rate Increase
5.70% 6.70% 7.70%
Village's proportionate share of
net pension liability 264,366 152,863 59,633
Long -Term Expected Rate of Return
The long-term expected rate of return assumption of 6.70% on consists of two building block
components: 1) an inferred real (in excess of inflation) return of 4.20%, which is consistent with the
4.38% 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
2022 by the FRS Actuarial Assumption Conference. In the opinion of the FRS consulting actuary both
components and the overall 6.70% return assumption were determined to be reasonable and
appropriate per Actuarial Standards of Practice. The 6.70% reported investment return assumption
chosen by the 2022 FRS Actuarial Assumption Conference for funding policy purposes.
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.
Page 90 of 2340
59
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
Compound
Annual Annual
Target Arithmetic (Geometric) Standard
Asset Class Allocation Return Return Deviation
Cash
1.0%
2.6%
2.6%
1.1%
Fixed income
19.8%
4.4%
4.4%
3.2%
Global equity
54.0%
8.8%
7.3%
17.8%
Real estate
10.3%
7.4%
6.3%
15.7%
Private equity
11.1%
12.0%
8.9%
26.3%
Strategic investments
3.8%
6.2%
5.9%
7.8%
Assumed Inflation - Mean
2.4%
1.3%
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.
Payable's to the Pension Plan — At September 30, 2022 the Village reported zero payable in the
employer for outstanding contributions to the Pension Plan, both FRS and Retiree Health Insurance
Subsidy (HIS).
The Retiree Health Insurance Subsidy (HIS) Prograin
Plan Description — HIS Program is a cost -sharing multiple -employer defined benefit pension plan
established under Section 112.363, Florida Statutes. The Florida Legislature establishes and amends
the contribution requirements and benefit terms of the HIS Program. The benefit is a monthly
payment to assist 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.
Benefits Provided — For the fiscal year ended June 30, 2022, 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 S30 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, 2022, 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 $1,355 for the fiscal year ended September
30,2022.
Page 91 of 2340
60
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
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, 2022, HIS valuation is
the most recent valuation and was used to develop the liabilities for June 30, 2022. Liabilities
originally calculated as of the actuarial valuation date have been recalculated as of a later GAS13
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, 2022, the Village reported a liability of $30,542 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 contributions for the year ended June 30, 2022 relative to the contributions
made during the year ended June 30, 2021 of all participating members. At June 30, 2022, the
Village's proportionate share was 0.000288361%, which was a decrease of 0.0005857% from its
proportionate share measured as of June 30, 2021.
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, 2022, 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) S 927 S (134)
Effect of assumptions changes or inputs 1,751 (4,725)
Changes in proportion and differences between
contributions and proportionate share of contributions (78,542)
Net differences between projected and actual investment
earnings
M
Village Pension Plan contributions subsequent to
the measurement date 347
Total $ 3,069 S (83,40 D
The deferred outflows of resources related to the HIS Plan, totaling $347 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, 2023. 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:
Page 92 of 2340
61
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
Fiscal Year Ending
Amount
2023
$ (21,340)
2024
(16,670)
2025
(14,578)
2026
(12,264)
2027
(11,362)
Thereafter
(4,465)
$ (80,679)
Discount Rate
The discount rate used to measure the total pension liability was 3.54%. 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.
Discount rate 3.54%
Long-term expected rate of return, net of investment expense N/A
Bond Buyer General Obligation 20-Bond Municipal Bond Index 3.54%
Actuarial Assumptions
The actuarial assumptions that determined the total pension liability as of June 30, 2022, 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, 2022
Measurement date June 30, 2022
Inflation 2.40%
Salary increases including inflation 3.25%
Mortality Generational PUB-20 10 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
3.54%, as well as what the HIS's net pension liability would be if it were calculated using a discount
rate that is one percentage point lower (2.54%) or one percentage point higher (4.54%) than the
current rate.
I % Current 1%
Decrease Discount Rate Increase
2.54% 3.54% 4.54%
Village's proportionate share of
net pension liability $ 34,943 $ 30,542 $ 26,901
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.
Page 93 of 2340
62
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
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.
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, 2021:
FPTF PPTF GPTF
Number of-
Inactive members or beneficiaries currently receiving benefits 7 3 12
Inactive members entitled to but not yet receiving benefits 1 2 8
Active members 19 18 50
Total 27 23 70
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,
2021 measurement date were determined as of the beginning of the year, October 1, 2020 (based on
actuarial valuation results as reported in the October 1, 2020 actuarial valuation). Using a
measurement date of September 30, 2021 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, 2022.
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.
Page 94 of 2340
63
Agenda Item #3.
VILLAGE OF TEQUESTAq FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
FPTF PPTF GPTF
Actuarial Valuation Date Oct. 1, 2020
Measurement Date of the net pension liability Sep. 30, 2021
Village's Fiscal Year Ended Date for
Reporting Purposes Sep.30,2022
Pension Expense
Fiscal Year Ended September 30, 2022
(Based on Measurement Period Ended September 30, 2021)
FPTF
Service Cost
Interest on the Total Pension Liability
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
Oct. 1, 2020 Oct. 1, 2020
Sep.30,2021 Sep.30,2021
Sep.30,2022 Sep.30,2022
PPTF GPTF
$ 470,978 $
327,856 $
470,535
1,059,130
364,708
497,428
(104,656)
(75,796)
(171,792)
(930,408)
(438,639)
(473,599)
26,570
28,748
40,526
-
101,437
-
-
(101,437)
32,049
(92,810)
(47,335)
(412,726)
(178,658)
(253,230)
S 140,937
(64,591)
62,533
a
Page 95 of 2340
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
The defer -red outflow of resources, resulting from the Village's contributions to the Plans
subsequent to the measurement date of September 30, 2021 will be recognized as a reduction of the
Village's net pension liability in the fiscal year ended September 30, 2022.
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
$ 292,819 $ 148,661
263,460 315,877
1,397,365
523,573
1,079,852 S 1,861,903
Deferred Outflows Defer -red Inflows of
of Resources Resources
4,465 $ 238,027
36,574 77,617
643,755
203,707
244,746 $ 959,399
Deferred Outflows Deferred Inflows of
of Resources Resources
96,834 $ 402,470
183,842 90,070
814,115
350,247
$ 630,923 $ 1,306,655
Me
Page 96 of 2340
Agenda Item #3.
VILLAGE OF TEQUESTAq FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
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
2023
$ (322,878)
2024
(278,034)
2025
(338,333)
2026
(328,938)
2027
(7,162)
Thereafter
(30,279)
Total S (1,305,624)
Net Pension Liability (Asset)
1UGIMN
(183,894)
(180,778)
(220,590)
(204,585)
(40,347)
(88,166)
S (918,360)
GPTF
$ (240,406)
(220,336)
(286,934)
(245,272)
(33,031)
S (1,025,979)
Below is a summary of components of the net pension liability (asset), by Plan, which was
measured as of September 30, 2021 (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
2021 2021 2021
$ 15,707,456 $ 5,225,838 $ 7,609,284
16,221,717 7,621,215 8,878,840
$ (514,261) $ (2,395,377) $ (1,269,556)
103.27% 145.84% 116.68%
In accordance with GASB Statement No. 67, information as of September 30, 2022 has been
disclosed:
Fire
Police
General
Measurement Date September 30,
2022
2022
2022
Total Pension Liability
S 16,613,857
S 5,630,173
$ 8,500,338
Plan Net Position
13,745,648
6,643,342
7,742,454
Net Pension Liability (Asset)
2,868,209
$ (1,013,169)
$ 757,884
Plan Net Position as a % of Total
Pension Liability
82.74%
118.00%
91.08%
Page 97 of 2340
66
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
Below is a detail of the net changes in pension liability (asset):
FIREFIGHTERS'PENSION TRUST
CHANGES IN NET PENSION LIABILITY
Increase (Decrease)
Total Pension
Plan Fiduciary
Net Pension
Liability
Net Position
Liability
Balances at September 30, 2020
$ 14,767,838
$ 13,058,965
1,708,873
Changes for the year:
Service cost
470,978
-
470,978
Interest
1,059,130
1,059,130
Changes of benefit terms
-
-
Differences between expected
and actual experience
(50,743)
(50,743)
Changes in assumptions
(322,948)
-
(322,948)
Contributions - employer
-
410,585
(410,585)
Contributions - state
-
193,278
(193,278)
Contributions - employee
-
104,656
(104,656)
Net investment Income
-
2,697,602
(2,697,602)
'Benefit payments, including refunds
of employee contributions
(216,799)
(216,799)
-
Administrative expense
-
(26,570)
26,570
Net Changes
939,618
3,162,752
(2,223,134)
Balances at September 30, 2021
$ 15,707,456
16,221,717
(514,261)
Page 98 of 2340
67
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
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, 2020
$ 4,906,802
$ 6,171,161 $
(1,264,359)
Changes for the year:
Service cost
327,856
-
327,856
Tnterest
364,708
364,708
Changes of benefit terms
-
-
Differences between expected
and actual experience
(135,030)
(1-15,030)
Changes of assumptions
(87,966)
-
(87,966)
Contributions - employer
-
100,619
(100,619)
Contributions - employer (from state)
-
193,086
(193,086)
Contributions - members
-
75,796
(75,796)
Net investment income
-
1,259,833
(1,259,833)
Benefit payments, including refunds
of employee contributions
(49,095)
(49,095)
-
Administrative expense
(28,748)
28,748
Other
(101,437)
(101,437)
-
Net changes
319,036
1,450,054
(1,131,018)
Balances at September 30, 2021
$ 5,225,838
$ 7,621,215 $
(2,395,377)
Page 99 of 2340
68
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
GENERAL EMPLOYEES'PENSION TRUST
CHANGES IN NET PENSION LIABILITY
Balances at September 30, 2020
Changes for the year:
Service cost
Interest
Differences between expected
and actual experience
Changes of Assumptions
Contributions - employer and State
Contributions - member
Net investment income
Benefit payments, including refunds
of employee contributions
Administrative expense
Net changes
Balances at September 30, 2021
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability
Net Position
Liability
$ 7,280,856
$ 7,129,156 $
151,700
470,535
-
470,535
497,428
-
497,428
(332,590)
-
(332,590)
(109,651)
-
(109,651)
380,003
(380,003)
171,792
(171,792)
1,435,710
(1,435,710)
(197,294)
(197,294)
-
-
(40,527)
40,527
328,428
1,749,684
(1,421,256)
$ 7,609,284
$ 8,878,840 $
(1,269,556)
Sensitivity of the Net Pension Liability (Asset) to Changes in the Discount Rate
A single discount rate of 7.00% as of September 30, 2022, same as of September 30, 2021, 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, 2022 same as of September 30, 2021. 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 (6.5%) was
applied to all periods of projected benefit payments to determine the total pension liability.
Page 100 of 2340
69
Agenda Item #3.
VILLAGE OF TEQUESTAq FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
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 I -percentage -point lower or I -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, 2021
6.00%
7.00%
8.00%
Firefighters'
$ 1,317,358
$ (514,261)
$ (2,060,443)
Police Officers'
(1,752,614)
(2,395,377)
(2,925,012)
Current Single
Discount Rate
I %
Decrease
Assumption
Increase
Fiscal Year Ended September 30, 2021
5.50%
6.50%
7,50%
General Employees'
$ (243,276)
$ (1,269,556)
$ (2,124,635)
In accordance with GASB Statement No. 67,
information as of
September 30, 2022
has been
disclosed:
Current Single
1%
Discount Rate
1%
Decrease
Assumption
Increase
Fiscal Year Ended September 30, 2022
6.00%
7.00%
8.00%
Firefighters'
S 4,774,365
S 2,868,209
1,257,798
Police Officers'
(305,371)
(1,013,169)
(1,597,532)
Current Single
Discount Rate
1%
Decrease
Assumption
Increase
Fiscal Year Ended September 30, 2022
5.50%
6.50%
7.50%
General Employees' $ 1,903,784 $ 757,884 $ (190,798)
Village of Tequesta Public Safety Employees'Pension Plan (PSEPP)
Summary of Plan Provisions
A. Ordinances
The Plan was established under the Code of Ordinances for the Village of Tequesta, Florida,
Chapter 2, Article 111, Division 1, Section 2-61 (b), and was most recently amended under
Ordinance No. 02-19 , passed and adopted on March 14, 2019. The Plan is also governed by
certain provisions of Chapters 175 and 185, Florida Statutes, Part VII, Chapter 112, Florida
Page 10 1 of 2340
70
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
Statutes and the Internal Revenue Code.
B. Effective Date
Adopted March 14, 2019
C. Plan Year
October I 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.
Benefit - For police officers hired before February 1, 2013 and firefighters hired before August 14,
Page 102 of 2340
71
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
2015 (firqfighters.- 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
Forfirefighters hired be/bre August 14, 2015, Credited Service on or after September 1, 2015:
3.0% of AFC multiplied by years of Credited Service
For police qf
,ficers hired on or after February 1, 2013 andfirqfighters hired on or qfter August 14,
2015:
2.75% of AFC multiplied by all years of Credited Service
Normal Form ofBenefit - 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 oj*Benqfit - 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 103 of 2340
72
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
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 qf*Benqfit - 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 ofBenefit - 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.
N. Death in the Line of Duty
receiving pension benefits will be paid a
the member's Credited Service up to a
upon the later of the death of the retired
Eligibiliiy - 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 104 of 2340
73
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
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.
0. Other Pre -Retirement Death
Eligibilitv - 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 ofBenefit - 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
Eligibili�y - 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 105 of 2340
74
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
Normal Form ofBenefit - 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 S20 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. 5%t 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 half of the Chapter
185 reserve of $333,315 to reduce Required Employer Contribution. The remaining half of the
Chapter 185 reserve of $333,315 is alocated to a Share Paln for police officers.
Chapter 175 Premium Tax Revenue: The Village is permitted to use all annual Chapter 175
revenue as a credit toward the Required Employer Contribution and to apply the Chapter 175
reserve of $545,142 to reduce the Required Employer Contribution for the fiscal year ending
September 30, 2016 through September 30, 2018, as determined by Village.
V. Employer Contributions
Any additional amount determined by the actuary needed to fund the plan properly according to
State laws.
Page 106 of 2340
75
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
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.
Police officers must make a written election to participate in the DROP before the 27th year of
employment. Firefighters must make a written election to participate in the DROP within two years
of normal retirement eligibility.
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 - Police officers: The earlier of 5 years of participation in the DROP or 30
years of employment. Firefighters: 5 years.
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 qfBen�fiit - 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.
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, 2022.
Page 107 of 2340
76
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
FIREFIGHTERS'PENSION TRUST FUND
STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2022
Assets
Cash and cash equivalents
Investments
Equities
Fixed income
Real Estate Funds
Total investments
Contributions receivable
Accrued interest receivable
Prepaid items
Due from broker
Total Assets
Liabilities
Accounts payable
Total Liabilities
Deferred Inflows of Resourses
Deferred inflows
Total Deferred Inflows of Resourses
Net Position Restricted for
Pension Benefits
$ 185,583
8,449,900
2,908,722
1,891,597
13,250,219
208,464
17,753
26,634
161,791
13,850,444
12,141
12,141
92,655
92,655
$ 13,745,648
77
Page 108 of 2340
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
FIREFIGHTERS'PENSION TRUST FUND
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
Additions
Contributions:
State of Florida
Employer
Employee
Total Contributions
Investment earnings
Net appreciation in fair value of investment
Gain on sale of investments
interest and dividends
Total investment earnings
Less investment expenses
Net investment earnings
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
S 200,648
322,925
100,398
623,971
(2,804,721)
229,809
240,754
(2,334,158)
(41,678)
(2,375,836)
(1,751,865)
293,908
399,237
31,059
724,204
(2,476,069)
16,221,717
13,745,648
Page 109 of 2340
78
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
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, 2022.
POLICE OFFICERS'PENSION TRUST FUND
STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30,2022
Assets
Cash and cash equivalents
Investments
Equities
Fixed income
Real Estate Funds
Total investments
Contributions receivable
Accrued interest receivable
Prepaid items
Due from broker
Total Assets
Liabilities
Accounts payable
Total Liabilities
Net Position Restricted for
Pension Benefits
90,581
4,120,650
1,418,458
922,449
6,461,557
4,373
8,664
8,018
78,899
6,652,092
8,750
8,750
$ 6,643,342
Page 110 of 2340
79
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
POLICE OFFICERS'PENSION TRUST FUND
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
Additions
Contributions:
State of Forida
Employer
Employee
Total Contributions
Investment earnings
Net appreciation in fair value of investments
Gain on sale of investments
Interest and dividends
Total investment earnings
Less investment expenses
Net investment earnings
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
$ 92,947
110,759
84,799
288,505
(1,344,403)
107,785
114,618
(1,122,000)
(27,235)
(1,149,235)
(860,730)
64,802
15,915
36,426
117,143
(977,873)
7,621,215
$ 6,643,342
Page 111 of 2340
80
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
General Employees' Pension Plan
A. Ordinances
The Plan was established under the Code of Ordinances for the Village of Tequesta, Florida,
Chapter 2, Article 111, Division 1, Section 2-61 (a), and was most recently amended under Ordinance
No. 12-19. 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 I 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 period of contenious service 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 112 of 2340
81
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
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 qf'Benqflt - 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 ofBenefit - 10 Years Certain and Life thereafter.
COLA: None
Page 113 of 2340
82
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
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.
Alorinal Form oj'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.
Norinal Form qfBenefit - 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.
Norinal Form qfBenefit - 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 114 of 2340
83
Agenda Item #3.
VILLAGE OF TEQUESTAq FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
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.
Norinal Form oj'Benefit - 10 Years Certain and Life thereafter; other options are a] so available.
COLA: None
Members terminating employment with less than 6 years of Credited Service will receive a refund
of their own accurnulated 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.
Benejit - 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 115 of 2340
84
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
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, 2022.
GENERAL EMPLOYEES'PENSION TRUST FUND
STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2022
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
$ 279,505
4,538,813
1,834,628
1-068-096
-/,441,-)3-/
11,296
11,975
20,547
7,764,860
11,118
11,288
22,406
$ 7,742,454
Page 116 of 2340
85
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
GENERAL EMPLOYEES'PENSION TRUST FUND
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
Additions
Contributions:
Employer
Employee
Total Contributions
Investment earnings
Net appreciaton in fair value of investments
Gain on sale of investments
Interest and dividends
Total investment earnings
Less investment expenses
Net investment earnings
Miscellaneous
Total Additions
Deductions
Benefits paid
Refund of contributions
Administrative expenses
Total Deductions
Change in Net Position
Net Position Restricted for
Pension Benefits
Beginning of year
End of year
350,247
181,475
531,722
(1,552,500)
61,730
146,876
(1,343,894)
(46,988)
(1,390,882)
(859,160)
226,227
7,996
43,004
277,227
(1,136,387)
8,878,841
S 7,742,454
Page 117 of 2340
86
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
The following summarizes the pension related amounts for the pension plans as of the indicated
measurement date:
Deferred
Deferred
Pension
Measurement
Net Pension Net Pension
Outflow of
Inflow of
Expense
Date
Asset Liability
Resources
Resources
(Benefit)
General Employees'
Pension Trust Fund
9/30/21
1,269,556 $
630,923
$ 1,306,655
$ 62,533
Firefighters Pension Trust
Fund
9/30/21
514,261
1,079,852
1,861,903
140,937
Police Pension Trust Fund 9/30/21 2,395,377 - 244,746 959,399 (64,591)
FRS 6/30/21 152,863 49,367 291,789 21,466
HIS 6/30/21 30,542 3,069 83,401 1,580
Total $ 4,179,194 $ 183,405 $ 2,007,957 $ 4,503,147 $ 161,925
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 V illage 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, 2022 was $154,137.
There is a decrease in the value of the assets compare to the prior fiscal year due to the loan issued to
one of the plan participants. Employee contributions to the Plan for fiscal year ended September 30,
2022 were $12,927; the Village's contributions were $27,720.
Page 118 of 2340
87
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
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'.Wenibership Injbi-mation. The following table provides a summary of the number of
participants in the plan at the measurement date of September 3 0, 202 1:
Inactive members or beneficiaries currently receiving benefits
Inactive members entitled to but not yet receiving benefits
Active members
Total
6
0
92
M
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.
The OPEB expense recognize each fiscal year is equal to the change in the total OPEB liability from
the beginning of the year, not including the impact of the employer contributions, adjusted for deferred
recognition of the liability.
At September 30, 2022, the Village reported an OPEB liability of $913,400 that is based on an
Alternative Measurement Method calculation performed as of a valuation date of September 30, 2021
and measurement date of September 3 0, 202 1.
Page 119 of 2340
88
Agenda Item #3.
VILLAGE OF TEQUESTAq FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
For the fiscal year ended September 30, 2022, the Village recognized OPEB expense of $(466,127).
Total OPEB Liability - Beginning (September 30, 2020) $ 447,273
Service cost 63,270
Interest on the Total OPEB Liability 12,060
Changes in assumptions and other inputs 411,041
Benefit payments (20,244)
Net change in Total OPEB Liability 466,127
Total OPEB Liability - Ending (September 30, 2021) $ 913,400
In addition, the Village reported an deferred outflow of resources related to OPEB from the following
sourses:
Changes in assumptions and other inputs
Benefit payments after the measurement date
Total
Deferred Outflows Deferred Inflows of
of Resources Resources
$ 364,332
48,910
$ 413,242 $
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to
the OPEB will be recognized in future OPEB expenses as follows:
Fiscal Year En
2023
2024
2025
2026
2027
Thereafter
Amount
$ 46,709
46,709
46,709
46,709
46,709
130-797
$ 364,332
Actuarial methodv, assumptions and other input,�. The total OPEB liability was determined using
actuarial assumptions outlined below.
Valuation Date
Measurement Date
September 30, 2021
September 30, 2021
Actuarial Cost Method Entry age normal
Inflation 2.25%
Discount Rate 2.19%
Salaty Increase For participants in the General Employees Plan, 4.75%-5.50% per year, including
inflation. For participants in the Public Sfety Plan, 6.0% per year, including inflation.
Retirement Age Retirement rates used in the October 1, 2021 pension actuarial valuations of the General
and Public Safety employees.
Page 120 of 2340
89
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
Mortality Mortality rates are the same as used in the July 1,2021 acruarial valuation of the Florida
Retirement System. These rates were taken from adjusted Pub-2010 mortality tables
published by the SOA with generational mortality improvements using scale MP-2018.
Adjustments to reference tables are based on the results of a statewide experience study
covering the period 2013 through 2018.
Healthcare Cost Trend Based on the Getzen Model, with trends starting at 6.30% for 2022, 5.75% for 2023,
Rates and then gradually decreasing to an ultimate trend rate of 3.75%.
Aging factors Based on the 2013 SOA Study "Healt Care Cost - From Birth to Death".
Expenses Administrative expenses are included in the per capita health costs.
Other infornation
Notes The following assumption changes have been reflected in the Schedule of Changes in
the Total OPEB Liability for the measurement period ending September 3 0, 202 1:
- The discount rate was changed from 2.41% to 2.19%.
- The expected claims costs and premiums were updated to reflect recent information
provided for this valuation.
- The coverage acceptance assumption was updated to 20%.
- Demographic assumptions were updated based on those used in the respective October
1, 2021 actuarial valuations of the pension plans.
- Healthcare cost trend assumption was updated to reflect the Getzen forecasting model.
There were no benefit changes during the year.
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 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.
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 valuation, the municipal bond rate is 2.19% (based on the
daily rate closest to but not later than the measurement date of the "Fidelity 20-Year Municipal GO AA
Index". The discount rate was 2.41% 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 2.19%, 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.
Page 121 of 2340
90
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
Sensitivily of Total OPEB Liabilfty to the Discount Rate AssuMptio
Current Discount Rate
1% Decrease
1.19%
Assumption
2.19%
I % Increase
3.19%
Village's OPEB liability $984,408 $913,400 $848,306
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 that is one percent
lower or one percent higher.
Sensitivi1y of Total OPEB Liability to the Healthcare Cost Trend Rate AssuMption
Current Healthcare Cost
I% Decrease Trend Rate Assumption I% Increase
Village's OPEB liability $826,919 $913,400 $ 1,014,233
H. Construction and Other Commitments
The Village has active construction projects as of September 30, 2022, including fire rescue
vehicles and various water, stormwater projects. 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
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 - Stoimwater (variety of projects)
Total Business -type Activities
All commitments are financed from existing Village resources.
$ 1,907,912
1,907,912
$ 1,907,912
427,967
427,967
127,347
$ 555,314
Village uses encumbrance accounting and, therefore, construction and commitments noted above
represent outstanding encumbrances at September 30, 2022.
Page 122 of 2340
91
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
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 ]eased to Palm Beach County for 50 years for an annual rent of one dollar. In the event the
Village terminates the lease before the end of 50 years, the Village must reimburse Palm Beach
County a depreciated value using a useful life of 25 years based on an initial value of $405,000
calculated on a straight-line basis.
L Contracted Services — Re se and Recycling Collection
fiU
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 CRI published monthly by The Bureau of
Labor Statistics during the most recent previous twelve consecutive months period beginning on
April I and ending March 3 1.
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 always anticipate the areas in which potential claims may arise, it purchases commercial
insurance to protect against areas of possible exposure connected 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.
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
preinium or be required to pay additional premium base upon actual versus estimated payroll.
FMIT's final audit for fiscal year 2021/2022 resulted in a total refund to the Village of $8,062, due
to payroll alterations that impacted the workers' compensation premium.
Page 123 of 2340
92
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
K. Financed Purchases
Financed Purchase - Computer Equipment
The Village entered into a master agreement 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 1.67% and interest and principal
payments are due annually on February I 8th. This is a three (3) year contract with three (3)
payments maturing at February 18, 2024.
The following is the schedule of the of the future minimum payments at September 30, 2022:
Fiscal Year Ending September 30: Amount
2023 58,015
2024 58,015
Total minimum payments 116,030
Less amount representing interest (2,843)
Present Value of Future Minimum Payments 113,187
Financed Purchase - Police Fleet
The Village entered into agreement 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 contract with sixty (60) payments.
The following is the schedule of the of the future minimum payments at September 30, 2022:
Fiscal Year Ending September 30:
Amount
2023
53,785
2024
53,785
2025
56,251
2026
27,815
Total minimum payments
191,636
Less amount representing interest
(15,745)
Present Value of Future Minimum Payments
175,891
Financed Purchase —Police Tasers
The Village entered into a 60-month agreement with Axon Enterprise, Inc. in the amount of
$3 1, 100 with funding on September 18, 2018 for the financing of twenty (20) tasers. It is paid off at
fiscal year ending 9/30/2022.
Financed Purchase - Fire Pumper
The Village entered into agreement 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 I Ith. This is a nine (9) year contract
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.
Page 124 of 2340
93
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
The following is a new schedule of the future minimum payments at September 30, 2022:
Fiscal Year Ending September 30: Amount
2023 48,794
Total minimum payments 48,794
Less amount representing interest (1,394)
Present Value of Future Minimum Payments $ 47,400
L. Long -Term Liabilities
Promissory Notes
The Village issues long-term debt to provide funds for the acquisition and construction of major capital
facilities. Promissory notes have been signed for both governmental and business -type activities. These
notes mature in 6 to 17 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 $6,693,000
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
$2,344,386 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, 2022 are as follows:
Signed Original Interest Final Outstanding
Promissory Notes Payable Date Borrowing Rate Maturity 9/30/2022
Government Activities
Capital Improvements/Rec. Building 1/21/2021 $ 6,890,000
Total Government Activities
Business -type Activities
Public Improvement (Refunding) 7/14/2008 6,554,935
Total Business -type Activities
2.18% 10/01/2040 $ 6,693,000
$ 6,693,000
3.69% 3/l/2028 _$ 2,344,386
$ 2,344,386
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, 2022 was $1,273,804,833. As of September 30,
2022 the Village did not exceed the debt limit of $127,380,483.
Page 125 of 2340
94
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
Changes in Long -Term Liabilities
Changes in the Village's long-term liabilities for the fiscal year ended September 30,
2022 are as
follows:
Governmental Activities
Beginning
Ending
Due Within
Balance Additions Deletions
Balance
One Year
Governmental Activities
Note Payable - 2021
S 6,890,000 S - S 197,000
S 6,693,000
S 288,000
Note Payable - 2002
364,007 - 364,007
-
-
Financed purchases
493,543 - 157,065
336,478
152,720
Compensated absences
791,398 143,534 160,562
774,369
112,085
Total Governmental Activities
$ 8,538,948 143,534 $ 878,634
7,803,847
552,805
For governmental activities, the liability for compensated absences and pension liabilities are liquidated
by the general fund.
Business-tvve Activities
Beginning
Ending
Due Within
Balance Additions Deletions
Balance
One Year
Business -type Activities
Note Payable (2008)
$ 2,721,115 376,729
2,344,386
391,822
Compensated absences
144,219 18,406 18,723
143,902
15,000
Total Business -type Activities
2,865,334 18,406 395,452
2,488,288
S 406,822
The debt service requirements for the Village's notes are as follows:
Governmental Activities
Fiscal Year Ending
September 30:
2023
'1024
2025
2026
2027
2028-2041
Total
Business -type Activities
Fiscal Year Ending
September 30:
2023
2024
2025
2026
2027
2028
Total
Promissory Notes
Principal
Interest
Total
S 288,000 S
142,768 S
430,768
294,000
136,424
430,424
301,000
129,939
430,939
307,000
123,312
430,312
314,000
116,543
430,543
5,189,000
831,485
6,020,485
6,693,000 $
1,480,471 $
8,173,471
Promissory Notes
Principal
Interest
Total
S 391,822
79,732
$ 471,554
406,556
64,977
471,533
420,915
49,309
470,224
437,238
33,273
470,511
455,564
16,563
472,127
232,291
1,819
234,110
S 2,344,386 S
245,673
2,590,059
Page 126 of 2340
95
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
Total Primary Government Debt
Fiscal Year Ending
September 30:
2023
2024
2025
2026
2027
2028-2041
Total
M. Fund Balance
Total Primary Government Debt
Principal
Interest
Total
$ 679,822 $
222,501 $
902,323
700,556
201,401
901,957
721,915
179,248
901,163
744,238
156,585
900,823
769,564
133,106
902,670
5,421,291
833,304
6,254,595
S 9,037,386 $
1,726,145 $
10,763,531
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, 2022 the unassigned fund balance of the general fund was 29.97% and is above
the minimum target level. It is a 2.73% decrease compared to the prior fiscal year.
N. Interfund Transf�rs
The composition of interfund transfers for the fiscal year ended September 30, 2022 is as follows:
lnte�fund Tran�fers
Capital Stormwater
Improvement Fund Fund Total
Transfers Out (1) (2)
General Fund S 806,231 $ 188,565 S 994,796
Total Interfund Transfers 806,231 $ 188,565 994,796
(1) Transfer is to restrict infrastructure and utility tax to fund capital projects and improvements
(2) Transfer of ARPA funds for qualified infrastructure projects and improvements.
Page 127 of 2340
96
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
0. Joint Ventures
The Village, in conjunction with six other municipalities, organized a consortium to provide mutual
fire and emergency aid. The consortium is known as the Northern Area Mutual Aid Consortium
(NAMAC). During 1999, the consortium purchased equipment and supplies as well as collected
contributions. The consortium does not issue separate financial statements. The Village has not
been obligated to contribute any funds to the consortium since its inception in 1999.
P. Change in Accounting Principles — Adjustment to Beginning Fund Balance and Net Position
The Village implemented GAS13 Statement No.87, Leases for FYE September 30, 2022. The
implementation of GASB Statement No. 87 required recognition of certain lease assets and
liabilities for leases that previously were classified as operating leases and recognized as inflows of
resources or outflows of resources based on the payment provisions of the contract. It establishes a
single model for lease accounting based on the foundational principle that leases are financings of
the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease
liability and an intangible right -to -use lease asset, and a lessor is required to recognize a lease
receivable and a deferred inflow of resources.
A detail of the adjustment to the beginning fund balance defined in GASB Statement No. 87 is
shown below:
Governmental activities
Governmental
GASB No.87 General Activities
adjustments Fund Balance Net Position_
Beginning balance S 6,206,380 $ 17,760,694
To record lease receivable $ 1,593,135
To record deferred inflow of resources (1,415,703)
Accrued interest lease receivable 2,450
Adjustment to beginning balance 179,882
Ending balance (restated)
Business -type activities
$ 6,386,262 $ 17,940,576
The implementation of GASB Statement No.87 did not impact business -type activities net position
or results of operations.
Page 128 of 2340
97
Agenda Item #3.
REQUIRED SUPPLEMENTARY INFORMATION
Page 129 of 2340
Agenda Item #3.
VILLAGE OF TEQUESTA, FLORIDA
REQUIRED SUPPLEMENTARY INFORINIATION
BUDGETARY COMPARISON SCHEDULE
GENERALFUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
Variance
with Filial
Budget
Budgeted Amounts
Actual
Positive
Original
Final -Amounts
(Negative)
Revenues
Ad valorem taxes
$ 8,158,070 S
8,211,040 $
8,260,937 $
49,897
Othertaxes
1,910,660
2,001,660
2,170,196
168,536
Charges for services
1,507,260
1,535,350
1,648,315
112,965
Intergovernmental
907,320
907,320
1,062,117
154,797
Tritragoverrimental
856,310
856,310
856,342
32
Licenses and permits
1,000
1,000
8,350
7,350
Franchise fees
462,000
462,000
530,165
68,165
Rents and royalties
255,190
255,190
231,443
(23,747)
Miscellaneous
13,730
13,730
16,534
2,804
Fines and forfeitures
18,500
18,500
15,023
(3,477)
Grants, contributions and donations
34,400
t,223,772
1,643,406
419,634
Investment earnings
8,300
8,300
51,163
42,863
Total Revenues
14,132,740
15,494,172
16,493,991
999,819
Expenditures
Council
77,350
77,350
68,481
8,869
Manager
306,720
306,720
310,343
(3,623)
Human resources
385,040
385,040
375,353
9,687
Clerk
373,940
373,940
333,203
40,737
Finance
715,220
715,220
693,756
21,464
Legal
190,000
190,000
166,842
23,158
Comprehensive planning
281,540
307,540
288,514
19,026
General government
314,310
280,310
230,734
49,576
Information technology
476,650
476,650
437,880
38,770
Police
3,313,760
3,351,317
3,356,877
(5,560)
Code enforcement
124,480
124,480
108,682
15,798
Fire
4,116,145
4,268,790
4,137,198
131,592
Public works
1,539,415
1,539,415
1,391,122
148,293
Parks and recreation
942,080
976,080
820,522
155,558
Capital outlay
308,260
2,229,558
270,273
1,959,285
Debt service:
Principal
719,520
719,520
718,072
1,448
Interest
166,760
166,760
166,698
62
Total Expenditures
14,351,190
16,488,690
13,874,550
2,614,140
Excess (Deficiency) of Revenues
Over Expenditures
(218,450)
(994,518)
2,619,441
3,613,959
Other Financing Sources (Uses)
Transfers out
(827,260)
(865,8251)
(994,796)
(128,971)
Proceeds on sale of capital assets
-
972
972
Issuance of debt
1,865,588
-
(1,865,588)_
Total Other Financing Sources (Uses)
(827,260)
999,763
(993,824)
(1,993,587)
Net Change in Fund Balance
(1,045,710)
5,245
1,625,617
1,620,372
Fund Balance - Beginning (restated)
6,386,262
6,386,262
6,386,262
-
Fund Balance - Ending
$ 5,340,552 $
6,391,507
8,011,879 $
1,620,372
98 See note to budgetary comparison sR@g&. 130 of 2340
Agenda Item #3.
VILLAGE OF TEQUESTA9 FLORIDA
NOTE TO THE BUDGETARY COMPARISON SCHEDULE
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022
Note I — 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 or�ginal budget is the budget in place at the start of the fiscal year, which includes all of
the following:
The budget passed by the Village Council
+Subsequent amendments made pji�or to the start of the fiscal year
+Cql!yovers from the previous year (encumbrances)
=Original budget
The final hudge includes all ad ustments to the budget applicable to the fiscal year, even if
i
they take place after the close of the fiscal year.
During the year, total supplemental appropriations of $2,176,065 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 131 of 2340
99
Agenda Item #3.
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Page 132 of 2340
Agenda Item #3.
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
$ (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
603,863
-
1,744,261
34.62%
2022
523,574
523,574
-
1,673,296
31.29%
* Excludes prepaid
Employer contribution.
Notes to Schedule
Valuation Date
10/01/2020
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
The same version of PUB-2010 Headcount -Weighted Mortality
Table as used by the Florida Retirement System (FRS) for Special Risk
Class members in their July 1, 2019 actuarial valuation (with mortality
improvements projected for healthy lives to all future years after 2010
using Scale MP-2018). Florida Statutes Chapter 112.63(1)(f) mandates
the use of mortality tables from one of the most recently publiched FRS
actuarial valuation reports.
Other Information:
Notes
See discussion of valuation results in the October 1, 2020 Actuarial
Valuation report, dated February 5, 2021
This schedule is presented as required, however, until a full 10-year trend is compiled, information is
presented for those years available.
Page 133 of 2340
101
Agenda Item #3.
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF INVESTMENT RETURNS
FIREFIGHTERS' PENSION TRUST FUND
Fiscal Year Ended September 30, 2022 2021 2020 2019 2018 2017 2016 2015 2014
Annual money -weighted rate of return, net of
investment expenses (15.03)% 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 134 of 2340
102
Agenda Item #3.
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Page 135 of 2340
Agenda Item #3.
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%
2022
320,362
320,362
- 1,470,899
21.78%
Notes to Schedule
Valuation Date
10/01/2020
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 136 of 2340
104
Agenda Item #3.
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF INVESTMENT RETURNS
POLICE OFFICERS' PENSION TRUST FUND
Fiscal Year Ended September 30, 2022 2021 2020 2019 2018 2017 2016 2015 2014
Annual money -weighted rate of return, net of
investment expenses (15.03)% 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 2340
105
Agenda Item #3.
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Page 138 of 2340
Agenda Item #3.
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
362,948
-
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%
2022
350,247
350,247
-
3,629,500
9.65%
Notes to Schedule
Valuation Date
10/01/2020
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
2.2 5 %
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
The same version of PUB-2010 Headcount -Weighted Mortality Table as
used by the Florida Retirement System (FRS) for Special Risk Class
members in their July 1, 2020 actuarial valuation (with mortality
improvements projected for healthy lives to all future years after 2010
using Scale MP-2018). Florida Statutes Chapter 112.63(1)(f) mandates
the use of mortality tables from one of the most recently published FRS
actuarial valuation reports.
Other information:
Notes
See discussion of valuation results from the October 1, 2020 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 139 of 2340
107
Agenda Item #3.
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF INVESTMENT RETURNS
GENERAL EMPLOYEES' PENSION TRUST FUND
Fiscal Year Ended September 30,
2022 2021
2020
2019
2018 2017 2016
2015 2014
Annual money -weighted rate of return, net of
investment expenses
(15.89)% 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 wich information is available.
Page 140 of 2340
108
Agenda Item #3.
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 -Employee Payroll
Notes to Schedule
2021 2020 2019 2018 2017
$ 63,270 S
57,961 S
50,439 $
51,371 $
53,040
12,060
12,064
25,960
22,929
19,739
-
-
(309,165)
-
-
411,041
6,038
12,964
(13,500)
(14,020)
(20,244)
(19,040)
(34,636)
(39,712)
(37,725)
466,127
57,023
(254,438)
21,088
21,034
447,273
390,250
644,688
623,600
602,566
$ 913,400 $
447,273 $
390,250 $
644,688 $
623,600
$ 7,825,935 $ 7,597,995 $ 7,284,363 $ 6,694,984 $ 5,708,842
11.67% 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 2.19% from 2.41%. Inflation is 2.25%.
There are no plan assets accumulated in the trust fund that meets the criteria of GASB Statement No. 75
to pay related benefits.
The following is a select health cost trends:
FY Beginning
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
Ultimate health cost trend
Salary increases
6.30%
5.75%
5.60%
5.42%
5.24%
5.07%
4.89%
4.71 %
4.53%
4.14%
3.75%
General Employees plan participants 4.75%-5.50%;
Public Safety - 6% per year, including inflation.
The Village of Tequesta implemented GASB Statement No.75 in fiscal year ending 9/30/2018 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 141 of 2340
109
Agenda Item #3.
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
FLORIDA RETIREMENT SYSTEM (FRS)
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
Fiscal Year Ended June 30,
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
Proportion of the net pension liability
0.00041%
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
$ 152,863
$ 101,680
$ 717,034
$ 543,212
$ 501,303
$ 561,097
$ 572,594
$ 287,876
$ 177,517
$ 683,841
Covered payroll
$ 105,084
$ 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
145.47%
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 82.89% 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.
Page 142 of 2340
110
Agenda Item #3.
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,
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
Proportion of the net pension liability
0.00029%
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
$ 30,542
$ 107,220
$ 109,870
$ 104,854
$ 119,802
$ 129,440
$ 186,087
$ 171,031
$ 200,044
$ 214,766
Covered payroll
$ 105,084
$ 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
29.06%
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 4.81% 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.
Page 143 of 2340
111
Agenda Item #3.
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
FLORIDA RETIREMENT SYSTEM (FRS)
SCHEDULE OF VILLAGE CONTRIBUTIONS
Fiscal Year Ended September 30,
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
Contractually required contribution
$ 13,668
$ 44,150
$ 58,313
$ 52,059
$ 48,540
$ 47,988
$ 62,966
$ 43,642
$ 58,404
$ 72,698
Contributions in relation to the
conractually required contribution
(13,668)
(44,150)
(58,313)
(52,059)
(48,540)
(47,988)
(62,966)
(43,642)
(58,404)
(72,698)
Contribution deficiency (excess)
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
Covered payroll
$ 81,619
$ 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
16.75%
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.
Page 144 of 2340
112
Agenda Item #3.
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
HEALTH INSURANCE SUBSIDY PROGRAM (HIS)
SCHEDULE OF VILLAGE CONTRIBUTIONS
Fiscal Year Ended September 30, 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Contractually required contribution $ 1,355 $ 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 (1,355) (4,602) (3,876) (4,348) (6,024) (6,356) (7,488) (5,381) (6,832) (8,204)
Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Covered payroll
$ 81,619 $ 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% 1.66% 1.11%
1.20%
1.26%
The information in this schedule detennined as of the Village's most recent fiscal year.
Page 145 of 2340
113
Agenda Item #3.
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
Page 146 of 2340
Agenda Item #3.
NONMAJOR GOVERNMENTAL FUNDS
Page 147 of 2340
Agenda Item #3.
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 148 of 2340
Agenda Item #3.
VILLAGE OF TEQUESTA, FLORIDA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2022
Capital
Special
Revenue
Projects
Total
Special Law
Capital
Nonmajor
Building
Enforcement
Improvement
Governmental
Fund
Fund
Fund
Funds
Assets
Cash
$ 890,390
$ 131,698
$ 912,598
$ 1,934,686
Receivables, net
23
6
13
42
Inventories
282
-
-
282
Prepaid items
10,021
8,541
-
18,562
Total Assets
$ 900,716
$ 140,245
$ 912,611
$ 1,953,572
Liabilities and Fund Balances
Liabilities
Accounts payable
14,866
6,723
-
21,589
Accrued liabilities
7,999
-
-
7,999
Due to other governments
5,321
-
-
5,321
Total Liabilities
28,186
6,723
-
34,909
Fund Balances
Nonspendable:
Inventories
282
-
-
282
Prepaid Items
10,021
8,541
-
18,562
Restricted for:
Infrastructure
-
-
568,199
568,199
Building
832,828
-
-
832,828
Law Enforcement
-
80,795
-
80,795
Capital Projects
-
-
312,722
312,722
Assigned to:
Capital Projects
-
-
31,690
31,690
Subsequent years budget
29,399
44,186
-
73,585
Total Fund Balances
872,530
133,522
912,611
1,918,663
Total Liabilities and Fund Balances
$ 900,716
$ 140,245
$ 912,611
$ 1,953,572
Page 149 of 2340
114
Agenda Item #3.
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONNIAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
Special Revenue
Capital Projects
Total
Special Law
Capital
Nonmajor
Building Enforcement
Improvement
Governmental
Fund Fund
Fund
Funds
Revenues
Charges for services $ 5,546 $ - $ - $ 5,546
Licenses and permits 751,857 - - 751,857
Miscellaneous 55 - - 55
Fines and forfeitures - 94,055 - 94,055
Investment earnings 5,075 761 102 5,938
Total Revenues 762,533 94,816 102 857,451
Expenditures
Current:
Public safety
766,390
45,690
-
812,080
Transportation
-
-
186,149
186,149
Capital outlay
-
72,645
60,864
133,509
Total Expenditures
766,390
118,335
247,013
1,131,738
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(3,857)
(23,519)
(246,911)
(274,287)
Other Financing Sources (Uses)
Transfers in
-
-
806,231
806,231
Total Other Financing Sources (Uses)
-
-
806,231
806,231
Net Change in Fund Balances
(3,857)
(23,519)
559,320
531,944
Fund Balances - Beginning of Year
876,387
157,041
353,291
1,386,719
Fund Balances - End of Year S
872,530 $
133,522 $
912,611 $
1,918,663
Page 150 of 2340
115
Agenda Item #3.
VILLAGE OF TEQUESTA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
BUILDING FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
Revenues
Charges for services
Licenses and permits
Miscellaneous
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)
$ - $
- $
5,546 $
5,546
503,000
703,000
751,857
48,857
-
-
55
55
1,400
1,400
5,075
3,675
504,400
704,400
762,533
58,133
676,260
746,260
766,390
(20,130)
-
40,000
-
40,000
676,260
786,260
766,390
19,870
(171,860)
(81,860)
(3,857)
78,003
876,387
876,387
876,387
-
$ 704,527 $
794,527 $
872,530 $
78,003
Page 151 of 2340
116
Agenda Item #3.
VILLAGE OF TEQUESTA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
SPECIAL LAW ENFORCEMENT TRUST FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
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)
$ - $
44,202 $
94,055 $
49,853
-
-
761
761
-
44,202
94,816
50,614
32,920
62,170
45,690
16,480
42,000
131,702
72,645
59,057
74,920
193,872
118,335
75,537
(74,920)
(149,670)
(23,519)
126,151
157,041
157,041
157,041
-
$ 82,121 $
7,371 $
133,522 $
126,151
Page 152 of 2340
117
Agenda Item #3.
VILLAGE OF TEQUESTA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
CAPITAL IMPROVEMENT FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
Revenues
Investment earnings
Total Revenues
Expenditures
Transportation
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)
$ 1,000 $
1,000 $
102 $
(898)
1,000
1,000
102
(898)
-
340,940
186,149
154,691
419,590
78,750
60,864
17,886
419,590
419,590
247,013
172,577
(418,590)
(418,590)
(246,911)
171,679
677,260
677,260
806,231
128,971
(87,000)
(117,585)
-
117,585
590,260
559,675
806,231
246,556
171,670
141,085
559,320
418,235
353,291
353,291
353,291
-
$ 524,961 $
494,376 $
912,611 $
418,235
Page 153 of 2340
118
Agenda Item #3.
VILLAGE OF TEQUESTA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
CAPITAL PROJECTS FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
Variance
with Final
Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Revenues
Investment earnings
$ 500
$ 500
$ 1,087
$ 587
Total Revenues
500
500
1,087
587
Expenditures
Public works
255,000
255,000
255,000
-
Parks and recreation
-
-
7,132
(7,132)
Capital outlay
87,000
2,476,223
2,152,671
323,552
Total Expenditures
342,000
2,731,223
2,414,803
316,420
(Deficiency) of Revenues
Under Expenditures
(341,500)
(2,730,723)
(2,413,716)
317,007
Other Financing Sources
Transfers in
87,000
117,585
-
(117,585)
Total Other Financing Sources
87,000
117,585
-
(117,585)
Net Change in Fund Balance
(254,500)
(2,613,138)
(2,413,716)
199,422
Fund Balance - Beginning
2,550,094
2,550,094
2,550,094
-
Fund Balance - Ending
$ 2,295,594
$ (63,044)
$ 136,378
$ 199,422
Page 154 of 2340
119
Agenda Item #3.
FIDUCIARY FUNDS
Page 155 of 2340
Agenda Item #3.
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 156 of 2340
Agenda Item #3.
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF FIDUCIARY NET POSITION
Assets
Cash and cash equivalents
Investments
Equities
Fixed Income
Real Estate Fund
Total investments
Contributions receivable
Accrued interest receivable
Prepaid items
Due from broker
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, 2022
Police
General
Firefighters' Officers'
Employees'
Pension Pension
Pension
Trust Fund Trust Fund
Trust Fund Total
$ 185,583 $ 90,581 $ 279,505 $ 555,669
8,449,900
4,120,650
4,538,813
17,109,363
2,908,722
1,418,458
1,834,628
6,161,808
1,891,597
922,449
1,068,096
3,882,142
13,250,219
6,461,557
7,441,537
27,153,313
208,464
4,373
11,296 224,133
17,753
8,664
11,975 38,392
26,634
8,018
20,547 55,199
161,791
78,899
- 240,690
13,850,444 6,652,092 7,764,860 28,267,396
12,141 8,750 11,118 32,009
- - 11,288 11,288
12,141 8,750 22,406 43,297
92,655 - - 92,655
92,655 - - 92,655
$ 13,745,648 $ 6,643,342 $ 7,742,454 $ 28,131,444
Page 157 of 2340
120
Agenda Item #3.
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
Additions
Contributions:
State of Florida
Employer
Employee
Total Contributions
Investment Earnings
Net appreciation in fair value of
investments
Gain on sale of investments
Interest and dividends
Total investment earnings
Less investment expenses
Net Investment earnings
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
$ 200,648 $ 92,947 $ - $ 293,595
322,925 110,759 350,247 783,931
100,398 84,799 181,475 366,672
623,971 288,505 531,722 1,444,198
(2,804,721)
(1,344,403)
(1,552,500)
(5,701,624)
229,809
107,785
61,730
399,324
240,754
114,618
146,876
502,248
(2,334,158)
(1,122,000)
(1,343,894)
(4,800,052)
(41,678)
(27,235)
(46,988)
(115,901)
(2,375,836)
(1,149,235)
(1,390,882)
(4,915,953)
(1,751,865)
(860,730)
(859,160)
(3,471,755)
293,908
64,802
226,227
584,937
399,237
15,915
7,996
423,148
31,059
36,426
43,004
110,489
724,204 117,143 277,227 1,118,574
(2,476,069) (977,873) (1,136,387) (4,590,329)
16,221,717 7,621,215 8,878,841 32,721,773
$ 13,745,648 $ 6,643,342 $ 7,742,454 $ 28,131,444
Page 158 of 2340
121
Agenda Item #3.
STATISTICAL SECTION
Page 159 of 2340
Agenda Item #3.
STATISTICAL SECTION
This part of the Village of Tequesta's Comprehensive Annual Financial Report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information says about the Village's overall financial
health.
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand how the Village's
financial performance and well-being have changed over time. 122
Revenue Capacity
These schedules contain information to help the reader assess the Village's most significant
local revenue source, the property tax. 127
Debt Capacity
These schedules present information to help the reader assess the affordability of the
Village's current levels of outstanding debt and the Town's ability to issue additional debt
in the future. 131
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand
the environment within which the Village's financial activities take place. 135
Operating Information
These schedules contain service and infrastructure data to help the reader understand how
the information in the Village's financial report relates to the services the Village provides
and the activities it performs. 137
Sources: Unless otherwise noted, the information in these schedules is derived from the
Comprehensive Annual Financial Reports for the relevant year.
Page 160 of 2340
Agenda Item #3.
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Page 174 of 2340
Agenda Item #3.
VILLAGE OF TEQUESTA, FLORIDA
PRINCIPAL EMPLOYERS - PALM BEACH COUNTY
CURRENT YEAR AND NINE YEARS AGO
2022 2013
Percentage of
Percentage of
Total County
Total County
Employer (seivice providing)
Employees
Rank
Employment
Employees
Rank
Employment
Palm Beach County School District
22,426
1
N/A
20,810
1
N/A
Palm Beach County Board of County Commissioners
5,753
2
N/A
11,000
2
N/A
Tenet Coastal Division Palm Beach County
5,734
3
N/A
6,100
3
N/A
NextEra Energy, Inc. (Hdgtrs) / Florida Power & Light
5,330
4
N/A
3,804
4
N/A
Florida Atlantic University
5,059
5
N/A
2,980
6
N/A
Boca Raton Regional Hospital
3,135
6
N/A
2,250
10
N/A
Veterans Health Administration
2,600
7
N/A
2,700
8
N/A
Hospital Corporation of America (HCA)
2,419
8
N/A
2,714
7
N/A
The Breakers
2,300
9
N/A
Baptist Health South Florida (prev. Bethesda Hospital)
2,282
10
N/A
2,643
9
N/A
G4S (Wackenhut Corporation)
3,000
5
N/A
57,038 N/A 58,001 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 175 of 2340
136
Agenda Item #3.
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Page 176 of 2340
Agenda Item #3.
VILLAGE OF TEQUESTA, FLORIDA
OPERATING INDICATORS BY FUNCTION/PROGRANI
LAST TEN FISCAL YEARS
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Governmental Activities
General government
Registered voters
4,854
4,702
4,634
4,813
4,017
4,951
5,056
5,204
4,971
4,960
Public safety:
No. of full-time certified police officers
18
20
19
18
19
19
19
19
20
21
No. of calls received
3,571
3,548
3,853
3,109
3,442
3,443
3,614
3,571
2,375
2,735
No. of arrests
136
168
174
94
108
69
61
46
40
43
No. of parking violations
329
120
207
61
39
20
48
48
34
-
No. of incident numbers issued
691
725
552
345
312
254
259
181
280
434
Fire department:
No. of full-time certified firefighters
21
18
22
22
22
22
21
21
21
22
No. of emergency responses
1,372
1,197
1,291
1,409
1,286
1,227
1,168
1,226
1,186
1,174
No. of transports
675
693
1,006
817
722
724
721
1,017
684
941
No. of fires extinguisbed/alarms
697
504
285
254
309
267
206
323
263
164
No. of inspections
539
713
499
654
742
608
767
405
558
648
Building, zoning:
No. of building permits issued
914
929
1,034
1,583
1,755
1,356
1,226
1,198
1,412
1,522
No. of building inspections conducted
2,176
2,201
1,705
2,472
3,017
2,634
2,649
2,611
2,429
3,857
Leisure services:
No. of Spring Classes
10
8
8
12
10
10
10
7
4
14
No. of Summer Classes
4
4
4
4
4
4
4
-
1
18
No. of Movies
3
4
3
3
3
3
2
-
-
1
Business -type Activities
Water:
No. of customers
5,037
5,039
5,038
5,055
5,042
5,087
5,084
5,070
5,070
5,087
Average daily consumption
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 2.626 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 177 of 2340
138
Agenda Item #3.
VILLAGE OF TEQUESTA, FLORIDA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Function/Program
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
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
10
11
10
12
10
12
11
11
12
13
Fire:
No. of stations
1
1
1
1
1
1
1
2
1
1
No. of ambulances
3
3
2
2
2
2
2
2
2
2
No. of pumpers
3
3
3
3
2
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
6*
6
6
7
7
7
7
7
6
No. of park acreage
54
62 *
62
62
62
62
62
62
62
60
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
73
73
73
77
77
77
77
72
74
74
No. of fire hydrants
433
409
430
456
435
435
435
579
580
580
2,750
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 178 of 2340
139
Agenda Item #3.
REPORTING SECTION
Page 179 of 2340
Agenda Item #3.
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
GO VERNMENT A UDITING STANDARDS
To the Honorable Mayor, Village Council
and Village Manager
Village of Tequesta, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States, the financial statements of the governmental activities, the business -
type activities, each major fund, and the aggregate remaining fund information of the Village of Tequesta,
Florida (the "Village"), as of and for the year ended September 30, 2022, and the related notes to the financial
statements, which collectively comprise the Village's basic financial statements and have issued our report
thereon dated March 8, 2023.
Report on 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 or significant deficiencies
may exist that were not 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 180 Of 2340
Agenda Item #3.
Report on 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 8, 2023
qa,aZC6�, , 0��e
Page 181 of 2340
141
Agenda Item #3.
AULDIN
& ENKINS
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
Opinion on 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, 2022. 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.
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 on each of its major federal programs for the year ended
September 30, 2022.
Basis for Opinion on Each Major Federal Program
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). Our responsibilities under those standards and the Uniform Guidance are further described in
the Auditor's Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the Village and to meet our other ethical responsibilities, in accordance with
relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not
provide a legal determination of Village's compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of laws,
statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the Village's federal
programs.
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 182 Of 2340
Agenda Item #3.
Auditor's Responsibilities for the Audit on Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance
requirements referred to above occurred, whether due to fraud or error, and express an opinion on the Village's
compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and
therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards,
Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it
exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control. Noncompliance with the compliance requirements referred to above is considered material if there is a
substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable
user of the report on compliance about the Village's compliance with the requirements of each major federal
program as a whole.
In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards,
and the Uniform Guidance, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and
perform audit procedures responsive to those risks. Such procedures include examining, on a test basis,
evidence regarding the Village's compliance with the compliance requirements referred to above and
performing such other procedures as we considered necessary in the circumstances.
Obtain an understanding of the Village's internal control over compliance relevant to the audit in order to
design audit procedures that are appropriate in the circumstances 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 Village's internal control over compliance. Accordingly, no such opinion is
expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over
compliance that we identified during the audit.
Report on 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.
Page 183 of 2340
143
Agenda Item #3.
Our consideration of internal control over compliance was for the limited purpose described in the Auditor's
Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in
internal control over compliance that might be material weaknesses or significant deficiencies in internal control
over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control
over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or
significant deficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, no such opinion is expressed.
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 8, 2023
qa,41c6t, , x0ee-
Page 184 of 2340
144
Agenda Item #3.
VILLAGE OF TEQUESTA, FLORIDA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
Pass
Federal
Through
Pass Through
CFDA
Entitv
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-CERF-PALM-7-5A-042 $
43,509
Edward Byme Memorial Justice Assistance Grant Program N/A
16.738
6,056
Total U.S. Department of Justice
49,565
U.S. Department of Treasury
Equitable Sharing Program N/A
21.016
118,335
Coronavirus State and Local Fiscal Recovery Funds (ARPA) Florida Division of Emergency Mgmt
21.027
Y5306
1,537,120
Total U.S. Department of Treasury
TOTAL FEDERAL FINANCIAL ASSISTANCE
1,655,455
1,705,020
Page 185 of 2340
145
Agenda Item #3.
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
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, 2022. 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 Village, 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.
Note 4 - De-Minimus Indirect Cost Rate
During fiscal year ended September 30, 2022, the Village did not use the de-minimus indirect cost rate.
No amounts were passed to sub-recepients.
Page 186 of 2340
146
Agenda Item #3.
VILLAGE OF TEQEUSTA, FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
SECTION I
SUMMARY OF AUDIT RESULTS
Financial Statements
Type of report the auditor issued on whether the financial
statements were prepared in accordance with GAAP:
Internal control over financial reporting:
Material weaknesses identified?
Significant deficiencies identified not considered
to be material weaknesses?
Noncompliance material to financial statements noted?
Federal Prozrams
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?
AL 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, 2022 due to the total amount
expended being less than $750,000.
Page 187 of 2340
147
Agenda Item #3.
VILLAGE OF TEQEUSTA, FLORIDA
None reported.
None noted.
Not applicable.
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
SECTION II
FINANCIAL STATEMENT FINDINGS AND RESPONSES
SECTION III
FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS
SECTION IV
STATE PROJECTS FINDINGS AND QUESTIONED COSTS
Page 188 of 2340
148
Agenda Item #3.
VILLAGE OF TEQEUSTA, FLORIDA
None noted.
SCHEDULE OF FINDINGS AND RESPONSES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
STATUS OF PRIOR YEAR AUDIT FINDINGS
149
Page 189 of 2340
A enda Item #3.
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, 2022 and have issued our report thereon dated March 8, 2023.
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 8, 2023 should be considered in conjunction with this
management letter.
Prior Audit Findings
Section 10.554(l)(i)l., Rules of the Auditor General, requires that we determine whether or not corrective actions
have been taken to address findings and recommendations made in the preceding annual financial audit report. There
were no findings or recommendations in the preceding annual financial report requiring correction.
Official Title and Legal Authority
Section 10.554(1)(1)4., Rules of the Auditor General, requires that the name or official title and legal authority for
the primary government and each component unit of the reporting entity be disclosed in this management letter,
unless disclosed in the notes to the financial statements. The Village was incorporated in 1957 by laws of Florida
57-1915. There are no component units related to the Village.
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 190 Of 2340
Agenda Item #3.
Financial Condition and Management
Sections 10.554(l)(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(t)(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)(1)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 8, 2023
Page 191 of 2340
151
Agenda Item #3.
AULDIN
& ENKINS
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, 2022. 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.
We are required to be independent and to meet our ethical responsibilities in accordance with relevant ethical
requirements relating to the examination engagement.
In our opinion, the Village complied, in all material respects, with the aforementioned requirements for the year
ended September 30, 2022.
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.
qaac&t, , x0ee-
Bradenton, Florida
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